Housing Finance Case Study

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Basics of Financial Management


Submitted By:
Pushpender Singh B-05
Rohit Guleria B-16
Pravin Sawant B-41
Naman Sharma B-66
Nitin Patil B-67

MBA 2015-2017

Submitted to: Prof. Arti. Chandani

Symbiosis Institute Of Management Studies(SIMS)

Contribution of each member:

Naman Sharma : Introduction of housing finance
Nitin patil : Problems
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In India, the demand for home loans has increased extensively in the last decade. Housing is a primary human need next in importance to food & clothing. This takes precedence over other household expenditure and routine needs. Housing, however, is a major expenditure and cannot be funded out of a family’s normal monthly income or savings. The prospective house owner must look for a loan substantial in size and so structured that he can repay it over a longer period of time, in many cases almost ones entire working life. Loan is offered to a borrower to purchase or build a new house on the basis of his/her eligibility and the banks’ lending rules. Government gave encouragement for housing finance subsidiaries by offering number of tax concessions to individuals and with such overall encouragement given to this sector, a number of players entered in housing finance. One of the most important benefits of taking a home loan is the interest rate that is allowed on the home loan. Fixed and variable interest rate options are also available for home loans. Many financiers offers home improvement loans at the same interest rate as they offer the home loans. All over the world, housing is regarded as means of long term wealth accumulation and financial security. Good housing is, thus, a pre-requisite for human development and welfare. It is essential for the smooth operation of a modern society.…show more content…
Housing finance is a long-term investment, which requires a great amount of funds. One of the main problems of housing finance sector of India is non-availability of long-term capital for investment. Traditionally, the funds for the housing sector have come from the individuals themselves by way of their own savings or from the financial institutions that are primarily engaged in the intermediation process of channelizing funds 154 from the savers to the borrowers. However, the funds so mobilized through the formal sector financial institutions remain much lower than what is required to tackle the problems of housing finance in

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