A house is a fundamental need for any person, irrespective of social class and poverty. Hence, the Indian government has introduced different housing schemes to ensure every Indian can have a safe and affordable house. These housing schemes are specially customised to satisfy various requirements of Low-Income Groups (LIG), Middle-Income Groups (MIG), and High-Income Groups (HIG). Are you wondering what all these are? Read today’s Brick & Bolt blog to understand more about LIG, MIG, and HIG Housing Schemes in India.
Overview of LIG, MIG, and HIG Housing Schemes in India
Government housing schemes are mainly created to bridge the housing gap in India, which is crucial for social stability and economic development. The major features of India’s housing schemes are as follows:
- Housing Affordability: Most housing schemes aim to make homeownership accessible to all, including low- and middle-income groups, by giving subsidized interest rates and financial assistance.
- CLSS (Credit Linked Subsidy Scheme): CLSS is a component of Pradhan Mantri Awas Yojana (PMAY). It provides direct interest subsidies on home loans to suitable individuals based on their income.
- Urban Development Initiatives: Government schemes like Basic Services to Urban Poor (BSUP) and Rajiv Awas Yojana are used to improve housing in slums and provide essential facilities in cities.
- Public-Private Partnerships (PPPs): The government enables private sector participation in housing development via land allocation, regulatory support, and incentives to construct affordable housing projects.
- State-specific Programs: Along with national initiatives, state-specific programs are crucial in catering to local housing needs. For example, Maharashtra Housing and Area Development Authority (MHADA), Ashraya Yojana, Gruha Bhagya Scheme, Tamil Nadu Slum Clearance Board (TNSCB), etc.
What is LIG (Low-Income Group) Housing?
You can understand LIG as a short form of a Low-Income Group. They have an annual gross income of Rs. 3 lakhs to Rs. 6 lakhs. LIG housing commonly includes single units in multi-story buildings or a 60 sqm standalone unit.
This low-income group housing offers units planned with basic facilities like bathrooms, electricity, and water supply to ensure a satisfactory living standard. Also, under the Pradhan Mantri Awas Yojana (PMAY), people in the Low-Income Group (LIG) can get help buying or building a house. They can receive a subsidy (financial support) and pay a lower interest rate on their home loan—as low as 6.5%—through the Credit Linked Subsidy Scheme (CLSS).
Who Qualifies for LIG Housing?
To get this Low-Income Group (LIG) housing, you need to qualify for the following criteria:
- Your annual household income should be between ₹3 lakh and ₹6 lakh.
- Neither you (the applicant) nor your spouse or unmarried children should own a pucca house (a durable and permanent structure) in India.
- You (the applicant) should never have previously benefited from any other government housing scheme.
- The maximum carpet area of your land property is 60 square meters.
- You need to provide a self-declaration of income and property details.
There are still challenges in the LIG housing scheme, such as limited availability of houses, poor infrastructure in faraway areas, and delays in construction work.
What is MIG (Middle-Income Group) Housing?
As per the Ministry of Housing and Urban Affairs, the Middle-Income Group (MIG) is classified into two types based on their annual income: MIG-I and MIG-II.
- MIG-I are individuals with an annual family income between Rs. 6 lakhs and Rs. 12 lakhs. Commonly, this category will get residences with a carpet area of up to 90 square meters.
- MIG-II includes individuals with annual family incomes between Rs. 12 lakhs and Rs. 18 lakhs. The carpet area for these residence units commonly extends to up to 110 square meters.
MIG housing offers better housing than LIG, with benefits such as firefighting equipment and sports courts. These houses are slightly more expensive than LIG houses. These amenities suit the lifestyles of middle-income families.
The Credit Linked Subsidy Scheme (CLSS) for Middle-Income Group (MIG) covers two income categories:
MIG-I: Annual income between ₹6,00,001 and ₹12,00,000
Interest subsidy: 4% on loan amounts up to ₹9 lakh
MIG-II: Annual income between ₹12,00,001 and ₹18,00,000
Interest subsidy: 3% on loan amounts up to ₹12 lakh
The interest subsidy is calculated at a Net Present Value (NPV) of 9% over a maximum loan tenure of 20 years or the actual tenure, whichever is shorter.
