Problems of housing finance borrowers in tirupati: A comparative study

Housing finance is a specialist economic activity of recent origin in India. It is in its infant stage of development and like any other newly emerging system, it also faces certain problems. The customer of today has also become aware about his needs and requirements of housing finance. The construction of house involves innumerable problems that the prospective house owner has to confront. The most significant among them is mobilizing funds required for house construction. The borrower has to seek both internal and external funds for this purpose. The most important source of getting external funds is through loans from HFIs. HDFC is more liberal in sanctioning and disbursing housing loans to its applicants than its counterpart LICHFL. Rigid rules and regulations, inadequate loan amount and security/surety are the three major problems irrespective of income of the borrowers. Non-consideration of future and other income inconvenienced the sample borrowers mostly in securing adequate housing loans from HFIs.