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MBA - 3RD SEM ROLL NO.7811012

This project report is the result of my 6 weeks of on job summer training internship is an integrated part of the MBA course which the students has to perform and its aim at providing a firsthand experience of the industry to the students. This practical experience helps the student to view the real business world closely, which in turn widely influences their conceptions and perceptions about the corporate world. In order to make students competent all the students are required to take a real time project work under summer training in the MBA curriculum .Project work not only helps to understand but also practicality goes on in the corporate world and correlate the theoretical concepts better which remains undiscovered in the classrooms . I had make discussion with my training guide and he assigned me the project COMPARATIVE ANALYSIS OF HOUSING LOANS OF HDFC LTD. WITH OTHER BANKS it requires a lot of extensive study to gather the information .It provided me a great deal of exposure and I found practical work totally different from that of theoretical.


This report is the result of my management training in HDFC Ltd. I hereby declare that the project report title COMPARATIVE ANALYSIS OF HOUSING LOANS OF HDFC LTD. WITH OTHER BANKS submitted in the partial fulfillment of requirement for the degree of master of business administration. This report is a bonafide research work carried about by me. No part of this report has been submitted for the award on any other diploma, degree, fellow ship or other similar title of prize. The report is based on my personal opinion hence cannot be referred to for official or legal purpose.



I am grateful thanks to MR. GAURAV BAJAJ ( H.O.D. SHREE RAM INSTITUTE OF MANAGEMENT) MISS KAMYA for their guidance and a valuable suggestion. This project involves many helping hands and I would like thanks to all those, who help me in completion the project and bringing out the timely submission of the report. I am extremely grateful to faculty members for their whole hearted co-operation. Above all no words can express feeling of gratitude for my guardians, Parents and my friends, who supported me all through my project report. On the whole this Achievement is entirely due to the moral support and blessing at my parents and Teachers.






INTRODUCTION:Housing Development Finance Corporation Limited , founded 1977 by Ravi Maurya and Hasmukhbhai Parekh, is an Indian NBFC, focusing on home mortgages. HDFC's distribution network spans 243 outlets that include 49 offices of HDFC's distribution company, HDFC Sales Private Limited. In addition, HDFC covers over 90 locations through its outreach programmes. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also Shacked through HDFC Sales, HDFC Bank Limited and other third party Direct Selling Agents (DSA). HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new business premium income at Rs. 1,624 Crores. The company has covered over 8, 77, 000 lives year ending March 31, 2010. HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing company in India for the last 27 years. SNAPSHOT-I Incorporated in 1977 as the first specialized Mortgage Company in India.

Almost 90% of initial shareholding in the hands of domestic institutes and retail Besides the core business of mortgage HDFC has evolved into a financial conglomerate with holdings In:

investors. Current 77% of shares held by foreign institutional investors.

CHART:- 6.1




23.26% HDFC BANK (inclusive

HDFC Standard Life insurance Company- HDFC holds 72.26 %. HDFC Asset Management Company HDFC holds 60% HDFC Bank- HDFC holds 23.26%. Intel net Global (Business Process Outsourcing) HDFC holds 50%. HDFC Chubb General Insurance Company HDFC holds 74%

BOARD OF DIRECTORS:Mr. D S Parekh - Chairman Mr. Keshub Mahindra - Vice Chairman Ms. Renu S. Karnad - Executive Director Mr. K M Mistry - Managing Director Mr. D N Ghosh Dr. S A Dave Mr. S Venkitaramanan Dr. Ram S Tarneja

Mr. Shirish B Patel Mr. B S Mehta

Mr. N M Munjee Mr. D M Satwalekar

GROUP COMPANIES: HDFC Bank: World Class Indian Bank- among the top private banks in India. HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager. Intel net Global: BPO services for international customers. CIBIL: Credit Information Bureau India Limited. HDFC Chubb: Upcoming Private companies in the field of General Insurance. HDFC Mutual Fund HDFC reality.com: Helps to search properties in all major cities in India HDFC securities HDFC Standard Life Insurance Company Ltd Aug, 2000

ORGANISATIONAL GOALS:HDFC's main goals are toa) develop close relationships with individual households, b) maintain its position as the premier housing finance institution in the country, c) transform ideas into viable and creative solutions, d) provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off existing client base. In addition to home building loans, HDFC also offers home extension, home improvement and home conversion loans. It also helps to identify and value properties. HDFC also offers depository services in form of term deposits.

Types of Products offered

HDFC provide loans to meet all your requirements for you to make that house a home. Home Improvement Loan Home Extension Loan Loans to professionals for office or clinic. Home Equity Loans (Loan Against Property) Loan against Rent receivables \ Short Term Bridging Loan. Loans to professionals for non-residential premises loan

HDFC HOME LOAN ADVANTAGE : Home loan counseling sharing over 30 years of home loan experience Door step service Helps in finding Dream home Wide Product Range Multiple Repayment Option Wide Network of financing


ICICI Bank was the first bank in India to launch an international debit card in association with VISA ( Visa Electron) and issues the master cards, maestro debit card as well. The debit card allows the user to directly debit his account at the point of purchase at a merchant establishment in India and overseas. The bank launched its credit card in association with VISA in November 2000. the bank is bowel positioned as a leader in various net-based B2C opportunities including a wide range of internet banking services

Promoters :
ICICI is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1985, the corporation has maintained a consistent and healthy growth in its operations to remain the clear market leader in mortgages and banking services in India. Its outstanding loans portfolio covers over a million dwelling units. ICICI has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base, unique consumer franchise, ICICI was ideally positioned to promote a bank in the bank environment.

Business Focus
ICICI banks mission is to be a world class Indian bank. The banks aim is to build a sound customer franchisee across Distinct business so as to be the preferred of banking services in the niche segment that the bank operates in and to achieve healthy growth in profitability, consistent with the banks risk appetite. The bank aims to ensure the highest level of ethical standards, professional integrity and regulatory compliance. ICICI banks

business philosophy is based on four core values : operational excellence ,customer focus, product leadership and people.

Capital structure
The authorized capital of ICICI bank is Rs. 450 crores. The ICICI group holds 24.5% of the banks issue of American depository in respect in banks issue of American depository shares (ADS/ADR Issue).the Indian private equity fund, Mauritius(IPEF) and Indochina financial holdings ltd. Mauritius(IFHL) (both funds advise by j p Morgan partners , Formerly chase capital partners)together hold about 11.6% of the banks equity. Roughly 18% of the equity is held by fells. NRIs /OCBs while the balance is widely held by about 3,00,000 shareholders. The shares are listed on the stock exchange, Mumbai and the national stock exchange. This banks American depository shareware listed on the New York Exchange under the symbol HDB.

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted By Bennett, Coleman & Co. / Times Group) was merged with ICICI Bank Ltd, effective February 26, 2000 .As per the Scheme of amalgamation approved by the shareholders of both Banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of ICICI bank for very 5.75 shares of Times bank. The amalgamation added significant value to ICICI bank in terms of increased branch network , expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross- sell and leverage alternative delivery channels .

