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LIC Housing Finance Limited5.1 ESTABLISHMENT OF LICHFL
The Life Insurance Corporation of India has been established by the
government of India under the company law of 1956, to provide the life
insurance for Indian citizens and collect their small savings for their bright
future. LIC of India is providing loans for housing since 1964i. The LIC of
India is the largest provider of funds for the house construction and house
purchase. It invests about 12 to 19ii percent of its total investible resources in
the housing sector. LICs investment account for about 70 percent of total
indirect institutional finance. It caters to the housing finance requirements of
state housing boards, Apex co-operative societies and HUDCO. The remaining
portion of funds are channelised directly to its policy holders agents
employees, staff house building programs and co-operative housing societies
promoted public limited companies. Some of the well-known schemes in which
it directly lends are: Bima Niwas Yojana (BNY), Own Your Home Scheme
(OYHS), and Own Your Apartment Scheme (OYAS). In 1989 Government of
India disclosed its new “Rastriya Grah Nirman Neeti” and established National
Housing Bank (NHB) in the same time in 19 june 1989 Life Insurance
Corporation of India also established a separate corporation for the housing
finance that is Life Insurance corporation Housing Finance Limited
(LICHFL) LIC Housing Finance Ltd. is one of the largest Housing Finance
company in India. The company was promoted by LIC of India and went
public in the year 1994. The Company launched its maiden GDR issue in 2004.
The company enjoys ‘AAA’ rating from CRISIL on its debt issuances indicating
highest safety with regard to the ability to service interest and repay capital.
The company recently launched its maiden Fixed Deposit program, rated
FAAA/stable by CRISILiii.
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LIC Housing Finance Limited
5.2 OBJECTIVES OF LICHFL
Due to insufficient investment and higher required of housing finance LIC of
India established LICHFL to fill the gap of housing investment demand and
supply The main objectives of the Company are:
(i) To provide secured housing finance at an affordable cost;
(ii) To promote sound healthy, viable and efficient housing finance to
cater to all segments of the population;
(iii) To provide housing finance to adequately serve different regions and
different income groups;
(iv) To make housing more affordable;
(v) To augment and upgrade the housing stock in the country;
(vi) To augment the financial resources for the sector;
(vii) To enable the housing finance system to assess the capital market for
resources;
(viii) To providing long term finance to individuals for purchase /
construction / repair and renovation of new / existing flats / houses;
(ix) To provide finance on existing property for business / personal
needs and give loans to professionals for purchase / construction of
Clinics / Nursing Homes / Diagnostic Centers / Office Space and
also for purchase of equipments; and
(x) To promote saving for housing.
5.3 ORGANISATION OF THE LICHFL
Organization is the process of so combining the work which individuals
or groups have to perform with facilities necessary for its execution, that the
duties so performed provide the best channels for efficient, systematic, positive
and coordinated application of available efforts. Organization is the executive’s
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LIC Housing Finance Limited
structure of an enterprise- a basic framework within which the executive’s
decision-making behavior occurs. The managerial function of organizing is the
process of establishing relationship among available organization resources so
that their structure enables achievement of objectives of the enterprise.
Resources are personnel, function, and physical factors. Relationships center
round status, role, responsibility, authority and accountability, structure may be
fictionalized-line, line and staff, committee and project. In the organization
employees are placed in the four categories: to managers, middle managers,
first line managers, and operative. How these organizational categories are
determined, and how is the interaction among these levels defined? Who
reports to whom, and who has the authority to make decisions? These are just
some of the aspects of the organization that we are going to be looking in the
housing industry. Diagram below will represent the picture of organizational
and management structure of specialized housing finance institution in India.
Following diagram exhibits the organizational and management position of the
LICHFL, it is clear that LICHFL adopt the line structure and clear hierarchy
and unity of command, specialization, clear unbroken line of authority,
delegation, span of control by the different senior executives at different level.
150
Managing Director
General Manager
Deputy Manager
Vice Chairman
Branch Manager
Section Manager
Chairman
Executive Staff
LIC Housing Finance Limited
Management Structure
From the above structure it is very clear that all the major decisions-making
powers in the hand of top management at the head office level and regional level. For
the sanctioning of the certain level of loan amount in the hand of branch level like the
5-10 lacss, and than upto 20-25 lacss in the hand of regional level, General Manager,
Deputy General Manager level, and above that it is in the hand of top executives at
the head office leveliv. Same hierarchy has been followed in others matters of
management. Major policy decisions are taken by the top level managers at the head
office level regarding the interest rates changes, investments, maximum and minimum
loan amount reduction of processing and administrative expenses. 09 persons are in
the board of directors list (Seven non executives and two executives directors), 1 is
General manger (taxation) & company secretary, 8 are senior executives and six are
Regional Managers of different regions (Central Region, South Central Region,
151
Head Office Level
Branch Level
Regional Level
LIC Housing Finance Limited
Eastern Region, Western Region, Southern Region, Northern Region)v. The Company
possesses one of the industry's most extensive marketing network in India :
Registered and Corporate Office at Mumbai, 7 Regional Offices, 13 Back Offices, 1
customer service point and 183 marketing units across India backed by chain of camp
offices. In addition the company has appointed over 1292 Direct Sales Agents
(DSAs), 6800 Home Loan Agents (HLAs) and 535 Customer Relationship Associates
(CRAs) to extend its marketing reach. Back Offices spread across the country conduct
the credit appraisal and administrative functions. The Company has set up a
Representative Office in Dubai and Kuwait to cater to the Non-Resident Indians in the
Gulf countries covering Bahrain, Dubai, Kuwait, Qatar and Saudi Arabia. Today the
Company has a proud group of over 12,00,000 prudent house owners who have
enjoyed the Company's financial assistance.
Subsidiary companies:
The financial statements along with the Reports of the Directors of the
Company’s wholly owned subsidiaries namely LICHFL Care Homes Limited,
LICHFL Financial Services Limited, LICHFL Trustee Company Private Limited and
LICHFL Asset Management Company Private Limited for the year ended 31st March
2008, are attached along with the statement pursuant to Section 212 of the Companies
Act, 1956, with respect to the said subsidiaries. The brief reviews of the subsidiary
companies are as under:
1. LICHFL Care Homes Limited
To address to the crying need of housing for the senior citizens of the country,
the Company had promoted LICHFL Care Homes Limited, to establish and operate
assisted living centres. It launched its eco-friendly pilot project in Bangalore with
cost-effective independent cottages and all other on-campus amenities, fully
structured and self-contained to address every possible need of residents. It has
library, community centre, home theatre, meditation centre, doctors on call and
ambulance to take the ailing to the nearest city medicare centre – all that would make
the lives of senior citizens comfortable and satisfying. During the current year, the
Company proposes to start construction of project at Bhubaneswar and finalise the
purchase of land for few more projects. Company’s total loss was 13,04,457 rupees
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LIC Housing Finance Limited
(31 March 2010)for the previous financial years of the subsidiary since it became
subsidiary of LICHFL.
2. LICHFL Financial Services Limited
LICHFL Financial Services Limited was incorporated on 31st October 2007
for undertaking non fund based activities like marketing of housing loans, insurance
products, credit cards, mutual funds, personal loans etc. Effective steps for starting the
business of the Company are also being taken. However, till 31st March 2010, the
Company has earned profit 5,38,625 rupees.
3. LICHFL Trustee Company Private Limited
LICHFL Trustee Company Private Limited was incorporated on 5th March
2008 for undertaking the business of trustees of venture capital trust, funds – in India
and offshore fund. Company’s total loss was 37,602rupees till 31 March 2010.
4. LICHFL Asset Management Company Private Limited
LICHFL Asset Management Company Private Limited was incorporated on
14th February 2008 for undertaking the business of managing, advising, administering
mutual funds, unit trust, investment trust in India as well as in abroad. This subsidiary
company was also in loss its total loss was 91,05,977 rupees till March 2010.
5.4 RESOURCES OF FINANCIAL FUNDS-
The Authorized Capital of the Company is Rs.1500 Million (Rs.150
Crores) and its paid up Capital is Rs.850 Millions (Rs.85 Crores). The
Company is recognized by National Housing Bank and listed on the National
Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE) and its
shares are traded only in Demat format. The GDR's are listed on the
Luxembourg Stock Exchange.
The sources of funds of LICHFL are broadly categories in two
categories shareholders’ fund and loan funds this can be derived by below flow
chart
153
Sources of Funds of LICHFL
Share holders’ Fund Loan Funds
Capital Unsecured LoansSecured LoansReserves and Surplus
LIC Housing Finance Limited
Table 5.4.1
Sources of Funds of LICHFL (Amount in
Rupees) Sources Of Funds 31.03.2011 31.03.2010
Share holders' fund
Capital * 949,963,475 949,963,475
Reserves and Surplus ** 40,741,077,797 32,926,760,119
Loan FundsSecured Loans*** 407,006,087,696 310,149,822,039
Unsecured Loans **** 44,622,240,744 37,431,745,717
Total 493,319,369,712 381,458,291,350Source: computed from annual reports
According to above information it is clear that capital position was same
in 2011 and 2010 but reserve and surplus have been increased form
Rs.32,926,760,119 to 40,741,077,797 the total increment was of
Rs.7814317678. Secured loan increased from Rs. 310,149,822,039 to
407,006,087,696 and unsecured loan also increased from Rs. 37,431,745,717 to
Rs. 44,622,240,744 the detail of these sources of funds were as under-
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LIC Housing Finance Limited
* CAPITAL (Amount in Rupees)
CAPITAL 31.03.2011 31.03.2010Authorised (Equity Shares of Rs.10/- each) 1,500,000,000 1,000,000,000(a) Issued, Subscribed and Paid Up 474,663,000 Equity Shares of Rs.2/- each(Previous year 94,932,600 of Rs. 10/ each) fully paid up
949,326,000 949,326,000
(b)Add: Amount received on forfeited shares 637,475 637,475
Total (a+b) 949,963,475 949,963,475
Source: computed from annual reports
The authorized capital of company was 100 crore rupees in the F.Y.
