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1) Home loans for construction of new house / flat, purchase of old house/ flat:

Initially, lenders approved a home loan for family/own residence only. After gaining
experience and more importantly to be competitive, lenders now approve loans even when
the applicant has more than one house or flat/apartment. Today there is no general restriction
on the number of houses owned by an individual. The only stipulation is that the home loan
funds should not be used for commercial purposes.

2) Home extension loan:
These loans are given for expanding or extending an existing home. These are some of
the instances for which you could take an Extension Loan.

• To construct an additional room or floor by getting additional FSI granted.

• Using grills or sliding windows to enclose the balcony.

• Construction of a garden or garage in the building vicinity.

3) Home improvement loan:
Home improvement loans for repairs /renovation including waterproof, plumbing, compound
wall, digging of well/tube-well, flooring/tiling, additions like built-in cupboards /shelves,
internal repairs including replacing doors/windows, etc. A loan for purchase of household
furniture including space-saving furniture (kitchen racks, cupboards) may also be sanctioned
as a home improvement loan.

4) Home loan for purchase of housing site:

Here again, initially many banks did not approve such loans. However, market forces have
now made this a universal feature of the home loan market. However, care has been taken in
structuring the schemes for avoiding financing for purchase of land for speculative lotion
5) Home equity loans:

A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower
uses the equity in their home as collateral. These loans are sometimes useful to help finance
major home repairs, medical bills or college education. A home equity loan creates a lien
against the borrower's house, and reduces actual home equity.

Home loans
of new house
/ flat

Home equity

Home loan
for purchase
of housing

Submit an Application form along with relevant documents:

The company will process customer’s application to check the loan eligibility based on the
persons income and personal profile. Usually an up front (non –refundable fee) of about 0.5-
1% of the loan amount must be paid before processing begins.


Verification of the property and supporting documents:

A company representative may visit the property as well as the residence to vary information
submitted in the persons application form. Further, a property valuation maybe carried out by
the company to determine the maximum amount they are willing to lend you. Any references
submitted by the person in the Application Form may also be contacted. The person may be
personally interviewed and any further clarifications in the documents submitted maybe


Sanction of the loan:

A sanction letter is issued which the customer will have to sign. This letter will contain the
amount and the terms of the loan. Some companies specify the period for which the loan
sanction is valid. The person will have to pay a Commitment fee (normally 1% of the
unutilized loan amount) if you do not draw on the entire sanctioned amount before that


Submission of the original Property documents and signing the loan agreement:

The customer will be required to leave the title deed of the property with the company as a
security for the loan. He will be required to go to the company’s office to execute the legal
loan papers.


Disbursal of the Loan cheque:
The person can draw the loan in parts depending on the stage of construction of the building.
Until such time that the entire sanctioned amount is NOT drawn, you will pay a simple
interest on the Actual Amount drawn (without any principal repayments). The EMI payments
will commence only after the entire Sanctioned Loan Amount is drawn.

Rate of Interest:
The lender decides the rate of interest chargeable on the home loan, taking the following
into consideration:

1. Cost of funds:
The cost of funds is different for each lender, depending upon the mix of liabilities, liability-
raising costs (based on the image of the bank in the market) and with different costs in
different maturity buckets.

2. Tenor of the loan:
Generally, banks have borrowed funds with maturities up to 5 years, and some capital fund
surpluses, which may be available for allocation to home loan assets.

3. Capital allocation costs:
Banks are required to allocate capital based on the risk weight of each class of asset taken on
to the balance sheet.

1) A simple registered mortgage or equitable mortgage on the property acquired out of the
loan is taken as security. This is the primary security for the loan.
2) In case of flats of a group housing society, triparilite agreement shall be entered into.
In case of jointly owned properties, it should be ensured that all the co-owners and co -
Applicants execute the documents.

FOIR is a parameter that banks use to calculate the loan eligibility. While estimating home loan
eligibility, all the fixed obligations (that he pays monthly/ daily) of the applicant are taken into
account (i.e. installments of all running loans including the home loan applied for are excluded
from the eligible income). The statutory deductions are excluded while calculating FOIR. The
loan amount bank extends to you depends on your FOIR rating.

