PNB, Axis, HDFC ready to fund poor for housing in Haryana

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CHANDIGARH: Private banks including HDFC and Axis bank have expressed interest in providing loans to poor in Haryana for the housing under the state sponsored scheme. The state government plans to fund Rs 1600 crore to build 3.5 lakh houses for poor in the two years.

"A few private banks have already expressed interest in providing loans for the poor being covered under the housing scheme," principal secretary, rural development Haryana, Ram Niwas said during 124 th state level banker' meeting at Chandigarh. He urged public sector banks to cash in on the business opportunity. Under the scheme the poor are to pledge their plots to avail the bank loans.

Not many public sector banks have been forthcoming even though the state government was expecting warm response from them as the part of the cost of the house is being subsidised. Punjab National Bank is only bank that has formulated a scheme to cash in on the opportunity. "A house would cost around Rs 4 lakh while value of such house could be as high as Rs 14 lakh in NCR region," Mr Niwas said. The banks are expected to provide loans of around Rs 2.5 lakh for beneficiaries," he said. In any case risk of the banks' would be covered under the Credit Guarantee Fund, he said.

The housing schemes will be formally launched in June by Haryana chief minister Bhupinder Singh Hooda as Rs 25,000 will be transferred into the accounts of the beneficiaries.

In rural areas the Priyadarshini Awaas Yojna, a scheme announced by Haryana government in the budget earlier this year each of the 2 lakh beneficiary will be allocated Rs 81,000 as grant for construction of a new house. An assistance of Rs 9,100 will also come under the Nirmal Bharat Abhiyaan scheme. The scheme is being funded by HUDCO that will provide around Rs 1350 crore. For the urban poor 1.5 lakh houses are to be build by 2014-15 through Housing board Haryana, Urban Local Bodies and Town and Country Planning.

A public private partnership model has been proposed to provide liberal concessions to private players in CLU, EDC, licence fee and FAR. Financial Institutions have been mobilized to provide loans under ISHUP scheme and interest subsidy 5% will be available up to loan of Rs one lakh. The beneficiaries will be provided a unit of 300 square feet at highly subsidized rates . The state government has asked banks to allow maps authenticated by Patwaris in area within the Laldorra for issuing banks loans, Niwas said.

In wake of rise in Non performing Assets (NPA), public sector banks are seeing it as a risky proposition, an executive of public sectior bank said.

http://economictimes.indiatimes.com/mar ... 068824.cms