A

PROJECT REPORT
ON
STUDY ON HOME LOANS IN BANKING SECTORS
With reference to

INDIA BULLS SECURITIES LIMITED.

Project report submitted in partial fulfilment of the

requirement for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
Submitted By
B.SUSHMA
H.NO: 1315-20-672-019
Under the guidance of

B.P.MEGHANA
Asst. Professor

OSMANIA UNIVERSITY, HYDERABAD

DEPARTMENT OF BUSINESS MANAGEMENT
NAVA BHARATHI COLLEGE OF P.G.STUDIES
(Affiliated to Osmania University)
Road no: 37,Burton Road,Bolarum, Secunderabad,
Medchal District, Hyderabad
(2020-2022)
 DECLARATION

I, the undersigned, hereby declare that the project report entitled

“A STUDY ON HOME LOANS IN BANKING SECTOR” carried out at

INDIA BULLS SECURITIES LIMITED is my original work written and

submitted by me in partial fulfillment of Master`s Degree in Business

Administration (Osmania University). I also declare that this project has not

been submitted earlier in any other university or institution.

Date: B.SUSHMA
 ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep sense of

gratitude to the authorities ofINDIA BULLS SECURITIES LIMITED,for giving

me the opportunity to undertake this project work in their esteemed

organization. I profusely thank Mr. G.V.N.RAMA RAOAssistant manager

FINANCE.

My sincere thanks to Nava Bharathi College of P.G studiesand my project

guide B.P.MEGHANA for the kind encouragement and constant support

extended in completion of this project work.

I am also thankful to all those who have incidentally helped me, through

their valued guidance, co-operation and unstinted support during the course of

my project.

B.SUSHMA
 ABSTRACT

The objective of this study is to understand the conceptual frame work of home loan in India

and to undertake the empirical study on home loan industry. In this regard primary data is

being used. The various issues related to drivers of demand in housing, evolution of home

loan, Housing in India, importance and types of home loan have been discussed. Through this

paper the basics of housing loan addressed.

The housing sector plays an important role in the economic development of the country. Every

rupee invested in housing adds 78 paise to the GDP. Over 269 industries are directly or

indirectly dependent on the housing sector. There is an estimated shortage of 20 million

housing units in the country with an estimated investment requirement of over Rs 1500

billion. It is important to know about the home loan agreement clauses before signing in it as

it will help the borrower to bargain with the lenders. This study was conducted among the

281 commercial bank consumers spreading all over. Convenient sampling method was

employed. The results indicated that the majority of the consumers are not aware about the

various clauses in the home loan agreement and majority of the customers do not know the

importance of reading it. This throws up a challenge to Reserve Bank of India and National

Housing Bank to create the awareness of the home loan agreement.

 TABLE OF CONTENTS

S.NO CHAPTER NO NAME OF THE CHAPTER PAGE NO.

CHAPTER –I INTRODUCTION
1 01-10

2 CHAPTER –II REVIEWLITERATURE 11-17

CHAPTER – III RESEARCH METHODOLOGY 18-22

3

CHAPTER – IV COMPANY PROFILE 23-39

4

DATA ANALYSIS
5 CHAPTER – V AND 40-64
INTERPETATION

6 CHAPTER - VI FINDINGS , 65-67

SUGGESTIONS
AND
CONCLUSION

7 BIBLIOGRAPHY 68-69

8 ANNEXURE 70-73
 CHAPTER-I
INTRODUCTION

1
 INTRODUCTION
Almost every citizen wishes to purchase their own house in their name and in this day and
age, land and property prices have increased significantly, offering an attractive investment
for individuals in India.
A Home Loan is taken out from a bank or financial company in order to purchase/construct a
new house or reconstruct an existing mortgage. There are several different ways in which an
individual can get a home loan mortgage. Over the past few years, many new banks and
housing finance companies have opened up and are providing attractive and low lending
rates. There are many housing finance lenders who are ready to give the latest information
about the bank of mortgage rates.
An individual who is looking for housing loans should be aware of all his requirements and
then he/she can search for housing finance services in India. Without knowing the
requirements it is difficult to understand the process of a home loan. A borrower who is ready
to go for house loans should check their monthly incomes and the location of the borrower.
You will also want to look into getting home insurance quotes for your new home. Given the
present economic conditions, the prices of properties are rapidly on the rise especially in the
major cities across India. This is making it difficult for middle class families to afford these
huge investments. Keeping this fact in mind, bank of mortgage services in India considered
these facts and came up with attractive mortgage interest rates so that the middle class
families can take a home lending bank loans. Borrowers should consider each and every
aspect of home lending from selecting the property to closing the finance loan amount. The
borrowers will be maintaining a long-term relationship with the finance company so it is wise
to take a loan from a bank which you feel comfortable with.
An individual who is looking for housing loans should be aware of all his requirements and then
he/she can search for housing finance services in India. Without knowing the requirements it is
difficult to understand the process of a home loan. A borrower who is ready to go for house loans
should check their monthly incomes and the location of the borrower. You will also want to look into
getting home insurance quotes for your new home. Given the present economic conditions, the prices
of properties are rapidly on the rise especially in the major cities across India. This is making it
difficult for middle class families to afford these huge investments. Keeping this fact in mind, bank of
mortgage services in India considered these facts and came up with attractive mortgage interest rates
so that the middle class families can take a home lending bank loans. Borrowers should consider each
and every aspect of home lending from selecting the property to closing the finance loan amount. The

2
borrowers will be maintaining a long-term relationship with the finance company so it is wise to take
a loan from a bank which you feel comfortable with.
The core function of commercial banks is granting of credit. Although banks offer a wide spectrum of
financial services, lending has traditionally been their main function. Banks profess experience,
expertise and flexibility in lending which gives them a clear competitive advantage over other
financial institutions. Lending of funds to businessmen, traders and industrial enterprises is one of the
most important activity of a commercial bank.

The term “LOAN” refers to the amount borrowed by one person from another. The amount is in the
nature of loan and refers to the sum paid to the borrower. Thus, from the point of view of the borrower
it is „borrowing‟ and for the bank it is „lending‟. Loan may be regarded as „credit‟ granted where the
money is disbursed and its recovery is made on a later date. It is a debt for the borrower. While
granting loans, credit is given for a definite purpose and for a predetermined period. Interest is
charged on the loan at an agreed rate and intervals of payments.

3
GENERAL PRINCIPLES OF SOUND LENDING:
1. SAFETY :
Safety first should be the guiding principle to be followed in granting loans and advances.
Since banks deal with money of their customers. They have to ensure the safety of the funds lent.
Safety means the borrower must be in a position to repay what is due to him.
The former depends upon his tangible assets and the success of his business if he is
successful in his efforts. He earns profits and can repay the loan properly. Otherwise the loan is
recovered out of the sales proceeds of the borrower. The bank takes care of the business of which the
loan has to be given.

2. LIQUDITY :
It is the ability of the banker to convert the loan into cash. Without much loss in its value.
Money granted for long period are less liquid than for short period of time.

3. PROFITABILITY :
A banker cannot run the institution without profits. It is essential to meet the daily expenses of the
bank to pay the interest on deposits. The rate of interest charged in the past where primarily depended
on directives issued by the reserve bank. Now banks are free to determine their own rate if interest on
advances above 2 lakhs.

4. SECURITY :
No banker sees the horoscope of the customer while giving him the loan or an advance. He calculates
his lending risk and lends the loan.

5. PURPOSE OF THE LOAN:

Repayment of the loans is mainly done on the purpose for which it is needed. Loans are provided with
the productive purposes which would enhance the earning capacity of the borrower. Loans are not
given for speculative purposes.

PRECAUTIONS TO BE TAKEN BY A BANKER:

A banker must take the following precautions while granting loans and advances to the
borrowers:
Precautions to be taken before sanctioning a Loan;
 The banker must try to know the background of the applicants, i.e., his experience, honesty,
character, etc.

4
  The applicant for a loan must be properly introduced to the banker.
 The future profits should also be checked up by the banker to determine the borrower‟s loan
repaying capacity within a stipulated period.
 In case the banker is not satisfied they can ask the applicant to furnish a guarantee from a
reliable party well-known to the bank.

Precautions to be taken after sanctioning a Loan:

 The banker must ensure that borrower pays the installments regularly.
 The banker must obtain the documents like a demand promissory note, an agreement
of hypothecation, a letter of guarantee and a letter of loan.
 The banker must ensure that the loan is properly utilized.

Factors affecting lending decisions:

There are three important factors affecting the lending decisions of lenders
 Financial Condition of Borrowers: Lender wants to know about borrowers financial
state before they give borrowers a loan. They want to confirm whether the borrower
have cash in hand so that they can make a down payment.
 Ability To Repay The Loan: Lenders think whether they can earn enough money now
and in the future to make payments. They want to know whether the borrowers have
any debts and lenders always look for borrowers with neat and clean credit.
 Credit History: Lenders want to know about borrowers past payment habits. If the
lenders find in borrower‟s credit report that they have never been regular in their
payments before, they are not convinced to sanction borrower the loan.

LOANS:

A loan is a kind of advance made with or without security. In case of a loan the bank makes a
lump sum payment to the borrower or credits his deposit account with the money advanced. It is given
for a fixed period at an agreed rate of interest. Repayments may be made in installment or at the
expiry of a certain period. The customer has to pay interest on the total amounts advanced whether he
withdraws the money from his account or not.

5
Home is an integral part of a human being, who since his childhood, dreams to have living

space of his own. Once in a lifetime investment requires loan to do it and that is how the

home loan comes into scheme of things. Buying a home is dream for everyone. Due to the

rising price of properties, it has almost become impossible for an average earning person to

buy a home through lump sum payment. Therefore, the concept of home loan has come into

existence. There are plethora of housing finance institutions and banks both in public and

private sector which offer home loans. Choosing one institution and one offer for home loan

amidst the thousands available options have become a very complex task in our country.

Apart from this, there are intricate business jargons and technicalities that make this job more

tough and difficult. Through this study, I propose to identify the critical factors impacting the

growth and distinguishing the growth pattern in home loan portfolio particularly in public

sector banks in India.

