Synopsis (Hdfc) - Copy

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CONTENTSS.NO. PARTICULARS PAGE. NO.

1. Background

1.1 Introduction 3

1.2 Industry Profile 5-6

2. Statement of te Pro!"em

2.1 Objectives of the Study 7

2.2 Imort!nce of the study 7

2.3 Scoe of the Study "

2.# $imit!tions of the Study "

#. Re$earc %etodo"og& %-1&

'. L(terature Re)(e* 11-12

+. Ca,ter Out"(ne 13-15

Conc"u$(on 16

Sugge$t(on$ 17

B(!"(ogra,& 1"

1. BAC-GROUN1



1.1 Introduct(on to /ome Loan

The roof over one’s head and ground beneath one’s feet count as the bare

necessities of life. There’s nothing quite like owing a home, however humble to give

that warm and glowing feeling. But when one buys a home, one has much more

than a feel good purchase in mind! t’s also a crucial investment decision, perhaps

the biggest spending decision of one’s life. There are ample opportunities today for

young salaried investors to plan their moves early and buy a house at right time

and at right price. n the process, not only do they ful"ll that cherished dream of

owning a house, but also put themselves on the path to acquiring property thatwould meet the needs and aspirations of their growing family, even as it leads to

wealth creation. #very individual aspires to own a home. But many either spend a

lifetime saving to purchase a house or e$haust money on monthly house rents.

HDFC BANK

%&'( (Home Development Finance Corporation) %ome )oan, ndia have been

serving the people for around * decades and providing various housing loan

according to their varied needs at attractive and reasonable interest rates. +wing to

their wide network of "nancing, %&'( %ome )oans provide services at doorstep and

helps you "nd a home as per your requirements.

ICICI HOME FINANACE COMPANY LTD

ICICI Ban! is an ndian multinational banking and "nancial services company

headquartered in adodara. -s of /10 it is the second largest bank in ndia in

terms of assets and market capitaliation. t o2ers a wide range of banking products

and "nancial services for corporate and retail customers through a variety of

delivery channels and specialied subsidiaries in the areas of investment

banking, life, nonlife insurance, venture capital and asset management. The Bank

has a network of *,3// branches and 11,14 -T5s in ndia, and has a presence in

16 countries.



(( Bank is one of the Big 'our banks of ndia, along with 7tate Bank of

ndia, 8un9ab :ational Bank and %&'(. The bank has subsidiaries in the ;nited

<ingdom, =ussia, and (anada> branches in ;nited 7tates, 7ingapore, Bahrain, %ong

<ong, 7ri )anka, ?atar and &ubai nternational 'inance (entre> and representative

o@ces in ;nited -rab #mirates, (hina, 7outh -frica, Bangladesh, Thailand, 5alaysia

and ndonesia. The companyAs ;< subsidiary has also established branches in

Belgium and ermany.

n 5arch /1*, +peration =ed 7pider showed highranking o@cials and some

employees of (( Bank involved in money laundering. -fter a government inquiry,

(( Bank suspended 13 employees and faced penalties from the =eserve Bank of

ndia in relation to the activity.

P"N#AB NATIONAL BANK

8:B has over 0C// branches and o@ces bringing the 8un9ab :ational Bank to your

doorstep. -round 0// o@ces come under the network of (entralied Banking

7olution or (B7. - need for centralied banking system prompted 8:B to go

computeried and what followed was the establishment of (B7 in 8un9ab :ational

Bank branches in all the leading cities like &elhi, 8une, (hennai, 5umbai,

-hmadabad, (handigarh, urgaon, %yderabad, Dalandhar, <olkata, )udhiana, :odal

and Bangalore. nternet Banking 7ervices are provided to all customers in the (B7

branches. - branch and -T5 locator is also available on the o@cial website of

8un9ab :ational Bank. 'or an overview of the annual report or the bank pro"le, the

site can be resourceful. The website also provides info on the careers and

recruitments at 8:B and the e$am results. The careers at nationalied banks like

8:B are the most sought after one and candidates are selected on the basis of their

e$am result. 8:B topped the Best 8aying (ommercial Bank category with an overall

rating of 3E.0CF as evaluated by the 777 =etirement, &eath G 'uneral Bene"ts

8rogram.

