A

Presentation on
“Housing Finance”

Prepared By:
Pallabi Sarma
Sanjib Kumar Das
Definition:-

“The purpose of a housing finance system is to

provide the funds which home-buyers need to purchase
their homes. This is a simple objective, and the number
of ways in which it can be achieved is limited. Many
countries has developed various complicated system for
housing finance. However, the essential feature of any
system, is that, the ability to channel the funds of
investors to those purchasing their homes, must
remain.”
 Regulatory Body

The National Housing Bank (NHB) was

established in July 1988 as the apex body for the
housing finance sector. NHB is wholly owned by
the Reserve Bank of India (RBI), the central bank.

NHB's three primary responsibilities are to

 Mobilize resources for the housing sector,
 Promote the development of housing finance

companies (HFCs), and

 Regulate their operations.
 Need for housing loans
 Taking a home loan makes great sense from a long-term savings
perspective.

 The interest and principle repayments on home loans have tax-benefits

attached to them for resident Indians.

 The fact that rents of residential properties are going northwards, taking a
home loan is more advantageous. The EMIs of a home loan will be much less
than the rent you pay for your rented accommodation. Therefore, it makes
sense to live in your own home than a rented one.

 Moreover, house loans are not as cumbersome or as expensive as they were

a decade back. With the increasing competition Housing Finance Companies
are offering many incentives to attract clients like sanctioning the housing
loan without requiring you to identify property as a pre-requisite for
eligibility, free accident insurance & property insurance, waiving of pre-
payment penalty, waiving of processing fee etc.
 Major Players in Housing Finance Industry
 Housing Development Finance Corporation Limited (HDFC)
 State Bank of India Home Finance (SBI)
 Housing Urban Development Corporation (HUDCO)
 LIC Housing Finance Limited
 ICICI Home Finance Company Limited
 IDBI Homefinance Limited (IHFL)
 PNB Housing Finance Limited
 Dewan Housing Finance Corporation Limited (DHFL)
 GIC Housing Finance Limited
 Can Fin Homes Limited (CFHL)
 Interest Rate of Housing Loan

Prevailing interest rate of L I C Housing Finance at

Guwahati
Up to 20Lakhs @ 9.25%
Above 20Lakhs @ 9.75%
 Interest Calculation Method

 Compound Interest.
 Simple Interest.

Compound Interest – SBI, LICHFL etc

Simple Interest - Others
Thank You