19443643 a Study on Home Loans Rajni Mba3rd Sem Financecolrdias Delhi

8/13/2019 19443643 a Study on Home Loans Rajni Mba3rd Sem Financecolrdias Delhi

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STUDENT DECLARATION

This is to certify that I have completed the Project titled A STUDY ON

HOM !OANS" #$der the %#ida$ce of Mr& Amit '#mar (#pta" i$ the

partial f#lfillme$t of the re)#ireme$t for the a*ard of the de%ree of

Masters i$ +#si$ess Admi$istratio$" from ,#-mi$i Devi I$stit#te Of

Adva$ced St#dies. Ne* Delhi&" This is a$ ori%i$al *or- a$d I have $ot

s#/mitted it earlier else*here&

,A0NI


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CERTIFICATE

This is to certify that the project titled A STUDY ON HOM !OANS"

is a$ academic *or- do$e /y ,A0NI" s#/mitted i$ the partial f#lfillme$tof the re)#ireme$t for the a*ard of the de%ree of Masters i$ +#si$ess

Admi$istratio$" from ,#-mi$i Devi I$stit#te Of Adva$ced St#dies. Ne*

Delhi&" #$der my %#ida$ce a$d directio$& To the /est of my -$o*led%e

a$d /elief the data a$d i$formatio$ prese$ted /y him i$ the project has $ot

/ee$ s#/mitted earlier else*here&

Mr& Amit '#mar (#pta 1Project (#ide2,DIAS


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ACKNOWLEDGEMENT

"Gratitude is not a thing o e!ression# it is $ore $atter o ee%ing&"

There is al*ays a se$se of %ratit#de *hich o$e e3press to*ards others for their help a$d

s#pervisio$ i$ achievi$% the %oals& This formal piece of ac-$o*led%eme$t is a$ attempt to

e3press the feeli$% of %ratit#de to*ards people *ho helpf#l me i$ s#ccessf#lly completi$%

of my trai$i$%&

I *o#ld li-e to e3press my deep %ratit#de to Mr&A$it Khannamy trai$i$% coordi$ator

for their co$sta$t co4operatio$& He *as al*ays there *ith his compete$t %#ida$ce a$d

val#a/le s#%%estio$ thro#%h o#t the p#rs#a$ce of this research project& Special tha$-s to

Mr&A$it Ku$ar Guta*ho %#ided me to *or- ho$estly a$d to %ive val#a/le s#%%estio$

for improvi$% my *or- !ast /#t $ot least I *o#ld also li-e to place of appreciatio$ to all

the respo$de$ts *hose respo$ses *ere of #tmost importa$ce for the project&

A/ove all $o *ords ca$ e3press my feeli$%s to my pare$ts. frie$ds all those perso$s *ho

s#pported me d#ri$% my project& I am also tha$-f#l to all the respo$de$ts *hose

cooperatio$ 5 s#pport has helped me a lot i$ collecti$% $ecessary i$formatio$&

I *o#ld also li-e to tha$- almi%hty (od for his /lessi$%s sho*ered o$ me d#ri$% thecompletio$ of project report&


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E'ECUTI(E SUMMAR)

Home is a dream of a perso$ that sho*s the )#a$tity of efforts. sacrifices l#3#ries

a$d a/ove all %atheri$% f#$ds little /y little to afford o$e6s dream& Home is o$e of thethi$%s that everyo$e o$e *a$ts to o*$& Home is a shelter to perso$ *here he rests a$d feelcomforta/le& Ma$y /a$-s providi$% home loa$s *hether commercial /a$-s or fi$a$ciali$stit#tio$s to the people *ho *a$t to had a home& The ho#si$% sector plays a$ importa$trole i$ the eco$omic developme$t of the co#$try&

My project title is A STUDY ON HOM !OANS"& I selected this topic /eca#seThe I$dia$ ho#si$% fi$a$ce i$d#stry has %ro*$ /y leaps a$d /o#$d i$ fe* years&Totalhome loa$s dis/#rseme$ts /y /a$-s has rise$ *hich *it$esses phe$ome$al %ro*th fromlast 7 years& There are %reater $#m/er of /orro*ers of home loa$s&so /y this st#dy *e ca$fi$d o#t satisfactio$ level of c#stomers a$d pro/lems faced /y them i$ o/tai$i$% homeloa$s&

M* o+,e-ti.es o stud* are/8 To ma-e comparative st#dy of Dis/#rseme$t of home loa$s /y commercial /a$-s&8 To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s&8 To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s&9or this I had ta-e$ fo#r commercial +a$-s i$ Dehrad#$ city $amely HD9: +a$-. PN+.sta$dard chartered +a$-. S+I& It i$cl#des t*o p#/lic sector /a$-s a$d t*o private sector/a$-s& The period of st#dy is five years comme$ci$% from ;


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The c#stomer does $ot had proper -$o*led%e a/o#t differe$t Home loa$ prod#cts

so they face pro/lem i$ ma-i$% a %ood deal&

There are proced#ral delays. *hich harass the c#stomers lot this *ill cr#sh the

c#rtsy of c#stomers to avail the home loa$&

The attit#de of /a$- employees some times $o$ cooperative a$d it creates a h#rdle

i$ /#ildi$% tr#st a$d :o$fide$ce amo$% c#stomers a/o#t /a$-s& The /a$-s do $ot ta-e i$to acco#$t the payi$% capacity of c#stomers& So some

c#stomers are $ot a/le to %et amo#$t of !oa$ $eeded /y them&

9i$ally the *hole research *as carried o#t i$ a systematic *ay to reach at e3act res#lts&The *hole research a$d fi$di$%s *ere /ased o$ the o/jectives some of the limitatio$ facedi$ collecti$% the data *ere !ac- of time. lac- of data. $o$4respo$se. rel#cta$t attit#de a$dilliteracy of respo$de$ts. *hich posed pro/lems i$ carryi$% o#t the research&

So$e o the suggestions are

To i$crease their c#stomers. the /a$-s sho#ld provide speciali?ed services i$ this

sector& These services ca$ /e s#ch as proper %#ida$ce to the :#stomer re%ardi$%the processi$% of loa$s. especially for the c#stomers *ho are illiterate&

To satisfy their c#stomers a$d for %ood deali$%s i$ f#t#re. the /a$-s sho#ld ma-e

prompt dis/#rseme$t of loa$ amo#$t to the c#stomers so that they ca$ /#y orco$str#ct their dream home as early as possi/le&

The +a$-s sho#ld #se easy proced#re. or say. less le$%thy proced#re for the

sa$ctio$i$% of loa$ to the c#stomer& There sho#ld /e less $#m/er of le%alformalities. i$ case this e3ists. the$. these sho#ld /e completed i$ less time& This

*ill /e helpf#l i$ attracti$% more c#stomers&

Altho#%h the i$terest rates o$ specific $orms. yet c#stomers see- less i$terest rate

*hich ca$ lo*er their cost of ho#se& So /a$-s sho#ld try to lo*er their i$terestrates& Needles to say. that the /a$- *hich havi$% lo*er i$terest rates. have thema3im#m clie$ts for loa$s&

The p#/lic sector /a$-s sho#ld improve their overall services to i$crease the

$#m/er of c#stomers for home loa$s& They sho#ld recr#it professio$als to provides#ch services a$d to satisfy the c#stomers&

&


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TA3LE OF CONTENTS

Student De-%aration 44444444444444444444&& i

Certii-ate ro$ Co$an*5 Organi6ation 4444444444& 4 iiCertii-ate ro$ guide44444444444444444444 iii

A-1no0%edge$ent&&4444444444444444444&&&&&&& i.

E!e-uti.e Su$$ar*444444444444444444444&&.

Chater S-he$e4444444444444444444444&& .iList o Ta+%es444444444444444444444444.ii

List o grahs444444444444444444444444.iii

List o -harts444444444444444444444444&i!

List o A++re.iations44444444444444444444&&& !

C7A8TER 9: INTRODUCTION/

9&9 Introdu-tion to ho$e %oans4444444444&&&&&&&&&&&&&&& 9

9&; Ad.antages o ho$e %oans444444444444449

9&< Disad.antages o ho$e %oans444444444444&&& ;

9&= Dis+urse$ent o ho$e %oans4444444444444 ECTI(ES OF T7E STUD)444444444&&&9&; No& o 7o$e %oan a--ount ho%ders

>&B 7o$e %oans distri+uted +* 7DFC and -o$$er-ia% +an1s

>&= Re-o.er* o 7o$e %oans:/

>&7 Outstanding +a%an-e

C& Age grou o sur.e*ed resondents

C&; Gender -%assii-ation o sur.e*ed resondents

C&B Edu-ation ua%ii-ation o resondent2s

C&= No &o *ears are *ou in Dehradun

C&7 Custo$er roi%e o sur.e*ed resondents

C& Annua% househo%d in-o$e

C&@ Do *ou 1no0 a+out 7DFC LTD

C&> Reasons or getting 7o$e inan-ed


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C&C Fro$ 0here *ou ha.e got *our 7o$e inan-ed

C&< Sour-e o inor$ation ho$e %oans s-he$e

C& Oinion a+out the ser.i-es o 7DFC LTD

C&; Oinion o -usto$ers a+out 7o$e %oan s-he$e

C&B Data gi.es reeren-es o resondents o 7o$e %oans-o$anies and +an1s


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LIST OF GRA87S

GRA87 NO TITLE 8AGE NO

B&9 Indian Mar1et or 7o$e %oans is $ore than

Rs&B -rore:/;>

B&; Indian 7o$e %oans Industr* ;C

B&< Indian Mar1et or 7ousing $ortgage inan-e

-o$aniesB


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&99 Oinion a+out the ser.i-es o 7DFC LTD C

&9; 8er-entage o satisa-tion %e.e% o -usto$ers o

7DFC LTD

CB

&9< Data gi.es reeren-e o resondents ho$e %oans

-o$anies and +an1sC=


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LIST OF C7ARTS

C7ART

NO

TITLE 8AGE NO

?&9 Snashot o 7DFC LTD 7

&= Sta*ing *ears in Dehradun >;

