Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India,

a, 2008

ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ˆÅú

œÏ¨¸¼¢î¸ ‚¸¾£ œÏŠ¸¢÷¸ œ¸£ 2008 ˆÅú fjiksVZ
REPORT ON TREND & PROGRESS
OF HOUSING IN INDIA
2008

jk"Vªh; vkokl cSad

National Housing Bank
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

¢¨¸«¸¡¸-¬¸»\¸ú
CONTENTS
‚š¡¸¸¡¸-1 À œÏ¬÷¸¸¨¸›¸¸ 7
Chapter-1 : Introduction

1.1 ¨¸¾¢©¨¸ˆÅ ‚¸¢˜¸ÄˆÅ œ¸¢£´©¡¸

The Global Economic Perspective

1.2 ž¸¸£÷¸ú¡¸ ‚¸¢˜¸ÄˆÅ œ¸¢£´©¡¸

The Indian Economic Perspective

1.3 ‚¸¨¸¸¬¸ ®¸½°¸ œ¸£ ‚¸¢˜¸ÄˆÅ ¢¨¸ˆÅ¸¬¸ ˆÅ¸ ¬¸¿‹¸¸÷¸

Impact of Economic Developments on the Housing Sector

1.4 ¬¸¿¬˜¸¸Š¸÷¸ 踸½÷¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ œÏ¨¸¸í
The Flow of Housing Finance through Institutional Sources

1.5 ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ Ÿ¸½¿ ‚¸¨¸¸¬¸ ®¸½°¸ ˆÅ¸ ‚¿©¸™¸›¸

The contribution of Housing Sector to GDP

‚š¡¸¸¡¸-2 À ‚¸¨¸¸¬¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ Ÿ¸½¿ ›¸ú¢÷¸Š¸÷¸ ‹¸’›¸¸ÇÅŸ¸ 17

Chapter-2 : Policy Developments in Housing and Housing Finance

2.1 ‚¸¨¸¸¬¸ú¡¸ ¬’¸ÁˆÅ, ‚¢š¸ž¸¸½Š¸ ‡¨¸¿ ˆÅŸ¸ú

Housing Stock, Occupancy & Shortage

2.2 ž¸¸£÷¸ Ÿ¸½¿ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸À ‡ˆÅ ¢›¸µ¸¸Ä¡¸ˆÅ œ¸¢£´©¡¸

Affordable Housing in India: A Crucial Perspective

2.3 ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆ½Å œÏ¢÷¸ ¢¨¸¢ž¸››¸ ‚¢ž¸ˆÅ£µ¸¸½¿ ˆÅú ž¸»¢Ÿ¸ˆÅ¸

The Role of Different Agencies towards Affordable Housing

2.4 £¸]¸ˆÅ¸½«¸ú¡¸ ¢£¡¸¸¡¸÷¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ ¬¸¿¬˜¸¸Š¸÷¸ œÏ¨¸¸í
Institutional Flow of Housing Finance through Fiscal Concession

2.5 ‚¸¨¸¸¬¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸£ ¢¨¸¢ž¸››¸ lfefr;ka (¢¬¸œ¸€¸¢£©¸¸½¿ ˆÅ¸ ¬¸¸£¸¿©¸)
Various Committees on Housing and Housing Finance (Summary of Recommendations)

3
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚š¡¸¸¡¸-3À ‚¸¨¸¸¬¸ ¢¨¸î¸ Ÿ¸½¿ ¤¸¸{¸¸£ ˆ½Å ‹¸’›¸¸ÇÅŸ¸ 35

Chapter-3 : Market Developments in Housing Finance

3.1 ¤¡¸¸]¸ ˆÅú ™£½¿ ‚¸¾£ ‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£ „›¸ˆÅ¸ ¬¸¿‹¸¸÷¸
Interest Rates & their Impact on Housing Loan

3.2 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å „÷œ¸¸™ ‚¸¾£ ¢¨¸÷¸£µ¸ - „œ¸¸¡¸÷¸¿°¸

Housing Finance Products and Delivery Mechanisms

3.3 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅú ©¸º³‚¸÷¸

The Housing Finance set-up in India

3.4 ¢›¸Ÿ¸¸Äµ¸ „Ô¸¸½Š¸ (¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸) Ÿ¸½¿ ¢›¸¢š¸¡¸¸½¿ ˆÅ¸ œÏ¨¸¸í

Flow of funds into the Construction Industry (Affordable Housing)

3.5 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ®¸½°¸ Ÿ¸½¿ ¬¸£ˆÅ¸£ ˆÅ¸ í¬÷¸®¸½œ¸

Government Intervention in the Housing Finance Sector

3.6 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ®¸½°¸ Ÿ¸½¿ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆÅú ž¸»¢Ÿ¸ˆÅ¸
RBI's Role in the Housing Finance Sector

‚š¡¸¸¡¸-4 À ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸ œ¸¢£\¸¸¥¸›¸ ‡¨¸¿ ¢›¸«œ¸¸™›¸ 47

Chapter-4 : Operations and Performance of Housing Finance Institutions

4.1 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿

Housing Finance Companies

4.2 ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ

Scheduled Commercial Banks

4.3 ¬¸íˆÅ¸£ú ®¸½°¸

The Co-operative Sector

‚š¡¸¸¡¸-5 À ž¸¸£÷¸ Ÿ¸½¿ ¢£í¸¡¸©¸ú ‚¸¨¸¸¬¸ ˆÅ¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ 78

Chapter-5 : Residential Housing Price Index in India

5.1 ¢¨¸©¨¸ Ÿ¸½¿ ¢£í¸¡¸©¸ú ‚¸¨¸¸¬¸ ˆ½Å Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ % varjZk"Vªh; ifjn`';
Residential Housing Price Indices : International Overview

5.2 ‚¸¨¸¸¬¸ú¡¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ - £¸.‚¸.¤¸ÿˆÅ ˆÅú ‡ˆÅ œ¸í¥¸

RESIDEX: NHB's Initiative

4
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

5.3 £¸.‚¸.¤¸ÿˆÅ ˆÅ¸ ‚¸¨¸¸¬¸ú¡¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ À ¬¸¿ˆÅ¥œ¸›¸¸ ‚¸¾£ ƒ¬¸ˆÅú ‚¬¸¸š¸¸£µ¸ ¢¨¸©¸½«¸÷¸¸
NHB RESIDEX: The Concept & its Salient Features

5.4 ž¸¸¨¸ú ´¢«’ˆÅ¸½µ¸

Future Outlook

‚š¡¸¸¡¸-6 À ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ˆÅ¸ ¬¸¿‹¸¸÷¸ 91

Chapter -6 : The Impact of Financial Crisis

6.1 ¬¸¿ˆÅ’ ˆÅú ©¸º³‚¸÷¸

Origins of the Crisis

6.2 ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ œ¸£ ¬¸¿‹¸¸÷¸

Impact on the Developing Countries

6.3 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ®¸½°¸ œ¸£ ¬¸¿‹¸¸÷¸

Impact on the Housing Sector in India

‚š¡¸¸¡¸-7 À ¢£¨¸¬¸Ä Ÿ¸¸Á’Š¸½]¸ (¢¨¸œ¸£ú÷¸ ¤¸¿š¸ˆÅ) †µ¸ 99

Chapter-7 : Reverse Mortgage Loan

7.1 ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ˆ½Å œ¸úŽ½ ¬¸¿ˆÅ¥œ¸›¸¸

The Concept behind RML

7.2 ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ˆÅ¸ ž¸¸£÷¸ú¡¸ œ¸¢£´©¡¸

The Indian Perspective to RML

7.3 ¢¨¸÷¸£µ¸ ˆÅ¸ „œ¸¸¡¸÷¸¿°¸

Delivery Mechanism

7.4 ¨¸¾¢©¨¸ˆÅ ¬¸¨¸¸½Ä¸ ¨¡¸¨¸í¸£

Global Best Practices

‚š¡¸¸¡¸-8À £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ 115

Chapter-8 : Role of National Housing Bank

8.1 œÏ¬÷¸¸¨¸›¸¸
Introduction

8.2 £¸.‚¸.¤¸ÿˆÅ ˆÅ¸ ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™›¸

Financial Performance of NHB

8.3 œ¸º›¸¢¨¸Äî¸ ¬¸¿¤¸¿š¸ú ž¸»¢Ÿ¸ˆÅ¸ ‚¸¾£ ¢›¸«œ¸¸™›¸

Refinance Role and Performance

8.4 ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸

Regulatory Role

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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

8.5 œ¸¡¸Ä¨¸½®¸µ¸ú¡¸ ž¸»¢Ÿ¸ˆÅ¸

Supervisory Role

8.6 ¬¸¿¨¸š¸Ä›¸¸÷Ÿ¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸

Promotional Role

8.7 £¸.‚¸.¤¸ÿˆÅ ˆ½Å ‚›¸º¬¸¿š¸¸›¸ ‡¨¸¿ ¢¨¸ˆÅ¸¬¸Š¸÷¸ œÏ¸½÷¬¸¸í›¸

Research and Development Initiatives of NHB

8.8 ›¸ƒÄ œ¸í¥¸

New Initiatives

‚š¡¸¸¡¸-9 À ‚¸¨¸¸¬¸ lw{e ¨¡¸¢«’ ¢¨¸î¸ (Ÿ¸¸ƒÇŸ½ œ¸€¸ƒ›¸½¿¬¸) - ¬¸¿ˆÅ¥œ¸›¸¸ ‡¨¸¿ ¢¬˜¸¢÷¸ 131

Chapter-9 : Housing Micro-Finance Concepts & Status

9.1 Ÿ¸¸ƒÇŸ½ œ¸€¸ƒ›¸½¿¬¸ lw{e ¨¡¸¢«’ ¢¨¸î¸

Microfinance

9.2 ‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ˆÅ¸½ œ¸¢£ž¸¸¢«¸÷¸ ˆÅ£›¸¸

Defining Housing Microfinance

9.3 ‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ Ÿ¸½¿ £¸.‚¸. ¤¸ÿˆÅ ˆÅú œ¸í¥¸

NHB’s Initiatives in Housing Microfinance

‚š¡¸¸¡¸-10 À Ÿ¸º‰¡¸ ¢¨¸«¸¡¸ ‡¨¸¿ ž¸¸¨¸ú ´¢«’ˆÅ¸½µ¸ 137

Chapter-10 : Key Issues and Future Outlook

10.1 ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ ‡ˆÅ ‚¸ˆÅ¥¸›¸

An Assessment of the Indian Housing Finance System

10.2 ‚¸œ¸™¸ œÏ¤¸¿š¸›¸

Disaster Management

10.3 $¸£ú¤¸¸½¿ ˆ½Å ‚›¸ºˆ»Å¥¸ ‚¸¨¸¸¬¸

Pro-Poor Housing

10.4 ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ¬¸¿¤¸¿š¸ú ‹¸’›¸¸ÇÅŸ¸

Developments under Reverse Mortgage Loan

10.5 ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ (íˆÅ) ¬¸¿¤¸¿š¸ú ®¸¢÷¸œ¸»¢÷¸Ä

Title Indemnity

10.6 ž¸¸¨¸ú ´¢«’ˆÅ¸½µ¸

Future Outlook

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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚š¡¸¸¡¸-1 À œÏ¬÷¸¸¨¸›¸¸
Chapter-1: Introduction

1.1 Global Economy

1.1 ¨¸¾¢©¨¸ˆÅ ‚˜¸Ä¨¡¸¨¸¬˜¸¸
1.1.1 The global economy is losing pace in face of
1.1.1 ¨¸¾¢©¨¸ˆÅ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ ˆÅú Š¸¢÷¸ ‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ ˆ½Å ¬¸¸Ÿ¸›¸½ Ÿ¸¿™ú í¸½
major financial crisis. The financial turmoil that
£íú í¾A ¨¸«¸Ä 2007 Ÿ¸½¿ ©¸º³ íºƒÄ ¢¨¸î¸ú¡¸ í¥¸\¸¥¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ œ¸»µ¸Ä began in 2007 erupted into a full-blown
‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ Ÿ¸½¿ ¤¸™¥¸ Š¸ƒÄ ˜¸ú, ¢]¸¬¸ˆ½Å ˆÅ¸£µ¸ ¤¸½£¸½{¸Š¸¸£ú ‚¢š¸ˆÅ economic crisis during the year causing high
unemployment and now threatens to become a
¤¸[õú ‚¸¾£ ‚¤¸ ‡ˆÅ Š¸¿ž¸ú£ Ÿ¸¸›¸¨¸ú¡¸ ¬¸Ÿ¸¬¡¸¸ ¤¸›¸ ]¸¸›¸½ ˆÅú vkgV major humanitarian problem. As a consequence
™½÷¸ú í¾A ƒ¬¸ ¬¸¿ˆÅ’ ˆ½Å œ¸¢£µ¸¸Ÿ¸¬¨¸³œ¸, ‚¸¢˜¸ÄˆÅ ¢¨¸ˆÅ¸¬¸ Ÿ¸½¿ Ÿ¸¿™ú, of the crisis, the slowdown in the economic
growth has been greatest in the advanced
„››¸÷¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸‚¸½¿, ¢¨¸©¸½«¸ ³œ¸ ¬¸½ ¬¸¿¡¸ºÆ÷¸ £¸]¡¸¸½¿ Ÿ¸½¿, ¬¸¤¸¬¸½ economies particularly in the United States,
‚¢š¸ˆÅ £íú í¾A ¨¸íì ‚¸¨¸¸¬¸ ®¸½°¸ ˆ½Å ¤¸º¥¸¤¸º¥¸½ ˆÅ¸ œÏ¬œ¸º€’›¸ where the burst of housing bubble eventually
took the shape of a financial crisis spreading
‚¿÷¸÷¸¸½Š¸÷¨¸¸ ‡ˆÅ ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ˆ½Å :i Ÿ¸½¿ ¤¸™¥¸ Š¸¡¸¸ ‚¸¾£ ¬¸Ÿœ¸»µ¸Ä
across the world.
¢¨¸©¨¸ Ÿ¸½¿ œ¸¾€¥¸ Š¸¡¸¸ ˜¸¸A

1.1.2 The emerging and developing economies have

1.1.2 „ž¸£÷¸ú ‚¸¾£ ¢¨¸ˆÅ¢¬¸÷¸ í¸½÷¸ú ‚˜¸Ä¨¡¸¨¸¬˜¸¸‡¿ ¢¨¸î¸ú¡¸ ¤¸¸{¸¸£ ˆ½Å
so far been less affected by the crisis on account
‹¸’›¸¸ÇÅŸ¸¸½¿ ˆ½Å Ÿ¸Ó½ ‚ž¸ú ÷¸ˆÅ ¬¸¿ˆÅ’ ¬¸½ ˆÅŸ¸ œÏž¸¸¢¨¸÷¸ íºíÄ íÿ ‚¸¾£ ÷¸½{¸ of financial market developments and have
Š¸¢÷¸ ¬¸½ ƒ›¸ˆÅ¸ ¢¨¸ˆÅ¸¬¸ ]¸¸£ú £í¸ í¾; „™¸í£µ¸¸˜¸Ä, ¨¸¾¢©¨¸ˆÅ ‚¸¢˜¸ÄˆÅ continued to grow at a rapid pace. For example,
in the face of the global meltdown, China, India
Ÿ¸¿™ú ˆ½Å ¬¸¸Ÿ¸›¸½ \¸ú›¸, ž¸¸£÷¸ ‡¨¸¿ ³¬¸ ‚ž¸ú ÷¸ˆÅ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ and Russia still managed to grow at 11.9 per
ÇÅŸ¸©¸À 11.9 œÏ¢÷¸©¸÷¸, 9.3 œÏ¢÷¸©¸÷¸ ‚¸¾£ 8.1 œÏ¢÷¸©¸÷¸ ˆÅú cent, 9.3 per cent and 8.1 per cent, respectively
during the year. The growth momentum is being
Š¸¢÷¸ ¬¸½ ¤¸[õ÷¸½ £í½ ˜¸½A ¢¨¸ˆÅ¸¬¸ ˆÅ¸ ¬¸¿¨¸½Š¸ œÏ¤¸¥¸ „÷œ¸¸™ˆÅ÷¸¸ provided by strong productivity gains as these
‚¢ž¸¥¸¸ž¸ ׸£¸ œÏ™¸›¸ ¢ˆÅ¡¸¸ ]¸¸ £í¸ í¾, Æ¡¸¸½¿¢ˆÅ ¡¸½ ™½©¸ œÏŠ¸¸Ÿ¸ú ³œ¸ ¬¸½ countries progressively integrate into the global
÷¸¾¡¸¸£ „÷œ¸¸™¸½¿ ‚¸¾£ ‚›¡¸ ˆÅ\\¸½ Ÿ¸¸¥¸ ˆ½Å ¨¸¢š¸Ä÷¸ ¨¡¸¸œ¸¸£ ˆ½Å {¸¢£‡ economy, by way of increased trade of finished
products and other raw materials.
¨¸¾¢©¨¸ˆÅ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ Ÿ¸½¿ ¢Ÿ¸¥¸ ]¸¸÷¸½ íÿA

1.1.3 During 2007-08, the global growth is projected

1.1.3 ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸, ¨¸¾¢©¨¸ˆÅ ¨¸¼¢Ö 2007 Ÿ¸½¿ 5 œÏ¢÷¸©¸÷¸ ¬¸½
to moderate from 5 per cent in 2007 to 4.1 per
2008 Ÿ¸½¿ 4.1 œÏ¢÷¸©¸÷¸ Ÿ¸½¿ ¬¸¿÷¸º¢¥¸÷¸ í¸½›¸½ Ÿ¸½¿ œÏ¢®¸œ÷¸ ˆÅú ]¸¸÷¸ú í¾A cent in 2008. The overall industrial production
¬¸Ÿ¸ŠÏ ‚¸¾Ô¸¸½¢Š¸ˆÅ „÷œ¸¸™›¸ Ÿ¸½¿ ¨¸¼¢Ö œ¸»¨¸Ä÷¸Ÿ¸ ¨¸«¸Ä ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ Ÿ¸º‰¡¸ growth was lower mainly on account of a
slowdown in the manufacturing growth and
³œ¸ ¬¸½ ¢›¸Ÿ¸¸Äµ¸ ¨¸¼¢Ö ‚¸¾£ ¢¨¸Ô¸º÷¸ ¨¸¼¢Ö ˆ½Å Ÿ¸Ó½ ˆÅŸ¸ ˜¸úA ¡¸í ‚¸¢˜¸ÄˆÅ electricity growth as compared to previous year.
Ÿ¸¿™ú œ¸»¿]¸úŠ¸÷¸ Ÿ¸¸¥¸ ˆ½Å ®¸½°¸ ¬¸¢í÷¸ ¬¸ž¸ú ®¸½°¸¸½¿ Ÿ¸½¿ œÏ¢®¸œ÷¸ ˆÅú Š¸ƒÄ ˜¸ú, The slowdown was reflected in all the sectors,
including that in the capital goods sector, which
¢]¸¬¸›¸½ œ¸»¨¸Ä÷¸Ÿ¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ Ÿ¸í÷¨¸œ¸»µ¸Ä ³œ¸ ¬¸½ ¤¸½í÷¸£ ¢›¸«œ¸¸¢™÷¸
had performed remarkably well during the
¢ˆÅ¡¸¸ ˜¸¸A œ¸»¿]¸úŠ¸÷¸ Ÿ¸¸¥¸ ˆ½Å ®¸½°¸ ›¸½ 2008 ˆ½Å ™¸¾£¸›¸ 6.5 œÏ¢÷¸©¸÷¸ previous years. The capital goods sector
ˆÅú ¨¸¼¢Ö ™]¸Ä ˆÅú ˜¸ú ]¸¸½ ¢ˆÅ œ¸»¨¸Ä÷¸Ÿ¸ ¨¸«¸Ä (2007 ˆ½Å ™¸¾£¸›¸ 19.1 recorded a growth of 6.5 per cent during 2008
which was very low in comparison to the
œÏ¢÷¸©¸÷¸) ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ¤¸íº÷¸ ˆÅŸ¸ ˜¸úA Ÿ¸í÷¨¸œ¸»µ¸Ä ‚¸š¸¸¢£ˆÅ previous year (19.1 per cent during 2007). The
„Ô¸¸½Š¸¸½¿ ˆÅú ¨¸¼¢Ö ‡ˆÅ ¨¸«¸Ä œ¸í¥¸½ ˆ½Å 6.3 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ growth of core infrastructure industries was
placed at 3.5 per cent during 2008 as compared
2008 ˆ½Å ™¸¾£¸›¸ 3.5 œÏ¢÷¸©¸÷¸ œ¸£ £‰¸ú Š¸ƒÄ ˜¸ú, ]¸¤¸¢ˆÅ ˆÅ¸½¡¸¥¸½ ˆÅ¸½ with 6.3 per cent a year ago, with all the
Ž¸½”õˆÅ£ ¬¸ž¸ú Ÿ¸¸¥¸ ¢Š¸£¸¨¸’ ˆ½Å ¬¸¸®¸ú £í½ íÿA industries witnessing deceleration, barring coal.

7
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¨¸¼¢Ö ‚¸¾£ …]¸¸Ä ÷¸˜¸¸ ‰¸¸Ô¸ œ¸™¸˜¸¸½¿Ä ˆ½Å ¢¨¸¢¨¸š¸ „œ¸ž¸¸½Š¸ ˆ½Å ˆÅ¸£µ¸ ¨¸«¸Ä
ˆ½Å ™¸¾£¸›¸ Ÿ¸{¸¤¸»÷¸ íºƒÄ í¾, ¤¸íº÷¸ ¬¸½ ¢›¸¨¸½©¸Š¸÷¸ Ÿ¸¸¥¸ ˆ½Å ¢¥¸‡
Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ˆÅú ™£½¿ í¸¥¸ íú ˆ½Å ¨¸«¸¸½ô Ÿ¸½¿ ›¸¸’ˆÅú¡¸ :i ¬¸½ ˆÅŸ¸ íºƒÄ íÿA
Ÿ¸¬¸»£, ¬¸¢¤{¸¡¸¸½¿ ‚¸¾£ œ¸€¥¸¸½¿ ÷¸˜¸¸ ˆºÅƈºÅ’ ‚¸¢™ ]¸¾¬¸½ œÏ¸˜¸¢Ÿ¸ˆÅ Ÿ¸¸¥¸
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Ÿ¸»¥¡¸ ž¸ú 2007 Ÿ¸½¿ ¢Š¸£¸ ‚¸¾£ ƒ¬¸¬¸½ Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ™£ ˆÅŸ¸ í¸½ Š¸ƒÄ ˜¸ú
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®¸Ÿ¸÷¸¸Š¸÷¸ ¤¸¸š¸¸‚¸½¿ ls ikj ikus ds fy, vkiwfrZ vko';d gSA
1.1.5 ¢¨¸™½©¸ú Ÿ¸ºÍ¸ ¤¸¸{¸¸£ Ÿ¸½¿ ‚¢¬˜¸£÷¸¸ ›¸½ ]¸º¥¸¸ƒÄ, 2007 Ÿ¸½¿ „“›¸¸ ©¸º³
¢ˆÅ¡¸¸ ˜¸¸, ]¸¤¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£ ˆ½Å ¢¥¸‡ ¨¸¸¬÷¸¢¨¸ˆÅ œÏž¸¸¨¸ú ¢¨¸¢›¸Ÿ¸¡¸
™£ ÷¸½{¸ú ¬¸½ ¢Š¸£ú í¾, Æ¡¸¸½¿¢ˆÅ ‚Ÿ¸£úˆÅú ¤¸¿š¸œ¸°¸¸½¿ ‚¸¾£ ¬¸¸Ÿ¸¸›¡¸ ©¸½¡¸£¸½¿
(ƒ¢Æ¨¸’ú) Ÿ¸½¿ ¢¨¸™½©¸ú ¢›¸¨¸½©¸, ¬¸¿¡¸ºÆ÷¸ £¸]¡¸¸½¿ ˆ½Å ¢¨¸ˆÅ¸¬¸ ˆÅú
¬¸¿ž¸¸¨¸›¸¸‡¿ ‚¸¾£ ¤¡¸¸]¸ ™£ ‹¸’›¸½ ¬¸½ ˆÅŸ¸{¸¸½¿£ œ¸”õ ]¸¸›¸½ ˆ½Å
‚¢÷¸¢£Æ÷¸, \¸¥¸¢›¸¢š¸ ˆ½Å ‚¸¾£ ‡½¬¸ú ‚¸¢¬÷¸¡¸¸½¿ œ¸£ œÏ¸¢œ÷¸, ™¸½›¸¸½¿ Ÿ¸½¿
¢¨¸©¨¸¸¬¸ ˆÅŸ¸ í¸½ ]¸¸›¸½ ¬¸½ ¤¸¸¢š¸÷¸ íºƒÄA ‚Ÿ¸£úˆÅú ”¸Á¥¸£¸½¿ ˆ½Å Ÿ¸»¥¡¸ Ÿ¸½¿
¢Š¸£¸¨¸’ ¬¸½ ¢›¸¨¸¥¸ ¢›¸¡¸¸Ä÷¸ ¤¸[õ¸ í¾ ‚¸¾£ 2006 Ÿ¸½¿ ƒ¬¸ˆÅú œ¸£¸ˆÅ¸«“¸
ˆÅú ‚œ¸½®¸¸ ‚¥œ¸÷¸£ ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ ˆ½Å 1-1/2 œÏ¢÷¸©¸÷¸ œ¸£,
2007 ˆÅú \¸¸¾˜¸ú ¢÷¸Ÿ¸¸íú ¬¸½ ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ ˆ½Å 5 œÏ¢÷¸©¸÷¸ ¬¸½
ˆÅŸ¸ í¸½›¸½ œ¸£ ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ ˆ½Å \¸¸¥¸» ¥¸½‰¸¸ ˆÅ¸ ‹¸¸’¸ ›¸ú\¸½ ¥¸¸›¸½ Ÿ¸½¿
¬¸í¸¡¸÷¸¸ ˆÅúA ”¸Á¥¸£ ˆÅ¸ Ÿ¸º‰¡¸ izfrLFkk;h ¡¸»£¸½, ¡¸½›¸ ‚¸¾£
ˆÅ›¸¸¢”¡¸›¸ ”¸Á¥¸£ ]¸¾¬¸ú ‚›¡¸ ‚¢¬˜¸£ Ÿ¸ºÍ¸‡¿ ‚¸¾£ ˆºÅŽ „ž¸£÷¸ú
‚˜¸Ä¨¡¸¨¸¬˜¸¸‚¸½¿ ˆÅú Ÿ¸ºÍ¸‚¸½¿ ˆÅ¸ ‚¢š¸Ÿ¸»¥¡¸›¸ £í¸ í¾A
1.1.6 ¨¸¾¢©¨¸ˆÅ ¤¸¿š¸œ¸°¸¸½¿ ˆÅ¸ ¤¸¸{¸¸£ œ¸»£½ ¬¸¸¥¸ ‚÷¡¸¢š¸ˆÅ ‚¢¬˜¸£ £í¸
†µ¸™¸÷¸¸‚¸½¿ ‚¸¾£ ¢›¸¨¸½©¸ˆÅ¸½¿ ›¸½ ¨¸¢š¸Ä÷¸ ¨¡¸¢÷¸ÇÅŸ¸ ]¸¸½¢‰¸Ÿ¸¸½¿ ˆ½Å ¢¥¸‡
œ¸¡¸¸Äœ÷¸ ³œ¸ ¬¸½ ‚¢š¸ˆÅ œÏ¸¢œ÷¸ ˆÅú Ÿ¸¸¿Š¸ ˆÅú, ¢]¸¬¸ˆÅ¸ ˆÅ¸£µ¸
¬¸¤¸-œÏ¸ƒŸ¸ †µ¸ ¬¸Ÿ¸¬¡¸¸ ‚¸¾£ Ÿ¸¿™ í¸½÷¸ú ¨¸¾¢©¨¸ˆÅ ‚˜¸Ä¨¡¸¨¸¬˜¸¸
÷¸˜¿¸¸ ¤¸[õ÷¸ú Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ˆ½Å ¬¸¸˜¸ œ¸©\¸¸÷¨¸÷¸úÄ †µ¸ ˆÅú \¸£Ÿ¸£¸í’
˜¸úA ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ ˆ½Å †µ¸ ¤¸¸{¸¸£ ˆÅú ‰¸¥¸¤¸¥¸ú, ÷¸½¥¸ ˆ½Å …¿\¸½
Ÿ¸»¥¡¸¸½¿, ¤¸[õ÷¸ú Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ‚¸¾£ Ÿ¸¿™ í¸½÷¸¸ ¨¸¾¢©¨¸ˆÅ ¢¨¸ˆÅ¸¬¸ œ¸»£½
¢¨¸©¨¸ Ÿ¸½¿ ©¸½¡¸£ ¤¸¸{¸¸£ Ÿ¸½¿ ¢Š¸£¸¨¸’ ˆ½Å ¢¥¸‡ ¢{¸ŸŸ¸½™¸£ íÿA
8
Report on Trend and Progress of Housing in India, 2008
1.1.4 Although, in the emerging markets, headline
inflation has strengthened during the year due to
strong demand growth and the greater weightage of
energy and food in consumption baskets, the
inflation rates for many investment goods have
decreased dramatically in recent years. The prices
of basic goods such as lentils, vegetables, fruits
and poultry are expected to slow down. The
price of various manufactured goods also fell in
2007, and this contributed to a reduced inflation
rate. However, the beginning of 2008 has seen a
dramatic rise in the price of rice and other basic
food stuff. There has also been a no-less
alarming rise in the price of oil and gas. When
coupled with a rise in the price of major
commodities, higher inflation was the only likely
outcome. In these economies, food and fuel
make up a larger share of consumption baskets
and to sustain growth, capacity constraints in
their supply need to be over come.
1.1.5 Volatility in foreign exchange markets started to
pick up in July 2007 when the real effective
exchange rate for the U.S. dollar has declined
sharply as foreign investments in U.S. bonds and
equities was dampened by reduced confidence
in both the liquidity and the returns on such
assets, as well as by the weakening of U.S.
growth prospects and interest rate cuts. The
decline in the value of the U.S. dollar has boosted
net exports and helped bring the U.S. current
account deficit down to less than 5 percent of
GDP by the fourth quarter of 2007, over 1½
percent of GDP lower than its peak in 2006. The
main counterpart to the decline of the dollar has
been appreciation of the euro, the yen, and other
floating currencies such as the Canadian dollar
and currencies of some emerging economies.
1.1.6 The global bond market was highly volatile
throughout the year. The lenders and investors
demanded substantially higher returns for the
increased default risks because of subprime
loan problem and subsequent credit crunch
together with the slowing global economy and
rising inflation. The US credit market turmoil,
higher oil prices, rising inflation and softening
global growth were responsible for lowering the
share market across the world.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

1.2 ž¸¸£÷¸ú¡¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ 1.2 Indian Economy

¬¸Ÿ¸¢«’Š¸÷¸ œ¸¡¸¸Ä¨¸£µ¸ Macro Environment

1.2.1 ž¸¸£÷¸ú¡¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ í¸¥¸ íú ˆ½Å ¨¸«¸¸½¿Ä Ÿ¸½¿ ¨¸¾¢©¨¸ˆÅ ‚˜¸Ä¨¡¸¨¸¬˜¸¸‚¸½¿
ˆ½Å ¢¬¸÷¸¸£¸½¿ Ÿ¸½¿ ¬¸½ ‡ˆÅ £íú í¾ ‚¸¾£ 2007-08 Ÿ¸½¿ „¬¸ˆÅ¸ ¢›¸«œ¸¸™›¸
‚\Ž¸ £í¸ í¾, ¡¸Ô¸¢œ¸, ¢¨¸ˆÅ¸¬¸ ¬¸¿÷¸º¢¥¸÷¸ ˜¸¸ ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ Ÿ¸½¿
¬¸Ÿ¸ŠÏ ¨¸¼¢Ö 2006-07 Ÿ¸½¿ 9.6 œÏ¢÷¸©¸÷¸ ¬¸½ ˜¸¸½”õú ¬¸ú ¢Š¸£ú ‚¸¾£
2007-08 Ÿ¸½¿ ¡¸í 9.0 œÏ¢÷¸©¸÷¸ £íúA 2007-08 Ÿ¸½¿ ¢¨¸ˆÅ¸¬¸ Ÿ¸½¿
˜¸¸½”õ¸ ¬¸¸ ¬¸¿÷¸º¥¸›¸ Ÿ¸º‰¡¸ ³œ¸ ¬¸½ ˆºÅŽ œÏ¢÷¸ˆ»Å¥¸ ‹¸’›¸¸ÇÅŸ¸ ‚¸¾£
¬¸½¨¸¸‚¸½¿ ÷¸˜¸¸ „Ô¸¸½Š¸ Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ Ÿ¸¿™ú ˆ½Å ˆÅ¸£µ¸ £í¸ í¾A
1.2.1 India's economy has been one of the stars of
global economy in recent years and performed
well during 2007-08, although the growth
moderated marginally. The overall growth in
Gross Domestic Product (GDP) has declined
marginally from 9.6 per cent in 2006-07 to 9.0
per cent in 2007-08. The slight moderation in
growth in 2007-08 has been mainly due to some
adverse development and slowdown in services
and industry.

1.2.2 ƒ¬¸ ¨¸«¸Ä Ÿ¸½¿ ‡ˆÅ ¬¸ˆÅ¸£¸÷Ÿ¸ˆÅ ¢¨¸©¸½«¸÷¸¸ ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ Ÿ¸½¿ ˆ¼Å¢«¸
®¸½°¸ ˆ½Å ‚¿©¸™¸›¸ Ÿ¸½¿ ¨¸¼¢Ö ˜¸ú, ]¸¸½ 2006-07 Ÿ¸½¿ 3.8 ¬¸½ ¬¸ºš¸£ ˆÅ£
œ¸»¨¸Ä÷¸Ÿ¸ ¨¸«¸Ä Ÿ¸½¿ ‚›¸ºž¸¨¸ ˆÅú Ÿ¸¿™ú ˆ½Å ¤¸¸™ 2007-08 Ÿ¸½¿ 4.5
œÏ¢÷¸©¸÷¸ í¸½ Š¸ƒÄ ˜¸úA ƒ¬¸ú œÏˆÅ¸£ ¬¸½, ¨¡¸¸œ¸¸£, í¸½’¥¸, œ¸¢£¨¸í›¸,
ž¸¿”¸£µ¸ ‚¸¾£ ¬¸¿œÏ½«¸µ¸ ®¸½°¸ ˆ½Å ‚¿©¸™¸›¸ Ÿ¸½¿ ‡ˆÅ ¨¸¼¢Ö £íú í¾ ]¸¸½ 11.8
œÏ¢÷¸©¸÷¸ ¬¸½ 12.0 œÏ¢÷¸©¸÷¸ ˜¸úA ÷¸˜¸¸¢œ¸, ¢›¸Ÿ¸¸Äµ¸ ®¸½°¸ Ÿ¸½¿ ¨¸¼¢Ö ™£
(2006-07 Ÿ¸½¿) 12.0 œÏ¢÷¸©¸÷¸ ¬¸½ ¢Š¸£ˆÅ£ (2007-08 Ÿ¸½¿) 9.8
œÏ¢÷¸©¸÷¸ œ¸£ ‚¸ Š¸ƒÄ ˜¸úA ¢¨¸î¸, ¤¸úŸ¸¸ ž¸» ¬¸¿œ¸™¸ ‚¸¾£ ¨¡¸¸œ¸¸£ ¬¸½¨¸¸
®¸½°¸ Ÿ¸½¿ ‡ˆÅ ‡½¬¸ú íú Ÿ¸¿™ú ˜¸úA
1.2.3 ‚¸¾Ô¸¸½¢Š¸ˆÅ ®¸½°¸ Ÿ¸½¿, ¨¸¸¬÷¸¢¨¸ˆÅ ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ ˆÅ¸ ¢¨¸ˆÅ¸¬¸
2006-07 Ÿ¸½¿ 10.6 œÏ¢÷¸©¸÷¸ ¬¸½ ‹¸’ˆÅ£ 2007-08 Ÿ¸½¿ 8.2
œÏ¢÷¸©¸÷¸ £í Š¸¡¸¸ ˜¸¸A ‚¸¾Ô¸¸½¢Š¸ˆÅ „÷œ¸¸™›¸ ˆ½Å ¬¸»\¸ˆÅ¸¿ˆÅ ˆ½Å
‚›¸º¬¸¸£, ‚¸¾Ô¸¸½¢Š¸ˆÅ ¢¨¸ˆÅ¸¬¸ 2006-07 ˆ½Å 11.6 œÏ¢÷¸©¸÷¸ ˆÅú
rqyuk esa 2007-08 Ÿ¸½¿ ˆºÅŽ ˆÅŸ¸ 8.3 œÏ¢÷¸©¸÷¸ ™]¸Ä ¢ˆÅ¡¸¸ Š¸¡¸¸
˜¸¸] ¢]¸¬¸ˆÅ¸ ˆÅ¸£µ¸ ‰¸›¸›¸ ‚¸¾£ ¢¨¸Ô¸º÷¸ ®¸½°¸¸½¿ Ÿ¸½¿ ‚¥œ¸ ¢¨¸ˆÅ¸¬¸ £í¸
˜¸¸ A ƒ¬¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, ¢›¸Ÿ¸¸Äµ¸ ®¸½°¸ ›¸½ ¢œ¸Ž¥¸½ \¸¸£ ¨¸«¸¸½¿Ä Ÿ¸½¿ ¬¸¤¸¬¸½
ˆÅŸ¸ ¢¨¸ˆÅ¸¬¸ ™]¸Ä ¢ˆÅ¡¸¸ ˜¸¸A ¡¸í ¨¸«¸Ä 2006-07 Ÿ¸½¿ 12.5 œÏ¢÷¸©¸÷¸
ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ¨¸«¸Ä 2007-08 Ÿ¸½¿ 9 œÏ¢÷¸©¸÷¸ œ¸£ ™]¸Ä ¢ˆÅ¡¸¸ Š¸¡¸¸
˜¸¸ A œ¸»¿]¸úŠ¸÷¸ Ÿ¸¸¥¸ ®¸½°¸ ˆÅ¸ ¢›¸«œ¸¸™›¸ ¢¨¸©¸½«¸ ³œ¸ ¬¸½ 18.0 œÏ¢÷¸©¸÷¸
¨¸¼¢Ö ˆ½Å ¬¸¸˜¿¸ œÏž¸¸¢¨¸÷¸ ˆÅ£›¸½ ¨¸¸¥¸¸ ˜¸¸A ÷¸˜¸¸¢œ¸, œÏ¸˜¸¢Ÿ¸ˆÅ ¬¸¸Ÿ¸¸›¸,
Ÿ¸š¡¸¨¸÷¸úÄ ¬¸¸Ÿ¸¸›¸ ‚¸¾£ „œ¸ž¸¸½Æ÷¸¸ ¬¸¸Ÿ¸¸›¸ ˆ½Å ®¸½°¸¸½¿ ›¸½ ¨¸«¸Ä 2007-08
ˆ½Å ™¸¾£¸›¸ 7.0 œÏ¢÷¸©¸÷¸, 8.9 œÏ¢÷¸©¸÷¸ ‚¸¾£ 6.1 œÏ¢÷¸©¸÷¸ ˆÅú
‚¨¸Ÿ¸¿™ˆÅ ¨¸¼¢Ö ™]¸Ä ˆÅú ˜¸úA
1.2.2 A positive feature during the year was the
growth in the contribution of agricultural sector
GDP, which has improved from 3.8 per cent in
2006-07 to 4.5 per cent in 2007-08, after a
slowdown experienced in the previous year.
Similarly, there has been a growth in the
contribution of trade, hotels, transport, storage
and communication sector from 11.8 per cent to
12.0 per cent. However, in construction sector,
the growth rate declined from 12.0 per cent
(2006-07) to 9.8 per cent (2007-08). There was
a similar deceleration in finance, insurance, real
estate, and business services sector.
1.2.3 In the industrial sector, the growth of real GDP
declined from 10.6 per cent in 2006-07 to 8.2
percent in 2007-08. Industrial Growth, in terms
of Index of Industrial Production (IIP), was
recorded at a lower level of 8.3 per cent in
2007-08 in comparison to 11.6 per cent in
2006-07 on account of slow growth in the
mining and electricity sectors. During the year,
the manufacturing sector recorded the lowest
growth in the last four years. It was recorded at
9 per cent during 2007-08 as compared to 12.5
per cent during 2006-07. The performance of
the capital goods sector was particularly
impressive with 18.0 per cent growth. However,
basic goods, intermediate goods and
consumable goods sectors recorded
decelerated growth of 7.0 per cent, 8.9 per cent
and 6.1 per cent, respectively during 2007-08.

9
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
1.2.4 ž¸¸£÷¸ Ÿ¸½¿, ˜¸¸½ˆÅ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ œ¸£ ‚¸š¸¸¢£÷¸ ©¸ú«¸Ä Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ Š¸÷¸
¨¸«¸Ä ˆÅú 6.6 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸
¤¸[õˆÅ£ 7.5 œÏ¢÷¸©¸÷¸ í¸½ Š¸ƒÄ ˜¸úA ˆºÅŽ œÏ¸˜¸¢Ÿ¸ˆÅ ‰¸¸Ô¸ ¨¸¬÷¸º‚¸½¿
‚¸¾£ ˆºÅŽ ¢›¸¢Ÿ¸Ä÷¸ „÷œ¸¸™¸½¿ ˆ½Å Ÿ¸»¥¡¸ Ÿ¸½¿ ¬¸¿÷¸º¥¸›¸ 2007 Ÿ¸½¿ Ÿ¸ºÍ¸¬œ¸€ú¢÷¸
ˆÅ¸ Ÿ¸¿™ œ¸”õ ]¸¸›¸¸ ™©¸¸Ä÷¸¸ í¾A ÷¸˜¸¸¢œ¸, ¤¸¸™ Ÿ¸½¿ Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ˆÅ“¸½£ í¸½
Š¸ƒÄ ˜¸ú ‚¸¾£ Ÿ¸¸\¸Ä, 2008 Ÿ¸½¿ ¡¸í 8 œÏ¢÷¸©¸÷¸ œ¸£ œ¸íº¿\¸ Š¸ƒÄ ˜¸ú, ]¸¸½
Ÿ¸º‰¡¸ ‰¸¸Ô¸ œ¸™¸˜¸¸½¿Ä ‚¸¾£ ƒôš¸›¸ ˆ½Å ‚¿÷¸£¸Ä«’ïú¡¸ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ¤¸[õ¸½÷¸£ú œ¸£
‚¸œ¸»¢÷¸Ä œ¸®¸ ˆÅ¸ ™¤¸¸¨¸ ¤¸[õ ]¸¸›¸¸ œÏ¥¸¢®¸÷¸ ˆÅ£÷¸ú í¾A 2007-08 Ÿ¸½¿,
Ÿ¸º‰¡¸ ³œ¸ ¬¸½ 12 Ÿ¸™¸½¿/¬¸Ÿ¸»í¸½¿ ›¸½ ©¸ú«¸Ä ˜¸¸½ˆÅ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ
Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ˆÅ¸½ ‚¸Š¸½ ¤¸[õ¸¡¸¸A ¡¸½ Ÿ¸™½¿ \¸¸¨¸¥¸, Š¸½í»¿, ™»š¸, ˆÅ\\¸ú
ˆÅœ¸¸¬¸, v;Ld ykSg, ¢÷¸¥¸í›¸, ‰¸¥¸ú, ˆÅ¸½¡¸¥¸¸ [kuu, ‰¸¢›¸]¸
÷¸½¥¸, ‰¸¸Ô¸ ÷¸½¥¸, ‚¸š¸¸£ž¸»÷¸ ž¸¸£ú ‚ˆÅ¸¤¸Ä¢›¸ˆÅ £¬¸¸¡¸›¸ ‚¸¾£ š¸¸÷¸º‡¿
íÿ, ¢]¸›¸ˆÅ¸ ¢Ÿ¸¢ª÷¸ ž¸¸£ ˜¸¸½ˆÅ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ Ÿ¸½¿ ¥¸Š¸ž¸Š¸ 35
œÏ¢÷¸©¸÷¸ ˜¸¸ ‚¸¾£ ƒ›í¸½¿›¸½ ˜¸¸½ˆÅ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅŠ¸÷¸ Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ˆ½Å
¥¸Š¸ž¸Š¸ 82 œÏ¢÷¸©¸÷¸ ˆÅ¸ ¥¸½‰¸¸ ¢™¡¸¸ ˜¸¸A
1.2.5 ƒ¬¸ ¨¸«¸Ä ˆ½Å›Í ¬¸£ˆÅ¸£ ˆ½Å £¸]¸¬¨¸ ‹¸¸’½ ˆÅ¸ ‚›¸ºŸ¸¸›¸ 63,488 ˆÅ£¸½”õ
:i, ‚˜¸¨¸¸ ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ 1.4 œÏ¢÷¸©¸÷¸ œ¸£ ¢ˆÅ¡¸¸ Š¸¡¸¸
˜¸¸, ]¸¸½ 2006-07 Ÿ¸½¿ ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ ˆ½Å 1.5 œÏ¢÷¸©¸÷¸ ¬¸½ ˆÅŸ¸
˜¸¸A ¢Ÿ¸¢ª÷¸ ¬¸ˆÅ¥¸ £¸]¸ˆÅ¸½«¸ú¡¸ ‹¸¸’¸, ]¸¸½ 2006-07 Ÿ¸½¿ 5.6
œÏ¢÷¸©¸÷¸ ˜¸¸, ƒ¬¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ƒ¬¸Ÿ¸½¿ ˜¸¸½”õ¸ ¬¸¸ ¬¸ºš¸¸£ íº‚¸ ‚¸¾£ ¡¸í
¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ ˆ½Å 5.3 œÏ¢÷¸©¸÷¸ œ¸£ ‚¸ Š¸¡¸¸ ˜¸¸A ˆÅ£ £¸]¸¬¨¸
¢¨¸©¸½«¸ ³œ¸ ¬¸½ œÏ÷¡¸®¸ ˆÅ£ £¸]¸¬¨¸ Ÿ¸½¿ „÷œ¥¸¸¨¸÷¸ˆÅ÷¸¸ ›¸½ Ÿ¸º‰¡¸
£¸]¸ˆÅ¸½«¸ú¡¸ ¬¸¿ˆ½Å÷¸ˆÅ¸½¿ Ÿ¸½¿ ¬¸ºš¸¸£ ¬¸º¢¨¸š¸¸]¸›¸ˆÅ ¤¸›¸¸¡¸¸ ˜¸¸A ¬¸ˆÅ¥¸
‹¸£½¥¸» „÷œ¸¸™ ˆ½Å ‚›¸ºœ¸¸÷¸ Ÿ¸½¿ ¢Ÿ¸¢ª÷¸ ¤¸ˆÅ¸¡¸¸ ™½›¸™¸¢£¡¸¸¿ Ÿ¸¸\¸Ä,
2007 ‚¸¾£ 2008 ˆ½Å ‚¿÷¸ Ÿ¸½¿ ¨¸íú ‚˜¸¸Ä÷¸Ã (¬¸¿©¸¸½¢š¸÷¸ ‚›¸ºŸ¸¸›¸)
77.0 œÏ¢÷¸©¸÷¸ ˜¸¸A ƒ¬¸ ¨¸«¸Ä Ÿ¸½¿ £¸]¡¸ ¬¸£ˆÅ¸£ ˆÅú ™½›¸™¸¢£¡¸¸½¿ Ÿ¸½¿
¢Š¸£¸¨¸’ ™]¸Ä ˆÅú Š¸ƒÄ ˜¸ú, ÷¸˜¸¸¢œ¸, ¡¸í ˆ½Å›Í ¬¸£ˆÅ¸£ ˆÅú ¤¸ˆÅ¸¡¸¸
™½›¸™¸¢£¡¸¸½¿ Ÿ¸½¿ ¨¸¼¢Ö ¬¸½ ¬¸Ÿ¸¸¡¸¸½¢]¸÷¸ ˆÅú Š¸ƒÄ ˜¸úA ¬˜¸»¥¸ Ÿ¸ºÍ¸
(‡Ÿ¸.3) Ÿ¸½¿ ¬¸ºš¸¸£ ]¸¸£ú £í¸ ‚¸¾£ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ ¡¸í ‚œÏ¾¥¸,
2007 Ÿ¸½¿ ¨¸¸¢«¸ÄˆÅ ›¸ú¢÷¸Š¸÷¸ ¢¨¸¨¸£µ¸ Ÿ¸½¿ 17.0 - 17.5 œÏ¢÷¸©¸÷¸ ˆÅú
÷¸º¥¸›¸¸ Ÿ¸½¿ 20.8 œÏ¢÷¸©¸÷¸ œ¸£ ˜¸úA
1.2.6 ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸, ¢›¸¡¸¸Ä÷¸ ‡¨¸¿ ‚¸¡¸¸÷¸ ®¸½°¸ ˆÅ¸ ¢›¸«œ¸¸™›¸
‚\Ž¸ £í¸A ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆ½Å ‚›¸º¬¸¸£, ¢›¸¡¸¸Ä÷¸ ¨¸«¸Ä
2006-07 ˆ½Å ™¸¾£¸›¸ 128.1 ¢¤¸¢¥¸¡¸›¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£ ¬¸½ 23.7
œÏ¢÷¸©¸÷¸ ˆÅú œÏž¸¸¨¸ú ¨¸¼¢Ö ˆ½Å ¬¸¸˜¸, ¨¸«¸Ä 2007-08 Ÿ¸½¿ 158.5
10
Report on Trend and Progress of Housing in India, 2008
1.2.4 In India, the headline inflation based on the
Wholesale Price Index (WPI), increased to 7.5
per cent during the year 2007-08 as compared
to 6.6 per cent, last year. Moderations in the
price of some basic food articles and some
manufactured products reflect the softening of
the inflation in 2007. However, inflation
hardened subsequently to reach 8 per cent in
March 2008, which reflected tightening of
supply side pressures on key commodities and
surge in international fuel prices. In 2007-08
mainly 12 items/groups impelled the Headline
WPI inflation. They were rice, wheat, milk, raw
cotton, iron-ore, oilseeds, iron-ore, oil cakes,
coal mining, mineral oils, edible oils, basic heavy
inorganic chemicals and metals, with a
combined weight of about 35 per cent in the WPI
basket accounting for almost 82 per cent of WPI
inflation.
1.2.5 This year, the revenue deficit of the Central
Government estimated at Rs. 63,488 crore or 1.4
per cent of the GDP was lower than 1.5 per cent
of GDP in 2006-07. The combined Gross Fiscal
Deficit (GFD), which was 5.6 per cent in 2006-07
improved to arrive at 5.3 per cent of GDP during
the year. The buoyancy in tax revenue, especially
direct tax revenues, facilitated improvement in
key fiscal indicators. The combined outstanding
liabilities in proportion to GDP were the same at
the end of March 2007 and 2008 (RE) i.e., 77 per
cent. During the year, a decline in the liabilities of
the State Government was recorded; however
the same was offset by the increase in the
outstanding liabilities of the Central
Government. The Broad Money (M3) continued
to improve with 20.8 per cent as on March 31,
2008 as compared to 17.0-17.5 per cent set out
in the Annual Policy Statement in April 2007.
1.2.6 During 2007-08, the export and import sector
performed well. As per the Reserve Bank of India
(RBI), exports reached US $ 158.5 billion during
2007-08 with an impressive growth of 23.7 per
cent from US $ 128.1 billion during 2006-07.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
¢¤¸¢¥¸¡¸›¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£ œ¸£ œ¸íº¿\¸ Š¸¡¸¸A ‚¸¡¸¸÷¸ Ÿ¸½¿ ž¸ú ¨¸¼¢Ö í¸½›¸ú
˜¸ú ‚¸¾£ ¡¸í ¨¸¼¢Ö (2006-07 Ÿ¸½¿) 191.2 ¢¤¸¢¥¸¡¸›¸ ‚Ÿ¸£úˆÅú
”¸Á¥¸£ ¬¸½ 2007-08 Ÿ¸½)¿ 248.5 ¢¤¸¢¥¸¡¸›¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£ œ¸£ ‚¸
Š¸ƒÄ ˜¸úA
1.2.7 ž¸¸£÷¸ú¡¸ ¢¨¸î¸ ¤¸¸{¸¸£ ˆÅú ‚¸©¸¸ 2008-09 ˆ½Å ™¸¾£¸›¸ ¬¸º¨¡¸¢¬˜¸÷¸
£í›¸½ ˆÅú ˜¸úA ÷¸˜¸¸¢œ¸, Ÿ¸ºÍ¸ ¤¸¸{¸¸£ ˆÅú ™£¸½¿ Ÿ¸½¿ 2008-09 ˆÅú œÏ˜¸Ÿ¸
¢÷¸Ÿ¸¸íú ˆ½Å œÏ¸£Ÿž¸ Ÿ¸½¿ ¬¸¿÷¸º¥¸›¸ ™½‰¸¸ Š¸¡¸¸ ˜¸¸A ¨¸¸¢µ¸¢]¡¸ˆÅ œ¸½œ¸£ œ¸£
Ÿ¸¸\¸Ä, 2007 ˆ½Å ‚¿÷¸ Ÿ¸½¿ 11.33 œÏ¢÷¸©¸÷¸ ¬¸½ ‚Æ÷¸»¤¸£, 2007 ˆ½Å
‚¿÷¸ Ÿ¸½¿ ž¸¸¢£÷¸ ‚¸¾¬¸÷¸ ¤¸Ø¸ ™£ Ÿ¸½¿ ¢Š¸£¸¨¸’ ‚¸ Š¸ƒÄ ˜¸ú ‚¸¾£ ÷¸¤¸ ¡¸í
™£ 7.65 œÏ¢÷¸©¸÷¸ í¸½ Š¸ƒÄ ˜¸úA ÷¸˜¸¸¢œ¸, Ÿ¸¸\¸Ä, 2008 ˆ½Å ‚¿÷¸ ds
nkSjku ¡¸í 10.38 œÏ¢÷¸©¸÷¸ œ¸£ œ¸íº¿\¸ Š¸ƒÄ ˜¸úA ]¸Ÿ¸¸ ˆ½Å œÏŸ¸¸µ¸-
œ¸°¸¸½¿ œ¸£ ž¸¸¢£÷¸ ‚¸¾¬¸÷¸ ¤¸Ø¸ ™£ Ÿ¸½¿ ž¸ú Ÿ¸¸\¸Ä, 2008 ˆ½Å ‚¿÷¸ Ÿ¸½¿
10.00 œÏ¢÷¸©¸÷¸ ˆÅú ¨¸¼¢Ö íºƒÄ, ]¸¸½ œ¸»¨¸Ä÷¸Ÿ¸ Ÿ¸½¿ Ÿ¸¸\¸Ä, 2007 ˆ½Å ‚¿÷¸
Ÿ¸½¿ 10.75 œÏ¢÷¸©¸÷¸ ¬¸½ ¢Š¸£ˆÅ£ ‚Š¸¬÷¸, 2007 ˆ½Å œÏ¸£Ÿž¸ Ÿ¸½¿ 7.40
œÏ¢÷¸©¸÷¸ £í Š¸ƒÄ ˜¸úA
1.2.8 ¢¨¸™½©¸ú Ÿ¸ºÍ¸ ¢¨¸¢›¸Ÿ¸¡¸ ¤¸¸{¸¸£ Ÿ¸½¿ ž¸¸£÷¸ú¡¸ ›¸½ 2007-08 ˆ½Å ™¸¾£¸›¸
œÏ¢÷¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£ 39.26 - 43.15 :i, ˆÅú ª½µ¸ú Ÿ¸½¿ ™¸½
÷¸£œ¸€¸ ¬¸¿\¸¥¸›¸ œÏ™¢©¸Ä÷¸ ¢ˆÅ¡¸¸A ž¸¸£÷¸ú¡¸ :i;k ‚Š¸¬÷¸, 2007
Ÿ¸½¿ œÏ¢÷¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£ 41.58 :i, ¬¸½ ‹¸’ˆÅ£ ]¸º¥¸¸ƒÄ, 2007 Ÿ¸½¿
œÏ¢÷¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£ 40.43 :i, í¸½ Š¸¡¸¸ ˜¸¸A ¢¨¸™½©¸ú
¬¸¿¬˜¸¸Š¸÷¸ ¢›¸¨¸½©¸ ¤¸¢íœÏĨ¸¸í ˆÅ\\¸½ ÷¸½¥¸ ˆ½Å ¤¸[õ÷¸½ Ÿ¸»¥¡¸ ‚¸¾£ ÷¸½¥¸
Ç¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ”¸Á¥¸£ ˆÅú ž¸¸£ú Ÿ¸¸¿Š¸ ›¸½ „›¸ˆÅ¸½ ‹¸’÷¸½ Ÿ¸»¥¡¸ ˆÅ¸ ¥¸½‰¸¸
¢™¡¸¸A ƒ¬¸ˆ½Å ¤¸¸™, ]¸›¸¨¸£ú, 2008 ÷¸ˆÅ œÏ¢÷¸ ‚Ÿ¸£úˆÅú ”¸Á¥¸£
39.26-39.84 :i, ˆÅú ª½µ¸ú Ÿ¸½¿ Ÿ¸»¥¡¸ ¨¸¼¢Ö íºƒÄ ˜¸úA
1.3 ‚¸¢˜¸ÄˆÅ ¢¨¸ˆÅ¸¬¸ ‡¨¸¿ ‚¸¨¸¸¬¸
1.3.1 ‚¸¨¸¸¬¸ ˆÅ¸½ £¸«’ï ˆ½Å ‚¸¢˜¸ÄˆÅ ¢¨¸ˆÅ¸¬¸ ˆÅ¸ ƒ¿]¸›¸ Ÿ¸¸›¸¸ ]¸¸÷¸¸ í¾A
‚¸¨¸¸¬¸ú¡¸ ‡¨¸¿ ž¸» ¬¸¿œ¸™¸ ˆ½Å¨¸¥¸ ˆ¼Å¢«¸ ¬¸½ ‚Š¸¥¸¸ ™»¬¸£¸ ¬¸¤¸¬¸½
¢¨¸©¸¸¥¸ ¢›¸¡¸¸½Æ÷¸¸ í¸½›¸½ ¬¸½, ž¸¸£÷¸ú¡¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ ˆ½Å œÏŸ¸º‰¸ \¸¸¥¸ˆÅ¸½¿
Ÿ¸½¿ ¬¸½ ‡ˆÅ í¾A ž¸¸£÷¸ (™»¬¸£¸ ¬¸¨¸¸Ä¢š¸ˆÅ ]¸›¸¬¸¿‰¡¸¸ ¨¸¸¥¸¸ ™½©¸) Ÿ¸½¿
‚¸¨¸¸¬¸ ˆÅ¸½ ‚¸¢˜¸ÄˆÅ ¢¨¸ˆÅ¸¬¸ ˆÅ¸ ¬¸¤¸¬¸½ ‚¸¨¸©¡¸ˆÅ ¬¸¿‹¸’ˆÅ Ÿ¸¸›¸¸
]¸¸÷¸¸ í¾ ‚¸¾£ ƒ¬¸›¸½ ™½©¸ ˆ½Å ¬¸ˆÅ¥¸ ‹¸£½¥¸» „÷œ¸¸™ Ÿ¸½¿ ¥¸Š¸ž¸Š¸
5 œÏ¢÷¸©¸÷¸ ˆÅ¸ ‚¿©¸™¸›¸ ¢ˆÅ¡¸¸A
11
Report on Trend and Progress of Housing in India, 2008
Imports too have increased from US $ 191.2
billion (2006-07) to US $ 248.5 billion (2007-08).
1.2.7 Indian financial market was expected to remain
orderly during 2008-09. However, moderation
was observed at beginning of the first quarter of
2008-09 in money market rates. There was a
decline in the weighted average discount rate
(WADR) on commercial paper (CP) from 11.33
per cent on during March, 2007 to 7.65 per cent
at end-October 2007, however, by end-March
2008, it reached 10.38 per cent. The WADR on
certificates of deposit (CDs) also increased to
10.00 per cent at end March, 2008, which had
earlier declined from 10.75 per cent at end-
March 2007 to 7.40 per cent at the beginning of
August 2007.
1.2.8 In foreign exchange market, the Indian rupee
exhibited two way movements in the range of
Rs. 39.26 to 43.15 per US $ during 2007-08. The
Indian rupee depreciated to Rs. 41.58 per US $ in
August, 2007 from Rs. 40.43 per US $ in July,
2007. FIIs outflows, rising crude oil prices and
heavy dollar demand by oil companies
accounted to its depreciating value. Thereafter, it
appreciated in a range of Rs. 39.26 to 39.84 per
US $ in January, 2008.
1.3 Economic developments and
housing
1.3.1 Housing is termed as the nation’s engine of
economic growth. Housing and real estate sector
being the second largest employer next only to
agriculture is one of the key drivers of the Indian
economy. Housing in India (the second highest
populous country) presumes to be the most
important component in the economic
development and contributed around 5 per cent
to the GDP of the country.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
1.3.2 ©¸í£úˆÅ£µ¸ Ÿ¸½¿ ¨¸¼¢Ö ˆ½Å ¬¸¸˜¸ ÷¸½{¸ú ¬¸½ ¤¸[õ÷¸ú ]¸›¸¬¸¿‰¡¸¸ ‚¸¨¸¸¬¸ ˆ½Å
¢¥¸‡ ž¸¸£ú Ÿ¸¸¿Š¸ œ¸¾™¸ ˆÅ£ £íú í¾A Š¡¸¸£í¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ˆ½Å
œÏ¸£Ÿž¸ Ÿ¸½¿ ©¸í£ú ®¸½°¸¸½¿ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅŸ¸ú ˆÅ¸ ‚›¸ºŸ¸¸›¸ 24.71
¢Ÿ¸¢¥¸¡¸›¸ œ¸£ ¥¸¸¡¸¸ Š¸¡¸¸ ˜¸¸ ¢]¸¬¸Ÿ¸½¿ ¥¸Š¸ž¸Š¸ 99 œÏ¢÷¸©¸÷¸ ˆÅŸ¸ú
‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ‚¸¾£ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ˜¸úA
ž¸¸£÷¸ ˆÅú ©¸í£ú ‚¸¤¸¸™ú ]¸¸½ Š¸¿™ú ¤¸¢¬÷¸¡¸¸½¿ Ÿ¸½¿ £í÷¸ú í¾, ¥¸Š¸ž¸Š¸
15.2 œÏ¢÷¸©¸÷¸ (‚›¸ºŸ¸¸¢›¸÷¸ ³œ¸ ¬¸½ 42.8 ¢Ÿ¸¢¥¸¡¸›¸ ¥¸¸½Š¸) ‚¸¾£
‚›¸ºŸ¸¸¢›¸÷¸ ³œ¸ ¬¸½ 81 ¢Ÿ¸¢¥¸¡¸›¸ ¥¸¸½Š¸¸½¿ ˆ½Å ¬¸¸˜¸ ‡ˆÅ ˆÅŸ¸£½ ˆÅú
‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒÄ Ÿ¸½¿ 35 œÏ¢÷¸©¸÷¸ ©¸í£ú œ¸¢£¨¸¸£ £í÷¸½ íÿ ‚¸¾£ ƒ›íì
Ÿ¸½¿ $¸£ú¤¸ú £½‰¸¸ ¬¸½ ›¸ú\¸½ £í £íú ˆºÅ¥¸ ‚¸¤¸¸™ú 25.7 œÏ¢÷¸©¸÷¸ í¾A
í¸¥¸ íú ˆ½Å ¨¸«¸¸½¿Ä Ÿ¸½¿ ¢©¸®¸¸ ‚¸¾£ £½¸{¸Š¸¸£ ˆ½Å ®¸½°¸ Ÿ¸½¿, ¢¨¸©¸½«¸ :i ¬¸½
›¸Š¸£¸½¿ Ÿ¸½¿ ‚¢š¸ˆÅ ‚¨¸¬¸£¸½¿ ˆ½Å ¤¸[õ›¸½ ˆ½Å ˆÅ¸£µ¸ ©¸í£úˆÅ£µ¸ ÷¸ú¨Ï Š¸¢÷¸
¬¸½ ¤¸[õ¸ í¾A
1.3.3 ™¬¸¨¸ì ¡¸¸½]¸›¸¸ (2002-2007) ˆ½Å ‚š¸ú›¸, ¬¸£ˆÅ¸£ ›¸½ ©¸í£ú ®¸½°¸¸½¿
Ÿ¸¿½¿ ‚¸¨¸¸¬¸ ¢¨¸÷¸£µ¸ ˆÅ¸ „œ¸¸¡¸÷¸¿°¸ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ¬¸¿¬˜¸¸Š¸÷¸
„œ¸¸¡¸÷¸¿°¸ ˆÅú œ¸í¥¸ ˆÅú ˜¸úA ¬¸¸˜¸ íú, ¢¨¸š¸¸¡¸ú „œ¸¸¡¸¸½¿ ˆ½Å ¬¸¸˜¸ ]¸º”õú
£¸]¸ˆÅ¸½«¸ú¡¸ ¢£¡¸¸¡¸÷¸½¿ ž¸ú ‚¸¨¸¸¬¸ Ÿ¸½¿ ¤¸[õ÷¸½ ¢›¸¨¸½©¸ ˆÅ¸½ œÏ¸½÷¬¸¸¢í÷¸
ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¸£Ÿž¸ ˆÅú Š¸ƒÄ ˜¸úA 10¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ˆ½Å
‚š¸ú›¸, ¬¸£ˆÅ¸£ ›¸½ £¸]¡¸ ‚¢ž¸ˆÅ£µ¸¸½¿ ‚¸¾£ ¢›¸]¸ú ®¸½°¸ ׸£¸
‚¸¨¸¸¬¸ú¡¸ ¢¨¸÷¸£µ¸ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ‚œ¸½¢®¸÷¸ ¬¸¿¬˜¸¸Š¸÷¸ ¬¸ºš¸¸£¸½¿ ‚¸¾£
¢¨¸š¸¸¡¸ú „œ¸¸¡¸ œÏ¸£Ÿž¸ ˆÅ£›¸½ Ÿ¸½¿ £¸]¡¸ ¬¸£ˆÅ¸£ ˆÅ¸½ ¬¸º¢¨¸š¸¸ ™½›¸½ œ¸£
‚¸¾£ ©¸í£ú ©¸¸½¢š¸÷¸ ž¸»¢Ÿ¸ ˆ½Å ¤¸¸{¸¸£ œ¸¾ˆ½Å]¸ ˆÅ¸½ ¥¸¸›¸½ ˆÅú œÏ¢ÇÅ¡¸¸ ÷¸½{¸
ˆÅ£›¸½ œ¸£ š¡¸¸›¸ ¬¸¿ˆ½Å¢›Í÷¸ ˆÅ£÷¸ú í¾ A „¬¸¬¸½ ž¸ú ¢ž¸››¸, ¬¸£ˆÅ¸£ ›¸½
2 ¢Ÿ¸¢¥¸¡¸›¸ ‚¸¨¸¸¬¸ú¡¸ ˆÅ¸¡¸ÄÇÅŸ¸ œ¸£ ¤¸¥¸ ¢™¡¸¸ ‚¸¾£ ¨¸¸¬÷¸¢¨¸ˆÅ
¥¸®¡¸ ˆÅ¸½ œÏ¸œ÷¸ ˆÅ£›¸½ ˆÅú ¢™©¸¸ Ÿ¸½¿ 35,00,000 ‚¸¨¸¸¬¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆÅ¸
lesfdr 1998&99 ls 2007&08 dh vof?k esa ¥¸®¡¸ ˜¸¸ ‚¸¾£
¢›¸¢Ÿ¸Ä÷¸ ˆÅú Š¸ƒÄ ˆºÅ¥¸ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸¿ 36,20,858 ˜¸ú¿A ƒ¬¸ˆ½Å
¬¸¸˜¸ íú, ¤¸¸¥Ÿ¸ú¢ˆÅ ‚Ÿ¤¸½”ˆÅ£ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚š¸ú›¸,
4,43,369 ƒˆÅ¸ƒ¡¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸¸˜¸Ä ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅú Š¸ƒÄ
˜¸ú A ž¸¸£÷¸ ¢›¸Ÿ¸¸Äµ¸ ˆÅ¸¡¸ÄÇÅŸ¸ ‡ˆÅ Ÿ¸í÷¨¸¸ˆÅ¸¿®¸ú ¬¸¿¡¸ºÆ÷¸ „œ¸ÇÅŸ¸,
¢]¸¬¸ˆÅ¸ ¥¸®¡¸ ŠÏ¸Ÿ¸úµ¸ ¤¸º¢›¸¡¸¸™ú [¸¿\¸½ Ÿ¸½¿ ¬¸ºš¸¸£ ˆÅ£›¸¸ ˜¸¸, ž¸ú 2005
Ÿ¸½¿ œÏ¸£Ÿž¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸A ‚¿¢÷¸Ÿ¸, ¢ˆÅ›÷¸º ¡¸íú ›¸íì, ]¸¨¸¸í£¥¸¸¥¸
›¸½í³ £¸«’ïú¡¸ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸ œÏ¸£Ÿž¸ ¢ˆÅ¡¸¸ Š¸¡¸¸
¢]¸¬¸ˆÅ¸ ¥¸®¡¸ ¢¨¸î¸ú¡¸ ³œ¸ ¬¸½ š¸¸£µ¸ú¡¸ ¬¸¢ŸŸ¸¢¥¸÷¸ ›¸Š¸£ ¤¸›¸¸›¸¸ ˜¸¸A
12
Report on Trend and Progress of Housing in India, 2008
1.3.2 Rapid population growth along with the growth
of urbanization is creating increasing demand for
housing. The estimated shortage of houses in
urban areas at the beginning of the eleventh
five-year plan was estimated at 24.71 million
which amount to about 99 per cent of the
shortage which is to Economically Weaker
Section (EWS) and Low Income Group (LIG)
categories. India's urban population living in
slum areas is about 15.2 per cent (approximately
42.8 million people) and 35 percent of the urban
household live in single room dwelling unit with
approximately 81 million people or 25.7 per cent
of the total population living below the poverty
line. The pace of urbanization is rampant
particularly during the recent years due to
growing opportunities in cities in the field of
education and employment.
1.3.3 Under the Tenth Plan (2002-2007), the
Government initiated institutional mechanisms
to augment the housing delivery in urban areas.
Also, fiscal concessions coupled with legislative
measures have been initiated to encourage
increased investments in housing. Under the
10th Five Year Plan, the focus is on facilitating
the state governments to bring in the required
institutional reforms and introduce legislative
measures to enhance housing delivery by state
agencies and private sector. The Government
has also laid emphasis on the 2 Million Housing
Programme and managed to achieve the
physical targets under the scheme. Against a
cumulative target of 35,00,000 units a total of
36,20,858 dwelling units were built during to
period 1998-99 to 2007-08. Also, financial
assistance for construction of 4,43,369 units
under the Valmiki Ambedkar Awas Yojna
(VAMBAY) scheme was sanctioned. Further, in
2005 the Bharat Nirman, Program, an ambitious
venture which aimed at improving the rural
infrastructure, was launched. Last but not the
least the Jawaharlal Nehru National Urban
Renewal Mission (JNNURM) was launched with a
goal to create financially sustainable
inclusive cities.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

1.3.4 The Bharat Nirman Program of Government of

1.3.4 ž¸¸£÷¸ ¬¸£ˆÅ¸£ ˆ½Å ž¸¸£÷¸ ¢›¸Ÿ¸¸Äµ¸ ˆÅ¸¡¸ÄÇÅŸ¸ ›¸½ 2007-08 ˆ½Å ™¸¾£¸›¸
India has made impressive progress during
œÏž¸¸¨¸ˆÅ¸£ú œÏŠ¸¢÷¸ ˆÅú í¾A ¨¸«¸Ä ˆ½Å œÏ÷¡¸½ˆÅ ¢™›¸, ‚œ¸›¸ú \¸¸¥¸» Š¸¢÷¸ ˆ½Å 2007-08. With its current pace, on each day of
¬¸¸˜¸ 290 ¢›¸¨¸¸¬¸ ¬˜¸¸›¸¸½¿ ˆÅ¸½ œ¸ú›¸½ ˆÅ¸ œ¸¸›¸ú Ÿ¸ºí¾¡¸¸ ˆÅ£¸¡¸¸ Š¸¡¸¸ ‚¸¾£ the year, 290 habitations were provided with
drinking water and 17 habitations were
17 ¢›¸¨¸¸¬¸ ¬˜¸¸›¸¸½¿ ˆÅ¸½ œ¸ÆˆÅú ¬¸”õˆÅ¸½¿ ¬¸½ ]¸¸½”õ ¢™¡¸¸ Š¸¡¸¸ ˜¸¸A ¨¸«¸Ä ˆ½Å connected through an all weather road. On each
œÏ÷¡¸½ˆÅ ¢™›¸, 52 Š¸¸¿¨¸¸½¿ ˆÅ¸½ ’½¥¸úœ¸€¸½›¸ ¢™‡ Š¸‡ ˜¸½ ‚¸¾£ 42 Š¸¸¿¨¸¸½¿ Ÿ¸½¿ day of the year, 52 villages are provided with
telephones and 42 villages are electrified. On
¢¤¸]¸¥¸ú œ¸íº¿\¸¸ƒÄ Š¸ÃƒÄ ˜¸úA ¨¸«¸Ä ˆ½Å œÏ÷¡¸½ˆÅ ¢™›¸ 4,113 ŠÏ¸Ÿ¸úµ¸ Ÿ¸ˆÅ¸›¸
each day of the year, 4,113 rural houses are
œ¸»£½ ¢ˆÅ‡ Š¸‡ ˜¸½A ž¸¸£÷¸ ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ („œ¸»¨¸úÄ ®¸½°¸ú¡¸ ¬¸¿‹¸’ˆÅ completed. For Bharat Nirman, Rs. 31,280 crore
¬¸¢í÷¸) 31,280 ˆÅ£¸½”õ :i, ¨¸«¸Ä 2007-08 Ÿ¸½¿ 24,603 ˆÅ£¸½”õ has been allocated [including the North Eastern
Region (NER) component] as against Rs. 24,603
:i, ˆ½Å Ÿ¸ºˆÅ¸¤¸¥¸½ vkoafVr ¢ˆÅ‡ Š¸‡ ˜¸½A crore in 2007-08.

1.3.5 The Jawaharlal Nehru National Urban Renewal

1.3.5 ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ 'kq: ›¸¨¸ú›¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸ ž¸¸£÷¸
Mission (JNNURM) is the largest initiative,
¬¸£ˆÅ¸£ ׸£¸ 2005-06 Ÿ¸½¿ 'kq: ˆÅú Š¸ƒÄ ‡ˆÅ ¢¨¸©¸¸¥¸÷¸Ÿ¸ œ¸í¥¸ í¾, introduced by the Government of India in 2005-
]¸¸½ ¬¸œ¸€¸ƒÄ, Ÿ¸¥¸-]¸¥¸ ¨¡¸¨¸¬˜¸¸, ˆ»Å”õ¸-ˆÅ\¸£¸ œÏ¤¸¿š¸›¸, ¬¸”õˆÅ 06, to address the problems of infrastructure
projects relating to water supply including
œÏ¤¸¿š¸›¸, ›¸Š¸£ œ¸¢£¨¸í›¸, œ¸º£¸›¸½ ›¸Š¸£¸½¿ ˆ½Å ®¸½°¸ ˆÅ¸ œ¸º›¸¢¨¸ÄˆÅ¸¬¸, Š¸¿™ú- sanitation, sewerage, solid waste management,
¤¸¬÷¸ú ¬¸ºš¸¸£, œ¸º›¸¨¸¸Ä¬¸ œ¸¡¸¸Ä¨¸£µ¸ ¬¸ºš¸¸£ ‚¸¾£ ¬¸¸Ÿ¸º™¸¢¡¸ˆÅ r o a d m a n a g e m e n t , u r b a n t ra n s p o r t ,
redevelopment of old city areas, slum
©¸¸¾\¸¸¥¸¡¸ ‚¸¾£ ¬¸Ÿ¸¸]¸ ˆ½Å ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ÷¸˜¸¸ ‚¥œ¸
improvement, rehabilitation, environmental
‚¸¡¸¨¸Š¸Ä ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ Ÿ¸»¥¡¸¸½¿ œ¸£ ‚¸¨¸¸¬¸ ]¸¾¬¸ú œÏ¸˜¸¢Ÿ¸ˆÅ improvement and basic services such as
¬¸º¢¨¸š¸¸‚¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ‚¸š¸¸¢£ˆÅ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆÅú ¬¸Ÿ¸¬¡¸¸‚¸½¿ ˆÅ¸ community toilets and housing at affordable
prices for economically weaker sections and low-
¬¸Ÿ¸¸š¸¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¸£Ÿž¸ ˆÅú Š¸ƒÄ ˜¸úA income group of the society.

1.3.6 The major objective of planned economic

1.3.6 ž¸¸£÷¸ Ÿ¸½¿, ¢›¸¡¸¸½¢]¸÷¸ ‚¸¢˜¸ÄˆÅ ¢¨¸ˆÅ¸¬¸ ˆÅ¸ Ÿ¸º‰¡¸ „Ó½©¡¸ $¸£ú¤¸ú ™»£
development in India has been the removal of
ˆÅ£›¸¸ ‚¸¾£ ™½©¸ ˆ½Å ›¸¸Š¸¢£ˆÅ¸½¿ ˆÅ¸ ]¸ú¨¸›¸-¬÷¸£ ¬¸ºš¸¸£›¸¸ £í¸ í¾A poverty and improving the standard of living of
¡¸í ž¸¥¸ú-ž¸¸¿¢÷¸ ¬¨¸úˆÅ¸£ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ ¢ˆÅ $¸£ú¤¸ú ˆÅ¸ œÏž¸¸¨¸ú its citizens. It is well recognized that poverty can
only be eradicated effectively by the active
„›Ÿ¸»¥¸›¸, ˆ½Å¨¸¥¸ ™½©¸ ˆÅú ¨¸¼¢Ö ‚¸¾£ ¢¨¸ˆÅ¸¬¸ œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ $¸£ú¤¸¸½¿ ˆ ú involvement of the poor in the growth and
¬¸¢ÇÅ¡¸ ¬¸¿¤¸Ö÷¸¸ ¬¸½ íú ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A ƒ¬¸ Ÿ¸º‰¡¸ „Ó½©¡¸ ˆ½Å development process of the country. With this
major objective a scheme named Indira Awas
¬¸¸˜¸ ‡ˆÅ ¡¸¸½]¸›¸¸ ƒ¿¢™£¸ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸ ›¸¸Ÿ¸ ¬¸½ ©¸º³ ˆÅú Š¸ƒÄ ˜¸úA
Yojana (IAY) launched with the primary
ƒ¬¸ˆÅ¸ œÏ¸˜¸¢Ÿ¸ˆÅ „Ó½©¡¸ ‚›¸º¬¸»¢\¸÷¸ ]¸¸¢÷¸¡¸¸½¿/‚›¸º¬¸»¢\¸÷¸ ]¸›¸ objective to provide grant for construction of
]¸¸¢÷¸¡¸¸½¿, Ÿ¸ºÆ÷¸ íº‡ ¤¸¿š¸º‚¸ Ÿ¸{¸™»£¸½¿ ‚¸¾£ $¸¾£-‚.]¸¸./‚.]¸.]¸¸., houses to members of Scheduled
Castes/Scheduled Tribes, freed bonded
$¸£ú¤¸ú £½‰¸¸ ¬¸½ ›¸ú\¸½ ˆ½Å ŠÏ¸Ÿ¸úµ¸ $¸£ú¤¸¸½¿ ˆ½Å ¢¥¸‡ Ÿ¸ˆÅ¸›¸ ¤¸›¸¸›¸½ í½÷¸º labourers and also to non-SC/ST rural poor
‚›¸º™¸›¸ œÏ™¸›¸ ˆÅ£›¸¸ í¾A 60 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¥¸®¡¸ ˆ½Å Ÿ¸ºˆÅ¸¤¸¥¸½ below the poverty line. Against a target of 60
lakh houses, 41.13 lakh houses have been
41.13 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸ ¢™¬¸Ÿ¤¸£, 2007 ÷¸ˆÅ ¤¸›¸¸‡ ]¸¸ \¸ºˆ½Å íÿ ‚¸¾£
constructed up to December 2007, and the
¬¸¿\¸¡¸ú ¬¸¿‰¡¸¸ Ÿ¸¸\¸Ä, 2008 ˆ½Å ‚¿÷¸ ÷¸ˆÅ 51.77 ¥¸¸‰¸ œ¸£ cumulative number is estimated at 51.77 lakh
‚›¸ºŸ¸¸¢›¸÷¸ í¾A houses by the end of March, 2008.

13
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
1.4 ž¸¸£÷¸ Ÿ¸½ ¿ ¬¸¿¬˜¸¸Š¸÷¸ ¢¨¸î¸œ¸¸½«¸µ¸
1.4.1 ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ Ÿ¸½¿ 80 ˆ½Å ™©¸ˆÅ ÷¸ˆÅ ‚›¸¸¾œ¸\¸¸¢£ˆÅ ¬¸¿¿¬¸¸š¸›¸¸½¿ ˆÅú
œÏ¤¸¥¸÷¸¸ FkhA ‚¸¨¸¸¬¸ †µ¸ ¥¸½›¸½ ¨¸¸¥¸½ ˆºÅŽ †µ¸™¸÷¸¸ íú ˜¸½, ¢]¸›¸Ÿ¸½¿
ž¸¸£÷¸ú¡¸ ]¸ú¨¸›¸ ¤¸úŸ¸¸ ¢›¸Š¸Ÿ¸, ‚¸¨¸¸¬¸ ‚¸¾£ ›¸Š¸£ ¢¨¸ˆÅ¸¬¸ ¢›¸Š¸Ÿ¸
(íº”ˆÅ¸½), ‚¸¨¸¸¬¸ ¢¨¸ˆÅ¸¬¸ ¢¨¸î¸ ¢›¸Š¸Ÿ¸ (‡\¸”ú‡œ¸€¬¸ú), ©¸ú«¸Ä
¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¢Ÿ¸¢÷¸¡¸¸¿ ©¸¸¢Ÿ¸¥¸ ˜¸ì ‚¸¾£ ƒ›¸ˆ½Å œ¸¸¬¸ ž¸ú
‚¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ ˆ½Å ¢¥¸‡ ˆÅ¸½ƒÄ ¢¨¸©¸½«¸ ¬¸í¸¡¸÷¸¸ Ÿ¸¸¾]¸»™ ›¸íì Fkh
Ÿ¸º‰¡¸ ¥¸®¡¸ ¢¨¸©¸½«¸ ³œ¸ ¬¸½ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ¨¸Š¸Ä ˆ½Å
‚¸¨¸¸¬¸ú¡¸/œÏ¨¸¸¬¸ú ]¸›¸÷¸¸ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ¤¸]¸’ú¡¸ ‚¸¤¸¿’›¸ ˆ½Å
Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ‚¸¨¸¸¬¸ ®¸½°¸ ˆ½Å ¢¥¸‡ ¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸½ œ¸í¿º\¸¸›¸›¸¸ ˜¸¸A
‚¸¨¸¸¬¸ ¢¨¸î¸ „Ô¸¸½Š¸ ¢œ¸Ž¥¸½ ˆºÅŽ½ˆÅ ¨¸«¸¸½¿Ä Ÿ¸½¿ ‚÷¡¸¢š¸ˆÅ ¢¨¸ˆÅ¢¬¸÷¸
íº‚¸ í¾A ƒ¬¸ ˆÅ¸£µ¸ ¬¸½ ¡¸í í¾ ¢ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ „Ô¸¸½Š¸ ‚¸]¸ ¤¸íº÷¸ íú
œÏ¢÷¸¡¸¸½Š¸ú í¾, „š¸¸£ ™½›¸½ ˆÅú ™£½¿ ¬¸ž¸ú ¬¸Ÿ¸¡¸ ¬¸½ ˆÅŸ¸ íÿ ‚¸¾£ †µ¸™¸÷¸¸
ŠÏ¸íˆÅ¸½¿ ˆÅ¸½ ‚¸ˆÅ«¸ÄˆÅ œ¸¾ˆ½Å]¸ œ¸½©¸ ˆÅ£ £í½ íÿA
1.4.2 £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆÅú ‡ˆÅ ¬¸¿œ¸»µ¸Ä
¬¨¸¸¢Ÿ¸÷¨¸¸š¸ú›¸ ¬¸¿¬˜¸¸ ˆ½Å ³œ¸ Ÿ¸½¿ ¬˜¸¸›¸ú¡¸ ‚¸¾£ ®¸½°¸ú¡¸, ™¸½›¸¸½¿ ¬÷¸£¸½¿
œ¸£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ¬¸¿¨¸š¸Ä›¸¸˜¸Ä ‡ˆÅ œÏš¸¸›¸ ‚¢ž¸ˆÅ£µ¸
ˆ½Å :i Ÿ¸½¿ œ¸¢£\¸¸¢¥¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚¸¾£ ‡½¬¸½ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½
¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ ‡¨¸¿ „›¸¬¸½ ¬¸¿¤¸¿¢š¸÷¸ Ÿ¸¸Ÿ¸¥¸¸½¿ ¬¸½ œÏ¸¬¸¿¢Š¸ˆÅ ‚›¡¸
¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ 1988 Ÿ¸½¿ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸
˜¸¸ A £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿, ¤¸ÿˆÅ¸½¿ ‚¸¾£
£¸]¡¸-¬÷¸£ ˆÅú ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¢Ÿ¸¢÷¸¡¸¸½¿ ˆ½Å ¢¥¸‡
‚œ¸›¸ú œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ ˆ½Å {¸¢£‡ ‚¸¨¸¸¬¸ ®¸½°¸ ˆÅ¸½ ¢›¸¢š¸¡¸¸¿ œÏ™¸›¸
ˆÅ£÷¸¸ í¾ ‚¸¾£ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅú œ¸¢£¢š¸ ˆ½Å ž¸ú÷¸£,
¬¸¿¬˜¸¸Š¸÷¸ †µ¸ ¬¸¿¢¨¸÷¸£µ¸ 43 ‚¸¨¸¸¬¸ ¢¨¸î¸ daifu;ksa ˆ½Å {¸¢£‡
¢ˆÅ¡¸¸ ]¸¸ £í¸ í¾A
1.4.3 ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ ™½©¸ Ÿ¸½¿ ¬¸¨¸¸Ä¢š¸ˆÅ ¤¸\¸÷¸ ¬¸¿ŠÏíµ¸ ˆÅ£›¸½ ¨¸¸¥¸½ íÿA
¤¸í¿÷¸ ¬¸½ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ Ÿ¸½¿½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅú Š¸¸¾µ¸ ¬¸¿¬˜¸¸‡¿
¬˜¸¸¢œ¸÷¸ íºƒÄ ˜¸ì ]¸¸½ ‚œ¸›¸½ Ÿ¸»¥¸ ¤¸ÿˆÅ ¬¸½ ˜¸¸½”õú ¬¸í¸¡¸÷¸¸ ‚˜¸¨¸¸ ¢í÷¸
ˆ½Å ¬¸¸˜¸ ¬¨¸÷¸¿°¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆ½Å ³œ¸ Ÿ¸½¿ œÏˆÅ¸¡¸Ä£÷¸ ˜¸ìA ‚¸¨¸¸¬¸ ¢¨¸î¸
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ¤¸¸{¸¸£ ©¸½¡¸£ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ¤¸íº÷¸
ˆÅŸ¸ í¾A ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ ‚¤¸ ¤¸¸{¸¸£ Ÿ¸½¿ œ¸¡¸¸Äœ÷¸ ©¸½¡¸£ œÏ¸œ÷¸ ˆÅ£
14
Report on Trend and Progress of Housing in India, 2008
1.4 Institutional Financing in India
1.4.1 The housing finance sector was dominated by
informal resources till the late eighties. There
were few lenders of housing loans which
included Life Insurance Corporation of India,
Housing and Urban Development Corporation
(HUDCO), Housing Development Finance
Corporation (HDFC), and Apex Cooperative
Housing Finance Societies (ACHFS) with no
particular support existing for the formal sector.
The main aim was to channelize resources to
housing sector through budgetary allocations
especially for Economic Weaker Section (EWS)
housing/ housing for migrated population. The
housing finance industry has grown robustly
over the last few years. This is due to the fact
that the housing finance industry is very
competitive today; lending rates are at an all-
time low and lenders are offering attractive
packages to customers.
1.4.2 The National Housing Bank (NHB) was
established in 1988, as a wholly owned
subsidiary of Reserve Bank of India (RBI) to
operate as a principal agency to promote
housing finance institutions both at local and
regional levels and to provide financial and other
support incidental to such institutions and for
matters connected therewith. The National
Housing Bank provides funds to housing sector
through its refinance scheme for banks, housing
finance companies and state level apex co-
operative housing finance societies. Under the
ambit of the NHB, institutional credit disbursals
are being made through 43 Housing Finance
Companies (HFCs).
1.4.3 Commercials banks are the largest mobilizers of
savings in the country. Several commercial banks
had set up housing financing subsidiaries which
functioned as independent units with support
from their parent bank. The market share of the
housing finance companies is less as compared
to commercial banks. Commercial banks are now
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

£í½ íÿ A ¨¸¼¢Ö Ÿ¸º‰¡¸ ³œ¸ ¬¸½ „›¸ˆ½Å¢¨¸©¸¸¥¸ ˆÅ¸¡¸Ä¬¸¿]¸¸¥¸ (›¸½’¨¸ˆÄÅ), gaining a larger share of market. The growth is
mainly attributed to their large network, access
‚¥œ¸ ¥¸¸Š¸÷¸ ˆ½Å ¢›¸®¸½œ¸¸½¿ ÷¸ˆÅ œ¸íº¿\¸›¸½ ˆ½Å ˆÅ¸£µ¸ ¬¸½ íºƒÄ Ÿ¸¸›¸ú ]¸¸
to low cost deposits, which have helped in
¬¸ˆÅ÷¸ú í¾A ¢]¸¬¸›¸½ ‚¥œ¸÷¸£ ¤¡¸¸]¸ ™£ œ¸£ Š¸¼í †µ¸ œÏ™¸›¸ ˆÅ£›¸½ Ÿ¸½¿ offering home loans at lower interest rates. This
¬¸í¸¡¸÷¸¸ ˆÅú í¾ A ¤¸™¥¸½ Ÿ¸½¿ ¡¸í ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ œÏž¸¸¢¨¸÷¸ in turn is affecting the housing finance
ˆÅ£ £í¸ í¾A ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ¤¸¸{¸¸£ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸ˆÅ¸¬¸ ¢¨¸î¸ companies. The housing finance companies'
market is dominated by large players such as
¢›¸Š¸Ÿ¸, ‡¥¸‚¸ƒÄ¬¸ú í¸„¢¬¸¿Š¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸¢Ÿ¸’½”, ˆ¾Å›¸¢œ¸€›¸ í¸½Ÿ¬¸,
HDFC, LIC Housing Finance Limited, Can Fin
™ú¨¸¸›¸ í¸„¢¬¸¿Š¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸¢Ÿ¸’½”, ¬¸º¿™£Ÿ¸Ã í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸, £½œ¸ˆÅ¸½ Homes, Dewan Housing Finance Limited,
í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸, Š¸¼í œ¸€¸ƒ›¸½¿¬¸ ¢¥¸¢Ÿ¸’½”, ƒ÷¡¸¸¢™ ]¸¾¬¸½ ¤¸”½¿ Sundram Home Finance, Repco Home Finance,
dkjksckfj;ksa ˆÅú œÏ¤¸¥¸÷¸¸ ˜¸úA GRUH Finance Limited etc.

1.4.4 The primary market has been emerging and

1.4.4 œÏ¸˜¸¢Ÿ¸ˆÅ ¤¸¸{¸¸£ „ž¸£÷¸¸ £í¸ í¾ ‚¸¾£ ¡¸í ¬¸Ÿ¸¸]¸ ˆ½Å ¬¸ž¸ú ¨¸Š¸¸½¿Ä, becoming more active through development of
new products and schemes to include all
¢¨¸©¸½«¸ :i ¬¸½ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ‚¸¾£ ¬¸¸Ÿ¸¸¢]¸ˆÅ ³ œ¸ ¬¸½ segments of the population, particularly the
¢œ¸Ž”õ½ ¨¸Š¸Ä ˆ½Å ¥¸¸½Š¸¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ›¸‡ „÷œ¸¸™¸½¿ ‚¸¾£ economically and socially backward classes.

¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ¢¨¸ˆÅ¸¬¸ ˆ½Å {¸¢£‡ ‚¢š¸ˆÅ ¬¸¢ÇÅ¡¸ ¤¸›¸ £í¸ í¾ A

1.5 Housing Investment and GDP

1.5 ‚¸¨¸¸¬¸ú¡¸ ¢›¸¨¸½©¸ ‚¸¾£ ¬¸ˆÅ¥¸ ™½©¸ú „÷œ¸¸™
1.5.1 ‚¸¨¸¸¬¸ ‚¸¾£ ¬¸ˆÅ¥¸ ™½©¸ú „÷œ¸¸™ ‚¿÷¸£-¬¸¿¤¸¿¢š¸÷¸ íÿ ‚¸¾£ ‡ˆÅ ™»¬¸£½ ˆ½Å 1.5.1 Housing and GDP are interlinked and contribute
to each others' growth, especially in countries
¢¨¸ˆÅ¸¬¸ Ÿ¸½¿ ‚¿©¸™¸›¸ ˆÅ£÷¸½ íÿ, ¢¨¸©¸½«¸ ³œ¸ ¬¸½ ž¸¸£÷¸ ]¸¾¬¸½ ™½©¸ Ÿ¸½,¿ ]¸¸½ ÷¸ú¨Ï
like India which is in the process of rapid
¢¨¸ˆÅ¸¬¸ ˆÅú œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ íÿA ‚¸¨¸¸¬¸ ‡ˆÅ ¢›¸µ¸¸Ä¡¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸ ‚™¸ ˆÅ£›¸½ ‚¸ development. Housing has come to assume a
Š¸¡¸¸ í¾, Æ¡¸¸½¢¿ ˆÅ ¡¸í ¬¸¸˜¸ÄˆÅ ³œ¸ ¬¸½ ™½©¸ ˆÅú ‚˜¸Ä¨¡¸¨¸¬˜¸¸ Ÿ¸½¿ ‚¸¾£ £¸«’ï crucial role as it contributes significantly to the
national economy and nation building. An
¢›¸Ÿ¸¸Äµ¸ Ÿ¸½¿ ‚¿©¸™¸›¸ ˆÅ£÷¸¸ í¾A ‚¸¨¸¸¬¸ ‡¨¸¿ ¢›¸Ÿ¸¸Äµ¸ Ÿ¸½¿ ˆÅ¸½ƒÄ ž¸ú ¢›¸¨¸½©¸
investment in housing and construction triggers
¢¨¸¢ž¸››¸ ®¸½°¸¸½¿ Ÿ¸½¿ ¢›¸¨¸½©¸ ˆÅú ‡ˆÅ ª¼‰¿ ¸¥¸¸ ˆÅ¸½ œÏ½¢£÷¸ ˆÅ£÷¸¸ í¾A ¬’ú¥¸, a series of investments in various sectors. From
¬¸úŸ¸½’¿ ]¸¾¬¸½ ž¸¸£ú „Ô¸¸½Š¸¸½,¿ œ¸½’¿ , œ¸€›¸úÄ\¸£ ‚¸¾£ ¡¸í¸¿ ÷¸ˆÅ ¢ˆÅ ¥¸‹¸º „Ô¸¸½Š¸ heavy industries like steel, cement to industries
]¸¾¬¸½ „Ô¸¸½Š¸¸½¿ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¤¸íº÷¸ ¬¸½ „Ô¸¸½Š¸¸½ ˆÅ¸½ œÏ÷¡¸®¸ ‡¨¸¿ ‚œÏ÷¡¸®¸ ³œ¸ ¬¸½ like paint, furniture and even to small scale
industries, housing affects many industries
œÏž¸¸¢¨¸÷¸ ˆÅ£÷¸¸ í¾ ‚¸¾£ ž¸¸£÷¸ú¡¸ ˆÅ¸¡¸Ä¤¸¥¸ ˆÅ¸ ¥¸Š¸ž¸Š¸ 16 œÏ¢÷¸©¸÷¸ directly and indirectly and approximately 16 per
¢›¸Ÿ¸¸Äµ¸ ˆÅ¸¡¸Ä Ÿ¸½¿ ¥¸Š¸¸ íº‚¸ í¾A cent, of Indian work force is engaged in
construction.

1.5.2 ‚¸¨¸¸¬¸ Ÿ¸½¿ ¢›¸¨¸½©¸ ¬¸ˆÅ¥¸ ™½©¸ú „÷œ¸¸™ ˆÅú ¨¸¼¢Ö Ÿ¸½¿ ‚¿©¸™¸›¸ ˆÅ£÷¸¸ 1.5.2 Investment in housing contributes to the growth
í¾, Æ¡¸¸½¿¢ˆÅ ‚¸¨¸¸¬¸ ˆ¼Å¢«¸ ˆ½Å ¤¸¸™ ™½©¸ Ÿ¸½¿ ™»¬¸£¸ ¢¨¸©¸¸¥¸÷¸Ÿ¸ in GDP as housing is the second largest
employment generator in the country after
£¸½{¸Š¸¸£ œÏ]¸›¸ˆÅ í¾A ˆ½Å›Íú¡¸ ¬¸¸¿¢‰¡¸ˆÅú¡¸ ¬¸¿Š¸“›¸ ˆ½Å ‚›¸ºŸ¸¸›¸ ˆ½Å
agriculture. As per the Central Statistical
‚›¸º¬¸¸£ ‚¸¨¸¸¬¸ ®¸½°¸ ›¸½ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸»¥¡¸¸½¿ œ¸£ 2003-04 Ÿ¸½¿ ž¸¸£÷¸ Organizations (CSO) estimate, the housing
ˆ½Å ¬¸ˆÅ¥¸ ™½©¸ú „÷œ¸¸™ ˆ½Å ¢¥¸‡ 4.5 œÏ¢÷¸©¸÷¸ ˆÅ¸ ‚¿©¸™¸›¸ ¢ˆÅ¡¸¸ sector contributed 4.5 per cent to India's Gross
Domestic Product (GDP) in 2003-04 at current
˜¸¸A ¨¸«¸Ä 2003-04 Ÿ¸½¿ ¬¸ˆÅ¥¸ ™½©¸ú „÷œ¸¸™ ˆ½Å ©¸í£ú ®¸½°¸ Ÿ¸½¿,
prices. The contribution of housing in urban
‚¸¨¸¸¬¸ ˆÅ¸ ‚¿©¸™¸›¸ 3.13 œÏ¢÷¸©¸÷¸ ˜¸¸A areas to the GDP was 3.13 per cent in 2003-04.

15
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
1.5.3 ¡¸í ‚¸©¸¸ ˆÅú ]¸¸÷¸ú í¾ ¢ˆÅ ¬¸ˆÅ¥¸ ™½©¸ú „÷œ¸¸™ Ÿ¸½¿ ‚¸¨¸¸¬¸ ˆÅ¸ ©¸½¡¸£
‚¸Š¸¸Ÿ¸ú ¨¸«¸¸½¿Ä Ÿ¸½¿ ˆÅ¸œ¸€ú …¿\¸¸ ]¸¸‡Š¸¸A ¬¸ˆÅ¥¸ ™½©¸ú „÷œ¸¸™ ˆ½Å
œÏ¢÷¸©¸÷¸ ˆ½Å :i Ÿ¸½¿ ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸ 2001 Ÿ¸½¿ 3.4 œÏ¢÷¸©¸÷¸ ¬¸½
2007 Ÿ¸½¿ ‚›¸ºŸ¸¸¢›¸÷¸ 7.25 œÏ¢÷¸©¸÷¸ í¸½ Š¸¡¸¸ ˜¸¸A ¬¸ˆÅ¥¸ ™½©¸ú
„÷œ¸¸™ ˆ½Å œÏ¢÷¸©¸÷¸ ˆ½Å :i Ÿ¸½¿ ¤¸¿š¸ˆÅ ˆÅ{¸Ä ¡¸»‡¬¸ (54 œÏ¢÷¸©¸÷¸)
‚¸¾£ ¡¸»ˆ½Å (57 œÏ¢÷¸©¸÷¸) ¬¸½ ˆÅíú ›¸ú\¸½ í¾A
1.5.4 ‚¸¨¸¸¬¸ú¡¸ ¬¸¿œ¸¢î¸ ¤¸¸{¸¸£ œÏŸ¸¸°¸¸ ˆ½Å ‚›¸º¬¸¸£ ž¸¸£÷¸ Ÿ¸½¿ ž¸» ¬¸¿œ¸™¸
¤¸¸{¸¸£ ˆ½Å ¥¸Š¸ž¿¸Š¸ 80 œÏ¢÷¸©¸÷¸ ˆÅ¸ ‚¿©¸™¸›¸ ˆÅ£÷¸¸ í¾ ‚¸¾£ ¨¸¸¢«¸ÄˆÅ
³œ¸ ¬¸½ 34 œÏ¢÷¸©¸÷¸ œ¸£ ¤¸[õ÷¸¸ £í¸ í¾A ž¸¸£÷¸ ˆÅ¸ ¬¸¿œ¸¢î¸ ¤¸¸{¸¸£
‰¸¿¢”÷¸ ˆÅú ‚¸½£ ¬¸½ ¬¸¿Š¸¢“÷¸ ˆÅú ‚¸½£ ¤¸[õ £í¸ í¾ ‚¸¾£ ¢¨¸™½©¸ú œÏ÷¡¸®¸
¢›¸¨¸½©¸ Ÿ¸½¿ ¢©¸¢˜¸¥¸÷¸¸ ˆ½Å ¬¸¸˜¸ ƒ¬¸ ®¸½°¸ ˆ½Å ¬¸¿¬˜¸¸›¸ ˆÅ£µ¸ ˆÅú
¬¸¿ž¸¸¨¸›¸¸ í¾A
1.5.5 11¨¸ì ¡¸¸½]¸›¸¸ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ œ¸£ ˆÅ¸¡¸ÄˆÅ£µ¸ ™¥¸ ˆÅú ¢¬¸œ¸€¸¢£©¸ ˆ½Å
‚›¸º¬¸¸£, 11¨¸ì ¡¸¸½]¸›¸¸ ˆ½Å œÏ¸£Ÿž¸ Ÿ¸½¿ ‚˜¸¸Ä÷¸Ã 2007 Ÿ¸½¿, ‚¸¨¸¸¬¸ú¡¸
ƒˆÅ¸ƒ¡¸¸½¿ ˆÅú ˆºÅ¥¸ ˆÅŸ¸ú 24.71 ¢Ÿ¸¢¥¸¡¸›¸ í¾A ¡¸¸½]¸›¸¸ ‚¨¸¢š¸
(2007-12) ˆ½Å ™¸¾£¸›¸ (¢œ¸Ž¥¸ú ˆÅŸ¸ú ¬¸¢í÷¸) ˆºÅ¥¸ ‚¸¨¸¸¬¸ú¡¸
ˆÅŸ¸ú 26.33 ¢Ÿ¸¢¥¸¡¸›¸ í¸½Š¸úA £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸,
2007 ˆÅ¸ ¥¸®¡¸ ¨¸í›¸ú¡¸ ™£¸½¿ œ¸£ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/‚¥œ¸
‚¸¡¸ ¨¸Š¸¸½¿Ä ‚¸¾£ ¬¸Ÿ¸¸]¸ ˆ½Å ‚›¡¸ ¨¸Š¸¸½¿Ä ˆÅ¸½ ‚¸¨¸¸¬¸ ‡¨¸¿ œÏ¸£¢Ÿž¸ˆÅ
¤¸º¢›¸¡¸¸™ú [¸¿\¸¸ œÏ™¸›¸ ˆÅ£›¸¸ í¾ A
(踸½÷¸ À www.planningcommission.gov.in)
16
Report on Trend and Progress of Housing in India, 2008
1.5.3 It is expected that the share of housing in GDP
would go up substantially in the coming years.
The share of outstanding housing loan as a
percentage of GDP has risen from 3.4 per cent in
2001 to 7.25 per cent in 2007 (estimated).
However, the mortgage debt as a percentage of
GDP is far below the US (54 per cent) and UK
(57 per cent).
1.5.4 Residential property market constitutes almost
80 per cent of the real estate market in India in
terms of volume and has been growing at 34 per
cent, annually. The property markets in India are
moving from fragmented to organized, and the
sector is likely to institutionalize with the
relaxation in Foreign Direct Investment.
1.5.5 As per the recommendation of the Working
Group on Housing for the 11th Plan, the total
shortage of dwelling units at the beginning of
11th Plan i.e. in 2007 is 24.71 million. The total
housing shortage during the Plan period (2007-
2012), including the backlog, will be 26.53
million. The National Urban Housing and Habitat
Policy-2007 aims at providing housing and other
basic infrastructure to Economically Weaker
Sections/Low Income Groups and other sections
of society at affordable rates.
(Source-www. planningcommission.gov.in)
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
‚š¡¸¸¡¸-2À ‚¸¨¸¸¬¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ Ÿ¸½¿ ›¸ú¢÷¸Š¸÷¸ ¢¨¸ˆÅ¸¬¸
Chapter 2: Policy Developments in
Housing and Housing Finance
2.1 ‚¸¨¸¸¬¸ú¡¸ ¬’¸ÁˆÅ - ‚¢š¸ž¸¸½Š¸ ‡¨¸¿ ˆÅŸ¸ú
2.1.1 ™½©¸ Ÿ¸½¿, ¢¨¸©¸½«¸ ³œ¸ ¬¸½ Ÿ¸š¡¸ ‚¸¡¸ ‚¸¾£ ‚¥œ¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä Ÿ¸½¿,
‚¸¨¸¸¬¸ú¡¸ ‚¸œ¸»¢÷¸Ä Ÿ¸½¿ ‚÷¡¸¸¨¸©¡¸ˆÅ ˆÅŸ¸ú í¾A ‚¸¨¸¸¬¸ú¡¸ ‚¸œ¸»¢÷¸Ä,
Ÿ¸º‰¡¸ ³œ¸ ¬¸½, œÏú¢Ÿ¸¡¸Ÿ¸ ¨¸Š¸Ä ˆ½Å œÏ¢÷¸ ¬¸¿ˆ½Å¢›Í÷¸ £íú í¾, ¢]¸¬¸ˆ½Å
œ¸¢£µ¸¸Ÿ¸¬¨¸³œ¸ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ Ÿ¸½¿ ˆÅŸ¸ú ‚¸ƒÄ í¾A ¡¸í œÏ÷¡¸¸©¸¸ ˆÅú
]¸¸÷¸ú í¾ ¢ˆÅ ¢›¸ˆÅ’ ž¸¢¨¸«¡¸ Ÿ¸½¿, ©¸í£ú ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ¢›¸£›÷¸£
œÏ¨¸¸¬¸ ‚¸¾£ ¥¸‹¸º œ¸¢£¨¸¸£¸½¿ Ÿ¸¿½ ¨¸¼¢Ö ˆ½Å ˆÅ¸£µ¸ ¤¸[õ½Š¸úA ¬¸Ÿ¸¬¡¸¸ „›¸
£¸]¡¸¸½¿ Ÿ¸½¿ ¤¸[õ £íú í¾, ]¸í¸¿ ]¸›¸¬¸¿‰¡¸¸ ‚÷¡¸¢š¸ˆÅ í¾ ‚˜¸¨¸¸ ]¸í¸¿
ˆÅ¸¡¸¸½¿Ä ˆ½Å ‚¨¸¬¸£ ¤¸íº÷¸ íÿA Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ¬¸¤¸¬¸½ ‚¢š¸ˆÅ ˆÅŸ¸ú „
œÏ™½©¸ Ÿ¸½¿ í¾ ‚¸¾£ ƒ¬¸ˆ½Å ¤¸¸™ Ÿ¸í¸£¸«’ï Ÿ¸½¿A 10¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸
ˆ½Å ‚¿¿÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ‡¨¸¿ ©¸í£ú $¸£ú¤¸ú „œ¸©¸Ÿ¸›¸ Ÿ¸¿°¸¸¥¸¡¸ ׸£¸
©¸í£ú ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ˆ½Å ‚¸ˆÅ¥¸›¸ ˆ½Å ¢¥¸‡, Š¸¢“÷¸ ÷¸ˆÅ›¸úˆÅú ™¥¸
ˆ½Å ‚›¸ºŸ¸¸›¸ ˆ½Å ‚›¸º¬¸¸£, ™½©¸ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆºÅ¥¸ ˆÅŸ¸ú 24.71
¢Ÿ¸¢¥¸¡¸›¸ í¾ ¨¸Š¸Ä-ÇÅŸ¸ ¬¸½ ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ¢›¸Ÿ›¸ œÏˆÅ¸£ ¬¸½ í¾ À-
ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú
Housing Shortage in India
¨¸Š¸Ä
Category
‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ¨¸Š¸Ä (ƒÄ”¤¥¡¸»‡¬¸) Economically Weaker Section (EWS)
¢›¸Ÿ›¸ ‚¸¡¸ ¬¸Ÿ¸»í (‡¥¸‚¸ƒÄ]¸ú) Low Income Group (LIG)
Ÿ¸š¡¸ ‚¸¡¸ ¬¸Ÿ¸»í Middle Income Group
„\\¸ ‚¸¡¸ ¬¸Ÿ¸»í High Income Group
¡¸¸½Š¸ Total
踸½÷¸ À ‚¸¨¸¸¬¸‡¨¸¿ ©¸í£ú $¸£ú¤¸ú „œ¸©¸Ÿ¸›¸ Ÿ¸¿°¸¸¥¸¡¸ (www.mhupa.gov.in)
Source: Ministry of Housing & Urban Poverty Alleviation (www.mhupa.gov.in)
17
Report on Trend and Progress of Housing in India, 2008
2.1 Housing Stock, Occupancy &
Shortage
2.1.1 There is an acute shortage of housing supply in
the country especially in the mid-income and
low-income categories. Housing supply has been
mainly concentrated towards the premium
category, resulting in a shortage of affordable
houses. It is expected that in the near future,
urban housing shortage will increase due to
continuous migration and rise in the nuclear
families. The problem is increasing in those
states where the population is huge or where the
job opportunities are enormous. The maximum
housing shortage is in Uttar Pradesh followed by
Maharashtra. According to the estimates made
by the Technical Group constituted by the
Ministry of Housing and Urban Poverty
Alleviation for assessment of the urban housing
shortage at the end of the 10th Five Year Plan,
the total housing shortage in the country is 24.71
million. The category wise housing shortage
was as follows:
(ƒˆÅ¸ƒ¡¸¸½¿ ˆÅú ¬¸‰¡¸¸ ¢Ÿ¸¢¥¸¡¸›¸ Ÿ¸½¿)
(Million No. of Units)
‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú (¡¸˜¸¸ 2007 Ÿ¸½¿)
Housing shortage (as on 2007)
21.78
2.89
0.04
24.71
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

11¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ‚˜¸¸Ä÷¸Ã 2007-2012 ˆ½Å ™¸¾£¸›¸ ‚¸¨¸¸¬¸ú¡¸ Housing shortage is likely to go up to 26.53 million
ˆÅŸ¸ú 26.53 ¢Ÿ¸¢¥¸¡¸›¸ ÷¸ˆÅ …œ¸£ ]¸¸›¸½ ˆÅú ¬¸¿ž¸¸¨¸›¸¸ í¾ ¢¨¸¨¸£µ¸ ¢›¸Ÿ›¸ during the Eleventh Five Year Plan i.e. 2007-2012
as detailed under:
œÏˆÅ¸£ í¾ À-

11¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ˆÅú ‚¨¸¢š¸ (2007-2012) ˆ½Å ™¸¾£¸›¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸
Housing requirement during 11th Plan period (2007-2012)
(ƒˆÅ¸ƒ¡¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ ¢Ÿ¸¢¥¸¡¸›¸ Ÿ¸½¿)
(Million No . of Units)

11¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ˆ½Å œÏ¸£Ÿž¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú Housing Shortage at the beginning of
24.71
11th Five Year Plan

œ¸¢£¨¸¸£¸½¿ ˆ½Å ‚¢÷¸¢£Æ÷¸ Addition to household 8.71

‚¸¨¸¸¬¸ú¡¸ ¬’¸ÁˆÅ ˆ½Å ‚¢÷¸¢£Æ÷¸ Addition to housing stock 7.27

ˆÅ\\¸½ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅ¸ „››¸¡¸›¸ Up-gradation of Kutcha houses 0.38
11¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ‚¨¸¢š¸ Ÿ¸½¿ ˆºÅ¥¸ ‚¸¨¸¸¬¸ú¡¸ Total housing requirement 26.53
‚¸¨¸©¡¸ˆÅ÷¸¸ during the 11th plan period fefy;u
踸½÷¸ À ‚¸¨¸¸¬¸ ‡¨¸¿ ©¸í£ú $¸£ú¤¸ú „œ¸©¸Ÿ¸›¸ Ÿ¸¿°¸¸¥¸¡¸ (www.mhupa.gov.in)

2.1.1 ‚¸¨¸¸¬¸ ‡¨¸¿ ©¸í£ú $¸£ú¤¸ú „œ¸©¸Ÿ¸›¸ Ÿ¸¿°¸¸¥¸¡¸ ˆ½Å ‚›¸º¬¸¸£, ©¸í£ú
®¸½°¸¸½¿ Ÿ¸½¿, Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆºÅ¥¸ {¸³£÷¸ ˆ½Å 97 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ‚˜¸¸Ä÷¸Ã
25.73 ¢Ÿ¸¢¥¸¡¸›¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆÅú {¸³£÷¸ $¸£ú¤¸¸½¿ ‚¸¾£ ‚¥œ¸ ‚¸¡¸ ¨¸Š¸Ä
ˆ½Å œ¸¢£¨¸¸£¸½¿ ˆ½Å ¢¥¸‡ í¾A ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ˆ½Å ¬¸Ÿœ¸»µ¸Ä ¬÷¸£ ¬¸½ ‚¥¸Š¸,
‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ˆ½Å Š¸ºµ¸¸÷Ÿ¸ˆÅ ‚¸¡¸¸Ÿ¸ ž¸ú íÿ - ]¸¾¬¸½ ¢ˆÅ, ‚¸£¢Ÿž¸ˆÅ
¬¸º‰¸-¬¸º¢¨¸š¸¸‚¸½¿ ˆÅ¸ ‚ž¸¸¨¸, ‹¸¢’¡¸¸ Ÿ¸ˆÅ¸›¸ ‚¸¾£ ‚÷¡¸¢š¸ˆÅ ž¸ú”õ
ƒ÷¡¸¸¢™A 2001 ˆÅú ]¸›¸Š¸µ¸›¸¸ ˆ½Å ‚¸¿ˆÅ”õ¸½¿ ˆ½Å ‚›¸º¬¸¸£, ž¸¸£÷¸ ˆÅú
©¸í£ú ‚¸¤¸¸™ú ˆÅ¸ ¥¸Š¸ž¸Š¸ 15 œÏ¢÷¸©¸÷¸ Š¸¿™ú-¤¸¢¬÷¸¡¸¸½¿ Ÿ¸½¿ £í÷¸¸
í¾A ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, £¸«’ïú¡¸ ]¸›¸¬¸¸¿¢‰¡¸ˆÅú¡¸ ¬¸¨¸½Ä®¸µ¸ ¬¸¿Š¸“›¸
(‡›¸‡¬¸‡¬¸‚¸½) ˆ½Å 58¨¸½¿ \¸ÇÅ ˆ½Å ‚›¸ºŸ¸¸›¸¸½¿ ˆ½Å ‚›¸º¬¸¸£ 39
œÏ¢÷¸©¸÷¸ œ¸¢£¨¸¸£ 20 ¨¸«¸¸½¿Ä ¬¸½ ž¸ú ‚¢š¸ˆÅ ¬¸Ÿ¸¡¸ ¬¸½ Š¸¿™ú ¤¸¬÷¸ú
œ¸º›¸¨¸¸Ä¬¸ Ÿ¸½¿ £í £í½ ˜¸½A ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ƒ¬¸ú ¬¸¿Š¸“›¸ ˆÅ¸ 61¨¸¸¿
\¸ÇÅ ™©¸¸Ä÷¸¸ í¾ ¢ˆÅ ]¸í¸¿ ž¸¸£÷¸ Ÿ¸½¿ $¸£ú¤¸¸½¿ ˆÅú ˆºÅ¥¸ ¬¸¿‰¡¸¸ Ÿ¸½¿ 18
¢Ÿ¸¢¥¸¡¸›¸ ¨¡¸¢Æ÷¸ ˆÅŸ¸ íº‡ íÿ, ¨¸íì ©¸í£ú $¸£ú¤¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ Ÿ¸½¿
1993-94 ¬¸½ 2004-05 ˆ½Å ™¸¾£¸›¸ 4.4 ¢Ÿ¸¢¥¸¡¸›¸ ¨¡¸¢Æ÷¸ ¤¸[õ½ íÿA
2.1.2 As per the Ministry of Housing & Urban Poverty
Alleviation, more than 97 per cent of the total
housing requirement i.e. 25.73 million units are
required for poor and low income segment
households in urban areas. Apart from the
absolute number of housing shortage, there is
also a qualitative dimension viz., lack of basic
amenities, poor quality of houses and
overcrowding etc. of housing shortage. As per
the census (2001) about 15 per cent of India's
urban population live in slums. Further, as per
the estimates of the 58th Round of NSSO, 39 per
cent of household were living in slums
settlements for more than 20 years. Further, the
61st Round of NSSO has shown that while there
has been a decline of 18 million persons in the
total number of poor in India, the number of
urban poor has risen by 4.4 million persons,
during 1993-94 to 2004-05.

2.2 ž¸¸£÷¸ Ÿ¸½¿ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ (‚œ¸€¸½”½Ä¤¸¥¸ í¸„¢¬¸¿Š¸) À 2.2 Affordable Housing in India: A
‡ˆÅ ¢›¸µ¸¸Ä¡¸ˆÅ œ¸¢£œÏ½®¡¸ A Crucial Perspective
2.2.1 £¸½’ú, ˆÅœ¸”õ¸ ‚¸¾£ ‚¸ª¡¸ Ÿ¸¸›¸¨¸ ˆÅú ÷¸ú›¸ Ÿ¸»¥¸ž¸»÷¸ ‚¸¨¸©¡¸ˆÅ÷¸¸‡¿ íÿ
2.2.1 There are three basic human needs viz. food,
¢›¸£¸œ¸™, ¬¸º£¢®¸÷¸ ‚¸¾£ ‚¸£¸Ÿ¸™¸¡¸ˆÅ ‚¸ª¡¸ ˆ½Å ¢¤¸›¸¸ Ÿ¸¸›¸¨¸ ]¸ú¨¸›¸
clothing and shelter. The life of a human being

18
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
ˆÅú ˆÅ¥œ¸›¸¸ ›¸íì ˆÅú ]¸¸ ¬¸ˆÅ÷¸ú í¾A ‚¸ª¡¸ ˆÅú {¸³£÷¸ Ÿ¸»¥¸ž¸»÷¸
{¸³£÷¸¸½¿ Ÿ¸½¿ ¬¸½ ‡ˆÅ í¾, ¢]¸¬¸ œ¸£ ¬¸¨¸ÄœÏ˜¸Ÿ¸ š¡¸¸›¸ ¢™¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A
2.2.2 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ‚¸©\¸¡¸Ä]¸›¸ˆÅ ¬¸¿ž¸¸¨¡¸÷¸¸‡¿ íÿ ‚¸¾£ ™½©¸ ˆ½Å
‚¸¢˜¸ÄˆÅ ‡¨¸¿ ¬¸¸Ÿ¸¸¢]¸ˆÅ ¢¨¸ˆÅ¸¬¸ œ¸£ „›¸ˆÅ¸ ¬¸ˆÅ¸£¸÷Ÿ¸ˆÅ ¬¸¿‹¸¸÷¸
œ¸”õ÷¸¸ í¾A ÷¸˜¸¸¢œ¸, ¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸’ ©¸í£ú ®¸½°¸ ˆ½Å
¢¨¸¢ž¸››¸ œ¸í¥¸º‚¸½¿ œ¸£ „÷œ¸››¸ í¸½ £íú \¸º›¸¸¾¢÷¸¡¸¸½¿ ˆ½Å ¬¸¸˜¸ ¡¸í ‡ˆÅ
]¸¢’¥¸ ¬¸Ÿ¸¬¡¸¸ í¾A ž¸¸£÷¸ Ÿ¸½¿, ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œ¸£ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä
‚ž¸ú ÷¸ˆÅ ž¸ú ‚¸¢˜¸ÄˆÅ :i ¬¸½ ˆÅŸ¸{¸¸½£ ‚¸¾£ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡
‚¸¨¸¸¬¸, ˆ½Å \¸¸£¸½¿ ‚¸½£ ‹¸»Ÿ¸÷¸¸ í¾A ÷¸˜¸¸¢œ¸, „¸½î¸£ :i ¬¸½ ¡¸í
™½‰¸¸ Š¸¡¸¸ í¾ ¢ˆÅ ¡¸í¸¿ ÷¸ˆÅ ¢ˆÅ Ÿ¸š¡¸ ‚¸¡¸ ¨¸Š¸Ä ž¸ú ‚œ¸›¸½ ¢¥¸‡ ‚¸¨¸¸¬¸
¨¸í›¸ ˆÅ£ ¬¸ˆÅ›¸½ Ÿ¸½¿ ¬¸Ÿ¸˜¸Ä ›¸íì í¾A œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸‚¸½¿ ‚¸¾£ ¤¸íº÷¸
¬¸ú œÏ½£ˆÅ ¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å {¸¢£‡ ž¸¸£÷¸ ¬¸£ˆÅ¸£ ¬¸½ œ¸¡¸¸Äœ÷¸ œÏ¡¸¸¬¸¸½¿ ˆ½Å
¤¸¸¨¸]¸»™ ž¸ú ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ˆÅ¸ ‚¿÷¸£¸¥¸ ˆÅŸ¸ í¸½›¸¸ ‡ˆÅ
fu:Rlkfgr ˆÅ£›¸½ ˆÅ¸ ˆÅ¸¡¸Ä £í ]¸¸÷¸¸ í¾A
2.2.3 ž¸¸£÷¸ Ÿ¸½¿, ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅ¸½ ‚¥œ¸ ‚¸¾£ ‚¥œ¸÷¸£-Ÿ¸š¡¸ ‚¸¡¸ ˆ½Å
œ¸¢£¨¸¸£¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¬¸Ÿ¸^¸¸ ]¸¸÷¸¸ í¾ ‚¸¾£ ¡¸í ¢ˆÅ£¸‡ ˆ½Å Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å
¢¥¸‡ ›¸íì; ¤¸¢¥ˆÅ Ÿ¸ˆÅ¸›¸ ‰¸£ú™›¸½ ˆÅú ¨¸í›¸ú¡¸ ¥¸¸Š¸÷¸ ¬¸½ rkRi;Z
£‰¸÷¸¸ í¾A ž¸¸£÷¸ Ÿ¸½¿ ‚¥œ¸ ‚¸¡¸ œ¸¢£¨¸¸£¸½¿ ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸
ˆÅ¸ ‚ž¸¸¨¸ ‡ˆÅ ¬¸¸˜¸ÄˆÅ ˆÅ«’ í¾, ]¸¸½ „›í½¿ œ¸¸½«¿¸µ¸, ¬¨¸¸¬˜¡¸ £®¸¸ ‚¸¾£
¢©¸®¸¸ ]¸¾¬¸ú œÏ¸˜¸¢Ÿ¸ˆÅ t:jrksa ˆÅ¸½ œ¸»£ú ˆÅ£›¸½ ¬¸½ £¸½ˆÅ÷¸¸ í¾A ¢ˆÅ›÷¸º
ˆ½Å¨¸¥¸ ‚¥œ¸ ‚¸¡¸ ˆ½Å œ¸¢£¨¸¸£¸½¿ ˆ½Å ¢¥¸‡ Æ¡¸¸ ¥¸¸Š¸» ¬¸Ÿ¸^¸÷¸¸ í¾, ¡¸í
¨¸÷¸ÄŸ¸¸›¸ ´©¡¸ ¥¸½‰¸ Ÿ¸½¿ ‚\Ž¸ ›¸íì Ÿ¸¸›¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ ]¸í¸¿ ‚¸¢˜¸ÄˆÅ
Š¸¢÷¸¢¨¸¢š¸, ž¸»¢Ÿ¸ ˆÅú ™º¥¸Äž¸÷¸¸ ‚¸¾£ ¬¸¿œ¸¢î¸ ˆ½Å ¤¸[õ÷¸½ Ÿ¸»¥¡¸¸½¿ ¬¸¢í÷¸
¤¸íº÷¸ ¬¸½ ˆÅ¸£ˆÅ¸½¿ ›¸½ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú {¸³£÷¸ ˆÅ¸½ „\\¸ Ÿ¸š¡¸ ‚¸¡¸
‚¸¾£ „\\¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ ¤¸[õ¸ ¢™¡¸¸ í¾A ‚÷¸À ]¸¸½ ˆºÅŽ Ÿ¸í¬¸»¬¸
¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ¨¸í ¡¸í ¢ˆÅ ¨¸í›¸ú¡¸ Ÿ¸ˆÅ¸›¸ ˆÅú ¢ˆÅ¬¸½ {¸³£÷¸ í¾, ˆÅú
‚œ¸½®¸¸ ¡¸í¸¿ ‚¢š¸ˆÅ ¥¸¸½Š¸ íÿA ‚›¸ºŸ¸¸›¸÷¸À ž¸¸£÷¸ ˆ½Å 42.8 ¢Ÿ¸¢¥¸¡¸›¸
¨¡¸¢Æ÷¸ ‚˜¸¨¸¸ 15.2 œÏ¢÷¸©¸÷¸ ©¸í£ú œ¸¢£¨¸¸£ ‡ˆÅ ˆÅŸ¸£½ ˆÅú
‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒÄ Ÿ¸½¿ £í÷¸½ íÿA ž¸¸£÷¸ ˆÅú ]¸›¸Š¸µ¸›¸¸, 2001 ˆ½Å
‚›¸º¬¸¸£ 35 œÏ¢÷¸©¸÷¸ ©¸í£ú ]¸›¸¬¸¿‰¡¸¸ ‡ˆÅ ˆÅŸ¸£½ ˆÅú ƒˆÅ¸ƒÄ Ÿ¸½¿
£í÷¸ú í¾A ‡½¬¸½ œ¸¢£¨¸¸£¸½¿ ˆ½Å 68 œÏ¢÷¸©¸÷¸ œ¸¢£¨¸¸£¸½¿ Ÿ¸½¿ \¸¸£ ‚˜¸¨¸¸
‚¢š¸ˆÅ ¬¸™¬¡¸ íÿA ˆºÅ¥¸ ©¸í£ú ‚¸¤¸¸™ú ˆ½Å ¥¸Š¸ž¸Š¸ 81 ¢Ÿ¸¢¥¸¡¸›¸
‚˜¸¨¸¸ 25.7 œÏ¢÷¸©¸÷¸ ¨¡¸¢Æ÷¸ ¬¸£ˆÅ¸£ú $¸£ú¤¸ú £½‰¸¸ ˆ½Å ›¸ú\¸½ íÿA
19
Report on Trend and Progress of Housing in India, 2008
cannot be imagined without safe, secure and
comfortable shelter. The need for shelter is one
of the fundamental requirements, which merits
priority attention.
2.2.2 The housing sector in India holds tremendous
potential and has a positive impact on the
economic and social development of the country.
However, the provision of 'affordable housing for
all' is a complex problem with challenges
emerging from various facets of the urban sector.
In India, the discussion on affordable housing
has till now revolved around housing for EWS and
LIG categories. However, it has been increasingly
observed that even MIG are not able to afford
housing for them. Despite considerable efforts
from the Government of India through the five-
year plans and several conducive policies,
narrowing the gap in housing shortage remains a
daunting task.
2.2.3 In India, affordable housing is perceived to be
related to low and lower middle income
households and relates to the affordability in
terms of the cost of purchase of the house rather
than the rentals. The lack of affordable housing
is a significant hardship for low income
households in India, which prevent them from
meeting their basic needs like nutrition,
healthcare and education. But, what is perceived
to be applicable only to the low income
households may not hold well in current
scenario, where several factors including
economic activity, scarcity of land and soaring
property prices have increased the need for
affordable housing even amongst the upper
middle income and high income groups.
Therefore, there are more people than what is
realised who need affordable housing.
Approximately, 42.8 million persons or about
15.2 per cent of India's urban population live in
slum settlements. According to Census 2001 of
India, 35 per cent of urban households live in
single room dwelling units and 68 per cent of
such households have four members or more.
Approximately, 81 million persons or 25.7 per
cent of the total urban population are below the
poverty line.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

¤¸¸ÁƬ¸-1 À ‚¸¨¸¸¬¸ ¨¸í›¸ú¡¸÷¸¸ ‡¨¸¿ \¸º›¸¸¾¢÷¸¡¸¸¿ Box1-HousingAffordabilityandChallenges

The two critical factors determining provision of housing

‚¸Ÿ¸ ¥¸¸½Š¸¸½¿ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ˆÅú ¨¡¸¨¸¬˜¸¸ ¢›¸š¸¸Ä¢£÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ for the masses are:
™¸½ ˆÅ¸£µ¸ Ÿ¸í÷¨¸œ¸»µ¸Ä íÿ, ]¸¸½ ƒ¬¸ œÏˆÅ¸£ íÿ À- (i) Accessibility to housing finance and housing
market
(i) ‚¸¨¸¸¬¸ ¢¨¸î¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¤¸¸{¸¸£ ÷¸ˆÅ œ¸íº¿\¸ (ii) Affordability of house and housing finance.
(ii) ‚¸¨¸¸¬¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅú ¨¸í›¸ú¡¸÷¸¸ Affordability is influenced by a range of factors
including wealth, fiscal and monetary policies,
¨¸í›¸ú¡¸÷¸¸ ‚›¸½ˆÅ ˆÅ¸£µ¸¸½¿ ¬¸½ œÏž¸¸¢¨¸÷¸ í¸½÷¸ú í¾ ¢]¸¬¸Ÿ¸½¿ ¬¸¿œ¸¢î¸, house price and financial market characteristics.
Ÿ¸¸¾¢ÍˆÅ ‚¸¾£ ¢¨¸î¸ú¡¸ ›¸ú¢÷¸¡¸¸¿, ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ‚¸¾£ ¢¨¸î¸ú¡¸ ¤¸¸{¸¸£ For any individual, the affordability of housing will
change over time, depending on such factors as
ˆÅú ¢¨¸©¸½«¸÷¸¸‡¿ ©¸¸¢Ÿ¸¥¸ íÿ A ¢ˆÅ¬¸ú ž¸ú ¨¡¸¢Æ÷¸ ˆ½Å ¢¥¸‡, ‚¸¨¸¸¬¸ ˆÅú income progression, number of dependents, age,
¨¸í›¸ú¡¸÷¸¸ ¬¸Ÿ¸¡¸ ˆ½Å ¬¸¸˜¸ ¤¸™¥¸ ]¸¸‡Š¸ú, ]¸¸½ ‡½¬¸½ ˆÅ¸£µ¸¸½¿ œ¸£ ¢›¸ž¸Ä£ job security, and changes in interest rates and so
on. But generally, the affordability of mortgage
í¸½Š¸ú, ]¸¾¬¸½ ‚¸¡¸ Ÿ¸½¿ ¨¸¼¢Ö, ‚¸¢ª÷¸¸½¿ Ÿ¸½¿ ¨¸¼¢Ö, ‚¸¡¸º, £¸½{¸Š¸¸£ ‚¸¾£ loans is dictated by three main factors namely:
¤¡¸¸]¸ ™£¸½¿ Ÿ¸½¿ œ¸¢£¨¸÷¸Ä›¸ ‚¸¢™ ¢ˆÅ›÷¸º ‚¸Ÿ¸÷¸¸¾£ ¬¸½ ¤¸¿š¸ˆÅ †µ¸¸½¿ ˆÅú a) House price
¨¸í›¸ú¡¸÷¸¸ ÷¸ú›¸ Ÿ¸º‰¡¸ ˆÅ¸£µ¸¸½¿ ¬¸½ œÏž¸¸¢¨¸÷¸ í¸½÷¸ú í¾ ¡¸˜¸¸ À- b) Income
ˆÅ. ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ c) Mortgage products
‰¸. ‚¸¡¸ In India, given the house price range,
Š¸. ¤¸¿š¸ˆÅ (efVxst) „÷œ¸¸™ ž¸¸£÷¸ Ÿ¸½¿, Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅúŸ¸÷¸¸½¿ ˆÅú household income and the various
mortgage products and loan character-
¢¨¸¢ž¸››¸ £½¿]¸, œ¸¢£¨¸¸£ ˆÅú ‚¸¡¸ ‚¸¾£ ¢¨¸¢ž¸››¸ ¤¸¿š¸ˆÅ „÷œ¸¸™ istics, assumes greater significance on
‚¸¾£ †µ¸ fof'k"Vrk,a, ¨¸í›¸ú¡¸÷¸¸ ds fy, ‚÷¡¸¢š¸ˆÅ affordability.

egRoiw.kZ í¾ A 'Affordable housing' is a term that has the

potential to transform the dream of every
''¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸'' ˆÅ¸ ÷¸¸÷œ¸¡¸Ä í¾ ¢ˆÅ ¢]¸¬¸¬¸½ ™½©¸ ˆÅ¸ œÏ÷¡¸½ˆÅ family in the country to own a house into
œ¸¢£¨¸¸£ ‚œ¸›¸¸ Ÿ¸ˆÅ¸›¸ í¸½›¸½ ˆ½Å ¬¸œ¸›¸½ ˆÅ¸½ ¬¸¸ˆÅ¸£ ˆÅ£ ¬¸ˆ½Å A reality. Affordable housing refers to a
dwelling where the total housing costs are
¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ‡½¬¸¸ ‚¸¨¸¸¬¸ í¸½÷¸¸ í¾ ¢ˆÅ ¢]¸¬¸ˆ½Å ˆºÅ¥¸ Ÿ¸»¥¡¸ affordable to those living in that housing
ˆÅ¸½ „¬¸ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ £í›¸½ ¨¸¸¥¸¸ œ¸¢£¨¸¸£ ¨¸í›¸ ˆÅ£ ¬¸ˆ½ÅA unit. The current debate on affordable
housing has assumed significance with the
¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œ¸£ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿ \¸\¸¸Ä ™½©¸ Ÿ¸½¿ ¢œ¸Ž¥¸½ ˆºÅŽ rapid rise in residential property prices
‚¥œ¸ ¬¸Ÿ¸¡¸ ˆ½Å ™¸¾£¸›¸ ‚¸¨¸¸¬¸ú¡¸ ¬¸¿œ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ž¸¸£ú across the country in a short span of time.
The formal institutional finance in India
¨¸¼¢Ö ˆ½Å ˆÅ¸£µ¸ Ÿ¸í÷¨¸œ¸»µ¸Ä í¸½ Š¸ƒÄ í¾A ž¸¸£÷¸ Ÿ¸½¿ ‚¸¾œ¸\¸¸¢£ˆÅ such as the banks and the housing finance
¢¨¸î¸ú¡¸ ¬¸¿¿¬˜¸¸›¸, ]¸¾¬¸½ ¤¸ÿˆÅ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ Ÿ¸š¡¸ companies is largely perceived to be
serving the middle and higher end of the
¨¸Š¸Ä ‚¸¾£ „\\¸ ¨¸Š¸Ä ˆÅú ¤¸íº÷¸ ‚¢š¸ˆÅ ¬¸í¸¡¸÷¸¸ ˆÅ£ £íú íÿ market. A large segment of low income
¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆÅ¸ ‡ˆÅ ¤¸”õ¸ ¢í¬¬¸¸ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ˆÅ¸£µ¸¸½¿ ¬¸½ market remains unserviced due to the
following reasons:
‚¬¸½¢¨¸÷¸ £í Š¸¡¸¸ í¾ À- · Credit Risk
· †µ¸ ]¸¸½¢‰¸Ÿ¸A · High transaction and service cost
· ‚¢š¸ˆÅ ˆÅ¸£¸½¤¸¸£ú ‚¸¾£ ¬¸½¨¸¸ ¥¸¸Š¸÷¸A · Absence of land tenure for financing
· ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ †µ¸ í½÷¸º ž¸»¢Ÿ¸ ˆÅ¸ ›¸ í¸½›¸¸A housing
· ‚¢›¸¡¸¢Ÿ¸÷¸ ‚¸¡¸ ]¸¸½ ¬¸ú{¸›¸ œ¸£ ¢›¸ž¸Ä£ ˆÅ£÷¸ú í¾A · Irregular flow of income due to
· ‚¸¡¸ ‚¸ˆÅ¥¸›¸ ˆ½Å ¢¥¸‡ ¢¨¸©¨¸¬¸›¸ú¡¸ ¬¸¸®¡¸ ˆÅ¸ seasonality
vHkkoA ‚¬¨¸úˆÅ¸¡¸Ä ¬¸¿œ¸¸¢©¨¸ÄˆÅ, ]¸¾¬¸½ œ¸€¬¸¥¸, ¤¸÷¸Ä›¸ · Lack of tangible proof for assessment
‡¨¸¿ ‚¸ž¸»«¸µ¸ ¨¸í›¸ú¡¸÷¸¸ ˆÅ¸½ Ÿ¸¸¿Š¸ ‚¸¾£ ‚¸œ¸»¢÷¸Ä ˆ½Å of income Unacceptable collaterals
‚›¸º¬¸¸£ í¥¸ ˆÅ£›¸¸ í¸½Š¸¸A such as crops, utensils and jewellery

20
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

2.2.4 ¨¸í›¸ú¡¸÷¸¸ ‚œ¸›¸½ ¬¸¸˜¸ ›¸ ˆ½Å¨¸¥¸ ¬¸¸Ÿ¸¸¢]¸ˆÅ œ¸¢£´©¡¸÷¸¸ ¥¸¸÷¸ú í¾

2.2.4 Affordability has to be addressed both on the
¤¸¢¥ˆÅ ˆÅ¸£¸½¤¸¸£ ˆ½Å ž¸ú ‚›¸½ˆÅ ‚¨¸¬¸£ ¢Ÿ¸¥¸÷¸½ íÿ A Ÿ¸¸¿Š¸-‚¸œ¸»¢÷¸Ä Ÿ¸½¿ demand and supply side. Affordability can bring
‚¿÷¸£ ˆ½Å ˆÅ¸£µ¸ Ÿ¸¸¿Š¸ ¤¸¥¸¨¸÷¸ú í¸½÷¸ú í¾ ¢]¸¬¸¬¸½ ¢¨¸ˆÅ¸¬¸ˆÅ¸½¿ ‚¸¾£ with it not only social inclusion but also prove to
¢›¸¨¸½©¸ˆÅ¸½¿ ˆÅ¸½ ‚¸¢¬÷¸¡¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸ ‡¨¸¿ ¥¸¸ž¸ ˆÅŸ¸¸›¸½ ˆ½Å œÏ¢÷¸ ‚¸ˆÅ«¸Äµ¸ be a large business opportunity. The demand-
supply gap, coupled with strong demand drivers,
í¸½÷¸¸ í¾A nqfu;k Hkj esa oguh; vkokl ds fy, Lohd`r fn'kk offer developers and investors alike the potential
funsZ'k ds rgr ifjokj dh ldy vk;k dk 30% ls de for asset creation and profits. Worldwide
ewY; ekuk x;k gSA vkokl ewY; ds varxZr izk;% dj ohek accepted guideline for housing affordability is a
cost less than 30% of a household's gross
vkoj.k ,oa lkekU; mi;ksfxrk ykxrsa 'kkfey gksrs gSaA income. Housing costs considered in this
guideline generally include taxes and insurance
for owners, and usually include utility costs.
2.2.5 ¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œ¸£ „\\¸ ¬÷¸£ú¡¸ ˆÅ¸¡¸Ä¤¸¥¸, ]¸¸½ ž¸¸£÷¸
¬¸£ˆÅ¸£ ׸£¸ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾, ˆ½Å ‚›¸º¬¸¸£, ¡¸¢™ ƒ¬¸ ¬¸Ÿ¸¬¡¸¸
2.2.5 According to the High Level Task Force on
ˆÅ¸ ¬¸Ÿ¸¸š¸¸›¸ ©¸ú‹Ï íú ›¸íì ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾, ÷¸¤¸ ¡¸í ™½©¸ Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ
Affordable Housing for All which is set up by
¢¨¸ˆÅ¸¬¸ ‚¸¾£ $¸£ú¤¸ú ™»£ ˆÅ£›¸½ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ £µ¸›¸ú¢÷¸¡¸¸½¿ ˆÅ¸½ Š¸¿ž¸ú£ Government of India, if this problem is not dealt
:i ¬¸½ œÏž¸¸¢¨¸÷¸ ˆÅ£½Š¸úA at the earliest, it may seriously affect the
country's economic growth and poverty
reduction strategies.

Box 2-Affordable Housing: Solutions& Future

¤¸¸ÁƬ¸-2 À ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ À í¥¸ ‚¸¾£ ¬¸¿ž¸¸¨¸›¸¸‡¿
‚›¸½ˆÅ ™½©¸¸½¿ ›¸½ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸¸½¿ ˆÅú ˆÅŸ¸ú ˆÅ¸½ ™»£ ˆÅ£›¸½ ˆ½Å ¢¥¸‡
¢¨¸¢ž¸››¸ ›¸ú¢÷¸¡¸¸¿ ¤¸›¸¸ƒÄ íÿA ÷¸ú›¸ Ÿ¸º‰¡¸ ‹¸’ˆÅ ]¸¸½ ‚¸¨¸¸¬¸¸½¿ ˆÅú ˆÅŸ¸ú
ˆÅ¸½ ™»£ ˆÅ£›¸½ Ÿ¸½¿ ¬¸í¸¡¸÷¸¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ, ¨¸½ íÿ ¬¸¿¨¸½™›¸©¸ú¥¸ ¬¸¾ˆ½Åµ”£ú
¤¸¸{¸¸£, ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ¨¸¸¥¸ú tksu œÏµ¸¸¥¸ú ‚¸¾£ ž¸»¢Ÿ¸ ¤¸ÿ¢ˆ¿ÅŠ¸ ¢]¸›¸ˆ½Å
¬¸¸˜¸ ˆÅ£ ¨¸ Ÿ¸¸¾¢ÍˆÅ ›¸ú¢÷¸¡¸¸¿ ž¸ú ‚›¸ºˆ»Å¥¸ í¸½¿ ÷¸¸¢ˆÅ ¤¸¿š¸ˆÅ¸½¿ ‚¸¾£ †µ¸¸½¿
œ¸£ ¥¸¸Š¸÷¸ ¨¡¸¡¸ ‹¸’½ ›¸ú¢÷¸ ¬¸¿¤¸¿š¸ú ‡ˆÅ „™¸í£µ¸ ž¸»¢Ÿ¸ ¬¨¸¸¢Ÿ¸÷¨¸ ˆÅ¸
›¸ í¸½›¸¸ í¾A ž¸¸£÷¸ Ÿ¸½¿ ž¸»¢Ÿ¸ ¬¨¸¸¢Ÿ¸÷¨¸ ˆÅú Š¸¸£¿’ú ›¸ ¢Ÿ¸¥¸›¸½ ˆ½Å ˆÅ¸£µ¸
‚›¸½ˆÅ ¬¸Ÿ¸¬¡¸¸‡¿ œ¸¾™¸ í¸½ ]¸¸÷¸ú íÿA ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿ ž¸»¢Ÿ¸ ¬¨¸¸¢Ÿ¸÷¨¸ ˆ½Å¨¸¥¸
''‚›¸ºŸ¸¸¢›¸÷¸ ¬¨¸¸¢Ÿ¸÷¨¸'' í¸½÷¸¸ í¾, œÏŸ¸¸µ¸ ¢¤¸ÇÅú ¢¨¸¥¸½‰¸ ‚¸¾£ ˆÅ£-
‚™¸¡¸Š¸ú £¬¸ú™½¿ í¸½÷¸ú íÿA ¬¸ž¸ú ¢¨¸ˆÅ¢¬¸÷¸ ™½©¸¸½¿ Ÿ¸½¿ Š¸¸£¿’ú ¬¨¸¸¢Ÿ¸÷¨¸
í¸½÷¸¸ í¾ ¢ˆÅ›÷¸º ‚¢š¸ˆÅ÷¸£ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ „œ¸¥¸¤š¸ ›¸íì í¸½
œ¸¸÷¸¸ í¾A ž¸¸£÷¸ Ÿ¸½¿ ž¸ú ¬¨¸¸¢Ÿ¸÷¨¸ Š¸¸£¿’ú ©¸º³ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ˆÅ¸£Ä¨¸¸ƒÄ
Prospects
Various countries have designed several policies
to address the problem of inadequate supplies of
affordable housing. Three prominent tools which
can help in addressing the issue of inadequate
housing are development of secondary market ,
inclusionary zoning, and land banking coupled
with tax and fiscal policies that result in reducing
the cost of mortgages and the cost of borrowing.
One example of policy support is related to the
structural constraint of land titles. The absence
of a guaranteed land title system in India has far-
reaching implications. Current land ownership
records only provide "presumptive title": the sale
deed and the tax-paid receipt. All developed
countries guarantee titles; but most developing
countries do not. In India also, steps are being
taken to introduce 'Title Guarantee'.

