1.

Introduction:
Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a home on loan. Home loans means that you buy a house on installments. In simpler terms when you want to own a home and cannot afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate. There are number of companies offer cheap loans at a low interest rate You can avail loan against existing house for renovation or expansion etc. The demand for home loans will not sag much. The reason is a substantial rise in the incomegenerating capability of Indian youth. So this particular section will keep the housing loan demand high and increased lending rates can only shelve their plans for some time. .

1.1 Background: The research report also discusses the outlook of Indian housing sector,
role of housing finance companies, growth of housing finance market, housing finance disbursements and housing loan disbursements by private sector banks. Every one of us has a dream to own a house I life time. Although home loans are given by almost all the Banks of India, purchasing the home of our dreams is not an easy task. As the salaried population living in India is in larger percentage, like any other country, when one decide to own a house, one cannot afford to pay the entire amount in lump sum. So, the banks in India are offering housing finance with easy installment schemes with relevant interest rates to the buyers, which reduces their burden and allow them to decide to own a house without any hesitant mind. Providing Home Loans in India came to its full boon in the recent years and now it is spread on a huge scale as many banks are coming to offer the Home loans in different special schemes to attract more number of buyers. There are numerous nationalized as well as private banks that offer Real estate Mortgage Home Loans in a hassle free manner in India these days. The process of availing a home is made very easy that almost any middle class; especially salaried class population of India dreams to achieve their own house in their life time. Though lots of attractive and cheap home loans are available in India, one must be very cautious to choose the right one. There are numerous factors one must take into consideration while applying for the right Home loan. For example, one must first see for the first and foremost 1

factor that which top finance companies or Banks offer cheap home loans or loan at a low interest rate. This is too important, since there are number of Banks and finance companies flooded in the market to disturb the good ideas of the buyers, by their attractive marketing or complementary offers. Choosing the right offers means it should satisfy the buyers repayment capacity significantly and the loan should not lead the buyer to trouble or any other dilemma in future. In India there are many prominent nationalized banks and private banks that offer easy home loans to the prospective buyers. These banks offer Home loans to the prospective buyers to purchase either fresh or old house. Further loans are also provided for home upgrading or repair, extension of houses etc.The facilities provided by these banks include Low interest rates, Doorstep service, Can transfer your existing high-interest rate loan, Free personal accident insurance, Up to 100% funding for selected properties.

1.2 Industry overview: In India there are many prominent nationalized banks and private
banks that offer easy home loans to the prospective buyers. These banks offer Home loans to the prospective buyers to purchase either fresh or old house. Further loans are also provided for home upgrading or repair, extension of houses etc.The facilities provided by these banks include Low interest rates, Door-step service, Can transfer your existing high-interest rate loan, Free personal accident insurance, Up to 100% funding for selected properties. UNIQUE FEATURES OF HOUSE LOAN Purpose: For purchase of house from builder/resale and construction/ extension of existing house. Loan Amount: You can avail for Home loans ranging from Rs.1 lakh to Rs.1oo lakh depending on your eligibility, income, and repayment capacity. Security: Home loan is a secured loan wherein collateral are required. Loan Tenor: The maximum loan tenure is 25 years.

So if you are planning to avail a home loan, here are some tips:

Firstly, take your own time and evaluate your expenses and do a market survey about the property buying process. Buying a house, which is way beyond your range, could affect you financially; banks help in financing your dream home via home loans. ELIGIBILITY: Banks determine your eligibility based on your repayment capacity and discuss about the loan amount upfront. The eligibility for acquiring a home loan is augmented by clubbing income of your father/spouse/mother/son, by clearing your outstanding debts, by stretching your loan tenure, Salaried individuals can increase their eligibility by showing their performance linked income or bonus earned. Secondly, Do your own analysis and check the impact of your repayment of home loan on your monthly expenditure, as a thumb rule, it is recommended to make sure the EMI of your home loan do not exceed more than 40% of your gross monthly income. INTEREST RATES BEST SUITED: An important factor that goes into your EMI calculations in the interest rates, which may vary from bank to bank, so do compare them. Also do a complete and detailed analysis of the various options like the interest rates i.e. fixed and floating rate of interest. Thirdly, if two banks give you the same amount of loan but at different interest rates do your math and work out whats best for you. Fixed interest loans charge an interest, which remains the same through out the tenure of the loan. This means that the consumer is immune to market risk or the possible upward movement in the interest rates. Hence, fixed rate is a good option when the interest rates are expected to move in the future. As for Floating rate loan, a consumer is exposed to market risk and his gain or loss depends on the interest rate condition prevailing in the market. Floating rate is beneficial if the interest rate falls in the future. A floating rate is considered non-transparent and is also known as adjustable rate

Fourthly, if you decide to opt for a fixed rate loan, you can still switch to a floating rate loan in the future and vice versa as and when rates go in your favors and if you decide to switch, you should take into account the cost of doing so and the interest rate benefits of switching. For a given interest rate, loan with daily or monthly reducing balance is better than an annual reducing balance loan. Interest rates vary depending on the tenure of the loan, the amount of the loan and your personal profile. Insurance cover (an added cost) Also, many banks may insist on getting your home insured to safeguard their interest. There are various kinds of insurance covers available for you. Apart from getting the mandatory ones you should try to get insurance as per your circumstances. You also have a choice of getting insured from another company without any objection from your bank. Other costs: The interest rate and EMIs are not the only cost factor. A 1% administration fee and a 1% processing fee on a Rs.10 lakh loan, would amount to Rs.20,000. Processing fees, administration fees, valuation fee, legal fee, is to be paid when you apply for a loan and other fees paid at closing. Many of these fees are negotiable. You should ask for zero processing fees and zero penalty for pre-payment option. If this were not available, then the lowest cost would be better. Make sure you work out as to how much these costs add up to. So even though the interest rate may be lower, it usually adds up to being expensive. If the EMIs come out a lot more than what you can afford on a monthly basis; try to redo the math with changes in the tenure and loan amount (if possible). DOCUMENT REQUIRED: Most importantly, all deals and offers agreed upon are supported by relevant papers. Self employed and salaried require different documents to support the deal. So make sure you always ask for a letter on the banks letterhead mentioning the likes of, exact rate of interest, processing fees, pre-payment charges along with interest-schedule. Before signing the documents, make sure you recheck all terms and conditions. Do make sure you understand and agree with each of the clauses in the documents. Do not sign any blank documents. Even if it takes you a few hours to fill-up the form, please do so. Do not leave anything for the executive to fill-up. Its always better to get a legal opinion from someone on

your loan papers. Do not under any circumstance give any false information. This may amount to fraud a d could land you in trouble. Penalties: Once you have received the loan do your best to pay it back as quickly as possible. But this early payment might invite a pre-payment clause. Banks make their money off the interest they charge and the sooner you pay back a loan the less money you will have to pay in interest. When it comes to Home loans, penalties are binding, like if you choose to pay up your entire money before the tenure, a pre-payment penalty is charged. So you should know about such penalties beforehand to avoid future misunderstanding between you and the bank. HOME LOAN TYPES Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India. And the most important thing is you should know about each and every term related with Home Loans before applying for a loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property. You can take different types of home loans like Bridge loans, Home construction loans, Home equity loans, Home extension loans, Home improvement loans, Land purchase loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs. Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new house.

 Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased.

Home Construction Loans: These loans are available for the construction of a new house. Home Extension Loans: These loans are given for expanding or extending an existing home. For e.g. addition of an extra room etc. Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan. Land purchase loans: These loans are available for purchasing land for both construction and investment purposes. Bridge Loans: These loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home. Steps of Home Loans Buying a house is no longer a distant dream for hordes of people with modest means. For now they can apply for home loans to finance a new home. The different banks of India offers people the most convenient and practical home loan plans to suit individual needs. There are so many attractive features in different type of home loan in India offered by these banks that creating the home you always wanted would no longer remain a distant dream. But you have to know the right steps of home loan. While applying for a home loan you have to know how to go about it and the different eligibility criteria of home loans. 6

The one of the initial steps of home loan is to calculate the amount of money which you would require to build your dream home or buy an ideal apartment. Then you have to choose the right bank from where you plan to apply for the loan. Some people prefer to take a loan from nationalized banks like Allahabad Bank, Central Bank of India, State Bank of India while others give priority to private banks like ICICI and Housing Development Finance Corporation (HDFC) etc. There are customized home loan plans for different people and the interest rates are also varies on whether you chose floating or fixed interest rate. Determining whether you want to opt for a floating rate or a fixed rate is another important step of home loan. One of the key steps of home loan is to decide whether you want short term loans or you want loans for a longer tenure like a maximum period of twenty five years. Other major steps of home loan are fulfilling different eligibility criterion for applying for a home loan. You have to show proper documentation to show your source of income and hence the repayment of the loan. This applies for both service holders and self employed people. The repayment capacity of the applicant or applicant are determined by the bank on the basis of on factors such as income, age, qualifications, number of Dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. The reason for all these calculations is that the banks want to make sure you can comfortably repay the loan amount. INFORMATION RESOURCE FOR HOUSING LOANS IN INDIA For many millions of Indians, the single greatest achievement in life was to own a home, and thanks to a range of banking services now available, home loans are a simple affair now. In fact, home loans are now sold as a product and the applicant is treated like a customer. Gone are the days when ordinary folk depended on a lifetime of savings and resorted to the local moneylender to build or buy a house. Home loans make it possible to move into your own home, almost as soon as you can afford the down-payment and keep paying for it while you also live in it. But the home loan is actually a mortgage and you could lose the home in case you are not able to pay it. Most banks have standard guidelines for applying for a home loan and a set of rules, which may vary, from one finance institution from the other.

