National%20Workshop%20on%20Pro-poor%20Housing%20Finance%20%20%20%20%20%20%20October%2029-30,%202009,%20New%20Delhi%20%20%20%20%20Presented%20by%20LIC%20Housing%20Finance%20Limited

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
Governments 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

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