A

SUMMER INTERNSHIP PROJECT REPORT

ON

“THE STUDY OF HOME LOAN "

At

HDFC BANK LTD, AMALNER,

JALGOAN-425401.
SUBMITTED IN PARTIAL FULFULLMENT OF THE REQUIREMENT FOR THE
AWARD
OF
THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

SUBMITTED BY
MR. PATIL SWAPNIL VILAS

MBA II(FINANCIAL MANAGEMENT)

YEAR 2014-2016
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

UNDER THE GUIDANCE OF

Prof. PRAJAKTA DESHMUKH

M.V.P.SAMAJ’S

INSTITUTE OF MANAGEMENT RESEARCH AND TECHNOLOGY

Gangapur Road , Nashik-422002

1
 DECLARATION BY THE STUDENT

I Mr. Swapnil patil conducted survey on topic“THE STUDY OF HOME LOAN

AT HDFC BANK LTD, AMALNER,JALGOAN” from 25TH May to 20th July 2015.

I hereby declare that the information gathered during the specific period shall be
strictly utilized only for the project which is to be completed as per the pursuing in Institute
of Management Research Technology.

I honestly express that the information is not collected with any commercial intention
& motivation. The sole motive is to learn about the social issue & prepare project on it. Thus
the sole object of collection of information is of academic purpose & I assure that collected
information shall put to use only for the project report & nothing else.

PLACE: NASHIK SIGN:

DATE: NAME: SWAPNIL PATIL

2
 DECLARATION BY GUIDE

This is to certify that Mr. Patil Swapnil Vilashas completed the project report
on“THE STUDY OF HOME LOAN AT HDFC BANK LTD, AMALNER,JALGOAN”
. Entitled under my guidance and supervision and submitted the report as per the norms laid
down by SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE. The material that has been
obtained from other sources is duly acknowledged in the report. It is further certified that the
work or its part has not been submitted to any other University for examination under my
supervision. I consider this work for the award of the degree of Master of Business
Administration, in the partial fulfillment of the curriculum.

Place: IMRT, Nashik- Name & Sign of guide

Date:-

3
 ACKNOWLEDGEMENT

I have pleasure in successful completion of this work titled"THE STUDY OF

HOME LOAN AT HDFC BANK LTD, AMALNER,JALGOAN"the special environment
at Amalner.

I would like to take this opportunity to express my sincere thanks & deep gratitude to
Dr. B.B. RAYATE, Institute of Management Research Technology, Nashik, for his constant
encouragement and inspiration throughout the course and for having given me an opportunity
to undertake this project.

I am extremely delighted to express my deep hearted regards to my project guideProf.

PrajaktaDeshmukh , faculty Institute of Management Research Technology, Nashik,has
spent her precious time to direct this academic undertakings without her guidance & valuable
suggestions, this work would have not been completed

I also pay my sincere thanks to all those who have directly or indirectly helped me in
completion of my project till preparation of this report.

PLACE: NASHIK NAME: SWAPNIL PATIL

DATE: SIGN:

4
 EXECUTIVE SUMMARY
The project titled "THE STUDY OF HOME LOAN AT HDFC BANK LTD,
AMALNER” from 25th may to 20July, as The period of research is about 60 days in which
data is collected through interviews and distributing the questionnaire.

As per the rules and regulations set by university, under two years of full time course
of MBA degree, a student has to undertake a project related to management discipline in an
organization like manufacturing industry consultancy firm etc, In this project normally
include data collection, date sorting, data analysis and making inferences from it, under the
guidance of that organizational guide and her educational institution guide.

By choosing the bank HDFC for the project of summer internship program because HDFC
bank is one of the leading bank in banking sector. Owning a home is one of life’s biggest
aspirations, at HDFC their home loan solutions are designed to offer you convenience and
make the journey to your dream home a pleasant one.

5
 TABLE OF CONTENTS

CHAPTER
CONTENTS PAGE NO.
NO.
1. INTRODUCTION 9

1.1 Object of the Project 10

1.2 Introduction (Selection of the topic) 11

1.3 Objectives of the study 12

1.4 Scope of the study 13

1.5 Rationale /Contribution of the study 14

1.6 Limitation of the study 15

2 RESEARCH METHODOLOGY 16

2.1 Method of study 17-20

2.2 Sampling 21

2.3 Data Collection 22

3 PROFILE OF THE ORGANISATION 23

3.2 History & General Information 24-31

3.3 Organisation 32

3.3 Products/Activities 33-34

3.4 Corporate & Functional Practices 35-38

4 REVIEW OF LITERATURE 39

4.1 Meaning and Concepts of the topic 40

4.2 Basic Theories of the Topic 41-55

4.3 Review of Research on the selected topic 56-59

6
 DATA PRESENTATION, ANALYSIS &
5 60-67
INTERPRETATION DATA (1)
6 CONCLUSION & SUGGESTIONS 68

6.1 Finding 69

ABBREVIATI
6.2 Conclusion 70
ONS/ /
6.3 Suggestion 71

APPENDICES /ANNEXURE -

I ABBREVIATIONS 72

II REFERENCES/BIBLIOGRAPHY 73

7
 LIST OF TABLES/ GRAPH
Sr.No. Content Page No.

1. Growth of sanction of HDFC home loan 61

at HDFC Bank.
2. Growth of disbursement of HDFC home 62
loan at HDFC Bank.
3. Month wise Sanction &disbursement of 63-64
HDFC home loan for financial year
2014-15.

4. How is home loan procedure of HDFC 65

Bank?

5. Documentation of home loan at HDFC 66

Bank .

6. Customer preference regarding HDFC 67

Bank on following basis.

LIST OF GRAPH
Sr.No. Content Page No.

1. Growth of sanction of HDFC home loan 61

at HDFC Bank.
2. Growth of disbursement of HDFC home 62
loan at HDFC Bank.
3. Month wise Sanction &disbursement of 63-64
HDFC home loan for financial year
2014-15.

4. How is home loan procedure of HDFC 65

Bank?

5. Documentation of home loan at HDFC 66

Bank .

6. Customer preference regarding HDFC 67

Bank on following basis.

8
 CHAPTER 1 :

INTRODUCTION

9
1.1: Object of the Project:

The meaning of the project is to understand practical knowledge is

quite better to understand than theoretical aspects, learning through books by teachers
or by reading is not enough to get complete knowledge about a particular thing; it
needs practical knowledge which can be obtained from the project or field work.
In this project there is study about the various concept& function of
Credit lending industries and related aspects. With help of Research Field work
student can actually get practical knowledge about Process as well as all Management
aspects.

10
1.2: SELECTION OF THE ORGANIZATION:

I choose bank HDFC for the project of summer internship program

because HDFC bank is one of the leading bank in banking sector. Owning a home is one of
life’s biggest aspirations, at HDFC their home loan solutions are designed to offer you
convenience and make the journey to your dream home a pleasant one. The providing
services features are expertise & in-depth knowledge of the Industry, Quality of Service,
Transparency, Quick Processing, and Power Packed customized Features to suit your Home
Loan requirements.

