Académique Documents
Professionnel Documents
Culture Documents
I, Mr. Pavan kumar Desai here by declare that this project work which is entitled
as submitted in the partial fulfillment of the requirement for the award, the
degree of Masters of Business Administration by Karnataka University Dharwad
is my original work and is not submitted elsewhere for the award of any degree or
Diploma
Place: Hubli
Date: 10-07-2007
ACKNOWLEDGEMENT
Its human bound duty to acknowledge those personalities who contributed
immensely to my efforts and guided me in the right direction.
I express my sincere thanks to Dr.M.M.Bagali, Director, KLESs IMSR, Hubli for
giving me an opportunity to have corporate exposure and learning at CAN FIN
HOMES LTD.
I take this opportunity to express my deep sense of gratitude to Mr. V. Arun
kumar, the branch manager, CAN FIN HOMES LTD HUBLI, for extending his cooperation in completing my project work successfully.
I am grateful to my faculty Prof. Mahesh Vanjeri, faculty of KLESs IMSR hubli
for his constant encouragement, high inspiration and valuable guidance
throughout my research work.
I am even grateful to Prof. Mahantesh Kuri, former faculty of KLESs IMSR hubli
for his valuable guidance through out my project work.
I would like to express my gratitude to my parents and friends for their support
and inspiration.
Last but not the least I would like to thank all the people who directly & indirectly
helped me to complete this project successfully.
Pavan kumar
Desai
KLESs INSTITUTE OF MANAGEMENT STUDIES & RESEARCH, HUBLI
CONTENTS
Page no
1.
Executive summary
2.
Industry overview
3.
Company overview
17
4.
26
5.
28
29
34
Credit appraisal
35
NHB guidelines
45
Sanctions
47
Documentation
48
54
Disbursement
55
Recovery
58
59
Enhancement of Loan
61
6.
63
7.
Analysis
68
8.
Findings
86
9.
Conclusions
87
10. Recommendations
88
11. Limitations
89
12. Bibliography
90
13. Annexure
91
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
I TITLE OF THE PROJECT
Study of housing loan procedure and customer preference towards housing
loan.
COMPANY
@ CAN FIN HOMES LTD, HUBLI.
II BACKGROUND OF THE PROJECT
The robust growth in the demand for housing finance in recent years has been
remarkable. No doubt interest rates have gone up compared to earlier years, but
due to massive competition among the leading financial institutions, made the
customer to get the housing finance for affordable interest rates along with the
good service.
Housing finance is the long term financial assistance specifically advanced to
acquire/ purchase/ construct a dwelling unit against the security of first charge on
the property to be funded.
RATIONALITY BEHIND CHOOSING THIS PARTICULAR TOPIC
Housing finance is an area, which is becoming a major industry contributing
towards economic growth of the country. In 90s only few financial institutions use
offer housing finance but as of now it is very stiff competition among all market
players because every bank and financial institutions started offering housing
finance.
So it is essential to know why the customer prefers the particular financial
institution. . ? Even it is also important to Gain in depth knowledge and what are
the procedures that the financial institutions follows for housing loan, right from
application till the end of the loan including post sanction follow up. I.e. housing
loan procedure and the how the customer prefers the particular bank of financial
institution, has made me to choose the project.
III THE RESEARCH PROCESS
1. PROBLEM DEFINITION
Loan disbursement of Can Fin homes hubli branch has decreasing every year
where as Loan disbursement of Can Fin homes as a whole is doing good
business, so there is a need for the study
i. OBJECTIVES
1. To study the housing loan procedure of the company.
2. To assess the customer preference in respect of housing loans
SUB OBJECTIVES
1. To study about the different kinds of products under home loans
2. To have thorough knowledge about various norms and documents specific
to all the products.
3. To study the procedure for sanctioning a housing loan.
4. To assess the market potential in hubli Dharwad for housing loan.
5. To assess then the customer choice of pattern in preferring particular
financial institution for, hosing loans.
iii VARIABLES AFFECTING THE PROBLEM
Rate of interest
Quality of service
Processing of loan
Documentation
Quantum of finance
2. RESERCH PLAN
i.
ii.
iii.
IV.
SAMPLING PLAN
V.
Sampling unit:
Sampling size
: 100 samples
Sampling method
: convenient sampling.
DATA ANALYSIS
Using Statistical Package for Social Science (SPSS)
VI.
FINDINGS
1. It was found that out of 100 samples 24% of the respondents belongs to
professional category, 33% of the respondents belongs to employee category,
20% of the respondents belongs to business class and rest 13% belongs to
others.
2. The major portion respondents are in the age group of 30-36 years and 42-48.
3. The major respondents fall in the income group of Rs 10000-15000 and 1500020000.
4. The major criterion for selecting Housing loan is the rate of interest among the
respondents.
5. It was found that 64% of the respondents would go for construction of new
house and they would avail the housing finance facility.
6. Among the prospective customer, 30% of the customer preferred can fin homes
regarding their choice of financial institution with respect to housing loan.
VI. RECOMMENDATIONS
A major chunk of respondents have not availed the housing loan from the Can
Fin Homes and it should catch in the high level of awareness and popularity to
promote their home loan schemes in the fast industrializing landscape.
Since the rate of interest figures high on the list of criteria for choice of home
loan. Can Fin Homes should have to re-look at the interest rate, which is right
now higher than other financial institutions like SBI, LIC etc.
The company has to take some necessary steps to create awareness among
the public, which is low right now.
Can Fin Homes should tie up for salary deduction facility, with government
organization, educational institutions & other organizations, which will be easy
for the employees of those organizations to repay the loan without any hurdles. .
For that the company should go for Television ads and holdings and other
means of advertisement. Once in 4 month company can conduct melas also to
update the customers about its products and services.
INDUSRTY OVERVIEW
INDUSTRY PROFILE
Significantly, there has been no dearth of demand for housing and consequently for
finances for the same have been abundant.
Market dynamics play a pivotal role in determining the lending rates. Considering the
same, the housing finance industry has been in a slump in recent times.
The entry of banks into the housing finance sector has posed a serious threat to
already existent players in the field.
The housing sector is witnessing a clash between major players. Foremost amongst
this is the ICICI and HDFC imbroglio. The latter is giving sleepless nights to HDFC.
Tax sops provided by the Government of India is a significant step towards upholding
the future prospects of this industry.