&B Custo$ers roi%e o sur.e*ed resondents >B

&? Annua% house ho%d In-o$e >=

C&@ A*are$ess a/o#t HD9: !TD >7

&9 8er-entage o sour-e o inor$ation a+out ho$e %oans

s-he$e>C


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LIST OF A33RE(IATIONS

A33RE(IATIONS E'8ANSION

RO(R RECOMMENDATION O(ER

NRI NON RESIDENT INDIAN

R3I RESER(E 3ANK OF INDIA

8N3 8UN>A3 NATIONAL 3ANK

S3I STATE 3ANK OF INDIA

IIR INCOME TO INSTALLMENT RATIO

FLI8 FLE'I3LE LOAN INSTALMENT 8LAN

DSAs DIRECT SELLING AGENTS

3SAs 3USINESS SELLING AGENTS

DCO(R DOU3LE C7ECKING O(ER

R8LR RETAIL 8RIME LENDING RATE


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C7A8TER/ 9


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C7A8TER 9

INTRODUCTION

9&9 INTRODUCTION TO 7OME LOANS

Home is a dream of a perso$ that sho*s the )#a$tity of efforts. sacrifices l#3#riesa$d a/ove all %atheri$% f#$ds little /y little to afford o$e6s dream& Home is o$e of the thi$%s that everyo$e o$e *a$ts to o*$& Home is a shelter toperso$ *here he rests a$d feel comforta/le& Ma$y /a$-s providi$% home loa$s *hether

commercial /a$-s or fi$a$cial i$stit#tio$s to the people *ho *a$t to have a home&HD9:41Ho#si$% Developme$t A$d 9i$a$ce :orporatio$2 Home !oa$. I$dia have

/ee$ servi$% the people for aro#$d three decades a$d providi$% vario#s ho#si$% loa$accordi$% to their varied $eeds at attractive 5 reaso$a/le i$terest rates& O*i$% to their*ide $et*or- of fi$a$ci$%. HD9: Ho#si$% !oa$s provides services at yo#r doorstep a$dhelps yo# fi$d a home as per yo#r re)#ireme$ts&

Ma$y /a$-s are providi$% home loa$s at cheapest rate to attract co$s#mersto*ards them& The more c#stomer frie$dly attit#de of these /a$-s. c#rre$tly offer toco$s#mers cheapest loa$ over homes&

I$ vie* of ac#te ho#si$% shorta%e i$ the co#$try. a$d -eepi$% i$ mi$d the social Eeco$omic role of commercial /a$-s i$ the prese$t times. the ,+I advised /a$-s to

e$co#ra%e the flo* of credit for ho#si$% fi$a$ce&Fith the ,+I red#ci$% /a$- rate. the home loa$ mar-et rates $ose4divi$% /y 77 of the cost of re$ovatio$ 1


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The vario#s /a$-s offer attractive i$terest rates to /oost a$d help their c#stomers&Ma$y /a$-s provide loa$s o$ fi3ed or floati$% rates to facilitate co$s#mers as per their$eeds&

Hii 7e% in o0ning a ho$e:/

The home availed /y a perso$ *ith the help of /a$-s. /eca#se they providetech$ical a$d fi$a$cial assista$ce to c#stomers for o*$i$% their dream home&Hiii No reuire$ent o guarantor:/

The commercial /a$-s $o* a day. li/erlise their la*s re%ardi$% home loa$s& Someof /a$-s do$6t eve$ re)#ire the %#ara$tor to %ra$t loa$ to their co$s#mers& They also ma-eco$s#mers free /y relivi$% him to fi$d a %#ara$tor to complete the proceedi$%s of availi$%loa$&

Hi. Door/Ste Ser.i-es:/

These door to step services are provided from e$)#iry sta%e to the fi$al dis/#rseme$tta-es place s#ch services are /e$eficial for c#stomers i$ prese$t /#sy life& +a$-s li-e

I:I:I /a$- a$d sta$dard chartered /a$- provide door to step services to c#stomers to/orro* loa$&

H. Loan eriod:/

There are ma$y /a$-s *hich provide ma3im#m loa$ te$#res #pto 74;< years /asedo$ the loa$ amo#$t a$d the creati/ility of c#stomers& This relieves the c#stomers to repayloa$ amo#$t till a lo$% period&

H.i For a--identa% death insuran-e :/

Some /a$-s provide free accide$tal death i$s#ra$ce *ith ho#si$% loa$ *hich isalso /e$eficial for the c#stomers&

These /e$efits or adva$ta%es of home loa$s are respo$si/le for ma-i$% tha$ sopop#lar amo$% c#stomer that a perso$ *ho do$6t have their home a$d *a$t to /#y. theydo it *ith home loa$& Home loa$s help s#ch perso$s i$ ma-i$% their dream home&

9&< DISAD(ANTAGES OF 7OME LOANS:/The mai$ disadva$ta%es of home loa$s are hi%h li%hte$ed as /elo*

Hi De%a*s in ro-essing :/

Ma$y times. there are h#%e delays i$ processi$% of providi$% home loa$s /eca#sevario#s form#latio$s to /e f#lfilled i$ this process& D#e to these delays c#stomers feelme$tally as *ell as fi$a$cially *ea-&

Hii F%u-tuating interest rates :/

Some /a$-s %ive home loa$s at floati$% rates. *hich fl#ct#ate at Differe$t i$tervalsd#e to some reaso$s& These cha$%es sometimes. may lead to i$crease i$ i$terest rate *hich*ill i$crease the cost of home loa$s to the c#stomers

Hiii 7igh Cost:/


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The p#/lic sector /a$-s char%e hi%h processi$% cost for home loa$6s sa$ctio$i$%&They are forced to pay serio#s char%es at vario#s sta%es to f#lfill the re)#ireme$ts& Someco$s#mers are $ot a/le to pay s#ch char%es so s#ch people co#ld $ot avail the /e$efits ofhome loa$ schemes&

Hiii 8ro+%e$s in dis+urse$ent:/

There are ma$y pro/lems i$ dis/#rseme$t of home loa$ amo#$t& There are somedelay i$ dis/#rseme$t of loa$ amo#$t to the c#stomers d#e to le%al formalities& Thisca#ses pro/lems to the c#stomers&

These are limitatio$s or disadva$ta%es of home loa$s& +#t some times some /a$-schar%es hi%h i$stallme$ts to repay loa$ amo#$t& S#ch also ca#ses pro/lem to c#stomers&These limitatio$s ca$ /e removed /y providi$% %ood a$d promote services to thec#stomers&

9&= DIS3URSEMENT OF 7OME LOANS :/

The every /a$- has its o*$ proced#re to dis/#rse the loa$ amo#$t amo$%c#stomers& After choosi$% yo#r ri%ht home. the $e3t step is dis/#rseme$t of home loa$s&The loa$ amo#$t is dis/#rsed after ide$tifyi$% a$d selecti$% the property or home that arep#rchased a$d s#/mit the re)#isite le%al doc#me$ts& I$ the dis/#rseme$t of home loa$s aclear title a$d f#ll verificatio$ to e$s#re that a perso$ has f#ll ri%hts o$ his ho#se& The;B


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:om/i$atio$ I$come :l#//i$% 4

7us+and/Wie: / I$come of h#s/a$d4*ife ca$ /e cl#//ed&

8arent / son: 4 It ca$ /e cl#//ed if o$ly so$ is there /#t $ot if a$y male si/li$% e3ists&

3rother/3rother: 4 If they are c#rre$tly stayi$% to%ether a$d i$te$d to stay to%ether i$the $e* property. the$ o$ly. their i$come4ca$ /e cl#//ed for a/ove p#rposes&

3rother/Sister: 4 No cl#//i$%4is possi/le&

Sister/Sister : / No cl#//i$% is possi/le&

8arent/Minor/ Chi%d: 4 No cl#//i$% is possi/le i$ this case also&

Hiii Genera% Ter$s and Conditions: / The follo*i$% are the terms a$d co$ditio$s

applica/le to the /asic home loa$ prod#ct o$ly& These are li-ely to cha$%e o$ the /asis ofthe variatio$s of the home loa$ prod#ct& Typically. i$ %e$eral home loa$s. the follo*i$%co$ditio$s are applica/le :/

9 The loa$ to val#e ratio 1!TK2 ca$$ot e3ceed a partic#lar perce$ta%e& This differs fromprod#ct to prod#ct a$d from o$e Ho#si$% 9i$a$ce I$stit#tio$al +a$- 1H9IJ+2 toa$other& The compo$e$ts of the val#e of the Property calc#lated here are covered#$der cost of property&

; The ma3im#m te$#re of the /a$- is $omi$ally fi3ed /y H9IJ+s& Ho*ever. H9lsJ+s doprovide for differe$t te$#res *ith differe$t terms a$d co$ditio$s&


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@ Some H9IsJ+s i$sists o$ %#ara$tees from other i$divid#als for the repayme$t of theloa$& I$ s#ch cases. the c#stomers has to arra$%e for the perso$al %#ara$tee /efore thedis/#rseme$t of the loa$ ta-es place&

The property sho#ld /e tech$ically clear /efore the H9IsJ+s dis/#rses the loa$s

amo#$t& Most of i$stit#tio$s a$d /a$-s have a teams of tech$ical e3perts *ho visit the siteto %et a tech$ical report /efore the dis/#rseme$t of loa$& This is also /e$eficial to thec#stomer as they chec- for the tech$ical )#ality a$d complia$ce *ith local la*s&

The property sho#ld /e le%ally clear /efore o$e ca$ avail of a dis/#rseme$t of the loa$amo#$t& Ho#si$%49i$a$ce I$stit#tio$s J+a$-s 1H9IsJ+s2 ta-e le%al cleara$ce from theirla*yers /efore the dis/#rseme$t of amo#$t& This proves to /e /e$eficial to the c#stomersas a le%al e3pert chec-s hisJher doc#me$tatio$ to e$s#re that heJshe %et a proper title to theproperty&

9 The dis/#rseme$t of the loa$ is as per the pro%ress of co$str#ctio$ of the property

#$less it is a ready property i$ *hich case the dis/#rseme$t *ill /e /y o$e si$%le che)#e&PMI or simple i$terest o$ the loa$ amo#$t dis/#rsed to the c#stomer i$ case of a partdis/#rseme$t *ill /e paya/le /y the c#stomer o$ the dis/#rseme$t&

99 The dis/#rseme$t i$ most cases *ill /e favori$% the /#ilder or the seller or thesociety or the developme$t a#thority as the case may /e& The dis/#rseme$t *ill come i$the c#stomerLs favo#r #$der special circ#msta$ces o$ly&

9; The repayme$t of loa$ ca$ /e made either thro#%h ded#ctio$ a%ai$st salary. post4dated che)#es. sta$di$% i$str#ctio$s or A#to de/it i$str#ctio$s to /a$-&

9


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o$e ma-e to the H9IJ+ s#/se)#e$tly& Most H9lsJ+s ref#$d the processi$% fee if the loa$applicatio$ is rejected&

