IBA discuss modalities to fulfill Pradhan Mantri Awas Yojana – Housing for all Mission – Scheme details
Indian Banks Association has simplified the application form, rationalisation of multiple documents for availing the Housing Loan.
Indian Banks’ Association
16th September, 2015
Chief Executives of all Member Banks
Pradhan Mantri Awas Yojana [PMAY]
Common Application Form, List of Documents for submission &
Memorandum of Understanding
Pradhan Mantri Awas Yojana [PMAY] – the Housing for All [Urban] Mission is launched in compliance with the objective of National Mission Housing providing Housing for all by 2022. The Mission is implemented through four verticals which inter alia included affordable Housing through Credit Linked Subsidy Scheme [CLSS]. Under CLSS, interest subsidy of
6.5% is available on the housing loans which may be availed of by beneficiaries belonging to EWS/LIG categories. The subsidy would be provided to the loan component to the extent of Rs.6 lacs. The NHB and HUDCO have been identified as Central Nodal Agencies [CAN] to channelize the subsidy and also monitor the progress of the Scheme In terms of guidelines, the lending institutions were required to register by signing a Memorandum of Understanding [MOU].
The IBA Working Group on flow of credit to housing for urban poor had discussions on the MOU and other issues like simplification of application, form, rationalization of multiple documents required for disbursement of loans for EWS/LIG category of borrowers.
IBA Working Group had recommended amending the clause 6 and 8 of the MOU to be signed by the lending institutions with NHB / HUDCO as they were not in favour of the lending institutions. The recommendations were forwarded to DFS, MoHUP A and NHB for their consideration.
We have now received the revised clause 6 and 8 of the MOU from NHB which have been amended by MoHUP A. The changes by and large meet with the banks requirements.
Para 6 of the MOU – The bankers had recommended increasing period to 36 months from one year for submitting the completion certificate and in genuine cases the bank may be given discretion to extend for further period exceeding 12 months. The MOU is amended increasing the period to 36 months.
Para 8 – The bankers’ proposal was that as secured lenders. banks should how fa.,liit dmrgc over s.11 le proceeds of p ropeny and hence re puyment of subsidy rece] ved, sheul d bt:’ 011I y after recovery of bank dues. The MOU has been amended, where the account turns NPA, the amount of the recoveries will be charged to the subsidy amount turns NPA, the amount of the recoveries will be first charged to the subsidy amount on a proportianate basis [pari passu] [in proportion to the loan outstanding and subsidy disbursed].
The IBA Working Group finalized the Common Application Form &. Lisr of Documents for subrnission for considering loans to EWS/LIG category or borrowers.
The common application form, list of documents for submission and revised MOU were approved by the IBA Managing Commirtee at its meeting held on 11th September 2015 for adoption by banks.
Accordingly, we enclose the Model Application Form, List of Documents for submission and the revised MOU were signed by lending institutions with NHB/HUDCO for EWS/LIG category or borrowers for adoption and implementation.
Deputy Chief Exccutive
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