STUDENT DECLARATION

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

,A0NI

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

Mr& Amit '#mar (#pta 1Project (#ide2 ,DIAS

ACKNOWLEDGEMENT
"Gratitude is not a thing o e!"ression# it is $ore $atter o ee%ing&" There is al*ays a se$se of %ratit#de *hich o$e e3press to*ards others for their help a$d s#pervisio$ i$ achievi$% the %oals& This formal piece of ac-$o*led%eme$t is a$ attempt to e3press the feeli$% of %ratit#de to*ards people *ho helpf#l me i$ s#ccessf#lly completi$% of my trai$i$%& I *o#ld li-e to e3press my deep %ratit#de to Mr&A$it Khanna my trai$i$% coordi$ator for their co$sta$t co4operatio$& He *as al*ays there *ith his compete$t %#ida$ce a$d val#a/le s#%%estio$ thro#%h o#t the p#rs#a$ce of this research project& Special tha$-s to Mr&A$it Ku$ar Gu"ta *ho %#ided me to *or- ho$estly a$d to %ive val#a/le s#%%estio$ for improvi$% my *or- !ast /#t $ot least I *o#ld also li-e to place of appreciatio$ to all the respo$de$ts *hose respo$ses *ere of #tmost importa$ce for the project& A/ove all $o *ords ca$ e3press my feeli$%s to my pare$ts. frie$ds all those perso$s *ho s#pported me d#ri$% my project& I am also tha$-f#l to all the respo$de$ts *hose cooperatio$ 5 s#pport has helped me a lot i$ collecti$% $ecessary i$formatio$& I *o#ld also li-e to tha$- almi%hty (od for his /lessi$%s sho*ered o$ me d#ri$% the completio$ of project report&

E'ECUTI(E SUMMAR)
Home is a dream of a perso$ that sho*s the )#a$tity of efforts. sacrifices l#3#ries a$d a/ove all %atheri$% f#$ds little /y little to afford o$e6s dream& Home is o$e of the thi$%s that everyo$e o$e *a$ts to o*$& Home is a shelter to perso$ *here he rests a$d feel comforta/le& Ma$y /a$-s providi$% home loa$s *hether commercial /a$-s or fi$a$cial i$stit#tio$s to the people *ho *a$t to had a home& The ho#si$% sector plays a$ importa$t role i$ the eco$omic developme$t of the co#$try& My project title is A STUDY ON HOM !OANS"& I selected this topic /eca#se The I$dia$ ho#si$% fi$a$ce i$d#stry has %ro*$ /y leaps a$d /o#$d i$ fe* years&Total home loa$s dis/#rseme$ts /y /a$-s has rise$ *hich *it$esses phe$ome$al %ro*th from last 7 years& There are %reater $#m/er of /orro*ers of home loa$s&so /y this st#dy *e ca$ fi$d o#t satisfactio$ level of c#stomers a$d pro/lems faced /y them i$ o/tai$i$% home loa$s& M* o+,e-ti.es o stud* are/ 8 To ma-e comparative st#dy of Dis/#rseme$t of home loa$s /y commercial /a$-s& 8 To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s& 8 To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s& 9or this I had ta-e$ fo#r commercial +a$-s i$ Dehrad#$ city $amely HD9: +a$-. PN+. sta$dard chartered +a$-. S+I& It i$cl#des t*o p#/lic sector /a$-s a$d t*o private sector /a$-s& The period of st#dy is five years comme$ci$% from ;<<=4;<<>& In the resear-h $ethodo%og* I had ta-e$ /oth primary data as *ell as seco$dary data . i$ the primary data I had ma-e a )#estio$$aire to chec- the satisfactio$ level of c#stomers a/o#t home loa$s & I$ the seco$dary data I had st#died the a$$#al reports of ,+I. commercial /a$-s 5 /roachers of these /a$-s& 9or the first o/jective I had collected the i$formatio$ a/o#t the $#m/er of acco#$t holders of specified /a$-s. $o of dis/#rseme$t of home loa$s a$d recovery of these loa$s& A ter ana%*sis I -a$e to o%%o0ing indings In the -o$"arati.e stud* o s"e-i ied +an1s it2s ound that P#$ja/ Natio$al +a$- is havi$% lar%e $#m/er of c#stomer /ase *ith hi%h loa$ dis/#rseme$t a$d recovery of loa$s& The sta$dard chartered /a$- sho*ed less o#tsta$di$% /ala$ce *hich prese$ted i$ perce$ta%e form i$ the dia%ram&

In -ase o se-ond o+,e-ti.e i&e& -usto$er satis a-tion %e.e% it is ound that O$ the /asis of data the HD9: is emer%i$% at hi%her positio$ a :ompare to Sta$dard chartered /a$- a$d other p#/lic sector /a$-s o$ (ro#$d of professio$ally ma$a%ed services. relia/le 5 tra$spare$t System. easy )#ery ha$dli$% etc& And "ro+%e$s a-e +* -usto$ers in o+taining ho$e %oans are

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

9i$ally the *hole research *as carried o#t i$ a systematic *ay to reach at e3act res#lts& The *hole research a$d fi$di$%s *ere /ased o$ the o/jectives some of the limitatio$ faced i$ collecti$% the data *ere !ac- of time. lac- of data. $o$4respo$se. rel#cta$t attit#de a$d illiteracy of respo$de$ts. *hich posed pro/lems i$ carryi$% o#t the research& So$e o the suggestions are To i$crease their c#stomers. the /a$-s sho#ld provide speciali?ed services i$ this sector& These services ca$ /e s#ch as proper %#ida$ce to the :#stomer re%ardi$% the processi$% of loa$s. especially for the c#stomers *ho are illiterate& To satisfy their c#stomers a$d for %ood deali$%s i$ f#t#re. the /a$-s sho#ld ma-e prompt dis/#rseme$t of loa$ amo#$t to the c#stomers so that they ca$ /#y or co$str#ct their dream home as early as possi/le& The +a$-s sho#ld #se easy proced#re. or say. less le$%thy proced#re for the sa$ctio$i$% of loa$ to the c#stomer& There sho#ld /e less $#m/er of le%al formalities. i$ case this e3ists. the$. these sho#ld /e completed i$ less time& This *ill /e helpf#l i$ attracti$% more c#stomers& Altho#%h the i$terest rates o$ specific $orms. yet c#stomers see- less i$terest rate *hich ca$ lo*er their cost of ho#se& So /a$-s sho#ld try to lo*er their i$terest rates& Needles to say. that the /a$- *hich havi$% lo*er i$terest rates. have the ma3im#m clie$ts for loa$s& The p#/lic sector /a$-s sho#ld improve their overall services to i$crease the $#m/er of c#stomers for home loa$s& They sho#ld recr#it professio$als to provide s#ch services a$d to satisfy the c#stomers&

&

TA3LE OF CONTENTS

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

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

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

<<

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

TA3LE NO& B&; B&<

LIST OF TA3LES TIT!

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

PA( NO&

7&= @&; >&A >&; >&B >&= >&7 C&A C&; C&B C&= C&7 C&D C&@ C&>

C&C C&A< C&AA C&A; C&AB

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

LIST OF GRA87S GRA87 NO

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

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

8AGE NO ;> ;C B< B< BA B; B= 77 D; @< @; @7 @@ >D >>

F&99 F&9; F&9<

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

CA CB C=

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

LIST OF C7ARTS TITLE

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

8AGE NO 7< @C >< >A >; >B >= >7 >C

C&@
F&9D

A*are$ess a/o#t HD9: !TD

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

LIST OF A33RE(IATIONS A33RE(IATIONS

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

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

C7A8TER/ 9

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

Home is a dream of a perso$ that sho*s the )#a$tity of efforts. sacrifices l#3#ries a$d a/ove all %atheri$% f#$ds little /y little to afford o$e6s dream& Home is o$e of the thi$%s that everyo$e o$e *a$ts to o*$& Home is a shelter to perso$ *here he rests a$d feel comforta/le& Ma$y /a$-s providi$% home loa$s *hether commercial /a$-s or fi$a$cial i$stit#tio$s to the people *ho *a$t to have a home& HD9:41Ho#si$% Developme$t A$d 9i$a$ce :orporatio$2 Home !oa$. I$dia have /ee$ servi$% the people for aro#$d three decades a$d providi$% vario#s ho#si$% loa$ accordi$% to their varied $eeds at attractive 5 reaso$a/le i$terest rates& O*i$% to their *ide $et*or- of fi$a$ci$%. HD9: Ho#si$% !oa$s provides services at yo#r doorstep a$d helps yo# fi$d a home as per yo#r re)#ireme$ts& Ma$y /a$-s are providi$% home loa$s at cheapest rate to attract co$s#mers to*ards them& The more c#stomer frie$dly attit#de of these /a$-s. c#rre$tly offer to co$s#mers cheapest loa$ over homes& I$ vie* of ac#te ho#si$% shorta%e i$ the co#$try. a$d -eepi$% i$ mi$d the social E eco$omic role of commercial /a$-s i$ the prese$t times. the ,+I advised /a$-s to e$co#ra%e the flo* of credit for ho#si$% fi$a$ce& Fith the ,+I red#ci$% /a$- rate. the home loa$ mar-et rates $ose4divi$% /y 7< /asis poi$ts& The HD9: +a$- a$d Sta$dard chartered /a$- has /ecome the first player i$ this sector to a$$o#$ce a ho#si$% loa$ for a ;< years period& No do#/t it *ill e$ha$ce the e$d cost people to pla$ their ho#se over lo$%er d#ratio$ $o*G it has /ee$ made easy for a perso$ to /#y that dream ho#se *hich he dreamt of lo$% a%o& HD9: also provides *ith Home Improveme$t !oa$ for i$ter$al a$d e3ter$al repairs a$d other str#ct#ral improveme$ts li-e pai$ti$%. *aterproofi$%. pl#m/i$% a$d electric *or-s. tili$% a$d floori$%. %rills a$d al#mi$i#m *i$do*s& HD9: fi$a$ces #p to >7H of the cost of re$ovatio$ 1A<<H for e3isti$% c#stomers2& :#rre$t stat#s is that HD9: red#ced home loa$ rates /y 7< /asis poi$ts for all its e3isti$% floati$% rate c#stomers&

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

The vario#s /e$efits of home loa$s arisi$% to the c#stomers areI4 HiI Attra-ti.e interest rates:/

The vario#s /a$-s offer attractive i$terest rates to /oost a$d help their c#stomers& Ma$y /a$-s provide loa$s o$ fi3ed or floati$% rates to facilitate co$s#mers as per their $eeds& HiiI 7e%" in o0ning a ho$e:/ The home availed /y a perso$ *ith the help of /a$-s. /eca#se they provide tech$ical a$d fi$a$cial assista$ce to c#stomers for o*$i$% their dream home& HiiiI No reAuire$ent o guarantor:/ The commercial /a$-s $o* a day. li/erlise their la*s re%ardi$% home loa$s& Some of /a$-s do$6t eve$ re)#ire the %#ara$tor to %ra$t loa$ to their co$s#mers& They also ma-e co$s#mers free /y relivi$% him to fi$d a %#ara$tor to complete the proceedi$%s of availi$% loa$& Hi.I Door/Ste" Ser.i-es:/ These door to step services are provided from e$)#iry sta%e to the fi$al dis/#rseme$t ta-es place s#ch services are /e$eficial for c#stomers i$ prese$t /#sy life& +a$-s li-e I:I:I /a$- a$d sta$dard chartered /a$- provide door to step services to c#stomers to /orro* loa$& H.I Loan "eriod:/ There are ma$y /a$-s *hich provide ma3im#m loa$ te$#res #pto A74;< years /ased o$ the loa$ amo#$t a$d the creati/ility of c#stomers& This relieves the c#stomers to repay loa$ amo#$t till a lo$% period& H.iI For a--identa% death insuran-e :/ Some /a$-s provide free accide$tal death i$s#ra$ce *ith ho#si$% loa$ *hich is also /e$eficial for the c#stomers& These /e$efits or adva$ta%es of home loa$s are respo$si/le for ma-i$% tha$ so pop#lar amo$% c#stomer that a perso$ *ho do$6t have their home a$d *a$t to /#y. they do it *ith home loa$& Home loa$s help s#ch perso$s i$ ma-i$% their dream home&

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

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

The p#/lic sector /a$-s char%e hi%h processi$% cost for home loa$6s sa$ctio$i$%& They are forced to pay serio#s char%es at vario#s sta%es to f#lfill the re)#ireme$ts& Some co$s#mers are $ot a/le to pay s#ch char%es so s#ch people co#ld $ot avail the /e$efits of home loa$ schemes&

HiiiI

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

9&= DIS3URSEMENT OF 7OME LOANS :/

The every /a$- has its o*$ proced#re to dis/#rse the loa$ amo#$t amo$% c#stomers& After choosi$% yo#r ri%ht home. the $e3t step is dis/#rseme$t of home loa$s& The loa$ amo#$t is dis/#rsed after ide$tifyi$% a$d selecti$% the property or home that are p#rchased a$d s#/mit the re)#isite le%al doc#me$ts& I$ the dis/#rseme$t of home loa$s a clear title a$d f#ll verificatio$ to e$s#re that a perso$ has f#ll ri%hts o$ his ho#se& The ;B<A cleara$ce of seller a$d Jor B@A cleara$ces from the appropriate a#thority of i$come ta3 is also $eeded& HII E%igi+i%it* -riteria:/ Ho*ever. if o$e is a reside$t or $o$4reside$t i$divid#al *ho is pla$$i$% to /#y a ho#se i$ I$dia. o$e ca$ apply for a home loa$& If a perso$ has decided to /#y a property i$ the $ear f#t#re. heJshe ca$ apply for a loa$ /efore eve$ selecti$% the property& O$ce the ma3im#m amo#$t to p#t i$to the property has /ee$ decided. the Ho#si$% 9i$a$ce I$stit#tio$s or +a$-s *ill let the c#stomer -$o* that ho* m#ch heJshe is eli%i/le for a$d this helps to pla$ o#t the /#d%et& HiiI Conditions regarding -o/a""%i-ants: / All Ho#si$% 9i$a$ce I$stit#tio$s lay do*$ co$ditio$s o$ *ho ca$ /e co4applica$ts& all co4o*$ers to the property& $eed to /e co4applica$ts to the loa$ $ecessarily& These i$stit#tio$s do $ot permit mi$ors to joi$ i$ as either coo*$er or as co4applica$ts /eca#se a mi$or is $ot eli%i/le to e$ter i$to a co$tact as per la*& They do $ot permit eve$ frie$ds or relatives *ho are $ot /lood relatives to ta-e a property joi$tly&Ho*ever. I$come of co4applica$ts ca$ /e cl#//ed to%ether to %et hi%her loa$ eli%i/ility& (ive$ /elo* is a Ta/le that thro* li%ht o$ accepta/le relatio$ship of a co4applica$t for cl#//i$% of i$come& In-o$e C%u++ing o Co/a""%i-ants:4 It is as follo*sI4

:om/i$atio$ I$come :l#//i$%I 4 7us+and/Wi e: / I$come of h#s/a$d4*ife ca$ /e cl#//ed& 8arent / son: 4 It ca$ /e cl#//ed if o$ly so$ is there /#t $ot if a$y male si/li$% e3ists& 3rother/3rother: 4 If they are c#rre$tly stayi$% to%ether a$d i$te$d to stay to%ether i$ the $e* property. the$ o$ly. their i$come4ca$ /e cl#//ed for a/ove p#rposes& 3rother/Sister: 4 No cl#//i$%4is possi/le& Sister/Sister : / No cl#//i$% is possi/le& 8arent/Minor/ Chi%d: 4 No cl#//i$% is possi/le i$ this case also& HiiiI Genera% Ter$s and Conditions: / The follo*i$% are the terms a$d co$ditio$s applica/le to the /asic home loa$ prod#ct o$ly& These are li-ely to cha$%e o$ the /asis of the variatio$s of the home loa$ prod#ct& Typically. i$ %e$eral home loa$s. the follo*i$% co$ditio$s are applica/le :/ 9I The loa$ to val#e ratio 1!TK2 ca$$ot e3ceed a partic#lar perce$ta%e& This differs from prod#ct to prod#ct a$d from o$e Ho#si$% 9i$a$ce I$stit#tio$al +a$- 1H9IJ+2 to a$other& The compo$e$ts of the val#e of the Property calc#lated here are covered #$der cost of property& ;I The ma3im#m te$#re of the /a$- is $omi$ally fi3ed /y H9IJ+s& Ho*ever. H9lsJ+s do provide for differe$t te$#res *ith differe$t terms a$d co$ditio$s& <I The i$stallme$t that o$e pay is $ormally restricted to a/o#t47<4per ce$t of the mo$thly4%ross i$come of the ca$didate& =I The total mo$thly o#tflo* to*ards all the loa$s that have /ee$ availed of. i$cl#di$% the c#rre$t loa$ is $ormally restricted to 7<H of the %ross mo$thly i$come& BI O$e *ill /e eli%i/le for a loa$ amo#$t *hich is the lo*est as per o$eLs eli%i/ility& This is calc#lated as per the !TK $orms. the H,. $orms a$d the 9OI, $orms as me$tio$ed a/ove& ?I Most H9lsJ+s co$sider the profile /efore they j#d%e the repayme$t capacity& The j#d%eme$t is /ased o$ a%e. )#alificatio$s. $#m/er of depe$de$ts. employme$t details. employer crede$tials. *or- e3perie$ce. previo#s trac- record of repayme$t of a$y loa$s that have /ee$ availed of. occ#patio$. the i$d#stry to *hich the ca$didateLs /#si$ess relates to. if heJshe is self4employed. the$ the t#r$over i$ the last B4= years etc&

@I Some H9IsJ+s i$sists o$ %#ara$tees from other i$divid#als for the repayme$t of the loa$& I$ s#ch cases. the c#stomers has to arra$%e for the perso$al %#ara$tee /efore the dis/#rseme$t of the loa$ ta-es place& CI The property sho#ld /e tech$ically clear /efore the H9IsJ+s dis/#rses the loa$s amo#$t& Most of i$stit#tio$s a$d /a$-s have a teams of tech$ical e3perts *ho visit the site to %et a tech$ical report /efore the dis/#rseme$t of loa$& This is also /e$eficial to the c#stomer as they chec- for the tech$ical )#ality a$d complia$ce *ith local la*s& FI The property sho#ld /e le%ally clear /efore o$e ca$ avail of a dis/#rseme$t of the loa$ amo#$t& Ho#si$%49i$a$ce I$stit#tio$s J+a$-s 1H9IsJ+s2 ta-e le%al cleara$ce from their la*yers /efore the dis/#rseme$t of amo#$t& This proves to /e /e$eficial to the c#stomers as a le%al e3pert chec-s hisJher doc#me$tatio$ to e$s#re that heJshe %et a proper title to the property& 9DI The dis/#rseme$t of the loa$ is as per the pro%ress of co$str#ctio$ of the property #$less it is a ready property i$ *hich case the dis/#rseme$t *ill /e /y o$e si$%le che)#e& P MI or simple i$terest o$ the loa$ amo#$t dis/#rsed to the c#stomer i$ case of a part dis/#rseme$t *ill /e paya/le /y the c#stomer o$ the dis/#rseme$t& 99I The dis/#rseme$t i$ most cases *ill /e favori$% the /#ilder or the seller or the society or the developme$t a#thority as the case may /e& The dis/#rseme$t *ill come i$ the c#stomerLs favo#r #$der special circ#msta$ces o$ly& 9;I The repayme$t of loa$ ca$ /e made either thro#%h ded#ctio$ a%ai$st salary. post4 dated che)#es. sta$di$% i$str#ctio$s or A#to de/it i$str#ctio$s to /a$-& 9<I The pri$ciple is amorti?ed either o$ a$$#al red#ci$% or mo$thly red#ci$% /asis as the case may /e& The a/ove terms a$d co$ditio$s are %e$erally tr#e for most Ho#si$% fi$a$ce I$stit#tio$sJ+a$-s *ith respect to the %e$eral Home !oa$s& Ho*ever. the specific terms a$d co$ditio$s vary *ith respect to special Ho#si$% 9i$a$ce I$stit#tio$s or +a$-s& Hi.I Charges a""%i-a+%e to ho$e %oans :/ The differe$t -i$ds of char%es applica/le to home loa$s are disc#ssed /elo*: aI 8ro-essing ees :/ 9irst of all. comes the process fee& This is a char%e that is levied /y most H9lsJ+s& This has to /e paid at the time of s#/missio$ of the applicatio$ form& ItLs $ormally char%ed as a perce$ta%e of the loa$ amo#$t sa$ctio$ed& Some H9ls also char%e a flat fee /ased o$ the loa$ amo#$t i$stead of a perce$ta%e& Fhe$ a lo*er amo#$t is sa$ctio$ed the e3cess fees paid at the time of s#/missio$ of the applicatio$ is adj#sted *ith the char%es. *hich

o$e ma-e to the H9IJ+ s#/se)#e$tly& Most H9lsJ+s ref#$d the processi$% fee if the loa$ applicatio$ is rejected& +I Ad$inistrati.e ees :/ This char%e is a%ai$. $ormally. a perce$ta%e of the loa$ amo#$t sa$ctio$ed& It is collected /y the H9IJ+ for the mai$te$a$ce of c#stomerLs records. iss#i$% i$terest certificates. le%al char%es. tech$ical char%es. etc& tho#%h the te$#re of the loa$& It is paya/le /y the c#stomer *he$ heJshe accepts the offer letter %ive$ /y the H9IJ+& This payme$t has to /e made /efore the availme$t of the dis/#rseme$t& The mode of collectio$ of these fees varies from o$e H9IJ+ to a$other& -I Rate o interest :/ This is the rate of i$terest applica/le o$ the loa$ amo#$t thro#%h the te$#re of the loa$& It is char%ed o$ the pri$cipal mo$thly red#ci$% method& Most H9IsJ+s %ive a$ optio$ to select either a fi3ed rate of i$terest or a varia/le rate of i$terest& dI Lega% Charges:/ Some H9IsJ+s mai$ly P#/lic Sector +a$-s levy le%al char%es that they i$c#r o$ %etti$% the property doc#me$ts vetted /y their pa$el of la*yers& eI Te-hni-a% Charges:/ These char%es are also levied /y certai$ Ho#si$% 9i$a$ce I$stit#tio$sJ+a$-s 1H9IsJ+s2 to meet their e3pe$ses o$ the tech$ical site visits to the c#stomerLs property& This e$s#res )#ality of co$str#ctio$ a$d co$str#ctio$ *ithi$ the $orms as stip#lated /y the respective approval a#thority& I Sta$" dut* and registration -harges:/ H9Is that %o i$ for a re%istered mort%a%e pass these char%es o$ to the c#stomer& These are rather heavy i$ certai$ states depe$di$% o$ the la*s laid do*$ /y the state *here o$e /#y a property& gI 8ersona% Guarantee ro$ Charges :/ Si$ce the perso$al %#ara$tee provided /y the c#stomer $eed to /e stamped. these char%es are also recovered from the c#stomer& They are char%ed to him /y H9Is *ho dema$d for (#ara$tees&

hI CheAue 3oun-e Charges :/ I$ case the che)#es thro#%h *hich o$e ma-e a payme$t to H9ls %et disho$ored. some mi$im#m char%es are levied /y the H9I& The same are recovered from the c#stomer& HiI De%a*ed "a*$ent -harges :/ H9lsJ+s char%e delayed payme$t char%es from the c#stomer if heJshe delays the payme$t of i$stallme$ts /eyo$d the d#e date& H,I Additiona% -harges :/ These are levied as a perce$ta%e o$ the delayed payme$t char%es /y most H9ls& They are levied if o$e fail to pay the d#es *ithi$ the stip#lated time after a delay has ta-e$ place& H1I In-identa% -harge :/ This is paya/le i$ case the H9IJ+ se$ds a represe$tative from their or%a$i?atio$ to collect their o#tsta$di$% d#es& It is $ormally char%ed at a flat rate per visit& These char%es are levied /y most H9lsJ+s& %I 8re"a*$ent Charges :/ This is a pe$alty char%ed /y H9lsJ+s from *he$ o$e ma-es either a part prepayme$t or a f#ll repayme$t of the loa$& This char%e is levied o$ly o$ l#mp s#m payme$ts a$d $ot o$ the Mls that o$e pays& This char%e is levied o$ the amo#$t prepaid /y o$e a$d $ot o$ the e$tire o#tsta$di$% pri$cipal& These char%es are %rad#ally /ei$% disco#$t& So. these are the char%es levied /y most Ho#si$% 9i$a$ce I$stit#tio$s a$d +a$-s *hile %ra$ti$% home loa$ to the c#stomers& No*. the decisio$ o$ the repayme$t capacity shall /e tal-ed a/o#t as follo*s& H.I >udge$ent regarding re"a*$ent -a"a-it* on the +asis o in-o$e :/ To #$dersta$d ho* the i$come of a c#stomer is co$sidered to arrive at his repayme$t capacity. it is first $ecessary to classify c#stomers i$to salaried a$d self employed i$divid#als& aI The i$come of the salaried i$divid#al is co$sidered i$ the follo*i$% ma$$erI4 (ross mo$thly i$come as it appears o$ the salary slip

