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

A PROJECT REPORT

ON

³Analysis of Housing Finance schemes of HDFC Bank, ICICI Bank, PNB & SBI Bank´

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION ADMINISTRATION IN

Dr. C. V. RAMAN UNIVERSITY KARGI ROAD, KOTA, BILASPUR

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

GUIDED BY:

SUBMITTED BY:

SS. SWATI JAIN MAM ECTURER (M.B.A.)

SMITA JAISWAL ROLL NO. 3950593 395059 3

DEPARTMENT OF COMMERCE & MANAGEMENT 

SESSION 2010-2011

1

HOD CERTIFICATE This is to certify that smita jaiswal is a bonafide student of this institution studying in IV semester, MBA program of DR C.V RAMAN UNIVERSITY KARGI ROAD KOTA KOTA BILASPR E (C.G) bearing Roll No- 3950 593

This is to certify that her project work entitled has ³Analysis

Bank, ICICI Bank, PNB & SBI Bank ´

of Housing Finance schemes of HDFC

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

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

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

DATE- 15 .04 .11 PLACE- BILASPUR

H.O.D Mr. VIVEK BAJPAI

2

GUIDE CERTIFICATE

This is to certify that Ms smita jaiswal bearing Roll No - 3950593, who is the student of IV semester of MBA program from DR C.V RAMAN UNIVERSITY, UNIVERSITY , has undertaken a project title, has³ has ³ Analysis

HDFC Bank, ICICI Bank, PNB & SBI Bank ´

of Housing Finance schemes of 

under my guidance.

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

DATE- 15. 04. 2011

PLAC-BILASPUR

Project

Guide

Ms SWATI JAIN

3

I S MITA MITA JAI SW   AL of IV semester of MBA, here declare that project entitled  ³ Analysis SW  of Housing Finance schemes of HDFC Bank, ICICI Bank, PNB & SBI Bank

´

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

Place: - BILASPUR  Date: -

SMITA JAISWAL (Roll no. 3950593) IV semester MBA

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

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

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TABLE OF GRAPHS

Sl.No

List of Tables and Graphs

Page No.

1

If you are make or purchase your own home than are you like to take facility of Housing Finance?

49

2

Which Housing Finance Bank you chose ?

50

3

Are you aware all terms and conditions of home

51

loans?

4

How do you come to know about the home loan

52

schemes of this bank?

5

Your bank offer which type of services? According to you which of the following banks

53 54

 provides optimal or economical interest rate? Which feature of your scheme satisfied you to

55

take it ?

9

How would you rate the overall quality of your  relationship with banks of housing finance considering all of your experiences with them? Would you say it is««.

5

On a scale of 1 to 5 where 1 represents ³extremely ³extremely dissatisfied´ and 5 represents ³ extremely satisfied´ How would you rate your  level of satisfaction with banks of housing finance in regards to price?

5

  

10

In the case of suitability of EMI, which bank  would you prefer?

5

11

Are you satisfy by the time taken in sanctioning

59

the loan?

12

And, IN case of long term which bank would

0

you choose?

13

Have you face any difficulty during taking the loan?

1

14

2

15

Are you agree with the after home loan services  provided by your bank are best as compare to other bank? On a scale of 1 to 5 where 1 represents represent s ³ extremely dissatisfied´ and and 5 represents ³ extremely satisfied´, Did you think the  processing system is?

1

How likely are to recommend which bank of 

4

3

housing finance to a friend or relative ?

1

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

1

According to you , which positive aspect is  playing more significant role in success of  housing finance banks?

19

Any suggestion that you want to

5

give«««««««

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CHAPTER- 1 Page no

INTRODUCTION

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1.1.1 INTRODUCTIO N OF HOUSING FINANCE

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1.1.2 INSTITUTIONAL FRAMEWORK

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1.1.3 STRUCTURE OF HOUSING FINANCE INDUSTRY 1.1.4 HOME LOAN TYPES

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

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1.1.1 INSTITUTIONAL FRAMEWORK 

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

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1.1.2ST 1.1.2ST

T

E OF HOUSING

FINANCE FINANCE INDUST INDUST Housi

i

 Informal Sector 

Formal Sector 

 Household  savings

 Disposal of   Existing   properties

 Banking 

Central  Govt.

 State  Public Commercial  Govt.  Authorities  Banks

Cooperative  Banks

 Borrowings from  friends, relatives and money lenders

 Non-Banking 

Other   Banks

 HUDCO

 Non-Banking  Finance Companies (NBFCs)

 House Finance Companies (HFCs)

 Non-Banking   Housing  Finance Companies

 Insurance  LIC/GIC 

 Specialized   Institution  HDFC 

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¢ 

1.1.3HOME LOAN TYPES Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home home loan provider, you need to consider certain factors related to  property that you are interested in buying and also about the salient features offered  by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India. And the most important thing is you should know about each and every term related with Home Loans before applying for a Loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property. pr operty. You can take different types of home loans like Bridge Loans, Home construction Loans, Home Equity Loans, Home Extension Loans, Loa ns, Home Improvement Loans, Land Purchase Loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs. y

y

y

y

y

y

y

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

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1.2

INDUSTRY PROFILE PAGE NO

1.2.1 HOUSING FINANCE IN INDIA INDI A

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1.2.2 TAX BENEFITS ON HOME LOAN

10-11

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HOUSING FINANCE IN INDIA The Home loan sector in India is the pi-vital role player in the growth of the real estate scenario in India. With tax incentives given gi ven to the housing finance sector in the t he annual budget of 2001, transactions related to buying and selling of residential  properties increased considerably and was much higher as compared to previous years. Since the new class of buyers are relatively younger set of customers who are more aware about legal documentation and approvals, buyers are now more 'end-users' rather than investors; the property market in India undergoes transformation to align itself with global standards with an increased emphasis on quality & cost control and documentation methods. In the current economy economy of India, the real estate sector has the maximum propensity to generate income and demand for materials, equipment and services. It can be said that housing finance companies were formed for co-existing co-existing with buyer's requirements of housing loans for investing in properties. Home loans are made available by financial institution inst itutionss to both Indian and NRI customers at floating and fixed rate of interest int erest and also at attractive EMI options. y y y y

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

y

y y y

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

There are a few documents which the finance companies require for setting up Salaried Employee

Self-employed

The latest salary slip showing statutory deductions

Computation of income for the  previous two years, certified  by a Chartered Accountant

Form 16 (showing tax deducted at source by employer)

Profit & Loss Account and Balance Sheet for the previous two years, certified by a Chartered Accountant

Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license

Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license)

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

CRITERIA FOR ELIGIBILITY OF HOME LOANS.

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

Major Home Loan Providers Banks & State Bank of India, Corporation Bank, Punjab Public Sector   National Bank, Central Bank, Dena Bank, Housing Allahabad Bank, Bank of Maharashtra, Mahara shtra, Bank of  Finance Baroda Housing Finance, Can Fin Homes, GIC Companies Housing Finance, LIC Housing Finance, PNB Housing Finance, SBI Home Finance, Centbank  Cent bank  Home Finance, HUDCO, LIC, etc. Financial Institutions

HDFC, ICICI Ltd, Citibank, HSBC, StandardChartered- Grindlays, IDBI Bank, etc

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SWOT ANALYSIS

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

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

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

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

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

y

y

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

y

y

y

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

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

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

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CHAPTER-2 PAGE NO.

