“A comparative study of housing finances of SBI vice versa other financial institution.


In partial fulfillment of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION

Submited by Akhand pratap singh BBA 6th SEMESTER ROLL NO.

Under the supervision of Mr. Karunendra pratap singh Assistant Professor DEPARTMENT OF BUSINESS ADMINISTRATION

2011 -12 TECHNICAL EDUCTION & RESEARCH INSTITUTE Post-Graduate College, Ravindrapuri Ghazipur – 233001

CERTIFICATE This is to certify that Akhand pratap singh Pursuing BBA 6th Semester from this institute, has prepared the research project report in partial fulfillment of the requirement of the degree of Bachelor of Business Administration from Veer Bahadur Singh Purvanchal University, Jaunpur During the session 2011-12 “A comparative study of housing finances of SBI vice versa other financial institution.”This report is based on survey project undertaken by under my supervision during the course of 6th semester and fulfills the requirements relating to the nature and standard of BBA course of V.B.S. Purvanchal University, Jaunpur. I recommend that this project may be sent for evaluation.

Rahul Ananad Singh Reader & Head Dept. of Business Administration

Mr. Karunendra pratap singh Assistant Professor DEPARTMENT OF BUSINESS ADMINISTRATION


I Akhand pratap singh hereby declared are that this survey project report entitled ―A comparative study of housing finances of SBI vice versa other financial institution” Has been prepared by me on the basis of survey done during th course of my 6th semester BBA programmed under the supervision of assistant professor Department of Business Administration, TERI, Ghazipur. This research project is my bonfire work and has not been submitted in any University of Institute for the award of any degree or diploma prior to the under mentioned date. I bear the entire responsibility of submission of this project report.

April 2012

BBA 6TH SEMSETER Department of Business Administration Technical Education & Research Institute P.G. College, Ghazipur

Rahul Anand Singh (HOD-BBA T. College Ghazipur) who supervise and guide me entire whole Research Report premarital.N.R. I am grateful to Dr. College. P. Singh (Director T.. T.I. College.E. Karunendra pratap singh (Assistant Professor. Ghazipur) for their support & encouragement .R.I. P. P.G.R.G.I. Place: Date Akhand pratap singh Roll Number: .ACKNOWLEDGEMENT I would like to express my gratitude to Mr. Ghazipur) and Shri D. I would also like to thanks to all the respondents who directly provide the data for Research Report .G.E.E.

CONTENTS PREFACE CHAPTER 1   Introduction Objective CHAPTER 2   Research Methodology Limitation CHAPTER 3  Data analysis & Interpretations CHAPTER 4  Finding & Conclusion CHAPTER 5   Appendix Bibliography .

Third chapter is finding and conclusion. Data analysis & interpretation. The topic assigned for the research report is: I know the opinion of the sample by personal interview & questio“ “A comparative study of housing finances of SBI vice versa other financial institution.” The Research programmed is an integral constant of the cause curriculum of programmed in Management. The chapters are divided and defined in a logical. This based on the data analyzed and interrelated in previous chapters. sampling. importance. Project Report is an integral part of the B. The Introductory stage of this report is based on introduction of housing finance SBI & other finance institution . sample design. Purvanchal University Jaunpur ‖. Contains the findings and conclusion of the study. program at ―V. This course includes both theory and its application contents of curriculum. systematic and scientific manner to cover every nook and corner of the topic.B. it’s objective.A programmed is one of the most reputed professional courses in the field of management. scope & limitation. This programmed intends to get familiar with practical aspect of management through survey.PREFACE B. Each chapter has its own relevance and importance.B. The process of carrying out the whole research problem is defined in it. The importance of any academic course would give advantage and acceptance of the true from only through practical experience. Second chapter dealt with Research Methodology. It contains information about the methods of data collection. This is the most .B.S. Each student is required to prepare research report in his or her 6th semester. This project is divided into forth chapters.A.

important section of the report. publisher etc. gives a brief description of the process employed so far. issue year. . Depicted conclusion which concludes the whole repot. . Fourth Chapter one title bibliography contains the list of sources from where the matter and information is collected. that is. volume number. It contains the list of books. author. for repot is evaluated on the validity and correctness of its findings.

economic makeup.INTRODUCTION What is Housing Finance? Housing finance is a broad topic. However. the concept of which can vary across continents. In addition. For example. p. Housing Finance Policy in Emerging Markets. The International Union for Housing Finance. Looking at definitions from the mid-1980s. the selection of quotes below is offered as a snapshot of what housing finance as a topic covers: S―Housing finance brings together complex and multi-sector issues that are driven by constantly changing local features. or political system‖ (2009) Loïc Chiquier and Michael Lea. xxx. such as a country’s legal environment or culture. regions and countries. what is understood by the term ―housing finance‖ in a developed country may be very different to what is understood by the term in a developing country. particularly in terms of the areas it covers. the concept of housing finance and housing finance systems has been evolving over time. regulatory environment. we see that housing finance was defined primarily in terms of residential mortgage finance: . as a multinational networking organisation. has no official position on what the best definition of housing finance is.

p. But it also refers to the money we need to pay for it.―The purpose of a housing finance system is to provide the funds which home-buyers need to purchase their homes. very complicated housing finance systems have been developed. or microfinance applied to housing. mortgage loans and repayments. housing finance is what allows for the production and consumption of housing. largely as a result of government action. 1. Understanding Housing Finance – Meeting Needs and Making Choices. Developer finance is often in the form of unregulated advance payments by buyers. the ability to channel the funds of investors to those purchasing their homes. Notwithstanding this basic simplicity. a number of other much wider definitions have appeared: ―Put simply. rental finance. that is. the essential feature of any system. must remain. National Housing Finance Systems – A Comparative Study. in more recent years. However.‖ (1985) Mark Boleat. in the form of rents. It refers to the money we use to build and maintain the nation’s housing stock. in a number of countries. or ―There is recognition of other relevant forms of housing finance [apart from residential mortgage finance] such as developer finance. However. and developers sometimes provide long-term finance to buyers through instalments sales when mortgages . This is a simple objective.3.‖ (2009) Peter King. p. and the number of ways in which it can be achieved is limited.

