A STUDY ON CUSTOMER SATISFACTION TOWARDS HOUSING LOAN FINANCING IN CHENNAI WITH SPECIAL REFERENCE TO ICICI HOUSING FINANCE

The basic needs of an!ind ha"e been #he food$ she%#e& and

c%o#hin'( She%#e& is basic necessi#) of %ife$ &an!ed behind on%) #o food and c%o#hin' in i *o&#ance (Ho+se is no# *%ace of d,e%%in' a%one i# a%so sa#isfies an indi"id+a%-s socia% and *s)cho%o'ica% needs( A ho e is a *%ace$ ,he&e ,e ha**i%) s*end ,i#h o+& fa i%) e be&s( The&e is

s#&on' +&'e in e"e&) indi"id+a% %ife$ ,he#he& &ich *eo*%e o& *oo& *eo*%e #o o,n a ho+se( So$ e"e&)one ,an#s #o be a o,ne& #han #o be a #enan# ( Ho+se b) i#se%f is no# *&od+c#i"e asse# b+# in"es# en# in ho+sin' he%*s in inc&easin' *&od+c#i"i#) *&o"ision of she%#e& is #h+s c%ose%) %in!ed ,i#h a co+n#&)-s o"e&a%% socio.econo ic de"e%o* en# Recen#%)$ d&as#ic chan'es ha"e been #a!en *%ace in #he of ho e %oans( Mos# of #he Indian ban!s and a&!e#

one) %ende&s ha"e

&ed+ced #he in#e&es# &a#es on #hese %oans and faci%i#a#in' #o f+%fi%% #he desi&e of ha"in' an o,n ho e of #he indi"id+a%( In India$ #he&e a&e an) *ossib%e so+&ces #o 'e# #hese %oans(

THE HOUSING LOAN SECTOR IN INDIA The Ho+sin' %oan sec#o& in India is #he *i."o#a% &o%e *%a)e& in #he '&o,#h of #he &ea% es#a#e scena&io in India( /ee*in' #his in %o#s of effo&#s ha"e been ind$

ade #o *&o"ide #he need fo& ho+sin' and #he

effo&#s #a!en b) #he Go"e&n en# in ho+sin' a%so( The &es*onsibi%i#) #o *&o"ide ho+sin' finance %a&'e%) &es#ed ,i#h #he Go"e&n en# of India #i%% #he id.ei'h#ies( The se##in' +* of #he Na#iona% Ho+sin' 0an!

1NH02$ a f+%%) o,ned s+bsidia&) of #he Rese&"e 0an! of India 1R0I2 in 3455$ as #he a*e6 ins#i#+#ion$ a&!ed #he be'innin' of #he

e e&'ence of ho+sin' finance as a f+nd.based financia% se&"ice in #he co+n#&)( I# has '&o,n in "o%+ e and de*#h ,i#h #he en#&) of a n+ be& of s*ecia%i7ed financia% ins#i#+#ions 8 co *anies in #he *+b%ic$ *&i"a#e and 9oin# sec#o&s$ a%#ho+'h i# is a# an ea&%) s#a'e of de"e%o* en#( I# ,as in &eco'ni#ion of #he de"e%o* en# #ha# is +#+a%%) s+**o&#i"e &o%es of she%#e& and

id.ei'h#ies fo%%o,in' dec%a&a#ion of 345: as #he

in#e&na#iona% )ea& of she%#e& fo& #he ;Ho e%ess< conce&#ed effo&#s ,e&e ade in o+& co+n#&) #o fo& +%a#e a co *&ehensi"e Na#iona% Ho+sin' *o%ic)$ enco *assin' a%% #he e%e en#s &e%e"an# #o she%#e& de"e%o* en#( The os# si'nifican# eas+&e #a!en ,as #o es#ab%ish #he Na#iona%

Ho+sin' 0an! 1NH02 on =+%) 4$ 3455 +nde& #he a*e6 a'enc) #o

*&o o#e ho+sin' finance ins#i#+#ions$ #o

obi%i7e &eso+&ces fo& #he

ho+sin' sec#o& #o *&o"ide financia%$ #echnica%$ ad inis#&a#i"e assis#ance #o ho+sin' finance ins#i#+#ions as a%so #o &e'+%a#e #hei& ,o&!in' and #o co.o&dina#e ,i#h a%% #he a'encies connec#ed ,i#h ho+sin'( The 'enesis of fo& a#ion of NH0$ ho,e"e&$ da#es bac! #o 34:3 ,hen #he 0an!in' co ission ade a &eco enda#ion #o #his

effec#$ ,hich bein' #he hi'h %e"e% '&o+* is a**oin#ed b) #he 'o"e&n en# in 345> +nde& #he chai& an shi* of D&(C(Ran'a&a9an #he fo& e& De*+#) Go"e&no&$ Rese&"e 0an! of India(

Af#e& a *e&iod of &ecession in #he %a#e 344?s$ ,hich sa, *&o*e&#) #o an a%%.#i e %o,$ #he ho+sin' sec#o& has ,i#nessed a si'nifican# &e"i"a%( In fac#$ ho+sin' is one of #he fe, sec#o&s #ha# a&e !ee*in' #he econo ) on an e"en !ee%( Wi#h a hi'h +%#i*%ie& effec# #ha# *asses benefi#s #o o#he&

sec#o&s #h&o+'h fo&,a&d and bac!,a&d %in!a'es in #he econo )$ Ho+sin' *%a)s a si'nifican# *a&# in #he na#iona% GDP( In #e& s of inco e +%#i*%ie&$ i# &an!s fo+&#h ahead of sec#o&s %i!e #&ans*o&#a#ion I# is es#i a#ed #ha# a +ni# inc&ease in #he fina%

and a'&ic+%#+&e(

e6*endi#+&e ,o+%d 'ene&a#e addi#iona% inco e as hi'h as fi"e #i es( I#

benefi#s #he e *%o) en# sec#o& and i *&o"es #he socio.econo ic *a&a e#e&s as ,e%%( Ho+sin' finance has been a !e) faci%i#a#o& in ens+&in' #he consis#en# '&o,#h of #he sec#o& in #he *as# fe, )ea&s( The #o#a% "a%+e of #he ho+sin' finance '&o,n b) @5 *e&cen# f&o a&!e#$ as in @??@.?A$ ,as BCD? bi%%ion( I# has BAD? bi%%ion in #he *&e"io+s )ea&( O"e& #he

%as# #h&ee )ea&s$ i# has been '&o,in' a# a co *o+nded ann+a% '&o,#h &a#e of @5 *e&cen#$ econo )( The ho+sin' finance a&!e# has seen #he en#&) of a hos# of a!in' i# one of #he fas#es# '&o,in' sec#o&s in #he

*&i"a#e and fo&ei'n ban!s in &ecen# )ea&s( Whi%e #his has in#ensified #he co *e#i#ion$ i# has a%so &es+%#ed in #he e6*ansion of #he The en#&) of a&!e#(

+%#i*%e *%a)e&s is no# diffic+%# #o e6*%ain( Ho+sin'

finance is$ *e& se "ie,ed as ;%ess &is!)< co *a&ed #o o#he& financin' ac#i"i#ies( This is beca+se ho+sin' finance is e6#ended a'ains#( This is beca+se ho+sin' finance is e6#ended #his sec#o& ,hen disb+&se en#s #o #he ind+s#&ia% sec#o& ,e&e %o,$ and #he&e ,e&e #h+s s+&*%+s f+nds #o de*%o)( Toda)$ #he&e a&e o"e& A? ho+sin' finance co *anies 1HFCs2 &e'is#e&ed ,i#h #he Na#iona% Ho+sin' 0an! 1NH02$ ,hich is #he noda%

a'enc) fo& s#&+c#+&ed de"e%o* en# of #he sec#o&( And #he&e a&e

o&e

#han A?? o#he& *%a)e&s in #he sec#o&$ in bo#h #he o&'ani7ed and +no&'ani7ed se' en#s inc%+din' coo*e&a#i"es$ NGOs and &e'iona% ban!s( Ini#ia%%)$ i# ,as on%) ins#i#+#ions s+ch as ICICI and Ho+sin' and U&ban De"e%o* en# Co&*o&a#ion 1HUDCO2 #ha# *&o"ided ho+sin' %oans( Then$ in #he *as# fe, )ea&s$ se"e&a% ban!s 1S0I$ PN0$ ICICI$ ID0I$ Cana&a 0an!2 and s*ecia%i7ed ho+sin' finance co *anies 1LIC Ho e Finance$ De,an Ho+sin'2 en#e&ed #he f&a)( The ban!s ad"an#a'e o"e& #he ins#i#+#ions ,as #hei& %o,e& cos# of f+nds and '&ea#e& &each( Fo& e6a *%e$ S0I has D?? b&anches offe&in' ho e %oans and ICICI has abo+# A??$ ,hi%e ICICI and LIC Ho e Finance ha"e 3CD and @?? s+ch b&anches &es*ec#i"e%)( The en#&) of ne, *%a)e&s has sha&*ened #he co *e#i#ion$ ,i#h #he &es+%# #ha# #he&e is h+'e +nde&c+##in' in in#e&es# &a#es( The cons+ e& is benefi#in' eno& o+s%) f&o #his besides o&e *eo*%e

o*#in' fo& ho e %oans( Man) c+s#o e&s a&e *&e*a)in' #hei& ea&%ie& hi'h.cos# %oans and &efinancin' #he a# a %o,e& cos#( Refinance

cons#i#+#ed 3?.3D *e&cen# of #he #o#a% disb+&se en# in @??@.?A(

This do,n,a&d #&end in in#e&es# &a#es be'an #o h+&# #he ho+sin' finance co *anies and c+# in#o #hei& b+siness( Cons#&ained b) #hei& hi'he& a"e&a'e cos# of f+nds$ #he) ,e&e no# in a *osi#ion #o &a#es bein' offe&ed b) #he ban!s( Ho,e"e&$ #he NH0 &ecen#%) s#a&#ed *&o"idin' #he HFCs &efinance a# a &ed+ced &a#e 1b) @?? basis *oin#2( This has HFCs o&e co *e#i#i"e no,( The c+&&en# ini + ade #he a#ch #he

