A

PROJECT REPORT
ON

“An Analytical study On Home Loans with special

reference ICICI Bank LTD (Katol Branch)”

(Submitted in partial fulfillment of the requirement for the award of

degree of Master of Business Administration)

To

RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR

Submitted By:
MR. VAIBHAV LILADHARRAO KUBDE
M.B.A. Final Year

Under the guidance of:

PROF. HARSHIT BHURSE SIR

RANIBAI AGNIHOTRI COLLEGE INSTITUTE OF COMPUTER

SCIENCE AND INSTITUTE OF TECHNOLOGY.
2020-21

1
 CERTIFICATE

This is to certify that the project report entitled “An Analytical study

On Home Loans with special reference ICICI Bank LTD (Katol

Branch)” submitted Mr.Vaibhav Lilaldhar Kubde a partial fulfilment for

the requirement master of business administration examination of the

Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur for the academic

session 2020-21 is an original carried out under the supervision and

guidance of Prof.Harshit Bhurse Sir and has undergone the requisite

duration as prescribe by the Rashtrasant Tukdoji Maharaj Nagpur

University, Nagpur for the project work.

Project Guide Director

Prof.Harshit Bhurse Sir

Date :
Place : Wardha

2
 DECLARATION

I hereby declare that the project work entitled “An Analytical study On Home

Loans with special reference ICICI Bank LTD (Katol Branch)” Submitted to the

RTM Nagpur University, Nagpur , Is a record of an original work done by me under the

guidance PROF.HARSHIT BHURSE Ranibai Agnihotri Institute of Computer Science

and Information Technology, wardha. This Project work is submitted to the RTM

Nagpur University, Nagpur in the Partial fulfillment of requirement of the degree of

Master of Business Administration. The results embodied in this project have not been

submitted by me to any other University or institute for the award of any degree.

Date : MR. VAIBHAV L. KUBDE

Place :Wardha

3
 ACKNOWLEDGEMENT

I would like to express my heart full thanks to my supervisor

PROF. HARSHIT BHURSE for his guidance throughout my project work.

I am very thankful to the entire team of KATOL City Branch Bank

their Competition.

I express my gratitude to DR.SMITA KALOKAR Head Department of

management studies at Ranibai Agnihotri Institute of Computer Science
and IT, wardha for providing me opportunity to pursue MBA program.

I am also express sincere thanks to all the faculty members who have
directly or indirectly helped me in preparation of this project report.

I thank this opportunity to take all those who have been of help to me
in the completion of this project. Finally I thank to my friends for their
continuous support and help in the completion of my project

Date : MR. VAIBHAV L. KUBDE

Place :Wardha

4
 INDEX

PAGE
SR.NO CHAPTER
NO
EXECUTIVE SUMMERY

1 I. INTRODUDUCTION OF BANK 6-12

II. OBJECTIVES AND SCOPE
III. HYPOTHESIS
2 REVIEW OF LITERATURE 13-14

COMPANY PROFILE
3 15-18
I. INDUSTRY PROFILE

THEORATICAL BACKGROUND

4 I. PROCESS OF ISSUING 19-26

HOUSING LOAN
II. DOCUMENTS OF HOUSING LOAN

5 RESEARCH AND METHODOLOGY 27-28

DATA ANALYSIS AND

6 29-37
INTERPRETATION

7 FINDINGS 38

RECOMMENDATION AND
8 39
SUGGESTIONS

9 LIMITATIONS 40

10 CONCLUSION 41
11 BIBLIOGRAPHY 42
12 ANNEXURE 43-44

5
6
 CHAPTER 1
EXECUTIVE SUMMERY

Home is a dream of person that shows the quality of efforts. Scarifies luxuries and above
all gathering funds little by little to affords one's dream

Home is one of the things that everyone one wants to own. Home is a shelter to person
where he rest and feel comfortable many bank providing home loan whether commercial
bank or financial institutions to the people who want to have a home

ICICI bank Ltd, have been serving the people for around fifteen years and providing
various housing loan according to their varied needs at attractive & reasonable interest
rates.

Many bank are providing home loan at cheapest rate to attract consumer towards them.
The more customer friendly attitude of these bank, currently offer to consumers cheapest
loan over homes.

With the RBI reducing bank rate, the home loan market rate nose-diving by 50 basis
points. Bank of India and SBI 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 Dream of long ago-

ICICI bank also provides with home improvement loan for internal and external repairs
and other structural improvement like painting, waterproofing, plumbing, electric work,
tilling and flooring, grills and aluminum windows.

