While a home loan is a great way to purchase a house, some other ways too can offer you financial assistance to buy a house in India. Various bodies have been set up in the country that offers help on home purchases, particularly to the lower-income groups. The Tamil Nadu Housing Board is one such authority that looks after the housing needs of economically weaker classes and middle and high-income groups. Commonly known as the TN Housing Board today, the authority was formerly named the City Improvement Trust of Chennai before 1961.
Here is all that you need to know about the TN Housing Board Scheme that the authority offers and how you can use it:
What is the TNHB Scheme, and how does it work?
The TN Housing Board Scheme is responsible for constructing houses and auctioning them off at affordable rates. If you get selected in the draw of lots, you can purchase the house. Along with the construction, the board is also in charge of the houses’ maintenance and allotment. Houses under the TN Housing Board Scheme are sold at cost-effective prices, which can be paid over several years. You can also avail of a loan with low home loan interest rates to cover the house’s cost. Every property is priced as per the area it is situated in, but the cost remains affordable compared to other private builders.
The Housing Board also reserves some houses for defense personnel and government employees.
How can you avail of the TN Housing Board Scheme?
Here are the eligibility criteria for the scheme:
- You should be at least 21 years old.
- You should be a native of Tamil Nadu.
- You need to have a steady income.
- You should not own other property under another Tamil Nadu government scheme.
Apart from this, the loan eligibility in the case of a home loan will depend on your loan amount, tenure, income, age, and other factors.
How to apply for TN Housing Board Scheme?
You can follow the steps given below to apply to the scheme:
- You can check local and national newspapers for an announcement of new plots.
- Generally, the City Division Office issues the application form. The contact details for the same are mentioned in the advertisement.
- Fill up the form and pay the registration fee as specified in the advertisement via cash or a demand draft. This can be submitted along with the form at the respective division office.
- A draw of lots system is used to select the winners.
- You can then use a home loan EMI calculator to pick the right loan to buy the house.
To sum it up
The scheme follows a simple, straightforward, and quick process to help you purchase a house. However, make sure to keep your home loan documents ready so that you can move into your new house without any delays.