%endin' &a#es

bein' E+o#ed b) #he NH0 a&e :(3 *e&cen# 1fi6ed2 and >(4 *e&cen# 1f%oa#in'2( Toda) ICICI is a a9o& *%a)e& in #his sec#o& ,i#h A3 *e&cen# A: *e& cen# %as# )ea&$

a&!e# sha&e( A%#ho+'h i#s sha&e dec%ined f&o

i#s ho+sin' %oan disb+&se en# has '&o,n b) o"e& @? *e& cen#( ICICI 0an!$ a &e%a#i"e%) en#&an#$ has seen #he and os# d&a a#ic &ise in '&o,#h

a&!e# sha&e( I# occ+*ies #he n+ be& #,o *osi#ions in #he sec#o&$ a&!e# sha&e '&o,in' f&o > *e& cen# in #he *&e"io+s )ea& #o

,i#h i#s

@: *e& cen# and disb+&se en# #&i*%in' in #he *as# one )ea&( LIC Ho e Finance has a%so seen disb+&se en# #his )ea&( Ano#he& in#e&es#in' #&end #ha# has e e&'ed in &ecen# )ea&s is #ha# #he co bined sha&e of #he fo+& bi' *%a)e&s 1ICICI$ ICICI$ S0I and a9o& '&o,#h ,i#h a >@ *e& cen# inc&ease in

LIC.HF2 in #he sec#o& has been '&o,in' each )ea&( I# &ose f&o cen# in @??3.?@ #o 5? *e&cen# in @??@.?A( This *%a)e&s a&e 'e##in' do ina#e( These

:@ *e&

eans #ha# #he s a%%e&

a&'ina%i7ed '&ad+a%%) ,hi%e bi' fo+& con#in+e #o

a&!e# sha&es do no#$ ho,e"e&$ &ef%ec# #he assis#ance

*&o"ided #o #he %o,e& inco e '&o+*s 1LIG2$ #he econo ica%%) ,ea!e& sec#ions 1EWS2 and &+&a% cons+ e&s( In #hese #h&ee se' en#s$ H+dco has been #he *ionee& and #he ain *%a)e&( A %a#e en#&an# in &e#ai%

ho+sin' finance$ H+dco *&o"ides assis#ance di&ec#%) #o +&ban cons+ e&s #h&o+'h i#s ;Hidco Ni,as< sche e( I#s sha&e in #he &e#ai% se' en# is %ess #han D *e& cen#( I#s concen#&a#ion is o&e on in#e'&a#ed

de"e%o* en#$ inc%+din' de"e%o* en# of &esiden#ia% co%onies( One of #he ain fac#o&s fo& #he s*+&# in ho+sin' finance has

been s#&on' 'o"e&n en# s+**o&#( In #he *as# fe, +nion b+d'e#s$ #he 'o"e&n en# has e6#ended se"e&a% fisca% incen#i"es and #a!en eas+&es

#o si *%if) *&oced+&es #o 'i"e an i *e#+s #o #he ho+sin' sec#o&( So e of #hese b+d'e#a&) sec#ion 5?1i2 fo& eas+&es inc%+de e6#ension of benefi#s +nde& ass ho+sin' *&o9ec#s$ %o,e& in#e&es# &a#es and

inc&eased #a6 &eba#es fo& ho+sin' %oans and inc&eased de*&ecia#ion fo&

e *%o)ee ho+sin'( The 'o"e&n en# is a%so enco+&a'in' NRI in"es# en# in ho+sin' and &ea% es#a#e( The b+d'e# fo& @??A.?C has e6#ended #he benefi# of ded+c#ion of in#e&es# on ho+sin' %oans fo& ano#he& )ea&( The in#e&es# &a#es a&e a%&ead) do,n #o 4 *e& cen# and if #he ho e %oan benefi#s a&e inc%+ded$ #he effec#i"e &a#e *os#.#a6 ,o&!s o+# #o >(D *e&cen#( The %o,.in#e&es# &a#e &e'i e see s #o be he&e #o s#a) and sho+%d ac# as a s#i +%+s fo& ho+sin' de and( The +&ban ho+sin' sec#o& has a%so been s+bs#an#ia%%) '&o,n( The +&ban %and cei%in' Ac# has been sc&a**ed( So e s#a#es ha"e a%so &ed+ced s#a * d+#ies and cha&'ed &en#a% %a,s( Ano#he& *osi#i"e #&end in #he ho+sin' sec#o& is #he inc&easin' affo&dabi%i#) of ho+ses( P&ices of &esiden#ia% *&o*e&#ies ha"e d&o**ed b) A? #o C? *e& cen# since 344C.4D$ +ch a!in' in"es# en# in &ea% es#a#e of ne, *&o*e&#ies

o&e econo ica%( Wi#h a s#ead) s#&ea

co in' in#o

a&!e#$ *&ices a&e +n%i!e%) #o shoo# +* in #he nea& #e& (

A%so$ *+&chasin' and bo&&o,in' *o,e&s ha"e '&o,n( Ho+ses ha"e beco e o&e affo&dab%e fo& #he idd%e.inco e '&o+* in #he %as# fi"e.

)ea&( Ea&%ie&$ ho+ses ,o+%d$ on an a"e&a'e$ cos# 9+s# 5.3? )ea&s-

sa%a&)( Eas) a"ai%abi%i#) of ho e finance has a%so con#&ib+#ed in a si'nifican# ,a) #o #he &es+&'ence of #he ho+sin' sec#o&( Co *e#i#ion in #he ho e %oan a&!e# has a%so &es+%#ed in o&e

choices fo& cons+ e&s( The&e a&e o*#ions in #he #)*es of ho e %oan #ooF s#a&#in' ,i#h ho+se *+&chase and ho+se b+i%din' %oans #o ho+se i *&o"e en# %oans$ ho e eE+i#) %oans 1%oans a'ains# o&#'a'e of

*&o*e&#)2$ ho e e6#ension %oans$ NRI %oans$ e#c( #he&e is a%so #he o*#ion of a f%oa#in' &a#e of in#e&es# and a fi6ed &a#e of in#e&es#( So e ban!s no, offe& "a&iab%e on#h%) ins#a%% en# sche es

fo& &e*a) en# of ho e %oans( The ins#a%% en# can e"en be ad9+s#ed a'ains# #he on#h%) a"ai%ab%e ba%ance in sa"in's acco+n#s( Unde& a on#h%) ins#a%% en# can be inc&eased #o

s#e*.+* *a) en# *%an$ #he

a#ch f+#+&e inc&eases in inco e$ a *&od+c# desi'ned fo& )o+n' *eo*%e a# #he s#a&# of #hei& ca&ee&s( The&e is a%so a s#e*.do,n *%an$ ean# fo& *eo*%e nea&in' &e#i&e en#( Incen#i"es s+ch as acciden# co"e& and %ife ins+&ance co"e& a&e bein' #h&o,n in #o a##&ac# c+s#o e&s( To add a ,o&d of ca+#ion #ho+'h$ ,hi%e #he ho e finance sec#o& see s #o be boo in'$ #he co+n#&) is a s#i%% ,a) behind #he 'oa% of *&o"idin' ho+sin' fo& a%% b) @??:( To &each #his #a&'e#$ acco&din' #o #en#h *%an es#i a#es$ #he&e is need #o cons#&+c# AA i%%ion +ni#s 13D

i%%ion ho es in +&ban a&eas and 35

i%%ion in &+&a% a&eas2$ in"o%"in'

an in"es# en# of Rs 3$D?? bi%%ion( A# *&esen#$ s+**%) s#ands a# abo+# @(D i%%ion ho+sin' +ni#s *e& )ea&( This has #o be &aised #o >(D i%%ion

+ni#s *e& )ea& #o b&id'e #he 'a*( Wha# ,o+%d he%* "as#%) is #o *+sh &efo& s fo&,a&d( Se"e&a% s#a#es s#i%% con#in+e #o cha&'e hi'h s#a * d+#ies( Ren#a% %a,s a&e o+#da#ed and do no# enco+&a'e b+i%din' fo& &en#in' o+#( Financia% s+**o&# #o &ea% es#a#e de"e%o*e&s is a% os# ne'%i'ib%e beca+se #he F%s a&e ,a) of #hei& financia% s#andin' and +nhea%#h) *&ac#ices( And in o&de& #o enco+&a'e &+&a% ho+sin'$ co s)s#e s need #o be s#&en'#hened( The 'o"e&n en# see s #o ha"e i#s *e&s*ec#i"e in *%ace as fa& as ho+sin' sec#o& 'oes(
CENTRAL AND STATE GOGERNMENTS Ti%% #he id.ei'h#ies$ #he &es*onsibi%i#) #o *&o"ide ho+sin'

+ni#). based info& a% %endin'

finance &es#ed$ b) and %a&'e$ ,i#h #he 'o"e&n en#( The Cen#&a% and s#a#e Go"e&n en#s indi&ec#%) s+**o&# #he ho+sin' b+i%din' effo&#( The Cen#&a% Go"e&n en# has in#&od+ced$ f&o #i e #o #i e$ "a&io+s socia%

ho+sin' sche es( The &o%e of #he Cen#&a% Go"e&n en# "isa."e&sa #hese sche es is confined #o %a)in' do,n b&oad *&inci*%es$ *&o"idin' necessa&) ad"ice and &ende&in' financia% assis#ance in #he fo& of

%oans and s+bsidies #o #he s#a#e 'o"e&n en#s and +nion #e&&i#o&ies( The Cen#&a% Go"e&n en# has se# +* #he Ho+sin' and U&ban De"e%o* en# Co&*o&a#ion 1HUDCO2 #o finance and +nde&#a!e ho+sin' and +&ban de"e%o* en# *&o'&a es$ de"e%o* en# of %and fo& sa#e%%i#e #o,ns$ a#e&ia%s ind+s#&)(

besides se##in' +* of a b+i%din'

The Cen#&a% Go"e&n en# *&o"ides eE+i#) s+**o&# #o #he HUDCO and '+a&an#ees #he bonds iss+ed b) i# A*a&# f&o #his$ bo#h

Cen#&a% and s#a#e Go"e&n en#s *&o"ide ho+se b+i%din' ad"ances #o #hei& e *%o)ees( Whi%e #he Cen#&a% Go"e&n en# fo& +%a#es ho+sin' sche es$ #he S#a#e Go"e&n en#s a&e #he ac#+a% i *%e en#in' a'encies(

SCOPE OF THE STUDY.

