Trends and Progress of Rural Housing in India (A Study through Rural Housing Schemes Monitoring by NHB)

Housing for all” is an important national agenda of the Government of India. The Rural population account for nearly 68.33 per cent of the country's total population and are the backbone of the country's economy. However, the quality of rural housing as also the volume of rural housing shortage in the country is emerging as a critical and unique challenge considering the varied dimensions of the rural landscape and lifestyle. As per the Working Group on Rural Housing for the 12th Five Year Plan, the total housing shortage in rural areas is estimated at 43.67 million units. Of these, approximately, 39.30 million units (90 per cent of the rural housing shortage) pertain to the Below Poverty Line population (BPL).

It has been understood by all that growth in the rural areas is a major catalyst for fuelling the overall economic growth of the requirements on account of larger quantum loans, long tenure and absence of collateral, proper title deeds and regular income. There is a requirement of the Banking sector including Cooperative Banks and Regional Rural Banks to step in nation. But shortage of housing is becoming a major impediment in the growth process. A major reason for housing shortage in rural areas is shortage of financing resources and thus there is a need to increase credit flow for housing and habitat development in rural areas. Some of the existing rural housing Schemes of the Central and State Government have been successful to some extent. To achieve this success National Housing Bank (NHB) played a significant role for creating a robust market infrastructure for housing finance so as to reduce the gap between demand and supply of housing and housing finance solutions particularly for the low and moderate income households in rural areas. The Bank seeks to catalyze institutional funds to reduce housing shortage in the country through various development initiatives particularly for rural housing and housing for low and moderate income households. The Bank is focused on the holistic development of the housing finance market in the country. Keeping in this view the present paper highlighted the trends and progress rural housing in India through IAY, GJRHR and RHF schemes.