AP CM disburses Rs 47 Cr interest reimbursement in housing scheme

January 19, 2024: Andhra Pradesh Chief Minister YS Jagan Mohan Reddy, on January 18, 2024, disbursed a total of around Rs 47 crore in interest reimbursement to over four lakh beneficiaries who availed housing loans, according to media reports. The interest reimbursement is under the Navaratnalu-Pedalandariki Illu scheme, which is disbursed twice a year.

While addressing the beneficiaries and officials from his camp office, the chief minister said that the interest reimbursement over and above the 3% on a bank loan of Rs 35,000 each helps the beneficiaries pay only 25 paisa interest on housing loans for houses constructed in Jagananna Colonies, as cited in the media reports.

As banks are providing housing loans at 9% to 11% interest rates, the state government has decided to reimburse interest over and above 3% to reduce the financial burden of the beneficiaries.      

Until now, bank loans worth about Rs 4,500 crore have been provided to around 13 lakh beneficiaries under the scheme, the chief minister said. He further stated that 31.19 lakh house site pattas have been distributed to the poor, with over 22 lakh houses under construction. As many as 8.6 lakh houses have been handed over to the beneficiaries.

Under this initiative, the AP government is offering a benefit of Rs 2.7 lakh on the construction of each house, including financial assistance of Rs 1.8 lakh, free sand worth Rs 15,000 and discounts worth Rs 40,000 on the supply of cement, steel and metal frames, he said. Moreover, the value of the property ranges from Rs 5 to Rs 20 lakh, depending on the area.