Ho+sin' *%a)s a s*ecia% &o%e in #he socia% and *o%i#ica% dia%o'+e in os# socie#ies Ho+sin' finance si#+a#ion has an) o#he& e e&'in' +ch co on ,i#h

#ha# of

a&!e#s a&o+nd #he ,o&%d( The need fo& has been e6*&essed in

i *&o"e en#s in #he ho+sin' finance s)s#e

se"e&a% s#+dies and b) diffe&en# 'o"e&n en# and in#e&na#iona% a'encies( I# is a a9o& co *onen# in c&ea#in' s#ab%e and hea%#h)

co

+ni#ies and is of#en #he %a&'es# sin'%e ho+seho%d e6*ense(

Ho+sin' can be a sec#o& fo& s#i +%+s of #he na#iona% econo )( In &ecen# da)s in Indian Go"e&n en# concen#&a#es o&e on

*&o"idin' she%#e& #o e"e&) ci#i7en( In #his 9+nc#+&e e"e&) indi"id+a% is s#&+''%in' #o cons#&+c# o& b+) a ne, ho+se$ fo& #his *+&*ose #he) see! assis#ance of *+b%ic$ *&i"a#e and fo&ei'n ban!s( So s#+d)in' #he ad"an#a'es and disad"an#a'es of 'e##in' Ho+sin' %oan has beco e "e&) i *o&#an# and #his ,i%% a%so &e"ea% #he %e"e% of sa#isfac#ion of #he c+s#o e&s ,i#h s*ecia% &efe&ence #o ICICI(

IMPORTANCE OF THE STUDY.

A %a&'e ho e%ess *o*+%a#ion e6is#s ac&oss IndiaF conside&ab%e cons#&ain#s in de"e%o*in' a**&o*&ia#e ho e fo& #he *oo& ha *e& b&oad$ sca%eab%e ini#ia#i"es fo& #he c&ea#ion of ho+sin'( I# has %on' been &e'a&ded as a f+nda en#a% h+ an &i'h#( Mo&e &ecen#%)$ i# has been e *%o)ed as a !e) indica#o& of E+a%i#) of %i"in' a on's# #he *oo&( The&e is '&o,in' e"idence #ha# de ons#&a#es #ha# i *&o"in' #hese a eni#ies a) a%so *&o o#e *&od+c#i"i#)$ +%#i a#e%) %eadin' #o

'&ea#e& econo ic de"e%o* en#( This s#+d) has 'o# i#s i *o&#ance #o ,ei'h #he ban!in' ind+s#&) on #he c%assifica#ion of #hei& se&"ice #o #he c+s#o e&s( This s#+d) is "e&) +ch +sef+% fo& #he c+s#o e&s #o

iden#if) #hei& bes# choice fo& #he Ho+sin' %oan sche es based on se&"ice de%i"e&ed b) #he ban!s(

OBJECTIVE OF THE STUDY.

01. To s#+d) #he de"e%o* en# of ho+sin' %oan in #he ban!in' ind+s#&) and i#s i *ac# on #he sha*e of #he econo )( 02. To s#+d) #he *e&fo& ance of ICICI on Ho+sin' %oan sche es and #he %e"e% of C+s#o e& sa#isfac#ion( 03. To s#+d) #he &ecen# i *ac# of Ho+sin' %oan sche es of ICICI in Chennai ci#)( 04. To s#+d) #he i *ac# of de o'&a*hic "a&iab%es on #he sa#isfac#ion %e"e% of #he c+s#o e&s of Ho+sin' %oans ,i#h &efe&ence #o ICICI( ?D( To co *a&e #he o"e& a%% *e&fo& ance of ICICI ,i#h #he *e&fo& ance of o#he& ban!in' O&'ani7a#ions in Chennai ci#) based on #he Ho+sin' %oan sche e(

METHODOLOGY. Samp !"#.

The c+s#o e&s of ICICI ho+sin' %oan in chennai ci#) a&e ass+ ed as no& a%%) dis#&ib+#ed *o*+%a#ion and f&o #his no& a%%)

dis#&ib+#ed *o*+%a#ion a sa *%e of si7e 3?D is #a!en fo& #he ana%)sis( S$a$!%$!&a $'' % (%)*. ?3( The fac#o& ana%)sis b) *&inci*%e co *onen# ana%)sis is +sed #o &ed+ce #he da#a in#o fac#o&s( ?@( The /.Means c%+s#e& ana%)sis is +sed #o c%assif) #he sa *%es in#o diffe&en# '&o+*s( ?A( The non.*a&a e#&ic chi sE+a&e #es# is +sed #o find #he associa#ion be#,een de o'&a*hic "a&iab%es and #he c%+s#e& '&o+*s( ?C( The *a&a e#&ic T.#es# and one.,a) ANOGA a&e +sed #o iden#if) #he diffe&ence in de o'&a*hic "a&iab%es( ?D( The +%#i*%e %inea& &e'&ession ana%)sis is +sed #o find #he eans ,i#h in #he diffe&en# c%assifica#ion of e#hod

i *ac# of de o'&a*hic "a&iab%es on #he #o#a% sco&e of %e"e% of sa#isfac#ion(

?>( The /a&% *ea&son-s co.efficien# of co&&e%a#ion is +sed #o find #he n+ e&ica% &e%a#ionshi* a on' #he "a&iab%es(

LIMITATION OF THE STUDY. The sa *%e si7e of 3?D is #a!en f&o #he e#&o*o%i#an chennai

ci#) a%one #o s#+d) #he *e&fo& ance of ICICI in Ho+sin' %oan$ so an) &es+%# ob#ained in #his #hesis can no# be 'ene&a%i7ed and conside&ed fo& #he ,ho%e Ta i%nad+ o& India( P)+!'* ', S$(*This s#+d) connec#ed ,i#h 3444.@??C( C.ap$)+ %&.)m) The disse&#a#ion is c%assified as fo%%o,sH.

The Fi&s# Cha*#e& dea%s ,i#h #he i *o&#ance of #he s#+d) and #he &esea&ch desi'n( The Second Cha*#e& dea%s ,i#h #he Ho+sin' %oans de#ai%s and #he #&end$ '&o,#h of #he ho+sin' %oans and ban!in' s)s#e s of India(

The Thi&d Cha*#e& ana%)sis #he Ho+sin' %oan of ICICI in Chennai ci#)$ *e&fo& ance of #he ban! in Chennai$ %oan &eco"e&) s)s#e $ Doc+ en# &eE+i&ed fo& ho+sin' %oan and in#e&es# &a#es

The Fo+&#h Cha*#e& ana%)sis and in#e&*&e#a#ion is con#ained #he "a&io+s s#a#is#ica% info& a#ion abo+# #he ho+se %oan in ICICI 0an! and sa *%in'(

The Fif#h Cha*#e& concen#&a#es on S+ Conc%+sion and A**endi6

a&) and

CHAPTER II HOUSING FINANCE AND BAN/ING INDUSTRY

H'(%!"# F!"a"&) a" O0)+0!)1 Rea%i7in' #he d&ea of o,nin' a ho+se has beco e E+i#e an in #he ho+sin' finance ind+s#&)( Wha#

eas) #as! #oda) ,i#h #he boo

&e ained as a %o,.*&ofi%e sec#o& o"e& #he decades has s+dden%) s#a&#ed ,i#nessin' a %o# of ac#i"i#)( Tho+'h #he fo& a% sec#o& con#&ib+#es on%) @?I of #he ho+sin' finance &eE+i&e en#$ #he ,idenin' 'a* be#,een #he de and and s+**%) is enco+&a'in' E+i#e a n+ be& of ban!s and financia% ins#i#+#ions #o "en#+&e in#o #he &ed.ho# sec#o&( In fac# #he ho+sin' sec#o& has been one of #he fe, sec#o&s #ha# had sho,n a *osi#i"e +*s,in' des*i#e s%o, econo ic '&o,#h( 0+o)ed b) #he *&esence of bi' *%a)e&s bo#h f&o #he *+b%ic and

#he *&i"a#e sec#o&s$ #he ind+s#&) has achie"ed ne, hei'h#s in #e& s of %oan disb+&se en# in #he %as# #,o )ea&s( The '&o,#h #&ends of #he ind+s#&) has enab%ed i# #o 'e# #he &i'h# &eco'ni#ion bo#h f&o #he ban!s

and financia% ins#i#+#ions$ ,hich a&e no, "ie,in' i# as a s*ecia%i7ed finance *&od+c#( In fac# #he 'o"e&n en# has a%so e *hasi7ed fo& #he fi&s# #i e on ho+sin' finance in i#s nin#h fi"e.)ea& *%an #o ee# #he

f+#+&e de and of ho+sin'( The&e is an an#ici*a#ed de and.s+**%) 'a* of a**&o6i a#e%) C? i%%ion d,e%%in' +ni#s( This has %ed #o #he

'o"e&n en# 'i"in' incen#i"es fo& #he de"e%o* en# of ho+sin'( E)ein' #he h+'e *o#en#ia% of #he co *anies ha"e been a''&essi"e in a&!e#$ ho+sin' finance

a&!e#in' #hei& ho e %oans( The) a&!e#in'

a&e %ea"in' no s#one +n#+&ned and a&e ado*#in' inno"a#i"e a**&oaches #o &each #he c+s#o e&s( Ri'h# f&o #o In#e&ne# di&ec#

a&!e#in' a'en#s

a&!e#in'$ e"e&) *ossib%e a**&oach is bein' *+# #o +se #o

'ain an +**e& hand( Wi#h #he co *e#i#ion in #he ind+s#&).inc&easin' anifo%d$ #he &+%es of #he 'a e ha"e chan'ed( P%a)e&s a&e #&)in' #o ca*#+&e #he s#&a#e'ies( The boo in &ea% es#a#e and %o,e& in#e&es# &a#es a&e ac#in' as o&e o& %ess s#abi%i7ed( a&!e# ,i#h ho e %oan e%as and a''&essi"e a&!e#in'

