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INTRODUCTION OF BANKING

MEANING AND DEFINITION:


Bank is an institution that deals in money and its substitutes and
provides crucial financial services. The principal type of baking in the
modern industrial world is commercial banking & central banking.
Banking means "Accepting Deposits for the purpose of lending or
Investment of deposits of money from the public, repayable on demand
or otherwise and withdraw by cheque, draft or otherwise."
-Banking Companies (Regulation) Act, 1949

The

concise

oxford dictionary

has

defined

a bank as

"Establishment for custody of money which it pays out on customers


order." Infact this is the function which the bank performed when
banking originated.

"Banking in the most general sense, is meant the business of


receiving, conserving & utilizing the funds of community or of any
special section of it."
-By H.Wills & J. Bogan

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"A banker of bank is a person, a firm, or a company having a
place of business where credits are opened by deposits or collection of
money or currency or where money is advanced and waned.
-By Findlay Sheras

A Bank:
Accept deposits of money from public,
Pays interest on money deposited with it.
Lends or invests money
Repays the amount on demand,
Allow the money deposited to be with drawn by cheque or draft.

ORIGIN OF WORD BANK:


The origin of the word bank is shrouded in mystery. According to
one view point the Italian business house carrying on crude form of
banking were called banchi bancheri According to another viewpoint
banking is derived from German word "Branck" which mean heap or
mound. In England, the issue of paper money by the government was
referred to as a raising a bank.

ORIGIN OF BANKING:
Its origin in the simplest form can be traced to the origin of
authentic history. After recognizing the benefit of money as a medium of
exchange, the importance of banking was developed as it provides the
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safer place to store the money. This safe place ultimately evolved in to
financial institutions that accepts deposits and make loans i.e., modern
commercial banks.

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HDFC BANK PROFILE

The Housing Development Finance Corporation Limited


(HDFC) was amongst the first to receive an 'in principle' approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector, as
part of the RBI's liberalization of the Indian Banking Industry in 1994.
The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January
1995.

Promoter:
HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since


its inception in 1977, the Corporation has maintained a consistent and
healthy growth in its operations to remain the market leader in mortgages.
Its outstanding loan portfolio covers well over a million dwelling units.
HDFC has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial
markets, a strong market reputation, large
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Shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.

Business Focus :
HDFC Bank's mission is to be a World-Class Indian Bank. The

objective is to build sound customer franchises across distinct businesses


so as to be the preferred provider of banking services for target retail and
wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's
business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.

Capital Structure :
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5

billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC
Group holds 22.1% of the bank's equity and about 19.4% of the equity is
held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by
Foreign Institutional Investors (FIIs) and the bank has about 190,000
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shareholders. The shares are listed on the Stock Exchange, Mumbai and
the National Stock Exchange. The bank's American Depository Shares are
listed on the New York Stock Exchange (NYSE) under the symbol
"HDB".

Distribution Network :
HDFC Bank is headquartered in Mumbai. The Bank at present has

an enviable network of over 535 branches spread over 228 cities across
India. All branches are linked on an online real-time basis. Customers in
over 120 locations are also serviced through Telephone Banking. The
Bank's expansion plans take into account the need to have a presence in
all major industrial and commercial centres where its corporate customers
are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centres
where the NSE/BSE has a strong and active member base.
The Bank also has a network of about over 1200 networked
ATMs across these cities. Moreover, HDFC Bank's ATM network can be
accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
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Management :
Mr. Jagdish Kapoor took over as the Bank's Chairman in July

2001. Prior to this, Mr. Kapoor was a Deputy Governor of the Reserve
Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional
banker for over 25 years, and before joining HDFC Bank in 1994 was
heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals
with a wealth of experience in public policy, administration, industry and
commercial banking. Senior executives representing HDFC are also on
the Board.
Senior banking professionals with substantial experience in India
and abroad head various businesses and functions and report to the
Managing Director. Given the professional expertise of the management
team and the overall focus on recruiting and retaining the best talent in
the industry, the bank believes that its people are a significant competitive
strength.

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Technology :
HDFC Bank operates in a highly automated environment in terms
of information technology and communication systems. All the bank's
branches have online connectivity, which enables the bank to offer speedy
funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated
Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring
the best technology available internationally, to build the infrastructure
for a world class bank. In terms of software, the Corporate Banking
business is supported by Flex cube, while the Retail Banking business by
Fin ware, both from i-flex Solutions Ltd. The systems are open,
scaleable and web-enabled.
The Bank has prioritised its engagement in technology and the
internet as one of its key goals and has already made significant progress
in web-enabling its core businesses. In each of its businesses, the Bank
has succeeded in leveraging its market position, expertise and technology
to create a competitive advantage and build market share.

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Business :
HDFC Bank offers a wide range of commercial and

transactional banking services and treasury products to wholesale


and retail customers. The bank has three key business segments:

Wholesale Banking Services :


The

Bank's

target

market

ranges

from

large,

blue-chip

manufacturing companies in the Indian corporate to small & mid-sized


corporates and agri-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services,
including working capital finance, trade services, transactional services,
cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for
its corporate customers. Based on its superior product delivery / service
levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognized as a
leading provider of cash management and transactional banking solutions

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to corporate customers, mutual funds, stock exchange members and
banks.

Retail Banking Services


The objective of the Retail Bank is to provide its target market

customers a full range of financial products and banking services, giving


the customer a one-stop window for all his/her banking requirements. The
products are backed by world-class service and delivered to the customers
through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking.
The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have
been designed keeping in mind needs of customers who seek distinct
financial solutions, information and advice on various investment
avenues. The Bank also has a wide array of retail loan products including
Auto Loans, Loans against marketable securities, Personal Loans and
Loans for Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers, providing customers the
facility

to

hold

their

investments

in

electronic

form.

HDFC Bank was the first bank in India to launch an


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International Debit Card in association with VISA (VISA Electron)
and issues the MasterCard Maestro debit card as well. The Bank launched
its credit card business in late 2001. By September 30, 2005, the bank had
a total card base (debit and credit cards) of 5.2 million cards. The Bank is
also one of the leading players in the "merchant acquiring" business with
over 50,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments.

Treasury :
Within this business, the bank has three main product areas -

Foreign Exchange and Derivatives, Local Currency Money Market &


Debt Securities, and Equities. With the liberalization of the financial
markets in India, corporates need more sophisticated risk management
information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team.
To comply with statutory reserve requirements, the bank is required to
hold 25% of its deposits in government securities. The Treasury business
is responsible for managing the returns and market risk on this investment
portfolio.

