PRESENTATION ON

ANALYSIS OF HOME LOAN INDUSTRY AT INDIA INFOLINE LIMITED

BANASTHALI VIDYAPITH

PRESENTED TO: PRESENTED BY:MS. PRIYANKA VIJAY RIYA JAINASSISTANT PROFFESOR MBA III SEMFMS WISDOM ROLL NO: 12787BANASTHALI VIDYAPITH

COMPANY PROFILE

India Infoline Limited:• IIFL holdings limited is the apex holding company of the IIFL group, started

on October 18, 1995 as leading financial services group in India known as India Infoline Limited.

• IIFL offer services such as financing, wealth and asset management, broking, realty and property advisory services through its subsidiaries.

• India Infoline Housing Finance Limited is a company registered with the National Housing Bank (NHB) as a Housing Finance Company and is a 100% subsidiary company of IIFL Holdings Limited.

• It has 55 branches across India with 1000 plus employees.

• India Infoline Housing Finance Limited offers the home loan to customers with very attractive features.

INTRODUCTION TO HOME LOAN

• Home Loan is the sum of money borrowed from financial institutions or banks with the purpose of purchase of new house, or for extension of house.

• India Infoline Housing Finance Limited offers home loan for the purpose of:

1. Purchase of new home,2. Home extension or improvement loan,3. Swaraj home loan,4. NRI home loan, and5. Loan against property.

Features of India Infoline Housing Finance Home Loan• Quick & hassle-free loan,• Competitive interest rates starting from 9.55%,• Affordable Equated Monthly Instalments (EMIs),• Tenure up-to 30 years,• Legal and technical advice to help customers in making sound decisions,• A wide network of branches across India

PROCESS OF HOME LOAN

HOME LOAN ELIGIBILITY

ASSESSMENT

CINDITIONAL HOME LOAN SANCTION

SECURITY ASSESSMENT

HOME LOAN DISBURSEMENT

COMPARISSION OF HOME LOAN AT INDIA INFOLINE LIMITED AND INDIABULLS

India Infoline Limited• Loan Amount- 75% of cost of

property for loan above rs.75lakhs and 80% of cost of property for loan up-to rs.75 lakhs.

• Maximum Tenure- Up-to 30 years.

• Interest Rate- 9.55%-10.50% for loan up-to Rs.2 crore and 10.50%-11.50% for loan more than Rs.2 crore.

Indiabulls• Loan Amount- 90% of cost of

property for loan up-to rs.30lakhs and 80% of cost of property for loan above rs.30lakhs up-to rs.75 lakhs.

• Maximum Tenure- Up-to 30 years.

• Interest Rate- Floating for general borrowers- 9.20% and 9.15% for women borrowers, and fixed interest rate is 9.95% to 10.40%.

RESEARCH METHODOLOGY

OBJECTIVES OF STUDY: To study the customers perception about home loan, To know the ideas of customers about home loan products and services, Evaluation of the role of housing finance firm that is India Infoline Limited and the

Indiabulls in providing the home loan to customers, Evaluating the home loan portfolio of both the firms, and To know the factor that attract customers before applying home loan. To give suggestions regarding

RESEARCH DESIGN:The research design on the topic involve high level of research work as it has scope of exploratory and comparative to determine the customer satisfaction towards home loan schemes.

SOURCE OF DATA COLLECTION:

• Primary source of data collection- Questionnaire• Secondary source of data collection- Internet

DATA SAMPLING:

• Sample Size- 50 people • Sampling Technique- Questionnaire

USE OF STATSTICAL TOOL:The representation of data in this report is done with the help of pie charts, and tables.

LIMITATION OF STUDY:• The survey is carried out only in Gurgaon (Haryana).• The results are based only on people’s response which may vary.• Less knowledge to people regarding home loan.

DATA ANALYSIS1. Selection of bank:

Bank Respondent Percentage

ICICI 5 10

HDFC 8 16

IIFL 15 30

INDIABULLS 9 18

SBI 13 26

TOTAL 50 100

ICICI10% HDFC

16%

IIFL30%

INDIABULLS18%

SBI26%

Selection of Bank

Interpretation: From the above graph, 30% people taken loan from the IIFL home loan, while 26% from SBI, and 18%, 16%, 10% people taken loan from Indiabulls, HDFC and ICICI. We can say that 50% of market is covered by IIFL home loan.

2. Interest Rate:

Interpretation: From the above graph, 60% people go for fixed interest loan, while 40% people go for floating interest loan. So we can say that major group of people prefer fixed interest.

