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INTRODUCTION

1.1 INTRODUCTION TO HOME LOANS

Home is a dream of a person that shows the quantity of efforts,

sacrifices luxuries and above all gathering funds little by little to afford one’s
dream.
Home is one of the things that everyone one wants to own. Home is
a shelter to person where he rests and feel comfortable. Many banks
providing home loans whether commercial banks or financial institutions to
the people who want to have a home.
HDFC-(Housing Development And Finance Corporation) Home Loan,
India have been serving the people for around three decades and providing
various housing loan according to their varied needs at attractive &
reasonable interest rates. Owing to their wide network of financing, HDFC
Housing Loans provides services at your doorstep and helps you find a home
as per your requirements.
Many banks are providing home loans at cheapest rate to attract
consumers towards them. The more customer friendly attitude of these
banks, currently offer to consumers cheapest loan over homes.
In view of acute housing shortage in the country, and keeping in mind
the social – economic role of commercial banks in the present times, the RBI
advised banks to encourage the flow of redit for housing finance.
With the RBI reducing bank rate, the home loan market rates nose-
diving by 50 basis points. The HDFC Bank and Standard chartered bank has
become the first player in this sector to announce a housing loan for a 20
years period. No doubt it will enhance the end cost people to plan their
house over longer duration now; it has been made easy for a person to buy
that dream house which he dreamt of long ago.

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 HDFC also provides with Home Improvement Loan for internal and
external repairs and other structural improvements like painting,
waterproofing, plumbing and electric works, tiling and flooring, grills and
aluminium windows. HDFC finances up to 85% of the cost of renovation
(100% for existing customers).
Current status is that HDFC reduced home loan rates by 50 basis
points for all its existing floating rate customers.

1.2 OBJECTIVES OF STUDY

There is no strongest foundation for your dream home, than a cheap loan.
Home loans have become that stronger foundations for people who want to
own a home. The main objectives of the study are as follows :-

➢ The main objective of this study is to know the Customers perceptions

about home loans of HDFC(housing development finance
corporation)LTD
➢ To know the awareness of customers about home loan products and
services.
➢ To make comparative study of Disbursement of home loans by a few
➢ Commercial banks.

➢ To study the satisfaction level of customers about home loans.

➢ To study the problems faced by customers in obtaining the home

loans.

➢ To learn about various aspect of hdfc home loan ltd.

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1.3 PURPOSE OF THE STUDY

The main purpose of this study is to attain the knowledge of the processing
system of home loans. Which is as follows :-

• To know the ideas of customers about home loan products and

services.

• To study the satisfaction level of customers about home loans.

• To study the problems faced by customers in obtaining the home

loans.

• To learn about various aspect of HDFC home loan ltd.

1.4 SCOPE OF STUDY

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The Indian housing finance industry has grown by leaps and bound in few
years. total home loans disbursements by banks has risen which witnesses
phenomenal growth from last 5 years. There are greater number of
borrowers of home loans. so by this study we can find out satisfaction level
of customers and problems faced by them in obtaining home.

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 RESEARCH METHODOLOGY OF THE STUDY

RESEARCH METHODOLOGY:-

Research methodology is a way to systematically show the research

problem. It may be understood as a science of studying how research is done
scientifically. It is necessary for the researcher to know not only the research
methods but also the methodology.
This Section includes the methodology which includes. The research design,
objectives of study, scope of study along with research methodology and
limitations of study etc.

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• To know the Customers perceptions about home loans of HDFC housing
development finance corporation LTD.
• To study the satisfaction level of customers about home loans.

• To study the problems faced by customers in obtaining the home loans.

• To make comparative study of disbursement of home loans by

commercial banks, the study shall be conducted in the manner
enumerated below-

2.1- RESEARCH DESIGN:-

This project is based on exploratory study as well descriptive study. It

was an exploratory study when the customer satisfaction level was studied
to suggest new methods to improve the services of HDFC LTD in providing
home loans and it was descriptive study when detailed study was made for
comparison of disbursement of home loans by commercial banks.

2.2 – SOURCES OF DATA :-

To fulfill the information need of the study. The data is collected from
primary as well as secondary sources-

A - PRIMARY SOURCE:-

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In survey approach we had selected a questionnaire method for taking a
customer view because it is feasible from the point of view of our subject &
survey purpose. We conducted 200 sample of survey in our project to judge
the satisfaction level of customers which took home loans.

• Sample size;-
For the questionnaire I have taken the sample size of 200 customers of
HDFC LTD.

B – SECONDARY SOURCE:-

It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, news papers, magazines, management books, preserved
information in the company’s database and website of the company.

2.3DATA COLLECTION INSTRUMENT

DEVELOPMENT :-
The mode of collection of data will be based on Survey Method and Field
Activity. Primary data collection will base on personal interview. I have
prepared the questionnaire according to the necessity of the data to be
collected.

2.4 LIMITATIONS OF THE STUDY:-

This study also includes some limitations which have been discussed as
follows:

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i) The sample size of 100 customers and 4 banks might prove a limitation
because of difficulty in generalization of results.

ii) To collect the data from various banks was quite difficult due to non-
cooperation of some banks. This proved to be major limitation of the study.

iii) To access such a large number of customers was difficult because of non-
cooperative attitude of respondents.

iv) Lack of data was also the other limitation of the study as some of banks
do not have proper data on topic.

v) There was limitation of time to conduct such a big survey in limited

available time.

vi) Ignorance and reluctant attitude of customers was also a major limitation
in this study.

Thus above all were the limitations in this research study. The
maximum efforts were made to overcome these limitations in the study.

2.5 THE HISTORY OF INDIAN HOME LOANS:-

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 Home loans in India have made people Buy Property in India in spite
of the skyrocketing prices. Today, we find considerable Real Estate
Investment in India, either in the field of Residential Property in India or
Commercial Properties in India. Home Loans in India are disbursed by many
Banks as Loan Banking is on of the most important function of the Financial
Services in India. Property Dealers and Real Estate Consultants in India
usually recommend that we undertake appropriate Home Loan or Mortgage
Loan counseling so that we can Buy Apartment in India at an affordable
Mortgage Rate.Purchasing the home of your dreams is not an easy task.
Especially when you plan to buy a home on loan. Home loan means that you
buy a house on installments. In simpler terms when you want to own a home
and can’t afford to pay the amount in lump sum, you can pay it in monthly
installments with an interest rate.
The interest rates of home loans are expected to go down even
further according to analysts who foresee a cut down in the rates by the RBI
in the wake of the decision taken by US Federal Reserve to cut its rates by a
significant margin.
There are number of companies offer cheap home loans at a low interest
rate. You can avail loan against existing house for renovation or expansion
etc. There are many nationalized banks that offer finance for affordable
housing. India Housing has put together a comprehensive data to provide
you with the cheapest Home Loans available in the market. We have listed
all the important housing finance institutes and some of the top home
finance banks providing lowest interest rates.
In the last few years, housing loan scenario in India has changed
drastically. It has taken a front seat and people are looking forward to
owning their own houses. It is no more a dream that required lifetime saving
and a difficult decision to make. Today the new home purchase loan is much
easily available and is much cheaper than what was available earlier. Banks
are now everywhere and the schemes are implemented even in villages and
smaller towns. The housing loans are popular there too, however, the activity

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of building flats is little slow. It would not be wrong to say that there has
been a boom in the home loan market and with this boom; there is also a
boom in the Number of home loans mortgage brokers in India.
The main reason for this boom in home loan market is the change in
government policies. It is our government’s motivation that the home loan
interest rates in India have fallen considerably. Lot many banks are offering
home loans and this is available at low EMIs (Equated monthly Installments).
High EMIs are now a thing of past. Today lending rate is in the range of 7.5 to
15 %.
Again, there are different types of home loans available today. The
interest rate available is also of two different types. One is the fixed rate loan
and the other is the floating rate loan. In the fixed rate loan, whatever
interest is fixed on the start of loan is carried on for the complete period.
However, in the other one, the interest rate is not fixed and as the interest
rate goes up or low the effect is directly transferred to the person who is
taking the loan. In the last few years the floating interest rate has been a
favorite among most of the people taking home loans.
There is also a trend to opt for home construction loan. This loan is
available to those who want to design their homes according to their
requirement and taste. In other words, this loan is meant for those who
themselves want to construct their new home.
As shared earlier, taking a loan is not a difficult task. However, before
taking a loan, one must realize that the relationship with the bank will be for
a longer period usually 15 to 20 years so one must ensure faith and integrity
in bank. Apart from low rate of interest, the bank should also provide some
value added services. The other thing is to look into is the property that is to
be brought. Making sure that the builder has all sanctions and facility to build
a good building is very important.
Taking home loans these days has become simpler. With the RBI
regularly bring down interest rates; taking home loans have become
extremely easy. Housing loans which were 16.5% to 18% a few years ago fell

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by 11.5% to 13%. With interest rates going down, people increasingly
number apply to take these loans. Some of the leading banks offering home
loans in India, including ICICI Bank, IDBI Bank, HDFC Bank , Bank of Baroda,
SBI, Standard Chartered Bank and Axis Bank .

2.6 Home Loan Procedure in India :-

Submission of Application Form: - After choosing a particular home loan,

the customer submits the application form to the housing finance company
(HFC) along with other relevant documents as required by the HFC. They
comprise documents to establish income, age, residence, employment,
investments, etc. The customer also needs to hand over a cheque for
payment of an up front (non -refundable) processing fee of about 0.5-1% of
the loan amount to the HFC.

