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Affordable Housing Schemes in Bangalore


03, December 2025

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Bangalore, India's tech hub, continues to attract professionals from all over the country due to its job opportunities and vibrant lifestyle. However, one of the significant challenges residents face is the rising cost of housing.

The government and various private developers have introduced several affordable housing schemes in Bangalore to address this. These schemes aim to make homeownership a reality for low, middle, and even economically weaker sections (EWS).

In this blog, we will explore key public housing schemes, the meaning of MIG and LIG in housing, and various government initiatives available to homebuyers.

Affordable Housing Schemes in Bangalore: Key Features

Bangalore offers a range of affordable housing schemes catering to different income segments. Here are some key features of these schemes:

Scheme Name Target Audience Key Features

Scheme Name

Target Audience

Key Features

Pradhan Mantri Awas Yojana (PMAY)

Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG)

Interest subsidies on home loans, financial assistance for house construction, slum redevelopment

Karnataka Housing Board (KHB) Scheme

EWS, LIG, MIG

Subsidized housing projects, financial aid for home buyers, well-planned residential areas

BDA (Bangalore Development Authority) Housing Schemes

All income categories

Affordable plots, flats, and housing complexes in well-developed areas of Bangalore

State Government Subsidy Schemes

LIG and MIG

Low-interest rates, affordable home loan options for first-time buyers

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Understanding Housing Categories: MIG and LIG

Two common terms that often come up in the context of affordable housing are MIG and LIG. Let’s understand these terms and what they mean for potential homebuyers:

  1. MIG (Middle Income Group): This refers to individuals or families whose income falls above the LIG threshold but below the high-income category. MIGs are eligible for subsidies and financial assistance through government schemes to purchase homes at affordable rates.

  2. LIG (low-income group): LIG refers to individuals or families whose income is at the lower end of the scale. These families often find it difficult to afford homes in the city’s growing real estate market. The government offers specific schemes and interest rate subsidies to help LIG families own homes.

Public Housing Scheme in Bangalore: A Lifeline for Homebuyers

The public housing scheme in Bangalore plays a pivotal role in providing affordable housing to citizens. Various initiatives by the Karnataka government, in collaboration with central government schemes, have made it possible for people from the economically weaker sections and low-income groups to own a house.

For instance, the Karnataka Housing Board (KHB) has been instrumental in providing affordable houses for LIG and MIG categories in several parts of the city. These schemes offer:

  1. Affordable prices for newly constructed flats and houses

  2. Subsidized loans with lower interest rates

  3. Basic infrastructure such as water, electricity, and sanitation facilities

Additionally, Bangalore Development Authority (BDA) also offers residential plots and flats under its various housing schemes, making homeownership easier for middle- and low-income groups.

Key Features of Affordable Housing in Bangalore

Bangalore’s affordable housing schemes come with several features that cater to different needs of the homebuyers:

Feature

Description

Subsidized Loans

Affordable home loan options with reduced interest rates under schemes like PMAY.

Developed Infrastructure

New housing projects are well-planned with access to water, electricity, roads, and public transport.

Financial Assistance

Direct financial support and subsidies for purchasing or building a home.

Affordable Pricing

Housing projects are available at rates that are significantly lower than market prices, thanks to government initiatives.

Easy Repayment Options

Flexible payment plans and low EMI options make it easier for homebuyers to afford homes.

Urban Housing Schemes in India: A National Focus

The government of India has also woken up to the reality that there is a demand for affordable homes in urban settings. The Affordable Housing Scheme in India attempts to address the increasing need for housing stock, especially in urban areas, through the provision of finance and the development of new compounds.

Some important urban housing schemes include:

  1. Prime Minister grants accessible housing mission (PMAY)—offers credit-linked subsidies and concessional rates on home loans for EWS, LIG, & MIG household categories.

  2. Affordable Housing Fund: A fund established by the central government to aid the construction of more affordable houses in the country.

  3. Pradhan Mantri Awas Yojana—Awaasabadal 2022: A program of countrywide construction of dwelling units reserved for PW-low and middle-income groups.

MIG and LIG: Understanding Housing Categories

For a better understanding of the housing schemes, it is crucial to know the income classifications:

Category

Income Range (Per Year)

Eligible Schemes

EWS (Economically Weaker Sections)

Up to ₹3 Lakh

PMAY, KHB, and BDA schemes offering homes at highly subsidized rates

LIG (Low-Income Group)

₹3 Lakh to ₹6 Lakh

PMAY, KHB schemes with interest subsidies and lower prices

MIG (Middle-Income Group)

₹6 Lakh to ₹18 Lakh

MIG interest subvention under PMAY, KHB, and BDA housing projects

Housing Schemes Open for the Recognition of the General public

The Indian government has several government schemes for the purchase of the house that extend help to the home buyer who intends to use it for the first time. These schemes are targeted at low- to middle-income earners and are intended to assist people in owning homes.

Key Government Schemes Include:

• Pradhan Mantri Awas Yojana (PMAY): Home loan SHG can provide an interest subsidy of ₹2,67,000 for home loans under different categories.

• Interest Subvention Scheme: Gives interest rate subvention for home loans to LIG and MIG purchasing homes.

• Subsidized Home Loans: Lower home loan interest rates under different state and centrally sponsored housing loan schemes.

Conclusion

The numbers are escalating with the progression of urbanism and the employment sector in Bangalore. But, living standard low-income group and middle-income group housing finance schemes are enabling the EWS, LIG, and MIG families to own homes.

Government trades such as the Pradhan Mantri Awas Yojana (PMAY), KHK Housing Scheme, and BDA Housing Schemes are constantly pressing the attempt to abolish the housing deficit. Knowledge of simple terms such as MIG meaning in housing and LIG housing meaning are some of the important criteria that should be understood to ease oneself when dealing with such schemes to acquire affordable houses.

Recent development, government support, easy financing facilities, and affordable payment systems make home ownership in Bangalore easier.

For instance, if you are serious about purchasing a house in Bangalore, you should look at these public housing schemes and government scheme incentives as your first step to owning a house!

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