A PROJECT REPORT ON

A STUDY ON HOME LOAN

PREPARED FORLIC HOUSING FINANCE LTD

JEEVAN PRAKASH BUILDING
CIVILLINES ALLAHABAD

BIRLA INSTITUTE OF TECHNOLOGY, MESRA RANCHI

EXT.CENTER: NAINI, ALLAHABAD

SUBMITTED BYDEEKSHA DWIVEDI

ROLL NO. BBA/3008/2013

GUIDED BYMR. SHARAD KUMAR SHARMA

DECLARATION

DEEKSHA DWIVEDI, a student of BBA (2013-16)

Hereby declare that the, project report entitled
Study of home loans
Is the authentic work done by me at
LIC HOSING FINANCE LTD, ALLAHABAD

Report is submitted in partial fulfillment of the requirement of the award of bachelor

of business administration (B.B.A) Degree abide by Birla institute of technology
rules.

DEEKSHA DWIVEDI
B.B.A
BIT NAINI ALLAHABAD

ACKNOWLEDGEMENT

It is a matter of great pleasure to acknowledge the guidance, enormous and cooperation extended to me from every corner, while proceeding with my internship.

I sincerely express my gratitude to Mr. Sharat Kumar Sharma (Area Manager) for
allowing me to pursue my internship in LIC HFL.

I would also like to express my gratitude to all other peoples who had extended their
helping hand directly or indirectly throughout the internship, and without whose help
my internship would not have been completed. I would also like to thank my parents
for their guidance and support. They have remained a source of inspiration for me.
Finally I would like to thank to all respondent for their helpful criticism and useful
suggestions, which contributed towards successful completion of my project.

DEEKSHA DWIVEDI
BBA
BIT NAINI ALLAHABAD

INDEX

SR

CHAPTER

PAGE

NO.
1.

EXECUTIVE SUMMARY

NO.
7

2.

INDUSTRY PROFILE & ORGANISATION PROFILE

3.

RESEARCH METHODOLOGY & DATA ANALYSIS &

48

4.

INTERPRETATION
AVTIVITY CHART

50

5.

KEY LEARNING

84

6.

CONTRIBUTION TO ORGANISATION

86

7.

QUESTIONAIRE & WEBSITE DETAIL

88

LIST OF TABLE

SR NO.

TABLE NAME

PAGE

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

RATE OF INTEREST
EMI TABLE
PERSONAL DISCUSSION FORMAT
CALCULATION SHEET FORMAT
BASIC ELIGIBILITY CHART
BASIC ELIGIBILTY CHART
BASIC ELIGIBILTY CHART
BUSINESS INCOME
INCOME FROM OTHER SOURCE TABLE
AGE GROUP
RESIDENT IS?
IF OWNED?
LOAN FOR EXTENSION & RENOVATION
PURCHASING HOUSE
HOW TO FINANCE IT
IF LOAN THEN FROM WHERE
OCCUPATION

NO.
39
47
70
71
72
72
72
73
73
74
75
76
77
78
79
80
81

18
19

ANNUAL INCOME
MOST PREFERRED ORGANISATION

82
83

20

WORK PLAN

85

LIST OF GRAPH

SR NO.

GRAPH NAME

PAGE
NO.

1
2
3
4
5
6
7
8
9
10

AGE GRAPH
RESIDENT GRAPH
IF OWNED GRAPH
LOAN FOR EXTENSION & RENOVATION
PURCHASING HOUSE GRAPH
HOW TO FINANCE GRAPH
LOAN FROM WHERE GRAPH
OCCUPATION GRAPH
ANNUAL INCOME GRAPH
MOST PREFERRED ORGANISATION GRAPH

CHAPTER-1

74
75
76
77
78
79
80
81
82
83

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

As a part of the Curriculum of the BBA Programme of the BIRLA INSTITUTE OF

TECHNOLOGY, I underwent my summer Training for the Period of ONE Month at
LIC HOUSING FINANCE LTD, civil lines, Allahabad. The aim behind is to let the
Students draw out the Difference & Similarities between the theoretical knowledge
with the actual Job conditions, so they can be able to Pursue & Cultivate Strategic
decisions making capabilities & establish themselves as capable Managers of
tomorrow. Each management student learns a lot during his three years of BBA
program. The (summer) project provides required practical training to student and
gain the practical knowledge of the topics learned in classroom and to find its relation
with the real market scenario. Someone has greatly said that practical knowledge is
far better than classroom teaching. During this project I fully realized this and come to
know about the present real world of home loan sector. It includes all the activities
involved in providing home loan products to the final customers. I am pleased to
know about the consumers wants and competitors activities in the real world of home
loan sector. The subject of my study is to analyze the present home loan sector and
products offered by LIC HFL by applying various tools like cold calling and through
direct interaction with customers. I have also done research on the customer reaction,
age group taken loan, property types, and different preferred option. his chosen LIC
housing finance & private home loan companies. The report contains first of all brief
introduction about the company. I also put forward recommendations of the
consumers and conclusions that will help LIC HFL to provide consumer satisfactory
services in the home loan sector. The project gives the live experience about the
various aspects of the management that is help full from future point of view. The
project provides the opportunity to understand the organization very closely.

CHAPTER- 2
INTRODUCTION

2.1 INTRODUCTION
The purchase or sale of a home or investment property is not only one of the most
important financial events in peoples lives, but also one of the most complex
transactions. As a result, people usually seek the help of real estate agents and brokers
when buying or selling real estate. Real estate agents and brokers have a thorough
knowledge of the real estate market in their community. They know which
neighborhoods will best fit clients needs and budgets. They are familiar with local
zoning and tax laws, and know where to obtain financing. Agents and brokers also act
as an intermediary in price negotiations between buyers and sellers. Real estate agents
are usually independent sales workers who provide their services to a licensed broker
on a contract basis. In return, the broker pays the agent a portion of the commission
earned from the agents sale of the property. Property Service Division of LIC
Housing Finance Limited deals with the same business of real estate. The need of
entering in this field was felt by LIC Housing Finance Ltd due to increasing prospects
in Real Estate business. There are many big brands namely ICICI realty, HDFC
Realty, Axis Bank Realty etc. A new line of business by the name Property services
Division is being launched across the country in selected centers . The function of the
Property services Division includes all activities involved in enabling a prospective
homebuyer select the property up to taking the possession of the same. It is thus
conceived to be a one-stop-shop for all the advisory services related to the above.
Property services division, which offers investors and builders a single transparent
platform to buy/sell office and commercial spaces and residential apartments/flats.
This Year LIC Housing Finance Celebrate on 25th Anniversary on This Year
19th June 2014. This Enjoy on All over India Celebration.

2.2 MEANING OF HOUSING FINANCE

The term housing finance is commonly referred to the loans availed by a household
for the purchase or construction of a housing unit. It involves mortgaging of the
property as collateral against which the loan has been taken. Originally, a mortgage
was said to have occurred when the owner pledged her right over an asset owned by
her as a security with the lender for availing a loan. However, as housing loans are
given under the condition of mortgaging the property for which the loan has been
availed, the term mortgage finance has become synonymous to housing finance.
Housing finance covers a wide range of issues, and the concept often varies in its
coverage across different countries; however, it has been defined mainly in terms of
residential mortgage credit.
Boleat (1985) for instance describes housing finance in terms of the flow of
funds to
home buyers.
According to Lea (2000) housing finance includes a broad array of institutional
arrangements which include both general and specialized institutions acting as
primary or secondary lenders, with the common purpose of channeling funds
from savers to households demanding housing loans.
Warnock and Warnock (2007) describe housing finance as the provision of longterm financing for house purchase.
King (2009) refers to housing finance as the funds used for building and
maintaining the housing stock of a country.
Chiquier and Lea (2009) look at housing finance as a link between multi-sector
issues which are in a continuous process of change on account of the economic,
cultural, and regulatory environment of a country

They consider housing finance as encompassing more than residential mortgage

credit and include housing developer finance, rental finance as well as housing related
micro-finance within the scope of the term housing finance. Housing finance covers a
wide range of issues, and the concept often varies in its coverage across different
countries; however, it has been defined mainly in terms of residential mortgage
credit.

CHAPTER- 3
INDUSTRY PROFILE AND ORGANISATIONAL
PROFILE

2.3 LIC Housing Finance Limited

LIC Housing Finance Ltd. is one of the largest Housing Finance Company in
India.

It provides Housing Loan for long term Finance with low Home Loan Interest
Rates. You can take a Home Loan either for purchasing a plot or for house
extension or for repair & renovation.

Vision: Complete Financial Solutions to secure your future.

Mission: To grow steadily and sustainably in our customers mind and
money space.

2.4 History of LIC Housing Finance:

Launched in 1989 as per Companies Act, 1956 LIC housing finance has grown
to be one of the largest lenders in home-finance market.

Promoted by LIC that helped in initial business functions. Finally after being
promoted as a company offering housing finance by LIC it went public in
1994.

LIC Housing Finance news state that its authorized capital stands at Rs.150
crore or Rs.150 million.

Its shares are trade only in dematerialized form at both NSE and BSE.

Its GDRs are traded at Luxembourg Stock Exchange.

Presently, according to LIC housing finance news there are over 158 marketing
units; along with a wide network of 6 regional offices and over 13 back-offices.

1989

The Company was incorporated on 19th June as a public limited company. It

was promoted by LIC of India. The Company provides housing loans to
individuals, builders, development authorities, employers organization etc.

- The Company has started various schemes: Griha Prakash a general scheme,
Griha Tara under which it accepts only Bima Sandesh Plan as Life Insurance
Corporation, Griha Shobha for NRIs and Griha Lakshmi for people to have a
second house.

1994
3,00,57,900 No. of equity shares were issued at a premium of Rs50 per share
through public issue on 15th November 1994. The allotment was as follows;

10,82,000 shares to LIC on firm allotment basis and the balance 189,75,900
shares to public (all were taken up).