11
1.3: Objectives of the study:

Following are the Objectives of the study:

1. To study the home loan appraisal process.

2. To understand the organizational structure as well as various aspects related with home loan.

3. To study and understand documentation requirement process of HDFC home loan.

4. To study various statutory and legal norm and restrictions imposed on home loan.

12
1.4 SCOPE OF THE STUDY

The scope of working under the project is very wide. This project is
done under the guidance of Mr. RohidasPatil employee which are work in HDFC
BANK At Amalner. This will help to know the history and profile information of HDFC
BANK. Study will help to understand the procedure of home loan.

The study will help to how to calculate of home loan.The study will
help to understand the term and condition regarding the homeloans. This study will help
to understand the credit exposure norms set by HDFCBANK and Reserve Bank of India
and Improving knowledge about the Home loan under Retail Banking and to have
practical exposure of the home loan scenario in HDFC BANK.

13
 1.5 RATIONALE OF STUDY

Rationale of study refers to the worth and utility of the study from the
future point of view. The project gives the live experience of the various aspects that is
helpful from future point of view. The project provides the opportunity to understand the
concept of different departments in organization & various aspects in working of banking
industry.The project study is very beneficial & quite useful from the future point of view.

14
1.6: Limitations of the study:

1) The major limitation was the availability of time.

2) The report is based on the study of Home Loan afford by HDFC Bank.
3) From organizations point of view maintain secrecy is obstacles for collecting
true information.
4) Some of the information was lacked accuracy due to which approximately
value were used for analysis. Hence, the result also reveals approximate
value.
5) Maximum Secondary data is used.
6) Due to internal norms of organizations they should not disclose all the fair
information to outsiders.

15
 CHAPTER 2 :

RESEARCH METHODOLOGY

16
2.1 METHOD OF STUDY :

Introduction:

Research methodology is a methodology for collecting all sorts of

information and data pertaining to the subject in question. The objective is to examine
all the issues involved and conduct situational analysis. The methodology includes the
overall research design, sampling procedure and fieldwork done and finally the analysis
procedure. The methodology used in the study consistent of sample survey suing both
primary and secondary data. The primary data has been collected with the help of
questionnaire as well as personal observation books, magazine, journals have been
referred for secondary data. The questionnaire has been drafted and presented by the
researcher himself.

What Is Research?

According to John W Best,

"Research is the systematic and objective analysis and recording of controlled observation
that may lead to development of generalization,principles or theories resulting in prediction
and perhaps ultimate control of events”.

According to P V Young,
"Research is a method of studying,analyzing and conceptualizing social life in order to
extend,modify,correct or verify knowledge whether that knowledge aids in construction of
theory in practice of an art”.

17
Characteristics of Research:

a) Research is directed toward the solution of a problem.

b) Research is based upon observable experience or empirical evidence.

c) Research demands accurate observation and description.

d) Research involves gathering new data from primary or first hand source or using existing
data for a new purpose.

e) Research activities are more often characterized by carefully designed procedures, always
applying rigorous analysis.

f) Research involves the quest for answers to unsolved problems.

g) Research is characterized by patient and unhurried activity.

h) Research is carefully recorded and reported.

Types of Research:

1) Descriptive research:
Descriptive research generally precedes explanatory research.Foreg,over time the
periodic tables description of the elements allowed scientists to explain chemical
reaction and make sound prediction when elements were combined.

2) Analytical research:
Analytical research specializes in the provisions of detailed quantitative and
qualitative research and analysis on hedge funds and hedge funds to the investment
industry.

3) Applied research:
Applied research deals with solving practical problems and generally employs
empirical methodologies. Because applied research resides in the messy real world,
strict research protocols may need to be relaxed. For eg, it may be impossible to use a
random sample. Thus, transparency in the methodology is crucial.

18
4) Fundamental research:
Fundamental research means basic and applied research in science and engineering,
the results of which ordinarily are published and shared broadly within the scientific
community, as distinguished from proprietary research and from Industrial
development, designs, production, and product utilization, the results of which
ordinarily are restricted for proprietary or national security reasons.

5) Qualitative research:
The qualitative method investigates the why and how of decision making, not just
what, where, when. Hence, smaller but focused samples are more often used than
large samples.

6) Quantitative research:
Quantitative research gathers data in numerical form which can be put into categories,
or in rank order, or measured in units of measurements. This type of data can be used
to construct graphs and tables of raw data.

7) Empirical research:
This is the type of research that applies observation and experience as the main modes
of gathering data. Data collected in this way is referred to as empirical evidence
which is subjected to qualitative and quantitative analysis then used to answer
empirical questions. This process involves a great deal of planning and is considered
accurate as the researchers records what is observed.

8) Field research:
A study conducted in person, in natural setting outside of a laboratory, possibly
through interviews.

9) Exploratory research:
Investigation into a problem or a situation which provides insights to the researchers.
The research is meant to provide details where a small amount of information exists.
19
10) Formal research:
Formal research refers to a writing format that is more objective and non-personal. It
has a standard format that researchers are bound to adhere to. Formal research
typically starts from the broad perspective, from general to specific and then back to
the general.

20
2.2 Sampling :

Types of Sampling:

Probability Sampling: Simple Random Sampling, Stratified Random Sampling, Multi-Stage

Sampling .

 What is each and how is it done?

 How do we decide which to use?
 How do we analyze the results differently depending on the type of sampling?

Sampling Technique:

To study the project, a Simple Random Sampling technique.

Simple Random Sampling: -

A simple random sample (SRS) of size n is produced by a scheme which

ensures that each subgroup of the population of size n has an equal probability of being
chosen as the sample.

Research area Amalner

Types of Research Descriptive research

Sample population & Unit. HDFC BANK, Amalner

Primary Data Questionnaire, Interview.

Secondary Data By Website& books, Journals etc.

Analysis of Data Percentage, Table, chart

21
2.3 DATA COLLECTION :

 Primary Data:
When the data is collected through observation or through direct
communication with respondent is one form or another or through personal
interview, it is called as “Primary Data”.
When the data is gathered first hand or collected a fresh and for the
first time and thus it is original.

 Secondary Data:

The data, which has already been gathered for some other purpose
when it is used, is called “Secondary data”. Secondary data means data that are
already available or collected by someone else.

Since the study is based on practical aspects of the industry so the

information provided by the directly from people in use besides the theoretical
aspects are taken from the secondary sources.

22
 CHAPTER: 3

COMPANY PROFILE

23
3.1 HISTORY & GENERAL INTRODUCTION :

HDFC (Home Development Finance Corporation) Home Loan, India have been serving the
people for around 3 decades and providing various housing loan according to their varied
needs at attractive and reasonable interest rates. Owing to their wide network of financing,
HDFC Home Loans provide services at doorstep and helps you find a home as per your
requirements.