The term of the loan may range from one year to thirty years, with varying interest rates. The longer the term, the higher the interest charged, usually. However, having decided on a longer term, a pre-payment of the loan also leads to pre-payment penalty- which usually ranges from one to two percent. For instance, most home loan applicants have to be between twenty-one and fifty-eight years of age, or at least the guarantor has to be. There may be age limit extensions of government employees or self-employed people who will not be forced to retire at sixty. Applicants for home loans must prove to be credit-worthy before a loan is sanctioned by the bank or the finance institution concerned. For one, they will demand to see proof of income or some proof that the applicant now referred as a customer-has the resources to repay the loan. The EMI or the monthly installments will be a certain percentage of your income. Taking a home loan also has tax advantages, which makes it a doubly good investment, as compared to other conventional forms of savings. Most banks have standard guidelines for applying for a home loan and a set of rules, which may vary, from one finance institution to the other. Home Loan Interest Rate If you are keen on acquiring a new house then taking a home loan might be a great option for you. No matter what your requirement the different home loan interest rates and offers made by different banks will surely have an appropriate plan for you. Most of these home loan plans are for salaried or self-employed Resident Indians. You can Get the best deals ever and finance the perfect home from the different nationalized and private banks of India. With the varied offering of house loans and home finance gives you an opportunity to select the perfect home loan as per your needs of a dream home.

The are customized home loan plans for different people and the home loan interest rates are also varies on whether you chose floating or fixed interest rate. The different banks of India offer a plethora of home loans for resident Indians. You can choose from an array of home loan rates like Adjustable Home Loan Interest Rate Home Loan or Fixed Home Loan Interest Rate. But if you want the best of the both world you can even opt for the Part Fixed and Part Floating Home Loans Interest Rate etc. With the help of home loans you can not only experience the joys of possessing your own house e but there are quite a few tax benefits due to home loans too. There are various on line portals where you can compare home loan interest rates of leading banks of India. You can compare and contrast the various floating home loan rate and fixed home loan rates given by the different banks. Low home loan interest rates would in turn make your Equated Monthly Installments (EMIs) which comprises of principal and interest.

HDFC BANK-WE UNDERSTAND YOUR WORLD INTRODUCTION The HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC) was amongst the first to receive an in principal approval from The Reserve bank Of India (RBI)to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking

Industry in 1994.The bank was incorporated in August 1994 in the name of HDFC BANK LIMITED, with its registered office in Mumbai,India.HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in International markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units.HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise.HDFC was ideally positioned to promote a bank in the Indian environment. HDFC bank began operations in 1995 with a simple mission: to be a WORLD CLASS INDIAN BANK. We realized that only a single minded focus on product quality and service excellence would help us get there.Today,we are proud to say that we are well on our way towards that goal. COMPANY PROFILE Table-1 Cities Branches ATMs March 2007 316 684 1605 March 2008 327 761 1977 March 2009 528 1412 3295

As of march 31st 2009, the banks distribution network was at 1412 branches and 3295 ATMs in 528 cities as against 761 branches and 1977 ATMs in 327 cities as of March 31st 2008.During the year as a result of the CBoP merger and the step-up in retail acquisition, deposit accounts increased from 8.7 million to just over 15 million. Total cards issued (debit and credit cards) crossed 13 million including over 4 million credit cards. At the beginning of the financial year, on account of the CBoP merger the Banks gross NPAs as of March 31st 2009 were at 1.98% of advances as against 1.91% as of December 31st2008.In addition, applications received for loan restructuring which were yet to be approved or

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implemented amounted to Rs.305 crores,of which Rs.254 crores were classified as NPAs.Total standard assets which have been restructured or where restructuring is under consideration were therefore,0.1% of the banks gross advances as of march31st2009. HDFC GROUP SUBSIDIARIES HDFC Securities A trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates HDFC Mutual Fund HDFC Mutual Fund is one of the largest mutual funds and well established fundhouse in the country. HDFC Standard Life Offers a bouquet of insurance services and solutions like Life Insurance, Investment Options, Financial Planning, and Pension. HDFC Bank HDFC Realty Offers wide range and different types of property in India.

HDFC ERGO Motor Insurance, Health Insurance, Home Insurance from HDFC ERGO.

HDFC Home Loans, Housing Loans and Home Loans in India.

HDFC BANK COMPETITORS ICICI Bank www.icicibank.com ICICI Bank is Indias second largest bank. IDBI Bank www.idbibank.com

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Provides financial products and banking services in India.

TECHNOLOGY USED IN HDFC BANK In the era of globalization each and every sector faced the stiff competition from their rivals. And world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. And they create competition among the private sector banks and public sector banks. Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in each and every industry and gives the optimum return from the limited resources. Banks are service industries and today IT gives the Innovative technology application to banking industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the Indian banking transaction. Today there are different channels available for the banking transactions We can see that how the technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001(2%) and in the year 2008(25%).These type of technology gives the freedom to retail customers. Centralized Processing UnitsDerived Economies of Scale Electronic Straight through Reduced Transaction Cost Processing Data Warehousing (CRM)Improve Cost Efficiency, Cross Innovative Technology

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HDFC BANK is the very consistent player in the New Private Sector Banks. New Private Sector Banks to withstand the competition from public sector banks came up with innovative products and superior service. HDFC BANKS PRODUCTS AND SERVICES The bank operates on the following basic segments: Personal Banking: Encompasses all financial dealings between a commercial bank and an individual Wholesale Banking: Deals with all sorts of financial dealings with corporates, medium and small enterprises, financial institutions and trusts as well as the government sector. NRI Banking: Consists of personal banking relations with the Non-Resident Indians(NRIs) Table-2 Personal Banking Savings Account Salary Accounts Current Accounts Fixed Deposits Demat Accounts Safe Deposit Lockers Loans Credit Cards Debit Cards Prepaid Cards Investment and Insurance Forex services NRI Banking Rupee Savings Account Rupee Current Account Rupee Fixed Deposits Foreign Currency Deposits Accounts For Returning Indians Quickremit (North America, UK, Europe, Southeast Asia) IndiaLink (Middle East, Africa) Cheque Lock Box Telegraphic/Wire Transfer Funds Transfer Through Cheques/DDs/TCs

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Payment Services Net Banking InstaAlerts Mobile banking InstaQuery ATM

Mutual Funds Private Banking Portfolio Investment Schemes Loans Payment Services Net Banking InstaAlerts Mobile Banking InstaQuery ATM Phone Banking

1.2.1 Major players: All nationalize, nonnationalize, and private financer Details of home loan of different players:

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Home Loans Interest Comparison Chart

Bank/Housing Finance Corporation Processing Pre-Payment Fee Penalty 0-10Years 10-20 Years

Fixed No penalty if upto 25% of loan is cleared per year. Else 7.75 2% on the amount in excess of 25% 7.75 2% 0% Upto 3% 8.50 9.0 8.5 11.75 8.0

Floating

Fixed

Floating

Floating

ABN-Amro

0.50%

7.25

7.75

7.75

7.25

Allahabad Bank Andhra Bank Bank Of Baroda Bank of India Bank of Maharashtra Bank of Punjab Bank of Rajasthan Birla Home Finance Central Bank of India Corporation Bank

0%

7.25 8.00 7.50 7.5 7.5 7.50 7.5

8.25 9.25 9.5 9.25 11.75 8.25

7.75 8.75 8.0 7.75 8.0 7.50 7.5

7.75 9.00 8.25 8.25 8.25 7.50 8.0

8.00

8.00

8.5

8.5

8.75

0%

8.5

8.0

9.0

8.5

9.0

0%

8.0

7.5

9.00

8.25

8.50

Canara Bank

8.0

7.50

9.00

8.00

8.00

Can Fin Homes Citibank Dena Bank Dewan Housing Finance Ltd 0.50% 0 0% 0

7.75 8.25 8.75 8.5

7.25 8.25 7.25 8.0

8.75 8.25 9.25 8.5

8.0 8.25 7.75 8.0

8.0 8.25 8.0 8.0

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DHFL Federal Bank GIC Housing Finance HDFC Bank 1.0% 2% 9.75 8.75 7.25 7.5 8.25 9.75 8.5 7.5 8.0 8.0 8.0 8.25 7.5

HSBC

1.8%

Up to 25% of the loan amount every financial year NIL, For amount over 8.0 25% of loan amount in every financial year- 2% of amount prepaid 2% 2% 0 9.25 9.0 7.75 8.25

7.75

8.0

7.75

7.75

IDBI ICICI Indian Bank

0.75% 0.50% 0

7.5 8.0 7.25 7.75

9.25 9.0 8.25 9.25

8.0 8.0 7.75 9.25

8.25 8.0 7.50

Indian 0.5% Overseas Bank Kotak Mahindra Bank LIC Housing Finance Oriental Bank of Commerce 1% Nominal fee

