Selection of Housing Finance Company

(End to End Process)

Chintan Raval

PRN No - 2020033800093456

M.S.PATEL INSTITUTE OF MANAGEMENT STUDIES

(THE FACULTY OF MANAGEMENT STUDIES)
THE MAHARAJA SAYAJIRAO UNIVERSITY OF BARODA
BATCH (2020-2022)

I
Undertaking

I, Chintan Raval, prepared the Grand Project for internal evolution of two year regular MBA
programme, I have prepared this report with all my experience at my internship company and I am
ensuring that I am not representing the institute or/ Home First Finance Company India ltd.

Signature of the Student

Name Chintan Raval

2020033800093456
Date 25th April 2022
Place Surat

Mitu
l
Bhatt

II
III
Acknowledgments

I, Chintan Raval, Would like to thank entire M.S. Patel Institute of Management, The Faculty of
Management Studies, The Maharaja Sayajirao University of Vadodara. Especially Prof. Smita
Trivedi, who constant guide me for enhancing my work and provide guidance at each stage, So
that I am able to complete my Grand Project Internship. And also grateful to Dean of The faculty of
Management Studies, MS University Vadodara, Prof. M N Parmar Sir who believe in futuristic
approach and give a platform to pursue internship at corporate sector.

I Would like to thank entire Home First Finance Company for giving me an opportunity to work
with them. I am grateful to Mr. Mitul Bhatt, my project guide, provide full support for my project
complementation.

Thank you for always being supportive Placement coordinator Prof. Smita Trivedi.

IV
 EXECUTIVE SUMMARY

This report is about conceptual clarification of home loan sector and research design
method of this study. Since last decade loan is become significant aspects in every field,
we can not move ahead without loan for LT/ST loans. During my internship I was
contentiously being in touch with customer of company. I have collected data from the
company’s existing data as well got information from secondary data available inn market.

The objective of this project to know the Attitude of customer while taking home loan with
help of HFFC. And I have taken survey with help of structured questionnaire regarding
home loan sector.

In this era customer is more fluent than we are expecting, During the counseling
relationship manager has to be careful to offering some parameters of loan. Its totally
depending on what competitor is doing in prevailing market.

The objectives of the project are as follows:

Primary Objective
1. To determine the customer’s perception, while too many options are available in market, with
help of HFFC

Secondary Objective
1. To facing issue to choose correct option for home, where so many options available
in market.
2. Pradhan Mantri Awas Yojana, Subsidy offering by Every finance company
3. To know disbursal activity and service provide by Home First Finance Company

V
 INDEX

Sr No. Topics/Chapters Page No.

1 Introductory Part 1-3

2 Home Loan Sector Profile 4-9

3 Organization Profile 10-18

4 Literature Review 19-26

5 Objective & Confines of Work 27-28

6 Research-Methodology 29-32

7 Data Analytic Part 33-49

8 Observation & Major Finding 50-51

9 Conclusion Part 52-53

10 Recommendations 54-55

Bibliography 56-57

Annexure 58-61

VI
 TABLES IN REPORT

Sr No. Name of Table Page No.

6.0 Research Process 31

7.1 Gender(Male/Female) 34

7.1.2 Age Group 35

7.1.3 Income/Year 35

7.1.4 Work Type/Occupation 36

7.2 Awareness 37

7.3 Salary Parameter 38

7.4 Loan Type 39

7.5 Processing Fees 40

7.6 Paper Works 41

7.7 Disbursement Time 42

7.8 Motivational Factors 43

7.9 Awareness of CLSS 44

7.10 Duration of Disburse Loan 45

7.11 Home Loan In Nationalize Bank 46

7.12 Factor Affecting to Select HFCs 47

7.13 Ranking of All Groups Value 48

VII
 FIGURES/DIAGRAMS IN REPORT

Sr No. Figures Page No.

3.0 Organization Logo 11

3.1 Processing Fees Detail 12

7.1 Gender(Male/Female) 34

7.1.2 Age Group 35

7.1.3 Income/Year 35

7.1.4 Work Type/Occupation 36

7.2 Awareness 37

7.3 Salary Parameter 38

7.4 Loan Type 39

7.5 Processing Fees 40

7.6 Paper Works 41

7.7 Disbursement Time 42

7.8 Motivational Factors 43

7.9 Awareness of CLSS 44

7.10 Duration of Disburse Loan 45

7.11 Home Loan In Nationalize Bank 46

VIII
 CHAPTER 1
INTRODUCTORY
PART

1
 INTRODUCTORY PART

1.1 STUDY AT GLANCE

The project is based on customer’s perception, while too many options are available in
market, with help of HFFC. This report is based on research and sales analysis. To
understand what is customers requirement is main motive of this report study

This report is based on how Home First Finance Company India Limited is serving people,
how to work from lead generation to disbursement. How this company working with
customer, this housing finance company is known for their speedy work and technology
driven impression. I was learned how company approaching different way to increase sales
during this internship

During my internship I had met numbers of customer on field and off field, I had noticed that
many customer wants to take loan but no one is has idea about necessary documents and
what is required documents for ideal loan.

 Scope of Study
 Got idea about all loan products of Home First Finance Company(HFFC)
 Basic idea about how home loan sector works
 Customer’s attitude towards home loan, with too many options available
 Get Idea about many Financial Terms including CIBIL, Banking, ITR, ROF etc.

