Section 6 in The Regulations For Disbursement of Loans Under The Middle Income Group Housing Scheme, 1968
6. Eligibility of individuals for loans.
(1)A person desirous of constructing a house for residential purposes within the limits of a city or a municipality or within such areas outside the limits of the city or the municipality as may be specified in the notification under section 354 of the U.P. Nagar Mahapalika Adhiniyam, 1959 (U.P. Act No. II of 1959), or under Section 3 of U.P. Municipalities Act, 1916, as the case may be, shall be eligible for the loan, provided he satisfies the following conditions:(a)that his annual income from all sources is not less than Rs. 7,200 and not more than Rs. 15,000 exclusive of the income of other earning members of the family; the term 'income' in this regard will mean the income of the applicant as assessed for the purpose of income tax;(b)that he dose not already own any house in his own name or in the name of his wife/minor children within the limits of the city or municipality or within such area outside the limits of the city or the municipality where he proposes to construct his house;(c)that he utilises the loan for the construction of a house which is required for his bona fide residential purposes; the loan will not be granted to person who already owns a house within the city or the municipality where he proposes to construct his house with the loan and the grounds that he cannot occupy his existing house because of its already being let out on rent or because it is situated at a place other than the place of his/her work or business, will not be accepted;(d)that he dose not have more than one house in U.P.(e)he has not taken any loan for the construction of a house or purchase of a house under any Housing Scheme of the State or the Central Government either in his own name or in the name of his wife or dependent child; or has not previously availed himself/herself of any financial assistance from the Government for the construction of a house anywhere within India;(f)that, if he is displaced person, the District Relief and Rehabilitation Officer certifies that he has not taken any loan for construction of a house under any of the Schemes of the Relief and Rehabilitation Department; and(g)that the cost of construction of the house (exclusive of the cost of development land) shall not exceed Rs. 35,000;(h)that where a plot is jointly owned by husband and wife the individual income of the applicant (whether husband or wife) shall be within the prescribed income range and the plot and the house to be constructed thereon shall be jointly mortgaged with the Board by the applicant and his/her spouse.(2)Loans can also be sanctioned by the Parishad to persons eligible under this scheme for the purchase also of newly built houses from reliable building companies or other private building agencies with the prior approval of the Parishad; provided that(i)such houses are purchased within a period not exceeding 12 months from the date of completion of construction;(ii)the Parishad is satisfied that the houses are reasonably priced and they are of acceptable standard of technical efficiency (i.e., m regard to durability, safety, etc.); and(iii)the persons who purchase these newly built houses undertake not to sell these for a period of at least 5 years from the date of their purchase.
