The Mumbai-headquartered Aadhar Housing Finance Limited (AHFL) company has come up with a new home loan scheme for the low income group whereby the borrowers will not have to furnish income proof documents to avail housing loan.
The housing finance company on Tuesday said the scheme would strengthen finance options to the "self-employed professionals in the economically weaker and Low Income Group segments in the urban areas and towns".
Under the scheme, small business owners, self-employed individuals or artisans engaged in retail trade, skilled job, manufacturing and services with limited capital investment with a monthly income between Rs.5,000 and Rs.30,000 would qualify for the loan.
"This would also incentivise the overall growth and development for the economically weaker section and low income group segments under the affordable housing sector which is a key driver to the social inclusion and economic growth of the country," said Deo Shankar Tripathi, the company's chief executive officer, in a statement.
He said the central government has assessed the housing requirement at two crore in urban areas and four crore in rural areas.
"With rapid urbanisation the demand for housing in urban and statutory towns will go up considerably by 2022. About 95 percent of the urban requirement falls under the economically weaker section and the low income group segment who are predominantly self employed and fall under the informal segment," he said.
The maximum amount of loan which can be availed is Rs.15 lakh, meant for purchase of flat, plot of land and construction thereon, renovation and modification of existing housing.
The company said although no income proof documents would be required to avail finance under this scheme, normal KYC (Know your customer) and CIBIL (Credit Information Bureau (India) Limited) checks would be carried out.