“STUDY OF THE PROCEDURE OF DISBURSEMET OF HOME LOAN OF

HDFC BANK IN BAREILLY CITY”

Lal Bahadur Shastri College of Higher Education

(Affiliated To Mahatma Jyotiba Phule Rohilkhand University)
For The Partial Fulfilment of Bachelor of Commerce with Honours

Submitted to: Submitted by:

Mr. Vivek Gupta Tanya Sigh

Asst. Prof. B.com (H)

LBSCHE, BAREILLY 2nd YEAR

 PREFACE

The success of any business entity solely depends on how effectively does it utilizes its optimum
resources. This project has given a chance to try and apply the academic knowledge and gain insight
into corporate culture this helps in developing decision making abilities and emphasis on active
participation by the student. The topic given to me was: “Study of the procedure of Disbursement of
Home Loan of HDFC Bank in Bareilly city” I have tried to put my best efforts to complete this task
on the basis of skill that I have achieved during my studies in the institute. I have tried to put my
maximum effort to get the accurate statistical data- If there is any error or any mistake in collecting
the data, please correct it in the best way as I am still learning.
 STUDENT DECLARATION

I, Tanya Singh, student of Lal Bahadur Shastri College of Higher Education pursuing B.com(H)
part- II, hereby declare that I have completed this project on “Study of the Procedure of
Disbursement of Home Loan of HDFC Bank in Bareilly City” in the academic year 2019-2020. The
information submitted is true and original to the best of my knowledge.
 ACKNOWLEDGEMET

A successful project can never be prepared by the single effort or the person to whom project is
assigned , but it also demand the help and guardianship of some conversant person who helps in the
undersigned actively or passively in the completion of successful project. With great pleasure I
express my gratitude to our director Prof. Rajendra Bharti and project guide Mr. Vivek Gupta
without their help this would not have been completed. They have given their precious suggestions
and constructive guidance which have been indispensable in the completion of this project work. I
would also like to thank all my faculty members & college staff to help me in completion of this
project. They have supported me in this endeavour, and appreciated me in my efforts during my
project. Last but not the least I would also like to thank my friends and all the responded. Who
directly and indirectly supported me during my project work, without the help of whom this project
would not have been possible.

Tanya Singh
 TABLE OF CONTENT

Sr. no. Title Page no.

1 Industrial profile
2 Organizational profile
3 Introduction
4 Objective of study
5 Scope of the study
6 Advantages & Disadvantages of Home
Loans
7 Home Loan scheme and its Extensions
8 Eligibility Criteria of Home Loans
9 Documents involved in evaluation of
Home loans
10 The loan procedure followed at HDFC
11 Scrutiny of the Documents
12 The Future of Home Loans
13 Findings
14 Conclusion
15 Limitations of the study
16 Suggestions and Recommendations
17 Biblography
 INDIAN BANKING INDUSTRY PROFILE:
The banking scenario in India has been changing at fast pace from being just the borrowers and
lenders traditionally, the focus has shifted to more differentiated and customized product/service
provider from regulation to liberalization in the year 1991, from planned economy to market.

Economy, from licensing to integration with Global Economics, the changes have been swift. All
most all the sector operating in the economy was affected and banking sector is no exception to this.
Thus the whole of the banking system in the country has undergone a radical change. Let us see how
banking has evolved in the past 57 years of independence.

After independence in 1947 and proclamation in 1950 the country set about drawing its road map
for the future public ownership of banks was seen inevitable and SBI was created in 1955 to
spearhead the expansion of banking into rural India and speed up the process of magnetization.

Political compulsion’s brought about nationalization of bank in 1969 and lobbying by bank
employees and their unions added to the list of nationalized banks a few years later.

Slowly the unions grew in strength, while bank management stagnated. The casualty was to the
customer service declined, complaints increased and bank management was unable to item the rot.

