home loans of hdfc

7/25/2019 Home Loans of Hdfc

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ABSTRACT

Introduction: Purchasing the home of your dreams is not an easy task. Especiallywhen you plan to buy a home on loan. Home loans means that you buy a house on

installments. In simpler terms when you want to own a home and cannot afford to pay

the amount in lump sum, you can pay it in monthly installments with an interest rate.

There are number of companies offer cheap loans at a low interest rate you can avail

loan against existing house for renovation or expansion etc. The demand for home

loans will not sag much. The reason is a substantial rise in the income generating

capability of Indian youth. !o this particular section will keep the housing loan

demand high and increased lending rates can only shelve their plans for some time.

The main ob"ective of any bank is to ac#uire larger market share, or higher

percentage of turnover in the industry, which can only possible by lending money at

good interest rates. This could be only achieved by building a lower percentage of

lending solutions to customers.

$ny bank can survive through the stiff competition of the market if it has

better loan offerings, such as home loans. Today many banks and financial institutionsin the market are providing solutions, such as home loans, and they adopt many

strategies to maintain and improve and grab the ma"ority of the market share.

The importance of the home loans in the economy can be illustrated such that, with

a plethora of auto loan opportunities available in India these days, it is now possible

one to buy a dream home within a matter of days. %o need to save up money for

making complete down payment at the time of buying. &ust gather enough amounts

for the initial payment and pay the rest in easy installments, by taking up a loan.

The best part about home financing is that, apart from the new homes, loans are

available for old homes as well. !o people these days are rushing in buying homes.

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CHAPTER -I

INTRODUCTION

INTRODUCTION TO HOME LOANS

Home is a dream of a person that shows the #uantity of efforts, sacrifices

luxuries and above all gathering funds little by little to afford one(s dream.

Home is one of the things that everyone one wants to own. Home is a shelter

to person where he rests and feel comfortable. )any banks providing home loans

whether commercial banks or financial institutions to the people who want to have a

home.

H*+ -Housing *evelopment $nd +inance orporation Home /oan, India

have been serving the people for around three decades and providing various housing

loan according to their varied needs at attractive 0 reasonable interest rates. 1wing to

their wide network of financing, H*+ Housing /oans provides services at your

doorstep and helps you find a home as per your re#uirements.

)any banks are providing home loans at cheapest rate to attract consumers

towards them. The more customer friendly attitude of these banks, currently offer to

consumers cheapest loan over homes.

2ith the 34I reducing bank rate, the home loan market rates nose diving by

56 basis points. The H*+ 4ank and !tandard chartered bank has become the first

player in this sector to announce a housing loan for a 76 years period. %o doubt it will

enhance the end cost people to plan their house over longer duration now8 it has been

made easy for a person to buy that dream house which he dreamt of long ago.

H*+ also provides with Home Improvement /oan for internal and external

repairs and other structural improvements like painting, waterproofing, plumbing andelectric works, tiling and flooring, grills and aluminum windows. H*+ finances up

to 95: of the cost of renovation -'66: for existing customers .

urrent status is that H*+ reduced home loan rates by 56 basis points for all

its existing floating rate customers.

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ADVANTAGES OF HOME LOANS:-

The various benefits of home loans arising to the customers are;

(i Attr!cti"# int#r#$t r!t#$:-

The various banks offer attractive interest rates to boost and help their

customers. )any banks provide loans on fixed or floating rates to facilitate

consumers as per their needs.

(ii H#%& in o'nin ! )o*#:-

The home availed by a person with the help of banks, because they provide

technical and financial assistance to customers for owning their dream home.

(iii No r#+uir#*#nt o, u!r!ntor:-

The commercial banks now a day, liberali


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("i For !ccid#nt!% d#!t) in$ur!nc# :-

!ome banks provide free accidental death insurance with housing loan which

is also beneficial for the customers.

BAN.S IN INDIA

India has a well developed banking system. )ost of the banks in India were

founded by Indian entrepreneurs and visionaries in the pre independence era to

provide financial assistance to traders, agriculturists and budding Indian industrialists.

Indian banks have played a significant role in the development of Indian economy by

inculcating the habit of saving in Indians and by lending finance to Indian industry.

The commercial banking structure in India consists of; !cheduled ommercial 4anks

and >nscheduled 4anks. !cheduled commercial 4anks constitute those banks, which

have been included in the !econd !chedule of 3eserve 4ank of India -34I $ct,

'?=@.

FOREIGN BAN.S IN INDIA

+oreign banks have brought latest technology and latest banking practices in

India. They have helped made Indian 4anking system more competitive and efficient.Aovernment has come up with a road map for expansion of foreign banks in India.

M!/or ,or#i n 0!n1$ in Indi! !r#:

$4% $)31 4ank

$bu *habi ommercial 4ank /td.

$merican Express 4ank /td

4%P Paribas

itibank

*4! 4ank /td

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*eutsche 4ank

H!4 /td

!tandard hartered 4ank

N!tion!%i2#d B!n1$ in Indi!

4anking !ystem in India is dominated by nationali


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1riental 4ank of ommerce

Pun"ab and !ind 4ank

Pun"ab %ational 4ank

!tate 4ank of 4ikaner 0 &aipur

!tate 4ank of Hyderabad

!tate 4ank of India -!4I

!tate 4ank of Indore

!tate 4ank of )ysore

!tate 4ank of Patiala

!tate 4ank of !aurashtra

!tate 4ank of Travancore

!yndicate 4ank

> 1 4ank

>nion 4ank of India

>nited 4ank of India

Ci"aya 4ank .

Pri"!t# B!n1$ in Indi!

$ll the banks in India were earlier private banks. They were founded in the preindependence era to cater to the banking needs of the people. 4ut after nationali


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the Indian 4anking Industry. Housing *evelopment +inance orporation /imited

-H*+ was amongst the first to receive an Din principleD approval from the 3eserve

4ank of India -34I to set up a bank in the private sector.

M!/or Pri"!t# B!n1$ in Indi! !r#:

*hanalakshmi 4ank

+ederal 4ank

H*+ 4ank

I*4I 4ank

IndusInd 4ank

I%A Cysya 4ank

&ammu 0 ashmir 4ank

arnataka 4ank

arur Cysya 4ank

otak )ahindra 4ank

!4I ommercial and International 4ank

!outh Indian 4ank

>TI 4ank

FE! 4ank

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OB3ECTIVES OF STUD4

There is no strongest foundation for your dream home, than a cheap loan. Home loanshave become that stronger foundations for people who want to own a home. The main

ob"ectives of the study are as follows;

5 The main ob"ective of this study is to know the ustomers perceptions about home

loans of H*+ 4$% .

66 To analy


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NEED OF THE STUD4

The main purpose of this study is to attain the knowledge of the processing system of

home loans. The main purpose of the study are as follows;

To know the ideas of customers about home loan products and services.

To study the satisfaction level of customers about home loans.

To study the problems faced by customers in obtaining the home loans.

To learn about various aspect of H*+ 4$% .To learn about various aspect of H*+ 4$% .

