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A-rural housing scenarioB- Sarva UP rural finance initiatives
Y P Issar
A. RURAL HOUSING SCENARIO
1. RURAL POPULATION
1. RURAL HOUSEHOLDS
1. RURAL HOUSES
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2.Rural Households Rural households were 9cr,11 cr and 14 cr in 1981, 1991 and 2001 respectively
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Indian Population
Year 2001
103 cr
Year 2026
140 cr
Urban
Rural
28%
72%
38%
62%
Age Group(20-45 yr) 36.6% 40%
Urban Population 29 cr 53 cr
Rural Population 74 cr 86 cr
Increase in Rural Areas -- 12 cr
Rural Households 14 cr
Household Size 5.504supgb
3. Rural houses…….Average area of a rural house 64 sqm
35% app. had over 50 sqm area-10% app. had over 100Sq.m area (In 1993 ,
this percentage was 15%)About 32% were constructed more than 20
years ago.Land holding per capita in rural areas higher
than urban areas- construct on their own land.
95.4% own their homes
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3. Rural houses…….Gap in desired and actual qualityHouses classified as pucca, semi pucca,
kutcha Share of pucca houses increased from 18.5% to
35.4% from 1971 to 2001 68.5 % live in one or two room houses
-39.85 %in one room houses
For average household of 5.2 persons, house size is small.
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3. Rural houses……..Structural condition of rural houses-2001
5.81 cr(45%)and 0.25cr(42.2%) of residential and nonresidential houses in good condition
6.28 cr(48.7%)and 0.32cr(53.3%) of residential and nonresidential houses classified as livable
0.81 cr(6.3%)and 0.03cr(4.5%) of residential and nonresidential houses in dilapidated condition
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3. Rural Houses…….Exclusive Amenities-2001
Access to safe drinking water- 80.5% ( 26.3% in 1981)
Access to exclusive toilets- 26.3%
Electricity connection-43% (14% in 1981)
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B. Sarva UP- rural finance initiativesSarva UP Gramin bank-an introductionCapital plus reserves=Rs 142 cr Deposits=2630, advances=1500 cr Net profit(PAT) = Rs 26.47 crDeposit/advances accounts 22 lakh/3lakh
respectivelyGross/Net NPA 2.89%/0% respectively295 branches/1200 persons/13 districts in UPCASA =83% second highest amongst all RRBsCost of deposits: 4.16%
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Our rural housing finance portfolioOur cumulative disbursements=1648 accounts Rs1882 lakhs
Current year disbursements=305 accounts Rs 515 lakhs
Outstandings1417 accounts Rs 1317 lakhs
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Schemes for financing rural housesGJRHFSFINANCING TO Kisan Credit Card (KCC)
holdersOther borrowers
Most of the loans are linked with the holding of agriculture land
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Amount of LoanGJRHFS
Construction of new dwelling units=up to Rs 5.00 lakh Most of loans given up to Rs 2.00 lakh
Up gradation/major repairs= up to Rs 1.00 lakh No loans given under this
KCC holders-Rs 2.00 lakh in addition to crop loan Few loans given under this
Others= need based
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Loaning Powers
Rural sitesup to Rs 5.00 lakh by branch managers
up to Rs 30.00 lakh by higher authorities
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Rate of Interest(%)Period of loan : floating rate fixed rate
Up to 5 years 9.50 10.00
Up to 15 yr 9.7510.25
Max= 10.50 % up to Rs 30 lakh
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Other charges Processing fee:
1% of loan amount for loans above Rs 25000
Issue of balance /interest certificate: Rs 50 per certificate
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RepaymentGJRHFS
Maximum 15 years Mostly for 10 years
OthersMax 25 years
Moratorium period:Maximum 18 months
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Margin/Security Margin:Fifteen percent of cost of construction
SecurityPrimary: mortgage of the house
/hypothecation of other assetsorCollateral: Regd mortgage of agriculture land
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UP Agricultural Credit Act 1973
Construction/repair/extension of a house on abadi land in rural area for personal use shall be deemed as an agriculture purpose, for the purpose of this act
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Other aspectsReasonable growthLimited to few pocketsSo far low focus on this activityLack of awareness amongst publicFarmers using highly subsidized (5%) KCC
funds for housingNot covering non farmers/salaried class/low
income/disadvantaged groupsNeed product differentiation as per segments
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Other aspects ….Need to have specialized loan processing manpower
High potential available in the command areas
Average amount per loan to be enhanced
Proposing housing finance hubs at Noida/Ghaziabad/Meerut/Jhansi
Proposing score based model for sanctioning to reach scale
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A few suggestionsApplication of interest be allowed up to
annual basis depending on the harvesting of crops in stead of monthly basis as recently allowed in gold loans.
Asset classification norms for rural housing loans be allowed as applicable to Agriculture advances as the repayment is mostly based on proceeds of crops.
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A few suggestions……Clean housing loans up to Rs 50000 be allowed
for those having assured income eg salaried /self employed who have no other assets to mortgage.
A Credit Guarantee Scheme for small housing loans can help to cover larger number of low income households.
1991 census limit of 50000 population be shifted to 2001 census base with higher population level.
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A few suggestions…….
GJRHS be given common publicity in vernacular press
NHB refinance be allowed on portfolio basis removing loan wise clauses from Memorandum of Agreement especially for small loans up to Rs 10 lakhs
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A thought
With 96 % home ownership, rural people are investing short term funds for housing sector.
More rural housing finance can help have major impact on their life styles.
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Thank you
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