Beneficiaries to avail extra loan under PMAY scheme

The beneficiaries under Pradhan Mantri Awaas Yojan (PMAY) or those who are staying in mud houses can borrow a loan of Rs 70,000 at a reduced interest rate, over and above the grant of Rs 1.30 lakh, which will be provided by the Centre. 

The Pradhan Mantri Awas Yojana, which can be launched in a month’s time, aims to provide homes one crore beneficiaries, which either live in mud houses or are homeless and with 60 per cent of them belonging to SC and ST communities.

According to sources, the Rural Development Ministry, which is nodal ministry for this scheme, recently held deliberations with number of banks, financial institutions and others to provide loans if required by the beneficiaries for construction of their homes.

As per the PMAY scheme, the Centre will directly transfer grant in bank accounts of the beneficiaries. Rs 1.30 lakh per person will be transfered for those staying in plain areas and Rs 1.50 lakh for those who are in hlly terrain.

The plan is to build one crore houses over a period of three years. The work for selection and validation of beneficiaries under the Pradhan Mantri Awas Yojana has been completed. The scheme will be on DBT (direct benefit transfer) mode that means the funds will be transferred directly into the bank accounts of beneficiaries in installments over three years period, a source said.