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Housing Loan From A Housing Finance Company Research Team | Posted On Friday, March 08,2019, 12:40 PM

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Housing Loan From A Housing Finance Company



What is a Housing Finance Company?

Housing finance companies are non banking financial companies, NBFCs, that offer home loans to help borrowers purchase, renovate, construct and reconstruct houses. These companies are giving stiff competition to banks when it comes to home loans. All housing finance companies are registered under the Companies Act, 1956.

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SEE ALSO: Housing Finance Company

Housing Loan From A Housing Finance Company

Reasons To Avail Home Loan From A Housing Finance Company

Banks offer home loans at a lower interest rate than most housing finance companies. But, banks have very stringent guidelines when it comes to eligibility and property evaluation. Banks do not compromise on these guidelines and reject the loan application without hesitation.

Banks conduct a thorough technical evaluation of your repayment capabilities and evaluate the property’s market value, property’s construction plan and so on called due diligence. Banks sanction the loan only if all the requirements are met. Imagine you or the proposed property does not meet the loan eligibility criteria. This is when a housing finance company comes in the picture. Housing Finance Companies HFCs, are quite lenient with loan guidelines and are ready to offer loans even when there a few deviations from the set loan eligibility criteria. Below mentioned are some of the reasons why housing finance companies are great for loans:

  • Property is not approved: If the building construction deviates from the actual approved plan by the registrar, then the property would not be given the relevant approval certificates.
  • Rejection due to valuation: If the market value of the property does not meet the loan amount requested, then your loan application would be rejected by the banks.
  • Bad credit track record: Banks may reject your loan application citing bad credit history. HFCs offer to fund your house but at a higher interest rate.
  • Employed in a small orgabization: If you are employed in a small company, then there are high chances of banks rejecting your loan application. But, HFCs may offer loans to you.

If your home loan application is rejected by banks due to any of the above mentioned reasons, then you can apply for home loans from housing finance companies as they are ready to negotiate on the loan eligibility criteria.

SEE ALSO: Reasons For Home Loan From Housing Finance Company

Below mentioned are the top housing finance companies in India:

Can Fin Homes Limited (CFHL)

Can Fin Homes Limited CFHL, was established in 1987 and is promoted by Canara bank. CHFL was founded with a view of promoting house ownership and increase housing stock across India. CHFL is the first and biggest bank sponsored housing finance company in India and is one of the top players in the country’s housing finance sector. CHFL has 151 branches, 21 loan centers and 14 satellite houses spread across India. CHFL is headquartered at Bengaluru.

GIC Housing Finance Limited

GIC Housing Finance Limited is a subsidiary of General Insurance Corporation of India. It was established in December 1989 with the name of GIC Grih Vitta Ltd. The housing finance Company is located in 27 cities spread across India. The company was established with an objective of increasing housing activities in India. GIC Housing Finance Limited is headquartered at Mumbai.

Dewan Housing Finance Corporation Limited (DHFL)

Dewan Housing Finance Corporation Limited DHFL, was established in April 1984 with a view to help realize home ownership aspirations of millions of Indians. DHFL is headquartered at Mumbai. DHFL is one of the top 50 biggest financial companies in India. DHFL has 209 branches and 113 service centers spread across India.

PNB Housing Finance Limited (PNBHFL)       

PNB Housing Finance Limited (PNBHFL) was established in 1988 and is headquartered at New Delhi. PNBHFL is promoted by Punjab National Bank, PNB. PNBHFL has 84 branches and 36 outreach offices spread across the country. PNBHFL became a public company in November 2016.    

IDBI Home Finance Limited (IHFL)

IDBI Home Finance Limited IHFL, is one of the oldest players in the housing finance sector in India. IHFL is headquartered at Mumbai. IDBI Home Finance Limited was established with an aim of providing home loan solutions that are designed to offer convenience and make the journey to your own house a pleasant one.

ICICI Home Finance Company Limited

ICICI Home Finance Company Limited is promoted by the ICICI group. They are one of the leaders in mortgage finance and the realty space. ICICI Home Finance Company Limited was established with an aim ‘to make the dream of owning a new home come true, for millions of Indians’. The company is headquartered at Mumbai.

LIC Housing Finance Limited

LIC Housing Finance Limited was established in 1989. It is promoted by Life Insurance Corporation of India. LICHFL is headquartered at Mumbai. LIC has 9 regional offices, 21 back offices and 240 marketing units spread across India. LICHFL was established with an objective of offering long term housing loans to individuals.

Housing Urban Development Corporation (HUDCO)

Housing Urban Development Corporation HUDCO, is a fully government owned corporation that offers housing finance. It was set up in April 1970 with a view of financing houses and improving urban infrastructure.

Housing Development Finance Corporation Limited (HDFC)

Housing Development Finance Corporation Limited HDFC, is a major housing finance provider in India. HDFC has its roots in banking, life insurance and general insurance, asset management, education loans and so on. HDFC was established in 1977 and has so far helped 6.3 million individuals own a house. HDFC is headquartered at Mumbai.

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