A PROJECT REPORT

ON

Analysis of Housing Finance schemes of HDFC Bank, ICICI Bank, PNB & SBI Bank

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

IN

Dr. C. V. RAMAN UNIVERSITY

KARGI ROAD, KOTA, BILASPUR

SUBMITTED TO, MR. VIVEK BAJPAI H.O.D DEPARTMENT OF COMMERCE & MANAGEMENT

GUIDED BY:

SUBMITTED BY:

MISS. SWATI JAIN MAM LECTURER (M.B.A.)

SMITA JAISWAL ROLL NO. 3950593

DEPARTMENT OF COMMERCE & MANAGEMENT

SESSION 2010-2011

HOD CERTIFICATE
This is to certify that smita jaiswal is a bonafide student of this institution studying in IV semester, MBA program of DR C.V RAMAN UNIVERSITY KARGI ROAD KOTA BILASPR E (C.G) bearing Roll No- 3950593

This is to certify that her project work entitled has Analysis

of Housing Finance schemes of HDFC

Bank, ICICI Bank, PNB & SBI Bank

in partial fulfillment of the award of MBA degree of DR C.V RAMAN

UNIVERSITY under the guidance of Ms Swati Jain is his original work.

This report does not form a part of any other degree/diploma of DR C.V RAMAN UNIVERSITY or any other university.

DATE- 15 .04 .11 PLACE- BILASPUR

H.O.D Mr. VIVEK BAJPAI

GUIDE CERTIFICATE

This is to certify that Ms smita jaiswal bearing Roll No - 3950593, who is the student of IV semester of MBA program from DR C.V RAMAN UNIVERSITY , has undertaken a project title, has Analysis

of Housing Finance schemes of

HDFC Bank, ICICI Bank, PNB & SBI Bank

under my guidance.

This dissertation is the result of his original survey. I certify that, this report has not been submitted to DR C.V RAMAN UNIVERSITY or any other University for the award of any degree/diploma.

DATE- 15. 04. 2011

Project Ms SWATI JAIN

Guide

PLAC-BILASPUR

I SMITA JAISWAL of IV semester of MBA, here declare that project entitled

of Housing Finance schemes of HDFC Bank, ICICI Bank, PNB & SBI Bank

Analysis

submitted in partial fulfillment of the requirement of the degree of Masters Of Business Administration to DR. CV RAMAN UNIVERSITY, India, this is my original work and not submitted for the award of any other degree, diploma or other similarities to any other university.

Place: - BILASPUR Date: -

SMITA JAISWAL (Roll no. 3950593) IV semester MBA

ACKNOWLEDGEMENT
Guidance, help and encouragement are the essential requirements for successful completion of project. I own my gratitude to all those who have helped me in the preparation of this project report. I express my deepest gratitude to my project guide miss. Swati jain mam, for his valuable guidance and help in completion of this project. I feel obliged to all the respondents, friends and other who have shared their valuable time and opinion, for making significant contribution directly or indirectly in the project.

SMITA JAISWAL MBA IV SEMESTER DR. CV RAMAN UNIVERSITY KARGI ROAD KOTA BILASPUR (C.G.)

CONTENT

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A A A A YSIS A I E P E A I S A Y I I S

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A I SI AP Y

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BIB I

TABLE OF GRAPHS
Sl.No List of Tables and Graphs Page No. 1 If you are make or purchase your own home than are you like to take facility of Housing Finance? Which Housing Finance Bank you chose ? Are you aware all terms and conditions of home loans? 4 How do you come to know about the home loan schemes of this bank? 5 Your bank offer which type of services? According to you which of the following banks provides optimal or economical interest rate? Which feature of your scheme satisfied you to take it ? How would you rate the overall quality of your relationship with banks of housing finance considering all of your experiences with them? Would you say it is. 9 On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied How would you rate your level of satisfaction with banks of housing finance in regards to price? 5 55 53 54 52 49

2 3

50 51

10 11

In the case of suitability of EMI, which bank would you prefer? Are you satisfy by the time taken in sanctioning the loan?

5 59

12

And, IN case of long term which bank would you choose?

13

Have you face any difficulty during taking the loan? Are you agree with the after home loan services provided by your bank are best as compare to other bank? On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied, Did you think the processing system is? How likely are to recommend which bank of housing finance to a friend or relative ?

14

15

Which grade you want to give of home loan schemes of your bank?

According to you , which positive aspect is playing more significant role in success of housing finance banks? Any suggestion that you want to give

19

CHAPTER- 1
Page no

INTRODUCTION 1.1.1 INTRODUCTION OF HOUSING FINANCE 1.1.2 INSTITUTIONAL FRAMEWORK 1.1.3 STRUCTURE OF HOUSING FINANCE INDUSTRY 1.1.4 HOME LOAN TYPES

2 3 4

5 6

INTRODUCTION
Housing is one of the best human needs of the society. It is closely linked with the process of overall socio-economic development of a country. India, being a highly populated country, there is a great need and scope for the development of Housing Sector. Unfortunately, for some reasons or the other, the housing sector in India has remained underdeveloped in the past, however, it is hoped that there would be improvement in the near future. Housing is a growing industry. There is substantial gap between demand and supply and is persisting for a very long period. According to an estimate by the National Building Organization, the cumulative shortage of total dwelling houses in the country by the end of 1991 was 31 million. It is further estimated by this organization that the demand for housing will be around 4.5million units, leaving a gap of one million housing units annually. Hence, based upon this estimate, the cumulative shortage of housing may reach to 41million units by the end of this century. Presently, funds required per dwelling shelter are so high that the individuals saving is not adequate to meet the expenditure of house building. As a result, there is great demand for external housing finance. Housing was given due priority only in 1988 when a National Housing Policy was announce. The policy reflected the trust that housing was not merely consumption expenditure but also a productive investment which would provide economic activity in the country. Besides this, the policy also envisaged that an impetus given to housing would stimulate economic development through creation of substantial employment opportunities. Consequently, the institutional mechanism for housing was strengthened by the establishment of National Housing Bank (NHB) by the Reserve Bank of India.

10

1.1.1 INSTITUTIONAL FRAMEWORK

The setting up of the National Housing Bank marked the new era in housing finance as a new fund based financial service in the country. A large number of financial institutional/companies in the public, private and joint sector entered in this field. For example, Life Insurance Corporation of India and General Insurance Corporation came with various schemes for financing the housing units. In 1970, Housing and Urban Development Corporation (HUDCO), a wholly government owned enterprise, was setup with the objective of housing and urban development as well as infrastructure development. After that, in 1977, another Corporation named Housing Development Finance Corporation (HDFC) was set up in private sector. Housing was given due priority only in 1988 when a National Housing Policy was announced. The policy reflected the trust that housing was not merely consumption expenditure but also a productive investment which would provide economic activity in the country. Besides this, the policy also envisaged that an impetus given to housing would stimulate economic development through creation of substantial employment opportunities. Consequently, the institutional mechanism for housing was strengthened by the establishment of National Housing Bank (NHB) by the Reserve Bank of India.

11

1.1.2ST

E OF HOUSING

FINANCE INDUST
Housi i

Formal Sector

Informal Sector

Household savings

Disposal of Existing properties

Borrowings from friends, relatives and money lenders etc.

Government

Banking

Non-Banking

Central Govt.

State Public Commercial Govt. Authorities Banks

Cooperative Banks

Other Banks

HUDCO

Non-Banking Finance Companies (NBFCs)

House Finance Companies (HFCs)

Non-Banking Housing Finance Companies (NBHFCs)

Insurance LIC/GIC

Specialized Institution HDFC

1.1.3HOME LOAN TYPES

Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India. And the most important thing is you should know about each and every term related with Home Loans before applying for a Loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property. You can take different types of home loans like Bridge Loans, Home construction Loans, Home Equity Loans, Home Extension Loans, Home Improvement Loans, Land Purchase Loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs.
y y y y y

y y

Home Purchase Loans : These are the basic forms of home loans used for purchasing of a new home. Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased. Home Construction Loans : These loans are available for the construction of a new home. Home Extension Loans : These loans are given for expanding or extending an existing home. For egg: addition of an extra room etc. Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan. Land Purchase Loans : These loans are available for purchasing land for both construction and investment purposes. Bridge Loans : Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.

