Académique Documents
Professionnel Documents
Culture Documents
UNIVERSITY OF MUMBAI.
RAYAT SHIKSHAN SANSTHAS
KARMAVEER BHAURAO PATIL COLLEGE
VASHI NAVI MUMBAI
COLLEGE CODE-33
PROJECT REPORT
ON
COMPARISION OF HOME LOAN SCHEMES OF HDFC WITH
OTHER BANKS
SUBMITTED BY
JAYRAJ R SAWANT
PROJECT GUIDE
PROF. VIMARSHINI JAIRAM
IN PARTIAL FULLFILLMENT FOR THE COURSE OF
BACHELOR OF MANAGEMENT STUDIES (B.M.S).
T.Y.B.M.S (SEMESTER V)
ACADEMIC YEAR 2014-2015
ACKNOWLEDGEMENT
It gives me pleasure to submit this project to the University of Mumbai as a
part of curriculum of my BMS course.
I take immense pleasure in thanking Prof. Vimarshini Jairam for their
valuable assistance in completion of this project.
I take this opportunity to express my sincere gratitude to Respected
Prof. Bhosle (BMS Co-ordinator) of Karmaveerr Bhaurao pati College,
who simultaneously is my project guide also, without whose guidance,
inspiration and motivation; I could not have completed this project
successfully. I take immense pleasure in thanking them for their valuable
assistance in completion of this project.
Finally, yet importantly, I would like to express my heartfelt thanks to
my beloved parents for their blessings, my friends/classmates for their help
and wishes for the successful completion of this project.
DECLARATION
Date 10/10/2014
-----------------------JAYRAJ R SAWANT
4
UNIVERSITY OF MUMBAI
KARMAVEER BHAURAO PATIL COLLEGE
VASHI NAVI MUMBAI-400703
CERTIFICATE
This is to certify that Jayraj R Sawant student of BMS of Semester V has
completed his project on COMPARISION OF HOME LOAN SCHEMES OF
HDFC WITH OTHER BANKS has submitted a satisfactory report under the
guidance of Vimarshini Jairam of fulfillment of B.M.S course of University of
Mumbai in the Academic year 2014-2015
Project Guide
Co-ordinator
____________
_____________
University Examiner
__________________
Principal
___________
5
EXECUTIVE SUMMARY
INDEX
CHAPTER 1
1.1
INTRODUCTION
1.2
OBJECTIVE OF STUDY
1.3
IMPORTANCE OF STUDY
1.4
RESEARCH MYTHODOLOGY
1-4
CHAPTER 2
2.1
HDFC
5-8
INTRODUCTION
COMPANY PROFILE
ABOUT THE PROJECT
ELIGIBILTY
2.2
ICICI BANK
INTRODUCTION
HISTORY
9-16
PNB BANK
INTRODUCTION
HISTORY
DOCUMENTS NEEDED, SANCTION
SPEED,TENSURE, RATE OF INTERES
2.4
SBI
INTRODUCTION & HISTORY
SCHEMES PROVIDED BY SBI & ELIGIBLITY ,
CRITERIA AND DOCUMENTATION
17-21
7
PREPAYMENT & LATE PAYMENT CHARGES,
22-26
ELIGIBILITY
CHAPTER 3
27-33
THEORITICAL VIEW
3.1
3.2
3.3
3.4
3.5
RECOMMENDATION
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1
4.2
4.3
4.4
HDFC V/s ICICI V/s SBI V/s PNB HOME LOAN AGE
LIMIT
HDFC V/s ICICI V/s SBI V/s PNB TENSURE OF LOAN
HDFC V/s ICICI V/s SBI V/s PNB NO OF DAYS FOR
4.5
DISBURSEMENT
HDFC V/s ICICI V/s SBI V/s PNB CUSTOMERS FROM
4.6
DIFFERENT LEVEL(CLASS)
HDFC V/s ICICI V/s SBI V/s PNB DEFAULTERS AND
4.7
REGULAR PAYEE
PERCEPTION OF SERVICE AND PRODUCT
4.8
4.9
4.10
4.11
4.12
4.13
4.14
34-56
CHAPTER 5
5.1
CONCLUSION
5.2
BIBLOGRAPHY
57-58
CHAPTER 6
59-62
ANNEXURE
PREFACE
Modern organizations are highly complex ad dynamics systems. They operate
under very turbulent social economic and political environment. They are
required to reconcile several incompatible goals. Conflicting roles and
divergent interest they are also fraught with the use risk and uncertainties,
hence tactful management of such organization to plan to execute guide,
coordination and control the performance of people to achieve predetermined
goals. Management has to keep the organization vibrant moving and in
equilibrium. It has to achieve goal which themselves are changing it is
therefore a problem highly complex and ticklish.
This information will be asset to marketing manager in making effective
decisions. The researches are used to acquire and analyze information and to
make suggestions to management as to how marketing problems should be
solved.
