Академический Документы
Профессиональный Документы
Культура Документы
On
Performance Of HDFC Home Loan
______________________________________________________
By:
Rajkumar Singh
MBF-0918
2009-2011
______________________UTTAR PRADESH_________________
CONTENTS
1. Certificate
2. Acknowledgement
3. Preface
4. Executive Summary
5. Introduction
6. Business objective
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HDFC Home Loans
7. Research Methodology
9. Repayment terms
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HDFC Home Loans
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HDFC Home Loans
17. Recommendation
18. Bibliography
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HDFC Home Loans
ACKNOWLEDGMENT
The project would not have been completed without the mention of those, who have
spared their valuable time and shared their experience in making this project successful.
I would like to convey my sincere thanks to AIT School of Management, for providing
me this opportunity to carry out analysis of one of its ambitious projects. I would also like
to thank the management and the staff of Apeejay Institute for their guidance and co-
operation which they had extended over the entire duration of my project.
I shall be thankful to Dr. I,A. Khan, Assistant faculty of Finance, for their guidance and
Finally, I would not have been to finish my report with the support of my father Shri
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HDFC Home Loans
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PREFACE
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HDFC Home Loans
Preface
It is a matter of great satisfaction and privilege for us to place before the esteemed readers.
This report aimed at analytical study of other financial institution dealing in home loan
scheme with home loans scheme of Housing Development Finance Corporation limited.
A commitment to the community and a commitment to the economic growth are called as
HDFC offers loans for buying homes, for constructing home or for repairing or renewing
the home. HDFC provides loan for purchasing, the land from approved agencies. Thus
A customer can even own a single-family bungalow or row house. HDFC focuses on
providing good services and thus has no substitute in the banking world. The system
delivery process and the interaction occur with in the company or across the world
through cyber cafes. Trust and transparency are two important assets in the housing
harvesting technology.
Most of the B-Schools realized the importance of practical knowledge imparted in HDFC
and thus mid-module/ final projects that are in corporate in the syllabus are being
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HDFC Home Loans
EXECUTIVE SUMMARY
Housing is one of the basic human needs of the society. It is closely linked with process of
there is a great need and scopes for the development of housing sector, unfortunately for
some reason or the other, the housing sector in India has remained underdeveloped in the
past, however, it is hoped that there would be improvement in the near future.
The housing finance industry can be broadly classified into two categories namely formal
(organized) and informal (unorganized) sector. The formal sector, which companies of
various public and private sector institution, normally finances around 85 percent of the
total funds required in the housing industry. On the other hand, informal sector comprising
of household savings, disposal of existing property, borrowing from friends, relatives and
money lenders, etc., meets around 15 percent funds requirement of this industry.
This report aimed at analytical study of Home loan scheme of Housing Finance
Doing”.
In brief I have tried to make a comparative study of home loan schemes. The financial
1. ) HDFC
2.) ICICI
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HDFC Home Loans
I have done study on the above points and tried to find out that how the bank decide the
eligibility criteria for any person and how they deviate from other norms in the case of
large project or to fulfill their targets. I have collected the primary data from the branches
of some banks.
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HDFC Home Loans
The basic objective behind this project is to get a practical knowledge about the Home
I have done a thorough study from login to disbursement of proposal so that a common
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HDFC Home Loans
Objective
and
Rationale
of the Project
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HDFC Home Loans
• to help the potential customer to realize his/her long cherished dream of owning a
• And by incorporating all the feasible salient features which can go along with
product keeping in mind the ethics and wellness of huge customer base, various
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HDFC Home Loans
RESEARCH METHODOLOGY:
The study of housing finance companies is not an easy job. For such study a considerable
amount of secondary data was required, personal interview with the main HFC’s
managers were done. These interviews were the great source of knowledge. Much
information like HFC’s organization background and overview was collected through
internet and official websites of the companies. Other things like eligibility for taking
loan, amount of loan, duration of loan, interest rate, EMI and other related forms and
housing finance as things to be noted before taking loan and benefits of housing loan,
calculating EMI and pre EMI were collected through Internet, In this report both type of
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HDFC Home Loans
DATA COLLECTION:
Collection of data was done with the help of personal interview, with the managers and
counselors and other staff members of main HFC’s. But the answers of many question
were in the company literature and brochures of the schemes and related particulars.