COMPANY PROFILE :

HDFC bank is a leading private sector bank and financial services

company in India. The bank aspires to be the preferred provider of financial services to
upper- and middle-income individuals and leading corporations in India. The strategy of the
bank over the years have been to provide a comprehensive range of financial products and
services for the customers through multiple distribution channels, with high quality service
and superior execution of the services offered. The bank principally deals into mainly three
business activities which can be categorized as: retail banking, wholesale banking and
treasury operations.

Bank : HDFC Bank Ltd.

Branch : Amalner
Codes : IFSC Code HDFC0002049
MICR Code 425240152
BRANCH Code 002049
Address : Ground Floor, New Plot, Bank Street, Amlner-425401, Maharashtra.

24
COMPANY HISTORY - HDFC BANK

1994 - The Bank was incorporated on 30th August. A new private

sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing
finance company. The bank is the first of its kind to receive an in-principle approval from the
RBI for establishment of a bank in the private sector. Certificate of Commencement of
Business was received on 10th October 1994 from RBI.

The Bank transacts both traditional commercial banking as well as

investment banking. HDFC, the promoter of the bank has entered into an agreement with
National Westminster Bank Pc. and its subsidiaries (NatWest Group) for subscribing 20% of
the banks issued capital and providing technical assistance in relation to the banks proposed
banking business.70 No. of equity shares issued to subscribers to the Memorandum &
Articles of Association on 30th August 1994. On the same date 50,000,000 equity shares
were allotted to HDFC promoters. 50,920,000 shares were allotted to HDFC Employees
Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd December, 1994.

25
PROMOTERS

HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since its inception in
1977, the Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well over a
million dwelling units. HDFC has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a
bank in the Indian environment.

26
BUSINESS FOCUS :
HDFC Bank's mission is to be a World-Class Indian Bank. 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 bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People

CAPITAL STRUCTURE :

As on 31st March, 2015 the authorized share capital of the Bank is Rs.
550 crore. The paid-up capital as on the said date is Rs. 501,29,90,634/- (2506495317/-
equity shares of Rs. 2/- each). The HDFC Group holds 21.64% of the Bank's equity and about
18.87 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's
American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 %
of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,41,457
shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS)
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's
Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN
No US40415F2002.

27
 DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2,544 branches
spread in 1,399 cities across India. All branches are linked on an online real-time basis. Customers in over
500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account
the need to have a presence in all major industrial and commercial centre’s where its corporate customers
are located as well as the need to build a strong retail customer base for both deposits and loan products.
Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centre’s where the NSE/BSE have a strong and active member base.The Bank also has 9,709 networked
ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and
international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.

28
TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of

information technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its customers.
Multi-branch access is also provided to retail customers through the branch network and
Automated Teller Machines

(ATMs).

The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. The
Bank's business is supported by scalable and robust systems which ensure that our clients
always get the finest services we offer.The Bank has prioritized its engagement in technology
and the internet as one of its key goals and has already made significant progress in web-
enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging
its market position, expertise and technology to create a competitive advantage and build
market share.

RATING

Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit
Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's
Fixed Deposit programmed has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible investment
risk". CARE has also rated the bank's Certificate of Deposit (CD) programmer "PR 1+"
which represents "superior capacity for repayment of short term promissory obligations".
Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA ( India
)" rating to the Bank's deposit programmer, with the outlook on the rating as "stable". This
rating indicates "highest credit quality" where "protection factors are very high"

29
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and
Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds
rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the
subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA
(ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA
[Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned
the rating "AAA / Stable" for the Bank's Perpetual Debt programmer and Upper Tier II Bond
issue. In each of the cases referred to above, the ratings awarded were the highest assigned by
the rating agency for those instruments.

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced value
creation and corporate governance practices" in future. The bank was assigned a 'CRISIL
GVC Level 1' rating in January 2007 which indicates that the bank's capability with respect to
wealth creation for all its stakeholders while adopting sound corporate governance practices
is the highest.

SERVICES

Retail Banking :

In retail banking, their principal competitors are the large public sector banks, which have
much larger deposit bases and branch networks,, other new private sector banks and foreign
banks in case of retail loan products. The retail deposit shares of the foreign banks are quite
small in comparison to the public sector banks, and have also declined in the last five years,
which we attribute principally to the competition from new private sector banks. However,
some of the foreign banks have a significant presence among non-resident Indians and also
compete for non-branch based products such as auto loans and credit cards. They face
significant competition primarily from foreign banks. In provision of debit cards and also

30
expect to face competition from foreign banks when we begin offering credit cards. In mutual
fund sales and other investment related products, their principal competitors are brokers and
foreign private banks.

WHOLESALE BANKING

Principal competitors in wholesale banking are public and new private sector banks as well
as foreign banks. The large public sector banks have traditionally been the market leaders in
the commercial lending. Foreign banks have focused primarily on serving the needs of
multinational companies and the Indian corporations with cross- border financing
requirements including trade, transactional and foreign exchange services, while the large
public sector banks have extensive branch networks and large local currency funding
capabilities.

TREASURY

In treasury advisory services for corporate clients, the compete principally with foreign
banks in foreign exchange and derivatives trading as well as SBI and other public sector
banks ion the foreign exchange and money market business.

31
3.2ORGANIZATIONAL STRUCTURE OF HDFC BANK, AMALNER :

Branch Manager

Jayesh Shinde

Assistant Manager

Anil Patil

Department Head of Department Head of Department Head of

Home Loan Gold loan Agriculture loan

Rahul Junjaroa Shakil Shekh Jivan Pimpalkar

32
3.3 PRODUCTS AND SERVICES

HDFC Bank brings back a wide range of loans to cater financial needs.

The bank offers the following loans:

1) Personal loans.
2) Consumer loans.
3) Auto loans
4) Loans against shares
5) Loans against RBI bonds
6) Loans against insurance policy
7) E- Instant loans give the facility of loans approval in the 60 second on the internet.
8) Bank has offices spread all over the country. This extensive network helps HDFC in
providing services to large and well spread out clients. This network of
interconnected offices (on data circuits) helps bank to process application for
purchase of property anywhere in India. HDFC Bank has further established an office
in Dubai and service associates in Kuwait, Oman and Quarter to make to easier for
Middle East based non-resident Indians to apply for loan to HDFC BANK -India.
9) HDFC Bank is pioneer of housing finance in India and has been a leader in business
for the last 23 years. HDFC Bank has vast experience and a very committed and
skilled staff to handle housing loan applications and solving customer problems.

33
HDFC BANK LOAN SCHEME PURPOSE

HDFC BANK Limited offers loans for the following purposes:

 Land purchase
 Home construction/purchase
 Home extension
 Home improvement loans
 Short-term bridge loans
 Non-resident premises loans for professionals.

34
3.4) Corporate & Functional Practices

ROLE OF FINANCE MANAGER

The finance manager will use data analyses and educated guesses to
approximate the value, but it's extremely rare that s/he can be 100% sure of the future cash
flows.Figuring out the value of an operation is one thing, but it is another thing to figure out
if it's worth financing. There is a cost to investing money, either the opportunity cost of not
investing it elsewhere, the cost of borrowing money, or the cost of selling equity. The finance
manager uses a number of tools, such as setting the cost of capital (the cost of money over
time, which will be explored in further depth later on) to determine the cost of financing.At
the same time that this is going on, the financial manager must also ensure that the business
has enough cash to pay upcoming financial obligations without hoarding assets that could
otherwise be invested.

