The real estate sector holds significant importance in India’s economy, acting as a crucial contributor to the country’s GDP and employment generation. Boasting a diverse landscape that includes residential, commercial, retail, and industrial properties, the real estate industry plays a pivotal role in shaping India’s urbanization and infrastructure development. With a rapidly growing population and urban migration, the demand for affordable housing and quality infrastructure is at an all-time high. The Indian government recognizes the need to address these challenges and has thus introduced a myriad of schemes and subsidies to boost the real estate sector.
In this blog post, we will delve into various government initiatives that aim to promote the growth and development of the real estate industry in India. These schemes and subsidies have been designed to cater to different segments of the market, such as affordable housing, infrastructure development, and green building projects.
We will explore the benefits, eligibility criteria, and application procedures for these programs, offering insights into how they can assist individuals, developers, and companies involved in real estate projects. By understanding and leveraging these government incentives, stakeholders in the Indian real estate industry can contribute to the country’s economic growth and social development, while capitalizing on the numerous opportunities that lie ahead.
Subsidies for Real Estate Industry
| Subsidy Name | Benefits | Eligibility | How to Apply |
| Pradhan Mantri Awas Yojana (PMAY) | Interest subsidy on home loans under the Credit Linked Subsidy Scheme (CLSS) | EWS, LIG, and MIG households | Apply through a PLI (Primary Lending Institution) such as banks, NBFCs, or HFCs |
| Real Estate (Regulation and Development) Act (RERA) | Ensures transparency, accountability, and efficiency in real estate transactions | Real estate developers and agents | Register projects and agents on the respective state’s RERA website |
| Goods and Services Tax (GST) | Simplified indirect tax structure; reduced tax burden on under-construction properties | Developers and buyers of under-construction properties | No application required; GST is automatically applied during transactions |
| Infrastructure Status to Affordable Housing | Cheaper loans, tax exemptions, and other benefits for affordable housing projects | Real estate developers focused on affordable housing | No specific application; benefits apply to projects meeting affordable housing criteria |
| Public-Private Partnerships (PPP) in Affordable Housing | Tax benefits, subsidies, and easier access to credit for affordable housing projects | Private developers partnering with the government in affordable housing projects | Participate in government tenders for PPP affordable housing projects |
| Real Estate Investment Trusts (REITs) | Allows investment in income-generating real estate assets; new source of funding for the sector | Individual investors and real estate companies | Purchase REIT units through stock exchanges or during initial public offerings |
| Smart Cities Mission | Infrastructure development, leading to growth in real estate sector | Developers, urban local bodies, and citizens in selected smart cities | Participate in urban development projects in collaboration with local government bodies |
| Atal Mission for Rejuvenation and Urban Transformation (AMRUT) | Improved infrastructure, leading to real estate development in 500 cities | Developers, urban local bodies, and citizens in AMRUT cities | Participate in urban development projects in collaboration with local government bodies |
| Housing for All (Urban) Mission | Aims to provide affordable housing to urban poor | Urban poor, slum dwellers, and economically weaker sections | Apply through the respective state or city’s urban housing development authority |
| National Urban Housing Fund (NUHF) | Provides financial support for affordable housing projects | Central and state government agencies, urban local bodies, and public sector undertakings | Apply through respective state or city’s housing and urban development authority |
| Swarna Jayanti Shahari Rozgar Yojana (SJSRY) | Provides self-employment opportunities in the urban housing sector | Urban poor with annual income below the poverty line | Apply through respective municipal corporations or urban local bodies |
| Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) | Provides skill training and employment opportunities in the urban housing sector | Urban poor, particularly women, Scheduled Castes (SCs), Scheduled Tribes (STs), and people with disabilities | Apply through respective city or state’s urban local bodies or mission management units |
| Integrated Low-Cost Sanitation Scheme (ILCS) | Provides financial assistance for constructing low-cost sanitation facilities in urban areas | Urban local bodies and households below the poverty line | Apply through respective municipal corporations or urban local bodies |
| Slum Rehabilitation Scheme (SRS) | Provides incentives for the development of slum rehabilitation projects | Developers and slum dwellers | Apply through the respective state’s Slum Rehabilitation Authority (SRA) |
| Pradhan Mantri Gramin Awaas Yojana (PMGAY) | Aims to provide affordable housing in rural areas | Rural households, particularly those belonging to SC/ST and other economically weaker sections | Apply through the respective Gram Panchayat or Block Development Office (BDO) |
| Affordable Rental Housing Complexes (ARHCs) | Promotes affordable rental housing for urban migrants and poor | Urban migrants, poor, and other eligible groups | Apply through the respective state’s housing and urban development authority or ARHC portal |
