home loans (1).docx

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A

PROJECT REPORT

HOME LOANS

Submitted in the partial fulfillment for the award of

Master’s Degree in Business Administration

Submitted to : Submitted BY;

MR. SACHIN SABHARWA !"N#AN A!!ARWA

R$ N$

%&&&'(%()'*

1



ACKNOWLEDEMENT

+hi, ma-in of an/ report 0all, for 0ontribution and 0ooperation from man/other, be,ide, the indi1idual alone. It i, the re,ult of meti0ulou, effort put in b/

man/ mind, that 0ontribute to the final report ,ubmi,,ion and thi, wor- too i,

not an e20eption.

+hu,3 one of the be,t part, of writin thi, report i, the opportunit/ to than-

tho,e who ha1e 0ontributed toward, it.

4ir,t and foremo,t3 I would li-e to ta-e the opportunit/ to e2pre,, m/ ,in0ere

ratitude to MR.SACHIN. 4or hi, 1alued in,iht,3 ,ue,tion, and 0ontinuou,,upport3 without whi0h thi, pro5e0t would not ha1e rea0hed ,u00e,,ful

0ompletion.

I would li-e to than- all the re,pondent, who too- time out of their bu,/

,0hedule to fill out the 6ue,tionnaire, and ha1e intera0tion with me. All the

abo1e3 made 0on,iderable 0ontribution to whi0h the,e few line, 0an hardl/ do

5u,ti0e to their patien0e and enerou, ,upport.

a,t but not the lea,t3 I would li-e to than- m/ friend,.

2



AN INTRODUCTION

Housing is a !rimar" #uman need ne$t in im!ortan%e on&" to 'ood and

%&ot#ing( A 'irst !riorit" 'or a "oungster )#o *egins &i'e is t#ere'ore to !&an

'or a #ouse( T#is ta+es !re%eden%e o,er ot#er #ouse#o&d e$!enditure and

%reature needs( Housing- #o)e,er- is a ma.or e$!enditure and %annot *e

'unded out o' a 'ami&"/s norma& mont#&" in%ome or sa,ings( T#e

!ros!e%ti,e #omeo)ner must &oo+ 'or a &oan su*stantia& in si0e and so

stru%tured t#at #e %an re!a" it o,er a &onger !eriod o' time- in man" %ases

a&most one/s entire )or+ing &i'e(

oan i, offered to a borrower to pur0ha,e or build a new hou,e on the ba,i, of

hi,7her eliibilit/ and the ban-8, lendin rule,. $ne of the important ba,i0

human need, i, ,helter. Hou,e i, the ultimate dream of e1er/ middle 0la,,

famil/. !o1ernment a1e en0ouraement for hou,e finan0e ,ub,idiarie, b/

offerin number of ta2 0on0e,,ion, to indi1idual,. With the o1erall

en0ouraement i1en to thi, ,e0tor3 a number of pla/er, entered in hou,in

finan0e.

$ne of the mo,t important benefit, of ta-in a home loan i, the intere,t rate

that i, allowed on the home loan. 4i2ed and 1ariable intere,t rate option, are

al,o a1ailable for home loan,. Man/ finan0ier, al,o offer home impro1ement

loan, at the ,ame intere,t rate a, the/ offer the home loan,.

3



ABO1T THE REPORT

T2TLE O3 THE ST1D45

+he pre,ent ,tud/ i, titled a, 9A R$#C+ R$R+ $N H$M $ANS<. +he

,tud/ i, made with ,pe0ial referen0e to ==ban-==bran0h

OBJECT26E O3 THE ST1D45

+he followin are the ob5e0ti1e of the pre,ent ,tud/:

'. +he main ob5e0ti1e of doin thi, pro5e0t i, to ,tud/ the 0orporate 0ulture

&. +o anal/>e 1ariou, method, of operatin a home loan

(. +o ain -nowlede about 1ariou, home loan produ0t,

?. +o -now 1ariou, rate, a1ailable while pro1idin home loan.

Data and Met#odo&og"5

4or the purpo,e of the pre,ent ,tud/ both primar/ and Se0ondar/ data were

u,ed.

rimar/ data 0olle0ted from ban- 1i,it,3 inter1iewin with

,taff et0. ,e0ondar/ data 0olle0ted from boo-,3 web,ite, and new,paper.

