What If You Fail To Utilise Funds Sanctioned Under Housing For All Mission?
By 2022, when India completes 74 years of its Independence, everyone in the country will own a house, if all goes according to the plan. As the government steps up work on meeting the Housing For All Mission by 2022 target, PropGuide answers 10 frequently asked questions about the mission.
Who could be a beneficiary under the mission?
The Housing for All Mission is formulated to help India's urban poor. Under the mission, slum dwellers will be rehabilitated while affordable housing will be built for the weaker section through credit-linked subsidy. For this purpose, a beneficiary could be a family that will include the husband, the wife and their unmarried children. Another precondition to avail of the benefits of the scheme is that none of the members of a family should own a pucca house in any part of India to receive Central assistance under the Mission.
Also read: RBI Holds Rates, Wants Faster Rollout Of Affordable Housing Programme
What are the four verticals under which subsidy will be provided?
The four verticals under which subsidy will be provided include:
While people from economically weaker sections (EWS) can seek Central assistance across all verticals, people from the low-income group (LIG) category can apply only CLSS component.
Whether a beneficiary can avail of benefits under more than one component?
A beneficiary can avail of benefits under one vertical only.
Who falls in the LIG and who falls in the EWS category? Are the definitions of the two terms sacrosanct?
According to the government, an EWS households is that which has an annual income of up to Rs 30 lakh. A household that has an annual income between Rs 3 lakh and Rs 6 lakh falls in the LIG category. However, states have been given the flexibility to redefine the annual income criteria according to their needs after seeking a prior approval from the union housing ministry.
Also read: More Tax Concessions On Rental Income Will Help Realise 'Housing For All' Dream
The division between categories is based on their income. Who will provide the income proof of the applicant to banks?
Applicants will be submitting self-certified proof of income. However, banks will be responsible to do the due diligence before granting of loans and providing Central assistance.
Are there any area restrictions for availing of the subsidy under the CLSS component?
A person from the EWS category cannot seek assistance if the carpet area of houses is over 30 square metres (SQM) . Similarly, a person from the LIG category can seek assistance for a house that has a carpet area of up to 60 sqm.
Are there any the preferred beneficiaries?
Yes. According to the government manual, scavengers, women (especially widows) , people belonging to the Scheduled Castes/ Scheduled Tribes/ Other Backward Classes & minorities, people with disabilities and transgenders will be preferred beneficiaries.
What if a beneficiary switches the loan?
In case you plan to change your lender to avail of the benefits of a falling interest rate regime, you will not be able to claim the benefit of interest subvention again. A beneficiary can claim the interest-linked subsidy on only one loan account.
Also read: All You Need To Know About 'Housing For All' Mission
Can beneficiaries form a group cooperative housing society to claim beneficiary-led individual subsidy?
People who intend to form a group cooperative housing society can claim benefits under the individual subsidy. However, they will have to meet the eligibility requirements for that.
What if you fail to utilise the sanctioned funds?
The money goes back to the government.
Also read: 5 Schemes That Can Inspire India's 'Housing For All'