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MBM 422

TEARM PAPER

GROUP 4TH

SUBMITTED TO DR. SUNITA MALHOTRA

GROUP MEMBERS PREETIKA SAINI (INTEGRATED) PRIYANKA (INTEGRATED) PRIYA SETH (REGULAR) PRIYANKA PUNIA (REGULAR) PRIYANKA SINGH (REGULAR) RENU SINGH (REGUALR) SARNA BATRA (REGULAR) SANA KHAN (REGULAR) SAMEERA SRIVASTAVA (REGULAR) SATGURU PRASAD (REGULAR)

UNIT 4

TOPICS

INTRODUCTION TO HOUSING FINANCESINGH

PRIYANKA

WORKING OF HOUSING FINANCE- SANA KHAN STATUS OF HOUSING FINANCE IN INDIA


SINGH

RENU

HOUSING FINANCE SYSTEM HOUSING FINANCE SCHEMES- PRIYANKA FUNDING OF HOUSING FINANCE COMPANIESPREETIKA SAINI

HOUSING FINANCE FUNDING- PRIYANKA PUNIA BUILDING HOUSES, FINANCING HOMES


BATRA SATGURU PRASAD SRIVASTAV

SARNA

HOUSING FINANCE PROBLEMS AND PROSPECTSFUTURE OF HOUSING FINANCE IN INDIASAMEERA

INTRODUCTION TO HOUSING FINANCE


Definition of Home Home is the social unit formed by a family living together. Merrian Webster Dictionary Home is the place where your parents live and where you grow up. Macmillan Dictionary Home fulfills many requirements. Home provides aesthetic satisfaction, emotional satisfaction, mental health, physical health, comfort and safety. It provides shelter from the dangers of fire and vagaries of weather, it creates conditions promoting good health such as pure water and disposal of all kinds of waste, it provides adequate space of privacy, it creates/provides congenial surroundings in which a person can work and relax. Housing is a highly complex product. It is a bulky, durable and permanent product. It has fixed location, being used only in the place where it is built. Once built, it tends to remain in existence for many years. The houses range from single family houses to many other types. But housing is more than a complex product. It is both an economic and social process. It plays a tremendous role in the economy. Housing has highly significant social implications because it provides the shelter for our basic unit the family. Almost every person is affected in his day-to-day living by the kind of house in which he lives. Housing Finance / Home Loan Housing Finance plays a vital role as an engine of equitable economic growth through the reduction of poverty and prevents slum proliferation in economy. The demand for housing has increased rapidly day by day. Therefore, to meet with the growing housing demand is the aim of the government. To achieve this aim it is required to provide the finance for housing to the people. The liberalization of the financial sector of the economy has also become possible by the housing finance. Home Loan is the funds buyer has to borrow usually from a bank or other financial institutions to purchase a property, generally secured, by a registered mortgage to the bank over the property being purchased. A mortgage loan is a debt owed on a home, the mortgage rate is the interest rate charged to the home owner for the use of the loan. Housing finance or Home loan is a broad topic, the concept of which may vary across continents, regions and countries, particularly in terms of the areas it covers. For example, what is understood by the term housing finance in a developed country may be very different from what is understood by the term in a developing country. The International Union for Housing Finance, as a multinational networking organization, has no official position on what the best definition of housing finance is. However, the selection of quotes below is offered as a snapshot of what housing finance as a topic covers: Housing finance brings together complex and multi-sector issues that are driven by constantly changing local features, such as a countrys legal environment or culture, economic makeup, regulatory environment, or political system. Loic Chiquier and Michael Lea

In addition, the concept of housing finance and housing finance systems has been evolving over time. Looking at definitions from the mid-1980s, the housing finance was defined primarily in terms of residential mortgage finance: The purpose of a housing finance system is to provide the funds which homebuyers need to purchase their homes. This is a simple objective, and the number of ways in which it can be achieved is limited. Notwithstanding this basic simplicity, in a number of countries, largely as a result of government action, very complicated housing finance systems have been developed. However, the essential feature of any system, that is, the ability to channel the funds of investors to those purchasing their homes, must remain. Mark Boleat In more recent years, a number of much wider definitions have appeared:Put simply, housing finance is what allows for the production and consumption of housing. It refers to the money we use to build and maintain the nations housing stock. But it also r efers to the money we need to pay for it, in the form of rents, mortgage loans and repayments. Peter King Housing Finance is linked with the provision of infrastructure and utilities because it has a clear relationship with the volume of new stock which will be built. As mentioned earlier, housing finance plays an intermediary role between production consumption economy and housing system. Through change in polices in the capital market can be expanded so that a part of the resources flow into housing. Thus, housing finance is an important link in the potential for transforming the creation of housing and social urban investment into strips of property and benefit for the people including low income groups. How the flow of resource helps the wider range of income groups will depend upon the terms and conditions built into the design of housing credit. Generally, housing requires longer term finance than the one in industry. Housing in India As per CSO estimate almost 5% of GDP is contributed by the housing sector in next few years. It is expected to rise to 6%, 16% of Indian workforce is engaged in the construction sector, more over the construction sector has also been responsible for the development of over 250 ancillary industries such as cement, steel, paints, bricks, etc. The construction industry ranks 3rd among the 14 major sectors in the terms of direct, indirect and in dual effects in all sectors of the Indian economy. A unit increase in expenditure in real estate sector can generate of five-fold increase in income. The Housing finance sector in India has no doubt, experienced unprecedented change in its structure from its formulation stage. Indian Housing Finance has far moved from the stage of being a solely government undertaking provided service during the 1970s to a very competitive sector with more than 45 housing finance entities providing housing loans worth ` 7,81,000 million to home buyers across India.

The housing finance revolution in India can be divided into five distinct phases:

Phases of Indian Housing Finance Phase I (Before 1970) - Government Domination Phase II (1970 1980) - HUDCO and HDFC establishes Phase III (1980 1990) - Establishment of NHB Phase IV (1990 2000) - Liberalization of Interest Rate Phase V (2000 to present) - High Growth The first phase began before 1970 when the sole provider of any house building support was the government of India through its various social schemes for public housing. The government implemented these schemes through state housing boards which were responsible for allocating serviced land and houses to individuals based on the principles of social equity. The second phase starts with the establishment of the public housing company, Housing and Urban Development Corporation (HUDCO). HUDCO was created to assist and promote housing and urban development programs with government agency HUDCO still plays an important role in implementing government initiatives such as the Valmiki Ambedkar Awas Yojna which was launched by Government of India in 2001-02 to provide shelter or upgrade the existing shelter for the people living below poverty line in the urban slums. Another important private player, Housing Development Finance Company (HDFC) was established in 1977. HDFC pioneered in individual lending, based on market principles. HDFC today is one of the largest home loan providers of the country and its success displayed that financing homes can be a very profitable business. The third phase covers the decade of 1980s, which is marked by the establishment of the countrys housing finance regulator - National Housing Bank in 1987. The era also involved the government in directing various agencies like insurance companies, commercial banks (Under priority lending requirements which allowed banks to allocate 1.5% of their incremental deposits to housing under RBI guidelines.), provident funds and mutual funds to invest part of their increment sources on housing. Two Insurance companies, LIC and GIC, started supporting the sector both directly through their newly established housing finance companies and indirectly by investing a proportion their net accretions in socially oriented schemes. The fourth phase is the era after liberalization and is characterized by dramatic changes in pricing of loans. Before 1994, the pricing of home loans were regulated by the NHB based on differential rates charged according to the size of the loan. This policy was amended in 1994 and providers were free to charge market rates for the loans above ` 25,000. The fourth phase saw a dominance of fixed interest rates, but variable rate offers started emerging at the end of the decade. The fifth Phase of rapid growth in the sector started after the millennium. Home loan disbursements rapidly grew during the first few years of this phase. The lower interest rate regime, rising disposable incomes, stable property prices and fiscal incentives made housing finance an attractive business. Home loan disbursements grew to ` 7, 68,191.90 million in 2005

from ` 1, 47,012 million in 2001. The year 2003 witnessed an annual growth rate of 76% in loan disbursements. Home is a dream of a person that shows the quality of efforts, sacrifices luxurious and above all gathering funds little by little to afford individuals dream. Hom e is one of the things that everyone wants own. All the public, private, foreign, co-operative banks and financial institutions provide home loans to the people who want to purchase a home through home loan.

THE NATIONAL HOUSING BANK During the 7th five year plan, non availability of long- term finance to individual households was realised. It was on a significant scale, a major limitation affecting the progress of housing sector in India. Thus, on the basis of recommendations of a high level group under the national housing policy 1988, NHB as the apex level institution for housing finance was set up. The NHB is wholly owned by the RBI which has contributed the entire paid-up capital. It has a Board of Directors which looks after the general superintendents directions and managements of the NHB. The NHB has been established to achieve the following objectives: To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system. To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. To augment resources for the sector and channelize them for housing. To make housing credit more affordable. To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act. To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country. To encourage the public agencies to emerge as facilitators and suppliers of serviced land for housing. Functions of NHB 1. Regulation According to NHB Act, 1987, NHB is expected to regulate the housing finance system of the country to its advantage and to prevent any housing finance institutions being conducted in such a manner which may be against the interest of depositors or of the housing finance institutions. For this purpose, NHB has been given power to determine the policy and to give directions to the housing finance institutions and their auditors.

