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PROJECT REPORT ON
To create and formulate this project report, I would be thankful to the entire
individual who
Served me as a true guide and epitome of knowledge.
I would like to thank Mr. AMIT GUPTA, MBA Project guide for anytime and
every time guidance and continuous support. His experience and methodology of
providing training helps me not to perform the desired activity but to accomplish
creativity. I also like to thank my parents and my family members who are always
a support for me.
In the last, but not least, Dr. N.K. Kakkar and other faculty members who are not
only the source of inspiration but a constant motivation.
DECLERATION
I, Prakash Singh, here by declare that I have carried out summer training project
on the topic "Comparative Customer Preference in Public and Private Sector:
Home Loans" in Punjab National Bank.
I further declare that project work is my original work and no part of this report
have been published to or submitted to anybody or university for award of any
other degree or diploma.
PROFILE
OBJECTIVES
BUSINESS/ACTIVITIES
ORGANIZATION
OFFICES
PROCEDURE FOR AVAILING HOUSING LOAN
HERITAGE
LOGIC OF THE LOGO PROFILE
VISION & MISSION
QUALITY POLICY
ORGANIZATIONAL STRUCTURE
CENTRALIZATION BANKING SOLUTION
VARIOUS LOANS
4. PNB SUBSIDIARIES
INTRODUCTION
PRODUCTS AND SERVICES
a. APNA GHAR YOJANA
b. GHAR SUDHARYOJANA
c. LOAN AGAINST PROPERTY
d. LOAN FOR COMMERCIAL PROPERTY
e. FUTURE RENTAL SCRUTIZATION
f. LINE OF CREDIT FACILITY
BALANCE SHEET
6. RESEARCH METHODOLOGY
INTRODUCTION
MEANING OF RESEARCH RESEARCH PROBLEM RESEARCH
DESIGN
7. COMPARATIVE STUDY
SAMPLE SELECTION
SCOPE OF STUDY
DELHI MARKET SEGMENT GRAPHS
8. CONCLUSION
SWOT ANALYSIS
LIMITATIONS
9. APPENDIX
QUESTIONNAIRE
BIBLIOGRAPHY
NATION
HOUSING
BANK
PROFILE
The National Housing Bank (NHB) was established on 9th July 1988 under an
Act of the Parliament viz. the National Housing Bank Act, 1987 to function as a
principal agency to promote Housing Finance Institutions and to provide financial
and other support to such institutions. The Act, inter alia, empowers NHB to:
» Make loans and advances and render any other form of financial assistance to
scheduled banks
and housing finance institutions or to any authority established by or under any
Central, State or Provincial Act and engaged in slum improvement and
NHB has been established to achieve, inter alia, the following objectives:
a. To promote a sound, healthy, viable and cost effective housing finance system
to cater to all segments of the population and to integrate the housing finance
system with the overall financial system.
c. To augment resources for the sector and channelise them for housing.
NHB, as the Apex level financial institution for the housing sector in the country,
performs the following roles:
NHB exercises regulatory and supervisory authority over the HFCs in the matter
of acceptance of deposits by them pursuant to the powers vested in it under the
Act. As per the amendments to certain prov1.sions of the Act, which came into
effect from June 12, 2000, NHB is vested with powers to grant Certificate of
Registration to companies for commencing/carrying on the business of a housing
finance institution. Besides, NHB regulates the deposit acceptance activities in
accordance with the Housing Finance Companies (JHB) Directions, 2001,
amended from time to time, in the matter of ceiling on borrowings (including
public deposits, rate of interest, period, liquid assets, etc). NHB has also issued
Directions on prudential norms in regard to capital adequacy, asset classification,
concentration of credit, income recognition, provisioning for bad and doubtful
debts etc. NHB supervises the working of HFCs through on-site inspection and
off-site surveillance.
(c) Financing:
NHB raises resources for the housing sector towards increasing new housing
stock and provides refinance to a large set of retail lending institutions. These
include scheduled commercial banks, scheduled state cooperative banks,
scheduled urban cooperative banks, specialised housing finance institutions, apex
co-operative housing finance societies and agriculture and rural development
banks. Refinance is provided by NHB under various schemes, which are
formulated taking into account, several aspects of the National Housing Policy,
the constraints facing the sector etc. NHB has also a window for direct lending to
Public Agencies such as, State Level Housing Boards and Area Development
Authorities for large scale integrated housing projects and slum redevelopment
projects. NHB is also operating a special window for extending financial
assistance to the people affected by natural calamities viz. earthquake, cyclone
etc.
NHB raises resources from diversified sources, both domestic and external by
Issuing Bonds/ debentures, borrowing from RBI and financial
institutions/organizations etc. Under the Act, NHB is authorized to issue and sell
Bonds with or without the guarantee of the Central Government for the Purpose
of carrying on its functions.
