How to Avoid Claim Rejection for Pradhan Mantri Awas (PMAY) Yojana

1. Not Part of Income Groups That Are Eligible

Is your PMAY subsidy rejected? One of the main reasons is that you actually don’t belong to the eligible income group.

• For PMAY, you need to belong to one of the four groups: the EWS or Economically Weaker Section, the LIG or Lower Income Group, MIG-I or Middle Income Group-I, MIG-II or Middle Income Group-II.

• If the annual income of the family is under Rs. 3 Lakhs, you belong to the EWS category.

• If the household’s annual income is in the Rs. 3 Lakhs - Rs. 6 Lakhs bracket, you belong to the lower-income group.

• If the annual family income is in the bracket of Rs. 6 Lakhs - Rs. 12 Lakhs, you belong to the mid-income group I. If the annual household income is in the Rs. 12 Lakhs - Rs. 18 Lakhs category, you belong to the mid-income group II.

• If you are not part of these groups, the chances of the PMAY subsidy rejected are high.

2. Property Registered Under Your / Spouse’s Name

• The PMAY is aimed at providing housing subsidy for first-time homebuyers. But if you already have a property registered in your or your spouse’s name, you are not eligible to claim any sort of benefits as part of PMAY. So, if you claim benefits, the result is: PMAY subsidy rejected.

3. Already Availing Benefit of Other Scheme

• Is your claim for benefits under PMAY rejected? Here’s another reason why.

There are many schemes that offer benefits for housing and if you have chosen other central or state schemes pertaining to housing, you will not be eligible to avail PMAY benefits. Even if any members of your family have availed of benefits under other schemes, you may not be considered eligible.

4. Only Certain Types of Property to be Considered for PMAY Benefit

You can claim benefits under PMAY for:

• Construction or buying of the first house that is owned by the beneficiary family.

• Expansion or repair of property under the Credit Linked Subsidy Scheme (CLSS). The condition that the house bought, constructed, repaired or extended should be the first house owned by the beneficiary household applies.

• House built or bought under the PMAY should be in the joint name of the male head of the household and his wife or female head of the household.

• In case there is no female member in the household, the house should be in the name of the male member.

• The carpet area of a house should be up to 30 and 60 square metres for economically weaker groups and lower-income categories, respectively to get CLSS.

• The carpet area of a house should be 160 and 200 square metres for mid-income categories I and II, respectively.

5. Do Not Apply to Property Which is Not Covered Under PMAY

• As earlier mentioned, PMAY applies to property bought by a beneficiary family for the first time. Also, if any members of your family, ie. you, your spouse or unmarried children have another property registered in any of your names, the application for PMAY benefits cannot be approved and you will get the status: PMAY subsidy rejected.

While all these are major PMAY rejection reasons, there are other reasons for rejection. One of them is that the applicant has not entered their name as per the Aadhaar card name. Then, the application may be rejected under the ‘borrower name does not match’ status. Another is the mismatch in declared income and actual borrower’s income. Mistakes in filling out forms and applying under the wrong income are also other PMAY rejection reasons.