Housing Finance in India: A Comparative Study of Public and Private Sector Banks
Housing or shelter is the basic need of human being. This is accepted by the civilized society. Housing is an enigma to the developing countries; it is simultaneously the hardest problem to solvethe social housing schemes. Though shelter was enshrined as a fundamental right in the constitution, housing did not get the attention it reserved. In the light of bank reforms and government encouraged banking sectors to identify housing finance sector and its importance in lending. After 1990s all public sector banks were struggling with NPA problem. The housing shortage is increasing day by day as a proportion to the massive incr ease in population. Today, there are more than 350 housing finance companies r egistered with the registrar of companies of these 29 have been approved by NHB for financial assistance. Housing finance sector is fastest growing segment of the retail financing sector with a slew of tax breaks and sharp cut in of cost of owing housing, buying a house is easier. The agencies of public sector housing finance companies, Private sector housing companies and banks are competitors in housing finance market. Every citizen of the country dreams of having his own house. It is the bounden duty of the government to provide house to the houseless. Considering the paramount importance of housing, government no doubt considered.
An Assessment of the Indian Housing Finance System: Crucial Perspective
House is a centre and domestic device for mankind's moral and substance development ever since the dawn of civilisation. Housing is one of the most important that we human beings need. Adequate housing is essential for human survival with dignity. There are many things that we would find difficult, if not impossible to do without good-quality housing. Housing shortage is a universal phenomenon. It is more acute in developing countries. The housing dimension in India has been changing in recent years. India has initiated so many housing reform that has taken many forms and manifestations characterized by the reduction in social allocation, cutbacks in public funding and promotion of a real estate culture in close partnership between the state and private actors. Mortgage financing markets can play an important role in stimulating affordable housing markets and improving housing quality in many countries. Unfortunately, they are often less developed in India. This lack of development often translates into lower homeownership rates or lower housing quality. Most stem from the central dilemma that the resources are always too limited and housing development heavily depend on the financial institutions such as banks, credit corporations and development banks for the supply of finance to meet their daily financial needs. Against this backdrop this paper will assess basic nuances of Indian financing system. This paper will also provide key issues, future outlook and institutional performance.
Housing Finance In India A Case Study Of Lic Housing Finance Limited
Housing, as one of the three basic needs of life, always remains on the top priority of any person, economy, government and society at large. In India, majority of the population lives in slums and shabby shelters in rural areas. From the last decade, the Government of India has been continuously trying to strengthen the housing sector by introducing various housing loan schemes for rural and urban population. The first attempt in this regard was the National Housing Policy (NHP), which was introduced in 1988. The National Housing Bank (NHB) was set up in 1988 as an apex institution for housing finance and a wholly-owned subsidiary of Reserve Bank of India (RBI). The main objective of the bank is to promote and establish the housing financial institutions in the country as well as to provide refinance facilities to housing finance corporations and scheduled commercial banks. Moreover, for the salaried section, the tax rebates on housing loans have been introduced. The paper is based on the case study of LIC Housing Finance Ltd., which analyzes region-wise disbursements of individual house loans, their portfolio amounts and the defaults for the last ten years, i.e., from 1995-96 to 2004-05 by working out relevant ratios in terms of percentages and the compound annual growth rates. A relevant chart has also been prepared to highlight the results.