| Rajiv Awas Yojana (RAY) | Provides financial assistance for slum redevelopment and affordable housing | Urban poor, slum dwellers, and economically weaker sections | Apply through the respective state or city’s urban housing development authority |
| Jawaharlal Nehru National Urban Renewal Mission (JNNURM) | Aims to improve urban infrastructure and housing for the urban poor | Urban local bodies, state governments, and developers undertaking projects in eligible cities | Apply through the respective state or city’s urban development authority |
| Credit Risk Guarantee Fund Scheme (CRGFS) | Provides credit guarantee for low-income housing loans | Housing finance companies (HFCs) and banks offering loans to the low-income segment | Apply through the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) |
| Special Window for Affordable and Mid-Income Housing (SWAMIH) | Offers financing for stalled housing projects for middle and low-income groups | Real estate developers with stalled projects in the affordable and mid-income categories | Apply through the SWAMIH Investment Fund managed by SBICAP Ventures Limited |
| National Rental Housing Policy | Facilitates the growth of the rental housing market | Private developers, public-private partnerships (PPPs), and urban local bodies | Participate in rental housing projects in collaboration with local government bodies |
| Tamil Nadu Housing Board (TNHB) | Provides affordable housing options in Tamil Nadu | Citizens of Tamil Nadu, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the Tamil Nadu Housing Board’s official website or offices |
| Maharashtra Housing and Area Development Authority (MHADA) | Offers affordable housing options in Maharashtra | Citizens of Maharashtra, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the MHADA official website or offices during announced lottery schemes |
| Delhi Development Authority (DDA) Housing Scheme | Offers affordable housing options in Delhi | Citizens of Delhi, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the DDA official website or offices during announced lottery schemes |
| Telangana State Housing Corporation Limited (TSHCL) | Provides affordable housing options in Telangana | Citizens of Telangana, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the TSHCL official website or offices |
| West Bengal Housing Infrastructure Development Corporation (WBHIDCO) | Offers affordable housing options in West Bengal | Citizens of West Bengal, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the WBHIDCO official website or offices |
| Karnataka Housing Board (KHB) | Provides affordable housing options in Karnataka | Citizens of Karnataka, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the KHB official website or offices |
| Andhra Pradesh Housing Board (APHB) | Offers affordable housing options in Andhra Pradesh | Citizens of Andhra Pradesh, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the APHB official website or offices |
| Rajasthan Housing Board (RHB) | Provides affordable housing options in Rajasthan | Citizens of Rajasthan, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the RHB official website or offices during announced lottery schemes |
| Kerala State Housing Board (KSHB) | Offers affordable housing options in Kerala | Citizens of Kerala, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the KSHB official website or offices |
| Odisha State Housing Board (OSHB) | Provides affordable housing options in Odisha | Citizens of Odisha, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the OSHB official website or offices |
| Haryana Urban Development Authority (HUDA) | Offers affordable housing options in Haryana | Citizens of Haryana, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the HUDA official website or offices during announced lottery schemes |
| Gujarat Housing Board (GHB) | Provides affordable housing options in Gujarat | Citizens of Gujarat, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the GHB official website or offices during announced lottery schemes |
| Uttar Pradesh Avas Vikas Parishad (UPAVP) | Provides affordable housing options in Uttar Pradesh | Citizens of Uttar Pradesh, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the UPAVP official website or offices during announced lottery schemes |
| Chhattisgarh Housing Board (CGHB) | Offers affordable housing options in Chhattisgarh | Citizens of Chhattisgarh, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the CGHB official website or offices |
| Goa Housing Board (GHB) | Provides affordable housing options in Goa | Citizens of Goa, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the GHB official website or offices |
| Jammu & Kashmir Housing Board (JKHB) | Offers affordable housing options in Jammu and Kashmir | Citizens of Jammu and Kashmir, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the JKHB official website or offices |
| Jharkhand State Housing Board (JSHB) | Provides affordable housing options in Jharkhand | Citizens of Jharkhand, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the JSHB official website or offices |
| Madhya Pradesh Housing Board (MPHB) | Provides affordable housing options in Madhya Pradesh | Citizens of Madhya Pradesh, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the MPHB official website or offices during announced lottery schemes |
| Bihar State Housing Board (BSHB) | Offers affordable housing options in Bihar | Citizens of Bihar, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the BSHB official website or offices |
| Punjab Urban Planning and Development Authority (PUDA) | Provides affordable housing options in Punjab | Citizens of Punjab, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the PUDA official website or offices during announced lottery schemes |
| Himachal Pradesh Housing and Urban Development Authority (HIMUDA) | Offers affordable housing options in Himachal Pradesh | Citizens of Himachal Pradesh, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the HIMUDA official website or offices |
