A Study on Housing Finance in India with Special Reference to LIC Housing Finance Limited
Housing Finance in India during the last decade has gone through many changes. From very low exposure to the housing sector initially, banks have gone very fast in extending credit to this sector which has witnessed unprecedented expansion. With urbanization and higher level of economic growth, it is quiet natural that the housing sector has received a enormous growth. However, in the recent years the banks have gone faster than what could be a reasonably justified in financing this sector. At the international level, the speed at which banks have rushed to this sector, has resulted in financial crisis causing great damages to the stability of the banking system. Housing is one of the most important that we human beings need. Adequate housing is essential for human survival with dignity. There are many things that we would find difficult, if not impossible to do without good quality housing. Housing shortage is an universal phenomenon. It is more acute in developing countries. The housing scenario has become more critical in India in recent years. India has initiated so many housing reform that has taken many forms and manifestations characterized by the reduction in social allocation, cutbacks in public funding and promotion of a real estate culture in close partnership between the state and private actors. Mortgage financing markets can play an important role in stimulating affordable housing markets and improving housing quality in many countries. Unfortunately, these are still in infancy in India. This lack of development often translates into lower homeownership rates or poor housing quality. Most of these problems stem from the central dilemma that the resources are always too limited and housing development heavily depend on the financial institutions such as banks, credit corporations and development banks for the supply of finance to meet their daily financial needs. Against this backdrop, this paper will assess basic hurdles of Indian financing system.
Housing Sector, Housing Shortage, Mortgage, Housing market and Housing finance in India.
Dr Bandaru Appala Satya Murthy