The monthly repayment by the applicant is related to his cash flow. There is an element of
interest and of principal in the monthly payments. The interest payable over the period of the
loan is calculated and added to the loan amount to arrive at the total payable amount .this
amount; divide by the total number of monthly installments is called EMI.

Acquiring a Home Loan doesn’t only involve the cost of home loan interest rates but it also
includes other charges & fee accompanying at various stages of taking the Home loan. You
must consider all these charges while comparing the cost structure across banks. Following is
the detailed fee structure incurred by banks at different loan stages:

• Processing Charge:

It is a fee payable at the time of submitting the loan application to the bank which is normally
non-refundable. The fee ranges between 0.5 per cent and 1 per cent of the loan amount.

• Administrative Fee:

It is a fee incurred by banks at the time of loan sanction; there are few banks who have
removed this fee so you must check it with all the banks.

• Prepayment Penalties:

When the borrower pre-pays the loan before the loan tenure, banks charge a penalty which
usually varies between 1 per cent and 2 per cent of the pre-paid amount.

• Legal Charges:

Banks also incur some charges from the customer for legal and technical verification of the

• Delayed payment Charges:
When there is a delay in the payment of your EMI, banks charge a late payment fee from the
borrower which normally ranges from 2% to 3% of the EMI.

• Cheque bounce charges:

Banks charge between Rs. 250 and Rs. 500 for every bounced cheque towards the loan
payment because of lack of funds in your account.

• Credit History:

Your chances of getting a home loan are increased if you have a good credit history which is
known by banks by checking the borrower’s Cibil score. Now it is very hard to get a loan
from another bank when you already have a bad debt with one bank.

• Clubbing of income:

Your eligibility to take a home loan will augment when you club your income with your
spouse’s income, bank in this case will calculate your eligibility on the basis of the clubbed
income of both the applicants. You can club incomes of spouse, children & parents staying
with you and having regular income.

• Enhance your loan tenure:

Longer is the loan tenure, lower will be the EMIs which further increases the repayment
capacity of the borrower & in turn enhances the loan eligibility.

• Step-up Loan:

In this type of loan EMI's remain low in the beginning & increase gradually as and when the
borrower’s spending power increases. Therefore lower EMI's in the initial years enhances the
borrower’s ability to pay & further increases the loan eligibility

• Increase the down payment:

You must know that in a home loan bank finances only 85 to 90% for the property & the rest
amount has to be funded by the borrower. You should increase the down payment if you
have more than required amount which will mitigate your debt considerably.

Past record:
The home loan borrower enjoys Tax Benefits on both Interest paid & the Principal re-paid.
Under Section 24(d) of Income Tax, the deduction of interest payable on the home loan is up
to a maximum of Rs. 1, 50,000.Under Section 80(c) of Income Tax, Principal amount for the
repayment of loan along with other savings & investments is eligible for tax deduction up to
a Maximum limit of Rs. 1, 00,000.

Recent changes:

According to the new policy changes of the direct tax code bill introduced in the parliament
in the month of august 2010 only up to Rs 1.5 lakh deduction is allowed on the interest paid
on the housing loan and there is no deduction available on the principal amount. So if your

equated monthly installment is Rs 1.50 lakh, comprising interest and principal outgo of RS
75000 each, you can avail deduction of only the interest.


Home Loan Market:
The home loan market in India has grown at a rapid and alarming rate of over 40% over the
period of the last four years. And from the reports from some of the industry experts, it is evident
that there is very little chance that there will be any significant decline in growth rates in the
future. Therefore it becomes important at this point in time to examine the key factors that have
been instrumental in triggering this high growth period. There are several reasons that can be
considered as having attributed to the growth of the home loan market. On the demand side, the
first and the most important factor for the growth has been faster rise in incomes as compared to
property prices, thus making housing more affordable.

