A

PROJECT REPORT ON
COMPARATIVE ANALYSIS OF HOME LOAN SCHEMES OF HDFC LTD.
WITH OTHER FINANCIAL PLAYERS.

Submitted By : Guided & Approved By :

ABHISHEK SAINI M r. NISHIKANT PANDEY

MBA 3rd ( FINANCE) (BRANCH MANAGER)

(TRAINEE) TRAINER

HDFC LTD, BHILAI HDFC LTD , BHILAI

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 DECLARATION BY THE CANDIDATE

I the undersigned solemnly declare that the report of the research work entitled -

“ANALYSIS OF HOME LOAN SCHEMES OF HDFC LTD WITH OTHER FINANCIAL

PLAYERS ” is based on my own work carried out during the course of my study under the

supervision of Mr. Nishikant Pandey. (Branch Manager, HDFC LTD, BHILAI)

I assert that the statements made and conclusions drawn are an outcome of my research

work. I further declare that to the best of my knowledge and belief the report does not contain any

part of any work which has been submitted for fulfillment of the summer training and award of the

certificate from HDFC LTD, Bhilai.

(Signature of the Candidate)

ABHISHEK SAINI

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 ACKNOWLEDGEMENT

This report bears the imprint of many persons, who have helped me in numerous ways in
writing this report. It gives me great pleasure in presenting this report to “Housing
Development Finance Corporation Limited”, Bhilai. I would like to take this
opportunity to extend my heartily gratitude to all those who helped me in presenting this
report. Their contribution no matter big or small has contributed immensely towards
completion of this report.

I fall short of words to express my gratitude to all the respondents who gives me their
valuable time and responses for my data collection for this project report. I acknowledge my
deep sense of gratitude to MR. Nishikant Pandey (Branch Manager, HDFC LTD, BHILAI)
for his generous guidance & advice before & during the course of this work.

I am also extremely grateful to whole HDFC Employees and HDFC LTD staff to support
me for completing my project report.
My overriding debt is to my parents and my siblings who provide me with the moral
support & inspiration needed to prepare this report.

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 Table of Contents

CHAPTERS PAGE NO.

CHAPTER 1. INTRODUCTION------------------------------------------ 5

CHAPTER 2. COMPANY PROFILE------------------------------------ 6

CHAPTER 3. MARKET PLAYER--------------------------------------- 18

CHAPTER 4. RESEARCH METHODOLOGY------------------------ 33

(a) Objective of the study.

(b) Research Plan.

(c) Data Collection.

(d) Sampling Plan.

CHAPTER 5. DATA ANALYSIS AND INTERPRETATION-------- 36

CHAPTER 6. FINDINGS ---------------------------------------------------- 41

CHAPTER 7. RECOMENDATIO ----------------------------------------- 42

CHAPTER 8. LIMITATIONS---------------------------------------------- 43

CHAPTER 9. CONCLUSION---------------------------------------------- 44

CHAPTER 10. BIBLIOGRAPHY------------------------------------------ 45

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CHAPTER 1- INTRODUCTION TO THE STUDY

At present there is large number of housing finance companies are existing in market

which provides home loans. One of the major and leading company is HDFC LTD,

they have number of housing products. Now, this research report contains study about

Comparative analysis of home loan schemes of hdfc and various financial players, this

study provides conclusion regarding various parameters of home loans like ROI,

Eligibility ,Area of Fundings and so on is being compared between hdfc and other

players .

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CHAPTER 2- COMPANY PROFILE

HDFC is a leading provider of Housing Finance in India. With our customised solutions
we have fulfilled over 6.2 million dreams since inception. HDFC Bank offers numerous
benefits on home loans. Enjoy smooth and easy processing, and no hidden charges. Our
additional home loan benefits include counselling and advisory services for acquiring a
property, and free and safe document storage.

You can also enjoy home loan benefits of flexible repayment options and the option to buy
a home anywhere in India.

We offer a slew of additional features on home loans for agriculturists, planters,

horticulturists and dairy farmers, and have special benefits on home loans for
agriculturists.

DESCRIPTION -

 EXPERIENCE
 Pioneered Housing Finance in 1977.
 6.2 million cumulative units financed.
 Gross loans of Rs. 3.8 trillion.
 Over 1.8 million Deposits Accounts.
 A model private Housing Finance Company for developing countries with
nascent Housing Finance markets.
 Undertaken several consultancy assignments in housing finance in various
countries across Asia, Africa and East Europe.

