India has directed banks’ lending shortfalls toward housing finance, Sanjay Shukla, Managing Director of the National Housing Bank of India, said during the session titled “A New Deal for Housing Finance” held within the framework of WUF13, APA-Economics reports.
He stated that the Indian government has created an innovative mechanism for housing finance, and funds generated from the portion missing in banks’ lending to the private sector have been directed to the housing sector with a concessional interest rate of 4%.
Sanjay Shukla noted that through this mechanism, the funds have been increased by 5-7 times and directed toward lending for low-income populations.
According to him, 29.5 million houses were built in India between 2014 and 2019, and the construction of another 30 million houses is planned in the next stage.
Sanjay Shukla added that 85% of housing finance in the country is formed through domestic savings, taxes and innovative financial mechanisms created by the state.