We know three basic needs of human being i.e. Food, clothing & shelter. For all these
need we want money? It involves large investment. Everyone does not have that much
money to invest at once. Borrowing and lending is the important functions of the every
developing economy. It is in existence right from ancient time. Previously in barter era

7
the goods are exchange against good now the scenario hast changed to fulfill the need
of human being the old concept which emerge as a new is nothing but "loan ".

The banking industry has been undergoing some fundamental changes it approach to
banking. There has been a perceptible shift towards customer relationship management
(CRM) mainly arising out of the elements of intensive competition infused into the industry
by the arrival players. With the free economy reform government permitted private players
to inter in banking business along with existing nationalized banks.

In 2002 government allowed foreign bank to enter in Indian market

The concept of retail banking introduced with the increase in no banks, private players
introduce especially this concept. The banks are segmenting their portfolio into different
segments like personal banking retail banking, corporate banking, agri banking and
investment banking. In retail banking, bank are concentrating on SME (small and medium
entrepreneurs) and Individual finance like vehicle finance

, housing finance etc. As large no. of customer can be tap with diversification of risk as it
involves lower risk than corporate banking.

All bank are increasing their exposure to this area.

CREDIT POLICY
"Credit has done a thousand times more to enrich mankind than all the gold mines in the
world.it has exalted labor, stimulated manufacture, and pushed commerce over every
sea".

Why bank credit?

Credit provided by bank is an important driver of national economy. It older days when
commercial bank had not taken the present shape, individuals or families traditionally
involved in money lending as source of finance. Present day's economy is different from

8
old economy. Due to industrialization, need for finance charge drastically. With change
in populations as well as industrialization demand and supply increased more over the
sources of supply no longer confine to the area where the demand exists with the
improvement in transport and communication system the demand can be easily met by
supplies made from sources located on fair flung areas today the total output of the our
industrial sectors is very large the finance requirements of which cannot be met by the
traditional means of finance hence the role of modern private bank as credit provides to
the economy begins at this point.

9
10
 INTRODUCTION TO HOME LOAN

Home loan / housing loans which is sanctioned to buy or purchase or to own a house or
residence is a known as a home loan / Housing loan. Any qualified individual can avail
housing loan subject to the purpose of owing a like shop, office, warehouse or factory etc.
Home loan / Housing loan is a type of secured loan as the house or residence purchased
is mortgaged to the lending institution till the full and final payment of the loan amount.
This is a long term loan and the home loan repayment period could be anywhere between
5 years to 30 years. The rate of interest generally varies within the range of 8% to 14%
depending upon institution to institution. Floating interest and fixed interest are the
available interest calculation option to the borrower of Home loan/ Housing loan in India.
The government policies also impact the rate of interest on home loan. Generally it is a
practice of lending institutions to grant up to 90% of the cost of the premises where the
rest 10% of the cost of the premises are involved by the borrower.In certain cases the
lending institute may sanction 100% home loan thought it is at sole discretion of said
institute.

A borrower may buy its prime residence by availing home loan or he or she may buy
excess residential property. Borrower repays this loan in form of EMI – Equated monthly
installments. A borrower can also avail the facility of premature settlement of the loan 9or
transfer of housing loan to other residential premises.

11
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.

12
13
 OBJECTIVES AND SCOPES

OBJECTIVES

1. To know the home loan product and services available at ICICI Bank Ltd
2. To study the documentation process required for applying for bank loan.
3. To know the loan sanctioning process and disbursement of loan at ICICI Bank
Ltd.
4. To evaluate the home loan schemes of ICICI Bank Ltd

SCOPES

The Indian housing finance industry has grown up by leaps and bound in few years.
Total home loans disbursement by banks has risen which witness phenomenal growth
from last 5 years. There are greater numbers borrowers of home loans. So by this study
can find out satisfaction level of customers and problems faced by them in obtaining
home.
 From the mass banking of yester years Indian banks have travelled a
long distance in the past economic reforms era. Now they are profitable,
strong and stable with impressive performance indices. They have
become tech savvy and competitive as well.
 The winning strategies for them could be clear customer segmentation
and product offering focus on cost efficiencies and entrepreneurialability
to face stiff competition perhaps bank should not charged high interest
rates but manage cost and build up quality credit.
 In its recent policy statements it explains that it is committed to maintain
adequate liquidity in the market with the preferences for soft interest
rates. The loans are important functions that are providing as fund based
loans and non funds based loans. In last years before the globalization
the only traditional institution providing finance.

