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Abstract
In developing countries like India, the house is a dream of most of the people living in a villages as well as slum in urban areas and middle class people living in houses on rental basis. For these aspirants of houses, housing loan is golden opportunity to bring their dreams into reality. Every citizen of the country dreams of having his own house. Home is a basic need of a human being; it is an important facet of economic development. The dream home is not very far away with home loan, which will fulfil the dream into reality. The demand for home loans has increased manifold in the last decade. There are number of housing finance companies and banks offering cheap home loans at a low interest rate. The home loan schemes offered by both public and private sector banks are very competitive.
Shelter is a basic human need and productive investment. Home loan means a sum of money borrowed from a financial Institution or Bank to purchase a house. Home loan consists of an adjustable or fixed rate payment terms. As most of the people don’t have the cash funds to pay for a home, outright they can apply for a home loan which will pay the upfront costs for the home also which will have to be paid back monthly over a specified period of time. Without home loans most of the people could not afford to buy a home. According to National Association of Home Builders, the housing industry as a whole contributes about 17% to 18% of the nation’s GDP. The most common purpose of a home loan is to provide funds to a buyer who needs to purchase a home. Home Equity loans allow a home owner to borrow against the difference between the home’s value and the current loan balance.