INTRODUCTION

In the recent years the demand of home loans has increased dramatically. Part of the reason for this increase is because of accessibility of loans has gotten bigger. Today home loans are available in the market at very low and good rates that meet the demands of many home buyers. A home represents the largest asset that typically people have and this is why home loans have such a huge impact in the loan market today. When a person purchases a home he or she will be investing a huge amount of cash. Many people cant come up with the whole money to pay out to the house, while some others cant even afford to invest money for the house they will like to purchase in part this is how home loans have turned out to be a benefit for people who want to buy the home of their choice but cannot afford it at the time. Now days home buyers dont have to worry much about the source of money for their homes. Home loans have made the life of many house buyers much easier. But house buyers should be very careful when choosing a home loan. Before doing anything else. Borrows should make a through research of the current interest rates in the market and then opt or go for any home loan. Buyers could even go for home loans by mortgage. This way the borrowers can get a loan after pledging or securing any asset or securities of their own against amount of money barrowed by them. When getting a home loan the individuals should consider taking care of different aspects related to the home loan. An individual should be very careful when deciding the principal amount of the home loan being borrowed or else the person may end up with a very high principal amount and then he or she will have to pay more interest for the money being borrowed unreasonable. The most popular method of financing a home purchase is with a mortgage. This is a loan that is secured over the home. There are a number of different mortgage suppliers and you will have to shop around in order to get the best deal. Given that your home is probably the single biggest purchase you will make in your life time you must make sure to take the care and attention that the transaction merits. Mortgage rates can vary grabbed from lender and the amount your rate is set at can make a huge difference to the amount your repayments will amount to.

LOAN DEFINITION
A thing that is borrowed, esp. a sum of money that is expected to be paid back with interest Or Borrow (a sum of money or item of property) the word processor was loaned to us by the theater

TYPES OF LOANS
SECURED LOANS
Loan against Gold Loan against your Insurance Policies Loan against Fixed deposits Loan against Property Loan against Other investments

UNSECURED LOANS
Personal Loan Credit Card

HOUSING LOANS IN DHFL

The housing loan scheme of the DHFL is named DHFL and for Salaried persons Griha Sewa. It has been a successful product launched by banks retail assets division. The housing loan disbursement procedure followed by the bank has been undertaken.The various documents involved and the intricacies in taking a housing loan have also been highlighted as a part of my study.

The housing loan segment has number of added extensions to its portfolio because of increased competitiveness among the HFIs. An attempt has been made to understand the various extensions and new concepts and the benefits extended by the banks. A housing loan scheme is generally offered to the person to accommodate finance for purchasing the house or for renovation or extension of the existing house. The various extensive schemes, which are included in the housing loan portfolio, are:

House Purchase Loan

This is the basic housing loan for the purchase of a new house.

House Improvement Loans

These loans are given for implementing repair works and renovations in a house that has already been purchased by you.

House Construction Loan

This loan is available for the construction of a new house.

House Extension Loan

This is given for expanding or extending an existing house. For eg: addition of an extra room etc.

House Conversion Loan

This is available for those who have financed the present house with a housing loan and wish to purchase and move to another house for with some extra funds are required.

NEED OF STUDY
This study we offer you the most hassle-free home loan schemes of full fill your dreams. This study is used for interest rates in DHFL for purpose of customers. To give an insight into various facts of Housing loans sector. 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 aspect of DHFL home loan ltd.

OBJECTIVE OF THE STUDY OF HOME LOANS

The study was mainly conducted to understand the concept of housing loan scheme and the eligibility criteria of the customers. The study is done to understand the documents involved in the housing loan scheme and the repayments. To evaluate the scheme of DHFL. To understand the risk capturing mechanism adopt by the HFC(Housing Finance Corporation). To examine the home loan segment is future.

SCOPE OF STUDY
The study covers a period of five years from 2010 to 2012. There are several reasons for selecting this period. The study is discussing various extensive schemes, which are includes in the housing loan of DHFL. The study is limited to DHFL this study is mainly related to the individuals who are interested in taking housing loans from banks to fulfill their dreams. The study is mainly related to all the loans provided by DHFL only.

RESEARCH AND METHODOLOGY

The methodology adopted for this study includes both primary and secondary data. The period selected for the study is five years that is from 2010-12.

Primary data
Primary data is collected through interaction with the official of the DHFL housing loans.

Secondary data
The data has been collected from various secondary sources like book and internet.

Annual reports of the DHFL from 2010-12.

LIMITATIONS
The study is confined to the Housing loans of DHFL. The analysis of this study is mainly done on the income statements of DHFL. This study is limited for the period of 45 days. It does not take into consideration all Indian companies Housing loans. The hedging techniques are studied only which the company adopted to Housing loan.

Loan Definition A thing that is borrowed, esp. a sum of money that is expected to be paid back with interest Or Borrow (a sum of money or item of property) the word processor was loaned to us by the theater TYPES OF LOANS Secured loans Loan against Gold Loan against your Insurance Policies Loan against Fixed deposits Loan against Property Loan against Other investments Unsecured loans Personal Loan Credit Card

Loan against Gold

As the name suggests this is the loan given against gold. It is given for any legal purpose. you need to pledge your gold with the bank or the loaner and get the loan depending on the quality of gold and amount of gold loan needed.

Loan against your Insurance Policies

If one has a life insurance policy, one can take a loan against it from the insurance company. The amount depends on the type of policy and the period for which the policy has been in force. The interest charged, which is available at a lower rate, the period of the loan and the terms of repayment are decided by the insurer. The loan is a percentage of its surrender value. In the case of traditional policies, the proportion of the surrender value available as loan may be as high as 90%. If an insurance company provides a loan against Ulips, the value will depend on the type of fund.

Loan against Fixed deposits

When you invest in a bank fixed deposit, you can easily get a loan against it without having to break it. This is similar to a personal loan. However, the loan is structured as an overdraft facility against your fixed deposits. In case of a company deposit, you can borrow after three months of investing. In case of bank deposits, they generally vary from bank to bank. Certain banks, such as Punjab National Bank, allow loans from the very next day of making the deposit. Some like HDFC may even offer one after six months. You need to check with your bank on the same.

Loan against Property

A loan against property (LAP) is exactly what the name implies -- a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 40 per cent to 60 per cent. Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security. 10

Personal Loan
A loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay. A personal loan is a short-term loan to assist you with your finances. This payday loan is secured against a future paycheck. These loans have become quite popular today, and now this is the main way to get financial assistance in the form of a cash advance.

Credit Card
A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them. [1] The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. DEFINATION OF HOME LOAN A loan advanced to a person to assist in buying a house or condominium. Now, home loan has broader meaning and offers you loan for your even small need regarding your home. To understand this concept better, let us have a look on the different types of home loans available in the market.