+ Ad$inistrati.e ees :/

This char%e is a%ai$. $ormally. a perce$ta%e of the loa$ amo#$t sa$ctio$ed& It iscollected /y the H9IJ+ for the mai$te$a$ce of c#stomerLs records. iss#i$% i$terestcertificates. le%al char%es. tech$ical char%es. etc& tho#%h the te$#re of the loa$& It ispaya/le /y the c#stomer *he$ heJshe accepts the offer letter %ive$ /y the H9IJ+& Thispayme$t has to /e made /efore the availme$t of the dis/#rseme$t& The mode of collectio$of these fees varies from o$e H9IJ+ to a$other&

- Rate o interest :/

This is the rate of i$terest applica/le o$ the loa$ amo#$t thro#%h the te$#re of theloa$& It is char%ed o$ the pri$cipal mo$thly red#ci$% method& Most H9IsJ+s %ive a$ optio$

to select either a fi3ed rate of i$terest or a varia/le rate of i$terest&

d Lega% Charges:/

Some H9IsJ+s mai$ly P#/lic Sector +a$-s levy le%al char%es that they i$c#r o$%etti$% the property doc#me$ts vetted /y their pa$el of la*yers&

e Te-hni-a% Charges:/

These char%es are also levied /y certai$ Ho#si$% 9i$a$ce I$stit#tio$sJ+a$-s1H9IsJ+s2 to meet their e3pe$ses o$ the tech$ical site visits to the c#stomerLs property&This e$s#res )#ality of co$str#ctio$ a$d co$str#ctio$ *ithi$ the $orms as stip#lated /y therespective approval a#thority&

Sta$ dut* and registration -harges:/

H9Is that %o i$ for a re%istered mort%a%e pass these char%es o$ to the c#stomer&These are rather heavy i$ certai$ states depe$di$% o$ the la*s laid do*$ /y the state*here o$e /#y a property&

g 8ersona% Guarantee ro$ Charges :/

Si$ce the perso$al %#ara$tee provided /y the c#stomer $eed to /e stamped. thesechar%es are also recovered from the c#stomer& They are char%ed to him /y H9Is *hodema$d for (#ara$tees&


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h Cheue 3oun-e Charges :/

I$ case the che)#es thro#%h *hich o$e ma-e a payme$t to H9ls %et disho$ored. somemi$im#m char%es are levied /y the H9I& The same are recovered from the c#stomer&

Hi De%a*ed a*$ent -harges :/

H9lsJ+s char%e delayed payme$t char%es from the c#stomer if heJshe delays thepayme$t of i$stallme$ts /eyo$d the d#e date&H, Additiona% -harges :/

These are levied as a perce$ta%e o$ the delayed payme$t char%es /y most H9ls& Theyare levied if o$e fail to pay the d#es *ithi$ the stip#lated time after a delay has ta-e$

place&

H1 In-identa% -harge :/

This is paya/le i$ case the H9IJ+ se$ds a represe$tative from their or%a$i?atio$ tocollect their o#tsta$di$% d#es& It is $ormally char%ed at a flat rate per visit& These char%esare levied /y most H9lsJ+s&

% 8rea*$ent Charges :/

This is a pe$alty char%ed /y H9lsJ+s from *he$ o$e ma-es either a part prepayme$t

or a f#ll repayme$t of the loa$& This char%e is levied o$ly o$ l#mp s#m payme$ts a$d $oto$ the Mls that o$e pays& This char%e is levied o$ the amo#$t prepaid /y o$e a$d $ot o$the e$tire o#tsta$di$% pri$cipal& These char%es are %rad#ally /ei$% disco#$t& So. these arethe char%es levied /y most Ho#si$% 9i$a$ce I$stit#tio$s a$d +a$-s *hile %ra$ti$% homeloa$ to the c#stomers& No*. the decisio$ o$ the repayme$t capacity shall /e tal-ed a/o#tas follo*s&

H. >udge$ent regarding rea*$ent -aa-it* on the +asis o in-o$e :/

To #$dersta$d ho* the i$come of a c#stomer is co$sidered to arrive at his repayme$tcapacity. it is first $ecessary to classify c#stomers i$to salaried a$d self employed

i$divid#als&

aThe i$come of the salaried i$divid#al is co$sidered i$ the follo*i$% ma$$er4

(ross mo$thly i$come as it appears o$ the salary slip


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Less:/A$y $o$ re%#lar varia/le i$come appeari$% o$ the salary slip 1i$cl#di$% overtime.etc&2

Add : /7< per ce$t of the avera%e varia/le i$come of the last si3 mo$ths&

Add: /A$y fi3ed cashJvo#cher payme$ts for *hich proof ca$ /e s#/mitted&

Add: /7< per ce$t of the avera%e varia/le cashJvo#cher payme$ts *ith proof li-e traveli$%reim/#rseme$t etc&

Add :/H,A receiva/le if $ot /ei$% received already i$ the salary slip&

The a/ove i$come calc#lated for the calc#latio$ of eli%i/ility #si$% II, a$d 9OI, $orms&9or calc#latio$ of 9OI,. the i$stallme$ts of all the loa$s that o$e has availed of c#rre$tlyfor *hich repayme$t is /ei$% made is ta-e$ i$to acco#$t as *ell& The lo*er of the t*oeli%i/ilities is co$sidered as the ma3im#m repayme$t capacity&

+ To co$sider i$come of Self4employed i$divid#als *e f#rther classify them i$toProfessio$als a$d $o$4professio$als &

8roessiona%s: / :omprisi$% doctors. chartered acco#$ta$ts. la*yers. architects.

etc& 9or calc#latio$ of eli%i/ility of professio$alLs i$come is comp#ted /y mostH9Is #si$% the %ross professio$al receipts i$stead of the Net profit as i$ the case ofself4employed $o$4professio$als&

Non/8roessiona%s : 4 The i$come of $o$4professio$als is $ormally calc#lated /y

H9Is i$ the follo*i$% ma$$er: /

Avera%e of the $et profits of last ; years as it appears i$ the profit a$d loss acco#$t1,et#r$s $eed to /e filed for the same& They sho#ld /e filed re%#larly /efore the d#e dateis over2&

Less: / A$y i$come. *hich is #$#s#al a$d $o$4rec#rri$% i$ $at#re li-e sale of some asset.etc *hich affects profits s#/sta$tially.

Add: / A$y e3pe$se that is #$#s#al a$d $o$4rec#rri$% i$ $at#re li-e repairs a$dmai$te$a$ce that has $ot /ee$ capitali?ed a$d effect profit adversely&

Add:4 7< per ce$t of the avera%e depreciatio$ of the last t*o years& The a/ove i$come iscalc#lated for the calc#latio$ of eli%i/ility #si$% II, a$d 9OI, $orms&

9or calc#latio$ of 9OI, the i$stallme$ts of all the loa$s that o$e has availed of c#rre$tlyfor *hich repayme$t is /ei$% made is ta-e$ i$to acco#$t a$d the eli%i/ility is *or-ed o#t&The lo*er of the t*o eli%i/ilities is co$sidered as thema3im#m repayme$t capacity&


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H.i Credit do-u$entation:/

(ive$ /elo* is the e3ha#stive list of credit doc#me$ts4 that $eed to /e s#/mitted for

a %e$eral home loa$ prod#ct& The doc#me$ts vary from o$e H9IJ+ to a$other /ased o$o$eLs employer. )#alificatio$s e3perie$ce etc& the %e$eral re)#ireme$ts are as follo*s: /Ha In-o$e Do-u$ents : 4

9or salaried slips for the last three mo$ths appoi$tme$ts letter4salary certificate4retai$ership a%reeme$t. if appoi$ted as a co$s#lta$t49orm iss#ed /y the employer i$c#stomerLs $ame i$come doc#me$t for self employee 4 last three years profit a$d lossacco#$t stateme$t d#ly attested /y :hartered Acco#$ta$ts& !ast three years +ala$ce Sheetsd#ly attested /y :hartered Acco#$ta$t. last three years I$come Ta3 ,et#r$s *ithcomp#tatio$ chart d#ly filed a$d certified /y the I$come Ta3 a#thorities&

+ 8roo o e$%o*$ent : 4Ide$tify card iss#ed /y the employer4 Kisiti$% card&

H- E$%o*ers detai%s HIn -ase o ri.ate %i$ited -o$anies : /

Profile of employer o$ employers letterhead 1to /e si%$ed /y a se$ior perso$ i$ theor%a$i?atio$2 comprisi$%

Name of promoterJdirectors

+ac-%ro#$d of promotersJdirectors

Nat#re of /#si$ess activity of yo#r employer

N#m/er of employees

!ist of /ra$chesJfactories

!ist of s#ppliers

!ist of clie$tsJc#stomers

T#r$over of employer

A$$#al reports of the employer for the last t*o to three years&

Hd 8roo o age HAn*one o the o%%o0ing : 4

Passport4 KoterLs ID card4PAN card4,atio$ card4mployerLs ide$tity card4Schoolleavi$% certificate4+irth certificate&


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He 8roo o residen-e HAn*one o the o%%o0ing : /

,atio$ card4Passport4 PAN card4,e$t a%reeme$t. if the c#stomer is stayi$%

c#rre$tly o$ re$t4 +a$- Pass /oo-4Allotme$t letter from the compa$y if heJshe is residi$%i$ compa$y )#arters&H 8roo o na$e -hange HI a%i-a+%e : /

A copy of the official %a?ette EA copy of a $e*spaper advertiseme$t p#/lici?i$%the $ame cha$%e4Marria%e certificates&

Hg 8roo i in.est$ent HI reuired :/

+a$- stateme$t for the last si3 mo$ths of all operati$% a$d salary acco#$ts 4

+a$- stateme$ts for the last si3 mo$ths of all c#rre$t acco#$ts. if self4employed4a$y otherphotocopies of i$vestme$ts held. if re)#ired /y the H9:&

H.ii Lega% do-u$entation :/

!e%al Doc#me$tatio$ the typical le%al doc#me$ts that $eed to /e s#/mitted tothe H9: arc disc#ssed here& (ive$ /elo* is a list of le%al property doc#me$ts that $eed to/e s#/mitted to the H9: for mort%a%e of the property& The $ame a$d the list of doc#me$tsvary from state to state a$d also depe$d o$ the type of property /ei$% fi$a$ced& A /roado#tli$e of the doc#me$ts re)#ired is %ive$ /elo*&

aAccepta$ce copy of the offer letter iss#ed /y the H9:J+&

+Title doc#me$ts of the property that i$cl#de 4sale a%reeme$t d#ly

,e%istered4O*$ co$tri/#tio$ receipts 4 Allotme$t letter4,e%istratio$ receipt4!a$ddoc#me$ts i$dicati$% o*$ership. if applica/le4 Possessio$ letter4!ease a%reeme$t. ifapplica/le 1Property /o#%ht from a developme$t a#thority2 4 Mort%a%e deed if the H9:opts for a re%istered mort%a%e&

