The growth of realty sector in India is mainly due to the reason of availability of land, abundant job opportunities and easy finance options. The easy availability of finance option is due to the reason of easy availability of the home loans, i.e. offered by various banks, housing finance companies and financial institutions. The hike in salary has increased the purchasing power of the people. The person avails a home loan to own their home or for investment purpose. The easy availability of the home loan and increase in income, increase the demand of the realty sector, with this the builders are also get motivated to build or construct more flats and apartments.

 

The growth of the realty sector is the most significant factor in the growth of the home loan market. All banks and financial institutions are ready to meet the requirements of the borrowers. They provide custom made solutions according to the customer profile and act as a complete package for the home loan borrower. The home loan interest rates are also low and even people can also afford these interest rates.

 

There are different types of home loans that one can avail, such as for the purchase of the property, for construction of the house, for home improvement, for repairing the home, for renovation of the house, for increasing home equity, etc. The person can avail loan for any kind of property, i.e. residential or commercial. All profile people, i.e. salaried individual, self employed person or professionals and even NRI can avail home loan. The documentation is different for a different set of people. One can take information regarding home loan through internet and can even calculate his monthly EMI through EMI calculator, as most of the banks provide this facility on their websites.

 

The home equity loan is a new product that is offered by various banks. In this loan, the person can again mortgage his property, i.e. already mortgaged to any lender for availing loan. The person can use this loan for marriage purpose, medical emergencies, higher education, purchasing of any consumer durable goods, to pay off debts, to invest in realty sector etc. Usually banks give 65% of the cost of the land/property/house.

 

The returns on investment in the real estate are far better than the returns in the stock market. All these factors have grown the demand of realty sector, and in turn, it has grown the demand of home loan.