2007 that has been increased upto Rs.150 crore for the F.Y. 2010-11. Issued,
Subscribed and paid up capital of the company was same 94.9326 crore rupees
for the FY 2009-10 and 2010-11. Total amount received on forfeited shares
was 0.0637 crore rupees and total capital was 94.9963crore rupees.
**RESERVES AND SURPLUS (Amount in Rupees)
RESERVES AND SURPLUS 31.03.2011 31.03.2010
(a) Capital Reserve 4,793,333 4,793,333
(b)Share Premium 9,012,854,875 9,012,854,875
(c)Special Reserve - I (in terms of Section 36(1)(viii) of the Income-tax Act,1961 and Section 29C of National Housing Bank Act, 1987) (Upto financial year 1996-97)
389,800,000 389,800,000
(d)Special Reserve - II (in terms of Section 36(1)(viii) of the Income-tax Act,1961 and Section 29C of National Housing Bank Act, 1987) (From financial year 1997-98)
14,544,901,385 11,924,901,385
(e)Market fluctuation Reserve 0 0(f)General Reserve 11,480,400,108 7,980,400,108(g)Surplus in Profit and Loss Account 5,308,328,096 3,614,010,418
TOTAL 40,741,077,797 32,926,760,119Source: Computed from annual reports
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LIC Housing Finance Limited
Capital reserves was 0.4793 crore rupees, share premium was 901.2854
crore rupees, special reserve-І was Rs. 38.98 crore , special reserve-II was Rs.
1454.490 crore, general reserve was 1148.04 crore and surplus was 530.83
crore rupees and total reserves and surpluses were 4074.107 crore rupees for
the year ended 31 March 2011.
***SECURED LOANS (Amount in Rupees)
SECURED LOANS 31.03.2011 31.03.2010
Non-Convertible Debentures with zero coupon debentures 258,900,731,890 170,534,030,527
Term Loans from scheduled banks 125,286,165,395 116,515,995,391
From National Housing Bank (Refinance) 15,334,941,411 12,914,131,121
From Life Insurance Corporation of India 7,484,249,000 10,185,665,000
Interest accrued and due on loan – - 0
Total 407,006,087,696 310,149,822,039
Source: Computed from annual reportsLoans and advances from banks and other loans and advances are secured by a negative lien on all assets of the Company and an irrecovable Power of attorney given by the Company for creation of Mortgage on the properties of the borrowers of Housing Loans and for recovery of monies directly from the borrowers of Housing Loans.
Secured loan comprises four types of funds namely- Non convertible
debentures, Term loans for scheduled banks, Refinance from NHB and Loan
from LIC of India. Total secured loans were of Rs. 40700.608 crore which was
31014.982 crore rupees in FY2009-10. The part of non-convertible debentures,
term loan from scheduled banks and refinance of NHB were increasing
gradually but the part of LIC of India was decreasing.
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LIC Housing Finance Limited
****UNSECURED LOANS (Amount in Rupees)
No. UNSECURED LOANS 31.03.2011 31.03.2010
1 Public deposits@ 2,457,918,820 3,261,937,820
2 Other loans and advances
I Upper tier II Bonds# 15,000,000,000 5,000,000,000
Ii Subordinated Bonds ## 15,000,000,000 10,000,000,000
Iii Life Insurance Corporation of India 1,862,862,826 1,568,050,539
Iv Commercial Paper – 5,350,000,000 8,300,000,000Less: Discount not written off – -48,540,902 -148,242,642[Maximum outstanding during the year Rs.12,350,000,000 – (Previous Year Rs.14,800,000,000 )]
5,301,459,098 8,151,757,358
v Non-convertible Debentures & 5,000,000,000 9,450,000,000
Total 44,622,240,744 37,431,745,717Source: Computed from annual reports## Subordinated bonds are repayable at par after ten years from the date of issue i.e. 24th October, 2005 @ The company is in the process of creating a floating charge on the statutory liquid assets in favour of the Trustee for Depositors -The company has designated the following liquid assets amounting to Rs.1227749208 ( Previous Year Rs. 414634208) for this purpose Government Securities 1,065,650,000
Fixed Deposits Placed with Bank 162,099,208
Total 1,227,749,208
# Upper Tier II Bonds are redeemable at the end of 15 years from the deemed date of
allotment (with call option exercisable after 10 years) with prior approval of National
Housing Bank
& Due and payable within one year Rs. 5,000,000,000
Unsecured loans play an important role in the financial situation of the
company. Total unsecured loans were 4462.22 crore rupees for the FY 2010-11
which shows 719.05 crore rupees increment over the previous financial year.
Part of Bonds , Debentures and Life Insurance Corporation Of India were
increasing but the part of commercial paper borrowings was decreasing.
LICHFL started public deposit scheme in 2008 in this scheme company got
15.702 crore rupees in 2008 and 245.79 crore rupees in 2010-11.
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LIC Housing Finance Limited
Domestic borrowings
During the volatile and rising interest rate scenario, the Company was
able to contain its borrowing costs. As a policy, efforts were made to re-price
the existing borrowings either by negotiation or through entering into
derivatives. The company’s borrowing is planned taking into consideration LM
gaps, interest rate mismatches. But, this depends on the prevailing market
conditions. LIC housing finance has got the highest rating in four categories (1)
Bank borrowings (2) Non convertible debentures (3) Commercial paper and (4)
Public deposit schemes, from CRISIL/CARE rating agencies, which has helped
the company to procure funds at very competitive rates. The Company also
explored the option of public deposit and mobilized Rs.245.79 crore. The
composition of outstanding borrowings as on 31st March 2011 and the ratings
assigned by rating agencies were as under:
Table 5.4.2
Borrowings of LICHFL
Particulars% to total
borrowingRating
Term loans from scheduled
banks27.78% “AAA/Stable”/ P1+ by CRISIL
Refinances from NHB 3.40%
Term loans from LIC of India 1.66%
Upper tier II bonds 3.33%“AAA/Stable” by CRISIL /
“CAREAAA” by Care
Non-convertible debentures 58.39%“AAA/Stable” by CRISIL /
“CAREAAA” by Care
Subordinated bonds II tier 3.33% “AAA/ Stable” by CRISIL
Public deposit 0.57% “FAAA” by CRISIL
Commercial paper 1.13% P1+by CRISIL
Others 0.41%
Source: Computed from annual reports
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LIC Housing Finance Limited
5.5 SCHEMES OF LIC HOUSING FINANCE LIMITED
'You have a need, we have a scheme.'
This simple principle has made LIC Housing Finance one of the biggest
success stories of recent times. Company offers home loans at low and
attractive interest rate to Resident Indians as well as Non-Resident Indians.
Company’s special schemes for Pensioners have been appreciated by all.
Company provides loans not only for purchase, construction, repair, renovation
or purchase of plot, but also for consumer durables. Company offers two
schemes of ‘Sampurna Griha’ for buying of housing goods up to Rs. 2 Lacs.
Interest Rate has been fixed at a very low value as they aim to increase the
standard of living of the people. Company announced a special scheme called
‘Green House’ for professionals like Doctors, Software Engineers, CA's etc.
Step-Up EMI scheme has been introduced for those youngsters below the age
of 35 years who have future prospects of increase in income. Company also
offers special facilities to NRI's in Gulf countries residents.
159
Home Loan
Residential Indian
Pensioners
Builders/Developers
Loans to Professionals
Reserve Mortgage
Home Entity
Facilities
Corporate Employees
Office premises
Loan of Credit to corporate
Co-Op. Societies
Non-Residential Indians
Staff Quarters
Individual Loan
Corporate Loan
Others
Public agencies
LIC Housing Finance Limited
LOAN CLASSIFICATION CHART OF LICHFL
Individual loan
(a) For Resident Indians
Schemes for individual at the basis of citizenship can be broadly
classified in two categories one for Resident Indians and another for Non-
Resident Indians. At the basis of purpose schemes can be divided in five
categories:-
(i) Loan for Purchase
(ii) Loan for Construction
(iii) Loan for Extension
(iv) Loan for Repairs/Renovation
(v) Loan for Plot purchase
160
Indian Residents Non-Indian Residents
PurchaseConstruction Consumer DurablesPlot -PurchaseExtensionRepair/Renovation PurchaseConstructionExtensionRepair/RenovationPlot -PurchaseConsumer Durables
LIC Housing Finance Limited
Schemes of LIC HOUSING FINANCE Ltd.
