HDFC ( Housing Development Financial Corporation)

Shelter is a basic human need. Securing ownership of a house can raise the welfare of the household
that lives in it and it enhances productivity, efficiency and creativity. Because housing is a large
investment, it requires long-term finance. Other factors hindering housing development are inflation,
interest rate controls, instability of financial markets and the inadequate legal system. Housing in
India has been one of the important economic activities which serve to fulfill many of the plan.
Further, housing could lead to the generation of additional savings at all levels. Housing is important
service development in both economic and welfare terms. It is not only consumption good but also
a productive investment.
It provides a wide range of products which include loans for purchase and construction of a residential
unit, purchase of land, home improvement loans, home extension loans, non-residential premises
loans for professionals and loan against property. Its repayment options include step up repayment
facility and flexible loan installment plan.

HDFC:-
1. It was formally promoted and incorporated on October 17, 1977 under the chairmanship of
Mr. H.T.Parekh. HDFC was promoted by ICICI, the International Finance Corporation and his
Royal Highness Aga Khan.
2. It is based out of Mumbai.
3. It is Indias first private bank to provide home loans.
4. HDFC is specialized in the field of housing. Its own name was constituted from three words
the interlocking of three areas of housing, finance and development. HDFC being a pioneer
organization in the field of housing finance is a leading institution in rental lending housing
finance at time when no other major player was in the field. HDFC has consistently
endeavored to provide top notch service to its customers through its extensive network of 87
offices which inter linked Nation wide, and introduced innovative value added products to
enhance both its range and quality of service.
Housing finance emerged as an industry in India after the establishment of the countrys first housing
finance company (HFC) in 1977 HDFC. The National Housing Bank was set up in 1987 as a subsidiary
of the Reserve Bank of India to regulate and provide refinance support to HFCs. As of date, there are
43 HFCs registered with NHB. Apart from HFCs, the scheduled commercial banks also extend housing
finance loans to retail and institutional segments. Banks, due to their lower cost of funds, are
increasingly giving stiff competition to HFCs. In 2009-10, the retail housing finance sector witnessed
y-o-y growth of 23.2% in disbursements, on account of favourable interest rate scenario, increase in
transaction volumes and higher property prices. Growth in the underlying housing market, improving
affordability, increased finance penetration, and favourable demographic factors would be the key
long-term drivers for growth in the housing finance market.
Primary Objective:-
1. To enhance the residential housing stock in the country through the provision of Housing
Finance in a systematic and professional manner, and to promote home ownership.
2. encouraging home ownership by providing long-term finance to households.
3. raising an environment conduct for better health and sanitation,
4. To finance mainly low and middle income group of people to
5. purchase/construct a single family dwelling unit primarily for self occupation,
6. Granting loans to the co-operative sector for housing their employees.
HDFC provides long term finance to individuals for the purchase, construction repair and renovation
of new/existing flats/houses and mortgage loans.
Aim:-
Increase the flow of resources to the housing sector by integrating the housing finance sector with
the overall domestic financial markets.
Core value:-
1. Trust
2. Integrity ( the quality of being honest and having strong moral principles)
3. Transparency
4. Professional Service
Growth strategies:-
1. Increase the Return On Equity each year in order to maximise shareholder value.
2. Consistently grow the loan book.
3. Maintain low Gross Non-Performing Assets (NPAs)
4. Maintain a low cost to income ratio by improving operational efficiency.

Home loans for individual salaried people.

Home loans are tailor made for salaried individuals as they offer an attractive rate of interest and a
longer tenure. They also provide the users with legal and technical counselling to help to make the
right home buying decision.
Feature:-
I. They offer home loans for purchase of:
1.
A flat, row house, bungalow from private developers in approved projects.
2.
Properties from Development Authorities such as DDA, MHADA etc.
3.
Attractive interest rates to make your Home Loans affordable and easier on your pocket.
4.
Customized repayment options to suit your needs.
5. No hidden charges.
II. Expert legal and technical counselling to help you make the right home buying decision.
III. Integrated branch network for availing and servicing the home loans anywhere in India.
IV. Special arrangement with AGIF for Home Loans for those employed in the Indian Army.

Home renovation loans

A home is usually said to be a reflection of its owner. With HDFC's Home Improvement Loans you can
upgrade your existing home to a contemporary design and a more comfortable living space.
Features:-
1. Loans for enhancing your home in many ways such as tiling and flooring, internal and
external plaster and painting etc
2. Available for both existing and new customers
3. Easy and hassle free documentation
4. Simple repayments through monthly instalments
5. Loans at Home Loan interest rates

Rural housing finance:-

Nothing beats the joy of having your own home, which is why HDFC help you find the perfect one.
If you are an agriculturist looking for a dream home in the rural or in urban areas, it makes it easy
to fulfill your dream. Based on the agricultural land you own and the crops you cultivate, HDFC's
Rural Housing Finance provides you with the Home Loan perfectly suited to fit your needs. They
also offer Home Loans to salaried and self-employed individuals wishing for a space of their own in
their home town or village.
Features :-
Specially designed loans to Agriculturists, Planters, Horticulturists, Dairy Farmers for:
1. Purchasing an under construction / new / existing residential property in the rural and
urban areas.
2. Constructing your home on a freehold / lease hold residential plot in the rural and urban
areas.
3. Enhancing your home in many ways such as tiling and flooring, internal and external
plaster and painting etc.
4. Extending / adding space to your home such as additional rooms etc.
5. Loans also available for the Salaried / Self-Employed for:
6. Purchasing a under construction / new / existing residential property in your village.
7. Constructing your home on a freehold / lease hold residential plot in your village.
8. Enhancing and extending / adding space to your home in many ways.
9. For Agriculturists, no mortgage of agricultural land is required to avail the Home Loan.
10. No mandatory requirement of Income Tax Returns from Agriculturists applying for the
Home Loan.
11. Longer tenure of 20 years for Agriculturists.
12. No hidden charges.
13. Customised repayment options to suit the needs.

Loan against property

HDFC's loan against property is for personal or business needs. Both residential and commercial
properties can be mortgaged for taking a loan against property.
Feature:-
I. Loans against fully constructed, freehold residential and commercial properties for:
1. Business Needs
2. Marriage, medical expenses and other personal needs
3. Transferring your outstanding loan availed from another Bank / Financial Institution
II. Longer tenure, smaller EMIs.
III. Attractive interest rates.
IV. Easy and hassle free documentation.
V. Simple repayments through monthly instalments.
VI. Integrated branch network for availing and servicing the loan anywhere in India.

Who can Apply:

1. Resident Individual
2. Minors through their Guardians
3. Domestic Company
4. HUFs
5. Registered Trust/Societies.
6. Co-operative Societies
7. Co-operative Banks
8. Association of Persons
9. Superannuation funds
10. *NRI can invest through NRO Account