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Housing loan recovery less than 10 p.c.: Prakash

By Our Special Correspondent

BANGALORE, JULY 27. The recovery of housing loans was less than 10 per cent in some of the districts and the Rajiv Gandhi Housing Corporation had been saddled with Rs. 700 crores un-recovered loans, the Revenue and Parliamentary Affairs Minister, M.P. Prakash, told the Legislative Assembly on Tuesday. He was referring to demands from the members for raising the quantum of loans for rural housing and to lower the interest rate.

The Leader of the Opposition, B.S. Yediyurappa, wanted the Government to increase financial assistance provided for construction of houses under the Ashraya and Ambedkar schemes.

Financial aid

Earlier, replying to Prabhakar Bangera (BJP), the Minister spoke of the difficulty faced by the Government in increasing financial assistance for housing schemes owing to poor recovery of loans from beneficiaries. At present, beneficiaries in rural and urban areas had been receiving Rs. 20,000 and Rs. 25,000 each, respectively. The subsidy component for a rural beneficiary was Rs. 10,000.

Review

Jayaprakash Hegde (independent), Araga Jnanedra (BJP) and J.C. Madhuswamy (Janata Dal-U) alleged that houses had been allotted to ineligible persons and demanded that the list be reviewed.

The Minister said the Housing and Urban Development Corporation was charging 11 per cent interest on housing loans whereas banks and other financial institutions charged eight per cent.

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