Rajasthan invites micro finance companies to support affordable housing
Updated: May 03, 2013 03:26:36pm
Jaipur, May 3 (KNN) The Government of Rajasthan has invited the participation of micro finance companies for the development of an affordable housing project in the State for which finance is required for individual house owners.
In this regard, the State Department of Urban Development Housing and Local Self Government has organized a one day conference on affordable housing on May-11 in Jaipur. Several Micro Finance Housing as well as other housing finance companies will be attending the conference.
It is hoped that the event will extend an opportunity for them to provide finance to the applicants of the large scale houses being constructed under IHSDP – Integrated Housing and Slum Development Programme, BSUP – Basic Services to the urban poor, and Rajiv Awas Yojana.
The role of the micro finance institutions in enabling low income consumers to buy affordable houses is very important in view of the fact that availability of adequate financing sources for consumers is a major factor in determining the sale of the housing projects.
Currently, real estate developers constructing low cost housing projects are partnering with microfinance institutions to meet the demand of consumers for affordable housing. There is an enormous unmet demand for low-income housing finance. Needless to say, the low income segment of the society finds it considerably difficult to get the home loans.
By investing in homes, the low-income groups accumulate equity that can then be used as collateral and it can make them credit worthy which is a critical condition for access to finance and income generating opportunities.
The 11th Five Year Plan has estimated the urban housing shortage at the commencement of the Plan period to be 24.7 million units, with 99 per cent of the shortage pertaining to the economically weaker sections (EWS) and lower income groups (LIG).
The situation is further aggravated by high shortage of rural housing for about 7 million (RBI, 2009). It is estimated that over 170 million people in the country live in slums without adequate access to clean water, sanitation and security of tenure, and another two million are homeless. With a 3 per cent urban growth rate, the country’s 25 million housing shortfall is only set to rise, leading to more slums.
India's housing shortage has been well documented and debated over a period. The Asian Development Bank (2007) has estimated that India’s housing shortage is as high as 40 million units, suggesting that more than 200 million people are living in chronically poor housing conditions.
Moreover, urbanization has played a key role in making India’s housing problems worse.
Thus, the role of housing microfinance becomes all the more important as a facilitator to bridge this demand supply gap and highlights an urgent need for partnership between real estate developers and microfinance institutions. (KNN)
In this regard, the State Department of Urban Development Housing and Local Self Government has organized a one day conference on affordable housing on May-11 in Jaipur. Several Micro Finance Housing as well as other housing finance companies will be attending the conference.
It is hoped that the event will extend an opportunity for them to provide finance to the applicants of the large scale houses being constructed under IHSDP – Integrated Housing and Slum Development Programme, BSUP – Basic Services to the urban poor, and Rajiv Awas Yojana.
The role of the micro finance institutions in enabling low income consumers to buy affordable houses is very important in view of the fact that availability of adequate financing sources for consumers is a major factor in determining the sale of the housing projects.
Currently, real estate developers constructing low cost housing projects are partnering with microfinance institutions to meet the demand of consumers for affordable housing. There is an enormous unmet demand for low-income housing finance. Needless to say, the low income segment of the society finds it considerably difficult to get the home loans.
By investing in homes, the low-income groups accumulate equity that can then be used as collateral and it can make them credit worthy which is a critical condition for access to finance and income generating opportunities.
The 11th Five Year Plan has estimated the urban housing shortage at the commencement of the Plan period to be 24.7 million units, with 99 per cent of the shortage pertaining to the economically weaker sections (EWS) and lower income groups (LIG).
The situation is further aggravated by high shortage of rural housing for about 7 million (RBI, 2009). It is estimated that over 170 million people in the country live in slums without adequate access to clean water, sanitation and security of tenure, and another two million are homeless. With a 3 per cent urban growth rate, the country’s 25 million housing shortfall is only set to rise, leading to more slums.
India's housing shortage has been well documented and debated over a period. The Asian Development Bank (2007) has estimated that India’s housing shortage is as high as 40 million units, suggesting that more than 200 million people are living in chronically poor housing conditions.
Moreover, urbanization has played a key role in making India’s housing problems worse.
Thus, the role of housing microfinance becomes all the more important as a facilitator to bridge this demand supply gap and highlights an urgent need for partnership between real estate developers and microfinance institutions. (KNN)
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