The Scarlet Letter By Nathaniel Hawthorne - 973 Words

Nathaniel Hawthorne’s, The Scarlet Letter, takes place in June of 1642 of the Puritan town of Boston, Massachusetts. Hester Prynne, the protagonist, is married to Roger Chillingworth. They decided to leave Europe to have a new life in Boston; unexpectedly her husband failed to join her. After two years waiting for her husband’s return, she engages a personal relationship with Arthur Dimmesdale which causes an improper affair, and she gives birth to a baby girl named Pearl. When living in a Puritan society they forced Hester to wear the letter â€Å"A† as punishment; which stands for â€Å"adulterer†. Also for another act of punishment, the community made Hester stand on a scaffold platform for three hours for public shaming. To her surprise she recognizes a person in the crowd; her husband. Throughout The Scarlet Letter, Hawthorne demonstrates the theme of guilt through the characters of Hester Prynne and Arthur Dimmesdale, but also the relationships betw een Hester Prynne and Roger Chillingworth. In a Puritan society, the people will humiliate and punish you for any sin you have commented. Puritans show no remorse if found guilty of a sin. They live by strict standards of morality concerning any and every ungodly act a person may have committed. Any sort of sexual affairs was against their morals. For any woman who cheated on her husband would be punished by the community. The punishment would be harsh and cruel. Hawthorne uses another charters voice to support my claim. At theShow MoreRelatedThe Scarlet Letter By Nathaniel Hawthorne1242 Words   |  5 PagesLYS PAUL Modern Literature Ms. Gordon The Scarlet Letter The scarlet letter is book written by Nathaniel Hawthorne who is known as one the most studied writers because of his use of allegory and symbolism. He was born on July 4, 1804 in the family of Nathaniel, his father, and Elizabeth Clark Hathorne his mother. Nathaniel added â€Å"W† to his name to distance himself from the side of the family. His father Nathaniel, was a sea captain, and died in 1808 with a yellow fever while at sea. That was aRead MoreThe Scarlet Letter By Nathaniel Hawthorne960 Words   |  4 Pages3H 13 August 2014 The novel, The Scarlet Letter, was written by the author Nathaniel Hawthorne and was published in 1850 (1). It is a story about the Puritan settlers of the Massachusetts Bay Colony, set around 1650 (2). The story is written in the third person with the narrator being the author. The common thread that runs through this novel is Hawthorne’s apparent understanding of the beliefs and culture of the Puritans in America at that time. But Hawthorne is writing about events in a societyRead MoreThe Scarlet Letter, By Nathaniel Hawthorne919 Words   |  4 Pagessymbolism in Nathaniel Hawthorne’s â€Å"The Scarlet Letter†. Symbolism is when an object is used in place of a different object. Nathaniel Hawthorne is one of the most symbolic writers in all of American history. In â€Å"The Scarlet Letter†, the letter â€Å"A† is used to symbolize a variety of different concepts. The three major symbolistic ideas that the letter â€Å"A† represents in Nathaniel Hawthorne’s â€Å"The Scarlet Letter† are; shame, guilt, and ability. In Nathaniel Hawthorne’s â€Å"The Scarlet Letter†, the firstRead MoreThe Scarlet Letter By Nathaniel Hawthorne1397 Words   |  6 PagesFebruary 2016 The Scarlet Letter was written by Nathaniel Hawthorne in 1850 which is based on the time frame of the Puritans, a religious group who arrived in Massachusetts in the 1630’s. The Puritans were in a religious period that was known for the strict social norms in which lead to the intolerance of different lifestyles. Nathaniel Hawthorne uses the puritan’s strict lifestyles to relate to the universal issues among us. The time frame of the puritans resulted in Hawthorne eventually thinkingRead MoreThe Scarlet Letter By Nathaniel Hawthorne999 Words   |  4 Pages Nathaniel Hawthorne is the author of the prodigious book entitled The Scarlet Letter. In The Scarlet Letter, Hester Prynne commits adultery with Reverend Arthur Dimmesdale. Her husband, Roger Chillingworth, soon finds out about the incident after it becomes clear that she is pregnant. The whole town finds out and Hester is tried and punished. Meanwhile, Roger Chillingworth goes out then on a mission to get revenge by becoming a doctor and misprescribing Dimmesdale. He does this to torture DimmesdaleRead MoreThe Scarlet Letter, by Nathaniel Hawthorne1037 Words   |  5 Pagesthat human nature knows right from wrong, but is naturally evil and that no man is entirely â€Å"good†. Nathaniel Hawthorne, author of the classic novel The Scarlet Letter, believes that every man is innately good and Hawthorne shows that everyone has a natural good side by Hester’s complex character, Chillingworth’s actions and Dimmesdale’s selfless personality. At the beginning of the Scarlet Letter Hester Prynne is labeled as the â€Å"bad guy†. The townspeople demand the other adulterer’s name, butRead MoreThe Scarlet Letter By Nathaniel Hawthorne1517 Words   |  7 PagesNathaniel Hawthorne composes Pearl as a powerful character even though she is not the main one. Her actions not only represent what she is as a person, but what other characters are and what their actions are. Hawthorne makes Pearl the character that helps readers understand what the other characters are. She fits perfectly into every scene she is mentioned in because of the way her identity and personality is. Pearl grows throughout the book, which in the end, help the readers better understandRead MoreThe Scarlet Letter, By Nathaniel Hawthorne1488 Words   |  6 Pages In Nathaniel Hawthorne’s novel The Scarlet Letter, the main character, Hester Prynne, is a true contemporary of the modern era, being cast into 17th century Puritan Boston, Massachusetts. The Scarlet Letter is a revolutionary novel by Nathaniel Hawthorne examining the ugliness, complexity, and strength of the human spirit and character that shares new ideas about independence and the struggles women faced in 17th century America. Throughout the novel, Hester’s refusal to remove the scarlet letterRead MoreThe Scarlet Letter By Nathaniel Hawthorne1319 Words   |  6 PagesPrynne and Arthur Dimmesdale are subject to this very notion in Nathaniel Hawthorne s The Scarlet Letter. Hester simply accepted that what she had done was wrong, whereas Dimmesdale, being a man of high regard, did not want to accept the reality of what he did. Similar to Hester and Dimmesdale, Roger Chillingworth allows his emotions to influence his life; however, his influence came as the result of hi s anger. Throughout the book, Hawthorne documents how Dimmesdale and Hester s different ways of dealingRead MoreThe Scarlet Letter By Nathaniel Hawthorne1714 Words   |  7 PagesSome two hundred years following the course of events in the infamous and rigid Puritan Massachusetts Colony in the 1600s, Nathaniel Hawthorne, descendant of a Puritan magistrate, in the 19th century, published The Scarlet Letter. Wherein such work, Hawthorne offered a social critique against 17th Massachusetts through the use of complex and dynamic characters and literary Romanticism to shed light on said society’s inherent contradiction to natural order and natural law. In his conclusive statements

Domestic Violence And Its Effects On Our Lives - 1469 Words

Every minute 20 people are victims of intimate partner violence. (Vagianos, 2015) Domestic Violence is described a pattern of behavior that is used to establish power and control over another person through fear and intimidation, often including the threat or use of violence. There are many other terms for domestic violence which includes intimate partner violence, battering, relationship abuse, spousal abuse, or family violence. (Safe Horizon, 2015) Domestic violence has affected and altered my life in various ways. There has been a long history of domestic violence in my family for many decades. I can remember being younger and hearing about my grandmother and her then boyfriend getting into a domestic dispute, which led to her†¦show more content†¦Sometimes I had to threaten calling the police. I remember one time in specific I heard them screaming and hollering in the bathroom. When I busted in they were both bleeding from stab wombs. My young eyes saw both of my parent s stabbing one another. My mother had a cut on her leg and my father on his arm. I was in disbelief by what I had witnessed, and of course ran to my room in tears. There were numerous other times were I have witnessed their domestic fights before and after that incident. The worst incident that I witnessed occurred when I was 11 or 12 years old. I would never forget this dispute because I had something to do with it. My mother found out that my biological father (whom she had taken all the abuse from to be a family) had been sexually and mentally abusing me. It went on for a few years before she found out. The day she found out she was so upset and utterly disgusted that she grabbed a double edged sword that we had on the wall for decoration and tried to end his life. My mother cut his arms up pretty badly, all I could remember from that time is blood being everywhere and my father denying my accusations. Luckily, they ended their relationship when he was arrested and that was the end of me witnessing domestic violence as a child. Since that relationship my mother has made a vow to her children that she would never put us nor herself in such a horrible situation or expose us to

