subject: Options For Taking The Home Loan In India [print this page] It was to bridge the high demand-supply gap in housing sector that the government of India opened the field for the private players and made conditions suited for off-take of housing sector. One of the key elements of the policy was the provision for providing the home finance to the buyers at attractive rates of interest. The rationale for providing housing loans at reduced rates on interest for a long time period was that a large number of people shall be able to buy these houses. If you, too, are looking to purchase some property today, you would definitely inquire into the finance availability. So, what are the different sources which you would tap if you have to take a home loan in India?
Banks
Banks are the first most obvious choice of customers since these are able to offer the loan at the lowest possible rates of interest. Further, these are the most credible entities to take the loans from. Being regulated by the federal and the state agencies, these are also the entities with whom you deal directly for all matters related to your loans. Another benefit of having the loan is that these are able to process your loan faster than the other providers.
Brokers
The brokers are the intermediaries which match your requirements of the loan with the products of many lenders whom they represent. They suggest you the best possible lender and its product which would be able to meet your housing finance requirements. Their role becomes crucial in cases where there is a need for you to select the right bank which meets your requirements. The broker plays the steering role and helps you in approaching the right lender. However, its role is limited only to this extent. The lending is actually done by the lender directly to you.
Private Non-banking Finance companies
Home loans can also be granted by the private firms in just the same way as the banks provide the finance. Some of the private home finance companies have nationwide presence. These companies most often provide loans even to those customers who do not have a very strong case in favor of getting the finance from the banks. These might charge a little higher rate of interest than the banks but the motive of home buyer of getting the loan has good chances of being met with these private finance companies.
So, it is not just the banks but also other private players from whom you can take the home loan. Most often the cases which are not likely to get the loans from the banks or have been refused the loan by the banks make use of the other two options. All leading real-estate companies have their projects approved for home finance from the leading banks and non-banking financial companies so that the buyers do not face difficulty in getting the loans. However, all the sanctions of loans are given on case-to-case basis.
