Pradhan Mantri Awas Yojana – Housing for all Mission – Scheme details

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

Dear Sirs/Madam,

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.

Yours faithfully,

K Unnikrishnan

Deputy Chief Exccutive

Download the IBA Circular No.CIR/RB/HSG/28 dated 16.09.2015

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