dream home solution project ppt

8/4/2019 Dream Home Solution Project PPT

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INDEX1. Factors Affecting.

2. Property Aspects3. Financial & other aspects.4. Property Title proof.

5. Negative Aspects.6. Financial Highlight of HFI’s.7. Financial Highlights of Bank’s.

8. Operational Highlights.9. Shareholder wealth.10. NPA Comparison.

11. HFI’S V/S BANKS.



Factors

affectingpropertydecision



Price - A price obtained for a specific property under a specific

transaction which also includes property price, stamp duty and

registration, society charges, brokerage and others.

Locality - a surrounding or nearby region.

Transportation - movement of people and goods from one

location to another.

Infrastructure - The basic physical systems of a country's or

community's population, including roads, utilities, water, sewage,

etc.

Goodwill of builder - good will means an intangible asset valued

according to the advantage or reputation a business a person has

acquired over and above period or time.

Availability of properties.

Property Aspects



Financial

andother

aspects



Financial and other aspects

1. individual budget.

2. ROI & loan period

3. EMI (equitable monthly installments)4. Individual eligibility

5. Documentation

6. Services (ecs – chq. – standing inst.)7. Sanction and disbursement time.



INDIVIDUALBUDGET

1.Own contribution.

2.Stamp Duty and Registration

3.Brokerage.

4.Society transfer charges.5.Parking charges if needed.

6.Advance maintenance if required by

builders.7.Processing fees.



Individual eligibility

1. 15% - 20 % Should be owned

contribution.

2. 50% - 60 % Loan can be sanction on total

income.

3. 75% - 85% of agreement value can be

sanction.

4. Stamp duty and registration amount can

be added to loan agreement.



Rate of interest.

Fixed - The rate of interest is fixed for

entire loan period taken by individual.

Floating - It depends on the Market

conditions, Bank and regulatory body like

RBI.

Partly - It depends on the Individual bank to

provide new offers like 2yrs fixed and

rest tenure floating.



ICICI BANK HDFC BANK

Category ROI (%) Category ROI (%)

Upto Rs. 30 Lacs 8.75% Upto Rs. 30 Lacs 8.75%

Rs. 30 Lacs – Rs.50 Lacs 9.00% Rs. 30 Lacs – Rs.50 Lacs 9.50%

Above Rs. 50 Lacs 9.50%

Loan Schemes 1st Year 2nd and 3rd year After 3rd Year

SBI HI-FIVE Loan 8.00% (p.a.) 9.00% (p.a.) 9.00% (p.a.)

Loan Amount upto Rs. 5 Lacs Fixed interest Floating Interest Rates OR Floating Interest Rates

OR

10.50% (p.a.) Fixed ROI 10.50% (p.a.) Fixed ROI

SBI Easy Home Loan 8.00% (p.a.) 8.50% (p.a.) 9.00% (p.a.)

Loan Amount upto Rs. 50 Lacs Fixed interest Fixed Interest Rate Floating Interest Rate OR

10.50% (p.a.) Fixed ROI

SBI Advantage Home Loan 8.00% (p.a.) 9.00% (p.a.) 10.00% (p.a.)

Loan Amount Above Rs. 50 Lacs Fixed interest Fixed Interest Rates Floating Interest Rate OR

10.50% (p.a.) Fixed ROI



• Confirmation of Income :-

• If you are a salaried person, please provide two recent consecutive pay slips or a

copy of your employment contract or a letter from your employer.

• If you are self-employed, please provide copies of your last two FinancialAccounts as prepared by your accountant.

• Appointment Letter, Salary Certificate, Retainer ship Agreement, if appointed as a

consultant

• FORM 16 issued by the employer in your name.

• Last three years income tax returns duly filed and certified by the Income Tax

Authorities• Similar Document -separately for each co-applicant.

• Employment Proof :-

• Identity card issued by your employer, Visiting card ,

• Age Proof :-

• Passport , Voter's ID card PAN card, Ration card, Employer's Identity card, School

leaving certificate , Birth certificate• Residence Proof :-

• Ration card, Passport, PAN card, Rent agreement, if you are staying currently on

rent, Bank Pass book.

• 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 Bank

Documentation



• Original Sale agreement with Builder/Developer duly registered,

Registration receipt

• Land documents indicating ownership, e.g.- Photocopies of title deeds,

if applicable• A certificate by the legal advisor of the builder to the effect that the

builder has a good reputation and it is free from encumbrance and other

charges.

• A certificate from builder's Chartered Accountant certifying that the

builder has not mortgaged the property anywhere else.• Certified true copy of approved plan.

