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STUDENT DECLARATION
This is to certify that I have completed the Project titled A STUDY ON HOM !OANS" #$der the %#ida$ce of Mr& Amit '#mar (#pta" i$ the partial f#lfillme$t of the re)#ireme$t for the a*ard of the de%ree of Masters i$ +#si$ess Admi$istratio$" from ,#-mi$i Devi I$stit#te Of Adva$ced St#dies. Ne* Delhi&" This is a$ ori%i$al *or- a$d I have $ot s#/mitted it earlier else*here&

,A0NI

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CERTIFICATE
This is to certify that the project titled A STUDY ON HOM !OANS" is a$ academic *or- do$e /y ,A0NI" s#/mitted i$ the partial f#lfillme$t of the re)#ireme$t for the a*ard of the de%ree of Masters i$ +#si$ess Admi$istratio$" from ,#-mi$i Devi I$stit#te Of Adva$ced St#dies. Ne* Delhi&" #$der my %#ida$ce a$d directio$& To the /est of my -$o*led%e a$d /elief the data a$d i$formatio$ prese$ted /y him i$ the project has $ot /ee$ s#/mitted earlier else*here&

Mr& Amit '#mar (#pta 3Project (#ide4 ,DIAS

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ACKNOWLEDGEMENT
"Gratitude is not a thing o e!"ression# it is $ore $atter o ee%ing&" There is al*ays a se$se of %ratit#de *hich o$e e6press to*ards others for their help a$d s#pervisio$ i$ achievi$% the %oals& This formal piece of ac-$o*led%eme$t is a$ attempt to e6press the feeli$% of %ratit#de to*ards people *ho helpf#l me i$ s#ccessf#lly completi$% of my trai$i$%& I *o#ld li-e to e6press my deep %ratit#de to Mr&A$it Khanna my trai$i$% coordi$ator for their co$sta$t co7operatio$& He *as al*ays there *ith his compete$t %#ida$ce a$d val#a/le s#%%estio$ thro#%h o#t the p#rs#a$ce of this research project& Special tha$-s to Mr&A$it Ku$ar Gu"ta *ho %#ided me to *or- ho$estly a$d to %ive val#a/le s#%%estio$ for improvi$% my *or- !ast /#t $ot least I *o#ld also li-e to place of appreciatio$ to all the respo$de$ts *hose respo$ses *ere of #tmost importa$ce for the project& A/ove all $o *ords ca$ e6press my feeli$%s to my pare$ts. frie$ds all those perso$s *ho s#pported me d#ri$% my project& I am also tha$-f#l to all the respo$de$ts *hose cooperatio$ 8 s#pport has helped me a lot i$ collecti$% $ecessary i$formatio$& I *o#ld also li-e to tha$- almi%hty (od for his /lessi$%s sho*ered o$ me d#ri$% the completio$ of project report&

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E'ECUTI(E SUMMAR)
Home is a dream of a perso$ that sho*s the )#a$tity of efforts. sacrifices l#6#ries a$d a/ove all %atheri$% f#$ds little /y little to afford o$e:s dream& Home is o$e of the thi$%s that everyo$e o$e *a$ts to o*$& Home is a shelter to perso$ *here he rests a$d feel comforta/le& Ma$y /a$-s providi$% home loa$s *hether commercial /a$-s or fi$a$cial i$stit#tio$s to the people *ho *a$t to had a home& The ho#si$% sector plays a$ importa$t role i$ the eco$omic developme$t of the co#$try& My project title is A STUDY ON HOM !OANS"& I selected this topic /eca#se The I$dia$ ho#si$% fi$a$ce i$d#stry has %ro*$ /y leaps a$d /o#$d i$ fe* years&Total home loa$s dis/#rseme$ts /y /a$-s has rise$ *hich *it$esses phe$ome$al %ro*th from last ; years& There are %reater $#m/er of /orro*ers of home loa$s&so /y this st#dy *e ca$ fi$d o#t satisfactio$ level of c#stomers a$d pro/lems faced /y them i$ o/tai$i$% home loa$s& M* o+,e-ti.es o stud* are/ < To ma-e comparative st#dy of Dis/#rseme$t of home loa$s /y commercial /a$-s& < To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s& < To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s& =or this I had ta-e$ fo#r commercial +a$-s i$ Dehrad#$ city $amely HD=> +a$-. PN+. sta$dard chartered +a$-. S+I& It i$cl#des t*o p#/lic sector /a$-s a$d t*o private sector /a$-s& The period of st#dy is five years comme$ci$% from 2??972??@& In the resear-h $ethodo%og* I had ta-e$ /oth primary data as *ell as seco$dary data . i$ the primary data I had ma-e a )#estio$$aire to chec- the satisfactio$ level of c#stomers a/o#t home loa$s & I$ the seco$dary data I had st#died the a$$#al reports of ,+I. commercial /a$-s 8 /roachers of these /a$-s& =or the first o/jective I had collected the i$formatio$ a/o#t the $#m/er of acco#$t holders of specified /a$-s. $o of dis/#rseme$t of home loa$s a$d recovery of these loa$s& A ter ana%*sis I -a$e to o%%o0ing indings In the -o$"arati.e stud* o s"e-i ied +an1s it2s ound that P#$ja/ Natio$al +a$- is havi$% lar%e $#m/er of c#stomer /ase *ith hi%h loa$ dis/#rseme$t a$d recovery of loa$s& The sta$dard chartered /a$- sho*ed less o#tsta$di$% /ala$ce *hich prese$ted i$ perce$ta%e form i$ the dia%ram&

In -ase o se-ond o+,e-ti.e i&e& -usto$er satis a-tion %e.e% it is ound that O$ the /asis of data the HD=> is emer%i$% at hi%her positio$ a >ompare to Sta$dard chartered /a$- a$d other p#/lic sector /a$-s o$ (ro#$d of professio$ally ma$a%ed services. relia/le 8 tra$spare$t System. easy )#ery ha$dli$% etc& And "ro+%e$s a-e +* -usto$ers in o+taining ho$e %oans are

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The c#stomer does $ot had proper -$o*led%e a/o#t differe$t Home loa$ prod#cts so they face pro/lem i$ ma-i$% a %ood deal& There are proced#ral delays. *hich harass the c#stomers lot this *ill cr#sh the c#rtsy of c#stomers to avail the home loa$& The attit#de of /a$- employees some times $o$ cooperative a$d it creates a h#rdle i$ /#ildi$% tr#st a$d >o$fide$ce amo$% c#stomers a/o#t /a$-s& The /a$-s do $ot ta-e i$to acco#$t the payi$% capacity of c#stomers& So some c#stomers are $ot a/le to %et amo#$t of !oa$ $eeded /y them&

=i$ally the *hole research *as carried o#t i$ a systematic *ay to reach at e6act res#lts& The *hole research a$d fi$di$%s *ere /ased o$ the o/jectives some of the limitatio$ faced i$ collecti$% the data *ere !ac- of time. lac- of data. $o$7respo$se. rel#cta$t attit#de a$d illiteracy of respo$de$ts. *hich posed pro/lems i$ carryi$% o#t the research& So$e o the suggestions are To i$crease their c#stomers. the /a$-s sho#ld provide specialiAed services i$ this sector& These services ca$ /e s#ch as proper %#ida$ce to the >#stomer re%ardi$% the processi$% of loa$s. especially for the c#stomers *ho are illiterate& To satisfy their c#stomers a$d for %ood deali$%s i$ f#t#re. the /a$-s sho#ld ma-e prompt dis/#rseme$t of loa$ amo#$t to the c#stomers so that they ca$ /#y or co$str#ct their dream home as early as possi/le& The +a$-s sho#ld #se easy proced#re. or say. less le$%thy proced#re for the sa$ctio$i$% of loa$ to the c#stomer& There sho#ld /e less $#m/er of le%al formalities. i$ case this e6ists. the$. these sho#ld /e completed i$ less time& This *ill /e helpf#l i$ attracti$% more c#stomers& Altho#%h the i$terest rates o$ specific $orms. yet c#stomers see- less i$terest rate *hich ca$ lo*er their cost of ho#se& So /a$-s sho#ld try to lo*er their i$terest rates& Needles to say. that the /a$- *hich havi$% lo*er i$terest rates. have the ma6im#m clie$ts for loa$s& The p#/lic sector /a$-s sho#ld improve their overall services to i$crease the $#m/er of c#stomers for home loa$s& They sho#ld recr#it professio$als to provide s#ch services a$d to satisfy the c#stomers&

&

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TA3LE OF CONTENTS

Student De-%aration 44444444444444444444&& i Certi i-ate ro$ Co$"an*5 Organi6ation 4444444444& 4 ii Certi i-ate ro$ guide44444444444444444444 iii A-1no0%edge$ent&&4444444444444444444&&&&&&& i.

E!e-uti.e Su$$ar*444444444444444444444&&. Cha"ter S-he$e4444444444444444444444&& .i List o Ta+%es444444444444444444444444.ii List o gra"hs444444444444444444444444.iii List o -harts444444444444444444444444&i! List o A++re.iations44444444444444444444&&& ! C7A8TER 9: INTRODUCTION/ 9&9 Introdu-tion to ho$e %oans4444444444&&&&&&&&&&&&&&& 9 9&; Ad.antages o ho$e %oans44444444444444 9 9&< Disad.antages o ho$e %oans444444444444&&& ; 9&= Dis+urse$ent o ho$e %oans4444444444444 < C7A8TER ;: O3>ECTI(ES OF T7E STUD)444444444&&&9< ;&9 8ur"ose o the Stud*444444444444444&&&&&&9= ;&; S-o"e o the Stud*4444444444444444&&&&&&9= C7A8TER <: RESEARC7 MET7ODOLOG)444444444&& 9? <&9 Resear-h Design444444444444444444& 9? <&; Data -o%%e-tion444444444444444444&&&& 9? <&< Sa$"%e si6e44444444444444444444&&9@ <&= Sa$"%ing Te-hniAue4444444444444444& 9@ <&BLi$inations44444444444444444444& 9C C7A8TER =: RE(IEW OF LITERATURE44444444444 ;D C7A8TER B: INDUSTR) 8ROFILE4444444444444&& ;; B&9 The 7istor* o Indian ho$e Loans4444444444&& ;; B&; 7o$e Loan "ro-edure in India444444444444&;< B&< Interest rate "ro.ided +* +an1s444444444444;= B&= Indian Mar1et or 7o$e %oans is $ore than Rs&BDDEDDD -r&&&;@

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B&B Indian ho$e %oans Industr*4444444444444&& ;C B&? Re-ent trends oh ho$e %oans in India444444444&&&<9 B&@ I$"a-t o s%o0do0n on ho$e %oan $ar1et in India4444<9 B&C Interest and $ar1et trends in *ear ;DDF44444444&& B&F T*"es o ho$e %oans4444444444444444&&&<B B&9D 7DFC ho$e %oan44444444444444444&&<@ C7A8TER ?: COM8AN) 8ROFILE44444444444444=C C7A8TER @: DIS3URSEMENT OF 7OME LOANS 3) 7DFC 44&?;

<<

C7A8TER C: COM8ARATI(E STUD) OF DIS3URSEMENT OF 7OME LOANS 3) COMMERCIAL 3ANKS 4444444444444444&& ?? C7A8TER F: ANAL)SIS G INTER8RETATION 44444444CD C7A8TER 9D: FINDINGS444444444444444444&F@ C7A8TER 99: RECOMMENDATIONS AND SUGGESTIONS44&& FC C7A8TER 9;: CONCLUSION4444444444444444&9DD 3I3LIOGRA87) 444444444444444444444&& 9D9 ANNE'URES44444444444444444444444 9D<

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TA3LE NO& B&; B&<

LIST OF TA3LES TIT!

Finan-ia% Sna"shot Interest rates "ro.ided +* .arious +an1s CONSOLIDATED EARNINGS HAs at Mar-h <9E ;DDCI 7DFC: =JDF Su$$ar* Dis+urse$ent o ho$e %oans +* di erent +an1s No& o 7o$e %oan a--ount ho%ders 7o$e %oans distri+uted +* 7DFC and -o$$er-ia% +an1s Re-o.er* o 7o$e %oans:/ Outstanding +a%an-e Age grou" o sur.e*ed res"ondents Gender -%assi i-ation o sur.e*ed res"ondents Edu-ation Aua%i i-ation o res"ondent2s No &o *ears are *ou in Dehradun Custo$er "ro i%e o sur.e*ed res"ondents Annua% househo%d in-o$e Do *ou 1no0 a+out 7DFC LTD Reasons or getting 7o$e inan-ed

PA( NO&

;&9 C&2 @&1 @&2 @&5 @&9 @&; D&1 D&2 D&5 D&9 D&; D&B D&C D&@

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D&D D&1? D&11 D&12 D&15

Fro$ 0here *ou ha.e got *our 7o$e inan-ed Sour-e o in or$ation ho$e %oans s-he$e O"inion a+out the ser.i-es o 7DFC LTD O"inion o -usto$ers a+out 7o$e %oan s-he$e Data gi.es "re eren-es o res"ondents o 7o$e %oans -o$"anies and +an1s

1?

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LIST OF GRA87S GRA87 NO

B&9 B&; B&< B&= B&B B&? B&@ ?&< @&9 C&; C&< C&= C&B F&C F&F

TITLE
Indian Mar1et or 7o$e %oans is $ore than Rs&BDDEDDD -rore:/ Indian 7o$e %oans Industr* Indian Mar1et or 7ousing $ortgage inan-e -o$"anies The "ri-es o residents ha.e shot u" .er* high Residentia% "ri-es in India 7ousing shortage in India 7DFC *ie%ding ground 7DFC U"E u" and a0a* 7DFC housing %oan s"reads 7o$e %oans ho%ders o 7DFC and -o$$er-ia% +an1s 7o$e %oans distri+uted +* 7DFC and -o$$er-ia% +an1s Re-o.er* o ho$e %oans 3a%an-e due on ho$e %oans +* 7DFC and -o$$er-ia% +an1s Reasons or getting the ho$e inan-ed Fro$ 0here *ou ha.e got *our ho$e inan-ed

8AGE NO 2@ 2D 5? 5? 51 52 59 ;; B2 C? C2 C; CC @B @@

11

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F&99 F&9; F&9<

O"inion a+out the ser.i-es o 7DFC LTD 8er-entage o satis a-tion %e.e% o -usto$ers o 7DFC LTD Data gi.es "re eren-e o res"ondents ho$e %oans -o$"anies and +an1s

D1 D5 D9

12

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C7ART NO
?&9 F&9 F&; F&< F&= F&B F&?

LIST OF C7ARTS TITLE

Sna"shot o 7DFC LTD Age grou" o sur.e*ed res"ondents Gender -%assi i-ation o sur.e*ed res"ondents Edu-ationa% Aua%i i-ation o res"ondents Sta*ing *ears in Dehradun Custo$ers "ro i%e o sur.e*ed res"ondents Annua% house ho%d In-o$e

8AGE NO ;? CD @? @1 @2 @5 @9 @; @D

D&C
F&9D

A*are$ess a/o#t HD=> !TD

8er-entage o sour-e o in or$ation a+out ho$e %oans s-he$e

15

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LIST OF A33RE(IATIONS A33RE(IATIONS

RO(R NRI R3I 8N3 S3I IIR FLI8 DSAs 3SAs DCO(R R8LR

E'8ANSION
RECOMMENDATION O(ER NON RESIDENT INDIAN RESER(E 3ANK OF INDIA 8UN>A3 NATIONAL 3ANK STATE 3ANK OF INDIA INCOME TO INSTALLMENT RATIO FLE'I3LE LOAN INSTALMENT 8LAN DIRECT SELLING AGENTS 3USINESS SELLING AGENTS DOU3LE C7ECKING O(ER RETAIL 8RIME LENDING RATE

19

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C7A8TER/ 9

1;

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C7A8TER K 9 INTRODUCTION 9&9 INTRODUCTION TO 7OME LOANS

Home is a dream of a perso$ that sho*s the )#a$tity of efforts. sacrifices l#6#ries a$d a/ove all %atheri$% f#$ds little /y little to afford o$e:s dream& Home is o$e of the thi$%s that everyo$e o$e *a$ts to o*$& Home is a shelter to perso$ *here he rests a$d feel comforta/le& Ma$y /a$-s providi$% home loa$s *hether commercial /a$-s or fi$a$cial i$stit#tio$s to the people *ho *a$t to have a home& HD=>73Ho#si$% Developme$t A$d =i$a$ce >orporatio$4 Home !oa$. I$dia have /ee$ servi$% the people for aro#$d three decades a$d providi$% vario#s ho#si$% loa$ accordi$% to their varied $eeds at attractive 8 reaso$a/le i$terest rates& O*i$% to their *ide $et*or- of fi$a$ci$%. HD=> Ho#si$% !oa$s provides services at yo#r doorstep a$d helps yo# fi$d a home as per yo#r re)#ireme$ts& Ma$y /a$-s are providi$% home loa$s at cheapest rate to attract co$s#mers to*ards them& The more c#stomer frie$dly attit#de of these /a$-s. c#rre$tly offer to co$s#mers cheapest loa$ over homes& I$ vie* of ac#te ho#si$% shorta%e i$ the co#$try. a$d -eepi$% i$ mi$d the social E eco$omic role of commercial /a$-s i$ the prese$t times. the ,+I advised /a$-s to e$co#ra%e the flo* of credit for ho#si$% fi$a$ce& Fith the ,+I red#ci$% /a$- rate. the home loa$ mar-et rates $ose7divi$% /y ;? /asis poi$ts& The HD=> +a$- a$d Sta$dard chartered /a$- has /ecome the first player i$ this sector to a$$o#$ce a ho#si$% loa$ for a 2? years period& No do#/t it *ill e$ha$ce the e$d cost people to pla$ their ho#se over lo$%er d#ratio$ $o*G it has /ee$ made easy for a perso$ to /#y that dream ho#se *hich he dreamt of lo$% a%o& HD=> also provides *ith Home Improveme$t !oa$ for i$ter$al a$d e6ter$al repairs a$d other str#ct#ral improveme$ts li-e pai$ti$%. *aterproofi$%. pl#m/i$% a$d electric *or-s. tili$% a$d floori$%. %rills a$d al#mi$i#m *i$do*s& HD=> fi$a$ces #p to @;H of the cost of re$ovatio$ 31??H for e6isti$% c#stomers4& >#rre$t stat#s is that HD=> red#ced home loa$ rates /y ;? /asis poi$ts for all its e6isti$% floati$% rate c#stomers&

9&; AD(ANTAGES OF 7OME LOANS:/

The vario#s /e$efits of home loa$s arisi$% to the c#stomers areI7 HiI Attra-ti.e interest rates:/

1B

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The vario#s /a$-s offer attractive i$terest rates to /oost a$d help their c#stomers& Ma$y /a$-s provide loa$s o$ fi6ed or floati$% rates to facilitate co$s#mers as per their $eeds& HiiI 7e%" in o0ning a ho$e:/ The home availed /y a perso$ *ith the help of /a$-s. /eca#se they provide tech$ical a$d fi$a$cial assista$ce to c#stomers for o*$i$% their dream home& HiiiI No reAuire$ent o guarantor:/ The commercial /a$-s $o* a day. li/erlise their la*s re%ardi$% home loa$s& Some of /a$-s do$:t eve$ re)#ire the %#ara$tor to %ra$t loa$ to their co$s#mers& They also ma-e co$s#mers free /y relivi$% him to fi$d a %#ara$tor to complete the proceedi$%s of availi$% loa$& Hi.I Door/Ste" Ser.i-es:/ These door to step services are provided from e$)#iry sta%e to the fi$al dis/#rseme$t ta-es place s#ch services are /e$eficial for c#stomers i$ prese$t /#sy life& +a$-s li-e I>I>I /a$- a$d sta$dard chartered /a$- provide door to step services to c#stomers to /orro* loa$& H.I Loan "eriod:/ There are ma$y /a$-s *hich provide ma6im#m loa$ te$#res #pto 1;72? years /ased o$ the loa$ amo#$t a$d the creati/ility of c#stomers& This relieves the c#stomers to repay loa$ amo#$t till a lo$% period& H.iI For a--identa% death insuran-e :/ Some /a$-s provide free accide$tal death i$s#ra$ce *ith ho#si$% loa$ *hich is also /e$eficial for the c#stomers& These /e$efits or adva$ta%es of home loa$s are respo$si/le for ma-i$% tha$ so pop#lar amo$% c#stomer that a perso$ *ho do$:t have their home a$d *a$t to /#y. they do it *ith home loa$& Home loa$s help s#ch perso$s i$ ma-i$% their dream home&

9&< DISAD(ANTAGES OF 7OME LOANS:/

The mai$ disadva$ta%es of home loa$s are hi%h li%hte$ed as /elo*I HiI De%a*s in "ro-essing :/ Ma$y times. there are h#%e delays i$ processi$% of providi$% home loa$s /eca#se vario#s form#latio$s to /e f#lfilled i$ this process& D#e to these delays c#stomers feel me$tally as *ell as fi$a$cially *ea-& HiiI F%u-tuating interest rates :/ Some /a$-s %ive home loa$s at floati$% rates. *hich fl#ct#ate at Differe$t i$tervals d#e to some reaso$s& These cha$%es sometimes. may lead to i$crease i$ i$terest rate *hich *ill i$crease the cost of home loa$s to the c#stomers HiiiI 7igh Cost:/

1C

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The p#/lic sector /a$-s char%e hi%h processi$% cost for home loa$:s sa$ctio$i$%& They are forced to pay serio#s char%es at vario#s sta%es to f#lfill the re)#ireme$ts& Some co$s#mers are $ot a/le to pay s#ch char%es so s#ch people co#ld $ot avail the /e$efits of home loa$ schemes&

HiiiI

8ro+%e$s in dis+urse$ent:/ There are ma$y pro/lems i$ dis/#rseme$t of home loa$ amo#$t& There are some delay i$ dis/#rseme$t of loa$ amo#$t to the c#stomers d#e to le%al formalities& This ca#ses pro/lems to the c#stomers& These are limitatio$s or disadva$ta%es of home loa$s& +#t some times some /a$-s char%es hi%h i$stallme$ts to repay loa$ amo#$t& S#ch also ca#ses pro/lem to c#stomers& These limitatio$s ca$ /e removed /y providi$% %ood a$d promote services to the c#stomers&

9&= DIS3URSEMENT OF 7OME LOANS :/

The every /a$- has its o*$ proced#re to dis/#rse the loa$ amo#$t amo$% c#stomers& After choosi$% yo#r ri%ht home. the $e6t step is dis/#rseme$t of home loa$s& The loa$ amo#$t is dis/#rsed after ide$tifyi$% a$d selecti$% the property or home that are p#rchased a$d s#/mit the re)#isite le%al doc#me$ts& I$ the dis/#rseme$t of home loa$s a clear title a$d f#ll verificatio$ to e$s#re that a perso$ has f#ll ri%hts o$ his ho#se& The 25?A cleara$ce of seller a$d Jor 5C1 cleara$ces from the appropriate a#thority of i$come ta6 is also $eeded& HII E%igi+i%it* -riteria:/ Ho*ever. if o$e is a reside$t or $o$7reside$t i$divid#al *ho is pla$$i$% to /#y a ho#se i$ I$dia. o$e ca$ apply for a home loa$& If a perso$ has decided to /#y a property i$ the $ear f#t#re. heJshe ca$ apply for a loa$ /efore eve$ selecti$% the property& O$ce the ma6im#m amo#$t to p#t i$to the property has /ee$ decided. the Ho#si$% =i$a$ce I$stit#tio$s or +a$-s *ill let the c#stomer -$o* that ho* m#ch heJshe is eli%i/le for a$d this helps to pla$ o#t the /#d%et& HiiI Conditions regarding -o/a""%i-ants: / All Ho#si$% =i$a$ce I$stit#tio$s lay do*$ co$ditio$s o$ *ho ca$ /e co7applica$ts& all co7o*$ers to the property& $eed to /e co7applica$ts to the loa$ $ecessarily& These i$stit#tio$s do $ot permit mi$ors to joi$ i$ as either coo*$er or as co7applica$ts /eca#se a mi$or is $ot eli%i/le to e$ter i$to a co$tact as per la*& They do $ot permit eve$ frie$ds or relatives *ho are $ot /lood relatives to ta-e a property joi$tly&Ho*ever. I$come of co7applica$ts ca$ /e cl#//ed to%ether to %et hi%her loa$ eli%i/ility& (ive$ /elo* is a Ta/le that thro* li%ht o$ accepta/le relatio$ship of a co7applica$t for cl#//i$% of i$come& In-o$e C%u++ing o Co/a""%i-ants:7 It is as follo*sI7

