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Gujarat CM Waives Penal Interest for 9,000+ Rural Housing Beneficiaries

Gujarat Chief Minister Bhupendra Patel has announced a one-time waiver of penal interest for beneficiaries of rural housing schemes. The relief, estimated at nearly Rs 154 crore, will benefit over 9,000 families who clear their outstanding principal amount within six months. This move aims to ease the financial burden caused by accumulated penalties on delayed loan instalments. Importantly, beneficiaries who comply will receive full ownership rights to their houses, securing long-term housing stability.

Key Points: Gujarat CM Grants Penal Interest Relief for Rural Housing

  • One-time waiver of penal interest
  • Relief for over 9,000 rural families
  • Must clear principal in 6 months
  • Enables full home ownership
  • Total relief estimated at Rs 154 crore
2 min read

Gujarat CM grants one-time penal interest relief to over 9,000 rural housing beneficiaries

Gujarat CM Bhupendra Patel announces a Rs 154 crore penal interest waiver for over 9,000 rural housing scheme beneficiaries, easing financial burden.

"a substantial financial relief for low-income rural households - Officials"

Gandhinagar, Jan 23

Gujarat Chief Minister Bhupendra Patel, on Friday, announced a significant relief measure for beneficiaries of rural housing schemes run by the Gujarat Rural Housing Board, granting a one-time waiver of penal interest to thousands of families across rural areas of the state.

The decision aims to ease the financial burden on beneficiaries who are willing to repay the remaining principal amount of their housing loans but have struggled to pay the penal interest levied on delayed instalments.

Under the decision, beneficiaries of various housing schemes of the Gujarat Rural Housing Board in rural areas will be eligible for a one-time penal interest waiver if they clear the entire outstanding principal amount within a stipulated period of six months.

The penal interest, charged at a rate of two per cent per month on overdue instalments, will be fully waived for those who comply with the conditions within the given timeframe.

Officials said the decision was taken after several beneficiaries approached the Chief Minister, saying that while they were prepared to repay the principal amount in full, the accumulated penal interest had become unaffordable.

Responding to these representations, Chief Minister Patel issued clear directions to introduce the one-time relief scheme in the broader interest of rural housing beneficiaries.

As a result of this measure, an estimated 9,029 rural families across Gujarat are expected to benefit.

The total relief extended through the waiver of penal interest is estimated at nearly Rs 154 crore.

Officials described the move as a substantial financial relief for low-income rural households that have been part of the state's housing programmes.

An important outcome of the decision is that beneficiaries who clear their full principal dues within the six-month window will also receive ownership rights to their houses.

With the transfer of ownership in their names, these families will formally become homeowners, securing long-term housing stability.

By enabling beneficiaries to regularise their housing accounts without the burden of penal interest, the state government aims to accelerate the process of granting legal ownership to eligible families.

Officials noted that the relief scheme will be implemented as a one-time measure, and beneficiaries have been advised to take advantage of the opportunity within the prescribed period.

The move is expected to help rural families fulfil the goal of owning a permanent home, reinforcing ongoing efforts to expand access to housing in Gujarat's villages.

- IANS

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Reader Comments

S
Shreya B
Finally some empathy from the government! 2% per month is a huge burden for low-income families. My uncle in Kutch was struggling with this. Hope the process to avail this waiver is simple and not lost in red tape.
A
Aman W
While the relief is welcome, this highlights a systemic issue. Why was the penal interest so high in the first place? It trapped people. The government should review all such schemes to prevent this from happening again. Help should be proactive, not reactive.
P
Priyanka N
Ownership rights are the key here. For so many families, a house is not just shelter but security and dignity. ₹154 crore relief is significant. Hope other states take note and implement similar people-friendly policies. 👏
K
Karthik V
Good step, but the six-month window might be tight for some. After years of financial strain, arranging the full principal amount quickly is a challenge. Hope there is some flexibility or installment option for those who are genuinely trying.
M
Michael C
Interesting policy. From a development economics perspective, clearing these liabilities and granting title can unlock economic potential. Secure property rights are foundational. Will be watching to see the implementation results.

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