| Assam State Housing Board (ASHB) | Provides affordable housing options in Assam | Citizens of Assam, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the ASHB official website or offices |
| Tripura Housing and Construction Board (THCB) | Provides affordable housing options in Tripura | Citizens of Tripura, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the THCB official website or offices |
| Uttarakhand Housing and Urban Development Authority (UHUDA) | Offers affordable housing options in Uttarakhand | Citizens of Uttarakhand, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the UHUDA official website or offices |
| Meghalaya Urban Development Authority (MUDA) | Provides affordable housing options in Meghalaya | Citizens of Meghalaya, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the MUDA official website or offices |
| Mizoram Urban Development and Poverty Alleviation Department (MUDPAD) | Offers affordable housing options in Mizoram | Citizens of Mizoram, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the MUDPAD official website or offices |
| Sikkim Housing and Development Board (SHDB) | Provides affordable housing options in Sikkim | Citizens of Sikkim, with a focus on economically weaker sections, low-income, and middle-income groups | Apply through the SHDB official website or offices |
| Smart Cities Mission | Funding and support for the development of smart cities with sustainable infrastructure | Urban local bodies, state governments, and developers undertaking projects in eligible cities | Apply through the Ministry of Housing and Urban Affairs’ (MoHUA) Smart Cities Mission portal |
| Atal Mission for Rejuvenation and Urban Transformation (AMRUT) | Improves basic urban infrastructure, such as water supply, sewerage, and urban transport | Urban local bodies and state governments of selected cities | Apply through the respective state or city’s urban development authority or the MoHUA AMRUT portal |
| Heritage City Development and Augmentation Yojana (HRIDAY) | Focuses on the holistic development of heritage cities, including infrastructure and tourism | Urban local bodies, state governments, and developers undertaking projects in eligible heritage cities | Apply through the respective state or city’s urban development authority or the MoHUA HRIDAY portal |
| National Urban Livelihoods Mission (NULM) | Provides skill training, self-employment opportunities, and support to urban poor | Urban poor, street vendors, and homeless individuals | Apply through the respective city or state’s urban development authority or the MoHUA NULM portal |
| Technology Sub-Mission under PMAY-Urban | Promotes the adoption of innovative, sustainable, and disaster-resilient technologies in housing | Developers, urban local bodies, and state governments undertaking housing projects for the urban poor | Apply through the respective state or city’s housing and urban development authority or the PMAY-U portal |
| Swachh Bharat Mission (Urban) | Funding and support for improving urban sanitation and solid waste management | Urban local bodies, state governments, and developers undertaking projects in eligible cities | Apply through the Ministry of Housing and Urban Affairs’ (MoHUA) Swachh Bharat Mission (Urban) portal |
| National Urban Health Mission (NUHM) | Provides funding and support for improving urban health infrastructure | Urban local bodies, state governments, and developers undertaking projects related to urban health infrastructure | Apply through the respective state or city’s health department or the Ministry of Health and Family Welfare (MoHFW) NUHM portal |
| Green Rating for Integrated Habitat Assessment (GRIHA) | Offers incentives for adopting sustainable and energy-efficient practices in building construction | Developers and builders adopting GRIHA standards for their projects | Register and apply for GRIHA certification through the GRIHA Council’s official website |
| Industrial Infrastructure Upgradation Scheme (IIUS) | Supports the development of infrastructure in industrial parks and estates | Developers, industry associations, and state industrial development corporations | Apply through the Department for Promotion of Industry and Internal Trade (DPIIT) during the application window for the scheme |
| Solar City Programme | Promotes the use of renewable energy in urban areas by providing financial and technical assistance | Urban local bodies, state governments, and developers undertaking renewable energy projects in eligible cities | Apply through the Ministry of New and Renewable Energy’s (MNRE) Solar City Programme portal |
| Urban Transport Scheme (UTS) | Funding and support for improving urban transport infrastructure | Urban local bodies, state governments, and developers undertaking projects in eligible cities | Apply through the Ministry of Housing and Urban Affairs’ (MoHUA) Urban Transport portal |
| FAME India Scheme (Faster Adoption and Manufacturing of Electric Vehicles) | Offers incentives for electric vehicle charging infrastructure development | Developers, local authorities, and business entities installing electric vehicle charging infrastructure | Apply through the Department of Heavy Industry’s (DHI) FAME India Scheme portal |
| National Heritage City Development and Augmentation Yojana (Hriday) | Funding and support for the development of heritage cities and promoting tourism | Urban local bodies, state governments, and developers undertaking projects in eligible heritage cities | Apply through the Ministry of Housing and Urban Affairs’ (MoHUA) Hriday portal |
| Nagar Van Udyan Yojana (Urban Forest Scheme) | Financial and technical assistance for developing urban forests and green spaces | Urban local bodies, state governments, and developers undertaking urban forestry and green space projects | Apply through the Ministry of Environment, Forest and Climate Change’s (MoEFCC) portal |