2
1.2 HOME LOAN IN BRIEF

In our country there different types of loan available in market. One of them is Home Loan
Those who wants to buy their own house they can apply through any banking or any financial
lender for fresh home purchase or any construction or any renovation purpose. The
Financiers are provide loan based on property deed or based on any mortgage.

In simple language, home loan is loan which we can get from Bank or any finance company,
they are charging specific rate of interest for certain time of period, but now due to
exponential increment in competition definition was changed. We have to understand wide
range of terms while taking loan from lenders

In Past home loan word is specific, but now a days home loan is wide used terms. Everyone
can apply for their home, for purchasing new house, for top up in existing loan amount, for
renovation of house, for loan against property and many options available in market.

3
 CHAPTER 2
HOME LOAN
SECTOR PROFILE

4
 HOME LOAN SECTOR PROFILE

1.3 STUDY AT GLANCE

The Housing Financial Company(HFCs) is a company ROF under the Companies Act, 1956
of Indian companies law. acquisitions of share, engage in the business of loan and advance
stock, bond, hire-purchases insurance businesses or chit-fund businesses but doesn’t includes
any institution whose principals business include agriculture activities, industrial activities or
the sales, purchases or constructions of immovable properties.

The working and registration of HFC are governed by the central bank, Reserve Bank of India in
the framework of the [Reserve Bank of India Act, 1934] (Part 3-B). On 9th November 2017-
18, RBI published a notification about norms for outsourcing of function & service by Non-
Bank Financial Institution (NBFCs) As per the new norms, NBFCs can’t outsourcing core
function like internals audit, managing investment portfolios, Some know your customer
(KYC) functions and sanction and disbursal of loans. All NBFCs’ All Housing Finance
Company has to report RBI for any Financial redressal

2.1 History of Housing Finance Company

The RBI Act 1934, implemented on 1st of December 1964, From now RBI focusing on Housing
Finance Sector and change their strategies to approach new areas Including HL(Home Loan),
PL(Personal loan), CASA(Current Account/ Saving Account), insurance Policies within Niche
Market.

5
Review Committees for NBFCs Framework

James Raj Committees

In the decade of 70s, RBI has formed Committee for auditing Chit Funds and Examining
Non Banking Finance Companies activities. This committee has recommended one uniform
chit fund governing body to whole nation.

RBI has prepared one Uniform bill for chit fund regulation, this committee was rules by
James S Raj.

In year 1974, based on James S Raj committee’s Recommendation Indian Parliament has
passed bill for Uniform Chit Bill, It will applicable to whole nation. This bill was amended in
year 1978.

Sukhamoy Chakravarty Committees

Planning Commission has introduced ‘Sound Monetary’ Policy. But due lack of
implementation this monetary policy wasn’t work during that time

In Year 1982, Governor of RBI, Manmohan Singh has appointed one committee in
chairperson of ‘Chakravarty Sukhamoy’ to analyzing monetary policy of India.

This committee had recommended that, have to create links between non Banking finance
Company and Banking sector. That will definitely helps to improve the credit and Economy

6
2.2 Different NBFCs
 Asset Finance Company (A.F.C.)

 An Asset Finance Companies which stakes maximum business in Indian market, now
a days all consumer loans including All automobiles, Machinery, All moving
equipment. This field has captured measure portion of market. Due to this segment
always helps to increase economical activities
 Due to this all vehicles and machinery engaging in economical activities, after
merging to this HFCs improves up to 60% total asset/income

 Loan Company (L.C.)

 Any Financial company or institutions which provides loan or any advances to

customers other than Asset Finance Company. It Includes in Loan Company(LC).

 Infrastructures Financing Companies (I.F.C.)

 Infrastructural Financing Company contributes their 3/4 of loans in infrastructure

Development
 The NOF(Net Owned Funds) < than 3k million and a minimum crediting rating of A+
and the Capital to Risk-Weighted Assets Ratio is Fifteen percent.


 I.D.F NBFC

 Infrastructure Debt fund - non Banking Finance Company, Provides funds for long
term Infra Development.
 Only Infrastructures Financing companies Can invest in IDF NBFC

7
  Residuary Non-Banking Company (R.N.B.C)

 This Non Banking Companies are That type of Non Banking Finance Company,
Which can only accept deposits, they can not invest like AFC or LC
 These type of company has to follow the maintaining criteria as per Reserve Bank Of
India’s Guideline.