Type of Interest Respondents Percentage

Fixed Interest 30 60

Floating Interest 20 40

Total 50 100

Fixed Interest60%

Floating Interest40%

Types of Interest

3. Criteria considered while taking loan:

Interpretation: From the above table, we can interpret that highest mean is 6.6 against the loan tenure and the second highest is 5.1 for margin amount. Thus we can say that the first criteria that people look for before going for a loan is the tenure of loan.

Factors Mean

Faster Processing 3.2

Interest Rate 2.96

Brand Image of Bank 4.08

Margin Amount 5.1

Pay Back Period 4.48

Scheme 4.96

Loan Tenure 6.6

Loan Eligibility 4.7

Other 8.88

4. Satisfaction Level:

Interpretation: From the above graph, we can interpret that 40% people are highly satisfied with the home loan services of IIFL, while 38% people are average satisfactory, and 16% people are satisfied with services. So we can say that maximum number of people is highly satisfied with home loan services offered by IIFL.

Satisfactory Level

Respondent Percentage

Highly Satisfied

20 40

Satisfactory 8 16

Average Satisfactory

19 38

Dissatisfactory

3 6

Total 50 100

Highly Satisfied40%

Satisfactory16%

Average Satisfactory38%

Dissatisfactory6%

Satisfactory Level

5. Loan Amount:

Interpretation: From the above graph, we can interpret that maximum number of people that is 48% of the total people would like to go for loan amounting in a range of Rs.5 lakhs to Rs.10 lakhs, followed by the 42% of the total people who would like to go for loan amounting in a range of Rs.1 lakh to Rs.5 lakhs and only 4% of people like to go for loan amounting to more than 10 lakh rupees.

Loan Amount Respondent Percentage

Less than 1 lakh 3 6

1-5 lakh 21 42

5-10 lakh 24 48

More than 10 lakh 2 4

Total 50 100

Less than 1 lakh6%

1-5 lakh42%5-10 lakh

48%

More than 10 lakh4%

Loan Amount

6. Occupation:

Interpretation: From the above graph, we can interpret that maximum number of people that is 50% of the total people belong to the salaried group while 26% of the total population is self-employed, followed by the 16% of the total people are professionals like doctors etc. and only 8% of people belong to general group of occupation.

Occupation Respondent Percentage

Professional 8 16

Self-Employed 13 26

Salaried 25 50

Other 4 8

Total 50 100

Professional16%

Self-Employed26%

Salaried50%

Other8%

Occupation

FINDINGSFrom the survey done on 50 people in duration of 10 days, gives the following findings:• Most of the home loan market is covered by Home loan division of India

Infoline Limited and the second highest is SBI in this race.

• 60% of people are in favour of fixed interest rate rather than the floating interest rate for the Home loan offered by IIFL.

• The major criteria which people keep in mind before applying for loan is the maximum loan tenure followed by the margin amount.

• With the services provided by the home loan team of India Infoline Limited to the customers, we can say that 40% of total customers are very highly satisfied, whereas 38% of total customers are average satisfied, while 16% of total customers are satisfied with the services of IIFL.

• From the last question that is being asked in the survey was the minimum loan amount for which people apply for loan. The response from them was that 48% of people wanted to go for loan amount of 5lakh to 10 lakh, while the second highest was the people of loan amount between 1 lakh to 5 lakh.

• I also find that maximum number of people that is 50% of the total people belong to the salaried group while 26% of the total population is self-employed, followed by the 16% of the total people are professionals like doctors etc. and only 8% of people belong to general group of occupation.

SUGGESTIONS To increase the customer satisfaction, the IIFL housing finance should provide

specialized services such as proper guidance to customer regarding the processing of loans, especially to illiterate customers.

To satisfy their customers and for good dealings in future, IIFL housing finance should make prompt disbursement of loan amount to customers.

Although the interest rates on specific norms, yet customers seek less interest rate which can lower their cost of house. So IIFL housing finance should try to lower their interest rates.

IIFL housing finance provide loan according to the repaying capacity of the customer and his/her eligibility. Due to which, some customers are not able to get amount of loan needed by them. So, the IIFL housing finance should soften their norms regarding the loan amount.

Company should consider the present competition and should try to act according to the needs of customers.

CONCLUSIONThe Indian customer has come a long way from purchasing to fulfilling their needs of buying a house customers now grab everything that comes their way. In my study, I came to know that many people are interested to take home

loan from IIFL home loan to construct their homes. Even though the interest rate is high people are willing to take home loan

from IIFL Home loan.Finally the whole research was carried out in a systematic way to reach at exact results. The whole research and findings were based on the objectives. However, the study had some limitations also such as lack of time, lack of data, non-response, reluctant attitude and illiteracy of respondents, which posed problems in carrying out the research.