Download - Summer Training Proect on Comparison of Home Loan Scheme of Different Banks.docx

8/16/2019 Summer Training Proect on Comparison of Home Loan Scheme of Different Banks.docx

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A

SUMMER TRAININGREPORT

ON

“COMPARISON OF HOME LOAN SCHEMEOF DIFFERENT BANKS”

SUBMITTED TO

SUPERVISOR NAME

SUBMITTED BY

YOUR NAME

COURSE

COLLEGE


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ACKNOWLEDGEMENT

Perfect is the fa!"s sa#i$% a$& 'he$ a (ers!$ %et (ractica) e*(erie$ce "$&er the %"i&a$ce

!f e*(ert !f the res(ecti+e fie)&, the -$!')e&%e %ai$e& is (rice)ess.

/ith the se$se !f %reat ()eas"re a$& satisfacti!$, I (rese$t this (r!0ect re(!rt e$tit)e&

“COMPARISON OF HOME LOAN SCHEME OF DIFFERENT BANKS” c!()eti$% a tas-

s"ccessf"))# is $e+er a a$ eff!rts sii)ar)# c!()eti!$ !f this re(!rt is the res")t !f

i$+a)"a1)e s"((!rt a$& c!$tri1"ti!$ !f $"1er !f the (e!()es i$ &irect a$& i$&irect a$$er.

I$ the )i%ht !f f!re%!i$%, first !f a)) # heartfe)t %reat f"))$ess a$& tha$-s %!es t! Mr. SUMIT

SURI as a MANAGER !f HDFC LIMITED f!r %i+i$% !((!rt"$it# t! '!r- f!r his hi%h)#

esteee& !r%a$i2ati!$ a$& f!r 1ei$% a c!$sta$t s!"rce !f i$s(irati!$ a$& %"i&a$ce thr!"%h!"t

the (r!0ect. /ith!"t his a1)e s"((!rt the (r!0ect '!")& $!t ha+e see$ the )i%ht !f the &a#.

At this 0"$ct"re, I '!")& a)s! )i-e t! tha$- a)) the !ther tea e1ers !f the HDFC

LIMITED. /ith!"t their i$&is(e$sa1)e c!!(erati!$, the (r!0ect '!$3t ha+e 1ee$ c!()ete&

'ithi$ the sti(")ate& tie (eri!&. Fi$a))# I '!")& )i-e t! tha$- the staff !f !ther h!e )!a$

(r!+i&er 1a$-s, 'ith!"t 'h!se c!!(erati!$ i$ (r!+i&i$% the &ata f!r the (r!0ect '!")& ha+e

1ee$ i(!ssi1)e.


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PREFACE

M!&er$ !r%a$i2ati!$s are hi%h)# c!()e* a& $aics s#stes. The# !(erate "$&er +er#

t"r1")e$t s!cia) ec!$!ic a$& (!)itica) e$+ir!$e$t. The# are re4"ire& t! rec!$ci)e se+era)

i$c!(ati1)e %!a)s. C!$f)icti$% r!)es a$& &i+er%e$t i$terest the# are a)s! fra"%ht 'ith the "se

ris- a$& "$certai$ties, he$ce tactf") a$a%ee$t !f s"ch !r%a$i2ati!$ t! ()a$ t! e*ec"te

%"i&e, c!!r&i$ati!$ a$& c!$tr!) the (erf!ra$ce !f (e!()e t! achie+e (re&eteri$e& %!a)s.

Ma$a%ee$t has t! -ee( the !r%a$i2ati!$ +i1ra$t !+i$% a$& i$ e4"i)i1ri". It has t!

achie+e %!a) 'hich these)+es are cha$%i$% it is theref!re a (r!1)e hi%h)# c!()e* a$&

tic-)ish.

This i$f!rati!$ 'i)) 1e asset t! ar-eti$% a$a%er i$ a-i$% effecti+e &ecisi!$s. The

researches are "se& t! ac4"ire a$& a$a)#2e i$f!rati!$ a$& t! a-e s"%%esti!$s t!

a$a%ee$t as t! h!' ar-eti$% (r!1)es sh!")& 1e s!)+e&.

The ar-eti$% research is the (r!cess 'hich )i$-s t! a$"fact"rer, &ea)ers a$& i$&i+i&"a)s

thr!"%h i$f!rati!$ i$ i(!rta$t (art !f c"rric")" !f M.B.A. (r!%rae is (r!0ect ta-e$

1# the st"&e$ts t! i$stit"te "$&er 'hich he !r she is st"i$%, after c!()eti!$ !f thir&

seester !f the (r!%rae.

The !10ecti+e !f this (r!0ect is t! e$a1)e the st"&e$ts t! "$&ersta$& the a(()icati!$ !f the

aca&eics i$ the rea) 1"si$ess )ife. I a f"))# c!$fi&e$t that this (r!0ect re(!rt 'i)) 1e

e*tree)# "sef") t! the a$a%ee$t.


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INTRODUCTION

The r!!f !+er !$e3s hea& a$& %r!"$& 1e$eath !$e3s feet c!"$t as the 1are $ecessities !f )ife.

There3s $!thi$% 4"ite )i-e !'i$% a h!e, h!'e+er h"1)e t! %i+e that 'ar a$& %)!'i$%

fee)i$%. B"t 'he$ !$e 1"#s a h!e, !$e has "ch !re tha$ a fee) %!!& ("rchase i$ i$&5

It3s a)s! a cr"cia) i$+este$t &ecisi!$, (erha(s the 1i%%est s(e$&i$% &ecisi!$ !f !$e3s )ife.

There are a()e !((!rt"$ities t!&a# f!r #!"$% sa)arie& i$+est!rs t! ()a$ their !+es ear)#

a$& 1"# a h!"se at ri%ht tie6 a$& at ri%ht (rice. I$ the (r!cess, $!t !$)# &! the# f")fi)) thatcherishe& &rea !f !'i$% a h!"se, 1"t a)s! ("t these)+es !$ the (ath t! ac4"iri$% (r!(ert#

that '!")& eet the $ee&s a$& as(irati!$s !f their %r!'i$% fai)#, e+e$ as it )ea&s t! 'ea)th

creati!$. E+er# i$&i+i&"a) as(ires t! !'$ a h!e. B"t a$# either s(e$& a )ifetie sa+i$% t!

("rchase a h!"se !r e*ha"st !$e# !$ !$th)# h!"se re$ts.

Take a house loan an le! !he "on!hl# $en! %eas&l# 'on(e$!e &n!o a))o$a*le EMI+s,

*u&l $ea" ho"e-


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OB.ECTIVE OF T/E STUDY7

The ai$ !10ecti+e !f the st" is t! fi$& !"t the tariff cha$%es char%es 1# !ther 1a$-s i$

c!(aris!$ t! HDFC 1a$-.

The ai !f the st" is t! he)( HDFC t! -$!' 'here it )ac-s i$ )!a$s a$& h!' f!r the

(erf!ra$ce !f !ther 1a$-s is 1etter s! that HDFC fi%"re !"t the c!!$ (r!1)es

1ei$% face& 1# the c"st!ers 'hi)e &ea)i$% i$ the )!a$ &e(arte$t s! that f"rther

HDFC ca$ i(r!+e its ser+ices a$& schees !ffere& 1# the t! their c"st!ers.

PROFITABLE PROPOSITION

“The !+era)) &ea$& i$ resi&e$tia) sect!r has %r!'$ 1# a1!"t 869: i$ the (ast fe' !$ths as

c!(are& t! the sae (eri!& )ast #ear. The %r!'th is !$ acc!"$t !f t'! ai$ fact!rs7

✓ O$e, i$c!e ta* e*e(ti!$.

✓ T'!, 'ith $! sii)ar re1ates a+ai)a1)e f!r i$&i+i&"a)s i$ the

hi%h i$c!e %r!"(, the# are creati$% a sec!$& asset.

A&& t! this the sta1)e (r!(ert# (rices !+er the )ast #ear a$& ()"$%i$% i$terest rates, ()a$$i$%

f!r &rea,; h!e c!")& $!t ha+e 1ee$ 1etter tie&. R!c-61!tt! i$terest rates,

sta$&ar&i2ati!$ !f (eri!&icit# !f i$terest ca)c")ati!$ acr!ss )e$&ers : +er# rece$t)#, t! (artici(ate

i$ the i$terest rate 'ar. If !$e is sti)) $!t satisfie& 'ith the )!'ere& )!a$ rates there3s !re.

S!e i$&"str# 'atchers 1e)ie+e that the f)!ati$% h!e )!a$ rate 'i)) s)i( t! 9: f!r )!$% ter

)!a$s a$!ther t'! !r three #ears.

M!st 1a$-s ha+e cha$%e& the 'a# the i$terest is ca)c")ate& fr! a$$"a) rest t! !$th)# rests.

U$&er the a$$"a) rest eth!&, the EMI3s


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A h!e )!a$ is +er# &iffere$t fr! a (ers!$a) )!a$ )i-e a car )!a$ f!r i$sta$ce. !" ca$

"ti)i2e a h!e )!a$ f!r fi$a$ci$% a$ asset that 'i)) h!)& its +a)"e a$& e+e$ a((reciate !+er the

(eri!& !f the )!a$. Th!"%h its (rice c!")& f)"ct"ate i$ the sh!rt ters, T!ta) Estate 'i)) sh!'

ca(ita) a((reciati!$ !+er the #ears. The +a)"e !f #!"r h!"se %e$era))# 'hi)e the )!a$ reai$s

c!$sta$t. If #!" ha& !(te& t! 'ait, sa+e "( a$& 1"# a h!"se, it '!")&, i$ the )!$% r"$ c!st #!"

"ch !re h!e )!a$s a)s! c!e 'ith a$# ta* 1e$efits.

Ta5 *ene)&!s o) !ak&n4 a ho"e loan3

The i$c!e ta* a"th!rities )!!- 'ith fa+!r "(!$ th!se ser+ici$% a h!"si$% )!a$ fr!

s(ecifie& fi$a$cia) i$stit"ti!$s. A$&, it is "( t! #!" t! 1e 'ise e$!"%h t! ta-e a&+a$ta%e !f

this.

Se'!&on 67 o) !he In'o"e Ta53

I$terest !$ )!a$ ti)) Rs.?.> )a-hs (er a$$" is e*e(te& f!r i$c!e ta*


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re(a#i$% #!"r )!a$. Bei$% a !$th)# (a#e$t, at the e$& !f the #ear, #!" '!")& ha+e (ai& ?

EMIs.

TYPES OF LOANS AVAILABLE

Br!a&)# t'! t#(es6 fi*e& rate a$& +aria1)e rate )!a$s 'hi)e the f!rer &ea)s 'ith a fi*e&

rate !f i$terest !+er the e$tire &"rati!$ !f the )!a$, the )atter has the rate !f i$terest cha$%i$%

acc!r&i$% t! the f)"ct"ati!$s i$ the ar-et.

LOAN T/AT ONE CAN AVAIL

U( t! 9>6: !f the t!ta) c!st 1ase& (riari)# "(!$ the i$&i+i&"a)3s (a#1ac- ca(acit#.

GENERAL CONDITIONS T/AT GOVERN A /OME LOAN3

These are )i-e)# t! +ar# 'ith res(ect t! the &iffere$t t#(es !f h!"si$% )!a$s7

✓ The a*i" (eri!& !f the )!a$ is $!ra))# fi*e& 1# HFIs. H!'e+er, HFIs

&! (r!+i&e f!r &iffere$t te$!rs 'ith &iffere$t ters a$& c!$&iti!$s.

✓ The I$sta))e$t that #!" (a# is $!ra))# restricte& t! a!"$t @>: !f #!"r

!$th)# %r!ss i$c!e.✓ !" 'i)) 1e e)i%i1)e f!r a )!a$ a!"$t, 'hich is the )!'est as (er #!"r

e)i%i1i)it#. This is ca)c")ate& !$ the 1asis !f #!"r %r!ss i$c!e a$& (a#1ac-

ca(a1i)ities.

✓ S!e HFIs i$sist !$ %"ara$tees fr! !ther i$&i+i&"a)s f!r &"e re(a#e$t !f

#!"r )!a$. I$ s"ch cases #!" ha+e t! arra$%e f!r the (ers!$a) %"ara$tee 1ef!re the

&is1"rsee$t !f #!"r )!a$ tas-s ()ace.

✓ M!st HFIs ha+e a (a$e) !f )a'#ers 'h! %! thr!"%h #!"r (r!(ert# &!c"e$ts

t! e$s"re that the &!c"e$ts are c)ear a$& are $!t isre(rese$te&. This is a$ a&&e&

1e$efit that #!" %et 'he$ #!" a+ai) !f a )!a$ fr! a$ HFI.

