Andhra Pradesh Housing Board (APHB) plans housing scheme on Hire purchase

The (APHB) has initiated a special housing scheme that would benefit low income groups in Andhra Pradesh. Some of the areas in Hyderabad where this scheme is being implemented are Kukatpally, Chandanagar, Bandlaguda, Nizampet and Red Hills, apart from other locations in the state.

Payments to be made in EMIs:

As per this hire purchase housing scheme, only 40% of the total cost of the apartment need be initially paid by prospective buyers to the APHB. The remaining 60% could be paid in Equated Monthly Installments (EMIs) across 10 years. Moreover, the buyers can also gain possession of the apartment after the initial 40% payment.

1,930 apartments planned for low-income groups:

According to this scheme, the board is planning to construct 1,930 single bedroom apartments in the city having an plinth area of 450 sq.ft. These would include 880 apartments in Kukatpally, 400 apartments in Bandlaguda, 240 apartments in Nizampet, 210 apartments in Chandanagar and 200 apartments in Red Hills.

APHB plans similar scheme for high and mid income groups:

Incidentally, the APHB had earlier taken up similar housing schemes for high and middle income groups in places like Laxminagar, Raviryal as well as in other places. Some of these housing schemes were undertaken as joint venture projects with land being auctioned to save the board from financial crisis.

Hire purchase allows buyers to avoid bank dependency for loans:

As was the practice in the early 1990s, housing projects were taken up under the self-finance scheme where the home buyers had to coordinate with banks or financial institutions for arranging loans. However, under the hire purchase scheme, buyers need not seek loans from banks.  Moreover, buyers also have the option of repaying the 60% balance of the loan to the board in the form of easy EMIs, across 10 years.

Applicants to pay 10% of apartment cost with application:

The APHB has issued a demand survey notification recently for the proposed housing scheme. Accordingly, applicants to this scheme  should pay 10% of the cost of the apartment along with the application form. They can pay the remaining 30% during the construction period of the project, which is ideally about one year.

Reservation for special categories of buyers:

Women would be reserved 30% of the total apartments, while 16% would be reserved for SCs, 6% for STs, 9% for backward classes, 1% for the physically challenged and 3% for defense personnel. Besides, Class IV employees of state and central government firms including those who have retired from service would be given priority. This will be followed by employees of state and central public sector undertakings, ministerial staff upto superintendents, outsourced employees of government and related organisations followed by the general public.

Withdrawal allowed within 45 days:

Applicants are free to withdraw from the scheme after allotment within 45 days. However, if the allottee fails to pay 30% of the remaining initial amount, he/she will have to forfeit the 10% of the initial amount that he/she pays along with the application.