Roll No. 46 (Comparitve Study of Home Loan HDFC and SBI Bank)

A PROJECT REPORT
ON
COMPARATIVE STUDY OF HOME LOAN OF HDFC AND SBI BANK
A project submitted to
University of Mumbai for partial completion of the degree of Bachelor
In Commerce (Accounting and Finance)
Under the Faculty of Commerce
By
VAIBHAVI NITESH KEDARE
Under the Guidance Of
Asst. Prof. Dr. NILESH EKNATH KOLI
CHANGE KANA THANKUR
Art, Commerce and Science College, Plot.No.1, Sector-
11, Khanda Colony, Panvel (W), Dist.-
Raigad, Maharashtra, India
March 2019-2020
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Certificate
This to certify that Ms. Vaibhavi Nitesh kedare has work and
Duly completed her project work for the degree of bachelor of
Commerce under the faculty of commerce in the subject of
Asst. Prof. Nilesh Eknath Koli and her project is entitled, home
Loan- study related to HDFC and SBI bank under my supervision. I
Further certified that the learner under my guidance has done the
Entire work and no part of it has been submitted previously for any
Degree or Diploma of any university.
It is her own work and facts reported by personal findings and
Investigations.
Name and signature of

Seal of the Guiding teacher
college
Date of submission:
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Declaration by learner
I the undersigned Miss VAIBHAVI NITESH KEDARE. here by,

Declare that the work embodied in this project work titled “ COMPARATIVE
STUDY OF HOME LOAN OF HDFC AND SBI BANK” forms any
own contribution to the
Research work carried out under the guidance of Asst. Prof. Dr.
Nilesh Eknath Koli is a result of my own research work and
has not been previously submitted to any other university for
any other Degree/ Diploma to this or any other university.
Wherever reference has been made to previous works of others,
it has been clearly indicated as such and included in the
bibliography.
I, here by further declare that all information of this document
has been obtained and presented in accordance with academic
rules and ethical conduct.
Name and
Signature of the learner
Certified by
Name and signature of the guiding Teacher
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ACKNOWLEDGMENT
TO list who all have helped me is difficult because they are so numerous and the
depth is so enormous.
I would like to acknowledge the following as being idealistic channels and

Fresh dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.
I would like to thank my principal, I/c principal Dr. Vasant D Barhate

For providing the necessary facilities required for completion of this
Project.
I take this opportunity to than our I/c coordinator Asst. Prof. Dr. Nilesh Eknath
Koli
For her moral support and guidance.
I would also like to express my sincere gratitude toward my project guide

Asst. Prof. Dr. Nilesh Eknath Koli, whose guidance and care made the project
Successful.
I would like to thank my college Library, for having provided various

Reference books and magazines related to my project.
Lastly, I would like to thank each person who directly or indirectly helped
Me in the completion of the project especially my parents and peers who
Supported me throughout my project.
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INDEX
Sr. No. Title of Chapter Pa

No
1. Introduction
1.1 Introduction of Home Loan
1.2 History of Home Loan
1.3 Definition of Home Loan
1.4 Advantages and Disadvantages of Home Loan
1.5 Types of Home Loan
1.6 Charges applicable to home loans
1.7 Home loans eligibility criterial
1.8 Practical Problem Faced by Customers in Availing
Home Loan
1.9 Important Measures Take Care Before Applying For
Home Loan
1.10 Important Pointers in Home Loan
1.11 Profile of The Banks
2. Research Methodology
2.1 Objectives
2.2 Hypothesis
2.3 Limitation
2.4 Significance
2.5 Scope of the Study
2.6 Procedure of home loan
2.7 Home loan schemes
2.8 HDFC home loan document required
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3. Review of Literature
4.. DATA Interpretation and Presentation
5 Conclusion and Suggestion
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CHAPTER 1
1.1 INTRODUCTION TO HOME LOAN

A house loan or home loan simply means a sum of money borrowed from a
financial institution or bank to purchase a house. Home loans consist of an
adjustable or fixed interest rate and payment terms.
People generally take a home loan for either buying a house/flat or a plot of
land for construction of a house, or renovation, extension and repairs to the
existing house.
The property is mortgaged to the lender as a security till the repayment of the
loan. The bank or financial institution will hold the title or deed to the
property till the loan has been paid back with the interest due for it.
The interest rates for home loans can be fixed or floating, or partly fixed and
or partly floating, suiting the needs of the borrower.
There are also certain tax benefits available on your home loan under the
Section 80EE of Income Tax Act. However, the Income tax deduction can be
claimed on home loan interest by first time home buyers only.
Loan means money, property, or other material goods given to another party
in exchange for future repayment of the loan value or principal amount, along
with interest or finance charges. A loan may be for a specific, one-time
amount or can be available as an open-ended line of credit up to a specified
limit or ceiling amount.
In finance, a loan is the lending of money by one or more individuals,

organizations, or other entities to other individuals, organizations etc. The
recipient (i.e., the borrower) incurs a debt and is usually liable to
pay interest on that debt until it is repaid as well as to repay the principal
amount borrowed.
The document evidencing the debt (e.g., a promissory note) will normally
specify, among other things, the principal amount of money borrowed, the
interest rate the lender is charging, and the date of repayment. A loan entails
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the reallocation of the subject asset for a period of time, between
the lender and the borrower.
The interest provides an incentive for the lender to engage in the loan. In a
legal loan, each of these obligations and restrictions is enforced by contract,
which can also place the borrower under additional restrictions known as loan
covenants. Although this article focuses on monetary loans, in practice, any
material object might be lent.
Acting as a provider of loans is one of the main activities of financial
institutions such as banks and credit card companies. For other institutions,
issuing of debt contracts such as bonds is a typical source of funding.
Home is a dream of a person that shows the quantity of efforts, sacrifices
luxuries and above all gathering funds little by little to afford one’s dream.
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 financial institutions to the people who
want to have a home. 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, 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 for
housing finance. With the RBI reducing bank rate, the home loan market
rates nose-diving by 50 basis points. The HDFC Bank and Standard chartered
bank 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. HDFC also provides with
Home Improvement Loan for internal and external repairs and other
structural improvements like painting, waterproofing, plumbing and electric
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works, tiling and flooring, grills and aluminium windows. HDFC finances up
to 85% of the cost of renovation (100% for existing customers). Current
status is that HDFC reduced home loan rates by 50 basis points for all its
existing floating rate customers.
1.2 HISTORY OF HOME LOAN
D B Remedios was the first borrower of HDFC, which was the first
organized player in the home loan market. Remedios took a Rs 30,000 loan at a fixed
rate of 10.5 per cent in 1978. The amount was less than half the total amount of Rs
70,000 that he spent to build a house in Mumbai's Malad.
Today, the minimum that most borrowers seek is 65-80 per cent of the purchase
amount. Some still want even more despite the cap prescribed by the housing finance
regulator, National Housing Bank (NHB) and the Reserve Bank of India (RBI).
Home buyers 40 years back had a completely different profile: they were in their mid-
forties or older and most dipped into their provident fund corpus and other savings to
fund a house. For most, taking a loan was an alien concept, partly because of the
social milieu and partly because access to loans was a difficult proposition.
In sharp contrast, home buyers now are younger - in their early thirties - and can put
up much less of their own capital initially. So, loan-to-value ratios are substantially
higher. And home loans have become an essential part of their lives.
The evolution of the Rs 9-lakh crore (outstanding credit as on March 31, 2014) Indian
home loan market is largely a tale of three institutions: HDFC from 1978, ICICI Ltd
(now merged with ICICI Bank) from 1999 and State Bank of India from 2009. All
three either introduced or aggressively pushed concepts that turned the market on its
head. While HDFC
introduced the concept
of housing finance,
ICICI brought
aggression into the
market through the
floating rate concept
from 2000 (HDFC had
this product earlier but
there wasn't much
traction). SBI pushed
the teaser rate (fixed-
cum-floating) through
its network of
branches, the largest in the country.
In early 1970s, there was nothing called a housing finance market. "If you knew the
banker or were a corporate client, you could raise money to build a house," says a
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former banker. So when H T Parekh, former ICICI chairman and paternal uncle of
Deepak Parekh, started HDFC, it was a welcome step. HDFC later helped the
government and other public sector entities set up SBI Home Finance, Canfin Home
Finance, GIC Housing Finance and Gruh Finance. Even foreign banks like Citibank
entered the market in the 1980s catering to premium clients and services by providing
doorstep delivery (in which bank officials visited the customer instead of the other
way round) and introduced the concept of loan against property.
If the home loan market took a big leap in 1999, the credit goes to ICICI which
changed the name of the game with its floating rate loans in early 2000. "Banks and
financial institutions were borrowing short-term and lending long-term, leading to a
huge asset-liability mismatch," says a banker. And customers lapped up floating rates
because of the promise of paying less interest if rates came down. It was also a great
time as rates were at their lowest. Some banks were offering fixed rates of 7.5 per cent
in 2003. Floating rates were as low as 7 per cent or even less.
An ICICI old-timer recalls how Chairman K V Kamath walked out of a meeting to