NHB launched the "Swarna Jayanti Rural Housing Finance Scheme" to mark the
golden jubilee of India's Independence. The Scheme seeks to provide improved
access to housing loans to borrowers for construction/acquisition/ Up-gradation of
a house in rural areas of the country.
3. Legal
4. Information Technology
5. Enabling Processes
7. Refinancing Operations
8. Project Finance
Head Office:
Regional Office:
• You collect the application form, which is generally available at the reception
counter.
• You pay the processing fees, which is about 1% of the loan amount. The fees are
non-refundable. Generally you are asked to pay the fees only if the chances of the
loan getting sanctioned are really good as per the Officer's analysis.
• The Appraisal Officer prepares the file and discusses the case with the Branch
Manager. The Branch Manager should substantiate recommendations of the
Appraisal Officer. The file is then recommended for sanctioning by the competent
authority.
• The competent authority concerned sanctions the loan proposal. In case there are
some queries, the same have to answer by the Appraisal Officer to the satisfaction
of the sanctioning authority.
• If approved, you collect the Loan Offer letter. You fill Property Details form and
Acceptance Note and sign the same. This signifies your acceptance of the
proposal. Then, you are required to collect the disbursement within a month of the
acceptance of the offer letter failing which a Commitment Charge of generally 1%
on the loan is levied.
• The Legal and Technical fees is generally 1% of the loan sanction is paid by the
borrower. The file is then transferred to the Legal department. You submit the
legal documents to the Legal Officer. The Loan Agreement and the other
documents are signed. The Legal Officer then prepares the Legal report after
studying the legal documents in depth.
• The Technical Officer visits the property and submits the technical Report. The
Technical officer as per the stage of completion recommends the amount for
disbursement.
• The Disbursement Memo is prepared and is signed by the Appraisal, Legal and
Technical Officers, and countersigned by the Branch Manager.
• The accounts department prepares the cheque which is then sent to the
authorized signatories. The Disbursement Memo is attached with important
documents like interview sheet, Legal Report, Technical Report, PEMI Status
Report applicable etc.
• The PEMI cheque of the amount disbursed is collected before releasing the
disbursement amount cheque. PEMI is the interest charged on the amount already
disbursed by the company
• Consequent to the final disbursement of the EMI starts which amortizes the
interest and adjust the principle for the tenure allotted.
Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has
the distinction of being the first Indian bank to have been started solely with
Indian capital. The bank was nationalized in July 1969 along with 13 other banks.
From its modest beginning, the bank has grown in size and stature to become a
front-line banking institution in India at present.
Strategic business area covers the large Indo-Gangetic belt and the
metropolitan centers.
Rupee drawing arrangements with M/s UAE Exchange Centre, UAE, M/s
Al Fardan Exchange Co. Doha, Qatar,M/s Bahrain Exchange Co, Kuwait,
Mis Bahrain Finance Co, Bahrain,M/s Thomas Cook Al Rostamani
Exchange Co. Dubai, UAE, and M/ s Musandam Exchange, Ruwi,
Sultanate of Oman.
LOGIC OF THE LOGO
With its presence virtually in all the important centers of the country, PNB offers
a wide variety of banking services which include corporate and personal banking,
industrial finance, agricultural finance, financing of trade and international
banking. The large presence and vast resource base have helped the bank to build
strong links with trade and industry. At the same time, the bank has been
conscious of its social responsibilities by financing agriculture and allied activities
and small-scale industries.
The bank is committed to maintaining the highest standards of service and will be
covering more offices under this quality movement titled 'Alliance with Quality'.
PROFILE
With its presence virtually in all the important centres of the country, Punjab
National Bank offers a wide variety of banking services which include corporate
and personal banking, industrial finance, agricultural finance, financing of trade
and international banking. Among the clients of the Bank are Indian
conglomerates, medium and small industrial units, exporters, non-resident Indians
and multinational companies. The large presence and vast resource base have
helped the Bank to build strong links with trade and industry.
Punjab National Bank is serving over 3.5 crore customers through 4062 branches
and 447 extension counters - largest amongst Nationalized Banks. The Bank was
recently ranked 21st amongst top 500 companies by the leading financial daily,
Economic Times. PNB's attempts at providing best customer service has earned it
9th place among Indias Most Trusted top 50 service brands in Economic
TimesA.C Nielson Survey. PNB is also ranked 368 amongst the top 1000 banks in
the world according to "The Banker" London.
At the same time, the bank has been conscious of its social responsibilities by
financing agriculture and allied activities and small scale industries (SSI).
Considering the importance of small scale industries bank has established 31
specialised branches to finance exclusively such industries.
The bank has been focussing on expanding its operations outside India and has
identified some of the emerging economies which offer large business potential.
