What are the affordable housing schemes

3 min read

What are the affordable housing schemes

There are various housing schemes in place which makes it easier for us to own property in our name. When it comes to the MHADA, the housing schemes are affordable and are targeted for all income groups. So, if you want to own a home for yourself and your family, then you can try out your luck with MHADA lottery!

To begin with, we need to first understand what the MHADA is all about. It stands for the Maharashtra Housing and Area Development Authority. Initially known as the Bombay Housing Board, it was set up in 1948. It then became the MHADA in 1977 and it undertakes the task of building houses and properties of 7 areas namely, Mumbai, Amravati, Pune, Nashik, Aurangabad, Nagpur and Konkan.


Of the many responsibilities that this body undertakes, the MHADA Housing Scheme is something that a lot of people benefit from. If you are wondering how that happens, then consider the following things:

Owning a property of your own is huge security – financially as well as in terms of investment.

However, the sky-high prices of properties make it very difficult for people to own one. This is where the MHADA comes in with its schemes. They offer houses at extremely pocket-friendly and affordable rates, which make it easier for everyone to own a home.

Homes for all income groups

One of the biggest advantages of the affordable housing schemes in India like the ones being offered by the MHADA is that everyone can own a house under them. 

Those who belong to the lower economic strata, those in the lower-income group and middle-income group can also own properties under this scheme. If you belong to the higher income group, you can own property under this scheme too!

How does it play out? It depends on the application process and the allotment of the property.

So while people of different income groups can own properties under this scheme, there is a very specific process to go about it. To begin with, you will be allotted properties based on your income group. There are different types of apartments and houses available under the MHADA Housing Projects. Let’s take a look at the income bracket division:

  • If your income is between Rs.25,000/- to Rs.50,000/- per month, then you will fall under the category of LIG apartments.
  • If your income is between Rs.50,0001/- to Rs.75,000/- per month, then you will fall under the category of MIG apartments.
  • If your income is above Rs.75,000/- per month, then you will fall under the category of HIG apartments.

It is crucial to remember here that you have to be a salaried person in the first place to be eligible under this scheme.

Segregation in the application process

This segregation based on income group starts right at the application process, which is again one of the main reasons as to why it is so affordable. The MHADA Lottery Scheme which is conducted online has a fairly simple online application process and it is during this process that one gets to segregate based on income groups.

If you visit the official website of the MHADA at https://mhada.gov.in/en you will see that after creating an account, you will have to fill out an application form. While you are filling it out, you will have to select the type of property that you are applying for, based on the income bracket given above. If you fall within the MIG group, then you will not be able to apply for LIG apartments. You will need to provide your employment details too to show that you are salaried and what your salary per month is.

It is also important to remember here that when you are applying, you will have to pay token money for your application to be considered and for you to register to the lottery. So, make sure that you have that amount ready in handy as well.

The price range of properties

It is also important to bear in mind that this is a Low-cost affordable housing scheme but not a free one. So, if you win the lottery and you do get an apartment allotted to your name, there will be a token sum of money that you will have to pay to claim ownership. 

Location of projects under MHADA

According to the data released by the MHADA in 2019, people from the lower economic section and LIGs secured apartments at a cost as affordable as Rs. 20-14 Lakh whereas there were apartment prices which went up to Rs. 5.8 Crores. Thus if you are thinking of applying under this scheme then you have to be prepared to shell out cash, not as much as you would have to, to buy a property of the same value, but you will need to money to purchase it nonetheless.


  1. What documents will I need?

To apply, you will have to make sure that you provide relevant documents like PAN card, Aadhaar card, Passport, your Domicile Certificate, Birth Certificate, Voter ID, Driver’s license(if you have any) and even your school leaving certificate.

  1. Is there an age bar?

To be eligible you have to be 18 years and above.

  1. What happens after I get selected in the lottery?

If in the lottery, you end up getting an apartment to your name, you will have to provide relevant documents and funds to claim it to your name.

The MHADA scheme is indeed a profitable and affordable one. So, if you want to own a home, you can try this one out!

Also Read : Government Housing Scheme in India 2020