RESEARCH DESIGN 2.1 PROBLEM STATEMENT

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2.2 OBJECTIVE

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2.3 SCOPE OF STUDY

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

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

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OBJECTIVE

o

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

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SCOPE OF STUDY

o o o o o o

This study is analysis of housing finance schemes of HDFC, ICICI, PNB AND SBI  banks. It is helpful in analyzing the home loan Schemes service provided to t he customer and their comparison. comparis on. This study was conducted by the researcher in BILASPUR, because of constraints of time and money study could not be extended to other cities. As BILASPUR being a popular and among the good cities of India is a good market of financial products & also here customers of different classes like  business segment, service segment, and professional segment are in excess. Since the report aims at finding the potential for financial financia l products at BILASPUR itself taking into consideration certain limits and problems, the area was chosen on the basis of  coverage of product no. of respondents

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CHAPTER- 3 Page no. 3.1 A COMPNY PROFILE OF FOUR BANKS WHICH PROVIDE HOUSING FINANCE:3.1.1 3.1.2 3.1.3 3.1.4 3.1.5

HOME LOAN OF HDFC BANK  SWOT ANALYSIS HOME LOAN OF PNB BANK  SWOT ANALYSIS HOME LOAN OF SBI BANK  SWOT ANALYSIS HOME LOAN OF ICICI BANK  SWOT ANALYSIS

3.2 COMPARE HOUSING LOAN OF DIFFERENT

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

BANKS

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

ICICI BANK  ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$ 77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine months ended December 31, 2008. The Bank has a network of 1,416 branches and about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset ass et management. The Bank currently current ly has subsidiaries in the United Kingdom, Russia and Cana da, branches in United Unit ed States, Singapore, Bahrain, Hong Kong, Kong, Sri Lanka, Qatar and Dubai International Internat ional Finance Centre and representative offices in United Unit ed Arab Emirates, China, South Africa, Afr ica, Bangladesh, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India L imited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of  shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the  NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors investors in fiscal 2001 and fiscal 2002. 2002. ICICI was formed for med in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. industry. The principal objective was to create a development development financial financia l institution for   providing medium-term and long-term project financing to Indian businesses. businesses. In the 1990s, 1990s, ICICI transformed its business from a development financial institution offering only project finance t o a diversified financial services ser vices group offering a wide 23

variety of products and services, servic es, both directly and through t hrough a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of t he emerging competitive scenario in the Indian banking ba nking industry, industry, and the move towards universal banking, the managements of ICICI and ICICI Bank for med the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for   both entities, and would create t he optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities opportunities for  earning fee-based income and the ability to participate in the payments system and  provide transaction-banking services. The merger would enhance va lue for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments,  particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank  approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Li mited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated integrat ed in a single entity.

PUNJAB NATIONAL BANK  With over 37 million satisfied customers and over 4589 offices, PNB has continued to retain its leadership position among the nationalized banks. The bank enjoys strong fundamentals, large franchise value and good brand image. Besides being ranked as one of India's top service brands, PNB has remained fully committed to its guiding  principles of sound and prudent banking. Apart from offering banking products, the  bank has also entered the credit card & debit card business; bullion business; insurance business; Gold coins & asset management business, etc. Since its humble beginning in 1895 with the distinction of being the first Indian bank  to have been started with Indian capital, PNB has achieved significant growth in  business which at the end of March 2008 amounted to Rs 2,85959 crore. Today, with assets of more than tha n Rs 1,99,000 1,99,000 crore, PNB is ranked ra nked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (4589 including 322 extension counters).During the FY 2007-08, with 43% share of  low cost deposits, the bank achieved a net profit of Rs 2,049 crore, maintaining its number ONE position amongst its peers. The bank¶s Return on Assets at 1.15% was also the highest. During the FY 2007-08,its¶ ratio of pr iority sector credit to net bank  credit at 44.11% & agriculture credit t o net bank credit at 18.94% was also higher  than the respective national goals of 40% & 18%. PNB has always looked at technology as a key facilitator to provide better customer  service and ensured that t hat its µIT strategy¶ follows the µBusiness strategy¶ strategy¶ so as to arrive 24

at ³Best Fit´. The bank has made rapid strides in this direction and achieved 100%  branch computerisation. A pioneering effort of the bank in the use of IT is the implementation of Core Banking Solution (CBS) which facilitates ³any ti me, any where´ banking. PNB has implemented CBS in 3503 service outlets at around centers to facilitate "anytime, anywhere" banking to its clients. The bank has also been offering Internet banking services to the customers of CBS branches like booking of  tickets, payment of bills of utilities, purchase of a irline tickets etc. Towards developing a cost effective alternative channels of delivery, the bank has installed more than 1516 ATMs and entered into ATM sharing arrangement with other banks & IDRBT, making available a pool of additional 21,500 ATMs throughout the country to its customers. Backed by strong domestic performance, the bank is planning to realize its global aspirations. aspirations. In order to increase its international internat ional presence, the bank has already set up representative offices at Almaty (Kazakhstan), Dubai (UAE) & Shanghai (China) ; a  branch at Kabul (Afghanistan) and a subsidiary at London (UK) and a branch at Hongkong. Hongkong. Work on assessing potential pote ntial at other international centers is progressing. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal, with 20 per  cent equity participation. With PNB¶s management, EBL has become one of the leading banks in Nepal. As a tribute to its consistent business growth, improved assets & attractive returns to shareholders in the joint venture, PNB has won µBank of the Year¶ Award in Nepal (2006) by µThe Banker¶, a publication of the London based Financial Times. Amongst Top 1000 Banks in the World, µThe Banker¶ listed PNB at 255th place. Further the leading international Credit Rating index provider, Standard & P oor¶s (2006) listed PNB, amongst the 300 World companies & 7 Indian companies, which are expected to emerge as challengers to the world¶s leading blue chip companies. Financial Performance: Performance: Punjab National Bank continues to maintain its frontline position in the Indian  banking industry. In particular, the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches, operating and net profit in the year 2006-07. The performance highlights of the bank in terms of business and  profit are shown below: below: (Rs Crore) Parameters Para meters March05 March06 March07 CAGR (%) Gross Profit 2404, 2917, 3231, 15.91   Net Profit 1410, 1439, 1540, 4.50 Deposits 103167, 119685, 139860, 16.43 Advances Advanc es 60413, 74627, 96597, 26.45 Business 163580, 194312, 236457, 20.23 Recognition: Recognition: In recognition of its efforts in various areas, the bank has received various recognitions.  National Award for Excellence in lending to SSI and tiny sector for the year 2004-05 and 2005-06 respectively. Golden Peacock National Nat ional Training Award for t hree successive years (2004, 2005 2005 & 2006). 2006). Golden Peacock Award A ward for Excellence in Corporate Governance for the year  25

