Andhra Pradesh govt may facilitate bank loans for beneficiaries of Jagananna colonies

AMARAVATI: In an attempt to give further impetus to the construction of houses in YSR Jagananna colonies, the state is contemplating to rope in banks to grant loans to beneficiaries.

The government is planning to offer subsidy on rate of interest to be charged by banks to ensure the loans are granted at an interest rate of 25 paise per Rs.100.

The government says such financial assistance would help more beneficiaries to take up the construction in YSR Jagananna housing project. The grounding ceremony organized in last three days has received an overwhelming response from beneficiaries as it reported almost 200 percent achievement over the target.

The state government had initially wanted to make at least three lakh beneficiaries launch work in days in July, 1, 3 and 4.

However, more than six lakh people launched works in the plots allocated to them in the YSR-Jagananna colonies.

The state government received feedback from field-level administration that majority of beneficiaries were worrying about completing the houses within the prescribed budget of Rs.1.8 lakh. Several beneficiaries represented to the housing department officials that it would be extremely difficult for them to complete the structure without granting additional financial assistance from the government.
Sources said that the district project directors of the housing department and municipal commissioners who were overseeing the housing project works reported to have explained the ground level situation to senior officials. The field level officials were also worried that it would be difficult for them to reach the targets in case the beneficiaries stalled the work soon after the grounding ceremony. The state government would release the unit cost to the beneficiaries only after completion of each and every phase for which the beneficiaries had to invest their own monies.

Taking the ordeals of the beneficiaries, the government is contemplating to offer loans at subsidized rates. “Since majority of beneficiaries of the housing scheme are members of women self-help groups, we are planning to request the bankers to sanction special loans for the construction of the houses. We can offer subsidy on the rate of interest in such case,” said housing minister Cherukuvada Sri Ranganatha Raju.

He said the issue would be discussed with chief minister YS Jagan Mohan Reddy before making a formal announcement. The housing department officials were readying the data of the beneficiaries who were part of the self-help groups to assess the financial burden on the exchequer.