Rajan Gives Fillip to Modi's Goal of Housing for All by 2022

  • Mortgages at less than 10% of GDP signal room for growth
  • PM Narendra Modi aims to build 20 million homes by 2022
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Prime Minister Narendra Modi’s goal to put a roof over India’s 1.3 billion people just got a fillip.

After slashing the benchmark repurchase rate by a more-than-expected 50 basis points last month to a four-year low, Reserve Bank of India Governor Raghuram Rajan on Oct. 8 eased mortgage rules, allowing lenders to set aside less capital to cover home-loan default risks, effectively helping lower their cost of funds.