PROJECT REPORT ON COMPARITIVE STUDY ON HOME LOAN OF HDFC & AXIS BANK

Report Submitted In the Partial Fulfillment For The Masters of Business Administration (2011-2013)

SUBMITTED TO: Mr. Amit Garg Asst. Professor Mgmt. Dept

SUBMITTED BY:Ricky Setia MBA 4th Sem Roll No.1174489

MIMIT, MALOUT

DECLARATION
I undersigned hereby declare that the project report submitted to my College MIMIT, MALOUT. In partial fulfillment for the degree of Masters of business administration on Comparative Study on home loan of HDFC & AXIS Bank is a result of my own work under continuous guidance and kind co-operation of our college faculty members. I have not submitted this report to any other university for the award of degree.

Ricky

ACKNOWLEDGEMENT

A successful completion of an endeavour is very gratifying experience. This is the moment where I feel indebted to people who have supported me at different point in this project. I would like to express my heartfelt gratitude and thankfulness to the almighty god for blessing me with the opportunity and ability to work on this project.

I am thankful to J.J.Maini, (HOD of Management Department ) who provided us the right kind of environment to work on this project. My sincere thanks to Mr. Amit Garg (Asst professor) for his invaluable guidance in completing this project.

I would also like to thank my parents for their constant support and providing me everything I required for study all the time. They are the one who should be credited for my successful completion of project.

I hope this project provides readers meaningful information about Indian home loan market and customer trends.

TABLE OF CONTENTS

CHAPTER NO.

TITLE

PAGE NO.

INTRODUCTION TO SUBJECT

INTRODUCTION TO COMPANY

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LITERATURE REVIEW

RESEARCH METHODOLOGY

36

DATA ANALYSIS &INTERPRETATION

39

FINDIGS, RECOMMENDATIONS & CONCLUSION

BIBLIOGRAPHY

QUESTIONNAIRE

CHAPTER 1 Introduction to Subject

Introduction
Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a home on loan. Home loans means that you buy a house on installments. In simpler terms when you want to own a home and cannot afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate. There are number of companies offer cheap loans at a low interest rate You can avail loan against existing house for renovation or expansion etc. The demand for home loans will not sag much. The reason is a substantial rise in the income-generating capability of Indian youth. So this particular section will keep the housing loan demand high and increased lending rates can only shelve their plans for some time.

Take a house loan and let the monthly rent (easily converted into affordable EMIs) build dream home.

Industry overview: In India there are many prominent nationalized banks and private banks that offer
easy home loans to the prospective buyers. These banks offer Home loans to the prospective buyers to purchase either fresh or old house. Further loans are also provided for home upgrading or repair, extension of houses etc.The facilities provided by these banks include Low interest rates, Door-step service, Can transfer your existing high-interest rate loan, Free personal accident insurance, Up to 100% funding for selected properties.

HOME LOAN
Home loans are loans you have access to, depending on whether you want to buy or build a house and can also be used to repair or extend an existing house. Who can avail of these loans? According to lending institutions, any Indian resident who is over 21 years of age at the beginning of the loan and below 65at its maturity can avail of the loan. Salaried Employees as well as Self- Employed citizens can apply. Why should one option for a loan to buy a house? Taking a loan seems like a good option when the money at hand is insufficient to buy the house of your dreams. Consider couples in their twenties and thirties. They enjoy a good income currently, buy their accumulated capital isnt enough to purchase a house. Whereas a home loan can give them access to capital their current earnings. Also, if you take a 10 years old loan when you are thirty, you could repay it by the time youre forty. So you dont have to be burdened with the interest and are free to plan your retirement savings. The Quantum of loan that one can avail of : Loan sanctioned depend on your repayment capacity which is based on your current income and your future repayment capacity. You would include your spouses name to enhance the loan amount.The maximum loan can be sanctioned varies with each bank/institutions and ranges from Rs.1 lakh to Rs. 10lakhs . Benefits of taking a home loan: A home loan is very different from a personal loan like a car loan for instance. You can utilize a home loan for financing an asset that will hold its value and even appreciate over the period of the loan. Though its price could fluctuate in the short terms, Total Estate will show capital appreciation over the years. The value of your house generally while the loan remains constant. If you had opted to wait, save up and buy a house, it would, in the long run cost you much more; home loans also come with many tax benefits.

FINANCIAL IMPLICATIONS OF AVAILING A LOAN (SMALL OR BIG) There are several expenses involved apart from repayment of the actual loan amount: 1. Processing fees- A processing fee (PF) is charges at the time of submission of the application form and covers expenses incurred for processing the application form. This fee has to be paid upfront by the customer in some cases, it is non-refundable. 2. Administration fees- to meet operating expenses. 3. Pre-EMI- A simple interest calculated on the disbursement amount in case of a plot under construction. 4. EMI- The EMI is an abbreviated form of the Equated money installment and is simply referred to as monthly installment in common parlance. And, being a self-explanatory term that is exactly what it is. The amount you will have to pay you financier every month when repaying your loan. Being a monthly payment, at the end of the year, you would have paid 12 EMIs.

UNIQUE FEATURES OF HOUSE LOAN Purpose: For purchase of house from builder/resale and construction/ extension of existing house. Loan Amount: You can avail for Home loans ranging from Rs.1 lakh to Rs.1olakh depending on your eligibility, income, and repayment capacity. Security: Home loan is a secured loan wherein collateral are required. Loan Tenor: The maximum loan tenure is 25 years.

So if you are planning to avail a home loan, here are some tips:

Firstly, take your own time and evaluate your expenses and do a market survey about the property buying process. Buying a house, which is way beyond your range, could affect you financially; banks help in financing your dream home via home loans.

ELIGIBILITY: Banks determine your eligibility based on your repayment capacity and discuss about the loan amount upfront. The eligibility for acquiring a home loan is augmented by clubbing income of your father/spouse/mother/son, by clearing your outstanding debts, by stretching your loan tenure, Salaried individuals can increase their eligibility by showing their performance linked income or bonus earned.

Secondly, Do your own analysis and check the impact of your repayment of home loan on your monthly expenditure, as a thumb rule, it is recommended to make sure the EMI of your home loan do not exceed more than 40% of your gross monthly income.

INTEREST RATES BEST SUITED: An important factor that goes into your EMI calculations in the interest rates, which may vary from bank to bank, so do compare them. Also do a complete and detailed analysis of the various options like the interest rates i.e. fixed and floating rate of interest.

