As per the news, HDFC Ltd, a leading player in the housing finance business, also formed a rural housing division two years ago to focus on these markets. Also DHFL Group launched a company, Aadhar Housing Finance Ltd (AHFL), in joint venture with IFC to focus on the rural market. The company has seen its loan book grow to around Rs 400 crore over the last two years.
But guys are't there some rules and regulations??I have heard that banks and housing finance companies offers money for part improvement or construction of homes to keep the repayment load on the borrowers manageable.!!!!!!
Yes in that regards the land is used as collateral, the banks have found it is best not to possess it as this creates a scare in the market, driving away potential consumers. Hence they have found out new ways of collecting the repayment.
Yes Shivshankar the housing finance companies are moving to villages to finance the sector in a big way, but through a model that is totally different from that of urban India.
Exactly guys there some schemes also for the rural India in terms of bank loans. In the last two years, the private sector has pumped in about Rs 1,500 crore in rural housing. This is almost 20 per cent of the revised estimate of Rs 8,121 crore that the government spent on its rural housing scheme Indira Awas Yojana in FY 13 and plans to spend in FY 14.