The ensuing weeks can bring some relief for the home loan borrowers. It is because, it is expected that the concept of mortgage guarantee may be rolled out in next few weeks.
It is a four-way joint venture and has been christened as India Mortgage Guarantee Company. National Housing Bank, US-based Genworth Financial, the Asian Development Bank and International Finance Corporation being the four partners.
Mortgage Guarantee will ensure proper availability of home loans as well as the softening of interest rates. On one hand, where the existing borrowers will be benefitted by lowering of interest rates while on the other, more people will be able to avail the dwelling loan facilities.On behalf of the borrower, the company provides credit guarantee to the lending company. It enables the borrower to reduce his equity for borrowing the loan.