Housing Finance in India: Challenges and Issues Housing Finance in India: Challenges and Issues

Abstract

House is a centre and domestic device for mankind's moral and core development ever since the dawn of evolution and civilisation. Housing is one of the basic requirements that human beings need. Good housing is a pre-requisite for human development and welfare. It provides shelter, security, amenities and privacy to the human beings for decent living. There are many things that people would find difficult, if not impossible to do without good-quality housing. Housing shortage is a universal phenomenon. Without good housing, people cannot realise their full potential and carry on the life they want to lead. Good housing reflects the general welfare of community, whereas bad housing leads to serious consequences such as diseases, immorality, and juvenile delinquency. Housing is also an investment activity and provides impulsion to economic growth. It has both forward and backward linkages. Because of its forward and backward linkages, even a small initiative in housing will drive multiplier effect in the economy through the generation of employment and demand. Housing finance is not a new concept in finance sector of India. It has developed rapidly during last few decades due to the enthusiastic interest of Government to cut-short the housing problem of the country. Although, present environment of finance sector seems to be suitable for uninterrupted growth of housing finance market, but there are few general problems, which create challenges and issues directly and indirectly. This paper is an attempt to reveal such problems and challenges in India.