Validation of the Information: - In the next stage, HFCs validate the

information provided by the customer on the application form. They usually
conduct checks on the residential address of the customer, the place of
employment of the customer, and credentials of the employer. Some HFCs
may insist on a personal interview with the customer and perform a
reference check on the references provided by the customer on the
application form.

Issue of Sanction Letter :- After due appraisal of customer profile, a

sanction letter is issued which contains details such as loan amount, rate of
interest, annual / monthly reducing balance, tenor of the loan, mode of
repayment and general terms and conditions of the loan. This is the actually
the approval of the money lending procedure by the company. However, the
money is sanctioned only after the documents and the property on behalf of
which the loan is being granted is thoroughly verified.

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Submission of Documents: - Once the sanction letter is passed, the
customer is required to leave the entire set of original documents pertaining
to the property being purchased with the HFC as security for the loan
amount sanctioned. These documents remain in the custody of the HFC till
the time the loan is fully repaid. Once the documents are handed over to the
HFC, they send all the documents for a thorough legal scrutiny.

Validation of Property: - Prior to disbursement, the HFC also conducts a

site visit to the customer's property to ensure that all construction norms
have been adhered to properly. Once the HFC is satisfied that the property is
legally and technically clear, they disburse the loan amount. The
disbursement from the HFI is on the basis of the stage of construction of the
property.

Payment Procedure: - Once all the above mentioned process, the

borrower is entitled to take the money from the lender party. Until such time
that the entire sanctioned amount is not drawn, the customer is supposed to
pay a simple interest on the Actual Amount drawn (without any principal
repayments). The EMI payments commences only after the entire sanctioned
loan amount is drawn.

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2.7 INTEREST RATES PROVIDED BY VARIOUS BANKS
Loan
Finance EMI / Lakh EMI / Lakh
Period Fixed Floating
Institution (INR) (INR)
(in years)

Up to 5 9.00 2076 8.00 2028

Bank of Baroda 6 to 10 9.25 1230 8.25 1227
11 to 15 9.50 1044 8.25 970
16 to 20 9.50 932 8.50 868

Up to 5 9.50 2100 8.75 2064

State Bank Of6 to 10 9.75 1300 9.25 1280
India 11 to 15 - - 9.25 1029
16 to 20 - - 9.75 949

Up to 5 11 2175 9.50 2101

HDFC 6 to 10 11 1375 9.50 1294
11 to 15 11 1137 9.50 1045
16 to 20 11 1033 9.50 933

ICICI Bank Up to 5 10.75 2162 9.50 2101

6 to 10 10.75 1364 9.50 1294
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 11 to 15 10.75 721 9.50 1045
16 to 20 10.75 1016 9.50 933

Up to 5 10.50 2149 9.50 2100

LIC Housing6 to 10 11 1373 9.50 1294
Finance 11 to 15 11 1137 9.50 1044
16 to 20 11 1032 9.50 932

Up to 5 9.00 2076 10.50 2150

PNB Housing6 to 10 9.00 1267 10.50 1350
Finance 11 to 15 9.25 1030 10.50 1106
16 to 20 9.50 933 10.50 999
The above table illustrates the comparison between the interest rates
from various Housing Finance Companies and banks. It can be seen that if
one wishes to go for floating loans, the bank which gives the best deal as far
as the interest rate is concerned is HDFC followed by PNB Housing Finance
with the lower rates.

2.8Recent trends of home loan in India:-

In order to understand the recent trends we need to know or

understand various factors. These factors play vital role in Indian home loan
market. These include interest rate on which banks provide home loan, tax
rebate on home loan and its impact. Apart from this to understand the recent
trend we need to compare the trends of home loan of different years. Here
we have compared the interest and other market trends of year 2009 with
2007-08. This kind of comparison gives the result which helps us to
understand the trends of market of any industry. Apart from the impact of
present and past economic ups and down also affect the trends. Today the
US slowdown is the major issue which has affected almost all the industry. So
we have also discussed this issue in terms to define trend of home loan
market in India.

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HDFC: yielding Ground: -
Loan growth may slow down in 2009-10 as the company loses some
market share.

GRAPH

Competition is not new to HDFC, after all ICICI Bank was a tough
competitor when it went on a customer acquisition spree some years back.

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This time around, although ICICI may not be in a position to give HDFC a run
for its money, public sector banks, especially State Bank of India (SBI) could.

The difference between four years ago and now is that money today is
not yet cheap and certainly not as inexpensive as it was back in 2004 and
2005. Of course with bank loans to HDFC now treated as priority lending, the
cost of funds for HDFC should come down. But should long-term rates go up,
HDFC will feel the pinch.

That’s why the market sat up and took note when SBI kicked off an 8
per cent in- the- first -year product believing HDFC could lose some market
share. In the recent rally, the stock which had plunged to a two year low, has
gained 31 per cent to the Sensex’s 23 per cent. The good news is that
transactions could start picking up in the second half of 2009 now that
property prices have started trending down as have interest rates.

But although the home loan major believes it can manage a growth of
20 per cent in 2009-10, analysts are not so sure. CLSA points out that
HDFC’s loan growth (pre-securitisation) would be around 15-17 per cent. One
reason for this is that HDFC Bank may now hold back a higher proportion of
loans that it originates; the bank currently sources just over a fourth of
HDFC’s loans.

As a result HDFC’s operating income may increase by about 15 per

cent in 2009-10 while its net profits should grow by about 10-12 per cent.
HDFC has always scored when it comes to keeping bad loans in check, which
is why a few delays or even defaults will not hurt the balance sheet. At Rs
1,653,the stock trades at around 2.8 times the estimated adjusted book
value for 2009-10.

2.9Types of home loans: -

Housing loans offered by banks are of different types:-

• Home Purchase Loans

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 • Home Construction Loans

• Home Improvement Loans

• Home Extension Loans

• Home Conversion Loans

• Land Purchase Loans

• Stamp Duty Loans

• Bridge Loans

• Balance Transfer Loans

• Refinance Loans

• Loans to NRIs

Home purchase loans:-

This is the basic home loan for the purchase of a new home. If you
want to buy a flat in some society or some already built house, banks and
HFCs sanction you home purchase loans for this process.
Home construction loans:-
This loan is available for the construction of a new home on a said
property. The documents that are required in such a case are slightly
different from the ones you submit for a normal Housing Loan. If you have
purchased this plot within a period of one year before you started
construction of your house, most HFCs will include the land cost as a
component, to value the total cost of the property. In cases where the period
from the date of purchase of land to the date of application has exceeded a
year, the land cost will not be included in the total cost of property while
calculating eligibility.

Home improvement loans:-

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 These loans are given for implementing repair works and renovations
in a home that has already been purchased, for external works like structural
repairs, waterproofing or internal work like tiling and flooring, plumbing,
electrical work, painting, etc. One can avail of such a loan facility of a home
improvement loan, after obtaining the requisite approvals from the relevant

building authority. the following are coming under the home

improvement loans:
• External repairs

• Tiling and flooring

• Internal and external painting

• Plumbing and electrical work

• Waterproofing and roofing

• Grills and aluminum windows

• Waterproofing on terrace

• Construction of underground/overhead water tank

• Paving of compound wall (with stone/tile/etc.)

• Borewell.

Home extension loans:-

An extension loan is one which helps you to meet the expenses of any
alteration to the existing building like extension/ modification of an existing
home; for example addition of an extra room etc. One can avail of such a
loan facility of a home extension loan, after obtaining the requisite approvals
from the relevant municipal corporation.

Home conversion loans:-

This is available for those who have financed the present home with a
home loan and wish to purchase and move to another home for which some
extra funds are required. Through a home conversion loan, the existing loan
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is transferred to the new home including the extra amount required,
eliminating the need for pre-payment of the previous loan.

Land purchase loans:-

This loan is available for purchase of land for both home construction
or investment purposes.

Stamp duty loans:-

This loan is sanctioned to pay the stamp duty amount that needs to be
paid on the purchase of property.

Bridge loans:-
Bridge Loans are designed for people who wish to sell the existing
home and purchase another. The bridge loan helps finance the new home,
until a buyer is found for the old home.

Balance- transfer loans:-

Balance Transfer is the transfer of the balance of an existing home
loan that you availed at a higher rate of interest (ROI) to either the same HFC
or another HFC at the current ROI a lower rate of interest.

Refinance loans:-
Refinance loans are taken in case when a loan for your house from a
HFI at a particular ROI you have taken drops over the years and you stand to
lose. In such cases you may opt to swap your loan. This could be done from
either the same HFI or another HFI at the current rates of interest, which is
lower.

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NRI home loans:-
This is tailored for the requirements of Non-Resident Indians who wish
to build or buy a home or property in India. The HFCs offer attractive housing
finance plans for NRI investors with suitable repayment options.
On would be entitled for home loans in the range of Rs 5 lakh to a maximum
of Rs 1 crore, based on the repayment capacity, previous credit history and
the cost of the property. The bank may provide a maximum of 85% of the
cost of the property or the cost of construction as applicable and 75% of the
cost of land in case of purchase of land. The repayment capacity is
calculated taking into account factors such as:
• Age
• Income/Salary
• Qualifications
• Dependant/(s)
• Assets/Liabilities
• Credit History
• Stability / continuity of your employment/business
• Income of co-applicant/(s)
Taking home loans these days has become simpler. With the RBI
regularly bring down interest rates; taking home loans have become
extremely easy. Housing loans which were 16.5% to 18% a few years ago fell
by 11.5% to 13%. With interest rates going down, people increasingly
number apply to take these loans. Some of the leading banks offering home
loans in India, including ICICI Bank, IDBI Bank, HDFC Bank State Bank, Bank
of Baroda, Kotak Bank, SBI, Standard Chartered Bank and Axis Bank.

