{"id":4586,"date":"2011-07-04T00:21:03","date_gmt":"2011-07-03T18:51:03","guid":{"rendered":"http:\/\/greenworldinvestor.com\/?p=4586"},"modified":"2011-07-04T00:21:03","modified_gmt":"2011-07-03T18:51:03","slug":"india-housing-finance-guide-to-list-of-top-home-loan-companiestypes-of-loansinterest-ratesnational-housing-bank-actlawstax-benfits","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2011\/07\/04\/india-housing-finance-guide-to-list-of-top-home-loan-companiestypes-of-loansinterest-ratesnational-housing-bank-actlawstax-benfits\/","title":{"rendered":"India Housing Finance – Guide to List of Top Home Loan Companies,Types of Loans,Interest Rates,National Housing Bank Act,Laws,Tax Benfits"},"content":{"rendered":"

Why Housing Finance<\/strong><\/p>\n

Housing is the one of the basic needs for every human being, with Food, Clothing and Education being the other three. Housing is an important component and a measure of socio\u2013economic status of the people. Housing being the one of the essential needs of mankind, the demand for shelter grows in line with the increase in population and the standard of living, hence the need of financing the purchasing of a House came up. The importance of the housing sector can be judged by the fact that we consider house as the best investment and want to invest our hard earned money or saving in a house. The need for Finance to purchase a house brought out specialized Housing Finance Institutions. The Housing Finance Companies (HFCs) as they are called today, have stepped up their lending over the years contributing to the growth of the housing sector.It is important to choose a good housing finance company which can handhold the customer right through his home buying process. Since a home loan is a long term commitment of 15-20 years, several factors like expertise, quality of service, in-depth domain knowledge and the company\u2019s level of commitment and transparency right through, the loan procedures, the fine print, quality of services offered and safe retrieval of the title deed are critical.<\/p>\n

Interest Rates on Housing Loans in India<\/strong><\/p>\n

The interest rates being charged depend a lot on the time,the creditworthiness of the borrower,the housing loan provider etc.However in recent times the home loan interest rate range has been about 8 per cent to 16 per cent with respect to HFCs and 9 per cent to 14 per cent so far as Public Sector Banks are concerned.With interest rates at a high due to high inflation,a number of Indian Real Estate companies<\/a> have come under pressure to lower rates.There are two kinds of interest rates for housing finance<\/p>\n

Fixed rate – As the name implies,the interest rates are generally fixed during the entire term of the loan.Fixed Rates are generally higher than the current Floating Rates as Housing Loan providers prefer Floating Rates.<\/p>\n

Floating rate – This type has the interest rates  dependent on the current interest rate set by the RBI and generally varies  a lot.<\/p>\n

Types of Home Loans<\/strong><\/p>\n