ICICI BANKHOME LOAN Project (Final)

ICICI BANK HOME LOAN
<ICICI BANK HOME LOAN>
A PROJECT REPORT
Under the guidance of
PRADEEP GANI
Submitted by
RANGANATH MANAGOOLI
in partial fulfillment o f the requirement

for the award of the degree
Of
MBA
IN
MARKETING
<JUNE> & <2013>
RANGANATH MANAGOOLI. MBA, SMUDE

Bonafide Certificate:
BONAFIDE CERTIFICATE
Certified that this project report titled “HOME LOAN” (ICICI BANK) is the
bonafide work of “RANGANATH MANAGOOLI” who carried out the project

work under my
supervision.
SIGNATUR SIGNATURE
KETAN S. SHAH A .M. SHAIKH

HEAD OF THE DEPARTMENT FACULTY IN CHARGE
Coordinator
H R Department H R Department
Bagalkot Educational Academy, Bagalkot. Bagalkot Educational Academy,
Learning Centre Code: 3356 Bagalkot, Learning Centre Code: 3356

Bonafide Certificate:
BONAFIDE CERTIFICATE
Certified that this project report titled “HOME LOAN” (ICICI BANK) is the
bonafide work of “RANGANATH MANAGOOLI” who carried out the project work
under my
supervision.
SIGNATURE SIGNATURE
INTERNAL EXAMINER EXTERNAL EXAMINER

CONTENTS
 PROFILE
 EXECUTIVE SUMMARY
 INTRODUCTION
 LITERATURE REVIEW
 NHB GUIDELINES
 LIST OF APPROVED HOUSING FINANCE COMPANIES
 WHAT ARE THE TYPES OF HOME LOANS AVILABLE?
 STATEMENT OF THE PROBLEM
 PURPOSE OF THE STUDY
 COMPANY PROFILE
 HOSTORY AND OVERVIEW
 PURPOSE OF THE LOAN
 DOCUMENTATION REQUIRED
 ORGANIZATION CHART
 SAMPLING
 ANALYSIS OF GRAPH
 FINDINGS
 SUGGESTIONS
 CONCLUSION
 BIBLIOGRAPHY
 QUESTIONNAIRE

EXECUTIVE SUMMARY
Shelter is the necessity of human being besides employment that creates to the core
need of food & clothing this ideology promoted govt. to identify housing development as the
sector of top priority. It was estimated that one million housing units required per annum
which, estimates outlay assessed for the financial year 1990-91 alone was Rs.2000 corers.
Today, besides housing financing agencies number of non banking financial
institutions, are engaged in financing housing schemes have catered to the requirement of all
strata of Society with special focus on low income & lower middle income groups helping ,
them to realize the cherished dream of owning abode.

INTRODUCTION
HOUSING SCENARIO IN INDIA:-
The growth rate of the economy might go up to levels up to 6%, if the revival is kept
up. Share markets are not entirely looking up, though they are stabilizing at levels, which can
be termed as reasonable. Industrial growth rate, which was allowing at a low of 1.5%, is now
at around 5%. In fact, industrial credit given out by banks which in normal times would be
about 4-5 times of bank credit given to housing, had in the last few years reduced to levels
below advances to housing loans. But the happy feature is that industrial growth is picking up.
Even, the steel sector, which was hopelessly down, is now having hopes of revival.
It is only housing, amidst all these that seems to have kept up fairly stable front. Yes,
the late 90s saw even housing go through a bad phase. But, then with that phase crossed,
there has been a steady revival and stabilization of the market at levels, which can be termed
as reasonable from the point of view of both the customers and those on the supply side.
Housing is a basic need and like any basic human need will be constantly in demand. The
potential for housing in this country is huge by NHB estimates. And the requirements by NI
IB estimates are around 20 million houses. There are other estimates, which suggest that it is
at a much higher level. Even going by the conservative estimate taken by the NHB, the
requirements in the area of housing are massive. This really means that a lot of investments
cab is there in the coming years and there is room for multiple players.

LITERATURE REVIEW
HOME LOANS
Brief review of the performance
The housing sector plays an important role in the economic development of the
country. Every rupee invested in housing adds 78 paisa to the GDP. Over 269 industries are
directly or indirectly dependent on the housing sector.
There is an estimated shortage of 20 million housing units in the country with an
estimated investment requirement of over Rs 1500 billion. In this context it is important to
note that that the organized housing finance industry barely accounts for 30% of the home
loans disbursed in the country. The last few years have seen the home loans market growing
at a CAGR of over 30 percent. Certain fiscal, social and regulatory drivers have mainly
fueled the growth:
• Changes in demographic profile including increase in the rate of household formation due to
structural shift from joint family system to nuclear family
• Ever increasing middle class, migration of population and increasing urbanization

resulting in acute shortage of housing units
• Increase in disposable income levels due to decrease in marginal tax rates and increase in
total income levels
• Tax benefits and other fiscal incentives announced in the Union Budgets
• Increasing affordability of housing property purchase due to declining interest rates and
stable property prices
• Decline in the average house cost to annual income ratio to around 4-5 from 11-14 during
the last decade resulting in an affordable EMI as a percentage of monthly income
• Aggressive lending by banks to the housing sector due to lower credit off take by the
corporate sector, attractive spread and lower non performing assets.