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 CORE VALUES
 Trust , Integrity , Transparency , Professional Service

 OBJECTIVES
 Primary Objective: To enhance the residential housing stock in the country
through the provision of Housing Finance in a systematic and professional
manner, and to promote home ownership.
 Aim: Increase the flow of resources to the housing sector by integrating the
housing finance sector with the overall domestic financial markets

A. GROWTH STRATEGY
 Increase the Return On Equity each year in order to maximise shareholder
value.
 Consistently grow the loan book.
 Maintain low Gross Non-Performing Assets (NPAs)
 Maintain a low cost to income ratio by improving operational efficiency.

B. PRESENCE
 Extensive distribution network of 453 interconnected offices (including 140
offices of HDFC Sales) with outreach programs to several towns and cities all over
India.

 3 representative offices in Dubai, London and Singapore offering Home Loan

products to Non-Resident Indians and Persons of Indian Origin.

 Enhanced distribution through HDFC Sales, HDFC Bank and third party Direct
Selling Associates.

C. FINANCIAL NETWORK
 Diversified Financial Services - Banking, Insurance (Life and General), Asset
Management, Real Estate Venture Capital, Education Loans among others.
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 HDFC and its Group Companies consistently maintain leadership positions in their
respective sectors.

HDFC HOME LOAN PRODUCTS

1) Home Loan

2) Home Improvement Loan

3) Home Extension Loan

4) Land purchase loan

5) Short Term Bridging Loan

6) Loan to Professionals for Non Residential Premises

7) Home Equity Loan

MAJOR OBJECTIVES

 To know about the HDFC home loan and its products.

 To have the first hand information on loan procedure, sanctioning and

disbursement in HDFC ltd.

 To compare the performance of HDFC with other market players.

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Hence the loan application may or may not shuttle through different stages

 APPLICATION STAGE

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

1.Name of borrower
2. Name of co-borrower
3. Income details
4. Family background and permanent address etc
5. Gross Salary
6. Rental

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 7. Other incomes
8. obligations
9. Remarks: This column contains the various findings that the employee has found
out after thorough review of the applicants documents such as bank statement, salary
slip etc.
Hence the interview sheet contains the important findings which the employee has
Collected after careful review of the various documents .The interview sheet helps
to cut corners and helps save time by not having other employees to go through the
documents again and again .It hence acts as a source of quick reference.

After all this has been performed well enough the loan application will be arranged
in a file and all it will be given its loan a/c no which also acts as its file no..
The file is now ready to be sent to the HUB (Senior Officers) where further processing will
take place. Next step is scanning of the documents.

A. SCANNING

In this stage the various important documents of the applicant are scanned. This helps to
create their electronic copy which acts as a ready reference, a proof, and can also be shared
and utilized by other employees of HDFC Ltd

B. DATA ENTRY

The file has been sent to the bank head office or the HUB .At HUB there are many experts
with their own specializations. These officials review the various parts of the file again and
perform many specialized tasks.
Data entry is also one of these tasks .This entry is much more different and
complex as compared to the earlier performed Quick Data Entry.

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 C. RECOMMENDATION OVER (ROVR)

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

D. DOUBLE CHECKING OVER

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

E. SANCTIONING

An authorized sanctioning authority within HDFC itself will review the remarks of Double
Checker. If it considers the loan suitable to be sanctioned it gives it approval . After it has
given its approval stamp the ILPS system will automatically send a letter to the Applicant
that his loan has been sanctioned. After this approval the Applicant can go to whichever
Service Centre to get his loan disbursed.

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 F. SPECIAL CASE

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

G. DISBURSEMENT

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

CREDIT APPRAISAL
Credit appraisal is one of the most important and significant step in the Home Loan
process. In case of home loans we either create new accounts or maintain pre existing
ones. Credit appraisal is however a part of sanctioning new loans or enhancing the existing
one.
Credit Appraisal starts from the moment, the documents for Loan from the customers has
taken, which is then sent to back office for processing which is called HUB.

