On June 1, 2015, the Central Government of India launched an affordable housing scheme known as Pradhan Mantri Awas Yojana. It was the Government's means to aim for "Housing for All" by 2022. Under this scheme, an eligible person can apply for a home loan up to ₹6,00,000 and get a 6.5% subsidy of interest rates for up to ₹2,67,000.

But before you can enjoy the subsidy benefits, you need to know how to apply for Pradhan Mantri Awas Yojana successfully. For that, avoid making certain mistakes. Here's a look.

3 Cases When Your PMAY Application Might Get Rejected

You Have a Property Pre-Registered to Your Name

Pradhan Mantri Awas Yojana is available for first-time homebuyers only. So, make sure you are already not a homeowner or don't have a pucca house registered in your name or in any of your immediate family members' names to claim the benefits of PMAY.

You Don't Belong to an Eligible Income Group

Your Pradhan Mantri Awas Yojana application might be rejected if you don't fall under one of the eligible income groups.

How to apply for Pradhan Mantri Awas Yojana under the right income group? The mission was effective for middle-income groups till March 31, 2021. Currently, the scheme is open for the following groups till March 31, 2022:

  • Economically weaker section: With annual income up to ₹3,00,000.
  • Low-income group: With annual income between ₹3,00,001-₹6,00,000.

Make sure you belong to any of the above groups to apply successfully for a home loan under PMAY.

Also, Read Impact Of EMI Default On CIBIL

You've Opted for Central Assistance under a Different Housing Scheme

Besides Pradhan Mantri Awas Yojana, the Central Government of India offers various subsidy schemes. Make sure that you or any of your family members have not taken Government assistance under one of affordable housing scheme. Then only you can apply for a house loan under PMAY.

Other Reasons for a PMAY Application to be Rejected

Your Spouse Has Already Applied for PMAY

Did you know how to apply for the PMAY scheme as a couple? You need to go for a joint application or a single application under your or your spouse's name for a single subsidy. So, make sure not to apply for 2 different subsidies. If either of you have opted for the scheme already, the lender would cancel the second application or even a joint one.

The Property You Desire Lies Outside the Scope of PM Awas Yojana

Pradhan Mantri Awas Yojana applies solely to the construction or purchase of a new house or expanding an existing property. If you try to enjoy the scheme's benefits on other kinds of property like a resale flat, your lender would reject your application. Make sure to check the scheme's scope before applying for it.

PMAY was introduced in 3 phases out of which only the 3rd phase is operational now till March 31, 2022. Since now you know how to apply for the PMAY scheme successfully, avoid the above mistakes and go for the loan before this date to avail yourself of affordable housing!

Also, Read Guide To Register For ENACH