1. EMERGING TRENDS IN HOUSING FINANCE IN INDIA
Dr.C. PARAMASIVAN
Assistant Professor & Research supervisor
P. MARI SELVAM
Ph.D, Full Time Research Scholar,
PG &Research Department of commerce,
Periyar EVR College, Tiruchirappalli – Tamilnadu
Email: paramselp@yahoo.in Cell: 9442384207
ABSTRACT
--------------------------------------------------------------------------------------------------------------------House is the basic needs of human being to stay and live in a safe from the nature
and artificial atmospire around the world. Even human being from the early period, starts his
life only from the shelter and initially needs of the housing had stay and it become a
sophisticated life style of the modern lives. In India, providing housing facilities become a
challengeable task to the government and its policies laid down on needing the housing requires
meets of the people. Due to growth of income generation and urbanization, housing sector
become a booming industry in the country. Therefore Banks and financial institutions were
established a separate division of housing finance to provide finance facilities to purchase,
renovation, construction of houses. In this regards, this paper highlights the nature of housing
finance and its impact in the financial system of the country, major housing finance provider,
problems and prospectus of housing finance in India.
--------------------------------------------------------------------------------------------------------------------Key words: Financial System, Housing Finance, Mortgages, EMI, Repayment period, ALM
Introduction
Housing finance is one of the emerging aspects of the financial system of the country
which consists of enormous growth prospects and demand for a long period because housing is
an indispensable requirements of the human being to live in the world. In India, around 30 per
cent of the population still starving for a housing facilities .Requirements of the housing has been
increasing fast due to the urbanization, migration, modernization, life style, purchasing power
and income generation .

2. Drivers of Growth
Housing may refer to House , Home , Dwelling , Residence (disambiguation) , Lodging ,
Shelter (building) , List of human habitation forms
Housing in India becomes a vital segment in the country which consists of High demand
growth due to the following reasons;
Improved Affordability
Rising disposable income
Lower interest rates
Tax incentives (interest and principal repayments deductible)
Increasing Urbanization
Currently only 28% of the Indian population is urban
Favorable Demographics
60% of India’s population is below 30 years of age
Rapid rise in new households
Increasing number of nuclear families
Housing finance institutions
The below list exhibits the various institutions which provides housing finance facilities
at present in the country.
Housing finance
institutions
Commercial banks
Cooperative
housing finance
societies
Housing finance
Companies
Cooperative banks
Agriculture and
rural development
banks
Regional rural
banks
List of housing finance companies in India
The following are the List of Housing Finance Companies granted Certificate of
Registration (COR) under Section 29A of the National Housing Bank Act, 1987
Can Fin Homes Limited
Cent Bank Home Finance Limited
First Blue Home Finance Limited
Dewan Housing Finance Corporation Ltd.

3. DHFL Vysya Housing Finance Ltd.
GIC Housing Finance Ltd.
GRUH Finance Ltd.
Housing and Urban Development Corporation Ltd
Housing Development Finance Corporation Ltd.
ICICI Home Finance Company Ltd.
Ind Bank Housing Ltd
LIC Housing Finance Ltd
Manipal Housing Finance Syndicate Ltd.
National Trust Housing Finance Ltd.
PNB Housing Finance Ltd
REPCO Home Finance Ltd
Sundaram BNP Paribas Home Finance Ltd.
Vishwakriya Housing Finance Ltd
Indo Pacific Housing Finance Limited
IDBI Homefinance Limited (IHFL)
Top 10 Housing Finance Companies in India
The following are the 10 top housing finance companies of India:
Housing Development Finance Corporation Limited (HDFC)
Housing Development Finance Corporation Ltd (HDFC) is one of the leaders in the
Indian housing finance market with almost 17% market share as on March 2010. Serving more
than 38 lakh Indian customers as on March 2011.
State Bank of India Home Finance (SBI)
State Bank of India is another major player in the Indian housing finance market with
17% of the market share, same as HDFC's share as on March 2010. The SBI Housing Loan
schemes are specifically designed to meet the varied requirements of the customers.
Housing Urban Development Corporation (HUDCO)
Through
its
‘Niwas’
scheme,
HUDCO
offers
housing
loans
for
the
buying/constructing house/flat. Loans are also offered for renovation/extension/alteration of
existing house/flat.

4. LIC Housing Finance Limited
LIC Housing Finance is another major player in housing finance sector in India with
about 8% of market share. Promoted by Life Insurance Corporation of India, LICHFL has an
extensive distribution network with a strong brand presence.
ICICI Home Finance Company Limited
ICICI is the third largest housing finance company in India with almost 13% market
share. It offers various types of home loans for its customers which may have tenure up to 20
years.
IDBI Home Finance Limited (IHFL)
Founded in January 10, 2000, IDBI Home finance Limited has become one of the
major players in the Indian housing finance market with about 4% market share as on March
2010.
PNB Housing Finance Limited
PNB Housing Finance Limited offers a wide range of loans for purchase/construction
of property to resident Indians as well as NRIs. It also offers housing finance for renovations,
repairs and enhancement of immovable properties.
Dewan Housing Finance Corporation Limited (DHFL)
Dewan Housing Finance Corporation Limited is one of the largest housing finance
solution providers in India with an extensive network of 74 branches, 78 service centers and
35 camps spread across the nation.
GIC Housing Finance Limited
GIC Housing Finance Limited, one of the leading housing finance companies in India,
was initially established as ‘GIC Grih Vitta Limited’ on December 12, 1989. Promoted by
General Insurance Corporation of India.
Can Fin Homes Limited (CFHL)
Can Fin Homes Limited is another big player in the Indian housing finance market
with an extensive network of 40 branches. It is also the first and one of the biggest banksponsored (sponsored by Canara Bank) housing finance companies in India.

5. Conclusion
Housing finance is one of the emerging field in the modern financial system of the
country which consists of enormous growth prospects due to urbanization, capital formation,
changing life style and increasing youth population.
All the banking and non banking
institutions have been established a separate unit to deal housing finance facilities to needed
people apart from national housing bank.
Hence, it is concluded that, there is a demand for
housing in both urban and rural population in the country and demand for the housing fiancé is
also increasing due to changing attitude of the people to stay in an own house. Hence, flouring
finance institution shared utilize this opportunities to provides finance to the needed people and
RBI must be serious in fixing the norms and policy regarding housing fiancé became own house
is the ultimate achievement of the poor and middle class people in our country.
Bibliography
1. Housing finance in India – by ICFAI press.
2. Housingfinance.org – www.housingfinance.org/pdfstorage/7640060605.pdf.
3. (http://www.icfaipress.org/books/housingfinanceinIndia_ct.asp).
4. Income housing policy – by Ramesh Ramanathan (India Together).
5. India: Studies and Technical Advisories in Housing Finance - Urban Institute A credible
low.
6. NHB report on trend and progress of housing in India, June 2004.