DEVELOPMENT, GROWTH AND POLICY IMPLICATIONS OF HOUSING FINANCE IN INDIA: AN EVIDENCE FROM HDFC AND LICHFL

Housing Finance is a high flying sector these days and is tipped to grow at a phenomenal 36% P.a. Banks and financial institutions have brought sea changes in their strategies and there is shift from seller's market to buyer's market. Liberal tax incentives by the government, low and competitive interest rates for housing finance has made this sector as red hot sector. House is center and domestic device for mankind's moral and substance development ever since the dawn of civilization. Housing is one of the most important that we human beings need. Adequate housing is essential for human survival with dignity. There are many things that we would find difficult, if not impossible to do without good-quality housing. Housing shortage is a universal phenomenon. It is more acute in developing countries. The housing scenario has become more critical in India in recent years. India has initiated so many housing reform that has taken many forms and manifestations characterized by the reduction in social allocation, cutbacks in public funding and promotion of a real estate culture in close partnership between the state and private actors. Mortgage financing markets can play an important role in stimulating affordable housing markets and improving housing quality in many countries. Unfortunately, these are still in infancy in India. This lack of development often translates into lower homeownership rates or poor housing quality. Most of these problems stem from the central dilemma that the resources are always too limited and housing development heavily depend on the financial institutions such as banks, credit corporations and development banks for the supply of finance to meet their daily financial needs. Against this backdrop, this paper will assess basic nuances of Indian financing system. Housing Development Finance Corporation Ltd (HDFC)is one of the leaders in the Indian housing finance market with almost 17% market share as on March 2010. Serving more than 38 lakh Indian customers as on March 2021, HDFC also offers customized solutions that fit to the need of the customer. In the FY 2020-21, it registered a net profit of `4528.41 crore. It also registered a net profit of ` 971 crore in the quarter ended September 30, 2021.LIC Housing Finance is