decide on the launch of the home loan product after he was told that the lender would
achieve half of HDFC's annual sales in five years. The team took the cue and
reworked the projection substantially. In another meeting he said that his main worry
was the day SBI woke up to the potential of home loans.
It took almost a decade for SBI to wake up, but it did so in style. In 2009, then
chairman O P Bhatt disrupted the market by launching the teaser rate - 8 per cent in
the first year, 9 per cent in the next two years and a market-linked rate for the rest of
the tenure . With a CASA (low-cost deposits) of 47.58 per cent, Bhatt could afford to
do it.
Others followed suit after shedding their initial reluctance. For example, HDFC
Chairman Deepak Parekh called it a gimmick but was forced to launch a similar
product. The huge success of teaser rates, however, drew the Reserve Bank of India's
ire. And one of the first things that Pratip Chaudhuri, Bhatt's successor at SBI, did
was to discontinue the product.
Many banks, which could not compete on rates, tried to attract customers by giving a
higher loan-to-value in the garb of home improvement or other kinds of loans. So,
some banks or finance companies gave as much as 110 per cent or 120 per cent of the
purchase amount. The RBI has now capped the loan-to-value limit at 80 per cent for
banks and they cannot pay registration and stamp duty charges. However, NBFCs can
continue to include the latter while giving a home loan.
Of course, one thing still hasn't changed. New borrowers continue to get lower rates
than existing borrowers.
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1.3 DEFINITION OF HOME LOAN
“ housing finance is what allows for the production and consumption of housing. It
refers to the money we use to build and maintain the nation’s housing stock. But it
also refers to the money we need to pay for it, in the form of rents, mortgage loans
and repayments.”
_ Peter King
1.4 ADVANTAGES AND DISADVANTAGES OF HOME LOAN
 Advantages of home loan
1. Tax benefits: –
To encourage more and more people buy their own house, government of
India provides tax deduction on the principal as well as interest paid on home
loan. An individual is eligible to claim a deduction of up to Rs 1.5 lakh under
Section 80C of Income Tax of India 1971 Act in a financial year. While a
deduction of up to Rs 2 lakh is allowed on the interest portion under Section
24B of Income Tax of India Act. The deductions under income tax are only
available after the construction of the house is complete. You can’t claim the
income tax deductions while the property is under construction. Read: to know
more about home loan deductions.
2. No prepayment charges: –
Unlike other loans where lenders charge prepayment penalties on payment

made towards home loan , there are no prepayment penalties on floating rate
home loans . So, whenever you have surplus money, you can utilize it for
making part payment towards your home loan and lower your burden.
However, there will be prepayment charges in case of floating rate home loan.
3. Balance Transfer Facility: –
In case of home loan you have the facility to transfer your home loan to
different lender if he is giving you loan at a lower interest rate. Check out our
Balance Transfer Calculator to know how beneficial it will be for you to
transfer your loan amount.
4. High repayment Tenure:-
Among all types of loan, home loan has the longest repayment tenure which
goes up to 30 years, so one can reduce the burden of equated monthly
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installments by extending the tenure. Use our home loan EMI calculator to
know how EMI change as you change your home loan tenure
5. capital appreciation: –
This is another major benefit of home loan because over the past few decades’
capital appreciations in the case of property prices has been much higher than
the interest required to be paid on housing loan. So for example if a person has
taken a loan of 1,00,000 at the interest rate of 10 per cent and if the value of
that said property increases to 5,00,000 by the end of the tenure then the
interest of 10 per cent will not be big deal. The capital appreciation will take
care of interest expenses and the person will still be in profit only.
 Disadvantages of the home loan

1. Home Loan is a Big Commitment
When you’re approved for a home loan, you’re making a decades-long

commitment. Most of the home loans come with a tenure of 10 to 30 years.
That means a significant time of your life you have to be under a debt. Things
will be more complicated if during this span of time you want to move out or
want to sell the property.
2. They Carry some Risks
The tenure of a decade or two is quite long time and our future is of course
unforeseen. Circumstances can arise that could make it difficult for you to
keep up with your home loan repayments. Unforeseen life events like illness,
unemployment or divorce could put you in a tough financial condition and
your inability to repay the loan can lead to loss of your property. This means
the bank or NBFC has the authority to sell your home and get the money back
which bank has given as a home loan
3. Loss of HRA Tax Benefit
HRA stands for House Rent Allowance. HRA is an amount paid by

employers to employees as a part of their salaries. HRA provides employees
with tax benefits for the rent that they pay for housing every year. To claim
HRA for tax benefit, a person should satisfy the following criteria:
 You own a house in one city & stay on rent in another city.
 You house is under construction and you are staying in the same city on rent.
 Your house is in the city and you are staying on rent in the same city: You can
claim HRA exemption, provided that you can prove that your house is far
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away from your workplace. In this case, you can claim tax benefits on both
Home Loan and HRA. Additionally, you need to declare rental income in your
Income Tax returns. If your flat is vacant then you should declare notional
rent.
 Hence, you cannot claim HRA Exemption if you are living in your own house
and the entire component will be taxable. So, when you shift to the house
taken on the home loan, you cannot claim HRA benefits while filing income
tax. Instead, you can claim the tax benefits on the payment made towards your
home loan.
4. Presence of Opportunity Lost
This is the disadvantage which is often overlooked by the home loan takers.
Whatever amount a borrower is paying as a principal component during the
year, the chances of getting a return on that amount is lost. Instead of paying
EMIs if a person invests that amount in a bank fixed deposit of mutual funds,
he would get handsome returns on the principal invested by him.
It is clear from the above discussion that home loans have many benefits and
some drawbacks too. If you are about to apply for home loan, you must look at
both the sides of the coin before coming to the final decision. An online
research is very helpful in taking a decision as one can get home loan details
of almost every lender in their official website. One can even apply for a home
loan online for more convenience. Make an informed decision after being
familiar with each and everything on home loan finance so that you don’t need
to regret on the same in days to come.
5. 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 some times 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
1.5 TYPE OF HOME LOANS
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1) Purchase of Residential Property:
Considered to be the most popular in the home loan category, it is mainly for
the purchase of a new home or a pre-owned home. One of the most commonly
offered products by banks and financial institutions, these loans have interest
rates that are either fixed or floating and are set up initially before the first
disbursement is undertaken. The interest rates for 2019 commence from 8.70%
per annum and can go as high as 10% with additional percentage charges as
processing fees.
2) Construction of a House:
One of the types of home loans is the loan for construction of a house. This
type of loan is specifically structured for those individuals who would intend
to construct a house on their own. The primary basis for this kind of loan is
that the plot should have been purchased within a year, for the plot cost to be
included in the loan amount. The loan amount takes into consideration the cost
of the plot as well as a rough estimate of the construction cost. The disbursal
of the amount could be lump sum or in multiple installments.
3) Purchase of Land:
A majority of banks offer loan options for the purchase of land. Purchasing
land provides a flexible option to the buyer to construct the house as and when
the finances are available. Some borrowers, purchase land solely for the
purpose of investment. A maximum amount of 85% of the cost of the land
assessed by the bank will be sanctioned to the borrower.
4) House Expansion:
Certain banks and financial institutions offer loans for the purpose to expand
or extend the house which would include alterations of the present structure,
construction of new rooms or even increasing a couple of floors. home
extension loan is one such popular option in this category.
5) Home Improvement Loans:

With the diversity of product offerings in the market, one such option is a
home improvement loan for renovations and repair work in and around the
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premises of your home. This could include upgradation of electrical items,
ceiling and tiling repairs or even interior refurbishment. These loans are given
for a period of 15 years with an interest rate range of 9.5% to 10.5 % per year
6) Home Conversion Loans:

A home conversion loan assists those individuals who want to move to a new
house from their existing place of residence which was purchased by a home
loan. By transferring the current loan to the new house, borrowers are able to
fund the purchase of the new house and are not required to repay the previous
home loan. Though it is an extremely convenient option, this category of home
loan is very high- priced.
7) Balance Transfer Home Loans:

This type of home loan can benefit those individuals who are looking for a
lower rate of interest or better services. A balance transfer home loan is a loan
which is transferred from one bank to another bank. At times this kind of loan
is undertaken to repay the remaining loan at a revised much lower rate of
interest offered by the new lender.
8) NRI Home Loans:

These are tailor-made loans for non-resident Indians who are interested in
purchasing residential property in India. The formalities and procedure for this
loan are different from the other loan categories. Depending on the profession
of the NRI the loan is offered for a tenure of 20 to 30 years with an interest
rate range of 8.60% to 10% per year
9) Bridged Loans:
These are short term loans that are structured for those individuals who intend
to purchase a new property. This loan is a stop-gap arrangement facility to aid
the individual to purchase the new property until he can identify a buyer for
his existing property. Usually, the mortgage of the house is considered in this
type of loan.
10) Stamp Duty Loans:

This loan is only offered to cover up the stamp duty charges during the
purchase of the property. This is mainly for borrowers who are purchasing a
high valued property. It is not a widely known segment of loans.
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1.6 CHARGES APPLICABLE TO HOME LOANS :-
The different kinds of charges applicable to home loans are discussed below:
a) Processing fees :-
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
HFls/Bs refund the processing fee if the loan application is rejected.
b) Administrative fees :-
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.
c) Rate of interest :-
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 rate of interest or a variable rate of interest.
d) Legal Charges:-
Some HFIs/Bs mainly Public Sector Banks levy legal charges that they incur on
getting the property documents vetted by their panel of lawyers.
e) Technical Charges:-
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.
f) Stamp duty and registration charges:-
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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.
g) Personal Guarantee from Charges :-

Since the personal guarantee provided by the customer need to be stamped, these
charges are also recovered from the customer. They are charged to him by HFIs who
demand for Guarantees.
h) Cheque Bounce Charges :-

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.
I) Delayed payment charges :-

HFls/Bs charge delayed payment charges from the customer if he/she delays the
payment of installments beyond the due date.
(j) Additional charges :-

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.
(k) Incidental charge :-

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.
l) Prepayment Charges :-
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.
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1.7 HOME LOANS ELIGIBILITY CRITERIAL
Home loan eligibility criteria are the guidelines that you must fulfil to apply for a
home loan scheme. Failing to meet the eligibility criteria leads to loan rejection and a
negative mark on your credit report. To avoid unnecessary hard enquiries and ensure
loan approval, you must check home loan eligibility before applying for the loan.
Home Loan Eligibility Criteria
Indian Residents, Non-Resident Indians (NRIs)

Nationality
and Persons of Indian Origin (PIOs)
Credit Score 550 – 900
Minimum – 18 years
Age Limit
Maximum – 70 years
Total Work
At least 2 years of work experience is required
Experience
Business Continuity At least 3 years of business continuity is required
Atleast Rs. 25,000 per month, may vary across