2004-05 and 2006-07 by In stitut of  Di tors (IOD). SKOC SKOCH C all nger  Awar d for  C ange Management anagement for  t e year  2005-06 in ecogniti gnition of  t e bank¶s services towar ds uplif t ment ment of  t e weaker s ections of  t e r ec r  secti SKOCH C allenge llenger  Awar d ± 2006-07 20 06-07 for  ca pacit acity y build ilding for  t e society and SKOC Far me mers¶ Tr aining College llege initia itiative Best IT Team of  t e Year  (2005-06) by IDRB ID RBT. T. Amit Am ity y Corpor ate Excell Excellence ence Awar d, d, 2006-07

SBI

BANK 

State Bank of  Indi India (Hindi ndi: ê÷íâùì  Ý (SBI) is t e lar ge gest stateê÷íâùì  ÝÝ  é éÓ)  (SB nancial services com pany in Indi India. The bank t bank tr ace aces its ancestr y owned bank ing and f inanci to Br iti itish Indi India, through the Im per ial Bank of  Indi India, to the foundi nding in 1806 of  the Bank  of  Calcutta, tta, mak ing it the oldest commer cial bank i bank in the Indi Indian Su bcontinen tinentt. Bank  of  Madr as mer ged ged into the other  two  pr esidency bank s, Bank  of  Calcutta tta and Bank  of  Bombay to for m Im per ial Bank of  Indi India, whi which in tur n became State Bank of  Indi India. The g over nment nment of  Indi India na nationali nali ed the Im p er ial Bank of  Indi India in 1955, wit with h the R eserv e Bank  of  Indi India tak ing a 60% stake, and r enamed enamed it the St State Bank of  Indi India. In 2008, the gover nment nment took over  the stake hel held by the R es erve Bank  India. of  Indi SBI  provides a r ange ange of  bank ing  products throu gh its vast net networ k  k of  br anche anches in Indi India and overseas, incl ncluding  products aimed at at non-r esident dent Indi Indians(NR  (NR Is). The St State Bank Group, wit with h over  16,000 br anche anches, has the lar ge gest bank ing br anch anch net networ k i k in Indi India.It a.Its also consider ed ed as the best bank even abroad ,ha ving arou nd 130 br anch nc hes ncluding 1 ADB] ADB]and and one of  the lar ge gest f inanci nancial institution in the wor ld . overseas [incl With ith an a sset bas e of  $352 billi billion and $285 billi b illion in de pos its, it is a r egi egional nal  bank ing behemot h. It It has a mar ket ket shar e among Indi Indian c ommer cial bank s of  about 20% in de posits and advances, and SB SBI accounts for  almost one-f if th of  the nati nation's [2] [2]

loans.

The St State Bank  of  Indi India is the 29t 29th most r e puted com pany in the wor ld accor ding [3] to For  bes.[3] Also SBI is the only bank t bank to get get f eat eatur ed ed in the coveted "top 10 br and ands of 

Indi India" list in an annual survey conducted by Br and and Fi Finance and The Ec onomic Times in 2010.

[4] [4]

The St State Bank  of  Indi India is the lar ge gest of  the Big Big Four of  India, al along wit with h IC ICICI our  of  Indi [5] Bank, Pun jab  jab Nati National nal Bank and HDFC DFC Bank² it its mai main com petitors.[5] and" and"

GUINNESS BOOK OF WOR  WOR  D R ECOR D " that hat 56 milli million tr an ansacti actions ha ppeni ening all over  the wor ld is def inite itely an achi achievement ement  per  day all §  

6

3.1.1 HOME LOAN OF HDFC BANK  Features y

y

y y

y

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

Home Loan : Loan Purposes One can apply for Power Home for the following purposes :



Purchase of  Flat, row house, bungalow from developers



Existing freehold properties



Properties in an existing or proposed co-operative housing society or apartment owner's association First Power of Attorney purchases in Delhi for DDA flats allotted allott ed before 1992.



Home Loan: Eligibility  Sal   Sal ar  ar i  i  ©

Sel  Sel     

  

 A e

21-60 years

25-65 years

 Income

 Income cr it  it er  er i  i a not  not   provi   provi  ed 

 Income cr it  it er  er i  i a not  not   provi   provi ded  ded 

  

  

 Job ence  E  per i  i ence

 Job exper i  i ence ence not  not   Job exper i  i ence ence not  not prov provi  i ded  ded   provi   provi ded  ded 

 Resi   Resi dence dence  Proof 

 Resi   Resi dence dence proof not  no t   provi   provi ded  ded 

  

 Resi   Resi dence dence proof not  no t   provi   provi ded  ded 

2

¨  

Home Loan: Loan Amount Limits on home loan y

Minimum - Rs 1 lac

y

Maximum - Rs 50 lacs Margin

y

20% in the case of home loans

y

25% in case of improvement or renovation loans

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

Salaried Customers

Self Employed Professionals

Self Employed Businessman

Application form with photograph

Application form with  photograph

Application form with  photograph

Identity and Identity and Residence Proof Proof Identity and Residence Residence Proof  Residence Proof  Latest Salary-slip

Education Qualifications Certificate and Proof of   business existence

Education Qualifications Certificate and Proof of   business existence

Form 16

Last 3 years Income Tax returns (self and business)

Business profile

Last 6 months  bank statements

Processing fee cheque

Last 3 years Profit /Loss and Balance Sheet

Last 3 years Income Tax returns (self and business) business) Last 3 years Profit /Loss and Balance Sheet

Last 6 months bank  statements

Last 6 months bank  statements (self and business)

Processing fee cheque

Processing fee cheque

2

  

Home Loan: Interest Rates & Charge

 Applicable Rates ont  l   y Rest  Rest  Bas  Basi  i s) s) (M ont 

  Fixed rates%

Variable rates%

 Basis%  RPLR

Upt  Upt o and i  and i ncl  ncl  d i  i ng ng Rs 30 l acs acs

11.50

9.75

RPLR - 5.75

 Rs.30.01 l acs acs t o Rs.75 l acs acs

11.50

10.00

RPLR - 5.50

Over Rs.75 l acs acs

11.50

10.25

RPLR - 5.25

  

  

The above rates are subject to change without notice

.

Home Loan: Terms and Conditions Repayment y

y

y

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

Security

Security for the loan is a first mortgage of the property to be financed,

normally

by

way

of 

deposit of title deeds and/or such other collateral security as may be necessary. Interim security may be required, if the property is under  construction.

29

Disbursement

The loan will be disbursed in full or in suitable installments, taking into account the requirement of funds and progress of construction, as assessed by the Bank directly t o seller or builder or local development authority or supplier of materials etc. Processing charges or admission fee

Processing fee equivalent to 0.5% of the loan amount (applied for) will be collected along with the application form (ta xes as applicable). Penalty for early closure - Nil Other Conditions

Bank reserves the right to reject any a ny application without assigning reasons thereof  The applicant will undertake to inform the Bank as and when there is a change in address or employment The terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion.