| Riverfront Development Scheme | Funding and support for the development of riverfront areas, including infrastructure and amenities | Urban local bodies, state governments, and developers undertaking projects in eligible riverfront areas | Apply through the respective state or city’s urban development authority or the Ministry of Housing and Urban Affairs (MoHUA) portal |
| National Lake Conservation Plan (NLCP) | Funding and support for the conservation and management of urban lakes | Urban local bodies, state governments, and developers undertaking projects for urban lake conservation | Apply through the Ministry of Environment, Forest and Climate Change (MoEFCC) portal |
| Metro Rail Policy | Facilitates funding and support for the development of metro rail systems in urban areas | Urban local bodies, state governments, and developers undertaking metro rail projects | Apply through the Ministry of Housing and Urban Affairs (MoHUA) Metro Rail Policy portal |
| Urban Greening and Beautification Scheme | Financial and technical assistance for the development of parks, gardens, and green spaces in urban areas | Urban local bodies, state governments, and developers undertaking urban greening and beautification projects | Apply through the respective state or city’s urban development authority or the Ministry of Housing and Urban Affairs (MoHUA) portal |
| Rurban Mission (Shyama Prasad Mukherji Rurban Mission) | Aims to develop rural areas with urban-like infrastructure and economic opportunities | Local governments, village panchayats, and developers undertaking projects in selected rural areas | Apply through the Ministry of Rural Development’s Rurban Mission portal |
| Urban Water Supply and Sanitation Scheme | Funding and support for the development of water supply and sanitation infrastructure in urban areas | Urban local bodies, state governments, and developers undertaking projects for urban water supply and sanitation | Apply through the Ministry of Housing and Urban Affairs (MoHUA) or respective state or city’s urban development authority portal |
| Transit-Oriented Development (TOD) Policy | Incentives for promoting compact, walkable, and mixed-use development around transit corridors | Developers, urban local bodies, and state governments undertaking projects in eligible transit corridors | Apply through the respective state or city’s urban development authority or the Ministry of Housing and Urban Affairs (MoHUA) portal |
| National Mission for Clean Ganga (NMCG) | Funding and support for projects aimed at cleaning and rejuvenating the Ganga River Basin | Urban local bodies, state governments, and developers undertaking projects in the Ganga River Basin | Apply through the National Mission for Clean Ganga’s (NMCG) official website or offices |
| National Urban River Conservation Plan (NURCP) | Financial assistance for the conservation and management of urban rivers and their surroundings | Urban local bodies, state governments, and developers undertaking projects for urban river conservation | Apply through the Ministry of Environment, Forest and Climate Change (MoEFCC) or respective state or city’s urban development authority portal |
| Urban Road Transport Scheme (URTS) | Funding and support for the development of urban road transport infrastructure | Urban local bodies, state governments, and developers undertaking projects for urban road transport infrastructure | Apply through the Ministry of Housing and Urban Affairs (MoHUA) or respective state or city’s urban development authority portal |
| Integrated Power Development Scheme (IPDS) | Financial assistance for strengthening urban power distribution infrastructure | Urban local bodies, state governments, and developers undertaking projects for urban power distribution infrastructure | Apply through the Ministry of Power’s (MoP) IPDS portal or respective state or city’s power department portal |
| Accelerated Urban Water Supply Programme (AUWSP) | Funding and support for improving urban water supply systems in small and medium towns | Urban local bodies, state governments, and developers undertaking projects for urban water supply systems in small and medium towns | Apply through the Ministry of Housing and Urban Affairs (MoHUA) or respective state or city’s urban development authority portal |
| National Land Records Modernization Programme (NLRMP) | Aims to modernize land records management and provide transparent land titles | State governments, urban local bodies, and developers undertaking projects for land records management and modernization | Apply through the Department of Land Resources (DoLR) or respective state or city’s land records department portal |
| Mudra Loan (under Pradhan Mantri Mudra Yojana) | Provides loans for the development of small businesses, including real estate ventures | Small business owners, including real estate entrepreneurs, can avail loans up to INR 10 lakhs | Apply through any public or private sector bank, regional rural bank, or non-banking financial company (NBFC) authorized for Mudra loans |
| Stand-Up India Scheme | Offers loans for new projects in manufacturing, services, or trading sectors, including real estate | SC/ST and women entrepreneurs starting new enterprises in manufacturing, services, or trading sectors | Apply online through the Stand-Up India portal or visit any bank branch authorized for Stand-Up India loans |
| Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) | Provides credit guarantee for loans availed by micro and small enterprises, including real estate ventures | Micro and Small Enterprises (MSEs) in the manufacturing and service sectors, including real estate developers | Apply through any bank or financial institution registered as a Member Lending Institution (MLI) with CGTMSE |