Minimum Salary
lenders
Loan-to-Value
Up to 90% of property’s value
(LTV) Ratio
Home loan eligibility criteria vary from one lender to another. However, a
common set of housing loan criteria is given below:
 Any salaried or self-employed individual can apply for home loan

 All Indian Residents are eligible to avail home loan. Non-Resident Indian
(NRIs) and Persons of Indian Origin (PIO) under certain home loan schemes
are eligible to avail home loan
 Applicants with good credit score or CIBIL score have higher chance of
getting home loan approval than the applicants with poor credit score
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 The Fixed Obligation to Income Ratio (FOIR) is the proportion of the income
and the existing fixed financial obligations such as credit card bills and loan
EMIs. This ratio should be below 40-50% mark (after considering the
proposed loan’s EMI and other on-going debt payments)
 Age is also factored while assessing home loan application. The minimum age
to apply for home loan is 18 years and the maximum age to apply for home
loan is 70 years. Lenders prefer giving home loan (with tenure of up to 30
years) to younger loan applicants as they have more work life years compared
to someone in their 40s or 50s
 Regular income ensures timely loan payments. Therefore, an applicant with
regular income also has higher chance of loan approval than an applicant with
seasonal source of income
 Net monthly income should be equal or more than Rs. 25,000 to be eligible for
home loan
 Lenders also consider the location and the age of property. They may reject
the loan application if the residual age of property is less or the property does
not fall within the defined geographical limits
 Employment status and stability also helps in getting home loan approval.
Lenders prefer giving out loans to working individuals with at least 2 years of
work experience. In case of a business, it should be running for at least 3 years
 For salaried professionals, about 40% of monthly gross income can be
considered as monthly EMI against the loan
 For self-employed individuals, profit earned determines the eligibility for the
home loan
1.8 Practical problem faced by customers in home loans

 Rejection of home loan application at the first stage
many of the home loan applications do not pass even the first test. They are
out rightly rejected due to incompatibility between the borrower's
qualifications and lenders requirements. It could be the age criteria, income
criteria, proper documents not being submitted, the bank not being able to
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verify your details properly, not passing the field investigations conducted by
the bank and many more.
The best way to avoid being rejected in this way is to check the eligibility
requirements of lending banks carefully and apply only to that bank which
matches your profile.
Keeping proper documents ready and providing accurate, verifiable details to
the banks will ensure that you sail through the preliminary verification
process.
 Processing fee not refunded
If the bank finds that you don't deserve the home loan, this fee won't be
returned. This is the cost of applying for home loans. If in any case, the bank
you have applied to states that it will refund the processing fees in case the
bank doesn't sanction you the home loan, it is better to get any such
declaration in writing and make sure that the clause is enforceable.
A verbal statement by bank authorities won't be of any use unless it is properly

and legally documented. In all other cases there is little remedy for processing
fees being not refunded.
 Sanctioning of less amount

Bank determines the repayment capacity of the borrower on the basis of
his monthly income, running loans, unpaid loans, nature of employment,
past financial history and credit card usage. Even though the lender
rejects the application because of any such reasons, you still have a
solution.
 Discrepancy in interest rate among existing and new home loan

borrowers
The discrepancy in interest rate is a major problem for both existing
and new borrowers. Home loans interest rates are connected to the
benchmark rate of the bank. The variation in the benchmark rate directly
affects the interest rate on home loans.
at 11% interest rate. Here we can see the variation in interest rate
between existing and new borrower.
 Discrepancy in the valuation of the property

A common problem faced by many home loan borrowers is a
discrepancy in the valuation of the property. Banks and NBFCs have
their own technical, legal and financial experts for evaluating the
property value on their specific parameters. Based on the investigation,
they decide the property's value, and that value may be less than what
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you expected. The lender would lend you what it valued only. As a
result, the lender would become ready to lend you less loan amount than
what you expected.
 Excess burden of down payment

Generally, 10 % or tops 20% amount of the total property value is paid
as down payment. This is mandatory, and if this is not paid by the
borrower to the lender, then the lender refuses home loan. The problem
arises when the bank assigns less value to the property, in that case, the
down payment increases and that becomes an extra burden on the home
buyer.
 Title deeds and NOC documentation problems
The title deeds and NOC documents have to be furnished in the bank's format.
Borrowers who don't provide such documents in proper format, will ruin the
entire exercise and won't get any home loan. To avoid falling into such
uncomfortable situation, enquire about all the documents required by banks
beforehand and take necessary steps to get them ready within the stipulated
time frame.
1.9 Important Measures to Take Care Before Applying for A Home

Loan:
We understand the importance of owning a home in one's life and the
challenges associated in buying a home especially, which are relevant to the
finances. Applying for Home Loan is one of them.
Considering the same, we bring to you the 8 important measures that a buyer
should consider while applying for a Home Loan.
 Optimum Down payment:

One must have a budget chalked out before you start looking for a house.
Calculate the down payment to be made which is usually about 20% of the
property value. However, you can choose to always pay more as down
payment basis your budget and availability of funds.
A good tip is to secure your down payment in a manner that it can be
liquidated/or available the moment you decide to buy your choice of home. In
case of a deficit, you may have to take a soft loan from your employer, family
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& friends to bridge the difference. However, try to minimize the borrowing
amount to reduce the interest outgo.
 Check associated fee and charges with the loan:

Home loans have associated fee and change. Processing fee is the most
common fee payable at the time of application. the man advisable to choose a
lender with reasonable fee
 Opt for the best interest rate:

The interest rate on loan is Crucial factor in deciding the financial institution
to take loan from Lower the rate, lower would be the EMI outgo. Home loans
are offered at either fixed or floating interest rates. While fixed interest rates
remain the same throughout the loan tenure, floating rates change with bank’s
changing lending practice. Weigh your options well before deciding on the
loan option.
HDFC LTD, HDFC BANK, PNB Housing Finance, India bulls, Aditya Birla
Housing Finance Ltd with all of them providing loans at 8.50% rate of
interest. The interest rate charged by banks on a home loan is floating, unless
specified.
 Check your eligibility criteria:

Home loan lenders have a list of eligibility criterion and only if you happen to
meet those, you are considered a potential borrower. Banks typically check
your credit history to gauge your repayment pattern and prefer a credit score
of 750 for lending a loan. Age, income, occupation, collateral security, margin
requirements, etc. are also important factors while determining the interest on
loan
 Insure your loan amount:

Once you have taken a loan, the outstanding balance liability falls on your
family's shoulders in your absence. You can avoid this financial burden on
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your loved ones by buying a mortgage redemption insurance cover while
taking home loan. It is a decreasing term plan where the cover amount
decreases as per repayment of loan.
 Legality of the property:

Before zeroing in on your dream property, make sure to check credentials of
the builder Check about the reputation, delivery track record, talk to existing
residents if possible, as next step, check fall property documentation is in
place. With RERA (Real Estate Regulatory Authority). implemented across
regions, you can check the builder's profile online on RERA website too.
Banks often refuse to provide loans for builder's projects which are not RERA
registered is not in their approval list
 Be smart while paying EMIs:

Customers often take up a lot of burden when it comes to paying EMI thinking
that it would get easier with time, as their income would increase eventually.
Consider the possibility of not getting a substantial raise/ increment soon or
other unforeseen circumstances. You should look at a loan to income ratio of
20% to 30%. You can make changes in the tenure to reduce or increase the
EMI amount depending on funds availability in future.
1.10 IMPORTANT POINTERS IN HOME LOANS:
 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 income
of spouse, children& parents staying with you and having regular income.
 Step-up Loan:
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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
Enhance borrower’s ability to pay and 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.
 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.
 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.
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1.11 PROFILE OF THE BANKS
1.11.1 HDFC BANK

The Housing Development Finance Corporation Limited or HDFC was among the
first financial institutions in India to receive an “in principle” approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector. This was done as
part of RBI’s policy for liberalisation of the Indian banking industry in 1994.
HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited,
with its registered office in Mumbai, India. The bank commenced operations as a
Scheduled Commercial Bank in January 1995.
Vision : To be customer driven best managed enterprise that enjoys market leadership
in providing housing related finance.
Mission: To be a World Class Indian Bank. The objective is to build sound customer
franchises across distinct businesses so as to be the preferred provider of banking services
for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank’s risk appetite.
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1.11.2 STATE BANK OF INDIA
State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic
network of over 9000 branches (approximately 14% of all bank branches) and
commands one-fifth of deposits and loans of all scheduled commercial banks in India.
The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries offering merchant banking services, fund management,
factoring services, primary dealership in government securities, credit cards and
insurance. The eight banking subsidiaries are: State Bank of Bikaner and Jaipur
(SBBJ), State Bank of Hyderabad (SBH). State Bank of India (SBI), State Bank of
Indore (SBIR),State Bank of Mysore (SBM),State Bank of Patiala (SBP),State Bank
of Saurashtra (SBS) and State Bank of Travancore (SBT).
Today, State Bank of India (SBI) has spread its arms around the world and has a
network of branches spanning all time zones. SBI's International Banking Group
delivers the full range of cross-border finance solutions through its four wings - the
Domestic division, the Foreign Offices division, the Foreign Department and the
International Services division.
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Vision:
 Customer first.
 First in customer satisfaction
Mission:
 It will be prompt, polite and proactive with our customers.

