Affordable Rural Housing Loan

The rural housing market in India has changed. Urbanization is creating development in previously forgotten parts of the country. As a consequence, India has had an undeveloped financial market, in the absence of any institutional lenders.

Now not only have institutional investors finally set up shop, they are finally pioneering loan against property in rural areas. People in these parts have very little in the way of paperwork. The demographic earns irregularly, around which it’s difficult to set up a recovery schedules. For many, their only source of security might be immovables they can’t afford to lose, like cattle or craft tools. 

However, the more astute of financial services firms have found an easy way to get around changes in the pay routines. The firms who have excelled have done so on the back of offering affordable loan against property in rural areas, under whose aegis they could safely take their first step into financial inclusivity. 

To be in debted still carries old stigmas. But transparency by the lender assures the loanees that the process is fair. There is also an interest in seeing customers settle into their new homes fast, which gives them a sense of responsibility.

What these financial institutions slowly making headway into the hinterland proves is that there is a huge market waiting to be exploited, provided enterprises can have the business nous to sidestep the regulatory holes that are a holdover from a past when the financial infrastructure was threadbare. Now, the onus is on the service providers to in a way provide a template, a model for the regulators to analyse and standardise.

Fortunately, the technology will only get better, so the processes will keep getting faster and more efficient. The only question for financial institutions, willing to control risk while continuing the great expansion, is to ascertain how they can keep adding value, as first rural homeowners scale up their needs and ambitions and with it, grows their financial needs and demands.

In the meantime, rural housing finance companies are certainly setting a new template, showing how foreign financial tools can be adapted to a more wild, unregulated market, like India. For more details please log on Affordable Rural Housing Loan to https://www.aavas.in/