Given that India has been historically a populous and poor country, the need of proper housing for the refugees and villagers has been a focus of Government’s welfare schemes since the time of India’s independence. As a result, various welfare schemes like House Sites cumg Construction Assistance Scheme have been ongoing since the 1950s. However, it was only in the 1983 that a focussed fund for creation of housing for scheduled castes (SCs), scheduled tribes (STs) and freed bonded labour was set up under Rural Landless Employment Guarantee Programme (RLEGP).
The broad purpose of the scheme is to provide financial assistance to some of the weakest sections of society for them to upgrade or construct a house of respectable quality for their personal living.The vision of the government is to replace all temporary houses from Indian villages by 2017As per the 2011 budget, the total funds allocated for IAY have been set at ₹100 billion (US$1.4 billion) for construction of houses for BPL families with special focus on the Left Wing Extremist (LWE) districts.
The houses are allotted in the name of the woman or jointly between husband and wife. The construction of the houses is the sole responsibility of the beneficiary and engagement of contractors is strictly prohibited. Sanitary latrine and smokeless chullah are required to be constructed along with each IAY house for which additional financial assistance is provided from “Total Sanitation Campaign” and “Rajiv Gandhi Grameen Vidyutikaran Yojana” ( Which is now subsumed by Deen Dayal Upadhaya Gram Jyoti Yojana ) respectively.
IIFL Home Loans have been helping beneficiaries avail Credit linked Subsidy under Pradhan Mantri Awas Yojana across the country. Till 17 August 2017, the company has helped 4187 beneficiaries avail government subsidy. ICICI Bank is giving subsidised home loans to the people eligible for this scheme. AU Housing Finance Limited is also doing subsidy based funding under this scheme.