Private housing finance in India: Reaching down-market?

Indiaʹs economic liberalisation and financial reform policies determine its housing finance sector, which is developing and expanding, particularly in the private sector. The housing finance market is regulated and supervised by the National Housing Bank, which tries to stimulate housing finance corporations serving the small man. The reasons why the attempts of down-marketing housing finance through the private sector are not as successful as may be expected are highlighted. This case study shows that the potential of down-marketing housing finance anticipated by neo-liberalism is rather limited. Furthermore, it teaches us lessons which may be useful for the development of the housing finance market in other developing countries.