Major developments during the year
The year 2002-03 witnessed the commercial banks becoming aggressive players in the
home loans market and a dramatic fall in interest rates across all maturities. This fall in
interest rates was driven by the decreasing bank rate and the increased competition with in the
banks themselves and between the Banks and HFCs. There was a growing emphasis on the
adjustable rate loans due to the decreasing interest rate scenario. In presenting the Union
Budget for 2002-03 the Hon'ble finance minister announced that National Housing Bank
would launch a Mortgage Credit Guarantee Scheme, which would be provided to all housing
loans thereby fully protecting lenders against default. Towards this end the Asian
Development Bank (ADB) approved an investment of up to USS10 million equivalent in
November 2002 to help pioneer the first mortgage Guarantee company for India.
NHB GUIDELINES
In pursuance of its objectives, as the principal agency to promote a sound, healthy,
viable and cost effective housing finance institutions/companies and to provide financial and
other support to them, the NHB has issued operating guidelines for the HFC's in India. They
must conform to these guidelines to the eligible for financial/re finance support from the
NHB. Presently, it provides to eligible HFC's refinance facilities in respect of housing loans
for acquisition/construction of new housing units. The important guidelines are briefly
summarized in this section.
Eligible Institutions
There are 29 HFC's in the country, which are registered with the NHB as the apex
institution/housing bank with statutory obligation to regulate and supervise the housing
finance industry. They are as follows:

LIST OF APPROVED HOUSING FINANCE COMPANIES

1. Andhra Bank Housing Finance Ltd
2. BOB Housing Finance Ltd
3. Can Fin Homes Ltd
4. Cent Bank Home Finance Ltd
5. Corporation bank Homes Ltd
6. Dewan Housing Finance Corp.Ltd
7. GIC Housing Finance Ltd
8. GRUH Finance Ltd
9. GLFL Housing Finance Corp. Ltd
10. Global 1 lousing Finance Corp. Ltd
1 1. Happy Home Profin Ltd
12. Housing Development Finance Corp. Ltd
13. Housing and Urban Development Corp. Ltd
14. Home trust Housing Finance Ltd
15. Ind Bank Housing Ltd
16. LIC Housing Finance Ltd
17. Livewell Home Finance Ltd
18. Maharishi Housing Development Fin. Corp. Ltd
19. Mercantile I lousing Finance Ltd
20. Orissa Rural Housing & Development Corp. Ltd
21. Parashwanath Housing Finance Corp. Ltd
22. PNB Housing Finance Ltd
23. Peerless Abasan Finance Ltd

24. SBI Home Finance Ltd
25. ICICI Home Finanace
26. Saya Housing Finance Company Ltd
27. Vyasya Bank Housing Finance Ltd
28. Vij ay a Home Loans Ltd
29. VI Bank Housing Finance Ltd
30. Weizmann Homes Ltd
What are the types of Home Loans available?

Home Purchase Loans: There are the basic home loans for the purchase of a new
home,
A loan for ready built house / flat
Home Improvement Loans: These loans are given for implementing repair works and
renovations in a home that has already been purchased by you.
Home Construction Loans: These loans are available for the construction of a new home.
Home Extension Loans: Are given for expanding or extending an existing home. For example
addition of an extra room, etc.
Home transfer Loans: Are 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 a Home Conversion Loan, the existing loan is transferred to the new home
including the extra amount required, eliminating the need for pre-payment of the previous
loan.
Land Purchase Loans: These loans are available for purchase of land for both home
construction or investment purposes.

Balance Transfer: Balance Transfer loans help you to pay off an existing home loan and avail
the option of a loan with a lower rate of interest.
Refinance Loans: These loans help you pay off-the debt you have incurred from private
sources such as relatives and friends, for the purchase of your present home.
The overall City
We are now talking about one of the oldest, strong & prominent & well-cultured historical
place called as HUBLI passed and today it's an entirely different story. HUBLI has now
become one of the important & considered cities in the state of KARNATAKA.
HUBLI is now marching with a tag of fast growing, redeveloping city with a population of
over 6 lakhs approximately. Nearest well-developed cities to HUBLI is DHARWAD,
GADAG. KARAWAR. BELGAUM.
from Karnataka & Panaji from GOA, Kolhapur & Sangli from Maharastra. HUBLI is exactly
at the center between Bombay & Bangalore.
STATEMENT OF THE PROBLEM
“Survey report on Customer Expectations and Awareness level with a view to enhance
customer base of ICICI Bank home loan”
Through this project, the sales manager wants to know the factors affecting the sale of
ICICI Bank home loan.
PURPOSE OF THE STUDY

The main purpose of the survey was conducted in HUBLI City to get much
information as much as possible. To know the market share of ICICI Bank home loan.
 To know the customer attitude towards ICICI Bank home loan
 To increase the customer base of ICICI home loan.

