Need for Affordable Housing
As per 2011 census, During 2001-2011, the urban population of India grew at a CAGR of 2.8%, resulting in the increase in level of urbanisation from 27.81% to 31.16%. This growing concentration of people in urban areas has led to problems of land shortage, housing shortfall and congested transit and has also severely stressed the existing basic amenities such as water, power and open spaces of the towns and cities. According to the 2011 census, the housing stock in urban India stood at 78.48 million for 78.86 million urban households.
The urban housing shortage in the country at the end of the 10th Five-Year Plan was estimated to be 24.71 million for 66.30 million households. The group further estimated that 88% of this shortage pertains to houses for Economically Weaker Sections (EWS) and another 11% for Lower-Income Groups (LIG). If the current increase in backlog of housing is maintained, a minimum of 30 million additional houses will be required by 2020.
Au Housing Finance approach
Company presence in rural and semi ubran areas and connect to lower income and middle class customers who are unserved, unreached, under served and provide huge opportunities for Au Housing Finance to address housing needs of low-income groups, self-employed individuals and salaried class Persons in rural or semiurban & urban locations.
Above are customer segment where all financial institutions don’t not have penetration and demand for above segments are most pressing and supply of credit is not sufficient.
We are expanding our reach and going into deeper pockets of state of Rajasthan and in coming years, we shall expand in Maharashtra, Madhyapradesh, Gujarat and Haryana.
Our Efforts & Results in Affordable Housing Finance
- Au Housing Finance is focused on financing to lower ticket size Housing loans and around 90% of loan portfolio is less than Rs. 10 Lacs.
- More than 50% of housing loan portfolio of Company is eligible for classification under Lower Income Group and Economically Weaker Section.
- more than 70% of customer segment is one whose income to EMI ratio is less than 40% Above customer segment has been thrust areas for Government of India, State Government, and NHB. Announcement of affordable housing policies by State Governments including by Govt. of Rajasthan is right move forward where participation of developers and financing institutions shall stimulate demand for unserved, unreached customers in coming years.