Home Loan: Fair Practice Code For Lenders As directed by the Reserve Bank of India, vide circular D BOD.No.Leg.No. BC.65/ 09.07.005/2006-07 dated March 6, 2007; the Bank has adopted modified Fair  Practice Code for lenders as approved by the Board of Dir ectors. The salient features of the same are: are: i) Applications for Loan

In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any a ny payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories cat egories of loans, irrespective of the amount of loan sought by them. ii) Processing

a. The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.

30

 b. The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant. c. For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application a pplication without without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for r ejection within one month. iii) Loan Appraisal and Terms and Conditions

a. The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.  b. All the terms and conditions and other caveats will be duly communicated by an authorized official of the Bank to the customer in writing. c. The acceptance of the customer will be obtained on the sanction letter with the customer's signature under under the caption A copy of the loan a greement along with all the enclosures quoted in the loan agreement agree ment will be furnished to the customer at the time of issue of the sanction letter. d. The sanction letter / loan agreement will clearly stat e that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the t he discretion of the Bank. i. ii.

Drawings beyond the drawing power / sanctioned limits. Honoring of cheques issued for the purpose other than specifically stipulated in the sanction.

iii.

Drawings in an account once it is classified as NPA.

iv.

 No drawings will be allowed in case of non-compliance of the terms and conditions  by the borrower.

v.

Meeting further requirements of the borrower on account of growth in business will  be subject to proper review of the t he credit limits. iv) Disbursement of loans including changes in terms & conditions

31

a. The disbursement will be done immediately on compliance of a ll the terms and conditions of the sanction by the borrower and the branches need not r efer to the sanctioning authority for disbursement.  b. Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes. c. Any changes in interest rate rat e and charges will be effected only prospectively after  giving due notice to the borrower. v) Post disbursement supervision

a. The post disbursement supe s upervision, rvision, such as submission s ubmission of periodical reports and  periodic inspection, inspection, will be stipulated at the time of issue of the sanction l etter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection.  b. The Bank will issue notices to the borrowers in advance in case cas e the Bank decides to recall the advance / accelerate the payment / accelerat e the performance under the loan agreement. Or seek additional securities. c. The Bank shall release all securities on receiving payment of loan. However, the Bank  may decide to exercise the right to t o set off any legitimate right or lien for any other  claim against borrower. In case the Bank decides to retain the security, the borrower  will be notified about the remaining claims and the t he documents under under which the Bank  is entitled to retain the security till the relevant claim is paid / settled v) Others

a. The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks a nd book debts, debts, and scrutiny of QIS statements.  b. In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the  borrower and initiate action to protect its interest. c. While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending. 32

d. In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power. e. In the case of receipt of request for transfer of borrowal account, either from the  borrower or from other banks / FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request. vi) Grievance Redresser

Though the sanction of the loans will be at the sole discretion of the Bank, borrowers will have an opportunity to appeal against the decision of the Bank's functionaries. Any such grievance received from the borrower will be heard and disposed of by the next higher higher authority. For t his purpose the following review structure is available a vailable to the borrower.

SWOT ANALYSIS OF HDFC BANK  Strengths : -

eakness : ±  W eakness

1.

Right strategy  trategy fo forr the right produc oductts.

1.

Somee ga Som gaps ps in range fo forr certain sectors.

2.

Superi Superio or cust customer omer servic ervice  v s. s. competit competito ors.

2.

Custtom Cus omer er servi ervicce sta taff  ff nee need d training training..

3.

Great Bran rand d Image Image..

3.

Proc oceess ssees an and d s y ste tems, ms, et etcc

4.

Produc oductts have req requ uire ired d acc ccre red ditati itatio on.

4.

Manage anagem ment co co ver  ver in insuff  suff icient ient..

5.

High degree of cust custom omer er sati atisf  sf acti tio on.

5.

Sectoral gr grow  ow th th is co con nstraine trained d b y  low  une nemp mpllo y ment level levelss an and d competiti competitio on fo forr sta taff  ff 

Opportunities : ±

Threats

:-

1.

Prof it it margin arginss w ill ill be good.

1.

Legi egisslati latio on cou coulld imp mpa act.

2.

Coulld exten Cou extend d to o ver  verssea eass br broadly .

2.

Great ri rissk  k inv  inv olve lved d

3.

Ne w spe speciali ialisst app ppli liccati atio ons.

3.  V ery  ery  high comp competiti etitio on prevailing in the

4.

Coulld seek  Cou seek b better cus custtom omer er deal eals. s.

5.

Fast-tra t-tracck  career devel evelopm opment ent oppo opport rtu unitie nitiess

indus in dustry  try . 4.  Vu  Vulnera lnera b  ble le to rea reacctive atta attacck  b y  maj ajo or

on an in indus dustrytry- w ide basis.

competit comp etito ors. 5.

Lack  of  in inf  f ras rastr truc uctture in rural area areass coul could con co nstrain inve invesstment

33

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

Extent of loan Individual

For construction/purchase of house/ flat f lat :- 75% of the cost of construction of house or purchase of house/ flat . For carrying out r epairs/ renovation/ renovation/ additions/ alterations : - 75% of the estimated cost subject to maximum of Rs. 20lacs Loan upto Rs.20 Lacs for purchase purcha se of Land/Plot. Loan is available a vailable maximum upto Rs.2 Lacs for furnishing.

Security y y

y

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

34

RATE OF INTEREST INTEREST RATES ON ADVANCES UNDER RETAIL LENDING SCHEMES st

(effective from 1 January 2009 ± BPLR 12.00%) I. a Housing Finance Fixed Option for loans Floating Option for loans to Individuals including NRIs / Flexible Housing scheme / existing Fin Basket a/cs For repayment period i) Upto 5 years ii) Above 5 & upto 10 years iii) Above 10 & upto 20 years iv) Above 20 yrs & upto

Upto 20 lac

Above lac

20

9.25 10.25

10.25 10.50

9.00 9.50

Above lac 10.00 10.00

10.75

11.00

9.75

10.25

11.25

11.50

10.00

10.50

Upto 20 lac

20

25 yrs.

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

BPLR i.e. 12%

BPLR  i.e. 12%

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

35

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

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

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

SWOT ANALYSIS OF PNB STRENGTH

WEAKNESS



Wide netwo twork 



Casu asual behav ehavio iou ur 



Larg Largee numb number er of custo custome mers rs



Corru Corrupti ption on and red tapism tapism



Fast Fast adap adaptab tabil ilit ity y to techn technol olog ogy y



Slow Slow deci decisio sion n makin making g due to large large



Brand and ima image

hierarchy 

High gros ross NPA

OPPORTUNITIES

THREATS



Home Home to hom homee ban bankin king g servi service cess



Dive Diversif rsifica icatio tion n toward towardss othe otherr field fieldss

 Stiff   competition from SBI and other   private players



Globali alizatio tion

 Sales  promotion is very  poor other bank.

3

  

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

SBI Home Loans Loans Advantage y

y

y

y

y

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

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

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

3

  

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

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

Margin

Loan Amount

Margin (Min.)

