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A

PROJECT REPORT
ON
“STUDY OF HOME LOAN”
AT
LIC HOUSING FINANCE LTD. AREA OFFICE PIMPRI

BY
Mr. YASHWANTRAO PANDURANG LAVATE

UNDER THE GUIDANCE OF


PROF. S. P. DINGRE

SUBMITTED TO

“SAVITRIBAI PHULE UNIVERSITY OF PUNE”


IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD
OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)
THROUGH

AUDYOGIK SHIKSHAN MANDAL’s


INSTITUTES OF BUSINESS MANAGEMENT & RESEARCH
(I.B.M.R),
CHINCHWAD, PUNE. 411019.
2013-2015
DECLARATION

I YASHWANTRAO PANDURANG LAVATE, a student of MBA (2013-2015)


hereby declare that the, project report entitled
“STUDY OF HOME LOANS ”
is the authentic work done by me at
LIC HOUSING FINANCE LTD, PIMPRI, PUNE
Report is submitted in partial fulfillment of the requirement of the award of Master of
Business Administration (M.B.A.) degree abide by Savitribai Phule Pune University rules.

Yashwantrao Pandurang Lavate

MBA (Finance Management)

ASM’s IBMR Chinchwad, Pune.


ACKNOWLEDGEMENT

Devotion is important, knowledge is important, but this knowledge, devotion will be fruitless
if these factors are put in the wrong direction. So we desperately need a guide to make our
way clear in foggy situations. I have utilized this valuable suggestion in making my report
attractive and accurate. I am greatly indebted to all those, whose suggestion has formed the
bases of this report.

Firstly I would like to thank Mr. SHYAM GOWANE (Area Manager) LIC HOUSING
FINANCE LTD, PIMPRI, PUNE, for giving me the opportunity to work on this project.

Further, I extend my thanks to Mr. PANKAJ KORANE (Senior Associate) LIC


HOUSING FINANCE LTD, PIMPRI, PUNE, for being the source of inspiration and
guidance to me. It was their help and cooperation, which made me complete my project.

I am highly indebted to Ms. Sunita Sharma (Managing Director & Chief Executive
Officer) & Mr. S. K. Roy (Chairman) for his invaluable cooperation and his unending
support, for guiding me at every step.

Finally I would like thank to all respondent for their helpful criticism and useful suggestions,
which contributed towards successful completion of my project.

Yashwantrao Pandurang Lavate

MBA (Finance Management)

ASM’s IBMR, Chinchwad, Pune


INDEX

SR.NO. CHAPTER PAGE. No.


1 Executive Summary 1
2 Industry Profile & Organization Profile 3
3 Outline of Task 22
4 Research Methodology & Data Analysis & Interpretation 24
5 Activity Chart 47
6 Key Learning 49
7 Contribution to organization 51
8 Questionnaires & Web Sites Details 53
LIST OF TABLE

SR.NO. Table Name PAGE. No.


1 Rate of Interest 18
2 EMI Chart 21
3 Personal Discussion Format 35
4 Calculation Sheet Format 37
5 Basic Eligibility Chart 38
6 Basic Eligibility Chart 38
7 Basic Eligibility Chart 38
8 Business Incomes 39
9 Income from other Source Table 39
10 Ages Group 40
11 Annual Income 41
12 Own Property 42
13 Types of Property 43
14 Budget 44
15 Home Loan 45
16 Preferred Option Chart 46
17 Work Plan 48
LIST OF GRAPH

SR.NO. Graph Name PAGE. No.


1 Ages Group 40
2 Annual Income 41
3 Own Property 42
4 Types of Property 43
5 Budget 44
6 Home Loan 45
7 Preferred Option Chart 46
Chapter No 1

EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

As a part of the Curriculum of the MBA Programme of the SAVITRIBAI


PHULE PUNE UNIVERSITY. I underwent my summer Training for the Period of TWO
Months at LIC HOUSING FINANCE LTD, Pimpri, Pune. The aim behind is to let the
Students draw out the Difference & Similarities between the theoretical knowledge with the
actual Job conditions, so they can be able to Pursue & Cultivate Strategic decisions making
capabilities & establish themselves as capable Managers of tomorrow.
Each management student learns a lot during his two years of MBA program.
The (summer) project provides required practical training to student and gain the practical
knowledge of the topics learned in classroom and to find its relation with the real market
scenario.
Someone has greatly said that practical knowledge is far better than classroom
teaching. During this project I fully realized this and come to know about the present real
world of home loan sector. It includes all the activities involved in providing home loan
products to the final customers.
I am pleased to know about the consumers’ wants and competitors activities in
the real world of home loan sector. The subject of my study is to analyse the present home
loan sector and products offered by LIC by applying various tools like cold calling and
through direct interaction with customer’s. I have also done research on the customer
reaction, age group taken loan, property types, and different preferred option. his chosen LIC
housing finance & private home loan companies. The report contains first of all brief
introduction about the company.
I also put forward recommendations of the consumers and conclusions
that will help LIC to provide consumer satisfactory services in the home loan sector.
The project gives the live experience about the various aspects of the management
that is help full from future point of view. The project provides the opportunity to understand
the organization very closely.
Chapter No 2

INDUSTRY PROFILE & ORGANIZATION PROFILE


2.1 INTRODUCTION
The purchase or sale of a home or investment property is not only one of the
most important financial events in peoples’ lives, but also one of the most complex
transactions. As a result, people usually seek the help of real estate agents and brokers
when buying or selling real estate.
Real estate agents and brokers have a thorough knowledge of the real estate market in
their community. They know which neighbourhoods will best fit clients’ needs and
budgets. They are familiar with local zoning and tax laws, and know where to obtain
financing. Agents and brokers also act as an intermediary in price negotiations
between buyers and sellers. Real estate agents are usually independent sales workers
who provide their services to a licensed broker on a contract basis. In return, the
broker pays the agent a portion of the commission earned from the agent’s sale of the
property.
Property Service Division of LIC Housing Finance Limited deals with the same
business of real estate. The need of entering in this field was felt by LIC Housing
Finance Ltd due to increasing prospects in Real Estate business. There are many big
brands namely ICICI realty, HDFC Realty, Axis Bank Realty etc.
A new line of business by the name Property services Division is being launched
across the country in selected centres. The function of the Property services Division
includes all activities involved in enabling a prospective homebuyer select the
property up to taking the possession of the same. It is thus conceived to be a one-stop-
shop for all the advisory services related to the above. Property services division,
which offers investors and builders a single transparent platform to buy/sell office and
commercial spaces and residential apartments/flats.
This Year LIC Housing Finance Celebrate on 25th Anniversary on This
Year 19th June 2014. This Enjoy on All over India Celebration.
2.2 MEANING OF HOUSING FINANCE
The term housing finance is commonly referred to the loans availed by a household for the
purchase or construction of a housing unit. It involves mortgaging of the property as
collateral against which the loan has been taken. Originally, a mortgage was said to have
occurred when the owner pledged her right over an asset owned by her as a security with the
lender for availing a loan. However, as housing loans are given under the condition of
mortgaging the property for which the loan has been availed, the term mortgage finance has
become synonymous to housing finance.
Housing finance covers a wide range of issues, and the concept often varies in its coverage
across different countries; however, it has been defined mainly in terms of residential
mortgage credit.

“Boleat (1985) for instance describes housing finance in terms of the flow of funds to
home buyers”.
“According to Lea (2000) housing finance includes a broad array of institutional
arrangements which include both general and specialized institutions acting as primary or
secondary lenders, with the common purpose of channelling funds from savers to households
demanding housing loans”.
“Warnock and Warnock (2007) describe housing finance as the provision of long-term
financing for house purchase”.
“King (2009) refers to housing finance as the funds used for building and maintaining the
housing stock of a country”.
“Chiquier and Lea (2009) look at housing finance as a link between multi-sector issues
which are in a continuous process of change on account of the economic, cultural, and
regulatory environment of a country”.

