Professional Documents
Culture Documents
ON
“A STUDY ON HOME LOANS”
OF
hereby declare that the project work entitled “A STUDY ON HOME LOANS with special
reference to Dewan Housing Finance Corporation Ltd (DHFL)” is the record of authentic work
carried out by me for 6 weeks and has not been submitted to any other University or Institute for
the award of any degree / diploma etc. Whatever information furnished in this project report is true
to best of my knowledge.
SHUBHAM DHIMAN
MBA 2017-19
1704870070
Preface
not give perfection to any discipline. The gap between theory and practice is bridged by the
summer internship, which has been an integral part of the syllabus. This present project report is
an image of what I have done and observed during my summer internship in Dewan Housing
Finance Corporation Ltd (DHFL). This report is the result of the work done during the summer
internship 03 jULY - 03 SEPT.I have tried my level best to be as a systematic as possible and to
Summer training at Dewan Housing Finance Corporation Ltd (DHFL), is an opportunity for
exposure with the various function of housing finance as well as interaction with the people
engaged in this specialized field of knowledge. Hence, it is great pleasure for me to be a summer
trainee in Home loan Department of Dewan Housing Finance Corporation Ltd (DHFL). Hard
work, dedication, knowledge & positive attitude all are necessary to do any task
successfully but one thing with this is very important is the cooperation and guidance of expert
and experienced person. Firstly I would like to Ms. Vijaiendra Tiwari (Unit Head) for giving me
an opportunity to work in such a reputed company. I would like to give my sincere thanks to
Ms.ANKUR SAXENA (Head of Home loan department) who always help to understand the
whole HOME LOAN PROCESS followed Dewan Housing Finance Corporation Ltd (DHFL).I
would like to express my sincere gratitude and regards to Mrs. Astha Shukla (Faculty guide)
for his valuable suggestions from time to time without her support and guidance this Project
With Regards,
Shubham Dhiman
MBA 2017-19
1704870070
TABLE OF CONTENTS
Almost four decades ago, home loans were not even an option for homebuyers. In fact,
homebuyers were cautious to test this ground due to the social structure they belonged to, other
finance modes they depended on and the age at which they decided to buy homes. Today, in times
when the younger generation is making a choice of buying a home, thanks to the better-paying
jobs, equated monthly installments do not scare them anymore. The repayment capacity of those
in their late 20s and into their 30s is, on the whole, better than that of the previous generation.
Three renowned banks are often credited with what has today emerged as a robust borrowing-
lending market. When it started offering home loans four decades ago, HDFC Bank had almost no
competitor as housing was seen as an unproductive sector and did not receive the focus as it does
today. Soon after, it was the ICICI Bank in 1999 that revolutionized the entire system by
introducing floating home loan rates. This was an instant hit among prospective homebuyers. The
State Bank of India (SBI) took a long time to gain ground in terms of home loan, but, when it did,
it became popular in no time. The bank introduced fixed rate of eight per cent in the first year, nine
per cent in the next two years and market rates for the rest of the term. The bank termed this as a
teaser rate.
Many other banks which did not have the capacity to lend at attractive rates began rolling out other
offers such as home improvement rates which meant there was a higher loan-to-value. But,
the Reserve Bank of India (RBI) soon capped such limits at 80 per cent and banks were not allowed
Today, borrowing over 80 per cent of the value of a property is quite common, and more and more
homebuyers prefer home loans. It also gives the homebuyers an assurance about the property they
are planning to invest in as banks perform due diligence of the property before lending. However,
it was not the same earlier. The home loan segment has come a long way since its inception decades
ago.
The procedure begins when you send a formal home loan application to the bank. Bank will ask
for your personal details in order to scrutinize your financial standing and loan eligibility. For this,
you will have to submit a set of documents including identity proof, age proof, address proof,
2- Processing Fee:-
The bank will charge you with loan-processing fee which is the charge for commencing and
maintaining the process of home loan and it is non-refundable. Usually, the charge is between
0.25% and 0.50%. Some banks have waived off the processing fee; you can negotiate the same.
evaluate your credit history and decide the amount of loan for you. For this, you will be asked to
show up for a personal discussion with the bank’s representative who will ask for a number of
details. The information provided by you will be verified by the bank for which they might visit
Evaluation of repayment capacity is the most crucial part of this process. Based on their
verification and judgement, the bank will either approve your home loan or reject it. You can also
get a conditional approval which means that you will have to fulfill a set of conditions before the
4- Offer Letter:-
After being satisfied with all the information and repayment capacity, bank will send you an offer
letter which will include information related to tentative principal amount, rate of interest, type of
interest rate (fixed or floating), tenure, repayment mode and other terms and conditions. If you
accept the offer, you have to sign the acceptance letter, a copy of which will be kept with the bank
for records. The bank may levy some administrative fees at this stage.
5- Property Verification:-
The reason why home loan is known as ‘mortgage loan’ is because your property stands as
collateral for it and in case you are unable to make the payment, bank has the right to liquidate the
property to get their loan amount. Hence, it is important for the bank to verify the property. There
will be a legal check to ensure that it is clear of all land disputes and its title is clear. If it is an
under-construction property, the location, title, quality and completion timeline will be assessed
by the bank’s property valuators. They also assess the property’s value on certain parameters which
After the entire verification and above-mentioned formalities have been fulfilled to the best
satisfaction of the bank, registration process initiates. You are required to prepare all legal
documents in the correct format which is approved by the bank’s lawyer on stamp papers. Post-
dated cheques for the agreed tenure are also required and you will have to sign the home loan
agreement.
After you sign the agreement, the disbursal process will begin as agreed upon, that is, a lump-sum
amount or in stages.
Provider
loans
Bank
Housing Rs 10,000
Finance
Housing
Finance
Capital
National
Bank
Bank of 8.70% onwards Min. 1000 and Max. Rs. 20,000 NIL
India
Bank
Bank
Bank of
India
Rs. 5,000)
A lock-in, also called a rate-lock or rate commitment, is a lender’s promise to hold a certain interest
rate and a certain number of points for you, usually for a specified period of time, while your loan
application is processed. (Points are additional charges imposed by the lender that are usually
prepaid by the consumer at settlement but can sometimes be financed by adding them to the
mortgage amount. One point equals one percent of the loan amount.) Depending upon the lender,
you may be able to lock in the interest rate and number of points that you will be charged when
you file your application, during processing of the loan, when the loan is approved, or later. A
lock-in that is given when you apply for a loan may be useful because it’s likely to take your lender
several weeks or longer to prepare, document, and evaluate your loan application. During that
time, the cost of mortgages may change. But if your interest rate and points are locked in, you
should be protected against increases while your application is processed. This protection could
affect whether you can afford the mortgage. However, a locked-in rate could also prevent you from
taking advantage of price decreases, unless your lender is willing to lock in a lower rate that
becomes available during this period. It is important to recognize that a lock-in is not the same as
a loan commitment, although some loan commitments may contain a lock-in. A loan commitment
is the lender’s promise to make you a loan in a specific amount at some future time. Generally,
you will receive the lender’s commitment only after your loan application has been
approved. This commitment usually will state the loan terms that have been approved (including
loan amount), how long the commitment is valid, and the lender’s conditions for making the loans
Some lenders have preprinted forms that set out the exact terms of the lock-in agreement. Others
may only make an oral lock-in promise on the telephone or at the time of application. Oral
agreements can be very difficult to prove in the event of a dispute. It is wise to obtain written,
rather than verbal, lock-in agreements to make sure that you fully understand how your lender’s
lock-ins and loan commitments work and to have a tangible record of your arrangements with the
Charges of a lock-in:-
Lenders may charge you a fee for locking in the rate of interest and number of points for your
mortgage. Some lenders may charge you a fee up-front, and may not refund it if you withdraw
your application, if your credit is denied, or if you do not close the loan. Others might charge the
fee at settlement. The fee might be a flat fee, a percentage of the mortgage amount, or a fraction
of a percentage point added to the rate you lock in. The amount of the fee and how it is charged
will vary among lenders and may depend on the length of the lock-in period.
Types of lock-in:-
Under this option, the lender lets you lock in both the interest rate and points quoted to you. This
option may be considered to be a true lock-in because your mortgage terms should not increase
above the interest rate and points that you’ve agreed upon even if market conditions change.