In the meantime, technology was becoming a global phenomenon lacking a vision of the future and
the banks erred badly in opposing the technology up gradation of banks. They mistakenly believed
the technology would lead to retrenchment and eventually the marginalization of unions.

The problem faced by the banking industry soon surfaced in their balance sheets. But the prevailing
accounting practices unable banks to dodge the issue.

The rules of the game under which banks operated changed in 1993. Norms or income Recognition,
Assets classification and loan loss provisioning were put in place and capital adequacy ratio become
mandatory. The cumulative impact of all these changes has been on the concept of state ownership
in banks. It is increasingly becoming clear that the state ownership in bank is no longer sustainable.

The amendment of banking regulation act in 1993 saw the entry of new private sector banks and
foreign banks.
 MAJOR PLAYERS IN INDIA

 HDFC Bank

 State bank of India

 ICICI Bank ltd.

 Axis Bank

 Kotak Mahindra Bank

 Indusind Bank

 Bank of Baroda

 Yes Bank

 Punjab national Bank

 Canara Bank
 PROFILE OF HDFC BANK

About HDFC BANK

HDFC Bank was incorporated in August 1994, and, currently has an

nationwide network of 2,544 Branches and 9,709 ATM's in
1,399 Indian towns and cities.
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 the RBI's 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 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.
 INTRODUCTION
Home is a dream of a person that shows the quantity of efforts, sacrifices
luxuries and above all gathering funds little by little to afford one’s dream.
Home is one of the things that everyone one wants to own. Home
is a shelter to person where he rests and feel comfortable. Many
banks providing home loans whether commercial banks or financial
institutions to the people who want to have a home .HDFC-(Housing
Development And Finance Corporation) Home Loan, India have
b e e n s e r v i n g t h e p e o p l e f o r a r o u n d t h re e d e c a d e s a n d
p r o v i d i n g v a r i o u s h o u s i n g l o a n according to their varied needs at
attractive & reasonable interest rates. Owing to their wide
network of financing, HDFC Housing Loans provides services at
your doorstep and helps you find a home as per your requirements .Many
banks are providing home loans at cheapest rate to attract consumers
towards them. The more customer friendly attitude of these banks,
currently offer to consumers cheapest loan over homes. In view of
acute housing shortage in the country, and keeping in mind the
social – e c o n o m i c r o l e o f c o m m e r c i a l b a n k s i n t h e p r e s e n t
t i m e s , t h e R B I a d v i s e d b a n k s t o encourage the flow of credit for
housing finance. With the RBI reducing bank rate, the home loan
market rates nose-diving by 50 basis points. The HDFC Bank
and Standard chartered bank has become the first player in this
sector to announce a housing loan for a 20 years period. No doubt
it will enhance the end cost people to plan their house over longer
duration now; it has been made easy for a person to buy that dream
house which he dreamt of long ago. H D F C a l s o p r o v i d e s w i t h H o m e
I m p r o v e m e n t L o a n f o r i n t e r n a l a n d e x t e r n a l repairs and other
structural improvements like painting, waterproofing, plumbing
and electric works, tiling and flooring, grills and aluminium
windows. HDFC finances up to85% of the cost of renovation (100% for
existing customers).Current status is that HDFC reduced home loan
rates by 50 basis points for all its existing floating rate customers.
Need for the study:
Retail banking has been popular segment to enter into for many banks. In the retail
banking, housing sector has been most promising segment which is promising a
Comprehensive growth rate of about 30 per cent for the next five years. With the
government keen on infrastructure development and announcing various tax Sops
housing loan segment has been a tempted area for many banks to enter into housing
sector can be bifurcated into organized and unorganized segments with the
unorganized segments accounting for over 75 per cent of the housing units
constructed.

During the past 4 – 5 years the housing sector helped by the growing housing finance
industry has witnessed significant developments.

Housing Finance Evaluation:

Housing Development Finance Corporation (HDFC) was the first housing finance
Company to setup operations in India in 1977. After the National Housing Bank Act,
1987, was passed NHB came into existence as a Subsidiary of the Reserve Bank of
India (RBI) to regulate housing finance companies and provide them with refinancing
to supplement their fund requirements.

Public sector banks were allowed to provide housing loans directly to retail clients
only in 1988.
 OBJECTIVES OF THE STUDY OF HOME LOANS

 To study and understand the concept of home loan scheme and the eligibility
criteria of the customers.

 To study and understand the documents involved in the home loan scheme and
the repayment methodology adopted by HDFC BANK
 SCOPE OF THE STUDY

 Company has undergone rapid changes in the past 5 years due to many policy
decisions relating to capital markets, banking sector & licensing policy.
 The study is limited to only HDFC Bank This study is mainly related to the
individuals who are interested in taking home loans from banks to fulfill their
dreams.
 The study is mainly related to all the loans provided by HDFC bank only.
Advantages of home loans

 Attractive interest rates

 Helping in owning a home
 Less documents required
 Door step service
 Loan period

Disadvantages of home loans

 Fluctuating interest rates
 Delay in processing file
 HOME LOAN SCHEME AND ITS EXTENSIONS

A home loan scheme is generally offered to the person to accommodate finance for
purchasing the house or for renovation or extension of the existing house.
The various extensive schemes, which are included in the home loan portfolio, are:

Home Purchase Loan:

This is the basic home loan for the purchase of a new home.
Home Improvement Loans:
These loans are given for implementing repair works and renovations in a home that
has already been purchased by you.
Home Construction Loan:
This loan is available for the construction of a new home.
Home Extension Loan:
This is given for expanding or extending an existing home.
For eg: addition of an extra room etc.
Home Conversion Loan:
This is available for those who have financed the present home with a home loan and
wish to purchase and move to another home for with some extra funds are required.
Through home conversion loan, the existing loan is transferred to the new home
including the extra amount required, eliminating the need of pre-payment of the
previous loan.

HDFC offers:

 Attractive loan interest rates.

 Home Loan amounts starting from Rs.2 lacks and ends up to 20lakhs.
 Tern loans up to 20 years.
 Free personal Accident Insurance (Terms & Conditions).
 Insurance options for your home loan at attractive premium.
 Special 100% funding for select properties.





ELIGIBILITY CRITERIA FOR HOME LOANS

How much an applicant can borrow?

Home Loans range from Rs.1lakh to Rs. 50lakhs. Your repayment period can vary
from 1 year to 20 years depending upon your capacity to repay.

Eligibility:
Age: - Min: You should be at least 21 years of age.
Max: At the time of loan maturity, you should not exceed 65 years or your
retirement age, whichever is earlier.
Individuals:
You should have completed a minimum of 2 years of service (with a minimum of 1
year in the current job)

Businesspersons/Self-employed professionals:
You must have an established business or professional practice of not less than 3
years, with a positive net worth and must have posted a net profit for the last 2 years.
Note: Minimum net take home salary of Rs. 6000/- p.m. for salaried employees or
annual income of not less than Rs. 1.20lakh for businesspersons/ self-employed
professionals. (Spouse/co-applicant’s income can be included in the income
computation).

1. Individuals who are salaried or self employed, professionals, businessmen are

eligible. Proprietary concerns, HUF, partnership firms or limited companies are not
eligible for this loan, where partners at their individual capacity are free to avail this
loan.

2. As a customer to enhance the loan eligibility, all HFIs lay down conditions to who
be co applicants, al co owners to the property should necessarily be co-applicant.
Income of the co owners can be clubbed together to get higher loan eligibility. Minors
are not eligible to become co owners, as also friend and relative’s only blood relatives
are eligible to take a property jointly.
Some of the acceptable relationships where loan clubbing is possible:
Income clubbing of co – applicants

Combinations Income clubbing

Husband – wife YES
parent – Son YES (if only son)
Parent – Daughter YES (If only child)
Brother- Brother YES (if currently staying together and
intend staying together in the new
property)
Brother – Sister NO
Sister – Sister NO
Parent – Minor child Not eligible for loan

3. The minimum age for the applicant and the co applicant to become eligible for
the commencement oft eh loan is 23 years, and co applicant can be of 18 years of
age if their income is not clubbed to calculate the loan eligibility.
4. The maximum age at the time of loan maturity for applicant or co-applicant is
60 years or the retirement age whichever is earlier.
DOCUMENTS INVOLVED IN EVALUATION OF
HOME LOAN:

The documentation requirement for various categories of applicants depends on their

status. For this purpose all HFIs segregate their employees in different categories.
They are:

 Salaried
 Professional or Businessman
The criteria of evaluation changes according to their status. The general documents,
which remain same for all the categories, are as follows:
1. Proof of age
Any one of the following is considered for proof of age, they are:
 Passport
 Voter’s ID card
PAN card
 Ration card
 Employer’s identity card
 School leaving Certificate
 Birth Certificate

2. Copy of bank statements for the last six months:

Bank statement for the last six months of all operating and salary accounts.
Bank statements for the last six months of all current accounts, if self
employed. Any other photocopies of investments held, if required by the HFIs
3. Copy of latest credit card statement.
4. Passport size photograph
5. Signature verification by your bankers.
6. Proof of residence:
 Ration Card
 PAN Card
 Passport
  Rent agreement if any, if you are currently staying on rent.
 Allotment letter from your company if you are residing in company
Quarters.

The documents required to be provided by the salaried class are as follows:

 Salary slips for the last one month.
 Appointment letter
 Salary certificate
 Retainer ship agreement, if appointed as consultant.
 From-16 issued by the employer in your name.

Proof of Employment:
The proof of employment is verified by the
y

 Identity card issued by the employer

 Visiting card.

Employer’s details (in case of private limited companies):

The employer’s details are to be provided in addition to the above documents
for documents for a private sector employee, they are:
 Name of promoters / Directors
 Background of promoters / Directors
 Number of employees
 List of branches / factories
 List of clients / Customers
 Turnover of your employer
 Annual reports of your employer for the last two to three years
THE LOAN PROCEDURE FOLLOWED AT HDFC BANK

The procedures involve in the disbursement of home loan by any bank entails the
following steps:

 Home loan application form is first submitted by the customer

covering all details.

 Checklist of requirements is requested for from the customer, and all

documents are required to be submitted (copies), they are then verified
whether the details are failed in correctly and whether all the
documents are submitted.

 Additional loans, if any are applicable. Many banks provide for

supplementary loan as a part of their comprehensive home loan
scheme.

The following diagram indicates the loan procedure at the

Customer

Branch manager

Legal opinion, valuation

Loan Department And Technical

Branch manager

For large borrows

bank
Regional Officer
RISK CAPTURING MECHANISM

One of the important aspects in the home loan financing is to ensure that the loan
seeker is worthy and credible. HDFC follows the credit score model to male home
loan disbursements.
Credit score model is a risk capturing mechanism, which is used to assess the risk
perspective of the loan seekers.
The prospective loan seeker is assessed on a number of parameters which helps in the
evaluation of his profile and each parameter is assigned a score based on which the
decision is taken.
A score of 100 is fixed, and a score of 75 is considered to be good, score of 55 is
considered above average and score of 25 to be average. The prospective loan seeker
on a scale of 100 is expected to get 55 avail the home loan.

The parameters on which risk is assessed are:

1. DEMOGRAPHIC PROFILE

The demographic profile includes a number of sub-parameters they are basically:

 Age
 Educational Qualifications
 Number of Dependents
 Marital status
The demographic profile of the loan seeker is allotted a maximum score of 15.

2. RELATIONSHIP WITH HDFC BANK

The relationship with the bank is also considered for the benefit of its customers.
The sub-parameters considered here are:
 Value of relationship (in terms of deposits)
  Number of years
The relationship with the bank is given a weight of 10 on the total score of 100.

3. INCOME MODEL
The income module of the bank includes parameters such as:
 Gross Eligible Monthly Income
 IRR ( Income to Installment Ratio)
 FOIR (Fixed obligations to income ratio)
 Net take home
The income model is given the highest score of 50 points.

4. STABILITY AND CONTINUITY

The stability and continuity factors are based on
 Organization Profile : Govt. / public sector companies / public limited or
private limited companies or partnership or others
 Length of service in Present job / organization.
This module is provided with maximum score of about 15 points.

5. ASSET MODULE
The asset module include factors like
 Margin
 Net-Worth ( Total assets – Total Liabilities)
The asset module is given a weight of 10 on a scale of 100.

The various parameters of the credit score model and their respective weights
are depicted in the following chart.

The abbreviations of the above term are:

DM – Demographic profile
RHDFC – Relationship with the HDFC
IM – Income Module
SC – Stability and Continuity
SCRUTINY OF THE DOCUMENTS

The retail processing is a procedure, which involves careful scrutiny of accounts.

HDFC Bank uses a specialized system to go through the accounts, before dispersing
the loan to the customer. The basic groups set up in the process of loan application
are:

RETAIL MANAGER ENTERER GROUP:

This group does the data entry. Upon completion of the data entry the group forwards
the same to the RM Verifier group to verify and resends it to the former in case of tiny
discrepancies for editing.

The Loan officer enterer group and the RM Verifier group should ensure, confirm and
verify the following:
The organization is in the appropriate list.
The organization is not in the negative list
 The property location is not in the negative list.

Applicant Details:
 Name and the personal details
 Identity details Address
 Employment details – salaried
 Financial details: Income asset ownership, Existing bank account details and
credit card details
 Employment details: Business
 Financial details: Existing bank accounts and credit card details.
Existing Loan details:
The name of the financial institution (in case of take over) type of loan,
purpose of loan amount etc, as per the home loan application form.

Loan request:
Including the disbursement details.

Acquisition details:
Gee details, loan amount recommended, name of the customer preferred branch.

Reference details:
Entry of at least one reference is mandatory.

Property details:
The RM enterer group and the RM Verifier group shall affix their initials on
the home loan process note.

Upon completion of the above activities, the field investigation, legal opinion and the
technical appraisal process shall be initiated by the RM.

The basic scrutiny checks followed by the bank:

 Field investigation study.
 Technical Feasibility
 Legal Feasibility

Field Investigation Study:

The manager RM shall go through the documents and inform the same to the
field investigation agency the details:
a) Field Investigation Report:
 Residence and Reference (Tele – Check)
 Name, Address, Office or Business telephone number of the
applicant and
 Co-applicant.
  Income Tax return.

The reports are to given on the letterhead of the respective approved agency by their
authorized employee with agency’s rubber stamp. The RM should ensure from the
field investigation agency in case of Residence and reference (Tele-check)
The details in the report should match with the information given in the home loan
application form.

IT-Return:
It should be tallied as per the office records.
The manager RM shall make a tele-check to cross verify the investigation made by
the agency in case, for the salaried applicants where the disbursement is greater than
10 lacks and in case of the businessman where the disbursement is greater than 10
lacks.

2. LEGAL FEASIBILITY

The bank should arrange for the legal opinion.

The manager RM should forward it to the bank’s empanelled lawyer various

documents for scrutiny.
Some of the documents required for the scrutiny by the lawyer are:

 Sale agreement duly registered

 Own contribution receipts
 Allotment letter
 Land documents indicating ownership, if applicable registration receipt
 Possession letter
 Lease agreement, if applicable (Property bought from a development
authority)
 No objection certificate from the developer, society or development authority.
 In case of the construction of the house the agreement of construction of the
house between the land owner and the contractor.
The above are the list of documents to be referred to by a lawyer. The manger has to
provide the copies of the documents should be provided by duly specifying the name
of the applicant, particulars of property and list of documents attached.

