Tue Aug 26 14:37:38 UTC 2025: **Summary:**

The Kerala government has approved a loan of ₹1,500 crore from HUDCO, guaranteed by the government, to complete ongoing houses under the LIFE project. The loan is needed due to a shortfall in funds that prevented the completion of the target of one lakh houses in the 2024-25 financial year. Currently, 1,27,601 houses are at various stages of construction, requiring ₹1,100 crore. An additional ₹400 crore is needed for aid to local bodies providing houses for SC/ST beneficiaries. ₹750 crore will be availed this year, and the rest in 2026-27. The loan will be repaid from the development fund of local bodies over 15 years.

**News Article:**

**Kerala Secures ₹1,500 Crore Loan to Revive LIFE Housing Project**

**THIRUVANANTHAPURAM, August 26, 2025** – The Kerala government has greenlit a substantial loan of ₹1,500 crore from the Housing and Urban Development Corporation Limited (HUDCO) to rescue the LIFE project, a crucial initiative aimed at providing housing for all. The loan, secured with a government guarantee, comes as a direct response to funding shortages that hampered the project’s progress in the 2024-25 financial year.

Originally, the government aimed to complete one lakh houses during the fiscal year. However, due to financial constraints, this target was not met. Now, a significant 1,27,601 houses are at various stages of construction, including those carried over from the previous year, along with the 31,679 houses planned for the current fiscal year. An estimated ₹1,100 crore is required to complete these ongoing constructions.

In addition to the construction costs, ₹400 crore is earmarked to support local bodies in their efforts to provide housing for Scheduled Castes and Scheduled Tribes beneficiaries. The government plans to draw down ₹750 crore of the total loan this year, with the remaining amount scheduled for 2026-27.

The loan repayment will be sourced from the development funds of local bodies over a period of 15 years. This move signals the Kerala government’s commitment to fulfilling its housing promise and addressing the needs of its citizens, despite facing financial challenges.

The Hindu – All rights reserved

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