The Maharashtra government has approved a massive financial assistance package worth Rs 1768.08 crore for the police housing advance scheme. The decision was taken through a government resolution (GR) issued by the Home Department to facilitate house-building and repairing loans for police personnel through the Maharashtra State Police Housing and Welfare Corporation.
What is PEMI?
According to the GR, the loan amount will be raised from Maharashtra State Co-operative Bank Ltd under the Principal Equated Monthly Instalment (PEMI) system at an interest rate of 7.85 per cent. So far, the state has approved financial assistance for a total of 9781 police personnel under this scheme who applied for the PEMI loan.
Officer Speak
A police officer said, “We would face difficulties taking loans for our house repairs. But now we will get a loan easily under this scheme.”
Another police officer said, “Most of the bank’s interest rates are too high, which is not affordable for us. Thanks to the Maharashtra Police and the DG [Director General] for approving these loans.”
‘I thank the CM’
Speaking with mid-day Maharashtra Police Boys Association president Rahul Dubale said, “I was regularly requesting the government to help police personnel financially as they are getting difficulties with loans. I am very happy, and I thank CM Devendra Fadnavis.”
Loan conditions
>> The Maharashtra State Police Housing and Welfare Corporation has been instructed to ensure that expenditure remains within the limits of available funds and that financial planning is carried out strictly as per allocated budgets
>> The resolution also states that the government may consider amendments to the scheme in the future to reduce the interest burden on the state exchequer and regulate the number of beneficiaries
>> Additionally, all loan holders will be required to obtain loan insurance or term insurance coverage