Griha- Griha- Griha- Griha- Grih- Sampurna- Griha- Griha- Griha- Griha- Griha- Sampurna-Prakash Prakash Prakash Prakash Prakash Griha Sobha Sobha Sobha Sobha Sobha Griha
Griha- Griha- Griha- Griha- Griha- Griha- Griha- Griha- Griha- Griha-Laxmi Laxmi Laxmi Laxmi Laxmi Laxmi Laxmi Laxmi Laxmi Laxmi
‘GRIHA PRAKASH’
This is a basic and very successful scheme of LICHFL this is available
only for Resident Indians. It covers many aspects of finance needs as purchase /
Construction / Extension / Repair / Renovation / Plot Purchase to individual
home or flat, finance provided under ‘Griha Praksha’ scheme the minimum
amount is rs.100000.00 rupees and maximum 1 crore rupees. Under this
scheme up to 85% loan of the total Cost of the property including stamp duty
and registration charges, provided. Required securities are mortgage of the
property, a demand promissory note and life insurance policy of LIC of India
have to submit by borrower. Maximum loan term is 20 years or retirement or
age 70 years whichever is earlier. Repayment mode is equated monthly
installments (EMI) and processing fee is 1% of the sanctioned loan amount and
service tax extra.
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LIC Housing Finance Limited
Griha Prakash
1 Loan Amount Min. Rs. 1,00,000.00
2 Purpose Purchase / construction / Extension / Repair /
Renovation / Plot Purchase
3Loan to Property
Cost
85% of total Cost of the property including Stamp
Duty and Registration Charges.
4 Loan Term Maximum 20 years
5 Repayment ModeEquated Monthly Instalments(EMI) - Monthly Rest
Basis
6 Security
1. Equitable Mortgage of Residential
House/Flat/Plot
2. Demand Promissory Note.
3. Life Insurance Policy of LIC of India
7 Upfront Fees1.00% of Loan Amount Sanctioned + Service Tax as
applicable.
8 Rate Of Interest As per current rate
9 Special conditions
Source: Company documents and brochure
‘NEW GRIHA LAXMI’
LIC Housing Finance Limited is one of the largest housing finance
company in India, has started a new scheme on 31 October 2005 offering home
loans against the security of certain approved financial assets like bank fixed
deposits, national savings certificates and life insurance policies, called ‘New
Griha Laxmi’, under this scheme, home loans is available up to 95% of the
liquid value of the security, subject to a minimum of Rs. 50,000. There is no
upper limit on the amount borrowed or on the term of the loan. Repayment of
loan can be through Equated Monthly Installments (EMI), or by way of
interest. Loan can be taken for purchase / construction / repairs / renovation /
extension of house or flat. One time upfront fee Rs. 1,000 charged to the
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LIC Housing Finance Limited
customer, irrespective of the loan amount applied for. This product is also
available in combination with the other products of the Company.
This product offers a great deal of flexibility to the home loan
borrowers. It makes enable them to acquire real estate assets without
liquidating their financial assets. Guarantors are also not required. It makes
also enable the customers to acquire home loans against the security of life
insurance policies which are essentially long-term assets with restricted
liquidity. Processing time and paperwork for granting this loan is also virtually
nil.
New Griha Laxmi1 Loan Amount Min 50,000.00, Max No upper limit
2 Purposepurchase / construction / repairs / renovation /
extension of house or flat
3Loan to Property
CostUp to 95% of the liquid value of the security
4 Loan Term Max. 20 years
5 Repayment ModeEquated Monthly Installments (EMI), or way of
interest
6 Security
life insurance policies
Approved financial assets like bank fixed deposits,
national savings certificates
7 Upfront Fees Rs. 1,000
8 Rate Of Interest As per current rate
9 Special conditions Guarantors are not required
Source: Company documents and brochure
(b) For Non-Resident Indians
‘GRIHA SHOBHA’
‘Griha Shobha’ is a very successful scheme of LICHFL for Non-
Resident Indians (NRI’s) under this scheme loans are provided for purchase /
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LIC Housing Finance Limited
Construction / Extension / Repair / Renovation / Plot Purchase to individual
home or flat, under ‘Griha Shobha’ scheme the minimum loan amount is
rs.500000.00 and maximum 1 crore rupees. Under this scheme up to 85% loan
of the total Cost of the property including stamp duty and registration charges,
provided. Under security mortgage of the property such as house/flat/plot, a
demand promissory note and life insurance policy of LIC of India have to be
provided by borrower. Maximum loan term is 10 years for Non-professionals
and 15 years for professionals or retirement or age 70 years whichever is
earlier. Repayment mode is equated monthly installments (EMI) and
processing fee is 1% of the sanctioned loan amount, service tax extra. For this
scheme NRI’s have to fulfill all the terms and conditions of the Reserve Bank
of India (RBI)
Griha Shobha
1 Loan Amount Min. Rs. 5,00,000.
2 Purpose Purchase / construction / Extension / Repair / Renovation / Plot Purchase
3 Loan to property cost
4 Loan TermNon- Professional : Maximum 10 yearsProfessional : Maximum 15 years
5 Repayment ModeEquated Monthly Instalments(EMI) - Monthly Rest Basis
6 Security1. Equitable Mortgage of Residential House/Flat/Plot2. Demand Promissory Note.
7 Upfront Fees1.00% of Loan Amount Sanctioned + Service Tax as applicable.
8 Special ConditionsAll conditions including payment of margin money as per RBI Guidelines.
9 Rate of Interest As per current rateSource: Company documents and brochure(c) For pensioners
(i) Before retirement-
LICHFL has special schemes for pensioners, before their retirement.
Under this scheme minimum loan amount Rs. 100000.00 is available for
purchase / construction and extension of house or flat. Persons whose age is 50
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LIC Housing Finance Limited
years or more and having a pension scheme after retirement may apply for loan
under this scheme. Person has to provide a undertaking letter to the company
that the entire loan or 30% or an amount as decided by the area office will be
repaid out of the retirement benefits is required. The balance is to be repaid
from the pension income. The amount of principal to be repaid at the time of
retirement will depend on the pension amount the applicant is eligible after
retirement. Maximum loan term is 15 years or 70 years of age whichever is
earlier.
Before retirement
1 Loan Amount Min Rs.100000.002 Purpose purchase, construction, extension of House / Flat
3Loan to Property Cost
85% of total Cost of the property including Stamp Duty and Registration Charges.
4 Loan TermThe term of the loan will be up to 15 years or 70 years of age whichever is earlier.
5Repayment Mode
Entire loan or 30 % or an amount as decided by the Area Office will be repaid out of the retirement benefits is required. The balance is to be repaid from the pension income
6 SecurityA Guarantor acceptable to the Company is requiredEquitable Mortgage of Residential House/Flat/Plot
7 Upfront Fees 8 Rate of Interest As per current rate
9Special conditions
(i) Persons whose age is 50 or more and having a pension scheme after retirement may apply for loan under this scheme.
(ii) An undertaking letter that the entire loan or 30 % or an amount as decided by the Area Office will be repaid out of the retirement benefits is required.
(iii) The balance is to be repaid from the Pension Income. The amount of Principal to be repaid at the time of retirement will depend on the Pension amount the applicant is eligible after retirement.
Source: Company documents and brochure
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LIC Housing Finance Limited
(ii) After retirement-
LICHFL introduced schemes for pensioners, after their retirement.
Under this scheme minimum loan amount is Rs. 100000.00 and loan is
available for purchase / construction and extension of house or flat. Persons
who have retired and having a stable income throughout their life from pension
may apply for loan. Under this scheme pension or any portion thereof is not
allowed. Maximum loan term is 70 years of age.
After retirement
1 Loan Amount Min Rs.100000.00
2 Purpose purchase, construction, extension of House / Flat
3Loan to
Property Cost
85% of total Cost of the property including Stamp Duty and
Registration Charges.
4 Loan Term 70 years of age.
5Repayment
Mode
The loan is to be repaid before the applicant attains the age
of 70 years.
6 SecurityA Guarantor acceptable to the Company is required
Equitable Mortgage of Residential House/Flat/Plot
7 Upfront Fees
8 Rate Of Interest As per current rate
9Special
conditions
(i) Pensioners having a stable income throughout their
life from pension may apply for loan under this
scheme.
(ii) Commutation of Pension or any portion thereof is
not allowed.
Source: Company documents and brochure
(d) Facilities
(i) Green-Channel facility:
LICHFL provides a green channel facility for
Professionals like Practicing Doctors, Chartered Accountants, Cost
Accountants, Executives holding IIM diplomas and Computer Engineers.
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LIC Housing Finance Limited
Loans can be applied under any of the usual Schemes. A one-time
processing and Administrative fee (non-refundable) @ 1.0% of loan applied
for, is payable. Inspection of property and title clearances are undertaken
simultaneously as soon as the loan is sanctioned. Under this scheme loan is
disbursed quickly. Collateral security of LIC Policy upto the extent of 50% of
the loan amount is sufficient.
(ii) Step-up EMI Facility:
This facility is extended, keeping in view the prospective increase in
income of the Borrowers, and is available to people who have good prospect of
future increase in income, viz., young Professionals/Executives who are less
than 35 years of age.
