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• The construction, extension, or repairement of the house was done by the KCC amount or loans
from informal sectors (like friends, relatives etc.)
• Mostly people have to pay 0 interests if they took loans from their relatives or friends.
• The amount of loan taken is very small ranging between Rs.10,000 to Rs. 1,00,000. People had to
bear an overhead cost of Rs. 2,000 to 3,000 before getting their housing loan sanctioned of around
Rs.1.00 lakh. So, people also faced problems due to corrupt framework.
• Rural households also showed dissatisfaction with Bank correspondents (Bank Mithras) as they did
not give complete information about the bank schemes. People were totally unaware of any housing
loan schemes which impeded credit flow to this sector.
• No survey or vigilance was ever done by any government body for such schemes. In IAY the needy
people (BPL) were often removed from the list and instead some other people were added to it.
Supply Side Perspective:
• Out of the 120 households, only 20 households -12 in Barabanki and 8 in Raebarelli districts availed
housing loans from banks. Thus, only a small fraction of 16.7% of the families availed housing loans.
In addition, 35 households – 18 in Barabanki and 17 in Raebarelli districts utilized their KCC loan
for hosing purpose.
• Out of the total family surveyed, 33% in Barabanki and 20% in Raebarelli district belonged to the
beneficiaries of IAY / RMLAY.
• The size of individual housing loan taken was ranging between Rs.50000 to Rs.100000/-. There
were 2 households who took loan of Rs.5,00,000 & 7,00,000 respectively as they belonged to
salaried class and the agricultural land owned by them was leased out.
• The housing requirement was fulfilled by two ways-
For the Economic Weaker Section (EWS) and Below Poverty Line (BPL) households direct assistance
for housing was provided by the state government.
For the economically sound person indirect assistance was provided through rural housing loans and
other credit facilities.
• The quantum of housing loan sanctioned by different branches were found to be in the range of Rs.
1,00,000 to Rs.2,00,000.
• A high percentage of NPA was observed in the branches visited. In fact 80% of the loans sanctioned
were NPA. Due to poor recovery, banks are now not forthcoming for providing housing loans to the
low income group people.
• People are depending on agriculture, this leads fluctuating income hence they could not repay the
loans timely.
• Banks could not take the benefit of the SARFAESI ACT to recover the default in most of the cases as
their holding size was less than 3 acre.
