1. Our understanding of the Home Finance sector..

2. Overview of Residential Real Estate market
Housing Sector - Macro view
Major contributor of the total turnover of the Indian real estate sector
Low Penetration: Housing to GDP ratio is approx. 5-6% (significantly lower than the levels achieved in most of the advanced as well as emerging economies )
As per the NHB report on Urban Housing shortage in India ( ), India needs 18.8 million housing units in the cities alone, most of who belong to Economically Weaker Section (EWS)/ Lower Income Group (LIG) categories. People who belong to the these sections have no access to formal housing finance.
Housing Demand to Grow….
The Government has announced ‘housing for all by 2022’ as one of its headline missions. Another key area of focus for the government is increasing the number of business hubs in the country - ambitiously termed the ‘100 smart cities plan’. Both of these represent tremendous opportunities for the sector.
The easing of interest rates would both increase buyer affordability, spurring demand, and also strengthen the financial performance of real estate companies
…With increased emphasis on Affordable Housing
Around 95 per cent of urban housing shortage main­ly exists in EWS & LIG and around 90 per cent of rural housing shortage primarily exists in lower income and marginalised groups. Hence, demand for affordable housing will continue to increase in India for the coming years

3. HFCs lead the pack in home finance with multiple players
India’s mortgage-to-GDP penetration remains one of the lowest amongst developing nations at a mere 9%, with scope for significant increase to double digit over the next three years.
Banks and HFCs are the major players in the housing finance market in India. While Banks are subject to regulation and supervision by the Reserve Bank of India, HFCs are regulated and supervised by National Housing Bank
Over the years, the market share of housing finance companies (HFCs) has significantly improved vis-à-vis banks on account of robust growth in disbursements of the former. HFCs have been able to maintain their lead in the mortgage market with share of 37% as on September 30, HFCs will continue to gain market share due to strong origination skills and diverse channels of sourcing business
Banks are playing catch up with Home loans becoming key thrust segments -the home loan book for banks grew at 15% in H1FY15 and 18% in FY14 as against 14% in FY13).
Currently, access to finance for housing needs is largely focused on higher income groups, which is evident from the highly competitive mortgage lending rates prevailing for the sector. With the upwardly mobile population growing and the government impetus, the housing finance market in India likely to soon expand to include borrowers from low-to-mid income segment. The HFCs are expected to play a key and strategic role in this expansion.

4. Indian Financial Customer - Priorities in life
Growth & Security  Growth and security act as the main priorities for the consumer. Many of their financial decisions are based on these concepts.
Financial independence & the need for settlement  After a certain point the consumer wants to be financially independent. He wants to make decisions without thinking too much about it. Ultimately he wants to settle down comfortably.
Sense of Achievement  The man of the house needs to be the provider and hence make suitable provisions for the family. This gives him a sense of achievement in his life stage.
Shift in social class Ultimately the consumer wants to make a shift in his social class. The growth process completes itself on that stage
Shift in social class
Sense of achievements
Financial Independence & Need for settlement
Growth & Security

5. Multiple factors impact choice of financial service provider
Facilities
Brand name
Product portfolio
Convenience
Transparency
Relationships/Financial Partnership
Availability
Modern

6. Association with Loans- a mixed bag
Worry
Repayment
Interest
Terms & Conditions
Long Periods
Personal/Home/Car
Banks/Financial Institutions/Third Party
Tedious & Tiring
Time Consuming
Tensions & Stress
Compulsion Mandatory
Borrowing and Debts
EMI
Detailing
Loss
Reputation Society
Helpless
Dream fulfillment
State of Mind
High standard of living
Clarity
Pride
Eligibility
Task completion
Help External aid
Satisfaction
Easy
Capability
Purchase
Fulfillment
Happiness
CIBIL record - positive
Independence
Negative association with Loans
Positive Associations with Loans

7. Lets Partner Please contact: Latika Tandon|