2.3 Different between H.F.C and Bank

 No Banking Licence, Serve without licence

 Not facilitate to Deposit Demand
 NBFCs can’t issue or drawn Cheques
 An NBFCs has not required to follow Reserve Ratios (CRR, SLR etc.)
 An NBFCs not for agricultural activities, industrial activities FDI

2.4 Trends Towards Home Loan

Indian people always want a one dream house, Since many year ago people used to live in
society where their own house id build. As per survey taken by government 15-16 percentage
growth in next some year and contentiously growing up projection. As per government of
India’s census, in year 2014, 2.2 Crore houses shortfall. Governing body National Housing
Board is constantly working for it. New Pradhan Mantri Awas Yojna, is contributing to
decrease gap. As many options available for purchasing own house people are thinking for
purchasing new house.
.
Each bank is providing loan for various tenure viz; 10 year to 25 years. Buyer pattern is also
changed over two decades, Before 2 decades buyers are in age group of 40s, scenario has
been changed since two years, the age group of 30s are more likely to buy new house

As per estimation Indian Gross Domestic Product 7-8 percent dependent on home loan sector
customer is spending their 2/3rd portion for paying home loan EMI. Different NBFCs
companies are providing attractive rate of interest. NBFCs are equally divided by their
segments, some company offering lower interest rate and some of them offering higher
interest rates. Most of NBFCs are working in 20-30 lakh ticket size market

8
2.5 Main Players in Market
 Housing Development Finance Corporation Limited (H.D.F.C)
Housing Development Finance Corporation Ltd (HDFC), Data till 2018

Stake in market - 23-24%

Customer Served - 58 Lakh
Profit Rose - 27%
Total Income 11.5k Crore

 State Bank of India Home (S.B.I)

State Bank of India

Stake in market - 17-18%
Second Major player in market
Design for different varied customer

 L.I.C Housing Finance Limited

LICHFL - Life Insurance Corporation Housing Finance Limited, Data till 2019

Stake in market - 8-9%

Profit Rose - 21%
Total Income 1.2k Crore

 Industrial Credit & Investment Corporation of India(I.C.I.C.I)

Industrial Credit & Investment Corporation of India(ICICI), Data till 2019

Stake in market - 13%
Customer Served - 58 Lakh
Profit Rose - 1.8k Crore
Total Income 12.5k Crore

 Punjab National bank(P.N.B)

PNB Housing Finance Limited, Data till 2017

Offering to - Construction/New HL/NRIs
Profit Rose - 24%

9
 CHAPTER 3
ORGANIZATION PROFILE

10
 ORGANISATION PROFILE

3.1 Introduction

Home First Finance Company India Ltd. (HFFC), Established in 2010 Under HFC, is
Affiliate with National-Housing-Bank (NHB). HFFC was raised by former emphasis
chairman, Mr. Jaithirtha-Rao, & former Citi-Bank Consumer Banking Header, Mr. P S
Jayakumara. As on 31st March, 2018, Mr P S Jayakumar took a 6.30 percent stake in HFFC &
Mr Jaithirtha-Rao sold out his whole stake during a private equity funding in year2017.

Private company invested a significant hold in Home First Finance Company – True-North
71.50 percent and Bessemer Venture partner-20.08 percent as on 31st March, 2018. This
company provides home loans to the affordable sector with ticket sizes ranging from Rs. 2.7L
to Rs. 30L. Its average ticket size was Rs. 8.5L as on 31st March, 2018. In Financial Year
2018

Figure 3.0 Organization Logo

11
3.2 Merits of Home First Finance Company Indian Limited

 Lower interest rates for average profile

 Nominal processing fees - Slab wise PF system
 Tends to Zero paperwork
 Prepayment facility
 No other administrative charge
 Balance Transfer facility available

3.3 Peculiarities of Home First Finance Company Indian Limited

 Scopes:
 HFFC dreams to providing loan those who have some documented issues with
systematic way.
 Loan To Value(LTV):
- HFFC is offering up to 85% loan against property price
 Loan Time Duration:
 Loan tenure is flexible from 5 years to 20 years
 Customer pay whole loan at the time, no interest rate on remaining amount

 Processing Fees:

Figure 3.1 Processing Fees Detail

 Interest Rate:
1. Bank Salaried:
 9.5% and Maximum of 14.00%
2. For self-employed:
 Minimum of 12.50% and Maximum of 15.00%
 If ITR/Business Proof/Udhyog Aadhar available the ROI - 9.5%
12
 3. Insurance on Applicant
 For Insurance Amount is excluding than EMI

 Eligibility Criteria:
 You should be more than 21 years old
 Constant income with minimum 3 years of experience
 Government identity card(Aadhar Card/Pan Card/Banking)

Documents Required
 Loan Agreement
 Number of Passport size photos - 3
 Government identity card(Aadhar-Card/Pan-Card/Voter-ID/Passport/
Driving-Licence)
 Address Proof (Light Bill/Property Tax Bill/Gas Connection Book)
 Banking Statement/Passbook Entries for last 6 Month
 For Bank Salaried - Form 16/ ITR of 2 Years
 For Self Employed - ITR of 3 Years
 Business Proof - For Self Employed
 P & L / Final Account for ITR Applicant

 Equated Monthly Installments

 S.I. - Standing-Instruction
Any customer who are predetermine that will deduct from bank only, Home First
Finance Company Provides that type of facility. At the end of month it will be auto
deducted from the bank circular basis. Its known as standing Instruction basis
installment system.

 E.C.S. - Electronic-Clearing Service

In this mode EMI is deduct from the bank as per bank’s predetermine dated, In Home
First Finance Company, ECS date is 4th of each month. So every account holder has to
keep EMI amount in bank least before 24 hours.

13
  P.D.C. - Post-Dated Cheques

Customer can pay via post dated cheque, Customer can deposit their cheque to Home
first Finance Company before due date or for certain time, it can be work timely.
Customer can post their EMI at any nearest branch.

