This is presentation being presented by Shivi Aggarwal, Radhika Gupta, Sweta Agarwal and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It has Guidelines of HFC, Busniess Model of HDFC
About the housing finances in India. About the national hosing bank and the functions of it. Then about the micro housing finance corporation and the types of loans, housing and its development. Discussion on the urban infrastructure.
Housing finance refers to finance provided to individuals or group of individuals for purchasing/building a house. RBI has given a free rein to banks to decide on the age of dwelling, repayment schedule, margin and security with the approval of their board. There are three types of housing finance namely direct finance, indirect finance and supplementary finance. Housing loan is normally 80 to 85% of the cost of flat. However, some banks provide 100% amount. Banks charge fixed interest rate or a floating rate on housing loans.
Get instant approval on HDFC Home Loan and also calculate your interest rates. Get advantages of HDFC housing Loan and also get instant approval from hdfc bank. For Terms and Conditions read here http://hdfc.unifiedloans.in/home-loan.html
Subject :Urban Housing
Branch : Civil Post Graduation In TOWN AND COUNTRY PLANNING
PDF Report:https://drive.google.com/file/d/0B-pK17VRHS--aUQ3MFdYRUVzbDJQcy02R1E1NE5BeVJhR3VR/view?usp=sharing
About the housing finances in India. About the national hosing bank and the functions of it. Then about the micro housing finance corporation and the types of loans, housing and its development. Discussion on the urban infrastructure.
Housing finance refers to finance provided to individuals or group of individuals for purchasing/building a house. RBI has given a free rein to banks to decide on the age of dwelling, repayment schedule, margin and security with the approval of their board. There are three types of housing finance namely direct finance, indirect finance and supplementary finance. Housing loan is normally 80 to 85% of the cost of flat. However, some banks provide 100% amount. Banks charge fixed interest rate or a floating rate on housing loans.
Get instant approval on HDFC Home Loan and also calculate your interest rates. Get advantages of HDFC housing Loan and also get instant approval from hdfc bank. For Terms and Conditions read here http://hdfc.unifiedloans.in/home-loan.html
Subject :Urban Housing
Branch : Civil Post Graduation In TOWN AND COUNTRY PLANNING
PDF Report:https://drive.google.com/file/d/0B-pK17VRHS--aUQ3MFdYRUVzbDJQcy02R1E1NE5BeVJhR3VR/view?usp=sharing
Making NBFCs relevant to ‘Make-in India’& ‘Start-up India, Stand-up India’ - ...Resurgent India
The dynamic and evolving NBFC sector necessitates reforms and evolution to ensure orderly growth. While NBFCs have been on the growth trajectory over the years, there are few areas of concern which need to be addressed. The key challenges have been highlighted below:
Housing india, affordable housing India, low cost housing India, cheap houses India, real estate India, construction India, sustainability, mass housing, slum-free india, JNNURM, housing development india, developers India, housing India, green houses India, home finance India, housing projects India, JNNURM, Dharavi project, conference housing, green building India, financing homes india, micro- financing india, home loans India, Ministry of Housing and Urban Policy Alleviation India [HUPA], Ministry of Urban Development India, Housing Development Authority India, architecture, master planning, project management, pipeline management, contractor, building materials, construction equipments India, Public Private Partnership India, Foreign Direct Investment
Housing finance companies play a major role in development of housing market in any country. Which are the major players in housing finance market in India? Find it in this detailed document.
This is a document that covers the MSME financing in India. It explores the financing sources and problems in India. It talks about working capital financing via factoring and reverse factoring, cluster financing, Germany's cluster financing, listing looking at alternativa model of listing of ventures, and Thailand's SME bond markets. It also covers the need for policy redefinition of MSMEs and policy support required.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBI's liberalization of the Indian Banking Industry in 1994.
The presentation analysing Business Strategy, Porter's Five Force Model analysis, SWOT analysis of HDFC.
History of Non-Banking Financial Companies Classification of Non-Banking Co...Mohammed Jasir PV
History of Non-Banking Financial Companies
Classification of Non-Banking Companies
Classification of Activities of NBFC
Fund Based Activities
Fee Based Activities
Concepts, Growth and Trends of Fee Based And Fund Based Activities.
Credit rating services, benefits to investors , issuers , regulators and mergers & acquisition in banking sector, narasimhan committee report and raghuram rajan report on mergers & acquisition
The basics of development financing for real estate development and businesses, from how banks make loan decisions to how SBA and other programs work to help create and retain jobs. Presented at the 2016 Ohio Basic Economic Development Course.
