The National Housing Bank has devised a strategy to meet the requirements of those people asking for minimum accommodation, and accommodation up to 40 sq m. Studies conducted by the Bank have revealed that 75 percent of the population cannot afford more than 40 sq m (two rooms, a kitchen, and a toilet), which on an average costs Rs.10.25 lakh in the city. Priority is given to the needs of the above class. In pursuance of its motto to help the small man first, the National Housing Bank has offered to finance land development projects of various public agencies on three conditions: (1) It will have to be an integrated project where the land actually becomes available for housing. (2) 75 percent of the housing units (or plots) to be developed should be less than 10 square meters; and (3) Preference for allotment must be given to those who are members of the National Housing Bank’s Home Loan Account Scheme. In order to encourage people to save specifically for housing and also to match the savings with long term institutional credit support, the National Housing Bank introduced the Home Loan Account Scheme from 1st of July 1989, through nationalized banks and several other scheduled banks. The scheme is a loan linked savings plan that enables one to secure a housing loan. In Kerala Houses , which are quite small, and with a minimum of 3 to 5 rooms are preferred by a majority of the middle class people. They now find it difficult to build large houses with more spaces. Recent studies have indicated that in a majority of the cases, the home loans from the prominent banks and financing institutions helped those people to complete the entire building construction works on time.