New Delhi: In order to woo the voters as Assembly elections in five states draws near, the Central government has decided to waive the clause of depositing guarantee for home loan sought by the poor.

The Ministry of Housing and Urban Poverty Alleviation will now take the guarantee for people of a particular group seeking home loan.

Broadly, people seeking home loan for construction of house over 40 and 25 square metre of land would be considered for the waiver.

Providing monetary support to the lower income group, the Ministry has chalked out ‘Easy Home Loan Project’. Under the project, the Centre is preparing Rs 5,000 crore Credit Guarantee Fund which will be used for the Rajeev Gandhi Housing Scheme and to give home loan guarantee of up to Rs 5 lakhs to people in the low income group.

According to the officials, the scheme has been introduced considering the problems faced by people in taking home loan.

Generally, banks demand guarantee from the customers who are willing to take home loan. Due to the financial instability, the applications of people from the lower income group are often rejected.

With the implementation of the scheme, government will now take the undertaking and give lower middle class section an opportunity to avail home loan. In such a situation, the Centre will give loan amount to the banks on behalf of the home loan seeker.

Sources in the Ministry informed that the guidelines related to the project will be released in December.