RURAL HOUSING AND INSTITUTIONAL FINANCE

THE CASE OF INDIA

   Housing is a global problem, but it is more pronounced in developing countries. Undoubtedly, housing is one of the most important basic needs of civilized life for human survival. Possession of a house is a sign of social status and privilege in any society particularly in rural settings. It is more significant for rural poor as it lays foundation of dignity, brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu. Considering this daunting problem, provision for housing for shelterless poor is a challenging task for developing countries. Hence, most of the countries have a clear policy perspective on rural housing and habitat development in order to fulfill their requirements. Moreover, it is an important dimension of development both in economic as well as welfare terms.

 

Housing has multifaceted economic and social characteristics. One of the crucial issues in improving the housing conditions in rural areas is the lack of availability and accessibility of housing finance. Several studies conducted by various governments and international agencies have analysed this issue and observed the need for improvement in the housing finance system. Thus, economic aspect of rural settlement, particularly rural housing is an important aspect of examination in order to formulate policy priority.

 

Keeping in view the enormity of the problem of housing in rural areas and particularly housing finance, this paper attempts to provide a brief overview of existing government policy and programmes pertaining to rural housing in India, including housing finance system, its structure and housing credit facilities. This will also provide a coherent picture of exiting practice. While analyzing these issues, focus will be on Indian practice and scenario. Thus, this paper will review the status of rural housing in India and role of financial institutions and initiatives relating to rural housing undertaken by the government. Data has been taken from secondary sources from the available literature, reports and documents.