#&i''e&s fo& #he ind+s#&)( P&o*e&#) *&ices ha"e

In#e&es# &a#es ha"e been sho,in' a s#eadi%) dec%inin' #&end( P+&chasin' and bo&&o,in' *o,e& of #he *eo*%e ha"e si'nifican#%) 'one +*( EE+a%%) on #he in#e&es# &a#es f&on#$ #he *%a)e&s ha"e been ado*#in' an a''&essi"e *o%ic) and a&e &ed+cin' #he in#e&es# &a#es in #+ne ,i#h #he *&i e %endin' &a#es( Since ho+se finance is conside&ed #o be a &e%a#i"e%) %o, &is! fo& of ad"ance$ co e&cia% ban!s ha"e been

*&o *#ed #o beco e ac#i"e in ho+sin' finance( These de"e%o* en#s ha"e f+e%ed in an +nfo&eseen co *e#i#ion a on' #he "a&io+s *%a)e&s and #&i''e&ed an in#e&es# &a#e ,a& in #he ho+sin' finance a&!e#( on#hs

Gone a&e #he da)s$ ,hen #he c+s#o e&s had #o ,ai# fo& #o ob#ain a ho e %oan( The ne,

an#&a fo& s+ccess #oda) is E+ic! and

E+a%i#) se&"ice ,i#h &ene,ed foc+s on c+s#o e& &eE+i&e en#s( The +%#i a#e beneficia&) in #he s#iff co *e#i#ion *&e"ai%in' in #he ho+sin' finance a&!e# is #he ho e finance see!e&$ as #he *%a)e&s a&e ")in' os# "a%+e.added and efficien#

,i#h one ano#he& #o *&o"ide #he

se&"ices( And conside&in' #he "a&io+s ho e %oan o*#ions a"ai%ab%e #o #he c+s#o e&$ #he a&!e# is "i&#+a%%) do ina#ed b) #he c+s#o e&(

HOUSING FINANCE SYSTEM IN INDIA

The %as# #h&ee #o fo+& decades ha"e seen si'nifican# ins#i#+#iona% de"e%o* en# in #he a&ea of ho+sin' finance in o+& co+n#&)( Es#ab%ished in 34:? #he Ho+sin' And U&ban De"e%o* en# Co&*o&a#ion 1HUDCO2 has se# #he *ace fo& inc&easin' e *hasis on affo&dab%e ho+sin' fo& #he econo ica%%) ,ea!e& sec#ion as a a9o&

#h&+s# a&ea( The conf%ic# #ha# e6is#ed be#,een affo&dabi%i#) and ins#i#+#iona% "iabi%i#) is a%so a##e *#ed #o be &eso%"ed #h&o+'h ca&ef+% fo& +%a#ion of *&o9ec# fo& a%% inco e '&o+*s and b) in#e&na%i7in' c&oss.s+bsidies as #he basic s#&a#e')( Seein' she%#e& as an i *o&#an# sec#o&$ &eso+&ce s+**o&# #o e6is#in' ins#i#+#ion in #he se"en#h fi"e.)ea& *%an has a%so been a+' en#ed si'nifican#%) and *&ac#ices and *&oced+&es a&e bein' s#&ea %ined #o enab%e ins#i#+#ions #o &eso+&ces efficien#%) a# ini + cos#( #ha# has e e&'ed is E+i#e di"e&se$ obi%i7e

The ho+sin' finance s)s#e

no, a na#iona% %e"e% *+b%ic sec#o& ins#i#+#ion$ HUDCO$ ca#e&in' #o a%% inco e '&o+*s in an in#e'&a#ed and financia%%) "iab%e co *osi#ion( In #he *&i"a#e sec#o& #he Ho+sin' De"e%o* en# Finance Co&*o&a#ion 1ICICI2 is ca#e&in' #o indi"id+a% ho+se %oan &eE+i&e en#s and #he&e a&e

o"es #o se#+*

o&e ICICI #)*e ins#i#+#ions ha"e co e +* #h&o+'h #he

ini#ia#i"e of #he b+i%de&s b+# #hei& i *ac# is s#i%% #o be e"a%+a#ed effo&#s a&e a%so on #o b&in' in #he ban!in' sec#o& and *&o"idend f+nd &eso+&ces in #o #he ho+sin' sec#o& s+**%) of o&e eanin'f+%%) ,i#h ass+&ed

one) a# &easonab%e cos#( The %ife ins+&ance and Gene&a% ode of %endin'$ #o he%*

ins+&ance co&*o&a#ion #oo a&e &e"ie,in' #hei&

#o &ed+ce co%%a#e&a% cos# of bo&&o,in' #he 'o"e&n en# of India has decided #o se# +* a na#iona% ho+sin' ban! ,i#h *&i a&) &o%e of obi%i7in' de*osi#s &eE+i&ed fo& #he ho+sin' sec#o& #h&o+'h %oca% sa"in' and %oan associa#ions( De%ibe&a#ions a&e a%so a# an ad"anced s#a'e #o *&o o#e a se*a&a#e co *an) #o #a!e on #he 9ob of in#&od+cin' o&#'a'e ins+&ance in India( The&e a&e a fe, fea#+&es of HUDCO$ ,hich dis#in'+ishes i# f&o o#he& ins#i#+#ions( Fi&s# is #ha# i# *&edo inan#%) ca#e&s #o #he

,ea!e& sec#ions$ o"e& 55 *e&cen# of #he ho+sin' +ni#s *&o o#ed b) i# bein' fo& #he LIG and EWS ca#e'o&ies( Second is #ha# i# is #he on%) ins#i#+#ion ,hich has been ab%e #o &each ho+sin' finance #o &+&a% a&eas in a eanin'f+% ,a) ,he&e i# has *&o o#ed o"e& one i%%ion ho+sin'

+ni#s d+&in' #he %as# fe, )ea&s( The #hi&d and "i#a%%) i *o&#an# fea#+&es is #ha# i# is #he on%) financin' ins#i#+#ion ,hich is %oo!in' #o #he

#echnica% as*ec# of ho+sin' de"e%o* en# inc%+din' ho+sin' in #he &e'iona% and +&ban con#e6#$ a&ea *%annin'$ *h)sica% and socia% inf&as#&+c#+&e$ %a)o+#s and a&chi#ec#+&a% s#anda&ds b+i%din' *&od+c# a#e&ia%$

ana'e en#$ conse&"a#i"e socia% and econo ic as*ec#s of +ni#ies s+**o&#i"e &esea&ch

ho+sin' de"e%o* en# of #he ,ea!e& co

and #&ainin' of #he *e&sonne% en'a'ed in #he ho+sin' sec#o&( Th+s HUDCO is #he on%) na#iona% %e"e% #echno financin' ins#i#+#ion$ ,hich is and ,i%% con#in+e #o be in"o%"ed in a%% as*ec#s of ci#) and &e'iona% de"e%o* en# ,i#h e *hasis on ho+sin' fo& #he ,ea!e& sec#ions( A# #he s#a#e %e"e%$ a*a&# f&o #he s#a#e ho+sin' boa&ds a n+ be&

of de"e%o* en# a+#ho&i#ies and i *&o"e en# #&+s#s ,i#h 9+&isdic#ion o"e& s*ecific +&ban a&ea ha"e been and a&e bein' es#ab%ished ,hich dea% ,i#h a&ea de"e%o* en# and of#en a%so ,i#h ho+sin' and si#e and se&"ices *&o'&a es( The&e is no, an a##e *# #o f+&#he& a+' en# #he

ins#i#+#iona% s#&+c#+&e a# #he s#a#e %e"e% b) es#ab%ishin' s*ecia%i7ed a'encies fo& "a&io+s *+&*oses %i!e &+&a% ho+sin'$ s%+ +*'&ada#ion$

,ea!e& sec#ion ho+sin'$ *o%ice ho+sin'$ ,a#e& s+**%)$ se,e&a'e and +nici*a% finance( So e of #he&e ha"e beco e effec#i"e o&'ani7a#ion ,he&e as so e e6is# on%) in na e( No#,i#hs#andin' #his need fo& s+ch

ins#i#+#ions is bein' inc&easin'%) *&o o#ed and a%so bein' o**osed on '&o+nds of addi#iona% o"e&head cos#s( A n+ be& of s#a#e ho+sin' ci#) and de"e%o* en# a+#ho&i#ies a&e no,$ ,i#h HUDCO assis#ance$ o"in' in #o #he a&ea of cash %oans fo&

ho+sin' #o '&ea#e& e6#ende&s befo&e( /e&a%a has a%&ead) de ons#&a#ed #ha# #he cash %oan *&o'&a e hand%ed #h&o+'h s#a#e a'encies can

*&o o#e ,ea!e& sec#ion ho+sin' +sin' #&adi#iona% #echno%o'ies in a "e&) si6 eanin'f+% ,a)( /a&na#a!a has ado*#ed #his *&o'&a a9o& and o#he& s#a#es a&e a%so e in i#s

o"in' in #his di&ec#ion( The&e a&e

#,o fac#s of #his *&o'&a sche es$ an o*#ion

e( The fi&s# is #ha# in a&ea de"e%o* en#

a) be 'i"en #ha# #he a%%o##ed can ei#he& ha"e a

b+i%# ho+se o& a *%o# ,i#h cash %oan( The second is cash %oan on a *%o# o,ned b) #he a**%ican# in an) %oca#ion( HUDCOJs ain #h&+s# is one

#he fi&s# a%#e&na#i"e #h&o+'h i# does no# disco+&a'e #he second( Th&o+'h #his &eo&ien#a#ions of f+nc#ions$ #he s#a#e a'encies ,i%% e e&'e as *o,e&f+% faci%i#a#o&s of inc&eased access #o %and and cash assis#ance ,i#h *eo*%e b+i%din' #hei& o,n ho+ses acco&din' #o #hei& &eE+i&e en#s and affo&dabi%i#)( In #hese %oan *&o'&a es$

obi%i7a#ion of de*osi# f&o

#he *eo*%e ,i%% be in#e'&a#ed( The

in#&od+c#ion of #he %oan %in!ed de*osi# sche e b) #he ICICI ,as a

be'innin' and in #he )ea&s #o co e can e e&'e as a si'nifican# *&o'&a e a# #he ins#i#+#iona% %e"e%( I# ,i%% on #he one hand inc&ease

