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INTRODUCTION
1
1.1 INTRODUCTION TO HOME LOANS
Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries
and above all gathering funds little by little to afford one’s dream.
Home is one of the things that everyone one wants to own. Home is a shelter to
person where he rests and feel comfortable. Many banks providing home loans whether
commercial banks or financial institutions to the people who want to have a home.
HDFC-(Housing Development And Finance Corporation) Home Loan, India have
been serving the people for around three decades and providing various housing loan
according to their varied needs at attractive & reasonable interest rates. Owing to their
wide network of financing, HDFC Housing Loans provides services at your doorstep and
helps you find a home as per your requirements.
Many banks are providing home loans at cheapest rate to attract consumers
towards them. The more customer friendly attitude of these banks, currently offer to
consumers cheapest loan over homes.
In view of acute housing shortage in the country, and keeping in mind the social –
economic role of commercial banks in the present times, the RBI advised banks to
encourage the flow of redit for housing finance.
With the RBI reducing bank rate, the home loan market rates nose-diving by 50
basis points. The HDFC Bank and Standard chartered bank has become the first player in
this sector to announce a housing loan for a 20 years period. No doubt it will enhance the
end cost people to plan their house over longer duration now; it has been made easy for a
person to buy that dream house which he dreamt of long ago.
HDFC also provides with Home Improvement Loan for 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).
Current status is that HDFC reduced home loan rates by 50 basis points for all its
existing floating rate customers.
2
1.2 OBJECTIVES OF STUDY
There is no strongest foundation for your dream home, than a cheap loan. Home loans have
become that stronger foundations for people who want to own a home. The main
objectives of the study are as follows :-
The main objective of this study is to know the Customers perceptions about home
loans of HDFC(housing development finance corporation)LTD
To know the awareness of customers about home loan products and services.
To make comparative study of Disbursement of home loans by a few
Commercial banks.
To study the satisfaction level of customers about home loans.
To study the problems faced by customers in obtaining the home loans.
To learn about various aspect of hdfc home loan ltd. To learn about various aspect of hdfc home loan ltd.
1.3 PURPOSE OF THE STUDY
3
The main purpose of this study is to attain the knowledge of the processing system of home
loans. Which is as follows :-
To know the ideas of customers about home loan products and services.
To study the satisfaction level of customers about home loans.
To study the problems faced by customers in obtaining the home loans.
To learn about various aspect of HDFC home loan ltd. To learn about various aspect of HDFC home loan ltd.
1.4 SCOPE OF STUDY
The Indian housing finance industry has grown by leaps and bound in few years. total
home loans disbursements by banks has risen which witnesses phenomenal growth from
last 5 years. There are greater number of borrowers of home loans. so by this study we can
find out satisfaction level of customers and problems faced by them in obtaining home.
4
RESEARCH METHODOLOGY OF THE STUDY
5
RESEARCH METHODOLOGY:-
Research methodology is a way to systematically show the research problem. It may
be understood as a science of studying how research is done scientifically. It is necessary
for the researcher to know not only the research methods but also the methodology.
This Section includes the methodology which includes. The research design, objectives of
study, scope of study along with research methodology and limitations of study etc.
To know the Customers perceptions about home loans of HDFC housing development
finance corporation LTD.
To study the satisfaction level of customers about home loans.
To study the problems faced by customers in obtaining the home loans.
To make comparative study of disbursement of home loans by commercial banks, the
study shall be conducted in the manner enumerated below-
2.1- RESEARCH DESIGN:-
This project is based on exploratory study as well descriptive study. It was an
exploratory study when the customer satisfaction level was studied to suggest new
methods to improve the services of HDFC LTD in providing home loans and it was
descriptive study when detailed study was made for comparison of disbursement of home
loans by commercial banks.
2.2 – SOURCES OF DATA :-
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To fulfill the information need of the study. The data is collected from primary as well
as secondary sources-
A - PRIMARY SOURCE:-
In survey approach we had selected a questionnaire method for taking a customer view
because it is feasible from the point of view of our subject & survey purpose. We conducted
200 sample of survey in our project to judge the satisfaction level of customers which took
home loans.
• Sample size;-
For the questionnaire I have taken the sample size of 200 customers of HDFC LTD.
B – SECONDARY SOURCE:-
It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, news papers, magazines, management books, preserved
information in the company’s database and website of the company.
2.3DATA COLLECTION INSTRUMENT DEVELOPMENT :-
The mode of collection of data will be based on Survey Method and Field Activity.
Primary data collection will base on personal interview. I have prepared the questionnaire
according to the necessity of the data to be collected.
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2.4 LIMITATIONS OF THE STUDY:-
This study also includes some limitations which have been discussed as follows:
i) The sample size of 100 customers and 4 banks might prove a limitation because of
difficulty in generalization of results.
ii) To collect the data from various banks was quite difficult due to non- cooperation of
some banks. This proved to be major limitation of the study.
iii) To access such a large number of customers was difficult because of non-cooperative
attitude of respondents.
iv) Lack of data was also the other limitation of the study as some of banks do not have
proper data on topic.
v) There was limitation of time to conduct such a big survey in limited available time.
vi) Ignorance and reluctant attitude of customers was also a major limitation in this study.
Thus above all were the limitations in this research study. The maximum efforts
were made to overcome these limitations in the study.
2.5 THE HISTORY OF INDIAN HOME LOANS:-
8
Home loans in India have made people Buy Property in India in spite of the
skyrocketing prices. Today, we find considerable Real Estate Investment in India, either in
the field of Residential Property in India or Commercial Properties in India. Home Loans in
India are disbursed by many Banks as Loan Banking is on of the most important function of
the Financial Services in India. Property Dealers and Real Estate Consultants in India
usually recommend that we undertake appropriate Home Loan or Mortgage Loan
counseling so that we can Buy Apartment in India at an affordable Mortgage
Rate.Purchasing the home of your dreams is not an easy task. Especially when you plan to
buy a home on loan. Home loan means that you buy a house on installments. In simpler
terms when you want to own a home and can’t afford to pay the amount in lump sum, you
can pay it in monthly installments with an interest rate.
The interest rates of home loans are expected to go down even further according to
analysts who foresee a cut down in the rates by the RBI in the wake of the decision taken by
US Federal Reserve to cut its rates by a significant margin.
There are number of companies offer cheap home loans at a low interest rate. You can
avail loan against existing house for renovation or expansion etc. There are many
nationalized banks that offer finance for affordable housing. India Housing has put together
a comprehensive data to provide you with the cheapest Home Loans available in the
market. We have listed all the important housing finance institutes and some of the top
home finance banks providing lowest interest rates.
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 a boom in the Number of home loans mortgage
brokers in India.
9
The main reason for this boom in home loan market is the change in government
policies. It is our government’s motivation that the home loan interest rates in India have
fallen considerably. Lot many banks are offering home loans and this is available at low
EMIs (Equated monthly Installments). High EMIs are now a thing of past. Today lending
rate is in the range of 7.5 to 15 %.
Again, there are different types of home loans available today. The interest rate
available is also of two different 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 loan. In the last few years the floating interest rate has been a favorite among
most of the people taking home loans.
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 build a good building is very important.
Taking home loans these days has become simpler. With the RBI regularly bring
down interest rates; taking home loans have become extremely easy. Housing loans which
were 16.5% to 18% a few years ago fell by 11.5% to 13%. With interest rates going down,
people increasingly number apply to take these loans. Some of the leading banks offering
home loans in India, including ICICI Bank, IDBI Bank, HDFC Bank , Bank of Baroda, SBI,
Standard Chartered Bank and Axis Bank .
2.6 Home Loan Procedure in India :-
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Submission of Application Form: - After choosing a particular home loan, the customer
submits the application form to the housing finance company (HFC) along with other
relevant documents as required by the HFC. They comprise documents to establish income,
age, residence, employment, investments, etc. The customer also needs to hand over a
cheque for payment of an up front (non -refundable) processing fee of about 0.5-1% of the
loan amount to the HFC.
Validation of the Information: - In the next stage, HFCs validate the information provided
by the customer on the application form. They usually conduct checks on the residential
address of the customer, the place of employment of the customer, and credentials of the
employer. Some HFCs may insist on a personal interview with the customer and perform a
reference check on the references provided by the customer on the application form.
Issue of Sanction Letter :- After due appraisal of customer profile, a sanction letter is
issued which contains details such as loan amount, rate of interest, annual / monthly
reducing balance, tenor of the loan, mode of repayment and general terms and conditions
of the loan. This is the actually the approval of the money lending procedure by the
company. However, the money is sanctioned only after the documents and the property on
behalf of which the loan is being granted is thoroughly verified.
Submission of Documents: - Once the sanction letter is passed, the customer is required
to leave the entire set of original documents pertaining to the property being purchased
with the HFC as security for the loan amount sanctioned. These documents remain in the
custody of the HFC till the time the loan is fully repaid. Once the documents are handed
over to the HFC, they send all the documents for a thorough legal scrutiny.
Validation of Property: - Prior to disbursement, the HFC also conducts a site visit to the
customer's property to ensure that all construction norms have been adhered to properly.
Once the HFC is satisfied that the property is legally and technically clear, they disburse the
loan amount. The disbursement from the HFI is on the basis of the stage of construction of
the property.
