Hdfc Car Loan

8/4/2019 Hdfc Car Loan

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SUMMER INTERNSHIP REPORT

ON

HDFC CAR LOAN PROCESS AND FINANCIAL ANALYSIS

Submitted ToProf. Rajesh Mehrotra

Director

School of Business and Management

Submitted ByChetan kumar nagar

PGDM-3


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RESEARCHMETHODOLOGY

Primary data: All the people from differentprofession were personally visited and interviewed.They were the main source of data. The methods ofthe collection of primary data was direct personalinterview

Secondary data: It was collected on the basic oforganisation files, official records, newspapers,magazine, management books, preservedinformation in the companys database and thewebsite of the company.


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OBJECTIVEOFSTUDY

To study the various complexities involved in theloan process of HDFC.

To know the various loan provided by the HDFCbank.

To know the various requirements fulfilled bycustomers to get from HDFC bank.

To study the various facilities provided by HDFCbank to customers for taking loans.

Recommend the valuable suggestion which mayincrease the faith of new customers.


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BANKING IN INDIA

Banking in India originated in the last decades ofthe 18th century.

The first banks were THE GENERAL BANK OF

INDIA, which is now defunct.

The oldest bank in existence in India is the STATEBANK OF INDIA, which originated in the BANK OF

CALCUTTA in June 1806.

The first fully Indian owned bank was theALLAHABAD BANK, established in 1865.


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MAJORPLAYERSIN INDIA

State Bank of India HDFC Bank

ICICI Bank

HSBC Bank

IDBI BANK

City Bank

Axis Bank

Punjab National Bank ING Vysya Bank

Union Bank of India


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COMPANYPROFILE

Housing Development Finance Corporation

Funded in 1977 by Hasmukh bhai Parakh

HDFC Bank was incorporated in August 1994

Among the first in new generation commercialbanks

Registered office in Mumbai, India

Promoted by HDFC, the parent company

IPO in India in 1995 Listed in NSE, BSE, NYSE(ADR)


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CONTED

Type public

Founded 1994

Headquarters HDFC Bank Ltd.,Mumbai, India

Industry Banking, InsuranceCapital Markets andallied industries

Products Loans, Credit Cards,

Savings, InvestmentVehicles, Insurance etc.

Website www.hdfcbank.com


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NETWORK

761 branches

1977 ATMs in the country

327 cities in India

16 branches in Middle east 6 in Africa

Representative offices in Hong Kong, NewYork,London & Singapore.


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MISSION

World Class Indian Bank

Benchmarking against international standards.

Best Practices in terms of product offerings,

technology, service levels, risk management andaudit & compliance.

To build sound customer franchises across distinctbusinesses.


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PRODUCT & SERVICES

Travelers Cheques

Credit Card

Home Loan

Personal Loan

Auto Loan Foreign Currency Cash

Foreign Currency Demand Drafts

Cheque Deposits

Remittances

Trade services

Mutual funds

Insurance


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ACHIEVEMENTS

HDFC Bank merged with TIMES BANK in 2000. HDFC Bank wins the Asian Banker Best Retail

Bank in India Award 2008 for outstandingperformance.

HDFC Bank chosen as one of Asia Pacifics best50companies by Forbes magazine.

Best Bank in the Private Sector 2008.

HDFC Bank ties up with Qatar National Bank.

HDFC Bank merged with CENTURION BANK OFPUNJAB in 2007


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LOANS PROVIDED BY HDFC

Home Loans

Personal loan

Car loan

Two wheeler loan Commercial Vehicle loan

Loan against securities

Farm Equity Loans

Construction Equipment loan

Office Equipment loan

Medical Equipment loan


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PRODUCT OFFERINGS

New Car loans:

Funding of up to 100% of ex-showroom value

Tenors from 12-84 months

Competitive pricing

Insurance of car facilitated by the bank

Used car Loans:

Funding of up to 85% of valuation of car

Tenors from 12-60 months

Competitive pricing

Insurance of car facilitated by the bank

Car N Cash:

Refinance on your existing car


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SALARIED INDIVIDUALS

Eligibility Criteria

Minimum age of Applicant: 21 years

Maximum age of applicant at loan maturity: 58 years.

Minimum employment: 1 year in current employment andminimum 2 years employment.

Minimum annual Income: Rs 100000 net annual income.

Telephone: Must at residence.

Documents required:

Proof of Identity: Passport copy, PAN Card, Voters ID, Driving

License (Laminated Recent, legible). Income Proof: Latest salary slip with form 16

Address Proof: Ration card/Driving license/Voterscard/Passport copy/Telephone bill copy/Electricity bill/Lifeinsurance policy PAN Card.

Bank Statement: Not mandatory

ELIGIBILITY & DOCUMENTATION :


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SELF EMPLOYED

Eligibility Criteria:

Minimum age of Applicant: 21 years.

Maximum age of Applicant at loan maturity: 65 years.