2.10HDFC Home Loan:-

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Eligibility; - HDFC home loans are available for:

• Purchase of flat, row house, bungalow from developers

• Purchase of existing freehold properties

• Purchase of properties in an existing or proposed co-operative housing

society or apartment owner's association

• Purchase of first Power of Attorney purchases in Delhi for DDA flats

allotted before 1992.

• Construction of own house

HDFC home loans can be applied for either individually or jointly. Proposed
owners of the property will have to be co-applicants. However, the co-
applicants need not be co-owners. Maximum tenure is 20 years subject to
retirement age.

Loan Amount: - 85% of the cost of the property (including the cost of the
land) and based on the repayment capacity of the customer.

Rate of Interest :- The current applicable fixed rate of interest in respect of

the total loan approved is as follows:

For loans up to Rs.2, 00,000:-

Term of Loan Rate Per Annum

(No. of Years) (%p.a)

Up to 5 10.00
6 - 10 10.75

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 11 - 15 11.00

For loans greater than Rs.2, 00,000

Term of Loan Rate Per Annum

(No. of Years) (%p.a)

5 10.00
10 11.00
15 11.25

All loans on annual rest basis. You repay the loan in Equated Monthly
instalments (EMIs) comprising principal and inertest.EMI per Rs 1, 00,000
(for loan up to Rs.2, 00,000)

Term of Loan
Rupees
(No. of Years)

5 2199
10 1401
15 1159

EMI per Rs.1, 00,000 (for loan greater than Rs.2, 00,000)

Term of Loan
Rupees
(No. of Years)

5 2199
10 1416
15 1175

Pending final disbursement, you pay interest on the portion of the loan
disbursed. This interest is called pre-EMI interest.An early redemption

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charge of 2% of the amount being prepaid is payable on repayment of a
loan ahead of schedule.

Repayment Period: - Repayment Options –

Step Up Repayment Facility; - helps younger borrowers to take a much

bigger loan today based on an increase in their future income.

Flexible Loan installments Plan: - Often customers, parents and their

children wish to purchase properties together. The parent is nearing
retirement and their children have just started working. This option helps
such customers combine the incomes and take a long term home loan where
in the instalment reduces upon retirement of the earning parent.

Tranche Based EMI - Customers purchasing an under construction

property need to pay interest (on the loan amount drawn based on level of
construction) till the property is ready. To help customer save this interest,
HDFC has introduced a special facility of Tranche Based EMI. Customers can
fix the installments they wish to pay till the time the property is ready for
possession. The minimum amount payable is the interest on the loan amount
drawn. Anything over and above the interest paid by the customer goes
towards Principal repayment. The idea is customer benefits by starting EMI
and hence repays the loan faster.

Accelerated Repayment Scheme provides borrower the opportunity to

repay the loan faster by increasing the EMI. Whenever the borrower gets an
increment, increase in disposable income or have lump sum funds for loan
prepayment, they can benefit by saving of interest because of faster loan
repayment. Borrower can benefit by:

• Increase in EMI means faster loan repayment

• Saving of interest because of faster loan repayment

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 • You can invest lump sum funds rather than use it for loan prepayment.
The return from the investments also gives you the comfort of paying
the increased EMI...

Documents Required :-

Salaried Self Employed Self Employed

Customers Professionals
Application form Application form with
with photograph photograph
Education Qualifications
Latest Salary-slip Certificate and Proof of
business existence
Last 3 years Income Tax
Form 16
returns (self and business)
Last 6 months Last 3 years Profit /Loss and
bank statements Balance Sheet
Last 6 months bank
Processing fee
statements
cheque
Processing fee cheque
Businessman
Application form with
photograph
Education Qualifications
Certificate and Proof of
business existence
Business profile
Last 3 years Income Tax
returns (self and business)
Last 3 years Profit /Loss and
Balance Sheet
Last 6 months bank
statements (self and
business)
Processing fee cheque

The Credit Appraisal is an important step in sanctioning loan applications

.Hence the Credit Appraiser needs to have certain important documents to
compute the credit worthiness of the applicant .In the case of salaried
person these include the following :-

1) SALARY SLIPS (3 MONTHS CURRENT) :- The salary slip is usually a

printed sheet of paper that contains 2 components

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Income/Earnings collumn: - It contains an exhaustive list of the various
components that are added to the persons salary. They contain various
components like Basic pay, HRA etc.

Deductions :- It contains an exhaustive list of various components that are

deducted from the persons Earnings. They contain various components like
Income tax, Provident fund, Employee Loans etc.

2) BANK STATEMENTS(6 MONTHS CURRENT) ;- The bank statement

contains the various transactions that the applicant performs in his bank
account. It has 3 components

• Date
• Descriptions ;- It contains the brief and standardized description of
the activity or the account related to the transaction .Eg. Clearing
cheque 166129, Transfer deposit.
• Deposits: - It contains the amounts that were credited to the account

• Withdrawal ;- It contains the amounts that were debited to the

account. This is carefully studied to find out about any regular
withdrawals or a series of checks so that any existing loans may be
revealed and there can be a correct estimate of the repayment
capacity.
• Balance :- It shows effect of transaction on the pre existing account
balance
• Special feature :- HDFC will not consider any loan s with out
standing EMI of or below 6 months.
3) FORM 16 :- It is form given by Employer which states the income earned
from that company during the full financial year ,and gives the details of Tax
deducted at source.

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4) COPY OF INCOME TAX RETURN(SARAL) :- The SARAL tax return form
reveals the structure of incomes and/or the various earnings of the tax
returnee .It also shows the various deductions that will not be included and it
also contains the Rebates on which he earns tax benefit.

5) RESIDENCE PROOF :- The residence proof includes the Electricity bill,

Telephone bill, Ration Card ,Passport.

6) PHOTO ID PROOF :- The photo proof includes the Pancard ,Voter ID card,
Employee ID card, Passport etc.

7) AGE PROOF: - The age proof includes the Pan card, Passport, Photo ID.

8) LOAN APPLICATION FORM DULY FILLED :- It can also be downloaded

from HDFCs user friendly web based portal.

9) CHARGES FOR PROCESSING FEES :- This is a standard and nominal

fees to be paid at the time of applying for loan

Fees structure. 0.5% of loan amount

+Service tax of 12%
(Less)Education Less of 3%

OR 5618/-
HDFC takes from applicant whichever is less. This is applicable time to
time.
10) PHOTOCOPIES OF PROPERTY PAPERS.

NON RESIDENT INDIAN

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SALARIED/EMPLOYED; - An NRI is a person with Indian citizenship but
residing in another country. An NRI can take a housing loan from HDFC. He is
however not eligible for a Top Up loans,Home Equity Loans,Non Residential
Premises Loans .He is however eligible for Home Improvement and Home
Extension Loans from HDFC .
An NRI Loan is appraised on the Net Salary. This is the take home pay
package obtained after reducing the deductions from the earnings .As this
salary is low it reduces their loan eligibility .However the salary is converted
into Indian Currency for computing credit worthiness.The figure obtained is
higher in Indian currency hence the loan eligibility rises.Eg 5,487$ american
dollars will mean 2,46,915 Rupees.

SELF EMPLOYED PROFESSIONALS :- An NRI applicant can also be a

Doctor, Engineer etc.In these cases HDFC will put them in the special
category of Self Employed Professionals.
Their credit appraisal is carried out as follows:-
Their latest available Profit and Loss A/c is reviewed by the credit appraiser.
This account has two sides a Profit side which reveals all earnings and
gains .There is also a Loss side which shows all taxes, liabilities and losses.
We refer to the Profit side a the Gross Receipts.These includes components
revealing the nature and amount of the Prime income and other earnings Eg
Consultation fees in case of Doctor .
From the Gross Receipts we calculate the Gross Profits and thereon move to
calculate Loan eligibility .Which is the loan amount that can be conveniently
sanctioned to the applicant.

Loan Eligibility = Gross Profit * 2

Another important consideration is that the Annual outflow of EMIs should
not exceed the NET PROFIT. The Net Profit is computed by deducting the
various costs and losses from the Gross profit.

28
 STAGES OF HOME LOAN

Applicati Munirka
on HUB
DataEntr
y
Login Scanning

Recommendati
DoubleCheckin on
Disburseme g Over(ROVR)
nt of loan Over(DCOVR)
Fixed
charges

The representation shown above is not a perfect copy of the actual process.
This is because these stages are taking place simultaneously and one
application is being taken care for by the experienced employees of both
HDFC Ltd service centre and HDFC Ltd HUB (also called the back end
office).Also the applicant may be asked to send information or may be asked
questions regarding his requirement and/or his documents for his own

29
convenience Hence the loan application may or may not shuttle through
different stages.

