2014-15 HOME BUYERS Loan- IN 2014-15 HOME BUYERS MAY GET SOON 90% LOAN:

IN 2014-15 HOME BUYERS MAY GET SOON 90% LOAN

At present lenders offer maximum loan up to 80% of the property value. The National Housing 
Bank is considering proposal that seeks to allow lenders to give loan up to 90% of the property
value as home loan. 

The proposal is for above Rs.20 lakh loans that carry mortgage guarantee cover.Housing finance companies enter into a contract with mortgage guarantee companies at the time of loan origination.

Recently Dewan Housing Finance concluded the first ever mortgage guarantee backed securitisation deal for a pool of Rs.37.83 crore home loan coming from 288 loan accounts a person familiar with the matter .Each loan is below Rs.25 lakh falling in the category of Priority Sector Lending.

According to the Mr. Verma , Managing Director of National Housing Bank ,mortgage backed guarantee provides protection from possible defaults long term lending for housing loan up to 20-25 years.