Thirdly, if two banks give you the same amount of loan but at different interest rates do your math and work out whats best for you.

Fixed interest loans charge an interest, which remains the same through out the tenure of the loan. This means that the consumer is immune to market risk or the possible upward movement in the interest rates. Hence, fixed rate is a good option when the interest rates are expected to move in the future.

As for Floating rate loan, a consumer is exposed to market risk and his gain or loss depends on the interest rate condition prevailing in the market. Floating rate is beneficial if the interest rate falls in the future. A floating rate is considered non-transparent and is also known as adjustable rate Fourthly, if you decide to opt for a fixed rate loan, you can still switch to a floating rate loan in the future and vice versa as and when rates go in your favors and if you decide to switch, you should take into account the cost of doing so and the interest rate benefits of switching. For a given interest rate, loan with daily or monthly reducing balance is better than an annual reducing balance loan. Interest rates vary depending on the tenure of the loan, the amount of the loan and your personal profile.

Other costs: The interest rate and EMIs are not the only cost factor. A 1% administration fee and a 1% processing fee on a Rs.10 lakh loan, would amount to Rs.20,000. Processing fees, administration fees, valuation fee, legal fee, is to be paid when you apply for a loan and other fees paid at closing. Many of these fees are negotiable. You should ask for zero processing fees and zero penalty for pre-payment option. If this were not available, then the lowest cost would be better. Make sure you work out as to how much these costs add up to. So even though the interest rate may be lower, it usually adds up to being expensive. If the EMIs come out a lot more than what you can afford on a monthly basis; try to redo the math with changes in the tenure and loan amount (if possible).

DOCUMENT REQUIRED: Most importantly, all deals and offers agreed upon are supported by relevant papers. Self employed and salaried require different documents to support the deal. So make sure you always ask for a letter on the banks letterhead mentioning the likes of, exact rate of interest, processing fees, prepayment charges along with interest-schedule. Before signing the documents, make sure you recheck all terms and conditions. Do make sure you understand and agree with each of the clauses in the documents. Do not sign any blank documents. Even if it takes you a few hours to fill-up the form, please do so. Do not leave anything for the executive to fill-up. Its always better to get a legal opinion from someone on your loan papers. Do not under any circumstance give any false information. This may amount to fraud a d could land you in trouble.

Penalties: Once you have received the loan do your best to pay it back as quickly as possible. But this early payment might invite a pre-payment clause. Banks make their money off the interest they charge and the sooner you pay back a loan the less money you will have to pay in interest. When it comes to Home loans, penalties are binding, like if you choose to pay up your entire money before the tenure, a pre-payment penalty is charged. So you should know about such penalties beforehand to avoid future misunderstanding between you and the bank.

HOME LOAN TYPES

Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India. And the most important thing is you should know about each and every term related with Home Loans before applying for a loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property. You can take different types of home loans like Bridge loans, Home construction loans, Home equity loans, Home extension loans, Home improvement loans, Land purchase loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs. Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new house. Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased. Home Construction Loans: These loans are available for the construction of a new house. Home Extension Loans: These loans are given for expanding or extending an existing home. For e.g. addition of an extra room etc. Land purchase loans: These loans are available for purchasing land for both construction and investment purposes.

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Steps of Home Loans Buying a house is no longer a distant dream for hordes of people with modest means. For now they can apply for home loans to finance a new home. The different banks of India offers people the most convenient and practical home loan plans to suit individual needs. There are so many attractive features in different type of home loan in India offered by these banks that creating the home you always wanted would no longer remain a distant dream. But you have to know the right steps of home loan. While applying for a home loan you have to know how to go about it and the different eligibility criteria of home loans. The one of the initial steps of home loan is to calculate the amount of money which you would require to build your dream home or buy an ideal apartment. Then you have to choose the right bank from where you plan to apply for the loan. Some people prefer to take a loan from nationalized banks like Allahabad Bank, Central Bank of India, State Bank of India while others give priority to private banks like ICICI and Housing Development Finance Corporation (HDFC), AXIS etc. There are customized home loan plans for different people and the interest rates are also varies on whether you chose floating or fixed interest rate. Determining whether you want to opt for a floating rate or a fixed rate is another important step of home loan. One of the key steps of home loan is to decide whether you want short term loans or you want loans for a longer tenure like a maximum period of twenty five years. Other major steps of home loan are fulfilling different eligibility criterion for applying for a home loan. You have to show proper documentation to show your source of income and hence the repayment of the loan. This applies for both service holders and self employed people. The repayment capacity of the applicant or applicant are determined by the bank on the basis of on factors such as income, age, qualifications, number of Dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. The reason for all these calculations is that the banks want to make sure you can comfortably repay the loan amount.

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Home Loan Procedure Owned home gives a feel of stability in life. But the rising prices of property in India necessitate every proposed home buyer to go for a Home Loan. However, this practice has been made considerably simple by numbers of Housing Finance companies and private banks in the country. Axis makes Home Loan easily available. Home Loan Procedure Axis Bank: Submission Of Application Form After finalizing the financer, Axis Bank would ask the customer to submit the application form for the bank along with other relevant documents as required for approving the loan. They need documents to establish income, age, residence, employment, investments, etc. The customer also needs to hand over a cheque as a processing fee cheque of about 0.5-1% of the loan amount. Validation Of The Information As the next step of Axis Home Loan procedure the bank would send representatives to validate the information provided by the customer on the application form. They generally conduct checks on the residential address of the customer, his / her place of employment, and credentials of the employer. Issue Of Sanction Letter Post appraisal Axis issue a sanction letter which contains details such as loan amount, rate of interest, tenor of the loan, mode of repayment and general terms and conditions of the loan. This is the actually the approval of the money lending procedure by the company. Submission Of Documents Once the sanction letter is passed, the customer is required to submit original documents pertaining to the property being purchased. These documents remain in the custody of Axis till the time the loan is fully repaid. The bank then sends all the documents for a thorough legal scrutiny. Validation Of Property The most vital part of Home Loan Axis Bank procedure is prior to disbursement, the bank conducts a site visit to the customer's property to ensure that all construction norms have been adhered to properly. Payment Procedure Once the bank is through with all the mentioned process, the loan gets disbursed based on the builder demand or stage of construction whichever is applicable. is supposed to pay a simple interest on the Actual Amount drawn (without any principal repayments). The EMI payments however commences only after the total sanctioned loan amount gets disbursed

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CHAPTER 2 Introduction to company

HDFC BANK-WE UNDERSTAND YOUR WORLD

INTRODUCTION

The HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC) was amongst the first to receive an in principal approval from The Reserve bank Of India (RBI)to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking Industry in 1994.The bank was incorporated in August 1994 in the name of HDFC BANK LIMITED, with its registered office in Mumbai,India.HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in International markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units.HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise.HDFC was ideally positioned to promote a bank in the Indian environment. HDFC bank began operations in 1995 with a simple mission: to be a WORLD CLASS INDIAN BANK. We realized that only a single minded focus on product quality and service excellence would help us get there.Today,we are proud to say that we are well on our way towards that goal.