Less:/ A$y $o$ re%#lar varia/le i$come appeari$% o$ the salary slip 1i$cl#di$% overtime. etc&2 Add : / 7< per ce$t of the avera%e varia/le i$come of the last si3 mo$ths& Add: / A$y fi3ed cashJvo#cher payme$ts for *hich proof ca$ /e s#/mitted& Add: / 7< per ce$t of the avera%e varia/le cashJvo#cher payme$ts *ith proof li-e traveli$% reim/#rseme$t etc& Add :/ H,A receiva/le if $ot /ei$% received already i$ the salary slip& The a/ove i$come calc#lated for the calc#latio$ of eli%i/ility #si$% II, a$d 9OI, $orms& 9or calc#latio$ of 9OI,. the i$stallme$ts of all the loa$s that o$e has availed of c#rre$tly for *hich repayme$t is /ei$% made is ta-e$ i$to acco#$t as *ell& The lo*er of the t*o eli%i/ilities is co$sidered as the ma3im#m repayme$t capacity& +I To co$sider i$come of Self4employed i$divid#als *e f#rther classify them i$to Professio$als a$d $o$4professio$als & 8ro essiona%s:/ :omprisi$% doctors. chartered acco#$ta$ts. la*yers. architects. etc& 9or calc#latio$ of eli%i/ility of professio$alLs i$come is comp#ted /y most H9Is #si$% the %ross professio$al receipts i$stead of the Net profit as i$ the case of self4employed $o$4professio$als& Non/8ro essiona%s: 4 The i$come of $o$4professio$als is $ormally calc#lated /y H9Is i$ the follo*i$% ma$$er: /

Avera%e of the $et profits of last ; years as it appears i$ the profit a$d loss acco#$t 1,et#r$s $eed to /e filed for the same& They sho#ld /e filed re%#larly /efore the d#e date is over2& Less: / A$y i$come. *hich is #$#s#al a$d $o$4rec#rri$% i$ $at#re li-e sale of some asset. etc *hich affects profits s#/sta$tially. Add: / A$y e3pe$se that is #$#s#al a$d $o$4rec#rri$% i$ $at#re li-e repairs a$d mai$te$a$ce that has $ot /ee$ capitali?ed a$d effect profit adversely& Add: 4 7< per ce$t of the avera%e depreciatio$ of the last t*o years& The a/ove i$come is calc#lated for the calc#latio$ of eli%i/ility #si$% II, a$d 9OI, $orms& 9or calc#latio$ of 9OI, the i$stallme$ts of all the loa$s that o$e has availed of c#rre$tly for *hich repayme$t is /ei$% made is ta-e$ i$to acco#$t a$d the eli%i/ility is *or-ed o#t& The lo*er of the t*o eli%i/ilities is co$sidered as the ma3im#m repayme$t capacity&

H.iI Credit do-u$entation:/ (ive$ /elo* is the e3ha#stive list of credit doc#me$ts4 that $eed to /e s#/mitted for a %e$eral home loa$ prod#ct& The doc#me$ts vary from o$e H9IJ+ to a$other /ased o$ o$eLs employer. )#alificatio$s e3perie$ce etc& the %e$eral re)#ireme$ts are as follo*s: / HaI In-o$e Do-u$ents : 4 9or salaried slips for the last three mo$ths appoi$tme$ts letter4salary certificate4 retai$ership a%reeme$t. if appoi$ted as a co$s#lta$t49orm AD iss#ed /y the employer i$ c#stomerLs $ame i$come doc#me$t for self employee 4 last three years profit a$d loss acco#$t stateme$t d#ly attested /y :hartered Acco#$ta$ts& !ast three years +ala$ce Sheets d#ly attested /y :hartered Acco#$ta$t. last three years I$come Ta3 ,et#r$s *ith comp#tatio$ chart d#ly filed a$d certified /y the I$come Ta3 a#thorities& +I 8roo o e$"%o*$ent : 4 Ide$tify card iss#ed /y the employer4 Kisiti$% card& H-I E$"%o*erLs detai%s HIn -ase o "ri.ate %i$ited -o$"aniesI : / Profile of employer o$ employers letterhead 1to /e si%$ed /y a se$ior perso$ i$ the or%a$i?atio$2 comprisi$% M Name of promoterJdirectors M +ac-%ro#$d of promotersJdirectors M Nat#re of /#si$ess activity of yo#r employer M N#m/er of employees M !ist of /ra$chesJfactories M !ist of s#ppliers M !ist of clie$tsJc#stomers M T#r$over of employer M A$$#al reports of the employer for the last t*o to three years& HdI 8roo o age HAn*one o the o%%o0ingI : 4 Passport4 KoterLs ID card4PAN card4,atio$ card4 mployerLs ide$tity card4School leavi$% certificate4+irth certificate&

HeI 8roo o residen-e HAn*one o the o%%o0ingI : / ,atio$ card4Passport4 PAN card4,e$t a%reeme$t. if the c#stomer is stayi$% c#rre$tly o$ re$t4 +a$- Pass /oo-4Allotme$t letter from the compa$y if heJshe is residi$% i$ compa$y )#arters& H I 8roo o na$e -hange HI a""%i-a+%eI : / A copy of the official %a?ette EA copy of a $e*spaper advertiseme$t p#/lici?i$% the $ame cha$%e4Marria%e certificates& HgI 8roo i in.est$ent HI reAuiredI :/ +a$- stateme$t for the last si3 mo$ths of all operati$% a$d salary acco#$ts 4 +a$- stateme$ts for the last si3 mo$ths of all c#rre$t acco#$ts. if self4employed4a$y other photocopies of i$vestme$ts held. if re)#ired /y the H9:& H.iiI Lega% do-u$entation :/ !e%al Doc#me$tatio$ the typical le%al doc#me$ts that $eed to /e s#/mitted to the H9: arc disc#ssed here& (ive$ /elo* is a list of le%al property doc#me$ts that $eed to /e s#/mitted to the H9: for mort%a%e of the property& The $ame a$d the list of doc#me$ts vary from state to state a$d also depe$d o$ the type of property /ei$% fi$a$ced& A /road o#tli$e of the doc#me$ts re)#ired is %ive$ /elo*& aI Accepta$ce copy of the offer letter iss#ed /y the H9:J+& +I Title doc#me$ts of the property that i$cl#de 4sale a%reeme$t d#ly ,e%istered4O*$ co$tri/#tio$ receipts 4 Allotme$t letter4,e%istratio$ receipt4!a$d doc#me$ts i$dicati$% o*$ership. if applica/le4 Possessio$ letter4!ease a%reeme$t. if applica/le 1Property /o#%ht from a developme$t a#thority2 4 Mort%a%e deed if the H9: opts for a re%istered mort%a%e& -I No O/jectio$ :ertificate from the developer. society or developme$t a#thority as applica/le& dI Perso$al (#ara$tees. if applica/le& eI I$ case of alter$ator additio$al sec#rity. doc#me$ts for the same depe$di$% #po$ the sec#rity details&

I Post dated che)#es for the Mls& The a/ove doc#me$ts are o$ly i$dicative i$ $at#re a$d do $ot cover the e$tire list& It may. also /e $oted that i$ a resale case. the previo#s chai$ of a%reeme$t also $eed to /e ta-e$& H.iiiI The ta! +ene its that are a""%i-a+%e to housing %oans or indi.idua%s :/ :#rre$tly Ta3 +e$efits to i$divid#als are availa/le o$ly for the Home !oa$s a$d Home 3te$sio$ !oa$s prod#cts& The /e$efits availa/le are covered #$der these sectio$s& 8ro"ert* Insuran-e :/ Is it -o$"u%sor* to insure the "ro"ert*N some H9ls i$sist o$ a mort%a%e redemptio$ life i$s#ra$ce policy& I$ this case the c#stomer %ets a /e$efit of a$ i$terest rate red#ctio$& Tho#%h the H9I may $ot i$sist. it is /etter to %o i$ for property i$s#ra$ce to safe%#ard the asset a%ai$st a$y sort of dama%e or loss& The c#stomer ca$ select the te$#re for the property i$s#ra$ce& The i$s#ra$ce premi#m is cha$%ed #p fro$t& Most i$s#ra$ce compa$ies provide for h#%e disco#$ts o$ the rate of premi#m for lar%er te$#res& The premi#m char%ed c#rre$tly is seve$ty4seve$ for every la-h of property for a year& So a c#stomer has to f#lfill vario#s co$ditio$s to /e eli%i/le for availi$% home loa$ from a Ho#si$% 9i$a$ce I$stit#tio$J+a$- After f#lfilli$% these co$ditio$s. a c#stomer ca$ avail loa$ at lo* i$terest rate i&e& fi3ed rate floati$% rate& A decisio$ o$ *hether o$e sho#ld %o i$ for a fi3ed4rate loa$ or a floati$%4rate loa$ $o* is a f#$ctio$ of t*o factors i&e& O$eLs perceptio$ of *here i$terest rates i$ the eco$omy are headed a$d o$eL capacity to ride the i$terest rate cha$%es& A floati$%4rate loa$ let o$e ta-e adva$ta%e of f#rther falls i$ i$terest rates /#t o$e sta$d to loose if i$terest rate. rise a%ai$& Ho*ever this decisio$ is /ased o$ the perceptio$ of the co$s#mer&

C7A8TER/;

C7A8TER/; O3>ECTI(ES OF STUD)

There is $o stro$%est fo#$datio$ for yo#r dream home. tha$ a cheap loa$& Home loa$s have /ecome that stro$%er fo#$datio$s for people *ho *a$t to o*$ a home& The mai$ o/jectives of the st#dy are as follo*s I4 9I The mai$ o/jective of this st#dy is to -$o* the :#stomers perceptio$s a/o#t home loa$s of HD9: ho#si$% developme$t fi$a$ce corporatio$ !TD& ;I To a$aly?e the history of hdfc ltd& <2 (e$erati$% %ood /#si$ess to the compa$y /y promoti$% a$d selli$% the prod#cts of HD9: !TD& =2 To -$o* the ideas of c#stomers a/o#t home loa$ prod#cts a$d services& BI To ma-e comparative st#dy of Dis/#rseme$t of home loa$s /y :ommercial /a$-s& ?I 9i3i$% the appoi$tme$ts *ith the c#stomers& @I To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s&

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

;&9 8UR8OSE OF T7E STUD)

The mai$ p#rpose of this st#dy is to attai$ the -$o*led%e of the processi$% system of home loa$s& the mai$ p#rpose of the st#dy are as follo*s I4 To -$o* the ideas of c#stomers a/o#t home loa$ prod#cts a$d services&

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

To lear$ a/o#t vario#s aspect of HD9: home loa$ ltd&

;&; SCO8E OF STUD)

The I$dia$ ho#si$% fi$a$ce i$d#stry has %ro*$ /y leaps a$d /o#$d i$ fe* years& total home loa$s dis/#rseme$ts /y /a$-s has rise$ *hich *it$esses phe$ome$al %ro*th from last 7 years& There are %reater $#m/er of /orro*ers of home loa$s& so /y this st#dy *e ca$ fi$d o#t satisfactio$ level of c#stomers a$d pro/lems faced /y them i$ o/tai$i$% home&

C7A8TER /<

C7A8TER/< RESEARC7 MET7ODOLOG) OF T7E STUD)

RESEARC7 MET7ODOLOG):/ ,esearch methodolo%y is a *ay to systematically sho* the research pro/lem& It may /e #$derstood as a scie$ce of st#dyi$% ho* research is do$e scie$tifically& It is $ecessary for the researcher to -$o* $ot o$ly the research methods /#t also the methodolo%y& This Sectio$ i$cl#des the methodolo%y *hich i$cl#des& The research desi%$. o/jectives of st#dy. scope of st#dy alo$% *ith research methodolo%y a$d limitatio$s of st#dy etc& To -$o* the :#stomers perceptio$s a/o#t home loa$s of HD9: ho#si$% developme$t fi$a$ce corporatio$ !TD& To st#dy the satisfactio$ level of c#stomers a/o#t home loa$s& To st#dy the pro/lems faced /y c#stomers i$ o/tai$i$% the home loa$s& To ma-e comparative st#dy of dis/#rseme$t of home loa$s /y commercial /a$-s. the st#dy shall /e co$d#cted i$ the ma$$er e$#merated /elo*4

<&9/ RESEARC7 DESIGN:/ This project is /ased o$ e3ploratory st#dy as *ell descriptive st#dy& It *as a$ e3ploratory st#dy *he$ the c#stomer satisfactio$ level *as st#died to s#%%est $e* methods to improve the services of HD9: !TD i$ providi$% home loa$s a$d it *as

descriptive st#dy *he$ detailed st#dy *as made for compariso$ of dis/#rseme$t of home loa$s /y commercial /a$-s& <&; K SOURCES OF DATA :/ To f#lfill the i$formatio$ $eed of the st#dy& The data is collected from primary as *ell as seco$dary so#rces4 A / 8RIMAR) SOURCE:/ I decided primary data collectio$ method /eca#se o#r st#dy $at#re does $ot permit to apply o/servatio$al method& I$ s#rvey approach *e had selected a )#estio$$aire method for ta-i$% a c#stomer vie* /eca#se it is feasi/le from the poi$t of vie* of o#r s#/ject 5 s#rvey p#rpose& Fe co$d#cted A<< sample of s#rvey i$ o#r project to j#d%e the satisfactio$ level of c#stomers *hich too- home loa$s& 8 Sa$"%e si6e#/ 9or the )#estio$$aire I have ta-e$ the sample si?e of A<< c#stomers of HD9: !TD& 3 K SECONDAR) SOURCE:/ It *as collected from i$ter$al so#rces& The seco$dary data *as collected o$ the /asis of or%a$i?atio$al file. official records. $e*s papers. ma%a?i$es. ma$a%eme$t /oo-s. preserved i$formatio$ i$ the compa$y6s data/ase a$d *e/site of the compa$y& <&</ SAM8LING :/ Sampli$% refers to the method of selecti$% a sample from a %ive$ #$iverse *ith a vie* to dra* co$cl#sio$s a/o#t that #$iverse& A sample is a represe$tative of the #$iverse selected for st#dy& SAM8LE SIOE :/ !ar%e sample %ives relia/le res#lt tha$ small sample& Ho*ever. it is $ot feasi/le to tar%et e$tire pop#latio$ or eve$ a s#/sta$tial portio$ to achieve a relia/le res#lt& So. i$ this aspect selecti$% the sample to st#dy is -$o*$ as sample si?e& He$ce. for my project my sample si?e *as A<<& The Sample Si?e co$sists of /oth the Professio$al a$d +#si$ess class people& IT peoples. Doctors. 0e*elers. Tim/er Mercha$ts 5 ,eal estate A%e$ts are ta-e$ as Sample& SAM8LING TEC7NIJUE:/

,a$dom sampli$% tech$i)#e *as #sed i$ the s#rvey co$d#cted& TOOLS OF ANAL)SIS:/ Data has /ee$ prese$ted *ith the help of /ar %raph. pie charts. li$e %raphs etc& 8LAN OF ANAL)SIS:/ Ta/les *ere #sed for the a$alysis of the collected data& The data is also $eatly prese$ted *ith the help of statistical tools s#ch as %raphs a$d pie charts& Perce$ta%es a$d avera%es have also /ee$ #sed to represe$t data clearly a$d effectively& <&= DATA COLLECTION INSTRUMENT DE(ELO8MENT :/ The mode of collectio$ of data *ill /e /ased o$ S#rvey Method a$d 9ield Activity& Primary data collectio$ *ill /ase o$ perso$al i$tervie*& I have prepared the )#estio$$aire accordi$% to the $ecessity of the data to /e collected& <&B LIMITATIONS OF T7E STUD):/ This st#dy also i$cl#des some limitatio$s *hich have /ee$ disc#ssed as follo*sI iI The sample si?e of A<< c#stomers a$d = /a$-s mi%ht prove a limitatio$ /eca#se of diffic#lty i$ %e$erali?atio$ of res#lts& iiI To collect the data from vario#s /a$-s *as )#ite diffic#lt d#e to $o$4 cooperatio$ of some /a$-s& This proved to /e major limitatio$ of the st#dy& iiiI To access s#ch a lar%e $#m/er of c#stomers *as diffic#lt /eca#se of $o$4cooperative attit#de of respo$de$ts& i.I !ac- of data *as also the other limitatio$ of the st#dy as some of /a$-s do $ot have proper data o$ topic& .I There *as limitatio$ of time to co$d#ct s#ch a /i% s#rvey i$ limited availa/le time& .iI I%$ora$ce a$d rel#cta$t attit#de of c#stomers *as also a major limitatio$ i$ this st#dy& Th#s a/ove all *ere the limitatio$s i$ this research st#dy& The ma3im#m efforts *ere made to overcome these limitatio$s i$ the st#dy&

C7A8TER/=

C7A8TER K = RE(IEW OF LITERATURE

SUMMAR):/ 8 After %oi$% thro#%h pervio#s st#dies of Home loa$s I came to co$cl#de that4 8 There is %ro*th of home loa$s after ;<<A& 8 Home loa$s have a$ i$verse relatio$ *ith i$terest rates i&e& *he$ i$terest rate lo* the dema$d of home loa$s i$crease& 1Ojha AC>@2 8 People are %oi$% more to*ards home loa$s tha$ private mort%a%e i$s#ra$ce & 1+erstai$ ;<<>2 8 (over$me$t ta-i$% vario#s steps to e$co#ra%e people to %o to*ard home loa$s & 1Haavio. 'a#ppi ;<<<2 8 (ro*th of home loa$s are d#e to i$crease of livi$% sta$dard of people. shifti$% from joi$t family to $#clear family &1!aco#rr. Micheal ;<<@2 8 There are some pro/lems also attach *ith these home loa$s s#ch as time i&e filli$% of applicatio$ of loa$ to closi$% .people have their o*$ specified $eeds from these home loa$s *hich are $ot f#lfilli$%& 1!aco#r Micheal ;<<D2& 8 S+I provide a very lo* i$terest rate o$ home loa$s as compared to other /a$-s& 1S+I May ;<<<2 No0 a ter this -on-%usion the detai%s o re.ie0s are +e%o0/ 3erstain Da.id H;DDFI e3ami$ed i$ his st#dy ta-e$ from ;<<A to ;<<> that i$ this period there is i$crease #se of home loa$s as compared to private mort%a%e i$s#ra$ce 1PMI2&he have divided his st#dy i$to fo#r sectio$s& Sectio$ A descri/es *hy people are %oi$% more for home loa$s tha$ PMI& the mai$ reaso$ for this that $o* home loa$s mar-et provide Pi%%y/a$- loa$s for those people *ho do$6t have ;<H of do*$ payme$t& Sectio$ ; tells the factors respo$si/le for the %ro*th of home loa$s a$d the ris-s o$ shifti$% to*ard home e)#ity mar-et *itho#t a$y PMI covera%e& PMI ca$ protect le$ders from most losses #p to ><H of !TK a$d the a/se$ce of PMI *ill res#lt i$ co$sidera/le losses i$ a$ e$viro$me$t& Sectio$ B tells the meas#res i$ cha$%es of type of loa$s& 9or this he have ta-e$ the data from the ;<<A a$d ;<<@ AHS a joi$t project /y HUD a$d :e$s#s The res#lts of this a$alysis prese$ted i$ Ta/le O$e reveal a sharp i$crease i$ the Prevale$ce of o*$er4occ#pied properties *ith m#ltiple mort%a%es amo$% properties *ith Ne*ly ori%i$ated first mort%a%es& Sectio$ = descri/e the 9i$a$cial stat#s of si$%le4lie$ a$d m#ltiple4lie$ ho#seholds a$d for this he have ta-e$ the s#rvey of co$s#mer fi$a$ce a$d sho* that fi$a$cial positio$ is more *ea-er i$ m#ltiple loa$s tha$ the si$%le loa$s& (ande%%E Kerr* D H;DDCI a$alysis the sharp rise a$d tha$ s#dde$ly drop do*$ home prices from the period ACC>4 ;<<>& cha$%es i$ prices are for the reaso$s as s#ch eco$omic

