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A study on HDFC Bank Ltd Loans

Submitted to: Ms. Urvashi Verma Lecturer (ASB)

Submitted by: Apoorva Mitra (B20)

Introduction
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. Vision To build a World-Class Indian Bank.

Mission Use Enabling Technology to provide valued added products and services to customers. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the banks risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. . Core Values HDFC Banks business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

Business Areas

The bank has three key business areas: 1.Wholesale Banking Services Here our target market is primarily large, blue-chip companies and to a lesser extent, emerging mid-sized corporates. For these corporates, we provide a wide range of services, including working capital finance, trade services, transactional services, cash management, etc. We are a leading provider of structured solutions, which combine cash management

services with vendor and distributor finance, for facilitating superior supply chain management for our corporate customers. We are also recognised as a leading provider of cash management and transactional banking solutions to mutual funds, stock exchange members and banks.

2. Retail Banking Services The objective of the Retail Bank is to provide our target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

3. Treasury Operations Within this business, the bank has three main product areas -

a). Foreign Exchange and Derivatives, b). Local Currency Money Market c). Debt Securities and Equities. With the liberalization of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These are provided through the bank's Treasury team. The Treasury business is responsible for managing the returns and market risk on the bank's investment portfolio. Awards: AWARDS RECEIVED IN THE YEAR 2010 The Banker and PWM 2010 Best Private Bank in India Global Private Banking Awards Economic Times Awards for Business Leader of the Year - Mr. Aditya Puri Corporate Excellence 2010 Forbes Asia NDTV Business Fab 50 Companies 5th year in a row Leadership Best Private Sector Bank

Awards 2010

The Banker Magazine

World's Top 1000 Banks

MIS Asia IT Excellence Award Best Bottom-Line I.T. Category 2010 Dun & Bradstreet Banking Overall Best Bank Best Private Sector Bank Best Private Sector Bank in SME Financing Institutional Investor Magazine HDFC Bank MD, Mr. Aditya Puri among "Asian Captains Poll of Finance 2010"

Awards 2010

IDRBT Technology 2009 Awards Winner - 1) IT Infrastructure 2) Use of IT within the Bank Runners-up - IT Governance (Large Banks) ACI Excellence Awards 2010 FE-EVI Green Highly Commended - Asia Pacific HDFC Bank

Business Best performer in the Banking category

Leadership Award Celent's 2010 Banking Innovation Model Bank Award Award Avaya Global Connect 2010 Customer Responsiveness Award - Banking & Financial Services category Forbes Top 2000 Companies Our Bank at 632nd position and among 130 Global High Performers Financial Express - Ernst & Best New Private Sector Bank Young Survey 2009-10 Best in Growth Best in strength Asian Banker Excellence Awards Best Retail Bank in India 2009 Excellence in Automobile Lending Bank M&A Integration Technology Implementation The Asset Triple A Awards Best Cash Management Bank in India

Euromoney Private Banking and 1) Best Local Bank in India (second year in a row) 2) Best

Wealth Management Poll 2010

Private Banking Services overall (moved up from No. 2 last year)

Financial

Insights

Innovation Innovation in Branch Operations - Server Consolidation Project Best Trade Finance Provider in India for 2010

Awards 2010 Global Finance Award

2 Banking Technology Awards 1) Best Risk Management Initiative and 2) Best Use of 2009 SPJIMR Marketing Business Intelligence. Impact 2nd Prize

Awards (SMIA) 2010 Business Today Best Employer Listed in top 10 Best Employers in the country Survey

Loans
Home Loans
HDFC Bank brings, HDFC home loans to your doorstep. Over 3 decades of exclusive experience, a dedicated team of experts and a complete package to meet all your housing finance needs, HDFC Home Loans, help you realize your dream. The HDFC Advantage Pioneers of Housing Finance in India with over 33 years of lending experience. Widest range of Home Loan Products. Most experienced and empowered personnel to ensure smooth & easy processing.

Counseling and advisory services for acquiring a property.