The objective of this project is to enable the students to understand the
application of the academics in the real business life. I am fully confident that
this project report will be extremely useful to the management.
10
CHAPTER 1
1.1 INTRODUCTION
The roof over ones head and ground beneath ones feet count as the bare
necessities of life. Theres nothing quite like owing a home, however humble
to give that warm and glowing feeling. But when one buys a home, one has
much more than a feel good purchase in mind! Its also a crucial investment
decision, perhaps the biggest spending decision of ones life. There are ample
opportunities today for young salaried investors to plan their moves early and
buy a house at right time- and at right price. In the process, not only do they
fulfill that cherished dream of owing a house, but also put themselves on the
path to acquiring property that would meet the needs and aspirations of their
growing family, even as it leads to wealth creation. Every individual aspires to
own a home. But many either spend a lifetime saving to purchase a house or
exhaust money on monthly house rents.
Take a house loan and let the monthly rent (easily converted into
affordable
EMIs)
build
dream
home.
11
12
1.4 RESEARCH MYTHODOLOGY
Research methodology is an important part of every project. Because it helps
in knowing how to select the representative sample from the world or the
general population, the right research tools and techniques to complete the
research.
The study of the consumer behavior is important because he is the king. The
research process is based upon survey method, so in order we go to service
provider and services user which is the customers.
The research involves the following steps:
Define the problem and research objective: The problem and
objective is to assess the services offered by the various service
providers and what the customer wants.
Developing the research plan: The second stage of the research
methodology is to develop a research plan. The research plan
designed to take the decision on the data sources, research
approaches, research instruments, sampling plan and contact
methods.
Survey research: It was a descriptive research.
Research instrument: The use of an effective research instrument is
very important because through this instrument we collect data in this
project through observations and personal interview were conducted.
Personal interview: as we were doing direct selling we interacted with
my customers and asked about their views in selecting a service and
what are their wants and expectations from a service provider.
Sampling plan: After finalizing the research approach and instruments
a sampling must be designed.
Sampling unit: Different Proffessional, Charted Accounts, Tax
consultants, Lawyer, Business man, Professionals And Housewives.
Sampling Technique: Random sampling.
Research Instrument: Structured Questionnare.
Contact Method: Personal Interview.
13
Sampling size: My sample size for this Project was 200 respondents.
Since it was impossible to cover the whole universe in the available
period time.
Sampling procedure: what process should be used to collect the
sample. So, representation sample, convenience sampling is used.
Collect the information: After completing all the steps, the data are
collected from different sources.
Analyze the information: After the data is collected they are analyzed
to know the findings. The data is then tabulated to develop the
frequency distribution.
Present the findings: As the last step, the findings are presented that
are relevant to the major marketing decisions.
CHAPTER 2
2.1 HDFC BANK
INTRODUCTION
14
HDFC (Home Development Finance Corporation) Home Loan, India have
been serving the people for around 3 decades and providing various housing
loan according to their varied needs at attractive and reasonable interest
rates. Owing to their wide network of financing, HDFC Home Loans provide
services at doorstep and helps you find a home as per your requirements.
COMPANY PROFILE
HDFC Limited founded in 1997 by Ravi Maurya and Hansmukh bhai Parekh,
is an Indian NBFS focusing on home loans. 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. HDFC is the largest housing company in India
for the last 27 years.
HDFC was amongst the first to receive an in principal approval from RBI to
set up a bank in the private sector, as a part of the RBIs liberalization of the
Indian banking industry. It was incorporated on 30 th august 1994 in the name
of HDFC Bank Limited, with its registration office in Mumbai. HDFC began its
operations as a scheduled commercial bank on 16 th January 1995.
15
literature survey done, further specifying the limitation of our study and in the
last drawing inferences from the learning so far.
This project tires to evaluate how the Home loan schemes and procedure are
done in HDFC bank through their loan procedure, rate of interest as
compared
to
other
banks,
duration
of
home
loan
disburstment,
company.
SELF EMPLOYED
PROFESSIONALS
Application
photograph
form
with
Application
photograph
form
SELF
EMPLOYED
BUSINESS
with
Application
photograph
form
with
16
Identity
and
Residence
Identity
and
Proof
Proof
Latest Salary-slip
Education
Form 16
Residence
Identity
and
Residence
Proof
Qualifications
Education
Qualifications
business existence
Last 3 years Income Tax
business existence
Business profile
months
statements
bank
Last
months
bank
statements
statements
business)
(self
ELIGIBILITY
The repayment capacity as determined by the HDFC will help in deciding how
much we can borrow (the cost of the property or Rs.1crore whichever is
lower). Repayment capacity takes into consideration factors such as income,
age, qualifications, number of dependents, spouses income, assets,
liabilities, stability and continuity of occupation and saving history. And, of
course, HDFCs main concern is to make sure you can comfortably repay the
amount you borrowed
FEE:
A processing fee of 0.5% of the loan amount applied for rs.5 per rs.1000 of
the loan applied for is payable when the application form is submitted to
HDFC. This fee is in the respect of costs incidental to the application. For
example:
bank
and
17
Fees
Rs.20000
Rs.100
Rs.100000
Rs. 500
18
INTRODUCTION
HISTORY
19
owned subsidiary in 1994. The parent company was formed in 1955 as a
joint-venture of the World Bank, India's public-sector banks and public-sector
insurance companies to provide project financing to Indian industry. The bank
was initially known as the Industrial Credit and Investment Corporation of
India Bank, before it changed its name to the abbreviated ICICI Bank. The
parent company was later merged with the bank.