Distributed Network
ICICI Bank is head quartered in Mumbai. The bank at present has an enviable network of over 240 branches spread over 128 cities all across the country. All branches are linkers on an online real time basis. Customers in 39 locations are also serviced through Internet Banking. He banks expansion plans take in to account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer vase. Being a clearing /settlement bank to

various leading stock exchanges, the bank has the branches in the centers where the NSE/BSE has a strong and active member base.

Mr. Garget Kapoor took over as the banks chairman in July 2001. Prior to this, Mr.Capoor was a Deputy Governor of the Reserve Bank of India. The managing director Mr. Aditya Puri, has been a professional banker for 20 years, and before joining ICICI bank in 1994 was heading city Banks Operation in Malaysia. The Banks Board of director is composed of eminent individuals with a wealth of experience in public policy and commercial banking. Senior executive representing ICICI and J P Morgan, Partners (Formerly Chase Capital Partner) are also on the board.

ICICI bank operates in highly automated environment in terms of information technology and communication system. All the bank branches have connectivity which enable the bank to offer speedy funds transfer facilities to it customers..Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs)

Business profile
ICICI Bank caters to a vide range of banking services covering both commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. The bank has 3-key business areas.

A) Whole-sale Banking Services

The banks target market is primarily large, blue chip manufacturing companies in Indian corporate sector and to A small extent, emerging mid-signed corporate. For these Corporate. The bank provides a vide range of banking service including working capital finance , trade services, traditional services, cash management etc. based on its superior product delivery/ services levels and strong customer orientation, bank had made

significant in roads into the banking consortia of a number of leading corporate including multinational companies from the domestic business houses, and prime public sector companies .

B) Retail Banking services

The objective of the retail bank is to provide a full range of financial products and banking services, giving the customer A-one stock window for all its banking requirements. The Products are backed by World-Class service and delivered to the customer through various delivery channels including the branch networks as well as alternative delivery channels like ATMs, Phone Banking , Net Banking , and Mobile Banking .The ICICI Bank preferred program for High Net Worth Individuals, the ICICI Bank plus and the investment advisory Services programs have been designed keeping in mind needs.

C) Treasury operations
With in this business, the bank has three main product areas, foreign change and derivatives, local currency, money market and Debt Securities and equities .With liberalization of the financial market in India corporate needs more sophisticated risk management information, advice and products structures. These and fine pricing on various treasury products are provided through the banks treasury team.

The Indian Rating agency, credit Analysis and research Ltd.(CARE) have rated ICICI Banks program for certificate of Deposits. The CDs are rated PR1+, which is the highest rating For short term investments indicating superior capacity for repayment.

Product Range
Saving Accounts: Apart from the usual facilities you get a free ATM card, Inter branch banking, netbanking, bill pay, phone banking, debit card and mobile banking, among others.

ICICI Bank Preferred:

A preferential saving accounts where you are assigned a Dedicated relationship manager, who is your one-point contact. You also get privilege like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free accounts and low interest rates on loans, to name a few.

Sweep in Account:
A Fixed deposit linked to your Saving Accounts. So, even if youre saving accounts runs a bit short, you can issue a cheque (or use your ATM card ). The money is automatically swept in from Your fixed deposit into your saving accounts.

Super Saver Account:

Gives you an overdraft facility up to 75% of your fixed deposits in an emergency, you can access your funds while you fixed deposits continues to earn high interest.

Demat Account:
Conduct hassle free transactions on your share. You can also Access your Demat Account on the interest innovative services for your convenience.

ICICI Bank Plus:

A pat from regular and premium current account us also Have ICICI bank plus a current account and then some more. You can transfer up to Rs. 50 lakh per month at no extra charge, between the four metros , get cash delivery /pickup to Rs. 25000/-, Home delivery of demand draft, at par cheques, outstation cheque clearance facility etc.

Phone Banking:
24-hours automated service.

ATM-24 Hour Banking:

A part from routine transactions you can also pay your utility bills and transfer funds at any of our ATMs across the country all year around.

Net Banking:
Access you account from anywhere in the world, at any time at your own convenience. You can also view your Demat account through Net Banking.

International Debit Card:

An ATM Card you can shop all over the country and in Over 140 countries. You can spend in any currency and pay in rupees.

Mobile banking:
Access you account on your mobile phone screen at no airtime cost. Use SMS technology to conduct your banking transaction from your cell phone.

Consumer Durable Loans:

To help you buy the best durable for your home

Intercity/ Inter-branch Banking:

Access your account from any of our 127 branches in 53 cities.

Personal Loans
Take a loan of up to Rs.3 lakh for wedding, education, and purchase of a computer or on exciting holiday.


Punjab National Bank with 4497 offices and the largest nationalized bank is serving its 3.5 crore customers with the following wide variety of banking services:

Corporate banking Personal banking Industrial finance Agricultural finance Financing of trade International banking Punjab National Bank has been ranked 38th amongst top 500 companies by The Economic Times. PNB has earned ninth position among top 50 trusted brands in India. Punjab National Bank India maintains relationship with more than 200 leading international banks worldwide. PNB India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.

PNB Online
Punjab National Bank of India is also a member of SWIFT and more than 150 PNB Branches are connected with terminals in Mumbai. It promotes "Any Time, Any Where Banking".

Punjab National Bank Housing Loan

Any individual can avail Punjab National Bank Housing Loan for any of the following purpose:

For construction of house. For purchase of house/ flat.

For purchase of house/ flat from the original allottee, i.e. on First Power of Attorney basis. For carrying out repairs/ renovation/ additions/ alterations in the existing house. Approximately 80% of the cost of project is sanctioned by PNB Housing Finance,

subject to a maximum of Rs. 50 lack. In case of carrying out repairs/ renovation/ additions/ alterations in the existing house, the ceiling is Rs. 5 lack. The loan is available for a period of 5 years to 20 years or before the borrowers attain the age of 65. PNB Mutual Fund PNB Mutual Fund services are distributed under the scheme of Principal PNB Asset Management Company from its assigned branches. The varieties of Punjab National Bank Mutual Fund are as under:

Principal Growth Scheme Principal balanced Fund Principal Income Fund Principal Income Fund - Short Term Debt Principal Cash management Fund Principal Index Fund Principal government Securities Fund

PNB Office Addresses

Head Office Punjab National Bank Street 7, Bhikaji Cama Place New Delhi 110066, India Tel : 91-11-26196486, 26102303 e-mail : website@pnb.co.inwww.pnbindia.com

For ATM related queries

Punjab National Bank ATM Card Centre, 5, Sansad Marg

New Delhi - 110001 Tel : 91-11 - 23352019 24 hours toll free PNB Call Centre number 1600 12 22

Once the research problem is formulated, I have undertaken an extensive literature survey. The literature survey conducted here includes the academic books, journals, and websites from internet: Kothari C.R.1:- He has revealed in his study the information regarding the basics of

research and research methodology, what are the different types of research designs, what is problem statement, what are the sources of data collection and what are the methods of data collection is given in this section. Goel D.K. & Goel Rajesh2:- he has stated the ratio analysis and its formulas to

calculate them, and stated the ways for comparative statement analysis. Panday I.M.3:- He has found out the tools for analysis of financial statements like

ratio analysis, cash flow analysis, and comparative statements. M. Y &. Jain P.K4:- He revealed information about the analysis of financial

statements & theory of financial analysis. MACHIRAJU.H.R.5:-He revealed the functioning of financial institutions and what

are the services they provide. Maheshwari, S.N.6:- In this study, he found out the ratio analysis as a tool to analyze

the financial statements of organization. Different ratios depict the position of firm in market. From it we find the many type ratios like as liquidity ratios, profitability ratios, solvency ratios etc.