- No O/jectio$ :ertificate from the developer. society or developme$t a#thority as

applica/le&

d Perso$al (#ara$tees. if applica/le&

e I$ case of alter$ator additio$al sec#rity. doc#me$ts for the same depe$di$% #po$ thesec#rity details&


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Post dated che)#es for the Mls&

The a/ove doc#me$ts are o$ly i$dicative i$ $at#re a$d do $ot cover the e$tire list& It may.also /e $oted that i$ a resale case. the previo#s chai$ of a%reeme$t also $eed to /e ta-e$&H.iii The ta! +eneits that are a%i-a+%e to housing %oans or indi.idua%s :/

:#rre$tly Ta3 +e$efits to i$divid#als are availa/le o$ly for the Home !oa$s a$d Home3te$sio$ !oa$s prod#cts& The /e$efits availa/le are covered #$der these sectio$s&

8roert* Insuran-e :/

Is it -o$u%sor* to insure the roert* some H9ls i$sist o$ a mort%a%e redemptio$ life

i$s#ra$ce policy& I$ this case the c#stomer %ets a /e$efit of a$ i$terest rate red#ctio$&Tho#%h the H9I may $ot i$sist. it is /etter to %o i$ for property i$s#ra$ce to safe%#ard theasset a%ai$st a$y sort of dama%e or loss& The c#stomer ca$ select the te$#re for theproperty i$s#ra$ce& The i$s#ra$ce premi#m is cha$%ed #p fro$t& Most i$s#ra$cecompa$ies provide for h#%e disco#$ts o$ the rate of premi#m for lar%er te$#res& Thepremi#m char%ed c#rre$tly is seve$ty4seve$ for every la-h of property for a year& So ac#stomer has to f#lfill vario#s co$ditio$s to /e eli%i/le for availi$% home loa$ from aHo#si$% 9i$a$ce I$stit#tio$J+a$- After f#lfilli$% these co$ditio$s. a c#stomer ca$ availloa$ at lo* i$terest rate i&e& fi3ed rate floati$% rate& A decisio$ o$ *hether o$e sho#ld %o i$for a fi3ed4rate loa$ or a floati$%4rate loa$ $o* is a f#$ctio$ of t*o factors i&e& O$eLsperceptio$ of *here i$terest rates i$ the eco$omy are headed a$d o$eL capacity to ride the

i$terest rate cha$%es& A floati$%4rate loa$ let o$e ta-e adva$ta%e of f#rther falls i$ i$terestrates /#t o$e sta$d to loose if i$terest rate. rise a%ai$& Ho*ever this decisio$ is /ased o$the perceptio$ of the co$s#mer&


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C7A8TER/;


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C7A8TER/;

O3>ECTI(ES OF STUD)

There is $o stro$%est fo#$datio$ for yo#r dream home. tha$ a cheap loa$& Home loa$shave /ecome that stro$%er fo#$datio$s for people *ho *a$t to o*$ a home& The mai$o/jectives of the st#dy are as follo*s 4

9 The mai$ o/jective of this st#dy is to -$o* the :#stomers perceptio$s a/o#t home

loa$s of HD9: ho#si$% developme$t fi$a$ce corporatio$ !TD&

;;To a$aly?e the history of hdfc ltd&To a$aly?e the history of hdfc ltd&


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To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s&

Kisiti$% the c#stomers a$d closi$% the deal&

9 To lear$ a/o#t vario#s aspect of hdfc home loa$ ltd&To lear$ a/o#t vario#s aspect of hdfc home loa$ ltd&

;&9 8UR8OSE OF T7E STUD)

The mai$ p#rpose of this st#dy is to attai$ the -$o*led%e of the processi$% system ofhome loa$s& the mai$ p#rpose of the st#dy are as follo*s 4

To -$o* the ideas of c#stomers a/o#t home loa$ prod#cts a$d services&

To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s&

To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s&

To lear$ a/o#t vario#s aspect of HD9: home loa$ ltd&To lear$ a/o#t vario#s aspect of HD9: home loa$ ltd&

;&; SCO8E OF STUD)

The I$dia$ ho#si$% fi$a$ce i$d#stry has %ro*$ /y leaps a$d /o#$d i$ fe* years& totalhome loa$s dis/#rseme$ts /y /a$-s has rise$ *hich *it$esses phe$ome$al %ro*th fromlast 7 years& There are %reater $#m/er of /orro*ers of home loa$s& so /y this st#dy *e ca$fi$d o#t satisfactio$ level of c#stomers a$d pro/lems faced /y them i$ o/tai$i$% home&


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C7A8TER /


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C7A8TER/ a fe* years a%o fell /y &7 to B& Fith i$terest rates %oi$% do*$.people i$creasi$%ly $#m/er apply to ta-e these loa$s& Some of the leadi$% /a$-s offeri$%home loa$s i$ I$dia. i$cl#di$% I:I:I +a$-. ID+I +a$-. HD9: +a$- . +a$- of +aroda.S+I. Sta$dard :hartered +a$- a$d A3is +a$- &

B&; 7o$e Loan 8ro-edure in India 4Su+$ission o A%i-ation For$: / After choosi$% a partic#lar home loa$. the c#stomers#/mits the applicatio$ form to the ho#si$% fi$a$ce compa$y 1H9:2 alo$% *ith other

releva$t doc#me$ts as re)#ired /y the H9:& They comprise doc#me$ts to esta/lishi$come. a%e. reside$ce. employme$t. i$vestme$ts. etc& The c#stomer also $eeds to ha$dover a che)#e for payme$t of a$ #p fro$t 1$o$ 4ref#$da/le2 processi$% fee of a/o#t


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8a*$ent 8ro-edure: / O$ce all the a/ove me$tio$ed process. the /orro*er is e$titled tota-e the mo$ey from the le$der party& U$til s#ch time that the e$tire sa$ctio$ed amo#$t is$ot dra*$. the c#stomer is s#pposed to pay a simple i$terest o$ the Act#al Amo#$t dra*$1*itho#t a$y pri$cipal repayme$ts2& The MI payme$ts comme$ces o$ly after the e$tire

sa$ctio$ed loa$ amo#$t is dra*$&

B&


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PN+ Ho#si$% 9i$a$ce

Up to 7 C&


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Some le$ders have prepri$ted forms that set o#t the e3act terms of the loc-4i$a%reeme$t& Others may o$ly ma-e a$ oral loc-4i$ promise o$ the telepho$e or at the timeof applicatio$& Oral a%reeme$ts ca$ /e very diffic#lt to prove i$ the eve$t of a disp#te& It is*ise to o/tai$ *ritte$. rather tha$ ver/al. loc-4i$ a%reeme$ts to ma-e s#re that yo# f#lly#$dersta$d ho* yo#r le$der6s loc-4i$s a$d loa$ commitme$ts *or- a$d to have a ta$%i/le

record of yo#r arra$%eme$ts *ith the le$der& This record may /e #sef#l i$ the eve$t of adisp#te&

Charges o a %o-1/in:/

!e$ders may char%e yo# a fee for loc-i$% i$ the rate of i$terest a$d $#m/er ofpoi$ts for yo#r mort%a%e& Some le$ders may char%e yo# a fee #p4fro$t. a$d may $otref#$d it if yo# *ithdra* yo#r applicatio$. if yo#r credit is de$ied. or if yo# do $ot closethe loa$& Others mi%ht char%e the fee at settleme$t& The fee mi%ht /e a flat fee. aperce$ta%e of the mort%a%e amo#$t. or a fractio$ of a perce$ta%e poi$t added to the rateyo# loc- i$& The amo#$t of the fee a$d ho* it is char%ed *ill vary amo$% le$ders a$d may

depe$d o$ the le$%th of the loc-4i$ period&

T*es o %o-1/in:/

Lo-1ed/In Interest Rate//Lo-1ed/In 8oints :/U$der this optio$. the le$der lets yo#loc- i$ /oth the i$terest rate a$d poi$ts )#oted to yo#& This optio$ may /e co$sidered to /ea tr#e loc-4i$ /eca#se yo#r mort%a%e terms sho#ld $ot i$crease a/ove the i$terest rate a$dpoi$ts that yo#6ve a%reed #po$ eve$ if mar-et co$ditio$s cha$%e&

Lo-1ed/in Interest Rate//F%oating 8oints:/ U$der this optio$. the le$der lets yo# loc- i$the i$terest rate. *hile permitti$% or re)#iri$% the poi$ts to rise a$d fall 1float2 *ith

cha$%es i$ mar-et co$ditio$s& If mar-et i$terest rates drop d#ri$% the loc-4i$ period. thepoi$ts may also fall& If they rise. the poi$ts may i$crease& ve$ if yo# float yo#r poi$ts.yo#r le$der may allo* yo# to loc-4i$ the poi$ts at some time /efore settleme$t at*hatever level is the$ c#rre$t& 19or i$sta$ce. say yo#6ve loc-ed i$ a p&a2 *hich is also drivi$% per capitai$come rise& The dema$d of real estate has reached at a $e* pea- accordi$% to $i$th fiveyear pla$ there is a shorta%e of =;millio$ ho#ses &+#t i$ I$dia the fi%#res to (DP aresmaller i$ compariso$ to the other co#$tries :o$tri/#tio$ of ho#si$% to (DP is close to>& So#rces NH+


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B&= Indian Mar1et or 7o$e %oans is $ore than Rs&B -rore:/Today. $ot o$ly the metros are *it$essi$% the ho#si$% cr#$ch eve$ the seco$d tier citiesli-e4 0aip#r. +h#/$esh*ar. !#c-$o*. Trive$dr#m etc& are falli$% i$to the dearth of livi$%space a$d *a$ti$% for more e3pa$sio$&India Reort:

I$dia$ credit report i$ compariso$ to the other Asia$ co#$tries is sho*$ i$ the statistics/elo*. *hich is amo$% the lo*est& It is I$dia$ psyche that credit is termed /ad. I$dia$ aretraditio$ally $ot i$cli$ed to ta-e credit this reflects i$ the fi%#res /elo*4

GRA87 :/ B&9

B&B Indian ho$e %oans Industr*:/


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I$dia$ Home loa$s i$d#stry is %ro*i$% at a fast pace B


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:ompariso$ *ith other $atio$s I$dia fall /ehi$d i$ terms of Mort%a%e Pe$etratio$ *hichdirectly demo$strates the pote$tial i$ I$dia$ mar-et for Ho#si$% mort%a%e fi$a$cecompa$ies

GRA87:/ B&=

,eal state is c#rre$tly so#%ht of as a %reat mea$s of I$vestme$t. the prices ofreside$ts have shot #p very hi%h *hich is clearly sho*$ i$ the fi%#re /elo*. the majorcities have *it$esses lot of developme$t a$d price appreciatio$ *hich demo$strates the

So#rces ,+I


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%ro*i$% dema$d & more a$d more people are mi%rati$% to cities for *or- J /#si$ess& Morea$d more jo/s are created a$d price i$de3 rise /ecomes i$evita/le&

8ri-e Inde!: FIG/B&B

The a/ove fi%#re sho*s the rise i$ prices of space per s) feet i$ differe$t majorcities&

7ousing shortage in India: /The /elo* fi%#re sho*s the ever4i$creasi$% dema$d forho#ses i$ I$dia a$d also me$tio$ed here is the ,#ral a$d #r/a$ re)#ireme$t& +a$-s aredrivi$% $e* strate%ies to tap /oth the mar-ets i$ a differe$t *ay E ,#ralJUr/a$& There arecate%ories *ith I$dia$ loa$ dema$d. *hich is sho*$ i$ this fi%#re

FIG:/ B&?