Housing in India The housing is one of the basic needs of the people as it ranks next to food

and clothing. A certain minimum standard of housing is essential for a healthy and civilized

living. Thus, the priority has to be given for the development of housing in a country. The

human settlements have a lot of impact on environment. It is a tool for modern economic

development. The census records of India exhibits that there was no deficit-housing problem

in India till the first half of the century. In 1901, there were 55.8 million houses for 54 million

households showing a surplus of 1.8 million houses. This surplus situation continued till

1941. It was only after 1951, the deficit trend has started and is continuing with an escalating

magnitude. In 1971, total number of households was 100.4 million and the number of houses

was 90.7 million, showing a deficit of 9.7 million. The housing shortage in 1991 was about

31 million units. The housing shortage during 2001 was 41 million. The estimated housing

stock requirement in the country by 2021 is about 77 million in urban areas and 63 million in

rural areas. The increasing number of houses and a rising trend in the size of the households

6
has contributed to the shortage of housing stock in the urban areas. Only 20% of the Indian

population lived in urban areas in 1970 (UNDP 1998). The urbanization is expected to

increase still. This resulted in an estimation of 36% of the population to live in urban areas by

2015. In India, there is a very widening gap between the supply and demand for housing.

There is an urgent need to modify the policy on one hand and look for an innovative

approach for construction of houses on the other to reduce the deficit. The Government of

India(GoI) had introduced schemes and projects for housing problem in every five year plans.

The National housing Policy formulated by government of India takes into account the

developments on national and international scene on shelter sector. The adoption of National

Housing Policy by the Parliament in 1994 was a landmark step in promoting housing

development in the country.

The policy in its endeavor has reduced deficit of housing to some extent. It envisages a major

shift in the Government‟s role towards being a facilitator rather than provider. The working

group on urban housing for the ninth plan gave a thrust to housing development an targeted

construction of 8.87 million housing units. The National Housing and Habitat Policy 1998

emphasized housing for all by the end of 2007 (Peter D F Cardozo). This would have been

achieved with the help of public and private firms and corporate sectors. The rapid

urbanization and a changing socio-economic scenario led to a greater demand for housing.

This led to an exponential growth in housing finance market. Drivers of Demand in Housing

The housing demand is a product of three different variables. First and foremost is the

primary need that is driven by increasing population. Secondly, economic growth and

consequent urban migration have caused changes in preferences towards more nuclear

families, causing a perceptible lowering of the household size. Finally, increasing

affordability has driven households to invest in larger houses. Increasing population:-

Population growth has a direct bearing on the requirement for housing units and, through this,

7
on Floor Space Area (FSA) requirements. Urbanisation:-Urbanisation has twin impact on

housing demand. On one hand, it reduces the area per household, and on the other, there is an

increasing need for more nuclear families, leading to the formation of more number of

households. Nuclearisation:-Nuclearisation refers to the formation of nuclear families from

joint families. Nuclearisation, like urbanisation, also has twin impact. It reduces the area per

household, but increases overall household formation, thereby increasing the demand for

housing units. Affordability:-There has been a steady movement of households into higher

income categories. The movement is more pronounced in the high-income categories.

Evolution of Home Loan Home Loan plays a vital role as an engine of equitable economic

growth through the reduction of poverty and prevents slum proliferation in economy. The

demand for housing is increasing rapidly day by day. Therefore, to meet with the growing

housing demand is the aim of the government. To achieve this aim it is required to provide

the loan for housing to the people. Theliberalization of the financial sector of the economy

has also become possible by the housing finance. Home Loan is the funds buyer has to

borrow usually from a bank or other financial institutions to purchase a property, generally

secured, by a registered mortgage to the bank over the property being purchased. A mortgage

loan is a debt owed on a home, the mortgage rate is the interest rate charged to the home

owner for the use of the loan. Home loan is a broad topic, the concept of which may vary

across lands, regions and countries, particularly in terms of the areas it covers. For example,

what is understood by the term “home loan” in a developed country may be very different

from what is understood by the term in a developing country.

Housing Finance is linked with the provision of infrastructure and utilities because it has a

clear relationship with the volume of new stock which will be built. As mentioned earlier,

housing finance plays an intermediary role between production consumption economy and

housing system. Through change in polices in the capital market can be expanded so that a

8
part of the resources flow into housing. Thus, housing finance is an important link in the

potential for transforming the creation of housing and social urban investment into strips of

property and benefit for the people including low income groups. How the flow of resource

helps the wider range of income groups will depend upon the terms and conditions built into

the design of housing credit. Generally, housing requires longer term finance than the one in

industry.

Importance of Home Loan

The need for home loans arises not because property prices are heading upwards all thetime

but because home loans make great sense from a long-term savings perspective. Not only are

home loans a handy tool for the common man to own a roof over his head but they also help

to save money in the long run.

With skyrocketing real estate prices, people are increasingly opting for housing loans to

acquire their dream home. Interest rates are coming down all the time and the banks and the

housing finance companies are literally falling over each other to lure the prospective home-

seekers.

Notwithstanding the tax breaks and generous lending rates, a lot of people still cannot arrange

resources for the down-payment, which comes out to be at least 15 per cent of the property

value. Taking cognizance of the situation, Banks are coming up with home loanproducts

called „zero down payment loans‟ wherein 100 per cent funding is provided for select

properties. These lucrative offers are other major reasons for why people are opting for loans.

Even if one can afford to buy a home with one's own money, home loans should be availed

because they act as good savings instrument. According to industry estimates, the long term

average return in investing in a home is about 20% p.a. while the average cost of borrowing

funds in the market today is about 7% p.a. (considering all tax breaks).

9
For salaried employees, housing loans are the best way to avail of tax benefits. Many people

simply go for the home loans in order to avail these benefits. Interest payments up to 2.0 lakh

on housing loans are deductible from the taxable income and there is a further deduction of

taxable income maximum up to 1.5 lakh against repayment of principal portion per annum. In

case a person stays in a rented house, the cost of the loan will be nearly zero percent since he

will be saving a decent amount on rent.

Types of Home Loan

Various types of home loans are available in India. They are described below:- Home

Purchase Loan These are the basic home loans for the purchase of a new house. These loans

are given for purchase of a new or already built flat/bungalow/row-house. Home

Improvement Loan These loans are given for implementing repair works and renovations in

a home that has already been purchased by the customer. It may be requested for external

works like structural repairs, waterproofing or internal works like tiling and flooring,

plumbing, electrical work, painting, etc. Home Construction Loan These loans are available

for the construction of a new home. The documents required by the banks for granting

customer a home construction loan are slightly different from the home purchase loans.

Depending upon the fact that when customer bought the land, the lending party would or

would not include the land cost as a component, to value the total cost of the propertyHome

Extension Loan Home Extension Loans are given for expanding or extending an existing

home. For example addition of an extra room, etc. For this kind of loan, customer needs to

have requisite approvals from the relevant municipal corporation. Land Purchase Loan

Land Purchase Loans are available for purchase of land for both home construction or

investment purposes. Therefore, customer can be granted this loan even if customer is not

planning to construct any building on it in the near future. However, customer has to

complete construction within tenure of three years on the same land. Bridge Loan Bridge
10
Loans are designed for people who wish to sell the existing home and purchase another. The

bridge loan helps finance the new home, until a buyer is found for the old home. Balance

Transfer Balance Transfer loans help customer to pay off an existing home loan and avail

the option of a loan with a lower rate of interest. Customer can transfer the balance of the

existing home loan to any another bank. NRI Home Loan This is a special home loan

scheme for the Non-Resident Indians (NRI) who wishes to build or buy a home or land

property in India. They are offered attractive housing finance plans with suitable

reimbursement options by many banks in the country. Concluding Note The present study

addresses the core issues of housing in India. Through this paper the drivers of home loan,

evolution and types of home loan are discussed will definitely help the readers for better

understanding the concepts of housing loan and accordingly the prospective customers can

approach the banks as per their need. Most of the time lack of knowledge of housing loan

products the customers could not take the benefit of the same. This can be taken care through

this paper.

11
 CHAPTER-II
REVIEW OF LITERATURE

12
REVIEWOFLITERATURE
Empirical studies on operational efficiency of Housing Finance Companies (HFC) are quite
rarein India, probably because of the fact that emergence of formal housing finance system
has beenvery late in this country. It was only in 1988 that a formal regulatory system for
housing financeemerged in India, when National Housing Bank (NHB) was founded, and a
National HousingPolicy was formulated for the first time in the history of the country. Most
of the HFCs startedfunctioningduringthat period.
Lall(1984)focusedattentionupon„formalfactor‟(PermanentConstruction)whichservedmainly
to the HIG and MIG, the loan meets only 47% of the price of the house, forcing theborrowers
to make very large down payments. Also the price of a typical house was above 3times the
annual families‟ income of the borrowers. In spite of, the entire system of housingallocation
and credit the supply of affordable funds was much smaller than demand. Thus, largegrowth
in urban population and the historically low priority given to housing, supply falls veryshort
of demand and need. Therefore, not only that the volume of saving and investments
shouldincrease but also larger volumes ofcapital should flow into housing. Also, accessibility
andterms and condition of housing credit will determine the long term redistribution
performance inhousing.
Joshnu (2001) studied the prospects of the U.S. housing / mortgage sector over the next
severalyears.Basedonhisanalysis,hebelievesthat,thereareelementsinplaceforthehousingsectorto
continue to experience growth well above GDP. However, he believes that there are risks
thatcan materially distort the growth prospects of the sector. Specifically, it appears that a
largeportionofthehousingsector‟sgrowthinthe1990‟scamefromtheeasingofthecreditunderwritin
gprocess.
Melissa (2002) concluded that public investment in and promotion of homeownership and
thehome mortgage market often relies on three justifications to supplement shelter goals: to
buildhouseholdwealthandeconomicself-sufficiency,togeneratepositivesocial,psychological
states, and to develop stable neighborhoods and communities. Home ownership and
mortgageobligations do not inherently further these objectives, however and sometimes
undermine them.The most visible triggers of the recent surge in subprime delinquency have
produced calls foremergency foreclosure avoidance interventions (as well as front-end
regulatory fixes). Whatevertheirmerit,shecontendthatasystemofmortgagedelinquency
managementshouldbeanenduring component of housing policy. Furtherance of housing and
household policy

