The PMAY has been a boon for all aspiring home buyers in India. Under the initiative, you are eligible to get a subsidy on the home loan interest rate. However, to qualify for the benefit, you must meet specific requirements. Read on to know more about how you can avoid your claim rejection.
In 2015, the government of India introduced the Pradhan Mantri Awas Yojana or PMAY to provide a pucca house for all Indian citizens, especially to those belonging to the lower-income group. The PMAY initiative is an ambitious affordable housing plan, under which the government aims to build more than two crore pucca houses in various urban locations. The primary objective of this initiative is to eliminate slums and homelessness in India.
Apart from building new homes, under the CLSS (Credit Linked Subsidy Scheme), which is an integral part of the PMAY, the government aims to provide interest subsidy on home loans to encourage people from lower-income groups to become homeowners. If you are looking to buy a new home and want to avail of the PMAY benefits, you must know its eligibility requirements. And if you fail to meet the prerequisites, your application will be rejected.
Some of the common reasons why PMAY are rejected and what you must do to avoid it are discussed below:
As per the PMAY rules, only first-time homebuyers can benefit from subsidy on the interest rate. So, if you or any of your family members own a house anywhere in India, your claim will be rejected.
In India, apart from the PMAY, there are several other government-assisted housing schemes. If you or any of your family members have availed financial support under other state or central government housing schemes, you cannot claim PMAY interest subsidy benefits. So, it is paramount that you assess if you have availed grant from any other government scheme before applying for a home loan under PMAY.
If you are a married applicant, you can either apply for the PMAY benefits individually or with your spouse. Together you can apply for a single subsidy. However, if either of you has already availed the PMAY benefit, your claim will be rejected.
According to the Pradhan Mantri Awas Yojana mandate, the interest subsidy is available only for home loans to purchase a new home, construct a new home, and extend the existing property. If you use the loan amount for any other purposes, your claim will be rejected. So, when you apply for an online home loan, use the PMAY benefits to purchase a new home or for the home extension to avoid rejection.
Important Things to Remember While Applying for PMAY interest subsidy benefit
You can apply for a home loan with any lender of your choice provided they are authorised to grant the subsidy benefits and apply for a loan under the PMAY to get the benefits. So, make sure that you compare the offer from different lenders to choose the right lender that offers the loan at an affordable interest rate, has low processing fees, and is known to offer the best customer service.
Before you apply for a home loan, it is paramount that you assess your finances well and have a fixed budget to know the maximum amount you can afford to borrow so that the repayment is easy. It is best advised to use a home loan EMI calculator to calculate the EMI for the loan amount you wish to borrow and make an informed borrowing decision.