14
15
HYPOTHESIS

1. ICICI bank is having better home loan policy rather than other
players in Home Loan Industry.

2. ICICI bank offer better documentation policy for home loan.

3. There is positive relationship between Home Loan policy of ICICI

Bank and customer satisfaction with reference to Home Loan.

16
17
 CHAPTER 2
REVIEW OF LITERATURE

Several studies have been done by various researches in the context of home loan.

The details of review are below: Berstain David (2009) examined in the study taken from
2001 to 2008 that is the period there is increasing use of home loan

Vandell, Kerry D(2006) analysis the sharp rise and then Suddenly drop down home prices
from the period 1998-2008 changes in prices are for the reasons as such economic
fundamentals, the problem was not subprime lending per se, but the dramatic reduction
and subsequent increases in interest rate during the early mid-2000, the housing loan
boom was concentrated in those market with significant supply-side restriction, which tend
to be more price-volatile. The problem was not in the excess supply of credit in aggregate
or the increase

La courr Macheal (2007) analyses in his study the factor that affect the increase in the
level of annual percentage rate spread reporting during 2005 over 2004. The three main
factors are

1. Changes in lender business practices

2. Changes in the risk profile of borrowers

3. Changes in the yield curve environment

The result show that after controlling the mix of loan type, credit risks factors and the yield
curve, there was no statistically significant increase in the reportable volume for loan
originated directly by lender during 2005

La courr Micheal (2006) examined the home purchase mortgage product preferences of
LMI households. Objectives of hid Study were to analysis the factors that determined

18
their choice of mortgage product. The role pricing and product substitution play in this
segment of the market and to verify whether results vary when loans are originated
through mortgage brokers. In this case regression analysis has been used and results
have shown that high interest reduces loan value

Dr. rangarajan C. (2001) said that the financial system of India built a vast network of
financial institutions and markets over times and the sector is dominated by banking
sector which accounts for about 2-3 of the assets of organized financial sector

Depaul Singh (2001) in his study entitled consumer Behavior and bank retail products an
analysis “stresses that the borrower’s attitude is an important factor for the improvement
of housing loan schemes.

R.E.Keishna And V.S Krishna Mouthy (1999) stress in their article entitled “Trend And
Policy issues of Housing Finance in india”, that simplified procedure and speedy sanction
of housing loans will give a boost to the constructing houses.

19
20
21
 CHAPTER 3
BANK PROFILE

ICICI bank is India’s second-largest bank with total assets of about Rs.2, 513.89 billion
(US$ 56.3 billion) at March 31, 2006 and profit after tax of Rs.25.40 billion (US$569million)
For the year ended March 31, 2006(Rs.20.05 billion (US$449mn) for the year ended
March 31, 2005).ICICI Bank has a network of about 614 branches and extension Counters
and over 2,200 ATMs. ICICI Bank offers a wide range of banking product and financial
services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, life
and non-life insurance, venture capital and asset management. ICICI Bank set up its
international banking group in fiscal 2002 to cater to the cross boarder needs of clients
and leverage on its domestic banking strengths to offer products internationally. ICICI
Bank currently has subsidiaries in the United Kingdom. Russia and Canada, branches in
Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai international Finance centre and
representative officers in the United States, United Arab Emirates, China, South Africa
and Bangladesh.

Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable
bank in India in terms of market capitalization.

ICICI Bank’s equity shares are listed in India on the Bombay stock Exchange and
the National stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York stock Exchange (NYSE).

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors
and employees.
22
At June 5, 2006, ICICI Bank, with free float market capitalization*of about Rs.480.00
billion (US$ 10.8 billion) ranked third amongst all the companies listed on the India stock
exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an India financial
institution, and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank was
reduced it 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales
by ICICI to institutional investors in fiscal 2001, and 2002.ICICI was formed in 1955 at the
initiative of the world Bank, the Government of India and representatives of India industry.
The principal objective was to create a development financial institution for providing
medium term and long-term project financing to India businesses. In the 1990s, ICICI
transformed its Business from a development financial institution offering only project
finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first India Company and the first bank or institution from non-
Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the

context of the emerging competitive scenario in the India banking industry, and the move
towards universal banking, the managements of ICICI and ICICI Bank formed the view
that the merger of ICICI with ICICI Bank would be optimal strategic alternative for both
entities, and would create the optimal legal structure for the ICICI group’s universal
banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity’s to access to low-cost deposits, greater opportunities for earning fee-
based income and the ability to participate in the payment system and provide transaction-
bank services. The merger would enhance value for ICICI Bank shareholders through a
large capital base and scale of operations seamless access to ICICI’s strong corporate
relationship built up over five decades, entry into new business segments, higher market
share in various business segments, particularly fee-based
23
 services, and access to the vast talent pool of ICICI Bank and its subsidiaries. In October
2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and
two of wholly-owned retail finance subsidiaries, ICICI personal financial services Limited
and ICICI Capital services limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002.