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SCOPE OF STUD4

The Indian housing finance industry has grown by leaps and bound in few years. total

home loans disbursements by banks has risen which witnesses phenomenal growth

from last 5 years. There are greater number of borrowers of home loans. so by this

study we can find out satisfaction level of customers and problems faced by them in

obtaining home.

RESEARCH METHODOLOG4 OF THE STUD4

RESEARCH METHODOLOG4:-

3esearch methodology is a way to systematically show the research problem.

It may be understood as a science of studying how research is done scientifically. It is

necessary for the researcher to know not only the research methods but also the

methodology.

To know the ustomers perceptions about home loans of H*+ 4$% .

To study the satisfaction level of customers about home loans.

To study the problems faced by customers in obtaining the home loans.

To make comparative study of disbursement of home loans by commercial

banks, the study shall be conducted in the manner enumerated below

RESEARCH DESIGN:-

This pro"ect is based on exploratory study as well descriptive study. It was an

exploratory study when the customer satisfaction level was studied to suggest new

methods to improve the services of H*+ 4$% in providing home loans and it was

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descriptive study when detailed study was made for comparison of disbursement of

home loans by commercial banks.

SOURCES OF DATA:-

To fulfill the information need of the study. The data is collected from primary

as well as secondary sources

A - PRIMAR4 SOURCE:-

I decided primary data collection method because our study nature does not permit to apply observational method.

In survey approach we had selected a #uestionnaire method for taking a customer

view because it is feasible from the point of view of our sub"ect 0 survey purpose.

2e conducted '66 sample of survey in our pro"ect to "udge the satisfaction level of

customers which took home loans.

S!*&%# $i2#?-

+or the #uestionnaire I have taken the sample si


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/arge sample gives reliable result than small sample. However, it is not feasible to

target entire population or even a substantial portion to achieve a reliable result. !o, in

this aspect selecting the sample to study is known as sample si


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i" /ack of data was also the other limitation of the study as some of banks do not

have proper data on topic.

" There was limitation of time to conduct such a big survey in limited available time.

"i Ignorance and reluctant attitude of customers was also a ma"or limitation in this

study.

Thus above all were the limitations in this research study. The maximum

efforts were made to overcome these limitations in the study.

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CHAPTER-II

REVIE OF LITERATURE

SUMMAR4:-

$fter going through pervious studies of Home loans I came to conclude

that

There is growth of home loans after 766'.

Home loans have an inverse relation with interest rates i.e. when interest rate

low the demand of home loans increase. -1"ha '?9G

People are going more towards home loans than private mortgage

insurance .-4erstain 7669

Aovernment taking various steps to encourage people to go toward home

loans .-Haavio, auppi 7666

Arowth of home loans are due to increase of living standard of people,

shifting from "oint family to nuclear family .-/acourr, )icheal 766G

There are some problems also attach with these home loans such as time i.e

filling of application of loan to closing ,people have their own specified needs fromthese home loans which are not fulfilling. -/acour )icheal 766B .

!4I provide a very low interest rate on home loans as compared to other

banks. -!4I )ay 7666

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No' !,t#r t)i$ conc%u$ion t)# d#t!i%$ o, r#"i#'$ !r# 0#%o'-

B#r$t!in D!"id (6>>= examined in his study taken from 766' to 7669 that in

this period there is increase use of home loans as compared to private mortgage

insurance -P)I .he have divided his study into four sections. !ection ' describes

why people are going more for home loans than P)I. the main reason for this that

now home loans market provide Piggybank loans for those people who don(t have

76: of down payment. !ection 7 tells the factors responsible for the growth of home

loans and the risks on shifting toward home e#uity market without any P)I coverage.

P)I can protect lenders from most losses up to 96: of /TC and the absence of P)Iwill result in considerable losses in an environment.

L! courr Mic)#!% (6>>; analysis in his study the factors affected the increase in the

level of $nnual percentages rates -$P3 spread reporting during 76'@ over 766@. the

three main factors are changes in lender business practices8 -7 changes in the risk

profile of borrowers8 and -= changes in the yield curve environment. The result show

that after controlling for the mix of loan types, credit risk factors, and the yield curve,

there was no statistically significant increase in reportable volume for loans

originated directly by lenders during 76'@, though indirect, wholesale originations did

significantly increase.

L! cour Mic)#!% (6>> examined the home purchase mortgage product preferences

of /)I households. 1b"ectives of his study to analysis the factors that determined

factors their choice of mortgage product , is different income groups have some

specified need to met particular product. The role pricing and product substitution

play in this segment of the market and do results vary when loans are originated

through mortgage brokers +or this they have use the regression analysis and the

results are high interest risk reduce loan value. !elf employed borrower chooses

reduce documented loans than salaried workers.use of this product type seems to be

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more prevalent among borrowers with substantial funds for down payment and better

credit scores.

Dr R!n !r!/!n C (6>>5 said that the financial system of India built a vast network

of financial institutions and markets over times and the sector is dominated by

banking sector which accounts for about two third of the assets of organi


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customers services, credit procedure and internal control systems. It observed that

present methods of working out branch profitability are not appropriate and an

integrated costing and financial reporting system is needed.

D#&!rt*#nt o, B!n1in or!tion$ !nd d#"#%o&*#nt RBI: 4ombay

observed that the rapid expansion of banks activities since '?G6 called for a phase of

consolidations to improve the #uality of banks operational efficiency, productivity

and customer services.

HOME LOAN PRODUCTS OF HDFC BAN.

H*+ 4ank home loan provide not "ust the most competitive interest rates 0

best level of service, but also products designed to cater to the specific needs of

consumer. %ew products M %ew features in existing products are introduced based on

customer feedback. hoose the H*+ 4ank Home /oan that suits your needs.

Ho*# Lo!n$

Home /oans are provided to individuals to own a residential property.

H*+ 4ank offers easy home loans for

+irst Purchase in ready construction

>nder construction property

Purchase in re sale

!elf construction 0 extension of existing living space

The following are the features of H*+ 4ank Home /oans

Home loan amount can be chosen to suit specific needs

1ne can avail of a loan up to 95: of ost 1f Property

onveniently pay off the loan over a period of up to 75 years

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It can be availed at the +loating rate of Interest or at the +ixed rate of

Interest or at the combination of both +ixed 0 +loating rates

E%i i0i%it Nor*$ ,or Ho*# Lo!n$ .

Home /oans can be availed by 3esident Indian whether !alaried or !elf Employedand also by %on 3esident Indian who are !alaried. +or resident Indians the following

are the eligibility norms

Fou must be at least 7' years of age when the loan is sanctioned.

The loan must terminate before or when you turn B5 years of age or

before retirement, whichever is earlier.

Fou must be employed or self employed with a regular source of

income.

L!nd Lo!n

/and loans give an opportunity for individual customer to purchase a residential plot

of land to do self construction. Thus, customer can invest now in a plot of land 0

build in future. The /and loan can be financed only within municipal limits or in case

of direct allotment outside municipal limits by *$.