14
 August 2017
Record Breaking News
Recorded 1000 corers - Assets Under Management(AUM)

March 2017
Hitting the Hard
C Series Fund Received - True North

December 2016
Growing Rapidly
25 Cities Network + 1000+Project partnership

15
 September 2016
Achieve New Records
10,000+ Affordable Loans in Country

June 2016
Unstoppable HFFC
$100 Million Loan amount Booked

May 2015
Happy 5 Years
Established a Happiest 5,000 Consumer families.

16
 March 2014
Crossed BEP
We have Achieved Break Even Point #Profitable

March 2013
First Biggest Achievement
Sanctioned 1000 Loans, 10 million booked value

March 2012
Expansion and Flying
Started Business in Gujarat and Rajasthan

17
 May 2011
Our Head Office
Settle in Mumbai #Corporate Company

January 2011
Fund Raising
A Series Fund received - Bessemer Venture Partners

March 2010
Company Incorporated
Company is incorporated Today

18
 CHAPTER 4

LITERATURE REVIEW

19
 LITERATURE REVIEW

4.1 Research Paper Work

My literature review is done with help of many research paper which is done by well known
researchers, Which is described as below

Jones Lang Lassalle – This research study is carried by jones lang lassalle, who is well
known researcher in the loan sector. This research paper was published in year 2012, which is
basically based on affordable sector housing loan. How can we build strong market in urban
affordable sector, this research work is focused on lower triangle pyramid model. Peoplle
who wants to buy house in urban area - what they are facing problems. So how we can
initiate steps to making smooth process. This research paper helped me a lot to enhance my
study.

Knight Frank India Pvt. Ltd. – This research study helped me vital status, based on 2012
data research paper was formed by Knight Frank India Pvt Ltd. It was based on demand and
supply changes in affordable market segment. In this report compares data of past demand
and current demand it is sophisticated work done by this researchers. How changes happened
as compare to previous market in affordable sector.

4.2 Five Common Issues of Borrowers Face in India

20th November, 2017

by Mr. Raghavendr Singh

Bank advertisement can distract you choose right way to get loan, as bank publisher advertise
that we are providing effortless loan, you have to give us only least documents and we eill
give you loan, but picture is very known to us, nothing is effortless in India. We have to pay
right attention to fill it right way.

Apply through the traditional way is very common in Indian market. This process is as
lengthy as we are messed up with anything else. Every citizens are facing some issues while
applying for loans. Its very hectic procedure to fulfil while taking loan. Some certain
problems we have to follow.
20
1) Decline at the Initial stage by Bank

Its very true that many of the loans are declined by the bank at very first stage of loan. It is
obvious that customer has to fulfil some criteria to match with bank’s guidelines, like
customer has to compete Age, Income, Bank transaction, CIBIL, important documents. If
customer has none of the mentioned document then bank is decline upfront. So main problem
is to match the criteria to clear initial stage.

2) New for collateral

Once can easily get mortgage loan like vehicle loans, Home loans and any other loan against
property but customer can not get Personal Loan(PL). Banks are not ready to give unsecured
loan because of NPA risk. Banks are always in favour of reduce the risks and work wisely.
Many customer wants this types of loan for improves businesses but it can not get easily.

3) Higher ROI for Personal Loan

Due to lack of awareness, banks are offering higher interest rates for personal loan. First of
all people of our country are unaware about personal loan and secondly in our country there
are lack of availability of Personal Loan. So people may paying higher ROI

4) CIBIL Defaults

Worst CIBIL score can affect your banking activities, You may have lower credit score, 750+
Credit score or no credit history available in your account. Less than 700 credit score is
showing that in past made some defaults, 750+ credit score is showing you have good past
record, and -1 credit score is showing no credit history in your account

21
5) Enormous paperwork

A volume amounts of documenting is involve in the procedure of borrowing the loan. This
can’t be tedious for many borrower – as its a comprehensiveness process which one need a
cautious assessments of a numbers of documents. all of the paper works that go in to the
process isn’t only inevitable, but it is also essential to avoids any futurist trouble. The best
method to goes about the paper works processing is to made the check list of all the necessary
document before submit it to the banks.

22
Credit Linked Subsidy Scheme - CLSS

Government has announced Credit Linked Subsidy scheme - CLSS in year 2015. its interest
subsidy, affiliate with MOHUPA - Ministry of Housing and Urban Poverty Alleviation and
Pradhan Mantri Awas Yojana. An aim to announced CLSS is to facilitate lower income group
and economically backward class people. Subsidy is providing for new home purchase,
construction of house, and on any resale loans. CLSS is fall under National Housing Board
(NHB).

Credit Linked Subsidy Scheme is much helpful to affordable sectors growth - according to
Pradhan Mantri Awas Yojana. Our Prime Minister Shri Narenedra Modi has dream for
‘House for All’ will be defiantly succeed with this scheme.Our Prime Minister has once said
that every citizen of India, will have own house by 2024. Credit linked Subsidy Scheme will
will helpful to achieve this goal
This system has been developed to provide loan to interested people who wants to buy their
own house with secure home loan they can buy home under this scheme. In Indian more than
70+ Banking and non banking finance company are listed for CLSS applied company. People
are eligible to get up to 2.67 lakh subsidy under this scheme

23
CLSS for different Class

Categorical Type L.I.G. E.W.S.