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Ratings :

Credit Rating :
HDFC Bank has its deposit programmes rated by two rating
agencies - Credit Analysis & Research Limited. (CARE) and Fitch
Ratings India Private Limited. The Bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by
CARE, which represents instruments considered to be "of the best
quality, carrying negligible investment risk". CARE has also
rated the Bank's Certificate of Deposit (CD) programme "PR 1+"
which represents "superior capacity for repayment of short
term promissory obligations". Fitch Ratings India Pvt. Ltd.
(100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)"
rating to the Bank's deposit programme, with the outlook on the
rating as "stable". This rating indicates "highest credit quality"
where "protection factors are very high". HDFC Bank also has
its long term unsecured, subordinated (Tier II) Bonds of Rs.4
billion rated by CARE and Fitch Ratings India Private Limited.
CARE has assigned the rating of "CARE AAA" for the Tier II
Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating
"AAA(ind)" with the outlook on the rating as "stable". In each of

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the cases referred to above, the ratings awarded were the highest
assigned by the rating agency for those instruments.
Corporate Governance Rating
The bank was one of the first four companies, which subjected
itself to a Corporate Governance and Value Creation (GVC) rating
by the rating agency, The Credit Rating Information Services of
India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation
on its "balanced value creation and corporate governance practices"
in future. The bank has been assigned a 'CRISIL GVC Level 1'
rating which indicates that the bank's capability with respect to
wealth creation for all its stakeholders while adopting sound
corporate governance practices is the highest.

Product Range:
Savings Account Apart from the usual facilities, you get a free

ATM Card, Interbranch banking, NetBanking, Bill Pay, Phone Banking,


Debit Card and MobileBanking, among others.
HDFC Bank Preferred: A preferential Savings Account where
you are assigned a dedicated Relationship Manager, who is your
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one-point contact. You also get privileges like fee waivers,
enhanced ATM withdrawal limit, priority locker allotment, free
Demat Account and lower interest rates on loans, to name a few.
Sweep-In Account: A fixed deposit linked to your Savings
Account. So, even if your Savings Account runs a bit short, you
can issue a cheque (or use your ATM Card). The money is
automatically swept in from your fixed deposit into your Savings
Account.
Super Saver Account: Gives you an overdraft facility up to 75%
of your Fixed Deposit. In an emergency, you can access your funds
while your Fixed Deposit continues to earn high interest.
HDFC Bank Plus: Apart from Regular and Premium Current
accounts we also have HDFC Bank Plus, a Current Account and
then some more. You can transfer up to Rs. 50 lakh per month at no
extra charge, between the four metros. You can also avail of cheque
clearing between the four metros, get cash delivery/pickup upto Rs.
25,000/-, home delivery of Demand Drafts, at-par cheques,
outstation cheque clearance facility, etc.
Demat Account: Conduct hassle-free transactions on your shares.
You can also access your Demat Account on the Internet.

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Innovative Services For The Convenience Of Customers :

PhoneBanking: 24-hour automated banking services with 39


PhoneBanking numbers available.
ATM 24-hour banking: Apart from routine transactions, you can
also pay your utility bills and transfer funds, at any of our ATMs
across the country all year round.
Inter city banking: Access your account from any of our 502
branches in 220 cities.
Net banking: Access your bank account from anywhere in the
world, at anytime, at your own convenience. You can also view
your Demat Account through NetBanking.
International Debit Card: An ATM card you can shop with all
over the country and in over 140 countries with. You can spend in
any currency, and pay in Rupees.
Mobile Banking: Access your account on your mobile phone
screen at no airtime cost. Use SMS technology to conduct your
banking transactions from your cell phone.
Bill Pay: Pay your telephone, electricity and mobile phone bills
through our ATMs, Internet, phone or mobile phone. No more
standing in long queues or writing cheque
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INTRODUCTION TO TOPIC
VARIOUS TYPES OF LOANS
PERSONAL LOANS
The procedure of HDFC Personal loans is simple, documentation is
minimal and approval is quick. The overview of HDFC Personal Loans is
as below:FEATURES & BENEFITS:
1. Borrow up to Rs 10, 00,000 for any purpose depending on your
requirements.
2. Flexible Repayment options, ranging from 12 to 48 months.
3. Repay with easy EMIs.
4. One of the lowest interest rates.
5. Hassle free loans - No guarantor/security/collateral required.
6. Speedy loan approval.
7. Convenience of service at your doorstep.
8. Customer privileges
i.

If the applicant is an HDFC Bank account holder, there are


special rate for them.

ii.

If the applicant is an existing Auto Loan customer with a


clear repayment of 12 months or more from any of HDFC's
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approved financiers or HDFC Bank , they can get a hassle free
personal loan (without income documentation).
iii.

If the applicant is an existing HDFC Bank Personal Loan


customer with a clear repayment of 12 months or more, the Bank
can Top-Up their personal loan.

Eligibility & Documentation


Salaried Individuals
Self employed (Professionals)
Self Employed (Individuals)
Self Employed (Pvt Cos and Partnership Firms)
SALARIED INDIVIDUALS:
Salaried Individuals include Salaried Doctors, CAs, employees of select
Public and Private limited companies, Government Sector employees
including public sector undertakings and central, state and local bodies:
Eligibility Criteria:

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 60 years

Minimum employment: Minimum 2 years in employment and


minimum 1 year in the current organization

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Minimum Net Monthly Income : Rs. 7,000 p.m (Rs. 6,000 in select
cities)

Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving License)

Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport


copy/Trade license /Est./Sales Tax certificate)

Bank Statements (latest 3 months bank statement / 6 months bank


passbook)

Latest salary slip or current dated salary certificate with latest Form
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SELF EMPLOYED:
Self employed (Professionals) include self - employed Doctors,
Chartered Accountants, Engineers, MBA Consultants, Architects, and
Company Secretaries.
Eligibility Criteria:

Minimum age of Applicant: 25 years

Maximum age of Applicant at loan maturity: 65 years

Years in business: Minimum 3 years in current business and 5


years total business experience

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Minimum Annual Income: Rs 60000 p.a. taxable income for


Doctors and CAs. Rs 100,000 p.a. taxable income for Engineers,
MBA Consultants, Architects, CS.

Documents required:

Proof of Identity: Passport Copy, Voters ID card, Driving License.

