Global trends, opportunities &

innovations for financing

affordable housing

Ms . RENU SUD KARNADM A N A G I N G D I R E C T O R

H D F C L I M I T E D , I N D I A

BREAKING THE MOULD

Introduction of RERA (Real Estate Regulatory Act) to safe guard customers.

Prime Minister’s flagship initiative to promote housing in India -Pradhan Mantri Awas Yojna( PMAY) – ‘Housing for All by 2022’.Government surplus land to be used to build affordable homes.

GOVERNMENT POLICIES & INITIATIVES

‘Infrastructure’ status accorded to affordable housing. Long term financing at lower rates for developers.

Introduction of 100% tax exemption on profits/gains for builders developing affordable housing projects.

RBI allows banks to issue bonds for infrastructure development and affordable housing.

GOVERNMENT POLICIES & INITIATIVES

GST and insolvency law have created an enabling environment to resolve the problems faced by this sector and propel growth.

External Commercial Borrowings/ Masala Bonds.

90% of the EPF (employee provident fund) accumulations can be withdrawn for down payment for a home and home loan installments.

The CLSS is for householdsbelonging to the EconomicallyWeaker Sections (EWS), LowIncome Group (LIG) and theMiddle Income Groups (MIG)

WHAT? HOW?

Applicable for home loans disbursed after January 1, 2017.

WHEN?

The eligible beneficiary familyshould not own a home.

WHO?

CREDIT LINKED SUBSIDY SCHEME (CLSS)‘Housing for All by 2022’

The interest subsidy on thehome loan is paid to thebeneficiary upfront through thelender, thereby reducing theamount of the equatedmonthly instalment (EMI).

P R E S E N C E L E S S L AY E R

Where a universal biometric digital identity allows people to participate in

any service from anywhere in the country

P A P E R L E S S L AY E R

Where digital records move with an individual's digital identity, eliminating the need for massive amount of paper collection and storage

C A S H L E S S L AY E R

Where a single interface to all the country's bank accounts and wallets to

democratize payments

C O N S E N T L AY E R

Which allows data to move freely and securely to democratize the market for data

INDIA STACKIndiaStack is a set of API that allows governments, businesses, startups and developers to utilize and digital infrastructure to solve India’s hard problems

towards presence-less, paperless, and cashless delivery

Source: www.indiastack.org

INDIASTACK by Numbers*

Future Estimates for the year 2020***

Growth in users from 85-95 Mn in 2017 to 160-180 Mn

Market Size from $12-15 Bn in 2017 to $80-85 Bn in 2020.(Retail loans account for 55% of the growth)

F I N A N C I A L S E R V I C E S

1 . 2 B i l l i o nA a d h a a r s i s s u e d i n 6 y e a r s

2 . 9 8 B i l l i o nA a d h a a r a u t h e n t i c a t i o n s

3 3 9 M i l l i o nA a d h a r l i n k e d b a n k a c c o u n t s

1 5 0 M i l l i o ne K Y C i n 3 y e a r s

3 0 7 . 1 M i l l i o n B a n k a c c o u n t s o p e n e d u n d e r P r a d h a nM a n t r i J a n D h a n Yo j a n a

60% growth in online home loan queries **

Source: * www.indiastack.org, **India year in search (google report), ***BCG-Google India consumer spending report Feb 2018

MOBILE FIRST APPROACH

Digital assets designed for smartphones to facilitate on-boarding and information gathering

ELECTRONIC FUND TRANSFER

Online transfer of disbursements/ payments

MACHINE LEARNING & AI

Use of technology for understanding consumer behavior and automating the under-writing rule engine

GEO TAGGED PROPERTIES

Ease search for the consumer and facilitate internal processes for valuation

TECHNOLOGY ACROSS THE AFFORDABLE VALUE CHAIN

T H E F U T U R E A W A I T S

T H A N K Y O U