Sector Comments
Nearly 25 lakh houses are built every year in India. However, the nations requirement is
around 65 lakh houses per annum. The housing sector in India is facing an estimated
shortage of 4.1 crore houses and according to the Ninth Plan, the demand-supply gap
10
in urban housing is 3.3 crore houses. In case, all these urban housing dwellings were to
be built, it would require an investment of Rs. 150,370 crore.
Traditionally, the housing finance business has been yielding a margin of around 2 per
cent. The skill of the players is in converting their advances that have a maturity period
of 15-30 years with the deposits that mature within three years. Though, the National
Housing Bank (NHB) refinances housing loan up to Rs. 2 lakh disbursed to the lower
income group, this is just a negligible proportion of advances to the major players. The
primary sources of funds are fixed deposits, debentures, private placement of bonds
and borrowings from banks and financial institutions. Thus, efficient financial
management has a key role to play in this industry.
Lending rates are predominantly market-driven and in view of the same, the housing
finance industry has been in a slump in recent times with there being low demand from
builders and investors alike. Furthermore, the entry of banks into the housing finance
sector has also not augured well for the industry. Most housing finance companies cater
mainly to the higher income group having reasonably assured creditworthiness. In a
scenario marked with the absence of speedy foreclosure regulations, most companies
prefer to stay away from rural and the Low-Income Group (LIG). However, it must be
noted that demand for housing in the Middle-Income Group and High Income Group
segments has also recorded a steady rise lately.
Market profile
The Indian housing finance sector is crowded with players of all sizes and nature:
government organizations, insurance companies, banks, housing finance companies
and co-operative organizations like HUDCO and NHB. Major players in the Industry are
HDFC, LIC Housing Finance, Dewan Housing, Can Fin Homes
Housing. The youngest entrant into the Industry, which is penetrating rapidly, is ICICI.
11
Interestingly, both Can Fin Homes Limited and its parent Canara Bank are into housing
finance. It is the same with quite a few banks, for example, Bank of Baroda and BOB
Finance, Vysa Bank and Vysyabank Housing. Though HDFC and ICICI also have their
banking arms, they compete with each other in personal loans, but not housing loans.
The industry comprises of nearly 383 housing finance companies although
disbursements from only the leading 26 institutions are eligible for re-finance from
National Housing Bank, which is the regulatory body for these companies. These
The housing sector is witnessing a clash between major players. HDFC had ruled this
sector with a lions stranglehold. It was smooth sailing for HDFC all these years and it
seemed that its monopoly was there to stay forever. However, out of the blue emerged
ICICI Home Loans, when this financial institution decided to clash arms with HDFC on
its home front. Within a year of its launch, ICICI Home Loans is giving the industry
leader, HDFC, sleepless nights.
Undercutting in the interest rates is all in the game and so is every other trick in the
book. HDFC is gathering its wits to beat its competitor at its own game. It launched an
aggressive hoarding campaign designed in the style of follow the leader. HDFC has
launched its website propertymartindia.com as a joint venture with the Mahindras.
Following suit, ICICI too, launched its home portal indiahomeseek.com. So the war
rages on both at the retail level and also in the form of a cyber war. ICICI has lowered
its prime lending rates on short and medium term loans from 13 per cent to 12.5 per
12
cent. Thus, bringing the interest on housing loans at par with the foreign exchange
loans.
HDFC also reduced the interest rates on its housing loans from 13.25 per cent to 13 per
cent. It went an extra mile to woo the borrowers of loans up to Rs. 1 crore by allowing
them the facility to either opt for a fixed interest rate of 13 per cent or a floating interest
rate of 12.5 per cent. As the name indicates, a borrower opting for the first choice will
have to repay the loan at an interest rate of 13 per cent irrespective of any future hike or
cut in the rates. Those choosing the second option would be subject to the vagaries of
the interest market and may gain or lose in the bargain. The company has also reduced
the interest on loans borrowed by non-resident Indians. These loans repayable within
five years will attract an interest rate of 11.5 per cent per annum while loans with a term
of 6-10 years will be charged interest at 12.5 per cent. The above rates are under the
fixed interest rate option. Similar floating rate loans would be charged at 5 per cent less
interest. Originally, only the commercial banks offered housing loans on floating interest
rates, now that HDFC is offering loans at a 12 per cent floating rate, ICICI also has a
floating rate home loan in the pipeline.
Price sensitivity factors
Noteworthy fact here is that NHB refinance to the HFCs comprises a mere 7% of
the loans disbursed. In other words, most HFCs have to arrange for a major part of the
disbursals from their own resources. Thus, low spreads, mismatched asset and liability,
competition posed by banks with recent regulations requiring commercial banks to
invest 40 per cent of their advances towards the priority sector, etc. pose problems for
the lending division.
The first housing finance company to cut down its interest rate after RBI slashed
the PPF interest rate by 1 per cent on January 14, 2000 was HUDCO. When the
National Housing Bank, the refinancing agency of all housing finance companies,
13
slashed its rates by up to 50 basis points, it triggered off a virtual interest war in the
industry. HDFC, ICICI, LIC Housing Finance, PNB Housing Finance Limited and a host
of others followed suit. In a game of one-upmanship, the companies have been vying
with one another to offer the best deal in a rapidly growing market.
CRISIL has forecast an increase in the interest rates in the second half of this
year. This will be due to the demand of funds by the Centre and also the corporates
exceeding the supply. The Central Government has projected a Rs. 31,000 crore higher
borrowing this year than last years figure of Rs. 86,000 crore. The State Government
borrowings would add up to a further Rs. 27,500 crore and the corporate demand would
be higher by Rs. 11,000 crore. As compared with the supply, CRISIL expects the short
Fall to be around Rs. 15,800 crore. To make up this short fall, even if there is a 1
per cent cut in CRR, interest rates are still bound to increase.
The Union Budget 2000-01 has given a shot in the arm to the industry by raising
the exemption applicable to individual borrowers on the interest paid on housing loans
to Rs. 1 lakh. The existing tax rebate of 20 per cent under section 88 of the Income tax
Act of 1961, covered repayment of housing loans, subject to a maximum of Rs. 10,000.
The same has now been doubled to Rs. 20,000. This, coupled with the lowering of the
interest rate would enable a borrower to enjoy tax exemption upto a loan of Rs. 7.5 lakh
for a 15-year term. He can now have access to better tax planning options on account
of the exemption and a lower Equated Monthly Installments (EMI) due to longer term of
repayment. Furthermore, individuals who already own a house can now invest in a new
house and yet claim exemption from capital gains on the sale of the asset. The tax
exemption on the interest paid on housing loans has also been extended up to the year
2003. This move will benefit the salaried employees, especially the middle-class
populace. A dream of providing 25 lakh rural houses has been envisaged in the budget.
