Loans: No PMAY subsidy if HFC’s inability to disburse loan leads to balance transfer

By Chaitali Dutta

We took a house loan from ART Finance in 2018. We received PMAY subsidy of Rs 2.32 lakh. Now it is not in position to disburse the loan amount. We plan to go for balance transfer to SBI but ART Finance is asking for the whole amount including subsidy. Do we have to repay the subsidy in case of balance transfer and how can we get the benefit of PMAY subsidy again?
—Manvi Jain
I presume that you have not started repaying the loan by EMI as you mention that full disbursal of loan did not happen. Perhaps you have been paying pre-EMI to clear the interest on the disbursed amount. It is unfortunate that your loan provider is not in a position to continue the facility. Here, you will have to repay the subsidy to the existing financial institution. You will also not be eligible to avail of the subsidy again.

I have a loan of Rs 25 lakh and want to apply for PMAY. The bank wants a letter on the society letter head which the society refuses to give. The bank says it cannot process the application without it. What should I do?
—A M Ashfaq
The PMAY is availed through the PLI (primary lending institutions) only from where you are availing the loan. You may either convince the society to issue the letter which the bank wants or look at transferring the outstanding to another bank and applying for PMAY from the new bank. Do keep various deadlines in mind before making a decision.

I had taken a home loan of Rs 16 lakh for 24 years from SBI in October 2015. This is my first home and I have been repaying the loan promptly. How can I apply for the interest subsidy?
—Smitha
From the details you have shared you are eligible to avail of the subsidy. I suggest you give your request for the subsidy and enquiring about the documents required, in a plain paper letter. Have an acknowledged copy with you as proof of submission. If in 15-20 days you do not receive a reply from the branch, write to the LHO Head of Grievances. The details will be available here https://sbi.co.in/web/customer-care/addresses-and-helpline-nos-of-grievances-redressal-cell. The systems are in place for the complaint and grievance departments and your query will be addressed within a set time frame.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com).
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