A STUDY ON RBI HOUSING POLICIES AND MORTGAGE CREDIT SUPPLY WITH REFERENCE TO LIC HOUSING FINANCE

Abstract

The housing finance sector in India helps people achieve their dream of home ownership, which goes beyond mere statistics. This research examines the impact of RBI policy on LIC Housing Finance's lending practices in India. The amount of credit that LIC extends and the interest it charges are directly impacted by any changes to the repurchase rate, lending policies, or liquidity instructions made by the Reserve Bank of India. According to the research, which is based on data collected from papers and articles over a five-year period, these restrictions impact both the amount of mortgage loans and the interest rates that consumers are required to pay. For borrowers, this means that the cost of a mortgage could go up or down depending on RBI policy. Strategically, it directs the risk management and lending policies of LIC Housing Finance. The results demonstrate that the availability of house loans is a key component of monetary policies that impact people's day-to-day lives. People are able to purchase homes with the support of easily accessible financing, which contributes to economic growth. This research's findings can inform policymakers and lenders' efforts to improve the usefulness and adaptability of house loans. The analysis reveals a strong connection between the RBI's actions and the aspirations of millions of Indians to own their own houses.