f#$dame$tals . the pro/lem *as $ot s#/ prime le$di$% per se. /#t the 9edMs dramatic red#ctio$s. the$ i$creases i$ i$terest rates d#ri$% the early4 mid4;<<< . the ho#si$% N/oom *as co$ce$trated i$ those mar-ets *ith si%$ifica$t s#pply4side restrictio$s. *hich te$d to /e more price4volatileG he pro/lem *as $ot i$ the e3cess s#pply of credit i$ a%%re%ate. or the i$crease i$ s#/ prime per se. /#t rather i$ the i$creased or red#ced prese$ce of certai$ other mort%a%e prod#cts& La -ourrE Mi-hea% H;DD@2 a$alysis i$ his st#dy the factors affected the i$crease i$ the level of A$$#al perce$ta%es rates 1AP,2 spread reporti$% d#ri$% ;<<7 over ;<<=& the three mai$ factors are cha$%es i$ le$der /#si$ess practicesG 1;2 cha$%es i$ the ris- profile of /orro*ersG a$d 1B2 cha$%es i$ the yield c#rve e$viro$me$t& The res#lt sho* that after co$trolli$% for the mi3 of loa$ types. credit ris- factors. a$d the yield c#rve. there *as $o statistically si%$ifica$t i$crease i$ reporta/le vol#me for loa$s ori%i$ated directly /y le$ders d#ri$% ;<<7. tho#%h i$direct. *holesale ori%i$atio$s did si%$ifica$tly i$crease& 9i$ally. %ive$ a model of the factors affecti$% res#lts for ;<<=4;<<7. *e predict that ;<<D res#lts *ill co$ti$#e to sho* a$ i$crease i$ the perce$ta%e of loa$s that are hi%her priced *he$ fi$al $#m/ers are released i$ Septem/er ;<<@& La -our Mi-hea% H;DD?I e3ami$ed the home p#rchase mort%a%e prod#ct prefere$ces of !MI ho#seholds& O/jectives of his st#dy to a$alysis the factors that determi$ed factors their choice of mort%a%e prod#ct . is differe$t i$come %ro#ps have some specified $eed to met partic#lar prod#ct& The role prici$% a$d prod#ct s#/stit#tio$ play i$ this se%me$t of the mar-et a$d do res#lts vary *he$ loa$s are ori%i$ated thro#%h mort%a%e /ro-ersO 9or this they have #se the re%ressio$ a$alysis a$d the res#lts are hi%h i$terest ris- red#ce loa$ val#e& Self employed /orro*er chooses red#ce doc#me$ted loa$s tha$ salaried *or-ers&#se of this prod#ct type seems to /e more prevale$t amo$% /orro*ers *ith s#/sta$tial f#$ds for do*$ payme$t a$d /etter credit scores& I$ case of prici$% M#lti families re)#ires price premi#m a$d lar%er loa$s carry lo*er rate& A$d the role of time. partic#larly. the time re)#ired for the loa$ to proceed from applicatio$ to closi$% it is fi$d that %over$me$t le$di$% ta-i$% the lo$%est time a$d No$prime loa$s the shortest time&M#lti family properties ta-e lo$%er time i$ closi$%& A$d d#ri$% pea- seaso$ ta-e lo$%er time to close& A$d for last o/jective it is fi$d that /ro-er ori%i$ated loa$s close faster&The effect of mort%a%e /ro-ers o$ prici$% a$d other mar-et o#tcomes is fertile %ro#$d for additio$al research& Dr& Rangara,an C& H;DD9I said that the fi$a$cial system of I$dia /#ilt a vast $et*or- of fi$a$cial i$stit#tio$s a$d mar-ets over times a$d the sector is domi$ated /y /a$-i$% sector *hich acco#$ts for a/o#t t*o4third of the assets of or%a$i?ed fi$a$cial sector& 7aa.ioE Kau""i H;DDDI stated that co#$tries *here a lar%e proportio$ of the pop#latio$ lives i$ o*$er E occ#pied ho#si$% are e3perie$ci$% hi%her #$employme$t rates& Tha$ co#$tries *here the majority of people live i$ private re$tal ho#si$%. *hich mi%ht s#%%est that re$tal ho#si$% e$ha$ces la/o#r mo/ility& I$ this paper. they develop a simple i$ter temporal t*o re%io$ model that allo* #s to compare o*$er occ#pied ho#si$% mar-ets to re$tal mar-ets a$d to a$aly?e ho* these alter$ative arra$%eme$ts allocate people i$ space

a$d time& a$$o#$ced that it *ill offer loa$s for ,s& ;4A< la-h at A;&7 perce$t the lo*est rate offered /y a$y ho#si$% fi$a$ce provider. /i% /rother S+I has ta-e$ the rate *ar i$ the home loa$s cate%ory to $e* hei%hts& This is /eca#se. apart from the lo* rate. the i$terest o$ these loa$s is calc#lated o$ pri$cipal. *hich is red#ced every mo$th #$li-e other ho#si$% fi$a$ce compa$ies *hich calc#late i$terest o$ a$$#ally red#ci$% /asis& Narasi$ha$ Co$$ittee H9FF9I poi$ts o#t that altho#%h the /a$-i$% system i$ o#r co#$try has made rapid pro%ress d#ri$% the last t*o decades. there is decli$e i$ prod#ctivity a$d efficie$cy a$d erosio$ of profita/ility& The committee stro$%ly ma-e i$dicatio$s of li/erlisi$%. dere%#lati$% eco$omy to ma-e I$dia$ /a-i$% system more competitive a$d efficie$t& O,ha H9FC@I i$ his paper Pmoder$ i$ter$atio$al capariso$ of prod#ctivity a$d Profita/ility of p#/ic sector /a$-s of I$diaP ma-i$% :ompariso$ o$ the /asis of per employee i$dicators a$d ta-i$% e3amples of state /a$- %ro#p a$d P#$ja/ Natio$al /a$$oted that I$dia$ /a$-s are the lo*est i$ all acco#$ts& Ho*ever s#ch i$ter$atio$al compariso$ *ill $ot /e fair for $#m/ers of reaso$s& Godse H9FC<I i$ his essay. loo-i$% a fresh at /a$-i$% prod#ctivity" o/serve that prod#ctivity aspect is o$ly at the :o$cept#ali?atio$ sta%e i$ /a$-i$% i$d#stry& He s#%%ested improveme$t i$ prod#ctivity a$d proced#res. costi$% of operatio$s a$d capital e3pe$dit#re etc& Fanning H9FC;2. *hile e3ami$i$% /a$- prod#ctivity of +ritish /a$-s o/served that altho#%h the prod#ctivity of the U' cleari$% /a$-s is improvi$%. they are still heavily over ma$$ed as compared *ith similar /a$-s else *here& Ku%1arni H9F@FI i$ his st#dy Developme$t respo$si/ility a$d profita/ility of /a$-s" stated that *hile co$sideri$% /a$-s costs a$d profits. social /e$efits arisi$% o#t of it ca$$ot /e i%$ored& He s#%%ested that *hile meeti$% social respo$si/ility /a$-s sho#ld try to ma-e developme$tal /#si$ess as s#ccessf#l as possi/le& (arde and Singh H9F@FI i$ a st#dy Pprofita/ility of commercial /a$-sP over A7 years %ave co$sideratio$ to t*o types of factors that effects i$terest rates levels i&e& i$ter$al factors 1i$cl#di$% operatio$al a$d ma$a%erial efficie$cy of i$divid#al /asis2& 3an1ing Co$$ission H9F@;2 revie*ed /a$- operati$% methods a$d proced#res a$d made recomme$datio$s for improvi$% a$d moder$i?i$% these. partic#larly relati$% to c#stomers services. credit proced#re a$d i$ter$al co$trol systems& It o/served that prese$t methods of *or-i$% o#t /ra$ch profita/ility are $ot appropriate a$d a$ i$te%rated costi$% a$d fi$a$cial reporti$% system is $eeded& De"art$ent o 3an1ing o"erations and de.e%o"$entE R3I I +om/ay o/served that the rapid e3pa$sio$ of /a$-s activities si$ce AC@< called for a phase of co$solidatio$s to improve the )#ality of /a$-s operatio$al efficie$cy. prod#ctivity a$d c#stomer services&

C7A8TER/B

C7A8TER/B INTRODUCTION TO T7E INDUSTR)

B&9 T7E 7ISTOR) OF INDIAN 7OME LOANS:/ 7o$e %oans in India have made people +#y Property i$ I$dia i$ spite of the s-yroc-eti$% prices& Today. *e fi$d co$sidera/le ,eal state I$vestme$t i$ I$dia. either i$ the field of ,eside$tial Property i$ I$dia or :ommercial Properties i$ I$dia& Home !oa$s i$ I$dia are dis/#rsed /y ma$y +a$-s as !oa$ +a$-i$% is o$ of the most importa$t f#$ctio$ of the Finan-ia% Ser.i-es in India& Property Dealers a$d ,eal state :o$s#lta$ts i$ I$dia #s#ally recomme$d that *e #$derta-e appropriate Home !oa$ or Mortgage Loan co#$seli$% so that *e ca$ +#y Apartme$t i$ I$dia at a$ afforda/le Mort%a%e ,ate&P#rchasi$% the home of yo#r dreams is $ot a$ easy tas-& specially *he$ yo# pla$ to /#y a home o$ loa$& Home loa$ mea$s that yo# /#y a ho#se o$ i$stallme$ts& I$ simpler terms *he$ yo# *a$t to o*$ a home a$d ca$6t afford to pay the amo#$t i$ l#mp s#m. yo# ca$ pay it i$ mo$thly i$stallme$ts *ith a$ i$terest rate& The interest rates o ho$e %oans are e3pected to %o do*$ eve$ f#rther accordi$% to a$alysts *ho foresee a c#t do*$ i$ the rates /y the ,+I i$ the *a-e of the decisio$ ta-e$ /y US 9ederal ,eserve to c#t its rates /y a si%$ifica$t mar%i$& There are $#m/er of compa$ies offer cheap home loa$s at a lo* i$terest rate& Yo# ca$ avail loa$ a%ai$st e3isti$% ho#se for re$ovatio$ or e3pa$sio$ etc& There are ma$y $atio$ali?ed /a$-s that offer fi$a$ce for afforda/le ho#si$%& I$dia Ho#si$% has p#t to%ether a comprehe$sive data to provide yo# *ith the cheapest Home !oa$s availa/le i$ the mar-et& Fe have listed all the importa$t ho#si$% fi$a$ce i$stit#tes a$d some of the top home fi$a$ce /a$-s providi$% lo*est i$terest rates& I$ the last fe* years. ho#si$% loa$ sce$ario i$ I$dia has cha$%ed drastically& It has ta-e$ a fro$t seat a$d people are loo-i$% for*ard to o*$i$% their o*$ ho#ses& It is $o more a dream that re)#ired lifetime savi$% a$d a diffic#lt decisio$ to ma-e& Today the $e* home p#rchase loa$ is m#ch easily availa/le a$d is m#ch cheaper tha$ *hat *as availa/le earlier& +a$-s are $o* every*here a$d the schemes are impleme$ted eve$ i$ villa%es a$d smaller to*$s& The ho#si$% loa$s are pop#lar there too. ho*ever. the activity of /#ildi$% flats is little slo*& It *o#ld $ot /e *ro$% to say that there has /ee$ a /oom i$ the home loa$ mar-et a$d *ith this /oomG there is also a /oom i$ the N#m/er of home loa$s mort%a%e /ro-ers i$ I$dia& The mai$ reaso$ for this /oom i$ home loa$ mar-et is the cha$%e i$ %over$me$t policies& It is o#r %over$me$t6s motivatio$ that the home loa$ i$terest rates i$ I$dia have falle$ co$sidera/ly& !ot ma$y /a$-s are offeri$% home loa$s a$d this is availa/le at lo* MIs 1 )#ated mo$thly I$stallme$ts2& Hi%h MIs are $o* a thi$% of past& Today le$di$% rate is i$ the ra$%e of @&7 to A7 H& A%ai$. there are differe$t types of home loa$s availa/le today& The i$terest rate availa/le is also of t*o differe$t types& O$e is the fi3ed rate loa$ a$d the other is the floati$% rate loa$& I$ the fi3ed rate loa$. *hatever i$terest is fi3ed o$ the start of loa$ is carried o$ for the complete period& Ho*ever. i$ the other o$e. the i$terest rate is $ot fi3ed a$d as the i$terest rate %oes #p or lo* the effect is directly tra$sferred to the perso$ *ho is ta-i$% the loa$& I$ the last fe* years the floati$% i$terest rate has /ee$ a favorite amo$% most of the people ta-i$% home loa$s& There is also a tre$d to opt for home co$str#ctio$ loa$& This loa$ is availa/le to those *ho *a$t to desi%$ their homes accordi$% to their re)#ireme$t a$d taste& I$ other *ords. this loa$ is mea$t for those *ho themselves *a$t to co$str#ct their $e* home&

As shared earlier. ta-i$% a loa$ is $ot a diffic#lt tas-& Ho*ever. /efore ta-i$% a loa$. o$e m#st reali?e that the relatio$ship *ith the /a$- *ill /e for a lo$%er period #s#ally A7 to ;< years so o$e m#st e$s#re faith a$d i$te%rity i$ /a$-& Apart from lo* rate of i$terest. the /a$- sho#ld also provide some val#e added services& The other thi$% is to loo- i$to is the property that is to /e /ro#%ht& Ma-i$% s#re that the /#ilder has all sa$ctio$s a$d facility to /#ild a %ood /#ildi$% is very importa$t& Ta-i$% home loa$s these days has /ecome simpler& Fith the ,+I re%#larly /ri$% do*$ i$terest ratesG ta-i$% home loa$s have /ecome e3tremely easy& Ho#si$% loa$s *hich *ere AD&7H to A>H a fe* years a%o fell /y AA&7H to ABH& Fith i$terest rates %oi$% do*$. people i$creasi$%ly $#m/er apply to ta-e these loa$s& Some of the leadi$% /a$-s offeri$% home loa$s i$ I$dia. i$cl#di$% I:I:I +a$-. ID+I +a$-. HD9: +a$- . +a$- of +aroda. S+I. Sta$dard :hartered +a$- a$d A3is +a$- & B&; 7o$e Loan 8ro-edure in India I4 Su+$ission o A""%i-ation For$: / After choosi$% a partic#lar home loa$. the c#stomer s#/mits the applicatio$ form to the ho#si$% fi$a$ce compa$y 1H9:2 alo$% *ith other releva$t doc#me$ts as re)#ired /y the H9:& They comprise doc#me$ts to esta/lish i$come. a%e. reside$ce. employme$t. i$vestme$ts. etc& The c#stomer also $eeds to ha$d over a che)#e for payme$t of a$ #p fro$t 1$o$ 4ref#$da/le2 processi$% fee of a/o#t <&74AH of the loa$ amo#$t to the H9:& (a%idation o the In or$ation: / I$ the $e3t sta%e. H9:s validate the i$formatio$ provided /y the c#stomer o$ the applicatio$ form& They #s#ally co$d#ct chec-s o$ the reside$tial address of the c#stomer. the place of employme$t of the c#stomer. a$d crede$tials of the employer& Some H9:s may i$sist o$ a perso$al i$tervie* *ith the c#stomer a$d perform a refere$ce chec- o$ the refere$ces provided /y the c#stomer o$ the applicatio$ form& Issue o San-tion Letter :/ After d#e appraisal of c#stomer profile. a sa$ctio$ letter is iss#ed *hich co$tai$s details s#ch as loa$ amo#$t. rate of i$terest. a$$#al J mo$thly red#ci$% /ala$ce. te$or of the loa$. mode of repayme$t a$d %e$eral terms a$d co$ditio$s of the loa$& This is the act#ally the approval of the mo$ey le$di$% proced#re /y the compa$y& Ho*ever. the mo$ey is sa$ctio$ed o$ly after the doc#me$ts a$d the property o$ /ehalf of *hich the loa$ is /ei$% %ra$ted is thoro#%hly verified& Su+$ission o Do-u$ents: / O$ce the sa$ctio$ letter is passed. the c#stomer is re)#ired to leave the e$tire set of ori%i$al doc#me$ts pertai$i$% to the property /ei$% p#rchased *ith the H9: as sec#rity for the loa$ amo#$t sa$ctio$ed& These doc#me$ts remai$ i$ the c#stody of the H9: till the time the loa$ is f#lly repaid& O$ce the doc#me$ts are ha$ded over to the H9:. they se$d all the doc#me$ts for a thoro#%h le%al scr#ti$y& (a%idation o 8ro"ert*: / Prior to dis/#rseme$t. the H9: also co$d#cts a site visit to the c#stomerLs property to e$s#re that all co$str#ctio$ $orms have /ee$ adhered to properly& O$ce the H9: is satisfied that the property is le%ally a$d tech$ically clear. they dis/#rse the loa$ amo#$t& The dis/#rseme$t from the H9I is o$ the /asis of the sta%e of co$str#ctio$ of the property&

8a*$ent 8ro-edure: / O$ce all the a/ove me$tio$ed process. the /orro*er is e$titled to ta-e the mo$ey from the le$der party& U$til s#ch time that the e$tire sa$ctio$ed amo#$t is $ot dra*$. the c#stomer is s#pposed to pay a simple i$terest o$ the Act#al Amo#$t dra*$ 1*itho#t a$y pri$cipal repayme$ts2& The MI payme$ts comme$ces o$ly after the e$tire sa$ctio$ed loa$ amo#$t is dra*$& B&< INT , ST ,AT S P,OKID D +Y KA,IOUS +AN'S Finan-e Institution Loan 8eriod Hin *earsI Up to 7 +a$- of +aroda D to A< AA to A7 AD to ;< Up to 7 State +a$- Of I$dia D to A< AA to A7 AD to ;< Up to 7 HD9: D to A< AA to A7 AD to ;< Fi!ed EMI 5 La1h HINRI ;<@D A;B< A<== CB; ;A<< AB<< 4 4 ;A@7 AB@7 AAB@ A<BB F%oating EMI 5 La1h HINRI ;<;> A;;@ C@< >D> ;<D= A;>< A<;C C=C ;A<A A;C= A<=7 CBB

C&<< C&;7 C&7< C&7< C&7< C&@7 4 4 AA AA AA AA

>&<< >&;7 >&;7 >&7< >&@7 C&;7 C&;7 C&@7 C&7< C&7< C&7< C&7<

Up to 7 I:I:I +a$D to A< AA to A7 AD to ;< Up to 7 !I: Ho#si$% 9i$a$ce D to A< AA to A7 AD to ;<

A<&@7 A<&@7 A<&@7 A<&@7 A<&7< AA AA AA

;AD; ABD= @;A A<AD ;A=C AB@B AAB@ A<B;

C&7< C&7< C&7< C&7< C&7< C&7< C&7< C&7<

;A<A A;C= A<=7 CBB ;A<< A;C= A<== CB;

Up to 7 PN+ Ho#si$% 9i$a$ce D to A< AA to A7 AD to ;<

C&<< C&<< C&;7 C&7< AA C&<< C&<< C&;7 C&7<

;<@D A;D@ A<B< CBB A<B; ;<@D A;D@ A<B< CBB

A<&7< A<&7< A<&7< A<&7< C&7< A<&7< A<&7< A<&7< A<&7<

;A7< AB7< AA<D CCC CB; ;A7< AB7< AA<D CCC

AD to ;< Up to 7 D to A< PN+Ho#si$% 9i$a$ce AA to A7 AD to ;<

The a/ove ta/le ill#strates the compariso$ /et*ee$ the i$terest rates from vario#s Ho#si$% 9i$a$ce :ompa$ies a$d /a$-s& It ca$ /e see$ that if o$e *ishes to %o for floati$% loa$s. the /a$- *hich %ives the /est deal as far as the i$terest rate is co$cer$ed is HD9: follo*ed /y PN+ Ho#si$% 9i$a$ce *ith the lo*er rates& Lo-1/in a-i%it* +* +an1s :/ A loc-4i$. also called a rate4loc- or rate commitme$t. is a le$der6s promise to hold a certai$ i$terest rate a$d a certai$ $#m/er of poi$ts for yo#. #s#ally for a specified period of time. *hile yo#r loa$ applicatio$ is processed& 1Poi$ts are additio$al char%es imposed /y the le$der that are #s#ally prepaid /y the co$s#mer at settleme$t /#t ca$ sometimes /e fi$a$ced /y addi$% them to the mort%a%e amo#$t& O$e poi$t e)#als o$e perce$t of the loa$ amo#$t&2 Depe$di$% #po$ the le$der. yo# may /e a/le to loc- i$ the i$terest rate a$d $#m/er of poi$ts that yo# *ill /e char%ed *he$ yo# file yo#r applicatio$. d#ri$% processi$% of the loa$. *he$ the loa$ is approved. or later& A loc-4i$ that is %ive$ *he$ yo# apply for a loa$ may /e #sef#l /eca#se it6s li-ely to ta-e yo#r le$der several *ee-s or lo$%er to prepare. doc#me$t. a$d eval#ate yo#r loa$ applicatio$& D#ri$% that time. the cost of mort%a%es may cha$%e& +#t if yo#r i$terest rate a$d poi$ts are loc-ed i$. yo# sho#ld /e protected a%ai$st i$creases *hile yo#r applicatio$ is processed& This protectio$ co#ld affect *hether yo# ca$ afford the mort%a%e& Ho*ever. a loc-ed4i$ rate co#ld also preve$t yo# from ta-i$% adva$ta%e of price decreases, #$less yo#r le$der is *illi$% to loc- i$ a lo*er rate that /ecomes availa/le d#ri$% this period& It is importa$t to reco%$i?e that a loc-4i$ is $ot the same as a loa$ commitme$t. altho#%h some loa$ commitme$ts may co$tai$ a loc-4i$& A loa$ commitme$t is the le$der6s promise to ma-e yo# a loa$ i$ a specific amo#$t at some f#t#re time& (e$erally. yo# *ill receive the le$der6s commitme$t o$ly after yo#r loa$ applicatio$ has /ee$ approved& This commitme$t #s#ally *ill state the loa$ terms that have /ee$ approved 1i$cl#di$% loa$ amo#$t2. ho* lo$% the commitme$t is valid. a$d the le$der6s co$ditio$s for ma-i$% the loa$s s#ch as receipt of a satisfactory title i$s#ra$ce policy protecti$% the le$der& Ora% or 0ritten %o-1/in agree$entN :/

Some le$ders have prepri$ted forms that set o#t the e3act terms of the loc-4i$ a%reeme$t& Others may o$ly ma-e a$ oral loc-4i$ promise o$ the telepho$e or at the time of applicatio$& Oral a%reeme$ts ca$ /e very diffic#lt to prove i$ the eve$t of a disp#te& It is *ise to o/tai$ *ritte$. rather tha$ ver/al. loc-4i$ a%reeme$ts to ma-e s#re that yo# f#lly #$dersta$d ho* yo#r le$der6s loc-4i$s a$d loa$ commitme$ts *or- a$d to have a ta$%i/le record of yo#r arra$%eme$ts *ith the le$der& This record may /e #sef#l i$ the eve$t of a disp#te& Charges o a %o-1/in:/ !e$ders may char%e yo# a fee for loc-i$% i$ the rate of i$terest a$d $#m/er of poi$ts for yo#r mort%a%e& Some le$ders may char%e yo# a fee #p4fro$t. a$d may $ot ref#$d it if yo# *ithdra* yo#r applicatio$. if yo#r credit is de$ied. or if yo# do $ot close the loa$& Others mi%ht char%e the fee at settleme$t& The fee mi%ht /e a flat fee. a perce$ta%e of the mort%a%e amo#$t. or a fractio$ of a perce$ta%e poi$t added to the rate yo# loc- i$& The amo#$t of the fee a$d ho* it is char%ed *ill vary amo$% le$ders a$d may depe$d o$ the le$%th of the loc-4i$ period& T*"es o %o-1/in:/ Lo-1ed/In Interest Rate//Lo-1ed/In 8oints :/ U$der this optio$. the le$der lets yo# loc- i$ /oth the i$terest rate a$d poi$ts )#oted to yo#& This optio$ may /e co$sidered to /e a tr#e loc-4i$ /eca#se yo#r mort%a%e terms sho#ld $ot i$crease a/ove the i$terest rate a$d poi$ts that yo#6ve a%reed #po$ eve$ if mar-et co$ditio$s cha$%e& Lo-1ed/in Interest Rate//F%oating 8oints:/ U$der this optio$. the le$der lets yo# loc- i$ the i$terest rate. *hile permitti$% or re)#iri$% the poi$ts to rise a$d fall 1float2 *ith cha$%es i$ mar-et co$ditio$s& If mar-et i$terest rates drop d#ri$% the loc-4i$ period. the poi$ts may also fall& If they rise. the poi$ts may i$crease& ve$ if yo# float yo#r poi$ts. yo#r le$der may allo* yo# to loc-4i$ the poi$ts at some time /efore settleme$t at *hatever level is the$ c#rre$t& 19or i$sta$ce. say yo#6ve loc-ed i$ a A<Q perce$t i$terest rate. /#t $ot the B poi$ts that *e$t *ith that rate& A mo$th later. the mar-et i$terest rate remai$s the same. /#t the poi$ts the le$der char%es for that rate have dropped to ;Q& Fith yo#r le$der6s a%reeme$t. yo# co#ld the$ loc- i$ the lo*er ;Q& Poi$ts&2 If yo# float yo#r poi$ts a$d mar-et i$terest rates i$crease /y the time of settleme$t. the le$der may char%e a %reater $#m/er of poi$ts for a loa$ at the rate yo#6ve loc-ed i$& I$ this case. the /e$efit yo# mi%ht have had /y loc-i$% i$ yo#r rate may /e lost /eca#se yo#6ll have to pay more i$ #p4fro$t costs& I$dia$ co$omy is %ro*i$% at a $ice pace 1>H p&a2 *hich is also drivi$% per capita i$come rise& The dema$d of real estate has reached at a $e* pea- accordi$% to $i$th five year pla$ there is a shorta%e of =;millio$ ho#ses &+#t i$ I$dia the fi%#res to (DP are smaller i$ compariso$ to the other co#$tries :o$tri/#tio$ of ho#si$% to (DP is close to >H& So#rcesI NH+

B&= Indian Mar1et or 7o$e %oans is $ore than Rs&BDDEDDD -rore:/ Today. $ot o$ly the metros are *it$essi$% the ho#si$% cr#$ch eve$ the seco$d tier cities li-e4 0aip#r. +h#/$esh*ar. !#c-$o*. Trive$dr#m etc& are falli$% i$to the dearth of livi$% space a$d *a$ti$% for more e3pa$sio$& India Re"ort: I$dia$ credit report i$ compariso$ to the other Asia$ co#$tries is sho*$ i$ the statistics /elo*. *hich is amo$% the lo*est& It is I$dia$ psyche that credit is termed /ad. I$dia$ are traditio$ally $ot i$cli$ed to ta-e credit this reflects i$ the fi%#res /elo*I4 GRA87 :/ B&9

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

I$dia$ Home loa$s i$d#stry is %ro*i$% at a fast pace B<H per a$$#m. this ca$ /e see$ i$ the stats sho*$ /elo* *ith avera%e tic-et si?e 1loa$ si?e2 a$d Amo#$t dis/#rsed is risi$% every year the opport#$ities have /ecome more domi$a$t for differe$t or%a$i?atio$ i$ I$dia& The dema$d drivers are fast %ro*i$% middle class pop#latio$. rise i$ *or-i$% *ome$ *or-force. /i%%er aspiratio$s of yo#th. Ta3 savi$%. Tra$spare$cy i$ the real estate mar-et& GRA87:/ B&;

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

GRA87:/B&<

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

So#rcesI ,+I

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

%ro*i$% dema$d & more a$d more people are mi%rati$% to cities for *or- J /#si$ess& More a$d more jo/s are created a$d price i$de3 rise /ecomes i$evita/le& 8ri-e Inde!: FIG/B&B

The a/ove fi%#re sho*s the rise i$ prices of space per s) feet i$ differe$t major cities& 7ousing shortage in India: / The /elo* fi%#re sho*s the ever4i$creasi$% dema$d for ho#ses i$ I$dia a$d also me$tio$ed here is the ,#ral a$d #r/a$ re)#ireme$t& +a$-s are drivi$% $e* strate%ies to tap /oth the mar-ets i$ a differe$t *ay E ,#ralJUr/a$& There are cate%ories *ith I$dia$ loa$ dema$d. *hich is sho*$ i$ this fi%#re

FIG:/ B&?

