The government is working on a zero-collateral housing loan scheme for low- and middle-income groups, offering up to ₹20 lakh with minimal documentation or third-party guarantees, according to sources.

Amendments to the Credit Risk Guarantee Fund Scheme for Low-Income Housing (CRGFTLIH) are being considered to facilitate the scheme, which may feature a 30-year loan tenure.

Currently, loans up to ₹8 lakh are covered under the scheme, but the new initiative aims to extend credit to homebuyers with minimal or no documented income, said a government official.

Discussions are underway among the ministries of finance and housing, the National Housing Bank, and commercial banks to finalize parameters like eligible income, EMI, and income ratios.