Date post: | 06-Apr-2018 |
Category: |
Documents |
Upload: | yogesh-nayak |
View: | 220 times |
Download: | 0 times |
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 1/17
Housing
Finance
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 2/17
Introduction
Housing ± One of the basicneeds of the society.
Housing ± Closely related with
the socio economicdevelopment of the country.
Housing sector in India hasremained underdeveloped in the
past
HF = Fund Based Financial Service
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 3/17
History«..
Responsibility for providing housing finance largelyrested with GOI till early 80¶s.
Housing & Urban Development Corporation
(HUDCO) established in 1970 as a fully owned
GOI enterprise.Objectives of HUDCO ±
To revolutionize the housing conditions of low income
group, weaker section and also look after urban devlop.
Providing long term finance for construction of houses
Finance setting up of new satellite towns
Finance setting up of building material industries
Subscribing deb. / bonds of state Housing boards etc.
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 4/17
National Housing Bank (NHB)
NHB established in 1988 through
NHB Act, 1987
NHB = established by RBI.
NHB = Apex financial institution for
housing finance (HF) in India.
NHB may borrow funds in foreigncurrency from any bank or FI in
India / foreign (prior permission of
GOI & RBI)
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 5/17
Objectives of NHB
To promote / establish HFIsRegulator towards activities of HFCs
To make housing credit affordable
To enhance resources for the Housingindustry
Make loans / advance / financial
assistance to ±HFIs
Scheduled Banks
Central / State authority established by
some Act and engaged in slum clearance
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 6/17
Structure of HF Industry in India
Housing Finance
Informal (Unorganized) Sector (70%) Formal (Organized) Sector (30%)
House Hold Savings
Borrowings from
Friends / relatives /
money lenders
Disposal of Existing
properties
Banking
Government
Non Banking
Commercial & Cooperative
NBFCs
HFCs
N
BHFCs ± LIC / GIC / HDFC,SBIHF, CANFIN Home, CITIHome,
Dewan Housing Finance etc.
NHB
HUDCO
State Govt.
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 7/17
Role of NHB
NHB
Promotional Financial Regulatory
Direct Finance Refinance
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 8/17
Promotional Role of NHB«..
Development & establishment of HFIs
/ HFCs at local & regional levels in
Pvt. and joint sector.
Coordination with Govt & other
agencies to amend existing laws
relating to housing finance
Encouraging NGOs etc in Housing
Development
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 9/17
Financial Role of NHB«..
Direct Finance provided through
Home Loan A/c Scheme (HLAS)
Financial Support to HFCsFinancial Support to industrial units
engaged in manufacturing / supplying
building material
Extends term loans at market rate for
land development projects
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 10/17
Refinance facility available to individuals and
Co¶s upto an extent of Rs. 1 cr. for purchase /
repair / construction / up gradation etc.
Eligibility criteria for HFC¶s to draw 1cr.-Registered with NHB
Should provide long term finance for purchase /
repair / construction / up gradation etc.
75% of capital employed needs to be invested aslong term housing finance
Net Owned funds (NOF) of atleast Rs. 10 cr.
Net NPAs not more than 5% of net advances
Financial Role of NHB«..
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 11/17
Financial Role of NHB«..
Financial Assistance provided at
either of Fixed or Floating rate.
Rate of interest charged depends
upon credit rating assigned to the Co.
Financial assistance is provided for a
period of 2-15 yrs.
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 12/17
Regulatory Role of NHB«..Supervises/ controls the functioning of theentities associated with Housing Finance(HFCs, NBFC, NBHFC¶s Banking financeCo¶s etc.)
Issues guidelines / regulations from time to
timeThe regulatory guidelines issued are inrelation to:
Registration
Capital adequacy
income recognitionLending norms
Interest rates to be charged
Reporting norms
Advertisement guidelines for inviting depositsthrough public.
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 13/17
Procedure of Disbursement of
Loans by HFCs
Eligibility criteria for individuals ±
Loans must be directly given to
individuals / group of individuals
Earning life of applicant (60 yrs) must
cover the repayment period.
Any other criteria stipulated from time to
time Afterwards application accepted with
processing fees + Necessary Docs
Appraisal of the proposal
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 14/17
Appraisal of the proposal
Credit Appraisal ± SustainedRepayment capacity of applicant is
assessed through
Age
Business Income
Professional Income
Other income
Academic backgroundEmployment stability
Family background
Number of dependents
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 15/17
Legal Appraisal ± Documents likeOriginal Title Deeds
Revenue receipts
Etc are cross verified to assess the mortgage
able security¶s value.
Technical Appraisal ±
Counter checking the furnished
information, records, approvals,clearances, certificates etc. of LIC policies,
Fixed Deposits etc.
A Guarantor is also asked for.
Appraisal of the proposal
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 16/17
Maximum Amt of Loan Granted
Maximum 85% loan granted of the
cost of (Land + Construction)
Disbursement done either ininstallments / whole amount
EMI payable every month by borrower must not exceed 1/3 of the take home
salary
8/3/2019 Housing Finance Presentation
http://slidepdf.com/reader/full/housing-finance-presentation 17/17
Thank You