All correspondence with regard to the legal opinion must be carried forward between
the lawyer and the RM only.

3. FINANCIAL SCRUTINY

Prior to disbursement, the HFI also conducts a site visit to the customer’s property to
ensure the following:
In case of under construction property:

 Stage of construction is the same as that mentioned in the payment notice

given to the builder.
 Quality of construction
 Satisfactory progress of work.
 Lay out of the flats and area of property is within the permission granted by
the governing authority
 Requisite certificate have been received by the builder to start the construction
at the site.

In case of ready / Resale construction:

 External maintenance of the property.

 Internal maintenance of the property.
 Age of the building
 Whether the building will last the tenure of the loan
 Quality of construction
  There is no existing lien or mortgage on the property

The list of valuation engineers empanelled by the bank need to take up these various
documents and ensure that the report is furnished in the prescribed format and that
loan amount requested by the applicant is sufficient to complete the project. The
details in the property report given by the technical term and compare it with the legal
opinion and application and ensure that there are no discrepancies. After completion
of the above checks and scrutiny the manager RM must forward the home loan
process not along with the home loan application and other enclosures Legal opinion,
technical appraisal report, for further processing to the Loan Manager term, after
retaining in the customer’s file, copy of the following papers:
 Home loan application
 Legal opinion with all enclosures
 Technical appraisal report
Loan Department has to send the documents and papers to the RM for further scrutiny
and processing of the proposals. This would increase the turnaround time, of
processing and also additional charge towards the courier charges and also losing the
documents in transit, In order to avoid the above discrepancies the documents are
verified by the document imaging system.

Newgen document imaging system is introduced to facilitate electronic transmission

of documents for processing of proposals by RM.

 It facilitates scanning and maintenance of scanned images.

 It also provides the provision of linking the documents if the same document
is required for multiple loans
 Provisions to make remarks, on the document without disturbing the original.
 Scanned images can be attached to any mail

This facilitates easy transmission of data and other documents and also provides the
flexibility in loan processing and helps in fast transmission of data, these all
advantages helps in easy disbursement of loans.
HDFC Bank Home Loan Interest Rate

HDFC Home Loan Floating Interest Rate

a. Up to 30 lacs - 10.50 %
b. 30 to 75 lacs - 10.75 %
c. above 75 lacs - 11 %

HDFC Home Loan Fixed Interest Rate

a.Up to 30 lacs - 12.25 %
b. 30 to 75 lacs - 12.50 %
c. above 75 lacs - 12.75 %

HOME LOAN FACILITIES WITH VARIOUS ADD-ON BENEFITS

The banks have buckled for the completion of the home loan products by providing
various add-on benefits, which has also become a key factor in the competitive era of
home loans.
The banks have also tied up with various property insurance companies in order to
make their home loan competitive.
The ABN-AMRO bank which has entered the home loan segment in October 2003,
launched its product “All Smiles Home Loans” with the lowest interest rate of 6
percent in the first year and 6.5 per cent in the second year has added a number of
value added services like:
 SMS alert to help the customers keep track of their loan sanctions and
disbursement status.
 The bank also offers its smart Gold credit card to the borrowers and
concessional rates on personal loans and auto loans.
GIC housing finance limited has offered the consumer loans for the purchase of home
equipment at the same rates of interest at the of the home loans and lower than the
other consumer loans.
The tenure of consumer loans is restricted to the tenure of 5 years.
Many banks have also done away with the guarantor for provision of home loans for
amount less than RS.10 lakes, like HSBC housing loan scheme, HDFC bank.
 THE FUTURE OF HOME LOANS
Home loans are a commodity that banks are dying to sell. After all, 30 years of
consumer indebtedness secured with a very tangible asset makes for a great profit,
when you consider the compounding of interest. Yet because of the
subprime mortgage crisis, home loan applications are no longer as easily and quickly
approved as lending institutions used to do.

