• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Will give clear information on consequences of borrowing

Our Bureau

Kolkata, June 29 Imagine yourself sounding out a housing finance company with a view to borrow a large sum for that dream flat your broker showed you. Imagine also a certain helplessness, for you don’t really know the implications of your action. Fret not, there is help in the shape of the friendly neighbourhood Certified Independent Mortgage Counsellor.

Such a certified person is part of a plan drafted by National Housing Bank, which is examining the concept of having accredited personnel operate in the market to assist loan seekers. This, NHB says, will be done in association with the Indian Banks Association. NHB, according to Mr S. Sridhar, CMD, intends to provide clear information on the consequences of borrowing from housing finance companies. A borrower who wishes to consult a certified counsellor will need to pay a fee, one that will be linked to the size of the deal. A cap on the fee will also be set.

“This will not be a free service. The counsellor, who will be accredited by us, will keep in mind the interests of the borrower. IBA will work out the nitty-gritty,” he said, while referring to the confusion that has been seen in recent times in the context of changing interest rates. In some cases, complaints have come from borrowers who have floating-rate loans –— many of them have found that rates applicable to them have increased markedly.

NHB is also trying to build a consensus among housing finance institutions and banks on standards.

The idea is to set up a common platform – with a view to share information and develop collective approaches with regard to industry-wide matters.

NHB, Mr Sridhar observed, has mooted the formation of an ‘Indian Mortgage Lenders Forum’. This, it is felt, will help professionalise systems of lending in the growing market for real estate.

At another level, NHB has undertaken a study –— initiated by United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) –— of housing finance systems in 10 Asian countries. UNESCAP is the regional development arm of the United Nations. The study is a first for NHB.

More Stories on : Housing Finance | Mortgage | Financial Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HDFC Bank share allotment

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line