YES Bank, India’s fifth largest private sector bank, has launched YES Khushi – Affordable Home Loans. This product has been designed to cater to the housing needs of the common man in the EWS / LIG segment, fulfilling probably their biggest dream of owning a house.
YES Khushi Home Loans has partnered with more than 500 builders across 35 cities and towns across India. YES Bank is also empanelled with the National Housing Bank (NHB) for dispensation of the housing loan subsidy under the Pradhan Mantri Awas Yojana (PMAY) scheme to help customers avail this subsidy scheme. A sizeable portion of the customer base has received the subsidy in the first eight months of operation. A team of more than 300 skilled professionals along with more than 150 third party channel partners are responsible for sourcing and servicing of customers, ensuring timely service delivery, claimed the bank in a press release here.
Since the product specially caters to the EWS/LIG segment, a dedicated team of underwriters has been set up in-house to process loans only for this segment. The customer mix ranges from drivers, house helps, kiranawala, peons to courier boys, security guards, the hitherto overlooked segment of the society in the lending space.
Housing shortage has always been a major problem over the years. Industry estimates state that there is an overall urban housing shortage of ~19 million units, out of which more than 90% of the demand is from the low income group (LIG) segment and below. One of the other primary reasons apart from unavailability of affordable houses is the unavailability of proper access to financial resources for buying/constructing houses for the LIG segment. Therefore, with the Union Budget, 2017 according an ‘Infrastructure status’ to affordable housing, the resulting government incentives, tax reliefs, and institutional funding for home developers would help address the issues in the sector.
Speaking about the product, Rana Kapoor, MD & CEO, YES Bank, said, “Affordable housing is a critical sector to enable India’s socio-economic development and YES Khushi Affordable Housing Loans cater to the specific needs of the EWS/LIG segments. As a participant of the Pradhan Mantri Awas Yojana (PMAY), we aim to work with the government and the National Housing Bank to make rapid strides towards the vision of Housing for all by 2022, outlined by the PM Narendra Modi.”
The primary focus of the bank is on the low cost housing, i.e loans up to Rs 28 lakh in locations with population of 10 lakh and above and loans up to Rs 20 lakh in locations having population below 10 lakh.
Some of the key features of YES-Khushi Affordable Home Loans are:
# Loans start with Rs 1 lakh to meet the housing requirement of those LIG/EWS who wish to construct their own houses and don’t need a huge sum.
# Loans shall be available for purchase of ready/ resale/ under construction/ plot plus construction, self-construction on owned plots, repairs and renovations and also balance transfers from other institutions.
# The loan can be extended up to 25 years.
# No minimum individual income norms, loans extended to individuals with family income starting from Rs 9,000 pm.
# Catering to formal, semi-formal and informal customers – both salaried and self-employed.