APPLICATION STAGE :- This is the stage where the Application Form first
reaches the concerned Service Centre Here all the documents in the
application are reviewed by the experienced staff present at the service
centre The HDFC Ltd employee who reviews the file checks to see whether
all documents are present and in their proper place .He checks if the
documents are duly filled,not fake,attested by authority in question and
present in order.In case any document is missing the applicant is contacted
electronically or by mail .The applicant is contacted by telephone and
requested for the document until he denies it being with him. This exercise is
called FOLLOW UP. the credit appraisal of the loan application starts at this
stage. The service centre employees compute the gross salary, IIR, FOIR,
Loan Eligibility ratio etc.The credit worthiness of the applicant is calculated
here.
It is also at this stage that the QUICK DATA ENTRY of the loan
application is done to create a serial no. of the application. after that another
page appears and more data is entered .It is now that a special and unique
LOAN A/C NO. is created under which all the loan processes will be carried
out. The number that has been generated is communicated to the applicant
by means of a letter and/or electronic communication the system of
electronically recording the data helps to create ready reference, a proof
,helps in quick and easy processing of the data. It also helps to very easily
and quickly share data with other employees of HDFC.
The next and important processing performed at the service centre is
that of filling up a document known as the INTERVIEW SHEET. for
processing individual loans (salaried cases) .It contains various simple
entries like :-
1. Name of borrower
2. Name of co-borrower

30
3. Income details:-Family background and permanent address etc.
It also contains various important entries like.
5. Gross Salary
6. Rental
7. Other incomes
8. Obligations: - The various other loans that the applicant is entitled to
pay ,their amount, their remaining terms ,source etc.
9. Remarks;- This collumn contains the various findings that the employee
has found out after thorough review of the applicants documents such as
bank statement, salary slip etc.

Hence the interview sheet contains the important findings which the
employee has collected after careful review of the various documents .The
interview sheet helps to cut corners and helps save time by not having other
employees to go through the documents again and again .It hence acts as a
souce of quick reference.
After all this has been performed well enough the loan application will
be arranged in a file and all it will be given its loan a/c no which also acts as
its file no. the file is now ready to be sent to the HUB where further
processing will take place.

SCANNING: - In this stage the various important documents of the applicant

are scanned. this helps to create their electronic copy which acts as a ready
reference, a proof, and can also be shared and utilized by other employees
of HDFC Ltd.

DATA ENTRY :- The file has been sent to the back end office or the HUB .At
HUB there are many experts with their own specializations . these officials
review the various parts of the filae again and perform many specialized
tasks Data entry is also one of these tasks .this entry is much more different

31
and complex as compared to the earlier performed Quick Data Entry. An
exhaustive amount and type of information has to be entered into the ILPS
system ranging from Personal Details, Employment Details to Property Rate
History and Customer Interactions.

RECOMMENDATION OVER (ROVR) :- The Recommendation OVER is also

reffered to as the First Appraisal at this stage certain specially appointed
persons have been given the responsibility of recommending a loan. These
people have to take special care of reviewing every document, and all the
small details that need to be considered before considering the loan
application to be valid. After this the file is sent to another specially
appointed person as explained below. At this stage if any correction or
mistake is present it can be sent back to the Service Centre.

DOUBLE CHECKING OVER :- As the name suggests at this stage a

specially appointed person will double check all the past proceedings .He will
examine the Loan file for any discrepancies ,any missing and /or misplaced
documents,the Credit Appraisal results,etc.this is a very important stage and
must be handled with exceptional care. This is because a mistake at this
stage can cause a great loss to the company.The Double checker is
responsible for the ultimate sanctioning of the loan .If any mistake is done at
this stage there is no going back and hence no protection.HDFC takes great
care while appointing double checkers .They should have completed a select
number of years with the company and should have shown exemplary
performance and must posses experience.

SANCTIONING :- An authorized sanctioning authority within HDFC itself will

review the remarks of Double Checker and Sanctioning authority .If it
considers the loan suitable to be Sanctioned it gives its approval .After it has
given its approval stamp the ILPS system will automatically send a letter to
the Applicant that his loan has been sanctioned.

32
After this approval the Applicant can go to whichever Service Centre which
he selects to get his loan disbursed.

SPECIAL CASE :- A special case can arise if the applicant has not
mentioned the property for which he wants to take a loan .In that case the
applicant can let the case be remain pending . this means that the
Applicants loan request will be considered to be complete even though he
has not decided the property. However the Applicant is expected to finalise
the property in a short time.
A Property Address is necessary to
1. get the loan disbursed
2. Process the Legal and Technical Appraisal of the property and its
Papers.

DISBURSEMENT: - The last and final stage in the Home Loan process is that
of disbursement. after the sanctioning has taken place the applicant
becomes a registered customer of HDFC Ltd .
He can now take the disbursement of the loan from any of the various
service centre of HDFC .The loan shall be disbursed in one Lump sum or in
suitable installments to be decided by HDFC with reference to the need
and/or progress of construction (which decision shall be final and binding on
the borrower).The borrower hereby acknowledges the receipt of the loan
disbursed as indicated in the receipt.

33
34
35
 COMPANY PROFILE

OF

HDFC HOSING DEVELOPMENT FINANCE CORPORATION LTD

INTRODUCTION:-
Housing Development Finance Corporation Limited , founded
1977 by Ravi Maurya and Hasmukhbhai Parekh, is an Indian NBFC, focusing
on home mortgages. HDFC's distribution network spans 243 outlets that
include 49 offices of HDFC's distribution company, HDFC Sales Private
Limited. In addition, HDFC covers over 90 locations through its outreach
programmes. HDFC's marketing efforts continue to be concentrated on
developing a stronger distribution network. Home loans are also Sharcket
through HDFC Sales, HDFC Bank Limited and other third party Direct Selling
Agents (DSA).
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC
has since emerged as the largest residential mortgage finance institution in
the country. The corporation has had a series of share issues raising its
capital to Rs. 119 Crores. The gross premium income for the year ending
March 31, 2007 stood at Rs. 2,856 Crores and new business premium income
at Rs. 1,624 Crores. The company has covered over 8,77,000 lives year
ending March 31, 2007.
HDFC operates through almost 450 locations throughout the country
with its corporate head quarters in Mumbai, India. HDFC also has an
International Office in Dubai, UAE with service associates in Kuwait, Oman
and Qatar. HDFC is the largest housing company in India for the last 27
years.

36
 SNAPSHOT-I

• Incorporated in 1977 as the first specialized Mortgage Company in

India.

• Almost 90% of initial shareholding in the hands of domestic institutes

and retail investors. Current 77% of shares held by foreign institutional
investors.

• Besides the core business of mortgage HDFC has evolved into a

financial conglomerate with holdings In:

•
CHART:- 3.1

72.26%
60%
23.26%
HDFC
HDFC
LTD
STANDAR
ASSET
BANKMANAGEMEN
(inclusive
D of
LIFE
T

✔ HDFC Standard Life insurance Company- HDFC holds 72.26 %.

✔ HDFC Asset Management Company – HDFC holds 60%
✔ HDFC Bank- HDFC holds 23.26%.

37
 ✔ Intelenet Global (Business Process Outsourcing) – HDFC holds 50%.
✔ HDFC Chubb General Insurance Company – HDFC holds 74%.

SNAPSHOT-II

• Loan Approvals Rs. 805 billion.

(Up to Dec 2007) (US $ 18.30 bn.)
• Loan Disbursements Rs.669 billion
(Up to Dec. 2007) (US $ 15.20 bn)
• Housing Units financed 2.5 million.
• Distribution
➢ Offices 181
➢ Outreach Programs 90

jjjjjjjj HDFC Limited

Type Public (BSE: 500010)

Founded 1977
Headquarters Mumbai,India
Ravi Maurya
Key people
Hasmukhbhai Parekh
Industry Housing Finance
Revenue US$ 1.49 billion (2008)
Employees 1,029
Website www.hdfc.com

38
KEY EXECUTIVE HDFC HOUSING DEVELOPMENT FINANCE CORP LTD
:-
Mr. Deepak S Parekh: - serves as Executive Chairman and Chief Executive
Officer of the Board of Housing Development Finance Corp. Ltd., (HDFC). He
joined HDFC Limited in a senior management position in 1978. He was
inducted as a whole-time director of HDFC Limited in 1985 and was
appointed as its Executive Chairman in 1993. He is the Chief Executive
Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered
Accountants (England & Wales).

Mr. K.m mistry: - The Managing Director of the Corporation. He has been
employed with the Corporation since 1981 and was the executive director of
the Corporation since 1993. He was appointed as the deputy managing
director in 1999 and the Managing Director in 2000. He is also a member of
the Investors’ Grievance Committee of Directors.

Ms. Renu S. Karnad: - The Executive Director of the Corporation. She has
been employed with the Corporation since 1978 and was appointed as the
Executive Director of the Corporation in 2000. She is responsible for
overseeing all aspects of lending operations of HDFC.New Delhi.

BOARD OF DIRECTORS:-
Mr. D S Parekh - Chairman Mr. D N Ghosh

Mr. Keshub Mahindra - Vice Chairman Dr. S A Dave

Ms. Renu S. Karnad - Executive Director Mr. S Venkitaramanan

Mr. K M Mistry - Managing Director Dr. Ram S Tarneja

Mr. Shirish B Patel Mr. N M Munjee

39
 Mr. B S Mehta Mr. D M Satwalekar

GROUP COMPANIES:-
• HDFC Bank: World Class Indian Bank- among the top private banks in
India.
• HDFC AMC: One of the top 3 AMCs in India- Preferred investment
manager.
• Intelenet Global: BPO services for international customers.
• CIBIL: Credit Information Bureau India Limited.
• HDFC Chubb: Upcoming Private companies in the field of General
Insurance.
• HDFC Mutual Fund
• HDFC reality.com: Helps to search properties in all major cities in India
• HDFC securities
• HDFC Standard Life Insurance Company Ltd Aug, 2000

JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first
companies to be granted license by the IRDA to operate in life insurance
sector. Reach of the JV player is highly rated and been conferred with many

40
awards. HDFC is rated ‘AAA’ by both CRISIL and ICRA. Similarly, Standard Life
is rated ‘AAA’ both by Moody’s and Standard and Poor’s. These reflect the
efficiency with which HDFC and Standard Life manage their asset base of Rs.
15,000 Cr and Rs. 600,000 Cr. respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14 th
August 2000. HDFC is the majority stakeholder in the insurance JV with
81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is
the MD and CEO of the venture.
HDFC Standard Life Insurance Company Ltd. Is one of India’s leading Private
Life Insurance Companies, which offers a range of individual and group
insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.) India’s leading housing finance
institution and the Standard Life Assurance Company, a leading provider of
financial services from the United Kingdom. Both the promoters are will
known for their ethical dealings and financial strength and are thus
committed to being a long-term player in the life insurance industry- all
important factors to consider when choosing your insurer.

