The introduction of the Pradhan Mantri Awas Yojana has been a boon for many aspiring home buyers in India. The scheme provides subsidy on the home loan interest rate. However, to claim the benefit, you must meet specific requirements. Read on to know the tips to avoid PMAY claim rejection. 

To provide affordable housing to all Indian citizens, especially people belonging to the lower-income group, the government of India launched the Pradhan Mantri Awas Yojana in 2015. The PMAY is an ambitious plan of the Indian government, and under the plan, the government aims to build over two crore homes in different parts of the country. The significant feature of such new construction is that the houses are constructed using environment-friendly technology. The main objective of this scheme is to end homelessness in the country.

Apart from constructing new homes, under the scheme, the government has also introduced the CLSS (credit linked subsidy scheme) initiative. It provides subsidy on the home loan interest rate to the aspiring homeowners. It is a great boon for people belonging to the EWS (economically weaker section) and LIG (lower income group). If you are looking to buy a new home and want to avail the PMAY benefits, you must be aware of the eligibility criteria. If you fail to meet the pre-requisites, your application for may be rejected.

Some of the most common reasons why PMAY claims are rejected and what to do to avoid rejection is discussed below:

• As per the Pradhan Mantri Awas Yojana mandate, you can claim for the benefit only if you or any of your family members do not own a house in any part of India. If you or any of your family members have a house registered under their name, your claim will be rejected. So, apply for the PMAY benefit only if you are a first-time homebuyer to avoid rejection.

• Apart from PMAY, there are many other central-government assisted housing schemes. If you or any of your family members have availed the benefit of any other scheme, the chances are that your PMAY benefit claim will be rejected. Hence, it is important to check if you or your family members have not availed any other government assistance before applying for a housing loan subsidy under PMAY.

• If you are married and wish to apply for the PMAY subsidy, you can either apply as an individual or jointly with your spouse. Together, you are eligible only for a single subsidy. If either of you has already availed the allowance, your claim will be rejected.

• The credit-linked subsidy Scheme (CLSS) benefits under the PMAY scheme is available only for the purchase of a new home, construction of a home or for expansion of the existing home. The claims for any other purposes will be rejected. So, to avoid rejection, make sure that you apply for the benefit either for purchasing a new home or extending your existing property.

Important tips to remember while applying for PMAY benefit

• Before you apply for a PMAY subsidy, it is important that you carefully compare the loan offers of different lenders. You must compare the services offered, fees charged, and the interest rate before choosing the right lender to suit your needs.

• It is advisable that you assess your finances thoroughly and determine the maximum EMI amount you can afford to pay. To calculate the EMI, you can use the online EMI calculator. This will help you plan your budget wisely and make timely repayments.