The market is evolving rapidly; there is a need of reducing housing shortage in India. Living in their own house is considered to be a challenge for Middle-class people in big cities. Buying a house is not easy keeping the high property rates in mind and there are many challenges faced by home buyers in obtaining a loan. The problems faced by every home buyer while taking a loan are:
" High-Interest Rate.
" Lack of Loan history because there are young people who never had a loan.
" Getting the desired loan amount.
India Mortgage Guarantee Corporation (IMGC) offers mortgage guarantees against borrower defaults on housing loans from mortgage lenders, which will help to expand access to housing in India. The corporation works with National Housing Bank (NHB), Asian Development Bank (ADB) and International Finance Corporation (IFC) for offering mortgage guarantee.
India Mortgage Guarantee Corporation which provides lenders with insurance against a possible default in home loans closely works with National Housing Bank, a subsidiary of RBI whose mission is to promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate-income housing.
"The housing sector in India is poised for a higher growth; the mortgage guarantee can play a significant role in enhancing the flow of financing to the consumer at an earlier stage so that owning a dream home becomes a reality in early stages of life", said Sriram Kalyanaraman, CEO, NHB.
IMGC released the findings of an annual research survey Home Hunt 1.1 that focuses on trends in housing and perspectives on housing finance in India. The research provided insights into the attitudes, needs and concerns of the Indian house buyer; it was conducted across 14 cities (metros, mini metros and small towns). The research takes into account data from both people who have already bought a home and ones that are planning to buy.
Buying a house as an investment option is still the reason for many buyers. The top reasons for buying a house include 'long-term security' and 'pride of ownership'. The self-employed people show a comparatively higher intent to buy a house, resulting in a greater need for home loans possibly due to the fact that this group is underserved.
Amitav Mehra, CEO, IMGC said "The real estate developers, as well as the lenders, need to create awareness and opportunities to address these concerns of consumers to lift home ownership. All market players need to educate consumers on methods that support their home ownership dream".
The current level of home ownership, coupled with the shortage of homes in urban and rural areas clearly highlights the amount of focus that is required to deliver on the gaps.
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