ˆÅú ]¸¸ £íú í¾A Housing can no longer be seen in isolation than
integrated delivery of services such as water
supply and sanitation, health care, education
‚¸¨¸¸¬¸ ¬¸Ÿ¸¬¡¸¸ ˆÅ¸½ ‚¥¸Š¸-˜¸¥¸Š¸ £‰¸ˆÅ£ ›¸íì ™½‰¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A
and access to livelihood which is required to
Æ¡¸¸½¿¢ˆÅ ¡¸í ‚›¡¸ „œ¸¥¸¤š¸ ¬¸º¢¨¸š¸¸‚¸½¿ ¡¸˜¸¸ ]¸¥¸¸œ¸»¢÷¸Ä ¨¸ ¬¸œ¸€¸ƒÄ, augment the housing gap. Examples show that
¬¨¸¸¬˜¡¸ ™½‰¸ž¸¸¥¸, ¢©¸®¸¸ ‚¸¾£ £¸½{¸Š¸¸£ ˆ½Å ¬¸¸š¸›¸ ]¸¸½ ‚¸¨¸¸¬¸ ˆÅŸ¸ú for every rupee invested in such public
ˆÅ¸½ ™»£ ˆÅ£›¸½ Ÿ¸½¿ ¬¸í¸¡¸ˆÅ í¸½ ¬¸ˆÅ÷¸½ íÿA „™¸í£µ¸ ¬¸½ ™½‰¸¸ Š¸¡¸¸ í¾ ¢ˆÅ

21
Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

ƒ›¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ¬¸º¢¨¸š¸¸‚¸½¿ œ¸£ ‰¸\¸Ä ¢ˆÅ¡¸½ Š¸‡ œÏ÷¡¸½ˆÅ ² œ¸‡ ¬¸½ $¸£ú¤¸ infrastructure, the poor are able to derive Rs 7
worth of utility. of their own capital. However not
‚œ¸›¸ú 7 ² œ¸‡ ˆÅú œ¸»¿]¸ú dekrkk í¾A í¸¥¸¸¿¢ˆÅ ¬¸ž¸ú ‚œ¸›¸¸ Ÿ¸ˆÅ¸›¸
everyone can manage to afford to own a home.
›¸íì ¤¸›¸¸ ¬¸ˆÅ÷¸½ íÿA ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ Stocks of publicly created, and innovatively
¢Ÿ¸©¸›¸ ˆ½Å ÷¸í÷¸ ¬¸£ˆÅ¸£ú ¢›¸ˆÅ¸¡¸¸½¿ ׸£¸ ‡½¬¸½ ¥¸¸½Š¸¸½¿ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸ managed rental housing developed by
ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢ˆÅ£¸‡ œ¸£ ‚¸¨¸¸¬¸ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ ˆÅú government bodies under the Jawaharlal Nehru
¨¡¸¨¸¬˜¸¸ ˆÅú ]¸¸ ¬¸ˆÅ÷¸ú í¾A National Urban Renewal Mission (JNNURM)
could help in addressing the needs of such
¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ¬¨¸¸¢Ÿ¸÷¨¸ ˆ½Å ‚›¸½ˆÅ ¢¨¸ˆÅ¥œ¸ íÿ ¡¸˜¸¸ ¬¸¸^¸½™¸£ú Ÿ¸½¿ people.
¬¨¸¸¢Ÿ¸÷¨¸ (¢]¸¬¸Ÿ¸½¿ ¢ˆÅ£¸‡™¸£ ž¸»-¬¨¸¸Ÿ¸ú ¬¸½ ¬¸¿œ¸¢î¸ ˆÅ¸ ˆºÅŽ ž¸¸Š¸ There are a range of affordable home ownership
¢ˆÅ£¸‡ œ¸£ ¥¸½÷¸¸ í¾ ‚¸¾£ ©¸½«¸ ¬¸¿œ¸¢î¸ ˆÅ¸½ ž¸ú £‰¸÷¸¸ í¾)A ‡ˆÅ ‚\Žú options, including shared ownership (where a
ƒ¢Æ¨¸’ú ‚˜¸¸Ä÷¸Ã ª¢Ÿ¸ˆÅ ׸£¸ ¢›¸Ÿ¸¸Äµ¸ ˆÅ¸¡¸Ä Ÿ¸½¿ ¡¸¸½Š¸™¸›¸ (¢›¸Ÿ¸¸Äµ¸ tenant takes on rent part of the property from a
landlord, and owns the remaining property).
¬¸¸Ÿ¸ŠÏú ˆ½Å „÷œ¸¸™›¸ ¬¸¢í÷¸) ˆÅ¸½ ‚¸¨¸¸¬¸ ˆÅ¸ ¬¨¸¸¢Ÿ¸÷¨¸ œ¸¸›¸½ ˆ½Å ¢¥¸‡ Sweat equity i.e. contribution of labor by the
‡ˆÅ œÏž¸¸¨¸ˆÅ¸£ú „œ¸¸¡¸ Ÿ¸¸›¸¸ Š¸¡¸¸ í¾, ¢¨¸©¸½«¸ˆÅ£, ‚¸¢˜¸ÄˆÅ ´¢«’ ¬¸½ owner in construction (including in production of
¢œ¸Ž”õ½/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä ˆ½Å ¢¥¸‡ {¸¸½¢›¸¿Š¸ ‚¸¾£ ž¸»¢Ÿ¸ œÏ¡¸¸½Š¸ ¢›¸¡¸¸½]¸›¸ construction material) has been recognized an
effective measure for improving the affordability
ˆ½Å ¤¸¸£½ Ÿ¸½¿ ž¸ú ˆÅ¸£Ä¨¸¸ƒÄ ˆÅú ]¸¸ £íú í¾ ¢]¸¬¸¬¸½ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ‚¸¨¸¸¬¸ of home, particularly, by EWS/LIG households.
‚¸¾£ ¢Ÿ¸¢ª÷¸-‚¸¡¸ ›¸½¤¸£íº”, ž¸»¢Ÿ¸ ˆÅ¸ ‚¸£®¸µ¸, ‹¸›¸ú ‚¸¤¸¸™ú ¨¸¸¥¸½ Also steps towards zoning and land use planning
®¸½°¸¸½¿ Ÿ¸½¿ ¤¸íºŸ¸¿¢{¸¥¸½ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅ¸ ¢›¸Ÿ¸¸Äµ¸, ¬¸¬÷¸ú ¬¸¸Ÿ¸ŠÏú ˆÅ¸ œÏ¡¸¸½Š¸ that encourages low-income housing, and
mixed-income neighbourhoods, reserving of
ˆÅ£ˆ½Å ¥¸¸Š¸÷¸ ¨¡¸¡¸ ‹¸’¸›¸½ ˆ½Å ¢¥¸‡ œÏ½£µ¸¸ ¢Ÿ¸¥¸÷¸ú í¾ ‚¸¾£ ‚¸¨¸¸¬¸ land, adopting vertical construction in congested
¢›¸Ÿ¸¸Äµ¸ Ÿ¸½¿ ‚¸š¸º¢›¸ˆÅ œÏ¸¾Ô¸¸½¢Š¸ˆÅú ˆ½Å œÏ¡¸¸½Š¸ ˆÅ¸½ ¤¸[õ¸¨¸¸ ™½›¸¸ ‚¸¾£ ¢›¸]¸ú areas, reducing prices through use of low cost
®¸½°¸ ¬¸½ ¬¸¸^¸½™¸£ú ˆÅ£›¸½ ˆÅú ¢™©¸¸ Ÿ¸½¿ £¸]¡¸ ‚¸¾£ ˆ½Å›Í ¬¸£ˆÅ¸£ ׸£¸ materials, encouraging the use of modern
technology for creation of housing stock and
œ¸í¥¸ ˆÅ£›¸½ ˆÅú {¸³£÷¸ í¾ ¢]¸¬¸¬¸½ ‚¸¨¸¸¬¸¸½¿ ˆÅú ˆÅŸ¸ú ™»£ í¸½A partnering with the private sector need to be
¬¸£ˆÅ¸£ ˆÅ¸½ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú ¬¸Ÿ¸¬¡¸¸ ˆÅ¸½ ™»£ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ initiated by the State and Central Governments
to augment the housing gap.
¬¸£ˆÅ¸£ú ¢›¸]¸ú ¬¸¸^¸½™¸£ú ˆ½Å ׸£¸ ¢¨¸ˆÅ¸¬¸ ¢›¸¡¸¿°¸µ¸ ¢¨¸¢›¸¡¸Ÿ¸¸½¿ ‡¨¸¿
¬¸¿¬¨¸úˆ¼Å¢÷¸ œÏ¢ÇÅ¡¸¸ ˆÅ¸½ ¡¸º¢Æ÷¸¬¸¿Š¸÷¸ ¤¸›¸¸›¸¸ \¸¸¢í‡A œÏ¸ƒ¨¸½’ The Government needs to rationalize
development control regulations and streamline
¢¨¸ˆÅ¸¬¸ˆÅ¸½¿, ˆÅ¸Á¥¸¸½›¸ú ¢¨¸ˆÅ¸¬¸ˆÅ¸½¿ ‚¸¾£ ¬¸íˆÅ¸£ú ¬¸¢Ÿ¸¢÷¸¡¸¸½¿ ˆÅ¸½ ˆÅ£
approval procedures through public private
¥¸¸ž¸ ¨¸ ‚›¡¸ œÏ¸½÷¬¸¸í›¸ ™½ˆÅ£ $¸£ú¤¸ ¥¸¸½Š¸¸½¿ ˆÅ¸½ ¬¸¬÷¸½ Ÿ¸ˆÅ¸›¸ „œ¸¥¸¤š¸ partnerships to address the problem of
ˆÅ£¸›¸½ ˆ½Å ¢¥¸‡ œÏ¸½÷¬¸¸¢í÷¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A ¬¸£ˆÅ¸£ú ¢›¸ˆÅ¸¡¸¸½¿ ˆÅ¸½ affordable housing. Private developers,
colonizers and co-operative societies can be
ž¿¸ú $¸£ú¤¸¸½¿ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸¸½¿ ˆ½Å ¢”{¸¸¡¸›¸ ÷¸¾¡¸¸£ ˆÅ£›¸½ ‚¸¾£ ¬¸º¢¨¸š¸¸‡¿ encouraged further with tax benefits and other
œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ $¸¾£-¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ ÷¸˜¸¸ ‚›¡¸ ¢¬¸¢¨¸¥¸ incentives to make housing available to the
¬¸¸½¬¸¸¡¸’ú ¬¸¿Š¸“›¸¸½¿ ¬¸½ ž¸ú ¬¸í¸¡¸÷¸¸ ¥¸½›¸ú \¸¸¢í‡A ¨¸½ ‚¸¨¸¸¬¸ ‚¸¾£ economically poor at nominal rates. Government
bodies should also seek support from NGOs and
œ¸º›¸¨¸¸Ä¬¸ œÏ¡¸¸¬¸¸½¿ Ÿ¸½¿ ©¸í£ú $¸£ú¤¸¸½¿ ˆ½Å ¡¸¸½Š¸™¸›¸ ˆÅ¸½ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£ other civil society organizations in planning
¬¸ˆÅ÷¸½ íÿ ÷¸¸¢ˆÅ ¡¸¸½]¸›¸¸ „›¸ ¥¸¸½Š¸¸½¿ ˆ½Å ׸£¸ ÷¸¾¡¸¸£ ˆÅú ]¸¸‡ ¢]¸›í½¿ ¨¸í¸¿ houses for the poor in terms of design and
¤¸¬¸›¸¸ í¾ ¡¸¸ ¢]¸›í½¿ ‚¸¤¸¿’›¸ ¢ˆÅ¡¸¸ ]¸¸›¸¸ í¾A facilities. They can ensure the involvement of the
urban poor in housing and resettlement efforts
£¸.‚¸.¤¸ÿˆÅ ›¸ú¢÷¸Š¸÷¸ „œ¸¸¡¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¡¸˜¸¸ œ¸¢£¡¸¸½]¸›¸¸ so that the plan is developed by those who have
to be settled and relocated.
¢¨¸î¸œ¸¸½«¸µ¸ ›¸ú¢÷¸ ‚¸¾£ ¤¸¸{¸¸£ ˆÅ¸ ¡¸¸½Š¸™¸›¸ ¢]¸¬¸Ÿ¸½¿ ›¸¨¸¸›Ÿ¸½«¸ ¢¨¸î¸ú¡¸
NHB is taking a decisive role through policy
¢¥¸‰¸÷¸½¿ ©¸¸¢Ÿ¸¥¸ íÿ ¨¸ ¢]¸›¸¬¸½ ‚¸¨¸¸¬¸ ¤¸¸{¸¸£ Ÿ¸½¿ ¨¸í›¸ú¡¸÷¸¸ ‚¸‡Š¸ú, measures such as a pro active project finance
¢›¸µ¸¸Ä¡¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸ ¢›¸ž¸¸ £í¸ í¾ A ‚¸¨¸¸¬¸ ˆÅú ˆÅŸ¸ú ˆÅ¸½ ™»£ ˆÅ£›¸½ ˆÅú policy and market interventions which includes
developing innovative financial instruments for
¢™©¸¸ Ÿ¸½¿ ‚œ¸›¸ú ›¡¸¸¡¸¸½¢\¸÷¸ ž¸»¢Ÿ¸ˆÅ¸ ˆ½Å ¢¥¸‡ £¸.‚¸.¤¸ÿˆÅ ‚ž¸ú ‚›¡¸ bringing flexibility in the housing market. For
doing justice to its role in filling the housing gap,
‚›¸½ˆÅ £µ¸›¸ú¢÷¸¡¸¸½¿ Ÿ¸½¿ ¬¨¸¡¸¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£½Š¸¸ A NHB will further have to engage itself in a multi-
pronged strategy.

22
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
2.3 ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆ½Å œÏ¢÷¸ ¢ž¸››¸-¢ž¸››¸ ‚¢ž¸ˆÅ£µ¸¸½¿
ˆÅú ž¸»¢Ÿ¸ˆÅ¸
2.3.1 £¸«’ïú¡¸ ©¸í£ú ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸ (2007) Ÿ¸½¿ ©¸í£ú
$¸£ú¤¸¸½¿ œ¸£ ¢¨¸©¸½«¸ ¤¸¥¸ ¢™¡¸¸ ]¸¸›¸½ ˆ½Å ¬¸¸˜¸ "¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸
‚¸¨¸¸¬¸" ˆÅ¸ ¥¸®¡¸ œÏ¸œ÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢¨¸¢ž¸››¸ œÏˆÅ¸£ ˆÅú
¬¸¸¨¸Ä]¸¢›¸ˆÅ-¢›¸]¸ú ž¸¸Š¸ú™¸£ú ˆÅ¸ œÏ¸¨¸š¸¸›¸ í¾A ˆ½Å›Í ‚¸¾£ £¸]¡¸
¬¸£ˆÅ¸£, ™¸½›¸¸½¿ ˆÅú ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ‚¸¾£ ¤¸]¸’ú¡¸ ¤¸¸š¸¸‚¸½¿ ˆÅ¸
œ¸¢£Ÿ¸¸µ¸ í¸½÷¸½ íº‡, £¸«’ïú¡¸ ©¸í£ú ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸
¤¸íº¢¨¸š¸ œ¸µ¸š¸¸¢£¡¸¸½¿ (¬’½ˆÅ í¸½¥”£¸½¿) ˆ½Å œÏˆÅ¸©¸ ¢¤¸¿™º œ¸£ š¡¸¸›¸
¬¸¿ˆ½Å¢›Í÷¸ ˆÅ£÷¸ú í¾A ¢¨¸¢ž¸››¸ œ¸µ¸š¸¸¢£¡¸¸½¿ ˆ½Å ¢¥¸‡ ›¸ú¢÷¸ ˆ½Å ‚š¸ú›¸,
¢›¸Ÿ›¸ œÏˆÅ¸£ ¬¸½ ž¸»¢Ÿ¸ˆÅ¸‚¸½¿ ˆÅú œ¸¢£ˆÅ¥œ¸›¸¸ ˆÅú Š¸ƒÄ í¾ À-
ˆ½Å›Í ¬¸£ˆÅ¸£ ˆÅú ž¸»¢Ÿ¸ˆÅ¸
· ‡ˆÅ ¬¸º¢¨¸š¸¸œÏ™¸÷¸¸ ‚¸¾£ ¬¸Ÿ¸˜¸ÄˆÅ¸£ú ˆ½Å :i Ÿ¸½¿ dke ˆÅ£›¸¸ A
· ¬¸¿¤¸¿¢š¸÷¸ £¸]¡¸ ¬¸£ˆÅ¸£¸½¿ ˆÅ¸½ £¸«’ïú¡¸ ©¸í£ú ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸
›¸ú¢÷¸ ‚¿Š¸úˆÅ¸£ ‚¸¾£ ‡ˆÅ ¬¸Ÿ¸¡¸¤¸Ö [¿Š¸ ¬¸½ ¢ÇÅ¡¸¸¢›¨¸÷¸ ˆÅ£›¸½ ˆ½Å
¢¥¸‡ ¬¸»¢\¸÷¸ ˆÅ£›¸¸ ‚¸¾£ „›¸ˆÅ¸ Ÿ¸¸Š¸Ä™©¸Ä›¸ ˆÅ£›¸¸A
· ‚¸¨¸¸¬¸ ®¸½°¸ ˆ½Å ¢¨¸ˆÅ¸¬¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ œÏˆÅ¸¡¸¸½¿Ä ˆÅ¸½ „œ¸¡¸ºÆ÷¸ :i ¬¸½
¢¨¸ˆ½Å›Íúˆ¼Å÷¸ ˆÅ£ˆ½Å ™½©¸ Ÿ¸½¿ ¬¸¿÷¸º¢¥¸÷¸ ®¸½°¸ú¡¸ ¢¨¸ˆÅ¸¬¸ ˆÅ¸ ¬¸¿¨¸š¸Ä›¸
ˆÅ£›¸¸ ‚¸¾£ œ¸¸£¢¬˜¸¢÷¸ˆÅ ³œ¸‡ ¬¸½ “¸½¬¸ œ¸¡¸¸Ä¨¸¸¬¸ ˆÅ¸½ ¬¸¿¨¸¢š¸Ä÷¸
ˆÅ£›¸¸A
· Ÿ¸»¥¸ž¸»÷¸ ¬¸º‰¸-¬¸º¢¨¸š¸¸‚¸½¿ ¬¸½ ©¸¸½¢š¸÷¸ ‚¸¢˜¸ÄˆÅ :i ¬¸½ ˆÅŸ¸{¸¸½£ ‚¸¾£
¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ˆ½Å ¬¸¿¨¸š¸Ä›¸¸˜¸Ä „œ¸¡¸ºÆ÷¸ ¢¨¸î¸ú¡¸
¬¸¸š¸›¸ ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸¸A
· ]¸¥¸¸œ¸»¢÷¸, ›¸¸¥¸ú, ¬¸œ¸€¸ƒÄ, Ÿ¸¥¸-]¸¥¸, ¢¨¸Ô¸º÷¸ ˆÅú ‚¸œ¸»¢÷¸Ä ‚¸¾£
œ¸¢£¨¸í›¸ ¬¸¿¡¸¸½]¸ˆÅ÷¸¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¡¸˜¸½«’ ‚¸š¸¸¢£ˆÅ ¬¸º¢¨¸š¸¸‡¿ œ¸¾™¸
ˆÅ£›¸½ ˆÅú ˆÅ¸¡¸Ä¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½ ¬¸¿¨¸¢š¸Ä÷¸ ˆÅ£›¸¸A
· ¨¸¸¬÷¸¢¨¸ˆÅ, ¬¸¸Ÿ¸¸¢]¸ˆÅ ‚¸¾£ ‚¸¢˜¸ÄˆÅ ¬¸½¨¸¸‚¸½¿ ˆ½Å œÏ¸¨¸š¸¸›¸¸˜¸Ä,
‚¸¢˜¸ÄˆÅ :i ¬¸½ ‚˜¸Ä®¸Ÿ¸ ‚¸¨¸¸¬¸ú¡¸ ¬¸¿¨¸š¸Ä›¸ ›¸Ÿ¸»›¸½ (Ÿ¸¸Á”¥¬¸)
‡¨¸¿ Ÿ¸¸›¸ˆÅ ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸¸A
· ‚¸¢˜¸ÄˆÅ :i ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä œ¸£ ¢¨¸©¸½«¸ ¬¸¿¿ˆ½Å›Íµ¸ ˆ½Å
¬¸¸˜¸, ‚¸¨¸¸¬¸ ‡¨¸¿ ©¸í£ú ¤¸º¢›¸¡¸¸™ú [¸¿\¸½ ˆ½Å ¬¸¿¨¸š¸Ä›¸ ˆ½Å ¢¥¸‡ ¢¨¸î¸
Ÿ¸¿°¸¸¥¸¡¸ ˆ½Å ¬¸í¡¸¸½Š¸ ¬¸½ „œ¸¡¸ºÆ÷¸ £¸]¸ˆÅ¸½«¸ú¡¸ ¢£¡¸¸¡¸÷¸½¿ ™½›¸¸ A
23
Report on Trend and Progress of Housing in India, 2008
2.3 The Role of Different Agencies
towards Affordable Housing
2.3.1 The National Urban Housing & Habitat Policy
2007 (NUHHP-2007) seeks to promote various
types of public-private partnerships for realizing
the goal of "Affordable Housing for All" with
special emphasis on the urban poor. Given the
magnitude of the housing shortage and
budgetary constraints of both the Central and
State Governments, the NUHHP.2007 focuses
the spotlight on multiple stake-holders. Specific
roles have been envisaged under the policy for
various stakeholders, which ae as under:
Role of Central Government
· To act as a 'facilitator' and 'enabler'
· To advise and guide respective State
Governments to adopt and implement the
National Urban Housing & Habitat Policy in a
time bound manner.
· To promote balanced regional development in
the country by suitably decentralizing functions
relating to development of the Housing Sector
and promotion of an ecologically sound habitat.
· To develop suitable financial instruments for
promotion of housing for the EWS and LIG
groups serviced by basic amenities.
· To promote action plans for creation of adequate
infrastructure facilities relating to water,
drainage, sanitation, sewerage, power supply
and transport connectivity.
· To develop economically viable housing
promotion models and standards for provision of
physical, social and economic services.
· To develop suitable fiscal concessions in
collaboration with the Ministry of Finance for
promotion of housing and urban infrastructure
with special focus on EWS/LIG beneficiaries
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

£¸]¡¸ ¬¸£ˆÅ¸£ ˆÅú ž¸»¢Ÿ¸ˆÅ¸

Role of State Governments

· ©¸í£ú ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸ ÷¸¾¡¸¸£ ˆÅ£›¸¸A

· To prepare the State Urban Housing and Habitat
· ‡ˆÅúˆ¼Å÷¸ „œ¸›¸Š¸£ú ¢¨¸ˆÅ¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½ ˆ½Å ‚¢÷¸¢£Æ÷¸, ©¸í£ú Policy.
¬˜¸¸›¸ú¡¸ ¢›¸ˆÅ¸¡¸¸½¿/œ¸¾£¸¬’½’¥¸/¢›¸]¸ú ®¸½°¸/¬¸íˆÅ¸£ú ®¸½°¸/$¸¾£- · To act as a facilitator and enabler in collaboration
¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ ˆ½Å ¬¸¸˜¸ ¬¸í¡¸¸½Š¸ ¬¸½ ‡ˆÅúˆ¼Å÷¸ Š¸¿™ú-¤¸¬÷¸ú ¢¨¸ˆÅ¸¬¸ with ULBs/Parastatals/ Private Sector/Co-
œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ ‡ˆÅ ¬¸º¢¨¸š¸¸œÏ™¸÷¸¸ ‚¸¾£ ¬¸Ÿ¸˜¸ÄˆÅ¸£ú ˆ½Å operative Sector/NGOs with regard to Integrated
Slum Development Projects as well as
:i Ÿ¸½¿ ˆ¼Å÷¡¸ ˆÅ£›¸¸A
Integrated Township Development Projects.
· ¢¨¸©¸¸¥¸ ‚¸¨¸¸¬¸ú¡¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ¢¨¸ˆÅ¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸
· To ensure suitable flow of financial resources to
]¸ú¨¸›¸®¸Ÿ¸ ‚¿÷¸£¸¥¸ ¢›¸¢š¸ˆÅ£µ¸ ˆÅ£›¸½ ˆ½Å ‚¢÷¸¢£Æ÷¸, ¬¸¿ž¸¸¨¡¸ potential EWS/LIG beneficiaries as well as
‚¸¢˜¸ÄˆÅ :i ¬¸½ ˆÅŸ¸{¸¸½£ ‡¨¸¿ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä ˆ½Å ¢¥¸‡ ¢¨¸î¸ú¡¸ undertake viability gap funding of large housing
¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸ „œ¸¡¸ºÆ÷¸ œÏ¨¸¸í ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸¸A and habitat development projects. To prepare
medium term and long term strategies for
· œ¸¡¸¸Äœ÷¸ ]¸¥¸¸œ¸»¢÷¸Ä, ›¸¸¢¥¸¡¸¸½¿, Ÿ¸¥¸-]¸¥¸ ¨¡¸¨¸¬˜¸¸, ¬¸œ¸€¸ƒÄ, ˆ»Å”õ¸-
tackling problems relating to provision of
ˆÅ\¸£¸ œÏ¤¸¿š¸›¸, ¢¨¸Ô¸º÷¸ ‚¸œ¸»¢÷¸Ä ‚¸¾£ œ¸¢£¨¸í›¸ ¬¸¿¡¸¸½]¸ˆÅ÷¸¸ ˆ½Å adequate water supply, drainage, sewerage,
œÏ¸¨¸š¸¸›¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¬¸Ÿ¸¬¡¸¸‚¸½¿ ˆ½Å ¢¥¸‡ Ÿ¸š¡¸¸¨¸¢š¸ ‡¨¸¿ ™ú‹¸¸Ä¨¸¢š¸ sanitation, solid waste management, power
supply and transport connectivity.
£µ¸›¸ú¢÷¸¡¸¸¿ ÷¸¾¡¸¸£ ˆÅ£›¸¸A
· ¢¨¸ˆ½Å›Íúˆ¼Å÷¸ „÷œ¸¸™›¸ ‚¸¾£ ¬˜¸¸›¸ú¡¸ ž¸¨¸›¸ ¢›¸Ÿ¸¸Äµ¸ ¬¸¸Ÿ¸ŠÏú ˆÅú · To promote and incentivize decentralized
production and availability of local building
„œ¸¥¸¤š¸÷¸¸ ˆÅ¸ ¬¸¿¨¸š¸Ä›¸ ˆÅ£›¸¸ ‚¸¾£ œÏ¸½÷¬¸¸í›¸ ™½›¸¸A materials. To prepare and update Master Plans
· ©¸í£ú $¸£ú¤¸¸½¿ ˆ½Å ¢¥¸‡ œ¸¡¸¸Äœ÷¸ ž¸»¢Ÿ¸ ˆ½Å œÏ¸¨¸š¸¸›¸ ˆ½Å ¬¸¸˜¸ ¬¸¿¤¸¿¢š¸÷¸ along with Zonal Plans, Metropolitan Plans,
œÏ¸¢š¸ˆÅ£µ¸¸½¿ ׸£¸ ®¸½°¸ú¡¸ ¡¸¸½]¸›¸¸‚¸½¿, Ÿ¸í¸›¸Š¸£ú¡¸ ¡¸¸½]¸›¸¸‚¸½¿, ¢{¸¥¸¸ District Plans and the State level Regional Plan by
¡¸¸½]¸›¸¸‚¸½¿, £¸]¡¸-¬÷¸£ ˆÅú ®¸½°¸ú¡¸ ¡¸¸½]¸›¸¸ ˆ½Å ¬¸¸˜¸ Ÿ¸¸¬’£ œ¥¸¸›¸ the respective agencies with provision of
adequate land for urban poor.
÷¸¾¡¸¸£ ˆÅ£›¸¸ ‚¸¾£ „¬¸½ ‚Ô¸÷¸›¸ ˆÅ£›¸¸A
· To promote well designed Public-Private
· ‚¸¨¸¸¬¸ú¡¸ ‡¨¸¿ ‚¸š¸¸¢£ˆÅ œ¸¢£¡¸¸½]¸›¸¸‡¿ \¸¥¸¸›¸½ ˆ½Å ¢¥¸‡ ¬¸ºŠ¸¢“÷¸
Partnerships for undertaking housing and
¬¸¸¨¸Ä]¸¢›¸ˆÅ-¢›¸]¸ú ž¸¸Š¸ú™¸£ú ˆÅ¸ ¬¸¿¨¸š¸Ä›¸ ˆÅ£›¸¸A infrastructure projects.
· ‚¸¨¸¸¬¸ ¬¸½ ¬¸¿¤¸¿¢‹¸÷¸ ¨¡¸¢«’ ¢¨¸î¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸ˆÅ¸¬¸ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ · To encourage Cooperative Group Housing
©¸í£ú ¬˜¸¸›¸ú¡¸ ¢›¸ˆÅ¸¡¸¸½¿/œ¸¾£¸¬’½’¥¸¸½¿ ˆ½Å ¬¸¸˜¸ ž¸¸Š¸ú™¸£ú £‰¸›¸½ ˆ½Å Societies, Employees Organizations, labour
¢¥¸‡ ¬¸íˆÅ¸£ú ¬¸¸Ÿ¸»¢íˆÅ ‚¸¨¸¸¬¸ ¬¸¢Ÿ¸¢÷¸¡¸¸½¿, ˆÅŸ¸Ä\¸¸£ú ¬¸¿Š¸“›¸¸½¿, housing P romotion O rganization, Non-
Government Organizations (NGO) and
ª¢Ÿ¸ˆÅ ‚¸¨¸¸¬¸ ¬¸¿¨¸š¸Ä›¸ ¬¸¿Š¸“›¸¸½¿, $¸¾£-¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ ‚¸¾£ Community Based Organizations (CBO) to have
¬¸Ÿ¸º™¸¡¸ ‚¸š¸¸¢£÷¸ ¬¸¿Š¸“›¸¸½¿ ˆÅ¸½ œÏ¸½÷¬¸¸¢í÷¸ ˆÅ£›¸¸A Partnerships with Urban Local Bodies /
· ˆ½Å›Í ¬¸£ˆÅ¸£, £¸]¡¸ ¬¸£ˆÅ¸£, ©¸í£ú ¬˜¸¸›¸ú¡¸ ¢›¸ˆÅ¸¡¸¸½¿, Parastatals in relation to housing related
micro-finance and housing development.
¤¸ÿˆÅ¸½¿/¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ‚¸¾£ ¬¸¿ž¸¸¨¡¸ ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆ½Å ¤¸ú\¸
· To promote in-situ slum up-gradation with
ž¸¸Š¸ú™¸£ú ˆ½Å ¬¸¸˜¸ ¬¨¸¬˜¿¸¸›¸½ Š¸¿™ú-¤¸¬÷¸ú „››¸¡¸›¸ ˆÅ¸ ¬¸¿¨¸š¸Ä›¸ partnership between the Central Government,
ˆÅ£›¸¸A State Government, Urban Local Bodies,
Banks/MFIs and potential beneficiaries.
¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ž¸»¢Ÿ¸ˆÅ¸
Role of banks and housing finance institutions
· ‚œ¸›¸ú £µ¸›¸ú¢÷¸¡¸¸½¿ ˆÅ¸ œ¸º›¸À ‚¸ˆÅ¥¸›¸ ˆÅ£›¸¸ ¢]¸¬¸¬¸½ ¢ˆÅ „›í½¿
‚¸¢˜¸ÄˆÅ :i ¬¸½ ˆÅŸ¸{¸¸½£ ‚¸¾£ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ ‚¢š¸ˆÅ · Reassess their strategies with a view to make
¬¸¢ŸŸ¸¢¥¸÷¸ ¤¸›¸¸¡¸¸ ]¸¸ ¬¸ˆ½ A them more inclusive in terms of EWS and LIG
segments "Promote innovative financial

24
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

· ‚¸¨¸¸¬¸ú¡¸ ¤¸¿š¸ˆÅ ¬¸Ÿ¸¢˜¸Ä÷¸ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ‚¸¾£ Š¸¸¾µ¸ ¤¸¿š¸ˆÅ ¤¸¸{¸¸£ instruments like development of Residential
Mortgage Backed Securitization (RMBS), and
ˆ½Å ¢¨¸ˆÅ¸¬¸ ]¸¾¬¸ú ‚¢ž¸›¸¨¸ˆÅ¸£ú ¢¨¸î¸ú¡¸ ¢¥¸‰¸÷¸¸½¿ ˆÅ¸ ¬¸¿¨¸š¸Ä›¸ ˆÅ£›¸¸ A
Secondary Mortgage Market.
· $¸£ú¤¸ú £½‰¸¸ ¬¸½ ›¸ú\¸½ ‚¸¾£ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ¨¸Š¸Ä ˆ½Å
· Enhance/ strengthen the income spread of
¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆÅ¸½ ¨¸¢š¸Ä÷¸ ³œ¸ ¬¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ †µ¸ housing loans portfolio to increasingly cover BPL
¬¸»\¸ú ˆ½Å ‚¸¡¸ œÏ¬¸¸£ ˆÅ¸½ ¤¸[õ¸›¸¸/¬¸Ÿ¸˜¸Ä ˆÅ£›¸¸A and EWS beneficiaries.
· †µ¸ Ÿ¸»¥¡¸¸ˆÅ›¸ Ÿ¸¸›¸™¿”¸½¿ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ ‡ˆÅ ‚¢š¸ˆÅ ¥¸\¸ú¥¸¸ ‚¸¾£ · Adopt a more flexible and innovative approach in
relation to credit appraisal norms.
‚¢ž¸›¸¨¸ˆÅ¸£ú ´¢«’ˆÅ¸½µ¸ ‚œ¸›¸¸›¸¸A
· ¢¨¸î¸ú¡¸ „÷œ¸¸™ ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸¸ ]¸¸½ ¤¸úŸ¸¸ ˆÅ£¸›¸½ ˆ½Å ¢¥¸‡ ‚¸¢˜¸ÄˆÅ ³œ¸ · Develop financial products which encourage
EWS and LIG beneficiaries to take insurance
¬¸½ ˆÅŸ¸{¸¸½£ ‚¸¾£ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆÅ¸½ œÏ¸½÷¬¸¸¢í÷¸ cover.
ˆÅ£÷¸½ íÿA · Ploughing part of their resources towards
· Š¸¿™ú-¤¸¬÷¸ú ¬¸ºš¸¸£ ‚¸¾£ „››¸¡¸›¸ ˆÅ¸¡¸ÄÇÅŸ¸¸½¿ ˆ½Å ¢¨¸î¸œ¸¸½«¸µ¸ ˆ½Å œÏ¢÷¸ financing slum improvement and up-gradation
‚œ¸›¸½ ¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸½ ‚¸Š¸½ ¤¸[õ¸›¸¸A programmes.
· ¬¸£ˆÅ¸£ ¬¸½ „œ¸¡¸ºÆ÷¸ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸ ˆ½Å ¬¸¸˜¸ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ · Devise innovative housing finance schemes for
targeting the EWS and LIG segments, with
ˆÅŸ¸{¸¸½£ ‡¨¸¿ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ yf{kr ‚¢ž¸›¸¨¸ˆÅ¸£ú ‚¸¨¸¸¬¸ suitable subsidy support from the government.
¢¨¸î¸ ¡¸¸½]¸›¸¸‡¿ ÷¸¾¡¸¸£ ˆÅ£›¸¸A · Promote MFIs and SHGs for mobilizing savings
· ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ‚¸¾£ ¬¨¸¡¸¿¬¸½¨¸ú ¬¸¿¬˜¸¸‚¸½¿ ˆÅ¸½ ¤¸\¸÷¸ ˆÅ£›¸½ ‚¸¾£ and playing a significant role in housing finance
‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ Ÿ¸½¿ ‡ˆÅ ¬¸¸˜¸ÄˆÅ ž¸»¢Ÿ¸ˆÅ¸ ‚™¸ ˆÅ£›¸½ ˆ½Å ˆÅ¸¡¸ÄÇÅŸ¸¸½¿ ˆÅ¸ sector.
¬¸¿¨¸š¸Ä›¸ ˆÅ£›¸¸A

¤¸¸ÁƬ¸-3 À ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ À ¬¸Ÿ¸¸š¸¸›¸ ‡¨¸¿ ž¸¸¨¸ú œ¸¢£´©¡¸
· ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸ À ¡¸í £¸]¡¸
¬¸£ˆÅ¸£ ‚¸¾£ ©¸í£ú ¬˜¸¸›¸ú¡¸ ¢›¸ˆÅ¸¡¸¸½¿ ˆ½Å ¬¸¸Ÿ¸¿]¸¬¡¸ Ÿ¸½¿ ‡ˆÅ š¨¸]¸
œ¸¸½÷¸ ˆÅ¸¡¸ÄÇÅŸ¸ í¾ A ¡¸í ‡ˆÅ ‚¸½£ ÷¸¸½ ]¸¥¸¸œ¸»¢÷¸Ä, ¬¸œ¸€¸ƒÄ, Ÿ¸¥¸-]¸¥¸
›¸¸¢¥¸¡¸¸½¿ ‚¸¾£ ¬¸”õˆÅ¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¤¸º¢›¸¡¸¸™ú [¸¿\¸¸Š¸÷¸ ‚¿÷¸£¸¥¸ ˆÅ¸½
¢¨¸¨¸£µ¸ ™½›¸½ ˆ½Å ¢¥¸‡ ›¸Š¸£ ¢¨¸ˆÅ¸¬¸ ¡¸¸½]¸›¸¸ ›¸¸Ÿ¸ˆÅ ž¸¸¨¸ú ¡¸¸½]¸›¸¸‚¸½¿
ˆ½Å ‚›¸º¬¸¸£, ™½©¸ Ÿ¸½¿ 63 ›¸Š¸£¸½¿ ˆÅ¸½ ¬¸í¸¡¸÷¸¸ ™½÷¸¸ í¾ ‚¸¾£ ™»¬¸£ú ‚¸½£
‚¸¨¸¸¬¸ Ÿ¸½¿ ˆÅ¢Ÿ¸¡¸¸¿ ‚¸¾£ Ÿ¸»¥¸ž¸»÷¸ ¬¸½¨¸¸‡¿ íÿ A ‚¸¢˜¸ÄˆÅ :i ¬¸½
ˆÅŸ¸{¸¸½£ ‚¸¾£ ‚¥œ¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¬¸¸˜¸ ©¸í£ú Š¸¿™ú-¤¸¢¬÷¸¡¸¸½¿ ˆ½Å
„››¸¡¸›¸, ž¸»š¸¼¢÷¸ ˆÅú ¬¸º£®¸¸ ‚¸¾£ Ÿ¸»¥¸ž¸»÷¸ ›¸¸Š¸¢£ˆÅ ¤¸º¢›¸¡¸¸™ú [¸¿\¸¸
‚¸¾£ ¬¸½¨¸¸ ˆ½Å ¢¥¸‡ 18,000 ˆÅ£¸½”õ :i, ˆÅú ‚¢÷¸¢£Æ÷¸ ˆ½Å›Íú¡¸
¬¸í¸¡¸÷¸¸ ˆÅ¸ œÏ¸¨¸š¸¸›¸ í¾ A ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸
¢Ÿ¸©¸›¸ ˆ½Å ‚š¸ú›¸ ¬¸£ˆÅ¸£ ›¸½ 1.2 ¢Ÿ¸¢¥¸¡¸›¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸¸˜¸Ä
œ¸¢£¡¸¸½]¸›¸¸‡¿ Ÿ¸¿{¸»£ ˆÅú íÿA
· £¸«’ïú¡¸ ©¸í£ú ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸ (2007)À ž¸¸£÷¸
¬¸£ˆÅ¸£ ›¸½ £¸«’ïú¡¸ ©¸í£ú ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸, 2007 Ÿ¸½¿
‹¸¸½¢«¸÷¸ ˆÅú ƒ¬¸ ›¸ú¢÷¸ Ÿ¸½¿ ž¸»¢Ÿ¸ ˆÅú ›¡¸¸¡¸¬¸¿Š¸÷¸ ‚¸œ¸»¢÷¸Ä ‚¸¾£ ¬¸Ÿ¸¸]¸ ˆ½Å
¬¸ž¸ú ¨¸Š¸¸½Ä¿ ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ Ÿ¸»¥¡¸¸½¿ œ¸£ ‚¸ª¡¸ ‡¨¸¿ ¬¸½¨¸¸‡¿ ¬¸º¢›¸¢©\¸÷¸
ˆÅ£›¸½ ˆÅú ´¢«’ ¬¸½ ™½©¸ Ÿ¸½¿ œ¸¡¸¸Ä¨¸¸¬¸ ˆ½Å š¸¸£µ¸ú¡¸ ¢¨¸ˆÅ¸¬¸ ˆ½Å ¬¸¿¨¸š¸Ä›¸ ˆÅ¸
Box-3 Government Initiatives towards achieving
the goal of Affordable Housing for All
Government of India has taken various initiatives
towards achieving the Goal of Affordable
Housing forAll, mentioned as under:
· Jawaharlal Nehru National Urban Renewal
Mission: This is a flagship programme of the
Central Government in concert with the State
Governments and urban local bodies. It supports
63 cities across the country in terms of
perspective plans called City Development Plans
for specifying infrastructural gaps relating to
water, sanitation, sewerage, drainage and roads
on the one hand and deficiencies in housing and
basic services on the other. There is a provision
of Rs.18,000 crore of additional central
assistance for the up-gradation of urban slums
with EWS and LIG housing, tenurial security and
basic civic infrastructure and services. Under
JNNURM,Government has sanctioned projects
for construction of 1.2 million houses.
· National Urban Housing and Habitat Policy
(2007): The Government of India announced

25
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

œÏ¸¨¸š¸¸›¸ í¾ A ›¸ú¢÷¸ ˆÅ¸ Ÿ¸º‰¡¸ ¬¸¿ˆ½Å›Íµ¸ ‚.]¸¸./‚.]¸.]¸¸./¢œ¸Ž”õ½
¨¸Š¸¸½¿Ä, ‚¥œ¸ ¬¸¿‰¡¸ˆÅ¸½¿ ‚¸¾£ ©¸í£ú $¸£ú¤¸¸½¿ ]¸¾¬¸½ ¬¸Ÿ¸¸]¸ ˆ½Å ‚¬¸º£¢®¸÷¸
¨¸Š¸¸½¿Ä œ¸£ ¢¨¸©¸½«¸ ¤¸¥¸ ™½›¸½ ˆ½Å ¬¸¸˜¸ ¬¸ž¸ú ˆ½Å ¢¥¸¬¸ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅ¸
ž¸ú œÏ¸¨¸š¸¸›¸ í¾A
· ©¸í£ú $¸£ú¤¸¸½¿ ˆÅ¸½ ¤¸¬¸¸›¸½ ˆ½Å ¢¥¸‡ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸¡¸ºÆ÷¸ ¤¡¸¸]¸ ˆÅú
¡¸¸½]¸›¸¸À ƒ¬¸ ¡¸¸½]¸›¸¸ ˆÅ¸ ¥¸®¡¸ „›¸ ©¸í£ú $¸£ú¤¸¸½¿ ˆÅ¸½ ‚¸¢˜¸ÄˆÅ
¬¸í¸¡¸÷¸¸¡¸ºÆ÷¸ ¤¡¸¸]¸ ˆ½Å ¬¸¸˜¸ ‚¸¨¸¸¬¸ †µ¸ œÏ™¸›¸ ˆÅ£›¸½ ˆÅ¸ í¾,
¢]¸›¸ˆ½Å œ¸¸¬¸ ž¸»‰¸¿” ÷¸¸½ í¾ ¢ˆÅ›÷¸º ¬¨¸¡¸¿ ˆ½Å ¢¥¸‡ œ¸ÆˆÅ¸ Ÿ¸ˆÅ¸›¸ ¤¸›¸¸›¸½ ˆ½Å
¢¥¸‡ ¢›¸¢š¸¡¸¸¿ œ¸¡¸¸Äœ÷¸ ›¸íì íÿA ¡¸í ¡¸¸½]¸›¸¸ „›í½¿ ‚¸¢˜¸ÄˆÅ :i ¬¸½
ˆÅŸ¸{¸¸½£ ‚¸¾£ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ 1 ¥¸¸‰¸ :i, ÷¸ˆÅ ˆ½Å †µ¸¸½¿
œ¸£ 5 œÏ¢÷¸©¸÷¸ ¨¸¸¢«¸ÄˆÅ ˆÅú ™£ ¬¸½ ¤¡¸¸]¸ Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸ ™½÷¸ú
í¾A ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚š¸ú›¸, 1100 ˆÅ£¸½”õ :i, ˆÅú ‚¸¢˜¸ÄˆÅ
¬¸í¸¡¸÷¸¸ ¬¸½ ¬¸¿¬˜¿¸¸Š¸÷¸ ¢¨¸î¸ „“¸›¸½ ˆÅú ‚¸©¸¸ ˆÅú ]¸¸÷¸ú í¾A £¸«’ïú¡¸
‚¸¨¸¸¬¸ ¤¸ÿˆÅ ‚¸¾£ ‚¸¨¸¸¬¸ ÷¸˜¸¸ ©¸í£ú ¢¨¸ˆÅ¸¬¸ ¢›¸Š¸Ÿ¸ (픈Ÿ½) ƒ¬¸
¡¸¸½]¸›¸¸ ˆ½Å ¢¥¸‡ ˆ½Å›Íú¡¸ ›¸¸½”¥¸ ‚¢ž¸ˆÅ£µ¸ í¾A
NUHHP in 2007. This policy seeks to promote
sustainable development of habitat in the
countrywith a view to ensuring equitable supply
of land, shelter and services at affordable prices
to all sections of the society. The core focus of
the policy is provision of "Affordable Housing for
All" with special emphasis on vulnerable sections
of society such as SC / ST, backward classes,
minorities and urban poor.
· Interest Subsidy Scheme for Housing the Urban
Poor (ISHUP): This scheme aims at providing
housing loans with interest subsidy to the urban
poor who have a plot but insufficient funds for
constructing a "pucca" house for themselves.
The Scheme gives them an interest subsidy of 5
percent per annum for loans upto Rs. 1 lakh for
EWS and LIG. Under this Scheme, interest
subsidy of Rs. 1100 crore is expected to leverage
institutional finance. National Housing Bank and
HUDCO are the two central nodal agencies for
implementation of the Scheme.

2.3.2 ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸ À ¡¸í 2.3.2 Jawaharlal Nehru National Urban Renewal
Mission (JNNURM): The Jawaharlal Nehru
¢Ÿ¸©¸›¸ ©¸í£ú ¤¸º¢›¸¡¸¸™ú [¸¿\¸½ Ÿ¸½¿ ¬¸ºš¸¸£ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ Ÿ¸º‰¡¸
National Urban Renewal Mission was launched
¬¸¸š¸›¸ ˆ½Å ³œ¸ Ÿ¸½¿ 03 ¢™¬¸Ÿ¤¸£, 2005 ˆÅ¸½ ©¸º³ ˆÅú Š¸ƒÄ ˜¸ú A ¡¸í on December 3, 2005, as a main vehicle for
¢Ÿ¸©¸›¸ £¸]¡¸ ¬¸£ˆÅ¸£ ‚¸¾£ ¬˜¸¸›¸ú¡¸ ¢›¸ˆÅ¸¡¸¸½¿ ˆ½Å ¬¸¸Ÿ¸¿]¸¬¡¸ Ÿ¸½¿ ˆ½Å›Í improving urban infrastructure. JNNURM is a
¬¸£ˆÅ¸£ ˆÅ¸ ‡ˆÅ š¨¸]¸œ¸¸½÷¸ ˆÅ¸¡¸ÄÇÅŸ¸ í¾ A ¡¸í ‡ˆÅ ‚¸½£ ÷¸¸½ flagship programme of the Central Government
in concert with the state governments and urban
]¸¥¸¸œ¸»¢÷¸Ä, ¬¸œ¸€¸ƒÄ, Ÿ¸¥¸-]¸¥¸ ›¸¸¢¥¸¡¸¸½¿ ‚¸¾£ ¬¸”õˆÅ¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸
local bodies. It supports 63 cities across the
‚¸š¸¸¢£ˆÅ ‚¿÷¸£¸¥¸ ˆÅ¸½ ¢¨¸¢›¸¢™Ä«’ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ›¸Š¸£ ¢¨¸ˆÅ¸¬¸ country in terms of perspective plans called City
¡¸¸½]¸›¸¸ ›¸¸Ÿ¸ˆÅ ž¸¸¨¸ú ¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ‚›¸º¬¸¸£ œ¸»£½ ™½©¸ Ÿ¸½¿ 63 ›¸Š¸£¸½¿ ˆÅ¸½ Development Plans (CDPs) for specifying
¬¸í¸¡¸÷¸¸ ™½÷¸ú í¾ ‡¨¸¿ ™»¬¸£ú ‚¸½£ ¡¸í ‚¸¨¸¸¬¸ ‚¸¾£ œÏ¸˜¸¢Ÿ¸ˆÅ ¬¸½¨¸¸‚¸½¿ infrastructural gaps relating to water, sanitation,
sewerage, drainage and roads on the one hand
Ÿ¸½¿ °¸º¢’¡¸¸¿½ ˆÅ¸ ¬¸Ÿ¸¸š¸¸›¸ ˆÅ£÷¸ú í¾ ¡¸í ©¸í£ú ‚¢ž¸©¸¸¬¸›¸ ‚¸¾£ ©¸í£
and deficiencies in housing and basic services on
¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ˆÅ¸›¸»›¸¸½¿ Ÿ¸½¿ ¬¸ºš¸¸£ ˆÅ£›¸½ Ÿ¸½¿ ž¸ú ¬¸œ¸€¥¸ íºƒÄ í¾ ¡¸í ¢Ÿ¸©¸›¸, the other. It has also succeeded in driving
„œ¸¡¸ºÄÆ÷¸ ¢Ÿ¸©¸›¸ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ]¸ú¨¸›¸-®¸Ÿ¸÷¸¸ ‚¿÷¸£¸¥¸ ¢›¸¢š¸ˆÅ£µ¸ reforms in urban governance and urban-related
œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¬¸£ˆÅ¸£ ˆ½Å ¬¸¸˜¸ ¢›¸]¸ú ®¸½°¸ ˆÅú ž¸¸Š¸ú™¸£ú ˆÅ¸½ laws. JNNURM seeks to encourage private sector
participation with the Government providing
œÏ¸½÷¬¸¸¢í÷¸ ˆÅ£›¸½ ˆÅú Ÿ¸¸¿Š¸ ˆÅ£÷¸ú í¾ A ¢›¸¢š¸ˆÅ£µ¸ „›¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿
viability gap funding through the Mission for
ˆ½Å ¢¥¸‡ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾, ]¸í¸¿ ‰¸º¥¸ú ¢›¸¢¨¸™¸ œÏ¢ÇÅ¡¸¸ ‚¸¢˜¸ÄˆÅ ]¸ú¨¸›¸ large projects where the open tendering process
®¸Ÿ¸÷¸¸ Ÿ¸½¿ ¢¨¸¢›¸¢™Ä«’ ˆÅŸ¸ú ™©¸¸Ä÷¸ú í¾A ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ shows specific shortage in economic viability.
©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸ ˆ½Å ÷¸í÷¸ ¨¸¸¬÷¸¢¨¸ˆÅ œÏŠ¸¢÷¸ ˆ½Å œÏŸ¸º‰¸ The summary of Physical and Financial Progress
under BSUP and IHSDP (as on 19.03.2008) is as
¬¸¿ˆ½Å÷¸ˆÅ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ íÿ À-
under:

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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

chl;wih vkbZ,p,lMhih
BSUP IHSDP
vko`r jkT;ksa@ ds 'kk- izns'kksa dh la[;k No. of States/UTs covered 30 24
vko`r 'kgjks@ 'kgjh fudk;ks dh la[;k No. of cities/ ULBs covered 61 391
vko`r ifj;kstukvksa dh la[;k No. of Projects approved 274 416
ifj;kstukvksa ds fy, vuqeksfnr ykxr ¼djksM+ esa½ Total Projects Cost approved (in Rs. crore) 17421.11 3969.91
dqy ifj;kstvksa ds fy, vuqeksfnr ykxr Total Central share approved (Rs. In crore) 8761.03 2847.64
dqy vkokl bdk;ka vuqeksfnr dsUnz }kjk dqy Total Dwelling units approved 787111 257609
vuqeksfnr fgLlsnkjh

Box4 - Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
¤¸¸ÁƬ¸ -4 À ©¸í£ú $¸£ú¤¸¸½¿ ˆÅ¸½ ¤¸¬¸¸›¸½ ˆ½Å ¢¥¸‡ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸¡¸ºÆ÷¸ ¤¡¸¸]¸ ¡¸¸½]¸›¸¸
¬¸£ˆÅ¸£ ›¸½ $¸£ú¤¸¸½¿ ˆÅ¸½ ¤¸¬¸¸›¸½ ˆ½Å ¢¥¸‡ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸¡¸ºÆ÷¸ ¤¡¸¸]¸ The Government has approved an Interest
Subsidy Scheme for Housing the Urban Poor
ˆÅú ‡ˆÅ ¡¸¸½]¸›¸¸ ˆÅ¸ ‚›¸ºŸ¸¸½™›¸ ˆÅ£ ¢™¡¸¸ í¾A ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚š¸ú›¸ 5 (ISHUP). Under this Scheme, a subsidy of 5 per
œÏ¢÷¸©¸÷¸ ¨¸¸¢«¸ÄˆÅ ˆÅú ‡ˆÅ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸ 11¨¸ì ¡¸¸½]¸›¸¸ ˆ½Å ™¸¾£¸›¸ cent per annum will be given for loans up to
¢¥¸‡ Š¸‡ 100,000/-:i, ÷¸ˆÅ ˆ½Å †µ¸¸½¿ ˆ½Å ¢¥¸‡ ™ú ]¸¸‡Š¸ú Rs. 100,000/- taken during the 11th plan period.
The loan repayment period would be
†µ¸ ˆ½Å œ¸º›¸ž¸ºÄŠ¸÷¸¸›¸ ˆÅú ‚¨¸¢š¸ 15-20 ¨¸«¸Ä í¸½Š¸úA ¡¸í ¡¸¸½]¸›¸¸
15-20 years. The Scheme will leverage flow of
‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ‡¨¸¿ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å œ¸¢£¨¸¸£¸½¿ ˆ½Å ¢¥¸‡ institutional finance for the economically weaker
¬¸¿¬˜¸¸Š¸÷¸ ¢¨¸î¸ ˆÅ¸ œÏ¨¸¸í ¤¸[õ¸‡Š¸ú, ¢]¸¬¸ˆ½Å ifj.kkeLo:i section (EWS) and low income group (LIG)
‚¸Š¸¸Ÿ¸ú 4 ¨¸«¸¸½¿Ä Ÿ¸½¿ (2008-12) Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ ³ œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ segment households and result in creation of
additional housing stock of 3.10 lakh houses for
‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ 3.10 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅ¸ ‚¸¨¸¸¬¸ú¡¸ ¬’¸ÁˆÅ ¤¸›¸¸¡¸¸ EWS/LIG segments over the next 4 years
]¸¸‡Š¸¸, ¢]¸¬¸Ÿ¸½¿ ¬¸½ 2.13 ¥¸¸‰¸ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸¿ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ (2008-12) out of which 2.13 lakh dwelling units
ˆÅŸ¸{¸¸½£ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ ‚¸¾£ 0.97 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å are targeted for EWS housing and 0.97 lakh for
LIG housing. Households with monthly income
¢¥¸‡ í¸½¿Š¸½ ‡½¬¸½ œ¸¢£¨¸¸£ ¢]¸›¸ˆÅú Ÿ¸¸¢¬¸ˆÅ ‚¸¡¸ 3,300/-² œ¸‡ í¾,
of upto Rs.3,300 now revised upto Rs. 5,000 are
¡¸˜¸¸ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ¨¸Š¸Ä ¨¸Š¸úĈ¼Å÷¸ ¢ˆÅ‡ Š¸‡ íÿ, ]¸¤¸¢ˆÅ classified as EWS while those with monthly
7,300/-²œ¸‡ ˆÅú Ÿ¸¸¢¬¸ˆÅ ‚¸¡¸ ˆ½Å œ¸¢£¨¸¸£¸½¿ ˆÅ¸½ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å income between Rs. 3,301 and Rs. 7,300 now
œ¸¢£¨¸¸£ ˆÅí¸ Š¸¡¸¸ í¾A tksfd vc laa'kksf/kr lhek Øe'k% revised Rs. 5001 to 10,000 are termed LIG. The
key objective of the Scheme is to enable EWS
5000 :- rFkk 10]000 :- dj nh xbZ gSA ƒ¬¸ ¡¸¸½]¸›¸¸ ˆÅ¸ and LIG households to avail affordable housing
œÏŸ¸º‰¸ „Ó½©¡¸ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ‡¨¸¿ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å loans for purchase of house/construction of new
œ¸¢£¨¸¸£¸½¿ ˆÅ¸½ Ÿ¸ˆÅ¸›¸ ‰¸£ú™›¸½/›¸¡¸¸ Ÿ¸ˆÅ¸›¸ ¤¸›¸¸›¸½ ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ house. Loan will be available for
construction/purchase of new houses. Under the
‚¸¨¸¸¬¸ †µ¸ ˆÅ¸ ¥¸¸ž¸ „“¸›¸½ ˆ½Å ¢¥¸‡ ¬¸Ÿ¸˜¸Ä ¤¸›¸¸›¸¸ í¾ †µ¸ ›¸‡ Scheme, preference (subject to beneficiaries
Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸¸˜¸Ä „œ¸¥¸¤š¸ í¸½Š¸¸ ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚š¸ú›¸, ¨¸£ú¡¸÷¸¸ being from EWS/LIG segments) will be given to
(¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆÅ¸½ ‚¸¢˜¸ÄˆÅ ³ œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ¬¸½ í¸½›¸½ ˆ½Å Scheduled Caste, Scheduled Tribe, Minorities,
Person with disabilities and women beneficiaries
‚š¡¸š¸ú›¸) ‚›¸º¬¸»¢\¸÷¸ ]¸¸¢÷¸, ‚›¸º¬¸»¢\¸÷¸ ]¸›¸ ]¸¸¢÷¸, ‚¥œ¸
in accordance with their proportion in the total
¬¸¿‰¡¸ˆÅ¸½¿, ¢¨¸ˆÅ¥¸¸¿Š¸ ¨¡¸¢Æ÷¸¡¸¸½¿ ‚¸¾£ Ÿ¸¢í¥¸¸ ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆÅ¸½ ›¸Š¸£ ˆÅú population of city/urban agglomerate as per the
ˆºÅ¥¸ ‚¸¤¸¸™ú Ÿ¸½¿ 2001 ˆÅú ]¸›¸Š¸µ¸›¸¸ ˆ½Å ™¸¾£¸›¸ ‡ˆÅ¢°¸÷¸ í¸½›¸½ Ÿ¸½¿ 2001 census.
„›¸ˆ½Å ‚›¸ºœ¸¸÷¸ ˆ½Å ‚›¸º¬¸¸£ ™ú ]¸¸‡Š¸úA Beneficiary borrowers may choose fixed or
¥¸¸ž¸¸˜¸úÄ „š¸¸£ˆÅ÷¸¸Ä ¢¬˜¸£ ‚˜¸¨¸¸ ‚¢¬˜¸£ ™£½¿ \¸º›¸ ¬¸ˆÅ÷¸½ íÿ floating rates (the consequences clearly
explained to the borrowers by implementing

27
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(ˆÅ¸¡¸¸Ä›¨¸¡¸›¸ ‚¢ž¸ˆÅ£µ¸ ‚˜¸¸Ä÷¸Ã ¬¸¿¬˜¸¸ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸
¬¸¿¬˜¸¸›¸ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ˆÅ¸½ œ¸¢£µ¸¸Ÿ¸½¿ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ¬œ¸«’ ¤¸÷¸¸÷¸½½ íÿ)
¤¸¾ˆÅ¸½¿/‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ׸£¸ ‚¢š¸ˆÅ÷¸Ÿ¸ ‚¢÷¸¢£Æ÷¸ 1
œÏ¢÷¸©¸÷¸ ¨¸¸¢«¸ÄˆÅ ¤¡¸¸]¸ œÏž¸¸¢£÷¸ ˆÅú ]¸¸›¸½ ˆÅú ‚›¸ºŸ¸¢÷¸ ™ú ]¸¸‡Š¸úA
¡¸¢™ ¢¬˜¸£ ™£ ˆ½Å †µ¸ œÏ™¸›¸ ¢ˆÅ‡ ]¸¸÷¸½ íÿ ]¸¸½ 5 ¨¸«¸¸½Ä ¿ ˆÅú ‡ˆÅ
›¡¸»›¸÷¸Ÿ¸ ‚¨¸¢š¸ ˆ½Å ¤¸¸™ œ¸º›¸¢›¸Äš¸¸Ä¢£÷¸ ¢ˆÅ‡ ]¸¸›¸½ ˆ½Å ‚š¡¸š¸ú›¸ í¸½¿Š¸½
‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆÅ¸ ¤¸¿š¸ˆÅ œÏ¸˜¸¢Ÿ¸ˆÅ œÏ¢÷¸ž¸»¢÷¸ ˆ½Å :i Ÿ¸½¿ ¬¨¸úˆÅ¸£
¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ ÷¸˜¸¸¢œ¸, ¬¸¸Ÿ¸»¢íˆÅ Š¸¸£¿’ú ˆÅ¸½ Ž¸½”õˆÅ£ 1 ¥¸¸‰¸ :i,
÷¸ˆÅ ‚¸¾£ ¬¸¢ŸŸ¸¢¥¸÷¸ †µ¸ ˆ½Å ¢¥¸‡ ¬¸Ÿ¸˜¸ÄˆÅ œÏ¢÷¸ž¸»¢÷¸/÷¸ú¬¸£½
œ¸®¸ˆÅ¸£ ˆÅú Š¸¸£¿’ú ›¸íì í¸½Š¸ú œ¸»¨¸Äž¸ºŠ¸÷¸¸›¸ œÏž¸¸£¸½¿ œ¸£ „™ÃŠÏíµ¸ ˆÅú
‚›¸ºŸ¸¢÷¸ ›¸íì ™ú ]¸¸‡Š¸úA
¢›¸¨¸¥¸ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸»¥¡¸Š¸÷¸ (‡›¸œ¸ú¨¸ú) ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸
„š¸¸£™¸÷¸¸‚¸½¿ ˆÅ¸½ œ¸½©¸Š¸ú ‚¸¾£ °¸¾Ÿ¸¸¢¬¸ˆÅ ‚¸š¸¸£ œ¸£ ™ú ]¸¸‡Š¸ú
„š¸¸£™¸÷¸¸ ˆÅ¸½ ™ú Š¸ƒÄ ¢›¸¨¸¥¸ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸»¥¡¸Š¸÷¸ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸
„š¸¸£ˆÅ÷¸¸Ä ˆ½Å †µ¸ Ÿ¸½¿ Ÿ¸»¥¸š¸›¸ ¬¸½ ˆÅ¸’ ¥¸ú ]¸¸‡Š¸ú, ¢]¸¬¸ œ¸£ †µ¸ ˆÅú
¬¸Ÿœ¸»µ¸Ä ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ ‡ˆÅ ¬¨¸úˆ¼Å÷¸ ¢¥¸¢‰¸÷¸ ™£ ¬¸½ ˆÅ¸¡¸¸Ä›¨¸¡¸›¸
‚¢ž¸ˆÅ£µ¸ ¬¸¿¬˜¸¸ ˆÅ¸½ ÷¸¤¸ ¤¡¸¸]¸ ™½›¸¸ œ¸”õ½Š¸¸ ƒ¬¸ œ¸Ö¢÷¸ ˆ½Å ¥¸¸ž¸
¢›¸Ÿ›¸ œÏˆÅ¸£ ¬¸½ íÿ À-
· ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸¡¸ºÆ÷¸ ¤¡¸¸]¸ „š¸¸£ˆÅ÷¸¸Ä ˆÅú œÏ¬¸º¢¨¸š¸¸ ˆ½Å ¢¥¸‡ ¬¸úš¸½
œ¸½©¸Š¸ú œÏ¸½™Ãž¸»÷¸ í¸½÷¸¸ í¾ ¢]¸¬¸¬¸½ „¬¸ˆ½Å Ÿ¸»¥¸š¸›¸ ˆÅú ¤¸ˆÅ¸¡¸¸ £¸¢©¸ ˆÅŸ¸
í¸½ ]¸¸÷¸ú í¾A
· ¢ˆÅ¬¸ú ž¸ú ¥¸¸ž¸¸˜¸¸úÄ ˆ½Å ¢¥¸‡ ¬¸Ÿ¸¸›¸ Ÿ¸¸¢¬¸ˆÅ ¢ˆÅ¬÷¸ „¬¸ ¢¬˜¸¢÷¸ ˆÅú
‚œ¸½®¸¸ ˆÅŸ¸ í¸½÷¸ú í¾, ¢]¸¬¸Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸¡¸ºÆ÷¸ ¤¡¸¸]¸ °¸¾Ÿ¸¸¢¬¸ˆÅ
³œ¸ ¬¸½ †µ¸ ˆ½Å {¸¢£‡ ¬¸¿¢¨¸÷¸¢£÷¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾A
· „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ˆÅú ¬¨¸úˆÅ¸¡¸Ä÷¸¸ œ¸£ ƒ¬¸ œ¸½©¸Š¸ú ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸ ˆÅ¸
¥¸¸ž¸ˆÅ¸£ú ¬¸¿‹¸¸÷¸ ‚¸¨¸¢š¸ˆÅ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸ ž¸ºŠ¸÷¸¸›¸ ˆ½Å Ÿ¸¸Ÿ¸¥¸½
ˆÅú ‚œ¸½®¸¸ ‚¢š¸ˆÅ í¸½›¸¸ \¸¸¢í‡A „š¸¸£™¸÷¸¸ œ¸½©¸Š¸ú ¬¸Ÿ¸¸¡¸¸½]¸›¸
„œ¸¸¡¸÷¸¿°¸ ˆ½Å¨¸¥¸ œÏ©¸¸¬¸¢›¸ˆÅ ¬¸º¢¨¸š¸¸ ˆ½Å ˆÅ¸£µ¸¸½¿ ¬¸½ œ¸¬¸¿™ ˆÅ£÷¸½ íÿ
‚¢œ¸÷¸º †µ¸ ]¸¸½¢‰¸Ÿ¸ Ÿ¸»¥¡¸¸¿ˆÅ›¸ ˆÅ¸½ ¬¸º¢¨¸š¸¸]¸›¸ˆÅ ¤¸›¸¸›¸½ ˆ½Å ¢¥¸‡ ž¸ú
¡¸í ˆ½Å¨¸¥¸ ƒ¬¸ ˆÅ¸£µ¸ ¬¸½ í¾ ¢ˆÅ ‚¸¨¸¸¬¸ Ÿ¸½¿ „š¸¸£ˆÅ÷¸¸Ä ˆÅ¸ ¬¸¸Ÿ¸¸›¡¸
©¸½¡¸£ (ƒ¢Æ¨¸’ú) …œ¸£ ]¸¸÷¸¸ í¾ ‚˜¸¨¸¸ †µ¸ ¬¸½ Ÿ¸»¥¡¸ ‚›¸ºœ¸¸÷¸ ›¸ú\¸½
‚¸ ]¸¸÷¸¸ í¾ ƒ¬¸¬¸½ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ˆÅú ¨¸¼í ¨¡¸¸¢œ÷¸ ¬¸º¢¨¸š¸¸]¸›¸ˆÅ
í¸½ ]¸¸›¸ú \¸¸¢í‡A
¤¸ÿˆÅ/‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿, ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¬¸¿¤¸Ö ¢ˆÅ‡
¢¤¸›¸¸ ‚œ¸›¸½ ¬¸Ÿ¸»í ˆ½Å ¬¸™¬¡¸¸½¿ ˆÅ¸½ „š¸¸£ ™½›¸½ ˆ½Å ¢¥¸‡ $¸¾£-¬¸£ˆÅ¸£ú
¬¸¿Š¸“›¸¸½¿ ˆÅ¸½ ž¸ú ¬¸¿¤¸Ö ˆÅ£ ¬¸ˆÅ÷¸½ íÿ ¢]¸›í½¿ ¨¸½ ¬¸¿Š¸“›¸¸½¿ ‚¸¾£ ‚›¸º¨¸÷¸úÄ
ˆÅ¸£Ä¨¸¸ƒÄ ˆ½Å ‚›¸º¬¸¸£ ™ú Š¸ƒÄ ¬¸½¨¸¸‚¸½¿ ˆ½Å ¢¥¸‡ ¥¸‹¸º ¬¸½¨¸¸ ©¸º¥ˆÅ ™½
¬¸ˆÅ÷¸½ íÿ, ¢]¸¬¸ˆÅ¸ œÏ¢÷¸©¸÷¸ ¬¸¿\¸¸¥¸›¸ ¬¸¢Ÿ¸¢÷¸ ‚¨¸š¸¸¢£÷¸ ˆÅ£½Š¸úA
28
Report on Trend and Progress of Housing in India, 2008
agencies viz commercial banks and HFCs). An
additional interest of 1 per cent p.a.( maximum)
will be permitted to be charged by banks/HFCs if
fixed rate loans are extended which will be
subject to reset after a minimum period of
5 years. Mortgage of the dwelling unit will be
accepted as primary security. There would be no
collateral security/third party guarantee for loan
upto and inclusive of Rs. 1 lakh excluding group
guarantee. No levy of prepayment charges
would be permitted.
The Net Present Value (NPV) subsidy will be
given to the lenders upfront and on quarterly
basis. The NPV subsidy given to the lender will be
deducted from the principal loan amount of the
borrower, who will then have to pay interest to
the implementing agencies (IAs) at an agreed
document rate for the whole duration of the
loan. The advantages of this method are as
under:
· The interest subsidy directly accrues to the
benefit of the borrower upfront reducing his
principal outstanding amount.
· The EMI for any beneficiary type is lower than in
a situation where the interest subsidy is
disbursed through the loan period quarterly.
· The beneficial impact of this upfront subsidy on
the acceptability of borrowers should be higher
than in the case of periodical subsidy payment.
· The lenders prefer the upfront adjustment
mechanism not only for reasons of
administrative convenience but also for
facilitating credit risk evaluation. This is because
the borrower's equity in the house goes up or the
loan to value ratio comes down. This should also
facilitate greater coverage of borrowers.
Banks/HFCs can also involve NGOs for lending to
their group members without involving MFIs, to
whom they can pay a small service fee
forservices rendered in terms of organizations
and follow-up, the percentage to be determined
by the Steering Committee.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

¡¸í ¡¸¸½]¸›¸¸ 11¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ‚¨¸¢š¸ (2007-12) ˆ½Å The Scheme will close in the year 2012, which is
the last year of the 11th Five Year Plan
‚¿¢÷¸Ÿ¸ ¨¸«¸Ä 2012 Ÿ¸½¿ ¤¸¿™ í¸½ ]¸¸‡Š¸ú, ÷¸˜¸¸¢œ¸, ‚¿¢÷¸Ÿ¸ ¨¸«¸Ä Ÿ¸½¿ ¢™‡ (2007-12). However, the loans extended in the
Š¸‡ †µ¸¸½¿ ˆ½Å œ¸º›¸ž¸ºÄŠ¸÷¸¸›¸ ˆÅú ‚¨¸¢š¸ 20 ¨¸«¸Ä ÷¸ˆÅ í¸½Š¸úA last year will also have repayment period upto 20
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ‚¸¾£ ‚¸¨¸¸¬¸ ÷¸˜¸¸ ›¸Š¸£ ¢¨¸ˆÅ¸¬¸ ¢›¸Š¸Ÿ¸ ¢¥¸. years.
National Housing Bank (NHB) and Housing and
(픈Ÿ½) ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ¢¥¸‡ ˆ½Å›Íú¡¸ ›¸¸½”¥¸ ‚¢ž¸ˆÅ£µ¸ íÿ ¡¸¸½]¸›¸¸ Urban Development Corporation Ltd. (HUDCO)
œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ‚˜¸¸Ä÷¸, ¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ are the central nodal agencies for the Scheme.
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢ÇÅ¡¸¸¢›¨¸÷¸ ˆÅú ]¸¸‡Š¸úA The Scheme will be implemented through
primary lending institutions (PLIs), namely
banks and housing finance companies.

C;kt vuqnku ds izHkko ds lkFk ekfld fdLr dh de gksrh jkf'k dks fuEukuqlkj n'kkZ;k x;k gSA
The reduction in EMI after subsidy is shown as under:

†µ¸ ˆÅú £¸¢©¸ Ž»’ ¬¸½ œ¸»¨¸Ä Ÿ¸¸¢¬¸ˆÅ Ž»’ ˆ½Å ¤¸¸™ Ÿ¸¸¢¬¸ˆÅ Ž»’ ˆÅ¸ ¢›¸¨¸¥¸
†µ¸ ˆÅú ‚¨¸¢š¸ ¤¡¸¸]¸ ™£
¢ˆÅ¬÷¸ ¢ˆÅ¬÷¸ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸»¥¡¸
Loan Period Loan Amount Rate of Interest EMI before EMI after NPV of
Subsidy Subsidy Subsidy

15 ¨¸«¸Ä 1,00,000/-² . 9 œÏ¢÷¸©¸÷¸ 1014 ² . 716/-² . 29325/-² .

15 years Rs. 1,00,000 9 per cent Rs. 1014 Rs. 716 Rs. 29325

20 ¨¸«¸Ä 1,00,000/-² . 9 œÏ¢÷¸©¸÷¸ 899 /-² . 35740/-² .

20 years Rs. 1,00,000 9 per cent Rs. 899 Rs. 578 Rs. 35740

2.4 £¸]¸ˆÅ¸½«¸ú¡¸ ¢£¡¸¸¡¸÷¸¸½¿ ˆ½Å {¸¢£‡ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ 2.4 Institutional Flow of Housing Finance
through Fiscal Concession
¬¸¿¬˜¸¸Š¸÷¸ œÏ¨¸¸í 2.4.1 Fiscal concessions coupled with legislative
2.4.1 ¢¨¸š¸¸¡¸ú „œ¸¸¡¸¸½¿ ˆ½Å ¬¸¸˜¸ ]¸º”õú £¸]¸ˆÅ¸½«¸ú¡¸ ¢£¡¸¸¡¸÷¸½¿ ‚¸¨¸¸¬¸ Ÿ¸½¿ ¢›¸]¸ú measures have been initiated to encourage
¢›¸¨¸½©¸ ˆÅú ¨¸¼¢Ö ˆÅ¸½ œÏ¸½÷¬¸¸¢í÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¸£Ÿž¸ ˆÅú Š¸ƒÄ íÿA increased private investment in housing. The
existing incentives available for housing sector in
ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ®¸½°¸ ˆ½Å ¢¥¸‡ „œ¸¥¸¤š¸ ¨¸÷¸ÄŸ¸¸›¸ œÏ¸½÷¬¸¸í›¸ ¢›¸Ÿ›¸ India are as under:
œÏˆÅ¸£ ¬¸½ íÿ À- ‚¸¡¸ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ ˆÅú š¸¸£¸ 80‚¸ƒÄ¤¸ú (10) 31 Section 80IB (10) of IT Act provides 100 per cent
Ÿ¸¸\¸Ä, 2007 ¬¸½ œ¸»¨¸Ä ‚›¸ºŸ¸¸½¢™÷¸ ‚¸¨¸¸¬¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ¬¸½ ‚¸¡¸ exemption of income tax on income from
œ¸£ ‚¸¡¸ˆÅ£ Ÿ¸½¿ 100 œÏ¢÷¸©¸÷¸ Ž»’ œÏ™¸›¸ ˆÅ£÷¸ú í¾, ¤¸©¸÷¸½Ä ¢ˆÅ housing projects approved before 31st March
2007 provided project is completed within 4
œ¸¢£¡¸¸½]¸›¸¸ „¬¸ ¢¨¸î¸ ¨¸«¸Ä, ¢]¸¬¸Ÿ¸½¿ ¡¸í Ÿ¸¿{¸»£ ˆÅú Š¸ƒÄ ˜¸ú, ˆ½Å ‚¿¢÷¸Ÿ¸ years from the last day of the financial year in
¢™›¸ ¬¸½ \¸¸£ ¨¸«¸¸½¿Ä ˆ½Å ž¸ú÷¸£ œ¸»£ú í¸½ ]¸¸÷¸ú í¾A which it was sanctioned.
ˆÅ. œ¸¢£¡¸¸½]¸›¸¸ ‡ˆÅ ‡ˆÅ”õ ˆ½Å ›¡¸»›¸÷¸Ÿ¸ ž¸»‰¸¿” œ¸£ ˜¸úA a. Project was on a minimum plot area of one acre.
b. Maximum built up area of residential unit was
‰¸. ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒÄ ˆÅ¸ ‚¢š¸ˆÅ÷¸Ÿ¸ ¢›¸¢Ÿ¸Ä÷¸ ®¸½°¸ ¢™¥¥¸ú, Ÿ¸ºŸ¤¸ƒÄ ˆ½Å ¢¥¸‡
1000 sq ft. for Delhi & Mumbai and 1500 sq. ft.
1000 ¨¸Š¸Äœ¸€ú’ ‚¸¾£ ‚›¡¸ ¬˜¸¸›¸¸½¿ ˆ½Å ¢¥¸‡ 1500 ¨¸Š¸Äœ¸€ú’ ˜¸¸A for other places.
Š¸. ™ºˆÅ¸›¸¸½¿ ‚¸¾£ ‚›¡¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸ ¢›¸¢Ÿ¸Ä÷¸ ®¸½°¸ (¢›¸¢Ÿ¸Ä÷¸ c. Built up area of shops and other commercial
establishment was 5 per cent of built up area or
®¸½°¸) ˆÅ¸ 5 œÏ¢÷¸©¸÷¸ ‚˜¸¨¸¸ 2000 ¨¸Š¸Äœ¸€ú’A 2000 sq. ft. whichever is less.

29
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
š¸¸£¸ 80¬¸ú ‚¸¨¸¸¬¸ †µ¸ ˆ½Å Ÿ¸»¥¸š¸›¸ ¬¸¢í÷¸ ¢¨¸¢ž¸››¸
ž¸ºŠ¸÷¸¸›¸¸½¿/]¸Ÿ¸¸£¸¢©¸¡¸¸½¿ œ¸£ 1 ¥¸¸‰¸ ²œ¸‡ ˆÅú ˆÅ’¸¾÷¸ú ˆÅú ‚›¸ºŸ¸¢÷¸
™½÷¸ú í¾A
‚¸¡¸ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ ˆÅú š¸¸£¸ 24 À ‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£ ¤¡¸¸]¸ ˆ½Å
ž¸ºŠ¸÷¸¸›¸ ˆ½Å Ÿ¸Ó½ ˆÅ’¸¾÷¸ú ž¸¸’ˆÅ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆ½Å ¢¥¸‡ 100
œÏ¢÷¸©¸÷¸ ‚¸¾£ ¬¨¸¸Ÿ¸ú ˆ½Å ˆÅ¤{¸¸š¸ú›¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢¥¸‡ 1.5 ¥¸¸‰¸ ² œ¸‡
‚¸¡¸ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ ˆÅú š¸¸£¸ 54 À ‚¸¨¸¸¬¸ú¡¸ ¬¸¿œ¸¢î¸ ˆ½Å
‚¿÷¸£µ¸ œ¸»¿]¸úŠ¸÷¸ ‚¢ž¸¥¸¸ž¸ ¡¸¢™ ‡ˆÅ ‚¸¨¸¸¬¸ú¡¸ Ÿ¸ˆÅ¸›¸ ‚¢š¸ŠÏíµ¸
Ÿ¸½¿ ¢›¸¨¸½©¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾, ÷¸¤¸ ¡¸í ‚¸¡¸ˆÅ£ ¬¸½ Ÿ¸ºÆ÷¸ í¾A
‚¸¡¸ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ ˆÅú š¸¸£¸ 36(1) (viii) ˆ½Å ‚š¸ú›¸
™ú‹¸¸Ä¨¸¢š¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å ‚¸¨¸¸¬¸ ¨¡¸º÷œ¸››¸ ¥¸¸ž¸ ˆÅ¸
20 œÏ¢÷¸©¸÷¸ ‚¸¡¸ ¬¸½ ˆÅ¸’ ¢¥¸¡¸¸ ]¸¸÷¸¸ í¾, ¤¸©¸÷¸½Ä ¢ˆÅ ƒ¬¸½ ¢¨¸©¸½«¸
‚¸£¢®¸÷¸ ˆÅ¸½«¸ Ÿ¸½¿ ¥¸½ ]¸¸¡¸¸ ]¸¸÷¸¸ í¾ 1994-95 ¬¸½ œ¸»¨¸Ä, ¡¸í ˆºÅ¥¸
‚¸¡¸ ˆÅ¸ 40 œÏ¢÷¸©¸÷¸ íº‚¸ ˆÅ£÷¸¸ ˜¸¸ ‚¸¾£ „¬¸ˆ½Å ¤¸¸™ 2006-07
÷¸ˆÅ ¡¸í ™ú‹¸¸Ä¨¸¢š¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸½ ‚¸¡¸ ˆÅ¸ 40 œÏ¢÷¸©¸÷¸ íº‚¸
ˆÅ£½Š¸¸A
2.5 ‚¸¨¸¸¬¸ ‡¨¸¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ¢¥¸‡ ¢¨¸¢ž¸››¸
ˆÅŸ¸½¢’¡¸¸¿ À ¬¸¿¬÷¸º¢÷¸¡¸¸½¿ ˆÅ¸ ¬¸¸£¸¿©¸ A
2.5.1 ¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œ¸£ „\\¸-¬÷¸£ú¡¸ ˆÅ¸¡¸Ä¤¸¥¸ (™úœ¸ˆÅ
œ¸¸£½‰¸ ¬¸¢Ÿ¸¢÷¸) ¬¸£ˆÅ¸£ ›¸½ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆ½Å ¢¨¸¢ž¸››¸ œ¸í¥¸º‚¸½¿ ˆÅú
]¸¸¿\¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ªú ™úœ¸ˆÅ œ¸¸£½‰¸ ˆÅú ‚š¡¸®¸÷¸¸ Ÿ¸½¿ ‡ˆÅ ˆÅ¸¡¸Ä™¥¸
Š¸¢“÷¸ ˆÅ£›¸½ ˆÅ¸ ¢¨¸¢›¸©\¸¡¸ ¢ˆÅ¡¸¸ ˜¸¸A ƒ¬¸ ¬¸¢Ÿ¸¢÷¸ ˆÅú Ÿ¸º‰¡¸
¢¬¸œ¸€¸¢£©¸½¿ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ íÿ À-
· "¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸" ¬¸¸¨¸Ä]¸¢›¸ˆÅ ›¸ú¢÷¸ ˆ½Å ˆ½Å›Í Ÿ¸½¿ £‰¸¸ ]¸¸‡ A
· ž¸¸£÷¸ ]¸¾¬¸½ ¢¨¸©¸¸¥¸ ‚¸¾£ ¢¨¸¢¨¸š¸÷¸¸œ¸»µ¸Ä ™½©¸ ˆ½Å ¢¥¸‡, "‡ˆÅ ‚¸¨¸¸¬¸
¬¸¤¸ˆ½Å ¢¥¸‡ „œ¸¡¸ºÆ÷¸ í¸½÷¸¸ í¾", ˆÅú ¬¸¿ˆÅ¥œ¸›¸¸ ˆÅ¸ œÏ¡¸¸½Š¸ ˆÅ£÷¸½ íº‡,
¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú ˆÅ¸½ƒÄ œ¸¢£ž¸¸«¸¸ ¢›¸¡¸÷¸ ˆÅ£›¸½ ˆÅ¸ ˆÅ¸½ƒÄ ž¸ú œÏ¡¸÷›¸
œÏ¢÷¸ „÷œ¸¸™ˆÅ í¾ ÷¸˜¸¢œ¸, ˆÅ¸¡¸Ä™¥¸ ›¸½ ƒ¬¸ œÏ¡¸¸½]¸›¸¸˜¸Ä ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸
œ¸¾£¸Ÿ¸ú’£ ¬¸º^¸¸‡ íÿ À-
30
Report on Trend and Progress of Housing in India, 2008
Section 80 C allows deduction upto Rs. 1 lakh
on various payments/deposits including principal
amount of housing loan., besides savings in
eligible tax saving instruments.
Section 24 of IT Act Deduction on account of
interest payment on housing loans is 100 per
cent for rented dwelling units and Rs. 1.5 lakh for
owner occupied houses.
Section 54 of IT Act Capital gain from transfer
of residential property if invested in acquiring
one residential house is exempt from income tax.
U/s 36(1) (viii) of IT Act 20 per cent of profit
derived from business of providing long term
housing finance is deducted from income
provided it is carried to special reserve. Before
1994-95 it used to be 40 per cent of total income
and after that up to 2006-2007 it used to be 40
per cent of income from long term housing
finance.
2.5 Various Committees on Housing
and Housing Finance: Summary of
Recommendations
2.5.1 High Level Task Force on Affordable Housing for
All (Deepak Parekh's Committee): The
Government set up a Task Force under the
Chairmanship of Shri Deepak Parekh to look into
various aspects of affordable housing. The main
recommendations of the Committee are:
· Affordable Housing" is put at the centre of
public policy.
· Any attempt to fix a definition of affordable
housing for a country as large and diverse as
India, using the concept of "one-size-fits-all" is
counter-productive. However, the Task Force has
suggested the following parameters for the
purpose:
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä Ÿ¸š¡¸ ‚¸¡¸ ¨¸Š¸Ä

EWS/LIG MIG

‚¸ˆÅ¸£ 300- 600 ¨¸Š¸Äœ¸€ú’ ˆÅ¸ ˆÅ¸£œ¸½’ ®¸½°¸ 1200 ¨¸Š¸Äœ¸€ú’ ¬¸½ ‚›¸¢š¸ˆÅ ˆÅ¸ ˆÅ¸£œ¸½’ ®¸½°¸
Size 300 600 sq. ft carpet area Not exceeding 1200 sq. ft. carpet area

¥¸¸Š¸÷¸ œ¸¢£¨¸¸£ ˆÅú ¬¸ˆÅ¥¸ ¨¸¸¢«¸ÄˆÅ ‚¸¡¸ ˆ½Å 4 Š¸ºµ¸¸ ¬¸½ ‚¢š¸ˆÅ ›¸íì œ¸¢£¨¸¸£ ˆÅú ¬¸ˆÅ¥¸ ¨¸¸¢«¸ÄˆÅ ‚¸¡¸ 5 Š¸ºµ¸¸ ¬¸½ ‚›¸¢š¸ˆÅ
Cost Not exceeding 4 times household gross annual income Not exceeding 5 times household gross annual income

Ÿ¸¸¢¬¸ˆÅ ¢ˆÅ¬÷¸/¢ˆÅ£¸¡¸¸ ¬¸ˆÅ¥¸ Ÿ¸¸¢¬¸ˆÅ ‚¸¡¸ ˆ½Å 30 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ›¸íì ¬¸ˆÅ¥¸ Ÿ¸¸¢¬¸ˆÅ ‚¸¡¸ ˆ½Å 40 œÏ¢÷¸©¸÷¸ ¬¸½ ‚›¸¢š¸ˆÅ
EMI/Rent Not exceeding 30 per cent of gross monthly income Not exceeding 40 per cent of gross monthly income

›¸¸½’ À ˆÅ¸¡¸Ä™¥¸ 5 ¬¸™¬¡¸¸½¿ ˆ½Å œ¸¢£¨¸¸£ ˆÅú ˆÅ¥œ¸›¸¸ ˆÅ£÷¸¸ í¾

Note: The Task Force visualises the size of the household as five members.

i) ¬¸£ˆÅ¸£ „œ¸¡¸ºÄÆ÷¸ ˆ½Å ‚¸š¸¸£ œ¸£ œ¸¢£¨¸¸£¸½¿ ˆÅú ¬¸¿‰¡¸¸ ˆÅ¸ ‚›¸ºŸ¸¸›¸ i) Government may undertake a separate
exercise to estimate the number of households
¥¸Š¸¸›¸½ œ¸£ ‡ˆÅ œ¸¼˜¸ˆÅ ‚ž¡¸¸¬¸ ˆÅ£ ¬¸ˆÅ÷¸ú í¾A
on the basis of above.
ii) ‚¸¨¸¸¬¸ œ¸£ £¸«’ïú¡¸ ÷¸˜¸¸ £¸]¡¸ ¬÷¸£ œ¸£ ©¸º³ ‚¸¾£ œ¸»£½ íº‡ ‚¸¿ˆÅ”õ½ ii) Data on housing starts and completions at the
÷¸º£›÷¸ „œ¸¥¸¤š¸ ˆÅ£¸‡ ‚¸¾£ ‡ˆÅ ¬¸¿¬˜¸¸Š¸÷¸ ¬¸¿£\¸›¸¸ ˆ½Å {¸¢£‡ national and state level be readily made available
¬¸¿ŠÏíú÷¸ ¢ˆÅ‡ ]¸¸ ¬¸ˆÅ÷¸½ íÿA and may be collected through an institutional
structure.
iii) ž¸»¢Ÿ¸ ‚¢š¸ŠÏíµ¸ ‚¸¾£ ©¸í£ú „œ¸¡¸¸½Š¸ ˆ½Å ¢¥¸‡ ˆ¼Å¢«¸ ˆ½Å ¬¸¿œ¸¢£¨¸÷¸Ä›¸ ˆ½Å
iii) Additional lands may be brought into urban usage
¢¥¸‡ ¢ÇÅ¡¸¸ ¢¨¸¢š¸¡¸¸½¿ ‚¸¾£ œÏ¢ÇÅ¡¸¸‚¸½¿ ˆÅ¸½ ¬¸£¥¸ ¤¸›¸¸ˆÅ£ ¢›¸¡¸¢Ÿ¸÷¸ ‚¸š¸¸£ on a regular basis by simplifying procedures and
œ¸£ ‚¢÷¸¢£Æ÷¸ ž¸»¢Ÿ¸ ˆÅ¸½ ©¸í£ú „œ¸¡¸¸½Š¸ Ÿ¸½¿ ¥¸¸¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A processes for land acquisition and conversion of
agricultural lands for urban use.
iv) ‚¢š¸£\¸›¸¸ Ÿ¸½¿ ¢›¸¨¸½©¸ ˆ½Å ¬¸Ÿ¸¸›¸ºœ¸¸¢÷¸ˆÅ ¢ž¸››¸-¢ž¸››¸ ‚¸ˆÅ¸£¸½¿ ˆ½Å
iv) Upward revision in the Floor Area Ratio
›¸Š¸£¸½¿ Ÿ¸½¿ ÷¸¥¸ ®¸½°¸ ‚›¸ºœ¸¸÷¸ (‡œ¸€‡‚¸£)/÷¸¥¸ ¬˜¸¸›¸ ¬¸»\¸ˆÅ¸¿ˆÅ
(FAR)/Floor Space Index (FSI), across cities of
(‡œ¸€‡¬¸‚¸ƒÄ) Ÿ¸½¿ …š¨¸¸ÄŠ¸¸Ÿ¸ú ¬¸¿©¸¸½š¸›¸ í¾, ]¸¸½ ƒ¬¸½ ‚¢›¸¨¸¸¡¸Ä different sizes commensurate with investment in
¤¸›¸¸ ™½Š¸¸A infrastructure.
v) ¢¨¸¬÷¸¼÷¸ ¢¨¸¨¸½¢\¸÷¸ ¡¸¸½]¸›¸¸ ÷¸¾¡¸¸£ ˆÅ£›¸¸ ]¸¸½ Š¸í›¸ ¬¸¸Ÿ¸»¢íˆÅ ¢¨¸ˆÅ¸¬¸ v) Develop detailed critical space plans, which
incorporate infrastructure intensive cluster
Ÿ¸½¿ ¤¸º¢›¸¡¸¸™ú [¸¿\¸½ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£÷¸ú í¾A
development.
vi) „›¸ ¨¡¸¢Æ÷¸¡¸¸½¿ œ¸£ ¬¸¿‹¸¸÷¸ ©¸º¥ˆÅ ¥¸Š¸¸‡¿ ]¸¸½ „\\¸÷¸£ vi) Impose an impact fee on those benefiting from
‡œ¸€‡‚¸£À‡œ¸€‡¬¸‚¸ƒÄ ¬¸½ ¥¸¸ž¸¸¢›¨¸÷¸ í¸½ £í½ íÿA higher FAR/FSI.
vii) In-situ development on public lands for
vii) ¬¸£ˆÅ¸£ ˆÅú ž¸¸Š¸ú™¸£ú Ÿ¸½¿ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ú¡¸ ¢¨¸«¸¡¸¸½¿ ˆ½Å ¬¸Ÿ¸¸š¸¸›¸ ˆ½Å
addressing affordable housing issues in
¢¥¸‡ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ž¸»¢Ÿ¸ œ¸£ ‡¨¸¿ ¬˜¸¸›¸½ ¢¨¸ˆÅ¸¬¸A partnership with the Government.
viii) ‚¸¨¸¸¬¸ú¡¸ ¤¸¸{¸¸£ œ¸£ ™¤¸¸¨¸ ¬¸½ Ÿ¸º¢Æ÷¸ ˆ½Å ¢¥¸‡ ‡ˆÅ ‚¸¨¸©¡¸ˆÅ ‚¸¾£ viii) 'Security of tenure' be recognised as an
‚¢ž¸››¸ ¬¸¸š¸›¸ ˆ½Å :i Ÿ¸½¿ "œ¸Ø½™¸£ú ˆÅú œÏ¢÷¸ž¸»¢÷¸" ¬¨¸úˆÅ¸£ ˆÅú important and integral tool for relieving
pressures on the housing market. This may be
]¸¸‡A ¡¸í ¤¸¬¸¸œ¸÷¸ ˆ½Å ¢›¸¡¸¢Ÿ¸¢÷¸ˆÅ£µ¸, ¬¸¸Ÿ¸º™¸¢¡¸ˆÅ ‚˜¸¨¸¸
undertaken through regularisation of
¬¸íˆÅ¸£ú ¬¨¸¸¢Ÿ¸÷¨¸, œ¸Ø¸Š¸÷¸ œÏ¢÷¸ž¸»¢÷¸, ‚¢š¸ˆÅ¸£¸½¿ ˆ½Å œÏ¡¸¸½Š¸ ˆ½Å settlements, community or cooperative
Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾, ]¸¸½ ¬¨¸¬˜¸¸›¸½ ¢¨¸ˆÅ¸¬¸ í¸½›¸½ ™½÷¸¸ í¾A ownership, security via lease, use rights, which
enables in-situ development to take place.

31
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
ix) Hkwfe laoaf/kr lalqfr;ksa ;kfu fd vfrfjDr Hkwfe tqVkuk] ,Q
, vkj@,Q ,l vkbZ dk foLrkj.k la'kks/ku rFkk
Lo&LFkku fodkl dks la;qDr :i ls fØ;kfUor fd;k
tkuk pkfg,A
x) ž¸»ˆÅ£ (Ÿ¸¸›¸¢\¸°¸¸½¿) ˆ¿Åœ¡¸»’£úˆ¼Å÷¸ ž¸»¢Ÿ¸ ‚¢ž¸¥¸½‰¸ ‚¸¾£ ž¸»¢Ÿ¸ ˆ½Å
¥¸½›¸™½›¸ ˆ½Å ¢¥¸‡ ƒÄ-‚¢ž¸©¸¸¬¸›¸ ˆ½Å œÏ¡¸¸½Š¸ ˆ½Å {¸¢£‡ ¥¸½›¸™½›¸ ˆÅú Š¸¢÷¸
¤¸[õ¸›¸¸A
xi) ©¸í£ú ž¸»¢Ÿ¸ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£ˆ½Å ¢¨¸«¸¡¸¸½¿ ˆÅú ª½µ¸ú ˆÅú ]¸¸¿\¸ ˆÅ£›¸½ ˆ½Å
¢¥¸‡ ‡ˆÅ ¨¡¸¸¨¸¬¸¸¢¡¸ˆÅ ‚š¡¸¡¸›¸ ˆÅ¸ ˆÅ¸¡¸Ä ¬¸¸ÿœ¸›¸¸ ‚¸¾£ ‡ˆÅ ¨¡¸¸œ¸ˆÅ
™ú‹¸¸Ä¨¸¢š¸ ©¸í£ú ž¸»¢Ÿ¸ ›¸ú¢÷¸ ˆÅú ¢¬¸œ¸€¸¢£©¸ ˆÅ£›¸¸ œ¸¡¸¸Ä¨¸£µ¸ú¡¸
¬¸£¸½ˆÅ¸£¸½¿ ˆ½Å í¸½÷¸½ íº‡, "š¸¸£µ¸ú¡¸" œ¸Ö¢÷¸¡¸¸¿ ¤¸›¸¸ƒÄ ]¸¸›¸½ ˆÅú
‚¸¨¸©¡¸ˆÅ÷¸¸ í¾A
xii) ‡ˆÅ ‡½¬¸¸ œ¸¡¸¸Ä¨¸£µ¸ ¢ˆÅ¡¸¸ ]¸¸›¸½ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸ í¾ ¢]¸¬¸Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ
³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä ˆ½Å ¢¥¸‡ ž¸¸’ˆÅ ‚¸¨¸¸¬¸ Ÿ¸½¿ ¢›¸¨¸½©¸
ˆÅ£›¸¸ ‡ˆÅ ¥¸¸ž¸œÏ™ ˆÅ¸¡¸Ä í¸½Š¸¸A
xiii) ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸Š¸÷¸ ¢›¸¢š¸¡¸¸¿
¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅ½ ¢¥¸‡ 100 œÏ¢÷¸©¸÷¸ ¤¸[õ¸›¸¸ ‚¸¾£ ¢›¸¢š¸¡¸¸½¿ ˆ½Å ‡ˆÅ
ž¸¸Š¸ ˆÅ¸ „œ¸¡¸¸½Š¸ $¸£ú¤¸ ©¸í£ú œ¸¢£¨¸¸£¸½¿ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ˆ½Å œÏ÷¡¸®¸
œÏ¸¨¸š¸¸›¸ ˆ½Å ¢¥¸‡ ˆÅ£›¸¸A
xiv) ¢›¸¢š¸¡¸¸½¿ ˆ½Å ‡ˆÅ ž¸¸Š¸ ˆÅ¸ „œ¸¡¸¸½Š¸ $¸¾£-¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ ‚¸¾£
¬¸Ÿ¸º™¸¡¸ ‚¸š¸¸¢£÷¸ ¬¸¿Š¸“›¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢ˆÅ‡ ]¸¸›¸½ ¨¸¸¥¸½ ¬¨¸¬˜¸¸›¸½
¢¨¸ˆÅ¸¬¸ ˆ½Å ¢¥¸‡ œ¸»£ˆÅ ˆ½Å ³œ¸ Ÿ¸½¿ ¢ˆÅ¡¸¸ ]¸¸‡A
xv) ˆ½Å›Í ¬¸£ˆÅ¸£ ˆ½Å ¬¸ž¸ú ˆÅ£¸½¿ œ¸£ 0.5 œÏ¢÷¸©¸÷¸ ˆÅ¸ ‡ˆÅ „œ¸-ˆÅ£ ‡ˆÅ
¬¸Ÿ¸¢˜¸Ä÷¸ ‚¸ª¡¸ ˆÅ¸½«¸ Ÿ¸½¿ ]¸Ÿ¸¸ ¢ˆÅ¡¸¸ ]¸¸‡A ƒ¬¸ ˆÅ¸½«¸ ˆÅ¸ œÏ¤¸¿š¸
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ ¬¸Ÿ¸¸›¸ £¸¢©¸ ˆÅú ¤¸]¸’ú¡¸ ¬¸í¸¡¸÷¸¸ ¬¸½
¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ ¢]¸¬¸¬¸½ ¢ˆÅ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œ¸£ ™ú‹¸¸Ä¨¸¢š¸ ¬¸¿‹¸¸÷¸
¤¸›¸¸¡¸¸ ]¸¸ ¬¸ˆ½ÅA
vi) ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ™ú‹¸¸Ä¨¸¢š¸ ¤¸¸íḠ¨¸¸¢µ¸¢]¡¸ˆÅ „š¸¸£ ¥¸½›¸½
¨¸¸¥¸½ ¤¸¸{¸¸£ Ÿ¸½¿ œ¸íº¿\¸›¸½ ˆ½Å ¢¥¸‡ ‚›¸º±¸¸ ™ú ]¸¸‡ Æ¡¸¸½¿¢ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸
¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ¢¥¸‡ ˆÅŸ¸ ¬¸½ ˆÅŸ¸ ¬¸¿ž¸¨¸ ¥¸¸Š¸÷¸ œ¸£ ™ú‹¸¸Ä¨¸¢š¸ ¢›¸¢š¸ˆÅ£µ¸
踸½÷¸ ‚¸¨¸©¡¸ˆÅ í¾ ¢]¸¬¸¬¸½ ¢ˆÅ ¨¸½ ƒ¬¸½ ‚¿¢÷¸Ÿ¸ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ÷¸ˆÅ
œ¸íº¿\¸¸ ¬¸ˆ½¿ÅA
xvii) £¸]¡¸ ‚¸¨¸¸¬¸ œ¸¢£«¸™¸½¿ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ œ¸º›¸À ÷¸¾¡¸¸£ ˆÅú ]¸¸‡Š¸ú ‚¸¾£
œ¸¢£«¸™¸½¿ ˆÅ¸½ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆ½Å œÏ¸¨¸š¸¸›¸ Ÿ¸½¿ ‚¢š¸ˆÅ ¬¸¢ÇÅ¡¸ ž¸»¢Ÿ¸ˆÅ¸
‚™¸ ˆÅ£›¸½ œ¸£ š¡¸¸›¸ ¬¸ˆ½Å¢›Í÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¸½÷¬¸¸¢í÷¸ ¢ˆÅ¡¸¸
]¸¸‡Š¸¸, ž¸¥¸½ íú ¡¸í ¬¸¸¨¸Ä]¸¢›¸ˆÅ ¢›¸]¸ú ž¸¸Š¸ú™¸£ú ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ í¾A
32
Report on Trend and Progress of Housing in India, 2008
ix) The recommendations on land related issues i.e.
bringing in additional lands, upward revision in
the FAR/FSI and in-situ development have to be
implemented in an integrated manner.
x) Improve the speed of transactions through
cadastrals, computerised land records and
application of e-governance to land transactions.
xi) Commission a professional study. to examine the
range of issues covering urban land and
recommend a comprehensive, long-term urban
land policy. Given the environmental concerns,
“sustainable” methodologies need to be
developed.
xii) Need to foster an environment that would make
rental housing for EWS/LIG categories a
worthwhile activity to invest in.
xiii) Increase JNNURM funds for affordable housing
by 100 percent and a part of the funds be used
for direct provisioning of housing for poor urban
households.
xiv) A part of the fund be also used as supplements
for in-situ development to be routed through the
Non-Government Organisations (NGOs) and
Community Based Organisations (CBOs).
xv) A cess of 0.5 percent on all central government
taxes be credited to a dedicated Shelter Fund, to
be managed by the National Housing Bank, with
a budgetary support of equal amount, so as to
make a long-term impact on affordable housing.
xvi) Permit housing finance institutions (HFIs) to
access long-term External Commercial
Borrowing (ECB) market, since the HFIs require
long-term funding sources at the lowest cost
possible to pass on to the ultimate borrowers.
xvii) Role of State Housing Boards be revamped and
the Boards be encouraged to focus on playing a
more active role in the provision of affordable
housing, even if it is through public private
partnerships.
xviii) Funds raised through the sale of land
transactions by State Housing Boards must be
ring fenced, with a defined proportion to be
redeployed only for affordable housing.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

xviii) £¸]¡¸ ‚¸¨¸¸¬¸ œ¸¢£«¸™¸½¿ ׸£¸ ž¸»¢Ÿ¸ ˆÅú ¥¸½›¸™½›¸Š¸÷¸ ¢¤¸ÇÅú ˆ½Å {¸¢£‡ xix) Modifications in Income Tax Act for HFCs and
]¸º’¸ƒÄ Š¸ƒÄ ¢›¸¢š¸¡¸¸½¿ ˆÅ¸½ ˆ½Å¨¸¥¸ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ Ÿ¸½¿ œ¸º›¸À œ¸¢£¢›¸¡¸¸½¢]¸÷¸ developers engaged in affordable housing
ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ ¢›¸¢©\¸÷¸ ‚›¸ºœ¸¸÷¸ ˆ½Å ¬¸¸˜¸ ‡ˆÅ ¬¸º£¢®¸÷¸ ‹¸½£½ Ÿ¸½¿ projects.
£‰¸¸ ]¸¸›¸¸ \¸¸¢í‡A xx) Reduction in stamp duty rates and registration
xix) ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿, ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ Ÿ¸½¿ ¥¸Š¸½ fee for affordable housing to 2% ad valorem
¢¨¸ˆÅ¸¬¸ˆÅ¸½¿ ˆ½Å ¢¥¸‡ ‚¸¡¸ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ Ÿ¸½¿ ‚¸©¸¸½š¸›¸A uniformly in all states.
xxi) Levy a flat charge of Rs. 1,000 on registration of
xx) ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ Ÿ¸ºÍ¸¿ˆÅ ‚¸¾£ œ¸¿]¸úˆÅ£µ¸ ©¸º¥ˆÅ ¬¸ž¸ú £¸]¡¸¸½¿
equitable mortgages.
Ÿ¸½¿ ‡ˆÅ ¬¸Ÿ¸¸›¸ ³œ¸ ¬¸½ ¡¸˜¸¸Ÿ¸»¥¡¸ 2% ˆÅŸ¸ ¢ˆÅ¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A xxii) Bring “affordable housing” under the
xxi) ¬¸¸¢Ÿ¡¸ˆÅ ¤¸¿š¸ˆÅ¸½¿ ˆ½Å œ¸¿]¸úˆÅ£µ¸ œ¸£ 1000/-:i, ˆÅ¸ ‡ˆÅ ¬¸Ÿ¸¸›¸ infrastructure definition.
œÏž¸¸£ „™ÃŠÏíú÷¸ ˆÅ£›¸¸A xxiii) Establish a housing finance company focusing
xxii) ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅ¸½ ¤¸º¢›¸¡¸¸™ú [¸¿\¸¸Š¸÷¸ œ¸¢£ž¸¸«¸¸ Ÿ¸½¿ ¥¸¸›¸¸A only on housing micro-finance loans.
xxix) Promote household savings in the informal
xxiii) ˆ½Å¨¸¥¸ ‚¸¨¸¸¬¸ú¡¸ ¨¡¸¢«’ ¢¨¸î¸ †µ¸¸½¿ œ¸£ š¡¸¸›¸ ™½›¸½ ¨¸¸¥¸ú ‚¸¨¸¸¬¸
sector
¢¨¸î¸ ˆ¿Åœ¸›¸ú ¬˜¸¸¢œ¸÷¸ ˆÅ£›¸¸A
xxv) A low-rise high-density built form is
xxix) ‚¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ Ÿ¸½¿ œ¸¢£¨¸¸£ ˆÅú ¤¸\¸÷¸ ˆÅ¸ ¬¸¿¨¸š¸Ä›¸ ˆÅ£›¸¸A recommended as an appropriate measure for
xxv) ˆÅŸ¸ …¿\¸½ ‚¸¾£ ‚¢š¸ˆÅ ‹¸›¸½ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸ ˆÅú ¢¬¸œ¸€¸¢£©¸ ¢›¸Ÿ›¸ upgrading, redevelopment or construction of
‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ „››¸¡¸›¸, œ¸º›¸¢¨¸ÄˆÅ¸¬¸ ‚˜¸¨¸¸ ‚¸¨¸¸¬¸ú¡¸ housing projects for the lower income groups.
œ¸¢£¡¸¸½]¸›¸¸ ˆ½Å ¢›¸Ÿ¸¸Äµ¸¸˜¸Ä ‡ˆÅ ¬¸Ÿ¸º¢\¸÷¸ „œ¸¸¡¸ ˆ½Å ³œ¸ Ÿ¸½¿ ˆÅú ]¸¸÷¸ú í¾A xxvi) The real estate should be regulated through a
xxvi) ž¸» ¬¸¿œ¸™¸ ¢ˆÅ¬¸ú ¢›¸¡¸¸Ÿ¸ˆÅ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢¨¸¢›¸¡¸¢Ÿ¸÷¸ ˆÅú ]¸¸›¸ú \¸¸¢í‡ regulator and pending the legislative process for
‚¸¾£ £¸]¡¸¸½¿ Ÿ¸½¿ ž¸» ¬¸¿œ¸™¸ ˆ½Å ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ í¸½›¸½ ˆ½Å ¢¥¸‡ ¢¨¸š¸¸¡¸ú œÏ¢ˆÅ¡¸¸ having real estate regulators in place in the
ˆ½Å ¥¸¢Ÿ¤¸÷¸ £í÷¸½, £¸]¡¸ ¬÷¸£ ¥¸¸½ˆÅœ¸¸¥¸ œÏˆÅ¸£ ˆ½Å ¢›¸ˆÅ¸¡¸ ¬˜¸¸¢œ¸÷¸ States, consideration should be given to set up
ˆÅ£›¸½ ˆÅ¸½ Ÿ¸í÷¨¸ ¢™¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A Ombudsman type bodies at the State level.
xxvii) The role of the housing and real estate
xxvii) ‚¸¨¸¸¬¸ ‚¸¾£ ž¸» ¬¸¿œ¸™¸ ¥¸¸½ˆÅœ¸¸¥¸ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³
Ombudsman would be to monitor JNNURM
£¸«’ïú¡¸ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸Š¸÷¸ ‚¸¨¸¸¬¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆÅú
housing projects, ensure that proper appraisals
¢›¸Š¸£¸›¸ú ˆÅ£›¸½ ˆÅú í¸½Š¸úA ¬¸º¢›¸¢©\¸÷¸ ˆÅ£½¿ ¢ˆÅ „¢\¸÷¸ Ÿ¸»¥¡¸¸¿ˆÅ›¸
are being done, collect relevant data, identify
¢ˆÅ¡¸¸ ]¸¸ £í¸ í¾ ¬¸º¬¸¿Š¸÷¸ ‚¸¿ˆÅ”õ½ ¬¸¿ŠÏíú÷¸ ˆÅ£½¿, „œ¸¡¸ºÄÆ÷¸ ¢Ÿ¸©¸›¸Š¸÷¸
beneficiaries for JNNURM housing projects and
‚¸¨¸¸¬¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ¢¥¸‡ ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆÅú œ¸í\¸¸›¸ ‚¸¾£
address consumer grievances.
„œ¸ž¸¸½Æ÷¸¸ ˆÅú ¢©¸ˆÅ¸¡¸÷¸¸½¿ ˆÅ¸ ¬¸Ÿ¸¸š¸¸›¸ ˆÅ£½¿A
2.5.2 Technical Advisory Group on Housing
2.5.2 ž¸¸£÷¸ Ÿ¸½¿ í¸„¢¬¸¿Š¸ ¬’¸’Ä-‚œ¸ (‚¸¨¸¸¬¸-œÏ¸£Ÿž¸) ¬¸»\¸ˆÅ¸¿ˆÅ Start-up Index in India
œ¸£ ÷¸ˆÅ›¸úˆÅú ¬¸¥¸¸íˆÅ¸£ ™¥¸A Reserve Bank of India has been interested in
ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆÅú :fp ž¸¸£÷¸ú¡¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ ˆ½Å ¢¥¸‡ developing a Housing Start- up Index (HSUI) for
¢›¸¡¸¢Ÿ¸÷¸ ‚¸š¸¸£ œ¸£ ‡ˆÅ í¸„¢¬¸¿Š¸ ¬’¸’Ä-‚œ¸ (‚¸¨¸¸¬¸-œÏ¸£Ÿž¸) Indian Economy on a regular basis. Accordingly,
¬¸»\¸ˆÅ¸¿ˆÅ ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½ Ÿ¸½¿ £íú í¾A ÷¸™›¸º¬¸¸£, ‡ˆÅ ÷¸ˆÅ›¸úˆÅú a Technical Advisory Group (TAG) was formed by
¬¸¥¸¸íˆÅ¸£ ™¥¸ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ׸£¸ Š¸¢“÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸A RBI. HSUI is a commendable effort on the part of
í¸„¢¬¸¿Š¸ ¬’¸’Ä-‚œ¸ ¬¸»\¸ˆÅ¸¿ˆÅ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆÅú ‚¸½£ ¬¸½ ‡ˆÅ RBI as it has significant forward and backward
¬¸£¸í›¸ú¡¸ œÏ¡¸¸¬¸ í¾, Æ¡¸¸½¿¢ˆÅ ƒ¬¸ˆ½Å ‚ŠÏŠ¸¸Ÿ¸ú ‚¸¾£ œ¸©\¸Š¸¸Ÿ¸ú ¬¸¿¤¸¿š¸ linkages and it would study the impact of the
¬¸¸˜¸ÄˆÅ íÿ ‚¸¾£ ¡¸í ¤¸ÿˆÅˆÅ¸£ú, „œ¸ž¸¸½Æ÷¸¸ ¢’ˆÅ¸… ¨¸¬÷¸º‡¿, ¬¸¸]¸- construction sector across different sectors like
¬¸]]¸¸, ž¸¨¸›¸ ¢›¸Ÿ¸¸Äµ¸ ¬¸¸Ÿ¸ŠÏú ]¸¾¬¸½ ¢ž¸››¸-¢ž¸››¸ ®¸½°¸¸½¿ Ÿ¸½¿ £¸½{¸Š¸¸£ ˆ½Å banking, consumer durables, furnishing,
ž¸ú ®¸½°¸ Ÿ¸½¿ ¢›¸Ÿ¸¸Äµ¸ ®¸½°¸ œ¸£ ¬¸¿‹¸¸¸÷¸ ˆÅ¸ ‚š¡¸¡¸›¸ ˆÅ£½Š¸¸A ÷¸ˆÅ›¸úˆÅú building material and also employment. The TAG
¬¸¥¸¸íˆÅ¸£ ™¥¸ ›¸½ ¢¬¸œ¸€¸¢£©¸ ˆÅú ¢ˆÅ $¸¾£-¤¸ÿˆÅˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ ˆÅ¸½ ™½©¸ recommended that NBO may be chosen for
Ÿ¸½¿ ‚¸¨¸¸¬¸ ‚¸¾£ ž¸¨¸›¸ ¢›¸Ÿ¸¸Äµ¸ ¬¸¿¤¸¿š¸ú ‚¸¿ˆÅ”õ¸½¿ ˆ½Å ¬¸¿ŠÏíµ¸ ‚¸¾£ œÏ¬¸¸£ collection and dissemination of housing and
ˆ½Å ¢¥¸‡ \¸º›¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A building construction statistics in the country.

33
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

2.5.3 ¨¡¸¢«’ (Ÿ¸¸ƒÇŸ½) ‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸£ ¬¸¿ˆ½Å›Íµ¸ ˆ½Å ¬¸¸˜¸ ‡ˆÅ 2.5.3 Committee for setting up of a dedicated
Micro Finance Company with focus on
¬¸Ÿ¸¢œ¸Ä÷¸ ¨¡¸¢«’ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ¬˜¸¸¢œ¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ˆ½Å ¢¥¸‡
micro housing finance.
¬¸¢Ÿ¸¢÷¸A

The High Level Task Force had noted that

„\\¸ ¬÷¸£ú¡¸ ˆÅ¸¡¸Ä™¥¸ ›¸½ ›¸¸½’ ¢ˆÅ¡¸¸ ˜¸¸ ¢ˆÅ ‚¸¨¸¸¬¸ ®¸½°¸ ˆÅ¸½ „¬¸ˆÅú housing sector requires a different kind of
†µ¸ ¬¸¿¤¸¿š¸ú t:jrsa œ¸»£ú ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ ‚¥¸Š¸ œÏˆÅ¸£ ˆ½Å financial framework to meet its credit needs and
¢¨¸î¸ú¡¸ ˆÅ¸¡¸Ä [¸¿\¸½ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸ í¾ ‚¸¾£ ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú also visualised the need for a housing finance
company whose main focus will be on micro
ˆÅú {¸³£÷¸ ˆÅú ž¸ú ˆÅ¥œ¸›¸¸ ˆÅú ¢]¸¬¸ˆÅ¸ Ÿ¸º‰¡¸ ¬¸¿ˆ½Å›™µ¸ ¨¡¸¢«’-
housing loans. The Committee had further
‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£ í¾ ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸ ¬¸¢Ÿ¸¢÷¸ ›¸½ ¡¸í ¢¬¸œ¸€¸¢£©¸ ž¸ú
recommended that existing micro-finance
ˆÅú ˜¸ú ¢ˆÅ ¨¸÷¸ÄŸ¸¸›¸ ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¨¸÷¸ÄŸ¸¸›¸ ¢¨¸¢›¸¡¸Ÿ¸¸½¿ Ÿ¸½¿ institutions needs to be encouraged, supported
œÏž¸¸¨¸ú œ¸¢£¨¸÷¸Ä›¸¸½¿ ¬¸½ œÏ¸½÷¬¸¸¢í÷¸ ˆÅ£›¸½, ¬¸í¸¡¸÷¸¸ ™½›¸½ ‚¸¾£ ¤¸[õ¸‡ and up-scaled by effecting changes in the
]¸¸›¸½ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸ í¾ ]¸¸½ „›¸ˆ½Å œ¸¢£\¸¸¥¸›¸¸½¿ ˆÅ¸½ ¤¸¸¢š¸÷¸ ˆÅ£÷¸½ íÿ - existing regulations that constrain their
operations, the accepting of deposits being one
]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¥¸½›¸¸ „›¸Ÿ¸½¿ ¬¸½ ‡ˆÅ í¾A
of them.

ˆÅ¸¡¸Ä™¥¸ ˆÅú „œ¸¡¸ºÄÆ÷¸ ¢©¸ˆÅ¸¡¸÷¸¸½¿ ˆ½Å ‚›¸º¬¸£µ¸ Ÿ¸½¿, ¬¸£ˆÅ¸£ ›¸½ ¬¸®¸Ÿ¸
Pursuant to the above recommendations of the
œÏ¸¢š¸ˆÅ¸£ú ˆ½Å ‚›¸ºŸ¸¸½™›¸ ¬¸½ tks ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¿¸¸›¸¸½a Ÿ¸½¿ ‚¸¨¸¸¬¸ †µ¸ Task Force, the Government has decided to
¬¸¿¤¸¿š¸ú œÏˆÅ¸¡¸¸½¿Ä ˆÅ¸½ ¬¸º\¸¸² ¤¸›¸¸›¸½ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ™úœ¸ˆÅ œ¸¸£½‰¸ ˆÅ¸¡¸Ä™¥¸ ˆÅú approve a Competent Authority for setting up a
¢¬¸œ¸€¸¢£©¸¸½¿ ˆÅ¸½ „]¸¸Š¸£ ˆÅ£›¸½ ˆ½Å ¬¸¸˜¸ ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½ ‚¸¾£ „œ¸¸¡¸ Committee which will develop and suggest
measures for implementing the recommend-
¬¸º^¸¸›¸½ ˆ½Å ¢¥¸‡ ¬˜¸¸¢œ¸÷¸ ˆÅ£›¸½ ˆÅ¸ ¢¨¸¢›¸©\¸¡¸ djsxh ‚¸¾£ ƒ¬¸ˆ½Å
ations of the Deepak Parekh Task Force in regard
¬¸¸˜¸ íú ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿, ]¸¸½ $¸£ú¤¸¸½¿ ˆÅú t:jrsa œ¸»£ú ˆÅ£÷¸½ íÿ,
to strengthening the housing loan functions of
ˆÅú ¬˜¸¸œ¸›¸¸ ˆÅ£›¸½ ˆÅ¸ ž¸ú ¢¨¸¢›¸¢©\¸¡¸ djsxhA ¡¸í ¬¸¢Ÿ¸¢÷¸ Ÿ¸»¥¸ ³œ¸ micro-finance institutions and to establish
¬¸½ œÏ\¸¢¥¸÷¸ ŠÏ¸íˆÅ ‚¸š¸¸£, †µ¸ ™½›¸½ ˆÅ¸ ‚ž¡¸¸¬¸, ¨¡¸¢«’ ¢¨¸î¸ housing micro-finance institutions that meet
¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å œÏˆÅ¸¡¸¸½Ä ˆÅ¸½ ‚¢ž¸©¸¸¢¬¸÷¸ ˆÅ£›¸½ ¨¸¸¥¸½ ¨¸÷¸ÄŸ¸¸›¸ ¢›¸¡¸Ÿ¸¸½¿ housing finance needs of the poor. The
Committee will basically examine the prevailing
‡¨¸¿ ¢¨¸¢›¸¡¸Ÿ¸¸½¿ ˆ½Å ¬¸¸˜¸ ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ‚¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ ˆ½Å
customer base, loaning practices and repayment
ŠÏ¸íˆÅ¸½¿ ˆ½Å œ¸º›¸ž¸ºÄŠ¸÷¸¸›¸ ¨¡¸¨¸í¸£, ‡½¬¸½ œ¸¢£¨¸÷¸Ä›¸¸½¿ ˆÅ¸ ¬¸º^¸¸¨¸, ¢]¸›¸ˆ½Å
behaviour of informal sector customers of
¢¥¸‡ ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¬¸œ¸€¥¸÷¸¸œ¸»¨¸ÄˆÅ ‚¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ ˆ½Å successful micro- finance institutions along with
$¸£ú¤¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸ †µ¸ œÏ™¸›¸ ˆÅ£›¸½ ˆÅú ‚›¸º±¸¸ ‚¸¨¸©¡¸ˆÅ í¾, ˆÅ¸ the existing rules and regulations governing the
¬¸º^¸¸¨¸ ™½›¸½ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ ]¸¸¿\¸ ˆÅ£½Š¸úA ƒ¬¸ ¬¸¢Ÿ¸¢÷¸ ˆÅ¸½ ‚ž¸ú ‚œ¸›¸ú functioning of the micro-finance institutions and
to suggest any changes that may be required to
¢£œ¸¸½’Ä œÏ¬÷¸º÷¸ ˆÅ£›¸ú í¾A
permit the micro- finance institutions to
successfully provide housing loans to the poor in
the informal sector. The Committee is yet to
submit its report.

34
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
‚š¡¸¸¡¸-3 À ‚¸¨¸¸¬¸ ¢¨¸î¸ ¤¸¸{¸¸£ ˆÅ¸ ¢¨¸ˆÅ¸¬¸
Chapter : 3 Market Developments in Housing Finance
3.1 ¤¡¸¸]¸ ˆÅú ™£½¿ ‚¸¾£ ‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£ „›¸ˆÅ¸
¬¸¿‹¸¸÷¸ A
3.1.1 ‚¸¨¸¸¬¸ ¢¨¸î¸ ž¸¸£÷¸ Ÿ¸½¿ ‡ˆÅ Ÿ¸í÷¨¸¸ˆÅ¸¿®¸ú ®¸½°¸ ¤¸›¸ Š¸¡¸¸ í¾ ‚¸¾£ ¢¨¸©¨¸
‚¸¢˜¸ÄˆÅ Ÿ¸¿™ú ˆ½Å ¤¸¸¨¸]¸»™ ž¸ú ‚¸Š¸¸Ÿ¸ú ¨¸«¸¸½¿Ä Ÿ¸½¿ ƒ¬¸ˆ½Å ‚¬¸¸š¸¸£µ¸ ¨¸¼¢Ö
™£ ¤¸[õ›¸½ ˆÅú ‚¸©¸¸ ˆÅú ]¸¸÷¸ú í¾ ¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ›¸½
‚œ¸›¸ú £µ¸›¸ú¢÷¸¡¸¸½¿ Ÿ¸½¿ œ¸¢£¨¸÷¸Ä›¸ ˆÅ£ ¢¥¸‡ íÿ Æ¡¸¸½¿¢ˆÅ ǽÅ÷¸¸ ¤¸¸{¸¸£ ¬¸½
¢¨¸Ç½Å÷¸¸ ¤¸¸{¸¸£ Ÿ¸½¿ ‡ˆÅ ¤¸™¥¸¸¨¸ í¸½ £í¸ í¾ ¬¸£ˆÅ¸£ ׸£¸ ’¾Æ¬¸ ˆÅú
„™¸£ ™£¸½¿, ˆÅŸ¸ ‚¸¾£ œÏ¢÷¸¡¸¸½Š¸ú ¤¡¸¸]¸ ™£¸½¿ ›¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸½
¨¸¸¬÷¸¨¸ Ÿ¸½¿ œÏ¢÷¸¡¸¸½Š¸ú ¤¸›¸¸ ¢™¡¸¸ í¾ ¢ˆÅ›÷¸º ¨¸÷¸ÄŸ¸¸›¸ ´©¡¸¥¸½‰¸ Ÿ¸½¿
‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£ œÏž¸¸¢£÷¸ ¤¡¸¸]¸ ™£¸½¿ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ ‡ˆÅ œ¸¢£¨¸÷¸Ä›¸
œÏ¨¸¼¢î¸ ™½‰¸ú ]¸¸ £íú í¾
3.1.2 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ¢¥¸‡ ™¸½ œÏˆÅ¸£ ˆÅú ¤¡¸¸]¸ ™£½¿ íÿ - ¢¬˜¸£ ™£
‚¸¾£ ‚¢¬˜¸£ ™£ œ¸í¥¸ú Ÿ¸½¿, ¤¡¸¸]¸ ™£½¿ ¬¸¸Ÿ¸¸›¡¸÷¸¡¸¸ ¬¸Ÿœ¸»µ¸Ä ‚¨¸¢š¸
ˆ½Å ™¸¾£¸›¸ ¢¬˜¸£ ˆÅú ]¸¸÷¸ú íÿ ]¸¤¸¢ˆÅ œ¸£¨¸÷¸úÄ Ÿ¸½¿, ¤¡¸¸]¸ ˆÅú ™£½¿ ¤¸¸{¸¸£
ˆÅú ¢¬˜¸¢÷¸ œ¸£ ¢›¸ž¸Ä£ ˆÅ£÷¸ú íÿ ‚¸¾£ ‚¸¨¸¸¬¸ ¤¸¸{¸¸£ Ÿ¸½ „÷¸¸£-\¸[õ¸¨¸
¬¸½ ‚÷¡¸¢š¸ˆÅ œÏž¸¸¢¨¸÷¸ í¸½ ]¸¸÷¸ú íÿ
3.1.3 ž¸¸£÷¸ Ÿ¸½¿ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ œÏ™î¸ ‚¸¨¸¸¬¸ †µ¸
„÷œ¸¸™ ¡¸¸ ÷¸¸½ ¤¡¸¸]¸ ˆÅú ¢¬˜¸£ ™£ ‚˜¸¨¸¸ ‚¢¬˜¸£ ™£ œ¸£ ‚˜¸¨¸¸
‚¨¸¢š¸ ‚¸¾£ ‚¸¨¸¸¬¸ †µ¸ „÷œ¸¸™¸½¿ ˆ½Å œÏˆÅ¸£ œ¸£ ¢›¸ž¸Ä£ ˆÅ£÷¸½ íº‡
™¸½›¸¸½¿ ˆÅú ¬¸¿ˆÅ£ ™£ œ¸£ ¡¸Ô¸¢œ¸, ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ¢¥¸‡ ¤¡¸¸]¸ ˆÅú ™£½¿
¤¸íº÷¸ ‚¢¬˜¸£ ›¸íì í¸½÷¸ú íÿA ¢¨¸\¸¸£¸š¸ú›¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ œÏ¸˜¸¢Ÿ¸ˆÅ
†µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ‚¸½£ ¬¸½ œÏž¸¸¢£÷¸ ¤¡¸¸]¸ ˆÅú ™£½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ 8 œÏ¢÷¸©¸÷¸ ¬¸½ ¥¸½ˆÅ£ 16 œÏ¢÷¸©¸÷¸ ÷¸ˆÅ ‚¸¾£
¬¸¸¨¸Ä]¸¢›¸ˆÅ ®¸½°¸ ˆ½Å ¤¸ÿˆÅ¸½¿ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ 9 œÏ¢÷¸©¸÷¸ ¬¸½ ¥¸½ˆÅ£ 14
œÏ¢÷¸©¸÷¸ ÷¸ˆÅ £í÷¸ú íÿA
3.1.4 œ¸º›¸À ¤¡¸¸]¸ ™£¸½¿ Ÿ¸½¿ ¨¸¼¢Ö †µ¸ ˆÅú ‚¨¸¢š¸ ‚¸¾£ „š¸¸£ ¥¸ú Š¸ƒÄ £¸¢©¸
œ¸£ ¢›¸ž¸Ä£ ˆÅ£÷¸ú í¾A Š¸¼í †µ¸¸½¿ œ¸£ ¤¡¸¸]¸ Ÿ¸½¿ \¸¸¥¸» ¨¸¼¢Ö ¤¸¸{¸¸£ ˆÅú
35
Report on Trend and Progress of Housing in India, 2008
3.1 Interest Rates and their Impact
on Housing Loans
3.1.1 Housing finance has become a booming sector
in India and is expected to grow at phenomenal
growth rates in the coming years despite the
global meltdown. The banks and Housing
Finance Companies have brought changes to
their strategies as there is a shift from buyers
market to sellers market. Liberal tax rates by the
Government, low and competitive interest rates
have made housing finance really competitive.
But in the present scenario, a shifting trend is
being observed in respect of the interest rate
charged on housing loans.
3.1.2 There are two kinds of interest rates for housing
finance - Fixed rate and Floating rate. In the
former, the interest rates are generally fixed
during the entire term of the loan, whereas, in
the latter the interest rates are dependent on the
market situation and are greatly affected with
the ups and downs of the housing market.
3.1.3 The housing loan products offered by PLIs are
either on a fixed rate of interest or floating rate of
interest or a hybrid of both depending upon the
tenure and type of housing loan products,
though interest rates for housing finance are not
very volatile. The interest rates charged by PLIs
during the year under consideration range from
about 8 per cent to 16 per cent with respect to
HFCs and 9 per cent to 14 per cent so far as
Public Sector Banks are concerned.
3.1.4 The rise in interest rates, again, depends on the
tenure of the loan and the amount borrowed.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
¨¸¸¬÷¸¢¨¸ˆÅ÷¸¸‚¸½¿ ˆÅú ‡ˆÅ ^¸¥¸ˆÅ í¾A Ÿ¸ºÍ¸ ¬œ¸€ú¢÷¸ ˆÅú „¸½î¸£
¤¸[õ÷¸ú ™£ ‡ˆÅ ‡½¬¸¸ ˆÅ¸£ˆÅ í¾ ]¸¸½ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸
†µ¸¸½¿ œ¸£ ‚¢š¸ˆÅ ¤¡¸¸]¸ ™£ œÏž¸¸¢£÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¤¸¸š¡¸ ˆÅ£ £í¸ í¾
A ƒ¬¸ˆ½Å ‚¥¸¸¨¸¸, ¤¸¸{¸¸£ ˆÅú ¬œ¸€ú¢÷¸ˆÅ¸£ú œÏ¨¸¼¢î¸ œ¸£ ¢›¸¡¸¿°¸µ¸ £‰¸›¸½
ˆ½Å ¢¥¸‡ ›¸ˆÅ™ú ‚¸£¢®¸÷¸ ‚›¸ºœ¸¸÷¸ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä
¤¸ÿˆÅ ˆÅ¸ ˆÅ™Ÿ¸ ž¸ú ¤¡¸¸]¸ ™£¸½¿ ˆ½Å œÏ¢÷¸ ›¸ˆÅ¸£¸÷Ÿ¸ˆÅ ³œ¸ ¬¸½ œÏ¤¸¥¸
£í¸ í¾ A
3.1.5 The higher cost of housing loans has
3.1.5 ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅú „\\¸ ¥¸¸Š¸÷¸ ›¸½ ¤¸¸™ Ÿ¸½¿ ¬¸¿œ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ‡ˆÅ
‚¢×÷¸ú¡¸ [¿Š¸ ¬¸½ ¨¸¼¢Ö ˆÅú í¾A ¬¸¿œ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ ˆÅú ¢¬˜¸¢÷¸ ž¸»¢Ÿ¸ ˆÅú
‚¢š¸ˆÅ ¥¸¸Š¸÷¸, ž¸¨¸›¸ ¢›¸Ÿ¸¸Äµ¸ ¬¸¸Ÿ¸ŠÏú ‚¸¾£ Ÿ¸{¸™»£ú ˆ½Å ˆÅ¸£µ¸ ‚¸¾£
¤¸™÷¸£ íºƒÄ í¾A ¨¸¾¢©¨¸ˆÅ ‚¸¢˜¸ÄˆÅ Ÿ¸¿™ú ‚¸¾£ „\\¸ Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ dks
/;ku esa j[krs gq, ¡¸í ‚¸©¸¸ ˆÅú ]¸¸÷¸ú ˜¸ú ¢ˆÅ ‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£
¤¡¸¸]¸ ™£½¿ ‚¸›¸½ ¨¸¸¥¸½ ¨¸«¸¸½¿Ä Ÿ¸½¿ ‚\¸¸›¸ˆÅ ¤¸[õ½¿Š¸úA
3.1.6 Despite the rising interest rate, home loans grew
3.1.6 ¤¸[õ÷¸ú ¤¡¸¸]¸ ™£¸½¿ ˆ½Å ¤¸¸¨¸]¸»™ ž¸ú Š¸¼í †µ¸ ƒ¬¸ ¬¸¸¥¸ Ÿ¸½¿ ¥¸Š¸ž¸Š¸ 20
œÏ¢÷¸©¸÷¸ ¤¸[õ¸ ¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ¬¸½ †µ¸
ÇÅŸ¸©¸À 14-15 œÏ¢÷¸©¸÷¸ ‚¸¾£ 24 œÏ¢÷¸©¸÷¸ ˆÅú ™£ ¬¸½ ¤¸[õ¸ ¡¸í
œÏ÷¡¸¸©¸¸ ˆÅú ]¸¸÷¸ú í¾ ¢ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ ®¸½°¸ ‚¸Š¸¸Ÿ¸ú ¨¸«¸¸½¿Ä Ÿ¸½¿ ž¸ú
œÏ¨¸¼¢î¸ ˆ½Å ¬¸¸˜¸ Š¸¢÷¸ ¤¸›¸¸‡ £‰¸½Š¸¸A
3.2
3.2 ‚¸¨¸¸¬¸ ¢¨¸î¸ „÷œ¸¸™ ‚¸¾£ ¢¨¸÷¸£µ¸ „œ¸¸¡¸÷¸¿°¸
(œÏÇÅŸ¸)A
3.2.1 The housing finance system in India is quite
3.2.1 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú œÏˆ¼Å¢÷¸ Ÿ¸½¿ ¢¤¸¥ˆºÅ¥¸ ¢¨¸¢¨¸š¸ í¾ ¢¨¸©¸¸¥¸
]¸›¸¸¿¢ˆÅˆÅú ˆÅú {¸³£÷¸¸½¿ ‚¸¾£ ¬¸¸Ÿ¸¸¢]¸ˆÅ ‡¨¸¿ ‚¸¢˜¸ÄˆÅ ¢¬˜¸¢÷¸¡¸¸½¿ ˆ½Å
‚›¸º¬¸¸£, ƒ¬¸ œÏµ¸¸¥¸ú ›¸½ ž¸¸£÷¸ú¡¸ ›¸¸Š¸¢£ˆÅ¸½¿ ˆ½Å ¢¬¸£ œ¸£ Ž÷¸ ˆÅú
¨¡¸¨¸¬˜¸¸ ˆÅ£ˆ½Å „›¸ˆ½Å ¢¥¸‡ ‡ˆÅ ¬¸º£®¸¸ ]¸¸¥¸ œÏ™¸›¸ ˆÅ£›¸½ Ÿ¸½¿ ¬¸¸˜¸ÄˆÅ
³œ¸ ¬¸½ ¢›¸«œ¸¸™›¸ ¢ˆÅ¡¸¸ í¾ A ¡¸Ô¸¢œ¸, ‚›¸¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ ž¸¸£÷¸ú¡¸
‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú Ÿ¸½¿ ¥¸Š¸ž¸Š¸ 70 œÏ¢÷¸©¸÷¸ ˆÅ¸ ¥¸½‰¸¸ ™½÷¸¸ í¾,
÷¸˜¸¸¢œ¸, ƒ¬¸›¸½ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¨¸¢ž¸››¸ ¬÷¸£¸½¿ œ¸£ ‚¢ž¸›¸¨¸ˆÅ¸£ú ‚¸¨¸¸¬¸
†µ¸Š¸÷¸ ¢¨¸¢¨¸š¸ œÏˆÅ¸£ ˆ½Å „÷œ¸¸™ ¬¸œ¸€¥¸÷¸¸œ¸»¨¸ÄˆÅ œÏ¬÷¸º÷¸ ¢ˆÅ‡ íÿA
36
Report on Trend and Progress of Housing in India, 2008
The current rise in interest rate on home loans is
a reflection of the market realities. The spiralling
inflation rate is one factor that is forcing the
lending institutions to charge more on housing
loans. Besides, RBIs step to increase the cash
reserve ratio for controlling inflationary trends of
the market has also dominated negatively
towards the interest rates.
subsequently raised the property prices in an
unprecedented manner. The situation of
property prices was further worsened by higher
costs of land, materials and labour charges. In
view of the global meltdown and high inflation, it
is expected that the interest rates on housing
loans would further zoom in the coming year.
by about 20 per cent this year. The loans from
banks and housing finance companies grew at
the rate of 14-15 per cent and 24 per cent
respectively. It is expected that the housing loan
segment would keep the pace with the trend in
the next year also.
Housing Finance Products and
Delivery Mechanism
diverse in nature. As according to the needs of
vast demographic, social and economic
conditions, the system has performed
significantly in providing the safety net to the
Indian citizens by providing roof over their head.
Though, the informal sector accounts for about
70 per cent in the Indian housing finance
system, it has successfully offered a variety of
innovative housing loan products to the various
levels of the income group.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
3.2.2 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¾œ¸\¸¸¢£ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¤¸¸{¸¸£ Ÿ¸½¿ ¢¨¸¢ž¸››¸ ¨¸Š¸Ä ‚˜¸¸Ä÷¸Ã
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ, ¬¸íˆÅ¸£ú ®¸½°¸
ƒ÷¡¸¸¢™ ©¸¸¢Ÿ¸¥¸ íÿ A ƒ›¸ ¬¸¿¬˜¸¸›¸¸½¿ ›¸½ ƒ¬¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿
ˆÅ¸½ œÏ÷¡¸®¸ ¢¨¸î¸, œ¸º›¸¢¨¸Äî¸, ¨¡¸¢«’ ¢¨¸î¸ ƒ÷¡¸¸¢™ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¢¨¸¢¨¸š¸
œÏˆÅ¸£ ˆ½Å „÷œ¸¸™ œ¸½©¸ ¢ˆÅ‡ íÿ ƒ›¸ œ¸£Ÿœ¸£¸Š¸÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ „÷œ¸¸™¸½¿
¬¸½ ‚¥¸Š¸, ˆºÅŽ ¢¨¸©¸½«¸ „÷œ¸¸™ ‚˜¸¸Ä÷¸Ã ]¸¸½¢‰¸Ÿ¸ (œÏ)©¸Ÿ¸›¸ „÷œ¸¸™,
¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸Š¸÷¸ „÷œ¸¸™ ƒ÷¡¸¸¢™ ž¸ú „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ˆ½Å ¬¸¸Ÿ¸›¸½
£‰¸½ Š¸‡ íÿA
3.2.3 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸ ˆÅŸ¸ú ˆÅú ¢¬˜¸¢÷¸ ¤¸íº÷¸ íú ]¸¢’¥¸ í¾ ‚¸¨¸¸¬¸ ‡¨¸¿
©¸í£ú $¸£ú¤¸ú „œ¸©¸Ÿ¸›¸ Ÿ¸¿°¸¸¥¸¡¸ ׸£¸ Š¸¢“÷¸ ÷¸ˆÅ›¸úˆÅú ™¥¸ ¢£œ¸¸½’Ä
ˆ½Å ‚›¸º¬¸¸£ ©¸í£ú ž¸¸£÷¸ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆºÅ¥¸ ˆÅŸ¸ú 2007 ˆ½Å œÏ¸£Ÿž¸
Ÿ¸½¿ 24.71 ¢Ÿ¸¢¥¸¡¸›¸ ƒˆÅ¸ƒ¡¸¸¿ ˜¸ì, ¢]¸¬¸Ÿ¸½¿ ¬¸½ 99 œÏ¢÷¸©¸÷¸ ‚¸¢˜¸ÄˆÅ
:i ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ ¥¸½‰¸¸ ™½÷¸ú íÿA ¬¸Ÿ¸¬¡¸¸ ˆÅ¸
¬¸Ÿ¸¸š¸¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ž¸»¢Ÿ¸ ˆ½Å ‚¢š¸ŠÏíµ¸ ‚¸¾£ ¢¨¸ˆÅ¸¬¸ ˆ½Å ¢¥¸‡
†µ¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸ˆÅ£µ¸¸½¿ ˆÅ¸½ ¢™‡ Š¸‡ ˜¸½ ¢]¸¬¸¬¸½ ¢ˆÅ ™½©¸ Ÿ¸½¿
‚¸¨¸¸¬¸ú¡¸ ¬’¸ÁˆÅ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ž¸»¢Ÿ¸ ‚¸¾£ Ÿ¸ˆÅ¸›¸ ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¬˜¸¥¸¸½¿
ˆÅ¸ ‚¢š¸ŠÏíµ¸ ‚¸¾£ ¢¨¸ˆÅ¸¬¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆ½ÅA ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ‡ˆÅ
“¸½¬¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ £¸]¡¸ ¬÷¸£ ˆ½Å
‚¸¨¸¸¬¸ ¤¸¸½”¸½¿Ä ‚¸¾£ ‚›¡¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸ˆÅ£µ¸¸½¿ ˆÅ¸½ ž¸ú †µ¸ œÏ™¸›¸
¢ˆÅ‡ Š¸‡ ˜¸½A
3.2.4 ž¸¸£÷¸ Ÿ¸½¿ ‚œ¸¸’ÄŸ¸½¿’ œ¸Ã€¥¸¾’¸½¿ ˆÅú œÏ¨¸¼¢î¸ ¢¨¸©¸½«¸ ³œ¸ ¬¸½ ©¸í£ú ®¸½°¸ Ÿ¸½¿
Š¸¢÷¸ œ¸ˆÅ”õ £íú í¾A œÏ¨¸¼¢î¸ ˆÅ¸½ ¬¸º¢¨¸š¸¸]¸›¸ˆÅ ¤¸›¸¸›¸½ ˆ½Å ¢¥¸‡ ‚¸¾£
‚¸¨¸¸¬¸ú¡¸ ¬’¸ÁˆÅ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ž¸ú ¢›¸]¸ú-¬¸¸¨¸Ä]¸¢›¸ˆÅ ž¸¸Š¸ú™¸£ú
œ¸£ œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸ ˆ½Å ¬¸¸˜¸ ƒ¬¸ˆ½Å ™¸¾£¸›¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ©¸÷¸¸½¿Ä œ¸£ ¢›¸]¸ú
ž¸¨¸›¸ ¢›¸Ÿ¸¸Ä÷¸¸‚¸½¿ ˆÅ¸½ †µ¸ ¢™‡ Š¸‡ ˜¸½A
3.2.5 ‚¸¨¸¸¬¸ ¨¡¸¢«’ ¢¨¸î¸ „÷œ¸¸™¸½¿ ›¸½ ‚œ¸›¸ú ¬¸¿£\¸›¸¸ ˆ½Å ˆÅ¸£µ¸ Š¸¢÷¸ œ¸ˆÅ”õ
¥¸ú í¾, ]¸¸½ ¬¸¸Ÿ¸¸›¡¸ :i ¬¸½ ŠÏ¸Ÿ¸úµ¸ ‚¸¾£ $¸£ú¤¸ ¥¸¸½Š¸¸½¿ ˆÅú t:+jrksa
‚¸¾£ „Ó½©¡¸ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ÷¸¾¡¸¸£ ¢ˆÅ‡ Š¸‡ ˜¸½ A ž¸¸£÷¸ Ÿ¸½¿
¤¸íº÷¸ ¬¸½ ¬¸¿¬˜¸¸›¸ ‚¸¨¸¸¬¸ ¨¡¸¢«’ ¢¨¸î¸ ˆÅú Š¸¢÷¸¢¨¸¢š¸¡¸¸½¿ Ÿ¸½¿ ¥¸Š¸½ íº‡ íÿ
ƒ›¸Ÿ¸½¿ ¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¿¸¸›¸, ¬¸Ÿ¸º™¸¡¸ ‚¸š¸¸¢£÷¸ ¬¸¿Š¸“›¸, $¸¾£-
¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸, ¬¨¸¡¸¿¬¸½¨¸ú ¬¸¿¬˜¸¸Š¸÷¸ ¬¸¿¤¸¿š¸¸½¿ ˆ½Å ¬¸¸˜¸ ©¸¸¢Ÿ¸¥¸ íÿ A
¡¸½ ¬¸¿¬˜¸¸›¸ \¸»¿¢ˆÅ ¬˜¿¸¸›¸ú¡¸ ‚¸š¸¸£ œ¸£ íÿ ‚¸¾£ „›¸ˆÅ¸ ¢¨¸÷¸£µ¸
„œ¸¸¡¸÷¸¿°¸ ‚¢š¸ˆÅ¸¿©¸ :i ¬¸½ ¨¡¸¢Æ÷¸Š¸÷¸ ¬¸¿¤¸¿š¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ í¾,
37
Report on Trend and Progress of Housing in India, 2008
3.2.2 The formal housing finance market of India
comprises various segments viz. Housing
Finance Companies, Scheduled Commercial
Banks, Co-operative Sector etc. These
institutions offer a variety of products relating to
direct finance, refinance, micro-finance etc, to
the borrowers. Apart from these conventional
housing finance products, some special products
viz. Risk Mitigating Products, RML Products etc,
are also being offered to the borrowers.
3.2.3 The condition of housing shortage in India is very
critical. As per the report of the Technical Group
constituted by MHUPA, the total housing
shortage in urban India at the beginning of 2007
was 24.71 million units, of this 99 per cent
accounted for EWS/LIG. To address the problem,
loans were extended to public agencies for
acquisition and development of lands so as to
increase the availability of land and housing sites
for increasing the Housing Stock in the country.
In addition, various PLIs have also extended
loans to state level Housing Boards and other
public agencies to develop a sound housing
finance system.
3.2.4 The trend of apartment flats is gaining
momentum in India, especially in the urban
areas. To facilitate the trend as also to increase
the housing stock, loans were offered to private
builders on commercial terms, with priority
on PPP.
3.2.5 The housing micro-finance products have gained
momentum on account of its structure that is
generally designed to meet the need and
purpose of the rural and poor people. In India, a
number of institutions are involved in the activity
of housing micro-finance. These include micro-
finance institutions, CBOs, NGOs along with the
SHG linkages. As these institutions are locally
based and their delivery mechanism is mostly
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚÷¸À „›¸ˆ½Å œ¸¢£\¸¸¥¸›¸¸½¿ ˆÅú œÏž¸¸¨¸ˆÅ¸¢£÷¸¸ „›¸ˆÅ¸½ ¨¡¸¢«’ ¢¨¸î¸ ˆ½Å ®¸½°¸ through personal contacts, the effectiveness of
their operations enables them to enhance their
Ÿ¸½¿ ‚œ¸›¸¸ ‚¸š¸¸£ ¤¸[õ¸›¸½ ˆÅú ¬¸¸Ÿ¸˜¡¸Ä ™½÷¸ú í¾A
base in the micro-finance segment.
¬¸¸š¸¸£µ¸ :i ¬¸½ , ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ œÏˆÅ¸£ ˆ½ Å ¤¸¸{¸¸£
Š¸¼í †µ¸¸sa ds izdkj% The types of home loans available in the
Š¸¼í ¬¸¸Ÿ¡¸ (ƒ¢Æ¨¸’ú) †µ¸ À ¬¸¿œ¸¢î¸ ˆ½Å ¤¸¿š¸ˆÅ ׸£¸ ‚›¡¸ „Ó½©¡¸ ˆ½Å market are :
¢¥¸‡ †µ¸A Home Equity Loan: Loan for some other purpose
by mortgage of property.
Š¸¼í ¢¨¸¬÷¸¸£ †µ¸ À ‚¢÷¸¢£Æ÷¸ ˆÅŸ¸£¸½¿, ©¸¸¾\¸¸¥¸¡¸ ˆÅú ¬¸º¢¨¸š¸¸‚¸½¿
Home Extension Loan: Loan for extension of
ƒ÷¡¸¸¢™ ˆ½Å ¢¥¸‡ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢¨¸¬÷¸¸£ ˆ½Å ¢¥¸‡ †µ¸A existing houses like the addition of rooms, toilet
Š¸¼í ¬¸ºš¸¸£ †µ¸ À Ÿ¸º‰¡¸ ³œ¸ ¬¸½ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú Ÿ¸£ŸŸ¸÷¸ ‚¸¾£ facilities etc.
£‰¸-£‰¸¸¨¸ ˆ½Å ¢¥¸‡ œÏ™¸›¸ ¢ˆÅ‡ ]¸¸÷¸½ íÿA Home Improvement Loan: Provided mainly for
repairs and maintenance of existing houses.
‹¸£ ‰¸£ú™›¸½ ˆ½Å ¢¥¸‡ †µ¸ À ¤¸›¸½ ¤¸›¸¸‡ Ÿ¸ˆÅ¸›¸ ‰¸£ú™›¸½ ˆ½Å ¢¥¸‡ ¢™¡¸¸
Home Purchase Loan: Finance provided for the
Š¸¡¸¸ †µ¸A
purchase of ready-made houses.
ž¸»¢Ÿ¸ ‰¸£ú™›¸½ ˆ½Å ¢¥¸‡ †µ¸ À ¡¸í ¢£í¸¡¸©¸ú Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸¸˜¸Ä Land Purchase Loan: Meant for the purchase of
ž¸»¢Ÿ¸ ‰¸£ú™›¸½ ˆ½Å „Ó½©¡¸ ¬¸½ ¢™¡¸¸ ]¸¸÷¸¸ í¾A land for construction of residential houses.

3.2.6 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ í¸½›¸½ ˆ½Å ›¸¸÷¸½, £¸«’ïú¡¸ ‚¸¨¸¸¬¸
3.2.6 The National Housing Bank being the regulator
¤¸ÿˆÅ ›¸½ ž¸ú œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¢¨¸¢ž¸››¸ „÷œ¸¸™¸½¿ ˆ½Å :i
of the housing finance companies has also
Ÿ¸½¿ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅú í¾A £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅú ‚¸½£ ¬¸½ extended financial support to the PLIs in the
œÏ™î¸ vfxzeksa Ÿ¸½¿ œ¸£Ÿœ¸£¸Š¸÷¸ œ¸º›¸¢¨¸Äî¸ ‚¸¾£ œ¸¢£¡¸¸½]¸›¸¸ ¢¨¸î¸ form of various products. The loans extended by
©¸¸¢Ÿ¸¥¸ íÿ ¡¸Ô¸¢œ¸, ‚¸¨¸¸¬¸ú¡¸ ¤¸¿š¸ˆÅ ¬¸Ÿ¸¢˜¸Ä÷¸ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ˆÅú NHB included conventional refinance and project
©¸÷¸¸½¿ô Ÿ¸½¿ ˆÅ¸½ƒÄ ›¸¡¸¸ ‹¸’›¸¸ÇÅŸ¸ ›¸íì íº‚¸ í¾, ÷¸˜¸¸¢œ¸, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ finance. Though, no fresh developments took
¤¸ÿˆÅ ׸£¸ œÏ™î¸ ‚¸¨¸¸¬¸ ¨¡¸¢«’ ¢¨¸î¸ ›¸½ ¤¸íº÷¸ ¬¸½ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ˆÅ¸½ place in terms of Residential Mortgage Backed

‚¸ˆÅ¢«¸Ä÷¸ ¢ˆÅ¡¸¸ í¾ í¸¥¸ íú Ÿ¸½¿ œÏ¸£Ÿž¸ ˆÅú Š¸ƒÄ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸ Ÿ¸½¿ ‚]¸ÄˆÅ Securitisation, the housing micro-finance offered

‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸ (¢œ¸€£¸), ]¸¸½ ™¸½ œÏˆÅ¸£ ˆ½Å †µ¸¸½¿ vFkkZr~ ‚¸¨¸¸¬¸ by NHB has attracted a number of borrowers.
Recently introduced Productive Housing in Rural
†µ¸ ÷¸˜¿¸¸ ‚¸¡¸ œ¸¾™¸ ˆÅ£›¸½ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ Š¸¢÷¸¢¨¸¢š¸¡¸¸¿ \¸¥¸¸›¸½ ˆ½Å ¢¥¸‡
Areas (PHIRA) Scheme, which is an
†µ¸ ˆÅ¸ ‡ˆÅ ‡ˆÅúˆÅ£µ¸ í¾, ›¸½ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ ‚¸¨¸¸¬¸ ˆÅú ¢¬˜¸¢÷¸
amalgamation of two types of loans viz. housing
¬¸ºš¸¸£›¸½ ˆ½Å œÏ¢÷¸ ¢¤¸¥ˆºÅ¥¸ ¬¸¸˜¸ÄˆÅ :i ¬¸½ ‚œ¸›¸ú ª½«“÷¸¸ ¤¸›¸¸‡
loan and loan for undertaking income generating
£‰¸úA activities has dominated quite significantly
towards improving the condition of housing in
rural areas.