Discovery of Entrepreneurial Opportunity †Free Samples to Students

Question: Discuss about the Discovery of Entrepreneurial Opportunity. Answer: Introduction Entrepreneurship defines development of new business along with its risks towards gaining high level of business profit (Carraher and Paridon 2015). The study will describe entrepreneurship in the business context of Uber Technologies Inc. The study will discuss a brief history over Ober. The study will also discuss two entrepreneurial schools of thought, which is related to the establishment and growth of Uber. Apart from that, the study will also discuss the three emerging trends, which can have major impact on the industry of Uber in future. Furthermore, based on the identified trends, the study will also propose three new growth strategies, which Uber can opt for gaining increasing market share in future. Entrepreneurship defines a complex term, which simply defines running own business. According to Carland, Carland and Carland III (2015), entrepreneurship is the capacity of developing, organizing and managing a business venture along with its risks towards making business profit. The practice of entrepreneurship is always inclined towards perceiving new business opportunities and exhibit positive biases in the perception. On the other hand, Bruton et al. (2015) opined that the pro-risk taking attitude of entrepreneurs makes them more likely to exploit new business opportunities and innovation. The entrepreneurial spirit is actually related to risk taking and innovation, which is highly important a business towards getting success in ever-changing and increasingly global marketplace. Uber Technologies Inc. is an American private hire company providing car hire services to the customers. The head quarter of the organization is established in California, United State. Uber was established in the year 2009 (Uberestimator.com 2017). The organization develops markets and operates Uber car transportation. The levels of car services include UberGo, UberAuto, UberPool, UberTaxi, UberRush, UberBoat, UberHire and many more. It also has food delivery mobile apps. The organization has got its success within very short span of time. Apart from providing services in United State, Uber also provides services to more than 633 cities worldwide. The Uber drivers can use their own cars as well as rent cars for driving with Uber. The ride-hailing companyUber has already raised its revenue nearly $8 billion (Uberestimator.com 2017). The organization is not limited to one aspect of system; rather they have tackled whole experience from mobile hailing, better cars, seamless payment, no tips, driver rating and many more. The CEO Dara Khosrowshahi always demonstrates entrepreneurial spirit towards providing an excellent car hiring experience to the customers through incorporating innovative service ideas. Moreover, Uber is the pioneer in the car sharing economy within its industry through Uber Pool service. The organization claims 87% market share within US car rental service industry (Price 2017). Moreover, the market share of Uber is gradually increasing in global market as compared to other car services. The most significant challenge, which Uber is facing recently, is declining numbers of talented drivers. Apart from that, the organization has lack of improved driver app, which often creates problems to the customers in booking their cars (Fayolle and Gailly 2015). Furthermore, the changing trend of the customer preference is also being tough challenge for the organization. Strategic Planning School of Thought As per strategic planning school of thought of Micro View of Entrepreneurship, strategic planning is inextricably interwoven into whole fabric of management. However, it is not something distinct from process management. Frederick, O'Connor and Kuratko (2013) opined that the view of strategic formulation depends on leveraging unique elements towards successful venture development. Moreover, unique people, unique market, unique element, unique resources and unique products are constructed towards effective formulation of venture development. While considering Uber, the organization has targeted unique market for providing car rental services. Moreover, the organization has targeted the people, who do not have their own cars, but have needs for hiring cars for their serving their temporary travelling needs. Furthermore, the organization has also hired unique drivers having excellent driving experience, which provides safe and comfortable driving experience to the customers. Apart from that, varieties of cars having different sizes meet different types of travelling needs of the customers. All these unique elements have formed the growth and development of the organization. Displacement school of thoughts demonstrates certain external factors, which highly influence the establishment and growth of an organization. There are three major types of displacement of this school of thought are political displacement, cultural displacement and economic displacement. As per political displacement, supportive Government policies and regulations form the establishment and growth of an organization. On the other hand, Frederick, O'Connor and Kuratko (2013) opined that cultural development of people for contributes to the success level of an organization. Furthermore, increasing economic development of the countries is also an integral part of organizational development. While considering Uber, it can be found that the organization gets huge Government support from both the developed as well as developing countries for its contribution to their economic development. Moreover, favorable policies and regulations of the Government have made the foundation of the business success of Uber. Apart from that, the cultural development of the people around the globe has increased their inclination towards having sophisticated travelling through hiring cars. Apart from that, economic development of the developed and developing countries has increased the spending power of the people. It has increased the capability of the customers towards frequently hiring sophisticated cars for their temporary travelling purpose. It has actually increased the profit volume of the organization. With increasing sophistication in life, customers are now more inclined to have luxurious cars even for rent car towards serving their temporary travelling needs. However, the Uber has lack of adequate luxurious cars to provide car rental services to the customers. Therefore, the car rental service industry is being failed to meet the luxurious rental car needs of the customers. On the other hand, Suddaby, Bruton and Si (2015) opined that there is an increasing demand of self-driving cars among the people around the globe even if they rent a car. In such situation, the car rental service industry has lack of self-driving cars towards serving the self-driving car rental needs of the customers. Therefore, the industry is being failed towards changing customer demands. In this way, changing consumer trends can become huge threats to the organizations in its near future. Uber gets huge support of global political environment, due to its contribution in the global economy. Moreover, the favorable rules and regulations of the government in all around the world have increased the potentiality of the business success of Uber. Therefore, such favorable policies and regulations of Government seems to be an opportunities for potential growth of car rental service industry (Sarasvathy et al. 2014). The development of social media and digital media seems to be an opportunity for the promotion Uber services around the world. However, Zahra, Wright and Abdelgawad (2014) opined that technology is changing day after day, which an organization should align with towards maintaining competitive advantage even in technologically advanced business environment. In such situation, the mobile app of car rental service industry is not that much technologically advanced. There lack of advanced features towards tracking the traffic and weather condition, which often creates issues for the customers. Therefore, lack of technically advanced hybrid cars is actually increasing contribution level to environmental pollution. It can actually seem to be threat for car rental service industry, which can prevent its future business success. Growth Strategies Uber can expand its business profitability through expanding into global market. Moreover, Uber can get huge support of Government both from developed and developing countries towards developing their business (Chatterji, Glaeser and Kerr 2014). It seems to be an opportunity for the organization towards enhancing its business growth. In such situation, Uber can expand its markets through providing its existing car rental services to more numbers of global countries. Moreover, the government of those countries would help the organization towards establishing its business there. It will enhance the user subscription rate of the organization in global market, which will add to its increasing business revenue. From the identification of trends, it can be understood that Uber is lagging behind the competitors due to its lack of capability towards aligning with technological changes. It can hamper its business in its domestic market. Therefore, Uber should modify some features of their services for gaining competitive advantage even in technically advanced business environment. Moreover, the organization should modify its mobile app for booking the cars towards providing flexible services to the customers. It will enhance the business development and increased business revenue of the organization. From the trend analysis, it has been found that changing consumer trends can severely impact of the business growth of Uber. Moreover, there is an increasing consumer trend of customers towards hiring self-driving car from the car rental service companies. In such situation, Uber has lack of self-driving cars, which is hampering its global business. Therefore, the organization should immediately incorporate diversification in their car rental services. Moreover, the organization should incorporate self-driving cars, luxurious cars and hybrid cars in its car rental services. It will meet the changing consumer trends of the customers, which will add to the growth of business and increasing market share of Uber. Conclusion While concluding the study, it can be said that entrepreneurship is the capacity of developing, organizing and managing business venture along with its risks towards getting business growth. Such entrepreneurial spirit is clearly highlighted in the business development of Uber. Being established in 2009, the organization has gained quick success in its business and expanded over 633 countries. Changing consumer trends, favorable political condition and changing technological environment have impact on the success level of the organization. Lack of self-driving and luxurious cars of Uber can disappoint the customers. However, favorable political condition of both developed and developing countries can assist the organization towards more market expansion. Reference List Bruton, G., Khavul, S., Siegel, D. and Wright, M., 2015. New financial alternatives in seeding entrepreneurship: Microfinance, crowdfunding, and peer?to?peer innovations.Entrepreneurship Theory and Practice,39(1), pp.9-26. Carland Jr, J.W., Carland, J.A.C. and Carland III, J.W.T., 2015. Self-actualization: The zenith of entrepreneurship.Journal of Small Business Strategy,6(1), pp.53-66. Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline.Journal of Small Business Strategy,19(2), pp.89-98. Chatterji, A., Glaeser, E. and Kerr, W., 2014. Clusters of entrepreneurship and innovation.Innovation Policy and the Economy,14(1), pp.129-166. Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial attitudes and intention: Hysteresis and persistence.Journal of Small Business Management,53(1), pp.75-93. Frederick, H., O'Connor, A. and Kuratko, D. 2013.Entrepreneurship. 3rd ed. p.13. Huq, A., Huq, A., Gilbert, D. and Gilbert, D., 2017. All the worldsa stage: transforming entrepreneurship education through design thinking.Education+ Training,59(2), pp.155-170. Price, C. 2017.Digital technology drives Uber to global success. [online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/sponsored/technology/4g-mobile/engaging-customers/11366554/digital-technology-uber.html [Accessed 10 Oct. 2017]. Sarasvathy, S., Kumar, K., York, J.G. and Bhagavatula, S., 2014. An effectual approach to international entrepreneurship: Overlaps, challenges, and provocative possibilities.Entrepreneurship Theory and Practice,38(1), pp.71-93. Suddaby, R., Bruton, G.D. and Si, S.X., 2015. Entrepreneurship through a qualitative lens: Insights on the construction and/or discovery of entrepreneurial opportunity.Journal of Business Venturing,30(1), pp.1-10. Uberestimator.com. 2017.Uber United States 248 Uber cities. [online] Available at: https://uberestimator.com/country/united-states [Accessed 10 Oct. 2017]. Zahra, S.A., Wright, M. and Abdelgawad, S.G., 2014. Contextualization and the advancement of entrepreneurship research.International Small Business Journal,32(5), pp.479-500.

The Green Mile Card Report 2 Essay free essay sample

, Research Paper The Green Mile, March 1999 Stephen King, 1947- ? Drumhead: John Coffey is brought to Cold Mountain accused of colza and slaying. It becomes known that he has a healing touch. Paul Edgecombe, the overseer, has sympathy for Coffey and subsequently finds out that Coffey is so guiltless, but can happen no manner to halt the executing. Coffey proclaimed that he wanted to travel and therefore allowed Paul to accept Coffey s destiny as he must, and travel on with his life. Cardinal Fictional characters: Paul Edgecombe, likely over 100, storyteller, was the caput of E block ( decease row ) at Cold Mountain Penitentiary. Paul faces an internal battle between what his occupation wants him to make and what he sometimes knows is the right thing. Kind and gentle, he recounts this episode of his life from Georgia Pines, his retirement place. John Coffey is a immense, muscular black adult male but is really slow in the mental sense, brought into a state of affairs where decease surrounds him, yet he has the power to mend by his ain touch. We will write a custom essay sample on The Green Mile Card Report 2 Essay or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Other Fictional characters: Dean Stanton, Harry Terwilliger, Brutus Howell, and Percy Wetmore were all guards on E block. Percy was the most important ; he was a banty-rooster kind of cat. He liked to pick battles. He represented the frights of Paul Edgecombe. Though it is non obvious at the beginning, it becomes clearer as Paul ages. Toot-Toot was portrayed as a fool to buoy up the temper of the narrative. His wit is what kept the other guards sane. Hal ( Warden ) Moores was the warden of Cold Mountain Penitentiary. Melinda Moores, Hal s married woman, is portrayed as a ill aged adult female. She is used in the narrative to show the marvelous mending power that John Coffey held. Janice Edgecombe was Paul s married woman. She died in a coach accident, puting up the character of Elaine Connelly, who Paul met at the retirement centre in his ulterior old ages. Eduard Delacroix was a bantam, timid Frenchman sentenced to decease in old sparky s lap. He was the proprietor of the mouse name d Mr. Jingles and he was used through his executing to portray Percy s evil nature and to put up the decease scene for John Coffey. William ( Billy the Kid ) Warton was a sadistic adult male who was sentenced to decease at Cold Mountain besides. He was the lone individual that Percy Wetmore was afraid of. William intimidated Percy merely as Percy intimidated everyone else. It becomes subsequently known that William was the 1 who committed the offense for which Coffey was being executed. Brad Dolan worked at Georgia Pines. He acted merely like Percy one time did and that scared Paul in his aged old ages. Brad was barbarous, heartless, and thrived on the hurting of others. Puting: Cold Mountain Penitentiary, peculiarly E block during the early 1930s. During the depression this was merely about the lone occupation the guards had to take from. Paul writes this narrative from his room in the Georgia Pines Retirement Center. Point of position: When depicting events of E block Paul uses first individual omniscient, while his life in the retirement centre is told in first individual limited. Tone: Sympathy for Paul Edgecombe, unhappiness and compunction for John Coffey. Sarcasm: John Coffey, a therapist, is executed for the slaying of the two misss that he tried to salvage. Paul can t stand Percy Wetmore, yet when he grows old and is populating in the retirement centre he is pestered by Brad Dolan who reminds him of the heartless Percy in his yearss as E block overseer. After old ages of being alone, Paul finds a adult female, Elaine Connelly, who reminds him in every manner of his married woman Janice, who was tragically killed in a bus accident. Subject: Life itself is climbing nightshade. Symbols: Mr. Jingles, Delacroix s mouse, was symbolic of everything good on the Green Mile. He was symbolic of the lone joy that E block held. The mouse brought compassion to all the guards except for Percy Wetmore, who tried to kill the gnawer. The Green Mile symbolized our journey through life, and the electric chair symbolized its terminal. The bugs that came out of Coffey s oral cavity following the healings were symbolic of the illness go forthing. He inhaled the illness or complaint of each individual ( and the mouse ) that he healed into himself. The bugs go forthing his oral cavity signified that the illness was cured, and that he had so helped. Evaluation: Paul so absolutely put into words his ain life, and even more so his load of life. Paul is truly the tragic character of the narrative. Paul is likely over 100 old ages old, and has come to the point where he doesn T want to populate any longer. Where John Coffey was able to decease when he came to the decision that the universe didn T want him, Paul is trapped in a organic structure that seems to fend off about every unwellness due to Coffey s mending Paul s urinary piece of land infection. He has seen everyone close to him decease, worst of all lasting a coach clang that took his darling married woman, while hardly wounding him. The last portion of the journey through Paul s life explains the adversity he has faced, and how he now wishes for decease much like Coffey did. He learns that he has no control over his ain fate no affair how much he wishes that it could be different. Ending the narrative he explains: We each owe a decease, there are no exclusions, I know that, but sometimes, oh God, the Green Mile is so long.