Under this option, the lender lets you lock in the interest rate, while permitting or requiring the
points to rise and fall (float) with changes in market conditions. If market interest rates drop during
the lock-in period, the points may also fall. If they rise, the points may increase. Even if you float
your points, your lender may allow you to lock-in the points at some time before settlement at
whatever level is then current. (For instance, say you’ve locked in some percent interest rate, but
not the 3 points that went with that rate. A month later, the market interest rate remains the same,
but the points the lender charges for that rate have dropped.) If you float your points and market
interest rates increase by the time of settlement, the lender may charge a greater number of points
for a loan at the rate you’ve locked in. In this case, the benefit you might have had by locking in
your rate may be lost because you’ll have to pay more in up-front costs. Indian Economy is
growing at a nice pace which is also driving per capita income rise. The demand of real estate has
"Growing affordability for the first-time home buyers, supported by government incentives like
the PM's Awas Yojana are expected to result in a rise in primary home purchases, especially in the
affordable housing segment, which will help segmental loan growth to 17-19 per cent," the Icra
report said.Housing credit grew 16 per cent in FY18, taking the mortgage penetration (housing
credit as a percentage of GDP) to double-digit mark of 10 per cent for the first time in FY18, up
Overall housing credit grew 39 per cent in the year to March 2018, which was pushed by new
"We expect mortgage penetration level to go up by 300 -500 bps over the next five years," the
report said. Overall asset quality indicators for all housing finance firms remained stable with gross
NPAs of 1.1 per cent for FY18, better than the 1.2 per cent in December 2017 but worse than the
Icra expects overall gross NPAs for housing finance companies (HFCs) to remain range-bound
"The retail home loan asset quality of HFCs is likely to be benefited by the recent Cabinet decision
However, gross NPAs in the sub-segment deteriorated from 3.3 per cent in FY17 to 4.1 per cent
in FY18, driven by greater portfolio seasoning, entity-specific factors in some cases and
external events such as note-ban and GST rollout, which have impacted cash flows of borrowers.
On the funding side, the report said HFCs would need to tie-up for Rs 4 trillion of incremental
funds to meet the growth plans as well as replacing the maturing liabilities in FY19.
You can come to a housing finance company/ bank and avail a land loan to buy a piece of a plot
This type of home loan is ideal if you want to construct a home according to your needs. Several
existing home as your family grows or simply to enlarge your home. For this purpose you can
avail of a home extension loan from a housing finance company/ banks of your choice.
A home improvement loan (also sometimes known as home renovation loan) can be used for
various purposes such as painting the exterior or interior of the house, plumbing, upgrading
electrical system, installing new tiles, waterproofing, etc. A home improvement loan is ideal if you
would like to renovate your houses but currently lack the necessary funds to do so.
Sometimes the current home loan interest rates can be taxing for you. It is also possible that you
may not be happy with the services offered by the current housing finance company/banks. In such
cases, you have an option to transfer the home loan to another lender who offers lower home loan
interest rates and better services. Some housing finance companies/ banks in India even offer an
option of a top- up loan besides the home loan amount which helps you get additional funds to
COMPOSITE LOAN:-
A variant of Housing loan also includes an option of a combined loan for buying a plot as well as
a loan for constructing your dream home. Besides the above-stated types of loans, people can also
avail of other variants of home loans like a NRI home loan (only for NRI borrower), home
conversion loans, etc. Contact reputed housing finance company/banks in India today to make
KEY HIGHLIGHT:-
Prepayment Nil
Charges
ELIGIBILITY:-
repayment capacity.
RATE OF INTEREST:-
Loan Entity Applicable ROI DHFL (Salaried / SENP/ SEP)
Amount
Lacs
Lacs up
to 75
Lacs
Lacs to
Rs. 100
Lacs
Rs. 100
Lacs to
Rs. 150
Lacs
Rs. 150
Lacs to
Rs. 300
Lacs
Rs. 300
Lacs
REQUIRED DOCUMENT:-
FOR SALARIED:-
Sr.
Document Name
No.
1. KYC Documents
Salary slip for the last 2 months / Salary Certificate (If variable components like Over
2.
Time and Incentives are reflected then salary slips for the past 6 months are required)
Sr.
Document Name
No.
Copy of all bank pass books / bank statements for the past 3 months including front
4.
page
FOR SELF-EMPLOYEED:-
Sr.No. DOCUMENTATION
1. KYC Documents
KYC Copy of last 2 years Income Tax Returns of the applicant along with computation of
2.
income duly attested by a Chartered Accountant
Copy of last 2 Years Balance Sheet and Profit & Loss Account of the firm duly attested by a
3.
Chartered Accountant
4. Brief Business Profile on the Letter Head of the firm by the applicant
Bank Statement for the last 6 months for the Savings Account & Current Account, O/D
5.
Account
Copy of either Shop & Establishment License / VAT Registration or any other mandatory
6.
license / registration or old ITRs evidencing business
10. Copy of Advance Tax paid / Self Assessment Tax paid challan
The Credit Appraisal is an important step in sanctioning loan applications .Hence the Credit
Appraiser needs to have certain important documents to compute the credit worthiness of the
applicant .In the case of salaried person these include the following:-
The salary slip is usually a printed sheet of paper that contains 2 components-
Income/Earnings column: - It contains an exhaustive list of the various components that are
added to the person’s salary. They contain various components like Basic pay, HRA etc.
Deductions:- It contains an exhaustive list of various components that are deducted from the
persons Earnings. They contain various components like Income tax, Provident fund, Employee
Loans etc.
The bank statement contains the various transactions that the applicant performs in his bank
Date
Description:- It contains the brief and standardized description of the activity or the
account related to the transaction .Eg. Clearing cheque 166129, Transfer deposit.
studied to find out about any regular withdrawals or a series of checks so that any existing
loans may be revealed and there can be a correct estimate of the repayment capacity.
Special feature :- HDFC will not consider any loan s without standing EMI of or below
6 months.
It is form given by Employer which states the income earned from that company during the full
The SARAL tax return form reveals the structure of incomes and/or the various earnings of the
tax returnee .It also shows the various deductions that will not be included and it also contains the
The residence proof includes the Electricity bill, Telephone bill, Ration Card ,Passport.
(6) PHOTO ID PROOF: - The photo proof includes the Pancard ,Voter ID card, Employee ID
(7)AGE PROOF: -
The age proof includes the Pan card, Passport, Photo ID.
It can also be downloaded from HDFCs user friendly web based portal.
This is a standard and nominal fees to be paid at the time of applying for loan.
STAGES OF HOME LOAN:-
At DHFL, our focus is to simplify, abridge and shorten the process of acquiring your “Dream
Home”. Once you have identified your “Dream home”, we work towards ensuring that you also
Our home loan application form, which you can download right here, is both simple and
comprehensive. Simply fill it, collate the essential documents required to process your home loan
and submit it to us along with a cheque favouring “Dewan Housing Finance Corporation Ltd” for
the initial processing fees. If you any questions at this stage or need help with this, our home loan
Your dream home is not too far away now, as we at DHFL work on getting your loan application
Here is a quick guide to the process we follow, and the steps involved before you become the
At this stage, we want to determine that you can afford the loan repayments. Our credit team will
conduct income verification and validate the accuracy of the information you have provided.
Further basis your income, our credit team will arrive at an eligibility loan amount that you can
Personal details such as: Name, Residential Addresses, Date of Birth and PAN card number
Overdue Accounts (Defaults) which may have been listed against your name, including an
As your credit history plays an important part in the home loan application process, it is always
advisable to clarify and resolve any credit related issues before lodging your loan application.
Considering there are no major issues with your income verification and credit checks, we at DHFL
will provide conditional sanction for your loan. This means that we will issue a formal Letter of
Offer cum acceptance favouring all the applicants to the loan. We recommend all applicants read
this document carefully, sign and return it to us, making sure the information is correct and that
Your DHFL Home loan executive will be there to guide you through this step and assist you in
property you intend to purchase and any property that will be used as security.
Legal Assessment: A qualified lawyer will examine the property documents i.e. chain of
agreements/title etc to determine if the property documents provided by you are conducive
for lending.
Once you have formally accepted our loan offer, a thorough scrutiny of all of the above steps is
conducted by our Operations Team to ensure accuracy of the entire process. Once the final check
completed, you need to submit the final processing fees cheque favouring “Dewan Housing
Finance Corporation Ltd” to your DHFL executive. After clearance of the final processing fees
cheque, the disbursement cheque for the approved amount is prepared by the Operations Manager
Upon receiving the funds you will start paying your first home loan repayment, usually one month
And with these four simple steps, you and your family become a proud owner of your “Dream
Home”- and take us that one step closer to fulfilling our mission – of providing everyone in India
DHFL was established and incorporated by Rajesh Kumar Wadhawan on 11 April 1984. The name
of the company was changed to Dewan Housing Development Finance Ltd. and later to Dewan
In 2010, DHFL acquired Deutsche Postbank Home Finance unit for ₹1079 crores. On 18
December 2013, DHFL acquired 74% stake DHFL Pramerica Life Insurance Company Ltd.
company, headquartered in Mumbai with branches in major cities across India. DHFL was
established to enable access to affordable housing finance to the lower and middle income groups
in semi-urban and rural parts of India. DHFL is the second housing finance company to be
established in the country. The company also leases commercial and residential premises. DHFL
DHFL's long-term bank loan programme is rated [ICRA]A(SO) and short-term is rated
[ICRA]A1+ by ICRA Limited. As of June 2018, DHFL has 209 branches and 113 service centres.
