Housing Finance sector in India
Industry Classification
Life cycle position
Housing finance as a financial service is relatively young in India. The growth in housing and housing finance activities in recent years reflect the buoyant state of the housing finance market in India. The real estate sector is the second largest employment generator in the country.
In 1970, the state set up the Housing and Urban Development Corporation (HUDCO) to finance housing and urban infrastructure activities, in 1977, the Housing Development Finance Corporation (HDFC) was the first housing finance company in the private sector to be set up in India.
Currently there are 29 HFCs approved for refinance assistance from NHB.
The following types of home loans are generally available in the market:
Home Equity Loans: A form of finance to the customer by way of mortgage of existing property to the financier for taking a loan for some other purpose. The current market value of the property is the basis for providing home equity loans.
Home Extension Loans: The purpose of this loan is the extension of existing houses tike the addition of rooms, toilet facilities etc. Such loans fall under the category of home loans.
Home Improvement Loans: These loans are provided mainly for repairs and maintenance of existing houses- These could include internal and external repairing, waterproofing and roofing, complete interior renovation, tiling and flooring etc.
Home Purchase Loans: Finance provided for the purchase of ready-made houses.
Land Purchase Loans: These loans are being provided for the purchase of land for the purpose of construction of residential houses.Private housing finance sector is also doing very well in catering the need for housing finance. Dewan Housing Finance Corporation Ltd. is one of the best options in private housing finance sector. Having 22 branches all over the country and dealing in the market for more then 15 years, the group is well established in the market. Rural housing finance is one of the best schemes in India offered by Dewan Housing. With most competitive interest rates in private sector housing finance market, and personalized finance is made available to informal sectors besides formal sector like service class.
HUDCO is a powerful government organization. Financing state government for infrastructural development is the main aim. But ever since it has entered individual housing finance sector, the entire scenario has changed. The main war of interest rates has actually begun when HUDCO has started giving housing finance for 11.5 % and after deductions the interest rates comes to 8.81%.
After NHB, many housing finance companies looked at HUDCO for refinancing their proposals.
Hometrust Ltd., a company by Gujarat Ambuja Group, Global Housing finance Ltd., a syndicate of reputed builders, Weizmann Homes Ltd., a company from Weizmann Finance Ltd., Maharishi Housing Finance Corporation Ltd., a company from Maharishi Group, are also catering to housing finance sector. SBI Home finance Ltd., a subsidiary of SBI, PNB Housing Finance Ltd., a subsidiary of PNB is also doing very good business. SBI Home Finance Ltd. is doing little bit slow for the time being but PNB Housing Finance Ltd. has recently opened its new branch near Shoppers Stop, Andheri. BOB Housing Finance Ltd., a subsidiary of Bank of Baroda also having very attractive housing finance schemes. Can Fin Homes, very aggressive subsidiary of Canara Bank in Southern India, is also doing very good job in Western parts of the country.
Download Full Project Report
Industry Classification
Life cycle position
Housing finance as a financial service is relatively young in India. The growth in housing and housing finance activities in recent years reflect the buoyant state of the housing finance market in India. The real estate sector is the second largest employment generator in the country.
In 1970, the state set up the Housing and Urban Development Corporation (HUDCO) to finance housing and urban infrastructure activities, in 1977, the Housing Development Finance Corporation (HDFC) was the first housing finance company in the private sector to be set up in India.
Currently there are 29 HFCs approved for refinance assistance from NHB.
The following types of home loans are generally available in the market:
Home Equity Loans: A form of finance to the customer by way of mortgage of existing property to the financier for taking a loan for some other purpose. The current market value of the property is the basis for providing home equity loans.
Home Extension Loans: The purpose of this loan is the extension of existing houses tike the addition of rooms, toilet facilities etc. Such loans fall under the category of home loans.
Home Improvement Loans: These loans are provided mainly for repairs and maintenance of existing houses- These could include internal and external repairing, waterproofing and roofing, complete interior renovation, tiling and flooring etc.
Home Purchase Loans: Finance provided for the purchase of ready-made houses.
Land Purchase Loans: These loans are being provided for the purchase of land for the purpose of construction of residential houses.Private housing finance sector is also doing very well in catering the need for housing finance. Dewan Housing Finance Corporation Ltd. is one of the best options in private housing finance sector. Having 22 branches all over the country and dealing in the market for more then 15 years, the group is well established in the market. Rural housing finance is one of the best schemes in India offered by Dewan Housing. With most competitive interest rates in private sector housing finance market, and personalized finance is made available to informal sectors besides formal sector like service class.
HUDCO is a powerful government organization. Financing state government for infrastructural development is the main aim. But ever since it has entered individual housing finance sector, the entire scenario has changed. The main war of interest rates has actually begun when HUDCO has started giving housing finance for 11.5 % and after deductions the interest rates comes to 8.81%.
After NHB, many housing finance companies looked at HUDCO for refinancing their proposals.
Hometrust Ltd., a company by Gujarat Ambuja Group, Global Housing finance Ltd., a syndicate of reputed builders, Weizmann Homes Ltd., a company from Weizmann Finance Ltd., Maharishi Housing Finance Corporation Ltd., a company from Maharishi Group, are also catering to housing finance sector. SBI Home finance Ltd., a subsidiary of SBI, PNB Housing Finance Ltd., a subsidiary of PNB is also doing very good business. SBI Home Finance Ltd. is doing little bit slow for the time being but PNB Housing Finance Ltd. has recently opened its new branch near Shoppers Stop, Andheri. BOB Housing Finance Ltd., a subsidiary of Bank of Baroda also having very attractive housing finance schemes. Can Fin Homes, very aggressive subsidiary of Canara Bank in Southern India, is also doing very good job in Western parts of the country.
Download Full Project Report
1 comments:
I think its a great story and very useful for us.
Post a Comment