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HDFC Home Loans
INTRODUCTION
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HDFC Home Loans
INTRODUCTION
S
helter is a basic human need. Secured ownership of a house can raise the
great need and scopes for the development of housing sector, unfortunately for some
reason or the other, the housing sector in India has remained underdeveloped in the past,
Housing Finance is a growing industry. There is a substantial gap between demand and
houses will be around 4.5 million units, leaving a gap of one million housing units
annually. Hence, based upon this estimate the cumulative shortage of housing may reach
Presently, funds require per house dwelling shelter are so high that the individual savings
is not adequate to meet the expenditure of house building. As a result, there is great
demand for external housing finance.
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HDFC Home Loans
Housing was given due priority in 1998 When a National policy was announced. The
policy reflected the thrust that housing was not merely consumption expenditure but also a
productive investment which would provide economic activity in the country beside this;
the policy also envisaged that an impetus given to housing would stimulate economic
The setting of the National Housing Bank marked the new era
this field. For example, Life Insurance Corporation of India and General Insurance
Corporation came with various schemes for financing the housing unit. In 1970, Housing
was setup with the objective of housing and urban development as well as infrastructure
To strengthen the finance in this sector, an apex level institution named National Housing
Bank was set up in 1998 under the separate Housing Bank Act 1987. Various nationalized
and other banks also set up housing finance companies as their subsidiaries such as Canfin
Homes Ltd., GIC Grih Vitta Ltd., LIC Housing Finance Ltd., PNB housing Finance Ltd.,
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HDFC Home Loans
SBI Home Finance Ltd., etc. today there are more than 350 companies operating in the
organized sector, out of which the National Housing Bank for refinance recognizes 22.
the total funds required in the housing industry. On the other hand,
from friends, relatives and money lenders, etc., meets around 50 percent funds
The housing sector plays an important role in the economic development of the country.
Every rupee invested in housing adds 78 paise to the GDP. Over 269 industries are
20 million housing units in the country with an estimated investment requirement of over
Rs 1500 billion. In this context it is important to note that that the organized housing
finance industry barely accounts for 30% of the home loans disbursed in the country.
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HDFC Home Loans
In the last few years, housing loan scenario in India has changed drastically. It has taken a
front seat and people are looking forward to owning their own houses. It is no more a
dream that required lifetime saving and a difficult decision to make. Today the new home
purchase loan is much easily available and is much cheaper than what was available
earlier. Banks are now everywhere and the schemes are implemented even in villages and
smaller towns. The housing loans are popular there too, however, the activity of building
flats is little slow. It would not be wrong to say that there has been
a boom in the home loan market and with this boom; there is also
The main reason for this boom in home loan market is the change
many banks are offering home loans and this is available at low EMIs (Equated monthly
Instalments). High EMIs are now a thing of past. Today lending rate is in the range of 9%
to 13.25 %.
types. One is the fixed rate loan and the other is the floating
rate loan. In the fixed rate loan, whatever interest is fixed on the start of loan is carried on
for the complete period. However, in the other one, the interest rate is not fixed and as the
interest rate goes up or low the effect is directly transferred to the person who is taking the
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HDFC Home Loans
loan. In the last few years the floating interest rate has been a favourite among most of the
There is also a trend to opt for home construction loan. This loan is available to those who
want to design their homes according to their requirement and taste. In other words, this
loan is meant for those who themselves want to construct their new home.