 It will speak the language of young India.
 It will create products and services that help our customers achieve their goals.
 It will go beyond the call of duty to make our customers feel valued.
 It will be of service even in the remotest part of our country.
 It will offer excellence in services to those abroad as much as we do to those
in India.
 It will imbibe state of the art technology to drive excellence.
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Chapter 2
RESEARCH METHODOLOGY
2.1 OBJECTIVE OF STUDY
 To study the cost of home loans provided by the public and private sector
bank.
 To know that which bank provide batter loan schemes.
 To analyze the home loan scheme by HDFC and SBI banks.
 To know the consumer perception about the home loan of HDFC and SBI
banks.
2.3 HYPOTHESIS
Null (H0) : HDFC BANK IS BETTER THAN SBI BANK TO PROVIDE

GOODS AND SERVICE, FACILITY, BENEFIT FOR CUSTOMER.
Alternative(H1) : HDFC BANK AND SBI BANK THESE BOTH BANK ARE BETTER
IN TO PROVIDE GOODS AND SERVICE ,FACILITY, BENEFIT FOR CUSTOMER.
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2.3 LIMITATIONS OF THE STUDY
1. There was time shortage. Time provided to us was very short which make it
difficult for us to conduct survey at wider range.
2. Sometimes respondents did not respond well to all the questions in the
Questionnaire.
3. Low cooperation from the bank executives make to struggle more, due to which we
were forced to restrict.
4. Some biasness might have occurred in analysis. Because of lack of expert

Knowledge.
2.4 SIGNIFICANCE
 To know the Customers perceptions about home loans of HDFC and
SBI Industrial Credit and Investment Corporation of India.
 To study the satisfaction level of customers about home loans of HDFC and
SBI bank.
 To study the problems faced by customers in obtaining the home loans from
HDFC and SBI bank.
 To comparative study of disbursement of home loan by HDFC and SBI bank.
2.5 SCOPE OF THE STUDY

This study is analysis and comparison of home loans provided by the SBI and HDFC
banks. It is helpful in analysing the home loan service provided to the customer and
their comparison.
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2.6 PROCEDURE OF HOME LOAN
The steps to complete the home loan process are as follows:
Step 1: Fill the Loan Application Form & Attach The Documents
Step 2: Pay The Processing Fee
Step 3: Discussion With The Bank
Step 4: Valuation Of The Documents
Step 5: The Sanction/Approval Process
Step 6: Processing The Offer Letter
Step 7: Processing The Property Papers Followed By A Legal Check
Step 8: Processing A Technical Check & The Site Estimation
Step 9: The Final Loan Deal, Signing The Agreement, & Disbursal
Step 1: Fill the Loan Application Form & Attach the Documents.
The procedure to take Home Loan begins with an application form. This loan

application will require a few basic information about the applicant. Usually, this
includes:
 The personal details of the applicant (Name, Phone number, etc.)

 The residential address of the applicant
 The monthly or yearly income of the applicant
 The educational information of the applicant
 The employment details of the applicant
 The property details on which the loan is applied
 The estimated cost of the property
 The present means of financing the home property
Required documents for home loan procedure:
Once the formal application is filled, the next step is to attach all the valid documents
required by the bank with it. Usually, this includes the:
 Applicant’s income proof
 Applicant’s identity (or ID) proof
 Applicant’s age proof
 Applicant’s address proof
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 Applicant’s employment details
 Applicant’s educational proof (school/diploma/degree certificates)
 Applicant’s bank statements
 Property details on which the loan is applied (if finalized)
There are three important reasons banks ask for all the above proofs from an
applicant:
 One: to authenticate the applicant.
 Two: to obtain valid clues on the applicant’s financial health.
 Three: to check if the applicant is eligible and has sufficient income to pay
back the loan.
Explanation of each document:
1. Income Proof:
This is the applicant’s actual proof of income. This usually encloses a copy of the
each:
 ITR (Income Tax Returns) for the last 3 years
 Annual accounts/Computation of Income (if any)
 Salary slips for the last six months
 Form 16 or Form 16A for the last three months
 Bank statements for the last 6 months
 Other bank accounts (active) if it reflects the current income
2. Identity (or ID) Proof:
This is the applicant’s proof of identity. This document should have a clear
photograph of the person. It can be a copy of any one of the below:
 PAN card of the applicant
 Driving license of the applicant
 Aadhaar card of the applicant
 Voter Id of the applicant
 Passport of the applicant
 Ration card - if it contains the applicant’s photograph
3. Age Proof:
This is the applicant’s proof to validate his/her DOB (Date of Birth) and age. The
applicant can submit a copy of any one of the documents mentioned below:
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Driving license of the applicant
 PAN card of the applicant
 School/college transfer certificate of the applicant
 Ration card of the applicant
4. Address Proof:
This is the applicant’s proof to authenticate his or her residential address. The
applicant can submit a copy of any one of the documents listed below:
 Aadhaar card of the applicant
 Ration card of the applicant
5. Employment Details:
This encloses the applicant’s employer information. If the organization the applicant
is working for, has a standard website, then that will do.
However, if the firm is not popularly known or is small, then the applicant has to
submit a summary of the company profile, which usually includes the below:
 The location of the company the applicant is working for.
 The business sector the company features in.
 The nature of the firm.
 The company’s turnover and profit.
 The number of employees working in the company.
 The number of branches the company holds (with the headquarters).
 The company’s competitors.
 The company’s customers.
6. Educational Proof:
This is the applicant’s piece of evidence of his or her education information. This can
usually include a copy of any one of the documents listed below:
 School certificate of the applicant.
 College graduation certificate of the applicant.
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 Diploma certificate of the applicant.
7. Bank Statements:
This is the applicant’s bank statements of the transactions happened in the last six
months. This is asked by the bank:
 To Check The Activity Level: This applies to a self-employed individual. It
gives a proper evidence of the business activities done through the bank.
 To Check The Average Balance: A sufficient amount of balance maintained
by the applicant can raise a green flag for the loan sanction. So, a bank investigates
this to see the saving and spending habits of the applicant.
 To See The Cheque Returns: This is usually a small fee debited the bank
saying that the cheque handed out by the applicant was actually returned by the
bank. The more the cheque returns, the lesser are the chances for the loan to be
sanctioned.
 To Look For Cheque Bounce: Any cheque(s) that goes on a bounce is visible
in the bank’s statement. Note that every bank has certain norms on how much of
that can be acceptable in a one-year period. The more, the worse.
 To Check For Consistent Periodic Payments: If there are any periodic
payments done to the other financial institutions or banks, then it is a clear sign that
there exists a liability. In such cases, the applicant has to provide complete details.
 To Check For Investments: Any investment made by the applicant will also be
helpful while sanctioning the loan. In fact, this assists a bank to assess the abilities
of an applicant to pay off some amount as a down payment.
8. Property Details:
This is the home property documents for which the applicant applies a loan for. If the
property has been finalized, then the applicant has to submit all the necessary details
to the bank.
Step 2: Pay the Processing Fee
Once the formal application and document submission process is done, the applicant
has to pay the processing fee to the bank. This is the amount collected for maintaining
the applicant’s loan account. It includes sending some confidential paperwork (like IT
certificates, post-dated cheque, etc.) every year.
The processing fee of a bank usually:
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 Ranges from 0.25 % to 0.50 % of the requested loan amount.
Say, for example, the applicant has applied for a home loan of Rs. 15 lakhs, then the
processing fee will be Rs. 3,750 (at 0.25%) and Rs. 7,500 (at 0.50%) respectively.
A commission is then generated by the bank to the agent handling the applicant’s
home loan process, which to an extent is taken from the processing fee paid by the
applicant. Though most banks have a proper fee structure, it can be negotiated. There
is no crime in trying to bargain with the processing fee.
Every bank will have a processing fee for a loan. However, there are banks that offer
zero processing fee home loans. Well, don’t fall for this because this advantage can
call for a higher rate of interest, stamp duties, and other legal charges.
Step 3: Discussion With The Bank
Once the applicant has completed the application and documentation process, he or
she has to wait until the bank or the respective financial company checks the papers. It
usually takes about 1-2 days or even less if the submitted paperwork is correct.
However, there might be times when the bank might want the applicant to pay a visit
to the bank for a face-to-face interaction before the loan is sanctioned. This is done to
collect more details about the applicant and to make sure if he/she will be able to
repay the loan with the interest amount.
Step 4: Valuation Of The Documents
millions of people apply for home loans on a daily basis and to ensure that bank
approves the paperwork as soon as possible, the applicant has to be genuine in the
entire procedure.
Any fake document or fraudulent activity is unacceptable by the bank. It is a criminal
offense and can lead to bigger troubles. As soon as the application form & documents
are submitted, and the processing fee is paid, the bank authority then evaluates them.
A bank examines the following details of an applicant:

 Residential address (previous and current)
 Place where he/she is employed
 Credentials of the employer
 Workplace contact number
 Residence contact number
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Step 5: The Sanction/Approval Process
The approval or sanction part is one of the most crucial stages of a home loan process.
This can either have a fruitful result or can be rejected. It all comes down to the bank.
If it is not satisfied with any of the documents provided by the applicant, the
probability of approval turns less. However, if everything goes well, the loan will be
sanctioned or approved in no time.
A bank usually deep-checks the applicant’s following documents to approve a

home loan:
 The qualification, age, and experience details.

