Page 20 - Banking Finance April 2016

HOUSING

2-BHK housing scheme faces fund shortage: CM Demand for housing loan
up by 21% in Gujarat
Chandrasekhar
Increase in affordability, investment
Lack of funds and interest among con- 60,000 houses at an estimated cost of by non-Gujaratis
tractors are set to become hurdles to Rs 3,300 crore. He said the govern- in real-estate and
the realisation of chief minister K ment had also proposed to build 2 lakh rise in number of
Chandrasekhar Rao's dream scheme of more houses at the cost of Rs 13, 900 affordable hous-
providing free two-bedroom ing projects have
flats to the poor. crore. What has made the propelled demand for home loans in
scheme impractical is that third quarter of the current fiscal. In
While the Telangana govern- the budget allocation is October- December quarter in 2015-
ment has promised to build much less than the actual 16, 21% more beneficiaries procured
2.6 lakh two-bedroom requirement. housing loans from banks across the
houses in the financial year state in comparison to the same pe-
starting April 1, 2016, the funds re- "The budgetary allocation riod last year.
quired for the scheme is Rs 17,200 for the two-bedroom house is less be-
crore. Finance minister Etela cause we are looking to mobilise funds According to the latest report by
Rajender, in his budget speech for from outside the budget. This means SLBC, fresh loans worth Rs 2,811
2016-17, said the government had al- the government is proposing to borrow crore have been granted to 20,091
ready given administrative sanction for mainly from HUDCO" said Etela beneficiaries during October-Decem-
Rajender. ber 2015 under direct housing fi-
nance, in comparison to loans worth
PM Narendra Modi wants fast housing Rs 1,509.79 crore granted to 16,639
beneficiaries in the same quarter last
Prime Minister Narendra Modi has di- newable energy, coal, housing and year. In terms of amount disbursed,
rected officials to expedite implemen- ports, as also the "Digital India" the growth is of 86% year-on-year.
tation of the government's promise for programme.
housing for all as also to "The affordability among the people
provide broadband to all "The prime minister was in- is on higher side. Everybody has be-
gram panchayats to facili- formed that progress of elec- gun to understand that it is the buy-
tate e-governance. trification of all unelectrified ers' market. Also amid global slow-
villages is proceeding at a down, the overall economic growth
The directions were is- rapid pace. Out of the ap- of Gujarat as a state has been con-
sued while he reviewed the progress of proximately 18,500 unelectrified vil- sistent which has pushed investment
key infrastructure sectors in the coun- lages, 6,000 have already been electri- in housing sector," said Jaxay Shah,
try, including power, oil and gas, re- fied," an official statement said. president-elect, Confederation of
Real Estate Developers' Associations
Housing.com raises funds from ex-99Acres.com head of India.
Vineet Singh
Shah said that developers and build-
SoftBank funded online real estate portal Housing.com has received an undis- ers have adopted 'less profit, more
closed investment from the former business head of 99Acres.com and the cur- business' approach which has in-
rent MD of building materials startup Buildzar Vineet Singh. At Housing.com, creased the sales.
Singh will work closely with the management team in a senior advisory role.
"Real estate developers have
"Vineet brings with him enriching experience, deep understanding of the eco- brought down the prices over the
system, and a decade of high-achieving sales leadership in the online real es- last one year. This has pushed people
tate space. On board as a personal investor, Vineet will also serve as a senior into going for home loans," said fi-
advisor to the company working closely with the management team. We be- nancial consultant Aspy Bharucha.
lieve that his association will further fuel the ambitious growth plans of
Housing.com," said Jason Kothari, chief executive officer, Housing.com.

20 | 2016 | APRIL | BANKING FINANCE