1996
The Company has decided to carry out fund based and one-fund based
activities, viz., debt securitization, lease and hire purchase, renting of
properties and giving guarantee to co-operate bodies.

2000
Crisil has assigned a AAA rating to the issue of mortgage backed pass through
certificate backed by mortgages originated by the company.

2001
The Company has launched its new scheme, Griha Vikas.

2002
LIC Housing Finance Ltd has informed BSE that the Company has forfeited
1,25,300 equity shares due to nonpayment of allotment/call monies.
-LIC Housing Finance has approved for the takeover of Individual Housing
loan portfolio of GLFL Housing Finance.
-Around 25 investors subscribed to the issue of confidentially placed
debentures for a total amount of Rs.392 cr of LIC Housing Finance Ltd.
-LIC Housing Finance Ltd has decreased its interest rates on housing loan by
25-50

basis points.

-Financial Institutions have increased their stake from 0.01% to 1.96% and
Mutual Fund companies have increased their stake from 0.35% to 1.06% in
LIC Housing Finance.
-LIC Housing Finance Ltd has decreased the floating rate of interest under
individual loan scheme to 9.5% from 11%.
-LIC Housing Finance signed a deed of assignment to take over individual
housing loan portfolio of Citibank N A.
-UTI and IFCI have been removed from the list of promoters of LIC Housing
Finance.

2003
LIC Housing Finance has unveiled a new project for elderly people called LIC
HFL Care Homes.
-LIC Housing Finance Ltd has sanctioned 84,126 loans worth Rs.3265.78cr
and disbursed 76,663 loans worth Rs.2941.24cr under its Individual Loan
Scheme.
-LICHFL has mobilized Rs.280cr for 15 years at 7% rate of interest through
private placement.
-Lic Housing Finance Ltd has informed that the shares of the company have
been delisted from The Stock Exchange - Ahmedabad w.e.f December 08,
2003.

2004
Merill Lynch Capitat acquires LIC housing stake of 0.39%

-Templeton

Asset

Management

buys

37,52,362

equity

shares,

representing5.01% of LIC Housings total paid-up capital of Rs74.9 crore.

-LIC Housing Finance Ltd has informed that the shares of the Company have
been voluntarily delisted from the Delhi Stock Exchange (DSE) w.e.f.
January23, 2004.
-LIC Housing Finance shares delisted from Madras Stock Exchange
-Mr. D Krishnan appointed as Chief Executive Officer
- LIC Housing Finance Ltd. (LICHFL) one-crore global depository receipts
(GDR) issue opened on August 27.
- Lists its maiden global offerings worth .85 million at the Luxembourg Stock
Exchange successfully.
-Introduces new product that starts as a fixed rate loan but contains an option
to convert it to a Floating rate loan at the end of five years, at the then
prevailing rate.

2005
Delist from The Calcutta Stock Exchange Association Ltd (CSE) with effect
from December 09, 2004.
-LIC Housing Finance launches loan product that eliminates the requirement
of charge on house financed.
-Goldman Sachs acquires share in LICHFL

2007
LIC Housing Finance to launch FD scheme
-LIC Housing Finance to enter into reverse mortgage product.

2008
LIC Housing Finance Ltd has informed that the Board has appointed the
following persons as Directors on the Board of the Company on May 20,
2008.
-Name of the Director: Shri. D K Mehrotra For the Position of : Managing
Director.
- LIC Housing Finance Ltd has informed that the Board of Directors of the
Company has appointed following person as Director on the Board of the
Company on July 01, 2008.
- Name of the Director: Shri A S Narayanamoorthy.
- For the position of: Additional Director.
- Change effective from: July 02, 2008.
-LIC Housing Finance launches Reverse Mortgage for senior citizens.

2009-LIC Housing Finance cut interest rates for new loans by 0.5% where for
customers opting for floating rate loans between 30 lakhs and Rs.75 lakh, the
new rates will be 8.755 against 9.25%.

2010-The company is applying for a license with the Pension Fund Regulatory
Development Authority (PFRDA) to act as Aggregator under the, National
Pension System (NPS) Lite.
-LIC Housing Finance Ltd has decided to unveil a private equity fund focused
on real estate development projects.
-LIC Housing Finance on October 27 has approved a stock split in the ratio of
1:5 to boost the liquidity of its scrip.

-Company has splits its Face value of Shares from Rs10 to Rs2.

2011-Dinesh Kumar Mehrotra, Managing Director for international operations in

LIC, was appointed interim Chairman.

2012-LIC Housing Finance has said that it has begun the process of raising funds
through Qualified Institutional Placements (QIPs).

201419-06-2014 25th year completed

-LIC housing finance Last 25 year Rs.1,39,000 Crore in Home Loan
disbursement.
-They are 11000 Representatives helping Indians own homes over the last 25
years.
-They are more than 16.8 lakhs Families own homes with our support over the
Last 25 year.

2.5 COMPANY PROFILE

LIC Housing Finance Limited

Type
Public Limited
Traded as
BSE: 500253
Industry
Founded
Founder

NSE: LICHSGFIN
Real estate
19-June-1989
Life Insurance Corporation

of

Headquarter

India
Mumbai, India

s
Area served
Key people

India
S.K.

Products
Subsidiaries

Sunita Sharma (MD and CEO)[1]

Home Loans, Mortgage Loans
LICHFL Care Homes Limited,

Roy

LICHFL
Limited,
Management
Website

(Chairman)

Financial
LICHFL
Company

Services
Asset
Private

Limited
www.lichfl.com,
www.lichousing.com

LIC Housing Finance Ltd is one of the largest Housing Finance Company in India.
The company is engaged in the business of providing loans for purchase, construction,
repairs and renovation of houses/flats to individuals, corporate bodies, builders and
co-operative housing societies and has its operations within India. They provide loans
for homes, construction activities , its corporate housing schemes. Around 89% of the
loan portfolio derived from the retail segment and the rest from large corporate
clients. The main objective of the company is providing long term finance to
individuals for purchase / construction / repair and renovation of new / existing flats /
houses. The company also provides finance on existing property for business /
personal needs and gives loans to professionals for purchase / construction of Clinics /
Nursing Homes / Diagnostic Centers / Office Space and also for purchase of
equipments. The company through their subsidiaries LICHFL Care Homes Limited,
is engaged in the business of setting up, running and maintaining assisted living
community Centre /care homes for senior citizens; LICHFL Financial Services Ltd, is
engaged in the business of marketing various financial products and services, and
LICHFL Asset Management Company Ltd is engaged in business of managing,
advising , administering mutual funds, unit trusts, investment trusts and to act as
financial and investment advisors and render financial advisory services. The

company possesses one of the industrys most extensive marketing network in India.
The company is having their registered and corporate office at Mumbai. They have
7regional offices, 13 back offices and 190 marketing units across India. In addition
the company has appointed over 1241 direct sales agents (DSAs), 6535 home loan
agents (HLAs) and 782 customer relationship associates (CRAs) to extend their
marketing reach. They have set up a representative office in Dubai and 12Kuwait to
cater to the non-resident Indians in the GLCC countries covering Page Bahrain,
Dubai, Kuwait, Qatar and Saudi Arabia. LIC Housing Finance Ltd was incorporated
on June 19 1989. The company was promoted by LIC of India and went public in the
year 1994. The company is recognized by National Housing Bank and listed on the
National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE) and its
shares are traded only in Demat format. The GDRs are listed on the Luxembourg
Stock Exchange. In the period of 2001, the company launched their new scheme
called Griha Vikas. In the year 2002, the company signed a deed of assignment to take
over individual housing loan portfolio of Citibank. In the year 2003, they unveiled a
new project for elderly people called LICHFL Care Homes. The company launched
their maiden GDR issue in the year 2004. Also, they introduced flexi-fixed scheme
offering fixed rate of interest for first five years and variable thereafter. In October
2005, the company started offering of New Griha Laxmi housing loans against the
security of certain approved financial assets like Bank Fixed Deposits, National
Savings Certificates and Life Insurance Policies. In the year 2006, the company
introduced new Griha Jestha for senior citizens for buying unit of LICHFL Care
Homes Ltd. In May 2007, the company launched maiden Fixed Deposit Scheme. In
October31, 2007, the company incorporated LICHFL Financial Services Ltd for
undertaking non fund based activities like marketing of housing loans, insurance
products, credit card, mutual fund, personal loan etc. In February 2008, they launched
reverse mortgage for senior citizens above 60 years of age. In February14, 2008, the
company incorporated LICHFL Asset Management Company Private Limited for
undertaking the business of managing, advising, administering venture funds, unit
trust, investment trust in India as well as abroad. In March 5, 2008, the company
incorporated LICHFL Trustee Company Private Limited for undertaking the business
of trustees of venture capital trust, funds - in India and offshore fund. In March 12,
2008, they launched a new venture capital fund for realty projects. During the year
2009-10, the company was awarded the Second Best Home Loan Provider award by

Outlook Profit. During the year 2010-11, the 13company launched a unique interest
rate scheme namely; MINI 5 to cater to housing finance needs of the priority sector
population residing in Tier II and Tier III cities.

2.6 The LICHFL Advantages

Organized, Integrated and Professional Approach.

Strong Brand - Synonymous with Transparency, Trust and Credibility.
Experience in the field of real estate and financing.
Vast Network of Agency Force and Branch Network.
Large pool of experienced staff.
Additional in-house facility & expertise to provide home finance to customers.
Reliable advice as per requirements and budget of customer at the best terms

and price.
Highly experienced team of Over 773 Direct Sales Agent (DSAs), 3400 Home

Loan Agents (HLAs) and 615 Customer Relationship Associates.

Existing network & relationship with service providers.
In-house facility to provide home finance.

Expertise in Legal and Technical Scrutiny of Property Relationship with

leading Developers across the country.

Thorough understanding of processes.