This facility envisages flexible mode of repayment through Stepping up
of EMI during the tenure of loan. Under this Facility, the EMI will initially be
fixed at a lower amount; this would be changed twice (i.e., on the 6 th and the
11th year) during the loan tenure (15 years); the rate at which the EMI will be
stepped-up in the 6th and 11th year would be at 10/15/20 % of the initial EMI as
preferred by the Applicant.
Corporate loan :(a) Corporate employees
‘CORPORATE EMPLOYE ES' HOUSING LOAN SCHEME’
It is a special scheme for employees of approved corporates by
LICHFL under this scheme housing Loan is available for Construction /
Purchase / Extension / Renovation of House / Flat at concessional terms for
employees of approved 179 corporates with whom the company has a tie-up.
Any of the following concessions are applied selectively or in combination
depending on the tie-up which can be ascertained from the Nodal Area Office
from where the proposal originated.
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Corporate Employees' Housing Loan Scheme
1 Loan Amount Min Rs.100000.00
2 PurposeConstruction / Purchase / Extension / Renovation of House / Flat
3Loan to Property Cost
-
4 Loan TermMaximum loan term is 20 years or retirement or age 70 years whichever is earlier
5Repayment Mode
Repayments by Equated Monthly Installment (EMI) through Salary Deduction.
6 SecurityLife Insurance policy as collateral Security may be waivedGuarantor may be waived
7 Upfront FeesUpfront Fees payable will be of only 0.50 % of the Loan Amount, subject to a maximum of Rs.10000/- .
8Rate Of Interest
0.25% lesser than the normal schemes.
9Special conditions
1. Joint Declaration by Employer and Employee for Deduction of EMI from salary and Recovery of Loan dues incase the employee resigns/ retires/ gets terminated.
2. Scheme is open for employees of Public Sector Undertakings, Reputed Public/ Private Limited Companies with atleast 50 employees. The Scheme can be made applicable to the employees after a Tie-up arrangement is finalized.
Source: Company documents and brochure
(b) Staff Quarters
LICHFL provides housing finance to reputed listed public limited or
PSUs. for construction or purchase of staff quarters. Under this scheme
minimum amount is Rs. 20 lacs and maximum Rs. Is 7.50 crore. Loan term is
minimum 5 years and maximum 7 years, modes of repayment are Equated
Monthly / Quarterly Instalment. Under this scheme equitable mortgage and any
other security is required.
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LIC Housing Finance Limited
Staff Quarters
1 Loan Amount Min Rs 20 lacs, Max Rs 7.50 crores.2 Purpose Construction/purchase of Staff Quarters.3 Loan to Property Cost 10% of Net Worth and 70% of Project Cost.4 Loan Term 5 to 7 Years 5 Repayment Mode Equated Monthly / Quarterly Instalment 6 Security Equitable Mortgage and any other security.
7 Upfront FeesProcessing Fees: Rs.5000. Admin Fee : 1% of amount sanctioned
8 Rate Of Interest As per current rate
9 Special conditionsThis scheme only for Reputed Listed Public Limited or PSUs.
Source: Company documents and brochure
(c) For Office Premises
LICHFL’s special scheme “Office Premises” to reputed public Ltd.
or PSU’s for Purchase / Repairs / Renovation of office premises. Under this
scheme minimum amount is Rs. 25 lacs and maximum 50% of project cost
subject to 5% of net worth. Maximum loan term is 7 years and mode of
repayment is Equated Monthly Installment (EMI).
Office Premises
1 Loan AmountMin Rs 25 lacs - Maximum 50% of Project cost subject to 5% of Net Worth
2 PurposeLoan for Office Premises / Construction / Purchase / Repairs / Renovation of Office Premises
3Loan to Property Cost
50% of Project cost subject to 5% of Net Worth
4 Loan Term Max. 7 years5 Repayment Mode Equated Monthly Instalment6 Security Equitable Mortgage
7 Upfront FeesProcessing Fees: Rs.5000. Admin Fees : 1% of amount sanctioned
8 Rate Of Interest As per current rate
9 Special conditionsThis scheme only for Reputed Listed Public Limited or PSUs.
Source: Company documents and brochure
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LIC Housing Finance Limited
(d) Line Of Credit to Corporates
The purpose of this scheme is financing house building Schemes of
Co. employees under this scheme loan is provided to reputed listed public Ltd.
or PSUs. The minimum loan amount is 25 lacs and maximum 10% of the net
worth of the project. Maximum loan term is 15 years and repayment mode is
Equated Monthly Instalment (EMI).
Line Of Credit to Corporates1 Loan Amount Min Rs 25 lacs, Max 10% of Net Worth
2 PurposeFinancing House Building Schemes of Co. employees
3 Loan to Property Cost Max 10% of Net Worth4 Loan Term Max. 15 yrs5 Repayment Mode Equated Monthly Instalment
6 SecurityEquitable Mortgage, Guarantee from individual employee, Loan agreement with the company
7 Upfront FeesProcessing Fees: Rs.5000. Admin Fees : 1% of amount sanctioned
8 Rate Of Interest As per current rate
9 Special conditionsThis scheme only for Reputed Listed Public Limited or PSUs.
Source: Company documents and brochure
(e) Loans to Co-Operative Societies
Under this scheme loan is provided to the individual member of
housing Co-operative societies for construction / purchase / extension but on
the basis of applicant which may be Co-operative housing societies of reputed
public Ltd. or PSUs Minimum loan amount is Rs 5 lacs and max. 70% of
property cost, loan term is maximum 15 years. Repayment mode is Equated
Monthly Installment (EMI).
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LIC Housing Finance Limited
1 Loan Amount Min Rs 5 lacs - Max 70% of Property Cost
2 PurposeLoans to individual members of Housing Co-Operative Societies of the Applicant Company
3 Loan to Property Cost Max 70% of Property Cost4 Loan Term Max. 15 yrs5 Repayment Mode Equated Monthly Installment 6 Security Equitable Mortgage and Guarantee from Co.
7 Upfront FeesProcessing Fees: Upto 25 members: Rs 2500/-, and Rs 5000/- for more than 25 members. Admin Fees : 1% of amount sanctioned
8 Rate Of Interest As per current rate
9 Special conditionsThis scheme only for member of housing co-operative society.
Source: Company documents and brochure
(f) Loans to Public Agencies
Under this scheme loan is provided to the statutory bodies in public
housing which construct houses for sale. The minimum loan amount is Rs. 25
lacs and maximum 70% of the property cost. Maximum loan term is 10 years.
Security is equitable mortgage and guarantee from respective state govt.
Repayment mode is principal by quarterly / half yearly Installment, interest to
be paid monthly.
Public Agencies1 Loan Amount 70% of Property Cost2 Purpose Loans for Construction of Housing Projects for Sale3 Loan to Property Cost Max 70% of Property Cost4 Loan Term Max. 10 Years
5 Repayment ModePrincipal by Quarterly / Half yearly Instalment.Interest to be paid monthly
6 SecurityEquitable mortgage and guarantee from respective State Govt.
7 Upfront FeesProcessing Fees: Rs 10,000/-.Admin Fees : 1% of amount sanctioned
8 Rate Of Interest As per current rate
9 Special conditionsThis scheme only for Statutory Bodies in Public Housing.
Source: Company documents and brochure
Builders / Developers :
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LICHFL also provide housing loan to professional developers for
construction of housing projects for sale under this scheme loan is provide for
these projects which are passed by the government and local bodies. Under this
scheme minimum loan amount is Rs. 20 lacs and maximum 50% of the project
cost up to Rs 5 crores. Loan term is minimum 6 month and maximum 2 years,
under this scheme repayment of principal by monthly / quarterly installment
but interest to be paid monthly.
Builders / Developers
1 Loan Amount Min Rs 20 lacs - Max Rs 5 crores2 Purpose Loans for Construction of Housing Projects for sale3 Loan to Property Cost Max 50% of Project cost up to Rs 5 crores4 Loan Term 6 Months to 2 Years
5 Repayment ModePrincipal by Monthly / Quarterly Instalment. Interest to be paid monthly
6 SecurityEquitable Mortgage, Personal guarantee and any other security
7 Upfront FeesProcessing Fees: Rs. 5000/- for appl. up to Rs 1 crore, Rs. 10,000/- for more than Rs 1 crore.Admin Fees : 1% of amount sanctioned
8 Rate Of Interest As per current rate9 Special conditions This scheme only for professional developers.
Source: Company documents and brochure
Others :
(a) Home entity
‘GRIHA VIKAS’
To full fill the other financial requirements of house ownerships
LICHFL launched a special scheme ‘Griha Vikas’ for those who want soan
against mortgage of residential house / flat. Under ‘Griha vikas’ scheme loan
against mortgage of house / flat can be taken for these purposes but age of the
property must not be more than 35 years :
i) Children’s education / marriage
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ii) Foreign Travel
iii) Purchase of another property.
iv) Business expansion
Minimum loan amount is Rs. 2 lacs and maximum loan term is 15 years,
loan repayment mode is Equated Monthly Installments (EMI) Monthly Rest
Basis. ‘Griha Vikas’ scheme is available for both Residential and Non-
residential Indians.