OBJECTIVE OF THE STUDY
1) To know the awareness level of customer to words ICICI Home loan
2) To know customer attitude towards rate of interest of home loan
3) To get the suggestion for the improvement of quality of service
4) To improve the customer base of ICICI home loan
5) To know the know the kind of people expected from the ICICI Bank Home Loan
COMPANY PROFILE
Overview:
The Industrial Credit and Investment Corporation of India Limited (ICICI) was founded
by the World Bank, the Government of India and representatives of private industry on
January 5. 1955 to encourage and assist industrial development and investment in India. Over
the years, ICICI's principal business activities include medium-term and long-term project
financing for the infrastructure and manufacturing sectors, corporate finance to meet the
treasury requirements of Indian companies, ICICI set up specialised subsidiaries in the areas
of commercial' banking, investment banking, non-banking finance, investor servicing,
broking, venture capital financing and state-level infrastructure financing.ICICI Bank is
India's second-largest bank with total assets of about Rs.l 12,024 crore and a network of about
450 branches and offices and about 1750 ATMs.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly owned subsidiary. and ICICI BANK was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian businesses. After

consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking -industry, and the move towards universal banking,
the managements of ICICI Ltd alternative for both entities, and would create the optimal legal
structure for the ICICI group's universal banking strategy.
History:
ICICI Home Finance Company Limited was incorporated on May 28, 1999 as 100%
subsidiary of ICICI Personal Financial Services Limited (ICICI PFS). ICICI Home Finance
Company Limited, was set up with the objective of providing long term housing loans to
individuals and corporate. The Company was registered on March 30, 2000 with National
Housing Bank (NHB) under National Housing Bank Act, 1987 in terms of Housing Finance
Companies (HFC) Directions, 1989. With effect from May 3,2002, ICICI Home Finance has
become a 100% subsidiary of ICICI Bank Limited.
OVERVIEW:
ICICI Home Loans are at present available to customers in 5150 cities/towns across
the country. Loans are offered for purchase of new homes, purchase of resale homes and home
improvement. Besides, the company also offers loans for commercial property and loans
against existing property. The loans are offered for tenors up to 30 years. The company has
also introduced several customer friendly services such as 'door-step' service, 'know your loan
on phone' facility and 'ICICI Home Search' - free property brokerage services.
Year In Review:
In the financial year 2013 ICICI Home Finance sanctioned loans totaling Rs.7,388
crores and disbursed Rs. \611 crores. also introduced adjustable rate loans. Documents, which
need to be submitted along with the application form, are:
Personal documents

• DOCUMENTS for HOMELOANS
• Duly completed application form along with the signatures of all the applicants.
• Latest passport size photographs of each of the applicants.
• Photocopies of updated bank statements of all the applicants for the last six months of
both the operating and the salary accounts (if they are separate accounts.)
• Proof of age and residence. The documents which could be submitted for the same
are - Passport, Drivers License, Election ID, PAN Card, Ration card, LIC policy,
School leaving certificate (can only be age proof)
• Signature verification from the current banker as per the format provided by ICICI
Ltd.
 Details of all other obligations and loans taken along with proof of the original loan
amount, outstanding balance, EMI and repayment record
Financial documents: For salaried
individuals:
• Latest Salary slip / certificate with deductions
• Employment details for the last year
For self employed individuals:
• Last three years profit and loss accounts and balance sheets for individual and/or
company/firm as applicable, duly certified by a Chartered Accountant.
• Last three years income tax acknowledgments, both personal and business.

• Advance tax challans if available
• Profile of the business/es on the letterhead. The profile should contain the date of
incorporation of the firm/company, partners/directors, if any, nature of business, list of
suppliers and clients.
« Partnership deed, memorandum of association and articles of association as
applicable.
• Bank statement for the last six months of the operating business account.
Documents of the place of business such as ownership documents like the sale agreement
for the place of business if it is owned, Lease agreement for the office if the property is
leasehold, in case the property is a shop, registered documents giving proof of ownership
under the Shops and Establishments Act or Sales Tax / Excise Duty certificate.
List of the properly documents to be submitted by the borrowers:
Please note -
1) You must retain photocopies of all original documents being submitted by you for your
own future reference.
2) You will be asked to submit further legal documents if required by' the ICICI or their
approved lawyers.
Documents common for all cases
• Original stamped receipts for the payments already made to the builder / seller, till
date.
• 37 I Clearance from the appropriate Income Tax authorities if, applicable.
List of additional amenities from builder where applicable.

Documents for specific cases:
3) Under construction / Direct from Builder:

• Original Agreement with the builder duly stamped and registered (if the same has
been received from the Sub-registrar's office) and the original money receipt issued
by the Sub-registrar, for the registration fee paid by the applicant.
OR
• Pending Registration, following documents to be obtained.
• Certified true copy of the agreement with the builder.
• Original money receipt issued by the Sub-Registrar.
• Acknowledged copy of the authority letter, addressed by the applicant to the Sub-
Registrar (Draft 1 attached).
• Copy of the letter acknowledged by the builder/reseller in case he or his
representative did not accompany applicant to Sub-Registrar's office to admit
registration (To be taken if applicable) (Draft 6 attached).
• No Objection Certificate from the builder on his letterhead. (Draft 2 attached).
• Letter from the builder/architect indicating the latest progress of construction for under
construction cases.
4) Directly in Registered Co-operative Housing Society:
• Original Allotment letter from society specifying the flat number and cost of the flat
allotted.
• No Objection Certificate from the society, on their letterhead, (Draft 3 attached).
• Original share certificate issued by the society (if issued)
5) Purchased in resale:
a) Where society has not been registered

b) In a registered co-operative society :

c) Previous chain of Sale Agreements, (original / copies). ♦ Present Agreement in
original, between the vendor and purchaser duly stamped and registered.
OR

6)Directly from any Development Authority
 Original allotment letter from the Development Authority.
 No objection certificate from the Development Authority (as per their own format).
Original receipts, issued by the Development Authority, for the payments made for
the flat.
7) Construction of house on a separate plot of land

 Original registered Sale deed / Lease deed / Partition deed / Gift deed under which the
plot of land has been acquired by you
 Original receipts for the payment made for the plot, if separately available.
All previous documents of title-in respect of the plot in your possession.
7/12 extract of Property card as applicable for the property along with the record of
Right in form no6
• N. A. permission & latest N. A. tax receipt. Title report for

the property under consideration.
• Detailed estimate of the cost of the project.
• Approved building plans.

