HOUSING GRANTS – India

House is the basic need of a person to live in. It is one of the main living factor for every one. The house may be of different types but every wants to have a well designed house where he and his family can have shelter for peace and wealth.  For everybody it is not possible to experience the comfort of a sweet home. The main reason  is lack of finance. A person then wonders around to get some assistance to build a home. Here comes the role of housing grants by different agencies.

Though it is necessary to get a housing loan/grant for a needy person who wants to construct a house, but there are many factors that should be kept in mind while going for a housing loan. Never make a hasty decision to get a housing loan, it could prove very costly in later years.

1. Always ask for legal documents like certificate of incorporation/registration before availing a grant from a non government farm/body for house building. There are many agencies which are not regulated by government directives to provide loan and some are a fraud agencies. They will give you fraud checks and collect all PDCs at the time of sanctions. They will ask more installment amounts in first month for easy cash earning, by the time you come to know the fact they will disappear.
2. Always compare the interest rate. Even a half percent different in interest rate makes a great different in total amount. So before applying to a company, please collect data from internet or other sources.
3. Try to avoid mortgaging the house or properties. It will be legal hurdle for you in case of any changing plan.
4. Go for the grants by the agencies which also offer insurance of the house free of cost with the loan. It will be beneficial for you.
5. It is advisable to opt for a floating interest rate for housing loan.
6. If the grant comes in the form of assistance then never delay in accepting the offer as there are many candidates waiting for the same.

Agencies offering financial grants as assistance (for free) There are many organizations and government bodies that offer free housing assistance to the people of lower income group (LIG) and Economically Weaker Section of the society. They also offer free housing to the widow and single aged women.

1. Some agencies are: Government of India, Ministry Rural Development and Panchayat Raj under the scheme ‘Indira Awas Yojona’ . It provides small house to the people living below poverty level and widows. There is also the option to provide free electricity to these houses under ‘Rajiv Gandhi Rural Electrification Scheme’. Details criteria can be availed from the concerned authority.
2. The village Panchayat also gets funds time to time that are to be allocate to the poor people only. It is a state government grant free of cost.
3. Many housing boards and area development authority allocate housing grants as loan.
4. Banks are the main and largest source for housing grants. Please compare loan scheme of different banks before accepting one.