13
objectiveshingesinpart.Ontheconditionsunderwhichhomeownershipisobtained,maintained,lev
eraged, and in some situations exited. Given that high leverage or trigger events such as
jobloss and medical problems play significant roles in mortgage delinquency independent of
loanterms, better origination practices cannot eliminate the need for delinquency
management. Interms of analyzing this framework, it is tempting to focus on its impact on
mortgage credit costand access or on the absolute number of homes temporarily saved, but
her proposed analysis isbased on whether the system honors and furthers the goals of wealth
building, positive socialpsychological states, and community development. Because those
ends are not inexorably linkedto ownership generally or owning a particular home, a system
of delinquency management
thathonorstheseobjectivesshouldstrivetoprovidefair,transparent,humane,andpredictablestrateg
iesforhomeexit as well as forhomeretention.
Rao and Pahuja (2005) revealed that during 2002-03 housing loans by banks grew at a
heftygrowth rate of more than 100%. The factors that contributed to this aggressive growth in
theportfolio of housing loans of banks and HFC are: Tax intensives on repayment of principal
andinterest, rising income level of middle class, falling interest rate, stable real estate prices,
easyavailability of housing loans, low returns on the investment opportunities available in the
market.They also concluded that although there is strong growth in housing loans by financial
situationsin India, we are still behind the developed countries in terms of housing loans to
GDP ratio. InIndia it is around 2.5% compared to 57% in the UK and 54% in the US. It
shows that there is avast scope for housing loans in India. One economist has argued that
every rupee spent on thehousing sector will increase the GDP by more than 75 paise. It also
creates a labour intensive.Despite the immense growth in housing loans there are certain
challenges that the banks mightface in the time to come, e.g. falling rate of interest, rising
mismatch in the assetsand liabilitiesofthe bank, risingNPAin the housingloan portfolio, etc.
Bhalla et al. (2009) showed that the main business of housing finance in India is
concentratedaround a few players like banks and major housing finance companies. The HH
Index as anindicator of market concentration shows increasing trend both on the basis of
market share ofindividualplayers indisbursementof
loansaswellasonassetsbase.Itshowsdecreasingcompetitive ability of small players. Small
housing finance companies are losing the battle to thebigger players. Small players in the
sector are facing threat from the banks to capture their sharebecause of their widernetwork
and reach. Growing concentration of major share of housingloans disbursements in the hands

14
of larger banks and giant housing finance companies has forcedthe small housing finance
institutions to identify the challenging areas in this field to capture
thefuturemarketandensuretheirremarkableplace.Anotheraspectregardingthecompetitivedynam
ics in housing finance is that the indicators showing HFCs and other players as
luringcustomers to get housing finance are not mainly because of the stiff competition but
because ofthe need to change the attitude of the Indian people towards the phenomenon of
loan and to
bringthemintotheformalsystemofhousingfinance.InIndia,eventoday60percentofthehouseholds
approach informal sources or financiers to borrow funds, which mean an untappedmarket for
housing finance (Analysts 2001). Housing finance institutions particularly housingfinance
companies (HFCs) have to spread out geographically while ensuring consistency in
theprocessing and service standards to compete with the banking sector. The performance of
theseinstitutions has been influenced by more than just customer demand. Stricter NPA
norms, risinginterest rates, and stiff competition in mobilizing low-cost deposits have all
affected the supply-side factors,which inturn has influenced theperformance of these
institutionsintermsofvolumeand competitiveness (NHB2005).
Chandrasekar (2010) tried to analyse the structure of the newly liberalised housing
financemarketofIndiaandanalyseits affecton theIndianhousingmarket.
The first section of the paper introduced housing finance markets around the world. The
paperanalysed the history, structure andcurrent trends in thehousing markets of two
developedeconomies namely: USA and the UK. Secondly the paper analysed the interaction
of the
housingfinancemarketandhousingdemandintheabovecountries.Acomparativeanalysiswith
international housing finance markets improved our comprehension of the Indian market and
thechallengesit faces.
The second section of the paper presented a clear picture of the structure, composition
andfunctioningof housingcredit markets inIndia.
The third section of the paper analysed the relationship between Housing finance variables
suchas House disbursements and Interest rates and Housing demand variables such as
Housing salesandHousingdemand foracityinIndianamely; Hyderabad.
The last section of the paper discussed policy initiatives which could help boost the
Indianhousingandhousingfinancemarkets.
Chauhan and Shah (2010) found that housing shortage in India is increasing rapidly,

15
mainlybecause supply is much less than the housing demands. In urban area, the problem is
morecomplex and complicated as the pressure for houses and services due to both natural
increase
andmigration.ThemostimportantresourcesrequiredtopurchaseHouseisfinance.Housingplaysan
important role in a country‟s economy, typically accounting for 10 to 20 per cent of
totaleconomic activity.Inthispresentpaper investigationshave beenmade onallthe
HousingfinanceInstitutes inIndia and theirmechanism insystem.
Goyal and Joshi (2011) have deduced in their study on Social and Ethical Aspects of
Banking Industry that banks can extend themselves as a social and moral oriented association
by just dispensing credits to those social, moral and ecological concern associations.
Kumar and Gulati (2010) examined at the centrality of the possession on the Indian local
banks adequacy. Data Envelopment Analysis (DEA), which is a non-parametric,
deterministic and straight programming based system, was utilized to register open and
private division banks effectiveness score. The operational cross-sectional information of the
general population and private area banks amid the money related years 2005-06 and 2006-07
was utilized and it was found that (1) De nova private division banks command the
development of effective boondocks of Indian household saving money industry; (2)
Primarily, the entire specialized wastefulness stops from administrative inadequacy rather
than scale wastefulness; and (3) Though the general population and private part banks'
productivity contrasts have been noted, in a large portion of the cases these distinctions are
measurably insignificant. Overall, it is reasoned that industry possession is incapable in the
Indian local saving money industry.
Naveen K.Shetty and Dr.Veerashekharappa (2009) studied the significance of
microfinance in achieving money related incorporation. The paper concentrates on effect of
the expanding hole sought after and supply of money related administrations in India which
has prompted the expanding populace of the nation to be avoided from the formal budgetary
credit framework on housing advance.
Kerry D (2008) broke down, amid the period 1998-2008, there was a sharp ascent and
afterward there was a surprisingdrop in the home costs. Financial basics were the
fundamental purposes behind these adjustments in home costs. Thusly the issue was not a
result of subprime loaning, but rather emotional diminishments in the Fed, a short time later
amid the early mid-2000 there was an expansion in the rates of premium; the development of
housing was engaged in the business sectors where there were critical supply-side limitations,

16
that able to be more value unpredictable. Likewise the issues laid in light of expansion and
decline of certain home loan items, instead of credit lack.
Sendhilvelan and Karthikeyan (2007) RBI has expressed that the development towards
general keeping money ought to have speedier dependability and proficiency of the budgetary
framework, yet without anyone else it cannot give a viable or feasible answer for the
operational issues of individual organizations emerging from credit capitalization, abnormal
state of NPAs vast resources liabilities crisscross, liquidity and so forth. However in a
business sector driven economy to confront the opposition one variable is the size and
subsequently, the passage of Universal banks is unavoidable for the general monetary
advancement of our nation. There is most likely step by step we are moving towards the
administration of a couple of substantial banks from the administration of numerous little
banks. This illustration is accomplished with the idea of widespread managing an account
which surely fortify the banking sector.
Talwar (1996) in an article on the present saving money situation and the requirement for an
arrangement change, opines that a noteworthy concern tended to by managing an account
segment change is the strengthening of the budgetary wellbeing of banks. The presentation at
prudential standards is better money related order by guaranteeing that the banks are aware of
the danger, benefit of their loan portfolios.
Boyd (1994) the study closes on rate of interest charged on advances, enthusiasm on bank
accounts, notoriety. All these interest have played an essential part for customers and money
related execution of a bank in business sector. However, customers likewise mind other
criteria, for example, the amount of agreeableness of representatives, item, online offices,
paper work and postliminary.
Spencer (1991) pointed that the significance of bank picture as focused technique for
expanding customer activity stream. Inclination for bank amongst understudies as supplier of
money related administrations, more noteworthy trust in huge medium estimated banks,
significance of customers by work force, focused store rates and credit accessibility were the
key discoveries.
Narasimham Committee (1991) In the most recent two decades different changes came in
the keeping money framework in our nation that were engaged and highlighted by
Narasimham Committee. Till now has progress going on. By this bank came to know their
frail focuses and how to came up. There were numerous angles which decrease in

17
profitability, effectiveness and gainfulness of a bank framework. The board of trustees firmly
makes changing, solid economy ventures to make Indian banking framework effective.
Rangarajan(1988) Remarks that division of banks credit for gainful reason in vital for
financial improvement. Banks are more unbending in loaning exercises and along these
linesmeriting and poor individuals are not getting budgetary help. New measures are key to
guarantee that advance achieve meriting hands.
Leelamma Kuruvilla (1999) tosses light on National Housing Policy and new activities in
housing money. She proposed that the adjustment in the lawful casing work, rearranging the
strategy for housing money and the dynamic contributions of the Government in the housing
division will moderate the housing issue.

Mathurn (1993) opined that the money related weight of interest in housing is by and large
substantial when the proprietor does not have adequate assets accessible to pay for the site
and the whole cost of development. Consequently, he should make game plans to acquire
reserves from some different sources.
Parekh (1988) reported that the eventual fate of housing fund is to improve the credit start
process for housing all through the nation to build up an institutional system that would
encourage the beginning procedure, to distinguish the potential asset base for the framework
in general and to disentangle the lawful framework as for danger administration of housing
money organizations.
Vidhayavathi. K (2002) in her study evaluated the performance of housing finance
institutions on certain selected business parameters as well as through an opinion survey over
the home loan seekers and concluded that apart from interest rate advertisement, service
quality, courtesy and speed of service are certain other important dimensions affecting the
growth of housing finance industry.
Karthik. G. (1998) in his study about the Housing and Development corporation and
national housing bank argued that profitability and growth of housing finance in India is
largely based on the development and introduction of new schemes matching the economic
profile of the borrowers. This study suggested improvement in schemes is highly essential for
the growth of housing finance in India.
Thirumann. R.M. (1981) attempted to study the role of Co- operative societies in lending
housing finance in Chennai city. The study has covered the Importance of housing, its
components, housing shortage in urban and rural areas the role of Government, and the role

18
of private and public sector in housing. He also discussed the problems of housing and
housing finance in India.
Usha Patel (1996) clarified that at present housing through bank fund was a piece of bank's
need division loaning. Furthermore, every nationalized bank is relied upon to designate each
year a predefined rate of stores and plan for its arrangement for financing immediate and also
circuitous housing programs.
Pillai Kalathil, S.R.(1996) expressed that it will be fitting for all administrations and open
area housing money association to have a focal pool course of action of guiding with would
be borrowers. Legalities must be rearranged.
Naik (1981) uncovered that housing credits are typically best in class against the security of
home loan of area and the working to be developed with the advance. Housing fund is along
these lines contract account.

