Leading Public Sector Bank (PSB), Indian Overseas Bank (IOB) on Tuesday announced a Memorandum of Understanding (MoU) with National Housing Bank for implementation of the Rural Housing Interest Subsidy Scheme (RHISS) of the Ministry of Rural Development.
The MoU was signed in the presence of MD and CEO, Indian Overseas Bank, R Subramaniakumar and MD and CEO, National Housing Bank, Sriram Kalyanaraman along with the presence of senior executives of IOB and National Housing Bank.
"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," said R Subramaniakumar.
"The aim of the RHISS is to provide a subsidy for the housing loans to the households living in rural areas that are availed for construction and modifications of their dwelling units. The interest subsidy under the scheme is at three percent p.a for a loan amount of Rs 2 lakhs with the repayment period upto 20 years," Subramaniakumar added.
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