HOUSING FINANCE

HOUSING FINANCE INSTITUTIONS

• THE IMPLEMENTATION OF HUMAN SETTLEMENTS
STRATEGIES AND POLICIES DEPEND ON BOTH THE
AMOUNT AND THE NATURE OF THE RESOURCES
AVAILABLE AND EFFICIENT INSTITUIONAL
ARRANGEMENTS.

• THE INSTITUIONAL AND FINANCIAL STRUCTURE OF

HOUSING IN THE COUNTRY IS CENTRALISED LIKE THE
GENERAL FINANCIAL SYSTEM AND IS ORIENTED
TOWARDS THE UTILISATION OF RESOURCES THROUGH
GOVERNMENT AGENCIES AND COOPERATIVES .

• THE RESOURCES COME MAINLY FROM THE CENTRAL

GOVERNMENT, THE STATES AND NATIONALISED
FINANCIAL INSTITUIONS SUCH AS THE LIFE INSURANCE
CORPORATION OF INDIA (LIC), THE GENERAL INSURANCE
CORPORATION OF INDIA (GIC) AND THE BANKS.
 HOUSING FINANCE INSTITUTIONS

• THE OTHER MAJOR SOURCE OF FINANCE IS THE PROVIDENT FUND SYSTEM.

• THE EMPLOYERS COLLECT MAINDATORY SAVINGS FROM THE FORMAL

SECTOR EMPLOYEES AND ARE OBLIGED TO TAKE OUT SECURITIES AND
THEREBY HELP GOVERNMENT DEVELOPMENT PROGRAMMES.

• THERE ARE A NUMBER OF PRIVATE AND JOINT PUBLIC-PRIVATE HOUSING

FINANCE INSTITUTIONS.

THE HIGH LEVEL GROUP SET-UP BY THE GOVERNMENT OF INDIA IN

JUNE, 1986, CLASSIFIED THE EXISTING FINANCIAL INSTITUIONS INTO
TWO BROAD SEGMENTS VIZ.

1. FORMAL &
2. INFORMAL
 HOUSING FINANCE INSTITUTIONS

THE FORMAL SECTOR INCLUDES –

• BUDGETARY ALLOCATIONS OF CENTRAL AND STATE

GOVERNMENTS,

• FINANCIAL INSTITUTIONS LIKE LIC, GIC , UTI ,

COMMERCIAL BANKS AND PROVIDENT FUNDS.

• SPECIALISED HOUSING FINANCE INSTITIONS VIZ. HUDCO,

APEX AND PRIMARY COOPERATIVE HOUSING FINANCE
SOCIETIES, AND HOUSING FINANCE COMPANIES.
HOUSING FINANCE INSTITUTIONS
THE INFORMAL SECTOR INCLUDES –

• HOUSEHOLDS THEMSELVES AND PUBLIC AND PRIVATE

SECTOR EMPLOYERS PROVIDING HOUSING LOANS TO
THEIR EMPLOYEES.

• THE SOURCES OF FUNDS FOR SPECIALISED HOUSING

FINANCE INSTITUTIONS ARE FROM EQUITY , FREE
RESERVES, DEPOSITS AND LOANS FROM PUBLIC
THROUGH BONDS ETC. , AS WELL AS BORROWING FROM
ANY ONE OR MORE OF THE FINANCIAL INSTITUTIONS.

• THE INTEGRATION OF HOUSING FINANCE SYSTEM WITH

THE NATIONAL FINANCIAL SYSTEM HAS NOW BECOME
IMPERATIVE.
 CENTRAL AND STATE GOVERNMENTS

• BOTH CENTRAL AND STATE GOVERNMENTS PROVIDE FUNDS UNDER

BUDGETARY PROCESS IN THE FORM OF LOANS AND SUBSIDIES FOR
UNDERTAKING RURAL AND URBAN HOUSING PROGRAMMES.

