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    housingfinance-170923071709

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    housingfinance-170923071709

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    of 16

    Topic: Housing finance

    • Meaning of Housing finance


    • Type of house loan
    • Importance of house finance
    • HUDCO & It’s Objectives
    • NHB & It’s Objectives
    • LIC Housing finance & It’s Objectives
    • HDFC & It’s Objectives
    • GRUH & It’s Objectives.
    • CIDCO & It’s Objectives
    MEANING OF HOUSING FINANCE
    The home is basic unit of society, but the capital required per dwelling is so large
    that few individuals can raise it from their own savings. So there is a great need and
    scope for the purpose of construction of house.
    The terms “Housing Finance” or “Home Loan” means finance for buying or
    modifying a property.

    The different housing loan products could be classified as:-


    (a) Home Loans
    (b) Home Extension Loans
    (c) Home Improvement Loans
    (d) Land Loans
    (e) NRI Loans
    (f) Home Equity Loans
    (g) Short Term bridging Loans
    (h) Converting high interest housing loan to low interest housing loan.
    Housing finance connotes finance (or loans) for meeting the various needs
    relating to housing, namely:
    a)Purchase of a flat or house
    b)Acquisition of a plot, and construction of a house
    c)Construction of a house
    d)Extension of a house
    e)Repairs, renovation and up gradation of a house/flat

    IMPORTANCE OF HOUSING FINANACE

    Create & meet a growing housing demand


    Reduce poverty
    Prevent slum
    proliferation
    Engine of equitable economic growth
    Take part in financial sector liberalization
    STRUCTURE

    RBI

    NATIONAL HOUSING BANK (NHB)

    Commercial Banks Housing Finance Companies Cooperative Institutions

    HUDCO HDFC Bank LIC housing finance GUHA CIDCO

    Apex Cooperative State Cooperative Urban Cooperative State


    Housing Federations Banks Banks Cooperative
    Agri. & Rural Bank
     Established on 9th July 1988 under The Act of. The National Housing Bank Act,1987
     to operate as a principal agency to promote housing finance institutions (HFIs), at both
    local and regional levels and to provide financial and other support to them.
     The setting up of NHB, a fully owned subsidiary of the Reserve Bank of India marked
    the beginning of the emergency of housing finance as a fund based service in country.
     Issues directions to housing finance institutions to ensure their growth on sound lines
     Loans and advances and any other form of financial assistance to scheduled banks and
    housing finance institutions
     Formulate schemes for the purpose of mobilization of resources and extension of credit
    for housing.
     To promote a sound housing finance system to cater to all segments of the population
     Make housing credit more affordable
     ‘Swarna Jayanti Rural Housing Finance Scheme’ seeks to provide improved access to
    housing loans to borrowers for construction/acquisition/ up-gradation of a house in rural
    areas of the country
    • To promote a network of dedicated housing finance
    • The functions of the NHB includes the promotion and development of housing
    finance institutions on sound and healthy lines, regulation and supervision of
    housing finance companies in the matter of acceptance of deposits and
    providing refinance facilities to retail lending institutions.
    • To augment resources for the sector and canalize them for housing.
    • To make housing credit more affordable.
    • To encourage augmentation of supply of build able land and also building
    materials
    • NHB also provides direct lending facility to public agencies such as State level
    Housing Boards and Area Development Authorities for 64 large scale housing
    projects, slum redevelopment projects and other special projects such as
    housing for earthquake and cyclone victims.
    • To encourage public agencies to emerge as facilitators and suppliers of
    serviced land, for housing.
     LIC Housing Finance Limited (LICHFL) as a subsidiary of LIC was
    incorporated on June 19th 1989, to accelerate the development of housing.
     The LICHFL started its operations with 8 centers and spread its activities to
    43 centers by 1991-92 as Area Offices.

    Objectives of LICHFL:
    ‘To each one a home of his own’ is the main objective of LICHFL. It renders
    liberal financial assistance to policy holders and others for
    purchase/construction of residential houses/flats.
    The following are the other objectives of LICHFL:
    (i) To provide loans to public sector/private sector employees to construct
    residential accommodation for their employees.
    (ii) To mobilize insurance linked long term savings from the public to deploy
    such funds in long-term finance in the housing sector.
    (iii) To facilitate approval of builders in advance and offer them construction
    finance to enhance customer servicing with a real estate market information.
    • Incorporated on 25th April 1970
    • Housing & Urban Development Corporation Ltd. (HUDCO) is a public
    sector company fully owned by Govt. of India for financing of housing
    and urban infrastructure activities in India.

