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Two Columns

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Home is one of the things that everyone one wants to own. Home is a shelter to person where he rests and feels comfortable. Many banks provide home loans, whether commercial banks or financial institutions, to the people who want to have a home. Many banks are providing home loans at cheapest rate to attract consumers towards them. The more customer friendly attitude of these banks, currently offer to consumers cheapest loan over homes. In view of acute housing shortage in the country, and keeping in mind the social – economic role of commercial banks in the present times, the RBI advised banks to 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 Union bank of India has become the first player in this sector to announce a housing loan for a 20 years period. No doubt it will enhance the end 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. HDFC also provides with Home Improvement Loan for internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminum 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 its existing floating rate customers. 1.1 ADVANTAGES OF HOME LOANS The various benefits of home loans arising to the customers are:-Attractive interest rates:-The various banks offer attractive interest rates to boost and help their customers. Many banks provide loans on fixed or floating rates to facilitate consumers as per their needs.Help in owning a home:-The home availed by a person with the help of banks, because they provide technical and

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