8.5

8.5

8.25

7.25

7.5

8.0

7.5

8.0

7.5

7.5

8.0

7.5

<span style

1.2.2 Competition:

In private sector the basic competition between HDFC ,

ICICI., Axis Bank, HSBC, Citi bank

1.2.3 Marketing & Business strategies: HDFC BANK mission is to be a World Class Indian Bank, benchmarking themselves against International standards and best practices in terms of product offerings, technology, service levels, risk management and audit and compliance. The objective is to build sound

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customer franchises across distinct businesses so as to be a preferred provider of banking services. The objective is to build sound customer franchises across distinct businesses so as to be a preferred power of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Banks risk appetite. HDFCs business strategy emphasizes the following: Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain our current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce our cost of funds. It involves standard rules and policies.It establish checklist to facilitate autonomous Focus on high earnings growth with low volatility. INSIDE HDFC BANK FIVE S PART OF KAIZEN WORK PLACE TRANSFORMATION FOCUS ON EFFECTIVE WORK PLACE ORGANIZATION BELIEVE IN SMALL CHANGES LEAD TO LARGE IMPROVEMENT

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Every successful organization has their own strategy to win the race in the competitive market. They use some techniques and methodology for smooth running of business.HDFC BANK also acquired the Japanese technique for smooth running of work and effective work place organization. Five S Part of Kaizen is the technique which is used in the bank for easy and systematic work place and eliminating unnecessary things from the work place.

BENEFIT OF FIVE S It can be started immediately. Everyone has to participate. Five S is an entirely people driven initiatives. Brings in concept of ownership. All wastages are made visible. FIVE S MEANS 1) S-SORT SEIRI:It focuses on eliminating unnecessary items from the workplace.It is an excellent way to free up valuable floor space.It segregates items as per required and wanted. 2) S-SYSTEMATIZE SEITON: Systematize focus on efficient and effective storage method.It means it identify, organize and arrange retrivel.It largely focus on good labeling and identification practices. Its objective is A place for everything and everything in its place. 3) S-SPIC_N_SPAN SEIRO: It focuses on regular clearing and self inspection. It brings in the sense of ownership. 18

4) S-STANDARDIZE SEIKETSU: It focuses on simplification and standardization maintenance of workplace.It assigns responsibility for doing various jobs and decides on Five S frequency. 5) S-SUSTAIN SHITSUKE: It focuses on defining a new status and standard of organization workplace.Sustain means regular training to maintain standards developed under S-4.It brings in self-discipline and commitment towards workplace organization. HUMAN RESOURCES The Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. The bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external faculty. The bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers around 10,000 employees.

BOARD OF DIRECTORS Table-4 Managing Director ExecutiveDirector Executive Director Chairman Equities and Private Banking and NRI Business Aditya Puri Paresh Sukhthankar Harish Engineer Jagdish Kapur Abhay Aima

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Information Technology and Legal Treasury Merchant Services Audit and Compliance Credit and Market Risk Human Resources Administration

Anil Jaggia Ashish Parthasarthy Bharat Shah G Subramanyam Kaizad Maneck Bharucha and Mandeep Maitra

Infrastructure Branch Banking Navin Puri Assets and Credit Cards Pralay Mondal Retail Liabilities,Marketing and Direct Rahul N Bhagat Banking Channels Operations Finance Treasury AWARDS AND RECOGNITIONS Below are some of the prominent awards HDFC Bank won in 2008 under the stewardship of Mr.Puri Table-5 Business India Best bank 2008 Forbes Asia Fab 50 companies in Asia Pacific Asian Banker Excellence In Retail Financial Best Retail Bank 2008 Services Asia money Business Today-Monitor group Financial Express-Ernst and Young Award Best Local Cash Management bank Award Voted By Corporate One Of Indias most Innovative companies Best Bank Award In The Private Sector Rajan Ananthanarayan Shashi Jagdishan Sudhir Joshi

Category Global HR Excellence Awards-Asia Pacific Employer brand Of The Year 2007HRM Congress Business Today 2008award-First Runner Up Best Bank Award

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SWOT ANALYSIS STRENGTH: Right strategy for the right products. Superior customer service vs. competitors. WEAKNESSES: Some gaps in range for certain sectors. Customer service staff needs training. Sectoral growth is constrained by low unemployment levels and competition for staff. OPPURTUNITIES: Could extend to overseas broadly. Fast-track career development opportunities on an industry wide basis. Could seek better customer deals. THREATS: Very high competition prevailing in the industry. Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive.

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COMPETITIVE SWOT ANALYSIS WITH ICICI BANK: STRENGTH WEAKNESS OPPURTUNITIES S-O STRATEGIES Strength: Large capital base Oppurtunity: Market Expansion Strategy: Deep penetration into rural market W-O STRATEGIES Weakness: Workforce responsiveness. Opurtunity: Outsourcing of Non-Core Business. Strategy: Outsource customer care and other E-Helps. THREATS S-T STATEGIES Strength: Low operating costs. Threat: Incresed competition from other private banks. Strategy: Steps to ensure loyalty by old customers. W-T STRATEGIES Weakness: Not equal to International Standards. Threat: Entry of many foreign banks.

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Strategy: Consider additional benefits

HDFC HOME LOANS Home loans offered by HDFC Bank encompasses a wide range of loan options which are subject to various parameters like term of loan, financial status of the individual seeking loan and the purpose of loan. Owing to these diversifications, HDFC Home loans have grown in popularity over the years. HDFC is Indias largest housing finance company with a market share of 55% in loan disbursals.BeingBeing in the business for over 25 years; HDFC has an impressive loan portfolio for varied housing finance needs. In the home loan segment, HDFC offers loans for individuals to purchase (fresh/resale) or construct houses. There is a great flexibility and variety in the home loans as it is open to salaried and self employed individuals alike, to both resident and non-resident Indians and requires no guarantor, charges one time processing fees and offers choice of variable and fixed rate loans. It offers loans to construct/buy a new home, loans for home extension, home repairs and purchase of plots. In addition to the attractive loan schemes, HDFC customers can avail of a host of related benefits like Loan Cover Term Assurance Plan, automated repayment of home loan EMI and in-house scrutiny of property documents. Existing HDFC Bank home loan customers can avail of other loans such as Personal loans and Car loans at lower interest loans.

The advantages associated with HDFC Home Loans are: An individual can undergo a Home Loan Counseling where HDFC shares its experiences of providing Home Loans for 29 years.

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 Wide range of products which offers multiple choices to an individual to choose the loan plan that suits him/her the best. Multiple Repayment Options gives a customer a wider scope of repayment according to his/her financial situations. Wide network of financing also enables the individuals to get his/her loan sanctioned from a place of his/her choice and also pay the installments duly no matter where he/she is. The HDFC Bank with its varied offering of house loan and home finance offers the buyers an opportunity to select the perfect loan as per their individual needs. There is a wide range of home loans available with HDFC to choose from according to the needs of the buyers: Home Extension Loans: These loans are given for expanding or extending an existing home. For example: Adition of an extra room, a larger bathroom or even enclosing an open balcony.

FEATURES: MAXIMUM LOAN: The maximum amount of the loan is 85% of the cost of extension.

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MAXIMUM TERM: The maximum term of the loan is 20 years subject to the age of your retirement. Land Purchase Loan: These loans are available for purchasing land for both construction and investment purposes.

FEATURES: MAXIMUM LOAN: The maximum amount of the loan is 85% of the cost of the land and based on the repayment capacity of the customer. MAXIMUM TERM: The maximum term of the loan is 15 years subject to the age of your retirement. HOME IMPROVEMENT LOANS: These loans are available for improvement of the house. For Example: External Repairs, Tiling and Flooring,etc.

FEATURES: MAXIMUM LOAN: 25

For existing customers the maximum amount of loan is 100% of the cost of improvement. For new customers the maximum amount of the loan is 85% of the cost of improvement. MAXIMUM TERM: The maximum term of the loan is 15 years subject to the age of your retirement. SHORT TERM BRIDGING LOAN: It makes you realize your dream of buying a bigger and better home and gives you time to sell your existing property to pay off the loan. This is a short term loan to help customers with the interim period between the sale of your old home and purchase of a new home. You can take the loan even if you are an existing customer of HDFC.

FEATURES: MAXIMUM LOAN: The maximum amount of the loan is 90% of the cost of property. MAXIMUM TERM: The maximum term of the loan is 2 years. HOME EQUITY LOANS: HDFC Home Equity loans helps you encash the present market value of the property by taking a loan by mortgaging the property.

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FEATURES: PURPOSE: Loan can be for any purpose.However, the funds should not be used for speculation or any other purposes. Customers have benefited by taking loans to meet the following funding requirements Education Marriage Expenses Medical expenses

MAXIMUM LOAN: For existing customers the maximum amount is the balance of 60% of the market value and present loan outstanding. For new customers the maximum amount is 50% of the market value of the property (including the cost of the land).It is subject to minimum market value of the property being Rs.5,00,000 for Residential Property and Rs.7,50,000 for Non Residential Property.