19
 CHAPTER-III
RESEARCH METHODOLOGY

20
OBJECTIVES OF THE STUDY

The study has been undertaken with the following objectives.

 To analyze banks loans and advances in detail.

 To know the terms and conditions laid down by the banks for sanction of loans.

 To study about the loan policy, credit evaluation and supervision of loans and
advances at INDIABULLS HOUSING FINANCE PVT LTD .

● To know the more objective of this study is to know the Customers perceptions about home
loans.
● To analyze various methods of operating home loan.

21
SAMPLE SIZE
The sample size for this study was 100 employees that comprises of executives, non-
executive, managers, etc. We analyzed the data using simple sampling technique.

NEED OF THE STUDY

In the era of growing importance of financial status, there is an increased importance for
various financial institutions which provide such loans.The main objective of the study of the
loans and advances is to understand the lending policies and the various schemes of financial
assistance provided by the bank. The bank works comparatively different from other financial
institutions and banks as it works according to the rules and regulations and the guidelines by
the RBI.In the post reforms period, banks are facing tough competition due to interest rate
regime. In today‟s buyer market, banks are facing cutthroat competition. Hence they are
introducing new loan products to meet the requirements of the various segments of the
society to know the importance of the retail lending in banks.

22
SCOPE OF THE STUDY

The study is undertaken at INDIABULLS HOUSING FINANCE PVT LTD The scope is limited to
the extent of details study of various lending schemes at INDIABULLS HOUSING FINANCE PVT
LTD Disbursement analysis is done in case of important lending schemes for the past 2017-2021.

 The study is mainly concentrated on the lending practices pattern and influence in the
organization‟s performance.
 To know more about the loans and advances which help us to explore future
prospects.
 To study the precautions to be taken while advancing the loans.
 To analyze the profit sources for a bank by providing loans and advances.
 To evaluate customer‟s eligibility, procedure involved for the sanction of loans and
advances and the customer‟s mode of repayment.
The operational jurisdiction of the research is limited to INDIABULLS HOUSING
FINANCE PVT LTD The scope covers all loan schemes of INDIABULLS HOUSING
FINANCE PVT LTD

23
DATA SOURCES
The researcher has wide varieties of methods to consider either single or in combination they were
grouped first according to whether this use secondary or primary sources of data.

Primary Data:

For the collection of primary data, researcher constructed and administered a pretested structured
questionnaire from the borrowers and officers executives of the selected banks. Institutional
questionnaire was framed to collect the responses from bankers and the individual questionnaire was
constructed to collect the responses from the urban population who have borrowed at least one of the
loans mentioned earlier from the selected banks and their sister concerns during the years 2017 to
2021.

● Home Interview
● Questionnaire
● Secondary Data:
● For the secondary data, the pamphlets, Annual reports, Articles, News papers books and
Websites of various schemes from different banks have been obtained.

PERIOD ORF THE STDUY

The study is conducted in 45 days

24
LIMITATIONS OF STUDY:
 The study was restricted in understanding the home loan as concept so the practical
implications of the study have been difficult.
 The innovative features of the various HFIs as part of their home loan schemes but is
not a comprehensive study of their home loan schemes.
 The Take Over home loans of high interest rate for low interest rates and their
inherent risks on the banks lending profile has not been undertaken in the study.
 The mortgage home loans and its scope on the home loan lending portfolio were not
studied as this would lead into a relatively new kind of home loan segment.

25
 CHAPTER-IV

COMPANY PROFILE

26
3.1 INTRODUCTION TO THE INDUSTRY

Our Vision
To build an inclusive India by empowering the underprivileged people and
creating sustainable livelihood opportunities for them.
Our Mission
Making a meaningful difference to the lives of all its beneficiaries.
Who Are We
IB taps into the pressing needs of the marginalized communities and identifies those who are
in need of better living standards.
Our Goals
To ensure utmost convenience for our customers in their home buying experience and
making housing finance more affordable. We are equipped to tend to our customer‟s needs
through our website and mobile application with e-Home Loans, a fully online home loans
platform - from application to disbursal.
The entire gamut of our services will assist you in ensuring a smooth home buying
experience – anytime and anywhere. Combining efficiencies in products, services and
processes, we are committed to providing the best home buying experience and be your
perfect home loan partner.

Since its inception in 2006, Indiabulls Housing has been making strong inroads into the real
estate and construction sector with several residential and commercial properties to their
name. They have been instrumental in changing the landscape of several major Indian cities
including NCR.
Message from Founder Chairman
Mr Sameer Gehlaut, Chairman and Founder of the Indiabulls Group, is one of the youngest
self-made entrepreneurs and his vision in the country‟s growing real estate needs and his trust
in his team have made Indiabulls Housing a name to reckon with. Indiabulls is a
conglomerate with diverse interests including securities, housing finance and real estate.
Vision, Mission and Philosophy of Indiabulls Housing
The company‟s mission is to deliver unique spaces that will become iconic developments in
residential and commercial sectors in different parts of India. Their desire to succeed fuels
their passion for excelling in their chosen fields.

27
Corporate Social Responsibility of Indiabulls Housing
Indiabulls Housing is involved in several social programs including health, education, skill
development, rural empowerment, disaster relief, sports and transforming talukas.
Residential and Commercial Projects in Gurgaon
Residential projects along Dwarka Expressway:
 One Indiabulls, Gurgaon
 Indiabulls Enigma, Gurgaon
 Centrum Park, New Gurgaon
Commercial projects:
 One09, Gurgaon

THE HISTORY OF INDIAN HOME LOANS: -

Home loans in India have made people Buy Property in India in spite of the skyrocketing
prices. Today, we find considerable Real Estate Investment in India, either in the field of
Residential Property in India or Commercial Properties in India. Home Loans in India are
disbursed by many Banks as Loan Banking is one of the most important functions of the
Financial Services in India. Property Dealers and Real Estate Consultants in India usually
recommend that we undertake appropriate Home Loan or Mortgage Loan counseling so that
we can Buy Apartment in India at an affordable Mortgage Rate. Purchasing the home of your
dreams is not an easy task. Especially when you plan to buy a home on loan. Home loan
means that you buy a house on installments. In simpler terms when you want to own a home
and can‟t afford to pay the amount in lump sum, you can pay it in monthly installments with
an interest rate.

The interest rates of home loans are expected to go down even further according to
analysts who foresee a cut down in the rates by the RBI in the wake of the decision taken by
US Federal Reserve to cut its rates by a significant margin.

There are number of companies offer cheap home loans at a low interest rate. You can
avail loan against existing house for renovation or expansion etc. There are many
nationalized banks that offer finance for affordable housing. India Housing has put together a
comprehensive data to provide you with the cheapest Home Loans available in the market.

28
We have listed all the important housing finance institutes and some of the top home finance
banks providing lowest interest rates.

The main reason for this boom in home loan market is the change in government
policies. It is our government‟s motivation that the home loan interest rates in India have
fallen considerably. Lot many banks are offering home loans and this is available at low
EMIs (Equated monthly Installments). High EMIs are now a thing of past. Today lending rate
is in the range of 1, 00,000 term period Upto 5 years is 6.75 FD its monthly EMI 2068.As
shared earlier, taking a loan is not a difficult task. However, before taking a loan, one must
realize that the relationship with the bank will be for a longer period usually 17 to 20 years so
one must ensure faith and integrity in bank.

Taking home loans these days has become simpler. With the RBI regularly bring
down interest rates; taking home loans have become extremely easy. Housing loans which
were 18.5% to 20% a few years ago fell by 11.5% to 13%. And at present fell to 8.0% with
interest rates going down, people increasingly number apply to take these loans. Some of the
leading banks offering home loan.

In India, including INDIABULLS Bank, INDIABULLS HOUSING FINANCE PVT

LTD , Bank of Baroda, SBI, Punjab national Bank and, LIC HOUSING FINANCE.

Home Loan Procedure in India: -

Submission of Application Form: - After choosing a particular home loan, the customer
submits the application form to the housing finance company (HFC) along with other
relevant documents as required by the HFC. They comprise documents to establish income,
age, residence, employment, investments, etc. The customer also needs to hand over a cheque
for payment of an up front (non -refundable) processing fee of about .50% to 1.00% of the
loan amount to the HFC.

Validation of the Information: - In the next stage, HFCs validate the information provided
by the customer on the application form. They usually conduct checks on the residential
address of the customer, the place of employment of the customer, and credentials of the
employer.
29
Issue of Sanction Letter: -After due appraisal of customer profile, a sanction letter is issued
which contains details such as loan amount, rate of interest, annual / monthly reducing
balance, tenor of the loan, mode of repayment and general terms and conditions of the loan.

Submission of Documents: - Once the sanction letter is passed, the customer is required to
leave the entire set of original documents pertaining to the property being purchased with the
HFC as security for the loan amount sanctioned. These documents remain in the custody of
the HFC till the time the loan is fully repaid.

Validation of Property: - Prior to disbursement, the HFC also conducts a site visit to the
customer's property to ensure that all construction norms have been adhered to properly.
Once the HFC is satisfied that the property is legally and technically clear, they disburse the
loan amount.

Payment Procedure: - Once all the above-mentioned process, the borrower is entitled to
take the money from the lender party. Until such time that the entire sanctioned amount is not
drawn, the customer is supposed to pay a simple interest on the Actual Amount drawn
(without any principal repayments). The EMI payments commence only after the entire
sanctioned loan amount is drawn.