✓ !" re(a# the )!a$ either thr!"%h De&"cti!$ a%ai$st Sa)ar#, P!st &ate&

che4"es, a$& sta$&i$% i$str"cti!$s !r 1# CashDD.

W/AT ALL ONE CAN TAKE T/E LOAN FOR0

There are &iffere$t t#(es !f h!e )!a$ tai)!re& t! eet !$es $ee&s here3s a)) s!e !f the.

✓ /o"e 1u$'hase loan7 This is the 1asic h!e )!a$ f!r the ("rchase !f $e'

h!e.

✓ /o"e &"1$o(e"en! loans7 These )!a$s are %i+e$ f!r i()ee$tati!$ re(air '!r-s J re$!+ati!$ i$ a h!e that has a)rea 1ee$ ("rchase& 1# the c)ie$t.


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✓ /o"e 'ons!$u'!&on loan7 This is a+ai)a1)e f!r the c!$str"cti!$ !f $e' h!e.

✓ /o"e e5!ens&on loan7 This is %i+e$ f!r e*(a$&i$% !r e*te$&i$% a$ e*isti$%

h!e f!r e.%.7 a&&iti!$ !f a$ e*tra r!! etc.

✓ /o"e 'on(e$s&on loan7 This is f!r th!se 'h! ha+e fi$a$ce& the (rese$t h!e

'ith h!e )!a$ J 'ish t! ("rchaseJ !+e t! a$!ther h!e f!r 'hich s!e e*tra

f"$&s are re4"ire& thr!"%h h!e !$ +ersi!$ )!a$ ,e*isti$% )!a$ is tra$sferre& t! the

$e' h!e i$c)"&i$% the e*tra a!"$t re4"ire& e)ii$ati$% the (re (a#e$t !f the

(re+i!"s )!a$.

✓ Lan 1u$'has&n4 loan7 this )!a$ is a+ai)a1)e f!r the ("rchasi$% !f )a$& f!r

1!th c!$str"cti!$ a$& i$+este$t ("r(!se.

✓ B$&4e loan7 these are &esi%$e& f!r th!se (e!()e 'h! 'ish t! se)) the e*isti$%

h!e J ("rchase a$!ther !$e. The 1ri&%e )!a$ he)( fi$a$ce the $e' h!e, "$ti) a

1"#er is f!"$& f!r the h!e.


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/DFC BANK

INTRODUCTION

HDFC


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/ith its tree$&!"s 1ra$& e4"it#, the str!$% re("tati!$ i$ the I$&ia$ a$& i$ter$ati!$a)

fi$a$cia) ser+ices ar-et, )ar%e shareh!)&er 1ase a$& "$i4"e c!$s"er fra$chise, HDFC 'as

i&ea))# (!siti!$e& t! (r!!te a 1a$- i$ the

I$&ia$ e$+ir!$e$t. HDFC


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s!e !f the f!rei%$ 1a$-s ha+e a si%$ifica$t (rese$ce a!$% $!$6resi&e$t I$&ia$s a$& a)s!

c!(ete f!r $!$61ra$ch 1ase& (r!&"cts s"ch as a"t! )!a$s a$& cre&it car&s. The# face

si%$ifica$t c!(etiti!$ (riari)# fr! f!rei%$ 1a$-s. I$ (r!+isi!$ !f &e1it car&s a$& a)s!

e*(ect t! face c!(etiti!$ fr! f!rei%$ 1a$-s 'he$ 'e 1e%i$ !fferi$% cre&it car&s. I$ "t"a)

f"$& sa)es a$& !ther i$+este$t re)ate& (r!&"cts, their (ri$ci(a) c!(etit!rs are 1r!-ers a$&

f!rei%$ (ri+ate 1a$-s.

TREASURY

I$ treas"r# a&+is!r# ser+ices f!r c!r(!rate c)ie$ts, the c!(ete (ri$ci(a))# 'ith f!rei%$

1a$-s i$ f!rei%$ e*cha$%e a$& &eri+ati+es tra&i$% as 'e)) as SBI a$& !ther ("1)ic sect!r 1a$-s i!$ the f!rei%$ e*cha$%e a$& !$e# ar-et 1"si$ess.

LOANS

HDFC 1ri$%s 1ac- #!" a 'i&e ra$%e !f )!a$s t! cater #!"r fi$a$cia) $ee&s.

The 1a$- !ffers the f!))!'i$% )!a$s7

?= Pers!$a) )!a$s.

= C!$s"er )!a$s.= A"t! )!a$s

@= L!a$s a%ai$st shares

>= L!a$s a%ai$st RBI 1!$&s

= L!a$s a%ai$st i$s"ra$ce (!)ic#

8= E6 I$sta$t )!a$s %i+e the faci)it# !f )!a$s a((r!+a) i$ the

sec!$& !$ the i$ter$et.

9= HDFC has !ffices s(rea& a)) !+er the c!"$tr#. This e*te$si+e

$et'!r- he)(s HDFC i$ (r!+i&i$% ser+ices t! )ar%e a$& 'e)) s(rea& !"t c)ie$ts. This

$et'!r- !f i$terc!$$ecte& !ffices

)ea&er i$ 1"si$ess f!r the )ast #ears. HDFC has +ast e*(erie$ce a$& a +er#

c!itte& a$& s-i))e& staff t! ha$&)e h!"si$% )!a$ a(()icati!$s a$& s!)+i$% c"st!er

(r!1)es.

/DFC LOAN SC/EME PURPOSE

HDFC Liite& !ffers )!a$s f!r the f!))!'i$% ("r(!ses7


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✓ La$& ("rchase

✓ H!e c!$str"cti!$("rchase

✓ H!e e*te$si!$

✓ H!e i(r!+ee$t )!a$s

✓ Sh!rt6ter 1ri&%e )!a$s

✓ N!$6resi&e$t (reises )!a$s f!r (r!fessi!$a)s.

LOAN AMOUNT

!" ca$ a+ai) !f a*i" !f "( t! 9>: !f the c!st !f the (r!(ert#, i$c)"&i$% the c!st !f the

)a$&.

LOAN TENURE

!" ca$ re(a# the )!a$ !+er a a*i" (eri!& !f #ears "$&er 1!th FRHL a$& ARHL.

Re(a#e$t 'i)) $!t !r&i$ari)# e*te$& 1e#!$& #!"r a%e !f retiree$t #ears !f a%e, 'hiche+er is ear)ier. H!'e+er, HDFC 'i)) e$&ea+!r t!&eteri$e the re(a#e$t (eri!& t! s"it #!"r c!$+e$ie$ce.

RATE OF INTEREST

The rate !f i$terest !f HDFC is 9.8>:."$&er the !$th)# rest !(ti!$, i$terest is ca)c")ate& !$

!$th)# rests. Pri$ci(a) re(a#e$t is cre&ite& at the e$& !f e+er# !$th.

At HDFC #!" ha+e the ch!ice 1et'ee$ the $!ra) FRHL a$& the i$$!+ati+e ARHL.

A)ter$ati+e)# #!" ca$ a)s! a+ai) the (art !f the )!a$ "$&er FRHL a$& 1a)a$ce "$&er ARHL.

HDFC a)s! !ffers #!" the !(ti!$ t! s'itch 1et'ee$ schees f!r the $!i$a) fee. I$terest

rates !$ ARHL 'i)) 1e )i$-e& t! HDFC3s Retai) Prie Le$&i$% Rate


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Sec"rit# f!r the )!a$ $!ra))# is first !rt%a%e !f the (r!(ert# t! 1e fi$a$ce& a$&!r s"ch

!ther c!))atera) sec"rit# as a# 1e $ecessar#. I$teri sec"rit# a# 1e re4"ire&, if the

(r!(ert# is "$&er c!$str"cti!$. C!))atera) !r i$teri sec"rit# c!")& 1e assi%$e& t! HDFC !f

)ife i$s"ra$ce (!)icies, the s"rre$&er +a)"e !f 'hich is at )east e4"a) t! the )!a$ a!"$t,

%"ara$tees fr! s!"$& a$& s!)+e$t %"ara$t!rs, ()e&%e !f shares a$& s"ch !ther i$+este$ts

that are acce(ta1)e t! the HDFC.

L!a$s fr! HDFC are a+ai)a1)e e+e$ if #!" are a+ai)i$% a h!"si$% )!a$ fr! #!"r e()!#er.

HDFC has a)rea e$tere& i$t! arra$%ee$ts 'ith se+era) e()!#ers e$a1)i$% e()!#ees t!

a+ai) !f )!a$s 1!th fr! the e()!#er as 'e)) as HDFC f!r the sae (r!(ert#. P)ease &!

e$s"re that the tit)e !f the (r!(ert# is c)ear, ar-eta1)e a$& free fr! e$c"1ra$ce. T!

e)a1!rate there sh!")& $!t 1e a$# e*isti$% !rt%a%e, )!a$ !r )iti%ati!$ 'hich is )i-e)# t!

affect the tit)e t! the (r!(ert# a&+erse)#.DOCUMENTS>SUPPORTING DOCUMENTS TO BE ATTATC/ED3

FOR ALL THE APPLICANTS7

?= A))!te$t )etter !f the !6!(erati+e s!ciet#ass!ciati!$ !f the

a(arte$t !'$ers.

= C!(# !f a((r!+e& &ra'i$%s !f (r!(!se&

c!$str"cti!$("rchasee*te$si!$.

= A%reee$t f!r sa)esa)e &ee&&etai)e& c!st estiate fr!architecte$%i$eer f!r the (r!(ert# t! 1e ("rchase&c!$str"cte&e*te$&e&re$!+ate&.

@= If #!" ha+e 1ee$ i$ #!"r (rese$t e()!#e$t1"si$ess !r

(r!fessi!$ f!r )ess tha$ a #ear, e$ti!$ a$ a se(arate sheet &etai)s !f the !f the

!cc"(ati!$s f!r (re+i!"s fi+e #ears, %i+i$% (!siti!$ he)&, reas!$ f!r cha$%e a$&

(eri!& !f sae.

>= A(()ica1)e (r!cessi$% fees.

= Pr!!f !f resi&e$ce7 atteste& c!(# !f a$# !$e !f the f!))!'i$%7

a= Rati!$ car&

1= Pass(!rt

c= Dri+i$% )ice$se

&= !ters i&e$tit# car&

e= C"rre$t te)e(h!$e 1i))e)ectricit# 1i))%as 1i))

8= Pr!!f !f i&e$tit#7 atteste& c!(# !f a# !$e !f the f!))!'i$%7

a= Pass(!rt

1= Dri+i$% )ice$se

c= !ters i&e$tit# car>& i&e$tit# car& iss"e& 1# the e()!#er


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9= Certificate !f )!a$ !"tsta$&i$% iss"e& 1# the )e$&er


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The re(a#e$t ca(acit# as &eteri$e& 1# the HDFC 'i)) he)( i$ &eci&i$% h!' "ch 'e ca$

1!rr!'

I$&ia. HDFC has f"rther esta1)ishe& a$ !ffice i$ D"1ai a$& ser+ice ass!ciates i$ K"'ait,

Oa$, atar, Bahrai$ a$& Sa"&i Ara1ia t! a-e it easier f!r Mi&&)e east 1ase& $!$6resi&e$t

I$&ia$s t! a(()# f!r the )!a$ t! HDFC6I$&ia.

E?PERIENCED TRAINED STAFF3


17/65


18/65

The EMI Choose$ ;

I$ this ()a$ the a(()ica$t %ets the a&+a$ta%e fr! HDFC t! se)ect the a!"$t that

he 'a$ts t! (a# as his fist EMI. This ea$s that HDFC 'i)) )et the a(()ica$t &eci&e

'hat a!"$t he ca$ c!f!rta1)# (a# t! HDFC i$ the first ter !f his L!a$ Re(a#e$t

Sche&")e. The s#ste 'i)) ca)c")ate the $e*t t'! EMIs f!r the $e*t t'! ters

The c"st!er ca$ he$ce &eci&e 'he$ he 'a$ts t! re(a# the a*i" a!"$t !f the L!a$ t!

HDFC a$& 'he$ he 'a$ts t! re(a# i$i" )eft!+er !r reai$i$% a!"$t !f the )!a$ i$ the

f!r !f sti)) sa))er EMIs.

The EMI Choose$ 6

This ()a$ is a$ e*te$si!$ !f the af!ree$ti!$e& ()a$ .I$ this ()a$ HDFC he)(s the A(()ica$t

1# )etti$% hi ch!!se t'! EMIs .This ea$s that the A(()ica$t ca$ se)ect the a!"$t that he

'a$ts t'! (a# f!r 1!th the First a$& the Sec!$& ters !f his re(a#e$t sche&")e. This

tra$s)ates i$t! !re he)( a$& !re c!$+e$ie$ce t! the a(()ica$t. H!'e+er the 1e$efits !f

these ()a$s &!$3t st!( here.