 The transactions made with the applicant’s bank.
 The monthly and yearly income.
 The current employer and the type of job he/she pursues.
 The nature of the business (applicable only for a self-employed).
 The ability to repay the loan amount with the set interest rate.
Based on the information mentioned above, the bank finalizes and communicates the
maximum loan amount the applicant can receive. Finally, this proceeds with an
official sanction letter. It can be either unconditional or can contain a few policies,
which has to be fulfilled by the applicant before the disbursal.
Step 6: Processing The Offer Letter
The loan is sanctioned or approved, the bank then sends a certified offer letter, which
mentions the following details:
 The loan amount that is being sanctioned.
 The interest rate on the total loan amount.
 Whether the interest rate is variable or fixed.
 The loan’s tenure details.
 The mode of loan repayments.
 Terms, policies, and conditions of the home loan.
The Acceptance copy
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Once the applicant agrees to the offer letter, he or she has to sign a duplicate copy of
the offer letter, which is for the bank’s records. Years back, this usually came with a
specific administrative fee. However, it is no longer practiced.
Step 7: Processing The Property Papers Followed By A Legal Check
Once the offer letter is officially accepted by the applicant, the bank next concentrates
on the home property he/she intends to purchase. Even if it is not finalized, the
applicant can request for a time duration to select one.
Once the property is selected, the applicant has to:
 Submit all the original property documents to the bank. It remains with them
until the loan is repaid. Also, this serves as the security towards the home loan the
applicant has applied for.
The original property papers will normally include the following details:
 The name of the seller.
 The identification and address proofs of the seller.
 The name of the property.
 The address of the property.
 The chain of written documents if the seller isn’t the primary or actual owner.
 NOC (No Objection Certificate) from the primary legal owner (if any).
 NOC from the statutory development board representative & cooperative
housing society.
 If the land is already on a lease, the bank will require a NOC from the lessor as
well.
Legal check
Once the property papers are submitted, the bank then validates them for
authentication. This process is termed as “legal check.” In fact, the sale papers
between the applicant and the seller are verified.
These original documents are sent to the bank’s lawyer for an in-depth check. Only
when the lawyer approves all the submitted documents as clear, then everything
related to home loan is good. If not, the applicant will be asked to submit a few more
documents for verification.
Step 8: Processing A Technical Check & The Site Estimation.
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Every bank is highly cautious with the loan it lends and the home property it plans to
finance. Hence, a technical check or a double check is further done. The bank sends a
property expert to check the premises an applicant intends to buy.
Now, this person could either be an employee of the bank or a civil engineer or
someone from an architect’s firm.
The visit to the “site property” is basically conducted for verifying the details
given below:
 The stage in which the construction is.
 Quality of the construction.
 Work progression.
 The time required to build the house.
 The layout of the house and whether the governing authority has permitted it
or not.
 If the builder has valid requisite certificates for construction on the land.
 Property valuation and the environmental areas.
If the construction is already for resale or in a ready stage, then the

representative will check for:
 The building’s age.
 The internal or external property maintenance.
 The loan tenure and if the building falls within the applicant’s loan eligibility
criteria.
 The quality of the construction.
 The surrounding area.
 The valid requisite certificates to hand over the flat/house’s possession to the
buyer.
 The existing mortgage on the home property.
 The property valuation.
 The building’s approval plans, following the government laws, etc.
The site’s value Estimation
Once the expert completes the technical inspection of the site, it is then followed by
determining and checking the property’s overall value. This is basically done because
of the increasing malpractices. There have been multiple cases where the applicants
have shown property purchases from the associated entities at extremely inflated rates
just to acquire cheap loans.
Thus, the risk for a bank to lend the money to his/her applicant has become high.
However, a site’s estimation can help the bank to determine the total loan amount so
that the sanction is straightforward.
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Step 9: The Final Loan Deal, Signing The Agreement, & Disbursal
The Final Loan Deal:

Once the technical and site’s estimation is done by the bank, and the lawyer clears all
the paperwork, the next step is the final registration of the deal. The lawyer of the
bank finalizes the loan documents, drafts them, and have them stamped as well as
signed.
Signing The Loan Agreement:
After the paperwork is complete, the applicant has to sign the agreement of the home
loan. He/she has to submit the cheques (post-dated) for the initial 36 months or the
duration both the parties have agreed upon.
After this, the original property papers have to be handed to the bank. Some banks can
even create a video recording of the applicant handing over these papers to the
bank. This is for the bank’s security, safety, and proof.
This stage is known as the MOE (Memorandum of Execution) and has a stamp duty
based on the state the applicant applies at. This duty is paid by the applicant.
The Loan Disbursal:
Once the applicant signs the papers and everything is legally clear, the loan amount is
given via cheque. However, prior to this, the applicant has to submit a few essential
documents to the bank, as these will serve as his/her personal contribution to the
home property.
If the applicant is trying to source some more funds from outside, then the pieces of
evidence have to be submitted as well. Only then, the bank releases the loan’s part-
disbursement. The cheque is always under either the seller or development/society
authority or builder.
Nevertheless, there can be a few exceptional cases too. Say, for instance, the applicant
has made excess payment from his/her own account, then the cheque is handed to
him/her directly from the bank.
2.7. HOME LOAN SCHEMES
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HDFC HOME LOAN SCHEMES
1. HDFC Home Loan

HDFC Home Loan is for individuals who need funds to buy a house or a
plot to construct a house.
Eligible Profiles Salaried and Self Employed

Individuals
Loan Amount Up to 90% of the property value
Interest Rate 8.00% onwards
Loan Tenure Up to 30 years
Processing Fee Up to 0.50% of the loan amount or Rs.
3,000 (whichever is higher) + GST
2. HDFC Reach Loans
HDFC Reach Loan is a customised loan product for salaried and self-
employed individuals having a minimum income of Rs. 10,000 p.m. and
Rs. 2 lakh p.a, respectively. The loan can be used to buy a new or existing
home or a plot. It can also be used for renovation, extension or
construction of both residential and non-residential premises.
Eligible Profiles Salaried and Self Employed Individuals


Processing Fee Up to 2% of the loan amount + GST
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3. HDFC Plot Loans
Owning a plot gives you the freedom to build your home as per your
desire. HDFC Plot Loan helps in buying a plot in resale or through a
direct allotment.
Interest Rate Women: 8.15% onwards

Others: 8.20% onwards

4. HDFC Rural Housing Loans
HDFC Rural Housing Loan is specially designed to help agriculturists,

planters, horticulturists, dairy farmers in buying an under construction or
a new or an existing residential property in rural and urban areas. Even
salaried/self-employed professionals can apply for it.
Interest Rate Women: 8.05% onwards

Others: 8.10% onwards
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Processing Fee Salaried/Self employed: Up to 0.50% of

the loan amount or Rs. 3,000 (whichever is
higher) + GST
Agriculturists/ Self-Employed Non-
Professionals: Up to 1.50% of the loan
amount or Rs. 4,500 (whichever is higher)
+ GST
5. HDFC Home Improvement Loans

HDFC Home Improvement Loans help customers give their home a
desired makeover to their homes without worrying about the shortage of
funds.
Loan Amount* New customers: Up to 90% of the

improvement estimate
Existing customers: Up to 100% of the
improvement estimate

6. HDFC Home Extension Loans

HDFC Extension Loan is appropriate for people who wish to extend or
add additional space to their homes. The loan scheme is available for both
new and existing customers.
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Loan Amount Up to 90% of the improvement estimate

7. HDFC Top Up Loans
HDFC Top Up Loan is available over and above your existing home loan.
The scheme helps in getting extra funds which can be used for various
personal and business purposes. Existing customers as well as new
customers, availing HDFC Home Loan Balance Transfer facility can also
apply for the loan.
Interest Rate Existing Customers: 8.70% onwards

New Customers: 8.00% onwards

8. HDFC Home Loan Balance Transfer
Customers who wish to lower their loan repayments can apply for HDFC
Balance Transfer Facility. By availing the Balance Transfer Facility,
customers can also get an additional Top Up Loan of up to Rs. 50 lakh.
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Loan Amount Up to Rs. 50 lakh

9. HDFC Home Loan for NRI/PIO
The loan scheme is for NRIs, PIOs and OCIs* to:
 purchase a flat, row house, bungalow from private developers in

approved projects in India
 purchase properties from Development Authorities such as DDA,
MHADA etc.
 construct on a freehold/leasehold plot or on a plot allotted by a
Development Authority in India
 purchase properties in an existing Co-operative Housing Society or
Apartment Owners’ Association or Development Authorities
settlements or privately built-up homes
HDFC NRI Home loan is offered at attractive interest rates

 The loan scheme allows customers to avail Home Loan Advisory
Services in the country where they live at present
 HDFC offers Property Search Advisory Services, which is the legal
and technical counselling to help customers make an informed
home buying decision
 HDFC offers valuable insights on developer projects, location,
documentation and offerings
 The loan is also available for customers employed in Merchant
Navy
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10. HDFC Home Loans under Pradhan Mantri Awas Yojana
PMAY Features & Benefits
• Upfront interest subsidy benefit on principal outstanding

• Aadhaar number(s) of the beneficiary family is mandatory for MIG
category
• Interest subsidy will be available for a maximum loan tenure of 20
years or the loan tenure availed by the borrower, whichever is
lower
• There is no cap on the loan amount or on the cost of the property
• The Net Present Value (NPV) of the interest subsidy will be
calculated at a discount rate of 9%
• The additional loan beyond the specified limits, if any, to be at
non-subsidised rate
Key Parameters of Credit Linked Subsidy
CLSS Scheme EWS/LIG MIG – I** MIG – II**

Type
Loan Purpose Purchase/Self Purchase/Sel Purchase/Sel

Construction/Extensio f f
n Construction Construction
Eligibility Between Rs. 3 lakh Between Rs. Between

Household/Famil and Rs 6 lakh 6 lakh and Rs.12 lakh
y Income Rs. 12 lakh and Rs.18
lakh
Carpet Area-Max 60 sq.m. 160 sq.m. 200 sq.m.
Subsidy Rs. 6 lakh Rs. 9 lakh Rs. 12 lakh

calculated on a
maximum loan
of
Interest Subsidy 6.50% 4.00% 3.00%
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Maximum Rs. 2.67 lakh Rs. 2.35 Rs. 2.30
Subsidy lakh lakh
Validity of 31st March 2022 31st March 31st March

scheme 2020 2020
Woman Mandatory* Not Not

Ownership Mandatory Mandatory
PMAY Eligibility Criteria

• The PMAY scheme is offered to families, comprising husband,
wife and unmarried children. (An adult earning member
irrespective of marital status can be treated as a separate household
in MIG category)
• The beneficiary family should not own a pucca house in the name
of any member of their family anywhere in India
• In case of married couples, either of the spouse or both together in
joint ownership will be eligible for a single subsidy
The beneficiary family should not have availed of central assistance
under any housing scheme from the Government of India or any benefit
under any scheme in PMAY.
SBI HOME LOAN SCHEMES
1. SBI Home Loan
SBI Regular Home Loan can be availed for multiple purposes, including the purchase
of ready built property, under-construction property or pre-owned homes,
construction of a house, extension of a house, repair and renovation. The interest rate
for this scheme is linked to repo rate. The details of the product are:
Borrower Type Resident Indians
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Loan Amount As per the applicant’s credit profile
Interest Rate Term Loan Maximin
For Salaried: 7.90% – 8.35% For Salaried: 8.45% – 8.80%
For Self Employed: 8.20% – For Self Employed: 8.60% –
8.50% 8.95%
Processing Fee 0.35% of the loan amount (Min. of Rs. 2,000 & Max. of Rs.
10,000)
Age Limit 18 – 70 years
2. SBI NRI Home Loan
SBI NRI Home Loan allows Non-Resident Indians (NRIs) to get financial support

when investing in properties.
Borrower Type Non-Resident Indians (NRIs) or Persons of

Indian Origin (PIOs)
Interest Rate Varies from one case to another
Processing Fee 0.35% of the loan amount (Min. of Rs. 2,000 &
Max. of Rs. 10,000)
3. SBI Flexipay Home Loan
SBI Flexipay Home Loan offers the option to pay the interest amount during the
moratorium (pre-EMI) period, and thereafter, pay moderated EMIs. In the subsequent
years, the monthly instalments increase under the step-up EMI plan. This home loan
variant is quite useful for young earners.

