Eligibility

• He/She must be a member of an SHG at least one year
• He/She should have a good saving and credit profile
• The group has to certify/guarantee the character and source of income
• He/She should have a saving of Rs.15,000/-towards purchase of land
• He/She should be willing to abide by the terms and conditions of the allottee bond and sign the letter of intent-Rental Agreement.
• Must be living in dilapidated homes in rentals/joint family.

Methodology

This is a joint endeavor of NGO,banks and people's movements.Therefore,the strategy adopted to facilitate this scheme is joint participation from all support providers. The NGO and Banks have got major roles to play in eradicating shortage of housing through the Self Help Groups. For successful attainment of this project the methodology adopted is briefly given below.

Promotion of Activity Group

The NGO will identify the members from groups who do not have own land and shelter. The identified members of the mother groups will constitute an activity group. Each group will have minimum of 15 members and maximum of 25 members. This activity group is formed for the purpose of house construction. This group is called “Save and Build” group.

Savings Mobilization

The member of “Save and Build” group have to save an amount of Rs.1200 to Rs 2000 per month. The savings can be collected on weekly basis also. Each member has to save this amount till the completion of the house. Upon completion of construction of the house they have to increase the savings in tune with the loan repayment –EMI.

Acquisition of Land

Six month after the group formation, the Trust jointly with the homeowner partners will identify the land suitable for construction of houses and purchase the same. The cost of the land has to come from the beneficiaries as savings or other contributions. The land will be purchased in the name of the Trust.

Allottee Bond

Each Home owner partners will enter an agreement called ALLOTEE BOND which is the ownership certificate and agreement the Trust and Homeowner

Site Development and Community Centre

Site development will be jointly done and a community centre will be constructed for the common utility purpose of these homeowners well before commencement of house construction. The Trust will be the custodian of this common facility centre. This will be transferred to the homeowners association after full repayment of the loan.

Construction of Houses

The house construction will be commenced after the documents of this land cleared.

Plan and Estimate

The houses constructed on the project site will be uniform and homeowners are not allowed to deviate from the approved plan. The plan is prepared in consultation with the beneficiary.

Sweat Equity

The concept of “Sweat Equity” has been thoroughly educated. The manual labour contributed by the homeowner partners is called “ Sweat Equity”. It is mandatory that every homeowner of Shalom house has to contribute the required manual labour for the construction the house. Since the homeowner takes up the pain of manual labour, the ownership feeling is strongly generated. The sweat equity reduces the cost of construction.

Cost of construction or Loan

Completion and Dedication

The project will be completed in 6-9 months time from the date of mortgage. On completion, a joint dedication and inaugural ceremony will be conducted there at the site. The village will have a name and the name slab will reflect the support and financing of the bank and Trust.

Repayment and Part Releases

The repayment of loan has to be commenced right from the day of house dedication .The loan repayment period is 15 to 20 years. The homeowner is not entitled to transfer the property or let-out the house or sell, doing any alteration, additions till the loan amount is fully repaid. However, the homeowner is permitted to do the major maintenance and repairs of the house. The property will be transferred to the homeowner/allottee after the loan is fully repaid.