/and /oan can be availed by 3esident Indian whether !alaried or !elf Employed and

also by %on 3esident Indian.

Ho*# I*&ro"#*#nt Lo!n$

Home Improvement /oan is offered to facilitate improvement of a self owned

dwelling unit to existing or new customer. HI/ considers a range of facilities internal

or external to the structure without increase in the living pace. Thus, a customer can

add or improve facilities to his dwelling unit with a loan at Home E#uity /oan rate of

interest

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Home Improvement /oan can be availed by 3esident Indian whether salaried or !elf

Employed.

O,,ic# &r#*i$#$ %o!n$ :

1ffice Premises /oan can be used for purchase, construction, extension 0 also

for improvement -at the time of ac#uisition of office premises . It creates an

opportunity to extend loans to self employed individuals to house their profession or

business giving a permanent address for generating steady flow of income. The

product can also include the estimate of renovation at the time of purchase of the

property. This loan is especially meant for self employed professionals like *octors,

$rchitects etc.

Lo!n on &)on#:

/oan 1n Phone is a pre sanctioned loan. Its is based on the existing relationship of

the customer with H*+ 4ank. The biggest advantage is that the customer can get

the loan with minimum documentation. Aood banking transactions and repayment

records becomes a strength for availing loans in future.

/oan on Phone can be availed by 3esident Indian whether !alaried or !elf Employed

Ho*# #+uit %o!n:

/oan against property gives the owner of residential or commercial premises to

leverage on the value of the property. It offers the ability to unlock funds gives the

advantage of looking at the asset as a source of security bringing li#uidity and

retaining ownership.

Prort o"#rdr!,t:

The overdraft facility from H*+ 4ank allows you to borrow money against your

self occupied property. The overdraft facility comes with a multi city che#ue book

and phone banking facility. The customer is charged interest only for the amount that

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he withdraws from the account. 2henever he deposits funds into the account, they go

towards reducing the outstanding balance in the account.

It offers the following benefits; Aenerating capital against property -3 or - for business or

personal use

onvenience of Pre !anctioned limit and draw as you need

Pay interest on the amount drawn and for days utili


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If your spouse is earning, put himMher as a co applicant. The

additional income shall be included to enhance your loan amount.

Incidentally, if there are any co owners they must necessarily be co

applicants.

*id you know that your blood relater income can also be considered

for sanctioning the loan on your combined income The

disbursement of the loan, however, will be done only after you

submit proof of your marriage.

Providing additional security like bonds, fixed deposits and /I

policies may also help to enhance eligibility.

Docu*#nt$ r#+uir#d ,or %o!n $!nction

The leading home loan provider offers attractive interest rates and unbeatable

benefits to ensure that you get the best deal without any hassles. eeping your

convenience in consideration, we ask you for minimal mandatory documents for the

sanctioning of your home loan.

$t H*+ 4ank we re#uire the following documents to sanction your home

loan;

S!nction Docu*#nt$

*uly ompleted $pplication +orm

Photograph

+ee che#ue

Photo identity proof

$ge proof

!ignature verification proof

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3esidence address proof

Docu*#nt$ ,or $!%!ri#d o&%#

/ast three months salary slips

+orm 'B

4ank statements for last B months from salary account

3epayment track record of existing loans

Docu*#nt$ $ci,ic ,or S#%, E*&%o #d

Income Tax 3eturn M omputation of Total Income M $uditors 3eport M

4alance !heet M Profit 0 /oss $ccount certified by hartered

$ccountant for last 7 years -= years for Home E#uity -both for business

and personal of partnersMdirectors

4ank !tatement for last B month from operating account

3epayment Track record of existing loans M /oan closure letter

4oard 3esolution in case of a company

Proof of existence

1ffice $ddress Proof

Photo Identity Proof, 3esidence $ddress Proof, !ignature Cerification is

re#uired to be provided for all the main partners M directors.

These are the documents re#uired for sanctioning a loan. Fou may be asked to

submit further legal documents if re#uired by H*+ 4ank or its approved lawyers.

*o retain photocopies of all documents being submitted by you.

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Di$0ur$#*#nt o, our HDFC B!n1 )o*# %o!n

2e disburse the loan amount after you identify and select the property or home

that you are purchasing and submit the re#uisite legal documents.

2hile you may be under the impression that the list of documents asked for is

rather extensive, please note that it is for your own good. Each and every single

document asked for will be verified and checked to ensure your safety.

This may take some time but we want to ensure a clear title and will complete

all the legal and technical verifications to ensure that you have full rights to your

home.

Four loan will be disbursed after you identify and select the property or home

that you are purchasing and on your submission of the re#uisite legal documents.

The 7=6 $ learance of the seller and M or =GI clearance from the appropriate income

tax authorities -if applicable is also needed.

1n satisfactory completion of the above, on registration of the conveyance deed

and on the investment of your own contribution, the loan amount -as warranted by the

stage of construction will be disbursed by H*+ 4ank.

Di$0ur$#*#nt Docu*#nt$

Property documents -as per P0* for respective states and as asked by

empanelled lawyers for individual cases

+acility $greement

*isbursal 3e#uest +orm

he#ue !ubmission

E ! or $uto *ebit for H*+ 4ank account holders or Post *ated

he#ues for E)I

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E ! or $uto *ebit for H*+ 4ank account holders or Post *ated

he#ues for E)I

Personal Auarantor(s *ocuments -PA +orm, Photograph, Identity

Proof, $ddress Proof, !ignature Cerification and Income documents,

if applicable

In case of property is owned by a company

)emorandum of Entry

+orm 9

%1

F%# i0%# In$t!%%*#nt P%!n (FLIP

+/IP is a variant for structuring enhanced eligibility of home loan applicants

with varying tenure of income source. This repayment facility is given when income

is going to reduce after certain time during the loan tenure due to one of the

borrowers retiring before loan maturity. The E)I payable becomes affordable based

on individual income source and also matching the family cash flow. This variant is

offered typically to family members "oining as applicants like husband 0 wife or

father 0 son with varying tenure of service Period M $ge norm.

+/IP has the following features

+/IP considers income of two applicants and offers step down

repayment facility

1ne of the applicants should have service period till the end of the

tenure of the loan

+/IP would have two different E)Is during the tenure of the loan

%ormally the first E)I would be based on the combined income

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The second E)I would be smaller 0 based on the lower income with

longer tenure of the applicant.

)!t i$ t)# r#&! *#nt t#nur#

3epayment tenure is the tenure for the number of year for which the loan gets

sanctioned. 2e offer you a wide range of options for the tenure of the loan. Fou can

take a home loan for up to 75 years provided you do not reach the age of B5 years or

retire within that period.

Ho' i$ t)# %o!n r#&!id

$ll loan repayments are done via e#uated monthly installments -E)I .

)!t i$ !n EMI

$n E)I refers to an e#uated monthly installment. It is a fixed amount which

you pay every month towards your loan. It comprises of both, principal repayment

and interest payment.

)#n do#$ t)# r#&! *#nt $t!rt

E)I payments start from the month following the month in which the full

disbursement has been made.