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HDFC LTD

72.26% HDFC STANDARD LIFE

60% HDFC ASSET MANAGEMENT

23.26% HDFC BANK (inclusive

of warrants)

HDFC Standard Life insurance Company- HDFC holds 72.26 %. HDFC Asset Management Company HDFC holds 60% HDFC Bank- HDFC holds 23.26%. Intelenet Global (Business Process Outsourcing) HDFC holds 50%. HDFC Chubb General Insurance Company HDFC holds 74%.

HDFC Limited

jjjjjjjj

Type Founded Headquarters Key people Industry Revenue Employees Website

Public (BSE: 500010) 1977 Mumbai,India Ravi Maurya Hasmukhbhai Parekh Housing Finance US$ 1.49 billion (2008) 1,029 www.hdfc.com

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JOINT VENTURE

HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Reach of the JV player is highly rated and been conferred with many awards. HDFC is rated AAA by both CRISIL and ICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture. HDFC Standard Life Insurance Company Ltd. Is one of Indias leading Private Life Insurance Compa nies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) Indias leading housing finance institution and the Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Both the promoters are will known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry- all important factors to consider when choosing your insurer. HDFC BANK COMPETITORS ICICI Bank www.icicibank.com ICICI Bank is Indias second largest bank. AXIS Bank www.axisbank.com

Provides financial products and banking services in India.

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BOARD OF DIRECTORS

Managing Director ExecutiveDirector Executive Director Chairman

Aditya Puri Paresh Sukhthankar Harish Engineer Jagdish Kapur

Equities and Private Banking and NRI Abhay Aima Business Information Technology and Legal Treasury Merchant Services Audit and Compliance Anil Jaggia Ashish Parthasarthy Bharat Shah G Subramanyam

Credit and Market Risk Human Resources Infrastructure Branch Banking Assets and Credit Cards

Kaizad Maneck Bharucha

Administration and Mandeep Maitra

Navin Puri Pralay Mondal

Retail Liabilities,Marketing and Direct Rahul N Bhagat Banking Channels Operations Finance Treasury Rajan Ananthanarayan Shashi Jagdishan Sudhir Joshi

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HDFC Home loan

Home loans offered by HDFC Bank encompasses a wide range of loan options which are subject to various parameters like term of loan, financial status of the individual seeking loan and the purpose of loan. Owing to these diversifications, HDFC Home loans have grown in popularity over the years. HDFC is Indias largest housing finance company with a market share of 55% in loan disbursals.BeingBeing in the business for over 25 years; HDFC has an impressive loan portfolio for varied housing finance needs. In the home loan segment, HDFC offers loans for individuals to purchase (fresh/resale) or construct houses. There is a great flexibility and variety in the home loans as it is open to salaried and self employed individuals alike, to both resident and non-resident Indians and requires no guarantor, charges one time processing fees and offers choice of variable and fixed rate loans. It offers loans to construct/buy a new home, loans for home extension, home repairs and purchase of plots. In addition to the attractive loan schemes, HDFC customers can avail of a host of related benefits like Loan Cover Term Assurance Plan, automated repayment of home loan EMI and in-house scrutiny of property documents. Existing HDFC Bank home loan customers can avail of other loans such as Personal loans and Car loans at lower interest loans. The advantages associated with HDFC Home Loans are: An individual can undergo a Home Loan Counseling where HDFC shares its experiences of providing Home Loans for 29 years. Wide range of products which offers multiple choices to an individual to choose the loan plan that suits him/her the best. Multiple Repayment Options gives a customer a wider scope of repayment according to his/her financial situations.
Wide network of financing also enables the individuals to get his/her loan sanctioned from a place of his/her choice and also pay the installments duly no matter where he/she is

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 Extension Loans: These loans are given for expanding or extending an existing home. For example: Adition of an extra room, a larger bathroom or even enclosing an open balcony.

FEATURES:

MAXIMUM LOAN: The maximum amount of the loan is 85% of the cost of extension. MAXIMUM TERM: The maximum term of the loan is 20 years subject to the age of your retirement. Land Purchase Loan: These loans are available for purchasing land for both construction and investment purposes.

FEATURES:

MAXIMUM LOAN: The maximum amount of the loan is 85% of the cost of the land and based on the repayment capacity of the customer. MAXIMUM TERM: The maximum term of the loan is 15 years subject to the age of your retirement.

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HOME IMPROVEMENT LOANS: These loans are available for improvement of the house. For Example: External Repairs, Tiling and Flooring,etc.

FEATURES: MAXIMUM LOAN: For existing customers the maximum amount of loan is 100% of the cost of improvement. For new customers the maximum amount of the loan is 85% of the cost of improvement.

MAXIMUM TERM: The maximum term of the loan is 15 years subject to the age of your retirement.

SHORT TERM BRIDGING LOAN: It makes you realize your dream of buying a bigger and better home and gives you time to sell your existing property to pay off the loan. This is a short term loan to help customers with the interim period between the sale of your old home and purchase of a new home. You can take the loan even if you are an existing customer of HDFC.

FEATURES:

MAXIMUM LOAN: The maximum amount of the loan is 90% of the cost of property.

MAXIMUM TERM: The maximum term of the loan is 2 years.