Loan from any office for purchase of home anywhere in India

Loan approval even before a property is selected Flexible loan repayment options Free & safe document storage. Home Loans Features & Benefits

Home Loan - Home loans for individuals to purchase (fresh / resale) or construct houses. Application can be made individually or jointly. HDFC finances up to 80% of the cost of the property (including the cost of the land) based on the repayment capacity of the customer. Home Improvement Loan - The interiors of any home reflect the personal preferences and tastes of its owners making it imperative to constantly upgrade to keep up with changing times. HIL facilitates internal and external repairs and other structural improvements like Painting, Waterproofing and Roofing, Plumbing and Electrical Works, Tiling and Flooring, Grills, Aluminum Windows compound walls and much more. HDFC finances up to 85% of the cost of improvement. This is however subject to 80% of market value as assessed by HDFC. Home Extension Loan - HEL for adding more space to your existing home for meeting the requirements of your growing family be it an extra bedroom for your children, a reading room for yourself or a cozy coffee corner. It is easy to extend your home anyway you like. HDFC finances up to 85% of the cost of extension. This is however subject to 80% of market value as assessed by HDFC. Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 80% of the cost /value of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 15 years. Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or Partly Floating. Flexible repayment options to suit your individual needs. Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties do not affect your family's interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise of the life assured. This pure risk plan is designed in a way that the cover decreases as you repay your home

loan making it a low cost premium insurance plan. *Insurance is the subject matter of solicitation. Automated Repayment of Home loan EMI - You can give us standing instructions to repay your Home Loan EMIs directly from your HDFC Bank Savings Account, thus, saving you the trouble of procuring, signing and tracking post-dated cheques. HDFC also offers In-house scrutiny of Property documents for your complete peace of mind. Customer privileges - If you are an existing HDFC Home Loan customer, you can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loans and Loan against securities) at lower interest rates. Home Loan PLR for Floating rate Loans

Home Loan PLR for floating rate loans has been changed since 2008 as follows 1st July 2008 0.75% + Increase 1st August 2008 1st December 2008 Net Effect 2008 6th August 2009 30th March 2011 12th July 2011 0.75% + 0.50% 1.00% + 0.25% 0.25 + 0.25 + Increase Decrease Net Increase of 1.00% has been applied w.e.f 1st December 2008 Decrease of 0.25% w.e.f September 09 EMI Increase of 0.25% w.e.f May'11 EMI increase of 0.25% w.e.f Aug'11 EMI

Home Loan Fees & Charges Description of Charges Foreclosure charges Ecbop Home Loan No prepayments allowed in first 6 months 6 months - 5 years - 1.5% of original loan amount 5 years -10 years - 0.75% of original loan amount > 10 years - No closure fee For Gold Category 6 months - 5 years - 2% of original loan amount

> 5 years - No closure fee eBOP customers : Loan repaid from own sources - no FC charges Loan repaid from other sources - regular FC charges. Charges for late payment of EMI Cheque swapping charges Bounce Cheque Charges Duplicate Statement Charges (per statement) Issue of Duplicate Provisional Interest Certificate Issue of Duplicate Interest Certificate Duplicate Balance Certificate Issue of Amortization Schedule (Duplicate) Switch from Variable to Fixed Switch from Fixed to Variable Photocopy of Documents 2% per month Rs 500/Rs. 500/Rs 100/- per page, Maximum Rs 300/Rs. 300/Rs. 300/Rs. 300/Rs. 300/Not Applicable Not Applicable Rs. 500/-

Car Loan
Features & Benefits

Covers the widest range of cars and multi-utility vehicles in India. Avail 100% finance on your favourite car** Loan repayment tenure ranging from 12 to 60 months. Borrow up to 3 times your annual salary (for salaries professionals) and 6 times your annual income (for self employed professionals)*. Speedy processing - within 48 hours. Repay with easy EMIs Attractive car loan plans - To fastrack your loan, just choose the plan that is right for you. Attractive interest rates Hassle-free documentation. Customer Priviledges If your an HDFC Bank account holder, we have special rates for you. If you have a Preferred Account or a Corporate Salary Account with HDFC Bank for more than 6 months, you can get fast approvals on your loans with minimal documentation. If you are an HDFC Bank Car Loan customer with a clear repayment of 12 months or more we can Top-Up your car loan to the extent of the original loan value. Fastrack loan with attractive car loan plans

Auto Loan Takeover Plan If you are a salaried individual holding any of the credit cards mentioned below, your loan gets processed faster.