Griha Vikas
1 Loan Amount Min Rs.2,00,000 Max Rs. 1 crore
2 Purpose
Loan against Mortgage of Residential House / Flat.
i) Children’s Education / Marriage
ii) Foreign Travel
iii) Purchase of another Property
iv) Business Expansion.
3 Loan to Property Cost Max 70% of Property Cost
4 Loan Term Maximum 15 years
5 Repayment ModeEquated Monthly Instalments (EMI) - Monthly Rest
Basis
6 Security
1. Equitable / Registered Mortgage of Residential
Property - Age of property not more than 35 years.
2. Demand Promissory Note.
7 Upfront Fees 1.00% of Loan Amount + Service Tax, as applicable
8 Rate Of Interest As per current rate
9 Special conditions
1. Age of property not more than 35 years
2. This scheme is applicable to both Resident &
Non-Resident Indians
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(b) Reverse mortgage loan
LIC Housing Finance Ltd (LICHFL), a leading player in the Indian
housing finance sector, rolls out reverse mortgage loans for senior citizens
above 60 years of age. Loan will be given on single or on joint basis with the
spouse, if the spouse is over 60 years.
The reverse mortgage loan is offered at a fixed interest rate subject to
reset every 5 years. Under the reverse mortgage scheme, senior citizens can
avail the loan either on a monthly payment or a lump sum payment or a
combination of both. The property evaluated for the loan should have at least
20 years of residual life.
Maximum loan balance will be restricted to 90% of the value of the
property and the loan balance will include interest till maturity. Amount of the
loan will take into consideration the property value, age of the borrower, rate of
interest etc.
Loan will become due and payable only when the last surviving
borrower dies or opts to sell the home or permanently moves out of the home to
an institution or to relatives.
Reverse Mortgage loan1 Loan Amount Min Rs.2,00,000
2 Purpose
Loan against Mortgage of Residential House / Flat.
i) Children’s Education / Marriage
ii) Foreign Travel
iii) Purchase of another Property
iv) Business Expansion.
3 Loan to Property Cost Max 90% of Property Cost
4 Loan Term Maximum 15 years
5 Repayment Mode
1. Monthly payments
2. Lump-sum payment.
3. Combination of both
6 Security The RML shall be secured by way of equitable/
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registered
mortgage of residential property
7 Upfront Fees 1% of the loan amount
8 Rate Of Interest (Fixed) subject to reset every 5 years
9 Special conditions
1.Resident Indian Individuals
2. Borrower should be staying at self-acquired and
self owned house /flat against which loan is being
raised, as his permanent primary residence.
3. Identity Proof / Address Proof as per KYC Norms
required.
4. Borrowers should have a clear and transferable title
in their names.
5. The property should be free from any
encumbrances.
6. Residual Life of property Should be at least 20
years
(c) Loans to professionals
‘APNA OFFICE -1’
‘Apna office -1’ is entirely different scheme of LICHFL under this
scheme loan is provided for Purchase/ Extension/ Modification / Renovation of
commercial premises for carrying on own professional practice & purchase of
equipments. Min. loan amount is 5 lacs rupees and loan term is 10 years.
Repayment mode is Equated Monthly Installments (EMI) - Monthly Rest and
security is equitable/ registered mortgage of the premise for which the loan is
raised.
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LIC Housing Finance Limited
Apna Office -1
1 Loan Amount Min Rs. 5,00,000
2 Purpose
Purchase/ Extension/ Modification / Renovation of
Commercial Premises for carrying on own
Professional Practice & Purchase of Equipments.
3 Loan to Property Cost Max 70% of Property Cost
4 Loan Term Maximum 10 years
5 Repayment Mode Equated Monthly Installments (EMI) - Monthly Rest.
6 Security
1. Equitable/ Registered Mortgage of the Premise for
which the Loan is raised.
2. Demand Promissory Note.
3. Personal Guarantee of Directors / Partners, as
Applicable.
4. In case of Companies, Registration of Charges in
R.O.C.
7 Upfront Fees1% of Loan Amount (subject to maximum of
Rs.25,000/- ) + Service Tax, as applicable
8 Rate Of Interest As per current rate
9 Special conditions
Resident Indian Professionals.
Loans can also be Sanctioned to Company or
Partnership firm of such Professional
Addl. Security Hypothecation of Equipment, if
financed
5.6 WORKING PROCESS OF LICHFL
The closing of loan takes place in two steps, processing of loan and
disbursal of loan, which are laid down according to the norms of the LICHFL.
Thus, to estimate how long it would take for closing the loan, it is important to
understand the procedures of processing and disbursing of loan.
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LIC Housing Finance Limited
Loan Processing
Under the loan processing procedure, the borrower is required to submit
application in the prescribed format along with supporting documents for
consideration of the LICHFL. The borrower is expected to apprise himself with
the terms and conditions offered by the LICHFL before submitting the loan
application. After receiving the loan application, the same is perused by the
loan officer and further information/documents for processing of the loan are
obtained. Of late, housing finance institutions are required to ensure
compliance with the ‘Know Your Customer Guidelines’ for the purpose.
LICHFL besides obtaining photograph and identification proof of the borrower,
have also introduced the practice of verifying the address and other details
pertaining to the borrower by deputing their own employees or by engaging
external servicing agencies.
Similarly, property proposed to be purchased by the borrower with the
help of housing loan is visited and verified to confirm that the same is eligible
for finance. It also includes checking that the property under reference is in a
confirming area and it has been developed or is proposed to be developed in
compliance with the sanctioned plan. Housing finance institutions obtain
valuation report on the value of the property under reference through their
officers having technical expertise or empanelled approved valuers.
Similarly, legal verification of the property proposed to be financed is
done by the law officers or empanelled Advocates. LICHFL also has the
practice of verifying the credentials of the borrower by calling on the employer
and the references given by the borrower in his/her loan application.
The intensity of verification and appraisal depends upon the category of
borrower and
nature of property involved. For example, in cases where the dwelling unit or
plot is being purchased from the public agency or a reputed developer whose
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LIC Housing Finance Limited
project is already approved by the housing finance institution, site verification
of the property may not be necessary.
After that company make a personal discussion with borrower during
which borrower can clear all his / her doubts about figures and procedures. In
some cases, borrower may be asked to furnished additional guarantors or
details and company makes a field verification will be done for all the
information provided, especially for-
• Residential Address
• Office address
• Employment verification
• Bank Account verification
• Residence and Office Telephone numbers
• Property Address
• Financial status
Once all the verifications and evaluation reports are available and the
borrower and the property under reference are found to be eligible for
financing, the loan is sanctioned by the LICHFL keeping in view the value of
the property to be purchased, repaying capacity of the borrower and other facts
of the case.
LICHFL also have the practice of granting in-principle sanction based
on preliminary information provided by the borrower. In such cases, the
borrower concludes the purchase transaction after obtaining in-principal
sanction and then gets the formal loan sanctioned to meet the cost of
purchase/construction.
Loan Disbursal:
The disbursal of loan is the process by which a customer receives the
loan sanctioned to him from the respective bank or HFC. The policy for
disbursing the loan varies from one housing finance institution (HFI) to
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another. It starts with the approval of the loan application. After approving the
application company issues offer letter and sanction letter, which is followed
by the disbursal of loan by Cheque.
Offer Letter
The Offer Letter states the loan amount, rate of interest, tenure, mode of
repayment and other details and special conditions. The acceptance letter has to
given by borrower in the given standard format which is provided by the
company, along with any documents as given in the terms and conditions of the
sanction letter. It is only a financial approval of loan proposal. Loan
disbursement would be after when borrower accepted the offer and the
mortgage is legally enforceable and technically clear.
Submission of Legal Documents
Once borrower accepted the offer, he / she will be required to handover
the original documents of the property so that it can be kept as security till the
loan is fully repaid. Further documents required as per conditions of the loan
like collateral security also needs to be submitted at this stage.
Signing of Agreement
The agreement & other documents needs to be signed according to due
procedure. Disbursal also depends on the time taken by the customer in
depositing all the important documents and in completing various formalities.
As soon as all documents are submitted, the procedure for loan disbursement
begins.
Disbursement of loan is generally made by the LICHFL by means of
'Account Payee' cheque drawn in favor of the seller, in the cases of purchase of
plot, ready-built house or flat. In the case of a housing loan for construction of
house or flat, loan disbursement is generally made in installments,
commensurate with the progress of construction. Varied practices are in vogue
for verifying construction progress. LICHFL depute their employees/
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representatives for site-verification, but some time it insist on submission of
certificate from a qualified architect or engineer.
Before sanctioning and disbursement of loan, LICHFL also verify the
submitted documents, application, title of the property, verification of
borrower’s credentials and compliance with “Know Your Customer”
guidelines. Besides, LICHFL also have the right to with hold the disbursement
of loan even after approval, if conditions attached to sanction are not complied
by the borrower.
Required document to obtain Housing loan:
Common requirements for all applicants.
(a) Application form duly filled in.
(b) Copy of sanctioned plan and sanction letter.
(c) Copy of NA permission/ULC clearance, wherever applicable.
(d) One guarantor form and his/her salary certificate in company
format. If guarantor is in business or profession, a copy of his
/her latest IT returns / assessment order.
(e) Bank Pass-book or statements for the last two years.
