A recent press report said that the government is working with the World Bank and the International Finance Corporation (IFC) to develop an appraisal mechanism for borrowers in the informal sector for disbursements under the mortgage risk guarantee fund for housing loans.
A World Bank spokesperson said that they have just started to work on the project and that it is preliminary to share any details on this.
Reports said that the fund will have a corpus of Rs.1, 000 crore contributed by both the central government and NHB. The disbursals under the fund will start after the processing of the appraisal system. The fund is expected to offer loans up to Rs. 5 lakh.
Mr. Verma, CDM, NHB said that it would be a good business opportunity for the lenders if they understand the market and measure the risk. He also said that extra cost is involved in appraising the home loan segment.
He said that lenders will have to review the earlier history of the borrower, his job patterns and the income flow if they do not have salary slips. He added saying that NHB expects to connect the lenders and the informal sector borrowers and make use of international models to ensure credit flow to this segment.