Dr.N.G.P.

INSTITUTE OF TECHNOLOGY
Coimbatore – 641 048
(An Autonomous Institution)

DEPARTMENT OF MANAGEMENT STUDIES

MBA / R2023 / 2022 – 2024 Batch / AY: 2023 – 2024 / Semester - III
II – MBA (Section – A)

MANOJ.S
REG NO 710722631057
 HOUSING FINANCE

• A set of all financial arrangement that are made avaliable

by housing companies ( HFCS ) to meet the requirements of
housing is called ‘ housing finance “
Models of housing projects
The popular models of land and housing development are as follows

• Town planning

• Development authority projects

• Housing boards projects

• Cooperative society projects

• Private real estate developers

• Public private partnership

• Slum board projects

• Government programmes
TOWN PLAN SCHEMES
Town plan scheme are found in many parts of the country . the town planning department prepares
schemes for improvement area , which includes land owned by various land owner

Development authority projects

• They acquired land from central acquisition act (CLDAA) of 1894 and then develope the land .

• They developed various project like housing project , industrial estates, markects parks , shopping
complexes
Cooperative society projects
• This is an popular method of land and housing developement where people come together and form a cooperative socity .

• In someplace ,development authority allot the land while in others , the socity arrange for the land by construction housing
on its own

Private real estate developers

• The real estate developer purchases land from the landowner After getting all the required permission from various
government agencies, the real estate developer does the booking of the houses and collects advance ney from the end-users.

• The construction is the carried out and the property is handed over to the end-users
Public-private Partnership

• These are parmerships berween the private sector and the government. Such partnerships between the government organizations
like the development authorities and private business enterprises such as real estate developers are encouraged.

• The ultanate objective is better management access to capital, speedier delivery and better quality

Slum Boards Projects

• Thiey are built on the lines of Housing Bourds. They are state level organizations, which carry out slum clearanceimprovements,
with emphasis on resettlement, on-site improvements or in-site upgradation.

• Slum board created under the Slum Acts are empowered to declare areas as slums and carry out improvement activities
Government programmes
• The Government of India has launched various schemes for promoting housing,
such an hiding Awas Yojana Under these schemes, fixed amounts of financial
assistance are given to a selected group of people so that they can build shelter
for themselves
HOUSING FINANCE IN INDIA - MAJOR ISSUE

• Lack of clear tittle

• High stamp duty

• Obsolete rental law

• Inadequate building codes and standards

• Inadequate development and planning

• Inadequate infrasture
Lack of clear tittle
• The ownership is unclear and hence, the land is off the market, thereby fland.

• This problem could be attributed to poor record keeping and complicated processe

High stamp duty

• The one of transferring land, stamp duty and registration charges payable are
prohibitively high.

• This dissuades pmple from seeking housing development and financing.

Moreover, the procedure followed is also not transparent
Inadequate building codes and standards
• Although there are several building guidelines and standards in various cities and
states, neither the housing developers follow them and nor do the authorities
implement them.

• The system needs to be made more transparent and direct, so that there is no room
for ambiguity and confusion
Obsolete rental law
• obsolete tenancy and rental control laws keep a large part of the urhan properties off
the market.

• The rental must be revised to protect the owner and the property from the tenant
Inadequate development and planning
• The city or state authorities must use professionals to plan and execute all
development plans for cities andtawns, with future development in mind.

• This must be done without any political compulsions.

• The plans must be prepared in advance and executed without any exceptions and
all regulations must be strictly enforced.
Housing finance growth factor
• Budgetary support
• Distinguishing services
• Access to resources
Budgetary support

• Tax benefits, a low interest rate regime and high salary levels among
certain sections are chiefly responsible for fueling fast growth in the
housing financial services sector.

• Tax benefits for housing finance contributes to housing development.

For this purpose, RBI maintains a soft interest rate regime.

• The bank rate of interest is constantly being slashed so that it acts as a

stimulant for housing demand.
Distinguishing Service

• Companies are trying to distinguish themselves through a difference in service standards.

• At the moment, there seems to be little to choose from among the top housing companies when it comes to service.

Access to resources

• LIC occupies a prime position in housing finance, largely because of its access to huge financial resources.

• This has helped the LIC in larger disbursements.

• The access to resources may ensure that bigger companies will dominate the market and check the growth of others.

• In the same manner, the innovative instrument, asset securitization, is also likely to bring about perceptible change in
housing finance.
THANK YOU