Credit Linked Subsidy Scheme for Middle Income Group (MIG)
Beneficiaries of the Middle Income Group (MIG) seeking housing loans from Bank will be eligible for interest subsidy with the following salient features:
| Particulars | MIG – I | MIG – II |
| Effective date | 01.01.2017 | 01.01.2017 |
| Household Income (Rs. p.a.) | Above 6.00 lakh upto 12.00 lakh | Above 12.00 lakh upto 18.00 lakh |
| Eligible Housing Loan amount for Interest Subsidy | 9.00 lakh | 12.00 lakh |
| Maximum loan Tenure (yrs) | 20 | 20 |
| Interest Subsidy (% p.a.) | 4.00 | 3.00 |
| Discount rate for Net Present Value (NPV) for Calculation of interest subsidy (%) | 9.00 | 9.00 |
| Dwelling Unit Carpet Area (Sq.mt) | 160 | 200 |
| Maximum Subsidy | Rs.2,35,068/- | Rs.2,30,156/- |
| PARTICULARS | DESCRIPTION | |
Eligibility | Individuals from Middle Income Group category. Joint owners from the same family are also eligible. | |
Middle Income Group- I | Households having an annual income between Rs.6,00,001 (Rupees Six Lakh One) up to Rs.12,00,000 (Rupees Twelve Lakh). | |
Middle Income Group- II | Households having an annual income between Rs.12,00,001 (Rupees Twelve Lakh One) up to Rs.18,00,000 (Rupees Eighteen Lakh). | |
Carpet Area | Ø MIG – I – 160 Sq.m. Ø MIG –II – 200 Sq.m. Dwelling units with larger carpet area are not eligible for subsidy under the scheme | |
| Beneficiary | A beneficiary family will comprise of husband, wife, unmarried sons and/or unmarried daughters. An adult earning member (irrespective of marital status) can be treated as a separate household; Ø Provided that he / she does not own a pucca (an all weather dwelling unit) house in his / her name in any part of India. Ø Provided also that in the case of a married couple, either of the spouses or both together in joint ownership will be eligible for a single house, subject to income eligibility of the household under the Scheme. | |
Purpose | For acquisition/ construction of house (including re- purchase) Loans for Repair/ Renovation/ Extension of existing dwelling unit are not eligible for subsidy under the scheme | |
| Loan Amount | Need Based as per the existing housing loan scheme. | |
| Rate of Interest | As per the existing housing loan scheme. Loan will be allowed under Floating Rate Option only | |
Credit Linked Subsidy | The subsidy will be available at the following rates: Ø MIG –I = 4% (loan upto Rs 9 lakh) Ø MIG-II = 3% (loan upto Rs 12 lakh) Loan beyond the eligible limit as above will be on non-subsidized rates | |
| Subsidy Credit | Interest subsidy will be credited upfront to the loan account of beneficiaries resulting in reduced effective housing loan and Equated Monthly Installment (EMI). | |
| Processing Fee | Ø Loan up to Rs. 9 lakh in MIG-I – NIL Ø Loan up to Rs. 12 lakh in MIG – II – NIL For additional loan amount beyond the eligible loan amount as above | |
| Documentation Charge | As per the existing housing loan scheme to public | |
| Repayment Period | As per the existing housing loan scheme to public | |
| Moratorium Period | As per the existing housing loan scheme to public | |
| Prepayment charges | Nil | |
| Security | Equitable/ registered mortgage of the property as per the existing housing loan scheme | |
PRADHAN MANTRI AWAS YOJNA: Credit Linked Subsidy Scheme
(Effective from 17.06.2015 in 4041 statutory towns as per Census 2011)
| Eligibility | · Individuals from Economically Weaker Section (EWS) & Low Income Group (LIG category. Joint owners from the same family are also eligible. · In case a borrower who has taken a housing loan and availed of interest subvention under the scheme but later on switches to other Bank/FIs for balance transfer, such beneficiary will not be eligible or claim the benefit of interest subvention again. (The houses constructed/acquired with central assistance under the mission should be in the name of the female head of the household or in the joint name of the male head of the house hold and his wife, and only in cases when there is no adult female member in the family, the house can be in the name of male member of the house hold). | ||||||
| Economically Weaker Section (EWS) | EWS households are defined as households having an annual income up to Rs.3,00,000 (Rupees Three Lakhs only). | ||||||
| Low Income Group (LIG) | LIG households are defined as households having an annual income above Rs.3,00,000 (Rupees Three Lakhs) and up to Rs.6,00,000 (Rupees Six Lakhs). | ||||||
| Proof of Income | Requirement of obtaining Salary slips/ ITR/Form 16/ ABS, whichever applicable, may be waived off where the borrower belongs to EWS/ LIG category as specified under the scheme and is not required to file ITRs in terms of prevailing Income Tax rules. In such cases ‘Self Certification/ affidavit’ towards Income proof shall be sufficient. In all other cases as per extant guidelines of the Bank. i.e., For Salaried class:- Latest salary slip, Form16/ITR for the last 2 years & For other than Salaried class:- ITRs/ Audited Balance Sheets for the last 2 years of business/activity. | ||||||
| Beneficiary | A beneficiary family will comprise husband, wife and unmarried children. The beneficiary family should not own a ‘pucca’ house (an all weather dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India. An Affidavit to this effect is to be obtained. | ||||||
| Central Nodal Agencies (NHB) | Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (NHBs) to channelize subsidy to the primary lending institutions and for monitoring the progress of this component. Our Bank has signed MOU with National Housing Bank (NHB). | ||||||
