Housing for All Empowering India’s Informal Workforce

June 2025

For millions of Indians from the Economically Weaker Sections (EWS) and Low-Income Groups (LIG), especially those earning through informal means, the dream of owning a home remains elusive. While home loans from banks have enabled many to realize this dream, the informal segment often faces unique barriers that keep them on the sidelines.

What is the Informal workforce?

The informal workforce refers to individuals who earn a livelihood outside the formal, salaried workforce. They typically do not have regular payslips, provident fund contributions, or income tax returns. Examples include daily wage laborers, auto- rickshaw drivers, domestic helpers, small shopkeepers, vegetable vendors, carpenters, electricians, and tailors. They form the backbone of India’s economy, yet remain financially excluded.

Key Challenges Faced

• Low and Irregular Income: Many earn modest incomes that vary from day to day or month to month, making it difficult for banks to assess their repayment ability.
• Lack of Income Documents: Most informal workers do not have salary slips or formal income proofs, which are mandatory for most traditional lenders.
• Low or No CIBIL Score: Without prior exposure to formal credit, many from this segment lack a credit history or have low CIBIL scores, leading to automatic rejection by banks.
• Limited Awareness of Government Schemes: Many are unaware of schemes like PMAY (Pradhan Mantri Awas Yojana), which can significantly reduce the cost of home ownership.
• Perceived Low Profile: Borrowers from humble professions or addresses are often seen as risky or unviable by traditional institutions.
• Language and Communication Barriers: Complex loan processes, English forms, and unfamiliar banking terms often create confusion and hesitation.

Overcoming these challenges: Grihum’s Different Approach

Grihum Housing Finance was created to serve this very segment. Recognizing that traditional models don’t work for informal earners, Grihum offers a unique, inclusive approach:

• Field - Based Income Assessment: Grihum’s trained teams visit customers to understand their income patterns, even without formal documentation.
• Alternative Credit Evaluation: By evaluating cash flows, utility payments, and references, Grihum builds a reliable credit profile beyond just CIBIL scores.
• PMAY Assistance: Grihum helps customers apply for and avail PMAY subsidies, reducing their financial burden.
• Local Language Support: Every interaction happens in the customer’s language, ensuring trust and transparency.
• Simple, Doorstep Service: With minimal paperwork and personalized support, Grihum makes home loans accessible and respectful. By breaking systemic barriers, Grihum empowers the informal segment to own a home with dignity— turning dreams into lasting addresses.

~ Dnyanesh Nandurkar
Head of Marketing and Institutional Sales, Grihum Housing Finance

Source: Thane Realty News

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