Bank has set up representative offices at Almaty: Kazakhistan, Shanghai: China
and in London. Besides, Bank has opened a full fledged Branch in Kabul,
Afghanistan.
Keeping in tune with changing times and to provide its customers more efficient
and speedy service, the Bank has taken major initiative in the field of
computerization. All the Branches of the Bank have been computerized. The Bank
has also launched aggressively the concept of "Any Time, Any Where Banking"
through the introduction of Centralized Banking Solution (CBS) and over 2000
offices have already been brought under its ambit.
PNB also offers Internet Banking services in the country for Corporates as wen as
individuals. Internet Banking services are available through all Branches of the
Bank networked under CBS. Providing 24 hours, 365 days banking right from the
PC of the user, Internet Banking offers world class banking facilities like anytime,
anywhere access to account, complete details of transactions, and statement of
account, online information of deposits, loans overdraft account etc. PNB has
recently introduced Online Payment Facility for railway reservation through
IRCTC Payment Gateway Project and Online Utility Bill Payment Services which
allows Internet Banking account holders to pay their telephone, mobile,
electricity, insurance and other bills anytime from anywhere from their desktop.
Another step taken by PNB in meeting the changing aspirations of its clientele is
the launch of its Debit card, which is also an ATM card. It enables the card holder
to buy goods and services at over 99270 merchant establishments across the
country. Besides, the card can be used to withdraw cash at more than 11000
ATMs, where the 'Maestro' logo is displayed, apart from the PNB's over 600
ATMs and tie up arrangements with other Banks.
QUALITY POLICY
• To effectively meet customers' requirements and endeavor to achieve total
customer satisfaction.
• To work and act in such a manner that all services rendered in due course of
banking lead to excellence and improved credibility and image of the Bank.
ORGANISATIONAL STRUCTURE
Bank has its Corporate Office at New Delhi and 25 Zonal Offices which in turn
supervise 48 Regional Offices under which the branches function. The delegation
of powers is decentralised upto the branch level to facilitate quick decision making.
BOARD OF DIRECTORS
PNB now brings to you Centralized Banking Solution (CBS). An inter branch
networking and data sharing platform, which makes 'Anytime Anywhere' banking a
reality. With over 1000 branches to be networked in the near future, the status of
costumers is changing from 'Customer of the branch' to 'Customer of the bank'.
• CARLOAN
Q Who can avail Car Loan?
A. Individuals and Business Concerns.
Q Whether the income of the spouse is also taken into account for determining
the amount of loan?
A Yes, income of the spouse can also be taken into account for determining the
amount of loan. In such cases, the spouse shall stand a guarantor.
• PROFESSIONAL LOAN
Q. Who is eligible to get loan under the scheme?
A. The following categories of professionals are eligible to get loan under the
scheme:
• Persons already practicing or new entrants in various professionals, having
licenses issued under Central or State Legislations .
• Associations of persons engaged in a single profession provided that each
member of such an association is qualified and duly licensed to practice in the
profession; and
• The qualified professionals will be required to produce a certified copy of the
license for the record at the bank.
• EDUCATION LOAN
Q. What are the types of education for which education loans are given?
A. Education loans are given for pursuing all types of education viz. general,
professional, technical and vocational courses.
Q. How much loan amount can I avail for pursuing part time computer
courses?
A. In case of part time computer courses, the extent of loan should not exceed Rs.
50,000/ - per annum or fee fixed by the particular institution (as per prospectus less
concession, if any), whichever is less.
• KRISHI CARD
Q. Do I have to pay any additional fee/charge for withdrawing cash from other
than the issuing branch?
A. Yes, if you withdraw cash from the branch other than the issuing branch a
commission @2% is charged and the same is deducted from the cash withdrawn.
SUBSDIARIES
A Subsidiary of Punjab National Bank which was amongst the first ones to get the
license for undertaking activities in the Government Security market, as a primary
dealer in 1996. The company received ISO 9002 certification from British Standard
Institution, making it as the first primary dealer in India to achieve this certification
for its quality systems and procedures. This certificate has been granted to the
company as a whole including its corporate and branch offices.
MISSION
BACKGROUND
In the year 1996 Reserve Bank of India introduced the system of Primary Dealers
with a view to strengthen the institutional infrastructure of Government Securities
market. Six entities were granted licenses of which PNB Gilts was one. The
Company was established as a wholly owned subsidiary of PUNJAB NATIONAL
BANK with an initial paid up capital of Rs.50 crores which is also the minimum
capital requirement for a Primary Dealer.
The net-worth of the Company has increased from Rs.50 crs to Rs.541.33 crs in a
span of 8 years.
