Piyush Mishra4 days ago
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The second phase of Pradhan Mantri Awas Yojana (PMAY) was launched recently. In this case, eligible persons can avail housing loan concessions through the Credit-Linked Subsidy Scheme (CLSS). But many people don’t know that the government can remove subsidies if certain conditions of the program are violated.
When can the subsidy be cancelled?
Generally speaking, credit-linked subsidies can be withdrawn in three circumstances.
- First position: If the borrower fails to pay the loan installment to the bank, the loan becomes NPA. This means its recovery is impossible.
- Second case: When a credit subsidy has been provided to the party but the construction of the house is stopped for some reason. In this case, the subsidy amount must be returned to the government.
- The third situation: If proof of housing usage is not submitted, the government can withdraw the subsidy. The lending bank must submit the certificate of occupancy/end-use of the completed construction of the house to the nodal agency within one year or up to 36 months from the date of disbursement of the first tranche loan amount. In the absence of this certificate, the bank must return the subsidy to the relevant nodal agency.
The family only has one subsidy
Under the scheme, each family member receives only one subsidy. This includes husband, wife and unmarried children.
What happens after EMI withdrawal?
When the subsidy ends, the lender has to revert to the original interest rate, resulting in an increase in EMI.
If I already have a home loan, can I enjoy PMAY subsidy?
You cannot avail PMAY subsidy on your existing home loan. PMAY subsidy is available to first-time home buyers.