Address Proof: Ration card, Telephone, Electricity Bill, Rental


agr, Passport copy, Trade license, Est. /Sales Tax certificate.

Bank Statements: latest 6 months bank statement /passbook.

Latest ITR along with computation of income, B/S & P&L a/c for
the last 2 yrs. certified by a CA

Qualification proof of the highest professional degree

Self Employed (Individuals) include self-employed - Sole proprietors,


Partners & Directors in the Business of Manufacturing, Trading or
Services.
Eligibility Criteria:

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 65 years

Years in business: 5 yrs continuous business experience

Minimum Annual Income: Rs. 1, 00,000 p.a.

Documents required:
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Proof of Identity: Passport Copy, Voters ID card, Driving License.

Address Proof: Ration card, Tel, elect. Bill, Rental agreement,


Passport copy, Trade license, Establishment/Sales Tax certificate.

Bank Statements: latest 6 months bank statement, passbook.

Latest ITR along with computation of income, B/S & P&L a/c for
the last 2 yrs. certified by a CA

Proof of continuation: Trade license, Establishment /Sales Tax


certificate.

Other Mandatory Documents: Sole Prop. Declaration Or


Certified

Copy

of

Partnership

Deed,

Certified

Copy

of

Memorandum of association & Articles of Association & Board


resolution.
Self Employed (Private Companies and Partnership Firms) include
Private Companies and Partnership firms in the Business of
Manufacturing, Trading or Services.
Eligibility Criteria:

Years in business: Minimum of 3 years in current business and 5


years total business experience

Business must be profit making for the last 2 years

Minimum Annual Income: Rs 100000 p.a.

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Documents required:

Address Proof: Ration card Tel/elect. Bill, Rental agr. Passport


copy, Trade license, Est., Sales Tax certificate.

Bank Statements: latest 6 months bank statement /passbook.

Latest ITR : Along with computation of income, B/S & P&L a/c
for the last 2 yrs. certified by a CA

Proof of continuation: Trade license /Establishment /Sales Tax


certificate.

Other Mandatory Documents: Sole Prop. Decl. Or Cert. Copy of


Partnership Deed, Certified true copy of Memorandum & Articles
of Association (certified by Director) & Board resolution
(Original).
FEES & CHARGES FOR PERSONAL LOAN
Description of Charges

Loan Processing Charges

Upto a maximum 2% of the loan amount

Pre-payment charges

Upto 4% of the Principal

Outstanding
No Due Certificate /
No Objection Certificate
Solvency Certificate
Charges for late payment

(NOC)

Nil

Not applicable
@ 24 % p.a on amount outstanding
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of EMI

from date of default

Charges for changing from

Not applicable

fixed to floating rate of interest


Charges for changing from

Not applicable

floating to fixed rate of interest


Stamp Duty & other statutory

as per applicable laws of the state

Charges
Credit assessment charges

not applicable

Non standard repayment charges

not applicable

Cheque swapping charges

Upto Rs 500/- per event

Loan cancellation / re-booking charges Upto Rs 1000// Re-scheduling


Bounce Cheque Charges

Upto Rs 450/- per Bouncing

Statement Charges (per statement)/

Upto Rs 500/-

Repayment Schedule
Legal / incidental charges

at actual

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HOME LOANS
Features & Benefits:

Home Loan - HDFC offers home loans for individuals to purchase


(fresh / resale) or construct houses. Home loans can be applied for
individually or jointly. HDFC finances up to 85% maximum of
the cost of the property (Agreement value + Stamp duty +
Registration charges).

Home Improvement Loan - HIL facilitates internal and external


repairs

and

other

structural

improvements

like

painting,

waterproofing, plumbing and electric works, tiling and flooring,


grills and aluminium windows. HDFC finances up to 85% of the
cost of renovation (100% for existing customers).

Home Extension Loan - HEL facilitates the extension of an


existing dwelling unit. All the terms are the same as applicable to
Home Loan.

Land Purchase Loan - Be it land for a dream house, or just an


investment for the future, HDFC Land Purchase Loan is a
convenient loan facility to purchase land. HDFC finances up to
70% of the cost of the land (Conditions Apply). Repayment of the
loan can be done over a maximum period of 10 years.
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Choose from Fixed Rate or Floating Rate with options to
structure your loan as Partly Fixed or Partly Floating.

Flexible repayment options to suit your individual needs.


Loan cover Term Assurance Plan - HDFC Standard Life
Insurance Company Ltd. offers an insurance plan*, which is
designed to ensure that life's uncertainties do not affect your
family's interests and your precious home. LCTAP provides a
lump-sum payment on the unfortunate demise of the life assured.
This pure risk plan is designed in a way that the cover decreases as
you repay your home loan making it a low cost premium insurance
plan.
Automated Repayment of Home loan EMI - You can give HDFC
standing instructions to repay your Home Loan EMIs directly from
your HDFC Bank Savings Account, thus, saving you the trouble of
procuring, signing and tracking post-dated cheques.
HDFC also offers In-house scrutiny of Property documents for
your complete peace of mind.
Customer privileges - If you are an existing HDFC Bank Home
Loan customer, you can avail of other loans (such as Personal
Loans, Car Loans, Two-wheeler Loans and Loan against securities)
at lower interest rates.
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TWO WHEELER LOAN
Features & Benefits:

Flexible repayment options:

ranging from 12 to 48 months

available even at the point of purchase.

Repay through post-dated cheques: With easy EMIs. Calculate


your EMI

Hassle free loans - No guarantor required.

Speedy loan approval.

Available for almost all models at attractive interest rates.


Free gifts from time to time on approval of your Two Wheeler Loan.

Fast Track - If a spot approval is what you need, this highly


flexible scheme gets you a loan of up to 70% with minimum interest
rates.

