Post by troya on Jan 24, 2011 4:22:34 GMT -5
Housing finance is another important input to housing. A number of housing finance institutions have come into existence in recent years: they primarily cater to the middle and higher income groups. In view of the fact that since 30 percent of the urban population is now living in slums and another 10 percent in substandard houses, it is imperative that housing finance is made available to them if they are to build/develop their houses.
These people cannot get finance from the existing housing finance institutions in Kerala as the rules and regulations discourage them. Consequently, either the rules and regulations of the existing financial institutions are to be changed or new institutions are to be established if housing finance is to be made available to the lower-income families and slum dwellers. This has been highlighted in the report of the Task force thus:
“That urban poor have great need for small amounts of money to repair, redevelop, or augment their homes. There is no institutional arrangement for such loans. This lacuna needs to be bridged as soon as possible. For innovative banking in this field to cater to low-income groups it will be necessary to devise a community-based system.”
In recent times in Kerala Property developments have caught the attention of investors worldwide, mainly due to the liberal attitude of the banks and other financing institutions towards home loans. Home and property loans are available at less than half the interest rate charged just a few years ago. Even then much more needs to be done to speed up real estate developments. Banks that process a loan application at lightning speed always look into the ability of the customer to repay the loan on time. In such a situation many of the poor people used to be left out, mainly due to the vagaries in monthly incomes
These people cannot get finance from the existing housing finance institutions in Kerala as the rules and regulations discourage them. Consequently, either the rules and regulations of the existing financial institutions are to be changed or new institutions are to be established if housing finance is to be made available to the lower-income families and slum dwellers. This has been highlighted in the report of the Task force thus:
“That urban poor have great need for small amounts of money to repair, redevelop, or augment their homes. There is no institutional arrangement for such loans. This lacuna needs to be bridged as soon as possible. For innovative banking in this field to cater to low-income groups it will be necessary to devise a community-based system.”
In recent times in Kerala Property developments have caught the attention of investors worldwide, mainly due to the liberal attitude of the banks and other financing institutions towards home loans. Home and property loans are available at less than half the interest rate charged just a few years ago. Even then much more needs to be done to speed up real estate developments. Banks that process a loan application at lightning speed always look into the ability of the customer to repay the loan on time. In such a situation many of the poor people used to be left out, mainly due to the vagaries in monthly incomes