Board of Directors of ICICI Bank

Mr. Girish Chandra Chaturvedi
Non-Executive (part-time) Chairman
..............................................
Mr. Hari L. Mundra
Independent Director
..............................................
Mr. Lalit Kumar Chandel
Government Nominee Director
..............................................
Mr. S. Madhavan Mr. Sandeep Bakhshi,
Independent Director Managing Director & CEO
.............................................. ..............................................
Ms. Neelam Dhawan Mr. Anup Bagchi,
Independent Director Executive Director
.............................................. ..............................................
Mr. Radhakrishnan Nair Mr. Sandeep Batra,
Independent Director Executive Director
.............................................. ..............................................
Ms. Rama Bijapurkar Ms. Vishakha Mulye,
Independent Director Executive Director
.............................................. ..............................................
Mr. B. Sriram
Independent Director
..............................................
Mr. Uday Chitale
Independent Director

24
Home Loan Interest Rate
Below Pricing is linked to Repo Rate (RR). Repo Rate as on May 22, 2020 is 4.00%.
Standard Pricing

Salaried Borrower

Slab Floating Interest rates

RR + 2.80% (6.80%) - RR + 3.60%
Up to ₹ 35 lacs
(7.60%)
RR + 2.90% (6.90%) - RR + 3.75%
₹ 35 lacs to ₹ 75 lacs
(7.75%)
RR + 2.90% (6.90%) - RR + 3.95%
Above ₹ 75 lacs
(7.95%)

Self - Employed

Slab Floating Interest rates

RR + 2.95% (6.95%) - RR + 3.85%
Up to ₹ 35 lacs
(7.85%)
RR + 3.00% (7.00%) - RR + 3.95%
₹ 35 lacs to ₹ 75 lacs
(7.95%)
RR + 3.00% (7.00%) - RR + 4.05%
Above ₹ 75 lacs
(8.05%)

Above mentioned interest rates will vary basis various parameters such as the Bureau
Score, Profile, Segments, etc.

Pricing of Home Loan Balance Transfer with repayment from ICICI Bank Account

Segment Floating Interest Rates

Salaried (Any Loan Amount) RR+2.80% (6.80%) – RR+3.35% (7.35%)
Self Employed (Any Loan Amount) RR+2.95% (6.95%) – RR+3.50% (7.50%)

25
26
 CHAPTER 4
THEOROTICAL BACKGROUND

TYPES OF HOME LOAN

There are different types of home loans available in the market to cater borrower’s
different needs.

 Home Purchase Loan: This is the basic type of a home loan which has the
purpose of purchasing a new house.
 Home Improvement Loan: This type of home loan is for the renovation or repair
of the home which is already bought.
 Home Extension Loan: This type of loan serves the purpose when the borrower
wants to extend or expand an existing home, like adding an extra room etc.
 Home Conversion Loan: It is that loan wherein the borrower has alr4eady taken
a home loan to finance his current home, but now wants to move to another home.
The Conversion Home Loan helps the borrower the transfer the existing loan to
new home which requires extra funds, so the new loan pays the previous loan &
fulfills the money required for new home.
 Bridge Loan: This type of loan helps finance the new home of the borrower when
he wants to sell the existing home, this is normally a short term loan to the borrower
& helps during the interim period when he wants to sell the old home & want to buy
a new one, It is given till the time a buyer is found for the old home.
 Home construction Loan: This type of loan taken when the borrow wants to
construct a new home.
 Land Purchase Loan: It is that loan which is taken to purchase a land for
construction & investment purposes.