Business Growth:-

The company commands a market share of over 60% in the housing

finance sector. Leveraging on its brand equity HDFC has also entered the
Indian Mutual Fund scene quite recently. HDFC was the only applicant to be
given clearance by the government, to enter the Rs 250 bn life insurance
business. This in itself speaks volumes about the management’s professional
reputation.
Financial year 2000 proved to be a boon for housing finance
companies, as the tax benefits announced in the budget, coupled with the
low real estate prices and rising disposable incomes, spurred housing
demand. As a result, demand for housing finance too has registered high
rates of growth. The housing sector has now been recognized as an engine of

41
economic growth and HDFC is well placed to capitalise on this surge in
demand.
Against this backdrop, HDFC logged in an excellent performance. The
company’s approvals and disbursements during the first half of financial year
2001 witnessed a year on year growth of 33% and 32% respectively. The
robust growth in itself is a conclusion that HDFC’s business is far less
susceptible to any economy downturn.

(TABLE:-3.2) Financial Snapshot

Growth ratios FY98 FY99 FY00 1HFY0

1
Operating 13.7% 21.6% 15.2% 21.1%
income
Other income 331.7% -24.6% -54.0% 346.8%

Net profits 18.3% 13.8% 20.4% 19.8%

Approvals 28.9% 25.2% 30.3% 33.4%

Disbursements 31.1% 24.4% 31.2% 31.5%

% change compared to corresponding previous period

The entry of new players has not in any way significantly reduced HDFC’s
domination in terms of volume. However, the increased competition has led

42
to a decline in interest spread (the difference between interest income
earned and interest paid). Over the last couple of years HDFC’s spread has
shrunk from 2.1% in financial year 1997 to 1.8% in financial year 2000.
When it comes to containing risk, the company’s track record is among the
best in the financial sector. During the financial year 2000, HDFC has
reduced the quantum of loans where payment was in arrears to just 0.9% of
its portfolio. This is because individuals account for nearly 70% of its total
outstanding loans. The high level of an individual investor’s personal
contribution in a house makes the possibility of default less likely.
In keeping with its tradition of playing safe, HDFC is diversifying its business.
The company has chosen the acquisition route to increase its assets and
customer base in its core business of housing finance. Its recent acquisition
of Home Trust Housing Finance and Gruh Finance will not only increase its
size but will also bring the economies of scale.
Apart from these traditional methods of growing, HDFC is also
leveraging the Internet to consolidate its business. It has picked up a stake in
various portals. These are pure investments to draw synergies for its existing
businesses. Its proposed venture with TCS for setting up call centres can
potentially provide HDFC with strong revenue streams. The venture is aimed
at cornering a share of $10 bn IT (information technology) enabled services
market where India has a significant cost advantage. While its investments in
new business may not yield immediate returns, they are likely to enhance
HDFC’s returns on equity over the medium term. It will also help in
expanding its customer base and provide more credence to its cross-selling
efforts.
HDFC derives an edge in all its forays because of its wide reaching
marketing and distribution network (over 44,000 agents). Once it has the
entire range of products (post insurance), the company has plans to enter
into distribution of financial products by leveraging its own as well as the
network of HDFC Bank. The company can leverage its existing channels to
provide the products and services in the areas of Infotech services, asset

43
management, life insurance and commercial banking. This over a longer
time frame can emerge as a major source of revenue for the company.
The company’s proactivity and brand name, has always accorded it
premium valuations on the bourses. But the evidence of increasing
competition (from SBI and ICICI) may lead to slow down in its growth, in turn
affecting its current valuations. Nevertheless, if its investments in new
ventures like call centres, mutual funds, insurance and Internet initiatives
click, then HDFC looks set for higher growth and hence, valuations. Also one
should not ignore the value of its 27% stake in HDFC Bank (India’s No. 1
private sector bank), which will pay rich dividends to the company.

GRAPH:-3.3

44
BUSINESS OBJECTIVES:- The primary objective of HDFC is to enhance
residential housing stock in the country through the provision of housing
finance in a systematic and professional manner, and to promote home
ownership.
Another objective is to increase the flow of resources to the housing sector
by integrating the housing finance sector with the overall domestic financial
markets.

ORGANISATIONAL GOALS:- HDFC's main goals are to :-

45
a) develop close relationships with individual households,
b) maintain its position as the premier housing finance institution in the
country,
c) transform ideas into viable and creative solutions,
d) provide consistently high returns to shareholders, and
e) to grow through diversification by leveraging off existing client base.

In addition to home building loans, HDFC also offers home extension, home
improvement and home conversion loans. It also helps to identify and value
properties. HDFC also offers depository services in form of term deposits.

Types of Products offered

HDFC provide loans to meet all your requirements for you to make that
house a home.
• Home Improvement Loan

• Home Extension Loan

• Loans to professionals for office or clinic.

• Home Equity Loans (Loan Against Property)

• Loan against Rent receivables

• Short Term Bridging Loan.

• Loans to professionals for non-residentials premises loan

46
Key Associates and Subsidiaries: - These are:-

HDFC BANK:-
• 23.26% owned by HDFC(inclusive of warrants)

• Market Cap US $ 11 billion

• ADRs listed on NYSE

• In February 2008, HDFC Bank board approved the merger with

Centurion Bank of Punjab {CBOP} (1 share of HDFC Bank for 29
Shares of CBOP)

• 1,412 branches, 528 cities, 2,890 ATMs

• Over 12 million customer accounts

• Key business areas

_ Wholesale banking Retail banking Treasury operations

• Financials (as per Indian GAAP) for the half year ended Sept 30,
2008
– Total net revenues: Rs 48.26 bn, increase of 51% over previous
year
– PAT: Rs 9.92 bn, increase of 44% over the previous year

HDFC Standard Life Insurance Company Ltd. (HDFC-SL) :-

47
Structure: - Strong and stable partnership:-
• Tie up with Standard Life Assurance Company, U.K.
• HDFC holds 72.26% of the equity of HDFC-SL
Products: - Diversified product portfolio covering all life stages and needs:-
• Offers 20 individual products and 5 group plans along with 5 optional
riders
• Offers 8 fund options with market linked products

Premium income and growth: - Values driven growth:-

Total premium income of Rs. 48.59 bn for FY 07-08 (Previous year Rs 28.56
bn); reflecting a growth of 70% Q1 08-09 growth in total premium of 34%
over Q1 07-08 Funds under management of group new business increased
by 8% in as at June 30, 2008 as against the previous year.
Coverage: - Committed to increasing coverage in an under-insured
market :- Achieved a total sum assured of Rs. 33.12 bn in respect of 0.25
million lives covered in Q1 09 taking the cumulative sum assured to Rs.
907.5 bn covering over 3.66 million lives Claims other than
withdrawals/surrenders amounted to Rs 0.09 bn .

Distribution: - Diversified distribution network to cater to customer

preference: - HDFC network is used to cross sell by offering customized
products Operates out of 575 offices across the country serving over450
locations Network of over 1,62,000 financial consultants, 379 corporate
agents and other sales intermediaries .

Market share: - Market share of 7.3% (private sector) and 4.7% (overall) in
terms of Effective Premium.

Key performance indicators and business practices: -A diversified

distribution mix including the tied agency and alternate channels

48
 • Banks, brokers, telemarketing, direct sales force Tied agency
contributed 64% effective premium in Q1 09 Strong bank assurance
tie-ups with public, private, co-operative and foreign banks amongst
the leading players in the pensions segment Leveraging technology to
strengthen processes.
• Workflow system awarded the best technology innovation
• Web based facility to service customers and channel partners
HDFC ASSET MANAGEMENT:-

• Tie-up with Standard Life Investments (SLI)

• HDFC holds 60% of HDFC Asset Management
• HDFC MF offers 34 equity and debt oriented products
• Earned a Profit after Tax of Rs 1.18 billion for FY08; Return on Equity:
75%
• Paid a dividend of 150% for FY08 to equity shareholders
• Total assets under management (AUM) as at September 30, 2008,
stood at Rs. 647 bn which is inclusive of portfolio management and
advisory
Services of Rs. 170 bn.
• Equity assets as a proportion of the mutual fund’s AUM is 35%.

HDFC PROPERTY FUND:-

• Launched in March 2005

• First Scheme: HDFC India Real Estate Fund
– Fund corpus: US $ 250 million – fully invested
– Domestic, 7 year close ended fund
– Funds managed by HDFC Venture Capital Limited
• HDFC International Fund
– Fund Corpus: US$ 800 million
– International, 9 year close ended fund

49
 – Targeted at premier institutions and funds across the world
Interested in taking an exposure in Indian real estate.
HDFC ERGO GENERAL INSURANCE COMPANY LTD:-

• HDFC holds 74% and ERGO (Germany) holds 26%

• The company offers Auto Insurance, Home Insurance, Group Accident
Insurance, Group Travel Insurance, Commercial Insurance which
includes Fire and Marine and Specialty Insurance Products like
Directors & Officers Liability .
• Achieved Gross Written Premium of Rs. 2.4 bn.
• Operates out of 28 locations across the country
• HDFC network is used to cross sell Home Insurance & Accident
Insurance
• HDFC and HDFC Bank database is used to cross sell Accident
Insurance.