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la-h& Most /a$-ers are$Lt *illi$% to co$firm a$y slo*do*$ i$ their home loa$ portfolio&O$ record. they attri/#te the mar%i$al dip i$ home loa$ dis/#rseme$ts to the rece$t hi-e i$i$terest rate&

Privately. ho*ever. they have a differe$t story to tell& The slo*do*$ i$ the homeloa$ mar-et for select players li-e I:I:I +a$- *as evide$t from 0a$#ary& I:I:I +a$-Ls

avera%e home loa$ dis/#rseme$t i$ a mo$th is aro#$d ,s ;.7&;7 per ce$t o$ home loa$s a/ove ,s ; perce$t *hich co$tri/#ted to a property /oom :o$se$s#s isalready /#ildi$% #p for the fact that *e are headed to*ards a lo* i$terest rate re%ime i$ thecomi$% co#ple of years. i$ li$e *ith %lo/al tre$ds& I$ the case of the domestic eco$omy.the tri%%er for lo* i$terest rates has already happe$ed o$ the deposit fro$t *ith /a$-sred#ci$% the rate /y 4; perce$t i$ the last fe* *ee-s& No*. the deposit rate has comedo*$ to si$%le di%it eve$ *ith respect to lo$% term deposits 1o$ B47 years2 a$d that *o#ldmea$ /a$-s have access to cheaper f#$ds& Fith i$flatio$ too slidi$% do*$ at a rapid pace.

there is hope for co$ti$#a$ce of a cheaper rate re%ime& 9ollo*i$% i$ State +a$- of I$dia6s 1S+I6s2 footsteps. other state4r#$ /a$-s may alsocome o#t *ith scheme offeri$% home loa$ at a fi3ed rate of >& The I$dia$ +a$-s6Associatio$ 1I+A2 *o#ld revie* the respo$se of /orro*ers to*ards the S+I scheme afterthree *ee-s a$d if it fi$ds that there has /ee$ a %ood respo$se. other /a$-s *ill follo*s#it&

!ast *ee-. S+I had a$$o#$ced that it *o#ld offer home loa$s at a flat rate of > to all/orro*ers a$d *o#ld free?e this rate for o$e year& The chairma$ of o$e of the major/a$-s. *ho as-ed $ot to /e $amed. said S+I ca$ afford to le$d at s#ch cheap rate as it haso$e of the /est c#rre$t a$d savi$%s acco#$t 1:ASA2 deposit ratio& :ASA deposits are thecheapest so#rce of f#$ds for a /a$- a$d a hi%h :ASA deposit ratio /ri$%s do*$ their

avera%e cost of f#$ds& This i$ t#r$ helps the /a$- i$ offeri$% cheaper credit *hilemai$tai$i$% their $et i$terest mar%i$ 1NIM2& NIM is the differe$ce /et*ee$ the rates at*hich /a$-s /orro* a$d le$d&State4o*$ed /a$-s started c#tti$% their home loa$ rates after co#$tryLs lar%est le$derG State+a$- of I$dia fro?e its $e* home loa$ rates at ei%ht per ce$t for o$e year rece$tly&

7DFC Redu-es 7o$e Loan Rate 3* &B 8er-ent: / Home fi$a$ce major HD9: red#cedhome loa$ rates /y 7< /asis poi$ts for all its e3isti$% floati$% rate c#stomers& HD9: alsosaid that it *ill char%e


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3ter$al repairs

Tili$% a$d floori$%

I$ter$al a$d e3ter$al pai$ti$%

Pl#m/i$% a$d electrical *or-

Faterproofi$% a$d roofi$%

(rills a$d al#mi$#m *i$do*s

Faterproofi$% o$ terrace

:o$str#ctio$ of #$der%ro#$dJoverhead *ater ta$-

Pavi$% of compo#$d *all 1*ith sto$eJtileJetc&2

+ore*ell&

7o$e e!tension %oans:/

A$ e3te$sio$ loa$ is o$e *hich helps yo# to meet the e3pe$ses of a$y alteratio$ tothe e3isti$% /#ildi$% li-e e3te$sio$J modificatio$ of a$ e3isti$% homeG for e3ample

additio$ of a$ e3tra room etc& O$e ca$ avail of s#ch a loa$ facility of a home e3te$sio$loa$. after o/tai$i$% the re)#isite approvals from the releva$t m#$icipal corporatio$&

7o$e -on.ersion %oans:/

This is availa/le for those *ho have fi$a$ced the prese$t home *ith a home loa$a$d *ish to p#rchase a$d move to a$other home for *hich some e3tra f#$ds are re)#ired&Thro#%h a home co$versio$ loa$. the e3isti$% loa$ is tra$sferred to the $e* homei$cl#di$% the e3tra amo#$t re)#ired. elimi$ati$% the $eed for pre4payme$t of the previo#sloa$&

Land ur-hase %oans:/

This loa$ is availa/le for p#rchase of la$d for /oth home co$str#ctio$ ori$vestme$t p#rposes&

Sta$ dut* %oans:/

This loa$ is sa$ctio$ed to pay the stamp d#ty amo#$t that $eeds to /e paid o$ thep#rchase of property&

3ridge %oans:/

+rid%e !oa$s are desi%$ed for people *ho *ish to sell the e3isti$% home a$dp#rchase a$other& The /rid%e loa$ helps fi$a$ce the $e* home. #$til a /#yer is fo#$d forthe old home&

3a%an-e/ transer %oans:/

+ala$ce Tra$sfer is the tra$sfer of the /ala$ce of a$ e3isti$% home loa$ that yo#availed at a hi%her rate of i$terest 1,OI2 to either the same H9: or a$other H9: at thec#rre$t ,OI a lo*er rate of i$terest&
http://www.indianground.com/home_loans/homeloans_faq_indian.aspxhttp://www.indianground.com/home_loans/homeloans_faq_indian.aspxhttp://www.indianground.com/home_loans/homeloans_faq_indian.aspxhttp://www.indianground.com/home_loans/homeloans_faq_indian.aspx


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Reinan-e %oans:/

,efi$a$ce loa$s are ta-e$ i$ case *he$ a loa$ for yo#r ho#se from a H9I at apartic#lar ,OI yo# have ta-e$ drops over the years a$d yo# sta$d to lose& I$ s#ch casesyo# may opt to s*ap yo#r loa$& This co#ld /e do$e from either the same H9I or a$otherH9I at the c#rre$t rates of i$terest. *hich is lo*er&

NRI ho$e %oans:/

This is tailored for the re)#ireme$ts ofNo$4,eside$t I$dia$s*ho *ish to /#ild or/#y a home or property i$ I$dia& The H9:s offer attractive ho#si$% fi$a$ce pla$s forN,Ii$vestors*ith s#ita/le repayme$t optio$s&O$ *o#ld /e e$titled for home loa$s i$ the ra$%e of ,s 7 la-h to a ma3im#m of ,s crore. /ased o$ the repayme$t capacity. previo#s credit history a$d the cost of theproperty& The /a$- may provide a ma3im#m of >7 of the cost of the property or the costof co$str#ctio$ as applica/le a$d @7 of the cost of la$d i$ case of p#rchase of la$d& Therepayme$t capacity is calc#lated ta-i$% i$to acco#$t factors s#ch as

A%e

I$comeJSalary R#alificatio$s

Depe$da$tJ1s2

AssetsJ!ia/ilities

:redit History

Sta/ility J co$ti$#ity of yo#r employme$tJ/#si$ess

I$come of co4applica$tJ1s2

Ta-i$% home loa$s these days has /ecome simpler& Fith the ,+I re%#larly /ri$%do*$ i$terest ratesG ta-i$% home loa$s have /ecome e3tremely easy& Ho#si$% loa$s *hich*ere &7 to > a fe* years a%o fell /y &7 to B& Fith i$terest rates %oi$% do*$.

people i$creasi$%ly $#m/er apply to ta-e these loa$s& Some of the leadi$% /a$-s offeri$%home loa$s i$ I$dia. i$cl#di$% I:I:I +a$-. ID+I +a$-. HD9: +a$- State +a$-. +a$- of+aroda. 'ota- +a$-. S+I. Sta$dard :hartered +a$- a$d A3is +a$-&

B&9 7DFC 7o$e Loan:/

7igh%ights:/

HD9: mar-ets its pare$t HD9:Ls home loa$ prod#cts&

9i$a$ces #p to >7 of the cost of the property 1A%reeme$t val#e Stamp d#ty

,e%istratio$ char%es2&

Home improveme$t loa$. *hich facilitates i$ter$al a$d e3ter$al repairs a$d otherstr#ct#ral improveme$ts li-e pai$ti$%. *aterproofi$%. pl#m/i$% a$d electric *or-s.tili$% a$d floori$%. %rills a$d al#mi$#m *i$do*s& 9i$a$ces #p to >7 of the costof re$ovatio$ 1


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2 LOAN A88LICATION FORM DUL) FILLED 4 It ca$ also /e do*$loaded fromHD9:s #ser frie$dly *e/ /ased portal&

C2 C7ARGES FOR 8ROCESSING FEES :/ This is a sta$dard a$d $omi$al fees to /epaid at the time of applyi$% for loa$

9ees str#ct#re& J4

HD9: ta-es from applica$t *hichever is less& This is applica/le time to time&@ america$ dollars *ill mea$ ;.=.C7 ,#pees&

