HOUSING FINANCE

PRESENTED BY
AASHNA
NAINA
BHAVISHYA
RADHAY
TARISH
VIBHUTI
SNIGDHA
WHAT IS HOUSING FINANCE?

• It refers to the finance that is provided to

individuals or group of individuals including
co-operative societies for purchasing or
building the house(s).
• Housing finance is a system
that allows for
the production and consumption of houses.
• Housing finance is used to build and maintain
the nation’s housing stock.
ADVANTAGES OF HOUSING
FINANCE
• Housing finance creates employment, both directly
and indirectly.
• More demand in certain industries like cement, brick
manufacturing, sanitary products, electrical fittings
and glass industries
• Development of rural housing
• Reduces congestion in urban areas by the way of
townships.
• Boast up infrastructure facilities, such as roads,
electricity generation, drinking water facilities, etc.
• Housing facilities not only improve, they also reflect
the culture of the country.
 TYPES OF HOUSING FINANCE

DIRECT SUPPLEMENTAR INDIRECT

FINANCE Y FINANCE FINANCE

FINANCE
FINANCE LENDING TO
PROVIDED TO
PROVIDED FOR HOUSING
PURCHASE
ALTERATION / INTERMEDIARY
ANOTHER
REPAIR AGENCIES
HOUSE
FINANCE
FINANCE
PROVIDED
PROVIDED FOR LENDING TO
AFTER PARI
PURCHASE OF PRIVATE
PASU OR
HOUSE TO BE BUILDERS
SECOND
LETOUT
MORTGAGE

BUY AN OLD
HOUSE

FINANCE FOR
THE PURCHASE
OF PLOT
QUANTUM OF HOUSING LOAN

CATEGORY OF LOAN LTV RATIO (%)

(a) Individual Housing Loans

• Upto Rs. 20 lakh 90

• Above Rs. 20 lakh & upto 80

Rs.75 lakh
• Above Rs. 75 lakh 75

(b) CRE – RH NA
MICRO HOUSING FINANCE
CORPORATION
• Housing finance company, Mumbai
• Incorporated on May 16, 2008
• Micro-mortgages to the urban poor
• Housing finance services to the un-served segments
of the population
• Regulatory clearance form NHB in the form of “COR”
in Feb 2009
• First loan in June 2009
 OBJECTIVE

• To provide housing finance for lower income

households(mostly in the informal sector) in urban
India.

VISION
• To help financially excluded families
own an independent home.
• To help urban low income.
• In India the following institutions provide long term
housing finance-
• Commercial bank
• Cooperative banks
• Regional rural banks
• Agriculture & rural
development banks
• Housing finance companies
• Cooperative housing
finance societies
IMPORTANT THINGS BEFORE AVAILILING
A HOME LOAN
• Eligibility Criteria
• Types of Home Loans
1.
ADJUSTABLE/ FLOATING RATE LOANS:
The interest rate is linked to the lender’s
benchmark rate.
2.
FIXED RATE LOAN:
The interest rate is fixed at the time of taking
the loan.
3. COMBINATION LOANS:
A part of the loan at a fixed rate of interest
and part at an adjustable or floating rate of
interest
• Home First or Loan First
• Loan Amount
• Cost of your Home loan
• EMI/ Pre- EMI
• Tenure
• Documentation-KYC , Credit/ Income , Property
• Insurance Cover
• Default
NATIONAL HOUSING BANK

• Set up on July 9, 1988 under the national

Housing Bank Act, 1987 as the apex level
institution.
• Fully Owned by RBI.
PREAMBLE

• “ to operate as a principal agency to promote

housing finance institutions both at local and
regional levels and to provide financial and
other support to such institutions and for
matters connected therewith or incidental
thereto……”
VISION

• “promoting inclusively expansion with

stability in housing finance market”
MISSION

• “to harness and promote the market

potentials to serve the housing needs of all
segments of the population with the focus on
low and moderate income housing”
HEAD OFFICES

• Head office in New Delhi

• Regional office in Hyderabad
• Regional office in Mumbai
OBJECTIVES OF NHB
Promote a sound, healthy,
viable and cost effective
housing finance system to
cater to all segments of
population
Integrate housing finance
system with the overall
financial system

Promote a network of
dedicated housing finance
institutions to serve different
income groups.
OBJECTIVES OF NHB
Augment resources for the
sector and channelize them
for housing.

Affordable housing credit

Regulate the activities of

housing finance companies
 FUNCTIONS OF NHB
Promoti
onal
Regulat Financ
and Provide
develop
ory Housing ing
Training financial
mental finance
Programme assistance
system in
s to HFI and
India
Direct banks
Strengthen housing Securitizing
credit finance housing
delivery institutions loans
system and their receivables
auditors
Prevention
against the
interest of
depositors
REGULATION

• RBI regulate National housing finance

companies
• National housing Bank
• 9 July 1988 under the National Housing Bank
Act, 1987. NHB is an apex financial institution
for housing
• That could have major repercussions for about 80
HFCs, the largest of which include Indiabulls Housing
Finance Ltd and Housing Development Finance
Corporation
• The RBI's oversight of HFCs will be a step towards the
Indian authorities getting a firmer grip on the risky
shadow banking sector
• Housing finance companies will be treated as a category of non-
banks
• HFCs will continue to comply with the directions issued by the
National Housing Bank till the RBI issues a revised framework
• lenders are not allowed to charge anything for a
prepayment on
• Home loan balance transfer fixed charged of 1-3%
• LTV ratio upto 30 lakh 90%, 30-75 lakh 80%, 75 lakh and
above 75%
• no RBI guideline makes it mandatory for a borrower
HOUSING FINANCE
COMPANIES
HDFC