27
 HOME LOAN DOCUMENTS

There are some documents for Home loan / Housing loan mandatory
like pan card. Age proof, income papers, bank statement.
1. Pan card or other ID Proof
2. For proof of identity: Pan card / passport / Voting I card / driving
license.
3. Age proof: Pan card / passport / Driving license.
4. Residence proof: Electricity bill / Passport / Telephone bill /
Mahanagar gas.
5. Income documents:
1. Self-employed: 3 yrs& salary certificate for previous
three months.
2. Salaried: Form 16 for 3 yrs& salary certificate for
previous three months.
6. Copy of bank statement for previous six months, reflecting salary
or the regular business transactions.
7. Minimum two years for salaried as well as self-employed.
8. All payment receipts.
9. Sale agreement (Agreement between seller and buyer) if property
is resale then following documents are required:

 Registration and stamp duty receipt.

 Original share certificate of the society.
 Allotment letter from the society in your
name. Lease deed, if executed.

 Certificate of the registration of the society.

 No-objection certificate (NOC) from the society.

1. 7/12 extract or property register card in the society’s name N.A

(Permission for the land from the collector) Order under the ULC act
28
 (Urban land ceiling act) Building plans sanctioned by the authority.
Corporation/Nagar palika granted commencement certificate. The latest receipts of taxes
paid. Original agreement to assign/ deed of assignment. Occupation certificate (o.c).
2. Passion letter on builder’s letter head in case of property purchased
form builder.
3. 4 photos.
4. Cheque will be in the name of seller in case of resale and builder if
purchased from builder if purchased from builder.

Post sanction documents for home loan/

housing loan
1. Postdated cheques (PDC) or ECS mandate from or standing
instruction request.
2. Margin money receipt.
3. Completion Certificate with photo

Eligibility

Everyone wishes to buy a property get a home loan and repay the loan can get home
loan. Bank / lender has a set certain eligibility criteria that you need to meet before getting
home loan / housing loan. Your age should be minimum 21 years and maximum 58 years
for salaried applicant and 60 years for self-employed. Applicant should have stable source
of income (the minimum take home pay of the applicant should be Rs. 1, 00,000/-. The
applicant should be cumulative service for a minimum period of two years or should be
self-employed for a minimum period of three years.

29
a) GENRAL TERMS AND CONDITIONS:-

The following are the terms and conditions applicable to the basic home loan product
only. These are likely to change on the basis of the variation of the home loan product.
Typically, in general home loans, the following conditions are applicable:-

1. The loan to value ratio (LTV) cannot exceed a particular percentage. This differs
from product to product and from one housing finance institutional bank (HFI/B) to
another. The components of the value of the property calculated here are covered
under cost of property.
2. The maximum tenure of the bank is nominally fixed by HFI/Bs. However, HFIs/Bs
do provide for different terms and conditions.
3. The installment that one pay is normally restricted to about-50-per cent of the
monthly-gross income of the candidate.
4. The total monthly outflow towards all the loans that have been availed of, including
the current loan is normally to 50% of the gross monthly income.
5. One will be eligible for a loan amount which is the lowest as per one’s eligibility.
This is calculated as per the LTV norms and the FOIR norms as mentioned above.
6. Most HFLs/Bs considers the profile before they judge the repayment capacity. The
judgment is based on age, qualification, number of dependents, employment
details, employer credentials, work experiences, previous track record of
repayment of any loans that have been availed of, occupation, the industry to which
the candidate’s business relates to, if he/she is self-employed, then the turnover in
the last 3-4 years etc.
7. Some HFLs/Bs insists on guarantees from other individuals for the repayment of
the loan. In such cases, the customers have to arrange for the personal guarantee
before the disbursement of the loan takes place.
8. The property should be technically clear before the HFLs/Bs disburses the loans
amount. Most of institutions and banks have a team of technical experts who visit
the site to get a technical report before the disbursement of loan.
9. The disbursement of the loan is as per the progress of construction of the property
unless it is a ready property in which case the disbursement will be
by one single cheque. PEMI or simple interest on the loan amount disbursed to
the customer in case of part disbursement.
10. The disbursement in most cases will be favoring the builder or the seller or the
society or the development authority as the case may be. The disbursement will
come in the customer’s favour under special circumstances only.
11. The repayment of loan can be made either through deduction against salary, post-
dated cheques, standing instructions or auto debit instruction to bank.

30
b) Charges applicable to home loan
The different kinds of charges applicable to home loan are discussed below :

i. Processing fees:-
First of all, comes the process fee. This is a charges that is levied by most
HFLs/Bs. This has to be paid at the time of sanction of the application form.
It’s normally charged as a percentage of the loan amount 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.

ii. Administrative fees:-

This charges again, normally, a percentage of the loan amount sanctioned.
It is collected by the maintenance of customer’s records, issuing interest
certificates, legal 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.

iii. 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 principle monthly reducing method. Most
HFIs/Bs given an option to select either a fixed rate of interest or a variable
rate of interest or a variable rate of interest.
iv. Legal charges:-
Some HFI/Bs mainly public sector banks levy legal charges that they incur
on getting the property document vetted by panel of lawyers.