• THE CENTRAL GOVERNMENT HAS INTRODUCED VARIOUS SOCIAL HOUSING

SCHEMES AND PROVIDE FINANCIAL ASSISTANCE TO THE STATE
GOVERNMENTS /UNION TERRITORIES FOR THE IMPLEMENTATION OF THE
SCHEMES.

• THE STATE GOVERNMENTS ARE THE ACTUAL IMPLEMENTING AGENCIES.

• SOME STATES HAVE ALSO FORMULATED THEIR OWN SCHEMES FOR

PROVIDING HOUSES TO THE POOR, EXTENDING HOUSE BUILDING ADVANCES
TO THEIR EMPLOYEES, PROVIDING FUNDS FOR CONSTRUCTION OF RENTAL
HOUSES FOR ITS EMPLOYEES AND LOANS TO STATE HOUSING BOARDS AND
DEVELOPMENT AUTHORITIES FOR DIFFERENT SOCIAL HOUSING SCHEMES.
 FINANCIAL INSTITUTIONS
1. LIC
• THE LIC AS WELL AS GIC SUPPORT HOUSING ACTIVITY BOTH
DIRECTLY AND INDIRECTLY.

• LIC IS STATUTORILY REQUIRE TO INVEST 25 PERCENT OF THE NET

ACCRETION TO ITS FUNDS IN SOCIALLY ORIENTED SCHEMES LIKE
HOUSING, WATER SUPPLY, SEWERAGE, ELECTRIFICATION ETC.

• BESIDES SUBSCRIBING TO BONDS/DEBENTURES FLOATED BY

HUDCO AND STATE HOUSING BOARD/DEVELOPEMENT
AUTHORITIES , LIC PROVIDES LOANS TO STATE GOVERNMENTS
FOR THEIR RURAL HOUSING PROGRAMMES AND TO STATE APEX
COOPERATIVE HOUSING FINANCE SOCIETIES ON BEHALF OF
THEIR FEDERATING PRIMARY SOCIETIES AND TO PUBLIC SECTOR
COMPANIES FOR CONSTRUCTION OF STAFF QUARTERS.

• LIC ALSO GRANTS LOAN DIRECT TO INDIVIDUALS.

 FINANCIAL INSTITUTIONS
2. GIC
• GIC IS REQUIRED TO INVEST 35 PER CENT OF THEIR ANNUAL
ACCRETIONS TO SOCIALLY ORIENTED SECTORS INCLUDING
HOUSING FOR EWS.

• GIC SUPPORTS HOUSING ALMOST EXCLUSIVELY INDIRECTLY

BY SUBSCRIBING TO BONDS/DEBENTURES FLOATED BY
HUDCO AND STATE HOUSING BOARD/DEVELOPEMENT
AUTHORITIES.

• GIC HAS ALSO SETUP A SUBSIDIARY HOUSING FINANCE

COMPANY CALLED GIC GRITH VITTA LIMITED IN 1990 FOR
LENDING DIRECTLY TO INDIVIDUALS.

3. UTI
 UTI’S SUPPORT TO HOUSING IS INDIRECT BY WAY OF
SUBSCRIPTIONS TO BONDS/DEBENTURES OF STATE/NATIONAL
LEVEL AGENCIES. UTI HAS STARTED RECENTLY PATICIPATING
IN THE EQUITY OF HOUSING FINANCE COMPANIES.
 FINANCIAL INSTITUTIONS
4. COMMERCIAL BANKS
• COMMERCIAL BANKS CAN EXTEND TERM LOANS TO STATE HOUSING BOARDS.
BANKS ARE ALSO ALLOWED TO EXTEND FINANCE TO PUBLIC AGENCIES FOR
ACQUISITION AND DEVELOPMENT OF LAND.

• BANKS CAN ALSO EXTEND CREDIT TO PRIVATE BUILDERS ON COMMERCIAL

TERMS. THEY ARE NOW REQUIRED TO ALLOCATE PER CENT OF THE
INCREMENTAL DEPOSITS IN THE PREVIOUS YEAR TOWARDS LENDING TO THE
HOUSING SECTOR.

