comparison home loan schemes of hdfc with other banks

1

UNIVERSITY OF MUMBAI.

RAYAT SHIKSHAN SANSTHA’S

KARMAVEER BHAURAO PATIL COLLEGE

VASHI NAVI MUMBAI

COLLEGE CODE-33

PROJECT REPORT ON

“COMPARISION OF HOME LOAN SCHEMES OF HDFC WITH OTHER BANKS”

SUBMITTED BYJAYRAJ R SAWANT

PROJECT GUIDE

PROF. VIMARSHINI JAIRAM

IN PARTIAL FULLFILLMENT FOR THE COURSE OF BACHELOR OF MANAGEMENT STUDIES (B.M.S).

T.Y.B.M.S (SEMESTER V)ACADEMIC YEAR 2014-2015

2

ACKNOWLEDGEMENT

It gives me pleasure to submit this project to the University of Mumbai as a

part of curriculum of my BMS course.

I take immense pleasure in thanking Prof. Vimarshini Jairam for their

valuable assistance in completion of this project.

I take this opportunity to express my sincere gratitude to Respected

Prof. Bhosle (BMS Co-ordinator) of Karmaveerr Bhaurao pati College,

who simultaneously is my project guide also, without whose guidance,

inspiration and motivation; I could not have completed this project

successfully. I take immense pleasure in thanking them for their valuable

assistance in completion of this project.

Finally, yet importantly, I would like to express my heartfelt thanks to

my beloved parents for their blessings, my friends/classmates for their help

and wishes for the successful completion of this project.

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DECLARATION

I Jayraj R Sawant Student of KARMAVEER BHAURAO PATIL COLLEGE,

Studying in BMS (Semester V) hereby declare that I have completed this

project report on “COMPARISION OF HOME LOAN SCHEMES OF HDFC

WITH OTHER BANKS” and as not been submitted to any other university or

institute for the award of any degree, diploma etc. The information submitted

to me is true and original to the best of my knowledge

Date – 10/10/2014 ------------------------

JAYRAJ R SAWANT

Place – Vashi, Navi Mumbai. (Name & Signature of Student)

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UNIVERSITY OF MUMBAI KARMAVEER BHAURAO PATIL COLLEGE

VASHI NAVI MUMBAI-400703

CERTIFICATE

This is to certify that Jayraj R Sawant student of BMS of Semester V has

completed his project on “COMPARISION OF HOME LOAN SCHEMES OF

HDFC WITH OTHER BANKS” has submitted a satisfactory report under the

guidance of Vimarshini Jairam of fulfillment of B.M.S course of University of

Mumbai in the Academic year 2014-2015

Project Guide Co-ordinator Principal

____________ _____________ ___________

University Examiner

__________________

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EXECUTIVE SUMMARY

The main objective of this finance project on comparison of home loan

scheme is to find out the tariff changes charges by other banks in comparison

to HDFC bank.

The aim of the study is to help HDFC to know where it lacks in loans and how

for the performance of other banks is better so that HDFC figure out the

common problems being faced by the customers while dealing in the loan

department so that further HDFC can improve its services and schemes

offered by them to their customers.

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INDEX

71.1

1.2

1.3

1.4

CHAPTER 1

INTRODUCTION

OBJECTIVE OF STUDY

IMPORTANCE OF STUDY

RESEARCH MYTHODOLOGY

1-4

2.1

2.2

2.3

2.4

CHAPTER 2

HDFC

INTRODUCTION

COMPANY PROFILE

ABOUT THE PROJECT

ELIGIBILTY

ICICI BANK

INTRODUCTION

HISTORY

DOCUMENTS REQUIRED FOR SACTIONING LOAN

DISBURSTMENT

AMOUNT SANCTIONED, TENSURE, RATE OF INTEREST

FEES, BENEFITS

PNB BANK

INTRODUCTION

HISTORY

DOCUMENTS NEEDED, SANCTION SPEED,TENSURE, RATE OF

INTERES

SBI

INTRODUCTION & HISTORY

SCHEMES PROVIDED BY SBI & ELIGIBLITY , CRITERIA AND

DOCUMENTATION

PREPAYMENT & LATE PAYMENT CHARGES, ELIGIBILITY

5-8

9-16

17-21

22-26

3.1

3.2

3.3

3.4

3.5

CHAPTER 3

THEORITICAL VIEW

LOAN AMOUNT , LOAN TENSURE, RATE OF INTEREST,(HDFC)

SWOT ANALYSIS OF HOUSING FINANCE INDUSTRY

SWOT ANALYSIS OF HDFC HOME LOAN SCHEME

COMPARITIVE STATEMENT OF HOME LOAN

RECOMMENDATION

27-33

4.1

4.2

4.3

4.4

4.5

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

HDFC V/s ICICI RATE OF INTEREST LAST 5 YEARS

HDFC V/s SBI RATE OF INTEREST LAST 5 YEARS

HDFC V/s PNB RATE OF INTEREST LAST 5 YEARS

HDFC V/s ICICI V/s SBI V/s PNB HOME LOAN AGE LIMIT

HDFC V/s ICICI V/s SBI V/s PNB TENSURE OF LOAN

HDFC V/s ICICI V/s SBI V/s PNB NO OF DAYS FOR

DISBURSEMENT

HDFC V/s ICICI V/s SBI V/s PNB CUSTOMERS FROM

34-56

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PREFACE

Modern organizations are highly complex ad dynamics systems. They

operate under very turbulent social economic and political environment. They

are required to reconcile several incompatible goals. Conflicting roles and

divergent interest they are also fraught with the use risk and uncertainties,

hence tactful management of such organization to plan to execute guide,

coordination and control the performance of people to achieve predetermined

goals. Management has to keep the organization vibrant moving and in

equilibrium. It has to achieve goal which themselves are changing it is

therefore a problem highly complex and ticklish.

This information will be asset to marketing manager in making effective

decisions. The researches are used to acquire and analyze information and to

make suggestions to management as to how marketing problems should be

solved.

The objective of this project is to enable the students to understand the

application of the academics in the real business life. I am fully confident that

this project report will be extremely useful to the management.

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CHAPTER 1

1.1 INTRODUCTION

The roof over one’s head and ground beneath one’s feet count as the bare

necessities of life. There’s nothing quite like owing a home, however humble

to give that warm and glowing feeling. But when one buys a home, one has

much more than a feel good purchase in mind! It’s also a crucial investment

decision, perhaps the biggest spending decision of one’s life. There are

ample opportunities today for young salaried investors to plan their moves

early and buy a house at right time- and at right price. In the process, not only

do they fulfill that cherished dream of owing a house, but also put themselves

on the path to acquiring property that would meet the needs and aspirations

of their growing family, even as it leads to wealth creation. Every individual

aspires to own a home. But many either spend a lifetime saving to purchase a

house or exhaust money on monthly house rents.

