The significant aspect of mortgage banking in India has been the initiation and attraction of investments from the private sector in order to carry on the process of social up gradation. The concept of mortgage banking is comparatively novel in India but has been able to grab the attention of the Indian citizens.
Facts about Mortgage Banking:
The public sector has been able to grab only 25 % of the share of investment made towards housing finance. The importance of commercial banks have been grown immensely now a days, on account of its increased participation in the direct housing finance sector.The percentage of participation in the direct housing finance sector has jumped from approximately 27 % in the financial year 2000 to nearly 57 % in the financial year 2003. Mortgage banking is presently being done by a large number of cooperative banks, private companies dealing with housing finance, non-banking financial companies and so on. The companies providing housing finance have gained immensely from the mortgage banking sector.
Foreign Banks in Mortgage Banking:
The phenomenon of economic liberalization and globalization have aided the foreign banks to enter the banking sector in India and presently various foreign banks have started their mortgage finance segments in India. The most prominent banks dealing with mortgage banking in India are:- Standard Chartered Bank
- The Hong Kong and Shanghai Banking Corporation
- ABN Amro Bank
Indian Banks Mortgage Banking:
According to the recent survey the commercial banks are going to further push back the other financial institutions in the race for grabbing more housing finance investments. The prominent commercial banks dealing with mortgage banking in India includes:- The Industrial Credit and Investment Corporation of India (ICICI) Bank
- Housing Development Finance Corporation (HDFC)
- Life Insurance Corporation (LIC) Housing Finance Limited
- State Bank of India (SBI)
Latest developments in Mortgage banking:
The main cause behind the rise in investments in housing finance, that has grown rapidly at a compound rate of growth of 78 % per annum from the previous figure of 45.6 %, is the increase in the quantity of loan takeovers. The major development in the mortgage banking sector is the financing package of $ 200 million which is granted by the International Finance Corporation to Housing Development Finance Corporation. This loan has been granted to upgrade the financial sector in India like supplying funds to people who fall within the middle class income segment of India.Kinds of Mortgage Banking:
Mortgage Banking can be of several kinds, though it is new in India, yet it is the best option to finance private projects the world over. To understand the mortgage banking schemes thorough research about the schemes is essential. The list of common mortgage banking kinds include:- Participation Mortgage
- Assumed Mortgage
- Bridge Loan
- Blanket loans
- Commercial Loan
- Non-Conforming Mortgage
- Fixed rate mortgage loan
- Reverse Mortgage
- Adjustable rate mortgage loans
- Budget Loan
- Seasoned Mortgage
- Blanket loans
- Equity Loan
- Jumbo Mortgages
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