Ministry of Rural Department, Central govt. has launched PMAY-G Home Loan Interest Subsidy Scheme – RHISS. Subsequently, this Rural Housing Interest Subsidy Scheme (RHISS) will provide necessary resources to the families which are not covered under PMAY-G. Accordingly, this scheme will provide easy and cheap access for institutional loans at the subsidized interest rates for the construction or modification of their houses.
Central Nodal Agency – Ies is responsible to implement this Interest Subsidy scheme. All the rural families whose name is not on the wait-list for PMAY-G can apply for this scheme. Central Nodal Agency (CNA) will approve Primary Lending Institutions (PLIs) to simplify the loan process. This scheme will provide coverage to all the Indians except the towns under Census 2011 and towns under PMAY (Urban).
RHISS will provide this loan to construct a new house or to modify a Kuccha house into a Pucca House. Moreover, these pucca houses should comply with the standards and can withstand normal wear and tear, natural disasters for at-least 30 years.
Important Features of PMAY-G Home Loan Interest Subsidy Scheme – RHISS
The highlights and details of RHISS are as follows:-
- Beneficiaries will get home loans for construction/ modification of the houses at an interest subsidy of 3 per cent.
- RHISS will provide a maximum loan amount of Rs 2,00,000 for a tenure of 20 years or full duration of the loan.
- However, if loan amount is less than Rs 2 lakh, then subsidy is calculated on the actual amount of the loan.
- Accordingly, Govt. will calculate Net Present Value (NPV) of subsidy at a discount rate of 9% for the duration of loan in addition to the interest charged at the time of loan.
- Subsequently, RHISS will release the subsidy to the Primary Lending Institution (PLIs).
- The process flow of this scheme is shown in the figure given below:-
Eligibility and Coverage
a) All the rural households whose name does not appears in the permanent wait list of Pradhan Mantri Awas Yojana – Gramin are eligible to apply.
b) RHISS will cover all the citizens of the country but will exclude those who belongs to the statutory towns of Census 2011 and towns which are covered under PMAY-Urban.
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:-
- 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.
|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|
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.
— For any further query, candidates can see the details of Rural Housing Interest Subsidy Scheme (RHISS) using the link given below:-
Details of RHISS