Financial Assistance as Interest Subsidy on Home Loan

Description
The "Financial Assistance as Interest Subsidy on Home Loan" scheme was launched by the Kendriya Sainik Board KSB , Department of Ex-Servicemen Welfare, Ministry of Defence, Government of India. The scheme aims to provide a small measure of relief to war bereaved, war disabled and attributable peace time casualties all ranks . Under this scheme, reimbursement of 50% of the interest on a home loan up to ₹1,00,000 is provided for a maximum of five years.

Benefits
• Interest Subsidy Amount: 50% of the interest charged on the home loan.
• Loan Limit for Subsidy: Up to ₹1,00,000 (even if the loan amount is higher).
• Duration: Maximum of 5 years or until loan repayment is completed, whichever is earlier.
• Applicable Loan Sources: Banks, Government/Public Sector undertakings, Life Insurance Corporation (LIC), General Insurance Corporation (GIC), and Housing and Urban Development Corporation (HUDCO).

Eligibility Criteria
1. The applicant must be a war widow, war bereaved family member, war disabled personnel, or attributable peacetime casualty (all ranks).
2. The applicant must have taken a home loan from a bank, government/public sector undertaking, LIC, GIC, or HUDCO.
3. The loan amount considered for subsidy must not exceed ₹1,00,000, regardless of the actual loan amount.
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Application Process
Step 1: Once the application reaches KSB Sectt., the staff and officers at KSB carry out vetting and approval of the application. Final payment is made online in due course based on the availability of funds in AFFD.
Online

Once the application reaches KSB Sectt., the staff and officers at KSB carry out vetting and approval of the application. Final payment is made online in due course based on the availability of funds in AFFD.

Required Documents
• A certificate to the effect that there would be no change in the schedule of repayment.
• A statement showing the amount of interest actually paid for the period covered under the claim.
• A certificate to the effect that repayment of loan along with interest was regular.
• A copy of Ex-Servicemen Identity Card duly attested.
• A copy of Discharge Book duly attested.

Frequently Asked Questions
Q: What is the maximum loan amount eligible for subsidy?
A: ₹1,00,000, even if the loan taken is higher.
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Q: What percentage of interest is reimbursed?
A: 50% of the interest charged.
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Q: Who can apply for this scheme?
A: War widows, war bereaved families, war disabled personnel, and attributable peacetime casualties (all ranks).
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Q: How long is the subsidy available?
A: Up to 5 years or until loan repayment is completed, whichever is earlier.
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Q: Can I apply if I took a loan from a private bank?
A: No, only loans from approved banks, government/public sector undertakings, LIC, GIC, and HUDCO are eligible.
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Q: How often is the subsidy paid?
A: Every six months (half-yearly).
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Q: Is there any restriction on changing repayment terms?
A: Yes, the repayment schedule must remain unchanged.
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Q: Can I claim subsidy for a home renovation loan?
A: No, it is only for home construction loans.
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Q: Who verifies my application?
A: The Zila Sainik Board verifies before forwarding to KSB.
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Q: How is the subsidy amount transferred?
A: Directly to your bank account via ECS.
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