Another important factor that has contributed to the growth of the home loan market is the
declining interest rate. This factor has also been instrumental in greatly reducing the cost of
servicing a loan. An additional factor is that of the Tax benefits, which have caused a further
reduction of the effective cost of borrowing both on interest as well as the capital. Examining the
factors on the supply side, we see some of them have played a very big role in supporting the
growth of the home loan market in India. The most important supply side factor is of more
competition in the housing finance sector. This has in fact resulted in the companies charging
lower interest rates. The lower interest rate are offered in fact sometimes even at the cost of the
spread or profit margin. Another important supply factor that has been responsible for the growth
of the home loan marker is the fee that is charged by the financial institutions for getting a home
loan. This fee has reduced dramatically over the last couple of years, from over 2% of the loan
amount to as low as 0.25%. In fact, some companies are known to waive off the fee entirely.
Most of the housing finance companies in India have introduced several new home loan products
in order to meet the needs of a wide variety of customers. Another factor contributing to the
growth of the home loan market is the increasing collaboration between housing finance
companies and builders. Such partnerships minimize service and funding related costs.

Structure of Real Estate Industry:

The broad structure of the real estate industry is given below:
The space is served reasonably well by most of
Residential Space the banks and HFCs. This is Very competitive
on rate unless geographical arbitrage route is
taken. dominated by salaried individuals

Commercial space is dominated by Self
Employed category. Banks are present in the
Commercial Space segment but with limited appraisal
mechanism. Product arbitrage opportunity for

Fragmented with Few national players. Large
to medium corporates form dominant
customers in this segment. These customers
Retail Space
are well served while purchasing the property
Real Estate Sector or lease rental market also is well established
and competitive.

Competitive space with many players
over 1,30,000 hotel rooms as of 2013
Hospitality Space Growth around 12-13 %. Dominated by large
corporates. Scope for NBFC with large ticket

Formal approval to 577 SEZs
SEZs Majority of SEZs in IT/ITeS sector
Scope for NBFC with large ticket size

Mumbai City Overview:
The commercial capital of India, Mumbai is one of the fastest growing cities in the country. The
city comprises an archipelago of seven islands amalgamated with the northern lands to form
down town South Mumbai, North Mumbai with suburbs Navi Mumbai and Thane. Being well
connected to key global cities makes Mumbai a gateway to India. Besides port related trade
activities, Mumbai has also been the entertainment capital of India. Important financial
institutions like the Reserve Bank of India, the Bombay Stock Exchange, the National Stock
Exchange and the headquarters of many Indian corporates including a number of FMCG
corporate are located here. It is also an important location for multi-national companies entering
the Indian market.
Over the years, the residential demand shifted from South Mumbai to North Mumbai on account
of the fresh supply and comparatively lesser capital values. Further, developments like widening
of the Mumbai-Pune highway has led to extensive development along this corridor. This also led
to the development of various Locations across Navi Mumbai. The expansion of the IT/ITES and
BPO sector in the city, increase in double Income families, disposable income of general
workforce, easy availability of home loans, etc. collectively Thereby lent optimism to the
Mumbai real estate market. While most of the earlier developments provided just the basic
amenities, newer ones had a large amount of added features where the buyer aspired for a higher
level of luxury, be it in the heart of the city or in the suburbs of Mumbai. The high-end
residential market is concentrated in South Mumbai locations, viz. Malabar Hill, Napeansea
Road, Cuffe Parade, Altamont Road and Central Mumbai locations of Prabhadevi and Worli.
Suburban Locations of Bandra, Khar, Santacruz, Juhu and Versova are sought after residential
locations due to excellent Social infrastructure and their proximity to the airports and the
suburban business districts of Bandra Kurla Complex, Andheri and Powai-Vikhroli. Other
western suburban locations of Goregaon, Malad, Kandivali and Central suburban locations of
Powai, Ghatkopar, Bhandup and Mulund have witnessed large scale Developments in the
residential sector. A noticeable trend among many developers is the creation of entire Townships
in areas with availability of vast stretches of land. Locations like Thane, Vasai and Virar have
seen the development of many such townships.