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Types of Home Loans

Home Purchase Loans Home Improvement Loans Home Construction Loan Home Extension Loan Home Conversion Loan Land Purchase Loans Bridge Loans Balance Transfer Loans Refinance Loans Stamp Duty Loans Home loans in India have made people Buy Property in India in spite of the skyrocketing prices. Today, we find considerable real estate Investment in or Commercial Properties in India. Home Loans in India are disbursed by many Banks as Loan Banking is on of the most important function of the Financial Services in India. Property Dealers and Real Estate Consultants in India usually recommend that we undertake appropriate Home Loan or Mortgage Loan counseling so that we can Buy Apartment in India at an affordable Mortgage Rate. Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a home on loan. Home loan means that you buy a house on 12

installments. In simpler terms when you want to own a home and cant afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate. The interest rates of home loans are expected to go down even further according to analysts who foresee a cut down in the rates by the RBI in the wake of the decision taken by US Federal Reserve to cut its rates by a significant margin. There are number of companies offer cheap home loans at a low interest rate. You can avail loan against existing house for renovation or expansion etc. It has taken a front seat and people are looking forward to owning their own houses. It is no more a dream that required lifetime saving and a difficult decision to make. Today the new home purchase loan is much easily available and is much cheaper than what was available earlier. Banks are now everywhere and the schemes are implemented even in villages and smaller towns. The housing loans are popular there too, however, the activity of building flats is little slow. It would not be wrong to say that there has been a boom in the home loan market and with this boom; there is also a boom in the Number of home loans mortgage brokers in India.

FEATURES OF HOME LOAN

Home loans are available on fixed rate of interest as well as floating rate of interest. In fixed rate loans, the interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The plus point of fixed rate loans is that they remain steady over the years, making at least one aspect of your monthly cash flow predictable. However, the flip side is that the lenders charge a higher rate of interest for fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the funds they are lending. GENERAL INFORMATION The loan amount is based on the repayment capacity of the customer. However, it cannot be more than 85% of the cost of the property (including the cost of the land). The minimum term of home loan is 5 years, while the maximum duration for the loan is 20 years, subject to the retirement age of the applicant.

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Home Loans can be applied either individually or jointly, with spouse, children (son or daughter) and even earning parents (father or mother), but if staying with the applicant and having regular income. Home loan eligibility can be enhanced by repaying the outstanding loans, clubbing the income, increasing the home loan tenure and opting for a step-up loan. The amount of loan sanctioned varies from bank to bank. Generally, the maximum loan amount granted for the applicant would be 80% to 85% of the cost of the home. The eligibility for the applicant depends upon his/her capacity of repayment. It stiffens with the increase in home loan rates. Processing charge, pre-payment penalties, commitment fees and miscellaneous costs accompany a home loan, in many of the cases. Providing additional security, like bonds, fixed deposits and LIC policies, or having a guarantor can enhance your eligibility for a home loan.

HOME LOAN PROCEDURE IN INDIA

Submission of Application Form
After choosing a particular home loan, the customer submits the application form to the housing finance company (HFC) along with other relevant documents as required by the HFC. They comprise documents to establish income,age,residence,employment, investment, investments, etc. The customer also needs to hand over a cheque for payment of an up front (non -refundable) processing fee of about 0.5-1% of the loan amount to the HFC.

Validation of the Information

In the next stage, HFCs validate the information provided by the customer on the application form. They usually conduct checks on the residential address of the customer, the place of employment of the customer, and credentials of the employer. Some HFCs may insist on

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a personal interview with the customer and perform a reference check on the references provided by the customer on application form.

Issue of Sanction Letter

A sanction letter is issued which contains details such as loan amount, rate of interest, annual / monthly reducing balance, and tenor of the loan, mode of repayment and general terms and conditions of the loan. This is the actually the approval of the money lending procedure by the company. However, the money is sanctioned only after the documents and the property on behalf of which the loan is being granted is thoroughly verified.

Submission of Documents
The customer is required to leave the entire set of original documents pertaining to the property being purchased with the HFC as security for the loan amount sanctioned. These documents remain in the custody of the HFC till the time the loan is fully repaid. Once the documents are handed over to the HFC, they send all the documents for a thorough legal scrutiny.

Validation of Property
Prior to disbursement, the HFC also conducts a site visit to the customer's property to ensure that all construction norms have been adhered to properly.

Payment Procedure
The borrower is entitled to take the money from the lender party. Until such time that the entire sanctioned amount is not drawn, the customer is supposed to pay a simple interest

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on the Actual Amount drawn (without any principal repayments). The EMI payments commences only after the entire sanctioned loan amount is drawn.

INTEREST RATES PROVIDED BY VARIOUS BANKS

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TYPES OF HOME LOANS

Home Purchase Loans
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This is basic home loan for the purchase of a new home. If you want to buy a flat in some society or some already built house, banks and HFCs sanction you home purchase loans for this process.

Home Construction Loans

This loan construction of a new home on a said property. The documents that are required in such a case are slightly different from the ones you submit for a normal Housing Loan In cases where the period from the date of purchase of land to the date of application has exceeded a year, the land cost will not be included in the total cost of property while calculating eligibility.

Home Improvement Loans

These loans are given for implementing repair works and renovations in a home that has already been purchased, for external works like structural repairs, waterproofing or internal work like tiling and flooring, plumbing, electrical work, painting, etc. One can avail of such a loan facility of a home improvement loan, after obtaining the requisite approvals from the relevant building authority. The following are coming under the home improvement loans:

Home Extension Loans

An extension loan is one which helps you to meet the expenses of any alteration to the existing building like extension/ modification of an existing home; for example addition of an extra room etc. One can avail of such a loan facility of a home extension loan, after obtaining the requisite approvals from the relevant municipal corporation.

Home Conversion Loans

This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through a home conversion loan, the existing loan is eliminating the need for pre-payment of the previous loan.

Land Purchase Loans

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This loan is available for purchase of land for both home construction or investment purposes.

Stamp Duty Loans

This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.

Bridge Loans
Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.

Balance- Transfer Loans

Balance Transfer is the transfer of the balance of an existing home loan that you availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a lower rate of interest.

Refinance Loans
Refinance loans are taken in case when a loan for your house from a HFI at a particular ROI you have taken drops over the years and you stand to lose. In such cases you may opt to swap your loan. This could be done from either the same HFI or another HFI at the current rates of interest, which is lower.