4



A THEORET2CAL 62EW7

HOME LOAN

+he ,e0tion * @b of the Ban-in Reulation A0t ')?) define, Ban-in a,3

A00eptin for the purpo,e of lendin or in1e,tment of depo,it, of mone/ from

the publi03 repa/able on demand or otherwi,e and withdrawable b/ 0he6ue3

draft or otherwi,e.

A home loan i, a 0redit to a 0on,umer for the pur0ha,e or tran,formation of

the pri1ate immo1able propert/ he own, or aim, to a06uire ,e0ured either b/ a

mortae on immo1able propert/ or b/ a ,uret/ 0ommonl/ u,ed in a Member

State for that purpo,e.

A home loan re6uire, /ou to plede /our home a, the lender8, ,e0urit/ for

repa/ment of /our loan. +he lender aree, to hold the title or deed to /our

propert/ until /ou ha1e paid ba0- /our loan plu, intere,t. In ,imple word, a

home loan i, a fund or the loan whi0h the bu/er ha, ta-en from an/ finan0ial

in,titution or ban- to pur0ha,e a new home at an areed rate of intere,t ,pe0ified

durin the 0ontra0t.Home loan i, the finan0e borrowed from a ban- or finan0ial

in,titution to bu/ or modif/ a re,idential real e,tate propert/. An/ Re,ident or

Nonre,ident indi1idual who i, plannin to bu/ a hou,e in India 0an appl/ for a

Home loan. If /ou ha1e de0ided to bu/ a propert/ in the near future /ou 0an

e1en appl/ for a loan before /ou ,ele0t /our propert/.

5



SCHEMES O3 HOME LOANS:

89 Home &oans 'or %onstru%tion o' ne) #ouse : '&at- !ur%#ase o' o&d #ouse:

'&at- et%5

Initiall/3 lender, appro1ed a home loan for famil/7own re,iden0e onl/. After

ainin e2perien0e and more importantl/ to be 0ompetiti1e3 lender, now

appro1e loan, e1en when the appli0ant ha, more than one hou,e or

flat7apartment. +oda/ there i, no eneral re,tri0tion on the number of hou,e,

owned b/ an indi1idual. +he onl/ ,tipulation i, that the home loan fund, ,hould

not be u,ed for 0ommer0ial purpo,e,.

;9 Home e$tension &oan5

+he,e loan, are i1en for e2pandin or e2tendin an e2i,tin home. +he,e are

,ome of the in,tan0e, for whi0h /ou 0ould ta-e an 2ten,ion oan.

• +o 0on,tru0t an additional room or floor b/ ettin additional 4SI ranted.

• ",in rill, or ,lidin window, to en0lo,e the bal0on/.

• Con,tru0tion of a arden or arae in the buildin 1i0init/.

<9 Home im!ro,ement &oan5

Home impro1ement loan, for repair, 7reno1ation in0ludin waterproof3

plumbin3 0ompound wall3 diin of well7tubewell3 floorin7tilin3 addition,

li-e builtin 0upboard, 7,hel1e,3 internal repair, in0ludin repla0in

door,7window,3 et0. A loan for pur0ha,e of hou,ehold furniture in0ludin ,pa0e

,a1in furniture @-it0hen ra0-,3 0upboard,3 et0 ma/ al,o be ,an0tioned a, a

6



home impro1ement loan.

=9 Home &oan 'or !ur%#ase o' #ousing site5

Here aain3 initiall/ man/ ban-, did not appro1e ,u0h loan,. Howe1er3 mar-et

for0e, ha1e now made thi, a uni1er,al feature of the home loan mar-et.

Howe1er3 0are ha, been ta-en in ,tru0turin the ,0heme, for a1oidin finan0in

for pur0ha,e of land for ,pe0ulati1e lation purpo,e,.

>9 Home e?uit" &oans5

A home e6uit/ loan @,ometime, abbre1iated H i, a t/pe of loan in whi0h the

borrower u,e, the e6uit/ in their home a, 0ollateral. +he,e loan, are ,ometime,

u,eful to help finan0e ma5or home repair,3 medi0al bill, or 0ollee edu0ation. A

home e6uit/ loan 0reate, a lien aain,t the borrower8, hou,e3 and redu0e, a0tual

home e6uit/.

