2.5 lakh households are struggling to repay their debts, leaving them with a significant amount of debt to cover their monthly bills.
The average debt of such households is Rs 20,000 and they are mostly aged between 35 and 45 years old.
The average interest rate on loans is 4.25 per cent.
The government has already initiated two initiatives, the Home Loan Assistance Programme and the Home Purchase Guarantee, to help the poor with their loan repayments.
“I had no choice but to invest in the Home Loans Programme.
I am glad to be able to get loans from this government.
They are good,” said a 25-year-old who did not wish to be identified as he did not want to be taken for granted.
He said that he has been saving for the first three months and has not received any of the loans he was hoping for.
Another 30-year old, who did have a home loan, said that she had no other option but to buy her house after she failed to pay the principal and interest on it in a few months.
“The government has given me some loans to finance my house.
I have not been able to repay them but it is my decision.
I cannot afford to take loans from the government, so I am going to buy my house and move out.
I want to get my house worth over Rs 100 crore,” she said.
Many of the poor are struggling because they have not found any employment.
They do not have a salary or a job, or have any savings to help them.
One of the largest groups of unemployed in the country is the underprivileged sections.
Their jobless rate is at nearly 30 per cent, according to the National Sample Survey Organisation (NSSO).
The number of poor people in the city is around 1.4 crore.
Most of the government-sponsored loans are for houses or land, and these are the ones that are most needed for the poor.
It is estimated that the loan repayment scheme could generate around Rs 70,000 crore in the next two years, a figure that would make it the biggest ever program initiated by the government in terms of amount of loan repayable.