Ho' i$ t)# EMI &!id

The E)I is to be paid every month through post dated che#ues -P* s or

E%#ctronic C%#!rin S $t#* (ECS . If you are opting for P* s, then you will have

to provide =B P* s upfront. The P* s are to be dated on the 'st of every month.

However, if you receive your salary a few days later, we provide the flexibility of

dating the che#ues for the '6th of the month. In case you have an H*+ !avings

account you can also go in for the facility of $uto *ebit.

75


26/75

)#n do I &! PEMI$

The first PE)I is payable by che#ue by the end of the month in which the

disbursement is made and each subse#uent PE)I at the end of every month till the

commencement of E)I. In case you have an H*+ !avings account you can also go

in for the facility of $uto *ebit.

A&&%ic!tion Proc#$$ o, our Ho*# Lo!n

Four search for the perfect home loan ends here at H*+ 4ank home loan,

even before your have found the perfect property.

The moment you decide to buy a home, you can put in your application for a

home loan. Fes, you can apply for a home loan even before you have selected the

property.The property need not even be in the same city where you are residing. The only

condition being that H*+ 4ank has home loan operations in both the cities.

!hould there be a change in your financial status or plans, you can withdraw

your sanction within B months of approval of your home loan.

However, we are always ready to assist our customers in the event of legitimate

problems. $nd, we might reconsider this if we find that there are satisfactory reasons

for the delay.

$nd, neither would we charge you extra for this delay.

If it is refinancing you are interested in, it is possible within B months from the

date of purchase of property.

Insurance Plans for your Home /oan

Introducing exclusive )o*# %o!n in$ur!nc# that can provide cover to your

Home loan in the face of any unforeseen event happening to your life. In case of any

of these happenings, your family will have the support of the insurance cover to pay

for the outstanding Home loan, without being burdened by the loan E)IDs.

7B


27/75

CHAPTER-III

INTRODUCTION TO THE INDUSTR4

THE HISTOR4 OF INDIAN HOME LOANS:-

Ho*# %o!n$ in Indi! have made people 4uy Property in India in spite of the

skyrocketing prices. Today, we find considerable 3eal Estate Investment in India,

either in the field of 3esidential Property in India or ommercial Properties in India.

Home /oans in India are disbursed by many 4anks as /oan 4anking is on of the most

important function of the +inancial !ervices in India. Property *ealers and 3eal

Estate onsultants in India usually recommend that we undertake appropriate Home

/oan or )ortgage /oan counseling so that we can 4uy $partment in India at an

affordable )ortgage 3ate. Purchasing the home of your dreams is not an easy task.

Especially when you plan to buy a home on loan. Home loan means that you buy a

house on installments. In simpler terms when you want to own a home and can(t

afford to pay the amount in lump sum, you can pay it in monthly installments with an

interest rate.

The interest rates of home loans are expected to go down even further according

to analysts who foresee a cut down in the rates by the 34I in the wake of the decisiontaken by >! +ederal 3eserve to cut its rates by a significant margin.

There are number of companies offer cheap home loans at a low interest rate. Fou

can avail loan against existing house for renovation or expansion etc. There are many

nationali


28/75

available in the market. 2e have listed all the important housing finance institutes and

some of the top home finance banks providing lowest interest rates.

In the last few years, housing loan scenario in India has changed drastically. It

has taken a front seat and people are looking forward to owning their own houses. It

is no more a dream that re#uired lifetime saving and a difficult decision to make.

Today the new home purchase loan is much easily available and is much cheaper than

what was available earlier. 4anks are now everywhere and the schemes are

implemented even in villages and smaller towns. The housing loans are popular there

too, however, the activity of building flats is little slow. It would not be wrong to say

that there has been a boom in the home loan market and with this boom8 there is also

a boom in the %umber of home loans mortgage brokers in India.

The main reason for this boom in home loan market is the change in government policies. It is our government(s motivation that the home loan interest rates in India

have fallen considerably. /ot many banks are offering home loans and this is

available at low E)Is -E#uated monthly Installments . High E)Is are now a thing of

past. Today lending rate is in the range of G.5 to '5 :.

$gain, there are different types of home loans available today. The interest rate

available is also of two different types. 1ne is the fixed rate loan and the other is the

floating rate loan. In the fixed rate loan, whatever interest is fixed on the start of loan

is carried on for the complete period.

There is also a trend to opt for home construction loan. This loan is available

to those who want to design their homes according to their re#uirement and taste. In

other words, this loan is meant for those who themselves want to construct their new

home.

$s shared earlier, taking a loan is not a difficult task. However, before taking a

loan, one must reali


29/75

rates going down, people increasingly number apply to take these loans. !ome of the

leading banks offering home loans in India, including H*+ 4ank, I*4I 4ank,

H*+ 4ank , 4ank of 4aroda, !4I, !tandard hartered 4ank and $xis 4ank .

Ho*# Lo!n Proc#dur# in Indi! ;

Su0*i$$ion o, A&&%ic!tion For*: - $fter choosing a particular home loan, the

customer submits the application form to the housing finance company -H+ along

with other relevant documents as re#uired by the H+ . They comprise documents to

establish income, age, residence, employment, investments, etc.

V!%id!tion o, t)# In,or*!tion: - In the next stage, H+ s validate the information

provided by the customer on the application form. They usually conduct checks on

the residential address of the customer, the place of employment of the customer, and

credentials of the employer.

I$$u# o, S!nction L#tt#r :- $fter due appraisal of customer profile, a sanction letter

is issued which contains details such as loan amount, rate of interest, annual M monthlyreducing balance, tenor of the loan, mode of repayment and general terms and

conditions of the loan. This is the actually the approval of the money lending

procedure by the company. However, the money is sanctioned only after the

documents and the property on behalf of which the loan is being granted is

thoroughly verified.

Su0*i$$ion o, Docu*#nt$: - 1nce the sanction letter is passed, the customer is

re#uired to leave the entire set of original documents pertaining to the property being

purchased with the H+ as security for the loan amount sanctioned. These documents

remain in the custody of the H+ till the time the loan is fully repaid. 1nce the

documents are handed over to the H+ , they send all the documents for a thorough

legal scrutiny.

7?


30/75

V!%id!tion o, Prort : - Prior to disbursement, the H+ also conducts a site visit to

the customerDs property to ensure that all construction norms have been adhered to

properly. 1nce the H+ is satisfied that the property is legally and technically clear,

they disburse the loan amount. The disbursement from the H+I is on the basis of the

stage of construction of the property.

P! *#nt Proc#dur#: - 1nce all the above mentioned process, the borrower is

entitled to take the money from the lender party. >ntil such time that the entire

sanctioned amount is not drawn, the customer is supposed to pay a simple interest on

the $ctual $mount drawn -without any principal repayments . The E)I payments

commences only after the entire sanctioned loan amount is drawn.