The A(()ica$t ca$ a)s! a))!cate the ter )e$%th f!r 'hich he 'a$ts t! (a# 'hat a!"$t

This tra$s)ates i$t! a %reat a&+a$ta%e t! the A(()ica$t .He ca$ $!' )i$-

?. His c"rre$t sa)ar#

. The rate !f a+era%e i$cree$t,

. His e*isti$% a$& e*(ecte& !1)i%ati!$s,

@. His e*isti$% a$& e*(ecte& e*(e$ses

>. The )e$%th !f the ter a!$% !thers.

HDFC ca$ he$ce assist the A(()ica$t i$ &e+e)!(i$% a "ch !re (ers!$a)i2e& )!a$ ()a$ as

c!(are& t! its c!(etit!rs i$ the H!"si$% L!a$ ar-et.

The A(()ica$t ca$ a)s! sa+e !$e# 1# "si$% these ()a$s .This is 1eca"se the t!ta) O"tf)!' i$

case !f a re%")ar ()a$ is !re as c!(are& t! these s(ecia) ()a$s. The A(()ica$t 'i)) he$ce

!1tai$ !re 1e$efit i$ case !f Pre(a#e$t a$& e)se'here.

C. A)) L!a$s fr! HDFC Lt& are s"10ect t! Ta* e*e(ti!$ a$& 1e treate& as Re1ate.

He$ce HDFC )ets the c"st!er sa+e their har& ear$e& !$e#.

FLE?IBLE LOAN INSTALMENT PLAN %FLIP=


19/65

A$!ther First !f its -i$& (r!&"ct fr! HDFC .This is a)s! t! assist the A(()ica$t t! easi)#

sec"re a )!a$ i$ the f!))!'i$% c!$&iti!$. FLIP is "se& 'he$ the a(()ica$t a$& c!6a(()ica$t

'a$t t! 0!i$t)# re(a# the )!a$. There is h!'e+er a (r!1)e i$ the sit"ati!$ 'hich '!")&

!ther'ise $!t a))!' the )!a$ t! 1e sa$cti!$e&. There are t'! a(()ica$ts he$ce t'! i$c!es

.Theref!re i$ the 0!i$t (a#e$t the# ca$ c!1i$e their i$c!e t! re(a# the )!a$ .Let there 1e

Mr. A a$& B 'h! 'a$t t! ta-e a )!a$ f!r ?@ #ears .A is the father a$& B is the s!$ !f A .N!'

c!$si&er the sit"ati!$ i$ 'hich A a$& B 'a$t t! ta-e a )!a$ a$& 0!i$t)# re(a# it .B"t A is >

#ears !)& a$& B is !$)# > .He$ce A 'i)) retire after 9 #ears a$& 'i)) $!t 1e re(a#i$% the EMI

1"t B ca$ c!$ti$"e t! re(a# the )!a$. I$ that case a)th!"%h there 'i)) 1e a (r!1)e at !ther

()aces 1"t i$ HDFC this is s!)+e& 1# ta-i$% &iffere$t i$c!es i$ the ters. He$ce the i$c!e

that 'i)) 1e c!$si&ere& ear)ier 'i)) 1e the father3s i$c!e a$& at his retiree$t !r at a$# !ther

se)ecte& sta%e !f re(a#e$t 'e 'i)) 1e%i$ t! c!$si&er !$)# the i$c!e !f the s!$.

The a&+a$ta%e !f FLIP i$ ters !f the A(()ica$t is that !f 0!i$t (a#e$t, (ers!$a)i2ati!$,eas# re(a#e$t, a$& free&! fr! a$# (!ssi1)e (r!1)es. I$ the I))"strati!$ the father is

%!i$% t! (a# !$)# f!r ?> !$ths a$& after that 'e are t! c!$si&er the s!$s sa)ar# !$)# f!r

the $e*t reai$i$% !$ths.

PARI PASSU>SECOND MORTGAGE ARRANGEMENT3

HDFC has a tie6"( 'ith a )ar%e $"1er if ("1)ic sect!r !r%a$i2ati!$s a$& 1a$-s 'hich

e$a1)e "s t! !ffer )!a$s t! #!"r e()!#ees 'ith the f)e*i1i)it# !f their s(!"se a)s! a+ai)i$% a

)!a$ fr! hisher !'$ e()!#er.

SAFE DOCUMENT STORAGE FACILITIES3

HDFC has state !f art st!ra%e faci)ities 'hich are theft a$& fire (r!!f, at +ari!"s )!cati!$s

'here )!a$ a$& (r!(ert# &!c"e$ts are st!re&. I$ this 'a# +a)"a1)e &!c"e$ts are st!re&

safe)# !+er the (eri!& !f the )!a$ a$& are re)ease& a)!st ie&iate)# after a c"st!er re(a#

his )!a$.

ELECTRONIC MAIL3

HDFC thr!"%h its E6ai) ser+ices ca$ (r!(t)# res(!$& t! 4"eries. I$ a&&iti!$, HDFC ca$

(r!(t)# se$& its a(()icati!$ f!r c" 1r!ch"re a$& !ther &etai) !$ its )!a$ (r!&"cts 1# e6

ai) t! i$tereste& i$&i+i&"a)s. F!r N!$6resi&e$t I$&ia$s !"r i$teracti+e 'e1site !ffers a$!ther

ea$s !f c!$tacti$% "s. I$ !"r eff!rt t! reach !"t %)!1a))# &is(erse& N!$6resi&e$t I$&ia$s, 'e

'i)) c!$ti$"!"s)# e$ha$ce !"r 'e1site.

/OME CONVERSION LOAN3

HDFC !ffer the !(ti!$ !f a h!e c!$+ersi!$ )!a$ t! its e*isti$% c"st!er 'h! are i$tereste&

i$ !+i$% t! a $e' h!"se. Thr!"%h this schee the c"st!er ca$ a(()# t! ha+e their e*isti$%)!a$ tra$sferre& t!'ar&s the ("rchase !f the $e' h!e. C"st!ers a# a)s! a(()# f!r a$


20/65

a&&iti!$a) )!a$ a!"$t f!r the ("rchase !f the $e' h!"se. This %i+es the c"st!ers the

!(ti!$ !f se))i$% their e*isti$% h!"se if the# 'ish t!, 'ith!"t ha+i$% t! re(a# their !)& )!a$

APPLICATION CAN BE MADE BEFORE SELECTING T/E PROPERTY3

I$&i+i&"a)s a# a-e a$ a(()icati!$ f!r the )!a$ e+e$ if the (r!(ert# has $!t 1ee$ se)ecte&

!r the c!$str"cti!$ has $!t c!e$ce&. HDFC ca$ (r!+i&e assista$ce i$ )!cati$% a$

a((r!(riate h!"se t! s"ch c"st!ers.

/OME IMPROVEMENT LOANS3

As a$ e*c)"si+e !ffer t! its e*isti$% c"st!ers HDFC !ffers H!e I(r!+ee$t L!a$ "( t!

?: !f the i(r!+ee$t c!st as c!(are& t! the h!e i(r!+ee$t )!a$s "( t! 8: !f the

i(r!+ee$t c!st !ffere& t! the %e$era) ("1)ic.

FEE3

A (r!cessi$% fee !f .>: !f the )!a$ a!"$t a(()ie& f!r rs.> (er rs.? !f the )!a$ a(()ie&

f!r is (a#a1)e 'he$ the a(()icati!$ f!r is s"1itte& t! HDFC. This fee is i$ the res(ect !f

c!sts i$ci&e$ta) t! the a(()icati!$. F!r e*a()e7

L!a$ a(()ie& f!r fees

Rs. Rs.?

Rs.? Rs. >

O$ a((r!+a) !f the )!a$, a )!a$ !ffer is a&e t! #!" !$ acce(ta$ce !f the !ffer. !" ha+e t!

(a# a$ a&i$istrati+e fee !f Rs..>: !f the )!a$ a((r!+e&. !" ca$ a)s! (a# the (r!cessi$%

fee a$& a&i$istrati+e fee "(fr!$t i.e. ?: !f the )!a$ at the tie !f s"1issi!$ !f the )!a$

a(()icati!$ itse)f. This fee is i$ res(ect !f the c!sts i$ci&e$ta) t! the a(()icati!$. Ta*es as

a(()ica1)e 'i)) 1e char%e& !$ the fees c!))ecte&.

C/ARGES3

F!r Fi*e& Rate H!e L!a$ : !f the !(e$i$% 1a)a$ce.

H!'e+er "$&er A&0"sta1)e Rate H!e L!a$


21/65

/OW TO APPLY

C"st!er ca$ either &!'$)!a&

i$sta))e$ts


22/65

PROCESS

✓ First !f a)) &!c"e$ts are c!))ecte&

RESEARC/ MYT/ODOLOGY

Research eth!&!)!%# is a$ i(!rta$t (art !f e+er# (r!0ect. Beca"se it he)(s i$ -$!'i$%

h!' t! se)ect the re(rese$tati+e sa()e fr! the '!r)& !r the %e$era) (!(")ati!$, the ri%ht

research t!!)s a$& tech$i4"es t! c!()ete the research.

The st" !f the c!$s"er 1eha+i!r is i(!rta$t 1eca"se he is the -i$%. The research (r!cess

is 1ase& "(!$ s"r+e# eth!&, s! i$ !r&er 'e %! t! ser+ice (r!+i&er a$& ser+ices "ser 'hich is

the c"st!ers.

The research i$+!)+es the f!))!'i$% ste(s7

✓ De)&ne !he 1$o*le" an $esea$'h o*e'!&(e3 The (r!1)e

a$& !10ecti+e is t! assess the ser+ices !ffere& 1# the +ari!"s ser+ice (r!+i&ers a$&

'hat the c"st!er 'a$ts.

✓ De(elo1&n4 !he $esea$'h 1lan3 The sec!$& sta%e !f the research eth!&!)!%#is t! &e+e)!( a research ()a$. The research ()a$ &esi%$e& t! ta-e the &ecisi!$ !$ the


23/65


24/65

ROI rs. 6?:

> 6 ? rs. 6

? : ? 6?>

rs. 6 ?:

?> 6rs6

?.8>:

U( t! >#rs6

.>: : : :


25/65

MINIMUM AGE ? > > >

MAIMUM AGE >> >> >>

COMPARISON OF MA.OR PLAYERS

The ar-ets f!r h!e )!a$s ha+e 1ee$ si22)i$% i$ I$&ia. The s("rt i$ %r!'th i$ rece$t #ears

a$& the (r!s(ect !f c!$ti$"e& 1"!#a$c# i$ &ea$& ha+e attracte& a$# ()a#ers t! the

i$&"str# 'hich ti)) a c!"()e !f #ears 1ac- ha& t'! a0!r ()a#ers6 HDFC a$& LIC H!"si$%

Fi$a$ce. The res")t is c"t6thr!at c!(etiti!$, 'hich has 1e$efite& the )!a$ see-ers. The h!e

)!a$ ar-et has %r!'$ at a c!(!"$&e& rate !f !+er @: !+er the )ast f!"r #ears. A$& fr!

'hat i$&"str# e*(erts 1e)ie+e that there is a )itt)e cha$ce that there 'i)) 1e a$# si%$ifica$t

&ec)i$e i$ the %r!'th rates %!i$% f!r'ar&. S! 'hat ha+e 1ee$ the -e# fact!rs i$ tri%%eri$% !f

this hi%h %r!'th (eri!&

There are se+era) reas!$s f!r the sae !$ the &ea$& si&e76

✓ Faster rise i$c!e as c!(are& t! (r!(ert# (rices, th"s a-i$%

h!"si$% !re aff!r&a1)e.

✓ Dec)i$e i$terest rates, 'hich ha+e %reat)# re&"ce& the c!st !f 1!rr!'i$%


26/65


27/65

“The attracti!$ !f a f)!ati$% rate h!e )!a$ is that it &!es $!t attract a (art

(re(a#e$t char%e. This c!")& a((ea) t! i$&i+i&"a)s 'h! %et )"( s" 1!$"ses

'hich the# ca$ "se t! re&"ce their )!a$ e*(!s"re.”