Theology of Missions Paper Essay Example

Theology of Missions Paper Essay Example Theology of Missions Paper Essay Theology of Missions Paper Essay Essay Topic: Natural Theology The Lord Of the Rings the Fellowship Of the Ring In today’s time the other main focus besides Jesus Christ is dealing with the concept of mission to where everybody focuses on it. There are many different definitions that have been expounded upon by scholars of the church or by people who have taken a great interest in seeing the word of God spread throughout the world to the lost. As we further explore the scriptures in the bible we can clearly see that God loves his people and he desires to see them not perish. In the book of John 3:16 (KJV) 16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. This is the strongest demonstration that God shows and teaches us. Through this we are compelled to put effort into learn the word of God so that we will be effective in sharing the word of God abroad to all the nation of the earth through missions. Encountering Missions in the Old and New Testament The purpose of us reading the bible is for us to understand God and his intention for his creation on this earth through missions. First, it presents the mission and purpose of God with great power and clarity and with universal implications for all humanity. Second, the Old Testament shaped the very nature of the mission of the New testament church, which, indeed, felt compelled to justify its mission practice from the Scriptures we now call the Old Testament†. (Wright 2000) In the book Introducing World Miss ion, the author examines the missions of the Old Testament and categories them into four scenarios. The first one is the creation and the fall. The second is God’s calling and setting apart a people for himself. The third is God’s work in rescuing his people and the fourth one is God’s work sending his people into exile. When close examining the four categories you see in the first one that God creates a people for his purpose and that is to praise and worship him and to be a representative ruler in the earth as he is ruler of the universe In the book of Genesis we that that God say in verse 26, â€Å"to let us make man in our image and likeness male and female†. For some time many people have misunderstood this phrase and equated to a fact that that God has an image and we are made in the very image of him. Which is very true but they look at it from a natural man’s perspective. We know that we have a spirit that has a body that possesses a soul. If that is a case we must realize that if God is in us and he is a Spirit, then the image that was talked about in verse 26 was the spirit that dwells in us. God desired to share that with us through his creation. Look at what he did when he formed Adam. He created everything for him and he wanted him to do was subdue the earth as God did in heaven. Then the ultimate thing happen when Adam disobeyed God. There was a spiritual separation that took place when he consumed the forbidden fruit. Genesis 3:7-13 (KJV) 7 And the eyes of them both were opened, and they knew that they were naked; and they sewed fig leaves together, and made themselves aprons. 8 And they heard the voice of the Lord God walking in the garden in the cool of the day: and Adam and his wife hid themselves from the presence of the Lord God amongst the trees of the garden. 9 And the Lord God called unto Adam, and said unto him, Where art thou? 10 And he said, I heard thy oice in the garden, and I was afraid, because I was naked; and I hid myself. 11 And he said, Who told thee that thou wast naked? Hast thou eaten of the tree, whereof I commanded thee that thou shouldest not eat? 12 And the man said, The woman whom thou gavest to be with me, she gave me of the tree, and I did eat. 13 And the Lord God said unto the woman, What is this that thou hast done? And the woman said, The serpent beguiled me, and I did eat. In the second category we God move through love and that is establishing a covenant thru Noah and Abraham. Looking at the covenant with Noah he promise with the bow that he would never destroy mankind with a flood and that covenant still exist and we can see mainly after it rains. The covenant with Abraham was a lot different from the one of Noah. God begin to cut a covenant with Abram before he was even called Abraham. He began to tell him that he was going to bless him and make you a great nation. He said that he would make his name great. He also included that he would be a blessing and that he would bless those who bless him and curse those had cursed him. This is very amazing because you begin to see God making a transition thru the man of God to get the people back to where they belong and that is in God. In this whole entire time we see that God is moving on the behalf of the people. In the book of exodus we see how he rescues them from Pharaoh. We also see how he begins to set order in so that the training of his will take place. Ultimately this take place with the birth, death and resurrection of Jesus Christ to reconcile us back to the Father. The whole entire time from the Old Testament to the New Testament was undisclosed mission work that took place on earth. Mission Theology In The World Missions book the others believe that theology concerns itself with reflection on the nature of the gospel, and the theology of mission with the question of the way the Church spreads the gospel. Indicating that there both important to the gospel spreading the word. Many scholars dealing with this topic began to integrate comparative motif with Theology of Missions and Biblical Revelation. The first motif dealt with the Kingdom of God. The second one was centered on Jesus which is the main focus for mission work. The third one was the reliance on the Holy Ghost. He is a very important one because he empowers the people for mission work. The fourth one deals with the church which is a local body that assembles together for worship and fellowship. The last important one is the returning of Jesus, which brings motivations to the believer to endure. Effecting the People No matter how many different definitions or opinion that have or will generate for missions. The main focus is in the Great Commission that Jesus left for all believers. He focus was to make sure that the word of God was spread to all nations and that disciples were being made so that they could continue the work until Jesus return for us. On that note it is very imperative that all believers’ especially missionaries understand the word from God’s perspective and not man’s. They have to understand everything when they are about to go to another country. For example, understanding the history and customs play a very important role. For instance a women going to an Islamic country without covering herself is suicide because they did not take the time to research the customs of that country. Conclusion In this walk with Christ we all must realize that we are a part of a kingdom that is so big and powerful. The important thing to remember is that there are no big I’s or U’s in the Kingdom. We all have a part to play, whether we preach or do mission work it all is important in the Kingdom. We must take the focus of us and remember John 3:16. For it was he that sacrificed his Son for us. Bibliography A. Scott Moreau, Gary R. Corwin and Gary B McGee. Introducing World Missions. Grand Rapids: Baker Academic, 2004. Key-Word Study Bible. Chattanooga: AMG Publisher, 1991.

Federation essays

Federation essays The move to federation was not an easy one; there was lots of debating and disagreement, as Alfred Deakin wrote in 1900 its accomplishment must always appear to have been secured by a series of miracles. It was not until the late 1880s that a movement towards federation really started to gather strength. Before this the colonies held the believe that federation would do little for them, they were too busy in there own local problems. However a sense of nationalism was growing and Australia was primarily an Anglo Saxon, English speaking country and Australians were determined to keep it that way. By the 1880s 70% of Australian people were native born, these Australians regarded Australia as home. Australians had also become worried about the number of Chinese immigrants coming into Australia during the gold rush. There were also pacific islanders who came to work in Queensland on the sugarcanes.. There were a lot of problems with defence during the mid 1880s, the activities of Germany and France coursed concerns Because they were growing in power and they were interested in countries nearby. These countries were New Guinea and New Caledonia. States could not hold out attacks, They would need a united nation to help them. There were also problems of communication, train lines between the states were different widths. This meant that the passengers had to get of the train at each off the borders and wait for the train on the other sides. This also caused problems with defence, soldiers had to get of and wait for another train. This takes up time. In 1880 the father of federation Henry Parkes, also the premier of New South Wales suggested the formation of a federal council to address the publics questions about federation. This council was not formed until 1885. New Zealand were involved with the federal council but did not continue for long because their representatives found it to far to tra ...

Self Assessment Analysis Speech or Presentation Example | Topics and Well Written Essays - 750 words

Self Assessment Analysis - Speech or Presentation Example I had a problem of making eye contact with my audience ever since I started delivering as a public speaker. But after making gradual attempts of delivering speeches in front of my friends I have improved on the aspect of eye contact. I can now successfully look into the eyes of audience for a bit but then again I tend to feel some kind of problem when looking at the audience for long. Hence it can be said that the aspect of eye contact has improved but it still needs some work. The problem of nervousness when delivering speeches is the most formidable task to handle. It is because of this nervousness that I used to stutter when delivering my speeches. Over time I practiced my speeches and gave them in front of my close acquaintances so that I could work on the problem. When I delivered the speech in front of them I did not face any problem of nervousness whereas when I delivered the speech while being on the stage I began to face the same problem again. Thus it can be said that I hav e some kind of stage fear which can only go if I believe in myself. In other words I should build up on my self confidence level so that I can deliver in front of a huge crowd. Organization of speech is also an important perspective which should be kept in mind when delivering different speeches. It is this organization which helps the audience understands the root and theme of the speech being given. A public speaker should know how to organize and deliver the speech in accordance so that the audience can feel the theme provided by him. I have learned the art of organization and can easily use this skill to organize my speech accordingly. When I deliver my speech these days I tend to use this skill and impress my audience through this organization. When delivering a speech it is important that the public speaker connects himself to the audience so that they can understand what he is actually trying to convey through his speech. Connecting to the audience can be done through differe nt aspects out of which looking into the eyes is an important one. The audience should see my expression when I deliver the speech and this would help them to connect to my inner feelings. As a public speaker I have realized that I can connect to the audience and express my inner feelings to them. It is through this technique that the audience appreciates the speeches that I give. Although I have not mastered this aspect I have gained experience in utilizing the technique. However I still need to work on it and gain more experience so that I can connect fully to the audience when delivering my speech. All these aspects are not yet mastered by me but over time I have improved myself in all these aspects. Gradually with a little more practice I believe that I would be able to master them and successfully deliver as a public speaker. I need to learn more techniques regarding speaking and have to take guidelines from experienced public speakers. I need to learn different ways through wh ich I would be able to successfully deliver a speech like professional public speakers and for such a thing I need to