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REPAYMENT FACILITIES: HDFC provides Multiple Repayment Facilities to its customers. These facilities include Step up Repayment Facility, Flexible Loan Installments Plan, Tranche Based Equated Monthly Installments, and Accelerated Repayment Scheme. Step Up Repayment Facility: This facility helps young executives a much bigger loan today based on an increase in their future income, this helps executives buy a bigger home today. Flexible Loan Installments Plan: Often customers, parents and their children, wish to purchase properties together. The parent is nearing retirement and their children have just started working. This option helps such customers combine the incomes and take a long term home loan where in the installments reduces upon retirement of the earning parent. Tranche Based Equated Monthly Installments: Customers purchasing an under construction property need to pay interest (on the loan amount drawn based on level of construction) till the property is ready. To help customers save this interest, they have introduced a special facility of Tranche Based Equated Monthly Installments (EMIs).Customers can fix the installments they wish to pay till the property is ready.The minimum amount payable is the interest on the loan amount drawn. Anything over and above the interest paid by the customer goes towards principal repayment. The customer benefits by starting EMI and hence repays the loan faster. ACCELERATED REPAYMENT SCHEME: Accelerated repayment Scheme offers you a great opportunity to repay the loan faster by increasing the EMI, whenever you get an increment, increase in your disposable income or have lump sum funds for loan repayment, you can benefit by: Increase in EMIs means faster loan repayment. Savings of interest because of faster loan repayment. You can invest lump sum funds rather than use it for loan prepayment. The return from the investments also gives you the comfort of paying the increased EMI. 20

ELIGIBILITY TERMS FOR HDFC HOME LOAN

Due to varied offering of house loans and home finance, attractive loan interest rate and numerous other facilities besides a basic home loan, you would be sure that HDFC Bank Home Loans provides the perfect home loan for you. The eligibility norms for availing of home loans are easy and simple to follow. They have different norms for the different types of property loans available to you. These eligibility norms for home loans are applicable to all Resident Indians looking to avail of their home loans.

CONDITIONS OF HOME LOAN

You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. You must be employed or self-employed with a regular source of income.

LOAN AMOUNT The home loan amount depends on your repayment capability and is restricted to maximum of 85% of the cost of property or the cost of construction as applicable.

DOCUMENTS REQUIRED FOR HOME LOAN SANCTION:

HDFC Bank the leading Home Loans Provider, offers attractive interest rates and unbeatable benefits to ensure that you get the best deal without any hassels.Keeping your convenience in consideration, they ask you for minimal mandatory documents for the sanctioning of your home loan.

At HDFC BANK HOME LOANS they require the following documents to sanction your home loan:

COMMON FOR ALL APPLICANTS: i. ii. iii. Allotment letter of the co-operative society/association of apartment owners. Copy of approved drawings of proposed construction/purchase. Agreement for sale/sale deed/detailed cost estimate from architect/engineer for the property to be purchased/constructed.

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iv.

If you have been in your present employment/business or profession for less than a year, mention details of occupation for previous 5 years, giving positions held reasons for change and period of the same.

v. vi.

Applicable Processing Fees. Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the case.

ADDITIONALLY, IF YOU ARE EMPLOYED: i. ii. Latest salary slip/salary certificate showing all deductions. If your job is transferable, permanent address where correspondence relating to the application can be mailed. iii. A letter from your employer agreeing to deduct the monthly installments towards repayment of the loan from your salary.This wills expediate the processing of your loan application.

IF YOU ARE SELF-EMPLOYED: i. Balance Sheets and Profit and Loss Accounts of the business/profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant. ii. A note giving information on the nature of your business/profession, form of organization, clients, suppliers, etc.

Please take photocopies of all documents that are submitted to HDFC (including the application form) for your personal account

Current Home loan rates of Hdfc Ltd (Wef : 6th Feb 2013)

Loan Schemes HDFC Ltd (Floating Rates)

Upto & including Rs 30 lacs 10.15%

above 30lacs to 75lacs 10.40%

above 75lacs 10.40%

Loan Schemes HDFC Ltd (Fixed Rates)

Upto & including Rs 10 lacs 10.75%

above 10lacs to 75lacs 11%

above 75lacs 11.25%

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AXIS BANK

ABOUT AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank as on 31st December, 2011 is capitalized to the extent of Rs. 412.57 crores with the public holding (other than promoters and GDRs) at 53.63%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1281 branches (including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 7591 ATMs (as on 30th September, 2011) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

Axis Bank features It has an extensive network of more than 1,281 branches (including 169 service branches/CPCs) as on March 31, 2011. It operates a network of over 6,270 ATMs as on March 31, 2011, that provides banking convenience 24x7. It functions in both retail and corporate banking. It has earned international recognition for its ethical business practices and social responsibility.

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Company History - Axis Bank Ltd.

1993 - The Bank was incorporated on 3rd December and Certificate of business on 14th December. The Bank transacts banking business of all description. UTI Bank Ltd. was promoted by Unit Trust of India, Life Insurance Corporation of India, General Insurance Corporation of India and its four subsidiaries. - The bank was the first private sector bank to get a license under the new guidelines issued by the RBI. 1997 - The Bank obtained license to act as Depository Participant with NSDL and applied for registration with SEBI to act as `Trustee to Debenture Holders'. - Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and its four subsidiaries Rs 1.5 crores each. 2010 - Axis Bank Limited has informed that at the meeting of the Board of Directors held on January 15, 2010, the following decisions were taken: (1) To appoint Dr. Adarsh Kishore, former Finance Secretary, Government of India and former Executive Director, International Monetary Fund representing Bangladesh, Bhutan, India and Sri Lanka, as the Non-Executive Chairman of the Bank, subject to RBI approval; (2) To appoint Shri S.B. Mathur, former Chairman, LIC and the National Stock Exchange of India, as an Additional Independent Director, with immediate effect. AXIS Bank Ltd has appointed Shri M. S. Sundara Rajan, former CMD, Indian Bank as an Additional Independent Director with immediate effect. 2011 Axis Bank launches online trading platform AxisDirect - Axis Bank has launches pre-paid VISA card i.e. MY MONEY CARD. - Axis Bank opens new representative office in Abu Dhabi 2012 - Axis Bank partners with NIIT IFBI to introduce PG Diploma in Retail Banking. - Axis Bank inducts Schroders as a 25% partner in Axis AMC. 24

- Axis Bank, Axis Capital, joined hands with Baird, an international, employee-owned financial services firm, to ofer investment banking services.

Promoters
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each. SUUTI - Shareholding 23.72% Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.