3 Lacs – 6 Lacs
Income/Year Rs. 3 Lakh

Area 39 SqMtr - 60 SqMtr. 30 Sq. Mtr.

Subsidy Amount 6.50 Percent 6.50 Percent

Limitation for
6 Lacs 6 Lacs
Subsidy

20 Years or Tenure, 20 Years or Tenure, Whichever is

Subsidy tenure
Whichever is less less

Max. Amount of
2.67 Lacs 2.67 Lacs
Subsidy

 Facts and features of CLSS for EWS and LIG:

 Subsidy is available for loan amount is less or equal to 6 Lacs.

 Applicable to get max 2.67 Lacs subsidy.
 Only applicable for buying or constructing house
 Any amount above the amount of 6 Lacs, no subsidy shall be available.
 Customer is only applicable to get subsidy if one of the loan applicant is female and
buying their first home, otherwise not applicable for CLSS
 If customer has already owned sale deed house then their not applicable to go for
CLSS.

24
CLSS for Middle Income Group(MIG)

M.I.G.
Categorical Data M.I.G - 2

Income/Year 6 Lacs – Rs. 12 Lacs 12 Lacs – Rs. 18 Lacs

House Size 160 SqMtr 200 SqMtr

Subsidy 4 Percent 3 Percent

Loan Limitation for

9 Lakh Rs. 12 Lakh
Subsidy

20 Years or Tenure, Whichever 20 Years or Tenure, Whichever

Subsidy Tenure
is less is less

 Facts and features of CLSS for MIG (2 Salary Brackets):

 For MIG – ! - Salary Group: Interest subsidy can be availed at 4 Percent on home loans
up to Rs. 9 Lacs
 For MIG – !! -Salary Group: Interest subsidy can be availed at 3% on home loans up to
Rs. 12 Lacs
 Max subsidy available upto 2.35 Lacs

25
  Procedure to Apply for CLSS

Customer who match the criteria can apply for CLSS through the Prime Lending
institutions(PLI).This type of organization are verify the documents and submit for CLSS.
CLSS is about to 5 stage, up to 3 PLI are liable after that goverment National Central Nodal
Agencies looks.

Eligibility For CLSS

This is only applicable if in family consist complete family, Husband, wife, children. In case
customer is having a own house on her or his name in India is not match the eligibility
criteria. Government is providing subsidy to those who are applying for fresh loan, self
construction purpose, for construction of any part of house. Customer who are jointly
purchase their house, they are equally eligible for this CLSS.

Processing Fees for CLSS

There will be 0 processing fees charged by PLI for the applicant applying under the CLSS.
Therefore, making no need to worry for the applicant to plan their EMI for the benefits of this
Subsidy scheme.

PLI of CLSS Scheme:

Non banking Finance Company and all Housing finance Companies are Prime Lending
institutions for CLSS. These companies are licensed company for CLSS, Home First finance
Company India Limited is one of the PLI. Other than NBFCs, there are many housing finance
company they can also make application on behalf of applicants

26
 CHAPTER 5
OBJECTIVE AND CONFINES
OF THE
PROJECT

27
OBJECTIVE AND CONFINES OF THE PROJECT

5.1 OBJECTIVE

1) To analysis of disbursement process and after service provide by HFFC

2) To determine the customer’s perception, while too many options are available in market,
with help of HFFC

5.2 Scope/Confines of Study

The Geo located confines of study is within “Surat” only with sample size(n) of 200 people.
All the analysis part and suggestion are on basis of the of primary data.

Therefore, the scope of the study revolves around the following aspects:

 To get idea about different products offer by Home first Finance Company(HFFC)

 To get idea about CLSS applicability to every customer

 To get idea about how to spread awareness about home loan in customer

28
 CHAPTER 6
RESEARCH-METHODOLOGY

29
 RESEARCH-METHODOLOGY

6.1 Research-Methodology
Research - Methodology is one of the method to get solution with systematic approach.For
particular problem we have to initiate different methodology. To understand particular
problems, we have to know in depth study for that subject. In this method includes
methodological collection of data, analyze them and interpret accordingly and utilize all
aspects of research methods

6.2 Research Design

The research design is a arrangement of condition for collections and analyze of datum in a
particular manner that goals to compare the relevance research purpose with economies in
process. In fact, A research design is the conceptual & structure within the research is
happened; it constitute the Scheduled blueprint for the collections, measurements and analyze
of data.

6.3 Types of Research Design

A. - Exploratory Research Design Work

B. - Descriptive Research Design Work
C. - Casual / Experimental Research Design Work

6.3.1 Exploratory Research Design Work

This research design is also known as formula based research design study. Based on
hypothesis and depth investigation conclude the problem is main motive this study.
How to work precisely and complete investigation formula based its all about
Exploratory Research design. The main advantage of this study is that we can get better
insight of problems.

6.3.2 Descriptive Research Design Work

This studies are that study in which concerned with the describing the features of a
some individual or of the group. Study concerned with a specific prediction, with
narrations of data received & features concerned specific and individual, group /
situations were all example of descriptive research design. Most of the social research
come under this categorical research design.
30
6.3.3 Casual / Experimental Research Design Work

Based on cause and solution relationship, Causal Research design is based on causal
relationship between problems and affect the cause. How independent variable affects
dependent variable is research work in this research design method. This research design is
more practical because we can conduct the hypothesis and experiments based on this
method.