The evaluation was carried out by four international expert groups. Finnish housing policy generally successful The overall final conclusion was that in many respects. Microfinance for housing is typically used for home improvement or progressive housing purposes.‖ (2009) Loïc Chiquier and Michael Lea. Although the overall impact of microfinance in housing remains limited. Housing Finance Policy in Emerging Markets. Finland's system for housing finance and housing subsidies are exemplary. the overcrowding of dwellings has decreased. and even during the deepest ecenomic recession. this activity can represent an important source of funding for those in the informal sector. During the last thirty years. the number of homeless has gone down. interviewed numerous actors in housing provision. government support . housing finance and housing policy. Evaluation of Finnish housing finance and support systems Ministry of the Environment organized an international evaluation of Finnish housing policy and financing systems in 2002. Loans are typically granted without pledging properties. xxxii. During their work the evaluators read available material.markets are not accessible. and visited residential areas. Finland's housing policy has been quite successfull: the level of hard furnishing in dwellings has risen. p.

. Nell | Shisaka Development Management Services This study analyzes the asset performance of government subsidized housing stock in South Africa.2011 | R.. Bertoldi.ensured that housing production continued. A. A. Housing Finance Documents Government Subsidised Housing Assets: Main Overall Report 01. M. and then a series of household interviews with a small sample of. Bertoldi.12. which was not the case in many other European countries. on the Deeds Registry.12. It assesses how subsidized properties were. M. Housing subsidy assets exploring the performance of government subsidised housing in south africa 01.2011 | R. A. Shisaka Development Management . Gordon. M. Government Subsidised Housing Assets: Macro Analysis 01. The overall study analyzes the asset performance of government subsidized housing stock in South Africa.2011 | R. Gordon. Nell | Shisaka Development Management Services This paper is a data led analysis of the performance of subsidised housing as a financial asset. Gordon.11. Bertoldi. It assesses how subsidized properties were trading formally. Nell | Finmark Trust...

Gauteng. microfinance and housing finance in Sub-Saharan Africa.. Gordon.2011 | R. The overall study analyzes the asset performance of government subsidized housing stock in South Africa. Government Subsidized Housing Assets: Qualitative Report 01. M. A. Nell | Shisaka Development Management Services This report summarizes the findings of the Qualitative Survey. on the Deeds Registry.2011 | R.04. undertaken in three communities: Slovoville. Government Subsidised Housing Assets: Time Line Analysis 01. Bertoldi. The overall study analyzes the asset performance of government subsidized housing stock in South Africa.05. A. It assesses how subsidized. Gordon. and then a series of household interviews with a small sample of respondents from three settlements. in Soweto. ... It assesses how.. Africa Business This publication by the International Advisory Services at the Frankfurt School of Business Management is a set of articles covering issues of mobile banking. Bertoldi. providing a background to South Africa’s housing policy since 1994. Nell | Shisaka Development Management Services This report is the Time Line Analysis. M.The study analyses of how subsidized properties are trading formally in South Africa.

01.2009 | L. Access to Housing Finance in Africa: Exploring Issues in Angola This report is meant to stimulate a larger debate about how to enhance access to housing by low and moderate income earners throughout Africa.06. M. Lea | World Bank This study pulls together both knowledge and experiences from advanced and emerging markets to help policy makers in all markets establish sound housing finance policies.2009 | | UN-Habitat .Housing Finance: Facilitate Access for Families to Healthy and Secure Housing This document presents the major lessons acquired by DID in implementing and accompanying housing finance in financial institutions in developing nations. Chiquier. Housing Finance Policy in Emerging Markets 01. Guide to Preparing a Housing Finance Strategy: Human Settlements Financing Tools and Best Practices 01.

although these would not considerably change Finnish housing policy. including the study of housing demand. The proposals aim at giving more scope to the private sector. Especially for an outsider reader.This guide sets out the key elements of a housing finance strategy. and lowering the threshold to homeownership. market forces and strategies to accomplish housing finance goals and objectives. . Displaying results 1 to 10 out of 20 Nevertheless. these reports give a good picture of Finnish housing policy and support systems. Evaluation groups provided a common report and also wrote individual reports. targeting public subsidies more justly. the identification of available resources. a number of reforms were proposed.

Maharashtra. 1955 Headquarters Mumbai. Financial services Founded July 1.State Bank of India State Bank of India Type Public Traded as NSE: SBIN BSE: 500112 LSE: SBID BSE SENSEX Constituent Industry Banking. India Area served Worldwide .

statebankofindia.com .34 billion (2011)[1] Total assets US$369.Key people Pratip Chaudhuri (Chairman) Products Credit cards. Consumer banking. mortgage loans.71 billion (2011)[1] Owner(s) Government of India Employees 222. wealth management Revenue US$32.investment banking.933 (2011)[1] Website www. private banking.56 billion (2011)[1] Total equity US$18.44 billion (2011)[1] Profit US$2. corporate banking.finance and insurance.