38
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
3.3 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿‹¸’›¸
3.3.1 Ÿ¸¸›¸¨¸ ˆÅú Ÿ¸»¥¸ž¸»÷¸ ‚¸¨¸©¡¸ˆÅ÷¸¸ í¸½›¸½ ¬¸½, ‚¸¨¸¸¬¸ ›¸½ ¬¸™¾¨¸
‚˜¸Ä¨¡¸¨¸¬˜¸¸, ¬¸£ˆÅ¸£ ‚¸¾£ ¬¸Ÿ¸¸]¸ ˆÅ¸ š¡¸¸›¸ ‚¸ˆÅ¢«¸Ä÷¸ ¢ˆÅ¡¸¸ í¾A
ž¸¸£÷¸ Ÿ¸½¿, ‚¸¨¸¸¬¸ ˆÅú ¬¸Ÿ¸¬¡¸¸ ›¸½ ‚¢š¸ˆÅ¸¿©¸ ‚¸¤¸¸™ú ˆÅ¸½ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿
Ÿ¸½¿ Š¸¿™ú-¤¸¢¬÷¸¡¸¸½¿ ‚¸¾£ ]¸úµ¸Ä-©¸úµ¸Ä ‚¸ª¡¸¸½¿ Ÿ¸½¿ £í›¸½ ˆ½Å ¢¥¸‡ ¤¸¸š¡¸
¢ˆÅ¡¸¸ í¾A ¢œ¸Ž¥¸½ ™©¸ˆÅ ¬¸½, ž¸¸£÷¸ ¬¸£ˆÅ¸£, ŠÏ¸Ÿ¸úµ¸ ‚¸¾£ ©¸í£ú
‚¸¤¸¸™ú ˆ½Å ¢¥¸‡ ¢¨¸¢ž¸››¸ ‚¸¨¸¸¬¸ †µ¸ ¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½ œÏ¸£Ÿž¸ ˆÅ£ˆ½Å
‚¸¨¸¸¬¸ ®¸½°¸ ˆÅ¸½ ¬¸©¸Æ÷¸ ¤¸›¸¸›¸½ ˆÅ¸ ¢›¸£›÷¸£ œÏ¡¸¸¬¸ ˆÅ£÷¸¸ í¾A ƒ¬¸
¢™©¸¸ Ÿ¸½¿ œ¸í¥¸¸ œÏ¡¸÷›¸ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ›¸ú¢÷¸ ˜¸¸, ]¸¸½ 1988 Ÿ¸½¿ ¥¸¸Š¸»
ˆÅú Š¸ƒÄ ˜¸úA £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ¢¥¸‡ ‡ˆÅ ©¸ú«¸Ä
¬¸¿¬˜¸¸›¸ ‚¸¾£ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆ½Å ¬¸Ÿœ¸»µ¸Ä ¬¨¸¸¢Ÿ¸÷¨¸¸š¸ú›¸ ‡ˆÅ
Š¸¸¾µ¸ ¬¸¿¬˜¸¸›¸ ˆ½Å :i Ÿ¸½¿ 1988 Ÿ¸½¿ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸ ƒ¬¸¬¸½ œ¸»¨¸Ä
‚¸¨¸¸¬¸ ‡¨¸¿ ›¸Š¸£ ¢¨¸ˆÅ¸¬¸ ¢›¸Š¸Ÿ¸ ¢¥¸¢Ÿ¸’½” (픈Ÿ½) ¬¸£ˆÅ¸£ ׸£¸
‚¸¨¸¸¬¸ ‚¸¾£ ©¸í£ú ¤¸º¢›¸¡¸¸™ú [¸¿\¸½ ˆÅú ¢¨¸î¸ú¡¸ ‚œ¸½®¸¸‡¿ œ¸»£ú ˆÅ£›¸½
ˆ½Å ¢¥¸‡ 1970 Ÿ¸½¿ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸A 1977 Ÿ¸½¿, ‚¸¨¸¸¬¸
¢¨¸ˆÅ¸¬¸ ¢¨¸î¸ ¢›¸Š¸Ÿ¸ ¢›¸]¸ú ž¸¸Š¸ú™¸£ú ˆ½Å ¬¸¸˜¸ œÏ˜¸Ÿ¸ ‚¸¨¸¸¬¸ ¢¨¸î¸
ˆ¿Åœ¸›¸ú ˆ½Å :i Ÿ¸½¿ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸A
3.3.2 ‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú ¬¸¸œ¸½®¸ :i ¬¸½ ž¸¸£÷¸ Ÿ¸½¿ ›¸ƒÄ í¾ ‚¸¾£ ƒ¬¸ ˆÅ¸£µ¸
¬¸½ ‚¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ ¬¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸í¸¡¸÷¸¸ Ÿ¸š¡¸ ‚¸¾£ „\\¸ ‚¸¡¸
¨¸Š¸Ä ÷¸ˆÅ ¬¸ú¢Ÿ¸÷¸ £íú í¾ ‚¸¾£ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ ŠÏ¸Ÿ¸úµ¸
®¸½°¸¸½¿ Ÿ¸½¿ œ¸¢£\¸¸¥¸›¸ ˆÅ£ ¬¸ˆ½Å íÿA ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ¡¸í ®¸½°¸ ™½©¸ Ÿ¸½¿
£¸½{¸Š¸¸£ œ¸¾™¸ ˆÅ£›¸½ ˆÅ¸ ™»¬¸£¸ ¢¨¸©¸¸¥¸÷¸Ÿ¸ ®¸½°¸ í¾A
3.3.3 ƒ¬¸ ¬¸Ÿ¸¡¸, ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅú t:jr ‚¢š¸ˆÅ¸¿©¸ :i ¬¸½
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ Ÿ¸½¿ œ¸¿]¸úˆ¼Å÷¸ 43 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ 7
¬¸¸¨¸Ä]¸¢›¸ˆÅ ®¸½°¸ ˆ½Å ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆÅú ‚¸½£ ¬¸½ œ¸»£ú ˆÅú ]¸¸ £íú í¾A
ƒ¬¸¬¸½ ‚¥¸Š¸, ‚›¡¸ ¢¨¸¢ž¸››¸ ¬¸¿¬˜¸¸›¸ ž¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸½ ¬¸¿¤¸Ö íÿA
¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ œÏˆÅ¸£ ˆ½Å ¬¸¿¬˜¸¸›¸ ž¸¸£÷¸ú¡¸ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ˆ½Å ¢¥¸‡
‚¸¨¸¸¬¸ †µ¸ œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å œ¸¢£\¸¸¥¸›¸ Ÿ¸½¿ íÿ À-
ˆÅ. ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅA
‰¸. ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿A
Š¸. ‚›¸º¬¸»¢\¸÷¸ ¬¸íˆÅ¸£ú (‚›¸º¬¸»¢\¸÷¸ £¸]¡¸ ¬¸íˆÅ¸£ú ¤¸ÿˆÅ, ‚›¸º¬¸»¢\¸÷¸
¢{¸¥¸¸ ¬¸íˆÅ¸£ú ¤¸ÿˆÅ ‚¸¾£ ©¸í£ú ¬¸íˆÅ¸£ú ¤¸ÿˆÅ)A
39
Report on Trend and Progress of Housing in India, 2008
3.3 The Housing Finance Set-up in India
3.3.1 Housing, being a basic human need, has always
attracted the attention of the economy,
government and society. In India, the shortage
of dwellings has forced the majority of
population to live in slums and shabby shelters in
rural areas. From the last decade, the
Government of India has been continuously
trying to strengthen the housing sector by
introducing various housing loan schemes for
rural and urban population. The first attempt in
this regard was the National Housing Policy
(NHP), which was introduced in 1988. The
National Housing Bank (NHB) was set up in 1988
as an apex institution for housing finance and a
wholly-owned subsidiary of Reserve Bank of
India (RBI). Before these, HUDCO was set-up by
the Government in 1970 to meet the financial
needs of the housing and urban infrastructure.
In 1977, HDFC was set up as the first housing
finance company with the private participation.
3.3.2 Housing finance system is relatively young in
India and due to this, housing finance assistance
from formal sector has been limited to the middle
and high income groups and PLIs have not been
able to penetrate the rural areas. Besides this,
the sector is the second largest employment
generator in the country.
3.3.3 At present, the need for housing finance in India
is largely being fulfilled by the 43 Housing
Finance Companies registered with NHB and the
27 Public Sector Commercial Banks. Apart from
these, various other institutions are also involved
with housing finance. The following types of
institutions are in operation for extending
housing loans to the Indian borrowers:
a) Scheduled Commercial Banks
b) Housing Finance Companies
c) Scheduled Cooperative Banks (Scheduled State
Co-operative Banks, Scheduled District Co-op
Banks and Urban Co-op Banks)
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‹¸. ®¸½°¸ú¡¸ ŠÏ¸Ÿ¸úµ¸ ¤¸ÿˆÅ A d) Regional Rural Banks

e) Agriculture and Rural Development Banks

Œ ˆ¼Å¢«¸ ‡¨¸¿ ŠÏ¸Ÿ¸úµ¸ ¢¨¸ˆÅ¸¬¸ ¤¸ÿˆÅA
f) State Level Apex Co-operative Housing Finance
\¸. £¸]¡¸ ¬÷¸£ ˆÅú ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¢Ÿ¸¢÷¸¡¸¸¿, ‚¸¾£ Societies, and

Ž. $¸¾£-¤¸ÿˆÅˆÅ¸£ú ¢¨¸î¸ú¡¸ ˆ¿Åœ¸¢›¸¡¸¸¿/¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸/¬¨¸¡¸¿¬¸½¨¸ú g) NBFCs/MFIs/SHGs have also been lending for
¬¸¿¬˜¸¸‡¿ ž¸ú ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ „š¸¸£ ™½ £íú íÿ, ž¸¥¸½ íú ¤¸íº÷¸ ˆÅŸ¸A housing though in a small way.

Besides these, a large informal sector comprising

ƒ›¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ‡ˆÅ ¢¨¸©¸¸¥¸ ‚›¸¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸, ¢]¸¬¸Ÿ¸½¿ š¸›¸
of money lenders, individuals, friends and
„š¸¸£ ™½›¸½ ¨¸¸¥¸½, ¨¡¸¢Æ÷¸, ¢Ÿ¸°¸ ‚¸¾£ ¬¸¿¤¸¿š¸ú, ƒ÷¡¸¸¢™ ©¸¸¢Ÿ¸¥¸ íÿ, ž¸ú relatives etc is also involved in the field of
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ®¸½°¸ ¬¸½ ¬¸¿¤¸Ö íÿA housing finance.

3.4 Flow of Funds into the Construction

3.4 ¢›¸Ÿ¸¸Äµ¸ „Ô¸¸½Š¸ (¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸) Ÿ¸½¿ ¢›¸¢š¸¡¸¸½¿ ˆÅ¸
Industry (Affordable Housing)
œÏ¨¸¸í 3.4.1 Construction Finance
3.4.1 ¢›¸Ÿ¸¸Äµ¸Š¸÷¸ ¢¨¸î¸ This Scheme pertains to the Refinance of
Construction (project) Finance for Affordable
¡¸í ¡¸¸½]¸›¸¸ ¢›¸Ÿ¸¸Äµ¸Š¸÷¸ œ¸º›¸¢¨¸Äî¸ ˆ½Å ‚›¸ºˆ»Å¥¸ ¢¨¸¢ž¸››¸ œÏ¸˜¸¢Ÿ¸ˆÅ
Housing to the Primary Lending Institutions
Ÿ¸š¡¸¨¸¢÷¸Ä¡¸¸½¿ ˆ½Å {¸¢£‡ ª½µ¸ú-™¸½ ‚¸¾£ ÷¸ú›¸ ˆ½Å ›¸Š¸£¸½¿ œ¸£ ¢¨¸©¸½«¸ š¡¸¸›¸ (PLIs) with special focus on Tier II and Tier III
¬¸¿ˆ½Å›Íµ¸ ˆ½Å ¬¸¸˜¸ ¢¨¸¢ž¸››¸ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¨¸í›¸ú¡¸ cities through various intermediaries by way of
refinance. The proposed scheme draws on the
‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ¢›¸Ÿ¸¸Äµ¸ (œ¸¢£¡¸¸½]¸›¸¸) ¢¨¸î¸ ˆ½Å œ¸º›¸¢¨¸Äî¸ ˆÅ¸ œÏ¬÷¸¸¨¸
National Urban Housing & Habitat Policy 2007
ˆÅ£÷¸ú í¾A ''œÏ¬÷¸¸¢¨¸÷¸ ¡¸¸½]¸›¸¸ £¸«’ïú¡¸ ©¸í£ú ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ (NUHHP-2007) which has laid stress on
›¸ú¢÷¸, 2007'' ˆ½Å œ¸¸¬¸ ‚¸÷¸ú í¾ ¢]¸¬¸Ÿ¸½¿ ©¸í£ú ®¸½°¸¸½¿ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸ measures to respond to the housing needs in the
urban areas and the growing pressure on
{¸³£÷¸¸½¿ ˆ½Å œÏ¢÷¸ œÏ¢÷¸¢ÇÅ¡¸¸ ˆ½Å ¢¥¸‡ „œ¸¸¡¸¸½¿ œ¸£ ‚¸¾£ ‚¸¨¸¸¬¸ ‚¸¾£ housing and related infrastructure facilities. The
¬¸¿¤¸¿¢š¸÷¸ ‚¸š¸¸¢£ˆÅ ¬¸º¢¨¸š¸¸‚¸½¿ œ¸£ ¤¸[õ÷¸½ ™¤¸¸¨¸ œ¸£ œÏ¢÷¸¤¸¥¸ ¢™¡¸¸ Policy seeks to promote various types of public-
private partnerships for realizing the goal of
í¾A ¡¸í ›¸ú¢÷¸ "¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸" ˆÅ¸ ¥¸®¡¸ œÏ¸œ÷¸ ˆÅ£›¸½
“Affordable Housing for All” with special
ˆ½Å ¢¥¸‡ ˆÅƒÄ œÏˆÅ¸£ ˆÅú ¢›¸]¸ú-¬¸¸¨¸Ä]¸¢›¸ˆÅ ž¸¸Š¸ú™¸£ú ˆ½Å ¬¸¿¨¸š¸Ä›¸ ˆÅú emphasis on the urban poor. The Policy aims at
Ÿ¸¸¿Š¸ ˆÅ£÷¸ú í¾ ‚¸¾£ ©¸í£ú $¸£ú¤¸¸½¿ œ¸£ ¢¨¸©¸½«¸ ¤¸¥¸ ™½÷¸ú í¾A ›¸ú¢÷¸ ˆÅ¸ sustainable development of habitat in the
country with a view to ensuring equitable supply
¥¸®¡¸ ¬¸Ÿ¸¸]¸ ˆ½Å ¬¸ž¸ú ¨¸Š¸¸½¿Ä ˆÅ¸½ ¨¸í›¸ú¡¸ Ÿ¸»¥¡¸¸½¿ œ¸£ ž¸»¢Ÿ¸ ˆÅú „¢\¸÷¸
of land, shelter and services at affordable prices
‚¸œ¸»¢÷¸Ä, ‚¸ª¡¸ ‡¨¸¿ ¬¸½¨¸¸‡¿ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸½ ˆÅú ´¢«’ ¬¸½ ™½©¸ Ÿ¸½¿ to all sections of society. The ultimate aim is to
œ¸¡¸¸Ä¨¸¸¬¸ ˆÅ¸ ¬¸÷¸÷¸ ¢¨¸ˆÅ¸¬¸ í¾A ¥¸®¡¸ ¬¸ˆÅ¸£¸÷Ÿ¸ˆÅ ¬¸¢ÇÅ¡¸ ¢¨¸î¸ú¡¸ shift to a demand driven approach through
proactive financial sector interventions. The
®¸½°¸ ˆ½Å í¬÷¸®¸½œ¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ‡ˆÅ Ÿ¸¸¿Š¸ œÏ½¢£÷¸ ´¢«’ˆÅ¸½µ¸ Ÿ¸½¿ ¤¸™¥¸›¸½
proposed scheme is an effort in this direction and
ˆÅ¸ í¾A œÏ¬÷¸¸¢¨¸÷¸ ¡¸¸½]¸›¸¸ ƒ¬¸ ¢™©¸¸ Ÿ¸½¿ ‡ˆÅ œÏ¡¸¸¬¸ í¾ ‚¸¾£ £¸«’ïú¡¸ is consistent with the developmental and
‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅú ¢¨¸ˆÅ¸¬¸¸÷Ÿ¸ˆÅ ‡¨¸¿ ¢¨¸î¸ú¡¸ ž¸»¢Ÿ¸ˆÅ¸ ˆ½Å ‚›¸ºˆ»Å¥¸ í¾A financial role of NHB.

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3.4.2 Objectives
3.4.2 „Ó½©¡¸
Although there is all round acknowledgement of
¡¸Ô¸¢œ¸, ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸ \¸¸£¸½¿ ‚¸½£ ¬¨¸úˆÅ¸£ ˆÅú the need for Affordable Housing, its availability is
]¸¸÷¸ú í¾, ÷¸˜¸¸¢œ¸, ƒ¬¸ˆÅú „œ¸¥¸¤š¸÷¸¸ ¬¸ú¢Ÿ¸÷¸ í¾A ¬¸£ˆÅ¸£ ‚›¸º™¸›¸ limited. Government is the main provider of
grant and credit cum subsidy schemes with the
÷¸˜¸¸ †µ¸ ‡¨¸¿ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸ ¡¸¸½]¸›¸¸ ˆÅú Ÿ¸º‰¡¸ œÏ™¸÷¸¸ í¾ ‚¸¾£
volume of such loans limited on account of a
‡½¬¸½ †µ¸¸½¿ ˆÅú œÏŸ¸¸°¸¸ ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆÅú œ¸í\¸¸›¸, ¬¸¸Ÿ¸¢¡¸ˆÅ number of issues like identification of
¢ÇÅ¡¸¸›¨¸¡¸›¸, Š¸ºµ¸¨¸î¸¸, Ÿ¸ˆÅ¸›¸¸½¿ ˆÅ¸ ‚¢ž¸ˆÅ¥œ¸ ƒ÷¡¸¸¢™ ]¸¾¬¸½ ¤¸íº÷¸ ¬¸½ beneficiaries, timely implementation, quality,
design of house etc. There are also vast sections
ˆÅ¸£µ¸ ¬¸ú¢Ÿ¸÷¸ íÿA ƒ¬¸ˆ½Å vfrfjDr, ¬¸Ÿ¸¸]¸ ˆ½Å ¨¡¸¸œ¸ˆÅ ¨¸Š¸Ä ž¸ú íÿ,
of society who are not eligible under government
a ÷¸ ‚¸¨¸¸¬¸ í½÷¸º ŠÏ¸íḠœ¸¸°¸ ›¸íì íÿ
]¸¸½ ¬¸£ˆÅ¸£ú ¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ‚÷¸Š¸Ä schemes and do not find adequate number of
‚¸¾£ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ¡¸˜¸½«’ ¬¸¿‰¡¸¸ Ÿ¸½¿ ›¸íì ¥¸½ œ¸¸÷¸½ íÿA affordable houses.

3.4.3 ¡¸¸½]¸›¸¸
¨¸í›¸ú¡¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ‚¸œ¸»¢÷¸Ä ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ¬œ¸«’ ³œ¸ ¬¸½ ‡ˆÅ 3.4.3 The Construction Finance Scheme

‚¸¨¸©¡¸ˆÅ÷¸¸ í¾A ¤¸ÿˆÅˆÅ¸£ú œÏµ¸¸¥¸ú ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸ˆÅ£µ¸¸½¿, There is clearly a need for increasing the supply

¢›¸]¸ú-¬¸¸¨¸Ä]¸¢›¸ˆÅ ž¸¸Š¸ú™¸£ú ‚¸¾£ ¢›¸]¸ú ž¸¨¸›¸ ¢›¸Ÿ¸¸Ä÷¸¸‚¸½¿ ˆÅ¸½ of affordable houses. The banking system can
play a role in enhancing the supply of affordable
¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅ£ˆ½Å ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú ‚¸œ¸»¢÷¸Ä ¤¸[õ¸›¸½ Ÿ¸½¿
housing by extending financial assistance to
‡ˆÅ ž¸»¢Ÿ¸ˆÅ¸ ‚™¸ ˆÅ£ ¬¸ˆÅ÷¸ú í¾A ƒ¬¸ œÏ¡¸¸¬¸ Ÿ¸½¿ ¤¸ÿˆÅˆÅ¸£ú ®¸½°¸ ˆÅú
public agencies, PPPs and private builders etc.
¬¸¿¤¸Ö÷¸¸ ˆÅ¸½ œÏ¸½÷¬¸¸¢í÷¸ ˆÅ£›¸½ ‚¸¾£ ¬¸í¸¡¸÷¸¸ ™½›¸½ Ÿ¸½¿ ‚¸¾£ ‚œ¸›¸ú To encourage and support the banking sector's
¢¨¸ˆÅ¸¬¸¸÷Ÿ¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸ ˆ½Å ‡ˆÅ ž¸¸Š¸ ˆ½Å ³œ¸ Ÿ¸½¿, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ involvement in this endeavour and as part of its
„›¸ ‚¸¨¸¸¬¸ú¡¸ Š¸¢÷¸¢¨¸¢š¸¡¸¸½¿, ¢]¸›¸ˆÅ¸ ¥¸®¡¸ ¬¸Ÿ¸¸]¸ ˆ½Å ‡½¬¸½ ¨¸Š¸Ä íÿ, ]¸¸½ developmental role, NHB proposes to lend
‡ˆÅ ¬¸¸š¸¸£µ¸ ˆÅúŸ¸÷¸ ˆÅú ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒÄ ¨¸í›¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ, ˆÅ¸½ support to the housing activities aimed at those
œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ ™½›¸½ ˆÅ¸ œÏ¬÷¸¸¨¸ ˆÅ£÷¸¸ í¾A £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆ½Å segments of the society who may afford a

¢¨¸î¸œ¸¸½«¸µ¸, ‚¥œ¸ ‡¨¸¿ ‚¥œ¸÷¸£ Ÿ¸š¡¸ ‚¸¡¸ ‚¸¨¸¸¬¸ Š¸¿™ú-¤¸¬÷¸ú ˆ½Å moderately priced dwelling unit by way of
refinance. NHB provides refinance to banks
Ÿ¸ˆÅ¸›¸¸½¿, ‚¸¾Ô¸¸½¢Š¸ˆÅ ˆÅ¸Ÿ¸Š¸¸£¸½¿ ˆ½Å Ÿ¸ˆÅ¸›¸¸½¿, ˆÅ¸Ÿ¸ˆÅ¸]¸ú Ÿ¸¢í¥¸¸‚¸½¿ ˆ½Å
financing, low and lower middle income housing,
í¸Á¬’¥¸, ¨¸¼Ö¸¨¸¬˜¸¸ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ œ¸º›¸¢¨¸Äî¸ œ¸¸½¢«¸÷¸ ˆÅ£ ¬¸ˆÅ÷¸¸ í¾A
slum housing, industrial worker housing,
ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ œÏ¸ˆ¼Å¢÷¸ˆÅ ‚¸œ¸™¸ ¬¸½ working women hostels and old age homes,
œÏž¸¸¢¨¸÷¸ Ÿ¸ˆÅ¸›¸¸½¿ ¬¸¢í÷¸ œÏ¨¸¸¬¸ú Ÿ¸{¸™»£¸½¿ ˆ½Å ¢¥¸‡ ž¸¸’ˆÅ ‚¸¨¸¸¬¸ housing projects financed under the JNNURM
¡¸¸½]¸›¸¸‚¸½¿ ‚˜¸¨¸¸ ˆ½Å›Í ¬¸£ˆÅ¸£/£¸]¡¸ ¬¸£ˆÅ¸£ ˆÅú ¨¸¾¬¸ú íú ‚›¡¸ along with rental housing schemes for migrant
¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ¬¸¸˜¸ ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ ©¸í£ú ›¸¨¸ú›¸úˆÅ£µ¸ labour or any other similar Central
¢Ÿ¸©¸›¸ ˆ½Å ‚š¸ú›¸ ¢¨¸î¸œ¸¸½¢«¸÷¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½ ž¸ú ¢¨¸î¸ œ¸¸½¢«¸÷¸ ˆÅ£ Government/State Government scheme

¬¸ˆÅ÷¸¸ í¾A including housing affected by natural disaster.

œÏ¬÷¸¸¢¨¸÷¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ Ÿ¸½¿ ƒˆÅ¸ƒÄ ˆÅú ¥¸¸Š¸÷¸, ƒˆÅ¸ƒÄ ®¸½°¸, ž¸»¢Ÿ¸ ˆ½Å
Ÿ¸»¥¡¸ ƒ÷¡¸¸¢™ œ¸£ ˆÅ¢÷¸œ¸¡¸ œÏ¢÷¸¤¸¿š¸ ©¸¸¢Ÿ¸¥¸ íÿ, ]¸¸½ ¡¸í ¬¸º¢›¸¢©\¸÷¸ The proposed Refinance Scheme incorporates
ˆÅ£½¿Š¸½ ¢ˆÅ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆ½Å œ¸º›¸¢¨¸Äî¸ ˆÅ¸ „œ¸¡¸¸½Š¸ „\\¸ ‚¸¡¸ certain key restrictions on unit cost, unit area,
¨¸Š¸Ä ˆ½Å ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ›¸íì ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾A ¡¸í ¡¸¸½]¸›¸¸ ¨¸í›¸ú¡¸ land price etc. which will ensure that NHB's
refinance is not used for higher income housing.
‚¸¨¸¸¬¸ ˆÅ¸ ¬¸Ÿ¸¸š¸¸›¸ ˆÅ£›¸½ ¨¸¸¥¸ú ¢¨¸¢ž¸››¸ ¬¸£ˆÅ¸£ú ¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½

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¬¸Ÿœ¸»¢£÷¸ ˆÅ£›¸½ ˆÅú œ¸¢£ˆÅ¥œ¸›¸¸ ž¸ú ˆÅ£÷¸ú í¾ ¢ˆÅ›÷¸º ƒ¬¸ˆ½Å ¬¸¸˜¸ íú The Scheme also envisages supplementing the
‡ˆÅ ‚˜¸Ä®¸Ÿ¸ ¨¡¸¸œ¸¸£ œÏ¬÷¸¸¨¸ ˆÅú ž¸úA various government schemes addressing
Affordable Housing but at the same time be a
viable business proposition.
ƒ¬¸ ¡¸¸½]¸›¸¸ ˆÅ¸½ ‡ˆÅ ‡ˆÅúˆ¼Å÷¸ †µ¸ „÷œ¸¸™ ˆ½Å ž¸¸Š¸ ˆ½Å :i Ÿ¸½¿ ž¸ú
œÏ¬÷¸¸¢¨¸÷¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾, ]¸¸½ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ The Scheme is positioned as part of an
׸£¸ œ¸½©¸ ¢ˆ ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ ¢]¸¬¸ˆÅ¸ ‡ˆÅ ž¸¸Š¸ ¢›¸¢Ÿ¸Ä÷¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å integrated loan product that may be offered by
‰¸£ú™¸£¸½¿ ˆÅ¸½ œÏ™î¸ ¨¸¾¡¸¢Æ÷¸ˆÅ ‚¸¨¸¸¬¸ †µ¸ ž¸ú í¾A ¡¸í ‰¸£ú™¸£¸½¿ ˆ½Å PLIs, one part being individual housing loans
extended to the buyers of the houses
¢¥¸‡ ¢¨¸©¨¸¬÷¸ ¢¨¸î¸œ¸¸½«¸µ¸ ˆ½Å ¬¸¸˜¸ Š¸¿™ú-¤¸¬÷¸ú œ¸º›¸¢¨¸ÄˆÅ¸¬¸ ¬¸¢í÷¸
constructed. This would encourage developers
‡½¬¸½ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆÅú ‚¸¨¸¸¬¸ú¡¸
to go in for such EWS/LIG housing projects
œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ Ÿ¸½¿ ]¸º’ ]¸¸›¸½ ˆ½Å ¢¥¸‡ ¢¨¸ˆÅ¸¬¸ˆÅ¸½¿ ˆÅ¸½ œÏ¸½÷¬¸¸¢í÷¸
including slum redevelopment with assured
ˆÅ£½Š¸¸A ƒ¬¸ œÏˆÅ¸£ ¬¸½, ¡¸¢™ ‡½¬¸ú œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ¢¥¸‡ ‰¸£ú™¸£¸½¿ financing for buyers. Thus, if bookings can be
׸£¸ ¤¸º¢ˆ¿ÅŠ¸ ‚¸¡¸¸½¢]¸÷¸ ˆÅú ]¸¸ ¬¸ˆÅ÷¸ú í¾, ÷¸¤¸ ¡¸í ¤¸¸{¸¸£/Ÿ¸¸¿Š¸ organised by the buyers for such projects, it will
]¸¸½¢‰¸Ÿ¸ ˆÅ¸ (œÏ)©¸Ÿ¸›¸ ˆÅ£½Š¸¸ ‚¸¾£ ˆ½Å¨¸¥¸ ¢›¸Ÿ¸¸Äµ¸/¢›¸«œ¸¸™›¸ mitigate the market/demand risk and leave only
]¸¸½¢‰¸Ÿ¸ Ž¸½”õ½Š¸¸, ¢]¸¬¸½ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ ž¸¥¸ú-ž¸¸¿¢÷¸ construction/performance risk which the PLIs
Ÿ¸»¥¡¸¸¿¢ˆÅ÷¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿA ¡¸í ¡¸¸½]¸›¸¸ …œ¸£ [¿Š¸ ¬¸½ œÏ¸˜¸¢Ÿ¸ˆÅ can evaluate well. This scheme is proposed to be
marketed by NHB with PLIs on the above lines.
†µ¸™¸÷¸¸‚¸½¿ ˆ½Å ¬¸¸˜¸, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ ¤¸¸{¸¸£ Ÿ¸½¿ ¥¸¸ƒÄ
]¸¸›¸½ ˆ½Å ¢¥¸‡ œÏ¬÷¸¸¢¨¸÷¸ í¾A
3.4.4 Salient features

3.4.4 œÏŸ¸º‰¸ ¢¨¸©¸½«¸÷¸¸‡¿

Focus will be on Tier II and Tier III cities and slum

š¡¸¸›¸ ¬¸¿ˆ½Å›Íµ¸ ª½µ¸ú-II ‡¨¸¿ ª½µ¸ú-III ˆ½Å ›¸Š¸£¸½¿ ‚¸¾£ Ÿ¸í¸›¸Š¸£¸½¿ Ÿ¸½¿ Š¸¿™ú redevelopment projects in metros.

¤¸¬÷¸ú œ¸º›¸¢¨¸ÄˆÅ¸¬¸ ˆÅú œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ œ¸£ í¸½Š¸¸A The following housing projects will be eligible for
refinance support:
¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ‚¸¨¸¸¬¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸‡¿ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ ˆ½Å ¢¥¸‡ ŠÏ¸íá¸ í¸½Š¿ ¸ú À
ˆÅ. ‚¸¢˜¸ÄˆÅ :i ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸/Ÿ¸š¡¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä ˆ½Å ¢¥¸‡ a) Residential housing projects for EWS/LIG/MIG
categories.
¢£í¸¡¸©¸ú ‚¸¨¸¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‡¿A
b) Slum redevelopment projects.
‰¸. Š¸¿™ú-¤¸¬÷¸ú œ¸º›¸¢¨¸ÄˆÅ¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‡¿A
Š¸. Ÿ¸í¸›¸Š¸£¸½¿ ÷¸˜¸¸ ‚›¡¸ ›¸Š¸£¸½¿ Ÿ¸½¿ œÏ¨¸¸¬¸ú Ÿ¸{¸™»£¸½¿ ˆ½Å ¢¥¸‡ ž¸¸’ˆÅ c) Rental housing projects for migrant labour in
metro and other cities.
‚¸¨¸¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‡¿A
d) Community bulk loans provided by the PLIs.
‹¸. œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ œÏ™î¸ ¬¸¸Ÿ¸º™¸¢¡¸ˆÅ ˜¸¸½ˆÅ †µ¸
(with tenancy rights ensured by the municipal
(›¸Š¸£œ¸¸¢¥¸ˆÅ¸ œÏ¸¢š¸ˆÅ¸¢£¡¸¸½¿ ׸£¸ ¬¸º¢›¸¢©\¸÷¸ š¸¸£µ¸¸ ‚¢š¸ˆÅ¸£¸½¿
authorities) i.e. PLIs may finance housing
¬¸¢í÷¸) ‚˜¸¸Ä÷¸Ã œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ ž¸ú ¬¸Ÿ¸º™¸¡¸ ‚¸š¸¸¢£÷¸ projects undertaken by community based
¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ \¸¥¸¸ƒÄ ]¸¸ £íú ‚¸¨¸¸¬¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½ financial institutions.
¢¨¸î¸œ¸¸½¢«¸÷¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿA

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3.5 ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ Ÿ¸½¿ ¬¸£ˆÅ¸£ú í¬÷¸®¸½œ¸
3.5.1 Ÿ¸¸›¸¨¸ ˆÅú „]¸ú¢¨¸÷¸¸ ˆ½Å ¢¥¸‡ Ÿ¸»¥¸ž¸»÷¸ ‚¸¨¸©¡¸ˆÅ÷¸¸‚¸½¿ Ÿ¸½¿ ¬¸½ ‡ˆÅ
í¸½›¸½ ¬¸½, ‚¸¨¸¸¬¸ ›¸ ˆ½Å¨¸¥¸ ¬¸¸Ÿ¸¸¢]¸ˆÅ ‡¨¸¿ ¢¨¸î¸ú¡¸ ¬¸º£®¸¸ œÏ™¸›¸
ˆÅ£÷¸¸ í¾, ‚¢œ¸÷¸º í¾¢¬¸¡¸÷¸ ž¸ú, ]¸¸½ ¢ˆÅ¬¸ú ž¸ú ¨¡¸¢Æ÷¸ ˆÅ¸½ ‡ˆÅ Ÿ¸ˆÅ¸›¸
œ¸£ˆÅ¸¢¤¸]¸í¸½›¸½¬¸½¬¸Ÿ¸¸]¸Ÿ¸½¿ \¸¸í÷¸¸í¾A ¡¸í‡ˆÅœ¸í\¸¸›¸ˆ½Å ¬¸¸˜¸š¸›¸œÏ™¸›¸
ˆÅ£ˆ½Å, „¬¸ˆ½Å ‚¢¬÷¸÷¨¸ Ÿ¸½¿ Š¸í£¸ ¬¸¸Ÿ¸¸¢]¸ˆÅ œ¸¢£¨¸÷¸Ä›¸ ¥¸¸÷¸¸ í¾A ƒ¬¸ ÷¸£í
¬¸½ „¬¸½ „¬¸ˆ½Å ¬¸¸Ÿ¸¸¢]¸ˆÅ¨¸¸÷¸¸¨¸£µ¸¬¸½ ]¸¸½”÷õ ¸¸í¾A
3.5.2 ž¸¸£÷¸ ¬¸£ˆÅ¸£ ›¸½ ‚¸¢˜¸ÄˆÅ :i ¬¸½ ˆÅŸ¸{¸¸½£ ‡¨¸¿ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å
¥¸¸½Š¸¸½¿ œ¸£ š¡¸¸›¸ ¬¸¿ˆ½Å¢›Í÷¸ ˆÅ£›¸½ ˆ½Å ¬¸¸˜¸ ‚œ¸›¸½ ¬¸ž¸ú ›¸¸Š¸¢£ˆÅ¸½¿ ˆÅ¸½
‚¸ª¡¸ œÏ™¸›¸ ˆÅ£›¸½ ˆÅ¸ ¬¸™¾¨¸ œÏ¡¸¸¬¸ ¢ˆÅ¡¸¸ í¾A ƒ¬¸ ¢™©¸¸ Ÿ¸½¿, ¬¸£ˆÅ¸£
׸£¸ \¸¥¸¸ƒÄ ]¸¸ £íú ƒ¿¢™£¸ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸ 1985-86 ¬¸½
œ¸¢£\¸¸¥¸›¸ Ÿ¸½¿ í¾A ƒ¬¸ˆÅ¸ „Ó½©¡¸ ¢›¸Ÿ¸¸Äµ¸/$¸£ú¤¸ú £½‰¸¸ ¬¸½ ›¸ú\¸½
‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆÅ¸ „››¸¡¸›¸, ‚.]¸¸./‚.]¸.]¸¸. ¬¸½ ¬¸¿¤¸¿¢š¸÷¸
ŠÏ¸Ÿ¸úµ¸ œ¸¢£¨¸¸£¸½¿ ÷¸˜¸¸ Ÿ¸ºÆ÷¸ ¢ˆÅ‡ Š¸‡ ¤¸¿š¸º‚¸ Ÿ¸{¸™»£ ¨¸Š¸¸½¿Ä ˆ½Å ¢¥¸‡
¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅ£›¸¸ í¾A ¨¸«¸Ä 1993-94 ¬¸½ ¡¸¸½]¸›¸¸ ˆÅ¸
¢¨¸¬÷¸¸£ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ ¢ˆÅ ƒ¬¸Ÿ¸½¿ $¸¾£-‚›¸º¬¸»¢\¸÷¸ ]¸¸¢÷¸¡¸¸½¿ ‚¸¾£
‚›¸º¬¸»¢\¸÷¸ ]¸›¸ ]¸¸¢÷¸¡¸¸½¿ ‡¨¸¿ $¸£ú¤¸ú £½‰¸¸ ¬¸½ ›¸ú\¸½ ˆ½Å ŠÏ¸Ÿ¸úµ¸ $¸£ú¤¸
œ¸¢£¨¸¸£¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆ½ÅA ƒ¬¸ ¡¸¸½]¸›¸¸ ˆÅ¸ ‚¸©¸¡¸ œ¸»¨¸Ä-
¬¸¾¢›¸ˆÅ¸sa ˆ½Å œ¸¢£¨¸¸£¸½¿ ˆÅ¸½ œÏ¬¸º¢¨¸š¸¸‡¿ ž¸ú œÏ™¸›¸ ˆÅ£›¸¸ í¾A
3.5.3 31 ]¸›¸¨¸£ú, 2008 ÷¸ˆÅ ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚š¸ú›¸, ƒ¬¸ˆ½Å œÏ¸£Ÿž¸ ¬¸½
¥¸Š¸ž¸Š¸ 181.51 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸ ¤¸›¸¸‡ ]¸¸ \¸ºˆ½Å íÿ ¢]¸¬¸ œ¸£
36,900.41 ˆÅ£¸½”õ :i, ‰¸\¸Ä íº‡ íÿA ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸,
ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ˆ½Å›Íú¡¸ ¢›¸¡¸÷¸›¸ 40,322.70 ˆÅ£¸½”õ
:i, ˜¸¸A ƒ¿¢™£¸ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸ ˆ½Å Ÿ¸ˆÅ¸›¸¸½¿ ˆÅ¸ ¢›¸Ÿ¸¸Äµ¸ / „››¸¡¸›¸
ˆÅ¸ ¥¸®¡¸ 21.27 ¥¸¸‰¸ ˜¸¸A ƒ¬¸ ¥¸®¡¸ ˆ½Å Ÿ¸ºˆÅ¸¤¸¥¸½ (£¸]¡¸ ˆÅú
¢í¬¬¸½™¸£ú ¬¸¢í÷¸) 5458.01 ˆÅ£¸½”õ :i, ˆÅú ‡ˆÅ £¸¢©¸ „œ¸Š¸÷¸
ˆÅ£ˆ½Å 19.88 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸ ¢›¸¢Ÿ¸Ä÷¸ ¢ˆÅ‡ Š¸‡ / „›¸ˆÅ¸ „››¸¡¸›¸ ¢ˆÅ¡¸¸
Š¸¡¸¸ ˜¸¸ A
43
Report on Trend and Progress of Housing in India, 2008
3.5 Government Intervention in the
Housing Finance Sector
3.5.1 Housing, being one of basic requirements for
human survival, provides not only the social and
financial security but also the status which a
person acquires in the society by possessing a
house. It brings about a profound social change
in his existence, endowing him with an identity,
thus integrating him with his immediate social
milieu.
3.5.2 The Government of India has always
endeavoured towards providing shelter to its
citizens with focus on Economically Weaker
Sections and Low Income Group. Towards this
end, the Government run Indira Awas Yojana
(IAY) is in operation since 1985-86 with a view
to providing financial assistance for construction
/ up-gradation of dwelling units to the Below
Poverty line (BPL) rural households belonging to
the Scheduled Castes, Scheduled Tribes and
freed bonded labourer categories. From the year
1993-94, the scope of the scheme has been
extended to cover non-Scheduled Castes and
Scheduled Tribes rural BPL house hold families.
The Scheme also intends to provide benefits to
the families of ex-servicemen.
3.5.3 Up to 31.5.2008, about 181.51 lakh houses have
been constructed under the Scheme since its
inception with an expenditure of Rs. 36,900.41
crore. During 2007-08, Central allocation for
Rural Housing was Rs. 40,322.70 crore. The
target for construction/up-gradation of IAY
houses was 21.27 lakh. Against this target,
19.88 lakh houses were constructed/upgraded
by incurring an amount of Rs. 5,458.01 crore
(including State's share).
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
3.5.4 ž¸¸£÷¸ ¬¸£ˆÅ¸£ ›¸½ ¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ Ÿ¸ˆÅ¸›¸ œÏ™¸›¸ ˆÅ£›¸½ ˆÅ¸
„Ó½©¡¸ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ˆÅƒÄ œ¸í¥¸ ˆÅú ˜¸ìA ¨¸«¸Ä
2008 ›¸½ $¸£ú¤¸¸½¿ œ¸£ ¬¸¿ˆ½Å¢›Í÷¸ ¤¸íº÷¸ ¬¸ú ¬¸ˆÅ¸£¸÷Ÿ¸ˆÅ ›¸ú¢÷¸¡¸¸¿ ‚¸¾£
ˆÅ¸¡¸ÄÇÅŸ¸ ™½‰¸½ ˜¸½A „›¸Ÿ¸½¿ ¬¸½ ‡ˆÅ ‚¸¨¸¸¬¸ ®¸½°¸ ˆÅ¸½ ˆºÅŽ œÏ¸½÷¬¸¸í›¸ ™½›¸½
ˆ½Å ¢¥¸‡ ›¡¸»›¸÷¸Ÿ¸ ¨¸¾ˆÅ¢¥œ¸ˆÅ ˆÅ£ (Ÿ¸¾’) ‚¸š¸¸£ ˆÅ¸ ¢¨¸¬÷¸¸£ ˆÅ£›¸¸ í¾ A
3.5.5 ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ž¸¸£÷¸ ¢›¸Ÿ¸¸Äµ¸ ˆÅ¸ ‡ˆÅ Ÿ¸í÷¨¸œ¸»µ¸Ä ¬¸¿‹¸’ˆÅ í¾A ƒ¬¸
ˆÅ¸¡¸ÄÇÅŸ¸ ˆ½Å ‚š¸ú›¸, 2005 ¬¸½ 2009 ÷¸ˆÅ 60 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸ ¤¸›¸¸‡
]¸¸›¸½ íÿA ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸ ž¸¸£÷¸ ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ‚š¸ú›¸ ˆºÅ¥¸
15.52 ¥¸¸‰¸ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆÅ¸ ¢›¸Ÿ¸¸Äµ¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾A
3.5.6 ¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œ¸£ „\\¸-¬÷¸£ú¡¸ ˆÅ¸¡¸Ä™¥¸
¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅ¸ œÏ¸¨¸š¸¸›¸ ‡ˆÅ ]¸¢’¥¸ ¢¨¸«¸¡¸ í¾ ¢]¸¬¸ˆÅ¸ ¬¸¸Ÿ¸›¸¸
‚¸]¸ ž¸¸£÷¸ ˆÅ£ £í¸ í¾A 11¨¸ì œ¸¿¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚›¸ºŸ¸¸›¸¸½¿ ˆ½Å
‚›¸º¬¸¸£, ¡¸¸½]¸›¸¸ ‚¨¸¢š¸ ˆ½Å œÏ¸£Ÿž¸ Ÿ¸½¿ ©¸í£¸½¿ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅŸ¸ú
24.7 ¢Ÿ¸¢¥¸¡¸›¸ ƒˆÅ¸ƒÄ ˜¸ú, ¢]¸¬¸Ÿ¸½¿ ¬¸½ ƒ¬¸ ˆÅŸ¸ú ˆÅ¸ 99 œÏ¢÷¸©¸÷¸
‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ÷¸˜¸¸ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ¬¸½ ¬¸¿¤¸¿š¸ £‰¸÷¸¸ í¾A
ƒ¬¸½ ¢í¬¸¸¤¸ Ÿ¸½¿ ¥¸½÷¸½ íº‡, ‚¸¨¸¸¬¸ ‡¨¸¿ ©¸í£ú $¸£ú¤¸ú „œ¸©¸Ÿ¸›¸
Ÿ¸¿°¸¸¥¸¡¸ ›¸½ ‚¸¨¸¸¬¸ ¢¨¸ˆÅ¸¬¸ ¢¨¸î¸ ¢›¸Š¸Ÿ¸ ¢¥¸¢Ÿ¸’½” ˆ½Å ‚š¡¸®¸
ªú ™úœ¸ˆÅ œ¸¸£½‰¸ ˆÅú ‚š¡¸®¸÷¸¸ Ÿ¸½¿ "¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸"
œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å ¢¨¸¢ž¸››¸ œ¸í¥¸º‚¸½¿ ˆÅú ]¸¸¿\¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡,
15 ]¸›¸¨¸£ú, 2008 ˆÅ¸½ ‡ˆÅ „\\¸-¬÷¸£ú¡¸ ˆÅ¸¡¸Ä™¥¸ Š¸¢“÷¸ ¢ˆÅ¡¸¸
Š¸¡¸¸ ˜¸¸A ˆÅ¸¡¸Ä™¥¸ ›¸½ ‚œ¸›¸ú ¢£œ¸¸½’Ä œÏ¬÷¸º÷¸ ˆÅ£ ™ú í¾ ¢]¸¬¸ˆÅú \¸\¸¸Ä
‚š¡¸¸¡¸-2 ˆ½Å ‚›¸º\Ž½™ 2.5.1 Ÿ¸½¿ ˆÅú ]¸¸ \¸ºˆÅú í¾A
3.5.7 ƒ¬¸ ¨¸«¸Ä Ÿ¸½¿, ‚¸¢˜¸ÄˆÅ ˆÅ¸¡¸¸½¿Ä œ¸£ Ÿ¸¿¢°¸Ÿ¸¿”¥¸ú¡¸ ¬¸¢Ÿ¸¢÷¸ ›¸½ ©¸í£ú $¸£ú¤¸¸½¿
ˆÅ¸½ ¤¸¬¸¸›¸½ ˆ½Å ¢¥¸‡ ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸¡¸ºÆ÷¸ ¤¡¸¸]¸ ¡¸¸½]¸›¸¸ ˆÅ¸
‚›¸ºŸ¸¸½™›¸ ˆÅ£ ¢™¡¸¸A ƒ¬¸ ¡¸¸½]¸›¸¸ ¬¸½ ¬¸ž¸ú ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸
œÏ™¸›¸ ˆÅ£›¸½ ‚¸¾£ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ž¸¸£ú ˆÅŸ¸ú ˆÅ¸ ¬¸Ÿ¸¸š¸¸›¸ ˆÅ£›¸½ Ÿ¸½¿
¬¸£ˆÅ¸£ ˆ½Å œÏ¡¸¸¬¸ œ¸»£½ í¸½›¸½ ˆÅú ‚¸©¸¸ ˆÅú ]¸¸÷¸ú í¾A ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å
‚š¸ú›¸, 11¨¸ì ¡¸¸½]¸›¸¸ ˆ½Å ™¸¾£¸›¸ ¢¥¸‡ Š¸‡ 1.00 ¥¸¸‰¸ ²œ¸‡ ÷¸ˆÅ ˆ½Å
†µ¸¸½¿ ˆ½Å ¢¥¸‡ 5 œÏ¢÷¸©¸÷¸ ¨¸¸¢«¸ÄˆÅ ˆÅú ‚¸¢˜¸ÄˆÅ ¬¸í¸¡¸÷¸¸ ™ú ]¸¸‡Š¸úA
44
Report on Trend and Progress of Housing in India, 2008
3.5.4 The Government of India took several initiatives
during the year to fulfil its objectives of providing
Affordable Housing to All. The year 2008
witnessed a lot of policies and programmes
focussed on poor. One was widening of Minimum
Alternate Tax (MAT) base to provide some
incentive to the housing sector.
3.5.5 Rural housing is an important component of the
Bharat Nirman. Under the Programme, 60 lakh
houses were to be constructed from 2005 to
2009. During the year 2007-08, a total of 15.52
lakh dwellings have been constructed under
Bharat Nirman.
3.5.6 High Level Task Force on Affordable
Housing for All
Provision of affordable housing is a critical issue
that India is facing today. As per the 11th Five
Year Plan estimates, the urban housing shortage
at the commencement of Plan period was 24.7
million units, of which 99 per cent of this
shortage pertains to Economically Weaker
Sections (EWS) and Lower Income Groups (LIG).
Taking these into account, Ministry of Housing &
Urban Poverty Alleviation had set up a High Level
Task Force on the 15th January, 2008 to look into
the various aspects of providing 'Affordable
Housing for All' under the Chairmanship of Mr.
Deepak Parekh, Chairman, HDFC Limited. The
Task Force has submitted its report which has
been discussed in Chapter 2 at para 2.5.1.
3.5.7 During the year, the Cabinet Committee on
Economic Affairs approved the Interest Subsidy
Scheme for Housing the Urban Poor (ISHUP).
The Scheme is expected to supplement the
efforts of the Government to address the
massive housing shortage and provide
Affordable Housing to All. Under the Scheme, a
subsidy of 5 per cent p.a will be given for loans
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

†µ¸ ˆ½Å œ¸º›¸ž¸ºÄŠ¸÷¸¸›¸ ˆÅú ‚¨¸¢š¸ 15-20 ¨¸«¸Ä í¸½Š¸ú A £¸«’ïú¡¸ ‚¸¨¸¸¬¸ upto Rs. 1 lakh. The loan repayment period
would be 15-20 years. The National Housing
¤¸ÿˆÅ ‡¨¸¿ ‚¸¨¸¸¬¸ ÷¸˜¸¸ ›¸Š¸£ ¢¨¸ˆÅ¸¬¸ ¢›¸Š¸Ÿ¸ ¢¥¸. (픈Ÿ½) ‚¸¢˜¸ÄˆÅ
Bank and Housing & Urban Development
¬¸í¸¡¸÷¸¸ ˆ½Å ¬¸¿¢¨¸÷¸£µ¸ ‚¸¾£ œÏŠ¸¢÷¸ ˆÅú ¢›¸Š¸£¸›¸ú ˆ½Å ¢¥¸‡ ›¸¸½”¥¸ Corporation Ltd. (HUDCO) will be the nodal
‚¢ž¸ˆÅ£µ¸ í¸½¿Š¸½ ¡¸í ¬ˆÅúŸ¸ 11¨¸ì œ¸¿\¸¨¸«¸úÄ¡¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚¿÷¸ ÷¸ˆÅ agencies for disbursement of the subsidy and
monitoring the progress. The Scheme will
¬¸¿\¸¸¢¥¸÷¸ £í½Š¸ú A
remain operative till the close of the 11th five
year plan.
3.5.8 ˆ½Å›Í ¬¸£ˆÅ¸£ ¬¸½ ‚¥¸Š¸, ¢¨¸¢ž¸››¸ £¸]¡¸ ¬¸£ˆÅ¸£¸½¿ ›¸½ ž¸ú ‚¸¢˜¸ÄˆÅ :i
¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä ˆÅ¸½ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å 3.5.8 Apart from the Central Government, various
¢¥¸‡ ‚¸¨¸¸¬¸ œ¸¢£«¸™¸½¿ ‚¸¾£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¨¸¸¬¸ ‚¢ž¸ˆÅ£µ¸¸½¿ ˆÅú State Governments also took initiatives with the
involvement of Housing Boards and Public
¬¸¿¤¸Ö÷¸¸ ˆ½Å ¬¸¸˜¸ œ¸í¥¸ ˆÅú í¾ A
Housing Agencies to provide affordable housing
to the EWS/LIG categories.
3.6 ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ Ÿ¸½¿ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆÅú
ž¸»¢Ÿ¸ˆÅ¸ 3.6 RBI's Role in the Housing Finance
Sector
3.6.1 í¸¥¸ íú ˆ½Å ¬¸Ÿ¸¡¸ Ÿ¸½¿, ‚¸¨¸¸¬¸ ®¸½°¸ ¤¸ÿˆÅ ¢¨¸î¸ ˆ½Å ¬¸¨¸¸Ä¢š¸ˆÅ ‚¸ˆÅ«¸ÄˆÅ
3.6.1 In recent times, housing sector has emerged as
®¸½°¸ ˆ½Å ³œ¸ Ÿ¸½¿ „ž¸£¸ í¾A ¤¸ÿˆÅ¸½¿ ˆÅú ‚¸¨¸¸¬¸ †µ¸ ¬¸»\¸ú ˆÅú ¨¡¸¨¸¢¬˜¸÷¸ one of the most attractive sector of bank finance.
¨¸¼¢Ö ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆ½Å›Í ¬¸£ˆÅ¸£ To ensure orderly growth of housing loan

ˆÅú £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ›¸ú¢÷¸ ˆ½Å ‚›¸º¬¸£µ¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ®¸½°¸ ˆ½Å ¢¥¸‡ †µ¸
ˆ½Å œÏ¨¸¸í ˆÅ¸½ ¬¸™¾¨¸ ¬¸º¢¨¸š¸¸]¸›¸ˆÅ ¤¸›¸¸÷¸¸ £í¸ í¾A
3.6.2 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ¬¸¿¨¸š¸Ä›¸ ˆ½Å ¢¥¸‡ ƒ¬¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸
ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ›¸½ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ Š¸¢÷¸¢¨¸¢š¸¡¸¸¿ œÏ¸£Ÿž¸ ˆÅú íÿ À-
· ˆ½Å›Íú¡¸ ¢¨¸î¸ Ÿ¸¿°¸ú ׸£¸ 2007-08 ˆ½Å ˆ½Å›Íú¡¸ ¤¸]¸’ Ÿ¸½¿ ˆÅú Š¸ƒÄ
‹¸¸½«¸µ¸¸ ˆ½Å ifj.kkeLo:i ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ›¸½ ¤¡¸¸]¸ ˆÅú
¢¨¸ž¸½™ˆÅ ™£ ¡¸¸½]¸›¸¸ ˆ½Å ‚š¸ú›¸, ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅú ‚¢š¸ˆÅ÷¸Ÿ¸ £¸¢©¸
portfolios of banks, the Reserve Bank of India
has always been facilitating the flow of credit to
housing sector in pursuance of the National
Housing Policy of the Central Government.
3.6.2 The following initiatives have been undertaken
by RBI during the year to promote the housing
finance sector in India:
Consequent to the announcement made by the
Union Finance Minister in the Union Budget

œÏ¢÷¸ ¥¸¸ž¸¸˜¸úÄ 5,000/-:i, ¬¸½ ¤¸[õ¸ˆÅ£ 20,000/-:i, 2007-08, RBI raised the limit of housing loans
under the Differential Rate of Interest (DRI)
ˆÅ£ ™úA
Scheme from Rs. 5,000 to Rs. 20,000 per
· Ÿ¸ƒÄ, 2008 Ÿ¸½¿, ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ¤¸ÿˆÅ †µ¸¸½¿ ˆÅú ‚¢š¸ˆÅ÷¸Ÿ¸ £¸¢©¸ beneficiary.
‚¸š¸¸£-I ‡¨¸¿ ‚¸š¸¸£-II ˆÅ¸¡¸Ä[¸¿\¸½, ™¸½›¸¸½¿ ˆ½Å ‚š¸ú›¸ œ¸»¿]¸ú œ¸¡¸¸Äœ÷¸÷¸¸ In May 2008, the limit on bank loan for housing
ˆ½Å „Ó½©¡¸¸½¿ ˆ½Å ¢¥¸‡ ¢£¡¸¸¡¸÷¸ú ]¸¸½¢‰¸Ÿ¸ ž¸¸£ ¥¸¸Š¸» ˆÅ£›¸½ ˆ½Å „Ó½©¡¸ ¬¸½ was enhanced to Rs. 30 lakh from Rs. 20 lakh by
RBI for the purpose of applying concessional risk
ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ׸£¸ 20 ¥¸¸‰¸ :i, ¬¸½ ¤¸[õ¸ˆÅ£ 30 ¥¸¸‰¸
weights for capital adequacy purposes under
:i, ˆÅ£ ™ú Š¸ƒÄ ˜¸úA ÷¸™›¸º¬¸¸£, ]¸í¸¿ †µ¸ ¬¸½ Ÿ¸»¥¡¸ ‚›¸ºœ¸¸÷¸
both Basel I and Basel II framework.

45
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(£¸.‚¸.¤¸ÿˆÅ), ‡›¸¤¸ú‚¸½, 픈Ÿ½ ÷¸˜¸¸ ž¸¸£÷¸ú¡¸ ¬’½’ ¤¸ÿˆÅ ˆ½Å
‚¢š¸ˆÅ¸£ú ÷¸˜¸¸ ‚¸¢˜¸ÄˆÅ ‡¨¸¿ ¬¸¸¿¢‰¡¸ˆÅú (”úƒÄ‡¬¸) ˆ½Å \¸¸£ £¸]¡¸
¢›¸™½©¸ˆÅ¸½¿ ¬¸¢í÷¸ ]¸¸›¸½-Ÿ¸¸›¸½ ¢©¸®¸¸¢¨¸™¸½¿ ˆÅ¸½ ¬¸¢ŸŸ¸¢¥¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸
í¾A ‡½¬¸¸ ž¸¸£÷¸ Ÿ¸½¿ œ¸í¥¸ú ¤¸¸£ íº‚¸ í¾ ¢ˆÅ ž¸¸£÷¸ Ÿ¸½¿ í¸„¢¬¸¿Š¸
¬’¸’Ä-‚œ¸ ƒ¿”¾Æ¬¸ (¬¸»\¸ˆÅ¸¿ˆÅ) ˆ½Å ¬¸¿ˆÅ¥¸›¸ œ¸£ š¡¸¸›¸ ¢™¡¸¸ Š¸¡¸¸ í¾ A
· ŠÏ¸Ÿ¸úµ¸ ®¸½°¸ú¡¸ ¤¸ÿˆÅ¸½¿ (‚¸£‚¸£¤¸ú{¸) ˆÅú ˆÅ¸¡¸Ä©¸¾¥¸ú (œ¸Ö¢÷¸) ‡¨¸¿
¬¸¸Ÿ¸˜¡¸Ä ˆÅ¸½ ¤¸[õ¸¨¸¸ ™½›¸½ ˆ½Å ¢¥¸‡, ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ›¸½ „›¸ˆ½Å ¤¸¸½”Ä
ˆÅú ¬¸¿¬¨¸úˆ¼Å¢÷¸ ˆÅ¸ š¡¸¸›¸ ¢ˆÅ‡ ¢¤¸›¸¸, „›í½¿ ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ 20 ¥¸¸‰¸
:i, ÷¸ˆÅ ˆ½Å ¢¨¸î¸ú¡¸ †µ¸ œÏ™¸›¸ ˆÅ£›¸½ ˆÅú ¬¸úš¸ú ‚›¸ºŸ¸¢÷¸ œÏ™¸›¸ ˆÅ£
™ú í¾
· ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆ½Å ׸£¸ ›¸¾©¸›¸¥¸ í¸„¢¬¸¿Š¸ ǽŢ”’
(™ú‹¸ÄˆÅ¸¢¥¸ˆÅ ¬¸¿\¸¸¥¸›¸) œ¸¿€” ˆÅú ¬˜¸¸œ¸›¸¸ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ
‚¢š¸¢›¸¡¸Ÿ¸, 1934 ˆÅú š¸¸£¸ 46”ú(1) ˆ½Å :i Ÿ¸½¿ ]¸›¸¨¸£ú, 1989
Ÿ¸½¿ ˆÅ£ ™ú Š¸ƒÄ ˜¸ú ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ˆÅú ‚¸¡¸ ¬¸½
‡ˆÅ ˆÅ£¸½”õ :i, ˆÅú ¬¸¿ˆ½Å÷¸¸÷Ÿ¸ˆÅ ž¸¸Š¸ú™¸£ú ‚¿©¸-¢›¸¢š¸ œÏ™¸›¸ ˆÅú
Š¸ƒÄ ˜¸ú A
46
Report on Trend and Progress of Housing in India, 2008
Accordingly, where the loan to value (LTV) ratio
is equal to or less than 75 per cent, the loans up
to Rs. 30 lakh would carry a risk weight of 50 per
cent, whereas loans of higher amount would
attract a risk weight of 75 per cent. The risk
weight in the case of other loans, i.e., loans with
LTV ratio of above 75 per cent, irrespective of the
size, continue to attract 100 per cent risk weight.
RBI also permitted Tier II UCBs to extend
individual housing loans up to a maximum of Rs.
50 lakh per beneficiary of a dwelling unit subject
to extant prudential exposure limits.
'Housing Start' is considered as one of the
important economic indicators in India. To
formulating a feasible methodology for the
construction of Housing Start Up Index in the
Indian context, RBI constituted a Technical
Advisory Group (TAG) on Development of
Housing Start Up Index under the chairmanship
of Prof. Amitabh Kundu. The Group comprises
officials from the RBI, CSO, NSSO, NHB, NBO,
HUDCO, SBI, four State Directorates of
Economic and Statistics (DES) and renowned
academicians in the field. This is for the first time
that the compilation of Housing Start Up Index is
being considered in India.
To promote the functioning and competencies of
RRBs, RBI permitted them to directly finance the
housing sector up to Rs. 20 lakh, irrespective of
the area with the approval of their Board.
The National Housing Credit (Long Term
Operations) Fund was established by the
Reserve Bank in terms of Section 46 D(1) of the
Reserve Bank of India Act, 1934 in January 1989.
A token contribution of Rs. 1 crore was made to
the Fund out of the Reserve Bank's income
during 2007-08.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚š¡¸¸¡¸ -4 À ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸ œ¸¢£\¸¸¥¸›¸ ‡¨¸¿ ¢›¸«œ¸¸™ˆÅ÷¸¸

Chapter- 4 Operations and Performance of
Housing Finance Institutions

4.1 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ A 4.1 Housing Finance Companies

4.1.1- 30 ]¸»›¸, 2007 ˆ½Å ‚›¸º¬¸¸£, ˆºÅ¥¸ ‡½¬¸ú 43 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ 4.1.1 As on 30th June 2008, there were 43 HFCs to
˜¸ì ¢]¸›í½¿ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ‚¢š¸¢›¸¡¸Ÿ¸, 1987 ˆÅú š¸¸£¸ 29‡ ˆ½Å whom Certificate of Registration (CoR) were
œÏ¸¨¸š¸¸›¸¸½¿ ˆ½Å ‚›¸º¬¸¸£ œ¸¿]¸úˆÅ£µ¸ œÏŸ¸¸µ¸ œ¸°¸(¬¸ú‚¸½ ‚¸£) œÏ™¸›¸ granted in terms of the provisions of Section 29A
of the National Housing Bank Act, 1987. Of
¢ˆÅ¡¸¸ Š¸¡¸¸ í¾A ƒ›¸Ÿ¸½¿ ¬¸½ 23 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸½ ]¸›¸÷¸¸ ¬¸½ š¸›¸
these, 23 HFCs were given the CoR without
]¸Ÿ¸¸ ˆÅ£›¸½ ˆÅú ‚›¸ºŸ¸¢÷¸ ˆ½Å ¬¸¸˜¸ œ¸¿]¸úˆÅ£µ¸ œÏŸ¸¸µ¸ œ¸°¸ œÏ™¸›¸ ¢ˆÅ¡¸¸ permission to accept public deposits.
Š¸¡¸¸ í¾ A
4.1.2 The data and the analysis thereof in this chapter
4.1.2 ƒ¬¸ ‚š¡¸¸¡¸ Ÿ¸½¿ ¢™¡¸½ Š¸‡ ‚¸¿ˆÅ”õ½ ‚¸¾£ „›¸ˆÅ¸ ¢¨¸©¸¥¸½«¸µ¸ £¸.‚¸. ¤¸ÿˆÅ
are based on the information furnished in the
¬¸½ œ¸¿]¸úˆ¼Å÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ׸£¸ œÏ¬÷¸º÷¸ ¨¸¸¢«¸ÄˆÅ ¢¨¸¨¸£¢µ¸¡¸¸½¿
Annual Returns submitted by the HFCs
¬¸½ œÏ¸œ÷¸ ¬¸»\¸›¸¸ œ¸£ ‚¸š¸¸¢£÷¸ í¾A \¸»¿¢ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸ registered with NHB. As the financial year of the
¢¨¸î¸ ¨¸«¸Ä ‚œÏ¾¥¸ ¬¸½ Ÿ¸¸\¸Ä í¸½÷¸¸ í¾ ‚÷¸À ƒ¬¸ ‚š¡¸¸¡¸ Ÿ¸½¿ œÏ¬÷¸º÷¸ HFCs is from April to March, the financial data
‚¸¿ˆÅ”õ½ 31 Ÿ¸¸\¸Ä, 2008 ÷¸ˆÅ ˆ½Å íÿA ¡¸½ ‚¸¿ˆÅ”õ½ £¸.‚¸. ¤¸ÿˆÅ ¬¸½ given in this chapter is as on March 31, 2008. The
data pertains to 43 HFCs registered with NHB.
œ¸¿]¸úˆ¼Å÷¸ 43 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½ÅA ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å
The important financial indicators of the HFCs as
Ÿ¸í÷¨¸œ¸»µ¸Ä ¢¨¸î¸ú¡¸ ¬¸¿ˆ½Å÷¸ˆÅ ÷¸¸¢¥¸ˆÅ¸ 4À4 Ÿ¸½¿ ¢™¡¸½ Š¸‡ íÿ À
on March 31, 2008 are given as under:

÷¸¸¢¥¸ˆÅ¸ 4.4 À ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿

- ˆºÅŽ ¢¨¸î¸ú¡¸ ¬¸¿ˆ½Å÷¸ˆÅ
Table 4.4: HFCs - Some Financial Indicators (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
(Rs. in crore)

;Fkk 31 Ÿ¸¸\¸Ä ˆÅ¸½ ¤¸ˆÅ¸¡¸¸

Outstanding as on 31st March

¢¨¸¨¸£µ¸ Particulars ¨¸¼¢Ö % ¨¸¼¢Ö % ¨¸¼¢Ö %

2006 Growth % 2007 Growth % 2008 Growth %
(YoY) (YoY) (YoY)
\¸ºˆÅ÷¸¸ œ¸»¿]¸ú Paid up capital 3,437.70 9.18 3,680.74 7.07 4,324.13 17.48
Ÿ¸ºÆ÷¸ ‚¸£¢®¸÷¸ (¢›¸¢š¸) Free reserves 8,645.59 20.88 9,963.41 15.24 17,383.27 74.47
Net owned fund
¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ ¢›¸¢š¸
(NOF) 10,679.32 14.77 12,794.18 19.80 20,957.84 63.80
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ Public Deposits 11,538.93 -7.11 13,109.15 13.61 13,082.72 -0.20
Housing Loans Out
‚¸¨¸¸¬¸ †µ¸ ¤¸ˆÅ¸¡¸¸ standings 86,154.56 22.14 90,179.00 4.67 109,221.69 21.12
¨¸«¸Ä-™£-¨¸«¸Ä ¨¸¼¢Ö (YoY: year on year growth)

47
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

The outstanding housing loans of the top 20

¤¸”õú 20 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸ ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸ ¬¸ž¸ú HFCs were around 98.93 per cent of the total
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ׸£¸ ¢™¡¸½ Š¸‡ ˆºÅ¥¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ ¥¸Š¸ž¸Š¸ housing finance extended by HFCs (An increase
98.93 œÏ¢÷¸©¸÷¸ í¾ (¢œ¸Ž¥¸½ ¨¸«¸Ä ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ 0.93 œÏ¢÷¸©¸÷¸ ˆÅú by 0.93 per cent from last years' figure). The
¨¸¼¢Ö íºƒÄ) ƒ›¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ׸£¸ ¢ˆÅ¡¸½ Š¸‡ ¬¸¸¨¸Ä]¸¢›¸ˆÅ public deposits raised by these HFCs were
around 99.99 per cent of the total sector (An
]¸Ÿ¸¸ £¸¢©¸ ˆºÅ¥¸ ®¸½°¸ ˆÅ¸ ¥¸Š¸ž¸Š¸ 99.99 œÏ¢÷¸©¸÷¸ í¾ (¢œ¸Ž¥¸½ ¨¸«¸Ä
increase of 1.06 per cent over the last years'
ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ 1.06 œÏ¢÷¸©¸÷¸ ˆÅú ¨¸¼¢Ö íºƒÄ) ƒ›¸ ˆÅ¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ figure). The borrowings (excluding public
ˆ¿Åœ¸¢›¸¡¸¸¿½ (¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ˆ½Å ‚¢÷¸¢£Æ÷¸) ¢¥¸¡¸½ Š¸‡ †µ¸ ˆºÅ¥¸ deposits) raised by these HFCs, Rs 123799.89
®¸½°¸ ˆÅ¸ 123799.89 ˆÅ£¸½”õ ³Åœ¸¡¸½ í¾ ]¸¸½ ¥¸Š¸ž¸Š¸ 99.02 crore, were around 99.02 per cent of the total
œÏ¢÷¸©¸÷¸ í¾A (¡¸í ¢œ¸Ž¥¸½ ¨¸«¸Ä ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ 0.36 ˆ½Å ¬¸¸˜¸ sector (Rs.125017.87 cr.; an increase by 0.36 per
cent from last years' figure). Hence, these
125017.87 ˆÅ£¸½”õ ³Å. í¾) ‚÷¸‡¨¸, ƒ›¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸½ Ÿ¸¸½’½÷¸¸¾£ ¬¸½
companies can be taken to be broadly
‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ ˆÅ¸ Ÿ¸º‰¡¸ œÏ¢÷¸¢›¸¢š¸ ˆÅí¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A 픈Ÿ½, representative of the housing finance sector. The
œ¸ú‡›¸ ¤¸ú í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸.,ˆ¾Å›¸ ¢ûÅ›¸ í¸½Ÿ¬¸ ¢¥¸., ¢™¨¸¸›¸ growth rate of Public Deposits declined as there
í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸., ‚¸¢™ ]¸¾¬¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú was decrease in the amount of Public Deposits
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ˆÅú ¨¸¼¢Ö ™£ Ÿ¸½¿ ¢Š¸£¸¨¸’ ‚¸›¸½ ˆ½Å ˆÅ¸£µ¸ with HFCs like HUDCO, PNB Housing Finance
Ltd., Can Fin Homes Ltd., Dewan Housing
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸ Ÿ¸½¿ ˆÅŸ¸ú ™½‰¸ú Š¸ƒÄ ƒ¬¸ ¢£œ¸¸½’Ä Ÿ¸½¿ ‚¸ˆÅ¸£ ˆÅ¸
Finance Ltd. etc. The HFCs taken into account
š¡¸¸›¸ ¢ˆÅ‡ ¢›¸£¿÷¸£ ¢¤¸›¸¸ 100 œÏ¢÷¸©¸÷¸ ]¸¸½¢‰¸Ÿ¸ ž¸¸£ ˆÅ¸½ ‚¸ˆÅ¢«¸Ä÷¸ are HDFC, LIC Housing Finance Ltd., HUDCO,
ˆÅ£›¸½ ¨¸¸¥¸ú, ¢]¸›¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸½ ¢£œ¸¸½’Ä Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ ICICI Home Finance, Dewan Housing Finance
Š¸¡¸¸ í¾, ¨¸½ í¾ ‡\¸”ú‡ûŬ¸ú, ‡¥¸‚¸ƒÄ¬¸ú í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸., Ltd., Can Fin Homes Ltd., GIC Housing Finance
픈Ÿ½, ‚¸ƒÄ¬¸ú‚¸ƒÄ¬¸ú‚¸ƒÄ í¸½Ÿ¸ ûŸƒ›¸½¿¬¸, ¢™¨¸¸›¸ í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ Ltd., IDBI Home Finance Ltd. BHW Home Ltd.,
Cent Bank Home Finance Ltd.,GRUH Finance
¢¥¸., ˆ¾Å›¸ ¢ûÅ›¸ í¸½Ÿ¬¸ ¢¥¸., ]¸ú‚¸ƒÄ¬¸ú í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸.,
Ltd., PNB Housing Finance Ltd., Sundaram Home
‚¸ƒÄ”ú¤¸ú‚¸ƒÄ í¸½Ÿ¸ ûŸƒ›¸½¿¬¸ ¢¥¸., ¤¸ú‡\¸”¤¥¡¸» í¸½Ÿ¸ ¢¥¸., ¬¸½¿’ ¤¸ÿˆÅ Finance Ltd., DHFL Vysya Housing Finance Ltd.,
í¸½Ÿ¸ ûŸƒ›¸½¿¬¸ ¢¥¸., ŠÏí ûŸƒ›¸½¿¬¸ ¢¥¸., œ¸ú‡›¸¤¸ú í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ Indiabulls Housing Finance Ltd., REPCO Home
¢¥¸., ¬¸º›™£Ÿ¸ í¸½Ÿ¸ ûŸƒ›¸½¿¬¸ ¢¥¸., ”ú‡\¸‡ûŇ¥¸ ¨¸¾©¡¸ í¸„¢¬¸¿Š¸ Finance Ltd., AIG Home Finance India Ltd.,
ûŸƒ›¸½¿¬¸ ¢¥¸., ƒ¿¢”¡¸¸¤¸º¥¬¸ í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸.,£½œ¸ˆÅ¸½ í¸½Ÿ¸ Sahara Housing Finance Ltd. Ind Bank Housing
Ltd. and GE Money Housing Finance .
ûŸƒ›¸½¿¬¸ ¢¥¸., ‡‚¸ƒÄ]¸ú í¸½Ÿ¸ ûŸƒ›¸½¿¬¸ ƒ¿¢”¡¸¸ ¢¥¸., ¬¸í¸£¸ í¸„¢¬¸¿Š¸
ûŸƒ›¸½¿¬¸ ¢¥¸., ƒ¿” ¤¸ÿˆÅ í¸„¢¬¸¿Š¸ ¢¥¸. ‚¸¾£ ]¸úƒÄ Ÿ¸›¸ú í¸„¢¬¸¿Š¸ 4.1.3 The important financial parameters of HFCs
ûŸƒ›¸½¿¬¸ ¢¨¸¨¸£µ¸ A given at table 4.4 above have been classified into
three categories:
4.1.3 „Æ÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å Ÿ¸í÷¨¸œ¸»µ¸Ä ¢¨¸î¸ú¡¸ Ÿ¸¸œ¸™¿”¸½¿ ˆÅ¸½
„œ¸¢£¢¥¸¢‰¸÷¸ ÷¸¸¢¥¸ˆÅ¸ 4.4 Ÿ¸½¿ ¢™‰¸¸¡¸¸ Š¸¡¸¸ í¾ ‚¸¾£ „›í½¿ ÷¸ú›¸ A) HFCs in Public and Private Sector
ª½¢µ¸¡¸¸½¿ Ÿ¸½¿ ¢¨¸ž¸¸¢]¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾À
B) HFCs sponsored by Commercial Banks
ˆÅ ) ¬¸¸¨¸Ä]¸¢›¸ˆÅ ÷¸˜¸¸ ¢›¸]¸ú ®¸½°¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿A and others
‰¸) ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ‡¨¸¿ ‚›¡¸¸½¿ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿A C) HFCs classified based on deposit accepting and
non-deposit accepting
Š¸) ]¸Ÿ¸¸ ¬¨¸úˆÅ¸£ ‚¸¾£ ]¸Ÿ¸¸ ¬¨¸úˆÅ¸£ ›¸íì ˆÅ£›¸½ ¨¸¸¥¸ú ˆ½Å ‚¸š¸¸£ œ¸£
¨¸Š¸úĈ¼Å÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿A

48
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

ˆÅ - ¬¸¸¨¸Ä]¸¢›¸ˆÅ ÷¸˜¸¸ ¢›¸]¸ú ®¸½°¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ A) HFCs in Public and Private Sector

4.1.4 ¢]¸›¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸½ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ®¸½°¸ ˆÅú ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å :i Ÿ¸½¿ 4.1.4 Among the HFCs classified in public sector, three
¨¸Š¸úĈż ÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ „›¸Ÿ¸½¿ ¬¸½ ÷¸ú›¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿- 픈Ÿ½, HFCs viz HUDCO, Orissa Rural Housing and
Development Corporation and Rajiv Gandhi
„”õú¬¸¸ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ‡¨¸¿ ¢¨¸ˆÅ¸¬¸ ¢›¸Š¸Ÿ¸ ‚¸¾£ £¸]¸ú¨¸ Š¸¸¿š¸ú ŠÏ¸Ÿ¸úµ¸
Rural Housing Corporation Ltd., are government
‚¸¨¸¸¬¸ ¢›¸Š¸Ÿ¸ ¢¥¸., íÿ ]¸¸½ ¢ˆÅ ¬¸£ˆÅ¸£ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸ íÿ A sponsored. HFCs sponsored by financial
institutions/banks are
i. ˆ¾Å›¸¢œ¸€›¸ í¸½Ÿ¬¸ ¢¥¸., ˆ¾Å›¸£¸ ¤¸ÿˆÅ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸A
i. Can Fin Homes Ltd., sponsored by Canara Bank
ii. ¬¸½¿’¤¸ÿˆÅ í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸., ¬¸½¿’兩 ¤¸ÿˆÅ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ ׸£¸
ii. Centbank Home Finance Ltd., sponsored by
œÏ¸¡¸¸½¢]¸÷¸A Central Bank of India

iii. ‚¸ƒÄ¬¸ú‚¸ƒÄ¬¸ú‚¸ƒÄ í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸., ‚¸ƒÄ¬¸ú‚¸ƒÄ¬¸ú‚¸ƒÄ iii. ICICI Home Finance Ltd., sponsored by ICICI
׸£¸ œÏ¸¡¸¸½¢]¸÷¸A Bank

iv. Ind Bank Home Finance Ltd., sponsored by

iv. ƒ¿” ¤¸ÿˆÅ í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸., ƒ¿¢”¡¸›¸ ¤¸ÿˆÅ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸A
Indian Bank

v. œ¸ú‡›¸¤¸ú í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸., œ¸¿]¸¸¤¸ ›¸¾©¸›¸¥¸ ¤¸ÿˆÅ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸A v. PNB Home Finance Ltd., sponsored by Punjab
National Bank
vi. £½œ¸ˆÅ¸½ í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸., £½œ¸ˆÅ¸½ ¤¸ÿˆÅ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸A
vi. REPCO Home Finance Ltd., sponsored by REPCO
Bank
vii. ]¸ú‚¸ƒÄ¬¸ú í¸„¢¬¸¿Š¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸.A
vii. GIC Housing Finnace Ltd.,
viii. ‡¥¸‚¸ƒÄ¬¸ú í¸„¢¬¸¿Š¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸.A
viii. LIC Housing Finance Ltd.,
ix. ‚¸ƒÄ”ú¤¸ú‚¸ƒÄ í¸½Ÿ¸ œ¸€¸ƒ›¸½¿¬¸ ¢¥¸. (¡¸½ ÷¸ú›¸ ˆ¿Åœ¸¢›¸¡¸¸¿ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿
ix. IDBI Home Finance Ltd.
׸£¸ œÏ¸¡¸¸½¢]¸÷¸ íÿ)A

4.1.5 The Paid up capital is more in the Public Sector

4.1.5 ¬¸¸¨¸Ä]¸¢›¸ˆÅ ®¸½°¸ ˆÅú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ Ÿ¸½¿ \¸ºˆÅ÷¸¸-œ¸»¿]¸ú ‚¢š¸ˆÅ HFCs, while free reserves, are more in Private
í¾, ]¸¤¸¢ˆÅ Ÿ¸ºÆ÷¸ œ¸»¿]¸ú ¢›¸]¸ú ®¸½°¸ ˆÅú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ Ÿ¸½¿ ‚¢š¸ˆÅ Sector HFCs. Further, the NOF, Public deposits
and Outstanding Housing Loans are more in
í¾ ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ ¢›¸¢š¸ ‚¸¾£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸
Private Sector HFCs as may be seen from Table
£¸¢©¸ ¢›¸]¸ú ®¸½°¸ ˆÅú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ Ÿ¸½¿ ‚¢š¸ˆÅ í¾ ¢]¸¬¸½ ›¸ú\¸½ 4.4.1., below.
÷¸¸¢¥¸ˆÅ¸ 4.4.1 Ÿ¸½¿ ™½‰¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A

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÷¸¸¢¥¸ˆÅ¸ 4.4.1À ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‡¨¸¿ ¢›¸]¸ú ®¸½°¸ ˆÅú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅú ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™ˆÅ÷¸¸
Table 4.4.1: Financial Performance of HFCs in Public and Private Sector
(² œ¸¡¸½ ˆÅ£¸½” Ÿ¸½¿)
(Rs. in crore)

2006 – 07 2007 – 08

¢›¸] ¸ú ¨¸«¸Ä-™£- ¢›¸] ¸ú

¬¸¸¨¸Ä]¸¢›¸ˆÅ ˆºÅ¥¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ˆºÅ¥¸
¨¸«¸Ä ¨¸¼¢Ö
fooj.k ®¸½°¸ ®¸½°¸ % ®¸½°¸ ®¸½°¸
YoY
Particulars YoY
Public Private Growth Public Private
Total Total Growth
Sector Sector (%) Sector Sector
(%)
\¸ºˆÅ÷¸¸ œ¸»¿]¸ú Paid up
2,321.88 1,358.86 3,680.74 7.07 2,288.73 2,035.40 4,324.13 17.48
capital
Ÿ¸ºÆ÷¸ ¢£]¸¨¸Ä Free
3,551.23 6,412.18 9,963.41 15.24 4,196.03 13,187.24 17,383.27 74.47
reserves
Net
¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ owned 5,723.63 7,070.55 12,794.20 19.80 6,338.61 14,619.23 20, 957.84 63.80
¢›¸¢š¸ fund
(NOF)
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ Public
5,654.41 7,454.75 13,109.20 13.61 4,814.60 8,268.10 13,082.72 -0.20
Deposits
Housing 30,937.30 59,241.80 90,179.00 4.67 35,329.48 73,892.21 109,221.69 21.12
‚¸¨¸¸¬¸ †µ¸ Loans

All figures as on 31st March lHkh vkadM+sa rFkk 31 ekpZ vuqlkj

4.1.6 ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅú ¬¸¿‰¡¸¸ 4.1.6 The Financial performance of the HFCs
ˆºÅ¥¸ 14 í¾ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ sponsored by commercial banks viz a viz
“others” is given in table 4.4.2.
ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅú ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™ˆÅ÷¸¸ ÷¸¸¢¥¸ˆÅ¸ 4.4.2 Ÿ¸½¿ ™ú Š¸ƒÄ í¾ À
÷¸¸¢¥¸ˆÅ¸ 4.4.2À ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ÷¸˜¸¸ ‚›¡¸ ׸£¸ œÏ¸¡¸¸½¢]¸÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅú ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™ˆÅ÷¸¸
Table 4.4.2: Financial Performance of HFCs sponsored by Commercial Banks and Others
¼:i;s djksM+ esa½ (Rs. in crore)
2006-07 2007-08
‚›¡¸ ˆºÅ¥¸ ¨¸«¸Ä-™£- ¨¸¸¢µ¸¢]¡¸ˆÅ ‚›¡¸ ˆºÅ¥¸ ¨¸«¸Ä-™£-
¨¸¸¢µ¸¢]¡¸ˆÅ
¨¸«¸Ä ¨¸¼¢Ö ¤¸ÿˆÅ ¨¸«¸Ä ¨¸¼¢Ö
¤¸ÿˆÅ œÏ¸¡¸¸½¢]¸÷¸
% œÏ¸¡¸¸½¢]¸÷¸ %
‚¸.¢¨¸.ˆ¿Å.
‚¸.¢¨¸.ˆ¿Å.
Commercial Commercial
fooj.k Particulars Bank Bank Growth
Others Total Growth Others Total
sponsored sponsored (%)
(%)
HFCs’ HFCs’
\¸ºˆÅ÷¸¸ œ¸»¿]¸ú Paid up
409.24 3,271.50 3,680.74 7.07 958.07 3,366.06 4,324.13 17.48
capital
Ÿ¸ºÆ÷¸ ¢£]¸¨¸Ä Free 395.94 9,567.47 9,963.41 15.24 513.35 16,869.92 17,383.27 74.47
Reserves
Net
Owned
¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ 716.78 12,077.39 12,794.17 19.80 1,363.08 19,594.76 20,957.84 63.80
¢›¸¢š¸ Fund
(NOF)
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ Public
Deposits 597.73 12,511.43 13,109.16 13.61 600.02 12,482.68 13,082.72 -0.20
Housing
¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸ Loans 7,636.96 82,542.04 90,179.00 4.67 7,858.49 101,363.20 109,221.69 21.12
O/S
All figures as on 31st March lHkh vkadM+sa rFkk 31 ekpZ vuqlkj

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]¸Ÿ¸¸£¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ˆÅ£›¸½ ‚¸¾£ ¬¨¸úˆÅ¸£ ›¸íì ˆÅ£›¸½ ˆ½Å ‚¸š¸¸£ œ¸£
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ¨¸Š¸úĈţµ¸
4.1.7 ¨¸«¸Ä 2006 ˆ½Å ™¸¾£¸›¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ˆÅ£›¸½ ¨¸¸¥¸ú 24 ‚¸¨¸¸¬¸
¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ ˜¸ì¿ ]¸¤¸¢ˆÅ ¨¸«¸Ä 2007 ‡¨¸¿ ¨¸«¸Ä 2008 ˆ½Å ™¸¾£¸›¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿¿
¬¨¸úˆÅ¸£ ˆÅ£›¸½ ¨¸¸¥¸ú 20 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿¿ ˜¸ì¿A ¬¸¸¨¸Ä]¸¢›¸ˆÅ ¢í÷¸¸½¿ ˆÅú
¬¸º£®¸¸ í½÷¸º, ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ˆÅ£›¸½ ¨¸¸¥¸ú ˆ¿Åœ¸¢›¸¡¸¸½¿ Ÿ¸¸›¸™¿” ]¸¾¬¸½
›¡¸»›¸÷¸Ÿ¸ \¸ºˆÅ÷¸¸-œ¸»¿]¸ú ‚¸¾£ ¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ ¢›¸¢š¸, ‚¢š¸ˆÅ …¿\¸½ ˜¸½A ]¸Ÿ¸¸
£¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ˆÅ£›¸½ ¨¸¸¥¸ú ‚¸¾£ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ›¸íú¿ ˆÅ£›¸½ ¨¸¸¥¸ú
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¢¨¸î¸ú¡¸ ¢¬˜¸¢÷¸ ÷¸¸¢¥¸ˆÅ¸ 4.4.3 Ÿ¸½¿ ™©¸¸ÄƒÄ Š¸ƒÄ í¾ À
Classification based on deposit accepting and
non deposit accepting HFCs
4.1.7 There were 24 deposit accepting HFCs during the
year 2006 as against 20 deposit accepting HFCs during
each of the years 2007 and 2008. For the purpose of
protecting public interest, the deposit taking companies
have a higher stipulation in respect of parameters like
minimum paid up capital and NOF. The financial position
of the deposit taking companies vis a vis those which do
not accept deposits are given in table 4.4.3.

÷¸¸¢¥¸ˆÅ¸ 4.4.3À ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ˆÅ£›¸½ ¨¸¸¥¸ú ‚¸¾£ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ›¸íú¿ ˆÅ£›¸½ ¨¸¸¥¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅú ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™ˆÅ÷¸¸
Table 4.4.3: Financial Performance of deposit and non deposit accepting HFCs ¼:- djksM+ esa½
(Rs. in crore)
2006 - 07 2007 - 08

]¸Ÿ¸¸ ¬¨¸úˆÅ¸£›¸½ ]¸Ÿ¸¸ ¬¨¸úˆÅ¸£ ˆºÅ¥¸ ¨¸«¸Ä-™£- ¨¸«¸Ä-™£- ]¸Ÿ¸¸ ¬¨¸úˆÅ¸£ ˆºÅ¥¸ ¨¸«¸Ä-™£-
¨¸¸¥¸ú ‚¸.¢¨¸.ˆ¿Å. ›¸íì ˆÅ£›¸½½ ¨¸«¸Ä ¨¸¼¢Ö ¨¸«¸Ä ¨¸¼¢Ö ›¸íì ˆÅ£›¸½½ ¨¸«¸Ä ¨¸¼¢Ö
¨¸¸¥¸ú ‚¸.¢¨¸.ˆ¿Å % % ¨¸¸¥¸ú ‚¸.¢¨¸.ˆ¿Å %
Non - Non -
fooj.k Particulars Deposit YoY Deposit YoY
Deposit Deposit
accepting Total Growth accepting Total Growth
accepting accepting
HFCs’ (%) HFCs’ (%)
HFCs’ HFCs’
Paid up
\¸ºˆÅ÷¸¸ œ¸»¿]¸ú capital 3,363.41 317.33 3,680.74 7.07 3,982.87 341.26 4,324.13 17.48

Ÿ¸ºÆ÷¸ ¢£]¸¨¸Ä Free

Reserves
9,818.92 144.49 9,963.41 15.24 17,180.66 202.61 17,383.27 74.47

¢›¸¨¸¥¸ Net
owned 12,363.56
¬¨¸¸¢š¸ˆ¼Å÷¸ fund
430.61 12,794.17 19.80 20,447.36 510.48 20,957.84 63.80
¢›¸¢š¸ (NOF)
Public
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ Deposits
12,909.94 199.21 13,109.15 13.61 13,082.70 0.00
13,082.72
-0.20
Housing
¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ Loans 87,704.75
2,474.24 90,178.99 4.67 106,663.36 2,558.33 109,221.69 21.12
†µ¸ O/S

All figures as on 31st March lHkh vkadM+sa rFkk 31 ekpZ vuqlkj

¬¸¿¬¸¸š¸›¸ ¬¸¿ŠÏíµ¸ (¢›¸¢š¸¡¸¸¿ ]¸º’¸›¸¸ )
4.1.8 ƒ¬¸ ¢£œ¸¸½’Ä Ÿ¸½¿ 41 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ ¢›¸¢š¸¡¸¸½¿
ˆÅ¸ ‚¨¸¥¸¸½ˆÅ›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ¢]¸¬¸Ÿ¸½¿ ¡¸˜¸¸ ¨¸í 31 Ÿ¸¸\¸Ä, 2006 ˆÅ¸½
10,679.32 ˆÅ£¸½”õ ². ˜¸ú ]¸¸½ ÷¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½ 12,794.18 ˆÅ£¸½”õ
². í¸½ Š¸ƒÄ, ¡¸í œ¸¿]¸úˆ¼Å÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú 13.59 œÏ¢÷¸©¸÷¸ ¨¸¼¢Ö
™©¸¸Ä÷¸¸ í¾A ‚¤¸ ¡¸í 43 œ¸¿]¸úˆ¼Å÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú \¸ºˆÅ÷¸¸ œ¸»¿]¸ú
(œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸ ©¸½¡¸£ œ¸»¿]¸ú ¬¸¢í÷¸, ¢]¸›í½¿ ‚¢›¸¨¸¸¡¸Ä÷¸¸ ƒ¢Æ¨¸’ú Ÿ¸½¿ œ¸¢£¨¸¢÷¸Ä÷¸
í¸½›¸¸ í¾)17.48 œÏ¢÷¸©¸÷¸ ˆÅú ¨¸¼¢Ö ˆ½Å ¬¸¸˜¸ ¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½
3680.74 ˆÅ£¸½”õ ² . ˜¸ú, ¬¸½ ¤¸[õˆÅ£ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ 4324.13 ˆÅ£¸½”õ
³Å. í¸½ Š¸ƒÄA
Mobilization of Funds
4.1.8 The Net Owned Funds of the registered 41 HFCs
noted an increase of 19.8 percent from Rs. 10,679.32
crore as on March 31,2006 to Rs.12794.18 crore as on
31.03.2007 and further to Rs. 20,957.34 crore as on
31.03.2008 with the increase of 63.81 per cent with
respect to the registered 43 HFCs. The paid- up capital
of HFCs (including the preference share capital which is
compulsorily convertible into equity) increased by 17.48
per cent from Rs. 3,680.74 crore; as on 31.03.2007, to
Rs. 4,324.13; as on 31.03.2008.

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4.1.9 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆºÅ¥¸ ¤¸ˆÅ¸¡¸¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ ˆÅ¸ 4.1.9 The total outstanding public deposits with the
registered HFCs noted a marginal decrease of
¬¸¨¸½Ä®¸µ¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ¢]¸¬¸Ÿ¸½¿ 0.20 œÏ¢÷¸©¸÷¸ ˆÅú ›¸¸Ÿ¸ Ÿ¸¸°¸ ˆÅú ˆÅŸ¸ú ™]¸Ä
0.20 per cent from Rs. 13,109.15 crore as on
ˆÅú Š¸ƒÄ, ¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½½ 13,109.15 ˆÅ£¸½”õ ². ˜¸ú ]¸¸½ 31 March 31, 2007 to Rs. 13,082.72 crore as on
Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ ‹¸’ ˆÅ£ 13,082.72 ˆÅ£¸½”õ ². í¸½ Š¸ƒôA œÏ¬¸¿Š¸¨¸©¸, March 31, 2008. The growth rate of deposits had
been on a downward trend since 2003 to 2008,
¡¸í „¥¥¸½‰¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ¢ˆÅ ]¸Ÿ¸¸‚¸½¿ Ÿ¸½¿ ¨¸¼¢Ö ™£ 2003 ¬¸½ 2008
with year 2006-07 as an exception where there
÷¸ˆÅ ›¸ú\¸½ ˆÅú ‚¸½£ £íú ¢ˆ¿Å÷¸º ¨¸«¸Ä 2006-07 Ÿ¸½¿ ‡ˆÅ ‚\Žú had been an increase in the same.
¬¸ˆÅ¸£¸÷Ÿ¸ˆÅ izo`rh ™½‰¸ú Š¸ƒÄA
4.1.10 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ Ÿ¸º‰¡¸÷¸À ‚œ¸›¸ú ¢›¸¢š¸¡¸¸½¿, ƒ¢Æ¨¸’ú ‚¸¾£ 4.1.10 The HFCs primarily depend on loans from banks
and financial institutions besides their owned
¢£]¸¨¸Ä ˆ½Å ‚¥¸¸¨¸¸ ¤¸ÿˆÅ¸½¿ ÷¸˜¸¸ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ¬¸½ ¢Ÿ¸¥¸›¸½ ¨¸¸¥¸½ †µ¸¸½¿
funds-equity and reserves. Borrowing money
œ¸£ ¢›¸ž¸Ä£ ˆÅ£÷¸ú íÿA ¤¸¸¿”¸½¿ ¨¸ ¢”¤¸½¿\¸£¸½¿, ‚›÷¸À ˆÅ¸£œ¸¸½£½’ ]¸Ÿ¸¸‚¸½¿, through bonds and debentures, inter- corporate
deposits (ICDs), commercial paper, sub-
¨¸¸¢µ¸¢]¡¸ˆÅ œ¸½œ¸£, Š¸¸¾µ¸ †µ¸ ‚¸¾£ ]¸›¸÷¸¸ ¬¸½ œÏ¸œ÷¸ ¬¸¸¨¸¢š¸ˆÅ ]¸Ÿ¸¸
ordinate debt and fixed deposits from public are
£¸¢©¸¡¸¸¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å ‚¢÷¸¢£Æ÷¸ ¢›¸¢š¸¡¸¸½¿ ˆÅ½ 踸½÷¸ í¸½÷¸½ other sources of funds for HFCs. A graphical
íÿA ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å ¢œ¸Ž¥¸½ ÷¸ú›¸ ¨¸«¸¸½ô Ÿ¸½¿ †µ¸¸½¿ ˆÅú Ÿ¸¸°¸¸ ˆÅ¸½ representation of the borrowings of the HFCs on
a broad scale for the last three years, up to March
¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2008 ÷¸ˆÅ, ›¸ú\¸½ ŠÏ¸ûŠ׸£¸ ™©¸¸Ä¡¸¸ Š¸¡¸¸ í¾A ƒ¬¸½
31, 2008 is given below. It can be observed from
÷¸¸¢¥¸ˆÅ¸ 4.44 ÷¸˜¸¸ ‚¸£½‰¸ú¡¸ œÏ¬÷¸º¢÷¸ ˆÅ¸½ \¸¸’Ä 4.6 Ÿ¸½¿ ™½‰¸¸ ]¸¸ the table 4.4.4 and graphical representation of
¬¸ˆÅ÷¸¸ í¾ ¢ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¢›¸ž¸Ä£÷¸¸ ¤¸ÿˆÅ †µ¸¸½¿ ‚¸¾£ the same in Chart 4.6 that the dependence on
'bank borrowings' and 'public deposits' by HFCs
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ œ¸£ ‹¸’ú í¾ ]¸¤¸¢ˆÅ ‚›¡¸ œÏ¸¢œ÷¸¡¸¸½¿ (†µ¸¸½¿) are on the decrease while dependence on 'other
œ¸£¢›¸ž¸Ä£÷¸¸ ¤¸[õöú í¾A borrowings' was on the increase.

÷¸¸¢¥¸ˆÅ¸ 4.4.4 À „š¸¸£ (¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ¬¸¢í÷¸)

Table 4.4.4: Borrowings (including Public Deposits) ¼:- djksM+ esa½
¡¸˜¸¸ 31 Ÿ¸¸\¸Ä ˆÅ¸½ ¤¸ˆÅ¸¡¸¸ ¬¸¸¨¸Ä]¸›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸ (Rs. in crore)
Outstanding borrowing including public deposit as on 31st March

2006 2007 2008

„š¸¸£ ˆÅ¸ Type of £¸¢©¸ ˆºÅ¥¸ ˆÅ¸ % £¸¢©¸ ˆºÅ¥¸ ˆÅ¸ % £¸¢©¸ ˆºÅ¥¸ ˆÅ¸ %
œÏˆÅ¸£ borrowings
Amount % to total Amount % to total Amount % to total
Bank
¤¸¾¿ˆÅ ¬¸½ „š¸¸£ 43,685.08 44.21 48,798.49 42.35 54,755.37 39.65
borrowings
‚›¡¸ „š¸¸£ Other
43,569.31 44.10 53,301.01 46.26 70,262.50 50.88
borrowings
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ Public Deposits 11,538.93 11.67 13,109.15 11.37 13,082.72 9.47
ˆºÅ¥¸ Total 98,793.32 100.00 115,208.65 100 138,100.57 100.00

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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

60 Public Deposits (%)

44.1 46.26 50.88
Other Borrowings (%)
50 44.22
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ (%) Bank Borrowings (%)
42.36
40 39.65 ‚›¡¸ †µ¸ (%)
11.68 ¤¸ÿˆÅ †µ¸ (%)
30 11.38

20
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ (%)
10 Public Deposits (%)
-‚›¡¸ †µ¸ (%)
0 Other Borrowings (%)

-¤¸ÿˆÅ †µ¸ (%)

2005-06 Bank Borrowings (%)
2006-07
2007-08

pkVZ% 4-1 vkjs[kh; izLrqfr & vk-fo- daifu;ksa ds m/kkjksa ds izdkjksa dk izn'kZu

¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ˆÅ¸ ¨¸Š¸úĈţµ¸ Classification of Public Deposits:

¨¸Š¸úĈţµ¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ ˆÅú Ÿ¸¸°¸¸ ‚›¸º¬¸¸£ í¾À- Classification based on size of deposits:

4.1.11 ¢œ¸Ž¥¸½ ÷¸ú›¸ ¨¸«¸¸½ô ˆ½Å ‚¿÷¸ Ÿ¸½¿ ¤¸ˆÅ¸¡¸¸ ¬¸¸¨¸ô]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ ˆ½Å 4.1.11 The size-wise details of public deposits

‚¸ˆÅ¸£ ˆ½Å ‚›¸º¬¸¸£ ¢¨¸¨¸£µ¸ ÷¸¸¢¥¸ˆÅ¸ 4.5 Ÿ¸¿½ ¢™¡¸¸ Š¸¡¸¸ í¾A ¡¸˜¸¸ 31 outstanding at the end of last three years are
given in Table 4.5. The share of public deposits of
Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ ˆºÅ¥¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ Ÿ¸½¿ 1,00,000 ². ¬¸½ ‚¢š¸ˆÅ
over Rs. 1,00,000 accounted for 76.45 per cent
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ˆÅ¸ ¢í¬¬¸¸ 76.45 œÏ¢÷¸©¸÷¸ ˜¸¸ ]¸¤¸¢ˆÅ ¢œ¸Ž¥¸½
of the total deposits as on March 31,2008 as
¨¸«¸Ä ¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½ ˆºÅ¥¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ ˆÅ¸ 69.65
against 69.65 per cent of the total deposits as on
œÏ¢÷¸©¸÷¸ ˜¸¸A ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ Ÿ¸½¿ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ Ÿ¸½¿ 2004 ¬¸½
March 31. 2007. The deposits with the HFCs have
2006 ˆ½Å ™¸¾£¸›¸ Ÿ¸¸Ÿ¸»¥¸ú ¢Š¸£¸¨¸’ ‚¸ƒÄ ¢ˆ¿Å÷¸º 2006-08 ˆ½Å ™¸¾£¸›¸
declined marginally from 2004 to 2006 whereas
¨¸¼¢Ö ˆÅú œÏ¨¸¼¢î¸ ™½‰¸ú Š¸ƒÄA ¡¸í ™½‰¸¸ Š¸¡¸¸ ¢ˆÅ ¤¸”õú ‚¸¨¸¸¬¸ ¢¨¸î¸
it has shown an increasing trend during the
ˆ¿Åœ¸¢›¸¡¸¸¿ ¡¸˜¸¸ ‚¸ƒÄ¬¸ú‚¸ƒÄ¬¸ú‚¸ƒÄ í¸½Ÿ¸ ûŸƒ›¸½¿¬¸ ˆ¿Å. ¢¥¸., period 2006-2008. It has been noticed that
‡\¸”ú‡ûŬ¸ú, 픈Ÿ½, ˆ¾Å›¸ ¢ûÅ›¸ í¸½Ÿ¸ ûŸƒ›¸½¿¬¸ ¢¥¸. ‚¸¢™ ›¸½ ¬¸Ÿ¸ú®¸¸ major HFCs viz ICICI HFCL, HDFC, HUDCO, Can
‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ ]¸›¸÷¸¸ ¬¸½ ‚¢š¸ˆÅ Ÿ¸¸°¸¸ Ÿ¸½¿ š¸›¸ ]¸Ÿ¸¸ ¢ˆÅ¡¸¸A Fin Home Ltd etc., have largely mobilized public
í¸¥¸¸¿¢ˆÅ, ¢œ¸Ž¥¸½ ¨¸«¸Ä œ¸í¥¸ú ÷¸ú›¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú deposits during the period under review.
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ Ÿ¸½¿ ¢Š¸£¸¨¸’ ‚¸ƒÄ ˜¸ú, ˆ½Å¨¸¥¸ ‡\¸ ”ú ‡ûÅ ¬¸ú ˆÅ¸½ However, the growth rate of Public Deposits did
Ž¸½”õˆÅ£, ]¸í¸¿ ¨¸¼¢Ö ™£ Ÿ¸½¿ ¤¸[õ÷¸ ™]¸Ä ˆÅú Š¸ƒÄA decline from the last year, except in HDFC where
the growth rate increased.

53
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

÷¸¸¢¥¸ˆÅ¸ 4.5 À ¢£œ¸¸½’Ä ž¸½]¸›¸½ ¨¸¸¥¸ú ¬¸ž¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ Ÿ¸½¿ ‚¸ˆÅ¸£-¨¸¸£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿
Table 4.5: Size wis e public deposits with all reporting HFCs (³Å. ˆÅ£¸½”ö Ÿ¸½¿)
(Rs. in crore)

31 Ÿ¸¸\¸Ä ˆÅ¸½ ¤¸ˆÅ¸¡¸¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿

Outstanding public deposit as on 31st March
‚¸ˆÅ¸£
Size 2006 2007 2008

£¸¢©¸ ˆºÅ¥¸ ˆÅ¸ £¸¢©¸ ˆºÅ¥¸ ˆÅ¸ £¸¢©¸ ˆºÅ¥¸ ˆÅ¸

œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸
Percent Amount Percent
Amount Percent Amount
of total of total
of total
5,000 ². ÷¸ˆÅ Upto Rs. 5000 135.67 1.18 19.56 0.15 11.41 0.09
5,001 ². ¬¸½ 10,000 ². ÷¸ˆÅ Rs. 5001 to Rs. 10000 142.26 1.23 150.79 1.17 79.14 0.60
10,001 ². ¬¸½ 25,000 ². ÷¸ˆÅ Rs. 10001 to Rs. 25000 634.52 5.50 625.01 4.84 516.80 3.95
25,001 ². ¬¸½ 50,000 ². ÷¸ˆÅ Rs.25001 to Rs. 50000 1,236.25 10.71 1,458.85 11.30 1,449.05 11.08
50,001 ². ¬¸½ 1,00,000 ². ÷¸ˆÅ Rs. 50001 to Rs. 100000 1,472.17 12.76 1,664.33 12.89 1,024.11 7.83
1,00,000 ². ¬¸½ ‚¢š¸ˆÅ Over Rs. 100000 7,918.01 68.62 9190.62 69.65 10,002.20 76.45
ˆºÅ¥¸ Total 11,538.88 100.00 13,109.16 100.00 13,082.72 100.00

¤¡¸¸]¸ ™£ ˆ½Å ‚¸š¸¸£ œ¸£ ¨¸Š¸úĈţµ¸ Classification Based on Interest Rate:

4.1.12 ¬¸ž¸úœ¸¿]¸úˆ¼Å÷¸‚¸¨¸¸¬¸¢¨¸î¸ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å œ¸¸¬¸¥¸¿¢¤¸÷¸]¸Ÿ¸¸£¸¢©¸¡¸¸½¿ ˆÅ¸¤¡¸¸]¸ 4.1.12 The interest rate-wise classification of deposits
™£-¨¸¸£ ¨¸Š¸úĈţµ¸ ÷¸¸¢¥¸ˆÅ¸ 4.6 Ÿ¸½¿ ¢™¡¸¸ Š¸¡¸¸ í¾A ¡¸í œ¸¸¡¸¸ Š¸¡¸¸ í¾ ¢ˆÅ outstanding with all the registered HFCs is given
in Table 4.6. It is observed that the major part of
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å ¡¸í¸¿ ˆºÅ¥¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ ˆÅ¸ ¤¸”õ¸ ¢í¬¬¸¸ ‚˜¸¸Ä÷¸
the deposits, i.e. 54.60 per cent of the total
54.60 œÏ¢÷¸©¸÷¸ 6 ¬¸½ 9 œÏ¢÷¸©¸÷¸ ¤¡¸¸]¸ ™£ Ÿ¸½¿ í¾A ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, deposits is held by the HFCs in the range of 6 to 9
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ Ÿ¸½¿ 43.45 œÏ¢÷¸©¸÷¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸ 9 ¬¸½ 11 œÏ¢÷¸©¸÷¸ per cent. Further, the HFCs have 43.45 per cent
ˆÅú ¤¡¸¸]¸ ™£ Ÿ¸½¿ íÿ ]¸¸½ ¢ˆÅ ¢œ¸Ž¥¸½ ¨¸«¸Ä ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ¨¸¼¢Ö ™©¸¸Ä÷¸¸ í¾A ¡¸í¸¿ 11 of deposits in the interest rate range of 9 per cent
to 11 per cent which had shown marked increase
œÏ¢÷¸©¸÷¸¡¸¸„¬¸¬¸½‚¢š¸ˆÅ¤¡¸¸]¸ ™£ Ÿ¸½¿ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ Ÿ¸½¿ ¢œ¸Ž¥¸½ ÷¸ú›¸ ¨¸«¸¸½ô
from the previous years. The share of deposits at
ˆ½Å ™¸¾£¸›¸ „÷¸¸£-\¸[õ¸¨¸ í¸½÷¸¸ £í¸A the rate of interest of 11 per cent and above had
been decreasing since the last three years.

÷¸¸¢¥¸ˆÅ¸ 4.6À ¢£œ¸¸½’Ä ž¸½]¸›¸½ ¨¸¸¥¸ú ¬¸ž¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ Ÿ¸½¿ ¤¡¸¸]¸ ™£-¨¸¸£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿
Table 4.6: Interest rate-wise public deposits of all reporting HFCs (³Å. ˆÅ£¸½”ö Ÿ¸½¿)
(Rs. in crore)
Outstanding public deposit as on 31st March
¤¡¸¸]¸ ™£ (™£ œÏ¢÷¸ ¨¸«¸Ä) 2006 2007 2008
Rate of interest (Rate per ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸
£¸¢©¸ £¸¢©¸ £¸¢©¸
annum) œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸
Percent Percent Percent
Amount of total Amount of total Amount of total
¤¡¸¸]¸ £¢í÷¸ Fre e of interest 12.59 0.09
6 œÏ¢÷¸©¸÷¸ ¬¸½ ˆÅŸ¸ Below 6 percent 407.59 3.53 49.00 0.38 19.11 0.15
6 œÏ¢÷¸©¸÷¸ ¨¸ 9 œÏ¢÷¸©¸÷¸ ¬¸½ ˆÅŸ¸ 6 percent to below 9 percent 7,676.03 66.52 10058.15 76.34 7,143.39 54.60
9 œÏ¢÷¸©¸÷¸ ¨¸ 11 œÏ¢÷¸©¸÷¸ ¬¸½ ˆÅŸ¸ 9 percent to below 11 percent 2,112.20 18.31 2,398.10 18.60 5,684.25 43.45
11 œÏ¢÷¸©¸÷¸ ¨¸ 13 œÏ¢÷¸©¸÷¸ ¬¸½ ˆÅŸ¸ 11 percent to below 13 1,059.65 9.18 419.00 3.25 205.52 1.57
percent
13 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ 13 percent or more 283.41 2.46 184.91 1.43 17.86 0.14
ˆºÅ¥¸ Total 11,538.88 100.00 13,109.16 100.00 13082.72 100.00

54
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

]¸Ÿ¸¸‚¸½¿ ˆÅú œ¸¢£œ¸Æ¨¸÷¸¸ ˆ½Å ‚¸š¸¸£ œ¸£ ¨¸Š¸úĈţµ¸ Classification Based on maturity of deposits

4.1.13 ]¸Ÿ¸¸‚¸½¿ ˆÅú œ¸¢£œ¸Æ¨¸÷¸¸ ˆ½Å ‚¸š¸¸£ œ¸£ ¨¸Š¸úĈţµ¸ ˆ½Å ‡ˆÅ ¢¨¸©¥¸½«¸µ¸ 4.1.13 An analysis of maturity-wise classification of
public deposits indicates the Depositors'
¬¸½ ]¸Ÿ¸¸ˆÅ÷¸¸Ä‚¸½¿ ˆÅú œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸ œÏˆÅ’ í¸½÷¸ú í¾, ]¸í¸¿ ¨¸½ ‚œ¸›¸ú ]¸Ÿ¸¸‚¸½¿
preference for public deposits having a maturity
ˆÅú œ¸¢£œ¸Æ¨¸÷¸¸ ‚¨¸¢š¸ 24 Ÿ¸¸í ¬¸½ ‚¢š¸ˆÅ, ¢ˆ¿Å÷¸º 48 Ÿ¸¸í ¬¸½ ˆÅŸ¸ period of 24 months or more but less than 48
£‰¸÷¸½ íÿ ¢]¸¬¸½ ¢œ¸Ž¥¸½ ™¸½ ¨¸«¸¸½ô (2006‡¨¸¿ 2007) ˆÅú ]¸Ÿ¸¸‚¸½¿ Ÿ¸½¿ months as observed in the previous two years
™½‰¸¸ Š¸¡¸¸ ¨¸«¸Ä 2005-2007 ˆÅú ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ ƒ›¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸½¿ also (2006 and 2007). The share of these
Ÿ¸½¿ ¢Š¸£¸¨¸’ ™½‰¸ú Š¸ƒÄ, ]¸¤¸¢ˆÅ ¨¸«¸Ä 2007-2008 ˆÅú ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ deposits has been showing a declining trend
during the period 2005 - 2007, while an increase
¨¸¼¢Ö ™½‰¸ú Š¸ƒÄ , ¢]¸¬¸½ ÷¸¸¢¥¸ˆÅ¸ 4.7 Ÿ¸½¿ ™½‰¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A
has been observed during the period 2007-08 as
may be noted from Table 4.7

÷¸¸¢¥¸ˆÅ¸-4.7 À ]¸Ÿ¸¸‚¸½¿ ˆÅú œ¸¢£œ¸Æ¨¸÷¸¸ ˆ½Å ‚¸š¸¸£ œ¸£ ¨¸Š¸úĈţµ¸

Table 4.7: Maturity wise public deposits with all reporting HFCs (ˆÅ£¸½”õ ² œ¸¡¸½)
(Rs. in crore)

31 Ÿ¸¸\¸Ä ˆÅ¸½ ¤¸ˆÅ¸¡¸¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿

Outstanding public deposit as on 31st March ,

œ¸¢£œ¸Æ¨¸÷¸¸ ‚¨¸¢š¸ Maturity period 2006 2007 2008

ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸

œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸
£¸¢©¸ Per cent £¸¢©¸ Per cent £¸¢©¸ Per cent
Amount of total Amount of total Amount of total

Ÿ¸¸¿Š¸ ‚˜¸¨¸¸ ›¸¸½¢’¬¸ œ¸£ ž¸ºŠ¸÷¸¸›¸ Repayable on demand

12.59 0.09
or on notice
12 Ÿ¸¸í ¬¸½ ˆÅŸ¸ Less than 12 months 22.92 0.20 77.42 0.60 87.09 0.67
12 months or more but
12 Ÿ¸¸í ¡¸¸ ‚¢š¸ˆÅ ¢ˆ¿Å÷¸º 24 Ÿ¸¸í ¬¸½ ˆÅŸ¸ less than 24 months
704.15 6.10 1,734.88 13.45 1,274.07 9.74
24 Ÿ¸¸í ¡¸¸ ‚¢š¸ˆÅ ¢ˆ¿Å÷¸º 24 months or more but
3,648.33 31.62 3735.96 27.32 5,098.85 38.97
48 Ÿ¸¸í ¬¸½ ˆÅŸ¸ less than 48 months
48 months or more but
48 Ÿ¸¸í ¡¸¸ ‚¢š¸ˆÅ ¢ˆ¿Å÷¸º 60 Ÿ¸¸í ¬¸½ ˆÅŸ¸ less than 60 months
211.78 1.83 149.06 1.16 183.99 1.41
60 Ÿ¸¸í 60 months 1,608.26 13.94 1,803.77 13.99 1,491.23 11.4
60 Ÿ¸¸í ¬¸½ ‚¢š¸ˆÅ ¢ˆ¿Å÷¸º 84 Ÿ¸¸í ¬¸½ ˆÅŸ¸ More than 60 months
682.08 5.91 632.49 4.90 411.87 3.15
but less than 84 months
84 Ÿ¸¸í 84 months 1,698.22 14.72 1,593.28 12.35 1,451.04 11.09
84 Ÿ¸¸í ¬¸½ ‚¢š¸ˆÅ More than 84 months 2,963.14 25.68 3,382.30 26.23 3,071.99 23.48
ˆºÅ¥¸ Total 11,538.93 100.00 13109.15 100.00 13,082.72 100

Borrowing and other deposits (other than public

„š¸¸£ £¸¢©¸¡¸¸¿ ÷¸˜¸¸ ‚›¡¸ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿
(¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ˆ½Å ‚¢÷¸¢£Æ÷¸)
4.1.14 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å ˆºÅ¥¸ ¤¸ˆÅ¸¡¸¸ †µ¸¸½¿ (¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ˆ½Å
‚¢÷¸¢£Æ÷¸) Ÿ¸½¿ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½ 1,02,099.50 ˆÅ£¸½”ö ² œ¸¡¸½ ˜¸½, ]¸¸½
22.45 œÏ¢÷¸©¸÷¸ ˆÅú ™£ ¬¸½ ¤¸[õ÷¸½ íº‡ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½
125,017.87 ˆÅ£¸½”õ ³Åœ¸¡¸½ í¸½ Š¸‡ ˜¸½A ¤¸ÿˆÅ¸½¿ ¬¸½ ¢¥¸¡¸½ †µ¸¸½¿ ˆÅú 31
Ÿ¸¸\¸Ä, 2007 ˆÅ¸½ ¢í¬¬¸½™¸£ú 48,798.49 ˆÅ£¸½”õ ² œ¸¡¸½ ˜¸ú ]¸¸½ 31 Ÿ¸¸\¸Ä,
2008 ˆÅ¸½ 12.21 œÏ¢÷¸©¸÷¸ ˆÅú ™£ ¬¸½ ¤¸[õ÷¸½ íº‡ 54,755.37ˆÅ£¸½”õ ²
œ¸¡¸½ í¸½ Š¸ƒÄ ‚›¡¸ †µ¸ œÏ¸¢œ÷¸¡¸¸¿ 31 Ÿ¸¸\¸Ä 2007 ˆÅ¸½ 53,301.01 ˆÅ£¸½”+
³Åœ¸¡¸½ ˜¸ú, ]¸¸½ 31.82 œÏ¢÷¸©¸÷¸ ˆÅú ™£ ¬¸½ ¤¸[õ÷¸½ íº‡ 31 Ÿ¸¸\¸Ä, 2008
ˆÅ¸½ 70,262.50 ˆÅ£¸½”+ ³Åœ¸¡¸½ í¸½ Š¸ƒÄ ˜¸úA
deposits)
4.1.14 The aggregate outstanding borrowings
(excluding public deposits) of HFCs increased by
22.45 per cent to Rs. 125,017.87 as on March 31,
2008 from Rs. 102099.50 crore as on March 31,
2007. Borrowings from the banking system
increased by 12.21 per cent amounting to Rs.
54,755.37 crore as on March 31, 2008 as against
Rs. 48,798.49 crore as on March 31, 2007. 'Other
Borrowings' increased from Rs. 53,301.01 crore
as on March 31, 2007 to Rs. 70,262.50 crore as
on March 31, 2008, which shows a growth rate of
31.82 per cent.

55
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

÷¸¸¢¥¸ˆÅ¸ 4.8À ¢£œ¸¸½’Ä ž¸½]¸›¸½ ¨¸¸¥¸ú ¬¸ž¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú „š¸¸£ £¸¢©¸¡¸¸¿ ÷¸˜¸¸ ‚›¡¸ ]¸Ÿ¸¸‡¿ (¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ ˆ½Å ‚¢÷¸¢£Æ÷¸)
Table 4.8: Borrowings and other deposits (excluding public deposits) of all reporting HFCs
(ˆÅ£¸½”õ ² œ¸‡ Ÿ¸½¿ )
(Rs. in crore)

31 Ÿ¸¸\¸Ä ˆÅ¸½ ¤¸ˆÅ¸¡¸¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿

Outstanding public deposit as on 31st March
2006 2007 2008
†µ¸¸½¿ ˆÅú ¢ˆÅ¬Ÿ¸ Type of borrowings ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸
£¸¢©¸ œÏ¢÷¸©¸÷¸ £¸¢©¸ œÏ¢÷¸©¸÷¸ £¸¢©¸ œÏ¢÷¸©¸÷¸
Amount Per cent Amount Per cent Amount Per cent
total total total
¤¸ÿˆÅ †µ¸ Bank borrowings 43,685.08 50.07 48,798.49 47.80 54,755.37 43.80
‚›¡¸ †µ¸ Other borrowings 43,569.31 49.93 53,301.01 52.20 70,262.50 56.20
ˆºÅ¥¸ Total 87,254.39 100.00 102,099.50 100.00 125,017.87 100.00

‚¸¨¸¸¬¸ †µ¸ Housing Loans

4.1.15 ¬¸ž¸ú œ¸¿]¸úˆ¼Å÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å ˆºÅ¥¸ ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸,
]¸¸½ 31 Ÿ¸¸\¸Ä, 2006 ˆÅ¸½ 86154.56 ˆÅ£¸½”õ ². ˜¸½, ¨¸½ 31 Ÿ¸¸\¸Ä,
2007 ˆÅ¸½ 4.67 œÏ¢÷¸©¸÷¸ ˆÅú ¬¸¸š¸¸£µ¸ ¤¸[õ÷¸ ˆ½Å ¬¸¸˜¸ 90,179.00
ˆÅ£¸½”õ ². í¸½ Š¸‡ ÷¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ 21.12 œÏ¢÷¸©¸÷¸ ˆÅú
¨¸¼¢Ö ˆ½Å ¬¸¸˜¸ 109,221.69 ˆÅ£¸½”õ ². í¸½ Š¸‡A
4.1.15 The aggregate outstanding housing loan of all
registered HFCs, which was Rs. 86,154.56 crore
as on March 31, 2006 increased marginally by
4.67 per cent to Rs. 90,179.00 crore as on March
31, 2007 and further Rs. 1,09,221.69 crore as
on March 31, 2008 registering a growth of 21.12
percent.

ˆºÅ¥¸ †µ¸¸½¿ ˆ½Å œÏ¢÷¸©¸÷¸ ˆ½Å ³ œ¸ Ÿ¸½¿ vkokl foÙk daifu;ksa dk ‚¸¨¸¸¬¸ †µ¸
Housing Loans of HFCs as percentage of their Total Loans

¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2006 ¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2007 ¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2008

As on 31.3.2006 As on 31.3.2007 As on 31.3.2008
69.51% 81.78% 72.54%

Tenure wise analysis of loan portfolio

†µ¸ ¢›¸¨¸½©¸ ¬¸»\¸ú ˆÅ¸ ˆÅ¸¥¸¸¨¸¢š¸ ‚›¸º¬¸¸£ ¢¨¸©¥¸½«¸µ¸
4.1.16 Based on the data received from HFCs and an
4.1.16 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ¬¸½ œÏ¸œ÷¸ ‚¸¿ˆÅ”õ½ ‚¸¾£ „›¸ˆ½Å ¢¨¸©¥¸½«¸µ¸ ˆÅú
analysis of trends, it is observed that the loans of
œÏ¨¸¼¢÷÷¸ ¬¸½ ¡¸í œÏˆÅ’ í¸½÷¸¸ í¾ ¢ˆÅ 31 Ÿ¸¸\¸Ä, 2006 ˆÅ¸½ ¤¸ˆÅ¸¡¸¸ ˆºÅ¥¸ tenure above 7 years, which formed 63.14 per
‚¸¨¸¸¬¸ †µ¸¸½ ¿ 63.14 œÏ¢÷¸©¸÷¸ †µ¸¸½¿ ˆÅú ‚¨¸¢š¸ 7 ¨¸«¸Ä ¬¸½ ‚¢š¸ˆÅ cent of the total housing loans outstanding as on
‚¨¸¢š¸ ¨¸¸¥¸½ ˜¸½, ]¸¸½ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½ ¤¸[õˆÅ£ 84.83 œÏ¢÷¸©¸÷¸ March 31 2006, increased to 84.83 per cent as on
‚¸¾£ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ 86.24 œÏ¢÷¸©¸÷¸ í¸½ Š¸¡¸¸A ¡¸í ¤¸¸÷¸ œÏˆÅ’ March 31, 2007 and further increased to 86.29
per cent as on March 31, 2008. This indicates
ˆÅ£÷¸ú í¾ ¢ˆÅ †µ¸ ˆÅ÷¸¸Ä ¥¸¿¤¸ú ‚¨¸¢š¸ ˆ½Å †µ¸¸½¿ ˆÅ¸½ œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸ ™½÷¸½ íÿ A
borrowers' preference for long-term loans.

56
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

÷¸¸¢¥¸ˆÅ¸ 4.9À ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ‚¨¸¢š¸ ‚›¸º¬¸¸£ ¤¸ˆÅ¸¡¸¸ †µ¸
Table 4.9: Term-wise Housing Loans outstanding by HFCs

(³Åœ¸¡¸½ ˆÅ£¸½”õ Ÿ¸½¿)

(Rs. in crore)
As on March 31, 2008

‚¸¨¸¸¬¸ †µ¸ ˆÅú ‚¨¸¢š¸ £¸¢©¸ ˆºÅ¥¸ ˆÅ¸ œÏ¢÷¸©¸÷¸

Term of Housing Loan Amount Per cent total
1 ¨¸«¸Ä ÷¸ˆÅ Upto 1 year 1025.1 0.94
1 ¬¸½ 3 ¨¸«¸Ä 1 to 3 years 5014.81 4.61
3 ¬¸½ 5 ¨¸«¸Ä 3 to 5 years 6172.78 5.67
5 ¬¸½ 7 ¨¸«¸Ä 5 to 7 years 2766.86 2.54
7 ¨¸«¸Ä ¬¸½ ‚¢š¸ˆÅ Above 7 years 94242.14 86.29
ˆºÅ¥¸ Total 109221.69 100

‚¸ˆÅ¸£-¨¸¸£ ¬¸¿¢¨¸÷¸¢£÷¸ †µ¸ Size-wise Loan Disbursal

4.1.17 3 ¥¸¸‰¸ ²œ¸¡¸½ ÷¸ˆÅ ˆ½Å ‚¸¨¸¸¬¸ †µ¸ 2006-07 ˆ½Å ™¸¾£¸›¸
3129.65ˆÅ£¸½”õ ². ˜¸½ ]¸¸½ 2007-08 ˆ½Å ™¸¾£¸›¸ 3091.76 ˆÅ£¸½”õ
². í¸½ Š¸‡ 10 ¥¸¸‰¸ ². ¬¸½ ‚¢š¸ˆÅ ˆ½Å ‚¸¨¸¸¬¸ †µ¸¸½¿ ÷¸½]¸ú ¬¸½ ¨¸¼¢Ö
™½‰¸ú Š¸ƒÄ ]¸¸½ 2006-07 ˆ½Å ™¸¾£¸›¸ 30,995.93 ˆÅ£¸½”õ ². í¸½ Š¸‡
ƒ¬¸ œÏˆÅ¸£ ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸ ¡¸í ¬¸¿¢¨¸÷¸£µ¸ 65.65 œÏ¢÷¸©¸÷¸
ˆÅú ™£ ¬¸½ ¤¸[õˆÅ£ 20546.60 ˆÅ£¸½”õ ³Å.í¸½ Š¸¡¸¸A
4.1.18 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ׸£¸ ¢œ¸Ž¥¸½ ÷¸ú›¸ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸ ¬¸¿¢¨¸÷¸¢£÷¸
‚¸ˆÅ¸£-¨¸¸£ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅ¸½ ›¸ú\¸½ ÷¸¸¢¥¸ˆÅ¸ 4.10 Ÿ¸½¿ ™©¸¸Ä¡¸¸ Š¸¡¸¸ í¾ A
4.1.17 Individual Housing Loans up to Rs. 3 lakh
decreased from Rs. 3,129.65 crore during 2006-
07 to Rs. 3,091.76 crore during 2007-08.
Housing loans above Rs. 10 lakh increased
sharply from Rs.13,912.15 crore during 2006-07
to Rs. 20,546.60 crore and accounted for 65.65
per cent of the total housing loans disbursed
during 2007-08.
4.1.18 The size-wise disbursement of Individual
Housing Loans by HFCs in the last three years is
as given in Table 4.10:

÷¸¸¢¥¸ˆÅ¸ 4.10 À ‚¸ˆÅ¸£-¨¸¸£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ¬¸¿¢¨¸÷¸¢£÷¸ ‚¸¨¸¸¬¸ †µ¸
(³Åœ¸¡¸½ ˆÅ£¸½”õ Ÿ¸½ )¿
Table 4.10: Size- wise Disbursement of Housing Loans by HFCs (Rs. in crore)

2006 2007 2008

ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸ ˆºÅ¥¸ ˆÅ¸
‚¸ˆÅ¸£ £¸¢©¸ £¸¢©¸ £¸¢©¸
œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸ œÏ¢÷¸©¸÷¸
Size Amount Percent Amount Percent Amount Percent
total % total % total %
50,000 ². ÷¸ˆÅ Upto Rs. 50000 90.78 0.42 19.96 0.08 937.45 3.00
50,001 ². ¬¸½ 1,00,000 ². Rs. 50001 to Rs.
2,632.43 12.03 1532.85 6.20 889.69 2.84
100000
Rs. 100001 to Rs.
1,00,001 ². ¬¸½ 300000 ². 1,994.63 9.12 1576.84 6.38 1,264.62 4.04
300000
3,00,001 ². ¬¸½ 5,00,000 ². Rs.300001 to Rs.
3,121.50 14.27 2793.15 11.30 8.97
500000 2,807.86
5,00,001 ². ¬¸½ 10,00,000 ². Rs. 500001 to Rs.
5,002.55 22.88 4883.00 19.76 4,849.39 15.50
1000000
10,00,000 ². ¬¸½ ‚¢š¸ˆÅ Over Rs. 1000000 9,027.15 41.28 13912.15 56.28 20,546.60 65.65

ˆºÅ¥¸ Total 21,869.04 100.00 24717.96 100.00 31,295.61 100.00

57
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

rkfydk 4-11 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ ˆ½Å ‚›¸º¬¸¸£ ‚¸¨¸¸¬¸ †µ¸ ‰¸¸÷¸¸ Ÿ¸½¿ œÏ¨¸¼¢î¸
Table 4.11: Number of Housing Loan Accounts of HFCs
(ƒˆÅ¸ƒ¡¸¸½¿ ˆÅú ¬¸¿‰¡¸¸)
(Number of Units)
2006 2007 2008
399894 398886 390308

÷¸¸¢¥¸ˆÅ¸ 4.11 Ÿ¸½¿ ¡¸í ™½‰¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ ¢ˆÅ ¢œ¸Ž¥¸½ ÷¸ú›¸ ¨¸«¸¸½ô ˆ½Å It can be observed from the Table 4.11 that the
number of housing loan accounts of HFCs has
™¸¾£¸›¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ‚¸¨¸¸¬¸ †µ¸ ‰¸¸÷¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ Ÿ¸½¿ declined slightly over the last three years.
í¥ˆÅú ¢Š¸£¸¨¸’ ‚¸ƒÄ í¾ A
Other loans and advances
‚›¡¸ †µ¸ ÷¸˜¸¸ ‚¢ŠÏŸ¸
4.1.19 Other outstanding loans and advances of HFCs
4.1.19 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆ½Å ¤¸ˆÅ¸¡¸¸ ‚›¡¸ †µ¸ ÷¸˜¸¸ ‚¢ŠÏŸ¸¸½¿ ˆÅú £¸¢©¸ were Rs. 41,338.77 crore as on March 31,2008,
as compared to the corresponding figure of Rs.
¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ 41338.77 ˆÅ£¸½”õ ². ˜¸ú ]¸¸½ ¢œ¸Ž¥¸½ ¨¸«¸Ä 19,440.28 crore as on March 31,2007
‚˜¸¸Ä÷¸ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½ 19,440.28 ˆÅ£¸½”õ ². ˜¸ú A
Investments
¢›¸¨¸½©¸
4.1.20 Aggregate investments of HFCs stood at Rs.
4.1.20 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸ ˆºÅ¥¸ ¢›¸¨¸½©¸ ¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ 12,811.25 crore as on March 31, 2008 as against
Rs. 10,137.32 crore as on March 31, 2007.
12811.25 ˆÅ£¸½”õ ². ˜¸¸ ]¸¸½ ¢œ¸Ž¥¸½ ¨¸«¸Ä ‚˜¸¸Ä÷¸ 31 Ÿ¸¸\¸Ä, 2007
ˆÅ¸½ 10,137.32 ˆÅ£¸½”õ ². ˜¸ú A 4.1.21 During the year 2007-08, three new housing
finance companies have been granted the
4.1.21 ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸ rhu ubZ ‚¸¨¸¸¬¸ ¢¨¸î¸ daiuh;ksa ˆÅ¸½ certificate of registration without permission to
œ¸¿]¸ú¡¸›¸ œÏŸ¸¸µ¸-œ¸°¸ (¬¸ú‚¸½‚¸£)]¸¸£ú ›¸íì ¢ˆÅ¡¸¸ Š¸¡¸¸ tks accept deposit from the Public.. As on 30th June
2008, the total number of HFCs having granted
lkoZtfud tek,a Hkh Lohdkj dj ldrh gSA 30 ]¸»›¸,
CORs stood at 43 of which 23 companies have
2008 ˆ½Å ‚›¸º¬¸¸£ œ¸¿]¸ú¡¸›¸ œÏŸ¸¸µ¸ œ¸°¸ œÏ¸œ÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ been granted COR without permission to accept
ˆÅú ˆºÅ¥¸ ¬¸¿‰¡¸¸ 43 ˜¸ú ¢]¸›¸Ÿ¸½¿ ¬¸½ 23 ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ public deposits.
¬¨¸úˆÅ¸£ ˆÅ£›¸½ ˆ½Å ¢¤¸›¸¸ œ¸¿]¸ú¡¸›¸ œÏŸ¸¸µ¸-œ¸°¸ ]¸¸£ú ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾A
Registration of Housing Finance Companies
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ˆÅ¸ œ¸¿]¸úˆÅ£µ¸
4.1.22 During the year 2007-08, three new housing
finance companies namely Rose Valley Housing
4.1.22 ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸, ÷¸ú›¸ ›¸ƒÄ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ £¸½]¸ Development Finance Corporation Limited, MAS
¨¸¾¥¸ú ûŸƒ›¸½¿¬¸ ˆÅ¸œ¸¸½Ä£½©¸›¸ ¢¥¸¢Ÿ¸’½”, Ÿ¸¸¬¸ ³Å£¥¸ í¸„¢¬¸¿Š¸ ‡¿” Rural Housing and Mortgage Finance Ltd and
Ÿ¸¸’ÄŠ¸½]¸ ¢¥¸. ÷¸˜¸¸ Ÿ¸¢í¿Í¸ ³Å£¥¸ í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸. ˆÅ¸½ Mahindra Rural Housing Finance Ltd have been
granted the Certificate of Registration without
œ¸¿]¸úˆÅ£µ¸ œÏŸ¸¸µ¸-œ¸°¸ œÏ™¸›¸ ¢ˆÅ‡ Š¸¡¸½ ¢]¸›¸Ÿ¸½¿ ]¸›¸÷¸¸ ¬¸½ š¸›¸ ]¸Ÿ¸¸
permission to accept deposits from the public.
ˆÅ£›¸½ ˆÅú ¬¨¸úˆ¼Å¢÷¸ ›¸íú¿ ™ú Š¸ƒÄ ™¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½ ¡¸˜¸¸ ¥¸¸½ˆÅ Certificates of Registration previously granted to
¬¸½¨¸¸ í¸„¢¬¸¿Š¸ (‚¸¾£¿Š¸¸¤¸¸™) ûŸƒ›¸½¿¬¸ ¢¥¸., ‚¸¾£ £¸]¸ú¨¸ Š¸¸¿š¸ú 2 housing finance companies namely Lokseva
³Å£¥¸ í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ˆ¿Åœ¸›¸ú ˆÅ¸œ¸¸½Ä£½©¸›¸ ˆÅ¸ œ¸í¥¸½ ¢™‡ Š¸‡ Housing (Aurangabad) Finance Ltd. and Rajiv
Gandhi Rural Housing Fin. Corporation were
œ¸¿]¸úˆÅ£µ¸ œÏŸ¸¸µ¸-œ¸°¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ¢›¸£¬÷¸ ¢ˆÅ¡¸½ Š¸‡ Æ¡¸¸½¿¢ˆÅ ¡¸½
cancelled during the year, as these housing
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿½¿ ›¸½ ¡¸¸ ÷¸¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ ˆÅ¸£¸½¤¸¸£ Ž¸½” finance companies either went out of the
¢™¡¸¸ ¡¸¸ „›¸ ¢›¸¡¸Ÿ¸¸½¿ ˆÅ¸ ‚›¸ºœ¸¸¥¸›¸ ›¸íì ¢ˆÅ¡¸¸ ¢]¸›¸ˆ½Å ÷¸í÷¸ housing finance business or showed non-
œ¸¿]¸úˆÅ£µ¸ œÏŸ¸¸µ¸-œ¸°¸ œÏ™¸›¸ ¢ˆÅ‡ Š¸¡¸½ ˜¸½ A compliance with the conditions, subject to which
the Certificate of Registration was issued.

58
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

Policy measures
›¸ú¢÷¸Š¸÷¸ „œ¸¸¡¸
4.1.23 D u r i n g t h e y e a r, N H B h a s i s s u e d
4.1.23 ƒ¬¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ £¸.‚¸.¤¸ÿˆÅ ›¸½ ˆºÅ¥¸ ¢Ÿ¸¥¸¸ˆÅ£ ‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú
directions/guidelines on different aspects to
‡¨¸¿ ¢¨¸¢›¸¡¸Ÿ¸›¸ ˆ½Å ¢¨¸¢ž¸››¸ œ¸í¥¸º‚¸½¿ ˆÅ¸½ ¬¸º´[õ ¤¸›¸¸›¸½ ˆÅ½ ¢¥¸‡ ¢™©¸¸ strengthen the regulatory frame work from housing
¢›¸™½Ä©¸ / Ÿ¸¸Š¸Ä ™©¸ÄˆÅ ¢¤¸¿™º ]¸¸£ú ¢ˆÅ‡ A finance system as a whole.

]¸¸£ú ¢ˆÅ¡¸½ ¢›¸™½Ä©¸¸½¿ ˆÅ¸ ¬¸¿¢®¸œ÷¸ ¢¨¸¨¸£µ¸ ›¸ú\¸½ ¢™¡¸¸ Š¸¡¸¸ í¾ À-À A brief on the direction issued is given below-

(i) ¢›¸™½Ä©¸ ¬¸¿. £¸.‚¸.¤¸ÿˆÅ.‡\¸‡ûŬ¸ú.¢›¸™½Ä©¸ (i) Direction No. NHB.HFC.DIR. 20/CMD/2007

dated July 6, 2007
20/¬¸ú‡Ÿ¸”ú/2007 ¢™›¸¸¿ˆÅ 6 ]¸º¥¸¸ƒÄ, 2007 A
With effect from July 6, 2007 the Paragraph 26 in
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú (£¸‚¸¤¸ÿˆÅ) ¢›¸™½Ä©¸, 2001 ˆ½Å „œ¸ ‚›¸º\Ž½™ Sub- Explanation (3), for item (b) of Housing
(3) ˆ½Å œ¸¾£¸ŠÏ¸ûÅ 26 Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿¿Åœ¸¢›¸¡¸¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ]¸¸½¢‰¸Ÿ¸ Finance Companies (NHB) Directions, 2001
œÏž¸¸¨¸¸½¿ ˆ½Å Ÿ¸í÷¨¸ ˆÅ¸½ ¢›¸Ÿ›¸¸›¸º¬¸¸£ 6 ]¸º¥¸¸ƒÄ, 2007 Ÿ¸½¿ ¬¸¿©¸¸½š¸¢÷¸ related to risk weights have been revised in the
following manner-
¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ A

]¸¸½¢‰¸Ÿ¸ ž¸¸£
Risk Weights %

¨¸¾¡¸¢Æ÷¸ˆÅ ¬÷¸£ œ¸£ ¢™‡ Š¸‡ 20 ¥¸¸‰¸ ³Åœ¸¡¸½ ÷¸ˆÅ ˆ½Å ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅ¸½ ‚\¸¥¸ ¬¸¿œ¸¢÷¸ ˆ½Å ¤¸¿š¸ˆÅ (Ÿ¸¸’ÄŠ¸½]¸) ˆ½Å
׸£¸ ¬¸¿£¢®¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸, ¢]¸›í½¿ Ÿ¸¸›¸ˆÅ ‚¸¢¬÷¸ ˆ½Å ³Åœ¸ Ÿ¸½¿ ¨¸Š¸úĈ¼Å÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ 50
Housing loans to individuals up to Rs. 20 lakh secured by mortgage of
immovable property, which are classified as standard assets

¨¸¾¡¸¢Æ÷¸ˆÅ ¬÷¸£ œ¸£ ¢™‡ Š¸‡ 20 ¥¸¸‰¸ ³Åœ¸¡¸½ ¬¸½ ‚¢š¸ˆÅ ˆ½Å ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅ¸½ ‚\¸¥¸ ¬¸¿œ¸¢÷¸ ˆ½Å ¤¸¿š¸ˆÅ (Ÿ¸¸’ÄŠ¸½]¸)
ˆ½Å ׸£¸ ¬¸¿£¢®¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸, ¢]¸›í½¿ Ÿ¸¸›¸ˆÅ ‚¸¢¬÷¸ ˆ½Å ³Åœ¸ Ÿ¸½¿ ¨¸Š¸úĈ¼Å÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ 75
Housing loans to individuals above Rs. 20 lakh secured by mortgage of
immovable property, which are classified as standard assets

(ii) ¢›¸™½Ä©¸ ¬¸¿. £¸.‚¸.¤¸ÿˆÅ.‡\¸‡ûŬ¸ú.¢›¸™½Ä©¸ 21/¬¸ú‡Ÿ¸”ú/

(ii) Direction No. NHB.HFC.DIR. 21/CMD/
2007 ¢™›¸¸¿ˆÅ 6 ]¸º¥¸¸ƒÄ, 2007 2007 dated July 6, 2007

06 ]¸º¥¸¸ƒÄ, 2007 ¬¸½ œÏž¸¸¨¸ú, £¸.‚¸.¤¸ÿˆÅ ˆ½Å ‚¸¨¸¸¬¸ ¢¨¸î¸ With effect from July 6, 2007, in Chapter II-
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¢™©¸¸ ¢›¸™½Ä©¸ 2001 ˆ½Å ‚š¡¸¸¡¸ ii- ˆ½Å œ¸¾£¸ŠÏ¸ûÅ 11 ˆ½Å Acceptance of Public Deposits, sub-paragraph
(1) (a) of Paragraph 11 of the Housing Finance
„œ¸ œ¸¾£¸ŠÏ¸ûÅ 1(ˆÅ) ˆ½Å ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ ˆ ú ¬¨¸úˆÅ¸¡¸Ä÷¸¸ ˆ½Å ‚¿÷¸Š¸Ä÷¸
Companies (NHB) Directions, 2001 has been
¬¸¿©¸¸½š¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ‚¸¾£ ›¸‡ ¢™©¸¸ ¢›¸™½Ä©¸ ˆ½Å ‚›¸º¬¸¸£ ˆÅ¸½ƒÄ ž¸ú amended and as per new direction no housing
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ¬¸¸[½ö ¤¸¸£í œÏ¢÷¸©¸÷¸ ¨¸¸¢«¸ÄˆÅ ¬¸½ ‚¢š¸ˆÅ ¤¡¸¸]¸ finance company shall invite or accept or renew
™£ œ¸£ š¸›¸ ]¸Ÿ¸¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚¸Ÿ¸¿¢°¸÷¸ ‚˜¸¨¸¸ ¬¨¸úˆÅ¸£ ‚˜¸¨¸¸ any public deposit at a rate of interest exceeding
twelve and a half percent per annum, such
¬¸Ÿ¸ú®¸¸ ¡¸¸ œ¸º›¸Ä›¸¨¸úˆÅ£µ¸ djsxh, ƒ¬¸ œÏˆÅ¸£ ˆ½Å ¤¡¸¸]¸ ‡ˆÅ Ÿ¸¸í ˆÅú
interest being payable or compounded at rests
‚¨¸¢š¸ ¬¸½ ˆÅŸ¸ ˆ½Å ‚¸š¸¸£ œ¸£ ™½¡¸ ¡¸¸ œ¸¢£ˆÅ¢¥¸÷¸ ›¸íì í¸½¿Š¸½ A which should not be shorter than monthly rests.”