Any other legal document required by ICICI or ICICI's approved lawyers in order to
certify a clear title.
Eligibility for Home loan
« You must be at least 21 years of age when the loan is sanctioned.
« The loan must terminate before or when you turn 65 years of age or before retirement,
whichever is earlier.
« You must be employed or self-employed with a regular source of income.
Land loan
• You must be at least 21 years of age when the loan is sanctioned.
• The loan must terminate before or when you turn 65 years of age or before retirement,

• You must be employed or self-employed with a regular source of income.
• You must be purchasing a plot of land for residential use.
• The purchase has to be from a development authority or from a registered co-
operative society.
• The purchase of the land must be for the construction of a house.
• The plot of land must be clearly demarcated with clear boundaries.
• Office premise loan
• The loan must terminate before or when you turn 65 years of age.
• You must be self-employed with a regular source of income.
• The loan can be for the purchase / construction / extension of a non-residential
property.
• A loan for renovation or improvement will be given only at the time of acquisition of
property.
• Professionally qualified and self-employed individuals (doctors, pathologists, chartered
accountants, cost accountants, company secretaries, architects, engineers, consultants,
lawyers, chemists) can apply.
• A minimum of 3 year's work experience is a must.
Home Equity Loans
• The loan must terminate before or when you turn 65 years of age or before retirement,
• Your must be employed or self-employed with a regular source of income.

• You must be the owner of a self-occupied property.
A number of factors are taken into account when assessing your repayment capacity. Your
income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity
of your employment/ business are some of them.
However, there are ways by which you can enhance your eligibility.
• If your spouse is earning, put him/her as a co-applicant. The additional income shall be
included to enhance your loan amount. Incidentally, if there are any co-owners they
must necessarily be co-applicants.
• Did you know that your finances income can also be considered for sanctioning the
loan on your combined income? The disbursement of the loan, however, will be done
only after you submit proof of your marriage.
• Providing additional security like bonds, fixed deposits and LIC policies may also help
to enhance eligibility.
While there is no need for a guarantor, it could be that having one might enhance your
credibility with us. If so, our loan officer would provide you with the necessary details. The
final amount to be sanctioned will depend on your repayment capacity. However, what you
ultimately are entitled to will have to conform within the limits fixed for each loan. Also,
when the company looks at the total cost, registration charges, transfer charges and stamp duty
costs are included.
Sanctioning
Documents
♦ Passport size photograph.
♦> Age verification: PAN card, Voters ID, Passport, License.
♦ Bank statement for the last six months.
♦ Income Documents e.g. Latest Form 16, Certified IT returns for latest 3 years.
♦ Processing Fee cheque.
♦ Loan Enclosure letter.

These are the documents required for sanctioning a loan. You may be asked to submit further
legal documents if required by ICICI or its approved lawyers.
Your loan will be disbursed after you identify and select the property or home that you
are purchasing and on your submission of the requisite legal documents.
While you may be under the impression that the list of documents asked for is rather
extensive, please note that it is for your own good. Each and every single document asked for
will be verified and checked to ensure your safety.
This may take some time but we want to ensure a clear title and will complete all the
legal and technical verifications to ensure that you have full rights to your home.
On satisfactory completion of the above, on registration of the conveyance deed and
on the investment of your own contribution, the loan amount (as warranted by the stage of
construction) will be disbursed by ICICI.
The disbursement will be in favour of the builder/seller.
List of documents for disbursement
Standard-documents:
• Loan Agreements
• Disbursement Requests
. Post- dated cheques
• Personal guarantor's documents, as the case may be
Some documents are specific to each state. For further information, please contact the nearest
office.

Repayment
What is the repayment tenure?

Home Equity Loans - Maximum loan tenure of 15 years.
Office premise loan - Maximum loan tenure of 15 years.
Home loan - Maximum loan tenure of 30 years
How is the loan repaid?
All loan repayments are done via Equated Monthly Installments (EMI).
What is an EMI?
An EMI refers to an equated monthly installments. It is a fixed amount which you pay every
month towards your loan. It comprises of both, principal repayment and interest payment.
When does the repayment start?
EMI payments start from the month following the month in which the full disbursement has
been made.
How is the EMI paid?
The EMI is to be paid ever}' month through post-dated cheques (PDCs) or direct
deductions from your salary. If you are opting for PDCs, then you will have to provide 36
upfront. The PDCs are to be dated on the I s' of every month. However, if you receive your
salary a few days later, no problem. We provide the flexibility of dating the cheques for the 7 th
of the month.
What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and outstanding dues will be
charged as per the prevailing company policy. You can replace old PDCs with new ones
within 5-7 working days.

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on the
disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till
the final disbursement is made, after which the EMIs would commence.
When do I pay PEMIs?

