With assembly elections a couple of months away, the State government has decided to re-introduce the home loan scheme for government employees.
Chief Minister Pramod Sawant on Wednesday said the cabinet has approved the “streamlined” scheme, under which the home loan will be offered at a two per cent interest rate to government servants.
He also said that new applicants will get housing loans from the State-owned Economic Development Corporation (EDC), which has devised a special scheme for the purpose.
“The earlier process of applying for the Housing Building Advance (HBA) scheme was very cumbersome. We have streamlined and reintroduced the scheme for the existing and new staff. The applicants will get the loan at a two per cent rate of interest while the government will bear the balance five per cent interest burden,” Sawant said.
He said the new employees will be allowed to take loans through the EDC, while the existing staff can apply for the loan through the empanelled banks.
Last year, the State government had withdrawn the home loan scheme ostensibly to reduce government expenditure.