2. Financing The financing of housing sector by the NHB is done by extending refinance to different primary lenders in respect of i. Eligible housing loans extended by them to individual beneficiaries. ii. For project loans extended by them to various implementing agencies. iii. Leading directly in case of projects undertaken by the public housing agencies for construction of houses and development of housing related infrastructure iv. Guaranteeing the repayment of principal amount and payment of interest on bonds issued by the housing finance company. v. Acting as special purpose vehicle for securitizing the housing loan receivables.

3. Promotion The NHB also contributes to improve or strengthen credit delivery network for housing finance in the country. As a part of this role NHB has framed a scheme for guaranteeing the bonds to be issued by the housing finance company. NHB has designed and conducted various training programmes considering the need for trained personnels in this sector. NHB has been financing the following housing schemes at all India level:(a) Indira Awas Yojna (b) Golden Jubilee Rural Housing Finance Scheme (c) Bharat Nirman (d) Productive Housing in Rural Areas (PHIRA) (e) 1% Interest subvention scheme 4. Urban Housing (a) Refinance of construction finance for affordable housing (b) Interest subsidy scheme (c) 1% Interest subvention scheme The new products recently introduced by NHB are (a) Residential Mortgage backed securities (b) Reverse Mortgage loan (c) Reverse Mortgage loan enabled Annuity

Working of housing finance


Indias housing finance industry mainly comprises banks and HFCs, and to a certain limited extent, smaller institutions such as community-based organisations, self-help groups, etc. The NHB operates as the principal agency for promoting, regulating and providing financial and other support to HFCs at local and regional levels, while banks and NBFCs are managed and

regulated by the RBI.As of February 5, 2013, 56 companies have been granted certificates of registration by NHB to act as HFCs. Historically, the housing finance industry was dominated by HFCs. However, towards the end of the 1990s, the scheduled commercial banks became very active in lending to the housing sector in the backdrop of lower interest rates, rising disposable incomes, stable property prices and fiscal incentives by the government.

While banks depend on their own equity and reserves and large deposit base for funding their housing loan portfolios, HFCs primarily depend on funding sources such as loans from banks and financial institutions, financing from NHB, borrowing through bonds and debentures, commercial paper, subordinate debt and fixed deposits from public, besides their own equity and reserves. Increased competition in the housing finance industry has also led to the introduction of new mortgage products in the market, such as variable interest rate loans, loan for repairs and renovation, and customised products with features like ballooning EMI, depending on the need and eligibility of the borrowers concerned. In addition, some banks and HFCs also offer home equity loans (loans against the mortgage of existing property), which may be used for non-housing purposes. Housing Scenario in India The total housing shortage in the country in 1997 was estimated to be 13.66 million units, of which 7.57 million units were in urban areas. More than 90 per cent of this shortage was for the poor and low income category. Against this background, the National Housing and Habitat Policy (NHHP) was formulated in 1998 and stressed on: removing legal, financial and administrative barriers for facilitating access to loans, finance and technology; ensuring that housing, along with supporting services, was treated as a priority and at par with the infrastructure sector; the creation of surpluses in housing stock; and providing quality and cost-effective shelters especially to the vulnerable groups and the poor.

The draft National Urban Housing and Habitat Policy, 2005, while focussing on urban shelters, emphasised on the promotion of larger flow of funds to meet the revenue requirements of urban housing and infrastructure using innovative tools. It recognised that based on historical growth patterns, the urban population of India was likely to grow to 360 million in the year 2010 and to 533 million by the year 2025. The document noted the Planning Commissions projection of total requirement of urban housing during the 10th Plan period (2002-2007) of 22.44 million dwelling units including the backlog of 8.89 million units at the beginning of this

Plan. With rising incomes, favorable demographic profiles, swelling middle class and rapid urbanisation, the demand is projected to rise to 73.96 million units for rural and urban areas during the 11th Plan period (2007-2012). Role of the National Housing Bank The National Housing Bank (NHB), a fully-owned subsidiary of the Reserve Bank of India, was set up in 1988 to accelerate housing finance activity in India and to promote the Housing Finance Companies (HFCs) by providing financial support to them. It acts as the apex institution and regulator of the housing finance industry. The NHB has issued guidelines to the HFCs on prudential norms for income recognition, asset classification, provisioning for bad and doubtful debts, capital adequacy and concentration of credit investment. The NHB also conducts inspection of the HFCs to ensure proper compliance with the prudential norms and prevent the affairs of any of them being conducted in a manner detrimental to the interests of the depositors or their own. Guidelines for asset liability management system for the HFCs have also been issued by the NHB. The housing finance industry has leaped over the years from being run majorly by the government to crossing over ~ housing companies which are engaged in this sector. These institutions have nearly raised loan worth INR ~ billion over the country. Indian Housing Loan outstanding increased from INR ~ billion in 2009 to INR ~ billion in 2010, registering an increase of housing loans to total loans from ~% in 2009 to ~% in 2010. The total housing loan disbursements have increased at a very high CAGR before the financial crisis. However, in 2009, the sector registered a dip in the double digit growth rate. Moreover in 2010, the growth rate increased for housing loan disbursements as market recovers, rising from INR ~ billion in 2009 to INR ~ billion in 2010.

The total housing shortage in the country in 1997 was estimated to be 13.66 million units, of which 7.57 million units were in urban areas. More than 90 per cent of this shortage was for the poor and low income category. Against this background, the National Housing and Habitat Policy (NHHP) was formulated in 1998 and stressed on: removing legal, financial and administrative barriers for facilitating access to loans, finance and technology; ensuring that housing, along with supporting services, was treated as a priority and at par with the infrastructure sector; the creation of surpluses in housing stock; and providing quality and cost-effective shelters especially to the vulnerable groups and the poor.

The draft National Urban Housing and Habitat Policy, 2005, while focussing on urban shelters, emphasised on the promotion of larger flow of funds to meet the revenue requirements of urban housing and infrastructure using innovative tools. It recognised that based on historical growth patterns, the urban population of India was likely to grow to 360 million in the year 2010 and to 533 million by the year 2025. The document noted the Planning Commissions projection of total requirement of urban housing during the 10th Plan period (2002-2007) of 22.44 million dwelling units including the backlog of 8.89 million units at the beginning of this Plan. With rising incomes, favorable demographic profiles, swelling middle class and rapid urbanisation, the demand is projected to rise to 73.96 million units for rural and urban areas during the 11th Plan period (2007-2012). 1.2 Role of the National Housing Bank The National Housing Bank (NHB), a fully-owned subsidiary of the Reserve Bank of India, was set up in 1988 to accelerate housing finance activity in India and to promote the Housing Finance Companies (HFCs) by providing financial support to them. It acts as the apex institution and regulator of the housing finance industry. The NHB has issued guidelines to the HFCs on prudential norms for income recognition, asset classification, provisioning for bad and doubtful debts, capital adequacy and concentration of credit investment. The NHB also conducts inspection of the HFCs to ensure proper compliance with the prudential norms and prevent the affairs of any of them being conducted in a manner detrimental to the interests of the depositors or their own. Guidelines for asset liability management system for the HFCs have also been issued by the NHB. In India, the government provisions account for a very small portion of housing activities (i.e.) less than 5% of total housing each year. Thus, the private sector seems to be dominant. However, the public polices often ignored the private sector and so it supply cannot match housing demands. India is considered as the birthplace of the number zero. Home to roughly 1.2 billion people, India is the second most populous country after China and is expected to overtake it by 2030. About one in every sixth person breathing on earth lives in India, and the growth rate of the population is still high. The Indian housing mortgage industry is on a strong footing, given the immense growth potential and its ability to weather flip flops in the real estate sector. The confidence stems from the resilience exhibited during the global downturn of 2007-09. Through enhanced risk management systems and effective standards, the regulator has mitigated the risk of any severe impact on the housing finance sector. While the mortgage industry witnessed slower growth during the crisis period, (11% CAGR during FY08-10), its asset quality remained largely intact. Mortgage/GDP in India is a meager 10%* and with improving demographics and

economies of scale, we believe there is room for growth. The recent NHB regulation on withdrawal of pre-payment penalty and uniformity in interest rates on floating loan is unlikely to have any material impact on growth and profitability. Also, interest rates and property prices, albeit a detriment, have had minimal impact on growth. Evolution of Housing Finance In 1970 HUDCO established to finance housing and infrastructure Emergence of HDFC in 1977 as a first housing finance co. inthe private sector in India NHB was established in 1988 under NHB Act, 1987 as an apex bank. Housing Sector In India Increase in construction activities with active participation of private sector Continued to be served significantly by specialized HFCs & Scheduled Commercial Banks Availability of customized and multiple loan products Proactive and Risk based Regulation Effective recovery mechanism resulting in containment of NPAs compared to other sectors of the economy Mortgage Penetration at 9% of GDP compared to 5-6% earlier

NHB Performance Highlights :2012-13 (upto 31st March 2013) Cumulative Refinance Disbursements crossed Rs. 1 lakh crore Disbursed Rs. 15750 crore under its various refinance schemes in FY 2012-13. Of this, Rural areas accounted for 43% and loans below Rs. 15 lakh accounted for 75.63%. A total of Rs. 4000 crore has been allotted under RHF in FY 2012-13 of which Rs. 3224.62 crore have been disbursed upto 31st March 2013 covering more than 1 lakh housing units. Under its Housing Micro Finance (HMF) programme, 40210 housing units located both in urban and rural areas have been financed through MFIs.