Non Banking Financing Companies PresentationAnkur Aggarwal
Non-bank financial companies ( NBFCs ) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions typically are restricted from taking deposits from the public depending on the jurisdiction. Nonetheless, operations of these institutions are often still covered under a country's banking regulations.
The report studies the Brand "Adidas" and its aspects like CBBE, Brand Prism, Positioning, Target Segment.
This is made by Shivi Aggarwal and Madhusudan Partani, Students of FORE School of Managemnt.
Contact: madhu.partani@gmail.com
This is presentation being presented by Shivi Aggarwal, Ankita Maheshwari, Harsh Sanchay Grover and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It attempts to measure Brand Equity of AMUL- Taste of India.
This is report made by Shivi Aggarwal, Ankita Maheshwari, Harsh Sanchay Grover and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It attempts to measure Brand Equity of AMUL- Taste of India.
This is presentation being presented by Shivi Aggarwal, Radhika Gupta, Sweta Agarwal and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It evaluates Art and Colectables as Alternative Investment. Also covers the Participants, Valuation of Art, Insurance, Tax Aspects.....
This report is made by Shivi Aggarwal, Radhika Gupta, Sweta Agarwal and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It evaluates Art and Colectables as Alternative Investment. Also covers the Participants, Valuation of Art, Insurance, Tax Aspects.....
Presentation on Birth of Euro, and Its impact on Global reserves. Also has analysis on Is it posible for Euro to replace Dollar as Global Currency.
Presentad By Students of FMG 18 A ( Aakriti kakkar, Aditi Bindlish, Ankit Gupta, Madhusudan Partani and Pragati Saraf of FORE School of Management, New Delhi)
Report on Birth of Euro, and Its impact on Global reserves. Also has analysis on Is it posible for Euro to replace Dollar as Global Currency.
Prepared By Students of FMG 18 A ( Aakriti kakkar, Aditi Bindlish, Ankit Gupta, Madhusudan Partani and Pragati Saraf of FORE School of Management, New Delhi)
It is a Presentation on Analysis of Fixed and Floating Interest rates of PGCIl Bonds. Also has the issue procedure of Bonds Issue and Characterstics of Bonds( YTM, Duration and Convexity)
It is a report on Analysis of Fixed and Floating Interest rates of PGCIl Bonds. Also has the issue procedure of Bonds Issue and Characterstics of Bonds( YTM, Duration and Convexity)
It is a Report on Impact of Dividend Distribution Tax (1997) and Impact of Increase in DDT (2007) on the 212 Companies of different sectors of BSE. It is contributed by Radhika Gupta, Shivi Aggarwal, Sweta Agarwal, Saket Kumar Singh and Madhusudan Partani
It is on Conjoint Analysis presented by Radhika Gupta, Shivi Agarwal, Neha Arya, Neha Kasturia, Mudita Maheshwari, Dhruval Dholakia, Chinmay Jaggan Anmol Sahani and Madhusudan Partani of FMG-18A, FORE School of Management
It is on Conjoint Analysis presented by Radhika Gupta, Shivi Agarwal, Neha Arya, Neha Kasturia, Mudita Maheshwari, Dhruval Dholakia, Chinmay Jaggan Anmol Sahani and Madhusudan Partani of FMG-18A, FORE School of Management
It is a presentation on The HR Practices of Best places to work. It is presented by Sravani Lakshmi, Shanky Jaiswal, Karan Khanna, Kuldeep Indeevar, Manish Kumar Verma and Madhusudan Partani of FMG 18A, FORE School of Management
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
3. Housing Industry
• From 28%(300 m) the Urban Population to increase
to 40% (600 m) by 2030
• 70% of New jobs to be created in Cities*
• Young people aspire to be come home owners
• Change in Socio Culture of Society
* as per McKinsey Global Industry research
9. Housing Finance
Housing finance connotes finance for meeting the
various needs relating to housing
Purchase of a Land
Acquisition of a
Flat
Construction of a
house
Extension of a
house
Repairs,
renovation and
upgradation of a
house/flat
Taking over
housing loans from
other banks/HFCs.