B&? Re-ent trends o ho$e %oan in India:/ I$ order to #$dersta$d the rece$t tre$ds *e $eed to -$o* or #$dersta$d vario#s factors& These factors play vital role i$ I$dia$ home loa$ mar-et& These i$cl#de i$terest rate o$ *hich /a$-s provide home loa$. ta3 re/ate o$ home loa$ a$d its impact& Apart from this to #$dersta$d the rece$t tre$d *e $eed to compare the tre$ds of home loa$ of differe$t years& Here *e have compared the i$terest a$d other mar-et tre$ds of year ;<<C *ith ;<<@4<>& This -i$d of compariso$ %ives the res#lt *hich helps #s to #$dersta$d the tre$ds of mar-et of a$y i$d#stry& Apart from the impact of prese$t a$d past eco$omic #ps a$d do*$ also affect the tre$ds& Today the US slo*do*$ is the major iss#e *hich has affected almost all the i$d#stry& So *e have also disc#ssed this iss#e i$ terms to defi$e tre$d of home loa$ mar-et i$ I$dia& B&@ I$"a-t o s%o0do0n on ho$e %oan $ar1et in India:/ The fear of a recessio$ looms over the U$ited States& A$d as the cli$ch %oes. *he$ever the US s$ee?es. the *orld catches a cold& This is evide$t from the *ay the I$dia$ mar-ets crashed ta-i$% a c#e from a pro/a/le recessio$ i$ the US a$d a %lo/al eco$omic slo*do*$& U&S slo*do*$ has affected almost all sectors $ot o$ly i$ US /#t to all over the *orld& I$dia$ eco$omy has also /ee$ affected /y this slo*do*$ /eca#se I$dia is a %ro*i$% co#$try a$d almost i$ all sectors vario#s m#lti$atio$al compa$ies have major co$tri/#tio$& So the role of this slo*do*$ is a major iss#e to /e disc#ssed *hile tal-i$% a/o#t Home !oa$ Mar-et i$ I$dia& +a$-ers *ho *ere earlier falli$% over each other to dole o#t home loa$s. eve$ for soft f#r$ishi$%s. have s#dde$ly /ecome choosy& +a$-s li-e S+I. I:I:I +a$-. UTI +a$-. ID+I +a$- a$d leadi$% mort%a%e firm HD9: are $o* appare$tly ma-i$% a co$scio#s attempt to c#r/ their a%%ressio$ i$ the home loa$ mar-et&sit#atio$ is li-e that if a c#stomer *ho rece$tly approached a private sector /a$- for a home loa$ of a/o#t ,s A< la-h for a te$#re of A7 years fo#$d. to his shoc-. that the eve$t#al loa$ dis/#rseme$t *as j#st ,s 7

la-h& Most /a$-ers are$Lt *illi$% to co$firm a$y slo*do*$ i$ their home loa$ portfolio& O$ record. they attri/#te the mar%i$al dip i$ home loa$ dis/#rseme$ts to the rece$t hi-e i$ i$terest rate& Privately. ho*ever. they have a differe$t story to tell& PThe slo*do*$ i$ the home loa$ mar-et for select players li-e I:I:I +a$- *as evide$t from 0a$#ary& I:I:I +a$-Ls avera%e home loa$ dis/#rseme$t i$ a mo$th is aro#$d ,s ;.7<< crore i$ a mo$th. *hich has come do*$ to almost ,s ;.<<< crore i$ March.P said a private sector /a$-er& I:I:I +a$- officials de$ied a$y slo*do*$ i$ their home loa$ portfolio a$d they say that the rece$t dip i$ i$terest rates has had some impact o$ dis/#rsals& Ho*ever. i$ a/sol#te terms. it is still lo*& ve$ this slo*do*$ the deposit %ro*th for the sector as a *hole is aro#$d A@H. *hile credit is %ro*i$% at almost ;>H. forci$% /a$-s to /ecome selective& I$stit#tio$s $o* char%e a floati$% rate of > to >&;7 per ce$t o$ home loa$s a/ove ,s ;< la-h& I$itial estimates /y /a$-ers s#%%est that the i$crease i$ rate for home loa$s a$d other se%me$ts *o#ld /e aro#$d ;747< /asis poi$ts 1<&;7H to <&7H2& ve$ as the provisio$i$% re)#ireme$t has %o$e #p aro#$d D< /asis poi$ts. the hi-e i$ i$terest rates may /e lo*er as the impact *o#ld /e felt for the first year& It *o#ld also depe$d o$ ho* *ell capitali?ed the /a$-s are as the rise i$ provisio$i$% a$d ris- *ei%hta%e *o#ld affect the ret#r$ o$ e)#ity for /a$-s& Fea-er /a$-s a$d /a$-s *ith a lar%e portfolio of these loa$s are li-ely to /e more affected a$d may hi-e rates first& Home loa$ %ro*th of dis/#rsals *ere at ;< per ce$t i$ ;<<@4<> accordi$% to a st#dy /y the credit rati$% a%e$cy :,ISI!. a Sta$dard 5 Poor6s compa$y& This rate is lo*er tha$ the B< per ce$t a$$#al i$crease see$ i$ the past three years. /#t i$ a/sol#te terms represe$ts a s#/sta$tial e3pa$sio$& The slo*er %ro*th reflects the impact of risi$% property prices a$d i$terest& 7DFC: *ie%ding Ground: / !oa$ %ro*th may slo* do*$ i$ ;<<C4A< as the compa$y loses some mar-et share&

GRA87 :B&@

:ompetitio$ is $ot $e* to HD9:. after all I:I:I +a$- *as a to#%h competitor *he$ it *e$t o$ a c#stomer ac)#isitio$ spree some years /ac-& This time aro#$d. altho#%h I:I:I may $ot /e i$ a positio$ to %ive HD9: a r#$ for its mo$ey. p#/lic sector /a$-s. especially State +a$- of I$dia 1S+I2 co#ld& The differe$ce /et*ee$ fo#r years a%o a$d $o* is that mo$ey today is $ot yet cheap a$d certai$ly $ot as i$e3pe$sive as it *as /ac- i$ ;<<= a$d ;<<7& Of co#rse *ith /a$- loa$s to HD9: $o* treated as priority le$di$%. the cost of f#$ds for HD9: sho#ld come do*$& +#t sho#ld lo$%4term rates %o #p. HD9: *ill feel the pi$ch& That6s *hy the mar-et sat #p a$d too- $ote *he$ S+I -ic-ed off a$ > per ce$t i$4 the4 first 4year prod#ct /elievi$% HD9: co#ld lose some mar-et share& I$ the rece$t rally. the stoc- *hich had pl#$%ed to a t*o year lo*. has %ai$ed BA per ce$t to the Se$se36s ;B per ce$t& The %ood $e*s is that tra$sactio$s co#ld start pic-i$% #p i$ the seco$d half of ;<<C $o* that property prices have started tre$di$% do*$ as have i$terest rates& +#t altho#%h the home loa$ major /elieves it ca$ ma$a%e a %ro*th of ;< per ce$t i$ ;<<C4A<. a$alysts are $ot so s#re& :!SA poi$ts o#t that HD9:6s loa$ %ro*th 1pre4 sec#ritisatio$2 *o#ld /e aro#$d A74A@ per ce$t& O$e reaso$ for this is that HD9: +a$may $o* hold /ac- a hi%her proportio$ of loa$s that it ori%i$atesG the /a$- c#rre$tly so#rces j#st over a fo#rth of HD9:6s loa$s& As a res#lt HD9:6s operati$% i$come may i$crease /y a/o#t A7 per ce$t i$ ;<<C4 A< *hile its $et profits sho#ld %ro* /y a/o#t A<4A; per ce$t& HD9: has al*ays scored *he$ it comes to -eepi$% /ad loa$s i$ chec-. *hich is *hy a fe* delays or eve$ defa#lts *ill $ot h#rt the /ala$ce sheet& At ,s A.D7B.the stoc- trades at aro#$d ;&> times the estimated adj#sted /oo- val#e for ;<<C4A<& B&C Interest and $ar1et trends in *ear ;DDF:/ Home loa$ i$terest rates. especially o$ $e* home loa$ acco#$ts. started softe$i$% from the /e%i$$i$% of this year *he$ the ,eserve +a$- of I$dia 1,+I2 a$$o#$ced sharp c#ts i$ the repo rate a$d cash reserve ratio

1:,,2& The ,+I started slashi$% the -ey policy rates si$ce Octo/er last year. after ta-i$% i$to acco#$t the *orse$i$% li)#idity sit#atio$ of /a$-s here& The ce$tral /a$- has red#ced its -ey policy i$terest rates 1repo a$d reverse repo2 a$d reserve ratio 1:,,2 fo#r times i$ the last si3 mo$ths& The c#t i$ the repo rate mea$t commercial /a$-s *o#ld have f#$ds availa/le at a lo*er cost& O$ the other ha$d. the c#t i$ the :,, mea$t /a$-s *o#ld have to -eep less mo$ey *ith the ,+I a$d he$ce they had more mo$ey to le$d& A$alysts /elieve that i$terest rates have $ot yet /ottomed o#t a$d there *ill /e f#rther c#ts i$ /orro*i$% rates over the $e3t fe* mo$ths& Fhile the i$terest rate c#t e3pectatio$ is a thi$% of the past. the )#estio$ is *ill it %o /ac- to the old levels of @4> perce$t *hich co$tri/#ted to a property /oomO :o$se$s#s is already /#ildi$% #p for the fact that *e are headed to*ards a lo* i$terest rate re%ime i$ the comi$% co#ple of years. i$ li$e *ith %lo/al tre$ds& I$ the case of the domestic eco$omy. the tri%%er for lo* i$terest rates has already happe$ed o$ the deposit fro$t *ith /a$-s red#ci$% the rate /y A4; perce$t i$ the last fe* *ee-s& No*. the deposit rate has come do*$ to si$%le di%it eve$ *ith respect to lo$% term deposits 1o$ B47 years2 a$d that *o#ld mea$ /a$-s have access to cheaper f#$ds& Fith i$flatio$ too slidi$% do*$ at a rapid pace. there is hope for co$ti$#a$ce of a cheaper rate re%ime& 9ollo*i$% i$ State +a$- of I$dia6s 1S+I6s2 footsteps. other state4r#$ /a$-s may also come o#t *ith scheme offeri$% home loa$ at a fi3ed rate of >H& The I$dia$ +a$-s6 Associatio$ 1I+A2 *o#ld revie* the respo$se of /orro*ers to*ards the S+I scheme after three *ee-s a$d if it fi$ds that there has /ee$ a %ood respo$se. other /a$-s *ill follo* s#it& !ast *ee-. S+I had a$$o#$ced that it *o#ld offer home loa$s at a flat rate of >H to all /orro*ers a$d *o#ld free?e this rate for o$e year& The chairma$ of o$e of the major /a$-s. *ho as-ed $ot to /e $amed. said S+I ca$ afford to le$d at s#ch cheap rate as it has o$e of the /est c#rre$t a$d savi$%s acco#$t 1:ASA2 deposit ratio& :ASA deposits are the cheapest so#rce of f#$ds for a /a$- a$d a hi%h :ASA deposit ratio /ri$%s do*$ their avera%e cost of f#$ds& This i$ t#r$ helps the /a$- i$ offeri$% cheaper credit *hile mai$tai$i$% their $et i$terest mar%i$ 1NIM2& NIM is the differe$ce /et*ee$ the rates at *hich /a$-s /orro* a$d le$d& State4o*$ed /a$-s started c#tti$% their home loa$ rates after co#$tryLs lar%est le$derG State +a$- of I$dia fro?e its $e* home loa$ rates at ei%ht per ce$t for o$e year rece$tly& 7DFC Redu-es 7o$e Loan Rate 3* D&B 8er-ent: / Home fi$a$ce major HD9: red#ced home loa$ rates /y 7< /asis poi$ts for all its e3isti$% floati$% rate c#stomers& HD9: also said that it *ill char%e A<&;7 perce$t of i$terest a$$#ally from $e* applica$t for a loa$ of ,s ;< la-h or less& A$d for loa$s of more tha$ ,s ;< la-h. it *ill char%e i$terest at AA&;7 perce$t& The /a$- also red#ced the i$terest rate o$ deposits that it accepts from the p#/lic /y 7< /asis poi$ts& I$ a stateme$t to the media. HD9: i$formed that all the cha$%es *ill come i$to effect from Decem/er ;;& HD9: *as a/le to /ri$% home loa$ c#ts /eca#se the %over$me$t a$d ,+I had ta-e$ series of meas#res to i$f#se li)#idity i$to the eco$omy& Over the last three mo$ths. ,+I has c#t -ey policy rates. i$cl#di$% cash reserve ratio. repo a$d reverse repo rates. a$d stat#tory li)#idity ratio& (over$me$t has also i$f#sed mo$ey i$to the ho#si$% sector thro#%h the Natio$al Ho#si$% +a$-& PSU /a$-s are also forced to c#t rates for $e* home loa$s #p to ,s ;< la-h&

Altho#%h i$ the past fe* *ee-s several /a$-s c#t home loa$ rates. /#t those decisio$s applied o$ly to $e* c#stomers& HD9: is the first major ho#si$% le$der to c#t rates for /oth c#rre$t a$d $e* c#stomers& Fhile comme$ti$% o$ this matter. 'e-i Mistry. HD9: vice chairma$ a$d MD said that the /a$- *as a/le to e3ercise the move especially /eca#se of the rece$t red#ctio$ i$ the cost of f#$ds& The *holesale f#$di$% rate has decli$ed from Octo/er4Novem/er levels he$ce HD9: decided to pass o$ the /e$efits to its c#stomers. /oth old a$d $e* o$es& B&F T*"es o ho$e %oans: / Ho#si$% loa$s offered /y /a$-s are of differe$t typesI4

Home P#rchase !oa$s Home :o$str#ctio$ !oa$s Home Improveme$t !oa$s Home 3te$sio$ !oa$s Home :o$versio$ !oa$s !a$d P#rchase !oa$s Stamp D#ty !oa$s +rid%e !oa$s +ala$ce Tra$sfer !oa$s ,efi$a$ce !oa$s !oa$s to N,Is

7o$e "ur-hase %oans:/ This is the /asic home loa$ for the p#rchase of a $e* home& If yo# *a$t to /#y a flat i$ some society or some already /#ilt ho#se. /a$-s a$d H9:s sa$ctio$ yo# home p#rchase loa$s for this process& 7o$e -onstru-tion %oans:/ This loa$ is availa/le for the co$str#ctio$ of a $e* home o$ a said property& The doc#me$ts that are re)#ired i$ s#ch a case are sli%htly differe$t from the o$es yo# s#/mit for a $ormal Ho#si$% !oa$& If yo# have p#rchased this plot *ithi$ a period of o$e year /efore yo# started co$str#ctio$ of yo#r ho#se. most H9:s *ill i$cl#de the la$d cost as a compo$e$t. to val#e the total cost of the property& I$ cases *here the period from the date of p#rchase of la$d to the date of applicatio$ has e3ceeded a year. the la$d cost *ill $ot /e i$cl#ded i$ the total cost of property *hile calc#lati$% eli%i/ility& 7o$e i$"ro.e$ent %oans:/ These loa$s are %ive$ for impleme$ti$% repair *or-s a$d re$ovatio$s i$ a home that has already /ee$ p#rchased. for e3ter$al *or-s li-e str#ct#ral repairs. *aterproofi$% or i$ter$al *or- li-e tili$% a$d floori$%. pl#m/i$%. electrical *or-. pai$ti$%. etc& O$e ca$ avail of s#ch a loa$ facility of a home improveme$t loa$. after o/tai$i$% the re)#isite approvals from the releva$t /#ildi$% a#thority& the follo*i$% are comi$% #$der the home improveme$t loa$sI

3ter$al repairs Tili$% a$d floori$% I$ter$al a$d e3ter$al pai$ti$% Pl#m/i$% a$d electrical *orFaterproofi$% a$d roofi$% (rills a$d al#mi$#m *i$do*s Faterproofi$% o$ terrace :o$str#ctio$ of #$der%ro#$dJoverhead *ater ta$Pavi$% of compo#$d *all 1*ith sto$eJtileJetc&2 +ore*ell&

7o$e e!tension %oans:/ A$ e3te$sio$ loa$ is o$e *hich helps yo# to meet the e3pe$ses of a$y alteratio$ to the e3isti$% /#ildi$% li-e e3te$sio$J modificatio$ of a$ e3isti$% homeG for e3ample additio$ of a$ e3tra room etc& O$e ca$ avail of s#ch a loa$ facility of a home e3te$sio$ loa$. after o/tai$i$% the re)#isite approvals from the releva$t m#$icipal corporatio$& 7o$e -on.ersion %oans:/ This is availa/le for those *ho have fi$a$ced the prese$t home *ith a home loa$ a$d *ish to p#rchase a$d move to a$other home for *hich some e3tra f#$ds are re)#ired& Thro#%h a home co$versio$ loa$. the e3isti$% loa$ is tra$sferred to the $e* home i$cl#di$% the e3tra amo#$t re)#ired. elimi$ati$% the $eed for pre4payme$t of the previo#s loa$& Land "ur-hase %oans:/ This loa$ is availa/le for p#rchase of la$d for /oth home co$str#ctio$ or i$vestme$t p#rposes& Sta$" dut* %oans:/ This loa$ is sa$ctio$ed to pay the stamp d#ty amo#$t that $eeds to /e paid o$ the p#rchase of property& 3ridge %oans:/ +rid%e !oa$s are desi%$ed for people *ho *ish to sell the e3isti$% home a$d p#rchase a$other& The /rid%e loa$ helps fi$a$ce the $e* home. #$til a /#yer is fo#$d for the old home&

3a%an-e/ trans er %oans:/ +ala$ce Tra$sfer is the tra$sfer of the /ala$ce of a$ e3isti$% home loa$ that yo# availed at a hi%her rate of i$terest 1,OI2 to either the same H9: or a$other H9: at the c#rre$t ,OI a lo*er rate of i$terest&

Re inan-e %oans:/ ,efi$a$ce loa$s are ta-e$ i$ case *he$ a loa$ for yo#r ho#se from a H9I at a partic#lar ,OI yo# have ta-e$ drops over the years a$d yo# sta$d to lose& I$ s#ch cases yo# may opt to s*ap yo#r loa$& This co#ld /e do$e from either the same H9I or a$other H9I at the c#rre$t rates of i$terest. *hich is lo*er& NRI ho$e %oans:/ This is tailored for the re)#ireme$ts of No$4,eside$t I$dia$s *ho *ish to /#ild or /#y a home or property i$ I$dia& The H9:s offer attractive ho#si$% fi$a$ce pla$s for N,I i$vestors *ith s#ita/le repayme$t optio$s& O$ *o#ld /e e$titled for home loa$s i$ the ra$%e of ,s 7 la-h to a ma3im#m of ,s A crore. /ased o$ the repayme$t capacity. previo#s credit history a$d the cost of the property& The /a$- may provide a ma3im#m of >7H of the cost of the property or the cost of co$str#ctio$ as applica/le a$d @7H of the cost of la$d i$ case of p#rchase of la$d& The repayme$t capacity is calc#lated ta-i$% i$to acco#$t factors s#ch asI A%e I$comeJSalary R#alificatio$s Depe$da$tJ1s2 AssetsJ!ia/ilities :redit History Sta/ility J co$ti$#ity of yo#r employme$tJ/#si$ess I$come of co4applica$tJ1s2 Ta-i$% home loa$s these days has /ecome simpler& Fith the ,+I re%#larly /ri$% do*$ i$terest ratesG ta-i$% home loa$s have /ecome e3tremely easy& Ho#si$% loa$s *hich *ere AD&7H to A>H a fe* years a%o fell /y AA&7H to ABH& Fith i$terest rates %oi$% do*$. people i$creasi$%ly $#m/er apply to ta-e these loa$s& Some of the leadi$% /a$-s offeri$% home loa$s i$ I$dia. i$cl#di$% I:I:I +a$-. ID+I +a$-. HD9: +a$- State +a$-. +a$- of +aroda. 'ota- +a$-. S+I. Sta$dard :hartered +a$- a$d A3is +a$-& B&9D 7DFC 7o$e Loan:/ 7igh%ights:/

HD9: mar-ets its pare$t HD9:Ls home loa$ prod#cts& 9i$a$ces #p to >7H of the cost of the property 1A%reeme$t val#e S Stamp d#ty S ,e%istratio$ char%es2& Home improveme$t loa$. *hich facilitates i$ter$al a$d e3ter$al repairs a$d other str#ct#ral improveme$ts li-e pai$ti$%. *aterproofi$%. pl#m/i$% a$d electric *or-s. tili$% a$d floori$%. %rills a$d al#mi$#m *i$do*s& 9i$a$ces #p to >7H of the cost of re$ovatio$ 1A<<H for e3isti$% c#stomers2& Home e3te$sio$ loa$ for e3te$sio$ of a$ e3isti$% d*elli$% #$it #$der the same terms as applica/le to home loa$& !a$d P#rchase !oa$ to p#rchase la$d for co$str#cti$% ho#se& 9i$a$ces #p to @<H of the cost of the la$d& ,epayme$t over a ma3im#m period of A< years&