The real estate sector is one of the major contributors which support the economic development in the country and forms a major component of the financial sector. The FDI (Foreign Direct Investment) limit in the country was raised to 100% in housing and construction projects after witnessing a positive response from the foreign players. The housing finance sector in the country is flooded with big and small players. The players spread across various areas such as government organizations, banks, HFCs, co -operative societies and many others. Some of the big players operating in the industry are HDFC, LIC housing finance, SBI home finance, ICICI and Dewan Housing. HDFC Group which comprises of HDFC and HDCF bank along with SBI are the leading players in the home loan market in India. Both command a market share of ~%. LIC Housing Finance is the second largest player with ~% of the market. DHFL, HUDCO and IDBI group are some of the other major players in the industry with a market share of ~%, ~% and ~% respectively. AM Mindpower forecasts a positive outlook for housing finance industry in the near future banking upon the tremendous recovery achieved in the 4th quarter of 2009-2010. Both the industrial as well as service sector has shown tremendous strong performance and has stood strong in tough situations that augment well for the future.

Country highlights India remains the second fastest growing economy after China It took 60 years after independence to reach US$ 1 trillion in 2007 India will be a US$ 2 trillion economy by 2013-14 Expected to be a US$ 4 trillion economy before 2020 India is a domestic and consumption driven economy Consumption accounts for 70% of Indias GDP India is more insulated from global markets compared to export oriented economies Services sector contributes close to 60% of GDP Last 10 years have seen incremental but valuable changes Greater stabilization;

Strengthening of the regulatory environment; and The world recognized Indias potential DRIVERS OF THE MORTGAGE MARKET IN INDIA Market Scenario High demand growth driven by: Improved Affordability Rising disposable income Tax incentives (interest and principal repayments deductible) Affordable interest rates Increasing Urbanisation Favorable Demographics 60% of Indias population is below 30 years of age Rapid rise in new households owing to nuclear families as against joint Housing shortage estimated at 24.7 million units Rural:14.1 million units, Urban:10.6 million units (Census Report) Mortgages as a percentage of GDP

Mor

Banks

Key Players

Housing Finance Companies (HFCs)

Reserve Bank of India

Regulator

National Housing Bank

Access to low cost funds via current/saving Advantages accounts Extensive branch network

Dedicated players, better customer service Lower operating costs

High operating costs

Disadvantages

Smaller branch network

Mandated priority sector requirements, maintenance of cash reserve ratio & high statutory liquidity ratio

Higher capital adequacy ratio

INITIATIVES TO STRENGTHEN MORTGAGE FINANCE Implementation of Foreclosure Norms No foreclosure norms existed till 2002 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) enacted to facilitate recovery of defaulted loans Helped reduce non-performing assets and brought discipline amongst borrowers to repay loans Credit Bureau

Indias first credit bureau established in 2000 Has helped in strengthening the credit appraisal process NHB RESIDEX Index to monitor city wise residential price movements Mortgage Registry The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) became operational in March 2011. Central registry helps to reduce frauds arising from multiple lending by different lenders on the same immovable property Mortgage Guarantee/Insurance Credit risk will be mitigated to some extent, thereby encouraging lenders to provide loans to those from the informal sector or lower income groups Counter Cyclical Prudential Regulation: Retail Housing Loans

Moving Forward Housing High cost of land in metropolitan cities hinders affordable housing

Urban infrastructure upgradation Single window clearance for approvals Invest in low-cost building technology, prefab housing Investment linked tax incentives for developers to increase the supply of affordable housing More effective public private partnerships to tackle the shortage of housing especially in the low income group Housing Finance Deepen the debt market to ensure availability of long-term funding Encourage development of new funding instruments such as covered bonds Securitisation still at a nascent stage Helpful for smaller housing finance players so they do not need to keep raising capital Introduce a specialised institutional mechanism for providing credit enhancement which will enable smaller players to obtain investment grade ratings on the securitised pools

HOUSING FINANCE SCHEMES


GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME Objective To redress the problem of rural housing through improved access to housing credit in rural areas, for construction of house, purchase of house/flat under construction or purchase of newly built ready house/flat/repair/renovation/extension etc. Eligibility An individual customer including joint loanees, salaried persons professional and self employed business men and agriculturists having regular source of income. Promoters/Co-operative Societies/Associations/Staff are not eligible under the scheme.

Quantum of loan There is no ceiling on the quantum of loan provided by banks under the scheme. All loans extended by the banks in rural areas for housing purposes be included under the captioned scheme. However, it may be noted that refinance facility from NHB shall be limited up to a maximum of Rs.15.00 lac per dwelling unit under the scheme. Documents required Along with the loan proposal in the prescribed format the following major documents should be obtained. i. Blue Print of sanctioned plan of the house with sketch map for reaching the site. ii. Agreement for sale / Deed of conveyance / Title Deed with current land rent receipt. iii. Cost estimates for construction of house. iv. Copy of Agreement for Sale evidencing ownership of plot by promoters. v. Latest salary certificate / slip (for employed persons) or Balance Sheet with P.L., account for the last 3 years (for professionals). Additional information sheet (for agricultural borrowers) in the prescribed format. vi. Copy of IT returns / assessment orders for last 3 years where income exceeds exemption limit. vii. Copy of ration card / voter's identity card / identity card issued by employer etc. viii. Attested copy of photograph of the loanee / loanees. Margin In case of Individual ... Minimum 15% of the total project cost

In case of spouse being Co-borrower ... Minimum 10% of the total project cost Rate of interest The rate of interest will be at par with the fixed rate of interest as in case of United Housing Loan Scheme as declared by the bank time to time. Cent Home Loan Scheme

Purpose

(a) For construction / acquiring of new or existing house/flat not older than 30 years. (b) For extension in the existing house/flat. (c) For repairs/renovation/alteration of existing house/flat. (d) Finance may be granted for purchase of plot obtaining declaration from the borrower that he/she/they undertake to construct the house on the plot within the period of two years. a. Individual salaried employees, self-employed persons, professional, any other person having a legal, identified and regular source of income. b. The applicant/s must be 18 years old (completed) as on the date of application. c. In case of salaried individuals, applicants must submit original salary certificate/Form 16/income tax return. d. In case of self-employed persons, professionals and others.

Eligibility

i. Loan amount upto Rs.10.00 lakh: Satisfactory evidence of sufficient monthly/annual income to be produced by the borrower. Income certificate issued by Tahsildar/Mandal Revenue Officer/Revenue Department Officer having State level Gazetted rank can be accepted for sanction of housing loans upto Rs 10.00 lakh. ii. In case of agriculturists not filing income tax returns, income certificate issued by Tahsildar/Mandal Revenue Officer/Revenue Department Officer having State Level Gazetted rank can be accepted for sanction of housing loans upto Rs.10 lakh.

Loan amount above Rs.10.00 lakh: The borrower should produce Income Tax Return for preceding two years as evidence of income.

Quantum of a) 90% (for loans upto Rs.20 lakh) and 80% (for loans above Rs.20.00 loan lakh) of the cost of construction / purchase of new / existing flat/house or cost of extension of existing house/flat,(including cost of land) subject to Net Take Home Pay/Income norms. (Stamp duty, registration and other documentation charges, cost of life insurance cover on the life of the borrower should not be included in cost of housing unit). b) 75% of the cost of repairs/renovations/alterations of existing house/flat subject to a maximum of Rs.10.00 lakh. c) 75% of the cost (registered value) of Plot after complying with Net Take Home Pay/Income norms. Plot on standalone basis should not be financed. Cost of the Plot should not exceed 75% of the total cost of housing unit. Loan up to Rs. 20 lakhs- 10% Loan above Rs. 20 lakhs- 20% Equitable/Registered mortgage of the property being financed.

Margin

Security

Where mortgage of the property being financed is not possible, for instance, in case of purchase of house/flat on first power of attorney, other tangible securities such as mortgage of some other property, pledge of bank's FDR/ LIC policy/Govt. Securities, NSCs, KVPs, IVPs, Bonds, etc. equal to 125% of the loan amount may be taken as security. Condition of Guarantee is waived for salaried individuals irrespective of loan amount. In case of self-employed /others for loans up to Rs.20.00 lakh, no guarantee is required. However, wife, husband, father, mother, sister, brother may be taken as coapplicant instead of insisting for guarantor for loans above Rs.20.00 lakh to self-employed/others.

Guarantee

Repayment (a) For construction/acquiring of new or existing house/flat not older than 10 years, maximum period of 30 years or on borrower reaching the age of 70 years whichever is earlier. If the borrower is more than 60 years old, immediate legal heir should be made Guarantor/Co-Borrower and duly documented consent of all other legal heirs should be obtained. (b) For purchase of house/flats older than 10 years, maximum period of

25 years or on reaching the age of 70 years whichever is earlier.

(c) In case of salaried individuals, the repayment period may be extended beyond the retirement of the employee up to maximum age of 70 years, provided the post-retirement income is adequate to meet the EMI liability.