ICICI Bank launched internet banking operations in 1998.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a
public offering of shares in India in 1998, followed by an equity offering in the
form of American Depositary Receipts on the NYSE in 2000. ICICI Bank
acquired the Bank of Madura Limited in an all-stock deal in 2001 and sold
additional stakes to institutional investors during 2001-02.
In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group,
offering a wide variety of products and services, both directly and through a
number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become
the first Indian company and the first bank or financial institution from nonJapan Asia to be listed on the NYSE.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock
Exchange with its five million American depository shares issue generating a
demand book 13 times the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited,
with ICICI Bank. The merger was approved by shareholders of ICICI and
ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in
March 2002 and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002.
20
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs
and branches in some locations due to rumours of adverse financial position
of ICICI Bank. The Reserve Bank of India issued a clarification on the
financial strength of ICICI Bank to dispel the rumours.
ICICI Bank Home Loans, Indias leading Home Loans Provider, offers
attractive interest rates and unbeatable benefits to ensure that you get the
best deal. Keeping your convenience in consideration, we ask you for minimal
mandatory documents for the sanctioning of your home loan, to keep the
process totally hassle-free.
HOME LOAN
1) Customer must be at 21 year of age when the loan is sanctioned.
2) The loan must terminate before or when you twin 65 year of age or before
retirement,Whichever is earlier.
3) Customer must be employed or self employed with regular source of
income
21
22
DISBURSEMENT
Customer loan will be disbursed after you identify & select the property or the
home that customer are purchasing and on their submission of the requisite
legal documents.
While the customer may be under impression that the list of documents asked
for it is rather extensive. Each and every single document asked for will be
verified & check to ensure their safety. This may take some time but the
banks want to ensure a clear title and will complete all the legal & technical
verification to ensure that they have full right to their home.
The 230 a clearance of the sellers or 371 clearance from the appropriate
income tax authorities (if applicable) is also needed on satisfactory
completion of above, on registration of conveyance deed and on the
investment of your own contribution, the loan amount (as warranted by the
stage of construction) will be disbursed by ICICI.
The disbursement will be in favor of the builder/seller.
At ICICI Bank Home Loans, we disburse the loan amount after you identify
and select the property or home that you are purchasing and submit the
requisite legal documents.
While you may be under the impression that the list of documents asked for is
rather extensive, please note that it is for your own good. Each and every
single document asked for will be verified and checked to ensure your safety.
This may take some time but we want to ensure a clear title and will complete
all the legal and technical verifications to ensure that you have full rights to
your home.
Your loan will be disbursed after you identify and select the property or home
that you are purchasing and on your submission of the requisite legal
documents.
23
The 230 A Clearance of the seller and / or 37I clearance from the appropriate
income tax authorities (if applicable) is also needed.
On satisfactory completion of the above, on registration of the conveyance
deed and on the investment of your own contribution, the loan amount (as
warranted by the stage of construction) will be disbursed by ICICI Bank
Property documents (as per P&D for respective states and as asked by
empanelled lawyers for individual cases)
Facility Agreement
Disbursal Request Form
Cheque Submission Form for Pre EMI and EMI cheques
ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for
EMI / Pre EMI
Personal Guarantors Documents (PG Form, Photograph, Identity Proof,
Address Proof, Signature Verification and Income documents, if applicable)
In case of property is owned by a company
Memorandum of Entry
Form 8
NOC
AMOUNT
This largely depend on a no. of facts like ones age ,profession, salary, the city
one reside is among other such factors. it varies between 2.1lakh to 1crore
depending on the lender- as the rule of the thumb, depending on HFC one
have to cough up 15% - 20% of the loan amount as the down payment. For
smaller amount, this may not be much. But for figure remaining into lakh this
could make loads of difference. For e.g. an apartment of costing Rs 10 lakh
may get 85% financing, so one will have to arrange for remaining Rs 15 lakh.
If one takes this into amount the additional thousands will definitely put a
strain on ones finances
24
TENURE
Generally the maximum tenure of home loans is 15 years, with a few lenders
offering tenure of 20 years or more. ICICI offers 15 year loan. The longer the
tenure, the more one pay in total interest but ones monthly payment will be
less. So depending ones earning potential & bank balance one can choose an
appropriate tenure.
INTEREST RATE
Without doubt the most important parameter to factor into ones calculations.
