BMC Ties Up with Private Bank to Support Housing Beneficiaries

Bhubaneswar : The Bhubaneswar Municipal Corporation (BMC) has signed an agreement with a private sector bank to provide housing loans to beneficiaries under the Pradhan Mantri Awas Yojana (Urban) 2.0. The step aims to help families struggling to arrange their share of funds for allotted houses.

Cost-Sharing Challenge

Each house under the scheme follows a cost-sharing model: 40 percent each from the Centre and state, and 20 percent from the beneficiary, which amounts to about Rs 1.5 lakh. Many families have found it difficult to mobilise this amount, delaying progress. The loan tie-up is expected to bridge this gap.

 Pilot to Cover 600 Beneficiaries

In the first phase, 600 beneficiaries in Bhubaneswar who have already been sanctioned houses will receive loan support. A coordination meeting between BMC, bank officials, contractors and departmental representatives has been held to simplify loan applications and ease banking procedures for families.

Affordable Housing Push in Odisha

The move aligns with Odisha’s broader push to accelerate affordable housing. Multiple projects are underway in Bhubaneswar under the Bhubaneswar Development Authority and Odisha State Housing Board, with homes priced between Rs 15 lakh and Rs 50 lakh allotted through a lottery system.

Ray of Hope for Families

Experts say the initiative could serve as a model for other cities, addressing a key barrier in affordable housing delivery. With structured loans and simplified procedures, many lower- and middle-income families are now closer to owning a permanent home.