NSE: DHFL
ISIN INE202B01012
Non-Housing Loans
Deposits
income
employees
Website www.dhfl.com
Director
Home Loans
Plot Loans
SME Loans
Business Loan
Deposits
Recurring Deposit
Corporate Deposits
AWARDS:-
FM Stars of the Industry award for Excellence in Home Loan Banking 2015
Best Performing Primary Lending Institution under CLSS for MIG by MoHUA
Best Performing Primary Lender under CLSS for MIG by My Liveable City and NHB
One of India’s ‘Dream Companies to work for’ in the housing finance sector, World HRD
Congress.
GROUP COMPANIES:-
MISSION OF COMPANY:-
To provide easy access to all the Indian for the ownership of a home
the loans
SHAREHOLDING OF DHFL:-
Promoters 35.22
Individuals 4.81
Institutions 7.74
FII 36.74
Govt. 0.00
Others 15.49
Shares (%)
Promoter
Non Promoter
Institutions
Shares (%)
FII 0 0.00
Non-Institution
Scheme Holding(%)
Home is where the heart is- Get your dream home from any of 570 locations in India
At DHFL, we understand that your dream home is always envisioned in a dream location. Whether
in any of the metros, closer to nature or even your hometown, you now have the freedom to choose
from 570 DHFL Home Loan locations in India. Our top locations for home loan in India include
Choose from different Home Loan locations to avail a DHFL Home Loan to fulfill your dream of
North: Delhi, Gurugram, Chandigarh, Lucknow, Jaipur, Ghaziabad, Faridabad, Noida, Ludhiana,
hakhapatnam (Vizag).
West: Mumbai, Pune, Navi Mumbai, Ahmedabad, Indore, Nashik, Surat, Thane, Bhopal,
Vadodara, Nagpur, Pimpri Chinchwad, Rajkot, Kolhapur, Vasai, Mira Road, Bhayander, Kalyan,
Aurangabad.
SUBSIDIARIES OF DHFL:-
companies in India headquartered in Gurgaon, India. We provide a wide range of life insurance
solutions for individuals as well as groups taking care of our customers’ various financial
protection needs such as securing their child’s future, retirement planning, savings and wealth
creation.
At a Glance-
126 branches
3906 employees
Customers
Sum assured
Individual:-9,230 Crs.
Group:-168,176.08 Crs.
DHFL Vysya Housing Finance and Aadhar Housing Finance are subsidiaries of WGC
(Wadhawan Global Capital). Both, Aadhar and DHFL Vysya provide housing loans to LIG (Low
Income Groups) but in mutually exclusive locations. While Aadhar is a well-established financial
services brand in North, West and East India, DHFL Vysya has a strong foothold in South India.
The merger will result in the creation of a stronger brand with a pan-India presence. The new entity
would be able to create better products and services for their customers. This will result in
economies of scale, uniform acquisition structure, common policies, strong business growth and
cost reduction.
Aadhar housing finance ltd (Aadhar), formerly known as DHFL Vysya Housing Finance Ltd, is
one of the largest affordable housing finance companies in India servicing the home financing
needs of the low income sections of the society. Aadhar endeavours to empower underserved
Formed With the merger of DHFL Vysya and Aadhar Housing Finance, Aadhar is one of the few
players in the industry with a pan-India presence. Today, we provide financing solutions to all
segments of customers whose monthly income is between INR 5000 (USD 76) to INR 50000
Aadhar is a subsidiary of Wadhawan Global Capital(WGC) with equity participation from DHFL
We pride ourselves on the empathy, trust and transparency-led customer service we provide and
see it as our key competitive advantage. Our customer-centric approach has helped us build a loan
book of about a billion rupees. Today, our branches across 20 states help us reach more than 90%
of the country's population and provide credit solutions that make homeownership accessible to
everyone.
With two-thirds of India's 1.2 billion population residing in the hinterland, we are committed to
serve home buyers from the low income group. After all, everyone deserves the security of a home
– from barbers, tailors, carpenters, plumbers, kirana merchants to police, defence and railway
personnel, SMBs and the self-employed. By empowering this segment with the security of a home,
At Aadhar, we facilitate financial inclusion by enabling wider access to housing finance, ethically
and responsibly. Our financing process is simple, transparent and speedy. Committed to the highest
standards of ethical behaviour and professionalism, we are empowering Bharat to gain enhanced
financial capabilities.
Avanse is an extract of the French word for advance. And that’s what Avanse, a new age education
finance company and an associate company of Dewan Housing Finance Corporation Limited
(DHFL), is. We are a sensitive, advanced private finance company specializing in the niche space
of education.
Our mother company, DHFL, the second largest private housing finance company in India, started
off with a dream in 1984 - a home for every Indian. Our founder, the late Shri Rajesh Kumar
Wadhawan built a housing finance brand that revolutionized the real estate sector, brick by brick.
Today, it is one of India’s largest housing finance companies in the private sector, having helped
hundreds of thousands of Indians to fulfill their dreams of owning a home. Avanse is from that
pedigree.
Avanse provides financial assistance through Avanse standalone offices and also through the
DHFL network offices. The Company funds students travelling to all key international advanced
The endeavour always has been to bring the best in financing flexibilities to the Indian student
market. We started of small and our intention is not to compete in the existing market but create
new curves of evolution. Our brand complements the education sector and engages with students
and educators to metamorphose financial solutions that are new age and tailored for specific needs.
Today we have relationships and access across more than 400 educators and allied services and
organization giving us broader as well as a deeper knowledge pool. We are over a 500 strong
We take pride in the fact that the International Finance Corporation (IFC), an arm of the World
Bank holds 20% equity stake in Avansanking Finance Company (NBFC), regulated by the Reserve
Bank of India and envisioned with the aim to fulfil the need for education finance at reasonable
terms. Every Indian youth has a right to the best in education. And lack of funds must be the last
It is insurance company by Wadhawan global capital group that provided us to health, motor,
Dhfl Advisory & Investments Private Limited is a Private incorporated on 12 February 2016. It is
authorized share capital is Rs.900,000,000 and its paid up capital is Rs.750,099,970.It is involved
Group includes activities involved in or closely related to financial inter-mediation other than
insurance and pension funding but not themselves involving financial inter-mediation].
Dhfl Advisory & Investments Private Limited's Annual General Meeting (AGM) was last held on
29 September 2017 and as per records from Ministry of Corporate Affairs (MCA), its balance
Directors of Dhfl Advisory & Investments Private Limited are Mannil Venugopalan, Dheeraj
Dhfl Advisory & Investments Private Limited's Corporate Identification Number is (CIN)
bhargavi.jamkhandi@dhfl.com and its registered address is DHFL House, 3rd - 7th Floor, 19 Sahar
Road Off Western Express Highway, Vile Parle (East) Mumbai Bandra Suburban MH 400099 IN.
Dhfl Investments Limited incorporated with MCA on 13 February 2017. The Dhfl Investments
Limited is listed in the class of public ltd company and classified as Non Govt Company. This
Dhfl Investments Limited's last Annual General Meeting (AGM) was held on NA, and date of
latest balance sheet available from Ministry of Corporate Affairs (MCA) is NA.
The company has 4 directors/key management personal. Dhfl Investments Limited company
registration number is 291108 and its Corporate Identification Number (CIN) provided from MCA
is U74999MH2017PLC291108.
Dhfl Investments Limited company's registered office address is Dhfl House, 3rd 7th Floor, 19
Sahar Road Off Western Express Highway, Vile Parle (East), Mumbai Bandra Suburban
Mh 400099 In. Find other contact information for Dhfl Investments Limited such as Email,
Website and more below.The company has reportedly 0 charges associated and 82 documents
Attractive interest rates with floating and fixed type based on your preference
Less paperwork
No prepayment penalties
Objective: DHFL home loan aims to help millions of people achieve their dream of owning a
house.
Loan Amount: The loan amount is also determined by the repaying capacity and credit profile.
Prepayment: No charges are levied on partial prepayment or foreclosure of the home loan.
Insurance Policy: An insurance cover to protect your family against repayment of home loan in
DEPARTMENT
CHAPTER-3
INTRODUCTION OF DEPARTMENT
Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all
Home is one of the things that everyone one wants to own. Home is a shelter to person where he
rests and feel comfortable. Many banks providing home loans whether commercial banks or
DHFL-(Housing Development And Finance Corporation) Home Loan, India have been serving
the people for around three decades and providing various housing loan according to their varied
needs at attractive & reasonable interest rates. Owing to their wide network of financing, DHFL
Housing Loans provides services at your doorstep and helps you find a home as per your
requirements.
Many banks are providing home loans at cheapest rate to attract consumers towards them. The
more customer friendly attitude of these banks, currently offer to consumers cheapest loan over
homes.