✓ Sec!$&, the iss"e 'hether fi*e& rate h!e )!a$ are act"a))#

fi*e& rate3. /he$ c!$si&eri$% a fi*e& rate h!e )!a$ !+er f)!ati$% rate !f h!e )!a$

a str!$% se))i$% (!i$t is that if i$terest rate 'ere t! rise &raatica))# #!" 'i)) 1e

(r!tecte&. A((are$t)# the rea)it# is s!e 'hat &iffere$t. It sees that c!(a$ies that

ha+e %i+e$ !"t fi*e& rate h!e )!a$s ca$ re+ise their rates "('ar&s i$ e*ce(ti!$a)

circ"sta$ces


28/65

= Get (re6a((r!+a) )etter. This %i+es #!" s"1sta$tia) )e+era%e as

#!" are the$ see$ as seri!"s 1"#er 1# the se))er !f the (r!(ert#. A)s!, ha+i$% the )etter

i$ #!"r ha$& 'i)) set a )iit t! the a!"$t !f !$e# #!" ca$ c!it t! the (r!(ert#.

This 'i)) he)( i$ i&e$tif#i$% the ri%ht (r!(ert#.

@= Bar%ai$ f!r a )!'er rate !f i$terest. H!"si$% fi$a$ce 'i))

re&"ce their rac-3 rates f!r c"st!ers 'ith the %!!& cre&it rec!r&. A 1ar%ai$ &ea)

'i)) easi)# fi*e& a h!e )!a$ at si%$ifica$t)# )!'er rates (erce$t=. Here a%ai$ %et a c!$firati!$ !f the rate = /atch !"t f!r a (re&at!r# )e$&i$%. D!$3t i$c)"&e fa)se

i$f!rati!$ !$ #!"r h!e )!a$ a(()icati!$ t! %et 4"ic- a((r!+a). A)s! &! $!t 1!rr!'

!re !$e# tha$ #!" $ee& !r ca$ aff!r&.

A f)!ati$% i$terest rate a))!'s c"st!er t! ta-e a&+a$ta%e !f i$terest rate !+ee$ts. The#

%et i"$it# fr! a&+erse !+ee$ts a$& rea& the 1e$efits !f a$# fa)) i$ i$terest rate 1"t a

f)!ati$% rate )!a$ a-es se$se !$)# 'he$ i$terest rate are hi%h s! that the# ca$ ta-e

a&+a$ta%e !f (!ssi1)e fa)). B"t (re&icti$% i$terest rate !+ee$t c!")& c!$f!"$& e+e$

seas!$e& ar-et 'atchers.

If the# are )!!-i$% f!r a h!e )!a$, 1e (re(are& t! c!"%h "( a (rett# s" as &!'$ (a#e$t.

The RBI, i$ a rece$t eeti$% 'ith the 1a$-ers ca"ti!$e& 1a$-s a%ai$st )e$&i$% ?: !f the (r!(ert# +a)"e. That is 1eca"se !f i$creasi$% c!(etiti!$ i$ h!e )!a$ s!e 1a$-s ha+e

1ee$ f"$&i$% e+e$ ??: !f the a%reee$t +a)"e. This ea$s #!"r )!a$ $!t !$)# (a# f!r the

(r!(ert#, it he)(s 'ith the sta( &"t# a$& re%istrati!$ char%es a$& e+e$ f"r$ishi$%. Its 1ei$%

s'eet &ea) s! f!r, as 1!rr!'er $!t !$)# $ee& ha+e $! access t! !ther f"$&s, the# a)s! %et ta*

1rea-s.

The RBI3s (!siti!$ is that )e$&i$% s"ch s"s 'i)) reai$ a&&iti!$a) ris- f!r the 1a$-. I$ case

!f &efa")t, the 1a$- a# $!t ha+e s"fficie$t c!))atera) sec"rit# t! rec!+er &"es a$& a# ha+e

t! 'rite !ff the a&&iti!$a) 1!rr!'i$%s. H!'e+er, the 1a$-ers &! $!t see$ "$&")# '!rrie&.

N!$ (erf!ri$% assets i$ the h!"si$% se%e$t are 4"ite )!' 1e)!' ?: a$& that, sa# 1a$-ers,

is &"e t! the hi%her asset 4"a)it#.

SWOT ANALYSIS OF /OUSING FINANCE INDUSTRY

STRENGT/S

?= The i$&"str# has 1ee$ 'it$essi$% +er# fast %r!'th rate, 'hich is : %r!'th i$

the first


29/65

= "arter !f 6 as a%ai$st 6>: %r!'th rec!r&e& i$ the first 4"arter !f

?6

= The ar-et faces a hi%h &ea$& c"r+e, th!r!"%h)# isatche& 1# a )!'

s"(()# c"r+e

@= I$+este$t is 1ase& i$ assets that are sec"rities J th!se that ha+e hist!rica))#

a((reciate ra(i&)#.

>= Ta* 1e$efit J !ther faci)ities (r!+i&e& !$ )!a$ re(a#e$ts.

WEEKNESSES

?= The f!rec)!s"re r")es !f c!"rt !f )a' s"ch as (r!+isi!$ re%ar&i$% the

!'$ershi( !f $!t !re tha$ !$e h!"se


30/65

SWOT ANALYSIS OF /DFC /OME FINANACE

STRENGT/

?= Sa+e s"1sta$tia) i$terest.

= Pre(a# 'he$e+er the c"st!er.

= Re&"ce their )!a$ !"tsta$&i$%.

@= Access the s"r()"s fi$&s a$#tie.

>= Use s"r()"s f"$&s t! i$+est 'he$ the ri%ht !((!rt"$ities arises.

WEAKNESS

Pr!&"ct is +er# %!!& 1"t it is ai$)# s"ita1)e f!r hi%her i$c!e %r!"( J is $!t s"ita1)e f!r the Mi&&)e i$c!e %r!"(

OPPORTUNITIES

There is a()e sc!(e f!r fi$a$ci$% f)ats J a(arte$ts f!r the sa)arie& c)ass i$ the hi%her

i$c!e Gr!"(.

T/REATS

?= Nati!$a)i2e& 1a$-s )i-e SBI, U$i!$ Ba$-, PNB.

= Pri+ate Ba$-s )i-es HDFC J sta$&ar& chartere& J Citi Ba$- 'ith its h!e cre&it schee.


31/65

ICICI /OME FINANACE COMPANY LTD

C!$s"er frie$&)# h!"si$% fi$a$ce c!(a$#

/ISTORY

ICICI h!e fi$a$ce c!(a$# )t& 'as i$c!r(!rate& !$ Ma# 9, ? as ?: s"1si&iar# !f ICICI Pers!$a) Fi$a$cia) Ser+ices Liite&


32/65

c!r(!rate


33/65


34/65


35/65

Pr!fit J L!ss Acc!"$t certifie& 1# Chartere& Acc!"$ta$t f!r )ast #ears


36/65

/OME LOAN

?= C"st!er "st 1e at ? #ear !f a%e 'he$ the )!a$ is sa$cti!$e&.

= The )!a$ "st teri$ate 1ef!re !r 'he$ #!" t'i$ > #ear !f a%e !r 1ef!re retiree$t,

/hiche+er is ear)ier.

= C"st!er "st 1e e()!#e& !r se)f e()!#e& 'ith re%")ar s!"rce !f i$c!e

LOAN AMOUNT

✓ A $"1er !f fact!rs are ta-e$ i$t! acc!"$t 'he$ assessi$% re(a#e$t

ca(acit#.

✓ C"st!er i$c!e, a%e, $"1er !f &e(e$&e$ts, 4"a)ificati!$, asset J)ia1i)ities,

sta1i)it# a$& c!$ti$"it# !f c"st!er e()!#e$t. B"si$ess is !$e !f the. H!'e+er

there are 'a#s 1# 'hich #!" ca$ e$ha$ce #!"r e)i%i1i)it#.

✓ If the c"st!er s(!"se is ear$i$% ("t heshe as a c!6a(()ica$t. the a&&iti!$a)

i$c!e sha)) 1e i$c)"&e& t! e$ha$ce the )!a$ a!"$t. I$ci&e$ta))#, if there are a$# c!

!'$ers the# "st $ecessari)# 1e c!6a(()ica$t c"st!er fia$ce3s i$c!e ca$ a)s! 1e

c!$si&ere& sa$cti!$i$% the )!a$ !$ #!"r c!1i$e&✓ I$c!e .the &is1"rsee$t !f the )!a$, h!'e+er 'i)) 1e &!$e !$)# after the

s"1it (r!!f !f Marria%e. Pr!+i&i$% a&&iti!$a) sec"rit# )i-e 1!$&s, fi*e& &e(!sits J

LIC (!)icies a# a)s! he)( t! e$ha$ce E)i%i1i)it#.

✓ /hi)e there is $! $ee& f!r %"ara$t!r, it c!")& 1e that ha+i$% !$e i%ht

e$ha$ce #!"r cre&i1i)it# 'ith "s. If s!, !"r )!a$ !fficer '!")& (r!+i&e c"st!er 'ith

(!siti+e $ecessar# &etai)s.

✓ The fi$a) act t! 1e sa$cti!$e& 'i)) &e(e$& !$ #!"r re(a#e$t ca(acit#.

H!'e+er, 'hat c"st!ers ")tiate)# are e$tit)e& t! 'i)) ha+e t! c!$f!r 'ithi$ the

)iits fi*e& f!r each )!a$.

✓ A)s! 'he$ the c!(a$# )!!-s at the t!ta) c!st, re%istrati!$ char%es, sta(

&"t#, tra$sfer char%es are a)s! i$c)"&e&.

/OMELOAN

/e at ICICI 1a$- "$&ersta$& the +a)"e !f !'i$% #!"r h!"se. O"r aff!r&a1)e h!e )!a$s ca$

a-e a)) the &iffere$ce t! their &reas !f !'i$% h!e.

FIND T/E RIG/T /OME

Pr!+i&e faci)it# f!r search !f free !$)i$e (r!(ert#. A !$e st!( sh!( f!r a)) their


37/65

Rea) Estate $ee&s.

W/AT YOU GET

: 1r!-era%e !$ first sa)e (r!(erties access the e$tire ar-et "$&er !"r r!!f site +isits t! the

(r!(erties sh!rt )iste& 1# #!". He)( i$ $e%!tiati$% the 1est (rice. He)( the )e%a)

&!c"e$tati!$.

LISTINGS BELOW ARE T/E STEP INVOLVED IN AVAILING OF A /OMELOAN

✓ A (ers!$ a(()ies f!r a h!e )!a$

✓ The e*ec"ti+e eets the a(()ica$t J 1riefs hi the e$tire )!a$ (r!cess,

re4"iree$ts J the +ari!"s !(ti!$s a+ai)a1)e.

✓ The a(()ica$t ch!!ses a h!"si$% fi$a$ce c!(a$#


38/65

!f c!$+e#a$ce &ee& a$& !$ the i$+este$t !f #!"r !'$ c!$tri1"ti!$, the )!a$ a!"$t


39/65

This )ar%e)# &e(e$& !$ a $!. !f facts )i-e !$es a%e ,(r!fessi!$, sa)ar#, the cit# !$e resi&e is

a!$% !ther s"ch fact!rs. it +aries 1et'ee$ .?)a-h t! ?cr!re &e(e$&i$% !$ the )e$&er6 as the

r")e !f the th"1, &e(e$&i$% !$ HFC !$e ha+e t! c!"%h "( ?>: 6 : !f the )!a$ a!"$t as

the &!'$ (a#e$t. F!r sa))er a!"$t, this a# $!t 1e "ch. B"t f!r fi%"re reai$i$% i$t!

)a-h this c!")& a-e )!a&s !f &iffere$ce. F!r e.%. a$ a(arte$t !f c!sti$% Rs ? )a-h a# %et

9>: fi$a$ci$%, s! !$e 'i)) ha+e t! arra$%e f!r reai$i$% Rs ?> )a-h. If !$e ta-es this i$t!

a!"$t the a&&iti!$a) th!"sa$&s 'i)) &efi$ite)# ("t a strai$ !$ !$es fi$a$ces

.

TENURE

Ge$era))# the a*i" te$"re !f h!e )!a$s is ?> #ears, 'ith a fe' )e$&ers !fferi$% te$"re!f #ears !r !re. ICICI !ffers ?> #ear )!a$. The )!$%er the te$"re, the !re !$e (a# i$

t!ta) i$terest 1"t !$es !$th)# (a#e$t 'i)) 1e )ess. S! &e(e$&i$% !$es ear$i$% (!te$tia) J

1a$- 1a)a$ce !$e ca$ ch!!se a$ a((r!(riate te$"re. A$ i(!rta$t re4"iree$t !f !st !f the

1a$-s HFCs is that !$e (a#s "( the e$tire )!a$ 1ef!re !$e retires. O$e ca$ a)'a#s (re(a#

!$es e$tire )!a$ a!"$t 1ef!re it is &"e. There is a tre$& t! &! a'a# 'ith the (re6(a#e$t

(e$a)t# 1ei$% i(!se& 1# s!e )e$&ers. S! its 1est !$e chec-s !$ this as 'e)).

INTEREST RATE

/ith!"t &!"1t the !st i(!rta$t (araeter t! fact!r i$t! !$es ca)c")ati!$s. The i$terest

rates a# +ar# fr! i$stit"ti!$ t! i$stit"ti!$. Re(a#e$t is i$ the f!r !f EMI3s


40/65

This is c!$ce(t that is #et t! catch !$ i$ the h!e )!a$ ar-et 1"t is 1!"$& t! 1e a a0!r

ser+ice i$ the !$ths t! c!e. U$&er this faci)it#, !$e ca$ ta-e a $e' )!a$ fr! a$!ther

1a$-HFC t! (a# 1ac- a$!ther )!a$ 1ef!re its $at"ra) te$"re. It %i+es !$e the !((!rt"$it# !f

(re(a#i$% !$es hi%h c!st &e1t a$& %et a )!'er c!st !$e. I$ t!&a#3s fa))i$% i$terest rate

sce$ari! !$e sh!")& "se this +ehic)e t! )!'er !$es &e1t (a#e$t as "ch as (!ssi1)e. The

)e$&er faci)itates the shift 1# (a#i$% the !"tsta$&i$% a$& tra$sferri$% the asset t! !ther

(!rtf!)i!.

MISCELLANEOUS C/ARGES

The i$terest rates a$& EMI3s are $!t !$)# the c!st fact!r. Ne+er "$&erestiate h!' "ch the

(r!cessi$% fee a$& a&i$istrati!$ fees a!"$t t!. A .>: a&i$istrati!$ fees a$& .>:

(r!cessi$% fee !$ sa#, a Rs.> )!a$ '!")& 1e Rs.>. !ther tiesit c!")& 1e 0"st !$efee


41/65

ICICI Ba$- has a$$!"$ce& a shift i$ the e*isti$% 1e$char- rate fr! F)!ati$% Refere$ce

Rate


42/65

PUN.AB NATIONAL BANK

INTRODUCTION

PNB has !+er @> 1ra$ches a$& !ffices 1ri$%i$% the P"$0a1 Nati!$a) Ba$- t! #!"r &!!rste(.

Ar!"$& @ !ffices c!e "$&er the $et'!r- !f Ce$tra)i2e& Ba$-i$% S!)"ti!$ !r CBS. A

$ee& f!r ce$tra)i2e& 1a$-i$% s#ste (r!(te& PNB t! %! c!("teri2e& a$& 'hat f!))!'e&

'as the esta1)ishe$t !f CBS i$ P"$0a1 Nati!$a) Ba$- 1ra$ches i$ a)) the )ea&i$% cities )i-e

De)hi, P"$e, Che$$ai, M"1ai, Ahe&a1a&, Cha$&i%arh, G"r%a!$, H#&era1a&, a)a$&har,

K!)-ata, L"&hia$a, N!&a) a$& Ba$%a)!re. I$ter$et Ba$-i$% Ser+ices are (r!+i&e& t! a))

c"st!ers i$ the CBS 1ra$ches. A 1ra$ch a$& ATM )!cat!r is a)s! a+ai)a1)e !$ the !fficia)

'e1site !f P"$0a1 Nati!$a) Ba$-. F!r a$ !+er+ie' !f the a$$"a) re(!rt !r the 1a$- (r!fi)e,

the site ca$ 1e res!"rcef"). The 'e1site a)s! (r!+i&es i$f! !$ the careers a$& recr"ite$ts at

PNB a$& the e*a res")ts. The careers at $ati!$a)i2e& 1a$-s )i-e PNB are the !st s!"%ht

after !$e a$& ca$&i&ates are se)ecte& !$ the 1asis !f their e*a res")t. PNB t!((e& the Best

Pa#i$% C!ercia) Ba$- cate%!r# 'ith a$ !+era)) rati$% !f 98.@>: as e+a)"ate& 1# the SSS

Retiree$t, Death J F"$era) Be$efits Pr!%ra.

PROFILE OF PNB

The (r!fi)e !f the PNB sh!'s s"(eri!r *ank&n4 se$(&'es i$ c!r(!rate, (ers!$a) a$&

i$ter$ati!$a) 1a$-i$%, i$&"stria) a$& a%ric")t"ra) fi$a$ce a$& fi$a$ce !f tra&e. P"$0a1 Nati!$a) Ba$- 1!asts !f a +arie& c)ie$te)e c!$sisti$% !f sa)) a$& e&i" i$&"stria) "$its,


43/65

e*(!rters, ")ti6$ati!$a) c!(a$ies, I$&ia$ c!$%)!erates a$& NRI. The Ba$- is cha$%i$%

!"t&ate& fr!$t a$& 1ac- e$& (r!cesses t! !&er$ c"st!er frie$&)# (r!cesses t! he)(

i(r!+e the t!ta) c"st!er e*(erie$ce. /ith a1!"t 9> !f its !'$ ? 1ra$ches a$&

a$!ther >? 1ra$ches !f its Ass!ciate Ba$-s a)rea $et'!r-e&, t!&a# it !ffers the )ar%est

1a$-i$% $et'!r- t! the I$&ia$ c"st!er. The Ba$- is a)s! i$ the (r!cess !f (r!+i&i$%

c!()ete (a#e$t s!)"ti!$ t! its c)ie$te)e 'ith its !+er 9> ATMs, a$& !ther e)ectr!$ic

cha$$e)s s"ch as I$ter$et 1a$-i$%, &e1it car&s, !1i)e 1a$-i$%, etc.The !10ecti+es !f the

C!(a$# are i$ )i$e 'ith !10ecti+es )ai& &!'$ 1# RBI f!r the Priar# Dea)ers7

Stre$%the$ the i$frastr"ct"re i$ the %!+er$e$t sec"rities ar-et i$ !r&er t! a-e it +i1ra$t,

)i4"i& a$& 1r!a& 1ase&.

E$s"re the &e+e)!(e$t !f "$&er'riti$% a$& ar-et a-i$% ca(a1i)ities f!r G!+er$e$t

Sec"rities

I(r!+e sec!$&ar# ar-et tra&i$% s#ste, 'hich '!")& c!$tri1"te t! (rice &isc!+er#,e$ha$ce )i4"i&it# a$& t"r$!+er a$& e$c!"ra%e +!)"$tar# h!)&i$% !f G!+er$e$t sec"rities

a!$%st a 'i&er i$+est!r 1ase

Bec!e a$ effecti+e c!$&"it f!r c!$&"cti$% !(e$ ar-et !(erati!$s.

PNB /ISTORY

P"$0a1 Nati!$a) Ba$- !f I$&ia 'as esta1)ishe& 1# La)a La0(at Rai i$ the (re6i$&e(e$&e$ce

I$&ia i$ ?9> i$ P"$0a1, 'ith Lah!re as its hea& !ffice. T!&a# it is the sec!$& )ar%est ("1)ic

sect!r 1a$- i$ I$&ia. It 'as $ati!$a)i2e& i$ ? a)!$% 'ith ? !ther a0!r c!ercia) 1a$-s. The (ri+ati2ati!$ starte& i$ ?9 'he$ (er ce$t !f its shares 'ere !ffere& t! the

("1)ic a$& it 'as )iste& !$ the st!c- e*cha$%e.I$ ?, PNB 1ecae the first Phi)i((i$e 1a$-

t! reach P? 1i))i!$ i$ assets. Later that #ear, (ri+ati2ati!$ c!$ti$"e& 'ith a sec!$& ("1)ic

!fferi$% !f its shares. I$ A"%"st >, PNB 'as f"))# (ri+ati2e&. The 0!i$t sa)e 1# the

Phi)i((i$e %!+er$e$t a$& the L"ci! Ta$ Gr!"( !f the 8: sta-e i$ PNB 'as c!()ete&

'ithi$ the thir& 4"arter !f >. The L"ci! Ta$ Gr!"( e*ercise& its ri%ht t! atch the P

@.88 (er share 1i& !ffere& 1# a c!(etit!r a$& ("rchase& the shares !'$e& 1# the

%!+er$e$t. The c!()eti!$ !f sa)e is e*(ecte& t! s(ee& "( the &e+e)!(e$t !f PNB3s

fra$chise a$& !(erati!$a) c!(etiti+e$ess.

T!&a#, State Ba$- !f I$&ia


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si%$ifica$t i)est!$e f!r these)+es a$& a $e' 1e$char- f!r the I$&ia$ 1a$-i$% i$&"str#.

C!()ete& i$ N!+e1er 9, @ !$ths ahea& !f sche&")e, the 1a$- i()ee$te& i$&"str#6

)ea&i$% Fi$ac)e c!re 1a$-i$% s!)"ti!$ fr! I$f!s#s acr!ss its !(erati!$s r"$$i$% a f)e*i1)e,

a$& sca)a1)e &ata1ase ()atf!r fr! Orac)e a$& i$$!+ati+e ser+ers fr! S"$ Micr!s#stes

/ith a$ i$creasi$%)# $aic 1"si$ess a$& re%")at!r# e$+ir!$e$t, PNB s!"%ht t! $!t !$)#

achie+e a"t!ati!$, 1"t a)s! ce$tra)i2e !(erati!$s, sta$&ar&i2e 1ra$ch (r!cesses, achie+e

hi%h sca)a1i)it# f!r f"t"re 1"si$ess %r!'th, (r!+i&e f)e*i1i)it# !f creati$% i$$!+ati+e 1a$-i$%

(r!&"cts t! its )i$es !f 1"si$ess, a$& at the sae tie, re&"ce !+era)) c!sts. The +isi!$ar#

2ea) a$& the f"t"ristic +ie' !f the Ba$-3s t!( a$a%ee$t i$ the #ear 869 i$c"1ate&

the i&ea !f i$tr!&"cti!$ !f a Ce$tra)ise& Ba$-i$% s!)"ti!$. The 1!)& a$& i$$!+ati+e th!"%ht

c")i$ate& i$t! the CBS architect"re 'ith Fi$ac)e a(()icati!$ !$ Orac)e Data1ase a$& S"$

har&'are ()atf!r 'ith S!)aris O(erati$% S#ste. /ith Fi$ac)e3s a%i)e a$& f"t"re (r!!f

tech$!)!%#, the 1a$- t!&a# has !+er ,> c!$c"rre$t "sers. The s!)"ti!$3s sca)a1i)it# has

a)s! e$a1)e& the 1a$-3s sca)a1i)it# t! 1e the 1est i$ the c!"$tr# 'ith the $"1er !f (ea- tra$sacti!$s at .> i))i!$. Fi$ac)e c!re 1a$-i$% ()atf!r a)s! (r!+i&es the 1a$- 'ith

e*ce(ti!$a) a%i)it# f!r (r!&"ct i$$!+ati!$ a$& i(r!+e& f)e*i1i)it# !f !(erati!$s. /ith

sea)ess i$te%rati!$ !f &e)i+er# cha$$e)s s"ch as ATM a$& i$ter$et 1a$-i$% s!)"ti!$s, PNB

is a1)e t! (r!+i&e @8 ser+ices t! c"st!ers at a re&"ce& tra$sacti!$ c!st. PNB3s ch!ice !f

the Orac)e Data1ase has (r!+i&e& the 1a$-3s IT i$frastr"ct"re 'ith r!1"st$ess, a$a%ee$t

feat"res, sec"rit# a$& sca)a1i)it# as 'e)) as (erf!ra$ce re4"iree$ts t! ser+ice .> i))i!$

tra$sacti!$s a$& > c!$c"rre$t "sers a si%$ifica$t achie+ee$t i$ the I$&ia$ 1a$-i$%

i$&"str#. I$ a&&iti!$, the Orac)e Data1ase 'i)) he)( PNB ta-e c!$tr!) !f its e$ter(rise

i$f!rati!$, %ai$ 1etter 1"si$ess i$si%ht, a$& 4"ic-)# a$& c!$fi&e$t)# a&a(t t! a$i$creasi$%)# cha$%i$% c!(etiti+e e$+ir!$e$t.

/ith sec"re, hi%h)# a+ai)a1)e a$& sca)a1)e %ri&s !f )!'6c!st ser+ers a$& st!ra%e, Orac)e

c"st!ers ca$ tac-)e the !st &ea$&i$% tra$sacti!$ (r!cessi$%, &ata 'areh!"si$%, 1"si$ess

i$te))i%e$ce a$& c!$te$t a$a%ee$t a(()icati!$s. The ?: i()ee$tati!$ !f Fi$ac)e

C!re Ba$-i$% S!)"ti!$ sha)) e$a1)e PNB t! f"rther re&"ce !(erati!$a) c!sts a$& re+e$"e

)ea-a%e 'hi)e i(r!+i$% (r!&"cti+it# !f 1ra$ches, i$tr!&"cti!$ !f $e' a$& i$$!+ati+e

(r!&"cts a$& +isi1i)it# !f 1"si$ess. The a$#'here a$#tie 1a$-i$% faci)it# 'i)) e$a1)e the

1a$- t! !ffer (r!&"cts f!r e+er# se%e$t !f the c"st!er. PNB )!$%6sta$&i$% a$& (r!%ressi+e

(art$ershi( a)s! hi%h)i%hts Fi$ac)e3s )ea&ershi( i$ )ar%e sca)e 1a$-i$% tra$sf!rati!$, the

s!)"ti!$3s f"t"re (r!!f tech$!)!%# a$& (!'erf") ca(a1i)ities. I$&ia is a strate%ic ar-et f!r

Fi$ac)e a$& 'e )!!- f!r'ar& t! c)!se)# c!))a1!rati$% 'ith P"$0a1 Nati!$a) Ba$- f!r their

f"t"re %r!'th ()a$s.”

REGULAR /OUSING FINANCE SC/EME FOR PUBLIC

PNB reaches !"t t! #!" 'ith fast, frie$&)# a$& !st c!$+e$ie$t h!e )!a$s f!r7

✓ C!$str"cti!$ !r ("rchase !f h!"se f)at.


45/65

✓ P"rchase !f h!"se f)at !$ First P!'er !f Att!r$e# 1asis fr! the !ri%i$a)

a))!ttee

✓ Carr#i$% !"t re(airs re$!+ati!$s a&&iti!$s a)terati!$s t! e*isti$% h!"se f)at

✓ S(ecia) Feat"re6 T! c!+er the )!a$ !"tsta$&i$%, )ife I$s"ra$ce c!+er is a)s!

a+ai)a1)e !$ (a#e$t !f !$e tie (rei" 'hich ca$ a)s! 1e fi$a$ce& 1# the Ba$-.

PRODUCTS

PNB A($a Ghar !0a$a h!e )!a$s are ea$t f!r c!$str"cti!$ !r f!r ac4"isiti!$("rchase !f

h!"sef)ats. The i$i" )!a$ a!"$t '!")& 1e Rs.> a$& a*i" )!a$ a!"$t

&e(e$&s !$ the re(a#e$t ca(acit# !f the 1!rr!'er. I$ case !f 0!i$t a(()icati!$, i$c!e !f

1!rr!'ers c!61!rr!'ers is c)"11e& t!%ether f!r ca)c")ati!$ !f )!a$ e)i%i1i)it#. The )!a$

re(a#e$t is i$ E4"ate& M!$th)# I$sta))e$ts : !f the estiate&

c!st !f re(airsre$!+ati!$s

INDIVIDUAL

F!r c!$str"cti!$("rchase !f h!"sef)at7 6 8>: !f the c!st !f c!$str"cti!$ !f h!"se !r

("rchase !f h!"sef)at. C!st !f car (ar-i$% "( t! the a*i" e*te$t !f >: !f the c!st !f

f)ath!"se ca$ a)s! 1e i$c)"&e& i$ the c!st !f the (r!0ect. F!r carr#i$% !"t re(airs

re$!+ati!$s a&&iti!$s a)terati!$s7 6 8>: !f the estiate& c!st s"10ect t! a*i" !f Rs. )acs.

L!a$ is a+ai)a1)e "( t! Rs. )acs f!r ("rchase !f La$& P)!t. L!a$ is a+ai)a1)e a*i" "(

t! Rs. )acs f!r f"r$ishi$%

PRODUCT RANGE OF COMPANY>INDUSTRY3

The (r!&"cts a$& ser+ices (r!+i&e& 1# the PNB are i$ +ari!"s fie)&s, s"ch as7

NRI ser+ices

I$ter$ati!$a) 1a$-i$%

C!r(!rate 1a$-i$%

A%ric")t"ra) 1a$-i$%


ELIGIBILITY

A%e !f the a(()ica$t "st 1e )ess tha$ #ears.

E*isti$% h!e )!a$ 1!rr!'er ca$ a)s! a(()# (r!+i&e& their )!a$ acc!"$t is re%")ar a$& $! IR irre%")arit# (ersist.


46/65

DOCUMENTS NEEDED

?. Pr!!f !f i&e$tit#

. Pr!!f !f i$c!e

. Pr!!f !f resi&e$ce

@. Ba$- statee$t !r Pass B!!- 'here sa)ar# !r i$c!e is cre&ite&.

>. E&"cati!$ Certificate

. Ph!t!s

8. Sa)ar# s)i(s J f!r ?

9. I$c!e ta* ret"r$ )ast #ears a)!$% 'ith 1a)a$ce sheets.

. Assets )ia1i)ities statee$ts.

?. D!c"e$ts !f (r!(ert#.

??. Estiate !f c!$str"cti!$.?. G"ara$t!r

FREE/OLD AND LEASE/OLD PROPERTY

The )!a$ ca$ 1e %ra$te& 1!th f!r freeh!)& a$& )easeh!)& (r!(ert#.

I$ case !f )easeh!)&, )!a$ ca$ 1e %ra$te& !$ the 1asis !f (!'er !f att!r$e# 1asis fr! !ri%i$a)

a))!tee 'here DDAPUDAHUDA (erit c!$+ersi!$ !f )easeh!)& i$t! freeh!)& (r!(ert#

!ther'ise a&+a$ce is $!t (eritte& a%ai$st ()!t ("rchase& !$ P!'er !f Att!r$e# 1asis.

E?TENT OF LOAN

F!r c!$str"cti!$("rchase& !f h!"sef)at 8>: !f the c!st !f c!$str"cti!$ !r ("rchase !f

h!"sef)at. F!r carr#i$% !"t re(airsre$!+ati!$a&&iti!$sa)ter$ati!$7 6 8>: !f the estiate&

c!st s"10ect t! a*i" !f Rs. )acs. L!a$ "( t! Rs. )acs f!r ("rchase !f )a$&()!t

L!a$ is a+ai)a1)e a*i" "( t! Rs. )acs f!r f"r$ishi$%

C/ARGES

P$e 1a#"en! 'ha$4es 6

Balan'e T$ans)e$ Cha$4es


47/65

SPEED OF SANCTION OF LOAN

The )!a$ 'i)) 1e sa$cti!$e& 'ithi$ 8 '!r-i$% &a#s.

TENURE3

!" ca$ re(a# the )!a$ !+er a a*i" (eri!& !f > #ears "$&er 1!th FRHL a$& ARHL i$

SBI . Re(a#e$t 'i)) $!t !r&i$ari)# e*te$& 1e#!$& #!"r a%e !f retiree$t #ears !f a%e, 'hiche+er is ear)ier.

RATE OF INTEREST

F!r re(a#e$t (eri!&

Fi*e& O(ti!$ f!r

)!a$s

ii= A1!+e > J "(t! ?

#ears?. ?.> . .>

iii= A1!+e ? J "(t!

#ears?.> ?.8> .> .8>

i+= A1!+e #rs J

"(t! > #rs.?.8> ??. .> ?.

The i$terest rate ca$ 1e fi*e& !r f)!ati$%O(ti!$ ca$ 1e cha$%e& fr! fi*e& t! f)!ati$% a$& +ice +ersa 'ith f)at char%es !f : fee !$

1a)a$ce !"tsta$&i$%.

Fi*e& i$terest rate 1e reset after a 1)!c- !f > #ear i$ res(ect !f )!a$s &is1"rse& !$ !r after

?.9.

DOCUMENTATION C/ARGES

Rs. ?> Ser+ice Ta*

UPFRONT FEE


48/65

F!r )!a$s "( t! Rs. )acs .>: !f the )!a$ a!"$t 'ith a ca( !f Rs. ,6

F!r )!a$s a1!+e Rs. )acs .: !f the )!a$ a!"$t

REPAYMENT

?. L!a$ is t! 1e re(ai& i$ e4"ate& !$th)# i$sta))e$ts 'ithi$ a (eri!& !f > #ears !r 1ef!rethe 1!rr!'er attai$s the a%e !f > #ears.

. Re(a#e$t !f )!a$ f!r re(air re$!+ati!$ a&&iti!$a)terati!$ has, h!'e+er 1ee$ restricte&

t! ? #ears. FatherM!ther ca$ a)s! 1e a&e c!61!rr!'er i$ cases (r!(ert# is i$ si$%)e $ae

!f his her s!$ a$& a)s! c)"11i$% !f their i$c!e is (eritte& f!r &eteri$i$% e)i%i1i)it#

criteria. Mi$i" @ a&+a$ce che4"e sh!")& 1e !1tai$e& as a$& 'he$, che4"es reai$,

fresh )!t t! 1e !1tai$e& !"t !f @, che4"es sh!")& 1e !f the a!"$t e4"a) t! the 1a)a$ce.

L!a$ is t! 1e re(ai& i$ EMI 'ithi$ a (eri!& !f > #ears !r 1ef!re the 1!rr!'er attai$s the a%e

!f > #ears.

SECURITY

M!rt%a%e !f (r!(ert# f!r 'hich fi$a$ce is 1ei$% %i+e$

I$ case !f ("rchase !f h!"se f)at fr! h!"si$% 1!ar& s!ciet# 'here !rt%a%e ca$$!t 1e

create& ie&iate)#, a tri(artite a%reee$t sha)) 1e e*ec"te& a!$%st the h!"si$% 1!ar&

s!ciet#, 1!rr!'er a$& the Ba$-

I$ case !f ("rchase !f h!"se f)at !$ first (!'er !f att!r$e#, a&&iti!$a) sec"rit# e4"a) t!

?>: !f the )!a$ a!"$t 1# 'a# !f !rt%a%e !f s!e !ther (r!(ert# !r ()e&%e !f 1a$-Qs

FDR LIC (!)ic# G!+t. Sec"rities, NSCs, KPs, IPs, PSU B!$&s etc. has t! 1e (r!+i&e&

FEATURES

L!a$ ca$ 1e sa$cti!$e& 1# 1ra$chh"1 $ear t! the (rese$t ()ace !f '!r-(!sti$% resi&e$ce !f

the 1!rr!'er.

L!a$ ca$ 1e sa$cti!$e& e+e$ if (r!(ert# is i$ the $ae !f 'ife(are$ts (r!+i&e& that the

!'$er is a&e c!61!rr!'er.

L!a$ ca$ 1e %ra$te& f!r $& h!"se i$ the sae cit#.

L!a$ ca$ 1e %ra$te& f!r ("rchase !f h!"se f!r re$ta) ("r(!se

F!r ta-e !+er, (erissi!$ !f hi%her a"th!rit# is $!t re4"ire&.

IMPORTANT CONDITIONS LOAN CANNOT BE GRANTED7

✓ F!r c!$str"cti!$ i$ U$6a"th!ri2e& c!)!$ies.

✓ If (r!(ert# is t! 1e "se& f!r c!ercia) ("r(!se.

✓ /ith!"t a((r!+e& Ma(.

PRE= PAYMENT C/ARGES

✓ Ni)6 I$ cases 'here the )!a$s are (re(ai& 1# the 1!rr!'er fr! their !'$

s!"rces


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The C!r(!rate Ba$-i$% Gr!"( c!$sists !f &e&icate& Strate%ic B"si$ess U$its that cater

e*c)"si+e)# t! s(ecific c)ie$t %r!"(s !r s(ecia)i2e i$ (artic")ar (r!&"ct c)"sters. F!re!st

a!$% these a s(ecia)i2e& %r!"( is the C!r(!rate Acc!"$ts Gr!"( >, the c!$tr!))i$% i$terest i$ the I(eria) Ba$- !f I$&ia 'as ac4"ire& 1# the

Reser+e Ba$- !f I$&ia a$& the State Ba$- !f I$&ia A'ar&s f!r !"r schees.

SBI Ca$ $ea'hes !h$ee "&ll&on "&les!ones3

SBI Car&, a 0!i$t +e$t"re 1et'ee$ State Ba$- !f I$&ia a$& GE M!$e#, a$$!"$ce& #et a$!ther )a$&ar- achie+ee$t !f cr!ssi$% the three i))i!$ car&h!)&ers6ar-s. R!!(a Astha$a,


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CEO6SBI Car&, sai&, VThis i)est!$e is e+e$ !re rear-a1)e as 'e ha+e a&&e& !$e i))i!$

car&h!)&ers i$ 0"st te$ !$ths. O"r !10ecti+e is t! acce)erate the (ace !f %r!'th 1# e*te$&i$%

the 1e$efits t! a 1r!a&er ra$%e !f c!$s"ers i$ Tier II cities, a)!$% 'ith i(r!+e& +a)"e

(r!(!siti!$s f!r the "r1a$ aff)"e$t c"st!ers.V SBI Car& rece$t)# si%$e& "( I$&ia$ cric-eter

"+ra0 Si$%h as its 1ra$& a1assa&!r.

SBI o&ns Ch&nese *ank !o !ou'h ;9 *$an'hes3

P"1)ic sect!r State Ba$- !f I$&ia !$ S"$&a# 1ecae !$)# the sec!$& 1a$- i$ the '!r)& t!

ha+e ?, 1ra$ches 'he$ U$i!$ Fi$a$ce Mi$ister P Chi&a1ara i$a"%"rate& its )atest

1ra$ch here. S(ea-i$% !$ the !ccasi!$, Chi&a1ara sai& Chi$aQs ICBC Ba$- 'as the !ther

1a$- t! ha+e ?, 1ra$ches. O(e$i$% ?, 1ra$ches 'as a %reat feat. VIt is $!t a$ eas#

i)est!$e th!"%h the SBI 'as the 1a$- !f the %!+er$e$t a$& I$&ia$ (e!()e e+e$ 1ef!re

!ther 1a$-s 'ere $ati!$a)ise&,V he sai&. Pe!()e a)) !+er the '!r)&, i$c)"&i$% the Chi$ese,'!")& $!' -$!' a1!"t this sa)) +i))a%e 'here the ?th 1ra$ch !f the SBI ha& 1ee$

!(e$e&, he sai& a&&i$% the# '!")& 1e aa2e& 1# the 1a$-Qs %r!'th. The 1a$- sh!")& 1e

(r!"& !f the achie+ee$t he sai& a$& 'ishe& that the 1a$- !(e$e& !$e )a-h 1ra$ches. The

Mi$ister sai& !"t !f the !+er ? cr!re (e!()e, se+e$t# 8> (er ce$t &i& $!t ha+e a$# t#(e !f

i$s"ra$ce. Sii)ar)#, > (er ce$t !f the ?? cr!re farers &i& $!t ha+e 1a$- acc!"$t. Ba$-s

sh!")& %! t! the (e!()e a$& e$r!)) the as acc!"$t h!)&ers. QThat is 'hat ec!$!ists sa# is

fi$a$cia) i$c)"si!$,Q he sai&.

Ma&n SBI /o"e Loan S'he"es

✓ SBI Real!# 7 P"rchase !f ()!t !f )a$&

✓ SBI O1!&"a 7 L!a$ t! e*isti$% h!e )!a$ 1!rr!'ers

✓ SBI G$een /o"e Loan 7 F!r h!es that fi%ht a%ai$st the a&+erse c)iate

cha$%e, SBI !ffers .>: c!$cessi!$ i$ i$terest rate a$& 'ai+er !f (r!cessi$% fees

✓ SBI Fle5& 7 C!1i$ati!$ !f f)!ati$% a$& fi*e& i$terest rate, i$ a (re

&eteri$e& rati!

✓ NRI /o"e Loans 7 L!a$s f!r NRIs a$& PIOs

✓ SBI F$eeo" 7 P)e&%i$% !ther fi$a$cia) sec"rit# tha$ !rt%a%i$% the h!"se

✓ SBI Ma5 Ga&n 7 O(erate #!"r h!e )!a$ acc!"$t )i-e #!"r SB !r C"rre$t

Acc!"$t

PRODUCT RANGE OF COMPANY>INDUSTRY3

The (r!&"cts a$& ser+ices (r!+i&e& 1# the SBI are i$ +ari!"s fie)&s, s"ch as7

Ba$-i$% ser+ices

NRI ser+ices


C!r(!rate 1a$-i$% A%ric")t"ra) 1a$-i$%


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SBI /OUSING LOAN

Fea!u$es

✓ SBI H!e L!a$ (r!+i&es $! ca( !$ a*i" )!a$ a!"$t f!r the

("rchasec!$str"cti!$ !f h!"sef)at.

✓ There is a$ !(ti!$ t! c)"1 the i$c!e !f the a(()ica$tQs s(!"se a$& chi)&re$ t!

c!("te the e)i%i1)e )!a$ a!"$t.

✓ The 1a$- (r!+i&es free (ers!$a) acci&e$t i$s"ra$ce c!+er.

✓ A c!()ie$tar# i$ter$ati!$a) ATM c" De1it car& is a)s! (r!+i&e& 1# SBI.

✓ O$ the s(!t Vi$ (ri$ci()eV a((r!+a) is a s(ecia) (r!+isi!$ f!r the a(()ica$t.

✓ If a)) the re4"ire& &!c"e$ts are s"1itte& 1# the a(()ica$t, SBI H!e L!a$

is sa$cti!$e& 'ithi$ &a#s !f the &ate !f s"1issi!$.

✓ The a(()ica$t ca$ a)s! c!$si&er SBIQs H!e L!a$ as a Ter L!a$ !r as a$O+er&raft faci)it#, i$ case heshe 'a$ts t! sa+e !$ i$terest a$& a*ii2e %ai$s.

✓ SBI H!e L!a$ a)s! (r!+i&es free (ers!$a) acci&e$t i$s"ra$ce c!+er "( t! Rs

@ La-hs.

✓ Re(a#e$t is (eritte& "( t! 8 #ears !f a%e, 'hich is a$ a&&e& a&+a$ta%e !f

SBI H!e L!a$.

SC/EMES PROVIDED BY SBI

The M!st Preferre& H!e L!a$ (r!+i&er SBI Ba$- !ffers a H!e L!a$ 'ith Attracti+e

I$terest Rates 'ith Latest Schees a$& Be$efits. SBI a)s! (r!+i&es a H!"si$% )!a$ 'ith&iffere$t schees. Schees Are76

?. SBI Eas# H!e L!a$

. SBI A&+a$ta%e H!e L!a$

. SBI H!"si$% Fi$a$ce Schee

@. SBI Ha((# H!e L!a$s

>. SBI Life St#)e L!a$

. SBI Gree$ H!e L!a$

8. SBI H!e P)"s

9. SBI H!e Li$e

. SBI M HOME CAMPAIGN

PRODUCTS

QSBI6F)e*iQ H!e L!a$s are &esi%$e& t! e$a1)e 1!rr!'ers t! he&%e their H!e L!a$ a%ai$st

"$fa+!ra1)e !+ee$t i$ i$terest rates a$& %i+es the c"st!ers a !$e tie irre+!ca1)e !(ti!$

t! ch!!se !$e !f the three c"st!i2e& c!1i$ati!$s !f fi*e& a$& f)!ati$% i$terest rates.

QSBI6Free&!Q H!e L!a$s are c"st!i2e& f!r hi%h $et '!rth i$&i+i&"a)s a$& !ffer 1e$efits

s"ch as ? (er ce$t fi$a$ce !f the (r!0ect a$& $! !rt%a%e !f the (r!(ert#, (r!+i&e& thei$&i+i&"a) c!")& sh!' )i4"i& sec"rities s"ch as LIC (!)icies !r NSCs.

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ELIGIBILITY

The i$i" a%e !f the a(()ica$t is ?9 #ears, !$ the &ate !f the sa$cti!$ !f the )!a$. The

a*i" a%e )iit f!r a H!e L!a$ a(()ica$t is 8 #ears. It is the a*i" a%e )iit,

'ithi$ 'hich the )!a$ sh!")& 1e f"))# re(ai&. The a(()ica$t sh!")& c!$sist !f s"fficie$t,

re%")ar a$& c!$ti$"!"s s!"rce !f i$c!e f!r re(a#i$% the )!a$.

DOCUMENTS

C!()ete& A(()icati!$ F!r 'ith !$e Pass(!rt Si2e Ph!t!%ra(h

I&e$tit# Pr!!f 6 the a(()ica$t ca$ a-e "se !f hisher PAN Car&!ter ID Pass(!rtDri+i$%

Lice$se, f!r the ("r(!se.

Resi&e$ce Pr!!f 6 the a(()ica$t ca$ a-e "se !f hisher Rece$t Te)e(h!$e Bi)) E)ectricit#Bi))Pr!(ert# ta* recei(tPass(!rt!ters ID

Pr!!f !f 1"si$ess a&&ress i$ res(ect !f 1"si$ess(ers!$s i$&"stria)ists

Sa)e Dee&, A%reee$t !f Sa)e, Letter !f A))!te$t, N!$ E$c"1ra$ce Certificate,

La$&B"i)&i$% Ta* (ai& recei(t etc.

C!(# !f A((r!+e& P)a$ a$& a((r!+a) fr! the L!ca) B!

Statee$t !f Ba$- Acc!"$t Pass B!!- f!r )ast !$ths

INTEREST RATE %SBAR &s 'u$$en!l# ;;-,

Yea$ ; 6 9: fi*e&Yea$ 6 H )a-hs, .8>: f)!ati$%

El&4&*&l&!# C$&!e$&a H Do'u"en!a!&on $eu&$e )o$ SBI /o"e Loan

Sala$&e Sel) e"1lo#e

A%e ?#ears t! #ears ?#ears t! 8#ears

I$c!e Rs.?,, #ears6#ears >#ears6#ears

C"rre$t

E*(erie$ce#ears #ears

D!c"e$tati!$ ?= A(()icati!$ f!r 'ith

(h!t!%ra(h

= I&e$tit# J resi&e$ce (r!!f

= Last !$ths sa)ar# s)i(

@= F!r ?

?= A(()icati!$ f!r 'ith (h!t!%ra(h

= I&e$tit# J resi&e$ce (r!!f

= E&"cati!$ 4"a)ificati!$s certificate J

(r!!f !f 1"si$ess e*iste$ce

@= B"si$ess (r!fi)e,

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>= Last !$ths 1a$- sa)arie&

cre&it statee$ts

= Pr!cessi$% fee che4"e

>= Last #ears (r!fit)!ss J 1a)a$ce

sheet

= Last !$ths 1a$- statee$ts

8= Pr!cessi$% fee che4"e

O!he$ P$ou'!s )$o" SBI %S!a!e *ank o) In&a,

?= SBI Pers!$a) L!a$

= SBI Car&

= SBI H!e L!a$

@= SBI H!"si$% L!a$

LOAN TENURE

!" ca$ re(a# the )!a$ !+er a a*i" (eri!& !f > #ears "$&er 1!th FRHL a$& ARHL i$

SBI . Re(a#e$t 'i)) $!t !r&i$ari)# e*te$& 1e#!$& #!"r a%e !f retiree$t #ears !f a%e, 'hiche+er is ear)ier.

PROCESSING FEE

FEES RUPEES

U(t! > )a-h Rs. ?

>)a-h6?)a-h Rs.

?)a-h6)a-h Rs. >

)a-h6>)a-h Rs. 8

>)a-h6?cr!re Rs.9

?cr!re6>cr!re Rs.?,

A1!+e > cr!re Rs.,

PREPAYMENT C/ARGES

If (ai& fr! !'$ s!"rce6 Ni),

I$ !ther cases6 : !$ (ri$ci(a) a!"$t (re(ai&

LATE PAYMENT C/ARGES

If (ai& fr! !'$ s!"rce6 Ni),I$ !ther cases6 : !$ (ri$ci(a) a!"$t (re(ai&

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the !ri%i$ati!$ (r!cess a$& !&if#recast &e)i$4"e$t )!a$s i$ !r&er t! -ee( the c)assifie& as

Vc"rre$tV W Cha$%es i$ the a((raisa) (r!cess 'hich has )e& t! 'i&es(rea& !+er

a((raisa)!+er6+a)"ati!$ (r!1)es If these tre$&s reai$ i$ ()ace, it is )i-e)# that the h!e

("rchase 1!! !f the (ast &eca&e 'i)) c!$ti$"e "$a1ate&. Des(ite the i$creasi$%)# !re

&iffic")t ec!$!ic e$+ir!$e$t, it a# 1e (!ssi1)e f!r )e$&ers t! f"rther ease cre&it sta$&ar&s

a$& !re f"))# e*()!it )ess (e$etrate& ar-ets. Rece$t)# tar%ete& (!(")ati!$s that ha+e

hist!rica))# 1ee$ &e$ie& h!e!'$ershi( !((!rt"$ities ha+e !ffere& the !rt%a%e i$&"str#

$!+e) h"r&)es t! !+erc!e. I$&"str# (artici(a$ts i$ c!1i$ati!$ 'ith ease& re%")at!r#

sta$&ar&s a$& the s"((!rt !f the GSEs


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e$f!rcee$t (riari)# i$ ters !f f!rec)!s"re )a' a$& i$stea& sh!")& i$c)"&e !ther &e1t!r6

cre&it!r )a's s"ch as 1a$-r"(tc#, i$&"str# )!ss iti%ati!$ eff!rts, a$& thir&6(art#

i$ter+e$ti!$s s"ch as &e)i$4"e$c# h!"si$% c!"$se)i$%. I$ ters !f a$a)#2i$% this frae'!r-,

it is te(ti$% t! f!c"s !$ its i(act !$ !rt%a%e cre&it c!st a$& access !r !$ the a1s!)"te

$"1er !f h!es te(!rari)# sa+e&, 1"t # (r!(!se& a$a)#sis is 1ase& !$ 'hether the

s#ste h!$!rs a$& f"rthers the %!a)s !f 'ea)th 1"i)&i$%, (!siti+e s!cia) (s#ch!)!%ica) states,

a$& c!"$it# &e+e)!(e$t. Beca"se th!se e$&s are $!t i$e*!ra1)# )i$-e& t! !'$ershi(

%e$era))# !r !'$i$% a (artic")ar h!e, a s#ste !f &e)i$4"e$c# a$a%ee$t that h!$!rs

these !10ecti+es sh!")& stri+e t! (r!+i&e fair, tra$s(are$t, h"a$e, a$& (re&icta1)e strate%ies

f!r h!e e*it as 'e)) as f!r h!e rete$ti!$. A)th!"%h !re e(irica) research is $ee&e&, this

essa# starts the (r!cess !f a$a)#2i$% !rt%a%e &e)i$4"e$c# a$a%ee$t t!!)s i$ the

(r!(!se& fashi!$.

