An Assessment of the Indian Housing Finance System: Crucial Perspective

Abstract

House is a centre and domestic device for mankind's moral and substance development ever since the dawn of civilisation. Housing is one of the most important that we human beings need. Adequate housing is essential for human survival with dignity. There are many things that we would find difficult, if not impossible to do without good-quality housing. Housing shortage is a universal phenomenon. It is more acute in developing countries. The housing dimension in India has been changing in recent years. India has initiated so many housing reform that has taken many forms and manifestations characterized by the reduction in social allocation, cutbacks in public funding and promotion of a real estate culture in close partnership between the state and private actors. Mortgage financing markets can play an important role in stimulating affordable housing markets and improving housing quality in many countries. Unfortunately, they are often less developed in India. This lack of development often translates into lower homeownership rates or lower housing quality. Most stem from the central dilemma that the resources are always too limited and housing development heavily depend on the financial institutions such as banks, credit corporations and development banks for the supply of finance to meet their daily financial needs. Against this backdrop this paper will assess basic nuances of Indian financing system. This paper will also provide key issues, future outlook and institutional performance.