To ensure affordable housing facilities and accommodation for the weaker section of society, the government has come up with several housing schemes. These schemes are meant for affordable living conditions and the weak economic class people are able to find some sort of accommodation and housing help within their budget. If you are looking for a low-cost home loan, you must opt for a home loan EMI calculator. It is helpful for the weaker sections to cope with the crisis of a proper shelter and find proper housing. These schemes are regulated throughout the country, targeting those with low economic conditions and unstable incomes. The weak sections are not interested in knowing what a home loan is, because they can not afford one. The housing schemes work by offering low-budget houses and sometimes lowering the rate of intent, and also offer various help with finances to support the lower section of individuals throughout the country. These schemes are applicable in all the cities of India and the funds are granted by the government of India. For eligibility, the income of the individual needs to be determined, and no one with a good income will be taken into consideration under such housing schemes.
Range of affordable housing schemes
- For the mid-income individual, a cost-effective and affordable housing would count as a measuring unit between something like 600 and 1,200 sq ft, which is priced between Rs 12 lakh and Rs 50 lakh approximately for a proper household, and it will come with an EMI of Rs 10,000-30,000 per month. This housing scheme is applicable to people whose income would be in the ratio of 4:5.
- For low-income groups, a cost-effective or cheap housing option would be a home of 500-600 sq ft. The price of this would be somewhere between 7 Lakhs and 12 Lakhs and the borrower has to pay around 5000 to 10000 every month in the form of an EMI. It will include individuals that have an income of 3:4.
- For the EWS, the ratio of income is very low and the housing structure and price are very minimal. The housing accommodation will be around 300 to 500 sq ft, and the price of this house range would be 5 lakhs and the monthly payment would be something around 4000-5000 per month. The income ratio here is 2:3. This section is below average and the count is in the majority. Apply for house repair loan.
Affordable government housing schemes
- The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) – ‘Housing for All’ is a home loan scheme that envisions ‘Housing for All’ by the year 2022. This scheme is dedicated to ensuring that everyone has a shelter by the year 2022. There are many in India that do not have a property, a home or shelter to stay in. This initiative is in the name of the notable Prime Minister and the fund is generated from the PM fund. It targets the economically weaker sections (EWS), the Middle Income Group-I (MIG-I), and the Middle Income Group-II (MIG-II), and the Low Income Group (LIG) of society. This government scheme is working for the very poor and middle classes. Shelter for all is the main motive at a low cost. Housing is very affordable and the weaker sections of society can not afford it. The fund is generated to make sure everyone has a proper, well-built home.
- The PMGAY said this scheme will focus on pucca houses and basic requirements and amenities for the homeless people in the village areas. They are not targeting the ones in the city, but only the villages of India. The objective is to build over 1 crore homes by the year 2022. Though this will not be sufficient, it will be a great start to offer shelter to 1 crore people in India that are homeless. The government of India will offer financial help for the entire cost of property construction in the northeastern and hilly regions. The scheme also helps the bonded laborers and the tribal groups of Indian villages with amenities and shelter.
- The Andhra Pradesh Government came up with this scheme in the year 2016. It had a target of 19 lakh homes by the year 2019 and it has been successfully doing that. The scheme holds the same objective as housing for all. The weaker sections of society are targeted for housing and basic necessities. The beneficiaries under this scheme are entitled to various perks and advantages. They will be getting a subsidy of Rs. 1.5 lakh with reduced home loan EMI. The SC/ST individuals will get an extra subsidy of Rs.50,000 and the urban scheme will get Rs.2.5 lakh as an interest subsidy.
Wrapping up
In a nutshell, what is a home loan? It is best understood how you can take one with the help of a home loan EMI calculator. These schemes make it easy for anyone to get a home at a reduced cost and with low EMI.