Formal housing finance outreach and the urban poor in India

Purpose - Access to housing remains high on the agenda of the governments in the developing countries. One of the responses to low income housing access is by making the housing finance conduits reachable to the poor. But is this objective really achieved? The purpose of the research paper is to evaluate the access of formal housing finance specifically in the context of the urban poor in India. Design/methodology/approach - The purpose of the research is achieved by conducting a review into the available literature as well as drawing inferences from data in order to support the argument that the formal housing finance structures in India are failing to deliver to a majority of the population and primarily the urban poor when it comes to providing access to equitable housing. The paper uses qualitative method of research and analysis and presents the analysis in a descriptive approach. Findings - Based upon a comprehensive review of literature in terms of work of other authors, reports and documents, the paper generates evidence and critically examines the context of housing finance provision for the urban poor in India. It is found that the housing finance set‐up favours the higher income groups and sidelines the low income groups, largely due to the prerequisites for accessing housing finance. Practical implications - The research is perceived to be useful to policymakers and government organizations engaged in social housing to reflect on the fact that despite efforts, the outreach of finance is not adequate. It shall motivate them to re‐examine their credit policies and devise innovative mechanisms for housing finance delivery to the low income groups. Originality/value - The paper presents a thorough and critical review of the housing finance structure with focus on the urban poor using current trends. It reflects on the issues and evidence so generated during research. The paper shall be useful to researchers in social housing and housing finance as well as decision makers in the Government in India and as a reference case for other countries in the developing world.