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Tata Capital > Blog > Loan for Home > Top 5 Reasons for Not Receiving PMAY Subsidy on Housing Loan

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Top 5 Reasons for Not Receiving PMAY Subsidy on Housing Loan

Top 5 Reasons for Not Receiving PMAY Subsidy on Housing Loan

There’s nothing better than the feeling of having a home you can call your own. But, this is still a far-fetched dream for countless Indians. And to change this staggering reality, the Government of India has launched various affordable housing schemes. The most notable is the Pradhan Mantri Awas Yojana, or PMAY that offers you subsidised or reduced housing loan interest rates.

However, lending institutions can turn down your application for a housing loan subsidy under the scheme if you don’t fulfil the specified criteria. Let us take a look at the top reasons you might have to face home loan subsidy rejection.

1. Your spouse has already claimed the benefits

In the case of married couples, either of the spouse or both (through a joint loan) qualify for a single subsidy. Thus, if you are married, you must ensure that your spouse hasn’t already claimed the assistance. If they have, then your application will indeed get rejected.

2. You applied under the wrong income group

One of the most common PMAY rejection reasons is applying under the wrong income group. To be eligible for the benefits, aspiring homeowners must belong to:

  • Low-Income Group (LIG)- Households with yearly income between Rs. 3 lakhs and Rs. 6 lakhs
  • Middle Income Group (MIG-I)- Households with yearly annual income between Rs. 6 lakhs and Rs. 12 lakhs
  • Middle Income Group (MIG-II)- Households with yearly income between Rs. 12 lakhs and Rs. 18 lakhs
  • Economically Weaker Sections (EWS)- Households with yearly income lower than Rs. 3 lakhs

Hence, check whether you fall under any of these categories before applying to avoid rejection.

Additional Read: How Much Time Does It Take to Get PMAY Subsidy?

3. You applied for a property that PMAY does not cover

Pradhan Mantri Awas Yojana only covers the construction or purchase of a new home or the expansion of an old property. Therefore, if you apply for the subsidy for any other property like a resale flat, you are bound to face PMAY subsidy rejection.

4. You have central assistance under any other scheme

If you or any member of your family has availed the benefit of another affordable housing scheme offered by the central government, you will not be eligible for a home loan subsidy under Pradhan Mantri Awas Yojana.

5. You or your family members own a property

One of the primary eligibility requirements for this government-backed Credit Linked Subsidy Scheme (CLSS) is that the applicant should not own any pucca property. Also, none of your immediate family members should own a property in any part of the country, or your application will stand rejected.

So, steer clear of these common mistakes, and you will easily receive your housing loan subsidy!

Additional Read: Detailed Guide on How to Fill up PMAY Application Form

Looking for a trusted lender for your housing needs?

The Pradhan Mantri Awas Yojana supports the housing dreams of numerous Indians. If you are eligible for the scheme, avail of a housing loan with Tata Capital!

Score attractive home loan interest rates flexible repayment solutions and make your home buying experience effortless. So why wait? Get in touch with Tata Capital today!

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