13. Importance of Housing finance
Engine of
equitable
economic growth
Reduce poverty
Prevent slum
proliferation
Take part in
financial sector
liberalization
Create and meet
growing housing
demand
15. Housing Finance system in India
Reasons for a high annual growth in this sector:
Demand
Affordability
Competition
Policy
Securitization
Urbanization
Nuclear families growing
Tax incentives
17. National Housing Bank
Commercial
Banks
Housing Finance
Companies
HUDC
O
HDFC
Bank
Sponsored
Insurance
Companies
Sponsored
Private Sector
Companies
Cooperative
Institutions
Apex
cooperati
ve
Housing
Federatio
n
State
Cooper
ative
Banks
Urban
Coope
rative
Banks
State cooperative
Agri and Rural Bank
HOUSING FINANCE SYSYTEM IN INDIA
19. National Housing Bank (NHB)
• Set-up in 1988 as the Apex level institution for housing.
• To promote housing finance institutions both at local and
regional levels
• NHB is wholly owned by Reserve Bank of India
• Ensures a sound and healthy housing finance system through
effective regulation and supervision of housing finance
institutions.
21. Promotion function
• With the setting up of NHB, there have been sustained efforts
at creating and supporting a new set of specialized institutions
to serve as dedicated centers for housing credit.
22. Regulatory function
• The requirement of regulation emanates from the need for a
credible and stable housing finance system.
• It has come out with guidelines for approving HFCs for
financial assistance and for participating in their equity.
• It has also issued the Housing Finance Companies (HFC)
Directions and guidelines for prudential norms for income
recognition, assets classification etc.
23. Financing function
• To provide financial assistance to various banks and housing
finance institutions.
• The principal focus of NHB’s programs is to generate large
scale involvement of various primary lending institutions to
serve as dedicated outlets for assistance to the housing sector.
• The refinance assistance provided by NHB to HFCs has
enabled them to increase their operations and cover a larger
section of the population.
24.
25. Strengths
Active Mainstream sector
Effective regulatory framework
Extensive network of regional
banks and institutions
Specialized skills as Dedicated
Players in the housing industry
Weakness
Interest war persist
Dilution in due diligence on part of
lenders
Lack of uniformity in norms
Increase in default rate
Asset Liability Mismatch
Opportunities
Increase Urbanization
Housing microfinance has potential
Tax rebates on house loans
Falling interest rate
Lower SLR will enhance liquidity so
more loans can be offered
Threats
High Cost of Funds
Competition from SCBs
Higher cost of home ownership is
dampening demand
26.
27. RBI Mid-term Review Highlights
pertaining to Housing Sector
• The RBI in its mid-term review policy, released on 2nd
November, 2010 made the norms for housing loans more
stringent to curb the excessive borrowing that has pushed
property prices in most metros to levels seen before the
global financial meltdown and even beyond.
• Among the steps mandated by the RBI are:
28. • Increase in the risk weight of high-value loans of Rs 75 lakh
and above to 125 per cent. Increasing the risk weight means
banks will have to keep more money aside against high value
loans.
• Bringing down the ceiling limit on housing loans to 80 per
cent of the property value. This is intended to dissuade
excessive borrowing for housing purposes. Till now, banks
used to impose their own ceiling on housing loans, but there
was no cap from the RBI side.
29. • An increase in the funds to be kept aside by banks as a
cushion in case of defaults on loans made at teaser rates. It
has increased the standard asset provisioning by banks for all
such loans to 2 per cent from the earlier 0.4 per cent.
• It has been observed that many banks at the time of initial
loan appraisal do not take into account the repaying capacity
of the borrower at normal lending rates.
