VIRTUAL SHAPING DREAMS TO REALITYPRESENTED BY SUREKHA ROY

VIRTUAL REALTY SOLUTION PVT. LTDVirtual Realty is real estate solution provider operating from Bangalore city. It has head office located in Kolkata operating since last ten years. Virtual is headed by Directors Mrs. Sukanya Kumar and Mr. Suresh Kumar. Virtual predominantly deals with realty service and home loan service.

VIRTUAL DEALS WITH

Home Loan Service Realty Service Outsourcing( Home loan & Realty) Tie up with banks Allied services (consultation, deal mediation, legal venting, documentation, arbitration, background checking, valuation, property search report, property management, representation office).

VIRTUAL SHAPING DREAMS TO REALITY

The Home loan sector in India is the pivotal role player in the

growth of the real estate scenario in India. Real estate and Home loan sector makes up for a huge market in The silicon city Bangalore. An intensive study of the Bangalore Home loan market and Realty sector is being done in the project Virtual shaping dreams to realty in the company Virtual Realty.

The project VIRTUAL SHAPING DREAMS TO REALITY

involved helping commoner to chase his dream and gives a shape to his dream by offering him home loan and realty service meeting his requirement and finally helps to materialize his dreams into reality.

The stages of the project involved data collection, tele calling and appointment fixing appointment with clients for counseling for

home loans documentation and loan sanctioning assisting in purchase, sale, renting, leasing of commercial space and residential.

Home loan & Virtual Realty Virtual Realty having experience of a decade,

provides complete solutions in home loan by way of: Co-ordination with chosen bank for loan sanction Co-ordination for documentation & speedy disbursal of loan Co-ordination with builders for agreement, execution & registration Virtual Realty has tied up with different financial institutions & gives the freedom to choose

Banks with which Virtual is tied up are:HDFC Bank CITI Bank ING Vysya IDBI Bank Deutsche Bank Axis Bank Standard Chartered Bank Kotak Mahindra Bank HSBC

Home loan to whom

Salaried Self- employed Self employed non- professional (SENP)

Loan Repayment

Loan Repayment takes into account 3 important things Rate of interest Tenure EMI

The Rate of interest vary bank to bank depending on the different offers.

There are 3 types of rate of interests Floating Semi fixed Fixed

Eligibility Criterion First the profession of the individual is considered if he is salaried,

self employed or Self- employed non- professional.

Then comes the age. The max age for

Salaried individual is 60years or retirement age, whichever is less. The maximum tenure for loan repayment is 20years. For self employed is 65 years and the tenure for repayment is maximum 15years For SENP the maximum age is 65 years and the maximum tenure of repayment is 15years

Eligibility Calculation

First the length of the service is taken into account and the max. period for which he can be given loan is decided Then the average gross salary of last 3 months is considered. Fixed obligations of the individual like ESI, Income tax, other loans are taken into account. PF advance if less then 12 installments are left then it is not considered as a fixed obligation. Then the fixed obligations deducted from the gross salary gives the net salary Then the net salary multiplied by the FOIR (generally 65% 0f the monthly income) and divided by EMI per lakhs gives the eligibility. Net salary FOIR EMI/lakhs = ELIGIBILITY

(Net salary FOIR) - OBLIGATIONS EMI/ lakhs = ELIGIBILITY

Meeting the eligibility requirement, bank verification takes

place. The individual is accessed on his profile, existence and past records.(Credit card payment, bank statement, defaulters etc.) There are certain areas, companies and profiles to whom willingness to offer a home loan is very low: Negative locations, Negative Profiles ,Negative Company. Once the bank is satisfied with the suitability of the individual it sanctions the loan. The loan once sanctioned, the bank asks for property papers and goes through a legal check and a technical survey

Legal & Technical Check In the legal check the bank checks the documents

needed.

Income documents KYC documents Legal documents

In the technical survey, property valuation is done

where the bank appoints a valuer who estimates the total worth of the property. Banks fund up to 85-90% of the total property value. Finally disbursement occurs where the bank pays the required amount to the individual in number of installments.

Major Players in Bangalore RealtyPrestige GroupMantri Developers Puravankara Sobha Developers Chaithanya Projects Vaswani Group Divyasree Group SJR Group Nitesh Estates Vaishnavi Infrastructure Salarpuria Group Golden Gate Properties Ltd. Brigade Group Ozone Group

Realty services & Virtual RealtyResidential Purchase and sale of apartment/

Commercial Purchase of commercials/

penthouse/ row house/ villa Builder purchase/ assignment sale/ second sale purchase Builder evaluation and past accomplishment Market analysis and advice on investment Paper work and agreement execution with builder/ seller Renting in and renting out of apartment/ villa/ service apartments

retail space

Leasing of commercials/ retail space Property evaluation and structural certification through outsourced professionals Legal document persuasion and clearance through outsourced professionals

Realty Service is offered by Virtual in the following manner Listing of properties from different sources like builders, resale

properties, secondary sources like news paper advertisements, promotional activities, data purchased from different agencies etc

Appointment fixing with the seller by tele calling and the sign of the

consent form stating a brokerage of 2% and 10.23% service tax on the brokerage to be given to virtual

Appointment fixing with the buyer by telle calling and sign of enquiry form stating a brokerage of 1% for fresh property from the builder and 2% for a resale property and 10.23% service tax on the brokerage.

