Shares For Girl Child, Courtesy LIC Housing Loans

LIC Housing Finance Ltd. seems to be mulling over the possibility of introducing a differentiated housing loan product in a bid to encourage the parents of the girl child to own a house.

Gurgaon, India (prHWY.com) March 10, 2012 - LIC Housing Finance Ltd. (LICHF) is India's second largest finance company with an outstanding loan portfolio of Rs 58,707 crore as on December-end 2011. With such an innovative product, it aims to kill two birds with the same stone. On one hand, parents of a girl child are likely to get enticed due to the incentive of getting the shares allotted in the name of their child. Second, such a move also aims to address the burning issue of female infanticide, by motivating parents to consider girl child as an asset and not liability.
In the words of Mr. V.K. Sharma, Director and Chief Executive, LIC Housing Finance (LICHF), "if a young couple with a girl child gets a loan from LIC Housing Finance then their child will get some shares of the company either gratis or at a notional value. When the child turns 18, the shares could be liquidated. This could fetch a substantial amount."
Learning through experience:
LICHF aims to draw from its experience of its parent company Life Insurance Corporation of India Ltd. (LIC) in bringing out such a gender-inclined scheme which is poised to take note of the gender issue. In this regard, Mr. Sharma pointed out that the Karnataka Government is implementing the Bhagyalakshmi Scheme with the help of LIC. In this regard, the state government deposits Rs 10000 in the name of girl child. LIC manages the fund in such a way that the child gets a yearly scholarship and also a lump sum amount when she attains majority.

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Concerned over skewed sex ratio:
Policymakers are concerned over a deteriorating picture of child sex ratio (0-6 years) which, as per the 2011 census, declined to 914 girls for every 1000 boys. In 2001, this figure stood at 927 girls for every 1000 boys. Ironically, such a fall in the child sex ratio has happened despite of the presence of stringent law banning pre-natal diagnostic practices. Societal preference for boys can be attributed to be behind such a skewed ratio. Also, such a product enables the company discharge its social responsibility effectively.

Quality Housing:
Mr. Sharma also pointed out huge demand for affordable, quality housing in the country vs. the poor supply-side response. Estimates of the Ministry of Housing and Urban Poverty Alleviation points out the housing shortage during the 11th plan period (2007-2012) being at 26.53 million units.

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