PRIME MINISTER AWAS YOJANA (NAMMA MANE)
The Scheme will provide home loan with central government subsidy to Resident EWS/LIG persons of the Urban Area where loan is applied, for acquisition/construction of a house to such beneficiary, who does not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India. The beneficiary family will comprise of husband, wife and unmarried children. 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 household and his wife, and only in cases where there is no adult female member in the family, the house can be in the name of male member of the household. The mission will support construction of houses upto 30 square meter carpet area with basic civic infrastructure. Basic civic services and Provision of a toilet is essential in the proposed house under the scheme
Individuals under Economically Weaker Section(EWS) & Low Income Group (LIG) are eligible. The Economic parameter of EWS is defined as house holds having annual income up to Rs.3.00akhs. (Rupees Three lakhs). LIG households are defined as holds having an annual income between Rs.3, 00,001 (Rupees Three Lakhs ne)upto Rs.6,00,000 (Rupees Six Lakhs) State/UTs shall have the flexibility to redefine the annual income criteria as per local conditions in consultation with the Centre .For identification as an EWS or LIG beneficiary under the scheme, an individual loan applicant will submit self-certificate/ affidavit as proof of income. Filing of IT Returns should not be insisted for EWS. However, sources of income should be verifiable. Individual(s) over 18 years of age with steady source of income*, including persons engaged in agriculture& allied activities.* In case the property holder i.e.(wife/husband) is not having independent source of income, the income earning spouse or unmarried son/daughter may join as co-borrower/guarantor for the loan and his or her income can be taken for arriving at loan eligibility.
4. Quantum:(Loan Amount):
The loan amount will be determined by the EMI/NMI ratio irrespective of the age of the borrower. The loan amount is decided by there paying capacity of the borrower, which comes out as a rationale of EMI/NMI. Subsidy will be available only for loan amounts upto Rs.6 lakhs and additional loans beyond Rs.6.00 lakhs, if any, will be
at non-subsidized rates.
Net Annual Income in Rs. Permissible EMI/NMI Ratio
Upto Rs.60,000/- 20%
> 60,001/- 25%
> Rs. 1,20,001 to <= 30%
> Rs.2 lacs to <= Rs.5 50%
NMI (Net monthly income) Explanation:
NMI means monthly income net of all statutory deductions.
Other than Salaried persons:
Net AnnuaI income (NAI) means income as per latest income tax return filed less than taxes payable. In special cases, where the controllers are satisfied about the genuine need and capability of the borrowers, based on the repayment of existing term loan (if any) depreciation may be included in net income on a selective basis to arrive at the quantum of loan amount depending upon the custom and Credit worthiness of the borrowers. Depreciation that is allowed to be added to the net income will be average depreciation during the last three years or depreciation for the current year whichever is lower.
NAI should be arrived at, based on the nature of their activity ( e.g. farming, diary,
poultry, orchards) land holding, cropping pattern, yield, etc. and average level of income derived there from in the area.
Equated Monthly Instalment (EMI) for computing the EMI/NMI ratio will
include all EMIs towards existing loans and the proposed loan.
Maximum Loan Amount: Rs.20.00 lacs
5. Primary Security: Mortgage of house property
6. Interest: MCLR+0.50=9.95
7. Margin: 15% upto Rs.20.00 Lacs
8. Processing Charge: NIL
9. Repayment: Maximum 15 years
10. Moratorium Period:
Where loan is sought for construction of a new house/flat or where it is being purchased on instalments basis from a Government/Public agency/reputed builder or society, at the request of the borrower a moratorium period (repayment holiday) may be allowed till 2 months after completion of construction or upto 18 months from disbursement of the first instalment of the loans, whichever is earlier. However To align there payment programme in the mega housing complexes with several towers with that of the building completion the ,moratorium period is asunder:
Maximum Permissible Moratorium Period –36 Months
11. Credit-Linked Subsidy Scheme:
Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks would be eligible for an interest subsidy at the rate of 6.5% for tenure of 15 years or during tenure of loan whichever is lower. The credit-linked subsidy will be available only for loan amounts upto Rs.6 lakhs and additional loans beyond Rs.6.00 lakhs, if any, will be at no subsidized rate. Interest subsidy at Net Present Value(NPV) will be credited upfront to the loan account of
beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI). The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%Credit linked subsidy would be available for housing loans availed for acquisition/new construction and addition of rooms, kitchen toilet etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component of the mission should be upto 30 square metres and 60square metres for EWS and LIG, respectively, in
order to avail of this credit-linked subsidy. 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.
12.. Special Feature :
Preference should be given to beneficiaries beingfrom EWS/LIG segments, to safai karmachari, Women (with overriding preference to widows),persons belonging to Scheduled Castes/Scheduled Tribes/Other Backward Classes, Minorities, Persons
with disabilities and Transgender. Primary Lending Institution should take No
Objection Certificates quarterly from State/UT Governments or designated agency of
State/UT Governments for the list of beneficiaries being given benefits under credit-linked subsidy.
13. Pre-closure Penalty: No prepayment penalty