Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Mortgages » Article

Mortgage Not To Be Dreaded

By Nathen Jones

Half a century ago , the word loan was dreaded . It meant selling yourself to the lender. For rural –folks it almost amounted to degradation at the hands of the village mahajan and till the time it was repaid it hung like an albatross round the neck. It's a different scenario today, with financial institutions chasing loan seekers.

The going has never been so good for the one's who have vowed to live their lives on loan. With government regulations and legislation, offering loans is no risky business and recovery has been made easy with collateral securities and guarantees.

Procuring loan against property is easier than baking pizzas at home. The easy availability of loans has led to the growth of home loan industry at 30 to 35 %. The total loan disbursement was 75000 crores last financial year up from 57000 in 2004-5, And the pace is expected to be maintained this year too. The National Housing Bank (NHB) aims to catalyse Rs. 75000 institutional housing credits by 2009.

Banks provide loan against mortgage of property on an attractive rate of interest i.e. mortgage loans. Businessmen, self employed professionals, salaried customers are all eligible to apply for the loan like equity loans, mortgage loans, etc. It enables the borrower to apply for loan against a fixed asset.

The maximum amount of loan depends on a number of factors, like customer's profile, his financial standing and repayment capacity, tenure of the loan. The repayment tenure increases or decreases with the amount of loan. Repayment is done through Equated Monthly Installments or EMI. Interest can be paid either on fixed or floating basis like adjustable rate mortgages. Banks charge prime lending rate as their interest. Interest rate can be discounted for existing clients or in special cases according to the policies of the bank.

The Mortgage financing industry was estimated approximately at US $ 18 billion in India. The mortgage industry is undergoing a change as the market is dominated by banks in the direct housing finance sector. Though the housing finance industry in India is growing for the past few years still financing through the organized sector continues to account only for 25% of the total housing investment in India.

The NHB however is trying to rationalize mortgage of finance .Rural housing according to NHB would constitute 60 % of the Banks loan portfolio. The Bank also plans to launch a reverse mortgage scheme for senior citizens. In fact the draft concept has been presented to Reserve Bank of India. And senior citizens can access this scheme within the next 3 months.

About the Author
Nathen Jones, an expert in mortgage loans is an associate editor for The website is an online portal for providing services related to mortgage loans, equity loans and loan calculators. Send your feedback and views at

Article Source:
If you wish to add the above article to your website or newsletters then please include the "Article Source:" as shown above and make it hyperlinked.

  Some other articles by Nathen Jones
Adjustable Rate Mortgages
An adjustable rate mortgage, variable rate mortgage or floating rate mortgage is a mortgage loan where the interest rate on the note is adjusted from time to time based on an index. This is done ...

Home equity loan: a smart financial tool
A home equity loan is a loan secured by a person's home. In other words, your home equity is the difference between what you owe ...

Let's take a home equity loan
The necessity to improve one's life standard and to fulfill his ongoing demands is what the life of a human is! From time ...

  Recent Articles
Should I Refinance My Adjustable Rate Mortgage?
by RJ Baxter

The 'New Congress' Fiddles Away Valuable Time… As The 275,000 Insurable Limit For Home Equity Conversion Mortgages (Reverse Mortgages)
by Dale Rogers

The UK Consumer's Guide to Shopping for Mortgages Online
by Mary Simone

Online remortgage quotes Are Available within Least Time
by George Cummings

by Ismael D. Tabije

Low Mortgage Rates
by Kuntal Mehta

Interest Only and Second mortgage rates
by Kuntal Mehta

Adjustable Rate Mortgages
by Nathen Jones

Fast-tracking to Mortgage-free
by The House Team

The Mark Is Selected…The Fix Is In…Sting Underway
by Dale Rogers

Tips to find Bad Credit Mortgage Refinance Loan.
by Gerald Bouthner

Second Mortgage loans - Is It Better Second Time Around ?
by Lee Van

Find the best mortgage deal in UK
by reethi rai

Understanding Remortgages
by reethi rai

Purchasing property: financial and legal aspects come before offers and negotiations
by Martin McAllister

Can't connect to database