Sanjay Shukla: India created separate mortgage market for low-income groups

In India, housing subsidies are aimed at supporting economically vulnerable groups, while housing for high-income groups is sold at market prices, Sanjay Shukla, Managing Director of the National Housing Bank of India, said during World Urban Forum 13 in Baku.

Report quotes him as saying the government should define the goals and agenda, while land distribution and the work of municipal authorities fall under the responsibility of local governments.

"Each participant plays an equal role. However, there was one missing link - mortgage lending institutions. In lending, everyone seeks to work with high- or middle-income borrowers, while economically vulnerable groups remain overlooked. In 2007, we solved this problem: mortgage companies emerged that specialize in lending to the urban poor and low-income groups," he said.