Board of Directors The members of the Board are :

Dr. Adarsh Kishore Smt. Shikha Sharma Dr. R.H. Patil Smt. Rama Bijapurkar Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Shri Prasad R. Menon

Chairman Managing Director & CEO Director Director Director Director Director Director Director 25

Shri R. N. Bhattacharyya Shri Samir K Barua Shri A K Dasgupta Shri Som Mittal

Director Director Director Director

Awards and Recognitions

In year 2011-12 [18]

Bank of the Year India The Banker Awards 2011 Best Bank - Private Sector NDTV Profit Business Leadership Awards Best Bank 2011 Outlook Money Brand Excellence Award 2011 (BFSI) StarNews The Most Consistent Large Bank Best Banks-2011 Survey by Business Today and KPMG Most Preferred Bank Amongst Retail Customers CLSA survey on personal banking trends Most Productive Private Sector Bank FIBAC 2011 Banking Awards 3rd Strongest Bank in Asia-Pacific Region Asian Banker The Best Domestic Bank- India TheAsset Triple A Country Awards 2011 The Best Domestic Bond House India TheAsset Triple A Country Awards 2011 Best Risk Master (Private Sector Category) FIBAC 2011 Banking Awards Best Bond House India -2011 Finance Asia

Vision 2015 and Core Values

VISION 2015: To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology. Core Values Customer Centricity Ethics Transparency Teamwork Ownership

26

AXIS BANK HOME LOAN

Axis Bank offers affordable and flexible housing loans that can turn your dream of owning a home into reality. If rising real estate prices have pushed the house you coveted beyond your budget, Axis Banks unmatched home loans will put it within reach. The attractive interest rates and minimal processing fees make our home finance products a first choice for savvy buyers. In addition, features such as flexible tenures, transparent processing and quick service have made our products stand out among the best home loans in India. We have products to suit every budget, taste and need. Whether you are self-employed or salaried, want a floating or fixed rate, Axis Bank will offer a loan that is just right for you.

Features of Axis Bank Home Loans

Axis Bank housing loans are designed for todays home-hunter. Our easy home loans are rich in features and offer a number of benefits. Attractive housing finance rates: We offer attractive interest rates that make your housing loans affordable and easier on your pocket every month. Flexible rates: Choose between fixed and floating rate options depending on which way you think interest rates are moving. Balance transfer facility: Not satisfied with your existing Home Loan provider? You can transfer your Home Loan to us without any hassles. Doorstep service: You don't have to go the bank for Home Loans; the bank will come to your doorstep. Perfect for those leading busy lives. Nil prepayment charges* : Come into some money and want to pay off your housing loan early? You can do that at Axis Bank without worrying about prepayment charges. Quick and transparent processing: Special Benefits available for premium Banking customers. To know more, contact your Relationship Manager today! 27

At Axis Bank, theres more to a home loan than finance for apartments or readymade homes. Want to build a home according to your specifications and designs? Axis Bank offers loans for land purchase so that buy plots and create your dream home the way you want. We also provide home renovation loans that will help you refurbish your home without worrying about upfront costs. The attractive interest rates on land purchase loans as well as home improvement loans, and Axis Banks reputation for customer service make our housing finance products a great choice for customers.

Land Loan features and benefits

You can use the land purchase loan to buy a plot of land and to construct the house. You can take a land loan to build a house on a plot of land that you already own. The land loan can be used to buy a new house/ flat. Purchase an old house/ flat. To avail of the loan, the residual age of the property as confirmed by our empanelled valuators at the maturity of the loan should not be less than 10 years. Takeover of existing housing loans.

Home Improvement Loan features and benefits

You can use our home improvement loans for a variety of purposes. You can utilize it to make renovations, paint the house, carry out repairs to the walls and floor etc. You also get the benefit of attractive interest rates on home renovation loans.

Axis Bank offers loans to a variety of individuals. Home loan eligibility is determined by various factors such as income, employment status, tenure and so on. Our aim is to provide affordable housing loans to as many individuals and families as possible.

Home Loan Eligibility Criteria

A) - Salaried Individuals

Individuals in permanent service in the Government or reputed companies meet our Home Loan eligibility criteria Applicants should be above 24 years of age at the time of loan commencement and up to the age of 60 or superannuation, whichever is earlier at the time of loan maturity.

B) - Professionals

Professionals (ie, doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, management consultants only) can apply. Applicants above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity meet our housing loan criteria.

28

C) - Self Employed Individuals

Any individual filing income tax returns can apply Applicants should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity

Documentation

Purpose Proof of identity

Salaried Passport or Voter's ID card or driving license or PAN card or photo credit card or employees ID card or defense or police or government department ID card Latest salary slip showing all deductions or Form 16 along with recent salary certificate Bank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or employers letter certifying the current mailing address Last 6 months

Others Passport or Voter's ID card or driving license or PAN card or photo credit card IT returns for the last 2 years and computation of income for the last 2 years certified by a CA Bank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement Last 6 months

Proof of income

Proof of residence

Bank statement or Pass Book where salary or income is credited

Borrowing limits
You can borrow a minimum of Rs. 3 lacs under this scheme. Sr. No 1 2 Loan amount (Rs.) For Housing Loan upto Rs. 20 lacs For Housing Loan above Rs. 20 lacs Margin 15% 20%

Our Home Loan Rates Sr. Type Loan amount (Rs.) No 1 Floating Rate Less than Rs. 25 Lac

Base Rate + Mark Effective Rate Of Up Interest Base Rate + 0.75% 10.75% p.a. 29

Loans greater than Rs.25 lac - Rs. 75 Base Rate + 1.00% 11.00% p.a. lac Loans greater than Rs. 75 lac Base Rate + 1.25% 11.25% p.a. Top Up - All loans, Renovations Base Rate + 2% 12.00% p.a. Base Rate - 10.00%

Home Loan with Fixed Rate of Interest Type Fixed Rate 11.75% p.a. Switching Cost:

Effective Rate Of Interest

Switching from the floating rate scheme to the fixed rate scheme and vice versa is permissible. If a fixed rate customer wants to reschedule loan to the present fixed interest rate applicable to the new customers, the same is also permissible. The existing customers can also switch over to the new rate of interest applicable for the new customer. For all of the above changes, a nominal switching fee is applicable. Repayment

Repayment period for Home Loans shall not exceed 25 years. Repayment period of pre-allotment bookings of housing loans shall not exceed 1 year Repayment period of improvement or renovation or extension of existing property shall not exceed 10 years.