Out of these, 12 lakh houses will be built under the India Awas Yojana and another
one-lakh houses would be provided under the Credit-cum-Subsidy scheme for families
with an annual income below Rs. 32,000. Moreover, around 1.5 lakh houses to be
KLESs INSTITUTE OF MANAGEMENT STUDIES & RESEARCH, HUBLI
14
constructed under the Golden Jubilee Rural Housing Finance Scheme will be eligible
for refinance from the NHB.
The industry has found new avenues such as securitisation, which are expected
to be launched in the market very soon. This mechanism would require a pool of assets
(mortgages), which would be sold by the HFCs to NHB. These assets in turn would act
as a Special Purpose Vehicle (SPV) and would be sold as pass through certificates to
investors, which initially would be from groups earning pension funds, mutual funds,
financial institutions, commercial banks and other trusts or institution which require
monthly fixed income.
The mortgages would be for loans up to a period of 10 years, on which HFCs would
earn 16 % from borrowers. The spread is to be passed back to the concerned HFCs in
the form of premium at purchase of mortgages or service charge over a period of time.
It is expected that with the success of securitization the circulation of funds would
increase coupled with cash flows generated by these funds. Furthermore, a secondary
market for mortgages would become feasible for HFCs.
Outlook
The industry is witnessing a boom at present boosted by the generous budget sops and
rock bottom real estate prices. The demand is a result of genuine individual needs for
housing. The prospects of the industry would be further strengthened on the
amendments to the Rent Control Act and repealing of the controversial Urban Land
Ceiling Act. Thus, the housing finance industry is on solid ground and has interesting
prospects ahead. As for the small players, they will have to take the harsh decision to
either exit the industry or merge with bigger entities. It is also amply clear that in the
15
future, industry leader HDFC will have to share the spoils with the aggressive Young
Turk - ICICI. Notwithstanding the competition, the customer has nothing to lose as he
can choose the best loan scheme from the ICICI and HDFC fold, with minimum interest
and a nil processing fee.
Conclusion
Despite the abovementioned factors, several bottlenecks still exist in the industry, which
have to be taken care of before any of the above can bring about an improvement in the
prospects of the industry. From an overall viewpoint demand for housing is ever rising
and the same would be reflected on the demand for funds. Hence, the profitability of the
industry should commence on the positive track in the future.
16
COMPANY OVERVIEW
17
COMPANY PROFILE
COMPANY PROFILE
Can Fin Homes Ltd (CFHL) was promoted in 1987, the "International Year
for Shelter for the Homeless" by Canara Bank in association with reputed
financial institutions including HDFC and UTI. Now NHB is also an
important equity holder in CFHL.
CFHL was set up with the mission of promoting HOME OWNERSHIP and
increasing HOUSING STOCK all over the country.
The vision of Canara Bank on the relevance of having an exclusive outfit for
providing housing finance at a time when institutional finance was not flowing to
the housing sector to the required extent and banks had constraints in locking up
funds in long term housing finance saw the birth of CFHL.
18
STANDING
Can Fin Homes Ltd. (CFHL) is the first and the biggest bank sponsored
Housing Finance Company (HFC) in the country and one among the top
players in the country's housing finance sector.
CFHL is one among the four HFCs selected by NHB in its first phase of
securitization programme.
CFHL enjoys 5 Star rating from NHB for the purpose of refinance.
CORPORATE PHILOSOPHY
Transparency in functioning.
Continuous innovation.
19
PRODUCT MIX
Can fin homes offers a products mix consisting of housing finance as well
as non-housing financial schemes.
1.
HOUSING FINANCE
A)
After having seen over a lakh satisfied customers secure their own homes, Can
Fin Homes now looks toward your home financing requirements. Having spent
over a decade in the home finance business, can fin is well placed to understand
the significance and importance of your need to own a home. This section is here
to do just that, see you realise the dream of owning a home, as swiftly and
smoothly as possible.
The main focus at Can Fin is to understand you before we go about
understanding and assessing your loan requirements. The human element of
trust, confidence and friendship is as important to us as your loan financing is.
Our trained and courteous staff ensure that you are first at ease and in full
confidence with them, before anything else. We at Can Fin call it "Friendship
Finance" since we believe in making friends with you, before we finance your
requirements.
Once you have familiarized yourself with our personnel and understood the terms
and conditions of the financing, then there's very little paperwork you need to do.
20
In fact, the paperwork required by Can Fin Homes to clear your application, is
perhaps the least in the entire home finance industry! So don't wait any longer,
the details of the documents you must provide are given in this section.
NON-HOUSING FINANCE
Can fin offers three different types of non housing financial scheme. Those are
as follows.
A)
21
ELIGIBILITY
1. Only
practicing
professionals,
i.e.,
Doctors, Architects,
Chartered
B)
Undertakings,
reputed
corporates,
banks,
financial
22
PURPOSE
For meeting any genuine needs and purposes acceptable to Can Fin
Homes, against the security of mortgage of property (land and building)
ELIGIBILITY
Individuals who are salaried persons / professionals / businessmen, who
have adequate repaying capacity supported by proof of income in the form
of salary certificate for 6 months / Income Tax Returns for the last two
financial years etc. will be eligible to apply for a loan under the scheme.
BRANCH NETWORK
23
Name of Branch
Ahmedabad
Jayanagar, Bangalore
Cunningham Road, Bangalore
Koramangala, Bangalore
Vijayanagar, Bangalore
HRBR Layout
Bangalore
Registered Office
Bhopal
Bhubaneswar
Calicut
Chandigarh
Chennai
Cochin
24
Coimbatore
Davangere
New Delhi
Hubli
Goa
Gurgaon
Hyderabad
Indore
Jaipur
Lucknow
Madurai
Mangalore
Mumbai
Navi Mumbai (Vashi)
Mysore
Noida
Patna
Pondicherry
Pune
Raipur
Secunderabad
Tambaram
Thane
Trichur
Trivandrum
Trichy
Vijayawada
Visakhapatnam
Vadodara
Velachery
Vashi
Kukatpally
Faridabad
TARGET CUSTOMERS
25
Major target customer of can fin homes is mainly rich class and upper middle
class population.
MAJOR COMPETITORS
When can fin homes started its operation in the year 1987, it was the first
financial institute which offered housing loan, during that time there were no
competitors but in later years HDFC, DHFL, ICICI, SBI and LIC were started
operations in this sector, now we can say they are the major competitors for can
fin homes.