#he f%o, of ho+seho%d sa"in' in #he ho+sin' sec#o& and on #he o#he& s#&en'#hen #he financia% base of #he ho+sin' ins#i#+#ions( A a9o& con#&ib+#ion in #he ho+sin' finance sec#o& is bein' o"e en#( The s#a#e a*e6.ho+sin' co.

ade b) #he co.o*e&a#i"e

o*e&a#ion %a&'e%) f+nded b) LIC and GIC and s+**o&#ed b) HUDCO a&e *&o o#in' ho+sin' in a bi' ,a) #h&o+'h #he co.o*e&a#i"e s#&+c#+&e( The&e a&e so e si'nifican# fea#+&es of #he coo*e&a#i"e s#&+c#+&e( One is #ha# b) #a!in' sha&e ca*i#a% con#&ib+#ion f&o *&os*ec#i"e %oane&s( The) a&e a%&ead) *&ac#icin' %oan %in!ed de*osi#s ,hich is bein' *&o9ec#ed in &ecen# )ea&s a ne, conce*# in obi%i7in'

*e&sona% sa"in' fo& ho+sin' i# needs conside&a#ion a# #he *o%ic) %e"e% ,he#he& ne, ins#i#+#iona% ca%%ed sa"in' and %oan associa#ion be se#+* of #he coo*e&a#i"es be s#&en'#hen and$ if necessa&) &e o+%ded( Ano#he& fea#+&e is #ha# coo*e&a#i"es *&o"ide a edi+ #h&o+'h ,hich

#he *&i"a#e sec#o&$ na e%) *&i"a#e *&o o#e&s and b+i%de&s can be b&o+'h# in#o *a&#ici*a#e in ho+sin' de"e%o* en# and *&o"ide ho+ses of acce*#ab%e cos# and s#anda&ds ,i#h %o,e& o"e&heads( So e of #he

coo*e&a#i"es$ ho,e"e&$ s+ffe& beca+se of *oo& &eco"e&) and ana'e&ia% ca*abi%i#ies( The coo*e&a#i"e ho+sin' o"e en# in India

,i%% s#and '&ea#%) s#&en'#hened in #he )ea&s #o co e as HUDCO has decided #o e6#end i#s s+**o&# #o i# in a +ch o&e *osi#i"e anne& and

has s*ecifica%%) se# a*a&# ce&#ain f+nds fo& i#$ ,hich ,i%% be *&o'&essi"e%) inc&eased$ and$ #h+s$ *&o"idin' as access #o #he %o, in#e&es# &a#e finance of HUDCO #o #he %o, inco e and ,ea!e& sec#ions in #he coo*e&a#i"e fo%d( I# is +nfo&#+na#e #ha# a "iab%e and se%f &e%ian# ho+sin' finance s)s#e in India is s#i%% #o be de"e%o*ed( O"e& 4? *e&cen# of #he ho+sin' e# #h&o+'h info& a% a&&an'e en#s in di"e&se

finance needs a&e #oda) *a&#s of #he co+n#&)(

A %a&'e a o+n# of &eso+&ces a&e bein' di"e&#ed and in"es#ed in non.*&od+c#i"e sec#o&s$ ,hich co+%d$ if #he &i'h# se&"ices a&e ade

a"ai%ab%e #h&o+'h ho+sin' finance in#e& edia&ies #o *o#en#ia% de*osi#o&s$ be channe%ised &eso+&ces in#o #he ho+sin' sec#o&( The ho+sin' finance ins#i#+#ions +s#$ #he&efo&e$ s*ecia%i7e a# *&o"idin' c&edi# on

adeE+a#e &e#+&ns #o de*osi#o&s$ ,hi%e a%so offe&in' %on' #e&

a##&ac#i"e and eas) #e& s fo& ho+se b+i%din'$ ,hich is no# a%,a)s *ossib%e #h&o+'h #he no& a% co e&cia% ban!in' channe%s(

HOUSING AS AN INDUSTRY
Fo& an) sec#o& #o be #&ea#ed as an ind+s#&)$ #he fo%%o,in' &eE+i&e en#s sho+%d be f+%fi%%edH 1i2 I# sho+%d in"o%"e ac#i"i#iesF and 1ii2 The an+fac#+&in'

an+fac#+&in' ac#i"i#ies sho+%d be ca&&ied o+#

in a fac#o&)( Acco&din' #o an es#i a#e of N0O$ o"e& >D *e&cen# of #he cos# of #he ho+se consis#s of #he b+i%din' a#e&ia%s and on%) A? #o AD

*e&cen# of #he cos# of a ho+se consis#s of #he %abo+& co *onen#( 0+i%din' edi+ a#e&ia%s a&e an+fac#+&ed in #he ind+s#&ia% +ni#s$ %a&'e$

and s a%%( In o&de& #o enco+&a'e s#anda&di7a#ion and

inno"a#ions in #he #echno%o') of ho+se cons#&+c#ion ac#i"i#)$ i# is necessa&) #o in#&od+ce inno"a#ions in b+i%din' e#hods and a%so

*&o"ide a**&o*&ia#e #oo%s and eE+i* en#s ,hich ,o+%d no# on%) i *&o"e #he ,o&!in' condi#ions of %abo+&$ b+# ,o+%d a%so e6*edi#e #he *ace of cons#&+c#ion$ and a# #he sa e #i e i *&o"e #echno%o'ica% chan'es in cons#&+c#ion ind+s#&) ,hich as &e ained$ b) and %a&'e$ "e&) #&adi#iona%( To achie"e #he ob9ec#i"e i# is essen#ia% #o dec%a&e ho+sin' as an ind+s#&)( This ,o+%d 'i"e ho+sin' sec#o& #he access #o %oans f&o ban!s and o#he& financia% ins#i#+#ions( I# can a%so a"ai%

concession no, a"ai%ab%e #o o#he& ind+s#&ies( Ho+sin' sec#o& is a%so &es*onsib%e fo& *&o"idin' e *%o) en# #o %a&'e.sca%e %abo+& ,o&!fo&ce

inc%+din' +n.s!i%%ed$ se i.s!i%%ed and s!i%%ed ,o&!e&s( This is an addi#iona% fac#o& #ha# sho+%d 9+s#if) #he f%o, of benefi#s of an ind+s#&) #o #his sec#o&(

INDIAN BAN/ING INDUSTRY

Recen#%) fede&a#ion of Indian cha be& of co e&ce and

ind+s#&) 1FICCI2 cond+c#ed a s+&"e) on #he s#a#+s of #he Indian ban!in' ind+s#&)( The &es*onden#s fo& #he s+&"e) ,e&e #he ban!s #he se%"es *+b%ic$ *&i"a#e and fo&ei'n( The s+&"e) findin's #h&o, %i'h# on #he ne, ,a"e of chan'es #ha# a&e on #he a"ai% in #he 0an!in' ind+s#&)( 0an!s ,e&e in a se%f.con'&a#+%a#o&) hi'h ood ,hen #he) a,a&ded

a&!s fo& #hei& *e&fo& ance$ b) &a#in' i# as ;Good #o Ge&)

Good<( 0an!s did #+&n o+# i *&essi"e *&ofi# *e&fo& ance d+&in' #he %as# #,o )ea&s in *a&#ic+%a&$ essen#ia%%) d+e #o "e&) 'ood #&eas+&) inco es f&o Gene&a% sec+&i#ies #&adin' in an en"i&on en# of fa%%in' a%%

in#e&es#s( 0+# #ha# is his#o&) no, and in#e&es# &a#es$ f&o

indica#ions canno# fa%% f+&#he& and #he +*,a&d #&end is e6*ec#ed an) #i e$ *&inci*a%%) beca+se of #he &isin' &a#es in a9o& econo ies( The

&ea% cha%%en'e$ #he&efo&e$ is in ens+&in' *&ofi#abi%i#) ,hen in#e&es#

&a#es a&e &aisin' K a da+n#in' #as!$ ,hich needs ,e%% defined s#&a#e'ies #as!$ ,hich needs ,e%%.defined s#&a#e'ies fo& acco *%ish en#( 0an!s ha"e been #+&nin' o+# i *&essi"e s#aff *&od+c#i"i#) *e&fo& ance as ,e%%( Than!s #o #he &ecen# GRS sche e and #he fai&%) sa#isfac#o&) *ace of a+#o a#ion( The &is! ana'e en# s)s#e s in Indian 0an!s

a&e no# &a#ed a%% #ha# hi'h( The cons#&ain# bein' %i i#ed a"ai%abi%i#) of se%ec# ins#&+ en# and &es#&ic#ed hed'in' echanis s( Pa+ci#) of

#&ained s#aff is a%so an i *o&#an# &eason( 0an! need #o a+' en# ca*i#a% and *+# in *%ace so*his#ica#ed a+#o a#ed &is! ana'e en# ode%s(

0ein' based.II co *%ian# is ano#he& cha%%en'e( Indian 0an!s canno# c%assified as in#e&na#iona% ac#i"e ban!s as of no, and hence$ 0ased.II co *%iance is no# of +ch i edia#e conseE+ence ho,e"e&$

,i#h conso%ida#ion &o+nd #he co&ne&$ #he iss+e ,i%% soon need #o be add&essed( The s+&"e) no#es #ha# #he %e"e% of NPA co+%d ,i#h #he ado*#ion of 4?.da)s no& &ise fas#e& es*ecia%%) in fa& a&'ina%%) 'o +*

o&e i *o&#an#%)$ ,i%% #he NPA

sec#o&$ ,i#h #he *&o*osed a''&essi"e

%endin' in #he co in' #h&ee )ea&sL Un%ess$ ban!s de"ise inno"a#i"e e#hods in c&edi# de%i"e&) and in *&o"ision of in#e'&a#ed a'&a&ian se&"ices$ #he) ,i%% be bac! #o #he )es#e&)ea&s of #a&'e# Kbased %endin'

fo& fa&

c&edi# #o be s+ccess s#o&)F #he 'o"e&n en# sho+%d s#&en'#hen

#he &+&a% inf&as#&+c#+&e( The &ecen#%) *assed SARFAESI Ac# 1Po*+%a&%) Ca%%ed Sec+&i#i7a#ion Ac#2 ,i#h #he *&o*osed a end en#s and #he Co&*o&a#e Deb# Res#&+c#+&in' 1CDR2 echanis s a&e