with over 16.[2] SBI provides a range of banking products through its vast network of branches in India and overseas.[3] The State Bank of India is the 29th most reputed company in the world according to Forbes. Lucknow. BSE: 500112. TheGovernment of India nationalized the Imperial Bank of India in 1955. through the Imperial Bank of India. The State Bank Group. It also has around 130 branches overseas. As of March 2011. In 2008. SBI has 14 local head offices situated at Chandigarh. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India. Bhopal & Ahmedabad and 57 Zonal Offices that are located at important cities throughout the country. SBI is ranked #292 globally in Fortune Global 500 list in 2011. to the founding in 1806 of the Bank of Calcutta. Kolkata. Hyderabad.000 outlets including 150 overseas branches and agents globally. Mumbai. Chennai.State Bank of India (SBI) (NSE: SBIN. It is a stateowned corporation with its headquarters in Mumbai. Maharashtra. and renamed it the State Bank of India.[4] Also. Delhi. making it the oldest commercial bank in the Indian Subcontinent. SBI is a regional banking behemoth and is one of the largest financial institutions in the world. The bank traces its ancestry to British India. which in turn became the State Bank of India. LSE: SBID) is the largest banking and financial services company in India by revenue. Bhuwaneshwar. it had assets of US$370 billion with over 13. Patna. Trivandram. It has a market share among Indian commercial banks of about 20% in deposits and loans. Banglore. Guwahati (North East Circle).000 branches. has the largest banking branch network in India. the government took over the stake held by the Reserve Bank of India. including products aimed at non-resident Indians(NRIs). with the Reserve Bank of India taking a 60% stake. . assets and market capitalization.

SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.[5] The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bank—its main competitors.[6]


Seal of Imperial Bank of India.
The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on June 2, 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on April 15, 1840) and the Bank of Madras(incorporated on July 1, 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters. These three banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on January 27, 1921, and the re-organized banking

entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On April 30, 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, enabling the State Bank of India to take over eight former state-associated banks as its subsidiaries. On September 13, 2008, the State Bank of Saurashtra, one of its associate banks, merged with the State Bank of India. SBI has acquired local banks in rescues. For instance, in 1985, it acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

International presence

The Israeli branch of the State Bank of India located in Ramat Gan.

As of December 31, 2009, the bank had 157 overseas offices spread over 32 countries. It has branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore bankingunits in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA. SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius). In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches – nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield. The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in British Columbia. In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria. In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex. The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin.[7]

all use the same logo of a blue circle and all the associates use the "State Bank of" name. in March 2001. The State Bank of India (with 74% of the total capital) along with the largest global banking group—BNP Paribas (with 26% of the remaining capital) headquartered in Paris—formed a joint venture which established India's most reputed and trusted life insurance company named SBI Life Insurance company Ltd. SBI has five associate banks. Associate banks Main Branch of SBI in Mumbai.. State Bank of India owns 76% of Giro Commercial Bank.[8].In Kenya. which it acquired for US$8 million in October 2005. followed by the regional headquarters' name:      State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore .

[9] The first step towards unification occurred on August 13. following the acquisition. The process of merging of State Bank of Indore was completed by April 2010.3% in State Bank of Indore.Earlier SBI had only seven associate banks that constituted the State Bank Group. 2010. The total assets of SBI and the State Bank of Indore stood at 9. and the SBI Indore branches started functioning as SBI branches on August 26.981. with itself.448 and over 21. Also. the then seven banks that became the associate banks belonged to princely states until the government nationalised them between October 1959 and May 1960. 2008 when State Bank of Saurashtra merged with SBI. Then on June 19.[11] . reducing the number of state banks from seven to six. (Individuals who held the shares prior to its takeover by the government hold the balance of 1. the government integrated these banks into the State Bank of India system to expand its rural outreach.000 ATMs.)[10] The acquisition of State Bank of Indore added 470 branches to SBI's existing network of 12.190 million as of March 2009. In tune with the first Five Year Plan. State Bank of Indore.77%. emphasising the development of rural India. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline operations. 2009 the SBI board approved the merger of its subsidiary. SBI holds 98. Originally. SBI's total assets will inch very close to the 10 trillion mark.

Bhatt's reign as SBI chairman on March 31. who is the former deputy managing director of the international division of SBI. Pratip Chaudhuri (Chairman) 2. Diwakar Gupta (Managing Director) 4. Non-banking subsidiaries Apart from its five associate banks. 2011. P. SBI Factors & Commercial Services Pvt Ltd 4. 2011. SBI Funds Management Pvt Ltd 3. The complete list of the Board members is: 1. As of August 4. (SBICPSL) 5. SBI General Insurance Current Board of Directors After the end of O. SBI DFHI Ltd 6. SBI Capital Markets Ltd 2. SBI Life Insurance Company Ltd. including Subir Gokarn. SBI also has the following non-banking subsidiaries: 1. A Krishna Kumar (Managing Director) . Ltd. Hemant G. there are twelve members in the SBI board of directors. Contractor (Managing Director) 3. 7. who is also one of the four deputy governors of the Reserve Bank of India. SBI Cards & Payments Services Pvt. the post was taken over by Pratip Chaudhuri.State Bank of India Mumbai LHO.

and SBI group(including associate banks) has about 45. Sundaram (Director) 8. Gokarn (Director)[12] Branches of SBI   State Bank of India has 172 foreign offices in 37 countries across the globe.5. D. Subir V. Dileep C Choksi (Director) 6. Nadaf (Officer Employee Director) 10. Parthasarathy Iyengar (Director) 9.000 ATMs. K. SBI includes 99345 offices in India. including branches that belong to its associate banks.000 ATMs (25.500 branches. S. Bhatt on 31 March 2011. the day of his retirement). Rashpal Malhotra (Director) 11. G. D.P. Venkatachalam (Director) 7. India's number one ADB is in bellary i e State bank of India bellary ADB SBI Housing loan or Mortgage Loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! . D.    SBI has 21. Mittal (Director) 12.000th ATM was inaugurated by the then Chairman of State Bank Shri O. SBI has about 25.