Finance report on Engro Corporation (Pakistan) Essay

Finance report on Engro Corporation (Pakistan) - Essay Example The overall per capita income is approximately $1250 with low literacy rates and high population growth rates. Pakistan is considered as a developing country due to different factors such as higher mortality rates, low literacy ratio, high population growth rates, higher levels of poverty, lack of health care facilities, poor education system etc. It is however, important to note that Pakistan’s economy has suffered a lot in recent times due to war on terror which has created significant law and order situation. (CIA The World Factbook 2011) Pakistan has its own Institute of Chartered Accountants which is also affiliated with the major international accountancy bodies. Over the period of time, accountancy as a profession has evolved in the country and Pakistan also exports its accountants to GCC countries especially due to overall quality and strength of its accountancy profession. Engro Corporation is a diversified company engaged in fertilizer, food as well as energy sector. The primary markets of the firm are Pakistan where it mostly sells its output however, it also plans to expand its food business in North America also. (Najeeb 2011). Major competitors of firm include Fauji Fertilizer Limited, Nestle Limited, and Unilever Pakistan etc. Company Industry Assets Market Cap Employees Engro Corp Conglomerate 132,105M 55748.035M2 32023 Pak Packages Food, Beverage 39,625.0M 8.800Bn4 300 Unilever 5Pakistan FMCG 13,554.00M 75.2Bn NA Fauji Fertilizer6 Fertilizer 74,016.94M 131.8Bn 100-500 PSO7 Oil Marketing 202,247.7M 40.90Bn 2000 Lotte Pak8 Chemical 22,896.00M 16.80Bn 2279 The above data about the companies are present on the official website of the Karachi Stock Exchange where all these firms are listed. 2(a) Engro Corp is required to publish its annual audited report in compliance of various domestic as well as international legislation requirements. It prepares following financial statements10: 1. Balance Sheet 2. Profit and Loss Account ( along with statement of comprehensive income) 3. Cash flow statement 4. Statement of changes in equity The first three notes to the accounts discuss following: Legal Status and Operations: In this note the firm has discussed its legal status and operations while at the same time giving a bifurcation of its balance sheet to outline different segments of its business. Note 2 provides the summary of the significant accounting policies adapted by the firm and discusses different policies such as basis of preparation of the accounts, application and interpretation of different accounting standards etc. Note 3 provides critical accounting estimates and judgments and provides a comprehensive understanding of firm’s policies regarding depreciation, impairments, income taxes, fair values of employees investments etc. Appendix Attached 2(b) The basis of preparation of the accounts are the historical cost c onvention however, firm has disclosed that it also records some financial assets and financial liabilities based on their fair value. It is also to be noted that the financial statements have been prepared in accordance with the approved

Sound Pollution Essay Example for Free

Sound Pollution Essay It focuses not on the cliched environmental problems such as Global warming, but on an issue that is quite exceptional in nature- Noise Pollution. Its name quite clearly outlines its aim and purpose of existence*- ‘Awaaz’ is a Hindi word that means- Voice. Sometimes, in everyday language, it is also used in reference to noise. Voice, noise. Perfect. Its aim is to counter noise pollution. It may sound weird, but noise pollution is one of the most prominent environmental pollutants in India. It is quite exclusive to the metropolitan cities in India-Delhi, Mumbai, Calcutta, Chennai, Bengaluru etc. Literally: Noise pollution is encountered almost every day in such places, whereas in the rural areas, it occurs periodically- noise pollution peaks during festivals- the beating of drums, trumpets, loud speakers, fire crackers, bombs etc add to the high-decibel noise made by the people during the harvest festivals and other religious festivities. In the cities and other urban sites, we can note that noise pollution is higher than usual during election times- the politicians about a hundred from each political party, which itself count up to seven hundred fifty from all over the nation, use loudspeakers that cross the maximum noise limit approved by the Supreme Court of India. The maximum decibel limit ranges between 125 and 145 db (db- Decibel; unit to measure the noise level) Especially during Diwali- a famous festival of light celebrated all over India by Hindus- involves bursting of firecrackers and bombs. These explosions and lights are mainly incorporated into these festivals to express joy and festivity. However, when a test to check the noise pollution caused by the firecrackers, was performed by the Maharashtra Pollution Control Board (MPCB) and Awaaz Foundation before Diwali, it was found that at least 8 crackers crossed the decibel limits by considerable amount. Following many such incidents, the Awaaz Foundation has been quite active in spreading awareness of the ill effects of noise pollution by helping to shape up the government policies on the same. It has also organized two seminars: The first on the pollutant – Loudspeaker on October 2004 and the next concentrates on noise pollution caused by traffic and construction sites- the latter was conducted on February 2006. To talk about the actual effect that Awaaz has managed to create in the lives of the Mumbai citizens a) Several strategies and policies suggested by the Awaaz Foundation were accepted the Government of Mumbai and were implemented such as: Incorporation of noise parameters in the construction sites of the Mumbai- Nhava Trans Harbor Sea Link. Also it has agreed to be a Silence Zone after completion of the construction. Silence zone: region around a noise-producing source in which the noise is not audible. b) Under the foundations influence, a ‘No Horn’ day has also come into practice. c) Noise Barriers have been introduced in the roads of Mumbai. d) Under its efforts, many other places have been declared Silence Zones. e) Monitoring of sound levels, especially during festivals and Political rallies have led to considerable decrease in noise pollution in Mumbai.Other activities undertaken by this foundation to gradually improve the environment of Mumbai are: Banning of Sand Mining in several Beaches, organizing a Workshop that discusses alternative methods on building and construction that do not use sand and participation in the Mumbai Tree Association are also its other initiatives. However these are not that prominent compared to their role in preventing Noise Pollution. Reference http://www.indianexpress.com/news/decible-levels/703669/

Elements of Fiction in Danielle Steel’s Mixed Blessings :: Danielle Steel Mixed Blessings Essays

Elements of Fiction in Danielle Steel’s Mixed Blessings Danielle Steel, in her work of fiction, Mixed Blessings, has effectively used plot, setting, and theme as she weaves a powerful tale of three couples who face decisions about having children that will test, in unexpected ways, the ties that bind them as lovers, partners, and friends. Steel has used these elements to emphasize that there are people who have such a great need and love for children. In Mixed Blessings, she represents women radically and optimistically as shown by Diana Goode, Barbie Mason, and Pilar Graham, unlike the negative representation of womanhood in the movie version of her other novel, The Ring, where Kassandra feels that taking her own life would save her children and her husband from the shame of her unfaithfulness. First, there is a major plot structure in Mixed Blessings, the plot of complications. Right from the beginning, Steel portrays the female characters in terms of their dreams, careers, and their curiosity about having a family. For instance, Diana is the middle child amongst three sisters; her goal is to classically strive to be better, smarter, and more successful. She feels that she has to achieve something more than her sisters have done. Gayle, Diana’s older sister has a dream of attending medical school, but she happily succumbs to marriage temptation. In fact, in Steel’s own words Gayle’s situation is described as: Her oldest sister, Gayle, had been set on going to medical school until she met her husband in her first year of premed, married him that June, and instantly got pregnant. . . . Gayle never looked back at a career in medicine once. She was happily married, and satisfied to stay home with her girls and keep busy with them and her husband. She was the perfect doctor’s wife, intelligent, informed, and completely understanding about his hours as an obstetrician. (6) As the plot progresses, Diana has her own complications from the Intrauterine Device (IUD) she has been using for the past eighteen years. The IUD delayed her from having a child immediately after her marriage. Another aspect of plot that Steel has used in this novel is the reversal of fortune, where Diana, the young elegant looking woman, who knows where she is going and what she wants out of life, ends up being frustrated about inability to have a child.

