c.paramasivan Housing finance


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c.paramasivan Housing finance

  1. 1. EMERGING TRENDS IN HOUSING FINANCE IN INDIA Dr.C. PARAMASIVAN Assistant Professor & Research supervisor P. MARI SELVAM Ph.D, Full Time Research Scholar, PG &Research Department of commerce, Periyar EVR College, Tiruchirappalli – Tamilnadu Email: paramselp@yahoo.in Cell: 9442384207 ABSTRACT --------------------------------------------------------------------------------------------------------------------House is the basic needs of human being to stay and live in a safe from the nature and artificial atmospire around the world. Even human being from the early period, starts his life only from the shelter and initially needs of the housing had stay and it become a sophisticated life style of the modern lives. In India, providing housing facilities become a challengeable task to the government and its policies laid down on needing the housing requires meets of the people. Due to growth of income generation and urbanization, housing sector become a booming industry in the country. Therefore Banks and financial institutions were established a separate division of housing finance to provide finance facilities to purchase, renovation, construction of houses. In this regards, this paper highlights the nature of housing finance and its impact in the financial system of the country, major housing finance provider, problems and prospectus of housing finance in India. --------------------------------------------------------------------------------------------------------------------Key words: Financial System, Housing Finance, Mortgages, EMI, Repayment period, ALM Introduction Housing finance is one of the emerging aspects of the financial system of the country which consists of enormous growth prospects and demand for a long period because housing is an indispensable requirements of the human being to live in the world. In India, around 30 per cent of the population still starving for a housing facilities .Requirements of the housing has been increasing fast due to the urbanization, migration, modernization, life style, purchasing power and income generation .
  2. 2. Drivers of Growth Housing may refer to House , Home , Dwelling , Residence (disambiguation) , Lodging , Shelter (building) , List of human habitation forms Housing in India becomes a vital segment in the country which consists of High demand growth due to the following reasons; Improved Affordability Rising disposable income Lower interest rates Tax incentives (interest and principal repayments deductible) Increasing Urbanization Currently only 28% of the Indian population is urban Favorable Demographics 60% of India’s population is below 30 years of age Rapid rise in new households Increasing number of nuclear families Housing finance institutions The below list exhibits the various institutions which provides housing finance facilities at present in the country. Housing finance institutions Commercial banks Cooperative housing finance societies Housing finance Companies Cooperative banks Agriculture and rural development banks Regional rural banks List of housing finance companies in India The following are the List of Housing Finance Companies granted Certificate of Registration (COR) under Section 29A of the National Housing Bank Act, 1987 Can Fin Homes Limited Cent Bank Home Finance Limited First Blue Home Finance Limited Dewan Housing Finance Corporation Ltd.
  3. 3. DHFL Vysya Housing Finance Ltd. GIC Housing Finance Ltd. GRUH Finance Ltd. Housing and Urban Development Corporation Ltd Housing Development Finance Corporation Ltd. ICICI Home Finance Company Ltd. Ind Bank Housing Ltd LIC Housing Finance Ltd Manipal Housing Finance Syndicate Ltd. National Trust Housing Finance Ltd. PNB Housing Finance Ltd REPCO Home Finance Ltd Sundaram BNP Paribas Home Finance Ltd. Vishwakriya Housing Finance Ltd Indo Pacific Housing Finance Limited IDBI Homefinance Limited (IHFL) Top 10 Housing Finance Companies in India The following are the 10 top housing finance companies of India: Housing Development Finance Corporation Limited (HDFC) Housing Development Finance Corporation Ltd (HDFC) is one of the leaders in the Indian housing finance market with almost 17% market share as on March 2010. Serving more than 38 lakh Indian customers as on March 2011. State Bank of India Home Finance (SBI) State Bank of India is another major player in the Indian housing finance market with 17% of the market share, same as HDFC's share as on March 2010. The SBI Housing Loan schemes are specifically designed to meet the varied requirements of the customers. Housing Urban Development Corporation (HUDCO) Through its ‘Niwas’ scheme, HUDCO offers housing loans for the buying/constructing house/flat. Loans are also offered for renovation/extension/alteration of existing house/flat.
  4. 4. LIC Housing Finance Limited LIC Housing Finance is another major player in housing finance sector in India with about 8% of market share. Promoted by Life Insurance Corporation of India, LICHFL has an extensive distribution network with a strong brand presence. ICICI Home Finance Company Limited ICICI is the third largest housing finance company in India with almost 13% market share. It offers various types of home loans for its customers which may have tenure up to 20 years. IDBI Home Finance Limited (IHFL) Founded in January 10, 2000, IDBI Home finance Limited has become one of the major players in the Indian housing finance market with about 4% market share as on March 2010. PNB Housing Finance Limited PNB Housing Finance Limited offers a wide range of loans for purchase/construction of property to resident Indians as well as NRIs. It also offers housing finance for renovations, repairs and enhancement of immovable properties. Dewan Housing Finance Corporation Limited (DHFL) Dewan Housing Finance Corporation Limited is one of the largest housing finance solution providers in India with an extensive network of 74 branches, 78 service centers and 35 camps spread across the nation. GIC Housing Finance Limited GIC Housing Finance Limited, one of the leading housing finance companies in India, was initially established as ‘GIC Grih Vitta Limited’ on December 12, 1989. Promoted by General Insurance Corporation of India. Can Fin Homes Limited (CFHL) Can Fin Homes Limited is another big player in the Indian housing finance market with an extensive network of 40 branches. It is also the first and one of the biggest banksponsored (sponsored by Canara Bank) housing finance companies in India.
  5. 5. Conclusion Housing finance is one of the emerging field in the modern financial system of the country which consists of enormous growth prospects due to urbanization, capital formation, changing life style and increasing youth population. All the banking and non banking institutions have been established a separate unit to deal housing finance facilities to needed people apart from national housing bank. Hence, it is concluded that, there is a demand for housing in both urban and rural population in the country and demand for the housing fiancé is also increasing due to changing attitude of the people to stay in an own house. Hence, flouring finance institution shared utilize this opportunities to provides finance to the needed people and RBI must be serious in fixing the norms and policy regarding housing fiancé became own house is the ultimate achievement of the poor and middle class people in our country. Bibliography 1. Housing finance in India – by ICFAI press. 2. Housingfinance.org – www.housingfinance.org/pdfstorage/7640060605.pdf. 3. (http://www.icfaipress.org/books/housingfinanceinIndia_ct.asp). 4. Income housing policy – by Ramesh Ramanathan (India Together). 5. India: Studies and Technical Advisories in Housing Finance - Urban Institute A credible low. 6. NHB report on trend and progress of housing in India, June 2004.