Housing loans for Goa babus get expensive, Opposition slams move

The Opposition in Goa on Friday, slammed the state government's decision to tamper with housing building allowance norms, which enables state government employees to avail subsidised bank loans for construction of personal dwellings.

After a recent decision by the Goa cabinet on Wednesday, resolved to bring the interest levied on the loans on par with existing bank loans, Leader of Opposition Digambar Kamat on Friday, criticised the decision, saying it was based on incorrect assumptions, adding that the "regressive" decision, would shatter dreams of government servants who dreamt of building a home of their own.

"By denying such a benefit to its employees and putting more fiscal hardship on the existing loanees is grossly anti-Goan, as it goes against the fabric of Goan society to pull the rug from below the feet of their fellow citizens and to bring about disruption in the process of someone who is building a home for themselves," Kamat told reporters here.

The house building allowance allows government servants to avail of up to Rs. 36 lakh towards construction of houses at a subsidised rate of interest.

On Wednesday, as part of an austerity drive, Sawant said, that the interest on such loans would be adjusted on par with loans offered by banks, which would stop the practice of the government shelling out the subsidised interest amount and thereby economising on its expenses.

Sawant also said, that apart from state government employees, MLAs too who had availed of loans under the scheme, would have to pay interest rates on par with existing bank rates hence forth.

Kamat however claims, that the government's financial liability in servicing the interest subsidy amounted to only Rs. 80 crore a year, a sum, which the state government ought to be willing to bear in the interest of those on its payroll.

Around 5,000 government employees are currently beneficiaries of the scheme in question.

"Many of these employees have approached me and I find that the decision of the state government to be highly unreasonable, based on incorrect assumptions, without any thought of welfare for its employees and most regressive for the state and its people," Kamat said.

"Now, suddenly stopping the scheme and directing such employees to transfer their loans to a bank, has added up almost double the monthly installment for repayment of the new EMI, leaving nothing in hand," the former Chief Minister also said

( With inputs from IANS )