Affordable housing has become a major focus area for both central and state governments in India. In Tamil Nadu, homebuyers often come across three key schemes: Pradhan Mantri Awas Yojana (PMAY), Tamil Nadu Housing Board (TNHB), and Tamil Nadu Urban Habitat Development Board (TNUHDB).
Each scheme serves a different segment of the population. Let’s explore them in depth.
1. Pradhan Mantri Awas Yojana – Urban (PMAY-U)
Purpose:
To enable every family to own a pucca house with basic facilities by 2025.
Target Beneficiaries:
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EWS (Economically Weaker Section) – income up to ?3 lakh/year
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LIG (Lower Income Group) – income ?3–6 lakh/year
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MIG-I & MIG-II (Middle Income Groups) – income ?6–12 lakh/year and ?12–18 lakh/year respectively
Key Benefits:
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Credit Linked Subsidy Scheme (CLSS):
Interest subsidy on housing loans:-
Up to 6.5% interest subsidy
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Maximum subsidy: ?2.67 lakh (credited to your loan)
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Can be used for:
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New home purchase
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Construction
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Enhancement of an existing house
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Only for first-time homebuyers with no pucca house
How to Apply:
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Apply via bank or online portal: https://pmaymis.gov.in
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Loan should be taken from a bank/HFC registered under PMAY
Advantages:
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Big savings on EMI
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Flexible – you can buy any RERA-approved property
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No involvement in allotment delays
Limitations:
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Must take a home loan
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Only available once per family
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Subsidy is time-bound and scheme may phase out
Visit: https://pmay-urban.gov.in/
2. Tamil Nadu Housing Board (TNHB)
Purpose:
To construct and sell affordable houses to all income groups in Tamil Nadu – including HIG, MIG, LIG, and EWS.
Target Beneficiaries:
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Anyone residing in Tamil Nadu can apply
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Specific units reserved for EWS/LIG segments
What It Offers:
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Apartments, plots, and individual houses
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Properties in well-connected areas: KK Nagar, Sholinganallur, Ambattur, Coimbatore, Trichy, Madurai, Hosur, etc.
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Usually includes civic infrastructure: roads, water, drainage, parks
Pricing:
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Cost-based pricing (not speculative like private developers)
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Flats typically priced below market value due to non-profit model
How It Works:
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Projects announced by TNHB
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Applications invited through lottery system
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Payment is done in stages – construction-linked or fixed schedule
Advantages:
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Government quality control
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Transparent process
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Safer investment and resale value in prime locations
Limitations:
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Limited availability
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Lottery-based allotment (not guaranteed)
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Slower delivery in some projects
Visit: https://tnhb.tn.gov.in/
3. Tamil Nadu Urban Habitat Development Board (TNUHDB)
Purpose:
To provide free or highly subsidised homes for urban poor/slum dwellers through rehabilitation and resettlement.
? Target Beneficiaries:
Families living in slums or informal settlements
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Evicted or displaced residents due to government projects
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Household income usually below ?3 lakh/year
What It Offers:
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Free or subsidised flats in multi-storey buildings
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Located in resettlement zones like Perumbakkam, Semmancheri, Guduvanchery
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Basic amenities like schools, community halls, drainage, water
Project Types:
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In-situ development (upgrading existing slum areas)
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Relocation (evicted people moved to new homes)
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Public-private partnership (PPP) models
How It Works:
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No public applications – selection is survey-based
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Coordination with ULBs (urban local bodies) and PMAY
Advantages:
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No cost or minimal payment required
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Secure shelter with basic needs
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Social welfare focus – especially for women, senior citizens, and disabled persons
Limitations:
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Not for general public or middle-income groups
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Often located on the outskirts
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Rehabilitation challenges (jobs, schooling, etc.)
Visit: https://tnuhdb.tn.gov.in/
Comparison Table: PMAY vs TNHB vs TNUHDB
| Feature | PMAY-U | TNHB | TNUHDB |
|---|---|---|---|
| Main Goal | Subsidy for first-time homebuyers | Build & sell affordable homes | Resettlement & housing for slum dwellers |
| Who Can Apply | First-time buyers with loan | General public (with income category) | Slum dwellers, displaced persons |
| Property Type | Any approved project/home | TNHB-built flats/houses/plots | Govt-built apartments in colonies |
| Cost | Buyer’s cost minus subsidy | Priced lower than private builders | Free or very low cost |
| Loan Required | Yes (subsidy only on loans) | Optional | Usually no |
| Locations in Chennai | Any RERA-approved project | Eg: KK Nagar, Sholinganallur, Ambattur | Eg: Perumbakkam, Semmancheri |
| Mode of Application | Bank or online | Lottery system | Through govt survey |
| Best For | EMI-paying working class families | Mid-income buyers seeking stability | Below Poverty Line families |
Which Scheme is Right for You?
| Situation | Recommended Scheme |
|---|---|
| You have no home and want to buy with a loan | PMAY (CLSS) |
| You want to buy a government-built home directly | TNHB |
| You live in a slum and are being relocated | TNUHDB |
| You are a middle-class investor seeking a safe project | TNHB |
| You are renting but ready to buy with subsidy | PMAY |
Each scheme addresses a different income segment and offers different benefits. If you're a salaried employee planning your first home, PMAY is a powerful tool to reduce loan burden. If you want a stable, long-term property from a trustworthy source, TNHB is a great option. For the most economically vulnerable citizens, TNUHDB ensures a dignified life with secure housing.
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