According to RBI (Reserve Bank of India) data, in 2010-11, the total housing loan disbursed by the banking sector was Rs. 3,46,110 crore, of which priority housing accounted for Rs. 2,30,686 crore. Of the latter, the Indira Awas Yojana — a central government social welfare programme to provide housing for the rural poor accounted for less than Rs. 10,000 crore.
Deducting the sum as one can safely assume a ticket size of Rs. 20 lakh even under the priority sector the total number of beneficiaries stands at just nearly 11 lakh.
The disbursement for higher loan amounts, as per the RBI data for the same period, was Rs. 1,15,424 crore and, here, assuming a minimum ticket size of Rs. 25 lakh, it comes to nearly 4,61,700 persons. Since NHB (National Housing Bank) disburses are far lower, going by its 2005-06 estimates, the total number of people availing housing loans per year from both HFCs (Banks and housing Finance Companies) would be less than 21 lakh in a year. There are about 6 crore urban households in the country; This means, just 3.3% of them get a housing loan every year.
According to the National Sample Survey (NSS) data, in India there are nearly 24 crore households in the country, the housing stock is short by minimum 2.20 crore The ministry of housing & urban poverty alleviation puts the number even higher at 2.47 crore.
The NSS (2008-2009) reveals that less than 13% of the urban population had more than 20 square meter floor space. The per capita availability is as low as 9.45 6 crore. The above data show just how small a portion of the urban housing market is taken care of by the financial sector.
RBI does not push the banks to go out and give housing loans. In India about 45 housing finance companies that come under NHB's purview, about 70% of the business coming from HDFC, another 17% providing LIC Housing Finance. The remaining companies account for just 13% of the business.
to provide subsidy.
NHB data show that, in 2005-06, loans of under Rs. 1 lakh, with no government support from all HFCs accounted for just Rs. 91 crore. The number of families helped was 2.63 lakh (Loan amount Rs. 1 lakh or less), where, typically, banks do not enter unless supported by the government. In the same year, the finance ministry spent Rs. 2,497 crore towards the Indira Awas Yojana, where it underwrites the exposure of the financial institution.
The housing market in India is pretty much in its infancy. As of now, it appears to be no body's responsibility accounting as it does for just 4.44% of India's GDP (Gross Domestic Production). The figure for the US is over 18 per cent.
Deducting the sum as one can safely assume a ticket size of Rs. 20 lakh even under the priority sector the total number of beneficiaries stands at just nearly 11 lakh.
The disbursement for higher loan amounts, as per the RBI data for the same period, was Rs. 1,15,424 crore and, here, assuming a minimum ticket size of Rs. 25 lakh, it comes to nearly 4,61,700 persons. Since NHB (National Housing Bank) disburses are far lower, going by its 2005-06 estimates, the total number of people availing housing loans per year from both HFCs (Banks and housing Finance Companies) would be less than 21 lakh in a year. There are about 6 crore urban households in the country; This means, just 3.3% of them get a housing loan every year.
According to the National Sample Survey (NSS) data, in India there are nearly 24 crore households in the country, the housing stock is short by minimum 2.20 crore The ministry of housing & urban poverty alleviation puts the number even higher at 2.47 crore.
The NSS (2008-2009) reveals that less than 13% of the urban population had more than 20 square meter floor space. The per capita availability is as low as 9.45 6 crore. The above data show just how small a portion of the urban housing market is taken care of by the financial sector.
Disbursement of Home loan by HFC's*
| Size of home loan Rs. | Amount in Rs. Crore | % 0f the total loan |
| Less than 50,000 | 90.78 | 0.41 |
| 50,001-1,00,000 | 2,632.43 | 12.03 |
| 1,00,001 -3,00,000 | 1,994.63 | 9.12 |
| 3,00,001 -5,00,000 | 3,121.50 | 14.27 |
| 5,00,001 -10,00,000 | 5,002.55 | 28.88 |
| Above 1,0,00,000 | 9,027.15 | 41.28 |
| Total | 21,859.04 | 100 |
Source: National Housing Bank – 2005-06*
NHB data show that, in 2005-06, loans of under Rs. 1 lakh, with no government support from all HFCs accounted for just Rs. 91 crore. The number of families helped was 2.63 lakh (Loan amount Rs. 1 lakh or less), where, typically, banks do not enter unless supported by the government. In the same year, the finance ministry spent Rs. 2,497 crore towards the Indira Awas Yojana, where it underwrites the exposure of the financial institution.
The housing market in India is pretty much in its infancy. As of now, it appears to be no body's responsibility accounting as it does for just 4.44% of India's GDP (Gross Domestic Production). The figure for the US is over 18 per cent.
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