Take a house loan and let the monthly rent (easily converted into

affordable EMI’s) build dream home.

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1.2 OBJECTIVE OF THE STUDY:

To study the main objective is to find out the tariff changes charges by

other banks in comparison to HDFC bank.

“The overall demand in the residential sector as grown by about 7-8%

in past few months as compared to the same period last year”

To study the variety of loan as compared to other banks, as they

should promote their bank loan in agriculture and rural sector with

minimum documentation.

There should be easy repayment schedule which would help the

HDFC bank to make their recognize itself in financial.

1.3 IMPORTANCE OF STUDY :

The study is to help HDFC to know where it lack in loans, performance

and other facilities as compare to other banks and figure out the

problem faced by the customer while transaction.

Comparision of loan schemes with four banks HDFC, ICICI, SBI and

PNB.

To promote their other facilities or extra service provided by HDFC

Bank

To reduce the documentation while opening A/c or while loan

disbursement

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1.4 RESEARCH MYTHODOLOGY

Research methodology is an important part of every project. Because it helps

in knowing how to select the representative sample from the world or the

general population, the right research tools and techniques to complete the

research.

The study of the consumer behavior is important because he is the king. The

research process is based upon survey method, so in order we go to service

provider and services user which is the customers.

The research involves the following steps:

Define the problem and research objective: The problem and

objective is to assess the services offered by the various service

providers and what the customer wants.

Developing the research plan: The second stage of the research

methodology is to develop a research plan. The research plan

designed to take the decision on the data sources, research

approaches, research instruments, sampling plan and contact

methods.

Survey research: It was a descriptive research.

Research instrument: The use of an effective research instrument is

very important because through this instrument we collect data in this

project through observations and personal interview were conducted.

Personal interview: as we were doing direct selling we interacted with

my customers and asked about their views in selecting a service and

what are their wants and expectations from a service provider.

Sampling plan: After finalizing the research approach and instruments

a sampling must be designed.

Sampling unit: Different Proffessional, Charted Accounts, Tax

consultants, Lawyer, Business man, Professionals And Housewives.

Sampling Technique: Random sampling.

Research Instrument: Structured Questionnare.

Contact Method: Personal Interview.

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Sampling size: My sample size for this Project was 200 respondents.

Since it was impossible to cover the whole universe in the available

period time.

Sampling procedure: what process should be used to collect the

sample. So, representation sample, convenience sampling is used.

Collect the information: After completing all the steps, the data are

collected from different sources.

Analyze the information: After the data is collected they are analyzed

to know the findings. The data is then tabulated to develop the

frequency distribution.

Present the findings: As the last step, the findings are presented that

are relevant to the major marketing decisions.

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CHAPTER 2

2.1 HDFC BANK

INTRODUCTION

HDFC (Home Development Finance Corporation) Home Loan, India have

been serving the people for around 3 decades and providing various housing

loan according to their varied needs at attractive and reasonable interest

rates. Owing to their wide network of financing, HDFC Home Loans provide

services at doorstep and helps you find a home as per your requirements.

COMPANY PROFILE

HDFC Limited founded in 1997 by Ravi Maurya and Hansmukh bhai Parekh,

is an Indian NBFS focusing on home loans. HDFC operates through almost

450 locations throughout the country with its corporate head quarters in

Mumbai, India. HDFC also has an international office in Dubai, UAE with

service associates in Kuwait. HDFC is the largest housing company in India

for the last 27 years.

HDFC was amongst the first to receive an in principal approval from RBI to

set up a bank in the private sector, as a part of the RBI’s liberalization of the

Indian banking industry. It was incorporated on 30th august 1994 in the name

of ‘HDFC Bank Limited’, with its registration office in Mumbai. HDFC began its

operations as a scheduled commercial bank on 16th January 1995.

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ABOUT THE PROJECT

This project is based on the study of “Comaprision of home loan schemes of

HDFC with other banks”. An insight view of the project will encompass- what

it is all about , what it aims to achieve, what is its purpose and scope , the

various methods used for collecting data and their sources, including

literature survey done, further specifying the limitation of our study and in the

last drawing inferences from the learning so far.

This project tires to evaluate how the Home loan schemes and procedure are

done in HDFC bank through their loan procedure, rate of interest as

compared to other banks, duration of home loan disburstment,

documentation procedure while opening account.

Primary Data :- All the people from different professions were

personally visited and interviewed. They were the main source of

primary data. The method of collecting primary data was direct

personal interview through a structured questionnaire.

Secondary Data :- It was collected from the internal sources. The

secondary data was collected on the basis of organization files,

newspaper, official records, magazines and the website of the

company.

HDFC LOAN SCHEME PURPOSE

HDFC Limited offers loans for the following purposes:

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Land purchase

Home construction/purchase

Home extension

Home improvement loans

Short-term bridge loans

Non-resident premises loans for professionals.

DOCUMENTS REQUIRED FOR HDFC HOME LOAN

SALARIED CUSTOMER SELF EMPLOYED

PROFESSIONALS

SELF EMPLOYED BUSINESS

Application form with photograph Application form with photograph Application form with photograph

Identity and Residence Proof Identity and Residence Proof Identity and Residence Proof

Latest Salary-slip Education Qualifications

Certificate and Proof of business

existence

Education Qualifications

Certificate and Proof of business

existence

Form 16 Last 3 years Income Tax returns

(self and business

Business profile

Last 6 months bank statements Last 3 years Profit /Loss and

Balance Sheet

Last 3 years Income Tax returns

(self and business)

Last 3 years Profit /Loss and

Balance Sheet

Processing fee cheque Last 6 months bank statements

Processing fee cheque

Last 6 months bank statements

(self and business)

Processing fee cheque

ELIGIBILITY

The repayment capacity as determined by the HDFC will help in deciding how

much we can borrow (the cost of the property or Rs.1crore whichever is

lower). Repayment capacity takes into consideration factors such as income,

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age, qualifications, number of dependents, spouse’s income, assets,

liabilities, stability and continuity of occupation and saving history. And, of

course, HDFC’s main concern is to make sure you can comfortably repay the

amount you borrowed

FEE:

A processing fee of 0.5% of the loan amount applied for rs.5 per rs.1000 of

the loan applied for is payable when the application form is submitted to

HDFC. This fee is in the respect of costs incidental to the application. For

example:

Loan applied for Fees

Rs.20000 Rs.100

Rs.100000 Rs. 500

On approval of the loan, a loan offer is made to you on acceptance of the

offer. You have to pay an administrative fee of Rs.0.5% of the loan approved.

