PRADHAN MANTRI AWAS YOJANA URBAN PMAY U mission

PRADHAN MANTRI AWAS YOJANA (URBAN) • PMAY (U) mission was launched by Go. I on 17. 06. 2015 to provide housing to all by 2022. • This mission has 4 verticals PMAY 1. In-situ Slum Redevelopment (ISSR) 2. Affordable Housing In Partnership (AHP) 3. Beneficiary Led Construction (BLC- New/ BLC-Enhancement) 4. Credit Linked Subsidy Scheme (CLSS) • This mission covers all 271 statutory towns (Recently Go. I extended scope even to Notified planning area/ Development area/ Special area/ Industrial area) • State Level Nodal Agency: RGRHCL • ISSR/AHP/BLC Verticals are Centrally Sponsored Scheme (CSS) implemented in convergence with State housing schemes by KSDB, KHB, ULBs, UDAs, Private developers etc. CLSS Vertical is Central Sector Scheme implemented by banks.

ELIGIBILITY CRITERIA: A family comprising husband, wife, unmarried children. PMAY • Not having pucca house any where in India • Having kutcha /semi kutcha house. • Having pucca house carpet area less than 21 Sqmt Adult earning member (married/unmarried) having no house any where in India Family residing in ULB /special/development/industrial area limit/ planning Annul income as follows: Category Income EWS 0 - 3 lakh LIG 3 -6 lakh MIG 1 6 -12 lakh MIG 2 12 -18 lakh 2

DEMAND SURVEY As a first step , State had conducted demand survey during 2016 -17 & 2017 -18. PMAY 1. 2. 3. 4. To assess housing need To draw year wise /vertical wise strategy to provide housing by 2022 To asses fund requirement To plan for Resource Mobilization Household data were entered into the PMAY-MIS As on end of August 2018, the vertical wise demand is as follows: Total ISSR AHP BLC CLSS 19. 22 4. 11 8. 92 4. 32 1. 86 Out of 19. 22 applications, 12. 85 lakh applications are validated, 6. 37 applications are under validation

CREDIT LINKED SUBSIDY SCHEME CLSS is Interest Subsidy scheme for home loans of EWS, LIG and MIG Borrowers PMAY • Period • CLSS (EWS/ LIG) : 17. 06. 2018 to 31. 03. 2022. • CLSS (MIG 1/MIG 2) : 01. 2017 to 31. 03. 2019 During demand survey, 1. 86 lakh household opt for CLSS. The details of 1. 86 household is accessible to bankers (Bank may collect user ID and Password from their respective head offices)

CREDIT LINKED SUBSIDY SCHEME PURPOSE : • • • Items New House(construction/ purchase) Extension (EWS/LIG only) Repair (EWS/LIG only) EWS LIG Income limit (Per Annam) 3. 01 to 6. 00 6. 01 lakh to 12 MIG-2 lakh Carpet Area: (Sqmt) Loan amount (max) Loan period Interest subsidy (Per up to 30 6. 00 lakh 20 Year 6. 5% up to 60 6. 00 lakh 20 Year 6. 5% 160 sqmt 9. 00 lakh 20 year 4% 12. 01 lakh to 18 lakh 200 sqmt 12. 00 lakh 20 year 3% Interest subsidy amount Incentive in lieu of Loan processing fee Additional loan 2. 67 lakh 3000 2. 67 lakh 3000 2. 35 lakh 2, 000 2. 30 lakh 2, 000 Annam) up to 3. 00 MIG-1 Additional loan beyond limit will be at non subsidized rate EWS/LIG beneficiary may construct larger house. But extension/ repair limited to 30 sqmt/ 60 sqmt 5

