Recognising the growing role of affordable housing in promoting sustainable and inclusive economic development, this article provides a snapshot of the various aspects of affordable housing in India and also makes an assessment of the impact of Credit Linked Subsidy Scheme (CLSS) on housing affordability.
Major highlights of the article are as follows:
Rapid urbanisation and migration to cities have caused severe urban housing shortages in India, particularly for the economically weaker sections.
The Government and the Reserve Bank of India have undertaken a number of initiatives to boost affordable housing.
Responding to policy efforts, affordable housing is currently driving home loan growth in India. While the total disbursement of housing loans by public sector banks as well as the housing finance companies witnessed a deceleration in 2016-17, there was a significant growth in disbursements for the lower slabs.
The number of beneficiaries under small value loans up to 10 lakhs increased sharply in 2016-17.
There was, however, an increase in nonperforming assets under housing loans, particularly for the lower slabs of home loans.
The credit linked subsidy scheme was found to be effective in improving the housing affordability of the economically weaker sections.
Unlocking of land in the urban areas poses a major challenge for further development of the sector.