13

1.2 INDUSTRY PROFILE

PAGE NO

1.2.1 HOUSING FINANCE IN INDIA 1.2.2 TAX BENEFITS ON HOME LOAN

7-9 10-11

14

HOUSING FINANCE IN INDIA

The Home loan sector in India is the pi-vital role player in the growth of the real estate scenario in India. With tax incentives given to the housing finance sector in the annual budget of 2001, transactions related to buying and selling of residential properties increased considerably and was much higher as compared to previous years. Since the new class of buyers are relatively younger set of customers who are more aware about legal documentation and approvals, buyers are now more 'end-users' rather than investors; the property market in India undergoes transformation to align itself with global standards with an increased emphasis on quality & cost control and documentation methods. In the current economy of India, the real estate sector has the maximum propensity to generate income and demand for materials, equipment and services. It can be said that housing finance companies were formed for co-existing with buyer's requirements of housing loans for investing in properties. Home loans are made available by financial institutions to both Indian and NRI customers at floating and fixed rate of interest and also at attractive EMI options.
y y y y

For construction or buying a new home For home repairs and renovations For purchase of plots Against mortgage of property No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail of the tax benefits. Besides home loans, Commercial property loans are also available and different financial institutions in India provide commercial loans at different rates and different upper limits. Real estate loans are available to builders, promoters and real estate developers. The experience and financial standing of the builders is taken into account before the loan is granted which is to be returned with the minimum installments. Today, the amount of money that a city dweller spends on rent is roughly the same, or only slightly less than the amount he pays as an EMI on a housing loan. Earlier the home loan sector in India was solely dependent on nationalized and public sector banks, but the entry of public sector banks into the housing finance business marked the beginning of the first round of interest rate cuts. And this reduction in interest rates has enhanced the borrowing power of customers. Moreover, HFCs are offering incentives to attract investors like

y y y y

Some companies sanction the housing loan without requiring you to identify property as a pre-requisite for eligibility Free accident insurance & property insurance Waiving of pre-payment penalty Waiving of processing fee
15

There are a few documents which the finance companies require for setting up Salaried Employee The latest salary slip showing statutory deductions Form 16 (showing tax deducted at source by employer) Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license Self-employed Computation of income for the previous two years, certified by a Chartered Accountant Profit & Loss Account and Balance Sheet for the previous two years, certified by a Chartered Accountant Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license)

Proof of residence (phone Proof of residence (phone bill/electricity bill/ration card). bill/electricity bill/ration card).

CRITERIA FOR ELIGIBILITY OF HOME LOANS. The realty boom in India has given a new dimension to the finance sector in India both in Home Loans and Home Insurance segments. This has not only given a competitive edge to the finance companies to provide attractive options to customers but has also contributed to the increased investments in the real estate sector. This has resulted in 13 new institutions foraying into the housing finance business in the last three years.

Major Home Loan Providers Banks & Public Sector Housing Finance Companies State Bank of India, Corporation Bank, Punjab National Bank, Central Bank, Dena Bank, Allahabad Bank, Bank of Maharashtra, Bank of Baroda Housing Finance, Can Fin Homes, GIC Housing Finance, LIC Housing Finance, PNB Housing Finance, SBI Home Finance, Centbank Home Finance, HUDCO, LIC, etc. HDFC, ICICI Ltd, Citibank, HSBC, StandardChartered- Grindlays, IDBI Bank, etc

Financial Institutions

SWOT ANALYSIS
STRWNGTHS
1) 1) An active mainstream sector . 2) 2) Effective regulatory framework. 3) 3) Extensive network of regional bank microfinance institution, cooperatives credit unions and rural bank.

WEAKNESSES
1) Interest rate war persistent 2) Dilution in due diligence on part of leaders is a often seen. 3) Lack of uniformity of norms. 4) Increase in default rates.

OPPORTUNITIES
1) 1) Increasing urbanization. 2) 2) Housing microfinance has potential. 3) 3) Tax rebates on house loan. 4) 4) Falling interest rates.

THREATS
1) Lower transaction levels in realty sector. 2) High switching costs of customers. 3) Higher cost of home ownership is mainly depending the demand at other end.

TAX BENEFITS ON HOME LOANS

As the Indian real estate market makes an upward swing, and investors opt for housing finance or home loans, tax benefits obtained from them is a lucrative option. Customers availing of Home Loans can claim a certain portion of the interest and principal that they pay towards the loan installments for reducing tax liability. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Moreover, an added tax benefits under Sec 80 C on repayment of principal amount up to Rs. 1,00,000 p.a. can be availed that can further reduce your tax liability by about Rs. 30,000 p.a. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. These deductions are available to assesses, who have taken a loan to either buy or build a house, under Section 24(b). Interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are satisfied:
y y y y

Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property. The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed. The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house A loan for refinance of the principle amount outstanding under an earlier loan taken for such acquisition or construction. If the conditions stated above are not fulfilled, then the interest on borrowed capital is deductible up to Rs 30,000 though the following conditions have to be satisfied:

y y y

Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property. Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property. If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed. In addition to the above, principal repayment of the loan/capital borrowed is eligible for a deduction of up to Rs 100,000 under Section 80C from assessment year 2006-07.

Terms and conditions for availing Tax benefits on Home Loans

1. Tax deductions can be claimed on housing loan interest payments, subject to an upper limit of Rs 150,000 for a financial year. Interest on the fresh loan can be claimed as a deduction, subject o the stated upper limit. 2. An additional loan for extension/addition to the same house and the person's deductions on the existing loan are less than Rs 150,000; he can claim further benefits from the additional loan taken, subject to the upper limit of Rs 150,000 for a financial year.
1

3. Tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only when the payment is made. If a person fails to make EMI payments, he cannot claim tax benefits for the same. 4. According to the Income Tax Act, only the person who has taken the loan can claim tax rebates. 5. The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs 150,000. 6. A husband and wife, both of whom are tax-payers with independent income sources, get tax deduction benefits, with respect to the same housing loan; to the extent of the amount of loan taken in their own respective name. 7. If a person buys a house and sells it within the same year/after 3 years, and if any profit is made, then a capital gains tax liability arises on the same for which the individual is liable to pay short-term capital gains tax since the sale took place in the same year. But, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen. 8. If it is proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits, then tax benefits will not be allowed and benefits, previously claimed, will be clubbed to the income and taxed accordingly. 9. Tax benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans. This means that if you have already availed of one loan to refinance the original loan and want to no avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible. This is because the Section 24 (1) only talks of the second loan and not of subsequent loans. Even if you take the second loan at a rate of interest higher than the original loan, you will be eligible for a tax rebate on the second loan.

19

CHAPTER-2
PAGE NO.

RESEARCH DESIGN
2.1 PROBLEM STATEMENT 2.2 OBJECTIVE 2.3 SCOPE OF STUDY 13 13 13

20

RESEARCH DESIGN
The formidable problem that follows the task of defining the research problem is the preparation of the research project popularly known as the research design.

y PROBLEM STATEMENT-

The main purpose of doing this project is helps to choose the right home loan schemes for purchase house. Various public and private institutions have entered in this field. These institutions have initiated various house financing schemes to cater the diversified needs of this sector. So that I am analysis of Housing Finance schemes of HDFC Bank, ICICI Bank, PNB & SBI Bank.

y OBJECTIVE
o o o o o o o

To study how to choose the right housing finance bank. To study how do get loan for construction of residential houses. To discuss housing credit more affordable. To know the some of housing finance schemes. To discuss some tip for buying house. To study of terms and condition of home loan. To find out that how people to construction of houses by attractive EMI systems.

y SCOPE OF STUDY
This study is analysis of housing finance schemes of HDFC, ICICI, PNB AND SBI banks. It is helpful in analyzing the home loan Schemes service provided to the customer and their comparison. This study was conducted by the researcher in BILASPUR, because of constraints of time and money study could not be extended to other cities. As BILASPUR 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 BILASPUR itself taking into consideration certain limits and problems, the area was chosen on the basis of coverage of product no. of respondents

21

CHAPTER- 3
Page no. 3.1 A COMPNY PROFILE OF FOUR BANKS WHICH PROVIDE HOUSING FINANCE:3.1.1 HOME LOAN OF HDFC BANK SWOT ANALYSIS 3.1.2 HOME LOAN OF PNB BANK 3.1.3 SWOT ANALYSIS 3.1.4 HOME LOAN OF SBI BANK SWOT ANALYSIS 3.1.5 HOME LOAN OF ICICI BANK SWOT ANALYSIS 15-18

19-25 26-28 29-34 35-44

3.2 COMPARE HOUSING LOAN OF DIFFERENT BANKS 45

22

HDFC BANK
HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies. Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.

ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$ 77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine months ended December 31, 2008. The Bank has a network of 1,416 branches and about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide
23

variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

PUNJAB NATIONAL BANK

With over 37 million satisfied customers and over 4589 offices, PNB has continued to retain its leadership position among the nationalized banks. The bank enjoys strong fundamentals, large franchise value and good brand image. Besides being ranked as one of India's top service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart from offering banking products, the bank has also entered the credit card & debit card business; bullion business; insurance business; Gold coins & asset management business, etc. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital, PNB has achieved significant growth in business which at the end of March 2008 amounted to Rs 2,85959 crore. Today, with assets of more than Rs 1,99,000 crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (4589 including 322 extension counters).During the FY 2007-08, with 43% share of low cost deposits, the bank achieved a net profit of Rs 2,049 crore, maintaining its number ONE position amongst its peers. The banks Return on Assets at 1.15% was also the highest. During the FY 2007-08,its ratio of priority sector credit to net bank credit at 44.11% & agriculture credit to net bank credit at 18.94% was also higher than the respective national goals of 40% & 18%. PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its IT strategy follows the Business strategy so as to arrive
24

at Best Fit. The bank has made rapid strides in this direction and achieved 100% branch computerisation. A pioneering effort of the bank in the use of IT is the implementation of Core Banking Solution (CBS) which facilitates any time, any where banking. PNB has implemented CBS in 3503 service outlets at around centers to facilitate "anytime, anywhere" banking to its clients. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc. Towards developing a cost effective alternative channels of delivery, the bank has installed more than 1516 ATMs and entered into ATM sharing arrangement with other banks & IDRBT, making available a pool of additional 21,500 ATMs throughout the country to its customers. Backed by strong domestic performance, the bank is planning to realize its global aspirations. In order to increase its international presence, the bank has already set up representative offices at Almaty (Kazakhstan), Dubai (UAE) & Shanghai (China) ; a branch at Kabul (Afghanistan) and a subsidiary at London (UK) and a branch at Hongkong. Work on assessing potential at other international centers is progressing. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal, with 20 per cent equity participation. With PNBs management, EBL has become one of the leading banks in Nepal. As a tribute to its consistent business growth, improved assets & attractive returns to shareholders in the joint venture, PNB has won Bank of the Year Award in Nepal (2006) by The Banker, a publication of the London based Financial Times. Amongst Top 1000 Banks in the World, The Banker listed PNB at 255th place. Further the leading international Credit Rating index provider, Standard & Poors (2006) listed PNB, amongst the 300 World companies & 7 Indian companies, which are expected to emerge as challengers to the worlds leading blue chip companies. Financial Performance: Punjab National Bank continues to maintain its frontline position in the Indian banking industry. In particular, the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches, operating and net profit in the year 2006-07. The performance highlights of the bank in terms of business and profit are shown below: (Rs Crore) Parameters March05 March06 March07 CAGR (%) Gross Profit 2404, 2917, 3231, 15.91 Net Profit 1410, 1439, 1540, 4.50 Deposits 103167, 119685, 139860, 16.43 Advances 60413, 74627, 96597, 26.45 Business 163580, 194312, 236457, 20.23 Recognition: In recognition of its efforts in various areas, the bank has received various recognitions. National Award for Excellence in lending to SSI and tiny sector for the year 2004-05 and 2005-06 respectively. Golden Peacock National Training Award for three successive years (2004, 2005 & 2006). Golden Peacock Award for Excellence in Corporate Governance for the year
25

2004-05 and 2006-07 by Institut of Di tors (IOD). SKOCH C all nger Award for C ange Management for t e year 2005-06 in recognition of t e banks services towards uplift ment of t e weaker sections of t e society and SKOCH C allenger Award 2006-07 for capacity building for t e Farmers Training College initiative Best IT Team of t e Year (2005-06) by IDRBT. Amity Corporate Excellence Award, 2006-07

SBI BANK
State Bank of India (Hindi: ) (SBI) is t e largest stateowned banking and financial services company in India. The bank traces its ancestry to British India, through the Imp erial Bank of India, to the fou nding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to for m Imp erial Bank of India, which in turn became State Bank of India. The government of India nationali ed the Imp erial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Res erve Bank of India. SBI provides a range of banking produ cts throu gh its vast network of branches in India and overseas, inclu ding products aimed at non-resident Indians(NRIs). The State Bank Group, with over 16,000 branches, has the largest banking branch network in India.Its also considered as the best bank even abroad ,having arou nd 130 bra nches overseas [inclu ding 1 ADB]and one of the largest financial institution in the world . With an asset bas e of $352 billion and $285 billion in deposits, it is a regional banking behemot h. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accou nts for almost one -fifth of the nation's loans.[2] The State Bank of India is the 29th most reputed company in the world according to Forbes.[3] Also SBI is the only bank to get featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.[4] The State Bank of India is the largest of the Big Four of India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main comp etitors.[5]and" GUINNESS BOOK OF WOR D RECORD " that 56 million transactions happening per day all over the world is definitely an achievement

3.1.1 HOME LOAN OF HDFC BANK

Features
y y

y y

Maximum loan-80% of the cost of the property (including the cost of the land) and based on the repayment capacity of the customer. Applicant and Co- Applicant to the loan-Home Loans can be applied for either individually or jointly. Proposed owners of the property, will have to be co-applicants. However, the co-applicants need not be coowners. Maximum Term-20 years subject to your retirement age. Adjustable Rate Home Loan-Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, 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 term of the loan, and vice versa when the interest rate decreases. * Conditions Apply Fixed Rate

Home Loan : Loan Purposes

One can apply for Power Home for the following purposes: Purchase of Flat, row house, bungalow from developers Existing freehold properties Properties in an existing or proposed co-operative housing society or apartment owner's association First Power of Attorney purchases in Delhi for DDA flats allotted before 1992.

   

Home Loan: Eligibility

Salari
A e Income Job E perience Residence Proof 21-60 years Income criteria not provi
ed Job experience not provided Residence proof not provided 25-65 years Income criteria not provided Job experience not provided Residence proof not provided
2

Sel

Home Loan: Loan Amount

Limits on home loan
y

Minimum - Rs 1 lac Maximum - Rs 50 lacs Margin

20% in the case of home loans

y 25% in case of improvement or renovation loans

Home Loan: Documentation

You can download the Application Form and submit alongwith the following documents for an approval of loan.

Salaried Customers Application form with photograph Identity and Residence Proof Latest Salary-slip Form 16

Self Employed Professionals Self Employed Businessman Application form with photograph Application form with photograph

Identity and Residence Proof Identity and Residence Proof Education Qualifications Certificate and Proof of business existence Last 3 years Income Tax returns (self and business) Education Qualifications Certificate and Proof of business existence Business profile Last 3 years Income Tax returns (self and business)

Last 6 months bank statements

Last 3 years Profit /Loss and Balance Sheet Last 3 years Profit /Loss and Balance Sheet Last 6 months bank statements Processing fee cheque Last 6 months bank statements (self and business) Processing fee cheque

Processing fee cheque

2

Home Loan: Interest Rates & Charge

Applicable Rates (Montly Rest Basis) Upto and inclding Rs 30 lacs Rs.30.01 lacs to Rs.75 lacs Over Rs.75 lacs

Fixed rates% Variable rates% 11.50 11.50 11.50 9.75 10.00 10.25

Basis% RPLR RPLR - 5.75 RPLR - 5.50 RPLR - 5.25

The above rates are subject to change without notice.

