Budget 2026: Experts Pitch Housing Credit Passport for Faster Loans

As policymakers prepare the roadmap for the upcoming Union Budget, Budget 2026 expectations from the real estate and housing finance sectors are increasingly focused on structural reforms rather than short-term incentives. Among the key proposals gaining traction is the introduction of a housing credit passport, a digital, consent-based financial profile aimed at significantly reducing home loan approval timelines for buyers.

Industry experts believe such a system could improve transparency, cut repetitive paperwork, and strengthen ease of access to formal housing credit, particularly for first-time and mid-income homebuyers.

What Is a Housing Credit Passport?

A housing credit passport is envisioned as a standardised, consent-driven digital snapshot of a borrower’s financial credentials. It would consolidate key data points such as income details, credit history, existing liabilities, and repayment behaviour into a single verified profile that lenders can access during the home loan application process.

According to industry leaders, this passport would not replace lender discretion but would act as a trusted starting point, enabling faster and more predictable underwriting decisions.

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Why Budget 2026 Expectations Are Focused on This Reform

Housing finance plays a critical role in driving residential demand, yet loan processing delays continue to be a major friction point for buyers. As part of broader Budget 2026 expectations, experts argue that digitisation-led reforms like a housing credit passport align well with the government’s push for efficiency, transparency, and financial inclusion.

Rather than introducing new subsidies alone, stakeholders are calling for systemic improvements that can streamline transactions across the housing value chain.

Can a Housing Credit Passport Speed Up Home Loan Approvals?

Experts say yes, and the reasoning is straightforward. Today, 80–85% of data points used in home loan underwriting are already digital or semi-digital. Despite this, borrowers often face processing timelines of 15 to 25 days due to repeated verification of the same information across departments and institutions.

A housing credit passport could reduce duplication, improve data consistency, and allow lenders to focus on credit assessment rather than document collection. This reform aligns closely with the evolving expectations outlined in Budget 2026 for improving the ease of doing business in housing finance.

How Home Loan Underwriting Works Today

Home loan underwriting involves multiple layers of checks. Banks and housing finance companies typically assess credit reports from bureaus, verify income through salary slips, bank statements, tax filings, or GST data, and validate employment details.

In certain cases, physical verification of addresses or properties is also conducted, especially for higher-risk profiles. While much of this process is already digitised, the lack of a unified borrower profile often leads to delays and inconsistencies.

Is a Housing Credit Passport Feasible in India?

From a technical standpoint, experts believe implementation is increasingly realistic. Financial institutions already access structured data related to credit behaviour, banking transactions, and income patterns.

However, challenges remain. A significant share of borrowers are self-employed or operate in semi-formal sectors, where income does not always fit standard templates. Experts caution that within Budget 2026 expectations, the housing credit passport should remain flexible rather than becoming a rigid, score-driven filter.

Potential Risks and How They Can Be Managed

One concern is over-standardisation. If lenders rely too heavily on automated profiles, some borrowers could face exclusion or stricter terms despite being creditworthy. To avoid this, the passport must be treated as a supporting tool, not a final decision-maker.

Strong consent frameworks, regular data updates, and room for contextual evaluation will be essential for the system to function effectively.

What This Means for Homebuyers: A Practical Example

Consider a salaried professional planning to purchase a mid-range apartment with the help of a home loan. With a housing credit passport, the buyer could share a pre-verified financial snapshot at the very start of the application.

This could reduce manual document checks by 30–40% and shorten approval timelines by up to 50%, particularly for formally employed households. Under such Budget 2026 expectations, buyers would gain faster clarity on eligibility and smoother coordination with developers and sellers.

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Will It Improve Affordability or Just Speed?

A housing credit passport may not directly lower EMIs or property prices. Its real value lies in predictability and transparency. Faster approvals reduce transaction uncertainty, minimise cost overruns, and allow families to plan purchases with greater confidence.

When combined with tax benefits or interest subsidies, this reform could significantly enhance the overall home-buying experience a key objective within Budget 2026 expectations for the housing sector.

Conclusion

As housing finance becomes more data-driven, the case for a housing credit passport is gaining strength. By addressing procedural bottlenecks rather than demand alone, this proposal reflects a mature shift in Budget 2026 expectations from short-term relief to long-term system efficiency.

If implemented with flexibility and safeguards, a housing credit passport could become a foundational reform, supporting faster home loan processing, broader credit access, and a more resilient housing ecosystem in India.