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EVOLUTION OF HOUSING FINANCE
In 1970 HUDCO established to finance housing and infrastructure
Emergence of HDFC in 1977 as a first housing finance co. in the private sector in India
NHB was established in 1988 under NHB ACT in 1987 as an apex bank
PROFILE OF NHB
NHB also raises resources for the housing sector towards increasing new housing stock and provides refinance to a large set of retail lending institutions.
These include scheduled commercial banks, scheduled state cooperative banks, scheduled urban cooperative banks.
Why Housing Finance is important?
Housing markets have significant forward linkages with financial market.
It is routinely monitored as an important leading indicator of overall macroeconomic activity.
This sector has a tremendous development impact in terms of providing Social stability & Economic development.
What is home loan?
The Home loan is a loan taken by a borrower from the bank issued against the property/ Security intended to be bought on the part by the borrower giving a conditional ownership over the property.
TYPES OF LOANS
Home purchase loans
Home improvement loans
Home construction loans
Land purchase loans
Stamp duty loans
NRI home loans
Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms.
The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.