1@

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>om/i$atio$ I$come >l#//i$%I 7 7us+and/Wi e: / I$come of h#s/a$d7*ife ca$ /e cl#//ed& 8arent / son: 7 It ca$ /e cl#//ed if o$ly so$ is there /#t $ot if a$y male si/li$% e6ists& 3rother/3rother: 7 If they are c#rre$tly stayi$% to%ether a$d i$te$d to stay to%ether i$ the $e* property. the$ o$ly. their i$come7ca$ /e cl#//ed for a/ove p#rposes& 3rother/Sister: 7 No cl#//i$%7is possi/le& Sister/Sister : / No cl#//i$% is possi/le& 8arent/Minor/ Chi%d: 7 No cl#//i$% is possi/le i$ this case also& HiiiI Genera% Ter$s and Conditions: / The follo*i$% are the terms a$d co$ditio$s applica/le to the /asic home loa$ prod#ct o$ly& These are li-ely to cha$%e o$ the /asis of the variatio$s of the home loa$ prod#ct& Typically. i$ %e$eral home loa$s. the follo*i$% co$ditio$s are applica/le :/ 9I The loa$ to val#e ratio 3!TK4 ca$$ot e6ceed a partic#lar perce$ta%e& This differs from prod#ct to prod#ct a$d from o$e Ho#si$% =i$a$ce I$stit#tio$al +a$- 3H=IJ+4 to a$other& The compo$e$ts of the val#e of the Property calc#lated here are covered #$der cost of property& ;I The ma6im#m te$#re of the /a$- is $omi$ally fi6ed /y H=IJ+s& Ho*ever. H=lsJ+s do provide for differe$t te$#res *ith differe$t terms a$d co$ditio$s& <I The i$stallme$t that o$e pay is $ormally restricted to a/o#t7;?7per ce$t of the mo$thly7%ross i$come of the ca$didate& =I The total mo$thly o#tflo* to*ards all the loa$s that have /ee$ availed of. i$cl#di$% the c#rre$t loa$ is $ormally restricted to ;?H of the %ross mo$thly i$come& BI O$e *ill /e eli%i/le for a loa$ amo#$t *hich is the lo*est as per o$eLs eli%i/ility& This is calc#lated as per the !TK $orms. the H,. $orms a$d the =OI, $orms as me$tio$ed a/ove& ?I Most H=lsJ+s co$sider the profile /efore they j#d%e the repayme$t capacity& The j#d%eme$t is /ased o$ a%e. )#alificatio$s. $#m/er of depe$de$ts. employme$t details. employer crede$tials. *or- e6perie$ce. previo#s trac- record of repayme$t of a$y loa$s that have /ee$ availed of. occ#patio$. the i$d#stry to *hich the ca$didateLs /#si$ess relates to. if heJshe is self7employed. the$ the t#r$over i$ the last 579 years etc&

1D

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@I Some H=IsJ+s i$sists o$ %#ara$tees from other i$divid#als for the repayme$t of the loa$& I$ s#ch cases. the c#stomers has to arra$%e for the perso$al %#ara$tee /efore the dis/#rseme$t of the loa$ ta-es place& CI The property sho#ld /e tech$ically clear /efore the H=IsJ+s dis/#rses the loa$s amo#$t& Most of i$stit#tio$s a$d /a$-s have a teams of tech$ical e6perts *ho visit the site to %et a tech$ical report /efore the dis/#rseme$t of loa$& This is also /e$eficial to the c#stomer as they chec- for the tech$ical )#ality a$d complia$ce *ith local la*s& FI The property sho#ld /e le%ally clear /efore o$e ca$ avail of a dis/#rseme$t of the loa$ amo#$t& Ho#si$%7=i$a$ce I$stit#tio$s J+a$-s 3H=IsJ+s4 ta-e le%al cleara$ce from their la*yers /efore the dis/#rseme$t of amo#$t& This proves to /e /e$eficial to the c#stomers as a le%al e6pert chec-s hisJher doc#me$tatio$ to e$s#re that heJshe %et a proper title to the property& 9DI The dis/#rseme$t of the loa$ is as per the pro%ress of co$str#ctio$ of the property #$less it is a ready property i$ *hich case the dis/#rseme$t *ill /e /y o$e si$%le che)#e& P MI or simple i$terest o$ the loa$ amo#$t dis/#rsed to the c#stomer i$ case of a part dis/#rseme$t *ill /e paya/le /y the c#stomer o$ the dis/#rseme$t& 99I The dis/#rseme$t i$ most cases *ill /e favori$% the /#ilder or the seller or the society or the developme$t a#thority as the case may /e& The dis/#rseme$t *ill come i$ the c#stomerLs favo#r #$der special circ#msta$ces o$ly& 9;I The repayme$t of loa$ ca$ /e made either thro#%h ded#ctio$ a%ai$st salary. post7 dated che)#es. sta$di$% i$str#ctio$s or A#to de/it i$str#ctio$s to /a$-& 9<I The pri$ciple is amortiAed either o$ a$$#al red#ci$% or mo$thly red#ci$% /asis as the case may /e& The a/ove terms a$d co$ditio$s are %e$erally tr#e for most Ho#si$% fi$a$ce I$stit#tio$sJ+a$-s *ith respect to the %e$eral Home !oa$s& Ho*ever. the specific terms a$d co$ditio$s vary *ith respect to special Ho#si$% =i$a$ce I$stit#tio$s or +a$-s& Hi.I Charges a""%i-a+%e to ho$e %oans :/ The differe$t -i$ds of char%es applica/le to home loa$s are disc#ssed /elo*: aI 8ro-essing ees :/ =irst of all. comes the process fee& This is a char%e that is levied /y most H=lsJ+s& This has to /e paid at the time of s#/missio$ of the applicatio$ form& ItLs $ormally char%ed as a perce$ta%e of the loa$ amo#$t sa$ctio$ed& Some H=ls also char%e a flat fee /ased o$ the loa$ amo#$t i$stead of a perce$ta%e& Fhe$ a lo*er amo#$t is sa$ctio$ed the e6cess fees paid at the time of s#/missio$ of the applicatio$ is adj#sted *ith the char%es. *hich

2?

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o$e ma-e to the H=IJ+ s#/se)#e$tly& Most H=lsJ+s ref#$d the processi$% fee if the loa$ applicatio$ is rejected& +I Ad$inistrati.e ees :/ This char%e is a%ai$. $ormally. a perce$ta%e of the loa$ amo#$t sa$ctio$ed& It is collected /y the H=IJ+ for the mai$te$a$ce of c#stomerLs records. iss#i$% i$terest certificates. le%al char%es. tech$ical char%es. etc& tho#%h the te$#re of the loa$& It is paya/le /y the c#stomer *he$ heJshe accepts the offer letter %ive$ /y the H=IJ+& This payme$t has to /e made /efore the availme$t of the dis/#rseme$t& The mode of collectio$ of these fees varies from o$e H=IJ+ to a$other& -I Rate o interest :/ This is the rate of i$terest applica/le o$ the loa$ amo#$t thro#%h the te$#re of the loa$& It is char%ed o$ the pri$cipal mo$thly red#ci$% method& Most H=IsJ+s %ive a$ optio$ to select either a fi6ed rate of i$terest or a varia/le rate of i$terest& dI Lega% Charges:/ Some H=IsJ+s mai$ly P#/lic Sector +a$-s levy le%al char%es that they i$c#r o$ %etti$% the property doc#me$ts vetted /y their pa$el of la*yers& eI Te-hni-a% Charges:/ These char%es are also levied /y certai$ Ho#si$% =i$a$ce I$stit#tio$sJ+a$-s 3H=IsJ+s4 to meet their e6pe$ses o$ the tech$ical site visits to the c#stomerLs property& This e$s#res )#ality of co$str#ctio$ a$d co$str#ctio$ *ithi$ the $orms as stip#lated /y the respective approval a#thority& I Sta$" dut* and registration -harges:/ H=Is that %o i$ for a re%istered mort%a%e pass these char%es o$ to the c#stomer& These are rather heavy i$ certai$ states depe$di$% o$ the la*s laid do*$ /y the state *here o$e /#y a property& gI 8ersona% Guarantee ro$ Charges :/ Si$ce the perso$al %#ara$tee provided /y the c#stomer $eed to /e stamped. these char%es are also recovered from the c#stomer& They are char%ed to him /y H=Is *ho dema$d for (#ara$tees&

21

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hI CheAue 3oun-e Charges :/ I$ case the che)#es thro#%h *hich o$e ma-e a payme$t to H=ls %et disho$ored. some mi$im#m char%es are levied /y the H=I& The same are recovered from the c#stomer& HiI De%a*ed "a*$ent -harges :/ H=lsJ+s char%e delayed payme$t char%es from the c#stomer if heJshe delays the payme$t of i$stallme$ts /eyo$d the d#e date& H,I Additiona% -harges :/ These are levied as a perce$ta%e o$ the delayed payme$t char%es /y most H=ls& They are levied if o$e fail to pay the d#es *ithi$ the stip#lated time after a delay has ta-e$ place& H1I In-identa% -harge :/ This is paya/le i$ case the H=IJ+ se$ds a represe$tative from their or%a$iAatio$ to collect their o#tsta$di$% d#es& It is $ormally char%ed at a flat rate per visit& These char%es are levied /y most H=lsJ+s& %I 8re"a*$ent Charges :/ This is a pe$alty char%ed /y H=lsJ+s from *he$ o$e ma-es either a part prepayme$t or a f#ll repayme$t of the loa$& This char%e is levied o$ly o$ l#mp s#m payme$ts a$d $ot o$ the Mls that o$e pays& This char%e is levied o$ the amo#$t prepaid /y o$e a$d $ot o$ the e$tire o#tsta$di$% pri$cipal& These char%es are %rad#ally /ei$% disco#$t& So. these are the char%es levied /y most Ho#si$% =i$a$ce I$stit#tio$s a$d +a$-s *hile %ra$ti$% home loa$ to the c#stomers& No*. the decisio$ o$ the repayme$t capacity shall /e tal-ed a/o#t as follo*s& H.I >udge$ent regarding re"a*$ent -a"a-it* on the +asis o in-o$e :/ To #$dersta$d ho* the i$come of a c#stomer is co$sidered to arrive at his repayme$t capacity. it is first $ecessary to classify c#stomers i$to salaried a$d self employed i$divid#als& aI The i$come of the salaried i$divid#al is co$sidered i$ the follo*i$% ma$$erI7 (ross mo$thly i$come as it appears o$ the salary slip

22

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Less:/ A$y $o$ re%#lar varia/le i$come appeari$% o$ the salary slip 3i$cl#di$% overtime. etc&4 Add : / ;? per ce$t of the avera%e varia/le i$come of the last si6 mo$ths& Add: / A$y fi6ed cashJvo#cher payme$ts for *hich proof ca$ /e s#/mitted& Add: / ;? per ce$t of the avera%e varia/le cashJvo#cher payme$ts *ith proof li-e traveli$% reim/#rseme$t etc& Add :/ H,A receiva/le if $ot /ei$% received already i$ the salary slip& The a/ove i$come calc#lated for the calc#latio$ of eli%i/ility #si$% II, a$d =OI, $orms& =or calc#latio$ of =OI,. the i$stallme$ts of all the loa$s that o$e has availed of c#rre$tly for *hich repayme$t is /ei$% made is ta-e$ i$to acco#$t as *ell& The lo*er of the t*o eli%i/ilities is co$sidered as the ma6im#m repayme$t capacity& +I To co$sider i$come of Self7employed i$divid#als *e f#rther classify them i$to Professio$als a$d $o$7professio$als & 8ro essiona%s:/ >omprisi$% doctors. chartered acco#$ta$ts. la*yers. architects. etc& =or calc#latio$ of eli%i/ility of professio$alLs i$come is comp#ted /y most H=Is #si$% the %ross professio$al receipts i$stead of the Net profit as i$ the case of self7employed $o$7professio$als& Non/8ro essiona%s: 7 The i$come of $o$7professio$als is $ormally calc#lated /y H=Is i$ the follo*i$% ma$$er: /

Avera%e of the $et profits of last 2 years as it appears i$ the profit a$d loss acco#$t 3,et#r$s $eed to /e filed for the same& They sho#ld /e filed re%#larly /efore the d#e date is over4& Less: / A$y i$come. *hich is #$#s#al a$d $o$7rec#rri$% i$ $at#re li-e sale of some asset. etc *hich affects profits s#/sta$tially. Add: / A$y e6pe$se that is #$#s#al a$d $o$7rec#rri$% i$ $at#re li-e repairs a$d mai$te$a$ce that has $ot /ee$ capitaliAed a$d effect profit adversely& Add: 7 ;? per ce$t of the avera%e depreciatio$ of the last t*o years& The a/ove i$come is calc#lated for the calc#latio$ of eli%i/ility #si$% II, a$d =OI, $orms& =or calc#latio$ of =OI, the i$stallme$ts of all the loa$s that o$e has availed of c#rre$tly for *hich repayme$t is /ei$% made is ta-e$ i$to acco#$t a$d the eli%i/ility is *or-ed o#t& The lo*er of the t*o eli%i/ilities is co$sidered as the ma6im#m repayme$t capacity& 25

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H.iI Credit do-u$entation:/ (ive$ /elo* is the e6ha#stive list of credit doc#me$ts7 that $eed to /e s#/mitted for a %e$eral home loa$ prod#ct& The doc#me$ts vary from o$e H=IJ+ to a$other /ased o$ o$eLs employer. )#alificatio$s e6perie$ce etc& the %e$eral re)#ireme$ts are as follo*s: / HaI In-o$e Do-u$ents : 7 =or salaried slips for the last three mo$ths appoi$tme$ts letter7salary certificate7 retai$ership a%reeme$t. if appoi$ted as a co$s#lta$t7=orm 1B iss#ed /y the employer i$ c#stomerLs $ame i$come doc#me$t for self employee 7 last three years profit a$d loss acco#$t stateme$t d#ly attested /y >hartered Acco#$ta$ts& !ast three years +ala$ce Sheets d#ly attested /y >hartered Acco#$ta$t. last three years I$come Ta6 ,et#r$s *ith comp#tatio$ chart d#ly filed a$d certified /y the I$come Ta6 a#thorities& +I 8roo o e$"%o*$ent : 7 Ide$tify card iss#ed /y the employer7 Kisiti$% card& H-I E$"%o*erLs detai%s HIn -ase o "ri.ate %i$ited -o$"aniesI : / Profile of employer o$ employers letterhead 3to /e si%$ed /y a se$ior perso$ i$ the or%a$iAatio$4 comprisi$% M Name of promoterJdirectors M +ac-%ro#$d of promotersJdirectors M Nat#re of /#si$ess activity of yo#r employer M N#m/er of employees M !ist of /ra$chesJfactories M !ist of s#ppliers M !ist of clie$tsJc#stomers M T#r$over of employer M A$$#al reports of the employer for the last t*o to three years& HdI 8roo o age HAn*one o the o%%o0ingI : 7 Passport7 KoterLs ID card7PAN card7,atio$ card7 mployerLs ide$tity card7School leavi$% certificate7+irth certificate&

29

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HeI 8roo o residen-e HAn*one o the o%%o0ingI : / ,atio$ card7Passport7 PAN card7,e$t a%reeme$t. if the c#stomer is stayi$% c#rre$tly o$ re$t7 +a$- Pass /oo-7Allotme$t letter from the compa$y if heJshe is residi$% i$ compa$y )#arters& H I 8roo o na$e -hange HI a""%i-a+%eI : / A copy of the official %aAette EA copy of a $e*spaper advertiseme$t p#/liciAi$% the $ame cha$%e7Marria%e certificates& HgI 8roo i in.est$ent HI reAuiredI :/ +a$- stateme$t for the last si6 mo$ths of all operati$% a$d salary acco#$ts 7 +a$- stateme$ts for the last si6 mo$ths of all c#rre$t acco#$ts. if self7employed7a$y other photocopies of i$vestme$ts held. if re)#ired /y the H=>& H.iiI Lega% do-u$entation :/ !e%al Doc#me$tatio$ the typical le%al doc#me$ts that $eed to /e s#/mitted to the H=> arc disc#ssed here& (ive$ /elo* is a list of le%al property doc#me$ts that $eed to /e s#/mitted to the H=> for mort%a%e of the property& The $ame a$d the list of doc#me$ts vary from state to state a$d also depe$d o$ the type of property /ei$% fi$a$ced& A /road o#tli$e of the doc#me$ts re)#ired is %ive$ /elo*& aI Accepta$ce copy of the offer letter iss#ed /y the H=>J+& +I Title doc#me$ts of the property that i$cl#de 7sale a%reeme$t d#ly ,e%istered7O*$ co$tri/#tio$ receipts 7 Allotme$t letter7,e%istratio$ receipt7!a$d doc#me$ts i$dicati$% o*$ership. if applica/le7 Possessio$ letter7!ease a%reeme$t. if applica/le 3Property /o#%ht from a developme$t a#thority4 7 Mort%a%e deed if the H=> opts for a re%istered mort%a%e& -I No O/jectio$ >ertificate from the developer. society or developme$t a#thority as applica/le& dI Perso$al (#ara$tees. if applica/le& eI I$ case of alter$ator additio$al sec#rity. doc#me$ts for the same depe$di$% #po$ the sec#rity details&

2;

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I Post dated che)#es for the Mls& The a/ove doc#me$ts are o$ly i$dicative i$ $at#re a$d do $ot cover the e$tire list& It may. also /e $oted that i$ a resale case. the previo#s chai$ of a%reeme$t also $eed to /e ta-e$& H.iiiI The ta! +ene its that are a""%i-a+%e to housing %oans or indi.idua%s :/ >#rre$tly Ta6 +e$efits to i$divid#als are availa/le o$ly for the Home !oa$s a$d Home 6te$sio$ !oa$s prod#cts& The /e$efits availa/le are covered #$der these sectio$s& 8ro"ert* Insuran-e :/ Is it -o$"u%sor* to insure the "ro"ert*N some H=ls i$sist o$ a mort%a%e redemptio$ life i$s#ra$ce policy& I$ this case the c#stomer %ets a /e$efit of a$ i$terest rate red#ctio$& Tho#%h the H=I may $ot i$sist. it is /etter to %o i$ for property i$s#ra$ce to safe%#ard the asset a%ai$st a$y sort of dama%e or loss& The c#stomer ca$ select the te$#re for the property i$s#ra$ce& The i$s#ra$ce premi#m is cha$%ed #p fro$t& Most i$s#ra$ce compa$ies provide for h#%e disco#$ts o$ the rate of premi#m for lar%er te$#res& The premi#m char%ed c#rre$tly is seve$ty7seve$ for every la-h of property for a year& So a c#stomer has to f#lfill vario#s co$ditio$s to /e eli%i/le for availi$% home loa$ from a Ho#si$% =i$a$ce I$stit#tio$J+a$- After f#lfilli$% these co$ditio$s. a c#stomer ca$ avail loa$ at lo* i$terest rate i&e& fi6ed rate floati$% rate& A decisio$ o$ *hether o$e sho#ld %o i$ for a fi6ed7rate loa$ or a floati$%7rate loa$ $o* is a f#$ctio$ of t*o factors i&e& O$eLs perceptio$ of *here i$terest rates i$ the eco$omy are headed a$d o$eL capacity to ride the i$terest rate cha$%es& A floati$%7rate loa$ let o$e ta-e adva$ta%e of f#rther falls i$ i$terest rates /#t o$e sta$d to loose if i$terest rate. rise a%ai$& Ho*ever this decisio$ is /ased o$ the perceptio$ of the co$s#mer&

2B

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C7A8TER/;

2C

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C7A8TER/; O3>ECTI(ES OF STUD)

There is $o stro$%est fo#$datio$ for yo#r dream home. tha$ a cheap loa$& Home loa$s have /ecome that stro$%er fo#$datio$s for people *ho *a$t to o*$ a home& The mai$ o/jectives of the st#dy are as follo*s I7 9I The mai$ o/jective of this st#dy is to -$o* the >#stomers perceptio$s a/o#t home loa$s of HD=> ho#si$% developme$t fi$a$ce corporatio$ !TD& ;I To a$alyAe the history of hdfc ltd& <4 (e$erati$% %ood /#si$ess to the compa$y /y promoti$% a$d selli$% the prod#cts of HD=> !TD& =4 To -$o* the ideas of c#stomers a/o#t home loa$ prod#cts a$d services& BI To ma-e comparative st#dy of Dis/#rseme$t of home loa$s /y >ommercial /a$-s& ?I =i6i$% the appoi$tme$ts *ith the c#stomers& @I To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s&

2@

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CI To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s& FI Kisiti$% the c#stomers a$d closi$% the deal& 9DI To lear$ a/o#t vario#s aspect of hdfc home loa$ ltd&

;&9 8UR8OSE OF T7E STUD)

The mai$ p#rpose of this st#dy is to attai$ the -$o*led%e of the processi$% system of home loa$s& the mai$ p#rpose of the st#dy are as follo*s I7 To -$o* the ideas of c#stomers a/o#t home loa$ prod#cts a$d services&

To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s& To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s&

To lear$ a/o#t vario#s aspect of HD=> home loa$ ltd&

;&; SCO8E OF STUD)

The I$dia$ ho#si$% fi$a$ce i$d#stry has %ro*$ /y leaps a$d /o#$d i$ fe* years& total home loa$s dis/#rseme$ts /y /a$-s has rise$ *hich *it$esses phe$ome$al %ro*th from last ; years& There are %reater $#m/er of /orro*ers of home loa$s& so /y this st#dy *e ca$ fi$d o#t satisfactio$ level of c#stomers a$d pro/lems faced /y them i$ o/tai$i$% home&

2D

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C7A8TER /<

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C7A8TER/< RESEARC7 MET7ODOLOG) OF T7E STUD)

RESEARC7 MET7ODOLOG):/ ,esearch methodolo%y is a *ay to systematically sho* the research pro/lem& It may /e #$derstood as a scie$ce of st#dyi$% ho* research is do$e scie$tifically& It is $ecessary for the researcher to -$o* $ot o$ly the research methods /#t also the methodolo%y& This Sectio$ i$cl#des the methodolo%y *hich i$cl#des& The research desi%$. o/jectives of st#dy. scope of st#dy alo$% *ith research methodolo%y a$d limitatio$s of st#dy etc& To -$o* the >#stomers perceptio$s a/o#t home loa$s of HD=> ho#si$% developme$t fi$a$ce corporatio$ !TD& To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s& To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s& To ma-e comparative st#dy of dis/#rseme$t of home loa$s /y commercial /a$-s. the st#dy shall /e co$d#cted i$ the ma$$er e$#merated /elo*7

<&9/ RESEARC7 DESIGN:/ This project is /ased o$ e6ploratory st#dy as *ell descriptive st#dy& It *as a$ e6ploratory st#dy *he$ the c#stomer satisfactio$ level *as st#died to s#%%est $e* methods to improve the services of HD=> !TD i$ providi$% home loa$s a$d it *as

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descriptive st#dy *he$ detailed st#dy *as made for compariso$ of dis/#rseme$t of home loa$s /y commercial /a$-s& <&; K SOURCES OF DATA :/ To f#lfill the i$formatio$ $eed of the st#dy& The data is collected from primary as *ell as seco$dary so#rces7 A / 8RIMAR) SOURCE:/ I decided primary data collectio$ method /eca#se o#r st#dy $at#re does $ot permit to apply o/servatio$al method& I$ s#rvey approach *e had selected a )#estio$$aire method for ta-i$% a c#stomer vie* /eca#se it is feasi/le from the poi$t of vie* of o#r s#/ject 8 s#rvey p#rpose& Fe co$d#cted 1?? sample of s#rvey i$ o#r project to j#d%e the satisfactio$ level of c#stomers *hich too- home loa$s& < Sa$"%e si6e#/ =or the )#estio$$aire I have ta-e$ the sample siAe of 1?? c#stomers of HD=> !TD& 3 K SECONDAR) SOURCE:/ It *as collected from i$ter$al so#rces& The seco$dary data *as collected o$ the /asis of or%a$iAatio$al file. official records. $e*s papers. ma%aAi$es. ma$a%eme$t /oo-s. preserved i$formatio$ i$ the compa$y:s data/ase a$d *e/site of the compa$y& <&</ SAM8LING :/ Sampli$% refers to the method of selecti$% a sample from a %ive$ #$iverse *ith a vie* to dra* co$cl#sio$s a/o#t that #$iverse& A sample is a represe$tative of the #$iverse selected for st#dy& SAM8LE SIOE :/ !ar%e sample %ives relia/le res#lt tha$ small sample& Ho*ever. it is $ot feasi/le to tar%et e$tire pop#latio$ or eve$ a s#/sta$tial portio$ to achieve a relia/le res#lt& So. i$ this aspect selecti$% the sample to st#dy is -$o*$ as sample siAe& He$ce. for my project my sample siAe *as 1??& The Sample SiAe co$sists of /oth the Professio$al a$d +#si$ess class people& IT peoples. Doctors. 0e*elers. Tim/er Mercha$ts 8 ,eal estate A%e$ts are ta-e$ as Sample& SAM8LING TEC7NIJUE:/

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,a$dom sampli$% tech$i)#e *as #sed i$ the s#rvey co$d#cted& TOOLS OF ANAL)SIS:/ Data has /ee$ prese$ted *ith the help of /ar %raph. pie charts. li$e %raphs etc& 8LAN OF ANAL)SIS:/ Ta/les *ere #sed for the a$alysis of the collected data& The data is also $eatly prese$ted *ith the help of statistical tools s#ch as %raphs a$d pie charts& Perce$ta%es a$d avera%es have also /ee$ #sed to represe$t data clearly a$d effectively& <&= DATA COLLECTION INSTRUMENT DE(ELO8MENT :/ The mode of collectio$ of data *ill /e /ased o$ S#rvey Method a$d =ield Activity& Primary data collectio$ *ill /ase o$ perso$al i$tervie*& I have prepared the )#estio$$aire accordi$% to the $ecessity of the data to /e collected& <&B LIMITATIONS OF T7E STUD):/ This st#dy also i$cl#des some limitatio$s *hich have /ee$ disc#ssed as follo*sI iI The sample siAe of 1?? c#stomers a$d 9 /a$-s mi%ht prove a limitatio$ /eca#se of diffic#lty i$ %e$eraliAatio$ of res#lts& iiI To collect the data from vario#s /a$-s *as )#ite diffic#lt d#e to $o$7 cooperatio$ of some /a$-s& This proved to /e major limitatio$ of the st#dy& iiiI To access s#ch a lar%e $#m/er of c#stomers *as diffic#lt /eca#se of $o$7cooperative attit#de of respo$de$ts& i.I !ac- of data *as also the other limitatio$ of the st#dy as some of /a$-s do $ot have proper data o$ topic& .I There *as limitatio$ of time to co$d#ct s#ch a /i% s#rvey i$ limited availa/le time& .iI I%$ora$ce a$d rel#cta$t attit#de of c#stomers *as also a major limitatio$ i$ this st#dy& Th#s a/ove all *ere the limitatio$s i$ this research st#dy& The ma6im#m efforts *ere made to overcome these limitatio$s i$ the st#dy&