Housing Finance

[pic] [pic] [pic] BY: SHALEEN BAWEJA (15946) PUROO SONI (15907) DIWAKAR ANAND (15912) MUDIT KALRA (15918) AMAN ARORA (15944) ACKNOWLEDGEMENT We as a group would like to express our sincere thanks to MR. KUMAR BIJOY our FINANCIAL SERVICES faculty for helping us study the subject in depth thus giving us a wholesome experience. We also express our gratitude towards COLLEGE OF BUSINESS STUDIES for giving us the opportunity to work on the project. INDEX S. No. PARTICULARS PAGE 1. PROFILE OF NATIONAL HOUSING BANK 4 2. WHY HOUSING FINANCE IS IMPORTANT? 7 3. HOUSING & GDP 8 4. TYPES OF HOME LOANS 9 5. HOUSING FINANCE COMPANIES IN INDIA 11 6. SUMMARY OF FINANCIALS OF SELECTED HOUSING FINANCE COMPANIES 21 7. REVERSE MORTGAGE LOAN 22 8. HOUSING FINANCE- SCOPE IN INDIA 24 9. ASSESSMENTS & PROSPECTS 30 10. FUTURE EXPECTATIONS 32 11. LIMITATIONS OF HOUSING FINANCE 33 12. ANNEXURES 35 PROFILE OF THE NATIONAL HOUSING BANK The National Housing Bank (NHB) was established on 9th July 1988 under an Act of the Parliament viz. he National Housing Bank Act, 1987 to function as a principal agency to promote Housing Finance Institutions and to provide financial and other support to such institutions. The Act, inter alia, empowers NHB to: ? Issue directions to housing finance institutions to ensure their growth on sound lines ? Make loans and advances and render any other form of financial assistance to scheduled banks and housing finance institutions or to any authority established by or under any Central, State or Provincial Act and engaged in slum improvement and Formulate schemes for the purpose of mobilisation of resources and exten sion of credit for housing OBJECTIVES NHB has been established to achieve, inter alia, the following objectives: ? To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system. ? To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. To augment resources for the sector and channelise them for housing. ? To make housing credit more affordable. ? To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act. ? To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country. ? To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing. BUSINESS ACTIVITIES NHB, as the Apex level financial institution for the housing sector in the country, performs the following roles: ? Regulation and Supervision NHB exercises regulatory and supervisory authority over the HFCs in the matter of acceptance of deposits by them pursuant to the powers vested in it under the Act. As per the amendments to certain provisions of the Act, which came into effect from June 12, 2000, NHB is vested with powers to grant Certificate of Registration to companies for commencing/carrying on the business of a housing finance institution. Besides, NHB regulates the deposit acceptance activities in accordance with the Housing Finance Companies (NHB) Directions, 2001, amended from time to time, in the matter of ceiling on borrowings (including public deposits, rate of interest, period, liquid assets, etc). NHB has also issued Directions on prudential norms in regard to capital adequacy, asset classification, concentration of credit, income recognition, provisioning for bad and doubtful debts etc. NHB supervises the working of HFCs through on-site inspection and off-site surveillance. ? Financing NHB raises resources for the housing sector towards increasing new housing stock and provides refinance to a large set of retail lending institutions. These include scheduled commercial banks, scheduled state cooperative banks, scheduled urban cooperative banks, specialised housing finance institutions, apex co-operative housing finance societies and agriculture and rural development banks. Refinance is provided by NHB under various schemes, which are formulated taking into account, several aspects of the National Housing Policy, the constraints facing the sector etc. NHB has also a window for direct lending to Public Agencies such as, State Level Housing Boards and Area Development Authorities for large scale integrated housing projects and slum redevelopment projects. NHB is also operating a special window for extending financial assistance to the people affected by natural calamities viz. earthquake, cyclone etc. ? Resources of NHB NHB raises resources from diversified sources, both domestic and external by issuing Bonds/ debentures, borrowing from RBI and financial institutions/organisations etc. Under the Act, NHB is authorised to issue and sell Bonds with or without the guarantee of the Central Government for the purpose of carrying on its functions. ? Rural Housing NHB launched the â€Å"Swarna Jayanti Rural Housing Finance Scheme† to mark the golden jubilee of India's Independence. The Scheme seeks to provide improved access to housing loans to borrowers for construction/acquisition/ up-gradation of a house in rural areas of the country. Statistics Comparative Data on Housing Finance Disbursement Housing Finance Companies (Amt in Rs. crore) July-Sep 2003  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   July-Sep 2004 UNIT |AMT   | | 101182 |5207. 42 | |UNIT |AMT   | |104225 |6286. 15 | Why housing finance is important? Perhaps few things are more developmental than housing. Given its linkages to many sectors in the economy – including land markets, construction, and labour markets – housing finance is key to econo mic growth. It has been estimated that there are roughly 600 other industries that have links to the housing markets. A stimulus to the demand for housing will have a direct or indirect stimulatory impact on all of these industries. The availability of mortgage financing also stimulates the construction of new housing units. House construction and related industries are labour-intensive and thus provide significant employment opportunities; thus, a greater demand for housing provides a very large economic stimulus to the broader economy. There are also numerous other societal and Developmental benefits to providing decent living space to the poorer segments of society, which are our principal target markets. Productivity and employment are very often enhanced by providing a living space close to where people work. IMPORTANCE OF HOUSING SECTOR IN INDIA ? Income Generation It is estimated that the construction sector’s income multiplier is around 5, while construction related manufacturing has an income multiplier of 7. 6. ? Employment Generation Today, there are 2. 5 cr. construction workers in the country. In terms of direct, indirect and induced employment generation, the construction sector’s employment multiplier is 7. 76. ? Revenue Accruals to Government An investment of Rs. 100 generates Rs. 11. 4 as revenue to the Government in the form of sales, excise taxes and octroi. ? A basic human necessity supporting economic activities. ? Have forward and backward linkages with over 250 ancillary industries. ? Every Rupee spent on construction, an estimated 75-80 paise is added to GDP. ? Housing Industry Growth in last 5 years – Physical Terms 3. 0 % p. a. Financial Terms 30% p. a. ? Contribution of Housing in GDP is about 6%. ? Percentage of Mortgage Debt to GDP is 8. 0% (E) in 2005-06, still way below China’s (12%), Malaysia (22%), Hong-Kong (40%) and US (65%). ? An engine of equitable economic growth – Investments, Savings.. Housing and GDP Housing construction contributes approximately 1-2% to India's GDP as compared to the entire construction sector’s contribution of around 6%, which includes roads, ports, housing, dams and canals etc. The construction industry is the only industry which makes use of all oth er industries; you need ceramics, pipes, steel, cement, glass, tiles, iron, wood, cloth. Start construction and you provide employment for hundreds of labourers, you will use transport for transferring materials, so the transportation industry will get a boost, labourer's income will increase, spending will increase. Over and above, you solve the housing problem. If this is done, the contribution might go up to 10% for the construction sector and around 3-4% for the housing sector. Another way of looking at the huge potential of housing construction sector for the development of economy is through it’s impact on GDP. A 10% increase in final expenditure in the construction sector increases the GDP by 3%. TYPES OF HOME LOANS Home Purchase Loans: This is the basic home loan for the purchase of a new home. Home Construction Loans: This loan is available for the construction of a new home on a said property. The documents that are required in such a case are slightly different from the ones you submit for a normal Housing Loan. If you have purchased this plot within a period of one year before you started construction of your house, most HFCs will include the land cost as a component, to value the total cost of the property. In cases where the period from the date of purchase of land to the date of application has exceeded a year, the land cost will not be included in the total cost of property while calculating eligibility. Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased, for external works like structural repairs, waterproofing or internal work like tiling and flooring, plumbing, electrical work, painting, etc. One can avail of such a loan facility of a home improvement loan, after obtaining the requisite approvals from the relevant building authority. Home Extension Loans: An extension loan is one which helps you to meet the expenses of any alteration to the existing building like extension/ modification of an existing home; for example addition of an extra room etc. One can avail of such a loan facility of a home extension loan, after obtaining the requisite approvals from the relevant municipal corporation. Home Conversion Loans: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through a home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the previous loan. Land Purchase Loans: This loan is available for purchase of land for both home construction or investment purposes Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property. Bridge Loans: Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer s found for the old home. Balance-Transfer Loans: Balance Transfer is the transfer of the balance of an existing home loan that you availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a lower rate of interest. Re-finance Loans: Refinance loans are taken in case when a loan for your house from a HFI at a particular ROI you have taken drops over the years and you stand to lose. In such cases you may opt to swap your loan. This could be done from either the same HFI or another HFI at the current rates of interest, which is lower. NRI Home Loans: This is tailored for the requirements of Non-Resident Indians who wish to build or buy a home or property in India. The HFCs offer attractive housing finance plans for NRI investors with suitable repayment options. HOUSING FINANCE COMPANIES IN INDIA I. BOB HOUSING FINANCE   [pic] BOB Housing Finance Limited was set up in December, 1990 by Bank of Baroda in association with National Housing Bank. The company became a wholly owned subsidiary of Bank of Baroda since March 31, 2006. Purpose For purchase of land /site from Govt. statutory bodies such as housing boards, Development Authorities/CIDCO etc. Amount (Least of the following subjects to minimum of Rs. 50,000/-) 85% of the cost/purchase price of the land. Rs. 100 lacs. 42 months gross salary or 3 1/2 times of average annual income as per income tax returns last 3 years of which ever is less. . Rate of Interest :The current interest rates are as under : |FIXED RATE OPTION | |TENURE |   | | |NEW RATE | 1-5 |   |9. 00% | |6-10 |   |9. 25% | |11-20 |   |9. 75% | |VARIABLE OPTION | |TENURE |   |NEW RATE | |1-20 |   |9. 75% | †¢ Interest will be calculated on annual rest basis. †¢ Installment to commence from the next month, from the month in which loan is fully disbursed or expiry of 1 1/2 year from the date of first disbursals whichever is earlier. Pending EMI, Pre-EMI interest is to be paid on monthly basis on loan disbursed. Security †¢ Equitable mortgage of the plot of land to be purchased. †¢ Personal guarantee of one individual. II. CAN FIN HOMES [pic] Can Fin Homes Limited was set up in 1987, the â€Å"International Year for Shelter for the Homeless,† by Canara Bank in association with reputed financial institutions including HDFC and UTI. The first bank sponsored Housing Finance Company in India; Can Fin Homes has emerged as one of the leading players in the country's home loan segment. Canara Bank offers home loans for construction/purchase of house/flat and also for renovation of existing flat/house. The bank offers a maximum loan of Rs. 1,00,00,000/- depending on the borrower's repayment capacity. The loan repayment period is 5 – 10 years for site loans and 5 – 20 years for other loans. Canara Bank home loans are offered for purchase or construction of any residential house or flat. The bank also provides finance for companies or corporations or Societies for purposes of construction or purchase of residential houses or flats. Canara Bank provides loans to individuals for site purchase where the allotment of site shall be for the residential purpose by State Development Agencies, Municipal Bodies, and Associations. How much amount you get a loan Upto Rs. 1,00,00,000/- depending on your repayment capacity. Repayment capacity will be considered after assessing your income, age, qualifications, work experience, number of dependents, spouse's income, stability of income and employment, assets, liabilities, etc. You can apply for a loan upto 80% in the case of site loan and 85% of otal project cost for the remaining section depending on your repayment capacity. Your loan repayment will be †¢ 5 – 10 years for site loans, 5 – 20 years for other loans. †¢ They are payable in easy, Equated Monthly Installments III. LIC HOUSING FINANCE   [pic] LIC Housing Finance Limited is one of the leading players in the home loan segment. Incorporated on June, 19, 1989 and promoted by the Life Insurance Corporation of India, LIC Housing Finance Limited boasts of an extensive distribution network and a massive brand presence by virtue of being one of the earlier entrants in the market for housing loans. Griha Prakash Loan Amount: †¢ Min. Rs. 25,000 †¢ Max. Rs. 1,00,00,000. Loan to Property Cost : 85% of total Cost of the property including Stamp Duty and Registration Charges. Loan Term : Upto 20 Years or Retirement Age or 70 years of Age, whichever is earliest. Repayment Mode : Equated Monthly Installments(EMI) – Monthly Rest Basis Security : 1. Equitable Mortgage of House/Flat 2. One Guarantor. Risk Cover: Any existing or new policy under any acceptable plan of insurance (issued by LIC of India) on the lives of the applicants, having risk cover to the extent of loan amount. Front End Charges: 1. 