What Is the MHADA Lottery Scheme? Why Is It Beneficial for Homebuyers?

What Is the MHADA Lottery Scheme? Why Is It Beneficial for Homebuyers?

Aug 26, 2019, 7:37:02 PM Business

Mumbai is considered the economic hub of India. Besides being home to the movie industry, the city is a hot spot for business activities that affect the country as a whole. For these reasons, the housing market in Mumbai is considered the most expensive in the country. People of the low and middle-income groups can face financial difficulties to avail accommodation in this city.

However, the MHADA Pune lottery scheme is a government initiative that is allowing numerous individuals from the low and middle-income groups to own their own houses in Maharashtra. It is a lottery housing scheme that aims to build affordable homes and provide them to eligible applicants. The scheme has allotted around 2,593 apartments in its 2012 lottery. 

What Is the MHADA Scheme?

The state government launched the Maharashtra Housing and Area Development Authority scheme under the Maharashtra Housing and Area Development Act in 1976. The MHADA lottery scheme allows housing spaces in different areas each year. The housing project is aimed mainly towards two specific income groups.

They are:

  • Low Income Group (LIG) - Individuals who have a monthly income of Rs. 25,000 to Rs. 50,000 can apply under the low-income category.
  • Middle Income Group (MIG) – Individuals earning a sum of Rs. 50,000 to Rs. 75,000 in a month can apply under the middle-income category. 

The houses developed under this scheme are provided for sale at a subsidized rate. The price tag on these homes generally lies between 30% - 70% of the actual price of a property. Considering the cost of living spaces in Mumbai, the amount of subsidy is unmatched by any other affordable housing scheme in the country. Beneficiaries for this scheme must fulfill specific eligibility criteria to be able to get registered for the lottery.   

Importance of Home Loan in Mumbai for MHADA

The high demand for accommodation has inflated the real estate sector of Mumbai. The property prices in the city are the highest when compared to other metropolitan cities of the country.

Housing credit has helped numerous of these individuals to own their own houses. If you are planning to apply for MHADA scheme, you must take advantage of a home loan. You can use an online loan EMI calculator to ascertain your monthly EMI obligations and plan accordingly.    

MHADA is a high demand scheme. The property rate it offers in Mumbai is unparalleled. According to reports, 1.53 Lakh applications were received for only 972 housing units.

Facilitating MHADA is affordable home loans under the PMAY. There are several key benefits of Pradhan Mantri Awas Yojana, subsidies on home loan interest rates being one of them.

MHADA Lottery Eligibility Criteria

Listed below are a few eligibility criteria that applicants must fulfill. If not met, they will be deemed unfit for allotment under MHADA scheme.

  • Applicant must be of 18 years age and above.
  • They should be a citizen of the state of Maharashtra. If not born in the state, they must have a domicile certificate proving that he/she has lived in the state for at least 15 years.
  • The applicant must possess an Aadhaar card.
  • The applicant or any of their family members must not own a house that had previously been allotted under MHADA scheme.
  • They must apply according to their income group. These groups are the Low Income Group (LIG) and Middle Income Group (MIG).

Make sure to fulfill the eligibility criteria before applying for the lottery. Also, have a clear idea about the documents required for a home loan approval before applying.

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