A Study of Housing Finance Sector - MBA Finance
A Study of Housing Finance Sector - MBA Finance
Abstract
Housing financing as a financial business is still in its infancy in India. The current increase in housing and housing finance activity reflects the thriving condition of India's home finance industry.
Introduction
The Housing and Urban Development Corporation (HUDCO) was established by the state in 1970 to fund housing and urban infrastructure operations; in 1977, the Housing Development Finance Corporation (HDFC) was established as India's first housing finance business in the private sector.
Currently, NHB has authorized 29 HFCs for refinancing assistance.
HUDCO is a significant federal agency. The primary goal is to provide funding to the state government for infrastructure development. However, the whole situation has altered since it joined the individual home financing market. The major interest rate battle began when HUDCO began providing home financing at 11.5 percent, with deductions bringing the interest rate down to 8.81 percent.
Following NHB, several home finance firms turned to HUDCO to refinance their projects. Home trust Ltd., a Gujarat Abuja Group business, Global Home Financing Ltd., a syndicate of renowned builders, Weizmann Homes Ltd., a Weizmann Finance Ltd. company, and Maharishi Housing Finance Corporation Ltd., a Maharishi Group company, are also involved in the housing finance industry. SBI Home Finance Ltd., a subsidiary of SBI, and PNB Housing Finance Ltd., a subsidiary of PNB, are also doing well. SBI Home Finance Ltd. is moving slowly at the moment, although PNB Housing Finance Ltd. has just established a new branch near Shoppers Stop in Andheri.
BOB Housing Financing Ltd., a subsidiary of Bank of Baroda, offers extremely appealing housing finance programmed as well. Can Fin Homes, a highly aggressive subsidiary of Canara Bank in Southern India, is also doing extremely well in Western India.
Comments
Post a Comment