SELF EM8LO)ED 8ROFESSIONALS 4 A$ N,I applica$t ca$ also /e a Doctor.$%i$eer etc&I$ these cases HD9: *ill p#t them i$ the special cate%ory of Self mployedProfessio$als&Their credit appraisal is carried o#t as follo*s4Their latest availa/le Profit a$d !oss AJc is revie*ed /y the credit appraiser& This acco#$thas t*o sides a Profit side *hich reveals all ear$i$%s a$d %ai$s &There is also a !oss side*hich sho*s all ta3es. lia/ilities a$d losses&

Fe refer to the Profit side a the (ross ,eceipts&These i$cl#des compo$e$ts reveali$% the$at#re a$d amo#$t of the Prime i$come a$d other ear$i$%s % :o$s#ltatio$ fees i$ case ofDoctor &9rom the (ross ,eceipts *e calc#late the (ross Profits a$d thereo$ move to calc#late!oa$ eli%i/ility &Fhich is the loa$ amo#$t that ca$ /e co$ve$ie$tly sa$ctio$ed to theapplica$t&

!oa$ li%i/ility (ross Profit V ;


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A$other importa$t co$sideratio$ is that the A$$#al o#tflo* of MIs sho#ld $ot e3ceed theNT P,O9IT& The Net Profit is comp#ted /y ded#cti$% the vario#s costs a$d losses fromthe (ross profit&

SOURCES OF LOAN A88LICANTS

9 WALK IN :/This refers to the Applica$ts *ho apply for the loa$ /y %oi$% to theservice ce$tre or re%io$al /ra$ch office &They may have come to -$o* a/o#t HD9: shome loa$ service from a$y so#rce /#t this is their first co$tact *ith HD9: is i$ a/se$ceof a$y i$termediary li-e frie$ds. sales me$ etc&The applica$ts *ho co$tact thro#%h or /ythe Fe/site are also i$cl#ded i$ the *al- i$ cate%ory& Fal-4I$ applica$ts are %ive$co$cessio$s o$ fees a$d char%es *hich is applica/le from time to time&

; CALLCENTRE LEADS 4 The callce$tre leads refer to the applica$ts that come i$co$tact *ith HD9: thro#%h HD9: +a$- or thro#%h H!SI! &HD9: /a$- is the /a$-i$%sectio$ of HD9: *hich i$forms HD9: !td a/o#t perso$s *ho it thi$-s to $eedi$% a

loa$ &H!SI! *hich has /ee$ started /y HD9: !td a$d refers to Ho#si$% !oa$ ServicesI$dia !imited&This or%a$i?atio$ has /ee$ especially started /y HD9: to assist perso$s searchi$% forhome loa$s at easy rates a$d %ood service&H!SI! co$tacts pro/a/le $eedf#ls of homeloa$. co$tacts them. e3plai$s them the vario#s adva$ta%es of a$ HD9: home loa$ a$d %ettheir loa$ applicatio$ filled& very HD9: service ce$tre has its o*$ team *hich isma$a%ed /y leader *ho reports diectly to the +ra$ch Ma$a%er &I$ the I$dia ha/itat ce$trethe H!SI! team is #$der the leadership of a team leader *ho reports directly to Mr&Prasha$t Mali-1+ra$ch M%rIH: J,a$-ed ;$d i$ the presti%io#s Natio$al :orporate:halle$%e ;


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HD9: has /ee$ a*arded AAA" rati$% for its deposits from /oth :,ISI! a$d I:,A forthe FOURTEENT7 co$sec#tive year. represe$ti$% hi%hest safety as re%ards timelypayme$t of pri$cipal a$d i$terest&The pro/lem of Ne%ative Amorti?atio$ is specific to the Adj#sta/le or the Karia/le rateloa$s that are le$t to c#stomers& I$ the case of Karia/le rate home loa$s there are three

compo$e$ts4 ,P!, E = 1:U,,NT2

SP,AD E B 1:U,,NT2

,OI4

The term ,P!, is short for ,etail Prime !e$di$% ,ate& this rate is depe$de$t o$ mar-etforces &I$ I$dia the ,P!, has /ee$ o/servi$% a$ #p*ard tre$d &As a res#lt of this there is acha$%e i$ rate of i$terest to /e applied to differe$t loa$s&,P!, is revised every B mo$thsI$ *hich it may or may $ot cha$%e&Spread refers to a special disco#$t offered to loa$ applica$ts comi$% to HD9:&thisdisco#$t is fi3ed /y HD9: &very loa$ applica$t is eli%i/le to receive this disco#$t fromHD9: !td&It helps create a mar-et adva$ta%e a$d /e$efits the Applica$ts&Spread is fi3ed

for a$ #$certai$ le$%th of time &It is a/sol#tely depe$de$t o$ the compa$ys discretio$ tocha$%e it or $ot& :#rre$tly HD9: is offeri$% ;&7 spread o$ a loa$ of a/ove ;< lacs a$dB spread o$ a loa$ of /elo* ;< lacs&,OI is the rate of i$terest that is applica/le to the loa$ at the time of le$di$%& It iscomp#ted /y s#/tracti$% spread disco#$t from the ,P!,& at the time of le$di$% the ,OI is%ood e$o#%h to repay the i$terest as *ell as the pri$cipal compo$e$ts &Ho*ever as the,P!, i$creases as it is /o#$d to do so after some time the re)#ired MI also i$creases&He$ce after some time the MI /ecomes i$s#fficie$t to repay the pri$cipal as *ell as thei$terest compo$e$t &

STAGES OF 7OME LOAN

M#$ir-aHU+

!o%i$ Sca$$i$%

Data$try

,ecomme$datio$Over1,OK,2Do#/le:hec-i$%

Over1D:OK,29i3edchar%es

Dis/#rseme$tof loa$

Applicatio$


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The represe$tatio$ sho*$ a/ove is $ot a perfect copy of the act#al process& This is /eca#sethese sta%es are ta-i$% place sim#lta$eo#sly a$d o$e applicatio$ is /ei$% ta-e$ care for /y

the e3perie$ced employees of /oth HD9: !td service ce$tre a$d HD9: !td HU+ 1alsocalled the /ac- e$d office2&Also the applica$t may /e as-ed to se$d i$formatio$ or may /eas-ed )#estio$s re%ardi$% his re)#ireme$t a$dJor his doc#me$ts for his o*$ co$ve$ie$ceHe$ce the loa$ applicatio$ may or may $ot sh#ttle thro#%h differe$t sta%es&

A88LICATION STAGE 4 This is the sta%e *here the Applicatio$ 9orm first reaches theco$cer$ed Service :e$tre Here all the doc#me$ts i$ the applicatio$ are revie*ed /y thee3perie$ced staff prese$t at the service ce$tre The HD9: !td employee *ho revie*s thefile chec-s to see *hether all doc#me$ts are prese$t a$d i$ their proper place &He chec-s ifthe doc#me$ts are d#ly filled.$ot fa-e.attested /y a#thority i$ )#estio$ a$d prese$t i$order&I$ case a$y doc#me$t is missi$% the applica$t is co$tacted electro$ically or /y mail

&The applica$t is co$tacted /y telepho$e a$d re)#ested for the doc#me$t #$til he de$ies it/ei$% *ith him& This e3ercise is called 9O!!OF UP& the credit appraisal of the loa$applicatio$ starts at this sta%e& The service ce$tre employees comp#te the %ross salary. II,.9OI,. !oa$ li%i/ility ratio etc&The credit *orthi$ess of the applica$t is calc#lated here&

It is also at this sta%e that the RUI:' DATA NT,Y of the loa$ applicatio$ isdo$e to create a serial $o& of the applicatio$& after that a$other pa%e appears a$d more datais e$tered &It is $o* that a special a$d #$i)#e !OAN AJ: NO& is created #$der *hich allthe loa$ processes *ill /e carried o#t& The $#m/er that has /ee$ %e$erated iscomm#$icated to the applica$t /y mea$s of a letter a$dJor electro$ic comm#$icatio$ thesystem of electro$ically recordi$% the data helps to create ready refere$ce. a proof .helpsi$ )#ic- a$d easy processi$% of the data& It also helps to very easily a$d )#ic-ly share data

*ith other employees of HD9:&The $e3t a$d importa$t processi$% performed at the service ce$tre is that offilli$% #p a doc#me$t -$o*$ as the INT,KIF SHT& for processi$% i$divid#al loa$s1salaried cases2 &It co$tai$s vario#s simple e$tries li-e 4& Name of /orro*er;& Name of co4/orro*erB& I$come details49amily /ac-%ro#$d a$d perma$e$t address etc&It also co$tai$s vario#s importa$t e$tries li-e&7& (ross Salary& ,e$tal@& Other i$comes

>& O/li%atio$s 4 The vario#s other loa$s that the applica$t is e$titled to pay .their amo#$t.their remai$i$% terms .so#rce etc&C& ,emar-sG4 This coll#m$ co$tai$s the vario#s fi$di$%s that the employee has fo#$d o#tafter thoro#%h revie* of the applica$ts doc#me$ts s#ch as /a$- stateme$t. salary slip etc&

He$ce the i$tervie* sheet co$tai$s the importa$t fi$di$%s *hich the employee hascollected after caref#l revie* of the vario#s doc#me$ts &The i$tervie* sheet helps to c#t


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cor$ers a$d helps save time /y $ot havi$% other employees to %o thro#%h the doc#me$tsa%ai$ a$d a%ai$ &It he$ce acts as a so#ce of )#ic- refere$ce&

After all this has /ee$ performed *ell e$o#%h the loa$ applicatio$ *ill /e arra$%edi$ a file a$d all it *ill /e %ive$ its loa$ aJc $o *hich also acts as its file $o& the file is $o*ready to /e se$t to the HU+ *here f#rther processi$% *ill ta-e place&

SCANNING: /I$ this sta%e the vario#s importa$t doc#me$ts of the applica$t are sca$$ed&this helps to create their electro$ic copy *hich acts as a ready refere$ce. a proof. a$d ca$also /e shared a$d #tili?ed /y other employees of HD9: !td&DATA ENTR) 4 The file has /ee$ se$t to the /ac- e$d office or the HU+ &At HU+ thereare ma$y e3perts *ith their o*$ speciali?atio$s & these officials revie* the vario#s parts ofthe filae a%ai$ a$d perform ma$y speciali?ed tas-s Data e$try is also o$e of these tas-s&this e$try is m#ch more differe$t a$d comple3 as compared to the earlier performedR#ic- Data $try& A$ e3ha#stive amo#$t a$d type of i$formatio$ has to /e e$tered i$to

the I!PS system ra$%i$% from Perso$al Details. mployme$t Details to Property ,ateHistory a$d :#stomer I$teractio$s&

RECOMMENDATION O(ER HRO(R 4 The ,ecomme$datio$ OK, is also refferedto as the 9irst Appraisal at this sta%e certai$ specially appoi$ted perso$s have /ee$ %ive$the respo$si/ility of recomme$di$% a loa$& These people have to ta-e special care ofrevie*i$% every doc#me$t. a$d all the small details that $eed to /e co$sidered /eforeco$sideri$% the loa$ applicatio$ to /e valid& After this the file is se$t to a$other speciallyappoi$ted perso$ as e3plai$ed /elo*& At this sta%e if a$y correctio$ or mista-e is prese$t itca$ /e se$t /ac- to the Service :e$tre&

DOU3LE C7ECKING O(ER 4 As the $ame s#%%ests at this sta%e a speciallyappoi$ted perso$ *ill do#/le chec- all the past proceedi$%s &He *ill e3ami$e the !oa$ filefor a$y discrepa$cies .a$y missi$% a$d Jor misplaced doc#me$ts.the :redit Appraisalres#lts.etc&this is a very importa$t sta%e a$d m#st /e ha$dled *ith e3ceptio$al care& This is/eca#se a mista-e at this sta%e ca$ ca#se a %reat loss to the compa$y&The Do#/le chec-eris respo$si/le for the #ltimate sa$ctio$i$% of the loa$ &If a$y mista-e is do$e at this sta%ethere is $o %oi$% /ac- a$d he$ce $o protectio$&HD9: ta-es %reat care *hile appoi$ti$%do#/le chec-ers &They sho#ld have completed a select $#m/er of years *ith the compa$ya$d sho#ld have sho*$ e3emplary performa$ce a$d m#st posses e3perie$ce&

SANCTIONING :/ A$ a#thori?ed sa$ctio$i$% a#thority *ithi$ HD9: itself *ill revie*

the remar-s of Do#/le :hec-er a$d Sa$ctio$i$% a#thority &If it co$siders the loa$ s#ita/leto /e Sa$ctio$ed it %ives its approval &After it has %ive$ its approval stamp the I!PSsystem *ill a#tomatically se$d a letter to the Applica$t that his loa$ has /ee$ sa$ctio$ed&After this approval the Applica$t ca$ %o to *hichever Service :e$tre *hich he selects to%et his loa$ dis/#rsed&

S8ECIAL CASE :/ A special case ca$ arise if the applica$t has $ot me$tio$ed theproperty for *hich he *a$ts to ta-e a loa$ &I$ that case the applica$t ca$ let the case /e


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remai$ pe$di$% & this mea$s that the Applica$ts loa$ re)#est *ill /e co$sidered to /ecomplete eve$ tho#%h he has $ot decided the property& Ho*ever the Applica$t is e3pectedto fi$alise the property i$ a short time&

A Property Address is $ecessary to& %et the loa$ dis/#rsed

;& Process the !e%al a$d Tech$ical Appraisal of the property a$d its Papers&

DIS3URSEMENT: / The last a$d fi$al sta%e i$ the Home !oa$ process is that ofdis/#rseme$t& after the sa$ctio$i$% has ta-e$ place the applica$t /ecomes a re%isteredc#stomer of HD9: !td &He ca$ $o* ta-e the dis/#rseme$t of the loa$ from a$y of the vario#s service ce$tre ofHD9: &The loa$ shall /e dis/#rsed i$ o$e !#mp s#m or i$ s#ita/le i$stallme$ts to /edecided /y HD9: *ith refere$ce to the $eed a$dJor pro%ress of co$str#ctio$ 1*hichdecisio$ shall /e fi$al a$d /i$di$% o$ the /orro*er2&The /orro*er here/y ac-$o*led%es

the receipt of the loa$ dis/#rsed as i$dicated i$ the receipt&


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C7A8TER/?


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C7A8TER/?

COM8AN) 8ROFILE

OF

7DFC 7OSING DE(ELO8MENT FINANCE COR8ORATION LTD

INTRODUCTION4

7ousing De.e%o$ent Finan-e Cororation Li$ited . fo#$ded C@@ /y ,aviMa#rya a$d Hasm#-h/hai Pare-h. is a$ I$dia$N+9:. foc#si$% o$ home mort%a%es&HD9:Ls distri/#tio$ $et*or- spa$s ;=B o#tlets that i$cl#de =C offices of HD9:Lsdistri/#tio$ compa$y. HD9: Sales Private !imited& I$ additio$. HD9: covers over C


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KE) E'ECUTI(E 7DFC 7OUSING DE(ELO8MENT FINANCE COR8 LTD :/

Mr& Deea1 S 8are1h: / serves as 3ec#tive :hairma$ a$d :hief 3ec#tive Officer ofthe +oard of Ho#si$% Developme$t 9i$a$ce :orp& !td&. 1HD9:2& He joi$ed HD9:!imited i$ a se$ior ma$a%eme$t positio$ i$ C@>& He *as i$d#cted as a *hole4timedirector of HD9: !imited i$ C>7 a$d *as appoi$ted as its 3ec#tive :hairma$ i$ CCB&He is the :hief 3ec#tive Officer of HD9: !imited& Mr& Pare-h is a 9ello* of the

I$stit#te of :hartered Acco#$ta$ts 1$%la$d 5 Fales2&

Mr& K&$ $istr*: /The Ma$a%i$% Director of the :orporatio$& He has /ee$ employed*ith the :orporatio$ si$ce C> a$d *as the e3ec#tive director of the :orporatio$ si$ceCCB& He *as appoi$ted as the dep#ty ma$a%i$% director i$ CCC a$d the Ma$a%i$%Director i$ ;


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Sta$dard a$d Poor6s& These reflect the efficie$cy *ith *hich HD9: a$d Sta$dard !ifema$a%e their asset /ase of ,s& 7.


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Approvals ;>&C ;7&; B i$fi$a$cial year ;


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HD9: provide loa$s to meet all yo#r re)#ireme$ts for yo# to ma-e that ho#se a home&

7o$e I$ro.e$ent Loan

7o$e E!tension Loan

Loans to roessiona%s or oi-e or -%ini-&

7o$e Euit* Loans HLoan Against 8roert*

Loan against Rent re-ei.a+%es

Short Ter$ 3ridging Loan&

Loans to roessiona%s or non/residentia%s re$ises %oan

Ke* Asso-iates and Su+sidiaries: /These are4

7DFC 3ANK:/

;B&; o*$ed /y HD9:1i$cl#sive of *arra$ts2

Mar-et :ap US /illio$

AD,s listed o$ NYS

I$ 9e/r#ary ; cities. ;.>C< ATMs

Over ; millio$ c#stomer acco#$ts

'ey /#si$ess areas

Fholesale /a$-i$% ,etail /a$-i$% Treas#ry operatio$s

9i$a$cials 1as per I$dia$ (AAP2 for the half year e$ded Sept B


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Stru-ture: / Stro$% a$d sta/le part$ership4

Tie #p *ith Sta$dard !ife Ass#ra$ce :ompa$y. U&'&

HD9: holds @;&; of the e)#ity of HD9:4S!

8rodu-ts: /Diversified prod#ct portfolio coveri$% all life sta%es a$d $eeds4 Offers ;< i$divid#al prod#cts a$d 7 %ro#p pla$s alo$% *ith 7 optio$al riders

Offers > f#$d optio$s *ith mar-et li$-ed prod#cts

8re$iu$ in-o$e and gro0th 4 Kal#es drive$ %ro*th4Total premi#m i$come of ,s& =>&7C /$ for 9Y &7 /$2Greflecti$% a %ro*th of @


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Total assets #$der ma$a%eme$t 1AUM2 as at Septem/er B


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Earnings er share HRs B B

8roit ater Ta! HRs in +i%%ion ;=&


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7DFC 7OME LOAN AD(ANTAGE :/

Home loa$ co#$selli$% shari$% over B< years of home loa$ e3perie$ce

Door step service

Helps i$ fi$di$% Dream home

Fide Prod#ct ,a$%e

M#ltiple ,epayme$t Optio$

Fide Net*or- of fi$a$ci$%

Post dis/#rseme$t service

!oa$ repayme$t optio$


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AWARDS ACCOLADES:/

(oldma$ Sachs has listed HD9: as o$e amo$% top @ fi$a$cial services

or%a$i?atio$ i$ ;


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C7A8TER/@


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C7A8TER/ @

DIS3URSEMENT OF 7OME

LOANS 3) 7DFC 7OUSING DE(ELO8MENT FINANCE

COR8ORATION LIMITED

This chapter co$tai$s res#lts a$d disc#ssio$ o$ dis/#rseme$t of Home loa$s /yHD9: !TD& It is divided i$to t*o parts o$e part is related to the dis/#rseme$t of homeloa$s /y HD9: !TD a$d the seco$d part i$cl#ded the comparative st#dy of dis/#rseme$tof home loa$s made /y commercial /a$-s&

Dis/#rseme$t of Home loa$s /y HD9: !TD4

GRA87/@&9 7DFC: 7ousing %oan sreads:/

;&B7

;&B


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De$and d*na$i-s: :o$s#mer a$d *holesale dema$d e3pected to %ro* >4;


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GRA87/@&&; crore& So it $#t shall there are #p*ardtre$d i$ $#m/er of acco#$tholders a$d dis/#rseme$t of home loa$s&

8un,a+ Nationa% 3an1 4

Years No& of Homeloa$ acco#$t

holders&

Home loa$ Dis/#rsed1i$ crores ,s&2

Distri/#ted ,ecovered +ala$ce

;


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Standard Chartered 3an1 :/

Years No& of Homeloa$

acco#$t

holders



;


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ICICI 3ANK:/

Years No& ofHome

loa$ acco#$t

holders



;


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No& o 7o$e %oan a--ount ho%ders #/

Ta+%e &;Ha

)ears 7DFC LTD 8un,a+Nationa%

3an1

Standard-hartered 3an

ICICI3an1

;


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HD9: !TD

P#$ja/ Natio$al +a$-

Sta$dard :hartered

+a$-

I:I:I +AN'


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Ta+%e& &< H+

Na$e o 3an1 A.erage HRs 8er-entage o ho$e

%oans granted HRs in -rore

HD9: !TD

P#$ja/ Natio$al +a$-

Sta$dard :hartered +a$-

I:I:I +AN'

;


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Home loa$s %ra$ted /y HD9: !TD a$d commercial/a$-s

0

5

10

15

20

25

30

35(0

percentage

of home

loan

granted

HDFC

LD

!"# $C# %C%C%

#&"'