NRI Home Loans

This is tailored for the requirements of Non-Resident Indians who wish to build or buy a home or property in India. The HFCs offer attractive housing finance plans for NRI investors with suitable repayment options. On would be entitled for home loans in the range of Rs 5 lakh to a maximum of Rs 1 crore, based on the repayment capacity, previous credit history and the cost of the property. The bank may provide a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land.

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COMPANY INTRODUCTION
DHFL (Dewan Housing Finance Corporation Ltd) has become one of the largest financial institutions in India. We have taken the road less traveled. The journey began on April 11, 1984. On this day, Mr. Rajesh Kumar Wadhawan set out on his mission to correct what had troubled him for years, the sad truth that most Indians couldnt get a housing loan on fair terms. The Founder Chairman saw that owning a home is a critical element to the building of an identity and confidence in every Indian. DHFL was the second housing finance company to be set up in the private sector in India, and its stated business objective was to enable access to affordable housing finance to the lower and middle income groups in India. Most experts lauded Mr. Wadhawans altruism but shook their heads at his apparent lack of business acumen, especially as in the beginning DHFL disbursed funds from its own equity contribution and had a return of less than 8% at a time when the interest rates were about 18%. But, that is the difference between those who see things as they are and the visionaries who see things as they can be. Over 28 years have passed since the companys inception and today DHFL arguably stands strong as one of Indias largest housing finance companies (and the second largest in the private sector) and is still profitably doing what its Founder intended it to do. It has a purpose driven team of enthusiastic people who are willing to carry on the Founders vision and transform the housing scenario in India by providing affordable housing finance. DHFL has encouraged hundreds of thousands of people to make that upward journey by simplifying financial access for them. By providing these individuals with the privilege of home loan products, insurance services and unique fixed deposit schemes tailor made to suit their needs. Today, DHFL with its Corporate Office at Mumbai , strives continually to reach out to its customers through its extensive network of 140 Branches,72 Service Centers, 32 Camps and 8 Regional Processing Offices spread across the length and breadth of the country. DHFL also has tie ups with leading public and private sector banks namely Punjab & Sind Bank, United Bank of India and Central Bank of India and YES bank to provide home loans to customers through joint ventures. DHFL has also set up its representative offices in London and Dubai to 20

serve the ever increasing NRI population in these regions. It has also tied up with UAE Exchange to offer its home loan products through the various UAE Exchange centers in the GEC countries. The Founder Chairman had a unique and timeless insight into the character of the majority of Indians who are generally dismissed as high credit risk. They respond unequivocally to trust. They have a very emotional relationship with the idea of an own home. To them it isnt an investment; it is a sanctuary, a symbol of who they are. They will not do anything to jeopardize this symbol of security. This insight was the prime motivation behind DHFL. DHFL has always been customer driven. In doing so it has continually endeavored to innovate and reach out to the vast majority of the low & middle income groups. DHFL has been continuously introducing new products and variants for its customers. The Company introduced a Non-Income Proof Scheme called Samarth for self employed individuals. Along with housing finance, the Company provides a free Triple Protection Plan* (terms & conditions apply) to secure the interest of its customers in case of damages due to natural causes and personal accident. DHFL in association with leading financial Insurers in India offers unique home loan linked insurance plans that come at a premium. Such plans provide security to the family of the borrower in the unfortunate event of the death of the borrower. Our credit policies are conducive in helping people with affordable housing finance. The policies have been designed keeping in mind the intimidation that customers in the LMI category experience when they approach a normal bank for housing finance. Our policies work around the regular framework of credit policies and go a few steps further by assessing the customers willingness to repay and thus try and maximize its efforts at serving his requirement. Today, DHFL is the first name on that comes to mind concerning home loans. Were seen as a housing finance company that has transparent business practices and since none of our business processes have been outsourced, we ensure consistent service delivery. This faith in our customers has been amply rewarded.

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Lets be honest, we all know how difficult it is to get a home loan. But at DHFL, we make sure even your most challenging dream becomes a reality. That's why, we offer you the most hasslefree home loan schemes to fulfill your dreams. Today, when most banks accept a loan application only after scrutinizing the applicant's occupation and income level, we, on the other hand don't differentiate between dreams. You can still get a home loan, regardless of your income or occupation. And, with our flexible application process, you don't have to sweat over filing documents either. After all, dreams cannot be restricted to mere papers.

FUNCTIONS
With an experience of over 28 years, you can expect the best of services from us.

In-house legal and property evaluation Flexible application process Professional handling of all paperwork Maximum tenure of home loan: Upto 20 years Easy repayments Stamp duty and registration costs included Home loan tax benefits Zero pre-payment charges Online home loan account facility Take a step towards your dream - fill in the details alongside and our representative will get in touch with you.

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Our Home Loan Approval and Disbursement Process.

At DHFL, our focus is to simplify, abridge and shorten the process of acquiring your Dream Home. Once you have identified your Dream home, we work towards ensuring that you also get your home loan just as easily. Our home loan application form, is both simple and comprehensive. Simply fill it, collate the essential documents required to process your home loan and submit it to us along with a cheque favoring Dewan Housing Finance Ltd for the initial processing fees. If you any questions at this stage or need help with this, our home loan advisors are at hand to assist you with your application. Your dream home is not too far away now, as we at DHFL work on getting your loan application processed at the earliest. Here is a quick guide to the process we follow, and the steps involved before you become the proud owner of a beautiful home you dreamt of. Four Major steps in a Home Loan approval process.

Step 1 Assessment Step 2 Conditional Loan Sanction Step 3 Security Assessment Step 4 Loan Disbursement

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VISION & VALUES

VISION

To transform the lives of Indian households by enabling access to home ownership.

MISSION

Be easily accessible to every Indian who desires to own a home. Understand our customers inner needs and speak their language. Go to any length to make sure our customers dont feel intimidated. Continuously configure our credit policy to make sure the maximum number of people can be eligible for loans. Find ways to help our customers tide over difficult times. Spread our network to every corner of India. Respond promptly and courteously to all enquiries.

VALUES

Treat all customers with dignity and respect. Be totally transparent in all dealings. Strive to be a learning organization. Commitment to team excellence and employee happiness. Be single mindedly committed to the betterment of society.