INTEREST RATES PROVIDED B4 VARIOUS BAN.S

Fin!nc# In$titutionLo!n P#riod

(in #!r$Fi #d

EMI L!1)

(INRF%o!tin

EMI L!1)

(INR

4ank of 4aroda

>p to 5 ?.66 76GB 9.66 7679

B to '6 ?.75 '7=6 9.75 '77G'' to '5 ?.56 '6@@ 9.75 ?G6'B to 76 ?.56 ?=7 9.56 9B9

!tate 4ank 1f India

>p to 5 ?.56 7'66 9.G5 76B@B to '6 ?.G5 '=66 ?.75 '796'' to '5 ?.75 '67?'B to 76 ?.G5 ?@?

H*+

>p to 5 '' 7'G5 ?.56 7'6'B to '6 '' '=G5 ?.56 '7?@'' to '5 '' ''=G ?.56 '6@5'B to 76 '' '6== ?.56 ?==

=6
http://www.guide2homeloan.com/loans/hfcs/bob-housing-finance.aspxhttp://www.guide2homeloan.com/loans/banks/state-bank-of-india.aspxhttp://www.guide2homeloan.com/loans/hfcs/HDFC.aspxhttp://www.guide2homeloan.com/loans/hfcs/bob-housing-finance.aspxhttp://www.guide2homeloan.com/loans/banks/state-bank-of-india.aspxhttp://www.guide2homeloan.com/loans/hfcs/HDFC.aspx


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H*+ 4ank

>p to 5 '6.G5 7'B7 ?.56 7'6'

B to '6 '6.G5 '=B@ ?.56 '7?@'' to '5 '6.G5 G7' ?.56 '6@5'B to 76 '6.G5 '6'B ?.56 ?==

/I Housing +inance

>p to 5 '6.56 7'@? ?.56 7'66B to '6 '' '=G= ?.56 '7?@'' to '5 '' ''=G ?.56 '6@@'B to 76 '' '6=7 ?.56 ?=7

P%4 Housing +inance

>p to 5 ?.66 76GB '6.56 7'56B to '6 ?.66 '7BG '6.56 '=56'' to '5 ?.75 '6=6 '6.56 ''6B'B to 76 ?.56 ?== '6.56 ???

The above table illustrates the comparison between the interest rates from

various Housing +inance ompanies and banks. It can be seen that if one wishes to

go for floating loans, the bank which gives the best deal as far as the interest rate is

concerned is H*+ followed by P%4 Housing +inance with the lower rates.

Loc1-in ,!ci%it 0 0!n1$:-

$ lock in, also called a rate lock or rate commitment, is a lender(s promise to

hold a certain interest rate and a certain number of points for you, usually for a

specified period of time, while your loan application is processed. -Points are

additional charges imposed by the lender that are usually prepaid by the consumer at

settlement but can sometimes be financed by adding them to the mortgage amount.

1ne point e#uals one percent of the loan amount.

9 8 I ndi!n M!r1#t ,or Ho*# %o!n$ i$ *or# t)!n R$ 9>> >>> cror#:-

Today, not only the metros are witnessing the housing crunch even the second tier

cities like &aipur, 4huvneshwar, /ucknow, Trivendrum etc. are falling into the dearth

of living space and wanting for more expansion.

Indi! R#&ort:

='
http://www.guide2homeloan.com/loans/hfcs/ICICI.aspxhttp://www.guide2homeloan.com/loans/hfcs/lic-housing-finance.aspxhttp://www.guide2homeloan.com/loans/hfcs/pnb-housing-finance.aspxhttp://www.guide2homeloan.com/loans/hfcs/ICICI.aspxhttp://www.guide2homeloan.com/loans/hfcs/lic-housing-finance.aspxhttp://www.guide2homeloan.com/loans/hfcs/pnb-housing-finance.aspx


32/75

Indian credit report in comparison to the other $sian countries is shown in the

statistics below, which is among the lowest. It is Indian psyche that credit is termed

bad, Indian are traditionally not inclined to take credit this reflects in the figures

below;

GRAPH

COMPAN4 PROFILE

=7


33/75

OF

HDFC HOSING DEVELOPMENT FINANCE CORPORATION LTD

INTRODUCTION ;Hou$in D#"#%o&*#nt Fin!nc# Cor&or!tion Li*it#d , founded '?GG by

3avi )aurya and Hasmukhbhai Parekh , is an Indian %4+ , focusing on home

mortgages . H*+ Ds distribution network spans 7@= outlets that include @? offices of

H*+ Ds distribution company, H*+ !ales Private /imited. In addition, H*+

covers over ?6 locations through its outreach programmes. H*+ Ds marketing efforts

continue to be concentrated on developing a stronger distribution network. Home

loans are also !harcket through H*+ !ales, H*+ 4ank /imited and other third

party *irect !elling $gents -*!$ .

H*+ Incorporated in '?GG with a share capital of 3s '6 rores, H*+ has

since emerged as the largest residential mortgage finance institution in the country.

The corporation has had a series of share issues raising its capital to 3s. ''? rores.

The gross premium income for the year ending )arch =', 766G stood at 3s. 7,95B

rores and new business premium income at 3s. ',B7@ rores. The company has

covered over 9,GG,666 lives year ending )arch =', 766G.

H*+ operates through almost @56 locations throughout the country with its

corporate head #uarters in )umbai, India. H*+ also has an International 1ffice in

*ubai, >$E with service associates in uwait, 1man and Natar. H*+ is the largest

housing company in India for the last 7G years.

SNAPSHOT-I

==
http://en.wikipedia.org/w/index.php?title=Ravi_Maurya&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ravi_Maurya&action=edit&redlink=1http://en.wikipedia.org/wiki/Hasmukhbhai_Parekhhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/NBFChttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/w/index.php?title=Ravi_Maurya&action=edit&redlink=1http://en.wikipedia.org/wiki/Hasmukhbhai_Parekhhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/NBFChttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/HDFC_Bank


34/75

Incorporated in '?GG as the first specialiJHDFCASSET

MANAGEMENT

67 6 JHDFC

BAN. ( inclusive ofwarrants)

=@


35/75

/oan $pprovals 3s. 965 billion.

->p to *ec 766G ->! '9.=6 bn.

/oan *isbursements 3s.BB? billion

->p to *ec. 766G ->! '5.76 bn Housing >nits financed 7.5 million.

*istribution

1ffices '9'

1utreach Programs ?6

HDFC Li*it#d

T Public -4!E ; 5666'6

Found#d '?GG

H#!d+u!rt#r$ )umbai ,India

.# o&%#3avi )aurya

Hasmukhbhai Parekh

Indu$tr Housing +inanceR#"#nu# >! =.@@ billion -76'7

E*&%o ##$ ',9==-)arch 76'=

#0$it# www.hdfc.com

.E4 EKECUTIVE HDFC HOUSING DEVELOPMENT FINANCE CO LTD

:-

Mr. Deepak S Parekh: - serves as Executive hairman and hief Executive 1fficer of

the 4oard of Housing *evelopment +inance orp. /td., -H*+ . He "oined H*+

/imited in a senior management position in '?G9. He was inducted as a whole time

director of H*+ /imited in '?95 and was appointed as its Executive hairman in

=5
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500010http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Ravi_Maurya&action=edit&redlink=1http://en.wikipedia.org/wiki/Hasmukhbhai_Parekhhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.hdfc.com/http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500010http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Ravi_Maurya&action=edit&redlink=1http://en.wikipedia.org/wiki/Hasmukhbhai_Parekhhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.hdfc.com/


36/75

'??=. He is the hief Executive 1fficer of H*+ /imited. )r. Parekh is a +ellow of

the Institute of hartered $ccountants -England 0 2ales .