9i3ed ,ate. 9loati$% ,ate a$d optio$s to str#ct#re loa$ as partly fi3ed or partly floati$%& 9le3i/le repayme$t optio$s to s#it i$divid#al $eeds& I$s#ra$ce cover #$der Term Ass#ra$ce Pla$ Offer i$4ho#se scr#ti$y of property doc#me$ts&

E%igi+i%it*# / HD9: home loa$s are availa/le forI

P#rchase of flat. ro* ho#se. /#$%alo* from developers P#rchase of e3isti$% freehold properties P#rchase of properties i$ a$ e3isti$% or proposed co4operative ho#si$% society or apartme$t o*$erLs associatio$ P#rchase of first Po*er of Attor$ey p#rchases i$ Delhi for DDA flats allotted /efore ACC;& :o$str#ctio$ of o*$ ho#se

HD9: home loa$s ca$ /e applied for either i$divid#ally or joi$tly& Proposed o*$ers of the property *ill have to /e co4applica$ts& Ho*ever. the co4applica$ts $eed $ot /e co4o*$ers& Ma3im#m te$#re is ;< years s#/ject to retireme$t a%e& Loan A$ount: / >7H of the cost of the property 1i$cl#di$% the cost of the la$d2 a$d /ased o$ the repayme$t capacity of the c#stomer& Rate o Interest I4 The c#rre$t applica/le fi3ed rate of i$terest i$ respect of the total loa$ approved is as follo*sI 9or loa$s #p to ,s&;. <<.<<<I4

Ter$ o Loan HNo& o )earsI Up to 7 D 4 A< AA 4 A7 9or loa$s %reater tha$ ,s&;. <<.<<<

Rate 8er Annu$ HP"&aI A<&<< A<&@7 AA&<<

Ter$ o Loan HNo& o )earsI 7

Rate 8er Annu$ HP"&aI A<&<<

A< A7

AA&<< AA&;7

All loa$s o$ a$$#al rest /asis& Yo# repay the loa$ i$ )#ated Mo$thly i$stalme$ts 1 MIs2 comprisi$% pri$cipal a$d i$ertest& MI per ,s A. <<.<<< 1for loa$ #p to ,s&;. <<.<<<2

Ter$ o Loan HNo& o )earsI 7 A< A7

Ru"ees ;ACC A=<A AA7C

MI per ,s&A. <<.<<< 1for loa$ %reater tha$ ,s&;. <<.<<<2

Ter$ o Loan HNo& o )earsI 7 A< A7

Ru"ees ;ACC A=AD AA@7

Pe$di$% fi$al dis/#rseme$t. yo# pay i$terest o$ the portio$ of the loa$ dis/#rsed& This i$terest is called pre4 MI i$terest&A$ early redemptio$ char%e of ;H of the amo#$t /ei$% prepaid is paya/le o$ repayme$t of a loa$ ahead of sched#le& Re"a*$ent 8eriod: / Re"a*$ent O"tions K Ste" U" Re"a*$ent Fa-i%it*# / helps yo#$%er /orro*ers to ta-e a m#ch /i%%er loa$ today /ased o$ a$ i$crease i$ their f#t#re i$come& F%e!i+%e Loan insta%%$ents 8%an I 4 Ofte$ c#stomers. pare$ts a$d their childre$ *ish to p#rchase properties to%ether& The pare$t is $eari$% retireme$t a$d their childre$ have j#st

started *or-i$%& This optio$ helps s#ch c#stomers com/i$e the i$comes a$d ta-e a lo$% term home loa$ *here i$ the i$stalme$t red#ces #po$ retireme$t of the ear$i$% pare$t& Tran-he 3ased EMI / :#stomers p#rchasi$% a$ #$der co$str#ctio$ property $eed to pay i$terest 1o$ the loa$ amo#$t dra*$ /ased o$ level of co$str#ctio$2 till the property is ready& To help c#stomer save this i$terest. HD9: has i$trod#ced a special facility of Tra$che +ased MI& :#stomers ca$ fi3 the i$stallme$ts they *ish to pay till the time the property is ready for possessio$& The mi$im#m amo#$t paya/le is the i$terest o$ the loa$ amo#$t dra*$& A$ythi$% over a$d a/ove the i$terest paid /y the c#stomer %oes to*ards Pri$cipal repayme$t& The idea is c#stomer /e$efits /y starti$% MI a$d he$ce repays the loa$ faster& A--e%erated Re"a*$ent S-he$e provides /orro*er the opport#$ity to repay the loa$ faster /y i$creasi$% the MI& Fhe$ever the /orro*er %ets a$ i$creme$t. i$crease i$ disposa/le i$come or have l#mp s#m f#$ds for loa$ prepayme$t. they ca$ /e$efit /y savi$% of i$terest /eca#se of faster loa$ repayme$t& +orro*er ca$ /e$efit /yI I$crease i$ MI mea$s faster loa$ repayme$t Savi$% of i$terest /eca#se of faster loa$ repayme$t Yo# ca$ i$vest l#mp s#m f#$ds rather tha$ #se it for loa$ prepayme$t& The ret#r$ from the i$vestme$ts also %ives yo# the comfort of payi$% the i$creased MI&&& Do-u$ents ReAuired :/ Sa%aried Custo$ers Se% E$"%o*ed 8ro essiona%s Applicatio$ form *ith photo%raph !atest Salary4slip 9orm AD Applicatio$ form *ith photo%raph Se% E$"%o*ed 3usiness$an Applicatio$ form *ith photo%raph

d#catio$ R#alificatio$s :ertificate d#catio$ R#alificatio$s :ertificate a$d Proof of /#si$ess e3iste$ce a$d Proof of /#si$ess e3iste$ce !ast B years I$come Ta3 ret#r$s 1self a$d /#si$ess2 !ast B years Profit J!oss a$d +ala$ce Sheet +#si$ess profile !ast B years I$come Ta3 ret#r$s 1self a$d /#si$ess2 !ast B years Profit J!oss a$d +ala$ce Sheet !ast D mo$ths /a$- stateme$ts 1self a$d /#si$ess2 Processi$% fee che)#e

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

Processi$% fee che)#e

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

The :redit Appraisal is a$ importa$t step i$ sa$ctio$i$% loa$ applicatio$s &He$ce the :redit Appraiser $eeds to have certai$ importa$t doc#me$ts to comp#te the credit *orthi$ess of the applica$t &I$ the case of salaried perso$ these i$cl#de the follo*i$% I4

9I SALAR) SLI8S H< MONT7S CURRENTI :/ The salary slip is #s#ally a pri$ted sheet of paper that co$tai$s ; compo$e$ts In-o$e5Earnings -o%%u$n: / It co$tai$s a$ e3ha#stive list of the vario#s compo$e$ts that are added to the perso$s salary& They co$tai$ vario#s compo$e$ts li-e +asic pay. H,A etc& Dedu-tions :/ It co$tai$s a$ e3ha#stive list of vario#s compo$e$ts that are ded#cted from the perso$s ar$i$%s& They co$tai$ vario#s compo$e$ts li-e I$come ta3. Provide$t f#$d. mployee !oa$s etc& ;I 3ANK STATEMENTSH? MONT7S CURRENTI G4 The /a$- stateme$t co$tai$s the vario#s tra$sactio$s that the applica$t performs i$ his /a$- acco#$t& It has B compo$e$ts Date Des-ri"tions G4 It co$tai$s the /rief a$d sta$dardi?ed descriptio$ of the activity or the acco#$t related to the tra$sactio$ & %& :leari$% che)#e ADDA;C. Tra$sfer deposit& De"osits: / It co$tai$s the amo#$ts that *ere credited to the acco#$t Withdra0a% #/ It co$tai$s the amo#$ts that *ere de/ited to the acco#$t& This is caref#lly st#died to fi$d o#t a/o#t a$y re%#lar *ithdra*als or a series of chec-s so that a$y e3isti$% loa$s may /e revealed a$d there ca$ /e a correct estimate of the repayme$t capacity& 3a%an-e :/ It sho*s effect of tra$sactio$ o$ the pre e3isti$% acco#$t /ala$ce S"e-ia% eature :/ HD9: *ill $ot co$sider a$y loa$ s *ith o#t sta$di$% MI of or /elo* D mo$ths&

<2 FORM 9? :/ It is form %ive$ /y mployer *hich states the i$come ear$ed from that compa$y d#ri$% the f#ll fi$a$cial year .a$d %ives the details of Ta3 ded#cted at so#rce& =2 CO8) OF INCOME TA' RETURNHSARALI :/ The SA,A! ta3 ret#r$ form reveals the str#ct#re of i$comes a$dJor the vario#s ear$i$%s of the ta3 ret#r$ee &It also sho*s the vario#s ded#ctio$s that *ill $ot /e i$cl#ded a$d it also co$tai$s the ,e/ates o$ *hich he ear$s ta3 /e$efit& 72 RESIDENCE 8ROOF I4 The reside$ce proof i$cl#des the lectricity /ill. Telepho$e /ill. ,atio$ :ard .Passport& D2 87OTO ID 8ROOF I4 The photo proof i$cl#des the Pa$card .Koter ID card. mployee ID card. Passport etc& @2 AGE 8ROOF: / The a%e proof i$cl#des the Pa$ card. Passport. Photo ID&

>2 LOAN A88LICATION FORM DUL) FILLED I4 It ca$ also /e do*$loaded from HD9:s #ser frie$dly *e/ /ased portal&

C2 C7ARGES FOR 8ROCESSING FEES :/ This is a sta$dard a$d $omi$al fees to /e paid at the time of applyi$% for loa$ 9ees str#ct#re& <&7H of loa$ amo#$t SService ta3 of A;H 1!ess2 d#catio$ !ess of BH

O, 7DA>J4 HD9: ta-es from applica$t *hichever is less& This is applica/le time to time& A<2 PHOTO:OPI S O9 P,OP ,TY PAP ,S& NON RESIDENT INDIAN SALARIED5EM8LO)ED# / A$ N,I is a perso$ *ith I$dia$ citi?e$ship /#t residi$% i$ a$other co#$try& A$ N,I ca$ ta-e a ho#si$% loa$ from HD9:& He is ho*ever $ot eli%i/le for a Top Up loa$s.Home )#ity !oa$s.No$ ,eside$tial Premises !oa$s &He is ho*ever eli%i/le for Home Improveme$t a$d Home 3te$sio$ !oa$s from HD9: & A$ N,I !oa$ is appraised o$ the Net Salary& This is the ta-e home pay pac-a%e o/tai$ed after red#ci$% the ded#ctio$s from the ear$i$%s &As this salary is lo* it red#ces their loa$ eli%i/ility &Ho*ever the salary is co$verted i$to I$dia$ :#rre$cy for comp#ti$% credit *orthi$ess&The fi%#re o/tai$ed is hi%her i$ I$dia$ c#rre$cy he$ce the loa$ eli%i/ility rises& % 7.=>@T america$ dollars *ill mea$ ;.=D.CA7 ,#pees& SELF EM8LO)ED 8ROFESSIONALS I4 A$ N,I applica$t ca$ also /e a Doctor. $%i$eer etc&I$ these cases HD9: *ill p#t them i$ the special cate%ory of Self mployed Professio$als& Their credit appraisal is carried o#t as follo*sI4 Their latest availa/le Profit a$d !oss AJc is revie*ed /y the credit appraiser& This acco#$t has t*o sides a Profit side *hich reveals all ear$i$%s a$d %ai$s &There is also a !oss side *hich sho*s all ta3es. lia/ilities a$d losses& Fe refer to the Profit side a the (ross ,eceipts&These i$cl#des compo$e$ts reveali$% the $at#re a$d amo#$t of the Prime i$come a$d other ear$i$%s % :o$s#ltatio$ fees i$ case of Doctor & 9rom the (ross ,eceipts *e calc#late the (ross Profits a$d thereo$ move to calc#late !oa$ eli%i/ility &Fhich is the loa$ amo#$t that ca$ /e co$ve$ie$tly sa$ctio$ed to the applica$t& !oa$ li%i/ility U (ross Profit V ;

A$other importa$t co$sideratio$ is that the A$$#al o#tflo* of MIs sho#ld $ot e3ceed the N T P,O9IT& The Net Profit is comp#ted /y ded#cti$% the vario#s costs a$d losses from the (ross profit& SOURCES OF LOAN A88LICANTS 9I WALK IN :/ This refers to the Applica$ts *ho apply for the loa$ /y %oi$% to the service ce$tre or re%io$al /ra$ch office &They may have come to -$o* a/o#t HD9: s home loa$ service from a$y so#rce /#t this is their first co$tact *ith HD9: is i$ a/se$ce of a$y i$termediary li-e frie$ds. sales me$ etc&The applica$ts *ho co$tact thro#%h or /y the Fe/site are also i$cl#ded i$ the *al- i$ cate%ory& Fal-4I$ applica$ts are %ive$ co$cessio$s o$ fees a$d char%es *hich is applica/le from time to time& ;I CALLCENTRE LEADSI 4 The callce$tre leads refer to the applica$ts that come i$ co$tact *ith HD9: thro#%h HD9: +a$- or thro#%h H!SI! &HD9: /a$- is the /a$-i$% sectio$ of HD9: *hich i$forms HD9: !td a/o#t perso$s *ho it thi$-s to $eedi$% a loa$ &H!SI! *hich has /ee$ started /y HD9: !td a$d refers to Ho#si$% !oa$ Services I$dia !imited& This or%a$i?atio$ has /ee$ especially started /y HD9: to assist perso$s searchi$% for home loa$s at easy rates a$d %ood service&H!SI! co$tacts pro/a/le $eedf#ls of home loa$. co$tacts them. e3plai$s them the vario#s adva$ta%es of a$ HD9: home loa$ a$d %et their loa$ applicatio$ filled& very HD9: service ce$tre has its o*$ team *hich is ma$a%ed /y leader *ho reports diectly to the +ra$ch Ma$a%er &I$ the I$dia ha/itat ce$tre the H!SI! team is #$der the leadership of a team leader *ho reports directly to Mr& Prasha$t Mali-1+ra$ch M%rIH: J,a$-ed ;$d i$ the presti%io#s Natio$al :orporate :halle$%e ;<<7 co$d#cted a$$#ally /y HD9: 2 <I DSAs and 3SAsG 4 These are respectively the Direct selli$% a%e$ts a$d the +#si$ess selli$% a%e$ts&the DSAs refer to or%a$i?atio$s *hich *or- i$ a%reeme$t *ith HD9: a$d for*ards them the loa$ re)#ests of applica$ts they co$tact or those that co$tact them o$ the other ha$d +SAs #s#ally for*ard loa$ re)#ests a$d assist HD9: /y for*ardi$% them the $ames addresses co$tact $os etc of vario#s pro/a/le $eedf#ls of home loa$s +SAs #s#ally are +#ilders *ho /oo- ho#ses for sale i$ the f#t#re& they may also i$cl#de +ro-ers& %s for DSAs are Nish-.:hatrath.+'M&etc De"osits: Indi.idua%s: 4 these areI4 9i3ed ,ate Deposits Karia/le ,ate Deposits HD9: has i$stit#ted *ell4defi$ed service sta$dards for /oth depositors a$d deposit a%e$ts& HD9: has /ee$ a/le to mo/ilise deposits from over A< lac depositors& O#tsta$di$% deposits %re* from ,s& A.=7> crores i$ March ACC= to AC.B7C crores i$ March ;<<C& M#ch of this s#ccess ca$ /e attri/#ted to its stro$% /ra$d ima%e. s#perior services. sec#rity a$d a/ove all. the si%$ifica$t co$tri/#tio$ made /y HD9:Ls deposit a%e$ts& HD9: has over A7.<<< deposit a%e$ts a$d distri/#tes all its retail savi$%s 1deposit2 prod#cts primarily thro#%h this cha$$el&

HD9: has /ee$ a*arded AAA" rati$% for its deposits from /oth :,ISI! a$d I:,A for the FOURTEENT7 co$sec#tive year. represe$ti$% hi%hest safety as re%ards timely payme$t of pri$cipal a$d i$terest& The pro/lem of Ne%ative Amorti?atio$ is specific to the Adj#sta/le or the Karia/le rate loa$s that are le$t to c#stomers& I$ the case of Karia/le rate home loa$s there are three compo$e$tsI4 ,P!, E A=H 1:U,, NT2 SP, AD E BH 1:U,, NT2 ,OI4 AAH The term ,P!, is short for ,etail Prime !e$di$% ,ate& this rate is depe$de$t o$ mar-et forces &I$ I$dia the ,P!, has /ee$ o/servi$% a$ #p*ard tre$d &As a res#lt of this there is a cha$%e i$ rate of i$terest to /e applied to differe$t loa$s&,P!, is revised every B mo$ths I$ *hich it may or may $ot cha$%e& Spread refers to a special disco#$t offered to loa$ applica$ts comi$% to HD9:&this disco#$t is fi3ed /y HD9: & very loa$ applica$t is eli%i/le to receive this disco#$t from HD9: !td&It helps create a mar-et adva$ta%e a$d /e$efits the Applica$ts&Spread is fi3ed for a$ #$certai$ le$%th of time &It is a/sol#tely depe$de$t o$ the compa$ys discretio$ to cha$%e it or $ot& :#rre$tly HD9: is offeri$% ;&7H spread o$ a loa$ of a/ove ;< lacs a$d BH spread o$ a loa$ of /elo* ;< lacs& ,OI is the rate of i$terest that is applica/le to the loa$ at the time of le$di$%& It is comp#ted /y s#/tracti$% spread disco#$t from the ,P!,& at the time of le$di$% the ,OI is %ood e$o#%h to repay the i$terest as *ell as the pri$cipal compo$e$ts &Ho*ever as the ,P!, i$creases as it is /o#$d to do so after some time the re)#ired MI also i$creases &He$ce after some time the MI /ecomes i$s#fficie$t to repay the pri$cipal as *ell as the i$terest compo$e$t &

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

Data $try

Dis/#rseme$t of loa$ The Loan

9i3ed char%es

Do#/le:hec-i$% Over1D:OK,2

,ecomme$datio$ Over1,OK,2

The represe$tatio$ sho*$ a/ove is $ot a perfect copy of the act#al process& This is /eca#se these sta%es are ta-i$% place sim#lta$eo#sly a$d o$e applicatio$ is /ei$% ta-e$ care for /y the e3perie$ced employees of /oth HD9: !td service ce$tre a$d HD9: !td HU+ 1also called the /ac- e$d office2&Also the applica$t may /e as-ed to se$d i$formatio$ or may /e as-ed )#estio$s re%ardi$% his re)#ireme$t a$dJor his doc#me$ts for his o*$ co$ve$ie$ce He$ce the loa$ applicatio$ may or may $ot sh#ttle thro#%h differe$t sta%es& A88LICATION STAGE I4 This is the sta%e *here the Applicatio$ 9orm first reaches the co$cer$ed Service :e$tre Here all the doc#me$ts i$ the applicatio$ are revie*ed /y the e3perie$ced staff prese$t at the service ce$tre The HD9: !td employee *ho revie*s the file chec-s to see *hether all doc#me$ts are prese$t a$d i$ their proper place &He chec-s if the doc#me$ts are d#ly filled.$ot fa-e.attested /y a#thority i$ )#estio$ a$d prese$t i$ order&I$ case a$y doc#me$t is missi$% the applica$t is co$tacted electro$ically or /y mail &The applica$t is co$tacted /y telepho$e a$d re)#ested for the doc#me$t #$til he de$ies it /ei$% *ith him& This e3ercise is called 9O!!OF UP& the credit appraisal of the loa$ applicatio$ starts at this sta%e& The service ce$tre employees comp#te the %ross salary. II,. 9OI,. !oa$ li%i/ility ratio etc&The credit *orthi$ess of the applica$t is calc#lated here& It is also at this sta%e that the RUI:' DATA NT,Y of the loa$ applicatio$ is do$e to create a serial $o& of the applicatio$& after that a$other pa%e appears a$d more data is e$tered &It is $o* that a special a$d #$i)#e !OAN AJ: NO& is created #$der *hich all the loa$ processes *ill /e carried o#t& The $#m/er that has /ee$ %e$erated is comm#$icated to the applica$t /y mea$s of a letter a$dJor electro$ic comm#$icatio$ the system of electro$ically recordi$% the data helps to create ready refere$ce. a proof .helps i$ )#ic- a$d easy processi$% of the data& It also helps to very easily a$d )#ic-ly share data *ith other employees of HD9:& The $e3t a$d importa$t processi$% performed at the service ce$tre is that of filli$% #p a doc#me$t -$o*$ as the INT ,KI F SH T& for processi$% i$divid#al loa$s 1salaried cases2 &It co$tai$s vario#s simple e$tries li-e I4 A& Name of /orro*er ;& Name of co4/orro*er B& I$come detailsI49amily /ac-%ro#$d a$d perma$e$t address etc& It also co$tai$s vario#s importa$t e$tries li-e& 7& (ross Salary D& ,e$tal @& Other i$comes >& O/li%atio$sI 4 The vario#s other loa$s that the applica$t is e$titled to pay .their amo#$t. their remai$i$% terms .so#rce etc& C& ,emar-sG4 This coll#m$ co$tai$s the vario#s fi$di$%s that the employee has fo#$d o#t after thoro#%h revie* of the applica$ts doc#me$ts s#ch as /a$- stateme$t. salary slip etc& He$ce the i$tervie* sheet co$tai$s the importa$t fi$di$%s *hich the employee has collected after caref#l revie* of the vario#s doc#me$ts &The i$tervie* sheet helps to c#t

cor$ers a$d helps save time /y $ot havi$% other employees to %o thro#%h the doc#me$ts a%ai$ a$d a%ai$ &It he$ce acts as a so#ce of )#ic- refere$ce& After all this has /ee$ performed *ell e$o#%h the loa$ applicatio$ *ill /e arra$%ed i$ a file a$d all it *ill /e %ive$ its loa$ aJc $o *hich also acts as its file $o& the file is $o* ready to /e se$t to the HU+ *here f#rther processi$% *ill ta-e place& SCANNING: / I$ this sta%e the vario#s importa$t doc#me$ts of the applica$t are sca$$ed& this helps to create their electro$ic copy *hich acts as a ready refere$ce. a proof. a$d ca$ also /e shared a$d #tili?ed /y other employees of HD9: !td& DATA ENTR) I4 The file has /ee$ se$t to the /ac- e$d office or the HU+ &At HU+ there are ma$y e3perts *ith their o*$ speciali?atio$s & these officials revie* the vario#s parts of the filae a%ai$ a$d perform ma$y speciali?ed tas-s Data e$try is also o$e of these tas-s &this e$try is m#ch more differe$t a$d comple3 as compared to the earlier performed R#ic- Data $try& A$ e3ha#stive amo#$t a$d type of i$formatio$ has to /e e$tered i$to the I!PS system ra$%i$% from Perso$al Details. mployme$t Details to Property ,ate History a$d :#stomer I$teractio$s& RECOMMENDATION O(ER HRO(RI I4 The ,ecomme$datio$ OK , is also reffered to as the 9irst Appraisal at this sta%e certai$ specially appoi$ted perso$s have /ee$ %ive$ the respo$si/ility of recomme$di$% a loa$& These people have to ta-e special care of revie*i$% every doc#me$t. a$d all the small details that $eed to /e co$sidered /efore co$sideri$% the loa$ applicatio$ to /e valid& After this the file is se$t to a$other specially appoi$ted perso$ as e3plai$ed /elo*& At this sta%e if a$y correctio$ or mista-e is prese$t it ca$ /e se$t /ac- to the Service :e$tre& DOU3LE C7ECKING O(ER I4 As the $ame s#%%ests at this sta%e a specially appoi$ted perso$ *ill do#/le chec- all the past proceedi$%s &He *ill e3ami$e the !oa$ file for a$y discrepa$cies .a$y missi$% a$d Jor misplaced doc#me$ts.the :redit Appraisal res#lts.etc&this is a very importa$t sta%e a$d m#st /e ha$dled *ith e3ceptio$al care& This is /eca#se a mista-e at this sta%e ca$ ca#se a %reat loss to the compa$y&The Do#/le chec-er is respo$si/le for the #ltimate sa$ctio$i$% of the loa$ &If a$y mista-e is do$e at this sta%e there is $o %oi$% /ac- a$d he$ce $o protectio$&HD9: ta-es %reat care *hile appoi$ti$% do#/le chec-ers &They sho#ld have completed a select $#m/er of years *ith the compa$y a$d sho#ld have sho*$ e3emplary performa$ce a$d m#st posses e3perie$ce& SANCTIONING :/ A$ a#thori?ed sa$ctio$i$% a#thority *ithi$ HD9: itself *ill revie* the remar-s of Do#/le :hec-er a$d Sa$ctio$i$% a#thority &If it co$siders the loa$ s#ita/le to /e Sa$ctio$ed it %ives its approval &After it has %ive$ its approval stamp the I!PS system *ill a#tomatically se$d a letter to the Applica$t that his loa$ has /ee$ sa$ctio$ed& After this approval the Applica$t ca$ %o to *hichever Service :e$tre *hich he selects to %et his loa$ dis/#rsed& S8ECIAL CASE :/ A special case ca$ arise if the applica$t has $ot me$tio$ed the property for *hich he *a$ts to ta-e a loa$ &I$ that case the applica$t ca$ let the case /e

remai$ pe$di$% & this mea$s that the Applica$ts loa$ re)#est *ill /e co$sidered to /e complete eve$ tho#%h he has $ot decided the property& Ho*ever the Applica$t is e3pected to fi$alise the property i$ a short time& A Property Address is $ecessary to A& %et the loa$ dis/#rsed ;& Process the !e%al a$d Tech$ical Appraisal of the property a$d its Papers&

DIS3URSEMENT: / The last a$d fi$al sta%e i$ the Home !oa$ process is that of dis/#rseme$t& after the sa$ctio$i$% has ta-e$ place the applica$t /ecomes a re%istered c#stomer of HD9: !td & He ca$ $o* ta-e the dis/#rseme$t of the loa$ from a$y of the vario#s service ce$tre of HD9: &The loa$ shall /e dis/#rsed i$ o$e !#mp s#m or i$ s#ita/le i$stallme$ts to /e decided /y HD9: *ith refere$ce to the $eed a$dJor pro%ress of co$str#ctio$ 1*hich decisio$ shall /e fi$al a$d /i$di$% o$ the /orro*er2&The /orro*er here/y ac-$o*led%es the receipt of the loa$ dis/#rsed as i$dicated i$ the receipt&

C7A8TER/?

