The construction or purchase of a house is an expensive affair. Individuals looking to secure a real estate property for themselves need to be financially prepared to finance the massive expenses. But every individual looking to buy or build a house is not always equipped with adequate funds.
That is where the role of non-banking housing finance companies becomes prominent. These companies finance the clients in buying or building a house, either directly or indirectly. By providing housing loans, these housing finance companies work on removing homelessness from countries and contribute to creating housing colonies.
There are several financial advantages that the housing Fiance companies create. A few of them are:
• Housing finance companies create employment both directly and indirectly.
• Industries such as cement, brick manufacturing, sanitary products, and glass industries experience more demands with increased constructon work.
• These companies help in creating more housing complexes. This way, they assist in minimizing homelessness.
If an individual is looking for a housing loan from a housing finance company, they should ensure the company they choose is a licensed and certified one. They should also consult with a financial advisor before getting ahead with the process.
Housing finance companies are non-banking organizations whose primary business is to provide finance for the acquisition or construction of houses.
A non-banking organization must have specific qualifications to operate as a housing finance company. Some of them are:
ü The primary business of the company must be providing finance for housing. They can manage the financial business directly or indirectly.
ü The company must obtain a certificate of registration from the National Housing Bank.
ü The company must be able to meet the claims of its present and future depositors.
ü The company must have a strong capital structure.
The importance of housing finance companies in the real estate industry is immense. With their on-time and reliable financial services, these companies enable individuals to buy or build their dream home without waiting for an entire lifetime.
Builders and real estate developers can work on constructing commercial properties by taking loans from these non-governmental financial organizations. Owing to the availability of housing finances, there is an increase in the re-building of dilapidated houses and re-modelling of existing structures that require improvement.
Housing finance companies also contribute to the reduction of congestion in urban localities. They assist factories and industrial enterprises in creating townships by providing housing facilities to their employees.
