PRADHAN MANTRI AWAS YOJANA (PMAY U-2.0) INTEREST SUBSIDY SCHEME (ISS)

Key Features

PMAY - U 2.0

Interest Subsidy Scheme (ISS)

Under the Interest Subsidy Scheme (ISS) vertical of PMAY-U 2.0, the subsidy will be provided on home loans sanctioned and disbursed on 01.09.2024 or after to eligible beneficiaries of EWS/LIG and MIG for purchase/ repurchase/construction of houses.

Households belonging to EWS, LIG and MIG category with an annual income of up to ?3 lakh, ?6 lakh and ?9 lakh, respectively will be eligible to avail the benefit of the Scheme. For identification as an EWS/LIG/MIG beneficiary under the Scheme, an individual loan applicant will submit self-certificate/affidavit as proof of income.

A maximum release of interest subsidy of ?1.80 lakh having maximum NPV of ?1.50 lakh (at Discount Rate of 8.5%) shall be provided to eligible beneficiaries having a loan tenure of more than five years. Households having income up to ?9 lakh, loan value up to ?25 lakh for property value up to ?35 lakh would be eligible for a subsidy at 4.0 % on first ?8 lakh for a tenure up to 12 years. The carpet area of houses under this component shall be up to 120 sqm. Subsidy to the beneficiaries will be released in 5 equal yearly instalments.

For availing the benefit under ISS vertical, eligible beneficiaries will be required to register their demand through Unified web-portal. Subsequently, the application will be forwarded to the concerned PLIs for further necessary action as per his/her eligibility criteria.

The subsidy will be released in 5 yearly instalments through DBT in loan accounts of beneficiary provided loan is active at the time of release of subsidy and more than 50% principal is outstanding. Subsidy will be credited by the PLI to the borrower’s account upfront by deducting it from the principal loan amount of the borrower. The borrower will pay EMI as per lending rates on the remainder of the principal loan amount.

Geo-tagging of houses along with their geo-spatial location is required to be done by the respective PLI/Beneficiary as per the payment plan. Geo-tagging of houses to be done after release of 1st instalment, in case of purchase of completed house. In case of construction /under construction house, Geotagging is to be done before release of each instalment. It is to be ensured by PLI that before releasing 4th instalment to the beneficiary the geo-tagging of house at the completed level is captured in MIS.

Exclusion (Ineligibility) Criteria under ISS:

i. The subsidy under the scheme will be provided only once for a property. If it is sold to someone else, the purchaser can’t take benefit of ISS on this property. PLIs are to ensure that subsidy benefit is not taken by the previous owner by checking on the unified web portal, before initiating the claim of the current occupant.

ii. If two or more family members take combined or separate loan on same property, they will be treated as same family for calculation of family income and benefit.

iii. In case a borrower has taken a housing loan from one PLI and later on switches to another PLI for balance transfer, such beneficiary will not be eligible to claim the benefit of interest subsidy again. If a person has not claimed interest subsidy from first PLI, he/she shall not be eligible after balance transfer

iv. Only loan up to ?25 lakh with the house value up to ?35 lakh will be eligible for subsidy under this vertical. If the family income or property value as assessed by PLI for sanction of loan is higher than eligibility limit, loan will not be eligible for subsidy.

v. In case of any false declaration on income level by a beneficiary who has already availed the scheme benefit, he/she would be liable for legal proceedings under applicable laws.

How to apply

Our RM will evaluate your application and check the fulfillment of the eligibility criteria for the scheme. If the required criteria are satisfied, we will submit your claim to Central Nodal Agency (CNA). The CNA processes the claim and releases the subsidy amount through us.  We will then adjust the subsidy by crediting to your Loan account resulting in reduced loan outstanding and the effective EMI.

** Only for purchase & construction of new house