00% of Loan Sanctioned. Loan for Purchase of Vacant Plots/Sites Loan Amount: Min Rs. 50,000 Max Rs. 20,00,000. Loan to Property Cost: 85% of the Cost of Plot/Site. Loan Term: Upto 15 Years or Retirement Age, or 70 years of Age, whichever is earliest. Repayment Mode: By Equated Monthly Installments (EMI) – Monthly Rest Basis. Security: 1. Equitable Mortgage of Plot/Site 2. One Guarantor. Risk Cover: Life Insurance Cover is not required but advisable in the interest of the applicants. Front End Charges: 1. 0% of Loan Sanctioned. V. SBI HOME FINANCE [pic] State Bank of India (SBI), the largest bank in India, is one of the market leaders in the home loan segment. But SBI's reputation has surely taken a hit following the collapse of the erstwhile SBI Home Finance Limited in which SBI was the largest shareholder along with other institutional promoters like HDFC and LIC. Due to continued losses and complete erosion of its net worth, the company's certificate of registration had been cancelled by the National Housing Bank. SBI offers home loans for a variety of purposes: purchase/ construction of new House/ Flat, purchase of an existing House/ Flat, purchase of a plot of land for construction of House and extension/ repair/ renovation/ alteration of an existing House/ Flat. SBI home loans come with some unique features that make them stand out in the competition: no cap on maximum loan amount for purchase/ construction of house/ flat, option to club income of one's spouse and children to compute eligible loan amount, free personal accident insurance cover and complimentary international ATM-Debit card. Besides the standard package of home loans, SBI has some customized home loan products in its kitty that address the needs of niche customer segments. ‘SBI-Flexi' Home Loans are designed to enable borrowers to hedge their Home Loan against unfavorable movement in interest rates and gives the customers a one time irrevocable option to choose one of the three customized combinations of fixed and floating interest rates. ‘SBI-Freedom' Home Loans are customized for high net worth individuals and offer benefits such as 100 per cent finance of the project and no mortgage f the property, provided the individual could show liquid securities such as LIC policies or NSCs. SBI Housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! ‘SBI-Home Loans' Loan Amount  Applicant/ any one of the applicants are aged over 21 years and upto 45 years – 60 times Net Monthly Income (NMI) or 5 times Net Annual Income (NAI), subj ect to aggregate repayment obligations not exceeding 57. 50% of NMI/ NAI   Applicant(s) aged over 45 years of age- 48 times NMI or 4 times NAI, subject to aggregate repayment obligations not exceeding 50%of NMI/ NAI   VII. HDFC   [pic] Both in terms of business volume and market standing, HDFC stands head and shoulder above the competition in the home loan segment. With an expertise gathered over 25 years of existence in the business, HDFC has managed to create an impressive loan portfolio that caters to varied housing finance needs. HDFC offers home loans for individuals to purchase (fresh / resale) or construct houses. HDFC finances up to 85% maximum of the cost of the property which is inclusive of agreement value, stamp duty and registration charges. HDFC lends a maximum amount of Rs 1 crore and the maximum period of repayment is 15 years or retirement age, whichever is earlier. HDFC's Home Improvement Loan facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers). HDFC Land Purchase Loan can be used to purchase land. HDFC finances up to 70% of the cost of the land and repayment of the loan can be done over a maximum period of 10 years. Features: Maximum loan  85% of the cost of the property (including the cost of the land) and based on the   repayment capacity of the customer. Maximum Term  20 years subject to your retirement age. Adjustable Rate Home Loan  Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your loan may change. However, the EMI on the home loan disbursed will not change*. If the interest rate increases, the interest component in an EMI will increase and the principal component will reduce resulting in an extension of term of the loan, and vice versa when the interest rate decreases. Fees  1% of the loan amount applied plus applicable service taxes and cess. No Charges for    Part or Full Prepayment of loan under Adjustable Rate (except in case of prepayment through a refinance from other bank or institutions prepayment charges will be applicable)    Fixed Rate – Part prepayment upto 25% of opening loan outstanding in a financial year    Replacement of cheques Income Tax Certificates Accelerated Repayment Option VIII. ICICI [pic] ICICI Bank offers home loans for purchase or construction of house and the loan amount can be up to 85% of the cost of the property. The loan must terminate before or when the borrower turns 65 years of age or before retirement, whichever is earlier. ICICI home loans come with benefits like easy interest rates, simplified documentation, doorstep service and free personal accident insurance. ICICI MaxMoney Home Loans offer the unique advantage of higher loan eligibility with a lower initial installment. One can get up to 30% higher amount against one's current income and the installment amount gets stepped up over the years. ICICI SmartFix Home Loans combine the safety of fixed rates plus the advantages of floating rates. For the first 3 years the borrower gets a fixed interest rate and the fourth year onwards, the loan gets switched to the prevailing floating interest rate. Home Improvement Loans †¢ You can get a loan for renovation /refurbishment of your home. †¢ Get the same interest rate as applicable on Home Loans †¢ Avail of loan upto Rs. 50 Lakhs Avail of loan upto 70% of cost of improvement †¢ Enjoy repayment period of upto 15 years. IX. SUNDARAM FINANCE GROUP   [pic] The south-based Sundaram Home Finance Limited was launched on July 2, 1999, by Sundaram Finance Limited with equity participation from International Finance Corporation (IFC), Washington and FMO, Netherlands. After consolidating its business in the south, Sundaram Home Finance has made for ays in the Northern states as well. Sundaram home loans are offered for purchase or construction of any residential house or flat. The house/flat can be purchased from a builder or from a Statutory Authority. The maximum loan amount can be Rs. 1 crore or 85% of the agreement value, whichever is less. The tenure of the home loan can be 20 years or retirement age, whichever is earlier. Sundaram provides Home Improvement Loans to individuals for carrying out internal and external repairs to an existing home. The maximum loan amount can be Rs. 1 crore or 70% of the agreement value, whichever is less. The term of the home loan can be 10 years or retirement age, whichever is earlier. Sundaram Land Loans facilitate purchasing of land for construction of residential units. The maximum loan amount can be Rs. 1 crore or 50% of the agreement value, whichever is less. The tenure of the land loan can be 15 years or retirement age, whichever is earlier. Sundaram also provides loans against existing residential properties. The maximum loan amount can be Rs. 25 lakhs or 50% of the value whichever is less. The maximum term of repayment for salaried professionals is 10 years or retirement age whichever is earlier. Maximum loan:  Rs. 1 crore or 85% of the agreement value, whichever is less, subject to repayment capacity as assessed by SHFL. Maximum term of loan: Salaried Category:  20 years or retirement age, whichever is earlier for all salaried categories of customers. For Self-employed:  15 years or 65 years, whichever is earlier. X. Housing and Urban Development Corporation Ltd. (HUDCO)   [pic] Established on April 25, 1970, the Housing and Urban Development Corporation Ltd. (HUDCO) is a fully owned organization of the Government of India. HUDCO was instituted with the objective of providing long-term finance for construction of houses, undertaking urban development programmes and infrastructure facilities. HUDCO stands out in the burgeoning housing finance industry for its focus on the social aspect of housing and utility infrastructure provision. In spite of its commercial orientation, HUDCO has adopted a policy of preferential allocation of resources to the socially disadvantaged. It continues to emphasize on sectors which are more socially relevant rather than only on commercially viable and profitable sectors. HUDCO has played a stellar role in the implementation of National Housing Policy. It has been entrusted with the implementation of the priority programmes of the Ministry like Low Cost Sanitation, Night Shelter for Footpath Dwellers, Shelter Upgradation under Nehru Rozgar Yojana, Rural housing under Minimum Needs Programme. Although commercial banks and housing finance companies are doing brisk business in the swelling housing finance sector, the housing needs of the poor and low income groups have remained unaddressed. In such a scenario, HUDCO's role has become even more significant. HUDCO's social orientation of is evident from the fact that about 92 percent of the 150. 93 lakh houses financed by HUDCO are for the benefit of Economically Weaker sections and Low Income categories. In the face of growing competition, HUDCO has adopted innovation in its lending operations. HUDCO Niwas, which was launched in 1999, is an extremely popular housing loan scheme. Under HUDCO Niwas, individual housing loans are given directly to the borrowers instead of the established practice of disbursing loans through the state governments and their housing agencies. Moreover, HUDCO has moved the government seeking permission to enter the banking and insurance sectors. Property:  Housing Urban Development Corporation (HUDCO) offers Niwas scheme. The scheme is a housing finance instrument for individual families which offers loan assistance to individuals constructing or buying a house or a flat. Similar loan assistance is also extended to extend or improve an existing house or flat. Amount:   The maximum loan amount will not exceed 85 per cent of the total cost of the housing unit, including incidental costs like stamp duty and registration. The maximum loan amount granted by HUDCO is Rs 15 lakh. Payment Term:   It is normally up to 15 years, but the period will not extend beyond the age of 65 years of applicant. However, HUDCO Niwas will endeavor to determine the repayment period to suit the convenience of the applicant. In case the applicant wishes to extend the period of repayment beyond 15 years, it can be extended up to 20 years. Howev er, in such cases, additional interest of 1 per cent per annum will be charged over and above the regular rates. Summary of Financials of Select Housing Finance Companies in 2005 |PARTICULARS |LIC Housing Finance Ltd. |Can Fin Homes Ltd. Sundaram Housing Finance Ltd |HDFC Ltd. | |Summarised Balance Sheet | |Assets | |Loans |360,115. 00 |15,292. 70 |13,105. 00 |8,165. 27 | |Investments |31,300. 40 |1,201. 80 |333. 10 |218. 03 | |Fixed Assets (Net Block) |2,948. 0 |301. 00 |35. 80 |82. 77 | |Net Current Assets/Others |10,941. 10 |766. 10 |188. 60 |341. 31 | |Total Assets |405,305. 00 |17,561. 60 |13,662. 50 |8,807. 38 | |Liabilities | |Share Capital |2,491. 0 |501. 20 |204. 90 |265. 00 | |Reserves |36,339. 80 |1,394. 70 |1,320. 70 |469. 54 | |Total Shareholders funds |38,831. 00 |1,895. 90 |1,525. 60 |734. 54 | |Loan funds |366,474. 00 |15,665. 70 |12,136. 90 |8,072. 4 | |Total Liabilities |405,305. 00 |17,561. 60 |13,662. 50 |8,807. 38 | |Summarised Profit and Loss Statement | |Tot al Income |34,100. 80 |10,687. 20 |1,273. 30 |855. 43 | |Total Expenditure |21,532. 95 |8,611. 10 |991. 20 |648. 0 | |Gross Profit |12,567. 85 |2,076. 10 |282. 10 |206. 73 | |Profit After Tax |10,365. 53 |1,437. 20 |211. 20 |167. 08 | |Other Financials | |Dividend (%) |170 |50 |20 |21 | |EPS (Rs. |41. 74 |16. 21 |5. 06 |6. 31 | |Book Value Per Share (Rs. ) |179. 00 |140. 59 |37. 83 |27. 72 | |Capital Adequacy Ratio (%) |13. 40 |15. 00 |16. 46 |15. 71 | |Debt Equity Ratio |9. 44 |8. 26 |7. 6 |10. 98 | | CALCULATION OF LOAN On receiving a loan application, financial institutions carry out the credit appraisal of the applicant/s. Credit appraisal is the step that decides the loan amount an applicant is eligible for. The objective of credit appraisal is to determine the ability and willingness of an applicant/s to repay a loan. A set of financial and non-financial techniques is used to meet this objective. Different financial institutions have different methods and norms of credit appr aisal and for calculating the loan eligibility. Usually the ability to repay is determined by analyzing information like present income, consistency of income, experience, profession, additional sources of income, assets, liabilities, amount of installments of other loans (if any), past loan repayment history, investments, educational qualification, age, number of dependents etc. The financial ratios considered during the process of credit appraisal to determine the amount of loan an applicant is eligible for include; A. Installment to Income Ratio (IIR) Expressed as percentage, this ratio is calculated as IIR = (Home loan installment amount / Monthly income) * 100 Installment to Income ratio (IIR) denotes the portion of monthly income that can be spent towards home loan repayment. It is believed that about 35% to 40% of monthly income can be comfortably allocated towards home loan repayment. Based on this broad assumption, an IIR of 35% to 40% is considered to arrive at eligible loan amount. For example, at 40% IIR, an applicant having monthly income of Rs. 40,000 can repay Rs. 16,000 as home loan installment. As mentioned, an IIR of 40% is a broad assumption and can be higher or lower based on other parameters like consistency of income, experience, profession, additional sources of income, assets, liabilities, past loan repayment history, investments, educational qualification, age, number of dependents, age of dependents etc. In case of an earning co-applicant, co-applicant's monthly income can be clubbed with applicant's monthly income to increase the loan eligibility. With your monthly income known, you can calculate your approximate home loan eligibility as explained in the example below; Monthly