'SBI-Home Loans' Unique features:  No cap on maximum loan amount for purchase/ construction of house/ flat Option to club income of your spouse and children to compute eligible loan amount  Provision to club expected rent accruals from property proposed to compute eligible loan amount Provision to finance cost of furnishing and consumer durables as part of project cost  Repayment permitted upto 70 years of age  Free personal accident insurance cover  Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost)  Interest applied on daily diminishing balance basis .

in respect of allotment of sites/ house/ flat  No Administrative Charges or application fee  Prepayment penalty is recovered only if the loan is pre-closed before half of the original tenure (not recovered for bulk payments provided the loan is not closed)  Provision for downward refixation of EMI in respect of floating rate borrowers who avail Housing Loans of Rs. 'Plus' schemes which offer attractive packages with concessional interest rates to Govt. to avail the benefit of downward revision of interest rate by 1% or more  In-principle approval issued to give you flexibility while negotiating purchase of a property . etc. Employees in Public Sector Oil Companies. Teachers.  Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board. Employees.5 lacs and above.

 ·Option to avail loan at the place of employment or at the place of construction  Attractive packages in respect of loans granted under tie-up with Central/ State Governments/ PSUs/ reputed corporates and tie-up with reputed builders (Please contact your nearest branch for details) Package of exclusive benefits:  Complimentary international ATM-Debit card  Complimentary SBI Classic/ International Credit Card with waiver of joining and first year's fees  Option for E-banking  Concessional package under 'Credit Khazana' for prospective car loan borrowers whose accounts are conducted satisfactorily .

 50% concession in charges in respect of all personal remittances/ collection of outstation cheques Purpose  Purchase/ Construction of new House/ Flat  Purchase of an existing House/ Flat  Purchase of a plot of land for construction of House  Extension/ repair/ renovation/ alteration of an existing House/ Flat  Purchase of Furnishings and Consumer Durables as a part of the project cost  Takeover of an existing loan from other Banks/ Housing Finance Companies Eligibility  Minimum age 18 years as on the date of sanction .

) if the house/ flat being purchased is proposed to be rented out . Steady source of income Loan Amount  Applicant/ any one of the applicants are aged over 21 years and upto 45 years . cess. subject to aggregate repayment obligations not exceeding 50%of NMI/ NAI To enhance loan eligibility you have option to add:  Income of your spouse  Income of your son/ daughter living with you.60 times Net Monthly Income (NMI) or 5 times Net Annual Income (NAI). etc. provided they have a steady income and his/ her salary account is maintained with SBI  Expected rent accruals (less taxes.48 times NMI or 4 times NAI.50% of NMI/ NAI  Applicant(s) aged over 45 years of age. subject to aggregate repayment obligations not exceeding 57.

The loan had a "door-to-door" maturity period of 12 years.584 MW). An NTPC press release said at the time of the declaration of the loan that: "The loan shall be utilized for financing the capital expenditure of ongoing and new projects. accompanied by a drawdown period of four years. which were a direct result of the lending constraints placed by the Reserve Bank of India and the increased risk .000 MW capacity by the end of year 2032 (NTPC'c capacity at the time of the declaration of the loan was 34. making it the largest loan SBI had ever given to any single customer in its entire 200 year history. A circle depicts perfection and the common man being the centre of the bank's business. Arup Roy Choudhury clarified that the loan amount would be used to add 128.  Slogans : "Pure banking nothing else" also includes : "With you .all the way" and : "a bank of common man" Loan to NTPC On July 8. 2011. Regular income from all sources Symbol and slogan  The symbol of the State Bank of India is a circle and not key hole and a small man at the centre of the circle." NTPC chairman at the time. SBI agreed to give a loan of 100 billion to NTPC (National Thermal Power Corporation).[13] This loan was offered amidst declining finance for power projects in India.

India (won the second year in a row) by The Banker Magazine Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009 Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SKOCH Award 2010 for Virtual corporation Category for its e-payment solution The Brand Trust Report[16]: 11th most trusted brand in India.751).awareness of power projects.577 MW or power generation capacity which would require an investment of 10.3 trillion). Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010          The Bank of the year 2009.[15] Recent awards and recognitions  Best Online Banking Award.[14] Employees SBI has turned into the third-largest employer in India among listed companies after Coal India Limited(383.347) and Tata Consultancy Services(226. . It will also help minimize the shortfall of around 4.51 trillion that the Power Ministry of India expected to incur in achieving the objectives of the Eleventh Five Year Plan (This plan targeted an addition of 78.

00. furnishing of house. to purchase/construct house/flat. whichever is higher at the time of loan maturity. as well as for renovation/repair/alteration/addition to house/flat.Home Loans STAR HOME LOANS Provides loans to purchase a Plot for construction of a House.Is /NBFCs at highly flexible and liberal terms and conditions  Citibank Standard Home Loan what is the eligibility for salaried individuals?  Gross annual income of Rs 1.  23 years of age and above maximum age of 58 years or retirement age. . Takeover of customer's housing loan extended by other Banks/F.000 or above. Bank of India .