TABLE:-3.4
CONSOLIDATED EARNINGS:-
(As at March 31, 2008)

HDFC consolidated

Return on Equity 27.8% 28.2%

Return on Average Assets 2.7% 2.7%

Earnings per share (Rs) 85 95

Profit after Tax (Rs in billion) 24.36 27.13

Total Assets (Rs in billion) 810.99 925.83

50
DISTRIBUTION NETWORK: - HDFC’s distribution network spans 254 outlets
that include 54 offices of HDFC’s distribution company, HDFC Sales Private
Limited (HSPL). In addition, HDFC covers over 90 locations through its
outreach programmes. Distribution channels form an integral part of the
distribution network with home loans being distributed through HSPL, HDFC
Bank Limited and other third party direct selling associates.

To cater to non-resident Indians, HDFC has offices in London and Dubai and
service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Al
Khobar, Jeddah and Riyadh in Saudi Arabia.

51
HDFC HOME LOAN ADVANTAGE :-
• Home loan counselling sharing over 30 years of home loan experience
• Door step service
• Helps in finding Dream home
• Wide Product Range
• Multiple Repayment Option
• Wide Network of financing
• Post disbursement service
• Loan repayment option
AWARDS & ACCOLADES:-

• Goldman Sachs has listed HDFC as one among top 7 financial services
organization in 2008.
• HDFC ranked among the top 3 Best Managed Companies in India by
Finance Asia in 2007
• Selected as the best Indian company in the FIs / NBFCs / Financial
Services sector at the Dun & Bradstreet – American Express Corporate
Awards 2006 and 2007.
• Best Investment Management Company in India by EUROMONEY 2007
• HDFC was awarded a rating of 4 out of 5 in Karmayog's ‘Corporate
Social Responsibility Ratings’ in 2007.
• HDFC is featured in the Limca Book of Records 2006, for the landmark
achievement of Rs. One trillion in home loan approvals
• HDFC was awarded the Gold Shield in the Finance Sector by ICAI for
excellence in Financial Reporting in 2005. This is the 14th time HDFC
has been selected for this award.
• HDFC has been awarded the 'Business Superbrand' status.
• HDFC has been awarded the 'Best Home Financier' title by Outlook
Money – 2005
• Economic Times Corporate Citizen of the Year Award - November 2004.

52
 FUTURE: - HDFC has always been market-oriented and dynamic with
respect to resource mobilisation as well as its lending programme. this
renders it more than capable to meet the new challenges that have
emerged. Over the years, HDFC has developed a vast client base of
borrowers, depositors, shareholders and agents, and it hopes to capitalize on
this loyal and satisfied client base for future growth. Internal systems have
been developed to be robust and agile, to take into account changes in the
volatile external environment. HDFC has developed a network of institutions
through partnerships with some of the best institutions in the world, for
providing specialized financial services. Each institution is being fine-tuned
for a specific market, while offering the entire HDFC customer base the
highest standards of quality in product design, facilities and service

53
54
COMPARATIVE STUDY OF DISBURSEMENT OF HOME LOANS
BY COMMERCIAL BANKS

4.1 - Disbursement of Home loans by different banks:-

HDFC LTD :-

Years No. of Home loan Disbursed

Home loan (in crore Rs.)
account
Distributed Recovered Balance
holders.

2004-05 700 90.07 63.05 27.02

2005-06 950 120.00 91.20 28.8

2006-07 1130 144.67 127.31 17.36

2007-08 1435 180.33 165.90 14.43

2008-09 1594 240.00 228.12 11.88

Interpretation:-
On the above table, it is evident that there are increase in No. of
account holders from 700 to 1594 in the year 2008-09. The loan amount
distributed among home loan account holder has also increased from
Rs.90.07 crore in 2004-05 to Rs.240 crore in 2008-09. The recovery
procedure for home loans is also strengthening due to increment in
recovered amount, i.e. Rs.63.05 crore to Rs.288.12 crore. So it nut shall

55
there are upward trend in number of accountholders and disbursement of
home loans.
Punjab National Bank :-

Years No. of Home loan Disbursed

Home (in crores Rs.)
Distributed Recovered Balance
loan
account
holders.
2004-05 810 120.15 97.28 22.87

2005-06 950 183.26 150.00 33.26

2006-07 1120 213.65 185.86 28.05

2007-08 1433 240.87 231.07 9.80

2008-09 1500 265.15 265.05 9.10

Interpretation:-

The Punjab National Bank is Public sector Bank. It comes second after
State Bank of India in its branch location and expansion. From the Table, the
figures show that there are increasing trend in customer base from 810 in
the year 2004-05 to 1500 in the year 2008-09. The bank also show
enhancement in loan amount up to Rs.265.15 crore in the year 2008-09. The
recovery process of loans in past is slow but now it is increasing.

56
Standard Chartered Bank :-

Years No. of Home loan Disbursed

Home loan (in crores Rs.)
Distributed Recovered Balance
account
holders
2004-05 106 6.21 5.27 0.94

2005-06 130 11.55 10.16 1.38

2006-07 154 17.06 14.35 2.70

2007-08 180 20.09 18.68 1.41

2008-09 260 24.10 23.91 0.48

Interpretation:-

The standard chartered bank is a private sector bank. It has also

upgraded its position in banking sector in DEHRADUN. The figures shown in
table reveals that there is upward shift in customer base of Bank from 106
customers to 260 customers. The bank has also increased its share in
housing finance by distributing Rs. 24.10 crores in 2008-09. The recovery
procedure of Home loan is very sound.

57
ICICI BANK:-

Years No. of Home loan Disbursed

Home (in crores Rs.)
Distributed Recovered Balance
loan
account
holders
2004-05 650 104.33 98.12 6.21

2005-06 853 123.24 105.00 18.24

2006-07 1019 150.65 133.46 17.19

2007-08 1132 176.75 144.65 32.10

2008-09 1434 224.00 209.16 14.84

Interpretation :-

The amount reveal that there is tremendous increase in Home loan

accountholders. The amount distributed as home loan is also increased from
Rs. 104.33 in 2004-05 to Rs. 224 crore in 2008-09. But the recovery
mechanism of the Bank is not so good that’s why the outstanding amount
shows fluctuating trend.

58
 4.2 -COMPARATIVE STUDY OF DISBURSEMENT OF HOME LOANS BY
COMMERCIAL BANKS:-

There are number of schemes and products, offered by commercial

banks to attract the customers. The comparison among different commercial
banks which offer home loans in regard of Disbursement of home loans are
as:-

No. of Home loan account holders ;-

Table 5.2(a)

Years HDFC LTD Punjab Standard ICICI

National chartered Bank
Bank Ban
2004-05 700 810 106 650

2005-06 950 950 130 853

2006-07 1130 1120 154 1019

2007-08 1435 1433 180 1132

2008-09 1594 1500 260 1434

Average of No. of accounts holders: - Total of home loan customers

59
 = --------------------------------------
No. of year

Table 5.2 (b)

Name of Bank Average (Rs) Percentage of

Accountholders
HDFC LTD 1109 32

Punjab National Bank 1163 34

Standard Chartered 166 5

Bank
1018 29
ICICI BANK
Total 3456 100

60
GRAPH:- 4.2

Home loan holders of HDFC LTD and commercial

banks

Interpretation:-

The figure reveals that HDFC LTD is having large number of home loan
accountholders. So it ranks first among other banks. But government sector
PNB is not behind so much with 31% also market leader. The banks have
shown increase in their customers base from 2004 to 2008.but HDFC LTD
comes as market leader in the home loan cases.

61
 Home loans distributed by HDFC and Commercial banks:-

Table 4.3 (a)

Years HDFC LTD Punjab Standard ICICI BANK

National chartered
Bank Bank
2004-05 120.15 90.07 6.21 104.33

2005-06 183.26 120.00 11.55 123.24

2006-07 213.65 144.67 17.06 150.65

2007-08 240.87 180.33 20.09 176.75

2008-09 265.15 240.00 24.10 224.00

(Rs.in
crore)

Average of home loans granted

Total home loans granted

= ---------------------------------
No. of years

62
 Table. 4.3 (b)

Name of Bank Average (Rs) Percentage of home

loans granted (Rs in
crore)
HDFC LTD 204.62 39

Punjab National Bank 155.01 29

Standard Chartered Bank 15.80 3

ICICI BANK 155.79 29

Total 531.22 100

To understand the comparison more effectively and closely, it has been

shows
Diagrammatically as follows:-

63
 GRAPH:- 4.3

Home loans granted by HDFC LTD and

commercial banks

Interpretation:-

There is no doubt that every bank tries to maximize its home loan
disbursement. But on the basis of data it is concluded that HDFC LTD shows
high average of loan grants Rs. 20.62 crore as compared to ICICI, standard
charted bank and PNB respectively. Rs155.01, Rs. 15.80 and Rs. 155.79
crores. On this analysis the HDFC LTD are higher loan provider as compared
to other sector banks.

