OVERVIEW OF HOUSING

FINANCE INDUSTRY
- Housing finance connotes finance (loans) for meeting the various
needs relating to housing, namely:

a) Purchase of a flat or house

b) Purchase of plot and construction of a house
c) Construction of a house
d) Extension of a house
e) Repairs, renovation and up gradation of a house/flat
f) Loan against Property
 INDUSTRY ATTRACTIVENESS

• Fast Pace of growth

• Govt. support ( in terms of subsidy etc)
• Growth in the urbanization and nuclear family system
• Growing population
•Regional shifts and Increase in working force
• Fiscal concessions (Rebates in Income Tax etc)
The Importance of Housing Finance is owing to the
following attributes :

• Primary necessity in every economy

• Basic Indicator of Growth and Social well-being
• Tool for Economic Development as it accelerates other industries
too
• Generation of Employment
• Determines Quality of life, education and health factors
•Taking part in financial sector liberalization
URBAN HOUSING OPPORTUNITIES
Rapid Rate of Urbanization

Rapid increase in Urban population at more than 30%

The shortage in urban housing has been estimated at close to 19

million dwellings
OVERVIEW OF REAL ESTATE MARKET
 REAL ESTATE INDUSTRY
Fourth largest sector in terms of FDI inflows

Rapid urbanization bodes well for the sector

India’s real estate sector’s market size is expected to increase1.92 times

by 2020

FDI in the sector is estimated to grow to USD25 billion by FY22

The number of Indians living in urban areas will increase from the 434
million in 2015 to about 600 million by 2031

India’s real estate sector’s market size is expected to be USD180 billion

by 2020 from USD93.8 billion in 2014

The Smart City Project, where there is a plan to build 100 smart cities, is
a prime opportunity for the real estate companies
• Notification of Real Estate Investment Trusts (REITs) and
infrastructure investment trusts (InvITs). This move will enable easier
access to funds for cash-strapped developers and create a new investment avenue for
institutions and high net worth individuals, and eventually ordinary investors.

Passing of Real Estate Bill:

• Real Estate Regulatory Authorities (RERA) - in every state,
• A real estate project needs to be mandatorily registered,
• 70% of realization from allottees in a separate bank account,
• Sale of property will be on carpet area,
• Both buyers and the builders will have to pay the same rate of penal
interest for delays,
• No change in plan without consent of 2/3rd of allottees,
• Any grievance/complaint has to be resolved by the state RERA within
60 days.
• Builders will be liable for any structural defects occurring within 5
years of the date of possession.
 ADVANTAGE INDIA
Robust Attractive Increasing
Policy support
Demand opportunities Investments
• Increased • Growth in other • FDI in construction • Govt. allowed FDI
Urbanisation sectors such as Development of up to 100% for
education and USD 24.156 billion townships and
• Rising household healthcare between Apr’10 settlement
income and Sep’15 development
• Growth in tourism projects
• 35% population in promoting • During Apr’10 and
young age bracket opportunities in Sep’15, the real • 4 Cr houses in rural
hospitality sector estate sector area & 2Cr houses
accounted for 9% in urban area by
• Growing economy of total FDI inflows 2022 under
driving demand for into India HOUSING for all
commercial and scheme
retail space
Introduction of LICHFL as an
organization
• Promoted by world’s premier financial institution, LIC of India in
1989; IPO in 1994, GDR issue in 2004
• Listed on BSE, NSE & Luxembourg Stock Exchanges,
• Over 97% of loan assets in retail category,
• Over 20 lac satisfied customers,
• Rated AAA ( for Debentures) & FAAA (for Fixed Deposits) by
CRISIL,
• Holds 100% stake in LICHFL-FSL, LICHFL AMC, Holds 100% in
LICHFL Care Homes,
• Entered into MOU for a stake in LIC’s credit card venture.

Contd..
• Awarded Best Housing Company in Home Finance in 2012, 2014
& 2015.
•Awarded Best Brand of 2015-16 in NBFC category by Economic
Times, also most compliant PSU.
• A profit making and consistently dividend paying company since
1990, first year itself.
• Having portfolio of aprx 1.25 lac cr. & Lowest NPA in the industry,
• Representative overseas presence in Dubai and Kuwait.
• All India presence, 7 Regional offices, 21 Back offices, 241
marketing offices.
Competitive Advantage for LICHFL

1. Strong parentage and Brand recall.

2. Transparent systems and procedures

3. Competitive interest rates.

4. Doorstep service through HLAs, DSAs and CRAs.

5. Quick approval and disbursals.

Our Strengths:

• Maximum loan term of 30 years

• No hidden charges
• Minimum processing charges
• No commitment charges
• No prepayment charges
• Quick disposal of files (sanction in 3 days and disbursements in 7
days) with minimum TAT.
• Interest calculated on monthly reducing balance
• Repayment through salary deduction/ECS
• Joint loans with father-son, mother-son, Brother-brother etc are
also accepted.
• Loans to qualified professionals are given on latest ITRs.
Understanding the
Market
• Where is the market???????

• Where to go for marketing of

housing loan products????????

• POTENTIAL MAPPING…….!!!
Demand Side

Service Class: Presentations in Govt & Pvt Institutions,

colleges, Corporates & companies etc for bulk business

Businessman: For GV, home loans, Loan for personal needs

Self Employed professionals: For office, hospitals, home loans

etc.
Supply Side:
• Builders: For APF & leads

• Property Brokers: for leads

• Government bodies like Dev. Authorities & State

housing boards for direct allotment cases
• Residential societies for GV loans
• Bridge between the inventories and the market (e.g.
small / big groups, Employees (Govt & non-govt)