AFIFC

PRESENTATION ON

HOME LOANS
Presented to:- Prof. (Dr). Ritesh Srivastava

Presented by:- Prashant Kumar

PGDFS-09-103
 Flow of Presentation…

 About home loans

 Types of home loans
 Objective
 Major Players.
 Measures before availing of home loans
 Documents required for home loans
 Banks I have opted.
 Questionnaire with responses
 Conclusion
 INTRODUCTION

Own house is the dream of every person.

 INTRODUCTION continued……………..

For every common person, it is considered as a life

time achievement as it requires quite a huge amount of money.
 INTRODUCTION continued……………..

Banks play a pivotal role in fulfilling this basic need.

 INTRODUCTION continued……………..

The products they offer and the services they provide are of
immense use to people who intend to have their own house.
Different type of home loan

 Home Purchase Loans

 Home Improvement Loans
 Home Construction Loans
 Home Extension Loans
 Home Equity Loans
 Land Purchase Loans
 Bridge Loans
 OBJECTIVE

 To study the cost of home loans provided by the

bank.

 To know that which bank provide better loan

schemes.

 To analyze the home loan scheme by PNB and

HDFC banks.

 To know the consumer perception about the home

loan of PNB and HDFC
Major Players in Home loans
ABN AMRO
Andhra Bank
Axis Bank
Bank of Baroda
BHW Birla HomeFinance
Canara Bank
Citibank
Corporation Bank
Dewan Housing Finance
GE Money
GE Wizard
HDFC
HSBC
ICICI
IDBI
Indiabulls
Indian Bank
LIC
LIC Housing
PNB
SBI
Standard Chartered
Measures before availing of
housing loan

The following ten-step plan will

certainly help you in
accomplishing the task:
Know about the products:
• Prior to going for a home
loan learn about the
products that various banks
offer; also know about their
terms and conditions.
• After careful study select a
product that suits best to
your financial status.
Know about the rate of Interest:
This is the most important factor
about which we have to think more
than once prior to going for a home
loan.

We have to plan carefully whether we

want to go for a fixed or a floating
interest rate plan.
Have a good clarity from the bank so as to avoid
disappointment in the future.

Also if you go for a fixed interest rate plan, make

yourself clear if it is fixed for the whole tenure or
subjected to changes as per changes in money market
conditions.
Know about the repayment Period:
Choose an apt repayment schedule as per your financial
status and possible future growth.
Usually banks offer a tenure ranging from 1 to 25 years
for home loans, and 1 to 15 years for mortgage loans.
So keeping in mind of your income levels and liabilities
choose your own plan for flexible repayments to avoid
future disappointments.
Know about the eligibility criteria:
Banks usually take fixed and variable income sources
into consideration to approve a home loan.
They reserve the right to sanction or reject the
application if they find any information misleading.
Documents required for home loans

Salaried Individual:- 
• Salary slip/Form 16 A.
• A photocopy of the first and last pages of Ration card or
copy of PAN/Telephone/Electricity bills.
• A photocopy of Investments (FD Certificates, Shares,
any fixed asset etc. or any other documents
supporting the financial background of the borrower.
• A photocopy of LIC policies with the latest premium
payment receipts (if any).
• Photographs (as applicable).
• A photocopy of bank statement for the last six months.
 Documents required for home loans continued………………………………

Self-employed/Businessman:-
 A brief introduction of Business/Profession.
 Balance Sheet, Profit and Loss account and statement of income with
Income Tax returns for the last 3 years certified by a CA.
 A photocopy of Advance Tax payments (if applicable).
 A photocopy of Registration Certificate of establishment under shops
and Establishments Act/Factories Act.
 A photocopy of Registration Certificate for deduction of Profession Tax
(if applicable).
 Bank statements of Current and Saving accounts for the last 6 mnths.
 A photocopy of Certificate of Practice(if applicable).
 A photocopy of any bank loan (if applicable).
 A photocopy of the first and last pages of the Ration card or a copy of
PAN/Telephone/Electricity Bills.
 A photocopy of LIC policy (if applicable).
 A photocopy of investments (FD Certificates, Shares, any other fixed
asset
 Banks I have opted.
Punjab National bank HDFC

PNB Housing Finance Ltd.

