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6. Mainly housing loan is taken for the purpose of construction or ready possession houses in surveyed
areas( 34 out of 50 respondents) and 16 out of 50 respondents had taken loan to supplement their
fund requirement for purpose of completion of house.
7. The documents which the banks demand for Housing loans are ownership documents, caste
certificate, income proof, address proof, zoning certificate, rent receipt (if living on rent), copy of
“tharav” from gram Panchayat, document signed by TDO/Sarpanch, 7/12 , 8/12 document copies.
8. Issues faced by the institutions in providing housing loans are non availability of IT Return, income
proof, low income level in rural areas, less value of the property, large family size, etc.
9. Issues faced by the respondents for availing housing loans are long time for approval, fewer amounts
sanctioned than required, cumbersome documentation procedure, lack of IT proof, income proof,
lesser income value of properties, lack of clearance of title, lack of awareness about procedures, etc.
10. Under IAYanamountofRs. 70,000&Rs75,000isgivenasgrant inplain&hilly/difficultareasrespectively.
11. Study indicates that minimum Rs. 30,000-35,000 additional amount is required for the successful
construction of houses in govt. schemes.
12. Issues in government schemes deficiency in allocation criteria of houses, wrong selection of
beneficiaries, inadequacy of unit cost, size of dwelling and structural facilities, implementation
issues and monitoring, ownership issues, etc.
13. There is a strong need for increasing the awareness level of the population in rural areas about the
procedures/ benefits of the housing loans. Need for simplification of documentation procedures and
availability of documents, in government schemes all the central and state level schemes should be
clubbed in one and amount of grant and area provided should be increased, also the amount of loan
for housing under government scheme should be increased.
Major Recommendations:
1. The banks and Govt. agencies should participate in awareness creation programmes through
various mass medias such as television advertisements, News papers, etc. Others mediums such as
exhibitions, farmer’s club may also be utilised.
2. To reduce long approval process of loan and documentation procedures of the financial institution,
banks andother financial institute should create quick andhassle free loanprocedure and government
should provide facility of getting documents online like 7/12, 8/12 documents.
3. Some modifications or changes may be done in RBI norms related to land mortgage to the banks so
that housing loans can be provided in rural areas on larger scale and meet the credit requirement of
rural population.
4. Risk perception of the Branch Managers also play important role in sanctioning loan. Those
managers who believe that housing finance provide more security than other scheme sanction more
housing loan than others who believe that it is more risky. Sensitisation training should be provided
for the purpose.
5. In Government schemes i.e. IAY & SAY it was observed during study that more than one or two
house is allocated to one family. To avoid these kinds of cases all schemes should be clubbed under
one scheme and also proper selection of beneficiaries should be made.
6. Under IAY, beneficiaries can avail loan of Rs 20,000/- which is very meagre amount. It needs to be
increased. And for construction of house the amount of grant provided is up to Rs 70,000 in IAY and
Rs 40,000 in SAY which is not sufficient to construct a good liveable home. The beneficiaries can
only construct one small room without kitchen. This amount also need to be increased.
7. Area provided under rural housing schemes i.e. 20 sq ft and pit level which is only 2 ft for toilet are
not sufficient, it need to be increased.
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