6,000 Bhubaneswar residents to be provided house loans as BMC partners with private banks for pilot project

The Bhubaneswar Municipal Corporation (BMC) has signed an agreement with a private sector bank to provide housing loans to beneficiaries of affordable housing schemes who are facing difficulty in arranging their financial share under the Pradhan Mantri Awas Yojana (Urban) 2.0.

According to The Times of India reports, the first phase of the partnership will cover 600 allottees who have already been sanctioned houses in different projects within Bhubaneswar city limits.

Cost To Be Shared Between Centre, State, and Beneficiary

Each unit requires a cost-sharing model where the Centre and state contribute 40 per cent each, while the beneficiary pays the remaining 20 per cent, which comes to about Rs 1.5 lakh per house. Many beneficiaries have struggled to mobilise this amount, prompting the civic body to involve banking support.

A coordination meeting was recently held between BMC, bank officials, contractors and departmental representatives to finalise how loan applications would be processed and assistance extended to families in navigating banking procedures.

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State Housing Programme Expands

The initiative follows the state government’s push to accelerate affordable housing delivery. Last month, Housing and Urban Development Minister Krushna Chandra Mahapatra announced that construction was underway at multiple sites in Bhubaneswar.

The projects are being executed by the Bhubaneswar Development Authority and the Odisha State Housing Board.

Houses under this scheme are priced between Rs 15 lakh and Rs 50 lakh and are being allotted through a lottery-based selection system. The Housing and Urban Development Department has indicated that the scheme will later be extended to other urban centres facing congestion and rising property costs.