NICE Journal of business7:- In her study, she has found out the various models for

research. Altman, E.I8.:-He has stated that the ratios are the best ways to know the soundness,

profitability of a firm as it can convert the huge data into small numerical form. Apropos the soundness of public sector banks9:- It has found out that soundness of

a firm can be revealed by using various ratios. Changing scenario of commercial banks10:- It revealed the current scenario of the

Indian commercial banks. 'Report of the Committee on Banking Sector Reforms11:- It has stated the current

situation of the Indian banking sector.


Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all gathering funds little by little to afford ones dream. Home is one of the things that everyone one wants to own. Home is a shelter to person where he rests and feel comfortable. Many banks providing home loans whether commercial banks or financial institutions to the people who want to have a home. HDFC-(Housing Development And Finance Corporation) Home Loan, India have been serving the people for around three decades and providing various housing loan according to their varied needs at attractive & reasonable interest rates. Owing to their wide network of financing, HDFC Housing Loans provides services at your doorstep and helps you find a home as per your requirements. Many banks are providing home loans at cheapest rate to attract consumers towards them. The more customer friendly attitude of these banks, currently offer to consumers cheapest loan over homes. In view of acute housing shortage in the country, and keeping in mind the social economic role of commercial banks in the present times, the RBI advised banks to encourage the flow of credit for housing finance. With the RBI reducing bank rate, the home loan market rates nose-diving by 50 basis points. The HDFC Bank and Standard chartered bank has become the first player in this sector to announce a housing loan for a 20 years period. No doubt it will enhance the end cost people to plan their house over longer duration now; it has been made easy for a person to buy that dream house which he dreamt of long ago. HDFC also provides with Home Improvement Loan for internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works,

tiling and flooring, grills and aluminum windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers). Status is that HDFC reduced home loan rates by 50 basis points for all its existing floating rate customers. 1.2 ADVANTAGES


The various benefits of home loans arising to the customers are:-


Attractive interest rates:The various banks offer attractive interest rates to boost and help their customers. Many banks provide loans on fixed or floating rates to facilitate consumers as per their needs.


Help in owning a home:The home availed by a person with the help of banks, because they provide technical and financial assistance to customers for owning their dream home.


No requirement of guarantor:The commercial banks now a day liberalize their laws regarding home loans. Some of banks dont even require the guarantor to grant loan to their consumers. They also make consumers free by reliving him to find a guarantor to complete the proceedings of availing loan.


Door-Step Services:These doors to step services are provided from enquiry stage to the final disbursement takes place such services are beneficial for customers in present busy life. Banks like ICICI bank and standard chartered bank provide door to step services to customers to borrow loan.


Loan period:- There are many banks, which provide maximum loan tenures
up to 15-20 years based on the loan amount and the credibility of customers. This relieves the customers to repay loan amount until a long period.


For accidental death insurance :Some banks provide free accidental death insurance with housing loan which is also beneficial for the customers. These benefits or advantages of home loans are responsible for making than so popular among customer that people who dont have their home and want to buy, they do it with home loan. Home loans help such persons in making their dream home.

1.2 DISADVANTAGES OF HOME LOANS:The main disadvantages of home loans are high lightened as below: (i) Delays in processing :Many times, there are huge delays in processing of providing home loans because various formulations to be fulfilled in this process. Due to these delays customers feel mentally as well as financially weak. (ii) Fluctuating interest rates:Some banks give home loans at floating rates, which fluctuate at Different intervals due to some reasons. These changes sometimes, may lead to increase in interest rate which will increase the cost of home loans to the customers (iii) High Cost:The public sector banks charge high processing cost for home loans sanctioning. They are forced to pay serious charges at various stages to fulfill the requirements. Some

consumers are not able to pay such charges so such people could not avail the benefits of home loan schemes. (iii) Problems in disbursement:There are many problems in disbursement of home loan amount. There is some delay in disbursement of loan amount to the customers due to legal formalities. This causes problems to the customers. These are limitations or disadvantages of home loans. But some times some banks charges high installments to repay loan amount. Such also causes problem to customers. These limitations can be removed by providing good and promote services to the customers.

1.4 DISBURSEMENT OF HOME LOANS:The every bank has its own procedure to disburse the loan amount among customers. After choosing your right home, the next step is disbursement of home loans. The loan amount is disbursed after identifying and selecting the property or home that are purchased and submit the requisite legal documents. In the disbursement of home loans a clear title and full verification to ensure that a person has full rights on his house. The 230A clearance of seller and /or 371 clearances from the appropriate authority of income tax are also needed. (I) Eligibility criteria:However, if one is a resident or non-resident individual who is planning to buy a house in India, one can apply for a home loan. If a person has decided to buy a property in the near future, he/she can apply for a loan before even selecting the property. Once the maximum amount to put into the property has been decided, the Housing Finance Institutions or Banks will let the customer know that how much he/she is eligible for and this helps to plan the budget. (ii) Conditions regarding co-applicants: -

All Housing Finance Institutions lay down conditions on who can be co-applicants. All co-owners to the property. Need to be co-applicants to the loan necessarily. These institutions do not permit minors to join in as either co-owner or as co-applicants because a minor is not eligible to enter into a contact as per law. They do not permit even friends or relatives who are not blood relatives to take a property jointly However, Income of coapplicants can be clubbed together to get higher loan eligibility. Given below is a Table that throws light on acceptable relationship of a co-applicant for clubbing of income. Income Clubbing of Co-applicants:- It is as follows:Combination Income Clubbing Husband-Wife: - Income of husband-wife can be clubbed. Parent - son: - It can be clubbed if only son is there but not if any male sibling exists. Brother-Brother: - If they are currently staying together and intend to stay together in the new property, then only, their income-can is clubbed for above purposes Brother-Sister: - No clubbing-is possible. Sister-Sister: - No clubbing is possible. Parent-Minor- Child: - No clubbing is possible in this case also.