Employment Type Salaried and Self Employed Professionals
Max. of Rs. 10,000)
Age Limit 21– 45 years (to apply for a loan) & 70 years (for
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loan repayment)
4. SBI Privilege Home Loan
SBI has launched SBI Privilege Home Loan exclusively for government employees.

Employment Type Employees of Central & State Government,
which includes PSBs, PSUs of Central
Government & other individuals with
pensionable service
Processing Fee* Nil
5. SBI Shaurya Home Loan
SBI Shaurya Home Loan scheme is dedicated to Army and other Indian Defence
personnel. The scheme, available at an attractive interest rate, comes with other
benefits, such as zero processing fees, zero prepayment penalty, concession for
women borrowers, interest concession in case of Check-Off, etc.

Employment Type Defence personnel
Processing Fee Nil
6. SBI Realty Home Loan
Customers who want to purchase a plot for the construction of a house can avail SBI
Realty Home Loan or SBI plot loan. To avail the benefits of this loan scheme,
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customers must ensure that the house construction starts within 5 years from the date
of loan sanction. Under this loan scheme, customers can also avail another Home
Loan for the construction of the house.

Employment Type Salaried and Non-Salaried Individuals
Loan Amount Up to Rs. 15 crore
Interest Rate Up to Rs. 30 lakhs: 8.90%
Above Rs 30 lakh to Rs 75 lakh: 9.00%
Above Rs 75 lakh: 9.10%
Max. of Rs. 10,000)
7. SBI Home Top Up Loan
Customers who are availing SBI home loans and require more funding can opt for
Home Top-Up Loans.
Borrower Type Resident Indians & NRIs

Loan Amount Depends on the borrower’s credit profile
Interest Rate Up to Rs. 20 lakh – 8.60%
Above Rs. 20 lakh & up to Rs. 5 crore – 8.80%
– 9.45%
Above Rs. 5 crore – 10.65%
Max. of Rs. 10,000)
8. Bridge Home Loan
Many times, the gap between the sale of the existing property and the purchase of the
new property can pose a problem of short-term liquidity issue. To mitigate this
48 | P a g e
shortage of funds, you can opt for bridge loans. Check SBI Bridge Home Loan
details:

Loan Amount Rs. 20 lakhs to Rs. 2 crore
Interest Rate For 1st Year: 10.35% p.a.
For 2nd Year: 11.60% p.a.
Max. of Rs. 10,000)
Age Limit 18–70 years
9. SBI Smart Home Top-Up Loan
The SBI Smart Home Top-Up Loan is a general-purpose loan. Customers can get it
from the nearest SBI branch/RACPC within minutes, without furnishing any
document. However, to avail the benefits of this loan, neither Home Top-Up nor Insta
Home Top Up Loan must be active. Also, the applicant must have a satisfactory
repayment track record of 1 year or more after the completion of the moratorium.
Borrower Type Resident Indians & NRI

Loan Amount Up to Rs. 5 lakh
Credit Score Preferably 750 or above
Interest Rate Salaried (term loan): 9.15%
Salaried (overdraft): 9.65%
Non-Salaried (term loan): 9.65%
Non-Salaried (overdraft): 10.15%
Processing Fee Rs. 2,000 + GST
10. SBI Insta Home Top-Up Loan
This loan facility is available to all pre-selected SBI home loan customers at the
bank’s internet banking platform. This loan is processed and sanctioned without any
manual intervention. Be it the selection of customers, processing of their loan request,
disbursement of the loan or setting the standard instructions for loan repayment,
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everything is performed by the system automatically. To avail the loan, the existing
home loan customers must have the minimum home loan limit of Rs. 20 lakh with
INB facility and a satisfactory track record of 3 years or more. Also, no other top-up
loan should be active at the time of loan application.
Borrower Type Resident Indians & NRI

Loan Amount Rs. 1 lakh to Rs. 5 lakh
Credit Score Preferably 750 or above
Interest Rate 9.30%, (regardless of risk grades, gender
& occupation)
Loan Tenure Min residual tenure of home loan of 5 years
Processing Fee Rs. 2,000 + GST
11. SBI Corporate Home Loan
This loan scheme is for both Public and Private Limited Corporate Entities. They can
avail this loan to fund the construction/acquisition of Residential Units. The loan must
be availed in the name of the Company for use by their Directors/Promoters and
Employees. Under the scheme, the home loan transfer facility is also available.
Borrower Type Public and Pvt. Ltd. Corporate Entities

Max. of Rs. 10 lakh)
12. SBI Home Loan to Non-Salaried
SBI offers home loan to non-salaried persons. Non-Salaried Individuals can avail it
for the purpose of construction/acquisition/repair/renovation of a residential
house/flat. Under the scheme, the bank also offers home loan transfer facility.
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Employment Type Non-Salaried Individuals
Loan Amount Rs. 50,000 to Rs. 50 crore
Interest Rate As per the applicant’s credit profile
Max. of Rs. 10,000)
Age Limit 18 years (minimum)
13. SBI Tribal Plus
Designed especially for hilly/tribal areas, SBI Tribal Plus home loan can be availed
for purchase or construction of a new house/flat (without mortgage of land), purchase
of an existing (old) house/flat which is not more than 10 years old, and repair
/renovation/extension of an existing house or flat.

Loan Amount Up to Rs. 10 lakhs
Max. of Rs. 10,000)
14. SBI Earnest Money Deposit (EMD)
Customers who are looking for earnest money for the booking of residential
plots/built-up houses by the Government Housing agencies like Urban Development
Authorities like PUDA, HUDA and Housing Boards can avail this loan scheme. To
apply for the loan scheme, there is no minimum income criterion. In case of
successful allotment, customers need to repay the loan in lump-sum.
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Borrower Type Resident Indian
Loan Amount CSP/DSP Account Holders: Up to Rs. 15 lakh
Others: Up to Rs.10 lakh
Loan Tenure Up to 1 year
Processing Fee 0.50% of the loan amount, minimum Rs. 1,000
Age Limit At least 21 years
15. SBI CRE (Commercial Real Estate) Home Loan
CRE Home Loans are perfect for all those who own two houses or more and require
funding to purchase the next house. Under this loan scheme, the maximum number of
houses/flats/residential plots is restricted to three. Also, the maximum number of
home loans in the name of an individual (including the existing & proposed loan) is
five.
Borrower Type Resident Indian

Processing Fee 0.35% of the loan amount (Min. Rs. 5,000)
Other SBI Home Loan Schemes
• SBI Green Home Loans: To contribute to the fight against adverse climate
change, SBI adopted a Green Banking Policy. And for this purpose, one of the
initiatives SBI has taken is to incentivize borrowers who go in for Green
Projects, i.e. projects which reduce Carbon Emissions and promote Renewable
Energy.
• Pre-EMI Interest by Builders Scheme: In this scheme, the builder agrees to

