PROJECT REPORT ON HOME LOAN

A PROJECT REPORT ON

HOME LOAN OF IDBI BANK

GUIDED BY PROF. WAFIYA WAHID

SUBMITTED BY JAVED SAJID SHAIKH

SUBMITTED TO THE UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION 20-20

ABEDA INAMDAR SENIOR COLLEGE CAMP, PUNE

PROJECT REPORT ON HOME LOAN

DECLARATION I undersigned here by declare that the project entitled A PROJECT REPORT HOME LOAN SCHEME SPONSORED BY THE IDBI BANK. Written and understand by me under the guidance of Prof. Wafiya Wahid. The emprical finding in this report are based on data collected by me While preparing this project report I have not copied from else where.

Date: - 15/03/2011.

PROJECT REPORT ON HOME LOAN

ACKNOWLEDGEMENT This is the work product as a result of cooperation of a number of persons. It therefore gives me great pleasure to acknowledgement the willing, prompt, and generous service rendered by them all

I own my profound sense of gratitude

to my guide Prof.

Wafiya Wahid for his able guidance in completion of this project work.
Finally I fake this opportunity to thank all those who contributed their efforts directly or indirectly in completing this project report.

PROJECT REPORT ON HOME LOAN

INDEX
Sr.

Particulars
Introduction About the study Objectives of the study Scope of the study Limitations of the study. Organization profile History of organization About the organization Board of directors Product/services offered by the Research methodology Concept Primary data and secondary data Tools and techniques of data Collection Conclusion and suggestions Bibliography

Page no.

No.
1 LI 1.2 1.3 1.4 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3

organization

4 5

PROJECT REPORT ON HOME LOAN

INTRODUCTION

PROJECT REPORT ON HOME LOAN

INTRODUCTION

The

IDBI

Bank

provides various schemes & loans which include Education loan, car loan, home loans etc. out of which we are studying Housing Loan. Housing loans are the loans which are taken for the purchasing, construction of new flat and or home. The IDBI Bank has been serving its customers since 57 years through its wide range of branch network spread across the country. Bank have specialized forex and industrial finance branches. It offers services in personal banking segment, commercial banking, demat service and

PROJECT REPORT ON HOME LOAN

has attractive deposit schemes to choose from according to the Individual needs. IDBI Bank has a network of 463 branches and 1 extension counter; all are linked online through a computerized network. The bank has a tie-up with Corporation Bank, Axis Bank, member banks of Cash Tree Group and SBI for ATM usage. IDBI Bank's International Debit Card can be used at any of these ATMs.

Credit Facilities Of THE IDBI BANK :The Bank has variety of credit schemes especially suitable to individuals based on the needs, personal repayment capacity (illustrative only, conditions apply). To Individual etc apart from credit facility to trade, industry, export and priority sector: Housing Finance: It is provided to an individual singly/jointly for the purpose of construction of house/ purchase of ready built house/land / extension of existing house/ repair of house. The amount of finance depends upon the repayment capacity of the applicant.

PROJECT REPORT ON HOME LOAN

Car Finance : It is provided to an individual singly/jointly, firms etc. for the purchase of new brand car for the purpose of personal/ professional/ business needs. The amount of finance depends upon the repayment capacity of the applicant. Loan for consumer durables: It is provided to an individual singly/jointly, firms etc. for the purchase of consumer durables such as TV, Fridge, Air Conditioner, Computer etc. for personal needs. The amount of finance depends upon the repayment capacity of the applicant. Loan against NSC's /LIC policies etc.: It is provided for the purpose of meeting any contingency/ personal needs. The amount of finance depends upon the repayment capacity of the applicant. Loan against Shares: It is provided to an individual singly/jointly, firms etc. against the shares of companies. Loan against Deposits: It is provided against the Term deposit of the bank. Educational loan: It is provided for higher studies.

PROJECT REPORT ON HOME LOAN

Note: On all above loans, the interest is charged on reducing balance method.

ABOUT THE STUDY

PROJECT REPORT ON HOME LOAN

ABOUT THE STUDY

Housing Finance: It is provided to an individual singly/jointly for the purpose of construction of house/ purchase of ready built house/land / extension of repayment capacity of the applicant. existing house/ repair of house. The amount of finance depends upon the

Purpose

:-

Construction

of

new

house/purchase

of

flat/house old or new. Old house/flat not more than 10 yrs repair/renovation of old house Purchase at additional house or flat. Eligibility :- Any individual or group of person over 21 year at age who wishes to construct acquire house or eligible for loan. Amount of loan :- proposal for any amount of loan on is considered depending on repayment capacity at the applicant maximum rs 2500000/-above that which approval at competent authority.36 times at net monthly

PROJECT REPORT ON HOME LOAN

income or 3 times of net annual income or 70% of cost of construction whichever is less. Margin :- 20% Rate of interest:upto Rs.25,000/- 12.24% 25,000/to 2 lacs - 12.24% 2 lacs to 5 lacs-13.26% 5 lacs & above-14.28% Repayment:- Repayment period should not exceed 15 yrs including moratorium period. Security :- equitable mortgage of relative house third party guarantee or security of adequate value in the form of LIC policy, Govt., promissory Notes, shares, debentures, gold ornaments etc. Documents:- Application form, salary certificate, income tax return,(where applicable) title verification, search reports, by banks advocates, agreement of sales duly registered, deed of conveyance duly ratified by banks advocate, blue print of plot, land house, section by competent authority, estimate in case of construction of flat/house Govt. approval values report in case of purchase of ready house/flat allotment letter in case of flats.

PROJECT REPORT ON HOME LOAN

Insurance :- should be insured against floods, earthquakes, fire, riots, and other related risks. Processing :Upto Rs 25,000/- NIL Upto Rs 2 lacs -0.50% of loan Maximum Rs 500/Charges :- Above Rs lacs 0.50% of loan amount. DEMAND FOR HOME LOANS OR HOUSING LOAN :With the booming up of MNCs and a major change in the salary packages, has completely changed the economic structure of the society. The young salaried employees are looking for options to invest their money and real estate has perceived lucrative and prudent to them. The high salaried youngsters either have built or purchased their homes by taking home loan.

Now days it is no longer difficult to get a HFC or home loan

PROJECT REPORT ON HOME LOAN

from bank. The most important issue is how to choose the home loan amount? The amount of loan depends upon borrower's finances, other commitments and more importantly his peace of mind. A huge loan amount will result in greater outflow in the form of EMI from the borrower's pocket. With the rising competition in the home loan segment banks are offering a number of innovative products to attract customers. Many private banks like ICICI bank, HDFC bank, Standard Chartered, Axis bank, IDBI bank, etc. and public sector banks like State Bank of India, Bank of Baroda, IDBI Bank, etc. are offering a number of customized products to suite the requirements of varied customers. A home loan rate is linked to an internally computed reference rate such as prime lending rate (PLR) or mortgage reference rate (MRR). There is a difference of 2% between the reference rate and the effective rate. Whenever this reference rate increases, it pushes up the home loan rates as well.

Consider a loan amount of Rs forty lakh at a rate of 11 percent interest over tenure of 15 years. The EMI amount comes to Rs forty five thousand five hundred. If the loan amount were less, say

PROJECT REPORT ON HOME LOAN

Rs twenty five lakhs, for the same interest rate and tenure, the EMI will work out to be lesser. It means greater the home loan amount, greater will be the EMI outflow and tighter will be the borrower's finances. INQUIRIES BEFORE OPTING FOR A HOME LOAN.
1. 2. 3. 4. 5. 6. 7. 8.

Look deep in your wallet before deciding the property Evaluate market conditions Debt liabilities Increase the down payment Always prepay The family bank The processing fee The fine print

Look deep in your wallet before deciding the property

PROJECT REPORT ON HOME LOAN

So you have chosen and set your heart on a house that is perfect! But have you given some deep thought to whether your wallet will be able to handle your dream? Going for a house that you can't afford to pay for is like eating more food than you can digest. You end up with indigestion.

Look closely at your lifestyle and financial capabilities. Plan for an unfortunate eventuality like loss of job or illnesses and ensure that your wallet will be able to take the pinch for a few months at least.

Look at your other debt liabilities before going in for the home loan

Evaluate market conditions

Understand the real estate market and evaluate if the property prices are stable and not likely to fall further Do your research on home loan interest rates, see if they are likely to decrease or increase in future depending on the existing market conditions, you may not want to lose out on a good deal because you jumped in too early

Debt liabilities Having high credit card outstanding and a number of other loans, not only brings the eligibility for higher loan amount down, it also increases the burden of paying all of these debts off.

PROJECT REPORT ON HOME LOAN

If your home loan EMI is around 10% to 15% bracket of your income, it would be a smart deal. It would be even better if your total debt liability is within the 10-15% range, but normally, that is not the case, so try to pay off all your high interest/long tenure debts sooner.

Increase the down payment

When you go for home loan, you have to pay around 10% to 15% of the project cost and around 85% to 90% is funded by the bank or financial institution. If you have more than the required amount for 'down payment' then pay more, so that youre required debt is reduced significantly. Always prepay Also, when you have any loans try not to extend the loan to its complete tenure. As and when you have excess cash, try to prepay. For example, you could prepay from your yearly bonuses or from your savings from the salary hikes that are expected to happen periodically. Prepaying can lower the tenure and help you save on interest. However, check with your bank from when you can start prepaying, as banks do not allow prepayment during the first six months or the first year of the loan period. Even when they allow prepayment after this time frame, there still would be a prepayment penalty attached. Just make sure the interest saved does not exceed the prepayment fee that you will need to pay the bank. As long as that is taken care of, prepayment is the best way to close a loan early and save significantly on interest. The family bank

It is not essential to opt for the same bank that your brother took his home loan from. Well, brotherly love aside it is better to do your own searching in terms of the deals offered by different banks. Moreover, your brother's offer for the same loan amount and tenure could be different from what is offered to you, as the offers and interest rates vary according to the credit profile of the borrower. The offer that your brother got is according to his credit profile. So, it is always possible that you might be able to get a better deal from some other bank.

The processing fee

If you have nothing in writing from the bank, it is possible that you might lose the processing fee that you pay to bank in case the loan does not get approved. So, either you get something in writing from the bank or factor in all this money for these kinds of losses. The fine print Most of us just close our eyes and sign on the dotted line. What we forget to read are the clauses that are in fine print in the loan agreement. You need to understand the significance and impact of these various clauses before you sign the agreement. Some these clauses to watch out for include the force majeure clause and Reset Clause on Fixed Rates. Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully.

OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY

To study various loans & schemes including government schemes & other financing schemes of housing loans of IDBI Bank.

To know the procedure & practice of loan sanctioned by the bank To discuss recovery strategy and position of bank To suggest for best finance and recovery as well. To suggest the marketing straight of housing loan schemes. To know about housing loans & its features.

SCOPE OF THE STUDY

SCOPE OF THE STUDY To be competitive and successful in modern corporate world, constant capital flow is essential. Many new ways have been evolved to raise money, but as a human being we tend to rely on most favored options .Life can take an adverse turn at any moment. Food, clothing, shelter are the three basic needs of all human beings. In fact shelter is also the very essential need of man. House was supposed to be a home or temple because of it man's individual &family society The studies have a scope of observing schemes & loan schemes of housing loan of The IDBI Bank. The study shows the various rates of interest, eligibility, margin, charges, processing, and the documents required for the home loan or housing finance. The IDBI Bank offers various types of loans which includes personal loan under which housing loan comes. The study shows the awareness about services provided by IDBI Bank. The study is meant to know the impact of housing loan scheme on the minds of customers. life become stable house increases the standards of life and recognition of a men in the

LIMITATIONS OF THE STUDY.

LIMITATIONS OF THE STUDY.

It is very difficult to find out total beneficiaries from the scheme of housing loan.

The study also classified on repayment programmes of loan. It also aims to study the problems generally fatal by the borrowers which repaying the loans.

This much vast cannot be studied at a time unit study.

HISTORY OF ORGANIZATION

HISTORY OF ORGANIZATION Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on July 1, 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBIs public issue in July 1995, the former continues to be the major shareholder (current shareholding: 52.3%). During the four decades of its existence, IDBI has been instrumental not only in establishing a welldeveloped, diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the process of industrial development in the country. IDBI has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of

medium and long-term projects, in consonance with national plans and priorities. Over the years, IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients. IDBI also provides indirect financial assistance by way of refinancing of loans extended by Statelevel financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms. IDBI has played a pioneering role, particularly in the pre-reform era (1964-91),in catalyzing broad based industrial development in the country in keeping with its Government-ordained development banking charter. In pursuance of this mandate, IDBIs activities transcended the confines of pure long-term lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernisation of specific industries, employment generation, entrepreneurship development along with support services for creating a deep and vibrant domestic capital market, including development of apposite institutional framework. Narasimam committee recommends that IDBI should give up its direct financing functions and concentrate only in promotional and refinancing role. But this recommendation was rejected by the government. Latter RBI constituted a committee under the chairmanship of S.H.Khan to

examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking. The committee wanted to the development financial institution to diversify its activity. It recommended to harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking. In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBIs foray into the retail finance sector. The fully-owned housing finance subsidiary has since been renamed IDBI Home finance Limited. In view of the signal changes in the operating environment, following initiation of reforms since the early nineties, Government of India has decided to transform IDBI into a commercial bank without eschewing its secular development finance obligations. The migration to the new business model of commercial banking, with its gateway to low-cost current, savings bank deposits, would help overcome most of the limitations of the current business model of development finance while simultaneously enabling it to diversify its client/ asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament in December 2003. The Act provides for repeal of IDBI Act, corporatisation of IDBI (with majority Government holding; current share: 58.47%) and transformation into a commercial bank. The provisions of the Act have come into force from July 2, 2004 in terms of a Government Notification to this effect. The Notification facilitated formation, incorporation and registration of Industrial Development Bank of India Ltd. as a company under the Companies Act, 1956 and a deemed Banking Company under the Banking Regulation Act

1949 and helped in obtaining requisite regulatory and statutory clearances, including those from RBI. IDBI would commence banking business in accordance with the provisions of the new Act in addition to the business being transacted under IDBI Act, 1964 from October 1, 2004, the Appointed Date notified by the Central Government. IDBI has firmed up the infrastructure, technology platform and reorientation of its human capital to achieve a smooth transition. IDBI Bank, with which the parent IDBI was merged, was a vibrant new generation Bank. The Pvt Bank was the fastest growing banking company in India. The bank was pioneer in adapting to policy of first mover in tier 2 cities. The Bank also had the least NPA and the highest productivity per employee in the banking industry. On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded in principle approval to the merger of IDBI Bank with the Industrial Development Bank of India Ltd. to be formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders and other regulatory and statutory approvals. A mutually gainful proposition with positive implications for all stakeholders and clients, the merger process is expected to be completed during the current financial year ending March 31, 2005. The immediate fall out of the merger of IDBI and idbi bank was the exit of employees of idbi bank. The cultures in the two organizations have taken its toll. The IDBI BANK now is in a growing fold. With its retail banking arm expanding further after the merger of United western Bank. IDBI would continue to provide the extant products and services as part of its development finance role even after its conversion into a banking

company. In addition, the new entity would also provide an array of wholesale and retail banking products, designed to suit the specific needs cash flow requirements of corporates and individuals. In particular, IDBI would leverage the strong corporate relationships built up over the years to offer customised and total financial solutions for all corporate business needs, single-window appraisal for term loans and working capital finance, strategic advisory and hand-holding support at the implementation phase of projects, among others. IDBIs transformation into a commercial bank would provide a gateway to low-cost deposits like Current and Savings Bank Deposits. This would have a positive impact on the Banks overall cost of funds and facilitate lending at more competitive rates to its clients. The new entity would offer various retail products, leveraging upon its existing relationship with retail investors under its existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most preferred brand for providing total financial and banking solutions to corporates and individuals, capitalising on its intimate knowledge of the Indian industry and client requirements and large retail base on the liability side. IDBI upholds the highest standards of corporate governance in its operations. The responsibility for maintaining these high standards of governance lies with its Board of Directors. Two Committees of the Board viz. the Executive Committee and the Audit Committee are adequately empowered to monitor implementation of good corporate governance practices and making necessary disclosures within the framework of legal provisions and banking conventions.

ABOUT THE ORGANIZATION

COMPANY PROFILE IDBI Bank is a Board-managed organisation. The responsibility for the day-to-day management of operations of the Bank is vested with the Chairman & Managing Director and two Deputy Managing Directors, who draw upon the support and expertise of a cross-disciplinary Top Management Team. IDBI Bank Ltds. employee base includes professionals from the fields of accountancy, management, engineering, law, computer technology, banking and economics. IDBI Bank Limited (the Bank), formerly Industrial Development Bank of India, is an India-based commercial bank. The Bank offers an array of corporate banking products under various segments, such as Deposits, Cash Management, Central and State Government agency business (both direct and indirect taxes), Trade Finance and Treasury Products. The Bank operates in four segments: Wholesale Banking, Retail Banking, Treasury Services and Other Banking Operations. IDBI Capital Market Services Limited is a wholly owned subsidiary of the Bank. Its businesses include primary dealing, stock brokering, distribution of financial products, merchant banking, debt arranging and underwriting, portfolio management and research services. IDBI Gilts Limited, a wholly owned subsidiary of the Bank undertakes primary dealer business. IDBI Fortis Life Insurance Company Limited is a joint venture of the Bank, Federal Bank Limited and Fortis Insurance International.

Quick Financial Synopsis BRIEF: For the fiscal year ended 31 March 2009, IDBI Bank Limited's interest income increased 43% to RS118.37B. Net interest income after LLP totaled RS8.6B, up from RS1.04B. Net income increased 3% to RS7.67B. Net interest income reflects an increase in income from interest and investment. Net income was partially offset by an increase in staff cost, higher rental expense, rise in repairs & maintenance and an increase in insurance expense. Company Address IDBI Bank Limited IDBI Tower WTC Complex Cuffe Parade Mumbai 400005 P: +9122.66553355 F: +9122.22181294
Total Employees

BOARD OF DIRECTORS

Mr. Yogesh Agarwal, Chairman & Managing Director

Mr. G.C. Chaturvedi

Mr. Analjit Singh

Ms. Lila Firoz Poonawalla

Mr. K. Narasimha Murthy

Mr. Hiralal Zutshi

Mr. Subhash Tuli

Dr. Sailendra Narain

PRODUCT / SERVICES OFFERED BY THE ORGANIZATION

Home Loans Loans Against Property Education Loans Personal Loan Loan Against Securities Reverse Mortgage Loan Auto Loan Other Products

HOME LOANS Home, sweet home, built out of your dreams. A place where you return after a hard day's work and relax, a place where you share precious moments with your family. A place that gives you a sense of belonging. IDBI Bank helps you realise your long cherished dream of owning your home through hassle free and customer friendly home loans. Presenting IDBI Bank's ultra flexible home loan you have been looking for. We realise what owning your home means to you and your family. LOANS AGAINST PROPERTY We at IDBI realise how important it is to raise money in the face of exigencies. We help you through these difficult situations through our customer friendly Loans against property (Residential & Commercial) product. Loans could be used for:

Education Business

Marriage Purchase or improvement of property Medical treatment or any other personal need.

Maximum amount possible is Rs 500,00,000 subject to repayment capacity and value of property. Check the FAQs for more details. EDUCATION LOANS Education loans from IDBI Bank aim at providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad. With an array of courses to choose from and easy repayment options, IDBI Bank makes sure you get complete financial backing. For more information visit your nearest branch. PERSONAL LOAN Why wait till you save enough money tso fulfill a dream that's just a step away. Take a Personal Loan from IDBI and go ahead and have all the things you've been dreaming of.

Loan up to Rs.10 lacs Attractive Interest Rate Low Processing Fees & Documentation Charges Faster Approval & Minimum Documentation Repayment period up to 60 months No collateral/security

Also, benefit from our Short Term Personal Loans. Enjoy the lowest interest rate for the entire tenure.

Personal Loans from IDBI comes with an insurance cover. This means when times are tough, you'll have an insurance cover to take care of the EMI's. In case of death or disability due to an accident, the principle outstanding will be paid by the insurance company. In case of loss of job, the insurance company will pay the EMIs for up to 3 months Also you can transfer your existing loan to IDBI bank and save on the interest cost. Applying for a Personal Loan is absolutely simple. Just fill in the online form and our representative will get in touch with you shortly. LOAN AGAINST SECURITIES Exigencies in life could crop up at the most unexpected time. As an investor you would have invested in Securities with a long-term perspective in mind but are left with no other option than sell the Securities to meet your urgent financial requirements. Stop worryingIDBI Bank offers Loan Against Securities, which provides liquidity to your Securities without having to sell them. Loan Against Securities is provided in the form of an overdraft facility Against your Securities. It helps you to meet the exigencies in your life, giving you easy and flexible access to short-term funds without the need to sell your Securities. A pledge is created in favour of the Bank and the Drawing Power (DP) is calculated based on the applicable margins set by the Bank. Facility will

be renewed after every 12 months depending on the performance of the account. What makes it more attractive is that you pay only on the amount utilized by you. REVERSE MORTGAGE LOAN IDBI introduces Reverse Mortgage Loan for senior citizens. Senior Citizens are an imperial component of the Indian society. There is significant increase in cost of good health care facilities along with little social security. Senior Citizens require a regular cash flow stream for supplementing pension/other income and addressing their financial needs. Reverse Mortgage seeks to monetize the house as an asset and specifically the owners equity in the house. The scheme involves the Senior Citizen borrower(s) mortgaging the house property to IDBI, in return of periodic payments to the borrower(s) during the latters lifetime to help them in sustaining themselves. THE IDBI ADVANTAGE

Maximum Funding Services at doorstep Simple documentation Personalised services Free legal and technical assistance Attractive rate of interest

AUTO LOAN Getting to drive your dream vehicle can make life seem so much better. Which is why, at IDBI Bank, we offer you Express Auto Loans, with the single minded aim of getting the vehicle you desire. Easy and quick, these loans make sure you take on the roads the way you want to. So, what are you waiting for? Just rush to book your dream machine, while we take care of your loan requirement. FEATURES AND BENEFITS

Maximum Funding Covers wide range of vehicles and high end bikes Repayment period up to 60 months. Repay with easy EMIs. Hassle-free documentation. Attractive Interest rates. Tie-ups with Dealers and Manufacturers

OTHER PRODUCTS The Safe Deposit Locker facility offers invaluable safety for you valuables. We also have on offer a variety of sizes to fit your requirements. The deposit lockers can be operated at your convenience during our extended banking hours. We provide the maximum safety to your valuables that are placed in our Safe Deposit Lockers.

HOW TO RENT A LOCKER

Open a savings bank account with Rs 5,000. Pay a onetime administrative charge (non refundable) including legal fees/stamp paper charges. Pay only one year's rent in advance upfront. No additional fixed deposit required. Our lockers are offered at very competitive rates. Please visit your nearest branch to find out more about the locker charges.

CHAPTER 3 RESEARCH METHODOLOGY

HOME LOANS Key to hassle free home loans Home, sweet home, built out of your dreams. A place where you return after a hard day's work and relax, a place where you share precious moments with your family. A place that gives you a sense of belonging. IDBI Bank helps you realize your long cherished dream of owning your home through hassle free and customer friendly home loans. Presenting IDBI Bank's ultra flexible home loan you have been looking for. We realize what owning your home means to you and your family. You can avail of the Home Loans for constructing a home, purchasing a ready built house/flat, residential plot and even for re-financing existing loans you may have availed from other banks or housing finance companies. Click here to apply. Advantages of IDBI Ultra Flexible Home Loans

Maximum Funding Flexibility of choosing between Floating or Fixed interest rate Attractive rate of interest EMI on daily reducing balance Personalized doorstep service Simple documentation Legal and technical assistance Balance transfer facility

Reassessment and adjustment of applicant's loan eligibility in case of change of income and residence status

Home Loans Features Eligibility Special Insurance Cover Repayment Interest Rates FAQs EMI Calculator Service charges & Fees

VISION STATEMENT "To be trusted partner in progress by leveraging quality human capital and setting global standards of excellence to build the most valued financial conglomerate" PREAMBLE: IDBI Bank Ltd. is committed to creating long term economic value for all its stakeholders, including shareholders, depositors, customers, employees and the society as a whole. IDBI Bank Ltd. is committed to maintaining high standards of ethical and professional conduct in all its corporate activities. This Code of Conduct and Ethics outlines the overall standards that shall guide the actions of IDBI Bank Ltd. and its Directors, officers and employees.

NATIONAL INTEREST: IDBI Bank Ltd. shall continue to be committed in all its actions to benefit the economic development of the nation and shall not engage in any activity that would adversely affect such objective. FINANCIAL REPORTING AND RECORDS: IDBI Bank Ltd. shall continue to prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country. Internal accounting and audit procedures shall fairly and accurately reflect all of IDBI Bank Ltd. business transactions and disposition of assets. CORPORATE DISCLOSURE PRACTICES: IDBI Bank Ltd. shall continue to abide by the corporate disclosure practices as specified by the appropriate external regulatory authorities. COMPETITION: IDBI Bank Ltd. shall market its products and services on its own merits. EQUAL-RIGHTS: IDBI Bank Ltd shall continue to provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability etc. Applicable laws, rules, and guidelines of Government of India/ any other Competent Authority in this regard shall also be observed for this purpose. Employees of IDBI Bank Ltd. shall be treated with dignity and in accordance with the IDBI Bank Ltd. policy to maintain a work environment free of sexual harassment, whether

physical, verbal or psychological. Employee policies and practices shall be administered on a non-discriminatory basis in all matters relating to recruitment, training, compensation, benefits, promotion, transfers and all others terms and conditions of employment. PROHIBITED BUSINESS: IDBI Bank Ltd. shall not enter into any kind of business with any company / organization / entity, of which any of its director of is a proprietor, partner, director, a manager, employee or guarantor or in which one or more directors of IDBI Bank Ltd. together hold substantial interest. Substantial interest, in relation to any company / organization / entity, means any beneficial interest held by one or more of the directors of IDBI Bank Ltd. or by any relative of such director, whether singly or taken together, in the shares of the company / organization / entity, the aggregate amount paid up on which either exceeds five lakh of rupees or 5% of its paid-up share capital, whichever is lesser. QUALITY OF PRODUCTS AND SERVICES: IDBI Bank Ltd. shall continue to be committed to creating new industry standards of excellence in customer service. IDBI Bank Ltd. shall provide innovative and superior quality customer service consistent with the requirements of the customers for their satisfaction. CORPORATE OPPORTUNITY: A Director/ Officer/ Employee must not deprive IDBI Bank Ltd. of an opportunity that belongs to IDBI Bank Ltd., for his/ her own/other's

advantage, if he/she is in a position of diverting the corporate opportunity for own benefit or to others to the detriment of IDBI Bank Ltd. A Director/ Officer/ Employee must not compete with IDBI Bank Ltd. in respect of any business transaction. HEALTH, SAFETY AND ENVIRONMENT: IDBI Bank Ltd. shall strive to provide a safe and healthy working environment at its work places and comply, in the conduct of its business affairs, with all regulations regarding the preservation of the environment of the territories it operates in.

CORPORATE SOCIAL RESPONSIBILITY: IDBI Bank Ltd. shall continue to be committed to be a good corporate citizen not only in compliance with all relevant regulating laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self reliant. PUBLIC REPRESENTATION OF THE COMPANY & THE GROUP: IDBI Bank Ltd. honors the information requirements of the public and its stakeholders. All its external communication will be only by officials/ directors authorized for the purpose. The information for the public constituents and stakeholders, duly approved by the Compliance Officer or other authorized official, as the case may be, shall be disseminated through any of the following media:
The accredited newspaper publications; Web casting on the official web site; Press handouts and press releases; Audio and audio-visuals prepared for the specific

purpose.

USE OF IDBI BANK LTD. NAME LOGO/ TRADEMARKS A Director/ Officer/ Employee shall not use the name of IDBI Bank Ltd., its logo or trademark for personal benefit or for the benefit of persons / entities not forming part of the IDBI Group. SHAREHOLDERS: IDBI Bank Ltd. is committed to enhance shareholder value and shall comply with all regulations and laws that govern shareholders' rights. The Board of Directors' of IDBI Bank Ltd. shall duly and fairly inform its shareholders about all relevant aspects of the organization business and disclose such information in accordance with the respective regulations and agreements. Every employee shall also be responsible for implementation of and compliance with this code. ETHICAL STANDARDS: A Director/ Officer/ Employee of IDBI Bank Ltd. shall conduct all the dealings on behalf of IDBI Bank Ltd. with professionalism, honesty, integrity and high moral and ethical standards. Every Director/ Officer/ Employee of IDBI Bank Ltd. shall be responsible for the implementation of and compliance with the Code in his/ her professional environment, be fair and take action not to discriminate, honor confidentiality and strive to achieve more specific professional responsibilities. INSIDER TRADING Insider Trading involves the improper use of non - public price sensitive information when dealing in securities. Specified employees are

prohibited from engaging in insider trading as detailed in the Code of Conduct for Prevention of Insider Trading. CONDUCT OF STAFF: To uphold the image and dignity of the institution, it is desirable that every director/ officer/ employee of IDBI Bank Ltd. should demonstrate a high degree of conduct and integrity, as under:
a sense of fair play, impartiality and promptness in disposing of

cases and show courtesy and consideration in public dealings;

keeping in mind the objective of IDBI Bank Ltd., to contribute

his/her mite through integrity, dedication and competence;

restrain from participating or assisting in any activity, which is

detrimental to the interest of IDBI Bank Ltd. or is in competition to the interest of IDBI Bank Ltd.;
not use or influence by virtue of the position held in the bank for

obtaining favours of any kind for himself/ herself or any members of family or friends or equivalent person with any constituent/borrower /client/customer;
be cost conscious and plug all wastes and leakages, to remain

competitive;
not to be negligent or show lack of devotion to duty any time and not to show any favoritisms or commit any irregularity

in inviting tenders an awarding contracts or

cultivate too much friendship with the Bank's contractors/suppliers. REGULATORY COMPLIANCE: A Director/ officer/ employee shall, in his business conduct, comply with all applicable laws and regulations. SECURITIES TRANSACTIONS AND CONFIDENTIAL

INFORMATION: A Director/ officer/ employee of IDBI Bank Ltd. and their family members shall not derive any benefit or assist others to derive any benefit from the access to and possession of information about IDBI Bank Ltd. which is not in the public domain and thus constitutes insider information. The Director/ officer/ employee of IDBI Bank Ltd. shall maintain confidentiality of all price sensitive information. Unpublished price sensitive information would be disclosed only to those within the company who need the information to discharge their duty. CONFLICT OF INTEREST: The Directors/ officers/ employees of IDBI Bank Ltd. shall always conduct themselves in an honest and ethical manner and in the best interest of the Bank. Towards this, the directors, officers and employees of IDBI Bank Ltd. shall Endeavour to avoid situations that may lead to an actual or potential conflict between person's private interest and the interest of the Bank, including its affiliates and subsidiaries. While it may be difficult to list all the situations of conflict of interest, the following are illustrative examples of some of the situations, which may constitute a Conflict of interest:

Director/

officer/

employee or

engages which

in

any

business, Ltd.
A

relationship

activity

might

detrimentally conflict with the business of IDBI Bank

Director/ officer/ employee receives improper

personal benefits as a result of his official position in the Bank.

A Director/ officer/ employee is in a position to

make, influence or benefit from the decisions relating to the transaction. If such and other instances of conflict of interest exist due to any historical reasons, adequate disclosures by the interested employees should be made to the management. GIFTS AND DONATIONS: The Director/ officer/ employee of IDBI Bank Ltd. shall not solicit or accept any gifts/donations of more than modest value from a constituent of IDBI Bank Ltd. or from any subordinate employee or from existing/ potential clients or third parties having business dealings with IDBI Bank Ltd. GENDER FRIENDLY WORKPLACE:
As a good corporate citizen, IDBI Bank Ltd. is committed to a

gender friendly workplace. IDBI Bank Ltd. demands, demonstrates

and promotes professional behaviour and respectful treatment of all employees.

Prohibition against participation in politics and standing for

election:
No employee shall take an active part in politics or in any political

demonstration, or stand for election as member of a Municipal Council, district Board or any other Local Body or any Legislative Body. PROTECTION OF BANK'S ASSETS: The assets of IDBI Bank Ltd. shall not be misused but employed for conducting the business for which they are duly authorised.

ETHICS COMMITTEE:

AND

COMPLIANCE

The Ethics and Compliance Committee comprising few independent directors of the Board, an Executive Director, Chief Vigilance Officer of IDBI Bank Ltd. and the Compliance Officer and any other officer so nominated, will oversee the compliance of the Code of Conduct and Ethics.

CONCEPT
1. Home loan is a secured loan 2. Its

required

applicant

and

co

applicant,

co

applicant is mandatory e.g. blood relation of the applicant.

3. Home loan given to two category a) Salaried

b) S

el f Employed.

c)

A.

SALARIED DOCUMENT: a)

Salary Slips for the last 3 months

b) Form 16 for the last 2 year. c) Bank Statement for last 6 months. d) Any existing loans with any bank. e) Whether Installation appearing in bank Statement. f) Whether repayment track record submitted. g) ID Proof submitted. h) Residence Proof submitted i) Photograph of Applicant / Co-applicant. j) Whether Self-attestation made on all document. k) Authority letter to verify bank statement submitted. l) Processing Fees PF Cheque 5515with bank name. B. SELF EMPLOYED: a) 3 year of ITR. b) 1 year Bank Statement of Saving A/c.

c) Any existing loans with any bank. d) Whether

Installation

appearing

in

bank

Statement.
e) Whether repayment track record submitted. f) ID Proof submitted. g) Residence Proof submitted h) Photograph of Applicant / Co-applicant. i) Whether

Self-attestation

made

on

all

document.
j) Authority letter to verify bank statement

submitted.
k) Profit and Loss A/c copies for 1 year should

be submitted.
l) Profile of Business / Company submitted m) Processing Fees P.F. Cheque 5515 with

bank name.
4. LTV FOR RESIDENTIAL PROPERTY: - 85% LTV of

Market Value or 100% of Agreement + Stamp Duty + Registration + Amenities Agreement (whichever is lower).
5. BANK CHARGES: 1. .5% + Service Tax 2. 8.2% rate of interest for first 2 years (up to

March 2012).
3. Letter according to bank O.C.R Value. 4. Maximum tenure 25 years.

5. Pre payment charges 0% of the outstanding loan

amount.
6. 2% charges of the pre closure of the loan

amount.
7.

PROPERTY AGE: - Maximum 50 years of age till the loan is approved.

8.

CUSTOMER AGE: -

1. Salaried 21 60 year. 2. Self Employed 25 65 year. 3. Co-Applicant should not be minor.

9.

UNDER CONSTRUCTION PROPERTY: - Minimum 70% construction work should be completed by the builder.

10. NEGATIVE PROFILE: 1. Builder. 2. Policemen. 3. Estate Agent. 4. Lawyer 5. Tours & Travels Agent. 11. NEGATIVE AREA: 1. Blue Area (Red Light Area).

e.g. Bhawani Peth, Nana Peth, Kondhwa & Mitthanagar. Reason: - Because there is no recovery of money, if the person staying in red light area wanted to

buy a home in good area than bank will sanction loan.

12.

GAUTAN PROPERTY.

Property allotted by the government to the people in which the land is of no use, in this property loan is not allotted.
13.

FOREST LAND. In forest area no loan is given by the bank.

PROCEDURE FOR HOME LOAN

1. Document (submission with form).

SALARIED DOCUMENT: a) Salary Slips for the last 3 months b) Form 16 for the last 2 year. c) Bank Statement for last 6 months. d) Any existing loans with any bank. e) Whether Installation appearing in bank Statement. f) Whether repayment track record submitted. g) ID Proof submitted. h) Residence Proof submitted i) Photograph of Applicant / Co-applicant. j) Whether Self-attestation made on all document. k) Authority letter to verify bank statement submitted. l) Processing Fees PF Cheque 5515with bank name.

SELF EMPLOYED: a) 3 year of ITR. b) 1 year Bank Statement of Saving A/c. c) Any existing loans with any bank. d) Whether

Installation appearing in bank

Statement.
e) Whether

repayment

track

record

submitted.

f) ID Proof submitted. g) Residence Proof submitted h) Photograph of Applicant / Co-applicant. i) Whether

Self-attestation

made

on

all

document.
j) Authority letter to verify bank statement

submitted.
k) Profit and Loss A/c copies for 1 year should

be submitted.
l) Profile of Business / Company submitted m) Processing Fees P.F. Cheque 5515 with

bank name.

2. CIBIL (India's first credit information bureau) is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports. As on September 2009, CIBIL has an information base on over 140 million consumer trades, and 4 million commercial trades which continues to grow at a fast pace. CIBIL shares credit information with its 175 strong member base on the principle of reciprocity. CIBILs members include all leading banks, financial institutions, non-banking financial companies, housing finance companies, state financial corporations and credit card companies.

CIBIL creates value for financial institutions by providing objective information that helps them manage risk and devise appropriate lending strategies, thus reducing cost and maximizing portfolio profitability. CIBIL benefits both credit grantors and consumers by collecting, analyzing, and delivering information on credit histories of millions of consumers and businesses. With information from CIBIL, credit grantors are empowered to make sound and informed credit decisions. ORIGIN OF CIBIL The need of credit information system was increasingly felt in order to enable informed credit decisions and aid fact based risk management. It was also imperative to arrest accretion of fresh NPAs in the banking system through an efficient system of credit information on borrowers as a first step in credit risk management. In this context, the requirement of an adequate, comprehensive and reliable information system on the borrowers through an efficient database system was keenly felt by the Reserve Bank of India/ Government as well as credit institutions. A Working Group (Chairman: Shri N.H. Siddiqui) with representatives from select public sector banks, IDBI, ICICI, Indian Banks Association and Reserve Bank was constituted by the Reserve Bank in the year 1999, to explore the possibilities of setting up a Credit Information Bureau (CIB). The Working Group had recommended setting up a CIB under the Companies Act, 1956 with equity participation from commercial banks, FIs and NBFCs registered with the Reserve Bank. As per the recommendations made by the Working Group, Credit Information Bureau (India) Ltd., (CIBIL) was set up in January 2001.

CIBIL was promoted by the State Bank of India, Housing Development Finance Corporation Limited , Dun & Bradstreet Information Services India Private Limited and TransUnion International Inc. The shareholding pattern was as follows:

SBI 40% HDFC 40% Dun & Bradstreet 10% Trans Union 10%

FAST FACTS Business: CIBIL provides comprehensive credit information on consumer and commercial borrowers to credit grantors in India. CIBILs advanced analytic and risk management tools help credit grantors mitigate risk and ensure superior portfolio performance. CIBIL has two divisions- Consumer Bureau and Commercial Bureau. o Consumer Bureau was launched in 2004 with 4 million records o Commercial Bureau was launched in 2006 with 0.7 million records o CIBIL has grown phenomenally in the last five years, and houses credit histories on over 140 million trades across individuals and businesses Members: CIBILs has over 175 strong member base that includes all leading banks, financial institutions, non-banking financial companies and housing finance companies. Security Standards: CIBIL is ISO 27001:2005 certified- the most recognized security standard in the world. CIBIL is one of the 1000 companies in the world, which have achieved ISO 27001 certification, and one of the first few in India.

 Headquarter: Mumbai Managing Director: Mr. Arun Thukral Technical Partners:

3. Verification: - There are four step for verification 1. Telephonic Verification. 2. Personal Verification. 3. Office Verification. 4. Resident Verification.

(If during the process of verification if any wrong information mission detected for e.g. document then Rs. 2000 + service tax will be deducted and the remaining amount will be refunded to the customer).

TELEPHONIC VERIFICATION Phone Verification Reverse Phone Verification

Phone Notification

Sms Notification

PERSONAL VERIFICATION

4. Legal & Technical Report: 1) Builder Document. 2) Resale Property Document.

1. Builder Document: a) Original Agreement. b) Approved Plan Copy. c) Builder NOC. d) Ocupine Certificate (O.C.) & Commencement

Certificate (C.C.).
2. Resale Property Document: a) All previous agreement. b) Buyer & Seller Agreement required (current agreement). c) Share Certificate. d) N.O.C. e) O.C. & C.C. Copy required. f) P.M.C. or P.C.M.C. Approved Plan.

In case during the visit of the bank if the employer found any illegal process 5515 cheque will not be refunded by bank

LEGAL AND TECHNICAL REPORT SUBMITTED BY THE ADVOCATE OF IDBI BANK Ref. No. SEC/VAL/FB/MAR/13-2010 2010 12th March,

Sr. No. A. 1. 2.

Item Description GENERAL DETAILS Name of Customer Property Address File

Description

3. 4. 5.

Landmark Date of Inspection Telephone No

B. 1. 1A 2. 3. 4.

SURROUNDING LOCALITY DETAILS Ward No. / Municipal Land No Classification of Property Vicinity Type Proximity to Civic Amenities Urban Residential Middle Class 1. Nearest Railway Station Pune Railway Station is 4 to 5 kms away from the site. 2. Nearest Bus Stop Pune Station. 3. Nearest Hospital Hospitals are within 1 KM from building under reference. 4. Nearest route Map / accessibility: Auto Rickshaw from Pune Station towards Koregaon Park. Approximately 20-25kms from Pune Station Residential Flat Residential Flat NA Type building R.C.C. Framed Structure No. of Floors Stilt + 10 upper floors No. of Lifts Two Lifts.

5.

Distance from Nearest Branch of Bank

C. 1. 2. 3. D

PROPERTY DETAILS Type of Property Type of Usages of entire Additional Amenities Subject Property Details

No. SEC/VAL/FB/MAR/13-2010 1. 2. E 1. 2. 3. 4. 5. 6. 7. i. ii. Type of Premises Residential Flat. Occupied by Vacant flat STRUCTURAL DETAILS Type of Structure Age RCC frame structure of property No. of Floors No of Wings No. of Flats on Stilt + 10 upper floors ---4 flats per floors

each Floor No of lifts in Each ---Age of Property New Construction Estimated Further Life 60 Years (Subject to proper care & maintenance) QUALITY OF CONSTRUCTION Exteriors Satisfactory Beam & Good Good Good Structurally building was found in satisfactory condition at the Vitrified / Marbonite flooring ---R.C.C Two Lifts Yes. Amended permission CC. Dt. 29/06/2006. Ref. No. VP. NO. 2003/140/TMC/TDD/401 for Bldg A - Gr. (pt) + St. + 10 upper floors Bldg B - St. + 10 upper floors Eight floor 2 BHK + W.C. + Bath + Terrace Vitrified / Marbonite flooring Standard TW frame door

iii. column Appearance of Building of iv. the Maintenance v. vi. vii. viii. ix. X. the Building Common Areas Remark Flooring Finishing Roofing & Terracing No of Lifts Construction is as per Approved / Sanctioned / plan Floor wise built up F 1. 2. 3 4. 5. 6. area UNIT DETAILS Situated on floor No Internal Composition Flooring Quality of Fittings Wood Work Remark

Ref. No. SEC/VAL/FB/FEB/13-2010 G 1. 2. 3. 4 5 6 7 8. VALUATION Carpet Area (sqft) Loading For BUA BUA (sqft) Current Government Current Market Rate Recommended Rate Basis for Recommended Final ValuationRate 769 sq. ft + 45 sq.ft. Terrace area (As per site ---1038 Sq.ft. SBUA (As per site information) NA Rs. 3,750/- to Rs. 4,250/Rs. 4,000/Base on inquiries made from reliable market sources Super Built up Area: 1038 Sq.ft Rate Rs. 4,000/- Per sq.ft Rs. 37,36,800/Rs. 37,77,850/-

9. Distress Valuation 10. Agreement Value 8B

Date of Registration Dt. 08/02/2010. Regd. No. TNN5 - 01356/2010 11 Property Bounded by East: Road West: B H Remarks wing ...... North:

Encl: I hereby declare that: 1. I have deputed my representative Mr. personally inspected the property on 11/02/2010. 2. I have no direct or indirect interest in the property valued. I certify that the information's are correct to the best of my/our knowledge and I fix the valuation at Rs. 41, 52,000/- (Rupees Forty One Lacs Fifty Two Thousand Only)as on 11/02/2010. Has

ASSUMPTIONS AND NOTES OF VALUATION; a) We are not aware of any outstanding dues, society taxes, outgoings etc., if any pertaining to the residential unit under consideration. As no details were furnished, we have assumed that all taxes are paid to date. b) We are valuing the property assuming vacant possession, clear title, without any encumbrances or legal impediments and no liability & assuming that the structure is legal & having legal sanction for residential usage to the extent in use & occupation. c) d) The areas are as site information. We are giving an opinion regarding the value of the flat. The legality & ownership of the property may be checked by the bank/financing authority.
5. Disbursement: a) Original Agreement. b) N.O.C. c) Approved Plan Copy. 6. Balance P.F. Amount + Service Tax.

Processing fees cheque 5515 in the form of bank name + service tax is charged in the form of demand draft.
7. Cheque is issued by the bank.

3.2

PRIMARY DATA AND SECONDARY DATA

1. Primary Data: - Primary data consists of original information

gathered from Mr. Vikas Salunke Senior Sales Officer of IDBI Bank. The primary data was collected through personal interviews. Personal interview is the most common instrument in collecting primary data.
2. Secondary Data: - Secondary data may be defined as data that has

been collected from internet and other source for the purpose of present study. Any data that is available prior to the commencement of the research project is secondary data and it is called historic data.

TOOLS & TECHNIQUES OF DATA COLLECTION

TOOLS & TECHNIQUES OF DATA COLLECTION SAMPLING METHOD: - Here the researcher adopted the survey method of analytical study.A schedule was used to collect the information through personal interviews and through the internet study from the IDBI Bank. SAMPLE DESIGN: - The simple random sampling method was used to conduct the study. It was done through the interview which was personal and the data was collected from the net itself. DIVISIONS OF DATA: - There mainly two types through which the data can be collected1. Primary data 2. Secondary data 1. PRIMARY DATA:- Primary data consists of original information gathered for the specific purpose.The primary data was collected through personal interviews.Personal interviews is the most common instrument in collecting primary data. 2. SECONDARY DATA:- Secondary data may be defined as data that has been collected earlier for some purpose other than the purpose of the present study. Any data that is available prior to the commencement of the research project is secondary data and it is called hisotric data.

CONCLUSION & SUGGESTION

CONCLUSIONS To be competitive and successful in modern corporate world, constant capital flow is essential. Many new ways have been evolved to raise money, but as a human being we tend to rely on most favored options .Life can take a adverse turn at any moment. Food, clothing, shelter are the three basic needs of all human beings. In fact shelter is also the very essential need of man. House was supposed to be a home or temple because of it man's individual &family life become stable house increases the standards of life and recognition of a men in the society. As we observe the trends in Indian financial sector is changing rapidly through innovation, dependability of loans and advances has also increased and much awareness of this concept has been found. Loans and advances have becomes the important source of raising the finance among the individual. The advantage with loans is that you design your repayment period as well as monthly installments according to your financial capacities. It is found that the customer awareness about IDBI Bank is good satisfied with the financial performance of IDBI Bank & facility in IDBI Bank. It was found from the analysis the majority of people referred housing loan scheme for scheme class societies as compared to others. It is found that the majority of people were satisfied with the

services by the IDBI Bank. SUGGESTIONS o It is suggested that if the co. wants to stable in the market with other competitors, the co. will create more & more relation with customers through advertisements in news papers, magazines, & televisions also. o IDBI Bank would create good relation with customers by appointing some more field officers in rural area. o I would like to suggest IDBI Bank that, they should increase no. of installments more than the current to attract more customers o There is unawareness among the individuals about IDBI Bank, they should be given proper knowledge and guidance about the housing loans schemes. o I would like to suggest IDBI Bank that they should elect some more recovery officers to collect the installments regularly from the customers and give info to customers. o I would like to suggest IDBI Bank that they should decrease the rate of interest to attract more customers.

BIBLIOGRAPHY
o www.idbi.com o www.google.com o www.yahoo.com o www. idbibank.com