Housing Finance is also known as Home Loan and Owning a house is a dream for a majority of people in India and the housing finance company gives the best way to realize the said dream. Home loans which is also known as housing finance is the name of the finance provided by banks and other housing finance companies to procure a home by individuals. The individual then makes the repayment of the loaned amount over a period of time. Banks and other financial institutions charge an interest rate on the principal amount loaned thus making a handsome profit for themselves, thus it is a win-win situation for both the seeker and provider of the housing finance. This is how housing finance in India and majorly worldwide also works. Banks and other financial institutions offer housing finance as one of their products hence there are various home loan services options available in the market today.
Housing Finance Services Company
Although the housing finance companies in India, they are regulated by the government but still different companies providing housing finance services have varied internal working and regulations hence you may find minor variations in home loan services that they provide. Thus it becomes very important that an individual does proper research about processing fees, hidden charges, interest rates, early repayment penalties and much more before opting for a home loan from a housing finance company. Buying a house is a huge decision and many a times once in a lifetime decision for many individuals, it is almost impossible for a majority of the population of the country to buy a house with savings or liquid cash thus home loans are needed which are provided by banks and housing finance companies.
Housing Finance in India
Own home is both a financial asset and something that provides social security for an individuals, thus the government also encourages individuals to opt for home finance from banks and different housing finance companies and provides tax rebates for individuals. This helps the health of banks and other financial institutions which in turn helps to stimulate economy. There are a host of housing finance company in India providing home loan services to individuals. These housing finance companies provide various types of home loans to individuals such as loans for home purchase, land purchase, home construction, home improvement, balance transfer, mortgage loans, term loans and much more. Loans which the housing finance companies provide also has variations such as variation in interest rates charged, tenure of the loan, amount loaned, fixed or floating interest rate charged and much more.
Procedure of Housing Finance in India
The procedure of housing finance companies for providing housing finance services in India is pretty standard. The two primary factors that are taken into consideration are the amount of the property and the yearly income of the individual to ensure timely repayment of the loaned amount. The process which is followed is an individual applies for a home loans with a housing finance company, the company then allots a loan officer who helps individual fill the paperwork and collects the require documents and information. In the next step the individual may be invited for a personal discussion after which the bank’s field officer will visit the site for verification purposes. The next step is where credit worthiness of the individual is studied and the loan is sanctioned according. The registration of the property, signing of the agreement is done and lastly the disbursement of loan amount is done by the housing finance company. There are many housing finance, manufacturing finance, professional finance companies in India providing housing finance services thus it is important for an individual to choose the one with best reputation, services office and client serving record.