The first PEMI is payable by cheque by the end of the month in which the
disbursement is made and each subsequent PEMI at the end of every month till the
commencement of EMI.
Interest Rates for Resident Indians
Adjustable Rate Loans Home Loans /
Land Loans:
The interest rate on ICICI Bank Home Loans / Land Loans is linked to the ICICI Bank
Floating Reference Rate (FRR) and moves up or down with the FRR.The FRR for ICICI
Bank Home Loans is currently 7.75% p.a.The EMI table for Adjustable Rate Home Loan /
Land Loan is given below:
Tenure (yrs) Rate of Interest * EMI per Lac

Upto 5 years 7.50 % 2004
6-10 years 7.50 % 1188
11-15 years 7.50 % 928
16 - 20 years 7.50 % 806

• 0% Processing Fee
• Interest calculated on the basis of monthly rest. «

Maximum tenure of 20 years.
• No fee for part prepayment.
• Interest rates would be adjusted periodically with change in FRR .
Interest rates for fresh adjustable rate home loans for loan amount greater than Rs.5
lakhs. Conditions apply.
Office Premises Loan:
The current rate of interest for these loans is 9.75% for all tenures. The interest rate on
these loans is linked to the ICICl Bank Floating Reference Rate (FRR) and moves up or down
with the FRR .
The EMI table is below:

Upto 5 years i 9.25% 2113
given
6-10 years 1 9.25% 1308 ..
11-15 years i 9.25% 1060
i
• Interest calculated on the basis of monthly rest.
• Maximum tenure of 15 years.
• A pre-payment fee of 2% on the amount prepaid, either in part or full.
Home Equity Loans:
The current rate of interest for these loans is 9.15% for residential property and
10.25% for commercial property. The interest rate on these loans is linked to the ICICl
Bank'Floating Reference Rate (FRR) and moves up or down with the FRR .

The EMI table is given below
Tenure (yrs) ROI EMI/lac j ROI EMI/lac
Upto 5 years 9.75% 2113 10.25% 2138

6-10 years 9.75% 1308 10.25% 1336
11-15 years 9.75% 1060 10.25% 1090
Interest calculated on the basis of monthly rest.
Maximum tenure of 15 years.No fee for part prepayment.Fixed Rate Loans
Home Loans / Land Loans:
The EMI table for Fixed Rate Home Loans / Land Loans is given below :
Tenure Rate ! EMI

Upto 5 years 7.50% | 2004
6-10 years 7.50% ! 1188
1
11-15 years 7.50% ii 928
16 - 20 years 7.50% 806
21 - 30 years 8.50% 769
Interest rates for fresh fixed rate home loans for loan amount greater than Rs.5
lakhs.Conditions apply.
• 0% Processing Fee
• The Interest rate is calculated on a monthly reducing basis.
• No fee for part prepayment.

ICICl Home - Floating Reference Rate
• The ICICl Bank Floating Reference Rate is currently 7.75% p.a.
ICICl Home Loan offers following types of loans
Home loans Office premise loans
Loan against property Loan for
NRIs Balance transfer Land loans
Salary certificate (in English) specifying name, date of joining, designation and salary
details. You can take a stamp duty loan for paying the stamp duty on your purchase of a
home. Stamp duty range between 10-12% of the purchase cost of the home. It can be very
substantial in cities like Mumbai and Delhi where the price of real estate is high. If you want
to add a floor to your present home or expand it, you can take a Home extension loan.
If you want to repair your present home, you can take a home repair or Improvement
loan .Some lenders are offering home conversion loan, where you can buy a Jigger home
without prepaying the loan on the existing home. Your existing loan is transferred to your
new home and you get additional finance as required.
The type of loan depends on :
• Purpose of the Loan
• Nature of the Loan (Term Loan or Overdraft)
• Nature of Interest (Floating or Fixed)
Interest Rate (Daily, Monthly, Quarterly, Semi-Annually or Annually Reducing Balance)

Purpose of the Loan :
Loan from banks and Housing Finance Companies (HFC's) can be taken for the following
reasons -
• Construction of Property
• Purchase of Property
. Site Loans
• Extension of Property
• Repairs and Maintenance of Property
Nature of the Loan - Most of the HFCs offer term loans, banks offer both term loan
and overdraft facilities. In case of Term Loans, the loan amount is fixed and interest is
charged on the whole loan amount. You should opt for a term loan when you want to make
a fixed installment payment for the property. An ideal situation for term loan would be
buying of an under construction or ready property where the loan amount you will opt for
is known in advance. Over draft facility is preferred where the amount required is not
determinable, for eg. when the loan is taken for repairs and maintenance.
Term Loan:
Pros
• The period of term loan can go up to 30 years.
• Once the loan is disbursed there is no yearly review. Cons
• In case of earlier payment, pre-payment charges are levied.
• A fixed liability is created every month this takes away flexibility.
• Interest is charged on full amount of loan though it may not be utilized.

Overdraft Facility
Pros
• Interest is charged only on the amount drawn.
• There is no fixed liability every month.
• The loan can be repaid earlier without any pre-payment charges. Cons
• The loan facility is restricted to one year. It may be renewed after
bank reviews the facility.
There is a commitment charge involved, and if the loan facility is not availed a
commitment fee is will be charged.
• The interest rate is higher than interest charged on term loan.
Nature of Interest - Fixed Rate Plan
In fixed rate plans, the rate of interest remains the same through the tenure of the plan. Keep
these points in mind while shopping around for the loan 1) Calculate EMI
1) Processing and other fee :
While applying for a loan, you have to pay a certain charge on the amount applied
for. The charge is calculated on the amount of loan applied for and not on the amount
actually sanctioned. This charge varies with the lender and may be a fixed amount
irrespective of the amount applied for or may be a percentage of the loan applied for. This
amount, paid upfront, effectively reduces the money you get.
This can make big difference in the real cost of the loan. Look for the lowest fees lenders.