26
INTRODUCTION
TO
THE
PROJECT
This project has two aspects namely, study of housing loan procedure and
customer preference towards the housing loan.
BACKGROUND OF THE PROJECT TOPIC
27
28
29
PURPOSE
Can Fin Homes Ltd extend financial assistance for:-
ELIGIBILITY
age
30
3.
SECURITY
a) Prime:
31
4.
32
RATE OF INTERST
Rate of interest may vary from tome to time, RO will communicate the same to
the Branches. A ready reckoner showing monthly installment (EMI chart) will
also be supplied by RO.
The rates of interest are related to the entire amount of loan and are not on slab
basis. Interest will be calculated on monthly rests basis.
33
Branches may come across cases where the applicant has availed a loan from
financial institution and approaches us for a loan on second charge/ pari- passu
basis. In such cases, for computing rate of interest, loans of both the institutions
are to be aggregated. However, loan granted by the employer of the applicant
under their own housing loan scheme should not be aggregated for this
purpose.
6.
TERM OF LOAN
Term would normally vary from 5 to 20 years or till the age of retirement in
case of salaried class or attainment of 65 years in case of others, whichever
occurs earlier.
7. REPAYMENT OF LOAN
Repayment of loan shall be made within the term stipulated, by way of Equated
monthly installments (EMI). Till the loan amount is fully disbursed, the interest
for the month in which last disbursement was made has to be recovered as
PEMI interest and repayment of the loan (EMI) should commerce from the
succeeding month.
34
II
APPLICATION
Normally, an application is to be issued after conducting a preliminary interview
by the Branch incharge, who has satisfy himself about the genuine need for the
housing loan, regular income repayment capacity and other legal/technical
aspects of the property. Issue o application merely on demand should be
avoided.
While issuing the application, a general list of documents to be submitted by the
application may be issued. When the applicant submits the loan proposal, it
should be thoroughly verified as to whether all the required information and
documentary proof i.e. salary certificate, IT returns, audited balance sheet,
profit and loss account, age proof, documents, title deeds, guarantors letter
etc. are submitted. If the proposal is complete in all respect the same may be
accepted under an acknowledgement.
PROCESSING FEE
While accepting the proposal in the aforesaid manner, the processing fee is to
be collected. The processing fee is meant for processing the proposal, legal
expenses, search fee etc. The processing fee so collected is non-refundable if
the loan is sanctioned. If the loan is not sanctioned it will be partly refunded
retaining 10% of the fee paid subjected o minimum of Rs 250-. In case reduced
loan is sanctioned, the excess of processing fee collected may be adjusted
towards the administrative fee. After the loan is sanctioned, If the applicant
withdraws his proposal, the entire processing fee is to be retained and no
amount is refundable.
35
36
1.
A)
FINANCIAL APPRAISAL
The applicant or the co applicant (joint owner of the property or spouse of
37
B)
like
conveyance, medical, paper and periodical etc., and allowance like overtime,
incentives etc., cannot be included without ensuring that these are regular
income and likely to be paid to the employee in future too.
C) The repaying capacity (how much one can pay per month towards housing
loan) is to be assessed based on the income (gross as well as net), his
commitments towards the family as could be observed from number of
dependents towards the family as could be observed from the number f
dependents, their age, (school going/college going/marriageable children) etc.
D) Normally upto 50% of the income can be taken as ones approximate repaying
capacity. However, the applicant should be left with adequate income meeting
the debt repayment obligation, for family maintenance.
E) Another important aspect is about the stability of the income. This is to be
assessed by the reckoning as to how many years the applicant has been in a
particular service / profession / business. How stable the organization is where
he is working is or the business, security of job, expected increased in income,
lifestyle, savings history, other income, other assets and liabilities, etc. Apart
from the above, his willingness to repay the loan should be assessed. The
above aspects could be assessed either from submitted reports, market
enquiries individual enquiries, family background, etc.
It is a common experience that sometimes, people including employers do not
convey any negative remarks about the applicant even if they are sure. The
38
appraiser should find cues from the remarks of the referee and make further
oral enquires to ensure that there are no adverse remarks or opinion about the
prospective borrowers.
F)
G) The genuineness and veracity of all the proof and supporting documents
submitted should be verified.
It is a common experience that sometimes, people including employers do not
convey any negative remarks about the applicant even if they are sure. The
appraiser should find cues from the remarks of the referee and make further
oral enquires to ensure that there are no adverse remarks or opinion about the
prospective borrowers.
H) It should also be ensured that the applicant has adequate liquid resources to
meet the differential cost (i.e. cost of the project minus loan) and escalated
cost, If any, so as to ensure that he will not resort to any outside borrowings.
I) Housing loans should not be considered exclusively on the basis of irregular
income like expected rent / agricultural income.
2.
TECHNICAL APPRAISAL
39
i.
40
ii.
iii.
A detailed estimate for construction as per the sanctioned plan duly certified by
a civil engineer/architect should be obtained and should confirm to quality
construction. Reasonability of estimated cost should also be ensured.
iv.
The quality of the unit should be of a reasonably high order. For ensuring the
longevity of the building the applicant should be advised to build the house with
quality materials, good workmanship etc., and at the same time thrust may also
be given to low cost technology.
B.
ii.
The future life expectancy of the building should not be less than 25
years.
iii.
iv.
v.
vi.
vii.
C.
Flat/apartment :
i.
41
ii.
LEGAL APPRAISAL
3.
Once the proposal is cleared from the financial and technical angle, clearance
from the legal angle is to be looked into. Housing loan are granted normally
against prime security of the property that is proposed to be constructed. For
security purpose it is to be examined whether the land already owned, where
the building is proposed to be constructed and/or building is proposed to be
purchased is clear from all encumbrances and the applicant has to be clear and
marketable title to enable him to create valid mortgage in favour of CFHL.
STEPS INVOLVED IN SECURITISATION
In the process of securitization of the loan, three steps are involved:
a)
a)
b)
c)
Creation of mortgage.
42
b)
i.
ii.
Stamp act
Stamp
act
deals
with
the
stamp
duty
payable
on
the
different
Registration act
It is necessary to verify as to whether a particular document requires
registration or not under the provision of Indian Registration Act.
In some of the transfers like partition, release, family arrangements, Charge, do
not require the same to be reduced in writing. If they are reduced in writing,
registration becomes compulsory.
43
iv.
Succession of Property
The succession in respect of a property of deceased person must be enquired.