RBI, New Delhi, granted its certificate of registration vide its letter dated 10th
February 1998, to carryon the business of a Non-Banking Finance Company. The
Company decided to expand its capital base & came with an IPO of Rs.3.5 crore
shares at an offer price of Rs 30/- per share aggregating Rs.105 crore in July :woo.
This increased the paid up capital of the Company to Rs 135.01 crores and reduced
the holding of Punjab National Bank to 74.07%.
OBJECTIVES
The objectives of the Company are in line with objectives laid down by RBI for the
Primary Dealers:
Besides the above, the Company has been pioneer in retailing of Government
Securities contributing to a deep and broad-based market. The Marketing
Department specifically caters to select segments viz. Provident Funds, Trusts,
Regional Rural Banks, Co-operative Banks, Corporate & Individuals to create
awareness and encourage healthy investment practices.
• Treasury Bills
• Central Government Dated Securities
• State Government Securities
• PSU Bonds
• Inter-Corporate Deposits
• CSGL accounts
• Money market instruments
• Merchant Banking
• Mutual Fund Distribution
In addition to the above, we also offer advisory services to our clients to manage
the government securities portfolio.
The Company has well-defined systems and procedures. The Internal Control &
Management systems are in place and are in accordance with the guidelines issued
By the Regulatory Authorities.
The Company has a lean staff of 38 employees spread over the Country with 31
employees in the Head Office in New Delhi & rest in our branches at Mumbai,
Chennai, Kolkata, Ahmedabad and Bangalore.
During the years the Company has emerged as a leading Primary Dealer in the
country. We have to our credits ...
The first stand alone Primary Dealer to come with an IPO & get listed.
The first PD to achieve ISO 9001:2000 certification.
The first to obtain a PH rating from CRISIL for its short-term borrowing
program. At present the rating from CRISIL is for borrowing up to Rs 250
crore.
The company has achieved a turnover of Rs.116468 crores during 2003-2004,
making it one of the largest debt traders in the country.
PUNJAB
NATIONAL
BANK
HOUSING
FINANCE
LTD.
INTRODUCTION
ELIGIBILITY:
a) Individuals in permanent service or having their own business
(Resident or non -resident).
b) Age of the applicant should not be more than 60 years in case of
service class and 65 years in case of businessman or self employed;
LOAN AMOUNT:
a) Minimum loan amount would be Rs.50,000/- and maximum loan
amount depends entirely on the repayment capacity of the
borrower(s).
b) Actual loan eligibility shall be on the basis of repayment capacity
as determined be PNBHFL taking into account income, age,
qualification and occupation.
c) Income of borrower(s) j co-borrower(s) shall be clubbed together
for calculation of loan eligibility / the level of finance in case of joint
application
MARGIN:
The borrower's contribution shall be minimum 20% of the total cost
of project, including stamp duty and registration charges.
INTEREST RATES: (Effective from 1.07.2006)
LOAN DISBURSEMENT:
For outright purchase of house/flat, the loan amount will be paid in lump-sum to
the vendor at the time of registration after satisfying that the borrower has
paid/provided for the balance amount. For houses/flats under construction, the loan
amount will be disbursed in stages based on the progress of construction.
Disbursement win be made after the property has been technically appraised and all
legal documentation has been completed. The borrower has to invest his
proportionate share of the cost, prior to disbursement of loan.
The loan can be disbursed either in lump sum or installments according to the
requirement of the development authority/society/ private builder.
LOAN REPAYMENT:
Loan repayment shall normally be in Equated Monthly Installments (EMI)
comprising of principal and interest over a maximum period of 20 years. The table
below shows the EMI for a loan of Rs. 1,00,000/- at different rates of interest.
No. of
Years / 9.00
9.25% 9.50% 9.75 10.00 10.25 10.50 10.75 11.00 11.25
Term %
of loan
2076 2088 2101 2113 2125 2138 2150 2162 2175 2187
05
1609 1622 1635 1648 1661 1674 1687 1700 1713 1726
07
10 1267 1281 1294 1308 1322 1336 1350 1364 1378 1392
1015 1030 1045 1060 1075 1090 1106 1121 1137 1153
15
900 916 933 949 966 982 999 1016 1033 1050
20
Under "Ghar Sudhar Yojna", we make available housing finance to individuals for
up gradation, renovation or repair of house/flat. It includes among others, internal
& external repairs, water proofing, roofing, flooring, electrical, woodwork etc.
ELIGIBILITY:
Individuals who are in permanent service or self employed or have their own
business. Age of the applicant should not be more than 60 years.
LOAN DETAILS:
Loan Amount
Minimum amount of loan is Rs. 50,000. Maximum amount of oan shall not exceed
Rs. 10,00,000. Borrower's minimum contribution will be 25% of the estimated cost
of repairs/renovations. Actual loan amount shall be calculated on the basis of
repayment capacity of the borrower as determined by PNBHFL.