As shared earlier, taking a loan is not a difficult task. However, before taking a loan, one
must realize that the relationship with the bank will be for a longer period usually 15 to 20
years so one must ensure faith and integrity in bank. Apart from low rate of interest, the
bank should also provide some value added services. The other thing is to look into is the
property that is to be brought. Making sure that the builder has all sanctions and facility to
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HDFC Home Loans
PROFILE
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HDFC Home Loans
Against the milieu of rapid urbanisation and a changing socio-economic scenario, the
demand for housing has grown explosively. The importance of the housing sector in the
economy can be illustrated by a few key statistics. According to the National Building
Organization (NBO), the total demand for housing is estimated at 2 millions units per year
and the total housing shortfall is estimated to be 19.4 million units, of which 12.76 million
units is from rural areas and 6.64 million units from urban areas. The housing industry is
the second largest employment generator in the country. It is estimated that the budgeted 2
million units would lead to the creation of an additional 10 million man-years of direct
Having identified housing as a priority area in the ninth Five Year Plan (1997-2002), the
National Housing Policy has envisaged an investment target of Rs. 1,500 billion for this
sector. In order to achieve this investment target, the Government needs to make low cost
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HDFC Home Loans
BACKGROUND:
HDFC Bank one amongst the firsts of the new generation, tech-savvy commercial
banks of India, was set up in August 1994 after the Reserve Bank of India allowed setting
up of Banks in the private sector. The Bank was promoted by the Housing Development
India. HDFC Bank began operations in 1995 with a simple mission to be a “World-class
Indian Bank”. Currently (2011), HDFC Bank has over 800 branches located in over 350
cities of India, and all branches of the bank are linked on an online real-time basis. The
bank offers many innovative products & services to individuals, corporate, trusts,
The bank also has over 1800 ATMs. In the next few months the number of branches and
ATMs should go up substantially.
The authorised capital of HDFC Bank is Rs.550 crore (Rs.5.5 billion). The
paid-up capital is Rs.457.74 crore (Rs.4.7 billion). Net Profit for the year
ended January 27, 2011, is Rs 1,088 crore (Rs 10.88 billion) compared to
The HDFC Group holds 22.1% of the bank's equity and about 19.4% of
the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign
shareholders.
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HDFC Home Loans
BUSINESS OBJECTIVES:
The primary objective of HDFC is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner, and to
promote home ownership. Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall domestic
financial markets.
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HDFC Home Loans
ORGANISATIONAL GOALS:
• Maintain its position as the premier housing finance institution in the country.
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HDFC Home Loans
eminent persons who represent various including finance, taxation, construction and urban
policy and development. The board primarily focuses on strategy formulation, policy and
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HDFC Home Loans
1. Vision of HDFC
• To enhance residential housing stock in the country through the provision of housing in a
systematic and professional manner, and to promote home ownership.
• To increase the flow of resources to the housing sector by integrating the housing finance
sector with the overall domestic financial markets.
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HDFC Home Loans
2. Mission of HDFC
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HDFC Home Loans
BOARD OF DIRECTORS:
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HDFC Home Loans
PRODUCTS OF HDFC:
• Home loan
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HDFC Home Loans
With an HDFC Home Loan, you can bring to live the house of your dreams. You
bungalow or row house as well as a house that you like anywhere in India HDFC Home
Loans are easy to arrange and can be customized according to your needs and repayment
capability.
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HDFC Home Loans
• Mr. Deepak Parekh, chairman, HDFC Ltd. Conferred with the prestigious
• HDFC receives award for ‘The best presented Accounts’ of the Institute of
2005.
• Mr. Deepak Parekh awarded the ‘Hall of Fame’ award by outlook money
magazine.
• HDFC receives the ‘Dream Home’ award for the best Housing Finance
November 2004.
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HDFC Home Loans
• 1st Prize at the New York Festival’s Gold Midas Awards for Environmental
2004.
in March 2004.
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magazine.
• One of the top Ten - Most Admired Companies in India’ – 2003 by Business
Barons.
• One of the Top Ten – Most Admired CEOs in India ‘– 2003 by Business
• India’s Biggest Wealth Creator in the banking and financial services by the
world.
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HDFC Home Loans
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HDFC Home Loans
THE
CHIRMAN
MANAGER MANAGER
MANAGER
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HDFC Home Loans
DETAIL STUDY
OF HDFC
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HDFC Home Loans
HOUSING DEVELOPMENT
FINANCE CORPORATION (HDFC)
HDFC offer the loan for buying, constructing, extending, or renovation and home equity
loan. HDFC also finance for land purchase from approval agencies to enable you to
construct a home of your choice. Your can buy a self- contained flat in an existing or
single family or multifamily bungalow or house. HDFC also provide the farcicality of
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HDFC Home Loans
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HDFC Home Loans
LOAN AMOUNT:
agreement value, stamp duty and registration charges. HDFC's Home Improvement Loan
facilitates internal and external repairs and other structural improvements. HDFC finances
up to 85% of the cost of renovation (100% for existing customers). For Land Purchase
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HDFC Home Loans
The repayment options are flexible and customized to suit the individual needs of the
customers. While repaying the loan amount customers can choose from Fixed Rate of
retirement age, whichever is earlier. For home extension maximum term is 20 years
Helps young executives take a much bigger loan today based on an increase in their future
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HDFC Home Loans
Often customers, parents and their children, wish to purchase properties together. The
parent is nearing retirement and their children have just started working. This option helps
such customers combine the incomes and take a long term home loan where in the
Customers purchasing an under construction property need to pay interest (on the loan
amount drawn based on level of construction) till the property is ready. To help customer
save this interest, we have introduced a special facility of Tranche Based EMI. Customers
can fix the instalments they wish to pay till the time the property is ready for possession.
