Home Loan Scheme for EWS, LIG and MIG: Urban Areas

Scheme Introduction: A Brief Overview

Owning a house can be difficult for families with limited income, particularly for people working in the unorganised sector who may not have regular salaries or conventional income documents. To make housing finance more accessible to such households, the Government of India has included the Home Loan Scheme for EWS, LIG and MIG: Urban Areas (HL-U) on the JanSamarth Portal. The facility helps eligible urban families from the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) access home loans through participating banks and financial institutions. For eligible EWS and LIG borrowers, credit guarantee support of up to 70% of the amount in default is available under the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH), subject to its conditions. This support encourages lending institutions to provide housing finance to people who may otherwise find it difficult to obtain a home loan.

JanSamarth is a national digital portal managed under the Department of Financial Services (DFS), Ministry of Finance. It was launched on 6 June 2022 to bring different credit-linked Central Government schemes onto a single platform and simplify the process of checking eligibility and accessing institutional credit. The Home Loan Scheme for EWS, LIG and MIG is one of the schemes listed on this portal. The related low-income housing credit guarantee mechanism is supported by the National Credit Guarantee Trustee Company Limited (NCGTC) under the housing framework of the Ministry of Housing and Urban Affairs (MoHUA). Under CRGFTLIH, eligible EWS and LIG home loans of up to ₹20 lakh for houses with a carpet area of up to 60 square metres can receive guarantee coverage of up to 70% of the amount in default. This guarantee protects eligible lending institutions against part of their credit risk; it is not a direct payment or subsidy to the borrower.

The main objective of this facility is to improve access to formal housing finance for urban households, especially low-income families and workers who may have limited traditional income documentation. It is particularly relevant to people such as small traders, shopkeepers, construction workers, domestic workers, street vendors and other informal-sector workers who need financial support to purchase or construct a house. However, the availability of a credit guarantee does not mean that every applicant will automatically receive a loan. The participating bank or housing finance company assesses the applicant's repayment capacity, documents and property details before deciding the loan amount, interest rate, repayment period and other conditions.

Applicants should also understand the difference between this home-loan facility and the Interest Subsidy Scheme (ISS) under Pradhan Mantri Awas Yojana–Urban 2.0 (PMAY-U 2.0). Under the ISS component, eligible EWS, LIG and MIG households with an annual income of up to ₹9 lakh can receive an interest subsidy of 4% on the first ₹8 lakh of an eligible home loan, with a maximum actual subsidy of ₹1.80 lakh. The eligible home loan can be up to ₹25 lakh for a house valued at up to ₹35 lakh, subject to the prescribed conditions. This interest subsidy is a separate benefit under PMAY-U 2.0 and should not be confused with the credit guarantee available under CRGFTLIH.

To explore the home-loan facility, applicants can open the JanSamarth Home Loan Scheme page, check the available eligibility requirements and proceed with the application through the portal. The selected lending institution will carry out the necessary verification and decide whether to sanction the loan. Applicants can contact the concerned bank for loan-specific queries or use the JanSamarth Grievance Portal for assistance with portal-related issues.

Apart from this facility, readers can explore other housing-related schemes such as the Pradhan Mantri Awas Yojana–Urban 2.0 provides housing assistance to eligible urban families through different components, while the Housing Loan Interest Subsidy Scheme explains the interest subsidy available to eligible home-loan borrowers under PMAY-U 2.0. These schemes offer different forms of housing support and can help readers understand the options available for purchasing or constructing a home.

