Maharashtra government resolution passed: home loan amount increased for cops
In order to ensure that nearly 2.2 lakhs of police officers across Maharashtra have a roof over their heads after retirement, the state has increased the amount of the housing loan for police officers from Rs 200 crore to Rs 1 500 crore. Maharashtra State Police Housing and Welfare Corporation (MSPHWC) will apply for this loan from banks and provide it to police officers who need a loan to build houses.
There is a huge demand for housing loans from the police outside the CEO’s office, with around 7,500 such applications currently pending. Police hope the waiting list will be reduced by increasing the amount available for loan disbursement.
A senior IPS official said: âThe state government has decided to increase the loan amount available for police officers from Rs 200 crore to Rs 1,500 crore. A government resolution (GR) to this effect was adopted. We are in talks with the banks and should be able to start disbursing this loan amount from next month. He added, âWith more people benefiting from these loans, the amount collected through monthly installments will increase. This money can then be put back into the system to approve other loans. After a while, this cycle should be able to process most loan applications.
Currently, government quarters are available to most police officers while on duty. However, they have to leave retirement homes. “Several police officers, especially those at the lower echelon, are known to have difficulty buying a house,” one officer said. Of the 2.2 lakh of state police officers, almost 1.91 lakh are lower echelon employees who have difficulty obtaining bank loans.
The agent explained that apart from the relatively straightforward procedure for obtaining a loan approved by the MSPHWC, the interest rate on these loans would be lower than market rates.
âNormally the way banks collect loans is to cover the interest amount first with the installments that are paid. This leads to there being no reduction in the principal amount for a longer period, âthe officer said.
âIn our case, however, we are starting to cover the main amount of the down payments made by the police officer. This lowers the interest rate and reduces the period during which the loan amount is repaid, âexplained the officer. Police housing has been a major problem in Maharashtra with complaints that even government quarters assigned to serving police officers were in a dilapidated condition.
âSeveral of these neighborhoods are being renovated with new neighborhoods like Worli, built over the past two years,â said an officer. In 2015, Chief Minister Devendra Fadnavis said police housing was a priority for him and that the state planned to build nearly 5 lakh houses across the state by 2019 for police personnel.