Rural Housing Interest Subsidy Scheme 2024- Complete Information

As you all are available the central government has launched the Housing for All by 2022 initiative. Under the initiative, the government is providing various kinds of financial social security benefits so that all the citizens of the country can have houses of their own. For this purpose, the government has launched the Pradhan Mantri Awas Yojana. Through this scheme financial assistance has been provided to the beneficiaries. The Rural Housing Interest Subsidy Scheme is a component of the Pradhan Mantri Awas Yojana. Under this scheme interest subsidy will be provided on the institutional loan. This article will cover complete details regarding the scheme. You will get to know how you will be able to apply under this scheme. Other than that you will also get details regarding its objective, benefits, features, eligibility, etc

About Rural Housing Interest Subsidy Scheme 2024

The Government of India has launched a Rural Housing Interest Subsidy Scheme. Under this scheme, beneficiaries will get access to institutional loans for the construction or modification of their dwelling units. All the rural households of Pradhan Mantri Awas Yojana will get the benefit of this scheme. This scheme will cover the entire country excluding these statutory towns as per the census 2011 and towns notified subsequently for the coverage of Pradhan Mantri Awas Yojana urban. Under this scheme support for the modification of existing dwellings and construction of pakka houses as per the eligibility criteria will be provided to the beneficiaries. This interest subsidy will be up to 3% per annum. This scheme will improve the standard of living of the beneficiaries. Other than that beneficiaries will also become self-dependent.

Also Read: Affordable Rental Housing Scheme

Particulars of the Rural Housing Interest Subsidy Scheme

Particulars	Details
Interest subsidy	3%
Maximum housing loan 10 year	20
Eligible housing loan amount for interest subsidy	2,00,000
Discount rate for NPV calculation of interest subsidy	9%

Key Highlights Of Rural Housing Interest Subsidy Scheme 2024

Name of the scheme	Rural Housing Interest Subsidy Scheme 2024
Launched by	Government of India
Beneficiary	Citizens of India
Objective	To provide interest subsidy
Year	2024

Objective Of Rural Housing Interest Subsidy Scheme 2024

• The main objective of the Rural Housing Interest Subsidy Scheme 2024 is to provide interest subsidy on the loans taken for the construction of houses
• Under this scheme interest subsidy of up to 3% per annum will be provided to the beneficiary
• So that all the citizens will be able to afford to construct their own house
• With the implementation of this scheme, the standard of living of the beneficiaries will be improved
• Other than that the beneficiaries will become self-dependent

Also Read: Credit Linked Subsidy (CLSS) Scheme

Implementation of the Scheme

• The net present value of the interest subsidy will be credited upfront to the housing loan account of the beneficiary through a primary lending institution
• The National Housing Bank will be identified as the Central nodal agency to channel the subsidy
• The primary lending institution will identify the scheduled commercial bank, housing Finance company, regional rural bank, State cooperative Bank, urban cooperative Bank, small finance Bank, etc
• The CNA will be responsible for ensuring proper implementation and monitoring of the scheme
• If the bore has taken a housing loan and availed interest subsidy under any other government scheme then such beneficiary will not be eligible to take benefit of the scheme

Mechanism for release of Central subsidy

• The CNA will release advance subsidy payment to start the scheme
• A subsequent amount of interest subsidy will be released after 70% utilization of the earlier amount every quarter
• Based on the loan disbursed the authority will release the subsidy amount to the primary lending institution directly based on the claim submitted on the total loan
• The net present value of the interest subsidy will be credited to the primary landing institution to the beneficiary account upfront by deducting from the principal loan amount of the beneficiary
• 0.25% of the total fund disbursement by CNA to the primary lending institution will be paid to CNA for their administrative expenses
• For processing housing loans the primary lending institution will get Rs 2000 per sanction application

Steps in Rural Housing Interest Subsidy Scheme 2024

• Home loan application by an individual
• Primary lending institution identified by the central nodal agency
• Sanction and disbursement of housing loans and scrutiny for the eligibility of loan accounts for interest subsidy
• Checking the eligibility
• Submitting the claims for The eligible beneficiaries to CNA
• Appraisal and approval of claims by CNA
• Release of subsidy amount by CNA two primary lending institutions directly based on the eligibility of claims from the total claims submitted
• Interest subsidy credited by PLI in loan account with communication to the beneficiary along with a reduction in EMI payment

Eligibility Criteria

• Applicant must be a permanent resident of India
• The applicant must be from a rural area
• The beneficiary must not be on the permanent weightless for Pradhan Mantri Awas Yojana
• If the beneficiary has availed the benefit of a similar scheme then he or she will not be eligible to get the benefit of this scheme

Required Documents

• Aadhar Card
• Residence certificate
• Passport size photograph
• Mobile number
• Email id
• Income certificate etc

Procedure to Apply Under Rural Housing Interest Subsidy Scheme 2024

• First of all, you have to go to the bank from which you have taken a loan
• You have to ask for the Rural Housing Interest Subsidy scheme application form
• After that, you have to fill in all the required details on this application form
• Now you have to attach all the required documents
• After that, you have to submit this form to the bank
• By following this procedure you can apply under the rural housing interest subsidy scheme

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