31
 v. Technical charges:-
These charges are also levied by certain housing finance institutions/banks
to meet their expenses on the technical visits to the customer’s property.
Within the norms as stipulated by the respective approval authority.

vi. Stamp duty and registration charges:-

HFIs that go in for a registered mortgage pass these charges on to the
customer. These are rather heavy in certain states to the customer. These
are rather heavy in certain states depending on the laws laid down by the
state where one buy the property.

vii. 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 guarantee.

viii. Credit documentation:-

Given below is the exhaustive list of credit documents that need to be
submitted for a general home loan product. The documents vary from one
HIF/B to another based on one’s employer, qualification, experiences etc.
the general requirements are as :-

A. Income documentation
B. Proof of employment
C. Employer’s details
D. Proof of age
E. Proof of name change(if applicable)
F. Proof of investment
G. Legal documentation

32
 ADVANTAGES OF HOME LOAN

The various benefits of home loan arising to the customers are:-

a) Attractive interest rates:-
The various bank offer attractive interest rates to boost and help their customers. Many
banks provide loans on fixed or floating rates to facilitate consumers as per their needs.
b) Help in owning a home:-
The home availed by a person with the help of banks, because they provide technical
and financial assistance to customers for owing their dream home.
c) No requirement of guarantor:-
The commercial banks now liberalize their laws regarding home loans. Some of banks
don’t even require the guarantor to grant loan for consumers.
d) Door-step services:-

These doors to step services are provided from enquiry stage to the final disbursement
takes place such services are beneficial for the final disbursement takes place such
services to customers to borrow loan.
e) Loan period:-
There are many banks which provide maximum loan tenures up to 15-20 years based
on the loan amount and the credibility of customers. This provides the customers to
repay amount till a long period.

33
 DISADVANTAGES OF HOME LOANS

The main objectives of home loan are high lightened as below;

Delays in processing:-
Many times, there are huge delays in processing of providing home loans because
various formulations to be fulfilled in this process. Due to these delays customers feel
mentally as well as financially weak.
Fluctuating interest rates:-
Some banks give home loans as floating rates; fluctuate at different intervals due to some
reasons. These changes sometimes, may lead to increase in interest rate which will
increase the cost of home loans to the customers.
High cost:-
The public sector banks charge high processing cost for home loan’s sanctioning. They
are forced to pay serious charges at various stages to fulfill the requirements. Some
consumers are not able to pay such charges so such people could not avail the benefits
of home loan schemes.
Problems in disbursement:-
There are many problems in disbursement of home loan amount. There are some delay
in disbursement of loan amount to the customers due to legal formalities. This causes
problems to the customers.
DISBURSEMENT OF HOME LOAN:-
The every bank has its own procedure to disburse the loan amount among customers.
After choosing your right home, the next step is disbursement of home loans. The loan
amount is disbursed after identifying and selecting the property or home that are
purchased and submit the requisite legal documents. The 230A clearance of seller and
/or 371 clearances from the appropriate authority of income tax is also needed

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 CHAPTER 5
RESEARCH METHODOLOGY

Research in common refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a
specific topic. In fact research is an art of scientific investigation. Another
meaning of research as “a careful investigation or inquiry especially through
for new facts in any branch of knowledge.”
Redman and Mory define research as a “systemized effort to gain new
knowledge.” some people consider as movement a movement from the
know to the unknown it is actually a voyage of discovery.

Data Sources
In the preparation of this project it is necessity to collect the primary
data and secondary data.

Primary data
The first-hand information bearing on any research which has been
collected by the researcher may be called “Primary data” Collecting
information various with the help of proposals credit policy of the
bank.

For the current research, primary data collected with the help of
surveying respondents which was conducted in Katol city for the Home
Loan Costumer of ICICI Bank.

Secondary data
The secondary data on the other hand, are based on the second
hand information. The data which have been already been collected,
compiled and presented easier by any agency may be used for
purpose of investigated such data may be called ‘secondary data “.
Collecting the information with the help of annual report, magazines,

36
internet, and reference book. The secondary data provide by
organization. The needed information is collected from journals
annual reports, magazines etc.

