A PROJECT REPORT ON

“A study of HDFC bank home loan”

Logo of RGI / AKS (As the case may be)

A report submitted in partial fulfillment of the requirements

of

THE BBA THREE YEARS DEGREE PROGRAM

(2011-14)

Submitted By Guided By(Bhupendra singh) (Pramod dwivedi)(Roll no) (Designation)

Management of Business Administration

Rajiv Gandhi college Satna (M.P.)

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CERTIFICATE

This is to certify that the project report on “A study of HDFC bank home loan” has been completed by “Bhupendra singh” student of BBA VI semester {Finance }group. In partial

fulfillment of the requirement of the BBA three year degree

course.

Signature (Pramod duvedhi)

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DECLARATION

I Bhupendra singh S/o Ramprasad singh student of

Bachelor of Business Administration (BBA), Rajiv Gandhi

College here by declare that this project report under the title “A study of HDFC bank home loan” is my original work.

All the information and data given in the report are authentic

to the best of my knowledge and have been obtained from

reliable sources.

Signature :

Student’s Name :

Specialisation : FinanEnrollment No : A-11-:6000

Roll No:

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ACKNOWLEDGEMENT

No gain without is a common saying. Gratitude is the hardest of emotion to express and often does not find adequate word to covery.therefore this project report is not an effort is not an effort of single person but is a contributory effort of many hands and brains. So I would like to thanks all those who have helped me directly or indirectly during my survey project.

With an ineffable sense of gratitude I take this opportunity to express my deep sense of ineptness to Mr.Anant Soni (director),Rajiv Gandhi Group of institutions for providing infrastrcture to carry out this project work.

I am extremely grateful to Dr. G.S.panday (principle) for giving me the opportunity to carry out this project.

I am also thankful to Mr.pramod diwedhi for his keen interest,persistent encouragement and unitizing guidance thoughts the development of the project,it has been my great privilege to work under his inspriing and provoking guidance.

I am also thankful to many people who timely helped me but paucity of space is restricting me from mentioning their names and finally I also than to all my friendswho were constantly supporting me during the whole project.

BHUPENDRA SINGH

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INTRODUCTION O TO HOME LOAN HDFC BANK

Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all gathering funds little by afford ones dream. Home is one of the things that everyone one wants to own home is a shelter of person where the rests and feel comfortable many banks providing home loan whether commercial banks of financial institutes to the people who wants to have a home.

HDFC (housing development finance corporation)home loan India have been serving the people for around there decades and providing various housing loan according to their varied needs at attractive &reasonable interest rate 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 attracts consumers to wants them the more customer friendly attitude of things banks

In view of acute housing shortage in country and keeping in mind the social –economic role of commercial banks in the present times the RBI advised banks to encourage the flow of credit for housing finance.

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HDFC also provides with home improvement loan for internal and external repairs and other structural improvement like painting, waterproofing, plumbing and electric work. Tilting and flooring grills and aluminum windows HDFC of renovation (100% for existing customers)

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COMPANI PROFILE;-

HDFC Bank Ltd is a major Indian financial service company based in mumbai.the bank is a publicly

The bank has three primary business segments namely banking wholesale banking and treasury .the retail banking segment service retail customer through a branch network and other delivery channels this segment raises deposits from customers and makes loan and provides other service with the help of specialist product group to such customer . The wholesale banking segment provides loans non-fund facilities and transaction service to corporate public sector unit’s government bodies, financial institutions and medium scale enterprises. The treasury segment includes net interest earnings on investments portfolio of the bank the bank’s ATM network can be accessed by all domestic and international visa /master card /visa electron/maestro, plus /cirrus and American express credit/charge cardholders. The bank shares are listed on the Bombay stock exchange limited and the national stock exchange of India Ltd.