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Payment Procedure: - Once all the above mentioned process, the borrower is entitled to
take the money from the lender party. Until such time that the entire sanctioned amount is
not drawn, the customer is supposed to pay a simple interest on the Actual Amount drawn
(without any principal repayments). The EMI payments commences only after the entire
sanctioned loan amount is drawn.
2.7 INTEREST RATES PROVIDED BY VARIOUS BANKS
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Finance InstitutionLoan Period
(in years)Fixed
EMI / Lakh(INR)
FloatingEMI / Lakh
(INR)
Bank of Baroda
Up to 5 9.00 2076 8.00 2028
6 to 10 9.25 1230 8.25 122711 to 15 9.50 1044 8.25 97016 to 20 9.50 932 8.50 868
State Bank Of India
Up to 5 9.50 2100 8.75 2064
6 to 10 9.75 1300 9.25 128011 to 15 - - 9.25 102916 to 20 - - 9.75 949
HDFC
Up to 5 11 2175 9.50 2101
6 to 10 11 1375 9.50 129411 to 15 11 1137 9.50 104516 to 20 11 1033 9.50 933
ICICI Bank
Up to 5 10.75 2162 9.50 2101
6 to 10 10.75 1364 9.50 129411 to 15 10.75 721 9.50 104516 to 20 10.75 1016 9.50 933
LIC Housing Finance
Up to 5 10.50 2149 9.50 2100
6 to 10 11 1373 9.50 129411 to 15 11 1137 9.50 104416 to 20 11 1032 9.50 932
PNB Housing Finance
Up to 5 9.00 2076 10.50 2150
6 to 10 9.00 1267 10.50 135011 to 15 9.25 1030 10.50 110616 to 20 9.50 933 10.50 999
The above table illustrates the comparison between the interest rates from various
Housing Finance Companies and banks. It can be seen that if one wishes to go for floating
13
loans, the bank which gives the best deal as far as the interest rate is concerned is HDFC
followed by PNB Housing Finance with the lower rates.
2.8Recent trends of home loan in India:-
In order to understand the recent trends we need to know or understand various
factors. These factors play vital role in Indian home loan market. These include interest
rate on which banks provide home loan, tax rebate on home loan and its impact. Apart from
this to understand the recent trend we need to compare the trends of home loan of
different years. Here we have compared the interest and other market trends of year 2009
with 2007-08. This kind of comparison gives the result which helps us to understand the
trends of market of any industry. Apart from the impact of present and past economic ups
and down also affect the trends. Today the US slowdown is the major issue which has
affected almost all the industry. So we have also discussed this issue in terms to define
trend of home loan market in India.
HDFC: yielding Ground: -
Loan growth may slow down in 2009-10 as the company loses some market share.
14
GRAPH
Competition is not new to HDFC, after all ICICI Bank was a tough competitor when it
went on a customer acquisition spree some years back. This time around, although ICICI
may not be in a position to give HDFC a run for its money, public sector banks, especially
State Bank of India (SBI) could.
The difference between four years ago and now is that money today is not yet cheap
and certainly not as inexpensive as it was back in 2004 and 2005. Of course with bank
loans to HDFC now treated as priority lending, the cost of funds for HDFC should come
down. But should long-term rates go up, HDFC will feel the pinch.
That’s why the market sat up and took note when SBI kicked off an 8 per cent in-
the- first -year product believing HDFC could lose some market share. In the recent rally,
the stock which had plunged to a two year low, has gained 31 per cent to the Sensex’s 23
per cent. The good news is that transactions could start picking up in the second half of
2009 now that property prices have started trending down as have interest rates.
But although the home loan major believes it can manage a growth of 20 per cent in
2009-10, analysts are not so sure. CLSA points out that HDFC’s loan growth (pre-
15
securitisation) would be around 15-17 per cent. One reason for this is that HDFC Bank may
now hold back a higher proportion of loans that it originates; the bank currently sources
just over a fourth of HDFC’s loans.
As a result HDFC’s operating income may increase by about 15 per cent in 2009-10
while its net profits should grow by about 10-12 per cent. HDFC has always scored when it
comes to keeping bad loans in check, which is why a few delays or even defaults will not
hurt the balance sheet. At Rs 1,653,the stock trades at around 2.8 times the estimated
adjusted book value for 2009-10.
2.9Types of home loans: -
Housing loans offered by banks are of different types:-
Home Purchase Loans
Home Construction Loans
Home Improvement Loans
Home Extension Loans
Home Conversion Loans
Land Purchase Loans
Stamp Duty Loans
Bridge Loans
Balance Transfer Loans
Refinance Loans
Loans to NRIs
Home purchase loans:-
This is the basic home loan for the purchase of a new home. If you want to buy a flat
in some society or some already built house, banks and HFCs sanction you home purchase
loans for this process.
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Home construction loans:-
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
included in the total cost of property while calculating eligibility.
Home improvement loans:-
These loans are given for implementing repair works and renovations in a home
that has already been purchased, for external works like structural repairs, waterproofing
or internal work like tiling and flooring, plumbing, electrical work, painting, etc. One can
avail of such a loan facility of a home improvement loan, after obtaining the requisite
approvals from the relevant building authority. the following are coming under the
home improvement loans:
External repairs
Tiling and flooring
Internal and external painting
Plumbing and electrical work
Waterproofing and roofing
Grills and aluminum windows
Waterproofing on terrace
Construction of underground/overhead water tank
Paving of compound wall (with stone/tile/etc.)
Borewell.
Home extension loans:-
An extension loan is one which helps you to meet the expenses of any alteration to
the existing building like extension/ modification of an existing home; for example addition
17
of an extra room etc. One can avail of such a loan facility of a home extension loan, after
obtaining the requisite approvals from the relevant municipal corporation.
Home conversion loans:-
This is available for those who have financed the present home with a home loan
and wish to purchase and move to another home for which some extra funds are required.
Through a home conversion loan, the existing loan is transferred to the new home
including the extra amount required, eliminating the need for pre-payment of the previous
loan.
Land purchase loans:-
This loan is available for purchase of land for both home construction or investment
purposes.
Stamp duty loans:-
This loan is sanctioned to pay the stamp duty amount that needs to be paid on the
purchase of property.
Bridge loans:-
Bridge Loans are designed for people who wish to sell the existing home and
purchase another. The bridge loan helps finance the new home, until a buyer is found for
the old home.
Balance- transfer loans:-
Balance Transfer is the transfer of the balance of an existing home loan that you
availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the
current ROI a lower rate of interest.
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Refinance loans:-
Refinance loans are taken in case when a loan for your house from a HFI at a
particular ROI you have taken drops over the years and you stand to lose. In such cases you
may opt to swap your loan. This could be done from either the same HFI or another HFI at
the current rates of interest, which is lower.
NRI home loans:-
This is tailored for the requirements of Non-Resident Indians who wish to build or
buy a home or property in India. The HFCs offer attractive housing finance plans for NRI
investors with suitable repayment options.
On would be entitled for home loans in the range of Rs 5 lakh to a maximum of Rs 1 crore,
based on the repayment capacity, previous credit history and the cost of the property. The
bank may provide a maximum of 85% of the cost of the property or the cost of construction
as applicable and 75% of the cost of land in case of purchase of land. The repayment
capacity is calculated taking into account factors such as:
Age
Income/Salary
Qualifications
Dependant/(s)
Assets/Liabilities
Credit History
Stability / continuity of your employment/business
Income of co-applicant/(s)
Taking home loans these days has become simpler. With the RBI regularly bring
down interest rates; taking home loans have become extremely easy. Housing loans which
were 16.5% to 18% a few years ago fell by 11.5% to 13%. With interest rates going down,
people increasingly number apply to take these loans. Some of the leading banks offering
home loans in India, including ICICI Bank, IDBI Bank, HDFC Bank State Bank, Bank of
Baroda, Kotak Bank, SBI, Standard Chartered Bank and Axis Bank.
19
2.10HDFC Home Loan:-
Eligibility; - HDFC home loans are available for:
Purchase of flat, row house, bungalow from developers
Purchase of existing freehold properties
Purchase of properties in an existing or proposed co-operative housing society or
apartment owner's association
Purchase of first Power of Attorney purchases in Delhi for DDA flats allotted before
1992.
Construction of own house
HDFC home loans can be applied for either individually or jointly. Proposed owners of the
property will have to be co-applicants. However, the co-applicants need not be co-owners.
Maximum tenure is 20 years subject to retirement age.
Loan Amount: - 85% of the cost of the property (including the cost of the land) and based
on the repayment capacity of the customer.
Rate of Interest :- The current applicable fixed rate of interest in respect of the total loan
approved is as follows:
For loans up to Rs.2, 00,000:-
Term of Loan Rate Per Annum
20
(No. of Years) (%p.a)
Up to 5
6 - 10
11 - 15
10.00
10.75
11.00
For loans greater than Rs.2, 00,000
Term of Loan
(No. of Years)
Rate Per Annum
(%p.a)
5
10
15
10.00
11.00
11.25
All loans on annual rest basis. You repay the loan in Equated Monthly instalments (EMIs)
comprising principal and inertest.EMI per Rs 1, 00,000 (for loan up to Rs.2, 00,000)
Term of Loan
(No. of Years)Rupees
5
10
15
2199
1401
1159
EMI per Rs.1, 00,000 (for loan greater than Rs.2, 00,000)
Term of Loan
(No. of Years)Rupees
5 2199
21
10
15
1416
1175
Pending final disbursement, you pay interest on the portion of the loan disbursed. This
interest is called pre-EMI interest.An early redemption charge of 2% of the amount being
prepaid is payable on repayment of a loan ahead of schedule.
