The state government of Karnataka has introduced the Karnataka Interest Free Home Loan 2021 in order to make houses a little affordable for people in both the rural as well as urban areas of Karnataka. The government of Karnataka plans to do so by reanalyzing the housing schemes at lower and affordable prices for the citizens of the Karnataka state and replacing them with zero-interest loans. The official website to apply for this scheme is https://khb.karnataka.gov.in/.
The state government of Karnataka has launched this scheme along with the Housing Board of Karnataka. Under the Karnataka Interest Free Home Loan Scheme, the state government of Karnataka is planning to pay an interest subsidy of 6.5 per cent on Rs. 12 lakh loans in urban areas.
Similarly in rural areas, the state government is planning to pay an interest subsidy of 8 per cent on Rs. 6 lakh loans. Under this scheme, anyone in Karnataka can fulfill their aspiration of buying their own house. This article contains more details of the Interest-Free Home Loan scheme below.
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How To Apply For The Karnataka Zero Interest Home Loan 2021?
If an eligible person wants to avail the benefit of the Interest Free Loan Scheme, then he or she will need to visit the nearest bank branch available, either government or private. By visiting the bank branch in your area he/she can apply easily by submitting the necessary documents as will be asked by the bank officials during registration.
Alternatively, willing applicants can also go to the Karnataka Housing Board official website for more details about the Zero Interest Home Loan scheme.
Here are the detailed steps in order to register yourself under the Karnataka housing scheme-
Step 1: First of all the candidates need to visit the official website of the scheme under the Karnataka Housing Board at https://khb.karnataka.gov.in/.
Step 2: The default language of the page is Kannada. If you’re comfortable with Kannada, continue further. If you’d like to change the language to English, click the ‘English’ button present near the top left corner of the page.
Step 3: On scrolling down a little you will see a section for home loans on the website. Click on that section.
Step 4: When you open the home loans section, a list will appear.
Step 5: From the list, you now need to select the loan type that you want to apply for.
Step 6: After selecting the type of loan, you will again be directed to a new page.
Step 7: This portal will ask for a lot of details relating to the loan that you want. Here you are needed to fill in all the necessary details.
Step 8: After filling in all the necessary details, click on the Submit button.
Step 9: After submitting the details, all the details about the Zero Interest Home Loan Scheme will appear on your screen.
Overview Of The Karnataka Interest Free Loan Scheme 2021
| Name of the scheme | Karnataka Interest Free Home Loan Scheme 2021 |
| Launched by | The state government of Karnataka |
| Scheme to be worked under | PM Awas Yojana by the Central Government |
| Department of the government concerned | The Karnataka Housing Board |
| State of launch | Karnataka |
| Year of launch | 2021 |
| Objective of the scheme | To provide subsidies on home loans on the buying of first house |
| Beneficiaries of the scheme | Rural and urban citizens of the Karnataka state |
| Official website of the scheme | https://khb.karnataka.gov.in/ |
| Article category | Karnataka Scheme |
How Will The Karnataka Government Implement The Interest Free Home Loan Scheme?
The Karnataka state government is planning to remodel the current housing schemes in the state and instead replace them with zero interest home loans which will enable more and more people from the poorer areas of the state to buy their own houses for shelter. This initiative by the state government is a part of central government’s mission to implement PM Modi’s Awas Yojana or the ‘Housing For All’ scheme.
The government of Karnataka will revise the subsidies on home loans under the Zero Interest Home Loan scheme under specific conditions. As part of the Housing for All scheme, the Karnataka state government is planning to construct around 19 lakh houses in the next two and a half years (total thirty months).
The government of Karnataka has launched this scheme for people belonging both to the rural as well as urban areas of the state of Karnataka. With the announcement of thi housing scheme, the existing subsidies being given on home loans have been removed as the government plans to revise them.
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Three Models Of The Interest Free Home Loan Scheme
The loans under the scheme will be only allowed under three models mentioned below-
- Under the first model, loans will be given by combining Rs. 6 lakh from the state government and Rs. 6 lakh from the central government under the Pradhan Mantri Awas Yojana (PMAY) in urban areas, and Rs. 6 lakhs in rural areas.
- In the second model, houses will be built according to the public-private partnership (PPP) model.
- In the third model, the land would be developed by a private contractor and would hand over 50% share of the land to the government. The state government of Karnataka will then give this land to the beneficiaries.
Frequently Asked Questions (FAQs)
Q1. What are the types of loans provided under the Karnataka Interest Free Home Loan Scheme 2021?
Ans. Home construction loan, home loan balance transfer, joint home loan, top-up loan, loans for plot, land purchase loan, loan under PM Awas Yojana, home loan for women, home loan for government employees, home loan for advocates, private employees and bank employees.
Q2. How much subsidy is being provided under the Housing scheme?
Ans. In urban areas, the government will pay 6.5 % interest on the home loans for up to 12 Lakh Rupees. In rural areas, the government is going to pay 8% interest on the home loans of up to 6 Lakh Rupees.