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ACKNOWLEDGEMENT Perfect is the famous saying and when a person get practical experience under the guidance of expert of the respective field, the knowledge gained is priceless.

With the sense of great pleasure and satisfaction, I present this project report entitled “COMPARISON OF HOME LOAN SCHEME OF DIFFERENT BANKS” completing a task successfully is never a man efforts similarly completion of this report is the result of invaluable support and contribution of number of the peoples in direct and indirect manner. In the light of foregoing, first of all my heartfelt great fullness and thanks goes to Mr. SUMIT SURI as a MANAGER of HDFC LIMITED for giving opportunity to work for his highly esteemed organization and for being a constant source of inspiration and guidance throughout the project. Without his able support the project would not have seen the light of the day.

At this juncture, I would also like to thank all the other team members of the HDFC LIMITED. Without their indispensable cooperation, the project won‟t have been completed within the stipulated time period. Finally I would like to thank the staff of other home loan provider banks, without whose cooperation in providing the data for the project would have been impossible.

PREFACE Modern organizations are highly complex ad dynamics systems. They operate under very turbulent social economic and political environment. They are required to reconcile several incompatible goals. Conflicting roles and divergent interest they are also fraught with the use risk and uncertainties, hence tactful management of such organization to plan to execute guide, coordination and control the performance of people to achieve predetermined goals. Management has to keep the organization vibrant moving and in equilibrium. It has to achieve goal which themselves are changing it is therefore a problem highly complex and ticklish.

This information will be asset to marketing manager in making effective decisions. The researches are used to acquire and analyze information and to make suggestions to management as to how marketing problems should be solved.

The marketing research is the process which links to manufacturer, dealers and individuals through information in important part of curriculum of M.B.A. programme is project taken by the students to institute under which he or she is studying, after completion of third semester of the programme.

The objective of this project is to enable the students to understand the application of the academics in the real business life. I am fully confident that this project report will be extremely useful to the management.

however humble to give that warm and glowing feeling. Every individual aspires to own a home. But many either spend a lifetime saving to purchase a house or exhaust money on monthly house rents.INTRODUCTION The roof over one‟s head and ground beneath one‟s feet count as the bare necessities of life. not only do they fulfill that cherished dream of owing a house. one has much more than a feel good purchase in mind! It‟s also a crucial investment decision. There are ample opportunities today for young salaried investors to plan their moves early and buy a house at right time. But when one buys a home. . perhaps the biggest spending decision of one‟s life. Take a house loan and let the monthly rent (easily converted into affordable EMI’s) build dream home.and at right price. In the process. but also put themselves on the path to acquiring property that would meet the needs and aspirations of their growing family. even as it leads to wealth creation. There‟s nothing quite like owing a home.

planning for dream. Add to this the stable property prices over the last year and plunging interest rates.OBJECTIVE OF THE STUDY: The main objective of the study is to find out the tariff changes charges by other banks in comparison to HDFC bank. waiver of loan application processing fee and a customer friendly attitude is reason enough to celebrate the ascension of the home loan consumer as the king. are factored in as part-repayment of the principal component only at the end of each year.75% very recently. The growth is on account of two main factors:  One. to participate in the interest rate war. Rock-bottom interest rates. If one is still not satisfied with the lowered loan rates there‟s more. PROFITABLE PROPOSITION “The overall demand in residential sector has grown by about 7-8% in the past few months as compared to the same period last year.  Two. The thumb rule being that the more frequently interest is calculated. In response.] home could not have been better timed. standardization of periodicity of interest calculation across lenders (which make it easier to compare loans). Under the annual rest method. the better for the creditor. Under monthly rests. income tax exemption. Standard Chartered Bank and few others too lowered their rates. In other words one has to pay interest even on the installments one has paid until they are reduced from the principal at the end of each year. the principal is lowered by the appropriate amount each month. Most banks have changed the way the interest is calculated from annual rest to monthly rests. lower interest charges. IDBI Bank. . The aim of the study is to help HDFC to know where it lacks in loans and how for the performance of other banks is better so that HDFC figure out the common problems being faced by the customers while dealing in the loan department so that further HDFC can improve its services and schemes offered by them to their customers. with no similar rebates available for individuals in the high income group. Some industry watchers believe that the floating home loan rate will slip to 8% for long term loans another two or three years. the EMI‟s (equal monthly installment) one pay through a year. private players like ICICI Bank. they are creating a second asset. Market leader HDFC also brought down its interest rate to 8.

any Indian resident who is over 21 years of age at the beginning of the loan and below 65at its maturity can avail of the loan. Salaried Employees as well as Self. Though its price could fluctuate in the short terms. The Quantum of loan that one can avail of : Loan sanctioned depend on your repayment capacity – which is based on your current income and your future repayment capacity. Total Estate will show . NRI Salaried and RBI Self Employed. apart from lowering the cost of one‟s loan. the EMI on a fifteen year fixed interest loan for Rs.10 lakhs to Rs.Employed citizens can apply. the switchover to monthly rests has another advantage : it makes it easier to compare loans. can approach only nationalized banks and other HDFC for loans. They enjoy a good income currently. For example. So you don‟t have to be burdened with the interest and are free to plan your retirement savings. buy their accumulated capital isn‟t enough to purchase a house. Whereas a home loan can give them access to capital their current earnings. HOME LOAN Home loans are loans you have access to. 15 lakh has come down by Rs. the corresponding fall in the EMI on a floating rate loan is only 4165. Who can avail of these loans? According to lending institutions. Also. irrespective of the changes in the lending rates) is more pronounced than on floating rate loans (where the loan interest rate varies with the changes in the interest rate). if you take a 10 years old loan when you are thirty. under RBI guidelines. Why should one option for a loan to buy a house? Taking a loan seems like a good option when the money at hand is insufficient to buy the house of your dreams. you could repay it by the time you‟re forty. depending on whether you want to buy or build a house and can also be used to repair or extend an existing house. Benefits of taking a home loan: A home loan is very different from a personal loan like a car loan for instance.HDFC added monthly rests on its fixed interest loans apart from annul rests. You can utilize a home loan for financing an asset that will hold its value and even appreciate over the period of the loan. You would include your spouse‟s name to enhance the loan amount. 840. As a result the fall in the EMI‟s on fixed interest loans (where the interest rate is cons tant for the entire tenure of the loan. 15 lakh has come down by Rs. 1 crore.The maximum loan can be sanctioned varies with each bank/institutions and ranges from Rs. Consider couples in their twenties and thirties.

2. If you had opted to wait.20. save up and buy a house.10.A processing fee (PF) is charges at the time of submission of the application form and covers expenses incurred for processing the application form. home loans also come with many tax appreciation over the years. in the long run cost you much more.5 lakhs per annum is exempted form income tax (under section 23/24(1) of the Income tax act). 3. registration fee or transfer of such house property to the assesses is also considered under this amount. And. it would. Tax benefits of taking a home loan: The income tax authorities look with favor upon those servicing a housing loan from specified financial institutions. it is up to you to be wise enough to take advantage of this. 4.000 Stamp duty. Being a monthly payment. it is non-refundable.A simple interest calculated on the disbursement amount in case of a plot under construction. Administration fees. The amount you will have to pay you financier every month when repaying your loan. Financial Institutions. home loans: Leading Banks Housing finance companies FINANCIAL IMPLICATIONS OF AVAILING A LOAN (SMALL OR BIG) There are several expenses involved apart from repayment of the actual loan amount: 1. being a self-explanatory term that is exactly what it is. you would have paid 12 EMIs. Section 24 of the Income Tax: Interest on loan till Rs. . Processing fees. at the end of the year. over the years.The EMI is an abbreviated form of the equated money installment and is simply referred to as monthly installment in common parlance. EMI. the principle repayment eligible for rebate has been enhanced from Rs. which give.000 to the current limit of Rs. Section 88 of Income Tax Act: You get a 20% rebate on repayment of principle during a financial year. And. meet operating expenses. Once again. The value of your house generally while the loan remains constant. This fee has to be paid upfront by the customer – in some cases.

while the former deals with a fixed rate of interest over the entire duration of the loan.  Home purchase loan: This is the basic home loan for the purchase of new home.TYPES OF LOANS AVAILABLE Broadly two types. WHAT ALL ONE CAN TAKE THE LOAN FOR? There are different types of home loan tailored to meet ones needs here‟s all some of them. This is an added benefit that you get when you avail of a loan from an HFI. In such cases you have to arrange for the personal guarantee before the disbursement of your loan tasks place. This is calculated on the basis of your gross income and payback capabilities. LOAN THAT ONE CAN AVAIL Up to 85-90% of the total cost based primarily upon the individual‟s payback capacity.  Home conversion loan: This is for those who have financed the present home with home loan & wish to purchase& move to another home for which some extra funds are required through home on version loan .  The Installment that you pay is normally restricted to amount 45% of your monthly gross income. which is the lowest as per your eligibility.  You repay the loan either through Deduction against Salary.  You will be eligible for a loan amount.  Home improvement loans: These loans are given for implementation repair works & renovation in a home that has already been purchased by the client. GENERAL CONDITIONS THAT GOVERN A HOME LOAN: These are likely to vary with respect to the different types of housing loans:  The maximum period of the loan is normally fixed by HFIs. HFIs do provide for different tenors with different terms and conditions. the latter has the rate of interest changing according to the fluctuations in the market. However.fixed rate and variable rate loans. Post dated cheques.: addition of an extra room etc.existing loan is transferred to the new .  Some HFIs insist on guarantees from other individuals for due repayment of your loan.  Most HFIs have a panel of lawyers who go through your property documents to ensure that the documents are clear and are not misrepresented.  Home extension loan: This is given for expanding or extending an existing home for e. and standing instructions or by Cash/DD.  Home construction loan: This is available for the construction of new home.g.

home including the extra amount required eliminating the pre payment of the previous loan. . The bridge loan help finance the new home. until a buyer is found for the home.  Bridge loan: these are designed for those people who wish to sell the existing home & purchase another one.  Land purchasing loan: this loan is available for the purchasing of land for both construction and investment purpose.

HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai. HDFC was amongst the first to receive an in principal approval from RBI to set up a bank in the private sector. . HDFC (together with its fully owned subsidiary HDFC Investment Limited) owns about 31 % of the equity. as a part of the RBI‟s liberalization of the Indian banking industry. HDFC has developed significant expertise in retail mortgage loans to different market segment and also has a large corporate client base in relation to its housing related credit facilities and its investment in portfolio. The bank has also signed a memorandum of understanding for strategic business collaboration with chase Manhattan Bank in Feb. large shareholder base and unique consumer franchise. which has divested later on. ABOUT THE PROMOTER HDFC. is India‟s premier housing finance company and enjoy an impeccable track record in India as well as in international markets. the strong reputation in the Indian and international financial services market. is an Indian NBFS focusing on home loans. 2. HDFC also has an international office in Dubai. with its registration office in Mumbai. COMPANY PROFILE HDFC Limited founded in 1997 by Ravi Maurya and Hansmukh bhai Parekh. HDFC was ideally positioned to promote a bank in the Indian environment. the promoter.HDFC BANK INTRODUCTION HDFC (Home Development Finance Corporation) Home Loan. India. They had started with a strategic alliance with the Natwest group in UK with 20% equity. HDFC is the largest housing company in India for the last 27 years. 1999. HDFC has maintained a consistent growth in its operation and profitability. HDFC began its operations as a scheduled commercial bank on 16 th January 1995. HDFC Home Loans provide services at doorstep and helps you find a home as per your requirements. UAE with service associates in Kuwait. Its outstanding loan portfolio covers over a million dwelling units. Since its inception in 1997. With its tremendous brand equity. It was incorporated on 30th august 1994 in the name of „HDFC Bank Limited‟. India have been serving the people for around 3 decades and providing various housing loan according to their varied needs at attractive and reasonable interest rates. Owing to their wide network of financing.

shareholders. their principal competitors are the large public sector banks.. The large public sector banks have traditionally been the market leaders in the commercial lending. In mutual fund sales and other investment related products. which we attribute principally to the competition from new private sector banks. some of the foreign banks have a significant presence among non-resident Indians and also compete for non-branch based products such as auto loans and credit cards. while the large public sector banks have extensive branch networks and large local currency funding capabilities. However. foreign banks and in some product areas. non-banking financial institutions. transactional and foreign exchange services.customers. other new private sector banks and foreign banks in case of retail loan products. their principal competitors are brokers and foreign private banks. The bank seeks to achieve the status of a “preferred organization” among its major constituents. They face significant competition primarily from foreign banks. employees. In provision of debit cards and also expect to face competition from foreign banks when we begin offering credit cards.BUSINESS PHILOSOPHY The mission of the HDFC Bank is to be world class Indian bank. Foreign banks have focused primarily on serving the needs of multinational companies and the Indian corporations with cross. other private sector banks. customer focus. The retail deposit shares of the foreign banks are quite small in comparison to the public sector banks. while maintaining the highest level of integrity and corporate governance. which have much larger deposit bases and branch networks. This would imply a bank that would meet various financial needs of its customers in a convenient and cost effective manner at international standard of service.border financing requirements including trade. The Bank faces the strong competition in all of their principal lines of business. The business philosophy at HDFC bank is based on four core values: operational excellence. WHOLESALE BANKING Principal competitors in wholesale banking are public and new private sector banks as well as foreign banks. and have also declined in the last five years. RETAIL BANKING In retail banking. regulators. . Their primary competitors are large public sector banks. suppliers etc. and product leadership and people competitors.