30
TABLE NO. 3.1 INTEREST RATES PROVIDED BY VARIOUS BANKS

Loan Period FD Rate of FD For Senior

Finance Institution
(in years) Interest Citizens

Up to 5 6.25 5.0
Bank of Baroda
6 to 10 6.00 6.75

Up to 5 6.10 5.0
State Bank of India
6 to 10 6.10 6.5

Up to 5 6.75 7.75
INDIABULLS
6 to 10 6.75 7.75

INDIABULLS HOUSING Up to 5 6.40 4.50

FINANCE PVT LTD 6 to 10 6.40 6.90

Up to 5 7.60 7,75
LIC Housing Finance
6 to 10 7.60 7.85

Up to 5 7.75 8.00
PNB Housing Finance
6 to 10 7.75 8.20

The above table illustrates the comparison between the interest rates from various Housing
Finance Companies and banks. It can be seen that if one wishes to go for FD loans, the bank
which gives the best deal as far as the interest rate is concerned is INDIABULLS followed by
SBI and BANK OF BARODA with the lower rates.

31
Lock-in facility by banks: -

A lock-in, also called a rate-lock or rate commitment, is a lender‟s promise to hold a

certain interest rate and a certain number of points for you, usually for a specified period of
time, while your loan application is processed.

It is important to recognize that a lock-in is not the same as a loan commitment,

although some loan commitments may contain a lock-in. A loan commitment is the
lender’s promise to make you a loaning a specific amount at some future time.
Generally, you will receive the lender’s commitment only after your loan application
has been approved.

Oral or written lock-in agreement

Some lenders have preprinted forms that set out the exact terms of the lock-in agreement.
Others may only make an oral lock-in promise on the telephone or at the time of application.
Oral agreements can be very difficult to prove in the event of a dispute. It is wise to obtain
written, rather than verbal, lock-in agreements to make sure that you fully understand how
your lender‟s lock-ins and loan commitments work and to have a tangible record of your
arrangements with the lender.

Charges of a lock-in: -

Lenders may charge you a fee for locking in the rate of interest and number of points for your
mortgage. Some lenders may charge you a fee up-front, and may not refund it if you
withdraw your application, if your credit is denied, or if you do not close the loan. Others
might charge the fee at settlement. The fee might be a flat fee, a percentage of the mortgage
amount, or a fraction of a percentage point added to the rate you lock in. The amount of the
fee and how it is charged will vary among lenders and may depend on the length of the lock-
in period.

Types of lock-in: -

Locked-In Interest Rate--Locked-In Points: - Under this option, the lender lets you lock in
both the interest rate and points quoted to you. This option may be considered to be a true

32
lock-in because your mortgage terms should not increase above the interest rate and points
that you‟ve agreed upon even if market conditions change.

Locked-in Interest Rate--Floating Points: -Under this option, the lender lets you lock in the
interest rate, while permitting or requiring the points to rise and fall (float) with changes in
market conditions. If market interest rates drop during the lock-in period, the points may also
fall. If they rise, the points may increase. Even if you float your points, your lender may
allow you to lock-in the points at some time before settlement at whatever level is then
current. (For instance, say you‟ve locked in a 10½ percent interest rate, but not the 3 points
that went with that rate. A month later, the market interest rate remains the same, but the
points the lender charges for that rate have dropped to 2½. With your lender‟s agreement,
you could then lock in the lower 2½. Points.) If you float your points and market interest rates
increase by the time of settlement, the lender may charge a greater number of points for a
loan at the rate you‟ve locked in. In this case, the benefit you might have had by locking in
your rate may be lost because you‟ll have to pay more in up-front costs. Indian Economy is
growing at a nice pace (8% p.a) which is also driving per capita income rise. The demand of
real estate has reached at a new peak according to ninth five-year plan there is a shortage of
42million houses. But in India the figures to GDP are smaller in comparison to the other
countries Contribution of housing to GDP is close to 8%. Sources: NHB

Indian Market for Home loans is more than Rs.500, 000 crore: -

Today, not only the metros are witnessing the housing crunch even the second-tier cities like-
Jaipur, Bhubaneswar, Lucknow, Trivandrum etc. are falling into the dearth of living space
and wanting for more expansion.

India Report: Indian credit report in comparison to the other Asian countries is shown in the
statistics below, which is among the lowest. It is Indian psyche that credit is termed bad,
Indian are traditionally not inclined to take credit this reflects in the figures below:

FIGURE NO. 3.1 DOMESTIC CREDIT AS A % OF GDP

Indian home loans Industry: -

33
 Indian Home loans industry is growing at a fast pace 30% per annum, this can be seen
in the stats shown below with average ticket size (loan size) and Amount disbursed is rising
every year the opportunities have become more dominant for different organization in India.
The demand drivers are fast-growing middle-class population, rise in working women
workforce, bigger aspirations of youth, Tax saving, Transparency in the real estate.

INTRODUCTION TO INDIABULLS

Indiabulls is India‟s leading Financial and Real Estate Company with a

wide presence throughout India. They ensure convenience and reliability in all
their products and services. Indiabulls has over 640 branches all over India. The
customers of Indiabulls are more than 4,50,000 which covers from a wide range
of financial services and products from securities, derivatives trading, depositary
services, research & advisory services, consumer secured & unsecured credit, loan
against shares and mortgage & housing finance. The company employs around
4000 Relationship managers who help the clients to satisfy their customized
financial goals. Indiabulls entered the Real Estate business in the year 2005 with
its group of companies. Large scale projects worth several hundred million dollars
are evaluated bythem.
Indiabulls Financial Services Ltd is listed on the National Stock Exchange (NSE),
Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market
capitalization of Indiabulls is around USD 2500 million (29thDecember, 2006).
Consolidated net worth of the group is around USD 700 million. Indiabulls and
its group companies have attracted USD 500 million of equity capital in Foreign
Direct Investment (FDI) since March 2000. Some of the large shareholders of
Indiabulls are the largest financial institutions of the world such as Fidelity Funds,
Goldman Sachs, Merrill Lynch, Morgan Stanley and FarallonCapital.

In middle of 2099, when e-commerce was just about starting in India, Sameer Gehlaut
and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct
securities company with a NSE membership and started offering brokerage
services.A Few month later, their friend Saurabh Mittal also joined them. By
December 2099, the company embarked on its journey to build one of the first
online platforms in India for offering internet brokerage services. In January 2000,

34
 the 3 founders incorporated Indiabulls Financial Services and made it as the
flagshipcompany.

In mid-2000, Indiabulls Financial Services received venture capital funding from Mr

L.N. Mittal &Mr. Harish Fabiani. In late 2000, Indiabulls Securities, a subsidiary
of Indiabulls
Financial Services started offering online brokerage services and simultaneously
opened physical offices across India. By 2003, Indiabulls securities had
established a strong pan India presence and client base through its offices and on
theinternet.

In September 2004, Indiabulls Financial Services went public with an IPO at Rs 20 a

share. In late 2004, Indiabulls Financial Services started its financing business
with consumer loans. In March 2005, Indiabulls Properties Private Ltd, a
subsidiary of Indiabulls Financial Services, participated in government auction of
Jupiter Mills, a defunct 11-acre textile mill owned by NTC in Lower Parel,
Mumbai. Indiabulls Properties Private Ltd won the mill in auction and that
purchase started Indiabulls real estate business. A few months later, Indiabulls
Real Estate company pvt ltd bought Elphinstone mill in Lower Parel, another
textile mill auctioned byNTC.
With real estate business gaining size, Indiabulls Financial Services demerged the real
estate business under Indiabulls Real Estate and each shareholder of Indiabulls
Financial Services received additional share of Indiabulls Real Estate through the
demerger. Subsequently, Indiabulls Financial Services also demerged Indiabulls
Securities and each shareholder of Indiabulls Financial Services also received a
share of Indiabulls Securities.
In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls
Power, to build power plants and started work on building Nashik & Amrawati
thermal power plants. Indiabulls Power went public in September 2009.
Today, Indiabulls Group has a net worth of Rs 17,796 Crore & has a strong presence
in important sectors like financial services, power & real estate through
independently listed companies and Indiabulls Group continues its journey of
building businesses with strong cash flows.