Punch line - "Are you sure that you will get the desired loan, after you have
booked the property? Now, book your property through LIC HFL Property Page
services and have peace of mind." All service from booking of property till
possession, under one roof. Fair and transparent deal.

2.7 BOARD OF DIRECTORS OF THE COMPANY

1

Mr. Surya Kumar Roy

Non-Executive

Nominee Director

Mr. S. B. Mainak

Non-Executive

Nominee Director

Mr. K. Narasimha Murthy

Non-Executive

Independent Director

Mr. S. Ravi

Non-Executive

Independent Director

Mr. B. N. Shukla

Non-Executive

Independent Director

Mr. Jagdish Kapoor

Non-Executive

Independent Director

Ms. Savita Singh

Non-Executive

Independent Director

Mr. T. V. Rao

Non-Executive

Independent Director

2.8 SENIOR EXECUTIVES OF THE COMPANY

Mr. Nitin K. Jage

General Manager (Taxation) & Company Secretary

Mr. Ajith Kumar L General Manager (Accounts, CRM and Legal)

2
Mr. Meena L C

General Manager(Marketing - Retail & Corporate, Market

Research)

Mr. Shekhar P

General Manager(IT & HR,OS, Estates)

Mr. Narayanan P

Chief Financial Officer

Mr. Nikhil Jain

Chief Manager (Subsidiary Monitoring, Risk Management

& Audit Department)

Ms. Purti Samant

Chief Manager(Project Finance)

Mr.Soumitra
Chatterjee

Chief Manager(Credit Appraisal)

Mr. N. Mahesh

Chief Manager (Recovery, PR & Publicity)

3
4
5
6
7
8

2.9AREA OFFICE ALLAHABAD ADDRESS

LIC HOUSING FINANCE
JEEVAN PRAKASH BUILDING
CIVILLINES ALLAHABAD

2.10ALLAHABAD AREA OFFICE STAFF

SR NO.

NAME

POST

SHARAD KUMAR SHARMA

AREA MANAGER

RAKESH KUMAR DUBEY

SENIOR ASSOCIATE

SUDIPTA CHAKARVORTY

ASSOCIATE

VIJAY PATHAK

ASSOCIATE

SATISH

ASSOCIATE

2.11 Various Products Offered By LIC Housing Finance:

As per various LIC Housing Finance news, there are many products that are offered
by the company ever since it was launched way back in the year 1989.These include
both deposits as well as advance schemes that work as tools of housing finance by
LIC.

2.12 Reasons for Home Loans:

To own a home is every ones dream. From a single room to multi-storeye
departments, private villas, holiday homes, second homes - the Housing market is
well developed in most towns.
Home loans help you realize your own home dream, even when you are
young. We help you plan your dream home as you start your working life, by offering
various options of easy installments, Income Tax benefits and more . . .

Loans:
Loans are offered as per different target groups of consumers. Thus, there are lic
housing finance schemes offered as loans according to different borrower-category,
such as:

Corporate loans
Loans meant specifically for builders as well as real estate

developers
Home-loans Page
Loans aimed at professionals

Deposit schemes:
Deposit schemes were first launched by the company on 10thMay 2007 and may be
accepted as both cumulative as well as non-cumulative deposit schemes. Terms of

deposit may range from 1 year; 18 months; 2 years; 3years as well as 5 years. Interest
under non-cumulative deposit schemes would be distributed twice a year; whereas
interest on cumulative deposit schemes would be calculated as per bi-annually
compounding.

Loans: Housing Finance by LIC:

Loan-schemes available with lic housing finance are customized to suit varied
requirements as per individual borrower-profile. As per official website and lic
housing finance news following loans are available.

1. Home loans: Are offered at easy rates to both residents as well as nonresident Indians. Step-up facility in terms of amount of EMI amount is also
available for those who wish to opt for a steady increase in their repayment
capacity during tenure if loan.
2. Corporate loans: Aimed at corporate employees who have been approved
by LIC and include employees of PSUs, reputed public as well as private
limited companies.
3.

Other Loans - offered as secured personal loans against properties, loans

against securities, loans to professionals, loans under rental securitization.
These can be used to top-up home loans for additional financing.

2.13 LICHFL is the best choice because

LIC HOUSING FINANCE LIMITED is one of the largest Housing Finance

providers in India, which has provided finance for almost 9,50,000 houses in
the country.

LICHFL is a single-product company with its core business being Home

Loans, and has about two decades of experience and in-depth knowledge of
the real estate market dynamics.

LICHFL provides:

2.14

Lowest Interest Rate.

Easy application, quick approvals.
Largest Network.
No Hidden Costs.
The Company has been rated as FAAA/Stable by CRISIL.

Reasons to buy from LICHFL?

They operate in the Financial Services industry with you as the center of We
operate in the Financial Services industry with you as the center of focus. We
provide complete, holistic financial solutions to meet all your financial needs. We
ensure well-trained, professional financial planners at your service, as well as
provide you with personal finance education and money management tools, to
help you make the right decisions for your secure future

2.15 Competitors in the Market State Bank of India

SBI:

Offers its customers exclusive packages of mortgage loans at lowest rates

such service includes Reverse Mortgage Loan that enables house-owning
Senior Citizens having inadequate income to meet their financial needs for
renovation/repairs to house, medical & other personal purposes.

Bank of Baroda:

The Bank of Baroda is reputed for providing very high quality financial products
pertaining to home loans and loans for household purposes. It offers a flexible
approach to the customers to deposit, withdraw and repay installments as per need and
enjoy low mortgage rates combining it with the loan and over draft facility.

United Bank of India:

United Bank of India has been around in the financial sector from more than
50years and the mortgage scheme offered by the bank is one of the most
important part of its financial portfolio. The loan caters the basic need of the
borrower to meet any personal/ business requirement at affordable rates.

ICICI Home Finance :

Part of the ICICI Group, ICICI HFC is one of the leaders in the Indian mortgage
finance and realty space following just after HDFC. Its various business offerings
include, Home loans, Loan against property, Home search, Construction Finance and
so on.

2.16 SUBSIDIARY COMPANIES

1. LICHFL CARE HOMES LIMITED

To address the crying need of housing for the senior citizens of the country, the
company had promoted LICHFL Care Homes Limited, to establish and operate
assisted community living centers. LICHFL Care Homes Limited was incorporate
on 11th September, 2001. It launched its eco-friendly pilot project in Bangalore
with cost- effective independent cottages and all other on-campus amenities, fully
structured and self-contained to address every possible need of residents. It has
library, community Centre, home theatre, mediation Centre, and doctors on call
and ambulance to take the ailing to the nearest city Medicare Centre-all that would
make the lives of senior citizens comfortable and satisfying. New such projects
are planned in Bhubaneswar and Jaipur and the company is in the process of
finalizing the purchase of land for a few more projects.

2. LICHFL FINANCIAL SERVICES LIMITED

LICHFL Financial Services Ltd was incorporated on 31 st October, 2007 for
undertaking non fund based activities like marketing of housing loans, insurance
products, credit card, mutual fund, personal loan etc. It has become operational in
2008-09 and has already opened five offices in Maharashtra and plans to open at least
another 30 offices during 2009-10.

3. LICHFL TRUSTEE COMPANY PRIVATE LIMITED

LICHFL Trustee Company Private Ltd was incorporated on 5 th march , 2008 for
undertaking the business of trustees of venture capital trust, funds-in India and
offshore fund. The company would very soon launch its operations-act as trustee
of the fund raised through private placement, public offer etc.

4. LICHFL ASSEST MANAGEMENT COMPANY PRIVATE

LIMITED
LICHFL Asset Management Company Private Limited was incorporated on
14th Feb, 2008 for undertaking the business of managing, advising,

administering venture funds, unit trust, and investment trust in India as well as
abroad. The company would launch its operation very soon.

2.17 OBJECTIVE OF THE STUDY

To Study the process of home loan.

Document Required for Loan Sanction.

Document Required for Loan Disbursement.

Processing fees paid by the customer for the processing of the home loan
proposal.

To study the process of Customer Verification.

6
7

To Study the process of Calculation of Loan Disbursement on Property.

2.18 HOME LOANS:

LIC Home Loans to Resident Indians:
These LIC HFL loans are offered to borrowers who are residents of India, seeking
home financing for purchase, construction, extension, renovation, land purchase,
refinance or additional funding (top-up loans).
Under this scheme:
The minimum loan amount that can be availed is Rs.1 lakh.
The maximum loan amount that can be availed is based on the amount of funding
required and the value of the property funded, where property value includes
registration charges and stamp duty
Funding Required

Margin of Finance

Up to Rs.20 lakhs

85%

Rs.20 lakhs to Rs.75 lakhs

80%

Rs.75 lakhs above

75%

Depending on borrowers job profiles and loan servicing abilities, the maximum
tenure offered is 30 years for salaried borrowers and 20 years for self-employed
borrowers. These loans are to be repaid in equal parts, every month, over the period of
the loan i.e. through EMIs (equated monthly installments).
Interest will be calculated on a monthly-reducing balance basis according to rates as
at the time of application.
Borrowers may be required to pay additional fees.

Land Purchases:

Funding under this scheme is offered to borrowers seeking to buy plots of land for
residential purposes. Plots, in this case, are those sold by statutory/government
authorities.
The amount of funding that can be availed, under this scheme, depends on the value
of the plot being purchased. A maximum of 75% of the property value may be
approved for eligible borrowers.
Loans disbursed, for this purpose, can be repaid over a tenure of 15 years (maximum)
in equal monthly installments (EMIs). Interest will be calculated on a monthlyreducing balance basis, charged at rates prevalent at the time of obtaining the loan.
Additional amounts may be charged upfront.
Refinance or Top-Ups:
Borrowers can switch from their current lender to LIC HFL, who will take over the
existing loan on the following terms:

The new loan tenure offered will be a maximum of 30 years or 20 years for
salaried or self-employed persons, respectively, at rates prevailing at the time

of takeover.
Borrowers may be liable to pay additional fees.

