Mortgage Financing Rates
Till the economic renaissance of India in the early 1990s, the Indian mortgage industry was unorganized and the Indian mortgage financing rates were highly volatile. The government of India liberal economic policy in the early 1990s facilitated growth of the manufacturing industry in India, which further propelled the growth of infrastructure industry in India. Furthermore, with the growth of infrastructure industry in India the the Indian mortgage financing industry witnessed tremendous growth. The organized mortgage financing sector of India are registering astronomical growth and it is estimated to be US $ 18 billion industry. Huge real estate requirements in India and its subsequent development has fueled its growth and further helped it ease the Indian
mortgage financing rates.
Flexible Mortgage Rate - is one in which the interest rate varies according to market movements. This type of interest rate is called 'adjusting' or 'floating' rates. The risk factor is high in this type of interest rates.
Some of the well known mortgage financing companies operating in India are as follows -
Last Updated on 5/26/2011
The Indian mortgage financing rates are of the following types -
Fixed Mortgage Rate - in this case the rate of interest remains fixed throughout the loan term. The mortgage rates does not varies according to market conditions. In other words, the rate of interest is pre-fixed during the process of borrowing and it generally varies between between 12.5 % to 25 %.Flexible Mortgage Rate - is one in which the interest rate varies according to market movements. This type of interest rate is called 'adjusting' or 'floating' rates. The risk factor is high in this type of interest rates.
Some of the well known mortgage financing companies operating in India are as follows -
- LIC Housing Finance
- HDFC
- ICICI Home Finance
- SBI Housing Finance
- UCO Bank
- Allahabad Bank
- United Bank of India
- Kotak Mahindra Bank
- Citi Bank
- Standard Bank
- HSBC
- Ignorance amongst masses
- Poor accessibility
- Lengthy processing time
- Elaborate documentation
Last Updated on 5/26/2011
Important Concepts Regarding Mortgage