35
MANAGEMENT TEAM

Indiabulls Group

 Mr. Rajiv Rattan - ViceChairman

 Mr. Saurabh Mittal - ViceChairman

 Mr. Gagan Banga - GroupSpokesperson

 Mr. Ashok Kacker - GroupPresident

 Mr. Saket Bahuguna - GroupCLO

 Mr. Ashok Sharma - GroupCFO

 Mr. Ajit Mittal - GroupDirector

 Mr. Gurbans Singh - GroupDirector

 Mr. Tejinderpal Singh Miglani - GroupCIO

Indiabulls Financial Services Limited

 Mr. Gagan Banga -CEO

 Mr. Ashwini Kumar Hooda -DMD

Indiabulls Real Estate Limited

 Mr. Vipul Bansal -CEO

 Mr. Narendra Gehlaut - JointMD

Indiabulls Power Limited

 Mr. Ranjit Gupta -CEO

 Mr. Murali Subramanian -COO

Indiabulls Securities Limited

 Mr. Divyesh Shah -CEO

 Mr. Vijay Babbar –DMD

36
 India bulls supports Money life Foundation in Empowering
Investors

“Money life Foundation” in collaboration with Indiabulls, recently organized an

„Investor, Empower Yourself‟ seminar, which was held at the lush Town &
Country Club at New Gurgaon, in the National Capital Region (NCR), on
Saturday, 7th May 2011. This was the first occasion for Money life Foundation to
venture into other territories outside Maharashtra. Indiabulls played a major role
in helping this event happen successfully.
The event witnessed over 300 attendees not only from Gurgaon but also from other
parts of National Capital Region (NCR), Delhi, Allahabad, Ludhiana, Chandigarh
& other cities from northern region of India. The venue was fully packed with
eager & curious investors. “Money life Foundation” expressed its gratitude
towards helpful team of Indiabulls led by Mr. Gagan Banga, CEO - Indiabulls
Financial Services Ltd, for making this event such a huge success.
The event started with introductory remarks & guidance by Mr. Gagan Banga, CEO -
Indiabulls Financial Services Ltd. Mr. Veeresh Malik, Consulting Editor, Money
life, Delhi gave a brief introduction about Money lifeFoundation. Then audience
was guided by Sucheta
Dalal, Trustee - Money life Foundation and Managing Editor- Money life, on How to
be Safe with your money & Debashis Basu, Trustee - Money life Foundation and
Editor- Money life about How to be smart with your investments. Mr. Sachin
Choudhary, Director & Business Head - Indiabulls Housing Finance Ltd, talked
about Do's and Don‟ts of Housing Mortgages. Ms. Sucheta Dalal also explained
the importance & procedure of Wills & Nominations.
This event helped people in understanding how to become an aware and empowered
investor. The attendees included both finically literate & new investors. They
posted number of intelligent questions which were adequately answered by all the
speakers. Empowering today‟s investors by creating awareness and guiding them
in taking wise decisions when it comes to money or investments was the main
objective of „Investor, Empower Yourself‟ seminar. During the Panel Discussion
with the panel members Sucheta Dalal, Debashis Basu & Sachin Choudhary, quite
a few interesting & informative issues regarding Investments were discussed. Mr.
37
 Monu Ratra, National Sales Manager - Indiabulls housing Finance Ltd gave Vote
of Thanks.
This event received many request and suggestions from audience about continuing
with such events all over India so that citizens of India will be more empowered
investors & ultimately nation will benefit from it. There were some requests from
audience to telecast further events live on television & internet so that those who
are unable to attend the event will also get the guidance. The knowledge shared
about the investments during the event was well appreciated by all.
Moneylife Foundation has been instrumental in promoting financial literacy & pro-
customer advocacy in India. Money life Foundation has been organizing such
events at the Money life Knowledge Centre in Mumbai, and also in various cities
across Maharashtra. The Foundation has completed 16 months of spreading
financial literacy & has hosted around 49 speakers and 61 events. Currently, more
than 5,000 people are members of the Foundation.
After the seminar, Indiabulls received feedbacks from some attendees congratulating
Indiabulls‟ team about the success of seminar. Many of the attendees mentioned
that they are looking forward to such seminars in future.
Indiabulls has been participating in such Corporate Social Activities with many other
socially aware groups and trusts & Indiabulls is committed to continue in doing so
in future.

38
Awards and Accolades
Year

2019


Ranked 20th among India’s Best Companies to Work For 2019
A study by Economic Times & Great Place to Work ® Institute
28 Jun


India’s Best Workplaces in BFSI-2019
By Great Place to Work ® Institute
28 Jun

39
India’s Best Workplaces in NBFC- 2019
By Great Place to Work ® Institute
28 Jun


Best Social Media Brand in the BFSI sector (Financial Services)
At the SAMMIE 2018
31 Jul


Awards for Annual Report, Brand Film and Table Calendar 2017-18
At the 8th Annual Corporate Collateral Awards 2018 by PRCI
10 Mar


Award for ‘Gold Level – Arogya World Healthy Workplace’
At the „Arogya World Healthy Workplace Conference & Awards‟

40
01 Nov


Award for 'Excellence in Cost Management'
At the „14th National Awards for Excellence in Cost Management 2016‟
18 Jul


SKOCH Order-of-Merit Award (Housing Finance)
At the 48th SKOCH Summit 2017
19 Jun

41
Award for ‘Most Innovative Citizen Engagement Through Technology’
At the Business World Digital India Summit
26 May


Award for ‘Best use of Digital Media – 100% Dad Campaign’
At the „Abby‟s 2017‟
08 Apr


Certificate for ‘Risk Management’
At the „Golden Peacock Awards‟
17 Feb


Mr. Nafees Ahmed has been recognised as one of ‘India’s Top 50 CIOs’

42
At the „India‟s Best CIOs – 3rd Edition‟
16 Feb

43
 CHAPTER-V
DATA ANALYSIS
AND
INTERPRETATIONS

44
 AGE GROUP CUSTOMERS.
TABLE 4.1

AGE GROUP OF NO OF % OF
CUSTOMERS RESPONDENTS RESPONDENTS

21- 35 54 54%

36-50 36 36%

51-65 10 10%

TOTAL 100 100%

.GRAPH 4.1

120

100

80

60

40 NO OF
% OF RESPONDENTS
20

INTERPRETATION:
Analysis from the above table and graph we cans see
 Majority of respondents 54% of them fall under 21-35 years of age group.
 36% of the respondents are 36-50 years of age group.
 10% of the respondents are 51-65 years of age group.

45
GENDER CLASSIFICATION OF SURVEYED RESPONDENTS
TABLE 4.2

CATEGORY NO. OF % OF
RESPONDENTS RESPONDENTS
Male 60 60%

Female 40 40%

Total 100 100%

GRAPH 4 .2

120

100

80
NO. OF RESPONDENTS
60
% OF
40 RESPONDENTS

20

0
Male Female Total

INTERPRETATION:
From the table and graph above it can be seen that
 60% respondents are Male.
 40% respondents are Female.

46
 EDUCATION QUALIFICATION OF CUSTOMERS
TABLE 4.3

Category No. of Respondents Percentage

Graduate 50 50%

Post Graduate 28 28%

Under graduate 22 22%

Total 100 100%

GRAPH 4.3

120

100

80

60
No. of Respondents
40 Percentage

20

0
Graduate Post Under Total
Graduate graduate

INTERPRETATION:
From the table and graph above it can be seen that
 50% respondents are under graduate.
 28% respondents are Graduate.
 22% respondents are Post grade.

47
 MARITALSTATUS OF THE CUSTOMERS
TABLE 4.4

NO. OF % OF
MARITAL STATUS RESPONDENTS RESPONDENTS

MARRIED 58 58%

UNMARRIED 42 42%

TOTAL 100 100%

GRAPH4.4

120

100

80
NO. OF
60 RESPONDENTS
% OF RESPONDENTS
40

20

0
MARRIED UNMARRIED TOTAL

INTERPRETATION:
From above table and graph we can see that
 54% of the respondents are married.
 42% of the respondents are unmarried.

48
 CUSTOMERS PROFILE OF SURVEYED RESPONDENTS
TABLE 4.5

OCCUPATION NO. OF % OF
OF CUSTOMERS RESPONDENTS RESPONDENTS
Working Professional 20 20%

Business 26 26%

Private Employee 48 48%

Government Employee 6 6%

TOTAL 100 100%

GRAPH4.5

120
100
80
60
40 NO. OF
20 RESPONDENTS

0 % OF
RESPONDENTS

INTERPRETATION:
Analysis from the above table and graph we can see that Occupation of Respondents 20% are
Working Professional and 26% Business ,48% are Private Employees and 6% are Government
Employees.

49
 ANNUAL HOUSEHOLD INCOME
TABLE 4.6

CATEGORY NO. OF % OF
RESPONDENTS RESPONDENTS
Less than 2 lakhs 44 44%
Between 2 to 4 lakhs 22 22%
Between 4 to 6 lakhs 24 24%
Between 6 to 8 lakhs 10 10%
TOTAL 100 100%

GRAPH 4.6

120

100

80

60 NO. OF
RESPONDENTS
40 % OF
RESPONDENTS
20

0
Less than 2 Between 2 Between 4 Between 6 TOTAL
lakhs to 4 lakhs to 6 lakhs to 8 lakhs

INTERPRETATION:
Analysis from the table and graph above it can be seen that
 44% respondent‟s annual household income is less than 2 lakhs.
 22% respondent‟s annual household income is between 2 to 4lakhs.
 24% respondent‟s annual household income is between 4 to 6 lakhs.
 10% respondent‟s annual household income is between 6 to 8 lakhs

50
 DO YOU KNOW ABOUT INDIABULLS HOUSING FINANCE PVT LTD
TABLE 4.7

CATEGORY NO. OF % OF
RESPONDENTS RESONDENTS
YES 80 80%

NO 20 20%

TOTAL 100 100%

GRAPH 4.7

120

100

80
NO. OF RESPONDENTS
60
% OF
40 RESONDENTS

20

0
YES NO TOTAL

INTERPRETATION:
Analysis from the above table and graph above it can be seen that
 80% respondents are known about ICICI BANK
 10% respondents Don‟t known about ICICI BANK

51
 OPINION OF ICICI HOME LOAN SCHEMES
TABLE4.8

CUSTOMER NO. OF % OF
OPINIONS RESPONDENTS RESPONDENTS
Amount of Loan 26 26%

Installments 36 36%

Repayment Facilities 20 20%

Interest Rates 18 18%

TOTAL 100 100%

GRAPH 4.8

120
100
80
60
40 NO. OF
RESPONDENTS
20
% OF
0 RESPONDENTS

INTERPRETATION:
From the above table and graph the customers opinion about ICICI HOME LOANS SCHEMES
such as 26% respondents say that Amount of loan and 36% respondents say that Installments and 20%
say Repayment Facilities and 18% say Interest Rates.

52
 TYPE OF HOME LOAN BORROWED FROM BANK
TABLE 4.9

TYPES OF NO. OF % OF
HOME LOANS RESPONDENTS RESPONDENTS
HOME 44 44%
CONSTRUCTION
HOME 24 24%
IMPROVEMENT
LAND 16 16%
PURCHASE LOAN
HOME EXTENSION 16 16%

TOTAL 100 100%

120

100

80

60
NO. OF
40
RESPONDENTS
20 % OF
0 RESPONDENTS

GRAPH 4.9
INTERPRETATION:
From the above table and graph we see that Type of home loan preferred by customers Home
construction loan 44% respondents prefer and 24% of them prefer home Improvement loan and 16%
prefer Land purchase loan and 16% customers prefer for Home Extension loan.

53
 REASONS FOR GETTING HOME FINANCED BY CUSTOMERS
TABLE 4.10

VARIOUS REASONS NO. OF % OF

RESPONDENTS RESPONDENTS
Non-Availability of funds 30 30%

Tax Benefits 32 32%

Reluctancy to pay cash in 20 20%

One Go
Any Other 18 18%

TOTAL 100 100%

120
100
80
60
40
NO. OF
20 RESPONDENTS
0 % OF
RESPONDENTS

GRAPH 4.10
INTERPRETATION:
To interpret the response of the customers the table and graph shows that most of the customers find
the problem in availability of funds i.e. 30% of respondents and most of the customers prefer get
housing loan financed from bank for tax benefits that is 32%. Huge number of customers found
problem Reluctancy to paying cash in one go 20% customers. And 18% of few respondents prefer
getting home financed from bank for any other reasons (Personal). This was the response of
customers because number of people find a problem of availability of funds which works as an
obstacle in owning a dream home.