59
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
(iii) ¢›¸™½©Ä ¸ ¬¸¿. £¸.‚¸.¤¸ÿˆÅ.‡\¸‡ûŬ¸ú.¢›¸™½©Ä ¸ 22/¬¸ú‡Ÿ¸”ú/2007
¢™›¸¸¿ˆÅ 30 ›¸¨¸¿¤¸£, 2007 A
30 ›¸¨¸Ÿ¤¸£, 2007 ¬¸½ œÏž¸¸¨¸ú, £¸.‚¸.¤¸ÿˆÅ ˆ½Å ‚¸¨¸¸¬¸ ¢¨¸î¸
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¢™©¸¸ ¢›¸™½Ä©¸ 2001 ˆ½Å ‚š¡¸¸¡¸-III ¢¨¸¨¸½ˆÅœ¸»µ¸Ä Ÿ¸¸›¸™¿”
ˆ½Å œ¸¾£¸ŠÏ¸œ¸€ 27 ˆÅ¸½ ¡¸˜¸¸ ¢›¸Ÿ›¸¸›¸º¬¸¸£ œÏ¢÷¸¬˜¸¢œ¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ À-
"ž¸» ¬¸¿œ¸™¸ Ÿ¸½¿ ¢›¸¨¸½©¸, œ¸»Â]¸ú ¤¸¸]¸¸£ Ÿ¸½¿ ¢›¸¨¸½©¸/‚¢ž¸Ÿ¸º‰¸úˆÅ£µ¸ ÷¸˜¸¸
™¥¸¸¥¸¸½¿ ˆÅú ¢›¸¡¸º¢Æ÷¸ œ¸£ œÏ¢÷¸¤¸¿š¸"
ž¸»¢Ÿ¸ ‚˜¸¨¸¸ ž¸¨¸›¸ Ÿ¸½¿ ¢›¸¨¸½©¸À-
ˆÅ¸½ƒÄ ž¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ‚œ¸›¸½ ¢›¸]¸ú ž¸¨¸›¸ / ž¸»¢Ÿ¸ ˆÅ¸½ Ž¸½”õˆÅ£
ˆÅíì ž¸ú ž¸»¢Ÿ¸/ ž¸¨¸›¸ Ÿ¸½¿ ‚œ¸›¸ú œ¸»»Â]¸ú ¢›¸¢š¸ ˆÅ¸ 20 œÏ¢÷¸©¸÷¸ ¬¸½
‚¢š¸ˆÅ ˆÅú £¸¢©¸ ¢›¸¨¸½©¸ ›¸íì ˆÅ£½Š¸ú, ¤¸©¸÷¸½Ä ¢ˆÅ ƒ¬¸ œÏˆÅ¸£ ˆ½Å ¢›¸¨¸½©¸
ˆºÅ¥¸ ¢Ÿ¸¥¸¸ˆÅ£ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒÄ¡¸¸½¿ Ÿ¸½¿ ‚œ¸›¸ú ¢›¸]¸ú ¢›¸¢š¸ ˆÅ¸ ˆÅŸ¸ ¬¸½
ˆÅŸ¸ 10 œÏ¢÷¸©¸÷¸ í¸½Š¸¸ A
¬¸»\¸›¸¸ À- œ¸»Á¿]¸ú ¢›¸¢š¸ ˆÅ¸ ÷¸¸÷œ¸¡¸Ä ¬÷¸£-I œ¸»Â]¸ú ‡¨¸¿ ¬÷¸£ II œ¸»Â¿]¸ú ˆÅ¸
ˆºÅ¥¸ (£¸¢©¸) ¬¸½ íÿ
¡¸í¸Â œÏ¸¨¸š¸¸›¸ ¡¸í í¾ ¢ˆÅ ž¸»¢Ÿ¸ ¡¸¸ ž¸¨¸›¸ ‚œ¸›¸½ ˆÅ]¸Ä ˆÅ¸½ ¬¸¿÷¸¸½«¸]¸›¸ˆÅ
[¿Š¸ ¬¸½ œ¸»£¸ ˆÅ£÷¸ú í¸½ ÷¸˜¸¸ ˆÅ]¸Ä ˆÅ¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆ½Å ׸£¸ ÷¸ú›¸
¬¸¸¥¸ ˆÅú ‚¨¸¢š¸ ˆ½Å ž¸ú÷¸£ ¡¸¸ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ ¤¸[õ¸ƒÄ Š¸ƒÄ
‚¨¸¢š¸ ]¸Ÿ¸¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸, ¡¸¢™ ƒ¬¸ œÏˆÅ¸£ ˆÅú ‚¢¬÷¸¡¸¸½¿ ˆÅ¸ ¢›¸¨¸½©¸
¤¸[õ¸ƒÄ Š¸ƒÄ ¬¸úŸ¸¸ ˆ½Å ‚¿™£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ׸£¸ œ¸í¥¸½ íú
‚¢ž¸ŠÏíµ¸ Ÿ¸½¿ í¸½A
œ¸»Â]¸ú ¤¸¸]¸¸£ Ÿ¸½¿ ¢›¸¨¸½©¸ (‚¢ž¸Ÿ¸º‰¸úˆÅ£µ¸)À-
ˆÅ) œ¸»Â]¸ú ¤¸¸]¸¸£ Ÿ¸½¿ ¢›¸¨¸½©¸ í½÷¸º ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¬¸úŸ¸¸‡¿
¬¸ž¸ú ³Åœ¸¸½¿ Ÿ¸½¿, œ¸»Â]¸ú ¤¸¸]¸¸£ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ˆºÅ¥¸
‚¢ž¸Ÿ¸º‰¸úˆÅ£µ¸ (¢›¸¨¸½©¸) (¢›¸¢š¸ ‡¨¸¿ Š¸¾£ ¢›¸¢š¸ ‚¸š¸¸¢£÷¸) ¢œ¸Ž¥¸½
¨¸«¸Ä ˆ½Å 31 Ÿ¸¸\¸Ä ˆÅú ˆºÅ¥¸ ¢›¸¨¸¥¸ ¬¸¿œ¸¢î¸ (Ÿ¸¸¢¥¸¡¸÷¸) ˆÅ¸ 40 œÏ¢÷¸©¸÷¸
¬¸½ ‚¢š¸ˆÅ ›¸íì í¸½›¸¸ \¸¸¢í‡ „œ¸£¸½Æ÷¸ ¬¸úŸ¸¸ ˆ½Å ‚¿÷¸Š¸Ä÷¸ ‡ˆÅ ‚¸¨¸¸¬¸
¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆÅ¸ ©¸½¡¸£¸½¿/œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸/¢™¤¸½¿\¸£¸½, Ÿ¡¸»\¸º‚¥¸
œ¸¿€” ‚¢ž¸Ÿ¸º‰¸ ƒ¢Æ¨¸’ú ƒˆÅ¸ƒ¡¸¸½¿ ¬¸½ ¥¸½ˆÅ£ „Ô¸Ÿ¸ œ¸»Â]¸ú ¢›¸¢š¸ (œ¸ú ¬¸ú
‡œ¸€ ‡¬¸) (œ¸¿]¸úˆ¼Å÷¸ ‡¨¸¿ Š¸¾£ œ¸¿]¸úˆ¼Å÷¸ ™¸½›¸¸½¿) ˆÅ¸ ¢›¸¨¸½©¸ „¬¸ˆÅú
¢›¸¨¸¥¸ ¬¸¿œ¸¢î¸ ˆÅ¸ 20 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ›¸íì í¸½›¸¸ \¸¸¢í‡A
60
Report on Trend and Progress of Housing in India, 2008
(iii) Direction No. NHB.HFC.DIR.22/CMD/2007
dated November 30, 2007
With effect from November 30, 2007, in Chapter
III Prudential Norms, Paragraph 27 of Housing
Finance Companies (NHB) Directions, 2001 be
substituted by the following namely :-
“Restrictions on investment in real estate,
exposure to capital market, and engagement of
brokers”
INVESTMENT IN LAND OR BUILDINGS
No Housing Finance Company shall invest in land
or buildings, except for its own use, an amount
exceeding twenty per cent of its capital fund,
provided that such investment over and above
ten percent of its owned fund shall be made only
in residential units.
Note: 'Capital fund' means the aggregate of 'tier-
I capital' and 'tier-II capital'.
Provided that the land or buildings acquired in
satisfaction of its debts shall be disposed off by
the Housing Finance Company within a period of
three years or within such a period as may be
extended by the National Housing Bank, from
the date of such acquisition if the investment in
these assets together with such assets already
held by the Housing Finance Company exceeds
the above ceiling.
EXPOSURE TO CAPITAL MARKET:
(a) Limits on Housing Finance Companies'
Exposure to Capital Market
The aggregate exposure of a Housing Finance
Company to the capital market in all forms (both
fund based and non-fund based) should not
exceed 40 per cent of its net-worth as on March
31 of the previous year. Within this overall
ceiling, direct investment in shares, convertible
bonds / debentures, units of equity-oriented
mutual funds and all exposures to Venture
Capital Funds (VCFs) [both registered and
unregistered] of the Housing Finance Company
should not exceed 20 per cent of its net-worth.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

ƒ¬¸ „œ¸ œ¸¾£¸ŠÏ¸œ¸€ ˆ½Å „™Ã™½ ©¡¸ í½÷¸º ¢›¸¤¸¥¸ ¬¸¿œ¸¢î¸ ˆÅ¸ „™Ã™½ ©¡¸ ˆ½Å ‚¿÷¸Š¸Ä÷¸ Net-Worth for the purpose of this sub-paragraph
would comprise of Paid-up Capital plus Free
œÏ™î¸ œ¸»] ¸ú ˆ½Å ¬¸¸˜¸ Ÿ¸ºÆ÷¸ ‚¸£¢®¸÷¸-¢]¸¬¸Ÿ¸½¿ ©¸½¡¸£ œÏú¢Ÿ¸¡¸Ÿ¸ ©¸¸¢Ÿ¸¥¸ í¾, Reserves including Share Premium but excluding
¢ˆÅ›÷¸º œ¸º›¸Ÿ¸»¥¿ ¡¸›¸ ‚¸£¢®¸÷¸ ˆÅ¸½ Ž¸½”ˆõ Å£, ƒ¬¸ˆ½Å ¬¸¸˜¸ íú ƒ¬¸ˆ½Å ‚¿÷¸Š¸Ä÷¸ Revaluation Reserves, plus Investment
Fluctuation Reserve and credit balance in Profit
¢›¸¨¸½©¸ „÷¸¸£-\¸[õ¸¨¸ ‚¸£¢®¸÷¸ ÷¸˜¸¸ ¥¸¸ž¸ ‡¨¸¿ í¸¢›¸ ¥¸½‰¸¸ Ÿ¸½¿ ]¸Ÿ¸¸ ©¸½«¸,
& Loss Account, less debit balance in Profit and
¥¸¸ž¸ ‡¨¸¿ í¸¢›¸ ¥¸½‰¸¸ Ÿ¸½¿ ‹¸’¸ ]¸Ÿ¸¸ ©¸½«¸, ¬¸¿¢\¸÷¸ í¸¢›¸¡¸¸ ‡¨¸¿ í¸¢›¸ ¥¸½‰¸¸ Loss Account, Accumulated Losses and
Ÿ¸½¿ ‹¸’¸ ]¸Ÿ¸¸ ©¸½«¸, ¬¸¿¢\¸÷¸ í¸¢›¸¡¸¸¿ ‡¨¸¿ ‚Ÿ¸»÷¸Ä ‚¢¬÷¸¡¸¸¿ ‚¸¢™ ©¸¸¢Ÿ¸¥¸ Intangible Assets. No general or specific
provisions should be included in computation of
í¾A ¢›¸¤¸¥¸ ¬¸¿œ¸¢î¸ ˆ½Å œ¸¢£ˆÅ¥¸›¸ Ÿ¸½¿ ˆÅ¸½ƒÄ ¬¸¸Ÿ¸¸›¡¸ ¡¸¸ ¢¨¸¢©¸«’ œÏ¸¨¸š¸¸›¸ net worth. Infusion of capital through equity
›¸íì ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A ƒ¢Æ¨¸’ú ©¸½¡¸£ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ œ¸»] ¸ú ˆÅ¸ shares, either through domestic issues or
overseas floats after the published balance sheet
‚›¸ºœÏ½£µ¸, \¸¸í½ ¨¸ ‹¸£½¥¸» ¢›¸Š¸ÄŸ¸ í¸½ ¡¸¸ ¢¨¸™½©¸ú ¢›¸Š¸ÄŸ¸ í¸½ ÷¸º¥¸›¸ œ¸°¸ ˆÅú
date, may also be taken into account for
œÏˆÅ¸©¸›¸ ¢÷¸¢˜¸ ˆÅ¸½ ž¸ú œ¸»] ¸ú ¤¸¸]¸¸£ Ÿ¸½¿ ¢›¸¨¸½©¸ ˆÅú ¬¸úŸ¸¸ ˆ½Å ¢›¸š¸¸Ä£µ¸ ˆ½Å determining the ceiling on exposure to capital
¢¥¸‡ Š¸µ¸›¸¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸½¸¿ ˆÅ¸½ market. Housing Finance Company shall furnish
to the National Housing Bank, statutory auditor's
„œ¸£¸½Æ÷¸ „™Ã™½ ©¡¸ í½÷¸º ™¸½¤¸¸£¸ ‚›¸ºŸ¸¢÷¸ ¥¸½›¸½ ¬¸½ œ¸í¥¸½ ˆ½Å ¬¸Ÿ¸®¸ œ¸»] ¸ú ˆ½Å certificate on completion of the augmentation of
¬¸¿¨¸š¸Ä›¸ˆ½Å œ¸»£¸í¸½›¸½ ˆÅ¸¬¸¸¿¢¨¸¢š¸ˆÅ¥¸½‰¸¸œ¸£ú®¸¸œÏŸ¸¸µ¸œ¸°¸œÏ¬÷¸º÷¸ˆÅ£›¸¸í¸½Š¸¸ A capital before reckoning the same for above
purpose.
‰¸) œ¸»»Â]¸ú ¤¸¸]¸¸£ ‚¢ž¸Ÿ¸º‰¸úˆÅ£µ¸ (¢›¸¨¸½©¸) ˆ½Å ‹¸’ˆÅÀ- (b) Components of Capital Market Exposure

‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆ½Å œ¸»] ¸ú ¤¸¸]¸¸£ ‚¢ž¸Ÿ¸º‰¸úˆÅ£µ¸ ˆ½Å ‚¿÷¸Š¸Ä÷¸ Capital Market Exposure of Housing Finance
Company shall include both their direct
œÏ÷¡¸®¸ ‡¨¸¿ ‚œÏ÷¡¸®¸, ™¸½›¸¸½¿ ¢›¸¨¸½©¸ ©¸¸¢Ÿ¸¥¸ í¸½Š¿ ¸½ ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸
exposures and indirect exposures. The
ˆ¿Åœ¸›¸ú ˆÅ¸ œ¸»] ¸ú ¤¸¸]¸¸£ Ÿ¸½,¿ ¬¸ž¸ú ¬¨¸³Åœ¸¸½¿ Ÿ¸½¿ ˆºÅ¥¸ ¢›¸¨¸½©¸ (¢›¸¢š¸ ‡¨¸¿ Š¸¾£ aggregate exposure (both fund and non-fund
¢›¸¢š¸ ‚¸š¸¸¢£÷¸) ˆ½Å ‚¿÷¸Š¸Ä÷¸ ¢›¸Ÿ›¸¸¿¢ˆÅ÷¸ ¬¸¢ŸŸ¸¢¥¸÷¸ í¸½Š¿ ¸½- based) of Housing Finance Company to capital
markets in all forms shall include the following:
i ƒ¢Æ¨¸’ú ©¸½¡¸£, œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸, œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½¿\¸£ ‡¨¸¿ i) direct investment in equity shares, convertible
ƒ¢Æ¨¸’ú-‚¢ž¸Ÿ¸º‰¸ Ÿ¡¸»\¸º‚¥¸ œ¸¿€” ˆÅú ƒˆÅ¸ƒÄ ÷¸˜¸¸ ¨¸í ¬¸¿ŠÏí ]¸¸½ bonds, convertible debentures and units of equity-
oriented mutual funds the corpus of which is not
œ¸»µ¸Ä÷¸À „Ô¸Ÿ¸ †µ¸ Ÿ¸½¿ ¢›¸¨¸½¢©¸÷¸ ›¸ í¸½¿, ‚¸÷¸½ íÿ A exclusively invested in corporate debt;
ii) advances against shares/bonds/debentures or
ii. ©¸½¡¸£/¤¸¿š¸ œ¸°¸/¢”¨¸½¿\¸£ ¡¸¸ ‚›¡¸ œÏ¢÷¸ž¸»¢÷¸¡¸¸½¿ ˆ½Å ¢‰¸¥¸¸œ¸€ ‚¢ŠÏŸ¸ other securities or on clean basis to individuals
¡¸¸ ¬¨¸\Ž ‚¸š¸¸£ œ¸£ ¨¸¾¡¸¢Æ÷¸ˆÅ ׸£¸ ©¸½¡¸£ Ÿ¸½¿ ¢›¸¨¸½©¸ ˆ½Å ¢¥¸‡ for investment in shares (including Initial Public
Offers/Employees Stock Options), convertible
(œÏ¸£¿¢ž¸ˆÅ ¬¸¸¨¸Ä]¸¢›¸ˆÅ œÏ¬÷¸¸¨¸/¢›¸¡¸¸½Æ÷¸¸¿ ¬’¸¿ˆÅ ¢¨¸ˆÅ¥œ¸ ¬¸¢í÷¸),
bonds, convertible debentures, and units of
œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸, œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½¿\¸£ ÷¸˜¸¸ ƒ¢Æ¨¸’ú œÏ¸½™Ãž¸»÷¸ equity-oriented mutual funds;
Ÿ¡¸»\¸º‚¥¸ œ¸¿€” ‚¸¢™ A iii) advances for any other purposes where shares
or convertible bonds or convertible debentures
or units of equity oriented mutual funds are
iii. ©¸½¡¸£¸½¿ ˆÅú ¬¸Ÿ¸¸›¸¸¿÷¸£ œÏ¢÷¸ž¸»¢÷¸ ‚˜¸¨¸¸ œ¸£ú¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸ ‚˜¸¨¸¸
taken as primary security;
œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½¿\¸£ ‚˜¸¨¸¸ ƒ¢Æ¨¸’ú œÏ¸½™Ãž¸»÷¸ Ÿ¡¸»\¸º‚¥¸ œ¸¿€” ˆÅú iv) advances for any other purposes to the extent
ƒˆÅ¸ƒ¡¸¸½¿ ‚¸¢™ ˆ½Å ׸£¸ ¨¡¸¸œ¸ˆÅ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£µ¸ ˆ½Å „™Ã½™©¡¸ ¢ˆÅ¬¸ú secured by the collateral security of shares or
convertible bonds or convertible debentures or
œÏˆÅ¸£ ˆ½Å ‚¢ŠÏŸ¸¸½¿ ˆ½Å ‚¢÷¸¢£Æ÷¸ œÏ¸˜¸¢Ÿ¸ˆÅ œÏ¢÷¸ž¸»¢÷¸ í¸½ ]¸í¸¿ ©¸½¡¸£ units of equity oriented mutual funds, i.e. where
œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸, œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½¿\¸£/ƒ¢Æ¨¸’ú œÏ¸½™Ãž¸»÷¸ the primary security other than
shares/convertible bonds/convertible
Ÿ¡¸»\¸º‚¥¸ œ¸¿€” ˆÅú ƒˆÅ¸ƒ¡¸¸Â œ¸»£ú ÷¸£í ¬¸½ ‚¢ŠÏŸ¸ ˆÅ¸½ ‚¸¨¸¼î¸ ›¸
debentures/units of equity oriented mutual
ˆÅ£÷¸ú í¸½A funds does not fully cover the advances;

61
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

iv. ¬’¸ÁˆÅ ™¥¸¸¥¸¸½¿ ‡¨¸¿ ¤¸¸]¸¸£ ¢›¸Ÿ¸¸Ä÷¸¸‚¸½¿ ˆ½Å ›¸¸Ÿ¸ œ¸£ Š¸¸£¿’ú ]¸¸£ú v) secured and unsecured advances to
stockbrokers and guarantees issued on behalf of
ˆÅ£›¸¸ ÷¸˜¸¸ ¬’¸ÁˆÅ ™¥¸¸¥¸¸½¿ í½÷¸º ¬¸º£¢®¸÷¸ ‡¨¸¿ ‚¬¸º£¢®¸÷¸ ‚¢ŠÏŸ¸ A stockbrokers and market makers;

v. ¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸½ ¤¸[õ¸›¸½ ˆÅú œÏ÷¡¸¸©¸¸ Ÿ¸½¿ ›¸ƒÄ ˆ¿Åœ¸¢›¸¡¸¸½¿ ƒ¢Æ¨¸’ú ž¸¸Š¸ú™¸£ú vi) loans sanctioned to corporates against the
security of shares / bonds/ debentures or other
׸£¸ œÏ¨¸÷¸ÄˆÅ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸‚¸½¿ ˆÅú œ¸»¢÷¸Ä ˆ½Å ¢¥¸‡ ©¸½¡¸£¸½¿/¤¸¿š¸
securities or on clean basis for meeting
œ¸°¸¸½¿/¢”¨¸½¿\¸£¸½¿ ¡¸¸ ‚›¡¸ œÏ¢÷¸ž¸»¢÷¸¡¸¸½¿ ‚˜¸¨¸¸ ¢›¸¤¸¸Äš¸ (¬œ¸«’) ‚¸š¸¸£ promoter's contribution to the equity of new
œ¸£ „Ô¸¢Ÿ¸¡¸¸½¿ ˆÅ¸½ †µ¸¸½¿ ˆÅú ¬¸¿¬¨¸úˆ¼Å¢÷¸ ˆÅ£›¸¸A companies in anticipation of raising resources;

vii) bridge loans to companies against expected

vi. ‚œ¸½¢®¸÷¸ ƒ¢Æ¨¸’ú œÏ¨¸¸í/¢›¸Š¸ÄŸ¸ ˆ½Å ¬¸¸œ¸½®¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ¬¸½÷¸º equity flows/issues;
†µ¸ ™½›¸¸A
viii) underwriting commitments taken up by the HFCs
vii. ©¸½¡¸£¸½¿ ¡¸¸ œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸ ¡¸¸ œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½¿\¸£ ‚˜¸¨¸¸ in respect of primary issue of shares or
convertible bonds or convertible debentures or
ƒ¢Æ¨¸’ú œÏ¸½™Ãž¸»÷¸ Ÿ¡¸»\¸º‚¥¸ œ¸¿€” ˆ½Å œÏ¸˜¸¢Ÿ¸ˆÅ ¢›¸Š¸ÄŸ¸ ˆ½Å ¬¸¿™ž¸Ä Ÿ¸½¿ units of equity oriented mutual funds;
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ œÏ¢÷¸¤¸Ö÷¸¸‚¸½¿ ˆÅú ‚¨¸í½¥¸›¸¸ ˆÅ£›¸¸A
ix) financing to stockbrokers for margin trading;
viii. Ÿ¸¸¢]¸Ä›¸ ]¸Ÿ¸¸ ¤¸¸]¸¸£ í½÷¸º ¬’¸ÁˆÅ ™¥¸¸¥¸¸½¿ ˆÅ¸½ ¢¨¸î¸ œÏ™¸›¸ ˆÅ£›¸¸A and

x) all exposures to Venture Capital Funds (both

ix. „Ô¸Ÿ¸ -œ¸»Â]¸ú ¢›¸¢š¸ (¨¸ú ¬¸ú ‡œ¸€) í½÷¸º (œ¸¿]¸úˆ¼Å÷¸ ‡¨¸¿ Š¸¾£ œ¸¿]¸úˆ¼Å÷¸ registered and unregistered). These will be
™¸½›¸¸½¿) ¬¸ž¸ú œÏˆÅ¸£ ˆ½Å ‚¢ž¸Ÿ¸º‰¸úˆÅ£µ¸ (¢›¸¨¸½©¸) ƒ›¸ ¬¸ž¸ú ˆÅ¸½ deemed to be on par with equity and hence will
be reckoned for compliance with the capital
ƒ¢Æ¨¸’ú ˆ½Å ¬¸Ÿ¸÷¸º¥¡¸ ¬¸Ÿ¸±¸¸ ]¸¸‡Š¸¸ ‚¸¾£ ƒ›í½¿ œ¸»»Â]¸ú ¤¸¸]¸¸£ ¢›¸¨¸½©¸
market exposure ceilings (both direct and
¬¸úŸ¸¸ (œÏ÷¡¸®¸ ‡¨¸¿ ‚œÏ÷¡¸®¸ ™¸½›¸¸½¿) ˆ½Å ¬¸¸˜¸ ¬¨¸úˆ¼Å¢÷¸ ˆ½Å ¢¥¸‡ indirect).
¬¸¿Š¸¢“÷¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸A
(c) Items excluded from Capital Market
Exposure
Š¸) œ¸»Â]¸ú ¤¸¸]¸¸£ ‚¢ž¸Ÿ¸º‰¸úˆÅ£µ¸ (¢›¸¨¸½©¸) ¬¸½ Ÿ¸ºÆ÷¸ Ÿ¸™½¿À-
The following items shall be excluded from the
¢›¸¨¸¥¸ ¬¸¿œ¸¢î¸ ˆÅ¸ 40 œÏ¢÷¸©¸÷¸ ˆºÅ¥¸ ¢›¸¨¸½©¸ ¬¸úŸ¸¸ ÷¸˜¸¸ œÏ÷¡¸®¸ aggregate exposure ceiling of 40 per cent of net-
¢›¸¨¸½©¸ Ÿ¸½¿ ¢›¸¨¸¥¸ ¬¸¿œ¸¢î¸ ˆÅú 20% ˆºÅ¥¸ ¬¸úŸ¸¸ Ÿ¸½¿ (]¸¸½ ž¸ú „œ¸¡¸¸½]¡¸ worth and direct investment exposure ceiling of
20 per cent of net-worth (wherever applicable):
í¸½) ¢›¸Ÿ›¸ Ÿ¸™½¿ ©¸¸¢Ÿ¸¥¸ ›¸íì í¸½¿Š¸ú À-
i) Investment of a housing finance company in it's
i. ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ׸£¸ ‚œ¸›¸ú ¬¸í¸¡¸ˆÅ ˆ¿Åœ¸›¸ú, ¬¸¿¡¸ºÆ÷¸ „Ô¸Ÿ¸ own subsidiaries, joint ventures, and
Ÿ¸½¿ ¢›¸¨¸½©¸ ÷¸˜¸¸ Š¸¾£ ¬¸»\¸ú¤¸Ö ©¸½¡¸£¸½¿, ¨¸ œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½\¸£¸½¿, investments in unlisted shares and convertible,
œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸¸½¿ Ÿ¸½¿ ¢›¸¨¸½©¸ ]¸¸½ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ ¬¸¿ˆÅ’ ˆÅ¸¥¸ú›¸ debentures, convertible bonds issued by
¢¨¸î¸ú¡¸ ¤¸¸í¡¸¬¸¿£\¸›¸¸ ˆ½Å Š¸“›¸ í½÷¸º ]¸¸£ú ¢ˆÅ‡ Š¸‡ í¸½¿ ÷¸˜¸¸ ‚›¡¸ i n s t i t u t i o n s fo r m i n g c r u c i a l f i n a n c i a l
‚¢‰¸¥¸ ž¸¸£÷¸ú¡¸ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸ ]¸¾¬¸½ ¢ˆÅ ‚¸Š¸½ ¨¸¢µ¸Ä÷¸ í¾ ¬¸»\¸ú- infrastructure and other All India Financial
¤¸Ö÷¸¸ ˆ½Å œ¸©\¸¸÷¸, Ÿ¸»¥¸ ¢›¸¨¸½©¸ ¬¸½ ‚¢š¸ˆÅ ˆÅ¸ ¢›¸¨¸½©¸ („™¸í£µ¸¸˜¸Ä- Institutions as detailed below. After listing, the
¬¸»\¸ú¤¸Ö÷¸¸ ¬¸½ œ¸í¥¸½) œ¸»Â]¸ú ¤¸¸]¸¸£ ¢›¸¨¸½©¸ Ÿ¸½¿ ¢í¬¬¸¸ í¸½Š¸¸A exposures in excess of the original investment
(i.e. prior to listing) shall form part of the total
1. ›¸½©¸›¸¥¸ ¢¬¸Æ¡¸¸½£’ú]¸ ¢”œ¸¸½¢]¸’£ú ¢¥¸. (‡›¸ ‡¬¸ ”ú ‡¥¸) Capital Market Exposure.
2. ¬¸½¿’兩 ¢”œ¸¸½¢]¸’£ú ¬¸¢¨¸Ä¬¸½]¸ (ƒ¿¢”¡¸¸) ¢¥¸. (¬¸ú”ú ‡¬¸ ‡¥¸) 1. National Securities Depository Ltd. (NSDL)
3. ›¸½ © ¸›¸¥¸ ¢¬¸Æ¡¸¸½ ¢ £’ú]¸ ¢ˆÅ¥¸¡¸ë£Š¸ ˆÅ¸œ¸¸½ Ä £ ½ © ¸›¸ ¢¥¸. 2. Central Depository Services (India) Ltd. (CDSL)
(‡›¸ ‡¬¸ ¬¸ú¬¸ú ‡¥¸) 3. National Securities Clearing Corporation Ltd.
(NSCCL)

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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

4. ›¸½©¸›¸¥¸ ¬’¸ÁˆÅ ƒÆ¬¸\¸½¿]¸ (‡›¸ ‡¬¸ ƒÄ) 4. National Stock Exchange (NSE)

5. ¢ˆÅ¥¸¡¸ë£Š¸ ˆÅ¸œ¸¸½Ä£½©¸›¸ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ ¢¥¸. (¬¸ú ¬¸ú ‚¸ƒÄ ‡¥¸) 5. Clearing Corporation of India Ltd., (CCIL)
6. Credit Information Bureau of India Ltd. (CIBIL)
6. ÇŽ¢”’ ƒ›œ¸€¸½£Ÿ¸½©¸›¸ ¤¡¸»£¸½ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ ¢¥¸. (¬¸ú ‚¸ƒÄ ¤¸ú ‚¸ƒÄ ‡¥¸)
7. Multi Commodity Exchange Ltd. (MCX)
7. Ÿ¸¥’ú ˆÅ¸½Ÿ¸¸½¢”’ú ƒÆ¬¸\¸½¿]¸ ¢¥¸. (‡Ÿ¸ ¬¸ú ‡Æ¬¸)
8. National Commodity and Derivatives Exchange
8. ›¸½©¸›¸¥¸ˆÅ¸½Ÿ¸¸½¢”’ú‡¿” ”½¢£¨¸½¢’¥¬¸ƒÆ¬¸\¸½]¿ ¸¢¥¸.(‡›¸¬¸ú”úƒÄ ‡Æ¬¸) Ltd. (NCDEX)
9. ›¸½©¸›¸¥¸ Ÿ¸¥’ú ˆÅ¸½Ÿ¸¸½¢”’ú ƒÆ¬¸\¸½¿]¸ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ ¢¥¸. (‡›¸ ‡Ÿ¸ ¬¸ú 9. National Multi-Commodity Exchange of India
ƒÄ ‚¸ƒÄ ‡¥¸) Ltd. (NMCEIL)
10. ›¸½©¸›¸¥¸ ˆÅ¸½¥¸¾’¿£¥¸ Ÿ¸¾›¸½]¸Ÿ¸½¿’ ¬¸¢¨¸Ä¬¸½]¸ ¢¥¸. (‡›¸ ¬¸ú ‡Ÿ¸ ‡¬¸ ‡¥¸) 10. National Collateral Management Services Ltd.
(NCMSL)

‚¢‰¸¥¸ ž¸¸£÷¸ú¡¸ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸ All India Financial Institutions

1. Industrial Finance Corporation of India,
1. ƒ¿” ¢¬’¥¸ œ¸€¸ƒ›¸½¿¬¸ ˆÅ¸œ¸¸½Ä£½©¸›¸ ‚¸œ¸€ ƒ¿¢”¡¸¸ ¢¥¸.
Ltd. (IFCI)
(‚¸ƒÄ ‡œ¸€ ¬¸ú ‚¸ƒÄ)
2. Tourism Finance Corporation of India Ltd. (TFCI)
2. ’»¢£]Ÿ¸ œ¸€¸ƒ›¸½¿¬¸ ˆÅ¸œ¸¸½Ä£½©¸›¸ ‚¸œ¸€ ƒ¿¢”¡¸¸ ¢¥¸. (’ú ‡œ¸€ ¬¸ú ‚¸ƒÄ)
3. Risk Capital & Technology Finance Corporation
3. ¢£¬ˆÅ ˆ¾Å¢œ¸’¥¸ ‡¿” ’½Æ›¸¸½¥¸¸½]¸ú œ¸€¸ƒ›¸½¿¬¸ ˆÅ¸œ¸¸½Ä£½©¸›¸ ¢¥¸. Ltd. (RCTC)
(‚¸£ ¬¸ú ’ú ¬¸ú) 4. Technology Development & Information Co. of
4. ’½Æ›¸¸½¥¸¸½]¸ú ”½¨¸¥¸œ¸Ÿ¸½¿’ ‡¿” ƒ›œ¸€¸½ÄŸ¸½¬¸›¸ ˆÅ¸ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ ¢¥¸. India Ltd. (TDICI)
(’ú ƒú ‚¸ƒÄ ¬¸ú ‚¸ƒÄ) 5. National Housing Bank (NHB)
5. ›¸½©¸›¸¥¸ í¸„¢¬¸¿Š¸ ¤¸ÿˆÅ (‡›¸‡\¸¤¸ú) 6. Small Industries Bank of India (SIDBI)
6. ¬Ÿ¸¸¥¸ ƒ¿”¬’ïú]¸ ¤¸ÿˆÅ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ (‡¬¸ ‚¸ƒÄ ”ú ¤¸ú ‚¸ƒÄ) 7. National Bank for Agriculture & Rural
Development (NABARD)
7. ›¸½©¸›¸¥¸ ¤¸ÿˆÅ œ¸€¸£ ‡ŠÏúˆÅ¥\¸£ ‡¿” ³Å£¥¸ ”½¨¸¥¸œ¸Ÿ¸½¿’ (›¸¸¤¸¸”Ä)
8. Export Import Bank of India (EXIM Bank)
8. ƒÆ¬¸œ¸¸½’Ä ƒ¿œ¸¸½’Ä ¤¸ÿˆÅ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ (ƒ¢Æ¬¸Ÿ¸ ¤¸ÿˆÅ)
9. Industrial Investment Bank of India (IIBI)
9. ƒ¿”¢¬’¥¸ ƒ›¨¸½¬’Ÿ¸½¿’ ¤¸ÿˆÅ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ (‚¸ƒÄ ‚¸ƒÄ ¤¸ú ‚¸ƒÄ)
10. Life Insurance Corporation of India (LIC)
10. ¥¸¸ƒœ¸€ ƒ¿©¡¸¸½£½¿¬¸ ˆÅ¸Áœ¸¸½Ä£½©¸›¸ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ (‡¥¸‚¸ƒÄ¬¸ú)
11. General Insurance Corporation of India (GIC)
11. ]¸›¸£¥¸ ƒ¿©¡¸¸½£½¿¬¸ ˆÅ¸Áœ¸¸½Ä£½©¸›¸ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ (]¸ú ‚¸ƒÄ ¬¸ú)
i) Tier I and Tier II debt instruments issued by
i. ¢ˆÅ¬¸ú ‚›¡¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ¢›¸Š¸Ä¢Ÿ¸÷¸ ª½µ¸ú I ‡¨¸¿ ª½µ¸ú II œÏœ¸°¸ other housing finance companies;
ii. ¢ˆÅ›íì ‚›¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ]¸Ÿ¸¸-œÏŸ¸¸µ¸ œ¸°¸¸½¿ ii) Investment in Certificates of Deposit (CDs) of
(¬¸ú ”ú]¸) Ÿ¸½¿ ¢›¸¨¸½©¸ other housing finance companies;
iii. ‚¢š¸Ÿ¸¸›¸ ©¸½¡¸£ iii) Preference Shares;
iv. ‚œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½¿\¸£ ‡¨¸¿ ‚œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸ iv) Non-convertible debentures and non-convertible
bonds;
v. „›¸ ¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å Ÿ¡¸»\¸º‚¥¸ œ¸¿€”¸½¿ ˆÅú ƒˆÅ¸ƒ¡¸¸¿, ]¸í¸Â ¬¸¿ŠÏí ¢›¸¢š¸
v) Units of Mutual Funds under schemes where the
œ¸»µ¸Ä÷¸À †µ¸ œÏœ¸°¸¸½¿ Ÿ¸½¿ ¢›¸¨¸½¢©¸÷¸ ˆÅú Š¸ƒÄ í¸½ corpus is invested exclusively in debt
vi. ‡ˆÅ ˆ¿Åœ¸›¸ú †µ¸ œ¸º›¸Š¸Ä“›¸ (¬¸ú ”ú ‚¸£) œÏ¢ÇÅ¡¸¸ ˆ½Å ‚¿÷¸Š¸Ä÷¸ instruments;
†µ¸/¤¸ˆÅ¸¡¸¸ ¨¡¸¸]¸ ˆ½Å œ¸¢£¨¸÷¸Ä›¸ ˆ½Å œ¸¢£µ¸¸Ÿ¸ ¬¨¸³Åœ¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ vi) Shares acquired by Housing Finance Companies
ˆ¿Åœ¸›¸ú ׸£¸ ©¸½¡¸£¸½¿ ˆÅ¸½ œÏ¸œ÷¸ ˆÅ£›¸¸ as a result of conversion of debt/overdue interest
into equity under a Corporate Debt Restructuring
(CDR) mechanism.

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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

(‹¸) ¢›¸¨¸½©¸ ˆÅú ¬¸¿Š¸µ¸›¸¸ (d) Computation of exposure

œ¸»Â]¸ú ¤¸¸]¸¸£, †µ¸/‚¢ŠÏŸ¸ ¬¸¿¬¨¸úˆ¼Å¢÷¸ ‡¨¸¿ œ¸»Â]¸ú ¤¸¸]¸¸£ ¬¸¿\¸¸¥¸›¸ For computing the exposure to the capital
markets, loans/advances sanctioned and
í½÷¸º ]¸¸£ú ¢ˆÅ‡ Š¸‡ Š¸¸£¿’ú Ÿ¸½¿ ¢›¸¨¸½©¸ ˆÅú Š¸µ¸›¸¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ guarantees issued for capital market operations
¬¸¿¬¨¸úˆ¼Å¢÷¸ ¬¸úŸ¸¸ ¡¸¸ ¤¸ˆÅ¸‡ ˆ½Å ¬¸¿™ž¸Ä ˆ½Å ¬¸¸˜¸, ]¸¸½ ž¸ú ‚¢š¸ˆÅ í¸½, would be reckoned with reference to sanctioned
Š¸µ¸›¸¸ ˆÅú ]¸¸‡Š¸úA ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú limits or outstanding, whichever is higher.
Further, direct investment of a housing finance
׸£¸ ©¸½¡¸£¸½¿ œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¤¸¿š¸ œ¸°¸¸½¿, œ¸¢£¨¸÷¸Ä›¸ú¡¸ ¢”¨¸½¿\¸£¸½¿ ‡¨¸¿
company in shares, convertible bonds,
ƒ¢Æ¨¸’ú ‚¢ž¸Ÿ¸º‰¸ Ÿ¡¸»\¸º‚¥¸ œ¸¿€”¸½¿ Ÿ¸½¿ ¢›¸¨¸½©¸ ˆÅ¸½ „›¸ˆ½Å ¥¸¸Š¸÷¸ Ÿ¸»¥¡¸ convertible debentures and units of equity
œ¸£ œ¸¢£ˆÅ¢¥¸÷¸ (¬¸¿Š¸¢µ¸÷¸) ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸A oriented mutual funds shall be calculated at their
cost price.

™¥¸¸¥¸¸½¿ ˆÅú ¢›¸¡¸º¢Æ÷¸

ENGAGEMENT OF BROKERS

¢›¸¨¸½©¸ ¥¸½›¸-™½›¸ ¬¸½ ¢›¸œ¸’›¸½ í½÷¸º ™¥¸¸¥¸¸½¿ ˆÅú ¢›¸¡¸º¢Æ÷¸ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ¢¨¸î¸
For engagement of brokers to deal in investment
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ¤¸¸÷¸¸½¿ œ¸£ š¡¸¸›¸ ™½›¸¸ \¸¸¢í‡A transactions, the housing finance companies
should observe the following:
(ˆÅ) ˆÅ¸½ƒÄ ž¸ú ¥¸½›¸-™½›¸ ™¥¸¸¥¸¸½¿ ˆ½Å ‰¸¸÷¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ›¸íì ˆÅú ]¸¸›¸ú (a) Transactions should not be put through the
brokers' accounts. The brokerage on the deal
\¸¸¢í‡ ¢ˆÅ¬¸ú ”ú¥¸ (lkSnk) œ¸£ ¤¸›¸›¸½ ¨¸¸¥¸ú ™¥¸¸¥¸ú (¡¸¢™ ”ú¥¸
payable to the broker, if any (if the deal was put
™¥¸¸¥¸ ˆÅú Ÿ¸™™ ¬¸½ íºƒÄ í¾) ˆ½Å ž¸ºŠ¸÷¸¸›¸ ˆÅ¸½ ›¸¸½’/‚›¸º¤¸¿š¸ œ¸°¸ ¡¸¸ through with the help of a broker), should be
¬¸Ÿ¸^¸¸¾÷¸¸ ±¸¸œ¸›¸ ˆ½Å ¬œ¸«’ ”¸¥¸ˆÅ£ „\\¸ œÏ¨¸¿š¸›¸ ¬¸½ ‚›¸ºŸ¸¸½™›¸ Ÿ¸¸¿Š¸÷¸½ clearly indicated on the notes/memorandum put
íº‡ ¥¸½›¸-™½›¸ ‡¨¸¿ ™¥¸¸¥¸ú ˆÅ¸ ž¸ºŠ¸÷¸¸›¸, ™¥¸¸¥¸ ‚›¸º¬¸¸£, ‚¥¸Š¸- up to the top management seeking approval for
putting through the transaction and separate
‚¥¸Š¸ ¬œ¸«’ ³Åœ¸ ¬¸½ ™©¸¸Ä¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A account of brokerage paid, broker-wise, should
(‰¸) ¡¸¢™ ˆÅ¸½ƒÄ ¬¸¸¾™¸ (”ú¥¸) ™¥¸¸¥¸ ˆÅú ¬¸í¸¡¸÷¸¸ ¬¸½ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ÷¸¸½ be maintained.
™¥¸¸¥¸ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ ˆÅ½¨¸¥¸ ™¸½ œ¸¸¢’Ä¡¸¸½¿ ˆÅ¸½ ‡ˆÅ ™»¬¸£½ ˆ½Å ¬¸¸˜¸ ]¸¸½”õ›¸½ (b) If a deal is put through with the help of a broker,
÷¸ˆÅ íú œÏ¢÷¸¤¸¿¢š¸÷¸ ˆÅ£ ™ú ]¸¸›¸ú \¸¸¢í‡A the role of the broker should be restricted to that
of bringing the two parties to the deal together.
(Š¸) ¬¸¸¾™½ ˆ½Å Ÿ¸¸½¥¸-ž¸¸¨¸ ˆ½Å ™¸¾£¸›¸, ™¥¸¸¥¸ ˆÅ¸½ ¬¸¸¾™½ í½÷¸º œÏ¢÷¸œ¸®¸ (¬¸¸Ÿ¸›¸½
(c) While negotiating the deal, the broker is not
¨¸¸¥¸ú œ¸¸’úÄ) ˆÅú œ¸í\¸¸›¸ ˆÅ¸½ ¢¨¸Š¸¸½¢œ¸÷¸ ˆÅ£›¸½ Ÿ¸½¿ ›¸íì ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ obliged to disclose the identity of the
]¸¸›¸¸ \¸¸¢í‡ ‚¸¾£ „¬¸ˆ½Å ‚›¸º¤¸¿š¸ ›¸¸½’ Ÿ¸½¿ ˆÅ¸„¿’£ œ¸¸’úÄ (œÏ¢÷¸œ¸®¸) counterparty to the deal. On conclusion of the
ˆÅ¸ ›¸¸Ÿ¸ ¬œ¸«’ ¬¸¿ˆ½Å¢÷¸÷¸ í¸½›¸¸ \¸¸¢í‡A deal, he should disclose the counterparty and his
contract note should clearly indicate the name of
(‹¸) ‚›¸º¤¸¿š¸ œ¸°¸ Ÿ¸½¿ œÏ¢÷¸œ¸®¸ (ˆÅ¸„¿’£œ¸¸’úÄ) ˆÅ¸ ›¸¸Ÿ¸ ¢¨¸Š¸¸½¢œ¸÷¸ ˆÅ£›¸½ ˆ½Å the counterparty.
‚¸š¸¸£ œ¸£ ¬¸¸¾™½ ˆÅ¸ ¬¸Ÿ¸¸¡¸¸½]¸›¸ ‚˜¸¸Ä÷¸Ã ¢›¸¢š¸ ¬¸Ÿ¸¸¡¸¸½]¸›¸ ‡¨¸¿ (d) On the basis of the contract note disclosing the
œÏ¢÷¸ž¸»¢÷¸ ˆÅú ¢”¥¸ú¨¸£ú (¬¸ºœ¸º™ÄŠ¸ú) œÏ÷¡¸®¸ ³Åœ¸ ¬¸½ ™¸½›¸¸½¿ œ¸®¸¸½¿ ˆ½Å ¤¸ú\¸ name of the counterparty, settlement of deals,
í¸½›¸ú \¸¸¢í‡ ‚¸¾£ ƒ¬¸ˆ½Å œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ ™¥¸¸¥¸ ˆÅú ˆÅ¸½ƒÄ ž¸ú ž¸»¢Ÿ¸ˆÅ¸ ›¸íì viz. both fund settlement and delivery of security
í¸½›¸ú \¸¸¢í‡A should be directly between the parties and the
broker should have no role to play in the process.
(”õ) ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ ‚œ¸›¸½ ¬¸¨¸¸½Ä\\¸ œÏ¨¸¿š¸›¸ ˆÅú ‚›¸ºŸ¸¢÷¸
(e) With the approval of their top managements,
(¬¨¸úˆ¼Å¢÷¸) ¬¸½, œÏ¸¢š¸ˆ¼Å÷¸ ™¥¸¸¥¸¸½¿ ˆÅú ‡ˆÅ ¬¸»\¸ú (œ¸¾›¸¥¸) ÷¸¾¡¸¸£ housing finance companies should prepare a
ˆÅ£›¸¸ \¸¸¢í‡, ¢]¸¬¸ˆÅú œÏ¢÷¸¨¸«¸Ä ¡¸¸ „¬¸¬¸½ ]¸¥™ú-]¸¥™ú, panel of approved authorized brokers which
‚œ¸½®¸¸›¸º¬¸¸£, ¬¸Ÿ¸ú®¸¸ ˆÅú ]¸¸›¸ú \¸¸¢í‡ ™¥¸¸¥¸¸½¿ ˆ½Å ¬¸»\¸ú ¢›¸Ÿ¸¸Äµ¸ ˆ½Å should be reviewed annually or more often if so
¢¥¸‡ ‡ˆÅ ¬œ¸«’ Ÿ¸¸›¸™¿” ÷¸¾¡¸¸£ ¢ˆÅ¡¸¸ ]¸¸›¸¸ \¸¸¢í‡ ¢]¸¬¸Ÿ¸½¿ „›¸ˆÅú warranted. Clear-cut criteria should be laid down
for empanelment of brokers, including
†µ¸ œ¸¸°¸÷¸¸ ÷¸˜¸¸ ¤¸¸]¸¸£ú Ž¢¨¸ ‚¸¢™ ˆÅ¸ ž¸ú š¡¸¸›¸ £‰¸¸ ]¸¸›¸¸

64
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
\¸¸¢í‡ A œÏ÷¡¸½ˆÅ ™¥¸¸¥¸ ‚›¸º¬¸¸£ ¬¸¸¾™¸½¿ ˆ½Å ¢¨¸¨¸£µ¸ ÷¸˜¸¸ „›¸Ÿ¸½¿ ™ú
Š¸ƒÄ ™¥¸¸¥¸ú ˆÅ¸ ¢¨¸¨¸£µ¸ ÷¸¾¡¸¸£ ¢ˆÅ¡¸¸ ]¸¸›¸¸ \¸¸¢í‡ A
(\¸) ˆ½Å¨¸¥¸ ‡ˆÅ ¡¸¸ ˆºÅŽ½ˆÅ \¸º¢›¸¿™¸ ™¥¸¸¥¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢¨¸«¸Ÿ¸ ‚›¸ºœ¸¸÷¸
Ÿ¸½¿ ¥¸½›¸-™½›¸ ›¸íì ˆÅú ]¸¸›¸ú \¸¸¢í‡ A ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½
\¸¸¢í‡ ¢ˆÅ œÏ÷¡¸½ˆÅ ¬¨¸úˆ¼Å÷¸ ™¥¸¸¥¸ ˆ½Å ¢¥¸‡ ˆºÅ¥¸ ‚›¸º¤¸¿š¸ ¬¸úŸ¸¸
¬¸º¢›¸©\¸÷¸ ˆÅ£½¿A ‡ˆÅ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆÅ¸½
‚œ¸›¸½ ˆºÅ¥¸ ¥¸½›¸-™½›¸ ˆÅú œ¸¸¿\¸ œÏ¢÷¸©¸÷¸ ˆÅú ¬¸úŸ¸¸ (‰¸£ú™ œ¸€£¸½‰÷¸
™¸½›¸¸½¿ ˆ½Å ¢¥¸‡) ÷¸¡¸ ˆÅ£›¸ú \¸¸¢í‡ ÷¸˜¸¸ œÏ÷¡¸½ˆÅ ¬¨¸úˆ¼Å÷¸ ™¥¸¸¥¸ ˆ½Å
¢¥¸‡ ˆºÅ¥¸ ¢Ÿ¸¥¸¸ˆÅ£ …œ¸£ú ‚›¸º¤¸¿š¸ ¬¸úŸ¸¸ ˆÅ¸½ š¡¸¸›¸ Ÿ¸½¿ £‰¸›¸¸
\¸¸¢í‡A ƒ¬¸ ¬¸úŸ¸¸ ˆ½Å ‚¿™£ ™¸½›¸¸½¿ íú ‚¸¨¸¼î¸ í¸½›¸½ \¸¸¢í‡ ]¸¸½ ‡ˆÅ
™¥¸¸¥¸ ˆ½Å ׸£¸ ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆ½Å ¢¥¸‡ ¨¡¸¨¸¬¸¸¡¸ ¥¸¸¡¸¸
/œÏ¬÷¸¸¢¨¸÷¸ ¢ˆÅ¡¸¸ ]¸¸‡A í¸¥¸¸¿¢ˆÅ, ¡¸¢™ ¢ˆÅ¬¸ú ˆÅ¸£µ¸¨¸©¸ ¢ˆÅ¬¸ú
™¥¸¸¥¸ ˆ½Å ¢¥¸‡ „¬¸ˆÅú ˆºÅ¥¸ …œ¸£ú ¬¸úŸ¸¸ ˆÅ¸½ œ¸¸£ ˆÅ£›¸¸ ‚¢›¸¨¸¸¡¸Ä í¸½
÷¸¸½ ƒ¬¸ˆ½Å ¢¥¸‡ ¢¨¸¢©¸«’ ˆÅ¸£µ¸¸½¿ ˆÅ¸ ‚¢š¸ˆ¼Å÷¸ ‚¢š¸ˆÅ¸£ú ׸£¸
¢¥¸¢‰¸÷¸ ³Åœ¸ Ÿ¸½¿ ‚¢ž¸¢¥¸¢‰¸÷¸ ˆÅ£÷¸½ íº‡ ¬¸¸¾™¸ ¢ˆÅ¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A
ƒ¬¸ ‚¢÷¸¢£Æ÷¸ ÷¸÷œ¸©\¸¸÷¸, ƒ¬¸ ¤¸¸£½ Ÿ¸½¿ ¤¸¸½”Ä ˆÅ¸½ ¬¸¿¬¸»¢\¸÷¸ ¢ˆÅ¡¸¸
]¸¸›¸¸ \¸¸¢í‡A í¸¥¸¸¿¢ˆÅ 5 œÏ¢÷¸©¸÷¸ ˆÅú ¬¸úŸ¸¸ „¬¸ ‚¸¨¸¸¬¸ ¢¨¸î¸
ˆ¿Åœ¸›¸ú ˆ½Å ¢¥¸‡ ¥¸¸Š¸» ›¸íì í¸½Š¸ú-(i) ¢]¸¬¸ˆÅú ‡ˆÅ ¬¸¸¥¸ ˆ½Å ‚¿™£ ˆÅú
Š¸ƒÄ œ¸»£ú ¥¸½›¸-™½›¸ 20 ˆÅ£¸½”õ ³Å. ¬¸½ ‚¢š¸ˆÅ ˆÅú ›¸ í¸½ ‚¸¾£ (ii) ]¸¸½
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ œÏ¸˜¸¢Ÿ¸ˆÅ ”ú¥¸£¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¬¸¸¾™½
ˆÅ£÷¸ú í¸½A
(Ž) ]¸¸½ ¥¸½‰¸¸ œ¸£ú®¸ˆÅ £¸]¸ˆÅ¸½«¸ œÏ\¸¸¥¸›¸ ˆÅú œ¸£ú®¸¸ ˆÅ£÷¸½ íÿ „›í½¿
™¥¸¸¥¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢ˆÅ‡ Š¸‡ ¨¡¸¸œ¸¸£ ˆÅ¸½ ž¸ú ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸¸
\¸¸¢í‡ ‚¸¾£ ƒ¬¸ˆ½Å ¬¸¸˜¸ íú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆ½Å œÏŸ¸º‰¸
ˆÅ¸¡¸Äœ¸¸¥¸ˆÅ ‚¢š¸ˆÅ¸£ú ˆÅ¸½ ™ú ]¸¸›¸½ ¨¸¸¥¸ú Ÿ¸¸¢¬¸ˆÅ ¢£œ¸¸½’Ä Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸
ˆÅ£›¸¸ \¸¸¢í‡ ƒ¬¸ˆ½Å ¤¸¸¨¸]¸»™ ž¸ú, ¡¸¢™ ¢ˆÅ¬¸ú ‰¸¸¬¸ ™¥¸¸¥¸ ¡¸¸
™¥¸¸¥¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¬¸úŸ¸¸ ¬¸½ ‚¢š¸ˆÅ ¨¡¸¨¸¬¸¸¡¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ÷¸¸½
„¬¸½ ˆÅ¸£µ¸ ™½÷¸½ íº‡, œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ Ÿ¸¿”¥¸ ˆÅú ‚ר¸¸¢«¸ÄˆÅ œ¸£ú®¸¸ ˆ½Å
™¸¾£¸›¸ ©¸¢¸Ÿ¸¥¸ ¢ˆÅ¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A
(]¸) ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ œÏ¢÷¸ž¸»¢÷¸¡¸¸½¿ ˆÅ¸ ¥¸½›¸™½›¸ ˆ½Å¨¸¥¸ ›¸¾©¸›¸¥¸
¬’¸ÁˆÅ ‡Æ¬¸\¸½¿]¸/¤¸¸Ÿ¤¸½ ¬’¸ÁˆÅ ‡Æ¬¸\¸½¿]¸/‚¸½¨¸£ ¢™ ˆÅ¸„¿’£
‡Æ¬¸\¸½¿]¸ ‚¸Áœ¸€ ƒ¿¢”¡¸¸ ˆ½Å ™¥¸¸¥¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ˆÅ£ ¬¸ˆÅ÷¸ú íÿA
foosdiw.kZ ekunaMksa ds rgr cnykoksa dk lkjka'k
(>) ‚š¡¸¸¡¸ III Ÿ¸½¿ ¢¨¸¨¸½ˆÅœ¸»µ¸Ä Ÿ¸¸›¸™¿” ˆÅú š¸¸£¸ (III) ˆÅú 34 š¸¸£¸
(‰¸) ˆ½Å ‚›¸º\Ž½™ 28 ˆ½Å 34 ‚›¸º\Ž½™ (I) ˆ½Å ¬¸¸˜¸ ]¸¸½”õ¸ ]¸¸‡Š¸¸,
¡¸˜¸¸-’’¤¸©¸÷¸½Ä ¢ˆÅ ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ׸£¸ ¢ˆÅ¬¸ú ‚›¡¸ ‚¸¨¸¸¬¸
¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆ½Å ©¸½¡¸£¸½¿ Ÿ¸½¿ ¢›¸¨¸½©¸ ˆÅú ‚¢š¸ˆÅ÷¸Ÿ¸ ¬¸úŸ¸¸ 34 ‚›¸º\Ž½™
(i) Ÿ¸½¿ ¨¸¢µ¸Ä÷¸ ¬¸úŸ¸¸ ¬¸½ ¢›¸¨¸½©¸ú ˆ¿Åœ¸›¸ú ˆÅú ƒ¢Æ¨¸’ú œ¸»Â]¸ú ¬¸½ 10
œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ›¸íì í¸½Š¸ú’’
65
Report on Trend and Progress of Housing in India, 2008
verification of their creditworthiness, market
reputation, etc. A record of broker-wise details of
deals put through and brokerage paid, should be
maintained.
(f) A disproportionate part of the business should
not be transacted through only one or a few
brokers. Housing Finance Companies should fix
aggregate contract limits for each of the
approved brokers. A limit of 5 per cent of total
transactions (both purchase and sales) entered
into by a Housing Finance Company during a
year should be treated as the aggregate upper
contract limit for each of the approved brokers.
This limit should cover both, the business
initiated by a Housing Finance Company and the
business offered / brought to the housing
Finance Company by a broker. Housing Finance
Companies should ensure that the transactions
entered into through individual brokers during a
year normally do not exceed this limit. However,
if for any reason it becomes necessary to exceed
the aggregate limit for any broker, the specific
reasons therefore should be recorded, in writing,
by the authority empowered to put through the
deals. Further, the board should be informed of
this, post facto. However, the norm of 5 per cent
would not be applicable (i) to a Housing Finance
Company whose total transactions in a year do
not exceed Rs. 20 crore; and (ii) to Housing
Finance Companies' dealings through Primary
Dealers.
(g) The auditors who audit the treasury operations
should scrutinise the business done through
brokers also and include it in their monthly report
to the Chief Executive Officer of the Housing
Finance Company. Besides, the business put
through any individual broker or brokers in
excess of the limit, with the reasons therefore,
should be covered in the half-yearly review to the
Board of Directors.
(h) Housing Finance Companies may undertake
securities transactions through stock brokers
only on National Stock Exchange/Bombay Stock
Exchange/Over the Counter Exchange of India.”
In Chapter III - Prudential Norms, after
sub-clause (b) of clause (iii) of sub-
Paragraph (1) of Paragraph 28, the
following shall be added, namely;
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚š¡¸¸¡¸ III Ÿ¸½¿, ¢¨¸¨¸½ˆÅœ¸»µ¸Ä Ÿ¸¸›¸™¿”-‚›¸º\Ž½™ 28 ˆ½Å 34 ‚›¸ºº\Ž½™ "Provided that within the overall ceiling
(2) ˆÅ¸½ ¢›¸Ÿ›¸¸¿¢ˆÅ÷¸ ¬¸½ ¬˜¸¸›¸¸œ¸››¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸A prescribed under Sub- paragraph (1),
investment of a Housing Finance Company in the
]¸í¸Â ƒ›¸ œÏ¸¨¸š¸¸›¸¸½¿ ˆÅ¸ œÏ¸£¿ž¸µ¸ í¾- shares of another Housing Finance Company
shall not exceed ten per cent of the equity capital
(i) „œ¸ ‚›¸º\Ž½™ (1) Ÿ¸½¿ ¨¸¢µ¸Ä÷¸¸›¸º¬¸¸£ ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ׸£¸ of the investee company."
‚¢š¸ˆÅ÷¸Ÿ¸ ¬¸úŸ¸¸ ¬¸½ †µ¸ œÏ™¸›¸ ˆÅ£›¸¸, ‡½¬¸½ †µ¸ ˆ½Å ‚¢÷¸¢£Æ÷¸ ž¸¸Š¸
In chapter III, Prudential Norms, sub-
ˆÅ¸½ ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ׸£¸ ‚¨¸¢š¸ ˆ½Å ž¸ú÷¸£ ž¸ºŠ¸÷¸¸›¸ ¬¸Ÿ¸¡¸ paragraph (2) of Paragraph 28 shall be
¬¸»\¸ú ˆ½Å ‚›¸º¬¸¸£ ¬¸úŸ¸¸ ˆ½Å ž¸ú÷¸£ ¥¸¸¡¸¸ ]¸¸‡Š¸¸A substituted by the following;
Where at the commencement of these
(ii) ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ‚¸¾£ ˆ¿Åœ¸›¸ú ׸£¸ „œ¸ ‚›¸º\Ž½™ (1) ˆ½Å ‚¿÷¸Š¸Ä÷¸ provisions:
¨¸¢µ¸Ä÷¸ ‚¢š¸ˆÅ÷¸Ÿ¸ ¬¸úŸ¸¸ ¬¸½ ‚¢š¸ˆÅ ¢›¸¨¸½©¸ ˆÅ£›¸¸, ‡½¬¸½ ¢›¸¨¸½©¸ ˆÅú (i) the lending of a Housing Finance Company is in
‚¢š¸ˆÅ £¸¢©¸ ˆÅ¸½, ‡ˆÅ ‚¢š¸ˆÅ÷¸Ÿ¸ ‚¨¸¢š¸, ÷¸ú¥¸ ¬¸¸¥¸ ˆ½Å ž¸ú÷¸£ ¡¸¸ excess of the ceiling prescribed under sub-
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ ¤¸[ö¸ƒÄ Š¸ƒÄ ‡ˆÅ ÷¸¡¸ ‚¨¸¢š¸ ˆ½Å ž¸ú÷¸£ paragraph (1), such excess portion shall be
¢›¸œ¸’¸›¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸A brought down by the Housing Finance Company
as per the repayment schedule in due course;
‚š¡¸¸¡¸ III Ÿ¸½¿, ¢¨¸¨¸½ˆÅœ¸»µ¸Ä Ÿ¸¸›¸™¿” Ÿ¸½¿ ‚›¸º\Ž½™ 28 ˆ½Å ›¸¸½’ ˆ½Å ¤¸¸™ and
¡¸í ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ¬¸»\¸›¸¸ ]¸¸½”õú ]¸¸‡Š¸ú; ¡¸˜¸¸ À- (ii) the investment of a Housing Finance Company is
in excess of the ceiling prescribed under sub-
(i) ’’©¸½¡¸¬¸Ä’’ ˆÅ¸ ÷¸¸÷œ¸¡¸Ä í¸½Š¸¸, ¢¨¸¢¨¸š¸ œÏœ¸°¸¸½¿ Ÿ¸½¿ ¢›¸¨¸½©¸ ˆÅ£›¸¸ ]¸¾¬¸½ ¢ˆÅ paragraph (1), such excess portion shall be
ƒ¢Æ¨¸’ú ©¸½¡¸£, œ¸»Â]¸úŠ¸÷¸ œÏ¢÷¸«“¸ í½÷¸º ‚¢š¸Ÿ¸¸›¸ ©¸½¡¸£ œ¸¸°¸, disposed of within a period not exceeding three
‚š¸ú›¸¬˜¸ †µ¸ œÏœ¸°¸, ¬¸¿ˆÅ£ †µ¸ œ¸Â»]¸ú œœÏœ¸°¸,÷¸˜¸¸ œ¸»Â]¸ú ˆÅú œÏˆ¼Å¢÷¸ years or within such period as may be extended
ˆ½Å ³Åœ¸ Ÿ¸½¿ ‚›¸ºŸ¸¸½¢™÷¸ ‚›¡¸ œÏœ¸°¸ ‚¸¢™ ©¸¸¢Ÿ¸¥¸ í¸½Š¸½¿A by the National Housing Bank."
In Chapter III- Prudential Norms, after Note 3 in
(ii) ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ׸£¸ ‚œ¸›¸ú ‚š¸ú›¸¬˜¸ ˆ¿Åœ¸›¸ú Ÿ¸½¿ ¡¸¸ „¬¸ú Paragraph 28, the following Notes shall be
¬¸Ÿ¸»í ˆÅú ˆ¿Åœ¸¢›¸¡¸¸½¿ ÷¸˜¸¸ ‚›¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ Ÿ¸½¿ ¢›¸¨¸½©¸ added, namely :
‚œ¸›¸½ ¬¨¸¸¢Ÿ¸÷¨¸ ¢›¸¢š¸ ˆÅ¸ 10 œÏ¢÷¸©¸÷¸ í¸½Š¸¸ ]¸¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ (i) "Shares" shall mean and include investment in
ˆ¿Åœ¸¢›¸¡¸¸½¿ (‡›¸‡\¸¤¸ú), ¢›¸™½Ä©¸, 2001 ˆÅ½ ‚¿÷¸Š¸Ä÷¸ ÷¸º¥¸›¸ œ¸°¸ ˆ½Å Ÿ¸™ various instruments such as Equity Shares,
’’¨¡¸¸‰¡¸¸’ ˆ½Å ‚›¸º\Ž½™ 26 Ÿ¸½¿ ’’ž¸¸¢£÷¸ ]¸¸½¢‰¸Ÿ¸ ‚¢¬÷¸¡¸¸ ’’ ˆ½Å Ÿ¸™ Preference Shares eligible for capital status,
Subordinated Debt Instruments, Hybrid Debt
(2) (‹¸) Ÿ¸½¿ ¨¸¢µ¸Ä÷¸ 100 œÏ¢÷¸©¸÷¸ ]¸¸½¢‰¸Ÿ¸ ž¸¸£ ˆÅ¸½ ¨¸í›¸ ˆÅ£½Š¸¸A Capital Instruments and any other instruments
vkoklfor daifu;ksa ds ‚œ¸›¸½ ¬¨¸¸¢Ÿ¸÷¨¸ ˆÅú ¢›¸¢š¸ ˆ½Å 10 approved as in the nature of capital.
œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ˆ½Å ƒ¬¸ œÏˆÅ¸£ ˆ½Å ¢›¸¨¸½©¸ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ (ii) Investment of a Housing Finance Company in
‚¢š¸¢›¸¡¸Ÿ¸ 1987 ˆÅ¸½ š¸¸£¸ 29 ˆÅ ¬¸½ ¢›¸£¿÷¸£ ˆÅ¸’½ ]¸¸÷¸½ £í½¿Š¸½A the shares of its subsidiaries, companies in the
same group and other Housing Finance
(iii) ¢›¸™½Ä©¸ ¬¸¿. ‡›¸‡\¸¤¸ú/‡\¸ ‡œ¸€ ¬¸ú, ¢›¸™½Ä©¸ 23/¬¸ú ‡Ÿ¸ ”ú/2008 Companies, to the extent of ten per cent of its
¢™›¸¸¿¢ˆÅ÷¸, 24 ‚œÏ¾¥¸, 2008 owned fund, shall carry a risk weight of 100 per
24 ‚œÏ¾¥¸, 2008 ¬¸½ œÏž¸¸¨¸ú Ÿ¸½¿ ‚¸›¸½ ˆ½Å ¬¸¸˜¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ cent as prescribed at item (2) (d) of 'Weighted
Risk Assets- on balance sheet items under
(‡›¸‡\¸¤¸ú) ¢›¸™½Ä©¸, 2001 ˆ½Å ‚š¡¸¸¡¸ I ¨¸ III ˆ½Å ‚›¸º¬¸¸£
'Explanation' to Paragraph 26 of the Housing
¢›¸Ÿ›¸¸›¸º¬¸¸£ ¬¸¿©¸¸½š¸›¸ ¢ˆÅ‡ Š¸‡ íÿ; ¡¸˜¸¸ Finance Companies (NHB) Directions, 2001.
(ˆÅ) ‚š¡¸¸¡¸ 1 Ÿ¸½¿, ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ (‡›¸ ‡\¸ ¤¸ú) ¢›¸™½Ä©¸, 2001 Such investment in excess of ten per cent of its
ˆ½Å ‚›¸º\Ž½™ 2 ˆ½Å 34 ‚›¸º\Ž½™ (‡›¸) ˆ½Å ¤¸¸™ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ›¸¡¸¸ owned fund shall continue to be deducted from
the net owned fund of the Housing Finance
‚›¸º\Ž½™ ¬¸Ÿ¸¸Ÿ¸½¢¥¸÷¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸, ¡¸˜¸¸-
Company as prescribed at item.(I) of

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"›¸¨¸¸\¸¸£ú ¢\¸£©¸¸©¨¸÷¸ †µ¸ ˆÅ¸ Ÿ¸÷¸¥¸¤¸ í¾, ƒ¬¸ ¬¸¿™ž¸Ä Ÿ¸½¿ £¸«’ïú¡¸ 'Explanation' to Section 29A of the National
Housing Bank Act, 1987."
‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ ]¸¸£ú œ¸¢£œ¸°¸ Ÿ¸½¿ ¢›¸¡¸Ÿ¸ ‡¨¸¿ ©¸÷¸¸½Ä ˆ½Å ‚›¸º¬¸¸£ ]¸¸£ú
¬¸¿ˆÅ£ †µ¸" (iii) Direction No. NHB.HFC.DIR. 23/CMD/2008,
dated April 24, 2008

(‰¸) ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ (‡›¸ ‡\¸ ¤¸ú) ¢›¸™½Ä©¸, 2001 ˆ½Å ‚›¸º\Ž½™
With effect from April 24, 2008, in Chapter I and
26 ˆ½Å Ÿ¸™ ¬¸¿‰¡¸¸ 2 (”ú) ˆ½Å ’¨¡¸¸‰¡¸¸Ö ˆÅ ‚¿÷¸Š¸Ä÷¸ 2 (ƒÄ) ˆ½Å ³Åœ¸ III of the Housing Finance Companies (NHB)
Ÿ¸½¿ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ¬¸Ÿ¸¸Ÿ¸½¢¥¸÷¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸, ¡¸˜¸¸ À- Directions, 2001 have been amended in the
"‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ‚›¡¸ ‚¸.¢¨¸.ˆ¿Å/ ¤¸¾ˆÅ¸½¿/¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ following manner, namely:
Ÿ¸½½¿ ›¸¨¸¸\¸¸£ú ¢\¸£©¸¸©¨¸÷¸ †µ¸"
(a) In Chapter I, after sub-paragraph (m) of
Paragraph 2 of the Housing Finance Companies
4.1.24 ¢™©¸¸ ¢›¸™½Ä©¸ / œ¸¢£œ¸°¸ (NHB) Directions, 2001 the following new sub-
paragraph shall be inserted, namely;
(i) œÏ÷¡¸®¸ ¢¨¸ÇÅ¡¸ ‡]¸½¿’ (‚¢ž¸ˆÅ÷¸¸Ä) ˆ½Å ¢¥¸‡ ‚¸™©¸Ä ‚¸\¸¸£-¬¸¿¢í÷¸¸ “Innovative perpetual debt means hybrid debt
¼Mh ,l , ,l½ ™½¢‰¸‡ (‡›¸ ‡\¸ ¤¸ú ‡›¸”ú)/ ”ú ‚¸£ ‡¬¸/ œ¸ú issued in accordance with the terms and
conditions stipulated in the Circular issued by
‚¸½ ‡¥¸-›¸¿.-24/2008 ¢™›¸¸¿¢ˆÅ÷¸, 14 ]¸º¥¸¸ƒÄ 2008 National Housing Bank in this regard.”

£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ œÏ÷¡¸®¸ ¢¨¸ÇÅ¡¸ ‡]¸½¿’ ˆ½Å ¢¥¸‡ ‡ˆÅ ‚¸™©¸Ä
‚¸\¸¸£ ¬¸¿¢í÷¸¸ ˆÅ¸½ œ¸¢£\¸¸¢¥¸÷¸ ¢ˆÅ¡¸¸-™½‰¸½¿ (‡›¸ ‡\¸¤¸ú (‡›¸ ”ú)
”ú ‚¸£ ‡¬¸/œ¸ú ‚¸½‡¥¸-¬¸¿.-24/2008, ¢™›¸¸¿ˆÅ 14 ]¸º¥¸¸ƒÄ,
2008
œÏ÷¡¸®¸ ¢¨¸ÇÅ¡¸ ‡]¸½›’ /‚¢ž¸ˆÅ÷¸¸Ä‚¸½¿ ˆ½Å ¢¥¸‡ ‚¸™©¸Ä ‚¸š¸¸£
¬¸¿¢í÷¸¸ (”ú ‡¬¸ ‡ ‡¬¸), ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ „›¸ˆ½Å ‡]¸½¿’
ˆÅ¸½ œÏ÷¡¸®¸ ¢¨¸ÇÅ¡¸ ‡]¸½¿’ (‚¢ž¸ˆÅ÷¸¸Ä) ˆ½Å ³Åœ¸ Ÿ¸½¿ ˆÅ¸Ÿ¸ ‚œ¸›¸¸›¸½ ¢¥¸‡
‡ˆÅ ‚¸\¸¸£ ¬¸¿¢í÷¸¸ í¾
(b) In Chapter III, after item No. 2(d) of
'Explanations', to Paragraph 26 of the Housing
Finance Companies (NHB) Directions, 2001, the
following shall be inserted as 2 (e) ; namely,
“HFC's investments in innovative perpetual debt
of other HFCs/banks/financial institutions”
4.1.24 Guidelines/Circulars

¡¸í ¬¸¿¢í÷¸¸ „›¸ ¬¸ž¸ú ¥¸¸½Š¸¸½¿ œ¸£ ¥¸¸Š¸» í¸½÷¸ú í¾ ]¸¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ (i) MODEL CODE OF CONDUCT FOR DIRECT
SELLING AGENTS (DSAS)
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å †µ¸¸½¿ ¡¸¸ ‚›¡¸ ‚¸œ¸¸™¸½¿ ˆ½Å ¢¨¸œ¸µ¸›¸ ¡¸¸ ¬¸¿¢¨¸÷¸£µ¸ ˆ½Å
NHB has circulated the MODEL CODE OF
¬¸¿¥¸Š›¸ í¾ œÏ÷¡¸®¸ ¢¨¸ÇÅ¡¸ ‚¢ž¸ˆÅ÷¸¸Ä ÷¸˜¸¸ „¬¸ˆ½Å ˆÅŸ¸Ä\¸¸£ú /œÏ¢÷¸¢›¸¢š¸ CONDUCT FOR DIRECT SELLING AGENTS
(DSAS) vide NHB (ND)/DRS/POL-No-24/2008
¢›¸¢©\¸÷¸ ³Åœ¸ ¬¸½ ¢ˆÅ¬¸ú ž¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢ˆÅ¬¸ú
dated July 14, 2008
ž¸ú œÏˆÅ¸£ ˆ½Å œÏ÷¡¸®¸ ¢¨¸œ¸µ¸›¸ œÏ\¸¸¥¸›¸ ˆÅ¸½ í¸˜¸ Ÿ¸½¿ ¥¸½›¸½ ¬¸½ œ¸í¥¸½ ƒ¬¸
¬¸¿¢í÷¸¸ ˆ½Å œÏ¢÷¸ ¢›¸«“¸¨¸¸›¸ í¸½›¸½ ˆ½Å ¢¥¸‡ ¬¸íŸ¸÷¸ í¸½¿ ¢ˆÅ¬¸ú ž¸ú œÏ÷¡¸®¸ The Model Code of Conduct for Direct Selling
¢¨¸ÇÅ¡¸ ‚¢ž¸ˆÅ÷¸¸Ä ˆÅ¸ ˆÅŸ¸Ä\¸¸£ú/œÏ¢÷¸¢›¸¢š¸ ¡¸¢™ ƒ¬¸ ¬¸¿¢í÷¸¸ (ˆÅ¸½”) Agents (DSAs) is a code of conduct for adoption
by Housing Finance Companies (HFCs) in
ˆÅ¸ „¥¥¸¿‹¸›¸ ˆÅ£÷¸½ íº‡ œ¸¸¡¸¸ Š¸¡¸¸ ÷¸¸½ „¬¸½ ˆÅ¸¥¸ú ¬¸»\¸ú Ÿ¸½¿ ”¸¥¸¸ ]¸¸
respect of DSAs operating as their Agents. The
¬¸ˆÅ÷¸¸ í¾ ‚¸¾£ ‡½¬¸ú ˆÅú Š¸ƒÄ ˆÅ¸£Ä¨¸¸ƒÄ ˆÅ¸½ ¬¸Ÿ¸¡¸ -¬¸Ÿ¸¡¸ œ¸£ œÏ÷¡¸®¸ code is applicable to all persons involved in
¢¨¸ÇÅ¡¸ ‡]¸½¿’ ‚¸¢™ ˆ½Å ¤¸¸£½ Ÿ¸½¿ vkol foÙk ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ ¬¸Ÿ¸¡¸- marketing and distribution of any loan or other
financial product of HFCs. The DSA and its
¬¸Ÿ¸¡¸ œ¸£ ¢£œ¸¸½’Ä ˆÅ£÷¸½ £í›¸¸ \¸¸¢í‡
employees / representatives must agree to abide

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(ii) ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ˆ½Å ׸£¸ ¨¸¬¸»¥¸ú ‡]¸½¿’ œÏ¡¸ºÆ÷¸ ˆÅ£›¸½ ˆ½Å by this code prior to undertaking any direct
marketing operations on behalf of an HFC. Any
¢¥¸‡ ¢™©¸¸ ¢›¸™½Ä©¸ À- employee /representative of the DSA found to be
™½‰¸½¿ ›¸ú¢÷¸ œ¸¢£œ¸°¸ ¬¸¿. (‡›¸ ‡\¸ ¤¸ú(›¸¸¢™)/”ú ‚¸£ ‡¬¸/œ¸ú violating this code may be blacklisted and such
‚¸½ ‡¥¸-¬¸¿. 25/2008 ¢™›¸¸¿¢ˆÅ÷¸ 14 ]¸º¥¸¸ƒÄ, 2008 A action taken may be reported to the HFC from
time to time by the DSA etc.

£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ œÏ¡¸ºÆ÷¸ ¨¸¬¸»¥¸ú
(ii). GUIDELINES FOR RECOVERY AGENTS
‡]¸½¿’ ˆ½Å ¢¥¸‡ ¢™©¸¸ ¢›¸™½Ä©¸ œ¸¢£\¸¸¢¥¸÷¸ ¢ˆÅ‡ ™½‰¸½¿-›¸ú¢÷¸ œ¸¢£œ¸°¸ ¬¸¿. ENGAGED BY HOUSING FINANCE
(‡›¸ ‡\¸ ¤¸ú(›¸¢™)/”ú ‚¸£ ‡¬¸/œ¸ú ‚¸½ ‡¥¸-¬¸¿. 25/2008, COMPANIES

¢™›¸¸¿¢ˆÅ÷¸, 14 ]¸º¥¸¸ƒÄ, 2008 A - vide Policy circular No. (NHB(ND) / DRS/

POL-No-25 / 2008 dated July 14, 2008
NHB has circulated the GUIDELINES FOR
¢œ¸Ž¥¸½ ˆºÅŽ ¬¸Ÿ¸¡¸ ¬¸½ ¨¸¬¸»¥¸ú ‡]¸½¿’¸½a ׸£¸ ¬¸¨¸¸¢¥¸¡¸¸ ˆÅ¸¡¸ÄœÏµ¸¸¥¸ú RECOVERY AGENTS ENGAGED BY HOUSING
‚œ¸›¸¸›¸½ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ‚›¸½ˆÅ¸½¿ Š¸¥¸÷¸ ¢£œ¸¸½’Äì¸ ˆÅú ¤¸[õ÷¸ú ¬¸¿‰¡¸¸ ˆÅ¸½ FINANCE COMPANIES - vide Policy circular No.
NHB(ND)/DRS/POL-No-25/2008 dated July
™½‰¸÷¸½ íº‡, £¸.‚¸. ¤¸ÿˆÅ ›¸½ ¡¸í Ÿ¸í¬¸»¬¸ ¢ˆÅ¡¸¸ ¢ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸
14, 2008.
ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ¨¸¬¸»¥¸ú ‡]¸½¿’¸½¿ ˆ½Å „œ¸¡¸¸½Š¸ í½÷¸º ‚›¸ºœ¸¸¢¥¸÷¸ ˆÅú ]¸¸›¸½
In view of the rise in the number of adverse
¨¸¸¥¸ú ›¸ú¢÷¸¡¸¸½¿, ˆÅ¸¡¸ÄœÏµ¸¸¢¥¸¡¸¸½¿ ‡¨¸¿ œÏ¢ÇÅ¡¸¸‚¸½¿ ˆÅ¸½ ¬¸Ÿ¸ú¢®¸÷¸ ¢ˆÅ¡¸½ reports about questionable practices resorted to
]¸¸›¸½ ˆÅú ÷¸º£¿÷¸ ‚¸¨¸©¡¸ˆÅ÷¸¸ í¾A „¬¸ú ˆ½Å ‚›¸º¬¸¸£, £¸.‚¸. ¤¸ÿˆÅ ›¸½ by recovery agents in the recent past, it is felt
that there is an urgent need to review the policy,
¡¸í ¢›¸µ¸Ä¡¸ ¢¥¸¡¸¸ ¢ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ׸£¸ ‚¢š¸ŠÏíµ¸ ¢ˆÅ‡
practice and procedures being followed by the
S ¢÷¸ˆÅ ³Åœ¸ Ÿ¸½¿, „›¸ˆ½Å
]¸¸›¸½ ˆ½Å ¢¥¸‡ ¢™©¸¸ ¢›¸™½Ä©¸ ]¸¸£ú ˆÅ£½¿ ¬¸Ö¸¿ recovery agents of Housing Finance Companies
¨¸¬¸»¥¸ú ‡]¸½¿’¸½¿ ˆÅú ˆÅ¸¡¸Ä œÏµ¸¸¥¸ú ˆ½Å ¢¥¸‡, ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ íú (HFCs). Accordingly, NHB has decided to issue
the guidelines for adoption by all HFCs. HFCs, as
¢]¸ŸŸ¸½™¸£ í¾ ‚÷¸¾¨¸, „›í½¿ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸¸ \¸¸¢í‡ ¢ˆÅ „›¸ˆ½Å ‚œ¸›¸½ principals, are responsible for the actions of their
¤¸ˆÅ¸¡¸¸½¿ ˆÅú ¨¸¬¸»¥¸ú ˆ½Å ¢¥¸‡ œÏ¡¸ºÆ÷¸ ‡]¸½¿’, ¬¸‰÷¸ú ˆ½Å ¬¸¸˜¸ ƒ›¸ ¢™©¸¸ agents. Hence, they should ensure that their
¢›¸™½Ä©¸¸½¿ ‡¨¸¿ ‚›¸º™½©¸¸½¿ ˆÅ¸ ‚›¸ºœ¸¸¥¸›¸ ˆÅ£½¿ ¢]¸¬¸›¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ agents engaged for recovery of their dues should
strictly adhere to these guidelines and
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¤¸ˆÅ¸¡¸¸½¿ ˆÅú ¨¸¬¸»¥¸ú œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ œÏ¡¸ºÆ÷¸ í¸½›¸½ œ¸£ „¢\¸÷¸ instructions, including the Fair Practices Code for
ˆÅ¸¡¸Ä œÏµ¸¸¥¸ú (¨¡¸¨¸í¸£) ¬¸¿¢í÷¸¸ ž¸ú ©¸¸¢Ÿ¸¥¸ í¾ A HFCs, while engaged in the process of recovery
of dues.

£¸.‚¸.¤¸ÿˆÅ ˆÅ¸ ‚›¡¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ œÏ¸¢š¸ˆÅ¸¢£¡¸¸½¿ ˆ½Å ¬¸¸˜¸ ¬¸Ÿ¸›¨¸¡¸ À

NHB's Co-ordination with other Regulatory
4.1.25 ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸, £¸.‚¸.¤¸ÿˆÅ ›¸½ ž¸¸£÷¸ú¡¸ ¢£]¸¨¸Ä ¤¸ÿˆÅ ׸£¸ Authorities
¢¨¸î¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ¸½¿ ˆÅú ¢¨¸¢ž¸››¸ £¸]¡¸ ¬÷¸£ú¡¸ ¬¸¢Ÿ¸¢÷¸ ˆÅú ¢¨¸¢ž¸››¸ 4.1.25 During the year 2007-08, NHB participated in
®¸½°¸ú¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸¸½¿ Ÿ¸½¿ ‚¸¡¸¸½¢]¸÷¸ ¤¸¾“ˆÅ¸½¿ Ÿ¸½¿ ž¸¸Š¸ ¢¥¸¡¸¸ ƒ›¸ ¤¸¾“ˆÅ¸½¿ ˆÅ¸ different State Level Co-ordination Committee
meetings of financial regulators convened by the
‚¸¡¸¸½]¸›¸ ¬¸¿¤¸¿¢š¸÷¸ ¢¨¸¢ž¸››¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ œÏ¸¢š¸ˆÅ¸¢£¡¸¸½¿ ˆ½Å ¤¸ú\¸
RBI at its various regional offices. These
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ Š¸¾£-‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú meetings are held with the objective of ensuring
ˆÅ¸¡¸ÄœÏµ¸¸¥¸ú ˆ½Å ¤¸ú\¸ ¬¸Ÿ¸›¨¸¡¸ lqfuf'pr ˆÅ£›¸½ ˆ½Å „Ó½©¡¸ ¬¸½ ¢ˆÅ¡¸¸ active co-ordination among the various
]¸¸÷¸¸ í¾, ¢]¸›¸Ÿ¸½¿ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ¢í÷¸ ˆ½Å ›¸ú¢÷¸Š¸÷¸ ‡¨¸¿ œ¸¢£\¸¸¥¸›¸¸÷Ÿ¸ˆÅ regulatory authorities concerned with the
functioning of the Housing Finance Companies
Ÿ¸ºÓ¸½¿ œ¸£ \¸\¸¸Ä ˆÅú ]¸¸÷¸ú í¾ A
and NBFCs, where policy as well as operational

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š¸¸½‰¸¸š¸”õú œÏ¤¸¿š¸›¸ œÏˆÅ¸½«“ À issues of public interest is addressed.

4.1.26 £¸.‚¸. ¤¸ÿˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿, ž¸¸£÷¸ú¡¸ ¢£]¸¨¸Ä ¤¸ÿˆÅ ‚¸¾£
ž¸¸£÷¸ú¡¸ ¤¸ÿ¢ˆ¿ÅŠ¸ ¬¸¿‹¸ ¬¸½ ‚¸¨¸¸¬¸ †µ¸¸½¿ Ÿ¸½¿ íº‡ š¸¸½‰¸¸š¸”õú ˆ½Å ¤¸¸£½ Ÿ¸½¿
¬¸»\¸›¸¸ ‡ˆÅ°¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ š¸¸½‰¸¸š¸”õú œÏ¤¸¿š¸›¸ ˆÅ¸½«“ ˆÅ¸ Š¸“›¸
¢ˆÅ¡¸¸ í¾ A £¸.‚¸. ¤¸ÿˆÅ ›¸½ š¸¸½‰¸½¤¸¸]¸ Š¸¼í †µ¸ ¥¸½›¸½ ¨¸¸¥¸½ †¢µ¸¡¸¸½¿ ˆÅ¸
¢¨¸¨¸£µ¸ ‚¸¾£ š¸¸½‰¸¸ ™½›¸½ ˆÅú ¢¨¸¢š¸ ‚¸¾£ ‹¸’›¸¸ ‹¸¢’÷¸ í¸½›¸½ ˆ½Å ˆÅ¸£µ¸¸½¿
ˆÅ¸½ ž¸¸£÷¸ú¡¸ ¢£]¸¨¸Ä ¤¸ÿˆÅ/ ž¸¸£÷¸ú¡¸ ¤¸ÿ¢ˆ¿ÅŠ¸ ¬¸¿‹¸ ˆ½Å ¬¸™¬¡¸ ¤¸ÿˆÅ¸½¿ ˆÅ¸½
œ¸¢£\¸¸¢¥¸÷¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾A ¡¸í ‚¸©¸¸ ˆÅú ]¸¸÷¸ú í¾ ¢ˆÅ £¸.‚¸.¤¸ÿˆÅ
’\¸½÷¸¸¨¸›¸ú ¬¸»\¸ú’ ¬¸½ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ]¸¸¿\¸ ˆÅ£›¸½ ‚¸¢™ Ÿ¸½¿
¬¸í¸¡¸÷¸¸ ¢Ÿ¸¥¸½Š¸ú, ƒ¬¸ˆÅ¸ Ÿ¸º‰¡¸ „Ó½©¡¸ ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ‹¸¸½‰¸¸š¸”õú
ˆÅú ‹¸’›¸¸‚¸½¿ ˆÅú œ¸º›¸£¸¨¸¼¢î¸ ˆÅ¸½ £¸½ˆÅ›¸¸ í¾A
Fraud Management Cell
4.1.26 NHB has set up a Fraud Management Cell to
collect information from HFCs, RBI and IBA
regarding frauds committed in housing loans.
NHB has begun circulating details of fraudulent
home loan borrowers along with the modus
operandi and causative factors involved on the
lines of similar information being shared by the
Reserve Bank of India/ Indian Banks Association
to member banks. It is expected that NHB's
Caution List would help in instituting checks and
balances among the various lending institutions,
the larger objective being to prevent recurrence
of frauds in the housing sector.

„œ¸ž¸¸½Æ÷¸¸ ¢©¸ˆÅ¸¡¸÷¸¸½¿ ˆÅ¸ ¢›¸¨¸¸£µ¸ À Addressing Consumer Grievances

4.1.27 £¸.‚¸. ¤¸ÿˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¢¨¸²Ö ]¸›¸÷¸¸ ¬¸½ œÏ¸œ÷¸ 4.1.27 NHB addresses complaints against HFCs
¢©¸ˆÅ¸¡¸÷¸¸½¿ œ¸£ ˆÅ¸£Ä¨¸¸ƒÄ ˆÅ£÷¸¸ í¾A ¬¸¸Ÿ¸¸›¡¸÷¸¡¸¸ ¢©¸ˆÅ¸¡¸÷¸½¿ ‚¸¨¸¸¬¸ received from individuals. The Complaints are
usually in respect of deposits accepted by the
¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ]¸Ÿ¸¸ ˆÅú Š¸ƒÄ £¸¢©¸¡¸¸½¿ ‚¸¾£ „›¸ˆ½Å ׸£¸ ¢™¡¸½ Š¸‡
HFCs and the loans extended by them.
†µ¸¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ í¸½÷¸ú íÿA
4.2 Scheduled Commercial Banks
4.2 ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ 4.2.1 The Scheduled Commercial Banks (SCBs) which
4.2.1 ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ ¢]¸›¸ˆÅ¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸ ˆÅ¸£¸½¤¸¸£ œ¸í¥¸½ were having smaller share of the housing finance
business earlier, now account for the major share
Ž¸½’¸ ˜¸¸, ¢ˆ¿Å÷¸º ‚¸]¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¤¸¸]¸¸£ Ÿ¸½¿ „›¸ˆÅú ¤¸”õú ¢í¬¬¸½™¸£ú of the housing finance market. Outstanding
í¾A ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆ½Å ¬¸ˆÅ¥¸ ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅú housing credit of the SCBs constituted about
Ÿ¸¸°¸¸ 31 Ÿ¸¸\¸Ä, 2007 ˆÅ¸½ 11.75 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ 31 Ÿ¸¸\¸Ä, 10.27 per cent of the gross bank credit as of 31st
March 2008 as compared to 11.75 per cent as at
2008 ˆÅ¸½ ¬¸ˆÅ¥¸ ¤¸ÿˆÅ †µ¸¸½¿ ˆÅú Ÿ¸¸°¸¸ ¥¸Š¸ž¸Š¸ 10.27 end March 2007.
œÏ¢÷¸©¸÷¸ ˜¸úA

‚¸¨¸¸¬¸ †µ¸ Ÿ¸½¿ œÏ¨¸¼¢î¸ - ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ Trend in Housing Loan: Scheduled Commercial
Banks

o"kZ 2008 gsrq ¤¸½¢¬¸ˆÅ (Ÿ¸»¥¸) ¬¸¸¿¢‰¡¸ˆÅú¡¸ ¢¨¸¨¸£µ¸ú ”¸’¸ ˆÅ¸ ¢¨¸©¥¸½«¸µ¸ The analysis of Basic Statistical Return data for
¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ™©¸¸Ä÷¸¸ í¾ À- the year 2008 indicates the following:

1. Š¸¼í †µ¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ (‚˜¸¸Ä÷¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ¬¸¿‰¡¸¸) 31.3.2007 ˆÅ¸½
1. Number of loan accounts (proxy for number of
50.99 ¥¸¸‰¸ ¬¸½ ¤¸[õ ˆÅ£ 31.3.2008 ˆÅ¸½ 52.14 ¥¸¸‰¸ í¸½ Š¸ƒÄ ]¸¸½
houses) increased from 50.99 lakh as on
2.25 œÏ¢÷¸©¸÷¸ ˆÅú ¨¸¼¢Ö ™©¸¸Ä÷¸¸ í¾ A 31.3.2007 to 52.14 lakh as on 31.3.2008
registering a growth of 2.25 per cent.

2. œÏ¢÷¸ ‰¸¸÷¸¸ ‚¸¾¬¸÷¸ †µ¸ ¬¸úŸ¸¸ Ÿ¸½¿ 5.38 ¥¸¸‰¸ ². ¬¸½ ¨¸¼¢Ö í¸½ˆÅ£ 2. Per account average credit limit increased from
Rs. 5.38 lakh to Rs. 5.59 lakh registering a
5.59 ¥¸¸‰¸ ². í¸½ Š¸ƒÄ ]¸¸½ 3.90 œÏ¢÷¸©¸÷¸ ˆÅú ¨¸¼¢Ö ™©¸¸Ä÷¸¸ í¾ A growth of 3.90 per cent.

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3. ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅú Ÿ¸¸°¸¸ 31.3.2007 ˆÅ¸½ 2,28,923.25 3. Outstanding housing loans increased from Rs.
2,28,923.25 crore as on 31.3.2007 to
ˆÅ£¸½”õ ². ¬¸½ ¤¸[õ ˆÅ£ 31.3.2008 ˆÅ¸½ 2,48,434.97 ˆÅ£¸½”õ ². í¸½
Rs.2,48,434.97 as on 31.3.2008 crore
Š¸ƒÄ ]¸¸½ 8.52 œÏ¢÷¸©¸÷¸ ˆÅú ¨¸¼¢Ö ™©¸¸Ä÷¸¸ í¾A registering a growth of 8.52 per cent.

4. œÏ¢÷¸ ¥¸½‰¸¸ ‚¸¾¬¸÷¸ ¤¸ˆÅ¸¡¸¸ †µ¸ 4.57 ¥¸¸‰¸ ². ¬¸½ ¤¸[õ ˆÅ£ 4.76 4. Per account average loan outstanding increased
¥¸¸‰¸ ². í¸½ Š¸‡ ]¸¸½ 4.76 œÏ¢÷¸©¸÷¸ ¨¸¼¢Ö ™©¸¸Ä÷¸¸ í¾A from Rs. 4.57 lakh to Rs. 4.76 lakh registering a
growth of 4.25 per cent.
5. „œ¸¡¸ºÄÆ÷¸ ¢¨¸©¥¸½«¸µ¸ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ׸£¸ ‚¸¨¸¸¬¸ ¢¨¸î¸
ˆÅ¸£¸½¤¸¸£ Ÿ¸½¿ ¨¸¼¢Ö ˆÅ¸ ¬¸»\¸ˆÅ í¾ ]¸¸½ ƒ¬¸ ‚¨¸¢š¸ Ÿ¸½¿ Ÿ¸¸°¸¸ ˆÅú ‚œ¸½®¸¸ 5. The above analysis is indicative of growth in
housing finance business by Scheduled
Ÿ¸»¥¡¸ Ô¸¸½÷¸ˆÅ í¾A
Commercial Banks as value rather than volume
6. ‚¸¨¸¸¬¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ Ÿ¸½¿ ž¸¸£ú ¨¸¼¢Ö ˆ½Å ¤¸¸¨¸]¸»™ ™½©¸ driven during this period.

Ÿ¸½¿ ¤¸”ú Ÿ¸¸°¸¸ Ÿ¸½¿ ‚¸¨¸¸¬¸¸½¿ ˆÅú Ÿ¸¸¿Š¸ ¢›¸£¿÷¸£ ¤¸[õ £íú í¾A ‚¸¨¸¸¬¸ ÷¸˜¸¸ 6. Despite such a significant growth in the portfolio
©¸í£ú Š¸£ú¤¸ú „œ¸©¸Ÿ¸›¸ Ÿ¸¿°¸¸¥¸¡¸, ž¸¸£÷¸ ¬¸£ˆÅ¸£, ˆ½Å ‚›¸º¬¸¸£, of housing and housing finance, the country's
2007 ˆ½Å ©¸º³ Ÿ¸½¿ ©¸í£ú ®¸½°¸¸½¿ Ÿ¸½¿ ‚¸¨¸¸¬¸¸½¿ ˆÅú ˆÅŸ¸ú ˆÅ¸ ‚›¸ºŸ¸¸›¸ requirement of housing continues to grow. As
per Ministry of Housing and Urban Poverty
24.71 ¢Ÿ¸¢¥¸¡¸›¸ ƒˆÅ¸ƒÄ¡¸¸¿ ¥¸Š¸¸¡¸¸ Š¸¡¸¸ í¾ ]¸¸½ 2012 ÷¸ˆÅ Ÿ¸¸Ÿ¸»¥¸ú Alleviation, Government of India (GOI), the
¨¸¼¢Ö ˆ½Å ¬¸¸˜¸ 26.53 ¢Ÿ¸¢¥¸¡¸›¸ ƒˆÅ¸ƒÄ¡¸¸¿ í¸½›¸½ ˆÅ¸ ‚›¸ºŸ¸¸›¸ í¾A ƒ¬¸ housing shortage in urban areas at the
Ÿ¸½¿ 99 œÏ¢÷¸©¸÷¸ ‚¸¨¸¸¬¸¸½¿ ˆÅú t:jr/ˆÅŸ¸ú ‚¸¢˜¸ÄˆÅ ´¢«’ ¬¸½ beginning of 2007 is estimated to be 24.71
million units which is likely to increase marginally
ˆÅŸ¸]¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ls laca/k í¾A ƒ¬¸ú œÏˆÅ¸£, ŠÏ¸Ÿ¸úµ¸ ¢¨¸ˆÅ¸¬¸ to 26.53 million units by 2012. Nearly 99 per cent
Ÿ¸¿°¸¸¥¸¡¸, ž¸¸£÷¸ ¬¸£ˆÅ¸£ ›¸½ 11¨¸ú¿ ¡¸¸½]¸›¸¸ ‚¨¸¢š¸ (2007-12) ˆ½Å of this housing requirement/shortage pertains to
™¸¾£¸›¸ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ 47.43 ¢Ÿ¸¢¥¸¡¸›¸ ‚¸¨¸¸¬¸ ƒˆÅ¸ƒÄ¡¸¸½¿ ˆÅú ˆÅŸ¸ú EWS/LIG segment households. Similarly,
Ministry of Rural Development, GOI has
ˆÅ¸ ‚›¸ºŸ¸¸›¸ ¥¸Š¸¸¡¸¸ Š¸¡¸¸ í¾¾ ¢]¸›¸Ÿ¸½¿ 80 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ Š¸£ú¤¸ú
estimated housing requirement of 47.43 million
£½‰¸¸ ¬¸½ ›¸ú\¸½ œ¸¢£¨¸¸£¸½¿ ˆ½Å ¢¥¸‡ í¾A units in rural areas during 11th Plan Period
(2007-12) of which more than 80 per cent is
7. 2000-07 ˆ½Å ™¸¾£¸›¸ ‚›¡¸ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ (Ÿ¸º‰¡¸÷¸À
envisaged for below poverty line (BPL) families.
¢›¸]¸ú ®¸½°¸ ˆ½Å ¤¸ÿˆÅ) ׸£¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ Ÿ¸½¿ Ÿ¸í÷¨¸œ¸»µ¸Ä ¬¸¢ŸŸ¸¢ª÷¸
¨¸¸¢«¸ÄˆÅ ¨¸¼¢Ö ™£ ˆ½Å ¤¸¸¨¸]¸»™, 31.3.2008 ˆÅ¸½ ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ 7. Despite a significant growth recorded in housing
finance portfolio by other SCBs (mainly the
†µ¸¸½¿ ˆÅ¸ ¤¸ÿˆÅ ŠÏºœ¸-¨¸¸£ ¢¨¸ž¸¸]¸›¸ ™©¸¸Ä÷¸¸ í¾ ¢ˆÅ £¸«’ïú¡¸ˆ¼Å÷¸ ¤¸ÿˆÅ¸½¿ ˆÅ¸ private sector banks) during 2000-07, bank
¢í¬¬¸¸ ¬¸ž¸ú ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆ½Å ˆºÅ¥¸ ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ group-wise distribution of outstanding housing
†µ¸¸½¿ Ÿ¸½¿ ¬¸¨¸¸Ä¢š¸ˆÅ 36.11 œÏ¢÷¸©¸÷¸ ˆÅú ¢í¬¬¸½™¸£ú ˜¸úA ž¸¸£÷¸ú¡¸ loans as on 31.3.2008, indicate that nationalised
banks retained maximum share of 36.11 per
¬’½’ ¤¸ÿˆÅ ÷¸˜¸¸ ‚›¡¸ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆ½Å ŠÏºœ¸ ˆÅ¸ ¢í¬¬¸¸,
cent in the total outstanding housing loans of all
¡¸˜¸¸ 31.3.2007 ˆÅ¸½ ÇÅŸ¸©¸À 22.35 œÏ¢÷¸©¸÷¸ ÷¸˜¸¸ 32.68 SCBs. The share of SBI Group and other SCBs as
œÏ¢÷¸©¸÷¸ ˜¸¸A ]¸¤¸¢ˆÅ ƒ¬¸ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ 31.3.2008 ˆÅ¸½ ÇÅŸ¸©¸À on 31.3.2008 stood at 23.83 per cent and 32.30
23.83 œÏ¢÷¸©¸÷¸ À 32.30 œÏ¢÷¸©¸÷¸ ˜¸¸ ¢¨¸™½©¸ú ¤¸ÿˆÅ¸½¿ ‚¸¾£ ŠÏ¸Ÿ¸úµ¸ per cent as compared to 22.35 per cent and
32.68 per cent respectively as on 31.3.2007.
®¸½°¸ú¡¸ ¤¸ÿˆÅ¸½¿ ˆÅ¸ ¢í¬¬¸¸ Ÿ¸¸\¸Ä 2007 ˆ½Å ‚¿÷¸ Ÿ¸½¿ ÇÅŸ¸©¸À4.96 Foreign Banks' share was 6.37 per cent and that
œÏ¢÷¸©¸÷¸ ‚¸¾£ 1.30 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ Ÿ¸¸\¸Ä 2008 ˆÅ¸½ of RRBs was 1.35 per cent as compared to 4.96
ÇÅŸ¸©¸À 6.37 œÏ¢÷¸©¸÷¸ ‚¸¾£ 1.35 œÏ¢÷¸©¸÷¸ ˜¸¸A per cent and 1.30 per cent respectively as at end
March 2007.

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8. An analysis of the outstanding portfolio of the

8. ¤¸ÿˆÅ¸½¿ ˆ½Å ¤¸ˆÅ¸¡¸¸ Ÿ¸™ ˆÅ¸ ¢¨¸©¥¸½«¸µ¸ ˆÅ£›¸½ œ¸£ œ¸÷¸¸ ¥¸Š¸÷¸¸ í¾ ¢ˆÅ
banks reveal that the share of rural areas in
‚¸¨¸¸¬¸ ¢¨¸î¸ Ÿ¸½¿ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ ˆÅ¸ ¢í¬¬¸¸ ‚œÏ¾¥¸ 2007-Ÿ¸¸\¸Ä 08 ˆ½Å housing finance has increased from 8.75 per
™¸¾£¸›¸ 8.75 œÏ¢÷¸©¸÷¸ ¬¸½ ¤¸[õˆÅ£ 11.00 œÏ¢÷¸©¸÷¸ í¸½ Š¸¡¸¸ ™»¬¸£ú cent to 11.0 per cent during April 2007-March,
2008. On the other hand, the share of lending to
‚¸½£, Ÿ¸í¸›¸Š¸£ ®¸½°¸¸½¿ ˆÅ¸½ ¢™¡¸½ †µ¸¸½¿ ˆÅú ¢í¬¬¸½™¸£ú 31.3.2007 ˆÅ¸½
metropolitan areas declined from 54.46 per cent
54.46 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ‹¸’ˆÅ£ 31.3.2008 ˆÅ¸½ 49.56 as on 31.3.2007 to 49.56 per cent as on
œÏ¢÷¸©¸÷¸ í¸½ Š¸ƒÄ ˜¸ú A ©¸í£ú ®¸½°¸¸½¿ ˆ½Å ¢í¬¬¸½ Ÿ¸½¿ ¨¸¼¢Ö ‚¸ƒÄ ]¸¸½ 24.40 31.3.2008. Share of urban areas increased from
24.40 per cent to 26.34 per cent during the
œÏ¢÷¸©¸÷¸ ¬¸½ ¤¸[õˆÅ£ 26.34 œÏ¢÷¸©¸÷¸ í¸½ Š¸ƒÄ ‚š¸Ä ©¸í£ú ®¸½°¸¸½¿ Ÿ¸½¿ ž¸ú period along with the share of semi-urban areas
31.3.2007 ˆÅ¸½ 12.39 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ 31.3.2008 ˆÅ¸½ which increased from 12.39 per cent as on
13.01 œÏ¢÷¸©¸÷¸ í¸½ Š¸ƒÄ A 31.3.2007 to 13.01 per cent as on 31.3.2008.

9. Bank data indicates that of the total outstanding

9. ¤¸ÿˆÅ ‚¸¿ˆÅ”õ½ ™©¸¸Ä÷¸½ íÿ ¢ˆÅ 2007-08 ˆ½Å ™¸¾£¸›¸ ¤¸ÿˆÅ¸½¿ ˆ½Å ˆºÅ¥¸ ¤¸ˆÅ¸¡¸¸
†µ¸ ˆÅ¸ ¢í¬¬¸¸, ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ ˆ½Å ¢í¬¬¸½ Ÿ¸½¿ ž¸¸£÷¸ú¡¸ ¬’½’ ¤¸ÿˆÅ ŠÏºœ¸
÷¸˜¸¸ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆ½Å Ÿ¸¸Ÿ¸¥¸½ Ÿ¸½¿ ÇÅŸ¸©¸À 2.73
œÏ¢÷¸©¸÷¸ ¬¸½ 3.15 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸˜¸¸ 1.82 œÏ¢÷¸©¸÷¸ ¬¸½ 3.99
œÏ¢÷¸©¸÷¸ ˆÅú ¢í¬¬¸½™¸£ú ™]¸Ä ˆÅú Š¸ƒÄ, ]¸¤¸¢ˆÅ ƒ¬¸ú ‚¨¸¢š¸ Ÿ¸½¿ ŠÏ¸Ÿ¸úµ¸
®¸½°¸ú¡¸ ¤¸ÿˆÅ¸½¿, £¸«’ïú¡¸ˆ¼Å÷¸ ¤¸ÿˆÅ¸½¿ ‚¸¾£ ¢¨¸™½©¸ú ¤¸ÿˆÅ¸½¿ Ÿ¸½¿ ÇÅŸ¸©¸À 0.63
œÏ¢÷¸©¸÷¸ ¬¸½ 0.60 œÏ¢÷¸©¸÷¸, 3.52 œÏ¢÷¸©¸÷¸ ¬¸½ 3.30 œÏ¢÷¸©¸÷¸
÷¸˜¸¸ 0.020 œÏ¢÷¸©¸÷¸ ¬¸½ 0.004 œÏ¢÷¸©¸÷¸ ˆÅú ¢Š¸£¸¨¸’
™]¸Ä ˆÅú Š¸ƒÄA
housing loan portfolio of banks, the share of rural
areas has gone up in case of SBI Group and other
SCBs from 2.73 per cent to 3.15 per cent, and
1.82 per cent to 3.99 per cent respectively during
2007-08 while in case of RRBs, Nationalised
Banks and Foreign Banks, it has recorded a
decline from 0.63 per cent to 0.60 per cent, 3.52
per cent to 3.30 per cent and from 0.020 per cent
to 0.004 per cent respectively during the same
period.
4.2.2 RuralHousingbyScheduledCommercialBanks

4.2.2 ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ׸£¸ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ Scheduled Commercial Banks (SCBs) are one of
the largest mobilizers of household savings and
‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ ‚˜¸Ä ¨¡¸¨¸¬˜¸¸ ˆ½Å ¬¸ž¸ú ®¸½°¸¸½¿ ˆ½Å ¢¥¸‡ major source of credit for all the sectors of the
economy. During the last decade, SCBs have
†µ¸ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ ˆÅ½ Ÿ¸º‰¡¸ 踸½÷¸ ‚¸¾£ Ž¸½’ú ¤¸\¸÷¸¸½¿ ˆÅ¸½ ]¸º’¸÷¸½
assumed a significant role as the largest
¨¸¸¥¸½ 踸½÷¸ íÿ ¢œ¸Ž¥¸½ ™©¸ˆÅ ˆ½Å ™¸¾£¸›¸, ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ institutional source for providing mortgage
¤¸¿š¸ˆÅ †µ¸ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ ¨¸¸¥¸½ ¬¸¤¸¬¸½ ¤¸”õ½ ¬¸¿¬˜¸¸Š¸÷¸ 踸½÷¸ ˆ½Å ³œ¸ loans.

Ÿ¸½¿ Ÿ¸í÷¨¸œ¸»µ¸Ä ž¸»¢Ÿ¸ˆÅ¸ ¢›¸ž¸¸ £í½ íÿA Today, SCBs have taken a drivers' seat in Indian
housing finance market. SCBs housing loan
¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿, ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ›¸½ ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ disbursal witnessed phenomenal growth during
¤¸¸]¸¸£ Ÿ¸½¿ ‚ŠÏµ¸ú ¬˜¸¸›¸ ŠÏíµ¸ ˆÅ£ ¢¥¸¡¸¸ í¾ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ the last few years. As a result, the outstanding
housing loan portfolio of SCBs stood at Rs.
¤¸ÿˆÅ¸½¿ ›¸½ fiNys dqN o"kksZa ˆ½Å ™¸¾£¸›¸ ‚¸¨¸¸¬¸ †µ¸ ¬¸¿¢¨¸÷¸£µ¸ ˆ½Å ®¸½°¸ Ÿ¸½¿
2,48,434.97 crore as at end March 2008
‚÷¡¸¢š¸ˆÅ ¨¸¼¢Ö ˆÅú í¾A œ¸¢£µ¸¸Ÿ¸ ¬¨¸³œ¸, ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ compared to Rs. 2,28,923.35 crore as at end
¤¸ÿˆÅ¸½¿ ˆÅú ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸ Ÿ¸™ Ÿ¸½½¿ Ÿ¸¸\¸Ä 2008 ˆ½Å ‚¿÷¸ Ÿ¸½¿ March 2007, thereby witnessing a significant
2,48,434.97 ². ˜¸½ ]¸¤¸¢ˆÅ Ÿ¸¸\¸Ä 2007 ˆ½Å ‚¿÷¸ Ÿ¸½¿ growth of 8.52 per cent.
2,28,923.35 ². ˜¸½ ¡¸í¸¿ œ¸£ 8.52 œÏ¢÷¸©¸÷¸ ˆÅú Ÿ¸í÷¨¸œ¸»µ¸Ä ¨¸¼¢Ö In sum, SCBs being the largest institutional
œÏ™¢©¸Ä÷¸ í¸½÷¸ú í¾A platform, have to dominate effectively so as to

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¬¸¿®¸½œ¸ Ÿ¸½¿, ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ ¬¸¤¸¬¸½ ¤¸”õ¸ ¬¸¿¬˜¸¸Š¸÷¸ foster home loans to all segments of society with
œ¥¸½’ûŸŸ¸Ä í¸½÷¸½ íº‡, œÏž¸¸¨¸©¸¸¥¸ú [¿Š¸ ¬¸½ ˆÅ¸£Ä¨¸¸ƒÄ ˆÅ£›¸ú í¾ ¢]¸¬¸¬¸½ focus on the low income households, in both
urban and rural areas. There is need to adopt a
©¸í£ú ‚¸¾£ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ ¬¸Ÿ¸¸]¸ ˆ½Å ¬¸ž¸ú ¨¸Š¸¸½ô ˆ½Å ¢¥¸‡ ¢¨¸©¸½«¸ :i
broad range of actions on many fronts, frame
¬¸½ ¢›¸Ÿ›¸ ‚¸¡¸ œ¸¢£¨¸¸£¸½¿ ˆÅ¸½, vkol †µ¸ „œ¸¥¸¤š¸÷¸¸ Ÿ¸½¿ ¨¸¼¢Ö í¸½ new approaches and introduce customised and
‚›¸½ˆÅ Ÿ¸¸½\¸¸½ô œ¸£ ¢¨¸¢ž¸››¸ œÏˆÅ¸£ ˆÅú ˆÅ¸£Ä¨¸¸ƒÄ ˆÅ£›¸½, ›¸‡ „œ¸¸¡¸¸½¿ ˆÅ¸½ flexible mortgage products in active partnership
‚œ¸›¸¸›¸½ ÷¸˜¸¸ £¸]¡¸ ‡¨¸¿ ¬˜¸¸›¸ú¡¸ ¬¸£ˆÅ¸£¸½¿, ‚›¡¸ ‚¥¸¸ž¸ˆÅ¸£ú with State and Local Governments, other non-
¬¸¿Š¸“›¸¸½¿ ‚¸¾£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ¨¸ ¢›¸]¸ú ®¸½°¸ ˆ½Å ‚¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ ˆ½Å profit organisations and formal sector
¬¸¿¬˜¸¸›¸¸½¿ ¬¸½ ¬¸¢ÇÅ¡¸ ž¸¸Š¸ú™¸£ú ˆÅ£ˆ½Å ŠÏ¸íˆÅ „›Ÿ¸º‰¸ ÷¸˜¸¸ ¥¸¸½\¸™¸£ institutions both in public and private sector. This
will ensure not only the existence of affordable
¤¸¿š¸ˆÅ „÷œ¸¸™¸½¿ ˆÅ¸½ ©¸º³ ˆÅ£›¸½ ˆÅú ]¸³£÷¸ í¾ ƒ¬¸¬¸½ ›¸ ˆ½Å¨¸¥¸ ¨¸í›¸ú¡¸
housing loan products having inbuilt flexible
‚¸¨¸¸¬¸ †µ¸ „÷œ¸¸™¸½¿, ¥¸\¸ú¥¸ú í¸Ÿ¸ú™¸£ú Ÿ¸¸›¸™¿”¸½¿ ¬¸¢í÷¸, ˆÅú
underwriting criteria but also a complete
„œ¸¥¸¤š¸÷¸¸ ¬¸º¢›¸¢©\¸÷¸ í¸½Š¸ú ¤¸¢¥ˆÅ ¬¸Ÿœ¸»µ¸Ä ‚¸¨¸¸¬¸ ¬¸Ÿ¸¬¡¸¸ ˆÅ¸ Housing Solution.
¬¸Ÿ¸¸š¸¸›¸ ž¸ú ¢Ÿ¸¥¸½Š¸¸A
(Source: BSR, March, 2008)
(踸½÷¸ À ¤¸ú‡¬¸‚¸£, Ÿ¸¸\¸Ä 2008)
4.3 The Co-operative Sector
4.3 ¬¸íˆÅ¸£ú ®¸½°¸ 4.3.1 The concept of Co-operatives as an institutional
4.3.1 ¥¸¸½Š¸¸½¿ ˆÅú ¢¨¸¢ž¸››¸ ]¸¿³£÷¸¸½¿ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¬¸¿¬˜¸¸Š¸÷¸ ÷¸¿°¸ ˆ½Å mechanism for satisfying various needs of the
people is premised on the principle of 'self-help'
:i Ÿ¸½¿ ¬¸íˆÅ¸¢£÷¸¸ ˆÅú œ¸¢£ˆÅ¥œ¸›¸¸ ’¬¨¸ ¬¸í¸¡¸÷¸¸’ ‚¸¾£ ’¬¸¸Ÿ¸»¢íˆÅ
as well as 'collective-effort'. Housing
œÏ¡¸¸¬¸’ ˆ½Å ¢¬¸Ö¸›÷¸ œ¸£ ‚¸š¸¸¢£÷¸ í¸½÷¸ú í¾A ‚¸¨¸¸¬¸ ¬¸íˆÅ¸¢£÷¸¸ ˆÅ¸ cooperatives have a prominent place in the
™½©¸ ˆÅ½ ¬¸íˆÅ¸£ú ‚¸›™¸½¥¸›¸ Ÿ¸½¿ Ÿ¸º‰¡¸ ¬˜¸¸›¸ í¾A ¬¸íˆÅ¸£ú ®¸½°¸ ›¸½ cooperative movement in the country. The co-
operative sector has played an important role in
‚œ¸›¸½ ¬¸™¬¡¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ Ÿ¸½¿ Ÿ¸º‰¡¸ ž¸»¢Ÿ¸ˆÅ¸ ¢›¸ž¸¸ƒÄ í¾ providing housing to their members and has
‚¸¾£ ¢]¸¬¸ˆÅ¸ ™½©¸ ž¸£ Ÿ¸½¿ Ÿ¸í÷¨¸œ¸»µ¸Ä œÏž¸¸¨¸ œ¸”õ¸ í¾A ¬¸íˆÅ¸£ú ®¸½°¸ ¬¸½ made significant impact across the country. The
co-operative sector is expected to play a lead
ž¸»¢Ÿ¸ ‚¢š¸ŠÏíµ¸, ž¸»¢Ÿ¸ ¨¸ ‚¸¨¸¸¬¸ ¬˜¸¥¸ ˆ½Å ‚¸¤¸¿’›¸ ‚¸¾£ ŠÏºœ¸-
role, particularly in land acquisition, allotment of
‚¸¨¸¸¬¸ ˆÅ¸½ œÏ¸½÷¬¸¸í›¸ ™½›¸½ ÷¸˜¸¸ ‚œ¸›¸ú œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ Ÿ¸½¿ ¬¸º¢¨¸š¸¸‚¸½¿ land and housing sites to encourage group-
ˆ½Å ¢¨¸ˆÅ¸¬¸, ]¸¾¬¸¸¢ˆÅ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸ Ÿ¸½¿ œÏ¸¨¸š¸¸›¸ housing and development of amenities in their
projects, as envisaged in the National Housing
í¾, ‚ŠÏµ¸ú ž¸»¢Ÿ¸ˆÅ¸ ¢›¸ž¸¸›¸½ ˆÅú ‚¸©¸¸ ˆÅú ]¸¸÷¸ú í¾A
and Habitat Policy.
ž¸¸£÷¸ú¡¸ £¸«’ïú¡¸ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸ The National Co-operative Housing Federation of
4.3.2 ž¸¸£÷¸ú¡¸ £¸«’ïú¡¸ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸ (‡›¸ ¬¸ú ‡\¸ ‡ûÅ) ˆÅú India
©¸ú«¸Ä ¬¸¿Š¸“›¸ ˆ½Å ³œ¸ Ÿ¸½¿ ¬˜¸¸œ¸›¸¸ ™½©¸ Ÿ¸½¿ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ 4.3.2 The National Cooperative Housing Federation of
ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸¸½¿ Ÿ¸½¿ ¬¸Ÿ¸›¨¸¡¸, Ÿ¸¸Š¸Ä ™©¸Ä›¸ ‡¨¸¿ ¤¸[õ¸¨¸¸ ™½›¸½ ˆ½Å ¢¥¸‡ ˆÅú Š¸ƒÄ India (NCHF) is the nationwide organization of
the Indian Cooperative Housing Movement. The
˜¸úA £¸«’ïú¬¸ ¬÷¸£ œ¸£ ‡½¬¸½ ¬¸¿Š¸“›¸ ˆÅú ¬˜¸¸œ¸›¸¸ ˆÅ¸ Ÿ¸»¥¸ „Ó½©¡¸ ‡¨¸¿
basic thrust of its formation was to have an
]¸¸½£ ™½©¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¬¸íˆÅ¸¢£÷¸¸ ˆ½Å ®¸½°¸ Ÿ¸½¿ „››¸¡¸›¸, ¢¨¸ˆÅ¸¬¸ ‡¨¸¿ organization at the national level to assume the
¬¸Ÿ¸›¨¸¡¸ Š¸¢÷¸¢¨¸¢š¸¡¸¸½¿ ˆÅ¸½ ‚¸Š¸½ ¤¸[õ¸›¸¸ í¾A responsibility of promoting, developing and
coordinating the activities of housing
cooperatives in the country.
¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ [¸¿\¸½ Ÿ¸½¿ ¬¸¤¸¬¸½ ›¸ú\¸½ ¬÷¸£ œ¸£ œÏ¸˜¸¢Ÿ¸ˆÅ ‚¸¨¸¸¬¸
¬¸íˆÅ¸¢£÷¸¸ ‚¸¾£ £¸]¡¸ ¬÷¸£ œ¸£ ©¸ú«¸Ä ¬¸íˆÅ¸¢£÷¸¸ ‚¸¨¸¸¬¸ ¬¸¿‹¸ í¾A The cooperative housing structure consists of
primary housing cooperatives at the grass root
£¸]¡¸ ¬÷¸£ œ¸£ ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸ £¸«’ïú¡¸ ¬÷¸£ ˆ½Å ©¸ú«¸Ä level and Apex Cooperative Housing Federations

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¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸ ¬¸½ ¬¸Ÿ¤¸Ö í¸½÷¸½ íÿ, ]¸¸½ „›¸ˆÅú ¨¸¼¢Ö (ACHFs) at the State level. ACHFs at the State
level are affiliated to NCHF, which looks after
£µ¸›¸ú¢÷¸¡¸¸¿, ›¸ú¢÷¸¡¸¸¿ ÷¸¾¡¸¸£ ˆÅ£›¸½ ‚¸¾£ ‚¸¨¸¸¬¸ ˆÅ¸¡¸ÄÇÅŸ¸¸½¿ ˆÅ¸½ \¸¥¸¸›¸½ their growth strategies, policy formulations and
ˆ½Å ¬¸¸˜¸-¬¸¸˜¸ ¢¨¸¢ž¸››¸ ¬¸¿¬˜¸¸›¸¸½¿ ¬¸½ ¬¸Ÿœ¸ˆÄÅ ˆÅ£ˆ½Å ƒ›¸ ¬¸¿‹¸¸½¿ ˆ½Å ¢¥¸‡ evolving housing programmes besides inter-
¢¨¸î¸ œ¸¸½«¸µ¸ ˆÅú ¨¡¸¨¸¬˜¸¸ ˆÅ£÷¸¸ ˜¸¸ ¢]¸¬¸¬¸½ †µ¸ ¥¸½›¸½ ¨¸¸¥¸½ ¨¡¸¢Æ÷¸¡¸¸½¿ facing with various institutions to channelize
finance for these Federations for onward lending
ˆÅ¸½ †µ¸ ¢Ÿ¸¥¸ ¬¸ˆ½¿ÅA ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, £¸«’ïú¡¸ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ to the ultimate borrowers. In addition, NCHF also
¬¸¿‹¸ ¬¸™¬¡¸ ¬¸¿‹¸¸½¿ ˆÅú ¢¨¸î¸ú¡¸ ¢¬˜¸¢÷¸, ¬¸¿Š¸“›¸¸÷Ÿ¸ˆÅ ‚¸¾£ ÷¸ˆÅ›¸úˆÅú helps the member Federations in improving their
®¸Ÿ¸÷¸¸‚¸½¿ ˆÅ¸½ „››¸÷¸ ˆÅ£›¸½ Ÿ¸½¿ ž¸ú ¬¸í¸¡¸÷¸¸ ˆÅ£÷¸½ íÿA financial, organisational and technical
capabilities.

©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸ Apex Cooperative Housing Federations

4.3.3 ¬¸¤¸¬¸½ ¢›¸\¸¥¸½ ¬÷¸£ œ¸£ œÏ¸˜¸¢Ÿ¸ˆÅ ‚¸¨¸¸¬¸ ¬¸íˆÅ¸£ú ¬¸¿¬˜¸¸‚¸½¿ ˆÅ¸½ 4.3.3 The primary housing co-operatives functioning at
the grass root level are supported by 26 ACHFs
™½©¸ž¸£ ˆÅú 26 ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ¬¸í¸¡¸÷¸¸ ™ú ]¸¸÷¸ú all over the country. These Federations have so
í¾A ƒ›¸ ¬¸¿‹¸¸½¿ ›¸½ œÏ¸˜¸¢Ÿ¸ˆÅ ‚¸¨¸¸¬¸ ¬¸íˆÅ¸£ú ¬¸¿¬˜¸¸‚¸½¿ ˆÅ¸½ ‚œ¸›¸½ far disbursed Rs. 10,440.57 crore to primary
¬¸™¬¡¸¸½¿ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸¿ ¤¸›¸¸›¸½ ˆ½Å ¢¥¸‡ ‚¤¸ ÷¸ˆÅ housing co-operatives for construction of
dwelling units for their members.
10,440.57 ˆÅ£¸½”õ ². ¬¸¿¢¨¸÷¸¢£÷¸ ¢ˆÅ¡¸½ íÿA
(Source: NCHF)
¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸ ]¸º’¸›¸¸(¬¸¿ŠÏíµ¸ ) À
4.3.4 ¢œ¸Ž¥¸½ ÷¸ú›¸ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸ ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ]¸º’¸¡¸½
Mobilisation of Resources:
¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸ ¢¨¸¨¸£µ¸ ›¸ú\¸½ ÷¸¸¢¥¸ˆÅ¸ Ÿ¸½¿ ¢™¡¸¸ Š¸¡¸¸ í¾ À
4.3.4 The details of resource mobilisation by the ACHFs
during the last three years are presented in the
table below:

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÷¸¸¢¥¸ˆÅ¸ 14 À ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ˆ½Å †µ¸ (¬¸Ÿ¸½¢ˆÅ÷¸)

Table 14: Borrowings of Apex Cooperative ¼:i, djksM+ esa½
Housing Federations (Cumulative) in Rs. Crore

†µ¸™¸÷¸¸ ‡]¸½¿¬¸ú Lending ˆºÅ¥¸ ˆÅ¸ œÏ¢÷¸©¸÷¸ ˆºÅ¥¸ ˆÅ¸ œÏ¢÷¸©¸÷¸ ˆºÅ¥¸ ˆÅ¸ œÏ¢÷¸©¸÷¸
Agency 2005-06 % of Total 2006-07 % of Total 2007-08 % of Total
]¸ú¨¸›¸ ¤¸úŸ¸¸ ¢›¸Š¸Ÿ¸ LIC 3401.10 36.78 3462.30 35.6 3529.74 35.6

£¸«Vïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ NHB 841.00 9.10 846.04 8.7 851.04 8.6

픈Ÿ½ HUDCO 1584.90 17.15 1589.34 16.3 1589.87 16.0

£¸]¡¸ ¬¸£ˆÅ¸£½¿ State Governments 247.40 2.68 247.43 2.5 264.07 2.7

]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ Deposits 2475.80 26.79 189.95 2.0 195.51 2.0

¤¸ÿˆÅ Banks 189.50 2.05 2890.51 29.7 2925.71 29.5

¤¸ÿˆÅ Debentures 142.60 1.54 142.60 1.5 142.6 1.4

¢”¤¸½¿\¸£ Others 360.70 3.90 360.75 3.7 413.3 4.2

‚›¡¸ Total 9243.00 100 9728.92 100.00 9911.84 100

踸½÷¸ À ž¸¸£÷¸ú¡¸ £¸«Vïú¡¸ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸

Source: National Co-operative Housing Federation of India

]¸ú¨¸›¸ ¤¸úŸ¸¸ ¢›¸Š¸Ÿ¸, ]¸¸½ œÏ¸£¢Ÿž¸ˆÅ ¨¸«¸¸½ô Ÿ¸½¿ ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ˆ½Å ¢¥¸‡
¢¨¸î¸ œ¸¸½«¸µ¸ ˆÅ¸ Ÿ¸º‰¡¸ 踸½÷¸ ˜¸¸, ‚¤¸ ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ˆÅú ™½¡¸÷¸¸
Ÿ¸™ Ÿ¸½¿ ¢í¬¬¸½™¸£ú ˆÅŸ¸ í¸½ £íú í¾A ]¸ú¨¸›¸ ¤¸úŸ¸¸ ¢›¸Š¸Ÿ¸ ¬¸½ †µ¸ ¬¸¿¢¨¸÷¸£µ¸ Ÿ¸½¿ ž¸ú
ˆÅŸ¸ú ‚¸ƒÄ í¾ ‚¸¾£ ]¸¸½ ‚¤¸ 35.6 œÏ¢÷¸©¸÷¸ í¾A ¡¸í 2005-06 Ÿ¸½¿ 36.78
œÏ¢÷¸©¸÷¸ ˜¸ú ]¸¸½ 2006-07 Ÿ¸½¿ ‹¸’ ˆÅ£ 35.6 œÏ¢÷¸©¸÷¸ £í Š¸ƒÄA 픈Ÿ½ ¬¸½
‚¸¾¬¸÷¸ †µ¸ ¢Š¸£¸¨¸’ ™]¸Ä ˆÅú Š¸ƒÄ í¾, ]¸¸½ ¢œ¸Ž¥¸½ ¨¸«¸Ä ˆÅú ÷¸º¥¸¸›¸¸ Ÿ¸½¿ 2007-08
ˆ½Å ™¸¾£¸›¸ 16.0 œÏ¢÷¸©¸÷¸ ˆÅú ™£ £íú ˆºÅ¥¸ †µ¸¸½¿ Ÿ¸½¿ ¤¸ÿˆÅ¸½¿ ‚¸¾£ £¸]¡¸ ¬¸£ˆÅ¸£¸½¿
ˆÅú ¬¸¿¡¸ºÆ÷¸ ¢í¬¬¸½™¸£ú, ]¸¸½ ¢œ¸Ž¥¸½ ˆºÅŽ ¨¸«¸¸½ô ¬¸½ ¤¸[õ £íú ˜¸ú, ‚¸¾£ ¡¸íú œÏ¨¸¼¢î¸
2006-07 Ÿ¸½¿ 29.7 œÏ¢÷¸©¸÷¸ ˆÅú ÷¸˜¸¸ 2007-08 ˆ½Å ™¸¾£¸›¸ 29.5 œÏ¢÷¸©¸÷¸
ˆÅú ¤¸›¸ú £íú ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ¢¥¸¡¸½ ˆºÅ¥¸ †µ¸¸½¿ Ÿ¸½¿ £¸.‚¸.¤¸ÿˆÅ
ˆÅú ¢í¬¬¸½™¸£ú ¥¸Š¸ž¸Š¸ ¡¸˜¸¸¨¸÷¸ £íúA
¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸ û¾Å¥¸¸¨¸ (¬¸¿¢¨¸÷¸£µ¸)À
4.3.5 ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ¢œ¸Ž¥¸½ ÷¸ú›¸ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸
¬¸¿¬¨¸úˆ¼Å÷¸/¬¸¿¢¨¸÷¸¢£÷¸ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅ¸½ ›¸ú\¸½ ÷¸¸¢¥¸ˆÅ¸ Ÿ¸½¿ ™©¸¸Ä¡¸¸ Š¸¡¸¸ í¾ À
LIC, which was the major source of funding for ACHFs in
the initial years, has now moderated at around 35 per
cent of total outstanding of ACHFs. The share in
borrowings from HUDCO also has remained stagnant of
around 16.0 per cent as also of NHBs at around 8-9 per
cent of total borrowing of ACHFs. The share of Banks in
the total borrowings, which has been increasing in the
past few years, has slightly moderated in 2007-08 at 29.5
per cent when compared to 29.7 per cent in 2006-07.
Deployment of Resources:
4.3.5 The sanctions/disbursements of housing loans by
ACHFs during the last three years are given in following
Table:

÷¸¸¢¥¸ˆÅ¸ 15 À ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ˆÅ¸ †µ¸ œ¸¢£\¸¸¥¸›¸ (¬¸Ÿ¸½¢ˆÅ÷¸)

Table 15: Lending Operations of Apex Co-operative
¼:i, djksM+ esa½
Housing Federations (cumulative) in Rs. Crore

¢ˆÅ¬Ÿ¸ Type 2004-05 2005-06 2006-07 2007-08

¬¸¿¬¨¸úˆ¼Å÷¸ †µ¸ Loan Sanctioned 432.10 529.8 10603.65 10958.87

¬¸¿¢¨¸÷¸¢£÷¸ †µ¸ Loan Disbursed 421.15 520.0 10125.22 10440.57

踸½÷¸ À ž¸¸£÷¸ú¡¸ £¸«Vªú¡¸ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸

Source: National Co-operative Housing Federation of India

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4.3.6 ¢œ¸Ž¥¸½ ™¸½ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸ ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ¢¨¸î¸ú¡¸ 4.3.6 State/UT-wise break up of housing loan
¬¸í¸¡¸÷¸¸ ¬¸½ ¢›¸¢Ÿ¸Ä÷¸ ƒˆÅ¸ƒÄ¡¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ ‚¸¾£ ¬¸¿¢¨¸÷¸¢£÷¸ ‚¸¨¸¸¬¸ disbursed and number of units constructed with
†µ¸¸½¿ ˆÅ¸ ¢¨¸¨¸£µ¸ £¸]¡¸/ˆ½Å›Í ©¸¸¢¬¸÷¸ œÏ™½©¸-¨¸¸£ ÷¸¸¢¥¸ˆÅ¸ 16 Ÿ¸½¿ financial assistance from ACHFs during the last
™©¸¸Ä¡¸¸ Š¸¡¸¸ í¾A two years is at Table -16.

÷¸¸¢¥¸ˆÅ¸ 16 À ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ‚¸¨¸¸¬¸ †µ¸ ¬¸¿¢¨¸÷¸£µ¸ ÷¸˜¸¸ ¢›¸¢Ÿ¸Ä÷¸ ƒˆÅ¸ƒÄ¡¸¸¿
¼:i, djksM+ esa½
Table 16: Housing Loan Disbursed and Units Constructed by ACHFs in Rs. Crore
2006-07 2007-08
¢›¸¢Ÿ¸Ä÷¸/¢¨¸î¸ ¢›¸¢Ÿ¸Ä÷¸/¢¨¸î¸
œ¸¸½¢«¸÷¸ ƒˆÅ¸ƒÄ¡¸¸¿ £¸¢©¸ œ¸¸½¢«¸÷¸ ƒˆÅ¸ƒÄ¡¸¸¿ £¸¢©¸
Units Constructed/ Units Constructed/
£¸]¡¸ State Financed Amount Financed Amount

‚¸¿šÏ œÏ™½©¸ Andhra Pradesh 1310 2032.71 1538 2078.82

‚¬¸Ÿ¸ Assam 173 2190.00 - -

¢¤¸í¸£ Bihar - - - -

\¸¿”úŠ¸[õ Chandigarh 1000 121.65 NA 283.11

¢™¥¥¸ú Delhi 104 1583.87 496 7544.00

Š¸¸½¨¸¸ Goa 39 106.62 22 175.62
Š¸º]¸£¸÷¸ Gujarat - - - -

í¢£¡¸¸µ¸¸ Haryana NA 39.10 22 77.79

¢íŸ¸¸\¸¥¸ œÏ™½©¸ Himachal Pradesh NA 45.49 NA 40.20
]¸ŸŸ¸» ˆÅ©Ÿ¸ú£ Jammu & Kashmir - - 3 540.23
ˆÅ›¸¸Ä’ˆÅ Karnataka - - - -
ˆ½Å£¥¸ Kerala 5839 6906.81 4404 3478.89

Ÿ¸š¡¸ œÏ™½©¸ Madhya Pradesh - - 2091 1599.10

Ÿ¸í¸¸£¸«’ï Maharashtra - - - -
Ÿ¸¢µ¸œ¸º£ Manipur - - - -

Ÿ¸½‹¸¸¥¸¡¸ Meghalaya - - 1 .20

„”õú¬¸¸ Orissa - - - -

œ¸¸¿¢”\¸½£ú Pondicherry 603 2000.92 692 2180.99

œ¸¿]¸¸¤¸ Punjab 2767 15260.52 2913 4623.15

£¸]¸¬˜¸¸›¸ Rajasthan 3067 417.25 313 69.09

÷¸¢Ÿ¸¥¸›¸¸”º Tamil Nadu 6917 10745.00 3552 6825.00

„ œÏ™½©¸ Uttar Pradesh - - - -

œ¸¢©\¸Ÿ¸ ¤¸¿Š¸¸¥¸ West Bengal 304 832.28 193 2018.44

ˆºÅ¥¸ Total: 22123 42282.22 16240 31534.63

踸½÷¸ À ž¸¸£÷¸ú¡¸ £¸«’ïú¡¸ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸

Source: National Co-operative Housing Federation of India (NCHF)

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2007-08 ˆ½Å ™¸¾£¸›¸ ¢™¥¥¸ú ˆÅú ¬¸ž¸ú ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ Delhi accounts for about 24 per cent of the housing loan
¬¸¿¢¨¸÷¸¢£÷¸ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅ¸ ¥¸Š¸ž¸Š¸ 24 œÏ¢÷¸©¸÷¸ ¢í¬¬¸¸ í¾, ¢]¸¬¸ˆ½Å ¤¸¸™ disbursed by all ACHP's during 2007-08 closely followed
21.7 œÏ¢÷¸©¸÷¸ ¢í¬¬¸½ ˆ½Å ¬¸¸˜¸ ÷¸¢Ÿ¸¥¸›¸¸”º ˆÅ¸ ¬˜¸¸›¸ í¾A ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ˆºÅ¥¸ by Tamil Nadu whose share stood at 21.7 per cent.
¬¸¿¢¨¸÷¸¢£÷¸ †µ¸¸½¿ Ÿ¸½¿ œ¸¿]¸¸¤¸ ˆÅú 14.7 œÏ¢÷¸©¸÷¸ ¢í¬¬¸½™¸£ú í¾, ƒ¬¸ ®¸½°¸ ׸£¸ Punjab’s share in total disbursement stood at 14.7 per
cent during the year, financing about 18 per cent of the
¢¨¸î¸ œ¸¸½¢«¸÷¸ ˆºÅ¥¸ ‚¸¨¸¸¬¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ ¥¸Š¸ž¸Š¸ 18 œÏ¢÷¸©¸÷¸ í¾A
total housing units financed by the sector. These three
2007-08 ˆ½Å ™¸¾£¸›¸ ¬¸ž¸ú ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ¬¸¿¢¨¸÷¸¢£÷¸ States together account for more than 60 per cent of the
‚¸¨¸¸¬¸ †µ¸¸½¿ Ÿ¸½¿ ƒ›¸ ÷¸ú›¸¸½¿ £¸]¡¸¸½¿ ˆÅú ¬¸¿¡¸ºÆ÷¸ ³œ¸ ¬¸½ ¢í¬¬¸½™¸£ú 60 œÏ¢÷¸©¸÷¸ ¬¸½ housing loans disbursed by ACHFs during 2007-08.
‚¢š¸ˆÅ í¾A
4.3.7 ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸ ©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸¸½¿ ׸£¸ ¬¸Ÿ¸½¢ˆÅ÷¸ 4.3.7 The quantum of cumulative sanction of housing
³œ¸ ¬¸½ ¬¸¿¬¨¸úˆ¼Å÷¸ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅú Ÿ¸¸°¸¸ ¤¸[õ ˆÅ£ 10,958.87 ˆÅ£¸½”õ ². í¸½ loan by the ACHFs increased to Rs. 10,958.87 crore
Š¸ƒÄ ]¸¤¸¢ˆÅ ¬¸Ÿ¸½¢ˆÅ÷¸ ¬¸¿¢¨¸÷¸£µ¸ ¤¸[õ ˆÅ£ 10,440.57 ˆÅ£¸½”õ ². í¸½ Š¸¡¸¸A during 2007-08 while cumulative disbursal rose to
Rs. 10,440.57 crore. (Source: NCHF)
(踸½÷¸ À ž¸¸£÷¸ú¡¸ £¸«’ïú¡¸ ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¬¸¿‹¸ )
Refinance Assistance from NHB
£¸.‚¸. ¤¸ÿˆÅ ¬¸½ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸
4.3.8 NHB’s refinance outstanding to the Co-operative
4.3.8 £¸.‚¸. ¤¸ÿˆÅ ˆÅ¸ ¬¸íˆÅ¸£ú ®¸½°¸ Ÿ¸½¿ ¤¸ˆÅ¸¡¸¸ œ¸º›¸¢¨¸Äî¸ ¡¸˜¸¸ 30 ]¸»›¸, sector stood at Rs. 128.30 crore, as on June 30, 2008.
2008 ˆÅ¸½ 128.30 ˆÅ£¸½”õ ². ˜¸¸A 30 ]¸»›¸, 2008 ÷¸ˆÅ ¬¸íˆÅ¸£ú ®¸½°¸ ˆ½Å An aggregate amount of Rs. 1719.07 crore has been
¢¨¸¬÷¸¸¢£÷¸ ¬¸Ÿ¸½¢ˆÅ÷¸ ³ œ¸ ¬¸½, 1,719.07 ˆÅ£¸½”õ ². ˆÅú ˆºÅ¥¸ £¸¢©¸ ¬¸¿¢¨¸÷¸¢£÷¸ extended to cooperative sector upto June 30, 2008.
ˆÅú Š¸ƒÄA

ˆ¼Å¢«¸ ‡¨¸¿ ŠÏ¸Ÿ¸úµ¸ ¢¨¸ˆÅ¸¬¸ ¤¸ÿˆÅ (‡‚¸£”ú¤¸ú{¸) Agriculture and Rural Development
Banks (ARDBs)

4.3.9 ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅŸ¸ú ˆÅ¸½ š¡¸¸›¸ Ÿ¸½¿ £‰¸÷¸½ íº‡, ˆºÅŽ £¸]¡¸¸½¿ ›¸½ 4.3.9 Keeping in view the housing shortage in the rural
ˆÅ¸›¸»›¸¸½¿ Ÿ¸½¿ „œ¸¡¸ºÆ÷¸ ¬¸¿©¸¸½š¸›¸ ˆÅ£›¸½ ˆ½Å ¤¸¸™, ‚¸¨¸¸¬¸ í½÷¸º ˆ¼Å¢«¸ ‡¨¸¿ ŠÏ¸Ÿ¸úµ¸ areas, a few State Governments, after suitable
¢¨¸ˆÅ¸¬¸ ¤¸ÿˆÅ¸½¿ ˆÅ¸½ †µ¸ ™½›¸½ ˆÅú ‚›¸ºŸ¸¢÷¸ œÏ™¸›¸ ˆÅúA \¸»¿¢ˆÅ ˆ¼Å¢«¸ ‡¨¸¿ ŠÏ¸Ÿ¸úµ¸ legislative amendments, have permitted the ARDBs to
lend for housing. As the ARDBs do not fall under the
¢¨¸ˆÅ¸¬¸ ¤¸ÿˆÅ ›¸ ÷¸¸½ ‚›¸º¬¸»¢\¸÷¸ ¤¸ÿˆÅ¸½¿ ˆÅú ª½µ¸ú Ÿ¸½¿ ‚¸÷¸½ íÿA ‚¸¾£ ›¸ íú ¢¨¸©¸½«¸±¸
category of either scheduled banks or specialised
‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ª½µ¸ú Ÿ¸½¿ ‚¸÷¸½ íÿ, £¸.‚¸. ¤¸ÿˆÅ ›¸½ ƒ¬¸ ª½µ¸ú ˆ½Å housing finance institutions, NHB, in order to extend
¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ˆ¼Å¢«¸ ‡¨¸¿ ŠÏ¸Ÿ¸úµ¸ ¢¨¸ˆÅ¸¬¸ financial assistance to this category of institutions,
¤¸ÿˆÅ¸½¿ ׸£¸ ]¸¸£ú ¢¨¸©¸½«¸ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ¢”¤¸½¿\¸£¸½¿ Ÿ¸½¿ ‚¿©¸™¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ formulated a scheme to subscribe to Special Rural
‡ˆÅ ¡¸¸½]¸›¸¸ ÷¸¾¡¸¸£ ˆÅúA ¡¸½ ¢”¤¸½¿\¸£ ˆ¼Å¢«¸ ‡¨¸¿ ŠÏ¸Ÿ¸úµ¸ ¢¨¸ˆÅ¸¬¸ ¤¸ÿˆÅ¸½¿ ׸£¸ œÏ¸œ÷¸ Housing Debentures (SRHDs) floated by ARDBs. These
Ÿ¸¸’ÄŠ¸½]¸ ¬¸½ œ¸¸½¢«¸÷¸ íÿA debentures are backed by the mortgages obtained by
the ARDBs.
£¸.‚¸. ¤¸ÿˆÅ ˆÅ¸ ƒ¬¸ ®¸½°¸ Ÿ¸½¿ ¤¸ˆÅ¸¡¸¸ œ¸º›¸¢¨¸Äî¸ ¡¸˜¸¸ 30 ¿]¸»›¸, 2008 ˆÅ¸½
139.47 ˆÅ£¸½”õ ². ˜¸¸A ¬¸Ÿ¸½¢ˆÅ÷¸ ³ œ¸ ¬¸½, ˆºÅ¥¸ 877.19 ˆÅ£¸½”õ ². ˆÅú £¸¢©¸ NHB’s refinance outstanding to this sector stood at Rs.
¬¸¿¢¨¸÷¸¢£÷¸ ˆÅú Š¸ƒÄA 139.47 crore, as on June 30, 2008. Cumulatively, an
aggregate amount of Rs. 877.19 crore has been
extended upto June 30, 2008.
£¸]¡¸ ¬¸íˆÅ¸£ú ¤¸ÿˆÅ
4.3.10 ™½©¸ Ÿ¸½¿ ¬¸íˆÅ¸£ú †µ¸ [¸¿\¸½ ˆÅ¸½ Ÿ¸]¸¤¸»÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ]¸¸½ ¼o"kZ State Co-operative Banks:
2007&08 ds nkSjku lHkh 'kh"kZ fuxfer vkokl la?kksa ds fy, 24 4.3.10 In order to strengthen the co-operative credit
izfr'kr vkokl _.k ds laforjax dks fy, ftEesnkj gSa mUgs structure of the country which is connected with the
fudjrk ls ½ £¸.‚¸. ¤¸ÿˆÅ „›í½¿ ¡¸¸ ÷¸¸½ œÏ÷¡¸®¸ ³œ¸ ¬¸½ ¡¸¸ ¢]¸¥¸¸ ˆ½Å›Í ¬¸íˆÅ¸£ú decentralised regions and semi-urban and rural areas,

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¤¸ÿˆÅ¸½¿/œÏ¸˜¸¢Ÿ¸ˆÅ ˆ¼Å¢«¸ †µ¸ ¬¸¢Ÿ¸¢÷¸¡¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢™¡¸½ ]¸¸›¸½ ¨¸¸¥¸½ ‚¸¨¸¸¬¸ NHB has been extending refinance assistance to the
State Co-operative Banks in respect of the housing loans
†µ¸¸½¿ ˆ½Å ¢¥¸‡ £¸]¡¸ ¬¸íˆÅ¸£ú ¤¸ÿˆÅ¸½¿ ˆÅ¸½ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅ£÷¸¸ £í¸ í¾A
given by them either directly or through the District
‚ž¸ú ÷¸ˆÅ, ƒ›¸Ÿ¸½¿ ¬¸½ ˆºÅŽ ¤¸ÿˆÅ¸½¿ ˆÅ¸½ íú £¸.‚¸. ¤¸ÿˆÅ ¬¸½ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ œ¸¸›¸½ ˆÅ¸ Central Co-operative banks/Primary Agricultural Credit
œ¸¸°¸ œ¸¸¡¸¸ Š¸¡¸¸ í¾A £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ƒ›¸ ¤¸ÿˆÅ¸½¿ ˆÅ¸½ ¬¸Ÿ¸½¢ˆÅ÷¸ ³ œ¸ ¬¸½ ¡¸˜¸¸ Societies. So far, a few of these banks have been found
30 ]¸»›¸, 2008 ÷¸ˆÅ ™ú Š¸ƒÄ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ ˆÅú £¸¢©¸ 1719.07 ˆÅ£¸½”õ eligible for availing the refinance facility from NHB. The
²œ¸¡¸½ ˜¸úA cumulative refinance assistance extended by NHB to
these banks stood at Rs. 1719.07 crore, till June 30,
2008.
œÏ¸˜¸¢Ÿ¸ˆÅ (©¸í£ú) ¬¸íˆÅ¸£ú ¤¸ÿˆÅ
Primary (Urban) Co-operative Banks
4.3.11 ‚›¸º¬¸»¢\¸÷¸ œÏ¸˜¸¢Ÿ¸ˆÅ (©¸í£ú) ¬¸íˆÅ¸£ú ¤¸ÿˆÅ ž¸ú £¸.‚¸. ¤¸ÿˆÅ ¬¸½
4.3.11 The Scheduled Primary (urban) Co-operative
œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ œ¸¸›¸½ ˆ½Å œ¸¸°¸ íÿ ¤¸©¸÷¸½Ä ¨¸½ ¢›¸š¸¸Ä¢£÷¸ ¨¸¬¸»¥¸ú Ÿ¸¸›¸™¿”¸½¿ ˆÅ¸ œ¸¸¥¸›¸
Banks are also eligible to avail refinance assistance from
ˆÅ£÷¸½ í¸½¿A í¸¥¸¸¿¢ˆÅ, ƒ›¸Ÿ¸½¿ ¬¸½ ‚¢š¸ˆÅ¸¿©¸ ¤¸ÿˆÅ £¸.‚¸.¤¸ÿˆÅ ¬¸½ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ NHB provided they meet the prescribed recovery norms.
œ¸¸›¸½ ˆÅú ¢¬˜¸¢÷¸ Ÿ¸½¿ ›¸íì íÿA 30 ]¸»›¸, 2008 ˆÅ¸½ ¬¸Ÿ¸¸œ÷¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, However, not many of these banks have been in a
£¸.‚¸.¤¸ÿˆÅ ׸£¸ ƒ¬¸ ª½µ¸ú ˆ½Å ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ 70 ˆÅ£¸½”õ ². ˆÅú £¸¢©¸ ¬¸¿¢¨¸÷¸¢£÷¸ position to avail refinance assistance from NHB. During
the year ended June 30, 2008, Rs. 70 crore was
ˆÅú Š¸ƒÄ ]¸¤¸¢ˆÅ ¨¸«¸Ä 2006-07 ˆ½Å ™¸¾£¸›¸ 30.0 ˆÅ£¸½”õ ². ˆÅú £¸¢©¸ ¬¸¿¢¨¸÷¸¢£÷¸
disbursed by NHB to this category of institutions as
ˆÅú Š¸ƒÄ ˜¸úA £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ƒ›¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¬¸Ÿ¸½¢ˆÅ÷¸ ³œ¸ ¬¸½ ¡¸˜¸¸ 30 ]¸»›¸, against the corresponding figure of Rs. 30 crore during
2008 ÷¸ˆÅ ™ú Š¸ƒÄ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ ˆÅú £¸¢©¸ 304.76 ˆÅ£¸½”õ ² œ¸¡¸½ ˜¸ú ‚¸¾£ the year 2006-07. The cumulative refinance assistance
30 ]¸»›¸, 2008 ˆÅ¸½ ¤¸ˆÅ¸¡¸¸ £¸¢©¸ 121.61 ˆÅ£¸½”õ ². ˜¸úA extended by NHB to these institutions stood at Rs.
304.76 crore till June 30, 2008 and the outstanding as on
June 30, 2008 was Rs. 121.61 crore.

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‚š¡¸¸¡¸ 5 À ž¸¸£÷¸ Ÿ¸½½¿ ¢£í¸¡¸©¸ú ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ

Chapter 5: Residential Housing Price Index in India

5.1 ¢£í¸¡¸©¸ú ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ À ‚¿÷¸£¸Ä«’ïú¡¸ 5.1 Residential Housing Price Indices:
œ¸¢£´©¡¸ International Overview

¢œ¸Ž¥¸½ ¨¸«¸¸½ô Ÿ¸½½¿ ¬¸Ÿ¸»\¸½ ¢¨¸©¨¸ Ÿ¸½¿ ¢¨¸ˆÅ¢¬¸÷¸ ‚¸¾£ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ In recent years developed as well as developing
Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ž¸¸£ú „÷¸¸£-\¸[õ¸¨¸ ™½‰¸¸ Š¸¡¸¸ í¾A ‡½¬¸¸ countries across the world are witnessing
widespread swings in housing prices. There are
ˆÅ£›¸½ ˆ½Å œ¸¡¸¸Äœ÷¸ ˆÅ£›¸½ ˆ½Å ˆÅ¸£µ¸ íÿ ¢]¸›¸¬¸½ ]¸›¸÷¸¸ ‚¸¾£ ›¸ú¢÷¸ good reasons why the public and policymakers
¢›¸š¸¸Ä£ˆÅŠ¸µ¸ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆ½Å „÷¸¸£-\¸[õ¸¨¸ œ¸£ ˆÅ”õú ›¸]¸£ should monitor house price developments
closely. The buying or selling of a dwelling is
£‰¸÷¸½ íÿ Ÿ¸ˆÅ¸›¸ ‰¸£ú™›¸½ ¡¸¸ ¤¸½\¸›¸½ œ¸£ ‡ˆÅ ¬¸¸Ÿ¸¸›¡¸ œ¸¢£¨¸¸£ ‚œ¸›¸½
typically the largest transaction a private
]¸ú¨¸›¸ Ÿ¸½¿ ¬¸¤¸¬¸½ ¤¸”õ¸ ¥¸½›¸™½›¸ ˆÅ£÷¸¸ í¾ ‚÷¸À ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆ½Å household enters into. Changes in residential
Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ¤¸™¥¸¸¨¸ ¬¸½ ž¸¸¨¸ú ǽÅ÷¸¸‚¸½¿ ‚¸¾£ ¢¤¸Ç½Å÷¸¸‚¸½¿ ˆ ú ‚œ¸›¸ú property prices are, therefore, likely to influence
substantially the budget plans and saving
¤¸]¸’ ¡¸¸½]¸›¸¸‚¸½¿ ‚¸¾£ ¤¸\¸÷¸ œ¸£ ž¸¸£ú œÏž¸¸¨¸ œ¸”õ›¸½ ˆÅú ¬¸¿ž¸¸¨¸›¸¸ decisions of the potential buyers and sellers.
í¸½÷¸ú í¾ ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, Ÿ¸ˆÅ¸›¸ ‰¸£ú™›¸½ ˆ½Å ¢¥¸‡ ¢¨¸î¸ú¡¸ Furthermore, as the purchases of houses are
predominantly funded by mortgage loans
¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ ¤¸¿š¸ˆÅ ‚¸š¸¸£ œ¸£ †µ¸ ™½›¸½ ¨¸¸¥¸¸½¿ Ÿ¸½¿ œÏŸ¸º‰¸ ¬˜¸¸›¸ í¾, originated by financial institutions, and that real
‚¸¾£ ž¸» ¬¸Ÿœ¸™¸ ˆÅ¸ „œ¸¡¸¸½Š¸ œÏ¸¡¸À ¤¸ÿˆÅ ¬¸½ †µ¸ ¥¸½›¸½ ˆ½Å ¢¥¸‡ estate property is widely used as a major
Ÿ¸º‰¡¸÷¸À {¸Ÿ¸¸›¸÷¸ ˆ½Å ³œ¸ Ÿ¸½¿ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾, ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ collateral for bank loans, there are strong
linkages between the residential property cycle
\¸ÇÅ ‚¸¾£ †µ¸ \¸ÇÅ ˆ½Å ¤¸ú\¸ Š¸í£¸ ¬¸¿¤¸¿¿š¸ í¾, ¤¸ÿ¢ˆ¿ÅŠ¸ ¬¸½Æ’£ ‚¸¾£ and the credit cycle, and by extension to the
¬¸Ÿ¸¢«’ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ ¢¨¸¬÷¸¸£ ¬¸½ ¡¸í ¬¸¿ž¸¨¸ íº‚¸ í¾A ƒ¬¸ˆ½Å banking sector and the macro economy.
Besides, for meeting the regulatory
‚¢÷¸¢£Æ÷¸, ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ‚œ¸½®¸¸‚¸½¿ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ‚¸¾£ „›¸ˆ½Å requirements and also to manage their risk,
]¸¸½¢‰¸Ÿ¸ ˆÅ¸ ž¸ú œÏ¤¸¿š¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ‚œ¸›¸½ financial institutions are required to specify their
¤¸¿š¸ˆÅ ˆÅ¸£¸½¤¸¸£ Ÿ¸½¿ ‚œ¸›¸½ ]¸¸½¢‰¸Ÿ¸ ˆÅ¸½ ¬œ¸«’ ³œ¸ ¬¸½ ¤¸÷¸¸›¸¸ í¸½Š¸¸ ]¸¸½ risks with regard to their mortgage portfolios by
estimating the actual liquidation value for every
„›í½¿ œÏ÷¡¸½ˆÅ ¤¸¿š¸ˆÅ £‰¸½ Ÿ¸ˆÅ¸›¸ ¬¸½ †µ¸ ¨¸¬¸»¥¸ú Ÿ¸½¿ í¸½›¸½ ¨¸¸¥¸½ ‰¸\¸Ä ˆÅ¸ home in their portfolio. Thus, housing prices can
‚›¸ºŸ¸¸›¸ ¥¸Š¸¸›¸½ ¬¸½ ±¸¸÷¸ í¸½ ¬¸ˆ½ÅŠ¸¸ ƒ¬¸ œÏˆÅ¸£ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅúŸ¸÷¸¸½¿ provide important insights for financial stability
analysis, since sharp increases and declines in
¬¸½ ¢¨¸î¸ú¡¸ ¬˜¸¸¢¡¸÷¨¸ ˆÅ¸ ¢¨¸©¸¥¸½«¸µ¸ ˆÅ£›¸½ Ÿ¸½¿ „œ¸¡¸¸½Š¸ú ]¸¸›¸ˆÅ¸£ú prices can have a detrimental impact on
¢Ÿ¸¥¸ ¬¸ˆÅ÷¸ú í¾, \¸»¿¢ˆÅ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ÷¸½]¸ú ¬¸½ ¨¸¼¢Ö ¡¸¸ „÷¸¸£ ¢¨¸î¸ú¡¸ ®¸½°¸ financial sector health and soundness, by
Ÿ¸½¿ †µ¸ Š¸ºµ¸¨¸î¸¸ ‚¸¾£ ¬¸¿œ¸¸¢©¨¸ÄˆÅ ˆ½Å Ÿ¸»¥¡¸ ˆÅ¸½ œÏž¸¸¢¨¸÷¸ ˆÅ£ˆ½Å affecting credit quality and the value of
collateral. Another application of house price
œÏ¢÷¸ˆ»Å¥¸ œÏž¸¸¨¸ ”¸¥¸ ¬¸ˆÅ÷¸¸ í¾A Ÿ¸ˆÅ¸›¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ¸½¿ ¬¸½ indices are to allow brokers and homeowners to
™¥¸¸¥¸¸½¿ ‚¸¾£ Š¸¼í ¬¨¸¸¢Ÿ¸¡¸¸½¿ ˆÅ¸½ ¢ˆÅ¬¸ú Ÿ¸ˆÅ¸›¸ ¢¨¸©¸½«¸ ˆÅ¸ ¨¸÷¸ÄŸ¸¸›¸ calculate the current value of an individual
dwelling as well as the amount of equity gained
Ÿ¸»¥¡¸ ‚¸¾£ Ÿ¸ˆÅ¸›¸ Ÿ¸»¥¡¸ Ÿ¸½¿ ¥¸¸ž¸ (¡¸¸ í︬¸) ¬¸½ ‚¢]¸Ä÷¸ ƒ¢Æ¨¸’ú (or lost) through house price appreciation (or
(¡¸¸ í¸¢›¸) Š¸µ¸›¸¸ ˆÅ£›¸½ Ÿ¸½¿ ¬¸º¢¨¸š¸¸ í¸½Š¸úA depreciation).