6.4 Period of study

The research is conducted during the 9th February 2022 to 15th April

Primary data can be collected by four way: -

1. Observations During Internship

2. Taken Survey

3. Interviews with Existing Customer and Employee

4. Questionnaire for Getting Responses

6.5 Research Procedure

Particular Description
Research Type Descriptive Market Based Research
Research-Approach Quantitative Approach
Method of Sampling Non Probability / Convenience-Sampling
Sample Pattern Company’s Existing Customers
Sample Universe(U) Countryside
Sample Frame(Data Received) HFFC Surat Customers
Total Responses Received 200
Sample Size(n) 200
Primary Data Collected Via Questionnaires
Secondary Data Collected Via Internet
Books
From HFFC Regional Head

T.No. 6 Research Process

31
6.6 Objective of Study

6.6.1 Primary Objectives

To determine the customer’s perception, while too many options are available in market, with
help of HFFC

6.6.2 Secondary Objective

1. To determine the customer’s perception, while too many options are available in market,
with help of HFFC

2. To get idea about CLSS applicability to every customer

3. To analysis of disbursement process and after service provide by HFFC

6.7 Data Type

6.7.1 Primary Data(1):

 Primary Data is getting through information collected directly from the

customer, Personal Interviews, Relevant Questionnaire. The data collected
from the direct sources, covert to the research work

 It is to the end approach, as it is designed to a organization’s specific need,

very important information for that company which one started the research
that’s, the outcomes are use for the purpose for which they were original
intended.

 This is lengthy process but it couldn’t give the appropriate information

6.7.1 Secondary Data(2):

 This data is available in any format via google, internet explorer, news paper,
literature books, companies past record, and in any ready to use data, so this
data is to the end data which can use directly for research work.

 Secondary data allow for compare worth of statistical information related to,
for examples, a sector of the economies, where the information might be used
to measuring the effect of changes or whatever its, that is being researched
work.

32
 CHAPTER 7
DATA ANALYTIC PART

33
  Based on collected data through the Google form, I have prepared some demo-
graphical charts. This data is thoroughly of HFFC Surat Region Customers

1) Demographics Data: -

A) GENDER(Male/Female)

MALE 144

FEMALE 56

T.No. 7.1 Gender(Male/Female)

Gender

28%
Male
Female

72%

Diagram No. 7.1 Gender(Male/Female)Age

34
 25-40 90
40-55 80
Above 55 30

T.No. 7.1.2 Age Group

Diagram No. 7.1.2 Age Group

B) Income/Year
> 2.5 Lacs 80

2.5Lacs - 5Lacs 100

5 Lacs-10 Lacs 14

> 10 Lacs 6

T.No. 7.1.3 Income/Year

Income/Year
7% 3%

40%

50%

Less than 2,50,000 2,50,000-5,00,000 5,00,000-10,00,000 Above 10,00,000

Diagram No. 7.1.3 Income/Year

35
C) Work Type/Occupation
Salaried(Cash/Bank) 80

Self employed 120

T.No. 7.1.4 Work Type/Occupation

Diagram No. 7.1.4 Work Type/Occupation

INTERPRETATION:
This data is collected from Surat, Magob branch customers, there are 3500 customers
portfolio out of them I have collected data of 200 customers, above I have prepared some
demographic data, out of 200 customer I have got 144 Male and 56 female customer, out of
them age group of 25-40 are 90, 40-55 are 80 and above 55years are 30. People who got
income less than 2.5 lakh is 80, who got between 2.5 lakh to 5 lakh is 100, 14 customers are
getting between 5 lakh to 10 lakh and only 6 customers income are more than 10 lakh. Out of
200 customers 60% Self employed and 40% cash/bank Salaried

36
2)From where you got information about company (HFFC)?

DSA 100
Branch Footfall 10
Relatives 10
Advertise 20
Builder 60
T.No. 7.2 Awareness

Diagram No. 7.2 Awareness

INTERPRETATION:
Above data is collected through the 200 respondents, out of 200 customers, there are 50% of
customer is getting information regarding HFFC home through the Direct Selling
Agent(DSA), 30% from Builder who are already tied up with HFFC, 10% from
advertisements, remaining 10% from branch walk in and from relatives who are existing
customer of HFFC

37
3)What is your income parameter?

Cash Salaried 100

Bank Salaried 30
Cash & Bank(Proportionate) 70
T.No. 7.3 Salary Parameter

Diagram No. 7.3 Salary Parameter

INTERPRETATION:

Out of the 200 Respondents 50% are getting salary in cash due many of applicants are
working in informal sectors, 15% of them getting salary in bank and 35% are getting salary in
in cash & bank proportionately

38
4) Which type loan you have got?

L.A.P 20
Se.Co 80
Row Houses/Flats 80
Reconstruction 20
T.No. 7.4 Loan type

Diagram No. 7.4 Loan Type

INTERPRETATION:
The above data is showing the different type of loan taken by customers, 40% customer has
taken for Fresh housing loan including row house and flats, 40% had taken loan for self
construction(Se.Co),10% had taken for Loan Against Property(LAP) & 10% for
reconstruction.