The banks American depository shares (ADS) are limited on the new York stock exchange (NYSE) and the banks global depository receipts (GDR) are listed on Luxembourg stock exchange HDFC bank Ltd are incorporated on August 30,1994 by housing development finance corporation Ltd in the year 1994 housing

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development finance corporation Ltd was amongst the first to receive an in principle approval from the reserve bank of India to set up a bank in the private sector or part of the RBIs liberalization of the Indian banking industry HDFC bank commenced operations as a scheduled commercial bank in January 1995 in the NSCCL.in the year 1997 the launched retail investment advisory service in the year 1998 they launched their first retail lending product loan against shares in the year 1999 the bank launched online real-time Net banking in February 2000 times bank Ltd owned by bennett,coleman and climes group amalgamated with the bank Ltd this was the first merger of two private banks in India ,the bank was the first to launch an international debit card in association with VISN (Visa Electron) in the year 2001,they started their credit card business, Also they become the first private sector bank to be authorized by the central board of direct taxes (CBDT) or well as the RBI to accept direct tax.

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BOARD OFDIRECTORs

Detail of board of director in terms of their directorships /memberships in committees of public companies as on march 31.2014 are as under.

Reno. Name of directors Category* No. of directorship**

No. of committees***

1. Mr. Deepak Spartech

Non-executive chairman

7 5 2

2. Mr.B.S.mehta Independent 13 9 43. Mr.D.M.sukthankar Independent 3 2 14. Mr.D.N.Ghosh Independent 4 - -5. Dr.S.A.Dave Independent 8 6 26. Dr.Ram S.Tameja Independent 9 6 17. Mr.N.M.munjee Independent 11 8 58. Dr.mimal jalan Independent - - -9. Dr.J.J.Irani Independent 3 1 -10. Mr.V.srinivasa

RanganExecutive director

12 8 -

11. Ms.Renu sud karma

Managing director

13 5 3

12. Mr.kekim.minstry Vice chairman &chef executive officer

13 10 4

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To explain home loan procedure-

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The procedure involves in the disbursement of home loan by any bank entails the following steps.

1. Home loan application form is first submitted by the customer covering all details.

2. Checklist of requirement is requested to 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 or submitted.

The following diagram indicates the loan procedure at the-

Customer

Branch manager

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Loan department

Legal opinion

Valuation and technical

Regional officer

For large borrowsBank

To study and understand the documents involved in the home loan scheme –

1 passport / driving license / voter id card/PAN card / ration card/ employer id entity card/school living certificate/birth certificate.

2 copy of bank statement for the last 6 month 3 copy of latest credit card statement. 4 passport size photograph

Branch manager

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5 signature verification by your bankers 6 proof of residence- Ration card PAN card Passport 7 income proof – Dated salary certificate with latest from 16 8 banking history banks – Bank statements of latest 2 months/3month bank passbook

Eligibility criteria for home loan-

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How much an application can borrow home loan range from Rs.11 Lake to Rs.50 Lake your repayment period can vary from 1 year to 20 year depending upon your capacity to repay?

Eligibility;-Age-minimum you should be at least 21 year of age. Maximum 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 year of service. (With a minimum of 1 year in the current job)

Businesspersons/self employed professional; you must have an established business or professional practice of not less than 3 year 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 then Re. 1.20 Lake for businesspersons/self-employed professionals.

1. Individual who are salaried or self employed professional, 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 HUF lay down condition to who is co-applicant ,as co-owners to the property should necessarily be co-applicant. Income of the

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co-owners can be clubbed to gather to get higher loan eligibility minors are not eligible to become co-0wner .as also friend and relatives only blood relatives are eligible to take a property jointly

3 The minimum age for the applicant and the co-applicant to become eligible for the commencement loan is 23 years and co-applicant can be of 18 years of age if there 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 year or the retirement age whichever is earlier

Some of the acceptable relationship where loan clubbing is possible.

Income clubbing of co applicants

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Combinations

Husband-wife

Parent-son

Parent-daughter

Brother-brother

Brother-sister

Sister-sister

Parent-minor child

Income clubbing

Yes

Yes(if only son)

Yes(if only child)

Yes

No

No

Not eligible for loan.

. Interest rate –

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Without doubt the most important parameters to factors into home loan calculation the interest rates may vary from institution to institution and generally range from at 10.25-12.75% to around 11.5% repayment is in the form of Emirs (Equity monthly payment will be less The two kinds of interest rates available to a customer are 1-fixed interest rate 2-floating interest rate

HDFC bank home loan floating interest rate . A-up to 30 lacks 10.50% B-30 to 75 lacks 10.75% C-Above75 lacks 11%

HDFC home loan fixed interest rate. A-up to 30 lacks 12.25% B-30 to 75 lacks 12.50% C-Above 75 lacks 12.75%

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Repayment schemes

HDFC which has been in the home segment since 1977 has also introduced a host of new features to its home loan portfolio.

