1. HOUSING FINANCE
NANDU NATESAN
No:26

2. MEANING
A set of all financial arrangements that are made available by Housing Financial Companies(HFCs)to meet the requirements of housing is called ‘housing finance’.HF can be used for, namely
Purchase of a flat or house.
Acquisition of a plot, and construction of a house.
Construction of a house.
Extension of a house.
Repairs, renovation and up gradation of a house.

3. HOUSING FINANCE INDUSTRY
Estimated investment for meeting housing needs up to 2012: US$ 108 bn.
Housing finance contribute 7.25% of GDP last year.
Second largest employment generated in this sector.
Indian housing finance sector reported a compounded annual growth rate(CAGR) of 56% during the period of

4. According to CRISIL growth rate during 2011-2012 is 16
According to CRISIL growth rate during is 16.1% and the expected growth rate for next five years is 16.2%.
11% of total FDI during in housing.
For every INR invested in housing & construction Rs is added to GDP.

5. HOUSING FINANCE ASSISTANCE-FACTORS
Housing finance companies consider the following factors before making any financial assistance for housing
Loan Amount
Tenure
Administrative and processing costs
Pre-payment charges
Value addition
EMI calculation methods

6. LEADING HOUSING FINANCE COMAPANIES
Housing Development Finance Corporation Ltd(HDFC)
State Bank of India Home Finance
Housing Urban Development Corporation(HUDCO)
LIC Housing Finance Ltd
ICICI Home Finance Company Limited
IDBI Home Finance Limited
PNB Housing Finance Limited
Dewan Housing Finance Corporation Limited(DHFL)
GIC Housing Finance Limited
Can Fin Homes Limited(CFHL)

7. Interest Rates

8. Housing Finance Institutions in India
National Housing Bank(NHB)
Was set up in July 1988 under the Act of Parliament.
Wholly owned by RBI.
Objectives
To promote a sound,healthy,viable and efficient housing finance system to cater to all segments of the population.
To establish a network of housing finance outlets to adequately serve different regions and different income groups.
To promote saving from housing.

9. To make housing more affordable.
To promote appropriate technologies for housing.
To augment the supply of land and building materials for housing.
To enable public agencies to emerge, primarily as facilitators and suppliers of serviced land.
To augment and upgrade housing stock in the country.
To strengthen the backward and forward linkages of the housing sector with rest of the economy.
To augment the financial resources of the sector.
To enable the housing finance system to access the capital market of resources.

10. Housing Development Finance Corporation
HDFC was incorporated in 1977 with the main objective of promoting home ownership by providing long-term loans.
Objectives
To increase the number of residential houses in the country by providing housing finance in a systematic and professional manner.
To promote home-ownership.
To increase the flow of funds to the housing sector.
To strengthen housing finance by improving the domestic financial market and financial services.

11. Life Insurance Corporation Housing Finance Limited
Incorporated on 19th June 1989,it is recognized by NHB
Objectives
To assist individuals by providing finance to construct/purchase residential house/flat.
To provide assistance for extension /renovation if residential unit.
To grant loans to Corporate bodies for Staff Quarters.
To extend loans to corporates for office premises.

12. Housing and Urban Developmental Corporation of India(HUDCO)
Incorporated on 25th April,1970,HUDCO was an expression of the concern of the Central Government towards the deteriorating housing condition of the country.
Objectives
To provide long-term finance for construction of houses for residential purposes in urban and rural areas.
To finance or undertake ,wholly or partly,the setting up of new or satellite towns.
To finance or undertake the setting up of industrial enterprise for building material.

13. THANK YOUUU