Special Correspondent

Plea to National Housing Board and LIC

Puducherry: Vice-Chairman of the Pondicherry State Cooperative Housing Federation N. Manogarane has called upon the National Housing Board and the Life Insurance Corporation of India to increase the allocation to the federation to Rs.25 crore from Rs.10 crore so that it can meet the rising demand for housing loans.

In a release on Tuesday, Mr. Manogarane said he had brought to the notice of the participants in the ongoing conference organised by the National Cooperative Housing Federation, Rajasthan, and the Institute of Cooperative Management, Jaipur, that following an increasing migration of people to Puducherry, the demand for housing loans had been on the rise over the years. He had also pointed out that the rate of interest provided by private banks and institutions here was between 9 per cent and 9.5 per cent, whereas the interest levied by the societies ranged between 11 per cent and 11.5 per cent.

The NHB and the LIC could reduce interest rate by two per cent so that the societies could survive the competition from private banks. He wanted to restore the rebate of 0.25 per cent in the rate of interest to rural areas.