Interest Subsidy on Home Loan

(d) Post dated cheque of the said amount, duly signed, with a certificate by the ESM stating that “In case I fail to submit the documents and registration of the mobility equipment, cheque no. dt may be deposited in the AFFDF account”.

90. Certificate from ZSWO while Recommending Online Application. (a) Following original documents of ESM/Widow have been personally checked and verified by ZSW officer:

(i) PPO (as applicable).

(ii) Service Document/Discharge Book of ESM (Mandatory to upload all pages of Discharge Book in a sequential manner without missing any pages and without any alterations). The pages uploaded must be in legible condition. Any cutting/overwriting in discharge book must be authenticated by the DSWO. Signatures and Stamp marks of any other authority except DSWO will render the entry null and void.

(iii) Gallantry award Part II order (as applicable).

(iv) ESM I-Card.

(v) Validity of driving license.

(vi) Documentary evidence showing nature of activity in which disabled.

(vii) Disability Certificate issued by the Armed Forces Medical Authority/ Govt Hospital, indicating the nature of disability to be 50% and/or above and recommended for procurement of Modified Scooter.

(viii) Financial estimate on printed letter head/form of the firm from the authorized dealer indicating type, make and specifications of mobility equipment, duly signed & affixed with round seal & stamp of firm.

(b) Certify that the applicant has not been provided any financial assistance from the State Govt or any other source.

(c) Confirm that the information furnished in the online application form is correct as per the original documents uploaded by the applicant with the application.

Hence, case is recommended.

Interest Subsidy on Home Loan Grant

91. 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 before 1991 had an upper limit of Rs. 70,000/- as eligibility for 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 institutions including LIC, GIC and HUDCO, was reimbursable as interest subsidy. This was revised in May 1991 with the upper limit raised to Rs. 1,00,000.00.

92. Aim. The aim of this aid-gratis is to provide relief to war bereaved, war disabled and attributable peace time casualties (all ranks), by way of subsidy on loan from banks for construction of house.The financial assistance is provided as reimbursement of 50% interest on home loan up to maximum loan amount of Rs. 1.00 lakh to war widow/ war bereaved/war disabled and attributable peace time casualties (for all ranks)

93. Financial Assistance. Re-imbursement 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 limit for interest subsidy on loan amount will be Rs. 1,00,000/- even though the loan taken may be of larger amount. Interest subsidy up to 50% of the interest charged per year by the bank or Govt/Public Sector Institutions, including LIC, GIC and HUDCO, on Rs 1,00,000/- loan amount (or less) will be reimbursed. This subsidy (50% of interest charged annually for an amount not exceeding one lakh) is payable to applicants for a maximum period of five years from date of sanction, subject to criteria stipulated at paragraph 4 below.

94. Eligibility Conditions. The following criteria must be fulfilled: -

(a) This facility is applicable for War Bereaved, War Disabled and Attributable Peace time casualties only.

(b) Interest subsidy is admissible up to a maximum loan amount of Rs. 1,00,000/- only, even though the loan taken may be of a larger amount. It is admissible only once during life time of ESM. If ESM has been granted this subsidy before, his widow cannot apply.

(c) Subsidy will be paid continuously up to a maximum period of five years from the date when first EMI is paid or till the date of final repayment of loan (in case of loan durations being less than five years), whichever is earlier.

(d) 50% of the interest per annum on Rs 1,00,000/- loan amount (or less), charged by bank or Govt/ public sector financial institutions including LIC, GIC, and HUDCO would be reimbursed.

(e) Online applications will have to be uploaded within 180 days from 01 Apr onwards, for interest on home loan repaid to the financial institutions during the just concluded financial year.

95. Application Form. Specimen form is available on KSB Web portal. The following documents are required to process the interest subsidy on home loan: (a) Home loan sanction letter from bank/Financial Institution addressed to applicant ESM clearly showing amount of loan, tenure, rate of interest and property address.

(b) Copy of interest paid certificate issued by bank during just concluded financial year clearly showing capital amount paid, interest paid and financial year in which paid. This certificate should be signed by individual and countersigned by his ZSWO. This certificate should bear personal particulars of applicant, including the details of sanctioned loan.

(c) Photocopy of sale deed of the home/flat (duly registered) bearing name and personal particulars of the owner, address of property, OR proof of ownership of land/ home being purchased/constructed, duly signed by the individual and countersigned by ZSWO.

(d) ESM Identity Card.

(e) PPO (as applicable).

(f) Service documents/discharge book of ESM (mandatory to upload all pages of discharge book in a sequential manner without missing any pages and without any alteration). The pages uploaded must be in legible condition. Any cutting/overwriting in discharge book must be authenticated by the DSWO. Signatures and Stamp marks of any other authority except DSWO will render the entry null and void.

(g) Gallantry award Part-II order (as applicable)

(h) Copy of Aadhar Card.

(j) Details of Bank A/c No i.e. first page of Bank Passbook or cancelled cheque duly printed name of account holder, IFSC Code, Account no. and Name of Bank

96. Channel of Application. The application will be submitted online by ESM within 180 days from 01 Apr, on completion of just concluded financial year, in which loan is sanctioned by bank or loaning agency and loanee has commenced repayment of loan. In case there is a gap between the date on which loan is sanctioned by bank and commencement of EMI, the applicant will be permitted to apply for reimbursement of 50% of interest paid for loan amount of Rs. 1,00,000/- (or less) for 1st five years in which EMIs are paid by the applicant.

97. Renewal of Payment.

(a) ESM must apply online on KSB Web portal afresh every year for next four years within 180 days from 01 Apr, to claim interest subsidy paid during just concluded

financial year, as per instructions in paragraph 5.

(b) ESM will be able to apply for first five years excluding the year in which loan was sanctioned, since interest paid certificate from bank will be available only after 31 Mar of the concluded financial year.

(c) In case the ESM fails to apply for renewal payment for any of the intervening years during first five years from the financial year in which his home loan was sanctioned by loaning agency, his claim for that financial year will lapse. Thus loanee ESM is permitted to apply during first five financial years only after the financial year in which his loan was sanctioned/EMI payments commenced. Example for illustration is as appended below.

(i) Loan approved by bank - May 2018.

(ii) Bank certificate received for interest paid - Mar 2019.

(iii) Apply for loan subsidy - Before 30 Jun 2019 (within 180 days)

(iv) First year of subsidy payment - 2019-20.

(v) Second year of subsidy payment - 2020-21.

(vi) Third year of subsidy payment - 2021-22.

(vii) Fourth year of subsidy payment - 2022-23.

(viii) Fifth & final year of subsidy payment - 2023-24.

98. Certificate from ZSWO while Recommending Online Application. (a) Following original documents of ESM/Widow required to be personally checked and verified by ZSWO:-

(i) PPO (as applicable).

(ii) Service documents/discharge book of ESM (mandatory to upload all pages of discharge book in a sequential manner without missing any pages and without any alteration). The pages uploaded must be in legible condition.

Any cutting/overwriting in discharge book must be authenticated by the DSWO. Signatures and Stamp marks of any other authority except DSWO will render the entry null and void.

(iii) Gallantry award Part-II order (as applicable).

(iv) ESM Identity Card.

(v) Copy of letter for approval of home loan for dwelling unit, from the govt financial institutions, nationalized Banks, PSU etc.

(vi) Copy of documentary proof showing ownership of land on which house is being constructed or flat being purchased.

(vii) EMI Payment certificate issued by bank/financial institution to the loanee, showing interest on home loan paid during just concluded F.Y.

(viii) Calculation of 50% annual interest on home loan on principal amount of Rs. 1.00 Lakh from concerned bank.

(ix) Details of Bank A/c No i.e first page of Bank Passbook or cancelled cheque duly printed name of account holder, IFSC Code, Account no. and Name of Bank.

(x) The format of the certificate by ZSWO is placed at Appendix ‘H’.