2) Commitment fee
In case you've got your loan sanctioned, before buying a flat or your builder is not
delivering the property on schedule, some lenders may lev}' a commitment fee on the loan
amount sanctioned.
3) Prepayment penalty
Generally if every thing else is same, try to get a lender who doesn't charge a
prepayment penally. This is a great way of getting rid of your debt in case your fiscal fitness
improves. Also if the interest rates fall, you can go for replacing the higher cost loan with a
lower cost one.
Documentation required
by the lenders Common (for salaried as well as self-employed borrowers)
Proof of Age
Proof of Residence
Photograph
Bank Statements for the past six months For salaried borrowers
Latest salary slip or statement
Form 16 For self-emploved borrowers
I-T returns for the last 3 years
Balance sheet for the last 3 years
P&L accounts for the last 3 years
Tax challan for the last 3 years Flat and house
Sales affidavit/ letter of allotment in case of society or association of persons
Original vendor's sale deed
Original sale agreement
I-T clearance as the case may be

• Encumbrance certificate
Buying a home is surely a big drain on your pocket. But fortunately you have a very
unlikely ally on your side, the Government. It has made great tax laws to make owning a
home a lot more affordable.
You get a tax exemption on interest paid upto Rs. 100,000 p.a. on a new home bought
and possessed before April 1, 2003. If you are in the middle of an existing loan the old limits
continue.
Also you get a 20% tax rebate on principal repayments upto Rs. 20,000 . So you get a
maximum tax rebate of Rs. 4,000.
Refinancing:
There are various kinds of insurance covers available for a home owner. The various
options may be insurance against fire, against other disasters, burglary, etc. many lenders
may insist on getting your home insured to safeguard their interest. In case the house is
destroyed in a fire and you decide lo leave that behind along with your loan, the lender will
be left high and dry without any collateral.
Apart from getting the mandatory ones you should try to get insurance as per your
circumstances. Like if your not living in quake prone or riot prone area you might want to
skip taking their insurance cover.
New Vs Old Home

One of the main advantages of a new home is... it's new! Another advantage is the
design process. If you sign a new home contract early enough in the building process, you
can make some, if not all, of the decisions about the design.
In case of new but unsold home, your bargaining position is quite strong, as the
builder wants to liquidate his flats and move on.

How Much You Can Afford ?
The first step in finding a home is figuring out how much you can afford. It probably
means you're going to take a home loan. As it happens there is wide gap in what you need
and what the bank is willing to lend you. The amount of loan the bank gives you depends on
three things: income, credit worthiness, and collateral. The bank would like to know:
1. If you make enough money to pay back the money,
2. What's your risk profile, and
3. If you have a co-guarantor or something of value should you be unable to pay back.
In general, the lender will want you to come up with at least 15% of the value of your new
home for a down payment before he will give you a home loan. The lender will plug your
income numbers into a couple of formulas to determine your repaying capacity. He will have
some norms for deciding your upper limit of loan, like your take home salary after loan
repayment should be more than 50% of your gross income, etc.
The bank will have to wait for 15 years or so for getting its money back. So it would
like to make guesses about your future repayment capacity also. It may depend on various
factors, subjective as well objective, such as the kind of job you have, whether you are
salaried or self-employed, your family background, etc.
• Your debt
Your ability to come with the cash The lenders will not give a loan for the full purchase
price of the home. They require you to contribute some of your own money upfront, this may
be in the range of 15-20% of the home price. You also have to pay 2-3% of loan amount in
processing and other fee.

• Your income
Lenders want to make sure that you earn enough to pay the costs of owning a home.
For this they may compare your monthly loan repayments with your gross salary. Generally
your take home salary should not be less than 40% of your gross salary after making all loan
payments.
The lenders also want to see that you are not burdened with lots of debt. That's why
they look at your monthly debt commitments, such as auto loan payments, personal loan
payments, etc.
• Your job history
Lenders like people with steady career path. If you hop jobs too fast you may miss a
point or two in your credit report.
The various parameters of a housing loan are tenure, amount and interest rate.
The tenure of a loan tells you that how long will it take to pay off the loan. In India
generally the maximum tenure of the home loans is 15 years, with a few lenders offering
tenure of 20 years, 1CICI has recently launched a 30 year loan. The longer the tenure, more
There are two kinds of loan possible:
fixed rate loan and adjustable rate loan.
In fixed rate loan, the interest you pay on the loan remains constant through out the
tenure of the loan. In adjustable rate loan, the interest rate may vary depending on the
underlying benchmark. A benchmark is an interest rate that is used for calculating the
interest rate. The lender while giving out the loan decides the time period after which the
interest rate is changed, known as reset frequency.

Choosing between a fixed rate and an adjustable rate loan depends on your future
views of the interest rate. If you think that interest rate in future will fall from the present
levels, adjustable rate loan will make sense. Otherwise in lower interest rate period locking
your loan at a fixed interest rate is a good idea. Any way as adjustable loan rates are not
available widely in India, it's a non-issue. I have written about it, just to make you future-
proof. The monthly payment you make on your loan is known as EMI, Equated Monthly
Installment. It is constant over a period of time. EMI increases with increasing rate of
interest and reduces with increasing tenure.
The option of prepaying the loan is always there, it means repaying the entire loan
amount before its due. Some lenders charge prepayment penalty and others do not. It is
generally better to take a loan without prepayment penalty, as in case the interest rates fall
you have the option of refinancing the loan. More about it later.
Before the disbursement you will have to submit to the lender all legal papers of the
property along with the agreement with the seller of the property. If you are buying a flat you
may be asked to provide a No-Objection Certificate (NOC) from the housing society.