This is a delicate dance between short-term and long-term responsibilities.The CFO is

the head of the financial department and is responsible for all of the same things as his/her
subordinates, but is also the person who has to sign off that all of the company's financial
statements are accurate. S/he is also responsible for financial planning and record-keeping, as
well as financial reporting to higher management.The financial manager is not just an expert
at financial projections, s/he must also have a grasp of the accounting systems in place and
the strategy of the business over the coming years .

35
 ROLE OF MARKETING MANAGER

Organizational Role

The Marketing Manager (Retail) typically serves as member of senior management. As such,
the Marketing Manager (Retail) provides strategy formulation. The organization will depend
on this person's vision implementation. The Marketing Manager (Retail) generally is
responsible for operational responsibility. As such, the Marketing Manager (Retail) provides
cost and risk management. The organization will depend on this person's enterprise view. ..

Marketing Manager (Retail) Job Responsibilities

The Marketing Manager (Retail) generally has the following responsibilities:

 Develops and executes business plans for product marketing and the expansion of the
customer base.

 Manages the profitability of retail marketing, establishes guidelines for markets to serve,
market share, pricing, and retail outlets ownership.

 Identifies new business opportunities; creates and ensures positive relationships with
existing and potential clients.

 Manages and develops the sales and marketing teams and associated budget. Ensures
compliance with health and safety regulations. ..

Marketing Manager (Retail) Competencies

The complete Marketing Manager (Retail) Manager's Guide includes the 45 key
competencies expected of Marketing Manager (Retail). The report defines each Competency
in detail. The report also explains what level of proficiency Marketing Manager (Retail)
should have in that Competency, as well as how important that Competency is to performing
the role well.

36
 ROLE OF HUMAN RESOURCE MANAGER

Related Reading:

Training and Development

Employee training and development includes new hire orientation, leadership training and
professional development seminars and workshops. Human resource managers oversee needs
assessments to determine when training is necessary and the type of training necessary to
improve performance and productivity. Human resource managers responsible for conducting
needs assessment have a hands-on role in evaluating overall employee performance to decide
if the workforce would benefit from additional training and orientation. They examine
employee performance records to identify areas where employees could improve through job
skills training or employee development, such as seminars or workshops on leadership
techniques.They also play an integral role in implementing employee development strategy
and succession planning based on training and professional development.

Human resource managers responsible for succession planning use their knowledge of
employee development, training and future business needs to devise career tracks for
employees who demonstrate the aptitude and desire for upward mobility.

Employee Relations
Although the employee relations specialist is responsible for investigating and resolving
workplace issues, the human resource manager has ultimate responsibility for preserving the
employer-employee relationship through designing an effective employee relations strategy.
An effective employee relations strategy contains specific steps for ensuring the overall well-
being of employees. It also ensures that employees have a safe working environment, free
from discrimination and harassment. Human resource managers for small business conduct
workplace investigations and resolve employee complaints. Human resource managers may
also be the primary contact for legal counsel in risk mitigation activities and litigation
pertaining to employee relations matters. An example of risk mitigation handled by a human
resource manager includes examining current workplace policies and providing training to
employees and managers on those policies to minimize the frequency of employee
complaints due to misinterpretation or misunderstanding of company policies.

37
 Recruitment and Selection
Human resource managers develop strategic solutions to meet workforce demands and labor
force trends. An employment manager actually oversees the recruitment and selection
processes; however, an HR manager is primarily responsible for decisions related to
corporate branding as it relates to recruiting and retaining talented employees. For example, a
human resource manager in a health care firm might use her knowledge about nursing
shortages to develop a strategy for employee retention, or for maintaining the current staffing
levels. The strategy might include developing an incentive program for nurses or providing
nurses with cross-training so they can become certified in different specialties to become
more valuable to the organization. Corporate branding as it relates to recruitment and
retention means promoting the company as an employer of choice. Human resource managers
responsible for this usually look at the recruitment and selection process, as well as
compensation and benefits to find ways to appeal to highly qualified applicants.

38
 CHAPTER-4

REVIEW OF LITERATURE

39
4.1) Meaning & Concept of the topic

Retail Banking :

In retail banking, their principal competitors are the large public sector banks, which have
much larger deposit bases and branch networks,, other new private sector banks and foreign
banks in case of retail loan products. The retail deposit shares of the foreign banks are quite
small in comparison to the public sector banks, and have also declined in the last five years,
which we attribute principally to the competition from new private sector banks. However,
some of the foreign banks have a significant presence among non-resident Indians and also
compete for non-branch based products such as auto loans and credit cards. They face
significant competition primarily from foreign banks. In provision of debit cards and also
expect to face competition from foreign banks when we begin offering credit cards. In mutual
fund sales and other investment related products, their principal competitors are brokers and
foreign private banks.

In retail banking home loan is the main part, this explain father .

40
4.2 Basic Theories of the Topic.

LOAN AMOUNT :

You can avail of maximum of up to 85% of the cost of the property, including the cost of the
land.

LOAN TENURE :

You can repay the loan over a maximum period of 20 years under both FRHL and ARHL.
Repayment will not ordinarily extend beyond your age of retirement (if you are employed) or
on your reaching 65 years of age, whichever is earlier. However, HDFC Bank will endeavor
to determine the repayment period to suit your convenience.

RATE OF INTEREST :

The rate of interest of HDFC Bank is 8.75%.under the monthly rest option, interest is
calculated on monthly rests. Principal repayment is credited at the end of every month.At
HDFC Bank you have the choice between the normal FRHL and the innovative ARHL.
Alternatively you can also avail the part of the loan under FRHL and balance under ARHL.

HDFC Bank also offers you the option to switch between schemes for the nominal fee.
Interest rates on ARHL will be linked to HDFC’s Retail Prime Lending Rate (RPLR) which
currently is 13.75% .The rate on your loan will be revised every three months from the date
of first disbursement, if there is a change in RPLR, i.e. the interest rate on your loan may
change. However, the EMI on the home loan disbursed will not change. (if the interest rate
increases, the interest component in an EMI will increase and the principal component will
reduce, resulting in an extension of the term of the loan, and vice versa when the interest rate
decreases).customer will be provided with an annual statement indicating the details of the
interest and principal payment made during the year.

41
SECURITY :

Security for the loan normally is first mortgage of the property to be financed and/or such
other collateral security as may be necessary. Interim security may be required, if the
property is under construction. Collateral or interim security could be assigned to HDFC
Bank of life insurance policies, the surrender value of which is at least equal to the loan
amount, guarantees from sound and solvent guarantors, pledge of shares and such other
investments that are acceptable in the HDFC Bank.