Mr . * *i$tr : - The )anaging *irector of the orporation. He has been employed

with the orporation since '?9' and was the executive director of the orporation

since '??=. He was appointed as the deputy managing director in '??? and the

)anaging *irector in 7666. He is also a member of the Investors( Arievance

ommittee of *irectors.

M$ R#nu S .!rn!d: - The Executive *irector of the orporation. !he has been

employed with the orporation since '?G9 and was appointed as the Executive

*irector of the orporation in 7666. !he is responsible for overseeing all aspects of lending operations of H*+ .%ew *elhi.

BOARD OF DIRECTORS:-

)r. * ! Parekh hairman )r. * % Ahosh

)r. eshub )ahindra Cice hairman *r. ! $ *ave

)s. 3enu !. arnad Executive *irector )r. C. !rinivasa rangam

)r. ) )istry O E1 *r. 3am ! Tarne"a

)r. !hirish 4 Patel )rs. 3enu sud karnad

)r. 4 ! )ehta )r. * ) !atwalekar

GROUP COMPANIES:-

H*+ 4ank; 2orld lass Indian 4ank among the top private banks in India.

H*+ $) ; 1ne of the top = $) s in India Preferred investment manager.

Intelenet Alobal; 4P1 services for international customers.

=B


37/75

I4I/; redit Information 4ureau India /imited.

H*+ hubb; >pcoming Private companies in the field of Aeneral Insurance.

H*+ )utual +und

H*+ reality.com; H elps to search properties in all ma"or cities in India H*+ securities

H*+ !tandard /ife Insurance ompany /td $ug, 7666

3OINT VENTURE

H*+ !tandard /ife Insurance ompany /imited was one of the first

companies to be granted license by the I3*$ to operate in life insurance sector.

3each of the &C player is highly rated and been conferred with many awards. H*+

is rated Q$$$( by both 3I!I/ and I 3$. !imilarly, !tandard /ife is rated Q$$$(

both by )oody(s and !tandard and Poor(s. These reflect the efficiency with which

H*+ and !tandard /ife manage their asset base of 3s. '5,666 r and 3s. B66,666

r. respectively.

H*+ !tandard /ife Insurance ompany /td was incorporated on '@ th $ugust

7666. H*+ is the ma"ority stakeholder in the insurance &C with 9'.@: staple and

!tandard of as a staple '9.B: )r. *eepak !atwalekar is the )* and E1 of the

venture.

H*+ !tandard /ife Insurance ompany /td. Is one of India(s leading Private /ife

Insurance ompanies, which offers a range of individual and group insurance

solutions. It is a "oint venture between Housing *evelopment +inance orporation/imited -H*+ /td. India(s leading housing finance institution and the !tandard

/ife $ssurance ompany, a leading provider of financial services from the >nited

ingdom. 4oth the promoters are will known for their ethical dealings and financial

=G


38/75

strength and are thus committed to being a long term player in the life insurance

industry all important factors to consider when choosing your insurer.

Bu$in#$$ Gro't):-

The company commands a market share of over B6: in the housing financesector. /everaging on its brand e#uity H*+ has also entered the Indian )utual +und

scene #uite recently. H*+ was the only applicant to be given clearance by the

government, to enter the 3s 756 bn life insurance business. This in itself speaks

volumes about the management(s professional reputation.

(TABLE:- 6 Fin!nci!% Sn!&$)ot

Gro't) r!tio$ F456 F457 F458 5HF459

1perating income 77.7': 77.G': 'B.?6: 7'.'G:

1ther income =='.G: [email protected]: 7'5: =B9.9:

%et profits ='.B6: =6.'9: 7B.65: 76.@?:

$pprovals 79.?: 75.7: =6.=: ==.@:

*isbursements ='.': 7@.@: ='.7: ='.5:

: change compared to corresponding previous period

The entry of new players has not in any way significantly reduced H*+ (s

domination in terms of volume. However, the increased competition has led to a

decline in interest spread -the difference between interest income earned and interest

paid . 1ver the last couple of years H*+ (s spread has shrunk from 7.': in financial

year '??G to '.9: in financial year 7666. 2hen it comes to containing risk, the

company(s track record is among the best in the financial sector. *uring the financial

=9


39/75

year 7666, H*+ has reduced the #uantum of loans where payment was in arrears to

"ust 6.?: of its portfolio. This is because individuals account for nearly G6: of its

total outstanding loans. The high level of an individual investor(s personal

contribution in a house makes the possibility of default less likely.

BUSINESS OB3ECTIVES:- The primary ob"ective of H*+ is to enhance

residential housing stock in the country through the provision of housing finance in a

systematic and professional manner, and to promote home ownership.

$nother ob"ective is to increase the flow of resources to the housing sector by

integrating the housing finance sector with the overall domestic financial markets.

ORGANISATIONAL GOALS:- H*+ Ds main goals are to ;a develop close relationships with individual households,

b maintain its position as the premier housing finance institution in the country,

c transform ideas into viable and creative solutions,

T $ o, Product$ o,,#r#d

H*+ provide loans to meet all your re#uirements for you to make that house ahome.

Ho*# I*&ro"#*#nt Lo!n

Ho*# E t#n$ion Lo!n

Lo!n$ to &ro,#$$ion!%$ ,or o,,ic# or c%inic

Ho*# E+uit Lo!n$ (Lo!n A !in$t Prort

Lo!n ! !in$t R#nt r#c#i"!0%#$

=?


40/75

S)ort T#r* Brid in Lo!n

Lo!n$ to &ro,#$$ion!%$ ,or non-r#$id#nti!% &r#*i$#$ %o!n

.# A$$oci!t#$ !nd Su0$idi!ri#$: - These are;

HDFC BAN.:-

7=.7B: owned by H*+ -inclusive of warrants

)arket ap >! '' billion

$*3s listed on %F!E

',@'7 branches, 579 cities, 7,9?6 $T)s

1ver '7 million customer accounts

HDFC St!nd!rd Li,# In$ur!nc# Co*&!n Ltd (HDFC-SL :-

Structur#:- !trong and stable partnership;

Tie up with !tandard /ife $ssurance ompany, >. .

H*+ holds G7.7B: of the e#uity of H*+ !/

Product$: - *iversified product portfolio covering all life stages and needs;

1ffers 76 individual products and 5 group plans along with 5 optional riders

1ffers 9 fund options with market linked products

M!r1#t $)!r# : - )arket share of G.=: -private sector and @.G: -overall in terms

of Effective Premium.

