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The housing sector is one of the key indicators of economic progress of a nation. An amount spent in this sector will create a multiplier effect on various aspects of the economy giving further boost to economic growth. While considering the basic needs of a population, housing ranks second in its importance. Therefore, it is considered as basic human right in a democratic country like India. A good house and a better environment will make a person worthy citizen, contributing much towards healthy growth of the society. Every authority should ensure sufficient provision of funds for fulfilling this dream. Both nationally and internationally, fulfilling the requirements of adequate housing is considered as a right to all. The central and state government have made active contribution towards the development of housing sector. The government initially played the role of a provider. But with the realization of the fact that the demand in housing sector is increasing at a higher pace rate, government allowed more and more players to enter this sector. Rapid urbanisation has further created an impetus to the housing sector. On the other side increasing property price and lack of sufficient funds act as a hindrance for many for fulfilling their dream. Increasing demand coupled with insufficient supply have further alleviated the problem of housing. The provision of funds provided by government is not sufficient to meet the housing finance requirements. So, the government has shifted role from provider to facilitator. Liberalization policy adopted by the government has made a favourable atmosphere for private sector institutions to enter the field of housing. So, in addition to government agencies, other non-government agencies started playing a key role in this sector. On the other side, besides encouraging other major players to enter the market, government always has taken keen interest in creating a favourable atmosphere for housing providers and borrowers.In a developing state like Kerala, adequate housing is an essential requirement. Due to the favourable atmosphere, growing industrial background, emergence of so many industries, most of place getting metropolitan and the wish to stay near city have attracted many people to the state of Kerala. So, housing finance has been playing a key role in realizing the dream of owning a shelter in Kerala. The commercial banks and HFCs from both public and private sector are playing a lead role in meeting these demands. So, study aims to find out how far the customers are availing the services of institutions in both sector and in this competitive situation how far each institution can meet the challenge of persuading the borrowers to avail their loan products compared to others. With the emergence of private sector, the public sector institutions are facing stiff competition, as private sectors are always offering additional benefits in relation with others. So, the study aims to find what is the role of public and private sector in meeting the demand of various sections of the society.