Additional Housing Benefits for MIG Families
- Low-interest housing loans under PMAY and CLSS schemes.
- Affordable rental solutions through the Affordable Rental Housing Complexes (ARHC) scheme for urban workers.
- State-level housing policies that offer extra subsidies and financial aid.
- Special schemes for first-time homebuyers to simplify the process of homeownership.
Who Qualifies for MIG Housing?
- The annual income of the family should be between 6 to 18 lakhs.
- The family should not own a house in India.
- The family must not have received benefits from any other government housing scheme in the past.
- The maximum carpet area is 90 square meters for MIG-I and 110 square meters for MIG-II.
What is HIG (High-Income Group) ?
The High-Income Group (HIG) is the families that have annual family incomes of more than Rs. 18 lakhs. There is no specific government scheme for this group. Instead, HIG is a classification used in various housing initiatives.
An example of housing initiatives for HIG is the Delhi Development Authority (DDA) Housing Scheme:
Eligibility: Applicants with annual incomes above ₹18 lakhs. HIG families can get a 25% discount only if they are
- Women
- War Widows
- Ex-Servicemen and Recipients of Gallantry and Arjuna Awards Persons with Disabilities (Divyangjan)
- Persons belonging to SC/ST Category
Flats include 2BHK and 3BHK units with amenities.
Comparison of LIG and MIG Housing Schemes Offerings
| Particulars | LIG (Low-Income Group) | MIG (Middle-Income Group) |
| Annual Income | ₹3 lakh to ₹6 lakh | ₹6 lakh to ₹12 lakh (MIG-I)₹12 lakh to ₹18 lakh (MIG-II) |
| Carpet Area | Up to 60 sqm | Up to 90 sqm (MIG-I)Up to 110 sqm (MIG-II) |
| Housing Type | Single units in multi-story buildings or standalone units | Moderately sized flats with better amenities |
| Amenities | Basic facilities: bathrooms, electricity, water supply | Moderate facilities: firefighting equipment, sports courts |
| Subsidy under PMAY | 6.5% interest subsidy under CLSS | 4% for MIG-I loans up to ₹9 lakh3% for MIG-II loans up to ₹12 lakh |
| Loan Tenure | Up to 20 years | Up to 20 years |
| Eligibility Criteria | – Annual income between ₹3 lakh and ₹6 lakh- No ownership of pucca house- Not benefited from other schemes- Maximum carpet area: 60 sqm- Self-declaration of income and property details | – Annual income between ₹6 lakh and ₹18 lakh- No ownership of pucca house- Not benefited from other schemes- Carpet area limits: 90 sqm (MIG-I), 110 sqm (MIG-II) |
| Challenges | Limited availability, poor infrastructure in remote areas, delays in construction | No subsidy after 2021 |
How to Apply for Government Housing Schemes
The application process for government housing schemes in India becomes an easy process. As each scheme will have online portals, you need to follow the following steps to apply:
Step 1: Determine Eligibility
The initial step is to identify your category based on income. Consider the above income range and find your eligibility for the respective scheme.
Step 2: Gather Documents
Keep all necessary documents handy to fill out the online application. Commonly, you need to have identity proof (Aadhaar card, voter ID), income proof (salary slips, income tax returns), address proof (utility bills), and property documents, if applicable.
Step 3: Application Process
After gathering all necessary documents, go to the online portal or offline at Common Service Centers (CSCs).
For online applications, fill in the necessary details and upload the required documents. For offline applications, download the form, fill it out, and submit it along with the documents at a CSC.
Challenges in Government Housing Schemes
The government intends to provide benefits and reduce the burden for people intending to obtain a house. However, there are numerous difficulties in implementing or taking benefits, such as:
- Due to land acquisition and funding problems, the project completion can take more time than expected, causing delays.
- Not everyone will have knowledge about subsidy programs.
- Affordable, low-budget houses often have quality problems.
- Slow adoption of rental housing schemes by private developers.
The government is increasing transparency, digitalising applications, and offering more financial incentives for timely project completion to improve outcomes.
Government housing schemes help people afford homes by offering financial support. The government provides subsidies, low-interest loans, rental housing, and tax benefits. Programs like PMAY, CLSS, and ARHC help people buy or rent homes. It’s your responsibility to gain the benefits.
Hemali Patel