(PNBHF).
 PNB & HDFC IN THE NEWS
• PNB- Cheaper Loans!!!.flv

• HDFC- HDFC offers new home loan scheme.flv

Why these two banks?.............
• There attractive interest rate with latest schemes and
benefits.
• Loan at their lowest rate
• Recognized as the pioneer in the world of housing
loans.
Why PNB & HDFC bank for home loans.
• home loans.xlsx
Based on questionnaire
 1) What is your occupation?

Interpretation:-
• Total Number of Respondents was 46.
• 0 of our Respondents was Students.
• 22 of the Respondents were into government employees
• 15 of our Respondents were Businessman.
• 9 of our Respondents were Housewives.
• 4 respondents did not answer.
2) How do you come to know about the home
loan schemes of that bank?

Interpretation :-
• Total Number of Respondents was 46
• 18 persons came to know from newspaper
• 14 persons came to know from television
• 10 persons came to know from internet
• 4 persons came to know from other resources
3) Are you aware of these type of home
loans?

Interpretation :-
• Total Number of Respondents was 46
• Only 4 persons know home equity loan.
• Many of peoples know home construction loan.
• 9 peoples know home purchase loan.
• 6 peoples know home improvement loans.
4) Are you aware all terms and conditions of
home loans?

Interpretation :-
• Total Number of Respondents was 46.
• Many of persons know all terms and conditions of home
loan i.e. 40.
• o6 persons had not know properly about all terms and
conditions.
5) Are you satisfy with the interest rate charges
by your bank?

Interpretation :-
• Total Number of Respondents was 46
• 12 among all consumers are strongly agreed by interest rate
of the bank.
• 30 among all consumers are agreed by interest rate of the
bank
• 4 among all consumers are disagreed by interest rate of the
bank
• 0 among all consumers are strongly disagreed by interest
rate of the bank
6) Do you agree that your bank loan
processing is fast?

Interpretation:-
• Total Number of Respondents was 46.
• 8 persons strongly agree that bank home loan processing
is fast.
• 26 persons agree that bank home loan processing is fast.
• 9 persons disagree that bank processing is fast.
• 3 persons strongly disagree that bank processing is fast.
7)Does the cost of home loan is
appropriate, according to your demand?

• Interpretation :-
• Total Number of Respondents was 46
• 12 among all consumers are strongly agreed by after sale
services of the bank.
• 30 among all consumers are agreed by after sale services
of the bank
• 4 among all consumers are disagreed by after sale services
of the bank
• 0 among all consumers are strongly disagreed by after sale
services of the bank
8)Are you satisfy by the time taken in
sanctioning the loan?

Interpretation:-
• Total Number of Respondents was 46.
• 34 persons are satisfied by the time taken
• 12 persons are not satisfied by the time taken
9)Which grade you want to give of home loan
schemes of the bank?

Interpretation :-
• Total Number of Respondents was 46.
• 24 persons give excellent grade of the bank.
• 18 persons gove good grade to the bank.
• Only 4 persons give average grade to the bank.
• No none give below average grade to the bank
 CONCLUSION

 customers have a good respond towards banking loans

especially in public sector.
 PNB are in 1st position having large number of customers in
home loans & providing good services to them
 PNB & HDFC is the largest in case of home loans in India.
Within a very short period of time the achievement made by
bank in home loans sector is excellent, what a normal bank
cannot expect, but it is being done by both private and
public sector banks. It happens due to employee dedication
towards the organization, fastest growing Indian economy, &
brand image.
 CONCLUSION contnued………………..

• To be the largest advance home loans giver, bank should focus

on-

• Launch Innovative home loans plans.

• Customized advance home loans products
• Better customer services
• Fastest customer’s problem solving techniques
• Customer retention

Apart from all the above, banks believe in providing good

customer services to their customers which is a
key factor for success in future.
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