Why interest Subsidy on Home Loan ?
KSB reimburses interest by way of subsidy on loan from banks for construction of house to War Bereaved, War Disabled and Attributable Peace time casualties. This scheme was started before 1991 with upper limit of Rs 70,000/- for eligibility of the grant of interest subsidy, even though the loan taken might be of a higher amount. 50% of the interest charged by the banks or Govt/Public Sector including LIC,GIC and HUDCO would be reimbursable as interest subsidy. This was revised in May 1991 with the upper limit of Rs 1,00,000/-.
How much Loan / subsidy is applicable ?
Reimbursement of interest on loan taken from banks for construction of house to War Bereaved, War Disabled and Attributable Peace time casualties is provided out of AFFD Fund. The upper existing limit of Rs 1,00,000/- for eligibility of the interest subsidy, even though the loan taken may be of a higher amount . 50% of the interest charged by the banks or Govt/Public Sector including LIC, GIC and HUDCO would be reimbursable as interest subsidy.
Who all are Eligible ?
The following criteria must be fulfilled:-
- (a) War Bereaved, War Disabled and Attributable Peacetime casualties only.
- (b) Interest subsidy is admissible up to maximum loan of Rs 1,00,000/- only even though the loan taken may be of a higher amount.
- (c) Subsidy will be paid up to a maximum period of five years or the date of final repayment of loan whichever is earlier.
- (d) 50% of the interest charged by bank or Govt/public sector including LIC,GIC,HUDCO would be reimbursable as interest subsidy.
- (e) The interest subsidy would be payable half yearly direct to the applicant.
How to Apply for interest subsidy on home Loan ?
Application should be made with recommendation of the concerned Zilla Sainik Board with the following information/documents:-
- (a) Certificates from the concerned banker or reputed organizations in Govt/PSUs including LIC,GIC and HUDCO are as follows:-
- (i) A certificate to the effect that there would be no change in the schedule of repayment.
- (ii) A statement showing the amount of interest actually paid for the period covered under the claim.
- (iii) A certificate to the effect that repayment of loan along with interest was regular.
- (b) A copy of Ex-Servicemen Identity Card duly attested.
- (c) A copy of Discharge Book duly attested.
Online Application link : https://ksb.gov.in/registration.htm
What actions are taken at at KSB on your applications ?
On receipt at KSB Sectt, the Account Section-in-Charge will assign the application to a designated clerk who will enter desired data from the applications in to computer. Another clerk will be designated to check correctness of the entries. The Section-in-Charge will verify the same and put up the case in relevant file for processing to JD(Account) who will obtain approval of Secretary, KSB.
How is the interest subsidy amount paid ?
After approval of Secretary, KSB, the application will be processed for payment by the Account Section. After verifying the ESM’s service number, name, banker’s IFS Code and bank account number, etc, the Account Section will issue payment instructions to the Accounts Section for payment to concerned ESM via ECS for procurement of toolkit.