Loans from HDFC Bank are available even if you are availing a housing loan from your
employer. HDFC Bank has already entered into arrangements with several employers
enabling employees to avail of loans both from the employer as well as HDFC Bank for the
same property. Please do ensure that the title of the property is clear, marketable and free
from encumbrance. To elaborate there should not be any existing mortgage, loan or litigation
which is likely to affect the title to the property adversely.

DOCUMENTS/SUPPORTING DOCUMENTS TO BE ATTATCHED:

FOR ALL THE APPLICANTS:

1) Allotment letter of the o-operative society/association of the apartment owners.

2) Copy of approved drawings of proposed construction/purchase/extension.
3) Agreement for sale/sale deed/detailed cost estimate from architect/engineer for the
property to be purchased/constructed/extended/renovated.
4) If you have been in your present employment/business or profession for less than a
year, mention an a separate sheet details of the of the occupations for previous five
years, giving position held, reason for change and period of same.
5) Applicable processing fees.

42
 6) Proof of residence: attested copy of any one of the following:
a) Ration card
b) Passport
c) Driving license
d) Voters identity card
e) Current telephone bill/electricity bill/gas bill
7) Proof of identity: attested copy of ay one of the following:
a) Passport
b) Driving license
c) Voters identity car5d identity card issued by the employer (if employed in
state/central government)
d) PAN card
8) Certificate of loan outstanding issued by the lender (for refinance cases only)
9) Any other information regarding your repayment capacity that is necessary and will
assist HDFC Bank in appraising the loan proposal.

ADDITIONALLY

IF YOU ARE EMPLOYED:

1) Verification of the employment form with only part I filled in.

2) Latest original salary slip/salary certificate showing all deductions.
3) If your job is transferable, permanent address where correspondence relating to the
application can be mailed.
4) A letter from your employer agreeing to deduct the EMI towards the repayment of the
loan from your salary. This will expedite the processing of your loan application.
5) Your updated original bank pass book/s or original bank statement/s showing salary
and saving entries for the last six months.
6) A photo-copy of your Form-16 (issued by your employer) for the last assessment
year.

43
IF YOU ARE SELF EMPLOYED:

1) Balance Sheets and Profit & Loss Accounts of the business/profession along with
copies of individual income tax returns for the last three years certified by the
Chartered Accountant.
2) A note giving information on the nature of your business/profession, form of
organization, clients, suppliers, etc.
3) Copies of individual tax chalans for the last three years
4) Copy of advance tax chalan (if any)
5) Your updated original BankPass Book/s or Original Bank Statement/s showing saving
s entries for the last twelve months.

TAX BENEFIT :

You are eligible for certain tax benefits on principal and interest components of a loan under
the Income Tax Act, 1961.

ELIGIBILITY :

The repayment capacity as determined by the HDFC Bank will help in deciding how much
we can borrow (the cost of the property or Rs.1crore whichever is lower). Repayment
capacity takes into consideration factors such as income, age, qualifications, number of
dependents, spouse’s income, assets, liabilities, stability and continuity of occupation and
saving history. And, of course, HDFC’s Bank main concern is to make sure you can
comfortably repay the amount you borrowed.

44
ABOUT THE PRODUCT :

HDFC Bank Home Loans offers you various unique benefits and are
easy to arrange and repayable in easy monthly installments. The terms of the loan can be
structured according to the customer requirement.

Home loans can be applied for by either individually or jointly. Proposed owner of the
property, in respect of which the loan is being sought, will have to be co-applicants.
However, the co-applicants need not be co-owners. Loans can avail up to a maximum of 85%
of the cost of the property (including the cost of the land). HDFC Bank lends up to a
maximum of Rs. 10000000 on a home loan to an individual. You can repay the loan over a
maximum period of 20 years. They determine the loan amount after evaluating the repayment
capacity of the individual. HDFC Bank main concern is to help individuals comfortably
repay the borrowed amount.

SUPERIOR PROCESSING CAPACITY:

HDFC Bank has over the years invested substantially into the computer systems and training.
This has enabled HDFC Bank to respond to customer needs and build up capabilities to
approve loan on the spot or disburse them fast.

BRANCH NETWORK:

HDFC Bank has offices spread all over the country. This extensive network helps HDFC
Bank in providing service to large and well spread out clients. This network of
interconnected offices (on data circuits) helps HDFC Bank to process applications for
purchase of property anywhere in India. HDFC Bank has further established an office in
Dubai and service associates in Kuwait, Oman, Qatar, Bahrain and Saudi Arabia to make it
easier for Middle east based non-resident Indians to apply for the loan to HDFC Bank-India.

45
EXPERIENCED TRAINED STAFF:

HDFC Bank is a pioneer of housing finance in India and has been a leader in the business for
the last 25 years. HDFC Bank has vast experienced and very committed and skilled staff to
handle housing loan applications and solving customer problems.

FREE COUNSELLING:

HDFC Bank believes that it is in the business of providing solutions to an individuals need
for owing a house, and not just in the business of providing finance. Keeping this in mind
bank will provide free counseling to on how and where to buy a house in India (property
services) or what are the prices and trends in the real estate market or what precautions one
should take before buying a house. This service is offered at any of the HDFC’s offices.

LEGAL AND TECHNICAL GUIDANCE:

HDFC Bank has qualified legal and technical staffs who liaise with developer to collect and
scrutinize the property documents and permissions. We have master files of most projects
being developed by the reputed developers. It has always been HDFC’s endeavor to protect
the interest of the borrower, as we believe that the buying a house is one of the most
Important decisions in this life.

FLEXIBLE (CUSTOMIZED) REPAYMENT SCHEMES:

Keeping in mind the fact that each individual has unique problem requiring unique solution,
bank has developed various repayment options like Step Up Repayment Facility (SURF),
Flexible Loan Installment Plan (FLIP) Balloon Payment plan and Structured Repayment
Plan.

46
STEP UP REPAYMENT FACILITY :

HDFC Bank has a hitherto “with you, right through” .This

statement bank proves time and Again by developing close relationship with individual
customers and by constantly developing and marketing in the market new and innovative
products that increase the comfort level of the customers. Along the same philosophy bank
came up with Step Up Repayment Facility which once again reassures customers that bank
helps you achieve your dream.

This facility is especially helpful to those customers who want to get a loan on an amount
that is not falling within the permissible limit of their repayment capacity. It also is in line
with bank aim to provide greater degree of personalization in service and the tools. Hence
there can be the situation wherein the applicant is not in the position to pay the required EMI
which is calculated by the ILPS (Individual loan processing system). In this case offers to let
the applicant use one of the two plans to repay the loan amount.

The EMI Chooser 1 :

In this plan the applicant gets the advantage from bank to select the amount that he wants to
pay as his fist EMI. This means that bank will let the applicant decidewhat amount he can
comfortably pay to bank in the first term of his Loan Repayment Schedule. The system will
calculate the next two EMIs for the next two terms.

The customer can hence decide when he wants to repay the maximum amount of the Loan to
bank and when he wants to repay minimum leftover or remaining amount of the loan in the
form of still smaller EMIs.