ORGANIZATION CHART
CEO
Regional Manager
Zonal manager
Branch Manager
Territory Manager
Area Manager
Sales Manager
Asst /Unit Manager
Agency
Manager
Unit manger
SAMPLING

 Stratified random sampling method
 Sample size100
 General customer and existing customer of ICICI Bank
SAMPLING PROCEDUREF from large number of customer in Belgaum City were we

select stratified random sampling
FIELD SAMPLING.
Directly approached respondents
Research Design
Selection of data collection method
Primary data:
for a study of this nature of data is primary data it is collected through by making survey,
which is the systematic collection of information directly from the respondent
Secondary data:
 Information from the company broachers
 Information collected from website other which is pert pertaining housing finance
company
 ICICI Bank Records ,reports and magazine

SELECTION OF MEASUREMENT TECHNIQUE
Quantities analysis, bar, and pie chart
Limitation Of Study
Since sample size is only 100 which is not representative of the population as whole.
Information partly based on secondary data and hence the authenticity of the can be
visualized and is measurable.
Level of accuracy of the results restricted to the accuracy level with which the
customers have given their answers and the accuracy level of the answers cannot be
predicted. It is quite difficult to convenience some people the data was collected for the
purpose of survey only. Some degree of skepticism in customer mind. Employees of some
housing finance companies hesitated to furnish the information.
ANALYSIS OF GRAPH
The sample size selected survey was100.the respondent are general customer and some
existing customer of ICICI bank.
Were available survey at their opinion was taken to know customer expectation and
awareness level of ICICI bank

Awareness level
Interpretation:
According to the survey 97% people aware of ICICI Bank& remaining 3% not aware of
ICICI Bank.
Types of Loan
Interpretation:
100% respondent aware of home

85%respondent aware of vehicle loan
75%respondent aware of two wheeler loan
67%respondent aware of personal loan
48% respondent aware of educational loan others is 0

Customers of ICICI bank
Interpretation
Out of 100 respond 40 %respondent of ICICI Bank
Have you availed home loan of ICICI bank
Interpretation
Out of 40 respondents 21 respondents are availed home loan form ICICI

Bank
The Percentage Of Respondent Who Are Aware Of ICICI Bank Providing Home
Loans For The Below Options.

Interpretation
According to my survey out of 21 respondent 20 respondent are aware of ICICI Bank home
loan even provide fund for purchase a Flat , land ,renovation of home & Extension of home
But 4 respondent aware of office purchases commercial premises purpose
Type of loan preferred
Interpretation
Respondents have given equal impotents for both long term & short term loan offered by
ICICI bank

Reasons for taken the home loan from ICICI bank
Interpretation:
According to survey 75%respondents say that easy accessibility and wide range of product,
remaining 25%respondents feel that tenure.

Rate of interest of ICICI bank home loan
Interpretation
Above graf show that out of 21 respondents 71% of respondents say that ROI of ICICI
bank home loan is high remaining 6 respondents 29% the rate of interest of ICICI bank is
moderate.
Satisfactory level of ICICI home loan
Interpretation
Out of 21 respondents 13 respondents are not satisfied by ICICI bank home loan But 8
respondents are satisfied with ICICI bank home loan.
Availing of home loan

Interpretation
According to survey 65% respondents are availing period 1-5 year & 15% respondents are
availing period 6month,10% respondents are availing period 6-10
Overall Grade ICICI bank home loam
Interpretation
According my survey 80% respondents are say that performance of ICICI bank is Ok, 10%
respondents are say that performance of ICICI bank is Good & 10% respondents are say that
performance of ICICI bank is Bad.

Reason behind preferring the other bank
Interpretation
According to this survey 40% respondents preferring other banks for Rate of interest & 20&
respondents preferring other banks for Service & 25%respondents preferring other banks for
Reference.

FINDINGS
 out of 100 respondent 97% of respondent aware of ICICI Bank it is really good point for
the company view
 100% respondent aware of home loan
 out of 100respondent 40%of the respondent are the customer of ICICI Bank
 out of 40 respondent 21 respondent have availed home loan of ICICI Bank
 out of 21 respondent 20 respondent are aware that ICICI bank home loan even provide
for purchasing of flat , purchase of land ,renovation of home& exetension of home
 only 3 respondent are aware that ICICI bank home loan even provide for office purchase
and commercial premisis purpose.
 Respondent have given equal importance for both long term and short term loans offered
by the ICICI bank.
 18 respondents says that the reason for the taking the home loan from ICICI bank is easy
accessibility and wide range of product offered by the bank. and 3 respondent says that
the reason is tenure.
 15 respondents feel that rate of interest of ICICI bank is high and remaining 6
respondents feel that as moderate.
 13 respondents are not satisfied by the ICICI bank home loan.
 17 respondents says that over all performance of the ICICI bank home loan is ok.
 79 respondents have prepare other bank mainly because of low rate of interest, quality of
service and reference.

