If you’re not a salaried employee but frequently engage in digital transactions, you might soon have an easier time securing a home loan.
The government is considering a new scheme that uses your digital footprint to assess loan eligibility.
Recently, a similar model was introduced for people connected to MSMEs (Micro, Small, and Medium Enterprises),
as shared by the Finance Minister in the budget.
New Scheme for Home Loans Based on Digital Footprint
According to the Indian Express, the Finance Ministry is working on a plan similar to the MSME assessment model.
This new scheme aims to provide home loans to individuals whose financial status is difficult to evaluate through traditional methods.
Budget Announcements
In the budget for the financial year 2024-25, Finance Minister Nirmala Sitharaman instructed government banks to develop a system for easier assessment of MSMEs, focusing on their digital footprint rather than their balance sheets.
She emphasized that not all MSMEs can present a balance sheet and suggested that banks should treat them similarly to large corporations.
Digital Footprint’s Role in Home Loans
Financial Services Secretary Vivek Joshi mentioned that a similar approach is being considered for the housing sector.
Currently, home loans are typically available only to employed individuals or taxpayers.
The new model aims to extend home loans to those outside these categories by using their digital footprint to evaluate their financial behavior.
Joshi noted that this model could be developed within the next three months, allowing banks to monitor spending patterns during the loan assessment process.