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C7A8TER/=

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C7A8TER K = RE(IEW OF LITERATURE

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SUMMAR):/ < After %oi$% thro#%h pervio#s st#dies of Home loa$s I came to co$cl#de that7 < There is %ro*th of home loa$s after 2??1& < Home loa$s have a$ i$verse relatio$ *ith i$terest rates i&e& *he$ i$terest rate lo* the dema$d of home loa$s i$crease& 3Ojha 1D@C4 < People are %oi$% more to*ards home loa$s tha$ private mort%a%e i$s#ra$ce & 3+erstai$ 2??@4 < (over$me$t ta-i$% vario#s steps to e$co#ra%e people to %o to*ard home loa$s & 3Haavio. 'a#ppi 2???4 < (ro*th of home loa$s are d#e to i$crease of livi$% sta$dard of people. shifti$% from joi$t family to $#clear family &3!aco#rr. Micheal 2??C4 < There are some pro/lems also attach *ith these home loa$s s#ch as time i&e filli$% of applicatio$ of loa$ to closi$% .people have their o*$ specified $eeds from these home loa$s *hich are $ot f#lfilli$%& 3!aco#r Micheal 2??B4& < S+I provide a very lo* i$terest rate o$ home loa$s as compared to other /a$-s& 3S+I May 2???4 No0 a ter this -on-%usion the detai%s o re.ie0s are +e%o0/ 3erstain Da.id H;DDFI e6ami$ed i$ his st#dy ta-e$ from 2??1 to 2??@ that i$ this period there is i$crease #se of home loa$s as compared to private mort%a%e i$s#ra$ce 3PMI4&he have divided his st#dy i$to fo#r sectio$s& Sectio$ 1 descri/es *hy people are %oi$% more for home loa$s tha$ PMI& the mai$ reaso$ for this that $o* home loa$s mar-et provide Pi%%y/a$- loa$s for those people *ho do$:t have 2?H of do*$ payme$t& Sectio$ 2 tells the factors respo$si/le for the %ro*th of home loa$s a$d the ris-s o$ shifti$% to*ard home e)#ity mar-et *itho#t a$y PMI covera%e& PMI ca$ protect le$ders from most losses #p to @?H of !TK a$d the a/se$ce of PMI *ill res#lt i$ co$sidera/le losses i$ a$ e$viro$me$t& Sectio$ 5 tells the meas#res i$ cha$%es of type of loa$s& =or this he have ta-e$ the data from the 2??1 a$d 2??C AHS a joi$t project /y HUD a$d >e$s#s The res#lts of this a$alysis prese$ted i$ Ta/le O$e reveal a sharp i$crease i$ the Prevale$ce of o*$er7occ#pied properties *ith m#ltiple mort%a%es amo$% properties *ith Ne*ly ori%i$ated first mort%a%es& Sectio$ 9 descri/e the =i$a$cial stat#s of si$%le7lie$ a$d m#ltiple7lie$ ho#seholds a$d for this he have ta-e$ the s#rvey of co$s#mer fi$a$ce a$d sho* that fi$a$cial positio$ is more *ea-er i$ m#ltiple loa$s tha$ the si$%le loa$s& (ande%%E Kerr* D H;DDCI a$alysis the sharp rise a$d tha$ s#dde$ly drop do*$ home prices from the period 1DD@7 2??@& cha$%es i$ prices are for the reaso$s as s#ch eco$omic

5B

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f#$dame$tals . the pro/lem *as $ot s#/ prime le$di$% per se. /#t the =edMs dramatic red#ctio$s. the$ i$creases i$ i$terest rates d#ri$% the early7 mid72??? . the ho#si$% N/oom *as co$ce$trated i$ those mar-ets *ith si%$ifica$t s#pply7side restrictio$s. *hich te$d to /e more price7volatileG he pro/lem *as $ot i$ the e6cess s#pply of credit i$ a%%re%ate. or the i$crease i$ s#/ prime per se. /#t rather i$ the i$creased or red#ced prese$ce of certai$ other mort%a%e prod#cts& La -ourrE Mi-hea% H;DD@4 a$alysis i$ his st#dy the factors affected the i$crease i$ the level of A$$#al perce$ta%es rates 3AP,4 spread reporti$% d#ri$% 2??; over 2??9& the three mai$ factors are cha$%es i$ le$der /#si$ess practicesG 324 cha$%es i$ the ris- profile of /orro*ersG a$d 354 cha$%es i$ the yield c#rve e$viro$me$t& The res#lt sho* that after co$trolli$% for the mi6 of loa$ types. credit ris- factors. a$d the yield c#rve. there *as $o statistically si%$ifica$t i$crease i$ reporta/le vol#me for loa$s ori%i$ated directly /y le$ders d#ri$% 2??;. tho#%h i$direct. *holesale ori%i$atio$s did si%$ifica$tly i$crease& =i$ally. %ive$ a model of the factors affecti$% res#lts for 2??972??;. *e predict that 2??B res#lts *ill co$ti$#e to sho* a$ i$crease i$ the perce$ta%e of loa$s that are hi%her priced *he$ fi$al $#m/ers are released i$ Septem/er 2??C& La -our Mi-hea% H;DD?I e6ami$ed the home p#rchase mort%a%e prod#ct prefere$ces of !MI ho#seholds& O/jectives of his st#dy to a$alysis the factors that determi$ed factors their choice of mort%a%e prod#ct . is differe$t i$come %ro#ps have some specified $eed to met partic#lar prod#ct& The role prici$% a$d prod#ct s#/stit#tio$ play i$ this se%me$t of the mar-et a$d do res#lts vary *he$ loa$s are ori%i$ated thro#%h mort%a%e /ro-ersO =or this they have #se the re%ressio$ a$alysis a$d the res#lts are hi%h i$terest ris- red#ce loa$ val#e& Self employed /orro*er chooses red#ce doc#me$ted loa$s tha$ salaried *or-ers&#se of this prod#ct type seems to /e more prevale$t amo$% /orro*ers *ith s#/sta$tial f#$ds for do*$ payme$t a$d /etter credit scores& I$ case of prici$% M#lti families re)#ires price premi#m a$d lar%er loa$s carry lo*er rate& A$d the role of time. partic#larly. the time re)#ired for the loa$ to proceed from applicatio$ to closi$% it is fi$d that %over$me$t le$di$% ta-i$% the lo$%est time a$d No$prime loa$s the shortest time&M#lti family properties ta-e lo$%er time i$ closi$%& A$d d#ri$% pea- seaso$ ta-e lo$%er time to close& A$d for last o/jective it is fi$d that /ro-er ori%i$ated loa$s close faster&The effect of mort%a%e /ro-ers o$ prici$% a$d other mar-et o#tcomes is fertile %ro#$d for additio$al research& Dr& Rangara,an C& H;DD9I said that the fi$a$cial system of I$dia /#ilt a vast $et*or- of fi$a$cial i$stit#tio$s a$d mar-ets over times a$d the sector is domi$ated /y /a$-i$% sector *hich acco#$ts for a/o#t t*o7third of the assets of or%a$iAed fi$a$cial sector& 7aa.ioE Kau""i H;DDDI stated that co#$tries *here a lar%e proportio$ of the pop#latio$ lives i$ o*$er E occ#pied ho#si$% are e6perie$ci$% hi%her #$employme$t rates& Tha$ co#$tries *here the majority of people live i$ private re$tal ho#si$%. *hich mi%ht s#%%est that re$tal ho#si$% e$ha$ces la/o#r mo/ility& I$ this paper. they develop a simple i$ter temporal t*o re%io$ model that allo* #s to compare o*$er occ#pied ho#si$% mar-ets to re$tal mar-ets a$d to a$alyAe ho* these alter$ative arra$%eme$ts allocate people i$ space

5C

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a$d time& a$$o#$ced that it *ill offer loa$s for ,s& 271? la-h at 12&; perce$t the lo*est rate offered /y a$y ho#si$% fi$a$ce provider. /i% /rother S+I has ta-e$ the rate *ar i$ the home loa$s cate%ory to $e* hei%hts& This is /eca#se. apart from the lo* rate. the i$terest o$ these loa$s is calc#lated o$ pri$cipal. *hich is red#ced every mo$th #$li-e other ho#si$% fi$a$ce compa$ies *hich calc#late i$terest o$ a$$#ally red#ci$% /asis& Narasi$ha$ Co$$ittee H9FF9I poi$ts o#t that altho#%h the /a$-i$% system i$ o#r co#$try has made rapid pro%ress d#ri$% the last t*o decades. there is decli$e i$ prod#ctivity a$d efficie$cy a$d erosio$ of profita/ility& The committee stro$%ly ma-e i$dicatio$s of li/erlisi$%. dere%#lati$% eco$omy to ma-e I$dia$ /a-i$% system more competitive a$d efficie$t& O,ha H9FC@I i$ his paper Pmoder$ i$ter$atio$al capariso$ of prod#ctivity a$d Profita/ility of p#/ic sector /a$-s of I$diaP ma-i$% >ompariso$ o$ the /asis of per employee i$dicators a$d ta-i$% e6amples of state /a$- %ro#p a$d P#$ja/ Natio$al /a$$oted that I$dia$ /a$-s are the lo*est i$ all acco#$ts& Ho*ever s#ch i$ter$atio$al compariso$ *ill $ot /e fair for $#m/ers of reaso$s& Godse H9FC<I i$ his essay. loo-i$% a fresh at /a$-i$% prod#ctivity" o/serve that prod#ctivity aspect is o$ly at the >o$cept#aliAatio$ sta%e i$ /a$-i$% i$d#stry& He s#%%ested improveme$t i$ prod#ctivity a$d proced#res. costi$% of operatio$s a$d capital e6pe$dit#re etc& Fanning H9FC;4. *hile e6ami$i$% /a$- prod#ctivity of +ritish /a$-s o/served that altho#%h the prod#ctivity of the U' cleari$% /a$-s is improvi$%. they are still heavily over ma$$ed as compared *ith similar /a$-s else *here& Ku%1arni H9F@FI i$ his st#dy Developme$t respo$si/ility a$d profita/ility of /a$-s" stated that *hile co$sideri$% /a$-s costs a$d profits. social /e$efits arisi$% o#t of it ca$$ot /e i%$ored& He s#%%ested that *hile meeti$% social respo$si/ility /a$-s sho#ld try to ma-e developme$tal /#si$ess as s#ccessf#l as possi/le& (arde and Singh H9F@FI i$ a st#dy Pprofita/ility of commercial /a$-sP over 1; years %ave co$sideratio$ to t*o types of factors that effects i$terest rates levels i&e& i$ter$al factors 3i$cl#di$% operatio$al a$d ma$a%erial efficie$cy of i$divid#al /asis4& 3an1ing Co$$ission H9F@;4 revie*ed /a$- operati$% methods a$d proced#res a$d made recomme$datio$s for improvi$% a$d moder$iAi$% these. partic#larly relati$% to c#stomers services. credit proced#re a$d i$ter$al co$trol systems& It o/served that prese$t methods of *or-i$% o#t /ra$ch profita/ility are $ot appropriate a$d a$ i$te%rated costi$% a$d fi$a$cial reporti$% system is $eeded& De"art$ent o 3an1ing o"erations and de.e%o"$entE R3I I +om/ay o/served that the rapid e6pa$sio$ of /a$-s activities si$ce 1DC? called for a phase of co$solidatio$s to improve the )#ality of /a$-s operatio$al efficie$cy. prod#ctivity a$d c#stomer services&

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C7A8TER/B

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C7A8TER/B INTRODUCTION TO T7E INDUSTR)

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B&9 T7E 7ISTOR) OF INDIAN 7OME LOANS:/ 7o$e %oans in India have made people +#y Property i$ I$dia i$ spite of the s-yroc-eti$% prices& Today. *e fi$d co$sidera/le ,eal state I$vestme$t i$ I$dia. either i$ the field of ,eside$tial Property i$ I$dia or >ommercial Properties i$ I$dia& Home !oa$s i$ I$dia are dis/#rsed /y ma$y +a$-s as !oa$ +a$-i$% is o$ of the most importa$t f#$ctio$ of the Finan-ia% Ser.i-es in India& Property Dealers a$d ,eal state >o$s#lta$ts i$ I$dia #s#ally recomme$d that *e #$derta-e appropriate Home !oa$ or Mortgage Loan co#$seli$% so that *e ca$ +#y Apartme$t i$ I$dia at a$ afforda/le Mort%a%e ,ate&P#rchasi$% the home of yo#r dreams is $ot a$ easy tas-& specially *he$ yo# pla$ to /#y a home o$ loa$& Home loa$ mea$s that yo# /#y a ho#se o$ i$stallme$ts& I$ simpler terms *he$ yo# *a$t to o*$ a home a$d ca$:t afford to pay the amo#$t i$ l#mp s#m. yo# ca$ pay it i$ mo$thly i$stallme$ts *ith a$ i$terest rate& The interest rates o ho$e %oans are e6pected to %o do*$ eve$ f#rther accordi$% to a$alysts *ho foresee a c#t do*$ i$ the rates /y the ,+I i$ the *a-e of the decisio$ ta-e$ /y US =ederal ,eserve to c#t its rates /y a si%$ifica$t mar%i$& There are $#m/er of compa$ies offer cheap home loa$s at a lo* i$terest rate& Yo# ca$ avail loa$ a%ai$st e6isti$% ho#se for re$ovatio$ or e6pa$sio$ etc& There are ma$y $atio$aliAed /a$-s that offer fi$a$ce for afforda/le ho#si$%& I$dia Ho#si$% has p#t to%ether a comprehe$sive data to provide yo# *ith the cheapest Home !oa$s availa/le i$ the mar-et& Fe have listed all the importa$t ho#si$% fi$a$ce i$stit#tes a$d some of the top home fi$a$ce /a$-s providi$% lo*est i$terest rates& I$ the last fe* years. ho#si$% loa$ sce$ario i$ I$dia has cha$%ed drastically& It has ta-e$ a fro$t seat a$d people are loo-i$% for*ard to o*$i$% their o*$ ho#ses& It is $o more a dream that re)#ired lifetime savi$% a$d a diffic#lt decisio$ to ma-e& Today the $e* home p#rchase loa$ is m#ch easily availa/le a$d is m#ch cheaper tha$ *hat *as availa/le earlier& +a$-s are $o* every*here a$d the schemes are impleme$ted eve$ i$ villa%es a$d smaller to*$s& The ho#si$% loa$s are pop#lar there too. ho*ever. the activity of /#ildi$% flats is little slo*& It *o#ld $ot /e *ro$% to say that there has /ee$ a /oom i$ the home loa$ mar-et a$d *ith this /oomG there is also a /oom i$ the N#m/er of home loa$s mort%a%e /ro-ers i$ I$dia& The mai$ reaso$ for this /oom i$ home loa$ mar-et is the cha$%e i$ %over$me$t policies& It is o#r %over$me$t:s motivatio$ that the home loa$ i$terest rates i$ I$dia have falle$ co$sidera/ly& !ot ma$y /a$-s are offeri$% home loa$s a$d this is availa/le at lo* MIs 3 )#ated mo$thly I$stallme$ts4& Hi%h MIs are $o* a thi$% of past& Today le$di$% rate is i$ the ra$%e of C&; to 1; H& A%ai$. there are differe$t types of home loa$s availa/le today& The i$terest rate availa/le is also of t*o differe$t types& O$e is the fi6ed rate loa$ a$d the other is the floati$% rate loa$& I$ the fi6ed rate loa$. *hatever i$terest is fi6ed o$ the start of loa$ is carried o$ for the complete period& Ho*ever. i$ the other o$e. the i$terest rate is $ot fi6ed a$d as the i$terest rate %oes #p or lo* the effect is directly tra$sferred to the perso$ *ho is ta-i$% the loa$& I$ the last fe* years the floati$% i$terest rate has /ee$ a favorite amo$% most of the people ta-i$% home loa$s& There is also a tre$d to opt for home co$str#ctio$ loa$& This loa$ is availa/le to those *ho *a$t to desi%$ their homes accordi$% to their re)#ireme$t a$d taste& I$ other *ords. this loa$ is mea$t for those *ho themselves *a$t to co$str#ct their $e* home&

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As shared earlier. ta-i$% a loa$ is $ot a diffic#lt tas-& Ho*ever. /efore ta-i$% a loa$. o$e m#st realiAe that the relatio$ship *ith the /a$- *ill /e for a lo$%er period #s#ally 1; to 2? years so o$e m#st e$s#re faith a$d i$te%rity i$ /a$-& Apart from lo* rate of i$terest. the /a$- sho#ld also provide some val#e added services& The other thi$% is to loo- i$to is the property that is to /e /ro#%ht& Ma-i$% s#re that the /#ilder has all sa$ctio$s a$d facility to /#ild a %ood /#ildi$% is very importa$t& Ta-i$% home loa$s these days has /ecome simpler& Fith the ,+I re%#larly /ri$% do*$ i$terest ratesG ta-i$% home loa$s have /ecome e6tremely easy& Ho#si$% loa$s *hich *ere 1B&;H to 1@H a fe* years a%o fell /y 11&;H to 15H& Fith i$terest rates %oi$% do*$. people i$creasi$%ly $#m/er apply to ta-e these loa$s& Some of the leadi$% /a$-s offeri$% home loa$s i$ I$dia. i$cl#di$% I>I>I +a$-. ID+I +a$-. HD=> +a$- . +a$- of +aroda. S+I. Sta$dard >hartered +a$- a$d A6is +a$- & B&; 7o$e Loan 8ro-edure in India I7 Su+$ission o A""%i-ation For$: / After choosi$% a partic#lar home loa$. the c#stomer s#/mits the applicatio$ form to the ho#si$% fi$a$ce compa$y 3H=>4 alo$% *ith other releva$t doc#me$ts as re)#ired /y the H=>& They comprise doc#me$ts to esta/lish i$come. a%e. reside$ce. employme$t. i$vestme$ts. etc& The c#stomer also $eeds to ha$d over a che)#e for payme$t of a$ #p fro$t 3$o$ 7ref#$da/le4 processi$% fee of a/o#t ?&;71H of the loa$ amo#$t to the H=>& (a%idation o the In or$ation: / I$ the $e6t sta%e. H=>s validate the i$formatio$ provided /y the c#stomer o$ the applicatio$ form& They #s#ally co$d#ct chec-s o$ the reside$tial address of the c#stomer. the place of employme$t of the c#stomer. a$d crede$tials of the employer& Some H=>s may i$sist o$ a perso$al i$tervie* *ith the c#stomer a$d perform a refere$ce chec- o$ the refere$ces provided /y the c#stomer o$ the applicatio$ form& Issue o San-tion Letter :/ After d#e appraisal of c#stomer profile. a sa$ctio$ letter is iss#ed *hich co$tai$s details s#ch as loa$ amo#$t. rate of i$terest. a$$#al J mo$thly red#ci$% /ala$ce. te$or of the loa$. mode of repayme$t a$d %e$eral terms a$d co$ditio$s of the loa$& This is the act#ally the approval of the mo$ey le$di$% proced#re /y the compa$y& Ho*ever. the mo$ey is sa$ctio$ed o$ly after the doc#me$ts a$d the property o$ /ehalf of *hich the loa$ is /ei$% %ra$ted is thoro#%hly verified& Su+$ission o Do-u$ents: / O$ce the sa$ctio$ letter is passed. the c#stomer is re)#ired to leave the e$tire set of ori%i$al doc#me$ts pertai$i$% to the property /ei$% p#rchased *ith the H=> as sec#rity for the loa$ amo#$t sa$ctio$ed& These doc#me$ts remai$ i$ the c#stody of the H=> till the time the loa$ is f#lly repaid& O$ce the doc#me$ts are ha$ded over to the H=>. they se$d all the doc#me$ts for a thoro#%h le%al scr#ti$y& (a%idation o 8ro"ert*: / Prior to dis/#rseme$t. the H=> also co$d#cts a site visit to the c#stomerLs property to e$s#re that all co$str#ctio$ $orms have /ee$ adhered to properly& O$ce the H=> is satisfied that the property is le%ally a$d tech$ically clear. they dis/#rse the loa$ amo#$t& The dis/#rseme$t from the H=I is o$ the /asis of the sta%e of co$str#ctio$ of the property&

92

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8a*$ent 8ro-edure: / O$ce all the a/ove me$tio$ed process. the /orro*er is e$titled to ta-e the mo$ey from the le$der party& U$til s#ch time that the e$tire sa$ctio$ed amo#$t is $ot dra*$. the c#stomer is s#pposed to pay a simple i$terest o$ the Act#al Amo#$t dra*$ 3*itho#t a$y pri$cipal repayme$ts4& The MI payme$ts comme$ces o$ly after the e$tire sa$ctio$ed loa$ amo#$t is dra*$& B&< INT , ST ,AT S P,OKID D +Y KA,IOUS +AN'S Finan-e Institution Loan 8eriod Hin *earsI Up to ; +a$- of +aroda B to 1? 11 to 1; 1B to 2? Up to ; State +a$- Of I$dia B to 1? 11 to 1; 1B to 2? Up to ; HD=> B to 1? 11 to 1; 1B to 2? Fi!ed EMI 5 La1h HINRI 2?CB 125? 1?99 D52 21?? 15?? 7 7 21C; 15C; 115C 1?55 F%oating EMI 5 La1h HINRI 2?2@ 122C DC? @B@ 2?B9 12@? 1?2D D9D 21?1 12D9 1?9; D55

D&?? D&2; D&;? D&;? D&;? D&C; 7 7 11 11 11 11

@&?? @&2; @&2; @&;? @&C; D&2; D&2; D&C; D&;? D&;? D&;? D&;?

Up to ; I>I>I +a$B to 1? 11 to 1; 1B to 2? Up to ; !I> Ho#si$% =i$a$ce B to 1? 11 to 1; 1B to 2?

1?&C; 1?&C; 1?&C; 1?&C; 1?&;? 11 11 11

21B2 15B9 C21 1?1B 219D 15C5 115C 1?52

D&;? D&;? D&;? D&;? D&;? D&;? D&;? D&;?

21?1 12D9 1?9; D55 21?? 12D9 1?99 D52

95

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Up to ; PN+ Ho#si$% =i$a$ce B to 1? 11 to 1; 1B to 2?

D&?? D&?? D&2; D&;? 11 D&?? D&?? D&2; D&;?

2?CB 12BC 1?5? D55 1?52 2?CB 12BC 1?5? D55

1?&;? 1?&;? 1?&;? 1?&;? D&;? 1?&;? 1?&;? 1?&;? 1?&;?

21;? 15;? 11?B DDD D52 21;? 15;? 11?B DDD

1B to 2? Up to ; B to 1? PN+Ho#si$% =i$a$ce 11 to 1; 1B to 2?

