Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India

Basanta K Sahu

doi:doi:10.11648/j.ijber.20150406.12

| Peer-Reviewed

Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India

Basanta K Sahu

Published in International Journal of Business and Economics Research (Volume 4, Issue 6)

Received: 1 October 2015 Accepted: 16 October 2015 Published: 28 October 2015

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Access to housing finance is a major challenge for the poor and low income groups because of underdeveloped housing finance market, high transaction cost, lack of collateral, type of housing credit and other factors specific to local area. The paper analyzes nature and pattern of microfinance for housing (MFH) in India and its impact on low segment housing finance. Using primary data collected from microcredit clients from different regions in two southern states in India (Kerala and Karnataka) it discusses two different MFH schemes to understand low segment housing finance and its impact on rural housing activities. Our data support to estimate the approximate size of the low segment housing credit market and the existing gap between demand for and supply of such credit. Findings of the paper offer better understanding about functioning of low segment housing finance markets and potential to improve housing condition of the poor through developing such markets including MFH. Major constraints of MFH program in India are inadequate fund, poor product design, low scale of operation scale and policy related issue. Inter-links between microcredit and MFH is evident from our data. Average demand for housing credit was estimated three times higher than its supply and mostly for new construction of houses rather to repair and renovate existing houses. Though MFH found inadequate to meet the demand for housing credit but it works as kick starts for housing activities and influences household decision making in terms of start of housing activities, fund arrangement and utilization, allocation of resources, asset creation etc. which are crucial for the poor. Housing activities in our study not found progressive as argued by earlier study [1].

Published in	International Journal of Business and Economics Research (Volume 4, Issue 6)
DOI	10.11648/j.ijber.20150406.12
Page(s)	270-280
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Access to Housing Finance, Microfinance for Housing (MFH), India

References

[1]	Harvard Joint Center for Housing Development Studies, Graduate School of Design. (2000). Housing microfinance initiatives—synthesis and regional summary: Asia, Latin America and Sub-Saharan Africa with selected case studies.
[2]	UN Habitat, (2011). Cities and Climate Change: Global Report on Human Settlements 2011, Washington, DC.
[3]	Planning Commission (2007) Report of the 11th Five Year Plan (2007-2012) Working Group on Urban Housing with Focus on Slums, Govt. of India, Ministry of Housing and Urban Poverty Alleviation, New Delhi.
[4]	National Urban Housing and Habitat Policy 2007 (NUHHP), Ministry of Housing and Urban Poverty Alleviation, Govt. of India, New Delhi.
[5]	Ferguson, Bruce and Haider, Elinor (2000). “Mainstreaming Microfinance of Housing” Inter-American Development Bank.
[6]	Asian Development Bank, (2007). Housing Finance II (HUDCO). http://www.adb.org/Documents/Profiles/LOAN/30204013.ASP.
[7]	Centre for Innovation in Shelter and Finance (2014) Housing Microfinance in Southern India: A Case Study from Growing Opportunity Finance and Habitat for Humanity India’s Technical Assistance Centre Www.habitat.org/sites/default/files/cisf_go_india_case_study.pdf.
[8]	Manoj P. K, (2009), “Emerging Technologies and Financing Models for Affordable Housing in India”, Directorate of Public Relations and Publications, CUSAT, Kochi, Kerala, April 2009.
[9]	IIM Ahmedabad (2000), “Impact of Investment in the Housing Sector on DGP and Employment in the Indian Economy”, a study sponsored by HUDCO, Indian Institute of Management, Ahmedabad, July 2000.
[10]	RBI, (2009). Committee on Financial Sector Assessment (CFSA), India’s Financial Sector: an Assessment.
[11]	Sahu B. K, (2010). ‘Microfinance for Housing in India’, CMR Report Series No - 6, CMR, BIRD, NABARD, Lucknow.

Cite This Article

Plain Text BibTeX RIS

APA Style

Basanta K Sahu. (2015). Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India. International Journal of Business and Economics Research, 4(6), 270-280. https://doi.org/10.11648/j.ijber.20150406.12

Copy | Download

ACS Style

Basanta K Sahu. Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India. Int. J. Bus. Econ. Res. 2015, 4(6), 270-280. doi: 10.11648/j.ijber.20150406.12

Copy | Download

AMA Style

Basanta K Sahu. Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India. Int J Bus Econ Res. 2015;4(6):270-280. doi: 10.11648/j.ijber.20150406.12

