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Kerala Housing Board Housing Scheme: Benefits, Documents & Eligibility

By Tata Capital
19 December 2025
8 mins read
2150

Kerala State Housing Board: Overview & Key Functions

Kerala State Housing Board is a Kerala government agency that directs and plans housing initiatives. Under the Kerala State Housing Board Act (Act 19 of 1971), the Kerala Housing Department has the key purpose of executing further housing development and loan projects to address the housing requirements of people from all walks of life.

The Kerala Housing Board was established after the authorities in Kerala launched numerous programs to boost the state’s economy. As the state’s economy improved, so did Kerala’s contribution to society’s welfare. The headquarters of the Kerala Housing Board is based in Thiruvananthapuram. The Housing Board gives loans to those who are financially deprived.

Kerala Housing Board Loan Eligibility Criteria

Applicants must be Kerala state residents.
Identity documents, such as an Aadhaar Card, must be provided.
Must have a bank account and present passbook statements.
Applicants must have ration cards that list the BPL/APL categories.
Applicants must not possess any land or property inside the boundaries of Kerala.

Benefits of Kerala Housing Board Housing Scheme

The Kerala authority would provide financial support to houseless families with acreage to construct contemporary houses.
Under this scheme, low and middle-income families could buy properties at subsidised costs with subsidised home loan interest rates.
People who desire to build their endemic homes in Kerala would have no trouble getting a loan.
This idea will bring together modern company offices, retail stores, industries, and other amenities.
Furthermore, the plan will help build modern urban towns with roads, water, electricity, and savage services.

Also,read: Stamp Duty in Kerala

Kerala Government Housing Schemes: Grihasree, Suraksha & More

Kerala Home Department’s major goal is to undertake further housing development and lending programmes to meet the housing requirements of people from all walks of life. In the housing sector, the department serves as a nodal department. Kerala Housing Board and Kerala State Nirmithi Kendra are two of the department’s primary businesses.

Laksham Veedu Padhathi: The department provides financial aid to entities to reconstruct damaged twin and single residences. An entity in general, SC and ST categories are eligible for an endowment of seventy-five thousand and Rs.1.75 lakh, respectively, from the authority. The Kerala State Housing Board contributes 50% of the total, with the remaining funds coming from local authority departments.

Inventive Housing Program: Under the creative Government Housing Scheme in Kerala, it was recommended that residential tenements be assembled on authority acreage for displaced workers in the urban region who fall into the economically unsteady part. In the authority acreage accessible in Poojappura and Thrikkakara, 212 tenements have been assembled to date.

Tsunami Reconstruction Program: The board must operate as a nodal department to implement coastal housing and resettlement programs under this program (CHRP). As part of the program, houses have been assembled in districts such as Trivandrum, Malappuram, Kozhikode, Kannur, and Kasargod.

Suraksha Housing Scheme: This programme provides financial assistance to economically disadvantaged members of society. Those qualified for this assistance are chosen and provided financial assistance to build a house if they possess at least 2 cents of land. Each home has a price tag of Rs 30000. The board has suggested a new Suraksha programme, with each dwelling costing Rs 100,000. The board intends to build roughly 2000 residences under this scheme the following year.

Also,read: How to Apply for a Government Housing Scheme?

Kerala Housing Board Loan Types: EWS, LIG & MIG Schemes

The Kerala Housing Board offers home loans to a range of borrowers. These include the EWS, LIG, and MIG categories, defined by the Board and periodically revised based on annual income limits. This has been done under the Pradhan Mantri Awas Yojana (PMAY). We break them down below:

1. EWS: The housing board provides home loan incentives for those in the Economically Weaker Section (EWS) income category. This has been done to support affordable housing in the state.

2. Low Income Group (LIG): The next category is those who fall in the Low Income Group, catering to families with slightly higher incomes.

3. Middle Income Group (MIG): This category of families generally caters to families with moderate incomes seeking larger loan amounts and homes, as well as longer repayment tenures.

Under the PMAY scheme, housing grants of up to ₹3 lakh for new construction are offered for EWS households. ₹1.5 lakh for renovations on existing homes, as well as interest subsidies on home loans, are also provided.

Top-Up Loan Options for Existing Kerala Housing Board Borrowers

Kerala Housing Board’s home loans are generally provided to those in the EWS, LIG, or MIG categories. These loans can be used for home improvements, additions, repairs, or other related home expenses. Eligibility for housing board home loans varies. Generally, applicants must be residents of Kerala, and priority is often given to families with more dependents. Similarly, differently-abled individuals and widows may also get priority.

In some cases, families seeking loans or additional financing may be required to demonstrate their ability to repay. Put simply, they need to show creditworthiness by making timely EMI repayments, providing their overall income profile, and more.