Repayment Period: - Repayment Options –
Step Up Repayment Facility; - helps younger borrowers to take a much bigger loan today
based on an increase in their future income.
Flexible Loan installments Plan: - 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 instalment reduces upon retirement of the earning parent.
Tranche Based EMI - 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, HDFC has introduced a special facility of
Tranche Based EMI. Customers can fix the installments 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 idea is customer benefits by starting EMI and hence repays the
loan faster.
Accelerated Repayment Scheme provides borrower the opportunity to repay the loan
faster by increasing the EMI. Whenever the borrower gets an increment, increase in
disposable income or have lump sum funds for loan prepayment, they can benefit by saving
of interest because of faster loan repayment. Borrower can benefit by:
Increase in EMI means faster loan repayment
22
Saving of interest because of faster loan repayment
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...
Documents Required :-
Salaried
CustomersSelf Employed Professionals Self Employed Businessman
Application form
with photographApplication form with photograph
Application form with
photograph
Latest Salary-slip
Education Qualifications
Certificate and Proof of business
existence
Education Qualifications
Certificate and Proof of business
existence
Form 16Last 3 years Income Tax returns
(self and business)Business profile
Last 6 months bank
statements
Last 3 years Profit /Loss and
Balance Sheet
Last 3 years Income Tax returns
(self and business)
Last 3 years Profit /Loss and
Balance Sheet
Processing fee
cheque
Last 6 months bank statements
Processing fee cheque
Last 6 months bank statements
(self and business)
Processing fee cheque
The Credit Appraisal is an important step in sanctioning loan applications .Hence the Credit
Appraiser needs to have certain important documents to compute the credit worthiness of
the applicant .In the case of salaried person these include the following :-
1) SALARY SLIPS (3 MONTHS CURRENT) :- The salary slip is usually a printed sheet of
paper that contains 2 components
23
Income/Earnings collumn: - It contains an exhaustive list of the various components that
are added to the persons salary. They contain various components like Basic pay, HRA etc.
Deductions :- It contains an exhaustive list of various components that are deducted from
the persons Earnings. They contain various components like Income tax, Provident fund,
Employee Loans etc.
2) BANK STATEMENTS(6 MONTHS CURRENT) ;- The bank statement contains the
various transactions that the applicant performs in his bank account. It has 3 components
Date
Descriptions ;- It contains the brief and standardized description of the activity or
the account related to the transaction .Eg. Clearing cheque 166129, Transfer
deposit.
Deposits: - It contains the amounts that were credited to the account
Withdrawal ;- It contains the amounts that were debited to the account. This is
carefully studied to find out about any regular withdrawals or a series of checks so
that any existing loans may be revealed and there can be a correct estimate of the
repayment capacity.
Balance :- It shows effect of transaction on the pre existing account balance
Special feature :- HDFC will not consider any loan s with out standing EMI of or
below 6 months.
3) FORM 16 :- It is form given by Employer which states the income earned from that
company during the full financial year ,and gives the details of Tax deducted at source.
4) COPY OF INCOME TAX RETURN(SARAL) :- The SARAL tax return form reveals the
structure of incomes and/or the various earnings of the tax returnee .It also shows the
various deductions that will not be included and it also contains the Rebates on which he
earns tax benefit.
24
5) RESIDENCE PROOF :- The residence proof includes the Electricity bill, Telephone bill,
Ration Card ,Passport.
6) PHOTO ID PROOF :- The photo proof includes the Pancard ,Voter ID card, Employee ID
card, Passport etc.
7) AGE PROOF: - The age proof includes the Pan card, Passport, Photo ID.
8) LOAN APPLICATION FORM DULY FILLED :- It can also be downloaded from HDFCs
user friendly web based portal.
9) CHARGES FOR PROCESSING FEES :- This is a standard and nominal fees to be paid at
the time of applying for loan
Fees structure. 0.5% of loan amount
+Service tax of 12%
(Less)Education Less of 3%
OR 5618/-
HDFC takes from applicant whichever is less. This is applicable time to time.
10) PHOTOCOPIES OF PROPERTY PAPERS.
NON RESIDENT INDIAN
SALARIED/EMPLOYED; - An NRI is a person with Indian citizenship but residing in
another country. An NRI can take a housing loan from HDFC. He is however not eligible for
a Top Up loans,Home Equity Loans,Non Residential Premises Loans .He is however eligible
for Home Improvement and Home Extension Loans from HDFC .
25
An NRI Loan is appraised on the Net Salary. This is the take home pay package obtained
after reducing the deductions from the earnings .As this salary is low it reduces their loan
eligibility .However the salary is converted into Indian Currency for computing credit
worthiness.The figure obtained is higher in Indian currency hence the loan eligibility
rises.Eg 5,487$ american dollars will mean 2,46,915 Rupees.
SELF EMPLOYED PROFESSIONALS :- An NRI applicant can also be a Doctor, Engineer
etc.In these cases HDFC will put them in the special category of Self Employed
Professionals.
Their credit appraisal is carried out as follows:-
Their latest available Profit and Loss A/c is reviewed by the credit appraiser. This account
has two sides a Profit side which reveals all earnings and gains .There is also a Loss side
which shows all taxes, liabilities and losses.
We refer to the Profit side a the Gross Receipts.These includes components revealing the
nature and amount of the Prime income and other earnings Eg Consultation fees in case of
Doctor .
From the Gross Receipts we calculate the Gross Profits and thereon move to calculate Loan
eligibility .Which is the loan amount that can be conveniently sanctioned to the applicant.
Loan Eligibility = Gross Profit * 2
Another important consideration is that the Annual outflow of EMIs should not exceed the
NET PROFIT. The Net Profit is computed by deducting the various costs and losses from the
Gross profit.
STAGES OF HOME LOAN
26
MunirkaHUB
DataEntry
Application
The representation shown above is not a perfect copy of the actual process. This is because
these stages are taking place simultaneously and one application is being taken care for by
the experienced employees of both HDFC Ltd service centre and HDFC Ltd HUB (also called
the back end office).Also the applicant may be asked to send information or may be asked
questions regarding his requirement and/or his documents for his own convenience Hence
the loan application may or may not shuttle through different stages.
APPLICATION STAGE :- This is the stage where the Application Form first reaches the
concerned Service Centre Here all the documents in the application are reviewed by the
experienced staff present at the service centre The HDFC Ltd employee who reviews the
file checks to see whether all documents are present and in their proper place .He checks if
the documents are duly filled,not fake,attested by authority in question and present in
order.In case any document is missing the applicant is contacted electronically or by
mail .The applicant is contacted by telephone and requested for the document until he
27
Login Scanning
RecommendationOver(ROVR)DoubleChecking
Over(DCOVR)
Fixedcharges
Disbursement of loanThe Loan
denies it being with him. This exercise is called FOLLOW UP. the credit appraisal of the loan
application starts at this stage. The service centre employees compute the gross salary, IIR,
FOIR, Loan Eligibility ratio etc.The credit worthiness of the applicant is calculated here.
It is also at this stage that the QUICK DATA ENTRY of the loan application is done to
create a serial no. of the application. after that another page appears and more data is
entered .It is now that a special and unique LOAN A/C NO. is created under which all the
loan processes will be carried out. The number that has been generated is communicated to
the applicant by means of a letter and/or electronic communication the system of
electronically recording the data helps to create ready reference, a proof ,helps in quick and
easy processing of the data. It also helps to very easily and quickly share data with other
employees of HDFC.
The next and important processing performed at the service centre is that of filling
up a document known as the INTERVIEW SHEET. for processing individual loans (salaried
cases) .It contains various simple entries like :-
1. Name of borrower
2. Name of co-borrower
3. Income details:-Family background and permanent address etc.
It also contains various important entries like.
5. Gross Salary
6. Rental
7. Other incomes
8. Obligations: - The various other loans that the applicant is entitled to pay ,their amount,
their remaining terms ,source etc.
9. Remarks;- This collumn contains the various findings that the employee has found out
after thorough review of the applicants documents such as bank statement, salary slip etc.
Hence the interview sheet contains the important findings which the employee has
collected after careful review of the various documents .The interview sheet helps to cut
corners and helps save time by not having other employees to go through the documents
again and again .It hence acts as a souce of quick reference.
28
After all this has been performed well enough the loan application will be arranged
in a file and all it will be given its loan a/c no which also acts as its file no. the file is now
ready to be sent to the HUB where further processing will take place.
SCANNING: - In this stage the various important documents of the applicant are scanned.
this helps to create their electronic copy which acts as a ready reference, a proof, and can
also be shared and utilized by other employees of HDFC Ltd.
DATA ENTRY :- The file has been sent to the back end office or the HUB .At HUB there are
many experts with their own specializations . these officials review the various parts of the
filae again and perform many specialized tasks Data entry is also one of these tasks .this
entry is much more different and complex as compared to the earlier performed Quick Data
Entry. An exhaustive amount and type of information has to be entered into the ILPS
system ranging from Personal Details, Employment Details to Property Rate History and
Customer Interactions.