They consider housing finance as encompassing more than residential mortgage credit
and include housing developer finance, rental finance as well as housing related micro-
finance within the scope of the term housing finance. Housing finance covers a wide range of
issues, and the concept often varies in its coverage across different countries; however, it has
been defined mainly in terms of residential mortgage credit.
2.3 History of LIC Housing Finance

 Launched in 1989 as per Companies Act, 1956 LIC housing finance has grown to be
one of the largest lender in home-finance market
 Promoted by LIC that helped in initial business functions. Finally after being
promoted as a company offering housing finance by LIC it went public in 1994.
 LIC Housing Finance news state that its authorized capital stands at Rs.150 crores or
Rs.150 million.
 Its shares are trade only in dematerialized form at both NSE and BSE.
 The company’s GDR was launched in 2004 and is listed on the Luxembourg Stock
Exchange.
 Presently, according to Lic housing finance news there are over 181 marketing units;
along with a wide network of 6 regional offices and over 13 back-offices, 773 direct
sales agents (DSA), 3400 home loan agents (HLAs) and 615 customer relationship
associates.
 The Company has set up a Representative Office in Dubai and Kuwait to cater to the
Non–Resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar
and Saudi Arabia. Today the Company has a proud group of over 10,00,000 prudent
house owners who have enjoyed the Company's financial assistance.
1989 - The Company was incorporated on 19th June as a public limited company. It
was promoted by LIC of India. The Company provide housing loans to individuals,
builders, development authorities, employers organisation etc.
- The Company has started various schemes: Griha Prakash a general scheme, Griha
Tara under which it accepts only Bima Sandesh Plan as Life Insurance Corporation,
Griha Shobha for NRIs and Griha Lakshmi for people to have a second house.
1994 - 30,057,900 No. of equity shares were issued at a premium of Rs 50/- per share
through public issue on 15th November 1994. The allotment was as follows;
1,082,000 shares to LIC on firm allotment basis and the balance 189,75,900 shares to
public (all were taken up).
1996- The Company has decided to carry out fund based and one-fund based
activities, viz., debt securitisation, lease and hire purchase, renting of properties and
giving guarantee to co-operate bodies.
2000- Crisil has assigned a AAA rating to the issue of mortgage backed pass
through certificate backed by mortgages orginated by the company.
2001 - The Company has launched its new scheme, Griha Vikas.
2002 - LIC Housing Finance Ltd has informed BSE that the Company has forfeited
1,25,300 equity shares due to non payment of allotment/call monies.
-LIC Housing Finance has approved for the take over of Individual Housing loan
portfolio of GLFL Housing Finance.
-Around 25 investors subscribed to the issue of confidentially placed debentures for
a total amount of Rs.392 cr of LIC Housing Finance Ltd.
-LIC Housing Finance Ltd has decreased its interest rates on housing loans by 25-50
basis points.
-Financial Institutions have increased their stake from 0.01% to 1.96% and Mutual
Fund companies have increased their stake from 0.35% to 1.06% in LIC Housing
Finance.
-LIC Housing Finance Ltd has decreased the floating rate of interest under
individual loan scheme to 9.5% from 11%.
-LIC Housing Financee signed a deed of assignment to take over individual housing
loan portfolio of Citibank N A.
-UTI and IFCI has been removed from the list of promoters of LIC Housing
Finance.
2003 - LIC Housing Finance has unveiled a new project for elderly people called
'LIC HFL Care Homes' .
-LIC Housing Finance Ltd has sanctioned 84,126 loans worth Rs.3265.78cr and
disbursed 76,663 loans worth Rs.2941.24cr under its Individual Loan Scheme.
-LICHFL has mobilised Rs.280cr for 15 years at 7% rate of interest through private
placement.
-Lic Housing Finance Ltd has informed that the shares of the company have been
delisted from The Stock Exchange - Ahmedabad w.e.f December 08, 2003.
2004 -Merill Lynch Capitat acquires LIC housing stake of 0.39%
-Templeton Asset Management buys 37,52,362 equity shares, representing 5.01% of
LIC Housing's total paid-up capital of Rs 74.9 crore
-LIC Housing Finance Ltd has informed that the shares of the Company has been
voluntarily delisted from the Delhi Stock Exchange (DSE) W.E.F. January 23, 2004.
-LIC Housing Finance shares delisted from Madras Stock Exchange
-Mr D Krishnan appointed as Chief Executive Officer
- LIC Housing Finance Ltd's (LICHFL) one-crore global depository receipts (GDR)
issue opened on August 27.
- Lists its maiden global offerings worth .85 million at the Luxembourg Stock
Exchange successfully.
-Introduces new product that starts as a fixed rate loan but contains an option to
convert it to a Floating rate loan at the end of five years, at the then prevailing rate.
2005 -Delist from The Calcutta Stock Exchange Association Ltd (CSE) with effect
from December 09, 2004.
-LIC Housing Finance launches loan product that eliminates the requirement of
charge on house financed.
-Goldman Sachs acquires share in LICHFL
2007- LIC Housing Finance to launch FD scheme -LIC Housing Finance to enter
into reverse mortgage product.
2008 -LIC Housing Finance Ltd has informed that the Board has appointed the
following persons as Directors on the Board of the Company on May 20, 2008
-Name of the Director: Shri. D K Mehrotra For the Position of : Managing Director
Change effective from: May 20, 2008.
- LIC Housing Finance Ltd has informed that the Board of Directors of the Company
has appointed following person as Director on the Board of the Company on July 01,
2008.
- Name of the Director: Shri A S Narayanamoorthy
- For the position of: Additional Director
- Change effective from: July 02, 2008
-LIC Housing Finance launches Reverse Mortgage for senior citizens
2009 - LIC Housing Finance cut interest rates for new loans by 0.5% where for
customers opting for floating rate loans between Rs 30 lakh and Rs 75 lakh, the new
rates will be 8.755 against 9.25%.
2010 - The Company is applying for a license with the Pension Fund Regulatory
Development Authority (PFRDA) to act as Aggregator under the, National pension
System (NPS) – Lite.
- LIC Housing Finance Ltd has decided to unveil a private equity fund focussed on
real estate development projects.
- LIC Housing Finance on October 27 has approved a stock split in the ratio of 1:5 to
boost the liquidity of its scrip.
-Company has splits its Face value of Shares from Rs 10 to Rs 2
2011 - Dinesh Kumar Mehrotra, Managing Director for international operations in
LIC, was appointed interim Chairman.
2012 - LIC Housing Finance has said that it has begun the process of raising funds
through Qualified Institutional Placements (QIPs).
2014 - 19-06-2014 25th year completed
- LIC housing finance Last 25 year Rs. 139000 Crore in Home Loan disbursement
- They are 11000 Representatives helping Indians own homes over the last 25 years
-They are more than 16.8 lakhs Families own homes with our support over the last 25
year.
2.4 Company Profile
LIC Housing Finance Ltd is one of the largest Housing Finance Company in India. The
company is engaged in the business of providing loans for purchase construction, repairs and
renovation of houses/flats to individuals, corporate bodies, builders and co-operative housing
societies and has its operations within India. They provide loans for homes, construction
activities, its corporate housing schemes. Around 89% of the loan portfolio derived from the
retail segment and the rest from large corporate clients. The main objective of the company is
providing long term finance to individuals for purchase / construction / repair and renovation
of new / existing (Resale) flats / houses. The company also provides finance on existing
property for business / personal needs and gives loans to professionals for purchase /
construction of Clinics / Nursing Homes / Diagnostic Centres / Office Space and also for
purchase of equipments. The company through their subsidiaries LICHFL Care Homes
Limited, is engaged in the business of setting up, running and maintaining assisted living
community centre/care homes for senior citizens; LICHFL Financial Services Ltd, is engaged
in the business of marketing various financial products and services, and LICHFL Asset
Management Company Ltd is engaged in business of managing, advising, administering
mutual funds, unit trusts, investment trusts and to act as financial and investment advisors and
render financial advisory services. The company possesses one of the industry's most
extensive marketing network in India. The company is having their registered and corporate
office at Mumbai. They have 7 regional offices, 13 back offices and 190 marketing units
across India. In addition the company has appointed over 1241 direct sales agents (DSAs),
6535 home loan agents (HLAs) and 782 customer relationship associates (CRAs) to extend
their marketing reach. They have set up a representative office in Dubai and Kuwait to cater
to the non-resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar
and Saudi Arabia. LIC Housing Finance Ltd was incorporated on June 19 1989. The
company was promoted by LIC of India and went public in the year 1994. The company is
recognized by National Housing Bank and listed on the National Stock Exchange (NSE) &
Bombay Stock Exchange Limited (BSE) and its shares are traded only in Demat format. The
GDR's are listed on the Luxembourg Stock Exchange. In the period of 2001, the company
launched their new scheme called Griha Vikas. In the year 2002, the company signed a deed
of assignment to take over individual housing loan portfolio of Citibank. In the year 2003,
they unveiled a new project for elderly people called LICHFL Care Homes. The company
launched their maiden GDR issue in the year 2004. Also, they introduced flexi-fixed scheme
offering fixed rate of interest for first five years and variable thereafter. In October 2005, the
company started offering of 'New Griha Laxmi' for woman special housing loans against the
security of certain approved financial assets like Bank Fixed Deposits, National Savings
Certificates and Life Insurance Policies. In the year 2006, the company introduced new Griha
Jestha for senior citizens for buying unit of LICHFL Care Homes Ltd. In May 2007, the
company launched maiden Fixed Deposit Scheme. In October 31, 2007, the company
incorporated LICHFL Financial Services Ltd for undertaking non fund based activities like
marketing of housing loans, insurance products, credit card, mutual fund, personal loan etc.
In February 2008, they launched reverse mortgage for senior citizens above 60 years of age.
In February 14, 2008, the company incorporated LICHFL Asset Management Company
Private Limited for undertaking the business of managing, advising, administering venture
funds, unit trust, investment trust in India as well as abroad. In March 5, 2008, the company
incorporated LICHFL Trustee Company Private Limited for undertaking the business of
trustees of venture capital trust, funds - in India and offshore fund. In March 12, 2008, they
launched a new venture capital fund for realty projects. During the year 2009-10, the
company was awarded the 'Second Best Home Loan Provider' award by Outlook Profit.
During the year 2010-11, the company launched a unique interest rate scheme namely; 'MINI
5' to cater to housing finance needs of the priority sector population residing in Tier II and
Tier III cities. Now LIC Housing Lunch New Scheme “Griha Prakash”
2.5 Board of Directors of the Company

