BMC Partners with Private Bank to Ease Beneficiaries’ Burden in Affordable Housing
Loan support to help families pay their share under PMAY-Urban 2.0; pilot to cover 600 allottees in Bhubaneswar
Bhubaneswar : Bhubaneswar has taken a major step towards expanding access to affordable housing. The Bhubaneswar Municipal Corporation (BMC) has signed an agreement with a private sector bank to provide housing loans to beneficiaries who are struggling to arrange their share of funds under the Pradhan Mantri Awas Yojana (Urban) 2.0.
The move is expected to ease financial stress for lower- and middle-income families who have been allotted houses but found it difficult to mobilise their contribution.
Beneficiaries Struggling with Contribution
Under PMAY-Urban 2.0, each housing unit is financed through a cost-sharing model: 40 percent each from the central and state governments, and 20 percent from the beneficiary. For many families, this 20 percent share — around Rs 1.5 lakh per house — has been a major hurdle.
Officials said that despite the Centre and state’s support, a significant number of beneficiaries could not arrange their share, delaying progress in certain projects. The banking partnership is aimed at bridging this gap and ensuring that sanctioned homes do not remain on paper.
Pilot Project to Cover 600 Allottees
The first phase of the collaboration will benefit 600 allottees within Bhubaneswar who have already been sanctioned houses. According to BMC officials, loan processing will be simplified through close coordination between civic authorities, bank representatives, and contractors.
A recent coordination meeting finalised modalities for application processing, eligibility checks, and disbursal timelines. “The intention is to ensure that families are not bogged down by paperwork and that the transition from sanction to possession becomes smoother,” a senior BMC official explained.
Larger Housing Push Across the State
This initiative is part of Odisha’s broader drive to expand affordable housing in urban areas. Last month, Housing and Urban Development Minister Krushna Chandra Mahapatra said that multiple construction projects were underway in Bhubaneswar under the Bhubaneswar Development Authority and Odisha State Housing Board.
These housing units, priced between Rs 15 lakh and Rs 50 lakh, are being allotted through a lottery-based system. The government has indicated that similar schemes will later be extended to other urban centres where rapid migration, congestion, and rising property prices have made homeownership increasingly difficult.
Loan Support Seen as Game-Changer
For many beneficiaries, especially those with limited or irregular incomes, arranging Rs 1.5 lakh upfront was not feasible. The availability of structured housing loans is expected to not only ease this burden but also encourage more families to participate in upcoming schemes.
Bank officials said that interest rates will be kept reasonable and repayment schedules flexible to suit beneficiaries’ capacity. The civic body will also provide guidance to ensure that families understand their repayment obligations.
Urban housing experts believe that this collaboration could become a model for other cities in Odisha. “Affordable housing projects often stall not because of government delays but because beneficiaries cannot arrange their share. By facilitating loans, BMC has addressed a critical missing link,” one expert noted.
If successful, the initiative will strengthen trust in the housing scheme and accelerate the pace of home delivery in Bhubaneswar. It could also reduce the city’s slum population over time by offering permanent housing solutions to those currently living in temporary or congested settlements.
With the first 600 allottees set to benefit from loan support, BMC and its partners are monitoring the project closely. If repayment patterns remain stable, the model could be scaled up across future PMAY projects.
For families who have long awaited the security of a permanent home, the initiative offers a ray of hope — turning sanctioned houses into real, livable homes.