RECOMMENDATION OVER (ROVR) :- The Recommendation OVER is also reffered to as
the First Appraisal at this stage certain specially appointed persons have been given the
responsibility of recommending a loan. These people have to take special care of reviewing
every document, and all the small details that need to be considered before considering the
loan application to be valid. After this the file is sent to another specially appointed person
as explained below. At this stage if any correction or mistake is present it can be sent back
to the Service Centre.
DOUBLE CHECKING OVER :- As the name suggests at this stage a specially appointed
person will double check all the past proceedings .He will examine the Loan file for any
discrepancies ,any missing and /or misplaced documents,the Credit Appraisal
results,etc.this is a very important stage and must be handled with exceptional care. This is
because a mistake at this stage can cause a great loss to the company.The Double checker is
responsible for the ultimate sanctioning of the loan .If any mistake is done at this stage
29
there is no going back and hence no protection.HDFC takes great care while appointing
double checkers .They should have completed a select number of years with the company
and should have shown exemplary performance and must posses experience.
SANCTIONING :- An authorized sanctioning authority within HDFC itself will review the
remarks of Double Checker and Sanctioning authority .If it considers the loan suitable to be
Sanctioned it gives its approval .After it has given its approval stamp the ILPS system will
automatically send a letter to the Applicant that his loan has been sanctioned.
After this approval the Applicant can go to whichever Service Centre which he selects to get
his loan disbursed.
SPECIAL CASE :- A special case can arise if the applicant has not mentioned the property
for which he wants to take a loan .In that case the applicant can let the case be remain
pending . this means that the Applicants loan request will be considered to be complete
even though he has not decided the property. However the Applicant is expected to finalise
the property in a short time.
A Property Address is necessary to
1. get the loan disbursed
2. Process the Legal and Technical Appraisal of the property and its Papers.
DISBURSEMENT: - The last and final stage in the Home Loan process is that of
disbursement. after the sanctioning has taken place the applicant becomes a registered
customer of HDFC Ltd .
He can now take the disbursement of the loan from any of the various service centre of
HDFC .The loan shall be disbursed in one Lump sum or in suitable installments to be
decided by HDFC with reference to the need and/or progress of construction (which
decision shall be final and binding on the borrower).The borrower hereby acknowledges
the receipt of the loan disbursed as indicated in the receipt.
30
31
32
COMPANY PROFILE
OF
HDFC HOSING DEVELOPMENT FINANCE CORPORATION LTD
INTRODUCTION:-
Housing Development Finance Corporation Limited , founded 1977 by Ravi
Maurya and Hasmukhbhai Parekh, is an Indian NBFC, focusing on home mortgages. HDFC's
distribution network spans 243 outlets that include 49 offices of HDFC's distribution
company, HDFC Sales Private Limited. In addition, HDFC covers over 90 locations through
its outreach programmes. HDFC's marketing efforts continue to be concentrated on
developing a stronger distribution network. Home loans are also Sharcket through HDFC
Sales, HDFC Bank Limited and other third party Direct Selling Agents (DSA).
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The
corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross
premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new
business premium income at Rs. 1,624 Crores. The company has covered over 8,77,000
lives year ending March 31, 2007.
HDFC operates through almost 450 locations throughout the country with its
corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai,
UAE with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing
company in India for the last 27 years.
33
HDFC LTD
72.26% HDFC
STANDARDLIFE
60% HDFCASSET
MANAGEMENT
23.26% HDFC
BANK (inclusive of warrants)
SNAPSHOT-I
Incorporated in 1977 as the first specialized Mortgage Company in India.
Almost 90% of initial shareholding in the hands of domestic institutes and retail
investors. Current 77% of shares held by foreign institutional investors.
Besides the core business of mortgage HDFC has evolved into a financial
conglomerate with holdings In:
CHART:- 3.1
HDFC Standard Life insurance Company- HDFC holds 72.26 %.
HDFC Asset Management Company – HDFC holds 60%
HDFC Bank- HDFC holds 23.26%.
Intelenet Global (Business Process Outsourcing) – HDFC holds 50%.
HDFC Chubb General Insurance Company – HDFC holds 74%.
34
SNAPSHOT-II
Loan Approvals Rs. 805 billion.
(Up to Dec 2007) (US $ 18.30 bn.)
Loan Disbursements Rs.669 billion
(Up to Dec. 2007) (US $ 15.20 bn)
Housing Units financed 2.5 million.
Distribution
Offices 181
Outreach Programs 90
HDFC Limited
Type Public (BSE: 500010)
Founded 1977
Headquarters Mumbai,India
Key peopleRavi Maurya
Hasmukhbhai Parekh
Industry Housing Finance
Revenue US$ 1.49 billion (2008)
Employees 1,029
Website www.hdfc.com
KEY EXECUTIVE HDFC HOUSING DEVELOPMENT FINANCE CORP LTD :-
Mr. Deepak S Parekh: - serves as Executive Chairman and Chief Executive Officer of the
Board of Housing Development Finance Corp. Ltd., (HDFC). He joined HDFC Limited in a
35
senior management position in 1978. He was inducted as a whole-time director of HDFC
Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief
Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered
Accountants (England & Wales).
Mr. K.m mistry: - The Managing Director of the Corporation. He has been employed with
the Corporation since 1981 and was the executive director of the Corporation since 1993.
He was appointed as the deputy managing director in 1999 and the Managing Director in
2000. He is also a member of the Investors’ Grievance Committee of Directors.
Ms. Renu S. Karnad: - The Executive Director of the Corporation. She has been employed
with the Corporation since 1978 and was appointed as the Executive Director of the
Corporation in 2000. She is responsible for overseeing all aspects of lending operations of
HDFC.New Delhi.
BOARD OF DIRECTORS:-
Mr. D S Parekh - Chairman Mr. D N Ghosh
Mr. Keshub Mahindra - Vice Chairman Dr. S A Dave
Ms. Renu S. Karnad - Executive Director Mr. S Venkitaramanan
Mr. K M Mistry - Managing Director Dr. Ram S Tarneja
Mr. Shirish B Patel Mr. N M Munjee
Mr. B S Mehta Mr. D M Satwalekar
GROUP COMPANIES:-
HDFC Bank: World Class Indian Bank- among the top private banks in India.
HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.
36
Intelenet Global: BPO services for international customers.
CIBIL: Credit Information Bureau India Limited.
HDFC Chubb: Upcoming Private companies in the field of General Insurance.
HDFC Mutual Fund
HDFC reality.com: Helps to search properties in all major cities in India
HDFC securities
HDFC Standard Life Insurance Company Ltd Aug, 2000
JOINT VENTURE
HDFC Standard Life Insurance Company Limited was one of the first companies to
be granted license by the IRDA to operate in life insurance sector. Reach of the JV player is
highly rated and been conferred with many awards. HDFC is rated ‘AAA’ by both CRISIL
and ICRA. Similarly, Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s.
These reflect the efficiency with which HDFC and Standard Life manage their asset base of
Rs. 15,000 Cr and Rs. 600,000 Cr. respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.
HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as
a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture.
HDFC Standard Life Insurance Company Ltd. Is one of India’s leading Private Life Insurance
Companies, which offers a range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India’s
leading housing finance institution and the Standard Life Assurance Company, a leading
provider of financial services from the United Kingdom. Both the promoters are will known
37
for their ethical dealings and financial strength and are thus committed to being a long-
term player in the life insurance industry- all important factors to consider when choosing
your insurer.
Business Growth:-
The company commands a market share of over 60% in the housing finance sector.
Leveraging on its brand equity HDFC has also entered the Indian Mutual Fund scene quite
recently. HDFC was the only applicant to be given clearance by the government, to enter
the Rs 250 bn life insurance business. This in itself speaks volumes about the
management’s professional reputation.
Financial year 2000 proved to be a boon for housing finance companies, as the tax
benefits announced in the budget, coupled with the low real estate prices and rising
disposable incomes, spurred housing demand. As a result, demand for housing finance too
has registered high rates of growth. The housing sector has now been recognized as an
engine of economic growth and HDFC is well placed to capitalise on this surge in demand.
Against this backdrop, HDFC logged in an excellent performance. The company’s approvals
and disbursements during the first half of financial year 2001 witnessed a year on year
growth of 33% and 32% respectively. The robust growth in itself is a conclusion that
HDFC’s business is far less susceptible to any economy downturn.
(TABLE:-3.2) Financial Snapshot
Growth ratios FY98 FY99 FY00 1HFY01
38
Operating income 13.7% 21.6% 15.2% 21.1%
Other income 331.7% -24.6% -54.0% 346.8%
Net profits 18.3% 13.8% 20.4% 19.8%
Approvals 28.9% 25.2% 30.3% 33.4%
Disbursements 31.1% 24.4% 31.2% 31.5%
% change compared to corresponding previous period
The entry of new players has not in any way significantly reduced HDFC’s domination in
terms of volume. However, the increased competition has led to a decline in interest spread
(the difference between interest income earned and interest paid). Over the last couple of
years HDFC’s spread has shrunk from 2.1% in financial year 1997 to 1.8% in financial year
2000. When it comes to containing risk, the company’s track record is among the best in
the financial sector. During the financial year 2000, HDFC has reduced the quantum of
loans where payment was in arrears to just 0.9% of its portfolio. This is because individuals
account for nearly 70% of its total outstanding loans. The high level of an individual
investor’s personal contribution in a house makes the possibility of default less likely.
