Rural Housing Interest Subsidy Scheme (RHISS) 2026 - Check Eligibility, Subsidy Rate, Tenure and Claim Form

What is Rural Housing Interest Subsidy Scheme (RHISS)

Rural Housing Interest Subsidy Scheme (RHISS) is a central housing scheme run by the Ministry of Rural Development to provide support to rural families that are not covered under Pradhan Mantri Awas Yojana Gramin (PMAY-G). The scheme offers a 3% interest subsidy on home loans up to Rs 2 lakh for a tenure of 20 years, so it becomes easier for rural households to build a new pucca house or improve an existing kutcha house.

National Housing Bank (NHB) works as the Central Nodal Agency for this scheme and handles the interest subsidy to Primary Lending Institutions (PLIs). This article explains who can apply, the eligibility, subsidy rate, tenure, discount, how to fill the claim form and other important details of the scheme.

To make sure housing for all, the central government launched Pradhan Mantri Awas Yojana Gramin (PMAY-G), which came into effect from 1st April 2016. The PMAY Gramin scheme gives housing support to rural families who are living in zero, one or two room kutcha houses as per the Socio Economic Caste Census (SECC) 2011 data and verified by the Gram Sabha. PMAY-G covers the most at-risk section of the rural population and gives them housing support.

Since the aim of the government is to provide housing for all, it is also needed to make sure enough resources are available for households that are not covered under PMAY-G. In this direction, the Ministry of Rural Development has come up with Rural Housing Interest Subsidy Scheme. RHISS gives easy and cheap access to institutional loans for rural households that are not covered under PMAY-G, for building or improving their dwelling unit.

RHISS provides a loan to rural households at a subsidized interest rate so they can build or improve their dwelling unit.

Highlights of Rural Housing Interest Subsidy Scheme (RHISS)

Scope of Rural Housing Interest Subsidy Scheme (RHISS)

PMAY Gramin for rural areas was launched with the aim of providing a pucca house with basic amenities to all houseless and rural households living in kutcha houses. To reach the aim of housing for all, around 2.95 crore houses would be built. PMAY-G covers those rural families who are homeless or living in 0, 1 or 2 room kutcha houses as per SECC 2011 data.

But there are many rural families who live in a kutcha house with more than 2 rooms, or a pucca house with one or two rooms. These households also need support to build a pucca house or improve their dwelling units. To give enough resources to those families who are not covered under PMAY-G, a new RHISS has been launched. Rural Housing Interest Subsidy Scheme gives easy access to institutional loans for all such needy households for building or improving their dwelling units.

The group of beneficiaries who can receive the central support under RHISS includes any rural household that does not appear on the permanent wait list for Pradhan Mantri Awas Yojana Gramin (PMAY-G). The RHISS has been made operational and aims to help rural households build houses or improve their existing dwelling units.

Beneficiaries and Coverage of Rural Housing Interest Subsidy Scheme (RHISS)

All rural households whose name does not appear on the permanent wait list of Pradhan Mantri Awas Yojana Gramin are eligible to apply for this scheme. The coverage details are given below.

• Beneficiaries - All rural households whose name does not appear on the permanent wait list of Pradhan Mantri Awas Yojana Gramin are eligible to apply.
• Exclusion - RHISS covers all citizens of the country but will exclude those who belong to the statutory towns of Census 2011 and towns that are covered under PMAY-Urban.
• RHISS provides support for building existing dwelling units and building pucca houses as per the eligibility rules, with basic civic infrastructure like water, sanitation and electricity.

Definition of Pucca House under Rural Housing Interest Subsidy Scheme

The pucca houses built or improved under RHISS should follow the norms and standards given in the existing guidelines on construction and structural safety in the country. A pucca house is one that can withstand normal wear and tear due to use and natural forces, with proper maintenance for at least 30 years. The roof and wall of the house should be strong enough to handle the climatic conditions of the place where the beneficiary lives, and should include disaster resistant features where needed to handle earthquakes, cyclones, floods and so on.

Primary Lending Institutions (PLIs) for RHISS Scheme

Central Nodal Agency (CNA), identified by the Ministry for running the Interest Subsidy Scheme for Rural Housing, will carry out this scheme. CNA will give the subsidy to the Primary Lending Institutions (PLIs) and will also monitor the progress. Some of the PLIs are given below.

• 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 institutions identified by CNA
• Any other institutions identified by the Central Nodal Agency and approved by the Ministry of Rural Development

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

Interest Subsidy Features under Rural Housing Interest Subsidy Scheme

Beneficiaries who take housing loans from Banks, Housing Finance Companies and other similar notified institutions, for building or improving pucca houses in rural areas, would be eligible for the interest subsidy with the following features.

