WLCI INDUSTRY PROJECT PG - FIN

CONVERGENCE OF BANKING SECTOR TO HOUSING FINANCE

Introduction: Home Sweet Home ~ Confucius said the strength of a nation derives from the integrity of the home. Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a home on loan. Home loan means that you buy a house on installments. In simpler terms when you want to own a home and cant afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate. Many banks are providing home loans whether commercial banks or financial institutions to the people who want to own a home. In the last few years, housing loan scenario in India has changed drastically. It has taken a front seat and people are looking forward to owning their own houses. It is no more a dream that required lifetime saving and a difficult decision to make. Today home loan is much easily available and is much cheaper than what was available earlier. Customers can avail the benefit of liberal terms and conditions i.e. low interest rates, less documentation etc. as well as tax benefits if they choose to take a home loan. Today, the demands of the current social status necessitate that varied means are tapped into in order to achieve the ultimate goal - Better Living. While a home loan generally includes finance for Home extension, Home improvement, Home Conversion, Home construction, Bridge loan as well as Land purchase loan; the terms are more commonly applied to finance schemes for purchasing houses. Home loans are a major investment even for the upper middle class, so showing haste is like cutting the same branch on which we are sitting. Certain points which should be taken into consideration before you sign the dotted line are: First things first; make sure you know what you want before you take the next step. Select the location, and then zero-in on 3 to 4 properties. Keep accessibility, facilities, locality as the criteria. Doing a lot of market research always helps. It is better to check your credit history/report before you pass your file for a home loan. Normally 80% of the loan amount is made available by the bank, but a good credit history can stretch it to 85 %.

Project Guidelines: Keeping the above in mind, the students are required to conduct a market research on the Home loan offered by different banks and financial institutions in India and prepare a Project Report considering the following guidelines:

Different Players and their Market Share in the Home Loan market Explain the benefits and USP and disadvantages of each bank and financial institutions. Compare their Floating rates, Fixed rates, etc.

Eligibility, Documents required Income tax benefit for Home loan borrower and Pre-payment penalty levied by banks. Also, explain the scenario if one died and the home loan is still pending.

The Project Report to include: 1. Executive Summary 2. Introduction 3. Indian Housing Finance System 4. Current Market Scenario 5. Competitor Analysis 6. Current Loan schemes in various Banks 7. Refinancing 8. Changes in the Marketing and Distribution of Home Loans 9. Recent shift in focus towards affordable housing 10. Key Findings and Analysis 11. Prospects and Challenges 12. Recommendations & Suggestions 13. Research Methodology 14. Data Collection Tools 15. References 16. Appendix

Topic- Convergence of Banking Sector to Housing Finance