This network of interconnected offices (on data circuits) helps HDFC to process application for purchase of property anywhere in India. HDFC has further established an office in Dubai and service associates in Kuwait. This extensive network helps HDFC in providing services to large and well spread out clients. HDFC has vast experience and a very committed and skilled staff to handle housing loan applications and solving customer problems. the compete principally with foreign banks in foreign exchange and derivatives trading as well as SBI and other public sector banks ion the foreign exchange and money market business. Auto loans Loans against shares Loans against RBI bonds Loans against insurance policy E. 9) HDFC is pioneer of housing finance in India and has been a leader in business for the last 23 years. HDFC LOAN SCHEME PURPOSE HDFC Limited offers loans for the following purposes:       Land purchase Home construction/purchase Home extension Home improvement loans Short-term bridge loans Non-resident premises loans for professionals. Oman and Quarter to make to easier for Middle East based non-resident Indians to apply for loan to HDFC-India. . The bank offers the following loans: 1) 2) 3) 4) 5) 6) 7) 8) Personal loans. LOANS HDFC brings back you a wide range of loans to cater your financial needs. HDFC has offices spread all over the country.TREASURY In treasury advisory services for corporate clients.Instant loans give the facility of loans approval in the 60 second on the internet. Consumer loans.

At HDFC you have the choice between the normal FRHL and the innovative ARHL. the interest component in an EMI will increase and the principal component will reduce. Collateral or interim security could be assigned to HDFC of life insurance policies.under the monthly rest option. resulting in an extension of the term of the loan. HDFC has already entered into arrangements with several employers enabling employees to avail of loans both from the employer as well as HDFC for the same property. However. pledge of shares and such other investments that are acceptable to the HDFC. if there is a change in RPLR.LOAN AMOUNT You can avail of maximum of up to 85% of the cost of the property.customer will be provided with an annual statement indicating the details of the interest and principal payment made during the year. whichever is earlier. Repayment will not ordinarily extend beyond your age of retirement (if you are employed) or on your reaching 65 years of age. .75%. Please do ensure that the title of the property is clear. However.e. Interim security may be required.The rate on your loan will be revised every three months from the date of first disbursement. loan or litigation which is likely to affect the title to the property adversely. Loans from HDFC are available even if you are availing a housing loan from your employer. the surrender value of which is at least equal to the loan amount. Alternatively you can also avail the part of the loan under FRHL and balance under ARHL. the interest rate on your loan may change. Principal repayment is credited at the end of every month. HDFC will endeavor to determine the repayment period to suit your convenience. guarantees from sound and solvent guarantors. including the cost of the land. marketable and free from encumbrance. (if the interest rate increases.75% . i. Interest rates on ARHL will be linked to HDFC‟s Retail Prime Lending Rate (RPLR) which currently is 13. RATE OF INTEREST The rate of interest of HDFC is 8. LOAN TENURE You can repay the loan over a maximum period of 20 years under both FRHL and ARHL. and vice versa when the interest rate decreases). HDFC also offers you the option to switch between schemes for the nominal fee. interest is calculated on monthly rests. if the property is under construction. the EMI on the home loan disbursed will not change. SECURITY Security for the loan normally is first mortgage of the property to be financed and/or such other collateral security as may be necessary. To elaborate there should not be any existing mortgage.

3) If your job is transferable. . 5) Your updated original bank pass book/s or original bank statement/s showing salary and saving entries for the last six months.DOCUMENTS/SUPPORTING DOCUMENTS TO BE ATTATCHED: FOR ALL THE APPLICANTS: 1) Allotment letter of the o-operative society/association of the apartment owners. 5) Applicable processing fees. giving position held. 4) If you have been in your present employment/business or profession for less than a year. 4) A letter from your employer agreeing to deduct the EMI towards the repayment of the loan from your salary. reason for change and period of same. This will expedite the processing of your loan application. ADDITIONALLY IF YOU ARE EMPLOYED: 1) Verification of the employment form with only part I filled in. 2) Latest original salary slip/salary certificate showing all deductions. permanent address where correspondence relating to the application can be mailed. 6) A photo-copy of your Form-16 (issued by your employer) for the last assessment year. 3) Agreement for sale/sale deed/detailed cost estimate from architect/engineer for the property to be purchased/constructed/extended/renovated. 2) Copy of approved drawings of proposed construction/purchase/extension. mention an a separate sheet details of the of the occupations for previous five years. 6) Proof of residence: attested copy of any one of the following: a) Ration card b) Passport c) Driving license d) Voters identity card e) Current telephone bill/electricity bill/gas bill 7) Proof of identity: attested copy of ay one of the following: a) Passport b) Driving license c) Voters identity car5d identity card issued by the employer (if employed in state/central government) d) PAN card 8) Certificate of loan outstanding issued by the lender (for refinance cases only) 9) Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the loan proposal.

Home loans can be applied for by either individually or jointly. ELIGIBILITY The repayment capacity as determined by the HDFC will help in deciding how much we can borrow (the cost of the property or Rs. Loans can avail up to a maximum of 85% of the cost of the property (including the cost of the land). ABOUT THE PRODUCT HDFC‟s Home Loans offers you various unique benefits and are easy to arrange and repayable in easy monthly installments. Repayment capacity takes into consideration factors such as income. Proposed owner of the property. assets. TAX BENEFIT You are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act. clients. . etc. You can repay the loan over a maximum period of 20 years. liabilities. spouse‟s income. HDFC‟s main concern is to make sure you can comfortably repay the amount you borrowed. The terms of the loan can be structured according to the customer requirement. 10000000 on a home loan to an individual. HDFC‟s main concern is to help individuals comfortably repay the borrowed amount. age. qualifications. of course. form of organization. And. in respect of which the loan is being sought. 1961. will have to be co-applicants. They determine the loan amount after evaluating the repayment capacity of the individual. stability and continuity of occupation and saving history.1crore whichever is lower). suppliers. However. 3) Copies of individual tax chalans for the last three years 4) Copy of advance tax chalan (if any) 5) Your updated original Bank Pass Book/s or Original Bank Statement/s showing saving s entries for the last twelve months. 2) A note giving information on the nature of your business/profession. HDFC lends up to a maximum of Rs. the co-applicants need not be co-owners.IF YOU ARE SELF EMPLOYED: 1) Balance Sheets and Profit & Loss Accounts of the business/profession along with copies of individual income tax returns for the last three years certified by the Chartered Accountant. number of dependents.

and not just in the business of providing finance. HDFC has further established an office in Dubai and service associates in Kuwait. BRANCH NETWORK: HDFC has offices spread all over the country. This network of interconnected offices (on data circuits) helps HDFC to process applications for purchase of property anywhere in India. Bahrain and Saudi Arabia to make it easier for Middle east based non-resident Indians to apply for the loan to HDFC-India. We have master files of most projects being developed by the reputed developers. This extensive network helps HDFC in providing service to large and well spread out clients. HDFC has vast experienced and very committed and skilled staff to handle housing loan applications and solving customer problems. Qatar. HDFC has developed various repayment options like Step Up Repayment Facility (SURF). This service is offered at any of the HDFC‟s offices. FLEXIBLE (CUSTOMIZED) REPAYMENT SCHEMES: Keeping in mind the fact that each individual has unique problem requiring unique solution. . This has enabled HDFC to respond to customer needs and build up capabilities to approve loan on the spot or disburse them fast.SUPERIOR PROCESSING CAPACITY: HDFC has over the years invested substantially into the computer systems and training. Flexible Loan Installment Plan (FLIP) Balloon Payment plan and Structured Repayment Plan. EXPERIENCED TRAINED STAFF: HDFC is a pioneer of housing finance in India and has been a leader in the business for the last 25 years. It has always been HDFC‟s endeavor to protect the interest of the borrower. as we believe that the buying a house is one of the most Important decisions in this life. Keeping this in mind HDFC will provide free counseling to on how and where to buy a house in India (property services) or what are the prices and trends in the real estate market or what precautions one should take before buying a house. LEGAL AND TECHNICAL GUIDANCE: HDFC has qualified legal and technical staffs who liaise with developer to collect and scrutinize the property documents and permissions. Oman. FREE COUNSELLING: HDFC believes that it is in the business of providing solutions to an individuals need for owing a house.

This means that HDFC will let the applicant decide what amount he can comfortably pay to HDFC in the first term of his Loan Repayment Schedule. However the benefits of these plans don‟t stop here. This facility is especially helpful to those customers who want to get a loan on an amount that is not falling within the permissible limit of their repayment capacity.He can now link 1. The rate of average increment. It also is in line with HDFCs aim to provide greater degree of personalization in service and the tools.In this plan HDFC helps the Applicant by letting him choose two EMIs .This statement HDFC proves time and Again by developing close relationship with individual customers and by constantly Developing and marketing in the market new and innovative products that increase the Comfort level of the customers. right through” . His existing and expected obligations. His existing and expected expenses 5. Along the same philosophy HDFC came up with Step Up Repayment Facility which once again reassures customers that HDFC helps you achieve your dream. Hence there can be the situation wherein the applicant is not in the position to pay the required EMI which is calculated by the ILPS (Individual loan processing system).HDFC in this case offers to let the applicant use one of the two plans to repay the loan amount. 3.This means that the Applicant can select the amount that he wants two pay for both the First and the Second terms of his repayment schedule.STEP UP REPAYMENT FACILITY HDFC Ltd has a hitherto “with you. 4. The EMI Chooser 2 This plan is an extension of the aforementioned plan . This translates into more help and more convenience to the applicant. The length of the term among others. The system will calculate the next two EMIs for the next two terms The customer can hence decide when he wants to repay the maximum amount of the Loan to HDFC and when he wants to repay minimum leftover or remaining amount of the loan in the form of still smaller EMIs. The Applicant can also allocate the term length for which he wants to pay what amount This translates into a great advantage to the Applicant . . His current salary 2. The EMI Chooser 1 In this plan the applicant gets the advantage from HDFC to select the amount that he wants to pay as his fist EMI.