The overall policy is designed to check the creation of pricing
bubble in the market
31. • Incorporated in 1977
• primary objective of meeting a social need -
that of promoting home ownership by
providing long-term finance to households for
their housing needs
• 1505 Employees as on 31st March 2010
32. Snapshots
• Loan Book ` 97,967 Crores, 22% growth y-o-y
• Deposits ` 23,081 crores, 19% growth y-o-y
• Operating Income ` 11,338.28 Crores
• EPS- ` 92.47 , 23% growth
• ROE- 20%- Highest in Industry
• Cost to Income Ratio- 72.59% Lowest
• PAT 24.88%
• Loan Turnover 0.12 times
36. Liquidity Cycle
Inflows
• EMI
• CPs/ NCDs
• Short Term Borrowings
• Refinancing
Outflows
• Loans
• Repayments of
Borrowings
• Operating Expenses
37. Process
•Need Identification
•CompetitionProduct Development
•Direct and Indirect Selling
•Cross SellingLoan Origination
•Both borrower and asset are scrutinized
•Different Documentation based on Occupation
Due Diligence
•After being satisfied, Loan deal is Signed
•Terms/ Conditions of Loan AgreementClosure
•Outflow of Funds
Disbursement
•Regulation and Control of property
•Insurance/ maintenanceMonitoring
•On Maturity, Collection of Loan/EMI
•On default, Recovery of LoanCollection/Foreclosure
38. Process and Risks
•Business Risk( Competition)- Acceptability
•Compliance RiskProduct Development
•Operational Risk
•Competition; Pricing RiskLoan Origination
•Underwriting Risk- Appraisal
•Property and Person RelatedDue Diligence
•Documentation Risk
•Interest Rate RiskClosure
•Liquidity Risk
•Credit RiskDisbursement
•Default Risk/ Delay Risk
•Operational RiskMonitoring
•Credit Risk
•Default RiskCollection/ Foreclosure
39. • All Values in ` Crores
• Data has been taken from
– Companies Annual Report
– CMIE Prowess
– Capitaline
– NHB and RBI
41. Sources of Funds
Share Capital
0.26%
Reserves Total
13%
Non Convertible
Debentures
30%
Term Loans
Institutions
2%
Term Loans Banks
25%
Unsecured Loans
30%
42. 0.26% 0.29% 0.61%
13.34% 13.25%
8.97%
29.70%
33.51%
24.59%
1.78%
2.86%
9.08%
25.43%
20.52%
29.51%
29.49% 29.56% 27.23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2009 2005
Sources of Funds
Unsecured Loans
Term Loans Banks
Term Loans Institutions
Non Convertible Debentures
Reserves Total
Share Capital
43. Application of Funds
Net Block
0.20%
Investment
s
10%
Net Current
Assets
2%
Individuals
55%
Bodies Corporate
32%
Other
1%
Loans
44. 0.20% 0.21% 0.76%
9.62% 10.82% 7.73%
2.30% 0.94%
2.53%
54.99% 56.72% 59.94%
31.50% 29.36% 27.58%
1.38% 1.96% 1.46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2009 2005
Allocation of Funds
Other
Bodies
Corporate
Individuals
Net Current
Assets
Investments
Net Block
46. Revenue Model
Interest
Income
•Interest rates
of 9-11.5% on
home loans
•Average
10.90%
Processing
Charges
•Range of 0.5
to 1.5%
depending
upon the size
•And 2 to 2.5%
in case of
Home equity
loans and Top-
ups
Investment
Income
•Investments in
SLR securities
generate
interest
income
•Yield for HDFC
stood at
10.38% for FY
10
Redemption
charges
•Average 2%
on early
redemption
/prepaid
amount
Referral
Income
•On Referring
Clients to
Subsidiaries
51. Risk
INTERNAL RISK FACTORS
• Contingent Liabilities Risk
• Foreign Exchange Risk
• Legal/Regulatory Risk
• Credit Risk
• Operations Risk
• Liquidity Risk
• Interest Rate Risk
• Any Time Exit Options on
the Loans
EXTERNAL RISK FACTORS
• Regulatory changes
• Risk of Competition
• Sensitivity to the
Economy and Extraneous
Factors
• Real Estate Prices Risk
• Increasing Competition
52. Risk Mitigation
• Stringent Credit Norms
• Regular monitoring of the maturity profiles
• Long term forward contracts, principal only swaps,
full currency swaps and currency options
53. Marketing
• 279 Outlets
• Complimented by wholly owned distribution
company, HDFC Sales Private Limited (HSPL).
• Covers 90 Locations
• Distribution Channel on Sources Loans, No role in
credit, technical, legal…
• Organizes fairs
• Through Subsidiaries
54. Products
• Home Improvement
Loan
• Home Extension Loan
• Land Acquisition
• Top-Up Loan
• Property Valuation
• Property
Identification/Advisory
• Senior Citizen's
Deposits
• Cumulative Deposits
• Non-cumulative
Deposits
• Monthly Income Plan
• Systematic Savings Plan
(SSP)
56. Competition
• L I C Housing Finance
Ltd.
• Dewan Housing Finance
Corpn. Ltd.
• Deutsche Postbank
Home Finance Ltd.
• G I C Housing Finance
Ltd.
• I D B I Homefinance Ltd.