The a/ove ta/le ill#strates the compariso$ /et*ee$ the i$terest rates from vario#s Ho#si$% =i$a$ce >ompa$ies a$d /a$-s& It ca$ /e see$ that if o$e *ishes to %o for floati$% loa$s. the /a$- *hich %ives the /est deal as far as the i$terest rate is co$cer$ed is HD=> follo*ed /y PN+ Ho#si$% =i$a$ce *ith the lo*er rates& Lo-1/in a-i%it* +* +an1s :/ A loc-7i$. also called a rate7loc- or rate commitme$t. is a le$der:s promise to hold a certai$ i$terest rate a$d a certai$ $#m/er of poi$ts for yo#. #s#ally for a specified period of time. *hile yo#r loa$ applicatio$ is processed& 3Poi$ts are additio$al char%es imposed /y the le$der that are #s#ally prepaid /y the co$s#mer at settleme$t /#t ca$ sometimes /e fi$a$ced /y addi$% them to the mort%a%e amo#$t& O$e poi$t e)#als o$e perce$t of the loa$ amo#$t&4 Depe$di$% #po$ the le$der. yo# may /e a/le to loc- i$ the i$terest rate a$d $#m/er of poi$ts that yo# *ill /e char%ed *he$ yo# file yo#r applicatio$. d#ri$% processi$% of the loa$. *he$ the loa$ is approved. or later& A loc-7i$ that is %ive$ *he$ yo# apply for a loa$ may /e #sef#l /eca#se it:s li-ely to ta-e yo#r le$der several *ee-s or lo$%er to prepare. doc#me$t. a$d eval#ate yo#r loa$ applicatio$& D#ri$% that time. the cost of mort%a%es may cha$%e& +#t if yo#r i$terest rate a$d poi$ts are loc-ed i$. yo# sho#ld /e protected a%ai$st i$creases *hile yo#r applicatio$ is processed& This protectio$ co#ld affect *hether yo# ca$ afford the mort%a%e& Ho*ever. a loc-ed7i$ rate co#ld also preve$t yo# from ta-i$% adva$ta%e of price decreases, #$less yo#r le$der is *illi$% to loc- i$ a lo*er rate that /ecomes availa/le d#ri$% this period& It is importa$t to reco%$iAe that a loc-7i$ is $ot the same as a loa$ commitme$t. altho#%h some loa$ commitme$ts may co$tai$ a loc-7i$& A loa$ commitme$t is the le$der:s promise to ma-e yo# a loa$ i$ a specific amo#$t at some f#t#re time& (e$erally. yo# *ill receive the le$der:s commitme$t o$ly after yo#r loa$ applicatio$ has /ee$ approved& This commitme$t #s#ally *ill state the loa$ terms that have /ee$ approved 3i$cl#di$% loa$ amo#$t4. ho* lo$% the commitme$t is valid. a$d the le$der:s co$ditio$s for ma-i$% the loa$s s#ch as receipt of a satisfactory title i$s#ra$ce policy protecti$% the le$der& Ora% or 0ritten %o-1/in agree$entN :/

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Some le$ders have prepri$ted forms that set o#t the e6act terms of the loc-7i$ a%reeme$t& Others may o$ly ma-e a$ oral loc-7i$ promise o$ the telepho$e or at the time of applicatio$& Oral a%reeme$ts ca$ /e very diffic#lt to prove i$ the eve$t of a disp#te& It is *ise to o/tai$ *ritte$. rather tha$ ver/al. loc-7i$ a%reeme$ts to ma-e s#re that yo# f#lly #$dersta$d ho* yo#r le$der:s loc-7i$s a$d loa$ commitme$ts *or- a$d to have a ta$%i/le record of yo#r arra$%eme$ts *ith the le$der& This record may /e #sef#l i$ the eve$t of a disp#te& Charges o a %o-1/in:/ !e$ders may char%e yo# a fee for loc-i$% i$ the rate of i$terest a$d $#m/er of poi$ts for yo#r mort%a%e& Some le$ders may char%e yo# a fee #p7fro$t. a$d may $ot ref#$d it if yo# *ithdra* yo#r applicatio$. if yo#r credit is de$ied. or if yo# do $ot close the loa$& Others mi%ht char%e the fee at settleme$t& The fee mi%ht /e a flat fee. a perce$ta%e of the mort%a%e amo#$t. or a fractio$ of a perce$ta%e poi$t added to the rate yo# loc- i$& The amo#$t of the fee a$d ho* it is char%ed *ill vary amo$% le$ders a$d may depe$d o$ the le$%th of the loc-7i$ period& T*"es o %o-1/in:/ Lo-1ed/In Interest Rate//Lo-1ed/In 8oints :/ U$der this optio$. the le$der lets yo# loc- i$ /oth the i$terest rate a$d poi$ts )#oted to yo#& This optio$ may /e co$sidered to /e a tr#e loc-7i$ /eca#se yo#r mort%a%e terms sho#ld $ot i$crease a/ove the i$terest rate a$d poi$ts that yo#:ve a%reed #po$ eve$ if mar-et co$ditio$s cha$%e& Lo-1ed/in Interest Rate//F%oating 8oints:/ U$der this optio$. the le$der lets yo# loc- i$ the i$terest rate. *hile permitti$% or re)#iri$% the poi$ts to rise a$d fall 3float4 *ith cha$%es i$ mar-et co$ditio$s& If mar-et i$terest rates drop d#ri$% the loc-7i$ period. the poi$ts may also fall& If they rise. the poi$ts may i$crease& ve$ if yo# float yo#r poi$ts. yo#r le$der may allo* yo# to loc-7i$ the poi$ts at some time /efore settleme$t at *hatever level is the$ c#rre$t& 3=or i$sta$ce. say yo#:ve loc-ed i$ a 1?Q perce$t i$terest rate. /#t $ot the 5 poi$ts that *e$t *ith that rate& A mo$th later. the mar-et i$terest rate remai$s the same. /#t the poi$ts the le$der char%es for that rate have dropped to 2Q& Fith yo#r le$der:s a%reeme$t. yo# co#ld the$ loc- i$ the lo*er 2Q& Poi$ts&4 If yo# float yo#r poi$ts a$d mar-et i$terest rates i$crease /y the time of settleme$t. the le$der may char%e a %reater $#m/er of poi$ts for a loa$ at the rate yo#:ve loc-ed i$& I$ this case. the /e$efit yo# mi%ht have had /y loc-i$% i$ yo#r rate may /e lost /eca#se yo#:ll have to pay more i$ #p7fro$t costs& I$dia$ co$omy is %ro*i$% at a $ice pace 3@H p&a4 *hich is also drivi$% per capita i$come rise& The dema$d of real estate has reached at a $e* pea- accordi$% to $i$th five year pla$ there is a shorta%e of 92millio$ ho#ses &+#t i$ I$dia the fi%#res to (DP are smaller i$ compariso$ to the other co#$tries >o$tri/#tio$ of ho#si$% to (DP is close to @H& So#rcesI NH+

9;

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B&= Indian Mar1et or 7o$e %oans is $ore than Rs&BDDEDDD -rore:/ Today. $ot o$ly the metros are *it$essi$% the ho#si$% cr#$ch eve$ the seco$d tier cities li-e7 0aip#r. +h#/$esh*ar. !#c-$o*. Trive$dr#m etc& are falli$% i$to the dearth of livi$% space a$d *a$ti$% for more e6pa$sio$& India Re"ort: I$dia$ credit report i$ compariso$ to the other Asia$ co#$tries is sho*$ i$ the statistics /elo*. *hich is amo$% the lo*est& It is I$dia$ psyche that credit is termed /ad. I$dia$ are traditio$ally $ot i$cli$ed to ta-e credit this reflects i$ the fi%#res /elo*I7 GRA87 :/ B&9

B&B Indian ho$e %oans Industr*:/

9B

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I$dia$ Home loa$s i$d#stry is %ro*i$% at a fast pace 5?H per a$$#m. this ca$ /e see$ i$ the stats sho*$ /elo* *ith avera%e tic-et siAe 3loa$ siAe4 a$d Amo#$t dis/#rsed is risi$% every year the opport#$ities have /ecome more domi$a$t for differe$t or%a$iAatio$ i$ I$dia& The dema$d drivers are fast %ro*i$% middle class pop#latio$. rise i$ *or-i$% *ome$ *or-force. /i%%er aspiratio$s of yo#th. Ta6 savi$%. Tra$spare$cy i$ the real estate mar-et& GRA87:/ B&;

Still i$ compariso$ to other $atio$s I$dia has a lo$% *ay to %o. The fi%#res sho*$ /elo* sho*s that eve$ the (DPJmort%a%e ratio is lo* *hich i$dicates that credit is $ot *ell so#%ht as fi%#re /elo* sho*s the avera%e perce$ta%e of mort%a%e to (DP &

GRA87:/B&<

9C

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>ompariso$ *ith other $atio$s I$dia fall /ehi$d i$ terms of Mort%a%e Pe$etratio$ *hich directly demo$strates the pote$tial i$ I$dia$ mar-et for Ho#si$% mort%a%e fi$a$ce compa$ies GRA87:/ B&=

So#rcesI ,+I

,eal state is c#rre$tly so#%ht of as a %reat mea$s of I$vestme$t. the prices of reside$ts have shot #p very hi%h *hich is clearly sho*$ i$ the fi%#re /elo*. the major cities have *it$esses lot of developme$t a$d price appreciatio$ *hich demo$strates the

9@

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%ro*i$% dema$d & more a$d more people are mi%rati$% to cities for *or- J /#si$ess& More a$d more jo/s are created a$d price i$de6 rise /ecomes i$evita/le& 8ri-e Inde!: FIG/B&B

The a/ove fi%#re sho*s the rise i$ prices of space per s) feet i$ differe$t major cities& 7ousing shortage in India: / The /elo* fi%#re sho*s the ever7i$creasi$% dema$d for ho#ses i$ I$dia a$d also me$tio$ed here is the ,#ral a$d #r/a$ re)#ireme$t& +a$-s are drivi$% $e* strate%ies to tap /oth the mar-ets i$ a differe$t *ay E ,#ralJUr/a$& There are cate%ories *ith I$dia$ loa$ dema$d. *hich is sho*$ i$ this fi%#re

FIG:/ B&?

9D

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B&? Re-ent trends o ho$e %oan in India:/ I$ order to #$dersta$d the rece$t tre$ds *e $eed to -$o* or #$dersta$d vario#s factors& These factors play vital role i$ I$dia$ home loa$ mar-et& These i$cl#de i$terest rate o$ *hich /a$-s provide home loa$. ta6 re/ate o$ home loa$ a$d its impact& Apart from this to #$dersta$d the rece$t tre$d *e $eed to compare the tre$ds of home loa$ of differe$t years& Here *e have compared the i$terest a$d other mar-et tre$ds of year 2??D *ith 2??C7?@& This -i$d of compariso$ %ives the res#lt *hich helps #s to #$dersta$d the tre$ds of mar-et of a$y i$d#stry& Apart from the impact of prese$t a$d past eco$omic #ps a$d do*$ also affect the tre$ds& Today the US slo*do*$ is the major iss#e *hich has affected almost all the i$d#stry& So *e have also disc#ssed this iss#e i$ terms to defi$e tre$d of home loa$ mar-et i$ I$dia& B&@ I$"a-t o s%o0do0n on ho$e %oan $ar1et in India:/ The fear of a recessio$ looms over the U$ited States& A$d as the cli$ch %oes. *he$ever the US s$eeAes. the *orld catches a cold& This is evide$t from the *ay the I$dia$ mar-ets crashed ta-i$% a c#e from a pro/a/le recessio$ i$ the US a$d a %lo/al eco$omic slo*do*$& U&S slo*do*$ has affected almost all sectors $ot o$ly i$ US /#t to all over the *orld& I$dia$ eco$omy has also /ee$ affected /y this slo*do*$ /eca#se I$dia is a %ro*i$% co#$try a$d almost i$ all sectors vario#s m#lti$atio$al compa$ies have major co$tri/#tio$& So the role of this slo*do*$ is a major iss#e to /e disc#ssed *hile tal-i$% a/o#t Home !oa$ Mar-et i$ I$dia& +a$-ers *ho *ere earlier falli$% over each other to dole o#t home loa$s. eve$ for soft f#r$ishi$%s. have s#dde$ly /ecome choosy& +a$-s li-e S+I. I>I>I +a$-. UTI +a$-. ID+I +a$- a$d leadi$% mort%a%e firm HD=> are $o* appare$tly ma-i$% a co$scio#s attempt to c#r/ their a%%ressio$ i$ the home loa$ mar-et&sit#atio$ is li-e that if a c#stomer *ho rece$tly approached a private sector /a$- for a home loa$ of a/o#t ,s 1? la-h for a te$#re of 1; years fo#$d. to his shoc-. that the eve$t#al loa$ dis/#rseme$t *as j#st ,s ; ;?

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la-h& Most /a$-ers are$Lt *illi$% to co$firm a$y slo*do*$ i$ their home loa$ portfolio& O$ record. they attri/#te the mar%i$al dip i$ home loa$ dis/#rseme$ts to the rece$t hi-e i$ i$terest rate& Privately. ho*ever. they have a differe$t story to tell& PThe slo*do*$ i$ the home loa$ mar-et for select players li-e I>I>I +a$- *as evide$t from 0a$#ary& I>I>I +a$-Ls avera%e home loa$ dis/#rseme$t i$ a mo$th is aro#$d ,s 2.;?? crore i$ a mo$th. *hich has come do*$ to almost ,s 2.??? crore i$ March.P said a private sector /a$-er& I>I>I +a$- officials de$ied a$y slo*do*$ i$ their home loa$ portfolio a$d they say that the rece$t dip i$ i$terest rates has had some impact o$ dis/#rsals& Ho*ever. i$ a/sol#te terms. it is still lo*& ve$ this slo*do*$ the deposit %ro*th for the sector as a *hole is aro#$d 1CH. *hile credit is %ro*i$% at almost 2@H. forci$% /a$-s to /ecome selective& I$stit#tio$s $o* char%e a floati$% rate of @ to @&2; per ce$t o$ home loa$s a/ove ,s 2? la-h& I$itial estimates /y /a$-ers s#%%est that the i$crease i$ rate for home loa$s a$d other se%me$ts *o#ld /e aro#$d 2;7;? /asis poi$ts 3?&2;H to ?&;H4& ve$ as the provisio$i$% re)#ireme$t has %o$e #p aro#$d B? /asis poi$ts. the hi-e i$ i$terest rates may /e lo*er as the impact *o#ld /e felt for the first year& It *o#ld also depe$d o$ ho* *ell capitaliAed the /a$-s are as the rise i$ provisio$i$% a$d ris- *ei%hta%e *o#ld affect the ret#r$ o$ e)#ity for /a$-s& Fea-er /a$-s a$d /a$-s *ith a lar%e portfolio of these loa$s are li-ely to /e more affected a$d may hi-e rates first& Home loa$ %ro*th of dis/#rsals *ere at 2? per ce$t i$ 2??C7?@ accordi$% to a st#dy /y the credit rati$% a%e$cy >,ISI!. a Sta$dard 8 Poor:s compa$y& This rate is lo*er tha$ the 5? per ce$t a$$#al i$crease see$ i$ the past three years. /#t i$ a/sol#te terms represe$ts a s#/sta$tial e6pa$sio$& The slo*er %ro*th reflects the impact of risi$% property prices a$d i$terest& 7DFC: *ie%ding Ground: / !oa$ %ro*th may slo* do*$ i$ 2??D71? as the compa$y loses some mar-et share&

GRA87 :B&@

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>ompetitio$ is $ot $e* to HD=>. after all I>I>I +a$- *as a to#%h competitor *he$ it *e$t o$ a c#stomer ac)#isitio$ spree some years /ac-& This time aro#$d. altho#%h I>I>I may $ot /e i$ a positio$ to %ive HD=> a r#$ for its mo$ey. p#/lic sector /a$-s. especially State +a$- of I$dia 3S+I4 co#ld& The differe$ce /et*ee$ fo#r years a%o a$d $o* is that mo$ey today is $ot yet cheap a$d certai$ly $ot as i$e6pe$sive as it *as /ac- i$ 2??9 a$d 2??;& Of co#rse *ith /a$- loa$s to HD=> $o* treated as priority le$di$%. the cost of f#$ds for HD=> sho#ld come do*$& +#t sho#ld lo$%7term rates %o #p. HD=> *ill feel the pi$ch& That:s *hy the mar-et sat #p a$d too- $ote *he$ S+I -ic-ed off a$ @ per ce$t i$7 the7 first 7year prod#ct /elievi$% HD=> co#ld lose some mar-et share& I$ the rece$t rally. the stoc- *hich had pl#$%ed to a t*o year lo*. has %ai$ed 51 per ce$t to the Se$se6:s 25 per ce$t& The %ood $e*s is that tra$sactio$s co#ld start pic-i$% #p i$ the seco$d half of 2??D $o* that property prices have started tre$di$% do*$ as have i$terest rates& +#t altho#%h the home loa$ major /elieves it ca$ ma$a%e a %ro*th of 2? per ce$t i$ 2??D71?. a$alysts are $ot so s#re& >!SA poi$ts o#t that HD=>:s loa$ %ro*th 3pre7 sec#ritisatio$4 *o#ld /e aro#$d 1;71C per ce$t& O$e reaso$ for this is that HD=> +a$may $o* hold /ac- a hi%her proportio$ of loa$s that it ori%i$atesG the /a$- c#rre$tly so#rces j#st over a fo#rth of HD=>:s loa$s& As a res#lt HD=>:s operati$% i$come may i$crease /y a/o#t 1; per ce$t i$ 2??D7 1? *hile its $et profits sho#ld %ro* /y a/o#t 1?712 per ce$t& HD=> has al*ays scored *he$ it comes to -eepi$% /ad loa$s i$ chec-. *hich is *hy a fe* delays or eve$ defa#lts *ill $ot h#rt the /ala$ce sheet& At ,s 1.B;5.the stoc- trades at aro#$d 2&@ times the estimated adj#sted /oo- val#e for 2??D71?& B&C Interest and $ar1et trends in *ear ;DDF:/ Home loa$ i$terest rates. especially o$ $e* home loa$ acco#$ts. started softe$i$% from the /e%i$$i$% of this year *he$ the ,eserve +a$- of I$dia 3,+I4 a$$o#$ced sharp c#ts i$ the repo rate a$d cash reserve ratio ;2

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3>,,4& The ,+I started slashi$% the -ey policy rates si$ce Octo/er last year. after ta-i$% i$to acco#$t the *orse$i$% li)#idity sit#atio$ of /a$-s here& The ce$tral /a$- has red#ced its -ey policy i$terest rates 3repo a$d reverse repo4 a$d reserve ratio 3>,,4 fo#r times i$ the last si6 mo$ths& The c#t i$ the repo rate mea$t commercial /a$-s *o#ld have f#$ds availa/le at a lo*er cost& O$ the other ha$d. the c#t i$ the >,, mea$t /a$-s *o#ld have to -eep less mo$ey *ith the ,+I a$d he$ce they had more mo$ey to le$d& A$alysts /elieve that i$terest rates have $ot yet /ottomed o#t a$d there *ill /e f#rther c#ts i$ /orro*i$% rates over the $e6t fe* mo$ths& Fhile the i$terest rate c#t e6pectatio$ is a thi$% of the past. the )#estio$ is *ill it %o /ac- to the old levels of C7@ perce$t *hich co$tri/#ted to a property /oomO >o$se$s#s is already /#ildi$% #p for the fact that *e are headed to*ards a lo* i$terest rate re%ime i$ the comi$% co#ple of years. i$ li$e *ith %lo/al tre$ds& I$ the case of the domestic eco$omy. the tri%%er for lo* i$terest rates has already happe$ed o$ the deposit fro$t *ith /a$-s red#ci$% the rate /y 172 perce$t i$ the last fe* *ee-s& No*. the deposit rate has come do*$ to si$%le di%it eve$ *ith respect to lo$% term deposits 3o$ 57; years4 a$d that *o#ld mea$ /a$-s have access to cheaper f#$ds& Fith i$flatio$ too slidi$% do*$ at a rapid pace. there is hope for co$ti$#a$ce of a cheaper rate re%ime& =ollo*i$% i$ State +a$- of I$dia:s 3S+I:s4 footsteps. other state7r#$ /a$-s may also come o#t *ith scheme offeri$% home loa$ at a fi6ed rate of @H& The I$dia$ +a$-s: Associatio$ 3I+A4 *o#ld revie* the respo$se of /orro*ers to*ards the S+I scheme after three *ee-s a$d if it fi$ds that there has /ee$ a %ood respo$se. other /a$-s *ill follo* s#it& !ast *ee-. S+I had a$$o#$ced that it *o#ld offer home loa$s at a flat rate of @H to all /orro*ers a$d *o#ld freeAe this rate for o$e year& The chairma$ of o$e of the major /a$-s. *ho as-ed $ot to /e $amed. said S+I ca$ afford to le$d at s#ch cheap rate as it has o$e of the /est c#rre$t a$d savi$%s acco#$t 3>ASA4 deposit ratio& >ASA deposits are the cheapest so#rce of f#$ds for a /a$- a$d a hi%h >ASA deposit ratio /ri$%s do*$ their avera%e cost of f#$ds& This i$ t#r$ helps the /a$- i$ offeri$% cheaper credit *hile mai$tai$i$% their $et i$terest mar%i$ 3NIM4& NIM is the differe$ce /et*ee$ the rates at *hich /a$-s /orro* a$d le$d& State7o*$ed /a$-s started c#tti$% their home loa$ rates after co#$tryLs lar%est le$derG State +a$- of I$dia froAe its $e* home loa$ rates at ei%ht per ce$t for o$e year rece$tly& 7DFC Redu-es 7o$e Loan Rate 3* D&B 8er-ent: / Home fi$a$ce major HD=> red#ced home loa$ rates /y ;? /asis poi$ts for all its e6isti$% floati$% rate c#stomers& HD=> also said that it *ill char%e 1?&2; perce$t of i$terest a$$#ally from $e* applica$t for a loa$ of ,s 2? la-h or less& A$d for loa$s of more tha$ ,s 2? la-h. it *ill char%e i$terest at 11&2; perce$t& The /a$- also red#ced the i$terest rate o$ deposits that it accepts from the p#/lic /y ;? /asis poi$ts& I$ a stateme$t to the media. HD=> i$formed that all the cha$%es *ill come i$to effect from Decem/er 22& HD=> *as a/le to /ri$% home loa$ c#ts /eca#se the %over$me$t a$d ,+I had ta-e$ series of meas#res to i$f#se li)#idity i$to the eco$omy& Over the last three mo$ths. ,+I has c#t -ey policy rates. i$cl#di$% cash reserve ratio. repo a$d reverse repo rates. a$d stat#tory li)#idity ratio& (over$me$t has also i$f#sed mo$ey i$to the ho#si$% sector thro#%h the Natio$al Ho#si$% +a$-& PSU /a$-s are also forced to c#t rates for $e* home loa$s #p to ,s 2? la-h&

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Altho#%h i$ the past fe* *ee-s several /a$-s c#t home loa$ rates. /#t those decisio$s applied o$ly to $e* c#stomers& HD=> is the first major ho#si$% le$der to c#t rates for /oth c#rre$t a$d $e* c#stomers& Fhile comme$ti$% o$ this matter. 'e-i Mistry. HD=> vice chairma$ a$d MD said that the /a$- *as a/le to e6ercise the move especially /eca#se of the rece$t red#ctio$ i$ the cost of f#$ds& The *holesale f#$di$% rate has decli$ed from Octo/er7Novem/er levels he$ce HD=> decided to pass o$ the /e$efits to its c#stomers. /oth old a$d $e* o$es& B&F T*"es o ho$e %oans: / Ho#si$% loa$s offered /y /a$-s are of differe$t typesI7

Home P#rchase !oa$s Home >o$str#ctio$ !oa$s Home Improveme$t !oa$s Home 6te$sio$ !oa$s Home >o$versio$ !oa$s !a$d P#rchase !oa$s Stamp D#ty !oa$s +rid%e !oa$s +ala$ce Tra$sfer !oa$s ,efi$a$ce !oa$s !oa$s to N,Is

7o$e "ur-hase %oans:/ This is the /asic home loa$ for the p#rchase of a $e* home& If yo# *a$t to /#y a flat i$ some society or some already /#ilt ho#se. /a$-s a$d H=>s sa$ctio$ yo# home p#rchase loa$s for this process& 7o$e -onstru-tion %oans:/ This loa$ is availa/le for the co$str#ctio$ of a $e* home o$ a said property& The doc#me$ts that are re)#ired i$ s#ch a case are sli%htly differe$t from the o$es yo# s#/mit for a $ormal Ho#si$% !oa$& If yo# have p#rchased this plot *ithi$ a period of o$e year /efore yo# started co$str#ctio$ of yo#r ho#se. most H=>s *ill i$cl#de the la$d cost as a compo$e$t. to val#e the total cost of the property& I$ cases *here the period from the date of p#rchase of la$d to the date of applicatio$ has e6ceeded a year. the la$d cost *ill $ot /e i$cl#ded i$ the total cost of property *hile calc#lati$% eli%i/ility& 7o$e i$"ro.e$ent %oans:/ These loa$s are %ive$ for impleme$ti$% repair *or-s a$d re$ovatio$s i$ a home that has already /ee$ p#rchased. for e6ter$al *or-s li-e str#ct#ral repairs. *aterproofi$% or i$ter$al *or- li-e tili$% a$d floori$%. pl#m/i$%. electrical *or-. pai$ti$%. etc& O$e ca$ avail of s#ch a loa$ facility of a home improveme$t loa$. after o/tai$i$% the re)#isite approvals from the releva$t /#ildi$% a#thority& the follo*i$% are comi$% #$der the home improveme$t loa$sI ;9

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6ter$al repairs Tili$% a$d floori$% I$ter$al a$d e6ter$al pai$ti$% Pl#m/i$% a$d electrical *orFaterproofi$% a$d roofi$% (rills a$d al#mi$#m *i$do*s Faterproofi$% o$ terrace >o$str#ctio$ of #$der%ro#$dJoverhead *ater ta$Pavi$% of compo#$d *all 3*ith sto$eJtileJetc&4 +ore*ell&

7o$e e!tension %oans:/ A$ e6te$sio$ loa$ is o$e *hich helps yo# to meet the e6pe$ses of a$y alteratio$ to the e6isti$% /#ildi$% li-e e6te$sio$J modificatio$ of a$ e6isti$% homeG for e6ample additio$ of a$ e6tra room etc& O$e ca$ avail of s#ch a loa$ facility of a home e6te$sio$ loa$. after o/tai$i$% the re)#isite approvals from the releva$t m#$icipal corporatio$& 7o$e -on.ersion %oans:/ This is availa/le for those *ho have fi$a$ced the prese$t home *ith a home loa$ a$d *ish to p#rchase a$d move to a$other home for *hich some e6tra f#$ds are re)#ired& Thro#%h a home co$versio$ loa$. the e6isti$% loa$ is tra$sferred to the $e* home i$cl#di$% the e6tra amo#$t re)#ired. elimi$ati$% the $eed for pre7payme$t of the previo#s loa$& Land "ur-hase %oans:/ This loa$ is availa/le for p#rchase of la$d for /oth home co$str#ctio$ or i$vestme$t p#rposes& Sta$" dut* %oans:/ This loa$ is sa$ctio$ed to pay the stamp d#ty amo#$t that $eeds to /e paid o$ the p#rchase of property& 3ridge %oans:/ +rid%e !oa$s are desi%$ed for people *ho *ish to sell the e6isti$% home a$d p#rchase a$other& The /rid%e loa$ helps fi$a$ce the $e* home. #$til a /#yer is fo#$d for the old home&

3a%an-e/ trans er %oans:/ +ala$ce Tra$sfer is the tra$sfer of the /ala$ce of a$ e6isti$% home loa$ that yo# availed at a hi%her rate of i$terest 3,OI4 to either the same H=> or a$other H=> at the c#rre$t ,OI a lo*er rate of i$terest&