47
The EMI Chooser 2 :

This plan is an extension of the aforementioned plan .In this plan bank helps the Applicant by
letting him choose two EMIs .This means that the Applicant can select the amount that he
wants two pay for both the First and the Second terms of his repayment schedule. This
translates into more help and more convenience to the applicant. However the benefits of
these plans don’t stop here.The Applicant can also allocate the term length for which he
wants to pay what amount. This translates into a great advantage to the Applicant. Applicant
can now link.

1. His current salary

2. The rate of average increment,

3. His existing and expected obligations,

4. His existing and expected expenses

5. The length of the term among others.

HDFC Bank can hence assist the Applicant in developing a much more personalized loan
plan as compared to its competitors in the Housing Loan market.The Applicant can also save
money by using these plans .This is because the total Outflow in case of a regular plan is
more as compared to these special plans. The Applicant will hence obtain more benefit in
case of Prepayment and elsewhere.All Loans from bank are subject to Tax exemption and be
treated as Rebate. Hence HDFC bank lets the customer save their hard earned money.

FLEXIBLE LOAN INSTALMENT PLAN (FLIP) :

Another First of its kind product from HDFC bank .This is also to assist the Applicant to
easily secure a loan in the following condition. FLIP is used when the applicant and co-
applicant want to jointly repay the loan. There is however a problem in the situation which
would otherwise not allow the loan to be sanctioned. There are two applicants hence two
incomes .Therefore in the joint payment they can combine their income to repay the loan .Let
there be Mr. A and B who want to take a loan for 14 years .A is the father and B is the son of

48
A .Now consider the situation in which A and B want to take a loan and jointly repay it .But
A is 52 years old and B is only 25 .Hence A will retire after 8 years and will not be repaying
the EMI but B can continue to repay the loan. In that case although there will be a problem
at other places but in HDFC this is solved by taking different incomes in the terms. Hence the
income that will be considered earlier will be the father’s income and at his retirement or at
any other selected stage of repayment we will begin to consider only the income of the son.

The advantage of FLIP in terms of the Applicant is that of joint payment, personalization,
easy repayment, and freedom from many possible problems. In the Illustration the father is
going to pay only for 105 months and after that we are to consider the sons salary only for
the next remaining 60 months.

PARI PASSU/SECOND MORTGAGE ARRANGEMENT:

HDFC has a tie-up with a large number if public sector organizations and banks which
enable us to offer loans to your employees with the flexibility of their spouse also availing a
loan from his/her own employer.

SAFE DOCUMENT STORAGE FACILITIES:

HDFC has state of art storage facilities which are theft and fire proof, at various locations
where loan and property documents are stored. In this way valuable documents are stored
safely over the period of the loan and are released almost immediately after a customer repay
his loan.

ELECTRONIC MAIL:

HDFC through its E-mail services can promptly respond to queries. In addition, HDFC can
promptly send its application form cum brochure and other detail on its loan products by e-
mail to interested individuals. For Non-resident Indians our interactive website offers another
means of contacting us. In our effort to reach out globally dispersed Non-resident Indians, we
will continuously enhance our website.

49
HOME CONVERSION LOAN:

HDFC offer the option of a home conversion loan to its existing customer who are interested
in moving to a new house. Through this scheme the customer can apply to have their existing
loan transferred towards the purchase of the new home. Customers may also apply for an
additional loan amount for the purchase of the new house. This gives the customers the
option of selling t6heir existing house if they wish to, without having to repay their old loan

APPLICATION CAN BE MADE BEFORE SELECTING THE PROPERTY:

Individuals may make an application for the loan even if the property has not been selected
or the construction has not commenced. HDFC can provide assistance in locating an
appropriate house to such customers.

HOME IMPROVEMENT LOANS:

As an exclusive offer to its existing customers HDFC offers Home Improvement Loan up to
100% of the improvement cost as compared to the home improvement loans up to 70% of the
improvement cost offered to the general public.

FEE:

A processing fee of 0.5% of the loan amount applied for rs.5 per rs.1000 of the loan applied
for is payable when the application form is submitted to HDFC. This fee is in the respect of
costs incidental to the application. For example:

Loan applied for Fees

Rs.20000 Rs.100

Rs.100000 Rs. 500

50
On approval of the loan, a loan offer is made to you on acceptance of the offer. You have to
pay an administrative fee of Rs.0.5% of the loan approved. You can also pay the processing
fee and administrative fee upfront i.e. 1% of the loan at the time of submission of the loan
application itself. This fee is in respect of the costs incidental to the application. Taxes as
applicable will be charged on the fees collected.

CHARGES:

For Fixed Rate Home Loan (FRHL) an early redemption charge of 2% of the amount being
prepaid is payable, if the amount being repaid is more than 25% of the opening balance.
However under Adjustable Rate Home Loan (ARHL) option early redemption charges of 2%
is payable only in case of commercial refinance. You may be required to submit the copies of
your Bank Statements or any other documents that HDFC deems necessary to verify the
source of prepayment.

You can make payment for fees and charges by cheque marked “payee’s account only”
drawn on a bank in a city where HDFC has an office or by demand draft (payable at par to
HDFC).

HOW TO APPLY:

Customer can either download (in PDF format) the application form or get the application
form by E-mail. Alternately the customers can collect the application form from any of your
nearest HDFC offices. Customer need to submit it along with supporting documents and
processing fee at any HDFC office that is convenient to the customer. Customers can make
payments by the cheque marked “payee’s account only” drawn on a bank in a city where the
HDFC has an office, by demand draft (payable at part to HDFC) or by cash. Customer can
make an application at any time after they have decided to acquire a house even when the
house has not been selected or construction has not commenced.

HDFC will consider your application, make enquiries as it deems necessary and convey its
decision to you. On acceptance of the offer, you will have to pay an administrative fee for the
loan approved. Customer can take the disbursement of the loan after the property has been
completed and you have invested your own contribution in full (own contribution is the total

51
cost of the property less HDFC’s loan). The loan will be disbursed in full or in suitable
installments (normally not exceeding three in number)taking into account the requirement of
the funds and the progress of the construction, as assessed by HDFC and not necessarily
according to the builder’s agreement.

Process for sanction of Home Loan:

Once the loan is sanctioned, the banks sends you an offer letter mentioning the details of your
Home Loan such as Loan amount, Tenure of the loan, General terms and conditions of the
loan, Rate of Interest etc. If you agree with what is mentioned in the offer letter from the
bank, you will have to sign a duplicate letter of the same for the bank’s records.

Check on valuation/ registration of property

Application Form
technical documents

Legal document
One on One meeting Agreement
submission & check

survey by bank Bank loan sanction Disbursement

52
Application Form :

A duly filled application form is to be submitted by the applicant with attachment of all
documents i.e. photo copy of Identity, age, residence & sign proof like pan card, pass port,
driving license, electricity bill etc. In case of salaried person- Bank Statement, salary slips
of last 3 months, IT Returns last 2 years, Latest form 16, existing loan repayment track record
attested by applicant. In case of SENP- P & L A/c, Balance sheet, last 2 years IT Returns last
2 years, with all schedules attested by C.A. Shop act/SSI certificate/ Sales Tax registration,
Business profile, Last 6 months bank statements of all existing accounts.

