Simplified facts and practical information about home loans in a simple language while avoiding the technical jargon associated with it! I was confused with Finance in Home Loans and this Blog is an simple expression! I am a Healing Artist, and not attached with any Financial Commercial Institution and am not responsible for any financial links posted Take care and surf information before committing!
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13 August 2011
What is the meaning of Annual Report of the Home Loan Lending Institution Understanding Annual Reports of Financial Institutions
Every financial company or bank has to come up with an annual report with all the financial figures on paper. Though every financial business dealings may be done electronically it is still seen that the finance companies rely on the tried and tested documents, which is paper for making their annual reports.
If suddenly your bank closes down and if you are a bank holder you can very well understand the tension and stress of losing your amount totally or recovering this amount after some years.
There are government rules to be followed by all financial institutions regarding this matter. They are advised to sent notices to all bank account holders regarding their financial status. Here the importance of annual reports comes in. Just went through the annual report of GIC housing Finance and they have given detailed information regarding the total amount offered as home loans by the company in the financial year, their income generated by home loans and the rate of interest with which they offer home loans. It is understandable that with high property rates the lending market is still at a down side and according to the rules the company has to mention all this in their annual reports.
The loan lending company has to give facts and figures correctly according to government rules and regulations to be in the market of lending of home loans. The bank cannot mislead or give incorrect information regarding finance and income of the bank. Every share holder gets the annual report to go through the company status and come to an understanding of the financial status of the company.
Any borrower can go through the annual report of the financial status of the bank and then go in for a home loan from them. If the company has been in the home loan business for years then it is understood that they have a regular format and procedures for home loan approval and acceptance.