MAXIMUM TERM: Table-6 Property type Residential Non Residential Residential and Repayment option EMI Based EMI Based Non Simple Interest Number of years 15 10 2 27

residential

REPAYMENT FACILITIES: HDFC provides Multiple Repayment Facilities to its customers. These facilities include Step up Repayment Facility, Flexible Loan Installments Plan, Tranche Based Equated Monthly Installments, and Accelerated Repayment Scheme. Step Up Repayment Facility: This facility helps young executives a much bigger loan today based on an increase in their future income, this helps executives buy a bigger home today. Flexible Loan Installments Plan: Often customers, parents and their children, wish to purchase properties together. The parent is nearing retirement and their children have just started working. This option helps such customers combine the incomes and take a long term home loan where in the installments reduces upon retirement of the earning parent. Tranche Based Equated Monthly Installments: Customers purchasing an under construction property need to pay interest (on the loan amount drawn based on level of construction) till the property is ready. To help customers save this interest, they have introduced a special facility of Tranche Based Equated Monthly Installments (EMIs).Customers can fix the installments they wish to pay till the property is ready.The minimum amount payable is the interest on the loan amount drawn. Anything over and above the interest paid by the customer goes towards

28

principal repayment. The customer benefits by starting EMI and hence repays the loan faster. ACCELERATED REPAYMENT SCHEME: Accelerated repayment Scheme offers you a great opportunity to repay the loan faster by increasing the EMI, whenever you get an increment, increase in your disposable income or have lump sum funds for loan repayment, you can benefit by: Increase in EMIs means faster loan repayment. Savings of interest because of faster loan repayment. You can invest lump sum funds rather than use it for loan prepayment. The return from the investments also gives you the comfort of paying the increased EMI.

ELIGIBILITY TERMS FOR HDFC HOME LOAN Due to varied offering of house loans and home finance, attractive loan interest rate and numerous other facilities besides a basic home loan, you would be sure that HDFC Bank Home Loans provides the perfect home loan for you. The eligibility norms for availing of home loans are easy and simple to follow. They have different norms for the different types of property loans available to you. These eligibility norms for home loans are applicable to all Resident Indians looking to avail of their home loans. CONDITIONS OF HOME LOAN You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. You must be employed or self-employed with a regular source of income.

29

LOAN AMOUNT The home loan amount depends on your repayment capability and is restricted to maximum of 85% of the cost of property or the cost of construction as applicable.

Table-7

Description Of Charges Loan Processing Charges Administrative Charges Prepayment Charges Floating Rate Of Interest Fixed Rate Of Interest

Interest Rate 1% 0.5% 2% 8.50% 8.25%

DOCUMENTS REQUIRED FOR HOME LOAN SANCTION: HDFC Bank the leading Home Loans Provider, offers attractive interest rates and unbeatable benefits to ensure that you get the best deal without any hassels.Keeping your convenience in consideration, they ask you for minimal mandatory documents for the sanctioning of your home loan. At HDFC BANK HOME LOANS they require the following documents to sanction your home loan: a. COMMON FOR ALL APPLICANTS: i. Allotment letter of the co-operative society/association of apartment owners.

30

ii. iii. iv.

Copy of approved drawings of proposed construction/purchase. Agreement for sale/sale deed/detailed cost estimate from architect/engineer for the property to be purchased/constructed. If you have been in your present employment/business or profession for less than a year, mention details of occupation for previous 5 years, giving positions held reasons for change and period of the same.

v. vi.

Applicable Processing Fees. Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the case.

b.ADDITIONALLY, IF YOU ARE EMPLOYED: i. ii. iii. Latest salary slip/salary certificate showing all deductions. If your job is transferable, permanent address where correspondence relating to the application can be mailed. A letter from your employer agreeing to deduct the monthly installments towards repayment of the loan from your salary.This wills expediate the processing of your loan application. C.IF YOU ARE SELF-EMPLOYED: i. Balance Sheets and Profit and Loss Accounts of the business/profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant. ii. A note giving information on the nature of your business/profession, form of organization, clients, suppliers, etc. Please take photocopies of all documents that are submitted to HDFC (including the application form) for your personal account.

31

ICICI BANK-THE POWER OF BELIEF INTRODUCTION ICICI bank is Indias second largest bank with total assets of Rs 3793.01 billion at March 31st 2009 and profit after tax Rs.37.58 billion for the year ended march 31st2009.The bank has a network of 1,449 branches and about 4,721 ATMs in India and presence in 18 countries.ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non life insurance, venture capital and asset management. The Bank has subsidiaries in the United Kingdom, Russia and Canada, branches in united States,Singapore,Bahrain,Hong Kong,Sri Lanka,Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates,China,South Africa,Bangladesh,Thailand,Malaysia and Indonesia.Its UK subsidiary has established branches in Belgium and Germany. History ICICI was founded in the mid-1950s at the behest of the World Bank, the Indian government and various captains of industry in India. Its purpose back then was to provide medium and longterm development finance for Indian business.

32

In the mid-1990s its business strategy shifted to take advantage of the opening of the Indian economy. The idea? To create a diversified financial services supplier offering a range of products, instead of concentrating purely on project finance.ICICI Bank was,therefore,established in 1994 to provide retail banking facilities across India BOARD OF DIRECTORS Table-8 Managing Director and Chief executive Chanda Kochhar Officer Deputy Managing Director Executive Director Senior Secretary Senior General Manager Executive Director Executive Director Senior Secretary Chief Technology Officer ICICI GOUP SUBSIDIARIES ICICI Brokerage Services Limited ICICI Distribution Finance Private Limited ICICI home Finance Company Limited ICICI Investment Management Company Limited ICICI Lombard General Insurance Company Limited ICICI Prudential Life Insurance Company Limited ICICI Securities Limited Sandeep Bakhshi Kannan.S Nita Colaco Nimesh Shah Sonjoy Chatterjee Ramkumar K Lucy Almedia Pravir Vohra

33

 ICICI Trusteeship Services Limited ICICI Venture Funds Management Company Limited Prudential ICICI Asset Management Company Limited Prudential ICICI Trust Limited Technology Platforms Much of what is deployed to support their various Knowledge Management initiatives is customdeveloped, but the tools are supported on a variety of standard hardware and software platforms, particularly Microsoft Windows, Linux, Microsoft Office, Open Office (the open-source alternative to Microsoft Office), and a host of other off-the-shelf and custom applications. Implementation was eased by the fact that it was not one single mega project, but a combination of many experiments and modular launches. This means that they nurtured what worked and discarded along the way any elements that plainly did not work. One early project was a Yellow Pages-style directory for the entire corporate group. These, of course, are quite common KM tools, helping put staff in direct contact with one another. The result, People finder, is the experts directory that employees use to locate others and update their own profile with interests, areas of expertise where they can help colleagues and other relevant information. Creating it was like opening the doors and windows in a dusty house shut for many months as people who did not even know who was sitting on the same floor as them suddenly got connected and it continues to be one of the most-used sections. Many implementations began as line-of-business pilots. At your Service is one such example in which employees who are also customers of the bank can talk directly with the product and process teams for personal banking issues. With a back-end plug-in to the call centre it serves the

34

dual purpose of learning while solving problems. It was so effective that it was replicated for other teams too. ICICI BANKS PRODUCTS AND SERVICES ICICI Banks operates on the following basic segments: Table-9

Personal banking Deposits Loans Cards Investments Insurance Demat Services Wealth Management

Wholesale banking Corporate Banking] Cash management Trade Services FXOnline SME Services Online Taxes Custodial Serviced Net

NRI banking Money Transfer Bank accounts Investments Property Solutions Insurance Loans

35

AWARDS AND RECOGNITIONS ICICI Bank bags the Best bank in SME financing (Private Sector) at the Dun and Bradstreet awards 2009.

36

 ICICI Bank NRI services win the Excellence in Business Model Innovation Award in the eighth Asian Banker Excellence in Retail Financial Services Awards Programme. ICICI banks Rural Micro Banking and Agri-Business Group wins WOW Event and Experiential Marketing Award in two categories:. Rural Marketing Programme of the Year and Small Budget on Ground Protection of the Year. These awards were given for Cattle Loan Kamdhenu Campaign and Talkies on the move campaign respectively. ICICI Banks Germany branch has been certified by Stiftung Warrentest.ICICI Bank is ranked 2nd amongst the 57 savings products across 19 banks. ICICI Bank Germany won the yearly banking test of the investor magazine Euro in the Call Money category. ICICI Bank was awarded the runners up position in Gartner Business Intelligence and Excellence award for Asia Pacific for its Business Intelligence functions. ICICI Banks Organizational Excellence Group was recently awarded ISO 9001:2008 certification by TUV Nord.The scope of certification comprised processes around consulting and capability building on methods of quality and improvements. ICICI Bank has been awarded the following titles under The Asset Triple A Country awards for 2009 Best Transaction Bank in India Best Trade Finance Bank in India. Best Cash Management Bank in India. Best Domestic Custodian in India.

ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the Canadian Helen Keller Centres Fifth Annual Luncheon in Toronto. The award was given to ICICI Bank for its long-standing support to its unique training centre for people who are deaf-blind. ICICI BANK HOME LOan ICICI Bank is one of the top listed banks to provide Home Loans in India. The ICICI Bank Home Loans offers unmatchable benefits to the prospective loan seekers, which ensure that one, get the best deal without any hassles.

