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Summary No-13
Profile of the Student:
Name: Elakkiya V.
Degree Programme : MA (Economics)
University / Institute: Loyola College, Chennai
Profile of the Mentor:
Name: S.Srinath
Designation: DGM
Department:DOR
Name of Regional Office: Tamilnadu (Chennai)
Objectives of the Study:
• To Study the importance and scope of rural housing.
• To find out the source of income of rural people on housing.
• To have an overview on role of key financial players supporting rural housing.
• To summarize the various schemes of government for rural housing.
• To have an insight into the problems and challenges of rural housing.
Research Methodology:
The methodology adopted for the research included compilation and analysis of both secondary and
primary data. The project includes the study of Quantitative and Qualitative Data.
A. Primary Data: First hand information collected from the field survey conducted with the rural
people by the distribution of structured questionnaire from the Bank Managers, Housing Finance
Companies, Panchayat President, NGO’s and District Rural Development Department by the
interaction with them.
B. Secondary Data-The Secondary Data sources include information collected fromwebsites, published
reports and articles,Report on working group on Rural Housing, 12th five year plan, IAY financial
Reports, etc.,
C. Agencies Contacted:(i) Banks:- Pandyan Grama Bank, Virudhunagar, Indian Overseas Bank, Sathur
Branch & Madurai District City Cooperative Bank (ii) HFCs:- Mahindra Rural Housing Limited,
Chennai & Equitas Housing Finance Limited, Chennai (iii) NGO:- DHAN Foundation, Madurai &
(iv) 45 respondents from Anaikuttam and Virudhunagar villages.
Major Findings & Observations:
• National Housing Bank (NHB) provides the refinance to Housing Finance Companies (HFC’s),
Scheduled Commercial Banks (SCB’s), Cooperative Banks, Regional Rural Banks (RRB’s). On
analyzing the refinance pattern of NHB from 2009 to 2014, it is observed that the SCB’s and HFC’s
are largely refinanced by NHB with HFC’s raising as a dominant Key financial player in the Housing
Market in recent years. Thus HFC’s should be encouraged for creditability and to be financially
supported with sustained growth rate for long time period.
• The refinance share by cooperatives and RRB’s is less than 3% of the total refinance of NHB. Thus
there is an imperative need by these institutions to boost the lending at the grass-root level. For this,
they can even adopt the conventional strategies of refinance like approaching higher institutions like
NABARD & NHB.
