Looking to take a home loan but don’t have a salary slip? Then keep the tension away and read today’s article immediately. Today’s article will discuss how you can take a loan from the bank without a salary slip or ITR. Government banks in India are considering new ways to provide home loans to those who do not have standard income documents, such as salary slips or income tax returns (ITR). This scheme will use some alternative methods to assess income.
If you want to buy a house but do not have traditional income proofs like ITR or salary slips, this scheme could open the door for you to obtain a home loan. Major government banks are planning to provide loans based on other proofs of income under this scheme.
How the new scheme will work
Banks may adopt new methods to verify applicants’ income. For example, if someone is a street vendor, sales made through their QR code could be considered as proof of income. Additionally, income can also be estimated from average monthly billing.
Objectives of the Scheme and Pradhan Mantri Awas Yojana (PMAY)
The scheme is in sync with the government’s target of building 3 crore houses under PMAY of 2024. The PMAY scheme includes rehabilitation of slum dwellers, interest waivers, and providing affordable housing for people from economically weaker sections and middle-income groups.
Relief for those without income proof
Typically, those who do not have income documents take loans from non-banking financial companies (NBFCs), which charge 1.5-2% higher interest rates than banks. Under this scheme, government banks will be able to provide loans at a low interest rate by joining the affordable housing scheme.
Field-Based Income Assessment
Many government banks are considering assessing the income of applicants by going to the field. Recently, in a meeting of the Indian Bankers’ Association, it was suggested that the government provide a partial guarantee in cases where income documents are not available.
Big relief for small traders
If government banks give home loans without income documents, it will be a big relief for small businessmen and people in the unorganized sector.