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 CATEGORIES
In case of Credit appraisal there are three main categories:

1. SALARIED PERSON

Here the Credit Appraisal is done for a salaried person .HDFC try to compute the credit
worthiness of a salaried person .It means that the person should be employed as an
employee in a recognized organization. The organization may be public or private. The
person must have proof to prove his employment like credit documents etc.

2. SELF EMPLOYED PERSON

The nature of Credit Appraisal done for a self employed applicant is slightly more
complex. This is due to the presence of enormous bank statements as well as
transactions involved in business. As conducting Business in modern times is a capital
intensive process the bank statements of self employed persons are large and much more
complex. The statement runs into a large number of pages due to the multiple numbers
of transactions. Apart from that their income statements are also quite complex due to
presence of many components.
Hence in the case of a self employed person demanding a loan the credit appraisal has to
be done very carefully .For this very purpose HDFC Ltd has appointed Specialized
Credit Appraisers and a specialized Self employed Committee. These consist mainly of
Chartered Accountants. They handle the important job of appraising the credit
worthiness of the self employed applicants.

3. SELF EMPLOYED PROFESSIONAL

The self employed professionals include people like Doctors, Chartered accountants ,
Engineers etc. Only HDFC recognizes these professionals as a separate category and has
hence developed a comparatively smoother procedure for their Credit Appraisal and
sanctioning of loan.

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 PRECAUTIONS
The credit appraisal is an important step for both the borrower and HDFC .Hence it
necessary to take all precautions.
All calculations must be done with correct figures. The data entry in the system must
match the actual data. Also care should be taken in places like the decimals and
rounding off. The data entries should not be going outside the space provided to
them.
The source of the data should be mentioned so that another person may easily verify
the facts and figures
Sometimes it may happen that the Applicant has intentionally or by mistake not
mentioned the full status of his obligations. The common situation in this case are
A. He has not revealed of any loan that he may be paying off from an
undisclosed bank account in any other bank
B. He is not disclosing information related to any defaults, Revolving accounts
such as Debit card, Credit card etc.

In these conditions it is difficult to correctly compute the credit worthiness of the person. As
a result an unscrupulous element might get a loan .This will lead to loss to both HDFC and
its honest customers.
The precaution taken by HDFC in this case is that it contacts CIBIL (Credit Bureau of
India Ltd) which is the mega Repository of financial data in India .HDFC electronically
requests CIBIL to reveal information it possesses pertaining to the persons financial
obligations. CIBIL passes on the information by means of a fax containing all revolving
accounts, loans and liabilities.

TERMS AND CONDITIONS OF HDFC HOME LOANS

HDFC has always been market oriented and dynamic with respect resource mobilisation as
well as lending programme. It provides loans to meet all requirements of the customers to
make their house a home. However following are the conditions which are to be met by
the customer before applying for a loan.
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LOAN AMOUNT CONDITIONS

 HDFC finances upto 85% maximum of cost of property (agreement value + stamp
duty + registration charges)
 Repayment capacity takrs into consideration factors such as income, assets,
qualifications, number of dependents, spouse income, liabilities, stability and
continuity of occupation and saving history.
 The loan amount of the individual is also subject to Instalment to Income Ratio (IIR)
which is 40% and Fixed Obligation Income Ratio (FOIR) which is 45%.
 Maximum loan amount to an individual connot exceed Rs 1crore.


SUPPORTING DOCUMENTS

First of all when a customer came all documents are checked by the workstation which are
directly in contact with the customers. Necessary documents required are as follows.

FOR ALL APLICANTS

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

2. Copy of the approved drawings of proposed construction /purchase /extention.
3. Agreement of sale /sales deed /detailed cost estimate cost from architect.
4. If an applicant have been present employment /business or profession for less than a
year, mention on a separate sheet details of occupation for previous five years ,
giving position held, reasons for change and period of the same.
5. Applicable proceesing fees.
6. Residence proof and Identity Proof.
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 RESIDENCE PROOF IDENTITY PROOF

Ration Card Driving License

Passport Passport

Bank Account Statement Pan Card

Voters Identity Card Voters Identity Card

Letter from recognized public authority Identity Card issued by Employer(if

employed in state/central Govt.)

7 Certificate of loan outstanding issued by the lender ( for refinance cases only)

8 Any other information regarding your repayment capacity that is necessary and will
assist HDFC in appraising the loan proposal.