Mr. S. K. Roy Chairman


Ms. Sunita Sharma Managing Director & Chief Executive Officer
Mr. K. Narasimha Murthy Independent Director
Mr. S. Ravi Independent Director
Mr. B.N. Shukla Independent Director
Mr. JagdishCapoor Independent Director
Ms. Savita Singh Independent Director
Mr. T. V. Rao Independent Director

2.6 Senior Executives of the Company

Mr. Nitin K. Jage General Manager (Taxation) & Company Secretary


Mr. Ajith Kumar L General Manager (Marketing - Corporates & Project, CRM and Legal)
Mr. N. K. Mittal General Manager (Chief Financial Officer)
Mr. L. C. Meena General Manager (Marketing - Retail)
Mr. S. T. Samtani General Manager (PD & Treasury)r
Mr. P. Shekhar General Manager (IT)
Mr. P. Narayanan General Manager (Accounts)
Mr. S. R. Sharma Chief Manager (HR/OS/Estates)
Mr. Venkatasubramanian B Chief Manager (Audit)
Mr. Pardaman Singh Chief Manager (CRM)
Mr. N. Mahesh Associate Chief Manager (Recoveries, PR, Publicity & Market Research)
2.7 Area Offices Pimpri Address
LIC housing Finance Ltd

Office No 17-20, 3rd Floor, B Wing

Kamala Cross Road Building

Opp. PCMC Building, Pimpri, Pune 18

2.8 Pimpri Area Office Staff


SR No Name Post
1 Shyam Gowane Area Manager
2 Vikrant More Assistant Manager
3 Pankaj Koranne Senior Associate
4 Ajit Gaikwad Assistant.
5 Dipthi Tapswi Associate.
6 Babanrao Agalave Assistant.

2.9 Various Products Offered By LIC Housing Finance:

As per various LIC Housing Finance news, there are many products that are offered
by the company ever since it was launched way back in the year 1989. These include
both deposits as well as advance schemes that work as tools of housing finance by
LIC:

2.10 Reasons for Home Loans:

To own a home is everyone's dream. From a single room to multi-storeyed


apartments, private villas, holiday homes, second homes - the Housing market is well
developed in most towns.
Home loans help you realize your own home dream, even when you are young. We
help you plan your dream home as you start your working life, by offering various
options of easy instalments, Income Tax benefits and more . . .
Loans: Loans are offered as per different target groups of consumers. Thus, there are
LIC housing finance schemes offered as loans according to different borrower-
category, such as:
i) Corporate loans
ii) Loans meant specifically for builders as well as real estate developers
iii) Home-loans
iv) Loans aimed at professionals
Deposit schemes: Deposit schemes were first launched by the company on 10th May
2007 and may be accepted as both cumulative as well as non-cumulative deposit
schemes. Terms of deposit may range from 1 year; 18 months; 2 years; 3 years as well
as 5 years.
Interest under non-cumulative deposit schemes would be distributed twice a year;
whereas interest on cumulative deposit schemes would be calculated as per bi-
annually compounding.
Loans: Housing Finance By LIC :
Loan-schemes available with lic housing finance are customized to suit varied
requirements as per individual borrower-profile. As per official website and Lic
Housing Finance news following loans are available:
Home loans: Are offered at easy rates to both residents as well as non-resident
Indians. Step-up facility in terms of amount of EMI amount is also available for those
who wish to opt for a steady increase in their repayment capacity during tenure if
loan.
Corporate loans: Aimed at corporate employees who have been approved by LIC
and include employees of PSUs, reputed public as well as private limited companies
Housing finance by LIC loans to professionals: Aimed at non-salaried
professionals.

