Product details

The case examines developments in the housing finance industry in India in the early 21century. The reasons for the rapid growth in the industry during the late-1990s are explored in detail. The case also examines the emergence of marketing initiatives as a tool for competitive advantage in the industry. The possible negative impact of tax reforms that propose the removal of the housing finance related tax benefits (the Kelkar Committee recommendations in early-2003) are discussed. The case also provides information about a few basic concepts regarding housing finance. The case is structured to enable students to understand: (1) the nature and the dynamics of the Indian housing finance industry and the various players involved; (2) the role played by fiscal concessions and government policy in accelerating the growth of the Indian housing finance sector; (3) various concepts related to housing loans, such as floating and fixed interest rate systems, the concept of equated monthly installment (EMI) and the procedure for calculating EMI for housing loans; (4) problems that an industry could face due to unfavourable tax reforms; and (5) the need to shift the focus from offering ''cheapest'' loans to superior customer service and marketing activities to withstand increased competitive pressures. The case is aimed at the MBA/PGDBA students as part of the finance, accounting and control curriculum. The teaching note does not contain an analysis of the case.