37

Attractive Home Loans of ICICI bank with its flexible features to apply for owing a house in India is offered with usual Eligibility conditions and nominal Rates of Interest etc. ICICI Banks low Interest Home Loan in India attracts lots of customers to own a home of their dreams. As the home loan is offered with easy Repayment schedules the bank is one among the top banks in India to claim more number of Customers. The loans are offered by the ICICI Bank to suit the repayment capacity of the buyers to avail the loan by providing: 1. Attractive loan interest rates 2. Free Personal accidental insurance 3. Insurance options for your home loan at attractive premium. 4. Lucrative home loan amounts starting from Rs.2 lakhs. 5. Term loans up to 25 years. 6. Special 100% funding for select properties. The ICICI Bank with its varied offering of home loans and home finance offers the buyers an opportunity to select the perfect loan as per their individual needs. There is a wide range of Home Loans available with ICICI Bank to choose from according to the needs of the buyers: Adjustable rate Home Loan Fixed Rate Home Loan Part Fixed, Part Floating Rate Home Loan Smart Fix Home Loan Money saver Home Loan A Balance transfer of loan seekers existing home loan from other banks. OFFICE PREMISES LOANS

38

It is one of the things you have always desired. A place where you have the freedom to achieve your goals and fulfill your dreams. An Office of Your Own. This loan is especially meant for self-employed professionals like Doctors, Architects, etc. Choose a loan ranging anywhere between Rs.3, lakh and Rs.1 crore. Conveniently pay off your loan over a period of up to 15 years. LOAN AGAINST PROPERTY You can avail of a multipurpose loan against your property. You can avail of Loan against property for purposes like: a) Education b) Medical Reasons c) Buying a car d) Home improvement e) Financing your business f) Marriage Expenses g) Purchase of a new house or office Get loan up to Rs.3 crore. Avail of tenure up to 15 years Loans available against residential and commercial properties. PROPERTY OVERDRAFT The overdraft facility from ICICI Bank Home Loans allows you to borrow money against your property. The overdraft facility comes with a multi-city cheque book and phone banking facility. The best part is that you are charged interest only for the amount that you withdraw from the account. Whenever you deposit funds into the account, they go towards reducing the outstanding balance in the account. It offers the following benefits: Unlock the locked-up capital in your house or office property. Fast Processing and door-step service. 39

 Multi-city cheque book and phone banking facility. Pay interest only on the amount utilized. PART FIXED,PART FLOATING HOME LOAN A product that offers the dual benefit of fixed rate loans as well as floating rate loans. With this product, you can book part of your loan under a fixed rate plan and the other part under a floating rate plan.Thus; you can minimize the impact of any adverse changes in the interest rate regimes and at the same time, avail of any benefits that may come by way of favorable changes. SMART FIX HOME LOANS 3 years fixed and floating rate thereafter. A product that offers the safety of fixed rates plus the advantages of floating rates. For the first 3 years you get a fixed interest rate. From the fourth year, your loan gets switched to the prevailing floating interest rate. HOME IMPROVEMENT LOANS You can get a loan for renovation/refurbishment of your home. Get the same interest rate as applicable on home loans. Avail of up to Rs.50 lakhs Avail of loan up to 70% of cost of improvement. .Enjoy repayment period of up to 15 years.

ELIGIBILITY TERMS FOR ICICI BANK LOANS FOR RESIDENT INDIANS Due to varied offering of house loans and home finance, attractive loan interest and numerous other facilities besides a basic home loan, you would be sure that ICICI Bank Home Loan provides the perfect home loan for you. The eligibility norms for availing of home loans are easy and simple to follow. They have different norms for the different types of property loans available to you. These eligibility norms for home loans are applicable to all Resident Indians looking to avail of their home loans. 40

CONDITIONS OF HOME LOAN You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. You must be employed or self-employed with a regular source of income. LOAN AMOUNT The home loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of property or the cost of construction as applicable. Table-10 Description Of Charges Loan processing charges/Renewal charges Home Loans Home Loans: 0.5% of loan amount as Administrative fee or Rs.2,000 whichever is higher. Loan overdraft against property or office premises: 1% of loan amount or Rs.2,000 whichever is higher. Fees are Non-refundable. Prepayment Charges 2% on the principal outstanding on full prepayment Charges For Late Payment(loans) Home Loans: 2% per month. Home OD: 1.5% of the outstanding amount subject to minimum of Rs.500 and maximum of Rs.5,000. Interest Rate Swiping Charges Cheque swap Charges Document retrieval charges Cheque Bounce Charges 1.75% on principal outstanding Rs.500 Rs.500 Rs.200

DOCUMENTS REQUIRED FOR HOME LOAN SANCTION

41

ICICI Bank, the leading Home Loans Provider, offers attractive interest rates and unbeatable benefits to ensure that you get the best deal without any hassles. Keeping your convenience in consideration, they ask you for minimal mandatory documents for the sanctioning of your home loan. At ICICI Bank Home Loans they require the following documents to sanction your home loan: DOCUMENTS Bank statement for the last six months. Income Document e.g. Latest Form 16, Certified IT returns for latest 3 years. Administration Fee Cheque. Loan Enclosure Letter. Other Documents. For Individual borrowers: Photo Id Proof Residence Address Proof For Non Individual borrowers: Id Proof Office Address Proof

42

1.3 Purpose of the study:

Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a home on loan. Home loans means that you buy a house on installments. In simpler terms when you want to own a home and can not afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate.There are number of companies offer cheap loans at a low interest rate You can avail loan against existing house for renovation or expansion etc. The demand for home loans will not sag much. The reason is a substantial rise in the incomegenerating capability of Indian youth. So this particular section will keep the housing loan demand high and increased lending rates can only shelve their plans for some time.The research report also discusses the outlook of Indian housing sector, role of housing finance companies, growth of housing finance market, housing finance disbursements and housing loan disbursements by private sector banks. Every one of us has a dream to own a house I life time. Although home loans are given by almost all the Banks of India, purchasing the home of our dreams is not an easy task. As the salaried population living in India is in larger percentage, like any other country, when one decide to own a house, one can not afford to pay the entire amount in lump sum. So, the banks in India are offering housing finance with easy installment schemes with relevant interest rates to the buyers, which reduces their burden and allow them to decide to own a house without any hesitant mind. Providing Home Loans in India came to its full boon in the recent years and now it is spread on a huge scale as many banks are coming to offer the Home loans in different special schemes to attract more number of buyers. There are numerous nationalized as well as private banks that offer Real estate Mortgage Home Loans in a hassle free manner in India these days. The process of availing a home is made very easy that almost any middle class; especially salaried class population of India dreams to achieve their own house in their life time.

43

2. Research objectives: The demand for home loans will not sag much. The reason is a
substantial rise in the income-generating capability of Indian youth. So this particular section will keep the housing loan demand high and increased lending rates can only shelve their plans for some time. The prime objective of the study are To undertake the comparative analysis of privatize banks (HDFC bank and ICICI bank) in housing loan sector. To study consumer preference for the above two mentioned housing finance players. To know the market size and get the market potential of the target segments catered to. This done by simple random survey of the potential buyers

To analyze the satisfaction level of privatize banks (HDFC Bank and ICICI Bank) Home Loan Customers.

To know the strengths of the HDFC & ICICI brand and also those which can be daily to

strength the brand image.

. 44

3- Research Methodology: To know the strengths of the RELIANCE ads/promotion and

also those which can be daily to strength the brand image.

3.1 Research Design: A research design is the specification of methods and procedures for
acquiring the information needed.It is the overall operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedures. Research design denotes the description of the research design.The aim was to collect relevant information,which fulfill our requirement and can be analyzed at a later stage of study without any problem.This was to be done in minimum expenditures and least efforts and in a set period of time.For my research I select DESCRIPTIVE RESEARCH DESIGN to know the Comparative Study Of The Home Loan Scheme Offered By ICICI Bank And HDFC Bank and Assessing The level of Consumer Satisfaction in Muaffarnagar City.This helped us in having enough provision for protection against bias and maximizes reliability.

Descriptive study, as its name implies,is designed to describe something for example, the characteristics of the users of a given product,the degree to which product use varies with income,age,or other characteristics. ADVANTAGES OF DESCRIPTIVE STUDY: Involve relatively large number of observations. Analysis is more objective. Averages and percentages are calculated. DATA COLLECTION METHOD The methodology reveals the methods of data collection.There may be primary sources or secondary sources of data collection.

45

Collecting Secondary Data: After deciding my objective I looked for collecting and studying secondary data.It included extensive study of literature available in reports of HDFC bank and ICICI Bank,articles,newspapers,journals,magazines,handouts,pamphlets describing the banks. Study of secondary data gave me an insight into the problem into hand.It also provides me with clues and helped in designing primary research.It provided us a more accurate picture about the functioning of various service providers in the Muzaffarnagar city. Extensive use of secondary information in the form of magazines, journals, newspaper clippings,such as Business World,Business Today,Business India,Economic Times,etc.Internet websites of HDFC Bank and ICICI Bank.

