Gudia

ATM / Branch Locator

INTEREST SUBSIDY SCHEME FOR HOUSING URBAN POOR (ISHUP)

     
  Ministry of Housing and Urban Poverty Alleviation, Govt. of India has designed an Interest Subsidy scheme as an instrument for addressing the housing needs of Economically Weaker Section (EWS) and Low Income Group (LIG) through Jawaharlal Nehru Urban Renewal Mission (JNNURM).  
     
  The salient features of the scheme are as under:  
     
 
Purpose To provide Home Loan with Central Government subsidy to EWS/LIG persons for acquisition/construction of house.
Eligibility for application under the scheme i).Beneficiary should not own a house in his/her name or in the name of his/her spouse or any dependent child at the time of application of loan under the scheme. 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.
ii). Important scheme parameters for qualification under EWS and LIG should be as under:

Income Group Average annually house hold Income@ Minimum size of the house Maximum permissible subsidized loan Amount* Maximum loan amount eligible for subsidy
EWS Upto. Rs.1,00,000/- per annum 25 Sq.mts. Rs.1 lac Rs.1 lac
LIG Rs.1,00,001/- to Rs.2,00,000/- 40 Sq.mts. Rs.1.60 lac Rs.1 lac

*Additional loans, if needed would be at unsubsidized rates.
@Average monthly   household income is  subject to revision from time to time. Income Certificate only from the revenue authority/competent authority authorized by the State Government issued be accepted.
iii). Construction of new house should be ideally completed within a maximum of 12 months from the date of first disbursement whenever the beneficiary is taking up the construction himself.
Identification of the beneficiaries Beneficiaries will be identified by the Urban Local Bodies (ULBs) or the Local Nodal Agency (LNA) identified by the respective State Governments for the purpose.
Loan Term Maximum permissible loan term will be 20 years. Loan term will be inclusive of Moratorium period, if any.
Interest application Interest will be applied to the borrower’s account at the bank’s rate of interest on daily outstanding loan balance at monthly rests.
Repayment Borrower will repay the loan by way of Equated Monthly Installments (EMIs).
EMIs payable by the borrower will be calculated after reducing the Central Government subsidy which is receivable upfront, from the maximum principal amount.
Prepayment Borrower will be free to prepay loan. Prepayment or pre-closure charges will not be levied for any reason whatsoever.
Primary Security Mortgage of the dwelling unit.
Collateral Security Collateral Security or Third Party Guarantee will not be obtained for loans upto and inclusive of Rs. 1 Lac.
Subsidy Loans under this scheme will be eligible for Central Government subsidy of 5% on the interest charged by the bank on the admissible loan amount over the full period of loan. Subsidy will be released to the bank by the Central Government through Nodal Agency, i.e, HUDCO.
Other conditions Other eligibility criteria would be the same as in case of Home Loan scheme of the Bank.
Website address for further details Detail of the scheme are also available on website of the National Housing Bank-http://nhb.org.in/ in the link for URBAN HOUSING-Interest Subsidy Scheme & website http://www.hudco.org/