SAFE DOCUMENT STORAGE FACILITIES: HDFC has state of art storage facilities which are theft and fire proof. In that case although there will be a problem at other places but in HDFC this is solved by taking different incomes in the terms. All Loans from HDFC Ltd are subject to Tax exemption and be treated as Rebate. at various locations where loan and property documents are stored.But A is 52 years old and B is only 25 . FLIP is used when the applicant and co-applicant want to jointly repay the loan. PARI PASSU/SECOND MORTGAGE ARRANGEMENT: HDFC has a tie-up with a large number if public sector organizations and banks which enable us to offer loans to your employees with the flexibility of their spouse also availing a loan from his/her own employer.HDFC can hence assist the Applicant in developing a much more personalized loan plan as compared to its competitors in the Housing Loan market. The Applicant can also save money by using these plans .This is also to assist the Applicant to easily secure a loan in the following condition. FLEXIBLE LOAN INSTALMENT PLAN (FLIP) Another First of its kind product from HDFC . easy repayment.Now consider the situation in which A and B want to take a loan and jointly repay it .A is the father and B is the son of A . personalization. A and B who want to take a loan for 14 years . There is however a problem in the situation which would otherwise not allow the loan to be sanctioned. The Applicant will hence obtain more benefit in case of Prepayment and elsewhere. There are two applicants hence two incomes . and freedom from many possible problems.This is because the total Outflow in case of a regular plan is more as compared to these special plans.Therefore in the joint payment they can combine their income to repay the loan . Hence HDFC lets the customer save their hard earned money. In this way valuable documents are stored safely over the period of the loan and are released almost immediately after a customer repay his loan.Let there be Mr. The advantage of FLIP in terms of the Applicant is that of joint payment. Hence the income that will be considered earlier will be the father‟s income and at his retirement or at any other selected stage of repayment we will begin to consider only the income of the son. . C. In the Illustration the father is going to pay only for 105 months and after that we are to consider the sons salary only for the next remaining 60 months.Hence A will retire after 8 years and will not be repaying the EMI but B can continue to repay the loan.

FEE: A processing fee of 0. This gives the customers the option of selling t6heir existing house if they wish to. This fee is in respect of the costs incidental to the application. HDFC can provide assistance in locating an appropriate house to such customers.5% of the loan amount applied for rs.20000 Rs.100000 fees Rs. a loan offer is made to you on acceptance of the offer. . HOME IMPROVEMENT LOANS: As an exclusive offer to its existing customers HDFC offers Home Improvement Loan up to 100% of the improvement cost as compared to the home improvement loans up to 70% of the improvement cost offered to the general public. This fee is in the respect of costs incidental to the application. HOME CONVERSION LOAN: HDFC offer the option of a home conversion loan to its existing customer who are interested in moving to a new house. Through this scheme the customer can apply to have their existing loan transferred towards the purchase of the new home. 1% of the loan at the time of submission of the loan application itself. For Non-resident Indians our interactive website offers another means of contacting us. Customers may also apply for an additional loan amount for the purchase of the new house. we will continuously enhance our website. HDFC can promptly send its application form cum brochure and other detail on its loan products by email to interested individuals. without having to repay their old loan APPLICATION CAN BE MADE BEFORE SELECTING THE PROPERTY: Individuals may make an application for the loan even if the property has not been selected or the construction has not commenced.5% of the loan approved. You have to pay an administrative fee of Rs.e.0.ELECTRONIC MAIL: HDFC through its E-mail services can promptly respond to queries. For example: Loan applied for Rs. In our effort to reach out globally dispersed Non-resident Indians.5 per rs.100 Rs. In addition. You can also pay the processing fee and administrative fee upfront i.1000 of the loan applied for is payable when the application form is submitted to HDFC. 500 On approval of the loan. Taxes as applicable will be charged on the fees collected.

HOW TO APPLY Customer can either download (in PDF format) the application form or get the application form by E-mail. You may be required to submit the copies of your Bank Statements or any other documents that HDFC deems necessary to verify the source of prepayment. HDFC will consider your application. Customer can make an application at any time after they have decided to acquire a house even when the house has not been selected or construction has not commenced. Customer can take the disbursement of the loan after the property has been completed and you have invested your own contribution in full (own contribution is the total cost of the property less HDFC‟s loan). if the amount being repaid is more than 25% of the opening balance. . as assessed by HDFC and not necessarily according to the builder‟s agreement. The loan will be disbursed in full or in suitable installments (normally not exceeding three in number)taking into account the requirement of the funds and the progress of the construction. make enquiries as it deems necessary and convey its decision to you. by demand draft (payable at part to HDFC) or by cash. On acceptance of the offer. You can make payment for fees and charges by cheque marked “payee‟s account only” drawn on a bank in a city where HDFC has an office or by demand draft (payable at par to HDFC).CHARGES: For Fixed Rate Home Loan (FRHL) an early redemption charge of 2% of the amount being prepaid is payable. Customers can make payments by the cheque marked “payee‟s account only” drawn on a bank in a city where the HDFC has an office. Customer need to submit it along with supporting documents and processing fee at any HDFC office that is convenient to the customer. However under Adjustable Rate Home Loan (ARHL) option early redemption charges of 2% is payable only in case of commercial refinance. you will have to pay an administrative fee for the loan approved. Alternately the customers can collect the application form from any of your nearest HDFC offices.

STAGES OF HOME LOAN Data Entry Application Munirka HUB Login Scanning DISBURSE The Loan Fix Chrg es Double Checking Over (DCOVR) Recommendation Over (ROVR) PROCESS  First of all documents are collected .

The data is then tabulated to develop the frequency distribution. the data are collected from different sources. .  Analyze the information: After the data is collected they are analyzed to know the findings. So.  Sampling size: It has been collected from four banks.  Sampling unit: Data have been collected from banks. so in order we go to service provider and services user which is the customers. Because it helps in knowing how to select the representative sample from the world or the general population.  Personal interview: as we were doing direct selling we interacted with my customers and asked about their views in selecting a service and what are their wants and expectations from a service provider. convenience sampling is used. the right research tools and techniques to complete the research.  Research instrument: The use of an effective research instrument is very important because through this instrument we collect data in this project through observations and personal interview were conducted.  Sampling plan: After finalizing the research approach and instruments a sampling must be designed.  Collect the information: After completing all the steps. The study of the consumer behavior is important because he is the king. research approaches. The research involves the following steps:  Define the problem and research objective: The problem and objective is to assess the services offered by the various service providers and what the customer wants. research instruments.RESEARCH MYTHODOLOGY Research methodology is an important part of every project. The research plan designed to take the decision on the data sources.  Developing the research plan: The second stage of the research methodology is to develop a research plan. the findings are presented that are relevant to the major marketing decisions.  Survey research: It was a descriptive research. representation sample.  Present the findings: As the last step. The research process is based upon survey method. sampling plan and contact methods.  Sampling procedure: what process should be used to collect the sample.

11. The banks generally try to go ahead of other banks in terms of attracting number of customers to their countries.75% (up to 20 lakh) & 9.50% (above 20 lakh) SBI Year 1 .10 Yrs.75% PNB Up to 5yrs9.10 Yrs.50%(above 20 lakh ) Year onwards 4 - up to 50 lakh9.50% (up to 20 lakh) & 10.15 Yrs. -16% 5 .20 Yrs16 % 5 to10yrs-9% (up to 20 lakh) & 9.ANALYSIS OF DATA The home loans provided by the banks are more or less same at the basic level. . 16 % 10 -15 Yrs.16% 15 -20Yrs13.25% (up to 20 lakh) & 10% (above 20 lakh) 5 to 10yrs-10% (up to 20 lakh) & 10.75% 30 lakh50lakh-9% Above50lakh9.5 Yrs. For this they are trying to offer some unique services as per the unique requirements of the unique important customers.75% (above 20 lakh) Up to 5yrs8. COMPARITIVE STATEMENT OF HOME LOAN PARTICULARS ROI(FIXED) HDFC 14% ICICI 1 -5 Yrs.25% (above 20 lakh ) 10 to 20 yrs10.25% 1 ..25% over 50 lakhs9.8% Year 2 & 3 9% ROI(FLOATING) Up to 30lakh8.25 % 10 .75% .16 % 5 .16 % 15 .

5% 2% 20 years 25 55 0.5% 2% 25 years 21 60 0.10 to20yrs9.25% (up to 20 lakh) & 9.5% 2% 25 years 25 55 .75% (above 20 lakh) PROCESSING FEE PENALTY TENURE MINIMUM AGE MAXIMUM AGE 0.5% 2% 15 years 25 55 0.

One innovation in the housing finance sector has been the introduction of floating rate home loan simply put the cost of such home loan or the interest rate not fixed during the tenure of the loan. Fixed rate loans should be preferred when the interest rates are expected to rise. which has benefited the loan seekers.  One other factor is increasing collaboration between Housing Finance Companies and builders. there was a trend of floating rate home loans being . the cost of your loan too changes.e. thus making housing more affordable.HDFC and LIC Housing Finance. From over 2% of the loan amount to as long as 0. where EMI‟s increases as the income of the individual increases has been a big hit with the individuals just starting off with their careers. Then there are factors on the supply side too which have supported this growth: More competition in the housing finance sector resulted in companies charging lower interest rates.COMPARISON OF MAJOR PLAYERS The markets for home loans have been sizzling in India. And from what industry experts believe that there is a little chance that there will be any significant decline in the growth rates going forward. Housing Finance Companies have introduced several new products to meet the needs of wide variety of customers. The home loan market has grown at a compounded rate of over 40% over the last four years. So what have been the key factors in triggering of this high growth period? There are several reasons for the same on the demand side: Faster rise income as compared to property prices. But is the choice that simple? In toda y‟s environment when there is a lot of talk about rising interest rate. profit margin)  The fee for getting the home loan has reduced dramatically over the last couple of years.  Decline interest rates. Ideally loan seekers should opt for a floating rate home loan when it is expected that the interest rate will decline going forward. Altogether is there still some merit in this instrument? “In the last one year. The spurt in growth in recent years and the prospect of continued buoyancy in demand have attracted many players to the industry which till a couple of years back had two major players. One such scheme. The result is cut-throat competition. sometimes even at the cost of spread (i. which have greatly reduced the cost of borrowing (both o0n interest and capital).25% (some companies are known to wave of the fee entirely). the Step up Loan. Such partnership minimizes the service and funding related issues significantly thus making it easier to buy property. So as the benchmark rate moves up or down. at some predetermined frequency (usually once a quarter). Instead interest rate is benchmarked against some index/ indicator. should investor shun floating rate home loan.

Apparently the reality is some what different. Suresh Menon . When considering a fixed rate home loan over floating rate of home loan a strong selling point is that if interest rate were to rise dramatically you will be protected. but then decline gradually over the next several years a floating rate product may be preferable. an important determinant of what you go in for should be the long term expectation of interest rate. Menon points out “The attraction of a floating rate home loan is that it does not attract a part prepayment charge.”  Second. For example if you (or the experts) expects the rates to rise for the next one year. So if you expect that interest rate are likely to move up. Moreover floating rate home loans do not change the rate of interest every quarter (even though they review the rate every quarter). opt for fixed rate home loan. This holds true in the current environment where the fixed rate loan is at a higher interest rate as compared to the floating rate loan. This could appeal to individuals who get lump sum bonuses which they can use to reduce their loan exposure. GM (Mumbai region). then you should ideally be in different between the two types of loan. the issue whether fixed rate home loan are actually „fixed rate‟. As always there is no one answer to whether you should go in for floating or a fixed rate home loan.25% to 21%. a fixed rate loan is generally priced higher as compared to the floating rate product. you are still better off with the floating rate product. The deciding factors then should be when you think the rates will increase and also the long term expectations of interest rates. . The other option for going in for a fixed rate product and then switching at the end of the year will entail costs (there could be penalty of 1%-2% of the outstanding loan amount) and may not make financial sense.  Third. If you are a person with very little appetite for risk or negative surprises. There are three important issues which one needs to consider before opting for one type of a loan over the other: First. Mr. but only to the extent of this differential. The difference is currently about 0. this trend is continuing” says Mr. HDFC Limited. As of now. It seems that companies that have given out fixed rate home loans can revise their rates upwards in exceptional circumstances (significant rise in interest rate for one) so if you think interest rate will remain rage bound over the near term and decline over the long term. But in case you can take on some risk a floating rate home loan is worth a look.more popular as compared to the fixed rate loan.