8= I$ ? !-! M!rii2"i ha& st"&ie& a1!"t the C"rre$t /ea)th, H!"si$% P"rchase a$&Pri+ate H!"si$% L!a$ Dea$& i$ a(a$. a(a$ese h!"seh!)&s acc"")ate 'ea)th f!r &!'$

(a#e$ts at a hi%h rate. Theref!re, c"rre$t 'ea)th ()a#s a$ i(!rta$t r!)e i$ h!e

ac4"isiti!$ as ("1)ic )!a$s 'h!se &irect !rt%a%e )e$&i$% is a str!$% s"((!rt f!r h!e

("rchasers. /e estiate the 'ea)th effect !$ (ri+ate !rt%a%e &e1t as 'e)) as h!"si$%

c!$s"(ti!$ 1# a(()#i$% a !&e) 'here !rt%a%e &e1t &ea$& is &eri+e& fr! h!"se

("rchase &ecisi!$s a$& is &eteri$e& 0!i$t)# 'ith h!"si$% c!$s"(ti!$. /e "se a

si")ta$e!"s e4"ati!$ T!1it estiati!$ eth!&. /ea)th effects !$ (ri+ate !rt%a%e &e1t,

)i-e)ih!!& !f 1!rr!'i$%, a$& h!"si$% c!$s"(ti!$ are $!t e)astic. O$ the !ther ha$&, a

cha$%e i$ h!"si$% c!$s"(ti!$ affects the )i-e)ih!!& !f 1!rr!'i$% e)astica))# "ch !retha$ the (ri+ate !rt%a%e a!"$t !f 1!rr!'ers. H!"si$% a$& (ri+ate !rt%a%e ar-ets

f)"ct"ate +er# c)!se)# 'ith the $"1er !f (artici(a$ts i$ the !rt%a%e ar-et. Theref!re, the

$"1er !f h!"si$% starts is )i$-e& str!$%)# t! the (ri+ate !rt%a%e ar-et.

9= R!1ert B. A+er# a$& A))e$ N. Ber%er ha& st"&ie& a1!"t the L!a$ c!ite$ts a$& 1a$-

ris- e*(!s"re. The# st"&ie& a1!"t the L!a$ c!ite$ts i$crease a 1a$-Qs ris- 1# !1)i%ati$%

it t! iss"e f"t"re )!a$s "$&er ters that it i%ht !ther'ise ref"se. H!'e+er, !ra) ha2ar& a$&

a&+erse se)ecti!$ (r!1)es (!te$tia))# a# res")t i$ these c!$tracts 1ei$% rati!$e& !r s!rte&.

De(e$&i$% !$ the re)ati+e ris-s !f the 1!rr!'ers 'h! &! a$& &! $!t recei+e c!ite$ts,

c!ite$t )!a$s c!")& 1e safer !r ris-ier !$ a+era%e tha$ !ther )!a$s. the e(irica) res")ts

i$&icate that c!ite$t )!a$s te$& t! ha+e s)i%ht)# 1etter tha$ a+era%e (erf!ra$ce,

s"%%esti$% that c!ite$ts %e$erate )itt)e ris- !r that this ris- is !ffset 1# the se)ecti!$ !f

safer 1!rr!'ers.

= S"it A%ar'a),S!"(ha)a Ch!sise$%(het a$& !h$ C. Drisc!)) ha& st"&ie& a1!"t the

L!a$ c!ite$ts a$& (ri+ate firs- The# st"&ie& that9 !st )!a$s are i$ the f!r !f cre&it

)i$es. E(irica) st"&ies !f )i$e &ea$& ha+e 1ee$ c!()icate& 1# their "se !f &ata !$

("1)ic)# tra&e& firs, 'hich ha+e a 'i&e e$" !f fi$a$ci$% !(ti!$s. /e a+!i& this (r!1)e

1# "si$% a "$i4"e (r!(rietar# &ata set fr! a )ar%e fi$a$cia) i$stit"ti!$ !f )!a$ c!ite$tsa&e t! 8? (ri+ate)#6he)& firs. /e test Marti$ a$& Sa$t!er!Qs


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)i$es %i+e firs the s(ee& a$& f)e*i1i)it# t! ("rs"e i$+este$t !((!rt"$ities. O"r fi$&i$%s are

c!$siste$t 'ith their (re&icti!$s. Firs faci$% hi%her rates a$& fees ha+e sa))er cre&it )i$es.

Firs 'ith hi%her %r!'th c!it t! )ar%er )i$es !f cre&it a$& ha+e a hi%her rate !f )i$e

"ti)i2ati!$. Firs e*(erie$ci$% !re "$certai$t# i$ their f"$&i$% $ee&s c!it t! sa))er

cre&it )i$es. A)!st a)) firs c!$+ert "$"se& cre&it )i$e (!rti!$s i$t! s(!t )!a$s a$& ta-e !"t

$e' )i$es.

?= Fai- K!ra# a$& Eric T. Hi))e1ra$& ha& st"&ie& a1!"t the I$terest Rate !)ati)it# a$&

H!e M!rt%a%e L!a$s. The# st"&ie& that The U.S. ec!$!# has e*(erie$ce& s"1sta$tia)

f)"ct"ati!$s i$ rea) a$& $!i$a) i$terest rates si$ce the ?8s. This (a(er i$+esti%ates

e(irica))# the re)ati!$shi( 1et'ee$ h!e !rt%a%e )!a$s a$& +!)ati)it# i$ !rt%a%e rates

f!r the (eri!& ?8?7 thr!"%h 7. C!$trar# t! c!!$ 'is&!, 'e fi$& a (!siti+e

re)ati!$shi( 1et'ee$ !rt%a%e rate +!)ati)it# a$& h!e !rt%a%e )!a$s. F"rther i$+esti%ati!$

i$&icates that this is &"e t! +!)ati)it# i$ the 1!$& ar-et. I$ ties !f hi%h i$terest +!)ati)it#,h!"seh!)&s &isi$+est i$ %!+er$e$t sec"rities a$& i$+est i$ rea) assets, 'hich #ie)& a (!siti+e

re)ati!$shi( 1et'ee$ !rt%a%e rate +!)ati)it# a$& h!e !rt%a%e )!a$s.

??= I$ $!+e1er Miche))e . /hite a$& Ei)# . Li$ ha& st"&ie& a1!"t the Ba$-r"(tc#

a$& the Mar-et f!r M!rt%a%e a$& H!e I(r!+ee$t L!a$s. The# st"&ie& that this (a(er

i$+esti%ates the re)ati!$shi( 1et'ee$ 1a$-r"(tc# e*e(ti!$s a$& the a+ai)a1i)it# !f cre&it f!r

!rt%a%e a$& h!e i(r!+ee$t )!a$s. /e &e+e)!( a c!1i$e& !&e) !f &e1t!rsQ &ecisi!$s

t! fi)e f!r 1a$-r"(tc# a$& t! &efa")t !$ their !rt%a%es a$& sh!' that the the!r# (re&icts

(!siti+e re)ati!$shi(s 1et'ee$ 1!th the h!estea& a$& (ers!$a) (r!(ert# e*e(ti!$ )e+e)sa$& the (r!1a1i)it# !f 1!rr!'ers 1ei$% &e$ie& !rt%a%e (erce$ta%e (!i$ts !re )i-e)# t! 1e t"r$e& &!'$ f!r h!e i(r!+ee$t

)!a$s if the# )i+e i$ states 'ith "$)iite& rather tha$ )!' h!estea& e*e(ti!$s. These

re)ati!$shi(s a)s! h!)& 'he$ 'e i$tr!&"ce state fi*e& effects i$t! the !&e).

?= I$ Oct!1er ?@, 9 Da+i& P. Ber$stei$ ha& st"&ie& a1!"t the H!e E4"it# L!a$s a$&

Pri+ate M!rt%a%e I$s"ra$ce7 Rece$t Tre$&s J P!te$tia) I()icati!$s. The# st"&ie& a1!"t the

i(act !f i$crease& "se !f h!e e4"it# )i$es a$& &ecrease& (ri+ate !rt%a%e i$s"ra$ce


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fi+e fi$a$cia) characteristics


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&eteri$a$ts !f the i$ter$ati!$a) (atter$ !f h!e !'$ershi( "si$% the L"*e1!"r% I$c!e

St"


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CONCLUSION

The I$&ia$ c"st!er has c!e a )!$% 'a# fr! ("rchasi$% t! f")fi))i$% their $ee&s fr!

1"#i$% a h!"se c"st!ers $!' %ra1 e+er#thi$% that c!es their 'a# 1"t the# &! their !'$

s"r+e# !f !(ti" )!a$s sae is the case 'ith 1a$-s J h!"si$% )!a$s. /ith i$$"era1)e

ch!ices 1ef!re hi, the c"st!er is $ee&e& the$ -i$%. It is theref!re i(erati+e that if the

1a$- has t! s"ccee& i$ c!(etiti+e '!r)&, it sh!")& 1e tech$!)!%ica) starr#. C"st!er ce$tric

(r!%ressi+e &ri+e$ 1# hi%hest sta$&ar& !f c!!(erati+e %!+er$a$ce J %"i&e& 1# s!"$& ethica)

+a)"es J a1!+e a)) sh!")& ha+e (ers!$a)i2e& c"st!er ser+ices. There is sc!(e !f e*()!iti$%

the +ast i&&)e i$c!e %r!"( 1# re)easi$% )!a$s 'ith s(ecia) i$terest rate, 'hich '!")& 1e

1e$eficia) t! 1!th (arties.


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RECOMMENDATION

The f!))!'i$% s"%%esti!$s are str!$%)# rec!e$&e&7

✓ T! 1r!a&e$ the c"st!er 1ase the +ast i&&)e i$c!e strata sh!")& 1e f"))#

e*()!ite&.

✓ Si()if# the (r!ce&"re, re&"ce ser+ice char%es J &ea$& !$)# the 1asic

esse$tia) (r!!f.

✓ M!st 1a$-s are re)"cta$t t! a&+a$ce )!a$ t! the ser+ice c)ass. E.%. )a' #ears,

(!)ice !fficers etc. this as(ect "st 1e e*()!ite&.

✓ A&!(ti!$ !f f)e*i1)e J !re )e$ie$t (e$a)t# sh!")& the

✓ C"st!er fai)s t! &e(!sit the (a#e$t !$ tie. The (e$a)t# sh!")& 1e case t!

case 1asis rather tha$ the sae f!r the e$tire c"st!er 1ase.✓ Restricti!$ t! 1e re&"ce& t! 1are i$i" f!r )!a$ a&+a$ces J f!r

re(a#e$t. F!r e.%. !ffers L!$% ter re(a#e$t faci)ities J ha+e $! a%e restricti!$ t!

ch!!si$% re(a#e$t. The a*i" a%e f!r re(a#e$t c!")& 1e i$crease t! >68

#ears !f a%e. S"ch faci)it# 'i)) %r!' fast retai) se%e$t !f the 1a$-.

✓ Offer ")ti()e re(a#e$t )!a$s ser+ices. C)ass t! 1e e*()!ite& 1# !fferi$%

s(ecia) re&"ce&

✓ Rates J )i$-i$% the re(a#e$t fr! the s!"rce 'here the (a# che4"e t! the

e()!#ee is iss"e&. This $ee& t! "$&er%! s(ecia) c!$tract 'ith %!+er$e$t

!r%a$i2ati!$ t! e$s"re i()ee$tati!$.