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MANAGEMENT
Leading a company, such as DHFL requires leaders with special insights to understand and balance the ever-growing needs of our customers with the unrelenting demand for corporate performance. Mr. Kapil Wadhawan Chairman & Managing Director, DHFL Mr. Anil Sachidanand President, DHFL Mr. Rajeev Sathe COO, DHFL Board of Directors Board of Directors Shri Kapil Wadhawan Shri Dheeraj Wadhawan Shri R. P. Khosla Shri G. P. Kohli Shri. Anthony Hambro Shri Ajay Vazirani Shri V. K. Chopra Dr. P. S. Pasricha Shri. M Venugopalan

Chairman & Managing Director Director Director Director Nominee Director Director Director Director Director

AWARDS & RECOGNITION

AWARDS
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Our greatest reward at DHFL is the assured smile of our customer. Yet, every now and then, recognition by prestigious institutions makes us smile as well. Awards Year DHFL is among most trusted Financial Brands in India Brand 2012-13 Trust Report DHFLs Marketing Head Super Achievers Award, at 11th Indira 2012-13 Super Achievers Awards for Professional Excellence DHFLs Group HR Warrior Awards. A recognition for the Talent, 2012-13 Competence and Skills of HR Professionals using the MAD Approach- Making a Difference 2012 DHFL wins Marketer of Year Realty Plus Excellence Awards of 2012-13 the Year 2012 DHFL wins Greentech HR Excellence Award 2012 for Best 2011-12 Strategy(Gold Award) DHFL among Indias 50 Biggest Financial Companies in India 2011-12 DHFL becomes Life time corporate member of with The Indian 2011 Insitution of Valuers (India) DHFL Wins Realty Plus Newsmaker of the Year-2011 2011 2nd Asias Best Employer Brand Award for Excellence in HR 2011 through Technology DHFL is now Power Brand 2010-11 DHFLs HR team win Global Greentech Award for Technology 2010 Excellence in HR Mr Kapil Wadhawan wins UDHAN Award for the Year 2010 2010 by Navbharat Times Indias Top 100 Best Companies to work for Great Place To 2010 Work Institute, India in Association with Economic Times Silver CIO Award08 by CIOL Dataquest Enterprise Connect 2008 Awards Excellence in Design among HFIs at Property Expo October07 2007 by(Maharashtra Chamber of Housing Industry) Excellence in Design among HFIs at Property Expo April07 2007 by(Maharashtra Chamber of Housing Industry) SRS Real Estate & Infrastructure Award for National Excellence 2007 (Real Estate Watch Monthly) Award of Appreciation (Maharashtra Chamber Of Housing 2007 26

Industry) Best Customer Service HFIs Property (5th Housing And Real 2004 Estate Exhibition) Project Crayons corporate Social responsibility Award Housing Company of the Year Young Achiever Awards (Accommodation Times) Rashtra Nirman Ratna Awards Udyog excellence Awards 1995 Housing company of the Year Udyog Gaurav Award 2004 2002 2002 2002 1995 1992 1991

INTRODUCTION HOUSING LOANS

Loan Definition
A thing that is borrowed, esp. a sum of money that is expected to be paid back with interest Or Borrow (a sum of money or item of property) the word processor was loaned to us by the theater

TYPES OF LOANS Secured Loans

Loan against Gold

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Loan against your Insurance Policies Loan against Fixed deposits Loan against Property Loan against Other investments

Unsecured Loans
Personal Loan Credit Card

Definition of Home Loan

A loan advanced to a person to assist in buying a house or condominium. Now, home loan has broader meaning and offers you loan for your even small need regarding your home. To understand this concept better, let us have a look on the different types of home loans available in the market. A home loan scheme is generally offered to the person to accommodate finance for purchasing the house or for renovation or extension of the existing house. The various extensive schemes, which are included in the home loan portfolio, are:

Home Purchase Loan

This is the basic home loan for the purchase of a new home.

Home Improvement Loans

These loans are given for implementing repair works and renovations in a home that has already been purchased by you.

Home Construction Loan

This loan is available for the construction of a new home.

Home Extension Loan

This is given for expanding or extending an existing home. 28

For e.g.: addition of an extra room etc.

Home Conversion Loan

This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for with some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan. Individuals who are salaried or self employed, professionals, businessmen are eligible. Proprietary concerns, HUF, partnership firms or limited companies are not eligible for this loan, where partners at their individual capacity are free to avail this loan. As a customer to enhance the loan eligibility, all HFIs lay down conditions to who be co applicants, al co owners to the property should necessarily be co-applicant. Income of the co owners can be clubbed together to get higher loan eligibility. Minors are not eligible to become co owners, as also friend and relatives only blood relatives are eligible to take a property jointly. Some of the acceptable relationships where loan clubbing is possible:

Income clubbing of co applicants Combinations Income clubbing Husband wife YES parent Son YES (if only son) Parent Daughter YES (If only child) Brother- Brother YES (if currently staying together and Brother Sister Sister Sister Parent Minor child intend staying together in the new property) NO NO Not eligible for loan

The minimum age for the applicant and the co applicant to become eligible for the commencement oft eh loan is 23 years, and co applicant can be of 18 years of age if their income is not clubbed to calculate the loan eligibility.

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The maximum age at the time of loan maturity for applicant or co-applicant is 60 years or the retirement age whichever is earlier.

Documents Involved In Evaluation Of Home Loan

The documentation requirement for various categories of applicants depends on their status. For this purpose all HFIs segregate their employees in different categories. They are: Salaried Professional or Businessman

The criteria of evaluation changes according to their status. The general documents, which remain same for all the categories, are as follows:

Proof of Age
Any one of the following is considered for proof of age, they are: Passport Voters ID card PAN card Ration card Employers identity card School leaving Certificate Birth Certificate Copy of bank statements for the last six months: 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 HFIs Copy of latest credit card statement. Passport size photograph 30

Signature verification by your bankers.

Proof of Residence
Ration Card PAN Card Passport Rent agreement if any, if you are currently staying on rent. Allotment letter from your company if you are residing in company Quarters.

The documents required to be provided by the salaried class are as follows

Salary slips for the last one month. Appointment letter Salary certificate Retainer ship agreement, if appointed as consultant. From-16 issued by the employer in your name.

Proof of Employment
The proof of employment is verified by the Identity card issued by the employer Visiting card. Employers details (in case of private limited companies) The employers details are to be provided in addition to the above documents for documents for a private sector employee, they are: Name of promoters / Directors Background of promoters / Directors Number of employees List of branches / factories List of clients / Customers Turnover of your employer Annual reports of your employer for the last two to three years.

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The documents required to be submitted by the businessmen as follows

Last three years Profit & Loss Account Statement duly attested by a Charted Accountant Last three years Balance Sheets duly attested by a Chartered Accountant Last three years Income Tax Returns duly filed and certified by Income Tax authorities.