| Credit Linked Subsidy Scheme for Middle Income Group (CLSS-MIG) | Subsidy on home loan interest for middle-income group homebuyers | Middle-income group individuals with annual household income between INR 6 lakhs and INR 18 lakhs, purchasing or constructing a new house | Apply through any Primary Lending Institution (PLI) such as banks, housing finance companies, or other financial institutions |
| National Housing Bank (NHB) Refinance Scheme | Provides refinance for housing loans to eligible housing finance companies | Housing Finance Companies (HFCs) that lend to homebuyers, including for real estate development projects | Apply through the National Housing Bank (NHB) by submitting a refinance application with relevant documents |
| SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises (SMILE) | Offers soft loans for new or existing MSME projects, including real estate ventures | Micro, Small, and Medium Enterprises (MSMEs) in manufacturing and service sectors, including real estate developers | Apply through the Small Industries Development Bank of India (SIDBI) or any bank, NBFC, or financial institution associated with SIDBI |
| Refinance Scheme for Scheduled Castes (SC) Entrepreneurs | Provides concessional loans for setting up new or expanding existing enterprises, including real estate ventures | Scheduled Caste (SC) entrepreneurs setting up new enterprises or expanding existing ones in manufacturing or services, including real estate development | Apply through the National Scheduled Castes Finance and Development Corporation (NSFDC) or its affiliated state channelizing agencies |
| NABARD Infrastructure Development Assistance (NIDA) | Offers loans for infrastructure projects, including real estate projects in rural areas | State governments, corporations, and other entities undertaking infrastructure development projects in rural areas, including real estate projects | Apply through the National Bank for Agriculture and Rural Development (NABARD) by submitting a project proposal and other relevant documents |
| Technology Upgradation Fund Scheme (TUFS) for Textile and Jute Industries | Provides concessional loans for upgrading technology in textile and jute sectors, including setting up textile parks | Textile and jute industrial units, including those setting up textile parks, for modernizing or upgrading technology | Apply through any scheduled commercial bank or financial institution associated with the Ministry of Textiles for the TUFS scheme |
| Micro Units Development and Refinance Agency Bank (MUDRA) Loan for Construction and Allied Activities | Loans for small businesses in construction and allied activities | Small business owners in construction and allied sectors with a loan requirement up to INR 10 lakhs | Apply through any public or private sector bank, regional rural bank, or non-banking financial company (NBFC) authorized for MUDRA loans |
| India Infrastructure Finance Company Limited (IIFCL) Infrastructure Financing | Loans for infrastructure projects, including real estate projects | Developers and companies undertaking infrastructure projects, including real estate projects | Apply through the India Infrastructure Finance Company Limited (IIFCL) by submitting a project proposal and other relevant documents |
| SIDBI – Loan for Purchase of Equipment for Enterprise’s Development (SPEED) | Loans for the purchase of equipment and machinery for MSMEs, including real estate ventures | Micro, Small, and Medium Enterprises (MSMEs) in manufacturing and service sectors, including real estate developers | Apply through the Small Industries Development Bank of India (SIDBI) or any bank, NBFC, or financial institution associated with SIDBI |
| National Urban Livelihoods Mission (NULM) – Self Employment Programme (SEP) | Loans for micro-enterprises, including real estate businesses | Urban poor individuals or groups, including those in the real estate sector, with a loan requirement up to INR 2 lakhs | Apply through the Urban Local Body (ULB) or the State Urban Livelihoods Mission (SULM) in the respective state |
| EXIM Bank – Project Export Finance | Loans for overseas infrastructure projects, including real estate projects | Indian companies executing infrastructure projects, including real estate projects, in foreign countries | Apply through the Export-Import Bank of India (EXIM Bank) by submitting a project proposal and other relevant documents |
| Term Loan for Infrastructure Projects by India Infrastructure Finance Company Ltd. (IIFCL) | Loans for infrastructure projects, including real estate projects | Developers and companies undertaking infrastructure projects, including real estate projects | Apply through the India Infrastructure Finance Company Ltd. (IIFCL) by submitting a project proposal and other relevant documents |
| Construction and Housing Loan by Small Industries Development Bank of India (SIDBI) | Loans for housing and construction projects undertaken by MSMEs | Micro, Small, and Medium Enterprises (MSMEs) in the construction and housing sectors | Apply through the Small Industries Development Bank of India (SIDBI) or any bank, NBFC, or financial institution associated with SIDBI |
| Term Loan Assistance for Renewable Energy (TLARE) by Indian Renewable Energy Development Agency (IREDA) | Loans for renewable energy projects, including green building projects | Developers and companies undertaking renewable energy projects, including green building projects | Apply through the Indian Renewable Energy Development Agency (IREDA) by submitting a project proposal and other relevant documents |
| HUDCO Niwas Loan Scheme by Housing and Urban Development Corporation Limited (HUDCO) | Loans for housing and urban infrastructure projects | Individuals, housing cooperatives, and private or public sector companies undertaking housing and urban infrastructure projects | Apply through the Housing and Urban Development Corporation Limited (HUDCO) by submitting a loan application with relevant documents |