 Taking a home loan is a major decision, involving a large investment. Though


the availability of easy financing, innovative products and other value-added
services by Home Loan companies have made the home buying process
relatively easy, for a customer it is still a challenge to decide which home loan
works best for him.
2.11 Subsidiary Companies
1. LICHFL Care Homes Limited
To address the crying need of housing for the senior citizens of the country, the
Company had promoted LICHFL Care Homes Limited, to establish and operate assisted
community living centres. LICHFL Care Homes Limited was incorporate on 11th September,
2001. It launched its eco-friendly pilot project in Bangalore with cost-effective independent
cottages and all other on-campus amenities, fully structured and self-contained to address
every possible need of residents. It has library, community centre, home theatre, meditation
centre, and doctors on call and ambulance to take the ailing to the nearest city Medicare
centre-all that would make the lives of senior citizens comfortable and satisfying. New such
projects are planned in Bhubaneshwar and Jaipur and the company is in the process of
finalising the purchase of land for a few more projects
2. LICHFL Financial Services Limited
LICHFL Financial Services Limited was incorporated on 31st October, 2007 for
undertaking non fund based activities like marketing of housing loans, insurance products,
credit card, mutual fund, personal loan etc. It has become operational in 2008-09 and has
already opened five offices in Maharashtra and plans to open atleast another thirty offices
during 2009-10.
3. LICHFL Trustee Company Private Limited
LICHFL Trustee Company Private Limited was incorporated on 5th March, 2008
for undertaking the business of trustees of venture capital trust, funds-in India and offshore
fund. The Company would very soon launch its operations - act as trustee of the fund raised
through private placement, public offer etc.
4. LICHFL Asset Management Company Private Limited
LICHFL Asset Management Company Private Limited was incorporated on 14th
February, 2008for undertaking the business of managing, advising, administering venture
funds, unit trust, investment trust in India as well as abroad. The Company would launch its
operations very soon.
2.12 OBJECTIVE OF THE STUDY

 To Study of the process of Home Loan.

 Document Required for Loan Sanction.

 Document Required For Loan Disbursement.

 Processing fees paid by customer for the processing of the home loan proposal.

 To study the process of Customer Verification

 To Study the process of Calculation of Loan Disbursement on Property


2.13 Types of Home Loans
The two most widely used types of home loans are fixed-rate loans and adjustable rate loans.
A fixed-rate loan keeps the same interest rate for the life of the loan, which means that the
principal and interest portions of the monthly payment stay the same. Adjustable-rate
mortgages begin with a lower interest rate for the first few years and then adjust to market
rates after the initial period is over. Caps are placed on how much the rate can adjust at any
given time, as well as on how much the rate can increase over the duration of loan. This
means the principal and interest portions of the monthly payment change repeatedly through
the duration of loan. There are different types of home loans tailored to meet our needs. Here
is a list of few:

Housing Loans: This is the basic home loan for the purchase of a new home.

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

Construction Loan: This loan is available for the construction of a new home.

Extension Loan: This is given for expanding or extending an existing home. For eg: addition
of an extra room etc.

Home Conversion Loan: This is available for those who have financed the present home
with a home loan and wish to purchase and move to another home for which some extra
funds are required. Through home conversion loan, the existing loan is transferred to the new
home including the extra amount required, eliminating the need of pre-payment of the
previous loan.

Land Purchase Loans: This loan is available for purchase of land for either construction or
investment purposes.

Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and
purchase another one. The bridge loans help finance the new home, until a buyer is found for
the home.
2.14 Processing Fees & Stamp Duty

 Up to 50 Lacs 10500/- + Services Tax ( Including Cersai Charges )


 Beyound 50 Lacs 15500/- + Services Tax (Including Cersai Charges )
 Intimention of Mortage 2000 to 2500 ( If Manual 2500 & Online 2000 )
 Memorandum of Deposit of Title Deeds ( If 0.2 % Loan amount stamp paid by sub
registrar Duty & Stamp Paper
 Loan agreement 300/- Stamp paper
 Affidavite Sum Undertaking 100/- Stamp paper
 Power of attorney 500/- Stamp Paper

2.15 Rate of Interest

Scheme ROI Fix For


Celebration 25 10.10 % 2 Years
Super Fix 12.25 % Full Term
( Up to 3 Crores)
75 Lacs >75 Lacs
New Fixed 10 11.25 % 11.75 % 10 Years

 Special Features
 Get Sanction Letter Before You Finalised Your Property
 Tenor up to 30 Years*
 Higher Loan Amount Eligibility
 Monthly Reducing Balance
 Easy & Simple Documentation
 No Required - Guarantor & Insurance Product
 Maximum Funding 85 % (up to 20 lac) & 80 % (above 20 lac)

 Features
 Home Loan
 Loan against Property
 Balance Transfer + Top Up
 Both Fixed & Floating Rates Available
 Best Housing Finance Company in Country Awarded by CNBC TV18
 Housing Finance Expertise of more than 20 years.

 Fees On Prepayment
 Nil if paid from own sources else 2.00% on the Amount of loan prepaid + Service
Tax applicable
2.16 Home Loan Procedure
With the increasing competition in the market for offering Home Loans, the otherwise
tedious process of availing loans has gone a tremendous change in the recent years. However,
there is still some process involved in the procurement of Home loan. It is advisable for
borrower to first look at the different stages required for obtaining a Home Loan.
Here is step by step procedure of procuring home loan.

Step 1 : Application form

The first step involved in applying for home loan is the procurement of application form
from the HFC of applicant’s choice. The Performa of application every HFC (Housing
Finance Companies) is different from the other but about 80% information required to be
furnished is the same. Along with the application form necessary documents like address
proof, age proof, proof of income, bank balance etc. are also to be attached with the
application form before it is submitted to the HFC. Along with all these documents HFCs
also ask for processing fee of the home loan that varies 0.25% to 0.50% of the total loan
amount.

Step 2 : Personal Discussion

After successfully filling the application form and submitting it to the authority the next
step is face to face with bank or HFC where you have applied for the home loan. The bank
first evaluates the papers submitted and summons the applicant for the personal discussion
regarding the home loan applied for.

Step 3: Bank's Field Investigation

The next step is the field investigation done by the HFC or banks. They send
representatives to the existing residence of the applicants or their offices for the validation of
the documents submitted. This is the essential part for the banks to establish the trust with the
applicants.

Step 4: Credit appraisal by the bank and loan sanction(CIBIL)

This is the make or break stage of the process. The bank or HFC will establishes
repayment capacity based on applicant’s income, age, qualifications, experience, employer,
nature of business etc. to access credential. The bank can refuse loan application if any
discrepancy is found at this stage. But if everything goes according to the conditions
negotiated by the parties then the bank or HFC sanction the loan that may be unconditional or
with some conditions levied.

Step 5: Offer Letter

After the sanction of the Home Loan, the applicant gets offer letter from the bank or HFC
with the following details. Loan amount, Rate of Interest, fixed or variable ROI, Tenure of
the loan, Mode of repayment General terms and conditions of the loan, Special conditions
etc. If the terms and conditions are agreed the applicant has to sign the duplicate copy of the
offer letter and that is to be submitted to the Bank or HEC.
Step 6: Submission of legal documents & legal check

The bank or the HFC now asks for the legal documents of the property involved for
applying home loan. All the legal documents of the property involved have to be submitted.
The bank does all the legal checks on the property. The documents remain with the bank until
the repayment of the Home loan.

Step 7: Technical / Valuation check

The Banks or HFC then go about the technical valuation of the property. The experts of the
bank visit the site to be purchased and value it as per the existing rules and regulations. The
valuation of the property is the most important aspect that the bank considers before
financing any property.

Step 8: Registration of property documents

After the legal and technical valuation of the property the draft documents has to be
cleared by the lawyer and stamping and registration of the documents is needed.

