Mortgage Management In Sri Lanka: The Easy Way

In May 2017, the BBC reported Sri Lanka as a country trapped in debt. Having a total debt of $64 billion, the report stated that 95% of all government revenue goes towards debt repayment.

Startling statistics such as this calls to question the stability of the island’s economy. With the economic performance of the country closely connected to how financial institutions function and how people make a living to support their daily expenses, how secure are investments and loans?

As individuals, we may desire a luxury lifestyle or that dream home we have always wanted. While loans come by as a suitable solution to make these dreams a reality, they are not always a compatible solution.

The formalities involved in qualifying for a loan is a barrier that prevents many people from making use of loans. With their busy lifestyles, people are always on the lookout for convenience when it comes to getting things done.

Home Loan Systems

Considering the growing demand from people wanting to invest in homes, financial institutions in Sri Lanka have come up with various home loan schemes. However, the loan systems available at present are not always what the borrower is seeking for.

Most home loan systems requiring a non-refundable processing fee with the home loan application creates a problem for first time borrowers as loan applications are not always approved. Moreover, the dilemma of having to choose between a fixed interest rate and a floating interest rate is yet another hassle that applicants face when it comes to applying for a loan.

Making sure that the applicant meets all the requirements of the financial institution in addition to considering repayment schemes and eligibility makes the process of obtaining a loan quite tedious. Therefore, due to the inconvenience that is tied with obtaining a loan, people tend to avoid them.

Home loan systems don’t always come by as a convenient solution to making dream homes a reality. Image courtesy:

The Dangers Of Loan Sharks

‘Poli mudalalees’, being individuals who lend money to others for an interest, are a common sight in many villages across Sri Lanka.  However, the growing number of unlicensed money lenders or loan sharks now impose a lot of threat. While seeking this option might seem convenient, it is not always the safest choice.

In comparison to obtaining a loan from a bank, which is a more stable option, taking a loan from loan sharks or ‘poli mudalalees’ impose risks as they don’t always offer flexible schemes. Moreover, these lenders flourish making use of mafia-like tactics to recover their money from borrowers.

Though financial institutions have curated different loan schemes, they are not always accessible to everyone, especially in the more rural areas of Sri Lanka. So,  many still lean towards the option of obtaining loans from unlicensed lenders, which in turn comes with a lot risk.

Loans And Documentation

As convenient as a loan can be towards accessing necessities such as housing, the process itself is tedious.

While requiring basic documents for legal and identification purposes is quite normal, certain financial institutions follow notoriously bureaucratic processes in terms of requiring documentation to qualify for a basic home loan.

With most financial institutions requiring  a credit history, collateral, and a guarantor, individuals opt to seek for other means that would give them easier access to finances. What financial institutions need to understand is that individuals are looking for a loan plan with a minimum fuss.

The documentation process of obtaining loans can be tedious making individuals discount the option of loans altogether. Image courtesy:

Secure And Hassle Free

To make home loans an option that is not just accessible to everyone but convenient enough to suit the busy lifestyle of many Sri Lankans, HNB has now created a home loan scheme that’s hassle free.

Making loans an accessible option, HNB offers a hassle free loan scheme. Image courtesy:

Making dream homes a reality, Shanthi Home Loans is now the go-to option  for a range of different services under this scheme. Guiding applicants throughout the process and assisting them with legal and other documentation, Shanthi Home Loans now offers the convenience that individuals are after.

With a two-day loan approval procedure, HNB is now ahead of the curve, developing a home loan scheme that is tailored to suit the busy lifestyles of many Sri Lankans.

Putting a full stop to all the hassle and insecurities that come with applying for a home loan, HNB has enhanced home loans, shaping it into something that is viable, secure, and best of all, simple.

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