Though the market in US is full of many fresh home loan offers, HDFC home loan is one of the well-known services that enables many people to build or purchase their own homes regardless of their status in the society.
Even though in an economic downturn, home loan in the country is becoming a popular trend for many individuals. In fact, its biggest loaner, the State Bank has started this innovative home loan program more than a year ago. This is offered with an 8% interest rate. Because of the HDFC home loan system, it has caught the interest of the masses and brings the dormant loan market back to life.
SBI’s idea did not worked out as expected in the loan market. However, this didn’t hinder other banking firms to think of something on the similar lines of their own. This is when the HDFC home loan is considered as one of the most-preferred services in the loan market.
The bank started a unique dual rate loan service that was junked against SBI’s plan. The idea caught the attention of first time home buyer loans on two bases. First, the interest rate and the other is the dual-rate feature. The earlier part was an eye-catcher from the beginning. However, that truly started a new trend in the home loan market later, which convinced borrowers to enjoy the advantages of both fixed and floating interest rate scheme. With HDFC home loan system, the home loan applicant will have to pay at a fixed rate until March, 2012 and afterwards, the interest mode will automatically change to floating account.
HDFC home loan being under criticism by the HDFC Bank
In the meantime, SBI got criticism from every quarter of the industry, including that from the HDFC Bank. They said that such business stunts may perform miracles to bank in short run, but in the end, there are risks of defaults as well as bad debts that can hurt any loaning organization. However, the new HDFC home loan plan started after the organization was certain from liquidity side.
The organization seems to tighten their protocols as well to examine an applicant’s home loan eligibility. This contains no surprise since the bank had already considered the possible lasting HDFC home loan drawbacks that could occur. Another factor that supports this risk was the operational efficiency and a reliable EMI calculator for home loan to prevent.
HDFC home loan benefits and affordable
For the meantime, it is essential for potential borrowers to know more about the HDFC home loan system to avoid home loans for bad credit. Loan applicants will be charged with fixed interest rate regardless of its amount. However, things will vary once it changes to floating interest rate. Furthermore, Non-Resident as well as PIOs can also apply for in this program. What’s more is that it is being recognized as a concept that’s caused by consistent outstanding performance.
In conclusion, what this conflict between the public and private sector banking companies has done a big favor to their clients who were thinking of purchasing a property or a plot of their own. It also benefits the real estate sector as well and thus, it can expect to give back courtesy, affordable home loans like HDFC home loan.