In a new report, the Planning Commission has looked closely at the way large loans are dished out to the country’s consumers.
It included a run-down of ways to shore up the property loan market, including how to better allow borrowers to put up collateral for loans.
The study, called ‘A Hundred Small Steps’ called for greater clarity on land ownership to allow more people to offer it as a security when applying for loans.
The report read:
“Land is probably the single most valuable physical asset in the country today.
“Unfortunately, the murky state of property rights to land make it less effective as collateral than it could be.”
Land purchasing could also be slowed up by flaws in the system, the department said, and courts were “clogged” with disputed real estate cases.
Land rights must be made more “clear and transparent” officials said, though they added this would be expensive to achieve.
India has two main systems of land records – a deeds registration system and a land revenue system of record of rights, both of which are confused by multi-agency administration.