Home Loans – a Force Behind Real Estate Boom

November 22nd, 2009 |

The home loans or housing finance has been a force
of significant importance behind the real estate boom
in India. Home loans in India have enabled the real
estate industry to achieve new heights.

It will not be wrong to say that finance is the very life
line of the real estate industry in India.

Everybody from the developers to the buyers rely on
the finance provided by the banks and housing finance
companies in India to give shape to their dreams.
The finance industry has been growing very rapidly
 in India and has been providing seamless credit
facilities to all class of people.

The home loans / finance facility is provided
 by almost all the government and private banks
 governed by the Reserve Bank of India (RBI).

Their facility of home loans can be availed for
 various uses like purchase of property, renovation,
construction etc. Apart from this you can also get
home equity loan, a unique concept wherein the
borrower can mortgage his existing property to
avail loan that can be used for any kind of purpose
as desired by the buyer.

Generally, people avail home equity loan facility
for the purpose of marriage, education, or bearing
medical expenses. The maximum loan amount that
banks normally offer is about 60% to 65% of the
 market value of the property.

The housing finance companies follow a very
stringent process while providing a home loan.
The loans are disbursed in line with the credit
policies of the home finance bank and financial
 institution.

As part of their process, banks verify the credit history
 of the borrower to ensure that he/she is not a defaulter
 with some other financial organization or if he/she has
misused any of the banking products.

A dream home of your choice comes into existence
only after a lot of investment of money and time.
Therefore, it becomes very important to keep this
treasured property protected from possible risks and
dangers.

Home insurance is the best way to protect your
 home from all potential perils. The risks that can
be covered under a home insurance policy can
range from loss that can occur due to natural
calamities like fire, earthquake, and cyclone
or to insure the contents of the house from theft
or damage.

The home insurance in India is still at a
 very embryonic stage and is being promoted
 by many private and government general insurance companies.

Getting home loans is not much of a problem
today provided you are eligible to take one.
There is a cut-throat competition amongst the
 housing finance companies to make their offers
more attractive.

This fray is good for the customers as they get
home loans at affordable terms. Home loans in
 India has come a long way and has got widespread
 acceptance as more and more people are purchasing
through this mode.