¢¨¸î¸ú¡¸ ®¸½°¸ Ÿ¸»¥¡¸¸¿ˆÅ›¸ ˆÅ¸¡¸ÄÇÅŸ¸ (‡ûҬ¸œ¸ú‡), ]¸¸½ ‚¸ƒÄ‡Ÿ¸‡ûÅ The Financial Sector Assessment Programme
(FSAP), which was introduced by the IMF and
‚¸¾£ ¢¨¸©¨¸ ¤¸ÿˆÅ ׸£¸ 1999 Ÿ¸½¿ ‚¸£¿žž¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸, ›¸½ the World Bank in 1999, recommended among
¢¬¸ûŸ¢£©¸ ˆÅú ¢ˆÅ ‚\¸¥¸ ¬¸Ÿœ¸¢î¸ ®¸½°¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ ˆÅ¸½ ž¸ú ¢¨¸î¸ú¡¸ others real estate prices, in the encouraged set
¢¬˜¸¢÷¸ ˆ½Å ¬¸¿ˆ½Å÷¸ˆÅ¸½¿ (‡ûҬ¸‚¸ƒÄ) Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸¸ \¸¸¢í‡A of Financial Soundness Indicators (FSIs).

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Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚\¸¥¸ ¬¸Ÿœ¸¢î¸ ¤¸¸]¸¸£, Ÿ¸»¥¡¸¸½¿ ˆÅú œÏ¨¸¼¢î¸¡¸¸½¿ ‚¸¾£ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ¸½¿ The importance of an authentic database on real
estate market driven price trends and price
ˆ½Å œÏ¸¢š¸ˆ¼Å÷¸ ”¸’¸¤¸½¬¸ ˆ½Å Ÿ¸í÷¨¸ œ¸£ ¤¸¸]¸¸£ ¢¨¸ˆÅ¸¬¸ ÷¸˜¸¸ ¤¸¸]¸¸£ indices, cannot be overemphasized as a crucial
œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ œ¸¸£™¢©¸Ä÷¸¸ ¨¸ ®¸Ÿ¸÷¸¸ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ ¢›¸µ¸¸Ä¡¸ˆÅ element of market development and enhancing
÷¸÷¨¸ ˆ½Å ³ œ¸ Ÿ¸½¿ ‚¢š¸ˆÅ ]¸¸½£ ›¸íì ”¸¥¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ í¸¥¸¸¿¢ˆÅ, the transparency and efficiency of market
process. However, measuring house prices
Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢ˆÅ¬¸ú ¬¸Ÿ¸¡¸ ¢¨¸©¸½«¸ œ¸£ ¬¸íú Ÿ¸»¥¡¸ ±¸¸÷¸ ˆÅ£›¸½ ˆÅú ¢¨¸¢š¸ accurately over time is not simple or
¬¸£¥¸ ¡¸¸ ¬¸úš¸ú ›¸íì í¾A ƒ¬¸ˆ½Å ¢¥¸‡ ]¸¢’¥¸ œÏ¢ÇÅ¡¸¸‚¸½¿, œ¸Ö¢÷¸¡¸¸½¿ straightforward. It involves complex conceptual,
methodological and data issues. Housing is an
‚¸¾£ ”¸’¸ Ÿ¸ºÓ¸½¿ ˆÅú ]¸³£÷¸ í¸½÷¸ú í¾A Ÿ¸ˆÅ¸›¸ ‡ˆÅ ‚÷¡¸¢š¸ˆÅ ]¸¢’¥¸ extremely heterogeneous good and sales of
Ÿ¸™ í¸½÷¸ú í¾ ‚¸¾£ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ¢¤¸ÇÅú ‚Ƭ¸£ ›¸íì ˆÅú ]¸¸÷¸ú í¾A houses are infrequent. Besides, the composition
of houses transacted in the market, changes
ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ¤¸¸]¸¸£ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ÇÅ¡¸-¢¨¸ÇÅ¡¸ ˆÅú œÏµ¸¸¥¸ú
over time and the quality of house is not
¬¸Ÿ¸¡¸ ˆ½Å ¬¸¸˜¸ ¤¸™¥¸ú í¾ ‚¸¾£ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú Š¸ºµ¸¨¸î¸¸ ‡ˆÅ ¬¸ú ›¸íì constant.
£í÷¸ú í¾A
There are two categories of data that might be
used to construct house price indices;
”¸’¸ ˆÅú ™¸½ ª½¢µ¸¡¸¸¿ íÿ ]¸¸½ ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¤¸›¸¸›¸½ Ÿ¸½¿ œÏ¡¸¸½Š¸ household surveys, such as the Survey of
¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A Ÿ¸ˆÅ¸›¸¸½¿ ˆÅ¸ ¬¸¨¸½Ä®¸µ¸ ]¸¾¬¸½ ƒ¿Š¸¥¸ÿ” Ÿ¸½¿ ‚¸¨¸¸¬¸ English Housing, that ask respondents to
ˆÅ¸ ¬¸¨¸½Ä®¸µ¸ ¢]¸¬¸Ÿ¸½¿ ¢¤¸Ç½Å÷¸¸ ¬¸½ ‚œ¸›¸½ Ÿ¸ˆÅ¸›¸ ˆÅ¸ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸»¥¡¸ estimate the current value of their home; and
administrative data on actual transactions.
‚¸ˆÅ¥¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ˆÅí¸ ]¸¸÷¸¸ í¾A ‚¸¾£ ¨¸¸¬÷¸¢¨¸ˆÅ ¥¸½›¸™½›¸ ˆÅ¸ There are numerous methods for compilation of
œÏ©¸¸¬¸¢›¸ˆÅ ”¸’¸ í¸½÷¸¸ í¾A ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¬¸¿ˆÅ¢¥¸÷¸ ˆÅ£›¸½ house price indices. Some of these methods are
based on simple summary measures, such as
ˆÅú ‚›¸½ˆÅ ¢¨¸¢š¸¡¸¸¿ íÿA „›¸Ÿ¸½¿ ¬¸½ ˆºÅŽ ¢¨¸¢š¸¡¸¸¿ ¬¸¸š¸¸£µ¸ laf{kIr the median price of houses transacted in a
„œ¸¸¡¸¸½¿ œ¸£ ‚¸š¸¸¢£÷¸ í¸½÷¸ú íÿA ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿ ‚÷¡¸¸š¸º¢›¸ˆÅ ¢¨¸ˆÅ¢¬¸÷¸ particular period. Recent advances in more
¢¨¸¢š¸¡¸¸½¿ ¬¸½ (]¸¾¬¸½ ‚¸£¸Ÿ¸™¸¡¸ˆÅ œ¸£¸¨¸÷¸Ä›¸ ‚¸¾£ ¢¤¸ÇÅú ¢¨¸¢š¸¡¸¸½¿ ˆÅú sophisticated methods (such as hedonic
regression and repeat sales methods) have
œ¸º›¸£¸¨¸¼¢î¸) Ÿ¸»¥¡¸ ¬¸¸¿¢‰¡¸ˆÅ¸½¿ ˆÅ¸½ ¬¸¿¿‹¸’›¸¸÷Ÿ¸ˆÅ ¨¸ Š¸ºµ¸¨¸î¸¸ Ÿ¸½¿ enabled price statisticians to adequately
¤¸™¥¸¸¨¸ ˆ½Å ‚›¸º¬¸¸£ Š¸µ¸›¸¸ ˆÅ£›¸½ ¬¸½ ¬¸í¸¡¸÷¸¸ ¢Ÿ¸¥¸ú í¾A account for compositional and quality
changes.

‚›÷¸£¸Ä«’ïú¡¸ ¬÷¸£ œ¸£ ¡¸í ™½‰¸¸ Š¸¡¸¸ í¾ ¢ˆÅ ‚¢š¸ˆÅ¸¿©¸ ¢¨¸ˆÅ¢¬¸÷¸

Internationally, it has been observed that most
‚¸¾£ ˆºÅŽ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸ ÇÅ¡¸-¢¨¸ÇÅ¡¸ íºƒÄ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å œÏ¸œ÷¸ of the developed countries and some developing
¥¸½›¸-™½›¸ ˆ½Å ‚¸¿ˆÅ”õ¸½¿ ˆ½Å ‚¸š¸¸£ œ¸£ ž¸» ¬¸Ÿœ¸¢î¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¢›¸¡¸¢Ÿ¸÷¸ countries prepare and publish real estate indices
regularly on the basis of transaction data. In
³œ¸ ¬¸½ ÷¸¾¡¸¸£ ‚¸¾£ œÏˆÅ¸¢©¸÷¸ ˆÅ£÷¸½ íÿA ƒ›¸ ™½©¸¸½¿ Ÿ¸½¿ ¨¸¸¿¢Ž÷¸ ‚¸¿ˆÅ”õ½ those countries, there is an effective system of
œÏ¸œ÷¸ ˆÅ£›¸½ ˆ ú ‡ˆÅ ¬¸º\¸¸² œÏµ¸¸¥¸ú í¾ ¢]¸¬¸ˆ½Å ‚¸š¸¸£ œ¸£ ¢ˆÅ¬¸ú capturing required data to produce a
standardised measure of true price changes
¢›¸š¸¸Ä¢£÷¸ ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ íº‡ „÷¸¸£-\¸[õö¸¨¸ ˆÅ¸½ Ÿ¸¸œ¸›¸½ over time. Several counties are having their
ˆÅú Ÿ¸¸›¸ˆÅ ¢¨¸¢š¸¡¸¸¿ íÿA ‚›¸½ˆÅ ™½©¸ ¢¨¸¢ž¸››¸ œÏ¡¸¸½]¸›¸¸½¿ ˆ½Å ¢¥¸‡ ‚œ¸›¸½ housing price indices with different objectives,
‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ÷¸¾¡¸¸£ ˆÅ£÷¸½ íÿ ]¸¾¬¸½ ®¸½°¸, ¢›¸¢Ÿ¸Ä÷¸ ®¸½°¸, scope, coverage area, methodology and
mechanism for collection of data. The
”¸’¸ ‡ˆÅ°¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢¨¸¢š¸¡¸¸¿ ÷¸˜¸¸ ÷¸¿°¸ ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ frequency of updating of house price indices
¬¸»\¸ˆÅ¸¿ˆÅ¸½¿ ˆÅ¸½ ¢›¸¡¸¢Ÿ¸÷¸ ³œ¸ ¬¸½ (Ÿ¸¸¢¬¸ˆÅ, ¢÷¸Ÿ¸¸íú ¡¸¸ ŽŸ¸¸íú differs across different countries. These indices
are being updated regularly (on monthly,
‚¸š¸¸£ œ¸£) ”¸’¸ „œ¸¥¸¤š¸ í¸½›¸½ ˆÅú ¬¸º¢¨¸š¸¸ ˆ½Å ‚¸š¸¸£ œ¸£ ‚Ô¸÷¸›¸ quarterly or half-yearly basis) depending upon
¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾A ›¸¸¾ ™½©¸¸½¿ ¡¸˜¸¸ ˆÅ›¸¸”¸, ¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ (¡¸»ˆ½Å), the ease of data collection. Experience in nine
¬¸¿¡¸ºÆ÷¸ £¸«’ï ‚Ÿ¸£úˆÅ¸ (¡¸»‡¬¸‡), œÏ€¸¿¬¸, ‚¸¬’ï½¢¥¸¡¸¸, countries namely, Canada, United Kingdom
(U.K.), United States of America (U.S.A.),
‚¸¢¬’¸, ]¸Ÿ¸Ä›¸ú, ¬¨¸ú”›¸ ‚¸¾£ í¸¿Š¸ˆÅ¸¿Š¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ France, Australia, Austria, Germany, Sweden
¬¸»\¸ˆÅ¸¿ˆÅ ÷¸¾¡¸¸£ ˆÅ£›¸½ ˆÅ½ ¤¸¸£½ Ÿ¸½¿ œÏ¸œ÷¸ ‚›¸ºž¸¨¸¸½¿ ˆÅ¸½ ›¸ú\¸½ ¤¸¸Æ¬¸ ¬¸¿. and Hong Kong in preparing housing price
indices have been summarized in Box No. 6.
6 Ÿ¸½¿ ¬¸¿®¸½œ¸ Ÿ¸½¿ ¢™¡¸¸ Š¸¡¸¸ í¾ A

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¤¸¸Æ¬¸ ¬¸¿. 6 - ¢¨¸©¨¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ¸½¿ ˆÅ¸ ¬¸¸£¸¿©¸

Box6 - Summary of Housing Price Indices across the world

™½©¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¬¸¿Š¸“›¸ ”¸’¸ 踸½÷¸ œ¸Ö¢÷¸

Country Index Organization Data source Methodology
ˆÅ›¸¸”¸ ›¸¡¸¸ ‚¸¨¸¸¬¸ ž¸¨¸›¸ ¢›¸Ÿ¸¸Ä÷¸¸/¢¨¸ˆÅ¸¬¸ˆÅ ‡›¸‡\¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å Ÿ¸»›©, ž¸»¢Ÿ¸ ˆÅ¸ ‚›¸ºŸ¸¸¢›¸÷¸ Ÿ¸»¥¡¸ ‚¸¾£ ‚›¡¸ ¡¸¸½Š¸
Ÿ¸»¥¡¸ ¬’½¢’¬ˆÅ
œ¸ú‡¥¸ ˆ½Å ¢¥¸‡ ¬¸¨¸½Ä®¸µ¸ ˆÅ£›¸½ ˆ½Å œÏ¢÷¸ ˆÅ¸£ˆÅ ÷¸÷¨¸¸½¿ ˆ½Å ‚¸¿ˆÅ”õ½ ‡ˆÅ°¸ ¢ˆÅ¡¸½ ]¸¸÷¸½ íÿ ¬¸¾Ÿœ¸¥¸¸½¿ ˆÅ¸½
Canada ¬¸»\¸ˆÅ¸¿ˆÅ ˆÅ›¸¸”¸
„™¸¡¸ú í¸½÷¸½ íÿ ¨¡¸¢Æ÷¸Š¸÷¸ ³œ¸ Ÿ¸½¿ ¬¸Ÿ¸¸›¸ Ÿ¸í÷¨¸ ¢™¡¸¸ ]¸¸÷¸¸ í¾, Ÿ¸í¸›¸Š¸£¸½¿ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸ ¢›¸Ÿ¸¸Äµ¸ ˆ½Å
(‡›¸‡\¸œ¸ú‡¥¸)
¡¸¸ ’½ ¥ ¸úûŸ½ › ¸ œ¸£ ¬¸¸®¸¸÷ˆÅ¸£ ‚¸¿ˆÅ”õ½ ‡ˆÅ°¸ ¢ˆÅ¡¸½ ]¸¸÷¸½ íÿ, \¸½›¸-¥¸½¬¸¢œ¸¡¸£½ ˆÅ¸ ûŸŸ¸Ä»¥¸¸,
New Statistics Canada
Housing
œÏˆÅ’úˆÅ£µ¸ ˆ¿Å’︽¥¸ œÏµ¸¸¥¸ú „œ¸¥¸¤š¸ 1997=100. ‚Ô¸÷¸›¸ Ÿ¸¸¢¬¸ˆÅ
Price Builders/ Developers are Data collected on house price, estimated
Index under obligation to respond cost of land and on detailed attributes of
(NHPI) to survey for NHPI. Face to model house. Samples are given equal
face interview as well as weight; Amongst metropolitan areas
telephonic interviews. weights are based on housing completion
System on disclosure data; Chain-Laspeyre’s formula; 1997=100,
control exists. updated monthly

ž¸»¢Ÿ¸
¡¸» ˆ½Å £¢]¸¬’ïú
UK ‡\¸œ¸ú‚¸ƒÄ ž¸»¢Ÿ¸ £¢]¸¬’ïú ž¸»¢Ÿ¸ £¢]¸¬’ïú ˆÅ¸ ‚œ¸›¸¸ ”¸’¸ œ¸¿]¸úˆ¼Å÷¸ ¢¤¸ÇÅú ˆÅ½ 100% ˆÅ¸ ¬¸¸š¸¸£µ¸ ‚¸¾¬¸÷¸ (Ÿ¸¸š¡¸)
Land
Registry Land Registry Simple average (median) of 100 % of sales
HPI Land Registry’s own data registered.

‚¸½”úœ¸ú „œ¸ œÏš¸¸›¸ ¤¸¿š¸ˆÅ †µ¸™¸÷¸¸‚¸½¿ ‚¸¾£ ¤¸¿š¸ˆÅ ¢Ÿ¸¢ª÷¸ ¬¸Ÿ¸¿]¸›¸, ÇÅ¡¸-¢¨¸ÇÅ¡¸ íºƒÄ ƒˆÅ¸ƒÄ¡¸¸½¿ ˆ½Å ‚¸¾¬¸÷¸ ¬¸½’
‡Ÿ¸-‡\¸ Ÿ¸¿°¸ú ˆÅ¸ †µ¸™¸÷¸¸ œ¸¢£«¸™ ˆÅ¸ ¬¸¨¸½Ä®¸µ¸ ˆÅ¸ Ÿ¸»¥¡¸ Ÿ¸¸œ¸›¸
œ¸ú‚¸ƒÄ ˆÅ¸¡¸¸Ä¥¸¡¸ Mix adjustment; measure the value of
Survey of Mortgage
ODPM- Office of average set of transacted dwellings
Lenders and Council of
HPI Deputy Mortgage Lenders
Prime Minister
¬¸º‰¸œ¸£ˆÅ Ÿ¸¿™ú, 1983 í¾¥¸úû¾ÅƬ¸ †µ¸ ‚›¸ºŸ¸¸½™›¸¸½¿ œ¸£
í¾¥¸úû¾ÅƬ¸ ׸£¸ †µ¸ ‚›¸ºŸ¸¸½™›¸
í¾¥¸úû¾ÅƬ¸ í¾¥¸úû¾ÅƬ¸
Halifax Halifax Loan approvals by Halifax ‚¸š¸¸¢£÷¸ ž¸¸£, í¾¥¸úû¾ÅƬ¸ œÏ¢÷¸¢›¸¢š¸ ƒˆÅ¸ƒÄ¡¸¸½¿ ˆ½Å Ÿ¸»¥¡¸ ˆÅ¸
Ÿ¸¸œ¸›¸, ‚Ô¸÷¸›¸ ¢÷¸Ÿ¸¸íú
Hedonic regression; weights based on 1983
Halifax loan approvals; measure the price of
Halifax representative dwelling; updated
quarterly.
¬¸º‰¸œ¸£ˆÅ Ÿ¸¿™ú, ¬¸¨¸½Ä ‡¨¸¿ Ÿ¸¸Á’ÄŠ¸½]¸ ¥¸½¿”£ (‡¬¸‡Ÿ¸‡¥¸) ˆÅú
ž¸¸£ ‚¸š¸¸¢£÷¸ Š¸¢÷¸Ÿ¸¸›¸ ‚¸¾¬¸÷¸, ž¸»¢Ÿ¸ £¢]¸¬’£ú ÷¸˜¸¸ ¬¸Ÿ¸»\¸½
™½©¸ ˆ½Å ˆÅ¸£¸½¤¸¸£ ˆ½Å £¸½¢¥¸¿Š¸ ‚¸¾¬¸÷¸ œ¸£ ‚¸š¸¸¢£÷¸, ¬¸Ÿ¸»\¸½ ™½©¸
ˆÅú œÏ¢÷¸¢›¸¢š¸ ƒˆÅ¸ƒÄ¡¸¸½¿ ˆ½Å Ÿ¸»¥¡¸ ˆÅ¸ Ÿ¸¸œ¸›¸, ‚Ô¸÷¸›¸ ¢÷¸Ÿ¸¸íú
Hedonic regression; weights based moving
›¸½©¸›¸ average of Survey and Mortgage Lenders
¨¸¸ƒ” ›¸½©¸›¸ ¨¸¸ƒ” ›¸½©¸›¸ ¨¸¸ƒ” ׸£¸ †µ¸ Ÿ¸¿]¸»£ú (SML), Land Registry and Nation wide
transactions ; measure the price of
Nation Nation wide Loan approvals by Nation Nationwide representative dwelling;
wide wide updated quarterly.

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¥¸Š¸ž¸Š¸ 4000 ¬¸Ÿœ¸™¸ ‡]¸½¿’¸½¿ ˆ½Å ¢Ÿ¸¢ª÷¸ ¬¸Ÿ¸¿]¸›¸, ‚¸¨¸¸¬¸ ¬’¸ÁˆÅ œ¸£ ‚¸š¸¸¢£÷¸ ž¸¸£, ‚¸¨¸¸¬¸
í¸½Ÿ¸ ’ï¾ˆÅ í¸½Ÿ¸ ’ﾈŠ‚¸¾¬¸÷¸ Ÿ¸»¥¡¸ ˆÅ¸ ¬¸¨¸½Ä®¸µ¸ ¬’¸ÁˆÅ ˆÅ¸ Ÿ¸»¥¡¸ Ÿ¸¸œ¸›¸
¡¸» ˆ½Å Survey of approx, 4000
Home
track Home track estates agents’ average Mix adjustment, weights based on housing
UK
price stock, measure value of housing stock.

£¸ƒ’ Ÿ¸»¨¸ £¸ƒ’ Ÿ¸»¨¸ ƒ¿’£›¸½’ œ¸£ ™]¸Ä ¢¤¸Ç½Å÷¸¸‚¸½¿ ׸£¸ ¢Ÿ¸¢ª÷¸ ¬¸Ÿ¸¿]¸›¸, ‚¸¨¸¸¬¸ ¬’¸ÁˆÅ œ¸£ ‚¸š¸¸¢£÷¸ ž¸¸£,
Ÿ¸¸¿Š¸ú Š¸ƒÄ ˆÅúŸ¸÷¸ ‚¸¨¸¸¬¸ ¬’¸ÁˆÅ ˆÅ¸ Ÿ¸»¥¡¸ Ÿ¸¸œ¸›¸
Right Right move Sellers’ asking prices Mix adjustment, weights based on housing
move posted on internet platform stock, measure value of housing stock.

‡œ¸€‡\¸ û½Å›¸ú Ÿ¸½ƒÄ ‡¨¸¿ œÏ½€”ú Ÿ¸½ˆÅ ¬¸½ ¤¸¿š¸ˆÅ ž¸¸¢£÷¸-œ¸º›¸£¸¨¸¼¢î¸-¢¤¸ÇÅú; ‚Ô¸÷¸›¸ ¢÷¸Ÿ¸¸íúž¸¸¢£÷¸-
¡¸»‡¬¸‡ ‡ûŇ- ˆÅ¸£¸½¤¸¸£ œ¸º›¸£¸¨¸¼¢î¸-¢¤¸ÇÅú; ‚Ô¸÷¸›¸ ¢÷¸Ÿ¸¸íú
USA ‡\¸œ¸ú‚¸ƒÄ
Mortgage transaction from Weighted-Repeat-Sales; updated quarterly.
FHFA-
‡œ¸€‡\¸‡ûŇ Fannie Mae and Freddie
HPI FHFA Mac.
‡›¸¬¸ú‚¸£ ‡›¸¬¸ú‚¸£‚¸ƒÄ ƒ Ä ‡ ûÅ ¢›¸]¸ú ¨¸
‚¸ƒÄƒÄ‡ûÅ ¨¸¸¢µ¸¢]¡¸ˆÅ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ÷¸˜¸¸ ¬¸¸Ÿ¸»¢íˆÅ
‡›¸¬¸ú‚¸£‚¸ƒÄƒÄ‡ûÅ ¬¸Ÿœ¸¢î¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¢÷¸Ÿ¸¸íú ¬¸Ÿ¸¡¸ ª¿‰¸¥¸¸
¢›¸¨¸½©¸ ¢›¸¢š¸¡¸¸½¿ ˆ½Å ‚¸¿ˆÅ”õ½ ‡ˆÅ°¸
¬¸Ÿœ¸¢î¸
í¾ ¢]¸¬¸Ÿ¸½¿ ¢›¸]¸ú, ¨¸¸¢µ¸¢]¡¸ˆÅ ž¸» ¬¸Ÿœ¸™¸ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å ¤¸¼í™
ˆÅ£÷¸¸ í¾ ‡›¸¬¸ú‚¸£ ‚¸ƒÄƒÄ‡ûÅ ‚œ¸›¸½
¬¸»\¸ˆÅ¸¿ˆÅ ‡›¸¬¸ú ‚¸£‚¸ƒÄ ƒ Ä ‡ ûÅ ¬¸Ÿœ¸¢î¸
‡›¸¬¸ú‚¸£ œ¸»¥¸ ˆÅú ¢›¸¨¸½©¸ ¢›¸«œ¸¸™ˆÅ÷¸¸ ˆ½Å ¨¸¸œ¸¬¸ú „œ¸¸¡¸¸½¿ ˆºÅ¥¸ ™£ íú
‚¸ƒÄƒÄ‡ûÅ ¬¸»\¸ˆÅ¸¿ˆÅ ‚¸¾£ ¢›¸«œ¸¸™›¸ ˆ½Å ‚›¡¸
]¸¸÷¸ú í¾
¬¸¸¿¢‰¡¸ˆÅú¡¸ „œ¸¸¡¸¸½¿ ˆÅ¸ ¢÷¸Ÿ¸¸íú
National ‡›¸œ¸ú‚¸ƒÄ ˆÅ¸½ ‚Ƭ¸£ ’Ÿ¸»¥¡¸¸¿ˆÅ›¸ ‚¸š¸¸¢£÷¸ ¬¸»\¸ˆÅ¸¿ˆÅ’
‚¸š¸¸£ œ¸£ œÏˆÅ¸©¸›¸ ˆÅ£÷¸¸ í¾
Council NCREIF collects data both ˆÅí¸ ]¸¸÷¸¸ í¾
of Real for individual and
Estate commercial properties and NCREIF Property Index is a quarterly time
investment c o l l e c t i ve i nve s t m e n t series composite total rate of return
Fiduciaries NCRIEF funds. NCREIF publishes measure of investment performance of a
(NCRIEF) the NCREIF Property Index very large pool of individual commercial real
Property (NPI) and other statistical estate properties.
Indices measures of performance NPI is often referred as an “appraisal based
on a quarterly basis. index.”
‡¬¸‡¿”œ¸ú/ Ÿ¸¸›¸ˆÅ ‚¸¾£ Š¸£ú¤¸
‚¸¨¸¸¬¸ú¡¸ ¢¤¸ÇÅú ˆÅ¸£¸½¤¸¸£ ˆ ¸ ¢¨¸¥¸½‰¸ ž¸¸¢£÷¸-œ¸º›¸£¸¨¸¼¢î¸-¢¤¸ÇÅú; ‚Ô¸÷¸›¸ ¢÷¸Ÿ¸¸íú
ˆ½Å¬¸-¢©¸¥¸£
¢£ˆÅ¸”Ä
‡\¸œ¸ú‚¸ƒÄ
S&P/ Standard Deed records of residential Weighted-Repeat-Sales; updated quarterly.
Case- & Poor’s sales transactions.
Shiller
HPI
›¸½©¸›¸¥¸ ‡›¸‡‚¸£
‡¬¸¸½¢©¸¡¸©¸›¸ Ÿ¸¸¾]¸»™¸ ‡ˆÅ¥¸ œ¸¢£¨¸¸£ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å Ÿ¸¸š¡¸ Ÿ¸»¥¡¸ ˆÅú Š¸µ¸›¸¸ Ÿ¸¸¢¬¸ˆÅ ¬¸¨¸½Ä®¸µ¸ ˆ½Å ÷¸í÷¸
‚¸ûÅ ¢£¡¸¥¸’¬¸Ä 150000 ¬¸½ ‚¢š¸ˆÅ ˆÅ¸£¸½¤¸¸£ ˆÅ¸ íº‡ ˆÅ¸£¸½¤¸¸£ ˆ½Å ‚¸š¸¸£ œ¸£ ˆÅú ]¸¸÷¸ú í¾
(‡›¸‡‚¸£)-
Ÿ¸¸¾]¸»™¸ Ÿ¸ˆÅ¸›¸ ¬¸¨¸½Ä®¸µ¸
Ÿ¸¸‹¡¸ Ÿ¸»¥¡¸
Survey of over 150000 Median price is calculated on the basis of
National NAR
Association transactions of existing transaction covered under monthly survey.
of Realtors single family homes.
(NAR)-
Existing
home median
value
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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

›¸½©¸›¸¥¸ ƒ¿¬’ú\¡¸»’
œÏ€¸¿¬¸ ‚¸ûÅ ¬’½¢’¢’¬ˆÅ ”¸’¸ ¬¸¿ŠÏíµ¸ ‚¸¾£ ›¸¸½’¢£¡¸¸½¿ ]¸¸½
‡¿¿” ƒÆ›¸¸¢Ÿ¸ˆÅ ‚¸ƒÄ‡›¸‡¬¸ƒÄƒÄ ¢¨¸¥¸½‰¸ ¤¸›¸¸÷¸½ í¾ ‚¸¾£ ¬’¸Ÿœ¸ ”ḻ’ú
¬’”ú]¸ ¨¸¬¸»¥¸÷¸½ íÿ, ׸£¸ ¬¸»\¸ˆÅ¸¿ˆÅ ˆÅ¸ ¬¸º‰¸™¸¡¸ú Ÿ¸¿™ú; ¥¸Š¸ž¸Š¸ 300 ž¸»Š¸¸½¢¥¸ˆÅ ]¸¸½›¸¸½¿ Ÿ¸½¿ ¥¸Š¸½
(‚¸ƒÄ‡›¸ œ¸¢£ˆÅ¥¸›¸ Ÿ¸ˆÅ¸›¸ Ÿ¸»¥¡¸¸½¿ ‡¨¸¿ ‚›¡¸ ¤¸¸¬ˆ½Å’ ¨¸¸¥¸½ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¬¸¸˜¸; ‚Ô¸÷¸›¸ ¢÷¸Ÿ¸¸íú
‡¬¸ƒÄƒÄ) -
¬¸»\¸ˆÅ¸¿ˆÅ ¬¸¿¤¸¿Ö ˆÅ¸£ˆÅ¸½¿ ˆÅ¸ ”¸’¸
France National
Institute of NISES D a t a c o l l e c t i o n a n d Hedonic regression; with fixed baskets
Statistics and computation of index by houses in some 300 geographic zones; up
Economic Notaries, who draw up dated quarterly.
Studies deeds and collect stamp
(NISES) - duty. Data on house price
Indices and other attributes.

‚¸¬’ï½¢¥¸¡¸¸ ‚¸¬’ï½¢¥¸¡¸›¸ £¸]¡¸ ¬¸£ˆÅ¸£ œÏ¸¢š¸ˆÅ¸¢£¡¸¸½¿ ¬¸½ Ÿ¸»¥¡¸ ž¸¸¢£÷¸ ‚¸¾¬¸÷¸ (Ÿ¸¸š¡¸); œÏ÷¡¸½ˆÅ Æ¥¸¬’£ ˆ½Å
¤¡¸»£¸½ ‚¸ûÅ ‚¸¾£ ¤¸¿š¸ˆÅ †µ¸™¸÷¸¸‚¸½¿ ¬¸½ ”¸’¸
¬’½¢’¬¸Æ¬¸ ‡¤¸ú‡¬¸
Ÿ¸ˆÅ¸›¸¸½¿ œ¸£ ‚¸š¸¸¢£÷¸ ž¸¸£
(‡¤¸ú‡¬¸)-
‡\¸œ¸ú‚¸ƒÄ
Australia Australian ABS P r i c e s f r o m S t a t e Hedonic regression; with fixed baskets
Bureau Government Authorities houses in some 300 geographic zones; up
of Statistics and data from mortgage dated quarterly.
(ABS)-HPI lenders
‚¸¬’ï½¢¥¸¡¸›¸ £¸]¡¸ ¬¸£ˆÅ¸£ œÏ¸¢š¸ˆÅ¸¢£¡¸¸½¿ ¬¸½ ¬¸¿‹¸’›¸ ¬¸Ÿ¸¿]¸›¸, £¸«’ïú¡¸ Ÿ¸ˆÅ¸›¸ Ÿ¸»¥¡¸ (Ÿ¸¸š¡¸) ª¼¿‰¸¥¸¸
œÏ¸œ¸’úÄ Ÿ¸¸›¸ú’¬¸Ä ˆÅ¸£¸½¤¸¸£ú ‚¸¿ˆÅ”õ½ ¢÷¸Ÿ¸¸íú ‚¸¾£ Ÿ¸¸¢¬¸ˆÅ Ÿ¸½¿ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ¨¸¼¢Ö ˆÅú Š¸µ¸›¸¸
(‡œ¸ú‡Ÿ¸) ‡¤¸ú‡Ÿ¸
Ÿ¸ˆÅ¸›¸ Ÿ¸»¥¡¸
ª¿¼‰¸¥¸¸
Australian ABM Transaction data from State Composition adjusted National house price
Property Government Authorities. (Median) series quarterly and monthly to
Monitors
calculate growth in prices
(APM) house
price series
‚¸¢¬’¸ ‚¸¢¬’›¸ ¬¸½¿’兩 ‚¸¢¬’›¸ ¬¸½¿’兩 ž¸¨¸›¸ ¢›¸Ÿ¸¸Ä÷¸¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ¬¸½ œÏ©›¸¸¨¸¥¸ú ¬¸»\¸ˆÅ¸¿ˆÅ¸½½¿ ˆÅ¸½ ¥¸¾¬¸œ¸½¡¸£½ ûŸŸ¸Ä»¥¸¸ ˆ½Å ‚›¸º¬¸¸£ ÷¸¾¡¸¸£ ¢ˆÅ¡¸¸
¬’½¢’¬’úˆÅ¥¸ ]¸¸÷¸¸ í¾; ‚Ô¸÷¸›¸ ¢÷¸Ÿ¸¸íú (Ÿ¸»¥¸÷¸À¢›¸Ÿ¸¸Äµ¸ ¥¸¸Š¸÷¸
ˆÅ¸¡¸¸Ä¥¸¡¸- ¬’½¢’¬’úˆÅ¥¸ ˆ½Å ׸£¸ ”¸’¸
‚¸„’œ¸º’ Ÿ¸»¥¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ)
¬¸»\¸ˆÅ¸¿ˆÅ
Austria Austrian Austrian Data from b u i l d i n g Indices compiled according to Laspeyre’s
Central Central companies t h r o u g h formula ; updated quarterly (Basically cost of
Statistical Statistical questionnaire construction Indices)
Office Office
output price
indices

82
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

]¸Ÿ¸Ä›¸ú û½Å”£¥¸ ¬’½¢’¬ˆÅ û½Å”£¥¸ ¬’½¢’¬ˆÅ

‚¸¢ûŬ¸ ‚¸ûÅ ®¸½°¸ú¡¸ ‚¸¾£ ¬¸¿‹¸ú¡¸ ¬’½¢’¬’úˆÅ¥¸ ׸£¸ ¬¸»\¸ˆÅ¸¿ˆÅ¸½½¿ ˆÅ¸½ ¥¸¾¬¸œ¸½¡¸£½ ûŸŸ¸Ä»¥¸¸ ˆ½Å ‚›¸º¬¸¸£ ÷¸¾¡¸¸£
‚¸¢ûŬ¸ ‚¸ûÅ
]¸Ÿ¸Ä›¸ú- ¢›¸Ÿ¸¸Äµ¸ ˆÅ¸¡¸¸Ä¥¸¡¸¸½¿ ˆÅ¸ ¬¸¨¸½Ä®¸µ¸ ¢ˆÅ¡¸¸ Š¸¡¸¸
]¸Ÿ¸Ä›¸ú ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾; ‚Ô¸÷¸›¸ ŽŸ¸¸íú, (Ÿ¸»¥¸÷¸À¢›¸Ÿ¸¸Äµ¸
¥¸¸Š¸÷¸ ¬¸»\¸ˆÅ¸¿ˆÅ
Germany Federal ¥¸¸Š¸÷¸ ¬¸»\¸ˆÅ¸¿ˆÅ)
Statistic
Office of Federal Surveys conducted by Indices compile according to Laspeyre’s
Germany Statistic r e g i o n a l a n d f e d e r a l formula ; updated half yearly (Basically cost
construction Office of statistical offices of construction Indices)
price indices Germany
í¸ƒœ¸¸½œ¸¸½’Ä ‡]¸ú - í¸ƒœ¸¸½œ¸¸½’Ä ‡]¸ú ¡¸»£¸½œ¸½¬¸ ƒ¿¿’£›¸½’-‚¸š¸¸¢£÷¸ ¢Ÿ¸¢ª÷¸ ¬¸Ÿ¸¿]¸›¸; ‚Ô¸÷¸›¸ Ÿ¸¸¢¬¸ˆÅ
]¸Ÿ¸Ä›¸ í¸„¬¸ œ¥¸½’ûŸŸ¸Ä ¬¸½ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ¢¤¸ÇÅú ˆ½Å
Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ‚¸¿ˆÅ”õ½
Hypoport Hypoport AG Home sales data from
AG German Mix adjustment; updated monthly.
EUROPACE internet-based
house price platform
index

¬¨¸ú”›¸ ¢¬¨¸¢”¬¸ ¢¬¨¸¢”¬¸ ‚¸¿ˆÅ”õ½ ¢›¸¨¸½©¸ˆÅ¸½¿ ¬¸½ œÏ¸œ÷¸ ‚¸¾£ ›¸‡ œ¸¸©\¸½ ds \¸½¿” ûŸŸ¸Ä»¥¸¸ ˆ½Å ‚›¸º¬¸¸£ í½”¸¢›¸ˆÅ Ÿ¸»¥¡¸ œ¸Ö¢÷¸
¬’½¢’¬’úˆÅ¥¸ ¬’½¢’¬’úˆÅ¥¸ ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ¬¸í¸¡¸÷¸¸ ¥¸½›¸½
ˆÅ¸¡¸¸Ä¥¸¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸
(‡¬¸¬¸ú¤¸ú)- ˆ½Å ¢¥¸‡ ¬¸£ˆÅ¸£ œÏ¸¢š¸ˆÅ¸¢£¡¸¸½¿ ˆÅ¸½
(‡¬¸¬¸ú¤¸ú)
Sweden ƒŸ¸¸£÷¸ œÏ¬÷¸º÷¸ ‚¸¨¸½™›¸ ûŸŸ¸Ä
Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ
Swedish Swedish D a t a o b t a i n e d f r o m Hedonic price methodology according to
Statistical Statistical i n v e s t o r s a n d f r o m Paasche’s chained formula.
Office (SCB) Office (SCB) application forms submitted
building to Government Authorities
price indices to obtain housing aid for
new construction
í¸¿Š¸ˆÅ¸¿Š¸ ¬¸Ÿœ¸¢î¸ £½¢’¿¿Š¸ ‡¨¸¿ ÇÅ¡¸ ¢¤¸ÇÅ¡¸ ˆ½Å ¨¸¸¬÷¸¢¨¸ˆÅ Ÿ¸»¥¡¸¸½¿ ˆÅú Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¢¨¸¢ž¸››¸ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å ˆÅ£-¡¸¸½Š¡¸ Ÿ¸»¥¡¸ ˆ½Å
¤¸¸]¸¸£ Ÿ¸»¥¡¸¸¿ˆÅ›¸ ¢¨¸ž¸¸Š¸ ¬¸Ÿ¸ú®¸¸ ¬’¸Ÿœ¸ ”ḻ’ú ˆÅú ]¸¸¿\¸ ˆÅ£›¸½ ˆ½Å ‚¸š¸¸£ œ¸£ ¤¸›¸¸¡¸½ ]¸¸÷¸½ íÿ ˆºÅŽ ¨¸Š¸¸½ô ˆÅú ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆÅ¸
(‚¸£‡¿”¨¸ú”ú),
¬’½¢’¬¸Æ¬¸- í¸¿Š¸ˆÅ¸¿Š¸ ¬¸£ˆÅ¸£ ¢¥¸‡ ‚¸£‡¿”¨¸ú”ú ׸£¸ ˆÅú ]¸¸÷¸ú í¾ ¬¸Ÿ¸½¢ˆÅ÷¸ ¬¸»\¸ˆÅ¸¿ˆÅ ˆÅ¸ œ¸¢£ˆÅ¥¸›¸ ‹¸’ˆÅ ¬¸»\¸ˆÅ¸¿ˆÅ¸½¿ ˆ½Å ž¸¸¢£÷¸
Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ‚¸¾¬¸÷¸ ˆ½Å ³œ¸ Ÿ¸½¿ ¢ˆÅ¡¸¸]¸¸÷¸¸ í¾ ¢£í¸¡¸©¸ú ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å Ÿ¸¸Ÿ¸¥¸½
Ÿ¸½¿ ¨¸÷¸ÄŸ¸¸›¸ ‚¸¾£ ¢œ¸Ž¥¸½ 11 Ÿ¸¸í Ÿ¸½¿ ÇÅ¡¸-¢¤¸ÇÅ¡¸ íºƒÄ ¬¸¿‰¡¸¸
ž¸¸£ ¬¨¸³œ¸, ]¸¤¸¢ˆÅ Š¸¾£ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å Ÿ¸¸Ÿ¸¥¸½ Ÿ¸½¿
ž¸¸£ ƒˆÅ¸ƒÄ ˆ½Å ˆºÅ¬¸úÄ ®¸½°¸ œ¸£ ‚¸š¸¸¢£÷¸ í¸½÷¸¸ í¾

Hong Kong Property Rating and Actual transaction prices Price indices are compiled on the basis of
Market Valuation are reviewed by the R&VD rateable values of various properties. A
Statistics - Department for stamp duty purposes. composite index for a certain class of
Price Indices (R&VD), properties is calculated as a weighted
Government average of the component indices. Weights
of Hong Kong. being the number of transactions during
current and previous 11 months in case of
residential properties; whereas the weights
in case of non-residential properties are
based on floor area of the components.

83
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
5.2 £½]¸ú”½Æ¬¸ À £¸.‚¸.¤¸ÿˆÅ ˆÅú œ¸í¥¸
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‚š¡¸¡¸›¸ ¢ˆÅ¡¸¸A ƒ¬¸ œ¸¸¡¸¥¸’ ‚š¡¸¡¸›¸ Ÿ¸½¿ œ¸¸¿\¸ ©¸í£¸½¿ ¡¸˜¸¸
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œ¸£, £¸.‚¸.¤¸ÿˆÅ ›¸½ ]¸º¥¸¸ƒÄ 2007 Ÿ¸½¿, ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸
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Ÿ¸í÷¨¸œ¸»µ¸ ¢¨¸¢©¸«’÷¸¸‡a
ü œ¸¸¡¸¥¸’ ‚š¡¸¡¸›¸ ˆ½Å ‚¸š¸¸£ œ¸£ ¢]¸¬¸Ÿ¸½¿ 5 ©¸í£¸½¿ ¡¸˜¸¸ ¢™¥¥¸ú, Ÿ¸ºŸ¤¸ƒÄ,
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ü ¤¸¸]¸¸£ œÏ¨¸¼¢î¸ ˆÅ¸½ ™©¸¸Ä›¸½ ˆ½Å ¢¥¸‡ ¨¸¸¬÷¸¢¨¸ˆÅ ˆÅ¸£¸½¤¸¸£ú Ÿ¸»¥¡¸¸½¿ œ¸£
‚¸š¸¸¢£÷¸ í¾ A
ü ‚¸£¿ž¸ Ÿ¸½¿ ˆ½Å¨¸¥¸ ¢£í¸¡¸©¸ú ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸¸ ˜¸¸; ƒ¬¸ ¤¸ú\¸
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¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ A
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2001 ¢¥¸¡¸¸ Š¸¡¸¸ ˜¸¸ ¨¸«¸Ä 2001-2005 ˆ ú ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ Ÿ¸»¥¡¸¸½¿
Ÿ¸½½¿ „÷¸¸£-\¸[õ¸¤¸ ¨¸¸¢«¸ÄˆÅ ‚¸š¸¸£ œ¸£ ¢¥¸¡¸½ Š¸‡ ˜¸½ ‚¸¾£ ¤¸¸™ Ÿ¸½¿ ‚Š¸¥¸½ ™¸½
¨¸«¸Ä ‚˜¸¸Ä÷¸ 2007 ÷¸ˆÅ „¬¸½ ‚Ô¸÷¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸A
84
Report on Trend and Progress of Housing in India, 2008
5.2 RESIDEX: NHB’s Initiative
5.2.1 NHB RESIDEX tracking the prices of
residential properties in Indian Market
Keeping in view the prominence of housing and
real estate as a major area for creation of both
physical and financial assets and its
contribution in overall national wealth, a need
was felt for setting up of a mechanism, which
could track the movement of prices in the
residential housing segment. Accordingly, NHB
at the behest of the Ministry of Finance
undertook a pilot study to examine the
feasibility of preparing such an index at the
national level. The pilot study covered 5 cities
viz. Bangalore, Bhopal, Delhi, Kolkata and
Mumbai. Besides, a Technical Advisory Group
(TAG), with Adviser, Ministry of Finance, as its
Chairman and comprising of experts as
members form RBI, NSSO, CSO, Labour
Bureau, NHB and other market players, was
constituted to deal with all the issues relating to
methodology, collection of data and also to
guide the process of construction of an
appropriate index. Based on the results of the
study and recommendations of the TAG, NHB
launched RESIDEX for tracking prices of
residential properties in India, in July 2007.
Box-7: NHB RESIDEX :
Salient Features
ü Based on a Pilot study which covered 5 cities viz.
Delhi, Mumbai, Kolkata, Bangalore and Bhopal
representing the various regions of the country.
ü Based on actual transactions prices to reflect the
market trends.
ü Initially to cover residential properties; in due
course, based on experience and depending upon
the availability of data, may be expanded to cover
commercial properties as well.
ü 2001 was taken as the base year for the study to be
comparable with the WPI and CPI. Year to year
price movement during the period 2001-2005
werecaptured, and subsequently updated for two
more years i.e. up to 2007.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

ü ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ Ÿ¸½¿ ™¬¸ ‚¸¾£ ©¸í£¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ À ü NHB RESIDEX has been expanded to cover ten
more cities, viz, Ahmedabad, Faridabad, Chennai,
‚ퟸ™¸¤¸¸™, ûÅ£ú™¸¤¸¸™, \¸½››¸¾, ˆÅ¸½¢\\¸, í¾™£¸¤¸¸™, ]¸¡¸œ¸º£, œ¸’›¸¸, Kochi, Hyderabad, Jaipur, Patna, Lucknow, Pune
¥¸‰¸›¸…, œ¸ºµ¸½ ‚¸¾£ ¬¸»£÷¸ A and Surat.

ü ¢œ¸Ž¥¸ú ¤¸¸£ ‚Ô¸÷¸›¸ ˆÅ£÷¸½ ‚¸¾£ ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ Ÿ¸½¿ ™¬¸ ‚¸¾£ ›¸‡
©¸í£¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£÷¸½ ¬¸Ÿ¸¡¸ ¤¸½¬¸ ¨¸«¸Ä ¤¸™¥¸ ˆÅ£ 2001 ˆ½Å ¤¸]¸¸¡¸
2007 ˆÅ£ ¢™¡¸¸ Š¸¡¸¸A
ü ¤¸½¬¸ ¨¸«¸Ä 2007 ˆÅ£›¸½ œ¸£, ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ˆÅ¸½ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ íú ]¸»›¸
2008 ÷¸ˆÅ ‚Ô¸÷¸›¸ ˆÅ£ ¢™¡¸¸ Š¸¡¸¸A
ü œÏ÷¡¸½ˆÅ ©¸í£ Ÿ¸½¿ ¢¨¸¢ž¸››¸ œÏ©¸¸¬¸¢›¸ˆÅ Ÿ¸¿”¥¸¸½¿/¬¸Ÿœ¸¢î¸ ˆÅ£ Ÿ¸¿”¥¸¸½¿ Ÿ¸½¿
Ÿ¸»¥¡¸¸½¿ ˆÅ¸ ‚š¡¸¡¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸A
ü ¬¸»\¸ˆÅ¸¿ˆÅ Ÿ¸»¥¡¸ ¬¸¸œ¸½®¸ ¢¨¸¢š¸ (¬¸¿©¸¸½¢š¸÷¸ ¥¸½¬¸¢œ¸¡¸£½ ˆÅú ¢¨¸¢š¸) ˆ½Å
‚›¸º¬¸¸£ ž¸¸¢£÷¸ ‚¸¾¬¸÷¸ œ¸Ö¢÷¸ ˆÅ¸ œÏ¡¸¸½Š¸ ˆÅ£ˆ½Å ÷¸¾¡¸¸£ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ A
ü Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å Ÿ¸»¥¡¸¸½¿ ˆ½Å œÏ¸ƒŸ¸£ú ”¸’¸ ˆÅ¸ ¬¸¿ˆÅ¥¸›¸ £¸«’ïú¡¸ ‰¡¸¸¢÷¸ ˆ½Å œÏ¸ƒ¨¸½’
¬¸¥¸¸íˆÅ¸£¸½¿/‚›¸º¬¸¿š¸¸›¸ ¬¸¿Š¸“›¸¸½¿ ˆÅú ¬¸½¨¸¸‡¿ ¥¸½÷¸½ íº‡ ž¸» ¬¸Ÿœ¸™¸ ‡]¸½¿’¸½¿
¬¸½ ‡ˆÅ°¸ ¢ˆÅ¡¸¸ ]¸¸ £í¸ í¾; ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸ ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸¸½¿ ˆÅ¸ ”¸’¸
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ ¤¸ÿˆÅ¸½¿ ׸£¸ ž¸ú ¬¸¿ˆÅ¢¥¸÷¸ ¢ˆÅ¡¸¸ ]¸¸ £í¸ í¾,
]¸¸½ „›¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ ¬¸¿¢¨¸÷¸¢£÷¸ ‚¸¨¸¸¬¸ †µ¸¸½ œ¸£ ‚¸š¸¸¢£÷¸
í¸½÷¸¸ í¾A
ü At the time of last updation and expansion of
coverage of NHB RESIDEX to 10 more cities, the
base year has been shifted from 2001 to 2007.
ü With 2007 as base, NHB RESIDEX was updated up
to June, 2008 during the year.
ü Prices have been studied for various administrative
zones/property tax zones constituting each city.
ü The index has been constructed using the weighted
average methodology with Price Relative Method
(Modified Laspeyre’s approach).
ü Primary data on housing prices is being collected
from real estate agents by commissioning the
services of private consultancy/research
organizations of national repute; in addition data on
housing prices is also being collected from the
housing finance companies and banks, based on
housing loans contracted by these institutions.

NHB RESIDEX is a pioneering attempt by National

™½©¸ Ÿ¸½¿ ¢£í¸¡¸©¸ú ¬¸Ÿœ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ ˆÅ¸ ¬¸¿ˆÅ¥¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡›¸‡\¸¤¸ú
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‚›¸ºŸ¸¸›¸ ¥¸Š¸¸ ¬¸ˆ½Å ÷¸˜¸¸ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ‹¸’¤¸[õ ˆÅ¸ ¢£ˆÅ¸”Ä £‰¸½ A ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸
¤¸¸]¸¸£ Ÿ¸½¿ Ÿ¸»¥¡¸¸½¿ ˆÅ¸½ ±¸¸÷¸ ˆÅ£›¸½ ˆÅú œÏ¢ÇÅ¡¸¸ ]¸¢’¥¸ í¾A ¢]¸¬¸ˆ½Å ‚›¸½ˆÅ ˆÅ¸£µ¸ íÿ
]¸¾¬¸½ ®¸½°¸, ¢›¸¢Ÿ¸Ä÷¸ ®¸½°¸, ¬¸¸Ÿ¸º™¸¢¡¸ˆÅ ¬¸º¢¨¸š¸¸‡¿, ¤¸›¸¸¨¸’ ‚¸¢™ ]¸¸½½ ‡ˆÅ ¬¸íú
Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ÷¸¾¡¸¸£ ˆÅ£›¸½ ˆÅú œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ ¤¸”õú \¸º›¸¸¾÷¸ú í¾ A
Housing Bank to measure residential prices in India. The
launch of NHB RESIDEX in India is arguably the maiden
attempt by a developing country to capture the price
movements in the residential properties at such a
comprehensive scale. Though the residential property
market in India is active, there is no organized market
which estimates the demand and supply forces and
tracks the price movements. The complexity of market
for house property in terms of the price discovery
mechanism which is an outcome of combination of
factors like locality, covered area, community facilities,
individual layouts etc., emerged as the major challenge
in choice of the appropriate methodology for
development of a representative price index.

85
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

5.2.2 ‡›¸‡\¸¤¸ú £½ ] ¸ú”½ Æ ¬¸ ˆÅú „÷œ¸¢î¸ 5.2.2 Genesis of NHB RESIDEX

ž¸¸£÷¸ú¡¸ ¤¸¸{¸¸£ Ÿ¸½¿, ¢œ¸Ž¥¸½ ˆºÅŽ ¨¸«¸¸½ô Ÿ¸½¿ ÷¸½]¸ú ¬¸½ íº‡ ©¸í£úˆÅ£µ¸
Rapid urbanization and high economic growth
‚¸¾£ „\\¸ ‚¸¢˜¸ÄˆÅ ¨¸¼¢Ö í¸½›¸½ ˆ½Å ¬¸¸˜¸-¬¸¸˜¸ ¤¸½í÷¸£ ‚˜¸Ä¬¸º¥¸ž¸÷¸¸ witnessed in the last few years combined with
ˆ½Å ûÅ¥¸¬¨¸³œ¸ ¬¸Ÿœ¸¢î¸ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ž¸¸£ú ¨¸¼¢Ö ™½‰¸ú Š¸ƒÄ í¾A ‚¸Ÿ¸ high liquidity has resulted in an upsurge in
property values in the Indian Market. The
¥¸¸½Š¸¸½¿ ˆÅ¸½ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸¸½¿ ˆÅú ‚¸œ¸»¢÷¸Ä ¬¸º¢¨¸š¸¸ ˆ ¸ Ÿ¸í÷¨¸ ‚¸¾£
importance of facilitating supply of affordable
¤¸¼í÷¸£ ‚¸š¸¸£ œ¸£ ‚¸¨¸¸¬¸ ¬¨¸¸¢Ÿ¸÷¨¸ ˆÅ¸½ ¤¸[õ¸¨¸¸ ™½›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ housing to the masses and the necessity of
„œ¸¡¸ºÆ÷¸ ›¸ú¢÷¸ ¢›¸š¸¸Ä£µ¸ í½÷¸º Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅúŸ¸÷¸¸½¿ Ÿ¸½½¿ „÷¸¸£-\¸[õ¸¨¸ designing a right mix of policy interventions to
œ¸£ ›¸]¸£ £‰¸›¸½ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸ ‚›¸ºž¸¨¸ ˆÅú Š¸ƒÄA ¤¸¸]¸¸£ encourage broad based home ownership
underline the relevance of tracking the
¢¨¸ˆÅ¸¬¸ ˆ½Å Ÿ¸í÷¨¸œ¸»µ¸Ä ÷¸÷¨¸ ‚¸¾£ ¤¸¸]¸¸£ œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ ™®¸÷¸¸ ‡¨¸¿
movement in prices of residential houses.
œ¸¸£™¢©¸Ä÷¸¸ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ ¨¸¸¬÷¸¢¨¸ˆÅ Ÿ¸»¥¡¸ œÏ¨¸¼¢î¸ ˆÅ¸ Development of a database on actual price
¢¨¸©¨¸¬¸›¸ú¡¸ ”¸’¸¤¸½¬¸ ¢¨¸ˆÅ¢¬¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸A trend has emerged as a crucial element of
market development and for enhancing the
œ¸¢£µ¸¸Ÿ¸¸½¿ ˆ½Å ‚¸š¸¸£ œ¸£, ¡¸í ‚›¸ºž¸¨¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ¢ˆÅ ¡¸í ¢¨¸©¨¸¸¬¸ efficiency and transparency in market process.

ˆÅ£›¸½ ˆ½Å œ¸¡¸¸Äœ÷¸ ˆÅ¸£µ¸ íÿ ¢ˆÅ, Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ÇÅ¡¸-¢¤¸ÇÅ¡¸ ˆ½Å ¬¸íú
Based on the results, it was felt that there were
Ÿ¸»¥¡¸¸½¿ ˆÅú œÏ¸œ÷¸ ]¸¸›¸ˆÅ¸£ú Ÿ¸½¿ ¤¸”õ¸ ‚¿÷¸£ í¸½›¸½ ˆ½Å ¤¸¸¨¸]¸¿»™ ž¸ú; ¡¸í good reasons to believe that, in spite of the
existing gaps in tracking the true prices of house
¤¸íº÷¸ „œ¸¡¸¸½Š¸ú í¸½Š¸¸ ¢ˆÅ ‡ˆÅ „œ¸¡¸ºÆ÷¸ ¬¸»\¸ˆÅ¸¿ˆÅ ˆ½Å ׸£¸ ¢£í¸¡¸©¸ú
transactions; it will be of great utility to put in
‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ®¸½°¸ Ÿ¸½¿ Ÿ¸»¥¡¸¸½¿ ˆ½Å „÷¸¸£-\¸[õ¸¨¸ ˆÅú ]¸¸›¸ˆÅ¸£ú place a meaningful and organized mechanism
‡ˆÅ°¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ „œ¸¡¸¸½Š¸ú ‚¸¾£ ¬¸¿Š¸¢“÷¸ œÏ¢ÇÅ¡¸¸ ¬˜¸¸¢œ¸÷¸ to track the movement of prices in the
residential housing segment by way of a
ˆÅú ]¸¸‡ ]¸¸½ ¤¸íº÷¸ „œ¸¡¸¸½Š¸ú í¸½Š¸¸A ƒ¬¸ ¬¸»\¸ˆÅ¸¿ˆÅ Ÿ¸½¿ ž¸¸£÷¸ Ÿ¸½¿
suitable Index. The index will be used for
‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ „÷¸¸£-\¸[õ¸¤¸ ˆÅ¸½ ™]¸Ä ¢ˆÅ¡¸¸ capturing the price movements of the
]¸¸‡Š¸¸, ƒ¬¸½ ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ›¸¸Ÿ¸ ¢™¡¸¸ Š¸¡¸¸ í¾ ¢]¸¬¸½ residential houses in India has been named
NHB RESIDEX and will be updated by NHB on a
£¸.‚¸.¤¸ÿˆÅ ׸£¸ ŽŸ¸¸íú ‚¸š¸¸£ œ¸£ ‚Ô¸÷¸›¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸A half yearly basis.

5.3 ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ À œ¸¢£ˆÅ¥œ¸›¸¸ ‚¸¾£ „¬¸ˆÅú 5.3 NHB RESIDEX: The Concept & its
Ÿ¸º‰¡¸ ¢¨¸©¸½«¸÷¸¸‡¿ Salient Features

5.3.1 Scope and Coverage of the Index

5.3.1 ¬¸»\¸ˆÅ¸¿ˆÅ ˆÅ¸ ™¸¡¸£¸ ‡¨¸¿ ®¸½°¸
The primary objective of NHB RESIDEX is to track
‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ˆÅ¸ „™Ã™½©¡¸ \¸¡¸¢›¸÷¸ ©¸í£¸½¿/›¸Š¸£¸½¿ Ÿ¸¿
‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ „÷¸¸£-\¸[õ¸¨¸ ˆÅú ]¸¸›¸ˆÅ¸£ú
‡ˆÅ°¸ ˆÅ£›¸¸ í¾ A ÷¸™›¸º¬¸¸£, ‚¸£¿ž¸ Ÿ¸½¿, ¬¸»\¸ˆÅ¸¿ˆÅ Ÿ¸½¿ ˆ½Å¨¸¥¸
¢£í¸¡¸©¸ú ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆÅ¸ œÏ¬÷¸¸¨¸ ¢ˆÅ¡¸¸ Š¸¡¸¸
í¸¥¸¸¿¢ˆÅ, ¤¸¸™ Ÿ¸½¿ œÏ¸œ÷¸ ‚›¸ºž¸¨¸ ˆ½Å ‚¸š¸¸£ œ¸£ ‚¸¾£ ”¸’¸ ˆÅú
„œ¸¥¸¤š¸÷¸¸ œ¸£ ¢›¸ž¸Ä£ í¸½÷¸½ íº‡, ¬¸»\¸ˆÅ¸¿ˆÅ ˆÅ¸ ™¸¡¸£¸ ¤¸[õ¸ˆÅ£
the movement in prices of residential properties,
in selected cities/towns. Accordingly, to begin
with, it was proposed to cover only the residential
properties. However, at a later stage, based on
the experience and availability of data, the scope
of the index would be expanded to cover

¨¸¸¢µ¸¢]¡¸ˆÅ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆÅ¸½ ž¸ú ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ A commercial properties, as well.

86
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
¤¸¸ÁƬ¸-8 À ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ˆÅú ]¸³£÷¸
¢ˆÅ¬¸ú ž¸ú ‚˜¸Ä ¨¡¸¨¸¬˜¸¸ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ÷¸˜¸¸ ¬¸¿¤¸¿¢š¸÷¸ Ÿ¸ºÓ½ Ÿ¸í÷¨¸œ¸»µ¸Ä ¢¨¸«¸¡¸
í¸½÷¸½ íÿA ¢¨¸î¸ú¡¸ ®¸½°¸ ˆÅú ´¢«’ ¬¸½, ƒ¬¸ ®¸½°¸ Ÿ¸½¿ †¢µ¸¡¸¸½¿ ‚¸¾£ †µ¸™¸÷¸¸‚¸½¿ ׸£¸
¢›¸¨¸½©¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾A ž¸» ¬¸Ÿœ¸™¸/‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ¤¸”õ¸ ¢›¸¨¸½©¸
Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ž¸¸£ú „÷¸¸£-\¸[õ¸¨¸ ¬¸½ œÏž¸¸¢¨¸÷¸ í¸½ ¬¸ˆÅ÷¸¸ í¾A ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸,
›¸ú¢÷¸ ¢›¸Ÿ¸¸Ä÷¸¸‚¸½¿ ˆÅ¸½ ‚œ¸›¸½ ¢¨¸¢ž¸››¸ Ÿ¸¸¾¢ÍˆÅ ‚¸¾£ £¸]¸ˆÅ¸½«¸ú¡¸ ›¸ú¢÷¸Š¸÷¸ „œ¸¸¡¸
÷¸¾¡¸¸£ ˆÅ£›¸½ ˆ½Å ¬¸Ÿ¸¡¸ ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸¸½¿ œ¸£ ¢¨¸©£¿Š¸ ¬¸½ ¢¨¸¢ž¸››¸ ¢í÷¸š¸¸£ˆÅ ŠÏºœ¸¸½¿
ˆÅ¸½ ¥¸¸ž¸ í¸½ ¬¸ˆÅ÷¸¸ í¾A
‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ¬¸½ ¢ˆÅ¬¸ú ‚¨¸¢š¸ ¢¨¸©¸½«¸ ˆ½Å ™¸¾£¸›¸ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆ½Å
Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ „÷¸¸£-\¸[õ¸¨¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ]¸¸›¸ˆÅ¸£ú ¢Ÿ¸¥¸ ¬¸ˆÅ÷¸ú í¾A ‚¸¨¸¸¬¸ú¡¸
¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ „÷¸¸£-\¸[õ¸¨¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¢¨¸¢¨¸š¸ ]¸¸›¸ˆÅ¸£ú (®¸½°¸¨¸¸£,
]¸¸½›¸-¨¸¸£ ‚¸¾£ ©¸í£-¨¸¸£) ¬˜¸¸›¸ú¡¸ œÏ¸¢š¸ˆÅ£µ¸¸½¿ ¸½«¸ š¡¸¸›¸ ™½›¸¸ í¸½÷¸¸ í¾A
‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ ˆÅú ¢›¸¡¸¢Ÿ¸÷¸ Ÿ¸¸›¸ú’ëˆÅ¸½ ‚œ¸›¸ú ¬¸Ÿœ¸¢î¸ ˆÅ£
›¸ú¢÷¸¡¸¸¿ ÷¸¾¡¸¸£ Ÿ¸½¿ „œ¸¡¸¸½Š¸ú ¬¸¿ˆ½Å÷¸ˆÅ ˆ½Å ³œ¸ Ÿ¸½¿ ¬¸í¸¡¸ˆÅ ¢¬¸Ö í¸½Š¸úA
‚¸¨¸¸¬¸¸½¿ ˆ½Å ‚¸œ¸»¢÷¸Ä œ¸®¸ œ¸£ Š¸¸¾£ ¬¸½ ›¸]¸£ £‰¸›¸½ œ¸£ ‚¸¨¸¸¬¸ ¢¨¸î¸ „Ô¸¸½Š¸
¢™‰¸¸ƒÄ ™½÷¸¸ í¾A ‚¸¨¸¸¬¸ ‚¢š¸ŠÏíú÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢¨¸î¸ œ¸¸½«¸µ¸ ˆÅ£›¸¸,
¬¸£ˆÅ¸£/¢¨¸¢ž¸››¸ ‡]¸½¿¢¬¸¡¸¸½¿ ˆ½Å ‚¸ª¡¸ ˆÅ¸¡¸ÄÇÅŸ¸¸½¿ Ÿ¸½½¿ œ¸»£ˆÅ ˆÅ¸ ˆÅ¸Ÿ¸ ˆÅ£÷¸¸ í¾A
‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸¸½«¸µ¸ Ÿ¸½¿ ‡ˆÅ Ÿ¸º‰¡¸ ˆÅ¸¡¸Ä, ¢¨¸î¸ œ¸¸½¢«¸÷¸ ˆÅú ]¸¸£ íú ¬¸Ÿœ¸¢î¸ ˆ½Å
Ÿ¸»¥¡¸ ˆÅ½ ¬¸íú Ÿ¸»¥¡¸¸¿ˆÅ›¸ ˆÅú ‚¸½£ š¡¸¸›¸ ™½›¸¸ í¸½÷¸¸ í¾A ƒ¬¸ ¬¸»\¸›¸¸ †µ¸
Ÿ¸»¥¡¸¸¿ˆÅ›¸ ‚¸¾£ †µ¸ ˆ½Å ¢¥¸‡ ™ú ]¸¸›¸½ ¨¸¸¥¸ú œÏ¢÷¸ž¸»¢÷¸ ˆÅú Š¸ºµ¸¨¸î¸¸ ˆ½Å
Ÿ¸»¥¡¸¸¿ˆÅ›¸ ¤¸íº÷¸ ‚¢š¸ˆÅ œ¸”õ÷¸¸ í¾ A ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ¬¸½ ¢¨¸î¸ œ¸¸½¢«¸÷¸ ˆÅú
]¸¸›¸½ ¨¸¸¥¸ú ¬¸Ÿœ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸ ‚¸¾£ ¢ˆÅ¬¸ú ¤¸ˆÅ¸¡¸¸ †µ¸ œ¸£ ™ú Š¸ƒÄ œÏ¢÷¸ž¸»¢÷¸ ˆÅ¸
Ÿ¸»¥¡¸¸¿ˆÅ›¸ ˆÅ£›¸½ Ÿ¸½¿ ž¸ú „œ¸¡¸¸½Š¸ú ¬¸í¸¡¸÷¸¸ ¢Ÿ¸¥¸ ¬¸ˆÅ÷¸ú í¾A ‡›¸‡\¸¤¸ú
£½]¸ú”½Æ¬¸ Ÿ¸½¿ „÷¸¸£-\¸[õ¸¤¸ ¬¸½ œ¸¡¸Ä¨¸½®¸ˆÅ ¬˜¸¸›¸ú¡¸/®¸½°¸ú¡¸ ‚¸š¸¸£ œ¸£ ž¸¸¨¸ú
¤¸¸]¸¸£¸½¿ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ž¸ú ‚›¸ºŸ¸¸›¸ ¥¸Š¸¸ ¬¸ˆÅ÷¸½ íÿA
Ÿ¸¾ÇŸ½ƒÆ›¸¸¢Ÿ¸ˆÅ ¬÷¸£ œ¸£, ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¨¸¼¢Ö, ¢›¸«œ¸¸™ˆÅ÷¸¸,
Ÿ¸ºÍ¸¬ûÅú¢÷¸, ¢¨¸î¸ú¡¸ ¢¬˜¸¢÷¸ ‚¸¢™ ˆÅ½ ¢¨¸¢ž¸››¸ ‚¸¢˜¸ÄˆÅ ¬¸»\¸ˆÅ¸¿ˆÅ¸½¿ ˆ½Å ¬¸¿ˆÅ¥¸›¸ Ÿ¸½¿
‡ˆÅ „œ¸¡¸¸½Š¸ú ¬¸¿ˆ½Å÷¸ˆÅ ˆ½Å ³œ¸ Ÿ¸½¿ „œ¸¡¸¸½Š¸ú ¢¬¸Ö í¸½ ¬¸ˆÅ÷¸¸ í¾A ¡¸í ‚›÷¸À
‚¬˜¸¸¡¸ú ÷¸º¥¸›¸¸, œÏ¨¸¼¢î¸ ¢¨¸©¸¥¸½«¸µ¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆ½ÅŠ¸¸ ]¸¸½ ›¸ú¢¿÷¸ ¢›¸Ÿ¸¸Ä÷¸¸‚¸½¿ ˆ½Å
¢¥¸‡ „œ¸¡¸¸½Š¸ú ]¸¸›¸ˆÅ¸£ú „œ¸¥¸¤š¸ ˆÅ£¸‡Š¸¸A
£¸«’ïú¡¸ ¬÷¸£ œ¸£ ‚¸¨¸¸¬¸ ‚¸¾£ ¬¸¿¤¸¿¢š¸÷¸ ¢¨¸«¸¡¸¸½¿ œ¸£ ¢¨¸©¨¸¬¸›¸ú¡¸ ”¸’¸¤¸½¬¸
÷¸¾¡¸¸£ ˆÅ£›¸¸ ¬¸™¸ íú ¬¸¤¸ \¸º›¸¸¾÷¸ú œ¸»µ¸Ä ˆÅ¸¡¸Ä £í¸ í¾A ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ¬¸íú
¢™©¸¸ Ÿ¸½¿ œ¸í¥¸¸ ˆÅ™Ÿ¸ í¸½Š¸¸A ¢]¸¬¸Ÿ¸½¿ ›¸ ˆ½Å¨¸¥¸ ‚¸¨¸¸¬¸ ÷¸˜¸¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸½
¬¸¿¤¸¿¢š¸÷¸ ¬¸»\¸›¸¸ ‚¸¾£ Ÿ¸»¥¡¸¸½¿ ˆÅ¸ ¢¨¸©¨¸¬¸›¸ú¡¸ ¨¸ ¢¨¸¬÷¸¼÷¸ ”¸’¸¤¸½¬¸ ¤¸›¸¸›¸½ Ÿ¸½½¿
Ÿ¸™™ ¢Ÿ¸¥¸½Š¸ú ¤¸¢¥ˆÅ ƒ¬¸ ®¸½½°¸ Ÿ¸½¿ œ¸¸£™¢©¸Ä÷¸¸ ž¸ú ¤¸[õ½Š¸úA
87
Report on Trend and Progress of Housing in India, 2008
Box 8: Need for NHB RESIDEX
Housing and related issues are important areas of
economy. From the point of view of financial sector,
there are exposures to this area by both borrowers and
lenders. Companies having large exposure to real
estate/housing may get affected by any large volatility
of prices. Further, house prices are an important
consideration for the policy makers in their various
monetary and fiscal policy measures. Regular
monitoring of the house prices can be useful inputs for
the different interest groups.
NHB RESIDEX facilitates tracking the movement in
prices of residential properties over a period of time by
different size of dwelling units. Granular information on
movement of prices of residential properties (location
wise, zone wise and city wise) will be a relevant indicator
for the local authorities in formulating their property tax
policies.
Closely following the supply side factors of housing is the
housing finance industry. Providing finance for house
acquisition has been a complementary focus of shelter
programmes of the government/various agencies. One
of the major considerations in housing finance is the
proper assessment of the value of property being
financed. This information has critical bearing on the
credit evaluation and assessment of the quality of the
security against the loan. NHB RESIDEX could be a
useful indicator for estimating the value of property to
be financed and also assess the extent of security cover
on any outstanding loan. Observers can also identify the
potential markets from the movements of the NHB
RESIDEX at the local/regional level.
At macroeconomic level, a house price index would be
useful tool in compilation of various economic indicators
of growth, output, inflation, financial health etc. It would
enable inter temporal comparisons, trend analysis, that
could form input for policy formulation.
Building up a reliable database on housing and related
factors at a national level has always been a challenge.
NHB RESIDEX could be the first step in the right
direction which will not only enable building up a large
and reliable database of prices and related information
on housing and housing finance, thereby facilitating
transparency in the sector.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

5.3.3 ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ¬¸¥¸¸íˆÅ¸£ ¬¸¢Ÿ¸¢÷¸ 5.3.3 NHB RESIDEX Advisory Committee

In order to guide and oversee the construction

‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ÷¸¾¡¸¸£ ˆÅ£›¸½ ‚¸¾£ ÷¸ˆÅ›¸úˆÅú ¬¸¥¸¸íˆÅ¸£ ŠÏºœ¸ of NHB RESIDEX and extension of its coverage,
(’ú‡]¸ú) ˆ ú ¢¬¸ûŸ¢£©¸ ˆ½Å ‚›¸º¬¸¸£ ]¸¨¸¸í£ ¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ to include all the 63 cities under Jawaharlal
©¸í£ú ›¸¨¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸ ˆ½Å ÷¸í÷¸ ‚¸›¸½ ¨¸¸¥¸½ ¬¸ž¸ú 63 ©¸í£¸½¿ ˆ ¸½ Nehru National Urban Renewal Mission
ƒ¬¸Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¤¸¸£½ Ÿ¸½¿ Ÿ¸¸Š¸Ä ™©¸Ä›¸ ÷¸˜¸¸ ¢›¸Š¸£¸›¸ú ˆÅ£›¸½ ˆ½Å (JNNURM); as recommended by the Technical
¢¥¸‡ ‚š¡¸®¸ ‡¨¸¿ œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ, £¸.‚¸.¤¸ÿˆÅ ˆÅú ‚š¡¸®¸÷¸¸ Ÿ¸½¿ Advisory Group (TAG), a Standing Committee
of technical experts has been constituted under
÷¸ˆÅ›¸úˆÅú ¢¨¸©¸½«¸±¸¸½¿ ˆ ú ‡ˆÅ ¬˜¸¸¡¸ú ¬¸¢Ÿ¸¢÷¸ ˆÅ¸ Š¸“›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾
the Chairmanship of CMD, NHB with
¢]¸¬¸Ÿ¸½¿ ž¸¸£÷¸ ¬¸£ˆÅ¸£, (¢¨¸î¸ Ÿ¸¿°¸¸¥¸¡¸, ‡›¸‡¬¸‡¬¸‚¸½, representations from the Government of India,
¬¸ú‡¬¸‚¸½, ªŸ¸ ¤¡¸»£¸½), ž¸¸£÷¸ú¡¸ ¢£]¸¨¸Ä ¤¸ÿˆÅ ÷¸˜¸¸ ¤¸¸]¸¸£ ˆ½Å ‚›¡¸ (Ministry of Finance, NSSO, CSO, Labour
œÏŸ¸º‰¸ ¬¸¿Š¸“›¸¸½¿ ˆ½Å œÏ¢÷¸¢›¸¢š¸ ©¸¸¢Ÿ¸¥¸ í¸½¿Š¸½ A Bureau), RBI and other prominent market
players.
5.3.4 ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ˆÅ¸½ ‚Ô¸÷¸›¸ ˆÅ£›¸¸
5.3.4 Updating of NHB RESIDEX

„œ¸¡¸ºÄÆ÷¸ œÏ¸œ÷¸ ‚›¸ºž¸¨¸ ˆ½Å ‚¸š¸¸£ œ¸£ ¡¸í ¢›¸µ¸Ä¡¸ ¢¥¸¡¸¸ Š¸¡¸¸ í¾ ¢ˆÅ Based on the above experience, it has been
¬¸»\¸ˆÅ¸¿ˆÅ Ÿ¸½¿ \¸£µ¸ ¤¸Ö ‚¸š¸¸£ œ¸£ ‚›¡¸ ¤¸”õ½ ©¸í£¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ decided to expand the coverage of the index to
other major cities in a phased manner and
¢ˆÅ¡¸¸ ]¸¸‡ ‚¸¾£ ]¸¸½ ‚¿÷¸ Ÿ¸½¿ ™½©¸ ˆÅ¸ ‡ˆÅúˆ¼Å÷¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¤¸›¸ ¬¸ˆ½ÅA
finally a composite index for the country.
‚¤¸ ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ˆÅ¸½ £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ‚š¸Ä ¨¸¸¢«¸ÄˆÅ Henceforth, NHB RESIDEX will be updated by
‚¸š¸¸£ œ¸£ ‚Ô¸÷¸›¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ A ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ˆÅ¸½ NHB on half yearly basis.
œ¸¸¡¸¥¸’ ‚š¡¸¡¸›¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸½ Š¸‡ œ¸¸¿\¸ ©¸í£¸½¿ ˆ½Å ¢¥¸‡ ‚›¡¸ Steps have been initiated to update the NHB
踸½÷¸¸½¿ ¬¸½ œÏ¸œ÷¸ ”¸’¸ ¡¸˜¸¸ œÏŸ¸º‰¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ RESIDEX up to December, 2007, for the five
¬¸¿¢¨¸÷¸¢£÷¸ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆ½Å ÷¸í÷¸ ¢ˆÅ¡¸½ Š¸‡ ‚¸¨¸¸¬¸ú¡¸ ˆÅ¸£¸½¤¸¸£ú cities already covered under the Pilot Study,
using other data sources, i.e. housing
Ÿ¸»¥¡¸¸½¿ ‚¸¾£ ›¸½©¸›¸¥¸ ˆÅ¸„¿¢¬¸¥¸ ‚¸ûÅ ‡œ¥¸¸ƒ” ƒÆ›¸¸¢Ÿ¸ˆÅ ¢£¬¸\¸Ä
transaction prices covered under the housing
(‡›¸¬¸ú‡ƒÄ‚¸£), ¬¸½ œÏ¸œ÷¸ ‚¸¿ˆÅ”õ¸½¿ ˆ½Å ‚¸š¸¸£ œ¸£ ¢™¬¸Ÿ¤¸£ loans provided by the prominent housing
2007 ÷¸ˆÅ ‚Ô¸÷¸›¸ ˆÅ£›¸½ ˆÅú ˆÅ¸£Ä¨¸¸ƒÄ ©¸º³ ˆÅ£ ™ú Š¸ƒÄ í¾ A finance companies (HFCs) and data arranged
‡›¸¬¸ú‡ƒÄ‚¸£ ›¸½ ¡¸½ ‚¸¿ˆÅ”õ½ ’¸ƒŸ¬¸ ‚¸ûÅ ƒ¿¢”¡¸¸ ŠÏºœ¸ ˆÅú ‡ˆÅ through the National Council of Applied
Economic Research (NCAER), the prominent
ˆ¿Åœ¸›¸ú Ÿ¸¾¢]¸ˆÅ ¢¤ÏƬ¸ (’¸ƒŸ¬¸ ¢¤¸]¸›¸½¬¸ ¬¸¸¥¡¸»©¸¿¬¸ ¢¥¸.) ¬¸½ œÏ¸œ÷¸
HFCs were requested for supplying the
¢ˆÅ¡¸½ ˜¸½A ÷¸™›¸º¬¸¸£, œÏŸ¸º‰¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ¬¸½ ‚›¸º£¸½š¸ requisite information on data template for price
¢ˆÅ¡¸¸ Š¸¡¸¸ ¢ˆÅ ¨¸½ Ÿ¸»¥¡¸¸½¿ ˆ½Å ¬¸¿ˆÅ¥¸›¸ ˆ½Å ¢¥¸‡ ¨¸¸¿¢Ž÷¸ ‚¸¿ˆÅ”õ½ ¨¸ ‡ˆÅ collection along with scheme for stratified
¤¸½í÷¸£ ¡¸¸½]¸›¸¸ ¬¸¿¤¸¿š¸ú ¬¸»\¸›¸¸ ž¸½]¸½¿ ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ‚¸¨¸¸¬¸ sampling. Further, in order to supplement the
¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ¬¸½ œÏ¸œ÷¸ ‚¸¿ˆÅ”õ¸½¿ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, ¬¸¿™¢ž¸Ä÷¸ data from HFCs, data on housing prices for the
reference period was also arranged through
‚¨¸¢š¸ ˆ½Å ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸ ¬¸¿¤¸¿š¸ú ‚¸¿ˆÅ”õ½ ž¸ú ‡›¸¬¸ú‡ƒÄ‚¸£ ˆ½Å NCAER.
Ÿ¸¸š¡¸Ÿ¸ ¬¸½ œÏ¸œ÷¸ ¢ˆÅ¡¸½ Š¸‡A
Based on the data from the HFCs along with
data arranged by NCAER, NHB RESIDEX was
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ ‡›¸¬¸ú‡ƒÄ‚¸£ ¬¸½ œÏ¸œ÷¸ ”¸’¸ ˆ½Å updated for two years 2006 & 2007. The base
‚¸š¸¸£ œ¸£, ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ™¸½ ¨¸«¸¸½ô 2006 ¨¸ 2007 ˆ½Å ¢¥¸‡ year for NHB RESIDEX has been shifted from
‚Ô¸÷¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ˆ½Å ¢¥¸‡ ‚¸š¸¸£ ¨¸«¸Ä 2001 to 2007 in accordance with the
recommendation made by the TAG. During
÷¸ˆÅ›¸úˆÅú ¬¸¥¸¸íˆÅ¸£ ŠÏºœ¸ ˆÅú ¢¬¸ûŸ¢£©¸ ˆ½Å ‚›¸º¬¸¸£ 2001 ¬¸½
2008, there has been an updation of NHB
¤¸™¥¸ ˆÅ£ 2007 ˆÅ£ ¢™¡¸¸ Š¸¡¸¸ 2008 ˆ½Å ™¸¾£¸›¸, ‡›¸‡\¸¤¸ú RESIDEX covering period from January to June.
£½]¸ú”½Æ¬¸ ˆÅ¸½ ]¸›¸¨¸£ú ¬¸½ ]¸»›¸ ‚¨¸¢š¸ ÷¸ˆÅ ‚Ô¸÷¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ The City wise index and Percentage (%) change
›¸Š¸£-¨¸¸£ ¬¸»\¸ˆÅ¸¿ˆÅ ‚¸¾£ ¢¨¸¢ž¸››¸ ©¸í£¸½¿ Ÿ¸½¿ œÏ¢÷¸©¸÷¸ (%) Ÿ¸½¿ in different cities is as below:
¤¸™¥¸¸¨¸ ›¸ú\¸½ ÷¸¸¢¥¸ˆÅ¸ Ÿ¸½¿ ™©¸¸Ä¡¸¸ Š¸¡¸¸ í¾ À

88
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

›¸Š¸£-¨¸¸£ ¬¸»\¸ˆÅ¸¿ˆÅ
NHB RESIDEX- Citywise
2008 ]¸›¸¨¸£ú-]¸»›¸
©¸í£ Cities 2007 2008 Jan-June
¢™¥¥¸ú Delhi 100 124
¤¸ÿŠ¸¥¸»³ Bengaluru 100 73
Ÿ¸ºŸ¤¸ƒÄ Mumbai 100 112
ˆÅ¸½¥¸ˆÅ¸÷¸¸ Kolkata 100 114
ž¸¸½œ¸¸¥¸ Bhopal 100 139
í¾™£¸¤¸¸™ Hyderabad 100 96
ûÅ£ú™¸¤¸¸™ Faridabad 100 100
œ¸’›¸¸ Patna 100 103
‚ퟸ™¸¤¸¸™ Ahmedabad 100 106
\¸½››¸¾ Chennai 100 104
]¸¡¸œ¸º£ Jaipur 100 119
¥¸‰¸›¸… Lucknow 100 103
œ¸ºµ¸½ Pune 100 101
¬¸»£÷¸ Surat 100 101
ˆÅ¸½¢\\¸ Kochi 100 106

¢¨¸¢ž¸››¸ ©¸í£¸½¿ Ÿ¸½¿ £¸.‚¸.¤¸ÿˆÅ £½œ¸ú”¾Æ¬¸ Ÿ¸½¿ œÏ¢÷¸©¸÷¸ Ÿ¸½¿ œ¸¢£¨¸÷¸Ä›¸

PERCENTAGE CHANGE IN NHB RESIDEX IN DIFFERENT CITIES
2007 ¬¸½ ]¸›¸¨¸£ú-]¸»›¸ 2008
©¸í£ Cities 2007 to 2008 (Jan-June)
¢™¥¥¸ú Delhi 24
¤¸ÿŠ¸¥¸»³ Bengaluru -27
Ÿ¸ºŸ¤¸ƒÄ Mumbai 12
ˆÅ¸½¥¸ˆÅ¸÷¸¸ Kolkata 14
ž¸¸½œ¸¸¥¸ Bhopal 39
í¾™£¸¤¸¸™ Hyderabad -4
ûÅ£ú™¸¤¸¸™ Faridabad 0
œ¸’›¸¸ Patna 3
‚ퟸ™¸¤¸¸™ Ahmedabad 6
\¸½››¸¾ Chennai 4
]¸¡¸œ¸º£ Jaipur 19
¥¸‰¸›¸… Lucknow 3
œ¸ºµ¸½ Pune 1
¬¸»£÷¸ Surat 1
ˆÅ¸½¢\\¸ Kochi 6

89
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
5.4 ž¸¸¨¸ú œ¸¢£™¼©¡¸
5.4.1 ¡¸¸½]¸›¸¸ œ¸˜¸
ƒ¬¸ „Ó½©¡¸ ˆºÅŽ \¸º¢›¸›™¸ ©¸í£¸½¿/›¸Š¸£¸½¿ ˆÅ¸ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ Ÿ¸»¥¡¸
¬¸¿\¸ˆÅ¸¿ˆÅ ÷¸¾¡¸¸£ ˆÅ£›¸¸ í¾ ‚¸¾£ ÷¸™ºœ¸£¸¿÷¸,¿ ƒ¬¸½ ¬¸Ÿ¸¬÷¸ ž¸¸£÷¸ ˆÅ¸
‡ˆÅúˆ¼Å÷¸ ¬¸»\¸ˆÅ¸¿ˆÅ ¤¸›¸¸¡¸¸ ]¸¸‡Š¸¸ ¢]¸¬¸Ÿ¸½¿ ƒ›¸ ©¸í£¸½¿/›¸Š¸£¸½¿ ˆ½Å
¬¸»\¸ˆÅ¸¿ˆÅ Ÿ¸½¿ ‚œ¸½¢®¸÷¸ ¬¸¿©¸¸½š¸›¸ ˆÅ£ˆ½Å „¬¸Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸,
¢]¸¬¸¬¸½ ‚¸¨¸¸¬¸ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ¢¨¸¢ž¸››¸ ¬÷¸£¸½¿ œ¸£ ¬¸¸œ¸½®¸ ‚¬˜¸¸¡¸ú
œ¸¢£¨¸÷¸Ä›¸¸½¿ ˆÅ¸½ ™©¸¸Ä¡¸¸ ]¸¸‡Š¸¸A
¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿, Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ ˆ½Å¨¸¥¸ ‚¸¨¸¸¬¸ú¡¸ ®¸½°¸ ˆÅ¸ íú ÷¸¾¡¸¸£ ]¸¸
£í¸ í¾A í¸¥¸¸¿¢ˆÅ, ¤¸¸™ Ÿ¸½½¿, ƒ¬¸ ¬¸»\¸ˆÅ¸¿ˆÅ ˆÅ¸½ ÷¸¾¡¸¸£ ˆÅ£›¸½ ¬¸½ œÏ¸œ÷¸
‚›¸ºž¸¨¸ ˆ½Å ‚¸š¸¸£ œ¸£ ƒ¬¸½ ¢¨¸¬÷¸¸¢£÷¸ ˆÅ£ˆ½Å ¨¸¸¢µ¸¢]¡¸ˆÅ ¬¸Ÿœ¸¢î¸¡¸¸½¿
‚¸¾£ ž¸»¢Ÿ¸ ˆÅ¸ ‡ˆÅ ‚¥¸Š¸ ¬¸»\¸ˆÅ¸¿ˆÅ ÷¸¾¡¸¸£ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸, ]¸¸½ ž¸»
¬¸Ÿœ¸™¸ ˆÅ¸ ‡ˆÅ ¬¸Ÿ¸½¢ˆÅ÷¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ í¸½Š¸¸A
÷¸ˆÅ›¸úˆÅú ¬¸¥¸¸íˆÅ¸£ ŠÏºœ¸ ›¸½ í½”¸¢›¸ˆÅ ‚¸¾£ ž¸¸¢£÷¸ ‚¸¾¬¸÷¸ ¢¨¸¢š¸¡¸¸½¿ ¬¸½
¤¸›¸¸¡¸½ Š¸‡ ‚¿¢÷¸Ÿ¸ ¬¸»\¸ˆÅ¸¿ˆÅ ˆÅú ]¸¸\¸¿ ˆÅ£›¸½ œ¸£ œ¸¸¡¸¸ ¢ˆÅ ™¸½›¸¸½¿ ˆ½Å
œ¸¢£µ¸¸Ÿ¸ ¬¸Ÿ¸¸›¸ íÿA ¬¸»\¸ˆÅ¸¿¿ˆÅ ˆ½Å ¢¥¸‡ ”¸’¸ „œ¸¥¸¤š¸÷¸¸ ˆÅ¸½ š¡¸¸›¸ Ÿ¸½¿
£‰¸÷¸½ íº‡ ¬¸»\¸ˆÅ¸¿¿ˆÅ ÷¸¾¡¸¸£ ˆÅ£›¸½ ˆÅú ¢¨¸¢š¸ ¬¸º´[õ ‚¸¾£ ‚¸¬¸¸›¸ í¸½›¸ú
\¸¸¢í‡A ÷¸ˆÅ›¸úˆÅú ¬¸¥¸¸íˆÅ¸£ ŠÏºœ¸ ›¸½ ‚¸£¿ž¸ Ÿ¸½¿ ¬¸»\¸ˆÅ¸¿ˆÅ ˆ½Å ¢¥¸‡
ž¸¸¢£÷¸ ‚¸¾¬¸÷¸ ¢¨¸¢š¸ ˆÅ¸½ ‚¢š¸ˆÅ „œ¸¡¸ºÆ÷¸ œ¸¸¡¸¸ í¸¥¸¸¿¢ˆÅ, ‡›¸‡\¸¤¸ú
£½]¸ú”½Æ¬¸ ˆÅ¸½ „œ¸¡¸ºÆ÷¸ ‚¸¾£ ¬¸íú œÏˆ¼Å¢÷¸ ˆÅ¸ ¤¸›¸¸‡ £‰¸›¸½ ˆ½Å ¢¥¸‡,
÷¸ˆÅ›¸úˆÅú ¬¸¥¸¸íˆÅ¸£ ŠÏºœ¸ ›¸½ ¡¸í ž¸ú ¬¸º^¸¸¨¸ ¢™¡¸¸ ¢ˆÅ ‚¸š¸¸£ ‚¨¸¢š¸
‚¸¾£ ¬¸»\¸ˆÅ¸¿ˆÅ ÷¸¾¡¸¸£ ˆÅ£›¸½ ˆÅú ¢¨¸¢š¸¡¸¸½¿ ˆÅú ‚¸¨¸¢š¸ˆÅ ‚¸š¸¸£ œ¸£ ]¸¸¿\¸
ˆÅ£›¸ú \¸¸¢í‡A ÷¸ˆÅ›¸úˆÅú ¬¸¥¸¸íˆÅ¸£ ŠÏºœ¸ ˆÅú ¢¬¸ûŸ¢£©¸ ˆ½Å ‚›¸º¬¸¸£,
£¸.‚¸. ¤¸ÿˆÅ ›¸½ ‡ˆÅ ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ ¬¸¥¸¸íˆÅ¸£ ¬¸¢Ÿ¸¢÷¸,
÷¸ˆÅ›¸úˆÅú ¢¨¸©¸½«¸±¸¸½¿ ˆÅú ‡ˆÅ ¬˜¸¸¡¸ú ¬¸¢Ÿ¸¢÷¸ ˆÅú ¬˜¸¸œ¸›¸¸ ˆÅú ]¸¸½
¬¸»\¸ˆÅ¸¿ˆÅ ˆÅ¸½ ¤¸½í÷¸£ ¤¸›¸¸›¸½ ˆ½Å ¢¥¸‡ £¸.‚¸. ¤¸ÿˆÅ ˆÅ¸ Ÿ¸¸Š¸Ä ™©¸Ä›¸
ˆÅ£½Š¸úA
¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿, ‡›¸‡\¸¤¸ú £½]¸ú”½Æ¬¸ Ÿ¸½¿ œ¸í¥¸½ \¸£µ¸ Ÿ¸½¿ 15 ©¸í£ ©¸¸¢Ÿ¸¥¸
¢ˆÅ¡¸½ Š¸‡, ‚¤¸ „›¸ ‚›¡¸ 35 ›¸Š¸£¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¬÷¸¸¨¸
¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ ]¸í¸¿ ]¸›¸¬¸¿‰¡¸¸ ™¬¸ ¥¸¸‰¸ ¬¸½ ‚¢š¸ˆÅ í¾ ‡›¸‡\¸¤¸ú
£½]¸ú”½Æ¬¸ ˆÅ¸½ „›¸ 63 ©¸í£¸½¿ ÷¸ˆÅ \¸£µ¸ ¤¸Ö ‚¸š¸¸£ œ¸£ ¢¨¸¬÷¸¸£ ™½›¸½
ˆÅ¸ œÏ¬÷¸¸¨¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾, ¢]¸›í½¿ ]¸¨¸¸í£¥¸¸¥¸ ›¸½í³ £¸«’ïú¡¸ ©¸í£ú
›¸¨¸úˆÅ£µ¸ ¢Ÿ¸©¸›¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾, ÷¸¸¢ˆÅ ¨¸í ¬¸íú ‚˜¸¸½ô Ÿ¸½¿
£¸«’ïú¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ œÏ¢÷¸¢›¸¢š¸÷¨¸ ˆÅ£ ¬¸ˆ½ÅA
ƒ¬¸ ‚›¸ºž¸¨¸ ˆ½Å ‚¸š¸¸£ œ¸£, £¸.‚¸.¤¸ÿˆÅ ›¸½ ¤¸¸™ Ÿ¸½¿ ‚¸¨¸¸¬¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿
‡ˆÅ ¢¨¸¬÷¸¼÷¸ ”¸’¸¤¸½¬¸ ÷¸¾¡¸¸£ ˆÅ£›¸½ ˆÅ¸ œÏ¬÷¸¸¨¸ ¢ˆÅ¡¸¸ í¾ ¢]¸¬¸Ÿ¸½¿
¬¸Ÿœ¸¢î¸ Ÿ¸»¥¡¸¸½¿, ž¸»¢Ÿ¸ Ÿ¸»¥¡¸¸½¿ ‚¸¾£ ¬¸¿¬˜¸¸Š¸÷¸ ¢¨¸î¸ ˆÅ¸ ¢¨¸¨¸£µ¸ ©¸¸¢Ÿ¸¥¸
¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ ƒ¬¸ˆ½Å ‚¸š¸¸£ œ¸£ ‚¸¨¸¸¬¸ ¬¸¿¤¸¿¢š¸÷¸ ‚›¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ
¡¸˜¸¸ ¢ˆÅ£¸¡¸¸ ¬¸»\¸ˆÅ¸¿ˆÅ, ž¸»¢Ÿ¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ, ¨¸í›¸ú¡¸÷¸¸ ¬¸¿¤¸¿š¸ú
¬¸»\¸ˆÅ¸¿ˆÅ, ‚¸¨¸¸¬¸ ¢¨¸ˆÅ¸¬¸ ¬¸»\¸ˆÅ¸¿ˆÅ ‚¸¢™ ÷¸¾¡¸¸£ ˆÅ£›¸½ Ÿ¸½¿ ¬¸í¸¡¸÷¸¸
¢Ÿ¸¥¸½Š¸ú
90
Report on Trend and Progress of Housing in India, 2008
5.4 Future Outlook
5.4.1 Way forward
The objective is to develop a residential property
price index for selected cities/towns and
subsequently to develop all India Composite Residex
by suitably combining these city/town level indices
to capture the relative temporal change in the prices
of houses at different levels.
At present, index would be developed only for
residential housing sector. However, at a later stage,
based on experience of constructing this index for a
wider geographical spread, the scope of the index
could be expanded to develop separate indices for
commercial property and land, which could be
combined to arrive at the real estate price index.
TAG had examined the final index arrived at by the
hedonic and weighted average methods and
observed that the results were similar. The
methodology for the index had to be robust and also
simple considering the data limitations for the index.
TAG considered the weighted average method to be
more appropriate for the index at the beginning.
However, to maintain the appropriateness and
representative character of NHB RESIDEX, TAG had
also suggested that the base period and index
methodology should be examined periodically. As
recommended by TAG, NHB has set up NHB
RESIDEX Advisory Committee, a Standing
Committee of technical experts to guide NHB in
refining the index.
At present, NHB RESIDEX covers 15 cities. In the
first phase and it is proposed to cover 35 cities
having million plus population in a phased manner.
The proposal is also to expand NHB RESIDEX to 63
cities, which are covered under the Jawaharlal Nehru
National Urban Renewal Mission, to make it a truly
representing national index, in a phased manner.
Based on this experience, NHB proposes to develop
a comprehensive database on housing in the future
by covering details such as property prices, land
prices and institutional finance. This would enable
launch of a genre of housing related indices such as
rental index, land price index, affordability index,
housing development index etc.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‚š¡¸¸¡¸ 6 - ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ˆÅ¸ œÏž¸¸¨¸

Chapter 6: The Impact of Financial Crisis

6.1 ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ˆÅ¸ „™ÃŠ¸Ÿ¸ 6.1 Origins of the Crisis

6.1.1 The financial crisis often referred to as the “credit

6.1.1 ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ˆÅ¸½ ¬¸¸Ÿ¸¸›¡¸÷¸À "†µ¸ ¬¸¿ˆÅ’" ¡¸¸ "†µ¸ ˆÅú crunch" or "credit crisis", began in July 2007
when a loss of confidence by investors in the
ˆÅŸ¸ú" ˆ½Å ³œ¸ Ÿ¸½½¿ ¬¸¿™¢ž¸Ä÷¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾, ]¸¸½ ]¸º¥¸¸ƒÄ 2007 Ÿ¸½¿ ÷¸¤¸
value of securitized mortgages in the United
©¸º³ íº‚¸ ]¸¤¸ ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ ‚Ÿ¸£úˆÅ¸ Ÿ¸½¿ œÏ¢÷¸ž¸»¢÷¸ˆ¼Å÷¸ ¤¸¿š¸ˆÅ¸½¿ ˆ½Å States resulted in a liquidity crisis. The crisis
Ÿ¸»¥¡¸ Ÿ¸½¿ ¢›¸¨¸½©¸ˆÅ¸½¿ ˆÅ¸ ¢¨¸©¨¸¸¬¸ ¬¸Ÿ¸¸œ÷¸ í¸½ ]¸¸÷¸¸ í¾ ¢]¸¬¸ˆ½Å further deepened due to failure of a considerable
œ¸¢£µ¸¸Ÿ¸ ¬¨¸³œ¸ ›¸ˆÅ™ú ˆÅ¸ ¬¸¿ˆÅ’ í¸½ Š¸¡¸¸A ¡¸í ¬¸¿ˆÅ’ ÷¸¤¸ ‚¸¾£ number of banks, mortgage lenders and
Š¸í£¸ Š¸¡¸¸, ]¸¤¸ ‚›¸½ˆÅ ¤¸ÿˆÅ, ¤¸¿š¸ˆÅ †µ¸™¸÷¸¸ ‚¸¾£ ¤¸úŸ¸¸ ˆ¿Åœ¸¢›¸¡¸¸¿ insurance companies and crash of stock markets
û½Å¥¸ í¸½ Š¸ƒô¿ ‚¸¾£ ¬¸Ÿ¸»\¸½ ¢¨¸©¨¸ Ÿ¸½¿ ¬’¸ÁˆÅ Ÿ¸¸ˆ½ÄÅ’¸½¿ ˆ½Å û½Å¥¸ í¸½›¸½ ¬¸½ world-wide thus causing the period of high
volatility in the global financial market.
¢¬˜¸¢÷¸ ‚¸¾£ ‚¢š¸ˆÅ ¢¤¸Š¸”õ Š¸ƒÄ ¢]¸¬¸ˆ½Å ˆÅ¸£µ¸ ¨¸¾¢©¨¸ˆÅ ¢¨¸î¸
¤¸¸]¸¸£ Ÿ¸½¿ „\\¸ ‚¢¬˜¸£÷¸¸ ˆÅ¸ Ÿ¸¸í¸¾¥¸ ¤¸›¸ Š¸¡¸¸A
6.1.2 The immediate cause of the crisis was the
6.1.2 ƒ¬¸ ¢¨¸î¸ú¡¸ ¬¸¿¿ˆÅ’ ˆÅ¸ ‡ˆÅ ÷¸º£¿÷¸ ˆÅ¸£µ¸ ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ ‚Ÿ¸£úˆÅ¸ Ÿ¸½¿ bursting of housing bubble in the United States
which was at its high in 2005-2006. The suite
‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ž¸¸£ú ¬¸¿ˆÅ’ ‚¸¡¸¸ ]¸¸½ ¨¸«¸Ä 2005-06 Ÿ¸½¿ ‚œ¸›¸½
was followed by high default rates on "subprime"
¬¸¨¸¸½Ä\\¸ ¬÷¸£ œ¸£ ˜¸¸A ƒ¬¸ˆ½Å ¤¸¸™ "¬¸¤¸œÏ¸ƒŸ¸" œ¸£ ž¸¸£ú ¤¸ˆÅ¸¡¸¸ and adjustable rate mortgages. The term
‚¸¾£ ¬¸Ÿ¸¿]¸›¸ú¡¸ ™£ ¤¸¿š¸ˆÅ Ÿ¸½¿ ¢Š¸£¸¨¸’ ‚¸ƒÄA ¬¸¤¸œÏ¸ƒŸ¸ ©¸¤™ „›¸ subprime refers to the credit quality of particular
†¢µ¸¡¸¸½¿ ˆÅú Š¸ºµ¸¨¸î¸¸ ˆÅ¸ ¬¸»\¸ˆÅ í¸½÷¸¸ í¾ ]¸¸½ †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ Ÿ¸½¿ borrowers having weak credit histories and a
ˆÅŸ¸]¸¸½£ í¸½÷¸½ íÿ ‚¸¾£ Ÿ¸º‰¡¸ †¢µ¸¡¸¸½¿ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ƒ›¸ˆ½Å ¬¸¸˜¸ †µ¸ greater risk of loan default than prime
borrowers. An increase in loan incentives such as
¨¸¬¸»¥¸ú ˆÅ¸]¸¸½¢‰¸Ÿ¸ ‚¢š¸ˆÅ í¸½÷¸¸ í¾A †µ¸ ¬¸¿¢¨¸÷¸£µ¸ Ÿ¸½¿ œÏ¸½÷¬¸¸í›¸¸½¿
easy initial terms and a long-term trend of rising
ˆÅú ¨¸¼¢Ö ]¸¾¬¸½ ‚¸¬¸¸›¸ 'kq:vkrh ©¸÷¸½ô ‚¸¾£ ™ú‹¸ÄˆÅ¸¥¸ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸¸½¿ housing prices had encouraged borrowers to go
ˆÅú ¤¸[õ÷¸ú ˆÅúŸ¸÷¸¸½¿ ¬¸½ ‚¸ˆÅ¢«¸Ä÷¸ í¸½ˆÅ£ ¥¸¸½Š¸¸½¿ ›¸½ ‚œ¸›¸ú ¬¸¸Ÿ¸˜¡¸Ä ¬¸½ for difficult mortgages.
‚¢š¸ˆÅ †µ¸ ¢¥¸¡¸½A
6.1.3 During the pre-crisis period, an influx of a
6.1.3 ƒ¬¸ ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ¬¸½ œ¸í¥¸½ ˆÅú ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸, ‚Ÿ¸£úˆÅ¸ Ÿ¸½¿ significant amount of foreign funds in the us
‡¢©¸¡¸¸ ‚¸¾£ ÷¸½¥¸-„÷œ¸¸™ˆÅ ™½©¸¸½¿ Ÿ¸½¿ ÷¸½]¸ú ¬¸½ ¤¸[õ÷¸ú ‚¸¢˜¸ÄˆÅ from fast-growing economies in Asia and oil-
„››¸¢÷¸ ˆ½Å ˆÅ¸£µ¸ ¢¨¸™½©¸ú Ÿ¸ºÍ¸ ˆÅú ž¸¸£ú ‚¸¨¸ˆÅ ™½‰¸ú Š¸ƒÄA ƒ¬¸ producing countries was observed. This inflow of
œÏˆÅ¸£ ¢›¸¢š¸¡¸¸½¿ ˆÅú „œ¸¥¸¤š¸÷¸¸ ˆ½Å ˆÅ¸£µ¸ ‚Ÿ¸£úˆÅ¸ Ÿ¸½¿ ¤¡¸¸]¸ ˆÅú ™£½¿ funds led to the prevalence of very low interest
¤¸íº÷¸ íú ˆÅŸ¸ í¸½ Š¸ƒô ¢]¸¬¸¬¸½ †µ¸ ¥¸½›¸½ ˆÅú ©¸÷¸½ô ‚¸¾£ ‚¸¬¸¸›¸ í¸½ rates in the United States, which further
contributed to easy credit conditions, leading to
Š¸ƒô, ûÅ¥¸¬¨¸³œ¸ ƒ¬¸ ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ ¢¨¸¢ž¸››¸ ¬¸¿¬˜¸¸›¸¸½¿ ¬¸½ †µ¸ the housing bubble. During that period, loans of
¥¸½›¸¸ ‚¸¬¸¸›¸ ˜¸¸ ¢]¸¬¸¬¸½ †µ¸ ‡¨¸¿ ‚¸¨¸¸¬¸ ¤¸º¥¸¤¸º¥¸¸ ¤¸›¸÷¸¸ Š¸¡¸¸ various denominations were easily procurable.
\¸»¿¢ˆÅ ‚¸¨¸¸¬¸ ‚¸¾£ †µ¸ ¬¸¿ˆÅ’ ¤¸›¸¸ £í¸ ‚÷¸À ‡½¬¸½ ‚›¸½ˆÅ ˆÅ¸£µ¸¸½¿ As the housing and credit bubbles started to
¬¸½ ¢¨¸î¸ú¡¸ œÏµ¸¸¥¸ú ˆÅ¸ ¢¨¸¬÷¸¸£ íº‚¸ ‚¸¾£ ¬¸¿¨¸½™›¸©¸ú¥¸÷¸¸ ¤¸[õ÷¸ú build, a series of factors caused the financial
Š¸ƒÄA system to both expand and become increasingly
fragile.

6.1.4 ‚¸¨¸¸¬¸ ‚¸¾£ †µ¸ ¬¸¿ˆÅ’ ˆ½Å ûÅ¥¸¬¨¸³œ¸, ‚¸¨¸¸¬¸ ‚¸¾£ ¤¸¿¿š¸ˆÅ 6.1.4 As a result of the housing and credit booms, the
¬¸¿¤¸¿¢š¸÷¸ ¢¨¸î¸ú¡¸ ˆÅ£¸£ ]¸¾¬¸½ ¤¸¿š¸ˆÅ ¬¸Ÿ¸¢˜¸Ä÷¸ œÏ¢÷¸ž¸»¢÷¸¡¸¸¿ amount of housing and mortgage related
(‡Ÿ¸¤¸ú‡¬¸) ‚¸¾£ ¬¸¿œ¸¸¢©Ä¨¸ˆÅú¡¸ †µ¸ „™¸¢¡¸÷¨¸ (¬¸ú”ú‚¸½) financial agreements viz. mortgage-backed
ˆÅú £¸¢©¸ Ÿ¸½¿ ž¸¸£ú ¨¸¼¢Ö íºƒÄ ƒ›¸ ›¸ƒÄ ¢¨¸î¸ú¡¸ œ¸í¥¸¸½¿ ¬¸½ ¢¨¸©¨¸ ž¸£ ˆ½Å securities (MBS) and collateralized debt

91
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‚¢š¸ˆÅ ¢›¸¨¸½©¸ íº‚¸A Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅúŸ¸÷¸¸½¿ Ÿ¸½¿ ¢Š¸£¸¨¸’ ‚¸›¸½ ¬¸½
‡Ÿ¸¤¸ú‡¬¸ ˆÅú œÏ¢ÇÅ¡¸¸ ˆÅ¸ œ¸¸¥¸›¸ ˆÅ£›¸½ ¨¸¸¥¸½ Ÿ¸º‰¡¸ ¨¸¾¢©¨¸ˆÅ ¢¨¸î¸ú¡¸
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ˆÅ£›¸¸ œ¸”õ¸A ƒ›¸ ›¸ºˆÅ¬¸¸›¸¸½¿ ˆ½Å ˆÅ¸£µ¸ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú †µ¸
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ˆÅú ¤¸[õ÷¸ú Ÿ¸í¸Ÿ¸¸£ú ˆ½Å ˆÅ¸£µ¸ „œ¸ž¸¸½Æ÷¸¸‚¸½¿ ¬¸½ š¸›¸ ˆÅú „œ¸¥¸¤š¸÷¸¸
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6.1.5 fofo/k :i ¬¸½, ‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ ˆÅ¸½ ¤¸[õ¸›¸½ ¨¸¸¥¸½ Ÿ¸º‰¡¸
ˆÅ¸£µ¸ ¢›¸Ÿ›¸¸›¸º¬¸¸£ í¸½ ¬¸ˆÅ÷¸½ íÿ -
6.15 The Various causes for the crises can be
‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ¬¸¿ˆÅ’ (‚¸¨¸¸¬¸ ¤¸º¥¸¤¸º¥¸½) ˆÅú
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†µ¸¸½¿ Ÿ¸½¿ ¤¸”õú £¸¢©¸ û¿Å¬¸ Š¸ƒÄA
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(‡‚¸£‡Ÿ¸) œ¸£ ¢¥¸¡¸¸ Š¸¡¸¸A
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Report on Trend and Progress of Housing in India, 2008
obligations (CDOs) greatly increased. Such
financial innovation led to the greater
investment in the US housing market by
institutions and investors around the world. As
housing prices declined, major global financial
institutions involved with MBS reported
significant losses thus forced them to enter into
foreclosure. These losses impacted the lending
ability of financial institutions significantly. The
ongoing foreclosure epidemic caused resulted in
wealth being sucked away from consumers and
eroded the strength of the US financial market.
Defaults and losses on other loan types also
increased as the crisis expanded from the
housing market to other parts of the economy.
Total loss caused by the crisis goes beyond
trillions of US dollars globally.
outlined as below:-
Growth of the housing bubble: Between
1997 and 2006, the price of the typical American
house increased by more than double.
Easy credit conditions: Lower interest rates
encouraged borrowings. In addition to easy
credit conditions, there was an indication that
both government and competitive pressures
contributed to an increase in the amount of
subprime lending during the years preceding the
crisis.
Sub-prime lending: U.S. Subprime lending
expanded dramatically between 2004 and 2006.
Predatory lending: Predatory lending refers to
the practice of unscrupulous lenders, to enter into
"unsafe" or "unsound" secured loans for
inappropriate purposes. This practice was used
across the US for home refinancing. In such cases,
advertisements are made to provide loans at very
lower rate but the actual interest charged are
higher than the interest paid thus putting the
consumers in the adjustable rate mortgage (ARM).
Deregulation: The regulatory framework were
not adjusted in pace with financial innovations.
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¢¨¸©¨¸ Ÿ¸½¿ ¬¸¤¸¬¸½ š¸›¸ú ‚˜¸Ä¨¡¸¨¸¬˜¸¸ ¨¸¸¥¸¸ Ÿ¸¸›¸¸ ]¸¸÷¸¸ í¾, ž¸ú ©¸½«¸
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93
Report on Trend and Progress of Housing in India, 2008
Increased debt burden or over-leveraging:
During the years preceding the crisis, at US
households and financial institutions became
overleveraged. This increased their vulnerability
to the collapse of the housing bubble.
Financial innovation: The term financial
innovation refers to development of financial
products designed to achieve particular
objectives. Before the crisis, various financial
products viz. adjustable-rate mortgage,
mortgage-backed securities (MBS),
collateralized debt obligations (CDO), credit
default swaps(CDS) hit the US financial market.
The usage of these products expanded
dramatically in the years leading up to the crisis.
Before the market participants could understand
the long term consequences of these financial
innovations, the impact rooted deeply in to the
US financial system.
Commodity bubble: A commodity price bubble
was created following the collapse in the housing
bubble. For example, the price of oil nearly
tripled from early 2007 to 2008.
6.2 Impact on the Developing Countries
6.2.1 It started off as a sub-prime crisis, turned into a
financial crisis and finally took the shape of a full
blown economic crisis spreading across the
world. During the years preceding the crisis, the
developing economies of the world, particularly
those in Asia, made good use of the robust global
economic conditions to strengthen their
economic and financial fundamentals, build up
huge foreign exchange reserves and develop
their banking and financial markets. So, when
the financial crisis erupted during 2007, it was
felt that the emerging and developing markets
would be able to avoid the worst effects of the
crisis. However, the fact remains that countries
like the United States, UK and other West
European countries, being counted among the
wealthiest economies of the world were not
disconnected from the rest of the world including
the developing economies. Developing
economies are in no way decoupled from the
developed world and this is evident from the
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

™½‰¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ Æ¡¸¸½¿¢ˆÅ ¬¸¿ˆÅ’ ¢¨¸ˆÅ¢¬¸÷¸ ™½©¸¸½¿ Ÿ¸½¿ Š¸í£¸ Š¸¡¸¸ impact witnessed in developing countries as the
˜¸¸A crisis intensified in the developed world.

6.2.2 Towards the end of 2007, when the United States

6.2.2 ¨¸«¸Ä 2007 ˆÅú ‚¿¢÷¸Ÿ¸ ‚¨¸¢š¸ Ÿ¸½¿, ]¸¤¸ ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ ‚Ÿ¸£úˆÅ¸ and other developed economies entered into a
‚¸¾£ ‚›¡¸ ¢¨¸ˆÅ¢¬¸÷¸ ‚˜¸Ä ¨¡¸¨¸¬˜¸¸‚¸½¿ Ÿ¸½¿ Ÿ¸¿™ú ˆÅ¸ ™¸¾£ ©¸º³ íº‚¸ recession, the impact of the crisis on the
÷¸¸½ „¬¸ú ˆ½Å ¬¸¸˜¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ „¬¸ ¬¸¿ˆÅ’ ˆÅ¸ œÏž¸¸¨¸ Š¸¿ž¸ú£ developing countries began to intensify. The
equity markets had begun to plunge to new lows
í¸½›¸½ ¥¸Š¸¸A ©¸½¡¸£ ¤¸¸]¸¸£ Ÿ¸¿™ú ¬¸½ ›¡¸»›¸÷¸Ÿ¸ ¬÷¸£ œ¸£ œ¸íº¿\¸ Š¸‡A as FII’s took the “flight to safety”. Trade was
Æ¡¸¸½¿¢ˆÅ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ›¸½ "¬¸º£¢®¸÷¸ Ÿ¸¸Š¸Ä" ˆÅ¸ £¸¬÷¸¸ ‚œ¸›¸¸ adversely impacted as developing economies
¢¥¸¡¸¸ ˜¸¸A ¨¡¸¸œ¸¸£ œ¸£ ¤¸íº÷¸ œÏ¢÷¸ˆ»Å¥¸ œÏž¸¸¨¸ œ¸”õ¸ Æ¡¸¸½¿¢ˆÅ depend to a great extent on exports to the
developed world.
¢¨¸ˆÅ¸¬¸©¸ú¥¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸‡¿ ‚¢š¸ˆÅ¸¿©¸÷¸À ¢¨¸ˆÅ¢¬¸÷¸ ™½©¸¸½¿ ˆÅ¸½
¢ˆÅ¡¸½ Š¸‡ ¢›¸¡¸¸Ä÷¸ œ¸£ íú ¢›¸ž¸Ä£ £í÷¸ú ˜¸ì A 6.2.3 As the crisis intensified during the last quarter of
the calendar year 2008, the effects of the crisis
on asset prices, credit availability, consumer and
6.2.3 \¸»¿¢ˆÅ ¨¸«¸Ä 2008 ˆÅú ‚¿¢÷¸Ÿ¸ ¢÷¸Ÿ¸¸íú ˆ½Å ™¸¾£¸›¸ ¬¸¿ˆÅ’ Š¸¿¿ž¸ú£ í¸½
business confidence resulted in steep decline in
Š¸¡¸¸ ˜¸¸, ‚¸¢¬÷¸ Ÿ¸»¥¡¸¸½¿, †µ¸ „œ¸¥¸¤š¸÷¸¸, „œ¸ž¸¸½Æ÷¸¸ ‚¸¾£ demand and production worldwide including
¨¡¸¸œ¸¸£ ¢¨¸©¨¸¸¬¸ œ¸£ Ÿ¸¿™ú ˆ½Å œÏž¸¸¨¸ ˆ½Å ˆÅ¸£µ¸ ¬¸Ÿ¸»\¸½ ¢¨¸©¨¸ Ÿ¸½¿ emerging markets. To give an indication of the
‚¸¾£ ›¸‡ „ž¸£÷¸½ ¤¸¸]¸¸£¸½¿ ¬¸¢í÷¸ Ÿ¸¸¿Š¸ ‚¸¾£ „÷œ¸¸™›¸ Ÿ¸½¿ ž¸¸£ú worsening impact of the crisis on the developing
¢Š¸£¸¨¸’ ‚¸ƒÄA ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ œ¸£ Ÿ¸¿™ú ˆÅ¸ ¬¸¤¸¬¸½ ž¸¡¸¿ˆÅ£ world, GDP of Asian countries declined
drastically during the last quarter of 2008.
œÏž¸¸¨¸ ˆ½Å ¬¸¿ˆ½Å÷¸ ¬¨¸³œ¸, ‡¢©¸¡¸¸ƒÄ ]¸ú”úœ¸ú ¨¸¼¢Ö Ÿ¸½¿ 2008 ˆÅú
Similar impact was felt in other developing
‚¿¢÷¸Ÿ¸ ¢÷¸Ÿ¸¸íú ˆ½Å ™¸¾£¸›¸ ž¸¸£ú ¢Š¸£¸¨¸’ íºƒÄ A ‡½¬¸½ íú œÏž¸¸¨¸ ¥¸½¢’›¸ economies including those in Latin America and
‚Ÿ¸£úˆÅ¸ ‚¸¾£ œ¸»¨¸úÄ ¡¸»£¸½œ¸ ¬¸¢í÷¸ ‚›¡¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ‚˜¸Ä Eastern Europe.
¨¡¸¨¸¬˜¸¸‚¸½¿ œ¸£ ž¸ú ™½‰¸½ Š¸‡ A
6.2.4 Let us analyze the channels through which
the effects of the financial crisis were
6.2.4 ‚¤¸ „›¸ pSuyksa ˆÅ¸ ¼iz.kkyu½ ¢¨¸©¸¥¸½«¸µ¸ ˆÅ£÷¸½ gSa transmitted across the developing world.
¢]¸›¸ˆ½Å ׸£¸ Ÿ¸¿™ú ˆ½Å œÏž¸¸¨¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ ÷¸ˆÅ a. Banking failures and reduction in domestic
¬¸¿\¸¸¢£÷¸ íº‚¸ A lending

The adverse impact on financial institutions in the

ˆÅ. ¤¸ÿ¢ˆ¿ÅŠ¸ ‚¬¸ûÅ¥¸÷¸¸‡¿ ‚¸¾£ ‹¸£½¥¸» †µ¸ „œ¸¥¸¤š¸÷¸¸ Ÿ¸½¿ ˆÅŸ¸ú developing world was dependent on the extent
to which such institutions were exposed to the
¢¨¸ˆÅ¸¬¸©¸ú¥¸ ¢¨¸©¨¸ Ÿ¸½¿ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ œ¸£ œÏ¢÷¸ˆ»Å¥¸ œÏž¸¸¨¸ ƒ¬¸ ¤¸¸÷¸ “toxic assets”. Many banks in developing
countries have little or no exposure to innovative
œ¸£ ¢›¸ž¸Ä£ ˆÅ£÷¸½ ˜¸½ ¢ˆÅ „›¸ ¬¸¿¬˜¸¸›¸¸½¿ ›¸½ ’’¸¢Æ¬¸ˆÅ ‡¬¸½’’ Ÿ¸½¿ ¢ˆÅ÷¸›¸¸ financial assets like Collateralized Debt
¢›¸¨¸½©¸ ¢ˆÅ¡¸¸ ˜¸¸A ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ ‚¢š¸ˆÅ÷¸£ ¤¸ÿˆÅ¸½½¿ ›¸½ „›¸ Obligations (CDOs) through which the crisis was
›¸¨¸¸½›Ÿ¸½©¸ ¢¨¸î¸ú¡¸ ‚¸¢¬÷¸¡¸¸½¿ ]¸¾¬¸½ ¬¸¿œ¸¸¢©Ä¨¸ˆÅ †µ¸ ™¸¢¡¸÷¨¸ transmitted. In many developing economies like
China and India, the financial sector is largely
(¬¸ú”ú‚¸½), Ÿ¸½¿ ¤¸íº÷¸ ˆÅŸ¸ ¡¸¸ ¢¤¸¥ˆºÅ¥¸ ¢›¸¨¸½©¸ ›¸íì ¢ˆÅ¡¸¸ ˜¸¸ Æ¡¸¸½¿¢ˆÅ government controlled and hence their exposure
¬¸¿ˆÅ’ ƒ›íì ˆ½Å ׸£¸ û¾Å¥¸¸ ˜¸¸A ‚›¸½ˆÅ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ ]¸¾¬¸½ \¸ú›¸ ‚¸¾£ to innovative and risky financial assets is
ž¸¸£÷¸, ¢¨¸î¸ú¡¸ ®¸½°¸ ‚¢š¸ˆÅ¸¿©¸÷¸¸ ¬¸£ˆÅ¸£ ˆ½Å ¢›¸¡¸¿°¸µ¸¸š¸ú›¸ ˜¸¸ ‚¸¾£ curtailed. There is, however, a more serious
indirect threat through declines in stock market
ƒ¬¸ú ˆÅ¸£µ¸ „›¸ ›¸¨¸¸½›Ÿ¸½©¸ ‚¸¾£ ]¸¸½¢‰¸Ÿ¸ œ¸»µ¸Ä ¢¨¸î¸ú¡¸ ‚¸¢¬÷¸¡¸¸½¿ Ÿ¸½¿ prices and housing prices. These reduce the
¢›¸¨¸½©¸ ›¡¸»›¸ ˜¸¸ í¸¥¸¸¿¢ˆÅ, ‡ˆÅ ‚›¡¸ œ¸£¸½®¸ Š¸¿ž¸ú£ ‰¸÷¸£¸ ˜¸¸ ]¸¸½ capital of banks (and of other big firms), which in
¬’¸ÁˆÅ Ÿ¸¸ˆ½ÄÅ’ ‚¸¾£ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅúŸ¸÷¸¸½¿ Ÿ¸½¿ ¢Š¸£¸¨¸’ ¬¸½ ˜¸¸ ƒ¬¸¬¸½ ¤¸ÿˆÅ¸½¿ ˆÅú particular causes problems where they do not
hold sufficient levels of their capital in cash. In
œ¸»¿]¸ú Ÿ¸½¿ ¢Š¸£¸¨¸’ ‚¸ƒÄ (÷¸˜¸¸ ‚›¡¸ ¤¸”õú ûÅŸ¸½ô), ¢¨¸©¸½«¸ ³œ¸ ¬¸½ ‡½¬¸ú such cases it is likely that banks will reduce

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¬¸Ÿ¸¬¡¸¸‡¿ œ¸¾™¸ íºƒô ¢ˆÅ „›¸ˆ½Å œ¸¸¬¸ ›¸ˆÅ™ œ¸»¿]¸ú œ¸¡¸¸Äœ÷¸ Ÿ¸¸°¸¸ Ÿ¸½¿ „œ¸¥¸¤š¸ lending in order to shore up their capital.
›¸íì ˜¸ú ‡½¬¸½ Ÿ¸¸Ÿ¸¥¸¸½¿ Ÿ¸½¿ ¡¸í ¬¸¿ž¸¸¨¸›¸¸ £í÷¸ú í¾ ¢ˆÅ ¤¸ÿˆÅ ‚œ¸›¸ú œ¸»¿]¸ú ˆÅ¸½ Reductions in bank lending will reduce
investment, lower growth and increase
¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡ †µ¸ ¬¸¿¿¢¨¸÷¸£µ¸ Ÿ¸½¿ ˆÅŸ¸ú ˆÅ£½¿Š¸½A ¤¸ÿˆÅ¸½¿ ¬¸½ †µ¸¸½¿ Ÿ¸½¿ ˆÅŸ¸ú unemployment.
í¸½›¸½ ¬¸½ ¢›¸¨¸½©¸ ˆÅŸ¸ í¸½Š¸¸, ¨¸¼¢Ö ˆÅŸ¸ í¸½Š¸ú ‚¸¾£ ¤¸½£¸½]¸Š¸¸£ú ¤¸[õ½Š¸ú A
b. Decline in export earnings

‰¸. ¢›¸¡¸¸Ä÷¸ ¬¸½ ‚¸¡¸ Ÿ¸½¿ ˆÅŸ¸ú Although the impact of the crisis in the developing
economies was less severe in comparison to the
¡¸Ô¸¢œ¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ Ÿ¸¿™ú ˆÅ¸ œÏž¸¸¨¸ ¢¨¸ˆÅ¢¬¸÷¸ ™½©¸¸½¿ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ developed world, the fact remains that a
recession in the developing world will adversely
ˆÅŸ¸ íº‚¸, ¨¸¸¬÷¸¢¨¸ˆÅ÷¸¸ ¡¸í £íú ¢ˆÅ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ¢¨¸©¨¸ Ÿ¸½¿ Ÿ¸¿™ú ˆ½Å
impact growth in the developing countries. The
œÏž¸¸¨¸ ¬¸½ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ ¨¸¼¢Ö œ¸£ œÏ¢÷¸ˆ»Å¥¸ œÏž¸¸¨¸ œ¸”õ÷¸¸ ƒ¬¸ˆÅ¸ reason being that globalization has drastically
ˆÅ¸£µ¸ ¡¸í ˜¸¸ ¢ˆÅ ¨¸¾©¨¸úˆÅ£µ¸ ˆ½Å ˆÅ¸£µ¸ ¢¨¸™½©¸¸½¿ ¬¸½ í¸½›¸½ ¨¸¸¥¸½ ¨¡¸¸œ¸¸£ Ÿ¸½¿ increased trade across national borders. The
¤¸[õ¸½î¸£ú íºƒÄ œ¸”õ›¸½ ¨¸¸¥¸½ œÏž¸¸¨¸ ƒ¬¸ ˆÅ¸£µ¸ Ÿ¸í÷¨¸œ¸»µ¸Ä ˜¸½ ¢ˆÅ impact may be significant, given the fact that
developing countries rely on exports to the
¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸ ‚œ¸›¸ú ‚¸¢˜¸ÄˆÅ „››¸¢÷¸ ˆ½Å ¢¥¸‡ ¢¨¸ˆÅ¢¬¸÷¸ ™½©¸¸½¿ ˆÅ¸½ developed world for their economic growth. The
¢ˆÅ¡¸½ Š¸‡ ¢›¸¡¸¸Ä÷¸ œ¸£ ¢›¸ž¸Ä£ í¸½÷¸½ íÿ ‚›÷¸£¸Ä«’ïú¡¸ Ÿ¸ºÍ¸ ˆÅ¸½«¸ International Monetary Fund (IMF) expects that
(‚¸ƒÄ‡Ÿ¸‡ûÅ) ‚¸©¸¸ ˆÅ£÷¸¸ í¾ ¢ˆÅ ¢¨¸©¨¸ ¨¡¸¸œ¸¸£ ]¸¸½ ¨¸«¸Ä 2006 Ÿ¸½¿ the growth in world trade may decline from 9.4
9.4% ˜¸¸ ¨¸í 2009 Ÿ¸½¿ 2.1% £í ]¸¸‡Š¸¸ ¢¨¸©¨¸ ¨¡¸¸œ¸¸£ Ÿ¸½¿ per cent in 2006 to 2.1 per cent in 2009. The
expected decline in global trade will come
‚›¸ºŸ¸¸¢›¸÷¸ ¢Š¸£¸¨¸’ ¨¸¬÷¸º‚¸½¿ ˆÅú ˆÅúŸ¸÷¸¸½¿ Ÿ¸½¿ ˆÅŸ¸ú, ›¸‡ „ž¸£÷¸½ ¤¸¸]¸¸£¸½¿ through a combination of lower commodity
¬¸½ ¬¸¸Ÿ¸¸›¸ ˆÅú ˆÅŸ¸ Ÿ¸¸¿Š¸ ‚¸¾£ œ¸¡¸Ä’›¸ Ÿ¸½¿ ˆÅŸ¸ú ˆ½Å ³œ¸ Ÿ¸½¿ ™½‰¸ú Š¸ƒÄ prices, reduced demand for goods from the
‚›÷¸£¸Ä«’ïú¡¸ †µ¸, ˆºÅŽ ¬¸úŸ¸¸ ÷¸ˆÅ, ‚¥œ¸ˆÅ¸¥¸ú›¸ †µ¸¸½¿ œ¸£ ¢›¸ž¸Ä£ emerging markets and a decline in tourism.
International credit is, to a certain extent,
ˆÅ£÷¸¸ í¾ ¢¨¸î¸ú¡¸ ¤¸¸]¸¸£¸½¿ Ÿ¸½¿ œÏ\¸¢¥¸÷¸ ›¸ˆÅ¸£¸÷Ÿ¸ˆÅ œÏ¨¸¼¢î¸¡¸¸½¿ ˆ½Å dependent on short term credit. As a result of the
ûÅ¥¸¬¨¸³œ¸, ’ï½” ¢¨¸î¸ ˆ½Å ¤¸ú\¸ ž¸¸£ú ‚¿÷¸£¸¥¸ œ¸¾™¸ í¸½Š¸¸ ¢]¸¬¸ˆ½Å negative sentiments prevailing in the financial
ûÅ¥¸¬¨¸³œ¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸‚¸½¿ Ÿ¸½¿ ¢›¸¡¸¸Ä÷¸ ˆÅú ‹¸’÷¸ú Ÿ¸¸¿Š¸ markets, the trade finance gap can significantly
‚¸¾£ ‹¸’÷¸¸ ¨¡¸¸œ¸¸£ †µ¸ í¸½Š¸¸ A widen leading to reduced export demand and
reduced trade credit in the developing
economies.
Š¸. œ¸»¿]¸ú œÏ¨¸¸í Ÿ¸½¿ ˆÅŸ¸ú
c. Reduction in capital flows

¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ ˆÅ¸½ ©¸½«¸ ¢¨¸©¨¸ ¬¸½ œ¸¿»]¸ú ˆÅ¸ œÏ¨¸¸í ˆÅŸ¸ í¸½ Š¸¡¸¸ ƒ¬¸Ÿ¸½¿ Financial inflows from the rest of the world to
d e ve l o p i n g c o u n t r i e s i n c l u d e o ff i c i a l
¬¸£ˆÅ¸£ú ¢¨¸ˆÅ¸¬¸ ¬¸í¸¡¸÷¸¸ ©¸¸¢Ÿ¸¥¸ í¾ ‚¸¾£ ¤¸íº œ¸®¸ú¡¸ ÷¸˜¸¸ ¢×œ¸®¸ú¡¸
development assistance including multilateral
¬¸í¸¡¸÷¸¸, œ¸»¿]¸ú œÏ¨¸¸í ¨¸ œ¸¸½’ÄûŸ½¢¥¸¡¸¸½ œÏ¨¸¸í (‡ûÅ‚¸ƒÄ‚¸ƒÄ) ÷¸˜¸¸ and bilateral aid, capital flows including portfolio
¢¨¸™½©¸ú œÏ÷¡¸®¸ ¢›¸¨¸½©¸ œÏ¨¸¸í (‡ûÅ”ú‚¸ƒÄ), ¨¡¸¸œ¸¸£ †µ¸ ‚¸¾£ flows (FII) and foreign direct investment flows
¢¨¸™½©¸¸½¿ ¬¸½ ¢¨¸œÏ½«¸µ¸ ˆÅŸ¸ í¸½ Š¸¡¸½ ¨¸¾¢©¨¸ˆÅ ‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ ˆ½Å ™¸¾£¸›¸ ƒ›¸ (FDI), trade credits and remittances from
abroad. All of these could be negatively impacted
¬¸ž¸ú ˆÅ¸ ›¸ˆÅ¸£¸÷Ÿ¸ˆÅ œÏž¸¸¨¸ í¸½ Š¸¡¸¸ ¨¸¾¢©¨¸ˆÅ ¢¨¸î¸ú¡¸ ¤¸¸]¸¸£¸½¿ Ÿ¸½¿ during a global economic crisis. Negative
›¸ˆÅ¸£¸÷Ÿ¸ˆÅ œÏ¨¸¼¢î¸ ˆ½Å ˆÅ¸£µ¸ ž¸¸¨¸ú ¢›¸¨¸½©¸ˆÅ ]¸¸½¢‰¸Ÿ¸ ¬¸½ ”£›¸½ ¥¸Š¸½ sentiments prevailing in the global financial
¢¨¸™½©¸ú ¢›¸¨¸½©¸ˆÅ¸½¿ ׸£¸ ”»¤¸÷¸½ ¬’¸ÁˆÅ ¤¸¸]¸¸£¸½¿ ¬¸½ ‚œ¸›¸ú ¢›¸¨¸½¢©¸÷¸ œ¸»¿]¸ú markets make potential investors risk averse.
ˆÅ¸½ ¢›¸ˆÅ¸¥¸›¸½ ˆ½Å ˆÅ¸£µ¸ ¤¸¸]¸¸£¸½¿ Ÿ¸½¿ œ¸»¿]¸ú ˆÅú ÷¸£¥¸÷¸¸ ˆÅŸ¸ í¸½ Š¸ƒÄ A Foreign investors withdraw their invested funds
resulting in plummeting stock markets and
reduced liquidity in the markets.
‹¸. í¸¢›¸ ¬¸½ „¤¸£›¸½ ˆ½Å ¢¥¸‡ „œ¸¸¡¸
d. Damage Recovery Measures

¢¨¸©¨¸ ¤¸ÿˆÅ ׸£¸ ¢ˆÅ¡¸½ Š¸‡ œ¸»¨¸¸Ä›¸ºŸ¸¸›¸ ˆ½Å ‚›¸º¬¸¸£, ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ According to forecasts made by the World Bank,
the growth among developing countries as a
¨¸¼¢Ö ™£ ‹¸’ ˆÅ£ 4.5% £í ]¸¸‡Š¸ú ‚¸ƒÄ‡Ÿ¸‡ûÅ ˆ½Å œ¸»¨¸¸Ä›¸ºŸ¸¸›¸ ˆ½Å whole will slow down to 4.5 percent. The IMF
‚›¸º¬¸¸£ ¨¸¼¢Ö ™£ ‚¸¾£ ‹¸’ ˆÅ£ 3.3% £í ]¸¸‡Š¸ú ‚›÷¸£¸Ä«’ïú¡¸ ªŸ¸ predictions peg the growth rate further below at
3.3 percent. The International Labour

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¬¸¿Š¸“›¸ (‚¸ƒÄ‡¥¸‚¸½) ˆÅ¸ ‚›¸ºŸ¸¸›¸ ˜¸¸ ¢ˆÅ ƒ¬¸ ‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ ˆ½Å Organization (ILO) predicts that unemployment
ûÅ¥¸¬¨¸³œ¸ œ¸»£½ ¢¨¸©¨¸ Ÿ¸½¿ ¥¸Š¸ž¸Š¸ 20 ¢Ÿ¸¢¥¸¡¸›¸ ¤¸½£¸½]¸Š¸¸£ í¸½ ]¸¸‡¿Š¸½ could rise by 20 million across the world as a
result of the crisis. In order to avoid or limit the
‡½¬¸½ ‚¸¢˜¸ÄˆÅ ™º«œÏž¸¸¨¸¸½¿ ˆÅ¸½ ¤¸\¸›¸½ ¡¸¸ ¬¸ú¢Ÿ¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, impact of such economic adversities,
¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ ˆÅú ¬¸£ˆÅ¸£¸½¿ ׸£¸ ›¸ ˆ½Å¨¸¥¸ ©¸ú‹Ï ‚¸¾£ „¢\¸÷¸ governments in developing countries not only
need to pursue prompt and appropriate policies
›¸ú¢÷¸¡¸¸½¿ ˆÅ¸ ‚›¸ºœ¸¸¥¸›¸ ˆÅ£›¸½ ˆÅú ]¸³£÷¸ í¾ ¤¸¢¥ˆÅ ‚›÷¸£¸Ä«’ïú¡¸ ¬¸Ÿ¸º™¸¡¸ but there is also need for concerted action with
ˆ½Å ¬¸¸˜¸ ¢Ÿ¸¥¸ˆÅ£ ˆÅ¸£Ä¨¸¸ƒÄ ˆÅ£›¸½ ˆÅú ž¸ú ]¸³£÷¸ í¾ \¸»¿¢ˆÅ ¢¨¸¢ž¸››¸ ™½©¸¸½¿ the international community. As countries differ
ˆ½Å [¸¿\¸½ ‚¸¾£ ‚ŠÏ÷¸¸‚¸½¿ Ÿ¸½¿ ‚¿÷¸£ í¸½÷¸¸ í¾, ‚÷¸À ¡¸í ¬¸º£¢®¸÷¸ ³œ¸ ¬¸½ from each other in terms of their structure and
priorities, it can be safely said that there is no
ˆÅí¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ ¢ˆÅ ¬¸ž¸ú ˆ½Å ¢¥¸‡ ˆÅ¸½ƒÄ ‡ˆÅ í¥¸ „œ¸¡¸ºÆ÷¸ ›¸íì í¸½Š¸¸ A “one size fits all” solution. Some emerging
ˆºÅŽ „ž¸£÷¸½ ™½©¸¸½¿ ˆÅ¸½ ‚¢š¸ˆÅ ›¸ºˆÅ¬¸¸›¸ í¸½Š¸¸ ]¸¾¬¸½ ]¸¸½ ‚Ÿ¸£úˆÅ¸ ¡¸¸ Ÿ¸¿™ú nations will suffer more viz. those heavily
dependent on trade with the United States and
ˆÅ¸ ¬¸¸Ÿ¸›¸¸ ˆÅ£ £í½ ‚›¡¸ ¢¨¸ˆÅ¢¬¸÷¸ ™½©¸¸½¿, ©¸½«¸ ž¸ºŠ¸÷¸¸›¸¸½¿ ˆÅ¸½ ˆÅ£›¸½ Ÿ¸½¿ other developed nations facing recession, those
ˆÅ¢“›¸¸ƒÄ ‚›¸ºž¸¨¸ ˆÅ£ £í½½ íÿ ‚¸¾£ Ÿ¸ºÍ¸ ˆÅú ¤¸íº÷¸ ‚¢š¸ˆÅ ˆÅŸ¸ú í¾ ÷¸˜¸¸ with balance of payments difficulties and
]¸í¸¿ ¢¨¸î¸ú¡¸ ¨¸ ¤¸ÿ¢ˆ¿ÅŠ¸ ®¸½°¸ ˆÅ¸ ¢¨¸¢›¸¡¸Ÿ¸›¸ ‰¸£¸¤¸ í¾, ˆ½Å ¬¸¸˜¸ ¨¡¸¸œ¸¸£ significant fiscal deficits and those with poorly
regulated financial and banking sectors. One
œ¸£ ¤¸íº÷¸ ‚¢š¸ˆÅ ¢›¸ž¸Ä£ íÿ¿ ƒ¬¸ œ¸¢£¢¬˜¸¢÷¸ ˆÅ¸ ‡ˆÅ ¬¸ˆÅ¸£¸÷Ÿ¸ˆÅ œ¸®¸ positive aspect of the situation is that the crisis
¡¸í í¾ ¢ˆÅ ƒ¬¸ ‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ ¬¸½ ‰¸£¸¤¸ Ÿ¸¾ÇŸ½-ƒÆ›¸¸¢Ÿ¸ˆÅ œÏ¤¸¿š¸›¸ ˆÅú will expose economies with poor macro-
economic management and weak financial
‚˜¸Ä ¨¡¸¨¸¬˜¸¸ ‚¸¾£ ˆÅŸ¸]¸¸½£ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ÷¸˜¸¸ ‚¢ž¸©¸¸¬¸›¸ „œ¸¸¡¸¸½¿ institutions and governance measures, thereby
ˆÅ¸ œ¸÷¸¸ ¥¸Š¸ ]¸¸‡Š¸¸ ‚¸¾£ ÷¸¤¸ „›í½¿ ¬¸¿ˆÅ’ ¬¸½ ˆºÅŽ ¬¸ú‰¸›¸½ ‚¸¾£ giving it an opportunity to learn from the crisis
and make amends.
¬¸ºš¸¸£¸÷Ÿ¸ˆÅ „œ¸¸¡¸ ˆÅ£›¸½ ˆÅ¸ ‚¨¸¬¸£ ¢Ÿ¸¥¸½Š¸¸ A
Governments across developing nations have
¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ ˆÅú ¬¸£ˆÅ¸£¸½¿ ›¸½ ƒ¬¸ ¬¸¿ˆÅ’ ¬¸½ ¢›¸œ¸’›¸½ ˆ½Å ¢¥¸‡ employed a combination of short term and long
term measures to tackle the adversities. Short
‚¥œ¸ˆÅ¸¥¸ú›¸ ‚¸¾£ ™ú‹¸ÄˆÅ¸¥¸ú›¸ ™¸½›¸¸½¿ „œ¸¸¡¸¸½¿ ˆÅ¸ œÏ¡¸¸½Š¸ ¢ˆÅ¡¸¸
term policy measures include efforts to ensure
‚¥œ¸ˆÅ¸¥¸ú›¸ ›¸ú¢÷¸Š¸÷¸ „œ¸¸¡¸¸½¿ Ÿ¸½¿ ¡¸í ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸¸ ©¸¸¢Ÿ¸¥¸ ˜¸¸ ¢ˆÅ that the impact of the crisis is curtailed, that
Ÿ¸¿™ú ˆÅú œÏž¸¸¨¸ ˆÅ¸½ ˆÅŸ¸ ¢ˆÅ¡¸¸ ]¸¸‡, ¢¨¸î¸ú¡¸ œÏµ¸¸¢¥¸¡¸¸½¿ Ÿ¸½¿ ¢¨¸©¨¸¸¬¸ œ¸¾™¸ confidence is restored in the financial systems
and the impact on the real economy is
¢ˆÅ¡¸¸ ]¸¸¡¸½ ‚¸¾£ ¨¸¸¬÷¸¢¨¸ˆÅ ‚˜¸Ä ¨¡¸¨¸¬˜¸¸ œ¸£ œÏž¸¸¨¸¸½¿ ˆÅ¸½ ˆÅŸ¸ ¬¸½ ˆÅŸ¸ minimized. Long term measures envisage the
¢ˆÅ¡¸¸ ]¸¸‡ ™ú‹¸ÄˆÅ¸¥¸ú›¸ „œ¸¸¡¸¸½¿ Ÿ¸½¿ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ ¬¸£ˆÅ¸£¸½¿ ׸£¸ deployment of monetary and fiscal policies by
the governments in developing countries so as to
Ÿ¸¸¾¢ÍˆÅ ‚¸¾£ ¢¨¸î¸ú¡¸ ›¸ú¢÷¸¡¸¸½¿ ˆÅ¸½ ¥¸¸Š¸½» ˆÅ£›¸¸ ©¸¸¢Ÿ¸¥¸ ˜¸¸ ¢]¸¬¸¬¸½ cushion the fall in external demand and decline
¢¨¸™½©¸¸½¿ ¬¸½ ˆÅŸ¸ íºƒÄ Ÿ¸¸¿Š¸ ‚¸¾£ †µ¸ „œ¸¥¸¤š¸÷¸¸ Ÿ¸½¿ ˆÅŸ¸ú ¬¸½ íº‡ ›¸ºˆÅ¬¸¸›¸ in credit flows. Such measures have already
¬¸½ £¸í÷¸ ™ú ]¸¸¬¸ˆ½Å ƒ¬¸ œÏˆÅ¸£ ¬¸½ ¢ˆÅ¡¸½ Š¸‡ „œ¸¸¡¸ ‚›¸½ˆÅ ™½©¸¸½¿ ]¸¾¬¸½ been witnessed in countries like China, India and
South Korea, where governments have
\¸ú›¸, ž¸¸£÷¸ ‚¸¾£ ™¢®¸µ¸ ˆÅ¸½¢£¡¸¸ Ÿ¸½¿ ™½‰¸½ Š¸‡, ]¸í¸¿ ¬¸£ˆÅ¸£¸½¿ ›¸½ ‚›¸½ˆÅ announced significant stimulus packages so as
Ÿ¸í÷¨¸œ¸»µ¸Ä ¬¸ºš¸¸£¸÷Ÿ¸ˆÅ „œ¸¸¡¸ ¢ˆÅ¡¸½ ÷¸¸¢ˆÅ „÷œ¸››¸ Ÿ¸¿™ú ˆÅú ÷¸ú¨Ï÷¸¸ ˆÅ¸½ to negate the severity of the crisis.
ˆÅŸ¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆ½Å A The financial crisis has certainly impacted the
developing world in an adverse way, but a lot of
countries in the developing world have managed
¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ˆÅ¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ¢¨¸©¨¸ œ¸£ ¢›¸¢©\¸÷¸ ³œ¸ ¬¸½ œÏ¢÷¸ˆ»Å¥¸
to get out of the doldrums and resumed their
œÏž¸¸¨¸ œ¸”õ¸, ¢ˆ¿Å÷¸º ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ¢¨¸©¨¸ Ÿ¸½¿ ‚›¸½ˆÅ ™½©¸¸½¿ ›¸½ „¬¸ ¬¸¿ˆÅ’ ¬¸½ growth trajectory. Many developing nations have
¢›¸ˆÅ¥¸›¸½ ˆÅú ¨¡¸¨¸¬˜¸¸ ˆÅ£¥¸ú ‚¸¾£ ‚œ¸›¸ú ¢¨¸ˆÅ¸¬¸ ™£ œ¸º›¸À ¤¸›¸¸¥¸ú developed a certain degree of resilience as a
result of their experience gained during the
‚›¸½ˆÅ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ £¸«’︽¿ ›¸½ 1998 Ÿ¸½¿ œ¸»¨¸úÄ ‡¢©¸¡¸¸ Ÿ¸½¿ ‚¸‡ ¬¸¿ˆÅ’ ˆ½Å Southeast Asian Crisis in 1998. The largest
™¸¾£¸›¸ œÏ¸œ÷¸ ‚›¸ºž¸¨¸¸½¿ ˆ½Å ‚¸š¸¸£ œ¸£ ˆºÅŽ ¬¸úŸ¸¸ ÷¸ˆÅ ¥¸\¸ú¥¸¸œ¸›¸ ˆÅ£ economies among the emerging markets, those
of China and India will continue on their growth
¢¥¸¡¸¸ ˜¸¸ „ž¸£÷¸½ ¤¸¸]¸¸£¸½¿ Ÿ¸½¿ ¬¸¤¸¬¸½ ¤¸”õú ‚˜¸Ä¨¡¸¨¸¬˜¸¸‡¿, ]¸¾¬¸½ \¸ú›¸ trajectory, although at more modest rates. Their
‚¸¾£ ž¸¸£÷¸ ˆÅú ¨¸¼¢Ö ™£ ¡¸˜¸¸¨¸÷¸ ¤¸›¸ú £íú, í¸¥¸¸¿¢ˆÅ Š¸¢÷¸ ˆÅŸ¸ í¸½ Š¸ƒÄ growth will spur growth in other developing
„›¸ˆÅú ¨¸¼¢Ö ¬¸½ ‚›¡¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ ‚¸¾£ ¨¡¸¸œ¸¸£ ¬¸¸^¸ú™¸£¸½¿ Ÿ¸½¿ nations and trade partners.