Maximum (Max.)

Upto Rs. 20 Lacs

10%

90%

Above Rs. 20 Lacs.

20%

80%

LTV

Ratio

3

  

Rate of Interest a) SBI Easy Home Loan (Upto Rs.30 Lakh) p.a.)

  Name Facility Type Loan amount Interest Rate Ist Year

(Base Rate: 8.25%

SBI Easy Home Loan Term Loan or OD as in SBI MaxGain. (OD facility will be available for loans above a bove Rs.5 Rs.5 Lacs.) Upto (and including) Rs.30 Lacs Card Rate applicable for the tenor of the loan ± 1.50% above Base Rate, Present effective rate being 9.75% p.a. 1% discount over Card Rate, present effective rate being 8.75% p.a. 0.25% discount over Card Rate, present effective rate being 9.50% p.a. Card Rate

2nd and 3rd year  4th year  onwards  No Fixed Interest Inter est Rate option.

 b) SBI Advantage Home Loan (Above Rs.30 Lacs and upto Rs.75 Lacs) Lacs )   Name

(Base Rate : 8.25% p.a.)

SBI Advantage Home Loan (Above Rs.30 Lacs and upto Rs.75 Lacs)

Facility Type Loan amount Interest Rate

Term Loan or OD as in SBI MaxGain.

Ist Year

1.25% discount over Card Rate, present effective rate being 8.75% p.a. 0.50% discount over Card Rate, present effective rate being at 9.50% p.a.

2nd and 3rd year  4th year  onwards

For Home Loans above Rs 30 lacs and upto Rs. 75.00 Lacs Card Rate applicable for the tenor of the loan ± 1.75% above Base Rate, Present effective rate being 10.00% p.a.

Card Rate

 No Fixed Interest Rate option.

39

c) SBI Premium Home Loan (Above Rs.75 Lack) (Base Rate: Rate : 8.25% p.a.) ame S  Premi  m Home Loan ±  Above  N ame  B I Premi   Above Rs.75 Lacs F acilit  acilit   y Term Loan or OD as i n S   B I  M  axGai n upt  upt o Rs.1 C rore. rore.  M axGai  Type  Loan F or or Home Loans above Rs 75.00 l acs acs amount  amount   Int   Int erest  erest  ard Rat  Rat e appli  appli cabl  cabl e over  t  e t enor enor of  t  e l oan oan i s 1.75% over  C ard rat  rat e t  e Base  Base Rat  Rat e, e, present  present effec effecti  ti ve ve rat  rat e bei  bei ng ng 10.00% p.a.   

!  

!  

!  

C oncessi  oncessi ons ons i ncl  ncl ud  ud i  i ng ng d i  iscreti  s  creti onary onary avail  avail abl  abl e over t  over t  e t enor enor of t  of t  e l oan oan !  

 N o

concessi  concess i ons ons will  be

!  

Fi   xed Int  Int erest  erest Ra Rat  t e opti  opti on. on.

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

Security Equitable  property.

mortgage

of

the

Process fees Loan Amount

Processing Fee

Upto Rs.5 Lac

Rs.1000/-

Above Rs.5 Lac and upto Rs.10 Lac

Rs.2000/-

Above Rs.10 Lac and upto Rs.20 Lac

Rs.5000/-

Above Rs.20 Lac and upto Rs.50 Lac

Rs.7,000/-

Above Rs.50 Lac and upto Rs.1 Cr

Rs.8,000/-

Above Rs.1 Cr and upto Rs.5 Cr

Rs.10,000/-

Above Rs.5 Cr

Rs.20,000/-

40

NOTE 1) 75 % of the processing fee may be refunded in the following cases:

(a) Rejection of loan application a pplication on account of unsatisfactory pre-sanction survey report. (b) Rejection of loan a pplication on account of unsatisfactory legal/valuation reports. In cases where applications are sanctioned or reject ed after complete loan processing, proc essing, fee will not be refunded. 2) Actual charges for the following will be payable by the customer in addition to the processing fee:

a) Pre-sanction (i) Advocate's fee for property search a nd the title investigation report. (ii) Valuer's fee for valuation report.  b) Post-sanction (i) Stamp duty payable for Loan agreement & mortgage. (ii) Property insurance premium.

41

SWOT ANALYSIS OF SBI Strengths

Weaknesses

y

Brand name

y

 Minor hindrances

y

Market Leader 

y

Hierarchical management

y

Wide Distribution Network 

y

Lags modernization modernization

y

Government Government Owned O wned

y

Diversified Portfolio

Opportunities y

y

Threats

Merger of associate banks with

y

 Advent of MNC banks

SBI

y

Private banks venturing into

Opportunities Opportunities for public sector   banks

y

 New Branches and ATM's

y

Expansion on Foregin soil

the rural y

Employee Strike

42

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

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

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

y y y y

y

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

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

y

y

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

43

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

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

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

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

44

Balance

Transfer

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

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

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

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

45

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

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

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

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

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

"  

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

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

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

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

4

#  

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

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

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

4

$  

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

Disbursement Documents Property documents (as per P&D for respective states and as asked by empanelled lawyers for individual cases) Facility Agreement Disbursal Request Form Cheque Submission Form ± for Pre EMI and EMI cheques ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for EMI / Pre EMI Personal Guarantor¶s Documents (PG F orm, Photograph, Photograph, Identity Proof, Address Proof, Signature Verification and Income documents, if applicable)

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

49

Char ge ges

Home Loans

Loan Processing Char ge ges

Char ge ges

/

R enewal enewa l

0.5% to 1%

Pr e payment ayment Char ge ges

2% on the  pr inci nci pal anding on full outstandi ayment  pr e payment

Char ge ges for  late  payment ayment

2%  per  month

Char ge ges for  changi changing from f ixed to f loating ting 1.75% on  pr inci nci pal anding r ates of  inter est outstandi Char ge ges for  changi changing from f loating ting to f ixed 1.75% on  pr inci nci pal anding r ates of  inter est outstandi Cheque Swa p Char ge ges

R s. 500/ 500/-

Document ment R etr ieval Char ge ges

R s. 500/ 500/-

Cheque bounce char ge ges

R s. 200/ 200/-

 Note : Service Tax and other  taxes, levies, et etc. a pplicab licablle as  per  pr  iling r ate will will be  pr evailing char ged ged over  and above these char ge ges.

Repayment Terms of your Home Loan In our  endeavor  to make tak ing a home loan an easy  process for  you, we at at ICICI Bank Home Loans addr ess all your  quer ies about the r e payment ayment ter ms of Ho of  Home Loans with ith r esp ect ect to tenur e, e, home loan EM EMIs, met methods of  home loans EMI  payment ayments and  pr e-EM e-EMI inter est. What i the repayment tenure? How i the loan repai repai ? What i an E

I?

When does the repayment start? How is the E

I pai paid?

What i a PDC bounces? What is pre-E pre-E

I interest?

When do I pay PE PE

Is?

What is the repayment tenure?