• SOME OF THE MAJOR NATIONALISED BANKS HAVE FORMED HOUSING

FINANCE SUBSIDIARIES AND IT EXPECTED THAT THEIR ROLE WILL BE MAINLY
TO CATER TO THE NEEDS OF THE INDIVIDUAL IN MIDDLE INCOME HIGH
GROUPS.

• THE NATIONAL HOUSING BANK HAS INITIATED MANY STEPS TO ENSURE

INVOLVMENTS OF BANKS IN HOUSING FINANCE.
 FINANCIAL INSTITUTIONS
5. COOPERATIVE BANKS
• THE COOPERATIVE BANKS EXTEND FINANCIAL ASSISTANCE TO
INDIVIDUALS BELONGING TO EWS, LIG, MIG AND COOPERATIVE
OR GROUP HOUSING SOCIETIES, HOUSING BOARDS ETC.

• THE COOPERATIVE BANKS CAN ALSO LEND TO OWNERS OF

HOUSES FOR EXTENTIONS AND UPGRADATIONS INCLUDING
MAJOR REPAIRS.

6. PROVIDENT FUNDS
• THERE ARE 3 MAJOR PROVIDENT FUND SCHEMES IN OPERATION –
GENERAL PROVIDENT FUND (GPF), PUBLIC PROVIDENT FUND (PPF) ,
AND THE EMPLOYEES PROVIDENT FUND (EPF).

• GRANT OF ADVANCE FOR CONSTRUCTION OR PRCHASE OF A

HOUSE FROM GPF IS PERRMITTED.
SPECIALISED HOUSING FINANCE INSTITUTIONS
1. HUDCO
• HUDCO IS A FULLY OWNED ORGANIZATION OF THE
GOVERNMENT OF INDIA.

• HUDCO WAS INSTITUTED WITH THE OBJECTIVE OF

PROVIDING LONG-TERM FINANCE FOR CONSTRUCTION OF
HOUSES, UNDERTAKING URBAN DEVELOPMENT
PROGRAMS AND INFRASTRUCTURE FACILITIES.

• WORKING UNDER THE ADMINISTRATIVE CONTROL OF THE

MINISTRY OF HOUSING AND URBAN POVERTY
ALLEVIATION, THE ORGANIZATION IS CHARGED WITH
BUILDING AFFORDABLE HOUSING AND CARRYING OUT
URBAN DEVELOPMENT.

• HUDCO STANDS OUT IN THE BURGEONING HOUSING

FINANCE INDUSTRY FOR ITS FOCUS ON THE SOCIAL
ASPECT OF HOUSING AND UTILITY INFRASTRUCTURE
PROVISION.
 SPECIALISED HOUSING FINANCE INSTITUTIONS

1. HUDCO
• HUDCO HAS PLAYED A STELLAR ROLE IN THE IMPLEMENTATION OF NATIONAL
HOUSING POLICY.

• IT HAS BEEN ENTRUSTED WITH THE IMPLEMENTATION OF THE PRIORITY

PROGRAMMES OF THE MINISTRY LIKE LOW COST SANITATION, SLUM UP
GRADATION, STAFF HOUSING, NIGHT SHELTER FOR FOOTPATH DWELLERS,
SHELTER UP GRADATION UNDER NEHRU ROZGAR YOJANA, RURAL HOUSING
UNDER MINIMUM NEEDS PROGRAMME.

• ALTHOUGH COMMERCIAL BANKS AND HOUSING FINANCE COMPANIES ARE

DOING BRISK BUSINESS IN THE SWELLING HOUSING FINANCE SECTOR, THE
HOUSING NEEDS OF THE POOR AND LOW INCOME GROUPS HAVE REMAINED
UNADDRESSED.

• IN SUCH A SCENARIO, HUDCO'S ROLE HAS BECOME EVEN MORE SIGNIFICANT.