'ene&a%%) *e&cei"ed as %ende&.f&iend%) ins#&+ en#s$ ca+sin' fa"o&ab%e c%i a#e fo& &eco"e&)( The&e a**ea&s #o be a ,e%co e &ise in #he c&edi# *o&#fo%io$ es*ecia%%) in #he &e#ai% se' en# o&e i *o&#an#%)$ ban!s

a**ea& #o ha"e shed$ a# %eas# in *a&# #hei& c&edi# sh)ness( 0an!s a&e b+%%ish in #hei& *%ans #o acce%e&a#e #he *ace of a+#o a#ion in a+' en#in' e6*os+&es #o ca*i#a% a&!e#s and in c&oss %ine of

se%%in' ne, *&od+c#s %i!e ins+&ance and c&edi# ca&d( The bo##o

#he s+&"e) &e*o&# is #he fac# #ha# *+b%ic sec#o& ban!s a&e no# fo+nd ,an#in' in a##+nin' #he se%"es #o #he ne, ,a"e of chan'es(

GRO2TH FACTORS OF HOUSING FINANCE

I# is *&obab%) a n+ be& of &easons ,hich #o'e#he& acco+n# fo& #he '&o,#h$ &a#he& #han a sin'%e fac#o&( Fa%%in' in#e&es# &a#es ha"e

ce&#ain%)

ade ho e %oans

+ch

o&e affo&dab%e fo& #he Indian a&!e#(

cons+ e&( A )o+n'e& se# of cons+ e& a&e a%so en#e&in' #he A*a&# f&o

fa%%in' in#e&es# &a#es$ i# is a%so s#ab%e &ea% es#a#e *&ices$ and

#he a##&ac#i"e #a6 sa"in's *&o"ided b) #he 'o"e&n en# #ha# ha"e #o'e#he& &es+%#ed in a hi'h '&o,#h( A'ain$ b+i%de&s as a co ha"e beco e +ni#)

o&e *&ofessiona% in #hei& a**&oach$ #h+s boos#in'

c+s#o e& confidence( A%% of #his #o'e#he& &es+%#ed in #he hi'h c+&&en# '&o,#h &a#e( A on's# #he ;sof#e&< fac#o&s$ a&!e# &esea&ch sho,s #ha# #he

indse# of #he Indian c+s#o e& as fa& as #a!in' a %oan is conce&ned has +nde&'one a chan'e( Un%i!e #he ca+#io+s o& e"en ne'a#i"e o+#%oo! on %oans a fe, )ea&s a'o$ #he cons+ e&s #oda) ha"e a fa& o&e *osi#i"e

and o*en o+#%oo! on #a!in' a %oan( Cons+ e&s fee% #ha# #a!in' a %oan enfo&ces a sense of '&ea#e& financia% disci*%ine$ as #he) a&e bo+nd #o +se a *a&# of #hei& sa%a&) #o *a) #he EMI$ &a#he& #han s*endin' on an ad hoc basis( The dec%ine in #he in#e&es# &a#es has been es*ecia%%) f&o +ch #a%!ed abo+#$

#he *oin# of "ie, of s+s#ainabi%i#)( I# is a%,a)s o"e in f+#+&e( Whe#he&

diffic+%# #o *&edic# #he ,a) in#e&es# &a#es ,i%%

&a#es a&e %i!e%) #o d&o* f+&#he& o& 'o +* ,o+%d de*end on a n+ be& of

ac&oecono ic fac#o&s inc%+din' #he GDP '&o,#h &a#e$ ad inis#e&ed &a#es in #he econo )$ inf%a#ion e#c( Toda) a %a&'e *a&# of #he inc&e en#a% %oans sanc#ioned b) HFCs a&e ad9+s#ab%e &a#e %oans( To #his e6#en#$ #he &is!s #ha# HFCs a&e o*en #o a&e %o,e&$ as #he &a#es *a)ab%e b) #he c+s#o e& ,o+%d a%so inc&ease(

RECENT DEVELOPMENT OF HOUSING FINANCE IN INDIA

The Indian ho+sin' finance ind+s#&) has '&o,n b) %ea*s and bo+nds in *as# fe, )ea&s( To#a% ho e %oan disb+&se en# ban!s and ho+sin' finance co *anies 1HFCs2 has &isen f&o Rs(@4AD4(@4 c&o&es

in @??3.?@ #o Rs D3>:@(: c&o&es in @??@.?A ,i#nessin' a *heno ena% '&o,#h of :>I d+&in' #his *e&iod( The &ob+s# '&o,#h e6*e&ienced b) #he ind+s#&) in #he %as# fe, )ea&s has been #&i''e&ed b) a n+ be& of fac#o&s$ so e of ,hich a&e %is#ed be%o,H Ta6 &eba#es on ho+sin' %oans anno+nced in #he &ecen# b+d'e#s( Lo,e&in' of &ea% es#a#es *&ices #o affo&dab%e %e"e%s(

 G&ea#e& a o+n# of *&ofessiona%is

bein' e6hibi#ed b)

de"e%o*e&s and b+i%de&s ,ho a&e #oda) acE+i&in' c%ea&e& #i#%es and a&e doin' o&e #i e%) co *%e#ion of *&o9ec#s(

In"es# en# o*#ions ha"e d&ied +* ,i#h %o,e& in#e&es#s &a#es in ban!s and #he s#oc! )ea&s( S%ashin' of in#e&es# &a#e on ho e %oans( Fi6ed in#e&es# &a#e ca%c+%a#ed on an ann+a% &es# basis fo& a %oan of Rs D %a!hs and #en+&e of 3D )ea&s has fa%%en f&o 3>I in 344:.45 #o a&!e# bein' do,n fo& n+ be& of

33(CI in @??@.?A( This dec%inin' #&end is e6*ec#ed #o con#in+e in #he )ea&s #o co e ,i#h ind+s#&) e6*e&#s e6*ec#in' fi6ed &a#es and f%oa#in' &a#es #o fa%% b) ano#he& 3D? basis *oin#s in @??C( F%oa#in' &a#es fo& sho&# a#+&i#)

ho+sin' %oans a&e #oda) ho"e&in' in #he &an'e :(:D.4(:DI *e& cen#(

Ta3 ) 2.1

Yea&

HFCs

0an!s

To#a%

G&o,#h o"e& *&e"io+s

3444.@??? @???.?3 @??3.?@ @??@.?A

453@(?A 3@>A:(5D 3C>3C(CC 3:5A@(3:

4433(AD 4:5:(@C 3C:CC(5D AA5C?(DA

34:@A(A5 @@C@D(?4 @4AD4(@4 D3>:@(:

)ea& . 3A(:? A?(4@ :>(??

FUTURE OF HOUSING FINANCE

The bi''es# *%a)e&s #oda) ,o+%d inc%+de ICICI$ ICICI 0an!$ S0I and LIC ho+sin' finance( In addi#ion$ &e'iona% *%a)e&s a&e s#&on' in *a&#ic+%a& s#a#es8a&eas( P+b%ic sec#o& ban!s ha"e a%so been a&!e#in' #his *&od+c# ac#i"e%)( The &e%a#i"e%) %o,e& %e"e% of off.#a!e in #he non.&e#ai% sec#o& has %ed ban!s #o shif# #hei& foc+s on &e#ai% asse#s fo& de*%o) en# of f+nds( Wi#h o&#'a'es seen as #he ;safes#< in

#he &e#ai% asse# ca#e'o&)$ a %a&'e n+ be& of ban!s ha"e decided #o concen#&a#e on #his sec#o&( As a &es+%#$ #his sec#o& has seen a hi'he& %e"e% of ac#i"i#) in &ecen# #i es( Conside&in' #he de"e%o*in' &ea% es#a#e a&!e# and '&o,in' +ch

i *o&#ance 'i"en #o ho+sin' %oans b) ban!s and financia% ins#i#+#ions as a *a&# of #hei& *o&#fo%io$ #he scena&io is %i!e%) #o &e ain "e&) co *e#i#i"e( The ban!e&-s f+#+&e ,i%% de*end +*on no# on%) bein' ab%e #o offe& #he os# co *e#i#i"e &a#es$ b+# a%so #he bes# *ossib%e se&"ice$ ee# c+s#o e&-s &eE+i&e en#s( In #he

and in s#&+c#+&in' *&od+c#s #o %on'e& #e& as s a%%e&

a&!e#s '&o, and acco+n# fo& a %a&'e&

*&o*o&#ion of inc&e en#a% '&o,#h in #his sec#o&$ #he dis#&ib+#ion s#&en'#h and #he &each of #he ban!8HFCs ,i%% a%so *%a) an i *o&#an# &o%e in de#e& inin' #hei& s+ccess

The %as# decade sa, a sea chan'e in ban!in' s#&a#e'ies$ ,i#h o&e foc+s on c+s#o e&( The chan'es ha"e b&o+'h# abo+# a *a&adi' shif# f&o se%%e& a&!e# #o b+)e&s a&!e#$ ,hich has 'i"en &ise #o

co *e#i#ion( ConseE+en#%) i# has ca%%ed fo& a s*ecia%i7ed c+s#o e&. o&ien#ed foc+s #o 'ain and &e#ain a&!e# sha&e( In a a&!e# #ha# !ee*s an#&a