(d) In case of salaried class, the EMI may be fixed elongating repayment period up to 70 years of age, maximum 30 years in case house not older than 10 years and upto 70 years of age, maximum 25 years if the home/flat is older than 10 years. (e) In case of extension of existing home / flat, repairs/ renovation / alteration of existing home / flat repayment should be made within a maximum period of 10 years. (f)Moratorium period is to be included in the maximum repayment period allowed under housing finance scheme. In other words the moratorium period plus instalments repayment period should not exceed the maximum repayment period as per the scheme. E.g. If borrower opts to repay in 180 EMIs with 36 months moratorium period then the total repayment period will be 180+36=216 months which should be within the maximum repayment period as per the scheme. (g) In case of purchase of plot, the repayment may be combined with that of house construction loan. In case, construction does not start within stipulated 2 years, the loan is liable to be recalled and paid immediately. Exceptionally, the loan is to be repaid within next 3 years at Base Rate + 8% RoI.

Rate of Interest

Presently Rate of interest on Housing Loan is as under Loan upto Rs.30 Above Rs.30 lakh Loan above Rs. 75 lakh lakhs Tenor upto Rs.75 lakh Floating Floating a) Upto 5 years BR+0 =10.25% BR+0 =10.25% BR+0.25=10.50% b) 5 to 10 years BR+0 =10.25% BR+0 =10.25% BR+0.25=10.50% c) 10 to 30 years BR+0 =10.25% BR+0 =10.25% BR+0.25=10.50% BR = BASE RATE (PRESENT BASE RATE 10.25%)

Processing Charges

0.50% of the loan amount subject to maximum of Rs.20,000/No processing charges for staff of our Bank.

10 Prepayment Charges

No prepayment charges on floating rate housing loans.

11 12

In case of fixed rate housing loans, prepayment charges will be nil in case borrower repays entire loan amount out of his/her own sources and 1% of outstanding amount if account is taken over by other Banks/FIs. Take over of Take over of loan from other Bank/FI is allowed on certain terms and loan conditions Net Take For borrowers with annual income upto Rs.5.00 lakh, the Net Take Home Home Pay Pay/Income should not be less than 35% of Gross Monthly Salary/Income after including the income of the co-borrower/s. This can be relaxed up to 30% for borrowers with annual income above Rs.5.00 lakh but upto Rs.10.00 lakh and 25% for borrowers with annual income above Rs.10.00 lakh.

Security 1. For salaried people : a) Mortgage of property b) Employer's undertaking to deduct EMI or to remit salary to Bank and to deduct (outstanding) balance from terminal benefits. c) Third Party Guarantee 2. For Professional & Self-employed / Businessmen / Agriculturist a) Mortgage of property b) Liquid security to the tune of 25% c) Third Party Guarantee In case of loans up to Rs.50,000/- for repair/renovation/extension 100% liquid security may be accepted in lieu of mortgage. Benefits for customer: IT rebate available. SBI HOME LOANS SCHEMES SBI Home Loans Unique Advantage

Package of exclusive benefits. Low interest rates. Further, we charge interest on a daily reducing balance!! Low processing charges. No hidden costs or administrative charges. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan. Over 15,350 Branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence.

Central Bank of India

Central Bank of India offers loans for construction/ acquisition of new house/ flat, extension/ alteration in existing flat or house and purchase of existing house. The property will be duly and properly insured against fire and other natural calamities during the pendency of loan. Bank will be the beneficiary of the insurance policy. The loans are available for Indians and NRIs at fixed as well as floating interest rates. The banks also can take-over a loan from another bank.

Purpose

For construction/ Acquiring of new or existing house/flat not older than 30 years. For extension in the existing flat For repairs /renovation/ alteration in the existing flats For purchase of Plot for construction of house with composite plan.

Attractive Feature:

Loans Up To Rs. 5.00 Lakh For A Maximum Period Of 20 Years.


Rate of Interest - The rate of interest will not exceed 8.50 % per annum for the first 5 years. Margin 10 % Processing Charges No processing charges Pre-payment /penalty charges There shall be no pre-payment penalty/ charges.

Life Insurance Free Life Insurance cover for the entire amount of outstanding loan shall be provided to the borrower. Rate of Interest The rate of interest will not exceed 9.25 % per annum for the first 5 years. Margin 15 % Processing Charges No processing charges Pre-payment /penalty charges there shall be no pre-payment /penalty charges. Life Insurance Free Life Insurance cover for the entire amount of outstanding loan will be provided to the borrower.

Loans above Rs. 5.00 Lakh Upto Rs. 20.00 Lakh for A Maximum Period Of 20 Years.

Eligibility Individual salaried employees, self employed/any other person Quantum Maximum limit for b. c. above is Rs.5.00 lakh. EMI should not exceed 45% of the gross monthly income including income of the co-borrower. No maximum limit for a & d. Margin 15% for new construction and purchase of new flat or old flat not older than 10 years 20% for purchase of flats/ house older than 10 years and repairs / renovation alteration of existing house including stamp duty/ registration charges, if any. Security Equitable/Registered Mortgage of the property being financed. In case mortgage of the property financed is not possible, liquid securities like FDR/LIC Policy/Govt. Securities, NSCs, KVPs, IVPs, Bonds etc. to the extent of 150 % of loan amount may be given as primary security Rate of Interest:Float Interest Rate Float Loan Eligibility Tenure Processing Fee Charge for Changing Fixed to Floating Late Payment Charges : : : : : : 9.25 19 to 27 20 Nil 1% 2%

Statment Charge

NA

HDFC launches fixed rate home loan scheme HDFC Housing Finance has got 3 types of housing finance for their customers. HDFC Housing Finance provides Home Loans for the individuals to purchase fresh or resale house/flat as well as to construct houses. Home Improvement Loans are for facilitating internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminum windows. Home Extension Loan is for the extension of an existing dwelling unit. You can apply for HDFC Home Finance individually or jointly. Adding up the income of the co-applicant would enhance your eligibility for the home loan. However, the co-applicants need not to be a co-owner of the house. The new scheme rates: Loan Amount (Rs in Lakh) Up to 30 30.01 75 Over 75 3 Year Rate of Interest (%) 10.75 11.25 11.75 5 Year Rate of Interest (%) 11.25 11.50 11.75

This option is in addition to all the existing home loan options being offered by HDFC. This option is for customers seeking to lock in their home loan interest rates and not take risk on interest rates moving up in the initial years. Features Home Loan Counselling Door step service Wide network of financing Multiple Repayment Option

LIC Housing Finance launches two home loan schemes Borrowers would get a discount of 0.25% throughout the loan term on conversion to floating rates.

Housing finance company LIC Housing Finance (LICHFL) launched two new home loan schemes Bhagyalaxmi Plus - Under Bhagyalaxmi Plus scheme, home loans will be given to those women who will be the sole owner or first owner to buy a property, at a fixed rate of interest of 10.35% for loans up to Rs 75 lakh for the first two years, and floating rate thereafter, the company said in a press release. Moreover, borrowers would get a discount of 0.25% throughout the loan term on conversion to floating rates. New Fixed 10. - The 'New Fixed 10' scheme comes with fixed interest rates for 10 years, out of which first 5 years would carry a rate of 11.50%, for loans up to Rs 75 lakh, the release said. The scheme offers customers the flexibility to exercise an option after 5 years to convert their loan into floating rates prevalent at that time

HOUSING FINANCE COMPANIES


LIST OF HOUSING FINANCE COMPANIES:-

HDFC LTD. LIC Housing Finance Indiabulls Housing Finance GRUH Finance Dewan Housing Repco Home Loan GIC Housing Finance

HDFC LTD. HDFC' - a household name that Indians proudly reckon with! Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977 with the primary objective of meeting a social need of encouraging home ownership by providing long-term finance to households. Over the last three and a half decades, HDFC has turned the concept of housing finance for the growing middle class in India into a world-class enterprise with excellent reputation for professionalism, integrity and impeccable service. A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 4.6 million customers to own a home of their own. HDFC has a wide network of 351 offices (which includes 91 offices of HDFC's wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country. It also has offices in Dubai, London and Singapore and service associates in the Middle East region, to provide housing loans and property advisory services to NonResident Indians (NRIs) and Persons of Indian Origin (PIOs). HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity of vision, percolate through the organization. Trust, Integrity, Transparency and Professional Service are the important pillars of the brand HDFC and most importantly, people - both employees and customers - are its brand ambassadors. Customer satisfaction is the hallmark of all HDFC offerings. The first touch of HDFC's personalised service begins as soon as a customer approaches HDFC, and over time it progresses into a long and meaningful relationship. State-of-the-art information systems supported by strong in-house training programmes conducted at its specialized training centre

in Lonavla, have equipped HDFC to respond swiftly to the ever-changing customer needs and thereby empower customers in making the right home buying decision. This is what sets apart HDFC's customer service philosophy - 'With You, Right Through'. HDFC's specialist team of trained and experienced professionals follows a 'single-window concept' for providing smooth and value added services at all stages. The team guides the customers right through the entire process of property purchase - be it property search assistance, technical support prior to finalising the property, legal advice on property related documentation, personalised home loan counseling or providing tailor-made repayment options to suit the customer's specific requirements. HDFC's wide product range includes loans for purchase and construction of a residential unit, purchase of plot, home improvement loans, home extension loans, non-residential premises loans for professionals and loan against property, while its flexible repayment options include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP). HDFC also has a robust Deposits mobilisation programme. HDFC has been able to mobilise deposits from over 17 lakh depositors. HDFC has received 'AAA' rating for its Deposit products for highest safety from both CRISIL and ICRA for nineteenth consecutive years. Over the years, HDFC has emerged as a financial conglomerate with its presence in the entire gamut of financial services including banking, insurance (life and non-life), asset management, real estate venture capital and education loans. Today, HDFC is recognised as one of the Best Managed Companies in India and is a model housing finance company for developing countries with nascent housing finance markets. HDFC has undertaken several consultancy assignments in various countries across Asia, Africa and East Europe to support and establish their housing finance institutions. At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin to its 'learning by doing' philosophy. As part of its social objectives, HDFC has always endeavoured to contribute to economic development and social upliftment of the weaker sections of society and has professionally nurtured each of its social initiative as an investment. HDFC has undertaken development oriented work and supported several social initiatives in the areas of education, child welfare, medical research, welfare for the elderly and the handicapped among several others. HDFC is how millions of Indian families spell the word 'Home' as the brand not only offers Housing Finance, but also Total Housing Solutions. The HDFC Advantage