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EMPLOYED CASE

1. Verification of Employment Form with only Part I filled in.

2. Latest original salary slip/salary certificate showing all deductions.
3. If a job is transferable, permanent address where correspondence relating to the
applicant can be mailed.
4. A letter from employer agreeing to deduct the EMI towards repayment of the loan
from applicant salary. This will expedite the processing of loan application.
5. Updated original Bank Passbook/ or Bank Statement for the last six months.
6. Photocopy of Form 16 (issued by the employer) for the last assesment year.

SELF EMPLOYED

1.Balance Sheet , Profit & loss and ITR for the last three years.

2. Business Profile.

3. Copies of individual Tax Challans for the last three years.

4. Copy of advance Tax Challan (if any).

5. Updated original Bank Passbook/ or Bank Statement for the last twelve months.

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CHAPTER 3 – MARKET PLAYERS

OTHER MARKET PLAYERS

1. State Bank of India
2. ICICI Bank
3. Axis Bank
4. PNB Bank
5. Bank Of Baroda
6. LIC
7. Kotak

A. STATE BANK OF INDIA

State Bank of India(SBI), the country largest and oldest commercial bank with a branch network
of over 11000 branches and six associate banks located even in the remotest parts of India. SBI
offers a wide range of banking products and services to corporate and retail customers.

1. RATE OF INTREST
For salaried borrower - UPTO 30 LACKS
finance Category ROI 10 years 15 years 20 years 25 years 30 years

upto women 8.45% Rs. 1237 Rs. 982 Rs. 865 Rs. 802 Rs. 765

80 % men 8.50% Rs. 1240 Rs. 985 Rs. 868 Rs. 805 Rs. 769

Non salaried borrower - UPTO 30 LACKS

finance Category ROI 10 years 15 years 20 years 25 years 30 years

upto women 8.60% Rs. 1245 Rs. 991 Rs. 874 Rs. 812 Rs. 776

80 % men 8.65% Rs. 1248 Rs. 994 Rs. 877 Rs. 815 Rs. 780

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2. TYPE OF PRODUCTS AVAILABLE FOR COUSTOMERS
 Home loan , Mortagage loan
 Top-Up loan.Car loan
 Perasonal loan
 Loan Against Propert
 Equity loan.

3. Tenure of product - 15 – 30 Years.

4. Criteria Of assuring Home Loan Applications

 Requirement of Constituent
 Eligibility according to EMI / NMI ratio
 90% of project cost ---- Whichever is less

5. Maximum Age For Applying Loan - 65 or 70 Years / Depends on product

6. Turn Around Time – 14 Days

7. Maximum loan extended to an Individual – 20 crs.

8. Ratio of Employed v/s Self-Employed -- 60 : 40

9. Modern Techniques – Digital banking products like – YONO , INB ,

TELECALLIMG , CMS etc.
10. Processing Fees – For Home loan – 0.5 % of loan amount
For Mortgage -- 1.0 % of loan amount

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 2 ICICI

Getting a home loan from ICICI Bank is quick and easy. We offer higher eligibility
and lower EMIs at attractive interest rates.
Moreover, application processing through our TABLET and Smart phone
applications ensures faster approval of your home loan.

1. RATE OF INTREST -
 Home Loan – 8.65 %
 Mortagage Loan – 10.50

2. TYPE OF PRODUCTS AVAILABLE FOR COUSTOMERS

 Home loan , Mortagage loan

 Top-Up loan.Car loan

 Perasonal loan

 Loan Against Propert

 Equity loan.

3. Tenure of product

 For Home Loan – Max- 20 years & MIN – 5 Years.

 For Moratgagae Loan -- Max- 15 years & MIN – 5 Years.

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4. Criteria Of assuring Home Loan Applications

 On the basis of salary slip & form 16 ( Employee )

 3 years ITR ( Individual )

5. Maximum Age For Applying Loan –

 For Home loan – 60 years

 For Individual – 65 years

6 Turn Around Time – 15 Days – maximum

7 Maximum loan extended to an Individual – 3 Lakhs to 3 crs.

8 Ratio of Employed v/s Self-Employed -- 40 : 60

9 Modern Techniques – Iloan App is an official app for the convenience of

coustomers

10 Processing Fees – For Home loan – 0.5 % of loan amount

For Mortgage -- 1.0 % of loan amount

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 3 AXIS BANK

1. Rate of Intrest -

Following are the home loan interest rates and charges.