'&o,in' in de*#h and di"e&si#)$ niche ban!in' is #he ne, ado*#ed b) a%%( Th+s$ ins#ead of #a&'e#in' an en#i&e

a&!e#$ ban!s ha"e

ado*#ed s#&a#e') #o foc+s on #he s*ecific b+siness se' en#s #o &each #hei& #a&'e# a+dience( 0an!s a&e fas# &es#&+c#+&in' #hei& b+siness ac#i"i#ies( No %on'e& confined #o a# #&adi#iona% co&*o&a#e c%ien#e%e$ #he) a&e &eachin' o+# #o indi"id+a% cons+ e&s di&ec#%)( 0an!s a&e a''&essi"e%) #&)in' #o beco e financia% s+*e& a&!e# a one.s#o* financia% sho* *&o"idin' o"e has he%*ed #he #o

se&"ices #o s+i# #he c+s#o e& needs( The

&es#o&e bac! so e %os# '&o+nd$ #oo( As #he f%o, of f+nds #o ind+s#&ies '&e, a# a %o,e& &a#e in #he %a#e 344?s K #he sha&e of ind+s#&ies in o+#s#andin' ban! c&edi#$ in fac#$ has dec%ined f&o CA(4I in @???.?3( ho,e"e&$ ban!s co *ensa#ed #h&o+'h a''&essi"e *e&sona% ban!in'( C5I in 344D.4> #o +ch of #he %oss

Pe&sona% %oan$ a &e%a#i"e%) ne, c&edi# ins#&+ en# in #he co+n#&)$ has beco e an i *o&#an# o+#%e# fo& ban! c&edi# d+&in' #he %as# decade( I#s sha&e in a''&e'a#ed o+#s#andin' c&edi# of o+& sched+%ed co e&cia% ban!s has inc&eased s#eadi%) f&o 4(AI in 344D.4> #o

3@(A I in @???.?3( In ac#+a% #e& s$ #he a''&e'a#e a o+n# of *e&sona% %oan has inc&eased b) an ann+a% co *o+nd '&o,#h &a#e of @@I f&o Rs(@A(>@4 c& in 344D.4> #o Rs( >D$4C? c& in @???.?3( This is si'nifican#( Fo&$ #he &aise is *e&sona% %oan has no# on%) he%*ed ban!s #o &aise c&edi# off.#a!e$ i# has he%*ed &ed+cin' #he a'ni#+de of &is! #oo( Since *e&sona% %oan is s*&ead o"e& a %a&'e n+ be& of acco+n#s and #he a"e&a'e sha&e of indi"id+a% acco+n# is &e%a#i"e%) %o,$ #his %iE+idi#) &is! is conside&ab%) %ess #he %a&'e& *a&# of #his %oan is 'i"en a'ains# *&o*e&#ies$ #he *&o*o&#ion #o defa+%# is %o,( The sha&e of ho+sin' in #o#a% *e&sona% %oan has inc&eased s#eadi%) f&o A?(3I in 344D.4> #o abo+# A5(>I in @???.?3( In ac#+a% e&cia% ban!s has Rs(:$33A c& in 344D. o&eo"e&$ since

o&#'a'e of *e&sona%

#e& s$ a''&e'a#e ho+sin' c&edi# 'i"en b) #he co inc&eased b) an ann+a% co *o+nd &a#e @4I f&o

4> #o Rs(@D$C3@c& in @???.?3( This has &ed+ced #he ban!s c&edi# &is! conside&ab%)( The&e is no den)in' #he fac# #ha# ho+sin' is a &ed.ho# sec#o& #hese da)s and is #i**ed #o '&o, a# a *heno ena% ADI *e& ann+ ( A %o# of #his ind+s#&)-s 'ood fo&#+nes can be c&edi#ed #o #he %ibe&a% #a6 incen#i"es do%ed o+# b) #he Go"e&n en# in &ecen# )ea&s( Ridin' on #he bac! of #hese ,e%co e #a6 b&ea!s$ ho+sin' finance co *anies ha"e a''&essi"e%) *+shed #hei& %oan *&od+c#s( The o+#h,a#e&in'

*o#en#ia% has bec!oned e"en ban!s #o,a&ds e6*%o&a#ion and conE+es#( Fo& i%%ions of o&dina&) Indians$ o,nin' a ho e has &e ained fo& decades( Toda)$ a fa"o&ab%e &ea%i7e #ha# d&ea i6#+&e of "a&io+s

a che&ished d&ea

fac#o&s is he%*in' #he

fas#e& #han e"e& befo&e(

O,nin' a ho+se b&in's ,i#h i# #&e endo+s sec+&i#).b+# #ha#-s no# #he on%) o& os# co *e%%in' &easons #o #a!e a ho e %oan$ sa) e6*e&#s(

E"en as o#he& #a6 sa"in' a"en+es %oses #hei& a**ea%$ in"es#in' in a ho e is e e&'in' as an e6ce%%en# a%#e&na#i"e fo& o&dina&) in"es#o&s %oo!in' fo& #a6.sa"in's(

Mo&e and

o&e indi"id+a%s a&e no, E+e+in' +* #o a"ai% of a an) #a6 and o#he&

ho e %oanF af#e& a%%$ b+i%din' a ho e offe&s

ad"an#a'es( Fo& one$ indi"id+a%s can 'e# a 3$D?$??? *e& ann+

a6i +

ded+c#ion of Rs(

on in#e&es# *aid$ if #he cons#&+c#ion if *+&chase of

#he ho+se *&o*e&#) is co *%e#ed ,i#hin #h&ee )ea&s of #a!in' #he %oan( In addi#ion$ #he) can a%so benefi# f&o a @?I #a6 &eba#e on #he *o&#ion a6i + of Rs(@?$???(

of #he *&inci*a% &e*aid ann+a%%)$ s+b9ec# #o a

Ma!in' #hin's easie& ha"e been #,o )ea&s of fa%%in' in#e&es# &a#es( Wi#h a A?? basis *oin# fa%% in bond )ie%ds %as# )ea& a%one$ in"es#o&s ha"e disco"e&ed #ha# #he) can #a!e %oans a# *&ac#ica%%) &oc!.bo##o &a#es( This a%% has ade ho+sin' %oans a %+c&a#i"e b+siness a%#e&na#i"e

fo& ban!s( Rea%i7in' #he e6*%osi"e '&o,#h *o#en#ia% of ho e %oans$ ban!8financia% co *anies ha"e been 9os#%in' each o#he& #o '&ab c+s#o e&s ,i#h a%%+&in' #o '&ab o&e

o&e c+s#o e&s ,i#h a%%+&in' dea%s(

A%&ead)$ ne,s*a*e&s a&e ,&i#in' abo+# #he ;f+&io+s *&ice ,a&s< #a!in' *%ace be#,een #he 'ian#s in #he b+siness( Wi#h co *e#i#ion hea#in' da) b) #he da)$ ho+sin' finance co *anies a&e %o,e&in'$ and in so e cases$ ,ai"in' *&ocessin' and ad inis#&a#ion fees( Us+a%%)$ #hese cha&'e a o+n# @I of #he #o#a% %oan a o+n#( In #he case of a Rs(@? %a!hs %oan$ e"en 3I &ed+c#ion in #he se&"ice cha&'e #&ansia#es in#o a conside&ab%e sa"in' of Rs(@?$???( Man) ins#i#+#ions ,ai"e #he *&ocessin' and ad inis#&a#ion fees$ of one

a**%) fo& a %oan a# an) of #he ;*&o*e&#) #he financia% ins#i#+#ions and b+i%de&s( Th+s Indian ban!in' ind+s#&)

ea%s<$ o&'ani7ed 9oin#%) b)

,hich

is

+nde&'oin'

#&ansfo& a#ion fo& #he *as# one decade co+*%ed ,i#h &ecession in #he econo ) and *oo& c&edi# off.#a!e has fo+nd in ho+sin' finance a ne, *a&#ne&$ ,hich in "ie, of #he fac#s en+ e&a#ed abo"e *&o"ided a #&e endo+s o**o&#+ni#)( One of o+& *o*+%a& *&od+c#s ,hich has &ecei"ed an o"e&,he% in' &es*onse f&o "a&io+s c+s#o e&s is #he *e&sona% %oan ee# a ,ide &an'e of

,hich co es hand) fo& #he sa%a&ied c%ass #o

*e&sona% needs and o#he& +nfo&eseen e6*endi#+&es( The ain fea#+&es of #he sche e a&eH

E%i'ibi%i#)H Pe& anen# e *%o)ees of Cen#&a%8S#a#e Go"e&n en#$ P+b%ic Sec#o& Unde&#a!in'$ A+#ono o+s 0odies$ Ins#i#+#ions ha"in' a# %es# #h&ee )ea&s of ac#i"e &e ainin' se&"ice(

P+&*oseH Fo& an) *e&sona% need o& #o A o+n# of LoanH a( Ma6i +

ee# an) e6i'enc)(

Rs(@(?? %a!es o& nine #i es '&oss

on#h%) sa%a&)(

b( G&oss ded+c#ions inc%+din' ins#a% en#s of #he *&o*osed %oan no# #o e6ceed D?I of #he '&oss inco e( Ma&'inH Ni% Sec+&i#)H a2 Fo& e *%o)ees ,hose acco+n#s a&e ain#ained b) o+& b&anches

b2 Fo& o#he&sH Thi&d *a&#) '+a&an#ee conside&ed 'ood fo& #he a o+n# ad"anced( Ra#e of In#e&es#H 3AI P(a( Re*a) en#H The %oan a%on' ,i#h in#e&es# is &e*a)ab%e in A> eE+a% on#h%) ins#a% en#s be'innin' one on#h af#e& #he

disb+&se en# of #he %oan(

HOUSING LOAN DISBURSEMENTS

The #a6 so*s *&o"ided fo& in"es# en#s in ho+sin' and de*&essed &ea% es#a#e *&ices has he%*ed boos# #he de and fo& ho e %oans and #he ind+s#&) has been '&o,in' a# a &a#e of @5.A?I fo& #he %as# #h&ee )ea&s( F+&#he&$ #he %o, defa+%#s e6*e&ienced in #his sec#o&$ has a%so a##&ac#ed "a&io+s in #his sec#o&$ has a##&ac#ed "a&io+s *%a)e&s and e"en ban!s and financia% ins#i#+#ions ha"e en#e&ed #his sec#o& a''&essi"e%)( This has a%so &es+%#ed in in#ense co *e#i#ion in #his ind+s#&) &es+%#in'

in &e*ea#ed &a#e c+#s and "a&io+s so*s bein' offe&ed #o a##&ac# #he c+s#o e&s( Ho,e"e&$ #he in#ense co *e#i#ion has %ed #o #he di%+#ion of "a&io+s c&edi# no& s #he&eb) affec#in' #he c&edi# E+a%i#)( 0an!s and %eadin' ins#i#+#ions ha"e been offe&in' so*s s+ch as ,ai"e& of *&ocessin' fees$ ,ai"e& of '+a&an#o&s and c&edi# &efe&ences$ ,ai"e&s of co%%a#e&a%s e#c( This #&end does no# a+'+& ,e%% fo& #he ind+s#&) since i# ,o+%d &es+%# in a de#e&io&a#ion of #he c&edi# E+a%i#)(

