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 Credit-cum-Subsidy Scheme for Rural Housing  
 

There were a large number of households in the rural areas which could not be covered under the IAY, as either they do not fall into the range of eligibility or due to the limits imposed by the available budget. On the other hand due to limited repayment capacity, these rural households cannot 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.

 

Objective:

The objective of this scheme for rural housing is to facilitate construction of houses for rural families who have some repayment capacity. The scheme aims at eradicating shelterlessness from the rural area of the country.

 

Scope:

The scheme provides shelter to rural families who have not been coveted under IAY and who are desirous of possessing a house. All rural households having annual income up to Rs. 32,000/- are covered under this scheme.

 

Funding:

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

 

Strategy:

Rural poor just above the poverty line are entitled to get the benefits of the scheme. A maximum subsidy of Rs. 10,000/- per unit is provided for the construction of a house. Sanitary latrine and smokeless chulha are integral part of the house. Cost effective and enviornment friendly technologies, materials, designs, etc. are encouraged. Sixty per cent (60%) of the houses are allocated to SC/ST rural poor.

 

How to Seek Assistance:

State Governments decide the implementing agency, which may be the State Housing Board, State Housing Corporation, specified scheduled Commercial bank, Housing Finance Institution or the DRDA/ZP. The person desirous of getting benefit of the scheme may approach the implementing agency.

 Credit-cum-Subsidy Scheme for Rural Housing
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