Easy Loan - This great scheme gets you a loan of upto up to 85%
with minimal documentation. All you need as a Surrogate Income
proof is:

A copy of credit card and credit card billing statement for the last 2
months OR

- A repayment track record OR


- Last 3 months bank statements.
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Eligibility & Documentation
Eligibility Criteria;
1. You are a salaried or self-employed individual.
2. You are between 21 and 60 years of age (Salaried Individual) and
21 and 65 years of age (Self Employed).
3. Your minimum gross income is equivalent to Rs. 54,000/- p.a. if
you reside in Mumbai, Delhi, Chennai, Bangalore, Calcutta, Pune
and Rs. 42,000/- p.a. for all other cities.
4. You have been residing for at least 1 year in the city.
5. At least 1 year at the given residence address (In case of transfer
from other location with less than 1 year at current location - please
provide relevant documents to the bank during loan approval
stage).
6. You have been working for at least 1 year.
7. You have a phone at your residence or office.
Documentation Required:
Applying for a Two Wheeler Loan is absolutely simple. All you need is:

Proof Of Identity : Any one of Passport Copy/ Photo Credit cardfront & reverse/ Voters ID card/ Driving License/ PAN card/ Copy of
Company ID card of MNC/ Public Ltd./ PSU/ Govt. company/ Ration
Card (If Photo is given).
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Address Proof : Any one of Passport Copy/ Voters ID card/


Driving License/ Rental agreement/ Telephone Bill/ Electricity bill/
Gas Connection Bills/ Ration Card/ Sale deed/ Property purchase
agreement/ Credit Card billing statement (latest)/ LIC policy/ Letter
from Company or Company provided Accommodation (List of the
company's as per the Banks List- ID card of MNC/ Public Ltd.,/ PSU/
Govt. Company Containing the residence address), Address proof in
the name of the applicant's Spouse or parents name is acceptable.

Income Proof for Salaried: Latest Salary slips for Govt.


employees; If Salary slip is not available, only salary certificate to be
accepted with deductions.

For Partnership/ Proprietary firms & Pvt. Ltd. Co's- Salary


Certificate to be accepted with the following mitigants: Salary
Certificate to clearly state the deductions, Name & Designation of the
authorized signatory.

For Self-Employed - Copy of the latest I. T. return.

Fees & Charges for Two Wheeler Loans


Description of Charges
Loan Processing Charges

2% or Rs 500/-, whichever is higher

Pre-payment charges

3%

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No Due Certificate / No Objection

Nil

Certificate (NOC)
Duplicate no due certificate / NOC

Rs 250/-

Solvency Certificate

NA

Charges for late payment of EMI

2.50 % per month on overdue

principal
Charges for changing from fixed

NA

to floating rate of interest


Charges for changing from

NA

floating to fixed rate of interest


Stamp Duty & other statutory charges as per applicable laws of the state
Credit assessment charges

Rs 100/-

Non standard repayment charges

Rs 250/-

Outstation clearing charges

Rs 25/- per cheque or as per actual


Whichever is higher

Cheque swapping charges

Rs 500/-

Loan cancellation / re-booking charges

Rs 1000/-

Bounce Cheque Charges

Rs 450/-

Statement Charges (per statement)

Rs 500/-

Duplicate Repayment Schedule charges

Rs 500/-

Legal, Repossession & Incidental charges

at actual

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NEW CAR LOANS


Features & Benefits
1. Covers the widest range of cars and multi-utility vehicles in India.
2. Avail 100% finance on your favourite car.
3. Flexible repayment options, ranging from 12 to 84 months.
4. Borrow up to 3 times your annual salary (for salaried
professionals) and 6 times your annual income (for self employed
professionals)*.
5. Speedy processing - within 48 hours.
6. Repay with easy EMIs.
7. Attractive car loan plans - To Fastrack your loan, just choose
the plan that is right for you.
8. Attractive Interest rates
9. Hassle-free documentation.

Customer Privileges
If you are an HDFC Bank account holder, HDFC has special rates for
you.

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If you have had a Preferred Account or a Corporate Salary
Account with HDFC Bank for more than six months, you can get fast
approvals on your loans with minimal documentation.
If you are an existing HDFC Bank Car Loan customer with a clear
repayment of 12 months or more HDFC can Top-Up your car loan to
the extent of the original loan value.

Eligibility & Documentation


Salaried Individuals
Self Employed
Partnership Firms
Private Limited Company
Public Limited Company
Salaried Individuals
Eligibility Criteria:

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 58 years

Minimum employment: 1 year in current employment and


minimum 2 years of employment

Minimum Annual Income: Rs 100000 net annual income

Telephone: Must at residence


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Documents required:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving


license( Laminated, Recent, Legible)

Income Proof: - Latest salary slip with form 16.

Address Proof: - Ration card/Driving license/Voters card/passport


copy/telephone bill/ electricity bill/Life insurance policy PAN
Card.

Bank Statement:- Not mandate


Self Employed

Eligibility Criteria:

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 65 years

Minimum employment: At least 3 years in business

Minimum Annual Income: Net profit Rs. 60000 p.a for standard
cars and Rs.100000 p a for mid-sized and premium cars

Telephone: Must at residence

Documents required:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving


license( Laminated, Recent, Legible)

Income Proof:- Latest ITR


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Address Proof:- Ration card/Driving license/Voters card/passport


copy/telephone bill/ electricity bill/Life insurance policy PAN Card

Bank Statement: - Waived for small cars, for mid - sized and
premium cars if income Is greater than Rs 1.5 lacs then bank
statement requirement can be waived.

Partnership Firms

Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and
Rs.100000 p a for mid-sized and premium cars

Minimum turnover: Turnover Rs 4.5 lacs

Telephone: One phone at least at business and at residence of the


loan executing partner

Documents required:

Proof of Identity:- NA

Income Proof:- Audited balance sheet, Profit & loss Account for
latest two years and the latest 2 years IT returns of the company

Address

Proof:-

Telephone

Bill/Electricity

Bill/Shop

&

Establishment Act certificate/SSI registered certificate/Sales Tax


certificate

32

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Bank Statement:- Waived for small cars, for mid - sized and
premium cars if income Is greater than Rs 1.5 lacs then bank
statement requirement can be waived
Private Limited Company

Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and
Rs.100000 p a for mid-sized and premium cars

Minimum turnover: Turnover Rs 4.5 lacs

Telephone: One phone at least at business premises

Documents required:

Proof of Identity:- NA

Income Proof:- Audited balance sheet, Profit & loss Account for
latest two years and the latest 2 years IT returns of the company

Address

Proof:-

Telephone

Bill/Electricity

Bill/Shop

&

Establishment Act certificate/SSI registered certificate/Sales Tax


certificate

Bank Statement:- NA
Public Limited Company:

Eligibility Criteria:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and
Rs.100000 p a for mid-sized and premium cars
33

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Minimum turnover: Turnover Rs 4.5 lacs

Telephone: One phone at least at business premises

Documents required:

Proof of Identity:- NA

Income Proof:- Audited balance sheet, Profit & loss Account for
latest two years

Address

Proof:-

Telephone

Bill/Electricity

Bill/Shop

&

Establishment Act certificate/SSI registered certificate/Sales Tax


certificate

Bank Statement:- NA
Fees & Charges for New Car Loans

Description of charges

New Car Loans

Cheque bouncing charges

Rs. 450/-

FC Charges

4 % of POS for preclosures


With 1 year from 1st EMI
3% of POS for preclosures

after 1 year from 1st EMI


Stamp Duty

At actual

Late Payment Penalty

2% per month

34

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Processing fees

Rs. 400/-

ECS / SI Charges

Rs. 500/-

Agri /PSL Charges

Rs 2000/-

CPV Charges

Rs 200/-

Cheque swapping charges

Rs 500/-

Loan cancellation / re-booking charges

Rs 1000/-

Bounce Cheque Charges

Rs 450/-

Statement Charges (per statement)

Rs 500/-

Duplicate Repayment Schedule charges

Rs 500/-

Legal, Repossession & Incidental charges

at actual

Duplicate no due certificate / NOC

Rs 500/-

EXPRESS LOANS
35

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HDFC now offer Express Loans to help fulfill all your needs. The
procedure is simple, documentation is minimal and approval is quick.
Features & Benefits:
1. Borrow from Rs 10,000/- to 75,000/- for any purpose depending
on your needs.
2. Flexible repayment options, ranging from 12 to 36 months.
3. Repay with easy EMIs.
4. One of the lowest interest rates in the market.
5. Hassle free loans - No guarantor/security/collateral required.

Customer Privileges:
If you are an HDFC Bank account holder, HDFC has special rates for
you.

ELIGIBILITY AND DOCUMENTATION FOR EXPRESS LOANS


1. Salaried Individuals
2. Self Employed (Individuals) - filing I.T. Returns
3. Self Employed (Individuals) - Not filing I.T. Returns

Eligibility Criteria:
36

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1.

Salaried Individuals:
Salaried Individuals including employees of Public and Private
limited companies / Partnership Firms / Proprietorship Firms,
Government

Sector

employees

including

public

sector

undertakings and central, state and local bodies:

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 60 years

Minimum employment: 2 years total employment and 1 year


employment with the current employer

Minimum Net Monthly Income: Rs. 4,000 p.m

Documents required:

Proof of Identity: Passport Copy/ Voters ID card/ Driving License/


Pan card/ Credit Card with photo/ Company ID card of MNC/
Public Ltd./ PSU/ Govt. company/ Ration Card (If Photo is given)/
Photo attested by Bankers.

Address Proof: Ration card Tel/elect. Bill/ Rental agr. / Passport


copy/Trade license /Est./Sales Tax certificate.

Bank Statements: latest 3 months bank statement /passbook. Age


of bank A/C should be 6 months.

Latest 3 months salary slip or current dated salary certificate or 3


Salary credits in the bank A/C
37

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2.

Self Employed (Individuals):


Self Employed (Individuals) - filing I.T. Returns - include selfemployed - Sole proprietors, Partners & Directors in the Business
of Manufacturing, Trading or Services

Minimum age of Applicant: 24 years

Maximum age of Applicant at loan maturity: 65 years

Minimum employment: 2 yrs continuous employment

Minimum Annual Income: Rs. 50,000/- p.a.

Documents required:

Proof of Identity: Passport Copy/ Voters ID card/ Driving License/


Pan Card/ Cr. Card with photo/ Ration card (If Photo is given)
/Photo attested by Bankers.

Address Proof: Ration card Tel/elect. Bill/ Rental agr. / Passport


copy/Trade license /Est./Sales Tax certificate.

Bank Statements: latest 3 months bank statement /passbook. Age


of Bank A/C should be 6 months.

Last

years

ITR:

along

with

computation

of

income/P&L/Balance Sheet.
Self Employed (Individuals) - Not filing I.T. returns - include selfemployed - Sole proprietors, Partners & Directors in the Business of
Manufacturing, Trading or Services
38

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Minimum age of Applicant: 26 years

Maximum age of Applicant at loan maturity: 65 years

Minimum employment: 3 yrs continuous employment

Documents required:

Proof of Identity: Passport Copy/ Voters ID card/ Driving License/


Cr. Card with photo/ Photo attested by Bankers.

Address Proof: Ration card Tel/elect. Bill/ Rental agr. / Passport


copy/Trade license /Est./Sales Tax certificate.

Bank Statements: latest 6 months bank statement /passbook.

Age of Bank A/C should be 1 year.

Fees & Charges for Express Loans


Description of Charges

Loan Processing Charges

4%

Pre-payment charges

4% (pre-payment is allowed
39

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Only after 6 months)
No Due Certificate / No Objection

Nil

Certificate (NOC)
Duplicate no due certificate / NOC

Rs 250/-

Solvency Certificate

NA

Charges for late payment of EMI

2 % per month on overdue

Principal
Charges for changing from fixed
to floating rate of interest

NA

Charges for changing from


floating to fixed rate of interest

NA

Stamp Duty & other statutory charges as per applicable laws of the state
Credit assessment charges

Rs 100/-

Non standard repayment charges

Nil

Outstation clearing charges

NA

Cheque swapping charges

Rs 500/-

Loan cancellation / re-booking charges

Rs 1000/-

Bounce Cheque Charges

Rs 450/-

Statement Charges (per statement)

Rs 500/-

Duplicate Repayment Schedule charges

Rs 500/-

Legal, Repossession & Incidental charges

at actual

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Note:

The

above

charges

are

applicable for each type of charge.

41

the

maximum

charges

HH
LOAN AGAINST SECURITIES

With HDFC Bank's Loan against Securities, you can get an


overdraft against your securities like Equity Shares, Mutual Fund Units,
GOI Relief Bonds, LIC Policies, NSC, KVP, UTI Bonds (6.60% ARS &
US64 Bonds) and Gold Deposit Certificates, while still retaining
ownership. And the best part is that you can continue to enjoy all your
shareholder benefits such as rights, dividends and bonuses.Loan available
to NRIs against Shares, Mutual Funds, US64 Bonds, UTI 6.60% ARS
Bonds.
Features & Benefits:
You can enjoy the benefits of your securities and still avail a loan on the
same.
1. No EMI's
2. No Post Dated cheques
3. No Pre-payment charges
4. Interest charged only on utilized amount Upto 90% loan
5. Exhaustive number of approved securities
6. Overdraft facility can be availed against pledge of:
Mutual Fund units* - Mutual Funds up to 50% of NAV (Net Asset
Value).
42

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GOI Relief Bonds
LIC Policies
National Savings Certificate(NSC),
Kisan Vikas Patra(KVP)
UTI Bonds(6.60% ARS Bonds & US64 Bonds)
Single Scrip Lending - Lending up to 50% of the value with any
Depository Participant. (Please contact us to know the drawing power
of the scrips).
Minimum loan amount: Rs. 50,000/-

E-Instant Loans:

Online eligibility approval in 60 seconds. Preferential


rate of interest for online applications.