If Hindus, they are governed Hindu Succession Act, Muslim by their personal
law and others by Indian succession Act.
v.
Minors Property
If the property is owned by minor, he/she is governed under Hindu minority and
Guardianship Act, Muslims by the personal Law and others by Guardian and
Wards Act.
A minors property cannot be alienated without courts permission.
vi.
Flow of Title
Under the Indian Law there is no fixed period for which the title is required to be
traced. However it has been decided to trace the title for a minimum period of
13 years.
Section 52 of the Transfer of Property Act has been amended by some of the
states under which notice of pendency of suit can be registered. Such a notice
binds a transferee who is not a party to the suit. This aspect also needs to be
looked into.
vii.
Check Points
While examining the title of deeds the following may be kept in mind:
1)
2)
3)
44
4)
5)
6)
7)
8)
45
46
e) PERIOD OF REFINANCE
Refinance from NHB will be available for a period of 20 years irrespective of
actual repayment period given to the borrower. Hence, branches are not
supposed to give the repayment period beyond 20 years. for the loans which
are eligible for refinance from NHB.
47
SANCTION OF LOANS
All the loan proposals received are to be disposed of within responsible period.
No proposal should be kept pending beyond 3 months, under any
circumstances
Power to sanction loans at the branch level vests only with the branch
incharge. Second line managers acting officials will not have powers to
sanction/recommend/disburse loans unless they are specifically empowered by
RO in writing. However during the leave period of branch incharge
disbursements under sanctioned loans may be made. Such disbursements are
subject to ratification by the regular branch incharge.
48
DOCUMENTATION
One of the foremost and major functions of CFHL is lending long term housing
loans to constituents. This results in contractual relationship between CFHL
and the customer which needs to be supported by proper evidence. To this
context documentation assumes utmost importance.
MEANING AND PURPOSE
Documentation means obtaining proper documents in appropriate forms in
accordance with the law executed by the relevant party/ies. Documentation
establishes a legal relationship between the lender and borrower. The terms
and conditions of loans, the securities offered rights and liabilities of the parties
and reduced to writing which reduces ambiguity.
Documentation is necessary to ensure due repayment of the loan by the
borrower and in case default by him, entities CFHL to legal recourse and
recovery of loans. Proper Documentation not only helps the lender in litigation
but also ensures that the borrowers do not contest on technical growth.
In short the purposes of the Documentation are;
a)
b)
Personal document
Property document
Security document
49
Personal documents:
Salaried class:
Balance sheet and profit and loss account for the past 3 years.
Statement of total Income and income tax assessment orders and returns
for the last 3 years.
Bank Statement of the last 9 months of both Savings bank account and
Current bank account(Company account)
Property document
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.
50
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.
Documents for construction of House:
Title deeds of the property, i.e. sale deed in favour of the present owner
and prior link sale deeds tracing the ownership of the property for a period
of at least 13 years. RTCs/RORs also to be submitted wherever
applicable.
51
Title deeds od the Site/plgt, i.d. sale deed in favour of the loan applicant
and prior lin+ title deedw tracing the mwnership of the roperty for a eriod
of atleast 13 yeaps. RTCs/RORs also to be submitted wh%rever
applicable.
Title deeds of the property, i.e. sale deed in favour of the present owner
and prior link sale deeds tracing the ownership of the property for a period
of atleast 13 years. RTCs/RORs also to be submitted wherever applicable.
52
Title deeds of the property, i.e. sale deed in favour of the present owner
and prior link sale deeds tracing the ownership of the property for a period
of atleast 13 years. RTCs/RORs also to be submitted wherever applicable.
No object letter from the authority for creating mortgage in favour CFHL, if
the site is allotted under leasehold right
53
Title deeds of the property, i.e. sale deed in favour of the applicant and
prior link sale deeds tracing the ownership of the property for a period of at
least 13 years
Upto date tax paid /Lease rent paid receipts of the property.
54
55
DISBURSEMENTS
FOR
PURCHASE
OF
HOUSE/FLAT/APARTMENT,
READY
FOR
PROFFESSION
Immediately on completion of documentation, inspection and ensuring the
investment of margin or differential project cost, the loan may be disbursed in
lumpsum.
The loan proceeds along with differential project cost (if not already paid) shall
be directly paid to the vendor/builder in the presence of the sub-register after
ensuring that the sale deeds as per the draft copy approved by the advocate
appointed by can fin, and all original documents of title to the property are
obtained from the vendor. The receipt issued by the register for having
accepted the documents for registration should be obtained.
56
Stage of completion
a)
Foundation
12.0%
b)
c)
d)
e)
RCC roof
10.5%
f)
Complete plastering
8.5%
g)
h)
6.5%
Sanitary works.
k)
17.5%
8.0%
5.0%
57
INSURANCE
Property offered as security to Can Fin Homes may be insured for its full value
at the cost of the borrower covering risk due to theft, burglary, natural
calamities, fire, strike, riot and civil commotion and other appropriate hazards
during the pendency of the loan. However, getting the insurance cover is left to
the option of the individual borrower. If the insurance is taken, Can Fin should
be made beneficiary of the policy until the loan is cleared. Even though insuring
the property is optional, Branches may impress the borrowers to the property
insured as the beneficial is mutual. At present Can Fin Homes has tied up with
AVIVA insurance, to provide the insurance facilty to it customer.
58
RECOVERY
PRE EQUATED MONTHLY INSTALMENTS INTEREST (PEMII)
Interest on the party disbursed loan amount is collected at the end of every
month and is called pre equated monthly installments interest (PEMII).
PEMII is calculated on daily product basis at the applicable interest rate if it is
for a fraction of month (for daily product calculation 360 days is treated as a
year). PEMII for full month is calculated on a monthly product basis.
Once the loan is fully disbursed, the PEMII for the month in which last
disbursement was made has to be collected and repayment of loan (EMI)
commences from the succeeding month.
EMI consist of both principal and interest and Presently Can fin homes Ltd
has discontinued Annual rest interest calculation method and adopted only
Daily rest basis calculation.
PENAL INTEREST
PEMII & EMI will be collected on its due dates. After which it is said to be in
default, and penal interest will have to be charged for the overdue period (i.e.
from the day following the one on which the PEMII/EMI was due till the date of
payment including the grace period. While calculating the number of days the
day of payment should be excluded).
59
recovering the loan (sending due notice, reminders, telephone calls, registered
letters, legal notice, conveyance on a/c of personal visits, suit filing expenses,
lawyers fees etc.) should be recovered separately from the borrower/s.