Disbursement The loan will be disbursed in full or in suitable installments, taking into account the requirement of funds and progress of construction, as assessed by the Bank directly to seller or builder or local development authority or supplier of materials etc. Processing charges or admission fee Processing fee equivalent to 1% of the loan amount (applied for) will be collected along with the application form (taxes as applicable). Penalty for early closure Nil on floating interest rate Home Loans. Other Conditions

Bank reserves the right to reject any application without assigning reasons thereof The applicant will undertake to inform the Bank as and when there is a change in address or employment

The terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion

30

Bank Name

Floating Interest rate

Processing Fee

Prepayment Charges

Comparative Chart on Home Loan Interest Rates

31

State Bank Of India

9.95% Scheme I :10.25% (Fixed 1 yr) Scheme II : 10.25% (Fixed 2yrs) Scheme III : 10.50% (Fixed 3yrs) then 10.25%

Up to 25 lacs : 0.125% of loan amount minimum Rs.1000/25-75 lacs : Rs.3,250/75 & above : 5,000/-

Nil

ICICI Bank

0.50% of loan amount upto 1 crore

N.A

HDFC Ltd

10.15%

0.5% or maximum 10,000+service tax (12.36%)

No prepayment charges shall be payable for partial or full prepayments irrespective of the source Nil

HSBC Bank

10% to 13% Scheme I : 10.25% (Fixed for 2 yrs) Scheme II : 10.70% (Fixed for 3 yrs) 11.15% (Fixed for 5 yrs) Scheme III : 10.95%(Fixed for 10 yrs) 10.25% (Upto 25 Lacs), then 10.50% 10.25%

1% of the loan amount applied for, subject to a minimum of Rs 10000 plus service tax. This fee is payable on application and is not refundable

LIC Housing

Up to 50 lacs : 10,000 +(Service tax) 50 lacs & above : 15,000 +(service tax)

Nil

AXIS Bank

1% of the Loan Amount

Nil

IDBI

Up to .50%of loan amount If Balance Transfer (Rs 2500 to be collected at login and then 2% Otherwise Nil balance at the time of sanction ) 0.5% of the loan amount Rs.7500/- + Service tax 1% for Salaried & 1.5% for SENP 0.25% (for salaried ), 0.50% ( for Self Employed) 12000 + Service Tax Up to 30 lacs 5,000+12.36%(Service tax) 30 lacs & above : 15,000+12.36%(Service tax) NIL NIL NIL NIL Nil

ING Vysya Standard Chartered DHFL Citibank Deutsche Bank

10.75% 9.99% (Upto 25Lacs), then 10.40% 11% 10.50% (Upto 25Lacs), then 10.75% 10.50% 10.15% (Upto 25Lacs), then 10.75%

India Bulls

NIL

Allahabad Bank Bank of Maharastra Central Bank of India Corporation Bank Bank of India

10.20% (Upto 25Lacs), then 0.50% of loan amount, Maximum Rs. 10.45% 10,000/10.25% 10.25% 10.25% 10.25% Up to 1 cr : NIL , Above 1 crore 0.25%(Maximum 25,000) PROCESSING CHARGES COMPLETELY WAIVED DURING FESTIVE SEASON 01.9.2012 TO 31.03.2013 0.50% of Loan amount (Max.Rs.50,000/-) Waived till 31.03.2013 for new loans sanctioned and 1st disbursement before 31.03.2013

NIL Nil Nil NIL NIL

32

Union Bank of India United Bank of India UCO Bank

10.25% 10.75% (upto 25 lacs) then 10.55% 10.20%

waived off (till 26-Jan-2013) 0.50% of the loan amount N.A Loan upto Rs.30 Lacs - 0.50% (Minimum Rs.5,000/-) Above 30 Lacs - 0.40% (Min. Rs.15,000/- & Max. Rs.50,000/-)

NIL N.A N.A

Bank of Baroda

10.25%

N.A.

Canara Bank Oriental Bank of Commerce Kotak Bank Dena Bank Punjab National Bank

10.75% 10.25% 10.75% 10.30% 10.25% 10.25% (for Salaried / SEP), 10.75% (For Self Employed) (Upto 25Lacs), Then 10.75% (for Salaried / SEP), 11.25% (For Self Employed) Salaried: Up to 30 lacs :7300 30 - 75 lacs : 11800 75 lacs & above : 15,000 + service tax(12.36%) 0.50% of the loan amount, subject to maximum of Rs. 20000/- plus service tax 0.25% - 0.5% N.A NIL 2% on Balance transfer else NIL N.A

First Blue Home Finance

Nil

Syndicate Bank

10.25% ( upto 25 lacs ), then 10.50%

upto Rs.25 lacs - 0.25% (Min Rs 1000 - Max Rs 5000) 26 lacs to 75 lacs - 0.55% (Max.Rs.500/-) above Rs.75 lacs - 0.55% (Max Rs.10000/-) A flat rate of 0.58% of the loan amount- maximum of Rs. 10,190/There is no hidden charge. This is subject to change from time to time without prior intimation.

N.A

Indian Overseas Bank

10.25%

N.A

CHAPTER 3 REVIEW OF LITERATURE

33

After going through pervious studies of Home loans I came to conclude that There is growth of home loans after 2001. Home loans have an inverse relation with interest rates i.e. when interest rate low the demand of home loans increase. People are going more towards home loans than private mortgage insurance . Government taking various steps to encourage people to go toward home loans Growth of home loans are due to increase of living standard of people, shifting from joint family to nuclear family There are some problems also attach with these home loans such as time i.e filling of application of loan to closing ,people have their own specified needs from these home loans which are not fulfilling.

CHAPTER 4 Research Methodology 2. Research objectives:

34

The prime objective of the study are To find the bank that is largely availed by the customer To study the factors which influencing the choice of a bank for availing services. To analyze the satisfaction level of privatize banks (HDFC Bank and AXIS Bank) Home Loan Customers. To study the problems faced by customers in obtaining home loan. To know that which bank provide better loan schemes.

RESEARCH METHODOLOGY Design of Research:

The research was exploratory in nature. A population of peoples who take home loan from these banks considered for this study. I will try to explore about the home loans which would make a difference in the behavior of the consumer. Effort will be made to throw light on most of the factors which have either indirect or direct effect on the behavior of the consumer.