One on one meeting :

After successfully filling the application form and submitting it to the authority the next step
is face to face with bank where applicant 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. It is advisable to carry all original documents by the
applicant of whose copy he has submitted along with the application.

Survey by bank :

Bank does survey of property documents. A bank official visits the property site personally to
verify whether the details given are true. The documents submitted by the applicant are cross
verified by the agent of the bank after checking them by the bank official, The agent
personally visits the bank, official, residential address to check the exact status. The
references given in application form are asked about the applicant if needed.

53
Bank Loan Sanction :

Firstly after login of file in loan sanction then process starts. Calculation is done on basis of
the norms by RBI and the amount of loan to be sanction is obtained. CIBIL rating report is
done to know the existing loan payment capacity of the applicant. Later the file is checked by
the credit manager by verifying all the documents of property, income etc.

Legal document submission and check :

A search report and title certificate is obtained from an bank’s advocate who conducts a
survey of a title of property by visiting the office of registrar. A legal opinion can avoid any
legal hassle later & is mandatory to be filed with the agreement for sale.

Check on Valuation and Technical :

The technical appraisal is an important stage in the whole process of availing a housing loan.
The technical appraisal is done on behalf of the bank. The objective is to ensure that all the
documentation related to the property in question like allotment certificate, Karthaetc is in
order. The report of the technical appraisal determines whether the loan can be given for the
property concerned.

The technical officer, on behalf of the bank, verifies the original documents, title certificates,
clearance certificates, guarantees, security documents, income certificates, address proof etc
and cross-checks all the furnished information with the records and documents submitted. A
charge report is submitted by the bank's lawyers directly to the bank.

Registration of property documents :

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

54
Agreement :

This is time of signing the final agreement of the home loan. After the signing of the
agreement a bunch of Post datedcheques are to be submitted as agreed on the agreement
paper.

Disbursement :
Final Disbursement of the Home Loan is made. After the bank ensures financing the property
is 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 mode is part
payment and in the case of ready possession properties disbarment is full and final. Date and
amount for down payment is made by the bank, transaction document which include credit
facility application form.

55
 4.3 Review of Research on the selected topic:
1) Author: Rao K. N. published in 2005.
Title: A Paper entitled “Retail Banking – Emerging Issue in Home
Loan”
Abstract:

In this paper the authors revealed that during 2002-03 housing loans by banks
grew at a hefty growth rate of more than 100%. The factors that contributed to this
aggressive growth in the portfolio of housing loans of banks and HFC are: Tax intensives
on repayment of principal and interest, rising income level of middle class, falling
interest rate, stable real estate prices, easy availability of housing loans, low returns on
the investment opportunities available in the market. They also concluded that although
there is strong growth in housing loans by financial situations in India, we are still behind
the developed countries in terms of housing loans to GDP ratio. In India it is around 2.5%
compared to 57% in the UK and 54% in the US. It shows that there is a vast scope for
54housing loans in India. One economist has argued that every rupee spent on the housing
sector will increase the GDP by more than 75 paise. It also creates a labour intensive.
Despite the immense growth in housing loans there are certain challenges that the banks
might face in the time to come, e.g. falling rate of interest, rising mismatch in the assets
and liabilities of the bank, rising NPA in the housing loan portfolio.

56
2) Author: Bagchi S. In 2008.

Title:A Research Article entitled “Multiple Home Loans – Systematic Gaps

– Suggested Therapy.

Abstract:

Institutional provision of home loans is a societal compulsion and, as such, is a

full scale national priority of emerging economy like India. The existing regulatory and
institutional framework in India for meeting the growing needs of the people “to own
their nest” is fairly adequate and should continue. But recent reports from various sources
indicate that some home loan borrowers have been playing foul with banks in offering
mortgage of the same property to a number of banks by providing false ownership deeds /
documents. Usually this type of fraud appears because Banks, generally, prefer to obtain
simple deposit of title deeds i.e. (mortgage by deposit of title deeds) but it was found that
title deeds of some property were offered by having multiple registrations of the property,
false income details, credit officer not investigating properly borrower’s income level,
genuineness of title deeds etc. Bank lending the loan before accepting mortgage of landed
property as a security cover, title scrutiny and non-encumbrance report from bank’s
approved lawyer. Generally, the lawyer goes through the ownership records of the house
for the past 30 years and submits his reports but in practice, lawyers generally scrutinize
only of photocopies of title deeds so, the recent incidents of fraudulent mortgage
practices need to be dealt with firmly. For this purpose, an external protection for banks
by way of title insurance is an immediate necessity. Skilled and experienced officials may
be entrusted to handle home loan account. Only registered mortgage should be accepted.
In the light of increasing credit risk in home loan accounts, repayment period should not
go beyond 10 / 12 years. If in the process, the quantum of loan is not found justified in
consideration of income level, the applicant should go in for lower-cost home or
alternatively raised unsecured funds. This is the suggestion made by Bagchi in his article.
Safe, sound and healthy loan portfolio in a bank is the product of a robust credit risk
management system duly aided / supported by regulatory supervision and control.

57
3) Author: Archana A. Mahajan.

Title: A Comparative Study of Disbursement of Housing Loan of Public

Private and Co-Operative Banks in Sangli-Miraj-Kupwad Corporation
Area.

Abstract :

The most important asset for a person is generally a residential house.

Ownership of residential property provides psychological satisfaction. There is increase the
demand for home which leads to increase the rate of land & construction. But it is difficult
for layman to purchase a home in single cash payment. So they move towards banks or
financial institutions which help them & give better services & maximum loan amount.
Therefore, here banks plays important role to lend money to needy people. Every bank have
different bank policies e.g. rate of interest, processing fees, maximum loan limit, different
loan period, lease or mortgage procedure, recovery of loan procedure etc.

4) Author :Inderbir kaurAssistant professor, G.S.S.D.G.S, Khalsa College,

Patiala.

Title :Comparative Study of Housing Loan of HDFC and ICICI Bank

Abstract:

Purchasing the home of your dreams is not an easy task. Especially when you
plan to buy a home on loan. Home loans means that you buy a house on installments. In
simpler terms when you want to own a home and cannot afford to pay the amount in lump
sum, you can pay it in monthly installments with an interest rate. There are number of
companies offer cheap loans at a low interest rate You can avail loan against existing house
for renovation or expansion etc. The demand for home loans will not sag much. The reason is
a substantial rise in the income-generating capability of Indian youth. So this particular
section will keep the housing loan demand high and increased lending rates can only shelve
their plans for some time.
58
5) Author :MADRAS UNIVERSITY JOURNAL OF BUSINESS AND

FINANCE Refereed, Peer-reviewed and Bi-annual Journal from the

Department of Commerce

Title : HOUSING LOANS - CUSTOMER PERSPECTIVE (A STUDY CONDUCTED

WITH REFERENCE TO CHENNAI)

Abstract:

Home loans are an attractive and popular means of buying a dream house for
most people. In India, the demand for home loans has increased manifold in the last decade.
The purpose of the study is to study the concept of Home Loan /Housing Finance in today’s
scenario. The home loan market in India has grown at a rapid and alarming rate of over 40%
over the period of the last four years. The reports from one of the industry experts, reveals
that it is evident that there is very little chance that these will be any significant decline in
growth rates in the future. Therefore it becomes important at this point in time to examine the
key factors that have been instrumental in triggering this high growth period. These are
several reasons that can be considered as having attributed to the growth of the home loan
market. On the demand side, the first and the most important factor for the growth has been
faster rise in incomes as compared to property prices, thus making housing more affordable.

