Rural Housing Interest Subsidy Scheme:- The government implements a variety of schemes in order to offer houses to the country’s population. The government has established the Pradhan Mantri Awas Yojana with the goal of providing housing to everyone by 2022. Many residents do not have their own homes and are therefore not eligible for the Pradhan Mantri Awas Yojana. The Government of India has created the Rural Housing Interest Subsidy Scheme 2024 to enable simple access to institutional loans for all of these citizens. This post will go over all you need to know about the Rural Housing Interest Subsidies Scheme 2024. By reading this post, you will learn everything you need to know about the application process and the list of beneficiaries.
Table of Contents
Rural Housing Interest Subsidy Scheme 2024
Rural Housing Interest Subsidy Scheme was launched by the Indian government in order to offer houses to residents who are not covered by the Pradhan Mantri Awas Yojana. All such needy households will have easy access to institutional loans under this scheme for the construction or alteration of their homes. This scheme will only apply to properties in rural regions. The pucca houses that are built or renovated under this program must meet the norms and requirements set forth in the country’s current construction and structural safety guidelines. On the amount of loan obtained under this scheme, the government will pay an interest subsidy.
Pradhan Mantri Awas Yojana List
RHISS Subsidy Scheme Details in Highlights
| Name Of the Scheme | Rural Housing Interest Subsidy Scheme |
| Launched By | Government Of India |
| Beneficiary | Citizens Of India |
| Objective | To Provide Pucca House |
| Official Website | Click Here |
| Year | 2024 |
Rural Housing Interest Subsidy Scheme Objective
The major goal of the Rural Housing Interest Subsidy Scheme is to provide financing for the building or modification of housing units at a lower interest rate. Citizens who live in rural areas and are not covered by the Pradhan Mantri Awas Yojana will be eligible for this scheme’s benefits. The citizens’ level of living will improve as a result of the execution of this strategy. Aside from that, citizens will become self-sufficient. With the implementation of this scheme, recipients would be given pucca dwellings. The Ministry of Rural Development will be in charge of putting the plan into action.
Subsidy Under Rural Housing Interest Subsidy Scheme
| Particulars | RHISS |
| Interest Subsidy (% p.a.) | 3.00% |
| Maximum Housing Loan Tenure (in years) | 20 |
| Eligible Housing Loan Amount for Interest Subsidy (Rs) | 2,00,000 |
| Discount Rate for NPV calculation of interest subsidy (%) | 9.00% |
Some Subsidy-Related Information
- The beneficiary will get a 3% interest subsidy on the principal amount of the loan.
- The subsidy will be available for a maximum loan amount of 2 lakh, regardless of the size of the house loan, for a period of 20 years or the full term of the loan, whichever is shorter.
- If the home loan amount is less than Rs 200000, the subsidy will be calculated on the actual loan amount.
- The net present value of the subsidy will be computed for the duration of the loan using a national discount rate of 9%.
- The interest subsidy’s net present value will be subtracted from the main loan amount of the beneficiary
Rural Housing Interest Subsidy Scheme Implementation Methodology
- The interest subsidy will be given only for the amount of the home loan.
- A nonsubsidized rate will apply to any amount of housing loan that exceeds the set maximum.
- The net present value of the interest subsidy will be credited to the beneficiary’s home loan account through a primary lending institution.
- The national housing bank will serve as the central nodal agency for channeling subsidies to lending institutions and monitoring the scheme’s progress.
- By establishing a memorandum of agreement, the principal lending institution can register with only one CNA.
- CNA will be in charge of ensuring that the initiative is properly implemented and monitored.
- CNA will give the Ministry of Rural Development periodic monitoring inputs in the form of monthly and quarterly reports.
- If a borrower has obtained a home loan and received an interest subsidy under any Indian government scheme, and then moves to another PLI for a balance transfer, the borrower will no longer be eligible for the interest subsidy.
Process For Release of Central Subsidy
- At the start of the Rural Housing Interest Subsidy Scheme 2024, the government will provide an advance for subsidy payment to CNA.
- On a quarterly basis, the remaining amount of the interest subsidy will be released to the CNA after the previous amount has been used up to 70%.
- The central nodal agency will transfer the subsidy amount directly based on the loan disbursement to the beneficiaries.
- The PLI will credit the net present value of the interest subsidy to the beneficiary’s account after deducting it from the beneficiary’s principal loan amount.
- On the balance of the principal loan amount, beneficiaries must pay EMIs based on lending rates.
- For administrative expenses, 0.25 percent of the total money payout by the central nodal agency to the PLI shall be given to the central nodal agency.
- PLI is not allowed to charge the beneficiary a processing fee under the scheme.
- In lieu of the processing fees for the borrower’s housing loan, the PLI would get a lump sum payment of Rs 2000 per sanction application.
Monitoring And Implementation of The Scheme
- The Ministry of Rural Development, Government of India, will execute and manage this scheme through a central nodal agency.
- The State Government and the State Bankers Committee shall supervise this programme at the state level using the existing institutional mechanisms.
- If a beneficiary provides false information in order to receive benefits from this scheme, he or she may face legal action under the applicable law.
- The Ministry of Rural Development’s decision will be regarded final under the scheme.
Rural Housing Interest Subsidy Scheme Benefits and Features
- Rural Housing Interest Subsidy Scheme 2024 was launched by the Indian government in order to offer to house to residents who are not covered by the Pradhan Mantri Awas Yojana.
- All such needy households will have easy access to institutional loans under this scheme for the construction or alteration of their homes.
- This scheme will only apply to houses in rural regions.
- The pucca houses that are built or remodeled under this program must meet the norms and requirements set forth in the country’s current construction and structural safety guidelines.
- On the amount of loan obtained under this scheme, the government will pay an interest subsidy.
- The citizens’ level of living will be improved as a result of this strategy.
- With the execution of this scheme, citizens will become self-sufficient.
Rural Housing Interest Subsidy Scheme Eligibility Criteria
- The applicant must be an Indian permanent resident.
- The applicant must reside in a rural location.
- The applicant must not be the owner of a pucca house.
- The applicant cannot be a beneficiary of the Pradhanmantri Awas Yojana.
Required Documents
- Aadhar Card
- Residence certificate
- Income certificate
- Passport size photograph
- Mobile number
- Email id etc
How to Apply for Rural Housing Interest Subsidy Scheme
- First and foremost, you must visit the Ministry of Rural Development’s nearest office.
- From there, you must complete the Application form.
- In this application form, you must fill in all of the essential information.
- Now you must attach all of the necessary documents.
- After that, you must press the submit button.
- You can apply for the Rural Housing Interest Subsidy Scheme 2024 by following this procedure.