The building and loan association often indicates any individual, corporation, partnership, firm, entity, trustee, association, or any such combination, within the regulation of specific laws, including savings or loan associations, and are mainly created for dealing with aspects like home loans.
Building and loan associations were financial institutions that were held mutually and enabled easier access to home loans for borrowers, right from the 1830s to the 1930s. They saw participants pooling together their financial reserves, driven by a participative spirit in regional building and loan associations. This led to them becoming eligible to take mortgages for homes and get dividends at the same time. These associations started becoming savings and loans institutions after the 1930s which were federal agencies. These entities also came under Government regulations post the Great Depression.
The building and loan association is a state-supervised financial entity which takes customers deposits and subscriptions for investing in residential mortgage loans for members. The purpose of such associations is an increase in home or property ownership in any particular area/zone.