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Re inan-e %oans:/ ,efi$a$ce loa$s are ta-e$ i$ case *he$ a loa$ for yo#r ho#se from a H=I at a partic#lar ,OI yo# have ta-e$ drops over the years a$d yo# sta$d to lose& I$ s#ch cases yo# may opt to s*ap yo#r loa$& This co#ld /e do$e from either the same H=I or a$other H=I at the c#rre$t rates of i$terest. *hich is lo*er& NRI ho$e %oans:/ This is tailored for the re)#ireme$ts of No$7,eside$t I$dia$s *ho *ish to /#ild or /#y a home or property i$ I$dia& The H=>s offer attractive ho#si$% fi$a$ce pla$s for N,I i$vestors *ith s#ita/le repayme$t optio$s& O$ *o#ld /e e$titled for home loa$s i$ the ra$%e of ,s ; la-h to a ma6im#m of ,s 1 crore. /ased o$ the repayme$t capacity. previo#s credit history a$d the cost of the property& The /a$- may provide a ma6im#m of @;H of the cost of the property or the cost of co$str#ctio$ as applica/le a$d C;H of the cost of la$d i$ case of p#rchase of la$d& The repayme$t capacity is calc#lated ta-i$% i$to acco#$t factors s#ch asI A%e I$comeJSalary R#alificatio$s Depe$da$tJ3s4 AssetsJ!ia/ilities >redit History Sta/ility J co$ti$#ity of yo#r employme$tJ/#si$ess I$come of co7applica$tJ3s4 Ta-i$% home loa$s these days has /ecome simpler& Fith the ,+I re%#larly /ri$% do*$ i$terest ratesG ta-i$% home loa$s have /ecome e6tremely easy& Ho#si$% loa$s *hich *ere 1B&;H to 1@H a fe* years a%o fell /y 11&;H to 15H& Fith i$terest rates %oi$% do*$. people i$creasi$%ly $#m/er apply to ta-e these loa$s& Some of the leadi$% /a$-s offeri$% home loa$s i$ I$dia. i$cl#di$% I>I>I +a$-. ID+I +a$-. HD=> +a$- State +a$-. +a$- of +aroda. 'ota- +a$-. S+I. Sta$dard >hartered +a$- a$d A6is +a$-& B&9D 7DFC 7o$e Loan:/ 7igh%ights:/

HD=> mar-ets its pare$t HD=>Ls home loa$ prod#cts& =i$a$ces #p to @;H of the cost of the property 3A%reeme$t val#e S Stamp d#ty S ,e%istratio$ char%es4& Home improveme$t loa$. *hich facilitates i$ter$al a$d e6ter$al repairs a$d other str#ct#ral improveme$ts li-e pai$ti$%. *aterproofi$%. pl#m/i$% a$d electric *or-s. tili$% a$d floori$%. %rills a$d al#mi$#m *i$do*s& =i$a$ces #p to @;H of the cost of re$ovatio$ 31??H for e6isti$% c#stomers4& Home e6te$sio$ loa$ for e6te$sio$ of a$ e6isti$% d*elli$% #$it #$der the same terms as applica/le to home loa$& !a$d P#rchase !oa$ to p#rchase la$d for co$str#cti$% ho#se& =i$a$ces #p to C?H of the cost of the la$d& ,epayme$t over a ma6im#m period of 1? years& ;B

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=i6ed ,ate. =loati$% ,ate a$d optio$s to str#ct#re loa$ as partly fi6ed or partly floati$%& =le6i/le repayme$t optio$s to s#it i$divid#al $eeds& I$s#ra$ce cover #$der Term Ass#ra$ce Pla$ Offer i$7ho#se scr#ti$y of property doc#me$ts&

E%igi+i%it*# / HD=> home loa$s are availa/le forI

P#rchase of flat. ro* ho#se. /#$%alo* from developers P#rchase of e6isti$% freehold properties P#rchase of properties i$ a$ e6isti$% or proposed co7operative ho#si$% society or apartme$t o*$erLs associatio$ P#rchase of first Po*er of Attor$ey p#rchases i$ Delhi for DDA flats allotted /efore 1DD2& >o$str#ctio$ of o*$ ho#se

HD=> home loa$s ca$ /e applied for either i$divid#ally or joi$tly& Proposed o*$ers of the property *ill have to /e co7applica$ts& Ho*ever. the co7applica$ts $eed $ot /e co7o*$ers& Ma6im#m te$#re is 2? years s#/ject to retireme$t a%e& Loan A$ount: / @;H of the cost of the property 3i$cl#di$% the cost of the la$d4 a$d /ased o$ the repayme$t capacity of the c#stomer& Rate o Interest I7 The c#rre$t applica/le fi6ed rate of i$terest i$ respect of the total loa$ approved is as follo*sI =or loa$s #p to ,s&2. ??.???I7

Ter$ o Loan HNo& o )earsI Up to ; B 7 1? 11 7 1; =or loa$s %reater tha$ ,s&2. ??.???

Rate 8er Annu$ HP"&aI 1?&?? 1?&C; 11&??

Ter$ o Loan HNo& o )earsI ;

Rate 8er Annu$ HP"&aI 1?&??

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1? 1;

11&?? 11&2;

All loa$s o$ a$$#al rest /asis& Yo# repay the loa$ i$ )#ated Mo$thly i$stalme$ts 3 MIs4 comprisi$% pri$cipal a$d i$ertest& MI per ,s 1. ??.??? 3for loa$ #p to ,s&2. ??.???4

Ter$ o Loan HNo& o )earsI ; 1? 1;

Ru"ees 21DD 19?1 11;D

MI per ,s&1. ??.??? 3for loa$ %reater tha$ ,s&2. ??.???4

Ter$ o Loan HNo& o )earsI ; 1? 1;

Ru"ees 21DD 191B 11C;

Pe$di$% fi$al dis/#rseme$t. yo# pay i$terest o$ the portio$ of the loa$ dis/#rsed& This i$terest is called pre7 MI i$terest&A$ early redemptio$ char%e of 2H of the amo#$t /ei$% prepaid is paya/le o$ repayme$t of a loa$ ahead of sched#le& Re"a*$ent 8eriod: / Re"a*$ent O"tions K Ste" U" Re"a*$ent Fa-i%it*# / helps yo#$%er /orro*ers to ta-e a m#ch /i%%er loa$ today /ased o$ a$ i$crease i$ their f#t#re i$come& F%e!i+%e Loan insta%%$ents 8%anI 7 Ofte$ c#stomers. pare$ts a$d their childre$ *ish to p#rchase properties to%ether& The pare$t is $eari$% retireme$t a$d their childre$ have j#st

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started *or-i$%& This optio$ helps s#ch c#stomers com/i$e the i$comes a$d ta-e a lo$% term home loa$ *here i$ the i$stalme$t red#ces #po$ retireme$t of the ear$i$% pare$t& Tran-he 3ased EMI / >#stomers p#rchasi$% a$ #$der co$str#ctio$ property $eed to pay i$terest 3o$ the loa$ amo#$t dra*$ /ased o$ level of co$str#ctio$4 till the property is ready& To help c#stomer save this i$terest. HD=> has i$trod#ced a special facility of Tra$che +ased MI& >#stomers ca$ fi6 the i$stallme$ts they *ish to pay till the time the property is ready for possessio$& The mi$im#m amo#$t paya/le is the i$terest o$ the loa$ amo#$t dra*$& A$ythi$% over a$d a/ove the i$terest paid /y the c#stomer %oes to*ards Pri$cipal repayme$t& The idea is c#stomer /e$efits /y starti$% MI a$d he$ce repays the loa$ faster& A--e%erated Re"a*$ent S-he$e provides /orro*er the opport#$ity to repay the loa$ faster /y i$creasi$% the MI& Fhe$ever the /orro*er %ets a$ i$creme$t. i$crease i$ disposa/le i$come or have l#mp s#m f#$ds for loa$ prepayme$t. they ca$ /e$efit /y savi$% of i$terest /eca#se of faster loa$ repayme$t& +orro*er ca$ /e$efit /yI I$crease i$ MI mea$s faster loa$ repayme$t Savi$% of i$terest /eca#se of faster loa$ repayme$t Yo# ca$ i$vest l#mp s#m f#$ds rather tha$ #se it for loa$ prepayme$t& The ret#r$ from the i$vestme$ts also %ives yo# the comfort of payi$% the i$creased MI&&& Do-u$ents ReAuired :/ Sa%aried Custo$ers Se% E$"%o*ed 8ro essiona%s Applicatio$ form *ith photo%raph !atest Salary7slip =orm 1B Applicatio$ form *ith photo%raph Se% E$"%o*ed 3usiness$an Applicatio$ form *ith photo%raph

d#catio$ R#alificatio$s >ertificate d#catio$ R#alificatio$s >ertificate a$d Proof of /#si$ess e6iste$ce a$d Proof of /#si$ess e6iste$ce !ast 5 years I$come Ta6 ret#r$s 3self a$d /#si$ess4 !ast 5 years Profit J!oss a$d +ala$ce Sheet +#si$ess profile !ast 5 years I$come Ta6 ret#r$s 3self a$d /#si$ess4 !ast 5 years Profit J!oss a$d +ala$ce Sheet !ast B mo$ths /a$- stateme$ts 3self a$d /#si$ess4 Processi$% fee che)#e

!ast B mo$ths /a$stateme$ts

Processi$% fee che)#e

!ast B mo$ths /a$- stateme$ts Processi$% fee che)#e

The >redit Appraisal is a$ importa$t step i$ sa$ctio$i$% loa$ applicatio$s &He$ce the >redit Appraiser $eeds to have certai$ importa$t doc#me$ts to comp#te the credit *orthi$ess of the applica$t &I$ the case of salaried perso$ these i$cl#de the follo*i$% I7 ;D

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9I SALAR) SLI8S H< MONT7S CURRENTI :/ The salary slip is #s#ally a pri$ted sheet of paper that co$tai$s 2 compo$e$ts In-o$e5Earnings -o%%u$n: / It co$tai$s a$ e6ha#stive list of the vario#s compo$e$ts that are added to the perso$s salary& They co$tai$ vario#s compo$e$ts li-e +asic pay. H,A etc& Dedu-tions :/ It co$tai$s a$ e6ha#stive list of vario#s compo$e$ts that are ded#cted from the perso$s ar$i$%s& They co$tai$ vario#s compo$e$ts li-e I$come ta6. Provide$t f#$d. mployee !oa$s etc& ;I 3ANK STATEMENTSH? MONT7S CURRENTI G7 The /a$- stateme$t co$tai$s the vario#s tra$sactio$s that the applica$t performs i$ his /a$- acco#$t& It has 5 compo$e$ts Date Des-ri"tions G7 It co$tai$s the /rief a$d sta$dardiAed descriptio$ of the activity or the acco#$t related to the tra$sactio$ & %& >leari$% che)#e 1BB12D. Tra$sfer deposit& De"osits: / It co$tai$s the amo#$ts that *ere credited to the acco#$t Withdra0a% #/ It co$tai$s the amo#$ts that *ere de/ited to the acco#$t& This is caref#lly st#died to fi$d o#t a/o#t a$y re%#lar *ithdra*als or a series of chec-s so that a$y e6isti$% loa$s may /e revealed a$d there ca$ /e a correct estimate of the repayme$t capacity& 3a%an-e :/ It sho*s effect of tra$sactio$ o$ the pre e6isti$% acco#$t /ala$ce S"e-ia% eature :/ HD=> *ill $ot co$sider a$y loa$ s *ith o#t sta$di$% MI of or /elo* B mo$ths&

<4 FORM 9? :/ It is form %ive$ /y mployer *hich states the i$come ear$ed from that compa$y d#ri$% the f#ll fi$a$cial year .a$d %ives the details of Ta6 ded#cted at so#rce& 94 CO8) OF INCOME TA' RETURNHSARALI :/ The SA,A! ta6 ret#r$ form reveals the str#ct#re of i$comes a$dJor the vario#s ear$i$%s of the ta6 ret#r$ee &It also sho*s the vario#s ded#ctio$s that *ill $ot /e i$cl#ded a$d it also co$tai$s the ,e/ates o$ *hich he ear$s ta6 /e$efit& ;4 RESIDENCE 8ROOF I7 The reside$ce proof i$cl#des the lectricity /ill. Telepho$e /ill. ,atio$ >ard .Passport& B4 87OTO ID 8ROOF I7 The photo proof i$cl#des the Pa$card .Koter ID card. mployee ID card. Passport etc& C4 AGE 8ROOF: / The a%e proof i$cl#des the Pa$ card. Passport. Photo ID&

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@4 LOAN A88LICATION FORM DUL) FILLED I7 It ca$ also /e do*$loaded from HD=>s #ser frie$dly *e/ /ased portal&

D4 C7ARGES FOR 8ROCESSING FEES :/ This is a sta$dard a$d $omi$al fees to /e paid at the time of applyi$% for loa$ =ees str#ct#re& ?&;H of loa$ amo#$t SService ta6 of 12H 3!ess4 d#catio$ !ess of 5H

O, ;B1@J7 HD=> ta-es from applica$t *hichever is less& This is applica/le time to time& 1?4 PHOTO>OPI S O= P,OP ,TY PAP ,S& NON RESIDENT INDIAN SALARIED5EM8LO)ED# / A$ N,I is a perso$ *ith I$dia$ citiAe$ship /#t residi$% i$ a$other co#$try& A$ N,I ca$ ta-e a ho#si$% loa$ from HD=>& He is ho*ever $ot eli%i/le for a Top Up loa$s.Home )#ity !oa$s.No$ ,eside$tial Premises !oa$s &He is ho*ever eli%i/le for Home Improveme$t a$d Home 6te$sio$ !oa$s from HD=> & A$ N,I !oa$ is appraised o$ the Net Salary& This is the ta-e home pay pac-a%e o/tai$ed after red#ci$% the ded#ctio$s from the ear$i$%s &As this salary is lo* it red#ces their loa$ eli%i/ility &Ho*ever the salary is co$verted i$to I$dia$ >#rre$cy for comp#ti$% credit *orthi$ess&The fi%#re o/tai$ed is hi%her i$ I$dia$ c#rre$cy he$ce the loa$ eli%i/ility rises& % ;.9@CT america$ dollars *ill mea$ 2.9B.D1; ,#pees& SELF EM8LO)ED 8ROFESSIONALS I7 A$ N,I applica$t ca$ also /e a Doctor. $%i$eer etc&I$ these cases HD=> *ill p#t them i$ the special cate%ory of Self mployed Professio$als& Their credit appraisal is carried o#t as follo*sI7 Their latest availa/le Profit a$d !oss AJc is revie*ed /y the credit appraiser& This acco#$t has t*o sides a Profit side *hich reveals all ear$i$%s a$d %ai$s &There is also a !oss side *hich sho*s all ta6es. lia/ilities a$d losses& Fe refer to the Profit side a the (ross ,eceipts&These i$cl#des compo$e$ts reveali$% the $at#re a$d amo#$t of the Prime i$come a$d other ear$i$%s % >o$s#ltatio$ fees i$ case of Doctor & =rom the (ross ,eceipts *e calc#late the (ross Profits a$d thereo$ move to calc#late !oa$ eli%i/ility &Fhich is the loa$ amo#$t that ca$ /e co$ve$ie$tly sa$ctio$ed to the applica$t& !oa$ li%i/ility U (ross Profit V 2

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A$other importa$t co$sideratio$ is that the A$$#al o#tflo* of MIs sho#ld $ot e6ceed the N T P,O=IT& The Net Profit is comp#ted /y ded#cti$% the vario#s costs a$d losses from the (ross profit& SOURCES OF LOAN A88LICANTS 9I WALK IN :/ This refers to the Applica$ts *ho apply for the loa$ /y %oi$% to the service ce$tre or re%io$al /ra$ch office &They may have come to -$o* a/o#t HD=> s home loa$ service from a$y so#rce /#t this is their first co$tact *ith HD=> is i$ a/se$ce of a$y i$termediary li-e frie$ds. sales me$ etc&The applica$ts *ho co$tact thro#%h or /y the Fe/site are also i$cl#ded i$ the *al- i$ cate%ory& Fal-7I$ applica$ts are %ive$ co$cessio$s o$ fees a$d char%es *hich is applica/le from time to time& ;I CALLCENTRE LEADSI 7 The callce$tre leads refer to the applica$ts that come i$ co$tact *ith HD=> thro#%h HD=> +a$- or thro#%h H!SI! &HD=> /a$- is the /a$-i$% sectio$ of HD=> *hich i$forms HD=> !td a/o#t perso$s *ho it thi$-s to $eedi$% a loa$ &H!SI! *hich has /ee$ started /y HD=> !td a$d refers to Ho#si$% !oa$ Services I$dia !imited& This or%a$iAatio$ has /ee$ especially started /y HD=> to assist perso$s searchi$% for home loa$s at easy rates a$d %ood service&H!SI! co$tacts pro/a/le $eedf#ls of home loa$. co$tacts them. e6plai$s them the vario#s adva$ta%es of a$ HD=> home loa$ a$d %et their loa$ applicatio$ filled& very HD=> service ce$tre has its o*$ team *hich is ma$a%ed /y leader *ho reports diectly to the +ra$ch Ma$a%er &I$ the I$dia ha/itat ce$tre the H!SI! team is #$der the leadership of a team leader *ho reports directly to Mr& Prasha$t Mali-3+ra$ch M%rIH> J,a$-ed 2$d i$ the presti%io#s Natio$al >orporate >halle$%e 2??; co$d#cted a$$#ally /y HD=> 4 <I DSAs and 3SAsG 7 These are respectively the Direct selli$% a%e$ts a$d the +#si$ess selli$% a%e$ts&the DSAs refer to or%a$iAatio$s *hich *or- i$ a%reeme$t *ith HD=> a$d for*ards them the loa$ re)#ests of applica$ts they co$tact or those that co$tact them o$ the other ha$d +SAs #s#ally for*ard loa$ re)#ests a$d assist HD=> /y for*ardi$% them the $ames addresses co$tact $os etc of vario#s pro/a/le $eedf#ls of home loa$s +SAs #s#ally are +#ilders *ho /oo- ho#ses for sale i$ the f#t#re& they may also i$cl#de +ro-ers& %s for DSAs are Nish-.>hatrath.+'M&etc De"osits: Indi.idua%s: 7 these areI7 =i6ed ,ate Deposits Karia/le ,ate Deposits HD=> has i$stit#ted *ell7defi$ed service sta$dards for /oth depositors a$d deposit a%e$ts& HD=> has /ee$ a/le to mo/ilise deposits from over 1? lac depositors& O#tsta$di$% deposits %re* from ,s& 1.9;@ crores i$ March 1DD9 to 1D.5;D crores i$ March 2??D& M#ch of this s#ccess ca$ /e attri/#ted to its stro$% /ra$d ima%e. s#perior services. sec#rity a$d a/ove all. the si%$ifica$t co$tri/#tio$ made /y HD=>Ls deposit a%e$ts& HD=> has over 1;.??? deposit a%e$ts a$d distri/#tes all its retail savi$%s 3deposit4 prod#cts primarily thro#%h this cha$$el& B2

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HD=> has /ee$ a*arded AAA" rati$% for its deposits from /oth >,ISI! a$d I>,A for the FOURTEENT7 co$sec#tive year. represe$ti$% hi%hest safety as re%ards timely payme$t of pri$cipal a$d i$terest& The pro/lem of Ne%ative AmortiAatio$ is specific to the Adj#sta/le or the Karia/le rate loa$s that are le$t to c#stomers& I$ the case of Karia/le rate home loa$s there are three compo$e$tsI7 ,P!, E 19H 3>U,, NT4 SP, AD E 5H 3>U,, NT4 ,OI7 11H The term ,P!, is short for ,etail Prime !e$di$% ,ate& this rate is depe$de$t o$ mar-et forces &I$ I$dia the ,P!, has /ee$ o/servi$% a$ #p*ard tre$d &As a res#lt of this there is a cha$%e i$ rate of i$terest to /e applied to differe$t loa$s&,P!, is revised every 5 mo$ths I$ *hich it may or may $ot cha$%e& Spread refers to a special disco#$t offered to loa$ applica$ts comi$% to HD=>&this disco#$t is fi6ed /y HD=> & very loa$ applica$t is eli%i/le to receive this disco#$t from HD=> !td&It helps create a mar-et adva$ta%e a$d /e$efits the Applica$ts&Spread is fi6ed for a$ #$certai$ le$%th of time &It is a/sol#tely depe$de$t o$ the compa$ys discretio$ to cha$%e it or $ot& >#rre$tly HD=> is offeri$% 2&;H spread o$ a loa$ of a/ove 2? lacs a$d 5H spread o$ a loa$ of /elo* 2? lacs& ,OI is the rate of i$terest that is applica/le to the loa$ at the time of le$di$%& It is comp#ted /y s#/tracti$% spread disco#$t from the ,P!,& at the time of le$di$% the ,OI is %ood e$o#%h to repay the i$terest as *ell as the pri$cipal compo$e$ts &Ho*ever as the ,P!, i$creases as it is /o#$d to do so after some time the re)#ired MI also i$creases &He$ce after some time the MI /ecomes i$s#fficie$t to repay the pri$cipal as *ell as the i$terest compo$e$t &

STAGES OF 7OME LOAN Applicatio$ M#$ir-a HU+ !o%i$ Sca$$i$%

Data $try

Dis/#rseme$t of loa$ The Loan

=i6ed char%es

Do#/le>hec-i$% Over3D>OK,4

,ecomme$datio$ Over3,OK,4

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The represe$tatio$ sho*$ a/ove is $ot a perfect copy of the act#al process& This is /eca#se these sta%es are ta-i$% place sim#lta$eo#sly a$d o$e applicatio$ is /ei$% ta-e$ care for /y the e6perie$ced employees of /oth HD=> !td service ce$tre a$d HD=> !td HU+ 3also called the /ac- e$d office4&Also the applica$t may /e as-ed to se$d i$formatio$ or may /e as-ed )#estio$s re%ardi$% his re)#ireme$t a$dJor his doc#me$ts for his o*$ co$ve$ie$ce He$ce the loa$ applicatio$ may or may $ot sh#ttle thro#%h differe$t sta%es& A88LICATION STAGE I7 This is the sta%e *here the Applicatio$ =orm first reaches the co$cer$ed Service >e$tre Here all the doc#me$ts i$ the applicatio$ are revie*ed /y the e6perie$ced staff prese$t at the service ce$tre The HD=> !td employee *ho revie*s the file chec-s to see *hether all doc#me$ts are prese$t a$d i$ their proper place &He chec-s if the doc#me$ts are d#ly filled.$ot fa-e.attested /y a#thority i$ )#estio$ a$d prese$t i$ order&I$ case a$y doc#me$t is missi$% the applica$t is co$tacted electro$ically or /y mail &The applica$t is co$tacted /y telepho$e a$d re)#ested for the doc#me$t #$til he de$ies it /ei$% *ith him& This e6ercise is called =O!!OF UP& the credit appraisal of the loa$ applicatio$ starts at this sta%e& The service ce$tre employees comp#te the %ross salary. II,. =OI,. !oa$ li%i/ility ratio etc&The credit *orthi$ess of the applica$t is calc#lated here& It is also at this sta%e that the RUI>' DATA NT,Y of the loa$ applicatio$ is do$e to create a serial $o& of the applicatio$& after that a$other pa%e appears a$d more data is e$tered &It is $o* that a special a$d #$i)#e !OAN AJ> NO& is created #$der *hich all the loa$ processes *ill /e carried o#t& The $#m/er that has /ee$ %e$erated is comm#$icated to the applica$t /y mea$s of a letter a$dJor electro$ic comm#$icatio$ the system of electro$ically recordi$% the data helps to create ready refere$ce. a proof .helps i$ )#ic- a$d easy processi$% of the data& It also helps to very easily a$d )#ic-ly share data *ith other employees of HD=>& The $e6t a$d importa$t processi$% performed at the service ce$tre is that of filli$% #p a doc#me$t -$o*$ as the INT ,KI F SH T& for processi$% i$divid#al loa$s 3salaried cases4 &It co$tai$s vario#s simple e$tries li-e I7 1& Name of /orro*er 2& Name of co7/orro*er 5& I$come detailsI7=amily /ac-%ro#$d a$d perma$e$t address etc& It also co$tai$s vario#s importa$t e$tries li-e& ;& (ross Salary B& ,e$tal C& Other i$comes @& O/li%atio$sI 7 The vario#s other loa$s that the applica$t is e$titled to pay .their amo#$t. their remai$i$% terms .so#rce etc& D& ,emar-sG7 This coll#m$ co$tai$s the vario#s fi$di$%s that the employee has fo#$d o#t after thoro#%h revie* of the applica$ts doc#me$ts s#ch as /a$- stateme$t. salary slip etc& He$ce the i$tervie* sheet co$tai$s the importa$t fi$di$%s *hich the employee has collected after caref#l revie* of the vario#s doc#me$ts &The i$tervie* sheet helps to c#t

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cor$ers a$d helps save time /y $ot havi$% other employees to %o thro#%h the doc#me$ts a%ai$ a$d a%ai$ &It he$ce acts as a so#ce of )#ic- refere$ce& After all this has /ee$ performed *ell e$o#%h the loa$ applicatio$ *ill /e arra$%ed i$ a file a$d all it *ill /e %ive$ its loa$ aJc $o *hich also acts as its file $o& the file is $o* ready to /e se$t to the HU+ *here f#rther processi$% *ill ta-e place& SCANNING: / I$ this sta%e the vario#s importa$t doc#me$ts of the applica$t are sca$$ed& this helps to create their electro$ic copy *hich acts as a ready refere$ce. a proof. a$d ca$ also /e shared a$d #tiliAed /y other employees of HD=> !td& DATA ENTR) I7 The file has /ee$ se$t to the /ac- e$d office or the HU+ &At HU+ there are ma$y e6perts *ith their o*$ specialiAatio$s & these officials revie* the vario#s parts of the filae a%ai$ a$d perform ma$y specialiAed tas-s Data e$try is also o$e of these tas-s &this e$try is m#ch more differe$t a$d comple6 as compared to the earlier performed R#ic- Data $try& A$ e6ha#stive amo#$t a$d type of i$formatio$ has to /e e$tered i$to the I!PS system ra$%i$% from Perso$al Details. mployme$t Details to Property ,ate History a$d >#stomer I$teractio$s& RECOMMENDATION O(ER HRO(RI I7 The ,ecomme$datio$ OK , is also reffered to as the =irst Appraisal at this sta%e certai$ specially appoi$ted perso$s have /ee$ %ive$ the respo$si/ility of recomme$di$% a loa$& These people have to ta-e special care of revie*i$% every doc#me$t. a$d all the small details that $eed to /e co$sidered /efore co$sideri$% the loa$ applicatio$ to /e valid& After this the file is se$t to a$other specially appoi$ted perso$ as e6plai$ed /elo*& At this sta%e if a$y correctio$ or mista-e is prese$t it ca$ /e se$t /ac- to the Service >e$tre& DOU3LE C7ECKING O(ER I7 As the $ame s#%%ests at this sta%e a specially appoi$ted perso$ *ill do#/le chec- all the past proceedi$%s &He *ill e6ami$e the !oa$ file for a$y discrepa$cies .a$y missi$% a$d Jor misplaced doc#me$ts.the >redit Appraisal res#lts.etc&this is a very importa$t sta%e a$d m#st /e ha$dled *ith e6ceptio$al care& This is /eca#se a mista-e at this sta%e ca$ ca#se a %reat loss to the compa$y&The Do#/le chec-er is respo$si/le for the #ltimate sa$ctio$i$% of the loa$ &If a$y mista-e is do$e at this sta%e there is $o %oi$% /ac- a$d he$ce $o protectio$&HD=> ta-es %reat care *hile appoi$ti$% do#/le chec-ers &They sho#ld have completed a select $#m/er of years *ith the compa$y a$d sho#ld have sho*$ e6emplary performa$ce a$d m#st posses e6perie$ce& SANCTIONING :/ A$ a#thoriAed sa$ctio$i$% a#thority *ithi$ HD=> itself *ill revie* the remar-s of Do#/le >hec-er a$d Sa$ctio$i$% a#thority &If it co$siders the loa$ s#ita/le to /e Sa$ctio$ed it %ives its approval &After it has %ive$ its approval stamp the I!PS system *ill a#tomatically se$d a letter to the Applica$t that his loa$ has /ee$ sa$ctio$ed& After this approval the Applica$t ca$ %o to *hichever Service >e$tre *hich he selects to %et his loa$ dis/#rsed& S8ECIAL CASE :/ A special case ca$ arise if the applica$t has $ot me$tio$ed the property for *hich he *a$ts to ta-e a loa$ &I$ that case the applica$t ca$ let the case /e

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remai$ pe$di$% & this mea$s that the Applica$ts loa$ re)#est *ill /e co$sidered to /e complete eve$ tho#%h he has $ot decided the property& Ho*ever the Applica$t is e6pected to fi$alise the property i$ a short time& A Property Address is $ecessary to 1& %et the loa$ dis/#rsed 2& Process the !e%al a$d Tech$ical Appraisal of the property a$d its Papers&

DIS3URSEMENT: / The last a$d fi$al sta%e i$ the Home !oa$ process is that of dis/#rseme$t& after the sa$ctio$i$% has ta-e$ place the applica$t /ecomes a re%istered c#stomer of HD=> !td & He ca$ $o* ta-e the dis/#rseme$t of the loa$ from a$y of the vario#s service ce$tre of HD=> &The loa$ shall /e dis/#rsed i$ o$e !#mp s#m or i$ s#ita/le i$stallme$ts to /e decided /y HD=> *ith refere$ce to the $eed a$dJor pro%ress of co$str#ctio$ 3*hich decisio$ shall /e fi$al a$d /i$di$% o$ the /orro*er4&The /orro*er here/y ac-$o*led%es the receipt of the loa$ dis/#rsed as i$dicated i$ the receipt&

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C7A8TER/?

