Mortgage Financing Company

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Till the economic renaissance of India in the early 1990s, the Indian mortgage financing company was an unorganized industry. 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 company witnessed tremendous growth. Today, the organized mortgage financing company 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. The Indian mortgage financing company could break open from its age old image of being housing mortgage facilitator only. Today, the mortgage financing company of India are also offering mortgage loans for the following properties -
  • Amusement parks
  • Bowling centers
  • Casinos
  • Auto care centers
  • Auto dealerships
  • Car washes
  • Parking garage
  • Truck terminal
  • Conveniences stores
  • Distribution centers
  • Fitness centers
  • Franchises
  • Funeral homes
  • Gas stations
  • Golf courses
  • Malls
  • Retail (anchored, single tenant, unanchored)
  • Mobile home arks
  • Movie theaters
  • Resort
  • Restaurants
  • Hotels
  • Motels
  • Hospitals
  • Medical clinics
  • Medical offices
  • Nursing homes
  • Rehabilitation facilities
  • Skilled nursing facility
  • Special purpose property
  • Child care centers
  • Independent living facilities
  • Mixed use properties
  • Single family
  • Offices (multi-tenant, single tenant)
  • Warehouse
  • Industrial parks
  • Industrial buildings
  • Land developments
  • Mini warehouses
  • Office buildings
  • Outlet centers
  • Educational institutions
  • Training institutions

Some of the well known mortgage financing company of 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
Although, size of organized sector account only for 25% of the total housing investment in India and is consistently registering 20-50 % growth on year-on-year basis from 2000 onwards. This industry is heating up and there is a mad rush for credit and the market is estimated to grow at a lightening pace in few years to come.

The investment in housing has grown steadily over the past years as the proportion of outstanding housing loans as percentage of GDP increased from 3.4 per cent in 2001 to 7.25% by 2005. To help the Indian mortgage financing company grow and fulfill its huge requirements the Indian mortgage industry needs indirect government participation, as a guardian and facilitator. Private funds and even FDI should be encouraged to see this industry grow further. Overall revamping of land laws, rental laws, fast mutation and registration process along with setting up of credit rating organization and mortgage insurance is the need of the hour. Further, special efforts should be made to attract middle and lower middle class investments since, a large section of the middle class Indian are still skeptical about mortgage finance loans.

Last Updated on 5/26/2011