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    MORTGAGE Presents Ti On

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    navaneethmap
    The document discusses housing finance and mortgages in India. It notes that housing is a basic necessity that supports economic activity and employment. It also contributes significantly to India's GDP. Mortgage lending in India is growing 20-30% annually. Common types of mortgages include simple, conditional sale, usufructuary, English, reverse, and anomalous mortgages. Major players in the Indian mortgage market include HDFC, LIC Housing Finance, ICICI Home Finance, SBI Housing Finance and several other banks. The housing sector faces opportunities such as urbanization and tax benefits, but also challenges around reaching rural areas and minimizing formalities.

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    MORTGAGE Presents Ti On

    Uploaded by

    navaneethmap
    31 views15 pages
    The document discusses housing finance and mortgages in India. It notes that housing is a basic necessity that supports economic activity and employment. It also contributes significantly to India's GDP. Mortgage lending in India is growing 20-30% annually. Common types of mortgages include simple, conditional sale, usufructuary, English, reverse, and anomalous mortgages. Major players in the Indian mortgage market include HDFC, LIC Housing Finance, ICICI Home Finance, SBI Housing Finance and several other banks. The housing sector faces opportunities such as urbanization and tax benefits, but also challenges around reaching rural areas and minimizing formalities.

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    The document discusses housing finance and mortgages in India. It notes that housing is a basic necessity that supports economic activity and employment. It also contributes significantly to India's GDP. Mortgage lending in India is growing 20-30% annually. Common types of mortgages include simple, conditional sale, usufructuary, English, reverse, and anomalous mortgages. Major players in the Indian mortgage market include HDFC, LIC Housing Finance, ICICI Home Finance, SBI Housing Finance and several other banks. The housing sector faces opportunities such as urbanization and tax benefits, but also challenges around reaching rural areas and minimizing formalities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views15 pages

    MORTGAGE Presents Ti On

    Uploaded by

    navaneethmap
    The document discusses housing finance and mortgages in India. It notes that housing is a basic necessity that supports economic activity and employment. It also contributes significantly to India's GDP. Mortgage lending in India is growing 20-30% annually. Common types of mortgages include simple, conditional sale, usufructuary, English, reverse, and anomalous mortgages. Major players in the Indian mortgage market include HDFC, LIC Housing Finance, ICICI Home Finance, SBI Housing Finance and several other banks. The housing sector faces opportunities such as urbanization and tax benefits, but also challenges around reaching rural areas and minimizing formalities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 15

    Mortgage

    Presented By:
    Navaneeth M
    4NM09MBA44
    Housing in India

     A basic human necessity supporting economic activities


     Second largest employment generator, next to agriculturist
     Has forward and backward linkages with over 250 ancillary
    industries
     Every rupees spent on construction, an estimated 75 - 80
    paise is added to GDP
     Mortgage Industry is growing 20-30% y-o-y basis
     Contribution of housing in GDP is about 6%
     Percentage of outstanding housing loan to GDP is
    12%(China), 22%(Malaysia), 40%(Hong-Kong) and 65%(USA)
    Introduction
     What is Housing Finance?

    - Construction of a House / Flat

    - Purchase of land / ready house / Flat

    - Extension of existing house / Flat

    - Repairs, renovation of a house / Flat

    - Schools, Hospitals

    - Co-operative Housing Society

    - Construction of Workers / Employees Quarters


    Why Housing Loan ?

     A real saving for any class individual

     An asset always likely to appreciate

     Compare with several other savings

     Easy to acquire, repay and transfer

     A good tax savings facility

     A decent line of business in modern days


    Definition of Mortgage

    A loan to finance the purchase of real estate usually


    with specified payment periods and interest rates. The
    borrower gives the lender a lien on the property as
    collateral for the loan.
    Who can be the Applicant ?

     An Individual ?

    - Salaries / Self-employed / Businessman / Professional /


    Agriculturist / Artist etc..

     A firm/ Company / Trust / hospital etc…

     A Co-operative Society

     Industrial Estate / Builder-Contractor

     Senior Citizen
    Mortgage-financing companies
    • LIC Housing Finance
    • HDFC
    • ICICI Home Finance
    • SBI Housing Finance
    • UCO Bank
    • State Bank of India
    • State Bank of Mysore
    • Allahabad Bank
    • United Bank of India
    • United Commercial Bank of India
    • Bank of Baroda
    • Kotak Mahindra Bank
    • Citi Bank
    • HSBC
    • Standard Chartered Bank
    Market Share
    Types of Mortgage
    1. Simple Mortgage

    2. Mortgage by Conditional Sale

    3. Usufructuary Mortgage

    4. English Mortgage

    5. Reverse Mortgage

    6. Anomalous mortgage
    What formalities ?
     Application
     Enclosures :
    - Estimate / Land papers / Plans / Designs approved by
    the Municipal or Town planning Dept.
    - Salary certification / IT-ST-Wealth tax Assessment
    - Duplicate papers
    - Agricultural / Urban land
    - Proof of residence
    - Builders credentials
    Environment Factors
    SWOT ANALYSIS
    Strengths

     An active mainstream sector


     Effective regulatory framework
     Extensive network of regional banks, microfinance institutions,
    co-operatives and rural banks
    Weakness

     Interest rate war persistent


     Lack of uniformity of norms
     Increase in default rates
    Opportunities

     Increasing urbanization
     Housing microfinance has potentials
    Tax rebates on house loans
    Falling interest rates
     Lower SLR and CRR will enhance liquidity, so more loans can be offered

    Threats
    Lower transactions levels in reality sector
    High switching costs of customers
    Challenges

     Need of rapid spread of the business in rural

    area

     Minimizing the formalities involved in the

    procedure

     Microfinance for housing which reaches to poor

    people

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