07-02-2013, 10:55 AM
HOUSING FINANCE
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MEANING
A set of all financial arrangements that are made available by Housing Financial Companies(HFCs)to meet the requirements of housing is called ‘housing finance’.HF can be used for, namely
Purchase of a flat or house.
Acquisition of a plot, and construction of a house.
Construction of a house.
Extension of a house.
Repairs, renovation and up gradation of a house.
HOUSING FINANCE INDUSTRY
Estimated investment for meeting housing needs up to 2012: US$ 108 bn.
Housing finance contribute 7.25% of GDP last year.
Second largest employment generated in this sector.
Indian housing finance sector reported a compounded annual growth rate(CAGR) of 56% during the period of 2003-2007.
HOUSING FINANCE ASSISTANCE-FACTORS
Housing finance companies consider the following factors before making any financial assistance for housing
Loan Amount
Tenure
Administrative and processing costs
Pre-payment charges
Value addition
EMI calculation methods
LEADING HOUSING FINANCE COMAPANIES
Housing Development Finance Corporation Ltd(HDFC)
State Bank of India Home Finance
Housing Urban Development Corporation(HUDCO)
LIC Housing Finance Ltd
ICICI Home Finance Company Limited
IDBI Home Finance Limited
PNB Housing Finance Limited
Dewan Housing Finance Corporation Limited(DHFL)
GIC Housing Finance Limited
Can Fin Homes Limited(CFHL)
Housing Development Finance Corporation
HDFC was incorporated in 1977 with the main objective of promoting home ownership by providing long-term loans.
Objectives
To increase the number of residential houses in the country by providing housing finance in a systematic and professional manner.
To promote home-ownership.
To increase the flow of funds to the housing sector.
To strengthen housing finance by improving the domestic financial market and financial services.