Do you have a bad credit score which is stopping you to apply for a home loan? Is yes, then soon this problem can be solved? To revive the housing industry and to attract more home buyers, the central government is planning to offer a guarantee to those individuals who wish to purchase a home but because of their low credit score, they fail to avail a home loan.
Giving more information on this, a senior Finance Ministry official said, “The central government is at present, considering a fund wherein they will provide a guarantee to individuals with a low credit score in borrowing finds from the banks as loan. The move has been planned as a part of the package being prepared for the ailing housing sector.”
He further informed that this fund would particularly help those borrowers who are not eligible for a loan from a bank. A guarantee from the government side could also help in availing loan at lower interest rates.
“By paying a small fee, a borrower will be able to get the loan from the proposed fund.” the official added.
If formalized, those with non-steady income or bad credit history will also be able to avail loan to purchase their dream home. Also, banks will be able to approve the loan as the borrower will be backed by the government’s guarantee.
Just a few days back, Finance Minister Nirmala Sitharaman said that the government is keen on reviving the real estate sector and hence is working on a package fund. The market which is suffering from a liquidity crunch, unsold inventories, and low sales is waiting for the formation of such funds as the package that could help in the revival of the market.