The minimum amount payable is the interest on the loan amount drawn. Anything over
and above the interest paid by the customer goes towards Principal repayment. The
customer benefits by starting EMI and hence repays the loan faster.
Accelerated Repayment Scheme offers you a great opportunity to repay the loan faster by
increasing the EMI. Whenever you get an increment, increase in your disposable income
or have lump sum funds for loan prepayment, you can benefit by
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HDFC Home Loans
3. You can invest lump sum funds rather than use it for loan prepayment. The return from
the investments also gives you the comfort of paying the increased EMI.
The customer can give standing instructions to replay your Home Loan EMIs directly
from your HDFC Bank Savings Account which does away with the cumbersome process
of procuring, signing and tracking post- dated cheques. While repaying the loan amount
customers can choose from Fixed Rate of Interest or Floating Interest Rate.
A person seeking investments for house or a property opts for Home Loans for a variety
(HFCs) now offer individuals with various alternatives to choose from while buying a
home loan. And the availability of Home Loans offered is as varied as their requirements.
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HDFC Home Loans
This is the basic home loan for the purchase of a new home.
This loan is available for the construction of a new home on a said property. The
documents that are required in such a case are slightly different from the ones you submit
for a normal Housing Loan. If you have purchased this plot within a period of one year
before you started construction of your house, most HFCs will include the land cost as a
component, to value the total cost of the property. In cases where the period from the date
of purchase of land to the date of application has exceeded a year, the land cost will not be
These loans are given for implementing repair works and renovations in a home that has
already been purchased, for external works like structural repairs, waterproofing or
internal work like tiling and flooring, plumbing, electrical work, painting, etc. One can
avail of such a loan facility of a home improvement loan, after obtaining the requisite
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HDFC Home Loans
An extension loan is one which helps you to meet the expenses of any alteration to the
existing building like extension/ modification of an existing home; for example addition
of an extra room etc. One can avail of such a loan facility of a home extension loan, after
This is available for those who have financed the present home with a home loan and
wish to purchase and move to another home for which some extra funds are required.
Through a home conversion loan, the existing loan is transferred to the new home
including the extra amount required, eliminating the need for pre-payment of the previous
loan.
This loan is available for purchase of land for both home construction or investment
purposes.
This loan is sanctioned to pay the stamp duty amount that needs to be paid on the
purchase of property.
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HDFC Home Loans
8. Bridge Loans:
Bridge Loans are designed for people who wish to sell the existing home and purchase
another. The bridge loan helps finance the new home, until a buyer is found for the old
home.
Balance Transfer is the transfer of the balance of an existing home loan that you availed
at a higher rate of interest (ROI) to either the same HFC or another HFC at the current
Refinance loans are taken in case when a loan for your house from a HFI at a particular
ROI you have taken drops over the years and you stand to lose. In such cases you may opt
to swap your loan. This could be done from either the same HFI or another HFI at the
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HDFC Home Loans
This is tailored for the requirements of Non-Resident Indians who wish to build or buy a
home or property in India. The HFCs offer attractive housing finance plans for NRI
The repayment capacity as determined by HDFC will help to decide how much we can
• Number of dependents
• Spouse’s income
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HDFC Home Loans
• Stability
• Continuity of occupation
• Saving history
And, of course, HDFC main concern is to make sure that you can comfortably repay the
Yes, an individual can avail of HDFC home loan to repay a loan of his employer or
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HDFC Home Loans
Home Loans can be applied for either individually or jointly. Proposed owners of the
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HDFC Home Loans
For Resident Indians, in the fixed rate category, HDFC offers loans at the rate of 13.25%.
Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The
interest rate on the loan will be revised every three months from the date of first
disbursement, if there is a change in RPLR, the interest rate on the loan will change.
