PEARL Multidisciplinary Journal

Factors Affecting Housing Loan Decisions of Rural People in Kerala: A Study of Vellarikkundu Taluk in Kasaragod


Housing Finance plays a vital role as an engine of equitable economic growth through the reduction of poverty and prevents slum proliferation in economy. The demand for housing has increased rapidly day by day. Percentage of families owing house in India is 87 percent. The introduction of banking finance for housing purposes is a big boost to the customers and the economy. It is also linked with other industries like cement, steel, blue metal, and so on. The housing finance decisions of people in rural areas are influenced by a number of factors. They also were facing different problems while getting such loans. Interest rate of the loan varies from institution to institution, the period of repayment of loan ranges between 5 to 20 years and some enjoy tax benefit.



Housing Loan, Rural People, Interest Rate, Source of Fund, Tax Benefit.

Author Affiliations

Soji Sebastian M1 , Karunakaran N2

1. Department of Commerce, EKNM Government College, Elerithattu Nileshwar, Kerala - 671314

2. People Institute of Management Studies (PIMS), Munnad Post Chengala, Kasaragod, Kerala - 671541


February 2021

Volume 7

 No 1