Its being sweet deal so for. Here again get a confirmation of the rate (and for how long it will remain fixed) via a letter. The RBI‟s position is that lending such sums will remain additional risk for the bank. they also get tax breaks. A floating interest rate allows customer to take advantage of interest rate movements. This will help in identifying the right property. 4) Bargain for a lower rate of interest. That is because of increasing competition in home loan some banks have been funding even 110% of the agreement value. Non performing assets in the housing segment are quite low below 1% and that. 3) Get pre-approval letter. However. Also. 5) Watch out for a predatory lending. They get immunity from adverse movements and read the benefits of any fall in interest rate but a floating rate loan makes sense only when interest rate are high so that they can take advantage of possible fall. Don‟t include false information on your home loan application to get quick approval. . If they are looking for a home loan. Get interest rate information from morethan one source and get the same information from each so you can compare the offers. But predicting interest rate movement could confound even seasoned market watchers. be prepared to cough up a pretty sum as down payment. Housing finance will reduce their „rack‟ rates for customers with the good credit record.50 percent). A bargain deal will easily fixed a home loan at significantly lower rates (at times you can get a discount of as high as 0. it helps with the stamp duty and registration charges and even furnishing. say bankers. administration charges and other costs that may be involved in taking the home loan. in a recent meeting with the bankers cautioned banks against lending 100% of the property value. having the letter in your hand will set a limit to the amount of money you can commit to the property. the bankers do not seen unduly worried. Find out about processing fees. The RBI.Five steps to take a right loan:1) Gather data on interest rate. A written statement of all the fees from the housing finance companies will ensure that there will be no surprises later on. as borrower not only need have no access to other funds. is due to the higher asset quality. Also do not borrow more money than you need or can afford. the bank may not have sufficient collateral security to recover dues and may have to write off the additional borrowings. In case of default. This gives you substantial leverage as you are then seen as serious buyer by the seller of the property. Use the lowest amount of fees to negotiate with the other lenders. 2) Get information on fees. This means your loan not only pay for the property.

02%) in urban areas. 3) AN HFC is unable to tap the rural market due to lack of proper retrieval procedures so whilst 4) The rural market offers a higher rate of return. 2) The healthy of an HFC depend upon its ability to mob up low cost funds. OPPORTUNITIES 1) The housing industry faces a severe shortage of houses. resulting in an increase in risk compo ending this. THREATS The industry faces increased competition as more & more foreign backs & Housing Finance Companies are providing loan facility. 5) The roles of NHB in refinancing & providing regulation of housing finance system. 5) Many legal impendent exist.8 million 2) Dwelling units (65-98%) would be in rural areas & 6.6 millions dwelling units (34. WEEKNESSES 1) The foreclosure rules of court of law such as provision regarding the ownership of not more than one house (in Delhi) binds the industry. The total demand for houses is Expected to touch around 19.SWOT ANALYSIS OF HOUSING FINANCE INDUSTRY STRENGTHS 1) The industry has been witnessing very fast growth rate. it has a higher risk & default rate. .40 million units by the year 2003 of these 12. 3) While the loan facility is backed by the security of property this sector represent a low margin But on the low margin but on the same line low risk segment. 6) The government‟s initiatives to promote the sector & its contribution in uplifting the sector. 5) Tax benefit & other facilities provided on loan repayments. deferring purchase of certain types of property beyond a 6) Certain extent thereby negatively impacting weak mortgage laws. which is 6% growth in the first 2) Quarter of 2002-2003 as against 3-5% growth recorded in the first quarter of 20012002 3) The market faces a high demand curve. The address this 4) Market the ones lies on the HFCS to device bold & innovative alternatives like mortgage Based securities use of method such as door to door collection of installments assessing the Creditworthiness of the prospective client and providing for group securities. thoroughly mismatched by a low supply curve 4) Investment is based in assets that are securities & those that have historically appreciate rapidly.

Reduce their loan outstanding. THREATS 1) Nationalized banks like SBI. 2) Private Banks likes HDFC & standard chartered & Citi Bank with its home credit scheme. Union Bank. Access the surplus finds anytime. Use surplus funds to invest when the right opportunities arises.SWOT ANALYSIS OF HDFC HOME FINANACE STRENGTH 1) 2) 3) 4) 5) Save substantial interest. . WEAKNESS Product is very good but it is mainly suitable for higher income group & is not suitable for the Middle income group OPPORTUNITIES There is ample scope for financing flats & apartments for the salaried class in the higher income Group. Prepay whenever the customer. PNB.

Loans are offered for the purchase of new homes. 1989 with effect from May 3. the name of the company was changed from ICICI Corporation Limited to (ICICI PFS) effective march 22. 1999. Purchase of resale homes and home improvement. ICICI commenced its custodial services business in 1992 & played a pioneering role in the business when it accepted the custodian role for the first ever GDR issue by an Indian corporate (reliance industry Ltd). ICICI Personal Financial Services Limited (ICICI PFS) formerly ICICI credit was one of the first four companies to obtain registration as non banking financial banking companies(NFBc) from the reserve bank of India (RBI)on sep 10. Besides the companies also offers loans for commercial property and loans against existing property.ICICI HOME FINANACE COMPANY LTD Consumer friendly housing finance company HISTORY ICICI home finance company ltd was incorporated on May 28. ICICI home finance has become a 100% subsidiary of ICICI bank Ltd. The loans are offers foe tenors up to 30 years. 1999 as 100% subsidiary of ICICI Personal Financial Services Limited (ICICI PFS). 2002. In view of this reorientation of the business. there was a significant shift in the company‟s operations from leasing and hire purchase to distribution and servicing the all the retail products for ICICI. „know your loan on phone‟ facility and ICICI home search free property brokerage services. has established the relationship will all . OVERVIEW ICICI home loans are at present available to customer in 150 cities/towns across the country. consumer durable finance & another financial products.1939. including two auto loans. 1997 under the new section 45 I A of the RBI act . During the year 1998-1999. ICICI finance company Ltd was set up with objective of providing long term housing loan to individual and corporate. The company has also introduced several customers friendly services such as „door step services‟. 1987 in terms of Housing Financing Companies (NHB) direction. ICICI has a major market share in the segment act as custodian of 41 ADR/GDR issues & in the process. The company has become a critical part of ICICI‟s retail strategy aims at offering a comprehensive range of products &services to retail customers. The company was registered on March 30‟2000 with National Housing Act.

we might reconsider this if we find that there are satisfactory reasons for the delay. However. equity. The moment you decide to buy a home. submission & follow up for various applications by FII‟S/OCB with SEBI/RBI APPLICATION PROCESS OF YOUR HOME LOAN Your search for the perfect home loan ends here at ICICI Bank Home Loans. And. The only condition being that ICICI Bank has Home Loans operations in both the cities. If it is refinancing you are interested in. money market instruments GDR/EURO issues conversion & GDR arbitrage to: 1) Overseas institutional investors like a) FIIS b) OCBS c) OFFSHORE FUNDS d) VENTURE FUNDS 2) Overseas government agencies. you can apply for a home loan even before you have selected the property. At present. the value of asset held in our custody exceeded us 2 billion. .the major overseas institutional investors including foreign institutional investors (FII‟s) & as on the June 30. neither would we charge you extra for this delay. ICICI offers a full range of custodial services for primary and secondary market operation pertaining to debt. 3) Institutional looking for proprietary investment. Should there be a change in your financial status or plans. you can withdraw your sanction within 6 months of approval of your home loan. you can put in your application for a home loan. it is possible within 6 months from the date of purchase of property.1999. And. we are always ready to assist our customers in the event of legitimate problems. The property need not even be in the same city where you are residing. Yes. even before your have found the perfect property. 4) Mutual funds 5) Private investment companies 6) Large corporate 7) High net worth individual As a value added services ICICI custodial services division assist the client in preparation.

without even making a call. age. The various services provided under this is as follow: 1) Maximum cash-saving account 2) Quantum fixed deposits 3) Quantum optima –value added saving account 4) Money plus-current act 5) ATM 6) Treasure chest –cocker facility 7) Power pay roll 8) Retail treasury instruments CORPORATE BANKING MOBILE COMMERSE ICICI bank now brings back account & ICICI credit card to customers fingertips . spouse's income. .with mobile commerce customer can perform a wide range of query –based transaction from their orange tm (Mumbai) & Airtel (DELHI) mobile phone . Repayment capacity takes into consideration factors such as income. This commitment is manifested in services they offer a wide range of account. 1) Access multiple accounts 2) Balance inquiry to the linked account 3) Cheque book request 4) Mini statement –listing of last three transactions5) Request for account statements (by mail or fax) ICICI 1) Attractive IR 2) Door step service from enquiry stage till the final disbursement. Each services offer their customer security.PERSONAL BANKING At ICICI bank they are committed to making banking a pleasure. you can get a home loan suited to your needs. qualifications. A number of factors are taken into account when assessing your repayment capacity. assets. 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. 3) No guarantor required. investment scheme & facilities. 5) Special 100% funding for special properties. stability. FACTORS AFFECTING YOUR LOAN AMOUNT With ICICI Bank Home Loans. liabilities. 4) Can transfer your existing high interest rate loan. number of dependants. flexibility of operations & maximum returns. continuity of occupation and savings history.

However. We require the following documents to sanction your home loan: Sanction Documents Completed application form Photograph Fee Cheque Photo Identity Proof Age Proof Signature Verification Proof Residence Address Proof Document for the Salaried Last 3 months‟ Salary Slip Form 16 Bank Statement for the last 6 months from Salary Account Repayment Track record of existing loans / Loan closure letter Document for the Self-employed Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for business and personal of partners/directors) Bank statement for the last 6 months from operating account Repayment Track record of existing loans / Loan closure letter Board Resolution in case of a company . In case of any co-owners they must necessarily be co-applicants. The additional income shall be included to enhance your loan amount. we ask you for minimal mandatory documents for the sanctioning of your home loan. to keep the process totally hassle-free. transfer charges and stamp duty costs are included. registration charges. offers attractive interest rates and unbeatable benefits to ensure that you get the best deal. If your spouse is earning. when the company looks at the total cost. India‟s leading Home Loans Provider. what you ultimately are entitled to will have to conform within the limits fixed for each loan. Also. However. there are ways by which you can enhance your eligibility. The final amount to be sanctioned will depend on your repayment capacity. Documents required for Home Loan Sanction ICICI Bank Home Loans. Keeping your convenience in consideration. put him/her as a co-applicant.

Proof of existence Office Address Proof  Photo Identity Proof. . Residence Address Proof. Signature Verification Statement for all the main partners / directors.

it could be that having one might enhance your credibility with us. 2) The loan must terminate before or when you twin 65 year of age or before retirement. WHAT YOU GET 0% brokerage on first sale properties access the entire market under our roof site visits to the properties short listed by you. However there are ways by which you can enhance your eligibility. Our affordable home loans can make all the difference to their dreams of owing home. if there are any co owners they must necessarily be co-applicant customer fiancée‟s income can also be considered sanctioning the loan on your combined  Income . . Business is one of them. age. Help the legal documentation. However. FIND THE RIGHT HOME Provide facility for search of free online property. Help in negotiating the best price. Incidentally. stability and continuity of customer employment. the additional income shall be included to enhance the loan amount. If so.  While there is no need for guarantor. registration charges. asset &liabilities. fixed deposits & LIC policies may also help to enhance Eligibility. stamp duty.  If the customer spouse is earning put he/she as a co-applicant.  Customer income.  Also when the company looks at the total cost. transfer charges are also included. A one stop shop for all their Real Estate needs. 3) Customer must be employed or self employed with regular source of income LOAN AMOUNT  A number of factors are taken into account when assessing repayment capacity. HOMELOAN We at ICICI bank understand the value of owing your house. however will be done only after the submit proof of Marriage. Providing additional security like bonds. number of dependents. what customers ultimately are entitled to will have to conform within the limits fixed for each loan.HOME LOAN 1) Customer must be at 21 year of age when the loan is sanctioned. Whichever is earlier.the disbursement of the loan.  The final act to be sanctioned will depend on your repayment capacity. our loan officer would provide customer with positive necessary details. qualification.

