AFFDF-Interest Subsidy on Home Loan to ESM

Upto Maximum Rs 1.00 Lakh To War Widow/war Bereaved/war Disabled And Attributable Peace Time Casualties(all Ranks)

Background

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/-.

Aim

The aim of this grant is to provide a small measure of relief to war bereaved, war disabled and attributable peace time casualties(all ranks).

Financial Assistance

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.

Eligibility Conditions

The following criteria must be fulfilled:-

  • (a) This facility is applicable for 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.