In keeping with its tradition of playing safe, HDFC is diversifying its business. The company
has chosen the acquisition route to increase its assets and customer base in its core
business of housing finance. Its recent acquisition of Home Trust Housing Finance and Gruh
Finance will not only increase its size but will also bring the economies of scale.
Apart from these traditional methods of growing, HDFC is also leveraging the
Internet to consolidate its business. It has picked up a stake in various portals. These are
pure investments to draw synergies for its existing businesses. Its proposed venture with
TCS for setting up call centres can potentially provide HDFC with strong revenue streams.
The venture is aimed at cornering a share of $10 bn IT (information technology) enabled
services market where India has a significant cost advantage. While its investments in new
39
business may not yield immediate returns, they are likely to enhance HDFC’s returns on
equity over the medium term. It will also help in expanding its customer base and provide
more credence to its cross-selling efforts.
HDFC derives an edge in all its forays because of its wide reaching marketing and
distribution network (over 44,000 agents). Once it has the entire range of products (post
insurance), the company has plans to enter into distribution of financial products by
leveraging its own as well as the network of HDFC Bank. The company can leverage its
existing channels to provide the products and services in the areas of Infotech services,
asset management, life insurance and commercial banking. This over a longer time frame
can emerge as a major source of revenue for the company.
The company’s proactivity and brand name, has always accorded it premium
valuations on the bourses. But the evidence of increasing competition (from SBI and ICICI)
may lead to slow down in its growth, in turn affecting its current valuations. Nevertheless,
if its investments in new ventures like call centres, mutual funds, insurance and Internet
initiatives click, then HDFC looks set for higher growth and hence, valuations. Also one
should not ignore the value of its 27% stake in HDFC Bank (India’s No. 1 private sector
bank), which will pay rich dividends to the company.
GRAPH:-3.3
40
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.
ORGANISATIONAL GOALS:- HDFC's main goals are to :-
41
a) develop close relationships with individual households,
b) maintain its position as the premier housing finance institution in the country,
c) transform ideas into viable and creative solutions,
d) provide consistently high returns to shareholders, and
e) to grow through diversification by leveraging off existing client base.
In addition to home building loans, HDFC also offers home extension, home improvement
and home conversion loans. It also helps to identify and value properties. HDFC also offers
depository services in form of term deposits.
Types of Products offered
HDFC provide loans to meet all your requirements for you to make that house a home.
Home Improvement Loan
Home Extension Loan
Loans to professionals for office or clinic.
Home Equity Loans (Loan Against Property)
Loan against Rent receivables
Short Term Bridging Loan.
Loans to professionals for non-residentials premises loan
Key Associates and Subsidiaries: - These are:-
42
HDFC BANK:-
23.26% owned by HDFC(inclusive of warrants)
Market Cap US $ 11 billion
ADRs listed on NYSE
In February 2008, HDFC Bank board approved the merger with
Centurion Bank of Punjab {CBOP} (1 share of HDFC Bank for 29
Shares of CBOP)
1,412 branches, 528 cities, 2,890 ATMs
Over 12 million customer accounts
Key business areas
_ Wholesale banking Retail banking Treasury operations
Financials (as per Indian GAAP) for the half year ended Sept 30,
2008
– Total net revenues: Rs 48.26 bn, increase of 51% over previous
year
– PAT: Rs 9.92 bn, increase of 44% over the previous year
HDFC Standard Life Insurance Company Ltd. (HDFC-SL) :-
Structure: - Strong and stable partnership:-
Tie up with Standard Life Assurance Company, U.K.
43
HDFC holds 72.26% of the equity of HDFC-SL
Products: - Diversified product portfolio covering all life stages and needs:-
Offers 20 individual products and 5 group plans along with 5 optional riders
Offers 8 fund options with market linked products
Premium income and growth: - Values driven growth:-
Total premium income of Rs. 48.59 bn for FY 07-08 (Previous year Rs 28.56 bn); reflecting
a growth of 70% Q1 08-09 growth in total premium of 34% over Q1 07-08 Funds under
management of group new business increased by 8% in as at June 30, 2008 as against the
previous year.
Coverage: - Committed to increasing coverage in an under-insured market :-
Achieved a total sum assured of Rs. 33.12 bn in respect of 0.25 million lives covered in Q1
09 taking the cumulative sum assured to Rs. 907.5 bn covering over 3.66 million lives
Claims other than withdrawals/surrenders amounted to Rs 0.09 bn .
Distribution: - Diversified distribution network to cater to customer preference: - HDFC
network is used to cross sell by offering customized products Operates out of 575 offices
across the country serving over450 locations Network of over 1,62,000 financial
consultants, 379 corporate agents and other sales intermediaries .
Market share: - Market share of 7.3% (private sector) and 4.7% (overall) in terms of
Effective Premium.
Key performance indicators and business practices: -A diversified distribution mix
including the tied agency and alternate channels
Banks, brokers, telemarketing, direct sales force Tied agency contributed 64%
effective premium in Q1 09 Strong bank assurance tie-ups with public, private, co-
operative and foreign banks amongst the leading players in the pensions segment
Leveraging technology to strengthen processes.
Workflow system awarded the best technology innovation
Web based facility to service customers and channel partners
44
HDFC ASSET MANAGEMENT:-
Tie-up with Standard Life Investments (SLI)
HDFC holds 60% of HDFC Asset Management
HDFC MF offers 34 equity and debt oriented products
Earned a Profit after Tax of Rs 1.18 billion for FY08; Return on Equity: 75%
Paid a dividend of 150% for FY08 to equity shareholders
Total assets under management (AUM) as at September 30, 2008, stood at Rs. 647
bn which is inclusive of portfolio management and advisory
Services of Rs. 170 bn.
Equity assets as a proportion of the mutual fund’s AUM is 35%.
HDFC PROPERTY FUND:-
Launched in March 2005
First Scheme: HDFC India Real Estate Fund
– Fund corpus: US $ 250 million – fully invested
– Domestic, 7 year close ended fund
– Funds managed by HDFC Venture Capital Limited
HDFC International Fund
– Fund Corpus: US$ 800 million
– International, 9 year close ended fund
– Targeted at premier institutions and funds across the world
Interested in taking an exposure in Indian real estate.
HDFC ERGO GENERAL INSURANCE COMPANY LTD:-
HDFC holds 74% and ERGO (Germany) holds 26%
The company offers Auto Insurance, Home Insurance, Group Accident Insurance,
Group Travel Insurance, Commercial Insurance which includes Fire and Marine and
Specialty Insurance Products like Directors & Officers Liability .
Achieved Gross Written Premium of Rs. 2.4 bn.
45
Operates out of 28 locations across the country
HDFC network is used to cross sell Home Insurance & Accident Insurance
HDFC and HDFC Bank database is used to cross sell Accident Insurance.
TABLE:-3.4
CONSOLIDATED EARNINGS:-
(As at March 31, 2008)
HDFC consolidated
Return on Equity 27.8% 28.2%
Return on Average Assets 2.7% 2.7%
Earnings per share (Rs) 85 95
Profit after Tax (Rs in billion) 24.36 27.13
Total Assets (Rs in billion) 810.99 925.83
DISTRIBUTION NETWORK: - HDFC’s distribution network spans 254 outlets that include
54 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition,
HDFC covers over 90 locations through its outreach programmes. Distribution channels
form an integral part of the distribution network with home loans being distributed
through HSPL, HDFC Bank Limited and other third party direct selling associates.
46
To cater to non-resident Indians, HDFC has offices in London and Dubai and service
associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Al Khobar, Jeddah and Riyadh in
Saudi Arabia.
HDFC HOME LOAN ADVANTAGE :-
Home loan counselling sharing over 30 years of home loan experience
Door step service
Helps in finding Dream home
47
Wide Product Range
Multiple Repayment Option
Wide Network of financing
Post disbursement service
Loan repayment option
AWARDS & ACCOLADES:-
Goldman Sachs has listed HDFC as one among top 7 financial services organization
in 2008.
HDFC ranked among the top 3 Best Managed Companies in India by Finance Asia in
2007
Selected as the best Indian company in the FIs / NBFCs / Financial Services sector at
the Dun & Bradstreet – American Express Corporate Awards 2006 and 2007.
Best Investment Management Company in India by EUROMONEY 2007
HDFC was awarded a rating of 4 out of 5 in Karmayog's ‘Corporate Social
Responsibility Ratings’ in 2007.
HDFC is featured in the Limca Book of Records 2006, for the landmark achievement
of Rs. One trillion in home loan approvals
HDFC was awarded the Gold Shield in the Finance Sector by ICAI for excellence in
Financial Reporting in 2005. This is the 14th time HDFC has been selected for this
award.
HDFC has been awarded the 'Business Superbrand' status.
HDFC has been awarded the 'Best Home Financier' title by Outlook Money – 2005
Economic Times Corporate Citizen of the Year Award - November 2004.
