An Insight into Affordable Housing Initiatives in India

Affordable housing has become a crucial issue in India as urbanisation and population lead to housing demand. In response to this challenge, housing societies and cooperative housing have emerged as popular models to provide affordable and sustainable housing options to the masses. This article aims to explore the concept of housing societies and suitable housing in India, shedding light on their significance, functioning, and impact on the housing landscape of the country.

Exploring Housing Societies and Co-operative Housing

1. The Significance of Housing Societies

Housing societies play a pivotal role in fulfilling the housing needs of individuals and families by providing affordable and secure accommodation. These societies are typically formed by people pooling their resources to acquire land, develop infrastructure, and construct residential units.

2. Co-operative Housing: A Community-driven Approach

Co-operative housing societies are another prevalent model in India, promoting community-driven development and management of housing projects. In a cooperative housing society, the members collectively own and manage the housing complex, thereby eliminating the dependency on external developers or builders. In addition, this approach empowers residents to participate in decision-making processes actively, ensuring transparency, accountability, and affordability.

3. Accessible Financing Options

One of the critical advantages of housing societies and cooperative housing is the availability of accessible financing options. Members can leverage their collective savings and financial resources to secure loans from banks or financial institutions at favourable terms. It facilitates affordable housing loans with lower interest rates, longer repayment tenures, and flexible repayment options, making homeownership more feasible for the economically weaker sections.

4. Government Initiatives and Support

Recognising the significance of affordable housing, the Indian government has implemented several initiatives and policies to promote housing societies and cooperative housing. Schemes like the Pradhan Mantri Awas Yojana (PMAY) aim to provide affordable housing to all, focusing on marginalised sections of society. These initiatives offer financial assistance, tax benefits, and subsidies to individuals and cooperative housing societies, encouraging their development and sustainability.

3 Affordable Housing Schemes by Government in India: Benefits And Eligibility

The following government schemes can help you avoid the high rates in the industry while ensuring affordable housing and better construction quality.

1. Pradhan Mantri Awas Yojana (PMAY Urban)

The Indian government launched PMAY to assist the Economic Weaker Section (EWS) in affording housing in India. PMAY-Urban provides a subsidy of up to ₹2.67 lakhs for eligible individuals. The eligibility depends on criteria such as sub-section, loan amount, and house size.

Section	Household Income	Eligible Loan amount
Economically Weaker Section	Up to Rs. 3 lakh	Up to Rs. 6 lakh
Low-Income Group	Rs. 3 lakh – Rs. 6 lakh	Up to Rs. 6 lakh
Middle-Income Group I	Rs. 6 lakh – Rs. 12 lakh	Up to Rs. 9 lakh
Middle-Income Group II	Rs. 12 lakh – Rs. 18 lakh	Up to Rs. 12 lakh

2. Pradhan Mantri Awas Yojana (PMAY Gramin)

Originally known as the Indira Awaas Yojana, PMAY Gramin aims to provide permanent homes with essential facilities to homeless families by 2024. The Central and State governments will share the housing cost in a 60:40 ratio in the plain regions, providing ₹1.20 lakh in assistance per unit. In northeastern states, Himalayan states, and the Union Territory of Jammu & Kashmir, the ratio is 90:10, with support of up to ₹1.30 lakh per unit.

Eligibility criteria are as follows:

The family should not already own a sturdy house.
The beneficiary's family should consist only of a spouse or unmarried children.
Individuals belonging to Scheduled Cast (SC), Scheduled Tribe (ST), those not falling into SC or ST categories but classified Below Poverty Line (BPL), and free bonded labourers are eligible for this scheme.

3. Rajiv Awas Yojana

The Rajiv Awas Yojana aims to eradicate slums in India. Also known as the Rajiv Housing Scheme, it's a Central Sector Scheme designed to offer cheap housing, social amenities, and civic infrastructure to the urban poor.

Eligibility criteria are as follows:

The scheme is open to residents of city slums (whether officially recognized or not), individuals living in Central and state government properties, autonomous bodies governed by parliamentary acts, urban local bodies, and villages within city plans.
Priority is for cities and Union Territories with a high population of Scheduled Tribes (STs), Scheduled Castes (SCs), minorities, and slums.
Towns with historical or heritage significance, those dominated by the tourism industry, and district headquarters receive special consideration.

Final Word

Housing societies and cooperative housing have emerged as viable solutions to address the affordable housing crisis in India. By harnessing the collective power of individuals and fostering community-driven approaches, these models provide accessible financing options, promote transparency, and empower residents to shape their living environments actively. As the government continues prioritising affordable housing through supportive policies and initiatives, housing societies and cooperative housing are expected to play an increasingly significant role in ensuring sustainable and inclusive urban development across the country.

Frequently asked questions

1. What is affordable housing?

Ans. Affordable housing refers to affordable housing units within the financial means of low-income and middle-income individuals and families. These units are priced lower than the market rate, making them more accessible and affordable for those with limited financial resources.

2. Are there any financial assistance programs available for affordable housing?

Ans. The Indian government has implemented various financial assistance programs and schemes to support affordable housing initiatives. For example, the Pradhan Mantri Awas Yojana (PMAY) program provides subsidies and loans with favourable terms to eligible individuals and housing societies. In addition, banks and financial institutions also offer unique housing loan products for affordable housing projects.

An Overview Of Affordable Housing In India

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