service full or part of the Pre-EMI interest (during the moratorium period) as
an incentive to homebuyers to generate maximum sales. The scheme is
restricted to the approved projects under our Builder Tie Up arrangement,
subject to fulfilment of the bank’s guidelines.
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• SBI Suraksha: SBI offers life insurance linked to the housing loan. The
premium of RinN Raksha is funded by SBI and the repayment is spread over
the entire tenor of the loan in EMIs. This facility will be available to new
home loan accounts and to an existing home loan in case the customer now
opts to avail SBI Life cover.
2.8 HDFC Home Loan Document Required
List of HDFC Home Loan Documents for Salaried List of HDFC Home Loan
Individuals Documents for Self Employed
Individuals
• Duly filled and signed HDFC Home Loan • Duly filled and signed
Application Form. HDFC Home Loan
• KYC Documents – A copy of Proof of Application Form.
Identity and Proof of Residence such as • KYC Documents – A copy
Aadhaar, PAN, Passport, Voter ID, of Proof of Identity and
Driving License, etc. Proof of Residence such as
• Proof of income – A copy of the following Aadhaar, PAN, Passport,
documents: Voter ID, Driving License,
• Last 3 months’ Salary Slips etc.
• Proof of income – A copy
• Last 6 months’ Bank Statements, of the following documents:
showing salary credits
• CA-attested Income
• Latest Form-16 and IT returns Tax Returns (ITR)
• Property related documents – A copy of the along with the
following documents: calculation of
• For New Homes: income for the last 3
Assessment Years.
• A copy of the Allotment
Letter / Buyer Agreement • CA-attested
Balance Sheet and
• Receipt/(s) of payment/(s) Profit & Loss
made to the developer Account Statements
• For Resale Homes: of the last 3 years
• Title Deeds including the along with
previous chain of the Annexures /
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property documents Schedules.
• Receipt/(s) of initial • Last 6 months’
payment/(s) made to the Current Account
seller Statements of the
• A copy of the agreement business entity and
to sell (if already Savings Account
executed) Statements of the
individual
• For Construction:
• Property related
• Title Deeds of the Plot documents – A copy of the
• Proof of no following documents:
encumbrances on the • For New Homes:
property • A copy of the
• A copy of the plans, Allotment Letter /
approved by the Local Buyer Agreement
Authorities • Receipt/(s) of
• Construction estimate by payment/(s) made to
an Architect / Civil the developer
engineer • For Resale Homes:
• Other related documents – A copy • Title Deeds
or original of the following including the
documents: previous chain of
• Own Contribution Proof the property
documents
• Employment
Contract/Appointment • Receipt/(s) of initial
Letter if the current payment/(s) made to
employment is less than a the seller
year old • A copy of the
• Last 6 months’ Bank agreement to sell (if
Statements showing the already executed)
repayment of current • For Construction:
financial liabilities
• Title Deeds of the
• Passport size photo of the Plot
applicant and co-
applicant (if any) affixed • Proof of no
on the HDFC home loan encumbrances on
application form and the property
signed by the applicant • A copy of the plans,
across. approved by the
• Cheque to pay processing Local Authorities
fee favoring HDFC Ltd. • Construction
estimate by an
Architect / Civil
engineer
• Other related documents
– A copy or original of the
following documents:
• Own Contribution
Proof
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• Business Profile
• Latest Form 26 AS
• List of Directors
and Shareholders
with their individual
shareholding
certified by a CA /
CS in case of the
business entity
being a company
• Memorandum and
Articles of
Association of the
Company
• Partnership deed if
the business is in
partnership
• Details of current
loans of the
individual and/or
the business entity
• Passport size photo
of the applicant and
co-applicant (if any)
affixed on the
HDFC home loan
application form
and signed by the
applicant across
• Cheque to pay
processing fee
favoring HDFC Ltd
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Chapter 3
3.1. Review Of Literature:

 Sangwan and Bhan (2012) this study can find out the satisfaction level of
customers and problems faced by them in obtaining home loans. For this
purpose, we have taken four commercial Banks in Chandigarh city namely
H.D.F.C. Bank, Punjab National Bank(P.N.B.), Union Bank of India and
Industrial Credit and Infrastructure Corporation of India(I.C.I.C.I). Bank. It
includes two public sector banks and two private sector banks. In the research
methodology a sample size of 200 respondents has been taken through random
sampling. They have taken both primary data as well as secondary data, in the
primary data questionnaire has been used to check the satisfaction level of
customers about home loans. In the secondary data, the annual reports of RBI,
commercial banks and broachers of these banks have been studied. Finally the
whole research was carried out in a systematic way to reach at exact results.
The whole research and findings were based on the objectives. Some of the
limitations faced in collecting the data were Lack of time, lack of data, non-
response, reluctant attitude and illiteracy of respondents, which posed
problems in carrying out the research.
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 Gupta and Agarwal (2013) this is a comparative study in Meerut city, India,
to evaluate service quality and resultant customer satisfaction in private banks
as compare to public sector ones.
 Rao (2013) this study discussed about the perception and problems of home
loan takers in Andhra Pradesh. The author has focused on research by taking
into account H.D.F.C. and S.B.I. bank. The paper discussed about the Housing
Policy frame work, trends and progress in Housing Finance, the operational
performance of H.D.F.C. and S.B.I. with regard to providing housing finance
to individuals, perception and problems of home loan takers in the State of
Andhra Pradesh. The author concluded by stating that the Housing Finance in
India faced a number of set-back in decades but the designing of a shelter
policy, the organization of the housing finance market, the introduction of
fiscal incentives have bought about a number of changes in the housing
finance. The services and product innovations are the key tools for success.
 Thakur G. (2014) this study concluded that people prefer H.D.F.C. bank
more than S.B.I. bank for home loan. As private banks are coming daily in our
country still, mostly people Vol-3 Issue-4 2017 IJARIIE-ISSN (O)-2395-4396
6205 www.ijariie.com 1790 prefer government banks for loan especially older
persons are more dependent on government banks. It is true that younger
population preference is changing and they prefer more private banks because
of services and facilities provided by private banks. The interest rate is lower
in public (S.B.I.) bank in comparison with private (H.D.F.C.) bank but
services are not up to the mark.
 Kumara swamy (2014) this study discussed about the importance of housing
finance and the institutions providing housing finance. A detailed discussion
of the marketing strategies adopted by financing institutions have been
discussed by taking into account the loan criteria eligibility, loan amount,
interest rate, security, loan tenure, margin and processing fee. Finally the
paper highlights the performance of the housing sector, major findings and
suggestions to improve the effective marketing of housing finance for both
57 | P a g e
public and private sector banks.
 Sharma and Garg (2014) this study concluded that the public sector banks are
very popular among the customer these days because the interest rate is lower
in State Bank of India as compare to H.D.F.C. bank and the trust level that
customer have with these banks is very high in comparison to H.D.F.C. bank.
The public sector bank also provide better facilities and services to the
customer and give all the information to the customer time to time through
Short Message Service(SMS) and internet banking. The information provided
by the private banks is sometimes fake and they tried to cheat customer for
their own benefits.
 Gupta and Sinha (2015) this examining on the respondent regarding the
purchase of home loan and low rate of interest, easy accessibility, status/
reputation of the institution and scheme offered by the company are the major
factor for selection of the housing finance institution comparative study on
Factor Affecting consumer’s Buying Behavior towards Home Loan (with
special reference to S.B.I. and L.I.C.H.F.L.)” and found that fixed rate of
interest is most preferred option by the customers.
 Chithra and Muthurani (2015) this study conducted on customer perception

towards home loan in H.D.F.C are done Chennai with the 85 sample size and
simple random sampling. The study shows that H.D.F.C. bank home loans has
product portfolio for satisfying different consumer needs. The bank has got
goodwill and this can be used for promoting its services. If new promotional
activity and services introduced, it will help very much to organization to
increase the business.
 Murugan and Jansirani (2017) a study carried out in Chennai to Customer

perception towards home loan by selecting the 500 customer on randomly
basis. This study made an attempt to evaluate in depth the performance and
operational problems faced by the banking sector in extending finance to the
housing sector and based on findings; identify the areas of concerns and
58 | P a g e
strategic interventions required.
Chapter 4
4.1. DATA INTERPRETATION AND PRESENTATION
DATA ANALYS
COMPARATIVE STUDY
OF
SBI
AND
HDFC BANK
1. COMPARATIVE STUDY OF AGE GROUP WITH GENDER OF

CUSTOMERS LINKING WITH SBI AND HDFC BANK
(a) AGE GROUP
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AGE SBI HDFC
LESS 5 4
THAN 25
25-35 8 12
35-45 6 7
45-55 12 9
55 & 4 3
ABOVE
NO.OF PERSONS
14
12
10
0
LESS THAN 25 25-35 35-45 45-55 55 & ABOVE
SBI HDFC
INTERPRETATION:
According to survey, when compare to age group of SBI and HDFC bank. In SBI
bank the more persons 12 belong to 45-55 and in HDFC bank more 12 person belong
to 25-35 years.
(B) GENDER
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GENDER SBI HDFC
Male 28 27
female 7 8
Chart Title
30
25
20
15
10
0
SBI
HDFC
Male female
INTERPRETATION:
According to survey, when we compare to gender of SBI and HDFC bank, in SBI
bank more 28 customers belong to male and 7 female customers but in HDFC 27
customers belong to male and 8 customer belong to female
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2. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND
HDFC BANK REGARDING THEIR OCCUPATION
OCCUPATION SBI HDFC
SEVICE 15 12
BUSINESSMAN 6 13
PROFESSIONAL 3 5
STUDENT 8 3
HOUSEWIFE 3 2
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OCCUPATION
16
14
12
10
0
SERVICE BUSINESSMAN PROFESSIONAL STUDENT HOUSEWIFE
HDFC SBI
INTERPRETATION:
According to survey when compare to occupation of SBI and HDFC banks. In SBI
Bank most of customer occupation is service but in HDFC bank most of customers
occupation is businessman
3. COMPARATIVE STUDY OF THE CUSTOMERS OF SBI AND
HDFC BANK REGARDING THEIR INCOME
INCOME HDFC
SBI
NIL 0 2
LESS THAN 50000 8 4
50000-150000 7 9
150000-300000 10 8
300000-500000 6 9
500000- ABOVE 4 3
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INCOME
10
0
NIL LESS THAN 50000- 150000- 300000- 500000-
50000 150000 300000 500000 ABOVE
HDFC SBI
INTERPRETATION:
According to survey, compare to Income of SBI and HDFC banks. In SBI bank 10
customer income lie 150000-300000 and In HDFC bank 9 customer income between
50000-150000 and 300000-500000.
4. COMPARATIVE STUDY OF MOST IMPORTANT REASON FOR
CHOOSING THE PARTICULAR BANK
FACTORS SBI HDFC

I have a traditional bank 12 3
account with the same bank
The brand name of the 4 6

bank
The excellent service 5 12
offered by this bank
ATM service 7 5
Net banking facility 3 2
Location advantage 4 7
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12
10
0
I have a The brand The excellent ATM service Net banking Location
traditional name of the service offered facility advantage
bank account bank by this bank
with the same
bank
SBI HDFC
INTERPRETATION:
According to survey, when I compare to most reason to chosen a particular bank. In