SECURITY:
Normally, the security for the loan shall be first charge by way of
Equitable/Registered mortgage of the property. However, PNB Housing Finance at
its discretion, can sanction a loan on the basis of:
• Pari-passu/second charge in the case of Central/State Govt./Public
Sector/Nationalized Bank employees and other similar bodies or
• Other securities such as assignment of LIC policies (surrender value at least
equivalent to the amount of loan), pledge of marketable shares and such other
investments acceptable to PNBHF. Besides this, personal guarantee from sound
and solvent guarantors may be asked for.
LOAN DISBURSEMENT:
A loan will be disbursed in lump sum or in stages (not more than three) based on
the progress of renovation/repair. Disbursement will be made after the property has
been technically appraised and all legal documentation and other formalities have
been completed. The borrower has to invest his share of the cost in full prior to
disbursement of the loan. The borrower is expected to complete the
repair/renovation within six months.
REPAYMENT:
Loan repayment shall normally be in Equated Monthly Installments (EMI)
comprising of principal and interest over a maximum period of 10 years.
8746 8757 8769 8780 8792 8804 8815 8827 8839 8850
1
4569 4580 4592 4603 4615 4627 4638 4650 4661 4673
2
3180 3192 3204 3215 3227 3239 3251 3263 3274 3286
3
2489 2501 2513 2525 2537 2549 2561 2573 2585 2597
4
2076 2088 2101 2113 2125 2138 2150 2162 2175 2187
5
1803 1815 1828 1841 1853 1866 1878 1891 1904 1917
6
1609 1622 1635 1648 1661 1674 1687 1700 1713 1726
7
1466 1479 1492 1505 1518 1531 1545 1558 1571 1585
8
1355 1368 1381 1395 1408 1422 1436 1449 1463 1477
9
1267 1281 1294 1308 1322 1336 1350 1367 1378 1392
10
ELIGIBILITY:
Any individual having regular source of income can apply for the loan. Age of the
applicant should not be more than 55 years.
LOAN AMOUNT:
Minimum loan amount would be Rs. 50,0001-. Maximum Loan Amount would be
50 % of the market value of the property as certified by PNBHF's approved valuer
OR actual loan eligibility as determined on the basis of repayment capacity of the
borrower, whichever is less. In case other earning family members are offered as
co-borrowers, their income can also be clubbed with that of the borrower for
computation of eligible loan amount.
SECURITY:
We shall require Equitable I Registered Mortgage of property against which loan is
being sought. Guarantee of one/ two persons will be required as per existing
guidelines of the company.
LOAN DISBURSEMENT
The loan would be disbursed directly to the borrower in lump sum through his bank
account. Disbursement will be made after the property has been technically and
legally appraised and legal documentation has been completed.
LOAN REPAYMENT
The loan would be repaid by way of Equated Monthly Installments (EMIs)
consisting of principal and interest within a maximum period of 15 years.
Repayment will commence in the month subsequent to the month in which loan
has been disbursed.
ELIGIBILITY:
Any individual having regular source of income can apply for the loan. Age of the
applicant should not be more than 55 years.
LOAN AMOUNT:
Minimum loan amount would be Rs. 50,000/-. Maximum Loan Amount would be
50 % of the market value of the property as certified by PNBHF's approved value
OR actual loan eligibility as determined on the basis of repayment capacity of the
borrower, whichever is less. In case other earning family members are offered as
co-borrowers, their income can also be clubbed with that of the borrower for
computation of eligible loan amount.
INTEREST RATE: (With effect from 1.07.2006) Interest rate both for individuals
and builders will be 12.00%.
SECURITY:
We shall require Equitable/Registered Mortgage of property against which loan is
being sought. Guarantee of one/ twu persons "vill be required as per existing
guidelines of the company.
LOAN DISBURSEMENT
The loan would be disbursed directly to the borrower in lump sum through his bank
account. Disbursement will be made after the property has been technically and
legally appraised and legal documentation has been completed.
LOAN REPAYMENT
The loan would be repaid by way of Equated Monthly Installments (EMIs)
consisting of principal and interest within a maximum period of 10 years.
Repayment will commence in the month subsequent to the month in which loan
has been disbursed.
For the convenience of our borrowers, we have started innovative scheme wherein
we provide loan against assured rental receivable for their owned property which
has been let out to reputed/ govt. companies.
ELIGIBILITY:
Property owners having properties at Metro/Urban/Semi-urban areas who have let
out their properties to Public Sector Undertakings/Government/Semi_ government
and reputed corporate, banks, financial institutions and multinational companies
can avail loan against future rental receivable.