Step 9: Signing of agreements and submitting post-dated cheques

Now it is time of signing the final agreement of the home loan. After the signing of the
agreement a bunch of Post-dated cheques are to be submitted as agreed on the agreement.
It is time for the final Disbursement of the Home Loan. After the bank or HFC

Step 10: Disbursement

It is time for the final Disbursement of the Home Loan. After the bank or HFC ensures
financing the property is involves no risk they pay the final amount that is agreed upon. The
mode of payment varies from full to part payment. In the case of under construction property
the mode is part payment and in the case of ready possession properties disbarment is full and
final.
2.17 E.M.I Chart (for 1 lac)

Celebration 25 New Fix 10 New Fix 10 Sure Fix GV


Term 10.1 11.25 11.75 12.25 12.50
1 8797 8850 8874 8897 8909
2 4620 4673 4696 4720 4731
3 3232 3286 3310 3334 3346
4 2542 2597 2622 2646 2659
5 2130 2187 2212 2238 2250
6 1858 1917 1943 1969 1982
7 1666 1726 1752 1779 1793
8 1523 1885 1612 1640 1653
9 1414 1477 1505 1533 1547
10 1328 1392 1421 1450 1464
11 1258 1324 1354 1383 1398
12 1201 1269 1299 1329 1344
13 1154 1223 1250 1285 1300
14 1115 1185 1216 1248 1264
15 1081 1153 1185 1217 1233
16 1053 1126 1168 1191 1207
17 1028 1102 1135 1168 1185
18 1007 1082 1116 1149 1167
19 988 1065 1099 1133 1150
20 972 1050 1084 1119 1137
21 958 1037 1072 1107 1125
22 946 1025 1061 1096 1114
23 935 1015 1051 1087 1105
24 925 1006 1043 1079 1098
25 916 999 1035 1072 1091
26 909 992 1029 1066 1085
27 902 986 1023 1061 1080
28 896 981 1018 1056 1075
29 890 976 1014 1052 1071
30 885 972 1010 1048 1068
Chapter No 3

OUTLINE OF TASK
Outline of Task

1) Risk of default should be reduced by funding the right customer, by using various

tools of appraising like CIBIL Report, Field Investigation.

2) Exiting Loan (If already & any loan taken Loan) Track Record needed to LIC housing

loan process & Loan approval

3) To find out the customer profile of the Home loan applicants.

4) Most of the Customer prefers LIC Housing Finance Ltd because of its service.
Chapter No 4

RESEARCH METHODOLOGY & DATA ANALYSIS &


INTERPRETATION
4.1 Research Methodology
Research Methodology is a way to systematically solve the research problem. It may
be understood as a science of studying now research is done systematically. In that various
steps, those are generally adopted by a researcher in studying his problem along with the
logic behind them.

Data collection is important step in any project and success of any project will be
largely depend upon now much accurate you will be able to collect and how much time,
money and effort will be required to collect that necessary data, this is also important step.

Data collection plays an important role in research work. Without proper data
available for analysis you cannot do the research work accurately. There are two types of data
collection methods available.

Redman and Mory define research as a “systemized effort to gain new knowledge.”
Some people consider as movement a movement from the known to the unknown it is
actually a voyage of discovery

1) Data Sources:-

In the Preparation of this project it is necessity to collect the Primary data and
Secondary data

2) Primary data: -
The information about the Company is gathered from the discussion with the
employees/staff. Basically I was use primary data for that project
3) Secondary data:-

The secondary data collected -


The balance sheets as on the date of 31st March 2013 for the period of

1st April 2012 to 31st March 2013

4) Sample size:-

Five cases of Home Loan Proposal are to be studied for understanding of the appraisal of
home loan. Data collected through survey of procedure, service, etc. provided by LIC
Housing Finance Ltd by filling questionnaire of fifty & above LIC Housing Ltd Customer
The methodology of this study has been adopted on the following basis:

 Study of various Journals, Notes & Books.


 Collection of Primary & Secondary data records of the organization.
 Analysis of the collected data for its application.
4.2 Home Loans Two Stages
The housing finance cycle at LIC Housing Finance Ltd is of two stages, both are important
and play a vital role in fulfilling the requirements of housing finance institution.

The two stages are as under-


1. Sanction stage.
2. Disbursement stage.

1. Sanction stage.
It is a stage where the customer get sanction or approval that he is eligible to take
a loan of specific amount calculated on the basis of his income from LIC Housing
Finance Ltd.

2. Disbursement stage.
It is a stage where the cheque of sanctioned amount is handover to the customer or
concerned person.

3.2.1 Sanction stage


A. Generation of leads/Sourcing of business.
B. Contact & collection of documents from customer.
C. Completion of documents.
D. Field investigation report.
E. Verification of relationship officer.
F. Personal discussion.
G. Final approval or rejection by the branch credit manager.
H. Sanction letter delivered to the customer.

A. Generation of leads/Sourcing of business:-


This is an important step in the housing finance cycle to keep the organization
moving successfully. It is essential to generate cases to credit LIC HFL uses methods to
source business & generate leads-
1. Mail.
2. Walk-in interview.
3. Telephone enquiry.
4. Customer reference.
5. Approved project file.
B. Contact & collection of documents from customer:-
Once the lead has been sourced the sales officer contact him & give him a list of
documents long with other corresponding information. When the documents are handed
over to sales officer, he submit documents along with the application form to LIC
Housing Finance Ltd. Sales officer gives an idea about how much loan can customer avail
as per his income.
C. Completion of documents:-
The document have been collected by the sales officer hand over to the back office
executive, executive then complete documents in special file provided for LIC Housing
Finance Ltd in accordance with the requirement of LIC Housing Finance Ltd.
D. Field investigation report:-
After completing the documents the back office executive ties the field investigation
report with the data compiled from the file before moving it on the next stage.
E. Verification by sales manager :-
After completion of documents and filing of it, the documents are handed over to the
Sales manager, who verifies the documents to check for loan analysis the strength and
weakness of a case, the loan eligibility & the requirement of additional documents. The
sales manager act as a filter allowing good case to flow through for final approval while
do not fit, into the polices of LIC Housing Finance Ltd. Sales manager make signature if
the case fit into policies of the bank.
F. Personal discussion:-
PD is an important stage in sanction process. as per norms loan amount is decided on
the basis of documentation but the customer knowledge, his behaviour can be decided on
the basis of PD with him. It helps to judge the credit worth ness of applicant which helps
organization in future. Sales manager make signature if the case fit into policies of the
bank.
G. Final approval or rejection by the branch credit manager:-
The file is send to the branch credit manager for final approval. after checking the file
branch credit manager take final decision of approval or rejection of the case. If the case
is rejected the documents are returned to the customer & if the case is approved then it
goes to the next step.
H. Sanction letter delivered to the customer:-
This is the final step in sanction process after receiving the sanction letter it hand over
the sanction letter to customer along with a list of legal documents required for the next
stage i.e. disbursement stage.
3.2.2 Disbursement Stage
A. Collection of legal documents.
B. Completion of documents.
C. Legal appraised.
D. Technical appraised.
E. Final check by the BCM.
F. Cheque disbursement.

A. Collection of legal documents:-


This is the first step towards the disbursement of cheque after sanction of the case.
Already the sales officer collect the legal document from the customer in case of self
construction & or collect it from the builder from whom the customer is purchasing the
property

.
B. Completion of documents:-
Once the documents are collected by the sales officer he hand it over to the back
office executive for compilation the executive complete the documents and process.
C. Legal Appraisal:-
The legal appraisal of a case is an important step & it done by lawyer specially
appointed by LIC Housing Finance Ltd. The lawyer verify the documents to check if the
title of the property is free & marketable from all obligation, other legal aspect is free
from any fraud. once the documents have been verified he submit a legal report to LIC
Housing Finance Ltd. The lawyer report is very essential without his approval no case is
clear. In case of negative remark mentioned by the lawyer the case is being rejected.
D. Technical Appraisal:-
The technical appraisal is a task in which an engineer specially appointed by LIC
Housing Finance Ltd he visit the site and check the property and prepare a report and
submit it to the bank. On the basis of the report the BCM takes his disbursement decision.
1. If the property is in accordance with the plans rules and regulations approved
by NMC.
2. If there are any legal and unauthorized construction on the site.
3. If the owner of the property is the same as mentioned on the legal Documents.
4. The extract or stage of constructions.
5. The raw material etc. available on the site.
6. He checks to see the cost is being incurred on the property is equivalent to the
Estimate shown by the customer.
7. He also Provide an estimated date of compilation of the property.
8. Checking the age and conciliation of the property in case of resale Property.
E. Final cheque by the BCM:-
The BCM makes a final check of the documents before taking his decision. If the
case is clear then BCM send s the file to operational manager.
F. Cheque disbursement:-
This is final step in the disbursement stage. The operation manager prepare the
cheque along with the letter which is handed over to the sales officer who then five it to
the customer. Disbursement of cheque is done in accordance with the stage of
construction as reported by technical advisor.

