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Tata Capital > Blog > Loan for Home > Common Mistakes you Make While Applying for a Home Loan Under PMAY

Loan for Home

Common Mistakes you Make While Applying for a Home Loan Under PMAY

Common Mistakes you Make While Applying for a Home Loan Under PMAY

“A house is made of bricks and beams, but a home is made of hopes and dreams.” To give wings to hopes and dreams of millions of Indians who had no place to call home, the Pradhan Mantri Awas Yojana was launched, back in 2015. The PMAY is a Credit-Linked Subsidy Scheme (CLSS) aiming to provide affordable housing to all eligible beneficiaries by the year 2022.

However, lenders can reject an application for home loan subsidy under PMAY in case of non-fulfilment of certain specific criteria. Let’s find out the common reasons for application rejection.

Reason #1 Pre-Ownership

One of the Pradhan Mantri Awas Yojana eligibility criteria for home loan subsidy is that the applicant or their immediate family members must not have a property registered under their name. Pre-ownership of a home by the applicant or any of their household members will make them ineligible for availing PMAY advantages.

Additional Read – How is PMAY Beneficial for You?

Reason #2 Previously Availed Central Assistance

To avail Pradhan Mantri Awas Yojana subsidy, an applicant or any of the applicant’s family members must not have availed central assistance under any other housing scheme. If it is found that central assistance was previously availed, the applicant’s Pradhan Mantri Awas Yojana form for home loan subsidy will be rejected.

Reason #3 Previously Availed Home Loan Subsidy

This reason for Pradhan Mantri housing loan rejection pertains to married couples. Now, as per PMAY eligibility criteria, either of the spouse or both (in the form of a joint loan) can avail a single home loan subsidy. If one of the spouses has already availed of the Pradhan Mantri Awas Yojana subsidy, the application of the partner or a joint application may be turned down.

Reason #4 Property that Lies Outside the Scope of PMAY

One can avail of the Pradhan Mantri Awas Yojana either for newly constructed houses or for the expansion of an already existing property. In case an applicant applies for PMAY for any other purpose, for example – a resale flat, the lender will decline the application.

Reason #5 Applying Under the Wrong Income Group

The most common reason for PM Awas Yojana application rejection is applying under the wrong income group. The PMAY scheme is available to aspiring homeowners, provided they belong to any of the following income categories-

  • EWS or Economically Weaker Section – Households with an annual income below Rs. 3 lakhs
  • LIG or Lower Income Groups – Households with annual income between Rs. 3 lakhs to Rs. 6 lakhs
  • MIG I or Middle-Income Group I – Households with annual income between Rs. 6 lakhs to Rs. 12 lakhs
  • MIG II or Middle-Income Group II – Households with annual income between Rs. 12 lakhs to Rs. 18 lakhs

Before applying for Pradhan Mantri Awas Yojana online, double-check to see if you’ve chosen the correct income group; otherwise, you run the risk of a sure shot rejection.

Additional Read – How to Get Subsidy Benefit Under PMAY Home Loan in 2020?

Steer clear of the mistakes discussed above, and you can avail of the Pradhan Mantri Awas Yojana subsidy with ease. To avail PMAY online, apply with India’s leading lending institution –Tata Capital. Fill in the Pradhan Mantri Awas Yojana form, submit the relevant and required documents, and receive your home loan subsidy in a jiffy! Don’t forget to use our reliable online PMAY calculator before you apply. To know more log on to our website today!

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