PMAY-G Home Loan Interest Subsidy Scheme (RHISS) for Rural Households

Published Date - 12 February 2018 05:00:29 Updated Date - 12 February 2018 05:01:14

The lack of proper housing facilities in the country, especially in the rural areas is a cause of concern for the central government. Many schemes have been developed and launched in the nation, which are directed towards addressing this issue. Another addition to this list is the PMAY-G Home Loan Interest Subsidy Scheme. It will also allow rural people to get their names enrolled so that they can get required credit from the central government and develop their housing conditions.

Launch details of the scheme

The official launch of this scheme took place on 24th of Jan 2017. All ministers of the Ministry of Rural Department were present during the official declaration of this program that was done by Prime Minister of India Narendra Modi. National Housing Bank is the body that has been selected by the central authority to perform the duties and responsibilities of the all-important Central Nodal Agency.

Key features of the scheme

  1. Empowering the rural candidates – People living in rural areas has always complained about the lack of housing facilities. In order to empower these people and provide them with a chance to get a permanent home, the central government has implemented this scheme.
  2. Attaining a credit from the financial institutions – Building or expanding the house will require funds, which the rural candidates cannot arrange on their own. Thus, the central government has stepped up by offering of no more than 2 lakhs from selected banks or financial institutes.
  3. Construction or expansion of the house – The money that the candidates will receive must be utilized for construction of a permanent home. In case they already have a small pucca house, the money can be used for expansion of the existing building.
  4. Getting subsidy on the interest rates – It is not possible for the poor rural folks to pay high rates of interest. Thus, the central government has decided to offer them a reduction in the interest rate. A subsidy of 3% will be offered to them.
  5. Discount on NPV – Not all individuals will require the full 2 lakhs for making the house. In such a situation, where the applicants have acquired a credit that is less 2 lakhs, they will be charged with an interest that will be calculated at 9% rate.
  6. Tenure of loan repayment – As per the guidelines of this program, any villager who takes the loan under this scheme will have to repay the full credit amount by the end of 20 years.
  7. Funded by the central government – As this welfare housing program is the brain child of the central government, so it alone has the responsibility of arranging money to implement and monitor this scheme will success.

Eligibility of the scheme

  1. Not included in PMAY – Gramin program – According to the draft of this scheme, it has been developed for the people who have failed to enroll their names in the PMAY – Gramin scheme. They must not have their names even in the waiting list.
  2. Must not be residents of statutory settlements – Only those candidates who do not reside in towns and villages with a statutory status, will be allowed to apply for this housing welfare scheme.

Coverage area of the scheme

According to the details mentioned in the official documents if this scheme, every resident of rural areas will come under the coverage of this housing program. As for the coverage, all villages or towns that have been covered under PMAY – Urban program or the areas which have been given the status of statutory towns by the Census Department in 2011 will not be brought under the umbrella of this program.

Details of interest subsidy

  1. Subsidy for 2 lakhs – Any candidate who has acquired a full credit of 2 lakhs will get a subsidy of 3% on the interest rate.
  2. Subsidy less than 2 lakhs – Any candidate who has taken a credit of less than 2 lakhs will have to pay an interest that will be calculated at a rate of 9% on the total amount.

Process of implementing the scheme

  1. The responsibility to monitor this scheme and take pertinent verdicts for the ease of operations rests with the Central Nodal Agency. The central government has decided that the National Housing Bank will be given this all important task of the CNA.
  2. It will make a list of all financial institutions, which will function as the Primary Lending bodies. Identified Commercial banks, Housing Finance Companies, Urban Co-operative banks, Small Finance banks, State Co-operative banks, Regional Rural banks and NBFC will be given this task.
  3. All reports regarding the implementation and progress of this scheme will be sent to Rural Development Ministry by the Central Nodal Agency on a regular basis.
  4. Once the central authority dispatches the money in the name of the Central Nodal Agency, it will be accordingly distributed to the PLIs.
  5. Once these lending agencies calculate the subsidy, it will be deducted from the main credit sum.
  6. All the lending companies will get a sum of Rs. 2000 from the central government. They will get this amount for every beneficiary they serve.

This welfare housing scheme will come in handy for those rural residents who have not been able to get their names enrolled in the PMAY – Gramin scheme. With the implementation of this program, the central government will be able to speed up the task of providing permanent houses to all those who do not have it.

Highlights at a glance

Features

Rural Housing Interest Subsidy Scheme (RHISS)

Rate of Interest Subsidy

3%

Maximum Loan Duration

20 years

Minimum eligible Loan Amount for Interest Subsidy

Rs 2 lakh

Rate of Discount for Interest subsidy to calculate NPV

9%

Implementation of PMAY-G Home Loan Interest Subsidy Scheme

  • National Housing Bank is the Central Nodal Agency (CNA) to successfully implement this scheme.
  • Subsequently, CNA will provide subsidy to the Primary Lending institutions (PLIs) and will also monitor the progress.
  • Accordingly some of the PLIs are as follows:-
 

Scheduled Commercial banks

Housing Finance Companies

Urban Co-operative banks

State Co-operative banks

Regional Rural banks (RRB)

Small Finance banks

NBFC-Micro Finance Institutions

Other Institution identified by CNA

  • Moreover, CNA will provide reports to the Ministry of Rural Development on monthly or quarterly.
  • All the beneficiaries who are taking the benefits of other govt. schemes cannot apply under this scheme.

Release of Central Subsidy for PMAY-G Home Loan Interest Subsidy Scheme

— Firstly, the central govt. will release an advance to the Central Nodal Agencies (CNA). After 70% of the utilization of the amount, CNA will get the remaining amount of the interest subsidy on the basis of certificates submitted by PLIs to CNA as per the format given below:-

— Subsequently, CNA will distribute subsidy amount to PLIs which will pass the subsidy amount to the RHISS beneficiaries.
— Moreover, PLIs will calculate the NPV amount to the RHISS beneficiaries and deduct it from the principal loan amount.
— CNA will give Rs 2000 per application to the PLIs. Furthermore, PLIs will not take any processing charge from the beneficiaries.

References

— For any further query, candidates can see the details of Rural Housing Interest Subsidy Scheme (RHISS) using the link given below:-
Details of RHISS

 


tapas chakraborty

27-02-2018

i want to apply for the RHISS under PMAY-G but how to approach and where to arrroach for the scheme.kindly convey me

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