Requirements: Facility is available to only HDFC bank account holders (CASA). All terms and conditions applicable for the used car product are applicable for the Loan take over product. Minimum 9 month old loan with any approved Financier with clear repayment track record

Advantage platinum Credit Card Plan If you are a salaried individual holding any of the credit cards mentioned below, your loan gets processed faster. HDFC Bank International Credit Card Citibank Gold Citibank Diners HSBC Gold ANZ Grindlays Gold American Express Gold Card American Express Charge Card Standard Chartered Gold Requirements:

Your card has to be atleast one year old.

You need to submit the last two billing statements. Small cars, normal funding up to three years. Funding on premium cars restricted to 70% under this plan. The plan does not include multi-utility vehicles. Contract copy and salary slip of NRI. Endorsement on passport for last 3 years. Proof of ownership of property. Post-dated cheques must be from the resident account of the borrower. No Income-Document Loan Plan Now, you can get a car loan without proof of income. Under this scheme, you get the loan amount up to 60% of the car invoice value. The tenure of loan can be a maximum of 3 years.

100% Loan Plan with Fixed Deposit Lien This allows you to take a loan against your deposit at HDFC Bank. You can get a loan for 100% of the invoice value amount with the required margin placed as a fixed deposit in HDFC Bank. Lien is marked on the specified deposit. Installments can be paid separately or out of the deposit (if deposit is large enough). NRILoans NRIs can avail of new car loans from HDFC Bank for the use of the vehicles by their relatives in India. Additional documents required are as follows : Contract copy and salary slip of NRI. Endorsement on passport for last 3 years. Proof of ownership of property. Post-dated cheques must be from the resident account of the borrower. Past re-payment history Plan for customers who have taken a car loan and have repaid that loan fully without any outstandings. Credit approval on the basis of past re-payment record. ApprovalPlan If you have an HDFC Bank Preferred Account or a Corporate Salary Account with HDFC Bank for more than six months, you can get fast approvals on your loans with minimal documentation Eligibility & Documentation SalariedIndividuals Eligibility Criteria: Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 58 years Minimum employment: 1 year in current employment and minimum 2 years of employment Minimum Annual Income: Rs 100000 net annual income

Telephone: Must at residence Documents required: Proof of Identity:Passport copy, PAN Card, Voters Id car, driving

licence( Laminated, Recent, Legible)


Income Proof:- Latest salary slip with form 16. Address Proof:- Ration card/Driving licence/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card.

Bank Statement:- Not mandatory

SelfEmployed Eligibility Criteria: Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 65 years

Minimum employment: Atleast 3 years in business Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars

Telephone: Must at residence Documents required:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving licence( Laminated, Recent, Legible)

Income Proof:- Latest ITR Address Proof:- Ration card/Driving licence/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card

Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is greater than Rs. 1.5 lacs then bank statement requirement can be waived.

PartnershipFirms Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars

Minimum turnover: Turnover Rs. 4.5 lacs

Telephone: One phone at least at business and at residence of the loan executing partner Documents required: Proof of Identity:- NA Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and the latest 2 years IT returns of the company Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/SSI registered certificate/Sales Tax certificate

Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is greater than Rs 1.5 lacs then bank statement requirement can be waived

PrivateCompany Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p a for mid-sized and premium cars

Minimum turnover: Turnover Rs 4.5 lacs

Telephone: One phone at least at business premises Documents required: Proof of Identity:- NA Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and the latest 2 years IT returns of the company Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/SSI registered certificate/Sales Tax certificate

Bank Statement:- NA

PublicCompany Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p a for mid-sized and premium cars