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C7A8TER/? COM8AN) 8ROFILE OF 7DFC 7OSING DE(ELO8MENT FINANCE COR8ORATION LTD INTRODUCTIONI7
7ousing De.e%o"$ent Finan-e Cor"oration Li$ited . fo#$ded 1DCC /y ,avi Ma#rya a$d Hasm#-h/hai Pare-h. is a$ I$dia$ N+=>. foc#si$% o$ home mort%a%es& HD=>Ls distri/#tio$ $et*or- spa$s 295 o#tlets that i$cl#de 9D offices of HD=>Ls distri/#tio$ compa$y. HD=> Sales Private !imited& I$ additio$. HD=> covers over D? locatio$s thro#%h its o#treach pro%rammes& HD=>Ls mar-eti$% efforts co$ti$#e to /e co$ce$trated o$ developi$% a stro$%er distri/#tio$ $et*or-& Home loa$s are also Sharc-et thro#%h HD=> Sales. HD=> +a$- !imited a$d other third party Direct Selli$% A%e$ts 3DSA4& HD=> I$corporated i$ 1DCC *ith a share capital of ,s 1? >rores. HD=> has si$ce emer%ed as the lar%est reside$tial mort%a%e fi$a$ce i$stit#tio$ i$ the co#$try& The corporatio$ has had a series of share iss#es raisi$% its capital to ,s& 11D >rores& The %ross premi#m i$come for the year e$di$% March 51. 2??C stood at ,s& 2.@;B >rores a$d $e* /#si$ess premi#m i$come at ,s& 1.B29 >rores& The compa$y has covered over @.CC.??? lives year e$di$% March 51. 2??C& HD=> operates thro#%h almost 9;? locatio$s thro#%ho#t the co#$try *ith its corporate head )#arters i$ M#m/ai. I$dia& HD=> also has a$ I$ter$atio$al Office i$ D#/ai. UA *ith service associates i$ '#*ait. Oma$ a$d Ratar& HD=> is the lar%est ho#si$% compa$y i$ I$dia for the last 2C years& SNA8S7OT/I I$corporated i$ 1DCC as the first specialiAed Mort%a%e >ompa$y i$ I$dia& Almost D?H of i$itial shareholdi$% i$ the ha$ds of domestic i$stit#tes a$d retail i$vestors& >#rre$t CCH of shares held /y forei%$ i$stit#tio$al i$vestors& B@

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+esides the core /#si$ess of mort%a%e HD=> has evolved i$to a fi$a$cial co$%lomerate *ith holdi$%s I$I

C7ART:/ ?&9

7DFC LTD

@;&;?P 7DFC STANDARD LIFE

?DP 7DFC ASSET MANAGEMENT

;<&;?P 7DFC 3ANK Hinclusive

HD=> Sta$dard !ife i$s#ra$ce >ompa$y7 HD=> holds C2&2B H& HD=> Asset Ma$a%eme$t >ompa$y E HD=> holds B?H HD=> +a$-7 HD=> holds 25&2BH& I$tele$et (lo/al 3+#si$ess Process O#tso#rci$%4 E HD=> holds ;?H& HD=> >h#// (e$eral I$s#ra$ce >ompa$y E HD=> holds C9H&

BD

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SNA8S7OT/II !oa$ Approvals 3Up to Dec 2??C4 !oa$ Dis/#rseme$ts 3Up to Dec& 2??C4 Ho#si$% U$its fi$a$ced Distri/#tio$ Offices O#treach Pro%rams 1@1 D? ,s& @?; /illio$& 3US T 1@&5? /$&4 ,s&BBD /illio$ 3US T 1;&2? /$4 2&; millio$&

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7DFC Li$ited

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T*"e Founded 7eadAuarters Ke* "eo"%e Industr* Re.enue E$"%o*ees We+site

P#/lic 3+S I ;???1?4 1DCC M#m/ai.I$dia ,avi Ma#rya Hasm#-h/hai Pare-h Ho#si$% =i$a$ce UST 1&9D /illio$ 32??@4 1.?2D ***&hdfc&com :/

KE) E'ECUTI(E 7DFC 7OUSING DE(ELO8MENT FINANCE COR8 LTD

Mr& Dee"a1 S 8are1h: / serves as 6ec#tive >hairma$ a$d >hief 6ec#tive Officer of the +oard of Ho#si$% Developme$t =i$a$ce >orp& !td&. 3HD=>4& He joi$ed HD=> !imited i$ a se$ior ma$a%eme$t positio$ i$ 1DC@& He *as i$d#cted as a *hole7time director of HD=> !imited i$ 1D@; a$d *as appoi$ted as its 6ec#tive >hairma$ i$ 1DD5& He is the >hief 6ec#tive Officer of HD=> !imited& Mr& Pare-h is a =ello* of the I$stit#te of >hartered Acco#$ta$ts 3 $%la$d 8 Fales4& Mr& K&$ $istr*: / The Ma$a%i$% Director of the >orporatio$& He has /ee$ employed *ith the >orporatio$ si$ce 1D@1 a$d *as the e6ec#tive director of the >orporatio$ si$ce 1DD5& He *as appoi$ted as the dep#ty ma$a%i$% director i$ 1DDD a$d the Ma$a%i$% Director i$ 2???& He is also a mem/er of the I$vestors: (rieva$ce >ommittee of Directors& Ms& Renu S& Karnad: / The 6ec#tive Director of the >orporatio$& She has /ee$ employed *ith the >orporatio$ si$ce 1DC@ a$d *as appoi$ted as the 6ec#tive Director of the >orporatio$ i$ 2???& She is respo$si/le for overseei$% all aspects of le$di$% operatio$s of HD=>&Ne* Delhi& 3OARD OF DIRECTORS:/ Mr& D S Pare-h 7 >hairma$ Mr& 'esh#/ Mahi$dra 7 Kice >hairma$ Mr& D N (hosh Dr& S A Dave

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Ms& ,e$# S& 'ar$ad 7 6ec#tive Director Mr& ' M Mistry 7 Ma$a%i$% Director Mr& Shirish + Patel Mr& + S Mehta

Mr& S Ke$-itarama$a$ Dr& ,am S Tar$eja Mr& N M M#$jee Mr& D M Sat*ale-ar

GROU8 COM8ANIES:/ HD=> +a$-I Forld >lass I$dia$ +a$-7 amo$% the top private /a$-s i$ I$dia& HD=> AM>I O$e of the top 5 AM>s i$ I$dia7 Preferred i$vestme$t ma$a%er& I$tele$et (lo/alI +PO services for i$ter$atio$al c#stomers& >I+I!I >redit I$formatio$ +#rea# I$dia !imited& HD=> >h#//I Upcomi$% Private compa$ies i$ the field of (e$eral I$s#ra$ce& HD=> M#t#al =#$d HD=> reality&comI Helps to search properties i$ all major cities i$ I$dia HD=> sec#rities HD=> Sta$dard !ife I$s#ra$ce >ompa$y !td A#%. 2??? >OINT (ENTURE

HD=> Sta$dard !ife I$s#ra$ce >ompa$y !imited *as o$e of the first compa$ies to /e %ra$ted lice$se /y the I,DA to operate i$ life i$s#ra$ce sector& ,each of the 0K player is hi%hly rated a$d /ee$ co$ferred *ith ma$y a*ards& HD=> is rated MAAA: /y /oth >,ISI! a$d I>,A& Similarly. Sta$dard !ife is rated MAAA: /oth /y Moody:s a$d

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Sta$dard a$d Poor:s& These reflect the efficie$cy *ith *hich HD=> a$d Sta$dard !ife ma$a%e their asset /ase of ,s& 1;.??? >r a$d ,s& B??.??? >r& respectively& HD=> Sta$dard !ife I$s#ra$ce >ompa$y !td *as i$corporated o$ 19th A#%#st 2???& HD=> is the majority sta-eholder i$ the i$s#ra$ce 0K *ith @1&9H staple a$d Sta$dard of as a staple 1@&BH Mr& Deepa- Sat*ale-ar is the MD a$d > O of the ve$t#re& HD=> Sta$dard !ife I$s#ra$ce >ompa$y !td& Is o$e of I$dia:s leadi$% Private !ife I$s#ra$ce >ompa$ies. *hich offers a ra$%e of i$divid#al a$d %ro#p i$s#ra$ce sol#tio$s& It is a joi$t ve$t#re /et*ee$ Ho#si$% Developme$t =i$a$ce >orporatio$ !imited 3HD=> !td&4 I$dia:s leadi$% ho#si$% fi$a$ce i$stit#tio$ a$d the Sta$dard !ife Ass#ra$ce >ompa$y. a leadi$% provider of fi$a$cial services from the U$ited 'i$%dom& +oth the promoters are *ill -$o*$ for their ethical deali$%s a$d fi$a$cial stre$%th a$d are th#s committed to /ei$% a lo$%7term player i$ the life i$s#ra$ce i$d#stry7 all importa$t factors to co$sider *he$ choosi$% yo#r i$s#rer& 3usiness Gro0th:/ The compa$y comma$ds a mar-et share of over B?H i$ the ho#si$% fi$a$ce sector& !evera%i$% o$ its /ra$d e)#ity HD=> has also e$tered the I$dia$ M#t#al =#$d sce$e )#ite rece$tly& HD=> *as the o$ly applica$t to /e %ive$ cleara$ce /y the %over$me$t. to e$ter the ,s 2;? /$ life i$s#ra$ce /#si$ess& This i$ itself spea-s vol#mes a/o#t the ma$a%eme$t:s professio$al rep#tatio$& =i$a$cial year 2??? proved to /e a /oo$ for ho#si$% fi$a$ce compa$ies. as the ta6 /e$efits a$$o#$ced i$ the /#d%et. co#pled *ith the lo* real estate prices a$d risi$% disposa/le i$comes. sp#rred ho#si$% dema$d& As a res#lt. dema$d for ho#si$% fi$a$ce too has re%istered hi%h rates of %ro*th& The ho#si$% sector has $o* /ee$ reco%$iAed as a$ e$%i$e of eco$omic %ro*th a$d HD=> is *ell placed to capitalise o$ this s#r%e i$ dema$d& A%ai$st this /ac-drop. HD=> lo%%ed i$ a$ e6celle$t performa$ce& The compa$y:s approvals a$d dis/#rseme$ts d#ri$% the first half of fi$a$cial year 2??1 *it$essed a year o$ year %ro*th of 55H a$d 52H respectively& The ro/#st %ro*th i$ itself is a co$cl#sio$ that HD=>:s /#si$ess is far less s#scepti/le to a$y eco$omy do*$t#r$& HTA3LE:/?&;I Finan-ia% Sna"shot Gro0th ratios Operati$% i$come Other i$come Net profits F)FC 15&CH F)FF 21&BH F)DD 1;&2H 97F)D9 21&1H 59B&@H 1D&@H

551&CH 729&BH 7;9&?H 1@&5H 15&@H 2?&9H

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Approvals Dis/#rseme$ts

2@&DH 51&1H

2;&2H 29&9H

5?&5H 51&2H

55&9H 51&;H

H cha$%e compared to correspo$di$% previo#s period The e$try of $e* players has $ot i$ a$y *ay si%$ifica$tly red#ced HD=>:s domi$atio$ i$ terms of vol#me& Ho*ever. the i$creased competitio$ has led to a decli$e i$ i$terest spread 3the differe$ce /et*ee$ i$terest i$come ear$ed a$d i$terest paid4& Over the last co#ple of years HD=>:s spread has shr#$- from 2&1H i$ fi$a$cial year 1DDC to 1&@H i$ fi$a$cial year 2???& Fhe$ it comes to co$tai$i$% ris-. the compa$y:s trac- record is amo$% the /est i$ the fi$a$cial sector& D#ri$% the fi$a$cial year 2???. HD=> has red#ced the )#a$t#m of loa$s *here payme$t *as i$ arrears to j#st ?&DH of its portfolio& This is /eca#se i$divid#als acco#$t for $early C?H of its total o#tsta$di$% loa$s& The hi%h level of a$ i$divid#al i$vestor:s perso$al co$tri/#tio$ i$ a ho#se ma-es the possi/ility of defa#lt less li-ely& I$ -eepi$% *ith its traditio$ of playi$% safe. HD=> is diversifyi$% its /#si$ess& The compa$y has chose$ the ac)#isitio$ ro#te to i$crease its assets a$d c#stomer /ase i$ its core /#si$ess of ho#si$% fi$a$ce& Its rece$t ac)#isitio$ of Home Tr#st Ho#si$% =i$a$ce a$d (r#h =i$a$ce *ill $ot o$ly i$crease its siAe /#t *ill also /ri$% the eco$omies of scale& Apart from these traditio$al methods of %ro*i$%. HD=> is also levera%i$% the I$ter$et to co$solidate its /#si$ess& It has pic-ed #p a sta-e i$ vario#s portals& These are p#re i$vestme$ts to dra* sy$er%ies for its e6isti$% /#si$esses& Its proposed ve$t#re *ith T>S for setti$% #p call ce$tres ca$ pote$tially provide HD=> *ith stro$% reve$#e streams& The ve$t#re is aimed at cor$eri$% a share of T1? /$ IT 3i$formatio$ tech$olo%y4 e$a/led services mar-et *here I$dia has a si%$ifica$t cost adva$ta%e& Fhile its i$vestme$ts i$ $e* /#si$ess may $ot yield immediate ret#r$s. they are li-ely to e$ha$ce HD=>:s ret#r$s o$ e)#ity over the medi#m term& It *ill also help i$ e6pa$di$% its c#stomer /ase a$d provide more crede$ce to its cross7selli$% efforts& HD=> derives a$ ed%e i$ all its forays /eca#se of its *ide reachi$% mar-eti$% a$d distri/#tio$ $et*or- 3over 99.??? a%e$ts4& O$ce it has the e$tire ra$%e of prod#cts 3post i$s#ra$ce4. the compa$y has pla$s to e$ter i$to distri/#tio$ of fi$a$cial prod#cts /y levera%i$% its o*$ as *ell as the $et*or- of HD=> +a$-& The compa$y ca$ levera%e its e6isti$% cha$$els to provide the prod#cts a$d services i$ the areas of I$fotech services. asset ma$a%eme$t. life i$s#ra$ce a$d commercial /a$-i$%& This over a lo$%er time frame ca$ emer%e as a major so#rce of reve$#e for the compa$y& The compa$y:s proactivity a$d /ra$d $ame. has al*ays accorded it premi#m val#atio$s o$ the /o#rses& +#t the evide$ce of i$creasi$% competitio$ 3from S+I a$d I>I>I4 may lead to slo* do*$ i$ its %ro*th. i$ t#r$ affecti$% its c#rre$t val#atio$s& Nevertheless. if its i$vestme$ts i$ $e* ve$t#res li-e call ce$tres. m#t#al f#$ds. i$s#ra$ce a$d I$ter$et i$itiatives clic-. the$ HD=> loo-s set for hi%her %ro*th a$d he$ce. val#atio$s& Also o$e sho#ld $ot i%$ore the val#e of its 2CH sta-e i$ HD=> +a$- 3I$dia:s No& 1 private sector /a$-4. *hich *ill pay rich divide$ds to the compa$y&

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The $ear term co$cer$s ho*ever. are ce$tered o$ its diversificatio$s& It is $ot easy for the compa$y to domi$ate its other $e* /#si$esses. as it has do$e i$ ho#si$% fi$a$ce& Fith its e$try i$to the i$s#ra$ce sector i$ associatio$ *ith Sta$dard !ife of the U'. the %ro*th from other i$come may slo*do*$. as the i$s#ra$ce /#si$ess re)#ires lo$% %estatio$ period a$d lar%e i$vestme$ts& !o*er tha$ a$ticipated ret#r$s co#ld also *orry its i$vestors& GRA87:/?&<

3USINESS O3>ECTI(ES:/ The primary o/jective of HD=> is to e$ha$ce reside$tial ho#si$% stoc- i$ the co#$try thro#%h the provisio$ of ho#si$% fi$a$ce i$ a systematic a$d professio$al ma$$er. a$d to promote home o*$ership& A$other o/jective is to i$crease the flo* of reso#rces to the ho#si$% sector /y i$te%rati$% the ho#si$% fi$a$ce sector *ith the overall domestic fi$a$cial mar-ets& ORGANISATIONAL GOALS:/ HD=>Ls mai$ %oals are to I7 a4 develop close relatio$ships *ith i$divid#al ho#seholds. /4 mai$tai$ its positio$ as the premier ho#si$% fi$a$ce i$stit#tio$ i$ the co#$try. c4 tra$sform ideas i$to via/le a$d creative sol#tio$s. d4 provide co$siste$tly hi%h ret#r$s to shareholders. a$d e4 to %ro* thro#%h diversificatio$ /y levera%i$% off e6isti$% clie$t /ase& I$ additio$ to home /#ildi$% loa$s. HD=> also offers home e6te$sio$. home improveme$t a$d home co$versio$ loa$s& It also helps to ide$tify a$d val#e properties& HD=> also offers depository services i$ form of term deposits&

T*"es o 8rodu-ts o ered

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HD=> provide loa$s to meet all yo#r re)#ireme$ts for yo# to ma-e that ho#se a home& 7o$e I$"ro.e$ent Loan 7o$e E!tension Loan Loans to "ro essiona%s or o i-e or -%ini-& 7o$e EAuit* Loans HLoan Against 8ro"ert*I Loan against Rent re-ei.a+%es Short Ter$ 3ridging Loan& Loans to "ro essiona%s or non/residentia%s "re$ises %oan

Ke* Asso-iates and Su+sidiaries: / These areI7 7DFC 3ANK:/ 25&2BH o*$ed /y HD=>3i$cl#sive of *arra$ts4 Mar-et >ap US T 11 /illio$ AD,s listed o$ NYS

I$ =e/r#ary 2??@. HD=> +a$- /oard approved the mer%er *ith >e$t#rio$ +a$- of P#$ja/ W>+OPX 31 share of HD=> +a$- for 2D Shares of >+OP4 1.912 /ra$ches. ;2@ cities. 2.@D? ATMs Over 12 millio$ c#stomer acco#$ts 'ey /#si$ess areas

Y Fholesale /a$-i$% ,etail /a$-i$% Treas#ry operatio$s =i$a$cials 3as per I$dia$ (AAP4 for the half year e$ded Sept 5?. 2??@ E Total $et reve$#esI ,s 9@&2B /$. i$crease of ;1H over previo#s year E PATI ,s D&D2 /$. i$crease of 99H over the previo#s year 7DFC Standard Li e Insuran-e Co$"an* Ltd& H7DFC/SLI :/

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Stru-ture: / Stro$% a$d sta/le part$ershipI7 Tie #p *ith Sta$dard !ife Ass#ra$ce >ompa$y. U&'& HD=> holds C2&2BH of the e)#ity of HD=>7S! 8rodu-ts: / Diversified prod#ct portfolio coveri$% all life sta%es a$d $eedsI7 Offers 2? i$divid#al prod#cts a$d ; %ro#p pla$s alo$% *ith ; optio$al riders Offers @ f#$d optio$s *ith mar-et li$-ed prod#cts 8re$iu$ in-o$e and gro0thI 7 Kal#es drive$ %ro*thI7 Total premi#m i$come of ,s& 9@&;D /$ for =Y ?C7?@ 3Previo#s year ,s 2@&;B /$4G reflecti$% a %ro*th of C?H R1 ?@7?D %ro*th i$ total premi#m of 59H over R1 ?C7?@ =#$ds #$der ma$a%eme$t of %ro#p $e* /#si$ess i$creased /y @H i$ as at 0#$e 5?. 2??@ as a%ai$st the previo#s year& Co.erage: / Co$$itted to in-reasing -o.erage in an under/insured $ar1et :/ Achieved a total s#m ass#red of ,s& 55&12 /$ i$ respect of ?&2; millio$ lives covered i$ R1 ?D ta-i$% the c#m#lative s#m ass#red to ,s& D?C&; /$ coveri$% over 5&BB millio$ lives >laims other tha$ *ithdra*alsJs#rre$ders amo#$ted to ,s ?&?D /$ & Distri+ution: / Diversified distri/#tio$ $et*or- to cater to c#stomer prefere$ceI 7 HD=> $et*or- is #sed to cross sell /y offeri$% c#stomiAed prod#cts Operates o#t of ;C; offices across the co#$try servi$% over9;? locatio$s Net*or- of over 1.B2.??? fi$a$cial co$s#lta$ts. 5CD corporate a%e$ts a$d other sales i$termediaries & Mar1et share: / Mar-et share of C&5H 3private sector4 a$d 9&CH 3overall4 i$ terms of ffective Premi#m& Ke* "er or$an-e indi-ators and +usiness "ra-ti-es: /A diversified distri/#tio$ mi6 i$cl#di$% the tied a%e$cy a$d alter$ate cha$$els +a$-s. /ro-ers. telemar-eti$%. direct sales force Tied a%e$cy co$tri/#ted B9H effective premi#m i$ R1 ?D Stro$% /a$- ass#ra$ce tie7#ps *ith p#/lic. private. co7 operative a$d forei%$ /a$-s amo$%st the leadi$% players i$ the pe$sio$s se%me$t !evera%i$% tech$olo%y to stre$%the$ processes& For-flo* system a*arded the /est tech$olo%y i$$ovatio$ Fe/ /ased facility to service c#stomers a$d cha$$el part$ers 7DFC ASSET MANAGEMENT:/ Tie7#p *ith Sta$dard !ife I$vestme$ts 3S!I4 HD=> holds B?H of HD=> Asset Ma$a%eme$t HD=> M= offers 59 e)#ity a$d de/t orie$ted prod#cts ar$ed a Profit after Ta6 of ,s 1&1@ /illio$ for =Y?@G ,et#r$ o$ )#ityI C;H Paid a divide$d of 1;?H for =Y?@ to e)#ity shareholders

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Total assets #$der ma$a%eme$t 3AUM4 as at Septem/er 5?. 2??@. stood at ,s& B9C /$ *hich is i$cl#sive of portfolio ma$a%eme$t a$d advisory Services of ,s& 1C? /$& )#ity assets as a proportio$ of the m#t#al f#$d:s AUM is 5;H&