39
5) Are you feel that Processing Fees are higher?

Yes 140
No 60
T.No. 7.5 Processing Fees

Diagram No. 7.5 Processing Fees

INTERPRETATION:
The above table shows that 70% of Customer Feel that Processing Fees was Higher and 30%
people are feel that its nominal

40
6) What is your view for paper works?

Optimum 156
Too Much 44
T.No. 7.6 Paper Works

Diagram No. 7.6 Paper Works

INTERPRETATION:
From the study I have get idea that 78%(156) respondents are feel that paper formalities were
less and remaining feel that too much formalities

41
7)How many time take to disburse loan?

7 Days 120

14 Days 40

21 Days 20

More than 21 Days 20

T.No. 7.7 Disbursement Time

Diagram No. 7.7 Disbursement Time

INTERPRETATION:
By this study revealed data that 120 customer has got loan in account in 7 days, 40 people got
loan at bank in 14 days, 20 customer got loan at bank in 21 days and remaining were got loan
at bank after 21 days; that is because of delay in documentation

42
8)Which factor that affects you to get loan from HFFC?

80
Refund PF, if loan decline

Rate of Interest(ROI) 6
Way of sanction and disbursement 60
Facility available at HFFC 54

T.No. 7.8 Motivational Factors

Diagram No. 7.8 Motivational Factors

INTERPRETATION:
The Home First Finance Company is known for their refund processing structure, if in any
case loan get decline then customer is liable to get 75% processing fees refund so many of
customer would love to apply a HFFC, Rate of interest is not min motivational factor to
customer of HFFC, Very fast and smooth process of disbursement is also motivational factor
for customer to apply for home loan at home first finance company. Nd also good facility
available to the customers.

43
9)How do you get to know about CLSS?

News/Newspaper 40
Advertising Campaign 10
110
By Employee of HFFC

By Builder 40
T.No. 7.9 Awareness of CLSS

Diagram No. 7.9 Awareness of CLSS

INTERPRETATION:
The study revealed that many of customer got idea about CLSS by communicate with HFFC
employee during the business development meeting. Out of 200 respondent 20% were
getting idea about Credit Linked Subsidy Scheme from Builder and 20% from News &
Newspapers, remaining by advertisement campaign.

44
 10)What is time duration taken by HFFC to Disburse Loan?

Too Little 10
Justifiable 40
Little Long 100
Too Much 50
T.No. 7.10 Duration For Disburse loan

Diagram No. 7.10 Duration for Disburse Loan

INTERPRETATION:
As per study very few customer are thinking that for disbursement of loan time is very little,
only 5% candidates are feeling that time taken for disbursement is very little, 40% of
respondents are thinking that time taken for disbursal is justifiable. Major applicants were
responded that time consuming is longer than they advertising for 7 days disbursal time. And
out of 200 respondents, 50 respondents has responded that its really time consuming bank to
taken time for disbursement.

45
11)Would you love to apply in Nationalize bank for home loan?

Yes 166
No 34

T.No. 7.11 Home Loan in Nationalize Bank

Diagram No. 7.11 Home Loan in Nationalize Bank

INTERPRETATION:
From the study I get know that people are more interested to get loan from the nationalize
bank because of the lower Rate of Interest(ROI). People are always looking for cheaper
interest so always try to apply in public sector bank. Due to lack of documents and other
unmatched criteria people are force to take loan from the NBFCs and HFCs. In NBFCs
company there are less documentation and some nonrestrictive part people are convince to
take loan from that companies

46
 12)Which factor affecting while selecting housing finance company?

More Least Not

Questions Important Neutral
Important Important Important
Amount of Loan Amount 46 120 27 7 0
Flexible loan Process 40 110 41 8 1
More Loan Options 43 107 38 9 3
ROI og Loan 73 99 20 17 11
Time for Disbursal 59 115 17 5 4
Facility of loan transfer 36 116 29 13 6
T.No. 7.12 Factor Affecting to Select HFCs

 ASSUMPTION

1. Samples are drawn from the random population

2. Observation are independent base
3. Measurement of scale should be ordinal

 HYPOTHESIS(Step 1)

H0 - No significant difference respondents age and selection of housing finance company

H1 - Significance difference respondents age and selection of housing finance company

47
 Ranking of All Groups Value(Step 2)

Rank More Least Not

Size in Ascending Important
Rank (A,B.C.D Important Neutral C Important Important
Order B
.E) A D E
0 0 E 0
1 1 E 1
3 2 E 2
4 3 E 3
5 4 D 4
6 5 E 5
7 6 D 6
8 7 D 7
9 8 D 8
11 9 E 9
13 10 D 10
17 11.5 D 11.5
17 11.5 C 11.5
20 13 C 13
27 14 C 14
29 15 C 15
36 16 A 16
38 17 C 17
40 18 A 18
41 19 C 19
43 20 A 20
46 21 A 21
59 22 A 22
73 23 A 23
99 24 B 24
107 25 B 25
110 26 B 26
115 27 B 27
116 28 B 28
120 29 B 29
Total 120 159 89.5 46.5 20