Sampling Plan
Population: The study aimed to include the customers of HDFC & AXIS in Malout & Muktsar city to make a comparative analysis of home loan schemes of these two banks. Sample Size: A Sample size of 100 respondents will be taken for the current study because it is not possible to cover the whole universe in the available time period. So it is necessary to take the sample size. Sampling technique:

The sampling technique will be probabilistic sampling more specifically the random convenient and judgemental sampling will be used. As in probabilistic sampling the select unit for observation with known probabilities so tha statistically sound assumptions are supported from the sample to entire population so that we had positive probability of being selected into the sample

Sources of Data:

I will use primary source of data that is structured questionnaire. As these banks are established from so many years, so many researchers have done research on this topic, so we will find secondary data also and also use this data for the help of this research. So, this research data will collected from the primary source and secondary source. 35

Our method of collecting the data is from the questionnaire that will be filled by the respondent from the sample, it will be structured questionnaire. Tools and Techniques:

As no study could be successfully completed without proper tools & techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently and I am very thankful to all those tools for helping me a lot. Basic tools which I used for project are: PIE CHARTS TABLES Pie charts are very useful tools for every research to show the result in a clear, simple way. Because I used pie charts in my project for showing data in a systematic way. So I need not necessary for any observer to read all the theoretical detail, simple on seeing the charts anybody that what is being said. Technological Tools: MS -WORD MS-EXCEL

LIMITATIONS OF THE STUDY:

This study also includes some limitations which have been discussed as follows: To collect the data from banks was quite difficult due to non- cooperation of employees. This proved to be major limitation of the study. This research study was taken in a limited area only (i.e. Malout & Muktsar city) and findings may vary if the area of study is increased or changed. Ignorance and reluctant attitude of customers was also a major limitation in this study.

CHAPTER 5 Data Analysis and Interpretation

36

Data Analysis and Interpretation

The following analysis was done to obtain the findings in

accordance with our objectives determined during the course of study. To know about comparative study of home loan scheme offered by HDFC Bank and AXIS Bank and assessing the level of consumer satisfaction. Following questions asked in the questionnaire:

Q.1.In which type of job you are? Table-1 Types Of Job Government sector No.Of Persons (%) 23% 29% 24% 24% House wife Business man Others

24%

23% Government sector House wife

24%

29%

Business man Others

Chart 1

Interpretation
Out of respondents, there are 23% persons who are in government sector,29% persons are House wife,24% persons have their own business and 24% belongs to others category. Q.2.What is your salary structure (Per Month)?

Table-2 37

Salary No. Persons(%) Of

<10,000

10,000-20,000

20,000-30,000

>30,000

29%

38%

25%

8%

No. Of Persons(%)
8% 29% 25% <10,000 10,000-20,000 20,000-30,000 >30,000 38%

Chart 2

Interpretation
Among the respondents, salary of 29% persons are below Rs.10,000,salary of 38% persons lies between Rs.10,000-Rs.20,000,salary of 25% persons lies between Rs.20,000-Rs30,000,and salary of 8% persons is more than Rs.30,000.

Q.3 Which bank you prefer to take Home loan?

Table-3 38

Bank No. Of Persons(%)

HDFC Bank 34%

AXIS Bank 39%

Others 27%

27%

34% HDFC Bank AXZIS Bank Others

39%

Chart 3

Interpretation
Among the respondent, 34% persons prefer HDFC bank,39% prefer AXIS bank and 27% prefer other banks.

Q.4What is your opinion regarding the home loan procedure? 39

Table-4 Opinion Complex Difficult(own safety) No.Of Persons(%) 26% 37% 20% 17% Simple Cant Say

No.Of Persons(%)
17% 26% Complex Difficult(own safety) 20% Simple Cant Say 37%

Chart 4

Interpretation
Among the respondents,26% persons think that the home loan availing procedure is complex,37% persons believe that it is difficult (requires own safety),20% persons think that it is simple and there are 17% persons who do not have any opinion about it.

Q.5 Which type of interest rate have you preferred?

Table-5 40

Types interest No.Of persons(%)

of Fixed

Floating

Adjustable

52%

39%

9%

9%

Fixed 39% 52% Floating Adjustable

Chart 5

Interpretation
Among the respondents, 52% persons are interested in fixed rate of interest at the time of home loan, 39% persons are interested in floating rate of interest, 9% persons prefer adjustable rate of interest.

Q.6 What is the factor that influence the people for taking home loan for particular bank? 41

Table-6 Reason Lower Rate Easy Of Interest Availability Faster processing Brand image bank No. Of 39% 17% 28% 16% of

Persons(%)

16% 39% 28% 17% Lower Rate Of Interest Easy Availability Faster processing Brand image of bank

Chart 6

Interpretation
Among the respondents, 39% persons consider lower rate of interest while taking home loan, 17% consider easy availability, 28% consider faster processing and 16% persons consider brand image of bank while taking home loan.

Q.7.Are you satisfy with the bank from where you have availed the home loan?

Table-7 42

Satisfaction No. Of Persons(%)

Yes 65%

No 35%

Satisfaction Level

35% Yes 65% No

Chart 7

Interpretation
Among the respondents, 65% persons satisfy with the bank from where they have availed the home loan but 35% persons are not satisfied with the bank from where they have availed the home loan.

Q.8.How did you come to know about the specific financial institution offering home loan?

Table 8 43

Source

Of Internet

Television Friends

Others

Information No. Of 22% 26% 38% 14%

Persons(%)

14%

22% Internet Television

38%

26%

Friends Others

Chart 8

Interpretation
Among the respondents, 22% persons came to know about home loans through internet, 26% persons came to know through television, 38% persons came to know through friends, 14% persons came through other sources.

Q.9.Which bank provide home loan at lower rate of interest?

Table-9 44

Bank No. Of Persons(%)

HDFC Bank 39%

AXIS Bank 33%

Others 28%

28%

39% HDFC Bank AXIS Bank 33 % Others

Chart 9

Interpretation
Among the respondents, 31% persons say that the interest rate is lower in HDFC Bank, 28% persons says that it is lower in AXIS bank and 41% persons says that the interest rate is lower in other banks.

Q.10Which bank easily provide home loan?

Table-10 45

Bank NO. Persons(%) Of

HDFC Bank

AXIS Bank

Others

33%

39%

28%

28%

33% HDFC Bank AXIS Bank Others

39%

Chart 10

Interpretation
Among the respondents, 33% persons say that HDFC Bank easily provide home loan, 39% persons says that AXIS Bank easily provide home loan and 28% persons says that other banks easily provide home loan.

Q.11.According to you which bank enjoy good reputation in home loan sector?

Table11 46

Bank No. Of Persons(%)

HDFC Bank 35%

AXIS Bank 32%

Others 33%

33%

35% HDFC Bank AXIS Bank Others

32%

Chart 11

Interpretation
Among the respondents, 35% persons say that HDFC bank enjoys good reputation, 32% persons says that AXIS bank enjoys good reputation and 33% persons says that other banks enjoys good reputation.

Q.12Which type of loan is used by you?