Collecting Primary Data: The objective of Primary data is formulated on the basis of research objectives.Objectives set the guidelines and directions of research planning .Formulating the objectives offers the best feasible means of solution.The primary data for my study was being collected by conducting survey.To analyze buying behavior and in order to gain an insight into the buyer need-satisfaction level, a questionnaire was formulated and administered among 100 people.The tools for data collection used was following types: TELEPHONE INTERVIEW: The telephone interview is used in lieu of personal interviews.It is used because information has to be collected quickly and inexpensively.By it I asked the customer about their satisfaction about HDFC Bank and ICICI Bank Home Loan procedure.The direct and structured questions are asked by customers.

46

QUESTIONNAIRES: This method of data collection is quite popular,particularly in case of big enquiries.A questionnaire is a method of obtaining specific information about a defined problem so that data,after analysis and interpretation,results in a better appreciation of the problem. In order to motivate respondents and to get best of the information from them,I was tried to build questionnaire that is interesting,serve my objective,unambiguous and easy to complete and is not burdensome.The aim was to enable ease in analysis and facilitate easy classification of response to get meaningful outcome within acceptable limits. A few were in disguised,where the true purpose was hidden but was sufficient to bring in the right information from respondents.Depending on the requirement,the questionnaire was prepared.The sequence of questions in questionnaire was kept in a logical order.It included questions based on Simple Category scale where the respondent just have to say yes or no,Multiple Choice Single Response scale where the respondent can choose from many available options,Likert Scale where attitude was to be studied and Rank Order scale where ranking was required.After following a series of Trial and changes the finally evolved questionnaire was being used for survey work.

EXECUTION OF SURVEY WORK: The survey work is that was done to collect primary data.I conducted Consumer Surveyby using questionnaires.I individually approached to individuals and got the questionnaire filled by them.The individuals were randomly chosen.

47

ANALYSIS AND INTERPRETATION: After collecting the questionnaire filled,I scanned each of entry ensuring that all relevant information required for analysis is available and is in the form through which I can analyze.Adjustment was made where required keeping in mind that it does not hampers the outcomes of my objectives.Editing of data collected was done to detect errors and omissions and such corrections were made where required. Further,coding of responses to assign numerated or symbols was done for easy and fast analysis.Adopting suitable classes like Poor,Fair,Good,Very Good and Excellent helped in grouping and categorization of responses.The data after collection,correction and classification was processed and analyzed and compared in accordance with the outline made for the purpose at the time of developing research plan. The classified data was finally subjected to cross tabulation analysis and represented graphically for easy interpretation of results.

The methodology adopted was as follows:

Industry Scenario Sketch (utilizing secondary information) Extensive Interviews held with Primary/Secondary Sources

Interview with consumer (Home Loan)

Formulation and administration of a questionnaire

48

Formulation of the Recommended Strategy on the basis of the above mentioned Primary and Secondary information

SYSTEM OF RESEARCH METHODOLOGY: Instrument Used Technique Of Survey Sampling Unit Sampling Extent Sampling Method Used For Research Questionnaire Personal Interview Customer Ghaziabad, Region Random Survey Method

49

3.5 Limitations:
This research study was time bound and due to this only few topics were taken up for study. This research study was taken in a limited area only (i.e. Muzaffarnagar city) and findings may vary if the area of study is increased or changed. Some of the respondents might have been biased in their responses as such the analysis could vary to some extent. While analysis of data, some human errors could have been possible. Sample drawn through convenience sampling, for customer survey can not be well associated with the attributes of population.Here I got the questionnaire fill from people selected arbitrarily who happened to be those: we are familiar with e.g.our neighbors, our frinds,etc. The majority of the respondents were from educated middle class and perhaps this is the section of society which is being targeted by the Home Loan Companies.This is because of two reasons: a) The huge size of middle class population. b) Their increasing need and awareness for home loans in this class. Thus the sample drawn here was not a true representative of the people of Muzaffarnagar city but was fairly a sample of the segment targeted as potential customers by the Home loan Providing institutions.. Sample drawn through non-probability convenience sample for home market survey where the customer related attributes were being asked by the agents of different companies may give deviating results because different companies have different mission, vision, philosophy towards their service and the customer. These aspects can well differ in the segment (S) targeted by the 50

company. In other words the perception of the agents about the perception of the customer on various home loan related aspects can be specified to the organization he is associated with. Thus the perception of agent about the customers perception may not necessarily depict the customers perception exactly.

4- Data Analysis and Interpretation : The following analysis was done to

obtain the findings in accordance with our objectives determined during the course of study. To know about comparative study of home loan scheme offered by HDFC Bank and ICICI Bank and assessing the level of consumer satisfaction. Following questions asked in the questionnaire: The questionnaire was filled by 300 respondents. Out of 100,35% are females and 65% are males. The age of the respondents lie between 20years to 60 years. There are15% respondents lie between age group of 20-30 years,26%respondents are of 30-40 years of age,30% respondents are of age group of 30-40 ,14% respondents lie between age group of 40-50 years and 15% respondents are of age group 50-60 years.

51

Q.1.In which type of job you are? Table-11 Types Of Job No.Of Persons (%) 23% 39% Chart 1 24% 14% Government sector Private Sector Business Others

On The Basis Of Job

14%

23%

24%

39%

Govt sector

Private sector

Business

Others

ANALYSIS Out of 300 respondents, there are 23% persons who are in government sector,39% persons are from private sector,24% persons have their own business and 14% belongs to others category.

52

Q.2.What is your salary structure slab(Per Month)? Table-12 Salary No. Persons(%) <10,000 Of 29% 38% Chart 2 Salary Structure 25% 8% 10,000-20,000 20,000-30,000 >30,000

8% 29% 25%

38%

<10,000

10,000-20,000

20,000-30,000

>30,000

ANALYSIS Among 300 respondents,the salary of 29% persons are below Rs.10,000,salary of 38% persons lies between Rs.10,000-Rs.20,000,salary of 25% persons lies between Rs.20,000-Rs30,000,and salary of 8% persons is more than Rs.30,000.

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Q.3.What is your opinion regarding the home loan procedure? Table-13 Opinion No.Of Persons(%) 26% 37% Chart 320% 17% Complex Difficult(own safety) Simple Cant Say

Opinion R egarding H ome Loan

17%

26%

20%

37%

Complex Difficult(own Safety) Sim ple Cant Say

ANALYSIS Among 300 respondents,26% persons think that the home loan availing procedure is complex,37% persons believe that it is difficult (requires own safety),20% persons think that it is simple and there are 17% persons who do not have any opinion about it. Q.4 Which type of interest rate have you preferred? Table-14

54

Types interest No.Of persons(%)

of Fixed

Floating

Adjustable

Others

51%

38% Chart 4

9%

2%

Interest Rate
9% 2%

51% 38%

Fixed

Floatind

Adjustable

Others

ANALYSIS Among 300 respondents, 51% persons are interested in fixed rate of interest at the time of home loan, 38% persons are interested in floating rate of interest, 9% persons prefer adjustable rate of interest and 2 % prefers other interest rates.

Table-15

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Criteria

Lower Rate Easy Of Interest Availability

Flexible Repayment Period

Quality Of Lower Service Processing Fees 25% 16%

No.

Of 29% 17% Chart 5 13%

Persons(%)

Criteria Considering Home Loans

16%

29%

25% 13% Lower rate of interest Flexible repayment period Lower processing fees 17%

Easy availability Quality of service

ANALYSIS Among 300 respondents, 29% persons consider lower rate of interest while taking home loan, 17% consider easy availability, 13% consider flexible repayment period, 25% consider quality of service and 16% persons consider lower processing fees while taking home loan.

Q.6.Are you satisfy with the bank or financial institution from where you have availed the home loan? Table-16 Satisfaction Yes No 56

No. Of Persons(%)

65% Chart 6 Satisfaction Level

35%

35%

65%

Yes

No

ANALYSIS Among 300 respondents, 65% persons satisfy with the bank or financial institution from where they have availed the home loan but 35% persons are not satisfied with the bank or financial institution from where they have availed the home loan.

Q.7.How did you come to know about the specific financial institution offering home loan? Table-17 Source Of Phone Internet Television Friends/ Relatives Brochures Press

Information No. Of

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Persons(%)

22%

26%

28% Chart 7

9%

8%

7%

Sources Of Information
7%

8% 9%

22%

28%

26%

Phone Friends/Relatives

Internet Brochure

Television Press

ANALYSIS Among 300 respondents, 22% persons came to know about home loans through phone, 26% persons came to know through internet, 28% persons came to know through television, 9% persons through friends/relatives, 8% through brochures and 7% persons came to know about home loans from press.

Q.8.Which bank you prefer to take personal loan? Table-18 Bank No. Of Persons(%) HDFC Bank 37% Chart 8 ICICI Bank 29% Others 34%

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Preference Of Bank

34%

37%

29%

HDFC Bank

ICICI Bank

Others

ANALYSIS Among 300 respondents, 37% persons prefer HDFC Bank to take personal loan, 29% persons prefer ICICI Bank and 34% persons prefer other banks to take personal loan.

