PNB Housing Finance has raised Rs 500 crore by issuing bonds to World Bank arm IFC for funding its green residential projects.

Every policy relies on explicit or implicit assumptions about how people make choices. Those assumptions typically rest on an idealized model of how people think, rather than an understanding of how everyday thinking actually works.

The housing shortage in the urban areas has touched 18.78 million units, where 95% of the shortage is in the economically weaker section and low income group, says this report by the National Housing Bank (NHB).

The Ministry of Housing and Urban Poverty Alleviation has invited comments/feedback on this draft 'Model State Affordable Housing Policy for Urban Areas ’by October 16, 2013. It aims to create an enabling environment for providing “affordable housing for all” and also promote Public Private People Participation (PPPP) for addressing the shortage of adequate and affordable housing.

The World Bank has signed an agreement with the Indian government to provide a USD 100 million loan to help low-income families secure housing loans.

The paper provides a review of the literature that links housing, housing finance, and economic development. The housing sector may support poverty reduction and inclusive growth in two general ways. First, housing construction contributes

Bank Loans To Applicants Have Not Gone Beyond 20% So Far

RBI has allowed companies to raise up to $1 bn but hedging of costs could make this unattractive for borrowers

Though the Reserve Bank of India has allowed real estate developers and housing finance companies to raise up to $1 billion (Rs 5,400 crore) via external commercial borrowing (ECB), hedging of costs could make this unattractive for borrowers. "It looks very difficult to raise funds through this new window. Monitoring use of funds is going to be a challenge. Also, there is a question mark over preparation and ability for managing currency risks even through hedging," said S Srinivasaraghavan, head, treasury, Dhanlaxmi Bank.

The government is considering a proposal to allow debt restructuring for real estate projects that face delays due to sovereign clearances. It is also considering creating a sub-category of commercial real estate-housing to allow an extended repayment period to developers.

As per the current policy, any loan given to developers for non-infrastructure sectors turns into a non-performing asset (NPA) when the project gets delayed by more than six months after the date of commencement of commercial operations (DCCO) without any payment made to the lenders. The DCCO dates means the time when the developer actually commences construction after getting the necessary approvals. After this period, banks usually declare the loan as an NPA if repayments are not made for a period of 90 days.

New Delhi The special extra-commercial borrowings (ECB) window for low-cost housing projects will be subject to a cap of $1 billion to start with. The detailed norms for ECB access to this segment, which is facing a funds crunch, are likely to be announced soon, say government sources.

In August, the government had allowed designated housing finance companies and the National Housing Bank (NHB) to access overseas loans for the specific purpose of financing low-cost housing. ECB would be permitted in housing projects where 60% of the total area is devoted to low-cost houses having a carpet area of 60 sq metres, sources said.