The second phase of Pradhan Mantri Awas Yojana (PMAY) has been launched now. In this, eligible individuals get concession on home loan through Credit Linked Subsidy Scheme (CLSS). But many people don't know that the government can withdraw the subsidy if some conditions of the scheme are violated.
When can the subsidy be withdrawn?
There are generally three circumstances in which the credit link subsidy can be withdrawn.
- First position: If the borrower defaults on the loan installments to the bank and the loan becomes NPA. That means its recovery is not possible.
- Second position: When the credit subsidy has been given to the concerned person, but due to some reasons the construction of the house has stopped. In such a situation, the subsidy amount has to be returned to the government.
- Third position: Government can withdraw the subsidy if building occupancy certificate is not produced. The lending bank is required to submit utilization/end-use certificate to the nodal agency for completion of construction of the house within one year or maximum 36 months from the date of disbursement of the first installment of the loan amount. In the absence of this certificate the bank has to return the subsidy to the concerned nodal agency.
Only one subsidy per family
Under the scheme, only one subsidy is given to each family member. Which includes husband, wife and unmarried children.
Can one avail PMAY subsidy if one already has a home loan?
You cannot avail PMAY subsidy on existing home loan. PMAY subsidy is for first time home buyers.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