Pay interest only on the amount outstanding and only for the time
you use it.
Interest is calculated on the daily outstanding balance and debited
to your account every month end.
Shares can be pledged from any Depository (NSDL or CDSL) and
any Depository Participant across the country.
For availing the overdraft facility, the securities need not necessarily
be in your name.

43

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To receive the overdraft amount, a Current Account with an
overdraft limit is created in your name. This entitles you to all the
Current Account benefits like FREE International Debit Card, FREE
PhoneBanking, And FREE NetBanking.

Special Benefits: If you have a Loan against securities from any other
bank, simply transfer the loan to us at preferential interest rate.
Eligibility and Documentation For Loan Against Securities:

Eligibility Criteria:
You must be a resident of India (loans cannot be given to minors, Hindu
Undivided Families, NRIs, companies, sole proprietorship or partnership
firms).
You can pledge securities from the Banks approved list only.
Approved Demat Shares
Approved Mutual Funds
Approved LIC Policies
Securities should be in your name (Securities in the name of
minors, Hindu Undivided Families, NRIs, companies, partly paid up, or
shares in the name of individuals in companies of which they are
Directors/ Promoters cannot be accepted).

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Documentation Required:
Address proof
Passport
Telephone bill
Electricity Bill
Ration card
Voters ID / Election card accompanied by self signed cheque
Letter from the society (only Registered societies)
Residence Registration documents / Ownership proof copy
Lease deed / Rent agreement copy Mobile post paid bill-Paid be more than 3 months old
Letter from any recognized public authority -Letter should not be
more than 3 months old
Letter from existing bank (as per given format)-Letter should not
be more than 3 months old. Letter should not be from Co-operative
banks.
PAN Card with covering letter giving full address.
Post Office passbook with full address-Updations in passbook
should be current - less than 1 month old.
LIC Policy or receipt-Latest as per next premium due date on the
receipt.
45

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Letter from employer certifying address of the employee-Letter
should not be more than 3 months old, letter should be on letterhead of the company, letter should not be from pvt. Ltd. company/
proprietary/ partnership firm. Letter can be from govt. - recognized
organizations like universities, colleges, education institutes,
schools. Letter can be from Govt. Organizations / Defence
Organizations on plain paper but with the seal of the organization
and with the Ashoka emblem.
Demat Account Statement with complete address should be less
than 3 month old.-Letter should not be more than 3 months old,
letter should be on letter-head of the company, and letter should not
be from pvt. Ltd. company/ proprietary/ partnership firm. Letter
can be from govt. - recognized organizations like universities,
colleges, education institutes, schools. Letter can be from Govt.
Organizations / Defence Organizations on plain paper but with the
seal of the organization and with the Ashoka emblem.
Municipal / Corporation / Property / Panchayat Tax payment
receipt with full address-Latest receipt should not be more than 1
year old.
Documentation for Identification proof
Passport

46

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PAN Card
SEBI Mapin Card
Driving License
Voter ID card / Election Card
Government (Central or State) ID Card Should be current and valid
Photo Credit Card Signature to match with AOD & only if
accompanied by a self-signed cheque and latest statement
Banker's Verification: Only with self signed cheque
Company ID card: Only from Public Ltd. companies / Govt. &
defence

organizations,

government

recognized

educational

institutes and government undertakings.


Bank Pass Book with Photograph duly stamped & signed by the
issuing bank's official.
Pension Book Updated to within 2 months from date of KYC
Photo Ration Card Where applicable
Letter from existing bank, where the existing bank of the customer
has verified the name, address, photograph and signature of the
customer Documentation for Signature Verification proof
Signature Verification proof
Self-cheque
PAN Card
47

HH
IT Return acknowledgment for the latest assessment year
Passport Current and valid
Driving License
Banker's verification
Ration card with signature
Credit Card with printed / embossed signature and latest statement
HDFC Bank's banker verification
Letter from existing bank certifying signature, photograph, name
and address
Fees & Charges for Loan against Security
Description of Charges

Loan Against Security

Loan Processing Charges

Upto 2% of the overdraft limit

Pre-payment charges

Nil

Duplicate no due certificate / NOC

Nil

No Due Certificate / No Objection


Nil
Certificate (NOC)
Solvency Certificate

Not Applicable
18% p.a. on the overdrawn amount

Charges for late payment of EMI /


for the number of days that the
overdue amount
account is overdrawn
Charges for changing from fixed to
Not applicable
floating rate of interest
Charges for changing from floating Not applicable

48

HH
to fixed rate of interest
Stamp Duty & other statutory
As per applicable laws of the state
charges
RBI Maturity / Collection charges

Rs. 250 per certificate

LIC policy Maturity / Collection


Rs. 100 per certificate
charges
Brokerage as per charges by the
Sales of security in the event of
broking firm along with other
default
statutory levies
Legal & Incidental charges

At actual

Renewal Charges (annual)

Upto 0.5% of the limit amount


of Rs. 50 per certificate (subject to a

NSC / KVP Maturity Charges

maximum of Rs. 1500 per maturity


collection)

LOAN AGAINST PROPERTY


HDFC Bank brings to you Loan against Property (LAP). You can
now take a loan against your residential or commercial property, to
expand your business, plan a dream wedding, fund your child's education
and much more.
You can depend on HDFC to meet all your business requirements
even to purchase a new shop or office for your business. Loan to
purchase Commercial Property (LCP) is a specially designed product to

49

HH
help you expand your business without reducing the capital from your
business.
Features & Benefits:
1.

Loans from Rs. 2 Lacs onwards depending on your needs.

2.

Borrow up to 60% of market value of the property.

3.

Flexibility to choose between an EMI based loan or an Overdraft We also offer to you overdraft against your self-occupied residential
or commercial property and you save money by paying interest only
on the amount utilized.

4.

High tenure loans for ease of repayment.

5.

Attractive interest rates.

6.

Simple and speedy processing.

