Housing Finance In India

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FUTURE OF HOUSING FINANCE IN INDIA: Increasing attention has been placed in recent years on developing a housing finance system in India. It is essential to enhance significantly the level of savings by the household sector. It is because housing investment has strong macroeconomic linkages and is directly related to internal efficiency and productivity of cities. Indian Housing Finance Trends Indian Housing finance companies accounts for almost two-fifths of the retail home loan market in the country. The home loan portfolios of mortgage lenders have grown at a faster rate than that of commercial banks in the last few years. The growth rate in urban areas is clearly above the rural areas which signifies the urbanization phase, India is…show more content…
The players spread across various areas such as government organizations, banks, HFC’s, co-operative societies and many others. Big players operating in the industry are HDFC, LIC housing finance, SBI home finance, ICICI and Dewan Housing. HDFC Group which comprises of HDFC and HDCF bank along with SBI are the leading players in the home loan market in India. The rapid pace of development of various housing activities in the country has led to the positive growth of housing finance market in India. The first company established during 1970s to offer finance to different urban infrastructural and housing activities was HUDCO and the first private sector organization to be established for financing housing activities was HDFC in the year 1977. Since then, this sector has been growing considerably and is expected to grow further in the forth coming years. The top players in the housing finance sector in India are: Housing Development Finance Corporation Limited: HDFC is a leading provider of Housing Finance in India. This company has 24.13% share in housing finance sector.They have financed 5 million cumulative units and has Gross loans of Rs.2.5 trillion.The best service offered by them is the customized housing finance to meet the need of every…show more content…
They offer a wide range of housing finance and have a strong presence in the housing finance sector. ICICI Home Finance Company Limited: The market share of ICICI Home Finance is 13.10% and they offer various types of home loans to customers with a tenure of maximum 20 years. The interest rate of the home loan taken by their customers is linked to the ICICI Bank Floating interest Rate. IDBI Home Finance Limited: IDBI Home Finance Limited started its operation in the year 2000 and in such short span of time the company has grown as a leading player in the housing finance market in India. They offers different types of housing finance like loan against home, Plot loans, home loans for NRIs, home extension/improvement loan etc. PNB Housing Finance Limited: PNB Housing Finance Limited is a 26 years old public sector housing finance company (HFC), which is headquartered in New Delhi having branches in major cities across India. PNB Housing Finance Limited is a subsidiary of Punjab National Bank and is registered with state owned bank and regulation authority of India - National Housing Bank (NHB). The company provides housing loans & Loan against Property. Dewan Housing Finance Corporation

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