 The applicant gets possession of the property depending upon the level of completion of the property. we disburse the loan amount after you identify and select the property or home that you are purchasing and submit the requisite legal documents. requirements & the various options available. While you may be under the impression that the list of documents asked for is rather extensive. tenure of services etc. . saving habits.  If the HFC is satisfy as to the legal & technical aspect of the document then the applicant is called to sign the loan agreement  The loan disbursement schedule is decided by the HFC according to the stage of construction (If property under construction) or a onetime payment is made if property is ready for Possession. While the customer may be under impression that the list of documents asked for it is rather extensive.  After approval an offer letter is given to the applicant by the HFC. Each and every single document asked for will be verified & check to ensure their safety.  The applicant gives the original property title document to the HFC  The HFC scrutinizes the legal & the technical aspects of the original title document. At ICICI Bank Home Loans. of the applicant & approves the loan amount.  The applicant can start paying the EMIs.LISTINGS BELOW ARE THE STEP INVOLVED IN AVAILING OF A HOMELOAN  A person applies for a home loan  The executive meets the applicant & briefs him the entire loan process. DISBURSEMENT Customer loan will be disbursed after you identify & select the property or the home that customer are purchasing and on their submission of the requisite legal documents.  The applicant chooses a housing finance company (HFC) & handover the income  Document to the executive are the income documents are headed over to the HFC for eligibility & approval. This may take some time but the banks want to ensure a clear title and will complete all the legal & technical verification to ensure that they have full right to their home. the loan amount (as warranted by the stage of construction) will be disbursed by ICICI. The 230 a clearance of the sellers or 371 clearance from the appropriate income tax authorities (if applicable) is also needed on satisfactory completion of above.  The HFC verifies the documents & checks the repaying capacity. please note that it is for your own good. on registration of conveyance deed and on the investment of your own contribution. Each and every single document asked for will be verified and checked to ensure your safety. along with list of original title documents that have to hand over to the HFC. The disbursement will be in favor of the builder/seller.

g. Signature Verification and Income documents. the city one reside is among other such factors. salary. the loan amount (as warranted by the stage of construction) will be disbursed by ICICI Bank.1lakh to 1crore depending on the lender. Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents.20% of the loan amount as the down payment. Photograph.This may take some time but we want to ensure a clear title and will complete all the legal and technical verifications to ensure that you have full rights to your home. if applicable) In case of property is owned by a company  Memorandum of Entry  Form 8  NOC AMOUNT This largely depend on a no. On satisfactory completion of the above. For e. on registration of the conveyance deed and on the investment of your own contribution. Identity Proof.profession. Disbursement Documents Property documents (as per P&D for respective states and as asked by empanelled lawyers for individual cases) Facility Agreement Disbursal Request Form Cheque Submission Form – for Pre EMI and EMI cheques ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for EMI / Pre EMI Personal Guarantor‟s Documents (PG Form. If one takes this into amount the additional thousands will definitely put a strain on ones finances . Address the rule of the thumb. But for figure remaining into lakh this could make loads of difference. depending on HFC one have to cough up 15% . this may not be much. of facts like ones age . For smaller amount. an apartment of costing Rs 10 lakh may get 85% financing. it varies between 2. . The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed. so one will have to arrange for remaining Rs 15 lakh.

20 Interest Type Fixed Fixed Fixed Fixed Floating Floating Floating Floating Interest Rate 13. the more one pays in interest. the more one pay in total interest but ones monthly payment will be less. It gives one the opportunity of prepaying ones high cost debt and get a lower cost one.15 15 . One can always prepay ones entire loan amount before it is due. one can take a new loan from another bank/HFC to pay back another loan before its natural tenure. Repayment is in the form of EMI‟s (equated monthly installment). The longer the tenure.10 1-5 1-5 5 . An important requirement of most of the banks/ HFCs is that one pays up the entire loan before one retires. The lender facilitates the shift by paying the outstanding and transferring the asset to other portfolio. Under this facility.25 % 16 % 16 % REFINANCE This is concept that is yet to catch on in the home loan market but is bound to be a major service in the months to come. So its best one checks on this as well. The longer the tenure. The interest rate of ICICI is Tenure . So depending ones earning potential & bank balance one can choose an appropriate tenure.10 10 . INTEREST RATE Without doubt the most important parameter to factor into ones calculations. ICICI offers 15 year loan.75 % 16 % 16 % 16 % 16 % 11. In today‟s falling interest rate scenario one should use this vehicle to lower ones debt payment as much as possible. . with a few lenders offering tenure of 20 years or more. but ones monthly payment will be less.TENURE Generally the maximum tenure of home loans is 15 years. There is a trend to do away with the pre-payment penalty being imposed by some lenders.15 -20 10 -15 5 . The interest rates may vary from institution to institution.

which one is required to pay along with the margin amount are: INTEREST TAX: This is tax payable on the interest paid on a home loan and not the principal. A 0. The ICICI Bank Base Rate (I-Base) has been fixed at 7.5% administration fees and 0. PROCESSING CHARGE It is the fee payable to the lender on applying for a loan.500000 loan would be Rs. a Rs. ICICI BANK ANNOUNCES ITS BASE RATE. PREPAYMENT PENALTIES When the loan is paid back before the nd of the agreed duration a penality is charged by some banks or companies.MISCELLANEOUS CHARGES The interest rates and EMI‟s are not only the cost factor. BENEFITS  Some of our key benefits are: . Never underestimate how much the processing fee and administration fees amount to. 2010.5% processing fee on say. VALID FROM JULY 1. The same will be effective for all its mortgage products from July 1.5000. The loan amount received by you can be less than processing fee. This is sometimes included in the interest rate of the loan. 2. other timesit could be just one fee (either administration or processing but could yet work out to be much more if it is considerably higher at. The various other fees. It is either a fixed amount not linked to the loan or may be a percent of the loan amunt. or may be charged separately as interest tax. which is usually between 1% and 2% of the amount being prepaid.5% or 3%. say.50%. OTHERS It is quite possible that some lends may levy a documentation or consultant charge. 2010 ICICI Bank has announced a shift in the existing benchmark rate from Floating Reference Rate (FRR)/ I-BAR the Base Rate (I-Base). This is the minimum rate that ICICI Bank will charge to its new customers.

        Guidance through out the process Home loan amounts suited to your needs Home Loan tenure upto 20 years Simplified documentation Doorstep delivery of home loan papers Sanction approval without having selected a property. Free Personal Accident Insurance (Terms & Conditions) Insurance options for your home loan at attractive premium .

Indian conglomerates and NRI. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. debit cards. Punjab National Bank boasts of a varied clientele consisting of small and medium industrial units. For an overview of the annual report or the bank profile. mobile banking. The website also provides info on the careers and recruitments at PNB and the exam results. PNB topped the Best Paying Commercial Bank category with an overall rating of 87. Gurgaon. etc. Hyderabad. Death & Funeral Benefits Program. Mumbai. A need for centralized banking system prompted PNB to go computerized and what followed was the establishment of CBS in Punjab National Bank branches in all the leading cities like Delhi. PROFILE OF PNB The profile of the PNB shows superior banking services in corporate. today it offers the largest banking network to the Indian customer.The objectives of the Company are in line with objectives laid down by RBI for the Primary Dealers: vibrant. A branch and ATM locator is also available on the official website of Punjab National Bank. Ahmedabad. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked.PUNJAB NATIONAL BANK INTRODUCTION PNB has over 4500 branches and offices bringing the Punjab National Bank to your doorstep. and other electronic channels such as Internet banking. Nodal and Bangalore. Internet Banking Services are provided to all customers in the CBS branches. industrial and agricultural finance and finance of trade.45% as evaluated by the SSS Retirement. Chandigarh. Pune. Around 2400 offices come under the network of Centralized Banking Solution or CBS. exporters. multi-national companies. Ludhiana. . Jalandhar. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs. liquid and broad based. Kolkata. The careers at nationalized banks like PNB are the most sought after one and candidates are selected on the basis of their exam result. Chennai. the site can be resourceful. personal and international banking.

has announced that it has completed 100% core banking implementation at all its 4604 branches and extension counters through the Finacle Universal Banking Solution from Infosys. PNB was fully privatized. The completion of sale is expected to speed up the development of PNB‟s franchise and operational competitiveness. The privatization started in 1989 when 30 per cent of its shares were offered to the public and it was listed on the stock exchange. standardize branch processes. PNB sought to not only achieve automation. Completed in November 2008. but also centralize operations. the Foreign Offices division. with Lahore as its head office. It was nationalized in 1969 along with 13 other major commercial banks. In August 2005. The bold and innovative thought culminated into the CBS architecture with Finacle application on Oracle Database and Sun . privatization continued with a second public offering of its shares. and scalable database platform from Oracle and innovative servers from Sun Microsystems With an increasingly dynamic business and regulatory environment. on Sun infrastructure and the Oracle Database setting a significant milestone for themselves and a new benchmark for the Indian banking industry.In 1992. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings . the bank implemented industryleading Finacle core banking solution from Infosys across its operations running a flexible. reduce overall costs. achieve high scalability for future business growth.77 per share bid offered by a competitor and purchased the shares owned by the government. PNB RECENT ACHIEVEMENTS AND MILESTONES Punjab National Bank (PNB). the Foreign Department and the International Services division. PNB became the first Philippine bank to reach P100 billion in assets. Later that year. 4 months ahead of schedule. The visionary zeal and the futuristic view of the Bank‟s top management in the year 2007-2008 incubated the idea of introduction of a Centralised Banking solution. and at the same time. Today. The Lucio Tan Group exercised its right to match the P 43. State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. Today it is the second largest public sector bank in India.Ensure the development of underwriting and market making capabilities for Government Securities enhance liquidity and turnover and encourage voluntary holding of Government securities amongst a wider investor base PNB HISTORY Punjab National Bank of India was established by Lala Lajpat Rai in the pre-independence India in 1895 in Punjab. provide flexibility of creating innovative banking products to its lines of business. The joint sale by the Philippine government and the Lucio Tan Group of the 67% stake in PNB was completed within the third quarter of 2005.the Domestic division.