$TATE BANK OF INDIA

7tate Bank of ndia H7BI is ndiaAs largest commercial bank. 7B has a vast domestic

network of over 6/// branches Happro$imately 10F of all bank branchesI and

*



commands one"fth of deposits and loans of all scheduled commercial banks in

ndia. The 7tate Bank roup includes a network of eight banking subsidiaries and

several nonbanking subsidiaries o2ering merchant banking services, fund

management, factoring services, primary dealership in government securities,

credit cards and insurance. The eight banking subsidiaries areJ 7tate Bank of

Bikaner and Daipur H7BBDI,7tate Bank of %yderabad H7B%I.7tate Bank of ndia

H7BI,7tate Bank of 1* ndore H7B=I,7tate Bank of 5ysore H7B5I,7tate Bank of

8atiala H7B8I,7tate Bank of 7aurashtra H7B7I and 7tate Bank of Travancore H7BTI.

Today, 7tate Bank of ndia H7BI has spread its arms around the world and has a

network of branches spanning all time ones. 7BAs nternational Banking roup

delivers the full range of crossborder "nance solutions through its four wings the

&omestic division, the 'oreign +@ces division, the 'oreign &epartment and the

nternational 7ervices division.

1.2 Indu$tr& Prof("e

Indi!n '!n(in) sector is domin!ted by Public Sector '!n(s *PS's+ ,hich !ccounted for 72.6

of tot!l !dv!nces for !ll the Scheduled ommerci!l '!n(s *S's+ !s on 31st /!rch 2&15. PS's

h!ve r!idly e0!nded their foot rints !fter n!tion!li!tion of b!n(s in Indi! in 1%6% !nd further

in 1%"&. lthou)h there is ! restrictive entrye0!nsion for riv!te !nd forei)n b!n(s in Indi!4

these b!n(s h!ve incre!sed their resence !nd business over l!st 5 ye!rs. Peculi!r ch!r!cteristic

of Indi!n b!n(s unli(e their ,estern counter!rts such !s hi)h sh!re of household s!vin)s in

deosits *57.# of tot!l deosits+4 !deu!te c!it!li!tion4 stricter re)ul!tions !nd lo,er lever!)e

m!(es them less rone to fin!nci!l crisis4 !s ,!s seen in the ,estern ,orld in mid 11.

S's in Indi! h!ve sho,n !n imressive )ro,th from &" to the mid of 12. 8ot!l deosits4

!dv!nces !nd net rofit )re, !t 9: of 1%.64 27.# !nd 2&.2 resectively from &5 to

11. '!n(in) sector recorded credit )ro,th of 33.3 in &5 ,hich ,!s hi)hest in l!st 2 !nd

h!lf dec!des !nd credit )ro,th in e0cess of 3& for three consecutive ye!rs from &% to 124

,hich is best in the b!n(in) industry so f!r. Incre!se in economic !ctivity !nd robust rim!ry !nd

second!ry m!r(ets durin) this eriod h!ve heled the b!n(s to )!rner l!r)er incre!se in their fee

b!sed incomes. si)nific!nt imrovement in recoverin) the ;Ps4 lo,est ever incre!se in ne,

0



;Ps combined ,ith ! sh!r incre!se in )ross !dv!nces for S's tr!nsl!ted into the best !sset

u!lity r!tio for b!n(in) sector in l!st t,o dec!des. 9ross ;Ps to )ross !dv!nces r!tio for S's

decre!sed from the hi)h of 1# in 2&&6 to 2.3 in 12.