However, the EMI on the home loan disbursed will not change. If the interest rate
increases, the interest component in an EMI will increase and the principal component
will reduce resulting in an extension of term of the loan, and vice versa when the interest
rate decreases.
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HDFC Home Loans
A processing and administration fees is 0.5% on loan amount is to be payable along with
For the pre-payment, charges are 2% for early redemption on fixed rate home loan
scheme. However under the adjustable rate scheme 2% will be charge only in case of
commercial refinance.
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HDFC Home Loans
The objective of SURF is to provide the customer with a repayment schedule, which is
linked to his expected growth in income. It also helps a customer get a larger amount of
loan as compared to the loan under the normal housing loan. The customer can avail of a
higher amount of loan and pay lower EMIs in the initial years. Subsequently, the
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HDFC Home Loans
Balloon Payment is an enhancement tool, which helps in increasing the loan eligibility of
the customer without increasing the EMI by assigning securities like National Savings
Certificate (NSC), LIC policies etc to HDFC. The present value of the maturity amount of
assigned securities is combined with the loan amount to arrive at the enhanced loan
eligibility. Under this facility, the EMI is calculated on the net loan amount (i.e. total loan
This product offers a customized solution to suit the needs of customers whose repayment
capacity is likely to alter during the term of the loan. The loan is structured in such a way
that the EMI is higher during the initial years and subsequently decreases in the latter part
Customer has a choice to pay some part of loan under fixed rate option and rest of
HDFC also provide the facility to increase the EMI amount to accelerate the repayment of
the loan.
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HDFC Home Loans
Be it land for a dream house, or just an investment for the future, HDFC Land Purchase
Loan is a convenient loan facility to purchase land. HDFC finances up to 70% of the cost
of the land (Conditions Apply). Repayment of the loan can be done over a maximum
period of 10 years.
HIL facilitates internal and external repairs and other structural improvements like
painting, waterproofing, plumbing and electric works, tiling and flooring, grills and
aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for
existing customers.
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HDFC Home Loans
• Special rates for HDFC customers (past and present) on all new loans.
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HDFC Home Loans
HOME LOAN:
We have over 200 offices with flexible timings keeping in mind your work timings. The
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HDFC Home Loans
4. Apply online.
• Duly completed application form along with the photograph and signature of all
applicants.
completed) of all the applicants for the last six months of both the operating and
• Proof of the age and residence. Documents have to be submitted for the same are
property papers.
• Agreement for sale deed detailed cost estimate from architect for the property to
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HDFC Home Loans
• If a customer have been in his present employment / business for less than a year
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HDFC Home Loans
FINANCIAL DOCUMENTS:
• Latest salary slip / certificate showing all deductions, retirement age and loan
details, if any.
• Employers profile.
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HDFC Home Loans
• Balance sheet, profit and loss account of the business profession as well as copies
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HDFC Home Loans
• Business profile.
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HDFC Home Loans
There is eligibility for certain tax benefits on principal and interest components of a
housing loan under the Income Tax Act, 1961. Moreover, you can get added tax benefits
under Sec 24b on repayment of principal amount. Moreover, you can get added tax
benefits under Sec 80 C on repayment of principal amount up to Rs. 1, 00,000 p.a. that
can further reduce your tax liability by about Rs. 30,000 p.a.
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HDFC Home Loans
Home loans interest rate in India is usually calculated either on monthly reducing or
yearly reducing balance. In the Monthly reducing system, the principal on which you pay
interest reduces every month as you pay your EMI. While in the Annual Reducing system
the principal is reduced at the end of the year, thus continuing to pay interest on a certain
portion of the principal which you have actually paid back to the lender thus making EMI
for the monthly reducing system effectively lesser than the second system of calculating
Pre EMI is the amount of loan paid in simple interest as agreed upon with the HFC for a
property that's yet under construction. The HFC makes the disbursement in parts as per
the stage of construction of your property. Once the property is ready for possession and
the possession letter is produced to the HFC, the final disbursement is made. You start
paying your EMI from the month following which the full disbursement is made.
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HDFC Home Loans
An EMI refers to the fixed sum of money that you will be paying to the housing finance
company every month against a loan amount borrowed for a fixed period of time. An EMI
has two components, the principal component and the interest component. . The amount
of the EMI depends on the quantum of loan, interest rate applicable and the term of the
loan. The loan carrying the lower EMI for the same tenure is the cheaper option.