(f) Power of Attorney, wherever applicable
Additional Requirements - For salaried persons
(a) Employer's salary certificate in company format/and latest salary
slip.
(b) Identity card of applicant/s.
(c) TDS certificate of applicant/s.
(d) PF/ESIS slip of applicant/s.
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Additional Requirements -For Businessmen / Self-employed
(a) Three years' income tax returns/assessment orders alongwith
computation of income and statements of accounts certified by
C.A.
Property Documents - In case of purchase from builder
(a) Copy of Agreement for sale.
(b) Copy of registration receipt.
(c) Copies of receipts of payment already made.
(d) NOC from builders.
Property Documents - In case of direct allotment in a Co-operative
Housing Society
(a) Allotment letter.
(b) Share certificate.
(c) Society registration certificate.
(d) Copy of sale/lease deed in favour of the society.
(e) NOC from society
Property Documents - In case of direct allotment in a Co-operative
Housing Society by Public Agency
(a) Allotment letter, Share certificate, Society Registration
certificate.
(b) Lease Agreement.
(c) Public agency's approved list of members.
(d) NOC from Public Agency in favour of LICHFL.
(e) NOC from society.
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Property Documents - In case of Public Agency's allotment to
individuals
(a) Allotment letter from Public Agency.
(b) Tripartite Agreement between the borrower, LICHFL and the
Public Agency in the prescribed format.
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Flow chart for obtaining Housing loan
Application with full requirements
Application submitted to office with full requirements and processing fee
Preliminary discussion with the applicants
Preliminary inspection of property by office
Sanction and issue loan offer
Acceptance of loan offer terms and conditions and payment of administrative fee
Submission of original title deeds and title verification / investigation
Acceptance of the title
Valuation of the property
Compliance of requirements for disbursement in documentation
Release of loan cheque towards first installment to final instalment
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5.7 ROLE OF ‘LICHFL’ IN THE FIELD OF HOUSING FINANCE
The mission of the company is to provide secured housing finance at
affordable cost, maximizing shareholders value with higher customer
sensitivity. Almost 93% of the company’s loans are to retail customers and the
balance 7% to project developers. The promoter, namely LIC of India, meets
8% of the total fund requirements, whereas 80% is funded by term loans from
banks, bonds and debentures, and the remaining 12% in the form of refinance
from NHB and others.
Sanctions & Disbursals (Rs Bn) LICHF has been steadily growing its
loan book with loan sanctions and disbursal growing at a compounded annual
growth rate (CAGR) of 30% and 20% respectively in the last three financial
years. Company and disbursed an increase of 29% and 26% respectively.
The primary focus of LICHF has been on retail client though it has tie-
up with corporate clients. LIC Housing is increasingly relying on floating rate
borrowing and lending which helps to protect margins in volatile interest rate
scenario. Currently the company maintains its loan book with 93% of the
outstanding individual loans offered at floating rate. The higher exposure to the
floating rate loans has enabled LICHF to maintain its Net interest margin
(NIM) by periodically passing on the effect of changes in its own borrowing
cost
to customers.LIC Housing Finance has been one of the fastest growing
NBFCs over the last five years mainly due to the strong economic growth seen
in India and the rising level of disposable incomes, which has fuelled the
demand for housing loans.
Currently, the Indian housing market is facing an acute demand-supply
mismatch with most of the shortage coming from economically weaker
sections and low-income groups. In order to capture a share of this huge
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LIC Housing Finance Limited
opportunity, the company has stepped up its promotional activities, which has
improved its share in housing loans from 5% to 7%.
Company Name
Equity (Rs
Cr) CMP (Rs) Div, Yld (%)
HDFC 284.45 1255.8 2
LIC HOUSING FINANCE 84.99 188.3 5.3
DEWAN HOUSING FINANCE 60.52 46.3 5.4
GIC HOUSING FINANCE 53.85 30.1 13.3
GRUH FINANCE 34.65 82.55 4.8
Source: calculated from annual reports of HDFC, LICHFL, GICHF, GRUH Finance and NHB
5.8 FINANCIAL CONDITION OF LICHFL
Financial analysis and planning are very general managerial activities.
Managers may attempt to analyse the historical record of a firm in order to
identity factor having a significant influence upon the wealth of the share
holders. But various plans aimed at increasing shareholder’s wealth are also
subject to analysis. For examples, managers may subject plans to change the
firm’s debt equity ratio or to invest in various capital projects to financial
analysis. Financial planning itself pertains to the process of establishing course
of action for the firm to guide future activity. Financial analysis and planning
rely heavily on standard accounting information normally available to the firm.
The balance sheet and income statement of the firm are paramount among the
useful types of accounting information. Financial analysis assists in identifying
the indicating weather a firm has enough cash to meet obligation; a reasonable
accounts receivable collection period; sufficient assets, investment; and an
adequate capital structure all of which are necessary if the firm is to achieve the
goal of maximizing shareholders wealth. Financial analysis can also be used to
assess a firm’s viability as an ongoing enterprise and to determine weather a
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LIC Housing Finance Limited
satisfactory return is being earned for the risk taken. The financial analysis of
LICHFL has been done basically following components:
Profitability position.
Capital structure.
Cost of operation.
Turnover position
Profitability Position:
Profitability is a measure of efficiency and control. Earning of more and
more profit with optimum use of available resources of business is called
profitability. Profitability expresses that efficiency and effectiveness of
business with which the business has been operated. all parties are interested in
profitability of business. Profits also help to pay interest and provide funds to
discharge debts. For the expansion and growth of business necessary funds can
be managed out of business. With the help of profitability ratios, creditors,
banks, and financial institutions can evaluate the interest paying capacity of the
firm. Profitability is the result of higher expenses or lower sales. To see the
profitability, I have seen profit before interest and dividend and tax and return
on capital employed, operating income, profit after tax.
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Table 5.8.1Total Income of LICHFL
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
Income from
operations
4680.08 3455.77 2880.17 2089.4 1547.13 1237.92 1023.34 957.58 977.59 857.84 744.62 656.25 571 494.5 421.2
Other income 188.64 13.39 23.17 75.52 28.43 30.91 26.27 27.79 35.56 23.8 0.93 0.82 0.53 0.29 0.19
Total 4868.72 3469.16 2903.34 2164.92 1575.56 1268.83 1049.61 985.37 1013.2 881.64 745.55 657.07 571.5 494.8 421.2
Growth in Total Income
%
40.34 19.49 34.11 37.41 24.17 20.89 6.52 -2.75 14.92 18.25 13.47 14.97 15.50 17.47 21.59
(Rs. In crores)Source: Computed from Annual Reports
Table (5.8.1) depicts the position of Income of the LICHFL. Income has been divided in to two parts. One is, Income from
Operation and another is other income. Total income in 1996-97 was 421.2 crore. It became 4680.08 in 2010-11. Income from
operations is increasing gradually but in the FY 03-04, operating income decreased from 977.59 to 957.58. Other income also
decreased from 35.56 to 27.79 in FY03-04. Total income shows much fluctuations during the study period. Total income decreased
in only financial year FY03- 04 from 1013.2 to 985.37 and rest of the period total income increased gradually.
The highest growth rate in total income was 40.34% in FY10-11 and lowest -2.74% in FY03-04. Since 2004-05 growth rate
had been increasing except FY 2008-09 and 20109-10. FY 1997-98, 98-99, 99-00, 02-03 and 03-04 show low growth rate over the
previous year.
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Table 5.8.2
Profit before Interest, Depreciation and Tax (%)(Rs. In crores)
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
Total Income 4868.72 3469.16 2903.34 2164.92 1575.56 1268.83 1049.61 985.37 1013.15 881.64 745.55 657.07 571.53 494.79 421.19
2.other Expenses 470.84 214.0 154.51 154.52 116.5 120.85 147.36 183.94 122.03 69.32 36.69 27.86 24.86 23.75 23.76
Profit before interest depreciation and tax (1-2) 4397.88 3255.2 2748.83 2010.4 1459.1 1148 902.25 801.43 891.12 812.32 708.86 629.21 546.67 471.04 397.43
Profit before interest, depreciation and tax (%) (comparison to Income)
90.3293 93.831 94.6782 92.863 92.606 90.475 85.9605 81.3329 87.9554 92.1374 95.079 95.76 95.6503 95.2 94.359
Rate of Growth in Profit before Interest, depreciation and tax (%)
35.10 28.41 36.73 37.79 27.10 27.24 12.58 -10.06 9.70 14.60 12.66 15.10 16.06 18.52 26.86
Source: Computed from Annual Reports
Over all if we analyse table (5.8.2) we find the position of Profit before Interest, depreciation and tax (PBIDT) it was highest
in 2010-11 while it has decreased during 2003-04 but its previous year and rest of the period it increased. During the year 1996-97
PBIDT was 397.4 crore and in 2010-11 it was4397.88crore.
In terms of percentage highest PBIDT was 95.76 % in 1999-00 and lowest was 81.33% in 2003-04. Remaining time it was
around 92%.
If we see the growth rate of PBIDT then its highest rate was 37.79% in 2007-08 and lowest rate was -10.06% in 2003-04. Its
trend during the period of 1996-2004 was decreasing but after 2004 its trend has changed and now it is regular. LICHFL made a great
recovery in PBIDT.