income:Rs40000 IRR:40% Desired Loan Tenure :20 Interest Rate :10% STEP1: AFFORDABLE LOAN INSTALLMENT=(40000*40%) = Rs. 16,000 STEP2: Determine installment amount per lack of loan for desired loan tenure. In this example, installment for a loan of Rs. 1,00,000 for 20 years at an interest rate of 10% is Rs. 965 STEP3: Eligible Loan Amount = (Affordable loan installment / installment per lack) * 1,00,000 In this example Eligible loan amount=(Rs 16000/Rs. 965)*100000=Rs. 16,58,030 B. Fixed Obligation to Income Ratio (FOIR) Expressed as percentage, this ratio is calculated as FOIR = (Home loan installment amount + other loans installments) / Monthly income)} * 100 Fixed Obligation to Income Ratio (FOIR) is calculated to determine the portion of monthly income that can be spent towards home loan installment after considering other fixed obligations like car loan, consumer durable loan, deduction towards salary advance recovery etc. Statutory deductions such as provident fund, professional tax, investment s, insurance premium are excluded from the fixed obligation component. For example, for an applicant having a monthly income of Rs. 40,000 and a car loan installment of Rs. 4,000, at 40% FOIR, can repay Rs. 2,000 towards home loan installment {(Rs. 40,000*40%) – Rs. 4,000 }. Some of the financial institutions do not consider loans outstanding with maturity less than one year as fixed obligation and installment paid towards these short terms loans is excluded from the FOIR calculation. This means, your loan eligibility can be higher despite of short term fixed obligations. It is worth checking the institution's policy on fixed obligations before finalizing the lender. With your monthly income and other fixed obligations known, you can calculate your approximate home loan eligibility as explained in the example below; Monthly Income :Rs 40000 Car Loan Installment :Rs 4000 FOIR% :40% Desired Loan Tenure :20 years Interest Rate :10% STEP 1: Affordable Loan Installments = (Rs. 40,000 * 40%) – Rs. 4,000 (OF ALL OUTSTANDING LOANS)=12000 STEP2: Determine installment amount per lack of loan for desired loan tenure. In this example, installment for a loan of Rs. 1,00,000 for 20 years at an interest rate of 10% is Rs. 965 STEP3: Eligible Loan Amount = (Affordable loan installment / installment per lack) * 1,00,000 In this example Eligible loan amount=(Rs 12000/Rs 965)* Rs 100,000 = Rs12,43,000 C. Loan to value ratio (LTV) Expressed as percentage, this ration is calculated as LTV = (loan amount / property value) * 100 Loan to value (LTV) denotes the portion of value of the property that is financed by a financial institution. Each financial institution has a cap on maximum loan amount that can be extended towards financing a property. Most of the financial institutions offer loan upto 85% of the property value. The LTV offered by a financial institution may differ in certain cases. For example, LTV may be different for an approved project from an unapproved project. Instances where loan amount computed based on income (IIR/FOIR) is different from the loan amount computed based on property value (LTV), the lower of the two is considered as the eligible loan amount. SOME IMPORTANT POINTS TO BE MENTIONED: 1. Income of salaried class people includes :income of the applicant +income of the co-aplplicants(max2)+rental income(generally 50%) 2. Income of a self employed: It is determined by the INCOME TAX RETURN of the applicant +depreciation(generally100%) 3. The IRR and FOIR can be 100% only in certain exceptional cases. 4. Another important point to note is that as the tenure of the loan decreases the loan he loan he is eligible for also decreases. Will the Installment to Income Ratio (IIR) AND Fixed Obligation to Income Ratio (FOIR) always remain the same? No, it will not always remain the same. As the income increases both IRR and FOIR also increases but it generally remains in the limits of 40% to 70%. Reverse Mortgage Loan Many senior citizens, retired from work worry about the dwindling amount in their bank accounts? Wondering how to maintain a steady cash flow to meet their daily needs? An option often thought of to deal with this problem, is to rent the existing house which seems a liability and move to a smaller house or to sell the house altogether and invest the proceeds to earn a higher monthly income. Why not turn that liability into an asset? The answer – Reverse Mortgage. Reverse mortgage is a financial product that enables senior citizens (60 +) who own a house to mortgage their property with a lender and convert part of the home equity into tax-free income without having to sell the house. Instead of you making monthly payments to a lender, as with a regular loan, the lender makes payments to you. Multiple options are available for repayment of the loan in lumpsum at the end of the loan term. Maximum period of loan is of twenty years. The loan is not required to be serviced as long as the borrower is alive and in occupation of the property. On the borrower’s death, the loan is repaid through sale of property. About 350 crore worth of Reverse Mortgage has been sanctioned. The National Housing Bank has received innumerable calls of inquiry from senior citizens wanting to know more. It is to tackle this influx of calls and give each senior citizen attention as per his/her needs, that information and counseling centres will be functional throughout the nation, at various HelpAge offices in 10 cities of India: Delhi, Chandigarh, Lucknow, Hyderabad, Chennai, Jaipur, Bangalore, Kolkata, Ahmedabad, and Bhopal with especially trained staff. Qualifications for reverse mortgage eligibility ? Should be a Senior Citizen of India above 60 Years of age. ? Married Couples will be eligible as joint borrowers provided one of them being above 60 years of age and other not below 55 years of age. Benefits of a reverse mortgage: ? It aims at partially meeting the financial needs of senior citizens without selling the property and enables recurring funds inflows to the senior citizens during their life time. ? After the death of the senior citizen, the surviving spouse can continue to occupy the property till his/her demise ? It can also be an investment tool for youngsters who plan for a retirement solution. They can start investing in a housing property and take benefit of the same during their retirement life. They have a secured investment which has benefit of capital appreciation. In India, the Reverse Mortgage concept faces a few challenges: ? Indian culture dictates that property is bequeathed to heirs and housing property is a sign of social legacy. Indians have to work out of this mindset to adopt this novel concept. ? Also, on the legal front, handling the title transfer, possession of house, other regulation etc can be tricky. ? Last but not the least income tax treatment for money received from the HFC is also an open issue, since the loan disbursements cannot be considered as the income for senior citizens. Reportedly National Housing Board is working on the resolution of these issues and Reverse Mortgage will be introduced in a full fledged manner in India very soon. . HOUSING FINANCE-SCOPE IN INDIA [pic] Macroeconomic Background On the back of economic reforms undertaken in 1991, India has grown at an average rate of over 5% through the nineties peaking at about 8% in FY04. It is currently the fourth largest (in PPP terms) economy in the world with GDP output at USD 554 billion. India’s services led-growth strategy is well documented and is a departure from the rest of Asia’s manufacturing-led model for growth. Both domestic and global demand for India’s services remains robust with globally competitive firms emerging from the country’s historically protected private sector. With still much scope for reform, India’s healthy progress in liberalization, private sector-led development, and newly established political support (irrespective of the ruling party) for economic and structural reforms suggest that India could well be setting up the necessary conditions to support the type of long-term growth path over the next 2-3 decades. Inflation through the nineties has hovered between 7% and 13%. Demographics The population of India is over 1 billion and accounts for one sixth of the entire world’s population. The population is second only to China with one quarter of the world’s youth living in India. 54% of the Indian population is below the age of 25. In 2001 the productive population (age 25-44) was 278 million which, by 2013, will grow to 369 million; a growth of 33%. This explosive growth will result in higher demand for housing loans in the foreseeable future. According to the 2001 Census of India the total number of households in India is 191 million, up from 147 million in 1991. Much in line with world trends of falling household size, in India, the average household size has fallen from 5. 71 in 1991 to 5. 34 in 2001. This trend is expected to continue as individuals migrate to urban centres in search of work, coupled with movement away from the joint family system to single family households that is further accelerating lower household sizes. The following graphs interpret the emergence and bubble of housing finance in the country. [pic][pic] series1=housing finance series2=consumer durables series3=credit cards eries4=other personal loans Housing Finance The value of total residential mortgage debt moved up from USD 1. 84 billion in 1994 to USD 12. 26 billion in 2004; a CAGR of 21%. The housing finance market has recorded robust growth in the last 5 years, clocking an annual growth rate of about 40% between FY99 and FY04. Residential mortgage debt as a percentage of GDP was a mere 0. 58% in 1994 which has moved up to 2. 21% in FY04, still miniscule when c ompared to about 45% in the EU, 70% in the US and upwards of 30% in East Asian economies. Interest rates on housing loans have fallen from a peak of 17% in 1996 to 7. 5% last fiscal making owning a home more affordable. This combined with increasing loan tenures, increasing loan-to-value ratio and a rise in the installment-to-income ratio are precipitating high growth rates in the housing finance market. The organized lenders in the housing finance industry, comprising 30% of housing units constructed, are currently concentrated in the urban markets, with a greater presence in the major metros and Tier 1 cities. They are however, moving to the Tier 2 cities and smaller towns but are yet to venture into the rural markets. Also, salaried borrowers constitute the bulk of the clientele for the financier in comparison to the self-employed borrowers, who constitute a miniscule proportion. As a segment, the self-employed category is much bigger than the salaried segment, but the organized lenders have, historically, been concentrating on the salaried borrowers due to the lower risks associated with them. Traditionally housing finance was dominated by a handful of private sector institutions. These Housing Finance Companies (HFCs) commanded 70% market share in FY99, which has subsequently fallen to 50% In FY04 as a direct result of policy changes that permitted the entry of banks into this industry. Banks now control 40% of this market and continue to show explosive growth on account of government policy that categorizes this lending under priority sector lending and the low NPA levels experienced in this industry Shortage of Housing Official and updated statistics on the shortage of housing units in the entire country is not readily available. According to the National Buildings Organisation (NBO), the components of housing shortage include (a) the excess of households over houses, including homeless households, (b) congestion i. e. the number of married couples requiring a separate room, (c) replacement or upgradation of unserviceable houses and (d) obsolescence/replacement of old houses. The last official estimate on the shortage of housing units was from the NBO which estimated a total shortfall of 19. 4 million units comprising 6. 6 million units in urban areas and 12. 8 million units in rural areas. Further, over 90 percent of this shortage is for the poor and low-income category (Ministry of Urban Affairs, 1998). This, shortage however, is based on the 1991 Census figures and thus is outdated. The unofficial estimate of the housing shortage is currently pegged at over 40 million dwelling units. Despite the absence of reliable statistical information, the growing population and increasing urbanisation has resulted in rising pressure on the available housing stock. As per the Planning Commission estimates, the total requirement of urban housing during the tenth five year plan, covering the period 2002-2007, is 22. 4 million dwelling units in urban areas. This comprises two components – an urban housing backlog of 8. 89 million dwelling units estimated at the beginning of 2002 and an addition of 13. 55 million new dwelling units. As per the Census 2001, housing completions (defined as the absolute increase in housing stock during a particular period) is around 5 houses unit s per 1,000 population per annum in India. The average annual housing completion in urban areas per 1,000 population was steady at around 7 housing units during the past three decades. This however, is lower than the minimum threshold as recommended by the United Nations of 8 to 10 housing units per 1000 population for developing countries (NHB Trend and Progress Report, 2004). Table 1. 2: Addition of Census Houses per 1,000 Population |1971-81 |1981-91 |1991-01 | |Urban | |Added Census Houses (million) |11. 55 |16. 55 |19. 3 | |Added Households (million) |10. 00 |11. 64 |12. 95 | |Annual Housing Completions/1,000 population |7. 23 |7. 61 |6. 83 | |Rural | |Added Census Houses (million) |19. 25 |29. 02 |34. 56 | |Added Households (million) |15. 0 |19. 16 |25. 61 | |Annual Housing Completions/1,000 population |3. 66 |4. 62 |4. 65 | |Total | |Added Census Houses (million) |26. 53 |45. 58 |54. 08 | |Added Households (million) |25. 50 |30. 80 |38. 6 | |Annual Housing Completions/1,000 population |3. 87 |5. 39 |5. 