Credit cum Subsidiary Scheme for rural Housing
GUIDELINES
Introduction
There are a large number of households (below the poverty line and above it) in the rural areas, who could not be covered under Indira Awaas Yojana, as either they do not fall within 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 needs of this large majority can be met through a scheme which is part credit and part subsidy based. The introduction of a part credit, part subsidy based scheme will be an important step in the direction of redefining the role of the Government from that of a provider to a facilitator as envisaged in the National Housing and Habitat Policy 1998.
Target Group
The target group under the Credit cum Subsidy Scheme will be a rural household having an annual income of upto Rs 32000/- only. However, Below Poverty Line Rural Households shall be given preference. At least a minimum of 60% of the funds allocated under this Scheme as subsidy to each State, shall be utilized in financing the construction of Scheduled Castes, Scheduled Tribes and freed bonded labourers.
Target Area
The State may independently decide as to whether it desires to implement this Scheme throughout the State or within a few districts/blocks. The target areas that can be taken up under the Credit cum Subsidy Scheme should be solely the rural areas and atleast 20 kms away from metropolitan and large towns and 5 kms. away from the small and medium towns.
Identification of Beneficiaries
Identification of beneficiaries under the Credit cum Subsidy Scheme and the modus operandi to be adopted is the sole prerogative of the States.
Implementation Agency
The Implementation Agency for the Credit cum Subsidy Scheme for Rural Housing may be the State Housing Board, State Housing Corporation, specified Scheduled Commercial Bank, Housing Finance Institution or the DRDA/ ZPs. The identification of the most appropriate implementation agency under the Credit cum Subsidy Scheme shall be left to the State Government.
Criteria of Allocation
The subsidy element of the Credit cum Subsidy Scheme will be shared on 75:25 basis between the Centre and the States. The criteria of allocation of funds under the Credit cum Subsidy Scheme to the States shall be both poverty ratio as determined by the Planning Commission and the housing shortage. The proportion of the two variables shall be 50:50. The respective State Governments can decide the allocation of funds within the State. It shall be the sole prerogative of the State Government to specify inter district targets, once the state target has been communicated by the Ministry of Rural Development
Upper Limit of Construction Assistance Subsidy/Loan
The upper limit of construction loan ceiling of subsidy that can be given under this Scheme is Rs admissible under this Scheme will be Rs 40000/- per household. The State Government is free to identify the agency from whom the loan will be sourced and disbursed. This may be from either a Scheduled Commercial Bank, Housing Finance Institution or the State Government directly.
Monitoring
§ Overall monitoring of this scheme will be the responsibility of the Ministry of Rural Development.
§ The State Governments under this Scheme to the Ministry should submit the following reports and returns.