IOB partners with NHB for implementation of rural housing subsidy scheme

Indian Overseas Bank on Tuesday announced a memorandum of understanding (MoU) with National Housing Bank for implementation of the Rural Housing Interest Subsidy Scheme (RHISS) of the central rural development ministry. The MoU was signed in the presence of MD & CEO of Indian Overseas Bank, R Subramaniakumar and MD & CEO of National Housing Bank, Sriram Kalyanaraman, along with senior executives of IOB and National Housing Bank, IOB said in a release. The aim of the RHISS is to provide subsidy on housing loans given to households living in rural areas, which are availed for construction and modifications of their dwelling units. The interest subsidy under the scheme is at 3 percent per annum for a loan amount of Rs 2 lakh with repayment period up to 20 years. R Subramaniakumar, MD & CEO of Indian Overseas Bank said, “IOB is one of first major public sector bank to execute the MoU to implement the scheme. With the association, the bank will be able to extend the benefit of the RHISS scheme to its rural home loan customers of its 923 rural branches spread across India.”