| National Bank for Agriculture and Rural Development (NABARD) Rural Housing Loans | Loans for rural housing and real estate projects | Individuals, housing cooperatives, and companies undertaking rural housing and real estate projects | Apply through any bank or financial institution associated with NABARD or directly through NABARD, by submitting a loan application with relevant documents |
| Scheduled Tribes (ST) Entrepreneurs Refinance Scheme | Provides concessional loans for setting up new or expanding existing enterprises, including real estate ventures | Scheduled Tribe (ST) entrepreneurs setting up new enterprises or expanding existing ones in manufacturing or services, including real estate development | Apply through the National Scheduled Tribes Finance and Development Corporation (NSTFDC) or its affiliated state channelizing agencies |
| Industrial Infrastructure Upgradation Scheme (IIUS) | Loans for upgradation of industrial infrastructure, including real estate projects in industrial areas | Developers and companies undertaking industrial infrastructure projects, including real estate projects in industrial areas | Apply through the Department for Promotion of Industry and Internal Trade (DPIIT) by submitting a project proposal and other relevant documents |
| Land Purchase Loan Scheme by State Bank of India (SBI) | Loans for purchasing land for construction and real estate projects | Individuals, companies, and developers seeking to purchase land for construction and real estate projects | Apply through State Bank of India (SBI) by submitting a loan application with relevant documents |
| Real Estate Loan Scheme by Bank of Baroda | Loans for construction and real estate projects | Individuals, companies, and developers undertaking construction and real estate projects | Apply through Bank of Baroda by submitting a loan application with relevant documents |
| Industrial Development Loan Scheme by Punjab National Bank (PNB) | Loans for setting up or expanding industrial units, including real estate projects in industrial areas | Individuals, companies, and developers setting up or expanding industrial units, including real estate projects in industrial areas | Apply through Punjab National Bank (PNB) by submitting a loan application with relevant documents |
Affordable Housing Schemes
The Indian government has introduced various affordable housing schemes to address the growing demand for housing in the country, particularly among low-income and economically weaker sections of society. These schemes aim to provide financial assistance and support to make housing more accessible and affordable. In this section, we will discuss three major affordable housing schemes – Pradhan Mantri Awas Yojana (PMAY), Credit Linked Subsidy Scheme (CLSS), and Affordable Rental Housing Complexes (ARHC).
Pradhan Mantri Awas Yojana (PMAY)
The Pradhan Mantri Awas Yojana (PMAY) is a flagship initiative launched by the Indian government in 2015 to provide affordable housing to all by 2024. The scheme focuses on the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) in urban areas. PMAY comprises two components – PMAY (Urban) and PMAY (Gramin) – to cater to both urban and rural housing needs.
Under PMAY, beneficiaries can avail interest subsidies on housing loans, financial assistance for construction or enhancement of homes, and access to affordable housing units developed by public and private sector entities. The government also partners with state governments, urban local bodies, and private developers to implement the scheme.
Credit Linked Subsidy Scheme (CLSS)
The Credit Linked Subsidy Scheme (CLSS) is a part of the Pradhan Mantri Awas Yojana (PMAY) that aims to provide interest rate subsidies on home loans for the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG). Under CLSS, eligible beneficiaries can avail interest subsidies of up to 6.5% for a maximum loan tenure of 20 years.
The interest subsidy is directly credited to the borrower’s home loan account, thereby reducing the overall loan burden and making housing more affordable. To apply for CLSS, applicants must approach any of the primary lending institutions, such as banks, housing finance companies, and regional rural banks, which are associated with the scheme.
Affordable Rental Housing Complexes (ARHC)
The Affordable Rental Housing Complexes (ARHC) scheme was introduced in 2020 as a part of the government’s Atmanirbhar Bharat (Self-reliant India) initiative to address the housing needs of urban migrants and poor households. ARHC aims to provide affordable rental accommodation to workers engaged in various industries, including manufacturing, construction, and domestic work.
Under the ARHC scheme, the government partners with private and public sector entities to develop rental housing complexes. The government also encourages the conversion of existing vacant government-funded housing complexes into ARHCs. These complexes offer single or double-room units, dormitories, and shared facilities like kitchens and bathrooms. Beneficiaries are required to pay a pre-determined rent, which is considerably lower than market rates.
To summarize, these affordable housing schemes play a crucial role in bridging the housing gap in India, making it easier for economically weaker sections and low-income groups to secure a safe and affordable living space. By availing the benefits of these schemes, eligible individuals and families can take a significant step towards achieving their dream of owning or renting a home.
III.Real Estate Financing and Loan Schemes
In addition to affordable housing schemes, the Indian government has also introduced various real estate financing and loan schemes to support individuals, developers, and companies involved in real estate projects.