Buyer Profile:

The potential buyers reveal various household characteristics giving us an indication about the
demographic profile of the residents of Mumbai. The people who belong originally to the city
comprise 43% of the sample. Of the 57% who are not originally from Mumbai, a startling 93%
have shifted to the city for job purposes. 72% of the migratory population have been residing in
Mumbai for a period of 1-5 years and wish to purchase a house here. Considering the diversity of
the existing population and influence created by the variety of multinational companies, people
of the city have been experiencing a culture transition over the years. While only a small
percentage of the respondents belonged to the joint family structure, around 79% were nuclear
type families with an average household size of 3-4 members. In terms of occupation roughly
90% of the respondents from Mumbai belong to the salaried private sector, while 3% each are
self-employed in business and professional sector. The respondents engaged with government
offices formed around 4% of the total. The survey being restricted to the middle income
households within the bracket ofRs.3-10 lakh annual income, the entire sample is distributed
within this income group. As such, the income category of Rs.3-6 lakh constitutes large portion
of these respondents.

Distribution of Sample Households According to Type of Occupation:


Salaried Private 90%

Self Employed prof 03%

Self Employed (Business) 03%

Salaried Govt. 04%


Salaried Private Self Employed prof
Self Employed (Business) salaried Govt.

In terms of occupation roughly 90% of the respondents from Mumbai belong to the salaried
private sector, while 3% each are self-employed in business and professional sector. The
respondents engaged with government offices formed around 4% of the total. The survey being
restricted to the middle income households within the bracket ofRs.3-10 lakh annual income, the
entire sample is distributed within this income group. As such, the income category of Rs.3-6 lc
constitutes large portion of these respondents. On an average, approximately 32% of the
interviewed respondents have been residing in their current residence for the past 2-3 years while
30% have been there for 1-2 years. It is observed that in the Rs.3-5 lakh income category around
63% reside in 1 BHK apartments with an average size of 560 sq.ft. , while in the Rs.8-10 lakh
income bracket, 71% reside in 3 BHK apartments with an average size of 1,000 sq.ft. It is also
witnessed that the average monthly rentals vary from Rs.6, 200- 8,600 per month for 1 BHK and
2 BHK apartments.

Percentage Distribution of Current Residence type based on Annul Income

Annual Income 1 BHK 2BHK 3BHK

3-5Lakh 63% 36% 1%

5-6Lakh 41% 59% 0%

6-8Lakh 52% 41% 3%

8-10Lakh 29% 71% 0%

Buyer Preferences:

It is observed that though price and size are important determinants when making a purchase
decision, other factors corresponding to the changing city dynamics and individual preference
based on evolving lifestyles also have an impact on the final choice. While most tenant
household currently reside in housing units of sizes varying from 560-1,000 sq.ft., it is observed
that the average minimum size preferred is not less than 751 sq.ft. When making a purchase
decision. It is also noticed that budget preference correspondingly changes with varying income
levels.The average budget of Rs.3-5 lakh is Rs.17 lakh, while that of an Rs.8-10 lakh household
is Rs.25 lakh. However, in the Rs.6-8 lakh income category, it is noticed that the average
preferred size reduces marginally while there is an increase in budget in comparison to the
previous income bracket. Individuals may compromise on size so as to accommodate other
luxuries within a property or move closer to city center locations.

Current Residence Type W.R.T Average Size and Rentals

Current Residence Type Avg. Size(sq.ft) Average Rental(Rs/Month)

1BHK 560 6276

2BHK 852 8595

3BHK 1000 10250

Average Preferred Budget and Size

Annual Income Average Budget Average Preferred

(Rs.Lakh) Size (sq.ft)

