In an effort to make home ownership easier for paramilitary personnel, the Central government is planning to launch a scheme under which home loans are made available to them at concessional rates.
“The scheme will allow a soldier from a paramilitary force to avail cheaper home loans at least two years prior to his retirement,” a senior home ministry officer told Hindustan Times.
The official added that the government is formulating the exact modalities of this scheme, such as loans rates and tenures and has initiated talks with several banks for its implementation.
“The State Bank of India has in-principle agreed to be part of this scheme,” the official said.
In fact, SBI has already been closely associated with the armed forces. The bank had recently launched Defence Salary Package (DSP) for the Indian Army whereby it aims to open close to 12 lakh accounts of Army personnel under the scheme.
The DSP offers free drafts, cheque books, fund transfers and ATM cards to the soldiers of Indian Army to any of SBI Group’s over 15,000 branches.
The scheme also offers home, auto and personal loans to Army personnel at 25 basis points lower than the floor rate.