Q.9.Which bank provide home loan at lower rate of interest? Table-19 Bank No. Of Persons(%) HDFC Bank 31% ICICI Bank 28% Chart 9 Others 41%

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Lower Interest Rate

31% 41%

28%

HDFC Bank

ICICI Bank

Others

ANALYSIS Among 300 respondents, 31% persons say that the interest rate is lower in HDFC Bank, 28% persons says that it is lower in ICICI bank and 41% persons says that the interest rate is lower in other banks.

Q.10.Easy availability is an important factor for home loans.Do you agree? Table-20 Opinion No. Of Totally Disagree Disagree Agree Totally Agree

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Persons(%)

17%

20% Chart 10

35%

28%

Opinion about Easy Availability

17% 28%

20%

35%

Totally Disagree

Disagree

Agree

Totally Agree

ANALYSIS Among 300 respondents, 17% persons says that they totally disagree with the fact that easy availability is an important factor for home loan, 20% persons disagree with it, 35% persons says that they agree and 28% persons says that they totally agree with the fact that easy availability is an important factor for home loan.

Q.11.Which bank easily provide home loan? Table-21

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Bank NO. Persons(%)

HDFC Bank Of 33% Chart 11

ICICI Bank 39%

Others 28%

Easy Availability

28%

33%

39%

HDFC Bank

ICICI Bank

Others

ANALYSIS Among 300 respondents, 33% persons say that HDFC Bank easily provide home loan, 39% persons says that ICICI Bank easily provide home loan and 28% persons says that other banks easily provide home loan.

Q.12.Flexible repayment period plays an important role while taking home loans.What is your opinion? Table-22 Opinion Indifferent Agree Totally Agree 62

No. Of Persons(%)

36%

42% Chart 12

22%

Opinion About Flexible Repayment Period

22% 36%

42%

Indifferent

Agree

Totally Agree

ANALYSIS Among 300 respondents, 36% persons are indifferent about flexible repayment period, 42% persons says that they agree with the fact that flexible repayment period plays an important role while taking home loan and 22% persons totally agrees with the fact.

Q.13.Which bank provide flexible repayment period? Table-23 Bank No. Of Persons(%) HDFC Bank 38% ICICI Bank 30% Chart 13 Others 32%

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Flexible Repayment Period

32%

38%

30%

HDFC Bank

ICICI Bank

Others

ANALYSIS Among 300 respondents, 38% persons say that HDFC Bank provide flexible repayment period, 30% says that ICICI Bank provide flexible repayment period and 32% persons says that other banks provides flexible repayment period.

Q.14.Do provisions of more insurance affect your selection of mortgage from banks? Table-1 Table-24

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Opinion No. Of Persons(%)

Agree 67% Chart 14

Disagree 33%

Opinion About Insurance

33%

67%

Agree

Disagree

ANALYSIS Among 300 respondents, 67% persons agree with the fact that insurance affect their selection of home loan from banks and 33% persons disagree with it

Q.15.Prepayment penalty need to be taken into consideration while taking home loan.What is your opinion? Table-25 Opinion No. Of Persons(%) Indifferent 29% Agree 36% Totally Agree 35%

65

Chart 15

Opinion About Prepayment Penalty

35%

29%

36%

Indifferent

Agree

Totally Agree

ANALYSIS Among 300 respondents, 29% persons are indifferent about prepayment penalty, 36% says that they agree with the fact that prepayment penalty need to be taken into consideration while taking home loan and 35% persons totally agrees with it.

Q.16.Which bank charges lower prepayment penalty? Table-26 Bank No. Of Persons(%) HDFC Bank 27% ICICI Bank 38% Chart 16 66 Others 35%

Lower Prepaymen Penalty

27% 35%

38%

HDFC Bank

ICICI Bank

Others

ANALYSIS Among 300 respondents, 27% persons says that HDFC bank charges lower prepayment penalty, 38% persons says that ICICI bank charges lower prepayment penalty and 35% person says that other banks charges lower prepayment penalty.

Q.17.Do miscellaneous expenses affect your selection of home loans? Table-27 Opinion No. Of Persons(%) Yes 58% Chart 17 67 No 42%

Opinion About Miscellaneous Expenses

42% 58%

Yes

No

ANALYSIS Among 300 respondents, 58% persons says that miscellaneous expenses affect their selection oh home loans but 42% persons says that it does not affect their selection.

Q.18.Which bank charges lower processing fees? Table-28 Bank No .Of Persons(%) HDFC Bank 42% ICICI Bank 38% Chart 18 Others 20%

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Lower Processing Fees

20% 42%

38%

HDFC Bank

ICICI Bank

Others

ANALYSIS Among 300 respondents, 42% says that HDFC bank charges lower processing fees, 38% persons says that it is low in case of ICICI bank and 20% says that other banks charges lower processing fees.

Q.19.Good treatment in other relevant products and services is a crucial factor that affects selection of home loans. What is your opinion? Table-29 Opinion No. Of Persons(%) Indifferent 16% Agree 54% Chart 19 69 Totally agree 30%

Opinion About Good Treatment

16% 30%

54%

Indifferent

Agree'

Totally Agree

ANALYSIS Among 300 respondents, 16% persons are indifferent about the treatment provided by banks to them, 54% persons says that they agree that they take into consideration the way,They are treated by banks and 30% persons totally agree with it

Q.20.According to you which bank provides better services and good treatment in other products and services? Table-30

Bank No. Of Persons(%)

HDFC Bank 27%

ICICI Bank 39%

Others 34%

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Chart 20

Good Treatment In Other Products And Services

34%

27%

39%

HDFC Bank

ICICI Bank

Others

ANALYSIS : Among 300 respondents, 27% persons say that HDFC bank provide good treatment, 39% persons says that ICICI bank provide good treatment and 34% persons says that other banks provides good treatment. Q.21.Reputation of banking institution is to be taken into consideration while selecting home loan. What is your opinion? Table-31 Opinion No. Persons(%) Chart 21 Of Disagree 4% Indifferent 27% Agree 41% Totally Agree 28%

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Opinion About Reputation Of Bank

4% 28% 27%

41%

Disagree

Indifferent

Agree

Totally Agree

ANALYSIS Among 300 respondents, 4% persona disagrees with the fact that the reputation of banking institution is to be taken into consideration while selection of home loan,27% persons are indifferent about it, 41% agrees with it and 28% persons totally agree that reputation of banking institution is to be taken into consideration

Q.22.According to you who enjoy good reputation in home loan sector? Table-32 Bank No. Of Persons(%) HDFC Bank 35% ICICI Bank 32% Others 33%

Chart 22

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Good Reputation

33%

35%

32%

HDFC Bank

ICICI Bank

Others

ANALYSIS Among 300 respondents, 35% persons say that HDFC bank enjoys good reputation, 32% persons says that ICICI bank enjoys good reputation and 33% persons says that other banks enjoys good reputation.

Q.23.Does tenure of home loan affects your selection of loan? Table-33 Opinion No. Of Persons(%) Yes 74% No 26%

Chart -23

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Opinion About Tenure

26%

74%

Yes

No

ANALYSIS Among 300 respondents, 74% persons say that the tenure of home loan affects their selection and 26% persons says that the tenure does not affect their selection.

Q.24.Which tenure is more preferred by you? Table-34 Tenure No. Of 1-5 years 18% 5-10 years 23% 10-15 years 13% Chart 24 15-20 years 30% Others 16%

Persons(%)

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Preferance About Tenure

16%

18%

30% 13%

23%

1-5 years

5-10 years

10-15 years

15-20 years

Others

ANALYSIS Among 300 respondents, 18% persons prefers to took home loan for 1-5 years, 23% for 5-10 years, 13% for 10-15 years, 30% for 15-20 years and 16% persons prefers some other tenure for home loan.

Q.25.Your opinion about HDFC home loan procedure? Table-35 Opinion No. Persons(%) Of Average 10% Good 14% Very Good 44% Excellent 32%

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Chart 25 Opinion About HDFC

10% 32% 14%

44%

Average

Good

Very Good

Excellent

ANALYSIS Among 300 respondents, 10% says that HDFC home loan procedure is average, 14% says that it is good, 44% says that it is very good and 32% says that HDFC home loan procedure is excellent.

Q.26.Your opinion about ICICI home loan procedure? Table-26

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Opinion No. persons(%) Of

Average 21%

Good 46%

Very Good 18%

Excellent 15%

Chart 26 Opinion About ICICI

15%

21%

18%

46%

Average

Good

Very Good

Excellent

ANALYSIS Among 300 respondents, 21% says that ICICI home loan procedure is average, 46% says that it is good, 18% says that it is very good and 15% says that ICICI home loan procedure is excellent.

5- Findings :
Out of 300 respondents, there are 23% persons who are in government sector, 39% persons are from private sector, 24% persons have their own business and 14% belongs to others category. (Refer Chart 1).

