Thanks to economic liberalization and ensuing policy changes, the housing finance industry has undergone a paradigm shift over the last decade. Gone are the days, when taking a loan meant entering a labyrinth of documentation and dealing with condescending bank officials. Today, in the backdrop of intense competition, housing finance companies are falling over each other to woo potential customers. Housing finance being one of the safest lending avenues has also contributed to the emergence of new players in the market.

The unique place that a house has in an individual's life plus the high proportion of the customer's own money in the house provides considerable comfort for home loan companies. In the present times, people are increasingly taking to credit, because of rising annual incomes and the series of tax sops that have become an annual ritual in the Union Budget. With the constant rise in demand for residential and commercial complexes, the growth of the real estate sector in India has witnessed at an exponential rate over last five years.

Cut-throat competition among Indian housing finance companies has brought down the interest rates by a few notches. The vast difference in interest rates across-the-board has all but disappeared, and home loan companies are taking recourse to product innovation to stand out in the burgeoning home loan market. Today, apart from the resident Indians, even NRI's can apply for a home loan. An applicant applying for a loan can either opt for fixed or floating rates. The loan rates of companies today are in between 7.50% to 12 %, depending on the repayment years.