You can also pay the processing fee and administrative fee upfront i.e. 1% of

the loan at the time of submission of the loan application itself. This fee is in

respect of the costs incidental to the application. Taxes as applicable will be

charged on the fees collected.

CHARGES:

For Fixed Rate Home Loan (FRHL) an early redemption charge of 2% of the

amount being prepaid is payable, if the amount being repaid is more than

25% of the opening balance. However under Adjustable Rate Home Loan

(ARHL) option early redemption charges of 2% is payable only in case of

commercial refinance. You may be required to submit the copies of your Bank

Statements or any other documents that HDFC deems necessary to verify the

source of prepayment.

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You can make payment for fees and charges by cheque marked “payee’s

account only” drawn on a bank in a city where HDFC has an office or by

demand draft (payable at par to HDFC).

2.1 ICICI HOME FINANACE COMPANY LTD

Consumer friendly housing finance company

INTRODUCTION

ICICI Bank is an Indian multinational banking and financial services company

headquartered in Vadodara. As of 2014 it is the second largest bank in India

in terms of assets and market capitalization. It offers a wide range of banking

products and financial services for corporate and retail customers through a

variety of delivery channels and specialized subsidiaries in the areas

ofinvestment banking, life, non-life insurance, venture capital and asset

management. The Bank has a network of 3,800 branches and

11,162 ATMs in India, and has a presence in 19 countries.

ICICI Bank is one of the Big Four banks of India, along with State Bank of

India, Punjab National Bank and HDFC. The bank has subsidiaries in the

United Kingdom, Russia, and Canada; branches in United States, Singapore,

Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance

Centre; and representative offices in United Arab Emirates, China, South

Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK

subsidiary has also established branches in Belgium and Germany.

In March 2013, Operation Red Spider showed high-ranking officials and some

employees of ICICI Bank involved in money laundering. After

a government inquiry, ICICI Bank suspended 18 employees and faced

penalties from the Reserve Bank of India in relation to the activity.

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HISTORY

ICICI Bank was established by the Industrial Credit and Investment

Corporation of India (ICICI), an Indian financial institution, as a wholly

owned subsidiary in 1994. The parent company was formed in 1955 as a

joint-venture of the World Bank, India's public-sector banks and public-sector

insurance companies to provide project financing to Indian industry. The bank

was initially known as the Industrial Credit and Investment Corporation of

India Bank, before it changed its name to the abbreviated ICICI Bank. The

parent company was later merged with the bank.

ICICI Bank launched internet banking operations in 1998.

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a

public offering of shares in India in 1998, followed by an equity offering in the

form of American Depositary Receipts on the NYSE in 2000. ICICI Bank

acquired the Bank of Madura Limited in an all-stock deal in 2001 and sold

additional stakes to institutional investors during 2001-02.

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.

In 2000, ICICI Bank became the first Indian bank to list on the New York

Stock Exchange with its five million American depository shares issue

generating a demand book 13 times the offer size.

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,

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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.

In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs

and branches in some locations due to rumours of adverse financial position

of ICICI Bank. The Reserve Bank of India issued a clarification on the

financial strength of ICICI Bank to dispel the rumours.

DOCUMENTS REQUIRED FOR SANCTION HOME LOAN

ICICI Bank Home Loans, India’s leading Home Loans Provider, offers

attractive interest rates and unbeatable benefits to ensure that you get the

best deal. Keeping your convenience in consideration, we ask you for minimal

mandatory documents for the sanctioning of your home loan, to keep the

process totally hassle-free.

HOME LOAN

1) Customer must be at 21 year of age when the loan is sanctioned.

2) The loan must terminate before or when you twin 65 year of age or before

retirement,Whichever is earlier.

3) Customer must be employed or self employed with regular source of

income

http://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htm

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We require the following documents to sanction your home loan

Sanction Documents Completed application form

Photograph

Fee Cheque

Photo Identity Proof

Age Proof

Signature Verification Proof

Residence Address Proof

Document for the Salaried

Last 3 months’ Salary Slip

Form 16

Bank Statement for the last 6 months from Salary Account

Repayment Track record of existing loans / Loan closure letter

Document for the Self-employed

Income Tax Return / Computation of Total Income / Auditors Report / Balance

Sheet / Profit & Loss Account certified by Chartered Accountant for last 2

years (3 years for Home Equity) (both for business and personal of

partners/directors)

Bank statement for the last 6 months from operating account

Repayment Track record of existing loans / Loan closure letter

Board Resolution in case of a company

Proof of existence

Office Address Proof

Photo Identity Proof, Residence Address Proof, Signature Verification

Statement for all the main partners / directors.

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DISBURSEMENT

Customer loan will be disbursed after you identify & select the property or the

home that customer are purchasing and on their submission of the requisite

legal documents.

While the customer may be under impression that the list of documents asked

for it is rather extensive. Each and every single document asked for will be

verified & check to ensure their safety. This may take some time but the

banks want to ensure a clear title and will complete all the legal & technical

verification to ensure that they have full right to their home.

The 230 a clearance of the sellers or 371 clearance from the appropriate

income tax authorities (if applicable) is also needed on satisfactory

completion of above, on registration of conveyance deed and on the

investment of your own contribution, the loan amount (as warranted by the

stage of construction) will be disbursed by ICICI.

The disbursement will be in favor of the builder/seller.

At ICICI Bank Home Loans, we disburse the loan amount after you identify

and select the property or home that you are purchasing and submit the

requisite legal documents.

While you may be under the impression that the list of documents asked for is

rather extensive, please note that it is for your own good. Each and every

single document asked for will be verified and checked to ensure your safety.

This may take some time but we want to ensure a clear title and will complete

all the legal and technical verifications to ensure that you have full rights to

your home.

Your loan will be disbursed after you identify and select the property or home

that you are purchasing and on your submission of the requisite legal

documents.

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The 230 A Clearance of the seller and / or 37I clearance from the appropriate

income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the conveyance

deed and on the investment of your own contribution, the loan amount (as

warranted by the stage of construction) will be disbursed by ICICI Bank

Property documents (as per P&D for respective states and as asked by

empanelled lawyers for individual cases)

Facility Agreement

Disbursal Request Form

Cheque Submission Form – for Pre EMI and EMI cheques

ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for

EMI / Pre EMI

Personal Guarantor’s Documents (PG Form, Photograph, Identity Proof,

Address Proof, Signature Verification and Income documents, if applicable)

In case of property is owned by a company

Memorandum of Entry

Form 8

NOC

AMOUNT

This largely depend on a no. of facts like ones age ,profession, salary, the city

one reside is among other such factors. it varies between 2.1lakh to 1crore

depending on the lender- as the rule of the thumb, depending on HFC one

have to cough up 15% - 20% of the loan amount as the down payment. For

smaller amount, this may not be much. But for figure remaining into lakh this

could make loads of difference. For e.g. an apartment of costing Rs 10 lakh

may get 85% financing, so one will have to arrange for remaining Rs 15 lakh.