Minimum turnover: Turnover Rs 4.5 lacs

Telephone: One phone at least at business premises Documents required: Proof of Identity:- NA Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/SSI registered certificate/Sales Tax certificate Bank Statement:- NA Best Guide to Car Segments and Funding

Segment A:Mini B:Compact

Ex-Showroom Value (In lac) <=2.15 2.2-4.5

Funding % 80-100 90-100

Examples Maruti 800 Alto, Swift, Indica, Santro, Getz, Estillo, A-Star, Palio, i10 i20, Accent, Swift ,Dzire, Honda City, Honda Jazz, Verna, SX4, Linea, Ikon, Fusion, Optra, Fabia, Indigo Toyota Corolla, Civic, Skoda

C:Mid-Size

4.5-10.0

75-100

D:Executive D+:Premium

9.5-16.0 16.0-25.0

75-95 75-90

Ocatvia, Hyundai Elantra, Optra Magnum Honda Accord, Camry, Hyundai

Sonata,

Skoda

Laura,

Superb,

Passat, Jetta, Teana, Fiat 500 D+: Luxury MUV 25.0+ 2.20+ 75-85 75-90 Mercedes, BMW, Audi, Porche and all other imported Omni, CR-V, SUV 14.0+ 75-85 Innova, Xylo, Scorpio, Pajero, Tavera, Bolero, Victa, Safari Endeavour, Montero, X-Trail, Prado, Tucson, Captiva, Grand Vitara, Mitsubishi Outlander Funding range is indicative. Pre-approved customers could get up to 100% ex-showroom funding in segments A-D.

Loan for SMEs


At HDFC Bank we understand how much of hard work goes into establishing a successful SME. We also understand that your business is anything but "small" and as demanding as ever. And as your business expands and enters new territories and markets, you need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. That's why we at HDFC Bank have assembled products, services, resources and expert advice to help ensure that your business excels. Our solutions are designed to meet your varying needs. The following links will help you identify your individual needs.

Funded Services Funded Services from HDFC Bank are meant to directly bolster the day-to-day working of a small and a medium business enterprise. From working capital finance to credit substitutes; from export credit to construction equipment loan - we cater to virtually every business requirement of an SME. Click on the services below that best define your needs. Working Capital Finance Construction Equipment Loan Medical Equipment Finance Bill Discounting Export Credit Real Estate Initiatives Non-Funded Services Commercial Vehicle finance Short Term Finance Healthcare Project Finance Credit Substitutes Structured Cash Flow Financing

Under Non-Funded services HDFC Bank offers solutions that act as a catalyst to propel your business. Imagine a situation where you have a letter of credit and need finance against the same or you have a tender and you need to equip yourself with a guarantee in order to go ahead. This is exactly where we can help you so that you don't face any roadblocks when it comes to your business. The following are the services that will precisely tell you what we can do. Business Accounts Letters of Credit Collection of Documents Forex Desk Derivatives Desk Services to Cash Surplus Corporates Bankers to Rights/Public Issue Specialised Services HDFC Bank Trade Guarantees Cash Management Services Money Market Desk Services to Employee Trusts Tax Collection

HDFC Bank is one of the most trusted entities when it comes to specialised services like selling of precious metals to customers. Under specialised services you can also avail customised control of your value chain through our internet banking platform. Precious Metals Value Added Services There is a plethora of services that we offer under value added services. There's corporate salary account which ensures smooth payment methods to your staff. You can avail an Channel Financing

assortment of credit cards and debit cards from our merchant services. The following are the highlights of this service: Real Time Gross Settlement Reimbursement Account Custody Services HDFC Bank Business Gold Credit Card Internet Banking Internet banking is a revolutionary service under the banking sector and HDFC Bank is a forerunner in providing you with this service. We provide state-of-the-art payment gateway services to industries and companies in order to ease transaction processing. This in turn enhances the credibility of your business and makes banking extremely cost-efficient. Corporate Salary Accounts Merchant Services HDFC Bank Business Platinum Credit Card

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