PMAY: Centre contemplates providing home loans to people without mandatory income proofs

Pradhan Mantri Awas Yojana (PMAY) 2024: If you want to take a home loan but you do not have the necessary income documents like an income tax return or salary slip, you can still easily get a loan from the nearest bank.

In an important development, the major government banks in India are thinking of giving home loans to people without required income documents. Under this scheme, new methods of assessing income will be adopted.

For example, a street vendor's earnings from a QR code can be considered as their income, or their income can also be estimated from average billing.

This scheme is set to be introduced at the time of the government's decision to build 3 crore houses under the Pradhan Mantri Awas Yojana (PMAY) 2024.

PMAY includes rehabilitation of slum dwellers, providing interest rebate to economically weaker and middle income groups and providing affordable houses.

Usually those who do not have income documents take loans from non-banking financial companies (NBFCs), whose interest rate is 1.5-2 per cent higher than banks.

But now, government banks are considering whether they can give loans without income documents, and for this, can they assess the income of people by going to their working area.

In a recent meeting of the Indian Banks Association, many bankers suggested that the government should give a partial guarantee for loans under PMAY which do not have income documents.

If government banks approve home loans without income documents, it will turn to be a huge relief for small businessmen.