FUTURE: - HDFC has always been market-oriented and dynamic with respect to resource
mobilisation as well as its lending programme. this renders it more than capable to meet
the new challenges that have emerged. Over the years, HDFC has developed a vast client
base of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this
loyal and satisfied client base for future growth. Internal systems have been developed to
be robust and agile, to take into account changes in the volatile external environment.
48
HDFC has developed a network of institutions through partnerships with some of the best
institutions in the world, for providing specialized financial services. Each institution is
being fine-tuned for a specific market, while offering the entire HDFC customer base the
highest standards of quality in product design, facilities and service
49
50
COMPARATIVE STUDY OF DISBURSEMENT OF HOME LOANS BY
COMMERCIAL BANKS
4.1 - Disbursement of Home loans by different banks:-
HDFC LTD :-
Years No. of Home
loan
account
holders.
Home loan Disbursed
(in crore Rs.)
Distributed Recovered Balance
2004-05
2005-06
2006-07
2007-08
2008-09
700
950
1130
1435
1594
90.07
120.00
144.67
180.33
240.00
63.05
91.20
127.31
165.90
228.12
27.02
28.8
17.36
14.43
11.88
Interpretation:-
On the above table, it is evident that there are increase in No. of account holders
from 700 to 1594 in the year 2008-09. The loan amount distributed among home loan
account holder has also increased from Rs.90.07 crore in 2004-05 to Rs.240 crore in 2008-
09. The recovery procedure for home loans is also strengthening due to increment in
recovered amount, i.e. Rs.63.05 crore to Rs.288.12 crore. So it nut shall there are upward
trend in number of accountholders and disbursement of home loans.
51
Punjab National Bank :-
Years No. of Home
loan account
holders.
Home loan Disbursed
(in crores Rs.)
Distributed Recovered Balance
2004-05
2005-06
2006-07
2007-08
2008-09
810
950
1120
1433
1500
120.15
183.26
213.65
240.87
265.15
97.28
150.00
185.86
231.07
265.05
22.87
33.26
28.05
9.80
9.10
Interpretation:-
The Punjab National Bank is Public sector Bank. It comes second after State Bank of
India in its branch location and expansion. From the Table, the figures show that there are
increasing trend in customer base from 810 in the year 2004-05 to 1500 in the year 2008-
09. The bank also show enhancement in loan amount up to Rs.265.15 crore in the year
2008-09. The recovery process of loans in past is slow but now it is increasing.
52
Standard Chartered Bank :-
Years No. of Home
loan
account
holders
Home loan Disbursed
(in crores Rs.)
Distributed Recovered Balance
2004-05
2005-06
2006-07
2007-08
2008-09
106
130
154
180
260
6.21
11.55
17.06
20.09
24.10
5.27
10.16
14.35
18.68
23.91
0.94
1.38
2.70
1.41
0.48
Interpretation:-
The standard chartered bank is a private sector bank. It has also upgraded its
position in banking sector in DEHRADUN. The figures shown in table reveals that there is
upward shift in customer base of Bank from 106 customers to 260 customers. The bank has
also increased its share in housing finance by distributing Rs. 24.10 crores in 2008-09. The
recovery procedure of Home loan is very sound.
53
ICICI BANK:-
Years No. of
Home
loan
account
holders
Home loan Disbursed
(in crores Rs.)
Distributed Recovered Balance
2004-05
2005-06
2006-07
2007-08
2008-09
650
853
1019
1132
1434
104.33
123.24
150.65
176.75
224.00
98.12
105.00
133.46
144.65
209.16
6.21
18.24
17.19
32.10
14.84
Interpretation :-
The amount reveal that there is tremendous increase in Home loan accountholders.
The amount distributed as home loan is also increased from Rs. 104.33 in 2004-05 to Rs.
224 crore in 2008-09. But the recovery mechanism of the Bank is not so good that’s why
the outstanding amount shows fluctuating trend.
54
4.2 -COMPARATIVE STUDY OF DISBURSEMENT OF HOME LOANS BY COMMERCIAL
BANKS:-
There are number of schemes and products, offered by commercial banks to attract
the customers. The comparison among different commercial banks which offer home loans
in regard of Disbursement of home loans are as:-
No. of Home loan account holders ;-
Table 5.2(a)
Years HDFC LTD Punjab
National
Bank
Standard
chartered Ban
ICICI
Bank
2004-05
2005-06
2006-07
2007-08
2008-09
700
950
1130
1435
1594
810
950
1120
1433
1500
106
130
154
180
260
650
853
1019
1132
1434
Average of No. of accounts holders: - Total of home loan customers
= --------------------------------------
No. of year
55
Table 5.2 (b)
Name of Bank Average (Rs) Percentage of
Accountholders
HDFC LTD
Punjab National Bank
Standard Chartered
Bank
ICICI BANK
1109
1163
166
1018
32
34
5
29
Total 3456 100
56
GRAPH:- 4.2
Home loan holders of HDFC LTD and commercial banks
HDFC LTD PNB SCB ICICI BANK
0
5
10
15
20
25
30
35
home loan holders of hdfc and commercial banks
percentage of home loan
holdes
Interpretation:-
The figure reveals that HDFC LTD is having large number of home loan
accountholders. So it ranks first among other banks. But government sector PNB is not
behind so much with 31% also market leader. The banks have shown increase in their
customers base from 2004 to 2008.but HDFC LTD comes as market leader in the home
loan cases.
57
Home loans distributed by HDFC and Commercial banks:-
Table 4.3 (a)
Years HDFC LTD Punjab
National
Bank
Standard
chartered Bank
ICICI BANK
2004-05
2005-06
2006-07
2007-08
2008-09
120.15
183.26
213.65
240.87
265.15
90.07
120.00
144.67
180.33
240.00
6.21
11.55
17.06
20.09
24.10
104.33
123.24
150.65
176.75
224.00
(Rs.in crore)
Average of home loans granted
Total home loans granted
= ---------------------------------
No. of years
58
Table. 4.3 (b)
Name of Bank Average (Rs) Percentage of home
loans granted (Rs in crore)
HDFC LTD
Punjab National Bank
Standard Chartered Bank
ICICI BANK
204.62
155.01
15.80
155.79
39
29
3
29
Total 531.22 100
To understand the comparison more effectively and closely, it has been shows
Diagrammatically as follows:-
59
GRAPH:- 4.3
Home loans granted by HDFC LTD and commercial
banks
HDFC LTD PNB SCB ICICI BANK
0
5
10
15
20
25
30
35
40
percentage of home
loan granted
Interpretation:-
There is no doubt that every bank tries to maximize its home loan disbursement.
But on the basis of data it is concluded that HDFC LTD shows high average of loan grants
Rs. 20.62 crore as compared to ICICI, standard charted bank and PNB respectively.
Rs155.01, Rs. 15.80 and Rs. 155.79 crores. On this analysis the HDFC LTD are higher loan
provider as compared to other sector banks.
60
Recovery of Home loans:-
Table4.4 (a)
Years HDFC BANK
(Rs in crore)
Punjab
National
Bank( Rs in
crore)
Standard
chartered
Bank (Rs in
crore)
ICICI BANK
(Rs in crore)
2004-05
2005-06
2006-07
2007-08
2008-09
97.28
150.00
185.86
231.07
256.05
63.05
91.20
127.31
165.90
228.12
5.27
10.16
14.35
18.68
23.91
98.12
105.00
133.46
144.65
209.16
Average recovery of home loans
Total home loans recovered
= ----------------------------------
No. of years
61
Table 4.4 (b)
Name of Bank Average (Rs) Percentage of home
loans recovered( Rs in
crore)
HDFC LTD
Punjab National Bank
Standard Chartered Bank
ICICI BANK
184.05
135.21
14.47
138.08
39
30
3
28
Total 471.80 100
It is more clear with the help of this diagram:-
62
GRAPH:- 4.4
Home loans recovered by HDFC LTD and commercial
banks
HDFC LTD PNB SCB ICICI BANK0
5
10
15
20
25
30
35
40
percentage of recovery
Interpretation:-
In the previous years the recovery process of granting loans are very unorganized
and inefficient. So there are less recovery of home loans by the commercial banks. But it is
evident from the table that every bank whether public or private showed increase HDFC
LTD has the greatest recovery of home loans i.e. 39%, thereafter Punjab national bank
recovered the 30% of sanction amount. The standard chartered bank is having lowest
recovery of their granted amount as home loans.
63
Outstanding Balance :-
Table 4.5 (a)
Years HDFC LTD (Rs
in crore)
Punjab
National
Bank(Rs in
crore)
Standard
chartered
Bank(Rs in
crore)
ICICI BANK(Rs in
crore)
2004-05
2005-06
2006-07
2007-08
2008-09
22.87
33.26
28.05
9.80
9.10
27.02
28.8
17.36
14.43
11.88
0.94
1.38
2.70
1.41
0.48
6.21
18.24
17.19
32.10
14.84
Average of balance due
Total of Balance due in 5 years
= --------------------------------------
No. of years
64
Table 4.5 (b)
Name of Bank Average
(Rs)
Percentage of
balance due (Rs in crore)
HDFC LTD
PNB
Standard Chartered Bank
ICICI BANK
20.61
19.89
1.38
17.72
34
33
2
31
Total 59.15 100
Average of one bank
%age = --------------------------- x100
Total Average of Banks
65
The diagrammatically presentation of data is as:-
GRAPH:- 4.5
Balance due on home loans by HDFC LTD and
commercial banks
HDFC LTD PNB SCB ICICI BANK0
5
10
15
20
25
30
35
percentage of balance
due
Interpretation:-
From the above table and figure it shows that standard chartered bank has been less
outstanding balance among other banks. The HDFC LTD got high balances due to large
customer base, not proper recovery process and lack of modernisation of activities. The
public sector bank PNB is having more balance due i.e. 33% as compared to standard
chartered bank and icici bank.
