The Association of Builders and Developers (Abad) has suggested that the government should securitise loans given by banks for those who cannot provide documentation.
Insurance companies be allowed to charge premium on such deals.
In a report of impediments to the growth of Housing, the association noted that securitisation of loans is a must and the process should be simple and expeditious.
The association proposed that guidelines for developers financing should be developed in consultation with the industry.
The association further suggested that providers of infrastructure should be penalised if they fail to provide the service within the given time frame.
The association proposed that the government should allow insurance companies, pension funds, provident funds to invest in rental housing. Abad suggested establishment of real estate investment trust for raising funds for the construction industry.
The association proposed that the availability of loans should also be made available for improvement of area, especially infrastructure and services.
The association noted that no financing is available to the developer and without developer no mass housing is possible.
Abad pointed out that non-availability of debt swap arrangements of loans is also contributing towards the snail pace growth of housing finance.
The association further pointed out that almost all the banks have developed a negative list both in terms of profession and area, notwithstanding to the facts that persons falling in these professions or are the most needed for financial assistance for acquiring of housing unit.
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