3-5Lakh 17 834

5-6Lakh 18 868

6-8Lakh 20 751

8-10Lakh 25 875

It is observed that connectivity to frequently travelled places and good infrastructure are the two
key factors that drive the demand for a project in terms of location. The potential for
development is the next important factor. On the other hand, presence of social circle and
favorable demographics hold the least weight age for the decision of potential buyers in Mumbai.
A majority of respondents were interested in purchasing affordable houses in Thane and Navi
Mumbai, primarily in Kharghar. Since, Navi Mumbai is a relatively newly developed location,
people in the city would be keen to purchase a house there due to its good connectivity to Pune
via the Mumbai-Pune expressway. Besides this, infrastructure developments along these
corridors are extremely good and with thenew airport that has been recently sanctioned, the
potential for further development has increased significantly. In the western suburbs, locations
like Vasai, Mira Road, Virar, Dahisar, Borivali, Kandivali and Naigoan were most preferred. Of
these, Kandivali, Borivali and Dahisar are considered to be within city limits, while Mira
Road,Naigaon, Vasai and Virar are in the outskirts of the western suburbs. Land costs in these
outskirt locations are relatively cheap, hence although road connectivity is not that developed,
these locations would still be preferred for those households that are unwilling to compromise on
the size given a lower budget. Locations like Kandivali, Borivali and Dahisar have
comparatively higher costs but their Proximity to the western suburban locations of Andheri and
Bandra would make them more preferred for those individuals that frequent these locations. In
the central suburbs Powai and Dombivali were the preferred locations. The present study has
captured the factors which influence the decision of a buyer in the selection of residential
projects in a preferred location. Respondents have rated a set of factors on a scale of 1 to 4(4
being the most important and 1 the least). Based on the ratings, mean scores are generated for
each factor and the one with the highest mean score has been identified as the most important
factor and ranked 1.Water supply, uninterrupted power supply and price are the top three factors
that influence the choice for a residential project in a given location. Apartment size and facilities
available are the next two important determinants, while safety & security, developer goodwill
and disturbance caused by noise/traffic and congestion were of the least importance. During my
course of the survey the respondents were asked to mention the amenities that they would like to
have in the residential projects that they would finally choose. The survey results reveal that
uninterrupted water supply is of prime importance, while high level security systems and power-
backup are the other two factors that received significant responses. It is observed that though
general safety and security does not rate very high regarding influencing the choice of a project,
high level security systems within that project are a preference. Finishing is the last factor that
received a considerable number of responses while the other amenities acquire much lower
preference levels. This would indicate that people in this city irrespective of income category are
interested mainly in the basic amenities when looking at purchasing an apartment. Uninterrupted
water supply is of prime importance, while high level security systems and power- backup are
the other 2 factors that receive significant responses.

Factors Influencing Choice of Residential Project

Factors Rank

Water Supply 1

Un-interrupted power Supply 2

Price 3

Apartment Home Size 4

Food Available 5

Safety and Security 6

Developer Goodwill 7

Disturbance Caused By Traffic/Noise/Congestion 8

Supply Perspective:
Mumbai, in the last few years, witnessed the development of a number of high-end residential
complexes. The suburbs and extended suburbs continued to absorb the demand emanating from
the land-strapped Island city, with residents opting to take advantage of lower costs and newer
large-scale residential developments hereof late, factors like global economic turmoil, rising
interest rates and spiraling construction costs proving to be deterrents to many aspiring
homebuyers, real estate developers are changing their strategies to keep their business afloat. As
a recent measure, they have been shifting their focus to developing affordable housing projects
or on attracting high-end customers, who mostly buy cash down or with limited amount of
borrowing. Shifting their focus to developing affordable housing projects or on attracting high-
end customers, who mostly buy cash down or with limited amount of borrowing? Knight Frank
research team carried out primary surveys across Major Knight Frank research team carried out
primary surveys across major stakeholders in the sector comprising developers, bankers and
government authorities to understand the supply dynamics. Following are some of major
opinions and apprehensions of the developers regarding affordable housing in Mumbai:
stakeholders in the sector comprising developers, bankers and government authorities to
understand the supply dynamics.

According to most developers, demand is constant irrespective of income as everyone would like
to own a house, and even those who own a house would wish to upgrade their residence with the
progression of time.

Most of developers are also of the view that an affordable housing project should pay focus on
two factors - size of the unit should depend on the budget. I.e. lower budget should equate with
smaller size, and price should be ideally 10-15% less than the prevalent rates in similar locality
within a radius of around 5 kms. While the cost of construction can be reduced by decreasing the
type of materials used, one should ensure that although this is done, the developers do not use
inferior quality goods as this would create problems within a shorter period.
Currently the only locations where affordable housing project can come up are in the distant
suburbs where the cost of land is relatively lower. Although these projects would sell as they are
within the budget of the middle income group, for a city like Mumbai it will not drastically
affect the mass. Though connectivity to locations like Vashi, Virar, Thane etc. does exist, the
time taken to reach these locations would vary anywhere between an hour to two from the CBD
locations of south Mumbai where most individuals work. The second factor is that this is
cumbersome for those individuals in the service industry with working erratic schedules, for
instance, those in hospitals, hotels, police and fire brigade services, etc.

