How to buy a home with low income in India?


Read this article to know how you can buy a home in India even if you are from the low income group. Know from where you can get financing and which Government schemes can help you in fulfiling the dream of your own home.

Everyone dreams of owning their own house in future. The security and satisfaction of living in your own house are not describable. However, a rapid increase in urbanization and a spike in population density has led to mounting housing costs. This has led to a gap between the demand-supply chains for low-cost houses. However, it is possible to buy a home with a low income in India. This is because the Government of India has come up with many affordable housing schemes for those belonging to different sections of a stratified economy. Under the Housing for All initiative, the Union Government has offered affordable housing schemes. It is an aspirational strategy on the part of the Central Government to achieve housing for all by 2022.

Two of the top schemes by the government are:

  1. Pradhan Mantri Awas Yojana (Urban)-Pradhan Mantri Awas Yojana Mission is a housing scheme that was started in 2015. It aims to provide housing for all, specifically for those who are homeless. All union territories and states in India are eligible for this scheme. This scheme also offers a subsidy on home loan interest rate amount for those who are purchasing a house in urban areas for the first time.

  2. Pradhan Mantri Gramin Awas Yojana-Pradhan Mantri Gramin Awas Yojana is an affordable housing scheme for the rural poor in India. It was previously known as Indira Awas Yojana and was launched by Rajiv Gandhi in 1985. It was one of the major flagship programs of the Ministry of Rural Development. The target of this scheme has been to build houses for poor people in villages. Under this scheme, villagers with low income can have Pucca houses with basic amenities. This housing plan provides financial assistance and covers the construction along with the state.
An alternative option through which one can buy a home with low income in India is to take a home loan. There has been a huge growth in the home loan sector in recent years. An affordable Housing Loan is one of the excellent home loan options that people from the low-income group can avail.

Affordable Housing Loan


Through Affordable Home Loan, one can buy a house even if he/she earns a low income. Affordable home loan plans are specifically designed for those belonging to the economically weaker sections. They also allow one to customize the repayment of a loan according to one's need and ability. The Affordable Home Loan plan of various banks and financial service providers works in tandem with the Government's Pradhan Mantri Awas Yojana. Apart from low-income groups, the target section of these housing schemes offered by both the public sector and private sector also includes SC, ST and women. They are also meant for those living in the periphery of metros, tier-1 and tier-2 cities. The central government and private financial institutions are working together to address the severe housing shortage faced by the low income and marginalized sections of both urban and rural regions in India.


Comments

Author: Dr. Sanchita Ranjan28 Sep 2020 Member Level: Gold   Points : 1


Everyone has a dream to own a house. Buying a house is not an easy task for everyone, especially for people belonging to the low-income group.
Housing cost is increasing day by day because of the rapid increase in population and urbanisation but there are some schemes provided by the govt of India such as Pradhan Mantri Aawas Yojana, Pradhan Mantri Gramin Aawas Yojana etc which can help.

Author: Umesh28 Sep 2020 Member Level: Diamond   Points : 6

This is really a very informative article by the author. Today everyone is searching for a scheme for a home loan where the loan repayment (EMI) is minimum. Some schemes as mentioned in the article are meant for the lower class and are funded and supported by the Govt. For others, the only alternative is to try home loan from the banks and other lending agencies. One thing which comes to mind is due to the nuclear family pattern the families are nowadays smaller and people are conscious of the population explosion and standard of living associated with it and in that light small families can manage their living in a small house also and should not unnecessarily go for a bigger one which is beyond the paying capacity. In addition to that one has to see that wasteful expenditure is not to be done towards the luxuries and add ons in the house or flat. People who understand their financial condition and believe in taking a minimum loan are the real prudent ones and can manage the things comfortably. Remember loan is the last resort and one has to consider all pros and cons associated with it. Just giving an example that I was eligible for a home loan from a bank and I could go for a bigger house but seeing my financial condition in totality and my liabilities I decided to go for a smaller loan almost half of the sanctioned amount and I was very comfortable in repaying that though my colleagues and relatives always insisted me to go for a bigger house.



  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: