SUBMITTED TO

UNIVERSITY OF MUMBAI

SHREE SHANKAR NARAYAN COLLEGE

NAVGHAR ROAD, BHAYANDER (E) THANE-
401105.

ACADEMIC YEAR-2016-2017.
T.Y.B.M.S.
PROJECT-STUDY OF HOME LOAN ON HDFC AND
ICICI
GUIDED BY
Prof. Mackrina Tuscano

SUBMITTED BY
KHAN SHAHADAT HUSAIN
 SHREE SHANKAR NARAYAN COLLEGE

OF ARTS AND COMMERCE

NAVGHAR ROAD, BHAYANDER (E), THANE-401105.

BACHELOR OF MANAGEMENT STUDIES

SEMESTER V

ACADEMIC YEAR (2016 2017)

PROJECT ON

Home loan On HDFC and ICICI Bank

SUBMITTED BY.

KHAN SHAHADAT HUSAIN

PROJECT GUIDE:

Prof. Mackrina Tuscano

 Declaration:
I Khan Shahadat Husain, student of T.Y.BMS from S.N.College of
Arts, Commerce & Science, hereby declare that I have completed this project on
Home Loan On HDFC and ICICI Bank and all the information submitted
is true and original to the best of my knowledge.

I also declare that the project which has been in the partial fulfillment
of the requirement of the Mumbai University is the result of my efforts.

Date: Signature of Student

Khan Shahadat Husain

 ACKNOWLEDGEMENT

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me

a chance to do this project.

I take this opportunity to express my profound gratitude to management of

Shankar Narayan College for giving me this completion of my project. A
special thanks to Principal Dr.V.N.Yadav of Shankar Narayan College for
their kind co-operation in the completion of my project.

A special vote of thanks to Mr. Vivek Wankhede who is our HOD &
Prof.Mackrina Tuscano our project guide for their most sincere, useful and
encouraging contribution through-out the project span.

I am also grateful to my friends for giving support in my project. Lastly I would

like to thank each and every person who helped me in completing my project
specially my Parents.

Signature of the student

(Shahadat Khan)
 INDEX

Chapter: 1 Page
No.
INTRODUCTION........ 1
HISTORY. 2
ADVANTAGES OF HOME LOANS.. 3
DISADVANTAGES OF HOME LOANS 4

Chapter: 2 5
RESEARCH METHODOLOGY.. 5
DATA COLLECTION. 5
Primary... 5
Secondary... 5

Chapter: 3 6
A) ICICI Bank 6
Introduction .. 6
History. 7
About ICICI Bank Home Loans 8
SWOT Analysis of ICICI bank. 9
Home loan of ICICI Bank.. 10
Documentation needed.. 13
ICICI Bank Home Loan Interest Rates.. 14
Features and Benefits of ICICI Housing Loan.. 19
Frequently Asked Questions (FAQs). 20
B) HDFC Bank 21
Introduction. 21
History. 22
SWOT analysis of HDFC 24
Home loan of HDFC Bank.. 25
Documentation needed 28
HDFC Limited Home Loan Interest Rates. 30
Features and Benefits of HDFC Housing Loans 34
HDFC Home Loan Eligibility. 35
HDFC Home Loan Repayment. 38
 FAQs about HDFC Bank Home Loans.. 39
C) COMPARISION OF BANKS ICICI V/s HDFC 41
COMPARITIVE STATEMENT OF HOME LOAN. 41

Chapter: 4 44
Analysis and Interpretation 44

Chapter: 5 55
Finding 55

Chapter: 6 56
Recommendation & .. 56
Conclusion. 57
Chapter: 7 58
Bibliography.. 58
ANNEXURE.. 59
Questionnaire 60
 Objective
The following are the objective of the present study:
1. The main objective of doing this project is to study the corporate
culture.
2. To analyze Indian home loan market and its growing trends.
3. To analyze various methods of operating a home loan.
4. To gain knowledge about various home loan products.
5. To know various rates available while providing home loan.
 1

Chapter: 1

Introduction
Housing is a primary human need next in importance only to food and clothing. A first
priority for a youngster who begins life is therefore to plan for a house. This takes precedence
over other household expenditure and creature needs. Housing, however, is a major
expenditure and cannot be funded out of a family's normal monthly income or savings. The
prospective homeowner must look for a loan substantial in size and so structured that he can
repay it over a longer period of time, in many cases almost one's entire working life. Loan is
offered to a borrower to purchase or build a new house on the basis of his/her eligibility and
the bank's lending rules. One of the important basic human needs is shelter. House is the
ultimatedream of every middle class family. Government gaveencouragement for house
finance subsidiaries by offering number of tax concessions to individuals. With
the overall encouragementgiven to this sector, a number of players entered in housingfinance.
One of the most important benefits of taking a home loan is the interest rate that is allowed on
the home loan. Fixed and
variableinterest rate options are also available for home loans. Manyfinanciers also offer
home improvement loans at the same interest rate as they offer the home loans.

What Is a Loan?
A loan is when you receive money from a friend, bank or financial institution in exchange for
future repayment of the principal, plus interest. The principal is the amount you borrowed,
and the interest is the amount charged for receiving the loan. Since lenders are taking a risk
that you may not repay the loan, they have to offset that risk by charging a fee - known as
interest. Loans typically are secured or unsecured. A secured loan involves pledging an asset
(such as a car, boat or house) as collateral for the loan. If the borrower defaults, or doesn't pay
back the loan, the lender takes possession of the asset. An unsecured loan option is preferred,
but not as common. If the borrower doesn't pay back the unsecured loan, the lender doesn't
have the right to take anything in return

Definition of 'Home Loan'

A sum of money borrowed from a financial institution or bank to purchase a house. Home
loans consist of an adjustable or fixed interest rate and payment terms.
 2

History
Home loans came into widespread use in the United States in the boom years of the late
1800s. Since the average person usually cannot afford to pay cash for something as expensive
as a home, lenders began offering loans for the difference between the purchase price of a
home and the cash down payment supplied by the buyer. These loans were interest-only loans
of between five and 10 years that were due in full at the end of the loan term. Homeowners
would refinance the loan at the end of each term or save up enough cash to pay off the loan in
the meantime. The Great Depression and its resulting foreclosures demanded a move to the
modern amortized mortgage, which configures payments into both principal and interest
portions. These 15- to 30-year loans pay off the home by the end of the loan term.

Function
The most common purpose of a home loan is to provide the funds a buyer needs to purchase a
home. Home equity loans allow a homeowner to borrow against the difference between the
homes value and the current loan balance, or equity. Investor loans permit buyers to
purchase homes as rental properties or to fix up and sell at a profit.
 3

ADVANTAGES OF HOME LOANS:-

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

(i) Attractive interest rates:-

The various banks offer attractive interest rates to boost and help their customers. Many
banks provide loans on fixed or floating rates to facilitate consumers as per their needs.

(ii) Help in owning a home:-

The home availed by a person with the help of banks, because they provide technical and
financial assistance to customers for owning their dream home.

(iii) No requirement of guarantor:-

The commercial banks now a day, liberlise their laws regarding home loans. Some of banks
dont even require the guarantor to grant loan to their consumers. They also make consumers
free by reliving him to find a guarantor to complete the proceedings of availing loan.

(iv) Door-Step Services:-

These door to step services are provided from enquiry stage to the final disbursement takes
place such services are beneficial for customers in present busy life. Banks like ICICI bank
and standard chartered bank provide door to step services to customers to borrow loan.

(v) Loan period:-

There are many banks which provide maximum loan tenures upto 15-20 years based on the
loan amount and the creatibility of customers. This relieves the customers to repay loan
amount till a long period.

(vi) For accidental death insurance:-

Some banks provide free accidental death insurance with housing loan which is
also beneficial for the customers.

These benefits or advantages of home loans are responsible for making than so popular
among customer that a person who dont have their home and want to buy, they doit with
home loan. Home loans help such persons in making their dream home.
 4

DISADVANTAGES OF HOME LOANS:-

The main disadvantages of home loans are high lightened as below:

(i) Delays in processing:-

Many times, there are huge delays in processing of providing home loans because various
formulations to be fulfilled in this process. Due to these delays customers feel mentally as
well as financially weak.

(ii)Fluctuating interest rates :-

Some banks give home loans at floating rates, which fluctuate at Different intervals due to
some reasons. These changes sometimes, may lead to increase in interest rate which will
increase the cost of home loans to the customers

(iii)High Cost:-

The public sector banks charge high processing cost for home loans sanctioning. They are
forced to pay serious charges at various stages to fulfill the requirements. Some consumers
are not able to pay such charges so such people could not avail the benefits of home loan
schemes.

(iii)Problems in disbursement:-

There are many problems in disbursement of home loan amount. There are some delay in
disbursement of loan amount to the customers due to legal formalities. This causes problems
to the customers.

These are limitations or disadvantages of home loans. But sometimes some banks charges
high installments to repay loan amount. Such also causes problem to
customers.These limitations can be removed by providing good and promote services to the
customers.
 5

Chapter: 2

RESEARCH METHODOLOGY

Methodology is an essential part of research to find answers to research objective that

initiates the same. Therefore it figures as the important part of any study. This chapter
focuses on the design and research method utilized in the study. In addition, the procedure
followed to collect, capture, process and analyze data is presented. The research approach
used in the study is presented below.

TYPES OF RESEARCH METHODOLOGY

There are various classification of research used. However, these are not sharply
distinguished from one another. The present study is exploratory in nature to provide a clear
guidance for empirical search. A study of related and pertinent books and articles along with
clues for further investigation lead to formulation of workable hypotheses.

The research has also presented it as descriptive research where focus is on fact finding
investigation with adequate interpretation. It is design to gather descriptive information for
formulating studies that are more sophisticated. Data is collected through survey method for
testing hypotheses and interpreting relationship. Analytical study is used. Thus the study
makes use of quantitative research allow the research to examine relationship and differences
among variables.

DATA COLLECTION:
1. Primary:
Data which is collected manually are known as Primary data. In this Project the data
is collected through questionnaires by the researcher.

2. Secondary:
Data of the project has been collected from various sources. A library research was
done and Internet research was done to find out the materials about specific topic of
research. These include newspapers, magazines, websites, and books on finance and
so on.
 6

Chapter: 3
A) ICICI Bank

Introduction:
Financial services and wide range of banking products are offered by ICICI Group and retail
customers through a variety of delivery channels and through its specialized group
companies, subsidiaries and affiliates in the areas of personal banking, investment banking,
life and general insurance, venture capital and asset management. In their respective sectors
ICICI Group companies have enhanced and maintained their leadership position with the
support of strong customer focus.

ICICI Bank is India's largest private sector bank with total assets of Rs. 7,206.95 billion (US$
109 billion) at March 31, 2016 and profit after tax Rs. 97.26 billion (US$ 1,468 million) for
the year ended March 31, 2016. ICICI Bank currently has a network of 4,450 Branches and
14,295 ATM's across India.
 7

History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity.
 8

About ICICI Bank Home Loans:

Building a house is a lot more than just making a huge investment, it is a very special
experience. Be it planning the architecture to choosing the right apartment to designing its
interiors; the joy and satisfaction of being a proud owner of your dream home is out of the
world. But there is a flipside to every good thing. Similarly, acquiring a home can be is an
extremely tedious, long and expensive process. The practical aspects of buying,
constructing or renovating a house involves immense responsibility, impeccable research
and thorough planning. For most of us, getting the right home loan scheme (which
perfectly suits our needs) and repaying it with an interest can be a mammoth task, or
maybe quite impossible. Though some people settle for a mortgage, it may not be the
wisest option. In this scenario, the best thing to opt for is a comprehensive home loan
plan. Most leading banks extend financial assistance to customers in the form of home
loans, with the purpose of helping them to buy a house.

ICICI Bank is one on of Indias largest private sector banks. It is an extremely popular
bank as well and has wide loyal customer base of. It boasts of a wide network comprising
4050 branches 12,890 ATMs across India. ICICI Banks loyal customers swear by its
swift service, supportive staff and brilliant home loan plans. The bank offers home loans
which have been especially designed to suit every customers varied requirement. This
thoughtful and innovative gesture by ICICI bank makes it really easy for customers to get
the best deal.
 9

SWOT Analysis of ICICI bank

Strengths:
ICICI is the second largest bank in terms of total assets and market share

One of the major strength of ICICI bank according to financial analysts is its strong
and transparent balance sheet

ICICI bank has first mover advantage in many of the banking and financial services.
ICICI bank is the first bank in India to introduce complete mobile banking solutions
and jewelry card

The bank has PAN India presence of around 2,567 branches and 8003 ATMs

ICICI bank has the longest working hours and additional services offering at
ATMs which attracts customers
Weaknesses:
Customer support of ICICI section is not performing well in terms of resolving
complaints

There are lot of consumer complaints filed against ICICI

The bank service charges are comparatively higher

Opportunities:
Banking sector is expected to grow at a rate of 17% in the next three years

The concept of saving in banks and investing in financial products is increasing in

rural areas as more than 62% percentage of Indias population is still in rural areas.

ICICI bank is expected to have 20% credit growth in the coming years.

Threats:
HDFC is the major competitor for ICICI, and other upcoming banks like AXIS, HS C
impose a major threat

RBI allowed foreign banks to invest up to 74% in Indian banking

Though customer acquisition is high on one side, the unsatisfied customers are
increasing and make them to switch to other banks
 10

Home loan of ICICI Bank

Youre probably eligible for an ICICI Bank Home Loan if you are

At least 21 years old

Less than 65 years old

Salaried / Self-employed with regular income

Earn more than the minimum income required

 11

Your ICICI Bank Home Loan amount eligibility is based on these factors

EMI limited to about 50% of monthly income

Loan capped @ 80% of property value

EMIs of other loans lower your eligibility

 12

Increase your eligible ICICI Bank Home Loan amount by these steps

Make your spouse a co-applicant, and her income will add to your eligibility

Choose longer tenure loan up to 30 years

Alternatively add your parents

 13

Documentation needed to apply

1. Signed application form with photograph

2. ID and residence proof

3. Processing fee cheque

4. Last 6 months bank statements

5. Documentation for salaried applicants:

Last 3 months salary-slips

Form 16 or Income Tax Returns

6. Documentation for self-employed applicants:

Education qualification certificate & proof of business existence

Last 3 years Income Tax Returns with computation of Income

Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
 14

ICICI Bank Home Loan Interest Rates

Updated on 10 Oct 2016

ICICI Bank Home Loan Details

9.45% to 9.70% for General Borrowers

Interest Rate
9.40% to 9.65% for Women Borrowers

Processing Fees 0.50% of the loan amount or Rs.11500 whichever is minimum

Loan Tenure 3 year to 30 years

Partial pre-
payment Nil
Charges

Pre-closure
Nil
Charges

Guarantor
No Guarantor Required
Requirement

Home Loans from ICICI Bank:

It is a really a very quick and easy process to get a home loan from ICICI Bank. With a
higher eligibility, the bank also offers lower EMIs at affordable and attractive rates of
interest. Keeping up evolving technology, ICICI bank has introduced a new system by which
you can go through the application process Tablet and Smart phone. This ensures faster
processing and quick disbursal of the loan.

You can avail home loan from ICICI to buy your dream house (of your choice), or from
ICICI banks approved projects. The also offers pre-approved home loans to selected
customers, and existing customers get to enjoy reduced documentation process.
 15

ICICI Bank Home Loan Interest Rate Details:

Before we get into the absolute numbers, it is essential to know how the interest rates are
actually calculated. Like other home loans available from other banks in India, ICICI Bank
home loans also offer an MLCR based interest rate calculation. It is essential to understand
that the ICICI Bank floating rate home loan is benchmarked to I-MCLR-1Y. Effective Aug
01, 2016 I-MCLR-1Y is 9.10%. But the interest rates are calculated differently for different
groups based on demographics which include:

Salaried Applicants:

Home Loan Effective Rate of

Type of Interest Rate Rate
Amount Interest

Up to 5 crore I-MCLR-1Y + 0.35% 9.45 percent

Floating Interest Rate

Above 5
I-MCLR-1Y + 0.60% 9.70 percent
crore

Up to 5 crore I-MCLR-1Y + 0.35% 9.45 percent

Fixed Interest Rate (2
and 3 years) Above 5
I-MCLR-1Y + 0.60% 9.70 percent
crore

Up to 30
I-MCLR-1Y + 0.35% 9.45 percent
lakhs
Fixed Interest Rate (5
and 10 years)
Above 30 I-MCLR-1Y + 9.55percent to
lakhs (0.45% to 0.70%) 9.80percent

Fixed Interest Rate Up to 30

9.75 percent
(Full Tenure) lakhs
 16

Above 30
9.85 percent to 10.10 percent
lakhs

Self-employed Applicants:

Type of Interest Home Loan Effective Rate of

Rate
Rate Amount Interest

I-MCLR-1Y +
Up to 1.5 crore 9.45 percent
0.35%
Floating Interest
Rate
I-MCLR-1Y + 9.55 percent to 9.70
Above 1.5 crore
(0.45% to 0.60%) percent

I-MCLR-1Y +
Up to 5 crore 9.45 percent
0.35%
Fixed Interest Rate
(2 and 3 years)
I-MCLR-1Y +
Above 5 crore 9.70 percent
(0.45% to 0.60%)

I-MCLR-1Y +
Up to 30 lakhs 9.45 percent
0.35%
Fixed Interest Rate
(5 and 10 years)
I-MCLR-1Y + 9.55 percent to 9.80
Above 30 lakhs
(0.45% to 0.70%) percent

Up to 30 lakhs 9.75 percent

Fixed Interest Rate
(Full Tenure)
Above 30 lakhs 9.85 percent to 10.10 percent
 17

Women Applicants:

Type of Interest Home Loan Effective Rate of

Rate
Rate Amount Interest

I-MCLR-1Y +
Up to 5 crore 9.40 percent
0.30%
Floating Interest
Rate
I-MCLR-1Y +
Above 5 crore 9.65 percent
0.55%

I-MCLR-1Y +
Up to 30 lakhs 9.4 percent
0.30%

Fixed Interest Rate 30 lakhs to 5 I-MCLR-1Y +

9.5 percent
(5 and 10 years) crores 0.40%

I-MCLR-1Y +
Above 5 crore 9.75 percent
0.65%

Up to 30 lakhs 9.70 percent

Fixed Interest Rate

Above 30 lakhs 9.80 percent
(Full Tenure)

Above 5 crore 10.05 percent

 18

ICICI Bank Home Loan Calculator:

ICICI Bank offers unique and dynamic tools like EMI calculator and Eligibility calculator to
help customers with choosing the right home loan. With the use of the eligibility calculator
you can find the home loan amount you are eligible to avail for, by entering certain basic
details/parameters, and the EMI calculator calculates the monthly repayment amount you
need to make towards the loan. For this you need to enter basic details like the loan tenure
and loan amount. Make use of these tools to get the best deal.

ICICI Home Loan Balance Transfer:

ICICI bank gives the privilege of lowering the EMI burden to its customers, and allows them
to make savings by transferring their current home loan scheme from any other Bank to
ICICI bank. The balance transfer feature is very innovative and a very thoughtful gesture on
the banks part.
 19

Features and Benefits of ICICI Housing Loan:

Affordable interest rates and both floating and fixed options

The home loan can be sanctioned before selecting the property

A really smooth simplified documentation process and even faster documentation

process for existing customers

You get the freedom of enjoying a longer tenure with lower EMIs

The Balance Transfer feature allows you to transfer your existing home loan availed
from any other bank, to ICICI Bank. This is for you to enjoy long term savings.

With the Balance Transfer feature, you can enjoy up to additional top up loan amount.
This can be up to 100% of the original home loan.

The banks home loan page provides unique online tools like Eligibility calculator
and EMI calculator. With the eligibility calculator you can find the home loan amount
you are eligible to avail for, and the EMI calculator calculates the monthly repayment
amount towards the loan.

Selected customers can enjoy pre-approved home loans.

Up to 30 years of loan tenure available

Enjoy a fixed interest rate for the first 10 years, and thereafter a choice of fixed or
floating interest rates
 20

Frequently Asked Questions (FAQs)

1. I have opted for the floating interest rate option on my ICICI bank home loan. If
there is a change in the rate, will it affect me? If so, then how?

This depends on what your home loan is linked to. If your loan is linked to FRR and PLR
your rate of interest will reduce by 0.05%. This will happen due to the change in the
FRR/PLR on June 26, 2015. Please note that this change will also correspondingly have an
impact upon your EMI or loan tenor.

2. I am a home loan customer with an Initial /Renewable fixed rate of interest.

What happens when the fixed rate tenure expires?

As per the fixed rate home loan, the loan is fixed for a stipulated period of time. The same
would have been intimidated to you in the loan sanction letter. After the fixed rate period is
over, your interest category of the loan would convert to floating rate. The applicable floating
rate is decided based on a certain factor. This is the benchmark rate which is prevailing
during the completion of fixed rate period.

3. Do I have the freedom to choose the category of interest rate (fixed or floating)
on my ICICI bank home loan?

With ICICI bank home loans, borrowers can enjoy fixed interest rate for the first 10 years,
and thereafter avail a choice of fixed or floating interest rates. The rate of interest varies
according to certain factors like the loan amount, category of borrower, period of the loan and
fixed or floating rate of interest.

4. Is there any special concession on the home loan interest rates offered by ICICI
bank, for women borrowers?

Yes, for women borrowers the starting rate of interest from home loan is from 9.40% -
9.65%. The woman borrower needs to be the main applicant of the loan, or a co-owner in the
financed property to avail the following rates of interest-

o The floating rate of interest ranges from 9.40% - 9.65%.

o The fixed rate of interest (for 5 years, 10 years) ranges from 9.60% to 9.95%

o The full tenor fixed interest rate ranges from 9.70% to 10.05%

5. If I want to close my home loan, are there any charges on prepaying the loan?

If the home loan is availed on floating rate of interest, then there are no charges for this. If the
loan has been availed on fixed rate of interest, then you need to pay 2% (plus applicable
taxes) on the outstanding principal.
 21

B) HDFC Bank
HDFC Bank

Introduction:
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of RBIs liberalisation 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 Bank comprises of a dynamic and enthusiastic team determined to accomplish the
vision of becoming a World-class Indian bank. Our business philosophy is based on our four
core values - Customer Focus, Operational Excellence, Product Leadership and

People. We believe that the ultimate identity and success of our bank will reside in the
exceptional quality of our people and their extraordinary efforts. We are committed to hiring,
developing, motivating and retaining the best people in the industry.
 22

History
HDFC BANK LTD 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.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up
a bank in the private sector. The bank was incorporated on 30th August 1994 in the name of
HDFC Bank Limited, with its registered office in Mumbai. It commenced operations as a
Scheduled Commercial Bank on 16th January 1995. The bank has grown consistently and is
now amongst the leading players in the industry .

HDFC is India's 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 In a milestone transaction in the Indian banking industry, Times Bank
was merged with HDFC Bank Ltd., effective February 26, 2000.
 23

Vision Statement

"Become the undisputed market leader in providing housing related finances, to realize the
dream of shelter for all in Sri Lanka"

Mission Statement

To our shareholders, our mission is to optimize returns.

To our customers, our mission is to provide a caring service by anticipating their

requirements and innovatively satisfying them beyond their expectations.

To our staff, our mission is to identify their multi-faceted talents, develop, motivate,
recognize and reward them towards fulfillment of the institutional and national housing
vision.

To the national economy and the industry regulator, we are the key driver and thought leader,
shaping and financing the national housing policy.

To our natural environment, we enforce sustainable practices across all our activities.
 24

SWOT analysis of HDFC

Strengths:
HDFC bank is the second largest private banking sector in India having 2,201
branches and 7,110 ATMs
HDFC bank is located in 1,174 cities in India and has more than 800 locations to
serve customers through Telephone banking
The attrition rate in HDFC is low and it is one of the best places to work in private
banking sector
HDFC has good financial advisors in terms of guiding customers towards right
investments

Weaknesses:
HDFC lacks in aggressive marketing strategies like ICICI
The bank focuses mostly on high end clients
Some of the banks product categories lack in performance and doesnt have reach in
the market

Opportunities:
The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts
HDFC has very good opportunities in abroad
HDFC bank has improved its bad debts portfolio and the recovery of bad debts are
high when compared to government banks

Threats:
RBI has opened up to 74% for foreign banks to invest in Indian market
The non banking financial companies and new age banks are increasing in India
The HDFC is not able to expand its market share as ICICI imposes major threat
 25

Home loan of HDFC Bank

Youre probably eligible for an HDFC Limited Home Loan if you are

At least 21 years old

Less than 60 years old

Salaried with regular income

Earn more than the minimum income required

 26

Your HDFC Limited Home Loan amount eligibility is based on these

factors

EMI limited to about 50%of monthly income

Loan capped @ 90% of property value

EMIs of other loans lower your eligibility

 27

Increase your eligible HDFC Limited Home Loan amount by these steps

Make your spouse a co-applicant, and her income will add to your eligibility

Choose longer tenure loan up to 30 years

Alternatively add your parents

 28

Documentation needed to apply

1. Signed application form with photograph

2. ID and residence proof

3. Processing fee cheque

4. Last 6 months bank statements

5. Documentation for salaried applicants:

o Latest Salary-slip

o Form 16

6. Documentation for self-employed applicants:

o Education qualification certificate & proof of business existence

o Last 3 years Income Tax Returns with computation of Income

o Last 3 years Profit / Loss and Balance Sheet

 29

Documents required for HDFC Home Loans:

In order to avail the HDFC Bank Housing Loan, a prospective borrower must supply the
following documents that confirm his/her identity, address, occupation, salary and other
such vital details. A detailed list of documents are as follows:

Requirement. Requisite Documents.

Voters ID, Aadhaar Card, Passport,

Identity and address proof
Driving Licence, PAN Card.

Last 6 months bank statement with clear

attribution to monthly salary credits, Last
Income proof
3 months salary slips, Latest Form-16 and
IT returns.

Employment contract, Appointment letter

(applies only if the current employment is
less than a year old), Cheque to effect
payment of the processing fee, Passport
sized photographs of applicant and co-
Additional documents applicants (this must be suitably appended
to the application form and said
applicant/co-applicants must sign across
the same), Bank statement for the last 6
months to ascertain payments for other
ongoing loan repayments in this duration.

Copies of buyer agreement or allotment

letter (whatever the case may be),
Documents relating to property
Receipts of payments made to the
developer.
 30

HDFC Limited Home Loan Interest Rates

Updated on 10 Oct 2016

HDFC Limited Home Loan Details

General Customers - 9.45%

Interest Rate
Women Borrowers - 9.40%

Up to 0.50% of the loan amount or

Processing Fees
Rs.11,500 whichever is minimum

Loan Tenure 1 Year to 30 years

Guarantor Requirement No Guarantor Required

Partial PrePayment Charges Nil

Pre-closure Charges Nil

 31

9.4% New HDFC Home Loan Interest Rate:

HDFC Bank offers a very competitive rate of interest on its housing loans. The bank
currently offers a floating rate of interest of 9.45%. The bank offers a discount on home
loan interest rates for women customers. As of now the bank offers a discount of 0.05% at
9.40% on its home loans for women borrowers. It is to be noted that this type of interest
rate tends to vary depending on the market.

The ongoing interest rate for HDFC Bank home loans is:

Customer/loan type Interest rate

Floating rate home loan for women 9.4% to 9.9%

Floating rate home loan for others 9.45% to 9.95%

TruFixed Loan (2-3 year fixed rate) for

9.5% to 10%
women

TruFixed Loan (2-3 year fixed rate) for

9.55% to 10.05%
others

TruFixed Loan (10 year fixed rate) for

9.7% to 10.2%
women

TruFixed Loan (10 year fixed rate) for

9.75% to 10.25%
others

The floating interest rate is reset every year based on the change in the 1-year MCLR.
This could increase or decrease your home loan interest rate every year, depending on
whether the MCLR is higher or lower. Fixed rate home loans can be converted to floating
rates by paying a small conversion fee.
 32

HDFC Housing Loans are offered per the following conditions:

1. For purchase of new homes
2. For purchase of resale homes
3. For constructing new homes and/or purchase of property
4. Transfer of home loan from another lender onto HDFC

Additionally, the bank offers the following types of home loans, based predominantly on the
type of audience targeted:

Home Loan Type Target Audience

Professionals who are self-employed and

Home Loan for Salaried and Self-Employed
salaried, non-professional self-employed people.

For those looking to negotiate better with their

HDFC Pre-Approved Loan Scheme
sellers or mark their own financial credibility.

Non-resident Indians willing to purchase a

HDFC NRI Home Loan
property in India.

For those looking to shift from existing

HDFC Home Loan Transfer exorbitant interest rates and costly EMIs over to
HDFCs advantage in this regard.

Looking to upgrade home/property by making

structural improvements, painting, and
Home Improvement Loan (HIL)
waterproofing, roofing and internal, external
repairs.
 33

Addition of extra rooms to an existing home, or

Home Extension Loan
similar modifications.

For farmers to buy property in residential areas

HDFC Special Home Loan for Agriculturists of villages. No mortgage of agricultural land is
required.

This loan is extended to private sector and

HDFC Rural Housing Finance government employees for properties in rural
residential areas.
 34

Features and Benefits of HDFC Housing Loans:

The following pointers elevate HDFC housing loan to the top of its class:

1. Comprehensive loans for the purchase of flats, apartments, independent house,

housing properties from private developers in suitably approved projects, properties
from public sector development companies like BDA (Bangalore Development
Authority) etc.

2. Competitive, attractive and affordable interest rates.

3. Innovative customized product offerings including home extension loans, home

improvement loans, etc.

4. Customer friendly repayment options including flexible repayment tenure of upto 30

years.

5. Zero hidden charges and complete transparency with regards to the application,
approval and repayment stages.

6. Simplified loan processing with door-step service. Also, legal and technical assistance
available to help you evaluate your requirements better and make the correct choice.

7. Vast network of bank branches and additional resources to ensure country wide
availability and servicing.

8. Special offers for NRI, farmers, agriculturalists, horticulturalists, people employed

with the Indian Army etc.
 35

HDFC Home Loan Eligibility:

Prospective borrowers must satisfy the following criteria to be deemed eligible for
the home loan from HDFC Bank:

1. Housing loans can be applied for individually or jointly with a co-applicant(s).

2. Every proposed owner of the property is counted as a co-applicant. However, all co-
applicants are not deemed as co-owners. Ideally, co-applicants are immediate family
members.

3. HDFC Housing Loans are offered to salaried and Self-Employed individuals. The
proposed borrower must possess all relevant documents to prove this status.

4. HDFC NRI Home Loans, naturally, are offered to certify Non-Resident Indians. It is
imperative that the proposed applicant prove his/her status as an NRI.

5. HDFC Rural Home Loans are offered to farmers, agriculturalists, horticulturalists,

dairy farmers, etc.

HDFC Bank, in its individual capacity, may require additional proof and qualifications to
consider you eligible for a home loan. Kindly consult your nearest HDFC Bank for the
same.
 36

HDFC Home Loan Fee and Charges:

When referring to fees and charges attached to the HDFC Bank Housing Loan, their
decremented magnitude and transparent nature are highly commended by the borrowers
of this enterprising home loan product. Herein, a table of applicable fees and charges
gives you a birds eye view of the overheads attached to your proposed loan,

Item Fees

0.50% of loan amount or Rs.2000

Processing Fee
(whichever is higher) plus taxes.

Loans sanctioned to individuals: -Nil-

For all other loans: No prepayment

charges for any amount upto and equal
to 25% of the initial principal balance
for a given fiscal year.

If amount is in excess of 25%: 2%

prepayment charges + taxes. Herein
Prepayment Charges- Adjustable Rate prepayment is done within 3 years from
Home Loans (ARHL) the loans disbursement date.

Post 3 years: No prepayment charges

when part prepayments are made.
However, if a full prepayment is made,
and the same is done with the help of a
loan from a bank, housing finance
company, NBFC or other financial
institution, then 2% fee + taxes apply.
 37

No prepayment charges apply if said

payment is made from a personal source.
A personal source by definition relates
to money that isnt sourced from a bank,
Prepayment Charges- Fixed Rate Home housing finance company, NBFC or any
Loans (FRHL) other financial institution.

Alternatively, if a non-personal source

(as listed above) is used then 2% of the
outstanding amount that is being
prepaid, alongside taxes will apply.

HDFC Bank Home Loan MCLR:

The Marginal Cost of Funds-based Lending Rate (MCLR) announced by HDFC Bank
with effect from April 1, 2016, are as given in the table below:

Loan Tenor MCLR

Overnight 8.9%

1 month 8.95%

3 months 9.05%

6 months 9.1%

1 year 9.15%

2 year 9.2%

3 year 9.3%

HDFC Bank provides home loans with the 1-year MCLR as the base rate. To this, the
bank adds a business margin to arrive at the actual home loan interest rate.
 38

HDFC Home Loan Repayment:

HDFC Bank offers a number of repayment options that are intended to help the borrower
customize his/her repayments in line with his/her unique conditions. Flexibility is the key
here and the customer is free to choose the option that works best for him/her.
Summarily, the following repayment options are available:

Step Up Repayment Facility (SURF): This repayment scheme is based on the expected
income growth of the borrower. In the initial years, you can pay substantially lower
instalments and still avail a high quantum of loan. Subsequently, the repayment increases
proportionally with the assumed growth in the borrowers income.

Tranche Based EMI: In case you purchase a property that is under construction, you are
required to pay the interest amount for the loan till the final disbursement of loan amount
and then pay the EMIs thereafter. With tranche based EMI, customers can immediately
start on the principal repayment and start paying EMIs on cumulative disbursed amount.

Flexible Loan Instalments Plan (FLIP): FLIP is essentially a customized solution that
is linked to the repayment capacity of the borrower which may change through the loan
tenure. The repayment schedule is configured in such a way that the instalment is higher
during initial years of the term and then decreases proportionally to the income.

Accelerated Repayment Scheme: This is a flexible scheme where you can increase the
EMIs every year, proportional to your income growth which will enable you to repay the
loan much faster.

Telescopic Repayment Option: Telescopic repayment plan will get the borrower a
longer repayment tenure of up to 30 years which means the EMIs will be more affordable
and the loan eligibility will also be enhanced.
 39

FAQs about HDFC Bank Home Loans:

1. How is my home loan eligibility determined by HDFC?
HDFC bases the loan eligibility on the customers repayment capacity which is decided
by several factors like income, age, occupation, co-applicants income, number of
dependents, assets & liabilities and savings history. You can check for your own
eligibility here.

2. Can I structure my home loan as part fixed or part floating?

Yes, HDFC Bank offers you the flexibility to schedule your home loan as part floating or
fixed in line with your own convenience and requirements.

3. What is the processing fee for HDFC Home Loans?

The processing fee is up to 0.50% of the total loan amount or Rs.2,000 whichever is
higher plus taxes as applicable.

4. Am I allowed to prepay my loan? If so, what will be the prepayment penalty?

Yes, you can make prepayments on your HDFC Housing Loan. The penalty charges for
prepayment are listed here.

5. Who can I assign as co-applicant(s) for the home loan?

When you are applying jointly for HDFC bank housing loan, all proposed owners of the
house must be co-applicants. But, all co-applicants need not necessarily be co-owners.
Co-applicants are generally immediate family members.

6. What is a Plot Loan?

The HDFC Plot Loan is a type of home loan that allows borrowers to purchase a plot of
land wherein they can eventually build a house. The advantage with this is that the
borrower can decide upon his/her requirements in terms of the design of the house and
other such requirements. All the essential conditions associated with the standard HDFC
home loan shall apply here as well.

7. What is a Short Term Bridging Loan?

As the name so aptly describes, a Short Term Bridging Loan is a financial bridge that
takes care of your needs before you move into your brand new home, and are still running
through the process of selling your old house. This interim period could result in double
the expenditure and compliance with a whole bunch of legal and personal issues-
necessitating the need for an all-encompassing Short Term Bridging Loan.

8. Why must I move my existing home loan over to HDFC?

Not all home loan products are created equal. For long, it was inferred that signing up
with a particular home loan provider was a commitment that would only end after the
loan has been completely repaid. Also, this meant that the lenders high interest rates had
 40

to be complied with, and that better loan options from other lenders that emerged at a
later date were to be seen as missed opportunities. Not anymore!!
The following are express reasons why you must move your existing home loan over to
HDFC:
o Simple transfer procedure, followed by a chance to gain an additional top-up
loan of Rs.35 lakhs.
o Attractive and best in class interest rates that help you save money.
o A bunch of customized repayment options to help you pay off the loan amount
easily.
o Absolutely 0% hidden charges.
o An exhaustive network of HDFC Bank branches across India wherein your
loan request can be effectively and quickly serviced.
9. What are the essential things to remember when applying for the HDFC Home
Loan online?
Online activity, be it simple net surfing or purchasing products/services through shopping
portals, must always be cautiously undertaken. When applying for the HDFC housing
loan online, ensure that you pay attention to the following:
Legitimate Source: Online phishing scams are as common as cucumbers in a vegetable
salad. Trusted websites like BankBazaar.com offer you the genuinely and security that
will help you be confident when sharing your personal and financial information online,
in the pursuit of your own HDFC Home Loan.
Keep Your Information Handy: All the vital details that form the crux of a KYC cycle
must be kept handy. This will save you the trouble that is usually associated with the
supply of wrong information.
Seek Help When Needed: When applying for the HDFC Housing Loan online, there will
be occasions when concerns and queries will crop up. In such scenarios, dive down to the
expert BankBazaar customer support option and get your queries resolved.

10. What purpose do HDFC Home Improvement Loans serve?

As the name clearly mentions, a home improvement loan helps you improve the aesthetic
and functional qualities of your home. The HDFC Home Improvement Loan can be used
for such varied purposes as painting the house, tiling and flooring, plastering,
construction of a sturdy fence or border, etc. The borrower must however sufficiently
prove that the disbursed loan will be used for the exact purpose for which it is intended.
 41

C) COMPARISION OF BANKS ICICI V/s HDFC

COMPARITIVE STATEMENT OF HOME LOAN

Others

Bank Name HDFC ICICI

Interest Rate Range 9.45% 9.45%-9.70%
Processing Fee Range 0% to 0.5%(max.11500) 0.5%(min.11500)
Loan Amount 5L-10cr 5L-10cr
Tenure Range 1-30 Years 3-30 Years

Womens Special

Bank Name HDFC ICICI

Interest Rate Range 9.40% 9.40%-9.65%
Processing Fee Range 0% to 0.5%(max.11500) 0.5%(min.11500)
Loan Amount 5L-10cr 5L-10cr
Tenure Range 1-30 Years 3-30 Years

Home Loan Floating

Others
HDFC ICICI

Upto Rs. 2,500,000 - 9.45% Upto Rs. 2,500,000 - 9.35%

Rs. 2,500,001 - 7,500,000 - 9.45% Rs. 2,500,001 - 7,500,000 - 9.35%
Rs. 7,500,001 - 20,000,000 - 9.45% Rs. 7,500,001 - 50,000,000 - 9.35%
Above Rs. 20,000,000 - 9.45% linked to PLR Above Rs. 50,000,000 - 9.6% linked to 1
Year MCLR

Special offer for female borrower
HDFC
Upto Rs. 2,500,000 - 9.4%
Above Rs. 2,500,001 - 7,500,000 - 9.4%
Above Rs. 7,500,001 - 20,000,000 - 9.4%
Above Rs. 20,000,000 - 9.4% linked to PLR
Fixed Interest Rate
Others
HDFC Home Loan TruFixed
Upto Rs. 2,500,000 - 9.55%
Rs. 2,500,001 - 7,500,000 - 9.55%
Rs. 7,500,001 - 20,000,000 - 9.55%
Above Rs. 20,000,000 - 9.55% linked to PLR
Special offer for female borrower
HDFC
Upto Rs. 0 - 9.4%
Above Rs. 1 - 7,500,000 - 9.5%
Above Rs. 7,500,001 - 20,000,000 - 9.5%
Above Rs. 20,000,000 - 9.5% linked to PLR
42
ICICI
Upto Rs. 2,500,000 - 9.3%
Above Rs. 2,500,001 - 7,500,000 - 9.3%
Above Rs. 7,500,001 - 50,000,000 - 9.3%
Above Rs. 50,000,000 - 9.55% linked to 1
Year MCLR
ICICI Home Loan Fixed
Upto Rs. 3,000,000 - 9.35%
Rs. 3,000,001 - 15,000,000 - 9.35%
Rs. 15,000,001 - 50,000,000 - 9.35%
Above Rs. 50,000,000 - 9.6% linked to 1
Year MCLR
ICICI
Upto Rs. 2,500,000 - 9.3%
Above Rs. 2,500,001 - 7,500,000 - 9.3%
Above Rs. 7,500,001 - 50,000,000 - 9.3%
Above Rs. 50,000,000 - 9.55% linked to 1
Year MCLR
 43

Others Details
HDFC ICICI

PROCESSING FEE 0% to 0.5% 0.5%

PENALTY

TENURE 1-30 Years 3-30 Years

MINIMUM AGE 21 21

MAXIMUM AGE 60 65

Avg. APPROVAL TIME 4.2 days Same day

 44

Chapter: 4
Analysis and Interpretation
1) Age Group:

Age group No. of Respondents Percentage

21-30 17 34.00%
30-40 13 26.00%
40-50 11 22.00%
50-65 9 18.00%

Age Group
21-30 30-40 40-50 50-65

18%
34%

22%

26%

Result:

From The Chart above we find that 34% of the respondents fall in the age of 21-30 yrs, 26%
fall in the age group of 30-40 yrs and 22% fall in the age of 40-50 yrs, and 18% fall in the age
of 50-65 yrs.

Therefore most of the respondents are young as compared to others age group.
 45

2) Occupation:
Occupation No. of Respondent Percentage
Professional 16 32.00%
Self-employed 15 30.00%
Salaried 12 24.00%
Others 7 14.00%

Professional Self-employed Salaried Others

14%

32%

24%

30%

Interpretation:
From the table and pie above it can be seen that:

24% of the salaried and 32% are working Professional and 30% fall in the group of Self-
employed, and 14% fall in the group of others.
 46

3) Have you ever taken Home loan before?

No. of Respondent Percentage

yes 34 68.00%
no 16 32.00%

yes no

32%

68%

Interpretation:
From the table and pie above it can be seen that

32% falls in the group of NO

68% falls in the group of Yes

 47

4) If yes, from which Bank/company

Category No of respondents Percentage

HDFC 13 38.24%
ICICI 11 32.35%
Others 10 29.41%

No of respondents
HDFC ICICI Others

30%
38%

32%

Interpretation:
The data shows 30% of customers took loan from Others Bank. And 32% Customer took loan
from ICICI bank. The 38% customers took loan from HDFC Bank as compared others and
ICICI Bank.

Analysis showed that large number of customer prefer HDFC banks for Home loan.
 48

5) Which Bank provides best service?

Category No of respondents Percentage

HDFC 15 44.12%
ICICI 11 32.35%
Others 8 23.53%

No of respondents
HDFC ICICI Others

24%
44%

32%

Interpretation:
a) HDFC fall in the group of 44%

b) ICICI fall in the group of 32%

c) Others fall in the group of 24%

As the result mostly customer prefer to HDFC for best Service.

 49

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

Category No of respondents Percentage

Interest rates 17 50.00%
Service Provided 7 20.59%
Payback period 10 29.41%
Schemes 0 0.00%

No of respondents
Interest rates Service Provided Payback period Schemes

0%

29%

50%

21%

Interpretation:
From the table and pie above it can be seen that:

While taking loan the large number of customers fall in the group of interest rate and around
percentage is 50% as compared to others group. 21% customers fall in the group of Service
provided and 0% fall in the scheme, and 29% fall in the group of Payback Period.
 50

7) If the Interest rate is high for the Home loans, you will go for it?
Category Percentage No of respondents
Yes 0.00% 0
No 100.00% 50

Percentage
150.00%

100.00%

Percentage
50.00%

0.00%
Yes No

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

100% falls in the group of NO

0% falls in the group of Yes
 51

8) How much loan amount you took?

No of
Category respondents Percentage
Less than 1 lakhs 0 0.00%
1-5 lakhs 3 8.82%
5-10 lakhs 8 23.53%
more than 10 lakhs 23 67.65%

Loan Amt
Less than 1 lakhs 1-5 lakhs 5-10 lakhs more than 10 lakhs

0%

9%

23%

68%

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

a) 0% falls in the group of less than 1 Lakhs

b) 9% fall in the group of 1-5 lakh

c) 23% fall in the group of 5-10

d) 68% fall in the group of more than 10 lakh

As per Result the large number of customers took loan more than 10 lakhs as compared to
others.
 52

9) What is reason for getting it financed?

Category No of respondents percentage

Non availability of funds 17 50.00%
Tax benefit 6 17.65%
Reluctance to pay cash in on go 10 29.41%
Any other 1 2.94%

Gitting It Financed
Non availability of funds Tax benefit Reluctance to pay cash in on go Any other
3%

29%
50%

18%

Interpretation:

The data shows 50% of customers find the problem in Non availability of funds.
18%customers fall in the group of Tax benefit, and 29% fall in the group of Reluctance to
pay cash in on go and 3% fall in the Any Others
 53

10) From where have you got information about home loans scheme?

Category No of respondents Percentage

Newspapers 9 26.47%
Magazines 0 0.00%
Hoarding/banners 17 50.00%
Word of mouth 4 11.76%
any other 4 11.76%

Newspapers Magazines Hoarding/banners Word of mouth any other

12%
26%
12%
0%

50%

Interpretation: The data shows that around 12% of customer got information from source
of " Word of mouth " which includes information from friends, relatives, colleagues etc. 26%
of customers got information from newspapers, only 0% of customers from magazines and
12% of customers got information about home loans schemes under" any others" and 50 %
through Banners/Hoardings/Pamphlets.
 54

11) What problems did you face while getting home loans?

Category No of respondents Percentage

Lack of knowledge 16 47.06%
Procedural delays and non cooperation 14 41.18%
Any other 4 11.76%

Lack of knowledge Procedural delays and non cooperation Any other

12%

47%

41%

Interpretation: The data shows that around 12% fall in the group of Any Others and
41% customers or people fall in the group of Procedural delays and non cooperation and
another problem is most customers facing lack of knowledge and 47% fall in the group of
lack of knowledge

As the per the chart and table the large number of customers facing lack of knowledge .
 55

Chapter: 5
FINDING
HDFC LTD providing good services to their customers.

Most of the people are directly go to HDFC to apply a home loan.

Some of the customers felt that the interest rates are somewhat high.

HDFC and ICICI providing same processing fees.

Customer support of ICICI section is not performing well in terms of resolving

complaints

There are lot of consumer complaints filed against ICICI

The large number customers are young as compared to others

Mostly customers facing lack of knowledge while taking loan

The data shows that around 12% of customer got information from source of " Word
of mouth " which includes information from friends, relatives, colleagues etc. 26% of
customers got information from newspapers, only 0% of customers from magazines
and 12% of customers got information about home loans schemes under" any others"
and 50 % through Banners/Hoardings/Pamphlets.

The data shows 50% of customers find the problem in Non availability of funds.
18%customers fall in the group of Tax benefit, and 29% fall in the group of
Reluctance to pay cash in on go and 3% fall in the Any Others

While taking loan the large number of customers fall in the group of interest rate and
around percentage is 64% as compared to others. 22% customers fall in the group of
Service provided and 2% fall in the scheme, and 12% fall in the group of
Payback Period.
 56

Chapter: 6
RECOMMENDATION
The maximum age for repayment could be increase to 65-70 years of age. Such
facility will grow fast retail segment of the bank.

Although the interest rates on specific norms, yet customers seek less interstate which
can lower their cost of house. So banks should try to lower their interest
rates. Needles to say, that the bank which is having lower interest rates, have the
maximum clients for loans.

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

Website of HDFC should give more options and features to customers so that they get
maximum information sitting at home.

Company should consider the present competition and should act according to the
customer needs.

The Both Company should try to provide proper knowledge regarding their home loan
schemes, even to people who don't know about such schemes and their benefits
especially in rural areas. So they should provide knowledge to the ignorant customers,
especially in rural areas and backward urban area.

They should improve their services and reduce legal proceedings and should be
friendly to their customers. All this will be helpful to satisfy their customers
 57

Conclusion

The Indian customer has come a long way from purchasing to fulfilling their needs
from buying a house customers now grab everything that comes their own survey of
optimum loans; same is the case with banks and housing loans

With innumerable choices before him, the customer is needed then king.

It is therefore imperative that if the bank has to succeed in competitive world, it

should be technological starry.

Customer centric progressive driven by highest standard of cooperative governance

and guided by sound ethical values and above all should have personalized customer
services.

There is scope of exploiting the vast middle income group by releasing loans with
special interest rate, which would be beneficial to both parties.
 58

Chapter: 7
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http://www.deal4loans.com/loans/home-loan/best-home-loan-bank-housing-loan-banks/

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http://www.investorwords.com/8613/home_loan.html

http://economictimes.indiatimes.com/definition/home-loan

http://study.com/academy/lesson/what-is-a-loan-definition-types-advantages-
disadvantages.html#lesson

http://www.marketing91.com/swot-analysis-hdfc/

http://www.marketing91.com/swot-analysis-icici-bank/
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ANNEXURE
ICICI: Industrial Credit and Investment Corporation of India.

Housing Development Finance Corporation (HDFC)

Equated monthly installment (EMI)

Identity Document (ID)

Reserve Bank of India (RBI)

Non-Resident of India (NRI)

BDA (Bangalore Development Authority)

Fixed Rate Home Loans (FRHL)

Adjustable Rate Home Loans (ARHL)

The Marginal Cost of Funds-based Lending Rate (MCLR)

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Questionnaire
Dear Sir/Madam

I m preparing a project on HOME LOAN ON HDFC AND ICICI Banks. For this I have
designed a Questionnaire to know your views and satisfaction level of home loans.

1. Name: _____________________________________________________________

2. Age: (a) Below 30 (b) 30-40 (c) 40-50 (d) Above 50

3. Occupation: (a) Professional (b) Self-employed (c) Salaried (e) Others

4. Have you ever taken Home loan before?

(a) Yes (b) No

5. If yes, from which Bank/company?

(a) ICICI (b) HDFC (c) Others

6. Which Bank provides best service?

(a)HDFC (b) ICICI (c) Others

7. While taking loan, which things attract you the most?

(a) Interest rates (b) Service Provided (c) Payback period (d) Schemes

8. If the Interest rate is high for the Home loans, you will go for it?

(a) Yes (b) No

9. How much loan amount you took?

(a) Less than 1 lakhs (b) 1-5 lakhs(c) 5-10 lakhs (d) more than 10 lakhs

10. What is reason for getting it financed?

(a) Non availability of funds [ ] (b) Reluctance to pay cash in on go [ ]

(c) Tax benefit [ ] 4. Any other (please specify) _______________________________

11. From where have you got information about home loans
scheme?(Check list).. Newspapers [ ] Magazines [ ] Hoarding/banners [
] Word of mouth [ ] any other (please specify) _______________________________

12. What problems did you face while getting home loans?

a. Lack of knowledge b. Procedural delays and non cooperation

c. Any other (please specify) _______________________________________________