3 crore. Besides you can take this loan for repairs and upgradation. HOME LOAN PROVIDERS BANKS ▪ State Bank of India ▪ Punjab National Bank ▪ Dena Bank ▪ Bank of India ▪ HSBC ▪ Standard Chartered . which includes the cost of fixtures. fittings etc. a reality Loan Requirement: We offer you loans ranging from Rs. . construct a house. The loan even helps you build an extension to your existing house or purchase a house that is up to 25 years old. 5 lakhs upto Rs. buy a ready built house or buy one under construction. . Dena Niwas Housing Finance Scheme You can avail of Dena Niwas Home Loan to purchase a plot. retiling. Features & Benefits  Your dream home.Grindlays ▪ Citibank  HSBC Home Loans HSBC Home Loans make it easier for you to move in as soon as possible without putting a strain on your wallet. POP works.

let us help you with a home loan that suits your pocket. With not just a low rate of interest. friendly and most convenient home loans for:  Construction or purchase of house/ flat. Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat. suits your pocket.  SBI Housing Loan SBI Housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! 'SBI-Home Loans' Standard Chartered India Home Loans While you decide upon a house that suits your family.  Purchase of house/ flat on First Power of Attorney basis from the original allottee. but also an unmatched level of service … . PNB Housing Loan PNB reaches out to you with fast.

Grindlays ▪ Citibank Great Variety of loans for:   Purchasing a land Purchasing a constructed flat / house  Purchasing a flat under construction  Home extension and renovation Great flexibility:  Loans for salaried and self employed individuals .Unique Features: Great Savings: HOME LOAN PROVIDERS  One time processing fees BANKS ▪ State Bank of India ▪ Punjab National Bank  No hidden charges ▪ Dena Bank ▪ Bank of India ▪ HSBC  Choice of variable and fixed rate loans ▪ Standard Chartered .

 Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat. You can also transfer your existing loan to Standard Chartered Bank today and save on interest. Your home loan entitles you to substantial Tax Benefits. but also an unmatched level of service PNB reaches out to you with fast. You can choose to take insurance for combinations of these components or for a single component.Mortgage Redemption Term Assurance. Insurance premium funding at your Home loan rate. and Personal Accident.   With not just a low rate of interest.  Purchase of house/ flat on First Power of Attorney basis from the original allottee. No Guarantor required  Choice of tenure from 5 years to 20 years Standard Chartered offers Insurance as well MRTA . friendly and most convenient home loans for:  Construction or purchase of house/ flat. Home Contents.HHP plan is a combination of Insurance for the Property. . HHP .

10 Lacs for purchase of Land/Plot. Security  Mortgage of property for which finance is being given.2 Lacs for furnishing.  In case of purchase of house/ flat from housing board/ society where mortgage cannot be created immediately. borrower and the Bank. Loan upto Rs.  Loan is available maximum upto Rs. .Extent of loan Individual  For construction/purchase of house/ flat: 80% of the cost of construction of house or purchase of house/ flat. a tripartite agreement shall be executed amongst the housing board/ society.  For carrying out repairs/ renovation/ additions/ alterations: 80% of the estimated cost subject to maximum of Rs. 20lacs.

KVPs.  Suitable third party guarantee acceptable to the Bank which may include guarantee from family members/ other relatives. Disbursement  For outright purchase of house/ flat. You can avail of Dena Niwas Home Loan to purchase a plot. NSCs. has to be provided. Securities. / PSU Bonds etc. For house/ flat under construction. In case of purchase of house/ flat on first power of attorney. additional security equal to 125% of the loan amount by way of mortgage of some other property or pledge of bank's FDR/ LIC policy/ Govt. the loan amount will be disbursed in stages as per progress of construction/ demand by selling agency. The loan even helps you build an extension to your existing house or purchase a house that is up to 25 years . buy a ready built house or buy one under construction. IVPs. the loan amount will be paid in lumpsum to the vendor. construct a house. Repayment Loan is to be repaid in equated monthly installments within a period of 25 years or before the borrower attains the age of 65 years.

Loan Amount  Up to Rs. BANKS ▪ State Bank of India ▪ Punjab National Bank ▪ Dena Bank  Your age on the maturity of the loan is less than retirement age if you are a salaried employee & below 65 years. if you have a business. Punjab National Bank etc or Financial Institution.old. You are eligible if: HOME LOAN PROVIDERS  You are a major individual. which includes the cost of fixtures. Besides you can take this loan for repairs and upgradation. resident or non-resident. It even gives you the option to shift an existing home loan with any other Bank like HSBC . including the loan installment of the proposed loan.100 lakhs for the purchase of a house. . having a regular source of income. retiling. POP works. fittings etc.Grindlays ▪ Citibank  The total deductions do not exceed 60% of your gross income. ▪ Bank of India ▪ HSBC ▪ Standard Chartered .  Spouses/Co-applicants income can be clubbed for enhanced eligibility.


as well as for renovation/repair/alteration/addition to house/flat. furnishing of house. Dena Bank.Is /NBFCs at highly flexible and liberal terms and conditions.SBI etc or F.300 lacs and repayment ranges upto 20 years. to purchase/construct house/flat. Security Simple equitable mortgage of the house/flat/apartment on which the loan is availed.50% of the sanctioned loan amount. . Upto 10 years. FLOATING RATE LINKED TO BPLR & NOT ANY INDEX/ REFERENCE RATE Repayment Upto 20 years-for the purchase of a new flat/house/construction/extension. Takeover of customer's housing loan extended by other Banks like Citibank. with a very reasonable margin and nominal processing charges. Punjab National Bank. Process Fees 0. renovation and upgradation. STAR HOME LOANS  Provides loans to purchase a Plot for construction of a House. No commitment /administrative charges.for repairs.  Maximum loan amount is Rs.

 Interest is calculated on daily balance basis which is of great advantage to customer as it results in lower interest amount. .  Prepayment of Loan permitted  Option for Floating as well as Fixed Rate of Interest.  Option for different EMI amounts for different periods during tenure of loan to suit customers repayment capacity.  Loan to NRIs as well as Persons of Indian Origin. The loan is available at very competitive rates of interest. currently available in the industry.

Savings. 3 crore. 5 lakhs upto Rs.Choose between fixed and floating rate home loans. .  Loan Tenure: Loans are available for tenures upto 25 years. Property Types: We offer loans to Resident Indians and NRIs for ready property.  Life Insurance Cover to borrowers for Loan Protection(optional)   HSBC Home Loans make it easier for you to move in as soon as possible without putting a strain on your wallet. more!  Repayment Options .  Free Personal Accident Insurance cover.. self-construction and home improvement. and speedy approvals.. Flexibility. Simplified application form/procedures for convenience of customers.     Features & Benefits Your dream home.a reality Loan Requirement: We offer you loans ranging from Rs. You also have the option of switching from a floating rate home loan to a fixed rate home loan once a year at no extra cost. under construction property.

ICICI Bank Home Loan Benefits:  Guidance throughout the process making  home buying hassle free  Get Instant e-Approval* With a network of 2500 branches we are always close to you    Doorstep service at your comfort Simplified documentation  Over 900 Bank Branches pan India for Sanction approval without having selected a servicing of your loans property   Free Personal Accident Insurance Insurance options for your home loan at attractive premium  Flexible repayment options Loan Amount The home loan amount depends on your repayment capability and is restricted to a maximum of 80% of the cost of the property or the cost of construction as applicable. Prepayment is permitted after a minimum of 6 months following loan disbursal. in case of salaried .You can opt to pre-pay up to 25% of your loan every year. Tenure Maximum tenure of your home loan can be 20 years. However. No Penalty option .

For loan sanction Self Employed Non Salaried Customers Self Employed Professional Professiona Application form with Application form with Application form with photograph duly signed by all applicants photograph duly signed photograph duly signed by by all applicants all applicants Identity. residence and age proof Identity. residence and age proof PAN card copy of the main applicant PAN card copy of the main applicant PAN card copy of the main applicant Last 3 months Salaryslips Education qualification certificate and proof of business existence Proof of business existence Form 16 / Income Tax Returns Last 3 years Income Tax Returns with computation of Income Business profile .customers it is capped at retirement age. residence and age proof Identity.

With the volatility in interest rates being high. it requires some efficient personal financial planning and discipline to ensure smooth cash flows that will not get you into any sort of . The interest rates have gone up quite significantly on fixed deposits and loans as the RBI implemented hikes in key policy rates over 10 times since last year in small tranches.Last 6 months bank statements Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account Last 3 years Income Tax Returns with computation of Income Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account Processing fee cheque Last 6 months bank statements Last 6 months bank statements (self and business) Processing fee cheque Processing fee cheque Privacy Policy Home loan interest rates have been on an uptrend since the beginning of last year due to the successive monetary policy tightening steps taken by the Reserve Bank of India (RBI).

financial trouble. Higher interest rates mean a higher monthly outgo in the form of home loan EMIs that drain a significant amount of money from the take-home income of a borrower. OBJECTIVE .

 To study about the financial institution which provide housing finance service?  To know about the various housing finance schemes provided by SBI & other financial  Institution. .  To study the challenge & opportunity regarding housing finance. To study about the housing finance services.  To know about their market share.

And also the purpose of this study is to obtain the perception about the company by both type of person one who were already with housing finance finance but they have good information about the SBI & its subsidiary & They have positive or negative perception in their mind about the housing finance.IMPORTANCE OF THE STUDY The purpose of this study is to obtain information about the housing finance which help to identification of the problem and to determine the issue dimension and magnitude to enumerate and evaluate the alternative solution to select the right course of action to follow the purpose of the study also to provide information to facilitate the identification of an opportunity or problem situation are encountered. Research Methodology .

Methodology The world methodology spell the meaning itself if the method used by the researches in obtaining information. a Magazine newspapers status of previous research report etc. The data ( information can be collected from primary sources & secondary sources. In other words we can say that the data which has already been used your different purpose by different people is known as secondary Primary data can be collected through questionnaire and personal interview as for as concern my research is limited to dealers personality Secondary data are collected from the various books journals new spapereditional expert suggestions web sites & internet & etc .Research Research is a purposeful investigation.) By primary data we mean data collected by researches himself for the first time to collaborate the data which has previously not been used is known as primary data By secondary data we mean the data collected from various published matters. infect research is an art of scientific investigation. It is a scientific & systematic search for knowledge & intimation on a specific topic research is use full & research objective can be achieved if it is done in proposes process. Research .Research is a common language refers to a search of knowledge. Research is scientific & systematic search for pertinent information on a specific topic.

2.Methodology is a scientific way to solve research problem. At times. Descriptive studies 3. Why a research has been defined. as the specification of methods and procedures for acquiring the Information needed. It is a plant or organizing framework for doing the study and collecting the data. Experimental . It is necessary for researchers to know not only know research method techniques but also technology.The scope of Research Methodology is wider than that of research methods. Designing a research plan requires decisions all the data sources.The research problem consists of series of closely related activities. research approaches. Research design is mainly of following types: 1. In it we study various steps that are generally adopted by researchers in studying their research problem. It may be understood as a science of studying how research is don’t scientifically. sampling plan and contact methods. The project is a study where focus is on the following points: RESEARCH DESIGN A research design is defined. Research instruments. Exploratory research. what data has been collected and what a particular methods have been adopted and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. the first step determines the native of the last step to be undertaken.

six studies design After only with control group design. Perhaps as a Result of an exploratory study. The hypothesis is tested and the experiment is done. There are following types of casual designs: I. before the project is initiated. II. B) After only design Before after design Before after with control group design Four groups. V.EXPLORATORY RESEARCH The major purposes of exploratory studies are the identification of problems. IV. Descriptive research is also characterized by a Preplanned and structured design. Consumer panel design Exposit facto design DATA COLLECTION METHOD . VII. EXPERIMENTAL DESIGN: . III.A casual design investigates the cause and effect relationships between two or more variables. The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity. VI. The investigator already knows a substantial amount about the research problem. the more precise Formulation of problems and the formulations of new alternative courses of action. DESCRIPTIVE STUDIES Descriptive research in contrast to exploratory research is marked by the prior formulation of specific research Questions.

