There is great news for those who dream of owning a house. Now banks will give loans to buy a house without any guarantee. Till now, home loan borrowers have to mortgage their house papers with the bank to get a loan from the bank, like a guarantee. But, the government has now said to launch a new scheme in which home loan borrowers will neither need to mortgage their papers nor will they need any guarantor. Not only this, there will be no need for much paperwork to take a loan under this scheme.
According to the report of the Economic Times, the government is going to launch a new housing scheme soon. Its purpose is to provide homes to the people of low and middle-income groups. The purpose of the scheme is to provide the facility of home loans to middle-class people without any guarantee i.e. zero collateral. For this loan, they will neither have to mortgage their property papers nor will they need any guarantor.
How much loan amount will be available?
Under this new housing scheme of the government, loans up to Rs 20 lakh will be made available to lower and middle-class people without any guarantee. A time of up to 30 years will be given to repay this loan, that is, the tenure of this loan will be 30 years. Till now, only loans up to Rs 8 lakh are given without any collateral.
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The government will take the guarantee of the loan.
The government itself will take the guarantee of a part of the loan available under the scheme. Not only this, you will also get a home loan with the guarantee of a third party. For this, you will not need to mortgage any document. Through this scheme, loans will also be given to those people who do not have any documented income or supporting documents, and banks do not give them loans without these documents. It is believed that in case of any default, the government will take the guarantee of 70 percent of the amount.
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Talks going on between the government and the banks
Discussions are going on between all the stakeholders regarding the Credit Risk Guarantee Fund Scheme. For this, all the issues are being discussed between the Ministry of Urban Development, the National Housing Bank, and other commercial banks. Banks argue that the scheme can be implemented only after there is clarity on things like income required for the loan, EMI, and net income every month.
