Name of the scheme: Rajiv Rinn Yojana
Purpose: The main purpose of the scheme is to provide home loan with Central Government interest subsidy to EWS/LIG* persons for acquisition/ construction of house to such beneficiaries, who do not own a house in his/her name or in the name of his/her spouse or any dependent child.
(EWS- Economically Weaker Sections and LIG Low Income Groups)
- The economic parameter of EWS is defined as households having an average annual income up to Rs. 1 lakh and the economic parameter of LIG is defined as households having an average annual income between Rs. 1 lakh up to Rs.2 lakh.
- Beneficiaries who own land in any urban area but do not have any pucca house in their name or in the name of their spouse or any dependent child will also be covered under the Scheme.
- The scheme will provide an interest subsidy for a maximum amount of Rs.5 lakh for an EWS individual for a house at least of 21 sq.mts.
- There should be a provision for toilet wherever new construction of house is contemplated.
- Additional loans, if needed would be at unsubsidised rates.
- A maximum loan amount of Rs. 8 lakh will be allowed for a LIG individual.
- However, subsidy will be given for loan amount up to Rs. 5 lakh only.
- Additional loan amount between Rs 5 lakh and 8 lakh, if taken would be at unsubsidized rates.
- A beneficiary can build or purchase a house with a minimum carpet area of 28 Sq. mts as per his/her convenience.
Loan tenure: The loan tenure can be between 15 – 20 years
- The subsidy will be 5% p.a. on interest charged on the permissible loan amount for EWS and LIG, for constructing new houses or for carrying out addition (of a room / kitchen / toilet / bathroom) to the existing building.
- However, there would be no collateral security/ third party guarantee for loans up to Rs. 5 lakh. No levy of prepayment charges would be permitted.
For more information regarding this scheme, click here