¨¸¼¢Ö ˆÅú œÏ½£µ¸¸ ¢Ÿ¸¥¸½Š¸ú A

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6.3 ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ®¸½°¸ œ¸£ œÏž¸¸¨¸ 6.3 Impact on the Housing Sector in
India
6.3.1 ‚¸¨¸¸¬¸ ®¸½°¸ ›¸½ ž¸¸£÷¸ Ÿ¸½¿ ž¸» ¬¸Ÿœ¸™¸ „Ô¸¸½Š¸ ˆ½Å Ÿ¸]¸¤¸»÷¸ ¢¨¸ˆÅ¸¬¸ Ÿ¸½¿ 6.3.1 The housing sector has contributed significantly
Ÿ¸í÷¨¸œ¸»µ¸Ä ¡¸¸½Š¸™¸›¸ ¢ˆÅ¡¸¸ ¤¸”õ½ ˆÅ¸£œ¸¸½£½’ ‹¸£¸›¸¸½¿ ‚¸¾£ ¤¸íº- to the robust development of the real estate
£¸«’ïú¡¸ œ¸µ¸š¸¸£ˆÅ¸½¿ ˆ½Å œÏ¨¸½©¸ ˆÅ£›¸½ ¬¸½, ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ¬¸½ industry in India. With the entry of major
‚œ¸½®¸¸ˆ¼Å÷¸ ¬¸£¥¸ ¢¨¸î¸ ¢¨¸ˆÅ¥œ¸¸½¿ ÷¸˜¸¸ ¬¸£ˆÅ¸£ú ¬¸í¸¡¸÷¸¸ ˆ½Å ¬¸¸˜¸, corporate houses and multi-national players,
relatively easy finance options from financial
ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ¢œ¸Ž¥¸½ ˆºÅŽ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸ ¤¸íº÷¸ ‚¢š¸ˆÅ
institutions and government support, the
¨¸¼¢Ö ™½‰¸ú Š¸ƒÄ †µ¸ ˆÅú ¬¸£¥¸ „œ¸¥¸¤š¸÷¸¸ ‚¸¾£ Ÿ¸]¸¤¸»÷¸ ‚¸¢˜¸ÄˆÅ housing sector in India has witnessed buoyant
¢›¸«œ¸¸™ˆÅ÷¸¸ ˆ½Å ˆÅ¸£µ¸ ™½©¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¬¸¿¤¸¿š¸ú ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸¸½¿ Ÿ¸½¿ growth over the last few years. Easy credit
„Ž¸¥¸ ‚¸¡¸¸ ¢ˆ¿Å÷¸º ‚¸¨¸¸¬¸ ¤¸¸]¸¸£¸½¿ Ÿ¸½¿ „Ž¸¥¸ ˆ½Å ¬¸¸˜¸ íú ¬¸Ø¸ availability and robust economic performance
©¸º³ í¸½ Š¸¡¸¸ Æ¡¸¸½¿¢ˆÅ ƒ¬¸Ÿ¸½¿ ž¸¸£ú Ÿ¸º›¸¸û½Å ¬¸½ ‚¸ˆÅ¢«¸Ä÷¸ í¸½ˆÅ£ œÏ¸ƒ¨¸½’ caused a spurt in housing activities within the
¢¨¸ˆÅ¸¬¸ˆÅ ‚¸ Š¸‡ ˜¸½ ÷¸¤¸ ÷¸ˆÅ, ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ›¸½ ž¸¸£÷¸ú¡¸ country. But the boom in the housing markets
‚˜¸Ä¨¡¸¨¸¬˜¸¸ œ¸£ ž¸ú š¸ú£½-š¸ú£½ ¢ˆ¿Å÷¸º œ¸ÆˆÅ¸ œÏž¸¸¨¸ ”¸¥¸›¸¸ ©¸º³ started to take a speculative turn as private
developers craved for higher premiums. By then,
ˆÅ£ ¢™¡¸¸ ˜¸¸ A
the financial crisis had slowly but steadily started
6.3.2 \¸»¿¢ˆÅ ¬¸¿¬˜¸¸Š¸÷¸ ¢›¸¨¸½©¸ˆÅ¸½¿ ›¸½ ž¸¸£÷¸ú¡¸ ¤¸¸]¸¸£¸½¿ ¬¸½ ¢›¸¢š¸¡¸¸¿ to make its impact felt in the Indian economy.
¢›¸ˆÅ¸¥¸›¸¸ ©¸º³ ˆÅ£ ¢™¡¸¸ ˜¸¸, ‚÷¸À ÷¸£¥¸÷¸¸ ¢\¸¿÷¸¸ ˆÅ¸ ¢¨¸«¸¡¸ ¤¸›¸¸ 6.3.2 As institutional investors started to pull out funds
Š¸¡¸¸ ˜¸¸ A \¸»¿¢ˆÅ „œ¸ž¸¸½Æ÷¸¸‚¸½¿ ‚¸¾£ ¤¡¸¸œ¸¸£ ˆÅ¸ ¢¨¸©¨¸¸¬¸ ¢Š¸£ Š¸¡¸¸ from Indian markets, liquidity became a cause of
˜¸¸, ‚÷¸À ¤¸ÿˆÅ †µ¸ ™½›¸¸ ›¸íì \¸¸í÷¸½ ˜¸½ ‚¸¾£ ŠÏ¸íˆÅ †µ¸ ¥¸½›¸½ ˆ½Å concern. As consumer and business confidence
dipped, banks were reluctant to lend and
œÏ¢÷¸ ‚¢›¸\ŽºˆÅ ˜¸½ A ÷¸£¥¸÷¸¸ ˆÅŸ¸ í¸½›¸½ ‚¸¾£ ›¸ˆÅ¸£¸÷Ÿ¸ˆÅ
consumers were reluctant to borrow. Owing to
¨¡¸¸œ¸¸¢£ˆÅ œÏ¨¸¼¢î¸¡¸¸½¿ ˆ½Å ˆÅ¸£µ¸, Š¸¼í †µ¸¸½¿ Ÿ¸½¿ ¨¸¼¢Ö í¸½›¸½ ¥¸Š¸ú shrinking liquidity and negative business
Ÿ¸¸½’½÷¸¸¾£ ¬¸½, ‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£ ¤¡¸¸]¸ ™£¸½¿ Ÿ¸½¿ ¢œ¸Ž¥¸½ ˆºÅŽ ¨¸«¸¸½ô ˆ½Å sentiments, home loan rates went northwards.
In general, the interest rates on housing loans
™¸¾£¸›¸ ¤¸íº÷¸ ¨¸¼¢Ö íºƒÄ ¤¡¸¸]¸ ™£ 7.5 œÏ¢÷¸©¸÷¸ ¬¸½ ¤¸[õ ˆÅ£
have gone up significantly over the past few
10 œÏ¢÷¸©¸÷¸ œ¸£ ÷¸˜¸¸ „¬¸¬¸½ ž¸ú …œ¸£ ]¸¸ œ¸íº¿\¸ú, ]¸»›¸ 2008 Ÿ¸½¿ years. From around 7.5 per cent, the rates have
¡¸í 12.5 œÏ¢÷¸©¸÷¸ ¬¸½ ž¸ú ‚¢š¸ˆÅ í¸½ Š¸ƒÄ A gone up to less than 10 per cent and from there;
it has gone up to more than 12.5 per cent in June
2008.
6.3.3 ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ¨¸¼¢Ö ™£ 2007-08 ˆ½Å ™¸¾£¸›¸ ž¸¸£ú ¢Š¸£¸¨¸’ ‚¸ƒÄ
¢]¸¬¸ˆ½Å ‚›¸½ˆÅ ˆÅ¸£µ¸ ˜¸½ ]¸¾¬¸½ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆÅú …¿\¸ú ˆÅúŸ¸÷¸½¿, ˆÅŸ¸ 6.3.3 The housing sector growth had slowed down
drastically during 2007-08 due to a combination
í¸½÷¸ú ÷¸£¥¸÷¸¸, …¿\¸ú ¤¡¸¸]¸ ™£ ‚¸¾£ ›¸ˆÅ¸£¸÷Ÿ¸ˆÅ/]¸¸½¢‰¸Ÿ¸ ¬¸½ ”£¸ of factors like high property prices, shrinking
ǽÅ÷¸¸ ƒ¬¸ ¨¸¾¢©¨¸ˆÅ ¢¨¸î¸ú¡¸ ¬¸¿ˆÅ’ ˆ½Å ׸£¸ ÷¸£¥¸÷¸¸ ˆÅú „œ¸¥¸¤š¸÷¸¸ liquidity, high interest rates and negative/risk-
ˆÅŸ¸ í¸½›¸½ ¬¸½ ‹¸£¸½¿ ˆ½Å ǽÅ÷¸¸Š¸µ¸ Ÿ¸ˆÅ¸›¸ ‰¸£ú™›¸½ ¨¸ ¢›¸¨¸½©¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ averse buyer sentiment. The ’liquidity crunch’,
perpetrated by this global financial crisis, has
¬¸÷¸ˆÄÅ í¸½ Š¸‡ A made homebuyers increasingly conservative and
watchful with respect to their purchase and
6.3.4 ’¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸’ ©¸¤™ ‚¸¨¸¸¬¸ ¬¸¿¤¸¿¢š¸÷¸ ¬¸ž¸ú Š¸¢÷¸¢¨¸¢š¸¡¸¸½¿ Ÿ¸½¿ investment behaviour.
›¸¡¸¸ œÏ¡¸¸½Š¸ í¸½›¸½ ¥¸Š¸¸ ˜¸¸ A ¢¨¸ˆÅ¸¬¸ˆÅ¸½¿ ‚¸¾£ ‹¸£¸½¿ ˆ½Å ǽÅ÷¸¸‚¸½¿ ›¸½ 6.3.4 ’Affordable housing’ became the new buzzword
‚œ¸›¸ú ‚œ¸½®¸¸‚¸½¿ œ¸£ œ¸º›¸¢¨¸Ä\¸¸£ ¢ˆÅ¡¸¸ ‚¸¾£ œÏú¢Ÿ¸¡¸Ÿ¸ ®¸½°¸ ˆÅú across all housing related circles. Both,
developers and homebuyers have revised their
‚œ¸½®¸¸ ‚¢š¸ˆÅ ‚\Ž½ ¤¸¢[õ¡¸¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ‚¸½£ š¡¸¸›¸ ™½›¸½ ¥¸Š¸½
expectations and switched their focus from
Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú ˆÅúŸ¸÷¸¸½¿ Ÿ¸½¿ ¢Š¸£¸¨¸’ ‚¸ƒÄ, ¢ˆ¿Å÷¸º ¡¸í ˆÅŸ¸ú ¢¨¸ˆÅ¸¬¸ˆÅ¸½¿ ›¸½ premium segments to more compact, no frills
‚œ¸›¸½ ¥¸¸ž¸ Ÿ¸½¿ ˆÅ’¸¾÷¸ú ˆÅ£ˆ½Å ˆÅú ™½©¸ ˆÅú ¥¸Š¸ž¸Š¸ 30 œÏ¢÷¸©¸÷¸ housing. There has been some downward

97
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]¸›¸¬¸¿‰¡¸¸ ©¸í£ú ®¸½°¸¸½¿ Ÿ¸½¿ ¢›¸¨¸¸¬¸ ˆÅ£÷¸ú í¾A ©¸í£ú ®¸½°¸¸½¿ Ÿ¸½¿ ŠÏ¸Ÿ¸úµ¸ revision as far as the prices are concerned, but
®¸½°¸¸½¿ ¬¸½ ¤¸”õú Ÿ¸¸°¸¸ Ÿ¸½¿ ¥¸¸½Š¸¸½¿ ˆ½Å œ¸¥¸¸¡¸›¸ ¬¸½ ©¸í£ú ž¸»¢Ÿ¸ œ¸£ ™¤¸¸¨¸ this revision is mainly with respect to the margin
which developers charge. About 30% of the
¤¸[õ›¸½ ¥¸Š¸¸ ƒ¬¸¬¸½ ¡¸í ¬¸º¢›¸¢©\¸÷¸ í¸½÷¸¸ í¾ ¢ˆÅ ¬¸£ˆÅ¸£ ׸£¸ Ÿ¸»¥¡¸¸½¿
country’s population inhabits the urban
ˆÅ¸½ ˆÅŸ¸ ˆÅ£›¸½ ‚¸¾£ Ÿ¸¸¾¢ÍˆÅ „œ¸¸¡¸ ˆÅ£›¸½ ˆ½Å ¤¸¸¨¸]¸»™ ž¸ú Ÿ¸ˆÅ¸›¸¸½¿ ˆÅú landscape. With a rapidly growing population
ˆÅúŸ¸÷¸½¿ ¤¸[õ÷¸ú £í½¿Š¸ú A and a steady influx of population into the urban
centres from the rural areas, there will be a
sustained pressure on urban land. This will
6.3.5 ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ¨¸«¸Ä 2010 ˆÅúÅ ™»¬¸£ú ŽŸ¸¸íú Ÿ¸½¿ ¨¸¼¢Ö í¸½›¸½
ensure that housing prices will continue to
ˆÅú ¬¸¿ž¸¸¨¸›¸¸ í¾ ]¸¤¸ ÷¸ˆÅ ¨¸¾¢©¨¸ˆÅ ‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ ˆ½Å œ¸¢£¨¸÷¸úÄ remain high despite the price correction and
œÏž¸¸¨¸ ˆÅŸ¸ í¸½›¸½ ¥¸Š¸ ]¸¸‡¿Š¸½ „Ô¸¸½Š¸¸½¿ ˆ½Å ‚›¸ºŸ¸¸›¸ ˆ½Å ‚›¸º¬¸¸£, ¤¸”õú monetary measures taken by the government.

‚¸¨¸¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‡¿ ÷¸˜¸¸ ’¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸’ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ¬¸½
‚¸Š¸¸Ÿ¸ú œ¸¸¿\¸ ¨¸«¸¸½ô Ÿ¸½¿ ™½©¸ ˆÅú ˆºÅ¥¸ ‚¸¨¸¸¬¸ Ÿ¸¸¿Š¸ ˆÅ¸ ¥¸Š¸ž¸Š¸ 80
œÏ¢÷¸©¸÷¸ ¢í¬¬¸¸ œ¸»£¸ í¸½ ]¸¸‡Š¸¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¤¸¸]¸¸£ ¬¸½ ¨¸«¸Ä
2013 ÷¸ˆÅ ¥¸Š¸ž¸Š¸ 150 ¢¤¸¢¥¸¡¸›¸ ‚Ÿ¸£úˆÅú ”¸¥¸£ ˆÅ¸ £¸]¸¬¨¸
œÏ¸œ÷¸ í¸½Š¸¸ A
6.4 ž¸¸¨¸ú ‚˜¸¸Äœ¸¢î¸ (‚¸©¸¡¸)
6.3.5 The Indian housing sector is expected to pick up
pace during the latter half of the year 2010 when
the after-effects of the global economic crisis
start to fade. As per industry estimates, large
scale housing projects including “affordable
housing” projects will account for about 80% of
the total housing demand in the country over the
next five years and housing market will generate
total revenues of about US$ 150 billion by 2013.

6.4 Future Implications

6.4.1 ©¸í£ú ž¸»¢Ÿ¸ œ¸£ ¤¸[õ÷¸½ ™¤¸¸¨¸ ˆ½Å ˆÅ¸£µ¸, ¬¸£ˆÅ¸£ ©¸í£ú œÏ¡¸¸½Š¸ ˆ½Å ¢¥¸‡ 6.4.1 Due to the increasing pressure on urban land, the
‚¢š¸ˆÅ ¬¸½ ‚¢š¸ˆÅ ž¸»¢Ÿ¸ ˆÅ¸ ‚¢š¸ŠÏíµ¸ ˆÅ£½Š¸ú ƒ¬¸Ÿ¸½¿ ¬¸º¢¨¸š¸¸ í½÷¸º, ž¸»¢Ÿ¸ government will have to acquire more and more
‚¢š¸ŠÏíµ¸ ‚¸¾£ œÏ¡¸¸½Š¸ œ¸¢£¨¸÷¸Ä›¸ ¬¸¿¤¸¿š¸ú ˆÅ¸›¸»›¸¸½¿ ˆÅ¸½ „™¸£ ¤¸›¸¸›¸½ ÷¸˜¸¸ land for urban usage. For facilitating the same,
the land acquisition and conversion laws need to
¬¸£¥¸ ˆÅ£›¸½ ˆÅú t:jr í¾ A ¨¸÷¸ÄŸ¸¸›¸ œ¸¢£¢¬˜¸¢÷¸¡¸¸½¿ ˆ½Å œ¸¢£œÏ½®¡¸ Ÿ¸½¿, liberalized and simplified. In light of the present
£¸]¡¸ ‚¸¨¸¸¬¸ ¤¸¸½”¸½ô ˆ½Å œ¸¸¬¸ ‚¸Ÿ¸ ]¸›¸÷¸¸ ˆÅú ‚¸¨¸¸¬¸ ‚¸¨¸©¡¸ˆÅ÷¸¸‚¸½¿ situation, the state housing boards have the
ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ í½÷¸º ¢¨¸¢©¸«’ ž¸»¢Ÿ¸ˆÅ¸ ¢›¸ž¸¸›¸½ ˆÅú ¬¸¿ž¸¸¨¸›¸¸ í¾ ‚¸¾£ potential of playing the critical role in addressing
the housing needs of the common man as well as
¤¸¸]¸¸£ Ÿ¸½¿ ¨¸¼¢Ö ™£ ˆÅ¸½ ÷¸½]¸ ˆÅ£›¸½ ˆÅú ®¸Ÿ¸÷¸¸ í¾A í¸¥¸¸¿¢ˆÅ, „›í½¿ ‚œ¸›¸ú spurring growth in a market which needs a
œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸‚¸½¿ ‚¸¾£ £µ¸›¸ú¢÷¸¡¸¸½¿ œ¸£ œ¸º›¸¢¨¸Ä\¸¸£ ˆÅ£›¸½ ‚¸¾£ ¨¸í›¸ú¡¸ booster. However, they will have to reorient
‚¸¨¸¸¬¸ ˆ½Å œÏ¸¨¸š¸¸›¸ ˆÅ½ ¢¥¸‡ ‚œ¸›¸½ œÏ¡¸¸¬¸¸½¿ ˆ ú ‚¸½£ š¡¸¸›¸ ˆ½Å¢›Í÷¸ priorities and strategies and focus their efforts
towards the provision of affordable housing.
ˆÅ£›¸¸ í¸½Š¸¸ A
6.4.2 A possible future implication of the present crisis
is that the government may initiate the set up of
6.4.2 ¨¸÷¸ÄŸ¸¸›¸ ¬¸¿¿ˆÅ’ ˆÅú ¬¸¿ž¸¸¢¨¸÷¸ ž¸¸¨¸ú ‡ˆÅ œ¸½\¸ú™Š¸ú ¡¸í í¾ ¢ˆÅ ¬¸£ˆÅ¸£
an institutional body which would perform the
‡ˆÅ ¬¸¿¬˜¸¸Š¸÷¸ ¢›¸ˆÅ¸¡¸ ˆÅ¸ Š¸“›¸ ˆÅ£ ¬¸ˆÅ÷¸ú í¾ ]¸¸½ ž¸» ¬¸Ÿœ¸™¸ ¤¸¸]¸¸£¸½¿ functions of a regulator for the real estate
ˆ½Å ¢¥¸‡ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ˆ½Å ³œ¸ Ÿ¸½¿ ˆÅ¸¡¸Ä ˆÅ£½Š¸¸ ¨¸÷¸ÄŸ¸¸›¸ œ¸¢£¢¬˜¸¢÷¸¡¸¸½¿ Ÿ¸½¿ markets. The formation of such a body is
imperative in the present circumstances as it
‡ˆÅ ‡½¬¸½ ¢›¸ˆÅ¸¡¸ ˆÅ¸ Š¸“›¸ ˆÅ£›¸¸ ‚¢›¸¨¸¸¡¸Ä í¾ Æ¡¸¸½¿¢ˆÅ ƒ¬¸¬¸½ ž¸¸£÷¸ú¡¸ would promote transparency, regulatory
¤¸¸]¸¸£¸½¿ Ÿ¸½¿ œ¸¸£™¢©¸Ä÷¸¸, ¢¨¸¢›¸¡¸¸Ÿ¸›¸¸½¿ ˆÅ¸ ‚›¸ºœ¸¸¥¸›¸ ‚¸¾£ ¢›¸«œ¸®¸ compliance and fair practices in the Indian
œÏ¢ÇÅ¡¸¸‚¸½¿ ˆÅ¸½ ¤¸[õ¸¨¸¸ ¢Ÿ¸¥¸½Š¸¸ ¬¸£ˆÅ¸£ ˆÅ¸½ ž¸¸£÷¸ Ÿ¸½¿ ž¸» ¬¸Ÿœ¸™¸ market. The government should utilize the
present circumstance as an opportunity to
¤¸¸]¸¸£¸½¿ Ÿ¸½¿ ¢›¸¢›¸¡¸¸Ÿ¸ˆÅ ‚¢ž¸©¸¸¬¸›¸ ˆÅ¸½ ¤¸[õ¸¨¸¸ ™½›¸½ ˆ½Å ¢¥¸‡ ƒ¬¸
promote regulatory governance in the real
‚¨¸¬¸£ ˆÅ¸ ûŸ¡¸™¸ „“¸›¸¸ \¸¸¢í‡ A estate markets in India.

98
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
‚š¡¸¸¡¸ 7 À ¢£¨¸¬¸Ä Ÿ¸Á¸’ÄŠ¸½]¸ †µ¸
Chapter 7: Reverse Mortgage Loan
¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆÅ¸½ ‚œ¸›¸½ ]¸ú¨¸›¸ ˆ½Å ¬¸¿š¡¸¸ ˆÅ¸¥¸ Ÿ¸½¿ ‚œ¸›¸ú ]¸³£÷¸¸½¿ ˆÅ¸½ œ¸»£¸
ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢›¸¡¸¢Ÿ¸÷¸ ‚¸¡¸ ‡ˆÅ „œ¸¡¸ºÆ÷¸ ¬÷¸¿£ ÷¸ˆÅ ¤¸[õ¸›¸½ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸
í¸½÷¸ú í¾ A ¬¸½¨¸¸-¢›¸¨¸¼¢î¸ ˆ½Å ¤¸¸™ ‚¸¡¸ ˆ½Å ‡ˆÅ ¨¸¾ˆÅ¢¥œ¸ˆÅ 踸½½÷¸ ˆÅú ‚¸¨¸©¡¸ˆÅ÷¸¸
Ÿ¸í÷¨¸œ¸»µ¸Ä í¸½÷¸ú í¾ A ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆÅ¸½ ‚œ¸›¸ú œ¸½¿©¸›¸/‚›¡¸ ‚¸¡¸ Ÿ¸½¿ ¨¸¼¢Ö ˆ½Å
¢¥¸‡ ¢›¸¡¸¢Ÿ¸÷¸ ³œ¸ ¬¸½ ‚¸¡¸ ˆÅú ]¸³£÷¸ í¸½÷¸ú í¾ A ‚¢š¸ˆÅ¸¿©¸ ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿
ˆ½Å ¢¥¸‡, ‚Ƭ¸£ ‚¸¨¸¸¬¸ „›¸ˆÅú ¬¸¤¸¬¸½ ¤¸”õú ¬¸Ÿœ¸¢î¸ í¸½÷¸¸ í¾ ‚¸¾£ ¢£í¸¡¸©¸ú
Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ¥¸Š¸¸÷¸¸£ ¨¸¼¢Ö ¬¸½ „¬¸½ ‡ˆÅ ’Š¸¼í ƒ¢Æ¨¸’ú’ ¬¸Ÿœ¸¢î¸ ¤¸›¸¸
¢™¡¸¸ í¾ A ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ‡ˆÅ ¢¨¸î¸ú¡¸ „÷œ¸¸™ í¾ ¢]¸¬¸¬¸½ „›í½¿ ‚œ¸›¸ú ¬¸¤¸¬¸½
‚¢š¸ˆÅ ˆÅúŸ¸÷¸ú œ¸¢£¬¸Ÿœ¸¢î¸, ‚˜¸¸Ä÷¸ Ÿ¸ˆÅ¸›¸, ˆÅ¸½ ¢Š¸£¤¸ú £‰¸ˆÅ£ ›¸ˆÅ™ £¸¢©¸
œÏ¸œ÷¸ ˆÅ£›¸½ ˆÅ¸ ‚¨¸¬¸£ ¢Ÿ¸¥¸÷¸¸ í¾ ‚¸¾£ ‡½¬¸¸ ˆÅ£ˆ½Å ¨¸½ ‚œ¸›¸½ ]¸ú¨¸›¸ ˆÅ¸¥¸ Ÿ¸½¿
‡ˆÅ ¢›¸¢©\¸÷¸ £¸¢©¸ ¢›¸¡¸¢Ÿ¸÷¸ :i ¬¸½ œÏ¸œ÷¸ ˆÅ£›¸¸ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ,
‚¸¾£ ¬¸¸˜¸ íú ¨¸½ ‚œ¸›¸½ „¬¸ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ ]¸¤¸ ÷¸ˆÅ \¸¸í½¿, ¢›¸¨¸¸¬¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ A
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‚œ¸›¸ú ¢¨¸î¸ú¡¸ t:jrksa ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¥¸½ ¬¸ˆÅ÷¸½ íÿ A ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸
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Report on Trend and Progress of Housing in India, 2008
Senior Citizens in their twilight years need a reasonable
level of regular income to sustain their essential needs.
The need for an alternate source of retirement income will
become increasingly crucial. Senior citizens need a regular
cash flow stream for supplementing pension/other
income. For most senior citizens, the house is often the
largest component of their wealth and the secular increase
in residential house prices has created considerable
“home equity” wealth. Reverse mortgage is a financial
product that allows them to unlock the value of their most
valuable asset, their home, by mortgaging it to a credit
intermediary and thereby, enjoying the use of an assured
cash flow during their lifetime, while continuing to live in it
as long as they wish.
Reverse Mortgage Loan (RML) seeks to enable house
owning Senior Citizens to meet their financial needs
without selling their property. The reverse mortgage is
so named because the payment stream is “reversed” i.e.
instead of the borrower making monthly payments to a
lender (as in a conventional mortgage), a lender makes
payments to the borrower.
7.1 The Genesis
Internationally, RML is a well entrenched concept
Countries like USA, UK, Canada, Australia and New
Zealand have an active market for the product. The
genesis of reverse mortgage can be traced back to
the developed countries where, due to higher
standards of living, better access to health care and
higher life expectancy, people above 65 years of
age constitute a significant part of the population.
The rising cost of pensions and health care for the
old led the insurance companies to introduce the
reverse mortgage in the US, UK and Australia.
7.2 The Product features
Conceptually, Reverse Mortgage seeks to monetise
the house as an asset and specifically, the owner’s
equity in the house. The scheme involves the senior
citizen borrower(s) mortgaging his/her house
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7.3 Advantages and disadvantages
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Report on Trend and Progress of Housing in India, 2008
property to a lender, who then grants a loan and
makes periodic payments (including an upfront
lump sum payment, if desired) to the borrower(s)
during the latter’s lifetime. The amount of loan
depends largely on market value of residential
property, as assessed by the lender, age of
borrower(s), and prevalent interest rate and would
be a percentage of the assessed value of the
property. Often the loan is structured as an annuity.
Generally speaking, the older a borrower, the larger
would be the percentage of the house’s value that
can be borrowed, on account of mortality rates. The
senior citizen borrower is not required to service the
loan during his lifetime and therefore does not need
to make monthly repayments of principal and
interest to the lender. Consequent upon the
borrower’s death or his leaving the house property
permanently, the loan, along with accumulated
interest, is recovered by the lender through sale of
the house property. The borrower(s)/or their heir(s)
have the option to repay or prepay the loan along
with accumulated interest, and thus, have the
mortgage released without the lender having to
resort to sale of the property.
Some of the major benefits of RML are that it
enables the Asset-Rich and Cash-Poor senior
citizens who own a house but have inadequate
income, to meet their routine needs and
unexpected lump sum expenditure needs such as
renovation/repairs to house, hospitalisation, etc.
The borrower owns and occupies the home till his
demise or change of residence. Even after his/ her
demise, the spouse can continue to stay until
demise. Also, if the spouse is a co-borrower, he/
she will continue to receive payment up to the
contracted term of the loan.
One of the disadvantages of a reverse mortgage is
the issue of origination fees and other closing
costs for the product, which at times can be
relatively higher. Nevertheless, these fees are
deducted from the amount of loan sanctioned and
do not involve an out-of-pocket expense for the
borrower but may reduce the amount receivable
by the borrower. Also, during the tenor of the RML,
the borrower remains responsible for the major
expenses related with keeping a house: property
taxes, utility payments, insurance, maintenance
and upkeep of the house in good condition.
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7.4 í¸½Ÿ¸ ƒ¢Æ¨¸’ú
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Report on Trend and Progress of Housing in India, 2008
7.4 Home Equity
Home equity is the value of a house owner’s
unencumbered interest in his property, that is to
say, the difference between the house’s fair market
value and the unpaid balance of the mortgage and
any outstanding debt over the house. Equity
increases as the mortgage is repaid by the borrower
or as the property enjoys an appreciation in value.
In general, while a regular home loan or “Forward
Mortgage” is a "falling debt, rising equity" type of
product, the Reverse Mortgage is a "rising debt,
falling equity" type of product. In a typical
mortgage, the homeowner makes a monthly
amortised payment to the lender and after each
payment the borrower’s equity increases in his or
her property, and typically, after the end of the term
(say, 20 years), the loan stands repaid in full and
the property is released from the lender. In a
reverse mortgage, however, the home owner
makes no payments and entire amount of interest is
added to the loan against the property. If the owner
receives monthly payments, then the amount of
loan against property increases each month.
7.5 Essential features of RML
The essential features of a typical RML
(as detailed in the NHB’s operational guidelines)
can be enumerated as below:
7.5.1 Reverse Mortgage Loan (RML) is a loan secured
by mortgage over the borrower’s (Senior Citizens
above 60 years of age) residential property,
against which:
the borrower avails of periodical/lump-sum
payments from a lender against the mortgage of
his/her house while being the owner and
occupying the house;
there are no mandatory repayments under the
loan until maturity;
maturity of the loan is expressed to be on the
death of the last borrower, or the borrower(s)
permanently moving out of the house ;
The amount of loan is typically dependent on the
market value of residential property, as assessed
by the bank, age of borrower(s), and prevalent
interest rate. Interestingly, unlike other retail
loans, RML does not require demonstration of
income and repayment capacity.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
7.5.2 Ÿ¸»¥¡¸ ‚›¸ºœ¸¸÷¸ Ÿ¸½¿ ƒ¢Æ¨¸’ú À ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ Ÿ¸½¿ †µ¸ú ˆÅú
ƒ¢Æ¨¸’ú (Ÿ¸»¥¡¸ ‚›¸ºœ¸¸÷¸ Ÿ¸½¿ ƒ¢Æ¨¸’ú - ƒÄ¨¸ú‚¸£) ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸
†µ¸ ˆÅú ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ ¢ˆÅ¬¸ú ž¸ú ¬¸Ÿ¸¡¸ 10% ¬¸½ ˆÅŸ¸ ›¸íì
í¸½Š¸úA
7.5.3 œ¸º›¸Ÿ¸Ä»¥¡¸¸¿ˆÅ›¸ À ¤¸ÿˆÅ „›í½¿ ¤¸¿š¸ˆÅ £‰¸ú Š¸ƒÄ ¬¸Ÿœ¸¢î¸ ˆÅ¸ ¢›¸¡¸¢Ÿ¸÷¸
‚¿÷¸£¸¥¸ œ¸£ œ¸º›¸Ÿ¸Ä»¥¡¸¸¿ˆÅ›¸ ˆÅ£¸÷¸¸ £í½Š¸¸ ]¸¸½ ¬¸Ÿœ¸¢÷¸ ˆ½Å ¬˜¸¥¸,
Ÿ¸ˆÅ¸›¸ ˆ½Å [¸¿\¸½ ˆÅú ¢¬˜¸¢÷¸ ‚¸¢™ ˆ½Å ‚¸š¸¸£ œ¸£ ¢›¸š¸¸Ä¢£÷¸ ˆÅú ]¸¸
¬¸ˆÅ÷¸ú í¾ ƒ¬¸ œÏˆÅ¸£ ˆÅ¸ œ¸º›¸Ÿ¸Ä»¥¡¸¸¿ˆÅ›¸ ˆÅŸ¸ ¬¸½ ˆÅŸ¸ œÏ÷¡¸½ˆÅ ÷¸ú›¸ ¨¸«¸Ä
Ÿ¸½¿ ‡ˆÅ ¤¸¸£ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾, †µ¸ ˆÅú Ÿ¸¸°¸¸ ¬¸Ÿœ¸¢î¸ ƒ¬¸
œ¸º›¸Ÿ¸Ä»¥¡¸¸¿ˆÅ›¸ ˆ½Å ‚¸š¸¸£ œ¸£ †µ¸™¸÷¸¸ ‚œ¸›¸½ ¢›¸µ¸Ä¡¸¸›¸º¬¸¸£
¬¸¿©¸¸½¢š¸÷¸ ˆÅ£ ¬¸ˆÅ÷¸¸ í¾ A
7.5.4 ¢›¸¡¸÷¸ ÷¸¸£ú‰¸ À ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ ÷¸¤¸ íú ™½¡¸ í¸½÷¸¸ í¾ ]¸¤¸
‚¿¢÷¸Ÿ¸ †µ¸ú ˆÅú Ÿ¸¼÷¡¸º í¸½ ]¸¸‡ ¡¸¸ Ÿ¸ˆÅ¸›¸ ˆÅ¸½ ¤¸½\¸›¸¸ \¸¸í½, ¡¸¸
¨¸¼Ö¸¨¸¬˜¸¸ Ÿ¸½¿ ™½‰¸ž¸¸¥¸ ˆ½Å ¢¥¸‡ ¢ˆÅ¬¸ú ¬¸¿¬˜¸¸›¸ ¡¸¸ ¢£©÷¸½™¸£ ˆ½Å œ¸¸¬¸
¬˜¸¸¡¸ú ³œ¸ ¬¸½ \¸¥¸¸ ]¸¸‡ "¬˜¸¸¡¸ú Š¸Ÿ¸›¸" ˆÅ¸ ¬¸¸Ÿ¸¸›¡¸÷¸¸ ¡¸í ‚˜¸Ä
í¸½÷¸¸ í¾ ¢ˆÅ ›¸ ÷¸¸½ †µ¸ú ¡¸¸ ˆÅ¸½ƒÄ ‚›¡¸ ¬¸í-†µ¸ú „¬¸ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿
¥¸Š¸¸÷¸¸£ ‡ˆÅ ¨¸«¸Ä £í¸ í¸½ ¡¸¸ ¥¸Š¸¸÷¸¸£ ›¸ £í›¸¸ \¸¸í÷¸¸ í¸½ A
7.5.5 ¢›¸œ¸’¸›¸ ÷¸¸£ú‰¸ À †µ¸ ‚¸¾£ œÏ¸½™ž¸»÷¸ ¤¡¸¸]¸ ˆÅ¸ ž¸ºŠ¸÷¸¸›¸
‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆÅ¸½ ¤¸½\¸›¸½ ¬¸½ œÏ¸œ÷¸ £¸¢©¸ ¬¸½ ¢ˆÅ¡¸¸ ]¸¸‡ †µ¸ú ¡¸¸
„¬¸ˆ½Å „¸¢š¸ˆÅ¸£ú/‡¬’½’ ˆÅ¸½ †µ¸ ‚¸¾£ œÏ¸½™ž¸»÷¸ ¤¡¸¸]¸ ˆÅ¸
ž¸ºŠ¸÷¸¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, ¬¸Ÿœ¸¢î¸ ˆÅ¸½ ¤¸½\¸½ ¢¤¸›¸¸, œ¸í¥¸½ íˆÅ ¢™¡¸¸ ]¸¸÷¸¸
í¾ œÏ¸³œ¸ œ¸¢£\¸¸¥¸›¸¸÷Ÿ¸ˆÅ ¢™©¸¸-¢›¸™½Ä©¸¸½¿ ˆÅú ©¸÷¸¸½ô ˆ½Å ‚›¸º¬¸¸£, ˆºÅŽ
„œ¸¡¸ºÆ÷¸ ¬¸Ÿ¸¡¸ ¥¸Š¸ž¸Š¸ 2 Ÿ¸¸í ˆÅ¸ ¬¸Ÿ¸¡¸ ¢™¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ ]¸¤¸
¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ Ÿ¸ˆÅ¸›¸ ˆÅ¸½ ¤¸½\¸›¸½ ˆÅú
ˆÅ¸£Ä¨¸¸ƒÄ ©¸º³ ˆÅú ]¸¸÷¸ú í¾ A
7.5.6 œÏ¢¿÷¸ž¸»¢÷¸-¬¸ú¢Ÿ¸÷¸ †µ¸ Š¸¸£¿’ú À ¬¸ž¸ú ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸
„÷œ¸¸™¸½¿ Ÿ¸½¿ ‡ˆÅ ¬¸º¬œ¸«’ ‚¸¾£ œ¸¸£™©¸úÄ ’›¸ˆÅ¸£¸÷Ÿ¸ˆÅ ƒ¢Æ¨¸’ú ›¸íì’
¡¸¸ ’ œÏ¢¿÷¸ž¸»¢÷¸-¬¸ú¢Ÿ¸÷¸ †µ¸’ ˆÅú ‚œ¸½®¸¸ ˆÅú ]¸¿¸÷¸ú í¾ ‚˜¸¸Ä÷¸, †µ¸ú
‚œ¸›¸ú ¬¸Ÿœ¸¢î¸ ˆÅú ¢¤¸ÇÅú ¬¸½ œÏ¸œ÷¸ í¸½›¸½ ¨¸¸¥¸ú ¢›¸¨¸¥¸ £¸¢©¸ ¬¸½ ‚¢š¸ˆÅ
ˆ½Å ¢¥¸‡ ˆÅž¸ú ¨¸\¸›¸ ›¸íì ™½Š¸¸, ¤¸©¸÷¸½Ä †µ¸ ¬¸¿¤¸¿¢š¸÷¸ ¢›¸¡¸Ÿ¸¸½¿ ‚¸¾£
©¸÷¸¸½ô ˆÅ¸ œ¸¸¥¸›¸ í¸½÷¸¸ í¸½ A
7.5.7 Ÿ¸¸½\¸›¸ ¢›¸«¸½š¸/¨¡¸¢÷¸ÇÅŸ¸ ˆÅú ‹¸’›¸¸‡¿ À ¨¡¸¢÷¸ÇÅŸ¸ ˆÅú
¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ‹¸’›¸¸‡¿ í¸½›¸½ ˆÅú ¢¬˜¸¢÷¸ Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ ˆÅ¸
Ÿ¸¸½\¸›¸ ¢›¸«¸½š¸ í¸½ ¬¸ˆÅ÷¸¸ í¾ À
(i) ¡¸¢™ †µ¸ú ¥¸Š¸¸÷¸¸£ ‡ˆÅ ¨¸«¸Ä „¬¸ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ ¢›¸¨¸¸¬¸ ›¸ ˆÅ£½,
102
Report on Trend and Progress of Housing in India, 2008
7.5.2 Equity to Value Ratio: The equity of the
borrower in the residential property (Equity to
Value Ratio - EVR) at any time during the tenor of
a RML shall not fall below 10%.
7.5.3 Re-valuation: The banks will need to re-value
the property mortgaged to them at intervals that
may be fixed by them depending upon the
location of the property, its physical state etc. ;
the quantum of loan may undergo revisions
based on such re-valuation of property at the
discretion of the lender.
7.5.4 Due Date: RML becomes due and payable only
when the last surviving borrower dies or would like
to sell the home, or permanently moves out of the
home for aged care to an institution or to relatives.
Typically, a "permanent move" may generally mean
that neither the borrower nor any other co-
borrower has lived in the house continuously for
one year or do not intend to live continuously.
7.5.5 Settlement Date: Settlement of loan along
with accumulated interest is to be met by the
proceeds received out of sale of residential
property. The borrower(s) or his/her/ heirs/estate
are to be provided with the first right to settle the
loan along with accumulated interest, without sale
of property. In terms of the draft operational
guidelines, a reasonable amount of time, up to 2
months may be provided when RML repayment is
triggered, for house to be sold.
7.5.6 Non-Recourse Guarantee: All RML products
are expected to carry a clear and transparent ’no
negative equity’ or ’non-recourse’ guarantee. That
is, the borrower(s) will never owe more than the net
realizable value of their property, provided the
terms and conditions of the loan have been met.
7.5.7 Foreclosure/ Events of Default: RML is liable
for foreclosure due to occurrence of the following
events of default:
(i) If the borrower has not stayed in the property for a
continuous period of one year
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
(ii) ¡¸¢™ †µ¸ú ¬¸Ÿœ¸¢î¸ ˆÅ£ ˆÅ¸ ž¸ºŠ¸÷¸¸›¸ ¡¸¸ £‰¸ £‰¸¸¤¸ ‚¸¾£ Ÿ¸ˆÅ¸›¸ ˆÅú
Ÿ¸£ŸŸ¸÷¸ ›¸ ˆÅ£¸‡ ¡¸¸ ‹¸£ ˆÅ¸ ¤¸úŸ¸¸ ›¸ ˆÅ£¸ œ¸¸‡, ÷¸¸½ ¤¸ÿˆÅ „¬¸ ‚¸¨¸¸¬¸ú¡¸
¬¸Ÿœ¸¢î¸ ˆÅ¸½ ¤¸½\¸ˆÅ£ †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ ˆÅ¸ ¢›¸™½Ä©¸ ™½›¸½ ‚¸¾£ ¢¤¸ÇÅú ¬¸½
œÏ¸œ÷¸ £¸¢©¸ ¬¸½ ¤¸ˆÅ¸¡¸¸ Ÿ¸»¥¸ †µ¸ £¸¢©¸ ÷¸˜¸¸ ¤¡¸¸]¸ ˆÅú £¸¢©¸ ¨¸¬¸»¥¸ ˆÅ£
¬¸ˆÅ÷¸¸ í¾ A
(iii) ¡¸¢™ †µ¸ú ¬¨¸¡¸¿ ˆÅ¸½ ¢™¨¸¸¢¥¸¡¸¸ ‹¸¸½¢«¸÷¸ ˆÅ£ ™½,
(iv) ¡¸¢™ ¤¸ÿˆÅ ˆÅ¸½ ¤¸¿š¸ˆÅ £‰¸ú Š¸ƒÄ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ †µ¸ú/†¢µ¸¡¸¸½¿ ׸£¸
™¸›¸ Ÿ¸½¿ ™½ ™ú ]¸¸‡ ¡¸¸ Ž¸½”õ ™ú ]¸¸‡,
(v) ¡¸¢™ †µ¸ú ˆÅú ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ Ÿ¸½¿ í¾¢¬¸¡¸÷¸ ¤¸™¥¸ ]¸¸¡¸½ ¢]¸¬¸¬¸½
†µ¸™¸÷¸¸ ˆ½Å †µ¸ ˆÅú œÏ¢÷¸ž¸»¢÷¸ œÏž¸¸¢¨¸÷¸ í¸½÷¸ú í¸½ „™¸í£µ¸ ˆ½Å ¢¥¸‡,
Ÿ¸ˆÅ¸›¸ ˆÅ¸ ˆºÅŽ ¢í¬¬¸¸ ¡¸¸ œ¸»£¸ Ÿ¸ˆÅ¸›¸ ¢ˆÅ£¸¡¸½ œ¸£ \¸[õ¸ ™½›¸¸, Ÿ¸ˆÅ¸›¸ ˆ½Å
¬¨¸¸¢Ÿ¸÷¨¸ Ÿ¸½¿ ˆÅ¸ƒÄ ›¸¡¸¸ ¬¸¸^¸¸ú™¸£ ¤¸›¸¸ ¥¸½›¸¸, Ÿ¸ˆÅ¸›¸ ˆÅ¸ ]¸¸½¢›¸¿Š¸
¨¸Š¸úĈţµ¸ ¤¸™¥¸ ]¸¸›¸¸ ¡¸¸ ¬¸Ÿœ¸¢÷¸ œ¸£ ˆºÅŽ ‚›¡¸ †µ¸ ž¸¸£ ¤¸[õ¸ ™½›¸¸
]¸¸½ \¸¸í½ „¬¸ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆ½Å ‚¸š¸¸£ œ¸£ ¢¥¸¡¸¸ ›¸¡¸¸ †µ¸ í¸½ ¡¸¸
„œ¸í¸£ ¬¨¸³œ¸ ¡¸¸ ¨¸¬¸ú¡¸÷¸ ˆÅ£ˆ½Å ‚œ¸›¸¸ ¢í÷¸ ¬¸Ÿ¸¸œ÷¸ ˆÅ£›¸¸ í¸½,
(vi) †µ¸ú/†¢µ¸¡¸¸½¿ ׸£¸ š¸¸½‰¸¸š¸”õú ¡¸¸ ]¸¸¥¸¬¸¸]¸ú ˆ½Å ˆÅ¸£µ¸,
(vii) ¡¸¢™ ¬¸£ˆÅ¸£ ¬¸¸¿¢¨¸¢š¸ˆÅ œÏ¸¨¸š¸¸›¸¸½¿ ˆ½Å ÷¸í÷¸ ¬¸Ÿœ¸¢î¸ ˆÅ¸½ ¬¸¸¨¸Ä]¸¢›¸ˆÅ
œÏ¡¸¸½Š¸ ˆ½Å ¢¥¸‡ ‚¢š¸ŠÏíµ¸ ˆÅ£›¸¸ \¸¸í÷¸ú í¸½,
(viii)¡¸¢™ ¬¸£ˆÅ¸£ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆÅ¸½ ¤¸½ˆÅ¸£ ‹¸¸½¢«¸÷¸ ˆÅ£ ™½ („™¸í£µ¸
¬¨¸³œ¸ ¬¨¸¸¬˜¡¸ ˆ½Å ¢¥¸‡ ¡¸¸ ¬¸º£®¸¸ ˆÅ¸£µ¸¸½¿ ¬¸½)
7.6 ž¸¸£÷¸ú¡¸ œ¸¢£œÏ½®¡¸ Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸Á¸’ÄŠ¸½]¸
ž¸¸£÷¸ú¡¸ ¤¸¸]¸¸£¸½¿ Ÿ¸½¿ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¾£ ¢›¸]¸ú ®¸½°¸ ˆ½Å ‚›¸½ˆÅ ¤¸ÿˆÅ¸½¿ ׸£¸
¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ ¢™¡¸¸ ]¸¸ £í¸ í¾ A ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿ ž¸¸£÷¸ Ÿ¸½¿
¤¸ÿˆÅ 10-12 œÏ¢÷¸©¸÷¸ ¨¸¸¢«¸ÄˆÅ ˆÅú ™£ ¬¸½ ¤¡¸¸]¸ ¨¸¬¸»¥¸÷¸½ íÿ ‚¸¾£ ¥¸Š¸ž¸Š¸
13 ¥¸¸‰¸ ². Ÿ¸»¥¡¸ ˆÅú ¬¸Ÿœ¸¢÷¸ œ¸£ 10 ¨¸«¸Ä ˆÅú ‚¨¸¢š¸ ˆ½Å ¢¥¸‡ 10 ¥¸¸‰¸
:i, ˆ½Å †µ¸ œ¸£ 4000 ². ¬¸½ 5000 ². ÷¸ˆÅ Ÿ¸¸¢¬¸ˆÅ ¢ˆÅ¬÷¸ ™½÷¸½ íÿ A
†µ¸ ˆÅú ‚¨¸¢š¸ 15 ¨¸«¸Ä í¸½›¸½ œ¸£ ¢ˆÅ¬÷¸ ˆÅú £¸¢©¸ ‹¸’ˆÅ£ ¥¸Š¸ž¸Š¸ 2000
². £í ]¸¸‡Š¸ú Ÿ¸»¥¡¸ ‚›¸ºœ¸¸÷¸ ˆ½Å ‚¸š¸¸£ œ¸£ †µ¸ (œÏ¸½™ž¸»÷¸ ¤¡¸¸]¸
¬¸¢í÷¸) 60 ¬¸½ 90 œÏ¢÷¸©¸÷¸ ˆ½Å ¤¸ú\¸ £í÷¸¸ í¾ ‚¸¾£ †µ¸ ˆÅú ‚¢š¸ˆÅ÷¸Ÿ¸
¬¸Ÿ¸¡¸ ¬¸úŸ¸¸ 15 ¬¸½ 20 ¨¸«¸Ä í¸½÷¸ú í¾ A ‚÷¸À ž¸¸£÷¸ú¡¸ œ¸¢£œÏ½®¡¸ Ÿ¸½¿, ¡¸¢™
†µ¸ú †µ¸ ‚¨¸¢š¸ ˆ½Å ¤¸¸™ ÷¸ˆÅ ]¸ú¢¨¸÷¸ £í÷¸¸ í¾ ÷¸¸½ ¨¸í Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ ¢›¸¨¸¸¬¸
ˆÅ£ ¬¸ˆÅ÷¸¸ í¾ ¢ˆÅ›÷¸º ÷¸¤¸ ¨¸í †µ¸™¸÷¸¸ ¬¸½ ˆÅ¸½ƒÄ ž¸ºŠ¸÷¸¸›¸ œ¸¸›¸½ ˆ½Å ¢¥¸‡
íˆÅ™¸£ ›¸íì í¸½Š¸¸ A í¸¥¸¸¿¢ˆÅ, ¢¨¸™½©¸¸½¿ Ÿ¸½¿ ƒ¬¸ œÏˆÅ¸£ ˆ½Å ž¸ºŠ¸÷¸¸›¸ ˆ½Å ¢¥¸‡
ˆÅ¸½ƒÄ ¢›¸š¸¸Ä¢£÷¸ ¬¸Ÿ¸¡¸ ¬¸úŸ¸¸ ›¸íì í¸½÷¸ú í¾ ¤¸¢¥ˆÅ Š¸¼í ¬¨¸¸Ÿ¸ú (‚¸¾£
„¬¸ˆÅ¸/„¬¸ˆÅú œ¸¢÷¸/œ¸÷›¸ú) œ¸»£½ ]¸ú¨¸›¸ ˆÅ¸¥¸ ÷¸ˆÅ ž¸ºŠ¸÷¸¸›¸ œÏ¸œ÷¸ ˆÅ£÷¸¸
£í÷¸¸ í¾ ‚¸¾£ ƒ¬¸ œÏˆÅ¸£, ‚›¡¸ ™½©¸¸½¿ Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ œ¸»£½ ]¸ú¨¸›¸ ˆÅ¸¥¸
÷¸ˆÅ œÏž¸¸¨¸ú £í÷¸¸ í¾ A
103
Report on Trend and Progress of Housing in India, 2008
(ii) If the borrower(s) fail(s) to pay property taxes or
maintain and repair the residential property or
fail(s) to keep the home insured, the bank
reserves the right to insist on repayment of loan
by bringing the residential property to sale and
utilizing the sale proceeds to meet the
outstanding balance of principal and interest.
(iii) If borrower(s) declare himself/herself/themselves
bankrupt.
(iv) If the residential property so mortgaged to the
bank is donated or abandoned by the
borrower(s).
(v) If the borrower(s) effect changes in the residential
property that affect the security of the loan for the
lender. For example: renting out part or all of the
house; adding a new owner to the house’s title;
changing the house’s zoning classification; or
creating further encumbrance on the property
either by way of taking out new debt against the
residential property or alienating the interest by
way of a gift or will.
(vi) Due to perpetration of fraud or misrepresentation
by the borrower(s).
(vii) If the government under statutory provisions,
seeks to acquiring the residential property for
public use.
(viii) If the government condemns the residential
property (for example, for health or safety
reasons).
7.6 The Indian Perspective to RML
Various public and private sector banks are currently
offering RML in Indian markets. Typically, the banks
in India at present charge interest on the RML in the
range of 10-12 percent per annum, and offer a
monthly instalment of Rs. 4000 to Rs. 5000 to a
borrower for a loan of Rs. 10 lakh with a tenor of 10
years, for a property valued at about Rs.13 lakh.
The amount of instalment decreases to around Rs.
2000 as the tenor of the loan increases to 15 years.
The Loan (including the interest cost) to value ratio
varies from 60 to 90 percent and the maximum
tenor of the loan ranges from 15 to 20 years. Thus,
in the Indian context, if the borrower outlives the
loan tenor, he can continue to stay in the house but
he will no longer be eligible for any payments from
the lender. Internationally, however, the period of
such payments is not for a specified number of
years, but for the remaining life time of the owner
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

7.7 ž¸¸£÷¸ Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸Á¸’ÄŠ¸½]¸ ˆÅ¸ œ¸¢£\¸¸¥¸›¸ (and his/her spouse) of the property, and therefore,
reverse mortgage effectively is a life annuity in
other countries.
ž¸¸£÷¸ Ÿ¸½¿, ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ ›¸½ ‚›¸½ˆÅ ˆÅ¸£µ¸¸½¿ ¬¸½ š¸úŸ¸ú Š¸¢÷¸ ™½‰¸ú í¾ A ƒ¬¸
„÷œ¸¸™ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ˆÅŸ¸ ]¸¸Š¸³ˆÅ÷¸¸ ‚¸¾£ ž¸¸£÷¸ú¡¸ ¬¸Ÿ¸¸]¸ ˆ½Å Ÿ¸¸›¸™¿” 7.7 RML’s take-off in India
¡¸¸½]¸›¸¸ ˆ½Å ‚¸”õ½ ‚¸÷¸½ íÿ A ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ›¸ í¸½›¸½ ˆÅ¸ ‡ˆÅ ˆÅ¸£µ¸ In India, Reverse Mortgage has witnessed a slow
¨¸¬¸ú¡¸÷¸ ž¸ú í¾ A ž¸¸£÷¸ Ÿ¸½¿ ‚ž¸ú ž¸ú ¬¸¿¡¸ºÆ÷¸ œ¸¢£¨¸¸£ ˆÅú œÏ˜¸¸ í¾ ¢]¸¬¸Ÿ¸½¿ start owing to several reasons. Lack of product
awareness and Indian society’s norms seem to
‚Š¸¥¸ú ¡¸º¨¸¸ œ¸ú[õú ‚œ¸›¸½ ¤¸º]¸ºŠ¸¸½ô ˆÅú ™½‰¸ž¸¸¥¸ ˆÅ£÷¸½ íÿ, ]¸¸½ ‡ˆÅ ¤¸”õ¸ ˆÅ¸£µ¸ work against the scheme. A possible motivation for
í¾ ¢]¸¬¸¬¸½ ¨¸¼Ö¸½¿ ˆÅ¸½ ƒ¬¸ ¡¸¸½]¸›¸¸ ¬¸½ ]¸º”õ›¸½ ˆÅú t:jr ›¸íì í¸½÷¸ú í¾, ]¸¤¸¢ˆÅ avoiding the reverse mortgage market is a strong
œ¸¢©\¸Ÿ¸ú ™½©¸¸½¿ Ÿ¸½¿ ¬¸¸Ÿ¸¸¢]¸ˆÅ œÏ˜¸¸‡¿ ˆºÅŽ ƒ¬¸ œÏˆÅ¸£ ˆÅú íÿ ¢]¸›¸Ÿ¸½¿ ¨¸¼Ö motive to bequeath. India still has a strong joint
family culture, with the younger generation
‚œ¸›¸¸ ]¸ú¨¸›¸ ¬¨¸¡¸¿ ]¸ú÷¸½ íÿ ¢ûÅ£ ž¸ú, ퟸ¸£½ ™½©¸ ˆÅú ‚¸¨¸¸™ú ‚¢š¸ˆÅ í¸½›¸½ supporting the elderly, which to an extent, obviates
ˆ½Å ˆÅ¸£µ¸, ž¸¸£÷¸ Ÿ¸½¿ ƒ¬¸ „÷œ¸¸™ ˆÅú Ÿ¸¸¿Š¸ Ÿ¸½¿ ž¸¸£ú ¨¸¼¢Ö ˆÅú ¬¸¿ž¸¸¨¸›¸¸ í¾ A the need for the elderly to opt for such schemes,
unlike in the West, where social mores usually
dictate that the old people live on their own.
¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ›¸¸ ¥¸½›¸½ ˆÅ¸ ‡ˆÅ ‚›¡¸ ˆÅ¸£µ¸ ‚œ¸›¸½ Ÿ¸¸¾]¸»™¸ Ÿ¸ˆÅ¸›¸ ˆÅ¸½ Nonetheless, given the large population of our
›¸¸ Ž¸½¿”õ›¸½ ˆÅú ƒ\Ž¸ í¾ ¢ˆÅ¬¸ú ž¸ú ¨¸¼Ö ˆ½Å ¢¥¸‡ ¢›¸ˆÅ’ ž¸¢¨¸«¡¸ Ÿ¸½¿ Ÿ¸ˆÅ¸›¸ country, there could, potentially, be significant
demand for the product in India.
Ž¸½”õ›¸½ ˆÅú ¡¸¸½]¸›¸¸ ¤¸›¸¸›¸½ (ˆÅíì ™»¬¸£ú ]¸Š¸í Ž¸½’½ Ÿ¸ˆÅ¸›¸ ¡¸¸ ¬¸¬÷¸½ Ÿ¸ˆÅ¸›¸
Ÿ¸½¿) ˆÅ¸ ¢¨¸\¸¸£ ˆÅ£›¸¸ íú ¤¸íº÷¸ ¤¸º£¸ í¸½÷¸¸ í¾, ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ‡ˆÅ ¤¸º£¸ Another reason for avoiding the RML market
altogether may be a desire to move from the
¢¨¸\¸¸£ Ÿ¸¸›¸¸ ]¸¸÷¸¸ í¾, Æ¡¸¸½¿¢ˆÅ ‚¸¨¸¸¬¸ ƒ¢Æ¨¸’ú ¬¸½ ¥¸½›¸™½›¸ ˆÅú Ÿ¸™ Ÿ¸½¿ íú current home. For an elderly citizen planning to
‡ˆÅ ¤¸”õ¸ ¢í¬¬¸¸ ˆÅ’ ]¸¸‡Š¸¸ A move (to a smaller house or a cheaper house
elsewhere) in the near future, a reverse mortgage
would seem to be a very bad idea, since the
¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ¡¸¸½]¸›¸¸ Ÿ¸½¿ ‡ˆÅ ‚›¡¸ ¤¸”õú ¤¸¸š¸¸ †µ¸ ˆÅú ‡ˆÅ transactions cost alone would take a huge bite out
¢›¸š¸¸Ä¢£÷¸ ‚¨¸¢š¸ 20 ¨¸«¸Ä í¾ ‚˜¸¸Ä÷¸ †µ¸ú ‚¢š¸ˆÅ¸¢š¸ˆÅ 20 ¨¸«¸Ä ÷¸ˆÅ of the housing equity.
ž¸ºŠ¸÷¸¸›¸ œÏ¸œ÷¸ ˆÅ£ ¬¸ˆÅ÷¸¸ í¾ í¸¥¸¸¿¢ˆÅ, ¨¸í ‚œ¸›¸½ ¤¸¿š¸ˆÅ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ ¤¸›¸¸ £í Another major limitation of the RML scheme is the
¬¸ˆÅ÷¸¸ í¾A ¢ˆ¿Å÷¸º †µ¸ ‚¨¸¢š¸ ¬¸Ÿ¸¸œ÷¸ í¸½›¸½ ˆ½Å ¤¸¸™ „¬¸½ œÏ¸œ÷¸ í¸½›¸½ ¨¸¸¥¸ú fixed loan term of 20 years i.e. a borrower shall
‚¸¡¸ :d ]¸¸‡Š¸ú ‚¸¾£ ¨¸í „¬¸ ¬¸Ÿ¸¡¸ ‚¬¸í¸¡¸ ‚¨¸¬˜¸¸ Ÿ¸½¿ Ž¸½”õ ¢™¡¸¸ receive payment for a maximum of 20 years.
However, he/she shall continue to stay in the
]¸¸‡Š¸¸ ]¸¤¸¢ˆÅ „¬¸ ¬¸Ÿ¸¡¸ ‚¸¨¸©¡¸ˆÅ÷¸¸ ‚¢š¸ˆÅ í¸½Š¸ú A mortgaged residential property. Their monthly
ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ž¸¸£÷¸ Ÿ¸½¿, ˆºÅŽ ¬¸Ÿ¸¡¸ œ¸í¥¸½ ÷¸ˆÅ †µ¸ ¥¸½›¸¸ ‡ˆÅ ‚\Ž¸ stream of income will stop after completion of the
loan tenure leaving them abandoned particularly
¢¨¸ˆÅ¥œ¸, ¢¨¸©¸½«¸ˆÅ£ ¨¸¼Ö¸¨¸¬˜¸¸ Ÿ¸½¿ ›¸íì Ÿ¸¸›¸¸ ]¸¸÷¸¸ ˜¸¸ A í¸¥¸¸¿¢ˆÅ, when they would need it the most.
¬¸¸Ÿ¸¸¢]¸ˆÅ Ÿ¸¸›¡¸÷¸¸‚¸½¿ Ÿ¸½¿ ÇÅŸ¸©¸À ¤¸™¥¸¸¨¸ í¸½›¸½ œ¸£ ƒ¬¸½ ¤¸”õ½ ‚¸š¸¸£ œ¸£
Further, in India, borrowing, till some time ago, was
¬¨¸úˆÅ¸£ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ A generally, not considered a very desirable option,
more so for the people in older age bracket.
ž¸¸£÷¸ Ÿ¸½¿ ƒ¬¸ ¡¸¸½]¸›¸¸ Ÿ¸½¿ ÷¸½]¸ú ›¸¸ ‚¸›¸½ ˆÅ¸ ‡ˆÅ ‚›¡¸ ˆÅ¸£µ¸ ¡¸í í¾ ¢ˆÅ However, with the gradual changes in the social
fabric, this product could see greater acceptance.
Ÿ¸¸¢¬¸ˆÅ ž¸ºŠ¸÷¸¸›¸ œÏ\¸¢¥¸÷¸ „\\¸ ¤¡¸¸]¸ ™£ ‚¸¾£ ‚¢š¸ˆÅ Ÿ¸¸¢]¸ÄÄ›¸ ˆ½Å ˆÅ¸£µ¸
ž¸ú ‚œ¸½®¸¸ˆ¼Å÷¸ ˆÅŸ¸ í¾ ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ¬¸Ÿœ¸¢î¸ Ÿ¸»¥¡¸¸¿ˆÅ›¸, £‰¸ £‰¸¸¤¸ Another reason for the slow take-off of the scheme
in India is that the monthly payments are relatively
‚¸¾£ œ¸º›¸À ¬¨¸¸¢Ÿ¸÷¨¸ œ¸¸›¸½ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ Ÿ¸¸›¸™¿¿” ¬¸º¬˜¸¸¢œ¸÷¸ í¸½›¸½ ˆÅú low due to the prevailing high interest rate scenario
‚¸¨¸©¡¸ˆÅ÷¸¸ í¾ A and higher margins. Besides, the norms pertaining
to property valuation, maintenance and
repossession need to be well-established.
¡¸í ¬¸»¢\¸÷¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ¢ˆÅ ¢™¬¸Ÿ¤¸£ 2007 Ÿ¸½¿ Ÿ¸¸÷¸¸-¢œ¸÷¸¸ ‚¸¾£ ¨¸¢£«“
It is reported that the enactment of the Maintenance
›¸¸Š¸¢£ˆÅ¸½¿ ˆÅú ™½‰¸ž¸¸¥¸ ‚¸¾£ ˆÅ¥¡¸¸µ¸ ‚¢š¸¢›¸¡¸Ÿ¸, 2007 ¤¸›¸›¸½, ¢]¸¬¸ˆ½Å and Welfare of Parents and Senior Citizens Act, in
÷¸í÷¸ ¤¸º]¸ºŠ¸Ä Ÿ¸¸÷¸¸-¢œ¸÷¸¸ ˆÅú ™½‰¸ž¸¸¥¸ ˆÅ£›¸¸ ¤¸\\¸¸½¿ ‚¸¾£ ¢£©÷¸½™¸£¸½¿ ˆ½Å December 2007, which has made it mandatory for
¢¥¸‡ ‚¸¨¸©¡¸ˆÅ ¤¸›¸¸ ¢™¡¸¸ Š¸¡¸¸ í¾, ¬¸½ ž¸ú ƒ¬¸ „÷œ¸¸™ ˆÅú ¨¸¼¢Ö Ÿ¸½¿ ˆºÅŽ children and relatives to take care of parents in their
old age, could also have some implications for the
¤¸¸š¸¸‡¿ „œ¸¢¬˜¸÷¸ ˆÅ£ ¬¸ˆÅ÷¸¸ í¾ ˆÅ¸›¸»›¸ ˆ½Å ‚›÷¸Š¸Ä÷¸ ©¸ú‹Ï íú ¬˜¸¸¢œ¸÷¸ í¸½›¸½ growth of this product. Maintenance Tribunals,
¨¸¸¥¸½ ‚›¸º£®¸µ¸ ›¡¸¸¡¸¸¢š¸ˆÅ£µ¸ ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆ½Å „¸¢š¸ˆÅ¸¢£¡¸¸½¿ ˆÅ¸½ soon to be set up under the law, can ask the heirs of

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„›¸ˆ½Å ]¸ú¨¸›¸ ¡¸¸œ¸›¸ ˆ½Å ¢¥¸‡ 10,000 ². Ÿ¸¸¢¬¸ˆÅ ˆÅ¸ ž¸ºŠ¸÷¸¸›¸ ˆÅ£›¸½ ˆ½Å a senior citizen to pay up to Rs 10,000 a month for
¢¥¸‡ ‚¸™½©¸ ™½ ¬¸ˆÅ÷¸½ íÿ ¡¸í ‚›¸º£®¸µ¸ ˆÅ¸›¸»›¸ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ¬¸º¢¨¸š¸¸ ¥¸½›¸½ their maintenance. This maintenance law could
thus obviate the need for the senior citizens to
ˆ½Å ¢¥¸‡ ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆÅ¸½ £¸½ˆÅ ¬¸ˆÅ÷¸¸ í¾ A resort to the reverse mortgaging facility.

For senior citizens who intend to stay in their current

¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆ½Å ¢¥¸‡ ]¸¸½ ‚¸]¸ú¨¸›¸ ‚œ¸›¸½ Ÿ¸¸¾]¸»™¸ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ £í›¸¸ \¸¸í÷¸½ íÿ home for life yet do not have an overwhelmingly
strong bequest motive, the reverse mortgage
¢ˆ¿Å÷¸º ¨¸¬¸ú¡¸÷¸ ˆÅ£›¸¸ ›¸íì \¸¸í÷¸½ í¾, „›¸ˆ½Å ¢¥¸‡ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ‡ˆÅ ‚\Ž¸ seems like a potentially important product. Even if
¢¨¸ˆÅ¥œ¸ í¸½ ¬¸ˆÅ÷¸¸ í¾ ¢ûÅ£ ž¸ú ¡¸¢™ ƒ¬¸ ª½µ¸ú ˆ½Å †¢µ¸¡¸¸½¿ ˆÅú ‚¸½£ íú š¡¸¸›¸ one limits attention to the most obvious category of
potential borrowers, elderly home owners who are
ˆ½Å¢›Í÷¸ ¢ˆÅ¡¸¸ ]¸¸‡, ÷¸¸½ ¨¸¡¸¸½¨¸¼Ö Š¸¼í ¬¨¸¸Ÿ¸ú ]¸¸½ ¤¸íº÷¸ ‚\Ž½ Ÿ¸ˆÅ¸›¸ ˆ½Å ¬¨¸¸Ÿ¸ú house rich, cash poor and have no children / have
íÿ; ¢ˆÅ›÷¸º œ¸¾¬¸½½ ¬¸½ ¢›¸š¸Ä›¸ íÿ ‚¸¾£ ¢]¸›¸ˆ½Å ˆÅ¸½ƒÄ ¬¸¿÷¸¸›¸ ›¸íì í¾A ¬¸¿÷¸¸›¸ ¢¨¸™½©¸ Ÿ¸½¿ children living abroad, the numbers runs well into
the millions. When one adds back in the other
¤¸¬¸ú í¾, ÷¸¸½ ‡½¬¸½ ¥¸¸½Š¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ ž¸ú ¥¸¸‰¸¸½¿ Ÿ¸½¿ í¸½Š¸úA ]¸¤¸ ‡½¬¸½ ¨¸¼Ö Š¸¼í elderly households for whom the product may still
¬¨¸¸¢Ÿ¸¡¸¸½¿ ˆÅú Š¸µ¸›¸¸ ˆÅú ]¸¸‡ ¢]¸›¸ˆ½Å ¢¥¸‡ ¡¸í „÷œ¸¸™ „œ¸¡¸¸½Š¸ú í¸½ ¬¸ˆÅ÷¸¸ be desirable, the market potential appears to be
huge in a country with 77 million Senior citizens,
í¾, ™½©¸ Ÿ¸½¿ ¤¸”õú ÷¸¸™¸™ Ÿ¸½¿ ƒ¬¸ „÷œ¸¸™ ˆ½Å ¢¥¸‡ ŠÏ¸íˆÅ ¢Ÿ¸¥¸ ]¸¸‡¿Š¸½A ™½©¸ Ÿ¸½¿ constituting 7.5 per cent of the total population
(census 2001).
77 ¢Ÿ¸¢¥¸¡¸›¸ ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ íÿ ]¸¸½ ˆºÅ¥¸ ]¸›¸¬¸¿‰¡¸¸ ˆÅ¸ 7.5 œÏ¢÷¸©¸÷¸ í¾
(]¸›¸Š¸µ¸›¸¸ 2001) 7.8 Tax Treatment
The exact excerpt from the Hon’ble Finance
7.8 ˆÅ£ œÏ¸¨¸š¸¸›¸ Minister’s Union Budget 2008-09 speech:

“The Reverse Mortgage Scheme was notified by the

Ÿ¸¸›¸›¸ú¡¸ ¢¨¸î¸ Ÿ¸¿°¸ú ׸£¸ ˆ½Å›Íú¡¸ ¤¸]¸’ 2008-09 ˆ½Å ž¸¸«¸µ¸ ¬¸½ „Ö£µ¸ À National Housing Bank in the current financial year.
In order to clarify the tax issues arising out of the
scheme, I propose to amend the Income Tax Act to
"¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ ¡¸¸½]¸›¸¸ ˆÅ¸½ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ \¸¸¥¸» ¢¨¸î¸ ¨¸«¸Ä Ÿ¸½¿ provide that:

‚¢š¸¬¸»¢\¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸A ƒ¬¸ ¡¸¸½]¸›¸¸ ¬¸½ „“½ ˆÅ£ ¬¸¿¤¸¿š¸ú Ÿ¸ºÓ¸½¿ ˆÅ¸ (i) reverse mortgage would not amount to "transfer";
¬œ¸«’úˆÅ£µ¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, Ÿ¸ÿ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ ˆ½Å ¢¥¸‡ ‚¸¡¸- and
ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ ˆÅ¸½ ¬¸¿©¸¸½¢š¸÷¸ ˆÅ£›¸½ ˆÅ¸ œÏ¬÷¸¸¨¸ ˆÅ£÷¸¸ í»¿ À (ii) the stream of revenue received by the senior citizen
(i) ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ "í¬÷¸¸¿÷¸£µ¸" ›¸íì Ÿ¸¸›¸¸ ]¸¸‡Š¸¸ ; ‚¸¾£ would not be "income";”
(ii) ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ ˆÅ¸½ œÏ¸œ÷¸ £¸¢©¸ dks "vk;" ›¸íì Ÿ¸¸›¸¸ ]¸¸‡Š¸¸ ; The Finance Minister in the 2008-09 Budget
clarified the tax issues by proposing to amend the
Income Tax Act to provide that the stream of
¢¨¸î¸ Ÿ¸¿°¸ú ›¸½ 2008-09 ˆ½Å ¤¸]¸’ Ÿ¸½¿ ‚¸¡¸-ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ ˆÅ¸½ ¬¸¿©¸¸½¢š¸÷¸ ˆÅ£›¸½ revenue received by the senior citizen from the
ˆ½Å œÏ¬÷¸¸¨¸ ׸£¸ ˆÅ£ ¬¸¿¤¸¿š¸ú Ÿ¸ºÓ¸½¿ ˆÅ¸½ ¬œ¸«’ ˆÅ£ ¢™¡¸¸ ¢ˆÅ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ¬¸½ reverse mortgage would not be treated as ’income’
for the purpose of Income Tax. A borrower, under
¨¸¢£«“ ›¸¸Š¸¢£ˆÅ ˆÅ¸½ ¢Ÿ¸¥¸›¸½ ¨¸¸¥¸ú £ˆÅŸ¸ ˆÅ¸½ ‚¸¡¸-ˆÅ£ ˆ½Å œÏ¡¸¸½]¸›¸¸˜¸Ä "‚¸¡¸"
this Scheme, will be liable to income tax (in nature
›¸íì Ÿ¸¸›¸¸ ]¸¸‡Š¸¸ ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ †µ¸ú œ¸£ ‚¸¡¸-ˆÅ£ ˆÅú ™½¡¸÷¸¸ „¬¸ of tax on Capital Gains) only at the point of
¢¬˜¸¢÷¸ Ÿ¸½¿ íú ¤¸›¸½Š¸ú (œ¸»¿]¸úŠ¸÷¸ ¥¸¸ž¸ œ¸£ ˆ £ ˆ½Å ³œ¸ Ÿ¸½½¿) ¡¸¢™ ¤¸¿š¸ˆÅŠÏ¸íú ׸£¸ alienation of the mortgaged property by the
mortgagee for the purposes of recovering the loan.
†µ¸ ¨¸¬¸»¥¸ú ˆ½Å ¢¥¸‡ ¤¸¿š¸ˆÅ £‰¸ú ¬¸Ÿœ¸¢î¸ ˆÅ¸½ ¤¸½\¸¸ ]¸¸÷¸¸ í¾ A

7.9 The Present Status in India

7.9 ž¸¸£÷¸ Ÿ¸½¿ ¨¸÷¸ÄŸ¸¸›¸ ¢¬˜¸¢÷¸
As on 31st March 2008, as per the information made
31 Ÿ¸¸\¸Ä, 208 ˆÅ¸½, œÏ¸œ÷¸ ¬¸»\¸›¸¸ ˆ½Å ‚¸š¸¸£ œ¸£, 14 œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸
available, 14 PLIs viz. 12 Banks and 2 Housing
¬¸¿¬˜¸¸›¸¸½¿ ¡¸˜¸¸ 12 ¤¸ÿˆÅ ‚¸¾£ 2 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿, ›¸½ ƒ¬¸ ¡¸¸½]¸›¸¸ ˆÅ¸½ ©¸º³ Finance Companies (HFCs) had launched the
¢ˆÅ¡¸¸ í¾ ]¸¸½ ¢›¸Ÿ›¸¸›¸º¬¸¸£ íÿ À Scheme. They are mentioned as under:

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S.No. ÇÅŸ¸¸¿ˆÅ ¤¸ÿˆÅ ˆÅ¸ ›¸¸Ÿ¸ Name of the Bank

1
ƒ¥¸¸í¸¤¸¸™ ¤¸ÿˆÅ .Allahabad Bank

2
‡¢Æ¬¸¬¸ ¤¸ÿˆÅ Axis Bank

3 ¤¸ÿˆÅ ‚¸ûÅ ¤¸”õ¸¾™¸ Bank of Baroda

4 ˆ½Å›¸£¸ ¤¸ÿˆÅ Canara Bank

5 ¬¸½¿’兩 ¤¸ÿˆÅ ‚¸ûÅ ƒ¿¢”¡¸¸ Central Bank of India

6 ƒ¿¢”¡¸›¸ ¤¸ÿˆÅ Indian Bank

7 œ¸¿]¸¸¤¸ ‚¸¾£ ¢¬¸¿š¸ ¤¸ÿˆÅ Punjab & Sind Bank

8 œ¸¿]¸¸¤¸ ›¸½©¸›¸¥¸ ¤¸ÿˆÅ Punjab National Bank

9 ¬’½’ ¤¸ÿˆÅ ‚¸ûÅ í¾™£¸¤¸¸™ State Bank of Hyderabad

10 ž¸¸£÷¸ú¡¸ ¬’½’ ¤¸ÿˆÅ State Bank of India

11 ¡¸»ˆÅ¸½ ¤¸ÿˆÅ UCO Bank

12 ¡¸»¢›¸¡¸›¸ ¤¸ÿˆÅ ‚¸ûÅ ƒ¿¢”¡¸¸ Union Bank of India

13 ¡¸»›¸¸ƒÄ’½” ¤¸ÿˆÅ ‚¸ûÅ ƒ¿¢”¡¸¸ United Bank of India

S. No. ÇÅŸ¸¸¿ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ›¸¸Ÿ¸ Name of the Housing Finance Companies

1 ™ú¨¸¸›¸ í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸. Dewan Housing Finance Ltd

2 ‡¥¸‚¸ƒÄ¬¸ú í¸„¢¬¸¿Š¸ ûŸƒ›¸½¿¬¸ ¢¥¸. LIC Housing Finance Ltd

7.10 ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ™½›¸½ ˆÅú œÏ¢ÇÅ¡¸¸ 7.10 Delivery Mechanism

Reverse Mortgage Loan is extended by Primary Lending

¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½½]¸ †µ¸ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ (œ¸ú‡¥¸‚¸ƒÄ{¸) ¡¸˜¸¸ Institutions (PLIs), viz. Scheduled Commercial Banks
‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿, ׸£¸ ¬¸¿¢¨¸÷¸¢£÷¸ and Housing Finance Companies.
¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ A
Simple service process of Reverse Mortgage
¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ˆÅú ¬¸£¥¸ ¬¸½¨¸¸ œÏ¢ÇÅ¡¸¸ À Loan:

l A house owning senior citizen with a clear title

¬¸º¬œ¸«’ ¬¨¸¸¢Ÿ¸÷¨¸ ¨¸¸¥¸½ Š¸¼í ¬¨¸¸Ÿ¸ú ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸
approaches a PLI for RML.
ˆ½Å ¢¥¸‡ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ¬¸½ ¬¸Ÿœ¸ˆÄÅ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ¿ A

l PLI gets the legal opinion on the house, gets the

œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ Ÿ¸ˆÅ¸›¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ˆÅ¸›¸»›¸ú ¬¸¥¸¸í ¥¸½÷¸½ íÿ,
property valued through approved valuers.
‚›¸ºŸ¸¸½¢™÷¸ Ÿ¸»¥¡¸¸¿ˆÅˆÅ ¬¸½ ¬¸Ÿœ¸¢î¸ ˆÅ¸ Ÿ¸»¥¡¸¸¿ˆÅ›¸ ˆÅ£¸÷¸½ íÿ A

œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ œ¸»£ú ¬¸¸¨¸š¸¸›¸ú ¬¸½ ¢¨¸\¸¸£ ˆÅ£ˆ½Å †µ¸ ˆÅú l PLI conducts due diligence and decides the quantum
of loan.
Ÿ¸¸°¸¸ ˆÅ¸ ¢›¸š¸¸Ä£µ¸ ˆÅ£÷¸¸ í¾ A

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†µ¸ú ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ ‚œ¸›¸¸ Ÿ¸ˆÅ¸›¸ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ ˆÅ¸½ l The senior citizen borrower mortgages his/her
¤¸¿š¸ˆÅ ˆÅ£÷¸¸ í¾ A house to PLI.
PLI provides the borrower with various options
œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ „œ¸¥¸¤š¸ ¢¨¸¢ž¸››¸ ¢¨¸ˆÅ¥œ¸ available in the Scheme viz. periodic payments,
†µ¸ú ˆÅ¸½ „œ¸¥¸¤š¸ ˆÅ£¸÷¸¸ í¾ ]¸¾¬¸½ ‚¸¨¸¢š¸ˆÅ ž¸ºŠ¸÷¸¸›¸, ‡ˆÅ Ÿ¸º©÷¸ lump sum payments, line of credit or any other
ž¸ºŠ¸÷¸¸›¸, ‚¢š¸ˆÅ÷¸Ÿ¸ †µ¸ ¡¸¸ ˆÅ¸½ƒÄ ‚›¡¸ ¬¸¢ŸŸ¸ªµ¸ A combination.

PLI calculates the payments to be made and acts

œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ ¢ˆÅ¡¸½ ]¸¸›¸½ ¨¸¸¥¸½ ž¸ºŠ¸÷¸¸›¸¸½¿ ˆÅú Š¸µ¸›¸¸ ˆÅ£÷¸¸ accordingly.
í¾ ‚¸¾£ ÷¸™›¸º¬¸¸£ ˆÅ¸£Ä¨¸¸ƒÄ ˆÅ£÷¸¸ í¾ A
PLI revalues the property once in every 5 years.
œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ œÏ÷¡¸½ˆÅ 5 ¨¸«¸Ä Ÿ¸½¿ ‡ˆÅ ¤¸¸£ ¬¸Ÿœ¸¢î¸ ˆÅ¸ And in case of any revision in property value, w i t h
the consent of borrower, may increase the loan
œ¸º›¸Ÿ¸Ä»¥¡¸¸¿ˆÅ›¸ ˆÅ£¸¡¸¸ ]¸¸÷¸¸ í¾ ‚¸¾£ ¬¸Ÿœ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸ Ÿ¸½¿ ¬¸¿©¸¸½š¸›¸ í¸½›¸½ quantum thereby increasing the periodic
œ¸£, †µ¸ú ˆÅú ¬¸íŸ¸¢÷¸ ¬¸½, †µ¸ ˆÅú Ÿ¸¸°¸¸ ¤¸[õ¸ ¬¸ˆÅ÷¸¸ í¾ ¢]¸¬¸¬¸½ ‚¸¨¸¢š¸ˆÅ payment.
ž¸ºŠ¸÷¸¸›¸ £¸¢©¸ ¤¸[õ ]¸¸÷¸ú í¾ A
The loan becomes due and payable after the demise
of the last surviving borrower.
‚¿¢÷¸Ÿ¸ ]¸ú¢¨¸÷¸ †µ¸ú ˆÅú Ÿ¸¼÷¡¸º ˆ½Å ¤¸¸™ †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸¸ í¸½÷¸¸ í¾ A

œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸ ¤¸¿š¸ˆÅ ¬¸Ÿœ¸¢î¸ œ¸£ ¢™¡¸½ †µ¸ ˆÅú Ÿ¸»¥¸ £¸¢©¸ l PLI gives the legal heirs up to 2 months to repay the
Principal+Accumulated Interest to regain the
‚¸¾£ œÏ¸½™ž¸»÷¸ ¤¡¸¸]¸ ˆÅ¸½ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢¨¸¢š¸ˆÅ „¸¢š¸ˆÅ¸£ú ˆÅ¸½ 2 mortgaged property.
Ÿ¸¸í ˆÅ¸ ¬¸Ÿ¸¡¸ ™½÷¸¸ í¾ A

l In case they are not in a position to pay, PLI sells the

¡¸¢™ ¨¸½ †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ ˆÅú ¢¬˜¸¢÷¸ Ÿ¸½¿ ›¸ í¸½¿, ÷¸¸½ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸
mortgaged property and settles the loan dues.
¬¸¿¬˜¸¸›¸ ׸£¸ ¬¸Ÿœ¸¢î¸ ¤¸½\¸ ™ú ]¸¸÷¸ú í¾ ‚¸¾£ †µ¸ £¸¢©¸ ¨¸¬¸»¥¸ ˆÅ£ ¥¸½÷¸ú í¾ Surplus is returned to the legal heirs.
„¬¸¬¸½ ûŸ¥¸÷¸» £ˆÅŸ¸ ¢¨¸¢š¸ˆÅ „¸¢š¸ˆÅ¸¢£¡¸¸½¿ ˆÅ¸½ ¥¸¸¾’¸ ™ú ]¸¸÷¸ú í A
For a property of Rs.10 lakh the RML monthly payment
shall be:
10 ¥¸¸‰¸ ²œ¸¡¸½ ˆÅú ¬¸Ÿœ¸¢î¸ ˆ½Å ¢¥¸‡ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ ˆÅ¸ Ÿ¸¸¢¬¸ˆÅ ž¸ºŠ¸÷¸¸›¸
¢›¸Ÿ›¸¸›¸º¬¸¸£ í¸½Š¸¸ -

¬¸Ÿœ¸¢î¸ ˆÅ¸ Ÿ¸»¥¡¸ Property Value Rs. 1,000,000

Ÿ¸»¥¡¸ ‚›¸ºœ¸¸÷¸ Ÿ¸½¿ †µ¸ Loan To Value Ratio 80%

¤¡¸¸]¸ ™£ (œÏ¢÷¸ ¨¸«¸Ä) Interest Rate (per annum) 10%

¢†µ¸ ‚¨¸¢š¸ (¨¸«¸¸½ô Ÿ¸½¿) Loan Period (in years) 20

¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸-Ÿ¸¸¢¬¸ˆÅ ž¸ºŠ¸÷¸¸›¸ RML Monthly Payment Rs. 1054

107
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7.11 Global Scenario

7.11 ¨¸¾¢©¨¸ˆÅ œ¸¢£´©¡¸
¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ ¢¨¸ˆÅ¢¬¸÷¸ ™½©¸¸½¿ ]¸¾¬¸½ ‚Ÿ¸£úˆÅ¸, ¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ Ÿ¸½¿
¥¸¸½ˆÅ¢œÏ¡¸ í¾ ‚¸¾£ ˆºÅŽ ‚›¡¸ ™½©¸¸½¿ Ÿ¸½¿ ]¸¾¬¸½ ‚¸¬’ï½¢¥¸¡¸¸, ˆÅ›¸¸”¸ ‚¸¾£ ›¡¸»]¸ú¥¸ÿ”
‚¸¢™ Ÿ¸½¿ š¸ú£½-š¸ú£½ ¥¸¸½ˆÅ¢œÏ¡¸ í¸½ £í¸ í¾ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ (¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ Ÿ¸½¿
ƒ¬¸½ ’¥¸¸ƒûÅ’¸ƒŸ¸ Ÿ¸¸’ÄŠ¸½]¸’ ˆÅí¸ ]¸¸÷¸¸ í¾) ‚›÷¸£¸Ä«’ïú¡¸ ¬÷¸£ œ¸£ ’ƒ¢Æ¨¸’ú
¢£¥¸ú]¸’ ¤¸¸]¸¸£ Ÿ¸½¿ ‡ˆÅ ¤¸íº÷¸ ¥¸¸½ˆÅ¢œÏ¡¸ „÷œ¸¸™ í¾ ¢]¸¬¸ˆ½Å ™¸½ ‚¸¾£ „÷œ¸¸™ íÿ
¡¸˜¸¸ í¸½Ÿ¸ ¢£¨¸¬¸Ä›¸ ¬ÆúŸ¸ ‚¸¾£ ’©¸½¡¸”Ä ‡œÏú¢©¸¡¸©¸›¸ Ÿ¸¸’ÄŠ¸½]¸ (‡¬¸‡‡Ÿ¸)
í¸½Ÿ¸ ¢£¨¸¬¸Ä›¸ ¬ÆúŸ¸ ˆ½Å ÷¸í÷¸, ŠÏ¸íˆÅ ‚œ¸›¸¸ Ÿ¸ˆÅ¸›¸ ¤¸Ø¸ Ÿ¸»¥¡¸ œ¸£ ¤¸½\¸ ™½÷¸¸ í¾
(35 œÏ¢÷¸©¸÷¸ ¬¸½ 60 œÏ¢÷¸©¸÷¸ ˆ½Å ¤¸ú\¸), ¢ˆ¿Å÷¸º „¬¸ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ Ÿ¸¼÷¡¸º œ¸¡¸Ä›÷¸ ¡¸¸
¬¨¸¾\Ž¸ ¬¸½ ‰¸¸¥¸ú ˆÅ£›¸½ ÷¸ˆÅ £í ¬¸ˆÅ÷¸¸ í¾ ‡¬¸‡‡Ÿ¸ ¢ˆÅ¬Ÿ¸ ˆÅú ƒ¢Æ¨¸’ú ]¸¸£ú
í¸½›¸½ ˆ½Å ÷¸í÷¸, ŠÏ¸íˆÅ ¬¸Ÿœ¸¢î¸ œ¸£ ¢¥¸¡¸½ Š¸‡ †µ¸ ˆ½Å ˆºÅŽ ‚¿©¸ œ¸£ ‹¸’ú ™£ œ¸£
¤¡¸¸]¸ ¡¸¸ ˆÅ¸½ƒÄ ¤¡¸¸]¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ œ¸£ ¬¸Ÿœ¸¢î¸ œ¸£ œ¸»¿]¸úŠ¸÷¸ ¥¸¸ž¸ Ÿ¸½¿ ‚œ¸›¸¸
ˆºÅŽ ‚¢š¸ˆÅ¸£ Ž¸½”õ ¬¸ˆÅ÷¸¸ í¾ í¸¥¸¸¿¢ˆÅ ƒ¢Æ¨¸’ú ¢£¥¸ú]¸ „÷œ¸¸™ ‚¸¬’ï½¢¥¸¡¸¸ Ÿ¸½¿
‚œ¸½®¸¸ˆ¼Å÷¸ ›¸¡¸¸ í¾, ¨¸½ ¡¸»›¸¸ƒÄ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ ‚¸¾£ ‚Ÿ¸£úˆÅ¸ Ÿ¸½¿ ¨¸«¸¸½ô ¬¸½ œÏ\¸¢¥¸÷¸ í¾
ƒ¬¸ ‚š¡¸¸¡¸ Ÿ¸½¿ ¬¸¿Š¸÷¸ ‚›¸ºž¸¨¸¸½¿ ˆÅ¸ „¥¥¸½‰¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ ‚¸¾£ œÏ÷¡¸½ˆÅ
‚¢š¸ˆÅ¸£ ®¸½°¸ Ÿ¸½¿ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ˆÅ¸¡¸Ä[¸¿\¸¸½¿ ˆÅú ¨¡¸¸‰¡¸¸ ™ú Š¸ƒÄ í¾ A
Reverse Mortgage is popular in developed countries like
USA, UK and gradually gaining popularity in other
countries such as Australia, Canada, and New Zealand
etc. Reverse Mortgage (known as Lifetime Mortgages in
UK) is the most popular product internationally, within
the “Equity Release” market, which has two more
products viz. Home Reversion schemes and Shared
Appreciation Mortgages (SAMs). Under the Home
Reversion schemes, the consumer sells his or her house
at a discounted price (typically between 35 per cent and
60 per cent), but can stay in the property until his
demise or voluntarily vacation. Under the SAM type of
equity release, the consumer gives up the right to some
of the capital gain on the property in return for paying
reduced or no interest on some part of his or her
borrowings against the property. Whilst equity release
products are relatively new to Australia, they have been
available in the United Kingdom and the United States
for several decades. This chapter describes a number of
relevant experiences and the regulatory frameworks in
each jurisdiction.

¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ United Kingdom

„÷œ¸¸™ ¬¸Ÿ¸ú®¸¸ Product review
¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸, í¸½Ÿ¸ ¢£¨¸]¸Ä›¸ ¡¸¸½]¸›¸¸ ‚¸¾£ ‡¬¸‡‡Ÿ¸ ¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ Ÿ¸½¿ Reverse mortgages, home reversion schemes and SAMs
have been available in the United Kingdom for between
10 ¬¸½ 30 ¨¸«¸¸½ô ˆ½Å ¢¥¸‡ „œ¸¥¸¤š¸ íÿ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½¿ ‚›¸ºŸ¸¸›¸ í¾ ¢ˆÅ ¡¸»›¸¸ƒ’½” 10 and 30 years. It is currently estimated that about 75
¢ˆ¿ÅŠ¸”Ÿ¸ Ÿ¸½¿ ƒ¢Æ¨¸’ú ¢£¥¸ú]¸ „÷œ¸¸™¸½¿ ˆÅ¸ ¥¸Š¸ž¸Š¸ 75 œÏ¢÷¸©¸÷¸ „œ¸¥¸¤š¸ ž¸¸Š¸ per cent of equity release products available in the
Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ í¾ ‚¸¾£ ©¸½«¸ „œ¸¥¸¤š¸ „÷œ¸¸™¸½¿ Ÿ¸½¿ ‚¢š¸ˆÅ¸¿©¸÷¸¸ í¸½Ÿ¸ ¢£¨¸]¸Ä›¸ United Kingdom are reverse mortgages and a majority
of the remaining available products are home reversion
¡¸¸½]¸›¸¸‡¿ íÿ ¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ Ÿ¸½¿ ‡¬¸‡‡Ÿ¸ ¤¸íº÷¸ íú ˆÅŸ¸ „œ¸¥¸¤š¸ íÿ schemes. There are few, if any, SAMs currently available
¢¨¸©¸¥¸½«¸ˆÅ¸½¿ ›¸½ Š¸¸¾µ¸ ¤¸¸]¸¸£ Ÿ¸½¿ ¢›¸¨¸½©¸ˆÅ¸½¿ ׸£¸ ‡¬¸‡‡Ÿ¸ ˆÅ¸½«¸ í½÷¸º ¤¸¸¿”¸½ ˆÅú in the United Kingdom. Commentators have variously
‰¸£ú™ ›¸¸ ˆÅ£›¸½ ˆ½Å ˆÅ¸£µ¸¸½¿ ‚¸¾£ ŠÏ¸íˆÅ¸½¿ ׸£¸ ‡½¬¸ú ¡¸¸½]¸›¸¸‚¸½¿ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ›¸ attributed the limited size of the current SAM market to
the failure of secondary market investors to buy the
í¸½›¸½ ˆÅú ƒ\Ž¸ ˆÅ¸½ ‡¬¸‡‡Ÿ¸ ¤¸¸]¸¸£ ˆÅ¸ ¢¨¸¬÷¸¸£ ›¸ í¸½›¸¸ ¤¸÷¸¸¡¸¸ í¾ A bonds used to fund SAMs and reluctance by consumers
to enter such schemes.
¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ ‚¸¾£ ‡¬¸‡‡Ÿ¸ ™¸½›¸¸½¿ ˆÅú ‚¸¥¸¸½\¸›¸¸ ˆÅú Both reverse mortgages and SAMs have been criticised
]¸¸÷¸ú í¾ Æ¡¸¸½¿¢ˆÅ ˆºÅŽ ŠÏ¸íˆÅ¸½¿ œ¸£ „¬¸ˆÅ¸ ‚¬¸¿ž¸¸¢¨¸÷¸ œÏž¸¸¨¸ œ¸”ö÷¸¸ í¾ 1980 in the United Kingdom because of their unexpected
ˆ½Å ‚¿÷¸ Ÿ¸½¿ í]¸¸£¸½¿ ¬¸½¨¸¸-¢›¸¨¸¼î¸ ¥¸¸Š¸¸½¿ ›¸½ œ¸¢£¨¸÷¸úÄ ™£ ˆ½Å ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ¬¸½ š¸›¸ impact on some consumers. In the late 1980s thousands
of retired people took out variable rate reverse
¢›¸ˆÅ¸¥¸ ¢¥¸¡¸¸ ‚¸¾£ „¬¸ œÏ¸œ÷¸ š¸›¸ ˆÅ¸½ ¬’¸ÁˆÅ ¤¸¸]¸¸£ ¬¸½ ¬¸Ÿ¤¸Ö ¢›¸¨¸½©¸ ¤¸¸¿”¸½¿ Ÿ¸½¿ mortgages and put the money thereby obtained into
¢›¸¨¸½©¸ ˆÅ£ ¢™¡¸¸ ƒ›¸ ¤¸¸¿”¸½¿ ¬¸½ œÏ¸œ÷¸ ‚¸¡¸ ˆÅ¸½ ¤¸¿š¸ˆÅ œ¸£ ™½¡¸ ¤¡¸¸]¸ ˆ½Å ž¸ºŠ¸÷¸¸›¸ stock market-related investment bonds. The income
‚¸¾£ ‚¢÷¸¢£Æ÷¸ ‚¸¡¸ ˆ½Å ¢¥¸‡ œ¸¡¸¸Äœ÷¸ Ÿ¸¸°¸¸ Ÿ¸½¿ ¢Ÿ¸¥¸›¸½ ˆÅú ‚¸©¸¸ ˜¸ú í¸¥¸¸¿¢ˆÅ, from these bonds was expected to be sufficient to pay
the interest on the mortgage and provide additional
¤¸¸]¸¸£ ¬¸½ ƒ›¸ ¤¸¸¿”¸½¿ œ¸£ ˆÅŸ¸ ‚¸¡¸ œÏ¸œ÷¸ íºƒÄ ‚¸¾£ ƒ¬¸ˆ½Å ¬¸¸˜¸ íú ¤¡¸¸]¸ ™£¸½¿ Ÿ¸½¿ regular income. However, the market produced poor
¨¸¼¢Ö í¸½ Š¸ƒÄ ÷¸˜¸¸ ¬¸Ÿœ¸¢î¸ ˆÅú ˆÅúŸ¸÷¸½¿ ˆÅŸ¸ í¸½ Š¸ƒÄ ¤¸íº÷¸ ŠÏ¸íˆÅ¸½¿ ˆ½Å †µ¸ „›¸ˆÅú returns on the bonds, and at the same time interest
¬¸Ÿœ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ ¬¸½ ‚¢š¸ˆÅ í¸½ Š¸¡¸½ ¢]¸¬¸¬¸½ †µ¸™¸÷¸¸‚¸½¿ ›¸½ „›í½¿ ‰¸¸¥¸ú ˆÅ£¸ rates rose and property values fell. Many consumers’
debts exceeded the value of their properties, so that
¢¥¸¡¸¸ ÷¸˜¸¸ ‡½¬¸½ ‚›¸½ˆÅ Ÿ¸¸Ÿ¸¥¸¸½¿ Ÿ¸½¿ ‚™¸¥¸÷¸ú ˆÅ¸£Ä¨¸¸ƒÄ \¸¥¸ £íú í¾ A providers evicted them and a significant number are still
]¸¤¸ 1997 ‚¸¾£ 1998 Ÿ¸½¿ ‡¬¸‡‡Ÿ¸ ¤¸”õú Ÿ¸¸°¸¸ Ÿ¸½¿ ¢™¡¸½ Š¸‡ ÷¸¸½ ‚¸£¿ž¸ Ÿ¸½¿ involved in court actions with providers.

108
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
ŠÏ¸íˆÅ¸½¿ ˆÅú ‚\Žú œÏ¢÷¸¢ÇÅ¡¸¸ ˜¸ú ¡¸½ „÷œ¸¸™ Ÿ¸º‰¡¸÷¸¸ ¨¸¼Ö¸½¿ ˆ½Å ¢¥¸‡ ÷¸¾¡¸¸£ ¢ˆÅ¡¸½
Š¸‡ ˜¸½ ‚¸¾£ ƒ›¸ˆ½Å ÷¸í÷¸ ŠÏ¸íˆÅ¸½¿ ˆÅ¸½ ‡ˆÅŸ¸º©÷¸ ž¸ºŠ¸÷¸¸›¸ ¢Ÿ¸¥¸ ]¸¸÷¸¸ ˜¸¸, ¢]¸›¸ˆ½Å
¤¸™¥¸½ Ÿ¸½¿ †µ¸™¸÷¸¸ ˆÅ¸½ ¬¸Ÿœ¸¢î¸ ˆ½Å ¥¸¸ž¸ Ÿ¸½¿ ˆºÅŽ ¢í¬¬¸¸ ¢Ÿ¸¥¸›¸½ ˆÅú íˆÅ™¸£ú ¢Ÿ¸¥¸
]¸¸÷¸ú ˜¸ú ]¸¸½ ŠÏ¸íˆÅ ˆÅú Ÿ¸¼÷¡¸º í¸½›¸½ ¡¸¸ ¬¸Ÿœ¸¢î¸ ˆÅ¸½ ‰¸¸¥¸ú ˆÅ£ ™½›¸½ œ¸£ ¢Ÿ¸¥¸÷¸¸
í¾A ‡¬¸‡‡Ÿ¸ †µ¸¸½¿ ˆÅú ©¸÷¸¸½ô ˆ½Å ‚›¸º¬¸¸£ ¬¸Ÿœ¸¢î¸ ˆÅú ¢¤¸ÇÅú ˆÅ£›¸½ œ¸£ ¤¸[õ½ íº‡
Ÿ¸»¥¡¸ Ÿ¸½¿ ¬¸½ 75 œÏ¢÷¸©¸÷¸ ÷¸ˆÅ ¢í¬¬¸¸ †µ¸ú ׸£¸ †µ¸™¸÷¸¸ ˆÅ¸½ ™½›¸¸ í¸½÷¸¸ í¾A
1998 ¬¸½ 2002 ˆ½Å ¤¸ú\¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ ž¸¸£ú ¨¸¼¢Ö ˆ½Å ¤¸¸™, ‚›¸½ˆÅ¸½¿
ŠÏ¸íˆÅ¸½¿ ›¸½ ¢¨¸\¸¸£ ¢ˆÅ¡¸¸ ¢ˆÅ „›í¸½¿›¸½ ‚\Ž¸ ¬¸¸¾™¸ ›¸íì ¢ˆÅ¡¸¸ ‚¸¾£ œ¸»¿]¸úŠ¸÷¸ ¢]¸¬¸½
„›¸ˆ½Å ׸£¸ Ž¸½”õ¸ ]¸¸›¸¸ ˜¸¸, ¨¸í Ÿ¸»¥¸ ‚¢ŠÏŸ¸ £¸¢©¸ ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ¤¸íº÷¸
‚¢š¸ˆÅ ˜¸¸ A
¢¨¸¢›¸¡¸Ÿ¸›¸
ƒ›¸ ™¸½ ‹¸’›¸¸‚¸½¿ ˆ½Å ¤¸¸™ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ [¸¿\¸½ Ÿ¸½¿ Ÿ¸í÷¨¸œ¸»µ¸Ä œ¸¢£¨¸÷¸Ä›¸ íº‡ ‚¸¾£ ‚¤¸
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¢¨¸©¸½«¸ ûŸŸ¸Ä Ÿ¸½¿ ]¸¸½ ¨¸÷¸ÄŸ¸¸›¸ Ÿ¸½ í¾) A
1991 Ÿ¸½¿ ’¬¸½ûÅ í¸½Ÿ¸ ƒ›ˆÅŸ¸ œ¥¸¸›¸’ (‡¬¸‡\¸‚¸ƒÄœ¸ú) ƒ¢Æ¨¸’ú ¢£¥¸ú]¸ „÷œ¸¸™¸½¿
ˆ½Å ¢¥¸‡ ‡ˆÅ ‚¸\¸¸£ ¬¸¿¢í÷¸¸ ˆ½Å ¬¸¸˜¸ ‡ˆÅ ¬¨¸-¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ¢›¸ˆÅ¸¡¸ ˆ½Å :i Ÿ¸½¿
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]¸¸›¸½ œ¸£ ¤¸ú\¸ ˆ½Å ‚¿÷¸£ ˆÅ¸½ ¨¸í›¸ ˆÅ£½¿Š¸½),
¬¸ž¸ú ¬¸¿¢¨¸™¸‚¸½¿ Ÿ¸½¿ ŠÏ¸íˆÅ¸½¿ ׸£¸ ¢¨¸¢š¸ˆÅ ¬¸¥¸¸í ¥¸½›¸ú í¸½Š¸ú, ‚¸¾£
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ˆÅúŸ¸÷¸¸½¿ ˆÅ¸ œÏˆÅ’úˆÅ£µ¸
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(‡ûҬ¸‡) ›¸½ ¤¸¿š¸ˆÅ¸½¿ ¨¸ ¢£¨¸¬¸Ä ¤¸¿š¸ˆÅ¸½¿ ˆÅ¸ ¢¨¸¢›¸¡¸Ÿ¸›¸ ¢ˆÅ¡¸¸ ¢¨¸©¸½«¸ :i
¬¸½, ›¸ƒÄ ©¸¸¬¸›¸ ¨¡¸¨¸¬˜¸¸ Ÿ¸½¿ ¢£¨¸¬¸Ä ¤¸¿š¸ˆÅ ‚¢š¸ˆÅ ]¸¸½¢‰¸Ÿ¸ ¨¸¸¥¸½ Ÿ¸¸›¸½ Š¸‡
‚¸¾£, ÷¸™›¸º¬¸¸£, ‡ûҬ¸‡ ¬¸¿¨¸½™›¸©¸ú¥¸ ¨¸¼Ö ŠÏ¸íˆÅ¸½¿ ˆÅú ¢íûŸ]¸÷¸ ˆ½Å
¢¥¸‡ ƒ›¸ „÷œ¸¸™¸½¿ ˆÅú ¢¤¸ÇÅú ˆ½Å ¤¸¸£½ Ÿ¸¿ ¬¸¤¸ œÏˆÅ¸£ ˆÅ¸ Ÿ¸¸Š¸Ä™©¸Ä›¸ ˆÅ£÷¸¸ í¾ A
¢¨¸¢›¸¡¸Ÿ¸ „›¸ ¬¸¿Š¸“›¸¸½¿ œ¸£ ¥¸¸Š¸» í¸½÷¸½ íÿ ]¸¸½A ¤¸¿š¸ˆÅ ™½÷¸½, ™½‰¸£½‰¸ ˆÅ£÷¸½,
œ¸£¸Ÿ¸©¸Ä ™½÷¸½ ¡¸¸ ¤¸¿š¸ˆÅ ˆÅú ¨¡¸¨¸¬˜¸¸ ˆÅ£÷¸½ íÿ ¢ˆ¿Å÷¸º ƒ¬¸Ÿ¸½¿ (ˆºÅŽ
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„œ¸¥¸¤š¸ ˆÅ£¸÷¸½ íÿ) ˆÅ¸½ ƒ¬¸¬¸½ ‚¥¸Š¸ £‰¸¸ Š¸¡¸¸ ¢¨¸š¸½¡¸ˆÅ Ÿ¸½¿ ‚¤¸ ©¸¸¢Ÿ¸¥¸
í¾ À
109
Report on Trend and Progress of Housing in India, 2008
When SAMs were offered more widely in 1997 and 1998
there was initially a very high take-up rate by
consumers. These products were targeted mainly at
elderly people and were structured to provide
consumers with an upfront payment, in return for which
the provider would be entitled to a share of appreciation
in the property, usually upon the consumer’s death or
vacation of the property. The terms of the SAM loans
required borrowers to give up to 75 per cent of any
increase in the properties value to the provider on sale.
After housing prices increased dramatically from 1998 to
2002, many consumers considered, in retrospect, that
they had made a bad bargain and that the capital gain
they were required to give up was excessive relative to
the size of the original advance.
Regulation
The regulatory landscape has changed significantly
since these two incidents and neither of the schemes
described above would be permissible now (in the
particular forms in which they existed).
In 1991 Safe Home Income Plans (SHIP) was
established as a self-regulatory body for equity release
products with a code of conduct that required:
l all plans to carry a ’no negative equity guarantee’ (a
guarantee provided by some providers that they will
bear the difference if the debt exceeds the value of
the property),
l all contracts to require customers to obtain legal
advice, and
l disclosure of the benefits, obligations, variables,
limitations and costs of equity release products.
l From October 2004, the United Kingdom’s Financial
Services Authority (FSA) has regulated mortgages,
including reverse mortgages. In particular, in the
new regime reverse mortgages are considered to be
higher risk and, accordingly, the FSA provides
extensive guidance relating to the sale of these
products to protect vulnerable older consumers. The
regulations apply to organisations that provide,
administer, advise on or arrange mortgages but
exclude (in some circumstances) solicitors,
conveyancers and financial counsellors (as well as
businesses which provide information as opposed to
advice). The legislation now includes:
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

l Product regulation This requires disclosure

„÷œ¸¸™ ¢¨¸¢›¸¡¸Ÿ¸ À ƒ¬¸ˆ½Å ÷¸í÷¸ ¤¸¿š¸ˆÅ ˆÅú œ¸»£ú ‚¨¸¢š¸ ˆ½Å ™¸¾£¸›¸ ÷¸˜¸¸ throughout the life of the mortgage including
¥¸¸Š¸÷¸ ¨¸ ]¸¸½¢‰¸Ÿ¸¸½¿ ˆÅú ¨¡¸¸‰¡¸¸ ‚¸¾£ \¸½÷¸¸¨¸¢›¸¡¸¸¿ ¢]¸›¸Ÿ¸½¿ ŠÏ¸íˆÅ¸½¿ ˆÅ¸½ ¬¸¥¸¸í illustrations of costs and risks and warnings
¥¸½›¸½ ˆ½Å ¢¥¸‡ ˆÅí¸ ]¸¸÷¸¸ í¾, ¡¸¢™ ¨¸½ ‚¬¸º£®¸¸ ‚›¸ºž¸¨¸ ˆÅ£÷¸½ í¸½¿ encouraging consumers to seek advice if they are at
all unsure.

œ¸£¸Ÿ¸©¸Ä ˆ½Å ¢¥¸‡ ¢¨¸¢›¸¡¸Ÿ¸ ‡¨¸¿ ¢¤¸\¸¸½¢¥¸‡¿ À ƒ¬¸¬¸½ ¡¸í ¬¸º¢›¸¢©\¸÷¸ ¢ˆÅ¡¸¸ l Regulation of advice and intermediaries This
]¸¸÷¸¸ í¾ ¢ˆÅ „÷œ¸¸™ ŠÏ¸íˆÅ ˆ½Å ¢¥¸‡ „œ¸¡¸ºÆ÷¸ í¾ („™¸í£µ¸¸˜¸Ä, ¬¸¥¸¸íˆÅ¸£ includes requirements to ensure that the product is
suitable for the consumer (for example, the adviser
ˆÅ¸½ ©¸º³ Ÿ¸½¿ ƒ¬¸ œ¸£ ¢¨¸\¸¸£ ˆÅ£›¸¸ í¸½÷¸¸ í¾ ¢ˆÅ Æ¡¸¸ ˆÅ¸½ƒÄ ƒ¢Æ¨¸’ú ¢£¥¸ú]¸ is required to initially consider whether any equity
„÷œ¸¸™ ŠÏ¸íˆÅ ˆÅú ¢¨¸î¸ú¡¸ œ¸¢£¢¬˜¸¢÷¸¡¸¸½¿ Ÿ¸½¿ „œ¸¡¸ºÆ÷¸ í¾ ‚¸¾£ ÷¸¤¸ ‚›¡¸ release product is appropriate in the financial
circumstances of the consumer and then also
‚›¸½ˆÅ Ÿ¸ºÓ¸½¿ œ¸£ ‚¸¾£ „÷œ¸¸™ ˆÅ¸ ]¸¸¿\¸½ œ¸£‰¸½ ¥¸¸ž¸¸½¿ œ¸£ œ¸”õ›¸½ ¨¸¸¥¸½ œÏž¸¸¨¸¸½¿ consider a number of other issues including the
œ¸£ ž¸ú ¢¨¸\¸¸£ ˆÅ£÷¸¸ í¾ ) effect of the product on means tested benefits).
ƒ¬¸Ÿ¸½¿ œÏ¢©¸®¸µ¸ ‚¸¾£ ™®¸÷¸¸ ˆÅú ž¸ú ]¸³£÷¸ í¸½÷¸ú í¾ ¢]¸¬¸Ÿ¸½¿ ¨¡¸¸œ¸¸£, ˆÅ£
There are also training and competency
‚¸¾£ œ¸½¿©¸›¸ œ¸½¢\¸™¢Š¸¡¸¸½¿ ‚¸¾£ í¸½Ÿ¸ ¢£¨¸]¸Ä›¸ ¡¸¸½]¸›¸¸‚¸½¿ ˆÅú ž¸ú ]¸¸¿\¸ ˆÅú requirements that include examination
]¸¸÷¸ú í¾ ƒ›¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ¬¸ºš¸¸£¸½¿ ˆ½Å ¤¸¸¨¸]¸»™, ƒ¢Æ¨¸’ú ¢£¥¸ú]¸ „÷œ¸¸™¸½¿ ˆÅú requirements in trading down, tax and pension
implications and home reversion schemes. Despite
Š¸¥¸÷¸ ¢¤¸ÇÅú ¨¸¸¥¸ú ¬¸Ÿ¸¬¡¸¸‡¿ œ¸¾™¸ í¸½ £íú íÿ ‡ûҬ¸‡ ׸£¸ Š¸ºœ¸\¸ºœ¸ these regulatory reforms, problems of mis-selling of
÷¸£úˆ½Å ¬¸½ ˆÅú Š¸ƒÄ ©¸¸¢œ¸¿Š¸ ¬¸½ ±¸¸÷¸ íº‚¸ ¢ˆÅ ¡¸»›¸¸ƒ’½” ¢ˆ¿ÅŠ¸”Ÿ¸ Ÿ¸½¿ 70 equity release products appear to persist. A mystery
œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ „÷œ¸¸™ „œ¸¥¸¤š¸ˆÅ÷¸¸Ä, ¬¨¸÷¸¿°¸ ¢¨¸î¸ú¡¸ ¬¸¥¸¸íˆÅ¸£ shopping exercise undertaken by the FSA revealed
that more than 70 per cent of product providers,
‚¸¾£ ¤¸¿š¸ˆÅ ¤Ï¸½ˆÅ£ ‚œ¸›¸½ ŠÏ¸íˆÅ¸½¿ ˆ½Å „÷œ¸¸™ ˆÅú „œ¸¡¸ºÆ÷¸÷¸¸ ˆÅ¸ œ¸÷¸¸ independent financial advisers and mortgage
¥¸Š¸¸›¸½ ˆ½Å ¢¥¸‡ œ¸¡¸¸¿Äœ÷¸ ¨¸¸¿¢Ž÷¸ ¬¸»\¸›¸¸ ‡ˆÅ°¸ ›¸íì ˆÅ£÷¸½ í¾¸, ‚¸¾£ 60 brokers in the United Kingdom did not gather
enough relevant information about their customers
œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ǽÅ÷¸¸‚¸½¿ ›¸½ ¬¸»¢\¸÷¸ ¢ˆÅ¡¸¸ ¢ˆÅ „›¸ˆ½Å ¬¸¥¸¸íˆÅ¸£¸½¿ ›¸½
to assess their suitability for the product, and more
ƒ¢Æ¨¸’ú ¢£¥¸ú]¸ ˆÅú í¸¢›¸¡¸¸½¿ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ›¸íì ¤¸÷¸¸¡¸¸ A than 60 per cent of the mystery shoppers reported
that their advisers had not explained the downsides
of equity release.
‚Ÿ¸£úˆÅ¸
„÷œ¸¸™ ¬¸Ÿ¸ú®¸¸ United States
Product review
¡¸Ô¸¢œ¸ ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ ‚Ÿ¸£úˆÅ¸ Ÿ¸½¿ ¨¸«¸Ä 1960 ¬¸½ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ¢¨¸¢ž¸››¸ Although various forms of reverse mortgages have
³œ¸¸½¿ Ÿ¸½¿ „œ¸¥¸¤š¸ ˆÅ£¸¡¸¸ ]¸¸ £í¸ í¾A 1989 ÷¸ˆÅ ]¸¤¸ ‚Ÿ¸£úˆÅ¸ ˆ½Å been offered in the United States since the 1960s, it
was not until 1989 when the United States
‚¸¨¸¸¬¸ ‡¨¸¿ ©¸í£ú ¢¨¸ˆÅ¸¬¸ ¢¨¸ž¸¸Š¸ ›¸½ ‚œ¸›¸½ ’í¸½Ÿ¸ ƒ¢Æ¨¸’ú ˆÅ›¨¸]¸Ä›¸ Department of Housing and Urban Development
Ÿ¸¸’ÄŠ¸½]¸’ (‡\¸ƒÄ¬¸ú‡Ÿ¸) ˆ½Å ¬¸¸˜¸ ¤¸¸]¸¸£ Ÿ¸½¿ œÏ¨¸½©¸ ¢ˆÅ¡¸¸ ÷¸¤¸ ƒ¬¸ „Ô¸¸½Š¸ (HUD) entered into the market with its Home Equity
Ÿ¸½¿ ž¸¸£ú ¨¸¼¢Ö íºƒÄA ‚Ÿ¸£úˆÅú ¬¸£ˆÅ¸£ ¬¸ž¸ú ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸¸½¿ ˆÅ¸ ¤¸úŸ¸¸ Conversion Mortgage (HECM) that the industry
underwent substantial growth. The US Government
ˆÅ£÷¸ú í¾ ¢]¸›í½¿ ‡\¸ƒÄ¬¸ú‡Ÿ¸ ˆÅ¸¡¸ÄÇÅŸ¸ ¢›¸¡¸Ÿ¸¸½¿ ˆ½Å ‚›¸º¬¸¸£ ¤¸›¸¸¡¸¸ í¸½÷¸¸ insures all reverse mortgage loans which are made
í¾A ¡¸í ¤¸úŸ¸¸ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£÷¸¸ í¾ ¢ˆÅ ŠÏ¸íˆÅ¸½¿ ˆ½Å †µ¸ „›¸ˆÅú ¬¸Ÿœ¸¢î¸¡¸¸½¿ under the terms of the HECM programme rules. This
insurance ensures that the consumers’ debts can
ˆ½Å Ÿ¸»¥¡¸ ¬¸½ ˆÅž¸ú ž¸ú ‚¢š¸ˆÅ ›¸íì í¸½ ¬¸ˆÅ÷¸½ íÿ ‚¸¾£ ŠÏ¸íˆÅ¸½¿ ˆÅ¸½ †µ¸ œ¸£ never exceed the value of their properties and that
÷¸¤¸ ÷¸ˆÅ ¢›¸¡¸¢Ÿ¸÷¸ ž¸ºŠ¸÷¸¸›¸ ¢Ÿ¸¥¸÷¸¸ £í÷¸¸ í¾ ]¸¤¸ ÷¸ˆÅ „¬¸ ¬¸Ÿœ¸¢î¸ Ÿ¸½¿ consumers continue to receive any regular
¢›¸¨¸¸¬¸ ˆÅ£÷¸½ íÿ, \¸¸í½ payments from the loan as long as they live in the
property, regardless of:

os ¢ˆÅ÷¸›¸ú ž¸ú ‚¨¸¢š¸ ÷¸ˆÅ Ÿ¸ˆÅ¸›¸ Ÿ¸½¿ £í½¿, how long they live in the property,
¬¸Ÿœ¸¢î¸ dh Ÿ¸»¥¡¸ D;k gksrk gSA what happens to the property’s value, and
†µ¸™¸÷¸¸ ˆ½Å ¬¸¸˜¸ D;k what happens to the provider who provided
the loan.

110
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111
Report on Trend and Progress of Housing in India, 2008
The cost for this government guarantee is borne
collectively by consumers who pay an insurance
premium to HUD. The HECM programme rules mandate
that lenders:
can only change variable interest rates once a year
(in line with the one-year Treasury rate change) and
subject to a limit of two percentage points per year
and five points over the life of the loan,
require consumers to obtain independent advice
before signing a contract, and
do not impose prepayment or loan cancellation
penalties.
There are also reverse mortgages and other equity
release products available in the United States that are
not government insured. For instance, Fannie Mae
facilitates both a traditional reverse mortgage and an
’equity share’ option in which the consumer may obtain
an additional loan in return for assigning 10 per cent of
the property value of the home at the time the loan
matures, when the homeowner sells the property or
dies. {Fannie Mae is a private company (since
nationalized in wake of credit crisis) which is chartered
by the United States Congress to fulfil a public mission of
providing low-cost mortgage funds to Americans with
low, moderate or middle incomes. It does not lend
money to consumers, but buys mortgages from a
national network of approved providers who do
originate mortgage loans.} These loans are offered by
Fannie Mae approved providers and purchased from the
provider by Fannie Mae in the secondary market.
Applicants for the loans provided by Fannie Mae
providers must complete approved counselling prior to a
loan being granted.
Finally, SAMs are also available, pursuant to which for
example, if the consumer chooses to borrow against 60
per cent of the home’s equity, the consumer will owe 60
per cent of the home’s value when it is sold. To date,
SAMs have been less popular than reverse mortgages,
reportedly for reasons similar to those described in
relation to the United Kingdom; that is, there is a lower
consumer acceptance of this type of product and
institutional investors’ appetite for residential real estate
instruments is still unknown.
There have been a number of problems associated with
misleading and deceptive conduct in relation to equity
release products in the United States. In the last decade
there have been a series of legal proceedings brought by
consumers against mortgage providers of defrauding
them out of equity in their houses. For instance, a group
proceeding was issued on behalf of approximately 1500
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¢›¸£ú®¸µ¸ ¢ˆÅ¡¸¸ ]¸¤¸¢ˆÅ û½Å”£¥¸ ’ï½” ˆÅŸ¸ú©¸›¸ (‡ûÅ’ú¬¸ú) Š¸¾£¤¸ÿ¢ˆ¿ÅŠ¸
œÏ¸½¨¸¸”£¸½¿ ׸£¸ ‚›¸ºœ¸¸¥¸›¸ ˆÅú ¢›¸Š¸£¸›¸ú ˆÅ£÷¸¸ í¾A
112
Report on Trend and Progress of Housing in India, 2008
consumers against one provider alleging that reverse
mortgages required payment of excessive and hidden
fees that concealed the true cost of the loan, and that
resulted in consumers being charged tens of thousands
of dollars in artificially inflated loan fees. This
proceeding was settled out of court. Another proceeding
concerned shared appreciation agreements in which the
provider allegedly obtained an unconscionably high
share of the homes’ appreciated value and charged the
cost of an annuity against the loan balance from the
beginning of the loan, despite the fact that the
consumers would not be entitled to a payout from the
annuity for at least the first six years.
There have also been a number of scams associated
with the industry. For instance, one financial service firm
has been subject to legal proceedings by both providers
and consumers because it allegedly defrauded
consumers by telling them they would receive reverse
mortgages, but instead took out conventional loans
which consumers could not repay. Another scam
involved ’estate planning’ firms charging consumers
high fees (between 6 per cent and 10 per cent of the
mortgage proceeds) for referring a consumer to a
provider. In relation to this last scam, the government
regulator took legal action against six estate planning
firms and also directed providers to cease dealing with
companies that charged these fees.
Regulation
Equity release products are subject to a range of federal,
state and self regulatory regimes in the United States.
As previously stated, the US Federal Government
regulates compliance with the HECM rules for reverse
mortgages made under HECM scheme. However, while
this regulation covers reverse mortgages that are
government insured, it does not cover other types of
equity release products or reverse mortgages that are
not insured by the US Government. State legislative
regimes also regulate the products to varying degrees
(but it is beyond the scope of this paper to provide
details of these regimes). Further, Fannie Mae has
issued revised policies regarding origination fees,
quality control and other issues which must be followed
by Fannie Mae approved providers. In addition, federal
Truth-in-Lending law requires providers to disclose a
’Total Annual Loan Cost’, combining all of a reverse
mortgage’s costs into a single annual average rate.
Banking regulators oversee bank provider disclosure of
information under the Truth-in-Lending legislation,
while the Federal Trade Commission (FTC) monitors
nonbank providers’ compliance.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

New Zealand
›¡¸»]¸ú¥¸ÿ”
„÷œ¸¸™ ¬¸Ÿ¸ú®¸¸ Product review

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¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ˆÅú ¢œ¸Ž¥¸½ 36 Ÿ¸¸í Ÿ¸½¿ ¤¸íº÷¸ ÷¸½]¸ú ¬¸½ ¨¸¼¢Ö íºƒÄ í¾ ›¡¸»]¸ú¥¸ÿ” Ÿ¸½¿
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(¬¸¸Ÿ¸¸›¡¸÷¸¸ ‡ˆÅ ¨¸«¸Ä ˆ½Å ¤¸¸™) ¤¸[õ½ íº‡ Ÿ¸»¥¡¸ ¨¸¸œ¸¬¸ ‰¸£ú™ ¬¸ˆÅ÷¸¸ í¾
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›¡¸»]¸ú¥¸ÿ” Ÿ¸½¿, ]¸í¸¿ ¡¸½ „÷œ¸¸™ „œ¸¥¸¤š¸ íÿ, ‚›¸½ˆÅ¸½¿ ŠÏ¸íˆÅ¸½¿ ˆÅ¸½ ¡¸í ]¸¸›¸ˆÅ¸£ú
›¸íì ˜¸ú ¢ˆÅ ‚¤¸ „›¸ˆÅ¸ Ÿ¸ˆÅ¸›¸ œ¸£ ˆÅ¸½ƒÄ ¬¨¸¸¢Ÿ¸÷¨¸ ›¸íì í¾, ‚¸¾£ Ÿ¸ˆÅ¸›¸ ˆÅ¸½ ¨¸¸œ¸¬¸
‰¸£ú™›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ ¨¸«¸Ä ˆ½Å ¤¸¸™ †µ¸ ›¸íì ¥¸½ ¬¸ˆ½Å, Ÿ¸ˆÅ¸›¸ ‰¸¸¥¸ú ˆÅ£›¸¸ œ¸”õ¸
ŠÏ¸íˆÅ¸½¿ ›¸½ ¬¸Ÿœ¸¢î¸ Ÿ¸½¿ ‚œ¸›¸ú Ÿ¸»¥¸ ƒ¢Æ¨¸’ú ž¸ú Š¸¨¸¸¿ ™ú A
’︄¢¤Ï]¸ ¢”¥¸¸¡¸’½ ›¡¸»]¸ú¥¸¾¿” ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ›¸½ 31 ¢™¬¸Ÿ¤¸£, 2006 ˆÅ¸½
¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ˆ½Å ¢ˆÅ¡¸½ Š¸‡ ‚š¡¸¡¸›¸ ˆ½Å ‚›¸º¬¸¸£, ¢]¸¬¸Ÿ¸½¿ 4,500 ¬¸½ ‚¢š¸ˆÅ
†µ¸ ©¸¸¢Ÿ¸¥¸ ˜¸½ ]¸¸½ ¥¸Š¸ž¸Š¸ ˆºÅ¥¸ 227 ¢Ÿ¸¢¥¸¡¸›¸ ”¸¥¸£ ˆ½Å ˜¸½, ¢œ¸Ž¥¸½ ¤¸¸£í
Ÿ¸¸í ˆ½Å ™¸¾£¸›¸ ™ºŠ¸º›¸¸ í¸½ Š¸¡¸¸ í¾ Ÿ¸º‰¡¸ ¢›¸«ˆÅ«¸¸½ô ˆÅ¸ ¬¸¸£¸¿©¸ ¢›¸Ÿ›¸ œÏˆÅ¸£ í¾ À
2006 ¬¸½ ¤¸¸]¸¸£ ™ºŠ¸º›¸½ ¬¸½ ž¸ú ‚¢š¸ˆÅ ¤¸[õ Š¸¡¸¸,
The only major equity release product currently
available in New Zealand is the reverse mortgage. The
reverse mortgage sector has rapidly grown in the recent
past. There is another equity release product available in
New Zealand called a buy-back scheme. In a buy-back
scheme the consumer agrees to sell their home to a
scheme promoter in exchange for debts being repaid
and to then buy it back later (usually a year) at a higher
price. Buy-back schemes are attractive to people who
are in financial difficulty and who want to access, in
cash, some of the equity in their homes. In New
Zealand, where these products have been, and are still,
available many consumers were unaware that they no
longer owned their homes, and being unable to obtain a
loan one year later to buy back the homes, were evicted.
The consumers also lost their original equity in the
property
As per the Trowbridge Deloitte New Zealand Reverse
Mortgage study the reverse mortgage market at 31
December 2006 consisted of more than 4,500 loans with
a total book of almost $227 million, with the market
having doubled in the last twelve months.
A summary of the key findings are:

†¢µ¸¡¸¸½¿ ›¸½ †µ¸ ž¸ºŠ¸÷¸¸›¸ ˆ½Å ¬¸Ÿ¸¡¸ ˆºÅ¥¸ ‚›¸ºŸ¸÷¡¸ ˆÅ¸ ¥¸Š¸ž¸Š¸ 60 market more than doubled in size over 2006
œÏ¢÷¸©¸÷¸ ˆÅ¸ ‚¸í£µ¸ ¢ˆÅ¡¸¸, borrowers draw around 60 per cent of allowable
facility at the time of settlement
¥¸Š¸ž¸Š¸ ¬¸ž¸ú †µ¸ œ¸¢£¨¸÷¸úÄ ¤¡¸¸]¸ ‡ˆÅ Ÿ¸º©÷¸ í¸½÷¸½ íÿ, ¢]¸›¸Ÿ¸½¿ nearly all loans are variable interest lump sums,
›¸Š¸µ¡¸ ‚¸¡¸ í¸½÷¸ú í¾, with negligible income stream
70-79s largest age bracket, however 60-70 year
70-79 ¬¸¤¸¬¸½ ¤¸”õ¸ ‚¸¡¸º ¨¸Š¸Ä, í¸¥¸¸¿¢ˆÅ, 60-70 ‚¸¡¸º ¨¸Š¸Ä Ÿ¸½¿
olds are a growth segment.
¨¸¼¢Ö í¸½÷¸ú £í÷¸ú í¾

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‚›¸º¬¸¸£ †µ¸™¸¸÷¸¸ ׸£¸ ¡¸¸½]¸›¸¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ Ÿ¸º‰¡¸ ¬¸»\¸›¸¸ ¬œ¸«’ ˆÅ£›¸ú í¸½÷¸ú í¾,
¬¸º¢›¸¢©\¸÷¸ ˆÅ£÷¸¸ í¾ ¢ˆÅ ŠÏ¸íˆÅ ¡¸¸½]¸›¸¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ í¸½›¸½ ¬¸½ œ¸í¥¸½ ¬¨¸÷¸¿°¸ ¢¨¸¢š¸ˆÅ
¬¸¥¸¸í ¥¸½ ‚¸¾£ ŠÏ¸íˆÅ ˆÅ¸½ ‚œ¸›¸½ ¢í÷¸ ˆÅú £®¸¸ ˆ½Å ¢¥¸‡ ¬¸Ÿœ¸¢î¸ œ¸£ ‚œ¸›¸½
‚¢š¸ˆÅ¸£ ˆ½Å ¢¥¸‡ ¢©¸ˆÅ¸¡¸÷¸ ˆÅ£›¸½ ˆÅ¸ ‚¢š¸ˆÅ¸£ í¸½÷¸¸ í¾ ˆÅ¸›¸»›¸ ˆ½Å ÷¸í÷¸
¥¸½›¸™½›¸ ˆÅú ˆÅ¸£Ä¨¸¸ƒÄ ˆÅ¸½ œ¸º›¸À ‰¸¸½¥¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ ¡¸¢™ ›¡¸¸¡¸¸¥¸¡¸ „¬¸½
™Ÿ¸›¸ˆÅ¸£ú ¬¸Ÿ¸^¸½ ¢ûÅ¥¸í¸¥¸ ›¡¸»]¸ú¥¸ÿ” ¬¸£ˆÅ¸£ ƒ¢Æ¨¸’ú ¢£¥¸ú]¸ ¡¸¸½]¸›¸¸‚¸½¿
ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ „Ô¸¸½Š¸ ˆ½Å ¬¸¸˜¸ ‡ˆÅ ¨¡¸¨¸í¸£ ¬¸¿¢í÷¸¸ ÷¸¾¡¸¸£ ˆÅ£ £íú
í¾ ƒ¬¸ ¬¸¿¢í÷¸¸ Ÿ¸½¿ ‡½¬¸½ Ÿ¸ºÓ½ ]¸¾¬¸½ ¢›¸¡¸Ÿ¸¸½¿ ‡¨¸¿ ©¸÷¸¸½ô ˆÅ¸ œÏˆÅ’úˆÅ£µ¸, ]¸¸½¢‰¸Ÿ¸
œÏ¤¸¿š¸›¸ œÏ¢ÇÅ¡¸¸‡¿ ‚¸¾£ ¨¸¬¸»¢¥¸¡¸¸¿, ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸½ ]¸¸‡¿Š¸½ A
Regulation
Buy-back schemes are now subject to legislation which
requires the provider to disclose key information about
the scheme, ensures that the consumer receives
independent legal advice before entering into a scheme,
and provides the consumer with the right to lodge a
caveat over the property to protect their interest. The
legislation also allows the transaction to be reopened if
the court considers it to be oppressive. More generally,
the New Zealand government is developing a code of
practice with industry to cover equity release schemes.
The code will cover issues such as disclosure of terms
and conditions, risk management practices and
recoveries.

113
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
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114
Report on Trend and Progress of Housing in India, 2008
Australia
Australia is another country where the equity release
products are quite popular. The two main types of equity
release products for older people are reverse mortgages
and home reversion schemes. Home reversion schemes
allow one to sell all or part of his home at a discounted
price usually between 35 per cent and 60 per cent of
what the home is worth. But one has the right to keep
living in his home until his death or upon deciding to
move out.
Equity release products for people younger than 55 have
recently been launched in Australia. These are called
shared appreciation mortgages (or SAMs). Where one
can pay reduced or no interest on a loan, in return for
giving up a share of the capital gain in the home.
More recently, in Australia a home reversion scheme run
by Money for Living went into administration. ASIC is
currently involved in legal proceedings alleging that
Money for Living was engaged in misleading or
deceptive conduct; and a credit union, Transcomm,
which offers a reverse mortgage, entered into an
enforceable undertaking with ASIC in relation to
misleading and deceptive conduct. ASIC is working
closely with industry, including the Seniors Australian
Equity Release Association of Lenders (or SEQUAL) to
promote best practice and reduce the risks for
consumers and will monitor the marketplace closely to
identify misleading, deceptive or unconscionable
conduct in the sales of these products.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
‚š¡¸¸¡¸ 8 À £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅú ž¸»¢Ÿ¸ˆÅ¸
Chapter 8 : Role of National Housing Bank
8.1 ž¸»¢Ÿ¸ˆÅ¸
ž¸¸£÷¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ©¸ú«¸Ä ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸ ˆ½Å ³œ¸ Ÿ¸½¿ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ
ˆÅú ¬˜¸¸œ¸›¸¸ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ‚¢š¸¢›¸¡¸Ÿ¸, 1987 ˆÅ½ ÷¸í÷¸ 9 ]¸º¥¸¸ƒÄ,
1988 ˆÅ¸½ ˆÅú Š¸ƒÄ ˜¸ú A £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ž¸¸£÷¸ú¡¸ ¢£]¸¨¸Ä ¤¸ÿˆÅ ˆ½Å ¬¸¿œ¸»µ¸Ä
¬¨¸¸¢Ÿ¸÷¨¸ Ÿ¸½¿ í¾ £¸.‚¸. ¤¸ÿˆÅ ˆ½Å ÷¸í÷¸ ¤¸ÿˆÅ ˆÅ¸ ¬¸¸Ÿ¸¸›¡¸ ‚š¸ú®¸µ¸, ¢›¸™½Ä©¸›¸ ‚¸¾£
œÏ¤¸¿š¸›¸ ‡ˆÅ ¢›¸™½©¸ˆÅ Ÿ¸¿”¥¸ ׸£¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾A £¸.‚¸. ¤¸¾ˆÅ ˆÅ¸ Ÿ¸º‰¡¸
ˆÅ¸¡¸¸Ä¥¸¡¸ ›¸ƒÄ ¢™¥¥¸ú Ÿ¸½¿ í¾ A
‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ©¸ú«¸Ä ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸ ˆ½Å ³œ¸ Ÿ¸½¿ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ‚œ¸›¸½
¢¨¸¢ž¸››¸ ¢¨¸î¸ú¡¸ ‚¸¾£ Š¸¾£-¢¨¸î¸ú¡¸ ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸¸½¿ ˆ½Å ׸£¸ ž¸¸£÷¸ ˆ½Å ›¸¸Š¸¢£ˆÅ¸½¿ ˆÅú
‚¸¨¸¸¬¸ ¬¸¿¤¸¿š¸ú ]¸³£÷¸¸½¿ ˆÅ¸½ œ¸»£¸ ˆÅ£÷¸¸ £í¸ í¾ ¢]¸›¸Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ ´¢«’ ¬¸½ ˆÅŸ¸]¸¸½£
¨¸Š¸¸½ô/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½ô ˆÅú ¢¨¸©¸½«¸ š¡¸¸›¸ ¢™¡¸¸ ]¸¸÷¸¸ í¾A ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, ¤¸ÿˆÅ
‚œ¸›¸½ ¢¨¸¢ž¸››¸ ›¸‡-›¸‡ „÷œ¸¸™¸½¿ ‚¸¾£ „™¸£úˆ¼Å÷¸ ¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½
ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¤¸¸]¸¸£ ˆÅ¸½ ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¡¸¸¬¸
ˆÅ£÷¸¸ £í¸A ‚¸¨¸¸¬¸ ®¸½°¸ ˆ½Å ¢¨¸ˆÅ¸¬¸ ˆ½Å ¢¥¸‡ ‚Š¸¥¸½ ˆÅ™Ÿ¸ ˆ½Å :i Ÿ¸½¿,
‡›¸‡\¸¤¸ú-£½]¸ú”½Æ¬¸, ™½©¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆÅ¸ Ÿ¸»¥¡¸ ¬¸»\¸ˆÅ¸¿ˆÅ œ¸í¥¸ú
¤¸¸£ ÷¸¾¡¸¸£ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ ¢]¸¬¸ˆÅú œ¸¸¡¸¥¸’ œ¸¢£¡¸¸½]¸›¸¸ ™½©¸ ˆ½Å 5 ©¸í£¸½¿ Ÿ¸½¿
]¸º¥¸¸ƒÄ 2007 Ÿ¸½¿ ‚¸¾œ¸\¸¸¢£ˆÅ :i ¬¸½ ©¸º³ ˆÅú Š¸ƒÄA ‚¸¨¸¸¬¸ ˆÅ¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ
í¸½÷¸½ íº‡, ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú œ¸¢£ˆÅ¥œ¸›¸¸ £¸.‚¸. ¤¸ÿˆÅ ˆ½Å ˆÅ¸£¸½¤¸¸£ Ÿ¸½¿ œÏŸ¸º‰¸
í¾A ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú Ÿ¸¸¿Š¸¸½¿ Ÿ¸½¿ ¬¸í¸¡¸÷¸¸ ˆ½Å ¢¥¸‡, £¸.‚¸. ¤¸ÿˆÅ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸
¬¸¬˜¸¸›¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸ú¡¸ Ÿ¸¸ƒÇŸ½-¢¨¸î¸ „œ¸¥¸¤š¸ ˆÅ£÷¸¸ £í¸ í¾A ƒ¬¸ ¨¸«¸Ä,
‚¸¨¸¸¬¸ú¡¸ Ÿ¸¸ƒÇŸ½-¢¨¸î¸ ˆÅ¸½ ›¸‡ ‚¸¾£ ¬¸¿¨¸š¸Ä›¸©¸ú¥¸ ‚¸¨¸¸¬¸ ™¸½›¸¸½¿ ˆ½Å ¢¥¸‡ š¸›¸
ˆÅú ¬¸¿¬¨¸úˆ¼Å¢÷¸¡¸¸½¿ ‡¨¸¿ ¬¸¿¢¨¸÷¸£µ¸ ˆ½Å ˆÅ¸£µ¸ ÷¸½]¸ Š¸¢÷¸ ¢Ÿ¸¥¸úA ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸
†µ¸, ¢]¸¬¸½ ¢œ¸Ž¥¸½ ¨¸«¸Ä ©¸º³ ¢ˆÅ¡¸¸ Š¸¡¸¸, ¡¸¸½]¸›¸¸ ˆ½Å ‚›÷¸Š¸Ä÷¸ ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿
ˆ½Å ¢¥¸‡ ›¸ƒÄ ¢™¥¥¸ú, í¾™£¸¤¸¸™ ‚¸¾£ \¸¿”úŠ¸[õ Ÿ¸½¿ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ œ¸£¸Ÿ¸©¸Ä ˆ½Å›Í
‰¸¸½¥¸½ Š¸‡ A ±¸¸›¸ ‚¸š¸¸¢£÷¸ ¢¨¸ˆÅ¸¬¸ ˆ½Å ¢¥¸‡, ¤¸ÿˆÅ ׸£¸ ‚¸¨¸¸¬¸ ‡¨¸¿ ‚¸¨¸¸¬¸
¢¨¸î¸ ¬¸¿¤¸¿š¸ú ¬¸»\¸›¸¸ ˆÅú ‚Ô¸÷¸›¸, ¢›¸«œ¸®¸ ‚¸¾£ ¬¸¿œ¸»µ¸Ä ]¸¸›¸ˆÅ¸£ú œÏ¸œ÷¸ í¸½›¸½ ˆ½Å
‡ˆÅ ¢¨¸©¨¸¬¸›¸ú¡¸ 踸½÷¸ ˆ½Å ³œ¸ Ÿ¸½¿ "‡›¸‡\¸¤¸ú í¸„¢¬¸¿Š¸ ƒ›ûŸ½ ƒ¿¢”¡¸¸" ›¸¸Ÿ¸ ¬¸½
‡ˆÅ í¸„¢¬¸¿Š¸ ƒ›ûŸŸ¸½Ä©¸›¸ œ¸¸½’Ä¥¸ ˆÅ¸ ¢¨¸ˆÅ¸¬¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ A
8.2 £¸.‚¸. ¤¸ÿˆÅ ˆÅú ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™ˆÅ÷¸¸
¤¸ÿˆÅ ˆÅú ¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ ¢›¸¢š¸ ‚¸¾£ ¥¸¸ž¸ Ÿ¸½¿ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ¨¸¼¢Ö ]¸¸£ú
£íú A í¸¥¸¸¿¢ˆÅ, £¸.‚¸. ¤¸ÿˆÅ ˆÅú ˆºÅ¥¸ ‚¸¢¬÷¸¡¸¸½¿ Ÿ¸½¿ ¢œ¸Ž¥¸½ ¨¸«¸Ä
21,223.39 ². ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ ƒ¬¸ ¨¸«¸Ä 19,897.90 ². Ÿ¸¸Ÿ¸»¥¸ú ˆÅŸ¸ú
‚¸ƒÄ í¾ A ¤¸ÿˆÅ ˆÅú ¢œ¸Ž¥¸½ ™¸½ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸ ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™ˆÅ÷¸¸ ›¸ú\¸½
™©¸¸Ä¡¸ú Š¸ƒÄ í¾ À
115
Report on Trend and Progress of Housing in India, 2008
8.1 Introduction
National Housing Bank was incorporated on July 9, 1988
under the National Housing Bank Act, 1987 as the apex
financial institution for housing in India. NHB is wholly
owned by Reserve Bank of India. The general
superintendence, direction and management of the
affairs and business of NHB vest, under the Act, in a
Board of Directors. The Head Office of NHB is at New
Delhi.
As the apex financial institution for housing, NHB has
always catered to the need for housing of the Indian
citizens with focus on EWS/LIG categories through its
various financial and non-financial activities. During the
year, the Bank continued its effort to promote Indian
housing and housing finance market through extending
various innovative products and liberalised schemes. As
a further step towards development of housing sector,
NHB-RESIDEX, the first residential housing price index
in the country with its pilot project in 5 cities of India was
formally launched in July 2007. Being regulator of
housing, the concept of Affordable Housing is at the core
of NHB’s functioning. To support the affordable housing
requirements, NHB has been extending housing micro-
finance to the MFIs. This year, the housing micro-finance
gathered momentum with sanctions and disbursements
for both new and incremental housing. The Reverse
Mortgage Loan, which was launched last year added to
its portfolio by launch of counselling centres for senior
citizens at New Delhi, Hyderabad and Chandigarh during
the year. To add to the knowledge based development,
a Housing Information Portal titled “NHB Housing Info
India” was developed by the Bank to serve as a reliable
source for updated, unbiased and complete information
on housing and housing finance.
8.2 Financial Performance of NHB
The net owned fund and profit of the bank continued
to expand during the year. However, the total assets
of NHB declined from Rs. 21,223.39 crore previous
year to Rs. 19,897.90 crore this year. The financial
performance of the Bank during the last two years is
as below:
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

÷¸¸¢¥¸ˆÅ¸ 17 À £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅú ¢¨¸î¸ú¡¸ ¢›¸«œ¸¸™ˆÅ÷¸¸

Table 17: Financial Performance of NHB (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
(Rs. in crore)

œÏˆ¼Å¢÷¸ Type 2006-07 2007-08

¢›¸¨¸¥¸ ¬¨¸¸¢š¸ˆ¼Å÷¸ ¢›¸¢š¸ Net Owned Fund 1,829.19 1,999.00

¬¸¿¢¨¸÷¸£µ¸ Disbursement 5,671.60 9,036.38
dqy vfLr;ksa Total Assets 21,223.39 19,897.90
ˆÅ£ œ¸»¨¸Ä ¥¸¸ž¸ Profit before Tax 183.69 257.60
ˆÅ£ œ¸©\¸¸÷¸ ¥¸¸ž¸ Profit after Tax 114.31 169.70
œ¸»¿]¸ú œ¸¡¸¸Äœ÷¸÷¸¸ ‚›¸ºœ¸¸÷¸ (œÏ¢÷¸©¸÷¸) Capital Adequacy Ratio (per cent) 22.58 24.51
ƒ¢Æ¨¸’ú œ¸£ ¥¸¸ž¸ (œÏ¢÷¸©¸÷¸) Return on Equity (per cent) 25.40 37.70
‚¸¾¬¸÷¸ ‚¸¢¬÷¸¡¸¸½¿ œ¸£ ¥¸¸ž¸(œÏ¢÷¸©¸÷¸) Return on average asset (per cent) 0.54 0.84

\¸¸’Ä 2 À ¢œ¸Ž¥¸½ œ¸¸¿\¸ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸ £¸.‚¸.¤¸ÿˆÅ ˆÅú ˆºÅ¥¸ ‚¸¢¬÷¸¡¸¸¿- vkjs[kh; ifjn`';
Chart 2: Total Assets of NHB in the last five years: A Graphical Overview (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
(Rs. in crore)

25,000.00
21,223.39
18,947.91
20,000.00
19,588.82 19,897.90
15,000.00

13,107.51
10,000.00

5,000.00

0.00
2003-04 2004-05 2005-06 2006-07 2007-08

116
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

8.2.1 ¬¸¿¬¸¸š¸›¸¸½¿ ˆÅ¸ ]¸º’¸¨¸ (¬¸¿ŠÏíµ¸) 8.2.1 Resource Mobilization

The Bank has made both short term and long term
¤¸ÿˆÅ ›¸½ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ¤¸ÿˆÅ ›¸½ ¤¸ÿˆÅ¸½¿, ž¸¸£÷¸ú¡¸ ]¸ú¨¸›¸ ¤¸úŸ¸¸ ¢›¸Š¸Ÿ¸ ‚¸¾£ borrowings from banks, LIC of India and through
¨¸¸¢µ¸¢]¡¸ˆÅ œ¸½œ¸£ ]¸¸£ú ˆÅ£ˆ½Å ‚¥œ¸ˆÅ¸¥¸ú›¸ ‚¸¾£ ™ú‹¸ÄˆÅ¸¥¸ú›¸ †µ¸ ¢¥¸¡¸½ issue of Commercial Papers during the year. Long
™ú‹¸ÄˆÅ¸¥¸ú›¸ †µ¸ Ÿ¸º‰¡¸÷¸¸ ¤¸ÿˆÅ¸½¿ ¬¸½ œÏ¸œ÷¸ ˆÅú ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, ¤¸ÿˆÅ ›¸½ ¢¨¸¢ž¸››¸ term borrowings were made mainly by tapping
Term Loan facility from banks. During the year,
踸½÷¸¸½¿ ¬¸½ 12,109.45 ˆÅ£¸½”õ ². ]¸º’¸¡¸½ ƒ›¸Ÿ¸½¿ ¬¸½, 5,835.55 ˆÅ£¸½”õ ². ˆÅ¸ the Bank mobilised Rs. 12,109.45 crore from
¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ž¸ºŠ¸÷¸¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸, ƒ¬¸ œÏˆÅ¸£ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ¢¥¸¡¸½ Š¸‡ †µ¸¸½¿ ˆÅú various sources. Of these, an amount of Rs.
¢›¸¨¸¥¸ £¸¢©¸ 6,273.90 ˆÅ£¸½”õ ². ˜¸ú A 5,835.55 crore was repaid during the same year
with net borrowings during the year amounting to
Rs. 6,273.90 crore.
8.3 œ¸º›¸¢¨¸Äî¸ ž¸»¢Ÿ¸ˆÅ¸ ‡¨¸¿ ¢›¸«œ¸¸™ˆÅ÷¸¸
8.3 Refinance Role and Performance
8.3.1 ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, ¤¸ÿˆÅ ׸£¸ œ¸º›¸¢¨¸Äî¸ ‚¸¾£ œÏ÷¡¸®¸ ¢¨¸î¸ú¡¸ ¬¸¿¢¨¸÷¸£µ¸ ˆ½Å 8.3.1 During the year, the financial assistance extended
³œ¸ Ÿ¸½¿ 9,036.38 ˆÅ£¸½”õ ². ˆÅú ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ ™ú Š¸ƒÄ ¢]¸¬¸Ÿ¸½¿ ¬¸½ by the Bank in the form of refinance and direct
œ¸º›¸¢¨¸Äî¸ ¬¸¿¢¨¸÷¸£µ¸ ˆÅú £¸¢©¸ 8,586.89 ˆÅ£¸½”õ ². ˜¸ú A ¤¸ÿˆÅ ˆÅú finance disbursements amounted to Rs. 9,036.38
crore out of which refinance disbursements
¬˜¸¸œ¸›¸¸ í¸½›¸½ ˆ½Å ¤¸¸™ ¬¸½ ‚ž¸ú ÷¸ˆÅ ‡ˆÅ ¨¸«¸Ä Ÿ¸½¿ ¢ˆÅ¡¸¸ Š¸¡¸¸ ¡¸í amounted to Rs. 8,586.89 crore. This was the
¬¸¨¸¸Ä¢š¸ˆÅ ¬¸¿¢¨¸÷¸£µ¸ ˜¸¸ A ˆºÅ¥¸ œ¸º›¸¢¨¸Äî¸ ¬¸¿¢¨¸÷¸£µ¸ Ÿ¸½¿, 3,856.19 highest disbursement achieved in a single year
ˆÅ£¸½”õ ². ¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚›÷¸Š¸Ä÷¸ since the inception of the Bank. Of the total
refinance disbursements, Rs. 3,856.19 crore was
¬¸¿¢¨¸÷¸¢£÷¸ ¢ˆÅ¡¸½ Š¸‡ ]¸¸½ ¡¸¸½]¸›¸¸ ‚¸£¿ž¸ í¸½›¸½ ˆ½Å ¬¸Ÿ¸¡¸ ¬¸½ ‚¤¸ ÷¸ˆÅ
disbursed under the Golden Jubilee Rural Housing
¬¸¨¸¸Ä¢š¸ˆÅ ˜¸¸ A ¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ ˆ½Å Refinance Scheme (GJRHRS), also the highest
‚›÷¸Š¸Ä÷¸ ¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ ¬¸¿¢¨¸÷¸¢£÷¸ £¸¢©¸ ever since the launch of the Scheme. The
78.26 œÏ¢÷¸©¸÷¸ ‚¸¾£ ¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ disbursements to banks and HFCs under GJRHRS
accounted for 78.26 per cent and 21.54 per cent
ˆ½Å ‚›÷¸Š¸Ä÷¸ ˆºÅ¥¸ ¬¸¿¢¨¸÷¸£µ¸ 21.54 œÏ¢÷¸©¸÷¸ íº‚¸ œ¸¢£¡¸¸½]¸›¸¸ ¢¨¸î¸ of the total GJRHRS disbursements. Under the
ˆÅ¸¡¸ÄÇÅŸ¸ ˆ½Å ÷¸í÷¸ 819.50 ˆÅ£¸½”õ ². ˆÅ¸ ¬¸¿¢¨¸÷¸£µ¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¸½ Project Finance Program, disbursements
ˆºÅ¥¸ ¬¸¿¢¨¸÷¸£µ¸ ˆÅ¸ ¥¸Š¸ž¸Š¸ 9 œÏ¢÷¸©¸÷¸ í¾ 30.06.2008 ÷¸ˆÅ accounted for Rs.449.49 crore representing
¬¸Ÿ¸½¢ˆÅ÷¸ ³œ¸ ¬¸½ 41006.78 ˆÅ£¸½”õ ². ˆÅ¸ ¬¸¿¢¨¸÷¸£µ¸ íº‚¸ A about 5 per cent of the total disbursements.
Cumulative disbursals up to 30.06.2008 stood at
Rs 41006.78 crore.
8.3.2 ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸, ¤¸ÿˆÅ ׸£¸ œ¸º›¸¢¨¸Äî¸ ˆ½Å :i Ÿ¸½¿ ˆºÅ¥¸
8.3.2 During the year 2007-08, refinance aggregating
8,586.89 ˆÅ£¸½”õ ². ˆÅ¸ ¬¸¿¢¨¸÷¸£µ¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ A œ¸º›¸¢¨¸Äî¸ Rs. 8,586.89 crore was disbursed by the Bank.
¬¸¿¢¨¸÷¸£µ¸ Ÿ¸½¿ ¢œ¸Ž¥¸½ ¨¸«¸Ä ˆÅú ÷¸º¥¸›¸¸ Ÿ¸½¿ 56 œÏ¢÷¸©¸÷¸ ˆÅú ¨¸¼¢Ö íºƒÄ A The growth in refinance disbursements was over
56 per cent as compared to the previous year.

œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ¢¨¸¢ž¸››¸ ª½¢µ¸¡¸¸½¿ ˆÅ¸½ œ¸º›¸¢¨¸Äî¸ ¬¸¿¢¨¸÷¸£µ¸ (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
Refinance Disbursement to various Categories of PLIs (Rs. in crore)

¬¸¿¬˜¸¸›¸ ˆÅú ª½µ¸ú ¢›¸¡¸¢Ÿ¸÷¸ ¡¸¸½]¸›¸¸ ¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸. œ¸º. ¡¸¸½. ˆºÅ¥¸
Institution REGULAR GJRHRS Total
Category Scheme
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ HFCs 835.55 353.34 1,188.89
¤¸ÿˆÅ Banks 3,829.40 3,498.60 7,328.00
¬¸íˆÅ¸£ú ¬¸¢Ÿ¸¢÷¸¡¸¸¿ Co-ops 65.75 4.25 70.00
ˆºÅ¥¸ Total 4,730.70 3,856.19 8,586.89

117
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

\¸¸’Ä 3 À †µ¸ ¬¸¿¢¨¸÷¸£µ¸

Chart 3: Loan Disbursements (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
(Rs. in crore)

9036.38
10000
7527.2
8000
5996.95 5671.6
6000
3297.38
4000
2000

0
2003-04 2004-05 2005-06 2006-07 2007-08

œ¸º›¸¢¨¸Äî¸ ¬¸¿¢¨¸÷¸£µ¸ Ÿ¸½¿ œÏ¨¸¼¢î¸ À 1998-99 ¬¸½ 2007-08 (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
Trend in Refinance Disbursements: 1998-99 to 2007-08 (Rs. in crore)

¨¸«¸Ä ¬¸¿¢¨¸÷¸£µ¸
Year Disbursement
1998-99 758
1999-00 842
2000-01 1,008
2001-02 1,025
2002-03 2,710
2003-04 3,253
2004-05 8,062
2005-06 5,632
2006-07 5,500
2007-08 8,587
ˆºÅ¥¸ Total 41,007

¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ Golden Jubilee Rural Housing Refinance Scheme

¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ˆºÅ¥¸ ¬¸¿¢¨¸÷¸£µ¸ 8,586.89 ˆÅ£¸½”õ ². Ÿ¸½¿ ¬¸½, 3,856.19 ˆÅ£¸½”õ
². ‚˜¸¸Ä÷¸ 44.91 œÏ¢÷¸©¸÷¸ ¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ ˆ½Å
÷¸í÷¸ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸ ™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ ¢™¡¸½ †µ¸¸½¿ ˆ½Å ¢¥¸‡
¢™¡¸½ Š¸‡ A ¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ ¢ˆÅ¡¸½
¬¸¿¢¨¸÷¸£µ¸ ˆÅ¸ ¤¡¸¸½£¸ ›¸ú\¸½ ¢™¡¸¸ Š¸¡¸¸ í¾ À
Out of the total disbursements of Rs. 8,586.89 crore
made during the year, Rs. 3,856.19 crore i.e. 44.91 per
cent were made under the Golden Jubilee Rural Housing
Refinance Scheme in respect of loans given by Primary
Lending Institutions (PLIs) in rural areas. The breakup
of the disbursements made under GJRHRS is given as
below:

118
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
GJRHRS: Break-up (Rs. in crore)

¬¸¿¬˜¸¸›¸ ˆÅú ª½µ¸ú Institution Category £¸¢©¸ Amount

‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ Housing Finance Companies 353.34
‚›¸º¬¸»¢\¸÷¸ ¤¸ÿˆÅ Scheduled Banks 3,502.85
ˆºÅ¥¸ Total 3,856.19

ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆÅ¸½«¸ (‚¸£‡\¸‡œ¸€) Rural Housing Fund (RHF)

Consequent to NHB’s request for allocation of resources

ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ‚œ¸›¸½ ˆÅ¸¡¸Ä ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ £¸.‚¸. ¤¸ÿ¿ˆÅ ׸£¸
¬¸¿¬¸¸š¸›¸¸½¿ ˆ½Å ‚¸¤¸¿’›¸ ˆ½Å ¢¥¸‡ ‚›¸º£¸½š¸ ˆ½Å ûÅ¥¸¬¨¸³œ¸, ˆ½Å›Í ˆ½Å ¤¸]¸’ 2008-
09 Ÿ¸½¿ £¸.‚¸. ¤¸ÿ¿ˆÅ ˆÅ¸½ 1,200 ˆÅ£¸½”õ ². ˆÅú £¸¢©¸ ‚¸¤¸¿¢’÷¸ ˆÅú Š¸ƒÄ ÷¸¸¢ˆÅ
ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ¢¨¸î¸ œ¸¸½«¸µ¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆ½Å, ¤¸ÿˆÅ¸½¿ ׸£¸ œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸
®¸½°¸ ˆÅ¸½ †µ¸¸½¿ Ÿ¸½¿ ‚›¸¸¤¸¿¢’÷¸ ˆÅŸ¸ú Ÿ¸½¿ ¬¸½ ¬¸£ˆÅ¸£ ׸£¸ œÏ¬÷¸¸¢¨¸÷¸ ŠÏ¸Ÿ¸úµ¸
‚¸¨¸¸¬¸ ˆÅ¸½«¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ ¢›¸¢š¸¡¸¸¿ ¬¸¸÷¸ ¨¸«¸Ä ˆÅú ‚¨¸¢š¸ ˆ½Å ¢¥¸‡ ¢£¡¸¸¡¸÷¸ú
¤¡¸¸]¸ ™£ œ¸£ „œ¸¥¸¤š¸ ˆÅ£¸ƒÄ Š¸ƒô £¸.‚¸. ¤¸ÿˆÅ ˆÅ¸½ œÏ¸£Ÿž¸ Ÿ¸½¿ 1,000 ˆÅ£¸½”õ
²œ¸¡¸½ ¬¸½ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆÅ¸½«¸ ¤¸›¸¸›¸½ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ž¸¸£÷¸ú¡¸ ¢£]¸¨¸Ä ¤¸ÿˆÅ ¬¸½ ‡ˆÅ œ¸°¸
œÏ¸œ÷¸ íº‚¸ í¾ £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆÅ¸½«¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ œÏ¸œ÷¸
¢›¸¢š¸¡¸¸½¿ ˆÅ¸ œÏ¡¸¸½Š¸ ˆ½Å¨¸¥¸ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡, ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆ½Å
‚¢÷¸¢£Æ÷¸ ‚›¡¸ ‡]¸½¢¬¸¡¸¸½¿ ˆÅ¸½ ¢¨¸î¸ œ¸¸½«¸µ¸ ˆ½Å ¢¥¸‡ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ A
to carry out its mandate for rural housing, it was
announced in the Union Budget 2008-09 to allot a sum
of Rs. 1,200 crore to NHB for providing finance for rural
housing, out of the unallocated shortfall in priority
sector lending by Banks. The funds under the proposed
RHF Scheme have been made available by the
Government at concessional rate of interest for a period
of seven years. NHB has since received a letter from RBI
regarding the formation of RHF with an initial corpus of
Rs. 1,000 crore. The funds under the RHF Scheme would
be used by NHB for on-lending exclusively for rural
housing to agencies other than Commercial Banks.
Project Finance:

One of the objectives of NHB is to cater to the needs of

œ¸¢£¡¸¸½]¸›¸¸ ¢¨¸î¸
£¸.‚¸. ¤¸ÿˆÅ ˆÅ¸ ‡ˆÅ „Ó½©¡¸ ¬¸Ÿ¸¸]¸ ˆ½Å ‚¸¢˜¸ÄˆÅ ´¢«’ ¬¸½ ˆÅŸ¸]¸¸½£ ¨¸Š¸¸½ô ˆÅú
]¸³£÷¸¸½¿ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸¸ í¾ ƒ¬¸ ¬¸¿¤¸¿š¸ Ÿ¸½¿, £¸.‚¸. ¤¸ÿˆÅ ›¸½ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸
¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¾£ ¢¨¸ˆÅ¸¬¸ ‡]¸½¿¢¬¸¡¸¸½¿ ˆÅ¸½ Š¸¾£-¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ (‡›¸]¸ú‚¸½) ¨¸
Ÿ¸¸ƒÇŸ½ ûŸƒ›¸½¿¬¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ ÷¸¾¡¸¸£ ¢¨¸¢ž¸››¸ œÏˆÅ¸£ ˆÅú ‚¸¨¸¸¬¸
œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ÷¸˜¸¸ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½ ¥¸½›¸½ ˆ½Å ¢¥¸‡ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸
™½ˆÅ£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¾£ ¢¨¸ˆÅ¸¬¸ ‡]¸½¿¢¬¸¡¸¸½¿ ˆÅú Ÿ¸™™ ˆÅú ƒ›¸ˆ½Å ¬¸¸˜¸-¬¸¸˜¸, ¤¸ÿˆÅ
›¸½ ¬¸£ˆÅ¸£ú ¢›¸]¸ú ž¸¸Š¸ú™¸£ú ¢ˆÅ¬Ÿ¸ ˆÅú œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆ½Å ¢¥¸¡¸½ †µ¸ ž¸ú ¢™¡¸½ A
the economically weaker sections of the society. In this
regard, NHB supported the public housing and
development agencies through financial assistance for
undertaking various types of housing projects and
housing schemes formulated by Non-Government
Organisations (NGOs) and Micro Finance Institutions
(MFIs) during the year. Along with these, the Bank also
extended loans to projects of Public Private Partnership
nature.
During the year 2007-08, the Bank sanctioned project
finance for 12 projects amounting to Rs. 819.50 crore.
The break-up of the project finance based on the nature
of the projects is as under:

œ¸¢£¡¸¸½]¸›¸¸ ¢¨¸î¸ À ¢¨¸¨¸£µ¸ (³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)

Project Finance: Break-up (Rs. in crore)

œ¸¢£¡¸¸½]¸›¸¸ ˆÅú œÏˆ¼Å¢÷¸ Nature of Project ¬¸¿¢¨¸÷¸¢£÷¸ £¸¢©¸

Amount sanctioned
¬¸£ˆÅ¸£ú ¢›¸]¸ú ž¸¸Š¸ú™¸£ú Public Private Partnership 225.00
¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¨¸¸¬¸ ‡]¸½¿¢¬¸¡¸¸¿ Public Housing Agencies 464.50
¥¸¸ž¸ ˆ½Å ¢¥¸‡ ›¸íì, ¬¸¸¨¸Ä]¸¢›¸ˆÅ ˆÅ¥¡¸¸µ¸ ‚¸¨¸¸¬¸ ¬¸¿Š¸“›¸ Not for profit Public Welfare Housing Organization 100.00
Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸ Micro Finance Institutions 30.00
ˆºÅ¥¸ Total 819.50

119
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

¬¸Ÿ¸½¢ˆÅ÷¸ ³œ¸ ¬¸½, ]¸»›¸ 2008 ˆ½Å ‚¿÷¸ ÷¸ˆÅ, ¤¸ÿˆÅ ›¸½ 5,059.11 ˆÅ£¸½”õ ²œ¸¡¸½ ˆÅú Cumulatively, till end of the June 2008, the Bank has
œ¸¢£¡¸¸½]¸›¸¸ ¥¸¸Š¸÷¸ ¨¸¸¥¸ú 406 œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½ Ÿ¸¿]¸»£ú ™ú ‚¸¾£ 3,889.19 sanctioned 406 projects having project cost of Rs.
5,059.11 crore and loan component of Rs. 3,889.19
ˆÅ£¸½”õ ²œ¸¡¸½ ˆ½Å †µ¸ ¢™¡¸½ 30 ]¸»›¸, 2008 ÷¸ˆÅ, ¤¸ÿˆÅ œ¸¢£¡¸¸½]¸›¸¸ ¢¨¸î¸ ˆ½Å ¢¥¸‡ crore. So far, the Bank has disbursed Rs. 1643.94 crore
1643.94 ˆÅ£¸½”õ ²œ¸¡¸½ ¬¸¿¢¨¸÷¸¢£÷¸ ˆÅ£ \¸ºˆÅ¸ í¾ ¤¸ÿˆÅ ˆ½Å ‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ as project finance till June 30, 2008. The Bank’s
ûŸƒ›¸½¿¬¸ (‡\¸‡Ÿ¸‡ûÅ) ˆÅ¸¡¸ÄÇÅŸ¸ ˆ½Å ÷¸í÷¸ ™½©¸ž¸£ Ÿ¸½¿ ©¸í£ú ‚¸¾£ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Housing Micro Finance (HMF) programme covers 11,145
11,145 ‚¸¨¸¸¬¸ ƒˆÅ¸ƒ¡¸¸¿ íÿ ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ Ÿ¸½¿ ¢ˆÅ¬¸¸›¸, ›¸¸¾ˆÅ£¸¢›¸¡¸¸¿, Ž¸½’½ housing units located in both urban and rural areas of
the country. The beneficiaries include farmers,
¨¡¸¸œ¸¸£ú, ™¬÷¸ˆÅ¸£, ”½¡¸£ú ˆÅ¸Ÿ¸Š¸¸£ ÷¸˜¸¸ ‚›¡¸ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å œ¸¢£¨¸¸£ housemaids, petty traders, artisans, dairy workers and
©¸¸¢Ÿ¸¥¸ íÿ ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ Ÿ¸½¿ 90 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ Ÿ¸¢í¥¸¸‡¿ íÿ A other low income households. More than 90 per cent of
the beneficiaries are women.
Ÿ¸¸ƒÇŸ½ ûŸƒ›¸½¿¬¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ˆÅú Š¸ƒÄ ¬¸¿¬¨¸úˆ¼Å¢÷¸ ˆÅ¸
Details of Sanctions to MFIs
¤¡¸¸½£¸
l Term Loan of Rs. 7 crore to Grama Vidiyal Trust
( Wo m e n i n M i c r o - c r e d i t p r o g ra m m e ) ,
l ŠÏ¸Ÿ¸ ¢¨¸Ô¸¸¥¸¡¸ ’﬒ (Ÿ¸¸ƒÇŸ½-†µ¸ ˆÅ¸¡¸ÄÇÅŸ¸ Ÿ¸½¿ Ÿ¸¢í¥¸¸‡¿),
Tiruchirapalli, a Microfinance Institution for the
¢°¸³¢\¸£¸œ¸¥¥¸ú, ƒ¬¸ˆ½Å ¬¸™¬¡¸¸½¿ ׸£¸ ÷¸¢Ÿ¸¥¸›¸¸”º ˆ½Å 14 ¢]¸¥¸¸½¿ Ÿ¸½¿ ›¸‡ purpose of new houses/incremental housing by its
Ÿ¸ˆÅ¸›¸/¬¸¿¨¸š¸Ä›¸ ˆ½Å ¢¥¸‡ Ÿ¸¸ƒÇŸ½ûŸƒ›¸½¿¬¸ ¬¸¿¬˜¸¸›¸ ˆÅ¸½ 7 ˆÅ£¸½”õ ²œ¸¡¸½ ˆÅ¸ members in 14 districts of Tamil Nadu.
¬¸¸¨¸¢š¸ †µ¸ ¢™¡¸¸ Š¸¡¸¸ A
³ l Term Loan of Rs. 5 crore to Sharada’s Women’s
Association for Weaker Section, Hyderabad for
l ©¸¸£™¸ Ÿ¸¢í¥¸¸ ¬¸¿‹¸ ˆÅ¸½ í¾™£¸¤¸¸™ Ÿ¸½¿ ˆÅŸ¸]¸¸½£ ¨¸Š¸Ä ˆ½Å ¢¥¸‡ „¬¸ˆ½Å construction of houses by its members.
¬¸™¬¡¸¸½¿ ׸£¸ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ 5 ˆÅ£¸½”õ ²œ¸¡¸½ ˆÅ¸ ¬¸¸¨¸¢š¸ †µ¸
¢™¡¸¸ Š¸¡¸¸ A l Term Loan of Rs. 3 crore to Mahasemam Trust,
Madurai - for Construction of 600 new houses for
l Ÿ¸í¸¬¸½Ÿ¸Ÿ¸ ’﬒, Ÿ¸™º£¾ ˆÅ¸½ ÷¸¢Ÿ¸¥¸›¸¸”º ˆ½Å ¢¨¸¢ž¸››¸ ¢]¸¥¸¸½¿ Ÿ¸½¿ Ÿ¸¢í¥¸¸ women members in different districts in Tamil
Nadu.
¬¸™¬¡¸¸½¿ ˆ½Å ¢¥¸‡ 600 ›¸‡ Ÿ¸ˆÅ¸›¸¸½¿ ˆÅ¸ ¢›¸Ÿ¸¸Äµ¸ ˆÅ£¸›¸½ ˆ½Å ¢¥¸‡ 3 ˆÅ£¸½”õ
l Term Loan of Rs. 5 crore to Repco Foundation for
²œ¸¡¸½ ˆÅ¸ ¬¸¸¨¸¢š¸ †µ¸ ¢™¡¸¸ Š¸¡¸¸ A
Micro Credit, Chennai - Renovation / Addition /
³
New Construction of houses to the members of
l £¾œ¸ˆÅ¸½ ûŸ„¿”½©¸›¸ ˆÅ¸½ ÷¸¢Ÿ¸¥¸›¸¸”º ˆ½Å 5 ¢]¸¥¸¸½¿ Ÿ¸½¿ ¬¨¸-¬¸í¸¡¸÷¸¸ ŠÏºœ¸¸½¿ ˆ½Å SHGs operating in 5 districts in Tamil Nadu.
¬¸™¬¡¸¸½¿ ˆ½Å ¢¥¸‡ ›¸‡ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸/›¸¨¸úˆÅ£µ¸/¬¸¿¨¸š¸Ä›¸ í½÷¸º Ÿ¸¸ƒÇŸ½
ǽŢ”’, \¸½››¸¾ ˆ½Å ¢¥¸‡ 5 ˆÅ£¸½”õ ²œ¸¡¸½ ˆÅ¸ ¬¸¸¨¸¢š¸ †µ¸ ¢™¡¸¸ Š¸¡¸¸ A l Term Loan of Rs. 10 crore to Shri Kshethra
Dharmasthala Rural Development Project
l ªú ®¸½°¸ š¸Ÿ¸Ä¬˜¸¥¸ ŠÏ¸Ÿ¸úµ¸ ¢¨¸ˆÅ¸¬¸ œ¸¢£¡¸¸½]¸›¸¸, ˆÅ›¸¸Ä’ˆÅ ˆÅ¸½ ‚œ¸›¸½ (SKDRDP), Karnataka - for Construction of 2000
new houses for its members.
¬¸™¬¡¸¸½¿ ˆ½Å ¢¥¸‡ 2000 ›¸‡ Ÿ¸ˆÅ¸›¸¸½¿ ˆ½Å ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ 10 ˆÅ£¸½”õ ²œ¸¡¸½
ˆÅ¸ ¬¸¸¨¸¢š¸ †µ¸ ¢™¡¸¸ Š¸¡¸¸ A
³ 8.4 Regulatory Role
Registration of HFCs
8.4 ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ˆÅ¸¡¸Ä
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ œ¸¿]¸úˆÅ£µ¸ The year was almost balanced in terms of granting
¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ œ¸¿]¸úˆÅ£µ¸ œÏŸ¸¸µ¸-œ¸°¸ œÏ™¸›¸ ˆÅ£›¸½ ‚¸¾£ „÷¸›¸½ íú ¢›¸£¬÷¸ ˆÅ£›¸½ Certificate of Registration (CoR) and cancelling of the
ˆ½Å ¤¸ú\¸ ¥¸Š¸ž¸Š¸ ¬¸¿÷¸º¥¸›¸ ¤¸›¸¸ £í¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, 3 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ same. During the year, the Bank granted CoR to 3 HFCs
and cancelled the CoR of 2 HFCs. As on June 30, 2008,
œ¸¿]¸úˆÅ£µ¸ œÏŸ¸¸µ¸-œ¸°¸ œÏ™¸›¸ ¢ˆÅ¡¸½ ‚¸¾£ 2 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å œ¸¿]¸úˆÅ£µ¸
the total number of HFCs registered with NHB stood at
œÏŸ¸¸µ¸-œ¸°¸ ¢›¸£¬÷¸ ¢ˆÅ¡¸½ ¡¸˜¸¸ 30 ]¸»›¸, 2008 ˆÅ¸½ £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ˆºÅ¥¸
43, of which 20 companies have permission to accept
œ¸¿]¸úˆ¼Å÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¬¸¿‰¡¸¸ 43 ˜¸ú, ¢]¸›¸Ÿ¸½¿ ¬¸½ 20 ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ public deposits.
¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ˆÅ£›¸½ ˆÅú ‚›¸ºŸ¸¢÷¸ œÏ¸œ÷¸ í¾A
120
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
„œ¸ž¸¸½Æ÷¸¸ ]¸¸Š¸³ˆÅ÷¸¸
ŠÏÏíˆÅ¸½¿ ˆ½Å ¢í÷¸¸½¿ ˆÅú ¬¸º£®¸¸ ‚¸¾£ ‚¸¨¸¸¬¸ ‡¨¸¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ‚¸¾£
‚¢š¸ˆÅ ]¸¸›¸ˆÅ¸£ú ™½›¸½ ˆ½Å ¢¥¸‡, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿ½¿ˆÅ ›¸½ ƒ¬¸ ®¸½°¸ Ÿ¸½¿ ˆÅ¸¡¸Ä£÷¸
¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ‡ˆÅ ¬¸¸Ÿ¸¸›¡¸ Ÿ¸¿\¸ ¤¸›¸¸›¸½ ˆÅú ¢™©¸¸ Ÿ¸½¿
ˆÅ¸£Ä¨¸¸ƒÄ ©¸º³ ˆÅ£ ™ú í¾ A
ˆ½Å¨¸¸ƒÄ¬¸ú (‚œ¸›¸½ „œ¸ž¸¸½Æ÷¸¸ ˆÅ¸½ ]¸¸›¸›¸¸) ¢™©¸¸-¢›¸™½Ä©¸
‚¸¾£ ˆÅ¸¥¸¸ š¸›¸ £¸½š¸ú „œ¸¸¡¸
ˆÅ¸¥¸¸š¸›¸ £¸½š¸ú ‚¢š¸¢›¸¡¸Ÿ¸, 2002 ˆ½Å ÷¸í÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å
„™¸¢¡¸÷¨¸¸½¿ œ¸£ ‚¢š¸ˆÅ ¤¸¥¸ ™½›¸½ ˆ½Å „Ó½©¡¸ ¬¸½, £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ‚¸¨¸¸¬¸
¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å œÏš¸¸›¸ ‚¢š¸ˆÅ¸¢£¡¸¸½¿ ˆ½Å ¬¸¸˜¸ ¤¸ÿŠ¸¥¸»³ Ÿ¸½¿ ¢™¬¸Ÿ¤¸£, 2007 ˆ½Å
™¸¾£¸›¸ ‡ˆÅ ¤¸¾“ˆÅ ˆÅ¸ ‚¸¡¸¸½]¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ¢¨¸¢ž¸››¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å
21 œÏ¢÷¸ž¸¸¢Š¸¡¸¸½¿ ˆ½Å ‚¢÷¸¢£Æ÷¸, ‡ûÅ‚¸ƒÄ¡¸»-ƒ¿”, ›¸ƒÄ ¢™¥¥¸ú ˆ½Å ‚œ¸£ ¢›¸™½©¸ˆÅ
›¸½ ¤¸¾“ˆÅ Ÿ¸½¿ „œ¸¢¬˜¸÷¸ í¸½ˆÅ£ ¬¸ŸŸ¸¸¢›¸÷¸ ¢ˆÅ¡¸¸ ¬¸»¢\¸÷¸ ¬¸¿¢™Šš¸ ¥¸½›¸™½›¸¸½¿ ‚¸¾£
›¸ˆÅ™ú ˆÅ¸£¸½¤¸¸£ ˆ½Å ¤¸¸£½ Ÿ¸½¿ œÏš¸¸›¸ ‚¢š¸ˆÅ¸¢£¡¸¸½¿ ›¸½ ¬¨¸¡¸¿ ˆÅ¸½ íº‡ ‚›¸ºž¸¨¸¸½¿ œ¸£
‚¸œ¸¬¸ Ÿ¸½¿ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä ¢ˆÅ¡¸¸ A
8.5 œ¸¡¸Ä¨¸½®¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ œ¸¡¸Ä¨¸½®¸µ¸
‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú ˆ½Å ¬¸º\¸¸³ ¬¸¿\¸¸¥¸›¸ ˆ ¸½ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, ¤¸ÿ¿ˆÅ ›¸½
£¸.‚¸. ¤¸ÿˆÅ ‚¢š¸¢›¸¡¸Ÿ¸, 1987 ˆÅú š¸¸£¸ 34 ˆ½Å ÷¸í÷¸ 20 ‚¸¨¸¸¬¸ ¢¨¸î¸
ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ š¸¸£¸ 29‡ ˆ½Å ÷¸í÷¸ 5 ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸
¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ¢›¸£ú®¸µ¸ ¢ˆÅ¡¸¸ ¤¸ÿˆÅ ›¸½ £¸.‚¸. ¤¸ÿˆÅ ‚¢š¸¢›¸¡¸Ÿ¸, 1987 ˆÅú š¸¸£¸
33¤¸ú(i) ˆ½Å ÷¸í÷¸ ™¸½ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¢¨¸²Ö ‚¸œ¸£¸¢š¸ˆÅ ¢©¸ˆÅ¸¡¸÷¸½¿ ‡¨¸¿ ¬¸Ÿ¸¸œ¸›¸
¡¸¸¢\¸ˆÅ¸‡¿ ž¸ú ™¸¡¸£ ˆÅú¿ A
‚›¡¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ œÏ¸¢š¸ˆÅ£µ¸¸½¿ ˆ½Å ¬¸¸˜¸ ¬¸Ÿ¸›¨¸¡¸
ž¸¸£÷¸ú¡¸ ¢£]¸¨¸Ä ¤¸ÿˆÅ ׸£¸ ®¸½°¸ú¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸¸½¿ Ÿ¸½¿ ‚¸¡¸¸½¢]¸÷¸ £¸]¡¸ ¬÷¸£ú¡¸
¬¸Ÿ¸›¨¸¡¸ ¬¸¢Ÿ¸¢÷¸ (‡¬¸‡¥¸¬¸ú¬¸ú) ˆÅú ¤¸¾“ˆÅ¸½¿ Ÿ¸½¿ „œ¸¢¬˜¸¢÷¸ ¬¸½ £¸.‚¸. ¤¸ÿˆÅ ˆÅ¸½
‚›¡¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ œÏ¸¢š¸ˆÅ£µ¸¸½¿ ]¸¾¬¸½ ž¸¸£÷¸ú¡¸ ë£]¸¨¸Ä ¤¸ÿˆÅ, œ¸º¢¥¸¬¸ ¢¨¸ž¸¸Š¸ ˆ½Å
œÏ¢÷¸¢›¸¢š¸¡¸¸½¿, £¸]¡¸ ¬¸£ˆÅ¸£ ˆ½Å Ÿ¸¿°¸¸¥¸¡¸¸½¿/¢¨¸ž¸¸Š¸¸½¿ ¡¸˜¸¸ Š¸¼í, ¢¨¸î¸, ¢¨¸¢š¸,
‚¸¢˜¸ÄˆÅ ‚œ¸£¸š¸ ¬ˆ¿Åš¸, ˆ¿Åœ¸›¸ú œ¸¿]¸ú¡¸ˆÅ, ˆ¿Åœ¸›¸ú ˆÅ¸›¸»›¸ú ¤¸¸½”Ä, ž¸¸£÷¸ú¡¸
œÏ¢÷¸ž¸»¢÷¸ ‡¨¸¿ ‡Æ¬¸\¸½¿]¸ ¤¸¸½”Ä ˆ½Å ‚¢š¸ˆÅ¸¢£¡¸¸½¿ ‚¸¾£ £¸]¡¸/®¸½°¸ú¡¸ ¬÷¸£¸½¿ œ¸£
ž¸¸£÷¸ú¡¸ \¸¸’Ä”Ä ¥¸½‰¸¸ˆÅ¸£ ¬¸¿¬˜¸¸›¸ ‚¸¢™ ¬¸½ ¬¸Ÿ¸›¨¸¡¸ ˆÅ£›¸½ Ÿ¸½¿ ¬¸í¸¡¸÷¸¸ ¢Ÿ¸¥¸ú
121
Report on Trend and Progress of Housing in India, 2008
Consumer Awareness
To protect the interest of customers and further to
educate them in the field of housing and housing finance
sector, National Housing Bank has initiated steps to
ensure setting up of a common forum of Banks and
Housing Finance Companies engaged in the sector.
KYC Guidelines and Anti Money
Laundering Measures
With an aim to re-emphasize the responsibilities of HFCs
under the Prevention of Money Laundering Act, 2002, a
meeting with the Principal Officers (POs) of HFCs was
convened by NHB at Bangalore in December, 2007. The
experience gained by POs regarding reported
Suspicious Transactions and Cash Transactions was
discussed and shared among POs.
8.5 Supervisory Role
Supervision of HFCs
With a view to ensure the smooth functioning of the
housing finance system, the Bank undertook regulatory
inspections of 20 HFCs under Section 34 and of 5 HFCs
under Section 29A of the National Housing Bank Act,
1987 during the year. The Bank has also filed criminal
complaints and winding-up petitions under Section
33B(1) of the National Housing Bank Act, 1987 against
two companies.
Coordination with Other Regulatory
Authorities
The participation of NHB in the State Level Co-ordination
Committee (SLCC) meetings convened by the Reserve
Bank of India at Regional Offices has helped in building
coordination with other Regulatory Authorities like
representatives from the Reserve Bank of India, the
Police Department, officials of the State Government in
Ministries / Departments of Home, Finance, Law,
Economic Offences Wing, Registrar of Companies,
Company Law Board, Securities and Exchange Board of
India, Institute of Chartered Accountants of India at
State / Regional levels etc.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

Box 9: Important Regulatory Initiatives

¤¸¸ÁƬ¸-9 Ÿ¸í÷¨¸œ¸»µ¸Ä ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ¬¸¿¤¸¿š¸ú œ¸í¥¸½¿

1. Creation of a Floating Charge on the Assets

1. £¸.‚¸. ¤¸ÿˆÅ ‚¢š¸¢›¸¡¸Ÿ¸, 1987 ˆÅú š¸¸£¸ 29¤¸ú ˆÅú „œ¸-š¸¸£¸ Invested In Terms Of Sub-sections (1) and
(1) ¨¸ (2) ˆÅú ©¸÷¸¸½ô¿ ˆ½Å ‚›¸º¬¸¸£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ‚œ¸›¸½ (2) Of Section 29B of the National Housing
]¸Ÿ¸¸ˆÅ÷¸¸Ä‚¸½¿ ˆ½Å œ¸®¸ Ÿ¸½¿ ¢›¸¨¸½¢©¸÷¸ ‚¸¢¬÷¸¡¸¸½¿ œ¸£ É¥¸¸½¢’¿Š¸ \¸¸]¸Ä ¤¸›¸¸¡¸¸ Bank Act, 1987, by the HFCs in favour of their
depositors
Š¸¡¸¸
In terms of Paragraph 14A of the Housing Finance
Companies (NHB) Directions, 2001, all Housing Finance
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú (£¸.‚¸.¤¸¾¿ˆÅ) ¢›¸™½Ä©¸, 2001 ˆ½Å ‚›¸º\Ž½™ 14‡ ˆ½Å
Companies (HFCs) accepting / holding public deposits
‚›¸º¬¸¸£, ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸ £¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£/š¸¸¢£÷¸ ˆÅ£›¸½ ¨¸¸¥¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸
are required to create a floating charge on the statutory
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ £¸.‚¸. ¤¸ÿˆÅ ‚¢š¸¢›¸¡¸Ÿ¸, 1987 ˆÅú š¸¸£¸ ˆÅú š¸¸£¸ 29¤¸ú ˆÅú „œ¸- liquid assets maintained in terms of Sub-sections (1)
š¸¸£¸ (1) ¨¸ (2) ˆ½Å ‚›¸º¬¸¸£ £¸.‚¸.¤¸ÿˆÅ ׸£¸ ¬¸Ÿ¸¡¸-¬¸Ÿ¸¡¸ œ¸£ ¢›¸š¸¸Ä¢£÷¸ and (2) of Section 29B of the National Housing Bank Act,
¢ˆÅ¡¸½ ‚›¸º¬¸¸£ š¸¸¢£÷¸ ¬¸¸¿¢¨¸¢š¸ˆÅ ‚˜¸Ä¬¸º¥¸ž¸ ‚¸¢¬÷¸¡¸¸½¿ œ¸£ É¥¸¸½¢’¿Š¸ \¸¸]¸Ä 1987 as may be prescribed by NHB from time to time.
¤¸›¸¸›¸¸ ‚¸¨¸©¡¸ˆÅ í¾ £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¬¸»\¸›¸¸˜¸Ä NHB has circulated a copy of the ’Trust Deed’ pro-forma
‚¸¾£ ‚¸¨¸©¡¸ˆÅ ˆÅ¸£Ä¨¸¸ƒÄ ˆ½Å ¢¥¸‡ ’›¡¸¸¬¸ ¢¨¸¥¸½‰¸’ ˆÅ¸ œÏ¸½ûŸŸ¸¸Ä ¢]¸¬¸Ÿ¸½¿ ¤¡¸¸½£¸ containing the details and the ’Trustee Guidelines’ for
the information and necessary action of HFCs.
¢™¡¸¸ Š¸¡¸¸ í¾ ‚¸¾£ ’›¡¸¸¬¸ú ¢™©¸¸¢›¸™½Ä©¸’ ˆÅú œÏ¢÷¸¢¥¸¢œ¸ œ¸¢£\¸¸¢¥¸÷¸ ˆÅú Š¸ƒÄ
˜¸ú A 2. Increase in Risk Weight of HFCs
Exposure to Housing Loans to
2 . ¨¡¸¾¢Æ÷¸ˆÅ ‚¸¨¸¸¬¸ †µ¸¸½¿ ¿ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¢›¸¨¸½©¸ Ÿ¸½¿ Individuals
]¸¸½¢‰¸Ÿ¸ ž¸¸£ Ÿ¸½¿ ¨¸¼¢Ö
The risk weight on exposure of Housing Finance
Companies to individual housing loans secured by
¨¡¸¾¢Æ÷¸ˆÅ ‚¸¨¸¸¬¸ †µ¸¸½¿ ¿]¸¸½ ‚\¸¥¸ ¬¸Ÿœ¸¢î¸ ˆÅ¸½ ¤¸¿š¸ˆÅ £‰¸ ˆÅ£ ¢¥¸‡ Š¸‡, ¨¸ mortgage of immovable property, which are classified as
¢]¸›í½¿ Ÿ¸¸›¸ˆÅ ‚¸¢¬÷¸¡¸¸½¿ ˆ½Å ³œ¸ Ÿ¸½¿ ¨¸Š¸úĈ¼Å÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸, Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ standard assets were modified as under vide Direction
ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¢›¸¨¸½©¸ Ÿ¸½¿ ]¸¸½¢‰¸Ÿ¸ ž¸¸£ Ÿ¸½¿ ¨¸¼¢Ö ¢›¸Ÿ›¸¸›¸º¬¸¸£ ¬¸¿©¸¸½¢š¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ NHB.HFC.DIR.20 / CMD / 2007 dated July 6,2007:
í¾, ƒ¬¸ ¬¸¿™ž¸Ä Ÿ¸½¿ ¢›¸™½Ä©¸ ‡›¸‡\¸¤¸ú.‡\¸‡ûŬ¸ú.¢›¸™½Ä©¸ 20/¬¸ú‡Ÿ¸”ú/2007 Housing loans to individuals up to Rs. 20 lakh secured by
¢™›¸¸¿ˆÅ 6.7.2007 ™½‰¸½¿ A mortgage of immovable property, which are classified as
standard assets :50
‚\¸¥¸ ¬¸Ÿœ¸¹î¸ ¹Š¸£_¸ú £‰¸ ˆÅ£ ¹¥¸¡¸½ 20 ¥¸¸‰¸ ²œ¸‡ ÷¸ˆÅ ˆ½Å ¨¡¸¾¹Æ÷¸ˆÅ ‚¸¨¸¸¬¸ Housing loans to individuals above Rs. 20 lakh secured
†µ¸, ¢¿]¸›í½¿ Ÿ¸¸›¸ˆÅ ‚¸¹¬÷¸¡¸¸¿ ¨¸Š¸úĈ¼Å÷¸ ¹ˆÅ¡¸¸ Š¸¡¸¸ : 50 by mortgage of immovable property, which are classified
‚\¸¥¸ ¬¸Ÿœ¸¹î¸ ¹Š¸£_¸ú £‰¸ ˆÅ£ ¹¥¸¡¸½ 20 ¥¸¸‰¸ ²œ¸‡ ¬¸½ ‚¢š¸ˆÅ ˆ½Å ¨¡¸¾¹Æ÷¸ˆÅ as standard assets :75
‚¸¨¸¸¬¸ †µ¸, ¢]¸›í½¿ Ÿ¸¸›¸ˆÅ ‚¸¹¬÷¸¡¸¸¿ ¨¸Š¸úĈ¼Å÷¸ ¹ˆÅ¡¸¸ Š¸¡¸¸ : 75
3. Increase in Interest Rate On Public
Deposits
3. ¬¸¸¨¸Ä]¸¢›¸ˆÅ ]¸Ÿ¸¸‚¸½¿ œ¸£ ¤¡¸¸]¸ ™£ Ÿ¸½¿ ¨¸¼¢Ö
6 ]¸º¥¸¸ƒÄ, 2007 ¬¸½ £¸.‚¸. ¤¸ÿˆÅ ›¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ ]¸Ÿ¸¸ With effect from July 6, 2007 NHB revised the interest
¬¸¸¨¸Ä]¸¢›¸ˆÅ £¸¢©¸¡¸¸½¿ œ¸£ ¤¡¸¸]¸ ™£ 11% ¬¸½ ¤¸[õ¸ ˆÅ£ 12.5% œÏ¢÷¸ ¨¸«¸Ä ˆÅ£ rate on public deposits accepted by HFCs from 11 per
cent to 12.5 per cent per annum and such interest being
™ú ‚¸¾£ ¡¸í ¤¡¸¸]¸ ™½¡¸ ¡¸¸ ¢Ÿ¸¢ª÷¸ í¸½÷¸¸ í¾ ]¸¸½ Ÿ¸¸í ¬¸½ ˆÅŸ¸ ‚¨¸¢š¸ œ¸£ Š¸µ¸›¸¸
payable or compounded at rests which should not be
›¸íì ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ A shorter than monthly rests.

122
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

4. Exposure to Capital Market and Cross

4. ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ׸£¸ œ¸»¿]¸ú ¤¸¸]¸¸£ Ÿ¸½¿ ¢›¸¨¸½©¸ ‚¸¾£ holding Of Equity By HFCs
ƒ¢Æ¨¸’ú ˆÅú ÇŸÁ¬¸í¸½¢¥”¿Š¸
With effect from November 30, 2007, NHB has
30 ›¸¨¸Ÿ¤¸£, 2007 ¬¸½, £¸.‚¸.¤¸ÿˆÅ ›¸½ œ¸»¿]¸ú ¤¸¸]¸¸£ ¢›¸¨¸½©¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ issued directions to all the registered HFCs
¬¸ž¸ú œ¸¿]¸úˆ¼Å÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ ¢ˆÅ¬¸ú ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ regarding their exposure to the Capital Market and
also cross holding of equity by one HFC in another
ˆ¿Åœ¸›¸ú ׸£¸ ¢ˆÅ¬¸ú ‚›¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú Ÿ¸½¿ ƒ¢Æ¨¸’ú ˆÅú
HFC.
ÇŸÁ¬¸í¸½¢¥”¿Š¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ¢›¸™½Ä©¸ ]¸¸£ú ¢ˆÅ¡¸½ A
5. I nnovative Perpetual Debt
5. ›¸¨¸¸½›Ÿ¸½«¸ ¤¸½¢Ÿ¸¡¸¸™ú †µ¸
NHB has defined perpetual debt to issue terms and
conditions applicable to debt capital instruments to
£¸.‚¸. ¤¸ÿˆÅ ›¸½ „\\¸ ¢’¡¸£-II œ¸»¿]¸ú ˆ½Å ³œ¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡
qualify for inclusion as upper Tier-II Capital. The
‚íÄ÷¸¸ í½÷¸º †µ¸ œ¸»¿]¸ú ¢¥¸‰¸÷¸ œ¸£ ‚›¸ºŸ¸÷¡¸ ¢›¸¡¸Ÿ¸ ‡¨¸¿ ©¸÷¸½ô ]¸¸£ú ˆÅ£›¸½
Direction also says that HFC’s investments in
ˆ½Å ¢¥¸‡ ¤¸½¢Ÿ¸¡¸¸™ú †µ¸ ˆÅú œ¸¢£ž¸¸«¸¸ ™ú ¢›¸™½Ä©¸ Ÿ¸½¿ ¡¸í ž¸ú ˆÅí¸ Š¸¡¸¸ ¢ˆÅ
innovative perpetual debt of other HFCs / Banks /
¢ˆÅ¬¸ú ‡ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸›¸ú ׸£¸ ¢ˆÅ›íú¿ ‚›¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸
Financial Institutions would attract a risk weight of
ˆ¿Åœ¸¢›¸¡¸¸½¿/¤¸ÿˆÅ¸½¿/¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ›¸¨¸¸½›Ÿ¸½«¸ ¤¸½¢Ÿ¸¡¸¸™ú †µ¸¸½¿ Ÿ¸½¿ ¢›¸¨¸½©¸ 100 for the purpose of capital adequacy.
í¸½›¸½ œ¸£ œ¸»¿]¸ú œ¸¡¸¸Äœ÷¸÷¸¸ ˆ½Å œÏ¡¸¸½]¸›¸¸˜¸Ä ]¸¸½¢‰¸Ÿ¸ ž¸¸£ 100 œÏ¢÷¸©¸÷¸
í¸½Š¸¸ 6. Terms and Conditions Applicable To Debt
Capital Instruments to Qualify For Inclusion
6. „\\¸ ¢’¡¸£-II œ¸»¿]¸ú ˆ½Å ³œ¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚íÄ÷¸¸ í½÷¸º as Upper Tier II Capital
†µ¸ œ¸»¿]¸ú ¢¥¸‰¸÷¸ œ¸£ ¥¸¸Š¸» ¢›¸¡¸Ÿ¸ ‡¨¸¿ ©¸÷¸½ô
With a view to provide the Housing Finance
Companies with additional options for raising
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅ¸½ ‚œ¸›¸½ ¤¸[õ÷¸½ ˆÅ¸£¸½¤¸¸£ ˆÅú ]¸³£÷¸¸½¿ ˆÅ¸½ œ¸»£¸
capital funds to meet their increasing business
ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚¸¾£ ¤¸¸]¸¸£ ]¸¸½¢‰¸Ÿ¸ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚œ¸›¸ú
requirements as well as to further shore up their
¢›¸¢š¸¡¸¸½¿ Ÿ¸½¿ ¨¸¼¢Ö ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚¢÷¸¢£Æ÷¸ ¢¨¸ˆÅ¥œ¸ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ í½÷¸º, capital funds to meet market risk, Housing Finance
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ †µ¸ œ¸»¿]¸ú ¢¥¸‰¸÷¸½¿ ]¸¸£ú ˆÅ£ˆ½Å ¢]¸›í½¿ „\\¸ Companies can augment their capital funds by
¢’¡¸£-II œ¸»¿]¸ú Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾, ‚œ¸›¸ú ¢›¸¢š¸¡¸¸½¿ ˆÅ¸½ ¤¸[õ¸ issue of debt capital instruments eligible for
¬¸ˆÅ÷¸ú íÿ ƒ¬¸ œÏ¡¸¸½]¸›¸ ˆ½Å ¢¥¸‡, £¸.‚¸. ¤¸ÿˆÅ ›¸½ „\\¸ ¢’¡¸£-II œ¸»¿]¸ú ˆ½Å inclusion as Upper Tier-II Capital. For this purpose,
³œ¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ‚íÄ÷¸¸ í½÷¸º †µ¸ œ¸»¿]¸ú ¢¥¸‰¸÷¸½¿ ]¸¸£ú ˆÅ£›¸½ ˆ½Å ¢¥¸‡ NHB has stipulated terms and conditions for debt
¢›¸¡¸Ÿ¸¸½¿ ‡¨¸¿ ©¸÷¸¸½ô ˆÅ¸ ¢›¸š¸¸Ä£µ¸ ¢ˆÅ¡¸¸ A capital instruments to qualify for inclusion as upper
Tier-II Capital.

8.6 ¬¸¿¨¸š¸Ä›¸¸÷Ÿ¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸ 8.6 Promotional Role

Equity Participation by NHB
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ ƒ¢Æ¨¸’ú Ÿ¸½¿ ž¸¸Š¸ú™¸£ú
As a promotional role, NHB has equity participation in
¬¸¿¨¸š¸Ä›¸¸÷Ÿ¸ˆÅ ž¸»¢Ÿ¸ˆÅ¸ ˆ½Å ÷¸¸¾£ œ¸£, £¸.‚¸.¤¸ÿ¿ˆÅ ›¸½ ™¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ two HFCs, namely, GRUH Finance Limited and Cent
¡¸˜¸¸ Š¸¼í ûŸƒ›¸½¿¬¸ ¢¥¸¢Ÿ¸’½” ‚¸¾£ ¬¸½¿’ ¤¸ÿˆÅ í¸½Ÿ¸ ûŸƒ›¸½¿¬¸ ¢¥¸¢Ÿ¸’½” Ÿ¸½¿ ƒ¢Æ¨¸’ú Bank Home Finance Limited. The book value of equity
holding in these two HFCs as on 30.06.2008 stood at
ž¸¸Š¸ú™¸£ú ˆÅú í¾ ƒ›¸ ™¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ Ÿ¸½¿ ƒ¢Æ¨¸’ú ž¸¸Š¸ú™¸£ú ˆÅ¸ ¤¸íú
Rs. 5.03 crore.
Ÿ¸»¥¡¸ ¡¸˜¸¸ 30.06.2008 ˆÅ¸½ 5.03 ˆÅ£¸½”õ ² œ¸¡¸½ ˜¸¸A

123
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
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£¸.‚¸. ¤¸ÿˆÅ ›¸½ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ƒ¢Æ¨¸’ú Ÿ¸½¿ ž¸¸Š¸ú™¸£ú ˆÅú ‡ˆÅ
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ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ ¢›¸¢š¸¡¸¸½¿ ˆÅú ˆÅŸ¸ú ˆÅ¸½ ™»£ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ £¸.‚¸. ¤¸ÿˆÅ ˆ½Å
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‚¢š¸ˆÅ¸¢£¡¸¸½¿ ‚¸¾£ ¤¸ÿˆÅ¸½¿ ¨¸ ®¸½°¸ú¡¸ ŠÏ¸Ÿ¸úµ¸ ¤¸ÿˆÅ¸½¿ ˆ½Å ¨¸¢£«“ ‚¢š¸ˆÅ¸¢£¡¸¸½¿ ˆ½Å ¬¸¸˜¸
¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ›¸ƒÄ ¢™¥¥¸ú Ÿ¸½¿ ™¸½ ¤¸¾“ˆÅ¸½¿ ˆÅ¸ ‚¸¡¸¸½]¸›¸ ¢ˆÅ¡¸¸ A ‚¸œ¸¬¸ú ¢í÷¸ ˆ½Å
Ÿ¸¸Ÿ¸¥¸¸½¿ ]¸¾¬¸½ ¢¨¸¨¸½ˆÅ ¬¸ŸŸ¸÷¸ Ÿ¸¸›¸™¿”, „¢\¸÷¸ ¨¡¸¨¸í¸£ ¢™©¸¸¢›¸™½Ä©¸, ›¸‡ „÷œ¸¸™
¡¸˜¸¸ ƒ¿¢™£¸ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ ¬¸¿¢¨¸÷¸¢£÷¸ †µ¸¸½¿ ˆÅ¸ ¬¸¿ž¸£µ¸ ˆÅ£›¸½ ˆ½Å
¢¥¸‡ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸, ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸, ž¸¨¸›¸ ¢›¸Ÿ¸¸Ä÷¸¸‚¸½¿ ˆÅú £½¢’¿Š¸,
¢¨¸¨¸£¢µ¸¡¸¸¿ ‚¸Á›¸¥¸¸ƒ›¸ œÏ¬÷¸º÷¸ ˆÅ£›¸¸, ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ‚¸¾£ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸,
‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ûŸƒ›¸½¿¬¸, ‚›¸º¬¸¿š¸¸›¸ ‡¨¸¿ ¢¨¸ˆÅ¸¬¸ œ¸¢£¡¸¸½]¸›¸¸‡¿, ‚¸¨¸¸¬¸ ¢¨¸î¸
¤¸¸]¸¸£ Ÿ¸½¿ š¸¸½‰¸¸š¸”õú ¨¸¸¥¸½ ˆÅ¸£¸½¤¸¸£ ˆÅ¸½ £¸½ˆÅ›¸½ ˆ½Å „œ¸¸¡¸¸½¿ ‚¸¢™ œ¸£ ƒ›¸ ¤¸¾“ˆÅ¸½¿
Ÿ¸½¿ \¸\¸¸Ä ˆÅú Š¸ƒÄ ¬¨¸µ¸Ä ]¸¡¸¿÷¸ú ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¡¸¸½]¸›¸¸ ˆ½Å ÷¸í÷¸ ¤¸ÿˆÅ¸½¿ ‚¸¾£
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ˆÅ¸¡¸Ä ¢›¸«œ¸¸™ˆÅ÷¸¸ ‚¸¾£ ¨¸«¸Ä 2008-09 ˆ½Å ¢¥¸‡ ›¸‡
¥¸®¡¸¸½¿ œ¸£ ž¸ú ƒ›¸ ¤¸¾“ˆÅ¸½¿ Ÿ¸½¿ ¬¸Ÿ¸ú®¸¸ ˆÅú Š¸ƒÄ A
124
Report on Trend and Progress of Housing in India, 2008
Equity participation in Rural HFCs
NHB has formulated a Scheme to participate in the
equity of HFCs focusing primarily in rural areas. This is a
part of the promotional role of NHB to address flow of
funds to rural areas. During the year, the Bank approved
the proposal of Mahindra Rural Housing Finance Ltd for
participation in its equity to the extent of 12.5 per cent.
Fraud Management Cell
The Fraud Management Cell was set up by the Bank with
the purpose to avoid the occurrence of housing loan
frauds by creating a tool based on the learning and
experiences of HFCs in the matter. The Cell continued to
collect and share information from HFC’s regarding
frauds committed on housing loans. Adding to that, the
Bank took an initiative of issuing Caution Advices to all
HFCs registered with NHB on a regular basis indicating
the causative factors and suggestive remedial action.
Meeting of CEOs of HFCs and senior
officials of Public Sector Banks
The National Housing Bank convened bi-annual
meetings with the Chief Executive Officers of HFCs and
Senior Officials of Banks including RRBs at New Delhi to
discuss issues relating to the housing and housing
finance sector. The issues of mutual interest like
prudential norms, fair practices guidelines, new
products viz. Refinance Scheme for top up loan under
Indira Awas Yojana, Reverse Mortgage Loans, rating of
builders, online submission of returns, rural housing and
affordable housing, housing microfinance, research and
development projects, measures to check fraudulent
transactions in housing finance market etc. were also
discussed in the meetings. Performances of Banks and
HFCs under the GJRHFS and new targets for 2008-09
were reviewed in one of these meetings.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

£¸«’ïú¡¸ ‚¸¾£ ‚›÷¸£¸Ä«’ïú¡¸ œ¸¢£´©¡¸ National and International Interface

To design a platform for discussion of Pro-poor housing

™¢®¸µ¸ œ¸»¨¸Ä ‡¢©¸¡¸¸ Ÿ¸½¿ Š¸£ú¤¸-„›Ÿ¸º‰¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸¢£¢¬˜¸¢÷¸¡¸¸½¿ œ¸£ ¢¨¸\¸¸£- finance conditions in South East Asia, a Regional Policy
¢¨¸Ÿ¸©¸Ä ˆ½Å ¢¥¸‡ ‡ˆÅ œ¥¸½’ûŸŸ¸Ä ÷¸¾¡¸¸£ ˆÅ£›¸½ ˆ½Å ¤¸¸£½ Ÿ¸½¿, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ Dialogue on Pro-poor Housing Finance was initiated by
¡¸»›¸¸ƒÄ’½” ›¸½©¸›¬¸ ƒÆ›¸¸¢Ÿ¸ˆÅ ‡¿” ¬¸¸½©¸¥¸ ˆÅŸ¸ú©¸›¸ ûŸÁ£ ‡¢©¸¡¸¸ ‡¿” ¢™ the National Housing Bank in collaboration with the
United Nations Economic and Social Commission for
œ¸¾¬¸ú¢ûňŠ(¡¸»‡›¸ƒÄ‡¬¸¬¸ú‡œ¸ú) ˆ½Å ¬¸í¡¸¸½Š¸ Ÿ¸½¿ 30-31 ]¸›¸¨¸£ú, 2008 ˆÅ¸½ ›¸ƒÄ Asia and the Pacific (UNESCAP) during January 30-31,
¢™¥¥¸ú Ÿ¸½¿ Š¸£ú¤¸-„›Ÿ¸º‰¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸£ ‡ˆÅ ®¸½°¸ú¡¸ ›¸ú¢÷¸ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä ˆÅú 2008 at New Delhi. The Policy Dialogue was well
©¸º³‚¸÷¸ ˆÅú ƒ¬¸ ›¸ú¢÷¸ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä Ÿ¸½¿ Ží ™½©¸¸½¿ ¡¸˜¸¸ ž¸¸£÷¸, ¤¸¸¿Š¥¸™½©¸, attended by representatives from six countries viz.
India, Bangladesh, Sri Lanka, Mongolia, Thailand and
ªú¥¸¿ˆÅ¸, Ÿ¸¿Š¸¸½¢¥¸¡¸¸, ˜¸¸ƒÄ¥¸ÿ” ‚¸¾£ ƒ¿”¸½›¸½¢©¸¡¸¸ ˆ½Å œÏ¢÷¸¢›¸¢š¸¡¸¸½¿ ›¸½ ž¸¸Š¸ ¢¥¸¡¸¸A
Indonesia.

®¸½°¸ú¡¸ ŠÏ¸Ÿ¸úµ¸ ¤¸ÿˆÅ¸½¿ ˆÅ¸ ¬¸ŸŸ¸½¥¸›¸ Conferences of Regional Rural Banks

ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ ®¸½°¸ú¡¸ ŠÏ¸Ÿ¸úµ¸ ¤¸ÿˆÅ¸½¿ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ ˆÅ¸½ Ÿ¸¸›¡¸÷¸¸ ™½÷¸½ íº‡, ®¸½°¸ú¡¸
ŠÏ¸Ÿ¸úµ¸ ¤¸ÿˆÅ¸½¿ ˆ½Å ¬¸¸˜¸ œ¸’›¸¸, ˆÅ¸½¥¸ˆÅ¸÷¸¸, ¤¸ÿŠ¸¥¸»³ ‚¸¾£ í¾™£¸¤¸¸™ Ÿ¸½¿ ‚›¸½ˆÅ
¤¸¾“ˆÅ¸½¿ ˆÅ¸ ‚¸¡¸¸½]¸›¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ÷¸¸¢ˆÅ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ˆÅ¸½ ¤¸[õ¸¨¸¸ ‚¸¾£ ‡ˆÅ
¬¸º´[õ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ¨¡¸¨¸¬˜¸¸ ˆ½Å ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ ®¸½°¸ú¡¸ ŠÏ¸Ÿ¸úµ¸ ¤¸ÿˆÅ¸½¿ ˆÅ¸½
Recognising the specialisation of RRBs in the rural areas,
several meetings were held with RRBs at Patna, Kolkata,
Bangalore and Hyderabad in order to provide a thrust to
rural housing and encourage RRBs to build up a healthy
rural housing portfolio.

œÏ¸½÷¬¸¸í›¸ ¢™¡¸¸ ]¸¸ ¬¸ˆ½ÅA

Round Table of Public Housing Agencies
¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¨¸¸¬¸ ‡]¸½¿¢¬¸¡¸¸½¿ ˆÅ¸ Š¸¸½¥¸Ÿ¸½]¸ ¬¸ŸŸ¸½¥¸›¸ A Round Table of the Chief Executives of Public Housing
Agencies in the Centre and States was organized by NHB
on April 10, 2008 to discuss their roles in provisions of
ˆ½Å›Í ‚¸¾£ £¸]¡¸¸½¿ Ÿ¸½¿ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¨¸¸¬¸ ‡]¸½¿¢¬¸¡¸¸½¿ ˆ½Å ‡ˆÅ Š¸¸½¥¸ Ÿ¸½]¸ ¬¸ŸŸ¸½¥¸›¸ affordable housing and the use of Public Private
ˆÅ¸ ‚¸¡¸¸½]¸›¸ £¸.‚¸.¤¸ÿˆÅ ׸£¸ 10 ‚œÏ¾¥¸, 2008 ˆÅ¸½ ¢ˆÅ¡¸¸ Š¸¡¸¸ ¢]¸¬¸Ÿ¸½¿ Partnerships.
¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆÅú ¨¡¸¨¸¬˜¸¸ ˆÅ£¸›¸½ ‚¸¾£ ¬¸¸¨¸Ä]¸¿¢›¸ˆÅ ¢›¸]¸ú ž¸¸Š¸ú™¸£ú ˆÅ£›¸½ ˆ½Å
¤¸¸£½ Ÿ¸½¿ „›¸ˆÅú ž¸»¢Ÿ¸ˆÅ¸ œ¸£ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä ¢ˆÅ¡¸¸ Š¸¡¸¸A
Capacity Building
To present the real picture of the Indian housing finance
®¸Ÿ¸÷¸¸ ¢›¸Ÿ¸¸Äµ¸ market, the Bank organised ten training programmes at
various locations in India, during the year. The
programmes were attended by more than 250
ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¤¸¸]¸¸£ ˆÅú ¢¬˜¸¢÷¸ ‚¸¾£ ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ œ¸¢£\¸¸¢¥¸÷¸ participants from various PLIs viz. Housing Finance
¢¨¸¢ž¸››¸ ¤¸¥¸¸½¿ ˆÅú ¨¸¸¬÷¸¢¨¸ˆÅ ¢¬˜¸¢÷¸ œÏ¬÷¸º÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, ¤¸ÿˆÅ ›¸½ ¨¸«¸Ä ˆ½Å Companies, Banks, Rating Agencies etc. The objective
™¸¾£¸›¸ ™½©¸ Ÿ¸½¿ ¢¨¸¢ž¸››¸ ¬˜¸¥¸¸½¿ œ¸£ ™¬¸ œÏ¢©¸®¸µ¸ ˆÅ¸¡¸ÄÇÅŸ¸¸½¿ ˆÅ¸ ‚¸¡¸¸½]¸›¸ ¢ˆÅ¡¸¸ of the programmes has been to familiarize the
ƒ›¸ ˆÅ¸¡¸ÄÇÅŸ¸¸½¿ Ÿ¸½¿ ¢¨¸¢ž¸››¸ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ¡¸˜¸¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ participants with the dynamics of the formal housing
finance system and enable them to deal with the related
ˆ¿Åœ¸¢›¸¡¸¸½¿, ¤¸ÿˆÅ¸½¿, £½¢’¿Š¸ ‡]¸½¿¢¬¸¡¸¸½¿ ‚¸¢™ ˆ½Å 250 ¬¸½ ‚¢š¸ˆÅ œÏ¢÷¸ž¸¸¢Š¸¡¸¸½¿ ›¸½
strategic and operational aspects in an effective and
ž¸¸Š¸ ¢¥¸¡¸¸ ˆÅ¸¡¸ÄÇÅŸ¸¸½¿ ˆÅ¸ „Ó½©¡¸ œÏ¢÷¸ž¸¸¢Š¸¡¸¸½¿ ˆÅ¸½ ‚¸¾œ¸\¸¸¢£ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ prudent manner.
œÏµ¸¸¥¸ú ˆÅ¸½ œÏž¸¸¨¸œ¸»µ¸Ä ¤¸›¸¸›¸½ ‚¸¾£ ¬¸¿¤¸¿¢š¸÷¸ £µ¸›¸ú¢÷¸¡¸¸½¿ ¨¸ œ¸¢£\¸¸¥¸›¸ ¬¸¿¤¸¿š¸ú
œ¸í¥¸º‚¸½¿ œ¸£ œÏž¸¸¨¸ú ¨¸ ¢¨¸¨¸½ˆÅ¬¸ŸŸ¸÷¸ [¿Š¸ ¬¸½ ˆÅú ]¸¸›¸½ ¨¸¸¥¸ú ˆÅ¸£Ä¨¸¸ƒÄ ¬¸½
‚¨¸Š¸÷¸ ˆÅ£¸›¸¸ ˜¸¸A Partnership Initiatives
For facilitating Banks’ effort to develop the housing and
housing finance sectors in a holistic manner, a new
ž¸¸Š¸ú™¸£ú ˆÅú ¢™©¸¸ Ÿ¸½¿ œ¸í¥¸ initiative of entering into institutional partnership was
launched by NHB in 2007. The Bank continued its
‚¸¨¸¸¬¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸¸½¿ Ÿ¸½¿ ¢›¸«œ¸®¸ ¢¨¸ˆÅ¸¬¸ ˆ½Å œÏ¢÷¸ ¤¸ÿˆÅ ˆ½Å œÏ¡¸¸¬¸¸½¿ Ÿ¸½¿ initiatives during the year. During the year, the Bank
¬¸º¢¨¸š¸¸ í½÷¸º, £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ¨¸«¸Ä 2007 Ÿ¸½¿ ¬¸¿¬˜¸¸Š¸÷¸ ž¸¸Š¸ú™¸£ú ˆÅ£›¸½ Ÿ¸½¿ signed Memoranda of Cooperation with First Indian

125
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

œ¸í¥¸ ˆÅú Š¸ƒÄ ¤¸ÿˆÅ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ‚œ¸›¸½ ƒ›¸ ›¸‡ œÏ¡¸¸¬¸¸½¿ Ÿ¸½¿ ¬¸¿¥¸Š›¸ £í¸ ¨¸«¸Ä ˆ½Å Corporation Private Limited, USA (FIC) and Help Age
™¸¾£¸›¸, ¤¸ÿˆÅ ›¸½ ’ûŬ’Ä ƒ¿¢”¡¸›¸ ˆÅ¸œ¸¸½Ä£½©¸›¸ œÏ¸ƒ¨¸½’ ¢¥¸., ‚Ÿ¸½£úˆÅ¸’ India, New Delhi. NHB and FIC will work together to
(‡ûÅ‚¸ƒÄ¬¸ú) ‚¸¾£ ’í½¥œ¸ ‡½]¸ ƒ¿¢”¡¸¸, ›¸ƒÄ ¢™¥¥¸ú’ ˆ½Å ¬¸¸˜¸ ‡ˆÅ ¬¸í¡¸¸½Š¸ determine the legal, technical and business feasibility of
introducing and providing Title Indemnity and Mortgage
±¸¸œ¸›¸ œ¸£ í¬÷¸¸®¸£ ¢ˆÅ¡¸½ £¸.‚¸. ¤¸ÿˆÅ ‚¸¾£ ‡ûÅ‚¸ƒÄ¬¸ú ž¸¸£÷¸ Ÿ¸½¿ Transaction Management services in India. NHB and
¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ®¸¢÷¸œ¸»¢÷¸Ä ‚¸¾£ Ÿ¸¸’ÄŠ¸½]¸ ¥¸½›¸™½›¸ œÏ¤¸¿š¸›¸ ¬¸½¨¸¸‡¿ ©¸º³ ˆÅ£›¸½ Help Age India joined hands to jointly promote RML
‚¸¾£ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ ˆÅú ¢¨¸¢š¸ˆÅ, ÷¸ˆÅ›¸úˆÅú ‚¸¾£ ˆÅ¸£¸½¤¸¸£ú ¨¡¸¨¸í¸¡¸Ä÷¸¸ œ¸£ through counselling of senior citizens, exchange
¢›¸µ¸Ä¡¸ ¥¸½›¸½ ˆ½Å ¢¥¸‡ ¢Ÿ¸¥¸ˆÅ£ ˆÅ¸Ÿ¸ ˆÅ£½¿Š¸½ £¸.‚¸. ¤¸ÿˆÅ ‚¸¾£ í½¥œ¸ ‡½]¸ ƒ¿¢”¡¸¸ information on development activities of mutual interest
and to cooperate in promotional activities including
™¸½›¸¸½¿ ¢Ÿ¸¥¸ˆÅ£ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ ˆÅ¸½ ¤¸[õ¸¨¸¸ ™½›¸½ ˆ½Å ¢¥¸‡ ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿
organizing seminars/workshops and exchange of
ˆÅ¸½ œ¸£¸Ÿ¸©¸Ä ™½¿Š¸½, ‚¸œ¸¬¸ú ¢í÷¸ ˆÅ¸½ ¤¸[õ¸›¸½ ˆÅú Š¸¢÷¸¢¨¸¢š¸¡¸¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¬¸»\¸›¸¸ faculty.
ˆÅ¸ ‚¸™¸›¸-œÏ™¸›¸ ˆÅ£½¿Š¸½ ‚¸¾£ ¬¸¿¨¸š¸Ä›¸¸÷Ÿ¸ˆÅ ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸¸½¿ ‡¨¸¿
¬¸ŸŸ¸½¥¸›¸¸½¿/ˆÅ¸¡¸Ä©¸¸¥¸¸‚¸½¿ ˆÅ¸ ‚¸¡¸¸½]¸›¸ ¨¸ ¬¸¿ˆÅ¸¡¸ ˆÅú ‚™¥¸¸-¤¸™¥¸ú Ÿ¸½¿
8.7 Research and Development
¬¸í¡¸¸½Š¸ ˆÅ£½¿Š¸½½A
Initiatives of NHB
8.7 £¸.‚¸. ¤¸ÿˆÅ ˆ½Å ‚›¸º¬¸¿š¸¸›¸ ‡¨¸¿ ¢¨¸ˆÅ¸¬¸ ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸
8.7.1 Conducting and sponsoring research and
8.7.1 ‚¸¨¸¸¬¸ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ®¸½°¸¸½¿ Ÿ¸½¿ ‚›¸º¬¸¿š¸¸›¸ ‡¨¸¿ analytical studies on areas relating to housing and
¢¨¸©¥¸½«¸µ¸¸÷Ÿ¸ˆÅ ‚š¡¸¡¸›¸ ˆÅ£›¸¸ ÷¸˜¸¸ œÏ¸¡¸¸½¢]¸÷¸ ˆÅ£›¸¸ ¤¸ÿˆÅ ˆÅ¸ housing finance has been an important agenda of
the Bank. Following that, the Bank undertook
‡ˆÅ Ÿ¸í÷¨¸œ¸»µ¸Ä ‡]¸½¿”¸ í¾ ƒ¬¸ˆ½Å ‚›¸º¬¸£µ¸ Ÿ¸½¿, ¤¸ÿˆÅ ›¸½ ™½©¸ Ÿ¸½¿ ¨¸
various research and development initiatives
‡¢©¸¡¸¸ œÏ©¸¸›÷¸ ®¸½°¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ Š¸¢÷¸¢¨¸¢š¸¡¸¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ during the year on various topics related to the
¢¨¸¢ž¸››¸ Š¸¢÷¸¢¨¸¢š¸¡¸¸½¿ œ¸£ ‚›¸º¬¸¿š¸¸›¸ ÷¸˜¸¸ ¢¨¸ˆÅ¸¬¸ ¬¸¿¤¸¿š¸ú ›¸‡ housing finance scenario in the country as also
ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ©¸º³ ¢ˆÅ¡¸½ A the Asia Pacific Region.
8.7.2 To formulate measures which address the pro-
8.7.2 $¸£ú¤¸ ¬¸Ÿ¸˜¸ÄˆÅ ‚¸¨¸¸¬¸ ‚¸¨¸©¡¸ˆÅ÷¸¸‚¸½¿ ˆÅ¸½ ¬¸¿¤¸¸½¢š¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ poor housing finance needs, UNESCAP initiated a
„œ¸¸¡¸¸½¿ ˆÅ¸½ ¬¸¿‹¸¢’÷¸ ˆÅ£›¸½ í½÷¸º ¡¸»›¸ú¬ˆ¾Åœ¸ ›¸½ ‡ˆÅ $¸£ú¤¸ ¬¸Ÿ¸˜¸ÄˆÅ regional project on pro-poor housing finance
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅú ‡ˆÅ ®¸½°¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸ œÏ¸£Ÿž¸ ˆÅú í¾ ]¸¸½ ¢ˆÅ implemented jointly by National Housing Bank
(NHB) and UN-HABITAT. The key activities of the
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ÷¸˜¸¸ ¡¸»›¸ú¬ˆ¾Åœ¸ ׸£¸ ¬¸¿¡¸ºÆ÷¸ £½œ¸ ¬¸½ ˆÅ¸¡¸¸Ä¢›¨¸÷¸
project is summarised in Box 10:
ˆÅú Š¸ƒÄ í¾A ƒ¬¸ ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸ ˆÅú ¬¸¿¢®¸œ÷¸ ]¸¸›¸ˆÅ¸£ú ¤¸¸ÁƬ¸-10 Ÿ¸½¿ ™ú
Š¸ƒÄ í¾ À-

¤¸¸ÁƬ¸-10 £¸.‚¸. ¤¸ÿˆÅ ‚¸¾£ ¡¸»›¸¬ˆ¾Åœ¸ - ‡¢©¸¡¸¸ Ÿ¸½¿ Box 10: NHB and UNESCAP - Initiatives
Š¸£ú¤¸ „›Ÿ¸º‰¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸£ œ¸í¥¸ on Pro Poor Housing Finance in Asia

¤¸ÿˆÅ ›¸½ ’¡¸»›¸¸ƒ’½” ›¸½©¸›¬¸ ƒÆ›¸¸¢Ÿ¸ˆÅ ‡¿” ¬¸¸½©¸¥¸ ˆÅŸ¸ú©¸›¸ ûŸ£ ‡¢©¸¡¸¸
‡¿” ¢™ œ¸½¬¸ú¢ûňŒ (¡¸»‡›¸ƒÄ‡¬¸¬¸ú‡œ¸ú) ˆ½Å ¬¸í¡¸¸½Š¸ Ÿ¸½¿ ‡¢©¸¡¸¸ œÏ©¸¸›÷¸ ®¸½°¸
ˆ½Å ¢¨¸¢ž¸››¸ ™½©¸¸½¿ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ ˆÅú ¢¬˜¸¢÷¸ ˆÅ¸ ‚š¡¸¡¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡
‡ˆÅ ¬¸¿¡¸ºÆ÷¸ œ¸¢£¡¸¸½]¸›¸¸ ‚¸£¿ž¸ ˆÅú í¾ ¢]¸¬¸Ÿ¸½¿ Š¸£ú¤¸-„›Ÿ¸º‰¸ ‚¸¨¸¸¬¸ ¢¨¸î¸
÷¸˜¸¸ ž¸¸£÷¸ ˆÅú ‚¸½£ ¢¨¸©¸½«¸ š¡¸¸›¸ ¢™¡¸¸ Š¸¡¸¸ í¾ ˆÅ¸¡¸ÄÇÅŸ¸ ˆÅ¸ ‡ˆÅ Ÿ¸º‰¡¸
ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸ ‡¢©¸¡¸¸ ‚¸¾£ œÏ©¸¸›÷¸ ®¸½°¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú ˆÅ¸ ®¸½°¸ú¡¸
÷¸º¥¸›¸¸÷Ÿ¸ˆÅ ‚š¡¸¡¸›¸ ˆÅ£›¸¸ í¾ A œÏ¬÷¸¸¢¨¸÷¸ ‚š¡¸¡¸›¸ Ÿ¸½¿, Š¸£ú¤¸-„›Ÿ¸º‰¸
‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú ˆÅú ¢¬˜¸¢÷¸ ˆÅ¸ œÏ¥¸½‰¸›¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ ‚¸¾£ ¬¸¿¤¸¿¢š¸÷¸
£¸«’ïú¡¸ ¬¸£ˆÅ¸£¸½¿ ׸£¸ ¢›¸¢™Ä«’ ¬¸¿Š¸“›¸¸½¿ ‚¸¾£ ‡]¸½¿¢¬¸¡¸¸½¿ ׸£¸ Ží ™½©¸¸½¿ Ÿ¸½¿
¢¨¸©¸¥¸½«¸µ¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ A
In collaboration with the United Nations Economic and
Social Commission for Asia and the Pacific (UNESCAP),
the Bank has undertaken a joint project to study the
state of the housing finance sector in various countries
of the Asia Pacific region with focus on pro-poor housing
finance, including India. One of the key activities of the
programme is a regional comparative study on housing
finance systems in Asia and the Pacific region. Under the
proposed study, the state of the art in pro-poor housing
finance will be documented and analyzed in six
countries by organizations and agencies designated by
the respective national governments.

126
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

œ¸¢£¡¸¸½]¸›¸¸ ˆ½Å œ¸í¥¸½ ˆÅ™Ÿ¸ ˆ½Å ³œ¸ Ÿ¸½¿, Š¸£ú¤¸-„›Ÿ¸º‰¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸£ ‡ˆÅ
®¸½°¸ú¡¸ ›¸ú¢÷¸ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä ˆÅ¸ ‚¸¡¸¸½]¸›¸ 30-31 ]¸›¸¨¸£ú, 2008 ˆÅ¸½ ›¸ƒÄ
¢™¥¥¸ú Ÿ¸½¿ ¢ˆÅ¡¸¸ Š¸¡¸¸ A ƒ¬¸ ›¸ú¢÷¸ œ¸£ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä Ÿ¸½¿ Ží ™½©¸¸½¿ ¡¸˜¸¸ ž¸¸£÷¸,
¤¸¸¿Š¥¸™½©¸, ªú¥¸¿ˆÅ¸, Ÿ¸¿Š¸¸½¢¥¸¡¸¸, ˜¸¸ƒÄ¥¸ÿ” ‚¸¾£ ƒ¿”¸½›¸½¢©¸¡¸¸ ˆ½Å œÏ¢÷¸ž¸¸¢Š¸¡¸¸½¿ ˆ½Å
‚¢÷¸¢£Æ÷¸ ¡¸»‡›¸ƒÄ‡¬¸¬¸ú‡œ¸ú, ‚›¸í¾¤¸ú’¾’ ÷¸˜¸¸ £¸.‚¸. ¤¸ÿˆÅ ›¸½ ž¸¸Š¸ ¢¥¸¡¸¸A
ƒ¬¸ ¢¨¸\¸¸£ ¢¨¸Ÿ¸©¸Ä Ÿ¸½¿ ¢¨¸©¨¸ ¤¸ÿˆÅ, ¡¸»‡¬¸‡½”, ¢¬¸¢¨¸¥¸ ¬¸¸½¬¸¸¡¸’ú ¬¸¿Š¸“›¸¸½¿,
¢©¸®¸¸¢¨¸™¸½¿, ‚›¸º¬¸¿š¸¸›¸ˆÅ÷¸¸Ä‚¸½¿ ‚¸¾£ ›¸ú¢÷¸ ¢›¸Ÿ¸¸Ä÷¸¸‚¸½¿ ›¸½ ž¸¸Š¸ ¢¥¸¡¸¸A ƒ¬¸
›¸ú¢÷¸Š¸÷¸ ¢¨¸\¸¸£-¢¨¸Ÿ¸©¸Ä ˆÅ¸ „Ó½©¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸, ¢¨¸î¸ú¡¸ ‚¸¾£ ¬¸¿¬˜¸¸Š¸÷¸
¬¸Ÿœ¸ˆÅ¸½ô Ÿ¸½¿ ‚¸¾œ¸\¸¸¢£ˆÅ ÷¸˜¸¸ Ÿ¸¸ƒÇŸ½-¢¨¸î¸ ‚¸¾£ ¬¸Ÿ¸º™¸¡¸-‚¸š¸¸¢£÷¸ ‚¸¨¸¸¬¸
¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ÷¸ˆÅ Š¸£ú¤¸¸½¿ ˆÅú œ¸íº¿\¸ ¬¸ºŠ¸Ÿ¸ ¤¸›¸¸›¸¸ ˜¸¸, ¢]¸¬¸¬¸½ Ÿ¸¸ƒÇŸ½-ûŸƒ›¸½¿¬¸
‚¸¾£ ¬¸Ÿ¸º™¸¡¸-‚¸š¸¸¢£÷¸ ¬¸¿¬˜¸¸›¸ ‚œ¸›¸¸ ˆÅ¸¡¸Ä ®¸½°¸ ¤¸[õ¸ ¬¸ˆ½¿Å ‚¸¾£ ‚¸¾œ¸\¸¸¢£ˆÅ
®¸½°¸ ˆ½Å ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ƒ¬¸ ¤¸¸]¸¸£ Ÿ¸½¿ œÏ¨¸½©¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¸½÷¬¸¸¢í÷¸ ˆÅ£ ¬¸ˆ½Å
Æ¡¸¸½¿¢ˆÅ ƒ¬¸½ ‚ž¸ú ÷¸ˆÅ ‚÷¡¸¢š¸ˆÅ ]¸¸½¢‰¸Ÿ¸ œ¸»µ¸Ä ¡¸¸ „›¸ˆ½Å ¢¥¸‡ ™ºŠ¸ÄŸ¸ Ÿ¸¸›¸¸
]¸¸÷¸¸ ˜¸¸ A
As a first step towards the project, a Regional Policy
Dialogue on Pro-poor Housing Finance was convened
during January 30-31, 2008 at New Delhi. The Dialogue
had participants from India, Indonesia, Malaysia,
Thailand, Mongolia, Sri Lanka, Pakistan and Bangladesh
b e s i d e s U N E S C A P, U N H A B I TAT a n d N H B .
Representatives from the World Bank, USAID, Civil
Society Organizations, academicians, researchers and
policy makers also participated in the Dialogue. The
objective of the Policy Dialogue was to deliberate on the
accessibility of the poor to housing finance, financial and
institutional linkages between formal and micro-finance
and community-based Housing Finance Institutions, to
enable the micro-finance and community-based
institutions to increase their coverage and enthuse the
reach of the formal sector institutions’ markets that
were hitherto, considered too risky or inaccessible by
them.

8.7.3 ž¸¸£÷¸ Ÿ¸½¿ ¢£í¸¡¸©¸ú ‚¸¨¸¸¬¸¸½¿ ˆÅú Ÿ¸¸¿Š¸ ˆÅ¸ ‚š¡¸¡¸›¸ 8.7.3 Study of Residential Housing Demand in
India
¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¨¸÷¸ÄŸ¸¸›¸ ‚¸¨¸¸¬¸ †µ¸ Ÿ¸™ Ÿ¸½¿
To study and analyse the existing status of
‚¸¨¸¸¬¸, ‚›¸ºŸ¸¸¢›¸÷¸ Ÿ¸¸¿Š¸, Ÿ¸¸¾]¸»™¸ †¢µ¸¡¸¸½¿ ˆÅ¸ ]¸ú¨¸›¸ ¨¸¼î¸, housing, projected demand, existing
‚¸¨¸¸¬¸ †µ¸¸½¿ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ‚›¸ºž¸¨¸ ‚¸¾£ ¬¸¿œ¸¸©¸Ä¢¨¸ˆÅ ˆ½Å Ÿ¸»¥¡¸¸¿ˆÅ›¸ ˆÅú borrowers’ profile, experience with housing
loans, profile and valuation of collateral for
Ÿ¸¸¾]¸»™¸ ¢¬˜¸¢÷¸ ˆÅ¸ ‚š¡¸¡¸›¸ ‡¨¸¿ ¢¨¸©¸¥¸½«¸µ¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, ¤¸ÿˆÅ ›¸½ existing housing loan portfolio of Banks and
‡ˆÅ ¢¨¸¬÷¸¼÷¸ ‚š¡¸¡¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ £¸«’ïú¡¸ ¤¸ÿˆÅ œÏ¤¸¿š¸›¸ ¬¸¿¬˜¸¸›¸ HFCs, the Bank had commissioned the National
Institute of Bank Management (NIBM) to
ˆÅú ¬˜¸¸œ¸›¸¸ ˆÅú ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, ƒ¬¸ ‚š¡¸¡¸›¸ ˆÅ¸½ ¬¸¿¡¸ºÆ÷¸
conduct a comprehensive study. During the
‡›¸‡\¸¤¸ú-‡›¸‚¸ƒÄ¤¸ú‡Ÿ¸ Ÿ¸¸½›¸¸½ŠÏ¸ûÅ ˆ½Å ³œ¸ Ÿ¸½¿ "‡ ¬’”ú ‚¸ûÅ year, the Study was released as a joint NHB-
£½]¸ú”½¢›©¸¡¸¥¸ í¸„¢¬¸¿Š¸ ¢”Ÿ¸¸¿” ƒ›¸ ƒ¿¢”¡¸¸" ›¸¸Ÿ¸ ¬¸½ ž¸¸£÷¸ú¡¸ NIBM Monograph titled “A Study of Residential
Housing Demand in India’ by Dr Y V Reddy, then
¢£]¸¨¸Ä ¤¸ÿˆÅ ˆ½Å ÷¸÷ˆÅ¸¥¸ú›¸ Š¸¨¸›¸Ä£ ”¸. ¨¸¸ƒÄ ¨¸ú £½Ûú ׸£¸ ›¸ƒÄ ¢™¥¥¸ú
Governor, Reserve Bank of India on the
Ÿ¸½¿ 23 ]¸»›¸, 2008 ˆÅ¸½ ‚¸¡¸¸½¢]¸÷¸ ‡›¸‚¸ƒÄ¤¸ú‡Ÿ¸ ˆ½Å ™ú®¸¸¿÷¸ occasion of the Annual Convocation of NIBM
¬¸Ÿ¸¸£¸½í ˆ½Å ‚¨¸¬¸£ œ¸£ ]¸¸£ú ¢ˆÅ¡¸¸ Š¸¡¸¸ A held on June 23, 2008 at New Delhi.

8.7.4 ‚¸¨¸¸¬¸ ¤¸¸]¸¸£ œ¸£ ‚š¡¸¡¸›¸ 8.7.4 Studies on Housing Market

¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, £¸.‚¸. ¤¸ÿˆÅ ׸£¸ ‚\¸¥¸ ¬¸Ÿœ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ During the year, two more studies were
assigned by NHB to analyse the characteristics
„÷¸¸£-\¸[õ¸¤¸ ˆÅ¸ ¢¨¸©¸¥¸½«¸µ¸ ˆÅ£›¸½ ‚¸¾£ ž¸¸£÷¸ Ÿ¸½¿ ©¸ú«¸Ä ¬¸íˆÅ¸£ú
of property prices and that of Apex Co-operative
‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¢Ÿ¸¢÷¸¡¸¸½¿ ˆ½Å ™¸½ ‚¸¾£ ‚š¡¸¡¸›¸ ž¸ú ˆÅ£¸‡ Š¸‡ A Housing Finance Societies (ACHFS) in India.
‡›¸¬¸ú‡ƒÄ‚¸£ ˆÅ¸ Š¸“›¸ ™¸½ ‚š¡¸¡¸›¸ (ˆÅ) ‚¸¨¸¸¬¸ú¡¸, The NCAER was commissioned to conduct two
studies (a) Devising Appropriate Mechanism for
¨¡¸¸¨¸¬¸¸¢¡¸ˆÅ ¬¸Ÿœ¸¢î¸¡¸¸½¿ ‚¸¾£ „›¸ˆ½Å ¢ˆÅ£¸¡¸½ Ÿ¸»¥¡¸¸½¿ Ÿ¸½¿ „÷¸¸£-
Collecting / Monitoring Price Movement of
\¸[õ¸¤¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ‚¸¿ˆÅ”õ½ ‡ˆÅ°¸ ˆÅ£›¸½/¢›¸Š¸£¸›¸ú ˆÅ£›¸½ ˆ½Å ¢¥¸‡ Residential, Commercial Properties and their
127
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

‡ˆÅ „œ¸¡¸ºÆ÷¸ œÏµ¸¸¥¸ú ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½, ‚¸¾£ (‰¸) ‚¸¨¸¸¬¸ú¡¸ Rental Values; and (b) A study of price structure
of housing properties.
¬¸Ÿœ¸¢î¸¡¸¸½¿ ˆ½Å Ÿ¸»¥¡¸ [¸¿\¸½ ˆÅ¸ ‚š¡¸¡¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢ˆÅ¡¸¸ Š¸¡¸¸ A
The study on Apex Co-operative Housing
©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¢Ÿ¸¢÷¸¡¸¸½¿ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ‚š¡¸¡¸›¸ ¨¸¾ˆº¿Å“ Finance Societies is being undertaken by the
Ÿ¸½í÷¸¸ ¬¸¿¬˜¸¸›¸ ¬¸íˆÅ¸¢£÷¸¸ œÏ¤¸¿š¸›¸ (¨¸ú‡‡Ÿ¸‡›¸‚¸ƒÄ¬¸ú‚¸½‡Ÿ¸), Vaikunth Mehta Institute of Co-operative
Management (VAMNICOM), Pune. This study
œ¸ºµ¸½ ׸£¸ ¢ˆÅ¡¸¸ ]¸¸ £í¸ í¾ ¡¸í ‚š¡¸¡¸›¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ˆÅ¸¡¸Ä[¸¿\¸½ ˆÅ¸½ has been initiated to improve the regulatory
„››¸÷¸ ˆÅ£›¸½ ‚¸¾£ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å œ¸¢£¨¸¸£¸½¿ ÷¸ˆÅ œ¸í¿º\¸›¸½ ˆ½Å ¢¥¸‡ framework and also to explore the possibility of
up-scaling the activities of ACHFS to reach out
©¸ú«¸Ä ¬¸íˆÅ¸£ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¢Ÿ¸¢÷¸¡¸¸½¿ ˆ½Å ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸¸½¿ ˆÅ¸½ ¢¨¸¬÷¸¸£
the low income households.
™½›¸½ ˆÅú ¬¸¿ž¸¸¨¸›¸¸ ˆÅ¸½ ž¸ú ÷¸¥¸¸©¸¸ ]¸¸ £í¸ í¾ A
8.8 New Initiatives
8.8 ›¸ƒÄ œ¸í¥¸½¿ 8.8.1 Reverse Mortgage Loan

8.8.1 ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ NHB has conceptualized the Reverse Mortgage
Loan (RML) product, exclusively for house
£¸.‚¸. ¤¸ÿˆÅ ›¸½ ˆ½Å¨¸¥¸ Š¸¼í ¬¨¸¸Ÿ¸ú ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆ½Å ¢¥¸‡ „›¸ˆÅú owning senior citizens to address their financial
‚¸¨¸¸¬¸ú¡¸ ¬¸Ÿœ¸¢î¸ ˆÅ¸ „››¸¡¸›¸, ›¸¨¸úˆÅ£µ¸ ‚¸¾£ ¢¨¸¬÷¸¸£ ˆÅ£›¸½ ˆ½Å needs for up-gradation, renovation and
¢¥¸‡ š¸›¸ ˆÅú Ÿ¸¸¿Š¸ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ÷¸˜¸¸ ‹¸£ ˆÅ¸½ ¤¸½í÷¸£ ¤¸›¸¸›¸½ ¬¸½ extension of their residential property and for
uses associated with home improvement and
]¸º”õú ]¸³£÷¸¸½¿ ˆÅ¸½ œ¸»£¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡¨¸¿ œ¸½¿©¸›¸/‚›¡¸ ‚¸¡¸ Ÿ¸½¿
supplementing pension/other income. In this
¨¸¼¢Ö ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ „÷œ¸¸™ ˆÅ¸½ ÷¸¾¡¸¸£ ¢ˆÅ¡¸¸ í¾ regard, NHB launched a Reverse Mortgage Loan
ƒ¬¸ ¤¸¸£½ Ÿ¸½¿, £¸.‚¸. ¤¸ÿˆÅ ›¸½ ˆÅ¸¡¸ÄÇÅŸ¸ ¬¸¿\¸¸¢¥¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ Counselling Programme for Senior Citizens,
¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆÅú ¬¸Ÿ¸¬¡¸¸‚¸½¿ ˆÅ¸½ í¥¸ ˆÅ£›¸½ ˆ½ ˆÅ¸¡¸Ä Ÿ¸½¿ ¬¸¿¥¸Š›¸ adopting a ’partnership approach’ with reputed
NGOs engaged in addressing the issues of
‡ˆÅ ¬¸ºœÏ¢¬¸Ö ¬¨¸¡¸¿ ¬¸½¨¸ú ¬¸¿Š¸“›¸ ˆ½Å ¬¸¸˜¸ ’¬¸íž¸¸¢Š¸÷¸¸’ ˆÅ£ˆ½Å, senior citizens to operate the programme. The
¨¸¢£«“ ›¸¸Š¸¢£ˆÅ¸½¿ ˆ½Å ¢¥¸‡ ’¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ †µ¸ œ¸£¸Ÿ¸©¸Ä ˆÅ¸¡¸ÄÇÅŸ¸’ counselling programme has already been
©¸º³ ¢ˆÅ¡¸¸ í¾A œ¸£¸Ÿ¸©¸úÄ¡¸ ˆÅ¸¡¸ÄÇÅŸ¸ ’œ¸¸¡¸¥¸’ ‚¸š¸¸£’ œ¸£ introduced on a ’pilot’ basis in Delhi, Chandigarh
and Hyderabad. Four Counselling Centres have
¢™¥¥¸ú, \¸¿”úŠ¸[õ ¨¸ í¾™£¸¤¸¸™ Ÿ¸½¿ ‚¸£¿ž¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾A „¬¸ˆ½Å ¤¸¸™
since been established at New Delhi,
\¸¸£ ‚›¡¸ œ¸£¸Ÿ¸©¸úÄ¡¸ ˆ½Å›Í¸½¿ ˆÅú ¬˜¸¸œ¸›¸¸ ›¸ƒÄ ¢™¥¥¸ú, \¸¿”úŠ¸[õ, Chandigarh and Hyderabad including one at
í¾™£¸¤¸¸™ ÷¸˜¸¸ ¤¸ÿˆÅ ˆ½Å ›¸ƒÄ ¢™¥¥¸ú ¢¬˜¸÷¸ Ÿ¸º‰¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸ Ÿ¸½¿ ˆÅú ]¸¸ Head Office of the Bank in New Delhi. The
\¸ºˆÅú í¾A ¢£¨¸¬¸Ä Ÿ¸¸Á’ŠÄ ¸½]¸ „÷œ¸¸™ ˆÅú ¢¨¸¢©¸«’÷¸¸‚¸½¿ ˆÅú \¸\¸¸Ä product features of RML have been discussed in
Chapter -7.
‚š¡¸¸¡¸-7 Ÿ¸½¿ ˆÅú ]¸¸ \¸ºˆÅú í¾ A
8.8.2 Mortgage Backed Securitisation (MBS)
8.8.2 Ÿ¸¸Á’ÄŠ¸½]¸ ¬¸¿œ¸¸½¢«¸÷¸ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸
National Housing Bank has taken initiatives in
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ ™½©¸ Ÿ¸½¿ Ÿ¸¸Á’ÄŠ¸½]¸ ¬¸¿œ¸¸½¢«¸÷¸ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ the setting up of Mortgage Backed
(‡Ÿ¸¤¸ú‡¬¸) ¬˜¸¸¢œ¸÷¸ ˆÅ£›¸½ ÷¸˜¸¸ ¢×÷¸ú¡¸ˆÅ Ÿ¸¸Á’ÄŠ¸½]¸ ¤¸¸{¸¸£ Securitisation (MBS) and development of the
secondary mortgage market in the country.
¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½ ˆÅú ¢{¸ŸŸ¸½™¸£ú „“¸ƒÄ í¾ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ NHB launched the pilot issues of Residential
ž¸¸£÷¸ú¡¸ ¢¨¸î¸ ¤¸¸{¸¸£ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸ Ÿ¸¸Á’ÄŠ¸½]¸ ¬¸¿œ¸¸½¢«¸÷¸ œÏ¢÷¸ž¸»¢÷¸ Mortgage Backed Security (RMBS) in August
ˆÅú ©¸º³‚¸÷¸ ‚Š¸¬÷¸, 2000 Ÿ¸½¿ ˆÅú ˜¸ú, ¢]¸¬¸ˆ½Å ÷¸í÷¸ ¬¸¿¢\¸÷¸ ³œ¸ 2000, in the Indian Financial Market, followed
by other RMBS issues cumulatively to Rs. 862
¬¸½ 862 ˆÅ£¸½”õ ²œ¸‡ ]¸¸£ú ¢ˆÅ‡ ]¸¸ \¸ºˆ½Å íÿ „Æ÷¸ œÏÇÅŸ¸ ‡¨¸¿ í¸¥¸ crore. The processes and the recent
íú ˆ½Å ¢¨¸ˆÅ¸¬¸ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ¤¸¸ÁƬ¸-11 Ÿ¸½¿ ¬¸¿¢®¸œ÷¸ ]¸¸›¸ˆÅ¸£ú ™ú Š¸ƒÄ development in this regard is summarised in
Box 11:
í¾ A

128
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

¤¸¸ÁƬ¸-11 ¤¸¿š¸ˆÅ ¬¸Ÿ¸¢˜¸Ä÷¸ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ (¢£¨¸¬¸Ä Ÿ¸¸Á’ŠÄ ¸½]¸) Box 11: Mortgage Backed
†µ¸¸½¿ ‚˜¸¨¸¸ ž¸¸¨¸ú œÏ¸œ¡¸ £¸¢©¸¡¸¸½¿ ‚˜¸¨¸¸ ‚¸¤¸¿’›¸ú¡¸ †µ¸ ˆ½Å ¬¸¿œ¸¢£¨¸÷¸Ä›¸ ˆÅú Securitisation (MBS)
œÏ¢ÇÅ¡¸¸ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ˆÅí¥¸¸÷¸ú í¾A œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ˆÅú œÏ¢ÇÅ¡¸¸ ¬¸½ †µ¸¸½¿ ‚¸¾£
œÏ¸œ¡¸ £¸¢©¸¡¸¸½¿ ˆ½Å ‚¢ž¸¢í÷¸ ¬¸Ÿ¸»í›¸ (œ¸»¥¸) ˆÅ¸½ œ¸¾ˆ½Å]¸¤¸Ö ˆÅ£›¸¸ ‚¸¾£ ƒ›¸ The process of converting loans or future receivables

œ¸¾ˆ½Å]¸¸½¿ ˆÅ¸½ œÏ¢÷¸ž¸»¢÷¸¡¸¸½¿ ˆ½Å ³œ¸ Ÿ¸½¿ ¢¨¸¢ž¸››¸ ¢›¸¨¸½©¸ˆÅ¸½¿ ˆÅ¸½ ¤¸½\¸›¸¸ ¬¸¿¤¸Ö í¾, ]¸¸½ into negotiable securities or assignable debt is called
Securitisation. The securitisation process involves
¢¨¸\¸¸£¸š¸ú›¸ ‚¸¢¬÷¸¡¸¸½¿ ‚¸¾£ „›¸¬¸½ ¬¸¿¤¸Ö ‚¸¡¸ ˆÅú š¸¸£¸‚¸½¿ ¬¸½ ¬¸Ÿ¸œ¸¸¢©¨¸ÄˆÅ
packaging designated pool of loans and receivables and
í¸½÷¸ú íÿ A
selling these packages to the various investors in the
form of securities which are collateralised by the
œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ˆÅú œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ ¥¸½›¸™½›¸ ‡½¬¸½ ¤¸¿š¸ˆÅ ¤¸¸{¸¸£ Ÿ¸½¿ œ¸®¸ˆÅ¸£¸½¿ ˆ½Å ¤¸ú\¸ underlying assets and their associated income streams.
í¸½÷¸¸ í¾, ¢]¸›¸Ÿ¸½¿ œÏ¸˜¸¢Ÿ¸ˆÅ ‡¨¸¿ Š¸¸¾µ¸ ¤¸¿š¸ˆÅ ¤¸¸{¸¸£ ©¸¸¢Ÿ¸¥¸ í¾A œÏ¸˜¸¢Ÿ¸ˆÅ ¤¸¿š¸ˆÅ
The transactions in the securitisation process occur
¤¸¸{¸¸£ ˆÅú Š¸¢÷¸¢¨¸¢š¸ Ÿ¸½¿ Ÿ¸º‰¡¸ ³œ¸ ¬¸½ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ‚¸¾£ œÏ¸˜¸¢Ÿ¸ˆÅ between the parties in the mortgage market comprising
†µ¸™¸÷¸¸‚¸½¿ ˆ½Å ¤¸ú\¸ ¥¸½›¸™½›¸ ˆ½Å œ¸¢£µ¸¸Ÿ¸ ˆ½Å ³ œ¸ Ÿ¸½¿ ¤¸¿š¸ˆÅ¸½¿ ˆÅ¸ ¢›¸Ÿ¸¸Äµ¸ ©¸¸¢Ÿ¸¥¸ of primary and secondary mortgage markets. The
primary mortgage market activity mainly comprises
í¾A Š¸¸¾µ¸ ¤¸¿š¸ˆÅ ¤¸¸{¸¸£ Ÿ¸½¿ Ÿ¸º‰¡¸ ³œ¸ ¬¸½ ¤¸¿š¸ˆÅ¸½¿ ˆÅ¸ ¨¡¸¸œ¸¸£ ¡¸¸½Š¡¸ ¢¨¸î¸ú¡¸ creation of mortgages as a result of transactions
¢¥¸‰¸÷¸¸½¿ Ÿ¸½¿ ¬¸¿œ¸¢£¨¸÷¸Ä›¸ ‚¸¾£ ƒ›¸ ¢¥¸‰¸÷¸¸½¿ ˆÅ¸ ¬¸¿ž¸¸¢¨¸÷¸ ¢›¸¨¸½©¸ˆÅ¸½¿ ˆÅ¸½ ¢¨¸ÇÅ¡¸ between the borrowers and primary lenders. The
secondary mortgage market mainly involves the
¬¸¿¤¸Ö í¾A ›¸ˆÅ™ú œÏ¨¸¸í ]¸¸½ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ ¬¸½ œÏ¨¸÷¸ÄˆÅ¸½¿ ˆÅ¸½ œ¸º›¸ž¸ºÄŠ¸÷¸¸›¸ ˆ½Å ³ œ¸
conversion of mortgages into tradable financial
Ÿ¸½¿ ‚¸÷¸½ íÿ, „›¸ˆÅ¸½ ¤¸¿š¸ˆÅ¸½¿ ˆ½Å ‰¸£ú™½ Š¸‡ ¬¸Ÿ¸»í›¸ (œ¸»¥¸) ˆÅ¸ œÏ¤¸š¸ ˆÅ£›¸½ ˆ½Å instruments and the sale of these instruments to
prospective investors. The cash flows which come as
œÏ¡¸¸½]¸›¸¸˜¸Ä ‚¢ž¸¢í÷¸ ¢ˆÅ¬¸ú Ÿ¸š¡¸¨¸÷¸úÄ ‚¢ž¸ˆÅ£µ¸ ¢¨¸©¸½«¸ œÏ¡¸¸½]¸›¸ Ÿ¸¸š¡¸Ÿ¸
repayments from the borrowers to the originators, can
(‡¬¸œ¸ú¨¸ú) ˆÅ¸½ ‚¸¢¬÷¸¡¸¸½¿ ˆ½Å ¬¸Ÿ¸ˆÅ¸¢¥¸ˆÅ ‚¿÷¸£µ¸ ˆ½Å ¬¸¸˜¸ ¢ˆÅ¬¸ú ÷¸ú¬¸£½ be transferred to a third party with simultaneous
œ¸®¸ˆÅ¸£ ˆÅ¸½ ‚¿÷¸¢£÷¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾A transfer of assets to an intermediary agency (Special
Purpose Vehicle or SPV) designated for the purpose of
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ (¬¸¿©¸¸½š¸›¸) ‚¢š¸¢›¸¡¸Ÿ¸, 2000 ›¸½, ‚›¡¸ ¤¸¸÷¸¸½¿ ˆ½Å ¬¸¸˜¸- managing the bought over pool of mortgages.

¬¸¸˜¸, £¸.‚¸.¤¸ÿˆÅ ˆÅ¸½ ¢¨¸¢ž¸››¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ‚¸¾£ ¤¸ÿˆÅ¸½¿ ׸£¸ œÏ¨¸¢÷¸Ä÷¸ The National Housing Bank (Amendment) Act, 2000
has, inter alia, entrusted NHB to undertake
‚¸¨¸¸¬¸ú¡¸ ¤¸¿š¸ˆÅ¸½¿ ˆÅ¸ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ˆÅ£›¸½ ‚¸¾£ ‚¸¨¸¸¬¸ú¡¸ ¤¸¿š¸ˆÅ¸½¿ ˆ½Å ¢¥¸‡
securitization of residential mortgages originated by
‡ˆÅ Š¸¸¾µ¸ ¤¸¿š¸ˆÅ ¤¸¸{¸¸£ ˆÅ¸ ¢¨¸ˆÅ¸¬¸ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸½ ˆÅ¸ ˆÅ¸¡¸Ä ¬¸¸ÿœ¸¸ í¾A different housing finance institutions and banks and

£¸.‚¸.¤¸ÿˆÅ ›¸½ ‚ž¸ú ÷¸ˆÅ ˆºÅ¥¸ 862.20 ˆÅ£¸½”õ ² œ¸‡ ˆÅú ‚¸¨¸¸¬¸ú¡¸ ¤¸¿š¸ˆÅ ensure the development of a secondary market for
residential mortgages. NHB has so far undertaken
¬¸Ÿ¸¢˜¸Ä÷¸ œÏ¢÷¸ž¸»¢÷¸¡¸¸½¿ ˆ½Å \¸¸¾™í ¢›¸Š¸ÄŸ¸ ]¸¸£ú ¢ˆÅ‡ íÿ, ¢]¸›¸Ÿ¸½¿ 6 ‚¸¨¸¸¬¸ ¢¨¸î¸ fourteen issuances of Residential Mortgage Backed
ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ ‡ˆÅ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ ˆ½Å 38,809 ¬¸½ ‚¢š¸ˆÅ Securities (RMBS) aggregating to Rs.862.20 crore
involving over 38,809 individual home loans of six
¨¸¾¡¸¢Æ÷¸ˆÅ Š¸¼í †µ¸ ¬¸¿¤¸Ö íÿA ¡¸˜¸¸ 31 Ÿ¸¸\¸Ä, 2008 ˆÅ¸½ ƒ›¸ ¢›¸Š¸ÄŸ¸¸½¿ ˆÅ¸
Housing Finance Companies and one Scheduled
¤¸ˆÅ¸¡¸¸ Ÿ¸»¥¸š¸›¸ 236.31 ˆÅ£¸½”õ ² œ¸‡ ˜¸¸A Commercial Bank. As on March 31, 2008 the principal
outstanding of the issues were Rs. 236.31 crore.

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›¸¨¸ú›¸÷¸Ÿ¸ ‹¸’›¸¸ÇÅŸ¸ À- Recent developments

ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸¾ÿˆÅ ›¸½ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ¤¸¸{¸¸£ ˆ½Å ¢¨¸ˆÅ¸¬¸ ˆ½Å ‚¸©¸¡¸ ¬¸½ Reserve Bank of India (RBI) issued guidelines in
February, 2006 to cover the Securitisation transactions
œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸ ˆÅ¸ ¥¸½›¸™½›¸ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œ¸€£¨¸£ú, 2006 Ÿ¸½¿ ¢™©¸¸-
with the intention to develop the Securitisation market.
¢›¸™½Ä©¸ ]¸¸£ú ¢ˆÅ‡ ˜¸½A ƒ›¸ ¢™©¸¸-¢›¸™½Ä©¸¸½¿ Ÿ¸½¿ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸Š¸÷¸ ¥¸½›¸™½›¸ The guidelines defined the Securitisation transactions
œ¸¢£ž¸¸¢«¸÷¸ ¢ˆÅ‡ Š¸‡ ‚¸¾£ œÏ¢÷¸ž¸»¢÷¸ˆÅ£µ¸Š¸÷¸ ¥¸½›¸™½›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¤¸ÿˆÅˆÅ¸£ú and also laid down the basic rules for the banking sector
to undertake securitization transaction.
®¸½°¸ í½÷¸º œÏ¸˜¸¢Ÿ¸ˆÅ ¢›¸¡¸Ÿ¸ ž¸ú ¢›¸š¸¸Ä¢£÷¸ ¢ˆÅ‡ Š¸‡ ˜¸½A
l Securities and Exchange Board of India (SEBI)
l ž¸¸£÷¸ú¡¸ œÏ¢÷¸ž¸»¢÷¸ ‚¸¾£ ¢¨¸¢›¸Ÿ¸¡¸ ¤¸¸½”Ä ›¸½ Š¸¸¾µ¸ ¤¸¸{¸¸£ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ introduced guidelines in May 2008 on listing of
Securitised debt to bring transparency and liquidity
¤¸¸{¸¸£ Ÿ¸½¿ œ¸¸£™¢©¸Ä÷¸¸ ‚¸¾£ \¸¥¸¢›¸¢š¸ ¥¸¸›¸½ ˆ½Å ¢¥¸‡ œÏ¢÷¸ž¸»¢÷¸ˆ¼Å÷¸ †µ¸¸½¿ in the market through development of secondary
market which in turn would further propel the
ˆÅ¸½ ¬¸»\¸ú¤¸Ö ˆÅ£›¸½ œ¸£ Ÿ¸ƒÄ, 2008 Ÿ¸½¿ ¢™©¸¸-¢›¸™½Ä©¸ ¥¸¸Š¸» ¢ˆÅ‡ ˜¸½ A
growth of Securitisation market.

l ž¸¸£÷¸ú¡¸ ¬¸›¸™ú ¥¸½‰¸¸ˆÅ¸£ ¬¸¿¬˜¸¸›¸ ¥¸½‰¸¸¿ˆÅ›¸ Ÿ¸¸›¸ˆÅ 30-¢¨¸î¸ú¡¸ l Institute of Chartered Accountants of India (ICAI) is
in the process of finalizing the Accounting Standards
¢¥¸‰¸÷¸½¿ ‚¢ž¸±¸¸›¸ ‚¸¾£ Ÿ¸¸œ¸›¸ ˆÅ¸½ ‚¿¢÷¸Ÿ¸ ³œ¸ ™½›¸½ ˆÅú œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ í¾ A 30-Financial Instruments: Recognition and
Measurement.

8.8.3 Information Technology (IT) - New

8.8.3 ¬¸»\¸›¸¸ œÏ¸¾Ô¸¸½¢Š¸ˆÅú ˆÅú ›¸ƒÄ œ¸í¥¸½¿ Initiatives

¨¸«¸Ä ˆ½Å ™¸¾£¸›¸, ‚›¸½ˆÅ ›¸‡ ¬¸»\¸›¸¸ œÏ¸¾Ô¸¸½¢Š¸ˆÅú ˆÅ¸¡¸ÄÇÅŸ¸ ¤¸ÿˆÅ ׸£¸ ©¸º³ ¢ˆÅ¡¸½ Š¸‡ During the year, a number of new IT initiatives have
been taken by the Bank to smoothen the internal
íÿ ÷¸¸¢ˆÅ ¤¸ÿˆÅ ˆÅú ‚¸›÷¸¢£ˆÅ ˆÅ¸¡¸ÄœÏµ¸¸¥¸ú ¬¸ºŠ¸Ÿ¸÷¸¸œ¸»µ¸Ä í¸½ ¨¸½ ˆÅ¸¡¸ÄÇÅŸ¸
functioning of the Bank. They can be listed as below:
¢›¸Ÿ›¸¸›¸º¬¸¸£ íÿ -
a) Implementation of SAP: The Bank had chosen
ˆÅ) ¬¸¾œ¸ ˆÅ¸ ¢ÇÅ¡¸¸›¨¸¡¸›¸ À ¤¸ÿˆÅ ›¸½ ‚œ¸›¸½ ¬¸ž¸ú ˆÅ¸¡¸¸½ô ˆ½Å ˆ¿Åœ¡¸»’£úˆÅ£µ¸ SAP as the enterprise level software for
computerization of all its operations. This is a
ˆ½Å ¢¥¸‡ ‡¿’£œÏ¸ƒ]¸ ¥¸½¨¸¥¸ ¬¸¸ÁÉ’¨¸½¡¸£ ˆ½Å ³œ¸ Ÿ¸½¿ ¬¸¾œ¸ ˆÅ¸ \¸¡¸›¸ ¢ˆÅ¡¸¸
milestone in the integration of business
í¾ ¡¸í ˆÅ¸£¸½¤¸¸£ú œÏ¢ÇÅ¡¸¸‚¸½¿ ˆ½Å ‡ˆÅúˆÅ£µ¸ ‚¸¾£ ˆ½Å›Íúˆ¼Å÷¸ ¥¸½‰¸¸¿ˆÅ›¸
processes and beginning of centralized
ˆÅ¸½ ©¸º³ ˆÅ£›¸½ ˆÅú ¢™©¸¸ Ÿ¸½¿ ‡ˆÅ Ÿ¸ú¥¸ ˆÅ¸ œ¸÷˜¸£ í¾ A accounting.

‰¸) í¸„¢¬¸¿Š¸ ƒ¿ûŸŸ¸½Ä©¸›¸ œ¸¸½’Ä¥¸ (‡\¸‚¸ƒÄœ¸ú) À ‚¸¨¸¸¬¸ ¢¨¸î¸ b) Housing Information Portal (HIP): To create
customer awareness on issues related to
‚¸¾£ ‚¸¨¸¸¬¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¢¨¸«¸¡¸¸½¿ ˆ½Å ¤¸¸£½ Ÿ¸½¿ ŠÏ¸íˆÅ¸½¿ ˆÅú ]¸¸Š¸³ˆÅ÷¸¸
housing finance and housing, a Housing
¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡, ‡ˆÅ í¸„¢¬¸¿Š¸ ƒ¿ûŸŸ¸½Ä©¸›¸ œ¸¸½’Ä¥¸ (‡\¸‚¸ƒÄœ¸ú) ¨¸«¸Ä ˆ½Å Information Portal (HIP) was developed during
™¸¾£¸›¸ ¢¨¸ˆÅ¢¬¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ œ¸¸½’Ä¥¸ ‚¸¾œ¸\¸¸¢£ˆÅ ³œ¸ ¬¸½ ‚¸£¿ž¸ ˆÅ£›¸½ the year. The portal is ready for formal launch.
ˆ½Å ¢¥¸‡ ÷¸¾¡¸¸£ í¾ A
c) Disaster Recovery Management: To Protect the
Bank from the impact of natural and man-made
Š¸) ‚¸œ¸™¸ £¸í÷¸ œÏ¤¸¿š¸›¸ À ¤¸ÿˆÅ ˆÅú œÏ¸ˆ¼Å¢÷¸ˆÅ ‚¸¾£ Ÿ¸¸›¸¨¸ú¡¸ ‚¸œ¸™¸‚¸½¿
disasters and to ensure business continuity, the
¬¸½ ¬¸º£®¸¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚¸¾£ ˆÅ¸£¸½¤¸¸£ ˆÅ¸½ ¥¸Š¸¸÷¸¸£ ¬¸º\¸¸³ ¤¸›¸¸¡¸½ Disaster Recovery (DR) Site at Mumbai
£‰¸›¸¸ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, Ÿ¸ºŸ¤¸ƒÄ ®¸½°¸ú¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸ Ÿ¸½¿ ‚¸œ¸™¸ Regional Office has been made operational
£¸í÷¸ ¬¸¸ƒ’ ˆÅ¸½ ûÅ£¨¸£ú 2008 ¬¸½ \¸¸¥¸» ˆÅ£ ¢™¡¸¸ Š¸¡¸¸ í¾ A since February 2008.

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‚š¡¸¸¡¸ 9 À í¸„¢¬¸¿Š¸ Ÿ¸¸ƒÇŸ½ ûŸƒ›¸½¿¬¸ À ¬¸¿ˆÅ¥œ¸›¸¸ ‡¨¸¿ ¢¬˜¸¢÷¸

Chapter 9: Housing Micro Finance: Concepts & Status

9.1 Microfinance
9.1 Ÿ¸¸ƒÇŸ½ûŸƒ›¸½¿¬¸ (¬¸»®Ÿ¸/¨¡¸¢«’ ¢¨¸î¸)
9.1.1 Defining Microfinance
9.1.1 Ÿ¸¸ƒÇŸ½ûŸƒ›¸½¿¬¸ ˆÅú œ¸¢£ž¸¸«¸¸
The Micro Finance Sector (Development and
Ÿ¸¸ƒÇŸ½½ ¢¨¸î¸ ®¸½°¸ (¢¨¸ˆÅ¸¬¸ ‡¨¸¿ ¢¨¸¢›¸¡¸Ÿ¸›¸) ¢¨¸š¸½¡¸ˆÅ, 2007 Ÿ¸½¿ ’Ÿ¸¸ƒÇŸ½ Regulation) Bill 2007 has defined “Micro Finance”
¢¨¸î¸’ ¬¸½¨¸¸‚¸½¿ ˆÅ¸½ "¢ˆÅ¬¸ú ¨¡¸¢Æ÷¸ ¡¸¸ œ¸¸°¸ ŠÏ¸íˆÅ ˆÅ¸½ ¡¸¸ ÷¸¸½ œÏ÷¡¸®¸ ¡¸¸ ¢ˆÅ¬¸ú services as “providing financial assistance to an
individual or eligible client either directly or through a
ŠÏºœ¸ œÏµ¸¸¥¸ú ˆÅ½ Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ˆ½Å ¢¥¸‡ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ ™½›¸¸ À
group mechanism for:

(i) ¢ˆÅ¬¸ú ¨¡¸¢Æ÷¸ ˆÅ¸½ ˆºÅ¥¸ ‚¢š¸ˆÅ÷¸Ÿ¸ œ¸\¸¸¬¸ í]¸¸£ ²œ¸¡¸½ ˆÅú £¸¢©¸, (i) an amount, not exceeding rupees fifty thousand
Ž¸½’½ ¨¸ ¥¸‹¸º „Ô¸Ÿ¸, ˆ¼Å¢«¸, ¬¸¿¤¸¿¢š¸÷¸ ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸¸½¿ ˆ½Å ¢¥¸‡ („¬¸ in aggregate per individual, for small and tiny
enterprise, agriculture, allied activities
¨¡¸¢Æ÷¸ ˆ½Å „œ¸ž¸¸½Š¸ í½÷¸º ¬¸¢í÷¸), ¡¸¸ (including for consumption purposes of such
individual), or
(ii) ¢ˆÅ¬¸ú ¨¡¸¢Æ÷¸ ˆÅ¸½ ‚¸¨¸¸¬¸ í½÷¸º ˆºÅ¥¸ ‚¢š¸ˆÅ÷¸Ÿ¸ ‡ˆÅ ¥¸¸‰¸ ²œ¸¡¸½ ˆÅú
£¸¢©¸, (ii) an amount, not exceeding rupees one lakh fifty
thousand in aggregate per individual for
housing purposes
(iii) ˆºÅŽ ‚›¡¸ £¸¢©¸, „Æ÷¸ Ÿ¸™ (i) ¨¸ (ii) Ÿ¸½¿ „¢¥¥¸¢‰¸÷¸ ¢ˆÅ¬¸ú œÏ¡¸¸½]¸›¸
¡¸¸‚›¡¸œÏ¡¸¸½]¸›¸¸½¿ ˆÅ½ ¢¥¸‡,]¸¸½ ž¸ú¢›¸š¸¸Ä£µ¸¢ˆÅ¡¸¸Š¸¡¸¸í¸½A (iii) such other amounts, for any of the purposes
mentioned at items (i) and (ii) above or other
¢¨¸š¸½¡¸ˆÅ Ÿ¸½¿ "œ¸¸°¸ ŠÏ¸íˆÅ" ˆÅ¸½ ž¸ú œ¸¢£ž¸¸¢«¸÷¸ ˆÅ£÷¸½ íº‡ ¬¨¸ ¬¸í¸¡¸÷¸¸ ŠÏºœ¸ ˆ½Å purposes, as may be prescribed
¢ˆÅ¬¸ú ¬¸™¬¡¸ ¡¸¸ ¬¨¸¡¸ ¬¨¸ ¬¸í¸¡¸÷¸¸ ŠÏºœ¸ ˆÅ¸½ íú ¡¸¸ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ¢ˆÅ¬¸ú ‡ˆÅ
The bill has also defined “eligible client” as any member
ª½µ¸ú Ÿ¸½¿ ‚¸›¸½ ¨¸¸¥¸½ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸í¸¡¸÷¸¸ ˆÅ£›¸½ ˆ½Å œÏ¡¸¸½]¸›¸¸˜¸Ä Š¸¢“÷¸ ¢ˆÅ¬¸ú of a self help group or a self help group itself or any other
‚›¡¸ ŠÏºœ¸ ˆ½Å ³œ¸ ˆÅ¸½ ˆÅí¸ Š¸¡¸¸ í¾, ¡¸˜¸¸ - groups formed for the purposes of providing
microfinance services belonging to any one of the
(i) ¢ˆÅ¬¸¸›¸ ¢]¸›¸ˆ½Å œ¸¸¬¸ ™¸½ ‡ˆÅ”õ ¬¸½ ‚¢š¸ˆÅ ˆ¼Å¢«¸ ¡¸¸½Š¡¸ ž¸»¢Ÿ¸ ›¸ í¸½ ¡¸¸ following categories namely

ˆ¼Å¢«¸ ¡¸¸½Š¡¸ ž¸»¢Ÿ¸ ˆÅ¸ ¨¸í ®¸½°¸ ¢]¸¬¸½ ¢›¸š¸¸Ä¢£÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¸½, (i) farmers owning not more than two hectares of
agricultural land or such area of agricultural land
(ii) ¥¸¸ž¸ ›¸ ˆÅŸ¸¸›¸½ ¨¸¸¥¸½ ˆ¼Å«¸ˆÅ ¢]¸›¸Ÿ¸½¿ Ÿ¸¸¾¢‰¸ˆÅ œ¸Ø¸š¸¸£ˆÅ, ¢ˆÅ£¸¡¸½™¸£, as may be described;
„œ¸]¸ Ÿ¸½¿ ¢í¬¬¸½™¸£
(ii) disadvantaged cultivators of agricultural land
including oral lessees, tenants, share croppers
(iii) ž¸»¢Ÿ¸í£ ª¢Ÿ¸ˆÅ ‚¸¾£ œÏ¨¸¸¬¸ú ª¢Ÿ¸ˆÅ
(iii) landless labourers and migrant labourers
(iv) Ž¸½’½ ¨¸ ¥¸‹¸º ‚¸¢˜¸ÄˆÅ Š¸¢÷¸¢¨¸¢š¸¡¸¸¿ ˆÅ£›¸½ ¨¸¸¥¸½ ™¬÷¸ˆÅ¸£, Ÿ¸¸ƒÇŸ-
„Ô¸Ÿ¸ú ‚¸¾£ ¨¡¸¢Æ÷¸, (iv) artisans, micro-entrepreneurs and persons
engaged in small and tiny economic activities
(v) Ÿ¸¢í¥¸¸‡¿,
(v) women
(vi) ‚›¡¸ ª½¢µ¸¡¸¸¿ ¢]¸›¸ˆÅ¸ ¢›¸š¸¸Ä£µ¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ í¸½
(vi) such other categories as may be prescribed

131
9.1.2 ž¸¸£÷¸ Ÿ¸½¿ Ÿ¸¸ƒÇŸ½ûŸƒ›¸½¿¬¸ 9.1.2 Microfinance Sector in India

¬¸¸-š¸›¸ ‡ˆÅ ¬¸Ÿ¸º™¸¡¸ ¢¨¸ˆÅ¢¬¸÷¸ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸ ¬¸¿Š¸“›¸ í¾, ¢]¸¬¸½ ¬¸½¨¸¸ Sa-Dhan, the association of community development
¤¸ÿˆÅ, š¸›¸ ›¡¸¸¬¸ ¨¸ ‚›¡¸ ˆ½Å ׸£¸ 1999 Ÿ¸½¿ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸, ]¸¸½ ¬¸»®Ÿ¸ finance institutions founded by SEWA Bank, Dhan
(Ÿ¸¸ƒÇŸ½) ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ¢¨¸¬÷¸¼÷¸ ‡¨¸¿ ¨¸¸¢«¸ÄˆÅ ¬¸¿‰¡¸¸ ˆÅú ¬¸»\¸›¸¸ Foundation and others in 1999, brings out a
comprehensive, annual document providing information
„œ¸¥¸¤š¸ ˆÅ£¸÷¸¸ í¾ Ÿ¸¸\¸Ä 2008 ˆÅ¸½ ¨¸«¸Ä ¬¸Ÿ¸¸¢œ÷¸ ÷¸ˆÅ, ¬¸¸-š¸›¸ Ÿ¸½¿ ‡ˆÅ ¢£œ¸¸½’Ä
on a number of microfinance institutions. For the year
œÏˆÅ¸¢©¸÷¸ ˆÅú Š¸ƒÄ í¾ ¢]¸¬¸Ÿ¸½¿ 223 Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ]¸¸›¸ˆÅ¸£ú ™ú Š¸ƒÄ í¾ ended March 31, 2008, Sa-Dhan has brought out the
¢£œ¸¸½’Ä ˆ½Å ‚›¸º¬¸¸£, Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ˆÅ¸¡¸ÄˆÅ¥¸¸œ¸¸½¿ Ÿ¸½¿ ÷¸½]¸ú ¬¸½ ¨¸¼¢Ö í¸½ report which provides information on 223 MFIs. As per
the report, the outreach and portfolio size of the MFIs
£íú í¾ ŠÏ¸íˆÅ¸½¿ ˆÅú ¬¸¿‰¡¸¸ ¨¸«¸Ä 2007-08 ˆ½Å ™¸¾£¸›¸ 10.04 ¬¸½ ¤¸[õ ˆÅ£ 14.1
have been increasing fast. The clients outreach
¢Ÿ¸¢¥¸¡¸›¸ í¸½ Š¸ƒÄ Ÿ¸¸\¸Ä 2008 ˆ½Å ‚¿÷¸ Ÿ¸½¿ †µ¸ Ÿ¸™ Ÿ¸½¿ 59.54 ¢¤¸¢¥¸¡¸›¸ ²œ¸¡¸½ increased from 10.04 to 14.1 million over the year 2007-
¤¸ˆÅ¸¡¸¸ ˜¸½ ƒ¬¸ œÏˆÅ¸£ œÏ¢÷¸ ŠÏ¸íˆÅ ¤¸ˆÅ¸¡¸¸ ‚¸¾¬¸÷¸ †µ¸ £¸¢©¸ 3442 ²œ¸¡¸½ ¬¸½ 08. The loan portfolio outstanding was Rs 59.54 billion
¤¸[õ ˆÅ£ 4222 ²œ¸¡¸½ í¸½ Š¸ƒÄ ]¸¤¸¢ˆÅ 80 œÏ¢÷¸©¸÷¸ ŠÏ¸íˆÅ Ÿ¸¢í¥¸¸‡¿ íÿ, 75 as at the end of March 2008. The average loan
outstanding per client increased from Rs 3,442 to Rs
œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ŠÏ¸íˆÅ¸½¿ ›¸½ 10,000 ² œ¸¡¸½ ¬¸½ ˆÅŸ¸ †µ¸ ¢¥¸¡¸¸ í¾ A
4,222. While 80 per cent of the clients were women,
more than 75 per cent of the clients had received loans
less than Rs 10,000.
9.1.3 ž¸¸£÷¸ Ÿ¸½¿ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸ ®¸½°¸¨¸¸£ ¤¡¸¸½£¸
9.1.3 Geographical spread of MFIs in India

Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ™¢®¸µ¸ú £¸]¡¸¸½¿ ¡¸˜¸¸ ‚¸¿šÏ œÏ™½©¸, ˆÅ›¸¸Ä’ˆÅ ‚¸¾£
MFIs have strong presence in the southern states of
÷¸¢Ÿ¸¥¸›¸¸”º Ÿ¸½¿ Ÿ¸]¸¤¸»÷¸ ¢¬˜¸¢÷¸ í¾ ¢]¸›¸Ÿ¸½¿ ŠÏ¸íˆÅ¸½¿ ˆÅ¸ ¥¸Š¸ž¸Š¸ ‚¸¾¬¸÷¸ 52 Andhra Pradesh, Karnataka and Tamil Nadu which
œÏ¢÷¸©¸÷¸ í¾ ‚¸¾£ ƒ¬¸ Ÿ¸™ Ÿ¸½¿ ¤¸ˆÅ¸¡¸¸ £¸¢©¸ 59 œÏ¢÷¸©¸÷¸ í¾ ¡¸¢™ ퟸ ‚›¡¸ ÷¸ú›¸ accounted for about 52 per cent of their clients and 59
per cent of their portfolio. By including the states of
¤¸½í÷¸£ £¸]¡¸¸½¿ ¡¸˜¸¸ „”õú¬¸¸, œ¸¢©\¸Ÿ¸ ¤¸¿Š¸¸¥¸ ‚¸¾£ Ÿ¸í¸£¸«’ï ˆÅ¸½ ¥¸½¿, ]¸í¸¿
Orissa, West-Bengal and Maharashtra, the percentage
Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ŠÏ¸íˆÅ¸½¿ ˆÅú ¬¸¿‰¡¸¸ ¥¸Š¸ž¸Š¸ 82 œÏ¢÷¸©¸÷¸ œ¸íº¿\¸ ]¸¸÷¸ú of MFIs cliental all together climbs at 82 per cent. The
í¾ \¸¸£ ¢ž¸››¸ ®¸½°¸¸½¿ ˆÅ¸ ‚¸¾¬¸÷¸ ¤¸ˆÅ¸¡¸¸ ¢›¸Ÿ›¸¸›¸º¬¸¸£ í¾ À- average loan size (per borrower) in four different
regions is given as under.

®¸½°¸ ‚¸¾¬¸÷¸ œÏ¢÷¸ ¨¡¸¢Æ÷¸ †µ¸ £¸¢©¸ (² œ¸¡¸½) izfr O;fDr

(³Å. ˆÅ£¸½”õ¸½¿ Ÿ¸½¿)
Region Average loan size (in Rs)(per individual)

œ¸»¨¸Ä East 3,126

„ North 6,323
™¢®¸µ¸ South 4,735
œ¸¢©\¸Ÿ¸ West 1,924

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9.1.4 Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ ú ¢¨¸¢ž¸››¸ ¢ˆÅ¬Ÿ¸¸½¿ ˆÅú ¤¸¸]¸¸£ Ÿ¸½¿ 9.1.4 Market share of different forms of MFIs
¢í¬¬¸½™¸£ú
The MFIs can be broadly sub-divided into three
Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¬¸¿Š¸“›¸¸÷Ÿ¸ˆÅ ‚¸š¸¸£ œ¸£ Ÿ¸¸½’½÷¸¸¾£ ¬¸½ ÷¸ú›¸ ª½¢µ¸¡¸¸½¿ Ÿ¸½¿ categories, in terms of their organisational structure:
„œ¸-¢¨¸ž¸¸¢]¸÷¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ À
a) Not-for Profit MFIs
ˆÅ) ¥¸¸ž¸ ›¸ ˆÅŸ¸¸›¸½ ¨¸¸¥¸½ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸
l Societies registered under the Societies
¬¸¢Ÿ¸¢÷¸ œ¸¿]¸úˆÅ£µ¸ ‚¢š¸¢›¸¡¸Ÿ¸, 1860 ¡¸¸ ¬¸Ÿ¸¸›¸ £¸]¡¸ ‚¢š¸¢›¸¡¸Ÿ¸¸½¿ ˆ½Å
Registration Act, 1860 or similar State Acts
÷¸í÷¸ œ¸¿]¸úˆ¼Å÷¸ ¬¸¢Ÿ¸¢÷¸¡¸¸¿ A
ž¸¸£÷¸ú¡¸ ›¡¸¸¬¸ ‚¢š¸¢›¸¡¸Ÿ¸, 1882 ˆ½Å ÷¸í÷¸ œ¸¿]¸úˆ¼Å÷¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ l Public Trusts registered under the Indian Trust Act,
›¡¸¸¬¸ 1882
ˆ¿Åœ¸›¸ú ‚¢š¸¢›¸¡¸Ÿ¸, 1956 ˆÅú š¸¸£¸ 25 ˆ½Å ÷¸í÷¸ œ¸¿]¸úˆ¼Å÷¸ ¥¸¸ž¸ ›¸
ˆÅŸ¸¸›¸½ ¨¸¸¥¸ú ˆ¿Åœ¸¢›¸¡¸¸¿ A l Non-profit Companies registered under Section-25
of the Companies Act, 1956b)

‰¸) ‚¸œ¸¬¸ú ¥¸¸ž¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸ b) Mutual Benefit MFIs

‚¸œ¸¬¸ú ¬¸í¸¡¸÷¸¸ ¨¸¸¥¸ú ¢¨¸î¸ú¡¸ ¬¸¢Ÿ¸¢÷¸¡¸¸¿
l Mutually Aided Co-operative Societies

Š¸) ¥¸¸ž¸ ˆÅŸ¸¸›¸½ ¨¸¸¥¸½ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ¢¥¸‡ c) For Profit MFIs
ˆ¿Åœ¸›¸ú ‚¢š¸¢›¸¡¸Ÿ¸, 1956 ˆ½Å ÷¸í÷¸ œ¸¿]¸úˆ¼Å÷¸ Š¸¾£ ¤¸ÿ¢ˆ¿ÅŠ¸ ¢¨¸î¸ú¡¸
ˆ¿Åœ¸¢›¸¡¸¸¿ l Non Banking Financial Companies (NBFCs),
registered under the Companies Act, 1956
¢¨¸¢ž¸››¸ ¢¨¸¢š¸ˆÅ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆÅú ¤¸¸]¸¸£ Ÿ¸½¿ ¢í¬¬¸½™¸£ú ¢›¸Ÿ›¸¸›¸º¬¸¸£ í¾ À
The market share of different forms of MFIs is as
follows:

¤¸¸]¸¸£ Ÿ¸½¿ ¢í¬¬¸¸ (†µ¸ Ÿ¸™)

¢¨¸¢š¸ˆÅ ûŸŸ¸Ä Legal form Percentage share of market
in terms of loan portfolio

Š¸¾£ ¤¸ÿ¢ˆ¿ÅŠ¸ ¢¨¸î¸ú¡¸ ˆ¿Åœ¸¢›¸¡¸¸¿ NBFCs 59.7 %

(ˆ¿Åœ¸›¸ú ‚¢š¸¢›¸¡¸Ÿ¸, 1956 ˆÅú š¸¸£¸ 52 ˆ½Å ÷¸í÷¸) ˆ¿¿Åœ¸¢›¸¡¸¸¿ Companies (u/s 25 of the
Companies Act,1956) 11.6 %

(¬¸¸½¬¸¸¡’ú œ¸¿]¸ú¡¸›¸ ‚¢š¸¢›¸¡¸Ÿ¸, 1960 ˆ½Å ÷¸í÷¸ œ¸¿]¸úˆ¼Å÷¸) ¬¸¸½¬¸¸¡¸’ú Societies(RegisteredunderSociety 18.8 %

(ž¸¸£÷¸ú¡¸ ›¡¸¸¬¸ ‚¢š¸¢›¸¡¸Ÿ¸, 1882 ˆ½Å ÷¸í÷¸ œ¸¿]¸úˆ¼Å÷¸) ›¡¸¸¬¸ Registration Act, 1860) 6.8 %
Trusts (Registered under
Indian Trust Act, 1882)

‚›¡¸ Others 3.1 %

ˆºÅ¥¸ Total 100 %

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9.1.5 Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ ú œÏµ¸¸¢¥¸¡¸¸¿ ‡¨¸¿ œÏ¢ÇÅ¡¸¸‡¿ 9.1.5 Systems and Processes of MFIs

¡¸í œ¸¸¡¸¸ Š¸¡¸¸ í¾ ¢ˆÅ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ ú œÏµ¸¸¢¥¸¡¸¸¿ ‡¨¸¿ œÏ¢ÇÅ¡¸¸‡¿ It has been observed that the MFIs have well developed
¬¸º¢¨¸ˆÅ¢¬¸÷¸ íÿ ‚¸¾£ ¬¸¿ŠÏíµ¸ ˆÅú ‚\Žú œÏ¢ÇÅ¡¸¸ í¾ ¢¨¸©¸½«¸÷¸¸‚¸½¿ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ íÿÀ- systems and processes and have good collection
mechanisms. The features include:
‡ˆÅ ¬¸º¢¨¸ˆÅ¢¬¸÷¸ ‡Ÿ¸‚¸ƒÄ‡¬¸ œÏµ¸¸¥¸ú ]¸¸½ ¤¸ˆÅ¸¡¸¸ £¸¢©¸¡¸¸½¿ œ¸£ ¥¸Š¸¸÷¸¸£ l A well developed MIS system which regularly
š¡¸¸›¸ £‰¸÷¸ú í¾ ¡¸í œ¸¸¡¸¸ Š¸¡¸¸ í¾ ¢ˆÅ ™¾¢›¸ˆÅ Ÿ¸¸¿Š¸ ¬¸¿ŠÏíµ¸ œ¸°¸ˆÅ ÷¸¾¡¸¸£ tracks over dues. It has been observed that a daily
¢ˆÅ¡¸¸ ]¸¸¡¸½ ‚¸¾£ ¨¸¬¸»¥¸ú ˆ½Å ¢¥¸‡ ûÅú¥” ‡]¸½¿’¸½¿ ˆÅ¸½ ¬¸¸ÿœ¸ ¢™¡¸¸ ]¸¸¡¸½A demand collection sheet is generated and handed
over to the field agents for recovery.
‚\Žú ¢›¸Š¸£¸›¸ú œÏµ¸¸¢¥¸¡¸¸¿ ¢]¸›¸Ÿ¸½½¿ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å †µ¸
l Good monitoring systems which includes regular
‚¢š¸ˆÅ¸¢£¡¸¸½¿ ׸£¸ ¢›¸¡¸¢Ÿ¸÷¸ ûÅú¥” ™¸¾£½ ‚¸¾£ œ¸¡¸Ä¨¸½®¸µ¸ ©¸¸¢Ÿ¸¥¸ í¾A field visits and supervision by the loan officers of
the MFIs.
Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆ½Å ˆÅŸ¸Ä\¸¸£ú †¢µ¸¡¸¸½¿ ¬¸½ ¢›¸¡¸¢Ÿ¸÷¸ ¬¸Ÿœ¸ˆÄÅ Ÿ¸½¿ £í÷¸½ íÿ
‚¸¾£ ¡¸¢™ †¢µ¸¡¸¸½¿ ˆÅ¸½ ˆÅ¸½ƒÄ ¬¸Ÿ¸¬¡¸¸ í¸½÷¸ú í¾ ÷¸¸½ ¨¸½ „¬¸ˆÅ¸ ÷¸º£¿÷¸ ¬¸Ÿ¸¸š¸¸›¸ l The staff of the MFIs maintains regular contacts
with the borrowers and whatever issues may arise
ˆÅ£ ™½÷¸½ íÿ, ¢]¸¬¸¬¸½ †µ¸ Ÿ¸™ Ÿ¸½¿ ¬¸º¨¡¸¨¸¬˜¸¸ ¤¸›¸ú £í÷¸ú í¾A for the borrowers are immediately sorted out by
them, thereby ensuring the existence of a healthy
Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ¨¸¬¸»¥¸ú ˆÅ¸ ‚¸¾¬¸÷¸ ¬¸¸Ÿ¸¸›¡¸÷¸¸ 97-99 œÏ¢÷¸©¸÷¸ loan portfolio.
£í÷¸¸ í¾A
l The recovery percentage of the MFIs generally
varies from 97-99 per cent.
9.1.6 ‚¸¨¸¸¬¸ Ÿ¸½¿ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ¬¸º¬¸¿Š¸÷¸÷¸¸
9.1.6 Rationale for MFIs in Housing
¨¸½ ¢¨¸©¸½«¸÷¸¸‡¿ ¢]¸›¸ˆ½Å ˆÅ¸£µ¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œ¸¸›¸½ ˆ½Å ¢¥¸‡ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ®¸½°¸
The features which make the microfinance sector
‚¸ˆÅ«¸ÄˆÅ ¤¸›¸¸ £í÷¸¸ í¾ À attractive for delivering housing finance are:

Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸ ¢›¸š¸Ä›¸¸½¿ ˆÅ¸½ ¬¸Ÿ¸¡¸ œ¸£ ‚¸¾£ œ¸¡¸¸Äœ÷¸ †µ¸ ¨¸ ‚›¡¸
¢¨¸î¸ú¡¸ ¬¸½¨¸¸‡¿ „›¸ˆ½Å ¢›¸ˆÅ’ íú „œ¸¥¸¤š¸ ˆÅ£¸÷¸½ íÿ ¢]¸¬¸¬¸½ ‚›¡¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú
÷¸º¥¸›¸¸ Ÿ¸½¿ ƒ¬¸½ …¿\¸¸ ¬˜¸¸›¸ ¢Ÿ¸¥¸÷¸¸ í¾, ƒ›í½½¿ ¢›¸š¸Ä›¸¸½¿ ˆÅú ¬¸Ÿ¸¬¡¸¸‚¸½¿ ˆÅú ž¸ú
¤¸½í÷¸£ ]¸¸›¸ˆÅ¸£ú í¸½÷¸ú í¾A
l MFIs provide timely and adequate credit and other
financial services to the poor at their doorstep and
this gives them an edge over other institutions as
they have greater understanding of the issues
concerning the poor.

Š¸£ú¤¸ †¢µ¸¡¸¸½¿ ˆ½Å †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ ˆ½Å ¤¸¸£½ Ÿ¸½¿ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ l The credit histories of the poor borrowers have
been established by the MFIs as these borrowers
]¸¸›¸ˆÅ¸£ú í¸½÷¸ú í¾ Æ¡¸¸½¿¢ˆÅ ¨¸½ †µ¸ú ¢›¸¡¸¢Ÿ¸÷¸ ³œ¸ ¬¸½ †µ¸ ¥¸½÷¸½ ‚¸¾£ \¸ºˆÅ÷¸¸
have been taking and repaying loans on a regular
ˆÅ£÷¸½ £í÷¸½ íÿA basis.

Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ Ÿ¸½¿ †µ¸ ¬¸¿¢¨¸÷¸£µ¸ ‚¸¾£ ¬¸¿ŠÏíµ¸ ˆÅú ¬¸º¬˜¸¸¢œ¸÷¸ l MFIs have well-established systems and
œÏµ¸¸¢¥¸¡¸¸¿ ¨¸ œÏ¢ÇÅ¡¸¸‡¿ í¸½÷¸ú íÿA procedures for distributing and collecting loans.

l Most of the MFIs have maintained recovery rates in

‚¢š¸ˆÅ¸¿©¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ¨¸¬¸»¥¸ú ™£ 95 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ í¾A excess of 95 per cent.

l Very few MFIs have ventured into providing

¤¸íº÷¸ íú ˆÅŸ¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ›¸½ ¢›¸š¸Ä›¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸ †µ¸ ™½›¸½ ˆÅú
housing loans to the poor. The micro enterprise
¢íŸŸ¸÷¸ ˆÅú í¾A Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ Ÿ¸¸ƒÇŸ½ „Ô¸Ÿ¸ †µ¸ ¤¸íº÷¸ Ž¸½’ú loans given by the MFIs are for small amounts and
£¸¢©¸ ‚¸¾£ ˜¸¸½”õ½ ¬¸Ÿ¸¡¸ ˆ½Å ¢¥¸‡ ¢™¡¸½ ]¸¸÷¸½ íÿ ]¸¤¸¢ˆÅ ‚¸¨¸¸¬¸ †µ¸¸½¿ ˆ½Å ¢¥¸‡ for shorter periods whereas housing loans will
¤¸”õú £¸¢©¸ ™½›¸ú í¸½÷¸ú í¾ ‚¸¾£ ¢]¸¬¸ˆÅú ‚¨¸¢š¸ ž¸ú ¥¸Ÿ¤¸ú í¸½÷¸ú í¾A ‚÷¸À involve larger amounts of money and will be for
Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅú ¢¨¸î¸ú¡¸ ®¸Ÿ¸÷¸¸ ¤¸[õ¸›¸½ ˆÅú ]¸³£÷¸ í¾ ÷¸¸¢ˆÅ ¨¸½ longer tenure. There is a need therefore to tap the
¢›¸š¸Ä›¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸ †µ¸ ¬¸¿¢¨¸÷¸¢£÷¸ ˆÅ£ ¬¸ˆ½¿ÅA potential of MFIs which can provide housing loans
to the poor.
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9.2 Defining Housing Microfinance

Housing Microfinance can be defined as Loan product
taken by a Self Help or Joint Liability Group member for
Housing purposes. The principles of Microfinance are
followed here, like small amount of loan taken for
shorter term compared to a normal housing finance on
alternative forms of collateral. The word ’housing’ is
referring to progressive construction of house or home
improvement works, or in some cases construction of
new house or purchasing a new house or acquiring land.
The upper limit of a Housing Micro Finance (HMF) loan
can be up to Rs. 1.5 lakh.

‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ˆÅú Ÿ¸º‰¡¸ ¢¨¸©¸½«¸÷¸¸‡¿
†µ¸ ˆÅú £¸¢©¸ : ¬¸¸Ÿ¸¸›¡¸÷¸¸ ‚¸¾¬¸÷¸ Ÿ¸¸ƒÇŸ½-ǽŢ”’ †µ¸¸½¿ ˆ½Å 2 ¬¸½ 4 Š¸¿ºµ¸¸
‚¨¸¢š¸ : „››¸¡¸›¸ ˆ½Å ¢¥¸‡ 2 - 5 ¨¸«¸Ä ‚¸¾£ ›¸‡ ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ 15 ¨¸«¸Ä
¤¡¸¸]¸ : Ÿ¸¸ƒÇŸ½-ǽŢ”’ †µ¸¸½¿ ¬¸½ ˜¸¸½”õ¸ ˆÅŸ¸, ]¸¸½ †µ¸ ˆÅú Ÿ¸¸°¸¸ ‚¸¾£ ‚¨¸¢š¸
œ¸£ ¢›¸ž¸Ä£ ˆÅ£½Š¸¸
¬¸¿¢¨¸÷¸£µ¸ ¢¨¸¢š¸ : Ÿ¸¸ƒÇŸ½-¢¨¸î¸ ¬¸½ ¢ž¸››¸, ‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸™¾¨¸
¨¡¸¢Æ÷¸¡¸¸½¿ ˆÅ¸½ ¢™¡¸¸ ]¸¸÷¸¸ í¾, ŠÏºœ¸¸½¿ ˆÅ¸½ ›¸íì
¬¸¿œ¸¸¢©¨¸ÄˆÅ : ‚¸Ÿ¸÷¸¸¾£ ¬¸½ ¬¸º¬œ¸«’ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ œÏ¥¸½‰¸ „œ¸¥¸¤š¸ ›¸íì í¸½÷¸½
íÿ, ‚÷¸‡¨¸ †µ¸ ‚¢š¸ˆÅ¸¿©¸÷¸À ‚œÏ¢÷¸ž¸»¢÷¸ˆ¼Å÷¸ í¸½÷¸½ íÿ
†¢µ¸¡¸¸½¿ ˆÅú œÏˆ¼Å¢÷¸¿ : Š¸£ú¤¸ ¨¡¸¢Æ÷¸ ¢]¸›¸ˆÅú †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ ˆ½Å ¬¸¸š¸›¸
í¸½÷¸½ íÿ ]¸¾¬¸½ ¢©¸¥œ¸ú, ˆÅ¸£úŠ¸£ ‚¸¾£ ‚›¸¸¾œ¸\¸¸¢£ˆÅ ®¸½°¸ Ÿ¸½¿ ¢›¸¡¸ºÆ÷¸ ¨¡¸¢Æ÷¸,
©¸í£ú ‚¸¾£ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ ™¸½›¸¸½¿ Ÿ¸½¿ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸Ä ˆ½Å ¨¡¸¢Æ÷¸
‚›¡¸ ¢¨¸©¸½«¸÷¸¸‡¿ : ˆÅž¸ú-ˆÅž¸ú †µ¸ \¸ºˆÅ÷¸¸ ˆÅ£›¸½ ˆÅú ®¸Ÿ¸÷¸¸ ¤¸[õ¸›¸½ ˆ½Å ¢¥¸‡
„÷œ¸¸™ˆÅ †µ¸ ¢™¡¸½ ]¸¸÷¸½ íÿ A
Key features of Housing Microfinance
Amount of Loan : Generally 2 to 4 times larger than
average micro-credit loans
Term : 2 - 5 years for improvement and up to 15 years
for fresh construction.
Interest : Slightly lower than the micro-credit loans,
depending on the quantum & tenure of the loan.
Delivery Method : Unlike microfinance, HMF is always
given to individuals and not groups
Collateral : Clear titles are generally not available,
hence loan is mostly unsecured. Other forms of security
like group guarantees, savings may be made
compulsory. Wherever title deeds are available, they
are mortgaged.
Nature of borrowers : Poor people with means of
repayment like artisans, craftsmen and people in the
informal sector, low income people in both urban and
rural areas
Other Features : Sometimes a productive loan is also
offered to enhance repayment capacity.

