Housing is one of the most basic requirements for the survival of human beings
. Housing is especially significant for those who fall under the rural poor category. This is because shelter, in the form of a house, provides them with dignity of life, removes the fear of abandonment and gives them a sense of belonging and security. The housing shortage in India is one of the most important issues faced by us today. According to the 2001 Census, the rural housing shortage figure is at 148 lakhs. Efforts are being made by banks and institutions to solve the economic development problem in the country.
Rural banks are an important component of our countrys rural credit structure. The most important purpose for the creation of rural banks in India is to provide credit to those living in rural areas. This is because rural farmers, artisans, labourers and even small entrepreneurs living in these areas are not financially strong enough to support themselves. Certain banks provide home loans to a wide range of clients in rural as well as semi-urban India. These home loans are cost effective as well as flexible. These loans are meant to help customers in the areas of house construction, purchase, extension and general improvement. The main purpose of these loans is to ensure that rural housing is provided to those who need it, as quickly as possible.
Some rural banks also take responsibility for upgrading the numerous non permanent housing structures in rural India. Most of the houses found in the rural parts of India are made out of mud; they are not firm and are known as Kuccha houses. The aim of these banks is to convert these temporary structures into something more permanent. They do this by converting these mud houses into brick and mortar houses. These brick and mortar houses are known as Pukka houses. These rural banks have also provided funding for various rehabilitative efforts such as removing the rough cement flooring of these rural houses and replacing it with tiles. All these moves have been undertaken by rural banks in an effort to make the housing conditions across rural India more liveable.