HDFC offers flexible repayment scheme. Keeping in mind the fact that each individual has unique problem requiring unique solutions

HDFC has developed various repayment options like.

Step up repayment facility

Flexible loan installment

Balloon repayment scheme. where the payment in the initial years is less and the later years are more.

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RESEARCH METHODOLOGY OF THE STUDY

Research methodology

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Research methodology is a way to systematically show the research problem it may be understood as a science of studying how research is done scientifically. it is necessary for the researcher to know not only the research methods but also the methodology.

This section includes the methodology which includes the research design objective of study scope of study along with research methodology and limitation of study etc.

To know the customers perceptions about home loan of HDFC housing development finance corporation Ltd.

To study the satisfaction level of customer about home loans.

To study the problem faced by customers in obtaining the home loan.

To make comparative study of disbursement of home loan by commercial banks the study shall be conducted in the manner enumerated below.

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1-RESEARCH DESIGN-:

This project is based on exploratory study as well descriptive study it was an customer satisfaction level was studies to suggest new methods to improve the service of HDFC Ltd. In providing home loan and it was descriptive study when detail study was made for comparison of disbursement of home loan by commercial banks.

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2-SOURCE OF DATA-:

To fulfill the information need of the study the data is collected from primary as well as secondary source.

A-PRIMARY DATA-:

I decided primary data collection method because our study nature dose not permit to apply observational method in survey, approach we had selected a questionnaire method for taking a customer view because it is feasible from the point of view of our subject &survey purpose we conducted 100 sample of survey in our project to judge the satisfaction level of customer which took home loan.

SAMPLE SIZE

For the questionnaire I have taken the sample size of 100 customer of HDFC Ltd.

B-SECONDARY SOURCE-:

It was collected from internal source. the secondary data was collected on the basis of organizational file official records, news paper, magazines management books preserved information in the company database and website of the company.

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3-SAMPLING-:

Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe a sample is representative of the universe selected from study.

SAMPLE SIZE-:

Large sample gives reliable result than small sample however, it is not feasible to target entire population or even a substantial portion to achieve a reliable result so this repeat selecting the sample to study is known as sample size, hence for my project my sample size was 100.

SAMPLING TECHNIQUE-:

Random sampling technique was used in the survey conducted.

TOOL OF ANALYSIS-:

Data has been presented with the help of bar graph, pie graph, charts, line graphs etc.

PLAN ANALYSIS

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Tables were used for thee analysis is of the collected data the data is also neatly presented with thhheeeee help of graphs and pie charts percentage and averages have also been used to represent data clearly and effectively.

4-DATA COLLECTION INSTRUMENT DEVELOPMENT

The mode of collection of data will be based on survey method and field activity primary data collection will base on personal interview’s have prepared the questionnaire according to the necessity of the data to be collected.

5-LIMITATION OF THHE STUDY

This study also includes some limitation which have been discussed as follows:

1. the sample size of 100 customers and 4 banks might prove a limitation because of difficulty in generalization of results.

2. To collect the data from various banks was quite difficult due to non-cooperation of some banks the proved to be major limitation the study.

3. Lack of data was also the other limitation of thee study as some of banks do not have proper data on topic.

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4. There was limitation of time to conduct such a big survey in limited available time.

5. Ignorance and reluctant attitude of customer was also a major limitation in this study.

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REVIEW OF LITERATURE

SUMMARY-:

After going through previous studies of home loan I come to conclude that.

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There is growth of home loan after 2001

Home loan have an inverse relation with interest rate Ice. when interest rate law thee demand of home loan increase(OJHA 1987)

People are going more towards home loan then provide mortgage insurance (be stain 2008)

Government taking various steps to encourage people to go toward home loans.(have kop 2000)

SBI provide a very low interest rate on home loan as compared to other banks SBI may 2012.

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