CONTENTS Preface ix Acknowledgements xiii List of Abbreviations xv 1. HOUSING FINANCE: AN INTRODUCTION I Sociological and Biological Significance of Housing 2 State of Housing in India 6 Structure of Housing Finance in India 8 Policy of Housing Finance 11 Commercial Banks and Housing Finance 14 Specialized Financial Institutions 14 HDFC and Housing Finance 15 National Housing Bank 15 Housing and Co-operative Sector 16 The Primary Societies 16 Apex Cooperative Housing Federations (ACHFs) 17 Housing Finance in India 17 Government Initiative and Future of Housing in India 21 Government Initiative to Develop of Housing Sector in India 21 Significance of Flousing in the Economic Development of Country 23 Housing Finance and Asian Financial Market 25 2.PROFILE OF HOUSING FINANCE INDUSTRY IN INDIA 36 Housing Finance during the Five Year Plan Period 38 Major Players of Housing Industry 40 Housing and Urban Development Corporation 40 The Housing Development Finance Corporation Limited (HDFC) 43 LIC HOUSING Finance Limited 44 Demand and Supply of Funds 45 Organisation and Management of Housing Industry 46 Projections of Housing Shortages 50 Regulation of Housing Finance Industry 51 Refinancing to HFC 55 Procedure of Financing 58 3. FINANCIAL APPRAISAL 62 Profitability 64 Solvency Position 72 Liquidity Position 74 Capital Structure Position 76 Assets Position 81 Cost of Operation 86 Comparison of Important Financial Aspects 93 Conclusion 104 4.OPERATIONAL APPRAISAL 107 Purpose of Loan 110 Eligibility for Loan 112 Processing Fees 114 Administrative Fees and Commitment Charges 115 Security for Loan 117 Insurance 119 Penalty for Pre-payment 119 Margin Money 122 Loan to Project Cost 123 Maximum Loan Limit 124 Minimum Loan Limit 126 Maximum Term for Loan 126 Sanctioning Period 129 Disbursement Period 130 Interest Rates 130 5.ORGANISATIONAL APPRAISAL 134 6.EMERGING ISSUES 156 Appendix 175 Bibliography 176 Index 184