The interest rates may vary from institution to institution. Repayment is in the
form of EMIs (equated monthly installment). The longer the tenure, the more
one pays in interest, but ones monthly payment will be less.
Tenure
Interest Type
15 -20
10 -15
5 - 10
1-5
1-5
5 - 10
10 - 15
15 - 20
Fixed
Fixed
Fixed
Fixed
Floating
Floating
Floating
Floating
Interest Rate
13.75 %
16 %
16 %
16 %
16 %
11.25 %
16 %
16 %
25
PROCESSING FEES
It is the fee payable to the lender on applying for a loan. It is either a fixed
amount not linked to the loan or may be a percent of the loan amunt. The loan
amount received by you can be less than processing fee
BENEFITS
Some of our key benefits are:
Guidance through out the process
Home loan amounts suited to your needs
Home Loan tenure upto 20 years
Simplified documentation
Doorstep delivery of home loan papers
Sanction approval without having selected a property.
Free Personal Accident Insurance (Terms & Conditions)
Insurance options for your home loan at attractive premium
26
INTRODUCTION
PNB has over 4500 branches and offices bringing the Punjab National Bank
to your doorstep. Around 2400 offices come under the network of Centralized
Banking Solution or CBS. A need for centralized banking system prompted
PNB to go computerized and what followed was the establishment of CBS in
Punjab National Bank branches in all the leading cities like Delhi, Pune,
Chennai,
Mumbai,
Ahmedabad,
Chandigarh,
Gurgaon,
Hyderabad,
27
PNB HISTORY
Punjab National Bank of India was established by Lala Lajpat Rai in the preindependence India in 1895 in Punjab, with Lahore as its head office. Today it
is the second largest public sector bank in India. It was nationalized in 1969
along with 13 other major commercial banks. The privatization started in 1989
when 30 per cent of its shares were offered to the public and it was listed on
the stock exchange.In 1992, PNB became the first Philippine bank to reach
P100 billion in assets. Later that year, privatization continued with a second
public offering of its shares. In August 2005, PNB was fully privatized. The
joint sale by the Philippine government and the Lucio Tan Group of the 67%
stake in PNB was completed within the third quarter of 2005. The Lucio Tan
Group exercised its right to match the P 43.77 per share bid offered by a
competitor and purchased the shares owned by the government. The
completion of sale is expected to speed up the development of PNBs
franchise and operational competitiveness.
Today, State Bank of India (SBI) has spread its arms around the world and
has a network of branches spanning all time zones. SBI's International
Banking Group delivers the full range of cross-border finance solutions
through its four wings - the Domestic division, the Foreign Offices division, the
Foreign Department and the International Services division.
28
DOCUMENTS NEEDED
1. Proof of identity
2. Proof of income
3. Proof of residence
4. Bank statement or Pass Book where salary or income is credited.
5. Education Certificate
6. Photos
7. Salary slips & form 16
8. Income tax return last 3 years along with balance sheets.
9. Assets liabilities statements.
10. Documents of property.
11. Estimate of construction.
12. Guarantor
SPEED OF SANCTION OF LOAN :The loan will be sanctioned within 7 working days.
29
TENURE:You can repay the loan over a maximum period of 25 years under both FRHL
and ARHL in SBI . Repayment will not ordinarily extend beyond your age of
retirement (if you are employed) or on your reaching 65 years of age,
whichever is earlier.
RATE OF INTEREST
Fixed
For
Option
period
20
for
Option
Floating
for Option
20
20
lac)
lac)
lac)
9.25
10.00
8.75
9.50
10.00
10.25
9.00
9.50
9.25
9.75
9.50
10.00
10.50
10.75
for
lac)
i) Upto 5 years
10.75
11.00
30
Fixed interest rate be reset after a block of 5 year in respect of loans
disbursed on or after 1.08.2006
DOCUMENTATION CHARGES
Rs. 1350 + Service Tax
Pre payment charges
Balance
2%
Transfer
Charges
(incase of refinance)
Part-payment Charges
Switching
2%
Nil
Charges
Nil
UPFRONT FEE
For loans up to Rs. 300 lacs = 0.50% of the loan amount with a cap of Rs.
20,000/For loans above Rs. 300 lacs =0.90% of the loan amount
31
32
Hyderabad (SBH).State Bank of India (SBI),State Bank of 13 Indore
(SBIR),State Bank of Mysore (SBM),State Bank of Patiala (SBP),State Bank
of Saurashtra (SBS) and State Bank of Travancore (SBT). Today, State Bank
of India (SBI) has spread its arms around the world and has a network of
branches spanning all time zones. SBI's International Banking Group delivers
the full range of cross-border finance solutions through its four wings - the
Domestic division, the Foreign Offices division, the Foreign Department and
the International Services division.
HISTORY
The origins of State Bank of India date back to 1806 when the Bank of
Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank
of Bengal and two other Presidency banks (Bank of Madras and Bank of
Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the
controlling interest in the Imperial Bank of India was acquired by the Reserve
Bank of India and the State Bank of India (SBI) came into existence by an act
of Parliament as successor to the Imperial Bank of India.
