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Reasons Behind Not Getting PMAY Subsidy on a Housing Loan

by Uneeb Khan

Owning a home is a dream come true for the average Indian, as it not just fulfils an individual’s desire to have a secure residence, it also helps one achieve an emotional milestone. However, wanting to become a homeowner and purchasing a house are two entirely different things. With real estate prices getting more expensive, and the inflation rate following – it is increasingly difficult for individuals with meagre incomes to achieve their dream of owning an affordable home.

The Pradhan Mantri Awas Yojana (PMAY) scheme is a means by which India looks to tackle the shortfall of affordable houses. Citizens can apply for this scheme online or offline, though the online method is quicker and less strenuous. The scheme has already made giant strides by providing beneficiaries with houses built from eco-conscious materials. 

While it’s an inclusive endeavour, only qualified individuals can opt for this interest subsidy. Before applying, it’s important to know that this scheme aims to help only those with low income in rural and urban areas. There are certain reasons why you may not be able to apply for this scheme.  

To learn more about the factors that could prevent you from qualifying for a PMAY subsidy, read on. 

Five Factors that Prevent You from Accessing the PMAY Housing Scheme

As mentioned above, certain factors may not allow you to benefit from the PMAY housing scheme. Below are five of these factors.

Your Spouse Previously Claimed a PMAY Interest Subsidy 

If your spouse has already availed of the PMAY benefits, this inherently disqualifies you from being eligible. One of the eligibility requirements for the scheme is that you or your spouse must not have accessed the PMAY housing before. So, before applying, we advise you to confirm that your spouse has never applied and gotten approved for this scheme.

Belonging to an Ineligible Income Group 

The PMAY scheme is designed to provide high-quality housing in rural and urban areas. It also prioritizes low-earning individuals, empowering them with the needed funds to own a home. 

To qualify, you need to belong to any of the following groups:

●     Low-income Group (LIG) 

Members who fall under this category earn between Rs.3 lakhs and Rs.6 lakhs yearly. If you currently earn within this income range, then you are eligible to apply. 

●     Middle Income Group (MIG-1)

Individuals who earn between Rs.6 lakh and Rs.12 lakh annually fall under thus category. Having an annual income that aligns with the above benchmark makes you eligible for a housing loan through the PMAY scheme.

●     Middle Income Group (MIG-2)

Citizens with an annual income between Rs.12 lakh and Rs.18 lakh belong in this group and qualify for the PMAY housing scheme. 

●     Economically Weak Section (EWS)

This category is for individuals that earn lower than Rs.3 lakh yearly. The scheme also caters to members of this category so they qualify. 

Note that other eligible individuals include senior citizens, transgender people, scheduled tribes (ST), scheduled caste (SC), and other minority groups. Not belonging to any of these groups means that you can’t access this housing loan. 

You Applied for an Unavailable Property

The PMAY scheme grants loans to enable you to cover expenses like the renovation of a house, a house purchase, and home construction, that’s it. Should you get creative and seek other options like the resale of a flat, you won’t get approved. 

You and Your Family Members Already Own a Property

The number one rule is to not own property elsewhere. Not adhering to this rule negatively affects your application for a housing loan under the PMAY scheme.

Even if you manage to apply, agents of the scheme will run a background check and won’t hesitate to deny your application if they find out that you secretly own property. 

You Have Benefitted from Other Housing Schemes 

The PMAY scheme is not the only housing scheme existing today, so you may have secured funding from other schemes. Having benefited from other schemes, we do not recommend applying for a spot on the PMAY list. 

This applies to your family members too, so none of you must have gotten approval under other schemes. Note that a simple background check will unravel any secret. 

Concluding Thoughts

Now, you know the reasons why you may not secure funding under PMAY The Ultimate. You can also visit the website to see PMAY eligibility criteria, apply, check your application status and check the beneficiary list.

The PMAY scheme has a mandate of delivering up to 2 crore homes to India’s rural and urban areas before 2022. This is in line with its “Housing for All” initiative. While the scheme aims to help the economically disadvantaged, it pays to apply if only you’re eligible. 

Remember, many households are without homes; so, applying without being eligible reduces the chances of these houses getting to those in need. 

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