SBI most of customer said the reason of chosen to traditional bank account and in
HDFC most of the customer said reason to chosen bank for excellent service offered
by this bank.
6. COMPARATIVE STUDY OF THE PERIOD OF CUSTOMERS DEALING
WITH SBI AND HDFC BANK
YEARS SBI HDFC
LESS THAN 1 YEAR 7 7
1 to 2 YEARS 12 9
3 to 5 YEARS 7 13
MORE THAN 5 YEARS 9 6
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YEARS OF DEALING WITH HDFC
14
12
10
8
6
4
2
0
LESS THAN 1 YEAR
1 to 2 YEARS
3 to 5 YEARS
MORE THAN 5
YEARS
HDFC SBI
INTERPRETATION:
According to survey, when I compare to time period of customers dealing with SBI
and HDFC bank. IN SBI bank Most of customers dealing with bank 1 to 2 years and
IN HDFC bank 3 to 5 years.
7. COMPARATIVE STUDY OF REASON THAT MAKE CUSTOMER TO
TYPICALLY VISITING THE BANK BRANCH
REASON HDFC SBI
To make a deposit 17 14
To get advice for 3 2

investment options
To inquire about a 5 7
balance
To withdraw cash 10 12
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18
16
14
12
10
0
To make a deposit To get advice for To inquire about a To withdraw cash
investment options balance
HDFC SBI
INTERPRETATION:
According to survey, when I compare reason that make customer to typically visit
bank branch. In SBI bank most of the customer visit the branch to make a deposit and
in HDFC bank customer also visit to make a deposit.
8. COMPARATIVE STUDY OF MOST SATISFTING FACILITY OFFERED
BY THEM
FACILITY HDFC SBI

ATM 10 13
Loan 4 7
Early cheque clearance 8 2
Preparation of drafts 2 3
Interest package 3 3
Net banking 5 3
Phone banking 3 4
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14
12
10
0
ATM Loan Early Preparation Interest Net Phone
cheque of drafts package banking banking
clearance
HDFC SBI
INTERPRETATION:
According to survey, I compare to most satisfying facility Offered by them. In SBI

bank most of the customer satisfied the ATM facilities and li HDFC customer also
satisfied the ATM facilities.
9. COMPARATIVE STUDY OF TO SHIFT TO ANOTHER BANK IF THEY

ARE PROVIDED WITH BETTER SERVICE
CHANGE HDFC SBI
YES 9 6
NO 26 29
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Chart Title
30
25
20
15
10
0
YES NO
HDFC SBI
INTERPRETATION:
According to survey, when I compare customers want to shift to another bank if they
are provided with better service. In SBI bank 6 said yes and 29 said no but in HDFC
bank 9 said yes 26 said no.
10. OVERALL SATISFACTION OF THE CUSTOMERS WITH THE

PERFORMANCE OF SBI
SATISFACTION HDFC SBI

EXCELLENT 7 8
GOOD 12 6
SATISFACTORY 8 18
AVERAGE 5 3
BELOW AVERAGE 3 0
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SATISFACTION LEVEL
18
16
14
12
10
8
6
4
2
0
EXCELLENT GOOD SATISFACTORY AVERAGE BELOW AVERAGE
HDFC SBI
INTERPRETATION:
According to survey, when I compare to regarding the overall satisfaction of the

Customers. In SBI most of customer said customers satisfactory and in HDFC bank
most of the customers said good.
4.2 Testing of Hypothesis:
From above analysis of collected data, hypothesis are interpreted as follows:
Null (H0) : HDFC BANK IS BETTER THAN SBI BANK TO PROVIDE

GOODS AND SERVICE, FACILITY, BENEFIT FOR CUSTOMER,IS
REJECTED.
The study shows HDFC bank is better than SBI bank to provide goods and service,
facility benefit for customer is negative impact.
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Alternative(H1) : HDFC BANK AND SBI BANK THESE BOTH BANK ARE BETTER IN
TO PROVIDE GOODS AND SERVICE ,FACILITY, BENEFIT FOR CUSTOMER, IS
ACCEPTED.
The study shows HDFC bank and SBI bank these both bank are better in to provide
goods and service ,facility, benefit for customer is positive impact.
CHAPTER 5
5. CONCLUSION AND SUGGESION
5.1 CONCLUSION
After conducting market research for comparative study of customer's satisfaction

towards HDFC bank and state bank of India we came to know different needs of
consumers, their valuable suggestions, and responses to the different questions. With
this information we can conclude that Customer satisfaction level of most respondents
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is higher for SBI and HDFC banks which is provided by survey. Higher satisfaction
level of SBI and HDFC banks. SBI and HDFC provides good service facilities benefit
for the customers like ATM service Net banking facility Location advantage etc.
5.2 SUGGESTIONS
1. Both the customers from SBI and HDFC bank have suggested that the bank
should open one of its branch in industrial area like focal point.
2 One of the most common suggestion was to lower down the minimum
balance
required in the savings account.
3. Staff should be more co-operative to the customers.
4. Customers were not fully aware of the services and the various charges
which they have to pay. Therefore Banks should try to give some more
information to its existing customers.
5.3 REFERENCE
 https://www.hdfcbank.com/personal/about-us/news-room/media-kit/hdfc-bank-
profile
 https://www.icicibank.com/aboutus/about-us.page?
 https://sbi.co.in/web/about-us/about-us
 https://www.axisbank.com/about-us/corporate-profile
 https://www.moneycontrol.com/financials/hdfcbank/consolidated-cash-
flow/HDF01#HDF01
 https://www.business-standard.com/article/pf/40-years-ago-and-now-home-loan-a-
tale-of-three-institutions-114091400747_1.html
 https://www.proptiger.com/guide/post/indias-home-loan-growth-story
72 | P a g e
 https://www.rediff.com/getahead/report/money-7-home-loan-problems-
borrowers-face-in-india/20150303.htm
QUESTIONNAIRE
CUSTOMER PREFERENCE TOWARDS SBI AND HDFC BANK
1. Name
2.Gender
 Male
 Female
3. Age
 Less than 25
73 | P a g e
 25- 35
 35-45
 45-55
 55- above
4.Occupation
 Service
 Business
 Professional
 Student
 Housewife
5.Income
 Nil
 LESS THAN 50000
 50000-150000
 150000-300000
 300000-500000
 500000- ABOVE
6.Bank you are dealing with

 HDFC
 SBI
7.What was the single most important reason that you chose this particular Bank
 I have a traditional bank account with the same bank
 The brand name of the bank
 The excellent service offered by this bank
 ATM service
 Net banking facility
 Location advantage
 Any other please specify
8. Since how many years you are dealing with this Bank
 Less than 1 year
74 | P a g e
 1 to 2 years
 to 5 years
 More than 5 years
9.What is the main reason that you typically visit your bank branch (please choose the
single most important reason)
 To make a deposit
 To get advice for investment options
 To inquire about a balance
 To withdraw cash
 Any other please
 specify
10.Which facility satisfies you most

 ATM
 Loan
 Early cheque clearance
 Interest package Net banking
 Interest package
 Net banking
 Phone banking
 Preparation of drafts
11. If you are provided with better services by optional bank. Would you like to move
to other bank
 Yes
 No
75 | P a g e
12.How would you rank the overall service
 Excellent
 Satisfactory
 Good
 Average
 Below Average
76 | P a g e

Roll No. 46 (Comparitve Study of Home Loan HDFC and SBI Bank)

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Roll No. 46 (Comparitve Study of Home Loan HDFC and SBI Bank)

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A PROJECT REPORT

Name and signature of

I the undersigned Miss VAIBHAVI NITESH KEDARE. here by,

I would like to acknowledge the following as being idealistic channels and

I take this opportunity to thank the University of Mumbai for giving me

I would like to thank my principal, I/c principal Dr. Vasant D Barhate

I would also like to express my sincere gratitude toward my project guide

I would like to thank my college Library, for having provided various

Sr. No. Title of Chapter Pa

4.. DATA Interpretation and Presentation

5 Conclusion and Suggestion

1.1 INTRODUCTION TO HOME LOAN

In finance, a loan is the lending of money by one or more individuals,

1.2 HISTORY OF HOME LOAN

An ICICI old-timer recalls how Chairman K V Kamath walked out of a meeting to

1.4 ADVANTAGES AND DISADVANTAGES OF HOME LOAN

 Advantages of home loan

Unlike other loans where lenders charge prepayment penalties on payment

3. Balance Transfer Facility: –

4. High repayment Tenure:-

 Disadvantages of the home loan

When you’re approved for a home loan, you’re making a decades-long

2. They Carry some Risks

3. Loss of HRA Tax Benefit

HRA stands for House Rent Allowance. HRA is an amount paid by

4. Presence of Opportunity Lost

1.5 TYPE OF HOME LOANS

5) Home Improvement Loans:

6) Home Conversion Loans:

7) Balance Transfer Home Loans:

8) NRI Home Loans:

10) Stamp Duty Loans:

f) Stamp duty and registration charges:-

g) Personal Guarantee from Charges :-

h) Cheque Bounce Charges :-

I) Delayed payment charges :-

(j) Additional charges :-

(k) Incidental charge :-

Home Loan Eligibility Criteria

Indian Residents, Non-Resident Indians (NRIs)

Credit Score 550 – 900

Business Continuity At least 3 years of business continuity is required

Atleast Rs. 25,000 per month, may vary across

 Any salaried or self-employed individual can apply for home loan

1.8 Practical problem faced by customers in home loans

 Processing fee not refunded

A verbal statement by bank authorities won't be of any use unless it is properly

 Sanctioning of less amount

 Discrepancy in interest rate among existing and new home loan

 Discrepancy in the valuation of the property

 Excess burden of down payment

 Title deeds and NOC documentation problems

1.9 Important Measures to Take Care Before Applying for A Home

 Optimum Down payment:

 Check associated fee and charges with the loan:

 Opt for the best interest rate:

 Check your eligibility criteria:

 Insure your loan amount:

 Legality of the property:

 Be smart while paying EMIs:

1.10 IMPORTANT POINTERS IN HOME LOANS:

 Increase the down payment:

 Enhance your loan tenure: