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

Summary of the Scheme
Name of Scheme	Home Loan Scheme for EWS, LIG and MIG: Urban Areas (HL-U)
Benefits	Credit guarantee of up to 70% of the amount in default on eligible loans up to ₹20 lakh for EWS and LIG borrowers.
Beneficiary	Eligible urban EWS and LIG households seeking a home loan.
Nodal Agency	National Credit Guarantee Trustee Company Limited (NCGTC)
Subscription	Subscribe here to get Update Regarding Scheme
Mode of Apply	Online through the JanSamarth Portal

Home Loan Scheme for EWS, LIG and MIG (Urban): Easier Home Loans Through the JanSamarth Portal

Many urban families, especially those in informal work, struggle to get a home loan because they lack salary slips. The Home Loan Scheme for EWS, LIG and MIG: Urban Areas (HL-U) on the JanSamarth Portal helps eligible households with income up to ₹9 lakh find participating lenders. For EWS and LIG borrowers, loans can carry a government credit guarantee of up to 70% of the amount in default.

This is not a subsidy. The guarantee goes to the lender, not to you. You still repay the full loan with interest and charges. Applying also doesn’t guarantee approval, because the bank decides.

What is the scheme?

JanSamarth is a national digital portal under the Department of Financial Services (DFS), Ministry of Finance, launched on 6 June 2022. It brings credit-linked Central Government schemes onto one platform. HL-U is listed there to connect urban households with participating banks and financial institutions.

The guarantee comes from the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH), sponsored by the Ministry of Housing and Urban Affairs and managed by the National Credit Guarantee Trustee Company Limited (NCGTC).

Scheme at a glance

What you can use the loan for

• Buy or construct a new house or flat
• Buy an existing house or flat
• Extend, repair or renovate your existing house, subject to the bank’s terms

Other points:

• Income of up to four household members can be combined, subject to the bank’s rules.
• People with limited or no traditional income papers may be considered if they have a regular income and digital records of banking and other economic activity.
• Small traders, shopkeepers, self-employed people, skilled and semi-skilled workers, artisans, SHG members, and beneficiaries of PM SVANidhi, PM Vishwakarma, Mudra and Stand-Up India can benefit.

Loan amount, interest and tenure

These are decided by the lender. There is no single fixed rate or tenure.

• Loan amount: depends on your repayment capacity, property value and the bank’s policy. The ₹20 lakh figure is the limit for guarantee coverage, not a universal maximum loan.
• Interest rate: set by the lender. For loans under CRGFTLIH, the limits are up to 4 percentage points above the RBI repo rate for scheduled commercial banks and up to 7 points above for other eligible housing finance companies, NBFCs and member lending institutions.
• Tenure: set by the lender based on your age, income and repayment capacity. Guarantee coverage lasts up to 25 years or the actual loan tenure, whichever is earlier. That doesn’t mean every borrower gets 25 years.
• Other costs: processing charges, margin and insurance vary by lender.

Compare offers and check the sanction letter before accepting.

How the credit guarantee works

To qualify for the guarantee:

1. You must be EWS (household income up to ₹3 lakh) or LIG (up to ₹6 lakh).
2. The loan must be for your first house, to buy or construct.
3. The loan must not exceed ₹20 lakh.
4. The carpet area must not exceed 60 sq. m.
5. The lender must be eligible: scheduled commercial banks, housing finance companies, regional rural banks, cooperative banks or small finance banks.

If a borrower defaults, the lender may recover up to 70% of the outstanding amount in default from the Trust. It only protects the lender.

Who is eligible?

• Annual income up to ₹9 lakh, with up to four household members’ income combined
• No house owned, or only one, subject to conditions and the bank’s assessment
• A regular source of income
• A satisfactorily maintained bank account or UPI history of at least 24 months, as required under the published lending terms
• Satisfactory creditworthiness and repayment capacity
• Income groups: EWS up to ₹3 lakh, LIG above ₹3 lakh to ₹6 lakh, MIG above ₹6 lakh to ₹9 lakh
• Eligible beneficiaries under PMAY-U 2.0 can also apply

Bank-specific terms: the 24-month history, age limits and co-borrower rules come from the published Indian Bank product. For that product, age is 21 to 60 and up to four co-borrowers (applicant, spouse and earning children) can be considered. Other banks may differ, so check your chosen lender.

Documents to keep ready

• Completed home loan form and recent photographs of you and any co-applicants
• Identity and address proof: Aadhaar, PAN, voter ID, passport or driving licence
• Age proof
• Bank statements or passbook entries for the last 12 to 24 months
• Salaried: salary account statement, and possibly salary slips or Form 16
• Self-employed or business: bank statements showing business transactions, UPI or POS records, GST returns or business registration papers
• Property papers: sale agreement, ownership documents, title deed and approved building plan, as the bank requires
• Construction: land ownership papers, approved plan and cost estimate
• Extension or repair: an estimate from an approved engineer or architect
• Co-applicant documents, if applying jointly

No salary slips, Form 16 or income tax returns? Some banks consider digital transactions instead. For example, Bank of Baroda’s published terms say these documents aren’t required. Check your lender’s list.

How to apply

1. Open the JanSamarth portal, go to the Home Loan section and select Home Loan Scheme for EWS, LIG and MIG: Urban Areas.
2. Click to check your eligibility and enter your family income, occupation and banking details.
3. Register or log in with your mobile number and OTP.
4. Fill in the application with your name, address, occupation, income and loan needs, and add joint applicants if any.
5. Upload the documents requested.
6. Review the available banks, and compare their rates and conditions before choosing.
7. Submit and save the application reference number.
8. The bank verifies your documents, income and property and decides on the loan.
9. Track your status on the portal, and give any extra documents the bank asks for quickly.

For portal problems, use the JanSamarth Grievance Portal. For loan sanction, rates, repayment or document questions, contact your chosen bank.

HL-U vs PMAY-U 2.0 Interest Subsidy

They are separate benefits. HL-U is not PMAY-U 2.0.

Related schemes

• PMAY-Urban 2.0
• Housing Loan Interest Subsidy Scheme (PMAY-U 2.0)

Need help?

• Borrower helpline: 07969076111
• Email: Customer.support@jansamarth.in
• Grievances: jansamarth.in/grievances
• CRGFTLIH: use the contact details on the NCGTC website. No separate beneficiary helpline could be verified.

Frequently asked questions

Is there an interest subsidy under HL-U?
No. The credit guarantee protects the lender. The 4% subsidy belongs to PMAY-U 2.0.

Can self-employed people apply?
Yes, if they meet the conditions.

Can I apply without salary slips or Form 16?
Possibly. Some banks consider digital banking records. Check your lender.

What is the maximum loan?
The lender decides. ₹20 lakh is the limit for guarantee coverage only.

Does applying guarantee approval?
No. The bank decides.

Is HL-U the same as PMAY-U 2.0?
No.