• Maximum 3 Disbursements.
(In the case of builders the payment is depend on progress of work not in period of time)
A customer can repay the loan over a maximum period of 20 years. Repayment will not
ordinarily extend beyond his age of retirement or on his reaching 60 years of age, which
ever is earlier. However, HDFC will endeavor to determine the repayment period to suit a
customer’s convenience.
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HDFC Home Loans
• HDFC does not have any DSC. But it has many direct selling teams which provide
enough business.
• The service of HDFC is very fast. They suits that they can give first disbursement
within 36 hours.
Yes, HDFC help to customers to select accommodation of their choice in selected cities in
India. And help to contact with various contractor / property service groups.
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HDFC Home Loans
Under the monthly rest opinion, interest is calculated on monthly basis and under the
In the case of builder the agreement of sale between builder and customer must be
registered within 4 months, then agreement will be valid and loan will be disbursed.
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HDFC Home Loans
COMPARISION OF
DIFFERENT FINANCIAL
INSTITUTIONS
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HDFC Home Loans
HDFC:
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HDFC Home Loans
ICICI:
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HDFC Home Loans
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HDFC Home Loans
Corporation Bank:
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HDFC Home Loans
ANALYSIS
The analysis has shown that HDFC’s brand name has helped it fetch many home loans
customers. Its motto has been mass banking and so the customers reach the bank for its
brand equity and trust. The bank has shown its performance in recent past years.
The growth in this particular segment can be seen from above diagram. The comparison
has been made on the basis of institutions providing home loans. Banks form quite a good
The comparison between various banks was made on the basis of maximum loan amount
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HDFC Home Loans
M a x im u m L o a n A m o u n t
3
Amount (in Rs.
2
crores)
1 M a x im u m A m o u n t
0
ICICI
HDFC
Bank of
Union
ion bank
Corporat
India
B anks
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HDFC Home Loans
HDFC has no maximum amount fixed for home loan in comparison to other banks where
ICICI on the other hand, is providing maximum amount up to Rs. 2 crores. For HDFC it
depends on the creditworthiness of the customer which plays an important role in deciding
In te r e s t R a te s
15
Interest Rates (in
10 S e rie s 1
%)
5 S e rie s 2
0
HDFC IC IC I U n io n b a nCk o rp o ra t io n
o f In d ia B ank
Ba n ks
The interest rtes are also comparable between these banks. They all have got two different
types of interest rates – Fixed and Floating Interest Rates. The interest rates are moving
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HDFC Home Loans
not much far off from each other. The interest rate is most important factor for a customer
P ro c e ss in g ch a r g e s
6
5
Percentage
4
3 P ro c e s s in g c h a rg e s
2
1
0
ICICI
HDFC
Union Bank
Corporation
of India
bank
Banks
Also the processing charges have to be low for an individual to get a home loan. The
processing charges for home loans in HDFC are quite low as compared to that of
Corporation Bank. For an individual to be able to fetch a good home loan, the processing
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HDFC Home Loans
R e p a ym e n t P e rio d
30
25
20
Years
15 R e p a ym e n t P e rio d
10
5
0
ICICI
HDFC
Union Bank
Corporation
of India
Bank
B an ks
Repayment period at HDFC is quite long which makes an individual relaxed for a long
time and privilege to pay loan amount in instalments over the years. As compared to
Corporation Bank its low but an appropriate time as per the norms set by RBI. It is
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HDFC Home Loans
M a rg in o f L a n d
100
Percentage
50
0
HDFC IC IC I U n io n B a n k Co fo rp o ra t io n
In d ia bank
Ba nks
M a rg in o f L a n d
Margin of land & construction is quite low at HDFC as compared to other banks in this
segment.