Housing interest rates & charges, are divided into salaried & self-employed
individuals.
For salaried individuals

Sr. Type Loan amount (Rs.) MCLR + Effective Rate

No Mark Up Of Interest
1 Floating Loan amount upto Rs 30 lacs MCLR + 8.50% p.a.
Rate 0.00%
Loan amount upto Rs 75 lacs MCLR + 8.65% p.a.
0.15%
Loan amount above Rs 75 lacs MCLR + 8.70% p.a.
0.20%
Top Up for existing customers Upto 30%- Same rate at
which the home loan is
running
30%-100%- LAP rate shall
be applicable
2 Fixed rate All Loan Amounts - 11.75%
(for 20
years)

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For Self Employed

Sr. Type Loan amount (Rs.) MCLR + Effective Rate

No Mark Up Of Interest
1 Floating Loan amount upto Rs 30 lacs MCLR + 8.55% p.a.
Rate 0.05%
Loan amount upto Rs 75 lacs MCLR + 8.70% p.a.
0.20%
Loan amount above Rs 75 lacs MCLR + 8.75% p.a.
0.25%
Top Up for existing customers Upto 30%- Same rate at
which the home loan is
running
30%-100%- LAP rate shall
be applicable
2 Fixed rate All Loan Amounts - 11.75%
(for 20
years)

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2. TYPE OF PRODUCTS AVAILABLE FOR COUSTOMERS
 Home loan , Mortagage loan
 Top-Up loan.Car loan
 Perasonal loan
 Loan Against Propert
 Equity loan.

3. Tenure of product

 15 – 25 Years depending on age.

4. Turn Around Time – 16 - 20 Days – maximum

5. Ratio of Employed v/s Self-Employed -- 50 : 40

6. Processing Fees – .50 % of Loan Amount

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4 PNB

1. RATE OF INTREST -

 Home Loan – 8.45 %

 OD – 9.80 %

2. TYPE OF PRODUCTS AVAILABLE FOR COUSTOMERS

 Home loan , Mortagage loan

 Top-Up loan.Car loan

 Perasonal loan

 Loan Against Propert

 Equity loan.

3. Tenure of product

 For Home Loan – 25 – 30 Years

 OD -- 25 – 30 Years

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4. Criteria Of assuring Home Loan Applications

 On the basis of salary slip & form 16 ( Employee )

 3 years ITR ( Individual )

 6 months salary slip with bank statement

5. Maximum Age For Applying Loan –

 60 years for Home Loan and OD

6 Turn Around Time – 15 Days – minimum

7 Maximum loan extended to an Individual – 70 lakhs

8 Ratio of Employed v/s Self-Employed -- 40 : 60

9 Modern Techniques – Net banking , Mobile banking.

10 Processing Fees – For Home loan – 0.5 % of loan amount , max 20000 + GSt

For Mortgage -- Rs. 450 + GST

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5 BANK OF BARODA

1. RATE OF INTREST -
 Home Loan – 8.45 %
 OD – 9.80 %

2. TYPE OF PRODUCTS AVAILABLE FOR COUSTOMERS

 Home loan , Mortagage loan
 Top-Up loan.Car loan
 Perasonal loan
 Loan Against Propert
 Equity loan.
3. Tenure of product – Min – 10 Years and Max – 30 Years.
4. Criteria Of assuring Home Loan Applications
 Age , Income , Repayement capacity , Credit history.
5. Maximum Age For Applying Loan –
6. Turn Around Time – 15 Days – minimum
7. Maximum loan extended to an Individual – 70 lakhs
8. Ratio of Employed v/s Self-Employed -- 40 : 60
9. Modern Techniques – Net banking , Mobile banking.
10. Processing Fees

1.For Home loan – 8850/- upto Rs. 20 Lakhs & 11800/- above 20 lakhs.

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 6 LIC

Buying a Home is the costliest purchase in one's life and it is equally important to
choose a Home Loan partner who will look beyond loan transactions. Typically
Home loans being 20-30 years tenure, the terms should be easy to understand and
process simplified with utmost transparency. It’s that sense of security one feels
when taking loan from LIC HFL.

