The Indian Government introduced PMAY in 2015 with an aim to provide ”housing for all” by 2022. This scheme was designed to extend financial aid to the urban and rural population of the country. And fulfil their dream to become a homeowner.

Applying for a subsidy under this affordable housing scheme is not an issue. The online application process has simplified it to a great extent. However, completing this process is not enough to be eligible for this scheme. Borrowers will only receive the benefits if they fulfil all the criteria.

Even after meeting the required eligibility parameters and completing a successful application process.Individuals might fail to receive the benefits owing to several reasons, as discussed below.

Reasons in the delay of PMAY subsidy

Here are the reasons behind the delay in receiving the subsidy of Pradhan Mantri Awas Yojana –

Issues with the application form

One of the primary reasons for delays in receiving pmay subsidy is inaccurate filling up of application form. Individuals need to provide their personal, property and professional information to complete this process. Hence, any mistakes here can result in a rejection of this form.

During advance verification, it is often noted that individuals have made spelling mistakes or put in a different address than the one on their address proof, or mentioned a wrong contact number, resulting in confusion and such delays.

Also, a point to remember here is that subsidies under this affordable housing scheme are only available to purchase new properties or complete any renovation work of the existing one. Competent authorities will not entertain any other purpose.

Not submitting required documents

Issues with the documentation also lead to delays and subsequent rejection of PMAY applications. Registering for this scheme does not require one to submit any papers. However, he/she will need them during the subsequent home loan application.

Financial institutions ask for personal, property and income details with a home loan application. Therefore, submitting these papers without fail is mandatory to complete this application process.

Applying under different income group

As specifically mentioned in the guidelines of PM Awas Yojana. This scheme is only reserved for Indian families who have an annual income of up to Rs.18 lakh. Moreover, there are other classifications as well within this segment. Which include EWS, LIG, and MIG, with the annual income for every group being pre-determined.

Therefore, if anyone belonging to the LIG applies under MIG mistakenly, the application remains pending for further clarification. 

Issues with the property

Issues with concerned properties can also result in delays in the processing of this scheme application. In addition, there are specific directives regarding property sizes and their placement within the statutory town registered in the 2011 Census.

Additionally, the carpet area of each property was limited as per the income group. For instance, if you have an annual income of less than Rs.3 lakh, then you will qualify under EWS, and the property carpet area threshold here is 60 square meter. However, if you apply for a property with more than 60 sq. mt., your application will be on hold for clarification, which will inevitably delay the subsidy process.

Furthermore, if you apply for PMAY know the eligibility criteria beforehand to avoid any difficulties.

Previously availed subsidy

As mention in the guidelines of this affordable housing scheme. This facility is only reserved for first-time homebuyers and the ones who have not availed any government subsidy before. Nevertheless, a common mistake here in case of a joint home loan application.If either husband or wife has already availed any government housing scheme, they are not considered eligible.

Along with these five pointers, failing to meet any of the eligibility criteria of PMAY can also result in delays in subsidy. Therefore, it is crucial to double-check and ensure everything is in order before applying, which ease the way of becoming a home owner with PMAY.

If an individual fails to secure a subsidised home loan via PMAY, he/she can alternatively apply for one from any financial institution against affordable interest rates.

NBFCs also extend pre-approved offers that help to streamline this loan application process and save time. These offers are available on home loans, loans against property, etc. Individuals can know their pre-approved offers online with a few basic details.

Since its implementation, PMAY has provided a subsidy of Rs.20,983 crore to 8,32,000 beneficiaries as of January 2020. 

Also, as per the economic package announced in November 2020, the government has increased its allocation to this scheme. The CLSS benefits now stand at Rs.18,000 crore compared to the previous figure of Rs.8,000 crore. 

With such benefits on offer, knowing the reasons behind the delays in receiving PMAY subsidies can help future borrowers to avoid these pitfalls. The benefit of Pradhan Mantri Awas Yojana can only be enjoyed by those who remain careful of these points while applying.

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