LIC Home Loans To Non-Resident Indians (NRIs):

These LIC Home loans are offered to borrowers considered Non-Resident Indians
(NRIs) or Persons of Indian Origin (PIO). It is available to salaried persons only and
for the following purposes:
Purchase, construction, extension, repair of homes or purchase of residential land
plots from statutory or government bodies.

Under this scheme:

Borrowers can avail minimum funding of Rs.1 lakh.

Loan amounts will be approved and disbursed on the basis of the value of the property
funded (inclusive of registration charges + stamp duty).

Funding Required

Margin of Finance

Up to Rs.20 lakhs

85%

Rs.20 lakhs to Rs.75 lakhs

80%

Rs.75 lakhs above

75%

Purchase of residential plot

75%

For professionally qualified borrowers, the maximum tenure offered is 20 years. For
others, it is capped at 15 years. Loan payments are made in equal monthly
installments or EMIs. Interest is calculated based on monthly rests, as per rates
specified by the company at the time of borrowing.
The company may charge certain fees, payable upfront.

LIC Home Loans to Pensioners:

These loan schemes are designed for pensioners seeking housing finance for purchase,
construction or extension of new/existing homes.

Before Retirement:

Purposes

: Loans under the scheme may be availed for

purchase, construction, extension of House / Flat

Eligibility

: Persons whose age is 50 or more and having a pension

scheme after retirement may apply for loan under this scheme.

Terms

& : An undertaking letter that the entire loan or at least 30 % or

Conditions

an amount as decided by the Area Office will be repaid out of

the retirement benefits is required. The balance is to be repaid
from the Pension Income. The amount of Principal to be
repaid at the time of retirement will depend on the Pension
amount the applicant is eligible after retirement.

Loan Term

: The term of the loan will be up to 15 years or 70 years of age

whichever is earlier.

Post Retirement:
Purposes

: Loans under the scheme may be availed for purchase,

construction, extension of House / Flat.

Eligibility

: Pensioners having a stable income throughout their life

from pension may apply for loan under this scheme.

Terms

&

Conditions

: 1) Commutation of Pension or any portion thereof is not

allowed

under

this

scheme.

2) A Guarantor acceptable to the Company is required.

Repaymen
t Mode

: The loan is to be repaid before the applicant attains the

age of 70 years.

2.19 CHARGES IN HOME LOAN:

Acquiring a Home Loan doesnt only involve the cost of home l o a n
interest rates but it also includes other charges & fee
accompanying at various stages of taking the Home loan. You m u s t
c o n s i d e r a l l t h e s e c h a r g e s w h i l e c o m p a r i n g t h e c o s t structure
across banks. Following is the detailed fee structure incurred by banks at
different loan stages:
Processing Charge:
It is a fee payable at the time of submitting the loan application to the bank which
is normally non-refundable. The fee ranges between 0.5 per cent and 1 per cent
of the loan amount.
Administrative Fee:
It is a fee incurred by banks at the time of loan sanction; there are few
banks who have removed this fee so you must check it with all the banks.
Prepayment Penalties
W h e n t h e b o r r o w e r p r e - p a ys t h e l o a n b e f o r e t h e l o a n t e n u r e , banks
charge a penalty which usually varies between 1 per cent and 2 per cent of the prepaid amount.
Legal Charges:
Banks also incur some charges from the customer for legal and technical verification
of the property.
Delayed payment Charges:
When there is a delay in the payment of your EMI,
banks

charge a late payment fee from the borrower which

n o r m a l l y ranges from 2% to 3% of the EMI.

Cheque bounces charges:

Banks charge between Rs.250 and Rs.500 for every bounced cheque towards the
loan payment because of lack of funds in your account.

Special Features:

Get Sanction Letter Before You Finalized Your Property

Tenure up to 30 Years
Higher Loan Amount Eligibility
Monthly Reducing Balance
Easy and Simple Documentation
Not Required- Guarantor and Insurance Product
Maximum Funding 85% (up to 20 lakhs) and 80% (above 20 lakhs)

Features:

Home Loan
Loan against Property
Balance Transfer + Top up
Both Fixed and Floating Rates Available
Best Housing finance company in country awarded by CNBC TV 18.
Housing finance Expertise for more than 20 Years

Fees on Prepayment:

Nil if paid from own sources else 2.00% on the amount of loan
prepaid+ Service Tax applicable

2.22 RATE OF INTEREST

The Company has revised the rates of interest on Public Deposits with effect from 1st April,
2015 as under.

RATE OF INTEREST APPLICABLE TO RETAIL DEPOSIT UP TO RS. 5

CRORE

Term

Revised ROI
per annum on
Deposits from
General Public
w.e.f. from
01.04.2015

Revised ROI per

annum on Deposits
From Senior Citizens
up to RS.50,000/w.e.f. from 01.04.2015

Revised ROI per

annum on Deposits
From Senior Citizens
RS.51,000/- and above
w.e.f. from 01.04.2015

1 YEAR

8.60%

8.70%

8.85%;

8.60%

8.70%

8.85%

2 YEAR

8.70%

8.80%

8.95%

3 YEAR

8.75%

8.85%

9.00%

5 YEAR

9.00%

9.10%

9.25%

18
MONTH
S

Interest is Payable/Compoundable Annually.

FOR DEPOSIT MORE THAN RS. 5 CRORE

In case any investor intends to make a public deposit for more than Rs. 5 crore, he has to
get the rate of interest and brokerage rate, if applicable, confirmed from the Company in
writing

Splitting

before

of

depositing

deposit/s

the

is/are

cheque

not

allowed.

In case any investor makes multiple deposits having denomination of less than or equal to
five crore, but aggregate deposit amount(all the deposits placed together by the same
investor) in 1 Month, irrespective of the location of the deposit, exceeds rupees five crore
amount, then it is considered as bulk deposit of more than five crore and the Company will
apply the rate of interest on deposit and brokerage rate as they are applicable to bulk
deposit on the day on which the aggregate amount of deposits exceeds five crore. If there is
a gap of 1 Month between two deposits having denomination of less than five crore, then
such deposits will be treated as independent deposits and they will not be considered

together

2.23 HOME LOAN PROCEDURE

With the increasing competition in the market for offering Home Loans, the otherwise
tedious process of availing loans has gone a tremendous change in the recent years.
However, there is still some process involved in the procurement of Home Loans. It is
advisable for borrowers to first look at the different stages required for obtaining a
home loan. Here is step by step procedure of procuring home loan.

STEP 1: APPLICATION FORM

The first step involved in applying for Home Loan is the procurement of application
from the HFC of applicants choice. The Performa of application every HFC (Housing
Finance Companies) is different from the other but about 80% information required to
be furnished is the same. Along with the application from necessary documents like
address proof, age proof, proof of income, bank balance etc. are also to be attached
with the application form before it is submitted to the HFC. Along with all these
documents HFCs also ask for processing fee of the Home Loan that varies 0.25% to
0.50% of the total Loan Amount.

STEP2: PERSONAL DISCUSSION

After successfully filling the application form and submitting it to the authority the
next step is face to face with bank or HFC where you have applied for the Home
Loan. The bank first evaluates the papers submitted and summons the applicant for
the personal discussion regarding the Home Loan applied for.

STEP3: BANKS FIELD INVESTIGATION

The next step is the field investigation done by the HFC or banks. They send
representatives to the existing residence of the applicants or their Offices for the
validation of the documents submitted. This is the essential part for the banks to
establish the trust with the applicants.

STEP4: CREDIT APPRAISAL BY THE BANK AND THE LOAN

SANCTION (CIBIL)
This is the break or break stage of the process. The bank or HFC will establishes
repayment capacity based on applicants income, age, qualifications, experience,
employer, nature of business to access credential. The bank can refuse Loan
application if any discrepancy is found at this stage. But if everything goes according
to the conditions negotiated by the parties then the bank or HFC sanction the Loan
that may be unconditional or with some condition levied.

STEP5: OFFER LETTER

After the sanction of the Home Loan, the applicant gets offer letter from the bank or
HFC with the following details. Loan amount, Rate of interest, fixed or variable ROI,
Tenure of the loan, Mode of repayment, General terms and conditions of the Loan,
Special conditions etc. If the terms and conditions are agreed the applicant has to sign
the duplicate copy of the offer letter and that is to be submitted to the Bank or HFC.

STEP6: SUBMISSION OF LEGAL DOCUMENT AND LEGAL

CHECK
The bank or the HFC now asks for the legal documents of the property involved for
applying home loan. All the legal documents of the property involved have to be
submitted. The bank does all the legal checks on the property. The document remains
with the bank until the repayment of the Home Loan.

STEP7: TECHNICAL/VALUATION CHECK

The Banks or HFC then go about the technical Valuation of the property. The experts
of the Bank visit the site to be purchased and value it as per the existing rules and

regulations. The valuation of the property is the most important aspect that the banks
consider before financing any property.

STEP8: REGISTRATION OF PROPERTY DOCUMENTS

After the legal and technical valuation of the property the draft documents have to be
cleared by the lawyer and stamping and the registration of the documents is needed.

STEP9: SIGNING OF AGREEMENTS AND SUBMITTING POSTDATED CHEQUES

Now it is time of signing the final agreement of the Home Loan. After the signing of
the agreement a bunch of post dated cheque are to be submitted as agreed on the
agreement. It is time for the final Disbursement of the Home Loan.

STEP10: DISBURSEMENT
It is time for the final Disbursement of the Home Loan. After the bank or HFC
ensures financing the property involves no risk they pay the final amount that is
agreed upon. The mode of payment varies from full to part payment. In the case of
under construction property the move is part payment and in the case of ready
position property disbursement is full and final.

