This document discusses housing finance in India. It defines housing finance as finance provided to individuals or groups for housing needs such as purchasing or constructing a home. It also describes the different types of housing loans offered, including direct financing to individuals and indirect financing through housing organizations. The document outlines the priority sector limits for housing loans and discusses the role of the National Housing Bank in promoting and supporting housing finance institutions in India.

1. BY:-
Gauresh Paste 36
Avantika Patil 37
Swati Poojary 38
Tushar Rai 39
Tejal Randive 40

2. • Its refers to finance that is provided to individuals or group of
individuals including co-operatives societies for purchase build
house or houses
• Housing Finance refers to the finance for meeting the various needs
related to housing :-
1. Purchase of land
2. Acquisition of a flat
3. Construction of a house
4. Extension of a house
5. Housing loans from other banks/HFCs.

3. • To get knowledge about “ India Housing finance such as operation
perform by banks, Different type of banks, Services”
• To understand current scenario of the “ Indian Housing Finance”
• To make comparative analysis of SBI,LIC (public sector) and HDFC
(private sector)

4. DIRECT HOUSING FINANCE
• Direct Housing Finance refers to the finance provided to
individuals or groups of individuals including co-operative
societies.
INDIRECT HOUSING FINANCE
• Banks should ensure that their indirect housing
finance is by way of term loans to housing finance
institutions, housing boards, other public housing
agencies, etc

5. HOUSING LOANS UNDER PRIORITY SECTOR
• The following housing finance limits will be considered as Priority Sector Advances:
1. DIRECT FINANCE
Loans up to Rs.15 lakhs in rural, semi-urban, urban and metropolitan
areas for construction of houses by individuals, with the approval of their
Boards.
Loans up to Rs.1 lakhs in rural and semi urban areas and Rs.2 lakhs
in urban areas for repairs to damaged houses by individuals.

6. 2. INDIRECT HOUSING FINANCE
Assistance given to any governmental agency for construction of
houses, or for slum clearance and rehabilitation of slum dwellers, subject to
a ceiling of Rs. 5 lakhs of loan amount per housing unit.
Assistance given to a non-governmental agency approved by the
National Housing Bank for the purpose refinance for reconstruction of
houses or for slum clearance and rehabilitation of slum dwellers, subject to
a ceiling of Rs. 5 lakh of loan amount per housing unit.

8. Earlier Marketing Scenario
• Walk in customers
• Passive marketing, belief that word of mouth from
a satisfied customer was the best form of
advertising.

9. Current Marketing Scenario
• With increased competition, buyers’ became more
demanding.
• Customers want door-step services
• Use of direct selling agents( third party distribution
channels).
• Captive distribution company.
• Property fairs and exhibitions
• Cross selling products and services.

11. NATIONAL HOUSING FINANCE
• The parliament passed the 'National Housing Bank (Amendment) Act, 2000'
which has come into force from 16th June 2000.
• The need foe a summary procedure was long felt for housing finance institution
for giving for creation fo ‘Secondary Mortgage Market’.
• The National Housing Bank (NHB) was established on 9th July 1988 under an ACT
of the Parliament viz. the National Housing Bank ACT, 1987.
• To function as a principal agency to promotr Housing Finance inatitution and to
provide financial and other support to such institution.
• Wholly owned by the Reserve Bank of India.

12. OBJECTIVES :-
• To promote a sound, healthy, visible and efficient housing
finance system to cater to all segments of the population.
• To support housing finance institution through financing
and capacity measures.
• To catalyze flow funds to all regions and income groups.
• To develop market infrastructure for sound growth of
housing finance system.
• To ensure expansion and stability in the housing finance.

13. ROLE OF NHB
• Augmenting Resources for the housing sector.
• Leveraging the liquidity.
• Support specialized institution to serve as dedicated centre’s for
housing credit.
• Fill the credit gaps suffered by low income households by
strengthening linkages between formal and informal sector.
• Strengthening linkages between formal and informal sector
institution financing MFIS.