Recently, Administrative Council of the Jammu & Kashmir has given approval for the proposal of the Housing and Urban development department to provide interest-free loans up to Rupees 2 lakh. The approval was given under the leadership of Lieutenant Governor Manoj Sinha.

After the approval, the interest-free loans up to Rupees 2 lakhs will be given to the urban houseless and economically weaker section beneficiaries. The loans will be given under the Construction- BLC component of the Pradhan Mantri Awas Yojana- Urban scheme.  The interest-free loans will be provided for a period of a one decades (10 years). It also comprises of a moratorium of 180 days (6 months). The loan amount is repayable by a monthly instalment of Rupees 2,500. This approval is in line with the aim of the union government to provide affordable housing to economically weaker sections in the country.


The interest-free loan will provide an additional benefit to the beneficiaries. In total, the benefits will be over and above the financial assistance of Rupees 1.66 lakh which has been already provided to beneficiaries of PMAY-U.With this approval, the beneficiaries of the scheme can now avail Rupees 3.66 lakh to construct their dwelling units.

Beneficiary-Led Individual Component of the scheme

Under the Beneficiary-Led Individual House Construction component, the PMAY-U scheme currently benefits 41,992 beneficiaries. However, such beneficiaries in the Union Territory Jammu & Kashmir have been experiencing difficulty to mobilize their contribution because they belong to the economically weaker sections. Further, they contribute for a higher share when compared to the shares of other states and Union Territories. As a result, the construction of dwelling units of Beneficiary-Led Individual component of the scheme has not yet achieve the desired target. Following this, the beneficiaries demanded to enhance the assistance given to them so that they could complete the construction of houses in specified time. Thus, the state government given its approval to provide interest-free loans to all the beneficiaries.

J&K Govt approves Rupees 2 lakh interest-free loan under PMAY-U J&K Govt approves Rupees 2 lakh interest-free loan under PMAY-U