Kendriya Sainik Board runs the Financial Assistance as Interest Subsidy on Home Loan scheme for war widows, war bereaved families, war disabled personnel, and attributable peacetime casualties. The scheme reimburses 50% of home loan interest up to ₹1 lakh for a maximum of five years.
This benefit is funded through the Armed Forces Flag Day Fund and helps eligible families reduce their housing loan burden. The subsidy is paid half-yearly directly to the beneficiary bank account.
Financial Assistance as Interest Subsidy on Home Loan
The Kendriya Sainik Board (KSB), under the Department of Ex-Servicemen Welfare, Ministry of Defence, provides this interest subsidy to support families of defence personnel who made the ultimate sacrifice or suffered disabilities during service. The scheme covers home construction loans from banks, government or public sector undertakings, LIC, GIC, and HUDCO.
Eligible beneficiaries receive 50% reimbursement of the interest charged on their home loan, calculated on a maximum loan amount of ₹1,00,000. The benefit continues for up to five years or until the loan is fully repaid, whichever comes first. Payments are made half-yearly through ECS to the registered bank account.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Financial Assistance as Interest Subsidy on Home Loan |
| Level | Central |
| Scheme For | Individual |
| Beneficiary States | All |
| Category | Banking, Financial Services and Insurance, Housing & Shelter, Social welfare & Empowerment |
| Target Beneficiaries | War widows, war bereaved families, war disabled personnel, attributable peacetime casualties |
| Sub Category | Loan, Financial assistance, Housing |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Defence |
| Nodal Department | Department of Ex-Servicemen Welfare |
| Funding Source | Armed Forces Flag Day Fund (AFFDF) |
| Application Mode | Online via KSB portal |
| Official Website | ksb.gov.in/interest-subsidy-on-home-loan.htm |
Benefits
The scheme offers targeted financial relief to reduce housing costs for eligible families. Key benefits include:
| Benefit Feature | Details |
|---|---|
| Interest Subsidy | 50% of the interest amount charged on your home loan |
| Loan Cap | Subsidy is calculated on a maximum loan amount of ₹1,00,000 |
| Duration | Valid for up to 5 years or until the loan is fully repaid |
| Eligible Sources | Banks, Government or Public Sector undertakings, LIC, GIC, and HUDCO |
| Payment Frequency | Half-yearly direct to bank account via ECS |
Eligibility
To qualify for this scheme, you must meet the following criteria:
- You must be a war widow, a member of a war bereaved family, war disabled personnel, or an attributable peacetime casualty (all ranks from Army, Navy, or Air Force).
- You must have secured a home loan for house construction from an approved institution such as a bank, government or public sector undertaking, LIC, GIC, or HUDCO.
- The interest subsidy applies to a maximum loan amount of ₹1,00,000, even if your total loan exceeds this value.
- You must apply within 180 days from the date of sanction of the home loan.
- Your loan repayment schedule must remain unchanged during the subsidy period.
Application Process
You can submit your application online through the official KSB portal. The process involves registration, form submission, and document verification through the Zila Sainik Board.
STEP 1 - Go to the official KSB website at ksb.gov.in/registration.htm and select the register option. Provide your details like name, Aadhaar number, email, mobile number, service number, rank, and bank information. Create a secure password and note your user ID after successful registration.
STEP 2 - Log in to the portal using your credentials. Choose 'New Application' and select Financial Assistance as Interest Subsidy on Home Loan from the scheme list.
STEP 3 - Fill out the application form completely and accurately. Upload all required documents including scanned copies of your Ex-Servicemen Identity Card, Discharge Book, home loan sanction letter, bank statements showing interest paid, bank passbook, and cancelled cheque.
STEP 4 - Submit the application online. The Zila Sainik Welfare Officer will verify and recommend it, then forward to the Rajya Sainik Board for further recommendation, and finally to KSB for approval.
STEP 5 - After KSB approval, the subsidy is processed and paid half-yearly directly to your registered bank account via ECS. You will need to submit fresh claims with bank interest certificates for each half-yearly period.
Documents
Please ensure you have these documents ready for your application:
From your bank or lending institution:
- A certificate confirming that your repayment schedule will not change.
- A detailed statement showing the interest you actually paid during the claim period.
- A certificate stating your loan and interest repayments are regular.
Personal documents:
- An attested copy of your Ex-Servicemen Identity Card.
- An attested copy of your Discharge Book.
- Home loan sanction letter from the bank.
- Bank passbook and cancelled cheque showing account details and IFSC code.
- Evidence of casualty nature (medical reports, death certificate, disability certificate as applicable).
References
For official scheme guidelines and updates, visit the KSB interest subsidy scheme page and the KSB online registration portal.
FAQ's
What is the maximum loan amount eligible for subsidy?
The subsidy is calculated on a maximum home loan amount of ₹1,00,000, even if your actual loan is higher.
What percentage of interest is reimbursed?
You will receive a reimbursement of 50% of the interest charged on your loan.
Who can apply for this scheme?
War widows, war bereaved families, war disabled personnel, and attributable peacetime casualties of all ranks are eligible to apply.
How long is the subsidy available?
The benefit remains valid for up to 5 years, or until you fully repay your loan, whichever comes first.
Can I apply if I took a loan from a private bank?
Yes, you can apply if the loan is from any scheduled commercial bank, government or public sector undertaking, LIC, GIC, or HUDCO.
How often is the subsidy paid?
The subsidy is processed and paid every six months on a half-yearly basis.
Is there any restriction on changing repayment terms?
Yes, to maintain eligibility, your repayment schedule must remain exactly as agreed at the time of loan sanction.
Can I claim subsidy for a home renovation loan?
No, this financial assistance is strictly for home construction loans, not for renovation or repair loans.
Who verifies my application?
Your local Zila Sainik Board performs the initial verification before forwarding your application to the Rajya Sainik Board and then to KSB.
How is the subsidy amount transferred?
The amount is transferred directly to your registered bank account via the ECS system.
What is the deadline to apply after loan sanction?
You must apply within 180 days from the date of sanction of the home loan to be eligible for the subsidy.