e-Circular

REAL ESTATE HOUSING BUSINESS

UNIT(REHBU).
Sl. No. : 683/2016 - 17
Circular No. : NBG/RE,H&HD-HL/24/2016 - 17
Thursday,August 25,2016.
.

The Chief General Manager,

State Bank of India,
Local Head Office,
All Circles

Ref. No. RE/HL/AX/23 Date: 25th August, 2016

Dear Sir/Madam,

PRADHAN MANTRI AWAS YOJANA

CREDIT LINKED SUBSIDY SCHEME (CLSS)

Please refer to our e-circular no. NBG/RE-HL/42/2015-16 dated 24th February, 2016
advising the details of Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri
Awas Yojana.

2. Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has recently issued
certain clarifications in respect of maximum tenure of the loan, ownership of the
proposed house/flat, carpet area of the house/flat, etc. under Credit Linked Subsidy
Scheme. Based on the clarification issued by Ministry, our operational guidelines
under Credit Linked Subsidy Scheme have been revised suitably. The revised
guidelines under CLSS will be as under:

Eligible Loans under CLSS- Scope and Coverage:

• Credit Linked Subsidy is available for housing loans availed for

acquisition/construction of house and repair/extension of Kucha/Semi Pucca
house.
• 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 beneficiaries have been defined as a family comprising of husband,
wife and unmarried children. Only the spouse and unmarried children
will be permitted to join the loan as co-borrowers/guarantors.

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• The residence of the borrower and also the location of the housing property
proposed to be acquired/constructed should be located in 4041 statutory
towns (list of eligible towns are uploaded in SBI Times->Department 2->
REHBU->PMAY).
• The credit linked subsidy is available for loan amount upto Rs. 6 lacs.
However, loan above Rs. 6 lacs may be sanctioned to the eligible customers
but the subsidy will remain available for loan amount upto Rs. 6 lacs only.
• The ownership of the house should either in the sole name of the female
member of the household or joint ownership with the wife. However, this
condition will not be made mandatory in cases of construction of house on an
existing plot or extension/renovation of existing Kuccha/Semi-pucca house.
• The EWS/LIG beneficiaries under this Scheme have been defined as under:

(a) EWS households with an annual income upto Rs. 3 lacs,

(b) LIG households with an annual income above Rs. 3 lacs and upto Rs. 6
lacs,
• The carpet area of more than 30 sq. mts for EWS beneficiaries and more than
60 sq. mts. for LIG beneficiaries may be permitted in case of construction/
acquisition of new house/flat but the claim for interest subvention will be made
for loan amount of first 6 lacs only. However, the area limit of 30 sq. mts for
EWS beneficiaries and 60 sq. mts. for LIG beneficiaries will continue to be
applicable in case of extension/renovation of existing Kutcha/Semi-pucca
house.
• Processing Fee on Home Loan under this scheme will be waived. However,
other out of pocket expenses like cost of obtention of legal/valuation report,
CERSAI Registration charges, etc. will be recovered from the borrowers.
• Takeover of Home Loan from other banks/HFCs will not be covered under
CLSS.
• Home Loan under this scheme will be available only by way of term loan (no
maxgain facility will be available) with a maximum tenor of 30 years subject to
liquidation of the loan outstanding before the borrower reaches the age of 70
years.
• All loans accounts under the Scheme will be linked to Aadhaar or Voter Card
or PAN Card.
• An undertaking signed by borrower/co-borrower in respect of house hold
income and not owning a pucca house by beneficiary will be obtained in
prescribed format enclosed as Annexure-‘A’. However, ITR/Form-16/Salary
Certificate will continue to be obtained from applicants/co-applicants in terms
of extant instruction.

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 • Subsidy will be disbursed maximum in 4 installments in proportion to the
disbursements made in loan account. Bank will directly credit subsidy amount
to beneficiary’s loan account which will effectively reduce loan amount of the
beneficiaries.
• EMIs for Home Loan borrowers under CLSS will be reset on full disbursement
of loan and credit of full subsidy amount in the account.
• The borrower has to complete the construction of house or to take possession
of the house within a period of 36 months. CPCs/Branches shall have to
submit a consolidated certificate on completion of the housing unit along with
digital photograph of borrowers with the financed house property within one
year period from the completion of construction or a maximum of 36 months
from the date of the disbursement of the 1st installment of the loan amount. In
case of default in not providing completion certificate by the CPCs/Branches
within stipulated period, Bank will require to recover the subsidy amount
already released for refund to the Government of India.
• In the event of default in repayment of the loan by the borrowers and the loan
becoming NPA, the CPCs/Branches will proceed for recovery of the dues
through appropriate recovery measures. In all such cases, the recovery will be
charged to the subsidy amount on a proportionate basis (in proportion to the
loan outstanding and subsidy disbursed).
• The other eligibility criteria viz. EMI/NMI norms, LTV norms etc. and other due
diligence norms stipulated under our Home Loan Scheme will continue to be
complied with while handling Home Loan proposals under CLSS.

3. The loan accounts sanctioned on or after 17.06.2015 to the borrowers who are
complying with the eligibility norms stipulated under CLSS may also be covered
under this Scheme. CPCs/Branches are required to scrutinize all such accounts and
submit the subsidy claim form on prescribed format enclosed as Annexure-‘B’ in
respect of eligible borrowers to REH/PBBU Department of the Circle. The product
codes for such accounts should also be changed accordingly. The detailed SOP,
process for claim of subsidy, etc. has been uploaded in SBI Times->Department 2->
REHBU->PMAY.