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HDFC Home Loans
Margin of Construction
90
80
70
Percentage
60
50
Series1
40
30
20
10
0
HDFC ICICI Union Bank Corporation
of India Bank
Banks
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HDFC Home Loans
2.5
2
Percentage
Bank of
Union
India
B anks
Prepayment charges are there at HDFC. However, there are no prepayment charges in
Union Bank of India and Corporation Bank. And repayment charges stand at same level
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HDFC Home Loans
6
5
4
Disburse of
Days
3
2 Installm ent and Tim e
1
0
ICICI
HDFC
Bank of
Corporation
Union
India
bank
Ba nks
Bank where only disbursement is spread over 1 day. This happens to be an advantage of
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HDFC Home Loans
A survey was conducted in which customers were questioned regarding services of these
for banks and the attracting features of the bank driving the customers. The customers are
integral part of any bank or any organization because without customers an organization
would not work and hence rise the question to survey the customers for satisfaction and
any suggestions they would like to recommend to the bank/organization. Any research is
incomplete without customers’ survey. Following are the findings based on this survey.
yes
no
It was found that most of the customers brought in by me had not applied for the loan
before in any other bank and had no idea of cheap services being provided at HDFC.
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HDFC Home Loans
Larger
Amount
(as there is no
fixed limit)
Spread of
repayments
Benefits of
over large Low Rate of
Home Loan at
period, ie, 20 Interest
HDFC
years
Higher grace
period (5
days)
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HDFC Home Loans
network
brand
name
service
The survey also made it clear that most of the customers get attracted towards the bank for
its brand name, second stands its service and then network. Most of the people think that
any bank having a good brand name would not compromise on its services as it will affect
its goodwill and perspective customers. Hence most of the customers demanded loan from
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HDFC Home Loans
Nature of Staff
It has also been found that the staffs at HDFC is quite well versed in its work of attracting
customers through behaviour. Most of the customers find that the staff is quite friendly
while others find that they are neither friendly nor unfriendly and conduct their work
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HDFC Home Loans
Satisfaction Level
no
yes
The analysis has also proved that most of the customers are satisfied with the services
being provided by the bank, as there is still awareness needed to be spread among
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HDFC Home Loans
4.5
4
3.5
3
Ranks
2.5
2
1.5
1
0.5
0
HDFC Corporation Bank ICICI Union Bank of India
Banks
The customers of different income groups have ranked their opinion regarding these four
banks. 4 being the highest and 1 being the lowest, on the basis of their convenience,
services of the bank, interest rates and amount. HDFC has received the top priority by
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HDFC Home Loans
SWOT
ANALYSIS
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HDFC Home Loans
SWOT ANALYSIS
Strength:
• With over 200 offices- HDFC is able to provide home loans over 2400 locations
in India.
differentiated product line. HDFC not only offers housing loans but also offer loans
that meet all housing needs of an individual. Such as Home improvement loan, Home
Weakness:
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HDFC Home Loans
Opportunity:
Threats:
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HDFC Home Loans
RECOMMENDATIONS
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HDFC Home Loans
RECOMMENDATIONS:
1. HDFC do not have any Direct selling centres as compared to other private banks, which
2. HDFC should also try to increase their Direct selling teams and provide them proper
training, because sometimes executives could not reach when customer required and feel
3. HDFC should also provide after retirement loan facility. Because it will give strong
4. HDFC should also organize some kind of Bonanza like Loan Mela, where customers
can get information regarding every product at single window. This kind of promotional
5. As it is seen that there are no deviation in HDFC we recommend that there should be
some flexibility in maximum loan amount and in other formalities according to case.
6. Number of home loan branches in Utter Pradesh should be increased for convenience of
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HDFC Home Loans
BIBLIOGRAPHY
M
M
A
N
A BIBILIOGRAPHY
GE
R
Information about various product and service obtained from HDFC home loan
department.
Primary information gathered through related Banks and their franchisees, and some other
information is:
• www.hdfc.com
• www.icici.com
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HDFC Home Loans
• www.google.com
ANNEXURE
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HDFC Home Loans
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HDFC Home Loans
QUESTIONNAIRE
Objective:
Set of Questions:
a) Yes
b) No
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HDFC Home Loans
3. What factors you considered while going in for home loan decision?
a) Brand Name
b) Service
c) Network
4. Which one of these gives you the loan at minimum rate of interest?
HDFC
ICICI
UNION BANK OF
INDIA
CORPORATION
BANK
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HDFC Home Loans
a) Very friendly
b) Somewhat friendly
d) Somewhat unfriendly
e) Very unfriendly
a) Yes
b) No
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HDFC Home Loans
7. Rate your satisfaction level on the following specify parameters regarding the service
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HDFC Home Loans
STUDENT DECLARATION
101