54
 SOURCES OF INFORMATION ABOUT HOME LOAN SCHEMES
TABLE 4.11

SOURCES OF NO. OF % OF
INFORMATION RESPONDENTS RESPONDENTS
News paper 20 20%

Hoardings/Pamphlets 22 22%

Word of Mouth 32 32%

Media Advertisements 26 26%

TOTAL 100 100%

120
100
80
60
40 NO. OF
20 RESPONDENTS

0 % OF
RESPONDENTS

GRAPH 4.11
INTERPRETATION:
From the above table and graph the data shows that around 20% of customers got
Information from source of News paper and 22% of them got information from Hoardings/Pamphlets.
And 32% of respondents got information of 'Word of Mouth' which includes information from
friends, relatives, colleagues etc.26% of customers got information about home loans schemes from
magazines, any media advertisements such as TV, YouTube.

55
 FROM WHERE YOU HAVE GOT YOUR HOME FINANCED
TABLE 4.12

VARIOUS BANKS NO. OF % OF

PREFERECE RESPONDENTS RESPONDENTS
INDIABULLS 14 14%
HOUSING FINANCE
PVT LTD
SBI 18 18%

INDIABULLS 50 50%
HOUSING FINANCE
PVT LTD
PUNJAB NATIONAL 6 6%
BANK
ANY OTHER 12 12%

TOTAL 100 100%

GRAPH 4.12

120
100
80
60
40 NO. OF
RESPONDENTS
20
% OF
0 RESPONDENTS

INTERPRETATION:
The analysis from table and graph showed that a large number of customers prefer INDIABULLS
HOUSING FINANCE PVT LTD as compared to others. The data shows that 14% of customers took
loan from INDIABULLS HOUSING FINANCE PVT LTD , 18% of customers from SBI BANK,
50% of customers took loan from INDIABULLS HOUSING FINANCE PVT LTD and 6%
Customers took loan from Punjab National Bank and 12% of customers fall under the category of
'Any other' which included LIC Housing finance ltd, Axis bank, Bank of Baroda, Standard Charted
Bank, Aditya Birla Capital etc. The data shows that most of people prefer INDIABULLS HOUSING
FINANCE PVT LTD compared to public sector banks and other private banks. This is because of the
extra services provided by ICICI. However, there is less difference in figures of INDIABULLS
HOUSING FINANCE PVT LTD and SBI. But there is considerable difference in figures of the two
private sector banks i.e. INDIABULLS HOUSING FINANCE PVT LTD and INDIABULLS
HOUSING FINANCE PVT LTD . As ICICI is the market leader in the home loans sector. This may
be the reason for such difference in Punjab national bank percentage and Other Bank's percentage.

56
Another reason for specialized services in home loans, more amounts of loans, and efficient query
handling. However, the analysis showed that the people prefer INDIABULLS HOUSING FINANCE
PVT LTD for home loan because of their services and excessive facilities compared to other banks.

CUSTOMERS PREFERENCE TOWARDS LOAN TERM PERIOD

TABLE 4.13
LOAN TERM NO. OF % OF
PERIOD RESPONDENTS RESPONDENTS
Upto 5 years 52 52%

6 – 10 years 22 22%

11 - 15 years 16 16%

16 - 20 years 10 10%

TOTAL 100 100%

GRAPH 4.13

120

100

80

60 NO. OF
RESPONDENTS
40 % OF
RESPONDENTS
20

0
Upto 5 6 – 10 11 - 15 16 - 20 TOTAL
years years years years

INTERPRETATION:
Thus from the above table and graph we can see that Customers preference towards
Home loans Term Period 52% Most of the respondents prefer Upto 5 years and 22% of respondents
prefer 6-10 years of term period and 16 % of customers prefer 11-15 years of loan term period. Very
less respondents prefer 16-20 years of loan term period.

57
HAVE YOU TAKEN ANY HOME LOAN FROM INDIABULLS HOUSING FINANCE PVT
LTD
TABLE 4.14
NO. OF % OF
CATEGORY RESPONDENTS RESPONDENTS
One year before 50 50%

Two years before 14 14%

More than three years 16 16%

before
Not taken any home 20 20%

loan
TOTAL 100 100%

GRAPH 4.14

120
100
80
60
40
20 NO. OF
% OF
0

INTERPRETATION:
From the above table and graph the respondents who taken home loan from ICICI bank are most of
them 50% One year before and followed by respondents who taken home loan was 14% two years
before and 16% of respondents taken home loan from bank was More than three years before. Few
respondents i.e., 20% of respondents who not taken any home loan till date.

58
 CUSTOMERS PREFERENCE OF LOAN AMOUNT
TABLE 4.15

LOAN AMOUNT NO. OF % OF

RESPONDENTS RESPONDENTS
Up to 30 lakhs 56 56%

30 lakhs to 75 lakhs 32 32%

Above 75 lakhs 12 12%

TOTAL 100 100%

GRAPH 4.15

120

100

80

60 NO. OF
RESPONDENTS
40 % OF
RESPONDENTS
20

0
Up to 30 30 lakhs to Above 75 TOTAL
lakhs 75 lakhs lakhs

INTERPRETATTION:
Analysis from the above table and graph Customers preference toward loan amount
 Home Loans Amount 56% Most of them prefer Upto 30lakhs.
 32% of the respondents prefer 30lakhs -75lakhs of loan amount.
 12% of the respondents prefer above 75 lakhs of loan amount.

59
CUSTOMERS REASONS FOR TAKING HOME LOANS FROM ICICI
BANK
TABLE 4.16
CUSTOMERS NO. OF % OF
REASONS RESPONDENTS RESPONDENTS
Faster Processing 28 28%

Interest Rates 32 32%

Margin Amount 30 30%

Brand Image of the 10 10%

Bank
TOTAL 100 100%

GRAPH 4.16

120

100

80

60

40 NO. OF
RESPONDENTS
20
% OF
0 RESPONDENTS

INTERPRETATION:
The analysis from above table and graph shows that the customers reasons for taking home loans
from INDIABULLS HOUSING FINANCE PVT LTD it gives 28% of faster processing prefer by
respondents and legal proceedings,32% of interest rates most of them prefer, proceeding services of
margin amount of 30% by respondents,10% respondents prefer brand Image of the bank.

60
 CUSTOMERS RATE TOWARDS EMI OF INDIABULLS HOUSING FINANCE PVT LTD
TABLE 4.17

CUSTOMERS NO. OF % OF
RATE RESPONDENTS RESPONDENTS
Satisfactory 64 64%

Dissatisfactory 14 14%

Neutral 22 22%

TOTAL 100 100%

GRAPH 4.17

120

100

80

60
NO. OF
40 RESPONDENTS
20 % OF
RESPONDENTS
0

INTERPRETATION:
Analysis from the above table and graph Customers rate towards the EMI of INDIABULLS
HOUSING FINANCE PVT LTD .
 64% of respondents are satisfactory with the EMI of ICICI
Bank.
 14% of respondents are dissatisfactory with the EMI of ICICI
Bank.
 22% of respondents are Neutral with the EMI of INDIABULLS HOUSING FINANCE
PVT LTD .

61
CUSTOMERS RATE FIXED INTEREST OF INDIABULLS HOUSING FINANCE PVT LTD
TABLE 4.18
NO. OF % OF
CATEGORY RESPONDENTS RESPONDENTS
Satisfactory 76 76%

Dissatisfactory 24 24%

TOTAL 100 100%

GRAPH 4.18

120

100

80

60
NO. OF
40 % OF

20

0
CATEGORY Satisfactory TOTAL
Dissatisfactory

INTERPRETATION:
The analysis from the above table and graph represents the customers rate towards the interest rates of
INDIABULLS HOUSING FINANCE PVT LTD .

 76% of the respondents are Satisfied with the Interest rates of

INDIABULLS HOUSING FINANCE PVT LTD
 24% of the respondents are Dissatisfactory with the Interest rates of
INDIABULLS HOUSING FINANCE PVT LTD .

62
CUSTOMERS OPINION ON DURATION OF TIME TAKEN BY BANK FOR
SANCTION OF HOME LOAN
TABLE 4.19
DURATION OF TIME NO. OF % OF
RESPONDENTS RESPONDENTS
0 -1 Month 28 28%

1 - 2 Months 42 42%

1 - 3 Months 18 18%

More than 3 Months 12 12%

TOTAL 100 100%

GRAPH 4.19

120

100

80

60 NO. OF
RESPONDENTS
40
% OF RESPONDENTS
20

0
0 -1 1-2 1-3 More
Month Months Months than 3 TOTAL
Months

INTERPRETATION:
The analysis from the above table and graph shows that customers opinion on duration of time taken
by bank for sanction of home loans.
 28% of the respondents says 0-1 month of time.
 42% majority respondents says 1-2 months of time.
 18% of respondents says 1-3 months of time.
 12% of respondents says more than 3months of time.

63
CUSTOMERS RATE INTEREST CHARGED BY VARIOUS BANKS
TABLE 4.20

CATEGORY NO. OF % OF
RESPONDENTS RESPONDENTS
Satisfactory 52 52%

Dissatisfactory 20 20%

Neutral 28 28%

TOTAL 100 100%

GRAPH 4.20

120

100

80

60

40 NO. OF RESPONDENTS
% OF RESPONDENTS
20

INTERPRETATION:
The analysis from above table and graph shows that customers rate the Interest rates of various banks.
 52% Majority of the respondents say they are Satisfactory with Interest rates.
 20% of the respondents say they are Dissatisfactory with Interest rates.
 28% of the respondents say Interest Rates are Neutral.

64
CUSTOMERS RATE DOCUMENTATION FACILITES OF HOME LOANS
TABLE 4.21

CATEGORY NO. OF % OF
RESPONDENTS RESPONDENTS
Justified 78 78%

It is Too Much 22 22%

TOTAL 100 100%

GRAPH 4.21

120

100

80
NO. OF
60 RESPONDENTS
% OF
40 RESPONDENTS

20

0
Justified It is Too Much TOTAL

INTERPRETATION:
The analysis from the above table and graph shows the Customers rate towards the
Documentation facilities of Home Loans.
 78% of the respondents say justified with documentation formalities.
 22% of the respondents say that Documentation formalities it is too much.