SUGGESTIONS
 The rate of interest should be minimized for the benefit of the customers.
 Sales executive should give correct information to the customers. Regarding the
processing fees and administration fees. their should not be hidden charges.
 ICICI must keep in more frequent touch with customer after the disbursements of the
loan. They should have customer relationship management policy.
 Maintain the aggressive promotional activities to attract new customers.
 The respondent not having clear information about home loan. So bank must give
litter importance to advertisement such as T.V advertisement Wall magazines and bill
board etc
 The service of the ICICI bank must be improved

CONCLUSION
One of the basic needs of human being is shelter. On wants to live always in a house of his
own rather than in a house in a house where he has to pay rent.
So here there is an opportunity for ICICI bank to promote home loans to the customers who
are in the need to buy a house.
So ICICI should promote its advertising in the commercial area to make the customer aware
about ICICI home loan.
BIBLIOGRAPHY
The data was collected from the websites given below:
www.ICICI.com
www.apanloan.com
www.icicibank.com
www.google.com
www.ICICIbankhomloan.com

PROFILE
Dear sir/madam
I am pleased to introduce myself RANGANATH. MANAGOOLI. MBA student of
SIKKIM MANIPAL UNIVERSITY DE from BIJAPUR as a part of Curriculum I have
undertaken a research study the “Survey Report on Customer Expectations and
Awareness level with a view to enhance customer base of ICICI Bank home loan” The
information provided by you will be strictly kept confidential and used for academic purpose
only.
NAME: RANGANATH MANAGOOLI ADDRESS: HOUSING COLONY

AGE
CITY: BAGALKOT AGE: 39 years
OCCUPATION: DRA IN ICICI BANK MOBILE NO: 9845913612

QUESTIONNAIRE
1)When the established ICICI BANK ?
Ans= In January 5 1955.
2)How many are there HFC in india ?
Ans=there are 29HFC in india.
3)what are the type of home loan available ?
Ans= 1 home purchase loan. 2 Home improvement loan. 3 Home construction loan.
4Home extension loan. 5Home transfer loan. 6land purchase loan. 7Refinance.loan.
4)What are the documents required ?
Ans=proof of age. Proof of residential. Photo. Bank statement. Past six months latest salary
slip. IT return for last 3 year. balance sheet for the last 3 year. Original sale deed.
5)what is the meaning of EMI ?
Ans= equated monthly installment.
6)what type of loan depends on ?
Ans= purpose of the loan. Nature of the loan (term). Nature of the interest(fixed).

ICICI BANKHOME LOAN Project (Final)

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ICICI BANK HOME LOAN

<ICICI BANK HOME LOAN>

Under the guidance of

in partial fulfillment o f the requirement

<JUNE> & <2013>

RANGANATH MANAGOOLI. MBA, SMUDE

bonafide work of “RANGANATH MANAGOOLI” who carried out the project

KETAN S. SHAH A .M. SHAIKH

RANGANATH MANAGOOLI. MBA, SMUDE

INTERNAL EXAMINER EXTERNAL EXAMINER

RANGANATH MANAGOOLI. MBA, SMUDE

RANGANATH MANAGOOLI. MBA, SMUDE

Today, besides housing financing agencies number of non banking financial

them to realize the cherished dream of owning abode.

RANGANATH MANAGOOLI. MBA, SMUDE

HOUSING SCENARIO IN INDIA:-

RANGANATH MANAGOOLI. MBA, SMUDE

directly or indirectly dependent on the housing sector.

There is an estimated shortage of 20 million housing units in the country with an

estimated investment requirement of over Rs 1500 billion. In this context it is important to

fueled the growth:

• Ever increasing middle class, migration of population and increasing urbanization

RANGANATH MANAGOOLI. MBA, SMUDE

finance industry. They are as follows:

RANGANATH MANAGOOLI. MBA, SMUDE

LIST OF APPROVED HOUSING FINANCE COMPANIES

2. BOB Housing Finance Ltd

3. Can Fin Homes Ltd

4. Cent Bank Home Finance Ltd

5. Corporation bank Homes Ltd

6. Dewan Housing Finance Corp.Ltd

7. GIC Housing Finance Ltd

8. GRUH Finance Ltd

9. GLFL Housing Finance Corp. Ltd

10. Global 1 lousing Finance Corp. Ltd

1 1. Happy Home Profin Ltd

12. Housing Development Finance Corp. Ltd

13. Housing and Urban Development Corp. Ltd

14. Home trust Housing Finance Ltd

15. Ind Bank Housing Ltd

16. LIC Housing Finance Ltd

17. Livewell Home Finance Ltd

18. Maharishi Housing Development Fin. Corp. Ltd

19. Mercantile I lousing Finance Ltd

20. Orissa Rural Housing & Development Corp. Ltd

21. Parashwanath Housing Finance Corp. Ltd

22. PNB Housing Finance Ltd

23. Peerless Abasan Finance Ltd

RANGANATH MANAGOOLI. MBA, SMUDE

24. SBI Home Finance Ltd

25. ICICI Home Finanace

26. Saya Housing Finance Company Ltd

27. Vyasya Bank Housing Finance Ltd

28. Vij ay a Home Loans Ltd

29. VI Bank Housing Finance Ltd

30. Weizmann Homes Ltd

What are the types of Home Loans available?

A loan for ready built house / flat

renovations in a home that has already been purchased by you.

addition of an extra room, etc.

construction or investment purposes.

RANGANATH MANAGOOLI. MBA, SMUDE

the option of a loan with a lower rate of interest.