In view of acute housing shortage in the country, and keeping in mind the social – economic role
of commercial banks in the present times, the RBI advised banks to encourage the flow of credit
With the RBI reducing bank rate, the home loan market rates nose-diving by 50 basis points. The
DHFL has become the first player in this sector to announce a housing loan for a 20 years period.
No doubt it will enhance the end cost people to plan their house over longer duration now; it has
been made easy for a person to buy that dream house which he dreamt of long ago. DHFL also
provides with Home Improvement Loan for internal and external repairs and other structural
improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills
and aluminium windows. DHFL finances up to 85% of the cost of renovation (100% for existing
customers). Current status is that DHFL reduced home loan rates by 50 basis points for all its
The various banks offer attractive interest rates to boost and help their customers. Many banks
provide loans on fixed or floating rates to facilitate consumers as per their needs.
The home availed by a person with the help of banks, because they provide technical and financial
The commercial banks now a day, liberlise their laws regarding home loans. Some of banks don’t
even require the guarantor to grant loan to their consumers. They also make consumers free by
(iv)Door-Step Services:-
These door to step services are provided from enquiry stage to the final disbursement takes place
such services are beneficial for customers in present busy life. Banks like ICICI bank and standard
based on the loan amount and the creatibility of customers. This relieves the customers to repay
Some banks provide free accidental death insurance with housing loan which is also beneficial for
the customers. These benefits or advantages of home loans are responsible for making than so
popular among customer that a person who don‟t have their home and want to buy, they do it with
home loan. Home loans help such persons in making their dream home.
Delays in processing:-
Many times, there are huge delays in processing of providing home loans because various
formulations to be fulfilled in this process. Due to these delays customers feel mentally as well as
financially weak.
Some banks give home loans at floating rates, which fluctuate at Different intervals due to some
reasons. These changes sometimes, may lead to increase in interest rate which will increase the
High Cost:-
The public sector banks charge high processing cost for home loans sanctioning. They are forced
to pay serious charges at various stages to fulfill the requirements. Some consumers are not able
to pay such charges so such people could not avail the benefits of home loan schemes.
Problems in disbursement:-
There are many problems in disbursement of home loan amount. There are some delay in
disbursement of loan amount to the customers due to legal formalities. This causes problems to
the customers. These are limitations or disadvantages of home loans. But sometimes some banks
charges high installments to repay loan amount. Such also causes problem to customers. These
limitations can be removed by providing good and promote services to the customers.
The every bank has its own procedure to disburse the loan amount among customers. After
choosing your right home, the next step is disbursement of home loans. The loan amount is
disbursed after identifying and selecting the property or home that are purchased and submit the
requisite legal documents. In the disbursement of home loans a clear title and full verification to
ensure that a person has full rights on his house. The 230A clearance of seller and /or 371
However, if one is a resident or non-resident individual who is planning to buy a house in India,
one can apply for a home loan. If a person has decided to buy a property in the near future, he/she
can apply for a loan before even selecting the property. Once the maximum amount to put into the
property has been decided, the Housing Finance Institutions or Banks will let the customer know
that how much he/she is eligible for and this helps to plan out the budget.
to the property need to be co-applicants to the loan necessarily. These institutions do not permit
minors to join in as either co -owner or as co-applicants because a minor is not eligible to enter
into a contact as per law. They do not permit even friends or relatives who are not blood relatives
to take a property jointly.However, Income of co applicants can be clubbed together to get higher
loan eligibility. Given below is a Table that throw light on acceptable relationship of a co-applicant
Parent - son: - It can be clubbed if only son is there but not if any male sibling exists.
Brother-Brother: - If they are currently staying together and intend to stay together in the
new property, then only, their income-can be clubbed for above purposes.
The following are the terms and conditions applicable to the basic home loan product only. These
are likely to change on the basis of the variations of the home loan product. Typically, in general
(1) The loan to value ratio (LTV) cannot exceed a particular percentage. This differs from product
to product and from one Housing Finance Institutional Bank (HFI/B) to another. The components
of the value of the Property calculated here are covered under cost of property.
(2) The maximum tenure of the bank is nominally fixed by HFI/Bs. However, HFls/Bs do provide
(3) The installment that one pay is normally restricted to about-50-per cent of the monthly gross
(4) The total monthly outflow towards all the loans that have been availed of, including the current
(5) One will be eligible for a loan amount which is the lowest as per one's eligibility. This is
calculated as per the LTV norms, the HR, norms and the FOIR norms as mentioned above.
(6) Most HFls/Bs consider the profile before they judge the repayment capacity. The judgement is
work experience, previous track record of repayment of any loans that have been availed of,
occupation, the industry to which the candidate's business relates to, if he/she is self-employed,
(7) Some HFIs/Bs insists on guarantees from other individuals for the repayment of the loan. In
such cases, the customers has to arrange for the personal guarantee before the disbursement of the
(8) The property should be technically clear before the HFIs/Bs disburses the loans amount. Most
of institutions and banks have a teams of technical experts who visit the site to get a technical
report before the disbursement of loan. This is also beneficial to the customer as they check for the
(9) The property should be legally clear before one can avail of a disbursement of the loan amount.
Housing-Finance Institutions /Banks (HFIs/Bs) take legal clearance from their lawyers before the
property.
(10) The disbursement of the loan is as per the progress of construction of the property unless it is
a ready property in which case the disbursement will be by one single cheque. PEMI or simple
interest on the loan amount disbursed to the customer in case of a part disbursement will be payable
(11) The disbursement in most cases will be favoring the builder or the seller or the society or the
development authority as the case may be. The disbursement will come in the customer's favour
(12) The repayment of loan can be made either through deduction against salary, post-dated
(13) The principle is amortized either on annual reducing or monthly reducing basis as the case
may be.
The above terms and conditions are generally true for most Housing finance Institutions/Banks
with respect to the general Home Loans. However, the specific terms and conditions vary with
The different kinds of charges applicable to home loans are discussed below:-
First of all, comes the process fee. This is a charge that is levied by most HFls/Bs. This has to be
paid at the time of submission of the application form. It's normally charged as a percentage of the
loan amount sanctioned. Some HFls also charge a flat fee based on the loan amount instead of a
percentage. When a lower amount is sanctioned the excess fees paid at the time of submission of
the application is adjusted with the charges, which one make to the HFI/B subsequently. Most
This charge is again, normally, a percentage of the loan amount sanctioned. It is collected by the
HFI/B for the maintenance of customer's records, issuing interest certificates, legal charges,
technical charges, etc. though the tenure of the loan. It is payable by the customer when he/she
accepts the offer letter given by the HFI/B. This payment has to be made before the availment of
the disbursement. The mode of collection of these fees varies from one HFI/B to another.
This is the rate of interest applicable on the loan amount through the tenure of the loan. It is charged
on the principal monthly reducing method. Most HFIs/Bs give an option to select either a fixed
Some HFIs/Bs mainly Public Sector Banks levy legal charges that they incur on getting the
These charges are also levied by certain Housing Finance Institutions/Banks (HFIs/Bs) to meet
their expenses on the technical site visits to the customer's property. This ensures quality of
construction and construction within the norms as stipulated by the respective approval authority.
HFIs that go in for a registered mortgage pass these charges on to the customer. These are rather
heavy in certain states depending on the laws laid down by the state where one buy a property.
recovered from the customer. They are charged to him by HFIs who demand for Guarantees.
In case the cheques through which one make a payment to HFls get dishonored, some minimum
charges are levied by the HFI. The same are recovered from the customer.
HFls/Bs charge delayed payment charges from the customer if he/she delays the payment of
These are levied as a percentage on the delayed payment charges by most HFls. They are levied if
one fail to pay the dues within the stipulated time after a delay has taken place.
This is payable in case the HFI/B sends a representative from their organization to collect their
outstanding dues. It is normally charged at a flat rate per visit. These charges are levied by most
HFls/Bs.
This is a penalty charged by HFls/Bs from when one makes either a part prepayment or a full
repayment of the loan. This charge is levied only on lump sum payments and not on the EMls that
one pays. This charge is levied on the amount prepaid by one and not on the entire outstanding
principal. These charges are gradually being discount. So, these are the charges levied by most
Housing Finance Institutions and Banks while granting home loan to the customers. Now, the
is first necessary to classify customers into salaried and self- employed individuals.
(a) The income of the salaried individual is considered in the following manner:-
Less:- Any non- regular variable income appearing on the salary slip (including overtime, etc.)
Add: - 50 per cent of the average variable income of the last six months.
Add: - Any fixed cash/voucher payments for which proof can be submitted.
Add: - 50 per cent of the average variable cash/voucher payments with proof like traveling
reimbursement etc.
Add:- HRA receivable if not being received already in the salary slip.