Report Committees & Commissions Private Publication Research Institute PRIMARY DATA These data are collected first time as original data. Essentially they are raw materials. data obtained by the peoples. For example. publication Information from correspondents Mailed questionnaire Question filled by enumerators. They may be combined.PRIMARY SECONDARY Direct personal Interview Indirect personal Interview Published Sources Unpublished Sources Govt. The data is recorded as observed or encountered. totaled but they have not extensively been statistically processed. SECONDARY DATA .

Area of study: The study is exclusively done in the area of marketing. Journal/ Newspapers etc. business judgment. It is a process requiring care. it being an exploratory research. organizations. experience. working in the same areas like magazines. Publications Relating to Trade: 3. Period of Study: This study has been carried out for a maximum period of 4 weeks. Sampling Design: The convenience sampling is done because any probability sampling procedure would require detailed information about the universe. which is not easily available further. Unpublished Data: Data may be obtained from several companies. Sample Procedure: In this study ―judgmental sampling procedure is used.Sources of Secondary Data Following are the main sources of secondary data: 1. Area sampling is used in combination with convenience sampling so as to collect the data from different regions of the city and to increase reliability. and imagination for which there can be no mechanical substitutes. Judgmental sampling is preferred because of some limitation and the complexity of the random sampling. Official Publications. 2. sophistication.: 4. . Data Collected by Industry Associations: 5.

Systematic Random Sampling This is random sampling with a system! From the sampling frame. chosen to be related to the major variables being studied. It is not a haphazard sample as some people think! One way of achieving a simple random sample is to number each element in the sampling frame and then use random numbers to select the required sample. Probability sampling may be taken inform of: Simple Random Sampling A simple random sample gives each member of the population an equal chance of being chosen. the population is first divided into a number of parts or 'strata' according to some characteristic. and thereafter at regular intervals. printed tables of random numbers. tossing coins or rolling dice.Random numbers can be obtained using your calculator. a spreadsheet. This factor was chosen because it seems reasonable to suppose that it will be related to people's attitudes . Here. the variable of interest is the citizen's attitude to the redevelopment scheme. For this survey. and the stratification factor will be the values of the respondents' homes. or by the more traditional methods of drawing slips of paper from a hat. a starting point is chosen at random. Stratified Random Sampling With stratified random sampling. every item of the universe has an equal chance or probability of being chosen for sample.Method of the Sampling: Probability Sampling It is also known as random sampling.

every item in the universe does not have an equal. It is of following type: Convenience Sampling A convenience sample chooses the individuals that are easiest to reach or sampling that is done easy. who has been given quotas to fill from specified sub-groups of the population. In this type of sampling. This may be done for every element in these groups or a sub sample of elements may be selected within each of these groups. It is often used in marketing research. the total population is divided into these groups (or clusters) and a sample of the groups is selected. . Convenience sampling does not represent the entire population so it is considered bias. Then the required information is collected from the elements within each selected group. Non Probability Sampling It is also known as deliberate or purposive or judge mental sampling. Quota Sampling In quota sampling the selection of the sample is made by the interviewer. In this technique. chance of being included in a sample.Cluster and area Sampling Cluster sampling is a sampling technique used when "natural" groupings are evident in a statistical population. Judgment Sampling The sampling technique used here in probability > Random Sampling.

Data is collected from various customers through personal interaction. I have selected Probability sampling method for this research study. Data is collected with more interaction and formal discussion with different respondents and we collect data about investment pattern of people by face to face contact with the persons from whom the information is to be obtained (known as informants). Data Collection : . .The total sample size is 100 profiles. The interviewer asks them questions pertaining to the survey and collects the desired information. Specific questionnaire is prepared for collecting data.

Rapid Urbanization. 2nd Largest employment generated in this sector (after agriculture) 2. GDP growth rate averaging over 8% from 2003-2010 2. I would however. US $110 bn market size Indian Housing Finance Market – The problem .Data analysis & interpretation A lot has been written about India’s growing strength as an emerging nation. Rising middle Class 3. still like to highlight the following points to build up a base for further discussion: 1. Forex Reserves over $250bn 5. Increasing political stability with re-election of last government 4. Fosters development of ancillary industries via strong vertical linkages (forward & backward) 3. Service Sector contributing 60% of GDP Importance of Housing in Indian Scenario 1.

Moreover the growth rate in urban areas is clearly above that in rural areas signifying the urbanization phase India is currently undergoing with more and more people migrating from the rural to urban areas. 1. Very High population density 4. Lack of supporting financial products 5.3 million units in 1981. 22. Low competition 6.90million in 1991. Regulation & Exchange Risk However there is a hugedemand-supply disconnect here.The major problem plaguing the Indian housing industry is the consistent demand-supply mismatch in housing as pointed out earlier. ~20mn in 2001 and so on. which signify the need of ease of access to housing finance for the masses. The recent figures in this respect are worse. . The shortage was 23. Increasing disposable income 3. Also. Rapid Population Growth 2. India has the following features. Although a clear downward trend has been visible the fact is that the rate of closure of this gap has been decreasing over time.

We see that whereas a huge demand for housing finance exists in India. Government Initiatives: Housing finance problems as outlined above began to surface as early as in the 1970s. The Indian Government has taken various initiatives over time to address these problems: . which is a key indicator of Housing finance penetration. the mortgage/GDP ratio. This naturally is a great opportunity waiting to be tapped. is one of the lowest in the world.