Product Features:
Most developers are of the opinion that, in majority of the cases, individuals are not looking for
high-end features but ideally want to own a house with the basic amenities. In fact, most of the
times, people learn to live with some minor problems and take it as a part of everyday life. For
instance, in some of the peripheral locations like Vasai, power cuts are quite frequent. However,
people generally invest in power back-up to compensate for those hours in which the power cuts
take place. Also another problem in the outskirts is the lack of uninterrupted water supply. In
those cases, a number of societies get together to arrange tankers that provide water on a weekly
basis. The adequate size for an affordable housing unit should ideally be compact, so that the
cost of the apartment would reduce even if land costs and construction costs are high. The
following are some of the unit sizes preferred by the developers for affordable housing:
• 1 RK or 1 BHK = 450 sq.ft.

• 1 BHK = 600 sq.ft.

• 1.5 BHK = 700 sq.ft.

• 2 BHK = 800 sq.ft.

Availability of land:
Developers do not mind coming up with affordable projects within the city if they can avail of
subsidized land cost or a PPP model that encourages the development of such projects. The
present scenario is being viewed as being unfair by the developers. According to them, while the
government is creating an issue about the developers catering only to the premium segment and
how they are making large efforts to bridge the gap between actual demand and supply, they
effectively make it impossible for developers to construct these projects in locations within the
city limits. Further, when the government auctions land they put up only a small portion and
offer the same to at least 10 developers who drive up the price during the bidding process. So, if
they pay a premium price for the land, then they would need to correspondingly increase prices
of the product in order to make even a marginal profit, which in turn would work out
unaffordable to the masses.

Government Support:

Currently there are no tax incentives that are being offered to developers. There were some
incentives offered a few years back, but it was soon retracted as some developers tried to misuse
the same. Developers feel that some form of tax incentives are definitely required in order to
encourage the development of affordable housing in the city. In order to make the system more
effective, there should also be the provision for strict penalty for those misusing the tax policies.

Other Constraints:
The developers further note that in terms of infrastructure, by building these projects in the
outskirts, two situations arise. One, it further burdens the existing modes and means of transport
as a large percentage of the residents would need to travel out of the city, considering that the
MIG and LIG segment constitutes around 80% of the population of Mumbai.

About the Company:
For over three decades, Essel Group has been a leading business conglomerate having diverse
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Essel Finance:
Essel Finance is one of India's leading private sector financial services company. As an umbrella
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prominent business houses with a strong foothold in entertainment, media, packaging,
infrastructure, education, precious metals and technology sectors. The companies under the Essel
Group, for decades, have striven tirelessly to bring the latest innovations and deliver the best
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With an envious track record of creating value in all its businesses, the group with its 10,000 plus
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Almost all the businesses, except housing finance and private equity, were through acquisition.

They acquired NBFC license first, then grew that business for some time and then acquired intec
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We have a vision to be the best financial services company in the country and we realize that
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Product and Services of the Company:
Essel Finance offers a wide range of financial products:

Foreign Currency:

Forex service sells and buys all major foreign currencies to and from customers as per the
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Forex Card:

Forex Cards are available in all major currencies like US Dollar, Euro, British Pound, Australian
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for its Prepaid Travel Card solution.

Outward Remittance:

Outward Remittance service helps customers transfer money outside the country in a swift
manner. They may send money abroad to a beneficiary for various personal or business

Inward Remittance:

Inward Money Transfer is a fast, simple and convenient method to transfer money to India from
anywhere in the world. Essel is associated with Western Union MoneyGram for Inward Money
Transfer Service to India to its customers. Western Union and MoneyGram are global leaders in
worldwide money transfer services which makes it a safe way to send money to India.

Travel Insurance:

A Travel Insurance ensures the protection for emergency medical expenses and many other
unforeseen costs during a trip overseas. Essel Forex facilitates overseas Travel Insurance for
customers who are in need of short-term / extended period insurance specifically against travel-
related emergencies and exigencies.