C7A8TER/? COM8AN) 8ROFILE OF 7DFC 7OSING DE(ELO8MENT FINANCE COR8ORATION LTD INTRODUCTIONI4
7ousing De.e%o"$ent Finan-e Cor"oration Li$ited . fo#$ded AC@@ /y ,avi Ma#rya a$d Hasm#-h/hai Pare-h. is a$ I$dia$ N+9:. foc#si$% o$ home mort%a%es& HD9:Ls distri/#tio$ $et*or- spa$s ;=B o#tlets that i$cl#de =C offices of HD9:Ls distri/#tio$ compa$y. HD9: Sales Private !imited& I$ additio$. HD9: covers over C< locatio$s thro#%h its o#treach pro%rammes& HD9:Ls mar-eti$% efforts co$ti$#e to /e co$ce$trated o$ developi$% a stro$%er distri/#tio$ $et*or-& Home loa$s are also Sharc-et thro#%h HD9: Sales. HD9: +a$- !imited a$d other third party Direct Selli$% A%e$ts 1DSA2& HD9: I$corporated i$ AC@@ *ith a share capital of ,s A< :rores. HD9: has si$ce emer%ed as the lar%est reside$tial mort%a%e fi$a$ce i$stit#tio$ i$ the co#$try& The corporatio$ has had a series of share iss#es raisi$% its capital to ,s& AAC :rores& The %ross premi#m i$come for the year e$di$% March BA. ;<<@ stood at ,s& ;.>7D :rores a$d $e* /#si$ess premi#m i$come at ,s& A.D;= :rores& The compa$y has covered over >.@@.<<< lives year e$di$% March BA. ;<<@& HD9: operates thro#%h almost =7< locatio$s thro#%ho#t the co#$try *ith its corporate head )#arters i$ M#m/ai. I$dia& HD9: also has a$ I$ter$atio$al Office i$ D#/ai. UA *ith service associates i$ '#*ait. Oma$ a$d Ratar& HD9: is the lar%est ho#si$% compa$y i$ I$dia for the last ;@ years& SNA8S7OT/I I$corporated i$ AC@@ as the first speciali?ed Mort%a%e :ompa$y i$ I$dia& Almost C<H of i$itial shareholdi$% i$ the ha$ds of domestic i$stit#tes a$d retail i$vestors& :#rre$t @@H of shares held /y forei%$ i$stit#tio$al i$vestors&

+esides the core /#si$ess of mort%a%e HD9: has evolved i$to a fi$a$cial co$%lomerate *ith holdi$%s I$I

C7ART:/ ?&9

7DFC LTD

@;&;?P 7DFC STANDARD LIFE

?DP 7DFC ASSET MANAGEMENT

;<&;?P 7DFC 3ANK Hinclusive

HD9: Sta$dard !ife i$s#ra$ce :ompa$y4 HD9: holds @;&;D H& HD9: Asset Ma$a%eme$t :ompa$y E HD9: holds D<H HD9: +a$-4 HD9: holds ;B&;DH& I$tele$et (lo/al 1+#si$ess Process O#tso#rci$%2 E HD9: holds 7<H& HD9: :h#// (e$eral I$s#ra$ce :ompa$y E HD9: holds @=H&

SNA8S7OT/II !oa$ Approvals 1Up to Dec ;<<@2 !oa$ Dis/#rseme$ts 1Up to Dec& ;<<@2 Ho#si$% U$its fi$a$ced Distri/#tio$ Offices O#treach Pro%rams A>A C< ,s& ><7 /illio$& 1US T A>&B< /$&2 ,s&DDC /illio$ 1US T A7&;< /$2 ;&7 millio$&

7DFC Li$ited

jjjjjjjj

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

P#/lic 1+S I 7<<<A<2 AC@@ M#m/ai.I$dia ,avi Ma#rya Hasm#-h/hai Pare-h Ho#si$% 9i$a$ce UST A&=C /illio$ 1;<<>2 A.<;C ***&hdfc&com :/

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

Mr& Dee"a1 S 8are1h: / serves as 3ec#tive :hairma$ a$d :hief 3ec#tive Officer of the +oard of Ho#si$% Developme$t 9i$a$ce :orp& !td&. 1HD9:2& He joi$ed HD9: !imited i$ a se$ior ma$a%eme$t positio$ i$ AC@>& He *as i$d#cted as a *hole4time director of HD9: !imited i$ AC>7 a$d *as appoi$ted as its 3ec#tive :hairma$ i$ ACCB& He is the :hief 3ec#tive Officer of HD9: !imited& Mr& Pare-h is a 9ello* of the I$stit#te of :hartered Acco#$ta$ts 1 $%la$d 5 Fales2& Mr& K&$ $istr*: / The Ma$a%i$% Director of the :orporatio$& He has /ee$ employed *ith the :orporatio$ si$ce AC>A a$d *as the e3ec#tive director of the :orporatio$ si$ce ACCB& He *as appoi$ted as the dep#ty ma$a%i$% director i$ ACCC a$d the Ma$a%i$% Director i$ ;<<<& He is also a mem/er of the I$vestors6 (rieva$ce :ommittee of Directors& Ms& Renu S& Karnad: / The 3ec#tive Director of the :orporatio$& She has /ee$ employed *ith the :orporatio$ si$ce AC@> a$d *as appoi$ted as the 3ec#tive Director of the :orporatio$ i$ ;<<<& She is respo$si/le for overseei$% all aspects of le$di$% operatio$s of HD9:&Ne* Delhi& 3OARD OF DIRECTORS:/ Mr& D S Pare-h 4 :hairma$ Mr& 'esh#/ Mahi$dra 4 Kice :hairma$ Mr& D N (hosh Dr& S A Dave

Ms& ,e$# S& 'ar$ad 4 3ec#tive Director Mr& ' M Mistry 4 Ma$a%i$% Director Mr& Shirish + Patel Mr& + S Mehta

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

GROU8 COM8ANIES:/ HD9: +a$-I Forld :lass I$dia$ +a$-4 amo$% the top private /a$-s i$ I$dia& HD9: AM:I O$e of the top B AM:s i$ I$dia4 Preferred i$vestme$t ma$a%er& I$tele$et (lo/alI +PO services for i$ter$atio$al c#stomers& :I+I!I :redit I$formatio$ +#rea# I$dia !imited& HD9: :h#//I Upcomi$% Private compa$ies i$ the field of (e$eral I$s#ra$ce& HD9: M#t#al 9#$d HD9: reality&comI Helps to search properties i$ all major cities i$ I$dia HD9: sec#rities HD9: Sta$dard !ife I$s#ra$ce :ompa$y !td A#%. ;<<< >OINT (ENTURE

HD9: Sta$dard !ife I$s#ra$ce :ompa$y !imited *as o$e of the first compa$ies to /e %ra$ted lice$se /y the I,DA to operate i$ life i$s#ra$ce sector& ,each of the 0K player is hi%hly rated a$d /ee$ co$ferred *ith ma$y a*ards& HD9: is rated MAAA6 /y /oth :,ISI! a$d I:,A& Similarly. Sta$dard !ife is rated MAAA6 /oth /y Moody6s a$d

Sta$dard a$d Poor6s& These reflect the efficie$cy *ith *hich HD9: a$d Sta$dard !ife ma$a%e their asset /ase of ,s& A7.<<< :r a$d ,s& D<<.<<< :r& respectively& HD9: Sta$dard !ife I$s#ra$ce :ompa$y !td *as i$corporated o$ A=th A#%#st ;<<<& HD9: is the majority sta-eholder i$ the i$s#ra$ce 0K *ith >A&=H staple a$d Sta$dard of as a staple A>&DH Mr& Deepa- Sat*ale-ar is the MD a$d : O of the ve$t#re& HD9: Sta$dard !ife I$s#ra$ce :ompa$y !td& Is o$e of I$dia6s leadi$% Private !ife I$s#ra$ce :ompa$ies. *hich offers a ra$%e of i$divid#al a$d %ro#p i$s#ra$ce sol#tio$s& It is a joi$t ve$t#re /et*ee$ Ho#si$% Developme$t 9i$a$ce :orporatio$ !imited 1HD9: !td&2 I$dia6s leadi$% ho#si$% fi$a$ce i$stit#tio$ a$d the Sta$dard !ife Ass#ra$ce :ompa$y. a leadi$% provider of fi$a$cial services from the U$ited 'i$%dom& +oth the promoters are *ill -$o*$ for their ethical deali$%s a$d fi$a$cial stre$%th a$d are th#s committed to /ei$% a lo$%4term player i$ the life i$s#ra$ce i$d#stry4 all importa$t factors to co$sider *he$ choosi$% yo#r i$s#rer& 3usiness Gro0th:/ The compa$y comma$ds a mar-et share of over D<H i$ the ho#si$% fi$a$ce sector& !evera%i$% o$ its /ra$d e)#ity HD9: has also e$tered the I$dia$ M#t#al 9#$d sce$e )#ite rece$tly& HD9: *as the o$ly applica$t to /e %ive$ cleara$ce /y the %over$me$t. to e$ter the ,s ;7< /$ life i$s#ra$ce /#si$ess& This i$ itself spea-s vol#mes a/o#t the ma$a%eme$t6s professio$al rep#tatio$& 9i$a$cial year ;<<< proved to /e a /oo$ for ho#si$% fi$a$ce compa$ies. as the ta3 /e$efits a$$o#$ced i$ the /#d%et. co#pled *ith the lo* real estate prices a$d risi$% disposa/le i$comes. sp#rred ho#si$% dema$d& As a res#lt. dema$d for ho#si$% fi$a$ce too has re%istered hi%h rates of %ro*th& The ho#si$% sector has $o* /ee$ reco%$i?ed as a$ e$%i$e of eco$omic %ro*th a$d HD9: is *ell placed to capitalise o$ this s#r%e i$ dema$d& A%ai$st this /ac-drop. HD9: lo%%ed i$ a$ e3celle$t performa$ce& The compa$y6s approvals a$d dis/#rseme$ts d#ri$% the first half of fi$a$cial year ;<<A *it$essed a year o$ year %ro*th of BBH a$d B;H respectively& The ro/#st %ro*th i$ itself is a co$cl#sio$ that HD9:6s /#si$ess is far less s#scepti/le to a$y eco$omy do*$t#r$& HTA3LE:/?&;I Finan-ia% Sna"shot Gro0th ratios Operati$% i$come Other i$come Net profits F)FC AB&@H F)FF ;A&DH F)DD A7&;H 97F)D9 ;A&AH B=D&>H AC&>H

BBA&@H 4;=&DH 47=&<H A>&BH AB&>H ;<&=H

Approvals Dis/#rseme$ts

;>&CH BA&AH

;7&;H ;=&=H

B<&BH BA&;H

BB&=H BA&7H

H cha$%e compared to correspo$di$% previo#s period The e$try of $e* players has $ot i$ a$y *ay si%$ifica$tly red#ced HD9:6s domi$atio$ i$ terms of vol#me& Ho*ever. the i$creased competitio$ has led to a decli$e i$ i$terest spread 1the differe$ce /et*ee$ i$terest i$come ear$ed a$d i$terest paid2& Over the last co#ple of years HD9:6s spread has shr#$- from ;&AH i$ fi$a$cial year ACC@ to A&>H i$ fi$a$cial year ;<<<& Fhe$ it comes to co$tai$i$% ris-. the compa$y6s trac- record is amo$% the /est i$ the fi$a$cial sector& D#ri$% the fi$a$cial year ;<<<. HD9: has red#ced the )#a$t#m of loa$s *here payme$t *as i$ arrears to j#st <&CH of its portfolio& This is /eca#se i$divid#als acco#$t for $early @<H of its total o#tsta$di$% loa$s& The hi%h level of a$ i$divid#al i$vestor6s perso$al co$tri/#tio$ i$ a ho#se ma-es the possi/ility of defa#lt less li-ely& I$ -eepi$% *ith its traditio$ of playi$% safe. HD9: is diversifyi$% its /#si$ess& The compa$y has chose$ the ac)#isitio$ ro#te to i$crease its assets a$d c#stomer /ase i$ its core /#si$ess of ho#si$% fi$a$ce& Its rece$t ac)#isitio$ of Home Tr#st Ho#si$% 9i$a$ce a$d (r#h 9i$a$ce *ill $ot o$ly i$crease its si?e /#t *ill also /ri$% the eco$omies of scale& Apart from these traditio$al methods of %ro*i$%. HD9: is also levera%i$% the I$ter$et to co$solidate its /#si$ess& It has pic-ed #p a sta-e i$ vario#s portals& These are p#re i$vestme$ts to dra* sy$er%ies for its e3isti$% /#si$esses& Its proposed ve$t#re *ith T:S for setti$% #p call ce$tres ca$ pote$tially provide HD9: *ith stro$% reve$#e streams& The ve$t#re is aimed at cor$eri$% a share of TA< /$ IT 1i$formatio$ tech$olo%y2 e$a/led services mar-et *here I$dia has a si%$ifica$t cost adva$ta%e& Fhile its i$vestme$ts i$ $e* /#si$ess may $ot yield immediate ret#r$s. they are li-ely to e$ha$ce HD9:6s ret#r$s o$ e)#ity over the medi#m term& It *ill also help i$ e3pa$di$% its c#stomer /ase a$d provide more crede$ce to its cross4selli$% efforts& HD9: derives a$ ed%e i$ all its forays /eca#se of its *ide reachi$% mar-eti$% a$d distri/#tio$ $et*or- 1over ==.<<< a%e$ts2& O$ce it has the e$tire ra$%e of prod#cts 1post i$s#ra$ce2. the compa$y has pla$s to e$ter i$to distri/#tio$ of fi$a$cial prod#cts /y levera%i$% its o*$ as *ell as the $et*or- of HD9: +a$-& The compa$y ca$ levera%e its e3isti$% cha$$els to provide the prod#cts a$d services i$ the areas of I$fotech services. asset ma$a%eme$t. life i$s#ra$ce a$d commercial /a$-i$%& This over a lo$%er time frame ca$ emer%e as a major so#rce of reve$#e for the compa$y& The compa$y6s proactivity a$d /ra$d $ame. has al*ays accorded it premi#m val#atio$s o$ the /o#rses& +#t the evide$ce of i$creasi$% competitio$ 1from S+I a$d I:I:I2 may lead to slo* do*$ i$ its %ro*th. i$ t#r$ affecti$% its c#rre$t val#atio$s& Nevertheless. if its i$vestme$ts i$ $e* ve$t#res li-e call ce$tres. m#t#al f#$ds. i$s#ra$ce a$d I$ter$et i$itiatives clic-. the$ HD9: loo-s set for hi%her %ro*th a$d he$ce. val#atio$s& Also o$e sho#ld $ot i%$ore the val#e of its ;@H sta-e i$ HD9: +a$- 1I$dia6s No& A private sector /a$-2. *hich *ill pay rich divide$ds to the compa$y&

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

3USINESS O3>ECTI(ES:/ The primary o/jective of HD9: is to e$ha$ce reside$tial ho#si$% stoc- i$ the co#$try thro#%h the provisio$ of ho#si$% fi$a$ce i$ a systematic a$d professio$al ma$$er. a$d to promote home o*$ership& A$other o/jective is to i$crease the flo* of reso#rces to the ho#si$% sector /y i$te%rati$% the ho#si$% fi$a$ce sector *ith the overall domestic fi$a$cial mar-ets& ORGANISATIONAL GOALS:/ HD9:Ls mai$ %oals are to I4 a2 develop close relatio$ships *ith i$divid#al ho#seholds. /2 mai$tai$ its positio$ as the premier ho#si$% fi$a$ce i$stit#tio$ i$ the co#$try. c2 tra$sform ideas i$to via/le a$d creative sol#tio$s. d2 provide co$siste$tly hi%h ret#r$s to shareholders. a$d e2 to %ro* thro#%h diversificatio$ /y levera%i$% off e3isti$% clie$t /ase& I$ additio$ to home /#ildi$% loa$s. HD9: also offers home e3te$sio$. home improveme$t a$d home co$versio$ loa$s& It also helps to ide$tify a$d val#e properties& HD9: also offers depository services i$ form of term deposits&

T*"es o 8rodu-ts o ered

HD9: provide loa$s to meet all yo#r re)#ireme$ts for yo# to ma-e that ho#se a home& 7o$e I$"ro.e$ent Loan 7o$e E!tension Loan Loans to "ro essiona%s or o i-e or -%ini-& 7o$e EAuit* Loans HLoan Against 8ro"ert*I Loan against Rent re-ei.a+%es Short Ter$ 3ridging Loan& Loans to "ro essiona%s or non/residentia%s "re$ises %oan

Ke* Asso-iates and Su+sidiaries: / These areI4 7DFC 3ANK:/ ;B&;DH o*$ed /y HD9:1i$cl#sive of *arra$ts2 Mar-et :ap US T AA /illio$ AD,s listed o$ NYS

I$ 9e/r#ary ;<<>. HD9: +a$- /oard approved the mer%er *ith :e$t#rio$ +a$- of P#$ja/ W:+OPX 1A share of HD9: +a$- for ;C Shares of :+OP2 A.=A; /ra$ches. 7;> cities. ;.>C< ATMs Over A; millio$ c#stomer acco#$ts 'ey /#si$ess areas

Y Fholesale /a$-i$% ,etail /a$-i$% Treas#ry operatio$s 9i$a$cials 1as per I$dia$ (AAP2 for the half year e$ded Sept B<. ;<<> E Total $et reve$#esI ,s =>&;D /$. i$crease of 7AH over previo#s year E PATI ,s C&C; /$. i$crease of ==H over the previo#s year 7DFC Standard Li e Insuran-e Co$"an* Ltd& H7DFC/SLI :/

Stru-ture: / Stro$% a$d sta/le part$ershipI4 Tie #p *ith Sta$dard !ife Ass#ra$ce :ompa$y. U&'& HD9: holds @;&;DH of the e)#ity of HD9:4S! 8rodu-ts: / Diversified prod#ct portfolio coveri$% all life sta%es a$d $eedsI4 Offers ;< i$divid#al prod#cts a$d 7 %ro#p pla$s alo$% *ith 7 optio$al riders Offers > f#$d optio$s *ith mar-et li$-ed prod#cts 8re$iu$ in-o$e and gro0thI 4 Kal#es drive$ %ro*thI4 Total premi#m i$come of ,s& =>&7C /$ for 9Y <@4<> 1Previo#s year ,s ;>&7D /$2G reflecti$% a %ro*th of @<H RA <>4<C %ro*th i$ total premi#m of B=H over RA <@4<> 9#$ds #$der ma$a%eme$t of %ro#p $e* /#si$ess i$creased /y >H i$ as at 0#$e B<. ;<<> as a%ai$st the previo#s year& Co.erage: / Co$$itted to in-reasing -o.erage in an under/insured $ar1et :/ Achieved a total s#m ass#red of ,s& BB&A; /$ i$ respect of <&;7 millio$ lives covered i$ RA <C ta-i$% the c#m#lative s#m ass#red to ,s& C<@&7 /$ coveri$% over B&DD millio$ lives :laims other tha$ *ithdra*alsJs#rre$ders amo#$ted to ,s <&<C /$ & Distri+ution: / Diversified distri/#tio$ $et*or- to cater to c#stomer prefere$ceI 4 HD9: $et*or- is #sed to cross sell /y offeri$% c#stomi?ed prod#cts Operates o#t of 7@7 offices across the co#$try servi$% over=7< locatio$s Net*or- of over A.D;.<<< fi$a$cial co$s#lta$ts. B@C corporate a%e$ts a$d other sales i$termediaries & Mar1et share: / Mar-et share of @&BH 1private sector2 a$d =&@H 1overall2 i$ terms of ffective Premi#m& Ke* "er or$an-e indi-ators and +usiness "ra-ti-es: /A diversified distri/#tio$ mi3 i$cl#di$% the tied a%e$cy a$d alter$ate cha$$els +a$-s. /ro-ers. telemar-eti$%. direct sales force Tied a%e$cy co$tri/#ted D=H effective premi#m i$ RA <C Stro$% /a$- ass#ra$ce tie4#ps *ith p#/lic. private. co4 operative a$d forei%$ /a$-s amo$%st the leadi$% players i$ the pe$sio$s se%me$t !evera%i$% tech$olo%y to stre$%the$ processes& For-flo* system a*arded the /est tech$olo%y i$$ovatio$ Fe/ /ased facility to service c#stomers a$d cha$$el part$ers 7DFC ASSET MANAGEMENT:/ Tie4#p *ith Sta$dard !ife I$vestme$ts 1S!I2 HD9: holds D<H of HD9: Asset Ma$a%eme$t HD9: M9 offers B= e)#ity a$d de/t orie$ted prod#cts ar$ed a Profit after Ta3 of ,s A&A> /illio$ for 9Y<>G ,et#r$ o$ )#ityI @7H Paid a divide$d of A7<H for 9Y<> to e)#ity shareholders