Pioneers of Housing Finance in India with over 36 years of lending experience. Widest range of home loan & deposit products. Vast network of over 351 interconnected offices which includes 3 international offices. Most experienced and empowered personnel to ensure smooth & easy processing. Online loan application facility at www.hdfc.com and across-the-counter services for new deposits, renewals & repayments. Counseling and advisory services for acquiring a property. Flexible loan repayment options Free & safe document storage. Indiabulls Housing Finance Ltd Indiabulls Housing Finance Ltd. (IBHFL), wholly owned subsidiary of Indiabulls Financial Services Ltd. (IBFSL), is a registered HFC by National Housing Bank (NHB). Incorporated in May 2005, IBHFL is a young and an enterprising new generation Housing Finance Company which has in these short span of years already spread its presence through 78 branches in 57 cities across the country. At Indiabulls Home Loans, we support your dream of owning a home. We become your partner, assisting you at every step to ensure that buying your ideal home is a happy and hassle-free experience. Our people are attentive, careful and always receptive to your needs and feedback. Along with the best rates and schemes, we offer you multiple incentives of acquiring a home loan. You will be guided in all aspects of home buying, such as selecting a suitable property, checking approvals of the project, filing documents, registration of the property, choosing the EMI and tenure of your loan to accommodate your financial resources, and much more. Further, due to our expertise on all aspects of housing finance and vast market experience, we offer valuable guidance to prevent home buyers from being cheated by fraudulent builders. IBHFL has made an expansive journey in a very short notice to approve most on-going projects where you may be willing to buy your dream home. Whether flats, row-houses, villas, plots or whether completed or under-construction, Indiabulls is a one-stop solution for all your home loan needs. Indiabulls innovative products, allows us to understand your extended financial needs better and design the most suitable repayment terms for you. We provide you with extended tenor upto 20 yrs to maintain your EMI lower, or you may opt for flexi repayment

option where you can opt for enhanced EMI initially thereby reducing the tenor or vice-versa. Competitive pricing and Customer Service are the two most important strengths of the company. IBHFL believes in the extensive use of user friendly technology to give the most efficient service to its borrowers. Our Home Loan borrowers have access to online portal and we strive to provide our customers the best of experience by modern technology support and make their home loan experience a pleasant one. IBHFL stands committed to servicing its borrowers by adopting the Fair Practice Codes and is compliant to all the regulatory norms. Customer satisfaction is the hall-mark of all our offerings and with time, we intend to progress into a long and meaningful relationship with each and every single borrower of ours. Indiabulls Home Loans offered by Indiabulls Housing Finance Ltd. is emerging as the most preferred brand in housing finance in India today. Indiabulls believes in serving its customers with passion & commitment with highest degree of transparency.

Dewan Housing Finance Ltd. DHFL, Indias second largest private housing finance company DHFL was established by Late Shri Rajesh Kumar Wadhawan (16th April, 1949 30th September, 2000), a visionary Indian businessman. The Founder Chairman observed the sad truth that most Indians couldnt get a housing loa n on fair terms. He believed that owning a home is a critical element to the building of an identity for every Indian. He thus set out on a mission to manage this social need. On April 11, 1984, DHFL was established to enable access to affordable housing finance to the lower and middle income groups in semi-urban and rural parts of India. DHFL is the second housing finance Company to be established in the country, however, with a unique mission, which is today benchmarked as a model of financial inclusion in the Indian financial services sector. While most experts lauded Shri Rajesh Kumar Wadhawans altruism, they posed pragmatic apprehensions on the possibility of this Vision becoming a reality. However, that did not influence the visionarys mission. DHFL disbursed funds from its own equity contribution and had a return of less than 8% at a time when interest rates were about 18%. But, what DHFL ascertained was the difference between those who see things as they are and the visionaries who see things as they can be.

DHFL Changing Rules, Changing Lives Over 29 years have passed since the Companys inception and today DHFL stands strong as one of Indias largest housing finance companies (and the second largest in the private sector). Today, led by Mr. Kapil Wadhawan, the Company is still living the Founders Dream and enabling access to home ownership. It is profitably doing what its Founder intended it to do. DHFL takes pride in its purpose-driven team of enthusiastic people who are willing to carry on the Founders vision and transform the housing sector in India by providing affordable housing finance. The Company has encouraged hundreds of thousands of people to make that upward journey by simplifying financial access and providing them with the privilege of home loan products, insurance services and unique fixed deposit schemes tailor made to suit their needs. Based in Indias commercial capital Mumbai, DHFL strives continually to reach out to its customers through its extensive network of over 165 Branches, 75 Service Centers, 31 Camps and 8 Regional Processing Offices spread across the length and breadth of the country. DHFL also has tie-ups with leading public and private sector banks namely Punjab & Sind Bank, United Bank of India, Central Bank of India and YES bank to provide home loans to customers through a home loan syndication agreement. DHFL has also set up representative offices in London and Dubai to serve the ever increasing NRI population in these regions. It has also tied up with UAE Exchange to offer its home loan products through the various UAE Exchange centers in the GEC countries. DHFL has been assigned a rating CARE AA+ by CARE and AAA by Brickworks for various secured long term debt instruments and CRISIL have assigned CRISIL A1+ rating for short term debt.

HOUSING FINANCING FUNDING


ABOUT HFF The Housing financing fund (HFF) is an independent government institution granting mortgage loan to individuals, municipalities, companies and organizations to finance housing purchase and construction work. The fund is financially independent and funds its lending and operations by its own income.The purpose of the fund is to ensure housing security and equality for all

Icelanders through lending and organization of housing affairs and special investments in order to increase peoples opportunities of obtaining and leasing housing on controllable terms. DEFINITION Housing lenders receive funding from a variety of sources. The most important are deposits, which comprise the majority of funding in most countries. Savings for housing programs constitute a dedicated source of funding in a few countries. The capital markets are important additional sources of funding in many countriesand provide the majority of funding in a few countries. Lenders tap the capital markets through unsecured and secured debt. Covered bonds and securitization are the most common capital market funding instruments. Governmentowned or -backed agencies such as liquidity facilities and securitization conduits facilitate access to the capital markets for many lenders. BACKGROUND AND EVOLUTION Housing lending has evolved from three different funding models. The building society model from the UK developed from a specialized deposit-funded system to the more general bankdominated depository model we see in most countries today. The mortgage bank model was created in Germany and Scandinavia and progressed to the covered bond system that provides significant capital market funding to European and, more recently, developing country markets. A temporary lender system predicated on securitization as a means to raise capital market funds developed in the United States in the 1970s and 1980s, spreading to both developed and emerging markets.

Bank deposits are an important source of funding for housing because they represent the largest accumulation of funds in most countries. Over the years commercial banks supplanted specialized building societies and savings and loans to become principal providers of loans. However dependence on deposits for funding has disadvantages for housing lenders as well. They are short term, creating liquidity risk for lenders providing long-term mortgages. In order to avoid excessive interest rate risk, lenders must write adjustable rate mortgages, exposing borrowers to interest rate risk. Deposits are not a cost-effective way to rise funding on short notice. For these reasons many lenders supplement deposits with debt (bond, note) issues. Liquidity facility loans are an alternative to bond issues (the facility acts as a centralized issuer).

Corporate bonds are an increasingly important source of funding for housing lenders. Many commercial and mortgage banks issue unsecured debt (fixed or floating rate notes). However mortgage-covered bonds have emerged as the most cost-effective and extensively used form of corporate debt. Covered bonds are dual-recourse instruments with investors having a priority claim on the cover pool assets in the event of an issuer default as well as a general claim on the assets of the institution. Banks are the sole users of covered bonds (by legislation in most countries). Covered bonds are a 2 trillion asset class in Euro pe and have been introduced in a

number of emerging markets (primarily Eastern Europe and Latin America).

Securitization rose to prominence in the United States and spread to both developed and emerging markets in the 1990s and 2000s. Securitization allows off-balance sheet finance, enabling thinly capitalized non-bank lenders to obtain funding. A recent World Bank report identified 24 emerging markets that have successfully securitized mortgage assets. Private-label securitization came to a halt in the financial crisis of 2008-2009. It has yet to restart in the United States but there have been recent issues in Australia and Europe. The United States market is now heavily dependent on government guarantees. Emerging markets were less affected by the crisis and several have continued to see new issuance. What is Housing Finance?