7.

Specially designed products for Self Employed.

Eligibility and Documentation for Loan against Property


1. Salaried Individuals
Documents required:
Proof of Residence - Any one of Ration Card / Telephone
Bill / Electricity Bill / Voters Card.

50

HH
Proof of Identity - Any one of Voters Card / Drivers License
/ Employers Card.
Latest Bank Statement: / Passbook (where salary / income
is credited for past 6 months.
Latest 3 Months Salary Slip with all deductions & last 2
years Form 16 Copies of all Property Documents.
2. Self Employed
Documents required:
Certified Financial Statement for the last 2 years.
Proof of Residence - Any one of Ration Card / Telephone Bill /
Electricity Bill / Voters Card.
Proof of Identity - Any one of Voters Card / Drivers License /
Employers Card.
Latest Bank Statement / Passbook (where salary / income is
credited for past 6 months Copies of all Property Documents.
Fees & Charges for Loan against Property:
Overdraft
Description
Charges

of Loan
Property

Against

Against Property
Commercial
against Property
51

/ Loan Against Rent


OD Receivables

HH
Loan

Processing
2%

2%

2%

Charges
4%

of

the

4%

of

the

4% of the operating
outstanding

outstanding

Pre-payment

limit prevailing at
principal

(pre-

charges

principal
the

time

payment is allowed

(pre-

of
payment is allowed

prepayment
only after 6 months)

only after 6 months)

No Due Certificate /
No

Objection Nil

Nil

Nil

Not applicable

Not applicable

Certificate (NOC)
Solvency Certificate Not applicable

2 % per month on 18% penal interest 2 % per month on


Charges

for

late
overdue

EMI applicable

on overdue

EMI

payment of EMI
amount
Charges

overdue amount

amount

for

changing from fixed 0.25% of the loan Only Floating rate Only Floating rate
to floating rate of amount

option

option

interest
Charges
changing

for
from 1.5% of the loan Only Floating rate Only Floating rate

floating to fixed rate amount

option

option

Rs 250/-

Rs 250/-

of interest
Duplicate no due
Rs 250/certificate / NOC
Stamp Duty & other As per applicable As per applicable As per applicable
statutory charges
Cheque

laws of the state

swapping Rs 500/-

laws of the state

laws of the state

Rs 500/-

Rs 500/-

52

HH
charges
Bounce

Cheque
Rs 450/-

Rs 450/-

Rs 450/-

Rs 500/-

Rs 500/-

Rs 500/-

Rs 500/-

Rs 500/-

Rs 500/-

& At actual

At actual

At actual

Rs.5000 p.a.

Rs.10000 p.a.

Charges
Statement Charges
(per statement)
Duplicate
Repayment
Schedule charges
Legal
Repossession

Incidental charges
Account
Maintenance

NIL

Charges

Note:
The above charges are exclusive of taxes and statutory levies as
applicable from time to time. The above charges are the maximum
charges applicable for each type of charge.

53

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OBJECTIVES OF THE STUDY

To Study the different factors of various loan provided by HDFC


Bank.
To measure the effect of income on taking the loan.
To understand what benefits people seek out of taking loan from
HDFC.
To identify the most effective feature of the products and services
of private sector bank providing loan services.
To identify the most effective communication medium for
providing loan companies.

54

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RESEARCH METHODOLOGY
Marketing research is a systematic and objective study of problem
pertaining to the marketing of goods and services. Market research
specifies the information

required to address these issues; designs the

method for collecting information; manages and implements the data


collection process; analyses of the results and communication the
findings and their implications.
RESEARCH DESIGN
A descriptive research is carried with a definite frame work for data
collection. This frame work constitutes the research for the present study
and is conclusive as it matches with the objective of the study. As the
objective clearly defined and the research is base on primary data and
secondary data. The research for the project was conducted as follows:
Primary Data
Primary data is collection through survey. A Sample size of 150 was
taken. The convenient sampling was done. The questionnaire consisted of
questions regarding measurement of different factors that affect the
purchase of different Loan facilities.
Sampling
The sample size is selected by using the quota sampling with an element
of stratification from the area of research. As the persons contacted were
55

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limited, that too from a very large area, it may not appear to be the true
representative of the universe.
Criteria for Sample was
Age

20-60 yrs

Sex

Male/ female

Source of Income :

Service / Business

Desk Research
The desk research involved collection of secondary information from:
1.

Internet

2.

Magazines

3.

Newspaper

4.

Journals

56

HH
ANALYSIS AND INTERPRETATION
In the past decade, the world and India have seen momentous changes
taking place in the business environment. The winds of change or reforms
have been sweeping the economic landscapes relentlessly. The business
environment and the organization have been buffeted by the impact of
change. Internationalization and them emergence of information
technology are the twin forces that are shaping the destiny of our great
country. These changes are shaping the contours of the environment
outside and impacting the organizations within.
The questionnaire is designed in such a manner that it is selfexplanatory and the data thus collected has been a very comprehensive
one. There is lot of information and data, which was gathered together,
and we had a task of tabulating the whole data, then editing the data and
finally analyzing the data to come out with certain conclusion. In all
together, a questionnaire consisting of 14 questions. Collection of the data
from almost 150 people comprising from middle-income group and
above. The area of our concentration for data collection was mainly
YamunaNagar, Jagadhri.

57

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Q 1. Age:
(a)

20-25

(b) 26-30

(c)

31-35

(d) 36-40

(e)

40 & above

Analysis
Age Group
20 to 25
26 to 30
31 to 35
36 to 40
40 & above

Percentage
10%
6%
8%
14%
62%

Percentage

10%

6%
8%
14%

62%

20 to 25
26 to 30
31 to 35
36 to 40
40 & above

Interpretation: The above graph shows that most of the persons having
interest in the loans are in the age group of 40 yrs. & above.
Q. 2 Occupations
(a)

Business

58

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(b)

Service

Analysis
Business
Service

16%
84%

16%

Business
Service

84%

Interpretation: The above graph shows that the persons belonging to


service class are more aware of & interested in loan facilities provided by
the banks.

Q. 3. Which of the new bank you are aware of in providing different


loan services?

59

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Analysis
HDFC bank
ICICI bank
Others

50%
25%
25%

25%
HDFC
ICICI
50%

Others

25%

Interpretation: As per my analysis, most of the people are aware of


HDFC Banks loan options as compared to other banks.