The above income calculated for the calculation of eligibility using IIR and FOIR norms. For
calculation of FOIR, the installments of all the loans that one has availed of currently
for which repayment is being made is taken into account as well. The lower of the two eligibilities
and non-professionals.
calculation of eligibility of professional's income is computed by most HFIs using the gross
professional receipts instead of the Net profit as in the case of self-employed non-
professionals.
the following
Average of the net profits of last 2 years as it appears in the profit and loss account (Returns
need to be filed for the same. They should be filed regularly before the due date is over).
Less: - Any income, which is unusual and non-recurring in nature like sale of some asset, etc
Add: - Any expense that is unusual and non-recurring in nature like repairs and maintenance that
Add: - 50 per cent of the average depreciation of the last two years. The above income is calculated
For calculation of FOIR the installments of all the loans that one has availed of currently for which
repayment is being made is taken into account and the eligibility is worked out. The lower of the
(vi)Credit documentation:-
Given below is the exhaustive list of credit documents- that need to be submitted for a general
home loan product. The documents vary from one HFI/B to another based on one's employer,
For salaried slips for the last three months appointments letter-salary certificate-retainership
income document for self -employee - last three years profit and loss account statement duly
duly attested by Chartered Accountant, last three years Income Tax Returns with computation
Profile of employer on employers letterhead (to be signed by a senior person in the organization)
comprising
• Name of promoter/directors
• Background of promoters/directors
• Number of employees
• List of branches/factories
• List of suppliers
• List of clients/customers
• Turnover of employer
• Annual reports of the employer for the last two to three years.
certificate-Birth certificate.
Ration card-Passport- PAN card-Rent agreement, if the customer is staying currently on rent- Bank
Pass book-Allotment letter from the company if he/she is residing in company quarters.
A copy of the official gazette – A copy of a newspaper advertisement publicizing the name
change-Marriage certificates.
the last six months of all current accounts, if self-employed-any other photocopies of investments
Legal Documentation the typical legal documents that need to be submitted to the HFC arc
discussed here. Given below is a list of legal property documents that need to be submitted to the
HFC for mortgage of the property. The name and the list of documents vary from state to state and
also depend on the type of property being financed. A broad outline of the documents required is
given below.
b) Title documents of the property that include -sale agreement duly Registered-Own contribution
e) In case of alternator additional security, documents for the same depending upon the security
details.
The above documents are only indicative in nature and do not cover the entire list. It may, also be
noted that in a resale case, the previous chain of agreement also need to be taken.
(viii) The tax benefits that are applicable to housing loans for individuals:-
Currently Tax Benefits to individuals are available only for the Home Loans and Home Extension
Loans products. The benefits available are covered under these sections.
Property Insurance:-
Is it compulsory to insure the property? some HFls insist on a mortgage redemption life
insurance policy. In this case the customer gets a benefit of an interest rate reduction. Though the
HFI may not insist, it is better to go in for property insurance to safeguard the asset against any
sort of damage or loss. The customer can select the tenure for the property insurance. The insurance
premium is changed up front. Most insurance companies provide for huge discounts on the rate of
premium for larger tenures. The premium charged currently is seventy-seven for every lakh of
property for a year. So a customer has to fulfill various conditions to be eligible for availing home
loan from a Housing Finance Institution/Bank After fulfilling these conditions, a customer can
avail loan at low interest rate i.e. fixed rate floating rate. A decision on whether one should go in
for a fixed-rate loan or a floating-rate loan now is a function of two factors i.e. One's perception
of where interest rates in the economy are headed and one' capacity to ride the interest rate changes.
A floating-rate loan let one take advantage of further falls in interest rates but one stand to loose if
interest rate, rise again. However this decision is based on the perception of the consumer.
LITERATURE
REVIEW
CHAPTER-4
LITERATURE REVIEW
SUMMARY:-
• After going through previous studies of Home loans I came to conclude that-
• Home loans have an inverse relation with interest rates i.e. when interest rate low the demand of
• People are going more towards home loans than private mortgage insurance.(Berstain 2008)
• Government taking various steps to encourage people to go toward home loan.(Haavio, Kauppi
2000)
• Growth of home loans are due to increase of living standard of people, shifting from joint family
• There are some problems also attach with these home loans such as time i.e filling of application
of loan to closing ,people have their own specified needs from these home loans which are not
• SBI provide a very low interest rate on home loans as compared to other banks. (SBI May 2000)
Berstain David (2009) examined in his study taken from 2001 to 2008 that in this period there is
increase use of home loans as compared to private mortgage insurance (PMI).he have divided his
study into four sections. Section 1 describes why people are going more for home loans than PMI.
the main reason for this that now home loans market provide Piggybank loans for those people
who don’t have 20% of down payment. Section 2 tells the factors responsible for the growth of
home loans and the risks on shifting toward home equity market without any PMI coverage. PMI
can protect lenders from most losses up to 80% of LTV and the absence of PMI will result in
considerable losses in an environment. Section 3 tells the measures in changes of type of loans.
For this he have taken the data from the 2001 and 2007 AHS a joint project by HUD and Census
The results of this analysis presented in Table One reveal a sharp increase in the Prevalence of
owner occupied properties with multiple mortgages among properties with Newly originated first
mortgages. Section 4 describe the Financial status of single-lien and multiple-lien households and
for this he have taken the survey of consumer finance and show that financial position is more
Vandell, Kerry D (2008) analysis the sharp rise and than suddenly drop down home prices from
the period 1998- 2008. changes in prices are for the reasons as such economic fundamentals , the
problem was not subprime lending per se, but the Fed’s dramatic reductions, then increases in
interest rates during the early- mid-2000 , the housing ―boom was concentrated in those markets
with significant supply-side restrictions, which tend to be more price-volatile; he problem was not
in the excess supply of credit in aggregate, or the increase in subprime per se, but rather in the
La courr, Micheal (2007) analysis in his study the factors affected the increase in the level of
Annual percentages rates (APR) spread reporting during 2005 over 2004.the three main factors are
changes in lender business practices; (2) changes in the risk profile of borrowers; and (3) changes
in the yield curve environment. The result show that after controlling for the mix of loan types,
credit risk factors, and the yield curve, there was no statistically significant increase in reportable
volume for loans originated directly by lenders during 2005, though indirect, wholesale
originations did significantly increase. Finally, given a model of the factors affecting results for
2004-2005, we predict that 2006 results will continue to show an increase in the percentage of
loans that are higher priced when final numbers are released in September 2007.
La cour Micheal (2006) examined the home purchase mortgage product preferences of LMI
households. Objectives of his study to analysis the factors that determined factors their choice of
mortgage product is different income groups have some specified need to meet particular product.
The role pricing and product substitution play in this segment of the market and do results vary
when loans are originated through mortgage brokers? For this they have use the regression analysis
and the results are high interest risk reduce loan value. Self- employed borrower chooses reduce
documented loans than salaried workers use of this product type seems to be more prevalent among
borrowers with substantial funds for down payment and better credit scores. In case of pricing
Multi families requires price premium and larger loans carry lower rate. And the role of time,
particularly, the time required for the loan to proceed from application to closing it is find that
government lending taking the longest time and Nonprime loans the shortest time Multi families
properties take longer time in closing. And during peak season take longer time to close. And for
last objective it is find that broker originated loans close faster. The effect of mortgage brokers on
pricing and other market outcomes is fertile ground for additional research.
Dr. Rangarajan C. (2001) said that the financial system of India built a vast network of financial
institutions and markets over times and the sector is dominated by banking sector which accounts
Haavio,Kauppi (2000) stated that countries where a large proportion of the population lives in
owner – occupied housing are experiencing higher unemployment rates. Than countries where the
majority of people live in private rental housing, which might suggest that rental housing enhances
labour mobility. In this paper, they develop a simple inter temporal two region model that allow
us to compare owner occupied housing markets to rental markets and to analyze how these
alternative arrangements allocate people in space and time .Announced that it will offer loans for
Rs. 2-10 lakh at 12.5 percent the lowest rate offered by any housing finance provider, big brother
SBI has taken the rate war in the home loans category to new heights. This is because, apart from
the low rate, the interest on these loans is calculated on principal, which is reduced every month
unlike other housing finance companies which calculate interest on annually reducing basis.
Narasimham Committee (1991) points out that although the banking system in our country has
made rapid progress during the last two decades, there is decline in productivity and efficiency
and erosion of profitability. The committee strongly make indications of liberlising, deregulating
Ojha (1987) in his paper "modern international caparison of productivity and Profitability of
public sector banks of India" making Comparison on the basis of per employee indicators and
taking examples of state bank group and Punjab National bank noted that Indian banks are the
lowest in all accounts. However such international comparison will not be fair for numbers of
reasons.