Interretation:/

There is $o do#/t that every /a$- tries to ma3imi?e its home loa$ dis/#rseme$t&+#t o$ the /asis of data it is co$cl#ded that HD9: !TD sho*s hi%h avera%e of loa$ %ra$ts

,s& ;


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Re-o.er* o 7o$e %oans:/

Ta+%e &= Ha

)ears 7DFC

3ANK HRs in

-rore

8un,a+

Nationa%

3an1H Rs in-rore

Standard

-hartered

3an1 HRs in-rore

ICICI 3ANK

HRs in -rore

;


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Total home loa$s recovered

4444444444444444444444444444444444No& of years

Ta+%e &= H+

Na$e o 3an1 A.erage HRs 8er-entage o ho$e%oans re-o.eredH Rs in

-rore

HD9: !TDP#$ja/ Natio$al +a$-Sta$dard :hartered +a$-I:I:I +AN'

>=&&

BCB

Total =@&><


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Home loa$s recovered /y HD9: !TD a$d commercial/a$-s

0

5

10

15

20

25

30

35

(0

percentage

of recover)

HDFC LD !"# $C# %C%C% #&"'

Interretation:/

I$ the previo#s years the recovery process of %ra$ti$% loa$s are very #$or%a$i?eda$d i$efficie$t& So there are less recovery of home loa$s /y the commercial /a$-s& +#t it isevide$t from the ta/le that every /a$- *hether p#/lic or private sho*ed i$crease HD9:!TD has the %reatest recovery of home loa$s i&e& BC. thereafter P#$ja/ $atio$al /a$-recovered the B


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;


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a%e 444444444444444444444444444 3


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C7A8TER/


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C7A8TER/

ANAL)SIS INTER8RETATION

The a$alysis is /ased o$ the respo$ses %ive$ /y c#stomers thro#%h )#estio$$aires&

AGE GROU8 OF SUR(E)ED RES8ONDENTS

TA3LE &9:

Age grou No& o Resondents

9 / ;B *ears 9;@

;? /


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More than ? *ears ?

C7ART/&9:

Ana%*sis:/ 9rom the chart a/ove *e fi$d that =@ of the respo$de$ts fall i$ the a%e %ro#pof > E ;7 years. ;7 fall i$ the a%e %ro#p of ; E B7 years a$d @ fall i$ the a%e %ro#pof B E =C years&Therefore most of the respo$de$ts are relatively yo#$% 1/elo* ; years of a%e2& a$d

respo$de$t6s a%e are 7


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Interretation

9rom the ta/le a$d %raph a/ove it ca$ /e see$ that

@


105/134

Interretation9rom the ta/le a$d %raph a/ove it ca$ /e see$ that

;7 respo$de$t6s are #$der %rad#ate&

= BC

; More tha$ five years ;; Total ;


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Sta*ing *ears in Dehradun

3+,

-1,

less than

five )ears

more

than five)ears

Interretation


BC respo$de$t6s are i$ Dehrad#$ is less tha$ five year6s&

respo$de$t6s are i$ Dehrad#$ is more tha$ five year6s&

CUSTOMER 8ROFILE OF SUR(E)ED RES8ONDENTS

TA3LE &B:

Custo$er roi%e No& o resondents

Student @

7ouse0ie B

Wor1ing 8roessiona% 99?

3usiness =

Se% E$%o*ed ;=

Go.ern$ent ser.i-e e$%o*ee ;=

Chart/&B


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2,

51,

11,

22,

3,11,

student

housewife

wor.ing

professional

*usiness

self/empo)ed

government

service

Interretation

9rom the ta/le a$d %raph a/ove it ca$ /e see$ that47 of the respo$de$ts are *or-i$% professio$als. ;; are i$to /#si$ess a$d areself4employed. of the respo$de$t6s are %over$me$t service employee a$d B of the

respo$de$ts are st#de$t a$d ; of the respo$de$ts are ho#se4*ife&ANNUAL 7OUSE 7OLD INCOME

TA3LE/&?

Sr& No& Categor* No& o Resondents 8er-entage

!ess tha$ ; lacs C> =C

; +et*ee$ ; to 7 lacs ; B

B +et*ee$ 7to >lacs B< 7

= More tha$ > lacs < 7

Total ;


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Interretation


=C respo$de$t6s a$$#al ho#sehold i$come is less tha$ ; lacs&

B respo$de$t6s a$$#al ho#sehold i$come is /et*ee$ ; to 7 lacs&

7 respo$de$t6s a$$#al ho#sehold i$come is /et*ee$ 7 to > lacs&

7 respo$de$t6s a$$#al ho#sehold i$come is more tha$ > lacs&

Do *ou 1no0 a+out 7DFC housing de.e%o$ent inan-e -ororation LTD

TA3LE &@:

Categor* No& o Resondents

Yes =

No

C7ART:/&@


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A0areness a+out 7DFC LTD

+1,

+,

$

"

Interretation:/


C respo$de$t6s are -$o*$ a/o#t HD9: !TD

C respo$de$t6s are $ot -$o*$ a/o#t HD9: !TD

Ta+%e &:/

Reasons or getting the ho$e inan-ed

Sr&No& Nu$+er o Reasons 8er-entage

a& No$4availa/ility of f#$ds B

/& ,el#cta$cy to pay cash i$ o$e %o B7


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c& Ta3 /e$efit ;=

d& A$y other 7

GRA87:/ &

05

10

15

20

25

30

35

(0

percentage of

customers

non/

availa*ilit) of

funds

reluctanc) ta *enefit an) other

Interretation4To i$terpret the respo$se of the )#estio$s. the fi%#res sho*s that most of the

c#stomers fi$d the pro/lem i$ availa/ility of f#$ds i&e& B a$d very less $#m/er ofc#stomers fo#$d pro/lem i$ payi$% cash i$ o$e %o is B7. c#stomers %et ho#si$% loa$ forta3 /e$efits is ;=& This *as the e3pected respo$se /eca#se a lar%e $#m/er of people fi$da pro/lem of availa/ility of f#$ds *hich *or-s as a$ o/stacle i$ o*$i$% a dream home&

I$ todayLs life. people hardly ear$ /oth mea$s a$d e$ds of life a$d they do$Lt havem#ch of mo$ey to /#y a home or a la$d to co$str#ct ho#se /eca#se of cost of property& So.

they ta-e the adva$ta%e of home loa$s provided /y differe$t /a$-s at differe$t termsfeasi/le to the c#stomers& There are very less $#m/er of people. *ho do$Lt o*$ home eve$*he$ they have s#fficie$t f#$ds a$d they ta-e the adva$ta%e of home loa$s /eca#se theydo$Lt *a$t to pay h#%e cash i$ o$e %o&

O$ the /asis of st#dy. it is co$cl#ded that most of people lac- of mo$ey i$ f#lfili$%their dreams a$d fe* of them *ere rel#cta$t to pay cash i$ o$e %o a$d *a$ted to pay theirhome loa$s slo*ly i$ i$stallme$ts&


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Ta+%e/&

Fro$ 0here *ou ha.e got *our ho$e inan-ed

Na$e o 3an1s 5 -o$an* 8er-entage o -usto$ers

HD9: !TD 77

P#$ja/ Natio$al +a$- 7

Sta$dard :hartered +a$-


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9rom *here yo# have %ot yo#r home fi$a$ced

0

10

20

30

(0

50

-0

percentage of

customers

HDFC

LD

!"# $C# %C%C%

#&"'

an)

other

Interretation:/

The a$alysis sho*ed that a lar%e $#m/er of c#stomers prefer HD9: !TD ascompared to others& The data sho*s that @ of c#stomers too- loa$ from Sta$dard:hartered +a$-. ;


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Sour-es o inor$ation 8er-entage o -usto$ers

Ne*spapers =C

Ma%a?i$es

+a$$ersJHoardi$%sJPamphlets

Ford of mo#th ;2 The compa$y has to red#ce their i$terest rates o$ home loa$ prod#cts a$dservices&

C2 The compa$y has to ide$tify the pote$tial c#stomers&


125/134

C7A8TER/9;


126/134


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2 I$ my st#dy *e came to -$o* that ma$y peoples are i$terested to ta-e a home loa$

from HD9: !TD to co$str#ct their homes&

;2 Home loa$s have lo$% period *he$ compare to other perso$al loa$s a$d other loa$s& So

peoples are co$f#sed to ta-e a home loa$&

B2 ve$ tho#%h the i$terest rates are hi%h peoples are *illi$% to ta-e a loa$ from HD9:

!TD d#e to some reaso$s&

=2 The i$terest rates also some *hat hi%h *he$ compare to other /a$-s

72 The loa$ sa$ctio$ process is lo* *he$ compare to other /a$-s&

2 9or dis/#rseme$t process is also it *ill ta-e lo* time *he$ compare to other /a$-s

9i$ally the *hole research *as carried o#t i$ a systematic *ay to reach at e3actres#lts& The *hole research a$d fi$di$%s *ere /ased o$ the o/jectives& Ho*ever. the st#dyhad some limitatio$s also s#ch as lac- of time. lac- of data. $o$4respo$se. rel#cta$t

attit#de a$d illiteracy of respo$de$ts. *hich posed pro/lems i$ carryi$% o#t the research&+#t proper atte$tio$ *as made to :arry o#t research i$ proper *ay a$d to ma-e acc#rateco$cl#sio$ for the HD9: !TD *hich may /e$eficial for /a$-s to e$ha$ce their c#stomer/ase&


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3I3LIOGRA87)

REFERENCESRE(IEWS


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+erstai$ David1;;2. The Dema$d for Home Mort%a%e De/t" 0o#r$al of Ur/a$co$omics. Kol No ;. Novem/er. pp& @@B2. loo-i$% a fresh at /a$-i$% prod#ctivity". 0o#r$al of ,eal state!iterat#re. Kol& No& B. Pa%e = to =&

Haavio. 'a#ppi1;


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JUESTIONNAIRE


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Hi%hly dissatisfied Ne#tral satisfied hi%hlydissatisfied dissatisfied

>& Fhile ta-i$% loa$. *hich thi$%s attract yo# the most 1a2 I$terest rates 1/2 Service Provided 1c2 Pay /ac- period 1d2 Schemes 1d2 Others

C& ve$ if the I$terest rate is hi%h for the perso$al loa$s. yo# *ill %o for it 1a2 Yes 1/2 No


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19443643 a Study on Home Loans Rajni Mba3rd Sem Financecolrdias Delhi

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Transcript of 19443643 a Study on Home Loans Rajni Mba3rd Sem Financecolrdias Delhi