1. RATE OF INTREST

Repayment Period - Upto 30 years | Interest Rate - 8.35%* p.a. to 9.5%* p.a. | Loan
Amount - Min.3L to Max.1Cr | Processing Fees - 0%* - 2%* | Maximum Loan - Upto
90%* | Preferred Partners

 Purchase -
 • Loan Amount : Min.Rs.1,00,000/-
 • Loan to Property cost : 85% of total cost of the property for loans up to 20 Lacs; 80%
of total cost of the property for loans above 20 Lacs and up to 75 Lacs ;75% of total
cost of the property for loans above 75 lacs
 • Loan Term : Maximum term - For Salaried - 30 years, for self employed 20 Years
 • Repayment Mode : Equated Monthly Installments (EMI) - Monthly Rest Basis

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 Construction -
 • Loan Amount : Min.Rs.1,00,000/-
 • Loan to Property cost : 85% of total cost of the property for loans up to 20 Lacs; 80%
of total cost of the property for loans above 20 Lacs and up to 75 Lacs ;75% of total
cost of the property for loans above 75 lacs
 • Loan Term : Maximum term - For Salaried - 30 years, for self employed 20 Years
 • Repayment Mode : Equated Monthly Installments (EMI) - Monthly Rest Basis

 Extension -
 • Loan Amount : Min.Rs.1,00,000/-
 • Loan to Property cost : 85% of total cost of the property for loans up to 20 Lacs; 80%
of total cost of the property for loans above 20 Lacs and up to 75 Lacs ;75% of total
cost of the property for loans above 75 lacs
 • Loan Term : Maximum term - For Salaried - 30 years, for self employed 20 Years
 • Repayment Mode : Equated Monthly Installments (EMI) - Monthly Rest Basis

 Repairs/Renovation -
 • Loan Amount : Min.Rs.1,00,000/-
 • Loan to Property cost : 85% of total cost of the property for loans up to 20 Lacs; 80%
of total cost of the property for loans above 20 Lacs and up to 75 Lacs ;75% of total
cost of the property for loans above 75 lacs
 • Loan Term : Maximum term - For Salaried - 30 years, for self employed 20 Years
 • Repayment Mode : Equated Monthly Installments (EMI) - Monthly Rest Basis

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 Plot Purchase -
 • Purpose : Loan for purchase of residential plotfrom statutory authorities
 • Loan to Property cost : 75% of the property value
 • Loan Term : Maximum term - 15 Years
 • Repayment Mode : Equated Monthly Installments (EMI) - Monthly Rest Basis
 • Rate of Interest : Contact nearest Office for details on the Prevailing Interest Rates
 • Upfront fees : As applicable from time to time


 Plot Purchase -
 • Purpose : Takeover of existing loan from other Financial Institution/Banks
 • Term : Maximum 30 Years for Salaried and Maximum 20 Years for Business
 • Rate of Interest : Contact nearest Office for details on the Prevailing Interest Rates
 • Upfront fees : As applicable from time to time

2. Turn Around Time – 15 Days – minimum

3. Maximum loan extended to an Individual – 3 lakhs – 1 crs.

4. Ratio of Employed v/s Self-Employed -- 40 : 60

5. Modern Techniques – Net banking , Mobile banking.

6. Processing Fees – 0 % - 2% of loan amount

7. Repayement period – upto 30 years
8. Maximum tenure – 30 years

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7 KOTAK

1. Rate Of Intrest –

 Under 50 lakhs - 8.65 %

 Upto 50 lakhs – 8.70 %

2. Area of Funding – under nigam Raipur, Bhiali, Bilaspur

3. Processing Cost - .5 % of loan amount & Rs. 550 of Bouncing

4. No. of files login – 15 to 20 monthly

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8 HDFC

1. RATE OF INTREST -
 Home Loan – 8.70 %
2. TYPE OF PRODUCTS AVAILABLE FOR COUSTOMERS
 Home loan , Mortagage loan

 Top-Up loan.Car loan

 Perasonal loan

 Loan Against Propert

 Equity loan.

3. Tenure of product – Min – 10 Years and Max – 30 Years.

4. Criteria Of assuring Home Loan Applications
 Age , Income , Repayement capacity , Credit history.
5. Maximum Age For Applying Loan – 70 years
6. Turn Around Time – 10 Days – minimum
7. Maximum loan extended to an Individual – 20 crores
8. Ratio of Employed v/s Self-Employed -- 70 : 30
9. Modern Techniques – Net banking , Mobile banking.
10. Processing Fees –
 Salaried – Min 3000 + GSt , Max 10000 + GSt
 Self- Employed – Min 4500 + GST , Max 0.5% + GST.