<ithin the )rou of b!n(s4 forei)n !nd riv!te sector b!n(s )re, !t hi)her r!te th!n the industry

from &6 to 12 rim!rily bec!use of lo,er b!se effect !nd r!id e0!nsion undert!(en by

these b!n(s. In 124 over!ll )ro,th in credit !nd deosits ,!s led by PS's. =o,ever4 )ro,th

of riv!te !nd forei)n b!n(s ,!s si)nific!ntly lo,er in 12 due to their hi)h e0osure to

stressed sectors !nd roblem !t !rent level for forei)n b!n(s. >nsecured b!n( credit h!s risen

over the ye!rs !nd stood !t 23.3 of b!n( credit in &" !s com!red to just 1&.% in 2&&".

$endin) to sensitive sector h!s !lso )ro,n !t 9: of #6.1 from &% to 12. In the

b!c(dro of the economic do,nturn4 :? :ese!rch feels th!t the e0cellent erform!nce seenin l!st five ye!rs ended 11 ,ill be difficult to ree!t in comin) ye!rs.

(-=# =esearch e$pects that with the downturn in the economy, credit and deposit

growth will moderate in coming years. (redit growth will be led by spending on the

infrastructure while retail credit will show a moderate growth. 5argin pressures due

to lag e2ect of rate cuts between interest rate on deposits and advances, lower

treasury gains and core fee income and increasing in provisions for :8-s is likely to

put pressure in the bottom line of the banks. oing forward, 87Bs’ which are close

to the required lower level of government stake and have concentrated presence in

particular region are likely to consider its merger with other 87B as an important

option if they want to sustain the growth seen in past. Kith the downturn in the

economy, (-=# =esearch e$pects that credit and deposit growth will moderate in

coming years. (redit growth will be led by spending on the infrastructure while retail

credit will show a moderate growth. 5argin pressures due to lag e2ect of rate cuts

between interest rate on deposits and advances, lower treasury gains and core fee

income and increasing in provisions for :8-s is likely to put pressure in the bottom

line of the banks.

C



2. STATE%ENT O0 T/E PROBLE%

2.1 O!ect()e$ of te Stud&

To study the main ob9ective is to "nd out the tari2 changes charges by other banks

in comparison to %&'( bank.

LThe overall demand in the residential sector as grown by about E3F in past few

months as compared to the same period last yearM

To study the variety of loan as compared to other banks, as they should promote

their bank loan in agriculture and rural sector with minimum documentation.

There should be easy repayment schedule which would help the %&'( bank to

make their recognie itself in "nancial.

2.2 Im,ortance of te Stud&

4



• The study is to help %&'( to know where it lack in loans, performance and

other facilities as compare to other banks and "gure out the problem faced

by the customer while transaction.

• (omparison of loan schemes with four banks %&'(, ((, 7B and 8:B.

• To promote their other facilities or e$tra service provided by %&'( Bank

• To reduce the documentation while opening -Nc or while loan disbursement

2.# Sco,e of te Stud&

1. SCOPE O0 T/E STU3

Scoe of the study c!n be me!sured in t,o terms @ ----

Geogra,(ca" Sco,e 4 8his imlies the !re! or re)ion from ,here ,e !re )oin) to dr!, our

s!mle i.e. !re! ,here ,e )oin) to conduct our rese!rch.

8he study ,!s constr!ined to the NCR reg(on. 8his re)ion ,!s chosen bec!use of the

convenience of loc!tion.

• T(me Sco,e 4 8his imlies the time ,e h!ve !t our disos!l to conduct our study. 8he

time limit secified is !ro0im!tely 5 months.

• Secondar& data t(me 4 Second!ry d!t! h!s been collected from v!rious sources. 8hey

!re @ -

rticles !re collected from ne,s!ers li(e ?conomics 8imes4 8imes of Indi!. 8he

!rticles collected !re l!test so th!t they !re relev!nt.

:elev!nt !rticles from Aourn!ls li(e 'usiness 8od!y4 'usiness Indi!4 'usiness <orld4 !nd

Indi! 8od!y. 8he !rticles collected !re from journ!ls ublished !fter 2&&& bec!use of !ucity

of resources. 8hese !rticles ,ere chosen !s they ,ere the most relev!nt for the study bein)

conducted.

:elev!nt !rticles !nd other d!t! from internet.

E



2.' L(m(tat(on$ of te Stud&

8he uestionn!ire ,!s filled by the '!n( emloyees ,ho bec!use of cert!in !rehensions mi)ht

not h!ve )iven correct det!ils. or inst!nce if the customer coml!ined of the indifferent !ttitudeof the emloyees !t the b!n( the emloyee but obvious ,ill not tell this.

recent e0erience * )oodb!d + mi)ht influence4 the ercetion of the resondents !nd induce !

bi!s in their r!tin)s

?0!mle@ ! recent b!d e0erience ,ith the emloyee mi)ht ch!n)e the benefici!riesB

ercetion to,!rds the or)!ni!tion

• 8he s!mle sie selected *b!n(s !nd customers+ mi)ht not deict ! true icture of the oul!tion

• 8he e0tent of the roject ,!s restricted to ;: only4 ,hich mi)ht not reresent ! true icture

• It is difficult to )et !ointments from b!n(s senior e0ecutives

• '!n( emloyees m!y )ive bi!sed !ns,ers ,hich m!y le!d to incorrect results

• 8ime !v!il!ble for the comletion of the roject ,!s limited

• Survey ,!s mostly b!sed on hum!n ercetions rel!ted to v!rious f!ctors4 ,hich m!y le!d to !subjective result.

#. RESEARC/ %ET/OOLOG3

rese!rch methodolo)y defines ,h!t the !ctivity of rese!rch is4 ho, to roceed4 ho, to me!sure

ro)ress4 !nd ,h!t constitutes success.

=esearch methodology is an important part of every pro9ect. Because it helps in

knowing how to select the representative sample from the world or the general

population, the right research tools and techniques to complete the research.

The study of the consumer behavior is important because he is the king. The

research process is based upon survey method, so in order we go to service

provider and services user which is the customers.

The research involves the following stepsJ

•

De%ne t&e pro'lem an reearc& o'*ective+ The problem and ob9ectiveis to assess the services o2ered by the various service providers and what

the customer wants.

Developin, t&e reearc& plan+ The second stage of the research

methodology is to develop a research plan. The research plan designed to

3



take the decision on the data sources, research approaches, research

instruments, sampling plan and contact methods.

$-rve. reearc&+ t was a descriptive research.

/eearc& intr-ment+ The use of an e2ective research instrument is very

important because through this instrument we collect data in this pro9ect

through observations and personal interview were conducted.

Peronal intervie0+ as we were doing direct selling we interacted with my

customers and asked about their views in selecting a service and what are

their wants and e$pectations from a service provider.

$amplin, plan+ -fter "naliing the research approach and instruments a

sampling must be designed

$amplin, -nit+ &i2erent 8rofessional, (harted -ccounts, Ta$ consultants,

)awyer, Business man, 8rofessionals and %ousewives.

$amplin, Tec&ni1-e+ =andom sampling.

/eearc& Intr-ment+ 7tructured ?uestionnaire.

Contact Met&o+ 8ersonal nterview.

$amplin, i2e+ 5y sample sie for this 8ro9ect was // respondents.

$amplin, proce-re+ what process should be used to collect the sampleO

7o, representation sample, convenience sampling is used.

Collect t&e in3ormation+ -fter completing all the steps, the data are

collected from di2erent sources.

Anal.2e t&e in3ormation+ -fter the data is collected they are analyed to

know the "ndings. The data is then tabulated to develop the frequency

distribution.• Preent t&e %nin,+ -s the last step, the "ndings are presented that are

relevant to the ma9or marketing decisions.

Primar. Data+ 4 -ll the people from di2erent professions were personally visited

and interviewed. They were the main source of primary data. The method of

collecting primary data was direct personal interview through a structured

questionnaire.

$econar. DataJ t was collected from the internal sources. The secondary data

was collected on the basis of organiation "les, newspaper, o@cial records,

magaines and the website of the company.

6



'. LITERATURE RE5IE6

Ber$ta(n a)(d 72889

?0!mined in his study t!(en from 2&&1 to 2&&" th!t in this eriod there is incre!se use of

home lo!ns !s com!red to riv!te mort)!)e insur!nce *P/I+.he h!ve divided his

study in to four sections. Sect ion 1 describes ,hy eo le !re )oin) more for home lo!ns

th!n P/I. the m!in re!son for this th!t no, home lo!ns m!r(et rovide Pi))yb!n( lo!ns for

those eole ,ho donBt h!ve 2& of do,n !yment. Section2 tells the f!ctors resonsible for the

)ro,th of home lo!ns !nd the ris(s on shiftin) to,!rd home euity m!r(et ,ithout !ny P/I

cover!)e. P/I c!n rotect lenders from most losses u t o " & o f $8 C ! n d t h e

! b s e n c e o f P / I , i l l r e s u l t i n c o n s i d e r ! b l e l o s s e s i n ! n e nvironment.

Section 3 tells the me!sures in ch!n)es of tye of lo!ns. or this he h!ve t!(en the

d!t! from the 2&&1 !nd 2&&7 =S ! joint roject by =>D !nd ensus 8he results of this !n!lysis

resented in 8!ble One reve!l ! sh!r incre!se in the Prev!lence of o,ner-occuied roerties

,ith multile mort)!)es !mon) roerties ,ith ;e,ly ori)in!ted

1/



f i r s tmor t)!)es . Sect ion # descr ibe the in!nci! l s t ! tus of s in)le- l i en !nd

mul t i l e - l i enhous eho l ds !nd f o r t h i s he h!ve t !(en t he s u r vey o f cons umer

f i n!n ce !n d sho, t h! t fin!nci!l osition is more ,e!(er in multile lo!ns th!n the sin)le

lo!ns.

5ande"": -err& 7288;

In his !n!lysis the sh!r rise !nd then suddenly dro do,n home rices f r o m t he e r iod

1 %% " - 2 & &" . c h! n) e s i n ri ce s ! re f or t he r e! so ns ! s s uc h e co no mi c

f und!ment ! l s 4 t he r ob l em ,!s no t s ubr i me l end i n) e r s e 4 bu t t he edE s

d r! m! t i c reductions4 then incre!ses in interest r!tes durin) the e!rly- mid-2&&& 4 the housin)

Fboom ,!s concentr!ted in those m!r(ets ,ith si)nific!nt suly-side restrictions4 ,hich tend

to be more rice-vol!tileG he roblem ,!s not in the e0cess suly of credit in

!))re)!te4 or the incre!se in subrime er se4 but r!ther in the incre!sed or reduced resence of

cert!in other mort)!)e roducts.

La courr: %(cea" 7288< !n!lysis in his study the f!ctors !ffected the incre!se in the level of

nnu!l ercent!)es r!tes *P:+ sre!d reortin) durin) 2&&5 over 2&&#. the three

m!inf ! c t o r s ! r e c h ! n ) e s i n l e n d e r b u s i n e s s r ! c t i c e s G * 2 + c h ! n ) e s i n

t h e r i s ( r o f i l e o f borro,ersG !nd *3+ ch!n)es in the yield curve environment.

8he result sho, th!t !fter controllin) for the mi0 of lo!n tyes4 credit ris( f!ctors4 !nd the

yield curve4 there ,!s no st!tistic!lly si)nific!nt incre!se in reort!ble volume

for lo!ns ori)in!ted directly by lenders durin) 2&&54 thou)h indirect4 ,holes!le

ori)in!tions did si)ni fic!n tly incre!se. in!lly4 )iven ! model of the f!ctors !ffectin)

results for 2&&#-2&&54 ,e redict th!t 2&&6resu lts ,il l con tinue to sho, !n inc re!se in the

ercen t!)e of lo!ns th!t !re hi)her ri ced ,hen fin!l numbers !re rele!sed in Setember

2&&7.

La cour %(cea" 7288=

=e e0!mined the home urch!se mort)!)e roduct references of $/I households.