Traveler Cheque:

Travelers Cheque facility lets passengers safely carry foreign exchange abroad. Essel Forex is
one of the Stockiest / Sellers of American Express Travelers Cheques in India. Travelers can

purchase and encase your Travelers cheques on return at any of our branches nearest to them.

Investment Banking:

Essel Investment Banking, through its insight, knowledge and expertise, offers a comprehensive
basket of corporate and financing advisory services including mergers and acquisitions, debt
financing advisory, equity capital markets advisory, private equity advisory and other specialized

Business Loans:
To fund a commercial property purchase or invest in plant and machinery, avail working capital

facilities or corporate backed supply chain solutions, or are looking to discount receivables or lease
rentals, Essel Business Loans helps catalyze each one of the business aspirations aligned to
particular needs.

The business loans are bifurcated based on the requirements as:

 Retail Micro and Small Enterprise
 Loan Equipment Financing
 Sector Based
 Financing Customer
 SME Financing
 Other services include wealth services, private equity and mutual fund.

Home Loans:
To create a space of own, Essel provides home loans. The home loans are tailored for
salaried/self-employed/non-resident with an attractive rate of interest and a longer tenure. Home
loans can be applied individually or jointly. All proposed owners of the property will have to be
co-applicants. However, all co-applicants need not be owners. Generally, co-applicants are close
family members. The maximum period of repayment of a loan shall be up to 20 years for the
repayment option. The tenure of the loan is also dependent on the customer’s profile, age of
customer at maturity loan, age of property at loan maturity, depending upon the specific
repayment scheme as may be opted and any other terms which may be applicable based on
prevalent norms of EFHLL. Loan Amount – 5lacs to 25lacs Maximum Finding – 100% of
construction estimate or 70% of market value (Subject to market value of the property and
repayment capacity of the customer, as assessed by EFHLL) Rate of Interest will be depending
on the risk profile of the customer and the product opted by the customer.

Products Offered by Essel Finance Home Loans Ltd.:
Home Loan Non Housing Loan

Home Loan – Purchase of Property Loan Against Property

Home Loan - Construction Purchase of Residential Land

Home Extension Loan Purchase of Commercial premises

Home Improvement Loan -

Composite Loan- Plot Purchase

These products would evolve over a period of time. Under Home Loans, funding would be done
for acquisition, construction and / or up gradation of residential properties. Land Loans would be
offered only on residential plots, which the customer buys now and uses later (as per his
convenience, requirement and availability of funds). Further in case of land loans, land parcels
plotted by a developer can be funded. It is essential that the land is demarcated. Non-
(New and

Loan Against
and Extension

Product at a

Home Commercial
Improvement Purchase

(Plot Purchase

Demarcated land will not be done. Commercial Loans would be for properties such as offices
and shops that the applicant may plan to acquire to run his or her business from. Loan against
Property would be offered in a limited manner. A declaration of the end use of LAP would be
collected from the customer. Top up loans would also be offered to existing customers and those
that get their loans balance transferred. Products offered by EFHL products will further evolve
over a period of time. EFHL will be funding the insurance premium for the insurance policies
clubbed with loans. All insurance premiums being funded by EFHL would be considered under
Non-Housing loan category as per NHB norms. The total funding, including the insurance
amount, would be within the overall LTV and FOIR norms (detailed in further sections) for each
assessment program.
PEST Analysis:
PEST analysis focuses on external influences. Its purpose here is to reduce negative impacts
related to the real estate industry. Considering the housing market has been a series of ups and
downs mostly downs over the last decade, PEST analysis is recommended for both buyers and
These influences are related to politics, politicians, and the government. In real estate, laws,
taxes, and inflation rates can affect the prices of houses.

Unemployment rates, economic growth, and interest rates can affect real estate. The housing
market crash in the mid-2000s drastically hurt real estate. The rise of unemployment rates hasn’t
helped. But the market is still attempting to return to its former glory but has yet to achieve that

Cultural and demographic changes affect who, when, and how people can buy properties.
Circumstances such as population growth, demographics, and environmental factors affect prices
for buying property.
The type of technology affects how people book and buy properties online. Also included are
the kind of material and the method of building homes in undeveloped areas.