Karnataka Interest Free Home Loan Scheme

Karnataka Interest Free Home Loan Scheme – Subsidy for Houses in Urban & Rural Areas

The state government of Karnataka has launched a loan scheme for people of the state. The scheme will provide benefits to both urban and rural people of the state. It has been noted that under the scheme the state government of Karnataka will revise the subsidies that are allotted as home loan and the subsidy is given under specific condition to the people. The people will get facility so they do not have to pay the principal amount of the loan. The launch detail is given below.

Launch Table

Name of the schemeKarnataka Interest Free Home Loan Scheme
Launched inKarnataka
Launched byThe state government of Karnataka
Target peopleThe domicile of the state

Key features of the scheme

  • Objective of the scheme- The state government is trying to back the PM Modi’s‘Housing for All’ scheme. And this is the reason the government of Karnataka is trying to build 19 lakhs houses in 30 months.
  • Removing subsidy- It is possible that the state government may remove the subsidy that has been implemented earlier and start paying the interest on the principle loan amount.
  • The amount of interest-The state government will pay 12 lakh rupees maximum as the interest in the urban areas and up to 6 lakh rupees in the rural areas. In that case the government will pay 6.5% per year on 12 lakh rupees and 8% on 6 lakh rupees on a yearly basis.
  • Time limit of paying interest- As per the rule of the scheme the government will pay the interest for 15 years.
  • Payment for beneficiaries- According to the rules of the scheme, the beneficiaries have to spend money to the repay the principle amount of the loan to the bank.
  • Areas of the houses- There is a rule regarding on which type of house will get loan waive. In that case the range is 330 sq. ft. to 450 sq. ft.
  • Loans for houses under three models- There are three models that will enjoy the loan facility. The 1st loan will be applicable if there is a merge of central and state government. The amount of loan will be divided in 2 equal halves between central government and state government. The 2nd model is based on the public-private partnership. In this model the government and a private real estate company will merge to develop a housing project. Lastly, the 3rd model the project will be developed by a private company and then the 50% share will be given to the government.

The eligibility criteria for the scheme

Landless- in order to become the beneficiary of the scheme you do not have to have your own house or land.

Joint ownership- The beneficiary needs to register the house in the name of a female member or you need to register the house in a joint ownership with a female member of the family.

Income criteria- There are income criteria and in order to get the benefit one needs to meet the criteria of the scheme.

Bank account- The beneficiary needs to have a bank account or else they will not get any loan.

Required documents

  • Address proof- As the scheme is for the domicile of the state so you will have to submit the address proof. You can submit the voter ID card as an address proof.
  • Identity proof- You need to submit identity proof; you need to submit Aadhar card and voter ID card as address proof.
  • Income certificate- As there is a limit for income so one needs to produce income certificate at the time application.
  • Bank account details-The candidates need to submit bank account details at the time of application.

It is a commendable step taken by the state government of Karnataka to provide home to the homeless. It will be beneficial for the people and especially for the women as the scheme asks to register the house in the name of any female family member so that they feel secured in the future. The people with no housing property will get standard home to stay and the scheme will look after the people staying in urban and rural areas so that no one feel deprived.

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