The cheque is disbursed in two ways,


1. As a part disbursement.
2. Fully disbursement.
4.3 List of Document’s Required For Home Loan Sanction

4.3.1 Salaried Person

1) Application For Completed with 2 Photo Duly Filled in & Signed


2) ID Proof : Pan Card , Passport , Voter Card, Employer ID Card, & Driving License.
3) Residence Proof : Latest Telephone Bill, Bank Statement containing Address for last
6 month. Electricity Bill, Ration Card, Letter from Employer
4) Salary Slips For last 3 months with seal & Sign
5) Latest Form 16 with Seal & Sign
6) Copy of Appointment Letter with Latest CTC & Confirmation Letter
7) Original Bank Statement, Passbook of Salary A/c for Last 6 month with seal & Sign
8) Last Qualification Proof
9) Previous Employment Details if applicant is on Probation
10) LIC Insurance & other Insurance Policy Details if Any
11) Processing Fees Cheque
12) All Track Records for 24 months for existing Loans if any
13) All Document to be Self attested

4.3.2.Self Employed / Professional

1) Application For Completed with 2 Photo Duly Filled in & Signed


2) ID Proof : Pan Card, Passport, Voter Card & Driving License
3) Residence Proof : Latest Telephone Bill, Bank Statement containing Address for last
6 month. Electricity Bill, Ration Card.
4) Last 3 years ITRs ( SARAL, Computation of income, Balance Sheet, Profit & loss
A/c, TDS Certificates ( If Applicable), Tax paid Challans.
5) In case of Partnership firm: ITRs for last 3 years &Partnership Firm.
6) In case of company: Audit Reports for last 3 years & MOA & AOA.
7) Bank Statement / Passbook of Current & SB A/C for last 6 months (update )
8) Alternate Business Proof ( Shop Registration Certificate etc.)
9) Processing Fess Cheque
10) 26 AS for 3 years
11) IT Verification

4.3.3 In Case of Take Over

1. Outstanding Loan Quotation


2. Repayment Track Record
3. List of Document from Bank
4. NOC for take over
5. Copies of Property Agreement
6. Sanction Plan copy ( Blue Print )
4.3.4 Non Residency Indian

1. Copy of Passport , Visa , Service Contract, Salary Slip ( all duly attested by Indian
embassy | Notary | HFL Officials | Bank )
2. GPA ( General Power of Attorney ~ in our format ( all duly attested by Indian
embassy | Notary | HFL Officials | Bank )
3. Bank Statement for past one year of recent employment
4. NRI Bank Statement for 6 months
5. See list of salaried Document

# Above mentioned income document are required for the Co- applicant also if
His / Her income is considered
4.4 List of Document for Disbursement
4.4.1 Post sanction/Legal documents.
Post sanction is legal documents on the basis of which a cheque is disbursed to the
customer. The only security that LIC HFL has against a loan in this legal documents & no
deviation is usually allowed in legal document. These documents are sending to the lawyer
who verifies before being accepted by LIC HFL. These are as follows:
1) Direct From Builder Case:
Agreement of Sale
Sub Registrar Receipt
No objection certificate from builder
Own contribution receipt from builder
2) Direct from Registered Co-op Housing Society Ltd.:
Share Certificate
Allotment Letter
No Objection Certificate from Society
Own contribution receipt from Society
Copy of Society Bye Laws
Society Registration Certificate
Registered Agreement if not Original member
3) Own Construction Case:
Original Sale Deed with Registration Receipt.
7/12 Extract
6 D Extract
NA Order Copy
ULC Order Copy
Latest Title Clearance Certificate
Original Architect Estimate
Commencement Certificate
Prior Sale Deed with Original Reg. Receipt.
4) Resale Case:
Sale Deed/Agreement with Registration Receipt
Previous Customers Sale Deed/Agreement with Registration Receipt
Own Contribution Receipt
NOC from Builder/Society
Title Certificate
Share Certificate & Allotment Letter (if applicable)
NA Order & NA Tax Receipt (Xerox)
ULC (Xerox)
7/12 & 6-D Extract (Xerox)
Commencement Certificate & Completion Certificate (Xerox)
Society Registration Certificate & Bye-Laws (Xerox)
Title Certificate (Xerox)
Building Plan (Xerox)
5) MASTER FILE/LEGAL FILE:
Sale Deed/lease Deed/Gift Deed or Development Agreement/Power of
Attorney/Partnership Deed
NA order & ULC
Commencement Certificate & Completion
Building plan
7/12 Extract & 6-D Extract
Title Certificate
Society Registration Certificate
Bye Laws Copy.
3.4.2 Analysis of Legal Documents
 All owners of the property should be applicants
 Check for cost of property and OCRs paid
 Signature of the owners should match with the application form
 Witness should sign the agreement
 Priority and Non Priority documents to be collected as per legal report
 NOC From builder/ society / development authority as the case may be
 Own contribution receipts
Agreements
 Current agreement must be registered
 Stamp Duty receipt required
 Registration receipt required
 Stamp duty receipt and registration receipt amount to be added to cost of property and
calculated as OCRs too.
NOC
 NOC should be on the letterhead of the Society/ Builder / Development Authority
 Should have the stamp of the society / Builder / Development Authority
 Address should match as per the agreement, Flat No., Wing No. etc..
 Should be as per the procedures and drafts for different transaction types.
 Must be dated
Own Contribution Receipts
 Must have a revenue stamp
 Cash payments cannot be more than Rs.20000/-
 Should give details of the property like flat No. etc
 In case of refinance > Rs.1 lac
 Builder case – Receipts from builder & debits in bank account
 Resale – Agreement for sale / Sale deed to be registered before refinance
Property Norms:
 Property should not be in negative area
 Property should be within geographic limits
 Property should be self contained
 Maximum age of property less than 35 years at loan application
 Loan tenor not to exceed residual age of the property
 Minimum Built up area > 400 sq. ft
 In case of row house of ground floor only
4.5 Personal Discussion
(Salaried Persons)
Name of the Applicant
1. a) Name of the Employer Organization
b) Designation
c) No. of year in service with present employer
2. a) Educational Qualification
b) Name of University / Institute
c) Year of Passing Out
3. Past Experience – No. of Jobs changed
Previous Employer 1
a) Name of Organization
b) Designation
c) No. of year in Service
4. Previous Employer 2
a) Name of Organization
b) Designation
c) No. of year in Service
5. Family Status
a) Whether Spouse is Co- applicant?
b) Whether Spouse is working?
Salaried / Self – employed
6. Details regarding existing Place of Residence
a) Current Residence – Owned/ Rented/ Company
Leased/ Parental
b) No. of years staying at Current Residence
c) In case of Company Leased Accommodation
whether planning to shift to new Premises?
If yes, Expected Sales Proceeds/ Rent
d) In case of Second House, plans for existing
property – whether existing Property will be Sold /
Rented?
If yes, Expected Sales Proceeds /Rent
7. Details of Saving / Investment
a) Immovable Property / Bank FD / Savings Balance
/ NSC / KVP / Mutual Fund / Shares & Stocks /
Bonds, PPF, Insurance Policies
8. Complete Details of existing Loans / Liabilities
provided in Application Form?
Whether Application intends to close any of them?
9. As per Applicant’s view, how much EMI can he pay
to LICHFL
10. a) Whether Property identified?
b) Approximate Property Value

c) Source of Margin Money


11. Comment on end use of Money in case of Top-up
Loan & Loan under Griha Vikas Scheme.
12. Whether procedure for Sanction of Loan e.g.
Verifications CIBIL explain to the Applicant?
4.6 Calculation Sheet of Loan on his Payment
Format