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Table 5.8.3
Rate of Growth in Gross profit (after interest but before depreciation and tax) %(Rs. In crores)
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
1.Total Income 4868.72 3469.16 2903.34 2164.92 1575.56 1268.8 1049.61 985.37 1013.15 881.64 745.55 657.07 571.53 494.79 421.19
2.Interest Expenses 3097.71 2395.73 2016.61 1474.41 1101.46 854.61 677.12 610.48 658.8 627.79 550.88 486.91 415.04 356.85 305
3.Total Expenses (Before depreciation and tax) 3568.5 2609.7 2171.1 1628.93 1217.96 1002.6 842.01 794.42 780.91 697.14 587.57 514.77 439.9 380.6 328.76
Gross Profit (after Interest but before Depreciation and taxation)(1-3)
1300.22 859.46 732.24 535.99 357.6 266.21 207.6 190.95 232.24 184.5 157.98 142.3 131.63 114.19 92.43
Rate of Growth in Gross Profit (after Interest but before depreciation and tax) (%)
51.28 17.37 36.61 49.89 34.33 28.23 8.72 -17.78 25.88 16.79 11.02 8.11 15.27 23.54
Source: Computed from Annual Reports
Table (5.8.3) shows the growth rate in gross profit of the company during the study period. Gross profit of the company was
92.45 crores in 1996-97 which increased and became 1300.22 crores in 2010-11.It has smooth growth rate over the study period
except 2003-04 and 2009-10.
In terms of percentage negative growth rate was -17.79% during 2003-04 but after that company made a great recovery and
next year growth rate became 8.72%. Growth rate of Gross profit was 23.52% in 1997-98 which increased and became 28.33% in 05-
06, 34.33 in 2006-07 and 49.89% in 2007-08. After this period it decreased upto 17.37 for the FY 2009-10 but in FY 10-11.
Company scored growth rate more than 50%.
189
LIC Housing Finance Limited
Rate of Growth in Profit before Interest, depreciation and tax (%)
2010
-11
2009
-10
2008
-09
2007
-08
2006
-07
2005
-06
2004
-05
2003
-04
2002
-03
2001
-02
2000
-01
1999
-00
1998
-99
1997
-98
1996
-97
-20
-10
0
10
20
30
40 35.1
28.41
36.7337.79
27.1 27.24
12.58
-10.06
9.7
14.6 12.66 15.1 16.06
18.52
26.86
Series1
Fig. No. 5.1
190
LIC Housing Finance Limited
Table 5.8.4Rate of Growth in Net Profit (%)
(Rs. In crores)Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-
05 2003-04 2002-03 2001-02 2000-01 1999-00
1998-99 1997-98 1996-97
1.Gross Profit (after Interest but before Depreciation and
taxation)1300.22 859.46 732.24 535.99 357.6 266.21 207.6 190.95 232.29 184.53 157.98 142.3 131.6 114.2 92.45
2. Depreciation 6.24 6.37 4.99 3.69 3.82 4.46 3.30 2.71 1.66 1.32 1.16 - - - -3. TAX 319.67 249.09 194.8 145.11 74.64 53.17 60.58 59.77 59.18 36.5 35.3 - - - -
Net Profit 1-(2+3) 974.31 604 532.45 387.19 279.14 208.58 143.7 128.47 171.45 146.71 121.52 109.1 101.1 87.73 63.38Rate of Growth in Net
profit % 61.31 13.44 37.52 38.71 33.83 45.13 11.87 -25.07 16.86 20.73 11.40 7.89 15.24 38.42 22.69Source: Computed from Annual Reports
When depreciation and tax, deducted from gross profit, net profit remains. Net profit shows the company’s real picture.
LICHFL’s Net profit has been shown in table (5.8.4) it was 63.38 crores in 1996-97 and 171.45 crores was in 2002-03 but next year it
decreased and reached 128.47 crores. LIC HFL made effort and it became 974.31 crore in 2010-11. During the year 2003-04 rate of
growth in Net profit was -25.07% apart from this remaining period growth rate was in positive figures with the highest 61.31% for
2010-11 and lowest positive growth rate was 7.85% during 1999-00. Depreciation of the company was highest 6.37% in 2009-10 and
lowest was 1.16% in 2000-01. Tax expenses of the company are increasing it was 35.3 crores in 2000-01 and 319.67 crores in2010-11.
Overall the net profit of the company is increasing and financial condition of the company is solid.
Capital structure
Normally the ordinary shareholders, debenture holders, financial institutions and other long-term creditors take interest in
capital structure position of the company and equity capital which are the most important aspects in the capital structure. Below table
exhibits the exact picture of equity paid-up capital of the company.
191
LIC Housing Finance Limited
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
-30
-20
-10
0
10
20
30
40
50
60
7061.31
13.44
37.52 38.7133.83
45.13
11.87
-25.07
16.8620.73
11.47.89
15.24
38.42
22.69
Rate of Growth in Net profit %
Rate of Growth in Net profit %
Fig. No. 5.2
192
LIC Housing Finance Limited
Table 5.8.5
Equity Paid –up capital(Rs. In crores)
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
Equity Paid up capital 94.99 94.99 84.99 84.99 84.99 84.99 84.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99
Source: Computed from Annual Reports
Above table (5.8.5) has been prepared to analyse the Equity paid-up capital of the company. It was 94.99 crores for the year 2009-10
and 2010-11. It was 84.99 crore during FY 03-04 to 07-08 and 74.99 crore from 1996-97 to 2003-04.
Table 5.8.6
Net worth (Total Shareholder Fund) Share capital + Reserves and Surplus(Rs. In crores)
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
Equity Paid up capital 94.99 94.99 84.99 84.99 84.99 84.99 84.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99
Reserve and Surplus 4074.11 3292.68 2149.1 1746.66 1458.84 1260.51 1110.05 886.33 786.12 663.65 565.13 493.95 410.72 334.15 269.15
Total 4169.1 3387.67 2234.09 1831.65 1543.83 1345.5 1195.04 961.32 861.11 738.64 640.12 568.94 485.71 409.14 344.14
Source: Computed from Annual Reports
193
LIC Housing Finance Limited
Overall analysis of the data in table (5.8.6) shows that Net worth was increasing every year during the study period. If we
compare it with the equity capital figures we find that net worth figure are more-sound and indicate towards the sound Reserves and
Surplus position of the company. Reserves and surplus of the company were increasing every year it was 269.15 crores in 1996-97,
565.13 crores in 2000-01, 1110.1 crores in 2004-05 and 4074.11 crores in 2010-11. The total Net worth of the company was also
increasing year by year it was 344.14 crores in 1996-97, 640.12 crores in 2000-01, 1195.1 crores in 2004-05 and 4169.1 crores in
2010-11.
Table 5.8.7
Rate of Growth in Net worth (%)(Rs. In crores)
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
Equity Paid up capital 94.99 94.99 84.99 84.99 84.99 84.99 84.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99
Reserve and Surplus 4074.11 3292.68 2149.1 1746.66 1458.84 1260.51 1110.05 886.33 786.12 663.65 565.13 493.95 410.72 334.15 269.15
Total 4169.1 3387.67 2234.09 1831.65 1543.83 1345.5 1195.04 961.32 861.11 738.64 640.12 568.94 485.71 409.14 344.14
Rate of Growth in Net Worth (%) 23.07 51.64 21.97 18.64 14.74 12.59 24.31 11.64 16.58 15.39 12.51 17.14 18.71 18.89 14.29
Source: Computed from Annual Reports
Table (5.8.7) represents the clear picture of rate of growth in Net worth during the period of 1996-2011. LICHFL has steady
growth rate between 11.64 % and 51.64% over the period. In 1996-97 growth rate was 14.29% but in 2003-04 it decreased upto
11.64% after that company make a good progress and it touched the highest figure 51.64% in 2009-10 and growth rate was 23.07% in
2010-11. In last three financial years company’s Net worth growth rate is not consistent.
194
LIC Housing Finance Limited
2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
23.07
51.64
21.97
18.64
14.7412.59
24.31
11.64
16.58 15.3912.51
17.1418.71 18.89
14.29
Rate of Growth in Net Worth (%)Rate of Growth in Net Worth (%)
Fig No. 5.3
195
LIC Housing Finance Limited
Table 5.8.8
Share Holding pattern Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-
981996-
97
Percentage of Promoter company
(LIC of India) shareholding
36.54 36.54 36.54 40.5 40.78 39.08 34.69 38.5 38.5 38.43 38.43 38.43 _ _ _
Percentage of Public shareholding 63.46 63.46 63.46 59.5 59.22 60.92 65.31 61.5 61.5 61.57 61.57 61.57 _ _ _
Total 100 100 100 100 100 100 100 100 100 100 100 100 _ _ _
Source: Computed from Annual Reports
Table (5.8.8) shows the share holding pattern of the company, Life Insurance Corporation of India (LIC of India) is a promoter
company of LICHFL, it holds nearby 37% share and its part is decreasing. Part of the promoter company in shareholding was 38.43%
in 1999-00 which remained stable up to next three years but in 2004-05 part of the promoter company decreased from 38.5% to
34.69%. In next financial years promoter company again increased own part and it was stable at 36.54% since 2008-09. Public share
holding in company is near by 64% which is stable since last three years.
