Financing Residential property
The country’s mortgage practices are based on promissory notes. In this case, real estate developers give a written promise to repay their loans and as a result, they receive funding from financial institutions. This is guided by the Negotiable Instruments Act, 1881 in its Section 4. Both domestic and foreign investors in India have the qualifications that they must meet in order to receive loans. In general terms, one is required to be over 21 years of age. For foreigners, they should not be over 60 years (Palande et al. 41). Other requirements depend on individual financial institutions. There are no specified mortgage rates. For instance, the rates depend on the financial institutions and the policies that they have in place. The rates for women, for instance, are lower than that of men. However, the rates range between 10 % and 11 %. The rates for foreign investors are also higher when compared to the domestic borrowers.
Essentially, the primary market is concerned with raising fresh capital in form of debentures and shares. In India, this market is crucial as it accelerates economic and industrial development. Secondary market, on the other hand, refers to the market where the securities that were issued previously are bought and sold. This can only be achieved through stock exchange mediums. It creates liquidity in securities. India’s mortgage originators and investors are the loan providers who mostly involve themselves in the insurance sector and the financial services sector. They include housing finance corporations, financial institutes and commercial banks. Some of the banks include the Bank of Baroda, United Bank of India Mortgage Scheme and the Union Bank of India Mortgage Scheme.
Banks will be more than content to lend you money given you are qualified and the property papers are approved. It will be beneficial to get