    • The principal mandate of HUDCO was to ameliorate the housing


    conditions of all groups and with a thrust to meet the needs of the low-
    income group (LIG) and economically weaker sections (EWS)

    • Formed to assist agencies and authorities in upgrading the housing


    conditions in the country, aims to provide financing for housing
    developments

    • HUDCO Niwas Yojana for the lower income group (LIG), HUDCO
    Niwas - HUDCO home loans by HUDCO Bank
    • Motto: “Profitability with social justice”

    • The activity areas of HUDCO include:


    – Urban housing
    – Rural housing
    – Repairs and renewal
    – Working women ownership housing
    – Land acquisition
    – Staff Rental Housing
    – Cooperative Housing
    – Slum upgradation & Environmental Improvement Schemes
    – Night Shelter for Urban Shelterless.

    • Special Loan Scheme for rebuilding Tsunami affected villages


    • Promotes use of alternative building material and appropriate technologies –
    cost effective & environment friendly
    • New Initiatives – Community Toilets & Sanitation Prog.
     To provide long-term finance for construction of houses for residential
    purposes
     To finance or undertake, wholly or partly, the setting up of the new or
    satellite towns.
     To subscribe to the debentures and bonds issued
     To finance or undertake the setting up of industrial enterprise for building
    material.
     To administer the monies received, from time to time, from the
    Government of India
     To promote, establish, assist, collaborate and provide consultancy services
    for the projects
    The Housing Development Finance Corporation (HDFC) was formally
    promoted and incorporated on October 17, 1977 was promoted by ICICI, the
    International Finance Corporation.

    HDFC from its very first day of operations has built a principle centered
    organization. An organization built on the basis of fairness, kindness, efficiency and
    effectiveness. It had gradually built trust among the people by strengthening
    communications and participative management style.

    Its own name was constituted from three words – the interlocking of three areas
    housing, finance and development.
    OBJECTIVES OF HDFC:

    The Primary objective of HDFC is to enhance residential housing stock and to


    promote house ownership by providing individual household/families with long
    term
    housing loans at commercially viable rate.

    More specifically, the objectives of HDFC are:


    • To finance mainly low and middle income group of people to purchase/construct
    a single family dwelling unit primarily for self occupation.
    • Granting loans to the co-operative sector for housing their employees.
    •The major objective of HDFC is to increase the flow of resources for housing
    through the integration of Housing Finance Institutions with domestic capital
    market.
    •It was co-promoted and lent support to number of recognized Housing Finance
    Institutions operating in the Country.
    GRUH(THE GUJARAT HOUSING FINANCE CORPORATION LTD.)

    The gujarat Housing Development Finance Corporation (HDFC) was formally


    promoted and incorporated on july, 1986 was promoted by housing development
    finance corporation ltd.and aga khan fund for economic development(AKFED)
    and also recognize by NHB
    It provide housing finance to the individual for constructing or acquiring or
    upgrading dwelling units in town and villages for gujarat
    It also provide finance assistance to corporate bodies for construction of staff
    quarters and employee owned houses.
    It has evolved its own mortgagee under writing standards which are compatible
    with the nature of rural economy

    At present GRUH has retail network of 33 branches and planning to extend it


    upto 49.
    CIDCO (CITY AND INDUSTRIAL DEVELOPMENT CORPORATION)

     Due to phenomenal rate of urban growth of city of Mumbai, it has decided to


    have a twin city across the Harbor to accommodate a population of about 2
    million.
    CIDCO is a limited company wholly controlled by the government of
    maharashtra.
    The functions of CIDCO are planning, impletation, administration and
    maintainance.
    The project is based on formation of a series of nodal settlements strung along a
    mass rapid transit [MRT] line.
    In the ultimate stage, Navi Mumbai is expected to have about 14 such nodes.
    CIDCO (CITY AND INDUSTRIAL DEVELOPMENT CORPORATION)

    OBJECTIVES

     To build as many houses and community infra-structures to meet the day to day
    need for the population.
     To Develop land and provide the required physical infrastructure, i.e. roads,
    drainage, water supply, sewerage, street lighting & landscaping.
     To involve agencies in the development of the public transport both road, rail
    and tele-communication.
    To make available developed plots at reasonable prices for people to construct.
    To promote activities which will evolve a sound economy base for a self-
    sustained growth.

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