General Terms and Conditions: -

The following are the terms and conditions applicable to the basic home loan product only. These are likely to change based on the variations of the home loan product. Typically, in general home loans, the following conditions are applicable:1) The loan to value ratio (LTV) cannot exceed a particular percentage. This differs from product to product and from one Housing Finance Institutional Bank (HFI/B) to another. The components of the value of the Property calculated here are covered under cost of property. 2) The maximum tenure of the bank is nominally fixed by HFI/Bs. However, HFls/Bs do provide for different tenures with different terms and conditions. 3) The installment that one pay is normally restricted to about-50-per cent of the monthly-gross income of the candidate.

4) The total monthly outflow towards all the loans that have been availed of, including the current loan is normally restricted to 50% of the gross monthly income. 5) One will be eligible for a loan amount which is the lowest as per one's eligibility. This is calculated as per the LTV norms, the HR, norms and the FOIR norms as mentioned above. 6) Most HFls/Bs considers the profile before they judge the repayment capacity. The judgment is based on age, qualifications, number of dependents, employment details, employer credentials, work experience, previous track record of repayment of any loans that have been availed of, occupation, the industry to which the candidate's business relates to, if he/she is self-employed, then the turnover in the last 3-4 years etc. 7) Some His/Bs insist on guarantees from other individuals for the repayment of the loan. In such cases, the customer has to arrange for the personal guarantee before the disbursement of the loan takes place. 8) The property should be technically clear before the HFIs/Bs disburses the loans amount. Most of institutions and banks have teams of technical experts who visit the site to get a technical report before the disbursement of loan. This is also beneficial to the customer as they check for the technical quality and compliance with local laws. 9) The property should be legally clear before one can avail of a disbursement of the loan amount. Housing-Finance Institutions /Banks (HFIs/Bs) take legal clearance from their lawyers before the disbursement of amount. This proves to be beneficial to the customers as a legal expert checks his/her documentation to ensure that he/she get a proper title to the property. 10) The disbursement of the loan is as per the progress of construction of the property unless it is a ready property in which case the disbursement will be by one single cheque. PEMI or simple interest on the loan amount disbursed to the customer in case of a part disbursement will be payable by the customer on the disbursement. 11) The disbursement in most cases will be favoring the builder or the seller or the society or the development authority as the case may be. The disbursement will come in the customer's favor under special circumstances only. 12) The repayment of loan can be made either through deduction against salary, postdated cheques, standing instructions or Auto debit instructions to bank.

13) The principle is amortized either on annual reducing or monthly reducing basis as the case may be. The above terms and conditions are generally true for most Housing finance Institutions/Banks with respect to the general Home Loans. However, the specific terms and conditions vary with respect to special Housing Finance Institutions or Banks. (iv) Charges applicable to home loans:The different kinds of charges applicable to home loans are discussed below: a) Processing fees:First, comes the process fee. This is a charge that is levied by most Hells/Bs. This has to be paid at the time of submission of the application form. It has normally charged as a percentage of the loan amount sanctioned. Some HFls also charge a flat fee based on the loan amount instead of a percentage. When a lower amount is sanctioned the excess fees paid at the time of submission of the application is adjusted with the charges, which one make to the HFI/B subsequently. Most HFls/Bs refund the processing fee if the loan application is rejected. b) Administrative fees:This charge is again, normally, a percentage of the loan amount sanctioned. It is collected by the HFI/B for the maintenance of customer's records, issuing interest certificates, legal charges, technical charges, etc. though the tenure of the loan. It is payable by the customer when he/she accepts the offer letter given by the HFI/B. This payment has to be made before the ailment of the disbursement. The mode of collection of these fees varies from one HFI/B to another. c) Rate of interest :This is the rate of interest applicable on the loan amount through the tenure of the loan. It is charged on the principal monthly reducing method. Most HFIs/Bs gives an option to select either a fixed rate of interest or a variable rate of interest.

d) Legal Charges:Some HFIs/Bs mainly Public Sector Banks levy legal charges that they incur on getting the property documents vetted by their panel of lawyers. e) Technical Charges:These charges are also levied by certain Housing Finance Institutions/Banks (HFIs/Bs) to meet their expenses on the technical site visits to the customer's property. This ensures quality of construction and construction within the norms as stipulated by the respective approval authority. f) Stamp duty and registration charges:HFIs that go in for a registered mortgage pass these charges on to the customer. These are rather heavy in certain states depending on the laws laid down by the state where one buys a property. g) Personal Guarantee from Charges :Since the personal guarantee provided by the customer need to be stamped, these charges are also recovered from the customer. They are charged to him by HFIs who demand for Guarantees. h) Cheque Bounce Charges :In case the cheques through which one makes a payment to HFls get dishonored, some minimum charges are levied by the HFI. The same are recovered from the customer.

(i) Delayed payment charges :HFls/Bs charge delayed payment charges from the customer if he/she delays the payment of installments beyond the due date.

(j) Additional charges :These are levied as a percentage on the delayed payment charges by most HFls. They are levied if one fails to pay the dues within the stipulated time after a delay has taken place. (k) Incidental charge :This is payable in case the HFI/B sends a representative from their organization to collect their outstanding dues. It is normally charged at a flat rate per visit. These charges are levied by most HFls/Bs. l) Prepayment Charges :This is a penalty charged by HFls/Bs from when one makes either a part prepayment or a full repayment of the loan. This charge is levied only on lump sum payments and not on the EMls that one pays. This charge is levied on the amount prepaid by one and not on the entire outstanding principal. These charges are gradually being discount. So, these are the charges levied by most Housing Finance Institutions and Banks while granting home loan to the customers. Now, the decision on the repayment capacity shall be talked about as follows. (v) Judgment regarding repayment capacity on the basis of income :To understand how the income of a customer is considered to arrive at his repayment capacity, it is first necessary to classify customers into salaried and self employed individuals. a) The income of the salaried individual is considered in the following manner:Gross monthly income as it appears on the salary slip Less: - Any non-regular variable income appears on the salary slip (including overtime, etc.)

Add : - 50 per cent of the average variable income of the last six months. Add: - Any fixed cash/voucher payments for which proof can be submitted. Add: - 50 per cent of the average variable cash/voucher payments with proof like traveling reimbursement etc. Add :- HRA receivable if not being received already in the salary slip. The above income calculated for the calculation of eligibility using IIR and FOIR norms. For calculation of FOIR, the installments of all the loans that one has availed of currently for which repayment is being made is taken into account as well. The lower of the two eligibilities is considered as the maximum repayment capacity. b) To consider income of Self-employed individuals we further classify them into

Professionals and non-professionals . Professionals:- Comprising doctors, chartered accountants, lawyers, architects,

etc. For calculation of eligibility of professional's income is computed by most HFIs using the gross professional receipts instead of the Net profit as in the case of selfemployed non-professionals. Non-Professionals: - The income of non-professionals is normally calculated by

HFIs in the following manner: Average of the net profits of last 2 years as it appears in the profit and loss account (Returns need to be filed for the same. They should be filed regularly before the due date is over).

Less: - Any income, which is unusual and non-recurring in nature like sale of some asset, etc which affects profits substantially, Add: - Any expense that is unusual and non-recurring in nature like repairs and maintenance that has not been capitalized and effect profit adversely. Add: - 50 per cent of the average depreciation of the last two years. The above income is calculated for the calculation of eligibility using IIR and FOIR norms. For calculation of FOIR, the installments of all the loans that one has availed of currently for which repayment is being made is taken into account and the eligibility is worked out. The lower of the two eligibilities is considered as the Maximum repayment capacity. (vi) Credit documentation:Given below is the exhaustive list of credit documents- that need to be submitted for a general home loan product. The documents vary from one HFI/B to another based on one's employer, qualifications experience etc. the general requirements are as follows: (a) Income Documents : For salaried slips for the last three months appointments letter-salary certificate-retainer ship agreement, if appointed as a consultant-Form 16 issued by the employer in customer's name income document for self employee - last three years profit and loss account statement duly attested by Chartered Accountants. Last three years Balance Sheets duly attested by Chartered Accountant, last three years Income Tax Returns with computation chart duly filed and certified by the Income Tax authorities. b) Proof of employment : Identify card issued by the employer- Visiting card. (c) Employer's details (In case of private limited companies) : -

Profile of employer on employers letterhead (to be signed by a senior person in the organization) comprising Name of promoter/directors Background of promoters/directors Nature of business activity of your employer Number of employees List of branches/factories List of suppliers List of clients/customers Turnover of employer Annual reports of the employer for the last two to three years. (d) Proof of age (Anyone of the following) : Passport- Voter's ID card-PAN card-Ration card-Employer's identity card-School leaving certificate-Birth certificate. (e) Proof of residence (Anyone of the following) : Ration card-Passport- PAN card-Rent agreement, if the customer is staying currently on rent- Bank Pass book-Allotment letter from the company if he/she is residing in company quarters. (f) Proof of name change (If applicable) : A copy of the official gazette A copy of a newspaper advertisement publicizing the name change-Marriage certificates. (g) Proof if investment (If required) :Bank statement for the last six months of all operating and salary accounts - Bank statements for the last six months of all current accounts, if self-employed-any other photocopies of investments held, if required by the HFC. (vii) Legal documentation :-

Legal Documentation the typical legal documents that need to be submitted to the HFC arc discussed here. Given below is a list of legal property documents that need to be submitted to the HFC for mortgage of the property. The name and the list of documents vary from state to state and also depend on the type of property being financed. A broad outline of the documents required is given below. a) Acceptance copy of the offer letter issued by the HFC/B. b) Title documents of the property that include -sale agreement duly Registered-Own contribution receipts - Allotment letter-Registration receipt-Land documents indicating ownership, if applicable- Possession letter-Lease agreement, if applicable (Property bought from a development authority) - Mortgage deed if the HFC opts for a registered mortgage. c) No Objection Certificate from the developer, society or development authority as applicable. d) Personal Guarantees, if applicable. e) In case of alternator additional security, documents for the same depending upon the security details. f) Post dated cheques for the EMls. The above documents are only indicative in nature and do not cover the entire list. It may, also be noted that in a resale case, the previous chain of agreement also need to be taken.

8.1 - Disbursement of Home loans by different banks:HDFC LTD :Years No. of Home loan account 2004-05 2005-06 2006-07 2007-08 2008-09 holders. 700 950 1130 1435 1594 Distributed 90.07 120.00 144.67 180.33 240.00 Recovered 63.05 91.20 127.31 165.90 228.12 Balance 27.02 28.8 17.36 14.43 11.88 Home loan Disbursed (in crore Rs.)

Interpretation:On the above table, it is evident that there are increase in No. of account holders from 700 to 1594 in the year 2008-09. The loan amount distributed among home loan account holder has also increased from Rs.90.07 crore in 2004-05 to Rs.240 crore in 2008-09.

Punjab National Bank :Years No. of Home loan account holders. 2004-05 2005-06 2006-07 2007-08 2008-09 810 950 1120 1433 1500 Distributed 120.15 183.26 213.65 240.87 265.15 Home loan Disbursed (in crores Rs.) Recovered 97.28 150.00 185.86 231.07 265.05 Balance 22.87 33.26 28.05 9.80 9.10

Interpretation:The Punjab National Bank is Public sector Bank. It comes second after State Bank of India in its branch location and expansion. From the Table, the figures show that there are increasing trend in customer base from 810 in the year 2004-05 to 1500 in the year 200809. The bank also show enhancement in loan amount up to Rs.265.15 crore in the year 2008-09. The recovery process of loans in past is slow but now it is increasing.

Standard Chartered Bank :Years No. of Home loan account 2004-05 2005-06 2006-07 2007-08 2008-09 holders 106 130 154 180 260 Distributed 6.21 11.55 17.06 20.09 24.10 Home loan Disbursed (in crores Rs.) Recovered 5.27 10.16 14.35 18.68 23.91 Balance 0.94 1.38 2.70 1.41 0.48

Interpretation:The standard chartered bank is a private sector bank. It has also upgraded its position in banking sector . The figures shown in table reveals that there is upward shift in customer base of Bank from 106 customers to 260 customers. The bank has also increased its share in housing finance by distributing Rs. 24.10 crores in 2008-09. The recovery procedure of Home loan is very sound.

ICICI BANK:Years No. of Home loan account holders 2004-05 2005-06 2006-07 2007-08 2008-09 650 853 1019 1132 1434 Distributed 104.33 123.24 150.65 176.75 224.00 Home loan Disbursed (in crores Rs.) Recovered 98.12 105.00 133.46 144.65 209.16 Balance 6.21 18.24 17.19 32.10 14.84

Interpretation :The amount reveal that there is tremendous increase in Home loan accountholders. The amount distributed as home loan is also increased from Rs. 104.33 in 2004-05 to Rs. 224 crore in 2008-09. But the recovery mechanism of the Bank is not so good thats why the outstanding amount shows fluctuating trend.


LOANS BY COMMERCIAL BANKS:There are number of schemes and products, offered by commercial banks to attract the customers. The comparison among different commercial banks which offer home loans in regard of Disbursement of home loans are as:

No. of Home loan account holders ;Table 8.2(a)



Punjab National Bank 810 950 1120 1433 1500

Other Banks


2004-05 2005-06 2006-07 2007-08 2008-09

700 950 1130 1435 1594

106 130 154 180 260

650 853 1019 1132 1434

Average of No. of accounts holders: - Total of home loan customers = -------------------------------------No. of year

Table 8.2 (b) Name of Bank HDFC LTD Punjab National Bank Other Banks ICICI BANK Total Average (Rs) 1109 1163 166 1018 3456 Percentage of Accountholders 32 34 5 29 100

GRAPH:- 8.2 Home loan holders of HDFC LTD and commercial banks

Interpretation:The figure reveals that HDFC LTD is having large number of home loan accountholders. So it ranks first among other banks. But government sector PNB is not behind so much with 31% also market leader.

Home loans distributed by HDFC and Commercial banks:Table 8.3 (a) Years HDFC LTD Punjab National Bank Standard chartered Bank ICICI BANK

2004-05 2005-06 2006-07 2007-08 2008-09

120.15 183.26 213.65 240.87 265.15

90.07 120.00 144.67 180.33 240.00

6.21 11.55 17.06 20.09 24.10

104.33 123.24 150.65 176.75 224.00

(Rs.in crore) Average of home loans granted Total home loans granted = --------------------------------No. of years

Table. 8.3 (b) Name of Bank Average (Rs) Percentage of home loans granted (Rs in crore)

HDFC LTD Punjab National Bank Other Bank ICICI BANK Total GRAPH:- 8.3

204.62\ 155.01 15.80 155.79 531.22

39 29 3 29 100

Home loans granted by HDFC LTD and commercial banks

Interpretation: There is no doubt that every bank tries to maximize its home loan disbursement. But on the basis of data it is concluded that HDFC LTD shows high average of loan grants Rs. 20.62 crore as compared to ICICI, standard charted bank and PNB respectively.

Recovery of Home loans:Table 8.4 (a) Years HDFC BANK (Rs in crore) Punjab National Bank( Rs in crore) Standard chartered Bank (Rs in crore) ICICI BANK (Rs in crore)

2004-05 2005-06 2006-07 2007-08 2008-09

97.28 150.00 185.86 231.07 256.05

63.05 91.20 127.31 165.90 228.12

5.27 10.16 14.35 18.68 23.91

98.12 105.00 133.46 144.65 209.16

Average recovery of home loans Total home loans recovered = ---------------------------------No. of years

Table 8.4 (b) Name of Bank Average (Rs) Percentage of home loans recovered( Rs in HDFC LTD Punjab National Bank Standard Chartered Bank 184.05 135.21 14.47 crore) 39 30 3




Total GRAPH:- 8.4



Home loans recovered by HDFC LTD and commercial banks

Interpretation:In the previous years the recovery process of granting loans are very unorganized and inefficient. So there are less recovery of home loans by the commercial banks. But it is evident from the table that every bank whether public or private showed increase HDFC LTD has the greatest recovery of home loans i.e. 39%, Outstanding Balance :Table 8.5 (a)


HDFC LTD (Rs in crore)

Punjab National Bank(Rs in crore)

Standard chartered Bank(Rs in crore)

ICICI BANK(Rs in crore)

2004-05 2005-06 2006-07 2007-08 2008-09

22.87 33.26 28.05 9.80 9.10

27.02 28.8 17.36 14.43 11.88

0.94 1.38 2.70 1.41 0.48

6.21 18.24 17.19 32.10 14.84

Average of balance due Total of Balance due in 5 years = -------------------------------------No. of years

Table 8.5 (b) Name of Bank Average (Rs) HDFC LTD PNB Standard Chartered Bank ICICI BANK 20.61 19.89 1.38 17.72 Percentage of balance due (Rs in crore) 34 33 2 31




Average of one bank %age = --------------------------- x100 Total Average of Banks

GRAPH:- 8.5

Balance due on home loans by HDFC LTD and commercial banks

Interpretation:From the above table and figure it shows that standard chartered bank has been less outstanding balance among other banks. The HDFC LTD got high balances due to large customer base, not proper recovery process and lack of modernization of activities.

There is no strongest foundation for your dream home, than a cheap loan. Home loans have become those stronger foundations for people who want to own a home. The main objectives of the study are as follows :1) The main objective of this study is to know the Customers perceptions about home loans of HDFC housing development finance corporation LTD. 2) To analyze the history of HDFC ltd. 3) Generating good business to the company by promoting and selling the products of HDFC LTD. 4) To know the ideas of customers about home loan products and services. 5) To make comparative study of Disbursement of home loans by Commercial banks. 6) Fixing the appointments with the customers. 7) To study the satisfaction level of customers about home loans.

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


The main purpose of this study is to attain the knowledge of the processing system of home loans. The main purpose of the study are as follows : To know the ideas of customers about home loan products and services. To study the satisfaction level of customers about home loans. To study the problems faced by customers in obtaining the home loans. To learn about various aspects of HDFC home loan ltd.


The Indian housing finance industry has grown by leaps and bound in few years. Total home loans disbursements by banks has raised which witnesses phenomenal growth from last 5 years. There are greater number of borrowers of home loans. so by this study we can find out satisfaction level of customers and problems faced by them in obtaining home.


RESEARCH METHODOLOGY:Research methodology is a way to systematically show the research problem. It may be understood as a science of studying how research is done scientifically. It is necessary for the researcher to know not only the research methods but also the methodology. This Section includes the methodology which includes. The research design, objectives of study, scope of study along with research methodology and limitations of study etc. To know the Customers perceptions about home loans of HDFC LTD.

To study the satisfaction level of customers about home loans. To study the problems faced by customers in obtaining the home loans. To make comparative study of disbursement of home loans by commercial banks, the study shall be conducted in the manner enumerated below-

3.1- RESEARCH DESIGN:This project is based on exploratory study as well as descriptive study. It was an exploratory study when the customer satisfaction level was studied to suggest new methods to improve the services of HDFC LTD in providing home loans and it was descriptive study when detailed study was made for comparison of disbursement of home loans by commercial banks.

3.2 SOURCES OF DATA :- To fulfill the information need of the study. The
data is collected from primary as well as secondary sources-

A - PRIMARY SOURCE:I decided primary data collection method because our study nature does not permit to apply observational method. In survey approach we had selected a questionnaire method for taking a customer view because it is feasible from the point of view of our subject & survey purpose. We conducted 100 sample of survey in our project to judge the satisfaction level of customers which took home loans.

Sample size;For the questionnaire I have taken the sample size of 100 customers .


It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the companys database and website of the company.

3.3- SAMPLING :Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study.

SAMPLE SIZE :Large sample gives reliable result than small sample. However, it is not feasible to target entire population or even a substantial portion to achieve a reliable result. So, in this aspect selecting the sample to study is known as sample size. Hence, for my project my sample size was 100.The Sample Size consists of both the Professional and Business class people. IT peoples, Doctors, Jewelers, Timber Merchants & Real estate Agents are taken as Sample.


The analysis is based on the responses given by customers through questionnaires. AGE GROUP OF SURVEYED RESPONDENTS TABLE 9.1: Age group 18 - 25 years 26 - 35 years No. of Respondents 127 67

36 - 49 years 50 - 60 years More than 60 years CHART-9.1:

46 24 6

Analysis:- From the chart above we find that 47% of the respondents fall in the age group of 18 25 years, 25% fall in the age group of 26 35 years and 17% fall in the age group of 36 49 years. Therefore most of the respondents are relatively young (below 26 years of age). and 6% respondents age are 50-60 years and 2% respondents age are 60 to above years.