Housing finance is a broad topic, the concept of which can vary across continents, regions and countries, particularly in terms of the areas it covers. For example, what is understood by the term housing finance in a developed country may be very different to what is understood by the term in a developing country. The International Union for Housing Finance, as a multinational networking organization, has no official position on what the best definition of housing finance is. However, the selection of quotes below is offered as a snapshot of what housing finance as a topic covers: Housing finance brings together complex and multi-sector issues that are driven by constantly changing local features, such as a countrys legal environment or culture, economic make up regulatory environment, or political system. In addition, the concept of housing finance and housing finance system has been evolving over time. Looking at definitions from the mid-1980s, we see that housing finance was defined primarily in terms of residential mortgage finance: The purpose of a housing finance system is to provide the funds which home -buyers need to purchase their homes. This is a simple objective, and the number of ways in which it can be achieved is limited. Notwithstanding this basic simplicity, in a number of countries, largely as a result of government action, very complicated housing finance systems have been developed. However, the essential feature of any system, that is, the ability to channel the funds of investors to those purchasing their homes, must remain. Put simply, housing finance is what allows for the production and consumption of housing. It refers to the money we use to build and maintain the nations housing stock but it also refers to the money we need to pay for it, in the form of rents, mortgage loan and repayments. There are recognitions of other relevant forms of housing finance apart from residential mortgage finance] such as developer finance, rental finance, or microfinance applied to housing. Developer finance is often in the form of unregulated advance payments by buyers, and developers sometimes provide long-term finance to buyers through installments sales when

mortgages markets are not accessible. Microfinance for housing is typically used for home improvement or progressive housing purposes. Loans are typically granted without pledging properties. Although the overall impact of microfinance in housing remains limited, this activity can represent an important source of funding for those in the informal sector. The Housing Financing Fund or HFF (Icelandic: balnasjur or ILS) is Iceland's governmentowned mortgage lender. HFF grants house purchase and home improvement loans to individual borrowers, loans to build up rental housing stock to local government, companies and residents' organizations. As well as special loans such as for house renovations for the disabled or elderly. The Icelandic government's purpose for the fund is to ensure housing security and equality for all Icelanders on controllable terms. The HFF was created in 1999, following the Housing Act, no. 44/1998, to act a successor to the Old Icelandic Housing Authority (IHA, founded 1957) after the merger of the State Building Fund and the Workers' Building Fund. The HFF was substantially impacted by the 20082011 Icelandic financial crisis. In order to ensure that the HFF would remain solvent, the Icelandic government injected ISK 33 billion (2.1% of 2010 GDP) at the end of 2010, under a restructuring plan approved by the European Free Trade Association Surveillance Authority (EFTA). 1. Jump up^ About HFF "The fund is financially independent and funds its lending and operations by its own income. The purpose of the fund is to ensure housing security and equality for all Icelanders through lending and organization of housing affairs and special investments in order to increase peoples opportunities of obtaining and leasing housing on controllable terms." 2. Jump up^ OECD Economic Surveys: Iceland 2011 -OECD - 2011 Page 50 "The Housing Finance Fund (cont.). The increasing difficulties that many households have had in paying their mortgages since the financial crisis struck have necessitated substantial debt restructuring, eroding the HFF's capital. 3. Including debt write-downs associated with the December 2010 agreement between the government and the main mortgage loan providers to reduce the value of certain mortgages to 110% of the value of the underlying property, impaired loans soared from ISK 3.4 billion (0.4% of the HFF's loan portfolio) in 2009 to ISK 38.8 billion (5.2% of the loan portfolio) in 2010. To ensure that the HFF remained solvent, the government made a capital injection of ISK 33 billion (2.1% of 2010 GDP) at the end of 2010. The European Surveillance Authority recently approved this state ..." 2. Micro Housing Finance Corp rises $5.4M in new equity funding. 3. The firm has a project-led approach and ties up with developers, both public and

private, who have a similar focus on urban affordable housing. 4. Urban lower income-focused housing finance company, Micro Housing Finance Corporation (MHFC), has raised Rs 35 crore ($5.4 million) in new equity funding from existing investors including the India Financial Inclusion Fund (IFIF) and the Michael & Susan Dell Foundation (MSDF) besides adding a new investor Utilizer Ventures Pvt Ltd, the personal investment vehicle of Ronnie Screwvala. 5. The Mumbai-based company is focused on providing housing loans to financially excluded urban lower income families and with the latest funding, MHFC's equity now stands at Rs 77 crore, with a debt funding at a similar level. 6. At present, IFIF and MSDF hold 37 per cent and 10 per cent stake in the firm, respectively. 7. The firm counts financial institutions including National Housing Bank, HDFC Ltd and various commercial banks among its lenders. 8. Housing loans outstanding for MHFC as on date is Rs 100 crore with cumulative housing loans sanctioned now at Rs 165 crore, said RajnishDhall, CEO & MD, MHFC. 9. After the funding, the company expects to touch close to Rs 250 crore in cumulative loan sanctions and Rs 150 crore in loan disbursal in the current financial year. 10. Dhall also added that the company is planning to raise Rs 100 crore in debt funding in the current financial year and would explore the option of further equity funding this year. 11. We are adequately funded for FY14 and would need more funding in the next 2 to 3 years, but we may look at more equity this year from the perspective of institutional building. 12. The company has provided loans to close to 4,000 families, mostly from the informal sector, ranging from self-employed bamboo straighteners and mechanics to salaried employed like housemaids, drivers and security guards. 13. MHFC received its license from the National Housing Bank in February 2009 and began operations in June 2009. Its loan amount is usually around Rs 5 lakh (not exceeding 85 per cent of the cost of the house) for a period of up to 15 years, with the house serving as security for the loan. 14. Its rate of interest is currently between 11 per cent and 13 per cent per annum for women owners and those defined as from the weaker section by the NHB/RBI. It has a project-led approach and ties up with developers, both public and private, who have a similar focus on urban affordable housing (as defined as being in a price range generally not exceeding Rs 10 lakhs). 15. MHFC has presence in Mumbai, Pune, Ahmedabad, Surat, Jaipur, Nagpur, Indore,

Bhopal and Kolkata, and currently helps finance customers on approximately 150 lowincome housing projects. MAIN APPROACHES

The type of funding a lender uses depends on its institutional form (e.g., bank, non-bank), funding and risk management needs. It also depends on the existence and depth of capital markets in emerging countries. In most cases banks will primarily fund with deposits and augment these resources with bond issues. As markets grow deeper and more sophisticated, the proportion of funding from the capital markets typically increases. Covered bond markets most often develop after passage of special legislation defining the characteristics of the bonds and issuers as well as the legal rights and responsibilities of issuers and investors. Securitization is a more flexible form of funding that can be done without legislation in many countries. However it is the most fragile, depending critically on confidence of investors in the issuer and assets. Use of government guarantees has jump-started the securitization process in a number of countries. However the crisis has exposed the risks to the government of such guarantees. THE HOUSING FINANCING FUND GRANTS: General housing and home improvements loans to individuals. Loans for rental housing to municipalities, companies and organizations. Loans for extensive housing renovations due to borrowers limited physical capabilities. The Board of the Housing Financing Fund is free to create new loan classes, subject to the approval of the Ministry of Social Affairs. The Housing Financing Fund replaced the Icelandic Housing Authority upon the confirmation of the new housing Act, no. 44/1998 once the State building Fund and the Workers Building Fund were merged. The history of official lending for residential housing dates back to 1955 when the law on housing control, mortgage lending for housing construction and the elimination of unhealthy housing was confirmed. The Housing Authority was founded two years later and then the Housing Financing Fund at the beginning of 1999. Home loans The activities of the housing financing fund may be divided into two categories: Loans for the purchase or construction oh homes and improvements for currently owned homes. Loans to local authority, companies and non-governmental organizations for the acquisition of housing with regards to specific social factors.

Firstly, the Fund provides loans to the public to invest in new or preowned housing and to those who choose to build their homes. This category also includes loans for home improvement. The loan amount can be as high 80% of the purchase price or construction cost (as registered by the Land Registry of Iceland). In the event of home improvement, the loan may amount up to 80% of the total cost. Secondly, the Fund provides loans to local authority, companies and non-governmental organizations to purchase or build private homes for the purpose of leasing them to the public. Financial difficulties HFF offers several solutions in the event of financial hardship.

A partial payment plan can be arranged for borrowers who wish to catch up on past due mortgage payments. Refinancing defaulted payments is an option for borrowers that are behind on mortgage payments and unable to catch up. The total amount due may be turned into a separate 5 to 30 year mortgage loan. The interest rate will be the same as on the original mortgage loan. Extending the maturity of an existing mortgage for up to 70 years is a possibility, i.e. the mortgage will mature in 70 years from the date of issuance. This will reduce the current monthly payment. Payment suspension for a period of 1-3 years is another option. To qualify, one must be experiencing sudden or unexpected hardship due to illness or unemployment. Suspensions may also be granted to those owning 2 properties and have had problems with selling one of them. Payment Detainment: if payments according to a so called Payment Detainment index are lower than payments according to the Consumer Price Index (CPI), the difference will be detained until the Payment Detainment Index rises above the CPI. The detained sum will be transferred to an adjustment account which will be added to the principal of the loan.

The Debtors Ombudsman also provides consultancy, at no cost, to people with debt problems.