7DFC 8RO8ERT) FUND:/ !a#$ched i$ March 2??; =irst SchemeI HD=> I$dia ,eal state =#$d E =#$d corp#sI US T 2;? millio$ E f#lly i$vested E Domestic. C year close e$ded f#$d E =#$ds ma$a%ed /y HD=> Ke$t#re >apital !imited HD=> I$ter$atio$al =#$d E =#$d >orp#sI UST @?? millio$ E I$ter$atio$al. D year close e$ded f#$d E Tar%eted at premier i$stit#tio$s a$d f#$ds across the *orld I$terested i$ ta-i$% a$ e6pos#re i$ I$dia$ real estate& 7DFC ERGO GENERAL INSURANCE COM8AN) LTD:/ HD=> holds C9H a$d ,(O 3(erma$y4 holds 2BH The compa$y offers A#to I$s#ra$ce. Home I$s#ra$ce. (ro#p Accide$t I$s#ra$ce. (ro#p Travel I$s#ra$ce. >ommercial I$s#ra$ce *hich i$cl#des =ire a$d Mari$e a$d Specialty I$s#ra$ce Prod#cts li-e Directors 8 Officers !ia/ility & Achieved (ross Fritte$ Premi#m of ,s& 2&9 /$& Operates o#t of 2@ locatio$s across the co#$try HD=> $et*or- is #sed to cross sell Home I$s#ra$ce 8 Accide$t I$s#ra$ce HD=> a$d HD=> +a$- data/ase is #sed to cross sell Accide$t I$s#ra$ce&

TA3LE:/?&= CONSOLIDATED EARNINGS:/ HAs at Mar-h <9E ;DDCI

7DFC Return on EAuit* Return on A.erage Assets ;@&CP ;&@P

-onso%idated ;C&;P ;&@P

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Earnings "er share HRsI 8ro it a ter Ta! HRs in +i%%ionI Tota% Assets HRs in +i%%ionI

CB ;=&<? C9D&FF

FB ;@&9< F;B&C<

DISTRI3UTION NETWORK: / HD=>:s distri/#tio$ $et*or- spa$s 2;9 o#tlets that i$cl#de ;9 offices of HD=>:s distri/#tio$ compa$y. HD=> Sales Private !imited 3HSP!4& I$ additio$. HD=> covers over D? locatio$s thro#%h its o#treach pro%rammes& Distri/#tio$ cha$$els form a$ i$te%ral part of the distri/#tio$ $et*or- *ith home loa$s /ei$% distri/#ted thro#%h HSP!. HD=> +a$- !imited a$d other third party direct selli$% associates& To cater to $o$7reside$t I$dia$s. HD=> has offices i$ !o$do$ a$d D#/ai a$d service associates i$ '#*ait. Oma$. Ratar. Sharjah. A/# Dha/i a$d Al 'ho/ar. 0eddah a$d ,iyadh i$ Sa#di Ara/ia&

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7DFC 7OME LOAN AD(ANTAGE :/ Home loa$ co#$selli$% shari$% over 5? years of home loa$ e6perie$ce Door step service Helps i$ fi$di$% Dream home Fide Prod#ct ,a$%e M#ltiple ,epayme$t Optio$ Fide Net*or- of fi$a$ci$% Post dis/#rseme$t service !oa$ repayme$t optio$

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AWARDS G ACCOLADES:/ (oldma$ Sachs has listed HD=> as o$e amo$% top C fi$a$cial services or%a$iAatio$ i$ 2??@& HD=> ra$-ed amo$% the top 5 +est Ma$a%ed >ompa$ies i$ I$dia /y =i$a$ce Asia i$ 2??C Selected as the /est I$dia$ compa$y i$ the =Is J N+=>s J =i$a$cial Services sector at the D#$ 8 +radstreet E America$ 6press >orporate A*ards 2??B a$d 2??C& +est I$vestme$t Ma$a%eme$t >ompa$y i$ I$dia /y U,OMON Y 2??C HD=> *as a*arded a rati$% of 9 o#t of ; i$ 'armayo%Ls M>orporate Social ,espo$si/ility ,ati$%s: i$ 2??C& HD=> is feat#red i$ the !imca +oo- of ,ecords 2??B. for the la$dmarachieveme$t of ,s& O$e trillio$ i$ home loa$ approvals HD=> *as a*arded the (old Shield i$ the =i$a$ce Sector /y I>AI for e6celle$ce i$ =i$a$cial ,eporti$% i$ 2??;& This is the 19th time HD=> has /ee$ selected for this a*ard& HD=> has /ee$ a*arded the L+#si$ess S#per/ra$dL stat#s& HD=> has /ee$ a*arded the L+est Home =i$a$cierL title /y O#tloo- Mo$ey E 2??; co$omic Times >orporate >itiAe$ of the Year A*ard 7 Novem/er 2??9&

FUTURE: / HD=> has al*ays /ee$ mar-et7orie$ted a$d dy$amic *ith respect to reso#rce mo/ilisatio$ as *ell as its le$di$% pro%ramme& this re$ders it more tha$ capa/le to meet the $e* challe$%es that have emer%ed& Over the years. HD=> has developed a vast clie$t /ase of /orro*ers. depositors. shareholders a$d a%e$ts. a$d it hopes to capitaliAe o$ this loyal a$d satisfied clie$t /ase for f#t#re %ro*th& I$ter$al systems have /ee$ developed to /e ro/#st a$d a%ile. to ta-e i$to acco#$t cha$%es i$ the volatile e6ter$al e$viro$me$t& HD=> has developed a $et*or- of i$stit#tio$s thro#%h part$erships *ith some of the /est i$stit#tio$s i$ the *orld. for providi$% specialiAed fi$a$cial services& ach i$stit#tio$ is /ei$% fi$e7t#$ed for a specific mar-et. *hile offeri$% the e$tire HD=> c#stomer /ase the hi%hest sta$dards of )#ality i$ prod#ct desi%$. facilities a$d service&

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C7A8TER/@

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C7A8TER/ @
DIS3URSEMENT OF 7OME LOANS 3) 7DFC 7OUSING DE(ELO8MENT FINANCE COR8ORATION LIMITED This chapter co$tai$s res#lts a$d disc#ssio$ o$ dis/#rseme$t of Home loa$s /y HD=> !TD& It is divided i$to t*o parts o$e part is related to the dis/#rseme$t of home loa$s /y HD=> !TD a$d the seco$d part i$cl#ded the comparative st#dy of dis/#rseme$t of home loa$s made /y commercial /a$-s& Dis/#rseme$t of Home loa$s /y HD=> !TDI7 GRA87/@&9 7DFC: 7ousing %oan s"reads:/ 2&5;H 2&5?H 2&2;H 2&2?H 2&1;H 2&1?H 2&?;H
1RO9 2RO9 5RO9 9RO9 1RO; 2RO; 5RO; 9RO; 1ROB 2ROB 1ROC 2ROC 1RO@ 2RO@ 1R?D

HD=> s#rprises positively o$ 9R $#m/ers *ith the /ottom li$e at ,sC559m$. 11H a/ove o#r a$d Street estimates. reporti$% 1BH %ro*th at the preta6. pre7 e6traordi$ary level& He$ce the stoc- *as #p a si%$ifica$t 15&@HH today a$d has o#tperformed the Se$se6 /y 22&BH si$ce its rece$t lo*s i$ March& =JDF: ,etail a$d *holesale dis/#rseme$t %ro*th *as healthier tha$ e6pected at 1CH firm spreads at 2&2H& >ost7i$come ratio co$ti$#es to improve a$d so does asset )#ality&

@5

j j j jj jj j

De$and d*na$i-s: >o$s#mer a$d *holesale dema$d e6pected to %ro* 1@72?H i$ =Y1? *ith avera%e loa$ siAe at ,s1&; millio$& +oost e6pected i$ 2H1? as real estate prices a$d i$terest rates /ottom o#t&

HTA3LE: / @&;I 7DFC: =JDF Su$$ar* Rs $n =JDFA )5) =;P ;2H ;?P 1?BH 15H <<P 7DDH 71CH /F=P 1BH /?P /FP 9H 75H 5H 1CH 1CH 9@P J5J ?P 1H 9CP 21;H 75@H <;P 722H 2?H 99P 51H <9P ;BP 75H 7BH 9H 52H ;DH <P

In-o$e ro$ O"erations <DE@9B Total I$terest 6pe$ses 2?.B91 Net Interest In-o$e 9DED@< =ees C95 Operati$% 6pe$sesV B1D O"erating 8ro it 9DE9FC >apital (ai$s 12 Others BC Tota% Other In-o$e @C Pre7Ta6 Profit 3pre7e6traordi$aries4 1?.2BC 8re/ta! 8ROFIT 9DE;?@ Ta6 ;EF=< Net 8ro it BCH I$terest I$comeJI$terest 6pe$se >ost I$come ;&CH Fees5O"erating In-o$e CH Dis/#rseme$ts 129.5D? Sa$ctio$s 1;5.9B? Loans CB9EFC9

@9

j j j jj jj j

GRA87/@&< 7DFC: )5) Dis+urse$ent gro0th:/

=BP =DP <BP <DP ;BP ;DP 9BP
9JOO ;JOO <JOO 9JO9 ;JO9 <JO9 9JO; ;JO; 9JO< 9JO= 9JOB 9JO? 9JO@ 9JOC 9JOF

)O) DIS3URSEMENT GROWT7 /////// ANNUAL A(G DIS3& GROWT7 HD=> provides lo$%7term ho#si$% loa$s to lo* a$d middle7i$come i$divid#als. as *ell as to corporatio$s& HD=> also provides co$str#ctio$ fi$a$ce to real estate developers. /esides providi$% lease7fi$a$ci$% facilities to compa$ies a$d developme$t a#thorities for i$frastr#ct#re a$d other assets&

@;

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C7A8TER/C

@B

j j j jj jj j

C7A8TER/C COM8ARATI(E STUD) OF DIS3URSEMENT OF 7OME LOANS 3) COMMERCIAL 3ANKS

C&9 / Dis+urse$ent o 7o$e %oans +* di erent +an1s:/ 7DFC LTD :/ Years No& of Home loa$ acco#$t holders& C?? D;? 115? 195; 1;D9 Home loa$ Dis/#rsed 3i$ crore ,s&4 Distri/#ted D?&?C 12?&?? 199&BC 1@?&55 29?&?? ,ecovered B5&?; D1&2? 12C&51 1B;&D? 22@&12 +ala$ce 2C&?2 2@&@ 1C&5B 19&95 11&@@

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

Inter"retation:/ O$ the a/ove ta/le. it is evide$t that there are i$crease i$ No& of acco#$t holders from C?? to 1;D9 i$ the year 2??@7?D& The loa$ amo#$t distri/#ted amo$% home loa$ acco#$t holder has also i$creased from ,s&D?&?C crore i$ 2??97?; to ,s&29? crore i$ 2??@7 ?D& The recovery proced#re for home loa$s is also stre$%the$i$% d#e to i$creme$t i$

@C

j j j jj jj j

recovered amo#$t. i&e& ,s&B5&?; crore to ,s&2@@&12 crore& So it $#t shall there are #p*ard tre$d i$ $#m/er of acco#$tholders a$d dis/#rseme$t of home loa$s&

8un,a+ Nationa% 3an1 I7 Years No& of Home loa$ acco#$t holders& @1? D;? 112? 1955 1;?? Home loa$ Dis/#rsed 3i$ crores ,s&4 ,ecovered DC&2@ 1;?&?? 1@;&@B 251&?C 2B;&?;

Distri/#ted 12?&1; 1@5&2B 215&B; 29?&@C 2B;&1;

+ala$ce 22&@C 55&2B 2@&?; D&@? D&1?

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

Inter"retation:/ The P#$ja/ Natio$al +a$- is P#/lic sector +a$-& It comes seco$d after State +a$of I$dia i$ its /ra$ch locatio$ a$d e6pa$sio$& =rom the Ta/le. the fi%#res sho* that there are i$creasi$% tre$d i$ c#stomer /ase from @1? i$ the year 2??97?; to 1;?? i$ the year 2??@7?D& The /a$- also sho* e$ha$ceme$t i$ loa$ amo#$t #p to ,s&2B;&1; crore i$ the year 2??@7?D& The recovery process of loa$s i$ past is slo* /#t $o* it is i$creasi$%&

@@

j j j jj jj j

Standard Chartered 3an1 :/ Years No& of Home loa$ acco#$t holders 1?B 15? 1;9 1@? 2B? Home loa$ Dis/#rsed 3i$ crores ,s&4 ,ecovered ;&2C 1?&1B 19&5; 1@&B@ 25&D1

Distri/#ted B&21 11&;; 1C&?B 2?&?D 29&1?

+ala$ce ?&D9 1&5@ 2&C? 1&91 ?&9@

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

Inter"retation:/ The sta$dard chartered /a$- is a private sector /a$-& It has also #p%raded its positio$ i$ /a$-i$% sector i$ D H,ADUN& The fi%#res sho*$ i$ ta/le reveals that there is #p*ard shift i$ c#stomer /ase of +a$- from 1?B c#stomers to 2B? c#stomers& The /a$has also i$creased its share i$ ho#si$% fi$a$ce /y distri/#ti$% ,s& 29&1? crores i$ 2??@7?D& The recovery proced#re of Home loa$ is very so#$d&

@D

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ICICI 3ANK:/ Years No& of Home loa$ acco#$t holders B;? @;5 1?1D 1152 1959 Home loa$ Dis/#rsed 3i$ crores ,s&4 ,ecovered D@&12 1?;&?? 155&9B 199&B; 2?D&1B

Distri/#ted 1?9&55 125&29 1;?&B; 1CB&C; 229&??

+ala$ce B&21 1@&29 1C&1D 52&1? 19&@9

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

Inter"retation :/ The amo#$t reveal that there is treme$do#s i$crease i$ Home loa$ acco#$tholders& The amo#$t distri/#ted as home loa$ is also i$creased from ,s& 1?9&55 i$ 2??97?; to ,s& 229 crore i$ 2??@7?D& +#t the recovery mecha$ism of the +a$- is $ot so %ood that:s *hy the o#tsta$di$% amo#$t sho*s fl#ct#ati$% tre$d& C&; /COM8ARATI(E STUD) OF DIS3URSEMENT OF 7OME LOANS 3) COMMERCIAL 3ANKS:/ There are $#m/er of schemes a$d prod#cts. offered /y commercial /a$-s to attract the c#stomers& The compariso$ amo$% differe$t commercial /a$-s *hich offer home loa$s i$ re%ard of Dis/#rseme$t of home loa$s are asI7

D?

j j j jj jj j

No& o 7o$e %oan a--ount ho%ders #/ Ta+%e C&;HaI

)ears

7DFC LTD

8un,a+ Nationa% 3an1 @1? D;? 112? 1955 1;??

Standard -hartered 3an

ICICI 3an1

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

C?? D;? 115? 195; 1;D9

1?B 15? 1;9 1@? 2B?

B;? @;5 1?1D 1152 1959

Avera%e of No& of acco#$ts holdersI 7 Total of home loa$ c#stomers U 77777777777777777777777777777777777777 No& of year Ta+%e C&; H+I Na$e o 3an1 A.erage HRsI 8er-entage o A--ountho%ders

D1

j j j jj jj j

HD=> !TD P#$ja/ Natio$al +a$Sta$dard >hartered +a$I>I>I +AN' Total

11?D 11B5 1BB 1?1@

52 59 ; 2D

59;B

1??

GRA87:/ C&; Home loa$ holders of HD=> !TD a$d commercial /a$-s

35 30 25
percentage of home loan holdes

20 15 10 5 0 HDFC L D !"# $C# %C%C% #&"'

Inter"retation:/ The fi%#re reveals that HD=> !TD is havi$% lar%e $#m/er of home loa$ acco#$tholders& So it ra$-s first amo$% other /a$-s& +#t %over$me$t sector PN+ is $ot /ehi$d so m#ch *ith 51H also mar-et leader& The /a$-s have sho*$ i$crease i$ their D2

j j j jj jj j

c#stomers /ase from 2??9 to 2??@&/#t loa$ cases&

HD=> !TD comes as mar-et leader i$ the home

7o$e %oans distri+uted +* 7DFC and Co$$er-ia% +an1s:/ Ta+%e C&< HaI

)ears

7DFC LTD

8un,a+ Nationa% 3an1 D?&?C 12?&?? 199&BC 1@?&55 29?&??

Standard -hartered 3an1

ICICI 3ANK

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

12?&1; 1@5&2B 215&B; 29?&@C 2B;&1;

B&21 11&;; 1C&?B 2?&?D 29&1?

1?9&55 125&29 1;?&B; 1CB&C; 229&??

3,s&i$ crore4 Avera%e of home loa$s %ra$ted Total home loa$s %ra$ted U 777777777777777777777777777777777 No& of years

D5

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Ta+%e& C&< H+I Na$e o 3an1 HD=> !TD P#$ja/ Natio$al +a$Sta$dard >hartered +a$I>I>I +AN' A.erage HRsI 2?9&B2 1;;&?1 1;&@? 1;;&CD 8er-entage o ho$e %oans granted HRs in -roreI 5D 2D 5 2D

Tota%

B<9&;;

9DD

To #$dersta$d the compariso$ more effectively a$d closely. it has /ee$ sho*s Dia%rammatically as follo*sI7 GRA87:/ C&<

D9

j j j jj jj j

Home loa$s %ra$ted /y HD=> !TD a$d commercial /a$-s (0 35 30 percentage 25 of home 20 loan granted 15 10 5 0 HDFC L D !"# $C# %C%C% #&"'

Inter"retation:/ There is $o do#/t that every /a$- tries to ma6imiAe its home loa$ dis/#rseme$t& +#t o$ the /asis of data it is co$cl#ded that HD=> !TD sho*s hi%h avera%e of loa$ %ra$ts ,s& 2?&B2 crore as compared to I>I>I. sta$dard charted /a$- a$d PN+ respectively& ,s1;;&?1. ,s& 1;&@? a$d ,s& 1;;&CD crores& O$ this a$alysis the HD=> !TD are hi%her loa$ provider as compared to other sector /a$-s&

D;

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Re-o.er* o 7o$e %oans:/ Ta+%e C&= HaI )ears 7DFC 3ANK HRs in -roreI DC&2@ 1;?&?? 1@;&@B 251&?C 2;B&?; 8un,a+ Nationa% 3an1H Rs in -roreI B5&?; D1&2? 12C&51 1B;&D? 22@&12 Standard -hartered 3an1 HRs in -roreI ;&2C 1?&1B 19&5; 1@&B@ 25&D1 ICICI 3ANK HRs in -roreI

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

D@&12 1?;&?? 155&9B 199&B; 2?D&1B

Avera%e recovery of home loa$s DB

j j j jj jj j

Total home loa$s recovered U 7777777777777777777777777777777777 No& of years

Ta+%e C&= H+I

Na$e o 3an1

A.erage HRsI

HD=> !TD P#$ja/ Natio$al +a$Sta$dard >hartered +a$I>I>I +AN'

1@9&?; 15;&21 19&9C 15@&?@

8er-entage o ho$e %oans re-o.eredH Rs in -roreI 5D 5? 5 2@

Total

9C1&@?

1??

It is more clear *ith the help of this dia%ramI7 GRA87:/ C&=

DC

j j j jj jj j

Home loa$s recovered /y HD=> !TD a$d commercial /a$-s

(0 35 30 25 percentage 20 of recover) 15 10 5 0 HDFC L D !"# $C# %C%C% #&"'

Inter"retation:/ I$ the previo#s years the recovery process of %ra$ti$% loa$s are very #$or%a$iAed a$d i$efficie$t& So there are less recovery of home loa$s /y the commercial /a$-s& +#t it is evide$t from the ta/le that every /a$- *hether p#/lic or private sho*ed i$crease HD=> !TD has the %reatest recovery of home loa$s i&e& 5DH. thereafter P#$ja/ $atio$al /a$recovered the 5?H of sa$ctio$ amo#$t& The sta$dard chartered /a$- is havi$% lo*est recovery of their %ra$ted amo#$t as home loa$s& Outstanding 3a%an-e :/ Ta+%e C&B HaI

)ears

7DFC LTD HRs in -roreI

8un,a+ Nationa% 3an1HRs in -roreI

Standard -hartered 3an1HRs in -roreI

ICICI 3ANKHRs in -roreI

D@

j j j jj jj j

2??97?; 2??;7?B 2??B7?C 2??C7?@ 2??@7?D

22&@C 55&2B 2@&?; D&@? D&1?

2C&?2 2@&@ 1C&5B 19&95 11&@@

?&D9 1&5@ 2&C? 1&91 ?&9@

B&21 1@&29 1C&1D 52&1? 19&@9

Avera%e of /ala$ce d#e Total of +ala$ce d#e i$ ; years U 77777777777777777777777777777777777777 No& of years

Ta+%e C&B H+I

Na$e o 3an1 HD=> !TD PN+ Sta$dard >hartered +a$I>I>I +AN' Tota%

A.erage HRsI 2?&B1 1D&@D 1&5@ 1C&C2 BF&9B

8er-entage o +a%an-e due HRs in -roreI 59 55 2 51 9DD

Avera%e of o$e /a$DD

j j j jj jj j

Ha%e U 777777777777777777777777777 61?? Total Avera%e of +a$-s The dia%rammatically prese$tatio$ of data is asI7 GRA87:/ C&B

+ala$ce d#e o$ home loa$s /y HD=> !TD a$d commercial /a$-s

35 30 percentage of *alance due 25 20 15 10 5 0 HDFC L D !"# $C# %C%C% #&"'

Inter"retation:/ =rom the a/ove ta/le a$d fi%#re it sho*s that sta$dard chartered /a$- has /ee$ less o#tsta$di$% /ala$ce amo$% other /a$-s& The HD=> !TD %ot hi%h /ala$ces d#e to lar%e c#stomer /ase. $ot proper recovery process a$d lac- of moder$isatio$ of activities& The p#/lic sector /a$- PN+ is havi$% more /ala$ce d#e i&e& 55H as compared to sta$dard chartered /a$- a$d icici /a$-&

1??

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C7A8TER/F

1?1

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C7A8TER/F ANAL)SIS G INTER8RETATION

The a$alysis is /ased o$ the respo$ses %ive$ /y c#stomers thro#%h )#estio$$aires& AGE GROU8 OF SUR(E)ED RES8ONDENTS TA3LE F&9: Age grou" 9C / ;B *ears ;? / <B *ears <? / =F *ears BD / ?D *ears No& o Res"ondents 9;@ ?@ =? ;= 1?2

j j j jj jj j

More than ?D *ears

C7ART/F&9:

Ana%*sis:/ =rom the chart a/ove *e fi$d that 9CH of the respo$de$ts fall i$ the a%e %ro#p of 1@ E 2; years. 2;H fall i$ the a%e %ro#p of 2B E 5; years a$d 1CH fall i$ the a%e %ro#p of 5B E 9D years& Therefore most of the respo$de$ts are relatively yo#$% 3/elo* 2B years of a%e4& a$d BH respo$de$t:s a%e are ;?7B? years a$d 2H respo$de$t:s a%e are B? to a/ove years& GENDER CLASSIFICATION OF SUR(E)ED RES8ONDENTS TA3LE/F&; Sr& No& 1 2 Categor* Married U$married Total No& o Res"ondents 19? B? 2?? 8er-entage C?H 5?H 1??H +ase 2?? respo$de$ts

C7ART/F&;

1?5

j j j jj jj j

Inter"retation =rom the ta/le a$d %raph a/ove it ca$ /e see$ that C?H respo$de$t:s are married& 5?H respo$de$t:s are #$married&

Edu-ationa% Aua%i i-ation o res"ondent2s TA3LE/F&< Sr& No& 1 2 5 Categor* U$der %rad#ate (rad#ate Post %rad#ate Total No& o Res"ondents ;? @? C? 2?? 8er-entage 2;H 9?H 5;H 1??H +ase 2?? respo$de$ts

C7ART/F&<

1?9

j j j jj jj j

Inter"retation =rom the ta/le a$d %raph a/ove it ca$ /e see$ that 2;H respo$de$t:s are #$der %rad#ate& 9?H respo$de$t:s are (rad#ate& 5;H respo$de$ts are Post %rad#ate&

Nu$+er O *ear2s Are )ou in DehradunN TA3LE/F&= Sr& No& 1 2 Categor* !ess tha$ five years More tha$ five years Total No& o Res"ondents C@ 122 2?? 8er-entage 5DH B1H 1??H +ase 2?? respo$de$ts

C7ART/F&=

1?;

j j j jj jj j

Sta*ing *ears in Dehradun

3+, less than five )ears -1, more than five )ears

Inter"retation =rom the ta/le a$d %raph a/ove it ca$ /e see$ that 5DH respo$de$t:s are i$ Dehrad#$ is less tha$ five year:s& B1H respo$de$t:s are i$ Dehrad#$ is more tha$ five year:s&

CUSTOMER 8ROFILE OF SUR(E)ED RES8ONDENTS

TA3LE F&B: Custo$er "ro i%e Student 7ouse0i e Wor1ing 8ro essiona% 3usiness Se% E$"%o*ed Go.ern$ent ser.i-e e$"%o*ee Chart/F&B No& o res"ondents @ B 99? =F ;= ;=

1?B

j j j jj jj j

11,

student 11, 3, 2, housewife wor.ing professional *usiness

22,

51,

self/empo)ed government service

Inter"retation =rom the ta/le a$d %raph a/ove it ca$ /e see$ thatI7 ;1H of the respo$de$ts are *or-i$% professio$als. 22H are i$to /#si$ess a$d 11H are self7employed. 11H of the respo$de$t:s are %over$me$t service employee a$d 5H of the respo$de$ts are st#de$t a$d 2H of the respo$de$ts are ho#se7*ife& ANNUAL 7OUSE 7OLD INCOMEN TA3LE/F&? Sr& No& 1 2 5 9 Categor* !ess tha$ 2 lacs +et*ee$ 2 to ; lacs +et*ee$ ;to @lacs More tha$ @ lacs Total No& o Res"ondents D@ B2 5? 1? 2?? 8er-entage 9DH 51H 1;H ;H 1??H +ase 2?? respo$de$ts

C7ART/F&?

