Housing finance is important to meet growing housing demand, reduce poverty, and promote equitable growth. Key institutions that provide housing finance include the National Housing Bank, HDFC, LIC Housing Finance, HUDCO, and CIDCO. These institutions aim to increase affordable housing availability through loans for home purchases, construction, repairs and more. CIDCO additionally focuses on developing infrastructure to support new urban populations in India.

1. Topic: Housing finance

2. • 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

3. 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.
MEANING OF HOUSING FINANCE

4. 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

5.
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

6.  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

7. • 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.

8.  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.

9. • 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

10. • 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.

11.  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

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.