No subsidy, Karnataka government plans to pay housing loan interest

News Network
November 27, 2019

Bengaluru, Nov 27: The state government plans to revisit existing affordable housing schemes that offer subsidies on home loans and replace them with interest-free home loans.

This is part of the government’s mission to promote PM Modi’s ‘housing for all’ scheme. The government plans to build 19 lakh houses in 30 months.

If everything goes to plan, the government will do away with existing housing subsidies and pay the interest on principal of up to Rs 12 lakh in urban areas and Rs 6 lakh in rural areas.

As per the draft, beneficiaries must repay only the principal to banks. The state will bear the interest for a period of 15 years (maximum loan tenure). The government will pay interest of 6.5% a year on the Rs 12 lakh loan (urban areas) and 8% a year on the Rs 6 lakh loan (rural areas).

Loans for houses under three models

Any principal or interest above the limit will have to be borne by the beneficiary. The houses will have carpet area ranging between 330sqft and 450sqft. Karnataka Housing Board, urban local bodies, Nirmithi Kendras and Karnataka Road Infrastructure Development Corporation and empaneled units will be the implementing agencies.

The loans will be offered under three models. First, loans will be provided by combining Rs 6 lakh from the central government and Rs 6 lakh from the state under Pradhan Mantri Awas Yojana in urban areas and Rs 6 lakh in rural areas.

The second is the public-private partnership model. Under this, the government and private agency will share sites on developed land and the beneficiaries will buy the developed house or construct their own through an association formed by them.

If the beneficiary opts to purchase a developed home which is more than the upper limit of the loan, then she has to pay remaining amount.

In the third model, a private agency will develop the land and hand over a 50% share of the land to the government, which will distribute it to the beneficiaries. The state has sought to increase the financial eligibility of beneficiaries for housing scheme to Rs 3 lakh from the present Rs 87,600 in urban areas and Rs 32,000 in rural areas.

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News Network
February 13,2020

Bengaluru, Feb 13: Veteran freedom fighter and advisor to the Karnataka Government in Education Reforms HS Doreswamy on Thursday has recommended Chief Minister BS Yediyurappa to make it mandatory for MLA and MLCs to adopt at least three govt Schools in their respective constituencies.

Mr Doreswamy appealed to the Chief Minister to implement the suggestion in the State budget for 2020-21 to be presented by him on March 5.

Addressing a press conference here, Mr Doreswamy, on the higher education sector, stressed the need to appoint highly qualified candidates for Vice Chancellor posts. There is no dearth of talent and eligibility in the State and authorities concerned must ensure that the right person is appointed by taking extreme care".

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News Network
April 27,2020

Bantwal, Apr 27: Following the meeting at a guest house here, district in-charge Minister Kota Srinivas Poojary instructed the officials to stringently impose the lockdown in the taluka.

He stated that there will be no relaxation and exemptions in Bantwla till May 3 and ASHA workers will be continuing surveying houses in Bantwal Kasba and Narikombu.

Two people have already died from COVID-19 in the taluka and two new cases were reported in the past week.

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News Network
May 24,2020

Bengaluru, May 24:The first 'Sunday curfew' imposed by the Karnataka government to try and contain the spread of COVID-19 got underway in the state today, with people by and large adhering to norms, roads wearing a deserted look and almost no vehicular traffic, barring essential services.

With barricades being up across most roads in the state, people ventured out only to purchase groceries, vegetabes and medicines.

Instances of violation of Sunday curfew lockdown norms were reported in COVID-19 hotspots of Shivajinagar and Rayapura in Bengaluru and Nelamangala and Devanahalli.

Temples, malls, bars, eateries and small food joints remained shut throughout state.

In most parts of the state buses, autorickshaws and cabs did not ply.

In Bengaluru, the ever bustling Majestic area, which houses the central city bus stand, inter-city bus stand, Metro Railway Station and the City Railway Station, did not see any activity as buses did not ply and all shops were shut, police said.

Reports from Mysuru, Tumakuru, Kolar, Mangaluru, Udupi and other towns across the state said there were no lockdown violations.

Amid the rigid curfew marriages were conducted in a simple manner in various parts of the state like Gollarahatti and Yashwanthapura in Bengaluru and also in Davangere.

Families of the brides and grooms invited only a few people for the event, adhered to social distancing norms and wore masks.

In Gollarahatti, the event organisers cleaned the road, after which the invitees, who were hardly 25 to 30 in number, sat down to have a feast.

The Karnataka government had eased restrictions during Lockdown 4 for start of economic activities like city buses, inter-district bus service, intrastate train services, opening of shops and markets.

However, the government had made it clear that there will be 'Janata Curfew' every Sunday during which only essential services would be permitted.

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