Sampling
Sampling refers to the method of selecting a sample from a given
universe with a view to draw conclusions about that universe. A
sample is a representative of the universe selected for study.

Sample size
Large samples give reliable result than small sample. However, it is not
feasible to target entire population or even a substantial portion to
achieve a reliable result. So, in these aspects selecting the sample to
study is known as sample size.
The sample size consist both the professionals and business class
people, doctors, jewelers, timbers merchants and real estate
agents as sample.

For the current study total sample size was taken into
consideration of 50 home loan customer of ICICI Bank.

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 CHAPTER 6
DATA ANALYSIS AND INTERPRETATION

The analysis is based on the responses given by customers

through questionnaire.

AGE GROUP AND SURVEYED RESPONDENTS

Age No. of
group respondent
Below 30 44
30-40 3
40-50 2
Above 50 1

Analysis
From the chart above we find that 87.5 % of the respondent fall in the age
group of Below 30 years,5 % fall in the age group of 30-40 years and 5%
fall in the age group of 40-50 years.
therefore most of the respondent are relatively young ( below 30 years of

39
age ) and 0.5% respondents age are 50 to above years .

Gender classification of surveyed

respondents

Sr. no Category NO. of Percentage

respondent
1 Male 30 60.5%
2 Female 20 39.5%
Total 50 100%

Interpretation:-

From the table and graph above it can be seen that

 60.5% respondent’s are Male

 39.5%respondent’s are female
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 Educational qualification of respondents

Sr. no Category NO. of Percentage

respondents
1 Under graduate 4 8%
2 Graduate 14 29%
3 Post graduate 32 63%
total 50 100%

Interpretation

8% respondents are under graduate.

29% respondents are graduates.
63% respondents are post graduates

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 Customer Occupation of Surveyed
Respondents

Sr. no Occupation NO. of Percentage

respondents
1 Professional 7.5 15%
2 Self-employed 7.5 15%
3 Salaried 14 28%
Other 21 42%

Interpretation:-
From the table and graph above it can be seen that:-
15% of the respondents are professional, 15% are into self-employed, 27.5%
are salaried, And 42.5% are other

42
 Annual House Hold Income

Sr. no Category NO. of Percentage

respondents
1 Less than 2 lakhs 29.75 59.5%
2 Between 2 to 4 lakhs 4.05 8.1%
3 Between 4 to 6 lakhs 9.45 18.9%
4 More than 6 lakhs 6.75 13.5%

Interpretation:-
From the Table and graph above it can be seen that

59.5% respondent’s annual household income is less than 2 lakhs

8.1% respondent’s annual household income is between 2 to 4 lakhs
18.9% respondent’s annual household income is between 4 to 6 lakhs
13.5% respondent’s annual household income is more than 6 lakhs

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Type of home loan taken:
1. Home purchase
2. land purchase
3. re-finance loan
4. home expansion

Sr. no Category NO. of Percentage

responden
ts
1 Home Purchase 5 10
2 Land Purchase 10 20
3 Re finance loan 20 40
4 Home Expansion 15 30

reasone for home loan

Home Purchase
Land Purchase
Re finance loan
Home Expansion

Interpretation:-
From the Table and graph above it can be seen that maximum respondents
are taking home loan for Home Expansion purpose.

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 Reasons For getting The Home financed

Sr. no Name of Reasons Percentage

1 Reluctance to pay cash in on go 21.9%
2 Tax benefit 31.3%
3 Any other 46.9%

Interpretation:-
To interpret the response of the questions, very less number of customer
found the problem in Reluctance to pay cash in on go is 21.9% , customer
get hosing loan for tax benefit is 31.3% . this was the expected response
because a large number of people find a problem of any other of fund
which work as an obstacle in owing a dream home.

45
 Which things attract you the most Of
Respondents

Sr. no Category Percentage

1 Interest rates 47.2%
2 Service Provided 30.6%
3 Pay-back period 8.3%
4 Schemes 13.9%

Interpretation:-
From the Table and graph above it can be seen that

47.2% respondents under interest rate

30.6% respondents under service provided
8.3 % respondents under Pay-back period
13.9% respondents under schemes

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Approached for home loan through:

Sr. no Category Respondents Respondents

1 Directly branch 30 60
Builder
2 10 20
Agents/Counselor Known
3 personal in bank/F.I 5 10

4 Others 5 10

home loan through

Directly branch
5
Builder
10

30
Agents/Counselor Known
personal in bank/F.I

Interpretation:-
From the Table and graph above it can be seen that maximum number of
respondents are taken a loan directly through bank.

