Lok Sabha Question No. 224 (UNSTARRED), answered on 2021-02-02
Subject: Rural Housing Interest Subsidy
Ministry: RURAL DEVELOPMENT
Asked by: Dhanush M Kumar, C.N. Annadurai, Vijay Kumar Dubey, Rebati Tripura, Ganesan Selvam, Gautham Sigamani Pon, Gajanan Chandrakant Kirtikar

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK  SABHA UNSTARRED QUESTION NO. 224

ANSWERED ON 02.02.2021

## RURAL HOUSING INTEREST SUBSIDY

## 224. SHRI DHANUSH M. KUMAR:

SHRI C.N. ANNADURAI:

SHRI VIJAY KUMAR DUBEY:

SHRI REBATI TRIPURA:

SHRI SELVAM G.:

SHRI GAUTHAM SIGAMANI PON:

SHRI GAJANAN KIRTIKAR:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether the Government is implementing the rural housing interest subsidy scheme for housing the rural poor in the country and if so, the details thereof;
- (b) the  details  of  rural  poor  who  have  benefited  from  the  above  scheme  during  the  last three years in the States of Maharashtra, Tamil Nadu, Uttar Pradesh and Tripua, yearwise;
- (c) the progress and performance  of the above  project especially in Maharashtra, Tamilnadu, Uttar Pradesh and Tripura;
- (d) whether  the  scheme  has  managed  to  spend  barely  around  Rs.10  crore  out  of  the  50 crore released, if so, the reasons for poor utilization of funds and weak response from the rural poor; and
- (e) whether  now  the  Government  is  seeking  to  revive  the  scheme  by  roping  in  two financial  institutions  with  strong  rural  network  and  if  so,  the  steps  taken  by  the Government in this regard?

## ANSWER

## MINISTER OF RURAL DEVELOPMENT (SHRI NARENDRA SINGH TOMAR)

(a): Yes, in order to realize the Government's objective of 'Housing for All' by 2022, Rural Housing Interest  Subsidy  Scheme (RHISS) was approved by the Union Cabinet on 24 th January  2017.  The guidelines were released for RHISS on 19th June 2017.  RHISS provides for interest subsidy at the rate of 3.0 percent on the principal amount of the loan. The interest subsidy by Government of India is  admissible  for  a  maximum  loan  amount  of  Rs.2.00  lakh  for  20  years  or  full  period  of  loan whichever is less. The maximum amount of subsidy for a beneficiary is Rs.38,359/- for the entire duration of the loan.

National  Housing  Bank  (NHB)  was  identified  as  the  Central  Nodal  Agency  (CNA)  to channelize the subsidy to the lending institutions and to monitor the scheme implementation. Primary lending institutions for RHISS include Scheduled Commercial Banks, Housing Finance Companies, Regional Rural banks, State Cooperative banks, Urban Cooperative banks, Small finance banks, Non Banking Financial Companies (NBFC), Micro-Finance Institutions (MFIs)  or any other institution identified by the Ministry.

| RHISS Disbursement data as on 14-01-2021   | RHISS Disbursement data as on 14-01-2021         | RHISS Disbursement data as on 14-01-2021   | RHISS Disbursement data as on 14-01-2021                                      |
|--------------------------------------------|--------------------------------------------------|--------------------------------------------|-------------------------------------------------------------------------------|
| Sl No                                      | Primary Lending Institution (PLI)                | No of claims                               | Total Disbursement (Subsidy Released + Processing Fee- Subsidy Refund) In Rs. |
| 1                                          | Aptus Value Housing Finance India Ltd            | 429                                        | 11,869,135                                                                    |
| 2                                          | Fasttrack Housing Finance Limited                | 12                                         | 350,531                                                                       |
| 3                                          | GRUH Finance Ltd.                                | 1,295                                      | 41,234,502                                                                    |
| 4                                          | IIFL Home Finance Ltd.                           | 69                                         | 2,303,981                                                                     |
| 5                                          | Manappuram Home Finance Ltd                      | 106                                        | 3,813,500                                                                     |
| 6                                          | MAS Rural Housing &Mortgage Finance Ltd.         | 323                                        | 8,280,010                                                                     |
| 7                                          | Navarathna Housing Finance Ltd.                  | 1                                          | 16,017                                                                        |
| 8                                          | Sundaram Home Finance Ltd.                       | 36                                         | 1,031,920                                                                     |
| 9                                          | Swarna Pragati Housing Microfinance Private Ltd. | 646                                        | 8,586,078                                                                     |
| 10                                         | Wonder Home Finance Ltd                          | 18                                         | 565,946                                                                       |
|                                            |                                                  | 2,935                                      | 78,051,620                                                                    |
| 11                                         | Aryavart Bank                                    | 2,161                                      | 11,924,955                                                                    |
| 12                                         | Bangiya Gramin Vikash Bank                       | 1                                          | 33,913                                                                        |
| 13                                         | Chhattisgarh Rajya Gramin Bank                   | 225                                        | 8,140,496                                                                     |
| 14                                         | Dakshin Bihar Gramin Bank                        | 11                                         | 341,069                                                                       |
| 15                                         | Maharashtra Gramin Bank                          | 508                                        | 15,253,146                                                                    |
| 16                                         | Saurashtra Gramin Bank                           | 4                                          | 154,990                                                                       |
| 17                                         | Uttar Bihar Gramin Bank                          | 25                                         | 845,172                                                                       |
|                                            |                                                  | 2,935                                      | 36,693,741                                                                    |
| 18                                         | United Bank of India                             | 204                                        | 7,322,324                                                                     |
|                                            |                                                  | 204                                        | 7,322,324                                                                     |
|                                            |                                                  | 6,074                                      | 122,067,685                                                                   |