The interest subsidy will be at the rate of 3% on the principal amount of the loan for the beneficiary. The subsidy is allowed for a maximum loan amount of the first Rs. 2 lakh, no matter the size of the housing loan, for 20 years or the full period of the loan, whichever is less. If the housing loan is less than Rs 2 lakh, the subsidy is calculated on the actual loan amount.

The Net Present Value (NPV) of the subsidy is calculated based on a notional discount rate of 9% for the period of the loan and the interest charged at the time the loan is taken, and the upfront subsidy is released to the Primary Lending Institution (PLI).

The NPV of the interest subsidy given to the PLI is deducted from the principal loan amount of the beneficiary, who then pays interest to the PLI at an agreed documented rate, fixed or floating, on the effectively reduced loan amount for the rest of the loan period. The agreed documented rate that the beneficiary pays may vary from bank to bank. The process flow of the scheme is given below.

Implementation of Rural Housing Interest Subsidy Scheme

The interest subsidy is available only for the housing loan amount mentioned above, and any extra amount of the housing loan beyond that limit will be at a non-subsidized rate. The main points of the implementation are given below.

• Net present value of the interest subsidy is credited upfront to the housing loan account of the beneficiary through the PLI, which results in a reduced effective loan and Equitable Monthly Installment (EMI).
• National Housing Bank (NHB) has been identified as the Central Nodal Agency (CNA) to channel this subsidy to the lending institutions and to monitor the progress. The Ministry may notify other institutions as CNA in the future.
• Primary Lending Institutions (PLIs) identified as Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks, NBFC MFIs, or any other institution identified by the Ministry, can register with only one CNA by signing an MoU as per Annexure 2 of the RHISS guidelines.
• CNA will be responsible for the proper implementation and monitoring of the scheme and will put in place the right mechanisms for the purpose. CNA will provide regular monitoring inputs to the Ministry of Rural Development through quarterly and monthly reports or as required.

If a borrower who has taken a housing loan and availed the interest subsidy under any other scheme of the Government of India later switches to another PLI for a balance transfer, such a beneficiary will not be eligible to claim the interest subsidy again.

Mechanism for Release of Central Subsidy

An advance for the subsidy payment is released to the CNA(s) at the start of the scheme. The next amounts of the interest subsidy are released to the CNA(s) after 70% use of the earlier amounts, on a quarterly basis, and based on the use and end use certificates submitted by the PLIs to the CNAs, as per the format given in Annexure 3.

Based on the loan given by a PLI to RHISS beneficiaries, the CNA will release the subsidy amount to the PLIs directly based on the claims submitted on the total loans given. The NPV of the interest subsidy is credited by the PLI to the beneficiary's account upfront by deducting it from the principal loan amount. The beneficiary pays the EMI as per the lending rates on the remaining principal loan amount. 0.25% of the total funds released by the CNA to the PLIs is paid to the CNA for its administrative expenses. In place of the processing fee for the housing loan for the borrower under the scheme, the PLI is given a lump sum amount of Rs 2000 per sanctioned application. PLIs will not take any processing charge from the beneficiary under the scheme.

Monitoring and Implementation of the Scheme

RHISS is implemented and monitored by the Ministry of Rural Development, Government of India through the Central Nodal Agency. In addition to the state government, the State Level Bankers Committee (SLBC) will monitor the scheme in the state through its existing institutional mechanism. In case of any false declaration by the beneficiary under the scheme, she or he would be open to legal proceedings under the relevant laws. All construction and improvement would be geo-referenced, time and date stamped, and captured on the AwaasSoft through the AwaasApp. The decision of the Ministry of Rural Development shall be final under the scheme.

Overview of PMAY-G Home Loan Interest Subsidy Scheme - RHISS

The highlights and details of PMAY-G Home Loan Interest Subsidy Scheme - RHISS are given below.

1. Beneficiaries will get home loans for building or improving their houses at an interest subsidy of 3%.
2. RHISS provides a maximum loan amount of Rs 2,00,000 for a tenure of 20 years or the full duration of the loan.
3. If the loan amount is less than Rs 2 lakh, then the subsidy is calculated on the actual amount of the loan.
4. Government will calculate the Net Present Value (NPV) of the subsidy at a discount rate of 9% for the duration of the loan, along with the interest charged at the time of the loan.
5. RHISS will release the subsidy to the Primary Lending Institution (PLIs).
6. The process flow of this scheme is shown in the figure given below.

Official Links and Documents

For any further query, candidates can check the official details of Rural Housing Interest Subsidy Scheme (RHISS) on the National Housing Bank website at nhb.org.in RHISS page. The full scheme guidelines can be downloaded from RHISS Guidelines in English (PDF). The list of Primary Lending Institutions that have signed the MoU with NHB is available at updated list of PLIs (PDF). The RHISS mobile app can be downloaded from the Google Play Store.