@6


41/75

.# r,or*!nc# indic!tor$ !nd 0u$in#$$ &r!ctic#$: - $ diversified distribution

mix including the tied agency and alternate channels

4anks, brokers, telemarketing, direct sales force Tied agency contributed B@:

effective premium in N' 6? !trong bank assurance tie ups with public,

private, co operative and foreign banks amongst the leading players in the

pensions segment /everaging technology to strengthen processes.

2orkflow system awarded the best technology innovation

2eb based facility to service customers and channel partners

HDFC ASSET MANAGEMENT:-

Tie up with !tandard /ife Investments -!/I

H*+ holds B6: of H*+ $sset )anagement

H*+ )+ offers =@ e#uity and debt oriented products

Earned a Profit after Tax of 3s '.'9 billion for +F698 3eturn on E#uity; G5:

Paid a dividend of '56: for +F69 to e#uity shareholders

E#uity assets as a proportion of the mutual fund(s $>) is =5:.

TABLE:- 8CONSOLIDATED EARNINGS:-

(A$ !t M!rc) 75 6>>nmarried B6 =6:

Total 766 '66:

4ase 766 respondents

CHART-= 6

@B


47/75

INTERPRETATION:-

+rom the table and graph above it can be seen that

G6: respondent(s are married.

=6: respondent(s are unmarried.

@G


48/75

Educ!tion!% +u!%i,ic!tion o, r#$&ond#nt $

TABLE-= 7

Sr No C!t# or No o, R#$&ond#nt$ P#rc#nt! #' >nder graduate 56 75:7 Araduate 96 @6:= Post graduate G6 =5:

Total 766 '66: 4ase 766

respondents

CHART-= 7

@9


49/75

INTERPRETATION:-


75: respondent(s are under graduate.

@6: respondent(s are Araduate.

=5: respondents are Post graduate.

@?


50/75

Nu*0#r O, #!r $ Ar# 4ou in H d#r!0!d

TABLE-= 8

Sr No C!t# or No o,

R#$&ond#nt$

P#rc#nt! #

' /ess than five

years

G9 =?:

7 )ore than five

years

'77 B':

Total 766 '66:

4ase 766 respondents

56


51/75

CHART-= 8

St! in #!r$ in H d#r!0!d

INTERPRETATION:-


=?: respondent(s are in Hyderabad is less than five year(s.

B': respondent(s are in Hyderabad is more than five year(s.

5'


52/75

CUSTOMER PROFILE OF SURVE4ED RESPONDENTS

TABLE = 9:Cu$to*#r &ro,i%# No o, r#$&ond#nt$

!tudent GHousewife 5

2orking Professional ''B4usiness @?

!elf Employed 7@Aovernment service employee 7@

57


53/75

C)!rt-= 9

INTERPRETATION:-

+rom the table and graph above it can be seen that;

5': of the respondents are working professionals, 77: are into business and '': are

self employed, '': of the respondents are government service employee and =: of

the respondents are student and 7: of the respondents are house wife.

5=


54/75

ANNUAL HOUSE HOLD INCOME

TABLE-=

Sr No C!t# or No o, R#$&ond#nt$ P#rc#nt! #' /ess than 7 lacs ?9 @?:7 4etween 7 to 5 lacs B7 =':= 4etween 5to 9lacs =6 '5:@ )ore than 9 lacs '6 5:

Total 766 '66: 4ase 766 respondents

CHART-=

5@


55/75

INTERPRETATION:-


@?: respondent(s annual household income is less than 7 lacs.

=': respondent(s annual household income is between 7 to 5 lacs.

'5: respondent(s annual household income is between 5 to 9 lacs.

5: respondent(s annual household income is more than 9 lacs.

55


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Do ou 1no' !0out HDFC BAN.

TABLE = ;:

C!t# or No o, R#$&ond#nt$

Fes 'B@

%o 'B

5B


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CHART:-= ;

A'!r#n#$$ !0out HDFC BAN.

INTERPRETATION:-


?': respondent(s are known about H*+ 4$% ?: respondent(s are not known about H*+ 4$%

5G


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T!0%# =


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Int#r&r#t!tion ;To interpret the response of the #uestions, the figures shows that most of the

customers find the problem in availability of funds i.e. =B: and very less number of

customers found problem in paying cash in one go is =5:, customers get housing

loan for tax benefits is 7@:. This was the expected response because a large number

of people find a problem of availability of funds which works as an obstacle in

owning a dream home.

In todayDs life, people hardly earn both means and ends of life and they donDt

have much of money to buy a home or a land to construct house because of cost of

property. !o, they take the advantage of home loans provided by different banks at

different terms feasible to the customers. There are very less number of people, who

donDt own home even when they have sufficient funds and they take the advantage of

home loans because they donDt want to pay huge cash in one go.

1n the basis of study, it is concluded that most of people lack of money in

fulfiling their dreams and few of them were reluctant to pay cash in one go and

wanted to pay their home loans slowly in installments.

5?


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T!0%#-= =

Fro* ')#r# ou )!"# ot our )o*# ,in!nc#d

N!*# o, B!n1$ co*&!n P#rc#nt! # o, cu$to*#r$

H*+ 4$% 55

Pun"ab %ational 4ank '5

!tandard hartered 4ank 6G

H*+ 4$% 76

$ny other 6=

To understand the response more effective and closely, it has been showeddiagrammatically as follows ;

A3$PH; ?.?

B6


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Fro* ')#r# ou )!"# ot our )o*# ,in!nc#d

INTERPRETATION:-

The analysis showed that a large number of customers prefer H*+ 4$% as

compared to others. The data shows that G: of customers took loan from !tandard

hartered 4ank, 76: of customers from H*+ 4$% , '5: ustomers took loan

from Pun"ab %ational 4ank, 55: of customers took loan from H*+ 4$% and a

=: of customers fall under the category of D$ny otherD which included !tate 4ank of India, anara 4ank, Pun"ab and !ind 4ank, etc.

The data shows that most of people prefer H*+ 4$% compared to public

sector banks and other private banks. This is because of the extra services provided by

H*+ 4$% . However, there is less difference in figures of H*+ 4ank and Pun"ab

%ational 4ank. 4ut there is considerable difference in figures of the two private

sector banks i.e. H*+ 4ank and !tandard hartered 4ank. $s H*+ is the market

leader in the home loans sector. This may be the reason for such difference in

!tandard hartered 4ankDs percentage and H*+ 4ankDs percentage. $nother reason

for speciali


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T!0%#-= 5>

Sourc#$ o, in,or*!tion !0out Ho*# Lo!n$ Sc)#*#

Sourc#$ o, in,or*!tion P#rc#nt! # o, cu$to*#r$

%ewspapers @?

)aga


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P#rc#nt! # o, $ourc# o, in,or*!tion !0out )o*# %o!n$ $c)#*#

Sourc#$ o, in,or*!tion !0out Ho*# Lo!n$ Sc)#*#

INTERPRETATION ;

The data shows that around 76: of customers got information from source of

D2ord of )outhD which includes information from friends, relatives, colleagues etc.