• ICICI Bank
• State Bank of India
• Canara Bank
• Punjab National Bank
• IDBI Bank
• Standard Chartered
Bank
• Hongkong & Shanghai
Bank
57. Commercial Bank Vs HFC
•Banks: RBI
•HFCs: NHBRegulation
•Banks: 9%
•HFCs: 12%Capital Adequacy
•Banks: Can Accept All Deposits And Insured
•HFCs: Only Time Deposits, No InsuranceDeposits
•Banks: 25%
•HFCs: 12%SLR
•Banks: Deduction for NPAs under Sec 36(1) of IT Act
•HFCs: No deductionTax
• Banks: `300 Crores
• HFCs: ` 25 lacsCapital
58. Market Share of SCBs
ICICI Bank
22%
State Bank of India
18%
IDBI Bank
4%Punjab
National Bank
3%
Axis Bank
3%
Canara Bank
3%
Bank of
Baroda
3%
Union Bank of
India
3%
Central Bank of
India
3%
Others
38%
Credit to Housing by SCBs
59.
60. Primary Mortgage Market
• The market where borrowers and mortgage
originators come together to negotiate terms
and effectuate mortgage transaction
• Mortgage brokers, mortgage bankers, credit
unions and banks are all participants in the
primary mortgage market
61. Secondary Mortgage Market
• The market where mortgage loans and
servicing rights are bought and sold between
mortgage originators, mortgage aggregators
(securitizers) and investors
62. Securitization in Secondary Market
Borrowers
• Borrow from bank(Mortgage Originators)
• Pay interest and principal to mortgage holder
Banks
• Mortgage Originators
• Sell Mortgages to Aggregators
Fannie Mae &
Freddie Mac
• Mortgage Aggregators
• Receive interest and principal on mortgages from borrowers
• Securitize and sell mortgages (MBS)
Investors
• Hedge Funds, Pension Funds, Foreign central banks etc. buy MBS
• Receive interest thereon
63. Benefits of the Secondary Market
Borrowers
• Increased home affordability
Banks
• Increased liquidity
• Transfer of Default risk
Fannie Mae &
Freddie Mac
• Charge security premium (fee)from investors
Investors
• Full repayment of MBS is guaranteed
64. Downfall of Fannie Mae and
Freddie Mac
• Rapid growth in purchases of risky but profitable subprime loans
• Utilised implicit government backing to borrow at will, but without
adequate capital to protect them from unexpected losses
• Played down the dangers posed by an inflated housing market
• Did not raise enough new capital to weather the storm as the
housing slump expanded
• Over‐estimated the power and accuracy of their computer systems
and mathematical formulae to compensate for new more complex
products
65.
66. Mortgage Guarantee
• a mortgage guarantee company (MGC)By
• a credit institutionTo
• repayment of an outstanding housing loan and
interest accruedFor
• the guaranteed amountUp to
• a housing loan turns into a NPAWhen
67. Tri-partite Guarantee Contract-Purchased by the
lender and paid for by the borrower
Mortgage
Guarantee
Company (Surety)
Borrower
(Principal Debtor)
Credit Institution
68. 1. Banks and HFCs pay the MGC a premium (fee) for buying mortgage
guarantee for every loan they advance
2. The banks/HFCs pass on the cost to borrowers, just like mortgage
insurance premiums
3. The premium will depend on factors such as borrower's profile, income
proof, credit history and security available
4. The premium amount collected from thousands of loans by MGC will be
pooled into a corpus fund
5. When a loan goes bad, the bank/HFC will invoke mortgage guarantee
and MGC will pay the outstanding debt to the bank/HFC from the corpus
fund
Modus Operandi of MGC
69. Insurance vs Mortgage Guarantee
Credit Insurance
• Bi-partite contract
• Business credit insurance
• Regulated by IRDA
• Max FDI is 26%
Mortgage Guarantee
• Tri-partite contract
• Consumer credit insurance
• Regulated by RBI
• Max FDI is 49%
70. Due Diligence in Mortgage Guarantee
Validity of security on guaranteed amount
Credit worthiness of the borrower
Title to the property and marketability of the property
Use of land verified by creditor
Permission from authorities for construction of house
71. Benefits of Mortgage Guarantee
• Make housing more accessible to qualified
younger buyers
• Increase accessibility to mortgage loans in
underserved regions and communities
• Increase accessibility to mortgage loans for
entrepreneurs and the self-employed
72. Benefits of Mortgage Guarantee
• MGC act as credit investigator for credit institutions
• Stimulate the housing resale market because easier
finance available to home buyers
• Encourage lenders to bring yields lower on loans that
have a mortgage guarantee
• Provide loans with lesser down payments to deserving
borrowers