How IAS Sanjeev Jaiswal Is Making MHADA Homes More Affordable Through Easy Loans and Smarter Financing

Housing affordability is not only about constructing homes. It is equally about whether buyers can realistically finance them. Under the leadership of IAS Sanjeev Jaiswal, Vice President and CEO of MHADA, this often-overlooked aspect of public housing is now receiving focused attention. The recent initiative by MHADA’s Konkan Board to offer easy and concessional home loans marks a strategic shift, aimed at converting vacant housing stock into lived-in homes and improving access to ownership for genuine buyers.

This move reflects a practical understanding of the housing market. Supply alone does not solve the affordability problem. Credit access does.

The Problem Behind Unsold MHADA Homes

Despite multiple housing schemes and lotteries, MHADA continues to face a significant inventory of unsold homes. Current estimates indicate that more than 12,000 MHADA houses, particularly under the Konkan Board, remain vacant. These are not luxury units. Most are designed for middle- and lower-income households.

The reasons for this gap are instructive. For many first-time buyers, the challenge is not eligibility or intent. It is the cost of borrowing. Even small differences in interest rates can significantly alter monthly EMIs, especially for homes priced under ₹25 lakh. In a high-inflation environment, financing costs often become the decisive factor.

Recognising this, MHADA has chosen to intervene where it matters most: access to affordable credit.

The Policy Shift: Financing as Housing Reform

Under the new initiative, MHADA has appointed a dedicated loan consultancy company to support buyers through the home loan process. This consultancy will coordinate with more than 10 banks, offering structured guidance on documentation, eligibility, and loan approvals.

The most significant aspect is interest rate support. Buyers can now access home loans at interest rates starting from around 7.35 percent, and in select cases, as low as 4 percent for homes priced up to ₹25 lakh under specific housing schemes. For an average buyer, this difference can reduce monthly outgo substantially, often by several thousand rupees.

From a policy lens, this is a demand-side correction. Instead of announcing fresh housing schemes, MHADA is improving the uptake of existing ones by addressing financial barriers.

IAS Sanjeev Jaiswal’s Focus on Outcomes

IAS Sanjeev Jaiswal’s approach to MHADA’s challenges has consistently emphasised outcomes over optics. Vacant homes represent idle public investment and unmet social need. By linking housing delivery with credit facilitation, the authority is aligning construction outcomes with actual occupancy.

This approach also reflects a broader administrative maturity. Public housing programmes often measure success by units built or schemes launched. Here, the metric shifts to homes occupied. That distinction matters.

Housing economists frequently note that affordability is a function of price, income, and interest rates. While MHADA controls construction costs and pricing, income growth is outside its mandate. Interest rates, however, can be influenced through institutional partnerships. This initiative leverages that lever effectively.

Targeting Genuine End-Users

The concessional loan facility is expected to benefit buyers in Konkan Board areas such as Virar, Bolinj, Shirdhon, and surrounding regions. These locations have witnessed housing development but slower buyer conversion due to financing constraints rather than lack of demand.

By easing loan access, MHADA aims to attract genuine end-users instead of speculative interest. This improves long-term occupancy, community stability, and the social objective of public housing.

Data from affordable housing studies suggest that reducing EMIs by even 10–15 percent can increase buyer conversion significantly in price-sensitive segments. The current loan support framework has the potential to deliver that impact.

Institutional Support, Not Short-Term Discounts

What differentiates this initiative from conventional sales incentives is its institutional design. Instead of offering one-time discounts or promotional offers, MHADA has invested in a structured system that simplifies financing over the long term.

The loan consultancy acts as a single-window support mechanism, reducing friction for buyers unfamiliar with banking processes. It also standardises loan offerings across multiple banks, improving transparency and comparability.

MHADA has clearly advised buyers to rely only on verified information published through its official channels regarding loan terms, interest rates, and eligibility. This emphasis on official communication is crucial, particularly in a housing market where misinformation can discourage genuine buyers.

Why This Matters for Public Housing Policy

From a governance perspective, this initiative highlights an important lesson. Housing policy cannot be siloed from financial policy. Construction-focused programmes without financing support often lead to inventory build-up. Financing-led interventions, on the other hand, can unlock demand without additional construction.

Globally, successful affordable housing programmes integrate land policy, construction, and credit. MHADA’s move aligns with this integrated approach.

For the state, this also improves asset utilisation. Vacant homes generate no social or economic return. Occupied homes strengthen communities, improve urban vibrancy, and justify public investment.

Looking Ahead

The real test of this initiative will be conversion. If easier loans translate into higher occupancy, the model could be expanded across other MHADA boards and housing authorities. It could also inform future housing schemes, where financing partnerships are built in from the start rather than added later.

Under IAS Sanjeev Jaiswal’s leadership, MHADA’s evolving strategy reflects a clear understanding of housing economics. Homes do not become affordable simply because they exist. They become affordable when people can finance them with confidence and clarity.

In a housing ecosystem often dominated by announcements, this shift toward execution-focused, buyer-centric solutions may prove to be one of MHADA’s most consequential reforms.