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Background

National Workshop on Pro-poor Housing Finance October 29-30, 2009, New Delhi Presented by LIC Housing Finance Limited. Background. In urban areas, 61.82 million people or roughly one in four persons live in slums (source: Census, 2001)

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Background

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  1. National Workshop on Pro-poor Housing Finance October 29-30, 2009, New Delhi Presented by LIC Housing Finance Limited

  2. Background • In urban areas, 61.82 million people or roughly one in four persons live in slums (source: Census, 2001) • Housing shortage estimated at the end of 10th Five Year Plan is estimated at 24.7 million covering 67.4 million households • Over 90% of the shortage is in the EWS & LIG segment • National Urban Housing/Habitat Policy 2007 sets up national goal for “housing for all”

  3. Government’s initiatives • Several government sponsored schemes in place such as: Indira Awas Yojana National Slum Development Program Rajiv Awas Yojana Two Million Housing Program • In addition, The Government recently announced an Interest Subsidy Scheme for low cost housing

  4. Issues in Pro-poor Housing • Supply side constraints: Inadequate supply of dwelling units under EWS/LIG schemes of the Government. Virtually no supply from private developers. • Affordability gap:- there is a significant gap between repayment capacity vis-à-vis the price of the dwelling unit. • Limited access of the poor to institutional funding. • Apprehension of loans becoming delinquent have made institutions wary of approaching this segment.

  5. The Way forward • Greater Supply of dwelling units, preferably through PPP model where Government allots land to private developers who undertakes the construction & the units are allotted to the poor. Developers maintain profits by commercially developing additional/increased FSI. • Greater emphasis on Slum Rehabilitation. • Mortgage Credit guarantee to be introduced to safeguard interests of the lenders. • Interest Subsidy schemes to be made more liberal & more accessible to the poor. • Tax Exemption on income generated through lending activities in low-end segments.

  6. Thank You www.lichousing.com

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