32
CHAPTER 4 – RESEARCH METHODOLOGY

(a). Objectives of the Study

 To know about the HDFC home loan and its products.

 To have the first hand information on loan procedure, sanctioning and

disbursement in HDFC ltd.

 To compare the performance of HDFC with other market players.

(b). Research Plan

RESEARCH PLAN

Research Design Exploratory

Research Method Used Interview, Observation

Research Instrument Used Questionaier

Sampling Plan Convenient

Sample Area Bhilai, Durg

Sample Size 8 Banks

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(c). Data Collection
This study is based on both primary and secondary data. Primary data is collected by taking
response of Branch Managers of Various Bnanks. Secondary data has been collected by
studying websites given by bankers were also used.

SOURCE OF DATA
The task of data collection begins after a research problem has been defined and research
design chalked out. While deciding about the method of data collection to be used for the
study, the researcher should keep in mind two types of data i.e. primary and secondary.
Source of Data is fully approved by Branch managers only with Seal sign.

PRIMARY DATA
The primary data are those, which are collected afresh and for the first time, thus happen to
be original in character. There are several methods of collecting primary data, particularly
in surveys and descriptive researches important once are:

 Source of Primary Data

o Observational Method

o Interview Method

o Survey

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SECONDARY DATA
The secondary data, on the other hand, are those, which have already been passed through
the statistical process. When the researcher utilizes secondary data then he has to look into
various sources from where he can obtain them Secondary data may either be published data
or unpublished data.

 Source of Secondary Data:

o Study of files of existing customers which includes both fully disbursed and
partly disbursed
o Technical reports
o Books, magazines and newspapers
o Reports and publications of various associations connected with business and
industry etc.
o Reports prepared by research scholars, universities, economists, etc in different
fields.

Research Approach
Interview: In this study I have used interview and observation technique as a research
approach.

Contact Method

Direct Method – In this I moved to particular Branch of various banks to gather accurate
information according to my questionaier and research.

(d). Sampling Plan

o Sample Size: 8 Banks

.
o Sampling Technique- Convenient

o Sample Area: Durg, Bhilai

35
CHAPTER – 5 DATA ANALYSIS and Interpretation

Here are some parameters according to which analysis is going to be done.

 Rate of intrest

 Amount of disbursement

 Processing Cost

 No. of proposals received during Month.

36
1. Rate of Intrest -

Banks ROI
SBI 8.5
Axis Bank 8.5
LIC 8.35
HDFC 8.7
Bank Of Baroda 8.5
ICICI 8.65
PNB 8.45
Kotak 8.65

ROI
8.8
8.7
8.7 8.65 8.65
8.6
8.5 8.5 8.5
8.5 8.45
8.4 8.35
8.3
8.2
8.1
Bank Of
SBI Axis Bank LIC HDFC ICICI PNB Kotak
Baroda
ROI 8.5 8.5 8.35 8.7 8.5 8.65 8.45 8.65

 INTERPRETATION –
According to data –
 LIC is in 1st place with lowest ROI of 8.35 % and then PNB with 8.45%,
 SBI,AXIS& Bank of Baroda is with 8.50%
 ICICI & KOTAK with 8.65% and at last
 With a high ROI HDFC stands with 8.70%

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2. PROCESSING COST
Banks Procesing cost
SBI 0.25
Axis Bank 0.5
LIC 0.5
HDFC 0.5
Bank Of Baroda 0.5
ICICI 0.5
PNB 0.5
Kotak 0.5

Procesing cost

0.5 0.5 0.5 0.5 0.5 0.5 0.5

Processsing
Cost In
PERCENTAGE 0.25
(%)
Bank
Axis Of Kota
SBI LIC HDFC ICICI PNB
Bank Baro k
da
Procesing cost 0.25 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Axis Title

 INTERPRETATION –
According to data –
 SBI stands with lowest Processing Cost with 0.25%
 Then the other Banks stand with same Processing cost which is 0.25 % of loan
Amount.