If one takes this into amount the additional thousands will definitely put a

strain on ones finances

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TENURE

Generally the maximum tenure of home loans is 15 years, with a few lenders

offering tenure of 20 years or more. ICICI offers 15 year loan. The longer the

tenure, the more one pay in total interest but ones monthly payment will be

less. So depending ones earning potential & bank balance one can choose an

appropriate tenure.

INTEREST RATE

Without doubt the most important parameter to factor into ones calculations.

The interest rates may vary from institution to institution. Repayment is in the

form of EMI’s (equated monthly installment). The longer the tenure, the more

one pays in interest, but ones monthly payment will be less.

Tenure Interest Type Interest Rate

15 -20 Fixed 13.75 %

10 -15 Fixed 16 %

5 - 10 Fixed 16 %

1 - 5 Fixed 16 %

1 - 5 Floating 16 %

5 - 10 Floating 11.25 %

10 - 15 Floating 16 %

15 - 20 Floating 16 %

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PROCESSING FEES

It is the fee payable to the lender on applying for a loan. It is either a fixed

amount not linked to the loan or may be a percent of the loan amunt. The loan

amount received by you can be less than processing fee

BENEFITS

Some of our key benefits are:

Guidance through out the process

Home loan amounts suited to your needs

Home Loan tenure upto 20 years

Simplified documentation

Doorstep delivery of home loan papers

Sanction approval without having selected a property.

Free Personal Accident Insurance (Terms & Conditions)

Insurance options for your home loan at attractive premium

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2.3 PUNJAB NATIONAL BANK

INTRODUCTION

PNB has over 4500 branches and offices bringing the Punjab National Bank

to your doorstep. Around 2400 offices come under the network of Centralized

Banking Solution or CBS. A need for centralized banking system prompted

PNB to go computerized and what followed was the establishment of CBS in

Punjab National Bank branches in all the leading cities like Delhi, Pune,

Chennai, Mumbai, Ahmedabad, Chandigarh, Gurgaon, Hyderabad,

Jalandhar, Kolkata, Ludhiana, Nodal and Bangalore. Internet Banking

Services are provided to all customers in the CBS branches. A branch and

ATM locator is also available on the official website of Punjab National Bank.

For an overview of the annual report or the bank profile, the site can be

resourceful. The website also provides info on the careers and recruitments at

PNB and the exam results. The careers at nationalized banks like PNB are

the most sought after one and candidates are selected on the basis of their

exam result. PNB topped the Best Paying Commercial Bank category with an

overall rating of 87.45% as evaluated by the SSS Retirement, Death &

Funeral Benefits Program.

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PNB HISTORY

Punjab National Bank of India was established by Lala Lajpat Rai in the pre-

independence India in 1895 in Punjab, with Lahore as its head office. Today it

is the second largest public sector bank in India. It was nationalized in 1969

along with 13 other major commercial banks. The privatization started in 1989

when 30 per cent of its shares were offered to the public and it was listed on

the stock exchange.In 1992, PNB became the first Philippine bank to reach

P100 billion in assets. Later that year, privatization continued with a second

public offering of its shares. In August 2005, PNB was fully privatized. The

joint sale by the Philippine government and the Lucio Tan Group of the 67%

stake in PNB was completed within the third quarter of 2005. The Lucio Tan

Group exercised its right to match the P 43.77 per share bid offered by a

competitor and purchased the shares owned by the government. The

completion of sale is expected to speed up the development of PNB’s

franchise and operational competitiveness.

Today, State Bank of India (SBI) has spread its arms around the world and

has a network of branches spanning all time zones. SBI's International

Banking Group delivers the full range of cross-border finance solutions

through its four wings - the Domestic division, the Foreign Offices division, the

Foreign Department and the International Services division.

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DOCUMENTS NEEDED

1. Proof of identity

2. Proof of income

3. Proof of residence

4. Bank statement or Pass Book where salary or income is credited.

5. Education Certificate

6. Photos

7. Salary slips & form 16

8. Income tax return last 3 years along with balance sheets.

9. Assets liabilities statements.

10. Documents of property.

11. Estimate of construction.

12. Guarantor

SPEED OF SANCTION OF LOAN :-

The loan will be sanctioned within 7 working days.

TENURE:-

You can repay the loan over a maximum period of 25 years under both FRHL

and ARHL in SBI . Repayment will not ordinarily extend beyond your age of

retirement (if you are employed) or on your reaching 65 years of age,

whichever is earlier.

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RATE OF INTEREST

For repayment

period

Fixed Option

for loans(Upto

20

lac)

Fixed Option

for

loans(Above

20

lac)

Floating

Option for

loans(Upto

20

lac)

Floating

Option for

loans(Above

20

lac)

i) Upto 5 years 9.25 10.00 8.75 9.50

ii) Above 5 & upto

10 years10.00 10.25 9.00 9.50

iii) Above 10 & upto

20 years10.50 10.75 9.25 9.75

iv) Above 20 yrs &

upto 25 yrs.10.75 11.00 9.50 10.00

The interest rate can be fixed or floating

Option can be changed from fixed to floating and vice versa with flat charges

of 2% fee on balance outstanding.

Fixed interest rate be reset after a block of 5 year in respect of loans

disbursed on or after 1.08.2006

DOCUMENTATION CHARGES

Rs. 1350 + Service Tax

Pre payment charges 2%

Balance Transfer Charges

(incase of refinance) 2%

Part-payment Charges Nil

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Switching Charges

(Fixed to Floating or vice-a-versa) Nil

UPFRONT FEE

For loans up to Rs. 300 lacs = 0.50% of the loan amount with a cap of Rs.

20,000/-

For loans above Rs. 300 lacs =0.90% of the loan amount

DISBURSEMENT FOR HOME LOAN

a. For outright purchase of house/flat, the loan amount will be paid in

lump sum to the vendor.

b. For house/flat under construction, the loan amount will be dispersed in

stages as per progress of construction/demand by selling agency.

