Housing is one of the necessary human necessities. It is fundamental for the physical, psychological, social and economic well being of people. Shelter is one of the most basic needs of the people. All over the world the having the house is major problem and continuous efforts have been made to meet the ever increasing needs of each generation, while the problem of providing housing is highly critical in the developing countries. Most of the advanced countries also face this problem in varying degrees and dimensions.
Almost all governments, it may be developed, developing or underdeveloped country their object is every citizen of their country should have a one decent house in a suitable living environment. Housing as a form of reproducible wealth and is a asset of the people and their country. Construction of houses in India has been one of the most important problem, as a result of high growth of population. It has very difficult to fill the gap between supply and demand of houses. Housing is a important factor for development in both economic and welfare terms. It is not only a good consumption but also a productive investment. So for that, they need financial supports for building of their own house.
Solving the housing problems in India, the Government and Private financial institutions are started their business to give financial assistances to people. The National Housing Bank" has started its business to give assistance and provide financial support to their people.
The "DEWAN HOUSING FINANCE CORPORATION LTD", popularly known has DHFL has commenced its business to provide financial assistant and support to their customers. The DHFL is providing loan for all the people. This company's main products are Home loan, Home Extension loan, Home Improvement loan, leased Rental finance, Mortgage loan etc. The DHFL's Chandigarh branch is providing loan for all salaried persons, self employed persons, business people, agriculturists, fishermen's and all types of people who want loan to build their own house in all over Chandigarh.
Home loans
It is essential to have a place, which you can describe home. Home is where your collection of laughter, life, love and joy - all of these and more, reside together. Owning a home is as much a dream as it is a requirement after all, it is a enduring roof for you and your family. Buying a home is a very key decision and involves huge financial planning and commitment. One key feature of this planning is opting for a home loan. A housing loan acts as an important catalyst in achieving t his need and it is therefore very essential to choose the right housing loan provider, which can make this journey calm.
Fixed deposit loans
Fixed deposits are investment instruments offered by banks and non-banking financial companies, where you can deposit money for a higher rate of interest than savings accounts. You can deposit a lump sum of money in fixed deposits for a specific period, ranging from 7 days to 10 years. Once the money is invested with a reliable financier, it starts earning an interest based on the duration of the deposit. Usually, the defining criteria for FD is that the money cannot be withdrawn before maturity, but you may withdraw them after paying a penalty
ADVANTAGES OF HOME LOAN
The benefits that help people to have their dream home are:
Attractive interest rates - The various banks offers attractive interest rate to boost and help their customers. Many banks provide loans on fixed or floating rates or both to facilitate consumers as per their need.
Tax Shield - The Income Tax Act offers incentive to be a focus for people to invest in housing property. Section 24 of the Income Tax Act makes one eligible for inference on interest paid on a housing loan. The interest is allowed as a inference on an accrual basis, i.e., on unpaid basis, even if it is not actually paid in cash throughout the year.
Help in owning a home -The home availed by a person with the help of banks, because they provide technical and financial assistance to customers for owning their dream home.
Door step services -These door to step services are provided from enquiry stage to the final disbursement takes place such services are beneficial for customers in their present busy life.
Loan period -There are many financial institutions which provide maximum loan tenure based on the loan amount and credibility of customers. This gives relief to the customers in the repayment of the loan amount.
DISADVANTAGES OF HOME LOAN
The hurdles for people in their dream home are:
Delays in processing - Many times, there are huge delays in processing of providing home loans because various formulation to be fulfilled in this process. Due to these delays customers feel mentally as well as financially weak.
Fluctuating interest rates - Some financial institutions give home loans at floating rates, which fluctuate at different interval due some reasons. These changes sometimes, may lead to increase in interest rates which will increase the cost of home loans to the customers.
High cost - Some financial institutions charge high processing cost for home loan’s sanctioning. They are forced to pay huge charges at various stages to fulfill the requirement. The people who are not able to pay these charges could not avail the reimbursement home loan schemes.
Advantage of fixed deposit
There are a number of advantages of fixed deposit investments, some of which have been given below:
- They are the safest investment instruments, and offer greater stability
- Returns on fixed deposits are assured, and there is no risk of loss of principal
- You can opt for periodic interest payouts, to help you manage your monthly expenses
- There is no effect of market fluctuations on your fixed deposits, which ensures greater safety of your investment capital
- You can benefit from higher interest rates offered by company fixed deposits
- Some financiers also offer greater returns for senior citizens