1?C

j j j jj jj j

Inter"retation =rom the ta/le a$d %raph a/ove it ca$ /e see$ that 9DH respo$de$t:s a$$#al ho#sehold i$come is less tha$ 2 lacs& 51H respo$de$t:s a$$#al ho#sehold i$come is /et*ee$ 2 to ; lacs& 1;H respo$de$t:s a$$#al ho#sehold i$come is /et*ee$ ; to @ lacs& ;H respo$de$t:s a$$#al ho#sehold i$come is more tha$ @ lacs&

Do *ou 1no0 a+out 7DFC housing de.e%o"$ent inan-e -or"oration LTDN TA3LE F&@: Categor* Yes No& o Res"ondents 1B9

No

1B

C7ART:/F&@

1?@

j j j jj jj j

A0areness a+out 7DFC LTD

+,
01$ "2

+1,

Inter"retation:/ =rom the ta/le a$d %raph a/ove it ca$ /e see$ that D1H respo$de$t:s are -$o*$ a/o#t HD=> !TD DH respo$de$t:s are $ot -$o*$ a/o#t HD=> !TD

Ta+%e F &C:/
Reasons or getting the ho$e inan-ed Sr&No& a& /& Nu$+er o Reasons No$7availa/ility of f#$ds ,el#cta$cy to pay cash i$ o$e %o 8er-entage 5B 5;

1?D

j j j jj jj j

c& d&

Ta6 /e$efit A$y other

29 ;

GRA87:/ F&C (0 35 30 25 20 15 10 5 0

percentage of customers

non/ reluctanc) availa*ilit) of funds

ta3 *enefit

an) other

Inter"retation I7 To i$terpret the respo$se of the )#estio$s. the fi%#res sho*s that most of the c#stomers fi$d the pro/lem i$ availa/ility of f#$ds i&e& 5BH a$d very less $#m/er of c#stomers fo#$d pro/lem i$ payi$% cash i$ o$e %o is 5;H. c#stomers %et ho#si$% loa$ for ta6 /e$efits is 29H& This *as the e6pected respo$se /eca#se a lar%e $#m/er of people fi$d a pro/lem of availa/ility of f#$ds *hich *or-s as a$ o/stacle i$ o*$i$% a dream home& I$ todayLs life. people hardly ear$ /oth mea$s a$d e$ds of life a$d they do$Lt have m#ch of mo$ey to /#y a home or a la$d to co$str#ct ho#se /eca#se of cost of property& So. they ta-e the adva$ta%e of home loa$s provided /y differe$t /a$-s at differe$t terms feasi/le to the c#stomers& There are very less $#m/er of people. *ho do$Lt o*$ home eve$ *he$ they have s#fficie$t f#$ds a$d they ta-e the adva$ta%e of home loa$s /eca#se they do$Lt *a$t to pay h#%e cash i$ o$e %o& O$ the /asis of st#dy. it is co$cl#ded that most of people lac- of mo$ey i$ f#lfili$% their dreams a$d fe* of them *ere rel#cta$t to pay cash i$ o$e %o a$d *a$ted to pay their home loa$s slo*ly i$ i$stallme$ts&

11?

j j j jj jj j

Ta+%e/F&F
Fro$ 0here *ou ha.e got *our ho$e inan-ed Na$e o 3an1s 5 -o$"an* HD=> !TD P#$ja/ Natio$al +a$Sta$dard >hartered +a$I>I>I +AN' A$y other 8er-entage o -usto$ers ;; 1; ?C 2? ?5

To #$dersta$d the respo$se more effective a$d closely. it has /ee$ sho*ed dia%rammatically as follo*s I7

(,APHI7 D&D

111

j j j jj jj j

=rom *here yo# have %ot yo#r home fi$a$ced

-0 50 (0 percentage of 30 customers 20 10 0 HDFC L D !"# $C# %C%C% #&"' an) other

Inter"retation:/ The a$alysis sho*ed that a lar%e $#m/er of c#stomers prefer HD=> !TD as compared to others& The data sho*s that CH of c#stomers too- loa$ from Sta$dard >hartered +a$-. 2?H of c#stomers from I>I>I +AN'. 1;H >#stomers too- loa$ from P#$ja/ Natio$al +a$-. ;;H of c#stomers too- loa$ from HD=> !TD a$d a 5H of c#stomers fall #$der the cate%ory of LA$y otherL *hich i$cl#ded State +a$- of I$dia. >a$ara +a$-. P#$ja/ a$d Si$d +a$-. etc& The data sho*s that most of people prefer HD=> !TD compared to p#/lic sector /a$-s a$d other private /a$-s& This is /eca#se of the e6tra services provided /y HD=> !TD& Ho*ever. there is less differe$ce i$ fi%#res of I>I>I +a$- a$d P#$ja/ Natio$al +a$-& +#t there is co$sidera/le differe$ce i$ fi%#res of the t*o private sector /a$-s i&e& I>I>I /a$- a$d Sta$dard >hartered +a$-& As I>I>I is the mar-et leader i$ the home loa$s sector& This may /e the reaso$ for s#ch differe$ce i$ Sta$dard >hartered +a$-Ls perce$ta%e a$d I>I>I +a$-Ls perce$ta%e& A$other reaso$ for specialiAed services i$ home loa$s. more amo#$ts of loa$s. a$d efficie$t )#ery ha$dli$%& Ho*ever. the a$alysis sho*ed that the people prefer HD=> !TD for home loa$ /eca#se of their services a$d e6cessive feat compared to other /a$-s&

Ta+%e/F&9D
Sour-es o in or$ation a+out 7o$e Loans S-he$e 112

j j j jj jj j

Sour-es o in or$ation Ne*spapers Ma%aAi$es

8er-entage o -usto$ers 9D 1B

+a$$ersJHoardi$%sJPamphlets Ford of mo#th A$y other so#rce

11 2? ?9

C7ART:/F&9D "er-entage o sour-e o in or$ation a+out ho$e %oans s-he$e

115

j j j jj jj j

20, 11,

(, (+, 1-,

newspaper maga4ines *anners word of mouth an) other source

Sour-es o in or$ation a+out 7o$e Loans S-he$e

Inter"retationI7 The data sho*s that aro#$d 2?H of c#stomers %ot i$formatio$ from so#rce of LFord of Mo#thL *hich i$cl#des i$formatio$ from frie$ds. relatives. collea%#es etc& 9DH of c#stomers %ot i$formatio$ from $e*spapers. o$ly 1BH of c#stomers from ma%aAi$es a$d 9H of c#stomers %ot i$formatio$ a/o#t home loa$s schemes #$der LA$y other so#rceL a$d 11H thro#%h +a$$ersJ Hoardi$%sJPamphlets &

119

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Ta+%e/F&99
O"inion a+out the ser.i-es o 7DFC LTD Ser.i-es o 7DFC LTD Strong%* agree a& Professio$ally ma$a%ed /& ,elia/le 8 tra$spare$t c& Socially respo$si/le @BH 8er-entage o -usto$ers agreeing Agree Neutra% Disagree Strong%* disagree 7

1?H

9H

BCH

55H

C;H

1?H

1;H

9H

d& >#stomer care

2?H

B@H

@H

e& R#ery ha$dli$%

2?H

CBH

9H

GRA87/F&99 11;

j j j jj jj j

O"inion o -usto$ers a+out 7DFC LTD

+0 60 50 -0 percentage of customers 50 (0 30 20 10 0 strongl) agree agree neutral disagree strongl) disagree

c
factor

Inter"retation:/ >#stomers from HD=> !TD are )#ite satisfied from their services li-e )#ery ha$dli$% a$d c#stomers social respo$si/ility of /a$-s to*ards c#stomers a$d professio$ally ma$a%ed services& They do$Lt %ive so %ood respo$se to relia/ility a$d tra$spare$cy services of /a$-s& So. c#stomerLs satisfactio$ level to*ard HD=> !TD services is li%htly satisfied&

Ta+%e/F&9;
11B

j j j jj jj j

O"inion o -usto$ers a+out ho$e %oan s-he$es 7DFC LTD :/ Ser.i-es o 7DFC LTD 8er-entage o -usto$ers agreeing Strong%* agree B?H 92H 52H Agree 5;H 9;H ;BH Neutra% ;H 19H 12H Disagree Strong%* disagree 7 7 7 7 7 7

a& Amo#$t of loa$ /& !e%al formalities c& I$terest rates

d& ,epayme$t optio$s e& Sec#rity dema$ded f& I$stallme$ts %& Services h& Processi$% for sa$ctio$ of loa$

2BH 2?H ;;H 9;H ;;H

B9H 52H 9?H 5?H 29H

1?H 9@H ;H 1@H 1@H

7 7 7 BH 5H

7 7 7 1H 7

GRA87:/ F&9;

11C

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8er-entage o satis a-tion %e.e% o -usto$ers o 7DFC LTD

50 -0 50
percentage of customers

(0 30 20 10 0

strongl) agree agree neutral disgree strongl) disagree

g h

factors

Inter"retation:/ The a$alysis sho*s that the c#stomers of HD=> !TD %ave B? perce$t of amo#$t of loa$ a$d le%al proceedi$%s. ;BH to i$terest rates. 9;H to proceedi$%s a$d services. ;;H to i$stallme$ts& So. c#stomer of HD=> !TD did$Lt %ive respo$se re%ardi$% the services of the /a$- J compa$y e6cept to the amo#$t of loa$ a$d le%al formalities&

TA+! I7 D&15

11@

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DATA GI(ES 8REFERENCE OF RES8ONDENTS OF 7OME LOANS COM8ANIES AND 3ANKS

COM8AN)2S NAME 7DFC LTD STANDARD C7ARTERED 3ANK ICICI 3ANK 8N3 S3I TOTAL GRA87:/F&9<

NO&OF RES8ONDENTS @C ; 9D @ < 9DD

HPI @C ; 9D @ < 9DD

NO& OF RES8ONDENTS
60 50 -0 50 (0 30 20 10 0 HDFC L D $C# %C%C% #&"' !"# $#%

percentage of customers

INTER8RETATION:/ =rom the ta/le a$d %raph a/ove it ca$ /e see$ thatI7 C@H of the people co$tacted prefer HD=> !TD to a$y other a$d therefore it is ra$-ed $o&1 /y that perce$t of respo$de$ts& 8RO3LEMS FACED 3) CUSTOMERS IN A(AILING 7OME LOANS

11D

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There are everythi$% i$ the *orld has %ood or /ad poi$ts& No do#/t /a$-i$% i$d#stryJ compa$y has made ma$y efforts to e$ha$ce the c#stomer satisfactio$ /#t c#stomer still faced some pro/lems& These are hi%h li%hte$ed as /elo*I 14 The c#stomer does $ot have proper -$o*led%e a/o#t differe$t home loa$ prod#cts so they face pro/lem i$ ma-i$% a %ood deal& 24 There are proced#ral delays. *hich harass the c#stomers lot& This *ill cr#sh the c#rtsy of c#stomers to avail the home loa$& 54 The attit#de of /a$- employees some times $o$ cooperative a$d it creates a h#rdle i$ /#ildi$% tr#st a$d >o$fide$ce amo$% c#stomers a/o#t /a$-s& 94 The /a$-s do $ot ta-e i$to acco#$t the payi$% capacity of c#stomers& So some c#stomers are $ot a/le to %et amo#$t of loa$ $eeded /y them& So a/ove disc#ssed are the pro/lems *hich faced /y c#stomers *hile availi$% home loa$s&

C7A8TER/9D
12?

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C7A8TER/9D FINDINGS
1& HD=> !TD havi$% %ood /ra$d ima%e i$ the mi$ds of c#stomers& 121

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2& Majority of the people %ot loa$s from HD=> !TD o$ly 5& Most of the c#stomers are $ot a*are of the prod#cts of HD=> home loa$s 9& Some of the c#stomer:s felt that the i$terest rates are some *hat hi%h ;& Some of the c#stomer $ot havi$% %ood faith o$ private /a$-s li-e Sta$dard chartered /a$-. HS+> /a$- etc& B& Most of the people are directly %o to HD=> to apply a home loa$ C& Some of the c#stomer of HD=> already /e$efited thro#%h HD=> home loa$ prod#cts a$d services @& >#stomer a*are$ess is medi#m a/o#t HD=> prod#cts& D& HD=> !TD providi$% %ood services to their c#stomers&

C7A8TER/99

122

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C7A8TER/99 RECOMMENDATIONS AND SUGGESTIONS

These suggestions ha.e +een dis-ussed as o%%o0s:/

125

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14 To i$crease their c#stomers. the HD=> !TD sho#ld provide specialiAed services i$ this sector& These services ca$ /e s#ch as proper %#ida$ce to the c#stomer re%ardi$% the processi$% of loa$s. especially for the c#stomers *ho are illiterate& 24 To satisfy their c#stomers a$d for %ood deali$%s i$ f#t#re. the HD=> !TD sho#ld ma-e prompt dis/#rseme$t of loa$ amo#$t to the c#stomers so that they ca$ /#y or co$str#ct their dream home as early as possi/le& 54 The HD=> !TD sho#ld #se easy proced#re. or say. less le$%thy proced#re for the sa$ctio$i$% of loa$ to the c#stomer& There sho#ld /e less $#m/er of le%al formalities. i$ case this e6ists. the$. these sho#ld /e completed i$ less time& This *ill /e helpf#l i$ attracti$% more c#stomers& 94 Altho#%h the i$terest rates o$ specific $orms. yet c#stomers see- less i$terest rate *hich ca$ lo*er their cost of ho#se& So /a$-s sho#ld try to lo*er their i$terest rates& Needles to say. that the /a$- *hich is havi$% lo*er i$terest rates. have the ma6im#m clie$ts for loa$s& ;4 HD=> !TD provide loa$ accordi$% to the repayi$% capacity of the c#stomer a$d hisJher eli%i/ility& D#e to *hich. some c#stomers are $ot a/le to %et amo#$t of loa$ $eeded /y them& So. the HD=> !TD sho#ld softe$ their $orms re%ardi$% the loa$ amo#$t& B4 >reate a*are$essI The >ompa$y has to ta-e care of a*are$ess creatio$ a/o#t the prod#cts a$d services amo$% the c#stomers& C4 >har%esI The >ompa$y has to red#ce the mortality a$d admi$istratio$ char%es& @4 The compa$y has to red#ce their i$terest rates o$ home loa$ prod#cts a$d services& D4 The compa$y has to ide$tify the pote$tial c#stomers& 1?4 >ompa$y sho#ld co$sider the prese$t competitio$ a$d sho#ld act accordi$% to the c#stomer $eeds& 114 The HD=> !TD sho#ld try to provide proper -$o*led%e re%ardi$% their home loa$ schemes. eve$ to people *ho do$Lt -$o* a/o#t s#ch schemes a$d their /e$efits especially i$ r#ral areas& So they sho#ld provide -$o*led%e to the i%$ora$t c#stomers. especially i$ r#ral areas a$d /ac-*ard #r/a$ area So. a/ove are the mai$ s#%%estio$s provided to the HD=> !TD& +y co$sideri$% these s#%%estio$s. the HD=> !TD ca$ stre$%the$ their c#stomer /ase i$ home loa$s sector& They sho#ld improve their services a$d red#ce le%al proceedi$%s a$d sho#ld /e frie$dly to their c#stomers& All this *ill /e helpf#l to satisfy their c#stomers&

129

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C7A8TER/9;

12;

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C7A8TER/9; CONCLUSION

12B

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14 I$ my st#dy *e came to -$o* that ma$y peoples are i$terested to ta-e a home loa$ from HD=> !TD to co$str#ct their homes& 24 Home loa$s have lo$% period *he$ compare to other perso$al loa$s a$d other loa$s& So peoples are co$f#sed to ta-e a home loa$& 54 ve$ tho#%h the i$terest rates are hi%h peoples are *illi$% to ta-e a loa$ from HD=> !TD d#e to some reaso$s& 94 The i$terest rates also some *hat hi%h *he$ compare to other /a$-s ;4 The loa$ sa$ctio$ process is lo* *he$ compare to other /a$-s& B4 =or dis/#rseme$t process is also it *ill ta-e lo* time *he$ compare to other /a$-s =i$ally the *hole research *as carried o#t i$ a systematic *ay to reach at e6act res#lts& The *hole research a$d fi$di$%s *ere /ased o$ the o/jectives& Ho*ever. the st#dy had some limitatio$s also s#ch as lac- of time. lac- of data. $o$7respo$se. rel#cta$t attit#de a$d illiteracy of respo$de$ts. *hich posed pro/lems i$ carryi$% o#t the research& +#t proper atte$tio$ *as made to >arry o#t research i$ proper *ay a$d to ma-e acc#rate co$cl#sio$ for the HD=> !TD *hich may /e$eficial for /a$-s to e$ha$ce their c#stomer /ase&

12C

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3I3LIOGRA87) REFERENCES
RE(IEWS 12@

j j j jj jj j

+erstai$ David32??@4. Home e)#ity loa$s a$d private mort%a%e i$s#ra$ceI ,ece$t Tre$ds 8 Pote$tial Implicatio$s". Kol&5 No&2. A#%#st 2??@. Pp& 91 7 ;5 Dr& ,a$%araja$ >& 32??14. A Simple rror >orrectio$ Model of Ho#se Price"&0o#r$al of Ho#si$% co$omics Kol& 9. No& 5.pp 2C E 59 =a$$i$% 31D@24. The Dema$d for Home Mort%a%e De/t" 0o#r$al of Ur/a$ co$omics. Kol 11 No 2. Novem/er. pp& CC?7CC9 (odse 31D@54. loo-i$% a fresh at /a$-i$% prod#ctivity". 0o#r$al of ,eal state !iterat#re. Kol& No& 15. Pa%e 191 to 1B9& Haavio. 'a#ppi32???4 . ,eside$tial !e$di$% to !o*7I$come a$d Mi$ority =amiliesI vide$ce from the 1DD2 HMDA Data.P =ederal ,eserve +#lleti$.Kol $o @?324. Decem/er 2??? Pp7CD71?@ '#l-ar$i 31DCD4. Developme$t respo$si/ility a$d profita/ility of /a$-s" 0o#r$al of co$omic Perspectives. Kol D No 1 .pp& 2B752& !a co#rr. Micheal32??C4 . co$omic =actors Affecti$% Home Mort%a%e Disclos#re Act ,eporti$%" The America$ ,eal state a$d Ur/a$ co$omics Associatio$. Kol&2 No& 2 May 1@. 2??C. Pp& 9; 7;@ !a co#r Micheal32??B4 . The Home P#rchase Mort%a%e Prefere$ces Of !o*a$d7 Moderate I$come Ho#seholds". =orthcomi$% i$ ,eal state co$omics . Kol 1@. No 9 . Decem/er 2?. 2??B. p& ;@;& Ka$dell .-erry D32??@4. S#/prime le$di$% a$d ho#si$% /#//leItail *a% do%O"I$ter$atio$al 0o#r$al of +a$- Mar-eti$%. vol 21.$o 2. pp& ;57C +roch#re o$ home loa$s from HD=> !TD NEWS 8A8ERS The Times of I$dia =i$a$cial 6press WE3 8AGES:/ httpIJJ***&hdfci$dia&comJ httpIJJ***&hdfci$dia&comJothersJpop#pJ$e*sJhdfcYfi$Yres#ltYj#$eY5?Y?@&html ***&hdfc&com httpIJJ***&ilovei$dia&comJreal7estateJho#si$%7fi$a$ce7 compa$iesJhdfc&html httpIJJ***&loa$s$e*s&i$foJHome7loa$Jhdfc7home7loa$sJ httpIJJ***&hdfci$dia&comJloa$sJhm7loa$7doc#me$ts&asp httpIJJ***&thi$-pla$i$vest&comJ2??DJ?1Jhdfc7*ill7c#t7home7loa$7ratesJ

12D

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httpIJJ***&s#$corp&com&a#Js#$corpJperso$alJhomeYloa$sJtipsJfa)&asp6 httpIJJi$vesti$%&/#si$ess*ee-&comJresearchJstoc-sJpeopleJpeople&aspOricUHD=>&+O httpIJJ***&eco$omy*atch&comJcompa$iesJfor/es7listJi$diaJho#si$%7developme$t7 fi$a$ce7corporatio$&html httpIJJ***&hdfci$dia&comJloa$sJhome7loa$&asp httpIJJdocs&%oo%le&comJ%vie*O aUv8)UcacheI*o0TMDK1H!Y0I***&hdfc&comJpdfJ52A(M H2;2?speech&pdfShdfcSho#si$%Sfi$a$ceSdevelopme$tSprod#ct8hlUe$8%lUi$ httpIJJ***&m#$ichre&comJe$JpressJpressYreleasesJ2??CJ2??CY1?Y5?YprofileYhdfc&asp 6 httpIJJ***&hdfc&com&mvJfa)&htm httpIJJayaa$/ayaa$&comJhdfc7ltd7fi$a$cial7res#lts7i$dia$7%aap7for7the7period7april7to7 j#$e72??DJ httpIJJ***&val#e$otes&comJpressJprYHD=>Y2;?ct?;&aspO Art>dUC??158>atU>8IdU1??

15?

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JUESTIONNAIRE
151

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Dear SirJ madam I am Ra,ni doi$% M+A from (&(&S&I&P U$iversity& I m prepari$% a project o$ A STUD) ON 7OME LOANS& =or this I have desi%$ed a R#estio$$iare to -$o* yo#r vie*s a$d satisfactio$ level of home loa$s &please fill the %ive$ as per yo#r thi$-i$% a$d e6perie$ces *ith this& I *ill /e tha$-f#l to yo# for this& Na$e: ZZZZZZZZZZZZZZZZZZZZZZZZZZZ&& Address: ZZZZZZZZZZZZZZZZZZZZZZZZZZ&& Conta-t No :QZZZZZZ3 O4ZZZZZZ 3M4ZZZZZZZZZ Cit*: ZZZ&&&&&&&&&&&&&&&8in: ZZZZZZZ&State: ZZZZZZZZZ&

1& NameI YYYYYYYYYYYYYYYYYYYY 2& A%eI 3a4 +elo* 5? 5& Occ#patio$I 3a4 Professio$al 3e4 Others

3/4 5?79?

3c4 9?7;?

3d4 A/ove ;? 3c4 Salaried

3/4 Self7employed

9& Fhich i$come %ro#p do yo# /elo$%O 3Per a$$#m4 3a4 +elo* 2 la-hs 3/4 279 la-hs 3c4 97B la-hs 3d4 B la-hs a$d a/ove ;& Have yo# ever ta-e$ Home loa$ /eforeO 3a4 Yes 3/4 No B& If yes. from *hich +a$-Jcompa$yO 3a4 I>I>I 3/4 HD=> 3d4 >e$t#rio$ /a$- of P#$ja/

3c4 UTI 3e4 others

C& Are yo# Satisfied *ith the services providedO 3o$ ; poi$t scale4 YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY 152

j j j jj jj j

Hi%hly dissatisfied

dissatisfied

Ne#tral

satisfied

hi%hly dissatisfied

@& Fhile ta-i$% loa$. *hich thi$%s attract yo# the mostO 3a4 I$terest rates 3/4 Service Provided 3c4 Pay /ac- period 3d4 Schemes 3d4 Others D& ve$ if the I$terest rate is hi%h for the perso$al loa$s. yo# *ill %o for itO 3a4 Yes 3/4 No 1?& Ho* m#ch loa$ amo#$t yo# too-O 3a4 !ess tha$ 1 la-hs 3c4 ;71? la-hs

3/4 17; la-hs 3d4 more tha$ 1? la-hs

11& ve$ if the I$terest rate is hi%h for the Home loa$s. yo# *ill %o for itO 3a4 Yes 3/4 No 12& Do yo# o*$ a homeZO Yes [ \ No [ \ If Yes. the$. ProceedZZZ 15& Have yo# %et it fi$a$cedO Yes [ \ No [ \ If Yes. the$. proceedZZ&& 19& Fhat is reaso$ for %etti$% it fi$a$cedO 1& No$ availa/ility of f#$ds [ \ 2& ,el#cta$ce to pay cash i$ o$ %o [ \ 5& Ta6 /e$efit [ \ 9& A$y other 3please specify4 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 1;& =rom *hich of the follo*i$% /a$-sJ compa$y yo# have %ot if fi$a$cedO Sta$dard >hartered +a$- [ \ State +a$- of I$dia [ \ I>I>I +a$- [ \ 7DFC LTD R S A$y other 3please specify4 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 1B& =rom *here have yo# %ot i$formatio$ a/o#t home loa$s schemeO

155

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3>hec- list4ZZZZZZZ&& Ne*spapers [ \ Ma%aAi$es [ \ Hoardi$%J/a$$ers [ \ Ford of mo#th [ \ A$y other 3please specify4&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 1C& Fhat pro/lems did yo# face *hile %etti$% home loa$sO a& !ac- of -$o*led%e /& Proced#ral delays a$d $o$ cooperatio$ c& A$y other 3please specify4 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 1@& Did yo# face a$y pro/lem after sa$ctio$ of loa$O YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY 1D& Fhat s#%%estio$s do yo# *a$t to %ive for improveme$ts i$ home loa$s SchemeO YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

T7ANKS

159