THE COMPETITIVE SCENARIO OF HOUSING FINANCE SECTOR IN INDIA

Liberalization of the housing finance sector has paved the way for rapid growth of housing finance in India. Over the years, the mix of market orientation of the housing finance system and an enabling regulatory framework has lent the much desired vibrancy to the housing market. The vibrancy is manifested in the intense competition among lenders and the wide choices available to borrowers. Lower lending rates, stable property prices, rising personal incomes and tax incentives for owner occupied homes have contributed to the increase in the demand for housing finance. Policy makers and the housing industry alike are oriented towards affordable housing in order to develop an inclusive housing finance sector. The builder community and lending institutions have awakened to the huge market potential for affordable housing for lower income households. In the light of the vibrancy of the sector, the article attempts to capture the competitive scenario the Housing Finance Sector in India.