Credit cum Subsidy Scheme for Rural Housing

2 years ago Sarkari user 0

Overview: Credit cum Subsidy Scheme for Rural Housing in which large number of households in the rural areas which could not be covered in Indira Awaas Yojana (IAY is one of the many programmes of the Ministry of Rural Development), as either they do not fulfill the eligibility criteria or due to the limits imposed by the available budget of government. On the other hand due to limited repayment capacity, these rural households are unable to take benefit of fully loan based schemes offered by some of the housing finance institutions. The need of this majority can be met through a scheme which is part credit and part subsidy based.

Aim: To facilitate construction of houses for rural families who have some repayment capacity. The scheme provides shelter to rural families who have not been covered under IAY and who are desirous of possessing a house. All rural households having annual income up to Rs. 32,000/- will be covered under this scheme. Like IAY, deals with the housing issue and promises to provide shelter to shelterless. Credit cum Subsidy Scheme for Rural Housing fulfills the housing need of poor rural people who are living below the poverty line (BPL).

NOTE: The funds are shared by the Center and the State government in the ratio of 75:25 respectively.

How to implement:

Rural poor above the poverty line are going to get the benefits of the scheme. A maximum subsidy of Rs. 10,000/- per unit is issued for the construction of a house by government. Sanitary latrine and smokeless chulha are necessary part of the house. Cost effective and environment friendly technologies, materials, designs, etc. are settled. 60% of the houses are allocated to SC/ST rural poor.

The assistance for credit-cum-subsidy scheme is Rs.12,500/- per unit. As a part of Indira Awaas Yojana, this Ministry is implementing since 1999-2000 the Credit-cum-Subsidy Scheme for rural housing in which credit upto Rs.50,000/- and subsidy upto Rs. 12,500 is provided to rural households having an annual income upto Rs. 32,000/- for the house construction.

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