These schemes aim to provide easier access to credit and financial assistance for purchasing, constructing, or renovating properties. In this section, we will discuss three major real estate financing and loan schemes: Housing loans by public sector banks, Micro Units Development and Refinance Agency (MUDRA) loans, and the National Urban Livelihoods Mission (NULM) – Self Employment Programme (SEP).
Housing loans by public sector banks
Several public sector banks in India offer attractive housing loan schemes for individuals and developers. These loans are designed to finance the purchase, construction, or renovation of residential properties, including apartments, independent houses, and plots for construction. Housing loans by public sector banks come with competitive interest rates, flexible repayment tenures, and relatively low processing fees.
Some prominent public sector banks offering housing loans include the State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB). Eligibility criteria for these loans vary from bank to bank, but generally include factors such as age, income, employment status, and credit history. To apply, applicants must approach their preferred bank and submit a loan application along with the required documents.
Micro Units Development and Refinance Agency (MUDRA) Loans
The Micro Units Development and Refinance Agency (MUDRA) was launched by the Indian government in 2015 to provide financial assistance to micro and small enterprises, including those involved in real estate activities such as construction and renovation. MUDRA loans are offered under the Pradhan Mantri Mudra Yojana (PMMY) and are available in three categories: Shishu (loans up to INR 50,000), Kishore (loans from INR 50,000 to INR 5 lakh), and Tarun (loans from INR 5 lakh to INR 10 lakh).
MUDRA loans can be availed by individuals, proprietors, partnership firms, and private limited companies engaged in real estate-related activities. The loans can be used for purchasing equipment, hiring labor, or acquiring working capital. Applicants must approach any of the MUDRA-partnered financial institutions, such as banks, non-banking financial companies (NBFCs), and microfinance institutions (MFIs), to apply for a loan.
National Urban Livelihoods Mission (NULM) – Self Employment Programme (SEP)
The National Urban Livelihoods Mission (NULM) is a government initiative aimed at reducing poverty and vulnerability among urban poor households. The Self Employment Programme (SEP) under NULM focuses on providing financial assistance and skill development opportunities to urban poor individuals and groups, including those engaged in real estate activities like construction and maintenance.
Under the SEP, eligible beneficiaries can avail loans of up to INR 2 lakh for individual enterprises and up to INR 10 lakh for group enterprises. The loans come with a subsidized interest rate, and the repayment tenure may extend up to seven years. To apply for SEP loans, applicants must approach the urban local bodies or designated banks with their business plan and other relevant documents.
In conclusion, these real estate financing and loan schemes provide much-needed financial support to individuals and businesses involved in the real estate sector. By availing these loans and financial assistance, stakeholders can effectively manage their real estate projects and contribute to the growth and development of the industry in India.
- Infrastructure Development and Green Building Schemes
The Indian government has also introduced various schemes aimed at promoting infrastructure development and sustainable construction practices in the real estate sector. These initiatives focus on improving urban living conditions, upgrading basic infrastructure, and encouraging the adoption of green building technologies. In this section, we will discuss three major infrastructure development and green building schemes: Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and Term Loan Assistance for Renewable Energy (TLARE) by the Indian Renewable Energy Development Agency (IREDA).
Smart Cities Mission
Launched in 2015, the Smart Cities Mission is a flagship initiative by the Indian government that aims to develop 100 smart cities across the country. The mission focuses on enhancing the quality of life for urban citizens by improving infrastructure, promoting sustainable development, and harnessing digital technology for efficient governance.
Under the Smart Cities Mission, various real estate projects such as housing, commercial spaces, and public amenities are developed with an emphasis on sustainability, innovation, and technology. The mission encourages the adoption of green building practices, energy-efficient designs, and smart solutions for waste management, transportation, and public safety. Real estate developers, urban local bodies, and private sector partners collaborate to implement projects under the Smart Cities Mission.
Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is a government initiative launched in 2015 to improve the basic infrastructure and services in urban areas across India. The mission focuses on the development of water supply, sewerage systems, stormwater drainage, urban transport, and green spaces in more than 500 cities.
AMRUT aims to provide a conducive environment for the real estate sector by ensuring the availability of basic amenities and infrastructure. The mission also emphasizes the adoption of energy-efficient building designs and sustainable construction practices. Real estate developers and urban local bodies work together to implement projects under AMRUT.
Term Loan Assistance for Renewable Energy (TLARE) by IREDA
The Indian Renewable Energy Development Agency (IREDA) is a government-owned financing institution that promotes the development and deployment of renewable energy in the country. The Term Loan Assistance for Renewable Energy (TLARE) scheme by IREDA provides financial support to real estate developers and companies for the installation of renewable energy systems in their projects, such as solar panels, wind turbines, and biomass energy systems.