• Housing Development Finance Corporation

Limited (HDFC) is an Indian financial services
company based in Mumbai, India.
• It is a major provider of finance for housing in
India. It also has a presence in banking, life and
general insurance, asset management, venture
capital, education, deposits and education loans.
 KEY FEATURES OF HDFC
HOME LOAN ARE
• Home loan up to 90% of the property
cost.
• Faster loan processing.
• Internet services for loan repayment.
• Excellent customer care services.
• Home loan starting from 8.6% to 9.45%.
• Larger branch network to avail services.
•GRUH FINANCE
HDFC holds approx. 59% in GRUH.
• It is a housing finance company offering
loans to individuals for purchase, construction
and renovation of dwelling units.
• It also offers loans to the self-employed
segment where formal income proofs are not
available. It has a retail network of 136 offices
across 7 states in India.
 India Bulls Housing Finance
• The Indiabulls Group is primarily an
Indian financial services
conglomerate headquartered in
Gurgaon, India. Its primary
business is housing finance,
consumer finance and wealth
management. The Group also has
a presence in real estate and
pharmaceuticals.
• Indiabulls Housing Finance Ltd.
(IBHFL) is India's second largest
housing finance company
regulated by the
National Housing Bank (NHB). The
company has a balance sheet size
of ₹ 1.39 trillion as of 30
September 2018 and cumulatively
disbursed loans of over ₹ 2.15
• IBHFL is rated 'AAA' by leading rating agencies
including CRISIL and ICRAThe key features associated
with India Bulls Housing Finance are given below.

• Instant Approval of Home loan.

• Approval for the higher loan amount up to 80% of
property cost.
• Zero pre-closure charges.
• Attractive interest rates.
• No Hidden charges.
• Application to disbursal online.
• Flexible repayment options.
 LIC HOUSING FINANCE
• LIC Housing Finance Limited
(LIC HFL) is one of the largest
Housing Finance Mortgage loan
companies in India having its
Registered and Corporate office at
Mumbai.
• LIFE INSURANCE CORPORATION
OF INDIA ..
• LIC Housing Finance is one of the largest
housing finance company backed by LIC.
LIC housing finance offers deals for
resident, non-resident as well as
pensioners. The benefits offered by LIC
housing finance are given below.
• Zero Processing Fees.
• Zero Pre-closure Charges.
• Zero Prepayment charges.
• Quick Loan Processing.
• Multiple Loan schemes.
• Competitive interest rates.
DEWAN HOUSING FINANCE

• Dewan Housing Finance Corporation Ltd. is a

deposit-taking housing finance company,
headquartered in Mumbai with branches in
major cities across India.
• DHFL was established to enable access to
affordable housing finance to the lower and
middle income groups in semi-urban and
rural parts of India.
• DHFL is the second housing finance
company to be established in the country.
• DHFL provides home loan, loan
against property and business
loans. Key features associated
with DHFL are given below.
• Loan amount up to 90% of the
cost of property.
• Home loan interest starting from
8.75%.
• Loan term up to maximum 30
years.
• Easy repayment options.
 L&T HOUSING FINANCE
 
• L&T Housing Finance is next in the list of top housing
finance companies in India. In addition to home loan
L&T Housing finance also offers loan for home
improvement, house extension and loan against
property. Key features of L&T housing finance home
loan are given below.
• Quick Loan Processing.
• Home loan up to 90% of property value.
• Instant Online Approval.
• Zero Prepayment Charges.
• High Loan Amounts of up to Rs. 10 crores.
• Flexible repayment options
STATE BANK OF INDIA

• State Bank of India offers attractive interest rates on home loans

starting at 8.20% p.a.
• The loan tenure can be extended up to 30 years, ensuring a
comfortable repayment period. The processing fee on these loans
is 0.35% of the loan amount (Min. Rs.2,000; Max. Rs.10,000)
plus applicable taxes.
• Women borrowers are also offered an interest concession of 0.05%
on SBI Home Loans.
• No hidden charges and a full waiver of prepayment charges make
them one of the most preferred housing loan products in the country.
 PNB Housing Finance Limited
(PNBHFL)

PNBHFL is an Indian public limited housing

finance company (HFC), headquartered in
New Delhi with branches in major cities across
India.
The company is promoted by
Punjab National Bank and is registered
with state owned bank and regulation authority
of India - National Housing Bank (NHB).
• On 30 March 2019, Punjab National Bank
announced that it had signed an agreement
to sell a 13.01% stake in PNB Housing
Finance to private equity firm
General Atlantic and alternative investment
firm Varde Partners for ₹1,851.60 crore
(US$270 million).

• As on 31st december 2018, the

shareholding pattern in PNB HFL, Highest
shareholding is 32.7 percent of PNB BANK
(PROMOTER/Parent) &
+
INTRODUCTION

 Engage in the business of providing home

loans.
 IBHFL is the second –largest home finance
company in India with 220 branches in 110
cities and towns.
 Rated AAA by leading rating credit agencies
including CRISIL.
IBHFL SCAM

• IBHFL borrowed large sums from various

private and public banks, and used a compex
maze of shell companies to extend loans to
the tune of thousands of crores to firms
owned by large business group. In turn, the
groups invested money in entities owned by
promoters of Indiabulls.
IBHL EVER DAILY LOSS