CENTRAL NODAL AGENCY & BANKS • Central Nodal Agencies: HUDCO/ NHB • Banks: • • Scheduled Commercial banks Housing Finance Companies Regional Rural Banks State Cooperative Banks Urban Cooperative Banks Small Finance Banks Non Banking Finance Company-Micro Finance Institutions • Beneficiaries will submit self –certificate /affidavit as proof of income • Beneficiary has to submit application • • Directly to bank (EWS/LIG/MIG) Through ULB (EWS/LIG). Bankers will sanction loan after due diligence Subsidy will be claimed by banks from HUDCO / NHB. Subsidy will be released to beneficiaries account upfront Rs. 250 per sanctioned application would be paid as incentive to ULBs (EWS/LIG only). • Upfront crediting the subsidy will effectively reduce the loan principal outstanding. 6 • PLIs undertake all required processing as regular housing loan. • •

CLSS - Illustrative Example ( Loan tenure -20* years/240 months ) Loan Amount eligible for Subsidy Interest Subsidy Balance Loan Initial EMI @10% Reduced EMI after crediting Subsidy Monthl y savings Annual savings (1) (2) (3) (4)=(1 -3) (5) (6) (7) = (5 -6) (8)= (7) x 12 EG EWS/LIG I 3, 00, 000 1, 33, 640 1, 66, 360 2, 895 1, 605 1, 290 15, 480 II 6, 00, 000 2, 67, 280 3, 32, 720 5, 790 3, 211 2, 579 30, 948 III 10, 000 6, 000 2, 67, 280 7, 32, 720 9, 650 7, 071 2, 579 30, 948 MIG 1 I 6, 00, 000 1, 56, 712 4, 43, 288 5, 790 4, 278 1, 512 18, 144 II 9, 00, 000 2, 35, 068 6, 64, 932 8, 685 6, 417 2, 268 27, 216 III 12, 000 9, 000 2, 35, 068 9, 64, 932 11, 580 9, 312 2, 268 27, 216 MIG 2 I 9, 00, 000 1, 72, 617 7, 27, 383 8, 685 7, 019 1, 666 19, 992 II 12, 00, 000 2, 30, 156 9, 69, 844 11, 580 9, 359 2, 221 26, 652 III 15, 000 12, 000 2, 30, 156 12, 69, 844 14, 475 12, 254 2, 221 26, 652

National Housing Bank (NHB) / Housing & Urban Development Corporation Ltd (HUDCO) are Central Nodal Agencies. No of banks signed Mo. U with NHB/ HUDCO. Scheme NHB HUDCO Total CLSS (EWS/ LIG 190 70 260 CLSS (MIG 1 & MIG 2) 180 64 244 CLSS progress ULBs No. of Application Received in demand survey Sanctioned 271 1. 86 7091 Claiming Interest Subsidy There is prescribed format. Bank has to submit claims online to their head office / Regional office- they will forward the same to NHB/ HUDCO Release of subsidy: NHB/ HUDCO will release interest subsidy to Bank. Then bank will credit to Beneficiary account.

RGRHCL-SLNA has taken following initiatives: • • 1. 84 lakh potential applicants list available in demand survey is shared with SLBC / DLBC/ RBI representative. The same list is also shared with DC/ULB and directed in turn to share with banker. Many ULBs already shared it. Letter addressed to RBI representative was also sent requesting for expedite the progress Follow up is being done by ULB officers and CLTC experts. Discussion points: • • Bankers have to expedite the progress Few bankers are informing that they have not received direction/ target from higher authority about CLSS. Bankers insist for IT return even Go. I has directed to accept self declaration for annual income. Bankers are unaware of procedure for claiming interest subsidy. Bankers are collecting interest from beneficiaries itself

• Banks to conduct Sensitization Activities as follows: • • Guidelines / brochure/ Pamphlet may be circulated in both English and Kannada. Advertisements / Article may be published in local news paper /electronic media Ward wise /cluster level Campaign may be scheduled. Meetings and awareness programs may be conducted for CLSS beneficiaries To involve Private developers/ Builders under the scheme Banks to utilize Go. I’s MIS wherein 1. 84 lakh beneficiaries are registered under CLSS DLBC to conduct focused review on progress, bottlenecks and to frame District level strategy in consultation with Stake holder (ULB/ Bankers/ NHB/ HUDCO/ DLBC/ SLBC representatives/ SLNA representatives/ Private builders) and implement the same accordingly.

Thank You