SPECIALISED HOUSING FINANCE INSTITUTIONS
1. HUDCO
• IN SPITE OF ITS COMMERCIAL ORIENTATION, HUDCO HAS
ADOPTED A POLICY OF PREFERENTIAL ALLOCATION OF
RESOURCES TO THE SOCIALLY DISADVANTAGED.

• IT CONTINUES TO EMPHASIZE ON SECTORS, WHICH ARE MORE

SOCIALLY RELEVANT RATHER THAN ONLY ON COMMERCIALLY
VIABLE AND PROFITABLE SECTORS. HUDCO'S SOCIAL
ORIENTATION OF IS EVIDENT FROM THE FACT THAT ABOUT 92
PERCENT OF THE 150.93 LAKH HOUSES FINANCED BY HUDCO ARE
FOR THE BENEFIT OF ECONOMICALLY WEAKER SECTIONS AND
LOW INCOME CATEGORIES.

• APART FROM THE CORPORATE OFFICE AT DELHI, HUDCO

FUNCTIONS UNDER A ZONAL OFFICE, A RESEARCH & TRAINING
INSTITUTE, 20 REGIONAL OFFICES, 34 RETAIL FINANCE UNITS AND
9 DEVELOPMENT OFFICES.
SPECIALISED HOUSING FINANCE INSTITUTIONS
1. HUDCO
• IN THE FACE OF GROWING COMPETITION, HUDCO HAS
ADOPTED INNOVATION IN ITS LENDING OPERATIONS.
HUDCO NIWAS, WHICH WAS LAUNCHED IN 1999, IS AN
EXTREMELY POPULAR HOUSING LOAN SCHEME.

• UNDER HUDCO NIWAS, INDIVIDUAL HOUSING LOANS ARE

GIVEN DIRECTLY TO THE BORROWERS INSTEAD OF THE
ESTABLISHED PRACTICE OF DISBURSING LOANS THROUGH
THE STATE GOVERNMENTS AND THEIR HOUSING
AGENCIES.

• MOREOVER, HUDCO HAS MOVED THE GOVERNMENT

SEEKING PERMISSION TO ENTER THE BANKING AND
INSURANCE SECTORS.

• HUDCO HAS BEEN CONFERRED AWARD FOR BEING NO. 1

INSTITUTION IN CONSTRUCTION OF DWELLING UNITS FOR
POOR SECTIONS, BY ‘BUSINESS SPHERE’ MAGAZINE.
 SPECIALISED HOUSING FINANCE INSTITUTIONS

1. HUDCO
OBJECTIVES OF HUDCO
• TO EXTEND LONG TERM FINANCE FOR CONSTRUCTION OF RESIDENTIAL
COMPLEXES OR UNDERTAKE HOUSING AND URBAN DEVELOPMENT
PROGRAMS IN THE COUNTRY.

• TO FINANCE OR UNDERTAKE BUILDING OF NEW OR SATELLITE TOWN, EITHER

WHOLLY OR PARTLY.

• TO SUBSCRIBE THE DEBENTURES AND BONDS TO BE ISSUED BY THE STATE

HOUSING (AND OR URBAN DEVELOPMENT) BOARDS, IMPROVEMENT TRUSTS,
DEVELOPMENT AUTHORITIES ETC., SPECIFICALLY FOR THE PURPOSE OF
FINANCING HOUSING AND URBAN DEVELOPMENT PROGRAMS.

• TO FUND OR TAKE ON THE SETTING UP OF INDUSTRIAL ENTERPRISES OF

BUILDING MATERIAL.
SPECIALISED HOUSING FINANCE INSTITUTIONS
1. HUDCO
OBJECTIVES OF HUDCO

• TO MANAGE THE MONEY RECEIVED FROM THE

GOVERNMENT OF INDIA AND OTHER SOURCES AS GRANTS
OR OTHERWISE, FOR THE PURPOSES OF FINANCING OR
UNDERTAKING HOUSING AND URBAN DEVELOPMENT
PROGRAMS IN THE COUNTRY.