It is also important to note that interest rates on top-up loans are typically slightly higher than the original home loan rate but remain lower than those on unsecured options such as personal loans. Repayment tenure may also be aligned with the existing loan or structured separately. For more information regarding home loan top-ups, contact the Kerala Housing Board.

Also,read: What is The Affordable Housing Criteria to be Eligible?

Tax Benefits on Kerala Housing Board Home Loans

To encourage home ownership, the Income Tax Act, 1961, provides multiple tax benefits for individuals purchasing or constructing a house, particularly when financing it through a home loan. These provisions help reduce the financial burden and make long-term repayment more manageable.

For example, under Section 80C, borrowers can claim a deduction on the principal portion of their home loan repayment. These can go up to ₹1.5 lakh per financial year and may include associated expenses, such as stamp duty and registration charges.

Additionally, Section 24(b) allows a deduction of up to ₹2 lakh annually on interest paid on home loans for self-occupied properties. For rented properties, the entire interest component may be claimed, subject to overall income tax rules.

First-time homebuyers can also benefit from Section 80EE, which provides an additional deduction on interest paid, further reducing the effective cost of borrowing. By leveraging these deductions, borrowers can help reduce the financial burden of owning a home, making it more affordable and sustainable over the long term.

Kerala Housing Board home loans may qualify for certain standard income tax benefits. For further clarification, remember to contact the Kerala Housing Board.

Also,read: Home Loan Schemes for Widows in India

Step-by-Step Application Process for Kerala Housing Board Loans

The Kerala Housing Board home loan application process is reasonably straightforward. We break it down below:

Visit the official Kerala Housing Board website to begin the application process for the Grihasree Housing Scheme.
Navigate to the section dedicated to Grihasree Housing Projects and select the relevant project link.
Carefully review the project details, including location, eligibility criteria, housing type, and cost structure.
Access the online form provided on the page.
Provide all required details accurately, including personal information, income, and housing requirements.
Upload the mandatory supporting documents, including proof of identity, income certificates, and address details, as specified.
Recheck the form and documents to ensure there are no errors or missing information.
Submit the completed application through the portal or as directed by the scheme guidelines.
Once submitted, the application is forwarded to the concerned authority office for verification and further processing.

Once your application has been submitted, it will be reviewed by the Housing Board, and all documents will be verified.

Also,read: Difference between PMAY Gramin and PMAY Urban

Documents Required for Kerala Housing Board Loan Application

To apply for a housing board home loan in Kerala, the following documents will be required:

Identity Proofs: Aadhaar card, PAN card, and recent passport-size photographs.
Address Proof: Utility bills, rental agreement, or other government-issued documents; bank statements may also be needed.
Income Documents: Latest salary slips, Form 16, and employment details (for salaried individuals); Income tax returns, business registration proof, and financial statements (for self-employed individuals). A family income certificate may also be necessary.
Additional Documents: Depending on the scheme type or applicant category. For example, you may need to provide your Ration card to confirm your APL or BPL category.

Keeping these documents ready and in order when applying for a Kerala Housing Board home loan can improve your chances of approval. Maintaining a good credit score, a strong repayment history, and other factors can help you secure better interest rates and subsidies. Income and salary slips may help determine which income category you fall into, thereby determining the subsidies you are eligible to receive.

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FAQs

When did the Kerala Housing Board come into being?

Kerala State Housing Board, abbreviated as KSHB, was established on March 5, 1971, after merging with the former City Improvement Trust.

What are the best property contribution locations in Kerala?

Trivandrum is home to some of Kerala's most noteworthy contributions. The country's capital, Kottayam, is one of the most serene and quickly rising real estate investment options.

Is it worthwhile to invest in acreage in Kerala?

Property is always appreciated since available acreage does not increase; property can be sold, rented, or entrusted out, and you can make excellent returns on your contribution.

What is the major goal of the Kerala Housing Board Scheme?

Kerala Housing Board Finance Limited has created a simple house loan for low-income persons with discounted interest rates. People in rural and urban places may now build their own homes using this home loan technology.

How long does the Kerala Housing Board loan application process take?

The housing board home loan application process typically takes up to a few weeks. It’s affected by document verification, eligibility checks, and the selected housing project or scheme.

Can I get a Kerala Housing Board loan if I already own property elsewhere?

Kerala Housing Board home loans are generally for those in economically weaker sections of society. Therefore, owning property already may affect your eligibility for home loans under specific KHB schemes.

What is the maximum loan amount I can get under the Kerala Housing Board scheme?

The maximum housing board home loan amount will depend on your income category, property cost, and scheme-specific limits set by the Kerala Housing Board.

Are there any prepayment charges for Kerala Housing Board loans?

Many housing loans allow partial or full prepayment with little or no penalty. However, it is crucial to contact the Kerala Housing Board for more information regarding prepayment.

How do I check the status of my Kerala Housing Board loan application?

You can track your housing board home loan application status by visiting the official Kerala Housing Board website. You can also contact the relevant housing board office.

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