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2.4 STATE BANK OF INDIA

INTRODUCTION

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast

domestic network of over 9000 branches (approximately 14% of all bank

branches) and commands one-fifth of deposits and loans of all scheduled

commercial banks in India. The State Bank Group includes a network of eight

banking subsidiaries and several non-banking subsidiaries offering merchant

banking services, fund management, factoring services, primary dealership in

government securities, credit cards and insurance. The eight banking

subsidiaries are: State Bank of Bikaner and Jaipur (SBBJ),State Bank of

Hyderabad (SBH).State Bank of India (SBI),State Bank of 13 Indore

(SBIR),State Bank of Mysore (SBM),State Bank of Patiala (SBP),State Bank

of Saurashtra (SBS) and State Bank of Travancore (SBT). Today, State Bank

of India (SBI) has spread its arms around the world and has a network of

branches spanning all time zones. SBI's International Banking Group delivers

the full range of cross-border finance solutions through its four wings - the

Domestic division, the Foreign Offices division, the Foreign Department and

the International Services division.

31

HISTORY

The origins of State Bank of India date back to 1806 when the Bank of

Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank

of Bengal and two other Presidency banks (Bank of Madras and Bank of

Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the

controlling interest in the Imperial Bank of India was acquired by the Reserve

Bank of India and the State Bank of India (SBI) came into existence by an act

of Parliament as successor to the Imperial Bank of India.

Today, State Bank of India (SBI) has spread its arms around the world and

has a network of branches spanning all time zones. SBI's International

Banking Group delivers the full range of cross-border finance solutions

through its four wings - the Domestic division, the Foreign Offices division, the

Foreign Department and the International Services division.

Main SBI Home Loan Schemes

SBI Realty : Purchase of plot of land

SBI Optima : Loan to existing home loan borrowers

SBI Green Home Loan : For homes that fight against the adverse

climate change, SBI offers 0.25% concession in interest rate and

waiver of processing fees

SBI Flexi : Combination of floating and fixed interest rate, in a pre

determined ratio

NRI Home Loans : Loans for NRIs and PIOs

SBI Freedom : Pledging other financial security than mortgaging the

house

32

SBI Max Gain : Operate your home loan account like your SB or

CurrenAccount

SCHEMES PROVIDED BY SBI & ELIGIBLITY , CRITERIA AND

DOCUMENTATION

Salaried Self employed

Age 21years to 60years 21years to 70years

Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)

Loan Amount

Offered5,00,000 - 1,00,00000 5,00,000 - 2,00,00000

Tenure 5years-20years 5years-20years

Current

Experience 2years 3years

Documentation

1) Application form with

photograph

2) Identity & residence

proof

3) Last 3 months salary

slip

4) Form 16

5) Last 6 months bank

salaried credit

statements

6) Processing fee

cheque

1) Application form with

photograph

2) Identity & residence proof

3) Education qualifications

certificate & proof of business

existence

4) Business profile,

5) Last 3 years profit/loss &

balance sheet

6) Last 6 months bank

statements

7) Processing fee cheque

YEAR 1 – 8% FIXED .

YEAR 2 & 3 – 9% FIXED.

YEAR 4 ONWARDS – FOR LOAN UP TO 50 LAKHS 9.25% FLOATING.

33

FOR LOAN OVER 50 LAKHS 9.75% FLOATING.

PREPAYMENT CHARGES

If paid from own source- Nil, In other cases- 2% on principal amount prepaid

LATE PAYMENT CHARGES

If paid from own source- Nil, In other cases- 2% on principal amount prepaid

PROCESSING FEE

FEES RUPEES

Upto 5 lakh

5lakh-10lakh

10lakh-20lakh

20lakh-50lakh

50lakh-1crore

1crore-5crore

Above 5 crore

Rs. 1000

Rs. 2000

Rs 5000

Rs. 7000

Rs. 8000

Rs.10,000

Rs.20,000

34

ELIGIBILITY

The minimum age of the applicant is 18 years, on the date of the sanction of

the loan. The maximum age limit for a Home Loan applicant is 70 years. It is

the maximum age limit, within which the loan should be fully repaid. The

applicant should consist of sufficient, regular and continuous source of

income for repaying the loan.

SCHEMES PROVIDED BY SBI

The Most Preferred Home Loan provider SBI Bank offers a Home Loan with

Attractive Interest Rates with Latest Schemes and Benefits. SBI also provides

a Housing loan with different schemes. Schemes Are:-

1. SBI Easy Home Loan

2. SBI Advantage Home Loan

3. SBI Housing Finance Scheme

4. SBI Happy Home Loans

5. SBI Life Style Loan

6. SBI Green Home Loan

7. SBI Home Plus

8. SBI Home Line

9. SBI MY HOME CAMPAIGN

35

CHAPTER 3

THEORITICAL VIEW

LOAN AMOUNT OF HDFC

You can avail of maximum of up to 85% of the cost of the property, including

the cost of the land.

LOAN TENURE

You can repay the loan over a maximum period of 20 years under both FRHL

and ARHL. Repayment will not ordinarily extend beyond your age of

retirement (if you are employed) or on your reaching 65 years of age,

whichever is earlier. However, HDFC will endeavor to determine the

repayment period to suit your convenience.

RATE OF INTEREST

The rate of interest of HDFC is 8.75%.under the monthly rest option, interest

is calculated on monthly rests. Principal repayment is credited at the end of

every month.

At HDFC you have the choice between the normal FRHL and the innovative

ARHL. Alternatively you can also avail the part of the loan under FRHL and

balance under ARHL.

HDFC also offers you the option to switch between schemes for the nominal

fee. Interest rates on ARHL will be linked to HDFC’s Retail Prime Lending

Rate (RPLR) which currently is 13.75% .The rate on your loan will be revised

every three months from the date of first disbursement, if there is a change in

36

RPLR, i.e. the interest rate on your loan may change. However, the EMI on

the home loan disbursed will not change. (if the interest rate increases, the

interest component in an EMI will increase and the principal component will

reduce, resulting in an extension of the term of the loan, and vice versa when

the interest rate decreases).customer will be provided with an annual

statement indicating the details of the interest and principal payment made

during the year.

Upto and including Rs 30 lakhs – 10.25% - 10.75 %

Above Rs 30 lakhs – 10.50%- 11.00 %

3.2 SWOT ANALYSIS OF HOUSING FINANCE INDUSTRY

STRENGTHS :-

1) The industry has been witnessing very fast growth rate, which is 6%

growth in the first

2) Quarter of 2002-2003 as against 3-5% growth recorded in the first

quarter of 2001-2002

3) The market faces a high demand curve, thoroughly mismatched by a

low supply curve

4) Investment is based in assets that are securities & those that have

historically appreciate rapidly.

