Abstract

The case examines the developments in the housing finance industry in India in the early 21st century. The reasons for the rapid growth in the industry that gathered pace during the late-1990s are explored in detail in the light of the entry of many commercial banks and other private sector companies into the business. The case also describes the reasons behind the emergence of marketing initiatives as a tool for competitive advantage in the industry. The possible negative impact of the tax reforms that proposed to remove the housing finance related tax benefits in early-2003 are discussed. The case also provides information about a few basic concepts related to housing finance.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Floating and fixed interest rate loans
• Housing finance.

Keywords

Buyback developments, housing finance industry, India, 21st century, 1990, entry, commercial banks, private sector companies, reasons, marketing initiatives, tool, competitive advantage, negative impact, tax reforms, finance, tax benefits, 2003