Home Loan: Terms and Conditions

Repayment
y

Step Up Repayment Facility- Helps young executives take a much bigger loan today based on an increase in their future income, this helps executives buy a bigger home today! Flexible Loan installments Plan- Often customers, parents and their children, wish to purchase properties together. The parent is nearing retirement and their children have just started working. This option helps such customers combine the incomes and take a long term home loan where in the installment reduces upon retirement of the earning parent. Tranche Based EMI- Customers purchasing an under construction property need to pay interest ( on the loan amount drawn based on level of construction) till the property is ready. To help customer save this interest, we have introduced a special facility of Tranche Based EMI. Customers can fix the installments they wish to pay till the time the property is ready for possession. The minimum amount payable is the interest on the loan amount drawn. Anything over and above the interest paid by the customer goes towards Principal repayment. The customer benefits by starting EMI and hence repays the loan faster.

Security Security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. Interim security may be required, if the property is under construction.

29

Disbursement The loan will be disbursed in full or in suitable installments, taking into account the requirement of funds and progress of construction, as assessed by the Bank directly to seller or builder or local development authority or supplier of materials etc. Processing charges or admission fee Processing fee equivalent to 0.5% of the loan amount (applied for) will be collected along with the application form (taxes as applicable). Penalty for early closure - Nil Other Conditions Bank reserves the right to reject any application without assigning reasons thereof The applicant will undertake to inform the Bank as and when there is a change in address or employment The terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion.

Home Loan: Fair Practice Code For Lenders

As directed by the Reserve Bank of India, vide circular DBOD.No.Leg.No. BC.65/ 09.07.005/2006-07 dated March 6, 2007; the Bank has adopted modified Fair Practice Code for lenders as approved by the Board of Directors. The salient features of the same are: i) Applications for Loan In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them. ii) Processing a. The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.

30

b. The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant. c. For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month. iii) Loan Appraisal and Terms and Conditions a. The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer. b. All the terms and conditions and other caveats will be duly communicated by an authorized official of the Bank to the customer in writing. c. The acceptance of the customer will be obtained on the sanction letter with the customer's signature under the caption A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter. d. The sanction letter / loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank. i. ii. Drawings beyond the drawing power / sanctioned limits. Honoring of cheques issued for the purpose other than specifically stipulated in the sanction. iii. iv. Drawings in an account once it is classified as NPA. No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower. v. Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits. iv) Disbursement of loans including changes in terms & conditions

31

a. The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement. b. Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes. c. Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower. v) Post disbursement supervision a. The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection. b. The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance / accelerate the payment / accelerate the performance under the loan agreement. Or seek additional securities. c. The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid / settled v) Others a. The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts, and scrutiny of QIS statements. b. In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest. c. While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending.
32

d. In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power. e. In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request. vi) Grievance Redresser Though the sanction of the loans will be at the sole discretion of the Bank, borrowers will have an opportunity to appeal against the decision of the Bank's functionaries. Any such grievance received from the borrower will be heard and disposed of by the next higher authority. For this purpose the following review structure is available to the borrower.

SWOT ANALYSIS OF HDFC BANK

Strengths : 1. 2. 3. 4. 5. Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image. Products have required accreditation. High degree of customer satisfaction. Weakness : 1. 2. 3. 4. 5. Some gaps in range for certain sectors. Customer service staff need training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff

Opportunities : 1. 2. 3. 4. 5. Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis.

Threats : 1. 2. 3. 4. 5. Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors. Lack of infrastructure in rural areas could constrain investment

33

3.1.2 HOME LOAN FOR PNB BANK

PNB reaches out to one with fast, friendly and most convenient home loans for: Construction or purchase of house/ flat. Purchase of house/ flat on First Power of Attorney basis from the original allotted. Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat Special Feature- To cover the loan outstanding, life Insurance cover is also available on payment of one time premium which can also be financed by the Bank.

Extent of loan
Individual For construction/purchase of house/ flat:- 75% of the cost of construction of house or purchase of house/ flat . For carrying out repairs/ renovation/ additions/ alterations: - 75% of the estimated cost subject to maximum of Rs. 20lacs Loan upto Rs.20 Lacs for purchase of Land/Plot. Loan is available maximum upto Rs.2 Lacs for furnishing.

Security
y y

Mortgage of property for which finance is being given. In case of purchase of house/ flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/ society, borrower and the Bank. In case of purchase of house/ flat on first power of attorney, additional security equal to 125% of the loan amount by way of mortgage of some other property or pledge of bank's FDR/ LIC policy/ Govt. Securities, NSCs, KVPs, IVPs, / PSU Bonds etc.

34

RATE OF INTEREST
INTEREST RATES ON ADVANCES UNDER RETAIL LENDING SCHEMES st (effective from 1 January 2009 BPLR 12.00%) I. a Housing Finance Fixed Option for loans Floating Option for loans
to Individuals including NRIs / Flexible Housing scheme / existing Fin Basket a/cs For repayment period i) Upto 5 years ii) Above 5 & upto 10 years iii) Above 10 & upto 20 years iv) Above 20 yrs & upto
25 yrs.

Upto 20 lac

Above lac

20

Upto 20 lac 9.00 9.50 9.75 10.00

9.25 10.25 10.75 11.25

10.25 10.50 11.00 11.50

Above lac 10.00 10.00 10.25 10.50

20

I. b. FLEXIBLE HOUSING (OVERDRAFT COMPONENT) I. c. OVERDRFT FACILITY TO EXISTING HOUSING LOANS BORROWERS FOR PERSONAL NEEDS

BPLR i.e. 12%

BPLR i.e. 12%

The aforesaid revised rates of interest under floating option will also be applicable in: Existing as well as new accounts in Flexi-Housing scheme (Term Loan component) and In existing accounts in Fin Basket scheme which stands as closed. The fixed rate of interest option of Housing Loans, disbursed on or after 01.08.2006, will be subject to reset clause of five years on all repayment tenors except tenor upto 05 year.(RBD Advances Circular 25 dated 2.8.2006). Extra 0.50% Rate of Interest on card rate to be charged in respect of persons already having one or more houses and availing Housing Loan for subsequent house(s). This extra Rate will continue to be charged in all cases where either borrower or co-borrower is having one or more houses in his/her name.

35

Documentation Charges
Rs.1,350/- + Service Tax & Education Cass.

Repayment
Loan is to be repaid in equated monthly installments within a period of 25 years or before the borrower attains the age of 65 years.

Disbursement
For outright purchase of house/ flat, the loan amount will be paid in lumpsum to the vendor. For house/ flat under construction, the loan amount will be disbursed in stages as per progress of construction/ demand by selling agency

SWOT ANALYSIS OF PNB

STRENGTH Wide network Large number of customers Fast adaptability to technology Brand image WEAKNESS Casual behaviour Corruption and red tapism Slow decision making due to large hierarchy High gross NPA

OPPORTUNITIES Home to home banking services Diversification towards other fields Globalization

THREATS Stiff competition from SBI and other private players Sales promotion is very poor other bank.

3

3. Home Loan of SBI Bank

The most preferred home loan provider" voted in awaaz consumer awards along with the most preferred bank award in a survey conducted by TV 18 in association with ac nielsen-org marg in 21 cities across india. SBI home loans now offers interest rates concessions on green homes in accordance with SBI's commitment to Environment protection. SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. Best Practices followed in SBI mentioned below will tell you why it makes sense to do business with State Bank of India.

SBI Home Loans Advantage

y y y y y

Package of exclusive benefits. Low interest rates. Further, we charge interest on a daily reducing balance!! Low processing charges. No hidden costs or administrative charges. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan.
y

Over 13,700 branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence.

One who is eligible if:

Minimum age: 18 years as on the date of sanction Maximum age: 70 years. i.e. the age by which the loan should be fully repaid, subject to availability of sufficient, regular and continuous source of income for servicing the loan repayment.

3

Loan Amount
Actual loan amount will be determined taking into consideration such factors as applicants income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc. To enhance loan eligibility you have option to add:

1)

Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with SBI. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. Depreciation, subject to some conditions. Regular income from all sources.

2)

3) 4)

Margin

Loan Amount

Margin (Min.)

