Housing is an essential need and therefore, without a doubt, qualifies to be a basic human necessity, alongside food and clothing. In order to offer housing opportunities to residents of Jammu and Kashmir, the Jammu and Kashmir government is going to provide a substantial sum to beneficiaries, so as to avail a roof over their heads. To implement the said objective, the Jammu and Kashmir government has initiated the Interest-Free Loan scheme 2021.

About the Interest-Free Loan scheme 2021

The Jammu and Kashmir government, under the implementation of the scheme, will now offer ₹2 lakh as an interest-free loan for the Pradhan Mantri Awas Yojana Urban (PMAY-U).

This loan will be offered to those who live in urban areas without a proper roof over their heads and belong to financially weaker societies. This loan will be given out to the urban people getting by their days without a house, from the PMAYs Beneficiary Led Construction (BLC) component.

What are the salient features of the Interest-Free Loan for Jammu and Kashmir PMAY-U beneficiaries?

  • The interest-free loan will be offered by the government and will be an additional benefit offered over and above the financial assistance of ₹1.66 lakh, which is already provided to the beneficiaries under the PMAY-U scheme.
  • The beneficiaries of the PMAY-U Jammu and Kashmir will now, since the implementation of the scheme, be able to avail a loan of ₹3.66 lakh for the construction of dwelling units for themselves and their families.
  • The government will be benefiting over 41,000 people who stand to be beneficiaries under the BLC component of the PMAY Jammu and Kashmir scheme.
  • The decision is basically a part of the Central government’s aim of providing affordable housing to those from the economically weaker sections of the society. 

Components of the scheme

The scheme implementation is divided into three main components.

  1. The first component is the Beneficiary Led Construction under which the beneficiary will get an amount of ₹1.5 lakh. This would be offered as a subsidy for the construction of new houses or even for the reparation of old houses having less than 30 square meter plinth area.
  2. The second component of the scheme is for those from economically backward sections having an annual income of less than ₹6 lakh a year. In this component, specifically, the beneficiary will get an interest subsidy of up to 4%.
  3. The final component of the scheme is basically for slum redevelopment. The government, in this component, will offer 1BHK houses to the households living in the area, which has officially been declared as a slum by the government.

In conclusion

Housing, though an essential need, is not easy to come by, and therefore often needs assistance. With such schemes in place, people from financially challenged backgrounds can now have a shot at a dignified life for themselves and make sure that they break the cycle of poverty that went on for generations.

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