Table 12 47

Type of loan Home purchase loan Home construction loan Home improvement loan Home extension loan Land purchase loan

No. of respondent(%) 25% 36% 20% 0 19%

Sales

19 0 25 Home purchase loan Home construction loan Home improvement loan 20 Home extention loan Land purchase loan

36

Chart 12

Interpretation
Among the respondent, 25% persons use home purchase loan,36% persons use home construction loan, 20% use home improvement loan, no one use home extension loan and 19% persons use land purchase loan.

Q.13Are you satisfy with the employees behavior of HDFC bank? 48

Table 13
Opinion No. Of Persons(%)

Yes
68%

NO
38%

Yes

NO

36%

64%

Chart 13

Interpretation
Among the respondent, 64% satisfy from bank and 36%are not satisfy from employee behavior of HDFC bank.

B.Are you satisfy with the employees behavior of AXIS bank? 49

Table 14(B) Opinion No. Of Persons(%)

Yes
76%

NO
24%

Yes

NO

24%

76%

Chart14(B)

Interpretation
Among the respondent, 76% persons are satisfy from bank and 24% are not satisfy from employee behavior of AXIS bank.

Q.14.Your opinion about HDFC home loan procedure? 50

Table-14 Opinion No. Persons(%) Of Average 10% Good 14% Very Good 44% Excellent 32%

10% 32%

14%

Average Good Very Good Excellent

44%

Chart 14

Interpretation
Among the respondents, 10% says that HDFC home loan procedure is average, 14% says that it is good, 44% says that it is very good and 32% says that HDFC home loan procedure is excellent.

Q.15.Your opinion about AXIS home loan procedure? 51

Table-15 Opinion No. persons(%) Of Average 21% Good 46% Very Good 18% Excellent 15%

15% 21%

Average 18% Good Very Good Excellent

46%

Chart 15

Interpretation
Among the respondents, 21% says that AXIS home loan procedure is average, 46% says that it is good, 18% says that it is very good and 15% says that AXIS home loan procedure is excellent.

Q.16 Do You face any problem while taking loan? 52

Table 16 Problem No. of persons Yes 65 No 35

Problems
Yes No

35%

65%

Chart 16 Interpretation
Among the respondent, 65% says that they face problems while taking home loan and 35% says they cannt face any problem.

Problems faced by customers while availing home loans

53

There are everything in the world has good or bad points. No doubt banking industry/ company has made many efforts to enhance the customer satisfaction but customer still faced some problems. These are high lightened as below: 1) The customer does not have proper knowledge about different home loan products so they face problem in making a good deal. 2) Procedural delays because of more legal formalities, which harass the customers lot. 3) The attitude of bank employees sometimes non cooperative and it creates a hurdle in building trust and Confidence among customers about banks. So above discussed are the problems which faced by customers while availing home loans.

CHAPTER 5 Findings, Suggestions & Conclusion

54

Findings
HDFC bank is most preferred by the people as compare to AXIS bank. Most of the people preferred fixed rate of interest. Lower rate of interest is main factor which influence the choice of bank. HDFC bank provide loan at low rate of interest. AXIS bank provide easily home loan. Both banks enjoy good reputation in home loan sector. People face problems while taking loan like more legal formalities, reference problem etc. Most of the people use home loan for construction of home. Majority of people think home loan procedure is difficult. Majority of people are satisfy from employee behavior of Axis bank.

Suggestions
55

 Rate of interest should be competitive with other banks. Simplify the procedure of home loan. The formalities and paperwork should be reduced while providing the loans to the customers & demand only the basic essential proof. The behavior of the staff of the bank toward the customer should be cooperative Proper credit appraisal of the customers should be done Many booklets and attractive advertisement should be providing to the customer for awareness about different housing loan scheme. Relevant information should be provided to customers time to time. Emphasis should be given on retaining customers. As far as possible, banks should reduce its documentation process while providing loans. To satisfy their customers and for good dealings in future, the banks should make prompt disbursement of loan amount to the customers so that they can buy or construct their dream home as early as possible.

Conclusions

56

After doing a lot of research and studying the materials available on internet, newspapers, magazines and journals. I want to conclude that people prefers HDFC Bank more than AXIS Bank for Home loans in private sector. As private banks are coming daily in our country still, Mostly people prefers government banks for loans, especially older persons are more dependent on government banks. It is true that younger population preference is changing and they prefer more private banks because of services and facilities provided by private banks. The interest rate is lower in government banks but services are not up to the mark. The appearance of banks also becomes very important for the present generation and private banks put their complete efforts on this, which is lacking in government banks. At last I can only say that HDFC & AXIS Bank both enjoys good position in home loan sector

References:
57

INTERNET www.hdfc.com www.hdfcbank.com www.axis.com www. axisbank.com www.google.com www.wikipedia.org

QUESTIONNAIRE Dear Respondent, Please fill the questionnaire 58

To undertake the comparative analysis of HDFC Bank and AXIS Bank in home loan sector) Name________________ Age 18-25 -

Gender________________ Mobile No._____________ Q.1What is your occupation? Business man Government employee House wife Other Q. 2 What is your salary structure slab (Per Month)? <Rs.10,000 Rs.10,000-Rs.20,000 Rs.20,000-Rs.30,000 >Rs.30,000

Q.3Which bank you prefer to take personal loan? HDFC Bank AXIS Bank Others

Q.4 What is your opinion regarding the home loan procedure? Complex Difficult(Own Safety) Simple Cant say

Q.5 Which type of interest rate have you preferred? Fixed Floating Adjustable rates

Q.6 What is the reason for taking home loan from this bank? Faster Processing 59

Lower Interest Rates Brand image of the Bank Others

Q.7.Are you satisfy with the bank from where you have availed the home loan? Yes No

Q.8 How did you come to know about the specific financial institution offering home loan? Internet Television Friends/Relatives Other

Q.9 Which bank provide home loan at lower rate of interest? HDFC Bank AXIS Bank Others

Q.10 Which bank easily provide home loan? HDFC Bank AXIS Bank Others

Q.11Which type of loan is used by you? Home purchase loan Home construction loan Home improvement loan Home extension loan Land purchase loan

Q.12 According to you who enjoy good reputation in home loan sector? HDFC Bank AXIS Bank Others

Q.13Are you satisfy with the employees behavior of the bank? Yes No 60

B.Are you satisfy with the employees behavior of the bank? Yes No

Q.14Your opinion about HDFC home loan procedure. Average Good Very Good Excellent

Q.15 Your opinion about AXIS home loan procedure. Average Good Very Good Excellent

Q.16Have you face any difficulty during taking the loan? Yes No If yes then specify___________________________ Q.17 Any suggestions that you want to give

61