Today, State Bank of India (SBI) has spread its arms around the world and
has a network of branches spanning all time zones. SBI's International
33
Banking Group delivers the full range of cross-border finance solutions
through its four wings - the Domestic division, the Foreign Offices division, the
Foreign Department and the International Services division.
Main SBI Home Loan Schemes
SBI Realty : Purchase of plot of land
SBI Optima : Loan to existing home loan borrowers
SBI Green Home Loan : For homes that fight against the adverse
climate change, SBI offers 0.25% concession in interest rate and
waiver of processing fees
SBI Flexi : Combination of floating and fixed interest rate, in a pre
determined ratio
NRI Home Loans : Loans for NRIs and PIOs
SBI Freedom : Pledging other financial security than mortgaging the
house
SBI Max Gain : Operate your home loan account like your SB or
CurrenAccount
SCHEMES PROVIDED
DOCUMENTATION
BY SBI &
ELIGIBLITY ,
CRITERIA AND
34
Age
Income
Loan
Amount
Offered
Tenure
Current
Experience
Salaried
21years to 60years
Rs.1,20,000 (p.a.)
Self employed
21years to 70years
Rs.2,00,000 (p.a.)
5,00,000 - 1,00,00000
5,00,000 - 2,00,00000
5years-20years
5years-20years
2years
3years
Application
form
with
photograph
3)
Education
qualifications
slip
existence
4)
Form
16 4)
Business
profile,
Processing
cheque
credit balance
6)
Last
sheet
6
months
bank
fee statements
7) Processing fee cheque
YEAR 1 8% FIXED .
YEAR 2 & 3 9% FIXED.
YEAR 4 ONWARDS FOR LOAN UP TO 50 LAKHS 9.25% FLOATING.
FOR LOAN OVER 50 LAKHS 9.75% FLOATING.
PREPAYMENT CHARGES
If paid from own source- Nil, In other cases- 2% on principal amount prepaid
35
RUPEE
S
Upto 5 lakh
Rs. 1000
5lakh-10lakh
Rs. 2000
10lakh-20lakh
Rs 5000
20lakh-50lakh
Rs. 7000
50lakh-1crore
Rs. 8000
1crore-5crore
Rs.10,000
Above 5 crore
Rs.20,000
ELIGIBILITY
36
The minimum age of the applicant is 18 years, on the date of the sanction of
the loan. The maximum age limit for a Home Loan applicant is 70 years. It is
the maximum age limit, within which the loan should be fully repaid. The
applicant should consist of sufficient, regular and continuous source of
income for repaying the loan.
SCHEMES PROVIDED BY SBI
The Most Preferred Home Loan provider SBI Bank offers a Home Loan with
Attractive Interest Rates with Latest Schemes and Benefits. SBI also provides
a
Housing
loan
with
different
schemes.
CHAPTER 3
THEORITICAL VIEW
Schemes
Are:-
37
38
39
OPPORTUNITIES
1) The housing industry faces a severe shortage of houses. The total
demand for houses is Expected to touch around 19.40 million units by
the year 2003 of these 12.8 million
2) Dwelling units (65-98%) would be in rural areas & 6.6 millions dwelling
units (34.02%) in urban areas.
3) While the loan facility is backed by the security of property this sector
represent a low margin But on the low margin but on the same line low
risk segment. The address this
4) Market the ones lies on the HFCS to device bold & innovative
alternatives like
THREATS
The industry faces increased competition as more & more foreign
backs & Housing
40
STRENGTH
1) Save substantial interest.
2) Prepay whenever the customer.
3) Reduce their loan outstanding.
4) Access the surplus finds anytime.
5) Use surplus funds to invest when the right opportunities arises.
WEAKNESS
Product is very good but it is mainly suitable for higher income group & is not
suitable for the Middle income group
OPPORTUNITIES
There is ample scope for financing flats & apartments for the salaried class in
the higher income Group.
THREATS
1) Nationalized banks like SBI, Union Bank, PNB.
2) Private Banks likes HDFC & standard chartered & Citi Bank with its home
credit scheme.