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 CHAPTER 7
FINDINGS

 ICICI bank having good brand image in the minds ofcustomer.

 Majority of the people got loans from ICICI Bank only.
 Most of the customers are aware of the products of ICICI Bank
home loans.
 Most of the people prefer ICICI Bank for home loan.
 ICICI bank providing Low Interest rates to theircustomers.

 It is found that maximum customer approached bank for home

loan directly.
 Significantly it is found that maximum customer are taking home
loan for tax benefits.


 

49
 

50
 CHAPTER 8
RECOMMENDATION AND SUGGESTIONS

These suggestions have been discussed as follows:-

1. To increase their customers, the ICICI bank should provide specialized

services in this sector. These services can be such as proper guidance
to the customer regarding the processing of loans, especially for the
customers who are illiterate.
2. To satisfy their customers and good dealings in future, the ICICI bank
should make prompt disbursement of their dream home as early as
possible.
3. The ICICI Bank should use easy procedure, or say customers.
4. Although the interest rates on specific norms, yet customers seek less
interest rate which can lower their cost of house. So, banks should try
to lower their interest rates.

The ICICI bank should try to provide proper knowledge regarding their home
loan schemes. Even to people who don’t know about such schemes and their
benefits especially in rural areas and the ICICI bank by considering this
suggestions, the loans sector. They should improve their customer base in
home proceedings and should be friendly to their services and reduce legal
proceedings and should be friendly to theircustomers. All this will be helpful
to satisfy their customers.

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 CHAPTER 9
LIMITATIONS

This study also includes some limitations which have been discussed as
follows:
1. The sample size of 50 customers and 4 banks might prove a
limitation because of difficulty in generalization of results.
2. To collect the data from various banks was quite difficult due to
non-co- operation of some banks to be major limitation of the
study.
3. To access such a large numbers of customers was difficult
because of non- co-operative attitude of respondents.
4. Lack of data was also the other limitations of the study as some of
banks do not have proper data on topic.
5. There was limitations of time to conduct such a big survey in
limited available time.
Thus above all were the limitations in the research study. The
maximum efforts were made to overcome these.

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 CHAPTER 10
CONCLUSION

1. In my study we come to know that many people are interested to take

a home loan from ICICI bank to construct their homes.
2. Home loans have a long period when compare to other personal loan
and other loans .so peoples are confused to take a home loan.
3. Even through the interest rates are slightly high peoples are willing to
take a loan from ICICI bank due to some reasons.
4. The interest rates also somewhat high when compare to other banks.
5. The loan sanction process is low when compare to other banks.
6. For disbursement process is also it will take low time when compare
to other banks.
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. However the study had some limitations also such as lack of
data, non-responses, reluctant attitude and illiteracy of respondent, which
posed problem in carrying out the research. But proper attention was made
to carry out research in proper way and to make accurate conclusion for
the ICICI bank which may be beneficial for banks to enhance their
customer based.

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 CHAPTER 11
BIBLIOGRAPHY

Books and sites:

 Books :-

Student guide for income tax By Vinod singhania

Research Methodology By C.R. Kothari
ICICIsanction & disbursement report

 Websites :-
www.icicibank.com
www.ubi.com
www.wikipedia.com
www.valueresearch.com
www.indiatimes.com
www.hitavada.com

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 CHAPTER 12
ANNEXURE

1) Name…………………………

2) Age

(a) Below 30 (b) 30-40 (c)40-50 (d) Above 50

3) Gender

(a) Male (b) Female

4) Education

(a) Under graduate (b) Graduate (c) Post Graduate

5) Occupation

(a) Professional (b) self- employed (c)Salaried (d) other

6) Which Income Group do you belong? (per annum)

(a) Below 2 lakh (b) 2-4 lakh

(c) 4-6 Lakh (d) 6 lakh & Above

7) Type of home loan taken:

5. Home purchase
6. land purchase
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 7. re-finance loan
8. home expansion

8) Reasons For getting The Home financed

1 Reluctance to pay cash in on go

2 Tax benefit
3 Any other

9) While taking loan, which things attract you the most?

(b) Interest rate (b) Service Provided
(c) Pay-back period (d) Schemes

(10) Approached for home loan through:

1 Directly branch
Builder
2
Agents/Counselor Known
3 personal in bank/F.I

4 Others

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