Total assets #$der ma$a%eme$t 1AUM2 as at Septem/er B<. ;<<>. stood at ,s& D=@ /$ *hich is i$cl#sive of portfolio ma$a%eme$t a$d advisory Services of ,s& A@< /$& )#ity assets as a proportio$ of the m#t#al f#$d6s AUM is B7H&

7DFC 8RO8ERT) FUND:/ !a#$ched i$ March ;<<7 9irst SchemeI HD9: I$dia ,eal state 9#$d E 9#$d corp#sI US T ;7< millio$ E f#lly i$vested E Domestic. @ year close e$ded f#$d E 9#$ds ma$a%ed /y HD9: Ke$t#re :apital !imited HD9: I$ter$atio$al 9#$d E 9#$d :orp#sI UST ><< millio$ E I$ter$atio$al. C year close e$ded f#$d E Tar%eted at premier i$stit#tio$s a$d f#$ds across the *orld I$terested i$ ta-i$% a$ e3pos#re i$ I$dia$ real estate& 7DFC ERGO GENERAL INSURANCE COM8AN) LTD:/ HD9: holds @=H a$d ,(O 1(erma$y2 holds ;DH The compa$y offers A#to I$s#ra$ce. Home I$s#ra$ce. (ro#p Accide$t I$s#ra$ce. (ro#p Travel I$s#ra$ce. :ommercial I$s#ra$ce *hich i$cl#des 9ire a$d Mari$e a$d Specialty I$s#ra$ce Prod#cts li-e Directors 5 Officers !ia/ility & Achieved (ross Fritte$ Premi#m of ,s& ;&= /$& Operates o#t of ;> locatio$s across the co#$try HD9: $et*or- is #sed to cross sell Home I$s#ra$ce 5 Accide$t I$s#ra$ce HD9: a$d HD9: +a$- data/ase is #sed to cross sell Accide$t I$s#ra$ce&

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

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

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

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

CB ;=&<? C9D&FF

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

DISTRI3UTION NETWORK: / HD9:6s distri/#tio$ $et*or- spa$s ;7= o#tlets that i$cl#de 7= offices of HD9:6s distri/#tio$ compa$y. HD9: Sales Private !imited 1HSP!2& I$ additio$. HD9: covers over C< locatio$s thro#%h its o#treach pro%rammes& Distri/#tio$ cha$$els form a$ i$te%ral part of the distri/#tio$ $et*or- *ith home loa$s /ei$% distri/#ted thro#%h HSP!. HD9: +a$- !imited a$d other third party direct selli$% associates& To cater to $o$4reside$t I$dia$s. HD9: has offices i$ !o$do$ a$d D#/ai a$d service associates i$ '#*ait. Oma$. Ratar. Sharjah. A/# Dha/i a$d Al 'ho/ar. 0eddah a$d ,iyadh i$ Sa#di Ara/ia&

7DFC 7OME LOAN AD(ANTAGE :/ Home loa$ co#$selli$% shari$% over B< years of home loa$ e3perie$ce Door step service Helps i$ fi$di$% Dream home Fide Prod#ct ,a$%e M#ltiple ,epayme$t Optio$ Fide Net*or- of fi$a$ci$% Post dis/#rseme$t service !oa$ repayme$t optio$

AWARDS G ACCOLADES:/ (oldma$ Sachs has listed HD9: as o$e amo$% top @ fi$a$cial services or%a$i?atio$ i$ ;<<>& HD9: ra$-ed amo$% the top B +est Ma$a%ed :ompa$ies i$ I$dia /y 9i$a$ce Asia i$ ;<<@ Selected as the /est I$dia$ compa$y i$ the 9Is J N+9:s J 9i$a$cial Services sector at the D#$ 5 +radstreet E America$ 3press :orporate A*ards ;<<D a$d ;<<@& +est I$vestme$t Ma$a%eme$t :ompa$y i$ I$dia /y U,OMON Y ;<<@ HD9: *as a*arded a rati$% of = o#t of 7 i$ 'armayo%Ls M:orporate Social ,espo$si/ility ,ati$%s6 i$ ;<<@& HD9: is feat#red i$ the !imca +oo- of ,ecords ;<<D. for the la$dmarachieveme$t of ,s& O$e trillio$ i$ home loa$ approvals HD9: *as a*arded the (old Shield i$ the 9i$a$ce Sector /y I:AI for e3celle$ce i$ 9i$a$cial ,eporti$% i$ ;<<7& This is the A=th time HD9: has /ee$ selected for this a*ard& HD9: has /ee$ a*arded the L+#si$ess S#per/ra$dL stat#s& HD9: has /ee$ a*arded the L+est Home 9i$a$cierL title /y O#tloo- Mo$ey E ;<<7 co$omic Times :orporate :iti?e$ of the Year A*ard 4 Novem/er ;<<=&

FUTURE: / HD9: has al*ays /ee$ mar-et4orie$ted a$d dy$amic *ith respect to reso#rce mo/ilisatio$ as *ell as its le$di$% pro%ramme& this re$ders it more tha$ capa/le to meet the $e* challe$%es that have emer%ed& Over the years. HD9: has developed a vast clie$t /ase of /orro*ers. depositors. shareholders a$d a%e$ts. a$d it hopes to capitali?e o$ this loyal a$d satisfied clie$t /ase for f#t#re %ro*th& I$ter$al systems have /ee$ developed to /e ro/#st a$d a%ile. to ta-e i$to acco#$t cha$%es i$ the volatile e3ter$al e$viro$me$t& HD9: has developed a $et*or- of i$stit#tio$s thro#%h part$erships *ith some of the /est i$stit#tio$s i$ the *orld. for providi$% speciali?ed fi$a$cial services& ach i$stit#tio$ is /ei$% fi$e4t#$ed for a specific mar-et. *hile offeri$% the e$tire HD9: c#stomer /ase the hi%hest sta$dards of )#ality i$ prod#ct desi%$. facilities a$d service&

C7A8TER/@

C7A8TER/ @
DIS3URSEMENT OF 7OME LOANS 3) 7DFC 7OUSING DE(ELO8MENT FINANCE COR8ORATION LIMITED This chapter co$tai$s res#lts a$d disc#ssio$ o$ dis/#rseme$t of Home loa$s /y HD9: !TD& It is divided i$to t*o parts o$e part is related to the dis/#rseme$t of home loa$s /y HD9: !TD a$d the seco$d part i$cl#ded the comparative st#dy of dis/#rseme$t of home loa$s made /y commercial /a$-s& Dis/#rseme$t of Home loa$s /y HD9: !TDI4 GRA87/@&9 7DFC: 7ousing %oan s"reads:/ ;&B7H ;&B<H ;&;7H ;&;<H ;&A7H ;&A<H ;&<7H
ARO= ;RO= BRO= =RO= ARO7 ;RO7 BRO7 =RO7 AROD ;ROD ARO@ ;RO@ ARO> ;RO> AR<C

HD9: s#rprises positively o$ =R $#m/ers *ith the /ottom li$e at ,s@BB=m$. AAH a/ove o#r a$d Street estimates. reporti$% ADH %ro*th at the preta3. pre4 e3traordi$ary level& He$ce the stoc- *as #p a si%$ifica$t AB&>HH today a$d has o#tperformed the Se$se3 /y ;;&DH si$ce its rece$t lo*s i$ March& =JDF: ,etail a$d *holesale dis/#rseme$t %ro*th *as healthier tha$ e3pected at A@H firm spreads at ;&;H& :ost4i$come ratio co$ti$#es to improve a$d so does asset )#ality&

De$and d*na$i-s: :o$s#mer a$d *holesale dema$d e3pected to %ro* A>4;<H i$ 9YA< *ith avera%e loa$ si?e at ,sA&7 millio$& +oost e3pected i$ ;HA< as real estate prices a$d i$terest rates /ottom o#t&

HTA3LE: / @&;I 7DFC: =JDF Su$$ar* Rs $n =JDFA )5) =;P 7;H ;?P A<DH ABH <<P 4CCH 4A@H /F=P ADH /?P /FP =H 4BH BH A@H A@H 9@P J5J ?P AH 9CP ;A7H 4B>H <;P 4;;H ;<H 99P BAH <9P ;BP 4BH 4DH =H B;H 7CH <P

In-o$e ro$ O"erations <DE@9B Total I$terest 3pe$ses ;<.D=A Net Interest In-o$e 9DED@< 9ees @=B Operati$% 3pe$sesV DAC O"erating 8ro it 9DE9FC :apital (ai$s A; Others D@ Tota% Other In-o$e @C Pre4Ta3 Profit 1pre4e3traordi$aries2 A<.;D@ 8re/ta! 8ROFIT 9DE;?@ Ta3 ;EF=< Net 8ro it D@H I$terest I$comeJI$terest 3pe$se :ost I$come 7&@H Fees5O"erating In-o$e @H Dis/#rseme$ts A;=.BC< Sa$ctio$s A7B.=D< Loans CB9EFC9

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

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

)O) DIS3URSEMENT GROWT7 /////// ANNUAL A(G DIS3& GROWT7 HD9: provides lo$%4term ho#si$% loa$s to lo* a$d middle4i$come i$divid#als. as *ell as to corporatio$s& HD9: also provides co$str#ctio$ fi$a$ce to real estate developers. /esides providi$% lease4fi$a$ci$% facilities to compa$ies a$d developme$t a#thorities for i$frastr#ct#re a$d other assets&

C7A8TER/C

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

C&9 / Dis+urse$ent o 7o$e %oans +* di erent +an1s:/ 7DFC LTD :/ Years No& of Home loa$ acco#$t holders& @<< C7< AAB< A=B7 A7C= Home loa$ Dis/#rsed 1i$ crore ,s&2 Distri/#ted C<&<@ A;<&<< A==&D@ A><&BB ;=<&<< ,ecovered DB&<7 CA&;< A;@&BA AD7&C< ;;>&A; +ala$ce ;@&<; ;>&> A@&BD A=&=B AA&>>

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

Inter"retation:/ O$ the a/ove ta/le. it is evide$t that there are i$crease i$ No& of acco#$t holders from @<< to A7C= i$ the year ;<<>4<C& The loa$ amo#$t distri/#ted amo$% home loa$ acco#$t holder has also i$creased from ,s&C<&<@ crore i$ ;<<=4<7 to ,s&;=< crore i$ ;<<>4 <C& The recovery proced#re for home loa$s is also stre$%the$i$% d#e to i$creme$t i$

recovered amo#$t. i&e& ,s&DB&<7 crore to ,s&;>>&A; crore& So it $#t shall there are #p*ard tre$d i$ $#m/er of acco#$tholders a$d dis/#rseme$t of home loa$s&

8un,a+ Nationa% 3an1 I4 Years No& of Home loa$ acco#$t holders& >A< C7< AA;< A=BB A7<< Home loa$ Dis/#rsed 1i$ crores ,s&2 ,ecovered C@&;> A7<&<< A>7&>D ;BA&<@ ;D7&<7

Distri/#ted A;<&A7 A>B&;D ;AB&D7 ;=<&>@ ;D7&A7

+ala$ce ;;&>@ BB&;D ;>&<7 C&>< C&A<

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

Inter"retation:/ The P#$ja/ Natio$al +a$- is P#/lic sector +a$-& It comes seco$d after State +a$of I$dia i$ its /ra$ch locatio$ a$d e3pa$sio$& 9rom the Ta/le. the fi%#res sho* that there are i$creasi$% tre$d i$ c#stomer /ase from >A< i$ the year ;<<=4<7 to A7<< i$ the year ;<<>4<C& The /a$- also sho* e$ha$ceme$t i$ loa$ amo#$t #p to ,s&;D7&A7 crore i$ the year ;<<>4<C& The recovery process of loa$s i$ past is slo* /#t $o* it is i$creasi$%&

Standard Chartered 3an1 :/ Years No& of Home loa$ acco#$t holders A<D AB< A7= A>< ;D< Home loa$ Dis/#rsed 1i$ crores ,s&2 ,ecovered 7&;@ A<&AD A=&B7 A>&D> ;B&CA

Distri/#ted D&;A AA&77 A@&<D ;<&<C ;=&A<

+ala$ce <&C= A&B> ;&@< A&=A <&=>

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

Inter"retation:/ The sta$dard chartered /a$- is a private sector /a$-& It has also #p%raded its positio$ i$ /a$-i$% sector i$ D H,ADUN& The fi%#res sho*$ i$ ta/le reveals that there is #p*ard shift i$ c#stomer /ase of +a$- from A<D c#stomers to ;D< c#stomers& The /a$has also i$creased its share i$ ho#si$% fi$a$ce /y distri/#ti$% ,s& ;=&A< crores i$ ;<<>4<C& The recovery proced#re of Home loa$ is very so#$d&

ICICI 3ANK:/ Years No& of Home loa$ acco#$t holders D7< >7B A<AC AAB; A=B= Home loa$ Dis/#rsed 1i$ crores ,s&2 ,ecovered C>&A; A<7&<< ABB&=D A==&D7 ;<C&AD

Distri/#ted A<=&BB A;B&;= A7<&D7 A@D&@7 ;;=&<<

+ala$ce D&;A A>&;= A@&AC B;&A< A=&>=

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

Inter"retation :/ The amo#$t reveal that there is treme$do#s i$crease i$ Home loa$ acco#$tholders& The amo#$t distri/#ted as home loa$ is also i$creased from ,s& A<=&BB i$ ;<<=4<7 to ,s& ;;= crore i$ ;<<>4<C& +#t the recovery mecha$ism of the +a$- is $ot so %ood that6s *hy the o#tsta$di$% amo#$t sho*s fl#ct#ati$% tre$d& C&; /COM8ARATI(E STUD) OF DIS3URSEMENT OF 7OME LOANS 3) COMMERCIAL 3ANKS:/ There are $#m/er of schemes a$d prod#cts. offered /y commercial /a$-s to attract the c#stomers& The compariso$ amo$% differe$t commercial /a$-s *hich offer home loa$s i$ re%ard of Dis/#rseme$t of home loa$s are asI4

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

)ears

7DFC LTD

8un,a+ Nationa% 3an1 >A< C7< AA;< A=BB A7<<

Standard -hartered 3an

ICICI 3an1

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

@<< C7< AAB< A=B7 A7C=

A<D AB< A7= A>< ;D<

D7< >7B A<AC AAB; A=B=

Avera%e of No& of acco#$ts holdersI 4 Total of home loa$ c#stomers U 44444444444444444444444444444444444444 No& of year Ta+%e C&; H+I Na$e o 3an1 A.erage HRsI 8er-entage o A--ountho%ders

HD9: !TD P#$ja/ Natio$al +a$Sta$dard :hartered +a$I:I:I +AN' Total

AA<C AADB ADD A<A>

B; B= 7 ;C

B=7D

A<<

GRA87:/ C&; Home loa$ holders of HD9: !TD a$d commercial /a$-s

35 30 25
percentage of home loan holdes

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

Inter"retation:/ The fi%#re reveals that HD9: !TD is havi$% lar%e $#m/er of home loa$ acco#$tholders& So it ra$-s first amo$% other /a$-s& +#t %over$me$t sector PN+ is $ot /ehi$d so m#ch *ith BAH also mar-et leader& The /a$-s have sho*$ i$crease i$ their

c#stomers /ase from ;<<= to ;<<>&/#t loa$ cases&

HD9: !TD comes as mar-et leader i$ the home

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

)ears

7DFC LTD

8un,a+ Nationa% 3an1 C<&<@ A;<&<< A==&D@ A><&BB ;=<&<<

Standard -hartered 3an1

ICICI 3ANK

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

A;<&A7 A>B&;D ;AB&D7 ;=<&>@ ;D7&A7

D&;A AA&77 A@&<D ;<&<C ;=&A<

A<=&BB A;B&;= A7<&D7 A@D&@7 ;;=&<<

1,s&i$ crore2 Avera%e of home loa$s %ra$ted Total home loa$s %ra$ted U 444444444444444444444444444444444 No& of years

Ta+%e& C&< H+I Na$e o 3an1 HD9: !TD P#$ja/ Natio$al +a$Sta$dard :hartered +a$I:I:I +AN' A.erage HRsI ;<=&D; A77&<A A7&>< A77&@C 8er-entage o ho$e %oans granted HRs in -roreI BC ;C B ;C

Tota%

B<9&;;

9DD

To #$dersta$d the compariso$ more effectively a$d closely. it has /ee$ sho*s Dia%rammatically as follo*sI4 GRA87:/ C&<

Home loa$s %ra$ted /y HD9: !TD a$d commercial /a$-s (0 35 30 percentage 25 of home 20 loan granted 15 10 5 0 HDFC L D !"# $C# %C%C% #&"'

Inter"retation:/ There is $o do#/t that every /a$- tries to ma3imi?e its home loa$ dis/#rseme$t& +#t o$ the /asis of data it is co$cl#ded that HD9: !TD sho*s hi%h avera%e of loa$ %ra$ts ,s& ;<&D; crore as compared to I:I:I. sta$dard charted /a$- a$d PN+ respectively& ,sA77&<A. ,s& A7&>< a$d ,s& A77&@C crores& O$ this a$alysis the HD9: !TD are hi%her loa$ provider as compared to other sector /a$-s&

Re-o.er* o 7o$e %oans:/ Ta+%e C&= HaI )ears 7DFC 3ANK HRs in -roreI C@&;> A7<&<< A>7&>D ;BA&<@ ;7D&<7 8un,a+ Nationa% 3an1H Rs in -roreI DB&<7 CA&;< A;@&BA AD7&C< ;;>&A; Standard -hartered 3an1 HRs in -roreI 7&;@ A<&AD A=&B7 A>&D> ;B&CA ICICI 3ANK HRs in -roreI

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

C>&A; A<7&<< ABB&=D A==&D7 ;<C&AD

Avera%e recovery of home loa$s

Total home loa$s recovered U 4444444444444444444444444444444444 No& of years

Ta+%e C&= H+I

Na$e o 3an1

A.erage HRsI

HD9: !TD P#$ja/ Natio$al +a$Sta$dard :hartered +a$I:I:I +AN'

A>=&<7 AB7&;A A=&=@ AB>&<>

8er-entage o ho$e %oans re-o.eredH Rs in -roreI BC B< B ;>

Total

=@A&><

A<<

It is more clear *ith the help of this dia%ramI4 GRA87:/ C&=

Home loa$s recovered /y HD9: !TD a$d commercial /a$-s

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

Inter"retation:/ I$ the previo#s years the recovery process of %ra$ti$% loa$s are very #$or%a$i?ed a$d i$efficie$t& So there are less recovery of home loa$s /y the commercial /a$-s& +#t it is evide$t from the ta/le that every /a$- *hether p#/lic or private sho*ed i$crease HD9: !TD has the %reatest recovery of home loa$s i&e& BCH. thereafter P#$ja/ $atio$al /a$recovered the B<H of sa$ctio$ amo#$t& The sta$dard chartered /a$- is havi$% lo*est recovery of their %ra$ted amo#$t as home loa$s& Outstanding 3a%an-e :/ Ta+%e C&B HaI

)ears

7DFC LTD HRs in -roreI

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

Standard -hartered 3an1HRs in -roreI

ICICI 3ANKHRs in -roreI

;<<=4<7 ;<<74<D ;<<D4<@ ;<<@4<> ;<<>4<C

;;&>@ BB&;D ;>&<7 C&>< C&A<

;@&<; ;>&> A@&BD A=&=B AA&>>

<&C= A&B> ;&@< A&=A <&=>

D&;A A>&;= A@&AC B;&A< A=&>=

Avera%e of /ala$ce d#e Total of +ala$ce d#e i$ 7 years U 44444444444444444444444444444444444444 No& of years

Ta+%e C&B H+I

Na$e o 3an1 HD9: !TD PN+ Sta$dard :hartered +a$I:I:I +AN' Tota%

A.erage HRsI ;<&DA AC&>C A&B> A@&@; BF&9B

8er-entage o +a%an-e due HRs in -roreI B= BB ; BA 9DD

Avera%e of o$e /a$-

Ha%e U 444444444444444444444444444 3A<< Total Avera%e of +a$-s The dia%rammatically prese$tatio$ of data is asI4 GRA87:/ C&B

+ala$ce d#e o$ home loa$s /y HD9: !TD a$d commercial /a$-s

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

Inter"retation:/ 9rom the a/ove ta/le a$d fi%#re it sho*s that sta$dard chartered /a$- has /ee$ less o#tsta$di$% /ala$ce amo$% other /a$-s& The HD9: !TD %ot hi%h /ala$ces d#e to lar%e c#stomer /ase. $ot proper recovery process a$d lac- of moder$isatio$ of activities& The p#/lic sector /a$- PN+ is havi$% more /ala$ce d#e i&e& BBH as compared to sta$dard chartered /a$- a$d icici /a$-&

C7A8TER/F

C7A8TER/F ANAL)SIS G INTER8RETATION

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

More than ?D *ears

C7ART/F&9:

Ana%*sis:/ 9rom the chart a/ove *e fi$d that =@H of the respo$de$ts fall i$ the a%e %ro#p of A> E ;7 years. ;7H fall i$ the a%e %ro#p of ;D E B7 years a$d A@H fall i$ the a%e %ro#p of BD E =C years& Therefore most of the respo$de$ts are relatively yo#$% 1/elo* ;D years of a%e2& a$d DH respo$de$t6s a%e are 7<4D< years a$d ;H respo$de$t6s a%e are D< to a/ove years& GENDER CLASSIFICATION OF SUR(E)ED RES8ONDENTS TA3LE/F&; Sr& No& A ; Categor* Married U$married Total No& o Res"ondents A=< D< ;<< 8er-entage @<H B<H A<<H +ase ;<< respo$de$ts

C7ART/F&;

Inter"retation 9rom the ta/le a$d %raph a/ove it ca$ /e see$ that @<H respo$de$t6s are married& B<H respo$de$t6s are #$married&

Edu-ationa% Aua%i i-ation o res"ondent2s TA3LE/F&< Sr& No& A ; B Categor* U$der %rad#ate (rad#ate Post %rad#ate Total No& o Res"ondents 7< >< @< ;<< 8er-entage ;7H =<H B7H A<<H +ase ;<< respo$de$ts

C7ART/F&<

Inter"retation 9rom the ta/le a$d %raph a/ove it ca$ /e see$ that ;7H respo$de$t6s are #$der %rad#ate& =<H respo$de$t6s are (rad#ate& B7H respo$de$ts are Post %rad#ate&

Nu$+er O *ear2s Are )ou in DehradunN TA3LE/F&= Sr& No& A ; Categor* !ess tha$ five years More tha$ five years Total No& o Res"ondents @> A;; ;<< 8er-entage BCH DAH A<<H +ase ;<< respo$de$ts

C7ART/F&=

Sta*ing *ears in Dehradun

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

Inter"retation 9rom the ta/le a$d %raph a/ove it ca$ /e see$ that BCH respo$de$t6s are i$ Dehrad#$ is less tha$ five year6s& DAH respo$de$t6s are i$ Dehrad#$ is more tha$ five year6s&

CUSTOMER 8ROFILE OF SUR(E)ED RES8ONDENTS

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

11,

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

22,

51,

self/empo)ed government service

Inter"retation 9rom the ta/le a$d %raph a/ove it ca$ /e see$ thatI4 7AH of the respo$de$ts are *or-i$% professio$als. ;;H are i$to /#si$ess a$d AAH are self4employed. AAH of the respo$de$t6s are %over$me$t service employee a$d BH of the respo$de$ts are st#de$t a$d ;H of the respo$de$ts are ho#se4*ife& ANNUAL 7OUSE 7OLD INCOMEN TA3LE/F&? Sr& No& A ; B = Categor* !ess tha$ ; lacs +et*ee$ ; to 7 lacs +et*ee$ 7to >lacs More tha$ > lacs Total No& o Res"ondents C> D; B< A< ;<< 8er-entage =CH BAH A7H 7H A<<H +ase ;<< respo$de$ts

C7ART/F&?