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9.3 ‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ Ÿ¸½¿ £¸.‚¸. ¤¸ÿˆÅ ˆÅú œ¸í¥¸ 9.3 NHB’s Initiatives in Housing
Microfinance
¢œ¸Ž¥¸½ ˆºÅŽ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸,Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ›¸½ ž¸¸£÷¸ ˆ½Å ‚œ¸›¸½ ‡¨¸¿ ¤¸¸à¸ 踸½÷¸¸½¿ ¬¸½
Over the last few years, the micro finance sector has
¤¸íº÷¸ ‚¢š¸ˆÅ ¢¨¸¬÷¸¸£ ¢ˆÅ¡¸¸ í¾A Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸ ƒ¬¸ ‚¸¾œ¸\¸¸¢£ˆÅ ¢¨¸î¸ú¡¸ emerged as the largest congregation of microfinance
œÏµ¸¸¥¸ú Ÿ¸½¿ ¢›¸š¸Ä›¸¸½¿, ¢¨¸©¸½«¸ ³ œ¸ ¬¸½ ¢›¸šÄ¸›¸ Ÿ¸¢í¥¸¸‚¸½¿, ˆÅ¸½ š¸ú£½-š¸ú£½ ©¸¸¢Ÿ¸¥¸ ˆÅ£ leaders from within and outside India. Micro finance
£í½ íÿ ‚¸¾£ „›í½¿ †µ¸ œ¸¸›¸½ ‡¨¸¿ ¢›¸š¸Ä›¸÷¸¸ ¬¸½ ¥¸”õ›¸½ ¡¸¸½Š¡¸ ¤¸›¸¸ £í½ íÿA institutions are slowly bringing the poor, especially poor
women, into the formal financial system and enabling
them to access credit and fight poverty.
£¸.‚¸.¤¸ÿˆÅ ‚œ¸›¸ú ‚¸¨¸¸¬¸ú¡¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¢¨¸¿”¸½ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ Š¸£ú¤¸¸½¿ ˆ½Å ¢¥¸‡ ]¸¸½
¬¨¸ ¬¸í¸¡¸÷¸¸ ŠÏºœ¸¸½¿ ¬¸½ ¬¸Ÿ¤¸Ö íÿ, ‡ˆÅ ¬¸º¬˜¸¸¢œ¸÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅ¸¡¸ÄÇÅŸ¸ ÷¸¾¡¸¸£ ˆÅ£ NHB’s focus through its Housing Micro Finance (HMF)
£í¸ í¾A £¸.‚¸. ¤¸ÿˆÅ ™½©¸ ˆ½Å ¢¨¸¢ž¸››¸ ž¸¸Š¸¸½¿ Ÿ¸½¿ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¢¨¸î¸ú¡¸ window is to develop sustainable housing finance
programmes for the poor who are attached to the Self
¬¸í¸¡¸÷¸¸ ¨¸ ‚›¡¸ ¬¸í¸¡¸÷¸¸ „œ¸¥¸¤š¸ ˆÅ£¸›¸½ Ÿ¸½¿ ‚¸¨¸¸¬¸ú¡¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ Ÿ¸½¿ œ¸í¥¸ Help Groups (SHGs). NHB has been in the forefront of
ˆÅ£ˆ½Å ‚ŠÏµ¸ú £í¸ í¾A ‚ž¸ú ÷¸ˆÅ ‚¢š¸ˆÅ¸¿©¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½/¿ Š¸¾£ ¬¸£ˆÅ¸£ú HMF initiatives by extending financial and other
¬¸¿Š¸“›¸¸½¿ ›¸½ ‚¸¨¸¸¬¸ ®¸½°¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ í¸½›¸½ ˆÅ¸ ¬¸¸í¬¸ ›¸íì ¢ˆÅ¡¸¸ í¾ Æ¡¸¸½¢¿ ˆÅ ƒ¬¸Ÿ¸½¿ ¤¸”õú assistance to MFIs in various parts of the country. As of
now most of the MFIs/NGOs have not ventured into
£¸¢©¸ ˆÅ¸ ¥¸½›¸™½›¸ ˆÅ£›¸¸ í¸½÷¸¸ í¾ ‚¸¾£ ƒ›¸ ‡]¸½¢¿ ¬¸¡¸¸¿½ Ÿ¸½¿ ™ú‹¸ÄˆÅ¸¥¸ú›¸ †µ¸¸½¿ œ¸£ ˆÅ¸¡¸Ä
housing as the amounts involved are larger and the
ˆÅ£›¸½ ˆÅú ¬¸º¢¨¸š¸¸ ›¸íì í¸½÷¸ú í¾A £¸.‚¸. ¤¸ÿˆÅ ›¸½ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½/¿ Š¸¾£ ¬¸£ˆÅ¸£ú agencies are not equipped to deal with long term debts.
¬¸¿Š¸“›¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸ Ÿ¸½¿ ©¸¸¢Ÿ¸¥¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‚›¸½ˆÅ ˆÅ™Ÿ¸ „“¸‡ íÿ ]¸¾¬¸½ „›í½¿ NHB has taken a series of initiatives to engage the
™ú‹¸ÄˆÅ¸¥¸ú›¸ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ ™ú ]¸¸÷¸ú í¾ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ ÷¸ˆÅ›¸úˆÅú MFIs/NGOs in housing by providing long term financial
support and technical assistance and training in housing
¬¸í¸¡¸÷¸¸ ‡¨¸¿ œÏ¢©¸®¸µ¸ ¢™¡¸¸ ]¸¸÷¸¸ í¾A finance.

£¸.‚¸. ¤¸ÿˆÅ ›¸½ ‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ˆ½Å ¢¥¸‡ ‡ˆÅ œÏž¸¸¨¸ˆÅ¸£ú ¢¤¸\¸¸¾¢¥¸¡¸¸½¿ ˆ½Å ³œ¸ NHB recognise the significance of the MFI/NGOs as
Ÿ¸½¿ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿/Š¸¾£ ¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ ˆ½Å Ÿ¸í÷¨¸ ˆÅ¸½ ¬¸Ÿ¸^¸¸ í¾ ]¸¸½ effective intermediaries for HMF, to reach out to the low
income groups in both rural and urban areas. MFIs can
©¸í£ú ‚¸¾£ ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½ô ÷¸ˆÅ œ¸í¿º\¸ ¬¸ˆÅ÷¸½ íÿ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ help sustainable housing programme for the low income
¬¸¿¬˜¸¸›¸ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½ô ˆ½Å ¢¥¸‡ ¢’ˆÅ¸… ‚¸¨¸¸¬¸ ˆÅ¸¡¸ÄÇÅŸ¸ ˆ½Å ˆÅ¸¡¸¸Ä›¨¸¡¸›¸ Ÿ¸½¿ groups, as they establish credit history of such groups
¬¸í¸¡¸÷¸¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ Æ¡¸¸½¿¢ˆÅ „›í½¿ „›¸ ŠÏºœ¸¸½¿ ˆ½Å ׸£¸ †µ¸ ¥¸½›¸½ ‚¸¾£ \¸ºˆÅ÷¸¸ through consumptive loan cycles and savings. Under
NHB’s HMF programme, the beneficiaries include
ˆÅ£›¸½ ˆ½Å ¤¸¸£½ Ÿ¸½¿ œ¸»¨¸Ä ]¸¸›¸ˆÅ¸£ú í¸½÷¸ú í¾A £¸.‚¸.¤¸ÿˆÅ ˆ½Å ‚¸¨¸¸¬¸ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸
farmers, housemaids, petty traders, artisans, dairy
ˆÅ¸¡¸ÄÇÅŸ¸ ˆ½Å ÷¸í÷¸, ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ Ÿ¸½¿ ¢ˆÅ¬¸¸›¸, ›¸¸¾ˆÅ£¸¢›¸¡¸¸¿, Ž¸½’½ ¨¡¸¸œ¸¸£ú, workers and other low income segments. More than 90
™¬÷¸ˆÅ¸£, ”½¡¸£ú ˆÅ¸Ÿ¸Š¸¸£ ‚¸¾£ ‚›¡¸ ¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½ô ˆ½Å ¥¸¸½Š¸ ©¸¸¢Ÿ¸¥¸ í¸½÷¸½ per cent of the beneficiaries are women. Approximate
íÿA ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ Ÿ¸½¿ 90 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ Ÿ¸¢í¥¸¸‡¿ íÿA ¥¸¸ž¸¸¢˜¸Ä¡¸¸½¿ ˆÅú income level of the beneficiaries range between Rs
3000/- to Rs. 7000/- per month.
¥¸Š¸ž¸Š¸ ‚¸¡¸ ¬÷¸£ 3000/- ². ¬¸½ 7000/- ². œÏ¢÷¸ Ÿ¸¸í ˆ½Å ¤¸ú\¸ í¾A
The housing loans are provided by the MFIs to Self Help
Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ ‚¸¨¸¸¬¸ †µ¸ ¬¨¸ ¬¸í¸¡¸÷¸¸ ŠÏºœ¸¸½¿ ¡¸¸ ¬¸¿¡¸ºÆ÷¸ ™½¡¸÷¸¸ Group (SHG) or Joint Liability Group (JLG) member
ŠÏºœ¸ ˆ½Å ¬¸™¬¡¸¸½¿ ]¸¸½ Ÿ¸¸ƒÇŸ½ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ¬¸½ ¬¸Ÿ¤¸Ö í¸½÷¸½ íÿ, ˆÅ¸½ ›¸‡ ¢›¸Ÿ¸¸Äµ¸ ¡¸¸ attached to the MFIs either for fresh construction or for
renovation/repair of their existing houses. Work sheds
‚œ¸›¸½ Ÿ¸¸¾]¸»™¸ Ÿ¸ˆÅ¸›¸ ˆ½Å ›¸¨¸úˆÅ£µ¸/Ÿ¸£ŸŸ¸÷¸ ˆ½Å ¢¥¸‡ ¢™¡¸¸ ]¸¸÷¸¸ í¾A ¬¸ž¸ú form an integral part of all housing projects with
‚¸¨¸¸¬¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ Ÿ¸½¿ ˆÅ¸¡¸Ä ¬˜¸¥¸ ˆÅú ¨¡¸¨¸¬˜¸¸ ]¸º”õú í¸½÷¸ú í¾ ]¸í¸¿ œ¸¸›¸ú necessary water and sanitation facilities. Incremental
‚¸¾£ ¬¸ûŸƒÄ ˆÅú ¬¸º¢¨¸š¸¸‡¿ „œ¸¥¸¤š¸ í¸½÷¸ú íÿA ˆÅ¸¡¸ÄÇÅŸ¸ ˆÅú ¨¸í›¸ú¡¸÷¸¸ ‚¸¾£ housing (repair/renovation) with loan maximum
¬˜¸¸¢¡¸÷¨¸ ˆ½Å œ¸¢£œÏ½®¡¸ Ÿ¸½¿ Ÿ¸£ŸŸ¸÷¸/›¸¨¸úˆÅ£µ¸ ˆ½Å ¢¥¸‡ ¢Ÿ¸¥¸›¸½ ¨¸¸¥¸¸ ‚¢š¸ˆÅ÷¸Ÿ¸ component of Rs. 50,000/- assumes much significance
in the context of affordability and sustainability of the
†µ¸ 50,000/- ². ¤¸íº÷¸ ¥¸¸½ˆÅ¢œÏ¡¸ í¾A ›¸¡¸½ ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ ‚¢š¸ˆÅ÷¸Ÿ¸ 1.50 programme. For new constructions the loan amount
¥¸¸‰¸ ²œ¸¡¸½ ÷¸ˆÅ ˆÅ¸ †µ¸ ¢Ÿ¸¥¸÷¸¸ í¾A ¡¸½ †µ¸ ‚¢š¸ˆÅ÷¸Ÿ¸ 10 ¨¸«¸¸½ô Ÿ¸½¿ \¸ºˆÅ÷¸¸ ranges upto Rs.1.50 lakh. The loans are repayable
ˆÅ£›¸¸ í¸½÷¸¸ í¾ ‚¸¾£ 50,000/- ². ÷¸ˆÅ ˆ½Å †µ¸¸½¿ œ¸£ ¬¸¿œ¸¸¢©¨¸ÄˆÅ ›¸íì Ÿ¸¸¿Š¸¸ within a period of maximum 10 years and collaterals are
not insisted upon loans upto Rs. 50,000. The projects
]¸¸÷¸¸ í¾A ¡¸½ œ¸¢£¡¸¸½]¸›¸¸‡¿ ‚›¸½ˆÅ £¸]¡¸¸½¿ ]¸¾¬¸½ ‚¸¿šÏ œÏ™½©¸, ˆÅ›¸¸Ä’ˆÅ, are scattered across various States like, Andhra
÷¸¢Ÿ¸¥¸›¸¸”º ‚¸¾£ Ÿ¸í¸£¸«’ï Ÿ¸½¿ \¸¥¸ £íú íÿ A Pradesh, Karnataka, Tamil Nadu and Maharashtra.

136
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
‚š¡¸¸¡¸-10 À Ÿ¸º‰¡¸ ¢¨¸«¸¡¸ ‡¨¸¿ ž¸¸¨¸ú ´¢«’ˆÅ¸½µ¸
Chapter 10: Key Issues and Future Outlook
10.1 ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ œÏµ¸¸¥¸ú ˆÅ¸ ‡ˆÅ Ÿ¸»¥¡¸¸¿ˆÅ›¸
ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸, ‚›¸¸¾œ¸\¸¸¢£ˆÅ 踸½÷¸¸½¿ ¬¸½ ¨¡¸¸œ¸ˆÅ ³œ¸ ¬¸½ œÏ¤¸¢¥¸÷¸
‡ˆÅ ‡½¬¸½ ®¸½°¸ ˆ½Å ³œ¸ Ÿ¸½¿ ¤¸íº÷¸ ‚¸Š¸½ ‚¸ Š¸¡¸¸ í¾ ]¸¸½ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å ‚¸¾œ¸\¸¸¢£ˆÅ
œÏ™î¸ 踸½÷¸¸½¿ ˆ½Å ¤¸ú\¸ ‡ˆÅ Š¸í›¸ œÏ¢÷¸¬œ¸š¸¸Ä÷Ÿ¸ˆÅ ¡¸ºÖ ˆÅ¸ ¬¸¸®¸ú í¾ ‚›¸ºˆ»Å¥¸
‚¸¢˜¸ÄˆÅ ¢¬˜¸¢÷¸¡¸¸½¿, ¬¸£ˆÅ¸£ú œÏ¸½÷¬¸¸í›¸¸½¿ ‚¸¾£ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ›¸ú¢÷¸¡¸¸½¿ ›¸½ ¢¨¸¢ž¸››¸
œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¨¸š¸ÄŸ¸¸›¸ ³œ¸ ¬¸½ ‚œ¸›¸ú Š¸¼í ¢¨¸î¸ ¬¸»\¸ú œ¸£
¬¸¿ˆ½Å¢›Í÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ œÏ¸½÷¬¸¸¢í÷¸ ¢ˆÅ¡¸¸ í¾A ƒ¬¸ ¨¸«¿¸Ä Ÿ¸½¿, ž¸¸£÷¸ú¡¸ ‚¸¨¸¸¬¸
¢¨¸î¸ œÏµ¸¸¥¸ú ›¸½ ¨¸¾¢©¨¸ˆÅ ‚¸¢˜¸ÄˆÅ ¬¸¿ˆÅ’ ˆ½Å ¤¸¸™ ˆÅ¸ š¸ÆˆÅ¸ Ÿ¸í¬¸»¬¸ ¢ˆÅ¡¸¸ ˜¸¸
‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅú ‚¸œ¸»¢÷¸Ä ¤¸¸{¸¸£¸½¿ ¬¸½ ¬¸¿ˆºÅ¢\¸÷¸ í¸½÷¸ú \¸¥¸¢›¸¢š¸ „œ¸¡¸¸½Æ÷¸¸ ‚¸¾£
¨¡¸¸œ¸¸£ ˆÅú ›¸ˆÅ¸£¸÷Ÿ¸ˆÅ ž¸¸¨¸›¸¸‚¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ½Å œÏ™¸÷¸¸‚¸½¿ ˆÅú ‚¸½£ ¬¸½
‚¢›¸\Ž¸ ˆ½Å ˆÅ¸£µ¸ ²ˆÅ Š¸ƒÄ ˜¸úA
ž¸¸£÷¸ Ÿ¸½¿ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸ œ¸½©¸ ¢ˆÅ‡ Š¸‡ ‚¸¨¸¸¬¸ †µ¸
„÷œ¸¸™ (£¸¢©¸) ¡¸¸ ÷¸¸½ ¤¡¸¸]¸ ˆÅú ¢¬˜¸£ ™£ œ¸£ ‚˜¸¨¸¸ ¤¡¸¸]¸ ˆÅú ‚¢¬˜¸£ ™£
œ¸£ ‚˜¸¨¸¸ ™¸½›¸¸½¿ ˆÅú ¬¸¿ˆÅ’ ™£ œ¸£ ‚¸¨¸¸¬¸ †µ¸ „÷œ¸¸™¸½¿ ˆ½Å œÏˆÅ¸£ ‚¸¾£ ‚¨¸¢š¸
ˆ½Å ‚›¸º¬¸¸£ í¾A ¢¨¸\¸¸£¸š¸ú›¸ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ׸£¸
œÏž¸¸¢£÷¸ ¤¡¸¸]¸ ˆÅú ™£½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ 8 œÏ¢÷¸©¸÷¸ ¬¸½ ¥¸½ˆÅ£
16 œÏ¢÷¸©¸÷¸ ÷¸ˆÅ ‚¸¾£ ¤¸ÿˆÅ¸½¿ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ 9 ¬¸½ ¥¸½ˆÅ£ 14 œÏ¢÷¸©¸÷¸ ÷¸ˆÅ í¾A
‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£ ¤¡¸¸]¸ ˆÅú ™£½¿ ¢œ¸Ž¥¸½ ˆºÅŽ½ˆÅ ¨¸«¸¸½¿Ä Ÿ¸½¿ ¬¸¸˜¸ÄˆÅ ³œ¸ ¬¸½ ¤¸[õ Š¸ƒÄ
í¾A ¢œ¸Ž¥¸½ ˆºÅŽ½ˆÅ ¨¸«¸¸½¿Ä ÷¸ˆÅ ¥¸Š¸ž¸Š¸ 5-7.5 œÏ¢÷¸©¸÷¸ ˆÅú ¢í\¸¢ˆÅ\¸¸í’ ¬¸½
¤¡¸¸]¸ ™£½¿ ]¸»›¸, 2008 ˆ½Å ™¸¾£¸›¸ 12.5 œÏ¢÷¸©¸÷¸ ˆÅ¸ ‚¿ˆÅ œ¸¸£ ˆÅ£ Š¸ƒÄ íÿ A
¤¡¸¸]¸ ˆÅú „¿€\¸ú ™£½¿ \¸¥¸¢›¸¢š¸ ˆ½Å ¬¸¿ˆºÅ\¸›¸ ‚¸¾£ Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ ˆÅ¸ ‚¸¾£
‚˜¸Ä¨¡¸¨¸¬˜¸¸ Ÿ¸½¿ œÏ\¸¢¥¸÷¸ ¬œ¸€ú¢÷¸ˆÅ¸£ˆÅ ™¤¸¸¨¸ ˆÅ¸ ¬¸¿ˆ½Å÷¸ ™½÷¸ú íÿ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸
¬œ¸€ú¢÷¸ ˆÅú „¸½î¸£ ¤¸[õ÷¸ú ™£¸½¿ ›¸½ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ‚¸¨¸¸¬¸ †µ¸¸½¿ œ¸£
‚¢š¸ˆÅ œÏž¸¸¢£÷¸ ˆÅ£›¸½ œ¸£ ¤¸¸š¡¸ ¢ˆÅ¡¸¸ ˜¸¸ ‚¸¾£ Ÿ¸ºÍ¸¬œ¸€ú¢÷¸ˆÅ¸£ˆÅ œÏ¨¸¼¢î¸¡¸¸¿½
ˆÅ¸½ ¢›¸¡¸¿¢°¸÷¸ £‰¸›¸½ ˆ½Å ¢¥¸‡ ›¸ˆÅ™ú ‚¸£¢®¸÷¸ ‚›¸ºœ¸¸÷¸ ¤¸[õ¸›¸½ ˆÅ¸ ž¸¸£÷¸ú¡¸
¢£{¸¨¸Ä ¤¸ÿˆÅ ˆ½Å ¢¨¸¢›¸©\¸¡¸ ›¸½ ž¸ú ¤¡¸¸]¸ ˆÅú ™£½¿ ¤¸[õ›¸½ Ÿ¸½¿ ‚¿©¸™¸›¸ ¢ˆÅ¡¸¸ ˜¸¸A
‚¸¨¸¸¬¸ †µ¸¸½¿ ˆÅú ‚÷¡¸¢š¸ˆÅ ¥¸¸Š¸÷¸ ›¸½ ¬¸¿œ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸¸½¿ ˆÅú ‚÷¡¸¢š¸ˆÅ ¨¸¼¢Ö Ÿ¸½¿
¡¸¸½Š¸™¸›¸ ¢ˆÅ¡¸¸ ˜¸¸A
¤¡¸¸]¸ ˆÅú ‚÷¡¸¢š¸ˆÅ ™£¸½¿ ˆ½Å œ¸¢£µ¸¸Ÿ¸¬¨¸³œ¸, Š¸¼í †µ¸ ˆÅú ¤¸[õ¸½÷¸£ú œ¸£¨¸÷¸úÄ
‚¸š¸½ ¨¸«¸Ä ˆ½Å ™¸¾£¸›¸ ˆÅ¢÷¸œ¸¡¸ í™ ÷¸ˆÅ ˆÅŸ¸ í¸½ Š¸ƒÄ ˜¸ú A
10.2 ‚¸œ¸™¸ œÏ¤¸¿š¸›¸
œÏ¸ˆ¼Å¢÷¸ˆÅ ‚¸œ¸™¸ ¬¸¿¬¸¸£ ˆ½Å ¢ˆÅ¬¸ú ž¸ú ž¸¸Š¸ Ÿ¸½¿ ž¸¸£ú ¢¨¸›¸¸©¸ ‚¸¾£ ¢{¸¿™¢Š¸¡¸¸½¿ ˆÅ¸½
›¸«’ ˆÅ£ ¬¸ˆÅ÷¸ú í¾ œÏ¸ˆ¼Å¢÷¸ˆÅ ‚¸œ¸™¸‚¸½¿ ˆÅ¸ ›¸¨¨¸½ œÏ¢÷¸©¸÷¸ ‚¸¾£ ¬¸Ÿ¸ŠÏ ‚¸œ¸™¸
¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¢¨¸©¨¸¨¡¸¸œ¸ú í¸¢›¸ ˆÅ¸ œ¸\¸¸›¸¨¸½ œÏ¢÷¸©¸÷¸ ¢¨¸ˆÅ¸¬¸©¸ú¥¸ ™½©¸¸½¿ Ÿ¸½¿ í¸½÷¸¸
137
Report on Trend and Progress of Housing in India, 2008
10.1 An Assessment of the Indian
Housing Finance System
The Indian Housing Finance Sector has come a long
way; from being a sector largely dominated by informal
sources to a sector which has witnessed intense
competition among formal sources of housing finance.
The favourable macro-economic conditions,
government initiatives and regulatory policies have
encouraged various PLIs to increasingly focus on their
home finance portfolios. During the year, the Indian
Housing Finance System had felt the aftershocks of the
global financial crisis. The supply of housing finance was
strained due to shrinking liquidity in the markets,
negative consumer and business sentiments and risk
aversion on the part of the providers of housing finance.
The housing loan products offered by PLIs in India are
either on a fixed rate of interest or floating rate of
interest or a hybrid of both depending upon the tenure
and type of housing loan products. The interest rates
charged by PLIs during the year under consideration
range from 8 to 16 per cent with respect to Housing
Finance Companies (HFCs) and 9 to 14 per cent with
respect to Public Sector Banks. The interest rates on
housing loans have gone up significantly during the past
few years. From 5 - 7.5 per cent range till a few years
back, interest rates have crossed the 12.5 per cent mark
during June 2008.
The high interest rates give an indication of the
shrinking liquidity and inflationary pressures prevailing
in the economy. Spiralling inflation during the year had
forced lending institutions to increase rates on housing
loans. The higher costs of housing loans have
contributed to the exorbitant increase in property prices.
As a result of high interest rates, home loan growth has
decelerated to a certain extent during the latter half of
the year.
10.2 Disaster Management
Natural disasters can cause massive destruction and
loss of lives in any part of the world and they occur
without any warning. Ninety per cent of the natural
disasters and ninety five percent of the total disaster
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

í¾, ¢]¸¬¸Ÿ¸½¿ ž¸¸£÷¸ ˆÅ¸ ¢×÷¸ú¡¸ ¢¨¸©¸¸¥¸÷¸Ÿ¸ ž¸¸Š¸ í¾ ¢¨¸¢¨¸š¸ ž¸¸¾Š¸¸½¢¥¸ˆÅ ¬¸¿£\¸›¸¸ related loss worldwide occur in developing
‚¸¾£ ¢¨¸¬÷¸¼÷¸ Ÿ¸¾™¸›¸¸½¿ ›¸½ ž¸¸£÷¸ ˆÅ¸½ œÏ¸ˆ¼Å¢÷¸ˆÅ ¢¨¸œ¸¢î¸ ‚¸¾£ ‚¸œ¸™¸ ˆ½Å ˆÅ¸£µ¸ countries in which India has the second largest
‚÷¡¸¢š¸ˆÅ ¬¸¿ž¸¸¢¨¸÷¸ ™½©¸ ¤¸›¸¸ ¢™¡¸¸ í¾ ÷¸½{¸ú ¬¸½ ¤¸[õ÷¸ú ‚¸¤¸¸™ú ›¸½ ™½©¸¨¸¸¢¬¸¡¸¸½¿ share. The diverse geographic structure and huge
ˆÅ¸½ ¤¸¸[õŠÏ¬÷¸ Ÿ¸¾™¸›¸¸½¿, ¬¸»‰¸¸ ¬¸¿ž¸¸¢¨¸÷¸ ®¸½°¸¸½¿, ž¸»ˆ¿Åœ¸ú¡¸ ®¸½°¸¸½¿ ]¸¾¬¸½ ¬˜¸¸›¸¸½¿ œ¸£ landmass make India highly prone to natural
calamities and disasters. A steadily growing
¤¸¬¸›¸½ ˆ½Å ¢¥¸‡ ¤¸¸š¡¸ ˆÅ£ ¢™¡¸¸ í¾A
population has compelled the inhabitants of the
country to settle in risky areas such as flood plains,
ž¸¸£÷¸ ¬¸£ˆÅ¸£ ˆ½Å Š¸¼í Ÿ¸¿°¸¸¥¸¡¸ ˆ½Å ‚š¸ú›¸ £¸«’ïú¡¸ ‚¸œ¸™¸ œÏ¤¸¿š¸›¸ œÏž¸¸Š¸ ˆ½Å drought-prone areas, cyclone-prone areas, seismic
‚›¸ºŸ¸¸›¸ ˆ½Å ‚›¸º¬¸¸£, š¸£÷¸ú ˆÅ¸ ¥¸Š¸ž¸Š¸ 60 œÏ¢÷¸©¸÷¸ ¬¸½ ‚¢š¸ˆÅ ž¸» ž¸¸Š¸ zones etc.

¢¨¸¢ž¸››¸ Š¸¢÷¸ ˆ½Å ˆÅ¸£µ¸ ž¸»ˆ¿Åœ¸ ¬¸¿ž¸¸¢¨¸÷¸ í¾, 40 ¢Ÿ¸¢¥¸¡¸›¸ í¾Æ’½¡¸¬¸Ä ¬¸½ ‚¢š¸ˆÅ As per the estimate of the National Disaster
Management Division under the Ministry of Home
®¸½°¸ ¤¸¸[õ ¬¸¿ž¸¸¢¨¸÷¸ í¾, ˆºÅ¥¸ ®¸½°¸ ˆÅ¸ ¥¸Š¸ž¸Š¸ 8 œÏ¢÷¸©¸÷¸ \¸ÇŨ¸¸÷¸ ¬¸¿ž¸¸¢¨¸÷¸
Affairs, Government of India, about 60 per cent of
‚¸¾£ 68 œÏ¢÷¸©¸÷¸ ®¸½°¸ ¬¸»‰¸¸ ¬¸ºœÏž¸¸¨¡¸ ˆÅí¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ 1990-2000 ˆ½Å the landmass is prone to earthquakes of various
™©¸ˆÅ Ÿ¸½¿ ‚¸¾¬¸÷¸›¸ ¥¸Š¸ž¸Š¸ 4344 ¥¸¸½Š¸¸½¿ ˆÅú ]¸¸›¸½¿ Š¸ƒÄ ˜¸ì ‚¸¾£ ¥¸Š¸ž¸Š¸ 30 intensities; over 40 million hectares is prone to
floods; about 8 per cent of the total area is prone to
¢Ÿ¸¢¥¸¡¸›¸A
cyclones and 68 per cent of the area is susceptible
to drought. In the decade 1990-2000, an average
¥¸¸½Š¸ œÏ¢÷¸ ¨¸«¸Ä ‚¸œ¸™¸ ¬¸½ œÏž¸¸¢¨¸÷¸ í¸½÷¸½ íÿ ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, ‚¸™Ÿ¸ú ׸£¸ of about 4344 people lost their lives and about 30
œ¸¾™¸ ¢ˆÅ‡ Š¸‡ ‰¸÷¸£¸½¿ ˆ½Å ˆÅ¸£µ¸ Ÿ¸¸›¸¨¸, ‚¸¢˜¸ÄˆÅ, ¬¸¸Ÿ¸¸¢]¸ˆÅ, ‚›¡¸ í¸¢›¸¡¸¸½¿ ˆ½Å million people were affected by disasters every
year. Also, one million houses are damaged
¬¸¸˜¸ œÏ¢÷¸ ¨¸«¸Ä 1 ¥¸¸‰¸ Ÿ¸ˆÅ¸›¸ ›¸«’ í¸½ ]¸¸÷¸½ íÿ ž¸¸£÷¸ ˆ½Å 28 £¸]¡¸¸½¿ Ÿ¸½¿ ¬¸½ 22
annually along with human, economic, social and
£¸]¡¸¸½¿ ˆÅ¸½ ‰¸÷¸£›¸¸ˆÅ £¸]¡¸¸½¿ ˆÅú ª½µ¸ú Ÿ¸½¿ £‰¸¸ Š¸¡¸¸ í¾A other losses due to the different types of manmade
hazards. Out of the 28 states of India, 22 states are
10.2.1 ¢¨¸¢ž¸››¸ ‚¢ž¸ˆÅ£µ¸¸½¿ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ categorized as multi hazardous states.

10.2.1 Role of different agencies

¤¸¸[õ ˆ½Å ¬¸¿‹¸¸÷¸ ˆÅ¸½ ˆÅŸ¸ ˆÅ£›¸½ ˆ½Å „œ¸¸¡¸ 1950 ¬¸½ ©¸º³ ¢ˆÅ‡ Š¸‡ íÿA ¤¸¸[õ
Measures to mitigate the impact of floods have
¬¸¿ž¸¸¢¨¸÷¸ 40 ¢Ÿ¸¢¥¸¡¸›¸ í¾Æ’½¡¸£ ˆ½Å ˆºÅ¥¸ ®¸½°¸ Ÿ¸½¿ ¬¸½ ¥¸Š¸ž¸Š¸ 15 ¢Ÿ¸¢¥¸¡¸›¸
been initiated since 1950. As against the total area
í¾Æ’½¡¸£ ®¸½°¸ ˆÅ¸½ ¤¸¸¿š¸ ¤¸›¸¸ˆÅ£ ¤¸¸[õ ¬¸½ ¤¸\¸¸ ¢¥¸¡¸¸ Š¸¡¸¸ í¾A ¤¸íº÷¸ ¬¸½ ¤¸¸¿š¸ ‚¸¾£ of 40 million hectares prone to floods, area of about
¤¸£¸]¸ ¬¸Ÿ¸¡¸ ¬¸½ ¤¸›¸¸ ¢¥¸‡ Š¸‡ íÿ ‚¸¾£ ¤¸íº÷¸ ¬¸½ ¤¸¸[õ £¸í÷¸ „œ¸¸¡¸¸½¿ ˆ½Å 15 million hectares has been protected by
construction of embankments. A number of dams
¢ÇÅ¡¸¸›¨¸¡¸›¸ Ÿ¸½¿ £¸]¡¸ ¬¸£ˆÅ¸£¸½¿ ˆÅú ¬¸í¸¡¸÷¸¸ ˆÅú Š¸ƒÄ í¾A
and barrages have been constructed over time and
the State Governments have been assisted in the
ž¸»ˆ¿Åœ¸ ˆ½Å ¬¸¿‹¸¸÷¸ ˆÅ¸ ¬¸¸Ÿ¸›¸¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ž¸»ˆ¿Åœ¸ ˆÅ¸ œÏž¸¸¨¸ ˆÅ£›¸½ í½÷¸º ‡ˆÅ implementation of various flood relief measures.
£¸«’ïú¡¸ ˆÅ¸½£-ŠÏºœ¸ ¬¸£ˆÅ¸£ ׸£¸ Š¸¢“÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸ ¢]¸¬¸Ÿ¸½¿ ž¸»ˆ¿Åœ¸
To counter the impact of earthquakes, a National
ƒ¿]¸ú¢›¸¡¸£ú ‚¸¾£ œÏ©¸¸¬¸›¸ Ÿ¸½¿ ¢¨¸©¸½«¸±¸ ©¸¸¢Ÿ¸¥¸ ¢ˆÅ‡ Š¸‡ ˜¸½A ƒ¬¸ ˆÅ¸½£-ŠÏºœ¸ ˆÅ¸½ Core Group for Earthquake Mitigation was
ž¸»ˆ¿Åœ¸¸½¿ ˆÅ¸ ¬¸¿‹¸¸÷¸ ˆÅŸ¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ‡ˆÅ £µ¸›¸ú¢÷¸ ‡¨¸¿ ˆÅ¸¡¸Ä ¡¸¸½]¸›¸¸ ÷¸¾¡¸¸£ constituted by the government comprising experts
in earthquake engineering and administration. The
ˆÅ£›¸½, ž¸»ˆ¿Åœ¸ ˆÅŸ¸ ˆÅ£›¸½ ˆ½Å ¢¨¸¢ž¸››¸ œ¸í¥¸º‚¸½¿ œ¸£ £¸]¡¸¸½¿ ˆÅ¸½ œ¸£¸Ÿ¸©¸Ä ‚¸¾£
Core Group has been assigned with the
Ÿ¸¸Š¸Ä™©¸Ä›¸, ž¸»ˆ¿Åœ¸ ¢¨¸£¸½š¸ú ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¢¥¸‡ œ¸º¢¬÷¸ˆÅ¸/œ¸\¸½Ä ‚¸¢™ ÷¸¾¡¸¸£ responsibility of drawing up a strategy and plan of
ˆÅ£›¸½/ˆÅ¸¡¸ÄÇÅŸ¸ ‚¸¡¸¸½¢]¸÷¸ ˆÅ£›¸½, £¸]¡¸¸½¿ ˆÅú ž¸¨¸›¸ ¢›¸Ÿ¸¸Äµ¸ ¬¸¿¤¸¿š¸ú „œ¸- action for mitigating the impact of earthquakes;
providing advice and guidance to the States on
¢¨¸¢š¸¡¸¸½¿ Ÿ¸½¿ ¬¸Ÿ¸º¢\¸÷¸ ž¸¸£÷¸ú¡¸ Ÿ¸¸›¸ˆÅ ¤¡¸»£¸½ ˆÅ¸½” ‚¿Š¸úˆÅ¸£ ˆÅ£›¸½/]¸¸½”õ›¸½ ˆ½Å various aspects of earthquake mitigation;

138
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¢¥¸‡ ž¸»ˆ¿Åœ¸ ˆÅú ´¢«’ ¬¸½ ‚¬¸º£¢®¸÷¸ ®¸½°¸¸½¿ Ÿ¸½¿ „›¸ˆÅú ¬¸í¸¡¸÷¸¸ í½÷¸º œÏµ¸¸¢¥¸¡¸¸¿ developing/organizing the preparation of
handbooks/pamphlets/type designs for earthquake
÷¸¾¡¸¸£ ˆÅ£›¸½, ›¸Š¸£œ¸¸¢¥¸ˆÅ¸ ˆ½Å ƒ¿]¸ú¢›¸¡¸£¸½¿ ˆ½Å œÏ¢©¸®¸µ¸ ˆ½Å ¢¥¸‡ œÏµ¸¸¢¥¸¡¸¸¿
resistant construction; working out systems for assisting
¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½ ‚¸¾£ ž¸¸£÷¸ú¡¸ Ÿ¸¸›¸ˆÅ ¤¡¸»£¸½ ˆÅ¸½” ˆÅú œÏŸ¸º‰¸ ¢¨¸©¸½«¸÷¸¸‚¸½¿ Ÿ¸½¿ the States in the seismically vulnerable zones to
¢›¸]¸ú ®¸½°¸ ˆ½Å ¨¸¸¬÷¸ºˆÅ¸£¸½¿ ‚¸¾£ ƒ¿]¸ú¢›¸¡¸£¸½¿ ˆ½Å ˆÅ¸Ÿ¸ ˆÅ£›¸½ ‚¸¾£ „œ¸-¢¨¸¢š¸¡¸¸¿ adopt/integrate appropriate Bureau of Indian Standards
codes in their building byelaws; evolving systems for
¬¸¿©¸¸½¢š¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ž¸ú ž¸»ˆ¿Åœ¸ £¸½š¸ú ¢›¸Ÿ¸¸Äµ¸ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ „›¸ˆ½Å ±¸¸›¸ ˆÅú
training of municipal engineers as also practicing
]¸¸¿\¸ ˆ½Å ¢¥¸‡ ¨¸¸¬÷¸ºˆÅ¸£¸½¿Àƒ¿]¸ú¢›¸¡¸£¸½¿ ˆ½Å œÏŸ¸¸µ¸›¸ ˆÅú œÏµ¸¸¥¸ú ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½, architects and engineers in the private sector in the
£¸]¸¢Ÿ¸¢¬°¸¡¸¸½¿ ˆ½Å œÏ¢©¸®¸µ¸ ˆÅú œÏµ¸¸¥¸ú ÷¸¾¡¸¸£ ˆÅ£›¸½ ‚¸¾£ Š¸í›¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ salient features of Bureau of Indian Standards codes
and the amended byelaws; evolving a system of
]¸¸Š¸³ ˆÅ÷¸¸ ‚¢ž¸¡¸¸›¸ \¸¥¸¸›¸½ ˆÅ¸ „™¸¢¡¸÷¨¸ ¬¸¸ÿœ¸¸ Š¸¡¸¸ í¾A certification of architects/engineers for testing their
knowledge of earthquake resistant construction;
ž¸¨¸›¸ ¢›¸Ÿ¸¸Äµ¸ ¬¸¿¤¸¿š¸ú „œ¸-¢¨¸¢š¸¡¸¸½¿ ˆ½Å œ¸º›¸£ú®¸µ¸ ˆ½Å ¢¥¸‡ ¢¨¸©¸½«¸±¸¸½¿ ˆÅú ‡ˆÅ evolving systems for training of masons and carry out
¬¸¢Ÿ¸¢÷¸ Š¸¢“÷¸ ˆÅú Š¸ƒÄ í¾A £¸]¡¸ ¬¸£ˆÅ¸£¸½¿ ˆÅ¸½ ¨¸÷¸ÄŸ¸¸›¸ „œ¸-¢¨¸¢š¸¡¸½¸½¿ ˆÅ¸½ ˆÅ”õ¸ƒÄ intensive awareness generation campaigns.

¬¸½ ¥¸¸Š¸» ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ˆÅí¸ Š¸¡¸¸ í¾A ž¸»ˆ¿Åœ¸ ‚¥œ¸úˆÅ£µ¸ ˆ½Å ¢¥¸‡ ®¸Ÿ¸÷¸¸ ¢›¸Ÿ¸¸Äµ¸ A Committee of experts has been constituted to review
the building byelaws. The State Governments have been
ˆ½Å ‡ˆÅ £¸«’ïú¡¸ ˆÅ¸¡¸ÄÇÅŸ¸ ˆÅ¸½ ‚¿¢÷¸Ÿ¸ ³œ¸ ¢™¡¸¸ Š¸¡¸¸ í¾, ¢]¸¬¸ˆ½Å ‚›¸º¬¸¸£
advised to ensure rigorous enforcement of existing bye
¬¸¸¨¸Ä]¸¢›¸ˆÅ ‡¨¸¿ ¢›¸]¸ú ®¸½°¸¸½¿ Ÿ¸½¿ 10,000 ƒ¿]¸ú¢›¸¡¸£¸½¿ ˆÅ¸½ œÏ¢©¸®¸µ¸ ¢™¡¸¸ laws. A national programme for capacity building for
]¸¸‡Š¸¸A ŠÏ¸Ÿ¸úµ¸ ¢¨¸ˆÅ¸¬¸ Ÿ¸¿°¸¸¥¸¡¸ ‚¤¸ ¬¸Ÿ¸º¢\¸÷¸ ž¸»ˆ¿Åœ¸/\¸ÇŨ¸¸÷¸£¸½š¸ú earthquake mitigation has been finalized for imparting
training to 10000 engineers in public and private
¢¨¸©¸½«¸±¸¸½¿ ˆÅ¸½ ©¸¸¢Ÿ¸¥¸ ˆÅ£ˆ½Å $¸£ú¤¸¸½¿ ˆ½Å ‚›¸ºˆ»Å¥¸ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸½¿ ˆ½Å
sectors. The Ministry of Rural Development is now under
¢›¸Ÿ¸¸Äµ¸¸˜¸Ä ‚œ¸›¸½ ¢™©¸¸-¢›¸™½Ä©¸¸½¿ ˆÅ¸½ ¬¸¿©¸¸½¢š¸÷¸ ˆÅ£›¸½ ˆÅú œÏ¢ÇÅ¡¸¸ Ÿ¸½¿ í¾A ŠÏ¸Ÿ¸úµ¸ the process of revising their guidelines for construction
‚¸¨¸¸¬¸ú¡¸ ˆ½Å›Í¸½¿ Ÿ¸½¿ ‚¢š¸ˆÅ¸¢£¡¸¸½¿ ˆ½ ¢¥¸‡ œÏ¢©¸®¸µ¸ Š¸¼í Ÿ¸°¸¸¥¸¡¸ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ of pro-poor rural dwelling units by incorporating
appropriate earthquake/cyclone resistant features.
‚¸¡¸¸½¢]¸÷¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ ƒ¬¸ œ¸í¥¸ ¬¸½ Š¸¸¿¨¸/‰¸¿” (¤¥¸¸ÁˆÅ) ¬÷¸£ œ¸£ ž¸»ˆ¿Åœ¸ Training to the functionaries in the rural housing centres
ˆÅú ´¢«’ ¬¸½ ¬¸º£¢®¸÷¸ ¢›¸Ÿ¸¸Äµ¸ ‚¸¾£ ¥¸¸½ˆÅ¢œÏ¡¸ ¤¸›¸¸›¸½ ˆ½Å ¢¥¸‡ œ¸¡¸¸Äœ÷¸ ‚¸©¸¸ ˆÅú will be organized through the Ministry of Home Affairs.
This initiative is expected to go a long way for the
]¸¸ ¬¸ˆÅ÷¸ú í¾A
construction and popularization of seismically safe
construction at village/block level.
\¸ÇŨ¸¸÷¸ ˆÅú ¢›¸Š¸£¸›¸ú ‚¸¾£ ‚¥œ¸úˆÅ£µ¸ œ¸£ ‡ˆÅ £¸«’ïú¡¸ ˆÅ¸½£-ŠÏºœ¸ Š¸¢“÷¸
¢ˆÅ¡¸¸ Š¸¡¸¸ í¾ ‚¸¾£ \¸ÇŨ¸¸÷¸¸½¿ ˆ½Å ¢¥¸‡ \¸½÷¸¸¨¸›¸úœ¸»µ¸ÄÅ ¥¸½‰¸ ˆ½Å›Í ‚¸¾£ £¸]¡¸¸½¿ ˆ½Å A National Core Group on Cyclone Monitoring &
Mitigation has been constituted and has been assigned
¢¨¸¢ž¸››¸ Ÿ¸¿°¸¸¥¸¡¸¸½¿/¢¨¸ž¸¸Š¸¸½¿/¬¸¿Š¸“›¸¸½¿ ˆ½Å ¤¸ú\¸ ¬¸Ÿ¸›¨¸¡¸ „œ¸¸¡¸÷¸¿°¸ ¬˜¸¸›¸ú¡¸ with the responsibility of looking warning protocols for
¥¸¸½Š¸¸½¿ Ÿ¸½¿ \¸½÷¸¸¨¸›¸ú ˆ½Å œÏ\¸¸£ ‚¸¾£ ÷¸’ú¡¸ £¸]¡¸¸½¿ ˆ½Å ¢¥¸‡ \¸ÇŨ¸¸÷¸ ‚¥œ¸úˆÅ£µ¸ cyclones; coordination mechanism between different
Central and State Ministries/ Departments /
í½÷¸º ¢ˆÅ‡ ]¸¸›¸½ ¨¸¸¥¸½ ‚¸¨¸©¡¸ˆÅ „œ¸¸¡¸¸½¿ ˆÅú ]¸¸¿\¸ ˆÅ£›¸½ ˆÅú ¢{¸ŸŸ¸½™¸£ú ¬¸¸ÿœ¸ú Š¸ƒÄ
Organisations; mechanism for dissemination of warning
í¾ A to the local people and cyclone mitigation measures
required to be taken for the coastal States.
‡ˆÅ ‚¸œ¸™¸ ]¸¸½¢‰¸Ÿ¸ œÏ¤¸¿š¸›¸ ˆÅ¸¡¸ÄÇÅŸ¸ ¡¸»‡›¸”úœ¸ú, ¡¸»‡¬¸‡‚¸ƒÄ”ú ‚¸¾£
A Disaster Risk Management Programme has been
¡¸»£¸½¢œ¸¡¸›¸ ¡¸»¢›¸¡¸›¸ ˆÅú ¬¸í¸¡¸÷¸¸ ¬¸½ 17 £¸]¡¸¸½¿ ˆ½Å ¬¸¨¸¸Ä¢š¸ˆÅ ]¸¸½¢‰¸Ÿ¸ ¬¸¿ž¸¸¢¨¸÷¸ taken up with the assistance from UNDP, USAID and
169 ¢{¸¥¸¸½¿ ‚¸¾£ „-œ¸»¨¸Ä ˆ½Å ¬¸ž¸ú 8 £¸]¡¸¸½¿ Ÿ¸½¿ \¸¥¸¸¡¸¸ Š¸¡¸¸ í¾ œ¸¢£¡¸¸½]¸›¸¸ European Union in 169 most hazard prone districts in 17
States including all the 8 North Eastern State. The
ˆÅ¸ ¢ÇÅ¡¸¸›¨¸¡¸›¸ ‚Æ÷¸»¤¸£, 2002 ¬¸½ œÏ¸£Ÿž¸ íº‚¸ ˜¸¸ A ˆÅ¸¡¸ÄÇÅŸ¸ ˆ½Å ¬¸¿‹¸’ˆÅ Ÿ¸½¿
implementation of the project commenced from
tkx:drk œ¸¾™¸ ˆÅ£›¸¸ ‚¸¾£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ¢©¸®¸¸, ÷¸¾¡¸¸£ú ¢›¸¡¸¸½]¸›¸, ®¸Ÿ¸÷¸¸ October, 2002. The programme components include

139
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¢›¸Ÿ¸¸Äµ¸, ¬¸Ÿ¸º¢\¸÷¸ ›¸ú¢÷¸¡¸¸¿ ÷¸¾¡¸¸£ ˆÅ£›¸¸, £¸]¡¸, ¢{¸¥¸¸, ‰¸¿” (¤¥¸¸ÁˆÅ), Š¸¸¿¨¸ awareness generation and public education,
preparedness, planning and capacity building,
Ÿ¸½¿ ¬¸¿¬˜¸¸Š¸÷¸, œÏ©¸¸¬¸¢›¸ˆÅ, ¢¨¸¢š¸ˆÅ ‚¸¾£ ÷¸ˆÅ›¸úˆÅú-¢¨¸¢š¸ˆÅ ©¸¸¬¸›¸, ©¸í£ú
developing appropriate policies, institutional,
¬˜¸¸›¸ú¡¸ ¢›¸ˆÅ¸¡¸ ‡¨¸¿ ¨¸¸”Ä ¬÷¸£ œ¸£ ‚¬¸º£®¸¸ ˆÅŸ¸ ˆÅ£›¸¸ ©¸¸¢Ÿ¸¥¸ í¾ A administrative, legal and techno-legal regime at State,
District, Block, village, urban local body and ward levels
10.2.2 £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ for reducing vulnerabilities.

10.2.2 Role of NHB

œÏ¸ˆ¼Å¢÷¸ˆÅ ‚¸œ¸™¸‚¸½¿ ˆÅ¸ ‚¸¨¸¸¬¸ú¡¸ ƒˆÅ¸ƒ¡¸¸½¿ œ¸£ ¢¨¸›¸¸©¸ˆÅ¸£ú ¬¸¿‹¸¸÷¸ í¸½
Natural disasters can have a devastating impact on
¬¸ˆÅ÷¸¸ í¾A œÏ¸ˆ¼Å¢÷¸ˆÅ ‚¸œ¸™¸‚¸½¿ ¬¸½ ¤¸”õ½ œ¸¾Ÿ¸¸›¸½ œ¸£ íºƒÄ Ÿ¸ˆÅ¸›¸¸½¿ ‚¸¾£ ¬¸¿œ¸¢î¸ ˆÅú dwelling units. To minimize the large scale destruction of
housing and property caused by natural disasters, the
í¸¢›¸ ˆÅ¸½ ˆÅŸ¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ £¸í÷¸ ˆÅ¸¡¸¸½ô Ÿ¸½¿ ¥¸Š¸½ ¬¸£ˆÅ¸£ú National Housing Bank has been continuously engaged
‚¢ž¸ˆÅ£µ¸¸½¿ ˆÅ¸½ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅ£›¸½ Ÿ¸½¿ ¢›¸£›÷¸£ ¨¡¸¬÷¸ £í¸ í¾ in providing financial assistance to Government
agencies engaged in relief work. For example, NHB had
„™¸í£µ¸¸˜¸Ä, £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ Š¸º]¸£¸÷¸ ˆ½Å ž¸»ˆ¿Åœ¸ œÏž¸¸¢¨¸÷¸ ®¸½°¸¸½¿ Ÿ¸½¿ £¸í÷¸ constituted a separate fund to assist in relief work in the
Gujarat earthquake affected areas. For this, NHB
ˆÅ¸¡¸¸½ô Ÿ¸½¿ ¬¸í¸¡¸÷¸¸ ˆ½Å ¢¥¸‡ ‡ˆÅ œ¸¼˜¸ˆÅ ˆÅ¸½«¸ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ ˜¸¸A ƒ¬¸ˆ½Å ¢¥¸‡, sanctioned 2 projects of Gujarat State Disaster
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ Š¸º]¸£¸÷¸ £¸]¡¸ ‚¸œ¸™¸ œÏ¤¸¿š¸›¸ œÏ¸¢š¸ˆÅ£µ¸ ˆÅú 2 Management Authority (GSDMA) and 1 project of
Gujarat Rural Housing Board (GRHB) with a loan
œ¸¢£¡¸¸½]¸›¸¸‡¿ ‚¸¾£ ÇÅŸ¸©¸À 242.31 ˆÅ£¸½”õ ²œ¸‡ ÷¸˜¸¸ 0.94 ˆÅ£¸½”õ ²œ¸‡ ˆ½Å component of Rs. 542.31 crore and Rs.0.99 crore
respectively. During 2001-02, Rs. 50.50 crore and Rs.
‡ˆÅ †µ¸ ¬¸¿‹¸’ˆÅ ˆ½Å ¬¸¸˜¸ Š¸º]¸£¸÷¸ ŠÏ¸Ÿ¸úµ¸ ‚¸¨¸¸¬¸ ¤¸¸½”Ä ˆÅú ‡ˆÅ œ¸¢£¡¸¸½]¸›¸¸
0.67 crore have been disbursed respectively to GSDMA
Ÿ¸¿{¸»£ ˆÅú ˜¸ú ¨¸«¸Ä 2001-02 ˆ½Å ™¸¾£¸›¸ „œ¸¡¸ºÄÆ÷¸ ™¸½›¸¸½¿ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ ˆÅ¸½ & GRHB.

ÇÅŸ¸©¸À 50.50 ˆÅ£¸½”õ ²œ¸‡ ‚¸¾£ 0.67 ˆÅ£¸½”õ ²œ¸‡ ¬¸¿¢¨¸÷¸¢£÷¸ ¢ˆÅ‡ Š¸‡ ˜¸½A
œÏ¸ˆ¼Å¢÷¸ˆÅ ‚¸¾£ Ÿ¸¸›¸¨¸ˆ¼Å÷¸ ‚¸œ¸™¸‚¸½¿ ˆ½Å ¬¸¿‹¸¸÷¸ ¬¸½ ¤¸ÿˆÅ ˆÅ¸½ ¤¸\¸¸›¸½ ‚¸¾£ ¨¡¸¸œ¸¸£
ˆÅ¸ \¸¥¸÷¸½ £í›¸¸ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡, Ÿ¸ºŸ¤¸ƒÄ ®¸½°¸ú¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸ Ÿ¸½¿ ‡ˆÅ
‚¸œ¸™¸ ¨¸¬¸»¥¸ú ˆÅ¸¡¸Ä¬˜¸¥¸ œ¸€£¨¸£ú, 2008 ¬¸½ \¸¸¥¸» ¢ˆÅ¡¸¸ Š¸¡¸¸ í¾A
10.3 $¸£ú¤¸ ¢í÷¸ˆÅ£ ‚¸¨¸¸¬¸
Ÿ¸»¥¸ž¸»÷¸ ‚¸¨¸¸¬¸ ˆ½Å œÏ¢÷¸ ¬¸¸¨¸Äž¸¸¾¢Ÿ¸ˆÅ œ¸íº¿\¸ ¬¸º¢›¸¢©\¸÷¸ ˆÅ£›¸¸ œÏ÷¡¸½ˆÅ ¬¸£ˆÅ¸£
ˆÅú Ÿ¸º‰¡¸ œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸ £í÷¸ú í¾A ¡¸˜¸½«’ ‚¸¨¸¸¬¸ ˆ½Å œÏ¢÷¸ œ¸íº¿\¸ ›¸ ˆ½Å¨¸¥¸ ‡ˆÅ
Ÿ¸»¥¸ Ÿ¸¸›¸¨¸ ‚¢š¸ˆÅ¸£ í¸½÷¸¸ í¾, ‚¢œ¸÷¸º ¬¸¿.£¸. ׸£¸ ¡¸˜¸¸ ¬˜¸¸¢œ¸÷¸ ’¬¸í踸¢¤™
¢¨¸ˆÅ¸¬¸ ¥¸®¡¸’ ˆÅ¸½ œÏ¸œ÷¸ ˆÅ£›¸½ ˆ½Å œÏ¢÷¸ ‡ˆÅ œÏŸ¸º‰¸ ¡¸¸½Š¸™¸›¸ˆÅ÷¸¸Ä ˆÅ¸£ˆÅ ž¸ú í¾A
‚¸¨¸¸¬¸ ‡ˆÅ ]¸¢’¥¸ ¬¸¿‹¸’ˆÅ í¾, Æ¡¸¸½¿¢ˆÅ ¡¸í ›¸ ˆ½Å¨¸¥¸ ¨¡¸¢Æ÷¸¡¸¸½¿ ˆÅ¸½ ‚¸ª¡¸
‚¸¾£ £í›¸½ ˆÅ¸ ¬˜¸¸›¸ „œ¸¥¸¤š¸ ˆÅ£¸÷¸¸ í¾ ‚¢œ¸÷¸º ‡ˆÅ œÏ¸˜¸¢Ÿ¸ˆÅ Ÿ¸¿\¸ ž¸ú œÏ™¸›¸
ˆÅ£÷¸¸ í¾, ¢]¸¬¸ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ Ÿ¸»¥¸ ¤¸º¢›¸¡¸¸™ú [¸¿\¸¸, £¸½{¸Š¸¸£, ¢©¸®¸¸, ¢\¸¢ˆÅ÷¬¸¸
¬¸½¨¸¸‡¿, †µ¸ ƒ÷¡¸¸¢™ ]¸¾¬¸ú ¢¨¸¢ž¸››¸ œÏˆÅ¸£ ˆÅú ¬¸½¨¸¸‡¿ œÏ¸œ÷¸ ˆÅú ]¸¸ ¬¸ˆÅ÷¸ú íÿ
‚¸¾£ „›¸ˆÅ¸ „œ¸¡¸¸½Š¸ ¢ˆÅ¡¸¸ ]¸¸ ¬¸ˆÅ÷¸¸ í¾ A
‚¢š¸ˆÅ÷¸£ ¥¸¸½Š¸¸½¿ ˆ½Å ¢¥¸‡ ‚¸¨¸¸¬¸ ‚ˆ½Å¥¸¸ ¬¸¤¸¬¸½ Ÿ¸í¿Š¸¸ ‚¢š¸ŠÏíµ¸ ¤¸›¸¸ £í÷¸¸
í¾ ‚¸¾£ ¬¸¸Ÿ¸¸›¡¸÷¸¡¸¸ š¸›¸¸[Ḡœ¸¼«“ž¸»¢Ÿ¸ ˆ½Å ¥¸¸½Š¸ íú ‡½¬¸½ í¸½÷¸½ íÿ ]¸¸½ ‡½¬¸½
To protect the Bank from the impact of natural and man-
made disasters and to ensure business continuity, the
Disaster Recovery (DR) Site at Mumbai Regional office
has been made operational since February 2008.
10.3 Pro-Poor Housing
Ensuring universal access to basic housing remains a
key priority of every government. The access to
adequate housing not only constitutes a basic human
right but also is a key contributing factor towards the
achievement of the Millennium Development Goals
(MDG’s) as set by the UN. Housing is a critical
component as it not only provides shelter and living
space for individuals, but also provides a basic platform
through which a variety of services and utilities like basic
infrastructure, employment, education, medical
services, credit etc, can be accessed.
Housing remains the single most expensive acquisition
for most people and generally people from affluent
backgrounds are the only ones capable of making
payments for such acquisitions up-front. Housing
finance is therefore critical to ensure improved access to

140
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‚¢š¸ŠÏíµ¸ ˆ½Å ¢¥¸‡ œ¸½©¸Š¸ú ž¸ºŠ¸÷¸¸›¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ ‚÷¸À ‚¸¨¸¸¬¸ ¢¨¸î¸, ¢¨¸©¸½«¸
³œ¸ ¬¸½ $¸£ú¤¸ œ¸¢£œÏ½®¡¸ ¬¸½ ¡¸˜¸½«’ ‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ ¬¸Ÿ¸º››¸÷¸ Ÿ¸¸Š¸Ä ¬¸º¢›¸¢©\¸÷¸
ˆÅ£›¸½ Ÿ¸½¿ ]¸¢’¥¸ í¾ ‚ž¸ú ž¸ú ‚¸¾œ¸\¸¸¢£ˆÅ ¢¨¸î¸ú¡¸ ¬¸¿¬˜¸¸›¸ ¬˜¸¸¢œ¸÷¸ †µ¸
¢£ˆÅ¸Á”Ä, ‡ˆÅ ¢›¸¡¸¢Ÿ¸÷¸ ‚¸¡¸ ‚¸¾£ ¢ˆÅ¬¸ú œÏˆÅ¸£ œ¸¸¢©¨¸ÄˆÅ-‚›¸º¥¸¸ž¸¸½¿ ˆ½Å ¬¸¸˜¸
ŠÏ¸íˆÅ¸½¿ ˆÅ¸½ „š¸¸£ ™½›¸¸ œ¸¬¸¿™ ˆÅ£÷¸½ íÿ ¢]¸›í½¿ ‚¢š¸ˆÅ¸¿©¸ $¸£ú¤¸ œ¸»£¸ ›¸íì ˆÅ£
¬¸ˆÅ÷¸½ íÿ A
‚÷¸À $¸£ú¤¸¸½¿ ˆ½Å ¢¥¸‡ ‚›¸ºˆ»Å¥¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆÅú ퟸ½©¸¸ ¬¸½ ¤¸[õ÷¸ú {¸³£÷¸ ˆ½Å
¤¸ú\¸ ¨¡¸¸œ¸ˆÅ ¢¨¸¬¸¿Š¸¢÷¸¡¸¸½¿ ‚¸¾£ „›¸ˆÅú ¨¸¸¬÷¸¢¨¸ˆÅ œ¸íº¿\¸ ˆÅ¸ ‚÷¡¸¸¨¸©¡¸ˆÅ ³œ¸
¬¸½ ¬¸Ÿ¸¸š¸¸›¸ ¢ˆÅ¡¸¸ ]¸¸›¸½ ˆÅú {¸³£÷¸ í¾ ]¸í¸¿ $¸¾£-¬¸£ˆÅ¸£ú ‚¸¾£ ¬¸Ÿ¸º™¸¡¸-
‚¸š¸¸¢£÷¸ ¬¸¿Š¸“›¸ š¸¸£µ¸ú¡¸ ¢ˆÅ›÷¸º $¸£ú¤¸ ¬¸Ÿ¸º™¸¡¸¸½¿ ˆÅ¸½ ¬¸ú¢Ÿ¸÷¸ ¢¨¸î¸ú¡¸
¬¸¿¬¸¸š¸›¸ œÏ™¸›¸ ˆÅ£ ¬¸ˆÅ÷¸½ íÿ, ¨¸íì ‚¸¾œ¸\¸¸¢£ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ ¤¸”õ½ œ¸¾Ÿ¸¸›¸½ ˆÅ¸
‚¸¨¸©¡¸ˆÅ ¢¨¸î¸œ¸¸½«¸µ¸ œÏ™¸›¸ ˆÅ£ ¬¸ˆÅ÷¸¸ í¾ ‡ˆÅ ¢›¸µ¸¸Ä¡¸ˆÅ £µ¸›¸ú¢÷¸ ¨¡¸¢«’
¢¨¸î¸ ‚¸¾£ ƒ¬¸½ ¬¸Ÿ¸º™¸¡¸-‚¸š¸¸¢£÷¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ ˆ½Å ¬¸¸˜¸ ]¸¸½”õˆÅ£ ¬¸¸˜¸ÄˆÅ
„››¸¡¸›¸ ˆ½Å ¢¥¸‡ ¬¸¿ž¸¸¨¸›¸¸‚¸½¿ ˆÅ¸ œ¸÷¸¸ ¥¸Š¸¸›¸½ ˆ½Å ¢¥¸‡ í¸½ ¬¸ˆÅ÷¸ú í¾ Ÿ¸º‰¡¸
\¸½÷¸¸¨¸›¸ú ‚¢ž¸›¸¨¸ˆÅ¸£ú ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ]¸ú¨¸›¸®¸Ÿ¸, ¬¸œ¸€¥¸ í¥¸ ÷¸¾¡¸¸£ ˆÅ£›¸¸
í¾ ¢]¸¬¸¬¸½ ‚¢š¸ˆÅ $¸£ú¤¸ œ¸¢£¨¸¸£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ÷¸ˆÅ œ¸íº¿\¸ ¬¸ˆ½¿Å ‚¸¾£ ƒ¬¸ˆ½Å
¬¸¸˜¸-¬¸¸˜¸, ‚¸¾œ¸\¸¸¢£ˆÅ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ ˆÅ¸½ ŠÏ¸íˆÅ¸½¿ ˆ½Å ‡ˆÅ ¢¨¸©¸¸¥¸ ¬¸Ÿ¸»í,
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‚¸¨¸¸¬¸ ‡¨¸¿ œ¸¡¸¸Ä¨¸¸¬¸ ›¸ú¢÷¸, 2007 ›¸ƒÄ ‚¸¨¸¸¬¸ú¡¸ œ¸¢£¡¸¸½]¸›¸¸‚¸½¿ Ÿ¸½¿ ‚¸¢˜¸ÄˆÅ
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ˆ½Å ˆÅ¸£µ¸ „›¸ˆ½Å ¢¥¸‡ ¨¸í›¸ú¡¸ ‚¸¨¸¸¬¸ ˆ½Å œÏ¸¨¸š¸¸›¸ Ÿ¸½¿ ¬¸£ˆÅ¸£ ˆÅú ž¸»¢Ÿ¸ˆÅ¸ œ¸£
ž¸ú ¤¸¥¸ ¢™¡¸¸ Š¸¡¸¸ í¾A $¸£ú¤¸¸½¿ ˆÅú ‚¸¨¸¸¬¸ú¡¸ {¸³£÷¸ ˆ½Å ¬¸Ÿ¸¸š¸¸›¸ ˆ½Å ¢¥¸‡
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‚¸¨¸¸¬¸ ˆÅ¸¡¸ÄÇÅŸ¸, ž¸¸£÷¸ ¢›¸Ÿ¸¸Äµ¸, ƒ¿¢™£¸ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸, ¤¸ú¬¸ ¢Ÿ¸¢¥¸¡¸›¸
ˆÅ¸¡¸ÄÇÅŸ¸ ˆ½Å ‚š¸ú›¸ ‚¸¨¸¸¬¸ ƒ÷¡¸¸¢™ ]¸¾¬¸ú ¢¨¸¢ž¸››¸ $¸£ú¤¸ ‚›¸ºˆ»Å¥¸ ¡¸¸½]¸›¸¸‚¸½¿
ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ œÏ¡¸¸¬¸ ˆÅ£ £íú í¾A ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä ˆÅ¸½
„š¸¸£ ™½›¸½ ˆ½Å ¢¥¸‡ ž¸¸£÷¸ú¡¸ ¢£{¸¨¸Ä ¤¸ÿˆÅ ‚¢š¸™½©¸ ™½÷¸¸ í¾ ¢ˆÅ ¬¸ž¸ú ¨¸¸¢µ¸¢]¡¸ˆÅ
¤¸ÿˆÅ¸½¿ ˆÅú „š¸¸£ ™½›¸½ ¬¸¿¤¸¿š¸ú Š¸¢÷¸¢¨¸¢š¸ ˆÅ£ 40 œÏ¢÷¸©¸÷¸ œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸ œÏ¸œ÷¸ ®¸½°¸
ˆÅ¸½ ¢™¡¸¸ ]¸¸‡, ¢]¸¬¸Ÿ¸½¿ ˆ¼Å¢«¸, ¢©¸®¸¸, ¥¸‹¸º ¨¡¸¨¸¬¸¸¡¸ ‚¸¾£ ¨¡¸¢«’ „œ¸ÇÅŸ¸¸½¿ ˆ½Å
‚¢÷¸¢£Æ÷¸ ‚¸¨¸¸¬¸ ®¸½°¸ ©¸¸¢Ÿ¸¥¸ í¾A ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸, „š¸¸£ ™½›¸½ ˆ½Å ƒ¬¸ 40
141
Report on Trend and Progress of Housing in India, 2008
adequate housing, particularly from the perspective of
the poor. Yet, formal financial institutions prefer lending
to clients with established credit records, a regular
income and some sort of collateral prerequisites that
most poor cannot fulfil.
Therefore, the wide discrepancies between the ever-
growing need for pro-poor housing finance and its
actual reach need to be urgently addressed. While non-
governmental and community-based organizations can
provide sustainable but limited financial resources to
poor communities, the formal housing finance sector
can provide the necessary big-scale financing. A crucial
strategy could be to explore possibilities for significant
up-scaling of the micro-credit and community-based
housing finance sector by linking it with the formal
housing finance sector. The key challenge is to formulate
innovative, economically viable, win-win solutions,
whereby more poor households have access to housing
finance, simultaneously providing the formal housing
finance sector with access to a vast, hitherto
unreachable, group of clients.
The Central and State governments have initiated
various schemes to realize their vision of “Affordable
Housing for All”. The National Urban Housing and
Habitat Policy of 2007 lay emphasis on earmarking of
land for the EWS/LIG sections in new housing projects.
The policy also laid emphasis on the role of the
government in the provision of affordable housing to the
EWS/LIG sections due to their financial constraints. To
address the housing needs of the poor, the government
continues to make efforts through the various pro-poor
schemes like JNNURM, 2MHP, Bharat Nirman, IAY,
Housing under Twenty Million Program etc. To
encourage lending to the EWS/LIG sections, RBI
mandates that 40 per cent of all commercial bank
lending activity be made to the “Priority Sector” which
includes housing sector in addition to agriculture,
education, small business and micro enterprise. Further,
of this 40 per cent of lending, 25 per cent should be
made to the weaker sections which include small and
marginal farmers, artisans and cottage industries,
certain castes and tribes, and self-help groups.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
œÏ¢÷¸©¸÷¸ Ÿ¸½¿ ¬¸½ 25 œÏ¢÷¸©¸÷¸ ˆÅŸ¸{¸¸½£ ¨¸Š¸¸½¿Ä, ¢]¸›¸Ÿ¸½¿ Ž¸½’½ ‚¸¾£ ¬¸úŸ¸¸›÷¸
¢ˆÅ¬¸¸›¸, ˆÅ¸Ÿ¸Š¸¸£, ˆºÅ’ú£ „Ô¸¸½Š¸, ˆÅ¢÷¸œ¸¡¸ ]¸¸¢÷¸¡¸¸¿, ]¸›¸ ]¸¸¢÷¸¡¸¸¿ ‚¸¾£
¬¨¸¡¸¿-¬¸í¸¡¸÷¸¸ ŠÏºœ¸ ©¸¸¢Ÿ¸¥¸ íÿ, ˆÅ¸½ ¢™¡¸¸ ]¸¸›¸¸ \¸¸¢í‡A
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ¢¨¸¢ž¸››¸ œÏ¡¸¸¬¸¸½¿ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½
‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸ ‚¸¡¸ ¨¸Š¸¸½¿Ä ˆ½Å ¢¥¸‡ „š¸¸£ ™½›¸½ ˆÅ¸½
œÏ¸½÷¬¸¸¢í÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¢¨¸¢ž¸››¸ ˆÅ™Ÿ¸ „“¸‡ íÿ À-
ˆÅ. ‚›¸º¬¸»¢\¸÷¸ ¤¸ÿˆÅ¸½¿, ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ ¬¸íˆÅ¸£ú ®¸½°¸ ˆ½Å
¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ 100 œÏ¢÷¸©¸÷¸ œ¸º›¸¢¨¸Äî¸ ¬¸í¸¡¸÷¸¸ œÏ™¸›¸ ˆÅ£›¸¸A
‰¸. $¸£ú¤¸¸½¿ ˆ½Å ¢¥¸‡ ‡ˆÅ ¢¨¸©¸½«¸ ¡¸¸½]¸›¸¸ œÏ¸£Ÿž¸ ˆÅ£›¸¸ ]¸¾¬¸½ ¢ˆÅ
ƒ¿¢™£¸ ‚¸¨¸¸¬¸ ¡¸¸½]¸›¸¸ ˆ½Å ‚š¸ú›¸ ’’¸Áœ¸-‚œ¸’ ¥¸¸½›¸ ˆ½Å
¢í÷¸¸¢š¸ˆÅ¸¢£¡¸¸½¿ ˆ½Å ¢¥¸‡ œ¸º›¸¢¨¸Äî¸ ¡¸¸½]¸›¸¸A
Š¸. ŠÏ¸Ÿ¸úµ¸ ®¸½°¸¸½¿ Ÿ¸½¿ ‚]¸ÄˆÅ ‚¸¨¸¸¬¸ ˆÅ¸ ©¸ºž¸¸£Ÿž¸A
‹¸. ¢›¸Ÿ›¸ ‚¸¡¸/‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½ ˆÅŸ¸{¸¸½£ ¨¸Š¸¸½¿Ä ˆÅú {¸³ £÷¸½¿ œ¸»£ú
ˆÅ£›¸½ ¨¸¸¥¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸¿ ¬˜¸¸¢œ¸÷¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡
¬¸¸Ÿ¡¸ œ¸»¿]¸ú (ƒ¢Æ¨¸’ú) ¬¸í¸¡¸÷¸¸ ¬¸¿¤¸¿š¸ú ¢™©¸¸-¢›¸™½Ä©¸
‹¸¸½¢«¸÷¸A
Œ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸ˆÅ£µ¸¸½¿, ¬¸¸¨¸Ä]¸¢›¸ˆÅ-
¢›¸]¸ú ž¸¸Š¸ú™¸£ú, ¬¸¿¡¸ºÆ÷¸ „Ô¸Ÿ¸¸½¿, $¸¾£-¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿,
¨¡¸¢«’ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸¸½¿ ƒ÷¡¸¸¢™ ˆÅ¸½ œ¸¢£¡¸¸½]¸›¸¸ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸
œÏ™¸›¸ ˆÅ£÷¸¸ í¾A $¸¾£-¬¸£ˆÅ¸£ú ¬¸¿Š¸“›¸¸½¿ ‚¸¾£ ¨¡¸¢«’ ¢¨¸î¸
¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸½ ¢¨¸î¸ú¡¸ ¬¸í¸¡¸÷¸¸ ‚¸¢˜¸ÄˆÅ ³œ¸ ¬¸½
ˆÅŸ¸{¸¸½£/¢›¸Ÿ›¸‚¸¡¸ ¨¸Š¸¸½¿Ä ˆ½Å ¢í÷¸¸¢š¸ˆÅ¸¢£¡¸¸½¿ ˆÅú ‚¸¨¸¸¬¸ú¡¸
{¸³£÷¸¸½¿ ˆÅ¸ ¬¸Ÿ¸¸š¸¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ™ú ]¸¸÷¸ú í¾ A ˆºÅŽ
‚¢ž¸ˆÅ£µ¸¸½¿ ˆÅ¸½ †µ¸ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆ½Å ¢¨¸©¸½«¸ ˆÅ¸½«¸ ˆ½Å
‚š¸ú›¸ Š¸¿™ú-¤¸¬÷¸ú ¬¸ºš¸¸£/œ¸º›¸¢¨¸ÄˆÅ¸¬¸ ‚¸¾£ ‚¥œ¸ ¥¸¸Š¸÷¸
‚¸¨¸¸¬¸ ˆ½Å ¢¥¸‡ œÏ™¸›¸ ¢ˆÅ‡ ]¸¸÷¸½ íÿA
\¸. ¢¨¸©¸½«¸ ˆÅ¸½«¸ - Š¸¿™ú ¤¸¬÷¸ú ¬¸ºš¸¸£ ‡¨¸¿ ‚¥œ¸ ¥¸¸Š¸÷¸ ‚¸¨¸¸¬¸A
10.4 2007-08 ˆ½Å ™¸¾£¸›¸ ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ (¢¨¸œ¸£ú÷¸
¤¸¿š¸ˆÅ) †µ¸ ¬¸¿¤¸¿š¸ú ‹¸’›¸¸ÇÅŸ¸
2007-08 ˆ½Å ˆ½Å›Íú¡¸ ¤¸]¸’ Ÿ¸½¿ ¬¸ŸŸ¸¸›¸›¸ú¡¸ ¢¨¸î¸ Ÿ¸¿°¸ú ׸£¸ ˆÅú Š¸ƒÄ
‹¸¸½«¸µ¸¸ ˆ½Å ‚›¸º¬¸£µ¸ Ÿ¸½¿ ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ (¢¨¸œ¸£ú÷¸ ¤¸¿š¸ˆÅ) †µ¸
™½©¸ Ÿ¸½¿ £¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ׸£¸ œÏ¸£Ÿž¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸A
142
Report on Trend and Progress of Housing in India, 2008
The National Housing Bank (NHB) has also taken various
steps to encourage lending for the EWS/LIG housing
programmes through various efforts such as:
a. Providing 100% refinance support to scheduled
banks, HFCs and co-operative sector
institutions
b. Launch of special scheme for the poor such as
the Refinance Scheme for Top-Up Loan to
Beneficiaries under Indira Awas Yojana
c. Launch of Productive Housing in Rural Areas
d. Announced the equity support guidelines for
setting up HFCs catering to the LIG/EWS
segments
e. NHB provides project finance assistance to
public agencies, public-private partnerships,
joint ventures, NGOs, MFIs etc. Financial
support is provided to NGOs and MFIs for
addressing the housing needs of the EWS/LIG
category of beneficiaries. Loans have been
provided for slum improvement/redevelopment
and low cost housing under NHB’s Special (VDS)
Fund to some of the agencies.
f. Special Fund Slum Improvement and Low Cost
Housing Fund.
10.4 Developments under Reverse
Mortgage Loan during 2007-08
Pursuant to the announcement by Hon’ble
Finance Minister in the Union Budget 2007-08,
Reverse Mortgage Loan (RML) was introduced
in the country by the National Housing Bank
(NHB).
l NHB formulated the Operational Guidelines for
RML, in consultation with the Primary Lending
Institutions (PLIs) viz. Banks and Housing
Finance Companies (HFCs) in May 2007.
l In the Union Budget 2008-09, the Income-tax
Act, 1961 was amended. The amendments were
(i) A new subsection (xvi) to Section 47 of the
Income Tax Act providing that reverse mortgage
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ˆ½Å ¢¥¸‡ œ¸¢£\¸¸¥¸›¸¸÷Ÿ¸ˆÅ would not amount to “transfer” and (ii) insertion
of a new subsection (43) under Section 10 of the
¢™©¸¸-¢›¸™½Ä©¸ œÏ¸˜¸¢Ÿ¸ˆÅ †µ¸™¸÷¸¸ ¬¸¿¬˜¸¸›¸¸½¿ ‚˜¸¸Ä÷¸Ã ¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸
Income Tax Act to the effect that the stream of
¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å œ¸£¸Ÿ¸©¸Ä ¬¸½ Ÿ¸ƒÄ, 2007 Ÿ¸½¿ ÷¸¾¡¸¸£ ¢ˆÅ‡ ˜¸½A payments received by the senior citizen under
2008-09 ˆ½Å ˆ½Å›Íú¡¸ ¤¸]¸’ Ÿ¸½¿ ‚¸¡¸ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸, 1961, RML scheme made & notified by the Central
¬¸¿©¸¸½¢š¸÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸A ¬¸¿©¸¸½š¸›¸ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ˜¸½ À- (1) ¡¸í Government would not be treated as “income”.
Consequent to these amendments, a borrower,
„œ¸¤¸¿¢š¸÷¸ ˆÅ£÷¸½ íº‡, ‚¸¡¸ˆÅ£ ‚¢š¸¸¢›¸¡¸Ÿ¸ ˆÅú š¸¸£¸ 47 Ÿ¸½¿ ‡ˆÅ ›¸ƒÄ
under this Scheme, will be liable to income tax
„œ¸-š¸¸£¸ (xvi) ©¸¸¢Ÿ¸¥¸ ˆÅú Š¸ƒÄ ˜¸ú ¢ˆÅ ¢£¨¸¬¸Ä Ÿ¸¸’ÄŠ¸½]¸ ‚¿÷¸£µ¸ ˆ½Å (in nature of tax on Capital Gains) only at the
¤¸£¸¤¸£ ›¸íì í¸½Š¸¸ ‚¸¾£ (2)‚¸¡¸ˆÅ£ ‚¢š¸¢›¸¡¸Ÿ¸ ˆÅú š¸¸£¸ 10 ˆ½Å point of alienation of the mortgaged property by
‚š¸ú›¸ ‡ˆÅ ›¸ƒÄ „œ¸-š¸¸£¸ ˆÅ¸ ƒ¬¸ ¢™©¸¸ Ÿ¸½¿ ¢›¸¨¸½©¸›¸ ¢ˆÅ ˆ½Å›Í ¬¸£ˆÅ¸£ the mortgagee for the purposes of recovering
׸£¸ ÷¸¾¡¸¸£ ‚¸¾£ ‚¢š¸¬¸»¢\¸÷¸ ˆÅú Š¸ƒÄ ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ¡¸¸½]¸›¸¸ ˆ½Å the loan.
‚š¸ú›¸ ¨¸¢£«“ ›¸¸Š¸¢£ˆÅ ׸£¸ œÏ¸œ÷¸ ž¸ºŠ¸÷¸¸›¸ ˆÅú š¸¸£¸ ¡¸˜¸¸ ’‚¸¡¸’ l NHB, to create awareness and to educate
›¸íì ¬¸Ÿ¸^¸ú ]¸¸‡Š¸úA ƒ›¸ ¬¸¿©¸¸½š¸›¸¸½¿ ˆ½Å œ¸¢£µ¸¸Ÿ¸¬¨¸³œ¸, ƒ¬¸ ¡¸¸½]¸›¸¸ ˆ½Å prospective RML borrowers, has issued
‚š¸ú›¸ ˆÅ¸½ƒÄ ž¸ú „š¸¸£ˆÅ÷¸¸Ä (œ¸»¿]¸ú ‚¢ž¸¥¸¸ž¸ œ¸£ ˆÅ£ ˆÅú œÏˆ¼Å¢÷¸ Ÿ¸½¿) promotional literature relating to RML. In this
‚¸¡¸ˆÅ£ ˆÅ¸ ž¸¸Š¸ú ˆ½Å¨¸¥¸ ¤¸¿š¸ˆÅŠÏ¸íú ׸£¸ ‚œ¸›¸½ †µ¸ ˆÅú ¨¸¬¸»¥¸ú ˆ½Å connection, seminars/ workshops/ interactions
„Ó½©¡¸ ¬¸½ ¤¸¿š¸ˆÅ £‰¸ú ¬¸¿œ¸¢î¸ ˆ½Å í¬÷¸¸¿÷¸£µ¸ ˆ½Å ¬¸Ÿ¸¡¸ œ¸£ í¸½Š¸¸ A have been held at different centres to
disseminate information.
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ˆÅ¸½ ¢£¨¸¬¸Ä Ÿ¸¸Á’ŠÄ ¸½]¸ †µ¸ ˆ½Å ¬¸¿ž¸¸¢¨¸÷¸ „š¸¸£ˆÅ÷¸¸Ä‚¸½¿ Ÿ¸½¿
]¸¸Š¸³ˆÅ÷¸¸ œ¸¾™¸ ˆÅ£›¸¸ ‚¸¾£ „›í½¿ ¢©¸¢®¸÷¸ ˆÅ£›¸¸ í¾, ¬¸¸˜¸ íú, £¸«’ïú¡¸ l As per information available, 12 Banks and 2
‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ ¢£¨¸¬¸Ä Ÿ¸¸Á’ŠÄ ¸½]¿ ¸ †µ¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ¬¸¿¨¸š¸Ä›¸¸÷Ÿ¸ˆÅ ¬¸¸¢í÷¡¸ HFCs have launched RML Scheme.
]¸¸£ú ¢ˆÅ¡¸¸ í¾ ƒ¬¸ ¬¸¿¤¸¿š¸ Ÿ¸½¿ ]¸¸›¸ˆÅ¸£ú ˆ½Å œÏ\¸¸£ ˆ½Å ¢¥¸‡ ¢¨¸¢ž¸››¸ ˆ½Å›Í¸½¿ œ¸£ l As per information available, around 500 RMLs
¬¸¿Š¸¸½¢«“¡¸¸¿/ˆÅ¸¡¸Ä©¸¸¥¸¸‡¿/œ¸£¬œ¸£ ¨¸¸÷¸¸Ä¥¸¸œ¸ ‚¸¡¸¸½¢]¸÷¸ ¢ˆÅ‡ Š¸‡ íÿ A of Rs. 240 crore (approx) were sanctioned.
„œ¸¥¸¤š¸ ]¸¸›¸ˆÅ¸£ú ˆ½Å ‚›¸º¬¸¸£, 12 ¤¸ÿˆÅ¸½¿ ‚¸¾£ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ l The loans were distributed over Delhi, Haryana,
›¸½ ¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ ¡¸¸½]¸›¸¸ œÏ¸£Ÿž¸ ˆÅú í¾ A Maharashtra, Andhra Pradesh, Karnataka,
„œ¸¥¸¤š¸ ]¸¸›¸ˆÅ¸£ú ˆ½Å ‚›¸º¬¸¸£, 240 ˆÅ£¸½”õ ²œ¸‡ ˆ½Å ¥¸Š¸ž¸Š¸ 500 Gujarat, Bihar, Chattisgarh, Punjab, Madhya
Pradesh, Tamil Nadu, Rajasthan, Uttarakhand,
¢£¨¸¬¸Ä Ÿ¸¸Á’ÄŠ¸½]¸ †µ¸ Ÿ¸¿{¸»£ ¢ˆÅ‡ Š¸‡ íÿA Jammu & Kashmir, Uttar Pradesh, West Bengal,
†µ¸ ¢™¥¥¸ú, í¢£¡¸¸µ¸¸, Ÿ¸í¸£¸«’ï, ‚¸¿šÏ œÏ™½©¸, ˆÅ›¸¸Ä’ˆÅ, Š¸º]¸£¸÷¸, Kerala etc.
¢¤¸í¸£, Žî¸ú¬¸Š¸[õ, œ¸¿]¸¸¤¸, Ÿ¸š¡¸ œÏ™½©¸, ÷¸¢Ÿ¸¥¸›¸¸”º, £¸]¸¬˜¸¸›¸,
„¸‰Ã¸¿”, ]¸ŸŸ¸» o d'ehj, „ œÏ™½©¸, œ¸¢©\¸Ÿ¸ ¤¸¿Š¸¸¥¸, ˆ½Å£¥¸
ƒ÷¡¸¸¢™ Ÿ¸½¿ ¬¸¿¢¨¸÷¸¢£÷¸ ¢ˆÅ‡ Š¸‡ íÿ A 10.5 Title Indemnity

10.5.1 Introduction

10.5 ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ (íˆÅ) ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä 1. Title insurance is a special category of indemnity.
10.5.1 œÏ¬÷¸¸¨¸›¸¸ It is a policy of indemnity in respect of
title to real property. A title insurance policy
1. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅ¸ ¤¸úŸ¸¸ ®¸¢÷¸œ¸»¢÷¸Ä ˆÅú ‡ˆÅ ¢¨¸©¸½«¸ ª½µ¸ú í¸½÷¸ú í¾ A ¡¸í
insures the insured party that certain information
¨¸¸¬÷¸¢¨¸ˆÅ ¬¸¿œ¸¢î¸ ˆ½Å ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ (íˆÅ) ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ ®¸¢÷¸œ¸»¢÷¸Ä ˆÅú in relation to a property is correct and if it
‡ˆÅ œ¸¸Á¢¥¸¬¸ú í¾ A ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ¤¸úŸ¸¸ œ¸¸Á¢¥¸¬¸ú ¤¸úŸ¸¸ˆ¼Å÷¸ œ¸®¸ˆÅ¸£ ˆÅ¸½ transpires that the information is incorrect the
¬¸º£¢®¸÷¸ ˆÅ£÷¸ú í¾ ¢ˆÅ ¢ˆÅ¬¸ú ¬¸¿œ¸¢î¸ ˆ½Å ¬¸¿¤¸¿š¸ Ÿ¸½¿ ˆÅ¢÷¸œ¸¡¸ ]¸¸›¸ˆÅ¸£ú title insurer will indemnify the insured against
“úˆÅ í¾ ‚¸¾£ ¡¸¢™ ¡¸í Ÿ¸¸¥¸»Ÿ¸ í¸½ ]¸¸÷¸ú í¾ ¢ˆÅ ]¸¸›¸ˆÅ¸£ú $¸¥¸÷¸ í¾, ÷¸¤¸ actual loss suffered.
¬¨¸÷¨¸¸¢š¸ˆÅ£ (íˆÅ) ˆÅ¸ ¤¸úŸ¸¸ˆÅ÷¸¸Ä ¨¸¸¬÷¸¨¸ Ÿ¸½¿ íºƒÄ í¸¢›¸ ˆ½Å ¢¥¸‡
2. The basic difference of title indemnity from that
¤¸úŸ¸¸ˆ¼Å÷¸ ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä ˆÅ£½Š¸¸ A of other general insurance is that, a general
insurance policy will usually cover the insured
2. ‚›¡¸ ¬¸¸š¸¸£µ¸ ¤¸úŸ¸¸ ¬¸½ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ (íˆÅ) ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä ˆ½Å against a future event which may or may not
¤¸úŸ¸¸ Ÿ¸½¿ Ÿ¸»¥¸ ‚¿÷¸£ ¡¸í í¾ ¢ˆÅ ¬¸¸š¸¸£µ¸ ¤¸úŸ¸¸ œ¸¸Á¢¥¸¬¸ú Ÿ¸½¿ ‚¸Ÿ¸÷¸¸¾£ occur. A title insurance policy covers the insured
œ¸£ ¤¸úŸ¸¸ˆ¼Å÷¸ ˆÅ¸½ ¢ˆÅ¬¸ú ‡½¬¸ú ž¸¸¨¸ú ‹¸’›¸¸ ˆÅú ¬¸º£®¸¸ ©¸¸¢Ÿ¸¥¸ í¸½Š¸ú for past events; that there are, for example, no
mortgages registered over the land as at the
]¸¸½ í¸½ ž¸ú ¬¸ˆÅ÷¸ú í¾ ‚˜¸¨¸¸ ›¸íì ž¸ú ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ¤¸úŸ¸¸ date of the insurance policy.

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œ¸¸Á¢¥¸¬¸ú Ÿ¸½¿ ¤¸úŸ¸¸ˆ¼Å÷¸ ˆÅú ¢¨¸Š¸÷¸ ˆÅú ‹¸’›¸¸‚¸½¿ ˆÅú ¬¸º£®¸¸ ©¸¸¢Ÿ¸¥¸ 3. The premium is a one-off payment based on the
í¸½÷¸ú í¾ ¢ˆÅ „™¸í£µ¸¸˜¸Ä, ¡¸˜¸¸ ¤¸úŸ¸¸ œ¸¸Á¢¥¸¬¸ú ˆÅú ÷¸¸£ú‰¸ ˆÅ¸½ ž¸»¢Ÿ¸ property value at purchase and the policy runs
for as long the buyer is the owner of the property.
œ¸£ ˆÅ¸½ƒÄ ¤¸¿š¸ˆÅ œ¸¿]¸úˆ¼Å÷¸ ›¸íì íº‚¸ í¾ A
In future years as the value of the property
increases, it is possible to top up the insurance
3. œÏú¢Ÿ¸¡¸Ÿ¸ ‰¸£ú™›¸½ ˆ½Å ¬¸Ÿ¸¡¸ ¬¸¿œ¸¢î¸ ˆ½Å Ÿ¸»¥¡¸ œ¸£ ‚¸š¸¸¢£÷¸ ‡ˆÅ¥¸ amount by endorsement.
‚¸”Ä£ ž¸ºŠ¸÷¸¸›¸ í¸½÷¸¸ í¾ ‚¸¾£ œ¸¸Á¢¥¸¬¸ú ÷¸¤¸ ÷¸ˆÅ \¸¥¸÷¸ú í¾ ]¸¤¸ ÷¸ˆÅ 4. Title indemnity protects a person from losses
¢ˆÅ ‰¸£ú™¸£ ¬¸¿œ¸¢î¸ ˆÅ¸ ¬¨¸¸Ÿ¸ú ¤¸›¸¸ £í÷¸¸ í¾ ‚¸Š¸¸Ÿ¸ú ¨¸«¸¸½¿Ä Ÿ¸½¿, ]¸¾¬¸½ arising due to problems in the title of the
property. A property may go through several
íú ¬¸¿œ¸¢î¸ ˆÅ¸ Ÿ¸»¥¡¸ ¤¸[õ÷¸¸ í¾, ¨¸¾¬¸½ íú œ¸¼«“¸¿ˆÅ›¸ ׸£¸ ¤¸úŸ¸¸ £¸¢©¸ ˆÅ¸½ ownership changes, and the land on which it
œ¸»£¸ ˆÅ£›¸¸ ¬¸¿ž¸¨¸ í¾ A stands may have gone through even more. It is
designed to protect the insured from losses
4. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ (íˆÅ) ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä, ¢ˆÅ¬¸ú ž¸ú ¨¡¸¢Æ÷¸ ˆÅ¸½ ¬¸¿œ¸¢î¸ ˆ½Å arising because of defects or an event occurring
¬¨¸÷¨¸¸¢š¸ˆ ¸£ Ÿ¸½¿ ¬¸Ÿ¸¬¡¸¸‚¸½¿ ˆ½Å ˆÅ¸£µ¸ ¬¸½ í¸½ £íú í¸¢›¸¡¸¸½¿ ¬¸½ ¬¸º£®¸¸ prior to the time the policy is issued. It covers the
insured party for any claims and legal fees that
™½÷¸ú í¾ ¢ˆÅ¬¸ú ¬¸¿œ¸¢î¸ ˆ½Å ¬¨¸¸¢Ÿ¸÷¨¸ Ÿ¸½¿ ˆÅƒÄ œ¸¢£¨¸÷¸Ä›¸ í¸½ ¬¸ˆÅ÷¸½ í¾ÿ
arise out of such problems.
‚¸¾£ ¢]¸¬¸ ž¸»¢Ÿ¸ œ¸£ ¡¸í ¢¬˜¸÷¸ í¾, „¬¸Ÿ¸½¿ ‚¸¾£ ‚¢š¸ˆÅ œ¸¢£¨¸÷¸Ä›¸ í¸½
¬¸ˆÅ÷¸½ íÿ ¡¸í ¤¸úŸ¸¸ˆ¼Å÷¸ ˆÅ¸½ „›¸ í¸¢›¸¡¸¸½¿ ¬¸½ ¬¸º£®¸¸ œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å 5. Title Indemnity should be seen as value added
¢¥¸‡ ÷¸¾¡¸¸£ ˆÅú ]¸¸÷¸ú í¾, ]¸¸½ œ¸¸Á¢¥¸¬¸ú ]¸¸£ú ˆÅú ]¸¸›¸½ ˆ½Å ¬¸Ÿ¸¡¸ ¬¸½ Risk Cover product wrapped around a core of
™¸½«¸¸½¿ ‚¸¾£ í¸½›¸½ ¨¸¸¥¸ú ‹¸’›¸¸ ˆ½Å ˆÅ¸£µ¸ í¸½÷¸ú í¾A ¡¸í ¤¸úŸ¸¸ˆ¼Å÷¸ Title Search. Title Search is a database driven
œ¸®¸ˆÅ¸£ ˆ½Å ¢¥¸‡ ¢ˆÅ¬¸ú ™¸¨¸½ ‚˜¸¨¸¸ ¢¨¸¢š¸ˆÅ ©¸º¥ˆÅ, ]¸¸½ ‡½¬¸ú activity wherein the ownership is established
¬¸Ÿ¸¬¡¸¸‚¸½¿ ¬¸½ „÷œ¸››¸ í¸½½÷¸¸ í¾, ¬¸½ ¬¸º£®¸¸ œÏ™¸›¸ ˆÅ£÷¸ú í¾ A through chain of title and prior encumbrances if
any. Although what is to be established is
5. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ (íˆÅ) ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ÷¸¥¸¸©¸ ˆ½Å fundamentally the same for every state, there
‡ˆÅ ˆ½Å›Í¢¤¸¿™º ˆ½Å \¸¸£¸½¿ ‚¸½£ ¢¥¸œ¸’½ Ÿ¸»¥¡¸ ]¸º”õ½ ]¸¸½¢‰¸Ÿ¸ ¬¸º£®¸¸ will be variations in terms of where the
„÷œ¸¸™ ˆ½Å ³œ¸ Ÿ¸½¿ ™½‰¸ú ]¸¸›¸ú \¸¸¢í‡ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ÷¸¥¸¸©¸ ‡ˆÅ
ownership data comes from and state /local
‚¸¿ˆÅ”õ¸ ‚¸š¸¸£ \¸¸¢¥¸÷¸ Š¸¢÷¸¢¨¸¢š¸ í¾ ¢]¸¬¸Ÿ¸½¿ ¬¨¸¸¢Ÿ¸÷¨¸ ˆÅ¸½ †µ¸
regulations that creates potential encum-
ž¸¸£, ¡¸¢™ ˆÅ¸½ƒÄ í¾, ¬¸½ œ¸»¨¸Ä ‚¸¾£ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ‡ˆÅ ª¼¿‰¸¥¸¸ ˆ½Å
brances. The success, reliability and affordability
Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¬˜¸¸¢œ¸÷¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ¡¸Ô¸¢œ¸, ]¸¸½ ˆºÅŽ ž¸ú ¬˜¸¸¢œ¸÷¸
of an appropriate Title Search essentially decide
¢ˆÅ¡¸¸ ]¸¸‡Š¸¸, Ÿ¸»¥¸ž¸»÷¸ ³œ¸ ¬¸½ ¨¸íú œÏ÷¡¸½ˆÅ £¸]¡¸ ˆ½Å ¢¥¸‡ í¸½Š¸¸ ,
the scope of the coverage and its cost. It logically
÷¸˜¸¸¢œ¸, ¡¸í¸¿ „¬¸ ´¢«’ ¬¸½ ¢¨¸¢ž¸››¸÷¸¸‡¿ í¸½¿Š¸ú ¢ˆÅ ¬¨¸¸¢Ÿ¸÷¨¸ ˆ½Å
follows that exclusions will overshadow coverage
‚¸¿ˆÅ”õ ‚¸¾£ £¸]¡¸/¬˜¸¸›¸ú¡¸ ¢¨¸¢›¸¡¸Ÿ¸ ]¸¸½ ¬¸¿ž¸¸¢¨¸÷¸ †µ¸ ž¸¸£
if adequate data is not available or feasible
„÷œ¸››¸ ˆÅ£÷¸½ íÿ, ˆÅí¸¿ ¬¸½ ‚¸÷¸½ íÿ ? ¢ˆÅ¬¸ú ž¸ú ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú
thereby making Title Indemnity either too limited
¬¸Ÿ¸º¢\¸÷¸ ¬¸œ¸€¥¸÷¸¸, ¢¨¸©¨¸¬¸›¸ú¡¸÷¸¸ ‚¸¾£ ¨¸í›¸ú¡¸÷¸¸ ‚¢›¸¨¸¸¡¸Ä ³œ¸
for the beneficiary or unviable to the provider.
¬¸½ ¬¸º£®¸¸ ˆÅ¸ ®¸½°¸ ‚¸¾£ „¬¸ˆÅú ¥¸¸Š¸÷¸ ¢¨¸¢›¸¢©\¸÷¸ ˆÅ£÷¸ú í¾ ¡¸í
÷¸¸¢ˆÄňŠ³œ¸ ¬¸½ í¸½÷¸¸ í¾ ¢ˆÅ ‚œ¸¨¸]¸Ä›¸ ¬¸º£®¸¸ ˆÅ¸½ ¢›¸«œÏž¸ ˆÅ£½Š¸¸ ¡¸¢™
¡¸˜¸½«’ ‚¸¿ˆÅ”õ½ „œ¸¥¸¤š¸ ‚˜¸¨¸¸ ¬¸¿ž¸¨¸ ›¸íì íÿ, ¢]¸¬¸¬¸½ 10.5.2 Developments
¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä ¢í÷¸¸¢š¸ˆÅ¸£ú ˆ½Å ¢¥¸‡ ¤¸íº÷¸ ¬¸ú¢Ÿ¸÷¸
‚˜¸¨¸¸ œÏ™¸÷¸¸ ˆ½Å ¢¥¸‡ ‚›¸¸˜¸Ä®¸Ÿ¸ ¤¸›¸ ]¸¸‡Š¸ú A l NHB collaborated with a Title Guarantee
Company with global experience to conduct a
10.5.2 ‹¸’›¸¸ÇÅŸ¸ (¢¨¸ˆÅ¸¬¸) feasibility study of Title Indemnity in India.
£¸«’ïú¡¸ ‚¸¨¸¸¬¸ ¤¸ÿˆÅ ›¸½ ž¸¸£÷¸ Ÿ¸½¿ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä ˆÅ¸ ‡ˆÅ
¬¸¿ž¸¸¨¡¸÷¸¸ ‚š¡¸¡¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¨¸¾¢©¨¸ˆÅ ‚›¸ºž¸¨¸ £‰¸›¸½ ¨¸¸¥¸ú ‡ˆÅ l The broad purpose of the study was to assess the
Indian mortgage industry and determine the gaps
’¸ƒ¢’¥¸ (¬¨¸÷¨¸¸¢š¸ˆÅ¸£) Š¸¸£¿’ú ˆ¿Åœ¸›¸ú ˆ½Å ¬¸¸˜¸ ¬¸í¡¸¸½Š¸ ¢ˆÅ¡¸¸ A vis-à-vis global practices and recommend steps to
introduce appropriately similar services in India.
‚š¡¸¡¸›¸ ˆÅ¸ ¨¡¸¸œ¸ˆÅ „Ó½©¡¸ ž¸¸£÷¸ú¡¸ ¤¸¿š¸ˆÅ „Ô¸¸½Š¸ ˆÅ¸ Ÿ¸»¥¡¸¸¿ˆÅ›¸ The study comprised the legal, technical,
economic and regulatory issues pertinent to title
ˆÅ£›¸¸ ‚¸¾£ ‚¿÷¸£¸¥¸ ‚˜¸¸Ä÷¸Ã ¨¸¾¢©¨¸ˆÅ ¨¡¸¨¸í¸£ ‚¨¸š¸¸¢£÷¸ ˆÅ£›¸¸ ÷¸˜¸¸ guarantee/insurance/indemnity product in India.
ž¸¸£÷¸ Ÿ¸½¿ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ Š¸¸£¿’ú/¤¸úŸ¸¸/®¸¢÷¸œ¸»¢÷¸Ä „÷œ¸¸™ ˆ½Å „œ¸¡¸ºÆ÷¸ The primary research was completed through

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¢¨¸¢š¸ˆÅ/÷¸ˆÅ›¸úˆÅú/‚¸¢˜¸ÄˆÅ ÷¸˜¸¸ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ Ÿ¸ºÓ½ ©¸¸¢Ÿ¸¥¸ íÿ œÏ¸˜¸¢Ÿ¸ˆÅ structured interviews with decision makers of
‚›¸º¬¸¿š¸¸›¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ‚¸¾£ ‚›¸º¬¸»¢\¸÷¸ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ Housing Finance Companies and Scheduled
Commercial Banks (public, private and foreign
(¬¸¸¨¸Ä]¸¢›¸ˆÅ, ¢›¸]¸ú ‡¨¸¿ ¢¨¸™½©¸ú ¤¸ÿˆÅ¸½¿) ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ¸½¿ ˆ½Å ¢›¸µ¸Ä¡¸ ¥¸½›¸½ banks), Regulators.
¨¸¸¥¸¸½¿ ˆ½Å ¬¸¸˜¸ [¸¿\¸¸Š¸÷¸ ¬¸¸®¸¸÷ˆÅ¸£ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ œ¸»£¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸ A
‚š¡¸¡¸›¸ ˆ½Å œÏŸ¸º‰¸ ¢›¸«ˆÅ«¸Ä íÿ À- l The salient findings of the Study are:

Legal
¢¨¸¢š¸ˆÅ
1. ¤¸¿š¸ˆÅ œÏ¨¸÷¸Ä›¸ ˆ½Å ÇÅŸ¸ Ÿ¸½¿ (‚¸¿÷¸¢£ˆÅ ‚˜¸¨¸¸ ¤¸¸íḠ踸½÷¸Š¸÷¸) †µ¸™¸÷¸¸ 1. The due diligence process followed by lender
׸£¸ œ¸¸¥¸›¸ ˆÅú Š¸ƒÄ ¬¸Ÿ¡¸ˆÅ ÷¸÷œ¸£÷¸¸ œÏ¢ÇÅ¡¸¸ ¨¡¸¸œ¸ˆÅ í¾ ‚¸¾£ †µ¸ (internal or outsourced) in the course of mortgage
‚¸¨¸½™›¸ ˆÅú œÏ¢ÇÅ¡¸¸ ‚¸Š¸½ ¤¸[õ¸›¸½ Ÿ¸½¿ œÏ˜¸Ÿ¸ Š¸¢÷¸¢¨¸¢š¸ ˆ½Å ³œ¸ Ÿ¸½¿ Ÿ¸¸Ÿ¸¥¸¸½¿ ˆ½Å origination is comprehensive and done in 100% of
100% Ÿ¸½¿ ˆÅú Š¸ƒÄ A cases as the first activity in loan application
processing.
2. ž¸»¢Ÿ¸ ‚˜¸¨¸¸ ¬¸¿œ¸¢î¸ ˆ½Å ¢¥¸‡ ¢¨¸¢š¸ˆÅ ¬¸Ÿ¡¸ˆÅ ÷¸÷œ¸£÷¸¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡
2. The procedure followed to effect legal due diligence
œ¸¸¥¸›¸ ˆÅú Š¸ƒÄ ¢ÇÅ¡¸¸¢¨¸¢š¸ ¬¸¸Ÿ¸¸›¡¸÷¸¡¸¸ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ ˆ½Å ‚›¸º¬¸¸£ £¸]¡¸¸½¿
for land or property is generally standard across
Ÿ¸½¿ Ÿ¸¸›¸ˆÅ í¾ À
states in terms of:
ˆÅ. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆ½Å ‚¢š¸ŠÏíµ¸ ˆ½Å ¢¨¸¢š¸Ÿ¸¸›¡¸ ÷¸£úˆ½Å A a. Valid modes of acquisition of title
‰¸. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅ¸½ ¢¨¸¢š¸Ÿ¸¸›¡¸ ˆÅ£›¸½ ¨¸¸¥¸½ ™¬÷¸¸¨¸½{¸¸½¿ ˆÅú œÏˆ¼Å¢÷¸ A b. Nature of documents validating the title
c. Variances are by way of encumbrances
Š¸. ¢¨¸¢ž¸››¸÷¸¸‡¿ £¸]¡¸/¬˜¸¸›¸ú¡¸ ‚¢ž¸ˆÅ£µ¸¸½¿ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ ž¸¸£ ˆ½Å
pertaining to state /local agencies
{¸¢£‡ íÿ A
3. †µ¸™¸÷¸¸ ׸£¸ ]¸¸£ú ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ¢£œ¸¸½’Ä ¢ˆÅ¬¸ú ž¸ú œÏ™î¸ ¬¸¿œ¸¢î¸ ˆ½Å 3. The title report issued by the lender records the
¢¥¸‡ íˆÅ ˆÅú ¢¬˜¸¢÷¸ Æ¡¸¸ ¬œ¸«’ ‚¸¾£ ¢¨¸œ¸µ¸›¸ú¡¸ ‚˜¸¨¸¸ ž¸¸£ŠÏ¬÷¸ í¾, opinion on the state of title for a given property
œ¸£ £¸¡¸ ™½÷¸ú í¾ A whether clear and marketable or encumbered.

4. ¡¸¢™ (¬œ¸«’ ‚¸¾£ ¢¨¸œ¸µ¸›¸ú¡¸ £¸¡¸ ˆ½Å ¤¸¸¨¸]¸»™) ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ Ÿ¸½¿ ‡½¬¸¸ 4. There is no recourse to financial compensation for
ˆÅ¸½ƒÄ ™¸½«¸ œ¸¸¡¸¸ ]¸¸÷¸¸ í¾, ¢]¸¬¸ˆÅ¸ œ¸¢£µ¸¸Ÿ¸ ‚¸¢¬÷¸ ˆÅú í¸¢›¸ ‚¸¾£ lender or borrower in case a defect in title is
¨¡¸¢÷¸ÇÅŸ¸ í¸½, ÷¸¤¸ ‡½¬¸ú ¢¬˜¸¢÷¸ Ÿ¸½¿ †µ¸™¸÷¸¸ ‚˜¸¨¸¸ „š¸¸£ˆÅ÷¸¸Ä ˆ½Å ¢¥¸‡ discovered (despite a clear and marketable opinion)
¢¨¸î¸ú¡¸ Ÿ¸º‚¸¨¸{¸½ ˆÅ¸ ˆÅ¸½ƒÄ ¬¸í¸£¸ ›¸íì í¾ A resulting in loss of asset and default.

¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ
1. ƒ¬¸ ¬¸Ÿ¸¡¸ ž¸¸£÷¸ Ÿ¸½¿ ¤¸úŸ¸¸ ‚˜¸¨¸¸ ¤¸ÿˆÅˆÅ¸£ú ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ׸£¸
‚›¸ºŸ¸¸½¢™÷¸ˆÅ¸½ƒÄ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ®¸¢÷¸œ¸»¢÷¸Ä „÷œ¸¸™ ›¸íì í¾ A
2. Ÿ¸ú¢”¡¸¸ ˆÅú ¢£œ¸¸½’Ä ˆ½Å ‚›¸º¬¸¸£, ž¸¸£÷¸ú¡¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ®¸½°¸ ˆ½Å ¢ˆÅ¬¸ú
¬¸¸š¸¸£µ¸ ¤¸úŸ¸¸ˆÅ÷¸¸Ä ›¸½ ‚¸ƒÄ‚¸£”ú‡ ˆ½Å ¬¸¸˜¸ ¢ˆÅ¬¸ú ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ¤¸úŸ¸¸
„÷œ¸¸™ ˆ½Å ¢¥¸‡ ¨¸¸™ í¸¥¸ íú Ÿ¸½¿ œÏ¬÷¸º÷¸ ¢ˆÅ¡¸¸ Š¸¡¸¸ ˜¸¸ A ¢¨¸©¨¸¸¬¸ ¢ˆÅ¡¸¸
]¸¸÷¸¸ í¾ ¢ˆÅ ¨¸í ‚¸¨¸½™›¸ „÷œ¸¸™ ˆÅú ÷¸ˆÅ›¸úˆÅú œÏˆ¼Å¢÷¸ ˆÅú ¤¸½í÷¸£
¬¸Ÿ¸^¸™¸£ú ˆ½Å ‚ž¸¸¨¸ Ÿ¸½¿ £Ó ˆÅ£ ¢™¡¸¸ Š¸¡¸¸ ˜¸¸A
3. ‚¿÷¸£¸Ä«’ïú¡¸ :i ¬¸½, ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä ‚¢š¸ˆÅ¸¿©¸ :i Ÿ¸½¿ ‡ˆÅ
¤¸úŸ¸¸ „÷œ¸¸™ ˆ½Å ³œ¸ Ÿ¸½¿ œÏ™¸›¸ ˆÅú ]¸¸÷¸ú í¾, ¡¸Ô¸¢œ¸, ˆÅ¢÷¸œ¸¡¸ „™¸í£µ¸
„¬¸ˆ½Å ‡ˆÅ Š¸¸£¿’ú ˆ½Å :i Ÿ¸½¿ œÏ™¸›¸ ¢ˆÅ‡ ]¸¸›¸½ ˆ½Å íÿ A
Regulatory
1. There is currently no title indemnity product
approved by the insurance or banking regulator in
India.
2. According to media reports an Indian public sector
general insurer had recently filed for a title
insurance product with the IRDA. It is believed that
the application has been rejected for want of a
better understanding of the technical nature of the
product.
3. Internationally the title indemnity is provided
largely as an insurance product although there are

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 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ
4. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅ¸ ¤¸úŸ¸¸ ÷¸ˆÅ›¸úˆÅú ³œ¸ Ÿ¸½¿ ‚›¡¸ ¬¸¸Ÿ¸¸›¡¸ ¤¸úŸ¸¸ ¬¸½ ¢¤¸¥ˆºÅ¥¸
¢ž¸››¸ í¾ ‚¸¾£ ƒ¬¸ ¬¸Ÿ¸¡¸ ¬¸¸š¸¸£µ¸ ¤¸úŸ¸¸ ¬¸º£®¸¸ œÏ™¸÷¸¸‚¸½¿ ˆÅ¸½ „¬¸½ ž¸¸£÷¸ Ÿ¸½¿
‚˜¸¨¸¸ ‚¿÷¸£¸Ä«’ïú¡¸ ³œ¸ ¬¸½ œÏ™¸›¸ ˆÅ£›¸½ ˆÅ¸ ˆÅ¸½ƒÄ ‚›¸ºž¸¨¸ ›¸íì í¾A
5. ¡¸í ¬¸Ÿ¸^¸¸ ]¸¸÷¸¸ í¾ ¢ˆÅ ž¸¸£÷¸ Ÿ¸½¿ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅ¸ ¤¸úŸ¸¸ ¢¨¸ˆÅ¢¬¸÷¸ ˆÅ£›¸½
ˆ½Å ¢¥¸‡ ¢¨¸©¸½«¸±¸÷¸¸ ‚¿÷¸£¸Ä«’ïú¡¸ ³œ¸ ¬¸½ ‚›¸ºž¸¨¸ú ¢¨¸™½©¸ú œÏ™¸÷¸¸‚¸½¿ ˆ½Å
‚¢›¸¨¸¸¡¸Ä :i ¬¸½ ‚¸›¸½ ˆÅú {¸³£÷¸ í¾ A
¨¡¸¸œ¸¸£
1. ƒ¬¸ ¬¸Ÿ¸¡¸, ž¸¸£÷¸ Ÿ¸½¿ ‚¢š¸ˆÅ¸¿©¸ ‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸ ‚¸¾£ ¤¸ÿˆÅ ¬¸÷¸ˆÄÅ
¢¨¸¢š¸ˆÅ ¬¸Ÿ¡¸ˆÅ ÷¸÷œ¸£÷¸¸ ˆ½Å Ÿ¸¸š¡¸Ÿ¸ ¬¸½ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆ½Å ]¸¸½¢‰¸Ÿ¸ ˆÅ¸
¬¸¸Ÿ¸›¸¸ ˆÅ£ £í½ íÿ ÷¸˜¸¸¢œ¸, ¨¸½ ¬¸Ÿ¸^¸÷¸½ íÿ ¢ˆÅ ‡ˆÅ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ®¸¢÷¸œ¸»¢÷¸Ä
„÷œ¸¸™ ˆÅú „œ¸¥¸¤š¸÷¸¸ ˆÅ¸ ¬¨¸¸Š¸÷¸ ¢ˆÅ¡¸¸ ]¸¸‡Š¸¸ A
2. „š¸¸£™¸÷¸¸ ƒ¬¸ˆÅú ©¸ú‹Ï ¬¨¸úˆ¼Å¢÷¸ ™½‰¸›¸½ ˆÅú ‚¸©¸¸ ˆÅ£÷¸½ íÿ, ¡¸¢™ ‡½¬¸¸
ˆÅ¸½ƒÄ „÷œ¸¸™ „›¸ ®¸½°¸¸½¿/¬¸¿œ¸¢î¸¡¸¸½¿ Ÿ¸½¿ ¨¡¸¸œ¸¸£ ¤¸[õ¸›¸½ Ÿ¸½¿ „›¸ˆÅú ¬¸í¸¡¸÷¸¸
ˆÅ£÷¸¸ í¾, ]¸¸½ ¬¸¸Ÿ¸¸›¡¸÷¸¡¸¸ „›¸ˆ½Å ]¸¸½¢‰¸Ÿ¸ ¢™©¸¸-¢›¸™½Ä©¸¸½¿ ˆ½Å ‚š¸ú›¸ ›¸íì
“í£ ¬¸ˆÅ÷¸¸ í¾ ¢]¸¬¸¬¸½ ¬¸Ÿ¤¸¸½š¸›¸ ¡¸¸½Š¡¸ ¤¸¸{¸¸£ ˆÅ¸½ ¤¸[¸¡¸¸ ]¸¸ ¬¸ˆ½Å
Ÿ¸º‰¡¸ œÏ©›¸ í¾ - Æ¡¸¸ „›¸ ®¸½°¸¸½¿ ˆ½Å ¢¥¸‡ œÏ¢÷¸¢›¸¢š¸ ÷¸¾¡¸¸£ ˆÅ£›¸¸ ¬¸¿ž¸¨¸ í¾
¢]¸›¸Ÿ¸½¿ œÏ¥¸½‰¸›¸ ˆÅ¸ Ÿ¸¸›¸ˆÅ ¬÷¸£ú¡¸ ›¸íì í¾ A
3. ¬¸Ÿ¸^¸¸ ]¸¸÷¸¸ í¾ ¢ˆÅ †µ¸™¸÷¸¸ †µ¸ œ¸£ ¥¸¸Š¸÷¸ ˆÅú œ¸£÷¸½¿ ]¸¸½”õ›¸½ ¬¸½
¬¸£¸½ˆÅ¸£ £‰¸÷¸½ íÿ ƒ¬¸ ¬¸Ÿ¸¡¸ †µ¸ œÏ¢ÇÅ¡¸¸Š¸÷¸ ©¸º¥ˆÅ ¬¸½ ‚¥¸Š¸, ¡¸í¸¿
‚¢Š›¸ ¤¸úŸ¸¸, ¨¸¾ˆÅ¢¥œ¸ˆÅ ]¸ú¨¸›¸ ¤¸úŸ¸¸ ‚¸¾£ ‚¸Š¸¸Ÿ¸ú ¤¸¿š¸ˆÅ Š¸¸£¿’ú í¾
4. ¬¨¸úˆ¼Å¢÷¸ ˆÅú ˆº¿Å]¸ú ¨¡¸¸¢œ÷¸ ˆ½Å ž¸ú÷¸£ ‚œ¸¨¸]¸Ä›¸¸½¿, ¨¡¸¨¸¬˜¸¸œ¸›¸
¢ÇÅ¡¸¸¢¨¸¢š¸¡¸¸½¿ ˆÅú ¬¸£¥¸÷¸¸ ‚¸¾£ œÏú¢Ÿ¸¡¸Ÿ¸ œÏž¸¸£ ˆÅú œÏˆ¼Å¢÷¸ í¸½Š¸ú A
5. ¬¸ž¸¸¢¨¸÷¸ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú ®¸¢÷¸œ¸»¢÷¸Ä ˆ½Å ¢¥¸‡ ž¸¸£÷¸ú¡¸ ¤¸¸{¸¸£ ˆÅú
‚›¸ºŸ¸¸¢›¸÷¸ ¬¸¿ž¸¸¨¡¸÷¸¸ 3400 ˆÅ£¸½”õ ˆÅú ª½µ¸ú Ÿ¸½¿ í¸½›¸½ ˆÅú ‚¸©¸¸ ˆÅú
]¸¸÷¸ú í¾ A
÷¸ˆÅ›¸úˆÅú
1. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ¤¸úŸ¸¸ ¬¨¸¸¢Ÿ¸¡¸¸½¿ ‚¸¾£ †µ¸™¸÷¸¸‚¸½¿ ˆ½Å ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆ½Å
Ÿ¸ºˆÅ¸¤¸¥¸½ ¢ˆÅ¬¸ú ž¸ú ™¸¨¸½ ˆ½Å ¢¥¸‡ ¬¸¿£®¸µ¸ ™½÷¸¸ í¾ ‚¸¾£ ƒ¬¸ˆ½Å ‚¢÷¸¢£Æ÷¸
¡¸í Š¸¸£¿’ú ™½÷¸¸ í¾ ¢ˆÅ ¤¸¿š¸ˆÅ ¢¨¸¢š¸Ÿ¸¸›¡¸, œÏ¨¸÷¸Ä›¸ú¡¸ ‚¸¾£ œÏ˜¸Ÿ¸
œÏ¸˜¸¢Ÿ¸ˆÅ÷¸¸ í¾ ¤¸úŸ¸¸ ¬¸º£®¸¸ Ÿ¸½¿ ¬¸ž¸ú ¢¨¸¢š¸ˆÅ ©¸º¥ˆÅ¸½¿ ¬¸¢í÷¸ ¬¸Ÿ¸¬÷¸
¢¨¸î¸ú¡¸ í¸¢›¸¡¸¸¿ ¤¸\¸¸¨¸ ˆ½Å ¢¥¸‡ ©¸¸¢Ÿ¸¥¸ íÿ A
2. ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ ˆ½Å ¤¸¸{¸¸£¸½¿ Ÿ¸½¿ ™¸½ œÏˆÅ¸£ ˆÅ¸ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ¤¸úŸ¸¸ í¾ À
146
Report on Trend and Progress of Housing in India, 2008
certain examples of the same being provided as a
guarantee.
4. Title insurance is technically quite different from
other general insurance and current general
insurance providers in India have no experience in
providing the same in India or internationally.
5. It is felt that to develop title insurance in India the
expertise necessarily needs to come from
internationally experienced foreign providers.
Business
1. Majority of the housing finance institutions and
banks in India are presently coping with title risk
through careful legal due diligence. However, they
feel that availability of a title indemnity product will
be welcome.
2. Lenders expect to see quick acceptance if such a
product helps them develop business in areas
/properties that may not normally qualify under its
risk guidelines, thereby increasing the addressable
market.
3. Lenders are understandably concerned about
adding layers of cost to the loan. Currently apart
from a loan processing fee there is fire insurance,
optional life insurance and the upcoming mortgage
guarantee.
4. The key to acceptance will be nature of exclusions
within the coverage, ease of settlement procedures
and premium charge.
5. The approximate market potential for title
indemnity in the Indian market is expected to be in
the range of Rs 3400 crores.
Technical
1. Title insurance protects owners and lenders against
any claims against the title, and in addition
guarantees that the mortgage is valid, enforceable
and of first priority. The coverage includes all
financial losses including all legal fees for defense.
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

†µ¸™¸÷¸¸ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ¤¸úŸ¸¸ (†µ¸ œ¸¸Á¢¥¸¬¸ú) ‚¸¾£ ¬¨¸¸Ÿ¸ú 2. In the US market, there are two types of title
¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ¤¸úŸ¸¸ À- insurance: Lenders title insurance (Loan Policy) and
Owner’s title insurance.
ˆÅ. ‚¢š¸ˆÅ¸¿©¸ †µ¸™¸÷¸¸ „¬¸ ¬¸Ÿ¸¡¸ †µ¸ œ¸¸Á¢¥¸¬¸ú \¸¸í÷¸½ íÿ ]¸¤¸ ¨¸½ ˆÅ¸½ƒÄ
†µ¸ ]¸¸£ú ˆÅ£÷¸½ íÿ ¡¸í ¬¸¿œ¸¢î¸ Ÿ¸½¿ †µ¸™¸÷¸¸ ˆÅ¸ ¢í÷¸ ¬¸¿£¢®¸÷¸ £‰¸÷¸¸
a. Most lenders require a Loan Policy when they
í¾ ¢ˆÅ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆ½Å ¬¸¸˜¸ ˆÅ¸½ƒÄ ¬¸Ÿ¸¬¡¸¸ ›¸íì „“›¸ú \¸¸¢í‡ A
issue a loan. It protects the lender’s interests in
‰¸. ¬¨¸¸Ÿ¸ú ˆ½Å ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅ¸ ¤¸úŸ¸¸ ‚¸Ÿ¸÷¸¸¾£ œ¸£ ž¸» ¬¸¿œ¸™¸ ˆÅú ‰¸£ú™ ˆÅú the property should a problem with the title
£¸¢©¸ Ÿ¸½¿ ]¸¸£ú ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ¡¸í ¤¸¿™ í¸½›¸½ ˆ½Å ¬¸Ÿ¸¡¸ œ¸£ ‡ˆÅ¤¸¸£Š¸ú arise.
œ¸€ú¬¸ ˆ½Å ¢¥¸‡ ‰¸£ú™¸ ]¸¸÷¸¸ í¾ ‚¸¾£ ÷¸¤¸ ÷¸ˆÅ £í÷¸¸ í¾, ]¸¤¸ ÷¸ˆÅ ¢ˆÅ b. Owner’s title insurance is usually issued in the
‰¸£ú™¸£ ‚˜¸¨¸¸ „¬¸ˆ½Å ¨¸¸¢£¬¸¸½¿ ˆÅ¸ ¢í÷¸ ¬¸¿œ¸¢÷÷¸ Ÿ¸½¿ ¤¸›¸¸ £í÷¸¸ í¾ A amount of the real estate purchase. It is
purchased for a one-time fee at closing and
lasts as long as the buyer or heirs have an
10.5.3 ¬¸úŸ¸¸‡¿ interest in the property.
1. ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ (íˆÅ) œ¸¸Á¢¥¸¬¸ú ˆ½Å ‚š¸ú›¸ ¬¸º£®¸¸ ˆÅú Š¸º¿]¸¸ƒ©¸ ƒ÷¸›¸ú í¾
¢ˆÅ ¤¸úŸ¸¸ˆ¼Å÷¸ ]¸¸›¸ˆÅ¸£ú ˆÅ¸œ¸€ú í™ ÷¸ˆÅ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸¥¸½‰¸ („œ¸- 10.5.3 Limitations
œ¸¿]¸ú¡¸ˆÅ ˆ½Å ˆÅ¸¡¸¸Ä¥¸¡¸¸½¿) ÷¸ˆÅ ¤¸¿š¸ú í¸½÷¸ú í¾ ƒ¬¸¢¥¸‡ ‡½¬¸ú ˆÅ¸½ƒÄ ¤¸¸÷¸ ]¸¸½
1. The scope of the cover under the title policy is
¬¸¿œ¸¢î¸ ˆ½Å ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ œ¸£ œÏ¢÷¸ˆ»Å¥¸ œÏž¸¸¨¸ ”¸¥¸÷¸ú í¾, ]¸¸½ ¬¸¸¨¸Ä]¸¢›¸ˆÅ that the insured information is to a large degree
‚¢ž¸¥¸½‰¸ ¬¸½ Ÿ¸¸¥¸»Ÿ¸ ›¸íì í¸½÷¸ú í¾, ¡¸í ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ œ¸¸Á¢¥¸¬¸ú Ÿ¸½¿ tied to the public records (sub registrar offices).
©¸¸¢Ÿ¸¥¸ í¸½ ž¸ú ¬¸ˆÅ÷¸ú í¾ ‚˜¸¨¸¸ ›¸íì ž¸ú „™¸í£µ¸¸˜¸Ä, ¢¨¸¢š¸ˆÅ ‚¸™½©¸¸½¿ Therefore, something that adversely affects the
׸£¸ ¢›¸¢Ÿ¸Ä÷¸ ‚›¸¸¢Ÿ¸¢¥¸¢‰¸÷¸ œ¸¿¢Æ÷¸¡¸¸¿, ¢ˆÅ¬¸ú ‡½¬¸½ ¨¡¸¢Æ÷¸ ˆ½Å title to the property which was not discoverable
from the public records, may or may not be
‚›¸¸¢Ÿ¸¢¥¸¢‰¸÷¸ ‚¢š¸ˆÅ¸£, ¢]¸¬¸›¸½ ¢ˆÅ¬¸ú ¬¸¿œ¸¢î¸ ˆ½Å ‚¢š¸ŠÏíµ¸ Ÿ¸½¿ covered under the title policy. For example,
¢¨¸î¸ú¡¸ ³œ¸ ¬¸½ ‚¿©¸™¸›¸ ¢ˆÅ¡¸¸ í¾ A unrecorded liens created by legal judgments,
2. ¤¸úŸ¸¸ ¬¸º£®¸¸ ¬¸½ ‚¢š¸ˆÅ¸¿©¸ ‚œ¸¨¸]¸Ä›¸ ¢›¸Ÿ›¸¢¥¸¢‰¸÷¸ íÿ À- unrecorded rights of a person who has
contributed financially to the acquisition of a
i. œÏ¢÷¸¢«“÷¸ ž¸» ¬¸¿œ¸¢î¸ ˆ½Å ‚¢š¸ˆÅ¸£ A
property.
ii. ¢™¨¸¸¥¸¸ ‚˜¸¨¸¸ ¢™¨¸¸¢¥¸¡¸¸œ¸›¸, ¡¸¢™ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸¥¸½‰¸ ¬¸½ „]¸¸Š¸£
›¸íì í¸½÷¸¸ í¾ A 2. The most significant exclusions from cover are:
i. Rights of eminent domain
iii. ¤¸úŸ¸¸ˆ¼Å÷¸ ¨¡¸¢Æ÷¸ ˆÅ¸ ˆÅ¸½ƒÄ ˆ¼Å÷¡¸-¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ˆÅú \¸º›¸¸¾÷¸ú ˆÅ¸½ ]¸¸›¸÷¸¸
ii. Insolvency or bankruptcy if not discoverable
í¾ ‚¸¾£ ¤¸úŸ¸¸ˆÅ÷¸¸Ä ˆÅ¸½ ‚¢š¸¬¸»¢\¸÷¸ ˆÅ£›¸½ Ÿ¸½¿ ¢¨¸œ¸€¥¸ £í÷¸¸ í¾ ¢›¸Ÿ¸¸Äµ¸ from the public records.
ˆÅ£÷¸½ ¬¸Ÿ¸¡¸ œ¸¡¸Ä¨¸¸£µ¸ú¡¸ ‚œ¸½®¸¸‚¸½¿ ˆÅ¸ œ¸¸¥¸›¸ ›¸íì ¢ˆÅ¡¸¸ ]¸¸›¸¸ A iii. An act of the insured knows of a challenge to
3. ‡ˆÅ ‡½¬¸¸ ®¸½°¸ ]¸¸½ œÏ¸¡¸À ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸¥¸½‰¸ ÷¸ˆÅ ¬¸ú¢Ÿ¸÷¸ ›¸íì í¸½÷¸¸ title and fails to notify the insurer, non-
adherence to environmental requirements while
í¾, ¡¸í š¸¸½‰¸¸š¸”õú ‚˜¸¨¸¸ ]¸¸¥¸¬¸¸{¸ú í¾ š¸¸½‰¸¸š¸”õú ‚˜¸¨¸¸ ]¸¸¥¸¬¸¸{¸ú
constructing.
ˆÅ¸ œ¸÷¸¸ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸¥¸½‰¸ ¬¸½ ¥¸Š¸ ž¸ú ¬¸ˆÅ÷¸¸ í¾ ‚˜¸¨¸¸ ›¸íì ž¸ú 3. One area that is often not limited to the public
¢ˆÅ›÷¸º ƒ¬¸ˆÅú ¬¸¸˜¸ÄˆÅ÷¸¸ ƒ÷¸›¸ú í¸½÷¸ú í¾ ¢ˆÅ ¬¨¸÷¨¸¸¢š¸ˆÅ¸£, ¤¸úŸ¸¸ „Ô¸¸½Š¸ records is fraud or forgery. Fraud or forgery may or
¨¸«¸¸½¿Ä ¬¸½ ‚¤¸ ÷¸ˆÅ ¬¸¿¡¸ºÆ÷¸ £¸]¡¸ Ÿ¸½¿ ¡¸í ]¸¸½¢‰¸Ÿ¸ ©¸¸¢Ÿ¸¥¸ í¾ ¢ˆÅ Æ¡¸¸ may not be discoverable from the public records
¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¢ž¸¥¸½‰¸ Ÿ¸½¿ ƒ¬¸ˆÅ¸ œ¸÷¸¸ ¥¸Š¸ ¬¸ˆÅ÷¸¸ í¾ ‚˜¸¨¸¸ ›¸íì A but it is of such significance that the title insurance
industry has for many years now, in the United
10.5.4 ¬¨¸÷¨¸¸¢š¸ˆÅ¸£ ¤¸úŸ¸¸ ¬¸º£®¸¸ ˆÅ¸ Ÿ¸»¥¡¸›¸ - ƒ¬¸ ¥¸¸Š¸÷¸ í½÷¸º ¡¸í¸¿ States; covered that risk whether or not
discoverable from the public records.
œ¸£ ™¸½ ÷¸÷¨¸ íÿ À-
1. ¢¨¸¢š¸ˆÅ ¬¸Ÿ¡¸ˆÅ ÷¸÷œ¸£÷¸¸ ˆÅú ¥¸¸Š¸÷¸ À ¨¸¸¢µ¸¢]¡¸ˆÅŠ¸÷¸ ¥¸½›¸™½›¸ 10.5.4 Pricing of Title cover:
Ÿ¸½¿ ¤¸úŸ¸¸ˆÅ÷¸¸Ä ŠÏ¸íˆÅ ˆÅú ¨¸÷¸ÄŸ¸¸›¸ ¨¸¾š¸ œ¸€Ÿ¸Ä ˆÅ¸ „œ¸¡¸¸½Š¸ ˆÅ£½Š¸¸ ‚¸¾£ There are two elements to this cost:
‚œ¸½®¸¸‚¸½¿ ˆÅ¸½ œ¸»£ú ˆÅ£½Š¸¸ , ]¸¤¸¢ˆÅ œ¸£¨¸÷¸úÄ ¬¸Ÿ¡¸ˆÅ ÷¸÷œ¸£÷¸¸ 1. Cost of legal due diligence: In commercial
¤¸£÷¸÷¸¸ í¾ ¢]¸¬¸¬¸½ ¢ˆÅ ¢¨¸¢š¸ˆÅ ¥¸¸Š¸÷¸½¿ ™ºŠ¸›¸ú ›¸ í¸½¿ ]¸¸‡¿ ¬¸¿¡¸ºÆ÷¸ transactions, the insurer will utilize the customer’s
£¸]¡¸ ‚Ÿ¸½¢£ˆÅ¸ Ÿ¸½¿ ‰¸º™£¸ ¥¸½›¸™½›¸ ˆ½Å ¢¥¸‡, œ¸€¬’Ä ‚Ÿ¸½¢£ˆÅ›¸ existing legal firm and satisfy requirements when
the latter conducts due diligence, so that there is no

147
 Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

ˆÅ¸Áœ¸¸½Ä£½©¸›¸ ¬¸¸£½½ ™½©¸ Ÿ¸½¿ ¤¸íº÷¸ ¬¸½ ¬¸¿œ¸¢î¸ œ¸¿]¸úˆÅ£µ¸ ˆ½Å ˆÅ¸¡¸¸Ä¥¸¡¸¸½¿ ¬¸½ double incurring of legal costs. For retail
踸½÷¸Š¸÷¸ ‚¸¿ˆÅ”õ¸½¿ ¬¸½ ‚¸¿÷¸¢£ˆÅ ³œ¸ ¬¸½ ¢›¸¢Ÿ¸Ä÷¸ ¨¡¸¸œ¸ˆÅ ‚¸¿ˆÅ”õ¸ transactions in the USA, First American Corporation
‚¸š¸¸£ œ¸£ ˆÅ¸¡¸Ä ˆÅ£÷¸¸ í¾ ž¸¸£÷¸ Ÿ¸½¿, ƒ¬¸ œÏˆÅ¸£ ˆÅ¸ ‚¸¿ˆÅ”õ¸ works on a comprehensive database created in-
‚¸š¸¸£ ÷¸½{¸ú ¬¸½ ¤¸›¸¸¡¸¸ ]¸¸›¸½ ˆÅú {¸³£÷¸ í¸½Š¸ú ‚¸¾£ ¡¸í 踸½÷¸¸½¿ house by sourcing data from numerous property
(„œ¸ œ¸¿]¸ú¡¸ˆÅ ˆ½Å ˆÅ¸¡¸¸Ä¥¸¡¸¸½¿, ›¡¸¸¡¸¸¥¸¡¸¸½¿ ƒ÷¡¸¸¢™) 踸½÷¸¸½¿ ¬¸½ registration offices across the country. In India,
‚¸¿ˆÅ”õ¸½¿ ˆÅú Š¸ºµ¸¨¸î¸¸ ‚¸¾£ „œ¸¥¸¤š¸÷¸¸ œ¸£ ¢›¸ž¸Ä£ ˆÅ£½Š¸¸ ÷¸˜¸¸¢œ¸, such a database will need to be built progressively
™½©¸ Ÿ¸½¿ „÷œ¸¸™ ©¸º³ ˆÅ£›¸½ ˆÅú ¡¸í ˆÅ¸½ƒÄ ‚¸¨¸©¡¸ˆÅ ©¸÷¸Ä ›¸íì í¾ A and will depend on the availability and quality of
data from sources (sub-registrar offices, courts
2. ]¸¸½¢‰¸Ÿ¸ ‚¸š¸¸¢£÷¸ œÏú¢Ÿ¸¡¸Ÿ¸ À ¡¸í ž¸¸£÷¸ú¡¸ ¤¸¸{¸¸£ ˆÅ¸½ ¬¸Ÿ¸¢œ¸Ä÷¸ íˆÅ
etc.). However, this is not a necessary condition for
í¸Ÿ¸ú™¸£ú œÏˆÅ¸¡¸Ä ׸£¸ í¬÷¸¸¿÷¸£µ¸ ‚¸¾£ †µ¸ ž¸¸£ œ¸£ œÏ¸œ÷¸ starting the product in the country.
]¸¸›¸ˆÅ¸£ú ˆ½Å ‚¸š¸¸£ œ¸£ ¢¨¸¢›¸¢©\¸÷¸ ¢ˆÅ¡¸¸ ]¸¸÷¸¸ í¾ ¡¸Ô¸¢œ¸, 2. Risk based premium: This is decided on the basis
¨¸¸¬÷¸¢¨¸ˆÅ Ÿ¸»¥¡¸›¸ œ¸£ ¢’œœ¸µ¸ú ˆÅ£›¸¸ ¤¸íº÷¸ ]¸¥™ú í¸½½Š¸¸ of information obtained on the conveyance and
¨¸¸¢µ¸¢]¡¸ˆÅ ¥¸½›¸™½›¸¸½¿ œ¸£ ¨¸÷¸ÄŸ¸¸›¸ ¢¨¸\¸¸£ ¡¸í í¾ ¢ˆÅ œÏú¢Ÿ¸¡¸Ÿ¸ ¬¸¿œ¸¢î¸ encumbrances by the title underwriting function
ˆ½Å Ÿ¸»¥¡¸ ˆ½Å 60 ¬¸½ ¥¸½ˆÅ£ 80 ‚¸š¸¸£ ¢¤¸¿™º‚¸½¿ ÷¸ˆÅ (‡ˆÅ ¤¸¸£ ˆÅ¸ dedicated to the Indian market. Although, it is early
œÏú¢Ÿ¸¡¸Ÿ¸) í¸½ ¬¸ˆÅ÷¸¸ í¾ A to comment on actual pricing, the current view on
commercial transactions is that the premium may
be in the range of 60 to 80 basis points of the value
10.6 ž¸¸¨¸ú ´¢«’ˆÅ¸½µ¸
of the property (one time premium).

ƒ¬¸ ™½©¸ Ÿ¸½¿ ‚¸¨¸¸¬¸ ¢¨¸î¸ ®¸½°¸ ‡ˆÅ ¥¸¿¤¸ú ¡¸¸°¸¸ ˆÅ£ˆ½Å ‚¸¡¸¸ í¾ ]¸¸½ ‡ˆÅ ‡½¬¸¸ ®¸½°¸ 10.6 Future Outlook
í¾, ¢]¸¬¸ œ¸£ ‚›¸¸¾œ¸\¸¸¢£ˆÅ ¬¸¿¬˜¸¸›¸¸½¿ ˆÅ¸ œÏž¸º÷¨¸ ˜¸¸, ]¸í¸¿ ¬¸½ ‚¸¾œ¸\¸¸¢£ˆÅ ‚¸¾£
œÏ¢÷¸¡¸¸½Š¸ú ®¸½°¸ ˆ½Å ³œ¸ Ÿ¸½¿ ˆÅ¸œ¸€ú ‚¸Š¸½ ‚¸ Š¸¡¸¸ í¾ ¢]¸¬¸ ®¸½°¸ œ¸£ Ÿ¸º‰¡¸ ³œ¸ ¬¸½ The entry of large number of banks, favourable macro-
‚¸¨¸¸¬¸ ¢¨¸î¸ ¬¸¿¬˜¸¸›¸ Ž¸‡ íº‡ ˜¸½ ‚¸¾£ ‚›¸¸¾œ¸\¸¸¢£ˆÅ 踸½÷¸¸½¿ ¬¸½ 1990 ˆ½Å economic conditions, government initiatives and
™©¸ˆÅ ˆ½Å ¤¸¸™ ˆ½Å ¨¸«¸¸½¿Ä ˆ½Å ™¸¾£¸›¸ ¤¸íº÷¸ ¬¸½ ¤¸ÿˆÅ¸½¿ ›¸½ ‚œ¸›¸ú œ¸¾“ ]¸Ÿ¸¸ ¥¸ú ˜¸ú, „¬¸ regulatory reforms have contributed to the exponential
®¸½°¸ Ÿ¸½¿ ¬¸£ˆÅ¸£ ›¸½ ¤¸¸™ Ÿ¸½¿ „™¸£úˆÅ£µ¸ ˆÅú œÏ¢ÇÅ¡¸¸ œÏ¸£Ÿž¸ ˆÅ£ ™ú ˜¸ú ‚¸¨¸¸¬¸ growth of the housing finance market in the last few
¢¨¸î¸ ˆ½Å ®¸½°¸¸½¿ Ÿ¸½¿ ¤¸ÿˆÅ¸½¿ ˆ½Å œÏ¨¸½©¸ ¬¸½ œÏ¢÷¸¡¸¸½¢Š¸÷¸¸ Š¸í›¸ í¸½ Š¸ƒÄ ˜¸ú ‚¸¾£ ƒ¬¸ˆ½Å years. During the last five years, the housing finance
œ¸¢£µ¸¸Ÿ¸¬¨¸³œ¸ Ž¸½’½-Ÿ¸¸½’½ ¨¡¸¸œ¸¸£ú Š¸¸ö¡¸¤¸ í¸½›¸½ ¥¸Š¸½ ˜¸½ market in the country has grown at a robust CAGR of
¤¸ÿˆÅ¸½¿ ˆ½Å œÏ¨¸½©¸ ‚›¸ºˆ»Å¥¸ ¬˜¸»¥¸ ‚¸¢˜¸ÄˆÅ ¢¬˜¸¢÷¸¡¸¸½¿ œ¸£ ¬¸£ˆÅ¸£ ˆ½Å œÏ¸½÷¬¸¸í›¸¸½¿ around 30 per cent. The housing loan outstanding
‚¸¾£ ¢¨¸¢›¸¡¸¸Ÿ¸ˆÅ ¬¸ºš¸¸£¸½¿ ˆ½Å ˆÅ¸£µ¸ ¢œ¸Ž¥¸½ ˆºÅŽ½ˆÅ ¨¸«¸¸½¿Ä ˆ½Å ™¸¾£¸›¸, ™½©¸ ˆÅ¸ increased from Rs 494 billion in 2000-01 to Rs 3886
‚¸¨¸¸¬¸ ¢¨¸î¸ ¤¸¸{¸¸£ ¥¸Š¸ž¸Š¸ 30 œÏ¢÷¸©¸÷¸ ˆÅú ž¸¸£ú \¸ÇŨ¸¢š¸Ä÷¸ ¨¸¸¢«¸ÄˆÅ ¨¸¼¢Ö billion in 2007-08, while the housing loan disbursals
™£ ¬¸½ ¤¸[õ¸ í¾ ¤¸ˆÅ¸¡¸¸ ‚¸¨¸¸¬¸ †µ¸ 2000-01 Ÿ¸½¿ 494 ¢¤¸¢¥¸¡¸›¸ ¬¸½ 2007- increased from Rs 182 billion to Rs 1288 billion.
08 Ÿ¸½¿ ¤¸[õˆÅ£ 3886 ¢¤¸¢¥¸¡¸›¸ í¸½ Š¸¡¸¸ ˜¸¸, ]¸¤¸¢ˆÅ ‚¸¨¸¸¬¸ †µ¸ ¬¸¿¢¨¸÷¸£µ¸ The housing finance market has been rather buoyant in
182 ¢¤¸¢¥¸¡¸›¸ ¬¸½ ¤¸[õˆÅ£ 1288 ¢¤¸¢¥¸¡¸›¸ œ¸£ œ¸íº¿\¸ Š¸¡¸¸ ˜¸¸ A the last decade with the share of public and private
housing finance companies declining and that of the
‚¸¨¸¸¬¸ ¢¨¸î¸ ¤¸¸{¸¸£ ¬¸¸¨¸Ä]¸¢›¸ˆÅ ‚¸¾£ ¢›¸]¸ú ‚¸¨¸¸¬¸ ¢¨¸î¸ ˆ¿Åœ¸¢›¸¡¸¸½¿ ˆ½Å ©¸½¡¸£¸½¿ commercial banks increasing. This is mainly due to the
Ÿ¸½¿ ¢Š¸£¸¨¸’ ˆ½Å ¬¸¸˜¸ ‚¸¾£ ¨¸¸¢µ¸¢]¡¸ˆÅ ¤¸ÿˆÅ¸½¿ ˆ½Å ©¸½¡¸£¸½¿ Ÿ¸½¿ ¨¸¼¢Ö í¸½›¸½ ¬¸½ ¢œ¸Ž¥¸½
fact that the banks have access to low cost deposits,
™©¸ˆÅ Ÿ¸½¿ ‚œ¸½®¸¸ˆ¼Å÷¸ œÏœ¸€º¥¥¸ ¤¸›¸¸ £í¸ ¡¸í Ÿ¸º‰¡¸ ³œ¸ ¬¸½ ƒ¬¸ ÷¸˜¡¸ ¢ˆÅ ¤¸ÿˆÅ¸½¿ ›¸½
increased coverage across the country and support in
‚¥œ¸ ¥¸¸Š¸÷¸ ]¸Ÿ¸¸£¸¢©¸¡¸¸¿ ¬¨¸úˆÅ¸£ ˆÅì, ¨¡¸¸¢œ÷¸ ¬¸¸£½ ™½©¸ Ÿ¸½¿ ¤¸[õú ‚¸¾£
terms of capital infusion from the government. Though,
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149
Report on Trend and Progress of Housing in India, 2008
a resilient banking system, will provide excellent growth
prospects to housing industry in future.
The housing shortage at the beginning of the 11th Five
Year Plan has been estimated at 24.71 million units. To
overcome this housing shortage a total funding of Rs.
600,000 crore is required. This is a significant capital
requirement and cannot be raised by the Central and
State governments, alone. Hence, active private sector
participation is very much essential for achieving this
goal. There is an increasing need for collaboration
among the various stakeholders involved viz. the
Central, and State Governments and Local Bodies and
the Private Sector to not only ensure the all-round
development of the sector but also achieve the
Government’s vision of “Affordable Housing for All”.
To enable the housing finance market to function more
efficiently, there is a need for the adoption of uniform
practices by the housing finance industry relating to
matters like appraisal and documentation, prepayment
of housing loans, conversion of fixed rate loans into
floating rate loans etc. A greater degree of transparency
in dealings with the borrowers will enable them to
exercise informed choices about products and lending
institutions.
The need for promoting securitization in the housing
finance markets and the creation of a Mortgage Credit
Guarantee Company is imperative. Such an organization
would generate a greater volume of mortgage lending in
the Indian market, lower down payment requirements,
broaden the eligibility for mortgages and extend
mortgage repayment periods. These initiatives will
facilitate capital market development by promoting
secondary market which will boost home ownership. To
address the issue of rising incidence of frauds in the
housing finance market, the SARFAESI Act introduced a
system of central registry of housing mortgages.
Introduction of such a registration system would be
conducive to easy credit disbursals resulting in
competition amongst lenders and better interest options
for the borrowers.
To conclude, housing finance in India has done
remarkably well particularly over the last few years. The
market needs to be deepened and widened. Gaps are
required to be filled in. Potential for growth is well
recognized. Innovations, orientation towards the un-
served and under-served segments are called for. The
task is both important and urgent.
Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

LIST OF ABBREVIATIONS

ACHFS Apex Co-operative Housing Finance Societies

AML Anti Money Laundering

ARDB Agriculture and Rural Development Bank

ASCI Administrative Staff College of India

BOB Bank of Baroda

BPL Below Poverty Line

CAGR Compound Annual Growth Rate

CFT Combating Financing of Terrorism

DRDA District Rural Development Authority

EWS Economically Weaker Sections

FATF Financial Action Task Force

FDI Foreign Direct Investment

GDP Gross Domestic Product

GJRHRS Golden Jubilee Rural Housing Refinance Scheme

GOI Government of India

HDFC Housing Development Finance Corporation

HFC Housing Finance Company

HUDCO Housing & Urban Development corporation

IAY Indira Awas Yojna

IHSDP Integrated Housing and Slum Development Programme

JRY Jawahar Rojgar Yojna

KYC Know Your Customer

LIG Low Income Group

NABARD National Bank for Agriculture and Rural Development

NBO National Building Organisation

150
Hkkjr essa vkokl dh izo`fRr ,oa izxfr ij o"kZ 2008 dh fjiksVZ Report on Trend and Progress of Housing in India, 2008

NHB National Housing Bank

NHB RESIDEX NHB Real Estate Price Index

NHHP National Housing and Habitat Policy

NPA Non-Performing Asset

PLI Primary Lending Institutions

PSB Public Sector Bank

RBI Reserve Bank of India

REMF Real Estate Mutual Funds

RLEGP Rural Landless Employment Guarantee Programme

RMBS Residential Mortgage Backed Securitisation

RML Reverse Mortgage Loan

SBI State Bank of India

SCB Scheduled Commercial Bank

SCRA Securities Contract (Regulation) Act, 1956

SEZ Special Economic Zone

SPV Special Purpose Vehicle

TAG Technical Adisory Group

UT Union Teritory

VAMBAY Valmiki Ambedkar Awas Yojna

151