Godse (1983) in his essay, “looking a fresh at banking productivity” observe that productivity
productivity of the UK clearing banks is improving, they are still heavily over manned as compared
Kulkarni (1979) in his study “Development responsibility and profitability of banks” stated that
while considering banks costs and profits, social benefits arising out of it cannot be ignored. He
suggested that while meeting social responsibility banks should try to make developmental
Varde and Singh (1979) in a study "profitability of commercial banks" over 15 years gave
consideration to two types of factors that effects interest rates levels i.e. internal factors (including
Banking Commission (1972) reviewed bank operating methods and procedures and made
services, credit procedure and internal control systems. It observed that present methods of
working out branch profitability are not appropriate and an integrated costing and financial
Department of Banking operations and development, RBI : Bombay observed that the rapid
expansion of banks activities since 1970 called for a phase of consolidations to improve the quality
RESEARCH METHODOLOGY
Research methodology is a methodology for collecting all sorts of information & data pertaining
to the subject in question. The objective is to examine all the issues involved & conduct situational
analysis. The methodology includes the overall research design, sampling procedure & fieldwork
done & finally the analysis procedure. The methodology used in the study consistent of sample
survey using both primary & secondary data. The primary data has been collected with the help of
questionnaire as well as personal observation book, magazine; journals have been referred for
secondary data. The questionnaire has been drafted & presented by the researcher himself.
MEANING OF RESEARCH:-
Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic.
Current English lays down the meaning of research as “a careful investigation or inquiry
specially through search for new facts in any branch of knowledge.” Redman and Mory
define research as a “systematized effort to gain new knowledge.” Some people consider
voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the
unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full
and fuller understanding of the unknown. This inquisitiveness is the mother of all
knowledge and the method, which man employs for obtaining the knowledge of whatever
the unknown, can be termed as research. Research is an academic activity and as such the
term should be used in a technical sense. According to Clifford Woody research comprises
collecting, organizing and evaluating data; making deductions and reaching conclusions;
and at last carefully testing the conclusions to determine whether they fit the formulating
research as “the manipulation of things, concepts or symbols for the purpose of generalizing
theory or in the practice of an art.” Research is, thus, an original contribution to the existing
stock of knowledge making for its advancement. It is the pursuit of truth with the help of
study, observation, comparison and experiment. In short, the search for knowledge through
objective and systematic method of finding solution to a problem is research. The systematic
approach concerning generalisation and the formulation of a theory is also research. As such
the term ‘research’ refers to the systematic method consisting of enunciating the problem,
formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching
certain conclusions either in the form of solutions(s) towards the concerned problem or in
OBJECTIVES OF RESEARCH:-
scientific procedures. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Though each research study has its own specific
purpose, we may think of research objectives as falling into a number of following broad
groupings:
To gain familiarity with a phenomenon or to achieve new insights into it (studies with
group(studies with this object in view are known as descriptive research studies);
To determine the frequency with which something occurs or with which it is associated
with something else (studies with this object in view are known as diagnostic research
studies);
To test a hypothesis of a causal relationship between variables (such studies are known
MOTIVATION IN RESEARCH:-
What makes people to undertake research? This is a question of fundamental importance. The
possible motives for doing research may be either one or more of the following:-
Desire to face the challenge in solving the unsolved problems, i.e., concern over practical
However, this is not an exhaustive list of factors motivating people to undertake research
curiosity about new things, desire to understand causal relationships, social thinking and
awakening, and the like may as well motivate (or at times compel) people to perform
research operations.
TYPES OF RESEARCH: -
of the state of affairs as it exists at present. In social science and business research
we quite often use the term Ex post facto research for descriptive research studies.
The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. Most ex post
facto research projects are used for descriptive studies in which the researcher seeks
to measure such items as, for example, frequency of shopping, preferences of people,
or similar data. Ex post facto studies also include attempts by researchers to discover
causes even when they cannot control the variables. The methods of research utilized
in descriptive research are survey methods of all kinds, including comparative and
correlational methods. In analytical research, on the other hand, the researcher has
to use facts or information already available, and analyze these to make a critical
Applied vs. Fundamental: - Research can either be applied (or action) research or
fundamental (to basic or pure) research. Applied research aims at finding a solution
but research aimed at certain conclusions (say, a solution) facing a concrete social
economic or political trends that may affect a particular institution or the copy
research (research to find out whether certain communications will be read and
applied research. Thus, the central aim of applied research is to discover a solution
for some pressing practical problem, whereas basic research is directed towards
finding information that has a broad base of applications and thus, adds to the already
when we are interested in investigating the reasons for human behaviour (i.e., why
important type of qualitative research. This type of research aims at discovering the
underlying motives and desires, using in depth interviews for the purpose. Other
techniques of such research are word association tests, sentence completion tests,
story completion tests and similar other projective techniques. Attitude or opinion
research i.e., research designed to find out how people feel or what they think about
especially important in the behavioural sciences where the aim is to discover the
underlying motives of human behaviour. Through such research we can analyze the
make people like or dislike a particular thing. It may be stated, however, that to apply
qualitative research in practice is relatively a difficult job and therefore, while doing
concepts or to reinterpret existing ones. On the other hand, empirical research relies
on experience or observation alone, often without due regard for system and theory.
and actively to go about doing certain things to stimulate the production of desired
information. In such a research, the researcher must first provide himself with a
working hypothesis or guess as to the probable results. He then works to get enough
facts (data) to prove or disprove his hypothesis. He then sets up experimental designs
which he thinks will manipulate the persons or the materials concerned so as to bring
when proof is sought that certain variables affect other variables in some way.
Some Other Types of Research: - All other types of research are variations of one
or more of the above stated approaches, based on either the purpose of research, or
done, or on the basis of some other similar factor. Form the point of view of time,
former case the research is confined to a single time-period, whereas in the latter
case the research is carried on over several time-periods. Research can be field-
approaches to reach the basic causal relations. Such studies usually go deep into the
causes of things or events that interest us, using very small samples and very deep
rather than their testing, whereas formalized research studies are those with
that which utilizes historical sources like documents, remains, etc. to study events
or ideas of the past, including the philosophy of persons and groups at any remote
point of time. Research can also be classified as conclusion-oriented and decision-
wishes. Decision-oriented research is always for the need of a decision maker and
the researcher in this case is not free to embark upon research according to his own
RESEARCH APPROACHES:-
The above description of the types of research brings to light the fact that there are two basic
approaches to research, viz., quantitative approach and the qualitative approach. The former
involves the generation of data in quantitative form which can be subjected to rigorous
quantitative analysis in a formal and rigid fashion. This approach can be further sub-
classified into inferential, experimental and simulation approaches to research. The purpose
inferred that the population has the same characteristics. Experimental approach is
characterised by much greater control over the research environment and in this case some
variables are manipulated to observe their effect on other variables. Simulation approach
involves the construction of an artificial environment within which relevant information and
data can be generated. This permits an observation of the dynamic behaviour of a system
(or its sub-system) under controlled conditions. The term ‘simulation’ in the context of
business and social sciences applications refers to “the operation of a numerical model that
represents the structure of a dynamic process. Given the values of initial conditions,
parameters and exogenous variables, a simulation is run to represent the behaviour of the
process over time.” Simulation approach can also be useful in building models for
results either in non-quantitative form or in the form which are not subjected to rigorous
SIGNIFICANCE OF RESEARCH:-
“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry, and inquiry leads to invention” is a famous Hudson Maxim in context of which the
progress possible. Research inculcates scientific and inductive thinking and it promotes the
development of logical habits of thinking and organization. The role of research in several
fields of applied economics, whether related to business or to the economy as a whole, has
greatly increased in modern times. The increasingly complex nature of business and
government has focused attention on the use of research in solving operational problems.
Research, as an aid to economic policy, has gained added importance, both for government
and business. Research provides the basis for nearly all government policies in our
economic system. For instance, government’s budgets rest in part on an analysis of the needs
and desires of the people and on the availability of revenues to meet these needs. The cost
of needs has to be equated to probable revenues and this is a field where research is most
needed. Through research we can devise alternative policies and can as well examine the
but research certainly facilitates the decisions of the policy maker. Government has also to
chalk out programmes for dealing with all facets of the country’s existence and most of
these will be related directly or indirectly to economic conditions. The plight of cultivators,
the problems of big and small business and industry, working conditions, trade union
activities, the problems of distribution, even the size and nature of defence services are
matters requiring research. Thus, research is considered necessary with regard to the
is collecting information on the economic and social structure of the nation. Such
information indicates what is happening in the economy and what changes are taking place.
