Home Loan: If you want to buy a house, but you do not have income proof like an income tax return or salary slip, then the way to a home loan can open for you. The country's leading government banks are considering giving home loans to people without normal income documents. Some new methods will be used to test income in this scheme.

How can the new scheme work?

Government banks are now considering new ways to test the income of home loan borrowers. For example, if someone is a street vendor, then his earnings through a QR code can be considered as his income. Apart from this, his income can also be estimated from average billing.

The objective of the scheme and Pradhan Mantri Awas Yojana

This scheme is being made at a time when approval has been given to build 3 crore houses under Pradhan Mantri Awas Yojana (PMAY) 2024. PMAY includes rehabilitation of slum dwellers, interest rebate schemes for economically weaker sections and middle-income group people, and provision of affordable houses.

Why is there relief for those without income proof?

Usually, those who do not have documents of their income take loans from non-banking financial companies (NBFCs), which charge 1.5-2% more interest than banks. Under this scheme, government banks will be able to provide loans to such people at lower interest rates by joining the affordable housing scheme. However, banks still needed documents like income tax returns and bank statements.

Can income be assessed in the field?

Many government banks are considering that they can assess the income of people by going to the field and sanctioning home loans. In a recent meeting of the Indian Banks Association, many bankers suggested that the government should give partial guarantees for cases where there are no income documents.

Big relief for small businessmen

If government banks approve home loans without income documents, it will be a big relief for small businessmen and people from the unorganized sector.