Formal Housing Finance Provides Finance For Constructing and Building a New House, Renovating an Old House, Purchasing a Landflathouse. the Source For Formal Housing Finance In India Has Different Categories Which Are Generally Governed By the Rule and Regulations of Rbi Norms Which Is Subjected to the Guidelines to Banking Regulation Act. Formal Housing Finance System In India Is Mainly Regularized and Supervised By National Housing Bank Which Is the Apex-Level Financial Institution For the Housing Sector. Even the Government Goal Is to Provide “House to All” Under Pradhan Mantri Awasiyayojna Till 2022 Through Providing Subsidy to Rural Poor and Encouraging the People of Rural Area to Open Account Under Jan Dhanyojna. People of India Who Are Working In Formal Sector Can Easily Access the Loan from Formal Funding But the People Who Are Working In Informal Sector Have to Face Various Obstacles In Order to Get Loan Facility from Banks and Nhb Therefore Pmay Provide Loan to Informal Workers Too. Formal Housing Finance Have Various Formalities Associated Before Granting the Loan But This Source Have Made the Dream of People to Build Their Own Home In a Very Easy Way and If They Show All the Legal Documents Then They Can Apply For the Loan and Get It Within Few Months After Processing Period. This Has Made Easy to Have Own Home and Indirectly Supports In the Overall Development Ofa Person.