Proof of Investments
Bank statements for the last six months of all current accounts. Any other photocopies of investments held, as required by the HFI. The above are the various documents required by the businessman in addition to the documents, which are common to the entire category. The businessman is also judged on the basis of the business conducted by him, if his Business profile is in the negative list, he will be thoroughly considered for his credibility before dispersing loan, the organization and property location should not be in the negative list. These are the additional documents which are required to be looked at before going on for completing the pre sanction formalities with respect to dispersing of the home loans to the business class. The procedures involve in the disbursement of home loan by any bank entails the following steps: Home loan application form is first submitted by the customer covering all details. Checklist of requirements is requested for from the customer, and all documents are required to be submitted (copies), they are then verified whether the details are failed in correctly and whether all the documents are submitted. Additional loans, if any are applicable. Many banks provide for supplementary loan as a part of their comprehensive home loan scheme.

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The following diagram indicates the loan procedure at the bank

Customer

Branch manager

Loan Department

Legal opinion, valuation And Technical

Branch manager For large borrows Regional Officer

Risk Capturing Mechanism

One of the important aspects in the home loan financing is to ensure that the loan seeker is worthy and credible. DHFL follows the credit score model to male home loan disbursements.

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Credit score model is a risk capturing mechanism, which is used to assess the risk perspective of the loan seekers. A score of 100 is fixed, and a score of 75 is considered to be good, score of 55 is considered above average and score of 25 to be average. The prospective loan seeker on a scale of 100 is expected to get 55 avail the home loan.

STRUCTURE OF HOUSING LOANS

There are a number of parameters on which the housing loans are built: They are:

1. TENURE
The tenure of the home loan refers to the time limit for a customer to repay the loan Generally, the maximum tenure of home loans is 20 years, with a few lenders offering tenure of 20 years or more (ICICI has recently launched a 30 years loan). The longer the tenure, more a customer pays in total interest, but monthly payments will be less. So depending on the earning potential and bank balance of the customer, an appropriate can be chose. An important requirement of most banks/ HFIs is that they pay up the entire loan before you retire. The customer can always prepay the entire loan amount before it is due. As long as the tenure goes up a customer pays more interest which is up to 0.25 0.5%, generally above the home loan rates.

2. AMOUNT PAID BY THE FINANCER/ MARGIN REQUIREMENTS

The financer does not pay the entire amount of the loan, they request the customer to maintain margin, most banks go in for a 85% funding of the property value including the stamp duty and charges, it however varies among various banks. This is also treated as the margin money or own contribution required to be put by the prospective loan seeker as the contribution towards the purchase of the house. Most HFIs believe the amount paid is upfront before they release any disbursement. As a rule of thumb, depending upon the HFC, the prospective loan seeker has to cough up 15% 20% of the loan amount as a down payment. For smaller amounts, this may not be much. But for figures running into lacks, this could make loads of difference. 34

For example: An apartment costing Rs. 10lacss may get 85 per cent financing. So, customer has to arrange for the remaining Rs 1.5lacs. Some banks however make way for the payment for 90% of financing and about 100% financing for some new projects, however they are subjected to a large number of factors and constrains.

3. INTEREST RATES
Without doubt the most important parameter to factor into home loan calculations. The interest rates may vary from institutions to institutions and generally range from about 7.25% - 7.75% to around 9% Repayment is in the form of EMIs (Equated Monthly installments). The longer the tenure, the more you pay in interest, but your monthly payment will be less. The two kinds of interest rates available to a customer are: Fixed interest rates Floating interest rates Fixed interest rates remain fixed over the tenure of the loan. Floating interest rates are affected by the rates in the market, they fluctuate according to the rates issued or changed by the RBI from time to time. The finance ministers diktat on home loans does not hold for private banks. Indias largest home loan provider and second largest bank DHFL Bank on Tuesday hiked its home loan by 1%. The bank has also increased its deposit rates. As per the new rate structure, customer will have to pay 10.5% on the home loans with a floating rate, while the fixed home loan will now invite an interest of 12.5%. With this increase, the monthly installment on an Rs.1lakh loan for 20 years goes up by Rs70.

4. MISCELLANEOUS CHARGES
All banks charge certain amount of processing fee which cannot be ignored, it should be understood that along with monthly payments, the customer should also ensure that he has to pay 35

these charges, so he should careful in choosing his HFC.Miscellaneous charges generally range around 2.5% to 3%. A 1% administration fee and 0.8% processing fee on, say RS. 5, 00,000 loan, would amount to RS 10.000. Other times, it could be just one fee (either administration or processing) but could yet work out to be much more if it is considerably higher at, say, 2.5 per cent or 3 per cent. The various other fees, which you are required to be paid along with the margin amount, are:

Processing Fee
Its a fee payable to the lender on applying for a loan. It is either a fixed amount not linked to the loan or may also be a percentage of the loan amount. The loan amount received by customer can be less than the processing fee. It is charged at the submission of the application form and covers expenses incurred for processing the application form.

Prepayment Penalties
When a loan is paid back before the end of the agreed duration a penalty is charged by some banks/companies, which is usually between 1% and 2% of the amount being pre paid.

Administrative Fees
An administrative fee is charged by the HFI on the loan amount sanctioned to customer. This fee is normally payable at a time of accepting the offer letter. It is charged mainly to meet the operating expenses of the loan amount of the entire tenure.

Others
It is quite possible that some lenders may levy a documentation or consultant charge. In case of DHFL Bank the processing fee is 0.25% of the loan amount and the administrative fee is approximately 0.50% of the loan amount.

5. AMORTISATION
It means the method or the calculation by was of which the entire Principal amount/loan amount is paid through the tenure of the loan. 36

This helps the customer to know what his outstanding principal is at any point of time. There are two methods generally followed: Annual Interests Monthly Interests

Annual Interests
This is more commonly known as annual reducing balance of the principal/loan amount lent to you. In an annual rest the EMIs (fixed monthly payment for the dispersal of the loan amount) are calculated on a annual basis. The component of interest is higher in the initial years and later on the component of principal increases and the interest keeps reducing year after years. In other words, the interests in the EMI will keep reducing year after year and the principal component keeps increasing.

Monthly Interests
This is called monthly reducing balance or principal. The calculation in the above method remains the same as of the above except that the balance is calculated on a monthly basis and the EMI is broken up every month to arrive at the opening balance of the principal for the next month. It is always better for a customer to seek an HFI, which generally has monthly rests, based system; this will reduce the amount of interest paid by the customer. Many banks have adapted to the monthly rests system.

