Affordable Housing Changing The Face Of Real Estate Sector

affordable housing changing face of real estate sector india property loans

In India, the real estate sector has witnessed some major developments in the recent past. With the government making regular contributions to public-private partnerships to encourage affordable housing and with RERA coming in to play, this sector has become more transparent for new consumers like you. After several years, the government has awarded affordable housing with infrastructure status. This has encouraged the real estate developers to construct eco-friendly houses at economical prices. This in turn has reduced the cost of borrowing for affordable projects. To make home buying easier, the Indian government has also launched the credit-linked subsidy scheme under Pradhan Mantri Awas Yojana (PMAY). As a first-time homebuyer, you can claim interest subsidy on your home loan basis your eligibility as per your income. 

With all this in place, read on to know how affordable housing is changing the face of the real estate sector in India. 

Availability Of Affordable Finance 

The introduction of PMAY has promoted affordability, inspiring prospective homeowners like you to avail a home loan to purchase or construct a house. You can qualify for PMAY under any of its sub-schemes based on your annual household income. The prominent subsections of PMAY are: Economical Weaker Sections (EWS), Low Income Group (LIG) or Medium Income Group (MIG). Once you qualify under any of these schemes, you can immediately apply for a home loan from lenders listed under PMAY to access the interest subsidies. 

Additionally, several state governments have also reduced stamp duty charges for women, and lenders are also offering a reduction in the home loan interest rates for women. To make your home purchase affordable and convenient avail a Home Loan from trusted lenders like Bajaj Finserv, who offers more affordable home loans for women and also lends under the PMAY scheme, to access up to Rs.3.5 crore on a nominal interest rate that you can repay through a flexible tenor as per your convenience. Added to this you also can access an array of benefits like online account management, low interest top-up loan, zero charge on prepayment or foreclosure, and much more on your sanction. 

Revised Category Specifications 

Until a few months back, as a part of the MIG I category of PMAY, you were eligible for a subsidy on a home loan taken to purchase a home of up 120 square meters and for MIG II, the cap was put at 150 square meters. However, after the new revisions thanks to the rise of affordable housing, as part of the MIG I category, you can now enjoy an increased cap of 160 square meters and for MIG II, the cap is now at 200 square meters. This alteration of the carpet area limit will in turn impact and increase your benefits under PMAY. So, you can now own a bigger home while enjoying the interest subsidy. Here is how the subsidy for each group is calculated for Pradhan Mantri Awas Yojana scheme. 

● Those from the EWS and LIG category are allowed a Credit-Linked subsidy of 6.5% on a home loan of up to Rs.6 lakh. 

● Those in the MIG I category are allowed a Credit-Linked subsidy of 4% on a home loan of up to Rs.9 lakh. 

● Those in the MIG II category are allowed a Credit-Linked subsidy of 3% on a home loan of up to Rs.12 lakh. 

Boost in Urbanisation 

With housing becoming affordable for those in various income brackets, more and more people are buying their own house. Moreover, with CLSS benefits and a higher carpet area purchase limit, you can now choose homes in urban areas without having to worry about the price. This lucrative demand has boosted real estate in small towns and non-metro cities. These are now experiencing rapid urbanisation with better amenities and infrastructure to offer you more choices and an upgrade in lifestyle too. 

The trend of lucrative housing is having a positive impact on the real estate market, which has witnessed an increase in cash flow over time. You can also avail the online home loan under PMAY to make the home buying experience more affordable. Before applying for a loan, calculate your monthly EMI expense using a home loan EMI calculator and check your pre- approved offer to avail instant financing for your house in a hassle-free manner.


I hope you enjoyed this blog post about affordable housing changing the face of the real estate sector in India.

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