BUILDING HOUSES, FINANCING HOMES INDIAS RAPIDLY GROWING HOUSING AND HOUSING FINANCE MARKETS FOR THE LOW-INCOME CUSTOMER

The low-income housing market in urban India is improving, with the beginnings of a robust supply equation in place for affordable, high-quality housing and an upswing in the availability of housing finance for lower income customers .Housing, as one of the three basic needs of life, always remains on the top priority of any person, economy, government and society at large. In India, majority of the population lives in slums and shabby shelters in rural areas. The study says that rapid urbanization is the main reason behind increase in the number of low income households in Indias cities. Because of low inco me household this decent housing of formal sector is beyond their reach. Now low-income housing market has seeing a series of encouraging developments which is driven partly by the macro-economic recession and partly by the efforts of dedicated market-makers and field-builders, and this including NHB, World Bank, IFC, Michael and Susan Dell Foundation and Monitor Inclusive Markets who are committed to market-based, alternative models of building commercially viable housing for the lower-income segments, and have demonstrated the value of and the opportunity in the urban low income housing market.

Factors that lead towards increasing the number of houses for low income segment are as follows The growth of the number of new cities that are starting to see supply of low income housing. Second, the new mix of developers contains not only small developers but also larger, more established developers as well as some corporate players. The latter two are entering the space with a view to significant numbers. They are set apart from the smaller developer in that they see the low income housing market as a scale manufacturing opportunity, and are in the process of doing sizable initial projects to confirm feasibility, as a key step to building successful businesses at high volumes.

Third, these developers emphasize the importance of new ideas, whether it be the testing of innovative, scale-enhancing construction technologies that reduce construction timelines and increase profitability; whether it be participating in the development of new architectural unit layout designs that amplify comfort and livability in small spaces; or, incorporating sustainability elements that save on cost and reduce environmental impact.

The innovation imperative is critical to successfully serving a customer for whom both low price and high quality are non-negotiable. It also indicates that these players are targeting better quality, better use of space and better customer experiences while holding or lowering prices over time.6

INCREASING ACCESS: THE HOUSING FINANCE MARKET FOR LOW INCOME CUSTOMERS A strong and sustainable supply of housing would be inadequate in terms of meeting the needs of low income urban customers, without a parallel robust supply of housing finance. Housing finance has usually served only the middle-to-high income formal sector customer and therefore eliminated a large majority of lower income customers, both formal and informal. Most of the players have been reluctant to play in this market largely due to the high costs of serving this segment, compounded in the informal sector by the perceived high risk that is high NPAs, uneven payback patterns, etc. of the customer base.

The above diagram shows that there are now dedicated start-ups like Micro Housing Finance Corporation (MHFC) that have identified this very segment as a large business opportunity. Established companies with excellent track records in allied businesses have also recently entered or announced their intention to enter this market, seeing both a commercial

opportunity and cross-efficiencies. These HFCs are also aware of the innovation imperative of serving the low income customer, and even more so, the informal sector low income customer. It is a fundamentally different business from traditional housing finance, as this income group (notably the informal sector workers within it) rarely has the proof of income and expenditure documentation that large mortgage lenders rely upon to conduct their credit assessments. Assessing these customers requires a more field-based approach for cash flow verification. HFC entrepreneurs and managers routinely emphasize that to really succeed in this market, one has to pursue a dual strategy of both investing in comprehensive and innovative customer risk assessment procedures to better understand the low income informal sector customer, as well as in detailed, regular training programs for the loan officers as they are the front-end of this assessment procedure.

HOUSING FINANCE COMPANIES RISK ASSESSMENT PROCEDURE

UNDERSTAND A CUSTOMER STABILITY

UNDERSTAND A CUSTOMERS SOURCE OF INCOME

STANDARDIZATION

EMERGING CHARACTERISTICS OF THE HOUSING AND HOUSING FINANCE MARKETS The housing finance companies recognize that the business of serving this customer segment is a fundamentally different business from traditional housing finance, as these income groups (notably the informal sector workers within it) rarely have the proof of income and expenditure documentation that large mortgage lenders rely upon to conduct their credit assessments. The innovations of the HFCs who are currently testing and refining their model for assessing these customers in urban settings, are demonstrating some of the different elements of the model: field-based approaches for cash-flow verification The market is already demonstrating that a housing finance business for urban lower income, even informal, customers is viable, profitable and potentially very large. It is aimed at managing for a customer with limited affordability, a customer for whom the final price is critical. Entry of large numbers of small as well developers in this sector. And also the entry of new housing finance companies for this sector

PROBLEMS FACED BY HOUSING FINACE AND PROSPECTS


The volatility in interest rates in India has affected borrowers of all types of loans. However, home loan borrowers are the most affected, as home loans are by far the biggest loans quantum-wise. Discrepancy in interest rates between existing borrowers and new borrowers, porting of home loan, stringent rules by lenders and clauses on fixed rate home loans are some of the issues faced by home loan borrowers in the country. One of the most common issues faced by existing home loan borrowers is the discrepancy in

interest rates paid by them vis-a-vis a new borrower. While this is a valid complaint, let's first see what causes this discrepancy. Interest rates on home loans are usually linked to the benchmark rate of the bank (be it the Prime Lending Rate - PLR or the more recently introduced Base Rate, as the case may be). From this benchmark rate, a fixed rate is either deducted (in the case of a PLR) or marked up (in the case of a Base Rate) to arrive at the floating rate on the home loan. Any changes in the benchmark rate will thus automatically result in a change in the interest rate on the home loan as well. For example, consider a borrower who has taken a home loan from a Housing Finance Company (HFC) at terms which state that his interest rate will be 300bps lower than the prevailing PLR. This was the agreement entered into with the bank at the time of availing the loan. The PLR at the time of granting the loan was 15%, and the interest rate on the home loan thus stands at 12%. Now, if after 2 years, the PLR is reduced by 50 bps to 14.5%, and then the interest on his home loan also automatically falls to 11.5%. On the other hand, in order to attract customers, a new borrower may be offered terms with a mark down of 350 bps. As a result, the interest rate he gets on his home loan will be 11% only. This is the reason for the discrepancy in interest rates. In recent times, in view of the increasing incidence of customers switching banks to avail better rates, the existing borrowers are being offered an option to change to new rates in the same bank by paying a switch fee or a conversion fee. This can be 0.5% to 1% of the outstanding loan amount. This is a good way of availing interest rates offered to new customers. However, this scheme is not actively pushed by banks, and not all lenders offer this too. In such a situation, most existing borrowers resort to porting their home loans to banks which offer lower interest rates. This has been encouraged by RBI by removing the prepayment penalties on floating rate loans. However, it is important for customers to read the fine print before taking this step, as there may be many unanticipated costs to be borne. Processing fees, stamp duty, notarization charges, franking charges and insurance premium are some of the likely costs which a customer needs to bear. This can easily work out to be 0.5% to 0.75% of the loan amount. Add to this the requirement of submitting all documentation again to the new bank. It is therefore important to understand the merits of switching your home loan, and try to use the option of staying with your old bank using the switching fee option, wherever possible.

Another issue faced by fixed rate home loan borrowers in the applicability of the reset clause. Fixed rate loans are not fixed for the entire loan tenure. The reset clause is invoked as and when applicable according to the terms of the agreement. Thus, if there is a scenario of increasing interest rates in the economy, banks will reset the interest on the fixed rate home loan. Although there is no option to remove this clause, borrowers can search for banks that offer fixed rate loans with no reset clause. Borrowers also sometimes face the issue of the inflexibility on the bank's part to adjust the EMI amount or tenure in case of an interest rate revision. The hassle of reworking EMIs as well as

changing ECS mandates may deter banks from changing the EMI amount. However, from the customer point of view, it must always be remembered that reducing the tenure is a better option compared to reducing the EMI amount in case of a downward interest revision, to save on interest costs. There is a strong need to simplify and bring transparency to processes relating to land acquisition and development. Unless the problems are solved at these very basic levels, the real estate industry will continue to be sloshed in corruption. It is hoped that RBI and the Government will continue to take proactive steps in addressing the concerns of home loan borrowers - both existing as well as new borrowers. The Challenges in India - Reasons for low affordability Although India has been registering a fast paced growth during the first decade of the 21st century there is still a significant population below the poverty line (BPL), irrespective of the parameters defining the line. This requires economic and social support to get above the poverty line. The levels of unemployment also remain significantly high, thereby rendering housing unaffordable to many. It is also important to reckon the fact that even today there is a large population which remains financially excluded from the formal banking/financial systems and, in the process, is deprived of access to housing finance. Rural housing The vulnerabilities to the rural housing sector are often thought to be limited to the delivery system for housing materials, services and finance. The sector, however, is deeply affected by infrastructure deficit roads, electricity supply, drinking water and sanitation. The housing finance which played a key role in the urban housing revolution, if I may say so, is rather conspicuous by its absence in the rural setting. To aggravate the situation further, there is a real paucity of common or non-agricultural land for meeting the housing needs of the poor; whatever little is available is pre empted by the demands from other sectors. The lack of vibrancy in the market for village properties and the marked volatility in agricultural incomes combine to dampen the prospects of this nebulous sector.

Challenges from urban migration The other challenge emanates from the economic condition of our rural areas which leads to migration of population. The number of people in urban cities and towns has gone up substantially primarily as a by-product of demographic explosion and poverty induced ruralurban migration. This situation has resulted in tremendous pressure on urban infrastructure and consequent increase in the number of homeless people living on the streets. As per the 2001 census, the total urban homeless population was 0.78 million, which would be much more currently given the inadequate availability of affordable/low cost housing. As per the 2001

census, the countrys urban land mass (2.4 per cent of total land mass) housed approximately 28 per cent of the population, excluding people who live on the streets.