5) Tax benefit & other facilities provided on loan repayments.

WEEKNESSES :-

1) The foreclosure rules of court of law such as provision regarding the

ownership of not more than one house (in Delhi) binds the industry.

2) The healthy of an HFC depend upon its ability to mob up low cost

funds.

3) AN HFC is unable to tap the rural market due to lack of proper retrieval

procedures so whilst

37

4) The rural market offers a higher rate of return; it has a higher risk &

default rate.

5) Many legal impendent exist, deferring purchase of certain types of

property beyond a

6) Certain extent thereby negatively impacting weak mortgage laws,

resulting in an increase in risk compo ending

OPPORTUNITIES

1) The housing industry faces a severe shortage of houses. The total

demand for houses is Expected to touch around 19.40 million units by

the year 2003 of these 12.8 million

2) Dwelling units (65-98%) would be in rural areas & 6.6 millions dwelling

units (34.02%) in urban areas.

3) While the loan facility is backed by the security of property this sector

represent a low margin But on the low margin but on the same line low

risk segment. The address this

4) Market the ones lies on the HFCS to device bold & innovative

alternatives like mortgage Based securities use of method such as

door to door collection of installments assessing the Creditworthiness

of the prospective client and providing for group securities.

5) The roles of NHB in refinancing & providing regulation of housing

finance system.

6) The government’s initiatives to promote the sector & its contribution in

uplifting the sector.

THREATS

The industry faces increased competition as more & more foreign

backs & Housing Finance Companies are providing loan facility.

38

3.3 SWOT ANALYSIS OF HDFC HOME FINANACE

STRENGTH

1) Save substantial interest.

2) Prepay whenever the customer.

3) Reduce their loan outstanding.

4) Access the surplus finds anytime.

5) Use surplus funds to invest when the right opportunities arises.

WEAKNESS

Product is very good but it is mainly suitable for higher income group & is not

suitable for the Middle income group

OPPORTUNITIES

There is ample scope for financing flats & apartments for the salaried class in

the higher income Group.

THREATS

1) Nationalized banks like SBI, Union Bank, PNB.

2) Private Banks likes HDFC & standard chartered & Citi Bank with its home

credit scheme.

39

3..4 COMPARITIVE STATEMENT OF HOME LOAN

PARTICULARS HDFC ICICI PNB SBI

ROI(FIXED) 14% 1-5Yrs. -16%

5-10Yrs.-

16%

10-15Yrs.-

16%

15-20Yrs-

13.75%

Up to 5yrs-

9.25% (up to 20

lakh)

&

10% (above 20

lakh)

Year 1 - 8%

Year 2 & 3 -

9%

5 to 10yrs-10%

(up to 20 lakh)

&

10.25% (above

20 lakh )

10 to 20 yrs-

10.50% (up to

20 lakh)

&

10.75% (above

20 lakh)

ROI(FLOATING) Up to 30lakh-

8.75%

30 lakh-

50lakh-9%

Above50lakh

-9.25%

1 - 5 Yrs.- 16

%

5 - 10 Yrs.-

11.25 %

10 - 15 Yrs.-

16 %

Up to 5yrs-

8.75% (up to 20

lakh)

&

9.50% (above

20 lakh)

Year 4

onwards -

up to 50 lakh-

9.25%

40

15 - 20 Yrs-

16 %

over 50

lakhs-9.75% 5 to10yrs-9%

(up to 20 lakh)

&

9.50%(above

20 lakh )

10 to20yrs-

9.25% (up to 20

lakh)

&

9.75% (above

20 lakh)

PROCESSING

FEE

0.5% 0.5% 0.5% 0.5%

PENALTY 2% 2% 2% 2%

TENURE 25 years 15 years 20 years 25 years

MINIMUM AGE 21 25 25 25

MAXIMUM AGE 60 55 55 55

41

3.5 RECOMMENDATION

The following suggestions are strongly recommended:

To broaden the customer base the vast middle income strata should

be fully exploited.

Simplify the procedure, reduce service charges & demand only the

basic essential proof.

Most banks are reluctant to advance loan to the service class. E.g. law

years, police officers etc. this aspect must be exploited.

Adoption of flexible & more lenient penalty should the

Customer fails to deposit the payment on time. The penalty should be

case to case basis rather than the same for the entire customer base.

Restriction to be reduced to bare minimum for loan advances & for

repayment. For e.g. offers Long term repayment facilities & have no

age restriction to choosing repayment. The maximum age for

repayment could be increase to 65-70 years of age. Such facility will

grow fast retail segment of the bank.

Offer multiple repayment loans services. Class to be exploited by

offering special reduced

Rates & linking the repayment from the source where the pay cheque

to the employee is issued. This need to undergo special contract with

government organization to ensure implementation

42

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4.1 HDFC V/s ICICI RATE OF INTEREST LAST 5 YEARS

(FLOATING)

NO OF YEARS(LAST

5 YEARS)

HDFC (RATE OF

INTEREST)

ICICI (RATE OF

INTEREST)

SBI (RATE OF

INTEREST)

PNB (RATE OF

INTEREST)

2009-2010 10.75% 16.1% 9.79% 11.15%

2010-2011 10.85% 15.25% 9.89% 11.85%

2011-2012 11.00% 14.85% 9.95% 12.20%

2012-2013 12.05% 13.85% 9.95% 12.50%

2013-2014 12.20% 12.75 % 9.98% 12.75%

X AXIS- NO OF YEARS

Y AXIS – RATE OF INTEREST (%)

43

2009-20102010-2011

2011-20122012-2013

2013-2014

0

2

4

6

8

10

12

14

16

18

HDFCICICISBIPNB

X axis – Years

Y axis – Rate of interest .

44

INTERPRETATION :-

In this Y axis is the rate of interest and X axis is the number of years,

as in this red is the HDFC bank and ICICI.

In this graph HDFC and ICICI bank has been compared with the

floating rate of interest of home loan

In last 5 years the rate of interest of both banks are fluctuating and thus

result increase and decrease in rate of interest

In the year 2009 the HDFC bank had 10.75 % of rate of interest,

whereas ICICI was 16.1% , in 2013-2014 HDFC were 12.20 % and

ICICI were 12.75%

Because of increasing rate of interest also HDFC attracts the customer

by

0.55 %

This results the rate of interest of HDFC is 0.55 % lower than ICICI

bank.



In the year 2009, the rate of interest of SBI was 9.79 % and HDFC was

10.75 % whereas in the year 2013 -2014 as the rate of interest

increase constantly the SBI manage to keep the rate of interest under

10.00% this result many of middle class and lower class people were

attracted to SBI.

