Rs 2 lakh interest-free loan for PMAY-U beneficiaries approved in J-K

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Jammu, Mar 14 (PTI) The Jammu and Kashmir administration would provide interest-free loans of up to Rs 2 lakh to the urban homeless economically weaker section beneficiaries under the beneficiary led construction (BLC) component of the Pradhan Mantri Awas Yojna-Urban (PMAY-U), an official said on Sunday.

The approval to the proposal forwarded by the Housing and Urban Development Department was given by the administrative council, which met here under the chairmanship of Lieutenant Governor Manoj Sinha, the official.

He said the beneficiaries under BLC component of PMAY (U) have experienced the difficulty in mobilising their contribution as they come from economic weaker sections and have to contribute higher share as compared to other states and union territories, as a result of which the construction of dwelling units under this component of PMAY(U) could not achieve the desired targets.

The beneficiaries of this component have demanded enhancement of assistance in their favour so that they can complete their houses within the targeted date of the mission, the spokesperson said.

“In view of practical difficulties faced by the beneficiaries in arranging financial resources, the government agreed to provide interest subsidy to all the eligible beneficiaries,” he said.

The interest-free loans would be an additional benefit, over and above the financial assistance of Rs 1.66 lakh which is already being provided to the beneficiaries under the PMAY-U and with this the beneficiaries can now avail Rs 3.66 lakh for construction of their dwelling units.

Earlier, the administration had also provided 25 per cent as mobilisation advance to the beneficiaries under this component, so as to ensure the commencement of construction work of their dwelling units.

The tenure of the BLC interest-free loan has been fixed at 10 years and includes a moratorium of six months, repayable through monthly installments of Rs 2,500, the spokesperson said, adding at present the scheme would benefit 41,992 beneficiaries.

“The decision is a part of the government's resolve to provide affordable housing to the economically weaker section of society and provides supplementary financial assistance so as to realise the vision of the prime minister by providing housing for all by 2022,” he said. PTI TAS RHL