Dreaming of homes

A HOME is the dream of a lifetime for many. And for a significant section, it is much more than a necessity. It is a statement of sorts.

And for those who find it hard to set up a roof over their heads all on their own, banks have been extending a helping hand.

Incidentally, without loans a good chunk of the population find it difficult to buy or build their dream houses.

And these days, banks go to some lengths to woo customers and gone are the days when housing loans were hard to come by. In fact, banks have even started conducting housing loan melas.

Take the case of the "housing loan festival" conducted by the State Bank of India's MG Road branch in the city.

The idea of the festival was to sanction new housing loans and to take over housing loans from other financial institutions availed by people at higher rates of interest.

The festival was an instant hit among the public, says Mr. O. V. Ahmed Foad, chief manager of the M.G. Road branch of SBI.

The bank had about 90 applications on day one. That was on November 22. And over the past week, it has attracted considerable attention.

Interestingly, such was the situation despite the general economic dullness facing the country. One would not expect the public to go for a loan to set up a home in times of hardship.

"On the contrary, the response was overwhelming. The logic is simple. You remit the amount that you pay as rent to the bank and at the end of, say 10 or 20 years, you have a home of your own." Nothing could be more direct. And appealing.

"Anyone over 21 years of age with a steady source of income can avail housing loan up to 85 per cent of the cost, to be repaid over a period of 20 years."

Even so, the competition is tough. With many players chasing customers and offering them loans, more and more choices are emerging.

And different incentives are offered as bait. When the State Bank of Travancore conducted a similar festival last September, the catch phrase was "quick decision making".

"This meant the local branches were given the power to take decisions on loans up to Rs. 6 lakhs. And for anything beyond that we asked for three days' time," says Mr. Mathewkutty, chief manager, M.G.Road branch of the bank.

"There was also an interface with architects. And we had about 60 to 70 enquiries on all days." This festival was for nine working days.

The name of the bank is immaterial. That is why people throng the maze of banking institutions to fulfill their dream. For, there is no better dream than the one of having a house of one's own.

By Anand Haridas

Send this article to Friends by E-Mail

Section  : Southern States
Previous : Madhuri backs an elephantine cause
Next     : Charting the middle path