Not everyone is financially capable of buying a house on their own. The financial limitations of many in the country have led to increasing affordable housing options. Affordable housing generally means housing units that are affordable. Government schemes and home loans offered by various banks and NBFCs are the key contributors to the mission of affordable housing. With the presence of the affordablehome loanpolicies streamlined by the government and private developers, the impediments to buying a house have become easier for the home buyers.

The sector of affordable housing in India can be categorised into two sectors, one being the Government schemes and the other is the private schemes. Here is all you as a home buyer need to know about the two categories.

Cost-effective housing plans offered by the Government

The government of India has been motivating people of different income groups to come forward and buy affordable housing for themselves. The ruling parties in the suburbs have been providing housing schemes to the people in need of homes. But it was not until recently that the demand for those policies witnessed a surge. Through these plans, buyers can have a concrete house with a carpet area of 30-60 sq. mtr. These schemes are specifically designed for slum dwellers and families whose annual income is less than Rs. 6 Lakhs.

Here are the housing plans and initiatives offered by the present government

Pradhan Mantri Awas Yojana (PMAY)

PMAY is one of the most popular welfare schemes rendered by the government. The scheme was launched in 2015 with the aim to provide housing to all. The PMAY Credit Link Subsidy Scheme for the low-income group or the economically weaker group and the middle-income group has made a home loan affordable. This scheme generates a subsidy for the first time buyers directly to their bank account. This assures transparency as the home buyer does not require any mediator. It prevents them from losing any penny on commissions.

Providing low-grade home loans for the priority sections

The RBI has specified home loans lesser than Rs. 35 lakhs as a priority sector for lending. Individuals from low-income groups can borrow from banks for new home loans as well as opt to transfer their balance from other banks.

Demand-led affordable housing by the middle-income groups

The government-led initiatives are not profit-based. Thus builders arereluctant to invest in those segments. However, they accrue profit from home buyers from the middle-income groups.

Those days are gone, when people had to save up every penny to buy a house even if it is out of their budget. In present times, home buyers search for builders who can provide them with the basic features of a proper house at the most reasonable prices. They generally tend to look for the following.

• An excellent deal at a low price
• Raw materials of supreme quality
• Greater opportunities of resale
• Availability of the most basic as well as luxury facilities.

Developers who offer these features reap the benefits, as the profits made are gigantic. The government too allows tax concessions on the profits made on these ventures.

What’s in Affordable housing for home buyers

Affordable housing is receiving immense attention from every nook and cranny of the country. If you are a home buyer, this could prove to be a very valuable investment for you in the future, provided the builder follows a set of quality standards and practices.

If you are entitled to the government schemes, especially the PMAY scheme, you can save a huge amount of money while having a moderate house for you and your family. You can avail an affordable home loan with a low-interest rate. This can help you save lakhs without intimidating your future savings.

Having a house of your own is not just a dream anymore, it can come true. However, there are a few things that you should pay attention to before buying your own home-

• Good quality should be a priority.
• The builder should stick to the standard regulations.
• Check if the bank and government offers can be of any help to you.
• Search for trustworthy developers who offer affordable projects for your dream home.
• Keep suburban areas as an option too.

If you are mindful about these aspects, you are completely ready to buy your dream house.