Dharmendra Pratap Yadav, Managing Director of Tamil Nadu Housing Board, has appealed to bankers in Thanjavur, Tiruvarur, Nagapattinam and Ariyalur districts to advance loans under the Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) to help poor people in urban areas to build houses.
Speaking at a meeting of bankers from the above districts, Municipal commissioners, Executive officers of Town panchayats to explain about the scheme, Mr. Yadav said that housing was a major component in urban development.
Tamil Nadu is a highly urbanised state. Forty five per cent of the people live in urban areas. If housing is provided to poor people in these areas, it will help in improving the environment also. “Bankers need not be sceptical about providing loans to poor people. They are the most dependent people and they will certainly repay the loan. Moreover, bankers will be the beneficiary in this scheme as subsidy component is high,” Mr. Yadav explained.
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The main objective of ISHUP is to provide basic shelter for the urban poor population at an affordable rate and make India slum-free. It is a Central Government-sponsored interest subsidy scheme targeted at providing institutional housing loan to the people belonging to the economically weaker section (EWS) and lower income group (LIG) for acquisition of house or construction of house.
Interest subsidy
Government shall provide an interest subsidy of five per cent upfront on the housing loan of upto Rs. 1 lakh.
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The rest of the loan provided for house construction shall be on no interest subsidy.
Since the interest subsidy is calculated for the whole period of loan and then given upfront to the bankers by the Government, minimum benefit under this scheme for any beneficiaries shall work out to above Rs 30,000.
Beneficiaries should not possess house in the name of themselves, their spouses or dependent children. Loan for construction of house shall be provided only to those who possess house site pattas.
Income limit for EWS family has been fixed at monthly income of less than Rs. 5,000 per month. The minimum size of the house under EWS category should be 25 sq metres and is eligible for a minimum loan of Rs. 1 lakh. Income limit for a LGS group family has been fixed to range between Rs. 5001 to Rs. 10,000 per month.
Minimum size
Minimum size of the house under LIG category should be 40 sq.mts and minimum amount of loan to been sanctioned is Rs. 1,60,000 with subsidised interest with subsidy restricted to Rs. 1 lakh.
Yadav said that 34,000 applications have so far been received by the Board and sent to banks under the scheme throughout the state.
In Thanjavur, Tiruvarur, Nagapattinam and Ariyalur districts 717 applications have been received and sent to banks. Collector M.S.Shanmugham, who participated, said that in Thanjavur district 524 applications have so far been received and sent to banks. Christopher, Co-ordinator, Tamil Nadu Housing Bank, Vetriselvan, Lead Bank Manager, Indian Overseas Bank, Arumugam, Executive Engineer, Tamil Nadu Housing Board, Thanjavur, Shanthi, Regional Director, Municipal Administration, participated.