POST SANCTION FOLLOW UP
The entire loan sanctioned shall be recovered in terms of the repayment
condition stipulated. For this purpose a close watch and follow up of each loan
account on a day to day basis is necessary. The branch should be in constant
touch with the borrower to ensure that they are prompt in their repayments.
With all the selectivity, care and caution observed while granting the loans, it is
a common feature that some of the borrower tend to default in making payment
of the loan installments.
In respect of the defaulted loan accounts, Can Fin Homes takes the following
follow up action.
a) First reminder will be issued in the form of letter on the 16 th day of default by
ordinary post and party may be contacted over telephone wherever
possible.
b) Second reminder will be issued in the letter format, is to be sent under copy
to the guarantor (if any), and by ordinary post if the default is more than 1
months old.
c) Third reminder will be issued in the letter format, is to be sent under copy to
the guarantor (if any), and by registered post if the default is more than 2
months old.
d) In the absence of fruitful result, branch to contact borrower/s and
guarantor/sin a person
60
i.
ii.
iii.
All reminders will be sent promptly at appropriate time without any delay, to the
correct address. Personal contact will have the much desired effect. Branch will
take all necessary steps to recover the arrears within 3 months.
e)
In the absence of any response for the previous reminders and personal
contacts. A final registered letter recalling the entire loan liability will be sent to
the borrower/s or guarantor/s after the expiry of the 3 months from the date of
default duly forming them that the matter will be referred to the legal department
to initiate the legal action.
f)
Despite issuing notice, if the arrears are not cleared immediately, a legal
notice will be issued to the borrower/s or guarantor/s through the panel of lawyer
by taking prior permission from the Regional Office.
g)
In the meantime, if its ascertained that the default is not international and
the reason for awareness id genuine, branch may be recommend such cases to
RO for rephrasing the arrears.
h)
If the default is international and in spite of legal notice the overdues are not
cleared, the branch will explore the possibilities of filing suit for recovery after
ensuring the validity of loan papers, worth of the property to be attached,
chances of realizing our money etc.
i)
Not withstanding anything contained herein above, the suit/case may also
If the check given by the borrower towards loan payment bounces, legal
action may be
61
ii.
debts or
commenced.
iii.
iv.
If the property given as security for the loan is sold, disposed of,
charged, or alternated.
v.
ENHANCEMENT OF LOANS
At the time of credit appraisal itself, the Can Fin will ensure that the loan for
which the applicant is eligible is sufficient to complete the project in all respects
and he is in a position to meet the overrun cost that may occur during the
course of the construction from his own source without approaching us for
additional finance.
The loan disbursement will be made in different stages in such a way that the
last installment is released only if the building could be completing in all
respects.
In genuine and exceptional cases depending upon the creditworthiness of the
borrower, a enhancement of loan is accepted.
Before accepting the enhancement of loan the Can Fin will ensure:
a)
b)
c)
That the specific request letter duly signed by the borrowers or co-
borrowers and guarantor (if any) is submitted along with the required
processing fee and revised construction cost estimate.
62
d)
That the borrower is agreeable for the applicable higher rate of interest
for the entire loan amount (both original as well as enhanced additional loan).
This enhanced rate of interest is chargeable from the date of commencement
of availing the enhanced loan.
The request for may be accepting only when the loan account is in the pre-EMI
stage. There cannot be any reason for accepting the proposal for enhancement
when the entire loan amount is disbursed, because the final disbursement
should co inside with the completion of the construction in all respects and if at
all the borrower has invested extra money over and above the earlier estimated
margin, the same constitutes project overrun cost which the borrower is
supposed the meet at every stage out of his own sources. Hence the
reimbursement of such already incurred extra expenditure is not permissible.
On sanctioning the enhanced loan, the borrower should be provided with the
modified sanctioned letter for the enhanced loan amount duly noting down the
reference of earlier sanctioned letter, revised EMI, revised rate of interest
applicable not only to the enhanced portion but also to the originally sanctioned
amount. Acceptance note has to be obtained from the borrower along with
administrative fee on the enhanced portion of the loan.
DOCUMENTATION
In addition to the loan papers/documents obtained for the original loan amount.
It is necessary to obtained additional loan papers/documents as under:
a)
63
b)
An endorsement from the borrower under his signature, on the last page
requisite value.
d)
guarantee for the total loan to be obtained from the same guarantor or new
guarantor either for the total amount or for the enhanced loan amount.
CUSTOMER
PREFERENCE
TOWARDS
HOUSING LOAN
64
Its always worth to work on problem area rather than study of existing system.
Based on interaction with the Personnel of the organization, I could find out two
problem areas.
65
2002-03
2003-04
2004-05
2005-06
2006-07
1070
748
460
663
140
845
728
408
529
175
29
196
157
165
134
66
1200
1000
800
SANCTIONS
600
DISBURSMEN
T
NPA
400
200
0
2002-03
2003-04
2004-05
2005-06
2006-07
The sactions as well as the disbursements of Can Fin Homes ltd Hubli, are
declining year by year and the rate of Non performing asset of the branch is been
increased .
YEAR
2001-02
2002-03
2003-04
2004-05
2005-06
SANCTIONS(Rs in crs)
401.22
420.8
467.42
531.42
824.28
354.19
366.32
394.86
456.61
653.95
67
SANCTIONS(Rs in
crs)
DISBURSMENT (Rs in
crs)
200102
200203
200304
200405
200506
YEARS
68
Rate of interest
Quality of service
Processing of loan
Documentation
Quantum of finance
2. RESERCH PLAN
i. Data source: Primary data from different category of customers.
ii. Research approach: Personal interview.
iii. Research instrument: Questionnaire.
VI.
SAMPLING PLAN
Sampling unit:
Sampling size
: 100 samples
Sampling method
: convenient sampling.
69
ANALYSIS
70
Valid
24-30
30-36
36-42
42-48
48-54
54-60
Total
Frequency
13
30
20
22
9
6
100
Percent
13.0
30.0
20.0
22.0
9.0
6.0
100.0
Valid Percent
13.0
30.0
20.0
22.0
9.0
6.0
100.0
Cumulative
Percent
13.0
43.0
63.0
85.0
94.0
100.0
30
Frequency
20
10
0
24-30
30-36
36-42
42-48
48-54
54-60
Among the 100 respondents 13% belongs to the age 0f 24-30 years,
30% belongs age of 30-36years, 20% belongs to 30-36 years of age,
22% belongs to 36-42 years of age. Where as 9% & 6% belongs to the
age of 48-54 &54-60 respectively.