6. REPAYMENT FACILITY
The bank has given three options for repayment of the loan to suit the convenience of Borrower. Equated Monthly Installments (EMI) uniform monthly installment, inclusive of interest, for the entire repayment of only interest for the first five years, and thereafter in EMI for the next 10 years. Repayment of only interest in the first five years, 30% principal plus interest in the next five years, and balance 70% plus interest in the remaining period. Repayment to start on completion of construction, but not later than 18 months from first disbursement and in case built up houses after one month from disbursement. Interest during 37

gestation shall be paid as & when due. The repayment not to extend beyond the age of retirement of the borrower or 70 years whichever is earlier, however where co-borrower is taken, a maximum repayment period of 20 years may be considered provided the loan is liquidated within the age of 70 years of the borrower/ co-borrower having capacity to service the loan. The parameters on which risk is assessed are:

DEMOGRAPHIC PROFILE
The demographic profile includes a number of sub-parameters they are basically: Age Educational Qualifications Number of Dependents Marital status The demographic profile of the loan seeker is allotted a maximum score of 15.

Relationship with DHFL

The relationship with the bank is also considered for the benefit of its customers. The sub-parameters considered here are: Value of relationship (in terms of deposits) Number of years The relationship with the bank is given a weight of 10 on the total score of 100.

INCOME MODEL
The income module of the bank includes parameters such as: Gross Eligible Monthly Income IRR (Income to Installment Ratio) FOIR (Fixed obligations to income ratio) Net take home The income model is given the highest score of 50 points.

STABILITY AND CONTINUITY

The stability and continuity factors are based on

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Organization Profile: Govt. / public sector companies / public limited or private limited companies or partnership or others Length of service in Present job / organization. This module is provided with maximum score of about 15 points.

ASSET MODULE
The asset module include factors like Margin Net-Worth ( Total assets Total Liabilities) The asset module is given a weight of 10 on a scale of 100.

SCRUTINY OF THE DOCUMENTS

The retail processing is a procedure, which involves careful scrutiny of accounts. ICICI Bank uses a specialized system to go through the accounts, before dispersing the loan to the customer. The basic groups set up in the process of loan application are:

RETAIL MANAGER ENTERER GROUP

This group does the data entry. Upon completion of the data entry the group forwards the same to the RM Verifier group to verify and resends it to the former in case of tiny discrepancies for editing. The Loan officer enterer group and the RM Verifier group should ensure, confirm and verify the following: The organization is in the appropriate list. The organization is not in the negative list The property location is not in the negative list.

Applicant Details
Name and the personal details 39

Identity details Address Employment details salaried Financial details: Income asset ownership, Existing bank account details and credit card details Employment details: Business Financial details: Existing bank accounts and credit card details.

Existing Loan details

The name of the financial institution (in case of takeover) type of loan, purpose of loan amount etc, as per the home loan application form.

Loan Request
Including the disbursement details. Acquisition details: Gee details, loan amount recommended, name of the customer preferred branch. Reference details: Entry of at least one reference is mandatory.

Property Details
The RM enterer group and the RM Verifier group shall affix their initials on the home loan process note. Upon completion of the above activities, the field investigation, legal opinion and the technical appraisal process shall be initiated by the RM. The basic scrutiny checks followed by the bank: Field investigation study. Technical Feasibility Legal Feasibility

Field Investigation Study

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The manager RM shall go through the documents and inform the same to the field investigation agency the details:

Field Investigation Report

Residence and Reference (Tele Check) Name, Address, Office or Business telephone number of the applicant and Co-applicant. Income Tax return. The reports are to given on the letterhead of the respective approved agency by their authorized employee with agencys rubber stamp. The RM should ensure from the field investigation agency in case of Residence and reference (Tele-check) The details in the report should match with the information given in the home loan application form.

IT-Return
It should be tallied as per the office records. The manager RM shall make a tele-check to cross verify the investigation made by the agency in case, for the salaried applicants where the disbursement is greater than 10 lacks and in case of the businessman where the disbursement is greater than 10 lacks.

LEGAL FEASIBILITY
The bank should arrange for the legal opinion. The manager RM should forward it to the banks empanelled lawyer various documents for scrutiny. Some of the documents required for the scrutiny by the lawyer are: Sale agreement duly registered Own contribution receipts Allotment letter Land documents indicating ownership, if applicable registration receipt Possession letter Lease agreement, if applicable (Property bought from a development authority) No objection certificate from the developer, society or development authority. 41

In case of the construction of the house the agreement of construction of the house between the land owner and the contractor. The above are the list of documents to be referred to by a lawyer. The manger has to provide the copies of the documents should be provided by duly specifying the name of the applicant, particulars of property and list of documents attached. All correspondence with regard to the legal opinion must be carried forward between the lawyer and the RM only.

FINANCIAL SCRUTINY
Prior to disbursement, the HFI also conducts a site visit to the customers property to ensure the following:

In Case Of Under Construction Property

Stage of construction is the same as that mentioned in the payment notice given to the builder. Quality of construction Satisfactory progress of work. Lay out of the flats and area of property is within the permission granted by the governing authority Requisite certificate have been received by the builder to start the construction at the site.

In Case Of Ready / Resale Construction

External maintenance of the property. Internal maintenance of the property. Age of the building Whether the building will last the tenure of the loan Quality of construction There is no existing lien or mortgage on the property The list of valuation engineers empanelled by the bank need to take up these various documents and ensure that the report is furnished in the prescribed format and that loan amount requested by the applicant is sufficient to complete the project. The details in the property report given by the technical term and compare it with the legal opinion and application and ensure that there are no discrepancies. After completion of the above checks and scrutiny the manager RM must forward 42

the home loan process not along with the home loan application and other enclosures Legal opinion, technical appraisal report, for further processing to the Loan Manager term, after retaining in the customers file, copy of the following papers: Home loan application Legal opinion with all enclosures Technical appraisal report. Loan Department has to send the documents and papers to the RM for further scrutiny and processing of the proposals. This would increase the turnaround time, of processing and also additional charge towards the courier charges and also losing the documents in transit, In order to avoid the above discrepancies the documents are verified by the document imaging system. New gen document imaging system is introduced to facilitate electronic transmission of documents for processing of proposals by RM.

ADVANTAGES
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Most of the customers face problems regarding the rate of interest. DHFL must inform its customers about the change in ROI, It automatically changes but there is decrease in rate of interest, it doesnt change automatically.

Any change in the policies must be intimated to all the customers .DHFL should provide proper information to its customers.

There is lot of formalities in the loan disbursement process .Too much documentation is done. Customer is no aware of all the formalities. Therefore paperwork should be more friendly and clear.

Customers should be given proper information about EMI. They are generally not told how their EMI are calculated they should know EMI is calculated and of what amount.

After sale service is an issue of concern. Customers facing problems are not attended on time. Employees are generally cooperative only when the loan is sanctioned and disbursed. Therefore after sale service should be improved up to the satisfaction level of the customer.

