Housing or shelter is one of the pre-requisites for human survival besides food and clothing. It assumes great significance for every Indian by laying the foundation for a life of dignity for them and conferring a distinct, secure identity. Economically, the housing sector has long been recognized as engine of growth and driver of economic development through its numerous backward and forward linkages with various other important sectors of the economy that propel capital formation, income generation and employment creation.
Addressing housing shortage is thus an important developmental strategy in India. The 2001 Census places the rural housing shortage figure in India at 148 lakhs while the housing shortage in urban areas has been estimated at about 24.7 million units at the end of the 10th Five-Year Plan (2006-07). Ninety-nine per cent of this pertained to the economically weaker sections (EWS) and low-income groups (LIG). Thus, the major challenge facing the policy makers and implementing agencies is providing affordable housing to a vast segment of population. The role of government has always been that of a facilitator with some supply side intervention through state-run agencies while the demand side remains mostly market driven. A significant portion of the EWS & LIG populace still remains vastly outside the formal financial sector network, the policy of economic inclusion not withstanding, as the lenders perceive a higher risk for this segment owing to cyclical nature of their income particularly in rural areas, other associated legal problems, such as non-availability of clear title deed, permissibility of agricultural land for housing etc.
The National Urban Housing & Habitat Policy 2007 seeks to promote public-private partnerships for realizing the goal of Affordable Housing for All with special emphasis on the urban poor. The new policy had been formulated keeping in view the changing socio-economic parameters of the urban area and growing requirement of shelter and related infrastructure. Given the magnitude of the housing shortage and budgetary constraints of both the Central and State governments, the policy focused the spotlight on multiple stake-holders namely, the private sector, the cooperative sector, the industrial sector for labour housing and the services/ institutional sector for employee housing. The policy also favoured promotion of micro finance institutions at the state level to expedite the flow of finances to urban poor.
At Repco Home Finance Limited it is our mission to translate into reality the aspirations of people to own a house by covering the market existing and potential comprehensively through institutional credit support customized to suit individual needs in a transparent and ethical way. It has been our constant endeavour to serve the unprivileged and the underprivileged sections of the society by utilizing their huge untapped potential, which still lies largely excluded from the formal financial network. Since inception we have been significantly contributing to the Golden Jubilee Rural Housing Finance Scheme of National Housing Bank-the apex institution for housing in India, which aims at providing institutional finance for affordable houses in rural / semi-urban areas. We believe that sustained growth in the Indian economy will result in urbanization and significant development in tier 2 and tier 3 cities, and our Company is expected to benefit from this trend. We have, in the past, financed several affordable housing schemes such as residential houses for workers at engineering units in Yelahanka, Karnataka and for industrial workers at Karur, Tamil Nadu.