66
ANALYSIS & INTERPRETATION
67
The analysis is based on the responses given by customers through questionnaires.
AGE GROUP OF SURVEYED RESPONDENTS
TABLE 5.1:
Age group No. of Respondents
18 - 25 years 80
26 - 35 years 64
36 - 49 years 30
50 - 60 years 20
More than 60 years 6
CHART-5.1:
40%
32%
15%
10%
3%
Sales
18-25years26-35years36-49years50-60yearsmore than 60 years
Analysis:- From the chart above we find that 47% of the respondents fall in the age group
of 18 – 25 years, 25% fall in the age group of 26 – 35 years and 17% fall in the age group of
36 – 49 years.
68
Therefore most of the respondents are relatively young (below 26 years of age). and 6%
respondent’s age are 50-60 years and 2% respondent’s age are 60 to above years.
GENDER CLASSIFICATION OF SURVEYED RESPONDENTS
TABLE-5.2
Sr. No. Category No. of Respondents Percentage
1 Married 140 70%
2 Unmarried 60 30%
Total 200 100%
Base 200 respondents
CHART-5.2
70%
30%
Marital Status
MarriedUnmarried
Interpretation
From the table and graph above it can be seen that
70% respondent’s are married.
30% respondent’s are unmarried.
Educational qualification of respondent’s
TABLE-5.3
69
Sr. No. Category No. of Respondents Percentage
1 Under graduate 50 25%
2 Graduate 80 40%
3 Post graduate 70 35%
Total 200 100%
Base 200 respondents
CHART-5.3
25%
40%
35%
Educational Qualification of Respondents
Under graduateGraduatePost graduate
Interpretation
From the table and graph above it can be seen that
25% respondent’s are under graduate.
40% respondent’s are Graduate.
35% respondents are Post graduate.
CUSTOMER PROFILE OF SURVEYED RESPONDENTS
TABLE 5.5:
Customer profile No. of respondents
70
Student 15
Housewife 10
Working Professional 100
Business 40
Self Employed 20
Government service employee 15
Chart-5.5
studen
t
housewife
workin
g pro
fessio
nal
busines
s
self-
empoyed
gover
nmen
t ser
vice0
20
40
60
80
100
120
15 10
100
4020 15
0 0
0
0
0 00 0
0
0
0 0
Series3Series2respondents
Interpretation
From the table and graph above it can be seen that:-
51% of the respondents are working professionals, 22% are into business and 11% are
self-employed, 11% of the respondent’s are government service employee and 3% of the
respondents are student and 2% of the respondents are house-wife.
ANNUAL HOUSE HOLD INCOME?
TABLE-5.6
71
Sr. No. Category No. of Respondents Percentage
1 Less than 2 lacs 98 49%
2 Between 2 to 5 lacs 62 31%
3 Between 5to 8lacs 30 15%
4 More than 8 lacs 10 5%
Total 200 100%
Base 200 respondents
CHART-5.6
49%
31%
15%5%
Annual Household Income
Less than 2 lacsBetween 2 to 5 lacsBetween 5to 8lacsMore than 8 lacs
Interpretation
From the table and graph above it can be seen that
49% respondent’s annual household income is less than 2 lacs.
31% respondent’s annual household income is between 2 to 5 lacs.
15% respondent’s annual household income is between 5 to 8 lacs.
5% respondent’s annual household income is more than 8 lacs.
Do you know about HDFC housing development finance corporation LTD?
TABLE 5.7:
72
Category No. of Respondents
Yes 164
No 36
CHART:-5.7
Awareness about HDFC LTD
91%
9%
YESNO
Interpretation:-
From the table and graph above it can be seen that
91% respondent’s are known about HDFC LTD
9% respondent’s are not known about HDFC LTD
Table 5 .8:-
Reasons for getting the home Loan
73
Sr.No. Number of Reasons Percentage(%)
a. Non-availability of funds 36
b. Reluctancy to pay cash in one go 35
c. Tax benefit 24
d. Any other 5
GRAPH:- 5.8
non-availabil-ity of funds
reluctancy tax benefit any other0
10
20
30
40
percentage of customers
Interpretation:-
To interpret the response of the questions, the figures shows that most of the
customers find the problem in availability of funds i.e. 36% and very less number of
74
customers found problem in paying cash in one go is 35%, customers get housing loan for
tax benefits is 24%. This was the expected response because a large number of people find
a problem of availability of funds which works as an obstacle in owning a dream home.
In today's life, people hardly earn both means and ends of life and they don't have
much of money to buy a home or a land to construct house because of cost of property. So,
they take the advantage of home loans provided by different banks at different terms
feasible to the customers. There are very less number of people, who don't own home even
when they have sufficient funds and they take the advantage of home loans because they
don't want to pay huge cash in one go.
On the basis of study, it is concluded that most of people lack of money in fulfiling
their dreams and few of them were reluctant to pay cash in one go and wanted to pay their
home loans slowly in installments.
75
Table-5.9
From where you have got your home loan?
Name of Banks / company (%)Percentage of customers
HDFC LTD 55
Punjab National Bank 15
Standard Chartered Bank 07
ICICI BANK 20
Any other 03
To understand the response more effective and closely, it has been showed
diagrammatically as follows :-
76
GRAPH:- 5.9
From where you have got your home
financed
HDFC LTD
PNB SCB ICICI BANK
any other
0
10
20
30
40
50
60
percentage of customers
Interpretation:-
The analysis showed that a large number of customers prefer HDFC LTD as
compared to others. The data shows that 7% of customers took loan from Standard
Chartered Bank, 20% of customers from ICICI BANK, 15% Customers took loan from
Punjab National Bank, 55% of customers took loan from HDFC LTD and a 3% of customers
fall under the category of 'Any other' which included State Bank of India, Canara Bank,
Punjab and Sind Bank, etc.
The data shows that most of people prefer HDFC LTD compared to public sector
banks and other private banks. This is because of the extra services provided by HDFC LTD.
However, there is less difference in figures of ICICI Bank and Punjab National Bank. But
there is considerable difference in figures of the two private sector banks i.e. ICICI bank and
Standard Chartered Bank. As ICICI is the market leader in the home loans sector. This may
77
be the reason for such difference in Standard Chartered Bank's percentage and ICICI Bank's
percentage. Another reason for specialized services in home loans, more amounts of loans,
and efficient query handling.
However, the analysis showed that the people prefer HDFC LTD for home loan
because of their services and excessive feat compared to other banks.
Table-5.10
Sources of information about Home Loans Scheme?
Sources of information (%)Percentage of customers
Newspapers 49
Magazines 16
Banners/Hoardings/Pamphlets 11
Word of mouth 20
Any other source 04
78
CHART:-5.10 percentage of source of information about home loans scheme
49%
16%11%
20%4%
newspaper
magazines
banners
word of mouth
any other source
Sources of information about Home Loans Scheme
Interpretation :-
The data shows that around 20% of customers got information from source of
'Word of Mouth' which includes information from friends, relatives, colleagues etc. 49% of
customers got information from newspapers, only 16% of customers from magazines and
4% of customers got information about home loans schemes under 'Any other source' and
11% through Banners/ Hoardings/Pamphlets .
79
Table-5.11
Opinion about the services of HDFC LTD?
Services of HDFC LTD Percentage of customers agreeing
Strongly
agree
Agree Neutral Disagree Strongly
disagree
a. Professionally
managed
86% 10% 4% - -
b. Reliable &
transparent
67% 33% - - -
c. Socially responsible 75% 10% 15% 4% -
d. Customer care 20% 68% 8% - -
e. Query handling 20% 76% 4% - -
GRAPH-5.11
80
Opinion of customers about HDFC LTD
a b c d e0
10
20
30
40
50
60
70
80
90
strongly agree
agree
neutral
disagree
strongly disagree
factor
percentage of customers
Interpretation:-
Customers from HDFC LTD are quite satisfied from their services like query
handling and customers social responsibility of banks towards customers and
professionally managed services. They don't give so good response to reliability and
transparency services of banks. So, customer's satisfaction level toward HDFC LTD
services is lightly satisfied.
Table-5.12
81
Opinion of customers about home loan schemes?