LOAN AMOUNT:
Maximum Loan Amount would be 80 % of the total future rent receivable within
the un-expired period of lease deed subject to a maximum period of 10 years. Loan
amount will be restricted to a maximum of 80% of the market value of the
property.
INTEREST RATE: (With effect from 1.07.2006) The rate of interest will be
11.50%.
MARGIN:
Minimum contribution of the borrower would be 20% of the future rent receivable
with the loan period.
SECURITY:
We shall require Equitable Registered Mortgage of the property against the rental
of which the loan is being sought.
LOAN DISBURSEMENT
In case of purchase of the property, the loan would be disbursed directly to the
borrower, in lump sum or as per demand there from. In case of construction, the
loan would be disbursed in stages (maximum being 3) based on the progress of
construction. Disbursement will be made after the property has been technically
appraised and all legal documentation has been completed. Disbursement would be
made only after borrower contribution has been invested in full.
LOAN REPAYMENT
The loan would be repaid by way of Equated Monthly Installment (EMI) consisting
of principal and interest within a maximum period of 10 years. Repayment will
commence in the month subsequent to the month in which loan has been disbursed.
In case of construction repayment will commence with effect from the month
subsequent to the month in which last installment of loan is released and till the
time Pre-EMI Interest will be charged.
LINE OF CREDIT FACILITY
We offer corporate bodies a special facility of Line of Credit (LoC) facility which
facilitates Home Ownership among its employees. The scheme facilitates a
company to build its human resource by providing financial assistance to its
employees for owning a house. The company can also save the funds otherwise
required for building accommodation for their staff. Employees when they get an
accommodation oftheir choice would contribute a great deal towards building an
organisation. The loans sanctioned are liberal and disbursements under this facility
faster. Employees are assisted in every ways and need not take time off from work
for complying with various formalities. A LOC facility granted to a company can
be utilised to give loans to their employees for the purchase, construction or
extension of residential units anywhere in India. A company can apply in the
prescribed Corporate Application Form available at our offices along with the
information/documents mentioned in the application form. After a LOC is
sanctioned and the offer accepted, disbursement will be made after completion of
legal and technical formalities.
AMOUNT OF LOC
A company can apply for an LOC under both the schemes based on the anticipated
demand for housing loans from its employees within the next one year. When this
LOC is fully utilized, the Company can apply for another LOC as and when
additional demand for housing loans arises.
RATE OF INTEREST
The company is requested to confirm our current applicable rate of interest. Interest
is calculated on the basis of annual rests. PNBHF reserves the right to vary the rate
of interest at any time in response to changes in money market conditions or if a
levy, tax on interest or any other charge or burden is imposed or levied by any
Government Authority.
LOAN REPAYMENT
The company shall deduct the Equated Monthly Instalments (EMls) from the
monthly salary of each of the employee borrowers and remit a consolidated
cheque/draft of EMls comprising principal and interest. Pending final disbursement
ofloan, interest on the disbursed portion of the loan caned Pre-EMI interest is
payable every month from the date of each disbursement upto the date of
commencement of EM!. The details on security, disbursement, repayment terms
and commencement of repayment are given under respective types of LOC.
TYPES OF LOC
Our company offers LOC under the following two schemes:
LINE OF CREDIT TO
Loan application can be made by a company which has an approved HBA
scheme and is engaged in any business except in real estate promotion
and development.
a) Period
The terms of the LOC would be subject to the weighted average
repayment terms offered by the company under its housing loan scheme
for employees covered under this facility subject to a maximum term of
15 years.
b) Security
The main security is mortgage of the dwelling units financed. Our
company can also ask for a bank guarantee and/ or any other security as
may be mutually acceptable. The title deeds may be held either by
PNBHF or by the borrower company on behalf of PNBHF.
c) Disbursement
Disbursement will be made to the company on the basis of a statement indicating
periodic disbursements of housing loans made.
d) Repayment
A company availing of an LOC would start paying Equated Monthly Insta1ments
in the month following the month in which final disbursement of the LOC is made
to the company. Pending final disbursement, the company is required to pay
interest on the disbursed portion of loan, called Pre-EMI interest and is payable
every month from the date of each disbursement up to the date of commencement
of EMI. In the event of an employee's superannuation, resignation, discharge from
services or death, the amount of the housing loan outstanding in his account shall
immediately be repaid by the company to PNBHF.
(a) Period
The loans availed under this scheme will be repaid in over a maximum period of
20 years or up to the age of retirement of the employees, \whichever is earlier.
(b) Security
The LOC will be secured by mortgage of the dwelling units financed. The
mortgage will be created by the deposit of the title deeds. The title deeds will be
held by PNBHF. The repayment of the loan will also be guaranteed by the
company. The Corporate Body will therefore have a contingent liability to the
extent of the guarantee provided. The loan agreement shall be executed by the
employee borrower and countersigned by the employer guaranteeing repayment.