Collecting such statistical information is by no means a routine task, but it involves a variety
of research problems. These day nearly all governments maintain large staff of research
technicians or experts to carry on this work. Thus, in the context of government, research
as a tool to economic policy has three distinct phases of operation, viz., (i) investigation of
economic structure through continual compilation of facts; (ii) diagnosis of events that are
taking place and the analysis of the forces underlying them; and (iii) the prognosis, i.e., the
prediction of future developments. Research has its special significance in solving various
operational and planning problems of business and industry. Operations research and market
research, along with motivational research, are considered crucial and their results assist, in
more than one way, in taking business decisions. Market research is the investigation of the
structure and development of a market for the purpose of formulating efficient policies for
mathematical, logical and analytical techniques to the solution of business problems of cost
motivations underlying the consumer (market) behaviour. All these are of great help to
people in business and industry who are responsible for taking business decisions. Research
with regard to demand and market factors has great utility in business. Given knowledge of
future demand, it is generally not difficult for a firm, or for an industry to adjust its supply
schedule within the limits of its projected capacity. Market analysis has become an integral
tool of business policy these days. Business budgeting, which ultimately results in a
projected profit and loss account, is based mainly on sales estimates which in turn depends
on business research. Once sales forecasting is done, efficient production and investment
programmes can be set up around which are grouped the purchasing and financing plans.
Research, thus, replaces intuitive business decisions by more logical and scientific
decisions. Research is equally important for social scientists in studying social relationships
and in seeking answers to various social problems. It provides the intellectual satisfaction
of knowing a few things just for the sake of knowledge and also has practical utility for the
social scientist to know for the sake of being able to do something better or in a more
efficient manner. Research in social sciences is concerned both with knowledge for its own
sake and with knowledge for what it can contribute to practical concerns. “This double
emphasis is perhaps especially appropriate in the case of social science. On the one hand,
its responsibility as a science is to develop a body of principles that make possible the
understanding and prediction of the whole range of human interactions. On The other hand,
because of its social orientation, it is increasingly being looked to for practical guidance in
solving immediate problems of human relations.” In addition to what has been stated above,
the significance of research can also be understood keeping in view the following points:
To those students who are to write a master’s or Ph.D. thesis, research may mean a
livelihood;
To philosophers and thinkers, research may mean the outlet for new ideas and
insights;
To literary men and women, research may mean the development of new styles and
creative work;
To analysts and intellectuals, research may mean the generalizations of new theories.
This , research is the fountain of knowledge for the sake of knowledge and an important
source of providing guidelines for solving different business, governmental and social
problems. It is a sort of formal training which enables one to understand the new
This project is based on exploratory study as well as descriptive study. It was an exploratory study
when the customer satisfaction level was studied to suggest new methods to improve the services
of DHFL in providing home loans and it was descriptive study when detailed study was made for
RESEARCH PROBLEM:-
DHFL Main Branch, Kanpur want to know about the customer perception about the
To find out the need of the customer and hence formulate the strategy to level the economy
in the society.
To find out the need of the customer in Kanpur region and introduce new product or
HYPOTHESIS:-
POPULATION SIZE:-
The whole market of Gumti and P.Road are the population size.
SAMPLE SIZE:-
Sample of 50 people was taken into study, and their data was collected.
SAMPLING METHOD:-
Data collection is mainly dealt with the way data is collected. We have Collected data mainly
Primary data collection – we collected primary data by visiting individual Houses and meeting
with individual persons. We also visited some apartments. Here, we meet with societies Managers
and try to convince them to arrange a meeting with society persons. We gave information to them
Secondary data collection – it is collected through secondary sources like data of sells of the flat
from some of my friends and senior’s company, Data from LDA etc. After that we make call to
RESEARCH TOOLS:-
Out of the total respondents, the respondents who responded logically were taken into account
while going into statistical details & analysis of data. The tools that have been used for analyzing
data & inference drawing are mainly statistical tools like percentage, ranking, averages, etc. As
per questionnaire and market surveys I have find out different responses from different people.
According to their responses I analyze the findings and draw certain remarks.
METHOD OF ORGANIZATION OF DATA:-
Once you create, gather, or start manipulating data and files, they can quickly become
disorganized. To save time and prevent errors later on, you and your colleagues should decide how
you will name and structure files and folders. Including documentation (or 'metadata') will allow
you to add context to your data so that you and others can understand it in the short, medium, and
long-term.
Managing References
Organizing E-mail
Choosing a logical and consistent way to name and organize your files allows you and others to
easily locate and use them. Ideally, the best time to think how to name and structure the documents
Agreeing on a naming convention will help to provide consistency, which will make it easier to
find and correctly identify your files, prevent version control problems when working on files
collaboratively. Organizing your files carefully will save you time and frustration by helping you
and your colleagues find what you need when you need it.
How should I organize my files?
Whether you are working on a stand- alone computer, or on a networked drive, the need to establish
a system that allows you to access your files, avoid duplication, and ensure that your data can be
backed up, takes a little planning. A good place to start is to develop a logical folder structure. The
Use folders - group files within folders so information on a particular topic is located in
one place
Name folders appropriately - name folders after the areas of work to which they relate
and not after individual researchers or students. This avoids confusion in shared workspaces
if a member of staff leaves, and makes the file system easier to navigate for new people
Be consistent – when developing a naming scheme for your folders it is important that once
you have decided on a method, you stick to it. If you can, try to agree on a naming scheme
Structure folders hierarchically - start with a limited number of folders for the broader
Separate ongoing and completed work - as you start to create lots of folders and files, it
is a good idea to start thinking about separating your older documents from those you are
currently working on
Try to keep your ‘My Documents’ folder for files you are actively working on, and
every month or so, move the files you are no longer working on to a different folder or
location, such as a folder on your desktop, a special archive folder or an external hard drive
Backup – ensure that your files, whether they are on your local drive, or on a network drive,
are backed up
Review records - assess materials regularly or at the end of a project to ensure files are
not kept needlessly. Put a reminder in your calendar so you do not forget!
consistent
Vocabulary – choose a standard vocabulary for file names, so that everyone uses a common
language
Punctuation – decide on conventions for if and when to use punctuation symbols, capitals,
Dates – agree on a logical use of dates so that they display chronologically i.e. YYYY-
MM-DD
Order - confirm which element should go first, so that files on the same theme are listed
Numbers – specify the amount of digits that will be used in numbering so that files are
How should I name my files, so that I know which document is the most recent version?
Very few documents are drafted by one person in one sitting. More often there will be several
people involved in the process and it will occur over an extended period of time. Without proper
controls this can quickly lead to confusion as to which version is the most recent. Here is a
Use a 'revision' numbering system. Any major changes to a file can be indicated by whole
numbers, for example, v01 would be the first version, v02 the second version. Minor
changes can be indicated by increasing the decimal figure for example, v01_01 indicates a
minor change has been made to the first version, and v03_01 a minor change has been made
When draft documents are sent out for amendments, upon return they should carry
additional information to identify the individual who has made the amendments.
Example: a file with the name datav01_20130816_SJ indicates that a colleague (SJ) has
made amendments to the first version on the 16th August 2013. The lead author would then
add those amendments to version v01 and rename the file following the revision numbering
system.
Include a 'version control table' for each important document, noting changes and their
dates alongside the appropriate version number of the document. If helpful, you can include
the file names themselves along with (or instead of) the version number.
To ensure that you understand your own data and that others may find, use and properly cite your
data, it helps to add documentation and metadata (data about data) to the documents and datasets
you create.
The term 'documentation' encompasses all the information necessary to interpret, understand and
use a given dataset or set of documents. On this website, we use 'documentation' and 'metadata'
(data about data - usually embedded in the data files/documents themselves) interchangeably.
It is a good practice to begin to document your data at the very beginning of your research project
and continue to add information as the project progresses. Include procedures for documentation
There are a number of ways you can add documentation to your data:
1-Embedded documentation:-
Information about a file or dataset can be included within the data or document itself. For digital
datasets, this means that the documentation can sit in separate files (for example text files) or be
integrated into the data file(s), as a header or at specified locations in the file. Examples of
2-Supporting documentation:-
This is information in separate files that accompanies data in order to provide context,
documentation include:
Catalogue metadata
Supporting documentation should be structured, so that it can be used to identify and locate the
data via a web browser or web based catalogue. Catalogue metadata is usually structured according
to an international standard and associated with the data by repositories or data centres when
Title
Description
Creator
Funder
Keywords
Affiliation
The open source ISA metadata tracking tools help to manage an increasingly diverse set of life
technologies.
Built around the ‘Investigation’ (the project context), ‘Study’ (a unit of research) and ‘Assay’
(analytical measurement) general-purpose Tabular format, the ISA tools helps you to provide rich
description of the experimental metadata (i.e. sample characteristics, technology and measurement
types, sample-to-data relationships) so that the resulting data and discoveries are reproducible and
reusable.
Bio Sharing - searchable portal of inter-related data standards, databases, and policies for
life sciences
Bio Sharing is a curated, searchable portal of inter-related data standards, databases, and policies
Managing References
Projects can last for months or years, and it is easy to lose track of which piece of information
came from which source. It can be a challenge to have to reconstruct half of your citations in the
scramble at the end of the project! Your future self may not remember everything that seems
obvious in the present, so it is important to take clear notes about your sources.
Reference management software helps you keep track of your citations as you work, and partially
automates the process of constructing bibliographies when it is time to publish. The University of
Who can help me with reference conventions and formats for my academic discipline or
particular project?