Objectives of his study to !n!lysis the f!ctors th!t determined f!ctors their choice of

mort)!)e roduct4 is different income )rous h!ve some secified need for !rticul!r roduct.

8he role ricin) !nd roduct substitution l!y in this se)ment of the m!r(et !nd do results

11



v!ry ,hen lo!ns !re ori)in!ted throu)h mort)!)e bro(ersH or this they h!ve use

the re)ression !n!lysis !nd the results !re hi)h interest ris( reduce lo!n v!lue. Self

emloyed borro,er chooses reduce documented lo!ns th!n s!l!ried ,or(ers use of this

roduct tye seems to be more r ev!lent !mon) borro,ers ,ith subs t!nt i! l funds for

do,n !yment !nd better credit scores. In c!se of ricin) /ulti f!milies reuires rice remium

!nd l!r)er lo!ns c!rry lo,er r!te. nd the role of t ime4 !rt icul!rly4 the t ime

r eu i r ed f o r t he l o!n t o r oceed f r om ! l i c! t i on t o c l os i n) i t i s f i nd t h! t

)over nment .$end i n) t !( i n) t he l on)es t t i me !nd ;onr i me l o!ns t he s hor t

es t t ime ./ ult i f!m il y roert ies t!(e lon)er t ime in closin). nd durin) e!(

se!son t!(e lon)er t ime to close. nd for l!s t object ive i t i s f ind th!t bro(er

or i) in! ted lo!ns c lose f !s ter . 8he ef fec t of mort)!)e bro(ers on ri cin) !nd

other m!r(et outcomes is fertile )round for !dd ition!l rese!rch.

+. C/APTER OUTLINE

8he m!in objective of this fin!nce roject on com!rison of home lo!n scheme is to find out the

t!riff ch!n)es ch!r)es by other b!n(s in com!rison to =D b!n(.

8he !im of the study is to hel =D to (no, ,here it l!c(s in lo!ns !nd ho, for the

erform!nce of other b!n(s is better so th!t =D fi)ure out the common roblems bein) f!ced

by the customers ,hile de!lin) in the lo!n de!rtment so th!t further =D c!n imrove its

services !nd schemes offered by them to their customers.

LOAN AMO"NT OF HDFC

Pou can avail of ma$imum of up to 3CF of the cost of the property, including the

cost of the land.

LOAN TEN"/E

1



Pou can repay the loan over a ma$imum period of / years under both '=%) and

-=%). =epayment will not ordinarily e$tend beyond your age of retirement Hif you

are employedI or on your reaching 4C years of age, whichever is earlier. %owever,

%&'( will endeavor to determine the repayment period to suit your convenience.

/ATE OF INTE/E$T

The rate of interest of %&'( is 3.ECF.under the monthly rest option, interest is

calculated on monthly rests. 8rincipal repayment is credited at the end of every

month.

-t %&'( you have the choice between the normal '=%) and the innovative -=%).

-lternatively you can also avail the part of the loan under '=%) and balance under

-=%).

%&'( also o2ers you the option to switch between schemes for the nominal fee.

nterest rates on -=%) will be linked to %&'(’s =etail 8rime )ending =ate H=8)=I

which currently is 1*.ECF .The rate on your loan will be revised every three months

from the date of "rst disbursement, if there is a change in =8)=, i.e. the interest

rate on your loan may change. %owever, the #5 on the home loan disbursed will

not change. Hf the interest rate increases, the interest component in an #5 will

increase and the principal component will reduce, resulting in an e$tension of the

term of the loan, and vice versa when the interest rate decreasesI.customer will be

provided with an annual statement indicating the details of the interest and

principal payment made during the year.

"pto an incl-in, / 56 la!& 7 869:; 4 86<: ;

A'ove / 56 la!& 7 86:6;4 8866 ;

59 $=OT ANALY$I$ OF HO"$IN> FINANCE IND"$T/Y

$T/EN>TH$+4

• The industry has been witnessing very fast growth rate, which is 4F growth

in the "rst ?uarter of /10/1C as against *CF growth recorded in the "rst

quarter of /1*/10.

