Bhubaneswar Municipal Corporation Partners with Private Sector Bank for Affordable Housing Loans

Strategic Insights -

The Bhubaneswar Municipal Corporation (BMC) has taken a significant step to alleviate financial burdens on beneficiaries of affordable housing schemes under Pradhan Mantri Awas Yojana (Urban) 2.0. In collaboration with a private sector bank, the BMC aims to provide housing loans to 600 allottees who have been sanctioned houses in various projects within Bhubaneswar city limits. The initiative follows the state government's push to accelerate affordable housing delivery, with Housing and Urban Development Minister Krushna Chandra Mahapatra announcing the commencement of construction at multiple sites in Bhubaneswar.

Key Takeaways:

  • The Bhubaneswar Municipal Corporation (BMC) has signed an agreement with a private sector bank to provide housing loans to 600 beneficiaries of affordable housing schemes.
  • The cost-sharing model for each unit requires a contribution of 40% each from the Centre and state, while the beneficiary pays the remaining 20% amounting to approximately Rs 1.5 lakh per house.
  • Many beneficiaries have struggled to mobilise this amount, prompting the BMC to involve banking support to assist with loan applications and navigation of banking procedures.
  • A coordination meeting was conducted between the BMC, bank officials, contractors, and departmental representatives to finalise the loan application processing and assistance procedures.
  • The initiative follows the state government's push to accelerate affordable housing delivery, with Housing and Urban Development Minister Krushna Chandra Mahapatra announcing the commencement of construction at multiple sites in Bhubaneswar.
  • Houses under this scheme are priced between Rs 15 lakh and Rs 50 lakh and are being allotted through a lottery-based selection system.
  • The scheme is expected to be extended to other urban centres facing congestion and rising property costs in the future.

Statistics:

  • 600 allottees are set to receive housing loans under the partnership between BMC and the private sector bank.
  • The benefit of the housing loans will cover approximately 20% of the total cost per house, amounting to Rs 1.5 lakh.
  • The cost-sharing model involves a 40% contribution each from the Centre and state, while the beneficiary pays 20%.
  • The state government has initiated construction at multiple sites in Bhubaneswar for the affordable housing scheme.
  • The scheme includes houses priced between Rs 15 lakh and Rs 50 lakh allocated through a lottery-based selection system.
  • The initiative aims to alleviate financial burdens on beneficiaries and accelerate affordable housing delivery.

Sources:

  • The Times of India
  • Orissa TV