T.No. 7.13 Ranking of All Groups Value

48
The rank total for A is R1=120

The rank total for B is R2=159

The rank total for C is R3=89.5

The rank total for D is R4=46.5

The rank total for E is R5=20

49
 CHAPTER 8
OBSERVATION
&
MAJOR
FINDINGS

50
 OBSERVATIONS & MAJOR FINDINGS

1) Through out the study I have finds that majority portion of existing customers are fall in
15k-40k income group. And company give loan to those who are buying their first house
in life
2) Customer are got know about Home First Finance Company from the DSA(Direct
Selling Agent), and direct branch walk in is lesser than other parameters
3) Most of the customers are finding problems to pay processing fees, because of they are
belonging to the lower income group. So company’s processing fees is major issue
4) Motivational factor is to get refund of 75% processing fees, if in any case got
rejected due to some reason. So that is attracts customer to at least apply for loans
5) Customers who are CIBIL defaulter or getting salary in cash they can apply for the home
loan, Relationship Manager verify the customers profile and accordingly sanctions loan.
6) Customer can pay their full loan without any charges.
7) Most of the customers are not aware about PRADHAN MANTRI AWAS YOJANA
scheme, And also not aware about CLSS. Most of them got to know from employee of
HFFC.

51
 CHAPTER 9
CONCLUSION
PART

52
 CONCLUSION PART

 In India every one has dream that they have one own house in their areas, but
due to some reason they can not buy the House, reasons are;
 Low Credit Scores
 Cash Salaried
 Margin Money(Down payment issue)
 Collateral issue
 Rate of Interest(ROI) is higher of Private Loan Lenders
 Higher Processing fees, Non refundable policy

 This study work is based on with many options available for getting home
loan, facing issue by home loan
 Customer get attraction to the products of Home First Finance Company
(HFFC) on this basis of the Advertise. It showing the great brand awareness in
to the public.
 The study revealed that most of people prefer private and nationalize bank to
get loan.

53
 CHAPTER 10
SUGGESTIONS &
RECOMMENDATIONS

54
 SUGGESTIONS AND RECOMMENDATIONS

1) This bank is working in affordable sectors, so many of customer has issue with literacy,
so Home First finance Company Has to carry a special drive for brand awareness and
teach people how to apply for loan. So customers will attract to get the loan from HFFC
2) Niche marketing strategy is useful to get more customer footfall.
3) For better satisfaction HFFC has to create prompt disbursal of loan so they can able to
make their future house and dream project
4) HFFC has to make compulsory legal report and technical report, prior to disbursement so
company couldn’t face legal issue in future and make smooth disbursal procedure
5) This company has to do more publicity as DSA - Direct Selling Agent.
6) Company has to reduce processing fees, they can charge partial payment of processing
fees, like 30% after approval, 30% after sanction and remaining at the time of
disbursement.
7) Company has to think for ROI - Rate of Interest, If customer’s profile is good then they
have to charge as lower as possible

55
CHAPTER 11
BIBLOGRAPHY

56
 BIBLOGRAPHY
Website

1. https://homefirstindia.com/
2. https://en.wikipedia.org/wiki/NBFC_%26_MFI_in_India
3. http://mohua.gov.in/cms/credit-linked-subsidy-scheme.php
4. Economic Times
5. Times of India
6. https://en.wikipedia.org/wiki/Financial_services

Books Referred

1. Financial Management by Eugene. F. Brigham.

2. Kothari C.R. 1990 Researches Method : Method and Technique, Vishva Prakashana,
New-Delhi.

57
CHAPTER 12
ANNEXURE

58
 ANNEXURE

QUESTIONNAIRE FOR DETERMINE THE CUSTOMER’S PERCEPTION,

WHILE TOO MANY OPTIONS ARE AVAILABLE IN MARKET, WITH
HELP OF HFFC

 Name of Applicant

 Gender(Male/Female)
 Male
 Female

 Age
 25-40
 40-55
 Above 55

 Annual Income
 > 2.5 Lacs
 2.5Lacs - 5Lacs
 5 Lacs-10 Lacs
 > 10 Lacs

 Occupation
 Self Employed
 Salaried(Cash/Bank)

 Are you feel that Processing Fees are higher?

 Yes
 No

57
 From where you got information about company (HFFC)?
 DSA
 Branch Footfall
 Relatives
 Advertise
 Builder

 What is your income parameter?

 Cash Salaried
 Bank Salaried
 Cash & Bank(Proportionate

 Which type loan you have got?

 L.A.P
 Se.Co
 Row Houses/Flats
 Reconstruction

 What is your view for paper works?

 Optimum
 Too Much

 How many time take to disburse loan?

 7 Days
 14 Days
 21 Days
 More than 21 Days

 Which factor that affects you to get loan from HFFC?

 Refund PF, if loan decline
 Rate of Interest(ROI)
 Way of sanction and disbursement
 Facility available at HFFC
60
 How do you get to know about CLSS?
 News/Newspaper
 Advertising Campaign
 By Employee of HFFC
 By Employee of HFFC

 What is time duration taken by HFFC to Disburse Loan?

 Too Little
 Justifiable
 Little Long
 Too Much

 Would you love to apply in Nationalize bank for home loan?

 Yes
 No

 Which factor affecting while selecting housing finance company?

 Amount of Loan Amount
 Flexible loan Process
 More Loan Options
 ROI og Loan
 Time for Disbursal
 Facility of loan transfer

61