PNB Ghar Sudhar Yojana home loans are offered for up gradation. gain better business insight. With seamless integration of delivery channels such as ATM and internet banking solutions. business intelligence and content management applications. Finacle core banking platform also provides the bank with exceptional agility for product innovation and improved flexibility of operations. In case of joint application. data warehousing. The solution‟s scalability has also enabled the bank‟s scalability to be the best in the country with the number of peak transactions at 3. life Insurance cover is also available on payment of one time premium which can also be financed by the Bank.     . The loan repayment is in Equated Monthly Installments (EMI) over a maximum period of 20 years. and quickly and confidently adapt to an increasingly changing competitive environment.5 million. security and scalability as well as performance requirements to service 3. the solution‟s future proof technology and powerful capabilities.20 With secure. With Finacle‟s agile and future proof technology.500 concurrent users. income of borrowers /co-borrowers is clubbed together for calculation of loan eligibility. renovation or repair of house/flat. management features. PNB is able to provide 24X7 services to customers at a reduced transaction cost. friendly and most convenient home loans for: Construction or purchase of house/ flat. Purchase of house/ flat on First Power of Attorney basis from the original allottee Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat Special Feature. The anywhere anytime banking facility will enable the bank to offer products for every segment of the customer. Oracle customers can tackle the most demanding transaction processing.50000 and maximum loan amount depends on the repayment capacity of the borrower. PRODUCTS PNB Apna Ghar Yojana home loans are meant for construction or for acquisition/purchase of house/flats. In addition. highly available and scalable grids of low-cost servers and storage. The minimum loan amount would be Rs. PNB‟s choice of the Oracle Database has provided the bank‟s IT infrastructure with robustness. the bank today has over 22. internal and external repairs. It includes among others.” REGULAR HOUSING FINANCE SCHEME FOR PUBLIC PNB reaches out to you with fast. roofing. introduction of new and innovative products and visibility of business.5 million transactions and 22500 concurrent users – a significant achievement in the Indian banking industry. the Oracle Database will help PNB take control of its enterprise information.hardware platform with Solaris Operating System. water proofing. The 100% implementation of Finacle Core Banking Solution shall enable PNB to further reduce operational costs and revenue leakage while improving productivity of branches. India is a strategic market for Finacle and we look forward to closely collaborating with Punjab National Bank for their future growth plans. PNB long-standing and progressive partnership also highlights Finacle‟s leadership in large scale banking transformation.To cover the loan outstanding.

Loan is available maximum up to Rs. The loan amount ranges from a minimum of Rs 50.75% of the estimated cost subject to maximum of Rs.flooring. Proof of income 3. Guarantor . Salary slips & form 16 8. Bank statement or Pass Book where salary or income is credited. Proof of identity 2. Estimate of construction. electrical. 10. 20 lacs for purchase of Land/ Plot. Documents of property. Borrower's minimum contribution will be 25% of the estimated cost of repairs/renovations INDIVIDUAL For construction/purchase of house/flat: . Photos 7. Proof of residence 4. For carrying out repairs/ renovations/ additions/ alterations: . 2 lacs for furnishing PRODUCT RANGE OF COMPANY/INDUSTRY: The products and services provided by the PNB are in various fields. 5. Income tax return last 3 years along with balance sheets. 20 lacs. Education Certificate 6. woodwork etc.000 to a maximum of Rs. 12. Loan is available up to Rs. 11. 9. DOCUMENTS NEEDED 1. Existing home loan borrower can also apply provided their loan account is regular and no IR irregularity persist. Assets liabilities statements.75% of the cost of construction of house or purchase of house/flat. Cost of car parking up to the maximum extent of 5% of the cost of flat/house can also be included in the cost of the project. such as: • NRI services • International banking • Corporate banking • Agricultural banking • International banking ELIGIBILITY Age of the applicant must be less than 60 years. 1000000.

20 lacs. loan can be granted on the basis of power of attorney basis from original allotee where DDA/PUDA/HUDA permit conversion of leasehold into freehold property otherwise advance is not permitted against plot purchased on Power of Attorney basis. For carrying out repairs/renovation/additions/alternation: . In case of leasehold. TENURE: You can repay the loan over a maximum period of 25 years under both FRHL and ARHL in SBI . Repayment will not ordinarily extend beyond your age of retirement (if you are employed) or on your reaching 65 years of age. 2 lacs for furnishing CHARGES 2% Transfer Charges Pre payment charges Balance (incase of refinance) 2% Nil Part-payment Charges Switching (Fixed to Floating or vice-a-versa) Charges Nil SPEED OF SANCTION OF LOAN The loan will be sanctioned within 7 working days. EXTENT OF LOAN For construction/purchased of house/flat 75% of the cost of construction or purchase of house/flat. 20 lacs for purchase of land/plot Loan is available maximum up to Rs. Loan up to Rs.75% of the estimated cost subject to maximum of Rs. whichever is earlier. .FREEHOLD AND LEASEHOLD PROPERTY The loan can be granted both for freehold and leasehold property.

Repayment of loan for repair/ renovation/ addition/alteration has.75 9.2006 DOCUMENTATION CHARGES Rs.50 For repayment period Floating Option for loans(Above 20 lac) 9.75 10.00 9. 20. Minimum 24 advance cheque should be obtained as and when. 6 cheques remain. 2.000/For loans above Rs. 300 lacs =0.75 upto 25 yrs. 1350 + Service Tax UPFRONT FEE For loans up to Rs.50 9.25 10.50% of the loan amount with a cap of Rs. 23 cheques should be of the amount equal to the balance. The interest rate can be fixed or floating Option can be changed from fixed to floating and vice versa with flat charges of 2% fee on balance outstanding.00 8. fresh lot to be obtained out of 24.RATE OF INTEREST Floating Fixed Option Fixed Option for Option for for loans(Upto 20 loans(Upto loans(Above 20 lac) 20 lac) lac) 9. Loan is to be repaid in EMI within a period of 25 years or before the borrower attains the age of 65 years. 300 lacs = 0.50 9.25 10.25 9.75 11. Fixed interest rate be reset after a block of 5 year in respect of loans disbursed on or after 1.00 10. . however been restricted to 10 years.08.90% of the loan amount REPAYMENT 1. 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.00 years iii) Above 10 & upto 20 10.00 i) Upto 5 years ii) Above 5 & upto 10 10.50 years iv) Above 20 yrs & 10. Father/Mother can also be made co-borrower in cases property is in single name of his /her son and also clubbing of their income is permitted for determining eligibility criteria.

IMPORTANT CONDITIONS LOAN CANNOT BE GRANTED:  For construction in Un-authorized colonies.PAYMENT CHARGES  Nil. 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. PRE. borrower and the Bank In case of purchase of house/ flat on first power of attorney. / PSU Bonds etc.In cases where the borrower shifts to other bank within 30 days from the date of issuance of circular for upward revision in the rate of interest to be charged in his account or change in other terms of sanction. has to be provided FEATURES Loan can be sanctioned by branch/hub near to the present place of work/posting /residence of the borrower.  If property is to be used for commercial purpose. NSCs. Loan can be sanctioned even if property is in the name of wife/parents provided that the owner is made co-borrower. b. Loan can be granted for 2nd house in the same city. For house/flat under construction.In cases where the loans are prepaid by the borrower from their own sources  Nil. Securities.SECURITY Mortgage of property for which finance is being given In case of purchase of house/ flat from housing board/ society where mortgage cannot be created immediately. Loan can be granted for purchase of house for rental purpose For take over.  Without approved Map.  2 % . For outright purchase of house/flat. IVPs. . the loan amount will be paid in lump sum to the vendor. the loan amount will be dispersed in stages as per progress of construction/demand by selling agency.In cases where the account is taken over by some other Bank/ Financial institutions by way of a ailment of loan from such bank/ financial Inst DISBURSEMENT FOR HOME LOAN a. permission of higher authority is not required. a tripartite agreement shall be executed amongst the housing board/ society. KVPs.


INTRODUCTION State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India. The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance. The eight banking subsidiaries are: State Bank of Bikaner and Jaipur (SBBJ),State Bank of Hyderabad (SBH).State Bank of India (SBI),State Bank of 13 Indore (SBIR),State Bank of Mysore (SBM),State Bank of Patiala (SBP),State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. SBI's International Banking Group delivers the full range of crossborder finance solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division. PROFILE The SBI‟s powerful corporate banking formation deploys multiple channels to deliver integrated solutions for all financial challenges faced by the corporate universe. The Corporate Banking Group and the National Banking Group are the primary delivery channels for corporate banking products. The Corporate Banking Group consists of dedicated Strategic Business Units that cater exclusively to specific client groups or specialize in particular product clusters. Foremost among these a specialized group is the Corporate Accounts Group (CAG), focusing on the prime corporate and institutional clients of the country‟s biggest business centers. The others are the Project Finance unit and the Leasing unit. The National Banking Group also delivers the entire spectrum of corporate banking products to other corporate clients, on a nationwide platform. The bank is also looking at opportunities to grow in size in India as well as internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings. Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In a recently concluded mass internal communication programme termed „Parivartan‟ the Bank rolled out over 3300 two day workshops across the country and covered over 130,000 employees in a period of

100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme. HISTORY The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial Bank of India.
Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division.

SBI RECENT ACHIVEMENTS AND MILESTONES: AWARDS: SBI has been the proud recipient of the ICRA Online Award - 8 times, CNBC TV – 18, Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for our schemes. SBI Card reaches three million milestones: SBI Card, a joint venture between State Bank of India and GE Money, announced yet another landmark achievement of crossing the three million cardholders-marks. Roopam Asthana, CEO-SBI Card, said, "This milestone is even more remarkable as we have added one million cardholders in just ten months. Our objective is to accelerate the pace of growth by extending the benefits to a broader range of consumers in Tier II cities, along with improved value propositions for the urban affluent customers." SBI Card recently signed up Indian cricketer Yuvraj Singh as its brand ambassador. SBI joins Chinese bank to touch 10,000 branches: Public sector State Bank of India on Sunday became only the second bank in the world to have 10,000 branches when Union Finance Minister P Chidambaram inaugurated its latest branch here. Speaking on the occasion, Chidambaram said China's ICBC Bank was the other bank to have 10,000 branches. Opening 10,000 branches was a great feat. "It is not an easy milestone though the SBI was the bank of the government and Indian people even before other banks were nationalised," he said. People all over the world, including the Chinese, would now know about this small village where the 10000th branch of the SBI had been opened, he said adding they would be amazed by the bank's growth. The bank should be proud of the achievement he said and wished that the bank opened one lakh branches. The

Minister said out of the over 100 crore people, seventy 75 per cent did not have any type of insurance. Similarly, 50 per cent of the 11 crore farmers did not have bank account. Banks should go to the people and enroll them as account holders. 'That is what economists say is financial inclusion,' he said. Main SBI Home Loan Schemes  SBI Realty : Purchase of plot of land  SBI Optima : Loan to existing home loan borrowers  SBI Green Home Loan : For homes that fight against the adverse climate change, SBI offers 0.25% concession in interest rate and waiver of processing fees  SBI Flexi : Combination of floating and fixed interest rate, in a pre determined ratio  NRI Home Loans : Loans for NRIs and PIOs  SBI Freedom : Pledging other financial security than mortgaging the house  SBI Max Gain : Operate your home loan account like your SB or Current Account PRODUCT RANGE OF COMPANY/INDUSTRY: The products and services provided by the SBI are in various fields, such as: • Banking services • NRI services • International banking • Corporate banking • Agricultural banking • International banking SBI HOUSING LOAN Features  SBI Home Loan provides no cap on maximum loan amount for the purchase/construction of house/flat.  There is an option to club the income of the applicant's spouse and children to compute the eligible loan amount.  The bank provides free personal accident insurance cover.  A complimentary international ATM cum Debit card is also provided by SBI.  On the spot "in principle" approval is a special provision for the applicant.  If all the required documents are submitted by the applicant, SBI Home Loan is sanctioned within 6 days of the date of submission.  The applicant can also consider SBI's Home Loan as a Term Loan or as an Overdraft facility, in case he/she wants to save on interest and maximize gains.  SBI Home Loan also provides free personal accident insurance cover up to Rs 40 Lakhs.  Repayment is permitted up to 70 years of age, which is an added advantage of SBI Home Loan.