Copy | Download

@article{10.11648/j.ijber.20150406.12,
  author = {Basanta K Sahu},
  title = {Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India},
  journal = {International Journal of Business and Economics Research},
  volume = {4},
  number = {6},
  pages = {270-280},
  doi = {10.11648/j.ijber.20150406.12},
  url = {https://doi.org/10.11648/j.ijber.20150406.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150406.12},
  abstract = {Access to housing finance is a major challenge for the poor and low income groups because of underdeveloped housing finance market, high transaction cost, lack of collateral, type of housing credit and other factors specific to local area. The paper analyzes nature and pattern of microfinance for housing (MFH) in India and its impact on low segment housing finance. Using primary data collected from microcredit clients from different regions in two southern states in India (Kerala and Karnataka) it discusses two different MFH schemes to understand low segment housing finance and its impact on rural housing activities. Our data support to estimate the approximate size of the low segment housing credit market and the existing gap between demand for and supply of such credit. Findings of the paper offer better understanding about functioning of low segment housing finance markets and potential to improve housing condition of the poor through developing such markets including MFH. Major constraints of MFH program in India are inadequate fund, poor product design, low scale of operation scale and policy related issue. Inter-links between microcredit and MFH is evident from our data. Average demand for housing credit was estimated three times higher than its supply and mostly for new construction of houses rather to repair and renovate existing houses. Though MFH found inadequate to meet the demand for housing credit but it works as kick starts for housing activities and influences household decision making in terms of start of housing activities, fund arrangement and utilization, allocation of resources, asset creation etc. which are crucial for the poor. Housing activities in our study not found progressive as argued by earlier study [1].},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India
AU  - Basanta K Sahu
Y1  - 2015/10/28
PY  - 2015
N1  - https://doi.org/10.11648/j.ijber.20150406.12
DO  - 10.11648/j.ijber.20150406.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 270
EP  - 280
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20150406.12
AB  - Access to housing finance is a major challenge for the poor and low income groups because of underdeveloped housing finance market, high transaction cost, lack of collateral, type of housing credit and other factors specific to local area. The paper analyzes nature and pattern of microfinance for housing (MFH) in India and its impact on low segment housing finance. Using primary data collected from microcredit clients from different regions in two southern states in India (Kerala and Karnataka) it discusses two different MFH schemes to understand low segment housing finance and its impact on rural housing activities. Our data support to estimate the approximate size of the low segment housing credit market and the existing gap between demand for and supply of such credit. Findings of the paper offer better understanding about functioning of low segment housing finance markets and potential to improve housing condition of the poor through developing such markets including MFH. Major constraints of MFH program in India are inadequate fund, poor product design, low scale of operation scale and policy related issue. Inter-links between microcredit and MFH is evident from our data. Average demand for housing credit was estimated three times higher than its supply and mostly for new construction of houses rather to repair and renovate existing houses. Though MFH found inadequate to meet the demand for housing credit but it works as kick starts for housing activities and influences household decision making in terms of start of housing activities, fund arrangement and utilization, allocation of resources, asset creation etc. which are crucial for the poor. Housing activities in our study not found progressive as argued by earlier study [1].
VL  - 4
IS  - 6
ER  -

Copy | Download

Author Information

Basanta K Sahu

Dept. of Economics, Indian Institute of Foreign Trade, New Delhi, India

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Basanta K Sahu. (2015). Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India. International Journal of Business and Economics Research, 4(6), 270-280. https://doi.org/10.11648/j.ijber.20150406.12

Copy | Download

ACS Style

Basanta K Sahu. Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India. Int. J. Bus. Econ. Res. 2015, 4(6), 270-280. doi: 10.11648/j.ijber.20150406.12

Copy | Download

AMA Style

Basanta K Sahu. Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India. Int J Bus Econ Res. 2015;4(6):270-280. doi: 10.11648/j.ijber.20150406.12

Copy | Download

@article{10.11648/j.ijber.20150406.12,
  author = {Basanta K Sahu},
  title = {Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India},
  journal = {International Journal of Business and Economics Research},
  volume = {4},
  number = {6},
  pages = {270-280},
  doi = {10.11648/j.ijber.20150406.12},
  url = {https://doi.org/10.11648/j.ijber.20150406.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150406.12},
  abstract = {Access to housing finance is a major challenge for the poor and low income groups because of underdeveloped housing finance market, high transaction cost, lack of collateral, type of housing credit and other factors specific to local area. The paper analyzes nature and pattern of microfinance for housing (MFH) in India and its impact on low segment housing finance. Using primary data collected from microcredit clients from different regions in two southern states in India (Kerala and Karnataka) it discusses two different MFH schemes to understand low segment housing finance and its impact on rural housing activities. Our data support to estimate the approximate size of the low segment housing credit market and the existing gap between demand for and supply of such credit. Findings of the paper offer better understanding about functioning of low segment housing finance markets and potential to improve housing condition of the poor through developing such markets including MFH. Major constraints of MFH program in India are inadequate fund, poor product design, low scale of operation scale and policy related issue. Inter-links between microcredit and MFH is evident from our data. Average demand for housing credit was estimated three times higher than its supply and mostly for new construction of houses rather to repair and renovate existing houses. Though MFH found inadequate to meet the demand for housing credit but it works as kick starts for housing activities and influences household decision making in terms of start of housing activities, fund arrangement and utilization, allocation of resources, asset creation etc. which are crucial for the poor. Housing activities in our study not found progressive as argued by earlier study [1].},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Access to Housing Finance by the Poor and Study of Microfinance for Housing (MFH) in India
AU  - Basanta K Sahu
Y1  - 2015/10/28
PY  - 2015
N1  - https://doi.org/10.11648/j.ijber.20150406.12
DO  - 10.11648/j.ijber.20150406.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 270
EP  - 280
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20150406.12
AB  - Access to housing finance is a major challenge for the poor and low income groups because of underdeveloped housing finance market, high transaction cost, lack of collateral, type of housing credit and other factors specific to local area. The paper analyzes nature and pattern of microfinance for housing (MFH) in India and its impact on low segment housing finance. Using primary data collected from microcredit clients from different regions in two southern states in India (Kerala and Karnataka) it discusses two different MFH schemes to understand low segment housing finance and its impact on rural housing activities. Our data support to estimate the approximate size of the low segment housing credit market and the existing gap between demand for and supply of such credit. Findings of the paper offer better understanding about functioning of low segment housing finance markets and potential to improve housing condition of the poor through developing such markets including MFH. Major constraints of MFH program in India are inadequate fund, poor product design, low scale of operation scale and policy related issue. Inter-links between microcredit and MFH is evident from our data. Average demand for housing credit was estimated three times higher than its supply and mostly for new construction of houses rather to repair and renovate existing houses. Though MFH found inadequate to meet the demand for housing credit but it works as kick starts for housing activities and influences household decision making in terms of start of housing activities, fund arrangement and utilization, allocation of resources, asset creation etc. which are crucial for the poor. Housing activities in our study not found progressive as argued by earlier study [1].
VL  - 4
IS  - 6
ER  -

Copy | Download