The Lucknow Development Authority (LDA) will sign a Memorandum of Understanding (MoU) with Punjab National Bank (PNB) on Saturday to facilitate housing loans in its upcoming housing schemes. This is the first time when the LDA will sign such agreement with a bank.

The MoU is being signed with the PNB, said officials, because most of the nationalised banks were not giving loans for the LDA properties. The LDA authorities said initial beneficiaries of the MoU will be the allottees of 10,000 Economical Weaker Section (EWS) category houses that the authority is going to construct in the ongoing fiscal year. “Each of such EWS category house will cost Rs 2.95 lakh and the PNB will provide loan to the allottees,” said Mukesh Kumar Meshram, LDA Vice-Chairman.

Finance controller of the LDA, Avdhesh Kumar, said according to the MoU, title deed of the property will be signed by three parties — the allottee, LDA and the PNB. A few weeks ago, the LDA had invited offers from various nationalised banks to sign the MoU on the issue but only PNB responded. “Other nationalised banks can still approach us,” Kumar added.