Penalties
RBI in exercise of powers vested with it under the provisions of National Housing Bank Act, 1987, has imposed a monetary penalty of Rs. 5.00 lakh (Rupees Five lakh only) vide its order dated August 29, 2024 received by the Company on September 6, 2024, for failure to obtain two independent valuation reports before sanctioning certain loans of ₹75 lakh and above.
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Pradhan Mantri Awas Yojna(PMAY)
SCHEME INTRODUCTION

Pradhan Mantri Awas Yojana (Urban) Mission launched on 25th June 2015 which intends to provide

housing for all in urban areas by year 2022. One Of the key components Of this mission is the Credit

Linked Subsidy scheme that focusses on providing loans in subsidised manner to the under privileged

sections of the society. The beneficiary segments are divided into 4 groups viz. — Economically Weaker

Sections (EWS), Lower Income Group (LIG) and Middle-Income Group (MIG — I & II). The scheme will

be valid till Mar'2022 for EWS and LIG; and for MIG segments the validity was recently increased to

March'2021.

Scheme Snapshot — The calculation parameters used for calculating subsidy
Particulars EWS LIG MIG I MIG II
Annual Household Income (Rs.) Upto 3,00,000 3,00,001 - 6,00,000 6,00,001 - 12,00,000 12,00,001 - 18,00,000
Interest Subsidy (% p.a.) 6.50% 6.50% 4.00% 3.00%
Maximum loan tenure (in years) 20 20 20 20
Eligible Housing Loan Amount for Interest Subsidy (Rs.) 6,00,000 6,00,000 9,00,000 12,00,000
Dwelling Unit Carpet Area 30 Sq. m. 60 Sq. m. 160 Sq. m. 200 Sq. m.
Discount Rate for Net Present Value (NPV) calculation of interest subsidy (%) 9.00% 9.00% 9.00% 9.00%
Maximum subsidy amount Rs. 2.67 lakh Rs. 2.67 lakh Rs. 2.35 lakh Rs. 2.30 lakh

Scheme FAQ's

Category Question Answer
Scheme Related What is Pradhan Mantri Awas Yojana (Urban) and its objectives and scope?

Pradhan Mantri Awas Yojana (Urban) was launched on 25th June 2015 for providing pucca houses to all eligible beneficiaries by 2022.

The Mission provides Central Assistance to implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all eligible families/ beneficiaries against the validated demand for houses There are multiple options under which the benefits can be availed by the beneficiaries depending on their income, finance and availability of land,

  • “In-situ” Slum Redevelopment (ISSR)
  • Credit Linked Subsidy Scheme (CLSS)
  • Affordable Housing in Partnership (AHP)
  • Beneficiary-led individual house construction/enhancements (BLC)

For more details you can visit https://pmay-urban.gov.in/
GHF offering IS GHF offering all the PMAY schemes ? No , Godrej Housing Finance is the Primary Lending Institution only for Credit Linked Subsidy Schemes(CLSS)
Scheme Related What is Credit Linked Subsidy Scheme (CLSS)?

PMAY – CLSS provides for subsidised Loans by way of credit into the Loan accounts of borrowers eligible under this scheme.

Interest Subsidy up to 2.67 lakh per house is available for Beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG).

Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans from Banks, Housing Finance Companies and other such institutions for acquiring/constructing houses can avail a maximum of Rs. 2.35 Lac subsidy under this scheme.
Scheme Related Who can avail of PMAY CLSS? How are beneficiaries defined under PMAY?
  • A beneficiary family for this scheme purposes will comprise husband, wife and unmarried children (sons or daughters)
  • Also provided 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.
  • An adult earning member irrespective of marital status can be treated as a separate household in MIG category
  • 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
  • The beneficiary family should not have availed of central assistance under any housing scheme from Government of India or any benefit under any scheme in PMAY (CLSS, other schemes of PMAY urban or Rural)
Scheme Related What are the documents to be uploaded by the beneficiary? Beneficiary to mandatorily upload the house photograph for which subsidy has been availed through PMAY (U) application.
Scheme Eligibility What are the category definitions for PMAY subsidy?
  • Economically Weaker Section (EWS): EWS households are defined as households having an annual income up to Rs. 3,00,000 (Rupees Three Lakhs)
  • Low Income Group (LIG): LIG households are defined as households having an annual income between Rs.3,00,001 (Rupees Three Lakhs One) up to Rs.6,00,000 (Rupees Six Lakhs)
  • Middle Income Group (MIG) - I: MIG - I households are defined as 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 (MIG) - II: MIG - II households are defined as households having an annual income between Rs.12,00,001 (Rupees Twelve Lakh One) up to Rs.18,00,000 (Rupees Eighteen Lakh).
Scheme Eligibility What are the Property related conditions for PMAY CLSS?
  • The property should meet NDMA, BIS Codes and NBC codes; all building design to be approved and basic infra to be available - water, toilet, sanitation, sewerage, road, electricity etc.
  • The loan purpose w.r.t property can be anyone of the following - New Construction, Acquisition, addition of rooms, kitchen, toilet, etc. to existing dwelling as incremental housing for EWS / LIG
  • For MIG (I&II) the purpose can be New Construction or Acquisition (including re-sale)
  • Subsidy will be available for P+C loans subject to them meeting the other scheme conditions
  • Property will have to comply with carpet area limits as prescribed under the scheme
  • Property if under construction would have to be completed within 36 months from the date of disbursal else the subsidy would have to be paid back to the government
Scheme Eligibility Can an under-construction property be eligible for PMAY subsidy or only fully constructed properties are only considered? Yes, under construction properties are eligible for PMAY subsidy provided it meets all the mandatory criteria. However, the property needs to be completed in 36 months from the date of the first disbursement, otherwise the subsidy would be recalled by the PLI and credited to the Central Nodal Agency Account
Scheme Eligibility What happens if the construction of the property is stalled? In such cases, the loan becomes ineligible for PMAY interest subsidy.
Scheme Eligibility I am buying the house in my company’s name. Can I still be eligible for PMAY subsidy? No, the PMAY scheme can be availed by individual borrowers only.
Scheme Eligibility Is this applicable for properties in rural areas? No, the properties should be in urban areas basis 2011 census.
Scheme Eligibility Does land purchase come under Pradhan Mantri Awas Yojana? No, land cannot be purchased under PMAY. The scheme is applicable to provide affordable homes at subsidised rates to every household in India.
Scheme Eligibility Is Woman Ownership Mandatory To Be Eligible For This Subsidy? We recommend and counsel that women ownership for houses across categories be promoted.
Scheme Eligibility Will I be eligible for the CLSS scheme if I am a co-applicant of my father's home loan for a property owned by him? No. If you are a co-applicant of a home loan, you are not eligible for CLSS benefits under PMAY. If an individual or any of their family members already own a pucca house, he or she cannot get interest subsidy for a home loan under the scheme.
Scheme Eligibility Can we get 30 year home loan for EWS beneficiary?

Yes, beneficiaries can apply for sanction of home loan for tenure of 30 years, which would depend on the due diligence norms of the PLIs concerned.

The subsidy however, the interest subsidy would be restricted on home loans upto Rs. 6 lakhs/9 Lakhs /12 Lakhs for tenure not more than 20 years as per the category in which the beneficiaries are eligible.
Scheme Eligibility Is there a limit on the home loan amount under PMAY? There is no cap on the loan amount under PMAY it is dependent on the credit worthiness of applicant and internal policy of GHF.
Subsidy Release How the subsidy is to be released to beneficiaries?

The subsidy would be released by the Central Nodal Agency (CNA) based on the disbursements made by Primary Lending Institutions (PLI) to the beneficiaries.

Subsidy, so disbursed by the CNA to the PLI, will be credited by the PLI to the borrower’s account by deducting it from the principal loan amount and reduce his EMI.

The borrower will pay EMI on the remainder of the principal loan amount thus lowering the overall EMI

E.g., the borrower avails a loan for Rs. 48.00 lakhs and subsidy works out to Rs. 2.67 lakhs, the amount (Rs. 2.67 lakhs) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 45.33 lakhs) and the borrower would pay EMIs on the reduced amount of Rs. 45.33 lakhs
Subsidy Release How will I know that the PMAY subsidy is approved / credited? On credit of the PMAY subsidy amount in loan account, GHF will inform the details of the same to the customers.
Subsidy Release Why is the PMAY subsidy adjusted against my EMI amount only? I want the EMI to remain the same and tenure to be reduced? As per PMAY guidelines, the subsidy amount has to be adjusted against the total Principal amount and the reduction is to be given in EMI amount, hence it is adjusted accordingly.
PMAY – Balance Transfer What will happen if I transfer my current loan which is under PMAY scheme from GHF to other financial institution (before PMAY subsidy credit)? In case the loan is eligible for PMAY subsidy, GHF will initiate the claim to the Central Nodal Agencies (CNAs) and if the loan is transferred from GHF before receiving the subsidy amount, this amount will not be credited to the customer loan account. Also, when the new financial institution will apply for PMAY claim, it may be rejected by CNAs on account of duplicity.
PMAY – Loan Closure What happens when beneficiary after getting CLSS benefit, sells the property and pre-closes the loan. Is subsidy to be refunded to CNAs? No, the subsidy amount will not be required to be refunded in such scenario.
PMAY Charges Is there a processing fee for availing loan under PMAY?

There is no charge for the borrower. However, the lender is paid a sum of Rs 3,000 by the Central Government as processing fees.

However, fee can be charged on loan amount above subsidy eligible loan amount.
PMAY Delinquency What happens when the PMAY subsidised loan becomes delinquent? In case any account which has received PMAY subsidy becomes delinquent, the customer will have to return the credit subsidy amount to the CNAs via GHF.