71
Valid
Pofessional
Employee
Businessman
Others
Total
Frequency
34
33
20
13
100
Percent
34.0
33.0
20.0
13.0
100.0
Valid Percent
34.0
33.0
20.0
13.0
100.0
Cumulative
Percent
34.0
67.0
87.0
100.0
40
30
F re q u e n cy
20
10
0
Pof essional
Employee
Businessman
Others
72
Valid
5,000-10,000
10,000-15,000
15,000-20,000
20,000-25,000
25,000-30,000
30,000&above
Total
Frequency
22
37
29
5
6
1
100
Percent
22.0
37.0
29.0
5.0
6.0
1.0
100.0
Valid Percent
22.0
37.0
29.0
5.0
6.0
1.0
100.0
Cumulative
Percent
22.0
59.0
88.0
93.0
99.0
100.0
5,000-10,000
15,000-20,000
10,000-15,000
Income is the major factor in case of housing loan. Among 100 samples
surveyed, 22% respondents belongs to the income range 5000-10000, 37%
belongs to 10000-15000. 29% belongs to 15000-20000. Where as 5%, 6% & 1%
respondents belongs to the income group of 20000-250000, 25000-30000 &
above 30000 respectively.
73
Valid
yes
No
Total
Frequency
64
36
100
Percent
64.0
36.0
100.0
Valid Percent
64.0
36.0
100.0
Cumulative
Percent
64.0
100.0
yes
74
Valid
not applicable
1-5years
5-10years
10-15years
15-20years
Total
Frequency
36
15
21
18
10
100
Percent
36.0
15.0
21.0
18.0
10.0
100.0
Valid Percent
36.0
15.0
21.0
18.0
10.0
100.0
1-5years
5-10years
10-15years
Cumulative
Percent
36.0
51.0
72.0
90.0
100.0
40
30
20
F requency
10
0
not applicable
15-20years
Among 64
respondents, 23% are staying in own house from past 5 years, 33% are
staying in own house from past 10 years.16% & 28% of the
respondents are staying in own house from 10-15 & 15-20 years
respectively.
75
Valid
not applicable
yes
no
Total
Frequency
38
45
17
100
Percent
38.0
45.0
17.0
100.0
Valid Percent
38.0
45.0
17.0
100.0
Cumulative
Percent
38.0
83.0
100.0
no
not applicable
yes
Out of 62 samples 27% of the respondents have not availed the housing loan
and rest 73% respondents have availed the housing loan.
76
If yes specify the financial institution from where you availed finance
Valid
not applicable
icici
hdfc
sbi
can fin homes
lic
others
Total
Frequency
55
4
3
18
3
14
3
100
Percent
55.0
4.0
3.0
18.0
3.0
14.0
3.0
100.0
Valid Percent
55.0
4.0
3.0
18.0
3.0
14.0
3.0
100.0
Cumulative
Percent
55.0
59.0
62.0
80.0
83.0
97.0
100.0
others
lic
sbi
not applicable
hdfc
icici
institutions
77
Valid
not applicable
service
rate of interest
brand name
early disbursements
Total
Frequency
55
16
27
1
1
100
Percent
55.0
16.0
27.0
1.0
1.0
100.0
Valid Percent
55.0
16.0
27.0
1.0
1.0
100.0
Cumulative
Percent
55.0
71.0
98.0
99.0
100.0
early disbursements
brand name
rate of interest
not applicable
service
Out of 45 samples 36% of the respondents have chosen the respective financial
institutions because of good service, 60% of the respondents because of rate of
interest, 3% & 3% of the respondents have chosen because of brand name &
early disbursements respectively. Where as no respondent has given importance
to amount of finance as well as easy documentation.
78
Rank your preferences for following financial institution in respect of housing loan
facility.
FINANCIAL
INSTITUTIO
N
ICICI
HDFC
SBI
CFHL
LIC
OTHER
S
POINTS
152
184
219
155
172
70
This is to say, if given a chance 24% of the respondents prefer SBI, 19% of the
respondents prefer HDFC, 18% of the respondents would prefer LIC. 16% & 16%
79
of the respondents prefer ICICI & CAN FIN HOMES respectively and rest 7% of
the customers prefer other financial institutions.
Processing of loan
Valid
Not applicable
dissatisfied
neutral
satisfied
highly Satisfied
Total
Frequency
55
3
17
22
3
100
Percent
55.0
3.0
17.0
22.0
3.0
100.0
Valid Percent
55.0
3.0
17.0
22.0
3.0
100.0
Cumulative
Percent
55.0
58.0
75.0
97.0
100.0
Processing of loan
highly Satisfied
satisfied
Not applicable
neutral
dissatisfied
80
48% of the respondents are satisfied and 7% are highly satisfied with the
processing of loan
Rate of interest
Valid
Not applicable
highly dissatisfied
dissatisfied
neutral
satisfied
highly satisfied
Total
Frequency
55
1
3
15
25
1
100
Percent
55.0
1.0
3.0
15.0
25.0
1.0
100.0
Valid Percent
55.0
1.0
3.0
15.0
25.0
1.0
100.0
Cumulative
Percent
55.0
56.0
59.0
74.0
99.0
100.0
Rate of interest
highly satisfied
satisfied
Not applicable
neutral
dissatisfied
highly dissatisfied
Among the 45 samples, 3% of the respondents are highly dissatisfied with the
rate of interest of their respective financial institutions, 6% of the respondents are
81
dissatisfied, and 33% said neutral. 55% of the respondents are satisfied and 3%
are highly satisfied with the rate of interest.
Quality of service
Valid
Not applicable
dissatisfied
neutral
satisfied
highly satisfied
Total
Frequency
55
3
15
23
4
100
Percent
55.0
3.0
15.0
23.0
4.0
100.0
Valid Percent
55.0
3.0
15.0
23.0
4.0
100.0
Cumulative
Percent
55.0
58.0
73.0
96.0
100.0
Quality of service
highly satisfied
satisfied
Not applicable
neutral
dissatisfied
82
51% of the respondents are satisfied and 9% are highly satisfied with the quality
of service.
Valid
Not applicable
dissatisfied
neutral
satisfied
highly satisfied
Total
Frequency
55
8
12
23
2
100
Percent
55.0
8.0
12.0
23.0
2.0
100.0
Valid Percent
55.0
8.0
12.0
23.0
2.0
100.0
Cumulative
Percent
55.0
63.0
75.0
98.0
100.0
satisfied
Not applicable
neutral
dissatisfied
83
Out of 45 samples, 18% of the respondents are dissatisfied with the legal
procedures & documentation followed by their respective financial institutions
and 27% said neutral. 51% of the respondents are satisfied and 4% are highly
satisfied with the documentation.
