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Rural Housing Finance: Impediments and Way Forward

Author Affiliations

  • 1Post Graduate Teaching Department of Economics, RTMNU, Nagpur, MS, India
  • 2Post Graduate Teaching Department of Economics, RTMNU, Nagpur, MS, India

Int. Res. J. Social Sci., Volume 5, Issue (12), Pages 47-51, December,14 (2016)


Housing is one of the basic needs of man and is also considered a fundamental human right. In recent times, it is used as a key indicator in defining the living quality among the poor sections of the society. Hygienic and dignified living is a challenge for poor across the world and is further aggravated in case the housing is not appropriate. Not just from the fundamental rights point of view but also from the point of view of hygienic and dignified living condition it is important to improve housing conditions for the poor. The criticality of proper housing is most acutely felt in the rural areas, urban slums and poorer sections of the developing countries. Kutcha and semi-pucca houses often lack the ability to provide clean running water, sanitation, sewage removal and other amenities that are closely associated with elementary health. In India, specifically in rural India, there are considerable constrains in creating decent shelter for the poor. This is further compounded by the lack of successful initiatives in creating access to housing finance. The paper focuses on rural India, where the shortage for rural housing loans is believed to be very high in the light of inadequacy of government housing program along with failure of traditional mortgage finance. It also looks at Housing Microfinance as a possible solution along with additional suggestions to increase access to rural housing finance.


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