According to recent studies, Tamil Nadu has the highest number of homeless people in urban locales, almost 7.3% of the total unsheltered population of India. Approximately 72.9% of this population resides in urban and metropolitan areas.
In recent years, the Tamil Nadu Housing Board introduced several housing schemes to reduce the number of unsheltered in the state. The Government’s flagship rural housing scheme targets to house approximately 30,000 of the unsheltered population of Tamil Nadu by the end of 2023.
This scheme, known as ‘Vision 2023’, aims to develop the necessary infrastructure for the lower income group and economically weaker sections of the community. The Government aims to offer provision for houses to urban slum families and eradicate the slums in all the cities and towns by the end of 2023.
A Detailed Look at Vision 2023
Vision 2023 is in association with the ‘Housing for All’ mission initiated by the Government of India. The TNHB will spend Rs. 65,000 Crore to assist the unsheltered for residential accommodation. Under this scheme, the Tamil Nadu Government will support the construction of properties of up to 30 sq.m carpet area along with civic infrastructure with the help of centrally sponsored schemes.
An applicant will have to bear the rest of the expenses towards the infrastructure. One can opt for a Tamil Nadu Government home loan scheme or avail funds from a Non-Banking Financial Institution as a home loan.
The distribution of property will follow four steps.
- In-Situ Slum Redevelopment
It uses land acquired from slum rehabilitation to provide suitable housing to unsheltered individuals. It provides a grant of Rs. 1.00 Lakh for every home built for eligible dwellers included in the project.
- Credit-Linked Subsidy
Credit-linked subsidy schemes offer increased financial backing to LIG and EWS as a demand-side intervention on loans to purchase a residential property. Beneficiaries will directly receive this credit-linked subsidy on their housing loan interest rates. It will reduce the interest to 6.50% for a loan with a 15-year tenor.
An applicant can avail credit from financial institutions that comply with the Government’s schemes to earn benefits from credit linked subsidy. It will also allow a borrower to utilize steps for effective home loan management like partial pre-payment, reduced interest rates, etc. Companies like Bajaj Finserv offers credit in assistance with the Pradhan Mantri Awas Yojna that reduces its interest rate. They also offer several other features and benefits like top-up loans, balance transfer facilities, flexible tenor, and customized insurance schemes to assist the borrower during repayment.
- Affordable Housing in Partnership –
The State of Tamil Nadu will provide affordable housing options for individuals in the EWS category via private partnerships or agencies. This housing scheme in Tamil Nadu will offer assistance at a rate of Rs. 1.50 Lakh for every EWS home.
- Beneficiary Assisted Individual House Construction –
Tamil Nadu Housing Board will also provide financial assistance to construct new houses or enhance existing accommodation or renovations that can boost a home’s value. Such beneficiary assisted construction schemes are only available to families or individuals who belong to the EWS category. Tamil Nadu Government will offer assistance of up to Rs. 1.50 Lakh per family to alleviate the financial burden of constructing a new property.
‘Vision 2023’ follows a State-level model to implement the Centre’s ‘Housing for All’ scheme. It will merge directorates of Municipal Administrations and Town Panchayats to efficiently distribute affordable housing to EWS, LIG, and the unsheltered population in Tamil Nadu.