Section 7 in The Regulations For Disbursement of Loans Under The Middle Income Group Housing Scheme, 1968
7. Amount of loan.
(1)(a)The amount of the loan shall be restricted to eighty per cent. of the cost of construction of the house proposed to be constructed or purchased inclusive of the value of the land subject to a maximum of Rs.25,000 per house.(b)No assistance shall be admissible towards cost of land and/or construction of a house in a colony of which the layout, has not been approved by the competent authority; and no loan assistance shall be granted in those cases where construction the house has been commenced before the loan is sanctioned by the Parishad.(2)An advance (out of the approved house-building loan) may be permitted by the sanctioning authority to an applicant for the purpose of completing the purchase of a developed plot of land for the construction of house where he has already paid 50 per cent, of the cost from his own resources; provided - (i) the amount already paid by the applicant towards the cost of the plot is not less than 25 per cent of the total house-building loan applied for by him and/or approved by the Parishad; and (ii) the total amount of loan for the construction of house and purchase of land therefor does not exceed Rs. 25,000.
