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• Interaction with Mahindra Rural Housing Finance Limited and Equitas Housing Finance Limited
helped in the identification of role of HFC’s in covering the customers who are not eligible to take
loans from Banks due to lack of proper Documentation and Income Proof. Thus, HFC’S plays a vital
role in identifying the self-employed, non-professional & informal salaried segments for funding in
the affordable housing segment.
• Analysis of credit risk of HFC’s reveals that since they have invested in people, they involve in the
process and technology which effectively mitigate risks including technical, legal and credit risk
posed by the market environment and by its borrowers.
Major Recommendations:
• Awareness about such Housing Finance Companies is limited with rural people which can be
improved by the appointment of a rural agent by the Housing Finance Company in the areas, so that
the people can contact them and get benefitted.
• The numerous housing finance agencies which so far supported housing in urban and semi – urban
areas are to be encouraged in looking for avenues to enter the rural housing sector.
• The insurance should bemade an integral part of housing scheme, as the beneficiaries will be insulated
from the vulnerabilities he/she might face in future ( in the event of death, permanent disability,
theft/fire in house). Thus the insurance may at least guarantee in securing a roof for the family.
• The focus of high cost structured financial institutions should turn from office oriented approach to
door-step delivery approach with low cost delivery system and also leveraging on technology.
• Tamil Nadu Rural Housing Board may be established as a subsidiary of Tamil Nadu Housing Board
which will exclusively concentrating on catering the housing services to peri – urban and rural areas.
Housing Board may also consider in having a collaborative approach with HFC’s in order to have
Maximum Coverage in rural Areas.
• There is cost escalation in the building a decent and quality house. The Amount provided for the
Government Scheme Houses should be suitably increased so that it can be subsidizing the rural
people and also reduces their debt burdens.
• Since Most of people now in the rural areas are opting for works under MGNREGA, these people
can be suitably modified into the construction works of government scheme houses. Thus it helps in
curtailing the expenditure of the people spent on construction of government scheme houses.
• There should be a need of exploring the possibilities of developing the low-cost alternatives to
traditional building materials and technologies. It helps in saving the time and cost at the same
time not compromising the quality and long –lasting durability. Thus the rural housing will achieve
a very dynamic prospect. The government can encourage the Low Cost, Pre – Fabricated House
Construction Companies to have a tie-up with government in building the rural houses by which
time, materials, man work is saved and so that enables to cover the vast population.
• There is a need of three stage developers in enhancing the rural housing finance and constructions.
• Enablers-SHGs, NGO’s and Registered Societies, Panchayat Presidents to identify the genuine user
groups and acts as the channels of communication.
• Providers-Financial Institutions, Government Departments, Bankers, NBFC’s, HFC’s to provide the
approvals, Incentives, Technical and Financial Support.
• Executors- Linkages with rural Masons Groups through MGNREGA, Public Private Partnerships,
tie ups with Low Cost, Pre–Fabricated Houses Construction Companies to execute the process of
construction of houses.
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