Bank of Baroda Credit Risk Guarantee Fund Scheme for Affordable Housing
Home ownership must become a possibility for all, across all income categories. BOB Credit Risk Guarantee Fund Scheme for Low-Income Housing ensures the economically weaker sections (EWS) and low-income groups (LIG) achieve their ultimate goal of house ownership. Supported by the Ministry of Housing and Urban Poverty Alleviation and operated by the National Housing Bank (NHB), the scheme offers collateral-free home loans up to ₹8 lakh on easy eligibility parameters. Whether you aspire to construct a new dwelling, buy a small house, or renovate your existing dwelling, the BOB Credit Risk Guarantee Fund Scheme helps you without any guarantor or security requirement.
Bank of Baroda Credit Risk Guarantee Fund Scheme for Affordable Housing
Home purchase is a goal that must be accessible to all—irrespective of income. The BOB Credit Risk Guarantee Fund Scheme for Low-Income Housing makes that feasible. Rolled out under the aegis of the Ministry of Housing and Urban Poverty Alleviation, the scheme benefits low-income groups by facilitating home loans without collateral or third-party guarantees.
No matter whether you want to construct a new home, upgrade your present home, or buy a small residence in a city, this scheme is there to make you eligible through the BOB Credit Risk Guarantee Fund Scheme for Low-Income Housing to receive the funds you deserve.
What is the Credit Risk Guarantee Fund Scheme?
The Credit Risk Guarantee Fund Scheme for Affordable Housing (CRGFS) was launched on 31st October 2012. Operated by the National Housing Bank (NHB), the scheme offers lending banks such as the BOB Credit Risk Guarantee Fund Scheme for Low-Income Housing loans extended to EWS and LIG borrowers. The loans are covered up to ₹5 lakh—or ₹8 lakh in certain instances—without collateral or third-party guarantee.
Key Benefits of BOB Credit Risk Guarantee Scheme
| Benefit | Details |
| No Collateral or Guarantor Required | Loans are offered without demanding any security or third-party guarantee. |
| Government-Backed Trust | Backed by the Credit Risk Guarantee Fund Trust of the Ministry of Housing. |
| Affordable Housing for All | Designed for EWS and LIG families in urban areas. |
| Covers Home Construction and Purchase | Applicable for construction, acquisition, and home improvement. |
| Extended Guarantee Period | Guarantee cover is available for up to 25 years or until loan closure. |
Features of the BOB Credit Risk Guarantee Fund Scheme for Low-Income Housing
- Loans up to ₹8 lakh are covered under the scheme.
- Applicable only in urban areas.
- The housing unit must not exceed 430 sq. ft. (40 sq. m.) in carpet area.
- Loans must be free from collateral and third-party guarantees.
- Activities covered:
- Construction of a new house
- Purchase of a new or resale property
- Home improvement (excluding minor renovations/repairs)
- Construction of a new house
- Housing groups or societies with 20 or more eligible members can also apply.
Who Can Apply?
Eligible Borrowers for BOB Credit Risk Guarantee Fund Scheme for Low-Income Housing:
- New individual borrowers from EWS or LIG groups.
- The housing unit must not exceed 430 sq. ft. carpet area.
- No existing home loans are covered under similar guarantee schemes.
Income Criteria:
| Category | Annual Household Income |
| Economically Weaker Section (EWS) | Up to ₹1,00,000 |
| Lower Income Group (LIG) | ₹1,00,001 to ₹2,00,000 |
Note: These limits are subject to revision by the Ministry of Housing and Urban Affairs.
Processing Charges
| Lead Source | Charges |
| Takeover leads (Non-DSA) | NIL, subject to a refundable login fee of ₹1,500 on first disbursement |
| Home loans for Govt. employees (Non-DSA) | NIL, subject to a refundable login fee of ₹1,500 on first disbursement |
| Approved projects (Digital/Non-digital) | ₹3,500 + GST (Out-of-pocket expenses only) |
| Digital channel (Others) | ₹5,000 – ₹8,500 + GST (Out-of-pocket, conditions apply) |
| Non-digital channel (Others) | ₹10,000 + GST (Per property, out-of-pocket expenses) |
Important Terms & Conditions (MITC)
Loans NOT Covered Under This Scheme:
- Loans already covered under other government or insurance-backed schemes.
- Loans are given with any form of collateral or third-party guarantee.
- Loans are taken by borrowers who have already availed benefits under this or a similar scheme and defaulted on repayment.
- Loans issued with interest rates exceeding 2% above the base rate or outside eligible loan categories.
Validity of Guarantee Cover:
- Starts from the date of disbursal.
- Continues through the loan term or for a maximum of 25 years, whichever comes first.
Final Word
The BOB Credit Risk Guarantee Fund Scheme for Low-Income Housing is a thoughtful step toward making housing accessible to India’s lower-income population. With no collateral, minimal charges, and government-backed security, it ensures that financial hurdles do not stand in the way of owning a safe and secure home.
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