HDFC LTD :-
Services of HDFC
LTD
Percentage of customers agreeing
Strongly
agree
Agree Neutral Disagree Strongly
disagree
a. Amount of loan 60% 35% 5% - -
b. Legal formalities 42% 45% 14% - -
c. Interest rates 32% 56% 12% - -
d. Repayment
options
26% 64% 10% - -
e. Security
demanded
20% 32% 48% - -
f. Installments 55% 40% 5% - -
g. Services 45% 30% 18% 6% 1%
h. Processing for
sanction of loan
55% 24% 18% 3% -
GRAPH:- 5.12
82
Percentage of satisfaction level of customers of HDFC LTD
a b c d e f g h0
10
20
30
40
50
60
70
strongly agree
agree
neutral
disgree
strongly disagree
factors
percentage of cus-tomers
Interpretation:-
The analysis shows that the customers of HDFC LTD gave 60 percent of amount of
loan and legal proceedings, 56% to interest rates, 45% to proceedings and services, 55% to
installments. So, customer of HDFC LTD didn't give response regarding the services of the
bank / company except to the amount of loan and legal formalities.
PROBLEMS FACED BY CUSTOMERS IN AVAILING HOME LOANS
83
There are everything in the world has good or bad points. No doubt banking
industry/ company has made many efforts to enhance the customer satisfaction but
customer still faced some problems. These are high lightened as below:
1) The customer does not have proper knowledge about different home loan
products so they face problem in making a good deal.
2) There are procedural delays, which harass the customers lot. This will crush the
curtsy of customers to avail the home loan.
3) The attitude of bank employees some times non cooperative and it creates a
hurdle in building trust and Confidence among customers about banks.
4) The banks do not take into account the paying capacity of customers. So some
customers are not able to get amount of loan needed by them.
So above discussed are the problems which faced by customers while availing home loans.
84
CHAPTER-6
85
FINDINGS
1. HDFC LTD is having good brand image in the minds of customers.
2. Majority of the people have got loans from HDFC LTD only
3. Most of the customers are not aware of the products of HDFC home loans
4. Some of the customer’s felt that the interest rates are some what high
5. Some of the customer not having good faith on private banks like Standard chartered
bank, HSBC bank etc.
6. Most of the people directly go to HDFC to apply a home loan
7. Some of the customer of HDFC already benefited through HDFC home loan products
and services
8. HDFC LTD is providing good services to their customers.
9. ) The interest rates also some what high when compare to other banks
86
SUGGESTIONS
These suggestions have been discussed as follows:-
1) To increase their customers, the HDFC LTD should provide specialized services in
this sector. These services can be such as proper guidance to the customer regarding the
processing of loans, especially for the customers who are illiterate.
2) To satisfy their customers and for good dealings in future, the HDFC LTD should
make prompt disbursement of loan amount to the customers so that they can buy or
construct their dream home as early as possible.
3) The HDFC LTD should use easy procedure, or say, less lengthy procedure for the
sanctioning of loan to the customer. There should be less number of legal formalities, in
case this exists, then, these should be completed in less time. This will be helpful in
attracting more customers.
4) Although the interest rates on specific norms, yet customers seek less interest
rate which can lower their cost of house. So banks should try to lower their interest rates.
Needles to say, that the bank which is having lower interest rates, have the maximum
clients for loans.
5) HDFC LTD provide loan according to the repaying capacity of the customer and
his/her eligibility. Due to which, some customers are not able to get amount of loan needed
by them. So, the HDFC LTD should soften their norms regarding the loan amount.
6) Create awareness: The Company has to take care of awareness creation about the
products and services among the customers.
87
7) Charges: The Company has to reduce the mortality and administration charges.
8) The company has to reduce their interest rates on home loan products and
services.
9) The company has to identify the potential customers.
10) Company should consider the present competition and should act according to
the customer needs.
88
CONCLUSION
1) In my study we came to know that many peoples are interested to take a home loan from
HDFC LTD to construct their homes.
2) Home loans have long period when compare to other personal loans and other loans. So
peoples are confused to take a home loan.
3) Even though the interest rates are high peoples are willing to take a loan from HDFC LTD
due to certain reasons.
45) The loan sanction process is low when compare to other banks.
6) The disbursement process very effective as it time when compared to other banks
Finally the whole research was carried out in a systematic way to reach at accurate
results. The whole research and findings were based on the objectives. However, the study
had some limitations also such as lack of time, lack of data, non-response, reluctant attitude
and illiteracy of respondents, which posed problems in carrying out the research. But
proper attention was made to Carry out research in proper way and to make accurate
conclusion for the HDFC LTD which may beneficial for banks to enhance their customer
base.
89
90
REFERENCES
REVIEWS
Berstain David(2008), “Home equity loans and private mortgage insurance: Recent
Trends & Potential Implications”, Vol.3 No.2, August 2008, Pp. 41 - 53
Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House Price”.Journal
of Housing Economics Vol. 4, No. 3,pp 27 – 34
Fanning (1982), “The Demand for Home Mortgage Debt” Journal of Urban
Economics, Vol 11 No 2, November, pp. 770-774
Godse (1983), “looking a fresh at banking productivity”, Journal of Real Estate
Literature, Vol. No. 13, Page 141 to 164.
Haavio, Kauppi(2000) , “Residential Lending to Low-Income and Minority Families:
Evidence from the 1992 HMDA Data," Federal Reserve Bulletin,Vol no 80(2),
December 2000 Pp-79-108
Kulkarni (1979), “Development responsibility and profitability of banks” Journal of
Economic Perspectives, Vol 9 No 1 ,pp. 26-32.
La courr, Micheal(2007) , “Economic Factors Affecting Home Mortgage Disclosure
Act Reporting” The American Real Estate and Urban Economics Association, Vol.2
No. 2 May 18, 2007, Pp. 45 -58
La cour Micheal(2006) , “The Home Purchase Mortgage Preferences Of Lowand-
Moderate Income Households”, Forthcoming in Real Estate Economics , Vol 18, No
4 , December 20, 2006, p. 585.
Vandell ,kerry D(2008), “Subprime lending and housing bubble:tail wag
dog?”International Journal of Bank Marketing, vol 21,no 2, pp. 53-7
Brochure on home loans from HDFC LTD
NEWS PAPERS
The Times of India
Financial Express
91
WEB PAGES:-
http://www.hdfcindia.com/
http://www.hdfcindia.com/others/popup/news/hdfc_fin_result_june_30_08.html
www.hdfc.com
http://www.iloveindia.com/real-estate/housing-finance- companies/hdfc.html
http://www.loansnews.info/Home-loan/hdfc-home-loans/
http://www.hdfcindia.com/loans/hm-loan-documents.asp
http://www.thinkplaninvest.com/2009/01/hdfc-will-cut-home-loan-rates/
http://www.suncorp.com.au/suncorp/personal/home_loans/tips/faq.aspx
http://investing.businessweek.com/research/stocks/people/people.asp?ric=HDFC.BO
http://www.economywatch.com/companies/forbes-list/india/housing-development-
finance-corporation.html
http://www.hdfcindia.com/loans/home-loan.asp
http://docs.google.com/gview?a=v&q=cache:woJTMDV1HLYJ:www.hdfc.com/pdf/
32AGM%2520speech.pdf+hdfc+housing+finance+development+product&hl=en&gl=in
http://www.munichre.com/en/press/press_releases/
2007/2007_10_30_profile_hdfc.aspx
92
http://www.hdfc.com.mv/faq.htm
http://ayaanbayaan.com/hdfc-ltd-financial-results-indian-gaap-for-the-period-april-to-
june-2009/
http://www.valuenotes.com/press/pr_HDFC_250ct05.asp?
ArtCd=70013&Cat=C&Id=100
93
QUESTIONNAIRE
Dear Sir/ madam
I am D.V.Narayana Reddy doing MBA from Osmania University. I m preparing a project on
A STUDY ON HOME LOANS. For this I have designed a Questionniare to know your views
and satisfaction level of home loans .please fill the given as per your thinking and
experiences with this. I will be thankful to you for this.
Name: ………………………………………………………………………..
Address: ……………………………………………………………………..
Contact No :®………………( O)……………… (M)………………………
City: ………...............Pin: ………………….State: ……………………….
1. Name: ____________________
2. Age:
(a) 18-25 years (b) 26-35 years (c) 36-49 years
(d) 50-60year (f)more than 60 years
3. Marrital Status?
(a) Married (b) Un married
4. Educational qualification of respondent’s?
(a)Under graduate (b) Graduate (c) Post graduate
94
5. occupation of respondents?
(a) Student (b) Housewife (c) Working Professional
(d) Business (e) Self Employed (f) Government service employee
6. What is your Annual Household Income?
(a) Less than 2 lacs (b) Between 2 to 5 lacs
(c) Between 2 to 5 lacs (d) More than 8 lacs
7. Do you know about HDFC housing development finance corporation LTD?
(a) Yes (b) No
8. Reasons for getting the home Loan?
(a) Non-availability of funds (b) Reluctancy to pay cash in one go
(c) Tax benefit (d) Any other
9. From where you have got your home loan?
(a) HDFC LTD (b) Punjab National Bank (c) Standard Chartered Bank
(d) ICICI BANK (e) Any other
10 Sources of information about Home Loans Scheme?
(a) Newspapers (b) Magazines (c) Banners/Hoardings/Pamphlets
95
(d) Word of mouth (f) Any other source
11 Opinion about the services of HDFC LTD?
(a) Strongly agree (b) Agree (c) Neutral (d) Disagree
(e) Strongly disagree
12 Opinion of customers about home loan schemes?
(a) Strongly Agree (b) Agree (c) Neutral (d) Disagree
(f) Strongly disagree
18. Did you face any problem after sanction of loan?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
THANKS
96