Under the PMAY scheme, the government extends a subsidy of a maximum Rs.2.67 lakh to first time home buyers. As of January 2020, around 832,000 beneficiaries have received subsidy under this credit-linked subsidy scheme, amounting to Rs.20,983 crore.
Recently, many homebuyers complained of delay in receiving subsidies or its rejection. Usually, it takes central nodal agencies up to 6 months after submitting the subsidy application to access funds.
However, besides processing time, there could be several other reasons for this delay. While home buyers will not be able to control all reasons behind the delay, they can keep a tab on the probabilities to salvage the situation quickly.
Reasons behind a delay in receiving subsidy under PMAY Yojana
These are among the most prominent reasons that applicants must be aware of -
Reason 1: Failing to meet eligibility criteria
A common reason behind a delay or rejection is not meeting the PMAY eligibility. In order to qualify for this affordable housing scheme, individuals need to meet these criteria –
- Applicants must belong to any of these income segments – EWS, LIG, MIG-I or MIG-II.
- Their maximum family income in a year should not be over Rs.18 lakh.
- The carpet area of the property in question should be within 260 sqm.
- Applicants with a pucca house cannot qualify for this PMAY Yojana.
- They should not be a beneficiary of any housing schemes in India.
- A female family member must be either the sole or joint owner of the property in question.
Besides these, applicants should be Aadhaar cardholders and submit all required documents to qualify for a subsidy. Individuals who plan to apply for this housing scheme should consider using a PMAY eligibility calculator to gauge their chances of receiving a subsidy.
Reason 2: Inaccuracy in the application form
Any inaccuracy or mismatch in the information shared in the PMAY application form could be another major reason for delay. Individuals should be careful about the spellings and information while entering details like state name, district name, name of the head of the family, gender, etc.
Reason 3: Delay in disbursal by the government
Often due to exceptional situations, the subsidy processing and disbursal gets delayed. For instance, during this pandemic, several lending institutions have delayed the claim process. Besides this, delay on the part of the government to disburse funds to the central nodal agencies is often another reason.
Also, until 2019, PMAY scheme claims were submitted by the lending institutions in big batches. The large volume often added to processing time. However, recently the government has launched a Credit Linked Subsidy Services Awas Portal or the CLAP to simplify it. Once the subsidy application is submitted, applicants receive an SMS with an application ID. By using that application ID, they can easily check their PMAY status.
Reason 4: Existing borrower opted for a balance transfer
Home loan borrowers are not eligible for PMAY subsidy if they transfer their loan balance to another lender. It is because the subsidy amount is computed on the eligible loan amount for the entire tenor, i.e., 20 years.
Regardless, if borrowers wish to transfer their loan balance, they will have to get the subsidy application with their current lender cancelled. However, they could reapply for this subsidy again through a new lender as per applicable norms.
To avoid such a situation altogether, individuals should avail a home loan from a lending institution that offers a competitive rate of interest. Usually, leading financial institutions also bring pre-approved offers that expedite the borrowing process. Such offers are available on most financial products, including home loans and loans against property. You can also check your pre-approved offer online by entering just your name and contact details.
These are some common reasons behind the delay in receiving a subsidy under the PMAY scheme. In case an applicant wants to find out the exact reason behind a delay, he/she could reach out to PMAY’s grievance portal via email.
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