CHAPTER – 1INTRODUCTION1.

1INTRODUCTION TO HOME
LOANS
Home is a dream of a person that shows the quantity of efforts, sacrifices
luxuriesand above all gathering funds little by little to afford one’s
dream.Home is one of the things that everyone one wants to
own. Home is a shelter to person where he rests and feel comfortable.
Many banks providing home loans whether commercial banks or financial
institutions to the people who want to have a home.HDFC-
(Housing Development And Finance Corporation) Home Loan,
India have b e e n s e r v i n g t h e p e o p l e f o r a r o u n d t h r e e d e c a d e s a n d
p r o v i d i n g v a r i o u s h o u s i n g l o a n according to their varied needs at
attractive & reasonable interest rates. Owing to their wide network
of financing, HDFC Housing Loans provides services at your
doorstep andhelps you find a home as per your requirements.Many banks are
providing home loans at cheapest rate to attract consumers towardsthem. The
more customer friendly attitude of these banks, currently of fer to
consumerscheapest loan over homes.In view of acute housing shortage in
the country, and keeping in mind the social –
e c o n o mi c r o l e o f c o m me r c i a l b a nk s i n t h e p r e s e n t t i me s ,
t h e R B I a d v i s e d b a n k s t o encourage the flow of credit for housing
finance.With the RBI reducing bank rate, the home loan market rates
nose-diving by 50 basis points. The HDFC Bank and Standard
chartered bank has become the first player inthis sector to announce a
housing loan for a 20 years period. No doubt it will enhance theend
cost people to plan their house over longer duration now; it has been
made easy for a person to buy that dream house which he dreamt of long
ago.H D F C a l s o p r o v i d e s wi t h Ho me I mp r o v e me n t Lo a n f o r i n t e r
n a l a n d e x t e r n a l repairs and other structural improvements
like painting, waterproofing, plumbing andelectric works, tiling and
flooring, grills and aluminium windows. HDFC finances up to 85% of
the cost of renovation (100% for existing customers).Current status is that
HDFC reduced home loan rates by 50 basis points for all itsexisting
floating rate customers.
1.2 ADVANTAGES OFHOME LOANS:-
The various benefits of home loans arising to the customers are:-
(i)Attractive interest rates:-