TLARE helps in promoting the adoption of green building practices and energy-efficient technologies in the real estate sector. By availing term loans under TLARE, developers can reduce their dependence on conventional energy sources, lower their carbon footprint, and contribute to a sustainable built environment. To apply for TLARE, real estate developers and companies need to approach IREDA with a detailed project report and other necessary documents.
In conclusion, these infrastructure development and green building schemes play a crucial role in shaping the future of the real estate sector in India. By participating in these initiatives, developers and stakeholders can contribute to the creation of sustainable, innovative, and resilient urban spaces, ultimately improving the quality of life for millions of people across the country.
- Specialized Schemes for Entrepreneurs and Marginalized Communities
The Indian government has also introduced specialized schemes to cater to the unique needs of entrepreneurs and marginalized communities involved in the real estate sector. These schemes aim to provide financial assistance, technical support, and other resources to promote inclusive growth and development in the industry. In this section, we will discuss two such schemes: the Scheduled Tribes (ST) Entrepreneurs Refinance Scheme and the National Bank for Agriculture and Rural Development (NABARD) Rural Housing Loans.
Scheduled Tribes (ST) Entrepreneurs Refinance Scheme
The Scheduled Tribes (ST) Entrepreneurs Refinance Scheme is an initiative by the National Scheduled Tribes Finance and Development Corporation (NSTFDC), a government-owned institution that provides financial assistance to ST entrepreneurs. The scheme aims to promote self-employment and income generation activities among Scheduled Tribes, including real estate ventures such as construction, property development, and housing projects.
Under the ST Entrepreneurs Refinance Scheme, eligible ST entrepreneurs can avail loans at a concessional interest rate for setting up or expanding their real estate ventures. The loans can be utilized for purchasing land, construction materials, equipment, and other project-related expenses. To apply for the scheme, ST entrepreneurs need to approach the NSTFDC or its state channelizing agencies with a detailed project report and other necessary documents.
National Bank for Agriculture and Rural Development (NABARD) Rural Housing Loans
The National Bank for Agriculture and Rural Development (NABARD) is a government-owned apex development bank that focuses on promoting sustainable rural development in India. NABARD offers Rural Housing Loans to support the construction and renovation of homes in rural areas, providing affordable housing solutions for economically weaker sections, low-income groups, and marginalized communities.
NABARD’s Rural Housing Loans are provided through various financial institutions, including Regional Rural Banks (RRBs), cooperative banks, and select commercial banks. The loans offer competitive interest rates, flexible repayment tenures, and low processing fees. Eligibility criteria for availing these loans generally include factors such as income, location of the property, and the applicant’s repayment capacity.
To apply for NABARD’s Rural Housing Loans, eligible beneficiaries must approach one of the participating financial institutions with their loan application and necessary documents. The loans can be used for constructing new houses, renovating existing ones, or extending existing housing units.
Tips for applying and availing subsidies and financial assistance
- Thorough research: Before applying for any government scheme or subsidy, conduct thorough research to understand the eligibility criteria, benefits, and application process. Visit the official government websites and guidelines for accurate and updated information.
- Check eligibility: Carefully review the eligibility criteria for each scheme and ensure that you meet all the requirements before applying. In case of any doubts, consult the concerned authorities or seek guidance from experts.
- Prepare a detailed project report: Most schemes require a detailed project report that outlines the objectives, scope, cost, and timeline of the project. Ensure that your report is well-researched, clear, and concise to improve your chances of approval
- Gather necessary documents: Keep all relevant documents, such as identity proof, address proof, income proof, and property papers, ready and organized before applying for a scheme or subsidy. This will help in avoiding any delays in the application process.
- Apply through the appropriate channel: Each scheme has a specific application process and channel, such as online portals, banks, or government offices. Make sure to apply through the correct channel and follow the prescribed application procedure.
- Seek expert guidance: If you are unsure about any aspect of a government scheme or subsidy, do not hesitate to seek guidance from professionals, such as financial advisors, real estate consultants, or government officials. If you are seeking a loan with a competitive interest rate, fast processing, and step-by-step assistance with the application process, contact Refer Loan.
- Monitor your application status: After submitting your application, regularly monitor its status through the designated tracking system or by contacting the concerned authorities. This will help you stay informed about the progress of your application and take any necessary actions in case of delays or issues.
- Maintain clear communication: During the application process, maintain clear communication with the concerned authorities and respond promptly to any queries or requests for additional information.
By following these tips and utilizing the available resources, you can improve your chances of successfully applying for and availing subsidies and financial assistance for your real estate projects in India.
Final Thoughts
Navigating the numerous government schemes and subsidies for the real estate industry can be a challenging task. Refer Loan is here to help you identify the best loan options available to suit your specific needs. With a deep understanding of the various government initiatives and loan products, Refer Loan can provide expert guidance and support throughout the application process. By partnering with Refer Loan, you can make well-informed decisions and secure the most suitable financial assistance for your real estate projects, ensuring a smoother journey towards realizing your property goals.