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Poor can pay home loans via pigmy collectors

The state government, which claims it to be the first such initiative in the country, is expected to launch it by the first week of September. 

Published: 22nd August 2020 03:52 AM  |   Last Updated: 22nd August 2020 03:52 AM   |  A+A-

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Express News Service

BENGALURU: The Department of Housing is soon introducing a novel way for the poor, who have bought affordable flats in the government constructed apartments, to pay home loans easily. Instead of paying equated monthly installments (EMIs), they can opt to pay small amounts every day through pigmy collectors.

The state government, which claims it to be the first such initiative in the country, is expected to launch it by the first week of September. Over one lakh flats are under construction now, of which 50,000 are in BBMP limits. Under the housing scheme for economically weaker sections, a one-BHK house would cost Rs 10.56 lakh, of which the state and central governments give a subsidy of Rs 2.71 lakh for general and Rs 3.50 lakh for SC/ST beneficiaries.

The government has selected close to 86,000 beneficiaries. Two BHK costs Rs 15 lakh and will be allotted through auction. Payment options for 2BHK will be initiated later. Rajiv Gandhi Housing Corporation Ltd chairman Ram Prasath Manohar said the novel initiative is the brainchild of Housing Minister V Somanna. Most of the beneficiaries are daily wage workers, who may find it difficult to pay EMIs.

“That’s why we are introducing the pigmy system, where one can pay every day Rs 50-100 to the authorised pigmy collector. We will draw pigmy collectors from banks, and each collector will be given 100 beneficiaries and a hand-held device. They will go to the doorsteps of beneficiaries, collect the amount and enter the amount on the machine on the spot. Immediately, an SMS alert will be sent to the beneficiary,’’ he said. The housing project is expected to be completed by 2022. 

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