Whereas HDFC were constanly increasing and at the end of 2013 the

rate of interest was 0.22 % that is 12.20 % interest and lose many of

customers



In the year 2009, the rate of interest of PNB was 11.15 % and HDFC

was 10.75 % whereas in the year 2013 -2014 as the rate of interest

increase constantly HDFC bank was 12.20% and PNB 12.75 %

This results in that HDFC try to manages to keep their old customer in

their hand and attracted their new customer by giving 0.55 % less

interest with their rival banks

45

4.2 HDFC V/s ICICI V/s SBI V/s PNB HOME LOAN AGE LIMIT

BANKS 21-26 35-45 45-60

HDFC 10% 15% 25%

ICICI 5% 40% 5%

SBI 30% 18% 2%

PNB 25% 15% 5%

HDFC ICICI SBI PNB 0%

5%

10%

15%

20%

25%

30%

35%

40%

21-2635-4545-60

X AXIS – BANKS

Y AXIS- PERCENTAGE

46

INTERPRETATION :-

In the above graph, the rate of interest of two banks have been

compared,

As Y axis indicates percentage and X axis indicates banks.

In the above graph all for banks give loan to a certain age limit where

all four banks have different age limit. :-

At the age of 21-26 HDFC had given loan 10%, ICICI 5% whereas SBI

and PNB have 30% and 25% respectively, In this age the SBI

considers the most because of their 20 years of loan tensure.

At the age of 35-45, HDFC had given 15%, ICICI 40%, whereas SBI

and PNB have 18% and 15% repectively, In this ICICI considers the

most because while sactioning the loan the sanctionnee should be

capable of paying the loan

At the age of 45-60, HDFC had given 25%, ICICI 5% whereas SBI 2%

and PNB 5% respectively, in this HDFC considers the most because at

this age no other comparative bank gives loan.

47

4.3 HDFC V/s ICICI V/s SBI V/s PNB TENSURE OF LOAN

BANKS HDFC ICICI SBI PNB

TENSURE 25 15 20 25

HDFC ICICI SBI PNB0

5

10

15

20

25

TENSURE

TENSURE

X AXIS – BANKS

Y- AXIS – NO OF YEARS

48

INTERPRETATION :-


compared,

As Y axis indicates No of years and X axis indicates banks.

In above graph the banks are been compared by the duration of

repaying the loan.

In this HDFC and PNB have maximum tensure of 25 years whereas

SBI and ICICI have 15 and 20 years repectively.

The advantage of having long tensure is the monthly installment might

be less than shot tensure but, the rate of interest will 1.50% more than

normal rate of interest.

49

4.4 HDFC V/s ICICI V/s SBI V/s PNB NO OF DAYS FOR

DISBURSEMENT

(LOAN UPTO 50 LAKHS)

BANKS HDFC ICICI SBI PNB

NO OF DAYS FOR

DISBURSEMENT(LOAN

UPTO 50 LAKHS)

20 30 45 25

HDFC ICICI SBI PNB0

5

10

15

20

25

30

35

40

45

No of day for disbursement(loan upto 50 lakhs)

No of day for disbursement(loan upto 50 lakhs)

X AXIS- BANKS

Y AXIS – NO OF DAYS

INTERPRETATION :-

50


compared,

As Y axis indicates No of Days and X axis indicates banks.

In the above graph explain us about the number of days taken for

disbursement of the loan.

As in above table HDFC takes 20 days, ICICI 30 days, SBI 45 Days

whereas PNB 25 days

As a result due to less documentation and loan sanction in 5 mins for

home loan the HFDC is the only bank who takes less days for

disbursement of loan as compared to other four banks.

4.5 HDFC V/s ICICI V/s SBI V/s PNB CUSTOMERS FROM

DIFFERENT LEVEL(CLASS)

51

BANKS LOWER

CLASS(CUSTOMERS)

MIDDLE

CLASS(CUSTOMERS)

HIGHER

CLASS(CUSTOMERS)

HDFC 1% 19% 30%

ICICI 5% 25% 20%

SBI 30% 15% 5%

PNB 15% 25% 10%

HDFC ICICI SBI PNB0%

5%

10%

15%

20%

25%

30%

Lower classmiddle classHigher class

X AXIS- BANKS

Y AXIS – PERCENTAGE OF LOWER, MIDDLE & HIGHER LEVEL

INTERPRETATION :-

52


compared,


As in the above graph it explains that the percent of customer that are

attracted towards these banks

As the customer attracts towards the banks because of their rate of

interest, in this case SBI had done a good job where they manage to

attract 30% out of 50% in lower level but in case other banks they do

not because of their high rate of interest.

In case of higher level of customer the people do get attracted, as they

have high interest in home loan in other hand their FD rate are higher

too.

4.6 HDFC V/s ICICI V/s SBI V/s PNB DEFAULTERS AND

REGULAR PAYEE

BANKS DEFAULTERS REGULAR PAYEE

53

HDFC 15% 35%

ICICI 25% 25%

SBI 5% 45%

PNB 16% 34%

HDFC ICICI SBI PNB0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

DefaulterRegular Payee

X AXIS- BANKS

Y AXIS – PERCENATGE OF PAYEE AND DEFAULTERS

INTERPRETATION :-


compared,

54


As in the above graph it explains the percentage of defaulter and

regular payee.

The defaulter takes place when the person Is not able to pay the

regular EMI’s in that case ICICI have the most of 25 % because of high

rate of interest

Wherea the regular payee are those who pay the EMI’s regularly in that

case SBI are at 5% because of low interest and long tensure.

4.7 PERCEPTION OF SERVICE AND PRODUCT INTRODUCED BY HDFC

V/s ICICI V/s PNB V/s SBI

55

HDFC ICICI SBI PNB

LUCRATIVE 80% 70% 80% 65%

NOT LUCRATIVE 10% 15% 15% 20%

NO IDEA 5% 15% 15% 15%

.

LUCRATIVE NOT LUCRATIVE NO IDEA0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

HDFCICICISBIPNB

X AXIS – PERCEPTION

Y AXIS – PERCENTAGE

56

INTERPRETATION :-


compared,

As Y axis indicates percentage and X axis perception.

HDFC and SBI have 80 % and ICICI 70%, PNB 65% are lucrative.

ICICI and SBI have 15% and HDFC 10 PNB 20 % not lucrative .

SBI, ICICI and PNB are 15% whereas HDFC 5%of no idea.

57

4.8 THINGS THAT ATTRACTED CUSTOMERS TO HDFC

IMAGE SERVICE PRODUCT0%

10%

20%

30%

40%

50%

60%

70%

PERCENTAGE

IMAGE SERVICE PRODUCT

PERCENTAGE 65% 25% 10%

INTERPRETATION:-

In the above graph x axis is image, service and product and on Y axis

percentage.

