Housing Finance

PROJECT FINANCING

This stage of the project cycle involves securing finance for the project, either through the Government budget, or through aid donor funds. Once new projects have been approved, discussions are held with donors to secure their commitments to funds the projects. At a later stage, projects that have not secured donor funds are forwarded for financing in the budget.

HOUSING FINANCE

Housing finance is done by state government departments like Tamilnadu Housing Board, Tamilnadu Slum Clearance Board, Tamilnadu Police Housing board (TNPHB), and development banks, provident fund loan (PF house loan), housing finance for group housing scheme for Aadhidravider development, building centre at all district collector offices. Privateorganization,  limited  companies  are  also granting  loans  for  housing but  the          interest        rate  for  finance is higher than  other central and state Govt.department.

Central Govt. departments like HUDCO, HDPC, LIC etc also grant loans for housing projects.

Banks

All nationalized and private banks also provide housing finance facilities. All the State Govt., Central Govt., private, departments and bank provide housing finance it purchasing land

To construct new houses

To purchase a flat in an apartment

To purchase an individual houses

To extent or additional construction

To repair or maintain the houses

For land development by layout formation

It also provide housing finance for facilities like water supply, power supply, arrange

road facility, communication and common facilities line park, playground, indar stadium, recreational club etc

The housing finance is investing the money carrying out any housing project. Various methods are:

1)                Rent supplement.

2)                Long term low interest loans

3)                Public subsidized housing

4)                Tax reliefs

5)                State insurance for home mortages

6)                Mortages - pledging of land or any property to the bank for getting loan.

HUDCO, HDFC, LIC, GIC (General insurance corporation housing societies, Bank,

Private loan facilities for the people intending to construct their houses in a housing project.)