Maximum (Max.) 90% 80%

LTV

Ratio

Upto Rs. 20 Lacs Above Rs. 20 Lacs.

10% 20%

3

Rate of Interest
a) SBI Easy Home Loan
(Upto Rs.30 Lakh) (Base Rate: 8.25% p.a.) Name SBI Easy Home Loan Facility Term Loan or OD as in SBI MaxGain. (OD facility will be Type available for loans above Rs.5 Lacs.) Loan Upto (and including) Rs.30 Lacs amount Interest Card Rate applicable for the tenor of the loan 1.50% above Rate Base Rate, Present effective rate being 9.75% p.a. Ist Year 1% discount over Card Rate, present effective rate being 8.75% p.a. 2nd and 3rd 0.25% discount over Card Rate, present effective rate being year 9.50% p.a. 4th year Card Rate onwards No Fixed Interest Rate option.

b) SBI Advantage Home Loan

(Above Rs.30 Lacs and upto Rs.75 Lacs) Name SBI Advantage Home Loan (Above Rs.30 Lacs and upto Rs.75 Lacs) Facility Type Loan amount Interest Rate Ist Year 2nd and 3rd year 4th year onwards Term Loan or OD as in SBI MaxGain. For Home Loans above Rs 30 lacs and upto Rs. 75.00 Lacs Card Rate applicable for the tenor of the loan 1.75% above Base Rate, Present effective rate being 10.00% p.a. 1.25% discount over Card Rate, present effective rate being 8.75% p.a. 0.50% discount over Card Rate, present effective rate being at 9.50% p.a. Card Rate (Base Rate: 8.25% p.a.)

No Fixed Interest Rate option.

39

c) SBI Premium Home Loan

(Above Rs.75 Lack) (Base Rate: 8.25% p.a.) Name SBI Premim Home Loan Above Rs.75 Lacs Facility Term Loan or OD as in SBI MaxGain upto Rs.1 Crore. Type Loan For Home Loans above Rs 75.00 lacs amount Interest Card Rate applicable over t e tenor of te loan is 1.75% over rate te Base Rate, present effective rate being 10.00% p.a. Concessions including discretionary concessions will be available over te tenor of te loan No Fixed Interest Rate option.

Repayment
Repayment period: Maximum 25 years (or) Up to the age of 70 years (the age by which the loan should be fully repaid) of the borrower, whichever is early. Moratorium period (Repayment holiday ): The moratorium period is included within the maximum repayment period.

Security
Equitable property. mortgage of the

Process fees
Loan Amount Upto Rs.5 Lac Above Rs.5 Lac and upto Rs.10 Lac Above Rs.10 Lac and upto Rs.20 Lac Above Rs.20 Lac and upto Rs.50 Lac Above Rs.50 Lac and upto Rs.1 Cr Above Rs.1 Cr and upto Rs.5 Cr Above Rs.5 Cr Processing Fee Rs.1000/Rs.2000/Rs.5000/Rs.7,000/Rs.8,000/Rs.10,000/Rs.20,000/40

NOTE
1) 75 % of the processing fee may be refunded in the following cases: (a) Rejection of loan application on account of unsatisfactory pre-sanction survey report. (b) Rejection of loan application on account of unsatisfactory legal/valuation reports. In cases where applications are sanctioned or rejected after complete loan processing, fee will not be refunded. 2) Actual charges for the following will be payable by the customer in addition to the processing fee: a) Pre-sanction (i) Advocate's fee for property search and the title investigation report. (ii) Valuer's fee for valuation report. b) Post-sanction (i) Stamp duty payable for Loan agreement & mortgage. (ii) Property insurance premium.

41

SWOT ANALYSIS OF SBI

Strengths
y y y y y

Weaknesses
y y y

Brand name Market Leader Wide Distribution Network Government Owned Diversified Portfolio

Minor hindrances Hierarchical management Lags modernization

Opportunities
y

Threats
y y

Merger of associate banks with SBI

Advent of MNC banks Private banks venturing into the rural

Opportunities for public sector banks

y

Employee Strike

y y

New Branches and ATM's Expansion on Foregin soil

42

4. HOME LOAN OF ICICI BANK

ICICI Bank Home loans provide not just the most competitive interest rates & best level of service, but also products designed to cater to the specific needs of consumer. New products / new features in existing products are introduced based on customer feedback. Choose the ICICI Bank Home Loan that suits ones needs.

Home Loans
Home Loans are provided to individuals to own a residential property. ICICI Bank offers easy home loans for
y y y y

First Purchase in ready construction Under construction property Purchase in re-sale Self construction - extension of existing living space The following are the features of ICICI Bank Home Loans

y y y y y

Home loan amount can be chosen to suit specific needs. One can avail of a loan up to 80% of Cost Of Property. Conveniently pay off the loan over a period of upto 25 years. It can be availed at the Floating rate of Interest or at the Fixed rate of Interest or at the combination of both Fixed & Floating rates. Faster repayment as principal repayment in on monthly rest.

Eligibility Norms for Home Loans.

Home Loans can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian who are Salaried. For resident Indians the following are the eligibility norms
y y

One must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. One must be employed or selfemployed with a regular source of income.

43

Land Loans
Land loans give an opportunity for individual customer to purchase a residential plot of land to do self- construction. Thus, customer can invest now in a plot of land & build in future. The Land loan can be financed only within municipal limits of HUB locations or in case of direct allotment outside municipal limits by DA. Land Loan can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian.

Home Improvement Loans

Home Improvement Loan is offered to facilitate improvement of a self-owned dwelling unit to existing or new customer. HIL considers a range of facilities internal or external to the structure without increase in the living pace. Thus, a customer can add or improve facilities to his dwelling unit with a loan at Home Equity Loan rate of interest Home Improvement Loan can be availed by Resident Indian whether Salaried or SelfEmployed.

Office Premises Loans

Office Premises Loan can be used for purchase, construction, extension & also for improvement (at the time of acquisition of office premises. It creates an opportunity to extend loans to self-employed individuals to house their profession or business giving a permanent address for generating steady flow of income. The product can also include the estimate of renovation at the time of purchase of the property. This loan is especially meant for self-employed professionals like Doctors, Architects etc. Home Loans can be availed by Resident Indian who are Self-Employed and also by Non- Resident Indian who are Salaried.

EMI Under Construction

EMI Under Construction is offered for structuring a home loan to enable individuals to commence his EMI in a partly disbursed under construction project. Commencement of EMI ensures re-payment towards principal amount leading to savings in interest and faster repayment of the loan. The EMI paid is as per the sanctioned loan amount and remains constant during the tenure of the loan. The tenure of the loan keeps moving up with additional amount being disbursed. EMI under Construction can be availed by Resident Indian whether Salaried or SelfEmployed and also by Non- Resident Indian.

44

Balance Transfer
Balance Transfer is a facility offering the customer a choice to transfer the outstanding balance of the loan availed for better terms & conditions. Balance Transfer helps to move from higher rate of interest to lower rate of interest or increase in loan component as Top up. BT is possible only from loans taken from HFCs approved by NHB for refinance, Banks or employer Loans taken from Central or State Government. Balance Transfer can be availed by Resident Indian whether Salaried or SelfEmployed.

Top Up Loan
Top up Loan can be availed time and again for various personal requirement based on value of the property. It offers the customer additional funds against the security of the same property. To avail Top Up loan, the vintage of atleast six months is required for the loan availed. The basic eligibility emerges with good repayment track record. The end use letter is essential to be collected. The End use of Top Up Loans can be
y y y y y y

Furnishing of home Consumer durable Childs education Daughters marriage Family holiday Vehicle Any other personal requirement of the borrower provided it is not speculative or illegal in nature This product is applicable to fully disbursed cases with no post- disbursement document pending. This product is priced more than base home loan rates but lower than any personal loan rates. Top Up Loan can be availed by Resident Indian whether Salaried or Self-Employed.

