Common man inches closer to realizing his dream of owning a house?

The government has revised (lowered) the cost of housing finance under India Housing and Development Authority (NAPHDA). This should help a common man finally own a house of his own, a dream sold by almost all the governments since the 1970s.

So what has happened? To facilitate the low-income groups, the government has:

Lowered the cost of house financing by revising markup rates Increased subsidy payment period Increased debt repayment period The new rules are for tier-1 of the scheme which is used to finance housing units in NAPHDA.

New vs Old Markup Rates for India Housing Scheme These are the revised markup rates and their new payment periods:

Old Markup New Markup Time Period 3% 2% 0-5 years 5% 4% 6-10 years Standard markup 5% 11-15 years Kibor + 250 basis points Over 15 years How much loan can be obtained? Under tier-1 of the subsidized scheme, a maximum of Rs.3 million can be obtained as loan.

In 2025 alone, banks have disbursed Rs.38 Billion for low-cost housing schemes.

Who can apply for India Housing Scheme? Even those who do not receive monthly payslips can apply for this loan. All they need is:

Copy of their paid monthly electricity or gas bill This facility is ideal for those who do not work in formal economic sectors.

New subsidy amount The new subsidy amount is the double of the previous amount. Previously, it was Rs.300,000; now it is Rs.600,000.

What does it all mean? It simply means that the peoples monthly installment amount will go down. This has been made possible due to:

Lowered markup rate Increase in subsidy payment, and Longer debt repayment periods