Yours faithfully,

(Vaijinath M.G.)
Chief General Manager (REH)

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 Annexure-‘A’

The Branch Manager,

State Bank of India,
---------------------- Branch
Date:

Dear Sir,

“I/We ---------------------------------------------------------------------------(name of the

borrower/co-borrowers)* hereby declare that
(i) I/We have applied for Housing Loan under EWS/LIG Scheme of Pradhan
Mantri Awas Yojana Credit Linked Subsidy Scheme.
(ii) I/We and my spouse and unmarried children do not own a pucca house in
any part of India.
(iii) I/We have not availed any loan under this Scheme nor have applied for
Home Loan under this Scheme to any other Banks/Financial Institutions.
(iv) My/our total house hold income from all sources is
Rs………………………per annum.
(v) I/We have been made to understand that the subsidy amount will be
recovered by the Bank for refund to Government of India under the following
circumstances:
(a) I/We fail to complete construction of house/take possession of the
house within 36 months from the date of the disbursement of the 1st
installment of the loan amount,
(b) In the event of default in payment of EMIs of the loan by me/us and the
loan account becoming NPA,
(vi) The payment of subsidy by the Government of India in no manner,
whatsoever, reduces my/our liability towards the dues payable to SBI,
together with interest during the entire loan period.

2. The details of other family members (above 18 years age) excluding borrower/co-
borrower and with maximum of 4 members in the descending order of age are as
under:

i) Name 1:_________________________________
Unique Identification Proof Type and Number [Aadhaar/Voter’s
Card/PAN Card/Passport No.]:____________________________
ii) Name 2:________________________________
Unique Identification Proof Type and Number [Aadhaar/Voter’s
Card/PAN Card/Passport No.]:___________________________

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 iii) Name 3:__________________________
Unique Identification Proof Type and Number [Aadhaar/Voter’s
Card/PAN Card/Passport No.]:___________________________
iv) Name 4:_______________________
Unique Identification Proof Type and Number [Aadhaar/Voter’s
Card/PAN Card/ Passport No.]:________________________

3. I understand and accept that if at any stage, it is found that the information given
by me is false/not true, all benefits given to me under the schemes would be
withdrawn and legal action as deemed fit, would be taken against me.

Yours faithfully,

(Signature of borrower) (Signature of co-borrower)

*The beneficiaries have been defined as a family comprising of husband, wife and unmarried
children. Only the spouse and unmarried children will be permitted to join the loan as co-
borrowers/guarantors.

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 Annexure-‘B’
Format to be submitted by CPC/Branch for claiming subsidy under CLSS

1. Name of the Borrower:

2. PAN Card No. (if Any):
3. Employment Category [Self Employed (01), Salaried (02), Regular wage(03),
Labour(04), Others (05)]:
4. Residence Proof Type [Aadhaar (01), Voter’s Card (02), Ration Card (03),
Mobile/Telephone bill (04), Gas Bill(05), Others (06)]:
5. Address of Borrower:
a. Address1 (Plot/House/Flat/Door No. & Street etc):
b. Address2 (Locality Colony Name):
c. Address3 Place Name (City/Village):
d. Address4 (District):
e. Address5 (State):
f. Address6 (Pin-code):
6. Mobile No of Borrower:
7. Category Caste (whether General/SC/ST/OBC):
8. Category Religion (whether Hindu, Muslim, Christian, Sikh, Jainism,
Buddhism, Zoroastrianism, Others):
9. Category of Household: EWS/LIG
10. Annual Household Income of Borrower (INR):__________________
(as declared by applicant in declaration form)
11. Sex: Male/Female/Transgender:
12. Unique Identification of borrower(Aadhar/Voter’s Card/PAN card/Passport):
13. Name of Co-borrower:
14. Co-borrower Father's/ Husband's Name:
15. Co-borrower Sex [Male (01), Female (02), Transgender (03)]:
16. Co-borrower Date of Birth [DD/MM/YYYY]:
17. Co-borrower Unique Identification Proof Type [Aadhaar (01), Voter’s Card
(02), PAN Card (03), Passport No (04)]:
18. Co-borrower Employment Category [Self Employed (01), Salaried (02),
Regular wage(03), Labour (04), Others (05)]:
19. Number of adult dependents (upto 4): Name of the other Dependents above
18 years of age along with Unique Identification (Aadhaar/ Voter’s card/ PAN
card/ Passport):
a)
b)
c)
d)
20. Property Type( 01-Flat;02-Single Storey house;03-Repair/extension):
21. Carpet Area of house (in sq. Mtrs) [put √]
• Upto 30 sq mtrs
• Upto 60 sq mtrs
• More than 60 sq mtrs
22. Type of House: New/Existing/Re-purchased:

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 23. Complete postal address of property with PIN Code:
a. Address1 (Plot/House/Flat/Door No. & Street etc):
b. Address2 (Locality Colony Name):
c. Address3 Place Name (City/Taluq/Village):
d. Address4 (Pin-code):
24. Stage of Construction [ Yet to Start (00), Ground Level(01), Plinth Level(02),
Roof Level(03), Finishing Stage (04), Superstructure Completed(For multi-
storey only) (05), Completed(06)]:
25. Ownership mode (only in case of enhancement). Whether
• Self-Owned
• Inherited
26. a) Loan Amount: b) Loan Account No.:
27. Purchase of Loan (For purchase/construction/extension):
28. Tenure of Loan:
29. Housing Loan Interest:
30. Moratorium Period if any:
31. Repayment Start Date[DD-MM-YYYY format]:
32. Subsidy Claim No. [Single Installment -00, Multiple Installments –Respective no.]
• Loan amount disbursed for this claim (in Rs):
33. Source of the application (whether direct/ULB/NGO/Developers):

We confirm that the account is eligible for subsidy under CLSS scheme in
terms of extent instructions.

Signature of Branch Official

Stamp
Dated:
(Strike out whichever is not applicable)