• TO PROMOTE, ESTABLISH, ASSIST, COLLABORATE AND

PROVIDE CONSULTANCY SERVICES FOR THE PROJECTS OF
DESIGNING AND PLANNING OF WORKS RELATING TO
HOUSING AND URBAN DEVELOPMENT PROGRAMS IN INDIA
AND ABROAD.
.
SPECIALISED HOUSING FINANCE INSTITUTIONS
2. STATE APEX COOPERATIVE HOUSING
FINANCE SOCIETIES

• THE ONLY MASS-SCALE INNOVATIVE CREDIT SYSTEM IN

INDIA WHICH NOT ONLY PROVIDES CREDIT BUT ALSO
ENCOURAGES COLLECTIVE/SELF-HELP CONSTRUCTION
ACTIVITIES WITH PEOPLE’S PARTICIPATION IS THE
COOPERATIVE MOVEMENT.

• ONE OF THE IMPORTANT FEATURES OF THE COOPERATIVE

STRUCTURE IS ITS ABILITY TO REACH LOWER INCOME
GROUPS, AND RECOVER LOANS.

• COOPERATIVES CAN BE UTILISED TO INTEGRATE THE

FORMAL ANF INFORMAL SECTORS AND IMPROVING
ACCESS OF POOR TO THE FORMAL SEGMENT OF HOUSING
FINANCE IN BOTH URBAN AND RURAL AREAS.
 HOUSING FINANCE COMPANIES

HDFC

• IN 1977, THE INDUSRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA

(ICICI) TOOK THE INTIATIVE TO SET UP THE HOUSING DEVELOPMENT FINANCE
CORPORATION (HDFC)

• HDFC HAS PIONEERED LONG TERM HOUSING FINANCE SYSTEM IN THE

COUNTRY, AND HAS SANCTIONED LOANS AGGREGATING OVER RS. 3500
CRORE,AND FINANCED MORE THAN 6 LAKH FAMILIES TO HELP THEM
ACQUIRE THEIR OWN HOUSES.

• HDFC GIVES LOANS UNDER VARIOUS SCHEMES TO INDIVIDUALS,

ASSOCIATION OF INDIVIDUAL GROUPS OF CO-OPERATIVE SOCIETIES.AN
INDIVIDUAL CAN AVAIL LOAN UPTO 85% OF THE COST OF HOUSE
CONSTRUCTION SUBJECTS TO A CEILING OF RS. 25 LAKH.
 HOUSING FINANCE COMPANIES
HDFC
OF LATE,THE HDFC HAS BEEN ACTIVELY INVOLVED IN PROMOTING NEW
INSTITUTIONS FOR HOUSING FINANCE, NAMELY,

• THE GUJRAAT RURAL HOUSING FINANCE CORPORATION LTD.(WITH

SUPPORT FROM THE INTERNANTIONAL FINANCE
CORPORATION,WASHINGTON; THE AGA KHAN FUND FOR ECONOMIC
DEVELOPMENT, GENEVA AND GOVERNMENT OF GUJRAAT)

• HOUSING PROMOTION AND FINANCE CORPORATION LTD.(WITH

STATE BANK OF INDIA AND CAPITAL MARKETS)

• INFRASTRUCTUE LEASING AND FINANCIAL SERVICES LTD.(WITH

CENTER BANK OF INDIA AND UTI) & CAN-FIN-HOMES LTD.(WITH
CANARA BANK AND UTI)

• IN CASE OF LAST 3 INSTITUTIONS, HDFC HOLDS 20% SHARES.

ii. INFORMAL SECTOR
• HOUSING HAS BEEN PRIMARLY SELF-HELP ACTIVITY FOR
THE MAJORITY OF THE HOUSEHOLDS.

• INFORMAL SECTOR HAS PLAYED A SIGINIFICANT ROLE IN

EXTENDING FINANCIAL ASSISTANCE FOR HOUSING
ESPECIALLY TO THE POOR AND LOW INCOME HOUSEHOLDS.

