Rural Housing Finance Sept 2014

The National Urban Housing and Habitat Policy released by the Government of India commend a multi pronged strategy for achieving the national goal of ‘Affordable Housing to All’. Hence, TCHFL as a Company intend to fund Housing Loans at maximum possible locations of Rural as well as Urban Areas across India. To achieve this objective, we have identified Rural Housing Finance as one of thrust areas in our business model. The Rural Housing Finance will give us a chance to spread our Risk and also achieve priority sector lending norms. Objective –

1.Property to fall under Rural classified area as per NHB published list –*“Rural area” for the purpose of the scheme is the area comprised in any village including the area comprised in any town, the population of which does not exceed 50,000 (as per the 1991 census). The same has been enclosed in last sheet of the presentation, please go through it and you may find details of the rural locations around your hub locations. 2.The Maximum loan amount eligible under RHF Scheme is INR 15 Lacs, with ceiling of Rs.5 lakh towards extension and renovation. Product Criteria –

3. Women to be owner / co owner of the property (Or) The borrower belongs to notified Minority Community (Muslim/Christian/Sikh) as per notification of Govt. of. India (Or) The borrower belongs to SC/ST segment – Any one criteria to be met. 4. The scheme is applicable for all fresh property purchases (new purchase / under construction/ self construction) and not applicable for balance transfer & Resale Purchase loans.

Classification of Individuals Eligible under RHF – The Direct Housing Loans (no BT cases) upto Rs.15 lakh disbursed to individuals of following categories in defined rural areas would be eligible as Rural Housing Finance: (a) Small and marginal farmers with land holding of 5 acres and less, and landless laborers, tenant farmers and share croppers; (b) Housing Loans where woman is one of the owners/ co-owners of the property (this condition has been recently revised)

Classification of Individuals Eligible under RHF – (c) All individuals eligible for loans under SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY) and Differential Rate of Interest (DRI) i.e. classified as BPL or marginally above the poverty line. (d) Scheduled Castes, Scheduled Tribes & (e) Persons from minority communities as may be notified by Government of India from time to time.

7 Case Studies - 1.If a female client owning a non agricultural plot in a rural classified area, wants to construct a house on that plot and has applied for a construction loan worth 12 Lacs with TCHFL; Can we fund such a case under rural housing finance? 2.If a case is meeting all the rural criteria, but if the property is falling under Negative Area or if client’s profile is Negative, can we fund such a case under rural housing finance?

Answers to Case Studies - 1.Yes we can fund such a loan. 2.No we cannot fund loans (whether RHF or not) in Negative Areas. Also, funding to Negative Profiles is restricted under RHF.

Incentive Payout (AHF Business) The maximum capping should be Rs 65,000 for all the levels including J grade. AHF Resources : J Grade Payout Structure Volume in LacsIncentive % 0100Nil % % > % AHF – CRE / Sr.CRE / CRO Payout Structure < 1 YEAR>= 1 YEAR NO OF FILES AMOUNT PER FILE NO OF FILESAMOUNT PER FILE 02Nil

List of Rural Locations -

Thank You & Happy Selling