What risk does DHFL home loan buyers has based on current DHFL market conditions?
DHFL stands for Dewan Housing Finance Corporation. It is a housing finance company which extends loans to home buyers. Being a housing finance company, it has a special emphasis on affordable housing.
Answer and Explanation:
A home loan is a loan taken by an individual to finance the buying of a home. The home loan often comes with a longer period or a longer tenor compared to other loans.
Based on the current market conditions. home loan takers from DHFL may face a risk whereby the approved credit may not be disbursed as currently the company is facing a liquidity and solvency problem. With the loan not being disbursed, a home loan buyer may face further risk of having to refinance to buy a house.
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Learn more about this topic:
from Finance 305: Risk ManagementChapter 3 / Lesson 3