Quantum of finance
Valid
Not applicable
dissatisfied
neutral
satisfied
highly satisfied
Total
Frequency
55
7
13
22
3
100
Percent
55.0
7.0
13.0
22.0
3.0
100.0
Valid Percent
55.0
7.0
13.0
22.0
3.0
100.0
Cumulative
Percent
55.0
62.0
75.0
97.0
100.0
Quantum of finance
highly satisfied
satisfied
Not applicable
neutral
dissatisfied
84
Among the 45 samples, 16% of the respondents are dissatisfied with the
quantum of finance provided by their respective financial institutions and 29%
said neutral. 49% of the respondents are satisfied and 6% are highly satisfied
with the quantum of finance.
Valid
yes
no
Total
Frequency
64
36
100
Percent
64.0
36.0
100.0
Valid Percent
64.0
36.0
100.0
Cumulative
Percent
64.0
100.0
85
60
50
40
30
Frequency
20
10
0
yes
no
With the above data we can say, 64% of the respondents would go for
construction of new house or modification in near future and rest 36% of the
customer would not go for new house construction or modification.
Valid
yes
no
Total
Frequency
64
36
100
Percent
64.0
36.0
100.0
Valid Percent
64.0
36.0
100.0
Cumulative
Percent
64.0
100.0
86
no
yes
The above data shows that, among 100 samples, 64% of the respondents would
go for housing finance facility and rest 36% would not. This 64% of the
respondents could be prospective customers for the can fin homes.
87
Valid
Frequency
40
9
8
13
18
8
4
100
Percent
40.0
9.0
8.0
13.0
18.0
8.0
4.0
100.0
Valid Percent
40.0
9.0
8.0
13.0
18.0
8.0
4.0
100.0
Cumulative
Percent
40.0
49.0
57.0
70.0
88.0
96.0
100.0
others
lic
sbi
hdfc
icici
Out of 100 samples, 60% of the respondents would avail the housing loan,
among them 15% of respondents prefer ICICI, 13% of respondents prefer HDFC,
22% of respondents prefer SBI, 30% of respondents prefer CAN FIN HOMES,
13% of respondents prefer LIC and rest 7% of respondents prefer other financial
institutions.
88
FINDINGS
1. It was found that out of 100 samples 24% of the respondents belongs to
professional category, 33% of the respondents belongs to employee category,
20% of the respondents belongs to business class and rest 13% belongs to
others.
2. The major portion respondents are in the age group of 30-36 years and 4248.
4. The major criterion for selecting Housing loan is the rate of interest among the
respondents.
5. It was found that 64% of the respondents would go for construction of new
house and they would avail the housing finance facility.
6. Among the prospective customer, 30% of the customer preferred can fin
homes regarding their choice of financial institution with respect to housing
loan.
89
CONCLUSIONS
We can conclude from the above findings that
1. Out of 100 respondent the major covered by employee category followed by
professional category.
2. Rate of interest followed by the quality of the service are the major criteria of
availing housing loan facility.
3. It was found that out 45 existing customers, only 3 respondents have availed
the loan from CAN FIN HOMES, feed back with respect to service was
satisfactory.
4. Even it was found, 55 prospective customers are not much aware of CAN FIN
HOMES.
5. Among the prospective customer, 30% of the customer preferred can fin homes
regarding their choice of financial institution with respect to housing loan but it
was found that they are lagging in obtaining proper information
90
RECOMMENDATION
A major chunk of respondents have not availed the housing loan from the Can
Fin Homes and it should catch in the high level of awareness and popularity to
promote their home loan schemes in the fast industrializing landscape.
Since the rate of interest figures high on the list of criteria for choice of home
loan. Can Fin Homes should have to re-look at the interest rate, which is right
now higher than other financial institutions like SBI, LIC etc.
The company has to take some necessary steps to create awareness among
the public, which is low right now.
Can Fin Homes should tie up for salary deduction facility, with government
organization, educational institutions & other organizations, which will be easy
for the employees of those organizations to repay the loan without any hurdles.
For that the company should go for Television ads and holdings and other
means of advertisement. Once in 4 month company can conduct melas also to
update the customers about its products and services.
91
LIMITATIONS
.
1. Sampling size was very less. It may not represent the whole population
2. The duration of the project was only 8 weeks. So detailed research was not
possible.
92
BIBLIOGRAPHY
MARKETING MANAGEMENT
BY KOTLER & KELLER
MARKETING RESEARCH
BY TULL & HAWKINS.
BUSINESS WORLD
BUSINESS INDIA
93
ANNEXEURE
94
QUESTIONNIRE
I, Pavan desai, student of KLESs IMSR undertaking a Project at Can Fin Homes Ltd Hubli
on the topic of Customer Preference regarding Home loans. I request you to fill this
questionnaire. The purpose of information provided by you will be used for academic
purpose and I assure you that the information provided will be kept confidential. I request
you for your kind Co-operation
Name
____________________________________
Age
____________________________________
Occupation
____________________________________
Company
____________________________________
Designation
____________________________________
5000-10000
Address
10000-15000
15000-20000
20000-25000
25000-30000
Above 300000
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Tel/Mob/e-Mail
_____________________________________
95
________________________________
1.
2.
5-10 years
10-15 years
15-20years
3.
Have you taken any financial assistance for house construction or modification?
Yes
No
If No go to question- 8
4.
If yes please specify the financial institution from which you have availed finance?
ICICI bank
HDFC
SBI
Can fin Homes
5.
6.
LIC
Brand name
Easy documentation
Early disbursements
Rank your preferences for following financial institution in respect of housing loan
facility is considered?
First preference-1
Last preference-6
FINANCIAL INSTITUTIONS
ICICI
HDFC
SBI
CAN FIN HOMES
LIC
OTHERS_________________
RANK
96
7.
Are you satisfied with the service provided by existing financial Institution?
Highly
Dissatisfied
Processing of
Loans
Rate of
Interest
Quality of
Services
Legal procedures &
documentation
Quantum of
Finance
8.
Would you like to go for construction of new house or modification in near future?
Yes
If No go to question - 11
9.
No
10.
No
HDFC
SBI
LIC
OTHERS ______________
11. Your opinion about Can Fin Homes Housing finance facility?
_______________________________________________________
_______________________________________________________
_______________________________________________________
97
98