The Hindu Business Line : Indira Awas Yojana scheme launched in Madurai

Madurai, Jan. 8 The rural housing scheme for people below the poverty line named ‘Indira Awas Yojana (IAY)’ coupled with the differential interest rate scheme in public sector banks was launched for the first time in the district on Tuesday.

It is the second district in the State to launch the scheme, following Sivaganga district earlier.

Under the scheme, the IAY beneficiaries are extended a bank loan of Rs 20,000 each at 4 per cent rate of interest with an equated monthly instalment of Rs 275 per month, repayable in 84 months.

The initiative is to prevent the beneficiaries from taking outside borrowings at exorbitant rate of interest to complete the construction, with the costs going up steeply in recent times.

The District Collector, Mr S.S. Jawahar, handed over the sanction letters to 180 beneficiaries from Tirumangalam and Usilampatty blocks, in a function held at Chekkanoorani, near here. The function was organised by Canara Bank, the lead bank of the district, in association with the District Rural Development Agency. State Bank of India, Canara Bank, Indian Overseas Bank and Indian Bank too participated.

Under IRY, launched in January 1996, assistance to rural people belonging to scheduled castes/scheduled tribes as well as non-scheduled caste and scheduled tribes below the poverty line for construction of dwelling units and upgradation of existing unserviceable kutcha houses has been extended through grants-in-aid to the extent of Rs 37,000 and Rs 12,000, respectively.

However, over a period, with construction costs going up, the beneficiaries reported inability to complete the construction and were forced to resort to external borrowings.

Following this, the banks have come up with a scheme to assist them, said Mr Atul Mishra, Project Officer, DRDA, speaking earlier.

The District Collector, Mr S.S. Jawahar, in his address said that for the current fiscal 1,943 houses would benefit under the scheme. With reference to opening no frills account in banks for the poor, out of 7.5 lakh in the district, around 7 lakh have been covered and the rest brought under the scheme by the end of January.

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