• INFORMAL SECTOR HAS BEEN IN A POSITION TO EXPAND ITS

ACTIVITIES BECAUSE OF THE INACCESSIBILTY OF THE
FINANCIAL RESOURSES OF FORMAL SECTOR BY POOR AND
LOW INCOME GROUP PEOPLE.

• THE BULK OF POPULATION IS UNABLE TO GET ACCESS TO

FORMAL FINANCING INSTITUTIONS OWING TO VARIOUS
OPERATIONAL AND STRUCTURAL INADEQUACIES.

• INFORMAL SOURCES OF FINANCING INCLUDE OWN SAVINGS,

LOANS FROM FRIENDS, RELATIVES AND SALE OF PERSONNEL
ASSEST ETC.
 ii. INFORMAL SECTOR

• THE INFORMAL SECTOR HAS BEEN QUITE SUCCESSFUL DESPITE SEVERAL

DISADVANTAGES BECAUSE THERE ARE NO CUMBERSOME FORMALITIES TO BE
COMPLETED TO AVAIL OF ASSISTANCE FROM THEM AND SOMETIMES EVEN
CREDIT IS MADE AVAILABLE WITHOUT ANY COLLATERAL.

• AS PER NSS 44TH ROUND SURVEY, MORE THAN 80 PERCENT OF INFORMAL

SECTOR HOUSING FINANCE CAME FROM OWN SAVINGS AND SALE OF ASSEST.

• HOUSING FINANCE FROM HOUSING FINANCE INSTITUTIONS IS NOT

ACCESSIBLE TO THE URBAN POOR UNDER THE EXISTING SYSTEM.

• THE CONVENTIONAL POLICY LAYS DOWN STRICT SHELTER LOAN ELLIGIBITY

CRITERIA.

• ANOTHER DEFICIENCY IS TO PROVIDE ACCESS TO ONLY ONE OF THE SEVERAL

CREDIT NEEDS OF THE URBAN POOR, NAMLY HOUSE CONSTRUCTION.
 ii. INFORMAL SECTOR
• THE NEED OF ALERNATIVE MECHANISM SUCH AS COMPOSITE CREDIT
FOR THE URBAN POOR WHICH MEETS THE CREDIT NEEDS FOR SHELTER,
EMPLOYMENT ETC. CAN GO A LONG WAY IN MEETING THE NEEDS OF
URBAN POOR.

• ALL THESE NEEDS ARE EQUALLY IMPORTANT AND ARE INTER RELATED.

• AT PRESENT, THE SITUATION IS THAT NO FORMAL INSTITUTION IS

READY TO GIVE SHORT TERM AND SMALL LOAN TO MEET THE MUTIPLE
REQUIREMENT OF POOR

• THEREFORE, THERE IS A NEED TO HAVE SUCH AGENCIES WHICH MAY

PROVIDE COMPOSITE CREDIT AND FROM WHICH THE POOR IN
INFORMAL SECTOR CAN BORROW AS AND WHEN CREDIT IS REQUIRE.

• THE INFORMAL SECTOR ALSO INCLUDES A SUBSTANTIAL PART OF THE

CONTRIBUTION OF ORGANISED SECTOR IN THE FORM OF HOUSING
ADVANCES AND PROVISION OF STAFF QUARTERS EXTENDED BY
EMPLOYERS TO THEIR EMPLOYEES IN GOVERNMENT & ORGANISED
PUBLIC & PRIVATE ENTERPRISES.
NATIONAL HOUSING BANK (NHB)

• IN RECOGNITION OF THE NEED FOR DEVELOPING A

NETWORK OF SPECIALISED HOUSING FINANCE
INSTITUTIONS IN THE COUNTRY, THE NATIONAL HOUSING
BANK WAS ESTABLISHED IN JULY, 1988 UNDER AN ACT OF
PARLIAMENT, VIZ. , THE NATIONAL HOUSING BANK ACT,
1987, TO FUNCTION AS AN APEX BANK ON THE LINES OF
IDBI AND NABARD.