If we look deeper into the extent of availability of basic amenities, the position is all the more disturbing. As per the Report of Housing Condition & Amenities in India (2009), 65 per cent of rural and 11 per cent of urban households do not have adequate sanitation facilities. 34 per cent of the rural and 4 per cent of the urban households did not have the facility of electricity. Only 18 per cent of the rural households had all the three facilities (drinking water within premises, sanitation & electricity) whereas in urban areas, all the three facilities were available to 68 per cent households. Focus on salaried segment, self-employed borrowers ignored Historically banks and HFCs have largely focused on the salaried class, as can be seen by the fact that salaried borrowers account for 80-85% of the total outstanding loans. The key reason behind this skew towards the salaried segment is the ease in validating the income levels and the repayment capabilities of salaried borrowers vis--vis self-employed persons. Further, lenders have traditionally viewed the salaried segment as one with stable cash flows and, hence, consider it as lower risk. However, this has also resulted in the self-employed borrowers being largely ignored by the organised lenders, forcing them to rely on personal loans or loans from unorganised sources at higher interest rates.

Future of Housing Finance in India

In recent past a lot of focus has been given to the development of housing finance in India. It is believed a dynamic housing finance system is essential to enhance significantly the level of savings by the household sector. It is essential because housing investment has strong macroeconomic linkages and it is directly tied to the internal efficiency and productivity of the cities. Future prospects of housing finance include: Tapping of the capital market Securitisation of Mortgages Down-marketing of housing finance Strengthening and promotion of the contractual saving base and bringing about a level playing field institutions

If above points could be implemented in the Indian economy then the HFIs and similar institutions could take advantage of the vibrancy of capital market and would help in developing the secondary mortgage market. They will no longer have to depend on the budgetary allocations and the allocated credit system. Some of the loopholes in the current housing Finance System that has resulted in the slow growth of this sector are as follows: Sheltered growth of housing finance institutions HFIs have depended heavily for resources on the banking system. They have tapped neither the retail market (i.e. domestic savings) nor the capital market for its resource base. As a result the share of housing fianc investment financed by formal financial intermediaries continues to be very small. Non Traceability of Mortgages Mortgage financing is the principle mode of transaction in the housing finance market. Households rely of mortgages because of is the cheapest way of issue debts. In its present form mortgages have locked up vast sums of capital and assets for long periods (25-30 years). Moreover mortgage finance is handicapped by the fact that a majority of loans are based on fixed interest rate which is disadvantageous to the lending institutions in case of increasing interest rates and to borrowers in case of decreasing interest rates. Absence of Innovations: There is an absence of other innovative financing mechanisms particularly those that reach out to the poor households and link up formal and informal source of financing.

Increased frequency of late payments and default, difficulty in establishing clear titles and lack of credit record are some of the major problems being faced by this industry today. Laws and Regulations: The environment of housing finance market in India is heavily distorted by legislation and time consuming procedures. Local Authorities impose their own regulations through municipal and development rules. Urban Land policies restrict the supply of available land for housing construction and rent control legislation eliminates rental markets from functioning. New housing cannot develop and existing housing stock remains unutilised for fear of loss of possession.

Future Scenarios & Actions: The house mortgage penetration is still very low in India. The mortgage loan-to-GDP ratio is estimated in the range of 8-9 per cent compared to 20 per cent in China, 43 per cent in Hong Kong and 54 per cent in Singapore. Also, home loans are more concentrated in metros. For instance, 60 per cent of the loan accounts outstanding for banks are from the metro and urban areas. According to BCG-FICCI report, home loan market is expected to grow to Rs 40 lakh crore by 2020 from around Rs 5.5 lakh crore as of March 2011. This offers huge potential for growth, not only in urban areas but also in rural and semi-urban areas, which are largely untapped. Some of the forecasts made by economists for the Indian housing finance industry are as follows: 1. Development of Secondary Mortgage Market Mortgage Finance will continue to be the principle mode of housing finance transactions. However, it is evident that by itself it will not be able to meet the growing demands of housing finance. It will be necessary to initiate comprehensive steps to make mortgages traceable. This would necessarily involve a series of complementary actions such as standardisations and tightening up of foreclosure laws. 2. Real Estate Mutual Fund: To enter into the capital markets it is also important to offer the spectre of capital appreciation to potential investors. HDFC has already taken a lead in working with IL&FS

towards promotion of a Real Estate Mutual Fund. Such mutual funds can be an ideal instrument to progress further the evolution of HFIs in India combining capital market resources with the responsibility to develop properties and increase the supply and quality of housing stock. 3. Down marketing of Housing Finance Meeting the demand for housing finance for families below the median income will be an important objective of the housing finance system. The nature of this demand is very different as it is designed to deal with small amounts, flexible terms of repayments and imperfect collateral. With the conventional mortgage approach would be suitable for some households in the downmarket; others with specific circumstances would require some intermediation to be reached. The non government organisations and the cooperative network are two potential bridges for the HFIs to downmarket their operations. Downmarket offers a vast potential for meeting the needs of households below the median level. It would imply shifting the emphasis from the lower interest rates which have been the mainstay of low income housing finance in India to supporting the development of financially viable community based finance systems. 4. Affordability of Housing Affordability of housing is a key issue even if housing finance were more widely available. It would mean not only a reasonable cost of finance but a complete overhaul of current regulatory land and rental policies, stamp duties on transfer of property and fiscal treatment of property income. 5. Other developments: Addressing the increasing housing shortage & supply of mass scale housing for the lower income segments Ensuring the quality of construction Channelizing a mix of medium and long term funds Development of simple securitized mortgage products backed by adequate regulatory safeguards.

Risk mitigation and maintaining asset quality Financial innovation Need for proactive regulation and supervision

Top Housing Finance Companies in India 1. Housing Development Finance Corporation Limited (HDFC) Housing Development Finance Corporation Ltd (HDFC) is one of the leaders in the Indian housing finance market with almost 37% market share. HDFC has a wide network of 351 offices (which includes 91 offices of HDFC's wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country. It also has offices in Dubai, London and Singapore and service associates in the Middle East region, to provide housing loans and property advisory services to NonResident Indians (NRIs) and Persons of Indian Origin (PIOs). 2. State Bank of India Home Finance (SBI) State Bank of India is another major player in the Indian housing finance market with almost 16% of the market share. The SBI Housing Loan schemes are specifically designed to meet the varied requirements of the customers. It offers home loan for various purposes including new house/flat, purchase of land, renovation/ alteration/ extension of existing house/flat etc. 3. LIC Housing Finance Limited LIC Housing Finance is another major player in housing finance sector in India with almost 13% of market share. Promoted by Life Insurance Corporation of India, LICHFL has an extensive distribution network with a strong brand presence. The company was awarded with Consumer Super brand 2009/10 Status by Super brands Council. 4. ICICI Home Finance Company Limited ICICI is a leading housing finance company in India with almost 6% market share. It offers various types of home loans for its customers which may have tenure up to 20 years. The home loan interest rate is connected to the ICICI Bank Floating Reference Rate (FRR/PLR). 5. Dewan Housing Finance Corporation Limited (DHFL) DHFL stands strong as one of Indias largest housing finance companies (and the second

largest in the private sector). Based in Mumbai, DHFL strives continually to reach out to its customers through its extensive network of over 165 Branches the country. DHFL also has tie-ups with leading public and private sector banks namely Punjab & Sind Bank, United Bank of India, Central Bank of India and YES bank to provide home loans to customers through a home loan syndication agreement. 6. IDBI Housing Finance IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core Banking IT platform. It offers customized home loan features for salaried (Including NRI), Self Employed Professional and Self Employed Non Professional (Business Category). The Bank had an aggregate balance sheet size of Rs. 3,22,769 crore and total business of Rs 4,23,423 crore as on March 31, 2013. IDBI Bank's operations during the financial year ended March 31, 2013 resulted in a net profit of Rs. 1882 crore. Other Housing Finance Companies in India are: Tata Capital Housing Finance Ltd Indiabulls Housing Finance Limited GE Money Housing Finance HBN Housing Finance Ltd Religare Housing Development Finance Corporation Limited Mahindra Rural Housing Finance Ltd Deutsche Postbank Home Finance Limited Micro Housing Finance Corporation Ltd. (MHFCL) Orange City Housing Finance Limited. Sahara Housingfina Corporation Ltd. Reliance Home Finance Limited Vastu Housing Finance Corporation Ltd. India Infoline Housing Finance Limited (IIHFL) Muthoot Housing Finance Company Limited. Edelweiss Housing Finance Limited GE Money Housing Finance Kerala Housing Finance Ltd MAS Rural Housing and Mortgage Finance Ltd. Rose Valley Housing Development Finance Corporation Limited Sahara Housingfina Corporation Ltd. India Shelter Finance Corporation Limited SRG Housing Finance Ltd. Swagat Housing Finance Company Ltd. Vastu Housing Finance Corporation Ltd. Swarna Pragati Housing Micro Finance Private Limited. Akme Star Housing Finance Limited Shriram Housing Finance Limited A u Housing Finance Private Limited

Milestone Home Finance Company Private Limited New Habitat Housing Finance and Development Ltd. USB Housing Finance Corporation Limited DMI Housing Finance Private Limited