Karaikudi (TN) (PTI): Union Finance Minister P Chidambaram on Saturday launched "Housing Micro Finance Initiative" for mofussil and rural public under which Self Help Group members could avail housing loan.

The scheme would be useful for those who have land. Money to build houses would be given as loan and no margin money would be required to be deposited, he said.

He said SHGs and NGOs had been selected for the scheme as it was noticed that SHG women members were prompt in repaying the loans and ninety nine per cent of the loan given to them had been repaid.

National Housing Bank would give refinance to Repco Bank which would in turn give the credit to SHGs or NGO members through its foundation for micro credit.

He appreciated the pace of development achieved by Repco bank, which was mainly created for the benefits of repatriates from Burma, Sri Lanka and other countries.

Meanwhile, National Housing Bank, the apex financial institution for housing finance, said in a release that it had tied up with Repco Foundation for micro credit, a non profit company promoted by Repco Bank, for providing housing micro finance to members of SHGs in rural areas of Sivaganga, Pudukottai, Coimbatore, Nilgiris districts.

It had a ambitious plan to cover 10000 members in the next five years with an outlay of Rs 100 crore under rural housing Micro finance scheme.