Q.4

How did you come to know about the Companies providing

loan facility?
Analysis

Electronic Media
Print Media

35%
32%
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Through Agents
Others

20%
13%

13%
35%
20%

Electronic Media
Print Media
Through Agents
Others

32%

Interpretation: Above analysis shows that the most popular media


through which the people became aware of the loan facilities is Electronic
media.

Q. 5. Have you taken any loan from HDFC? If yes, which loan?
Analysis
Home loan
Personal Loan
Car Loan
Two Wheeler Loan

30%
9%
48%
13%

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HH

13%

30%

Home loan
Personal Loan
Car Loan

9%

48%

Two Wheeler Loan

Interpretation: Above analysis shows that the most of the people have
taken Car loan from HDFC i.e. car loan is the most popular loan of
HDFC Bank.

Q 6: Are you satisfied with HDFC Bank Loans services?


Ans: (a) Satisfied (b) Partially Satisfied (c) Not Satisfied
Objective: To know about the customers satisfaction level with PNB
Bank

62

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Interpretation: From above graph shows that HDFC Bank has successes
in keeping well with the customers expectation

Q 7: Do you wish to change your bank?


Ans: (a) Yes (b) Conditional (c) No
Objective: To know customers view on other bank

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Interpretation: Most of the customers do not wish to change their bank


for home loan services

Q 8: Have you taken loan from any other bank also?


Ans:

(a) Yes

(b) No

Objective: To know whether are engaged in taking loans from multiple


bank

64

HH

Interpretation: Above graph shows that 73% customers have not taken
loan from any other bank

Q 9: What make you choose a bank for loan?


Ans: (a) Better Services (b) Charges
Home

65

(c) Proximity to Your Office or

HH
Objective: To know factor that affect people choice to take loan from
bank

Interpretation: Above graph shows that charges factor plays the key role
in positively affecting customers preferences for taking loan

Q 10: What kind of bank would you prefer for loan?


Ans: (a) Public sector (b) Pvt. Sector (c) Cooperative Banks

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Objective: To know about the bank which proves to be reliable for
customers?

Interpretation: Above graph shows that most of the people find Public
Sector Banks as most relaible one

FINDINGS

67

HH
The most of the people have taken Car loan from HDFC i.e. Car
loan is the most popular loan of HDFC Bank.
The most popular media through which the people became aware
of the loan facilities is Electronic media.
Most of the people are aware of HDFC Banks loan options as
compared to other banks.
The persons belonging to service class are more aware of &
interested in loan facilities provided by the banks.
Most Of The People Find Public Sector Banks As Most Relaible
One
Charges Factor Plays The Key Role In Positively Affecting
Customers Preferences For Taking Loan.

LIMITATIONS OF THE STUDY

68

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Due to constraints of time & resources the present study is likely to suffer
from certain limitations some of these are mentioned so that study can be
understood in a proper perspective:
Area covered under the report is sample size was very small.
The research was carried out in a short period of 7-8 weeks as a
part of summer training. The project was completed within the
given time frame.
Some of the respondents of the survey were unwilling to give
information.
Sometimes wrong information was provided by respondents which
needed to be cross checked & verified.
Chances of biasness are there because of the use of convenient
sampling.
Some respondents were not available and thus needed data could
not be found.
It is fully computerized bank everything is centralized at there
Bombay Headquarter. Each & every formality is justified on the
request from Bombay Headquarter such as PIN request for ATM,
TIN for phone Banking using new cheque book, any problem in
account etc.

69

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SUGGESTIONS

Channel of Distributions
Distributions will be a key determinant of success for all insurance
companies regardless of age and ownership. There would be substantial
shifts in the distribution in insurance in India. Once Communication,
popularity and awareness of product are attained then the products can
move to remote channels such as telephone or direct mail. At the point,
buyers look for low price. Brand loyalty could shift from the insurer to
the seller. Recognizing this trend, the financial service industry
worldwide has successfully used remote distribution channels such as
telephone or the internets to reach more customers, cut out intermediaries,
and break down overheads and increase profitability.

Expectations of the Consumers


The customers are particularly expecting good pension plans, Car Loan,
Expenses loan, two wheeler loans. Similarly the customers expect
innovative products from the general for managing healthcare, property
loan and other products related to loans.

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Consumers Education
The existing level of awareness of the customers for insurance plans is
very low. Even the educated customers are ignorant about the various
products of the insurance. All the insurer should undertake the extensive
plan for education of consumers. The consumers organization and the
media also can play very important role in education of the consumers.

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CONCLUSION

My survey on HDFC Bank loans concluded that HDFC Banks


performance is rated as satisfactory.Executives have satisfactory
knowledge about products. HDFC Bank is preferred the most
because of higher returns and better plans and services. Customer
perception about the security of money invested is the public sector.
Customers feel that the strong feature of private bank is their service
and technology that they are offering.Lastly it is found that the entry
of private players has changed the customer service levels
considerably.

They have also devised innovative procedures to

increase their market share.

72

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BIBLIOGRAPHY

Books:
Research Methodology

-By C.R. Kothari

Business Research and Methods

-By Donald R. &

Schindler, cooper
Marketing Management

-By Philip Kotler

Magazine:
Business Today
Business World

Annual Report of HDFC Bank


Manuals
Brochures
Websites
www.hdfcbank.com
www.indiainfoline.com

73

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QUESTIONNAIRE
1. Age:
a) 20-25

b)

26-30

c) 31-35

d)

36-40

e) 40 & Above
2.

Your Occupation
a) Agriculture

b) Business

c) Service
3.

d) Professional

Which of the new companies are you aware of in providing


loan facility?
a. HDFC Standard Life
b. ICICI Prudential
c. Others

4.

How did you come to know about the Private Banks providing
Loans?

5.

a) Electronic Media

b) Print Media

c) Through Agents

d) Others

Have you take any loan facility? If yes, which loan?


(a) Personal Loan

b) Car Loan

c) Home loan

d) Two-Wheeler loan

6. Are you satisfied with PNB Bank Home Loans services?


(a) Satisfied
(b) Partially Satisfied
(c) Not Satisfied
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7. Do you wish to change your bank?
(a) No
(b) Conditional
(c) Yes
8: Have you taken loan from any other bank also?
(a) Yes

(b) No

9: What make you choose a bank for loan?


(a) Better Services
(b) Charges
(c) Time
(d) Proximity To Your Office or Home?
10: What kind of bank would you prefer for loan?
(a) Public sector
(b) Pvt. Sector
(c) Cooperative Banks

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