R e payment ayment tenur e is the tenur e for  the nu mber  of  year for  which the loan get gets r  for  whi anctioned. We off er  you a wi wide r ange ange of op sancti of  options for  the tenur e of  the loan. You can take a home loan for up each the age of  65 years or  for  up to 25 years prov rs  provided you do not r each with hin that hat  per iod r etir e wit How is the loan repai repaid?

All loan r e payment ayments ar e done via equated monthly installmen llmentts (EM (EMI). %  

&  

What is an EMI?

An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest  payment When does the repayment start?

EMI payments start from the month following the month in which the full disbursement has been made How is the EMI paid?

The EMI is to be paid every month through post-dated cheques (PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36 PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, we provide the flexibility of dating the cheques for the 10th of the month. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit. What if a PDC bounces?

In the case of a bounced cheque or delayed payment, pa yment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 - 7 working days. What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the t he EMIs would commence.

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

51

SWOT ANALYSIS OF ICICI BANK  Strengths y y y y

Online services Advanced infrastructure Friendly staff  12 hrs. banking services

Opportunities y

y y

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

Weakness y y y

High bank services charges Less credit period High interest rates

Threats y y y y

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

52

COMPAR E HOUSING LOAN OF DIFFE DIFFER ENT BANKS Loan Provider 

R ates of  Int Inter est

Loan Amount

Loan Dur ation

9.5%

100000 2000000 100000 2000000

1 - 5 Yrs

9.75%

10000 1500000

1 - 5 Yrs

9.75%

100000 2000000

1 - 5 Yrs

10.5%

100000 5000000 100000 20000000 100000 10000000 100000 10000000 100000 2000000

1 - 5 Yrs

100000 10000000 200000 10000000 100000 2000000

1 - 5 Yrs

11.5%

100000 10000000

1 - 5 Yrs

12.0%

100000 10000000

1 - 5 Yrs

9.5%

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

1 - 5 Yrs

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

1 - 5 Yrs 1 - 5 Yrs

'  

(  

CHAPTER -4 Page no.

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

47

48

54

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

y

Sampling plan

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

y

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

Sources of data

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

y

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

55

LIMITATION

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

5

)  

CHAPTER -7 Page no

 AT  T   A A  A  A N  A LYSIS  A  A N  D I  N T  T E     RPRIT   ATIO  A TIO N  50-68 7.1 D A

5

0  

1) If  you ar e make or  pur  chase your o like  pur cha our  own home than a r e you like to take f acilit acility y of Hous Finance? of  Housing Fi . ESP 3  

2  

3  

4  

3  

5  

YES

2

6  

E 2  

7  

PE 5

7

@  

7

B

3

 A

D  

7  

2  

7  

 A E 9  

A  

6%

C  

@  

1  

E  

08

E

7 %

3  

2  

8  

B

E

E  

%

74%

F 

07 G 

06 F 

05 F 

04

OPTION

G 

03 G 

26%

PERCENTAGE

02 F 

01 F 

0 YES NO

I

p

i

The above column char t de picts that hat 74%  persona r e tak ing home loan and only 26% ar e not tak ing home loan.

1  

8

2) If  yes, Whi Which Housing Fi Finance Bank you chose? %

ICICI

NO. of  ndent r espondent 9

24%

DFC HDFC

14

38%

PNB PNB

6

16%

SBI

7

19%

OTHER 

1

3%

TOTAL

37

100%

38%

40% 3 % Q  

30%

24%

2 %

19%

P  

1 %

20%

R  

1 % P  

10% P  

%

0% ICI CI

HDFC

PNB

SBI

%

I

p

i

Total number  of r  ndent was 37 of  r espo ndent 24%  person is chose IC ICICI bank  38%  people ar e chose HDFC DFC bank  16%  person is chose PNB PNB bank  And, 19%  people ar e chose SB SBI bank 

H  

I  

3) Ar e you awar e all all ter ms and conditi nditions of  home loans? NO. 24

YES   NO TOTAL 37

X

Y  

% 65% 13

35% 100%

%

0%

W  

V  

U  

0% 3 %

0%

Y  

40% 30% T  

0%

10%

0% YE S

NO

%

Interpretati Interpretation

Total Nu mber  of  R espondent ndents was 37. 37. Many of  p all ter ms and conditi nditions of  home loan i.e. 65%.  perso ns know all 35%  perso ns had not know  prop er ly about all ter ms and conditi nditions

6

S  

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

NO.

%

 NEWSPAPER   NEWSPAPER 

8

22%

TELEVISION

6

16%

INTER  INTER   

NET

OTER  OTER R  R ESOURC ESOURCES ES TOTAL

11 12

30% 32%

37

100%

30%

3 %

3 % b  

a  

30% b

b

b  

a  

b  

%

% 1 %

0%

c  

1 % a  

10% a  

%

0% NEWSPAPER

TELEVISION

I NT NTE RN RN ET ET

O TE TE R RESOURCES

%

Interpretati Interpretation

Total Number  of  R espondent ndents was 37 22%  perso ns came to know from newspa per  16%  perso ns came to know from television 30%  perso ns came to know from inter net net 32%  perso ns came to know from other r  ce r  r esour ce

6

` 

5) Your  bank off er  whi which ty p e of s of  services?

 

NO.

%

MOBILE BANKING

14

38%

 NET BANKING

12

32%

FOR  FOR EX EX BANKING

0

0%

OTHER 

11

30%

TOTAL

37

100%

38% 40%

3 %

30%

i  

3 % e  

30% h

h  

f

f  

e  

%

0% %

g  

0% e  

0%

%

0% MOBILE BANKING

NETBAN TBANKING

FOREX ORE X

OTHER

BANKING

%

Interpretati Interpretation

38  p erso ns said that hat bank off er  mo bil  bilee bank ing services. 32 said that hat bank  off er  net net bank ing services. 30% said that hat bank off er  other s r  services. And no one said that hat bank  off er for  ex bank ing services. r for ex

6

d  

6) Accor ding to you whi which of  the following bank s  provides ti mall or  economical cal inter est r ate? optima   8 8 16 5 37

ICICI PNB PNB DFC HDFC SBI TOTAL

NO.

% 22% 22% 43% 14% 100%

43% 4 % q  

40% 3 % q  

30%

22%

22%

2 % q  

14%

20% 1 % q  

10% q  

%

0% ICI CI

PNB

HDFC

SBI

%

INTE INTERPR  RPR ETA ETATION

The above gr a ph shows that hat acc or ding to the 43% of  tota l DFC  provides the optima ti mal/ l/ec economical cal inter est sam ple si e, HDFC next  pr ef er ence ence is given to ICICI and PNB PNB was r ate. The next timall inter est r ate. i.e. 22% And only 14% of   providing the optima the r espo ndent ndent pr ef err ed ed SB SBI.

6

p  

7) Whi Which f eat eatur e of  your s it? our  scheme satisf ied you to take it?

  LOW INSTALLM INSTALL MENT MAXIM AXIM UM TIM TIME PER  PE R IOD IOD HIGH INSTALLM INSTALL MENT  NOTHING TOTAL

50%

NO.