Loan on Phone
Loan On Phone is a pre-sanctioned loan. Its is based on the existing relationship of the customer with ICICI Bank. The biggest advantage is that the customer can get the loan with minimum documentation. Good banking transactions and repayment records becomes a strength for availing loans in future. Loan on Phone can be availed by Resident Indian whether Salaried or Self-Employed

45

Home Equity Loan

Loan against property gives the owner of residential or commercial premises to leverage on the value of the property. It offers the ability to unlock funds gives the advantage of looking at the asset as a source of security bringing liquidity and retaining ownership. In case of HEL the property should be self occupied by one of income considered applicants. The security of the property ensures competitive rate of interest. The interest component of the EMI paid by SEP / SENP can be booked as expenses in their P & L Home Equity Loans are provided for many personal requirements of the customer viz.
y y y y y y

Marriage Child Education Business Purchase of Property (Where mortgage is not possible) Improvement of Property Medical Treatment Home Equity Loans can be availed by Resident Indian who are Self-Employed and also by Non- Resident Indian who are Salaried.

Property Overdraft
The overdraft facility from ICICI Bank Home Loans allows you to borrow money against your self-occupied property. The overdraft facility comes with a multi-city cheque book and phone banking facility. The customer is charged interest only for the amount that he withdraws from the account. Whenever he deposits funds into the account, they go towards reducing the outstanding balance in the account. It offers the following benefits:y y y y y y y

Generating capital against property (R) or ( C) for business or personal use Convenience of Pre - Sanctioned limit and draw as you need Pay interest on the amount drawn and for days utilized Convenience of depositing & withdrawing like any Current Account Benefit of Cheque Book & Phone banking Fast Processing and door-step service Multi-city cheque book and phone banking facility Property Overdraft can be availed by Resident Indian who are Self-Employed

Lease Rental Discounting

Lease Rental Discounting helps to raise funds against the future expected rentals of self owned commercial property. The property should be occupied by the Lessee.
4

Similar to Home Equity Loans, LRD can be provided for any personal requirements of the customer viz.
y y y y y y

Marriage Child Education Business Purchase of Property (Where mortgage is not possible) Improvement of Property Medical Treatment Lease Rental Discounting can be availed by Resident Indian whether Salaried or SelfEmployed

Factors Affecting ones Loan Amount

With ICICI Bank Home Loans, you can get a home loan suited to your needs. The home loan amount depends on your repayment capability and is restricted to a maximum of 80% of the cost of the property or the cost of construction as applicable. A number of factors are taken into account when assessing your repayment capacity. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history. However, there are ways by which you can enhance your eligibility. If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. In case of any co-owners they must necessarily be co-applicants. The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each loan Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included

Documents required for Home Loan Sanction

ICICI Bank Home Loans, the leading Home Loans Provider, offers attractive interest rates and unbeatable benefits to ensure that you get the best deal without any hassles. Keeping your convenience in consideration, we ask one for minimal mandatory documents for the sanctioning of one home loan.At ICICI Bank Home Loans we require the following documents to sanction one home loan:

4

Sanction Documents Duly Completed Application Form Photograph Fee Cheque Photo Identity Proof Age Proof Signature Verification Proof Residence Address Proof

Document specific for Self Employed Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for business and personal of partners/directors) Bank Statement for last 6 month from operating account Repayment Track record of existing loans / Loan closure letter Board Resolution in case of a company Proof of existence Office Address Proof Photo Identity Proof, Residence Address Proof, Signature Verification is required to be provided for all the main partners / directors.

These are the documents required for sanctioning a loan. You may be asked to submit further legal documents if required by ICICI Bank or its approved lawyers. Do retain photocopies of all documents being submitted by you.

4

Disbursement of your ICICI Bank Home Loan

At ICICI Bank Home Loans, we disburse the loan amount after you identify and select the property or home that you are purchasing and submit the requisite legal documents. While you may be under the impression that the list of documents asked for is rather extensive, please note that it is for your own good. Each and every single document asked for will be verified and checked to ensure your safety. This may take some time but we want to ensure a clear title and will complete all the legal and technical verifications to ensure that you have full rights to your home. Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents. The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed. On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by ICICI Bank.

Disbursement Documents

Property documents (as per P&D for respective states and as

asked by empanelled lawyers for individual cases) Facility Agreement Disbursal Request Form Cheque Submission Form for Pre EMI and EMI cheques ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for EMI / Pre EMI Personal Guarantors Documents (PG Form, Photograph, Identity Proof, Address Proof, Signature Verification and Income documents, if applicable)

Services & Charges

ICICI Home Finance ensures that you get the best Home Loans in terms of interest rates and other facilities. You can choose from Adjustable, Fixed or Floating Rate Home Loan.

49

Charges Loan Processing Charges

Home Loans Charges / Renewa l 0.5% to 1%

2% on the principal Prepayment Charges outstanding on full prepayment Charges for late payment 2% per month Charges for changing from fixed to floating 1.75% on principal rates of interest outstanding Charges for changing from floating to fixed 1.75% on principal rates of interest outstanding Chequ e Swap Charges Rs. 500/Docu ment Retrieval Charges Rs. 500/Chequ e bou nce charges Rs. 200/Note : Service Tax and other taxes, levies, etc. applicable as per prevailing rate will be charged over and above these charges .

Repayment Terms of your Home Loan

In our endeavor to make taking a home loan an easy process for you, we at ICICI Bank Home Loans address all your queries about the repayment ter ms of Home Loans with resp ect to tenure, home loan EMIs, methods of home loans EMI payments and pre-EMI interest. What i the repayment tenure? How i the loan repai ? What i an E I? When does the repayment start? How is the E I paid? What i a PDC bounces? What is pre-E I interest? When do I pay PE Is? What is the repayment tenure? Repayment tenure is the tenure for the nu mber of year for which the loan gets sanctioned. We offer you a wide range of options for the tenur e of the loan. You can take a home loan for up to 25 years provided you do not reach the age of 65 years or retire within that period How is the loan repaid? All loan repayments are done via equated monthly installments (EMI).


What is an EMI? An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment When does the repayment start? EMI payments start from the month following the month in which the full disbursement has been made How is the EMI paid? The EMI is to be paid every month through post-dated cheques (PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36 PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, we provide the flexibility of dating the cheques for the 10th of the month. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit. What if a PDC bounces? In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 - 7 working days. What is pre-EMI interest? In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

When do I pay PEMIs? The first PEMI is payable by cheque by the end of the month in which the disbursement is made and each subsequent PEMI at the end of every month till the commencement of EMI. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit.

51

SWOT ANALYSIS OF ICICI BANK

Strengths
y y y y

Weakness
y y y

Online services Advanced infrastructure Friendly staff 12 hrs. banking services

High bank services charges Less credit period High interest rates

Opportunities
y y y

Threats
y y y y

Increase in percentage of returns on increase Associate with social cause Tax rebates on house loan

Very high competition Net services Decentralized management No proper facilities to uneducated customer

52

COMPARE HOUSING LOAN OF DIFFERENT BANKS

Loan Provider Rates of Interest 9.5% 9.5% Loan Amou nt 100000 2000000 100000 2000000 10000 1500000 Loan Duration 1 - 5 Yrs 1 - 5 Yrs

9.75%

1 - 5 Yrs

9.75%

100000 2000000 100000 5000000 100000 20000000 100000 10000000 100000 10000000 100000 2000000 100000 10000000 200000 10000000 100000 2000000 100000 10000000 100000 10000000

1 - 5 Yrs

10.5% 10.5% 10.5% 10.5% 11.0% 11.0% 11.25% 11.5% 11.5% 12.0%

1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs 1 - 5 Yrs



CHAPTER -4
Page no.

4.1 RESEARCH METHODOLOGY 4.1.1 SAMPLING PLAN 4.1.2 SAMPLING SIZE 4.1.3 SAMPLING TOOL 4.1.4 SOURCES OF DATA 4.2 LIMITATIONS

47

48

54

RESEARCH METHODOLOGY
The research will be exploratory in nature. A population of peoples who take home loan from these banks will be considered for this study. I will try to explore about the home loans which would make a difference in the behavior of the consumer. Effort will be made to throw light on most of the factors which have either indirect or direct effect on the behavior of the consumer.

Sampling plan Sampling plan is necessary because it is almost impossible to examine the entire population in limited time . So that I am choosing simple random sampling plan for my project.

