Micro-housing finance boom hits roadblock due to liquidity crisis

In the past two to three years, close to 15-20 firms are focusing on lending to the informal sector.

Affordable housing finance, which was witnessing a boom in the past few years, has hit a roadblock due to a liquidity crunch in the non-banking finance. The worst-affected is the Micro-housing finance one. The firms are facing the heat of the IL&FS crisis. In the past one year, there had been a steep growth in micro-housing loans, or loans below Rs 500,000. 

 

While some of the bigger firms have enough liquidity to meet the disbursement needs, the smaller ones, particularly the ones which had started