26 | Source: Census 2001, NHB Trend and Progress Report, 2004 Rapid Urbanisation Housing needs are strongly influenced by growth in population and demogra phic changes. While in the recent period the total population growth has been slowing down, the urban population continues to grow rapidly. The urban population has increased from 20 percent in 1971 to almost to 34 percent currently (SSKI, 2006). Urbanisation is particularly concentrated in urban agglomerations or mega cities, defined as cities having a population in excess of one million people. These mega cities account for almost 40 percent of the total urban population. As per the 2001 Census, there were 35 mega cities and the polarisation of growth towards them poses a greater challenge in providing housing in these areas as the housing stock is unable to keep pace with demand (Nallathiga, 2005). This is exacerbated by the continuing trend of in-migration to urban areas. As a result, there has been a disproportionate rise of slums. For instance in Mumbai, almost 60 percent of the total population live in slums. Restrictive Laws One of the major issues constricting the addition of homes is the series of archaic laws governing the Indian housing and real estate sector. Of the over 100 laws governing various aspects of real estate, many date back to the 19th century. Significant ones are the Indian Contracts Act, 1872, the Transfer of Property Act, 1882 and the Registration Act, 1908. Despite the plethora of laws, the legal framework requires a complete overhaul to make it more relevant to today’s requirements. These laws often lead to prolonged litigation and create artificial scarcity of land, thereby raising prices. In India, land is a state subject1. Thus, while the centre may make amendments and issue guidelines, the responsibility for implementing it remains optional for a state government. With 28 states and 7 union territories (areas directly managed by the central government), support for reforms has varied considerably from state to state. ANALYSIS Despite the problems alluded above much development has been made by the country in the field to promote housing finance during the past few decades. With the entrenchment of HDFC in1977, a system of specialized housing finance companies(hfc’s) discussed above, now in hundreds was bought into being. This include 25 large and stable organizations which have been approved as eligible for refinancing from NHB which was formed in 1989. The institution as mentioned earlier is the watchdog for housing finance. It egulates all the HFC’S dealing in housing finance and then sets its rules, regulations and policies binding the same. The recent developments in the field mark the effort made. The recent cut in interest rates for housing finace below 20lac clearly bring up the role played by the agencies today in countering the problem of availability of housing finance. These coups will not only help consumers (middle and lower middle class) find a shelter for themselves b ut it will also motivate infrastructure companies to invest in building low cost homes for the desired category. This in turn will lead to increase in the the capital goods, development of infrastructure therefore overall development of society, increase in job opportunities for the labour class (which will earn more=spend more savings = continuous earning and spending=increase in gdp =increase in living standard). ASSESSMENTS AND PROSPECTS The housing finance market in India has undergone unprecedented change in recent times. This evolution has been interesting, especially for developing countries looking to establish or strengthen their primary housing finance markets. From a time where HDFC established itself as the first retail housing finance company, to the next level where HDFC helped broad-base and develop the market by co-promoting three housing finance companies, GRUH Finance, Can Fin Homes and SBI Home Finance. In effect, HDFC co-promoted its own competition. The third level saw existing players having to actually re-assess the way they did business as the tide of competition rose to an almost unsustainable level with the aggressive entry of banks into the housing finance market. And finally, the present stage where there are a few dominant players with large scale operations. India today is a good example for developing countries wanting to kick off their primary housing market. The advantage of using the Indian housing finance experience is that housing finance players have been successful despite unfavourable conditions such as not having foreclosure norms for several years, difficulty in accessing long-term funding sources, lack of clear titles, no reliable statistics on housing or consumer data and an acute shortage of housing units. Rather than waiting for the government and regulators to create a favourable environment to foster a housing finance system, the market developed despite these constraints. Pre-requisites for Well Functioning Housing Finance Systems Listed below are prerequisites for a well functioning housing finance system which are universal requirements for any country: ? Sound macro-economic policies: Low mortgage interest rates triggered by sound macro economic policies are more important in developing mortgage markets than tax incentives and subsidies. ? Keep transaction costs low and mortgage registration systems efficient. Concentrate on getting the â€Å"primary market† right, e. g. transparent property rights, mortgage and credit registration, efficient mortgage collateral and repossession procedures, before creating a â€Å"secondary market† to finance those loans. ? Create transparent markets for lenders through approved valuation methods, house price indices and data on mo rtgage industry. ? Protect and inform the borrowers, for instance, by helping them compare mortgages products. ? Access to long-term funding sources and other instruments such as covered bonds, mortgage backed securities. Broad Basing the Market Need for an Independent Floating Rate Benchmark There is a need to explore the creation of an independent benchmark for adjustable rate mortgages which can be adopted by all players, thereby leading to more credibility, especially in the case of upward movements in the benchmark. Better Access to Credit History India has no easily shared method of verifying a client’s credit history or loan record. This has resulted in the housing finance industry witnessing a rising number of fraud incidents in the sector. There have been instances of clients taking out multiple mortgages on the same property from different lenders or providing fake documents for the site that do not exist. To enable access to better credit history for customers and preventing malpractices, some important steps have been initiated in the recent period. In 2005, citing increasing cases of fraud in the system, the National Housing Bank has set up a ‘Fraud Management Cell’ to collect information from housing finance companies on frauds committed. The National Housing Bank as collected this data and issued circulars detailing causative factors and suggestive remedial action. . Removal of Conflicts of Interest The National Housing Bank’s role as a promoter should be considered as successfully completed. Serving as both a regulator and equity investor in housing finance companies creates an unnecessary conflict of interest (World Bank, 2004). At the time of inception, the National Housing Bank’s mandate was to promote the housing finance sector. Today this role is not required. Thus, there is no longer any rationale for the National Housing Bank to provide equity investments, thereby creating a conflict of interest as regulator and investor. Besides, in 2005, the National Housing Bank’s investments in housing finance companies was miniscule, accounting for less than one percent of its total assets. FUTURE EXPECTATIONS High interest rates coupled with soaring property prices have only impacted the affordability of buyers, demand, however continues to persist and will become stronger and more intense in near future. Housing Sector in India to Be On a Growth Spree By 2015 Housing demand is poised to see a growth of around 80 Million for the lower-income and the lower-middle income groups. Housing Sector in India is also likely to generate around 4 Million new jobs within a decade with a whooping investment of US$ 670 Billion. It’s also expected that housing and real estate sector will undergo a revolutionary transformation to grow at around 14% annually. Presently, the contribution of Indian Housing to the country’s GDP is modest at less than one percent. In 2010 the demand would further grow to a massive volume of around 400 Million Units. This will necessitate a minimum outlay of US$ 890 Billion. There is a shortage of more than nearly 20 Million housing units in India and this is a positive sign of the untapped opportunities for this sector. LIMITATIONS OF HOUSING FINANCE The housing sector in India for several decades faced a number of set-backs, such as an unorganized market, development disparities, a compartmentalized development approach and a deterrent rent control system. There was not even a concerted attempt to understand the housing problem let alone promote it. Reforms introduced in the sector during the 1990s, however, have overturned the situation to a great extent. The designing of a shelter policy, the organization of the housing finance market, the introduction of fiscal incentives, increased public investment, legal reforms and others initiatives have brought about a number of changes in the housing sector. Interestingly, these changes have been concerned with both reducing the housing shortage and increasing the number of quality housing stock besides increased access to various other housing amenities like safe drinking water, good sanitation and household electricity. In spite of the high growth rates exhibited by the Indian housing finance industry, this sector too has its share of problems. The survey revealed the following growth constraints: 1) Limited exposure of the industry Housing finance assistance of formal institutions has been limited to the middle income and high-income groups. Companies have also not been able to penetrate the rural areas. 2) Absence of proper title deeds High down payment requirement and non-availability of title deeds in the absence of land records are some of the reasons responsible for the inability of the companies in reaching out to the vast population living in the rural areas. 3) No access to long-term funds Non-availability of long-term funds with housing finance companies and banks results in an asset liability mismatch. 4) Lack of foreclosure norms Lack of foreclosure norms for housing finance companies, which, if in place, will encourage HFCs to disburse more loans ) Regional Constraints ? Disparity and high rates of Stamp duty across the country on registration leads to the suppression of the value of property/evasion of registration. ? Imposition of stamp duty on equitable mortgages (i. e. on property used as a collateral for taking a home loan), the rate of which varies across states acts as a deterrent factor in availing ho using finance as the prime security for these loans is equitable mortgage of the property financed. This form of stamp duty is a cost to the customers and should be done away with or reduced to affordable levels. ) Constraints faced by Housing Finance Companies as against banks ? Banks have access to lower cost of funds compared to HFCs because of the following reasons: †¢ Banks have access to low cost retail funds †¢ Minimum capital adequacy ratio for banks is 10% whereas for HFCs it is 12% ? The Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act 2002 is applicable to banks but not to housing finance companies ANNEXURE I 2009 will be the year of affordable housing 29 Dec 2008, 0342 hrs IST, Mayur Shetty, ET Bureau |[pic] | S Sridhar | |NHB chairman & MD | National Housing Bank (NHB) — a subsidiary of the Reserve Bank of India (RBI) — was created two decades ago to regulate and promote housing finance institutions in In dia. Given the current economic environment, home finance has gained centrestage, with housing construction being the largest employment generator with linkages to 250 ancillary industries. As the apex housing finance institution, NHB has taken several initiatives to promote affordable housing. In an interview with Mayur Shetty, NHB chairman and managing director S Sridhar speaks on why he expects 2009 to be the year of affordable housing. House prices have crashed in the West. There is an expectation among buyers that prices will decline in India as well. How do you see the situation? The situation in India is quite different from that of the West. In India, the conduct of the monetary policy and regulation over banks and housing finance companies ensured that the housing bubble did not develop. Further, the actual equity component in housing is much higher than in the West. Thus, housing prices in India have fallen a bit and may fall further, but unlikely to get into a free-fall situation. What needs to be done to reduce housing shortage? I expect 2009 to be the ‘year of affordable houses’, when affordable houses will be available to the middle and lower income groups in sufficient volumes. This will happen mainly through a combination of fall in house prices and reduction in home loan interest rates. The latter has happened. I hope developers reduce prices to stimulate demand and public housing agencies will take up affordable housing in a big scale. Additional hygiene factors are reduction in transaction cost in home purchases through reduction in stamp duty and registration charges and the availability of risk mitigants such as mortgage guarantee, title insurance, credit guarantee for lower income houses. Where do you see interest rates on home loans? Is the NHB refinance rate likely to come down further? Interest rates are headed southward. Public sector banks (PSU banks) have set the pace. Others, including housing finance companies, are following suit. NHB’s refinance rates have also come down to single digit. Refinance for rural housing at concessional rate of 8% per annum for seven years has also been provided. Our PLR has been reduced to 10. 75% per annum. NHB has announced a package for the housing sector. At what interest rate will you lend to HFCs? The refinance facility of Rs 4,000 crore extended by RBI to NHB will be on-lent by NHB to housing finance companies with the following major conditions. It will be available at an interest rate of 8%, and will be available only for loans below Rs 20 lakh. The facility is available up to March 31, 2010. You have launched an index of home prices. How is the index doing? NHB’s RESIDEX, which is India’s first official property index, was launched in July 2007 for five cities — Bengaluru, Bhopal, Delhi, Kolkata and Mumbai — covering the period 2001-2005. It has since been updated to December 2007. The property index has been well received. It is being expanded to cover 15 cities and up to December 2008 wh