Website of DHFL should give more options and features to customers so that they get maximum information sitting at home

Employees of DHFL should be more prompt towards customers grievances and problems DHFL should provide personalized services to customers. Comparative pricing in terms of lower interest rates and front end changes should be adopted.

Company should enter into tie ups with reputed builders and development authorities. DHFL should increase their reach by penetrating into rural and semi urban areas .They should also capitalize on present customer base by generating referrals

Aggressive marketing and great publicity through newspapers, hoarding, websites and other Medias should be done.

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DISADVANTAGES
Rejection at the first stage due to incompatibility between the borrowers qualifications and lenders requirements. It could be the age criteria, income criteria, improper documents, the institution not being able to verify the customers details properly etc. With every application form for home loans, DHFL require about 0.25% to 1% of the loan amount to be submitted as the processing fees. The processing fees are generally non-refundable. In simple words this means that for whatever reasons, if the institution finds that customer doesnt deserve the home loan this fee wont be returned. Another limitation is that desired loan is usually not sanctioned. The loan amount sanctioned is mostly based on repayment capacity of the borrower. The monthly income, financial history or other unpaid loans with the borrower, past payment record, credit card usage history, if any bounced cheque, average balance with the banks, total years in employment etc. . . . These factors all clubbed together help in the institution to decide whether it will be able to recover its money satisfactorily or not. The interest rate dilemma Another major limitation is Difference in property valuation. The company has its own experts for legal, technical and financial appraisal of the property in question. It evaluates the property on its established parameters and assigns a value to it .This value can be significantly lower than the price the customer quoted for the property. This can cause a significant gap between what is needed and what the company is willing to lend. Another is the Title deeds and NOC Documentation Problem. The Title deeds and NOC Documents have to be furnished in the banks format. Borrowers who dont provide them in proper format, will ruin the entire exercise and wont get any loan. 45

DATA ANALYSIS
1.1. Dividend per Share: =Proposed Dividend/Number of Equity Shares

For the Year 2010-11 Rs.10, 33, 59, 67,992 28, 71, 10,222 Shares For the Year 2011-12 Rs.8, 53, 36, 17,300 28, 44, 53,910 Shares Note: 1.Proposed Dividend Is Taken As Per Profit And Loss Account. 2. Number of Equity Shares= No. Of. Equity Shares Are Given In Share Capital as Per Schedule 1 = Rs.30 per Share = Rs.36 per Share

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Interpretation: from the above graph the dividend per share has decreased for the year 2011-12 compared to 2010-11.

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2.Dividend Yield Ratio= Dividend Per Share/Market Per Share

For the Year 2010-11 Rs.36*100 Rs. 2876 For the Year 2011-12 Rs.30*100 Rs. 2686 Note: 1. Dividend per Share Is Taken As Per Above Calculations. 2. Market Price Per Share Is Taken As Per Balance Sheet. = 1.12% = 1.25%

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Interpretation: from the above graph the dividend yield ratio has decreased for the year 201112 compared to 2010-11.

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3.Dividend Payout Ratio:=Dividend Per Share Earning Per Share

For the Year 2010-11 Rs.36*100 Rs.98.45 For the Year 2011-12 Rs.30*100 Rs.80.24 Note: 1. Dividend per Share Is Taken As Per Above Calculations. 2. Earnings per Share Is Taken As Per Above Calculations. = 37.39% = 36.57%

50

Interpretation: from the above graph the dividend payout ratio has increased for the year 2011-12 compared to 2010-11.

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4.Price Earning Ratio= Market Price Per Share/Earning Per Share

For the Year 2010-11 Rs.2876 Rs.98.45 For the Year 2011-12 Rs.2686 Rs.80.24 Note: 1.Market Price Per Share Is Taken As Per Balance Sheet. 2. Earnings per Share Is Taken As Per Above Calculations. = 33.47:1 = 29.21:1

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Interpretation: from the above graph the price earnings ratio has increased for the year 201112 compared to 2010-11.

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5. Ratio Of Fixed Asset To Funded Debt=Fixed Assets (AfterDep.) Funded Debt

For the Year 2010-11 Rs.2, 22, 11, 41,613 Rs.8, 77,71,97,08,058 For the Year 2011-12 Rs.2, 03, 40, 51,342 Rs.7, 59,54,90,10,918 Note: 1.Fixed Assets= Net Block as Per Schedule 8 2. Funded Debt= Loans as Per Schedule 3 = 0.0027:1 = 0.0025:1

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Interpretation: from the above graph the ratio fixed asset to funded debt has increased for the year 2011-12 compared to 2010-11.

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6. Ratio Of Fixed Asset To Funded Debt=Fixed Assets (Before Dep.) Funded Debt

For the Year 2010-11 Rs.5, 24, 45, 57,998 Rs.8, 77,71,97,08,058 For the Year 2011-12 Rs.4, 93, 85, 23,820 Rs.7, 59,54,90,10,918 Note: 1.Fixed Assets= Gross Block as Per Schedule 8 2. Funded Debt= Loans as Per Schedule 3 = 0.0065:1 = 0.0060:1

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Interpretation: from the above graph the ratio of fixed assets to funded debt has increased for the year 2011-12 compared to 2010-11.

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7.Ratio Of Reserve To Equity Capital= Reserves And Surplus Equity Capital

For the Year 2010-11 Rs.1, 49, 10, 55, 23,520*100 Rs.1, 51,97,65,86,590 For the Year 2011-12 Rs.1, 28, 52, 93, 78,563*100 Rs.1, 31,37,38,78,513 Note: 1.Reserve And Surplus Are Taken Per Schedule 2 Of The Balance Sheet. 2. Equity Capital=Share Capital as Per Schedule 1 + Reserves and = 97.80% = 98.11%

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Surplus as Per Schedule 2

Interpretation: from the above graph the ratio of reserve to equity capital has decreased for the year 2011-12 compared to 2010-11.

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8.Ratio Of Current Liabilities To Proprietors Fund= Current Liabilities Proprietors Fund

For the Year 2010-11 Rs.26, 56, 16, 40,847 Rs.1, 51,97,65,86,590 For the Year 2011-12 Rs.28, 83, 36, 87,487 Rs.1, 31,37,38,78,513 Note: 1. Current Liabilities Are Taken Except Provisions 2. Proprietors Fund=Share Capital as Per Schedule 1 + Reserves And = 0.219:1 = 0.175:1

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Surplus As Per Schedule 2

Interpretation: from the above graph the ratio of current liabilities has increased for the year 2011-12 compared to 2010-11.