@?: of customers got information from newspapers, only 'B: of customers from

maga


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T!0%#-= 55

O&inion !0out t)# $#r"ic#$ o, HDFC BAN.

S#r"ic#$ o, HDFC BAN.

P#rc#nt! # o, cu$to*#r$ ! r##in

Stron %! r##

A r## N#utr!% Di$! r## Stron %di$! r##

a. Professionallymanaged

9B: '6: @:

b. 3eliable 0transparent

BG: ==:

c. !ocially responsible G5: '6: '5: @:

d. ustomer care 76: B9: 9:

e. Nuery handling 76: GB: @:

GRAPH-= 55

B@


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O&inion o, cu$to*#r$ !0out HDFC BAN.

INTERPRETATION:-

ustomers from H*+ 4$% are #uite satisfied from their services like

#uery handling and customers social responsibility of banks towards

customers and professionally managed services. They donDt give so good

response to reliability and transparency services of banks. !o, customerDs

satisfaction level toward H*+ 4$% services is lightly satisfied.

T!0%#-= 56

B5


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O&inion o, cu$to*#r$ !0out )o*# %o!n $c)#*#$

HDFC BAN.:-

S#r"ic#$ o, HDFCBAN.

P#rc#nt! # o, cu$to*#r$ ! r##inStron %

! r## A r## N#utr!% Di$! r##Stron %di$! r##

a. $mount of loan B6: =5: 5:

b. /egal formalities @7: @5: '@:

c. Interest rates =7: 5B: '7:

d. 3epayment options 7B: B@: '6:

e. !ecurity demanded 76: =7: @9:

f. Installments 55: @6: 5:

g. !ervices @5: =6: '9: B: ':

h. Processing for sanction of loan

55: 7@: '9: =:

GRAPH:- = 56

P#rc#nt! # o, $!ti$,!ction %#"#% o, cu$to*#r$ o, HDFC BAN.

BB


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INTERPRETATION:-

The analysis shows that the customers of H*+ 4$% gave B6 percent of

amount of loan and legal proceedings, 5B: to interest rates, @5: to proceedings and

services, 55: to installments. !o, customer of H*+ 4$% didnDt give response

regarding the services of the bank M company except to the amount of loan and legal

formalities.

T$4/E; ?.'=

DATA GIVES PREFERENCE OF RESPONDENTS OF HOME LOANSCOMPANIES AND BAN.S

BG


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COMPAN4 S NAME NO OFRESPONDENTS (J

H*+ 4$% G9 G9!T$%*$3* H$3TE3E*

4$% 7 7

H*+ 4$% '6 '6

P%4 G G

!4I = =

T1T$/ '66 '66

GRAPH:-= 57

B9


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NO OF RESPONDENTS

INTERPRETATION:-

+rom the table and graph above it can be seen that;

G9: of the people contacted prefer H*+ 4$% to any other and therefore it

is ranked no.' by that percent of respondents.

PROBLEMS FACED B4 CUSTOMERS IN AVAILING HOME LOANS

B?


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There are everything in the world has good or bad points. %o doubt banking

industryM company has made many efforts to enhance the customer satisfaction but

customer still faced some problems. These are high lightened as below;

' The customer does not have proper knowledge about different home loan

products so they face problem in making a good deal.

7 There are procedural delays, which harass the customer(s lot. This will

crush the curtsy of customers to avail the home loan.

= The attitude of bank employees sometimes non cooperative and it creates a

hurdle in building trust and onfidence among customers about banks.

@ The banks do not take into account the paying capacity of customers. !o

some customers are not able to get amount of loan needed by them.

!o above discussed are the problems which faced by customers while availing home

loans.

CHAPTER-V

G6


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FINDINGS

'. H*+ 4ank having good brand image in the minds of customers.

7. )a"ority of the people got loans from H*+ 4ank only

=. )ost of the customers are not aware of the products of H*+ home loans

@. !ome of the customer(s felt that the interest rates are some what high

5. !ome of the customer not having good faith on private banks

B. )ost of the people are directly go to bank to apply a home loan

G. !ome of the customer of H*+ already benefited through H*+ home loan

products and services

9. ustomer awareness is medium about H*+ products.

?. H*+ providing good services to their customers.

G'


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RECOMMENDATIONS

reate awareness; The ompany has to take care of awareness creation aboutthe products and services among the customers.

harges; The ompany has to reduce the mortality and administration

charges.

The process is some what late to sanction a loan.

The company has to reduce their interest rates on home loan products and

services.

The company has to identify the potential customers.

Production promotion strategies should be improved.

ompany should consider the present competition and should act according to

the customer needs.

G7


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CONCLUSION

In my study we came to know that many peoples are interested to

take a home loan from H*+ 4ank to construct their homes.

Home loans have long period when compare to other personal loans

and other loans. !o peoples are confused to take a home loan.

The interest rates also some what high when compare to other banks.

Even though the interest rates are high peoples are willing to take a

loan from H*+ 4ank due to some reasons.

The loan sanction process is low when compare to other banks.

+or disbursement process is also it will take low time when compare

to other banks

G=


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References:

BOOKS

otler, Philip and $rmstrong, Araw Principles 1f )arketing, Pearson

Education, Hyderabad 76'7

otler, Philip O )arketing management; $nalysis, Planning, Implementations

and control, Pearson Education, Hyderabad. 766=, '' th edition.

!harma & 4usiness !tatistics -Pearson Education .

JOURNALS

4usiness 2orld

4usiness Today

The Economic Times

INTERNET

www.H*+ .com

www.H*+ bank.com

www.google.com

www.wikipedia.org

www.statebankofindia.com

G@
http://www.icici.com/http://www.icicibank.com/http://www.google.com/http://www.wikipedia.org/http://www.icici.com/http://www.icicibank.com/http://www.google.com/http://www.wikipedia.org/


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UESTIONNAIRE

*$T$ AICE! P3E+E3E% E 1+ 3E!P1%*E%T! 1+ H1)E /1$%!1)P$%IE! $%* 4$% !

1PI%I1% 1+ >!T1)E3! $41>T H1)E /1$% ! HE)E!

1PI%I1% $41>T THE !E3CI E! 1+ H*+ 4$%

!1>3 E! 1+ I%+13)$TI1% $41>T H1)E /1$%! ! HE)E

+31) 2HE3E F1> H$CE A1T F1>3 H1)E +I%$% E*

3E$!1%! +13 AETTI%A THE H1)E +I%$% E*

*1 F1> %12 $41>T H*+ 4$%

$%%>$/ H1>!E H1/* I% 1)E

>!T1)E3 P31+I/E 1+ !>3CEFE* 3E!P1%*E%T!

%>)4E3 1+ FE$3(! I! F1> I% HF*E3$4$*

E*> $TI1%$/ N>$/I+I $TI1% 1+ 3E!P1%*E%T(!

AE%*E3 /$!!I+I $TI1% 1+ !>3CEFE* 3E!P1%*E%T!

$AE A31>P 1+ !>3CEFE* 3E!P1%*E%T!

home loans of hdfc

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