PNBHF might ask the employer company to provide any other security and
execute any other documents as required in this behalf.
(c) Disbursements
Disbursements to individuals under this facility will be made on the basis of
the recommendation made by the company.
(d) Repayment
The employer shall deduct loan installments from the employees salary and
remit to PNBHF on a monthly basis. EMIs for individual employees would
commence from the month following the month in which the loan is fully
disbursed. Pending final disbursement, the individual is required to pay interest
on the disbursed portion of the loan called Pre-EMI interest which is payable
every month from the date of each disbursement up to date of commencement of
EMI.
RESEARCH
METHODOLOGY
INTRODUCTION
The procedure adopted for conducting the research requires a lot of attention as it
has direct bearing on accuracy, reliability and adequacy of results obtained. It is
due to this reason that research methodology, which we used at the time of
conducting the research, needs to be elaborated upon. Research Methodology is a
way to systematically study & solve the research problems. If a researcher wants to
claim his study as a good study, he must clearly state the methodology adopted in
conducting the research so that it may be judged by the reader whether the
methodology of work done is sound or not.
The research method here includes:-
1. Meaning of research
2. Research problem
3. Research design
4. Sampling design
5. Data coIlection method
6. Data analysis and interpretation
7. Recommendations
Meaning of Research
Research is defined as "a scientific & systematic search for pertinent information
on a specific topic. Research is an art of scientific investigation. Research is a
systematized effort to gain new knowledge. It is a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.
Research is an academic activity and this term should be used in a technical sense.
Research corn prices defining and redefining problems, formulating hypothesis or
suggested solutions; making deductions and reaching conclusions to determine
whether they fit the formulating hypothesis. Research is thus, an original
contribution to the existing stock of knowledge making for this advancement. The
search for knowledge through objective and systematic method of finding solution
to a problem is research.
Research Problem
The first step while conducting research is careful definition of research problem.
Research design
A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research design is the conceptual structure within which
research is conducted. It constitutes the blue print for the collection measurement
and analysis of data. Research design includes an outline of what the researcher
will do from writing the hypothesis and its operational implications to the final
analysis of data.
A research design is a framework for the study and used as a guide in collecting
and analyzing the data. It is a strategy specifying which approach will be used for
gathering and analyzing the data. It also includes the time and cost budget since
most studies are done under these two constraints.
• Exploratory research
• Descriptive
• Diagnostic research
• Experimental research
Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent
population (i.e. the entire universe) various factors such as time available, cost,
purpose of study etc make it necessary for the researchers to choose a sample. It
should neither be too small nor too big. It should be manageable.
Data Collection Method
After the sample has been taken the type of information to be sought was decided
upon, the next step is to collect the data. As the data collected is to be the base of
what we plan to find out, the relevant care should be taken that the errors in
methods of collection of data involved are minimized. The factors of availability of
time, cost and human involvement come to effect the reliability of the data
collected. Broadly there are two types of data:
• Primary data
• Secondary data
Secondary data means the statistics not gathered for the immediate study at hand
but for some other data. It is the data collected by some one for purposes other than
solving the problem being investigated. On the other hand primary data are
generated in a study specifically designed to accommodate the data needs of the
problem at hand.
The data collected in the aforesaid manner have been tabulated in condensed form
to draw the meaningful result. The different techniques are adopted to analyze a
data.
All the data and the material is arranged through internal resources and the last part
of the project consist of the conclusions drawn from the report, a brief summary
and recommendations and giving the final touch to the reports by stating a
conclusion.
COMPARATIVE
CUSTOMER
PREFERENCE
ANALYSIS
IN HOME LOAN
SECTOR
This project provided the important data regarding the demand and awareness of
ICICI Banking home loan sector.
SAMPLE SELECTION
The universe of the study as mentioned below in scope of the project is kept to the
people in Delhi city.
The sample size was chosen to be 100.
Sample was chosen based on Convenience method of sampling but all care was
taken to make it more representative by including people of different occupation.
The present study was conducted by the researcher in Delhi covering some main
and popular markets of Delhi because of constraints of time and money study could
not be extended to other cities. As Delhi being a popular and among the good cities
of India is a good market of financial products & also here customers of different
classes like business segment, service segment, and professional segment are in
excess. Since the report aims at finding the potential for financial products at Delhi
itself taking into consideration certain limits and problems, the area was chosen on
the basis of coverage of product no. of respondents.
The market of Delhi mainly comprises of the rural & urban people with population
of around 15 million. The literacy rate is fairly high and there are around 65%
males & 35% females.
