Question : Release of Loans for Houses under PMAY

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

(a) whether the Government is aware that even after applying for subsidy under PMAY Scheme for construction of house, banks are denying release of loans and discouraging the consumers;
(b) if so, the reaction of the Government thereto;
(c) whether any study has been conducted by the Government on the implementation of the scheme and if so, the details thereof; and
(d) the remedial measures taken by the Government including issue of new guidelines in this regard?

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE
MINISTRY OF HOUSING AND URBAN AFFAIRS

(SHRI HARDEEP SINGH PURI)

(a) & (b): For implementation of Credit Linked Subsidy Scheme (CLSS for EWS/LIG & CLSS for MIG) component of PMAY(U) mission, Ministry has identified two Central Nodal Agencies (CNAs) i.e. National Housing Bank and Housing and Urban Development Corporation Ltd. to channelize the subsidy to the Primary Lending Institutions (PLIs) viz Banks, Housing Finance Companies, etc. CNAs have in-turn signed MoUs with PLIs for implementation of the scheme.

In terms of the Scheme Guidelines, Primary Lending Institutions (PLIs) have to adopt their own due diligence process while sanctioning home loans. The beneficiary has to complete the formalities as prescribed under the ‘due diligence’ of the PLIs (Banks/ HFCs, etc) concerned, if he is otherwise eligible under the scheme guidelines of PMAY (U) mission.

(c): Government has not conducted any study on the implementation of the CLSS scheme.

(d): Grievances received against PLIs in connection with the implementation of CLSS are sent to Central Nodal Agencies viz National Housing Bank (NHB) and Housing & Urban Development Corporation Ltd. (HUDCO), for remedial action. CNAs are also advised to undertake sensitization / interaction programmes with the PLIs from time to time to increase awareness about the Scheme.

Since the launch of PMAY(U) scheme guidelines on 25.06.2015, Government has issued amendments/clarifications under the scheme guidelines from time to time to strengthen the outreach of the scheme.

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