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9.Total Investment To Long Term Liabilities= Shareholders Fund + Long Term Liabilities Long Term Liabilities

For the Year 2010-11 Rs.1,51,97,65,86,590+ Rs.8,77,71,97,08,058 Rs.8, 77,71,97,08,058 For the Year 2011-12 Rs.1,31,37,38,78,513+ Rs.7,59,54,90,10,918 Rs.7, 59,54,90,10,918 = 1.1729:1 Note: 1. Shareholders Fund=Share Capital as Per Schedule 1 + Reserves and Surplus as Per Schedule 2 2. Long Term Liabilities Are Taken Except Following: 62 = 1.173:1

A) Short Term Foreign Currency Borrowings from Banks B) Unsecured Foreign Currency Convertible Bonds C) Loans from Scheduled Banks (Unsecured)-Short Term D) Commercial Paper (Unsecured) E) Interest Accrued And Due

Interpretation: from the above graph the total investment to long term liabilities has decreased for the year 2011-12 compared to 2010-11.

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10. Free Reserves Per Share: =All Free Reserves/No. Of Equity Shares

For the Year 2010-11 Rs.44, 15, 89, 06,746+ Rs.9, 52, 45, 78,000+ 28, 71, 10,222 = Rs.53, 68, 34, 84,746 + 28, 71, 10,222 For the Year 2011-12 Rs.37, 20, 87, 54,723+ Rs.5, 20, 45, 78,000+ 28, 44, 53,910 = Rs.42, 41, 33, 32,723 28, 44, 53,910 Note: 1.Free Reserves= General Reserve as Per Schedule 2+ Balance of Profit And Loss Account As Per Schedule 2 2. Number of Equity Shares= No. Of. Equity Shares Are Given In Share Capital as Per = Rs.149.10 per share = Rs.186.97 per share

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Schedule 1

Interpretation: from the above graph the free reserves per share have decreased for the year 2011-12 compared to 2010-11.

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11.Return On Gross Capital Employed:=Net Profit After Tax And reference Dividend Gross Capital Employed*100

For the Year 2010-11 Rs. 28, 26, 48, 98,200*100 Rs. 1, 51,97,65,86,590 For the Year 2011-12 Rs. 22, 82, 52, 27,543*100 Rs. 1, 31,37,38,78,513 Note: 1.Net Profit = Net Profit After Tax And Preference Dividend Taken As Per Profit And Loss Account. 2. Preference Dividend Is Nil Because There Are No Preference Shares 3. Gross Capital Employed= Share Capital as Per Schedule 1 + Reserves and Surplus as Per Schedule 2 = 17.37% = 18.60%

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Interpretation: from the above graph the return on gross capital employed has decreased for the year 2011-12 compared to 2010-11.

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12.Return On Net Capital Employed:=Net Profit After Tax And Preference Dividend Net Capital Employed*100

For the Year 2010-11 Rs. 28, 26, 48, 98,200*100 Rs. 1, 25,41,49,45,743 For the Year 2011-12 Rs. 22, 82, 52, 27,543*100 Rs. 1, 02,54,01,91,026 Note: 1.Net Profit = Net Profit After Interest And Tax Taken As Per Profit And Loss Account. 2. Preference Dividend Is Nil Because There Are No Preference Shares 3. Net Capital Employed= Share Capital as Per Schedule 1 + Reserves And Surplus As Per Schedule 2 Current Liabilities As Per Schedule 7 Except Provisions. = 22.26% = 22.54%

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Interpretation: from the above graph the return on net capital employed has decreased for the year 2011-12 compared to 2010-11.

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FINDINGS
The comparative study of DHFL home loan products and process was conducted with similar services offered by other financial institutions. The study was done on the leading market players like ICICI, SBI, AXIS Bank etc. The study illustrates prevailing rate of interests, percentage of funding, tenure of home loan and fees, documentation and repayment options features etc being launched in other banks. From this study, DHFL can identify the difference between their schemes and charges charged by other banks. Therefore this can help DHFL to change their schemes accordingly so as to perform better than other financial institutions. Financial Analysis The study of Balance Sheet and Profit and loss A/c of DHFL Ltd. for two years i.e. 2010-11 and 2011-12.The financial statements for these two years help me out in preparation of Ratio Analysis and Cash Flow Statement of DHFL Ltd. From this study of Ratio Analysis and Cash Flow Statements to interpret the results that the future of DHFL Ltd. is bright.

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CONCLUSION
I have studied about DHWAN HOUSING FINACE LIMTED as at March 31, 2012, The Profit and Loss Account and the Cash Flow Statement of the Corporation for the year ended on that date, both annexed thereto & have made an interpretation of the company via ratio analysis. I have come to the conclusion that the company is on the high level of success. It is growing day by day. Its long term as well as short term stability is solid. It is capable of generating more & more returns in coming future. After analyzing, I have no doubt that if in coming future any contingent liability raises before company, it is able to face the challenge. Moreover the investors & creditors (short & Long Term) both are satisfied by the company because it is declaring high profits & returns & repaying creditors in time. So, the companys future is Bright.

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SUGGESTIONS
All one need is the courage to innovate, the skill to understand clientele and the desire to give them the best .Likewise following are some of the suggestions which would help DHFL in improvising their working styles and performance. Most of the customers face problems regarding the rate of interest. DHFL must inform its customers about the change in ROI, It automatically changes but there is decrease in rate of interest, it doesnt change automatically. Any change in the policies must be intimated to all the customers. DHFL should provide proper information to its customers. There is lot of formalities in the loan disbursement process .Too much documentation is done. Customer is no aware of all the formalities. Therefore paperwork should be more friendly and clear. Customers should be given proper information about EMI. They are generally not told how their EMI are calculated they should know EMI is calculated and of what amount. After sale service is an issue of concern. Customers facing problems are not attended on time. Employees are generally cooperative only when the loan is sanctioned and disbursed. Therefore after sale service should be improved up to the satisfaction level of the customer. Website of DHFL should give more options and features to customers so that they get maximum information sitting at home Employees of DHFL should be more prompt towards customers grievances and problems DHFL should provide personalized services to customers. Comparative pricing in terms of lower interest rates and front end changes should be adopted. Company should enter into tie ups with reputed builders and development authorities.

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DHFL should increase their reach by penetrating into rural and semi urban areas .They should also capitalize on present customer base by generating referrals

Aggressive marketing and great publicity through newspapers, hoarding, websites and other Medias should be done.

BIBILOGRAPHY

Books
Housing and society Housing finance in developing countries Housing finance and development in India. National housing finance system Rural housing finance Web sites: www.dhfl.com

Authors
Bayer, Glenn H. Buckley R.M. Grippes Mark, Boleat Padhiary, B.B

www.dhflbank.com

www.dhflinsurance.com

www.dhflfund.com

www.dhflrealty.com

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