| Purpose | For purchase, new construction and addition of rooms, kitchen, toilet etc., to existing dwelling units as incremental housing. In case of incremental housing i.e. addition of rooms, kitchen, toilet etc. it should be ensured that the same is for conversion of Kutcha / semi pucca house to pucca house. | ||||||
| Loan Amount | Max. Rs.30 lac. Subject to maintaining Loan to Value ratio (LTV) and repaying capacity. | ||||||
| Credit Linked Subsidy | · The subsidy is available at the rate of 6.5% for tenure of 20 years or during tenure of the loan whichever is lower. · Subsidy will be available only for loan amounts upto Rs.6 lac and additional loans beyond Rs.6 lac, if any, will be at nonsubsidized rate. · The Net present value of the interest subsidy will be calculated at a discounted rate of 9%. · Maximum Subsidy amount will be Rs 2,67,280/- · Interest subsidy will be credited upfront to the loan account of beneficiaries. | ||||||
| Subsidy Credit | · Subsidy will be credited by the Bank 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. · Based on the loan disbursed by Bank to EWS and LIG beneficiaries, the NHB will release the subsidy amount to Bank directly based on the claims submitted on the total loans disbursed. · Subsidy will be released to the Bank by the NHB in maximum of four installments. | ||||||
| Margin (Borrower’s contribution) |
However Cost of stamp duty, registration and other documentation charges may be added to the cost of the house/dwelling unit for the purpose of calculating LTV ratio in cases where the cost of the house/dwelling unit does not exceed Rs.10 lac. | ||||||
| Disbursement of loan | As per extant housing loan scheme to public. However disbursement should be made depending upon the progress of construction, as Subsidy will be released to the Bank by the NHB in maximum of four installments. | ||||||
| Processing Fee / Upfront fees | Nil upto Rs. 6.00 lakh. For additional loan above Rs. 6.00 lakh, bank will charge the normal service charges | ||||||
| Documentation Charge | Nil. For additional loan above Rs. 6.00 lakh, bank will charge the normal service charges | ||||||
| Rate of Interest | · As per Housing Loan to public scheme. · Loan under the scheme would be allowed under floating rate of interest option only. | ||||||
| Repayment Period | Up to age of 70 years or 30 years, including moratorium period, whichever is earlier | ||||||
| Repaying Capacity | Repayment will be fixed on a realistic basis, which should not exceed the prescribed limit of Net Monthly Salary/Income (NMS/I) of the borrower(s). NMS/I is equal to {Gross Salary/ Income – Statutory Deductions such as Income Tax, Professional Tax, Other Tax Liabilities, PF etc.} For this purpose, all deductions including the proposed Housing Loan installment should not exceed the prescribed ceiling as under:
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| Security | Equitable/ registered mortgage of the property. | ||||||
| Prepayment Charges | Nil | ||||||
| Utilization Certificate | · Bank will provide utilization/end use certificate to the NHB on a quarterly basis and also the certificate in relation to the physical progress of the construction leading up to the completion of the housing unit. · The bank shall submit a consolidated utilization certificate on completion of the housing unit within one year period from the completion of construction or a maximum of 36 months from the date of the disbursement of the 1st installment of the loan amount. In case of default in not providing utilization/ end-use certificate the bank shall refund the amount of subsidy to the NHB. Further, any unutilized amount of subsidy shall be immediately returned by Bank to NHB. | ||||||
| Preference to Borrower | Preference under the Scheme, subject to beneficiaries being from EWS/LIG segments, to be given to Manual Scavengers, Women (with overriding preference to widows), persons belonging to Scheduled Castes/Scheduled Tribes/Other Backward Classes, Minorities, Persons with disabilities and Transgender. | ||||||
| How to Apply | Beneficiary can apply for a housing loan directly or through the Urban Local Body (ULB) or the local agencies identified by the State/ULBs for facilitating the applications from intended beneficiaries. | ||||||
| Misc. | · Credit linked subsidy would be available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing. · The carpet area of houses being constructed or enhanced under this component of the mission should be upto 30 square meters for EWS and 60 square meters for LIG, in order to avail of this credit linked subsidy. However, the beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6 lakh only. · The bank will monitor the construction of the dwelling units financed under the scheme, including the approvals for the building design, infrastructure facilities etc. as also the quality of the construction and verify through site visits etc. the expenditure incurred upto different stages of construction. · In the event of default in repayment of the loan by the borrower/beneficiary to the Bank and the loan becoming Non performing assets (NPA), the bank will proceed for recovery of the dues as per extant guidelines, including foreclosure of the property. In all such cases, the amount of the recoveries will be charged to the subsidy amount on a proportionate basis (in proportion to the loan outstanding and subsidy disbursed). |