Sampling size A sample size is 50 , from the central part of BILASPUR. Because it is not possible to cover the whole cities in available time period. So that it is necessary to take the sample size, in 50 simple random respondents .

Sources of data Primary DataThrough questionnaire Secondary Data- Internet, magazine, news papers etc

Sampling tool Data will be collected using questionnaire, which will influence the finance decision of the simple random person.

55

LIMITATION
Although best of the efforts were made to conduct a prefect survey but still it faces certain limitation. Following were certain limitation of this project. 1. Some of the respondents did not aware the terms and condition of home loan schemes. 2. Some of the respondents did not answer all the questions. This could hamper the final results to a certain extent. 3. We had limited time for conducting this survey report. 4. The study confines itself to the respondents of BILASPUR only. Hence findings would not be relevant to other cities. 5. People mind set about the survey was an obstacle in acquiring complete information & positive interaction. 6. Respondents were very busy in their schedule. So it was very time consuming for them to answer all the questions properly.

5

CHAPTER -7
Page no

7.1 DATA ANALYSIS AND INTERPRITATION 50-68

5

1) If you are make or purchase your own home than are you like to take facility of Housing Finance?
! ! . ! " % #ESP $E
YES PE#&E 7 )%

% '

A E

(7 *(  74%

! %!% ,
A

+6% *--%

0.8

0/ 7
0.6 0.5

0/ 4 0/3
0.2 0 .1 0 YES NO 26%

OPTION PERCENTAGE

The above colu mn chart depicts that 74% person are taking home loan and only 26% are not taking home loan.

2) If yes, Which Housing Finance Bank you chose? NO. of respondent 9 14 6 7 1 37 % 24% 38% 16% 19% 3% 100%

ICICI HDFC PNB SBI OTHER TOTAL

38%

40% 33% 30% 22% 20% 12% 10% 2% 0%

24%
14%

19%

ICICI

HDFC
%

PNB

SBI

Total nu mber of respondent was 37 24% person is chos e ICICI bank 38% people are chose HDFC bank 16% person is chos e PNB bank And, 19% people are chose SBI bank

01

3) Are you aware all ter ms and conditions of home loans? NO. 24 13 37 % 65% 35% 100%

YES NO TOTAL

:;% 90% 80% 70%

40% 30% 60% 10% 0%
YES NO

3;%

Interpretation Total Nu mber of Respondents was 37. Many of persons know all ter ms and conditions of home loan i.e. 65%. 35% persons had not know prop erly about all ter ms and conditions

4) How do you come to know about the home loan schemes of that bank? NO. NEWSPAPER TELEVISION INTERNET OTER RESOURCES TOTAL 8 6 11 12 37 % 22% 16% 30% 32% 100%

3=% 30%

30%

3>%

>=% >0% 1=%

10%

>>%
1?%

=%
0%
NEWSPAPER TELEVISION INTERNET OTER RESOURCES

Interpretation Total Nu mber of Respondents was 37 22% persons came to know from newspaper 16% persons came to know from television 30% persons came to know from internet 32% persons came to know from other resource

6<

5) Your bank offer which typ e of services?

NO. MOBILE BANKING NET BANKING FOREX BANKING OTHER TOTAL 14 12 0 11 37

% 38% 32% 0% 30% 100%

38%
40% 3A% 30% DA% D0% BC% B0% A% 0%

3E%

30%

0%

MOBILE BANKING

NET BANKING

FOREX BANKING
%

OTHER

Interpretation 38 p ersons said that bank offer mobile banking services. 32 said that bank offer net banking services. 30% said that bank offer other services. And no one said that bank offer forex banking services.

6) According to you which of the following banks provides optimal or economical interest rate? NO. 8 8 16 5 37 % 22% 22% 43% 14% 100%

ICICI PNB HDFC SBI TOTAL

43% 4G% 40% 3G% 30% 2G% 20% 1G% 10% G% 0%

22%

22% 14%

ICICI

PNB

HDFC

SBI

INTERPRETATION The above graph shows that according to the 43% of tota l sample si e, HDFC provides the optimal/economical interest rate. The next preference is given to ICICI and PNB was providing the optimal interest rate. i.e. 22% And only 14% of the respondent preferred SBI.

7) Which feature of your scheme satisfied you to take it?

LOW INSTALLMENT MAXIMUM TIME PERIOD HIGH INSTALLMENT NOTHING TOTAL

NO. 17 13 4 3 37

% 46% 35% 11% 8% 100%

50% 45% 40% 3I% 30% NL% M0% JL% J0% I% 0%

46%
3I%

JJ%

K%

OOW INPTAOOQENT

QARIQSQ TIQE
PERIOD %

HIGH INPTAOOQENT

NOTHING

INTERPRETATION The above graph shows that according to the 46% respondent satisfy, lower installment. 35% was satisfy maximu m time period, 11% was satisfy high installment And only 8% of the respondent not satisfy any feature of loan schemes.

8) How would you rate the overall quality of your relationship with banks of housing finance considering all of your exp eriences with them? Would you say it is. NO. VERY GOOD GOOD FATR POOR TOTAL 7 18 12 0 37 % 19% 49% 32% 0% 100%

4W%
50%

40%
30% 1V%

3X%

U0%
10%

0%
VERY GOOD GOOD FATR POOR

0%

INTERPRETATION According this chart, mostly 49% respondent rate the overall quality of your relations hip with banks of housing finance good 32% are fair, 19% very good and no one rate in poor .

9) On a scale of 1 to 5 where 1 repres ents extremely dissatisfied and 5 repres ents extremely satisfied How would you rate your level of satisfaction with banks of housing finance in regards to price? NO. EXCELLENT 5 VERY 9 GOOD FAIR 22 POOR 1 TOTAL 37 % 14% 24% 59% 3% 100%

59%

Z0%
50% 40% 30%

[4%
14% 3%

Y0%
10% 0%

EXCELLENT

VERY GOOD
%

FAIR

POOR

INTERPRETATION Mostly 59% respondent level of satisfaction is fair regarding to price, 24% rated in very good, 14% rated in excellent, and only 3% rated in poor .

66

10) In the case of suitability of EMI, which bank would you prefer? NO. 8 6 15 8 37 % 22% 16% 40% 22% 100%

ICICI SBI HDFC PNB TOTAL

40% 30%

40%

^^% _`% ^^%

]0% \0%
0%

ICICI
SBI HDFC

PNB

INTERPRETATION The above graph shows that according to the 40 p ercentage of total sample si e, HDFC provides suitable EMI. The next prefer ence is given to ICICI and PNB has received the third prefer ence for providing suitable EMI. And only 16 p ercent of the sample preferred SBI.

67

11) Are you satisfy by the time taken in sanctioning the loan? NO. 25 12 37 % 68% 32% 100%

YES NO TOTAL

c8%
70% b0% 50% 40% 30% a0% 10% 0% %

3a%

YES

NO

Interpretation:Total Nu mber of Respondents was 37. 68 %persons are satisfied by the time taken 32% persons are not satisfied by the time taken

68

12) And, IN case of long ter m which bank would you choose?

ICICI SBI PNB HDFC TOTAL

NO. 8 8 6 15 37

% 22% 22% 16% 40% 100%

40% 40% 35% 30%

e5% e0%
15%

ff%

ff%
1g%

10% 5% 0%
ICICI SBI PNB HDFC

Interpretation:The above chart depicts that maximu m nu mber of people has preferred HDFC bank for long term loans and 22 percent of people has given preference to ICICI & SBI and only 16% has given preference to PNB.

13) Have you face any difficulty during taking the loan?

YES NO TOTAL

NO. 10 27 37

% 27% 73% 100%

l3%
80%

j0%
40%

ik%

i0%
0% %

YEm

NO

Interpretation Total Nu mber of Respondents was 37. 27% persons face difficulty during taking the loan. 73% persons does not face any difficulty during taking the loan

14) Are you agree with the after home loan s ervices provided by your bank are best as compare to other bank? NO. 4 27 6 0 37 % 11% 73% 16% 0% 100%

STRONGLY AGREE AGREE DISAGREE STRONGLY DISAGREE TOTAL

s0% r0% q0%

50% 40% 30% p0% o0% 0%

t3%

oo%

uq%
0%

STRONGLY AGREE

AGREE

DISAGREE

STRONGLY DISAGREE

Interpretation Total Nu mber of Respondents was 37. 11% among all consu mers are strongly agreed by after sale services of the bank. 73% among all consu mers are agreed by after sale services of the bank 16% among all consu mers are disagreed by after sale services of the bank 0 among all consu mers are strongly disagreed by after sale services of the bank.