GENDER CLASSIFICATION OF SURVEYED RESPONDENTS TABLE-9.2 Sr. No. 1 2 Category Married Unmarried Total No. of Respondents 140 60 200 Percentage 70% 30% 100% Base 200 respondents


Interpretation From the table and graph above it can be seen that 70% respondents are married. 30% respondents are unmarried.

Educational qualification of respondents

TABLE-9.3 Sr. No. 1 2 3 Category Under graduate Graduate Post graduate Total No. of Respondents 50 80 70 200 Percentage 25% 40% 35% 100% Base 200 respondents


Interpretation From the table and graph above it can be seen that 25% respondents are under graduate. 40% respondents are Graduate. 35% respondents are Post graduate.


TABLE 9.5: Customer profile Student Housewife Working Professional Business Self Employed Government service employee Chart-9.5 No. of respondents 7 5 116 49 24 24

student 11% 22% 11% 3% 2% working professional business 51% self-empoyed government service housewife

Interpretation 51% of the respondents are working professionals, 22% are into business and 11% are self-employed, 11% of the respondents are government service employee and 3% of the respondents are student and 2% of the respondents are house-wife.


TABLE-9.6 Sr. No. 1 2 3 4 Category Less than 2 lakh Between 2 to 5 lakh Between 5to 8lacs More than 8 lakh Total No. of Respondents 98 62 30 10 200 Percentage 49% 31% 15% 5% 100% Base 200


Interpretation From the table and graph above it can be seen that 49% respondents annual household income is less than 2 lakh.\ 31% respondents annual household income is between 2 to 5 lakh.\ 15% respondents annual household income is between 5 to 8 lakh 5% respondents annual household income is more than 8 lakh.

Do you know about HDFC housing development finance corporation LTD?

TABLE 9.7: Category Yes No No. of Respondents 164 16


Awareness about HDFC LTD

Interpretation:From the table and graph above it can be seen that 91% respondents are known about HDFC LTD 9% respondents are not known about HDFC LTD Table 9 .8:-

Reasons for getting the home financed

Sr.No. a. b. c. d. Number of Reasons Non-availability of funds Reluctancy to pay cash in one go Tax benefit Any other Percentage 36 35 24 5

GRAPH:- 9.8

percentage of customers

40 35 30 25 20 15 10 5 0

nonreluctancy tax benefit any other availability of funds

Interpretation :To interpret the response of the questions, the figures shows that most of the customers find the problem in availability of funds i.e. 36% and very less number of customers found problem in paying cash in one go is 35%, customers get housing loan for tax benefits is 24%. This was the expected response because a large number of people find a problem of availability of funds which works as an obstacle in owning a dream home. Table-9.9

From where you have got your home financed

Name of Banks / company HDFC LTD Punjab National Bank Standard Chartered Bank ICICI BANK Any other GRAPH:- 9.9 Percentage of customers 55 15 07 20 03

From where you have got your home financed

percentage of custom ers

60 50 40 30 20 10 0 HDFC PNB SCB ICICI any LTD BANK other

Interpretation:The analysis showed that a large number of customers prefer HDFC LTD as compared to others. The data shows that 7% of customers took loan from Standard Chartered Bank, 20% of customers from ICICI BANK, 15% . Table-9.10

Sources of information about Home Loans Scheme

Sources of information Newspapers Magazines Banners/Hoardings/Pamphlets Word of mouth Any other source Percentage of customers 49 16 11 20 04

CHART:-9.10 percentage of source of information about home loans scheme

20% 11% 4% 49% 16%

magazines banners

word of mouth any other source Sources of information about Home Loans Scheme

Interpretation:The data shows that around 20% of customers got information from source of 'Word of Mouth' which includes information from friends, relatives, colleagues etc. 49% of customers got information from newspapers, only 16% of customers from magazines and 4% of customers got information about home loans schemes under 'Any other source' and 11% through Banners/ Hoardings/Pamphlets . TABLE:- 9.11 DATA GIVES PREFERENCE OF RESPONDENTS OF HOME LOANS COMPANIES AND BANKS


NO.OF RESPONDENTS 78 2 10 7 3 100

(%) 78 2 10 7 3 100

80 70 60 50 40 30 20 10 0 HDFC LTD SCB ICICI BANK PNB SBI

percentage of custom ers

INTERPRETATION:78% of the people contacted prefer HDFC LTD to any other and therefore it is ranked no.1 by that percent of respondents.


There are everything in the world has good or bad points. No doubt banking industry/ company has made many efforts to enhance the customer satisfaction but customer still faced some problems. These are high lightened as below: 1) The customer does not have proper knowledge about different home loan products so they face problem in making a good deal. 2) There are procedural delays, which harass the customers lot. This will crush the curtsy of customers to avail the home loan. 3) The attitude of bank employees some times non cooperative and it creates a hurdle in building trust and Confidence among customers about banks.

4) The banks do not take into account the paying capacity of customers. So some customers are not able to get amount of loan needed by them. So above discussed are the problems which faced by customers while availing home loans.


This study also includes some limitations which have been discussed as follows: i) The sample size of 100 customers and 4 banks might prove a limitation because of difficulty in generalization of results. ii) To collect the data from various banks was quite difficult due to non- cooperation of some banks. This proved to be major limitation of the study. iii) To access such a large number of customers was difficult because of non-cooperative attitude of respondents.

iv) Lack of data was also the other limitation of the study as some of banks do not have proper data on topic. v) There was limitation of time to conduct such a big survey in limited available time. vi) Ignorance and reluctant attitude of customers was also a major limitation in this study. Thus above all were the limitations in this research study. The maximum efforts were made to overcome these limitations in the study.

1. HDFC LTD has good brand image in the minds of customers. 2. Majority of the people got loans from HDFC LTD only 3. Most of the customers are not aware of the products of home loans. 4. Some of the customers felt that the interest rates are some what high 5. Some of the customer not having good faith on private banks like Standard chartered bank, HSBC bank etc. 6. Most of the people are directly go to HDFC to apply a home loan. 7. Some of the customer of HDFC already benefited through HDFC home loan products and services

8. Customer awareness is medium about HDFC products. 9. HDFC LTD providing good services to their customers.

1) In my study we came to know that many peoples are interested to take a home loan from HDFC LTD to construct their homes. 2) Home loans have long period when compare to other personal loans and other loans. So peoples are confused to take a home loan. 3) Even though the interest rates are high peoples are willing to take a loan from HDFC LTD due to some reasons. 4) The interest rates also some what high when compare to other banks 5) The loan sanction process is low when compare to other banks. 6) For disbursement process is also it will take low time when compare to other banks

Finally the whole research was carried out in a systematic way to reach at exact results. The whole research and findings were based on the objectives. However, the study had some limitations also such as lack of time, lack of data, non-response, reluctant attitude and illiteracy of respondents, which posed problems in carrying out the research. But proper attention was made to Carry out research in proper way and to make accurate conclusion for the HDFC LTD which may beneficial for banks to enhance their customer base.


