PM Awas Yojana: The central government has recently launched the second phase of its ambitious scheme – Pradhan Mantri Awas Yojana (PMAY). In this, eligible persons get concession on home loans through Credit Linked Subsidy Scheme (CLSS). In this home buyers get affordable rate of interest. But if you violate some conditions, then the government can also take back the subsidy from you. Let’s know the full news.
PM Awas Yojana: (PMAY) is considered to be one of the most revolutionary schemes of the central government. The Center launched Pradhan Mantri Awas Yojana 2.0 on 9 August last year. It has been brought after the resounding success of the first phase.
In this scheme, the government gives subsidy to the needy to build houses. It is a Credit-Linked Subsidy Scheme (CLSS). This reduces the cost of repaying the home loan. But, if the person taking advantage of the subsidy does not fulfill some conditions, then the subsidy can also be taken back from him.
Let us know what things should be kept in mind while applying for Pradhan Mantri Awas Yojana and on fulfilling which conditions the subsidy money along with interest may have to be returned.
When can the subsidy be returned?
The government insists that more and more people take advantage of the Pradhan Mantri Awas Yojana. But, some people make some mistakes intentionally or out of compulsion, due to which there is a situation of credit linked subsidy being returned.
1. If the person taking the loan is not able to repay the loan installments to the bank on time and the loan becomes a non-performing asset i.e. NPA. This means that the bank assumes that now it will not get this loan amount back. In this situation, the credit linked subsidy is returned.
2. If a beneficiary has received credit subsidy. He also started construction. But, due to some reason, he stops the construction. In this case, the beneficiary will have to return the subsidy amount received under the Pradhan Mantri Awas Yojana.
3. Even if the beneficiary does not submit the certificate of use of the house, the government can still take back the subsidy amount. This certificate has to be submitted within one year to 36 months from the date of disbursement of the first installment of the loan.
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Also keep these things in mind
- Under the Pradhan Mantri Awas Yojana, a family gets only one subsidy.
- A family consists of husband and wife along with unmarried children.
- The applicant or his family should not have any permanent house in his name.
- He should not have received assistance for the house from any other housing scheme.
What happens when the subsidy ends?
Under the Pradhan Mantri Awas Yojana, the interest subsidy is given in advance to the loan account of the beneficiary. This means that it is credited at the beginning of the home loan. This reduces the effective housing loan amount and EMI. After the subsidy ends, the beneficiary has to return to the original interest rate, which increases the EMI.
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