7n

15) On a scale of 1 to 5 where 1 repres ents extremely dissatisfied and 5 repres ents extremely satisfied, Did you think the processing system is? NO. % EXCEELLENT 5 14% VERY GOOD 13 35% GOOD 12 32% AVERAGE 7 19% TOTAL 37 100%

35% 35%

3w%

30%

x5% w0%
15%

19%

14%

10%
5%

0%
EXCEELLENT VERY GOOD GOOD AVERAGE

Interpretation Total nu mber of respondent was 37. 35% said processing services is very good. 32% said processing is good. 19% said average and only 14% said excellent.

16) How likely are to recommend which bank of housing finance to a friend or relative ?

ICICI HDFC SBI PNB TOTAL

NO. 7 15 9 6 37

% 19% 41% 24% 16% 100%

45% 40% 35% 30% {5% z0% 15% 10% 5% 0%

41%

z4%
19%

1|%

ICICI

HDFC

SBI

PNB

Interpretation 41% people recommend HDFC bank of housing finance to a friend or relative, 24% are SBI, 19% ARE ICICI and only 16% are recommended PNB.

17) Which grade you want to give of home loan schemes of your bank? NO. 7 21 9 0 37 % 19% 57% 24% 0% 100%

EXCELLENT GOOD AVERAGE BELLOWS AVERAGE TOTAL

57% 60%

50% 40% 30%

19%

~4%

~0%
10% 0%
EXCELLENT GOOD AVERAGE BELLOWS AVERAGE 0%

Series~

Interpretation Total Nu mber of Respondents was 37. 19% persons give excellent grade of the bank. 57% persons give good grade to the bank. Only 24% persons give average grade to the bank. No one give below average grade to the bank

18) According to you , which positive aspect is playing more significant role in success of housing finance banks? NO.
SALES PROMOTION COSTOMER FRENLYNESS LOWER INTEREST RATES LOWER EMIS EASY LOAN SANCTIONING TOTAL

% 16% 22% 32% 8% 22% 100%

6 8 12 3 8 37

35% 30% 25% 20% 15% 10% 5% 0% 1% 22%

32%

22%

8%

COTOER AE PROOTION FRENYNE

LOWER INTERET RATE

%

LOWER EI

EAY LOAN SANCTIONING

Interpretation The above graph depicts that 32% said Lower interest rates are the main aspect for the success of housing finance. 22% said customer friendliness and easy loan sanctioning. 16% said sales promotion and branding. And only 8% said lower EMIS is positive asp ects.

19) any suggestion that you want to give.. NO. 15 % 50

Give well services to customer loan sanction time period Reduce interest rates Sales promotion

17%

10

33%

0 30

0 100%

50
50 40 30

20 10 0 Give well services to customer loan sanction Reduce time period interest rates Sales promotion 17%
33% 0

INTERPRITATION Total respondent in suggestion is 30. According to this graph 50% people said give well services to customer a,17 % said for time period, 33% said reduce inter est rates, and no one said for sales promotion.

76

CHAPTER 6
Page no.

SUMMARY OF FINDINGS

70

SUMMARY OF FINDING
1) According to this project report 74% interested in housing finance. 2) 38% people like to take HDFC bank home loan. Because this bank give well services. 3) I am finding in this project serve more bank use new technology like: internet banking, mobile banking, and forex banking. 4) According to this serve customer satisfied low installment schemes of bank. 5) 72% people did not face any difficulty during takingthe loan 6) Mostly people recommended HDFC bank of hosing finance.

CHAPTER-7
Page no.

7.1 RECOMMENDATION AND CONCLUSION

72

RECOMMENDATION
1. 2. 3. 4. 5. 6. 7. 8. There is more time period for repayment of home loan. Housing finance institution take steps to solve customer problems immediately. Loan sanction date should be according to customer convenient. A customer awareness program should be taking place in rural area. Housing finance bank take feedbacks of customers regarding features & services For the better service new offers would be require. Bank should give all information related to terms and condition. To make people aware about the benefit of becoming Housing finance Banks Sales Executive, following activities of advertisement should be done through 9. Print Media. 10. Hoarding & Banners. 11. Distribution of leaflets containing details information 12. Make people understand about the various benefits of its products..

CONCLUSION
Housing is a growing industry. Various public and private institutions have entered in this field. These institutions have initiated various house financing schemes to cater the diversified needs of this sector. Besides the emerging and expanding institutional set up, the system of credit delivery of housing is still inadequate. The responsibility to provide house finance largely was rested with the Central Government till the early eighties. The setting up of the NHB in 1988, as the apex housing finance institution, was the beginning of the emergence of housing finance as a fund based financial service in the country. Its role fall into three categories promotional, financial and regulatory. Housing finance institutions must become self sustaining units which work on full cost recovery basis and device innovative financial instruments to mobilize their resources from household sector.

CHAPTER-8
8.1 BIBLIOGRAPHY

BIBLIOGRAPHY

y Internet y Catalogs y Research Methodology -C.R.Kothari.

QUESTIONNAIRE
2

Dear respondant, As a part of mba curriculu m, i am conducting a study on " analysis of housing finance schemes of hdfc bank, icici bank, pnb & sbibank". You are requ est ed to please coop erate by providing relevant infor mation. I assure you that infor mation will kept confidential and will be us ed for study purpos e only. Thank you yours faithfully smita jaiswal

y y y y y

NAME-------------------------------------------------------------------------------AGE----------- Nationality----------------------- Inc ome----------------------Contact nu mber--------------------------------, Address-------------------------------------------------------------------------------------------------------------------------------------What is your occupation? Business man Government employee Hous e wife Student Other 1) If you are make or purchas e your own home than areyou like to take facility of Housing Finance? A. Yes B. No

2). If yes Which Housing Finance Bank you chose ? A. B. C. D. E. ICICI Bank HDFC Bank Punjab national bank SBI bank other 3) Are you aware all ter ms and conditions of home loans? A. Yes B. No

4) How do you come to know about the home loan schemes of that bank?
8

A. News paper C. Internet

B. Television D. Other resources

5) Your bank offer which type of services? A. Mobile banking B. Net banking C. Forex banking D. Other 6) According to you which of the following banks provides optimal or economical interest rate? A. ICICI B. PNB C. HDFC D. SBI 7) Which feature of your scheme satisfied you to take it ? A. Low installment C. High installment amount B. Maximum time period D. Nothing

8) How would you rate the overall quality of your relationship with banks of housing finance considering all of your experiences with them? Would you say it is. A. Very good B. Good C. Fair D. Poor

9) On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied How would you rate your level of satisfaction with banks of housing finance in regards to price? A. Excellent Poor 10) In the case of suitability of EMI, which bank would you prefer? A. ICICI B. SBI C. HDFC PNB 11) Are you satisfy by the time taken in sanctioning the loan? A. Yes B. No 12) And, IN case of long term which bank would you choose? A. ICICI B.SBI C.PNB D.HDFC B. Very good C. Good D.

13) Have you face any difficulty during taking the loan? A. Yes B. No

14) Are you agree with the after home loan services provided by your bank are best as compare to other bank?
4

A. Strongly agree C. Disagree

B. Agree D. Strongly disagree

15) On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied, Did you think the processing system is? A. Excellent C. Good B. Very Good D. Average

16) How likely are to recommend which bank of housing finance to a friend or relative ? A. ICICI C. SBI B.HDFC D. PNB

17) Which grade you want to give of home loan schemes of your bank? A. Excellent B. Good C. Average D. Bellows average 18) According to you , which positive aspect is playing more significant role in success of housing finance banks? A. Sales promotion & brand B. Customer friendly home loan schemes C. Lower interest rates D. Lower EMIs E. Easy sanctioning of the home loan 19) Any suggestion that you want to give