India's economic liberalisation and financial reform policies determin
e its housing finance sector, which is developing and expanding, parti
cularly in the private sector. The housing finance market is regulated
and supervised by the National Housing Bank, which tries to stimulate
housing finance corporations serving the small man. The reasons why t
he attempts of down-marketing housing finance through the private sect
or are not as successful as may be expected are highlighted. This case
study shows that the potential of down-marketing housing finance anti
cipated by neo-liberalism is rather limited. Furthermore, it teaches u
s lessons which may be useful for the development of the housing finan
ce market in other developing countries. Copyright (C) 1997 Elsevier S
cience Ltd.