New Delhi: Pradhan Mantri Awas Yojana (PMAY) is considered one of the most revolutionary schemes of the Central Government. The Center launched Pradhan Mantri Awas Yojana 2.0 on 9 August last year. It has been brought after the resounding success of the first phase.

Under this scheme, the government gives subsidy to the needy for building houses. This is a Credit-Linked Subsidy Scheme (CLSS). This reduces the cost of repaying the home loan. But, if the person availing the subsidy does not fulfill certain conditions, then the subsidy can be taken back from him.

Let us know what things should be kept in mind while applying for Pradhan Mantri Awas Yojana and on fulfilling which conditions the subsidy money may have to be returned along with interest.

When can the subsidy be returned?

The government insists that more and more people should take advantage of the Pradhan Mantri Awas Yojana. But, some people make some mistakes intentionally or out of compulsion, which leads to the credit linked subsidy being returned.

1. If the borrower is unable to repay the loan installments to the bank on time and the loan becomes a non-performing asset (NPA). This means that the bank assumes that it will not get the loan amount back. In this situation, the credit linked subsidy is withdrawn.

2. If a beneficiary has received credit subsidy and has also started construction, but due to some reason he stops the construction. In this case, the beneficiary will have to return the subsidy amount received under the Pradhan Mantri Awas Yojana.

3. If the beneficiary does not submit the certificate of use of the house, then also the government can withdraw the subsidy amount. This certificate has to be submitted within one year to 36 months from the date of disbursement of the first installment of the loan.

Keep these things in mind too

Under the Pradhan Mantri Awas Yojana, the family gets only one subsidy.

A family consists of husband and wife along with unmarried children.

There should not be any pucca house in the name of the applicant or his family.

He should not have received assistance for house from any other housing scheme.

What happens when the subsidy ends?

Under the Pradhan Mantri Awas Yojana, the interest subsidy is given in advance to the loan account of the beneficiary. This means that it is credited at the beginning of the home loan. This reduces the effective housing loan amount and EMI. After the subsidy ends, the beneficiary has to return to the original interest rate, which increases the EMI.