Inter"retation 9rom the ta/le a$d %raph a/ove it ca$ /e see$ that =CH respo$de$t6s a$$#al ho#sehold i$come is less tha$ ; lacs& BAH respo$de$t6s a$$#al ho#sehold i$come is /et*ee$ ; to 7 lacs& A7H respo$de$t6s a$$#al ho#sehold i$come is /et*ee$ 7 to > lacs& 7H respo$de$t6s a$$#al ho#sehold i$come is more tha$ > lacs&

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

No

AD

C7ART:/F&@

A0areness a+out 7DFC LTD

+,
01$ "2

+1,

Inter"retation:/ 9rom the ta/le a$d %raph a/ove it ca$ /e see$ that CAH respo$de$t6s are -$o*$ a/o#t HD9: !TD CH respo$de$t6s are $ot -$o*$ a/o#t HD9: !TD

Ta+%e F &C:/
Reasons or getting the ho$e inan-ed Sr&No& a& /& Nu$+er o Reasons No$4availa/ility of f#$ds ,el#cta$cy to pay cash i$ o$e %o 8er-entage BD B7

c& d&

Ta3 /e$efit A$y other

;= 7

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

percentage of customers

non/ reluctanc) availa*ilit) of funds

ta3 *enefit

an) other

Inter"retation I4 To i$terpret the respo$se of the )#estio$s. the fi%#res sho*s that most of the c#stomers fi$d the pro/lem i$ availa/ility of f#$ds i&e& BDH a$d very less $#m/er of c#stomers fo#$d pro/lem i$ payi$% cash i$ o$e %o is B7H. c#stomers %et ho#si$% loa$ for ta3 /e$efits is ;=H& This *as the e3pected respo$se /eca#se a lar%e $#m/er of people fi$d a pro/lem of availa/ility of f#$ds *hich *or-s as a$ o/stacle i$ o*$i$% a dream home& I$ todayLs life. people hardly ear$ /oth mea$s a$d e$ds of life a$d they do$Lt have m#ch of mo$ey to /#y a home or a la$d to co$str#ct ho#se /eca#se of cost of property& So. they ta-e the adva$ta%e of home loa$s provided /y differe$t /a$-s at differe$t terms feasi/le to the c#stomers& There are very less $#m/er of people. *ho do$Lt o*$ home eve$ *he$ they have s#fficie$t f#$ds a$d they ta-e the adva$ta%e of home loa$s /eca#se they do$Lt *a$t to pay h#%e cash i$ o$e %o& O$ the /asis of st#dy. it is co$cl#ded that most of people lac- of mo$ey i$ f#lfili$% their dreams a$d fe* of them *ere rel#cta$t to pay cash i$ o$e %o a$d *a$ted to pay their home loa$s slo*ly i$ i$stallme$ts&

Ta+%e/F&F
Fro$ 0here *ou ha.e got *our ho$e inan-ed Na$e o 3an1s 5 -o$"an* HD9: !TD P#$ja/ Natio$al +a$Sta$dard :hartered +a$I:I:I +AN' A$y other 8er-entage o -usto$ers 77 A7 <@ ;< <B

To #$dersta$d the respo$se more effective a$d closely. it has /ee$ sho*ed dia%rammatically as follo*s I4

(,APHI4 C&C

9rom *here yo# have %ot yo#r home fi$a$ced

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

Inter"retation:/ The a$alysis sho*ed that a lar%e $#m/er of c#stomers prefer HD9: !TD as compared to others& The data sho*s that @H of c#stomers too- loa$ from Sta$dard :hartered +a$-. ;<H of c#stomers from I:I:I +AN'. A7H :#stomers too- loa$ from P#$ja/ Natio$al +a$-. 77H of c#stomers too- loa$ from HD9: !TD a$d a BH of c#stomers fall #$der the cate%ory of LA$y otherL *hich i$cl#ded State +a$- of I$dia. :a$ara +a$-. P#$ja/ a$d Si$d +a$-. etc& The data sho*s that most of people prefer HD9: !TD compared to p#/lic sector /a$-s a$d other private /a$-s& This is /eca#se of the e3tra services provided /y HD9: !TD& Ho*ever. there is less differe$ce i$ fi%#res of I:I:I +a$- a$d P#$ja/ Natio$al +a$-& +#t there is co$sidera/le differe$ce i$ fi%#res of the t*o private sector /a$-s i&e& I:I:I /a$- a$d Sta$dard :hartered +a$-& As I:I:I is the mar-et leader i$ the home loa$s sector& This may /e the reaso$ for s#ch differe$ce i$ Sta$dard :hartered +a$-Ls perce$ta%e a$d I:I:I +a$-Ls perce$ta%e& A$other reaso$ for speciali?ed services i$ home loa$s. more amo#$ts of loa$s. a$d efficie$t )#ery ha$dli$%& Ho*ever. the a$alysis sho*ed that the people prefer HD9: !TD for home loa$ /eca#se of their services a$d e3cessive feat compared to other /a$-s&

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

Sour-es o in or$ation Ne*spapers Ma%a?i$es

8er-entage o -usto$ers =C AD

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

AA ;< <=

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

20, 11,

(, (+, 1-,

newspaper maga4ines *anners word of mouth an) other source

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

Inter"retationI4 The data sho*s that aro#$d ;<H of c#stomers %ot i$formatio$ from so#rce of LFord of Mo#thL *hich i$cl#des i$formatio$ from frie$ds. relatives. collea%#es etc& =CH of c#stomers %ot i$formatio$ from $e*spapers. o$ly ADH of c#stomers from ma%a?i$es a$d =H of c#stomers %ot i$formatio$ a/o#t home loa$s schemes #$der LA$y other so#rceL a$d AAH thro#%h +a$$ersJ Hoardi$%sJPamphlets &

Ta+%e/F&99
O"inion a+out the ser.i-es o 7DFC LTD Ser.i-es o 7DFC LTD Strong%* agree a& Professio$ally ma$a%ed /& ,elia/le 5 tra$spare$t c& Socially respo$si/le >DH 8er-entage o -usto$ers agreeing Agree Neutra% Disagree Strong%* disagree 4

A<H

=H

D@H

BBH

@7H

A<H

A7H

=H

d& :#stomer care

;<H

D>H

>H

e& R#ery ha$dli$%

;<H

@DH

=H

GRA87/F&99

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

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

c
factor

Inter"retation:/ :#stomers from HD9: !TD are )#ite satisfied from their services li-e )#ery ha$dli$% a$d c#stomers social respo$si/ility of /a$-s to*ards c#stomers a$d professio$ally ma$a%ed services& They do$Lt %ive so %ood respo$se to relia/ility a$d tra$spare$cy services of /a$-s& So. c#stomerLs satisfactio$ level to*ard HD9: !TD services is li%htly satisfied&

Ta+%e/F&9;

O"inion o -usto$ers a+out ho$e %oan s-he$es 7DFC LTD :/ Ser.i-es o 7DFC LTD 8er-entage o -usto$ers agreeing Strong%* agree D<H =;H B;H Agree B7H =7H 7DH Neutra% 7H A=H A;H Disagree Strong%* disagree 4 4 4 4 4 4

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

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

;DH ;<H 77H =7H 77H

D=H B;H =<H B<H ;=H

A<H =>H 7H A>H A>H

4 4 4 DH BH

4 4 4 AH 4

GRA87:/ F&9;

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

50 -0 50
percentage of customers

(0 30 20 10 0

strongl) agree agree neutral disgree strongl) disagree

g h

factors

Inter"retation:/ The a$alysis sho*s that the c#stomers of HD9: !TD %ave D< perce$t of amo#$t of loa$ a$d le%al proceedi$%s. 7DH to i$terest rates. =7H to proceedi$%s a$d services. 77H to i$stallme$ts& So. c#stomer of HD9: !TD did$Lt %ive respo$se re%ardi$% the services of the /a$- J compa$y e3cept to the amo#$t of loa$ a$d le%al formalities&

TA+! I4 C&AB

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

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

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

HPI @C ; 9D @ < 9DD

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

percentage of customers

INTER8RETATION:/ 9rom the ta/le a$d %raph a/ove it ca$ /e see$ thatI4 @>H of the people co$tacted prefer HD9: !TD to a$y other a$d therefore it is ra$-ed $o&A /y that perce$t of respo$de$ts& 8RO3LEMS FACED 3) CUSTOMERS IN A(AILING 7OME LOANS

There are everythi$% i$ the *orld has %ood or /ad poi$ts& No do#/t /a$-i$% i$d#stryJ compa$y has made ma$y efforts to e$ha$ce the c#stomer satisfactio$ /#t c#stomer still faced some pro/lems& These are hi%h li%hte$ed as /elo*I A2 The c#stomer does $ot have proper -$o*led%e a/o#t differe$t home loa$ prod#cts so they face pro/lem i$ ma-i$% a %ood deal& ;2 There are proced#ral delays. *hich harass the c#stomers lot& This *ill cr#sh the c#rtsy of c#stomers to avail the home loa$& B2 The attit#de of /a$- employees some times $o$ cooperative a$d it creates a h#rdle i$ /#ildi$% tr#st a$d :o$fide$ce amo$% c#stomers a/o#t /a$-s& =2 The /a$-s do $ot ta-e i$to acco#$t the payi$% capacity of c#stomers& So some c#stomers are $ot a/le to %et amo#$t of loa$ $eeded /y them& So a/ove disc#ssed are the pro/lems *hich faced /y c#stomers *hile availi$% home loa$s&

C7A8TER/9D

C7A8TER/9D FINDINGS
A& HD9: !TD havi$% %ood /ra$d ima%e i$ the mi$ds of c#stomers&

;& Majority of the people %ot loa$s from HD9: !TD o$ly B& Most of the c#stomers are $ot a*are of the prod#cts of HD9: home loa$s =& Some of the c#stomer6s felt that the i$terest rates are some *hat hi%h 7& Some of the c#stomer $ot havi$% %ood faith o$ private /a$-s li-e Sta$dard chartered /a$-. HS+: /a$- etc& D& Most of the people are directly %o to HD9: to apply a home loa$ @& Some of the c#stomer of HD9: already /e$efited thro#%h HD9: home loa$ prod#cts a$d services >& :#stomer a*are$ess is medi#m a/o#t HD9: prod#cts& C& HD9: !TD providi$% %ood services to their c#stomers&

C7A8TER/99

C7A8TER/99 RECOMMENDATIONS AND SUGGESTIONS

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

A2 To i$crease their c#stomers. the HD9: !TD sho#ld provide speciali?ed services i$ this sector& These services ca$ /e s#ch as proper %#ida$ce to the c#stomer re%ardi$% the processi$% of loa$s. especially for the c#stomers *ho are illiterate& ;2 To satisfy their c#stomers a$d for %ood deali$%s i$ f#t#re. the HD9: !TD sho#ld ma-e prompt dis/#rseme$t of loa$ amo#$t to the c#stomers so that they ca$ /#y or co$str#ct their dream home as early as possi/le& B2 The HD9: !TD sho#ld #se easy proced#re. or say. less le$%thy proced#re for the sa$ctio$i$% of loa$ to the c#stomer& There sho#ld /e less $#m/er of le%al formalities. i$ case this e3ists. the$. these sho#ld /e completed i$ less time& This *ill /e helpf#l i$ attracti$% more c#stomers& =2 Altho#%h the i$terest rates o$ specific $orms. yet c#stomers see- less i$terest rate *hich ca$ lo*er their cost of ho#se& So /a$-s sho#ld try to lo*er their i$terest rates& Needles to say. that the /a$- *hich is havi$% lo*er i$terest rates. have the ma3im#m clie$ts for loa$s& 72 HD9: !TD provide loa$ accordi$% to the repayi$% capacity of the c#stomer a$d hisJher eli%i/ility& D#e to *hich. some c#stomers are $ot a/le to %et amo#$t of loa$ $eeded /y them& So. the HD9: !TD sho#ld softe$ their $orms re%ardi$% the loa$ amo#$t& D2 :reate a*are$essI The :ompa$y has to ta-e care of a*are$ess creatio$ a/o#t the prod#cts a$d services amo$% the c#stomers& @2 :har%esI The :ompa$y has to red#ce the mortality a$d admi$istratio$ char%es& >2 The compa$y has to red#ce their i$terest rates o$ home loa$ prod#cts a$d services& C2 The compa$y has to ide$tify the pote$tial c#stomers& A<2 :ompa$y sho#ld co$sider the prese$t competitio$ a$d sho#ld act accordi$% to the c#stomer $eeds& AA2 The HD9: !TD sho#ld try to provide proper -$o*led%e re%ardi$% their home loa$ schemes. eve$ to people *ho do$Lt -$o* a/o#t s#ch schemes a$d their /e$efits especially i$ r#ral areas& So they sho#ld provide -$o*led%e to the i%$ora$t c#stomers. especially i$ r#ral areas a$d /ac-*ard #r/a$ area So. a/ove are the mai$ s#%%estio$s provided to the HD9: !TD& +y co$sideri$% these s#%%estio$s. the HD9: !TD ca$ stre$%the$ their c#stomer /ase i$ home loa$s sector& They sho#ld improve their services a$d red#ce le%al proceedi$%s a$d sho#ld /e frie$dly to their c#stomers& All this *ill /e helpf#l to satisfy their c#stomers&

C7A8TER/9;

C7A8TER/9; CONCLUSION

A2 I$ my st#dy *e came to -$o* that ma$y peoples are i$terested to ta-e a home loa$ from HD9: !TD to co$str#ct their homes& ;2 Home loa$s have lo$% period *he$ compare to other perso$al loa$s a$d other loa$s& So peoples are co$f#sed to ta-e a home loa$& B2 ve$ tho#%h the i$terest rates are hi%h peoples are *illi$% to ta-e a loa$ from HD9: !TD d#e to some reaso$s& =2 The i$terest rates also some *hat hi%h *he$ compare to other /a$-s 72 The loa$ sa$ctio$ process is lo* *he$ compare to other /a$-s& D2 9or dis/#rseme$t process is also it *ill ta-e lo* time *he$ compare to other /a$-s 9i$ally the *hole research *as carried o#t i$ a systematic *ay to reach at e3act res#lts& The *hole research a$d fi$di$%s *ere /ased o$ the o/jectives& Ho*ever. the st#dy had some limitatio$s also s#ch as lac- of time. lac- of data. $o$4respo$se. rel#cta$t attit#de a$d illiteracy of respo$de$ts. *hich posed pro/lems i$ carryi$% o#t the research& +#t proper atte$tio$ *as made to :arry o#t research i$ proper *ay a$d to ma-e acc#rate co$cl#sio$ for the HD9: !TD *hich may /e$eficial for /a$-s to e$ha$ce their c#stomer /ase&

3I3LIOGRA87) REFERENCES
RE(IEWS

 +erstai$ David1;<<>2. Home e)#ity loa$s a$d private mort%a%e i$s#ra$ceI ,ece$t Tre$ds 5 Pote$tial Implicatio$s". Kol&B No&;. A#%#st ;<<>. Pp& =A 4 7B Dr& ,a$%araja$ :& 1;<<A2. A Simple rror :orrectio$ Model of Ho#se Price"&0o#r$al of Ho#si$% co$omics Kol& =. No& B.pp ;@ E B= 9a$$i$% 1AC>;2. The Dema$d for Home Mort%a%e De/t" 0o#r$al of Ur/a$ co$omics. Kol AA No ;. Novem/er. pp& @@<4@@= (odse 1AC>B2. loo-i$% a fresh at /a$-i$% prod#ctivity". 0o#r$al of ,eal state !iterat#re. Kol& No& AB. Pa%e A=A to AD=& Haavio. 'a#ppi1;<<<2 . ,eside$tial !e$di$% to !o*4I$come a$d Mi$ority 9amiliesI vide$ce from the ACC; HMDA Data.P 9ederal ,eserve +#lleti$.Kol $o ><1;2. Decem/er ;<<< Pp4@C4A<> '#l-ar$i 1AC@C2. Developme$t respo$si/ility a$d profita/ility of /a$-s" 0o#r$al of co$omic Perspectives. Kol C No A .pp& ;D4B;& !a co#rr. Micheal1;<<@2 . co$omic 9actors Affecti$% Home Mort%a%e Disclos#re Act ,eporti$%" The America$ ,eal state a$d Ur/a$ co$omics Associatio$. Kol&; No& ; May A>. ;<<@. Pp& =7 47> !a co#r Micheal1;<<D2 . The Home P#rchase Mort%a%e Prefere$ces Of !o*a$d4 Moderate I$come Ho#seholds". 9orthcomi$% i$ ,eal state co$omics . Kol A>. No = . Decem/er ;<. ;<<D. p& 7>7& Ka$dell .-erry D1;<<>2. S#/prime le$di$% a$d ho#si$% /#//leItail *a% do%O"I$ter$atio$al 0o#r$al of +a$- Mar-eti$%. vol ;A.$o ;. pp& 7B4@ +roch#re o$ home loa$s from HD9: !TD NEWS 8A8ERS The Times of I$dia 9i$a$cial 3press WE3 8AGES:/ httpIJJ***&hdfci$dia&comJ httpIJJ***&hdfci$dia&comJothersJpop#pJ$e*sJhdfcYfi$Yres#ltYj#$eYB<Y<>&html ***&hdfc&com httpIJJ***&ilovei$dia&comJreal4estateJho#si$%4fi$a$ce4 compa$iesJhdfc&html httpIJJ***&loa$s$e*s&i$foJHome4loa$Jhdfc4home4loa$sJ httpIJJ***&hdfci$dia&comJloa$sJhm4loa$4doc#me$ts&asp httpIJJ***&thi$-pla$i$vest&comJ;<<CJ<AJhdfc4*ill4c#t4home4loa$4ratesJ

httpIJJ***&s#$corp&com&a#Js#$corpJperso$alJhomeYloa$sJtipsJfa)&asp3 httpIJJi$vesti$%&/#si$ess*ee-&comJresearchJstoc-sJpeopleJpeople&aspOricUHD9:&+O httpIJJ***&eco$omy*atch&comJcompa$iesJfor/es4listJi$diaJho#si$%4developme$t4 fi$a$ce4corporatio$&html httpIJJ***&hdfci$dia&comJloa$sJhome4loa$&asp httpIJJdocs&%oo%le&comJ%vie*O aUv5)UcacheI*o0TMDKAH!Y0I***&hdfc&comJpdfJB;A(M H;7;<speech&pdfShdfcSho#si$%Sfi$a$ceSdevelopme$tSprod#ct5hlUe$5%lUi$ httpIJJ***&m#$ichre&comJe$JpressJpressYreleasesJ;<<@J;<<@YA<YB<YprofileYhdfc&asp 3 httpIJJ***&hdfc&com&mvJfa)&htm httpIJJayaa$/ayaa$&comJhdfc4ltd4fi$a$cial4res#lts4i$dia$4%aap4for4the4period4april4to4 j#$e4;<<CJ httpIJJ***&val#e$otes&comJpressJprYHD9:Y;7<ct<7&aspO Art:dU@<<AB5:atU:5IdUA<<

JUESTIONNAIRE

Dear SirJ madam I am Ra,ni doi$% M+A from (&(&S&I&P U$iversity& I m prepari$% a project o$ A STUD) ON 7OME LOANS& 9or this I have desi%$ed a R#estio$$iare to -$o* yo#r vie*s a$d satisfactio$ level of home loa$s &please fill the %ive$ as per yo#r thi$-i$% a$d e3perie$ces *ith this& I *ill /e tha$-f#l to yo# for this& Na$e: ZZZZZZZZZZZZZZZZZZZZZZZZZZZ&& Address: ZZZZZZZZZZZZZZZZZZZZZZZZZZ&& Conta-t No :QZZZZZZ1 O2ZZZZZZ 1M2ZZZZZZZZZ Cit*: ZZZ&&&&&&&&&&&&&&&8in: ZZZZZZZ&State: ZZZZZZZZZ&

A& NameI YYYYYYYYYYYYYYYYYYYY ;& A%eI 1a2 +elo* B< B& Occ#patio$I 1a2 Professio$al 1e2 Others

1/2 B<4=<

1c2 =<47<

1d2 A/ove 7< 1c2 Salaried

1/2 Self4employed

=& Fhich i$come %ro#p do yo# /elo$%O 1Per a$$#m2 1a2 +elo* ; la-hs 1/2 ;4= la-hs 1c2 =4D la-hs 1d2 D la-hs a$d a/ove 7& Have yo# ever ta-e$ Home loa$ /eforeO 1a2 Yes 1/2 No D& If yes. from *hich +a$-Jcompa$yO 1a2 I:I:I 1/2 HD9: 1d2 :e$t#rio$ /a$- of P#$ja/

1c2 UTI 1e2 others

@& Are yo# Satisfied *ith the services providedO 1o$ 7 poi$t scale2 YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

Hi%hly dissatisfied

dissatisfied

Ne#tral

satisfied

hi%hly dissatisfied

>& Fhile ta-i$% loa$. *hich thi$%s attract yo# the mostO 1a2 I$terest rates 1/2 Service Provided 1c2 Pay /ac- period 1d2 Schemes 1d2 Others C& ve$ if the I$terest rate is hi%h for the perso$al loa$s. yo# *ill %o for itO 1a2 Yes 1/2 No A<& Ho* m#ch loa$ amo#$t yo# too-O 1a2 !ess tha$ A la-hs 1c2 74A< la-hs

1/2 A47 la-hs 1d2 more tha$ A< la-hs

AA& ve$ if the I$terest rate is hi%h for the Home loa$s. yo# *ill %o for itO 1a2 Yes 1/2 No A;& Do yo# o*$ a homeZO Yes [ \ No [ \ If Yes. the$. ProceedZZZ AB& Have yo# %et it fi$a$cedO Yes [ \ No [ \ If Yes. the$. proceedZZ&& A=& Fhat is reaso$ for %etti$% it fi$a$cedO A& No$ availa/ility of f#$ds [ \ ;& ,el#cta$ce to pay cash i$ o$ %o [ \ B& Ta3 /e$efit [ \ =& A$y other 1please specify2 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& A7& 9rom *hich of the follo*i$% /a$-sJ compa$y yo# have %ot if fi$a$cedO Sta$dard :hartered +a$- [ \ State +a$- of I$dia [ \ I:I:I +a$- [ \ 7DFC LTD R S A$y other 1please specify2 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& AD& 9rom *here have yo# %ot i$formatio$ a/o#t home loa$s schemeO

1:hec- list2ZZZZZZZ&& Ne*spapers [ \ Ma%a?i$es [ \ Hoardi$%J/a$$ers [ \ Ford of mo#th [ \ A$y other 1please specify2&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& A@& Fhat pro/lems did yo# face *hile %etti$% home loa$sO a& !ac- of -$o*led%e /& Proced#ral delays a$d $o$ cooperatio$ c& A$y other 1please specify2 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& A>& Did yo# face a$y pro/lem after sa$ctio$ of loa$O YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY AC& Fhat s#%%estio$s do yo# *a$t to %ive for improveme$ts i$ home loa$s SchemeO YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

T7ANKS