Don't want to miss the best from Business Standard?
Thursday, December 04, 2025 | 12:52 AM ISTहिंदी में पढें
Affordable housing gets out of pocket as costs rise and hurdles persist
Despite policy boosts, land costs and lender parity issues are driving the sector off-script
 "Housing")
premium
Then, loan-to-values are higher, meaning the borrower’s own equity in the asset is low, limiting lenders’ ability to recover money with minimal credit losses. Another peeve among HFCs in affordable housing is that they do all the heavy lifting.
Is the affordable housing plot going off-script? Jatul Anand, executive director of PNB Housing Finance, says that with 1 million homes sanctioned and an additional 141,000 houses approved under PMAY-U 2.0, the scheme is expected to be the catalyst for sustained growth of the affordable housing sector. PNB Housing has embedded innovations — stepup EMIs, longer loan tenures of up to 30 years and flexible repayment options — that “make it more inclusive, especially for first-time homebuyers and new-to-credit applicants”.
But the ground reality is different. As Anuj Puri, chairman of Anarock Group, sees it: “Affordable