%

17

46%

13

35%

4

11%

3 37

8% 100%

46%

45% 40%

3 % s  

3 % s  

30% x

v  

w  

t

%

0% v  

% t

t  

%

t  

0% s  

u  

%

%

0% y 

OW

IN TA   

y

y

  

  

ENT

A I   

  

TI   

E

PERIOD

HIGH IN TA   

y

y

  

NOTHING ENT

%

INTE INTERPR  RPR ETA ETATION

The above gr a ph shows that hat accor ding to the 46% r espondent nden t y, lower  installmen llmentt. 35% wa s satisf y maxi maximum time ti me satisf y, llmentt And only 8% of  the  per iod, 11% wa s satisf y high installmen ndent not satisf y any f eat eatur e of  loan schemes. r espondent

6

r  

8) How would you r ate the over all quality lity of  your r  our  r elationshi p with ith bank s of  housing f inance consider ing all all of  your  ex per iences with ith them? Would you say it is««. NO.

%

VER  VER Y GOOD

7

19%

GOOD

18

49%

FATR  FATR 

12

32%

POOR  POOR 

0

0%

TOTAL

37

100%

4 %   

50%

40%

3 %   

30% 1 %   

  

0%

10%

0%

0% VERY G O O D

G OO D

FATR

POOR

%

INTE INTERPR  RPR ETA ETATION

Accor ding this char t, mostly tly 49% r espo ndent ndent r ate the over all quality lity of  your r  ith bank s of  housing f inance our  r elations hi p with ³good´ 32% ar e ³f air ´, ´, 19% ³ ver y good´ and no one r ate in ³ poor ´. ´.

6

  

9) On a scal cale of  1 to 5 wher e 1 r e pr es ent ents ³ext ³extr emel emely dissatisf ied´ and 5 r e pr es ent ents ³ ext extr emel emely satisf ied´ How would you r ate your  level of s action wit with h bank s of  housing of  satisf acti egar ds to  pr ice? f inance in r ega   EXC EXCELLENT VER  VER Y GOOD FAIR  FAIR  POOR  POOR  TOTAL

NO.

%

5 9

14% 24%

22 1 37

59% 3% 100%

59%   

0%

50% 40% 30%

  

0%

  

4%

14% 3%

10%

0% EXCE EXCELL LLEN ENT T

VERY VERY GOOD

FAI R

POOR

%

INTE INTERPR  RPR ETA ETATION

Mostly tly 59% r espo ndent ndent level of s action is ³f air ´ r ega egar ding of  satisf acti to  pr ice, 24% r ated in ver y good, 14% r ated in excell excellen entt, and only 3% r ated in  poor  .

66

10) In the case of su itabilit ility y of  EMI, whi which bank would you of  suitab  pr ef er ?   8 6 15 8 37

ICICI SBI DFC HDFC PNB PNB TOTAL

NO. 22% 16% 40% 22% 100%

40%

40% 30%

  

%

0%

  

  

%

  

%   

%

0% 0% ICICI SBI HDFC

PNB

%

INTE INTERPR  RPR ETA ETATION

The above gr a ph shows that hat accor ding to the 40 per cent centage of  total sam ple si e, HDFC DFC provides suitab itablle EM EMI. The next nex t ence is given to ICICI and PNB PNB has r ecei eceived the thir d  pr ef er ence ence for  prov itablle EM EMI. And only 16 per cent cent of   pr ef er ence  providing suitab the sam ple  pr ef err ed ed SBI.

67

11) Ar e you satisf y by the time ti me taken in sancti anctioning the loan?  

NO.

YES 25   NO TOTAL 37

  

% 68%

12

32% 100%

8%

70%   

0%

50%

3 %   

40% 30%   

0%

10%

0% %

YES

NO

Interpretati Interpretation:-

Total Number of  ndents was 37. 37. r  of  R espo ndent 68 % perso ns ar e satisf ied by the time ti me taken 32%  perso ns ar e not satisf ied by the time ti me taken

68

12) And, IN ca se of  long ter m whi which bank would you ch oose?

  8 8 6 15 37

ICICI SBI PNB PNB DFC HDFC TOTAL

NO.

% 22% 22% 16% 40% 100%

40% 40% 35% 30% 

  

  

  

%



  

%

5% 1 %

0%

  

15%

10%

5% 0% ICI CI

SBI

PNB

HDFC

%

Interpretati Interpretation:-

The above char t de picts that hat maxi maximum number  of  p  people has ed HDFC bank for  long ter m loans and 22  per cent cent of   pr ef err ed ence to ICICI & SB SBI and only 16% ha s  people has given  pr ef er ence given  pr ef er ence ence to PNB PNB.

6

  

13) Have you f ace ace any di diff iculty lty dur ing tak ing the loan?

NO. 10

YES   TOTAL

% 27%

NO

27

73%

37

100%

l  

3%

80%

j  

0% 

k  

%

40%

  

0% 0% %

YE

m  

NO

Interpretati Interpretation

Total Nu mber  of  R espondent ndents was 37. 27%  perso ns f ace ace di diff iculty lty dur ing tak ing the loan. 73%  perso ns does not f ace ace any di diff iculty lty dur ing tak ing the loan

7

  

14) Ar e you agr ee ee wit with h the af ter  home loan s ervices  provided  by your  bank ar e best as com par e to other  bank?   STR  STR ONGLY ONGLY AGR  AGR EE EE 4 AGR  AGR EE EE 27 DISAGR  DISAGR EE EE 6 STR  STR ONGLY ONGLY DISAGR  DISAGR EE EE 0 TOTAL 37

NO. 11% 73% 16% 0% 100%

  

  

  

  

%

3%

0%

0% 0%

50% 40% 30%   

o  

0%

o

o  

%



  

%

0%

0% 0% STRONGLY

AGREE

D I SA G RE E

AGREE

S TR O N G L Y DISAGREE

%

Interpretati Interpretation

Total Nu mber  of  R espondent ndents was 37. 11% among all all consu mers ar e stro ngl ngly agr eed eed by a f ter s r  sale services of the bank. 73% among all all consu mers ar e agr eed eed by a f ter s r  sale services of  the bank  16% among all all consu mers ar e di disagr eed eed by af ter s r  sale services of  the bank  0 among all all consu mers ar e strongl ngly di disagr eed eed by a f ter s r  sale services of the bank.

7

n 

15) On a scal cale of  1 to 5 wher e 1 r e pr es ent ents ³ ext extr emel emely dissatisf ied´ and 5 r e pr es ent ents ³ ext extr emel emely satisf ied´, Di Did you think t nk the  processing system is? NO. 5 13 12 7 37

EXC EXCEELLENT VER  VER Y GOOD GOOD AVER  AVER AGE AGE TOTAL

% 14% 35% 32% 19% 100%

35%

3 %   

35%

30%   

  

5%

19%

0%

14%

15%

10%

5%

0% EXCEEL EXCEELLE LENT NT

VERY VERY G O O D

GOOD

AVERAGE

%

Interpretati Interpretation

Total number  of r  ndent was 37. of  r espo ndent 35% said processing services is ver y good. 32% said  process ing is good. 19% said aver age age and only 14% said excell excellen entt.

