RAJIV GANDHI RURAL HOUSING CORPORATION LIMITED
(Government of Karnataka Enterprise)
4th Floor, KHB Complex, Cauvery Bhavan,
K G Road, Bangalore – 560 009
Urban Ashraya Housing Scheme
1. Name of the Scheme
Scheme of Housing for EWS in urban areas
Financial Assistance (per
2. Maximum Rs. 25,000/- (Loan only)
3. Details of financial assistance: (The amount of loan is subject to change as may be
determined by the Government from time to time.)
A) Loan Maximum Rs. 25,000/-
B) Subsidy Not applicable
C) Beneficiary’s Self a) Compulsory minimum contribution of Rs. 5,000/-
contribution b) The beneficiary, according to his needs and capacity, can
bring in his own contribution, in addition to the financial
assistance under the scheme, which will enable him to have
a house with better and additional facilities.
4. Rate of interest 11% per annum
5. Repayment schedule: Maximum 180 EMI (Equated monthly installments)
(Monthly equal installment For every loan of Rs. 10,000/- EMI comes to Rs. 115/-. For
includes principle + interest) Rs. 25,000/- EMI comes to Rs. 290/-. (However, the
beneficiary is expected to save Rs. 300/- in his pigmy
account for this purpose.) As the loam amount increases, the
EMI also increases.
6. Eligibility and Conditions 1. The beneficiary should be a permanent resident of any urban
area in Karnataka and find a place in the list prepared by
Municipality / Corporation.
2. The beneficiary should be economically backward and his
income should fall in the income limit fixed for the poverty
line. (the present BPL limit is Rs. 11,800/- per annum)
3. Hakku Patra (Title deed) should be distributed in the name
of wife. In case of unmarried male/widower beneficiary, it
can be distributed in their names.
4. The beneficiary should not have availed housing assistance
under any other scheme/ department .
5. There is reservation for SC/STs as per rules.
6. Selection of Beneficiaries: In 2003, a survey of
“siteless/houselesss persons” and also “those who had their
own site but were houseless” was done and a list of such
persons prepared. Municipalities / Corporations periodically
update the lists- adding those eligible but left out hietherto
and also delete the names of those who are previously in the
list but are ineligible. Such lists prepared by Municipalities /
Corporations are being made available to Ashraya Samithis
constituted for every for every urban area. The Ashraya
Samithi for urban area selects beneficiaries on the basis of
7. Size and design of the house: The built up area should be not
less than 25 sq. mtrs. There is no prescribed blue print or
design for this purpose. For construction of houses
alternative designs can be adopted to suit the local factors
like soil, climate, locally available construction material,
needs of the beneficiaries, etc., The beneficiary can actively
participate at every stage of construction in order to get a
well constructed house with better and additional facilities.
8. The beneficiary should agree to repay the loan in 180 EMIs.
9. The beneficiary should bring in his contribution without fail.
10. The beneficiary should have opened Saving account and
Pigmy/Janatha account in specified bank for repayment of
loan OR repayment can be made through GP.
11. Till the loan is fully repaid, the beneficiary will be given
only the possession of house and the ownership will be
transferred to her only after repayment of loan in full.
On the whole, the terms and conditions determined by the
Government, from time to time regarding the implementation of
the scheme should be scrupulously complied with.
7. Mode of construction of
1. Beneficiary on her own 1. Beneficiary can herself build the house as per locally
approved plan. (for this purpose, after issue of work order
the amount will be directly paid to the beneficiary in
prescribed installments by account payee cheque.) OR
2. If the beneficiary so desires, the Corporation will construct
2. Through agencies the house through an agency (Nirmithi Kendra, KLAC,
Engineering Division of ZP, NGO etc) nominated by it.
8. Other Matters: The beneficiary should save sufficient amount towards EMI for
repayment of loan. If he fails to pay EMI, such house can be
taken back and allotted to another eligible beneficiary, or else it
can be sold and adjusted against dues.
Note: Check list ( Documents to be submitted)
1. Specified application (Proforma – 1)
2. Agreement with Corporation to avail loan and repayment (Proforma – 2)
3. Mortgage Deed : To be executed to mortgage the site/house in favour of the Corporation till the loan
is fully repaid (Proforma – 3)
4. Beneficiary should open Saving/Pigmy Account and give Irrevocable Letter of Authority to the
concerned Bank for effecting repayment of loan.(Proforma – 4)
From Concerned Chief Officer, Municipality/Commissioner, Corporation/DC of the District
1. Confirmation letter for having complied with conditions etc. prescribed under concerned scheme of
the Corporation/Department and also verification of prescribed documents.
2. Confirmation letter that the beneficiaries have been convinced that they have to repay the loan as per
rules, and that arrangements therefore has been made.
3. Confirmation letter accepting responsibility for repayment of loan.
4. Monthly/Annual reports in prescribed proforma to be submitted regarding successful implementation
of the scheme.
5. Any other relevant information regarding successful implementation of Housing Scheme etc.
For further information contact the following addresses:
1. Rajiv Gandhi Rural Housing Corporation Limited, Cauvery Bhavan, 4th Floor, K.G. Road,
KHB Complex, Bangalore – 560 009.(Tel.No. 22232065/67/22238001/22227558 Fax: 22232066)
E-mail : email@example.com /firstname.lastname@example.orgemail@example.com
2. Deputy Commissioner of the concerned districts.
3. Chief Officer, Municipality concerned or Commissioner, Corporation concerned.