2. in one form or another: 1. industry and commerce and hence. Their role has traditionally been limited to providing the working capital needs of business. they have not been very active participants in the housing finance market. Our analysis states the major reason for this is the high risk and illiquidity in giving housing loans from common corpus. Another reason for the same is that they are funded by short-term resources which cannot be profitably employed in long term lendings 2. a lot of reluctance has been noticed by these cooperative banks to provide loans for housing finance. Cooperative Banks: deploy funds from a common pool of resources to provide for various needs of its members.Competition in Housing Finance Sector in India The following are providers of housing finance in India. . Commercial Banks: is the largest mobiliser of savings and also in respect of coverage. In Indian Scenario.

they have not been very active in housing finance sector because of the large amounts and low creditworthiness involved leading to illiquidity and losses. the housing finance market competition in India can be summarized as follows: Current Housing Credit Products We visited several banks as customers for housing finance products. 5.3. However. In general most of them are providing slight modified schemes of the same basic version. Thus. 6. These institutions do not have adequate technical expertise to be able to design right product for the right target. However. Consequently. Cooperative housing finance societies: These are specialized institutions established and subsidized by NHB to cater to the housing needs of the masses. 4. 4. the noticeable aspect our research has revealed is that there are only about 20 companies accounting for greater than 90% of total housing loans provided. Regional Rural Banks: Again. 6. Herein we describe the basic . 5. state subsidy is major factor in their favour. Agricultural and Rural Development Banks: The major function of these banks is not the provision of housing finance. Housing Finance Companies: These are companies with principal objective of lending for housing finance. there is low threat from these too.

Terms for Salaried people .version of Standardized fixed rate mortgage (We have also enclosed the entire list below the text under this heading) We can see from the table collated below. We did not observe any significant difference between the terms offered to the 2 classes of people. The only significant difference was the requirement for security was much stricter in case of selfemployed individuals rather than for salaried individuals. Table 7 and 8 show the terms offered by different bank to salaried and self-employed people. as to how the basic structure described above is used in Indian Context by various housing finance institutions.

Terms for Self-Employed people .

Refinancing options I came across the following sources from which these housing finance institutions fund their products apart from Internal Funding / Ploughing back of profits which is basically Interest income and principal repayments redeployed in these businesses that is used for extending further credit to its clients. Also. Insurance Premiums . The others are as follows: 1. Bank Deposits (including interbank participation certificates) 2. securitization is a very common process to refinance the loans. but it basically means transfer or sale of loan assets and hence somewhat different from refinancing in the traditional sense.

3. Central & State Government funding (including NHB refinancing) and International funding Arranging in increasing order of duration (from left to right – bank deposits being the shortest and insurance premium. Contribution from members 4. the longest) for which these refinancing options are available gives us the following chart Summary From the above analysis. we can now draw an Industry Analysis Map of the Indian Housing Finance Market as follows: .

.Clearly. Hence. Since this is a new formed market for a hitherto unaddressed product. from the above analysis we can understand that Indian housing finance market is in its nascent stage of development. The drawbacks stem only from the event of unfavorable policy changes or uneven competition from state. we conclude that the Housing Finance market in India is very attractive and forms a good case for investment. Both the drawbacks are relatively unlikely on the basis of government’s current policy trends. there will be huge first mover advantages.

It does not take much to prepare a household budget. . The RBI is still increasing the interest rates. the RBI started raising the interest rates to moderate demand and check the rising rate of inflation. as demand and liquidity started increasing last year. though in small steps. to check the high inflation rate and at the same time ensure a gradual impact on individual as well as corporate borrowers. Making an expense plan helps in identifying and cutting down on unnecessary expenditure. It is also important to review the budgeted expenses against actual money spent every month. The RBI kept the interest rates low during the global slowdown of 2007-08 to stimulate demand. However. It is important to have realistic expectations while framing the budget and make some provisions for contingencies. sharp rise in global commodity prices etc. it is important to have a monthly budget for these expenses. There are several reasons for the excess liquidity and high inflation rate including the huge stimulus spending by governments of the Western countries. Here’s how you can plan your personal finance: Managing monthly expenses Since the inflation rate in basic commodities and food articles is high. It also helps in inculcating some discipline in personal spending habits.Finding Why interest rates increase The home loan interest rates are going up in mainly due to the excess liquidity in the banking system and high inflation rate globally (especially in the emerging markets).

Managing liabilities It is important to track your loans closely. the EMI does not increase as the banks adjust the rate hike by extending the loan tenure. Home loan borrowers should look at investing their short-term surplus cash in these interest-bearing instruments. It is important to pay the EMIs promptly and not default. one can talk to the bank to find alternatives.Managing investments As the RBI increased the key policy rates. on large loans such as home loans a hike in the interest rate can result in higher EMIs. especially the floating interest rate ones. it is important to track a loan account closely. the interest rates on debt instruments such as bank fixed deposits. during phases of rising interest rates. Most banks provide options such as switching to promotional schemes with a lower interest rate by paying an upfront fee. The banks hike the interest rates on floating rate schemes from time-totime. debentures etc have also gone up. on small loans. documentation charges etc). increasing the loan tenure or part prepayment of the loan to reduce the overall liability and hence monthly outflows. In case of any difficulty with a higher EMI. . Usually. However. A rate hike may or may not result in an increase in the EMI. Therefore. Switching a home loan from one bank to another is also an option but it should be exercised only after a thorough analysis of various charges involved (new loan processing fee. The returns can be used to make part prepayments on the home loan to bring down the monthly outgo. debt mutual funds.


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