Minimum Annual Income: Net profit Rs. 60000 p.a. for standard carsand Rs.100000 p.a. for mid-sized and premium cars.

Telephone: Must at residence.

Documents required:

Proof of Identity: Passport copy, PAN card, Voters ID, Driving License(Laminated Recent, legible).

Income Proof: Latest ITR

Address Proof: Ration card/Driving license/Voters card/Passport

copy/Telephone bill copy/Electricity bill/Life insurance policy PAN Card.

Bank Statement: Waived for small cars for mid-sized and premium carsif income greater then Rs. 1.5 lacs then bank statement requirement canbe waived.

P L


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PARTNERSHIP FIRMS, PRIVATE LIMITEDCOMPANYAND PUBLIC LIMITED COMPANY

Eligibility criteria:

Minimum Income: Net profit Rs. 60000 p.a. for standard carsand Rs. 100000 p.a. for mid-sized and premium cars.

Minimum turnover: Turnover Rs. 4.5 lacs.

Telephone: One phone at least at business and at residence ofthe loan executing partner.

Documents required:

Proof of Identity: NA

Income Proof: Audited balance sheet, Profit & Loss Account forlatest two years and the latest 2 years IT returns of company.

Address proof: Telephone Bill/Electricity Bill/Shop &Establishment Act certificate/ SS registered certificate/Sales

Tax certificate. Bank Statement: (except private and public ltd. companys)

Waived for small cars, for mid-sized and premium cars ifincome is greater thenRs. 1.5 lacs then bank statementrequirement can be waived.


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NRI LOANS:

NRIs can avail of new car loans from HDFC Bank for theuse of the vehicles by their relatives in India. Additionaldocuments required are as follows :

Contract copy and salary slip of NRI.

Endorsement on passport for last 3 years.

Proof of ownership of property.

Post-dated cheques must be from the resident account ofthe borrower.

Approval Plan If you have an HDFC Bank Preferred Account or a

Corporate Salary Account with HDFC Bank for morethan six months, you can get fast approvals on yourloans with minimal documentation.


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ELIGIBILITY & DOCUMENTATION:

Best Guide to

car segmentsand Funding

Segment Ex-Showroom Value

(In lac) Funding %Examples

A: Mini


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FEES & CHARGESFOR NEW CAR LOANSDescription of charges New Car LoansFC Charges 6 % of POS for preclosures within 1 year from 1st EMI

5% of POS for preclosures within 13-24 months from 1st EMI

3% of POS for preclosures post 24 months from 1st EMINo foreclosure allowed within 6 months from date of availing the

car loan

Stamp Duty At actualsLate Payment Penalty 2% per monthProcessing fees Upto 2.5 Lacs : Rs.2150/-

2.51 to 4 lacs : Rs.3150/-> 4 Lacs :Rs. 3650/-

Cheque swapping charges Rs 500/-Loan cancellation / re-booking charges Rs 1000/-Duplicate Repayment Schedule

charges

Rs 500/-Legal, Repossession & Incidental

chargesAt actuals

Duplicate no due certificate / NOC Rs 500/-Transaction fees for SurakshaKavach Rs 500/- per caseLoan Reschedulement charges As applicable at the time of reschedulementSpecial NOC Rs. 500/- per request


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COMPANY FINANCIALANALYSIS


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COMPANY BALANCESHEET


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SHARE CAPITAL


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APPROVALS & DISBURSEMENTS(CUMULATIVE) INCRORES

0

50000

100000

150000

200000

250000

300000

350000

400000

2007 2008 2009 2010 2011

145764

188284

237450

298061

373246

119281

152156

191806

242219

302533

Ru

pees

Years

Approval

Disbursement

Interpretation: There is a increase in difference between loans approved ofdisbursed year by year.


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COMPANY PROFIT (INCORES)

1968

2737

3219

3916

4867

1570

1943

2285

2826

3535

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011

Rupees

Years

Profit Before Tax

Profit After Tax

Interpretation : The profits after tax of the company increased by 125% from 2007 to2011. and increase in profit before tax is 147% from 2007 to 2011. Differencebetween the percentage of income before tax and after tax is due to governmentregulations & policies.


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SWOT ANALYSIS

STRENGTHS

Support of various promoters High level of services Knowledge of Indian market Quality business High profile clients

WEAKNESS

Gaining attention towards theproposal becomes difficult

Not covering Rural areas

OPPORTUNITY

Can expand the portfolio Can make easier loan process

People are becoming more serviceoriented

Can Provide additional services

THREAT

From various competitors likeforeign banks and government

banks Delinquency control Future market trends


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SUGGESTIONS

Loans should be provided very easily.

There should be less formality for taking loan.

Terms and conditions should be easily

understandable. Loan should be provided as soon as possible.

Interest rate should be less as compare to otherbanks.

The customers should be comfortable while takingloans as compared other banks.


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ANYQUERIES