Government is finalising the blueprint for a scheme to enable the urban poor to own a house. The Housing and Urban Poverty Alleviation Ministry has proposed to stand in as guarantor for home loans upto five lakh rupees.

Official sources said under the proposed scheme banks will be reimbursed upto 90 percent in case people default on these loans. The scheme is targetting those earning less than ten thousand rupees in a month in cities. It envisages setting up of a credit guarantee fund which will reimburse money to banks in case of default.