The applicant should consist of sufficient. Non Encumbrance Certificate. Copy of Approved Plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months . SBI Home Plus 8. It is the maximum age limit. SBI Green Home Loan 7. SBI MY HOME CAMPAIGN PRODUCTS 'SBI-Flexi' Home Loans are designed to enable borrowers to hedge their Home Loan against unfavorable movement in interest rates and gives the customers a one time irrevocable option to choose one of the three customized combinations of fixed and floating interest rates.SCHEMES PROVIDED BY SBI The Most Preferred Home Loan provider SBI Bank offers a Home Loan with Attractive Interest Rates with Latest Schemes and Benefits. on the date of the sanction of the loan. SBI Home Line 9.the applicant can make use of his/her PAN Card/Voter ID/ Passport/Driving License. Schemes Are:1. DOCUMENTS Completed Application Form with one Passport Size Photograph Identity Proof . SBI Easy Home Loan 2. Agreement of Sale. SBI Happy Home Loans 5. SBI Life Style Loan 6.the applicant can make use of his/her Recent Telephone Bill/ Electricity Bill/Property tax receipt/Passport/Voters ID Proof of business address in respect of businesspersons/ industrialists Sale Deed. ELIGIBILITY The minimum age of the applicant is 18 years. The maximum age limit for a Home Loan applicant is 70 years. SBI also provides a Housing loan with different schemes. Letter of Allotment. Residence Proof . 'SBI-Freedom' Home Loans are customized for high net worth individuals and offer benefits such as 100 per cent finance of the project and no mortgage of the property. regular and continuous source of income for repaying the loan. within which the loan should be fully repaid. for the purpose. provided the individual could show liquid securities such as LIC policies or NSCs. SBI Advantage Home Loan 3. Land/Building Tax paid receipt etc. SBI Housing Finance Scheme 4.

2.00.75%) Year 1 .25% floating.INTEREST RATE (SBAR is currently 11.1. whichever is earlier. .8% fixed Year 2 & 3 .For loans up to 50 lakhs. 9.) 5.a.) 5.9% fixed Year 4 onwards . 5) Last 3 years profit/loss & balance sheet 6) Last 6 months bank statements 7) Processing fee cheque Documentation Other Products from SBI (State bank of India) 1) 2) 3) 4) SBI Personal Loan SBI Card SBI Home Loan SBI Housing Loan LOAN TENURE You can repay the loan over a maximum period of 25 years under both FRHL and ARHL in SBI .000 .75% floating Eligibility Criteria & Documentation required for SBI Home Loan Salaried Age Income Loan Offered Tenure Current Experience Amount 21years to 60years Rs. For loan amount over 50 lakhs.2. Repayment will not ordinarily extend beyond your age of retirement (if you are employed) or on your reaching 65 years of age. (p.a.00000 5years-20years 3years 1) Application form with photograph 2) Identity & residence proof 3) Education qualifications certificate & proof of business existence 4) Business profile. 9.000 .00.000 (p.00000 5years-20years 2years 1) Application form with photograph 2) Identity & residence proof 3) Last 3 months salary slip 4) Form 16 5) Last 6 months bank salaried credit statements 6) Processing fee cheque Self employed 21years to 70years Rs.00.00.

2% on principal amount prepaid . In other cases. 000 Rs. 7000 Rs.8000 Rs.20. In other cases. 000 PREPAYMENT CHARGES If paid from own source. 5000 Rs.2% on principal amount prepaid LATE PAYMENT CHARGES If paid from own source. 1000 Rs.Nil.10.Nil. 2000 Rs.PROCESSING FEE FEES Upto 5 lakh 5lakh-10lakh 10lakh-20lakh 20lakh-50lakh 50lakh-1crore 1crore-5crore Above 5 crore RUPEES Rs.

3) In May 18.. They empirically investigate whether funding constraints impact the small-business lending decision by rural community banks. The first attempt in this regard was the National Housing Policy (NHP). stabilize the Federal Home Loan Banks.REVIEW OF LITERATURE Ben R. are Targeted Subsidies Necessary? The Gramm-Leach-Bliley Act of 1999 amended the lending authority of the Federal Home Loan Banks to include advances secured by small enterprise loans of community financial institutions. the Government of India has been continuously trying to strengthen the housing sector by introducing various housing loan schemes for rural and urban population. Results suggest that after controlling for the mix of loan types. The paper is based on the case study of LIC Housing Finance Ltd. majority of the population lives in slums and shabby shelters in rural areas. Finally. The data reject the hypothesis that access to increased funds will increase the amount of small-business loans made by community banks. from 1995-96 to 2004-05 by working out relevant ratios in terms of percentages and the compound annual growth rates. i. From the last decade. always remains on the top priority of any person. for the salaried section. credit risk factors. and address a market failure in rural markets for small enterprise loans. which analyzes regionwise disbursements of individual house loans. Craig had studied about the Federal Home Loan Bank Lending to Community Banks. The main objective of the bank is to promote and establish the housing financial institutions in the country as well as to provide refinance facilities to housing finance corporations and scheduled commercial banks. (2) changes in the risk profile of borrowers. their portfolio amounts and the defaults for the last ten years. government and society at large. Moreover. which was introduced in 1988. though indirect. Here we assess three possible explanations for the observed increase in 2005 over 2004: (1) changes in lender business practices. 2007 Michael LaCour-Little had studied about the Economic Factors Affecting Home Mortgage Disclosure Act Reporting. Housing. Three possible reasons for the extension of this selective credit subsidy to community banks and thrifts are examined. and the yield curve. the tax rebates on housing loans have been introduced. given a model of the factors affecting results for 2004-2005. as one of the three basic needs of life. wholesale originations did significantly increase.. The National Housing Bank (NHB) was set up in 1988 as an apex institution for housing finance and a wholly-owned subsidiary of Reserve Bank of India (RBI). The public release of the 2004-2005 Home Mortgage Disclosure Act data raised a number of questions given the increase in the number and percentage of higher-priced home mortgage loans and continued differentials across demographic groups.e. there was no statistically significant increase in reportable volume for loans originated directly by lenders during 2005. A relevant chart has also been prepared to highlight the results. Specifically. we predict that 2006 results will . and (3) changes in the yield curve environment. 2) In December 2006 Fulbag Singh and Reema Sharma had studied about the housing Finance in India. including the need to: subsidize community depository institutions. economy. In India. they estimate two empirical models of small-business lending by community banks.

2001 Joshua Rosner had studied about the Housing in the New Millennium: A Home without Equity is Just a Rental with Debt. Based on our analysis. Recently targeted populations that have historically been denied homeownership opportunities have offered the mortgage industry novel hurdles to overcome. Such policy initiatives may for a time distort the relevancy of delinquency and foreclosure statistics. S&L assets consist largely of long-term loans. a protracted housing slowdown could eventually cause modifications to become uneconomic and. Industry participants in combination with eased regulatory standards and the support of the GSEs (Government Sponsored Enterprises) have overcome many of them. it may be possible for lenders to further ease credit standards and more fully exploit less penetrated markets. a relatively new method of loan forgiveness can temporarily alter the perception of credit health in the housing sector. consumer and the reduction of home equity available in the home. we believe there are elements in place for the housing sector to continue to experience growth well above GDP. Whereas banks assets consist of short-term loans. Proposed solutions are discussed in the context of the industry as it currently stands.S. Despite the increasingly more difficult economic environment. These impacts would be exacerbated by the increasing debt burden of the U. However. we believe there are risks that can materially distort the growth prospects of the sector. it is likely that the home purchase boom of the past decade will continue unabated. Borde had studied about the “Is the Savings and Loan Industry Facing Extinction?” This article tells about the saving and loan crisis. However. the negative impact on the housing market could be quite large. thus. With a somewhat similar liability structure to that of banks (mainly short-term deposits). Such easing includes: * The drastic reduction of minimum down payment levels from 20% to 0% * A focused effort to target the "low income" borrower * The reduction in private mortgage insurance requirements on high loan to value mortgages * The increasing use of software to streamline the origination process and modify/recast delinquent loans in order to keep them classified as "current" * Changes in the appraisal process which has led to widespread over appraisal/over-valuation problems If these trends remain in place. housing/mortgage sector over the next several years. which can lead to lower profits when interest rates rise. credit quality statistics . These impacts come in several forms. 4) In May 1991 Stephen F. the asset structure of S&Ls is quite different. a decline in real estate prices and increased foreclosure expenses. In an effort to keep homeowners in the home and reduce foreclosure expenses. 5) In June 29. in the absence of adequate hedging measures. we believe the risk of credit relaxation and leverage can't be ignored. Importantly.continue to show an increase in the percentage of loans that are higher priced when final numbers are released in September 2007. it appears that a large portion of the housing sector's growth in the 1990's came from the easing of the credit underwriting process.S. such as home ownership mortgages. holders of mortgage assets are currently recasting or modifying troubled loans. If there is an economic disruption that causes a marked rise in unemployment. Although we have yet to see any materially negative consequences of the relaxation of credit standards. Therefore. Specifically. They studied about the prospects of the U. They include a reduction in the demand for homeownership. S&Ls are more vulnerable to interest rate risk.

and third-party interventions such as delinquency housing counseling. likelihood of borrowing. One function of this brief essay is to identify an existing rough framework for managing delinquency. Although more empirical research is needed. and community development. 6) In December 2002 Melissa B. however. transparent. to generate positive social-psychological states. positive social psychological states. a change in housing consumption affects the likelihood of borrowing elastically much more . and housing consumption are not elastic. They studied that Public investment in and promotion of homeownership and the home mortgage market often relies on three justifications to supplement shelter goals: to build household wealth and economic self-sufficiency. humane. some situations . On the other hand. and . this essay starts the process of analyzing mortgage delinquency management tools in the proposed fashion. Because those ends are not inexorably linked to ownership generally or owning a particular home. better origination practices cannot eliminate the need for delinquency management. and predictable strategies for home exit as well as for home retention. leveraged.exited. We estimate the wealth effect on private mortgage debt as well as housing consumption by applying a model where mortgage debt demand is derived from house purchase decisions and is determined jointly with housing consumption. it is tempting to focus on its impact on mortgage credit cost and access or on the absolute number of homes temporarily saved. and sometimes undermine them. Jacoby had studied about the Home Ownership Risk beyond a Sub prime Crisis: The Role of Delinquency Management. and to develop stable neighborhoods and communities. Legal scholarship should no longer discuss mortgage enforcement primarily in terms of foreclosure law and instead should include other debtorcreditor laws such as bankruptcy. Japanese households accumulate wealth for down payments at a high rate. maintained.would likely become relevant once again. In terms of analyzing this framework. a system of delinquency management that honors these objectives should strive to provide fair. Homeownership and mortgage obligations do not inherently further these objectives. but my proposed analysis is based on whether the system honors and furthers the goals of wealth building. Given that high leverage or trigger events such as job loss and medical problems play significant roles in mortgage delinquency independent of loan terms. Wealth effects on private mortgage debt. current wealth plays an important role in home acquisition as public loans whose direct mortgage lending is a strong support for home purchasers. I contend that a system of mortgage delinquency management should be an enduring component of housing policy. The virtuous circle of increasing homeownership due to greater leverage has the potential to become a vicious cycle of lower home prices due to an accelerating rate of foreclosures. Whatever their merit. 7) In 1999 Yoko Moriizumi had studied about the Current Wealth. The most visible triggers of the recent surge in sub prime delinquency have produced calls for emergency foreclosure avoidance interventions (as well as front-end regulatory fixes). We use a simultaneous equation Tobit estimation method. Furtherance of housing and household policy objectives hinges in part on the conditions under which homeownership is obtained. Housing Purchase and Private Housing Loan Demand in Japan. industry loss mitigation efforts.