Besides Delhi also boasts of a large financial market. It has an upcoming pharmacy
distribution network & lots of Govt. institutions. There is increasing use of Cyber
Cafe Internet & cable connection. The market size of the city is around 2 lacks, a
significant chunk of which is occupied by the upcoming middle classes.
For the purpose of the study the respondents were selected from all corners of
Delhi mainly popular colonies and for gathering information about the trends,
demands & brands available in financial products.
INTERPRETATION
The above Pie chart depicts that 92% of total sample size is aware about the home
loans and only 8% are unaware.
INTERPRETATION
51% of the sample size finds easy to get the home loan while 49% finds it difficult
The ratio is more or less same.
INTERPRETATION
The above graph depicts that maximum percentage of the sample size prefers to go
for home loan.
LOAN RECEIVED
Loan Recieved Percentage
Yes 67
No 33
INTERPRETATION
It has been found from the graph that 67% of the sample size has gone for the
home loan.
BANK PREFERENCE
PREFERENCE OF BANK PERCENTAGE
ICICI 36
PNBHF 18
LICHF 10
HDFC 35
OTHERS 1
INTERPRETATION
The above graph depicts that only 18 % of the sample size has preferred to take
home loan from PNB and maximum percentage of the sample size preferred to take
home loan either from ICICI or HDFC and very few that is only one percent has
the preference of other financial institutes.
INTERPRETATION
The above graph shows that according to the 32 percentage of total sample size,
ICICI provides the optimal/economical interest rate. The next preference is given
to HDFC and PNBHFL has received the third preference for providing the optimal
interest rate. And only 13 percent of the sample preferred LICHF.
SUITABLE EMI
Preference of bank in case of Percentage
suitability of EMI
ICICI 32
PNBHF 24
LICHF 13
HDFC 27
OTHERS 4
INTERPRETATION
The above graph shows that according to the 32 percentage of total sample size,
ICICI provides suitable EMI. The next preference is given to HDFC and PNBHFL
has received the third preference for providing suitable EMI. And only 13 percent
of the sample preferred LICHF.
INTERPRETATION
The above pie chart depicts that maximum number of people has preferred ICICI
bank for long term loans and only 24 percent of sample size has given preference
to PNBHF and only 4% has given preference to other financial institutes.
CUSTOMER FRIENDLINESS
Customer Friendliness Percentage
ICICI 26
PNBHF 18
LICHF 24
HDFC 17
OTHERS 15
INTERPRETATION
The above pie chart shows that maximum number of people finds ICICI more
customer friendly than other banks.
PROMPT SERVICE
INTERPRETATION
INTERPRETATION
The above graph depicts that customer friendly home loan schemes are the main
aspect for the success of PNBHF.
LAGGING AREA
INTERPRETATION
The above Pie chart shows that Non effective Advertisement is the lagging area of
PNBHFL in comparison to other home loan banks.
CONCLUSION
AND
SWOT
ANALYSIS
AND
LIMITATIONS
SWOT ANALYSIS
STRENGTHS
• Brand name of Punjab National Bank (PNB) is established over the years.
• Single window clearance - a single employee provides wide variety of
facilities to the borrower, minimizing the hassle of wastage of time.
• Appraisal techniques are used.
• Specialized software's are big assets.
• There is no penalty for prepayment from borrowers own service.
WEAKNESSES
OPPORTUNITIES
THREATS
There are always present some limitations under which researcher has to work.
Here following are some limitations under researcher had to work:
SAMPLE SIZE
The sample size surveyed was limited over 100 respondents which not may be
fully representative of the universe. A large sample size could not be taken due to
time & cost constraints.
There is wide range of perimeters affecting consumer behavior but only a few
questions relating to those determinants have been endorsed in schedule.
TIME CONSTRAINT
We had limited time for conducting this survey report. In this short period of all
the respondents had to be personally contacted for the purpose of survey & then
their responses had to be analysed . So, some shortfalls may be present.
Limitations & biasness of convenience & judgment sampling used in the present
study to some extent.
MONEY
DEAR RESPONDANT,
THANK YOU
YOURS FAITHFULLY
PRIYANKA GUPTA
YES
NO
YES
NO
YES
NO
I.C.I.C.I
PUNJAB NATIONAL BANK HOUSING FINANCE LIMITED. (PNBHFL)
HDFC
LIFE INSURANCE IN INDIA HOSING FINANCE
OTHERS
ICICI PNBHFL
HDFC
LICHJ
OTHERS
ICICI
PNBHFL
HDFC
LICHF
OTHERS
ICICI
PNBHFL
HDFC
LICHF
OTHERS
ICICI
PNBHFL
HDFC
LICHF
OTHERS
ICICI
PNBHFL
HDFC
LICHF
OTHERS
www.pnbindia.com
www.pnbhfl.com
www.google.com
www.nhb.org.in
www.indiainfoline.com