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 Among 300 respondents, the salary of 29% persons are below Rs.10,000,salary of 38% persons lies between Rs.10,000-Rs.20,000,salary of 25% persons lies between Rs.20,000-Rs30,000,and salary of 8% persons is more than Rs.30,000.(Refer Chart 2) Among 300 respondents,26% persons think that the home loan availing procedure is complex,37% persons believe that it is difficult (requires own safety),20% persons think that it is simple and there are 17% persons who do not have any opinion about it. (Refer Chart 3). Among 300 respondents, 51% persons are interested in fixed rate of interest at the time of home loan, 38% persons are interested in floating rate of interest, 9% persons prefer adjustable rate of interest and 2 % prefers other interest rates. (Refer Chart 4). Among 300 respondents, 29% persons consider lower rate of interest while taking home loan, 17% consider easy availability, 13% consider flexible repayment period, 25% consider quality of service and 16% persons consider lower processing fees while taking home loan.(Refer Chart 5). Among 300 respondents, 65% persons satisfy with the bank or financial institution from where they have availed the home loan but 35% persons are not satisfied with the bank or financial institution from where they have availed the home loan.(Refer Chart 6). Among 300 respondents, 22% persons came to know about home loans through phone, 26% persons came to know through internet, 28% persons came to know through television, 9% persons through friends/relatives, 8% through brochures and 7% persons came to know about home loans from press.(Refer Chart 7). Among 300 respondents, 37% persons prefer HDFC Bank to take personal loan, 29% persons prefer ICICI Bank and 34% persons prefer other banks to take personal loan. (Refer Chart 8). Among 300 respondents, 31% persons says that the interest rate is lower in HDFC Bank, 28% persons says that it is lowuer in ICICI bank and 41% persons says that the interest rate is lower in other banks.(Refer Chart 9). Among 300 respondents, 17% persons says that they totally disagree with the fact that easy availability is an important factor for home loan, 20% persons disagree with it,

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35% persons says that they agree and 28% persons says that they totally agree with the fact that easy availability is an important factor for home loan. (Refer Chart 10). Among 300 respondents, 33% persons say that HDFC Bank easily provide home loan, 39% persons says that ICICI Bank easily provide home loan and 28% persons says that other banks easily provide home loan.(Refer Chart 11). Among 300 respondents, 36% persons are indifferent about flexible repayment period, 42% persons says that they agree with the fact that flexible repayment period plays an important role while taking home loan and 22% persons totally agrees with the fact. (Refer Chart 12). Among 300 respondents, 38% persons say that HDFC Bank provide flexible repayment period, 30% says that ICICI Bank provide flexible repayment period and 32% persons says that other banks provides flexible repayment period.(Refer Chart 13). Among 300 respondents, 67% persons agree with the fact that insurance affect their selection of home loan from banks and 33% persons disagree with it.(Refer Chart 14). Among 300 respondents, 29% persons are indifferent about prepayment penalty, 36% says that they agree with the fact that prepayment penalty need to be taken into consideration while taking home loan and 35% persons totally agrees with it. (Refer Chart 15) Among 300 respondents, 27% persons says that HDFC bank charges lower prepayment penalty, 38% persons says that ICICI bank charges lower prepayment penalty and 35% person says that other banks charges lower prepayment penalty.(Refer Chart 16). Among 300 respondents, 58% persons says that miscellaneous expenses affect their selection oh home loans but 42% persons says that it does not affect their selection. (Refer Chart 17). Among 300 respondents, 42% says that HDFC bank charges lower processing fees, 38% persons says that it is low in case of ICICI bank and 20% says that other banks charges lower processing fees.(Refer Chart 18). Among 300 respondents, 16% persons are indifferent about the treatment provided by banks to them, 54% persons says that they agree that they take into consideration the way,They are treated by banks and 30% persons totally agree with it (refer Chart 19).

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 Among 300 respondents, 27% persons say that HDFC bank provide good treatment, 39% persons says that ICICI bank provide good treatment and 34% persons say that other banks provides good treatment.(Refer Chart 20). Among 300 respondents, 4% persona disagrees with the fact that the reputation banking institution is to be taken into consideration while selection of home loan,27% persons are indifferent about it, 41% agrees with it and 28% persons totally agree that reputation of banking institution is to be taken into consideration.(Refer Chart 21). Among 300 respondents, 35% persons say that HDFC bank enjoys good reputation, 32% persons says that ICICI bank enjoys good reputation and 33% persons says that other banks enjoys good reputation.(Refer Chart 22).

Among 300 respondents, 74% persons say that the tenure of home loan affects their selection and 26% persons says that the tenure does not affect their selection. (Refer Chart 23). Among 300 respondents, 18% persons prefers to took home loan for 1-5 years, 23% for 5-10 years, 13% for 10-15 years, 30% for 15-20 years and 16% persons prefers some other tenure for home loan (Refer Chart 24). 80

 Among 300 respondents, 10% says that HDFC home loan procedure is average, 14% says that it is good, 44% says that it is very good and 32% says that HDFC Home loan procedure is excellent.(Refer Chart 25). Among 300 respondents, 21% says that ICICI home loan procedure is average, 46% says that it is good, 18% says that it is very good and 15% says that ICICI home loan procedure is excellent.(Refer Chart 26).

6-Suggestions:
Rate of interest should be competitive with other financial institutions. Free accident insurance cover for home loan customers should be provided. Proper credit appraisal of the customers should be done. Daily reducing option should be introduced. Relevant information should be provided to customers time to time. Emphasis should be given on retaining customers. People who deal with customers should have complete knowledge about the housing finance industry. To penetrate in the rural market.

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 To provide plans for the low-income group. To decrease the training fees compare to Competitors (fees of advisors training). To increase the incentive package. To open more number of branches in different cities. To make training time flexible. Hope these points will be taken into consideration.

7-Conclusions:

After doing a lot of research and studying the materials available on

internet, newspapers, magazines and journals. I want to conclude that people prefers HDFC Bank more than ICICI Bank for personal loans in private sector. As private banks are coming daily in our country still, Mostly people prefers government banks for loans, especially older persons are more dependent on government banks. It is true that younger population preference is changing and they prefer more private banks because of services and facilities provided by private banks. The interest rate is lower in government banks but services are not up to the mark. The appearance of banks also becomes very important for the present generation and private banks 82

put their complete efforts on this, which is lacking in government banks. At last I can only say that HDFC Bank enjoys leading position in personal loan sector

References:

BOOKS

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 Kotler, Philip and Armstrong, Graw-Principles Of Marketing, Pearson Education, New Delhi 2004 Kotler, Philip Marketing management: Analysis, Planning, Implementations and control, Pearson Education, New Delhi. 2003, 11th edition. Sharma J K- Business Statistics (Pearson Education). Beri marketing Research (Tata McGraw-Hill), 1993, 2nd edition. Cooper and Schindler- Business Research Methods, 9th edition.

JOURNALS Business World Business Today The Economic Times

INTERNET www.hdfc.com www.hdfcbank.com

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 www.icici.com www.icicibank.com www.google.com www.wikipedia.org www.statebankofindia.com

QUESTIONAIRE (To undertake the comparative analysis of HDFC Bank and ICICI Bank in home loan sector) Gender: Age: 85

1. In which type of job you are? loan? Government sector Private sector Business Others <Rs.10,000 Rs.10,000-Rs.20,000 Rs.20,000-Rs.30,000 >Rs.30,000 Complex Difficult(Own Safety) Simple Cant say Fixed Floating Adjustable rates Others Lower rate of interest Easy availability Flexible repayment period Quality of service Lower processing fees

2. What is your salary structure slab (Per Month)?

3. What is your opinion regarding the home loan procedure?

4. Which type of interest rate have you preferred?

5. What criteria is considered by you while selecting the home loans?

6. Are you satisfy with the bank or financial institution from where you have availed the home

86

Yes No Phone Internet Television Friends/Relatives Brochure Press HDFC Bank ICICI Bank Others HDFC Bank ICICI Bank Others Totally Disagree Disagree Agree Totally Agree HDFC Bank ICICI Bank Others

7. How did you come to know about the specific financial institution offering home loan?

8. Which bank you prefer to take personal loan?

9. Which bank provide home loan at lower rate of interest?

10. Easy availability is an important factor for home loans. Do you agree?

11. Which bank easily provide home loan?

12. Flexible repayment period plays an important role while taking home loans. What is your opinion? Indifferent

87

Agree Totally Agree HDFC Bank ICICI Bank Others Agree Disagree

13. Which bank provide flexible repayment period?

14. Do provisions of more insurance affect your selection of mortgage from banks?

15. Prepayment penalty need to be taken into consideration while taking home loan. What is your opinion? Indifferent Agree Totally Agree HDFC Bank ICICI Bank Others Yes No HDFC Bank ICICI Bank Others

16. Which bank charges lower prepayment penalty?

17. Do miscellaneous expenses affect your selection of home loans?

18. Which bank charges lower processing fees?

19. Good Treatment in other relevant products and services is a crucial factor that affects selection of home loans. What is your opinion? Indifferent Agree

88

Totally Agree

20. According to you which bank provide better services and good treatment in other products and services? HDFC Bank ICICI Bank Others

21. Reputation of banking institution is to be taken into consideration while selecting home loan. What is your opinion? Disagree Indifferent Agree Totally Agree HDFC Bank ICICI Bank Others Yes No 1-5 Years 5-10 Years 10-15 Years 15-20 Years Others Average Good Very Good

22. According to you who enjoy good reputation in home loan sector?

23. Does tenure of home loan affects your selection of loan?

24. Which tenure is more preferred by you?

25. Your opinion about HDFC home loan procedure.

89

Excellent Average Good Very Good Excellent

26. Your opinion about ICICI home loan procedure.

90

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