They studied about the Loan commitments increase a bank's risk by obligating it to issue future loans under terms that it might otherwise refuse.than the private mortgage amount of borrowers. Therefore. They studied that this paper investigates the relationship between bankruptcy exemptions and the availability of credit for mortgage and home improvement loans. 9) Sumit Agarwal. we find a positive relationship between mortgage rate volatility and home mortgage loans. Firms with higher growth commit to larger lines of credit and have a higher rate of line utilization. Avery and Allen N. Housing and private mortgage markets fluctuate very closely with the number of participants in the mortgage market. We avoid this problem by using a unique proprietary data set from a large financial institution of loan commitments made to 712 privately-held firms. which have a wide menu of financing options. suggesting that commitments generate little risk or that this risk is offset by the selection of safer borrowers. the number of housing starts is linked strongly to the private mortgage market. most loans are in the form of credit lines. Berger had studied about the Loan commitments and bank risk exposure. households disinvest in government securities and invest in real assets. moral hazard and adverse selection problems potentially may result in these contracts being rationed or sorted. They studied that The U. Depending on the relative risks of the borrowers who do and do not receive commitments. Driscoll had studied about the Loan commitments and private firms. 11) In november2000 Michelle J. We develop a combined model of debtors' decisions to file for bankruptcy and to default on their mortgages and show that the theory predicts positive relationships between both the homestead and personal property exemption levels and the probability of borrowers being denied mortgage (secured) and home improvement . They studied that. commitment loans could be safer or riskier on average than other loans.Souphala Chomsisengphet and John C. 10) Faik Koray and Eric T. Our findings are consistent with their predictions. 8) Robert B. Lin had studied about the Bankruptcy and the Market for Mortgage and Home Improvement Loans. Almost all firms convert unused credit line portions into spot loans and take out new lines. We test Martin and Santomero's (1997) model. Firms experiencing more uncertainty in their funding needs commit to smaller credit lines. Firms facing higher rates and fees have smaller credit lines. Further investigation indicates that this is due to volatility in the bond market.S. White and Emily Y. Contrary to common wisdom. economy has experienced substantial fluctuations in real and nominal interest rates since the 1970s. which yield a positive relationship between mortgage rate volatility and home mortgage loans. Hillebrand had studied about the Interest Rate Volatility and Home Mortgage Loans. in which lines give firms the speed and flexibility to pursue investment opportunities. In times of high interest volatility. Empirical studies of line demand have been complicated by their use of data on publicly traded firms. However. This paper investigates empirically the relationship between home mortgage loans and volatility in mortgage rates for the period 1971:02 through 2003:03. the empirical results indicate that commitment loans tend to have slightly better than average performance.

generally drive product choice.S. fully one-half of U. I identify the factors associated with conventional conforming.and Moderate-Income Households. The data does not support the view that homeowners with multiple liens are less risky and should therefore be allowed to avoid PMI. including pricing.8% in survey year 2001 to 21. 13) In August 2007 Michael LaCour-Little had studied about the Home Purchase Mortgage Preferences of Low. installment loans. Data from the SCF was used to compare five financial characteristics (credit card debt. FHA. and liquid assets) for multiple-lien versus single-lien households. This article employs recent mortgage origination data to focus on the revealed preferences of low. Sharp declines in household income and real estate values resulted in soaring mortgage delinquency rates. Empirical results show that individual credit characteristics and financial factors. consumer credit. Multiple-mortgage financing packages as a percent of newly originated mortgages (mortgages originated within the previous five years) went from 14. 1934. They studied about the impact of increased use of home equity lines and decreased private mortgage insurance (PMI) on mortgage markets.and moderate-income (LMI) households in home purchase mortgage choice. These relationships also hold when we introduce state fixed effects into the model. Results also indicate that targeted conventional programs effectively compete with government-insured products in the LMI segment. history.S. as of January 1. 14) In 24 October 2008 David C. They studied about the Great Depression was the worst macroeconomic collapse in U. This change in lending and borrowing behavior is not a sub prime market problem. The reduced use of PMI and the increased use of home equity loans increased mortgage holder risk in several different ways and was a contributing factor to the 2008 mortgage and financial crisis. . yet variation persists across income groups. 12) In October 14. Housing policy in the United States has long supported homeownership. Wheelock had studied about the Government Response to Home Mortgage Distress: Lessons from the Great. home mortgages were delinquent and. Applicants for mortgages are 2 percentage points more likely to be turned down for mortgages and 5 percentage points more likely to be turned down for home improvement loans if they live in states with unlimited rather than low homestead exemptions. We test these predictions empirically and find strong and statistically significant support when evidence from cross-state variation in bankruptcy exemption levels is used. Further comparisons reveal a large decrease in the proportion of mortgages with PMI with the largest decreases in PMI coverage occurring among newly originated multiple-lien packages. The multiple-mortgage percentage for seasoned mortgages (mortgages originated more than five years prior to the origination date) also increased by a modest amount. 2008 David P. The comparisons suggest single-lien households tend to have slightly stronger financial variables than multiple-lien homeowners equity.5% in survey year 2007. The data confirms that in the years leading up to the mortgage crisis home buyers and lenders have aggressively used piggyback loans to avoid taking out PMI on first mortgages. Bernstein had studied about the Home Equity Loans and Private Mortgage Insurance: Recent Trends & Potential Implications. nonprime and specially targeted programs. According to one estimate. with some variation evident when loans are originated through brokers.

the flattening of the yield curve explains a significant amount of the increase in rate spread reportable loans. amortizing mortgages. cohort effects and calendar time effects. some 1000 home loans were foreclosed every business day. Although moratoria reduced farm foreclosure rates in the short run.affects the age-profile of home ownership. Many states imposed moratoria on both farm and nonfarm residential mortgage foreclosures. The Great Depression experience suggests how foreclosures might be reduced during the present crisis. They explore the determinants of the international pattern of home ownership using the Luxembourg Income Study (LIS). Following the Oaxaca (1973). the HOLC acquired and refinanced one million delinquent loans totaling $3. The federal government took a number of steps to relieve residential mortgage distress and to promote the recovery and growth of the national mortgage market. and discusses actions taken by state governments and the federal government to reduce mortgage foreclosures and restore the functioning of the mortgage market. 1 2009 Vincent W. we find strong evidence that the availability of mortgage finance . This is the case for both prime and sub prime originations. The Home Owners Loan Corporation (HOLC) was created in 1933 to purchase and refinance delinquent home loans as long-term. country effects. they appear to have also reduced the supply of loans and made credit more expensive for subsequent borrowers. merging data on more than 400. Yao and Eric Rosenblatt and Michael LaCour-Little had studied about the unique paired loan dataset containing information on multiple conventional conforming mortgage loans of households to examine home equity extraction decisions over the period 2000-2006. 16) In 10 December 2007 Irina Paley and Chau Do had studied about the Explaining the Growth of Higher-Priced Loans in HMDA: A Decomposition Approach. this study identifies the fraction of the increase due to the flattening of the yield curve. and about 20 percent of those with an outstanding mortgage. Even after controlling for changes in borrower risk characteristics. The main question addressed is how much households borrow when . a collection of microeconomic data on fourteen OECD countries. the cross-section is repeated over time and includes several demographic variables carefully matched between the different surveys. 15) In March 2001 Tullio Jappelli and Maria Concetta Chiuri had studied about the Financial Market Imperfections and Home Ownership: A Comparative Study. In most. This paper documents the increase in residential mortgage distress during the Depression. The HOLC refinanced loans on some 10 percent of all nonfarm. After controlling for demographic characteristics. and Fairlie (2005) decomposition techniques. especially at the young end. Between 1933 and 1936. This allows us to construct a truly unique international dataset. The results have important implications for the debate on the relationship between saving and growth. owner-occupied dwellings in the United States. The period 20042005 showed a significant increase in Home Mortgage Disclosure Act (HMDA) rate spread measured by outstanding mortgage loans and down payment ratios .on average. the findings reveal that during 2004-2006.1 billion. Blinder (1973).000 households with aggregate panel data on mortgage loans and down payment ratios. 17) In Feb.

costing and market factors that appropriately explain mortgage pricing differentials.S. Pryce and Patric H. We also provide estimates of the marginal effect of certain borrower characteristics. 20) In 1 NOVEMBER 2007 Marsha Courchane studied about The Pricing of Home Mortgage Loans to Minority Borrowers: How Much of the APR Differential.refinancing their current mortgage debt in a cash-out transaction. our analysis suggests that little of the aggregate differences in APRs paid by minority and non-minority borrowers are appropriately attributed to differential treatment. Results contribute both to the literature on refinancing behavior and the role of house price appreciation in providing funds that may be used for consumer spending or other purposes." This may explain why pricing discrepancies are not competed away. . Measuring the financing response to a legislative change is complicated by the fact that lenders restrict mortgage debt to the value of the house (or slightly less) being financed. and annual percentage rate ("APR") conditional on getting either a sub prime or prime mortgage. The greater the shift. The public releases of the 2004 and 2005 HMDA data have engendered a lively debate over the pricing of mortgage credit and its implications regarding the treatment of minority mortgage borrowers. Thus. is attributable to observable differences in underwriting.J. 19) In July 2005 Gwilym B. a 40 percent decline). Mortgage interest tax deductibility is needed to treat debt and equity financing of homes equally. important determinants of loan origination market outcomes remain to be identified. Borrowers overwhelmingly issue in their natural home market and bank portfolios display significant home "bias. Countries that limit deductibility create a debt tax penalty that presumably leads households to shift from debt toward equity financing. other things equal. but the fundamental causes of the discrepancies remain a puzzle. Although any potential discrimination is problematic and should be addressed. 18) In august2004 Mark Carey and Greg Nini had studied about the Corporate Loan Market Globally Integrated? A Pricing Puzzle. Differences in borrower.S. Taking this restriction into account reduces the estimated financing response by 20 percent (a 32 percent decline in debt vs. and corporate financing costs differ in Europe and the U. the less is the tax revenue raised by the limitation and smaller is its negative impact on housing demand. home "bias" appears to be material for pricing. Hendershott had studied about the Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage Interest.000 newly originated UK loans from the late 1990s. We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the U. We find that up to 90 percent of the African American APR gap. and 85 percent of the Hispanic APR gap.. The estimation is based on 86. We provide a unique empirical assessment of this issue by using aggregated proprietary data provided to us by lenders and an endogenous switching regression model to estimate the probability of taking out a sub prime mortgage. loan and lender characteristics associated with equilibrium mechanisms suggested in the literature do not appear to explain the phenomenon.

. likelihood of delinquency is greater for borrowers with low credit history scores and those with high ratios of housing expense to income. This study examines the performance of home purchase loans originated by a major depository institution in Philadelphia under a flexible lending program between 1988 and 1994. We examine long-term delinquency in relation to neighborhood housing market conditions. and when the property is unusually expensive for the neighborhood where it is located. Also. Calemhad studied about the Community Reinvestment and Credit Risk: Evidence from an Affordable Home Loan Program. Wachter and Paul S. We find that likelihood of delinquency declines with the level of neighborhood housing market activity.21) In 1991 Susan M. and other factors. borrower credit history scores.

It is therefore imperative that if the bank has to succeed in competitive world. With innumerable choices before him. There is scope of exploiting the vast middle income group by releasing loans with special interest rate. it should be technological starry. the customer is needed then king. . same is the case with banks & housing loans. Customer centric progressive driven by highest standard of cooperative governance & guided by sound ethical values & above all should have personalized customer services. which would be beneficial to both parties.CONCLUSION The Indian customer has come a long way from purchasing to fulfilling their needs from buying a house customers now grab everything that comes their way but they do their own survey of optimum loans.

police officers etc.RECOMMENDATION The following suggestions are strongly recommended:  To broaden the customer base the vast middle income strata should be fully exploited.  Adoption of flexible & more lenient penalty should the  Customer fails to deposit the payment on time. .g. Class to be exploited by offering special reduced  Rates & linking the repayment from the source where the pay cheque to the employee is issued.g. this aspect must be exploited. Such facility will grow fast retail segment of the bank. The maximum age for repayment could be increase to 65-70 years of age. offers Long term repayment facilities & have no age restriction to choosing repayment. For e. reduce service charges & demand only the basic essential proof.  Offer multiple repayment loans services. law years. The penalty should be case to case basis rather than the same for the entire customer base. E.  Restriction to be reduced to bare minimum for loan advances & for repayment.  Simplify the procedure.  Most banks are reluctant to advance loan to the service class. This need to undergo special contract with government organization to ensure implementation.