Housing Finance Companies

HOUSING FINANCE COMPANIES

Public Sector
BoB Housing Finance
Can Fin Homes
LIC Housing Finance
Ind Bank Housing
PNB Housing Finance
SBI Home Finance
Private Institutions
HDFC
ICICI

HUDCO
GE Money Home Loan
Sundaram Finance Group

Housing Finance Companies provide Home Loans as well as Home Insurance in India.

1. Bob Housing Finance Ltd.

Purpose 
For purchase of land /site from Govt./statutory bodies such as housing boards, Development
Authorities/CIDCO etc. Learn More

1. Canfin Home Loans

After having seen over a lakh satisfied customers secure their own homes, Can Fin Homes now looks
toward your home financing requirements. Having spent over a decade in the home finance business,
we are well placed to understand the significance and importance of your need to own a home. Learn
More

2. IND BANK HOUSING LTD

. 
Loans to Indian Resident Individuals

1. Quantum of Loan

o Purchase/Construction

o Minimum - Rs 7,500/-

o Maximum - Rs 25,00,000/-
o Upgradation/ Major Repai
 o rs/ Additional Construction

o Minimum Rs 7,500/-

o Maximum Rs 5,00,000/-

Learn More

3. PNB Housing Finance

We provide housing finance to individuals for construction or for acquisition/ purchase of house/ flat
from development authorities such as DDA/HUDA/ PUDA/RHB etc. and also from private
builders/groups housing societies. Learn More

4. SBI Housing Loan

SBI Housing loan schemes are designed to make it simple for you to make a choice at least as far as
financing goes! Learn More

5. GE Money Home Loan

o Shift to your dream home today

o Still living in a rented apartment?

o Is owning your own home still a distant dream.

Learn More

6. HDFC Housing Finance

A new home brings with it new hopes, joys and emotions. At HDFC, we have shared new hopes, joys
and emotions with over 26 Lakh customers. Every customer has a specific and unique concern.

Learn More

7. HUDCO NIWAS

INDIVIDUAL HOUSING FINANCE SCHEME (FOR RI'S)

Property: 
Housing Urban Development Corporation (HUDCO) offers Niwas scheme. The scheme is a housing
finance instrument for individual families which offers loan assistance to individuals constructing or
buying a house or a flat. 
 Learn More

8. ICICI Home Loan

ICICI Bank offers easy home loans for purchase / construction of flat / house. Also you can avail of
host of other benefits like:

o Attractive Interest Rates

o Simplified Documentation

o Doorstep Service.

Learn More

9. LIC Housing Finance

Loan Amount : Min. Rs. 25,000 - Max.Rs.1,00,00,000. 

Loan to Property Cost : 85% of total Cost of the property including Stamp Duty and Registration
Charges.

Learn More

10. Sundaram Finance Group

Availing Home Loans you could

o construct a house on your plot of land

o purchase an apartment from a builder

o purchase a bungalow/apartment on a second hand basis.

Industry Classification
Life cycle position
Housing finance as a financial service is relatively young in India. The growth in
housing and housing finance activities in recent years reflect the buoyant state of the
housing finance market in India. The real estate sector is the second largest employment
generator in the country.
In 1970, the state set up the Housing and Urban Development Corporation (HUDCO)
to finance housing and urban infrastructure activities, in 1977, the Housing Development
Finance Corporation (HDFC) was the first housing finance company in the private sector to
be set up in India.
Currently there are 29 HFCs approved for refinance assistance from NHB.
The following types of home loans are generally available in the market:
·         Home Equity Loans: A form of finance to the customer by way of mortgage of
existing property to the financier for taking a loan for some other purpose. The current
market value of the property is the basis for providing home equity loans.
·         Home Extension Loans: The purpose of this loan is the extension of existing
houses tike the addition of rooms, toilet facilities etc. Such loans fall under the category of
home loans.
·         Home Improvement Loans: These loans are provided mainly for repairs and
maintenance of existing houses- These could include internal and external repairing,
waterproofing and roofing, complete interior renovation, tiling and flooring etc.
·         Home Purchase Loans: Finance provided for the purchase of ready-made houses.
·         Land Purchase Loans: These loans are being provided for the purchase of land for
the purpose of construction of residential houses.
Business cycle

 
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External Factors
Government
 
Policy Annoucement in Last Quarter
 
NBFCs’ growth had been constrained due to lack of adequate capital.
On 2 January 2009, the government and the Reserve Bank of India announced another set
of measures to stimulate the economy, after having announced a few measures in
December 2008. The package focuses on:
Reviving demand for the housing sector by facilitating Rs.4,000 crore refinancing facility for
National Housing Bank (NHB), granting priority sector lending status to loans upto a maxi
mum limit of Rs.20 lakh per dwelling per family by housing finance companies with the
approval of NHB, concessional treatment to commercial real estate loans which have been
restructured upto 30 June 2009 and lowering the interest rates on home loans upto Rs.20
lakh.
The package will not provide a major boost to the residential market immediately as
property prices play an important role while making a buying decision. Property prices
continue to remain high with an average home in metro cities costing well above Rs.20 lakh,
the upper limit of the amount on which interest rate concession is granted.
The government eased the external commercial borrowing (ECB) norms by allowing non-
banking finance companies and housing finance companies to raise money overseas through
FCCBs subject to RBI approval.
General Policy
 
Policy Changes Expected in the Near Future
 
 
 
Social
The mortgage penetration continues to remain abysmally low – in India the mortgage to
GDP ratio is at around 6% (in FY08) against over 51% in the USA. Even if one were to
benchmark against more comparable counterparts, the ratio ranges from 15% to 20% for
most South East Asian nations.
High down payment requirement and non-availability of the title deeds in the absence of
land records are some of the reasons responsible for the inability of the companies in
reaching out to the vast population living in rural areas.

Demographic
Housing finance assistance of formal institutions has been limited to the middle-income and
high- income groups. Companies have also not been able to penetrate the rural areas.

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Demand Analysis
End users
The housing finance sector in India has undergone unprecedented change over the past two
decades. The consumption pattern amongst the Indian population is expected to change
2013. The strivers are less but aspirers and rich are significant higher compared to 2003. 
 
Real and Nominal Growth
The tower interest rate regime, rising disposable incomes, stable property prices and fiscal
incentives made housing finance attractive business for commercial banks. Further, housing
finance traditionally has been characterized by low nonperforming assets (NPAs) and given
the vast demand for housing loans, almost at t the major commercial banks plunged into
the business of housing finance. The robust growth during the last decade has been
triggered by a number of factors, some of which are listed below:
·         Tax rebates on housing loans announced consistently in the annual budgets of the
country.
·         Fatting interest rates on home loans: Fixed interest rates calculated on an annual
rest basis for a loan of Rs. 1 million for tenure of 15 years have fatten from 16% in 1997-98
to 9.5% in 2005-06. Floating rates for short maturity housing loans are today hovering in
the range of 7.75-9.75%.
·         Greater amount of professionalism of the real estate developers and builders who are
capable of acquiring clearer titles and completing the projects on time.
·         Borrowers can raise up to 100 % of even 110% (in which case the tenders provide
financial assistance for the complete property value, stamp duty, registration and an
additional 10% is given for the interior decorations) of their borrowing requirement from the
tenders.