F+&#he&$ #i es

an) ban!s ha"e s#a&#ed offe&in' 3??I finance 1and a#

o&e #han 3??I2 fo& ho e %oans( Conside&in' #ha# #he &ea%

es#a#e *&ices ha"e been f%+c#+a#in' #his is no# a hea%#h) si'n and co+%d effec# #he *&i a&) sec+&i#) a# a %a#e& da#e( Co *e#i#i"e *&ess+&e ha"e a%so &es+%#ed in ho+sin' finance co *anies facin' o*e&a#iona% &is!s s+ch as s#aff #+&no"e&$ *&oced+&a% %a*ses in c&edi# and %e'a% a**&aisa%s$ doc+ en#a#ion iss+es e#c( #he c+s#o e&s ha"e a%so beco e a,a&e of #he in#ense co *e#i#ion and ha"e s#a&#ed ba&'ainin' ,i#h #he co *anies &es+%#in' in #he &e%a6a#ion of "a&io+s no& s(

The

a&!e# is a%so ,i#nessin' a s*+&# in #he *&od+c#s bein'

offe&ed( Wi#h a "ie, #o %+&e c+s#o e&s and offe& an a##&ac#i"e *&ice$ #he HFCs and ban!s ha"e a%so s#a&#ed offe&in' %oan *&od+c#s ,hich a o&#i7e #he %oans on a #he ind+s#&) no& on#h%) &ed+cin' ba%ance *&od+c# as a'ains#

of ann+a% &ed+cin' ba%ance %oans( The #&end has

a%so been #o,a&ds %oan *&od+c#s %in!ed #o a f%oa#in' &a#e of in#e&es#( The ban!s and HFCs ha"e *&edo inan#%) been #a&'e#in' #he sa%a&ied se' en# and #he b+siness c%ass fo& ho e %oans( Ho,e"e&$ of %a#e HFCs ha"e a%so s#a&#ed desi'nin' s*ecific *&od+c#s !ee*in' in ind niche a&!e#s and "a&ied se' en#s of #he socie#)(

Whi%e #he co *e#i#ion has &es+%#ed in #he *%a)e&s #he hi#he&#o +n#a**ed &+&a%

o"in' in#o

a&!e#s$ #he *&ess+&e on s*&eads has

&es+%#ed in #he *%a)e&s e)ein' #he econo ica%%) ,ea!e& se' en#s and #he se%f.e *%o)ed ca#e'o&ies of c+s#o e&s( GRUH has a%so %a+nched a no"e% %oan *&od+c#. GRUH s+"idha ai ed a# %o,e& inco e se' en#( The sche e has been desi'ned ,i#h a ne'a#i"e a o&#i7a#ion *&inci*a% ,i#h a "ie, #o *&o"ide f%e6ibi%i#) #o #he c+s#o e&s in cash f%o,s( The s+"idha *&od+c# a%%o,s #he c+s#o e&s #o choose #he ins#a% en# #he) a&e co fo&#ab%e se&"icin' in #he ini#ia% )ea& and

#he&eaf#e&$ #he ins#a% en#s &ise each )ea& in s+ch a b+&den on #he c+s#o e&-s cash f%o, is no# affec#ed(

anne& #ha# #he

ICICI HOME LOAN

Since

a!in' i#s

aiden "en#+&e in #he ho e %oan se' en# in 3444$ ICICI 0an! has been a&!e# %eade& HDFC$ ,i#h i#s a''&essi"e a&!e#in' s#&a#e')(

b&ea#hin' do,n #he nec! of

M+a%i#) and "a%+e.added se&"ice . &a#he& #han in#e&es# &a#e . ha"e been #he ha%% a&! of ICICI$ ,i#h #he co *an) ca*i#a%i7in' on #he absence of Bdoo& de%i"e&)N fo& ho+sin' %oans( In a a&!ed shif# f&o #he e6is#in' ind+s#&) no& s$ ICICI ca&"ed a niche fo& i#se%f b) #o co e #o #he ( Chec! o+# 'oin' #o #he *o#en#ia% bo&&o,e& &a#he& #han ,ai#in' fo& hi

o&e info& a#ion on #he ho+sin' %oans *&o"ided b) ICICI ban!( ICICI H'(%!"# L'a"% P+'*(&$%

ICICI NMa6Mone)N Ho e Loans offe& #he +niE+e ad"an#a'e of hi'he& %oan e%i'ibi%i#)$ ,i#h a %o,e& ini#ia% ins#a%% en#( One can 'e# +* #o A?I hi'he& a o+n# a'ains# oneNs c+&&en# inco e and #he ins#a%% en# a o+n# 'e#s s#e**ed +* o"e& #he )ea&s(

ICICI NS a&#Fi6N Ho e Loans co bine #he safe#) of fi6ed &a#es *%+s #he ad"an#a'es of f%oa#in' &a#es( Fo& #he fi&s# A )ea&s #he bo&&o,e& 'e#s a fi6ed in#e&es# &a#e and #he fo+&#h )ea& on,a&ds$ #he %oan 'e#s s,i#ched #o #he *&e"ai%in' f%oa#in' in#e&es# &a#e(

ICICI 0an! offe&s Ho e I *&o"e en# Loans fo& &eno"a#ion 8&ef+&bish en# of oneNs ho e( One can a"ai% of %oan +* #o Rs( D? La!hs and #he in#e&es# &a#e is sa e as #ha# of #he Ho e Loans( The %oan co"e&s +* #o :?I of #he cos# of i *&o"e en# and #he &e*a) en# *e&iod is 3D )ea&s(

F)a$(+)%

ICICI ban! offe&s ho e %oans fo& #he fi&s# *+&chase in &ead) cons#&+c#ion$ +nde& cons#&+c#ion *&o*e&#)$ *+&chase in &e.sa%e$ se%f cons#&+c#ion and e6#ension of e6is#in' %i"in' s*ace(

The %oan a o+n# can be +* #o 5?I of #he Cos# of P&o*e&#)( The a**%ican# can con"enien#%) &e*a) #he %oan o"e& a *e&iod +* #o @D )ea&s( The ban! *&o"ides #he choices of bo#h F%oa#in' &a#e of In#e&es# o& a# #he Fi6ed &a#e of In#e&es# o& a# #he co bina#ion of bo#h Fi6ed O F%oa#in' &a#es$ fo& #he &e*a) en# of #he ho e %oan(

E !#!3! !$

The %oan

+s# #e& ina#e befo&e o& ,hen #he bo&&o,e& #+&ns >D )ea&s of a'e o& +s# be @3 )ea&s of a'e$ a# #he #i e ,hen #he %oan a o+n# is +s# be ei#he& se%f e *%o)ed o& sa%a&ied indi"id+a%$ ,i#h a &e'+%a&

befo&e &e#i&e en#$ ,hiche"e& is ea&%ie&(

The a**%ican# sanc#ioned( The a**%ican#

so+&ce of inco e(

An Indian &esiden#$ ,he#he& sa%a&ied o& se%f.e *%o)ed$ can a**%) fo& ICICI Ho e Loan( In case if #he a**%ican# is an NRI$ he8she sho+%d be sa%a&ied(

D'&(m)"$% R)4(!+)* F'+ Sa a+!)* App !&a"$

D+%) Co *%e#ed A**%ica#ion Fo& Fee CheE+e Si'na#+&e Ge&ifica#ion P&oof Las# A Fo& 3> on#hs Sa%a&) S%i*

,i#h One Pass*o&# Si7e Pho#o'&a*h

Iden#i#)$ Residence Add&ess and A'e P&oof

0an! S#a#e en# fo& %as# >

on#hs f&o

Sa%a&) Acco+n#

Re*a) en# T&ac! &eco&d of e6is#in' %oans 8 Loan c%os+&e %e##e&

F'+ S) ,5Emp '-)* App !&a"$

D+%) Co *%e#ed A**%ica#ion Fo&

,i#h One Pass*o&# Si7e Pho#o'&a*h

Iden#i#)$ Residence Add&ess and A'e P&oof Inco e Ta6 Re#+&n 8 Co *+#a#ion of To#a% Inco e 8 A+di#o&s Re*o&# 8 0a%ance Shee# 8 P&ofi# O Loss Acco+n# ce&#ified b) Cha&#e&ed Acco+n#an# fo& %as# @ )ea&s 1A )ea&s fo& Ho e EE+i#)2 1bo#h fo& b+siness and *e&sona% of *a&#ne&s8di&ec#o&s2

0an! S#a#e en# fo& %as# >

on#h f&o

o*e&a#in' acco+n#

Re*a) en# T&ac! &eco&d of e6is#in' %oans 8 Loan c%os+&e %e##e& 0oa&d Reso%+#ion in case of a co *an) Si'na#+&e Ge&ifica#ion is &eE+i&ed #o be *&o"ided fo& a%% #he di&ec#o&s( ain *a&#ne&s 8

B)"),!$%

ICICI ho e %oans co e ,i#h benefi#s %i!e eas) in#e&es# &a#es$ si *%ified doc+ en#a#ion$ doo&s#e* se&"ice and f&ee *e&sona% acciden# ins+&ance( The faci%i#) of NLoan On PhoneN is beneficia% fo& sa%a&ied o& se%f.e *%o)ed &esiden#s of India$ a**%)in' fo& an ICICI Ho e Loan( The faci%i#) *&o"ides eas) %oan #o #he c+s#o e&$ ,i#h ini + doc+ en#a#ion(