Government housing scheme reforms: Interest rate reduced to 9 percent

Thiruvananthapuram: The norms governing the sale of houses constructed under government-aided schemes like LIFE Mission have been updated, bringing relief to homeowners. 

According to the revised guidelines, houses can now be sold in case of emergencies after seven years. The interest rate on repayments has also been reduced from 12 per cent to 9 per cent.

Previously, decisions regarding house sales were made by the Collector. From now on, a committee chaired by the Collector and convened by the Local Self Government Department Joint Director will oversee these matters. This change aims to streamline the process and ensure timely decisions.

For houses built under schemes like LIFE Mission and PMAY (Pradhan Mantri Awas Yojana), the contract must be registered and cannot be altered without prior approval for seven years from the receipt of the house. Approval to sell requires a report from the local body secretary confirming that the sale will not leave the applicant homeless.

Applicants who sell their homes cannot reapply for housing scheme assistance for five years as well. To speed up decision-making on sale permissions, the six-member committee chaired by the District Collector has been established.