Your departmental librarian will be able to help you pick the right format for references and will
probably know about some useful search and management tools that you have not used before.
Additionally, your college librarian is also a very good resource and is there to help.
Find your departmental and college librarian on the University's Libraries Directory.
3-Organizing e-mail:-
Most people now routinely send and receive lots of messages every day and as a result, their inbox
can get very quickly overloaded with hundreds of personal and work-related email. Setting aside
some time to organize your emails will ensure information can be found quickly and easily, and is
stored securely.
Apart from the obvious frustration and time wasted looking for that email you remember sending
to someone last month, email is increasingly used to store important documents and data, often
with information related to the attachments within the email itself. Without the proper controls in
place they can often be deleted by mistake. It is also important to remember that your work email
comes under The Data Protection Act 1998 and the Freedom of Information Act 2000, so your
If your emails have got out of control there are a number of immediate steps you can take to control
the problem:
Archive your old emails. If you have hundreds of emails hanging around from more than
a month ago, move them into a new folder called something like "Archive". You can always
Now go through your remaining inbox email by email. If an email is useless, delete it. If
not, ask yourself: is it "active" - is there a specific action you, or someone else, need to take,
or do you just vaguely think it is worth keeping? If the latter, move it to the archive.
How can I ensure my emails remain organized?
Here are some general tips to ensure your email remains organized in the long term:
Delete emails you do not need. Remove any trivial or old messages from your inbox and
Use folders to store messages. Establish a structured file directory by subject, activity or
project.
Separate personal emails. Set up a separate folder for these. Ideally, you should not
Limit the use of attachments. Use alternative and more secure methods to exchange data
where possible (see ‘data sharing’ for options). If attachments are used, exercise version
control and save important attachments to other places, such as a network drive.
20%
INTERPRETATION:-
It can be interpreted that 50% of people are taken home loan before one year, 30% are taken home
loan before two to three years while 20% taken home loan before more than three years.
Q2. Reason for taking Home Loan from DHFL?
6%
20%
14% Faster processing
Interest rates
Brand image of DHFL
INTERPRETATION:-
It can be interpreted that the 40% persons take DHFL home loans for low interest rates, 20%
persons take loans for faster processing, 20% persons take loans for brand image of DHFL,
14% persons take loan for margin amount while 6% persons take loans for other reasons.
Q3. How do you rate the Interest rates charged by DHFL?
4%0% 10%
6%
Highly satisfactory
Satisfactory
Averagely satisfactory
Dissatisfactory
Highly dissatisfactory
80%
INTERPRETATION:-
It can be interpreted that 10% of people are highly satisfied by the interest rates of DHFL,
80% are satisfied by interest rate, 6% are averagely satisfied by interest rates, 4% are
10% 0%
INTERPRETATION:-
It can be interpreted that 60% of people are highly satisfied with the EMI of DHFL, 20%
are satisfied with EMI, 10% are averagely satisfied with EMI, 10% are dissatisfied while
4%
10%
Highly satisfactory
40% Satisfactory
16%
Averagely satisfactory
Dissatisfactory
Highly dissatisfactory
30%
INTERPRETATION:-
It can be interpreted that 40% of people are highly satisfied with the Documentation
procedure of DHFL, 30% are satisfied with Documentation procedure, 16% are averagely
satisfied with Documentation procedure, 10% are dissatisfied while 4% are highly
dissatisfied.
Q6. How do you rate the Processing Fees of DHFL?
2%
12%
30% Highly satisfactory
Satisfactory
16%
Averagely satisfactory
Dissatisfactory
Highly dissatisfactory
40%
INTERPRETATION:-
It can be interpreted that 30% of people are highly satisfied with the Processing fees of
DHFL, 40% are satisfied with Processing fees, 16% are averagely satisfied with Processing
2%
8% 0%
Highly satisfactory
Satisfactory
50% Averagely satisfactory
40% Dissatisfactory
Highly dissatisfactory
INTERPRETATION:-
It can be interpreted that 50% of people are highly satisfied with the Sanctioning Procedure
of DHFL, 40% are satisfied with the Sanctioning Procedure, 8% are averagely satisfied with
the Sanctioning Procedure, nobody are dissatisfied while 2% are highly dissatisfied.
Q8. How do you rate the Sanctioning Time of DHFL?
2%
8% 0%
Highly satisfactory
Satisfactory
30% Averagely satisfactory
60% Dissatisfactory
Highly dissatisfactory
INTERPRETATION:-
It can be interpreted that 60% of people are highly satisfied with the Sanctioning time of
DHFL, 30% are satisfied with the Sanctioning time, 8% are averagely satisfied with the
6%0%
20%
Highly satisfactory
24%
Satisfactory
Averagely satisfactory
Dissatisfactory
Highly dissatisfactory
50%
INTERPRETATION:-
It can be interpreted that 20% of people are highly satisfied with the Fore Closure Charges
of DHFL, 50% are satisfied with the Fore Closure Charges, 24% are averagely satisfied
with the Fore Closure Charges,6 % are dissatisfied while nobody are highly dissatisfied.
Q10. Are you satisfied with DHFL Home Loans?
20%
Yes
N0
80%
INTERPRETATION:-
It can be interpreted that 80% of people are satisfied with DHFL home loans while 20% are
FINDINGS
From this project it is found that DHFL Home Loans having the 1st place in the market at
KANPUR, but HDFC and ICICI also working hard for improving their market share in home loan
1. It has been observed that a person first of all come to the DHFL for sanctioning their loan
but bad response from DHFL force them to switch to the other bank.
2. All of DHFL customers are satisfied with the services provided by the bank.
3. Many of these customers are well aware of DHFL and their home loan product and
satisfied with the low interest rate and longer repayment period of the advance product.
4. Most of the customers at Kanpur feels that DHFL really trying hard for improving their
services.
5. Approximately 43% of product users said that the service of DHFL in product is excellent.
7. Many customers have no time to call customer care so that they are not able to know about
8. Most customers are shifted from other bank’s product to DHFL because of hidden charges,
9. Government employees are more concern than private employees for product.
CHAPTER-8
RECOMMENDATIONS
1. Customer awareness program is required so that more people should attract towards
product.
2. If there are any kind of hidden charges than that must disclose to customer before giving
loan to them.
3. DHFL must take some steps so that customers can get their loan in time. Like phone
verification by customer care that one customer is got their loan on time or not .It must be
4. DHFL should more concern about physical verification rather than phone verification so
5. Product selling agents must not give any type of wrong information regarding product.
7. DHFL customer care should more concern about the fastest settlement of customer
problems.
8. Before deducting or charging any monetary charge DHFL must consult with customer.
9. Agents should be trained, well educated & proper trained to convince the people about
different product.
10. It is the duty of the bank to disclose all the material facts regarding product, like interest
11. Special scheme should be implemented to encourage both customer and agents.
12. The bank should increase the period for repayment of loan.
on customer demand.
15. DHFL must take feedbacks of customers regarding features & services.
CHAPTER-9
CONCLUSION
It can be conclude that customers have a good respond towards DHFL products in Kanpur. DHFL
is in 1st position having large number of customers & providing good services to them. DHFL has
a wide customer base, so they should concentrate on this to retain these customers. In present
scenario DHFL is the largest product issuer in India. Within a very short period of time the
achievement made by DHFL is excellent, what a normal bank cannot expect, but it is being done
by DHFL. It happens due to employee dedication towards the organization, fastest growing Indian
economy, & brand image. To be the largest product issuer, DHFL should focus on-
Customer retention
Apart from all the above, DHFL believe in providing good customer services to their customers
QUESTIONNAIRE
a. Faster Processing
b. Interest Rates
d. Margin Amount
e. Others
a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
Q8. How do you rate the Sanctioning Time of DHFL?
a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
a. Yes
b. No
BIBLIOGRAPHY
REVIEWS:-
Berstain David(2008), “Home equity loans and private mortgage insurance: Recent Trends
Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House Price” Journal of
Fanning (1982), “The Demand for Home Mortgage Debt” Journal of Urban Economics,
Godse (1983), “looking a fresh at banking productivity”, Journal of Real Estate Literature,
Evidence from the 1992 HMDA Data," Federal Reserve Bulletin Vol no 80(2), December
2000 Pp-79-108
Reporting” The American Real Estate and Urban Economics Association, Vol.2 No. 2 May
https://www.slideshare.net/
http://www.projects4mba.com/
https://www.dhfl.com/
https://economictimes.indiatimes.com/
https://www.creditmantri.com/dhfl-home-loan/
https://www.myloancare.in/home-loan-interest-rates/dhfl
https://www.bankbazaar.com/
https://www.creditnation.in/banking-partners/dhfl-home-loan
https://en.wikipedia.org/wiki/Dewan_Housing_Finance_Corporation
https://ndtvprofit.com/
http://docshare.tips/
https://www.zaubacorp.com/