Home Loans in Chennai, Home Finance chennai

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<h1>Home Loans in Chennai, Home Finance chennai</h1><strong> Author: <a href='http://www.articleseen.com/profile_mani.aspx'>mani</a></strong><br /><p>Home Plan India is the retail division of AFAZ ASSOCIATES which is aimed at revolutionising the business platform and empowering the Individual Customer. AFAZ Associates is a advisory firm having its Head office at Chennai, India. Though we offer wide range of Financial advisory services, we are more focused on the retail customers and our products / services are designed to make retail distribution of products and financial products as seamless as possible. The firm founded by SBS.AZEEMUDDIN is run by a team of experienced professionals with impeccable track record, strong domain expertise and strong relationships. By leveraging the relationships built over years of association, we bring the combined strength of in-depth knowledge and vast experience to the benefit of the end beneficiaries. The Organisation is currently involved in two major projects namely SMS based Shopping (purchasing) platform under the brand name pin2planet and a novel Home Loan scheme which is a packaged product bundling Loan, Investment and Insurance in to a single retail Home Loan product. Home Loan : We wish to distinguish our Home Loan product from the standard plain Home Loan product which is more of a Loan product. Ours is a combination of Loan, Investment and Insurance aimed at reducing the monthly EMI burden without compromising the bottom line and revenue earnings of the Home Finance Company. The idea is to bring the power of compounding interest on a portion of the Loan amount which is set aside as Investment in the form of deposit including a percentage of the actual loan amount. The interest earned on compounding basis effectively reduces the overall EMI but at the same time it works to the mutual benefit of all the stake holders including the Home Loan Company. How does the scheme work for mutual benefit of all? In view of the regulatory compliances which are not currently conducive to implementation of the novel scheme conceptualised by our CEO way back in 2006 and also because of the various stages at which the current discussions are as regards the regulators and home finance companies and banks, we are currently not publishing the detailed note and contents of the copy righted home plan finance option. The working of the Home Plan is described briefly hereunder: There are three components. First is the principal home loan amount, Second a margin amount in addition to the home loan amount to be contributed by the Home Loan customer and an additional loan amount which will be sanctioned but retained as fixed deposit by the banker sanctioning the loan amount. The system basically works by setting aside the margin money ( we feel a nominal 6.25% of the original loan amount will do ) in a fixed deposit. This amount when held in a fixed deposit for a period of 20 years almost matures to 4 times the amount invested at the current interest rates of 8.5% prevailing in the market. The additional Loan sanctioned which is 25% of the principal loan amount is also deposited in a long term 20 year fixed deposit and this amount also matures to a minimum of 4 times the amount invested which is almost equal to the principal loan amount sanctioned. This amount basically works as security ( linked to the maturing amount) and can also be structured to fund the insurance costs designed to protect the interest of the financier against act of god perils and fire accidents and also the death (accidental or natural) of the home loan customer. While the bank will continue to calculate and collect EMI on 125% of the principal loan amount but a cost comparatively cheaper to the standard rates in view of the numerous safety aspects involved. At the end of the plan period, the Home Loan Customer becomes eligible to the matured fixed deposit amounts while still having closed the loan. As far as the financier is concerned he has totally hedged the risk of the loan becoming a NPA and also his earning is not compromised.</p><strong>About the Author:</strong><br /><a rel="nofollow" href="http://www.homeplan.in/">Financial advisory services </a><p> Article Source: <a href='http://www.articleseen.com/Article_Home-Loans-in-Chennai-Home-Finance-chennai_111332.aspx'> http://www.articleseen.com/Article_Home Loans in Chennai, Home Finance chennai_111332.aspx</a></p>

Article Source : http://www.articleseen.com/Article_Home Loans in Chennai, Home Finance chennai_111332.aspx

Keywords : Home loans, Home finance, Banking investors, housing finance,

Category : Finance : Loans