A Housing Finance Company is a non-banking financial company that is completely engaged in providing finances of acquisitions or the construction of houses. Certainly, these are responsible for the development of plots for the construction of new houses. Below you will find a list of the top 10 housing finance companies in India 2020-2021.
Top 10 Housing Finance Companies In India 2020
Taking home loans has become a lot easier now through the e-loans provided by several Housing Finance Companies in India. These companies act as a bridge that helps the people build up their dream homes with the aid of various banks offering the best home loans.
Importance of housing finance company in India
- Among all the financial services, housing finances has gained a lot of prominences because it offers employment both directly and indirectly.
- Due to house construction industries, including cement, brick manufacturing, electrical fittings, and glass industries, experience more demand.
- Rural housing also helps in preventing the migration of pastoral labors to urban areas and also develops the rural areas.
- Furthermore, housing finance helps create more homes that build more infrastructure facilities like roads, drinking water facilities, etc.
How is housing finance offered?
Both commercial and cooperative banks offer housing finance. When the banks provide housing finance, both the lender and borrower need to sign an agreement under the transfer of property act, under which the house is mortgaged to the creditors. Until the loan is repaid, the borrower is the mortgagor, and he cannot sell the house to any third party.
The mortgage is lifted when the loan is repaid, and the owner receives the ownership of the house. Then the owner gets the right to sell the house.
Tax Benefits Of A Housing Finance Company In India
To boost housing finance and encourage more construction in India, the Income-tax act provides concession to assesses under which one can avail INR 30,000. The tax relief can be satisfied if the housing loan was available for renovation housework. If the loan is for construction work, then every year, INR 2,00,000 can be written off.
Therefore, here are the top 10 Housing Finance Companies in India that provide you a convenient and hassle-free process in less time:
1. Can Fin Homes limited
The CFHL provides housing loans to individuals, builders or developers, and the loan against the properties. The company accepts both the fixed deposit and accumulated deposits. With the market value of 0.31 billion dollars, the company has 491 employees in total. Above all, It is one of the best-known house financing company that has completed 27 years of operation in the home finance field.
2. Dewan Housing Finance Corporation Limited
The DHFL home loans are the most known home loans among the people of India. This housing finance company offers housing finance plans to low and lower-middle-income groups in specific Tier II, III, and IV cities. Moreover, this company also renders you non-housing loans against LAP properties, SME, and developer loans in India. DHFL has an extensive network of around 74 branches, 78 service centers along with 35 camps spread all around the nation.
3. PNB Housing Finance Limited
Being 28 years old public sector housing finance company in India, PNB Housing Finance Limited is a renowned finance company having its headquarter at Delhi with several branches in different cities. The finance company provides home loans, home extension loans, home construction loans, home improvement loans, and lease rental discounting. Moreover, the company accepts public deposits as well.
4. IDBI Home Finance Limited
This Housing Finance Company works under the scheme of government in India. This company was established to offer credit and other financial facilities to develop the Indian Industry. It provides its customers with individual home loans, home extension loans, home improvement loans, home loans for NRIs, loan against home and plot loans, etc. The company offers flexible loan re-payment options. This housing finance company is worldwide famous, with around 3350 ATMs, 1853 branches, and an overseas branch in Dubai with 1328 centers.
5. ICICI Home Finance Company Limited
The ICICI bank is a multinational bank that offers a range of banking products along with financial services. They aim at retailing customers with several services in specialized subsidiaries in the investment banking areas, non-life insurance, asset management, and venture capital. On the other hand, this bank has a great network of around 4450 branches with 14,404 ATMs in India and 19 countries, including India.
6. LIC Housing Finance Limited
To clarify, the main motive of LIC Housing Finance Limited is to offer long term finance plans to individuals for the house or flat construction or the purchase of a new home for residential purposes. It provides the Udtapaisa Mutual Fund in two sectors- Mortgage loans and Home loans. Both loans at a good interest rate. The company also provides long term finance to the persons engaged in the business of construction.
7. State Bank of India Home Finance
Firstly, the company is one of the best home loan providing company in India. Secondly, it offers a wide array of best home policies and schemes with complete reliability and security. In addition to this, the loans are easy to achieve and convenient to pay. SBI, one of the best housing finance companies in India, also offers you customized home loan products. The different loan types are:
- Construction/purchase of a new house/flat,
- Purchase of an existing house/flat,
- Purchasing a land plot for house construction,
- The repair/extension/renovation/alteration of an existing flat/house
8. Birla Global Finance Limited
It is one of the reputed non-banking financial companies. Moreover, the company has maintained an expressive presence throughout the verticals of life insurance, wealth management, and wealth distribution. It aims to provide integrated financial services.
9. DSP Merrill Lynch Limited
This finance company is one of the oldest Housing Finance Companies in India. It provides research, equity trades, equity capital markets, and electronic trading services. The company focuses on research and investing information.
10. L&T Finance Limited
The company provides home loans, construction loans, and personal loans. It is a non-banking financial company that provides a wide range of financial products and services. LNT Finance Limited supports Retail and Midmarket Finance, Wholesale finance, and Investment Management.
Why Should You Take A Home Loan From Housing Finance Company?
If you are still worried about taking a home loan from a housing finance company, then the below-listed benefits will help you make a good decision.
- Easy Loan Approval – Housing finance companies easily offer you home loans. But they do not put much pressure on your credit score and the cost of funds. However, housing finance companies in India offer you home loans at a higher interest rate even if you have a low credit score.
- High Loan Amount – Banks do not finance registration charges and stamp duty under a home loan. Likewise, Banks only permit you to apply for loans on the property cost. However, the different housing finance companies include registration cost and stamp duty, both while offering a home loan. As a result, this procedure helps in increasing the home loan amount.
- Fast Loan Process – Housing Finance Companies in India have a quick home loan process plan. The process of documents is simple in housing finance companies. Also, such companies allow you to get home loans with different periods, processing fees, and interest rates.
Thus the national housing bank regulates the housing finance company. Any non- banking company can offer housing finance provided they fulfill the basic requirements mentioned in the companies act 1956. It plays a crucial role today.
Some of the basic requirements include having a primary business of providing housing finance either directly or indirectly. The company should have a certificate of registration from the National housing bank. Under the national housing bank act 1987, it is a punishable offense* to conduct business without the certification.
Furthermore, on disclosure of any suspicious activity, then the national housing bank can demand the winding up of such companies. The company must have a minimum net owned of Rs. 10 crores. Thus the main objective of housing finance is to promote a healthy, sound, and efficient housing system to cater to the needs of all segments of the country.
To sum up, choosing a housing finance company over a bank will be the best choice that you can make to get things done in the right direction. The above list will help you in identifying the best housing finance companies in India for you.