196
LIC Housing Finance Limited
Table 5.8.9
Earning Per share(Rs. In Rupees)
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-2000 1998-99 1997-98 1996-97
Basic and Diluted
Earning per Share (Face value of
rs. 10) (Rs.) *
102.65 73.46 62.59 45.59 32.87 24.56 17.84 22.35 23.88 19.66 16.16 _ _ _ _
Source: Computed from Annual Reports* The Earnings Per Share have been computed in accordance with the Accounting Standard on 'Earning Per Share' (AS 20) issued by the 'Institute of Chartered Accountants of India'.
LICHFL is a second largest company in the field of housing finance its financial position is strong and management is quite
good so company is performing in a good way in share market. Its Earning per share was positive during the whole study period.
Earning per share was16.16 rupees in 2000-01, 23.88 rupees in 2002-03 but in 2004-05 due to recession its earning decreased
upto17.84 rupees. In next years company made good performance and in 2010-11 gained per share earning 102.65rupees which is the
highest rate among the study period.
197
LIC Housing Finance Limited
Table 5.8.10
Operating and Administrative Expenses(Rs. In crores)
Particular2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98 1996-97
Operating and Administrative charges 470.84 214.0 154.51 154.5
2 116.5 120.85 147.36 183.94 122.03 69.32 36.69 27.86 24.86 23.75 23.76
Source: Computed from Annual Reports
Table (5.8.10) indicates the position of Operating expenses of LICHFL which indicates company’s operational efficiency and
cost effectiveness. Due to increasing business and competition, company’s operating cost is increasing. 23.76 crore rupees
expenditure was in 1996-97 after that it increased gradually; it was 183.94 crore for the year 2003-04 thereafter company made good
cost management, controlled its fast growing expenditures and slow downed operating and administrative expense result company
decreased expenses up to116.5 crores in 2006-07 which extended upto 470.84 crore rupees in 2010-11. If we see overall position of
operation and administrative expenses it shows the upward trend.
198
LIC Housing Finance Limited
Table 5.8.11Operating, Administrative and interest charges (Expenditure)
(Rs. In crores)Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97Operating and Administrative charges 470.84 214.0 154.51 154.52 116.5 120.85 147.36 183.94 122.03 69.32 36.69 27.86 24.86 23.75 23.76
Interest Expenses 3097.7 2395.71 2016.6 1474.41 1101.46 854.61 677.12 610.48 658.8 627.79 550.88 486.91 415.04 356.85 305
Total Expenses before depreciation and tax 3568.54 2609.7 2171.11 1628.93 1217.96 1002.62 842.01 794.42 780.91 697.14 587.57 514.77 439.9 380.6 328.76
Rate of growth in operating, administrative and interest charges (%)
36.74 20.2 33.29 33.73 21.48 19.07 5.99 1.73 12.02 18.65 14.14 17.01 15.58 15.77
Source: Computed from Annual Reports
To know the relation between ‘Growth rate in total income’ and ‘Growth rate in expenditure’ Karl Pearson’s correlation
coefficient test has been applied as a statistical tool and found that calculated value of ‘r’ is +0.987 which clearly indicate that there is
a positive high degree of correlation between income and expenditure of the company means as the income of the increase or
decrease in respect expenditure also increase or decrease.
Table (5.8.11) exhibits the overall position of interest and financial charges of LICHFL during the period of 1996 to 2011.
Data depicts that interest and financial charges in 2010-11were ten times more than 1996 just in period of 14 years, it was increasing
every year. Table clearly indicates the upward trend in the operating expenses, even interest rate is decreasing due to interest war
among the housing finance agencies since last ten years. LICHFL interest charges increased more than10 times during the study
period it was 305 crores rupees in 1996-97 and became 3097.7 crore rupees for the year 2010-11. Growth rate of expenses has
become more than double during the period. The lowest growth rate in expenses over the previous year was 1.73% in 2003-04 and
the highest 36.74% in 2010-11. Overall operating, administrative and interest charges shows the upward trend.
199
LIC Housing Finance Limited
Table 5.8.12
Rate of Growth in Sales (%)(Rs. In crores)
Particular 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97
Total Income 4868.72 3469.16 2903.34 2164.92 1575.56 1268.83 1049.61 985.37 1013.15 881.64 745.55 657.07 571.53 494.79 421.19
Growth in Total Sales % 40.34 19.49 34.11 37.41 24.17 20.89 6.52 -2.74 14.92 18.25 15.93 14.98 15.51 17.47 21.59Source: Computed from Annual Reports
Turnover position of the company is increasing gradually total sales was 421.19 crore rupees in 1996-97 that has become
4868.72 crore rupees in 2010-11. It shows more than 11 times increment. In term of percentage growth rate was negative only in
2003-04 and lowest positive growth rate was 6.52 % in 2004-05. The highest growth rate in sales over the previous year was 40.34%
for the year 2010-11. Overall performance of company in sales shows the upward trend. Although competition in the housing finance
sector is increasing day by day thereafter LICHFL gained good progress in total sales.
200
LIC Housing Finance Limited
2010
-11
2009
-10
2008
-09
2007
-08
2006
-07
2005
-06
2004
-05
2003
-04
2002
-03
2001
-02
2000
-01
1999
-00
1998
-99
1997
-98
1996
-97
-5
0
5
10
15
20
25
30
35
40
4540.34
19.49
34.1137.41
24.1720.89
6.52
14.9218.25
15.93 14.98 15.5117.47
21.59
Growth in Total Sales %
Fig No. 5.4
201
LIC Housing Finance Limited
5.9 LICHFL IN GWALIOR REGION :
Gwalior is a central hub of commerce and education. In the search of job
or to establish business many person migrate from rural areas and also willing
of reside in the city it increase the requirement of houses. To fulfill this
requirement LICHFL established its Area office in FY 1994-95 in Gwalior
which is situated at City Centre in ‘Prakash bulding’. Office is furnished with
furniture and computer equipments. It is providing loan to the needy person of
the Gwalior region comprises Gwalior, Datia, Dabra, Bhind, Morena, Sheopur,
Guna and Shibpuri since establishment. There are four permanent and 10
contract basis employee are working in the branch. Back office is in Bhopal
and regional office is in Lucknow.
Sanctioning of loan
Branch office does not have the power to sanction the loan. Loan
application and case file is prepared by the branch, after completing all
formalities case file in hard copy in original has been sent to the Back office to
sanction the loan. This procedure takes 10-12 days depends on loan amount
and title of the property thereafter receiving sanction permission, Areas office
disburses loan by account payee cheque. Disbursement process is done by the
Area office according to the company rules.
Sanctions and disbursements of the Area office, Gwalior
During interview with the officials of LICHFL, Area office, Gwalior, it
has been found that nearby 16.5% of total loan application rejected because of
many reasons. The first and main reason was location of the property, if it is
found that property is situated in remote areas or undeveloped areas company
does not accept it as mortgage. Second reason was weak repayment capacity of
the borrower, Third one was lack of document, if borrower does not provide all
the required document with in time limit company rejects the loan application.
Other reasons were loan amount and disputed land titles etc.
202
LIC Housing Finance Limited
Table 5.9.1Sanctioned and Disbursed loan
S.No. Year Sanctioned loan Disbursed loan % loan disbursed to sanctioned
2 2006-07 25.5 20.9 81.963 2007-08 37.6 32.1 85.374 2008-09 45.3 39.1 86.315 2009-10 54.8 46.5 84.856 2010-11 62.8 55 87.58
Source: Questionnaire and interview
Table5.9.1 discloses that branch’s sanctions and disbursed loans are
increasing year by year. Sanctioned loan was 25.5 crore rupess in 2006-07
which became 62.8 crore rupees in 2010-11. Disbursed loans are also shows
the same trend which increased 20.9 crore rupees to 55 crore rupees during
2006-2011. Percent of disbursed to sanctions were more than 82% just close to
company’s average 86.41%.
Status of loan application
Table 5.9.2Status of loan application
S. No. Year
Received application
(No)
Accepted application
(No)
Percentage of Accepted application
Reject application
(No)
Percentage of rejected application
1 2005-06 525 418 79.62 107 20.382 2006-07 655 535 81.68 120 18.323 2007-08 742 602 81.13 140 18.874 2008-09 780 657 84.23 123 15.775 2009-10 890 753 84.61 137 15.396 2010-11 927 788 85.01 139 14.99
Source: Questionnaire and interview
Table 5.9.1 shows the status of loan application at Gwalior branch. In
2005-06, 525 application received out of them 418 had been accepted and
remain 107 rejected. In term of percent 80% accepted. In 2006-07 total
received application were 655 out of them 535 i.e. 81.68% accepted. In 2010-
11 total received application were 927 out of them 139 rejected by company.
Acceptance percent is near by 82.5%.
203
LIC Housing Finance Limited
204
i Mohsur, LIC and Housing, Vora and Co., publishers, Pvt. Ltd. Ombay-2ii K. V. Verghese, Housing Problem in India, Economic and social aspects, Eureka
Publications, New Delhi.iii LIC Annual report 2007-08iv www.lic.co.inv LIC Annual report 2008-09
148-189,191,193-194,196-200,202-204
190,192,195,201