APON GHAR – Interest subvention scheme for Housing Loan for regular Assam Government Employees
GOVERNMENT OF ASSAM
FINANCE (AUDIT & FUND) DEPARTMINT
JANATA BHAWAN, DISPUR, GUWAHATI – 6
Dated Dispur, the 25th July, 2018
Sub: Interest subvention scheme for Housing Loan for regular State Government Employees under “APON GHAR”.
In pursuance of Memorandum of Understanding (MoU) signed on 4th July, 2018 between Govt of Assam and Langpi Dehangi Rural Bank (LDRB) having its Headquarter at Diphu, Karbi Anglong, Assam (sponsored by State Bank of India), the Governor of Assam is pleased to formulate the following procedures and guidelines:
1. The State Government has decided to sanction housing loan to permanent employees of Government of Assam in the three districts i.e. East Karbi Anglong, West Karbi Anglong and Dima Hasao throup the Langpi Dehangi Rural Bank (LDRB).
2. The `Langpi Dehangi Rural Bank (LDRB), Diphu has proposed to extend housing loan to the State Government employees working Assam in the district of East Karbi Anglong, West Karbi Anglong and Dima Ilamo at an interest rate of 8.50% (for women) and 8.55% (for men). The Goverment has decided to provide subvention of interest @ 3.5% and after aiplying this interest subvention, the employees would get housing loan upto Is 15.00 lakh @ 5.0% (for women) and @ 5.05% (for men).
3. Application forms will be submitted by employees throigh their DDOs with complete set of documents as per check list and applicator! format provided by LDRB. The format so customized shall contain a due aid drawal statement of salary of the Government employee (applicant) which vill be duly filled and certified in the format itself by the DDO concerned. Th! due diligence and scrutiny required will be done by LDRB and the LDRB teim will accord final sanction based on the proposal.
4. A suitable formula will be worked out to take floating rateas basis so that in the event of reduced interest rate in future, the emplaces will get due benefits.
5. The State Government has decided to provide loan repayment schedule for the State Government employees as-
(a) When loan upto Rs 15 lacs is sanctioned without creating motgage, maximum 240 months or up to the age of 60 years for employees with pensionable service whichever is earlier.
(b) When loan is sanctioned with mortgage, maximum 240 mantAs or up to the age of 70 years for employees with pensionable service wh.-thever is earlier. I.DRB offered this proposal for those employees who maintin their pension account with I.DRI3 and who would provide an undertaki g and Standard Instruction (SI) to LDRB for the suitable deduction against the EMIs from the pension account (pension holder).
(c) For the employees without pensionable service, in case of employees with or without mortgage, repayment tenure would be maximum 240 months or up to the age of 60 years whichever is earlier.
6. The LDRB will take the responsibility to deduct the housing loan beyond the age of retirement upto 70 years as such the pension accounts are with the LDRB. For the convenience and interest of employees the deduction of EMIs will be adjusted in such a way to be on the higher side during the service period and it will be on the lower side after their retirement period.
7. The loan will be sanctioned -(i) To purchase/ construct a new house/ flat, Purchase of an existing/ old house/flat, (ii) To repair/ renovate existing house/ flat. Maximum loan amount for repair and renovation will be Rs 10 lacs (Rupees ten lac only). Purchase of ancestral plot of land from any close relatives like Parents/ Spouse/ Siblings/ Children is not covered by the scheme under any circumstances
8. Check off facility will be given by DDOs of the concerned employees for recovery of interest and principal amount.
9. There will be no need of mortgage of property for loan amount upto Rs 15.00 lakh. However, mortgage will be required only when loan repayment period coverage is upto 70 years of age for employees with pensionable service.
10. On completion of the repayment of all dues for loans above 15 lakh from the bank availed by the employee, the LDRB branch shall release the Title Deeds against acknowledgement where mortgage is created and issue a ‘No-Due’ certificate to the borroWer with a copy to the DDOs and Finance Department.
This will also be applicable for loan upto Rs. 15 lakh only when loan repayment period coverage is ypto 70 years of age for employees with pensionable service.
11. Takeover of housing loan from other banks and financial institutions is permitted subject to eligibility criteria. This will however be effective after 1 (one) year from the date of issue of this OM.
12. No processing fee will be charged from the State Government employees for housing loan.
13. The benefits of interest subvention will be available to the eligible employees who apply for the housing loan within 31st March, 2019 on the basis of the MoU signed between Govt. of Assam and LDRB, Diphu.
14. The LDRB offered rate of 8.50%-8.55% may undergo a change as and when MCLR (Marginal Cost for fund based Landing Rate) is revised. Presently LDRB’s MCLR rate is 8.0%. After 2 (two) years from the date of sanction, floating rate of interest linked to LDRB MCLR will be applicable.
15. EMIs will be fixed on the basis of LDRB offered rate of 8.50% for women and 8.55% for others. The subsidy amount would be released by way of credit to the salary account of the employees from where the installments towards the housing loan are recovered by charging to the prefunded subsidy account maintained by Government of Assam.
16. Employees having minimum 21 years of age and having at least 5 years residual service only will be eligible for the loan scheme. Maximum 70 years for employees with pensionable service when loan is sanctioned with mortgage, maximum 60 years with pensionable service when loan is sanctioned without mortgage and maximum 60 years for non-pensionable service holders, by which time period the loan should be fully repaid.
17. Close relatives can come together to avail housing loan jointly, if they arc employees of Government of Assam. Government interest subvention will be availed on loan clubbing together upto the prescribed limit
18. The LDRB team will ensure that the employees get hassle free service and concerned departments get a single dedicated window at bank level for all dealings related to the scheme.
19. A Grievance Redressal Cell will be opened at LDRB Head Office espicially for the scheme to take care of grievances of the employees of Government of Assam.
20. Finally the file would be sent for documentation and disbursement of loan to a branch as per the choice of applicant.
21. Insurance premium will also be financed by the bank by way of an additional term loan (Suraksha loan).
22. The house/ flat purchased/constructed with the Bank’s finance would be insured comprehensively for risk of fire/ riots/earthquake/ lightening/floods etc by the employees.
23. The reduced rate of interest on housing loan with State Government subvention will be applicable upto 240 EMI i.e. upto 20 years of EMI deduction.
24. Audited certificate towards utilization of subsidy will be given by I,DRB to the Government of Assam on yearly basis at the end of financial year.
This issues on the basis of the MoU vetted by Judicial Department vide their U/O endorsement No.843/18 dtd.27/06/2018.
(Sri Shyam Jagannathan, IAS)
Commissioner & Secretary to the Govt of Assam,