APPLICANT EARNING
Particulars Amount ( P.M.)
Basic Pay
DA
HRA
Transport Allowance
SPL Allowance
Performance Allowance
Medical Allowance
LTA
Education Allowance
Variable ( Annual )
LTA
PLI/ Bonus/ Incentive
Medical
Total Variable

TOTAL EARNING ( A )

DEDUCTIONS
Particulars Amount
Provident Fund
Professional Tax
Income Tax
Transport
Canteen
Loan 1
Loan 2
Loan 3
Loan 4
TOTAL DEDUCTION (
B)
NET INCOME (A-B)

Applicants Age ( D )
Loan Term ( E )
Age + Term ( D+E )

Total Net Income


Loan Amount
EMI
MLSC
4.7 Customer – Basic Eligibility Calculation.
FOIR: Fixed Obligation to Income Ratio:
Income Applicable FOIR
Below 20000 to 25000 50 %
25000 and Above 60 %
How we treat income from other sources?
Source %Eligibility Proof
Agricultural income (As 50 % of average of last 2 3 years ITR’s and 7/12
stated in ITR) years extract or ownership
document copy.
Rental Income 100% of average of last 2 03 ITR
years
Rental Income 100% of current rental Lease Agreement for 3 years
income as per lease
Agreement
Rental Income 50 % of current rental income Leave & License agreement
as per leave & License copy of current period
Agreement
LIC /Broker commission i.e. 50 % of new business & Certificate / original
NSC, KVP, IVP postal 100% of renewal business commission slip of Cos.
Interest / Dividend Income 50 % of average of last 2 03 years ITR’s
years
The agreement of the eligibility from other sources of income must not be more than 100 %
of the agreement of the main salary income.
1) Resident Indian – Salaried:
ITEM CONSIDERATION
REG.ITEMS (PAYSLIP) 100%
HRA 100%
PENSION INCOME 100%
BONUS 100%
ANNUAL BENEFITS 50%
FIXED 50%
REIMBURSEMENTS
VARIABLE ITEM 50%
2) Self-Employed – Professional:
For calculation purpose SEPs can be classified as per following pattern –
a. Doctors
b. Allopathic (MBBS plus)
c. Other (BHMS, BUMS, (etc.)
d. Others (CA, CWA, CS, Lawyer, Consultant etc)
Methods Used
1. GPR Multiplier Method
2. Eligibility based on Net Profit
3) Resident Indian – SENP:
Business Income
Av. Net Profit (PAT) for last two years Net Profit
Add: Depreciation* Depreciation
--------------
Business Income
Personal Income (Salary / Remuneration)
(Av. For last two years)
Personal Income

Total Appraised Income = BI + PI

Income from other sources

Type Eligibility Proof


Agricultural Income 50%* ITRs
Rental Income 100%* ITRs
Interest/Dividend Income 50%* ITRs

*Average of the last two years amount


Income from above sources should not exceed
50% of the Total Appraised Income
4.8 Data Analysis

Table 1:
Age Group Percentage
25-35 45
35-50 35
50-60 15
Above 60 5
Total 100

Graph 1:

Age Group

5
15

45
25-35
35-50
50-60

35 Above 60

Analysis:

It was found that about 45% of people were between age group of 25-35, 35% were
between 35-50, 15% were between 50-60 and 5% were above 60.

Interpretation:

Thus we conclude that the average percentages of people in the above age groups showed
interest in the survey of LIC HFL
Table 2:

Annual Income Percentage


Below 2 lacs 2%
2-5 lacs 30%
5-10 lacs 65%
Above 10 lacs 3%
Total 100%

Graph 2:

Annual Income
100%

0%
Below 2 lacs Percentage Percentage
2-5 lacs
5-10 lacs
Above 10
lacs

Analysis:

It was found that 2% of candidates are below 2 lacs. 30% are between 2-5 lakh. 65 % of
are between 5-10 lakh. While only 3% are above 10 lakh.

Interpretation:

Therefore it can be conducted that maximum income group was found between 5-10 lacs.
Table 3:

Possess Property Percentage


Yes 67%
No 33%
Total 100%

Graph 3:

Own property

33%

Yes
No

Analysis:

67% of candidates possess their own property and 33% of candidates had no property.

Interpretation:

This shows that out of 100 respondents 67% had their own property while 33% had no
property. 67% were not willing to invest or buy any property.
Table 4:
If yes, the type of property-

Type of Property Percentage %


Residential 78
Commercial 18
Others 4
Total 100

Graph 4:

Type of Property

4
18

Residential
Commercial

78 Others

Analysis:

It was found that 78% of the candidates preferred residential property. 18% wanted
Commercial while only 4% of the respondents wanted other than residential and
commercial property.

Interpretation:

Thus, it can be concluded that 78% of the respondents wants to invest in the property
for living purpose. While 18% wants to derive their business with the help of that property.
Table 5:

Budget Percentage
10-30 69
31-50 21
Above 50 10
Total 100

Graph 5:

Budget

10

21
0-30
31-50
69
Above 50

Analysis:

69% have budget more than 50 lacs. 21% have between 31-50 and 10% have between 0-30
lakhs

Interpretation:

Thus, it can be said that major respondents do not want to invest much to buy a property. As
majority of the respondents are of middle class society. While there are only10% who belong
to high class society can invest above 50 lakhs.
Table 6:

Home Loan Percentage


Yes 79
No 11
Can’t Say 10
Total 100

Graph 6:

Percentage

10
11

Yes
No

79 Can’t Say

Analysis:

79% of respondents preferred home loan while 11% did not prefer loans. There were 10% of
respondents who could not decide whether to take or not.

Interpretation:

Major respondents wanted to buy a property over loan basis as mostly respondents are service
men. Those who did not prefer loan were businessmen.
Table 7:

Preferred Option Percentage


SBI 32
HDFC 16
LICHFL 12
ICICI 10
AXIS 8
PNBHFL 9
CANARA 3
ALLAHABAD Bank 6
DHFL 4
Total 100

Graph 7:

SBI
3
6 4
HDFC
32
9
LICHFL
8 ICICI
AXIS
10
16 PNBHFL
12
CANARA
ALLAHABAD Bank
DHFL

Analysis:

32% respondents preferred SBI. 16% preferred HDFC. 12% preferred LICHFL. 10%
preferred
ICICI. 8% preferred Axis. 9% preferred PNBHFL. 3% preferred Canara Bank. 6% preferred
Allahabad Bank. 4% preferred DHFL.

