This is a bit of digression from the main question about usefulness of 'equal credit opportunity' policies; but I found these two reports to be very informative about housing finance demand in India current state of play. Thought, I will take the liberty of sharing it with you. The second report also talks about 'community based' model in the State of Kerala.
Thanks,
Anuj
Housing Microfinance in India: Benchmarking the Status (Jan 2014)
Vibhu Arya
(page 54) India remains primarily rural, with 68.4% of the population in rural areas, where housing is often a challenge. One out of every five rural households is living in poorly constructed buildings made of mud, thatch, grass or other non-lasting natural materials. Urbanization, however, is on the rise, bringing with it new issues in terms of poverty and housing. Urban poor often live in slum areas, where no adequate housing is available. With an increasing and urbanizing population, this shortage can be expected to grow. In India there is inadequate housing finance at lower segment resulted in huge gap in demand and supply of housing credit. Economically weaker and low income families who are interested in home ownership face the following problems, such as:
Microfinance for Housing in India
Dr. Basanta K. Sahu, Centre for Microfinance Research, BIRD
The present study is based on two different housing microfinance programme in India will be useful for different stakeholders. One of the MFH programme is state government initiated and community based microfinance for housing programme financed by commercial banks in Kerala Bhavansree. The other is MFI initiated microfinance for housing in Karanataka. These two MFH programmes differ in product design, housing loan term and condition, selection of beneficiaries, pattern of loan repayment and source of fund for the lending institutions. The analysis of the study shows that demand for housing finance is high and growing faster among all income size sub-groups within low-income groups.
From: Anuj Jain
Sent: Wednesday, February 19, 2014 2:14 PM
To: MicrofinancePractice@yahoogroups.com
Subject: RE: [MFP] RE: Fw: Your Message to MicrofinancePractice
Very informative interview Bill, thanks for sharing it.
It just reminded, how house-ownership is one of very important ways in which people can escape poverty and vulnerability. There indeed is not any other asset quite like a house, where one can pay the rent to oneself by living in one's own home, and build an asset over time instead of paying rent to someone else. And yet, we hardly have touch on this in our financial inclusion agenda. Incidentally, it is also often cheapest capital to obtain because it can be secured through an asset.
Sometimes I do wonder if we have counted trees for too long in microfinance and perhaps missed the forest. The road from microfinance to financial inclusion seems too long.
Thanks for sharing it!
Anuj
From: MicrofinancePractice@yahoogroups.com [mailto:MicrofinancePractice@yahoogroups.com] On Behalf Of wmaddocks@gmail.com
Sent: Wednesday, February 19, 2014 12:03 PM
To: MicrofinancePractice@yahoogroups.com
Subject: [MFP] RE: Fw: Your Message to MicrofinancePractice
Hi Anuj,
The data that I was referring to is in this NPR story http://www.npr.org/2013/05/06/181601018/black-and-latino-wealth-falls-further-behind . To be clear no, I was not suggesting poor people should sit out of the credit system but was talking more about ways people find their own solutions when doors are closed to them. I do think more member ownership and local control is where we should be heading. While not member owned, smaller community banks in New Hampshire generally weathered the recession and mortgage crisis well because they weren't invested in the toxic products that spurred the crisis and depended on the local and regional economy which did better than some parts of the U.S. over the past several years. The bigger issue is wealth inequality in the U.S. which obviously touches most of the issues in this string.
Bill
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