65
 CUSTOMERS OPINION ON PROCESSSING FEE CHARGES OF
BANKS ARE HIGH
TABLE 4.22

CATEGORY NO. OF % OF
RESPONDENTS RESPONDENTS
Yes 44 44%

NO 24 24%

Neutral 32 32%

TOTAL 100 100%

GRAPH 4.22

120

100

80
NO. OF
60 RESPONDENTS
% OF
40 RESPONDENTS

20

0
Yes NO Neutral TOTAL

INTERPRETATION:
The analysis from above table and graph shows that Customers opinion onprocessing fee charges of
Banks are high
 44% Majority of the respondents say YES processing fee charges are High
 24% of the respondents say NO.
 32% of respondents say it is Neutral.

66
 QUICK RESPONSE TO COMPLIANTS BY INDIABULLS HOUSING FINANCE PVT
LTD TABLE 4.23

CATEGORY NO. OF % OF
RESPONDENTS RESPONDENTS
YES 64 64%

NO 36 36%

TOTAL 100 100%

GRAPH 4.23

120

100

80
NO. OF
60 RESPONDENTS
% OF
40 RESPONDENTS

20

0
YES NO TOTAL

INTERPRETATION:
The analysis from the above table and graph shows the Customers opinion on Quick response to
complaints by INDIABULLS HOUSING FINANCE PVT LTD .

 64% Majority of respondents say YES that INDIABULLS HOUSING FINANCE PVT
LTD response to the Complaints quickly.
 36% of respondents say NO.

67
WILL YOU REFER TO YOUR FRIENDS AND RELATIVES ABOUT
INDIABULLS HOUSING FINANCE PVT LTD HOME LOAN SCHEMES

TABLE 4.24
CATEGORY NO. OF % OF
RESPONDENTS RESPONDENTS
YES 76 76%

NO 24 24%

TOTAL 100 100%

GRAPH 4.24

120

100

80
NO. OF RESPONDENTS
60
% OF
40 RESPONDENTS

20

0
YES NO TOTAL

INTERPRETATION:
The data analysis from above table and graph shows that customers refer to their friends and relatives
about ICICI home loan schemes.

 76% Majority of respondents say YES they refer to their friends and relatives.
 24% respondents say NO.

68
 CUSTOMERS STASTIFICED BY INDIABULLS HOUSING FINANCE PVT LTD HOME
LOAN
PRODUCTS AND SERVICES
TABLE 4.25
NO.OF RESPONDENTS % OF
CATEGORY RESPONDENTS
YES 80 80%

NO 20 20%

TOTAL 100 100%

GRAPH 4.25

120

100

80

60
NO.OF RESPONDENTS
40 % OF

20

0
CATEGORY YES NO
TOTAL

INTERPRETATION:
The data analysis from above table and graph shows Customer Satisfaction levels towards preference
of INDIABULLS HOUSING FINANCE PVT LTD home loans, Products and services.
80% of Customers are satisfied by INDIABULLS HOUSING FINANCE PVT LTD Products and
Services.20% of Customers are not satisfied by Bank. So good response to reliability and
transparency services of INDIABULLS HOUSING FINANCE PVT LTD . It is ranked no.1 by the
percent of respondents.

69
 CHAPTER-VI
FINDINGS, SUGGESSTIONS AND
CONCLUSION

70
FINDINGS

 Create awareness: The Company has to take care of awareness creation about the
products and services among the customers about home loan schemes.
 Charges: The bank has to reduce the processing charges.
 The process is somewhat late to sanction of a home loan due to documentation
formalities.
 The bank has to reduce their interest rates on home loan products and services.
 The bank has to identify the potential customers.
 Bank must improve marketing promotion strategies.
 Company should consider the present competition and should act according to the
customer needs.
 About 54% of the respondents were middle aged, i.e. 21 to 35 years of age.
 The sample was dominated by males. (60%).
 A majority of (50%) respondents were graduates.
 Exactly 48% of the respondents were private employees and 26% of them were business,
while 26% were from service class.
 The maximum number of respondents (44%) had annual income of less than 2lakhs.
 And 22% had income 2-4 Lakhs.12% respondents get 4-6 lakhs income lived in nuclear
family. 5% of them annual income 6-8 lakhs.

71
LIMITATIONS OF STUDY:
 The study was restricted in understanding the home loan as concept so the practical
implications of the study have been difficult.
 The innovative features of the various HFIs as part of their home loan schemes but is
not a comprehensive study of their home loan schemes.
 The Take Over home loans of high interest rate for low interest rates and their
inherent risks on the banks lending profile has not been undertaken in the study.
 The mortgage home loans and its scope on the home loan lending portfolio were not
studied as this would lead into a relatively new kind of home loan segment.

72
SUGGESSTIONS

1. Create awareness: The Company has to take care of awareness creation about the products and
services among the customers.

2. Charges: The Company has to reduce the administration charges.

3. The company has to take steps process of sanction of loan should make bit faster so that customers
get on time.

4. The company has to reduce their interest rates on home loan products and services.

5. The company has to identify the potential needs of customers.

6. Io attract the customers for better services new offers would be required and increase in advertising.

7. Company should consider the present competition and should act according to customer‟s
preferences at low EMI rates as per their requirements.

8. If there are any hidden charges than that must be disclose to customer before giving loan to them.

9. It is the duty of the bank to disclose all the material facts regarding advance product, like interest
charged, repayment period, other charges etc.

73
 CONCLUSION

1. The study reveals that more number of people are interested to take a home loan from
INDIABULLS HOUSING FINANCE PVT LTD to construct their homes and improvements of their
homes. Home loans have long period when compare to other personal loans and other loans. So
peoples are confused to take a home loan. The interest rates also somewhat high when compare to
other banks. Even though the interest rates are high peoples are willing to take a loan from
INDIABULLS HOUSING FINANCE PVT LTD due to some reasons. The loan sanction process is
slow when compare to other banks. For processing of documentation it will take longer time when
compare to other banks.

74
 BIBLIOGRAPHY

BOOKS

 Arasli, H., Smadi, S.M., and Katircioglu, S T (2005) Customer Service Quality in the
Greek Cypriot banking industry Managing Service Quality 15(1), 41-56.
 As quoted by the Indian Central Bank enquiry committee (1931), chapter 11, p.11
 Gangadhar (1997), ”National banking and Economic Development”, Vora & Co.
Publications Pvt. Ltd. Bombay
 Gronroos, C. (2000). Service Management and Marketing: A Customer Relationship
Management Approach, (2nd ed.). West Sussex: John Wiley & Sons, Ltd.
JOURNALS

 Mgr .peter Teply, “Credit risk management in Czech banks”, European Scientific
journal, Volume: 20 Issue: 4, 2010.
 Oledh, Jackson, “The impact of credit risk management on financial performance of
commercial banks” Journal of emerging issues in economics, Volume: 12 Issue: 3,
2011
 Al-Smadi, Mohammad Oqlah Mahamoud, “credit risk, microeconomic and bank
specific factors in Jordanian banks”, the international journal of banking and finance,
Volume: 12 Issue: 2012
NEW PAPERS
 economic times
 business standard
 financial express
 times of India

WEBSITES:-

 https://www.sbi.com
 https://www.loansnews.info/Homeloan/sbi-homeloans/
 https://www.sbi.com/loans/hm-loan-documents.asp

75
 QUESTIONAIRE

Q1. Age group of Customers

A 21-35 years
B. 36-50 years

C. 51-65 years

Q2. Gender Classification

A. Male
B. Female

Q3. Educational qualification

A. Graduate
B. Post graduate
C. Under graduate

Q4. Marital Status

A. Married
B. Unmarried

Q5. Occupation
A .Working professional
B. Business
C. Private Employee
D. Government Employee

Q6. Annual House hold Income

A .Less than 2 lakh
B. 2 lakh to 4lakh
C. 4 lakh to 6 lakh
D. 6 lakh to 8 lakh

76
Q7. Do you know about INDIABULLS HOUSING FINANCE PVT LTD HOME LOAN?
A. Yes
B.NO

Q8. Various Opinion about Home Loan Schemes by customers?

A. Amount of loan
B. Installments
C. Repayments facilities
D. Installments

Q9. Type of Home Loan Borrowed from Bank by customers.

A. Home Construction
B. Home Improvement
C. Land purchase loan
D. Home Extension

Q10. Reasons for getting the Home Financed?

A. Non-availability of Funds
B. Tax benefits
C. Reluctancy to pay cash in One Go
D. Any other

Q11. Sources of information about Home Loans Schemes

A. News paper
B. Banners / Hoardings / Pamphlets
C. Word of Mouth
D. Media Advertisement

Q12. From where you have got your Home Financed?

A. INDIABULLS HOUSING FINANCE PVT LTD
B. SBI
C. INDIABULLS HOUSING FINANCE PVT LTD
D. Punjab National Bank

77
Q13. Loan Term Period
A. Up to 5years
B. 6-10 years
C. 11-15years
D. 16-20years

Q14. When you have taken Home Loan from ICICIBANK?

A. One Year Before
B. Two to Three Years Before
C. More than Three Years Before
D. Not yet taken any home loan

Q15.Prefernce of Loan Amount

A. Upto 30 Lakhs
B.30 lakhs -75 lakhs
C.75lakhs above

Q16.Reasons for taking Home Loans from INDIABULLS HOUSING FINANCE PVT LTD
A. Faster processing
B. Interest Rates
C. Margin Amount
D. Brand image of the Bank

Q17. How do you rate the EMI of INDIABULLS HOUSING FINANCE PVT LTD
A. Satisfactory
B. Dissatisfactory
C. Neutral

Q18. Fixed Interest rates of Various Banks.

A. Satisfactory
B. Dissatisfactory

Q19.Duration of Time taken by bank for sanction of a Home Loan

A. 0-1 month
B. 1-2 month
C. 1-3 month
D. More than 3 months

78
Q20.How you rate the Interest rates of charged by Bank
A. Satisfactory
B .Dissatisfactory
C. Neutral

Q21.How you rate Documentation Formalities

A. Justified
B. Too much

Q22.Do you think processing charges of the Bank are HIGH

A. Yes
B. NO
C. Neutral

Q23.Quick Response to the compliant by INDIABULLS HOUSING FINANCE PVT LTD

A. Yes
B. NO

Q24.Will you refer your Friends and Relatives about INDIABULLS HOUSING FINANCE PVT LTD
A. Yes
B. NO

Q25. Satisfied by INDIABULLS HOUSING FINANCE PVT LTD home loan Products and Service
A. Yes
B. NO

79