## (b): In order to realize the Government's objective of 'Housing for All' by 2022, Rural Housing Interest Subsidy Scheme (RHISS) was approved by the Union Cabinet on 24 th January 2017.  The initial funding of Rs. 48.54 crore was released by the Ministry of Rural Development to NHB on 31st July, 2019 and subsequently, subsidy has been disbursed during current year also.  Year wise details of rural poor who have benefited from the above Scheme in the States of Maharashtra, Tamil Nadu, Uttar Pradesh and Tripura from the amount so far released, are given below:

| State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Sl. No                                                      | State Name                                                  | No. of claims                                               | Total                                                       | Net Subsidy                                                 | (in                                                         | Rs.)                                                        |                                                             |
| 1                                                           | Maharashtra                                                 | 678                                                         |                                                             | 21,367,470                                                  |                                                             |                                                             |                                                             |
| 2                                                           | Tamil Nadu                                                  | 3                                                           |                                                             | 96,735                                                      |                                                             |                                                             |                                                             |
| 3                                                           | Tripura                                                     | -                                                           |                                                             | -                                                           |                                                             |                                                             |                                                             |
| 4                                                           | Uttar Pradesh                                               | 2                                                           |                                                             | 30,746                                                      |                                                             |                                                             |                                                             |

| State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Sl. No                                                      | State Name                                                  | No. of claims                                               | Total                                                       | Net Subsidy                                                 | (in                                                         | Rs.)                                                        |                                                             |
| 1                                                           | Maharashtra                                                 | 788                                                         |                                                             | 20,603,847                                                  |                                                             |                                                             |                                                             |
| 2                                                           | Tamil Nadu                                                  | 424                                                         |                                                             | 10,716,836                                                  |                                                             |                                                             |                                                             |
| 3                                                           | Tripura                                                     | -                                                           |                                                             | -                                                           |                                                             |                                                             |                                                             |
| 4                                                           | Uttar Pradesh                                               | 2,161                                                       |                                                             | 11,924,955                                                  |                                                             |                                                             |                                                             |

- (c): No subsidy has been disbursed in the State of Tripura so far.  The progress and performance of the subsidy disbursed under the scheme especially in Maharashtra, Tamil Nadu and Uttar Pradesh are as under:-
- (d): Total subsidy disbursed under the scheme till 14 th January, 2021 is Rs 12.20 crore. The reasons  for poor utilization of funds and weak response from the rural poor are as below:
- i. Major  public  sector  banks  like  State  Bank  of  India,  Punjab  National  Bank,  Canara  Bank, UCO Bank and Indian Bank have not entered into an MoU with NHB.
- ii. As the subsidy needs to be extended to beneficiaries who are not part of the Permanent Wait List of PMAY G, identification of such borrowers is difficult.
- iii. Unavailability of credit guarantee is affecting the off-take of the scheme through Regional Rural Banks (RRBs) as they are reluctant to sanction loans without credit guarantee.
- (e): NHB is the Central Nodal Agency for RHISS.  Inclusion of new PLIs is a continuous process undertaken by NHB.

| State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20   | State Wise disbursement figures under RHISS in FY 2019-20                         |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Sl No                                                       | State Name                                                  | No of claims                                                | Total Net Subsidy (in Rs.)                                  | % of subsidy disbursed in state against total subsidy disbursed across all states |
| 1                                                           | Maharashtra                                                 | 678                                                         | 21,367,470                                                  | 40.25                                                                             |
| 2                                                           | Tamil Nadu                                                  | 3                                                           | 96,735                                                      | 0.18                                                                              |
| 3                                                           | Uttar Pradesh                                               | 2                                                           | 30,746                                                      | 0.06                                                                              |

| State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21   | State Wise disbursement figures under RHISS in FY 2020-21                         |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Sl No                                                       | State Name                                                  | No of claims                                                | Total Net Subsidy (in Rs.)                                  | % of subsidy disbursed in state against total subsidy disbursed across all states |
| 1                                                           | Maharashtra                                                 | 788                                                         | 20,603,847                                                  | 29.87                                                                             |
| 2                                                           | Tamil Nadu                                                  | 424                                                         | 10,716,836                                                  | 15.53                                                                             |
| 3                                                           | Uttar Pradesh                                               | 2161                                                        | 11,924,955                                                  | 17.29                                                                             |

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