2.25 E.M.I CHART (FOR 1 LAKH)

TERM
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

CELEBRATION
25
10.1
8797
4620
3232
2542
2130
1858
1666
1523
1414
1328
1258
1201
1154
1115
1081
1053
1028
1007
988
972
958
946
935
925
916
909
902
896
890
885

NEW FIX
10
11.25
8850
4673
3286
2597
2187
1917
1726
1885
1477
1392
1324
1269
1223
1185
1153
1126
1102
1082
1065
1050
1037
1025
1015
1006
999
992
986
981
976
972

NEW FIX 10
11.75
8874
4696
3310
2622
2212
1943
1752
1612
1505
1421
1354
1299
1250
1216
1185
1168
1135
1116
1099
1084
1072
1061
1051
1043
1035
1029
1023
1018
1014
1010

SURE
FIX
12.25
8897
4720
3334
2646
2238
1969
1779
1640
1533
1450
1383
1329
1285
1248
1217
1191
1168
1149
1133
1119
1107
1096
1087
1079
1072
1066
1061
1056
1052
1048

GV
12.50
8909
4731
3346
2659
2250
1982
1793
1653
1547
1464
1398
1344
1300
1264
1233
1207
1185
1167
1150
1137
1125
1114
1105
1098
1091
1085
1080
1075
1071
1068

4.2 Home Loans Two Stages

The housing finance cycle at LIC Housing Finance Ltd is of two stages, both are
important and play a vital role in fulfilling the requirements of housing finance
institution.

The two stages are as under:1. Sanction stage.

2. Disbursement stages

1. Sanction Stage.
It is a stage where the customer gets sanction or approval that he is eligible to
take a loan of specific amount calculated on the basis of his income from LIC
Housing Finance Ltd.
2. Disbursement Stage.
It is stage where the cheque of sanctioned amount is handover to the customer
or concerned person.

3.2.1 Sanction Stage

A. Generation of leads/Sourcing of business.
B. Contact & collection of documents from customer.
C. Completion of documents.
D. Field investigation report
E. Verification of relationship officer.
F. Personal discussion.
G. Final approval or rejection by the branch credit manager.

H. Sanction letter delivered to the customer.

A. Generation of leads/Sourcing of business:This is an important step in the housing finance cycle to keep the
organization moving successfully. It is essential to generate cases to credit LIC HFL
uses methods to source business & generate leads1.
2.
3.
4.
5.

Mail.
Walk-in interview.
Telephone enquiry.
Customer reference.
Approved project file.

B. Contact & collection of documents from customer:Once the lead has been sourced the sales officers contact him & give him a last
of documents long with other corresponding information. When the documents are
handed over to sales officer, he submit documents along with the application from to
LIC Housing Finance Ltd. Sales officer gives an idea about how much loan can
customer avail as per his income.

C. Completion of documents:The document have been collected by the sales officer hand over to the back
office executive, executive then complete documents in special file provided for LIC
Housing Finance Ltd in accordance with the requirement of LIC Housing Finance
Ltd.
D. Field investigation report:After completing the documents the back office executive ties the field
investigation report with the data compiled from the file before moving it on the next
stage.

E. Verification by sales manager:After completion of documents and filling of it, the documents are handled
over to the Sales manager, who verifies the documents to check for loan analysis the
strength and weakness of a case, the loan eligibility & the requirement of additional
documents. The sales manager act as a filter allowing good case to flowing through
for final approval while do not fit, into the policies of LIC Housing Finance Ltd. Sales
manager make signature if the case fit into policies of the bank.

F. Personal discussion:PD is an important stage in sanction process, s per norms loan amount is
decided on the basis of the documentation but the customer knowledge, and his
behavior can be decided on the basis of PD with him. It helps to judge the credit
worth ness of applicant which helps organization in future. Sales manager makes
signature if the case fit into policies of the bank.

G. Final approval or rejection by the branch credit manager:The file is send to the branch credit manager for final approval. After checking
the file branch credit manager takes final decision of approval or rejection of the case.
If the case is rejected the documents are returned to the customer & if the case is
approved then it goes to the next step.

H. Sanction letter delivered to customer:This is the final step in sanction process after receiving the sanction letter it
hand over the

sanction letter to the customer along with a list of legal documents

required for the next stage i.e. disbursement stage.

3.2.2 Disbursement Stage
A. Collection of legal documents.

B. Completion of documents.
C. Legal appraised.
D. Technical appraised.
E. Final check to B.C.M
F. Cheque disbursement.

A. Collection of legal documents:This is the first step towards the disbursement of cheque after sanction of the
case. Already the sales officer collect the legal document from the customer in
a case of self-construction & or collect it from the builder from whom the
customer is purchasing the property.

B. Completion of documents:Once the documents are collected by the sales officer he hand it over to the
back

office executive for compilation on the executive complete the

documents and process.

C. Legal appraisal:The legal appraisal of a case is an important step & it done by layer specially
appointed by LIC Housing Finance Ltd. The Lawyer verifies the documents to
check if the title of the property is free & marketable from the obligation;
other legal aspect is free from any fraud. Once the documents have been
verified he submits a legal report to LIC Housing Finance Ltd. The lawyer
report is very essential without his approval no case is clear. In case of
negative mentioned by the lawyer the case is being rejected.

D. Technical appraised:The technical appraisal is a task in which as engineer specially appointed by

LIC Housing Finance Ltd he visits the site and check the property and prepare

a report and submit it to the bank. On the basis of the report the BCM takes his
disbursement decision submit it to the bank. On the basis of the report the
BCM takes his disbursement decision.
1. If the property is in accordance with the plans rules and regulations
approved by NMC.
2. If there are any illegal and unauthorized construction on the site.
3. If the owner of the property is same as mentioned on the legal
documents.
4. The extract or stage of constructions.
5. The raw material etc. available on the site.
6. He checks to see the cost is being incurred on the property is
equivalent to the estimate shown by the customer.
7. He also provide an estimates date of compilation of the property.
8. Checking the age and conciliation of the property in case of resale
Property.
E. Final check to B.C.M:The BCM makes a final check of the documents before taking decision. If the
case is clear then BCM sends the file to operational manager.
F. Cheque disbursement:This is the final step in the disbursement stage. The operation manager
prepares the cheque along with the letter which is handed over to the sales
officer who then gives it to the customer. Disbursement of cheque is done in
accordance with the stage of construction as reported by technical advisor.
The cheque is disbursed in two ways,
1. As a part disbursement
2. Fully disbursement

4.3LIC Home Loan Eligibility:

Anyone with a repayment capability and a dream to buy a home is eligible to get a
home loan. Some of the important eligibility criteria are as follows:

Salaried individual or Self-employed individual or Self-employed professional

like doctor, lawyer, etc.

NRI or resident Indians

Aged between 21 years and 65 years

Have a good CIBIL credit score

Good repayment capacity with fixed & stable income source

Employment at a stable company

4.4 LIST OF DOCUMENTS REQUIRED FOR HOME LOAN

SANCTION
Salaried Person

Application for Completed with 2 Photo Duly Filled in and Signed

Identity Proof: Pan Card, Passport, Voter card, Employer ID Card and
Driving license

Residence Proof: Latest Telephone Bill, Bank Statement containing Address

for last 6 month, Electricity Bill, Ration Card, Letter from Employer

Latest 3 months Salary Slip with seal and Sign

Latest Form 16 with Seal and Sign

Copy of Appointment Letter with Latest CTC and Confirmation Letter

Original Bank Statement, Passbook of Salary A/c for Last 6 month with Seal
and Sign

Last Qualification Proof

Previous Employment Details if applicant is on Probation

LIC Insurance and other Insurance Policy Details if Any

Processing Fees Cheque

All Track Records for 24 months for existing loans if any

All Documents to be self-attested

Self Employed / Professional

Application for Completed with 2 Photo Duly Filled in and Signed

Identity Proof: Pan Card , Passport ,Voter card, Driving license

Residence Proof: Latest Telephone Bill, Bank Statement containing Address

for last 6 month, Electricity Bill, Ration Card

Last 3 years ITRs (SARAL, Computation of income, Balance Sheet, Profit and
loss A/c, TDS Certificates (If Applicable), Tax paid Challans

In case of Partnership firm : ITRs for last 3 years and Partnership Firm

In case of company: Audit Reports for last 3 years and MOA and AOA

Bank Statement/ Passbook of Current and SB A/c for last 6 months (update)

Alternate Business Proof (Shop Registration Certificate etc.)

Processing Fees Cheque

26 AS for 3 years

IT Verification

Documents Related Information of LIC Housing Finance AGE

Income
Loan Amount
Offered
Tenure
Current
Experience
Processing Fee

Salaried
18years to 60years
Rs.15000 (p.m.) NTH

Self employed
18years to 60years
ITR 2,00,000(p.a)

5,00,000 1,00,00000

5,00,000 2,00,00000

5 years 25 years

5 years 20 years

2 years

3 years

1% of Loan Amount

1% of Loan Amount

1) Application form with

photograph.
2) Identity & residence
proof.
3) Latest 3 months salary
Documentation
slip.
4) Form 16
5) Last 6 months salaried
bank statements
6) Processing fee cheque

1) Application form with photograph.

2) Identity & residence proof.
3) Education qualifications certificate &
proof of business existence.
4) Business profile, Last 3 years
profit/loss & balance sheet.
5) Last 6 months bank statements.
6) Processing fee cheque

In Case of Take Over

Outstanding Loan Quotation

Repayment Track Record
List of Document from Bank
NOC for take over
Copies of Property Agreement
Sanction Plan copy (Blue Print)

Non Residency Indian

Copy of Passport , Visa, Service Contract, Salary Slip (all duty attested by

Indian embassy/Notary/HFL Officials/ Bank)

GPA (General Power Attorney ~ in our format (all duly attested by Indian

embassy/Notary/HFL Officials/Bank)
Bank Statement for past one year of recent employment
NRI Bank Statement for 6 months
See list of Salaried Document
Above mentioned income document are required for the Co-applicant also if
His / Her income is considered.