64
Recovery of Home loans:-

Table4.4 (a)

Years HDFC Punjab Standard ICICI BANK

BANK (Rs National chartered (Rs in
in crore) Bank( Rs Bank (Rs in crore)
in crore) crore)
2004-05 97.28 63.05 5.27 98.12

2005-06 150.00 91.20 10.16 105.00

2006-07 185.86 127.31 14.35 133.46

2007-08 231.07 165.90 18.68 144.65

2008-09 256.05 228.12 23.91 209.16

Average recovery of home loans

Total home loans recovered

= ----------------------------------
No. of years

65
 Table 4.4 (b)

Name of Bank Average (Rs) Percentage of home

loans recovered( Rs
in crore)
HDFC LTD 184.05 39
Punjab National Bank 135.21 30
Standard Chartered 14.47 3
Bank 138.08 28
ICICI BANK

Total 471.80 100

It is more clear with the help of this diagram:-

GRAPH:- 4.4

66
 Home loans recovered by HDFC LTD and
commercial banks

Interpretation:-

In the previous years the recovery process of granting loans are very
unorganized and inefficient. So there are less recovery of home loans by the
commercial banks. But it is evident from the table that every bank whether
public or private showed increase HDFC LTD has the greatest recovery of
home loans i.e. 39%, thereafter Punjab national bank recovered the 30% of
sanction amount. The standard chartered bank is having lowest recovery of
their granted amount as home loans.

Outstanding Balance :-

Table 4.5 (a)

67
Years HDFC LTD Punjab Standard ICICI BANK(Rs
(Rs in National chartered in crore)
crore) Bank(Rs in Bank(Rs in
crore) crore)
2004-05 22.87 27.02 0.94 6.21

2005-06 33.26 28.8 1.38 18.24

2006-07 28.05 17.36 2.70 17.19

2007-08 9.80 14.43 1.41 32.10

2008-09 9.10 11.88 0.48 14.84

Average of balance due

Total of Balance due in 5 years

= --------------------------------------
No. of years

Table 4.5 (b)

Name of Bank Average Percentage of

(Rs) balance due (Rs in

68
 crore)

HDFC LTD 20.61 34

PNB 19.89 33

Standard Chartered Bank 1.38 2

ICICI BANK 17.72 31

Total 59.15 100

Average of one bank

%age = --------------------------- x100
Total Average of Banks

The diagrammatically presentation of data is as:-

GRAPH:- 4.5

69
 Balance due on home loans by HDFC LTD
and commercial banks

Interpretation:-

From the above table and figure it shows that standard chartered bank has
been less outstanding balance among other banks. The HDFC LTD got high
balances due to large customer base, not proper recovery process and lack
of modernisation of activities. The public sector bank PNB is having more
balance due i.e. 33% as compared to standard chartered bank and icici bank.

70
ANALYSIS & INTERPRETATION

71
The analysis is based on the responses given by customers through
questionnaires.

AGE GROUP OF SURVEYED RESPONDENTS

TABLE 5.1:

Age group No. of Respondents

18 - 25 years 80
26 - 35 years 64
36 - 49 years 30
50 - 60 years 20
More than 60 years 6

CHART-5.1:

Analysis:- From the chart above we find that 47% of the respondents fall in
the age group of 18 – 25 years, 25% fall in the age group of 26 – 35 years
and 17% fall in the age group of 36 – 49 years.
Therefore most of the respondents are relatively young (below 26 years of
age). and 6% respondent’s age are 50-60 years and 2% respondent’s age
are 60 to above years.

GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

TABLE-5.2
Sr. No. Category No. of Percentage
Respondents
1 Married 140 70%
2 Unmarried 60 30%
Total 200 100%
Base 200
respondents

72
 CHART-5.2

Interpretation
From the table and graph above it can be seen that
➢ 70% respondent’s are married.
➢ 30% respondent’s are unmarried.
Educational qualification of respondent’s

TABLE-5.3
Sr. No. Category No. of Percentage
Respondents
1 Under graduate 50 25%
2 Graduate 80 40%
3 Post graduate 70 35%
Total 200 100%
Base
200 respondents

CHART-5.3

Interpretation
From the table and graph above it can be seen that
➢ 25% respondent’s are under graduate.
➢ 40% respondent’s are Graduate.
➢ 35% respondents are Post graduate.

CUSTOMER PROFILE OF SURVEYED RESPONDENTS

73
 TABLE 5.5:
Customer profile No. of respondents
Student 15
Housewife 10
Working Professional 100
Business 40
Self Employed 20
Government service employee 15
Chart-5.5

Interpretation
From the table and graph above it can be seen that:-
51% of the respondents are working professionals, 22% are into business
and 11% are self-employed, 11% of the respondent’s are government
service employee and 3% of the respondents are student and 2% of the
respondents are house-wife.

ANNUAL HOUSE HOLD INCOME?

TABLE-5.6

Sr. No. Category No. of Percentage

74
 Respondents
1 Less than 2 lacs 98 49%
2 Between 2 to 5 62 31%
lacs
3 Between 5to 8lacs 30 15%
4 More than 8 lacs 10 5%
Total 200 100%
Bas
e 200 respondents
CHART-5.6

Interpretation
From the table and graph above it can be seen that
➢ 49% respondent’s annual household income is less than 2 lacs.
➢ 31% respondent’s annual household income is between 2 to 5 lacs.
➢ 15% respondent’s annual household income is between 5 to 8 lacs.
➢ 5% respondent’s annual household income is more than 8 lacs.

Do you know about HDFC housing development finance corporation

LTD?
TABLE 5.7:

Category No. of Respondents

Yes 164

No 36

75
 CHART:-5.7

Awareness about HDFC LTD

Interpretation:-
From the table and graph above it can be seen that
➢ 91% respondent’s are known about HDFC LTD
➢ 9% respondent’s are not known about HDFC LTD
Table 5 .8:-

Reasons for getting the home Loan

Sr.No. Number of Reasons Percentage(%)

a. Non-availability of funds 36

b. Reluctancy to pay cash in 35

one go
c. Tax benefit 24

d. Any other 5

76
 GRAPH:- 5.8

Interpretation:-
To interpret the response of the questions, the figures shows that most
of the customers find the problem in availability of funds i.e. 36% and very
less number of customers found problem in paying cash in one go is 35%,
customers get housing loan for tax benefits is 24%. This was the expected
response because a large number of people find a problem of availability of
funds which works as an obstacle in owning a dream home.
In today's life, people hardly earn both means and ends of life and they
don't have much of money to buy a home or a land to construct house
because of cost of property. So, they take the advantage of home loans
provided by different banks at different terms feasible to the customers.
There are very less number of people, who don't own home even when they

77
have sufficient funds and they take the advantage of home loans because
they don't want to pay huge cash in one go.
On the basis of study, it is concluded that most of people lack of
money in fulfiling their dreams and few of them were reluctant to pay cash in
one go and wanted to pay their home loans slowly in installments.

Table-5.9

From where you have got your home loan?

Name of Banks / company (%)Percentage of customers

HDFC LTD 55

Punjab National Bank 15

Standard Chartered Bank 07

ICICI BANK 20

Any other 03

To understand the response more effective and closely, it has been showed
diagrammatically as follows :-

GRAPH:- 5.9

78
 From where you have got your home
financed

Interpretation:-
The analysis showed that a large number of customers prefer HDFC
LTD as compared to others. The data shows that 7% of customers took loan
from Standard Chartered Bank, 20% of customers from ICICI BANK, 15%
Customers took loan from Punjab National Bank, 55% of customers took loan
from HDFC LTD and a 3% of customers fall under the category of 'Any other'
which included State Bank of India, Canara Bank, Punjab and Sind Bank, etc.
The data shows that most of people prefer HDFC LTD compared to
public sector banks and other private banks. This is because of the extra
services provided by HDFC LTD. However, there is less difference in figures
of ICICI Bank and Punjab National Bank. But there is considerable difference
in figures of the two private sector banks i.e. ICICI bank and Standard
Chartered Bank. As ICICI is the market leader in the home loans sector. This
may be the reason for such difference in Standard Chartered Bank's
percentage and ICICI Bank's percentage. Another reason for specialized
services in home loans, more amounts of loans, and efficient query
handling.

79
 However, the analysis showed that the people prefer HDFC LTD for
home loan because of their services and excessive feat compared to other
banks.

Table-5.10

Sources of information about Home Loans Scheme?

Sources of information (%)Percentage of customers

Newspapers 49

Magazines 16

Banners/Hoardings/Pamphlets 11

Word of mouth 20

Any other source 04

CHART:-5.10 percentage of source of information about home loans

scheme

80
 Sources of information about Home Loans Scheme

Interpretation:-
The data shows that around 20% of customers got information from
source of 'Word of Mouth' which includes information from friends, relatives,
colleagues etc. 49% of customers got information from newspapers, only
16% of customers from magazines and 4% of customers got information
about home loans schemes under 'Any other source' and 11% through
Banners/ Hoardings/Pamphlets .

Table-5.11

Opinion about the services of HDFC LTD?

Services of HDFC Percentage of customers agreeing

LTD

81
 Strongly Agree Neutral Disagre Strong
agree e ly
disagr
ee
a. Professionally 86% 10% 4% - -
managed

b. Reliable & 67% 33% - - -

transparent

c. Socially responsible 75% 10% 15% 4% -

d. Customer care 20% 68% 8% - -

e. Query handling 20% 76% 4% - -

GRAPH-5.11

Opinion of customers about HDFC LTD

82
Interpretation:-

Customers from HDFC LTD are quite satisfied from their services like
query handling and customers social responsibility of banks towards
customers and professionally managed services. They don't give so
good response to reliability and transparency services of banks. So,
customer's satisfaction level toward HDFC LTD services is lightly
satisfied.

