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Housing Finance by State Bank of India

Housing Finance by State Bank of India

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Housing plays a crucial role in the economic development of a nation, both as an end and as a means. As an end, housing is an essential ingredient in the basic requirements of a civilized living; as a means, besides adding to national income, housing acts as a strong motivator of savings and plays an important role in the generation of employment. It is closely linked with the overall socio-economic development in the society. As the World Bank Housing Sector Policy Paper observes, housing is important for development in both economic and welfare terms. For all but the wealthy acquiring a house is usually the major role of family saving efforts. Investment in housing represents 20 to 30 per cent of fixed capital formation in countries with vigorous housing activity and it is increasingly recognized as a profitable investment item, yielding work. In countries with under-utilised labour, material and financial resources, housing can make use of such resources at low cost. The import content of housing is relatively low but the multiplier linkages and to be substantial.
A Study with Reference to Chittoor District of Andhra Pradesh