4.6 LIST OF DOCUMENTS FOR DISBURSEMENT

Post sanction/Legal Documents
Post sanction is legal document on the basis of which a Cheque is disbursed to the
customer. The only security that LIC HFL has against loan in this legal documents
and no deviation is usually allowed in legal documents. These documents are sending
to the lawyer who verifies before being accepted by LIC HFL. These are as follows:
1. Direct from Builder Case
Agreement of Sale
Sub Registrar Receipt
No Objection Certificate from builder
Own Contribution receipt from builder
2. Direct from Registered co-op Housing Society Ltd:
Share Certificate
Allotment Letter
No Objection Certificate from Society
Own Contribution Receipt from Society
Copy of Society by Laws
Society Registration Certificate
Registered Agreement if not original member
3. Own Construction Case:
Original sale deed with registration receipt
7/12 extract
6D extract
NA order copy
ULC order copy
Latest title clearance certificate
Original Architect estimate
Commencement Certificate
Prior sale deed with original registration receipt
4. Resale Case:
Sale deed / agreement with registration receipt
Previous customers sale deed / agreement with registration receipt
Own contribution receipt
NOC from builders/ society
Title certificate
Share certificate and Allotment letter (if applicable)
NA order and NA tax receipt (Xerox)
ULC (Xerox)
7/12 and 6-D extract (Xerox)
Commencement certificate and completion certificate (Xerox)

Society Registration certificate and by laws (Xerox)

Title certificate (Xerox)
Building plan (Xerox)

5. Master file/Legal file:

Sale deed/lease deed/give deed or Development Agreement/Power of
Attorney/Partnership Deed
NA order and ULC
Commencement Certificate and Completion
Building plan
7/12 extract and 6-D extract
Title Certificate
Society Registration Certificate
Bye laws copy

Analysis of Legal Document

All owners of the property should be applicants

Check for cost of property and OCRs paid
Signature of the owners should match with the application form
Witness should sign the agreement
Priority and non-Priority documents to be collected as per legal report
NOC From builder/society/development authority as the case may be
Own contribution receipts

AGREEMENTS
Current Agreement must be registered
Stamp Duty Receipt required
Registration receipt required
Stamp duty receipt and registration receipt amount to be added to cost of
property and calculated as OCRs too.

NOC
NOC should be on the letterhead of the Society /Builder / development
Authority
Should have the stamp of the Society/Builder/Development Authority
Address should match as per the agreement, Flat no. , Wing no. etc.
Should be as per the procedures and drafts for different transaction types .

 Must be dated.

Own Contribution Receipts

Must have a revenue stamp
Cash payments cannot be more than Rs.20000/Should give details of the property like flat number etc .
In case of refinance > Rs. 1lac
Builder Case- Receipts from the builder and debits in bank

account
Resale- Agreement for sale/ Sale deed to be registered before
refinance

Property norms
Property should not be in negative area
Property should be within geographic limits
Property should be self-contained
Maximum age of property less than 35 years at loan application
Loan tenure not to exceed residual age of the property
Minimum Built up area > 400 sq. ft.
In case of row house of ground floor only

4.7 Personal Discussion(Salaried Person)

1.

2.
3.

4.

5.

Name of applicants
(a)Name of employer Organization
(b)Designation
(c)No. of Years in service with present
employer
(a)Education Qualification
(b)Name of university/institute
(c)Year of Passing out
Past Experience- No. Of job Changed
Previous Employer 1
(a)Name of Organization
(b)Designation
(c)No. of years in service
Previous Employer 1
(a)Name of Organization
(b)Designation
(c)No. of years in service
Family Status

6.

7.

8.

9.
10.
11.

12.

(a)Where spouse is Co-Applicant

(b)Where spouse is Working
Salaried/self-Employed
Details regarding Place of residence
(a)Current
ResidenceOwned/rented/company leased/parental
(b)No. of Years staying at current
residence
(c)In Case of company leased
accommodation whether planning to
shift to new premises
If yes, Expected Sales Proceed/Rent
Details of saving investment/savings
(a)Immovable
Property/Bank
FD/Savings Balance/NSC/KVP/Mutual
Fund/Shares
&stocks/
Bonds/PPF/Insurance Policies
Complete
details
of
existing
loans/Liabilities provided in application
forms?
Whether Application Intends to Close
any of them?
As per Applicants View, how much
EMI can he pay to LIC HFL
(a) Whether Property Identified?
(b)Approximate Property Value
(c)Source of Margin Money
Comment on end use of Money in case
of top-up Loan & Loan under Griha
Vikas Scheme.
Whether procedure for sanction of Loan
e.g. Verifications CIBIL explain to the
applicant

4.8 Calculation sheet of loan on his Payment format

Application Earning
Particulars
Amount(P.M)
Basic Pay
DA
HRA
Transport Allowance
SPL Allowance
Performance
Allowance

Medical Allowance
LTA
Education Allowance
Variable(Annual)
LTA
PLI/Bonus/Incentive
Medical
Total Variable
TOTAL EARNING
(A)
Deduction
Particulars
Provident Fund
Professional Tax
Income Tax
Transport
Canteen
Loan1
Loan2
Loan3
Loan4
TOTAL
DEDUCTION(B)
NET INCOME(A-B)
Application Age(D)
Loan Term(E)
Age+Term(D+E)
Total Net Income
Loan Amount
EMI
MLSC

4.9 Customer-Basic Eligibility Calculations

FOIR- Fixed Obligation to Income Ratio
Income

FOIR-Fixed Obligation to Income Ratio

Below 20000 to 25000

25000 and above

50%
60%

How to treat income from other sources

Source
Agriculture Income(As stands
for ITR)
Rental Income
Rental Income

Rental Income

LIC/ Broker commission i.e.

NSC,KVP,IVP portal
Interest/Dividend Income

%Eligibility
50% of Average of last two
years
100% of averages of last two
years
100% of current rental
income as per lease
agreement
50% of current rental income
as per leave and License
agreement
50% of new business and
100% of renewal business
50% of average of last 2
years

Proof
3 years ITTRs and 7/12 extract
or ownership documents copy
03ITR
Lease Agreement for 3 years

leave and License agreement

copy of current period
Certificate/Original
commission slip of Cos.
03 years ITRs

The agreement of the eligibility from other sources of income must not be more than
100% of the agreements of the main salary income.

1) Resident India-Salaried
ITEMS
REG.ITEMS(PAY SLIP)
HRA
PENSION
BONUS
ANNUAL BENEFITS
FIXED REIMBURSEMENTS
VARIABLE ITEM
2)

CONSIDERATION
100%
100%
100%
100%
50%
50%
50%

Self-Employed Professional:
For calculations purpose SEPs can be classified as per following patterna. Doctors
b. Allopathic(MBBS plus)
c. Other(BHMS,BUMS,(etc.))
d. Others (CA, CWA, CS, Lawyer, Consultant etc.)
Method Used

1. GPR Multiplier Method

2. Eligibility based on net profit

Resident Indian-SENP
Business Income
Av. Net Profile (PAT) for last two years
Add: Depreciation

Net Profit
Depreciation
----------------Business Income

Personal Income(Salary/Remuneration)
Av. for last two years
Total Appraised Income

BI+PI

Income for other source

Type
Agriculture Income
Rental Income
Interest/Dividend Income

Eligibility
50%*
100%*
50%*

*Average of the last two year amount

Income from above source should not exceed
50% of total appraised income

Proof
ITRs
ITRs
ITRs

CHAPTER-4
RESEARCH METHODOLOGY

4.1 Research Methodology

Statement of the problem:

This Study will help us to understand the consumers satisfaction about LIC HFL
services and products. This study will help the company to understand, how a
consumer selects, organizes and interprets the Quality of service and product offered
by them.
The market is more aware and realistic about investment and returns from financial
products. In this background this study tries to analyze the customer satisfaction
towards services in general and LICHFL in particular.

Need for the Study

The deeper the company understands of consumers needs and satisfaction, the
earlier the product or service is introduced ahead of competition, the greater

the expected contribution margin. Hence the study is very important.

This study will help companies to customize the service and product,

according to the consumers need.

This study will also help the companies to understand the experience and
expectations of the existing customers.

Scope of the Study

This study is limited to the consumers with in Allahabad city. The study will be able
to reveal the preferences, needs, satisfaction of the customers regarding the real estate,
It also help them to know whether the existing products or services they are offering
are really satisfying the customers needs.

Objective of the Study

To have an insight into the attitudes and behaviors of customers.

To find out the differences among perceived service and expected service.
To produce an executive service report to upgrade service characteristics.
To understand consumers preferences.
To access the degree of satisfaction of the consumers.

Research Methodology

A descriptive study tries to discover answers to the questions who, what,

when, where, and, sometimes, how. The researcher attempts to describe
or define a subject, often by creating a profile of a group of problems,

people, or events.
Such studies may involve the collection of data and the creation of a
distribution of the number of times the researcher observes a single event
or characteristic (the research variable), or they may involve relating the
interaction of two or more variables. Organizations that maintain
databases of their employees, customers, and suppliers already have
significant data to conduct descriptive studies using internal information.
Yet many firms that have such data files do not mine them regularly for
the decision-making insight they might provide. This descriptive study is
popular in business research because of its versatility across disciplines.
In for-profit, not-for-profit and government organizations, descriptive
investigations have a broad appeal to the administrator and policy analyst
for planning, monitoring, and evaluating. In this context, how questions
address issues such as quantity, cost, efficiency, effectiveness, and

adequacy.
Descriptive studies may or may not have the potential for drawing
powerful inferences. A descriptive study, however, does not explain why
an event has occurred or why the variables interact the way they do.

Sample Size
Sample size denotes the number of elements selected for the study. For
the present study, 100 respondents were selected at random. Out of these
100 some of them were LICs Leading agents, development Officers,
teachers, and staff of LIC etc.