Then the client is taken for site visit where he is shown the property

and a site visit form is signed by him.

Finally if the property is liked by the buyer and the seller agrees to it

and they arrive at a consensus price the deal is completed and home loan is offered to the buyer.

Relationship value in VirtualVirtual maintains a good and healthy relation with the builders, banks, clients and realtors. Virtual believes an existing client can benefit and be profitable to it more than the a new clients as they can generate new business to them.

For NRIs/ HNI clients, property management, new property purchase, renting and leasing a healthy relation which would be fruitful in future. A good rapport is maintained with the builders who could provide them leads of prospective clients for both realty and home loans. A healthy relationship with the bank ensures a better rate of interest being offered to virtual compared to the one prevailing in the market, as virtual helps banks to accomplish 25%-35% of its sales targets every month.

Virtual also believes that a satisfied employee can be well productive for the company, so it tries to motivate its employees with timely incentives, gifts, appraisals, sponsoring foreign tours, etc.

ME @ VIRTUAL REALTY Training on different aspects of Home loan & Realty. A site visit in and around Bangalore enabled us to see some

of the most expensive and lucrative projects both ongoing and completed in the city. These helped us to make contacts with the key members of the project. Conducted promotion for the company in different IT parks like SJR IT PARK housing around 10- 15 IT companies and RMZ Titanium. We also promoted the company in a Realty Expo held in Lalit Ashoke a five star hotel.These included included distributing leaflets, gathering leads of the prospective clients, and making people know about the company and its various services.

Contd ..

My SIP in Virtual realty was divided into three different levels and we were divided in a group of two each. In the first level i.e in the first 15 days I was assigned the job of tele calling. The tele calling process involved calling up the data base obtained from different sources and offering them either home loan and realty service. Further appointments are fixed with the interested individuals where they are counseled by the sales managers. The tele calling process also enabled further leads from the existing clients through recommendation. In the second level i.e in the next 15 days I was assigned the job of lead collection. The job involved travelling to different builders site and upcoming projects in and around the city for collecting leads of the prospective clients for offering home loan and realty service. Finally in the last 15 days we were suppose to accompany our senior sales manager for client servicing. Eventually once we were knowledgeable and equipped about the different offers of home loan and realty we individually started visiting clients for counseling and servicing home loans.

Sample survey on Bangalore s home loan market

An intensive study of the Bangalore Home loan market and

Realty sector is being done in the project Virtual shaping dreams to realty . A Sample of 100 people from the leading IT companies in the CBDs like Embassy golf link, ITPL etc were surveyed . Statistical tools like questionnaire were used to record their views and responses for a particular set of questions. Important and meaningful interpretation from the findings of the questionnaire finally helped to visualize a particular scenario of the home loan and the realty market in Bangalore. The study also helped to understand the customers actual need and preferences for home loan service which in turn helped the company to shape up its service accordingly meeting the customer s needs.

INTERPRETATION FROM THE QUESTIONNAIREThe findings from the questionnaire revealed that:

The survey consist of respondents mostly in the age group of (35- 45) years. i.e 58% of the sample. While (25- 35)years makes up 32% of the sample and 10% of the sample have respondents above the age of 50 years A majority of the people i.e 87% of the sample would prefer availing a home loan for purchasing a property while the rest 15% does not prefer going for a home loan. The survey shows a majority of the people even though having the purchasing power wants the bank to finance them for a purchasing a home. People in the MNCs and IT companies forming 56% of the sample mostly preferred MNC banks as they are best in service which the nationalized banks lack. But still 23% and17% of the sample considers going with a nationalized and public sector bank respectively. They feel nationalized banks are more trustworthy comparative to any other banks

People in the age group (25- 40 )years preferred possessing a 2 or a 3 BHK , they would not go for a villa or penthouse even if have the capacity while the people above the age of 50 having a high purchasing power preferred a penthouse or a villa. Salaried professionals forming 73% of the sample mostly prefer going for a home loan. followed by SEP and SENP. 44% of sample mostly preferred a semi fixed rate of interest, followed by floating rate of interest by 36% of the sample. The youth prefers a low own contribution for purchasing a house even if he has the capacity they wants the bank to finance him. A high percentage of 86% of the sample wants maximum financing from the bank and wants their own contribution to be low.

Thank you