Scheme Benefits

The Home Loan Scheme for EWS, LIG and MIG: Urban Areas helps families with limited income access housing finance through participating banks and financial institutions. It is particularly useful for people who may not have regular salary slips or traditional income documents but can demonstrate their financial activity through banking transactions. The main benefits of this facility include:

• Eligible applicants can obtain home loans to purchase or construct a new house or flat.
• Applicants can also seek loans to purchase an existing house or flat, or to extend, repair or renovate their existing house, subject to the selected bank's terms.
• Individuals with annual income of up to ₹9 lakh can apply, including eligible EWS, LIG and MIG households.
• People with limited or no traditional income documents may also be considered if they have a regular source of income and can show digital records of banking and other economic activities.
• Small traders, shopkeepers, self-employed individuals, skilled and semi-skilled workers, artisans and eligible beneficiaries of schemes such as PM SVANidhi, PM Vishwakarma, Mudra and Stand-Up India can benefit from the facility.
• Income from up to four eligible household members can be combined to assess the applicant's total annual income, subject to the participating bank's conditions.
• Eligible EWS and LIG borrowers can receive credit guarantee coverage of up to 70% of the amount in default on qualifying home loans of up to ₹20 lakh, for a first house with a carpet area of up to 60 square metres. This support helps lending institutions manage credit risk and improve access to housing finance.
• Eligible applicants can access home loans with repayment periods of up to 25 years, depending on the lender's age and repayment conditions.
• The JanSamarth Portal provides a common digital platform to check scheme eligibility and connect with participating lending institutions, making it easier to explore available home-loan options.

The actual loan amount, interest rate, margin, repayment period and other conditions depend on the selected bank or housing finance company. The credit guarantee is provided to eligible lending institutions and is not a direct cash benefit or loan subsidy paid to the applicant.

Loan Amount, Interest Rate and Repayment Period

The loan amount, interest rate and repayment period under the Home Loan Scheme for EWS, LIG and MIG: Urban Areas are decided by the participating bank or housing finance company after assessing the applicant's income, repayment capacity, property value and other details. There is no single fixed interest rate or repayment period applicable to every applicant under the JanSamarth listing.

• Loan amount: The amount offered depends on the applicant's repayment capacity, property value and the lending institution's home-loan policy. Under the related CRGFTLIH credit guarantee framework, eligible housing loans for purchasing or constructing a first house must not exceed ₹20 lakh. This ₹20 lakh limit applies to the guarantee framework and should not be treated as a universal maximum loan amount for every HL-U applicant.
• Interest rate: The bank or housing finance company determines the applicable interest rate. For loans covered under CRGFTLIH, the prescribed maximum interest-rate limits are up to 4 percentage points above the RBI repo rate for scheduled commercial banks and up to 7 percentage points above the repo rate for other eligible housing finance companies, NBFCs and member lending institutions.
• Repayment period: The repayment tenure is decided by the lending institution based on the applicant's age, income, loan amount and repayment capacity. The CRGFTLIH guidelines provide guarantee coverage for up to 25 years or the actual housing-loan tenure, whichever is earlier. This is the guarantee coverage period and does not mean that every borrower automatically receives a 25-year repayment tenure.
• Other charges: Processing charges, margin requirements, insurance and other applicable costs may depend on the selected lender and the terms of the loan.

Note: Before accepting a loan offer, applicants should compare the interest rate, EMI, repayment tenure, processing charges and other conditions offered by the bank. The final loan terms should be checked in the sanction letter issued by the lending institution.

Eligibility Requirements

The Home Loan Scheme for EWS, LIG and MIG: Urban Areas is intended for urban households that have a regular source of income but may not have traditional salary slips or formal income documents. Applicants must meet the income, banking and other conditions prescribed under the scheme and the selected lending institution. The main eligibility requirements are as follows:

• The applicant must have an annual income of up to ₹9 lakh. Income from up to four eligible household members can be combined to calculate the total annual household income.
• The applicant should not own a house or may own only one house, subject to the scheme's conditions and the selected bank's assessment.
• The applicant must have a regular source of income. People with limited or no traditional income documents may also be considered if they can show digital records of their banking transactions and other economic activities.
• The applicant should have a satisfactorily maintained bank account or UPI transaction history for at least 24 months, as required under the published lending terms.
• Small traders, shopkeepers, self-employed individuals, skilled and semi-skilled workers, artisans and other workers in the unorganised sector can apply if they meet the prescribed conditions.
• Members of Self-Help Groups (SHGs) and eligible beneficiaries of PM SVANidhi, PM Vishwakarma, Pradhan Mantri Mudra Yojana and Stand-Up India can also be considered.
• Eligible beneficiary groups under Pradhan Mantri Awas Yojana–Urban 2.0 (PMAY-U 2.0) can also apply through this facility.
• The applicant's creditworthiness and repayment capacity must meet the lending institution's requirements.
• For the published Indian Bank product, the minimum applicant age is 21 years and the maximum entry age is 60 years. Age conditions may differ between participating banks.
• For the Indian Bank product, a maximum of four co-borrowers, including the applicant, spouse and earning children, can be considered. Their eligible income may be combined for loan assessment.

The annual income categories are generally classified as EWS (up to ₹3 lakh), LIG (above ₹3 lakh and up to ₹6 lakh) and MIG (above ₹6 lakh and up to ₹9 lakh). However, the final loan eligibility, age limits, income assessment and other conditions depend on the participating bank's published terms.

Note: The conditions relating to a 24-month banking or UPI history, age limits and maximum number of co-borrowers are based on the published Indian Bank product terms. Applicants should check the specific requirements of their selected bank before applying.

Required Documents

Before applying for a home loan, it is helpful to keep your basic documents ready. These documents help the bank check your identity, income, banking details and property information. The exact documents may differ depending on whether you are salaried, self-employed or running a small business. Generally, you may be asked to provide the following:

• A completed home loan application form along with recent photographs of the applicant and co-applicants, if any.
• Identity and address proof, such as an Aadhaar card, PAN card, voter ID card, passport or driving licence, as accepted by the bank.
• Age proof, such as an Aadhaar card, birth certificate, passport or driving licence.
• Bank statements or passbook entries for the previous 12 to 24 months to show your income, savings and regular transactions.
• If you are a salaried employee, you may need to provide your salary account statement or other records showing regular salary deposits. Some banks may also ask for salary slips or Form 16.
• If you run a business or work for yourself, you can provide bank statements showing business transactions, UPI or POS transaction records, GST returns, business registration papers or other available proof of your work.
• Property papers, such as the sale agreement, ownership documents, title deed and approved building plan, as required by the bank.
• If you are taking a loan to construct a house, you may need to submit land ownership papers, an approved construction plan and an estimate of the construction cost.
• If the loan is for extending or repairing a house, the bank may ask for an estimate of the proposed work prepared by an approved engineer or architect.
• If you are applying jointly with a co-applicant or co-borrower, keep their identity, address and income-related documents ready as well.
• Any other document or declaration requested by the bank during the application and verification process.

Do not worry if you do not have regular salary slips, Form 16 or income tax returns. Some banks also consider digital banking transactions and other records of your economic activity to understand your income. For example, Bank of Baroda's published product terms state that salary slips, Form 16 and certain income-tax and financial statements are not required. However, the documents accepted may differ from one bank to another, so check the list provided by your selected lender before submitting your application.

Steps to Apply

• First, open the JanSamarth Portal. Find the Home Loan section and select the scheme titled "Home Loan Scheme for EWS, LIG and MIG: Urban Areas". You can also go directly to the home-loan scheme page.
• Read the scheme details and click on the option to check your eligibility. Enter the information asked for, such as your family income, occupation and banking details. The portal will use these details to check whether you may be eligible for the loan.
• After checking your eligibility, follow the instructions on the screen to register or log in. Enter your mobile number and complete the OTP verification, if required.
• Once you are logged in, fill out the application form with your name, address, occupation, income and home-loan requirements. If you are applying jointly with other family members, enter their details wherever required.
• Upload the documents requested in the application, such as your identity proof, address proof, bank statements and property papers, if applicable. Check all the details carefully before moving to the next step.
• After providing the required information, check the banks or financial institutions available for your application. Compare their loan offers, interest rates and repayment conditions before choosing a lender.
• Submit your application and save the application reference number for future use. The selected bank will check your documents, income and property details before deciding whether to approve your loan.
• Keep checking your application status through the JanSamarth Portal. If the bank asks for any additional documents or information, provide them as soon as possible to avoid delays.