In which people are attracted to image as its have a competitive image

in the market whereas service and the new products or the existing

product are 25 % and 10%

In this graph they come out with a firm percentage where they are

strong to be in this competitive market .

58

4.9 PRODUCT USED BY CUSTOMER

SAVING A/C

FIXED

DEPOSIT

A/C

CURRENT A

/C

DEMAT A

/C

LOANS

INSURANCE

MUTUAL F

UNDS0%

5%

10%

15%

20%

25%

HDFC

HDFC

NAME HDFC(%)

SAVING A/C 9%

FIXED DEPOSIT A/C 30%

CURRENT A/C 5%

DEMAT A/C 14%

LOAN 25%

INSURANCE 10%

MUTAUL FUNDS 5%

X AXIS – PRODUCT OF HDFC

Y AXIS - PERCENTAGE

59

INTERPRETATION

In the above graph x axis is accounts hdfc have and Y axis indicates

percentage

In this people are most attracted towards the high rated fixed deposit

and low rate home loan interest.

Whereas in this fixed deposit is the most of 30% and loan is 25%

Saving, mutual fund and insurance are 9%,5% 10%.

60

4.10 BEST SERVICE OF HDFC BANK

SERVICE HDFC

FIXED DEPOSITE 45%

CURRENT A/C 15%

DEMAT A/C 15%

INSURANCE 12%

LOANS 13%

FIXED DE-POSITE A/C

CURRENT A/C DEMAT A/C INSURANCE LOANS0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

HDFC

HDFC

X AXIS – SERVICE OF HDFC

Y AXIS - PERCENTAGE

INTERPRETATION

In this graph X axis is types of service and Y axis percentage

Fixed deposit is 45%, Current A/c is 15 %,

61

Whereas Demat insurance and loans are 15%,15%,12%,13%

respectively.

4.11 BEST EXTRA SERVICE OF HDFC BANK

SERVICE HDFC (%)

ATM 45%

NET BANKING 30%

PHONE BANKING 25%

BILL PAYMENT 20%

MOBILE BANKING 10%

ATM

NET BANKING

PHONE BANKING

BILL PAYM

ENT

MOBILE BANKING

0%5%

10%15%20%25%30%35%40%45%

HDFC

HDFC

X AXIS – EXTRA SERVICE BY HDFC

Y AXIS - PERCENTAGE

INTERPRETATION:

In above graph X axis is extra service provided by bank and Y axis

percentage

The above graph explain us that what customer use the most and find

it safe for transaction.

62

In this ATM,NET BANKING,PHONE BANKING are used most with

45%,30%,25% respectively

BILL payment and mobile banking is 20 and 10 %

4.12 RELATIONSHIP PERCENTAGE OF HDFC BANK

GOOD AVERAGE POOR0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

HDFC

HDFC

RATING HDFC

GOOD 81%

AVERAGE 15%

POOR 4%

INTERPRETATION

In the above graph x axis is the rating and y axis is percentage.

As this graph explain us the relationship status of bank with customers.

In which good is 81%, average is 15% and poor is 4 %.

63

4.13 AWARENESS OF NEW PRODUCTS AND SERVICE

RATING HDFC

YES 85%

NO 15%

YES NO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

HDFC

HDFC

INTERPRETATION

In this above graph on x axis is rating and y axis is percentage

This graph explains us that the customer of HDFC are aware or not

In this yes is 85% and no is 15%

64

4.14 SATISFIED WITH THE DEALING OF BANK

YES NO TO SOME EXTEND0%

10%

20%

30%

40%

50%

60%

70%

80%

HDFC

HDFC

RATING HDFC

YES 75%

NO 10%

TO SOME EXTEND 15%

INTERPRETATION:

In the above graph x axis is rating and y axis percentage.

In this it explain us about dealing with the bank

In which yes is 75 % and no is 10%.

To some extend is 15%

65

CHAPTER 5

5.1 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 way but they do their own survey of optimum loans; same

is the case with banks & 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 & guided by sound ethical values & 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

66

5.2 BIBLOGRAPHY

MAGAZINE :-

Banking Finance, Editor R.G Agarwal and Associates march 2013.

NEWSPAPER :-

Business standard.

Economic Times.

WEBSITES :-

www.hdfc.com

www.HDFCBANK.com

www.personalfn.com

www.PNB.com

www.SBI.com

www.ICICI.com

Search engine- www.google.com

http://www.google.com/

http://www.SBI.com/

http://www.PNB.com/

http://www.personalfn.com/

http://www.HDFCBANK.com/

http://www.hdfc.com/

67

CHAPTER 6

ANNEXURE

QUESTIONNARE

Name: ………………………………………………………………………..

Address: ……………………………………………………………………..

Contact No :® ………………( O)……………… (M)………………………

City: ………...............

Pin: ………………….

State: ……………………….

(1) For how long you have been a part of HDFC?

Less than 6 Months

Less than 2 years

Less than 1 year

More than 2 years

(2) What are the reasons that attract you to be a customer of HDFC

Bank?

Its image

Its service

Product

All the above

68

(3) Are you aware of the different service offered by the HDFC Bank?

Yes

No

(4) Loan tenure you preffered in HDFC?

5

10

15

20

(5) Your age Sir/Madam ?

21-31

32-42

43-52

52-60

(6) Which of these products are you using?

Savings A/c

Fixed Deposit A/c

Current A/c

Demats A/c

Credit Card

Insurance

Mutal funds

Loans

(7) Do you find HDFC as a fast home loan disbursement Bank

Yes

No

Don’t know

69

(8) Which service of the bank would the rate the best?

Fixed Deposit A/c

Current A/c

Demat A/c

Credit Card

Insurance

Mutal funds

Loans

(9) Do you know about the extra service provided by the bank?

Yes

No

(10)Which of the following extra services of the bank would you like to go

for it?

ATM

Net Banking

Phone banking

Bill Payment

Mobile Banking

None of the above

All of these

10 What are the perception regarding the service of the bank?

Good

Average

Poor

70

11 Are you satisfied with the dealing of the bank official?

Yes

No

To some extend

12 Any problem you are facing regarding with the bank?

Timeless

Customer relationship

Others

Rate of interest

13 How likely are you to recommend bank services to friends?

Very likely

Some what likely

Neither likely nor likely

Very likely

14 How will you rate HDFC Bank in Maintaining good relationship with

customers?

Good

Average

Poor

comparison home loan schemes of hdfc with other banks

Data & Analytics