59
 CHAPTER-5

DATA PRESENTATION, ANALYSIS &

INTERPRETATION

60
 Table no.5.1: Growth of sanction of HDFC home loan at HDFC
Bank.

YEAR SANCTION (In Crs)

2010-2011 16.14

2011-2012 17.85

2012-2013 19.25

2013-2014 22.62

Graph No 5.1 Growth of sanction of HDFC home loan at HDFC Bank.

Growth
25

20

15

10

0
2010-2011 2011-2012 2012-2013 2013-2014

Source : HDFC Bank Sanction & Disbursement report. (secondary data)

Analysis:

The above graph shows the performance of sanction process during last four year.

Interpretation:

It is found that the growth of sanction process is increasing year by year.

61
Table No.5.2: Growth of disbursement of HDFC home loan at HDFC Bank.

YEAR DISBURSEMENT (In Crs.)

2010-2011 15.94

2011-2012 17.69

2012-2013 18.87

2013-2014 21.49

Graph no. 5.2 : Growth of disbursement of HDFC home loan at HDFC Bank.

Growth
25

20

15

10

0
2010-2011 2011-2012 2012-2013 2013-2014

Source : HDFC Bank Sanction & Disbursement report.(secondary data)

Analysis:

The above graph shows the performance of Disbursement process during last four year.

Interpretation:

It is found that the growth ofDisbursement process is increasing year by year.

62
Table No.5.3 :Month wise Sanction &disbursement of HDFC home loan for
financial year 2014-15.

MONTH SANCTION DISBURSEMENT

( Cr. ) ( Cr.)

April 1.42 1.39

May 1.56 1.41

June 1.6 1.67

July 2.34 2.05

August 2.11 2.00

September 1.98 1.98

October 1.72 1.69

November 2.345 2.29

December 2.425 2.39

January 1.17 1.05

February 1.63 1.42

March 2.32 2.15

Total 22.62 21.49

63
Graph no.5.3 :Month wise Sanction &disbursement of HDFC home loan for
financial year 2014-15.

2.5

2
In Crs

1.5

1 Sanction
0.5 Disbursement

Months

Source : HDFC Bank Sanction & Disbursement report.(secondary data)

Analysis :

The above graph shows the fluctuation in month wise sanction & Disbursement

of home loan.

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Table No. 5.4 :How is home loan procedure of HDFC Bank?

SR.NO PARTICULARS NO.OF %

RESPONDENT

1 Satisfied 44 88

2 Unsatisfied 06 12

Total 50 100

Graph no 5.4 : How is home loan procedure of HDFC Bank?

Unsatisfied,
6, 12%

Satisfied
Satisfied, 44, Unsatisfied
88%

source: Secondary data

Analysis :

The above pie chart shows the 88% of the customer are satisfied with the procedure while
12% are unsatisfied.

Interpretation:

It is found that most of customer are satisfied because of the service provided by the
employees at various areas.

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Table No. 5.5 :Documentation of home loan at HDFC Bank .

SR.NO PARTICULARS NO.OF %

RESPONDENT

1 Satisfied 47 94

2 Unsatisfied 03 06

Total 50 100

Graph no.5.5 :Documentation of home loan at HDFC Bank .

Unsatisfied, 3,
6%

Satisfied

Satisfied, 47, Unsatisfied

94%

Analysis :

The above pie chart shows the 94% of the customers are satisfied with the Documentation
while 6% are unsatisfied.

Interpretation:

It is found that most of customers are satisfied because of the improper information provided
by the employees at various areas.

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Table No. 5.6: Customer preference regarding HDFC Bank on following
basis.

SR.NO PARTICULARS NO.OF

RESPONDENT

1 Good Service 24

2 Rate of Interest 18

3 Easy Documentation 17

4 Wide Networking 13

5 None 05

Graph No. 5.6 : Customer preference regarding HDFC Bank on following basis.

30
Y
25
No. Of Respondents

20 Good Service
Rate of Interest
15
Easy Documentation
10
Wide Networking
5 None

0
X
Criteria

Source : secondary data

Analysis :

The above pie graph shows that most the customer prefers the HDFC Bank on the basis of
good service.
Interpretation:
It is found that most of customer are satisfy with good service of HDFC Bank.

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 CHAPTER-6

CONCLUSION & SUGGESTIONS

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6.1)Findings

1. The performance of sanction process during last four years shows the growth in
sanction process every year is increasing and in last four years it is reached to 22.62
Cr from 16.14 Cr.
2. The performance of Disbursement process during last four years shows the growth in
Disbursement is also increasing.
3. The 88% of the customer are satisfied with the procedure while 12% are dissatisfied.
4. The 94% of the customer are satisfied with the procedure followed by bank as per as
Documentation concert while 6% are dissatisfied.

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6.2 Conclusion

1. HDFC Bank is one of the leading loan providers in banking sector.

2. Product & Services of HDFC Bank are very well known to customers.
3. Documentation process of HDFC Bank is easy and comfortable.
4. Majority customers prefer HDFC Bank because of easy process.
5. Customer service is very good in HDFC Bank..
6. Most of the customer prefers the HDFC Bank on the basis of the good service
and brand name.

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6.3 Suggestions

1) HDFC Bank needs to maintain their retain customer.

2) HDFC Bank should reduce their operating expenses.

3) HDFC Bank needs to attract customers for deposits as well as borrowing of loans.

4) There are no of customer suggestions for improving loan scheme and products so should
be study and revise time and again.

5) Customer are focal point of service industry that to banking industry. Hence proper
awareness about loan scheme should be created among them.

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 Appendices :

II) Abbreviation

HDFC: home development Finance Corporation.

NYSE:New York Stock Exchange.

ADS:American Depository Shares.

GDR:Global Depository Receipts.

FII: Foreign Institutional Investor.

ATM: Automatic Teller Machine.

CARE: Credit Analysis Research.

FD: Fixed Deposit.

GVC: Governance Value Creation.

CRISIL: Credit Rating Information Service of India Ltd.

RPLR: Retail Prime Lending Rate.

ARHL: Adjustable Rate Home Loan.

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III) Bibliography

Books& Sites:

Books

Research Methodology By C. R. Kothari

HDFC Bank sanction & Disbursement report.

Annual report 14-15

Sites

www.hdfc.com

www.moneycontrol.com

www.google.co.in

www.rupeetimes.com

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