Interpretation:

Maximum proportion of respondents preferred to opt for SBI. This shows that most of them
have faith in SBI. Next preference is to HDFC and then LICHFL.
Chapter No 5

ACTIVITY CHART
5.1 Activity Chart

Work Plan
S. No. Date Activities
1 15/05/2014 Start Work ( Discussion about the topics for study )
2 22/05/2014 Initial Study (Selection of the topic of Initial Study)
3 29/05/2014 Secondary Data Collection
4 12/06/2014 Primary Data Collection
5 03/07/2014 Data Analysis/ Interpretation
6 16/07/2014 Project completion ( Discussion with the project guide & Reporting here)
7 16/07/2014 Summer Internship Programs End of Stage
Chapter No 6

KEY LEARNING
6.1 KEY LEARNING

1) The Process of all types of home loan taking.

2) Document Required for Loan Sanction.

3) Document Required for Loan Disbursement.

4) How to the determine the Processing fees applicable for various customer

5) Process of Customer Verification

6) How the Manager deals with the various customer

7) How to determine loan eligibility based on EMI chart

8) Minimum balance required for qualifying loan


Chapter No 7

CONTRIBUTION TO THE ORGANIZATION


7.1 Contribution to The Organization

1) Visits to the various Residential Construction sites & attract new customer to our company

2) In PCMC area I have visited on more than 10 Builder construction sites

3) In PCMC area I have visited to more than 50 customers by visiting their residence

4) In two months I had recommended 11 customer to LIC housing family from my own
reference ( 11 customer taking a loan) & after two month of ( SIP ) in addition to 5 customer
have availed the loan from my own reference.

5) Daily calling for new customer & asking a customer requirement for loan & follow up of
customer.
Chapter No 8

QUESTIONNAIRE & WEB SITE DETAILS


8.1 QUESTIONNAIRE
1. What is your age?
A. 25-35 B. 35-50 C. 50-60 D. above 60

2. What is your occupation?


A. Service Class B. Businessman C. Professional

3. What is your Annual Income?


A. Below 2 lac B. 2 -5 Lac C.5-10 lac D. Above 10 Lac

4. Do you have your own property?


A. Yes B. No

5. What is your Property Cost


A. Above 10 to 25 lac B. Above 25 to 50 lac
C. Above 50 to 75 lac D. More than 75 lac

6. What is your reaming balance ( Source of Fund ) paid by Builder ?


A. Saving in Bank B. Provident Fund
C. Disposal of Investment / Property D. Loan from Employer
7. Are you interested in buying a property in near future?
A. Yes B. No C. Can’t say

8. If Yes Which type of property you interested?


A. Residential B. Commercial C. Other

9. If interested, the main purpose of buying the property is-


A. For self purpose B. For investment
C. Others ___________________
10. Are you satisfied with the home loan procedure of Bank?
Yes No
11. Rate of interest at LIC Housing Finance is
High Low Normal

12. Pl Specify the location in which you are interested for buying property?

_______________________

Name:
Address:
Contact No:
CASE NO.1
1) Applicant Name : Mr. Nilesh Palhade

2)Loan Amount Applied : 1967000/-

3)Tenor Requested : 25 Yrs

4)Profile :

Applicant : Salaried

Organisation : Deutsche Bank

5) Monthly salary:

Applicant: Rs.27242 p.m. & Incentive Rs.7550 p.m.

6) Strength of the Case:

Bank Salary

Qualified Profile

No Existing obligation

Super Worksite Company

7) Findings:

1) Field Investigation report is Negative due to House found locked at the time of
Visit.

2) Exiting Loan For Education Loan Track Record One Cheque To Bounce

8) Suggestions:

1) Field Investigation Report is Negative and FOIR is exceeding hence; Approval


should be taken from Higher Authority i.e. Regional Business Head.

2) Reason for Cheque Bounce on his Education loan


CASE NO.2
1) Applicant Name : Mr. Yogesh Patil

2) Co-Applicant Name : Mrs. Geeta Patil

3) Loan Amount Applied : Rs. 1600000/-

4) Tenor Requested : 20Yrs

5) Profile :

Applicant : Business

Organization : Tax Consultancy, Life Insurance Agent

Co-Applicant : House Wife

6) Monthly salary:

Applicant: Rs.423142 p.a.

7) Strength of the Case:

Bank Balance Good

Good Business Report

Good Saving in Recurring Deposits, Fix Deposits

LIC Policy worth Rs 30 Lakhs

Income tax Paid in Time & Customer is tax Consults

8) Findings:

Applicant Bank Statement showing monthly deduction of EMI of Axis Bank and the
said was reflected in CIBIL Verification report.

9) Suggestions:

As per discussion with Applicant his Loan to be close after Sanction. There Loan
Closing NOC Report attach in Disbursement file.
CASE NO.3

1) Applicant Name : Mr. Khushboo Singh

2) Co-Applicant Name : Mr. Prakash Singh

3) Loan Amount Applied : 2725000

4) Tenor Requested : 20 Years

5) Profile:

Applicant : House wife

Co-Applicant : Salaried

Organization : SKH Magneti Marelli Exhaust Sys Pvt, Ltd.

6) Monthly Income:

Co-Applicant : Rs.68477 p.m.

7) Strength of the Case:

Good Salary

Very Very Good Bank Balance Maintaining (above 25000 for Minimum)

Good RTR of Existing H. Loan

8) Findings:

1) Co-Applicant Bank Statement showing monthly deduction of Rs.11458 & 3859 as EMI
of Housing Loan & Personal Loan

2) Co-Applicant Purchase on second property.

9) Suggestions:

1) As per discussion with Co-Applicant he is not going to nil that Housing loan hence the
said EMI should be considered as obligation in loan eligibility calculation & Demand on
Track Record for Both Loan
CASE NO.4

1) Applicant Name : Mr. Sambhaji Karpe

2) Loan Amount Applied : Rs 450000/-

3) Tenor Requested : 10 Year

4) Profile :

Applicant : Salaried

Organization : Emcure Pharmaceuticals Pvt. Ltd

6) Monthly Income:

Applicant : Rs.34512 p.m.

7) Strength of the Case:

Good Bank Balance

Good Salary on his Demanding Loan

PF Balance is 7 Lakhs

8) Findings:

1) Applicant Bank Statement showing monthly deduction of EMI of LIC Housing Loan
for his Previous loan and the said was reflected in CIBIL Verification report.

2) Applicant salary slip is not self attested

3) Applicant take a Top-up Loan on his personal work

9) Suggestions:

1) Applicant is not need for close his Home Loan for Existing because his that loan
additional loan taken
CASE NO.5

1) Applicant Name : Mr. Pratha Sarathi Mukherjee

2) Co-Applicant Name : Mrs. Sutapa Mukherjee

3) Loan Amount Applied : Rs.1,650,000/-

4) Tenor Requested : 9 Years

5) Profile :

Applicant : Salaried

Organization : Jankidevi Bajaj Gram Vikas Sanstha

Co-Applicant : House wife

6) Monthly Income:

Applicant : Rs.36314 p.m.

7) Strength of the Case:

Salary

Bank Statement is Very Good Maintain

Good Investment in Fix Deposits & Mutual Fund Recurring Deposits

Stable / Govt. Job

No any Obligation

PF Balance worth Rs.20 Lacs

Owned House worth Rs.35 Lacs

Qualified Profile

8) Findings:

Applicant’s Age is 51 years.

9) Suggestions:

Loan Amount possible for only 9 years remaining in the service hence maximum loan
tenor should be restricted to 9 years.
8.2 Bibliography

8.2.1 Books & Sites:

Books

LIC Home Loan Guidance Book

Research Methodology By C. R. Kothari

Sites

www.lichousing.com

www.moneycontrol.com

www.google.com

www.rupeetimes.com

www.economictimes.indiatimes.com

www.profit.ndtv.com