7

  

16) How like likelly ar e to r ec ecommend whi which bank of  housing f inance to a fr iend or r  or  r elative ?

NO. 7 15 9 6 37

ICICI DFC HDFC SBI PNB PNB TOTAL

% 19% 41% 24% 16% 100%

41%

45%

40% 35%

30% {  

z  

5%

z  

4%

19%

1 %

0%

|  

15%

10% 5%

0% ICI CI

HDFC

SB I

PNB

%

Interpretati Interpretation

41%  people r ec ecommend HDFC DFC bank  of  housing f inance to a SBI, 19% AR  AR E IC ICICI and only 16% fr iend or r  or  r elative, 24% a r e SB ar e r ec ecommended PNB PNB.

7

  

17) Whi Which gr ade ade you want want to give of  homel me loan schemes of  your  bank?   EXC EXCELLENT GOOD AVER  AVER AGE AGE BELLOWS AVER  AVER AGE AGE TOTAL

NO.

%

7 21 9 0

19% 57% 24% 0%

37

100%

57% 60%

50% 40% 30% ~  

~  

4%

19%

0%

10%

0%

0% EXCELLENT

GOOD

AVERAG E

BELLO WS AVERAGE

Series

~  

Interpretati Interpretation

Total Nu mber  of  R espondent ndents was 37. 19%  perso ns give excell excellen entt gr ade ade of  the bank. 57%  persons give good gr ade ade to the bank. Onl Only 24%  perso ns give aver age age gr ade ade to the bank.  No one gi give bel below aver age age gr ade ade to the bank 

7

}  

18) Accor ding to you , whi which  positive aspect ect is  playi aying mor e gnif icant cant role in success of  housing f inance bank s? signi

 

NO.

%

SALES PR  P R OMOTION

6

16%

COSTOM OSTO M ER F R FR ENLYNESS ENLYNESS

8

22%

LOWER  LOWE R INTE INTER  R EST EST R ATES ATES

12

32%

LOWER  LOWE R E EMI¶S

3

8%

EASY LOAN SANC SAN CTIONING

8

22%

TOTAL

37

100%

35%

32%

30% 25%

22%

20%

22%

1 %   

15% 8%

10%

5% 0% A E

  

 

PRO   

  

OTION

CO TO   

  

ER

FREN YNE  



  

LOWER INTERE T   

RATE

LOWER E

  

I

  

EA Y LOAN SANCTIONING   

  

%

Interpretati Interpretation

The above gr a ph de picts that hat 32% said Lower  inter est r ates ar e the mai main aspect ect for  the success of  housing f inance. nanc e. 22% said customer fr  endline ness and easy loan sancti anctioning. 16% said sales r  fr iendli anding. And only 8% said lower  EMI¶S is  promotion and br andi ects.  positive asp ect

7

  

19) any suggestion that hat you want want to give«..   Give well well services to customer  loan anction sancti time time  per iod R ed educe inter est r ates Sal Sales  promotion

NO.

%

15

50

5

17%

10

33%

0

0

30

100%

50 50 40 30

20 10

17%

33%

0

0 Give well

l oan sancti on

Reduce

Sales

services to

time period

i nterest r ates

promotion

customer

%

INTE INTERPRI RPRIT TATION

Total r espondent ndent in suggestion is 30. Accor ding to this gr a ph 50%  people said gi give well well services to customer a,17 % said for  time ti me  per iod, 33% said r ed educe inter est r ates, and no one said for s for  sales  promotion.

76

CHAPTER 6 Page no. MMARY OF FINDING S  SU MMARY S 

70 



  

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



  

CHAPTER-7 Page no.

7.1 RECOMMENDATION AND CONCLUSION CONCLUSION

72

  

9

RECOMMENDATION 1. 2. 3. 4. 5. 6. 7. 8.

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

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

  

0

CHAPTER-8 8.1

BIBLIOGRAPHY

  

1

BIBLIOGRAPHY

y

Internet

y

Catalogs

y

³ Research Research Methodology´ Methodology´

-³C.R.Kothari´.

QUESTIONNAIRE

  

2

Dear r  ndant, r  r espo ndant As a  par t of  mba curr iculum, i am conducting ting a study ana lysis of  housing f inance schemes of  hdf c bank, icici bank,  pnb & s bi  bi bank   bank ". on " anal You ar e r eq equest ed to  please cooper ate by  providing r elevant ant infor mati mation. I assur e you that hat infor mati mation will will ke pt conf identi dentiaal and will will be used for s for  study  purpose only. Thank you yours f aith ithfully lly ita ja  jaiswal wal smita

y y y y y

 NAM  NAME-----------------------------E-------------------------------------------------------------------------------------------------------------------AGE----------- Nati Nationalit nality------y-------------------------------------- Inc In c ome----------------------Contact act number --------------------------------, --------------------------------, Addr ess-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------What What is your  occupation? Business man Gover nment nment em ployee wif e e House wi Student dent Other  1) If  you ar e make or  pur  chas e your o  pur cha our  own home than ar eyou like like to take f acilit acility y of Hous Finance? of  Housing Fi A. Yes

B. No

2). If  yes Whi Which Housing Fi Finance Bank you chose ? A. B. C. D. E.

ICICI Bank  DFC Bank  HDFC Pun jab  jab nati national nal bank  SBI bank  other  3) Ar e you awar e all all ter ms and conditi nditions of  home loans?

A. Yes

B. No

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

  

A.   News paper C. Internet 

B. Television D. Other resources

5) Your bank offer which type of services? A. Mobile banking B. Net banking C. Forex banking D. Other 6) According to you which of the following banks provides optimal or economical interest rate? A. ICICI  B. PNB C. HDFC D. SBI 7) Which feature of your scheme satisfied you to take it ? A. Low installment insta llment

B. Maximum time period

C. High installment amount

D. Nothing

8) How would you rate the overall quality of your relationship with banks of housing finance considering all of your  experiences with them? Would you say it is««. A. Very good

B. Good

C. Fair

D. Poor

9) On a scale of 1 to t o 5 where 1 represents ³extremely dissatisfied´ and 5 represents ³ extremely satisfied´ How would you rate rat e your level of satisfacti satisf action on with with banks of housing finance in regards to price? A. Excellent Excellent 

B. Very good

C. Good

D.

Poor 10) In the case of suitability of EMI, which bank would you  prefer? A. ICICI B. SBI C. HDFC PNB 11) Are you satisfy by the time taken in sanctioning the loan? A. Yes B. No 12) And, IN case of long term which bank would you choose? A. ICICI B.SBI C.PNB C.P NB D.HDFC

13) Have you face any difficulty during during taking the loan? A. Yes

B. No

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

4

A. Strongly agree C. Disagree

B. Agree D. Strongly disagree

15) On a scale of 1 to 5 where where 1 represents ³ extremely dissatisfied´ and 5 represents ³ extremely satisfied´, Did you think the processing system is? A. Excellent C. Good

B. Very Good D. Average

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

B.HDFC D. PNB

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

  

5