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 3. Disbursement
15
Disbursement Amt.
SBI 15 crores
Axis Bank 1.35 crore
LIC 10 crores
HDFC 15 crores
Bank Of Baroda 1.5 crore
ICICI 6 crores
PNB 1.25 crore
kotak 7 crores

Disbursement Amt.
16 15 15
14
12
10
10
CRORES 8 7
6
6
4
1.35 1.5 1.25
2
0
Axis Bank Of
SBI LIC HDFC ICICI PNB kotak
Bank Baroda
Disbursement Amt. 15 1.35 10 15 1.5 6 1.25 7

 Interpretation –
 SBI & HDFC has the highest amount of MONTHLY Disbursement of Amount Of 15 Crores
 In 2nd LIC do 10 Crores of Disbursement.
 In 3rd KOTAK stands With disbursement amount of 7 crores.
 In 4th ICICI Exist with 6 crores of Disbursement.
 BANK OF BARODA Stands with Disbursement amount of 1.50 crore
 And at last with a least no. of market Disbursement bank exist are – AXIS with 1.35 crore & PNB
with 1.35 crore.

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4. No. of Proposals received during Month.

Banks No. of Files Login in MONTH.

SBI 80
Axis Bank 5
LIC 50
HDFC 80
Bank Of Baroda 10
ICICI 20
PNB 10
kotak 20

No. of Files Login in MONTH.

90 80 80
80
70
60 50
No. Of Files Login 50
MONTHLY 40
30 20 20
20 10 10
10 5
0
Bank
Axis Of kota
SBI LIC HDFC ICICI PNB
Bank Baro k
da
No. of Files Login in MONTH. 80 5 50 80 10 20 10 20
Axis Title

 Interpretation –
 SBI & HDFC are the banks who has max. no. of proposals received during month –
QUANTITY is 80
 Then LIC has 50 no. of proposals during Month.
 ICICI & KOTAK with 20 No. of Monthly proposals.
 BANK OF BARODA AND PNB Received 10 No. of file During Month
 At last with lest no. of proposals bank which exist is AXIS with 10 No. of Average Monthly files.

40
CHAPTER – 6 FINDINGS OF THE STUDY

 SBI is a major competitor of HDFC and other banks according to data tabulation results.

 SBI has minimal ROI of 8.5 % with Processing cost of .25 % which is less than other banks.

 Whereas in other side HDFC has highest Rates with 0.5 % of processing cost.

 Bank which contains the lowest rank in Home loan Market is AXIS and PNB due to

disbalance of ROI and Processing cost according to the coustomers also.

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CHAPTER – 7 RECOMMENDATIONS OF THE STUDY

 HDFC LTD, Bhilai should run some special add campaign regarding their branch and
home loan products to reach those who reach firstly HDFC bank for housing finance or
any other financial institution.

 Company should also make some decision regarding funding on projects which they don’t
but their competitors approve.

 Some of the special schemes should also launched by HDFC as Axis has launched 4 EMIs
WAIVED EVERY 4 Years.

 Reach has to be strong via walk in or by using Telephonic or mailing facilities.

 Campaign is must to make understand the each and every aspects of Loan to customer
because due to Misconception Most of the customers prefer Transfering of loan.

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CHAPTER – 8 LIMITATIONS OF THE STUDY

 Reliability of data collected can be biased because it consists of what the

respondents know or feel.

 Some of the informations were not been provided by Branch managers or banks due to
their Norms and confidential purpose.

 Unwillingness of the Bankers to answer in some cases.

 Heavy rain also create problems to work and finding data.

 Because of the busy schedule Bankers may not be answered properly.

 Due to different types of data given by bankers in different form which is not possible
to define or evaluate or analyse each factor of home loans.

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CHAPTER – 9 CONCLUSION

I had concluded after analyzing and interpreting my whole report that HDFC LTD has great

competitive skills and with schemes which HDFC is providing along with its services which is not

going to be seen anywhere, which helps him to maintain a relation with its customers for a long

period but like other banks HDFC should also make clarity of its products to its customers who

wear trying to transfer their home loans..

As well as Campaign is must to attract customers and to spread schemes which will create a chain

of success.

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CHAPTER – 10 BIBLIOGRAPHY

 Walk in to Bank to banks.

 Personal interview of Branch managers
 Websites of Banks were also used during preparation of this project.

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