The Ministry of Rural Development (MoRD) and the National Housing Bank (NHB) jointly hosted the “PMAY-G Reform Samvad” in Lonavala to discuss institutional financing for rural housing under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) scheme. According to the release, the event brought together state departments, international organisations, and lending institutions including Housing Finance Companies, Regional Rural Banks, Small Finance Banks, and Micro Finance Institutions.
During the stakeholder dialogue, lenders expressed willingness to design dedicated loan products for PMAY-G households, noting that government assistance and milestone-based construction tracking lower the risks of lending. Participants discussed barriers such as unclear land titles, high transaction costs, and seasonal incomes. To address these, they recommended dedicated rural housing loan products ranging from ₹2 to 5 lakh, credit guarantee support, interest subvention, land and property reforms by states, and community-based delivery through self-help groups.
The Ministry stated it will examine the suggestions emerging from the consultation in consultation with NHB, state governments, and lending partners. The discussions aimed to help rural families complete quality homes without relying on costly informal borrowing.
Source
Press Information Bureau, Government of India, “Lending Institutions propose institutional financing of PMAY-G beneficiaries at MoRD–NHB “PMAY-G Reform Samvad” in Lonavala: States, HFCs, SFBs, MFIs and RRBs deliberate a roadmap for affordable institutional credit for rural housing”. Read the original release.
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