Sampling Method
A sample is a representative part of the population. In sampling
technique, information is collected only from a representative part of the
universe and the conclusions are drawn on that basis for the entire
universe. A convenience sampling technique was used to collect data
from the respondents.

Method OF Data Collection

To know the response, the researcher used questionnaire method. It has
been designed as a primary research instrument. Questionnaires were
distributed to respondents and they were asked to answer the questions

given in the questionnaire.

The questionnaires were used as an instrumentation technique, because it
is an important method of data collection. The success of the
questionnaire method in collecting the information depends largely on
proper drafting. So in the present study questions were arranged and
interconnected logically. The structured questionnaire will reduce both

interviewers and interpreters bias.

Further, coding and analysis was done for each questions response to
reach into findings, suggestions and finally to the conclusion about the
topic.

Types of Data
Every decision poses unique needs for information, and relevant
strategies can be developed based on the information gathered through
research. Research is the systematic objective and exhaustive search for
and study of facts relevant to the problem Research design means the
framework of study that leads to the collection and analysis of data. It is a
conceptual structure with in which research is conducted. It facilitates
smooth sailing of various research operations to make the research as
effective as possible.
Primary Data

Primary data are those collected by the investigator himself for the first
time and thus they are original in character, they are collected for a

particular purpose.
A well-structured questionnaire was personally administrated to the
selected sample to collect the primary data.
Limitations of the Study
Although the study was carried out with extreme enthusiasm and
careful planning there are several limitations, which handicapped the

research viz,
1. Time Constraints:
The time stipulated for the project to be completed is less and thus
there are chances that some information might have been left out,
however due care is taken to include all the relevant information
needed.
2. Sample size:
Due to time constraints the sample size was relatively small and would
definitely have been more representative if I had collected information
from more respondents.
3. Accuracy:
It is difficult to know if all the respondents gave accurate information;
some respondents tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule,

and collection of data was very difficult. Therefore, the study had to be
carried out based on the availability of respondents.

PRIMARY DATA COLLECTED

1. Vikram Singh
Parihar
2. Pramod k Shukla
3. TK Jaiswal
4. Amit Kesharwani
5. Manoj K Jaiswal
6. Deepak
Vishwakarma
7. Sumit Agarwal
8. R.N Mitra
9. Bechan Singh
10. Praveen Mishra
11. VP Chaubey
12. Basant Kundra
13. S.S.D Agrawal
14. Arun Kumar Singh
15. Chedi Lal Singh
16. DR Singh
17. MK Shukla
18. Raju Kushwaha
19. Sankalp Shukla
20. Rakesh Chaurasiya
21. K.K Kesharwani
22. Sharvan Verma
23. Sunil Dixit
24. Vinod Kumar
Pandey
25. Rajeev Dubey
26. Kallu Dwivedi
27. Sawaria Dwivedi
28. Rana Pratap Singh
29. Aman Saluja
30. Pushpendra
31. Sandeep Dubey
32. Brijesh Kumar
33. Ram Shankar
Jaiswal

8934077044
8447623817
8542900906
7784825211
8604810454
05322694226
7054068888
9621890758
9794854787
8005366705
8418818848
8957008344
9415024382
05322407138
9956544199
9450615201
8577932276
9696400956
9936067689
05322697000
9305107526
9918159000
9935729934
9654269623
9335451128
8948943899
9450629147
9336705149
7607778942
9919866111
9616345571

411/1 Old Cantt Allahabad

111/01 Lukerganj Allahabad
68 A Pura Validi Kydganj Allahabad
G.T Road Bamrauli Near Sachdeva Petrol Pump Alld
104 Refugee Colony Naini Allahabad
220, New Colony, Naini Allahabad
48 Refugee Colony Naini Allahabad
21 New Colony Naini Allahabad
86 Tipe 2, Telephone Colony, Subedarganj Allahabad
Shanti Mandir Shani Churaha Naini Allahabad
MMC-08 ADA Colony Naini Allahabad
24, New Colony Naini Allahabad
M 2/B-4 ADA Colony Naini Allahabad
M 2/B-10 ADA Colony Naini Allahabad-211008
127P Pritam Nagar Dhumanganj Allahabad
MIG 11 Block C ADA Colony Naini Allahabad
Village & Post Bhagavatpur Allahabad
267/56 Beniganj Allahabad
146 E.W.S ADA Colony Preetam Nagar Allahabad
107/19 Refugee Colony Naini Allahabad
Yamunatri Nagar ,Madauka Road ,Naini, Allahabad
152,Conoel Ganj Allahabad
82 Gangapuram ,Naini Allahabad
5k/11 Beniganj Allahabad
23 ADA Colony Naini Allahabad
66A Chakdaud Nagar Naini, Allahabad
339 EWS ADA Colony Naini Allahabad
MMD-56 ADA Colony, Naini Allahabad
28A New Colony Naini Allahabad
Dhoomanganj Allahabad
69/2 Govindpur Allahabad

9506198397 1b/7 Chak Bhatahi Naini Allahabad

34. Mansukh Dev

Kundra
35. Bhola Nath
Prajapati
36. Rajesh Vaish
37. Santosh Dubey
38. Prashant Mishra
39. Ram Bahadur Singh
40. Mohan Pandey
41. Mukh Upadhyay
42. Siddharth
43. Sandeep Yadav
44. Satya Nidhi Shukla
45. Ashok Kumar
Shukla
46. Mintoo Dwivedi
47. Arvind Pratap
Singh
48. Prateek Srivastava
49. Sarvesh Dubey
50. Avinash
51. Shyamdhar
Kushwaha
52. Jitendra Srivastava
53. Praveen K Srivastav
54. C.P Jaiswal
55. Dr. Dinesh Mishra
56. Shri Ram Nath
57. Vijay Shanker
Shukla
58. Shraddha Srivastava
59. Amit Pandey
60. Kusum Singh
61. Mukul Dixit
62. Sanjeev K Mishra
63. Atul Kumar Singh
64. Shadab Ahmad
65. Vinay Kumar Singh
66. Krishna Den
Maurya
67. Sunita B John
68. Biju John
69. Brijesh K Maurya
70. Indra Dev Maurya
71. Byju John
72. Virendra Singh
73. Sudhir Chhadha

9369935916 23 Subhash Nagar Naini Allahabad

9005197323 92 Chak Bhatai Naini Allahabad
102 Naini Bazar Naini Allahabad
8931848297 60/2 Industrial Colony Naini Allahabad
9234621122 99 New Colony Naini Allahabad
7068437508 133 K/2 R New Basti Beniganj Allahabad
9161693454 Prayagraj Power Generation Co. Ltd Bara Allahabad
MMC-08 ADA Colony Naini Allahabad
9454111170 141/1A RajrooppurAllahabad
9452606215 566 B Lalit Nagar Railway Colony Allahabad
9451807283 147 EWS ADA Colony Preetam Nagar Allahabad
9453535936 402/4E/A Nyay Vihar Colony Sulem Sarai Allahabad
8303533194 LC 119 ADA Colony Naini Allahabad
9452495284
9919507777
8115203999
8303188447

310/05 Lukerganj Allahabad

358 M Rajrooppur Allahabad
c/0 Anil Kumar Patel Awash Vikash Colony Jhusi Alld
342 Chowk Bharti Bhawan Allahabad

8005161490 Type 2-68 BSNL Colony Subedarganj Allahabad

8933856062 106/5 Ashok Nagar Near Divine Touch Hospital Alld
9919910376 Chandpur Sawri Telerganj Allahabad
78 B Dariyabad Allahabad
9839513777 444,Ganga Sec Triveni Puram Jhunsi Allahabad
9026267116 112/4B Near Rajapur Mazaar Allahabad
9454696008
9125185842
9793047755
9795492683
9598246005
9389227095
7388953743

MMC 07 ADA Colony Naini Allahabad

161/3 A Beniganj Allahabad
133/7 K Teliyarganj Allahabad
CivilLines Allahabad Opposite Coffee House
52 B/2c Lohia Nagar Dhoomanganj Allahabad
158 Naini Bazar Naini Allahabad
117 Naini Bazar Naini Allahabad
49 B/12 A/1, Stainly Road Allahabad
8858543290 LE 15A Doorwani Nagar ADA Naini Allahabad
9918035673
9415216559
9415216559
9936637232
9207061250
9450408350
9451967385
9956811718

EA-144 ADA Colony Naini Alld

22-B Shiats Naini Alld
22-B Shiats Naini Alld
EA-143 ADA Colony Naini Allahabad
MIG-151 ADA Colony Naini Allahabad
M2A 106 ADA Colony Naini Allahabad
LC 88 ADA Colony Naini Allahabad
717/B Chak Raghunath Naini Allahabad

74. Suresh Kumar

Mishra
75. Anu Byju John
76. Prashant Pandey
77. Mohit Kumar
Mishra
78. Annana Ophasph
79. Ashutosh Saxena
80. Sanjay Kesharwani
81. S M Shukla
82. RP Pandey
83. Dr. Rajeev K
Mishra
84. JN Ojha
85. Sachin Yadav
86. Shailendra K Rao
87. Chandresh K Gupta
88. Manoj Kumar
89. Aman Singh
90. BP Sharma
91. AM Upadhyay
92. Shivam Kesarwani
93. Mahesh Vajpayee
94. Dig Vijay Nath
Pandey
95. Arjun Singh
96. Govind Mishra
97. Awadh Bihari Singh
98. Gudhu Pandey
99. Sanjay Verma
100. Rekh
a
Agarwal

9415171332 109 MIG A. Block ADA Colony Alld

9455408340 M2A 106 ADA Colony Naini Allahabad
8510885843 M2A 108 ADA Colony Naini Allahabad
9453985880
9005329417
9756706101
8896927668
9454507920
9807878727