These suggestions have been discussed as follows:1) To increase their customers, the HDFC LTD should provide specialized services in this sector. These services can be such as proper guidance to the customer regarding the processing of loans, especially for the customers who are illiterate. 2) To satisfy their customers and for good dealings in future, the HDFC LTD should make prompt disbursement of loan amount to the customers so that they can buy or construct their dream home as early as possible.

3) The HDFC LTD should use easy procedure, or say, less lengthy procedure for the sanctioning of loan to the customer. There should be less number of legal formalities, in case this exists, then, these should be completed in less time. This will be helpful in attracting more customers. 4) Although the interest rates on specific norms, yet customers seek less interest rate which can lower their cost of house. So banks should try to lower their interest rates. Needles to say, that the bank which is having lower interest rates, have the maximum clients for loans. 5) HDFC LTD provide loan according to the repaying capacity of the customer and his/her eligibility. Due to which, some customers are not able to get amount of loan needed by them. So, the HDFC LTD should soften their norms regarding the loan amount. 6) Create awareness: The Company has to take care of awareness creation about the products and services among the customers. 7) Charges: The Company has to reduce the mortality and administration charges. 8) The company has to reduce their interest rates on home loan products and services. 9) The company has to identify the potential customers. 10) Company should consider the present competition and should act according to the customer needs. 11) The HDFC LTD should try to provide proper knowledge regarding their home loan schemes, even to people who don't know about such schemes and their benefits especially in rural areas. So they should provide knowledge to the ignorant customers, especially in rural areas and backward urban area So, above are the main suggestions provided to the HDFC LTD. By considering these suggestions, the HDFC LTD can

strengthen their customer base in home loans sector. They should improve their services and reduce legal proceedings and should be friendly to their customers. All this will be helpful to satisfy their customers.

Balance sheet of CCI Ltd. Mar ' 09 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus 414.22 41.75 355.43 408.90 47.07 355.43 408.90 41.75 355.43 429.28 17.54 429.28 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

-1,060.98 -1,113.53 -1,154.42 -1,321.02 -2,152.86

Mar ' 09 Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities 0.02 509.17 2.28 17.36 191.25 374.04 43.58 417.63 549.43 114.74 13.29 2.28 664.17 440.83 191.25

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

445.19 143.07

417.72 69.39



866.27 1,629.08 8.68 -20.06

648.18 538.36 109.82 22.35 2.28

646.76 526.87 119.90 13.75 2.28

647.14 511.14 136.00 10.81 2.28

646.27 494.28 151.99 21.11 2.28

372.85 381.16 -8.30 16.92 143.07

291.41 373.05 -81.63 15.10 69.39

198.98 355.13 -156.15 15.74 8.68

151.92 388.06 -236.14 40.70 -20.06

2.28 0.02 507.61

2.28 0.02 492.03

Mar ' 09 Number of equity shares Profit loss account of CCI Ltd. 41.42

Mar ' 08 40.89

Mar ' 07 40.89

Mar ' 06 -

Mar ' 05 -

Mar ' 09 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit 47.65 96.52 57.24 60.47 261.88 57.60 44.02 101.62 37.37 10.91 53.33 0.36 52.97 -0.43 52.55 319.48

Mar ' 08

Mar ' 07 Mar ' 06 Mar ' 05





42.82 42.00 36.89 104.63 226.34 65.95 23.25 89.19 34.65 11.38 0.38 42.80 0.37 42.43 -1.53 40.89

39.76 39.16 35.95 101.90 216.78 67.47 149.06 216.53 31.10 16.57 1.29 167.57 0.36 167.22 -0.61 166.61

50.01 116.65 69.43 33.73 269.82 -74.60 947.24 872.64 11.52 16.74 7.58 836.80 0.24 836.56 -4.72 831.84

31.80 81.67 26.54 15.72 155.73 -6.31 9.47 3.16 186.73 17.02 16.79 -217.38 -1.56 -218.94

Mar ' 09 Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings

Mar ' 08

Mar ' 07 Mar ' 06 Mar ' 05 831.84 831.84 -218.94 -218.94

-1,060.98 -1,113.53 -1,154.42 -

-1,060.98 -1,113.53 -1,154.42

Name: .. Address: .. Contact No :( O) (M) City: ...............Pin: .State: . 1. Age: (a) Below 30 2. Occupation: (a) Professional (e) Others 3. Which income group do you belong? (Per annum) (a) Below 2 lakes (c) 4-6 lakes (b) 2-4 lakes (d) 6 lakes and above (b) Self-employed (c) Salaried (b) 30-40 (c) 40-50 (d) Above 50

4. Have you ever taken Home loan before? (a) Yes (b) No

5. Are you Satisfied with the services provided? (on 5 point scale) _____________________________________________________________________ Highly dissatisfied dissatisfied Neutral satisfied highly dissatisfied

6. While taking loan, which things attract you the most? (a) Interest rates (c) Pay back period (a) Yes (b) No (b) Service Provided (d) Schemes

7. Even if the Interest rate is high for the personal loans, you will go for it?

8. How much loan amount you took? (a) Less than 1 lakhs (c) 5-10 lakhs 9. What is reason for getting it financed? 1. Non availability of funds [ ] 2. Reluctance to pay cash in on go [ ] 3. Tax benefit [ ] 4. Any other (please specify) ......................................... 10. From which of the following banks/ company you have got if financed? Standard Chartered Bank [ ] ICICI Bank [ ] State Bank of India [ ] (b) 1-5 lakhs (d) more than 10 lakhs


Any other (please specify) ...........................................

Berstain David(2008), Home equity loans and private mortgage insurance: Dr. Rangarajan C. (2001), A Simple Error Correction Model of House Price. Fanning (1982), The Demand for Home Mortgage Debt Journal of Urban Godse (1983), looking a fresh at banking productivity, Journal of Real Estate Haavio, Kauppi(2000) , Residential Lending to Low-Income and Minority

Recent Trends & Potential Implications, Vol.3 No.2, August 2008, Pp. 41 - 53 Journal of Housing Economics Vol. 4, No. 3,pp 27 34 Economics, Vol 11 No 2, November, pp. 770-774 Literature, Vol. No. 13, Page 141 to 164. Families: Evidence from the 1992 HMDA Data," Federal Reserve Bulletin,Vol no 80(2), December 2000 Pp-79-108 Kulkarni (1979), Development responsibility and profitability of banks Journal La courr, Micheal(2007) , Economic Factors Affecting Home Mortgage of Economic Perspectives, Vol 9 No 1 ,pp. 26-32. Disclosure Act Reporting The American Real Estate and Urban Economics Association, Vol.2 No. 2 May 18, 2007, Pp. 45 -58 La cour Micheal(2006) , The Home Purchase Mortgage Preferences Of LowandModerate Income Households, Forthcoming in Real Estate Economics , Vol 18, No 4 , December 20, 2006, p. 585. Vandell ,kerry D(2008), Subprime lending and housing bubble: tail wag dog? Brochure on home loans from HDFC LTD International Journal of Bank Marketing, vol 21,no 2, pp. 53-7

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Financial Express

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