Table-5.12

83
 Opinion of customers about home loan schemes?

HDFC LTD :-

Services of Percentage of customers agreeing

HDFC LTD Strongly Agree Neutral Disagr Strongly
agree ee disagree
a. Amount of 60% 35% 5% - -
loan
b. Legal 42% 45% 14% - -
formalities
c. Interest rates 32% 56% 12% - -

d. Repayment 26% 64% 10% - -

options
e. Security 20% 32% 48% - -
demanded
f. Installments 55% 40% 5% - -

g. Services 45% 30% 18% 6% 1%

h. Processing for 55% 24% 18% 3% -

sanction of loan

GRAPH:- 5.12

Percentage of satisfaction level of customers of HDFC LTD

84
Interpretation:-

The analysis shows that the customers of HDFC LTD gave 60 percent of
amount of loan and legal proceedings, 56% to interest rates, 45% to
proceedings and services, 55% to installments. So, customer of HDFC LTD
didn't give response regarding the services of the bank / company except to
the amount of loan and legal formalities.

PROBLEMS FACED BY CUSTOMERS IN AVAILING HOME LOANS

85
 There are everything in the world has good or bad points. No doubt
banking industry/ company has made many efforts to enhance the customer
satisfaction but customer still faced some problems. These are high
lightened as below:

1) The customer does not have proper knowledge about different home
loan products so they face problem in making a good deal.

2) There are procedural delays, which harass the customers lot. This
will crush the curtsy of customers to avail the home loan.

3) The attitude of bank employees some times non cooperative and it

creates a hurdle in building trust and Confidence among customers about
banks.

4) The banks do not take into account the paying capacity of

customers. So some customers are not able to get amount of loan needed by
them.

So above discussed are the problems which faced by customers while

availing home loans.

86
CHAPTER-6

87
 FINDINGS

1. HDFC LTD is having good brand image in the minds of customers.

2. Majority of the people have got loans from HDFC LTD only
3. Most of the customers are not aware of the products of HDFC home
loans
4. Some of the customer’s felt that the interest rates are some what high
5. Some of the customer not having good faith on private banks like
Standard chartered bank, HSBC bank etc.
6. Most of the people directly go to HDFC to apply a home loan
7. Some of the customer of HDFC already benefited through HDFC home
loan products and services
8. HDFC LTD is providing good services to their customers.
9. ) The interest rates also some what high when compare to other
banks

88
 SUGGESTIONS

These suggestions have been discussed as follows:-

1) To increase their customers, the HDFC LTD should provide

specialized services in this sector. These services can be such as proper
guidance to the customer regarding the processing of loans, especially for
the customers who are illiterate.

2) To satisfy their customers and for good dealings in future, the HDFC
LTD should make prompt disbursement of loan amount to the customers so
that they can buy or construct their dream home as early as possible.

3) The HDFC LTD should use easy procedure, or say, less lengthy
procedure for the sanctioning of loan to the customer. There should be less
number of legal formalities, in case this exists, then, these should be
completed in less time. This will be helpful in attracting more customers.

4) Although the interest rates on specific norms, yet customers seek

less interest rate which can lower their cost of house. So banks should try to
lower their interest rates. Needles to say, that the bank which is having lower
interest rates, have the maximum clients for loans.

5) HDFC LTD provide loan according to the repaying capacity of the

customer and his/her eligibility. Due to which, some customers are not able
to get amount of loan needed by them. So, the HDFC LTD should soften their
norms regarding the loan amount.

89
 6) Create awareness: The Company has to take care of awareness
creation about the products and services among the customers.

7) Charges: The Company has to reduce the mortality and

administration charges.

8) The company has to reduce their interest rates on home loan

products and services.

9) The company has to identify the potential customers.

10) Company should consider the present competition and should act
according to the customer needs.

CONCLUSION

1) In my study we came to know that many peoples are interested to take a

home loan from HDFC LTD to construct their homes.
2) Home loans have long period when compare to other personal loans and
other loans. So peoples are confused to take a home loan.
3) Even though the interest rates are high peoples are willing to take a loan
from HDFC LTD due to certain reasons.
45) The loan sanction process is low when compare to other banks.
6) The disbursement process very effective as it time when compared to
other banks

90
 Finally the whole research was carried out in a systematic way to reach
at accurate results. The whole research and findings were based on the
objectives. However, the study had some limitations also such as lack of
time, lack of data, non-response, reluctant attitude and illiteracy of
respondents, which posed problems in carrying out the research. But proper
attention was made to Carry out research in proper way and to make
accurate conclusion for the HDFC LTD which may beneficial for banks to
enhance their customer base.

91
 REFERENCES
REVIEWS

➢ Berstain David(2008), “Home equity loans and private mortgage

insurance: Recent Trends & Potential Implications”, Vol.3 No.2, August
2008, Pp. 41 - 53
➢ Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House
Price”.Journal of Housing Economics Vol. 4, No. 3,pp 27 – 34

92
 ➢ Fanning (1982), “The Demand for Home Mortgage Debt” Journal of
Urban Economics, Vol 11 No 2, November, pp. 770-774
➢ Godse (1983), “looking a fresh at banking productivity”, Journal of Real
Estate Literature, Vol. No. 13, Page 141 to 164.
➢ Haavio, Kauppi(2000) , “Residential Lending to Low-Income and
Minority Families: Evidence from the 1992 HMDA Data," Federal
Reserve Bulletin,Vol no 80(2), December 2000 Pp-79-108
➢ Kulkarni (1979), “Development responsibility and profitability of banks”
Journal of Economic Perspectives, Vol 9 No 1 ,pp. 26-32.
➢ La courr, Micheal(2007) , “Economic Factors Affecting Home Mortgage
Disclosure Act Reporting” The American Real Estate and Urban
Economics Association, Vol.2 No. 2 May 18, 2007, Pp. 45 -58
➢ La cour Micheal(2006) , “The Home Purchase Mortgage Preferences Of
Lowand-Moderate Income Households”, Forthcoming in Real Estate
Economics , Vol 18, No 4 , December 20, 2006, p. 585.
➢ Vandell ,kerry D(2008), “Subprime lending and housing bubble:tail wag
dog?”International Journal of Bank Marketing, vol 21,no 2, pp. 53-7
➢ Brochure on home loans from HDFC LTD

NEWS PAPERS
➢ The Times of India
➢ Financial Express

WEB PAGES:-

http://www.hdfcindia.com/

http://www.hdfcindia.com/others/popup/news/hdfc_fin_result_june_30_08.
html

www.hdfc.com

93
http://www.iloveindia.com/real-estate/housing-finance-
companies/hdfc.html

http://www.loansnews.info/Home-loan/hdfc-home-loans/

http://www.hdfcindia.com/loans/hm-loan-documents.asp

http://www.thinkplaninvest.com/2009/01/hdfc-will-cut-home-loan-rates/

http://www.suncorp.com.au/suncorp/personal/home_loans/tips/faq.aspx

http://investing.businessweek.com/research/stocks/people/people.asp?
ric=HDFC.BO
http://www.economywatch.com/companies/forbes-list/india/housing-
development-finance-corporation.html

http://www.hdfcindia.com/loans/home-loan.asp

http://docs.google.com/gview?
a=v&q=cache:woJTMDV1HLYJ:www.hdfc.com/pdf/32AGM
%2520speech.pdf+hdfc+housing+finance+development+product&hl=en
&gl=in

http://www.munichre.com/en/press/press_releases/2007/2007_10_30_profi
le_hdfc.aspx

http://www.hdfc.com.mv/faq.htm

94
 http://ayaanbayaan.com/hdfc-ltd-financial-results-indian-gaap-for-the-
period-april-to-june-2009/

http://www.valuenotes.com/press/pr_HDFC_250ct05.asp?
ArtCd=70013&Cat=C&Id=100

QUESTIONNAIRE

Dear Sir/ madam

I am D.V.Narayana Reddy doing MBA from Osmania University. I m

preparing a project on A STUDY ON HOME LOANS. For this I have
designed a Questionniare to know your views and satisfaction level of home
loans .please fill the given as per your thinking and experiences with this. I
will be thankful to you for this.

95
Name: ………………………………………………………………………..
Address:

……………………………………………………………………..
Contact No :®………………( O)……………… (M)
………………………
City: ………...............Pin: ………………….State:
……………………….

1. Name: ____________________

2. Age:
(a) 18-25 years (b) 26-35 years (c) 36-49 years
(d) 50-60year (f)more than 60 years

3. Marrital Status?
(a) Married (b) Un married

4. Educational qualification of respondent’s?

(a)Under graduate (b) Graduate

(c) Post graduate

5. occupation of respondents?

(a) Student (b) Housewife (c) Working

Professional

96
 (d) Business (e) Self Employed (f) Government service
employee

6. What is your Annual Household Income?

(a) Less than 2 lacs (b) Between 2 to 5 lacs

(c) Between 2 to 5 lacs (d) More than 8 lacs

7. Do you know about HDFC housing development finance corporation LTD?

(a) Yes (b) No

8. Reasons for getting the home Loan?

(a) Non-availability of funds (b) Reluctancy to pay cash in one go

(c) Tax benefit (d) Any other

9. From where you have got your home loan?

(a) HDFC LTD (b) Punjab National Bank (c) Standard Chartered Bank
(d) ICICI BANK (e) Any other

10 Sources of information about Home Loans Scheme?

(a) Newspapers (b) Magazines (c) Banners/Hoardings/Pamphlets

(d) Word of mouth (f) Any other source

97
11 Opinion about the services of HDFC LTD?

(a) Strongly agree (b) Agree (c) Neutral (d) Disagree

(e) Strongly disagree

12 Opinion of customers about home loan schemes?

(a) Strongly Agree (b) Agree (c) Neutral (d) Disagree

(f) Strongly disagree

18. Did you face any problem after sanction of loan?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

THANKS

98