Remember, submitting an application or passing the initial eligibility check does not guarantee loan approval. The selected bank or housing finance company will make the final decision after verifying your details. If you face any difficulty while using the portal, you can submit your complaint through the JanSamarth Grievance Portal.

Credit Guarantee Coverage Under CRGFTLIH

Getting a home loan can be difficult for families with limited income, especially when they do not have a regular salary or formal income documents. To make it easier for such families to access housing finance, the Government has a credit guarantee facility called the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH). It is sponsored by the Ministry of Housing and Urban Affairs (MoHUA) and managed through the National Credit Guarantee Trustee Company Limited (NCGTC).

Under this facility, the Trust provides a guarantee to eligible banks and other lending institutions. If a borrower fails to repay the loan, the lender may receive guarantee support covering up to 70% of the outstanding amount in default, subject to the scheme rules. This reduces some of the lender's risk and encourages it to provide home loans to eligible low-income families.

The main conditions for getting this credit guarantee support are:

• The applicant must belong to the Economically Weaker Section (EWS), with an annual household income of up to ₹3 lakh, or the Low Income Group (LIG), with an annual household income of up to ₹6 lakh.
• The loan must be taken to purchase or construct the applicant's first house.
• The eligible home loan amount must not be more than ₹20 lakh.
• The carpet area of the house must not exceed 60 square metres.
• The Trust can provide guarantee coverage of up to 70% of the outstanding amount in default, as per the prescribed conditions.
• The guarantee remains available for up to 25 years or the actual loan tenure, whichever is earlier.
• Housing loans must be provided by eligible lending institutions, such as scheduled commercial banks, housing finance companies, regional rural banks, cooperative banks and small finance banks.

Applicants should understand that this guarantee is not a cash benefit or a 70% subsidy on their home loan. It is provided to the eligible lending institution to protect it against part of its loss if the borrower defaults. The borrower must still repay the full loan amount, along with applicable interest and charges, according to the loan agreement.

Difference Between HL-U and PMAY-U 2.0 Interest Subsidy Scheme

The Home Loan Scheme for EWS, LIG and MIG: Urban Areas (HL-U) and the Interest Subsidy Scheme (ISS) under Pradhan Mantri Awas Yojana–Urban 2.0 (PMAY-U 2.0) are related to housing finance, but they are not the same scheme. HL-U is listed on the JanSamarth Portal to help eligible urban households access home loans through participating lenders. In comparison, PMAY-U 2.0 ISS provides an interest subsidy to eligible home-loan borrowers who meet its specific conditions.

The main differences between these two facilities are explained below:

Relevant Links

• Department of Financial Services (DFS), Ministry of Finance
• Ministry of Housing and Urban Affairs (MoHUA)
• JanSamarth Portal – National Portal for Credit-Linked Government Schemes
• Home Loan Scheme for EWS, LIG and MIG: Urban Areas – Scheme Page
• JanSamarth Portal – Grievance Redressal

Contact Information

For queries related to the online application, portal access or application status, applicants can use the JanSamarth grievance facility. For loan sanction, interest rates, repayment and document-related questions, they should contact the bank or housing finance company selected for their application.

JanSamarth Portal – Department of Financial Services, Ministry of Finance

• Official website: https://www.jansamarth.in/
• Grievance portal: https://www.jansamarth.in/grievances
• Phone: 07969076111(for Borrower)
• Email: [email protected]
• Address: No separate postal address for HL-U applicant queries could be verified.

Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH)

• Managing agency: National Credit Guarantee Trustee Company Limited (NCGTC)
• Sponsored by: Ministry of Housing and Urban Affairs (MoHUA).
• Official scheme information: CRGFTLIH Scheme Details
• Phone, email and postal address: Please use the contact information published on the NCGTC website; a separate CRGFTLIH beneficiary helpline could not be verified.