HOUSING FINANCE

By :

Mayuri jadav 1144

Minaxi solanki 1125

INTRODUCTION

In pursuance of National Housing Policy of Central

Government, Reserve Bank of India has been

facilitating the flow of credit to housing sector.

During last three years, the housing sector has

emerged as one of the sectors attracting a large

quantum of bank finance. The current focus of

RBI's regulation is to ensure orderly growth of

housing loan portfolio of banks.

OBJECTIVE OF STUDY

To get knowledge about “Indian Housing finance

such as operation perform by banks, Different type

of bank product, Services”

To understand current scenario of the “Indian

Housing Finance”

To make comparative analysis of SBI, LIC (public

sector) and HDFC (private sector) banks.

DIRECT HOUSING FINANCE

Direct Housing Finance refers to the finance provided to individuals or groups of individuals including co-operative societies.

INDIRECT HOUSING FINANCE

Banks should ensure that their indirect housing finance is by way of term loans to housing finance institutions, housing boards, other public housing agencies, etc

HOUSING LOANS UNDER PRIORITY

SECTOR

The following housing finance limits will be

considered as Priority Sector Advances:

1. Direct Finance

(i) Loans up to Rs. 15 lakh in rural, semi-urban,

urban and metropolitan areas for construction of

houses by individuals, with the approval of their

Boards.

(ii) Loans up to Rs.1 lakh in rural and semi urban

areas and Rs. 2 lakhs in urban areas for repairs to

damaged houses by individuals.

2 INDIRECT FINANCE

(i) Assistance given to any governmental agency for

construction of houses, or for slum clearance and

rehabilitation of slum dwellers, subject to a ceiling

of Rs. 5 lakh of loan amount per housing unit.

(ii) Assistance given to a non-governmental agency

approved by the National Housing Bank for the

purpose of refinance for reconstruction of houses or

for slum clearance and rehabilitation of slum

dwellers, subject to a ceiling of Rs. 5 lakh of loan

amount per housing unit.

GROWTH OF HOUSING FINANCE

Earlier marketing scenario

• Walk-in customers

• Passive marketing, belief that word of mouth from

a satisfied customer was the best form of

advertising

Current marketing scenario

With increased competition, buyers’ became more

demanding

Customers want door-step service

Use of direct selling agents (third party distribution

channels)

Captive distribution company

Property fairs and exhibitions

Cross selling products and services

STUDY ON HDFC, LIC HOUSING FINANCE

AND SBI HOME FINANCE

Housing Development Finance Corporation

Limited (HDFC)

HDFC is one of the leaders in the Indian housing

finance market with almost 17% market share as on

March 2010.

Serving more than 38 lakh Indian customers as on

March 2011

In the FY 2010-11, it registered a net profit of

`4528.41 crore. It also registered a net profit of `

971 crore in the quarter ended September 30,

2011.

STATE BANK OF INDIA HOME FINANCE (SBI)

State Bank of India is another major player in the

Indian housing finance market with 17% of the

market share, same as HDFC's share as on March

2010.

The SBI Housing Loan schemes are specifically

designed to meet the varied requirements of the

customers.

SBI Home Finance registered a net profit of ` 24.63

crore in the year ended March 31, 2009.

LIC HOUSING FINANCE LIMITED

LIC Housing Finance is another major player in housing

finance sector in India with about 8% of market share.

Promoted by Life Insurance Corporation of India,

LICHFL has an extensive distribution network with a

strong brand presence. Recently, the company has been

awarded “Consumer Superbrand 2009/10 Status” by

Superbrands Council. In the last financial year (ended

on March 31, 2011),

LICHFL earned a net profit of ` 974.49 crore, comparing

to ` 662.18 in the previous FY.

It also registered a net profit of ` 256.50 crore in April-

June quarter of 2011.

HDFC HOUSING FINANCE SERVICES

Home Loan

Home Improvement Loan

Home Extension Loans

Land Purchase Loans

Top – Up Loans

LIC HOUSING FINANCE SERVICES

Purchase of flats/house

Construction

Extension of flats/house

Plot purchase

Repairs/renovation to existing flats/house

SBI HOUSING FINANCE SERVICES

SBI Surakshit Home Loan

SBI Yuva Home Loan

SBI Home Loan PAL ( Pre-Approved Limit )

SBI Maxgain (Home Loan as an overdraft)

SBI Realty

NRI Home Loans

Gram Niwas

CONCLUSION

From the above study we conclude that the net

profit of HDFC is higher than SBI and LIC housing

finance. SBI provides more services and less

interest rate compare to HDFC and LIC housing

finance.

Thank you