• THE ACT ENVISAGES THAT NHB WILL REMAIN A WHOLLY

OWNED SUBSIDIARY OF THE RESERVE BANK OF INDIA.

• NHB IS THE PRINCIPAL AGENCY TO PROMOTE HOUSING

FINANCE INSTITUTIONS, AT THE REGIONAL & LOCAL
LEVELS, & TO PROVIDE FINANCIAL & OTHER SUPPORT TO
SUCH INSTITUTIONS.
 NATIONAL HOUSING BANK (NHB)

• NHB HAS LAUNCHED THE HOME LOAN ACCOUNT SCHEME, IN JULY 1988, THE
NHB 9 % CAPITAL GAINS BOND SCHEME IN JULY 1990, & THE NHB VOLUNTRY
DEPOSIT SCHEME IN OCTOBER, 1991.

• NHB REFINANCES LAND DEVELOPMENT & SHELTER PROGRAMMES OF PUBLIC

& PRIVATE SECTOR AGENCIES.

• NHB ALSO SUPPORTS THE EFFORTS OF HUDCO IN CHANNELISING MAJOR

PARTS OF RESOURSES TO EWS/LIG CATEGORIES.
 RURAL HOUSING FINANCE
• IT IS RECOGNISED THAT CASH LOANS OR CREDIT ARE NOT SO RELEVANT
FOR RURAL SETTLEMENTS WHERE THE FAMILIES DEPENDS ON BIOMASS
FOR HOUSING.

• THE STATE AGENCIES AND LOCAL BODIES OPERATES DIRECT

PROGRAMMES FOR PROVIDING SERVICES & FOR HOUSING TO SC/ST & THE
RURAL POOR & THE BUDGET PROVISION IS AUGMENTED AT THE DISTRICT
LEVEL FOR THIS PURPOSE THROUGH DRDA OR RURAL HOUSING
AGENCIES.

• THE KERALA MODEL OF DECENTRALISED LENDING WITH THE

MEDITATION OF VOLUNTARY AGENCIES OR THE A.P. MODEL OF LINKING
DISTRICT ADMINISTRATION TO BENEFICIARY GROUPS ARE GOOD
EXAMPLES

• HOUSING URBAN DEVELOPMENT CORPORATION HAS BEEN A PIONEER IN

FINANCIAL RURAL HOUSING PROGRAMME SINCE 1977-78 WITH THE
OBJECTIVE OF MEETING THE BASIC NEED OF SHELTER, PROVIDING
ESSENTIAL FACILITIES PROMOTING COMMUNITY EFFORT & SELF HELP,
ENCOURAGING ADOPTION OF APPROPRIATE CONSTRUCTION
TECHNOLOGY USING LOCAL SKILLS & MATERIALS.
RURAL HOUSING BANK FINANCE
• IT HAS LAUNCHED A NUMBER OF SCHEMES VIZ.,VILLAGE
ABADI INVIRONMENTAL IMPROVEMENT SCHEME AND
HOUSING SCHEME FOR SMALL AND MARIGINAL FARMERS
FOR DEVELPOEMENT OF RURAL SETTLEMENTS.

• LIC AND GIC HAVE ALSO ENTERED INTO RURAL HOUSING

SECTOR .

• GIC LOANS AREA AVAILABLE FOR SOCIAL HOUSING

SCHEMES IN RURAL AREAS .

• IN ADDITION , VARIOUS STATE GOVERNMENTS AND UNION

TERRITORIES ADMINISTRATIONS ARE IMPLEMENTING A
NUMBER OF OTHER SCHEMES IN RURAL AREAS.

• IT WILL THUS APPEAR THAT A LARGE VARIETY OF

SCHEMES WITHOUT PROPER INTEGRATIONS ARE BEING
IMPLEMENTED IN THE RURAL AREAS BY VARIOUS
AGENCIES.
THE END