How to Avail Benefits under Indira Gandhi Awas Yojana for Your Home


Indira Gandhi Awas Yojana (IGAY) is a government scheme aimed at providing financial assistance to the underprivileged and economically weaker sections of the society in India. The scheme is intended to help these sections of society with a safe dwelling, and to promote housing development in the country.

Indira Gandhi Awas Yojana is in line with the overall objective of the Government of India’s “Housing for All” mission. The primary aim of this scheme is to provide financial assistance for the construction and maintenance of houses, and in doing so, to promote self-reliance among rural households. Explore competitive housing loan interest rates for your dream home. Compare options and secure the best rate today.

The scheme is particularly beneficial for the members of minority communities, scheduled tribes and castes, and families of migrant laborers residing in various parts of the country who are not able to afford housing through traditional home loan methods. In this article, we will explore how you can avail of the benefits of Indira Gandhi Awas Yojana for your home.

1. Eligibility Criteria

To avail the benefits of the Indira Gandhi Awas Yojana scheme, certain eligibility criteria must be met. The household must not own a pucca house in India, and applicants’ households must also meet certain income requirements. Income requirements vary depending on the area of residence, with rural families having lower income cut offs than urban families.

The income for an applicant in rural areas cannot exceed Rs. 1,20,000 annually, while the income for an applicant in urban areas must fall between Rs. 1,50,001 and Rs. 6,00,000 per annum. The scheme is also open to several minority communities, scheduled tribes and castes residing in India.

2. Procedure for Applying

The application to apply for Indira Gandhi Awas Yojana can be done through various modes, depending on the channel of application processing through which the bank is participating. Generally, the applicant shall present themselves, along with necessary documentation, to a local government office.

The application will be reviewed by the district or block level officer who will then recommend the application to the bank, who will then provide the loan. The applicant is required to demonstrate a willingness to fund at least 10% of the cost of construction using their own funds.

Upon successful completion of the documentation, the loan will be approved by the authority and the applicant shall begin construction.

3. Sanction Amount and Repayment

Under the Indira Gandhi Awas Yojana scheme, eligible applicants can avail of up to 100% of the construction costs, subject to a maximum limit. The maximum loan amount is Rs. 1,20,000 in rural areas, Rs. 1,50,000 in hilly areas, and Rs. 1,60,000 in urban areas. The loan carries an interest rate of 4%, which can be paid off over a period of up to 15 years.

The repayments can be made in the form of easy monthly installments (EMIs), as is common with any home loan. The interest rate is fixed for the term of the loan, meaning that the EMI for the scheme remains constant over time, allowing for easy budgeting.

4. Home Loan EMI Calculator and its Importance

Home loan EMI calculators can be an excellent tool when considering taking a home loan. It provides an estimate of the expected monthly payment to be made towards the loan and allows borrowers to plan their finances around it.

By inputting the sanction amount, interest rate, tenure, and processing fees of the Indira Gandhi Awas Yojana loan into a home loan EMI calculator, borrowers can determine how much they will need to pay each month so that they can plan accordingly to ensure they can afford to make the payment comfortably.

5. Home Finance and Housing Loan Interest Rates

The Indira Gandhi Awas Yojana loan scheme is a form of home finance, which is a type of financing that helps low-income families build a home. The scheme is different from other housing loans offered by banks and financial institutions. The scheme is exclusively for underprivileged sections of society, and the loan interest rates of 4% is among the lowest in the market of affordable housing finance.

Housing loan interest rates typically range from 6.80% to 9.10%, depending on the bank or financial institution’s offering. The interest rates for home loans vary depending on a variety of factors, including creditworthiness, loan amount, loan period, and processing fees.


The Indira Gandhi Awas Yojana scheme is a great way for economically weaker sections of society to own a safe and secure home. The scheme provides an affordable, low-interest-rate home loan, with flexible repayment options.

To avail of the benefits of this scheme, the applicant must be eligible by fulfilling the income requirements and not owning a pucca house. The applicant must also be ready to invest a minimum of 10% of the construction costs by themselves. The creditworthiness of the applicant is not relevant; however, they must adhere to the terms and conditions of the scheme.

Ensure that you use a home loan EMI calculator to understand the installments of the loan, keeping your financial planning in check. If you are an economically weaker section of society, the Indira Gandhi Awas Yojana scheme could be an excellent option to support you in securing a safe shelter.