• Copies of receipts of payments made to builder/developer.

• Allotment letter, Possession letter

• Mortgage deed if the Bank opts for a registered mortgage.

• No Objection Certificate from the developer, society or developmentauthority as applicable

• Personal Guarantees, if applicable.

• In case of alternate or additional security, documents for the same

depending upon the security details.

• For self-construction: Approved plans and clearance certificates along

Property Title Proof



Negative aspects1. Area.

2. Profession.

3. Builders.

4. Credit rating. (personal loan – credit card –

home loan)

5. Employed with certain industries like BPO,Proprietor ship or Pvt. ltd Companies.

6. Income.( As per KYC norms)

7. Field investigation.

8. Property verification – Pagadi system, SRA,Mahada.

9. Property should be approved by regularity

authority like Mahada, MMC & CIDCO.



Negative areas – Refers to the areas onwhich banks / financial institutions do not

give loans. Examples are given below.

For e.g. Mira Road (some part) ,

Mumbra, Diva,

Ulhashnagar.Gaonthan properties.

Slum locality.

Minimum sq. feet area.

Forest land.

Area



Profession

Profession

Banks have conservative approach towards giving

loans to lawyer, Builders, Doctor, Politician. Sole

Proprietor and entertainment industry, Anti social

aliments and criminal activities e.g. Local Gangs.

Builders

Small builders.

Black listed builders.



Certain income are not considered by

bank / Financial institution while

calculating the eligibility of individual. It is

not considered as income.

Income from shares and securities.Rental Income if not declared in IT.

Income from Mutual fund

Interest on fixed deposit.

Income which is not declared in Form 16.

Cash salary.

Family income should not be considered. Any Fluctuating income.

Income not considered

Rupees in



-2008-09

Rupees inCrores

COMPANY HDFC LIC HF DEWAN HF

INCOME 11,018.00 2,912.00 694.00

EXPENSES & CHARGES 7,798.00 2,186.00 569.00NPBT 3,220.00 726.00 125.00

NPAT 2,283.00 532.00 92.00

OWNED FUND 13,137.00 2,234.00 514.00

LOAN FUND 83,856.00 25,421.00 5,876.00

CURRENT LIAB. & PROV. 4,663.00 1,728.00 117.00

DEFERRED TAX LIABILITY - - 5.00

TOAL LIABILITIES 101,656.00 29,383.00 6,511.00

FIEXD ASSETS (NET) 203.00 32.00 50.00

INVESTMENTS 10,469.00 1,129.00 109.00

LOANS 85,198.00 28,086.00 5,807.00

NET CURRENTS ASSETS, LIABILITES & ADV. 5,571.00 135.00 546.00

- -

TOTAL ASSETS 101,656.00 29,383.00 6,511.00

Rupees in



-2008-09

Rupees inCrores

COMPANY SBI ICICI BOB

INCOME 76,479.00 39,210.00 17,849.00

EXPENSES & CHARGES 67,358.00 35,452.00 15,622.00NPBT 9,121.00 5,117.00 2,227.00

NPAT 5,059.00 3,758.00 1,116.00

OWNED FUND 57,948.00 49,883.00 12,836.00

LOAN FUND 795,787.00 285,672.00 198,033.00

CURRENT LIAB. & PROV. 110,697.00 43,746.00 16,538.00

DEFERRED TAX LIABILITY - - -

TOAL LIABILITIES 964,432.00 379,301.00 227,407.00

FIEXD ASSETS (NET) 3,574.00 3,802.00 2,310.00

INVESTMENTS 275,954.00 103,058.00 52,446.00

LOANS 542,503.00 218,311.00 143,986.00

NET CURRENTS ASSETS, LIABILITES & ADV. 142,401.00 54,130.00 28,665.00

TOTAL ASSETS 964,432.00 379,301.00 227,407.00



HFI'S

APPROVALS 49,166.00 8,186.00 2,698.00

DiSBURSEMENTS 39,650.00 7,351.00 2,266.00

% DISBURSED TO APPROVALS 81.00 90.00 84.00

Operational Highlights APPROVALS, HDFC

DISBURSEMENTS,

HDFC

APPROVALS, LIC HF

DISBURSEMENTS,

LIC HF APPROVALS,

DEWAN HF DISBURSEMENTS,DEWAN HF

-

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

50,000.00

HDFC LIC HF DEWAN HF

APPROVALS

IDSBURSEMENTS

SHARE HOLDERS WEALTH



-

50 .00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

E A R N IN G S P E R

S H A R E ( R S )

B O O K V A L U E P E R

S H A R E ( R S )

D IV I D EN T R A T E ( % ) -

F V R S 1 0 .

D IV I DE N D P A Y O U T

R AT IO ( % )

H D F C

LIC HF

D E W A N HF

HFI'S HDFC LIC HF DEWAN HF

EARNINGS PER SHARE (RS) 80.10 60.34 15.15

BOOK VALUE PER SHARE (RS) 462.00 263.00 71.00

DIVIDENT RATE (%) - FV RS 10. 300.00 130.00 25.00

DIVIDEND PAYOUT RATIO (%) 43.50 24.39 19.31

SHARE HOLDERS WEALTH



N P A

N P A % , H D F

N P A % , L IC H

N P A % , D E W

1 . 4 7

-

0 . 2 0

0 . 4 0

0 . 6 0

0 . 8 0

1 . 0 0

1 . 2 0

1 . 4 0

1 . 6 0

H D F C L IC H F D E W A N H F

N P A

HFI'S NPA% BANKS NPA %

HDFC 0.81 % SBI 2.84

LIC HF 1.07 % ICICI 4.32

DEWAN HF 1.47 % BOB 1.27

N P A

N P A % , S B

N P A % , IC I

N P A % , B O

-

0 . 5 01 . 0 0

1 . 5 0

2 . 0 0

2 . 5 0

3 . 0 0

3 . 5 0

4 . 0 0

4 . 5 0

5 . 0 0

S B I I C IC I B O B

N P A

NPA COMPARISION



BANKS

• Banks.

1. Multiple products.2. No personalized service.

3. Lengthy procedures.

4. Structured and proper documentation.

5. Less competitive after sales services.

6. Low competition.

7. Quota system.

8. Aggressive ROI.

9. Limited branch network.

10. Working hrs. call center or Help line.

11. Multiple schemes – ROI - Terms.

12. Proper recovery approach.13. Less aggressive marketing strategy.

14. Comparatively less processing

charges.

• Housing Finance

1. Specialization2. Personalized service.

3. Fast approvals.

4. Structured and proper

documentation.

5. Good after sales services.

6. Competition.

7. No Quota system.

8. Competitive ROI.

9. Large branch network.

10. 24 x 7 call center or Help line.

11. Multiple schemes – ROI - Terms.12. Proper recovery approach.

13. Aggressive marketing strategy.

14. High processing charges.



COMMON

PROBLMESOF

BORROWERS

b d b



1 Rejection at the first stage

Strange but true, many of the home loan applications do not pass even the first test.

They are out rightly rejected due to. It could be the age criteria, income criteria, proper

documents not being submitted, the bank not being able to verify your details properly,

not passing the field investigations conducted by the bank and many more.

most common Home Loan problems faced byborrowers in India

2. Processing fee not refunded

With every application form for home loans, banks require about 0.25% to 1% of the loan amount to be submitted as the processing fees. This processing fees is

generally NOT REFUNDABLE.

3. Desired loan not sanctioned

The loan amount sanctioned is based mostly on repayment capacity of the borrower.

Many things come into picture, when the bank decides how much home loan a person

can get. The monthly income, financial history, other unpaid loans with the borrower,

past repayment record, credit card usage history if any, bounced checks, average

balance with the banks, continuity in present employment, total years in employment,

nature of employment etc



4. The interest rate dilemma

Whether to go for a fixed rate or floating rate interest for home loans is a dilemma

which almost every home loan borrower faces.

5. Difference in property valuation

The bank has its own experts for legal, technical and financial appraisal of the property

in question. It evaluates the property on its own established parameters and assigns a

value to it. This value can be significantly lower than the price you quoted for the

property.

6. The down payment

Banks require the borrower to fund at least 10% to 20% (varying from bank to bank) of

the entire loan amount as the down payment for the home loan. This amount has to be

deposited before the disbursal of the home loan. In the absence of such down payment

the bank will refuse home loan to the borrower.

7. Title deeds and NOC Documentation Problems

The title deeds and NOC documents have to be furnished in the bank's format.

Borrowers who don't provide such documents in proper format, will ruin the entire

exercise and won't get any home loan. To avoid falling into such uncomfortable

situation, enquire about all the documents required by banks beforehand and take

necessary steps to get them ready within the stipulated time frame.



All I ask for is an opportunityto prove that money

doesn't buy happiness.""All the happiness youever find lies in you."

Conclusion

The above mentioned problems are verycommon, but can be easily avoided if the

borrower follows proper procedure, preparesadequately before applying and takes care of

correct documentation

dream home solution project ppt

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