1*



• The market faces a high demand curve, thoroughly mismatched by a low

supply curve

• nvestment is based in assets that are securities G those that have

historically appreciate rapidly.

• Ta$ bene"t G other facilities provided on loan repayments.

=EEKNE$$E$+4

• The foreclosure rules of court of law such as provision regarding the

ownership of not more than one house Hin &elhiI binds the industry.

• The healthy of an %'( depend upon its ability to mob up low cost funds.

• -: %'( is unable to tap the rural market due to lack of proper retrieval

procedures so whilst

• The rural market o2ers a higher rate of return> it has a higher risk G default

rate.

• 5any legal impendent e$ist, deferring purchase of certain types of property

beyond a

• (ertain e$tent thereby negatively impacting weak mortgage laws, resulting in

an increase in risk compo ending

OPPO/T"NITIE$+

• The housing industry faces a severe shortage of houses. The total demand for

houses is e$pected to touch around 16.0/ million units by the year /14 of

these 1.3 million• &welling units H4C63FI would be in rural areas G 4.4 millions dwelling units

H*0./FI in urban areas.

• Khile the loan facility is backed by the security of property this sector

represent a low margin But on the low margin but on the same line low risk

segment. The address this

• 5arket the ones lies on the %'(7 to device bold G innovative alternatives like

mortgage Based securities use of method such as door to door collection of

installments assessing the (reditworthiness of the prospective client and

providing for group securities.• The roles of :%B in re"nancing G providing regulation of housing "nance

system.

• The government’s initiatives to promote the sector G its contribution in

uplifting the sector.

TH/EAT$

10



• The industry faces increased competition as more G more foreign backs G

%ousing 'inance (ompanies are providing loan facility.

CONCLUSION

.

• The ndian customer has come a long way from purchasing to ful"lling their

needs from buying a house customers now grab everything that comes their

way but they do their own survey of optimum loans> same is the case with

banks G housing loans.

1C



• Kith innumerable choices before him, the customer is needed then king.

• t is therefore imperative that if the bank has to succeed in competitive world,

it should be technological starry.

• (ustomer centric progressive driven by highest standard of cooperative

governance G guided by sound ethical values G above all should have

personalied customer services.

• There is scope of e$ploiting the vast middle income group by releasing loans

with special interest rate, which would be bene"cial to both parties.

RECO%%ENATIONS

• To broaden the customer base the vast middle income strata should

be fully e$ploited.

• 7implify the procedure, reduce service charges G demand only the

basic essential proof.

14



• 5ost banks are reluctant to advance loan to the service class. #.g. law

years, police o@cers etc. this aspect must be e$ploited.

• -doption of Qe$ible G more lenient penalty should the (ustomer fails

to deposit the payment on time. The penalty should be case to case

basis rather than the same for the entire customer base.

• =estriction to be reduced to bare minimum for loan advances G for

repayment. 'or e.g. o2ers )ong term repayment facilities G have no

age restriction to choosing repayment. The ma$imum age for

repayment could be increase to 4CE/ years of age. 7uch facility will

grow fast retail segment of the bank.

• +2er multiple repayment loans services. (lass to be e$ploited by

o2ering special reduced =ates G linking the repayment from the

source where the pay cheque to the employee is issued. This need to

undergo special contract with government organiation to ensure

implementation

BIBLIOGRAP/3

MA>A?INE$J4

• Banking 'inance, #ditor =. -garwal and -ssociates march /1*.

1E



NE=$PAPE/$+4

• Business standard.

• #conomic Times.

=EB$ITE$+4

• www.hdfc.com

• www.%&'(B-:<.com

• www.personalfn.com

• www.8:B.com

• www.7B.com

• www.((.com

• 7earch engine www.google.com

13

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http://www.sbi.com/

http://www.google.com/

http://www.hdfcbank.com/

http://www.personalfn.com/

http://www.pnb.com/

http://www.sbi.com/

http://www.google.com/

http://www.hdfc.com/

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