Page 292 - economic review

INFRASTRUCTURE264

5.213 For more details please seeChapter 5 on Urban Infrastructure.

Box 5.17
Central Government& Housing
In Union Budget 2014 Govt has extended additional tax incentive on home loans provided to
encourage people, especially the young, to own houses. Government has allocated ` 4000
crores to National Housing Bank (NHB) to increase the flow of cheaper credit for affordable
housing to the urban poor/EWS/LIG and to set up mission on Low Cost Affordable Housing in
the NHB. In Rural Development also an attractive allocation of `8000 crores has been given
to N H B to support rural housing.

Banking Sector and Public Housing

5.214 Banking sector in Kerala plays an important role in the housing scenario of the State.
Nationalized Banks have contributed the biggest chunk of housing loans in the state. It is estimated
that about 50% of the total housing stock is assisted by Banks and other Housing Financial Institutions
in the State. As of June 2014 the State Bank Group is the leader in housing and the total advance
outstanding in this sector comprises of an amount of `11839.26 crores against 194678 housing
loan accounts. The Nationalised Banks have an outstanding advance of `7238.67 crores against
159079 loan accounts in housing sector. The Regional Rural Banks in the State have an outstanding
advance of `783.79 crores against loan account of 28322. The total loan outstanding in housing
sector by Public Sector Banks, as on June 2014 is `19861.72 crores against 382079 loan accounts.
The Private Sector Banks in the State have also played a dominant role in the housing sector growth.
The advance outstanding in housing sector by all private sector banks is `3907.11 crores against
75897 loan accounts.
5.215 The Kerala State Co-operative Agricultural and Rural Development Bank Ltd. (KSCARDB)
has financed for housing purpose to its members in the State with the refinancing facility from
NABARD for new construction, purchase and repairs. The bank has financed housing loans in the
State uniformly through its 46 member primary banks irrespective of any discretion like area, sector
etc. Advances outstanding in co-operative housing sector as on June 2014 is ` 5824.69 crores
against an account of 306034 cases.
5.216 Interest rates on housing loan of different financial institution is given in Appendix 5.65.

Kerala State Planning Board