LC-92 E ADA Colony Naini Allahabad

M2A-104 ADA Colony Naini Allahabad
M2A-105 ADA Colony Naini Allahabad
LC A 93 ADA Colony Naini Allahabad
C-788 Sector-C Mahanagar Lucknow
Krishna Nagar Naini Allahabad

9335147152
9889082202
8574434113
7541049093
9616552480
9936236800
9984470611
8765212425
9451851157
9616480503
8081872497

Medicare Clinic Kajipur Road Naini Allahabad

Ramsagar Chaka Cod Cheeoki Naini Allahabad
Gram Mejiya, Post Meja Allahabad
43A/13C Bheem Nagar (Daud Nagar) Naini Allahabad
MMD-60 ADA Colony Naini Allahabad
MMD 57, ADA Colony Naini Allahabad
Balaganj Lucknow
Chakheeranand Naini Allahabad 211008
Vijay Nagar Haweliya Jhusi Allahabad 211019
Just infront sbi bank jasra, jasra allahabad 212107
169 C Railway Colony Lahertara Varanasi

8601084412 172 B Railway Colony Lahertara Varanasi

MIG-2 Block C-19 ADA Colony Naini Allahabad
9452423000 S13/22 A Ramashankar Ngr Colony Chuppeypur Shivpur
9125768535 EC 82 ADA Colony Naini Allahabad
9696361325 5/1 Devrakh road Allahabad
9838966111 111,gangapuram colony Naini Allahabad
9450023644 Mahanagar,Lucknow

DATA ANALYSIS

2.19 DATA ANALYSIS

TABLE-1:
AGE GROUP
20-24
25-35
36-50
51-60
ABOVE 60
TOTAL

PERCENTAGE
9
31
43
15
2
100

GRAPH-1:

AGE
above 60; 2%
51-60; 15%

20-24; 9%
25-35; 31%

36-50; 43%

Analysis:
It was found that about 9% of people were between age group of 20-24,31% were
between 25-35,43% were between 36-50,15% were between 51-60 and 2% were
above 60.

Interpretation:
Thus we conclude that the average percentages of people in the above age groups
showed interest in the survey of LICHFL.

TABLE 2:
RESIDENCE IS
Owned
Rented
Company Provided
Parental
TOTAL

PERCENTAGE
47
13
4
26
100

GRAPH 2:

RESIDENCE

Parental; 36%
Owned; 47%

Company provided; 4%
Rented ; 13%

ANALYSIS:
It was found that % of the candidates has owned residence, % of the candidate has
rented residence, % of the candidate has company provided residence and % has
parental residence.

INTERPRETATION:
Major respondent have owned residence or parental residence.

TABLE 3:
If owned then
PERCENTAGE
6
41
47

Financed
Self-Financed
TOTAL

GRAPH 3:

IF OWNED
Financed; 13%

Self-financed; 87%

ANALYSIS:
It was found that 13% of candidate have financed there resident through loans and
87% have financed through there owned fund

INTERPRETATION:

Thus it can be concluded that more people prefer to financed there resident through
owned fund then loans.

TABLE 4:
Are you interested in taking loan for extension and renovation?
PERCENTAGE

YES
NO
TOTAL

4
96
100

GRAPH 4:

LOAN FOR EXTENSION & RENOVATION

Yes; 4%

No; 96%

ANALYSIS:
It was found that 4% of candidates is interested in taking loan for extension and
renovation and 96% are not interested.

INTERPRETATION:

This shows that out of 100 respondents only 4% is willing to take loan for extension
and renovation and rest 96% are not willing.

TABLE 5:
PURCHASING HOUSE?
YES
NO
TOTAL

PERCENTAGE
20
80
100

GRAPH 5:

PURCHASING HOUSE
Yes; 20%

No; 80%

ANALYSIS:
It was found that 20% of respondent is willing to purchase house and rest 80% is not
interested.

INTERPRETAION:

Major respondent dont prefer to buy property as they have their owned property or
parental property but the people those who have rented resident or co. provided
resident they are willing to buy property.

TABLE 6:
If yes how are you planning to finance it?
PERCENTAGE
19
1
20

LOAN
OWN FUND
TOTAL
GRAPH 6:

HOW TO FINANCE?
Own funds; 5%

Loan; 95%

ANALYSIS:
95 % of respondents preferred home loan while 5% did not prefer loans.

INTERPRETATION:

Major respondents wanted to buy a property over loan basis as mostly respondents are
service men. Those who did not prefer loan were businessman.

TABLE 7:
If loan, from where?
LOAN FROM WHERE?
SBI
LIC HFL
HDFC
NOT MENTIONED
TOTAL

PERCENTAGE
7
5
1
6
19

GRAPH 7:

LOAN FROM WHERE?

NOT MENTIONED; 32%

HDFC; 5%
LIC HFL; 26%

ANALYSIS:

SBI; 37%

37% Respondent preferred SBI. 26% preferred LICHFL. 5% preferred HDFC. 32%
did not mention anything.

INTERPRETATION:
Maximum proportion of respondents preferred to opt for SBI. This shows that most of
them have faith in SBI. Next preference is LIC HFL and then HDFC.

TABLE 8:
OCCUPATION
SERVICE
BUSINESS MAN
OTHER
TOTAL

PERCENTAGE
67
31
2
100

GRAPH 8:

OCCUPATION
OTHERS; 2%
BUSINESS; 31%

SERVICE; 67%

ANALYSIS:

It was found that 67% of respondent are in service. 31% is indulged in some kind of
business. And other 2% is neither in service nor a business man.

INTERPRETATION:
Mostly respondent are service men then business man.

TABLE 9:
ANNUAL INCOME
BELOW 2 LACS
2 - 5LACS
ABOVE 5 LACS
TOTAL

PERCENTAGE
26
55
19
100

GRAPH 9:

ANNUAL INCOME
ABOVE 5 LAKH; 19%

2-5 LAKH; 55%

BELOW 2 LAKH; 26%

ANALYSIS:
It was found that 26% of candidates are below 2 lacs. 55% are between 2-5 lacs.
While only 19% are above 5 lacs.

INTERPRETATION:
Thus it can be conducted that maximum income group was found between 2-5 lacs.

Table 10:
Most preferred organization for taking home loan?
MOST PREFERRED ORGANISATION
SBI
LIC HFL
INDIA BULLS
HDFC
DHFL
OTHER
TOTAL

GRAPH 10:

PERCENTAGE
62
24
3
9
1
1
100

MOST PREFERRED ORGANISATION

DHFL; 1% OTHERS; 1%
HDFC; 9%
INDIA BULLS; 3%
LIC HFL; 24%
SBI; 62%

ANALYSIS:
62% Respondent preferred SBI. 24% preferred LICHFL. 9% preferred HDFC. 3%
preferred INDIA BULLS.1 % preferred DHFL.1% preferred others.

INTERPRETATION:
Maximum proportion of respondents preferred to opt for SBI. This shows that most of
them have faith in SBI. Next preference is LIC HFL and then HDFC.

CHAPTER-5
ACTIVITY CHART

5.1 ACTIVITY CHART

WORK PLAN
S.NO.

DATE

ACTIVITIES

Start work (Discussion about the topics for study)

Initial study (Selection of topic for initial study)

Secondary data collection

Primary data collection

Data analysis / interpretation

Project completion (Discussion with the project guide and reporting

here)
Summer internship Programme end of stage

CHAPTER-6
KEY LEARNING

KEY LEARNING
1) The Process of all types of home loan taking.
2) Document Required for Loan Sanction.
3) Document Required for Loan Disbursement.
4) How to determine the Processing fees applicable for various customers.
5) Process of Customer Verification.
6) How the Manager deals with the various customer.
7) How to determine loan eligibility based on EMI chart.
8) Minimum balance required for qualifying loan

CHAPTER-7
CONTRIBUTION TO ORGANIZATION

7.1 CONTRIBUTION TO THE ORGANIZATION

1.
2.
3.
4.

Visits to the various organization & attract new customers to our company.
In ALLAHABAD, I have visited more than 20 showrooms.
In ALLAHABAD, I have visited more than 50 customers by visiting their residence.
In 1 month I had recommended 5 customers to LIC housing family from my own

reference.
5. Daily calling for customer and asking them to clear their dues.

6.

CHAPTER-8
QUESTIONNAIRE & WEBSITE DETAILS

8.1 QUESTIONNAIRE

This survey is being conducted by the students for the academic requirement of
project on Customers need of Housing Loan.

Name

Gender

No of Dependents

E-Mail Id

Address

Date of Birth :
M

Contact No.

1. Your residence is
Owned

Rented

Company Provided

Please do mention the period at current residence

2. If owned,

Financed

Parental

Years

Self-Financed

a) If Financed,

By whom
__________________
Rate of Interest______________
EMI___________

b) Are you interested in switching housing loan to loan to other company like
LICHFL at 10.10%?
Yes
No
c) Are you interested in taking loan for Extension or Renovation
No

Yes

3. If Rented/ Company provided/ Parental

a) Are you interested in purchasing house?

Yes

No

b) If yes, then how are you planning to finance it?

Funds

Loan

Own

c) If loan, then from where? __________________

4. Educational Qualification _______________________

5. Your Occupation

6. Annual Income

Service - Name of Organization

____________________

Business - Type of Business

____________________

Below 2Lakh

2-5 Lakh

Above 5 Lakh

7. Rank following organization from 1 to 5 according to your preference while taking

home loans
1 - Being Most Preferred to

5 - Being Least Preferred

LICHFL

____________

SBI

____________

INDIABULLS

____________

HDFC

____________

DHFL

____________

8.2 BIBLIOGRAPHY
8.21 BOOKS AND SITE:

BOOKS
LIC HOME LOAN GUIDANCE BOOK
RESEARCH METHODOLOY

SITES
www.lichousing.com
www.moneycontrol.com
www.google.com
www.rupeetimes.com
www.economictimes.indiatimes.com

BY CR KOTHARI