As a matter of fact, those applying for mortgage loans now must prove their income
and ability to repay the loan before they can even hope to get an interested lender to
take a closer look.

The interest rates on home loans have started coming down after the Reserve Bank of
India (RBI) decision to reduce the repo rate last month. The repo rate is the short-term
lending rate on which the RBI extends short-term loans to banks. The repo rate is one
of the major factors that decide a bank's lending rate. The lowering of the repo rate
has reduced the cost of funds for banks and hence there was a drop in loan interest
rates.

The rates on new loan accounts have come down more than the interest rates on
existing loans. This is because new accounts are viewed as fresh sales. Hence, banks
float many promotional schemes and go aggressive on them. The rate cut happens on
existing loans only when banks get comfortable on their overall cost of funds and are
sure about maintaining their net interest margins

CHANGES IN THE TREND

HFCs may loose against banks in gaining market share race. From 23% of the
incremental market, the share of these companies is likely to fall to 20% at the end of
the financial year. However, banks seem to be on safer side this time because of their
resource profile. They can easily attract deposits and also have current and saving
accounts. Contrary to this, HFCs are largely dependent on wholesale borrowings.
Small companies are in a look out for making a base tier II and tier III cities, where
banking does not have a strong presence. They may also try to raise loan pools,
securitise and sell them to generate large fund for future disbursals.

The ratings on HFCs do not show any significant changes. But the large companies
like LIC Housing and HDFC are still in a better situation, concerning 70% market
share among housing companies.
 FINDINGS

 Mostly service class persons prefer the HDFC bank in the comparison of business and
students and other class persons thus it needs to promote its product and services that are
offered mainly for the business class people and students. Because these two class forms
major users of the banking services.
 HDFC bank is normally not using properly for the current account so its popularity ratio
is quite down. This bank normally using for the long term planning like saving and FD.
 This bank is not investing more into the marketing sector so I will suggest that some of
the part of income it investing in the advertising and marketing sector.
 Into the comparison of other bank its performance is quite good but not an effective so
this may be doing the rates were down with some other facilities.
 CONCLUSION

The study shows that HDFC Home loan has product portfolio for
satisfying different consumer needs in lucrative manner but,the bank
provide the benefits like SMS alert and other features so as to make the
home loans more attractive. The home loan segment can be extended to
the NRI segment; this would provide the bank a cutting edge and larger
share of the home loan market.
The bank can contemplate on decentralizing the operations however
taking into consideration the experience and expertise of the members at
Loan Department enters.
 LIMITATIONS OF THE STUDY:

The study was restricted in understanding the home loan as concept so the
practical implications of the study have been difficult.
The Take Over home loans of high interest rate for low interest rates and their
inherent risks on the banks lending profile has not been undertaken in the study.
The mortgage home loans and its scope on the home loan lending portfoliowere not
studied as this would lead into a relatively new kind of home loan segment.
 SUGGESTIONS & RECOMMENDATIONS

 Mostly service class persons prefer the HDFC bank in the comparison of
business and students and other class persons thus it needs to promote its
product and services that are offered mainly for the business class people
and students. Because these two class forms major users of the banking
services.
 HDFC bank is normally not using properly for the current account so its
popularity ratio is quite down. This bank normally using for the long term
planning like saving and FD.
 This bank is not investing more into the marketing sector so I will suggest
that some of the part of income it investing in the advertising and marketing
sector.
 Into the comparison of other bank its performance is quite good but not an
effective so this may be doing the rates were down with some other
facilities.
 BIBLIOGRAPHY

1. www.HDFCbank.com

2. http://www.HDFCbank.com/pfsuser/loans/homeloans/hlhomepage.htm