41
PARTICULARS
HDFC
ICICI
PNB
SBI
ROI(FIXED)
14%
1-5Yrs. -16%
Up
5-10Yrs.-
9.25% (up to 20
Year 2 & 3 -
16%
lakh)
9%
10-15Yrs.-
&
16%
10% (above 20
15-20Yrs-
lakh)
to
5yrs-
Year 1 - 8%
13.75%
5 to 10yrs-10%
(up to 20 lakh)
&
10.25% (above
20 lakh )
10 to 20 yrs10.50% (up to
20 lakh)
&
10.75% (above
ROI(FLOATING)
Up to 30lakh-
1 - 5 Yrs.- 16
20 lakh)
Up to
8.75%
8.75% (up to 20
5 - 10 Yrs.-
lakh)
50lakh-9%
11.25 %
&
Above50lakh
10 - 15 Yrs.-
9.50%
-9.25%
16 %
20 lakh)
30
lakh-
5yrs-
onwards -
(above
9.25%
over
5 to10yrs-9%
(up to 20 lakh)
&
9.50%(above
20 lakh )
up to 50 lakh-
15 - 20 Yrs16 %
Year
50
lakhs-9.75%
42
10
to20yrs-
9.25% (up to 20
lakh)
&
9.75%
(above
20 lakh)
PROCESSING
0.5%
0.5%
0.5%
0.5%
FEE
PENALTY
TENURE
MINIMUM AGE
MAXIMUM AGE
2%
25 years
21
60
2%
15 years
25
55
2%
20 years
25
55
2%
25 years
25
55
3.5 RECOMMENDATION
The following suggestions are strongly recommended:
To broaden the customer base the vast middle income strata should be
fully exploited.
Simplify the procedure, reduce service charges & demand only the
basic essential proof.
43
Most banks are reluctant to advance loan to the service class. E.g. law
years, police officers etc. this aspect must be exploited.
Adoption of flexible & more lenient penalty should the
Customer fails to deposit the payment on time. The penalty should be
case to case basis rather than the same for the entire customer base.
Restriction to be reduced to bare minimum for loan advances & for
repayment. For e.g. offers Long term repayment facilities & have no
age restriction to choosing repayment. The maximum age for
repayment could be increase to 65-70 years of age. Such facility will
grow fast retail segment of the bank.
Offer multiple repayment loans services. Class to be exploited by
offering special reduced
Rates & linking the repayment from the source where the pay cheque
to the employee is issued. This need to undergo special contract with
government organization to ensure implementation
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1
44
NO OF
HDFC (RATE
ICICI (RATE
SBI (RATE OF
PNB (RATE
YEARS(LAST 5
OF
OF
INTEREST)
OF
YEARS)
2009-2010
INTEREST)
10.75%
INTEREST)
16.1%
9.79%
INTEREST)
11.15%
2010-2011
10.85%
15.25%
9.89%
11.85%
2011-2012
11.00%
14.85%
9.95%
12.20%
2012-2013
12.05%
13.85%
9.95%
12.50%
2013-2014
12.20%
12.75 %
9.98%
12.75%
X AXIS- NO OF YEARS
Y AXIS RATE OF INTEREST (%)
45
18
16
14
12
10
HDFC
8
Series 3
SBI
PNB
6
4
2
0
2009-2010
2010-2011
X axis Years
Y axis Rate of interest .
2011-2012
2012-2013
2013-2014
46
INTERPRETATION : In this Y axis is the rate of interest and X axis is the number of years,
as in this red is the HDFC bank and ICICI.
In this graph HDFC and ICICI bank has been compared with the
floating rate of interest of home loan
In last 5 years the rate of interest of both banks are fluctuating and thus
result increase and decrease in rate of interest
In the year 2009 the HDFC bank had 10.75 % of rate of interest,
whereas ICICI was 16.1% , in 2013-2014 HDFC were 12.20 % and
ICICI were 12.75%
Because of increasing rate of interest also HDFC attracts the customer
by
0.55 %
This results the rate of interest of HDFC is 0.55 % lower than ICICI
bank.
In last 5 years the rate of interest of both banks are fluctuating and thus
result increase and decrease in rate of interest
In the year 2009, the rate of interest of SBI was 9.79 % and HDFC was
10.75 % whereas in the year 2013 -2014 as the rate of interest
increase constantly the SBI manage to keep the rate of interest under
10.00% this result many of middle class and lower class people were
attracted to SBI.
Whereas HDFC were constanly increasing and at the end of 2013 the
rate of interest was 0.22 % that is 12.20 % interest and lose many of
customers
In last 5 years the rate of interest of both banks are fluctuating and thus
result increase and decrease in rate of interest
In the year 2009, the rate of interest of PNB was 11.15 % and HDFC
was 10.75 % whereas in the year 2013 -2014 as the rate of interest
increase constantly HDFC bank was 12.20% and PNB 12.75 %
This results in that HDFC try to manages to keep their old customer in
their hand and attracted their new customer by giving 0.55 % less
interest with their rival banks
4.2 HDFC V/s ICICI V/s SBI V/s PNB HOME LOAN AGE LIMIT
47
BANKS
21-26
35-45
45-60
HDFC
10%
15%
25%
ICICI
5%
40%
5%
SBI
30%
18%
2%
PNB
25%
15%
5%
40%
35%
30%
25%
21-26
20%
35-45
45-60
15%
10%
5%
0%
HDFC
X AXIS BANKS
Y AXIS- PERCENTAGE
INTERPRETATION :-
ICICI
SBI
PNB
48
In the above graph, the rate of interest of two banks have been
compared,
As Y axis indicates percentage and X axis indicates banks.
In the above graph all for banks give loan to a certain age limit where
all four banks have different age limit. : At the age of 21-26 HDFC had given loan 10%, ICICI 5% whereas SBI
and PNB have 30% and 25% respectively, In this age the SBI
considers the most because of their 20 years of loan tensure.
At the age of 35-45, HDFC had given 15%, ICICI 40%, whereas SBI
and PNB have 18% and 15% repectively, In this ICICI considers the
most because while sactioning the loan the sanctionnee should be
capable of paying the loan
At the age of 45-60, HDFC had given 25%, ICICI 5% whereas SBI 2%
and PNB 5% respectively, in this HDFC considers the most because at
this age no other comparative bank gives loan.
4.3
49
BANKS
TENSURE
HDFC
25
ICICI
15
SBI
20
PNB
25
TENSURE
25
20
TENSURE
15
10
5
0
HDFC
ICICI
X AXIS BANKS
Y- AXIS NO OF YEARS
INTERPRETATION :-
SBI
PNB
50
In the above graph, the rate of interest of two banks have been
compared,
As Y axis indicates No of years and X axis indicates banks.
In above graph the banks are been compared by the duration of
repaying the loan.
In this HDFC and PNB have maximum tensure of 25 years whereas
SBI and ICICI have 15 and 20 years repectively.
The advantage of having long tensure is the monthly installment might
be less than shot tensure but, the rate of interest will 1.50% more than
normal rate of interest.
4.4 HDFC V/s ICICI V/s SBI V/s PNB NO OF DAYS FOR
DISBURSEMENT
51
(LOAN UPTO 50 LAKHS)
BANKS
HDFC
ICICI
SBI
PNB
NO OF DAYS FOR
20
30
45
25
DISBURSEMENT(LOAN
UPTO 50 LAKHS)
30
25
20
15
10
5
0
HDFC
ICICI
X AXIS- BANKS
Y AXIS NO OF DAYS
INTERPRETATION :-
SBI
PNB
52
In the above graph, the rate of interest of two banks have been
compared,
As Y axis indicates No of Days and X axis indicates banks.
In the above graph explain us about the number of days taken for
disbursement of the loan.
As in above table HDFC takes 20 days, ICICI 30 days, SBI 45 Days
whereas PNB 25 days
As a result due to less documentation and loan sanction in 5 mins for
home loan the HFDC is the only bank who takes less days for
disbursement of loan as compared to other four banks.
4.5
DIFFERENT LEVEL(CLASS)
53
BANKS
LOWER
MIDDLE
HIGHER
HDFC
ICICI
SBI
PNB
CLASS(CUSTOMERS)
1%
5%
30%
15%
CLASS(CUSTOMERS)
19%
25%
15%
25%
CLASS(CUSTOMERS)
30%
20%
5%
10%
30%
25%
20%
Lower class
15%
middle class
Higher class
10%
5%
0%
HDFC
ICICI
SBI
PNB
X AXIS- BANKS
Y AXIS PERCENTAGE OF LOWER, MIDDLE & HIGHER LEVEL
INTERPRETATION :-
54
In the above graph, the rate of interest of two banks have been
compared,
As Y axis indicates percentage and X axis indicates banks.
As in the above graph it explains that the percent of customer that are
attracted towards these banks
As the customer attracts towards the banks because of their rate of
interest, in this case SBI had done a good job where they manage to
attract 30% out of 50% in lower level but in case other banks they do
not because of their high rate of interest.
In case of higher level of customer the people do get attracted, as they
have high interest in home loan in other hand their FD rate are higher
too.
4.6 HDFC V/s ICICI V/s SBI V/s PNB DEFAULTERS AND
REGULAR PAYEE
BANKS
DEFAULTERS
REGULAR PAYEE
55
HDFC
ICICI
SBI
PNB
15%
25%
5%
16%
35%
25%
45%
34%
45%
40%
35%
30%
25%
Defaulter
Regular Payee
20%
15%
10%
5%
0%
HDFC
ICICI
SBI
PNB
X AXIS- BANKS
Y AXIS PERCENATGE OF PAYEE AND DEFAULTERS
INTERPRETATION : In the above graph, the rate of interest of two banks have been
compared,
As Y axis indicates percentage and X axis indicates banks.
56
As in the above graph it explains the percentage of defaulter and
regular payee.
The defaulter takes place when the person Is not able to pay the
regular EMIs in that case ICICI have the most of 25 % because of high
rate of interest
Wherea the regular payee are those who pay the EMIs regularly in that
case SBI are at 5% because of low interest and long tensure.
LUCRATIVE
HDFC
80%
ICICI
70%
SBI
80%
PNB
65%
57
NOT
10%
15%
15%
20%
5%
15%
15%
15%
LUCRATIVE
NO IDEA
90%
80%
70%
60%
HDFC
50%
ICICI
SBI
40%
PNB
30%
20%
10%
0%
LUCRATIVE
X AXIS PERCEPTION
Y AXIS PERCENTAGE
NOT LUCRATIVE
NO IDEA
58
INTERPRETATION : In the above graph, the rate of interest of two banks have been
compared,
As Y axis indicates percentage and X axis perception.
HDFC and SBI have 80 % and ICICI 70%, PNB 65% are lucrative.
ICICI and SBI have 15% and HDFC 10 PNB 20 % not lucrative .
SBI, ICICI and PNB are 15% whereas HDFC 5%of no idea.
59
4.8 THINGS THAT ATTRACTED CUSTOMERS TO HDFC
70%
60%
50%
40%
PERCENTAGE
30%
20%
10%
0%
IMAGE
PERCENTAGE
SERVICE
IMAGE
65%
PRODUCT
SERVICE
25%
PRODUCT
10%
INTERPRETATION: In the above graph x axis is image, service and product and on Y axis
percentage.
In which people are attracted to image as its have a competitive image
in the market whereas service and the new products or the existing
product are 25 % and 10%
In this graph they come out with a firm percentage where they are
strong to be in this competitive market .
60
4.9 PRODUCT USED BY CUSTOMER
HDFC
25%
20%
15%
HDFC
10%
5%
0%
NAME
SAVING A/C
FIXED DEPOSIT A/C
CURRENT A/C
DEMAT A/C
LOAN
INSURANCE
MUTAUL FUNDS
HDFC(%)
9%
30%
5%
14%
25%
10%
5%
61
INTERPRETATION
In the above graph x axis is accounts hdfc have and Y axis indicates
percentage
In this people are most attracted towards the high rated fixed deposit
and low rate home loan interest.
Whereas in this fixed deposit is the most of 30% and loan is 25%
Saving, mutual fund and insurance are 9%,5% 10%.
62
HDFC
45%
15%
15%
12%
13%
HDFC
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
HDFC
63
HDFC (%)
45%
30%
25%
20%
10%
HDFC
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
HDFC
64
4.12 RELATIONSHIP PERCENTAGE OF HDFC BANK
HDFC
90%
80%
70%
60%
HDFC
50%
40%
30%
20%
10%
0%
GOOD
RATING
GOOD
AVERAGE
POOR
AVERAGE
POOR
HDFC
81%
15%
4%
INTERPRETATION
In the above graph x axis is the rating and y axis is percentage.
As this graph explain us the relationship status of bank with customers.
In which good is 81%, average is 15% and poor is 4 %.
HDFC
65
YES
NO
85%
15%
HDFC
90%
80%
70%
HDFC
60%
50%
40%
30%
20%
10%
0%
YES
NO
INTERPRETATION
In this above graph on x axis is rating and y axis is percentage
This graph explains us that the customer of HDFC are aware or not
In this yes is 85% and no is 15%
66
HDFC
80%
70%
60%
HDFC
50%
40%
30%
20%
10%
0%
YES
RATING
YES
NO
TO SOME EXTEND
NO
TO SOME EXTEND
HDFC
75%
10%
15%
INTERPRETATION:
CHAPTER 5
5.1 CONCLUSION
67
The Indian customer has come a long way from purchasing to fulfilling
their needs from buying a house customers now grab everything that
comes their way but they do their own survey of optimum loans; same
is the case with banks & housing loans
With innumerable choices before him, the customer is needed then
king.
It is therefore imperative that if the bank has to succeed in competitive
world, it should be technological starry.
Customer
centric
progressive
driven
by
highest
standard
of
cooperative governance & guided by sound ethical values & above all
should have personalized customer services.
There is scope of exploiting the vast middle income group by releasing
loans with special interest rate, which would be beneficial to both
parties
5.2 BIBLOGRAPHY
MAGAZINE :Banking Finance, Editor R.G Agarwal and Associates march 2013.
NEWSPAPER :Business standard.
68
Economic Times.
WEBSITES :www.hdfc.com
www.HDFCBANK.com
www.personalfn.com
www.PNB.com
www.SBI.com
www.ICICI.com
Search engine- www.google.com
CHAPTER 6
ANNEXURE
QUESTIONNARE
Name: ..
69
Address: ..
Contact No : ( O)
(M)
City: ...............
Pin: .
State: .
(1)
(2)
Its image
Its service
Product
(3) Are you aware of the different service offered by the HDFC Bank?
Yes
No
70
10
15
20
Savings A/c
Current A/c
Demats A/c
Credit Card
Insurance
Mutal funds
Loans
Yes
No
Dont know
(8) Which service of the bank would the rate the best?
Current A/c
Demat A/c
Credit Card
71
Insurance
Mutal funds
Loans
(9) Do you know about the extra service provided by the bank?
Yes
No
(10)Which of the following extra services of the bank would you like to go
for it?
ATM
Net Banking
Phone banking
Bill Payment
Mobile Banking
All of these
Good
Average
Poor
72
Timeless
Customer relationship
Others
Rate of interest
Very likely
Very likely
14 How will you rate HDFC Bank in Maintaining good relationship with
customers?
Good
Average
Poor