7



SCHEMES OF

HOME

LOAN

Home loans forconstruction of new

house !at

Homee"tension loan

Homeim#ro$e

mentloan

Home oan or#urchase ofhousin% site

Homee&uit'loans

Rate of Interest:

The lender decides the rate of interest chargeable on the home

loan, taking the following into consideration:

() Cost of fun*s+

The cost of funds is dierent for each lender, de!ending u!on

"



the mi# of liabilities, liabilit$%raising costs &based on the image

of the bank in the market' and with dierent costs in dierent

maturit$ buckets(

,) Tenor of the loan+

)enerall$, banks ha*e borrowed funds with maturities u! to 5

$ears, and some ca!ital fund sur!luses, which ma$ be a*ailable

for allocation to home loan assets(

-) Ca#ital allocation costs+

+anks are reuired to allocate ca!ital based on the risk weight

of each class of asset taken on to the balance sheet(

.) Costs of a*ministerin% the s#eci/c scheme)

0) Swa# costs1 other fun*in% costs

2) 3ro/t mar%in

4) Tenure of the loan is an im#ortant factor in #ricin% the

loan

5) S#ecial consi*erations li6e %rou# len*in%1 which ma'

7rin% *own the a*ministration or monitorin% costs)

Com#etition+

The lender ma$ ha*e to le*$ interest at market rates, e*en if

his cost !lus margin is higher than com!etition(

-



SECURIT8+

1' . sim!le registered mortgage or euitable mortgage on the

!ro!ert$ acuired out of the loan is taken as securit$( This is the

!rimar$ securit$ for the loan(

2' /n case of 0ats of a grou! housing societ$, tri!arilite

agreement shall be entered into(

3' /n case of ointl$ owned !ro!erties, it should be ensured that

all the co%owners and co % .!!licants e#ecute the documents(

Home is t#e *asi% and t#e most e$!ensi,e ne%essit" t#at a man #as to

'u&'i& in #is &i'e( Wit# an in%rease in !ri%es and t#e redu%tion in

!ur%#asing !o)er- a man %annot a%%umu&ate #uge 'unds at a time( So-

in order to 'u&'i& its *asi% ne%essit"- a man #as to go 'or a #ome &oan( As

t#e re!a"ment o' #ome &oan %om!rises o' a &arge !ortion o' interest

rates- Home &oan interest rates o''ered *" ma.or *an+s in Home &oan

segment( Sear%# 'or Home Loans @@

Ban+ Name Home &oan interest rates

1

https://www.bankbazaar.com/home-loan-interest-rate.html#get-quote

https://www.bankbazaar.com/home-loan-interest-rate.html#get-quote



2C2C2 Ban+ Home &oan

( to 8(8>

SB2 Home &oan

(> to (>>

HD3C Home &oan

( to (

PNB Housing 3inan%e Limited Home &oan(> to 88(

L2C Housing Home &oan

( to (

3edera& Ban+ Home Loan

(> to 8(<>

DH3L Home Loan

( to 8;(

2ndia*u&&s Home &oan

( to 8(F

A$is Ban+ Home &oan

(> to 88(>

11

https://www.bankbazaar.com/icici-home-loan.html

https://www.bankbazaar.com/sbi-home-loan.html

https://www.bankbazaar.com/hdfc-home-loan.html

https://www.bankbazaar.com/pnb-housing-finance-home-loan.html

https://www.bankbazaar.com/lic-home-loan.html

https://www.bankbazaar.com/federal-bank-home-loan.html

https://www.bankbazaar.com/dhfl-home-loan.html

https://www.bankbazaar.com/indiabulls-home-loan.html

https://www.bankbazaar.com/axis-home-loan.html





















T#ere'ore- t#ese are t#e Home &oan interest rates o''ered *" di''erent *an+s to

its %ustomers( T#e norma& range o' Home &oan interest rates are 'rom 8(8

to 8;(>( 2n t#is ra%e- o,ernment *an+s a&ong )it# some !ri,ate num*ers

and 'inan%ia& institutions are running in a 'ront !ane& *" o''ering &o)estinterest rates on #ome &oans G 8(8( T#e 'ront runners are SB2- 2C2C2-

Standard %#artered *an+ and L2C( SB2 and 2C2C2 *an+ #as gi,en a !ri,i&ege

to its )omen *orro)ers *" !ro,iding t#em a #ome &oan interest rate at

8(8 )#i%# is (> &esser t#an t#e #ome &oan interest rate !ro,ided to t#e

ma&e *orro)ers( So- )omen are going to *e *ene'ited )it# t#is re,o&ution in

#ome &oan interest rate and t#is )i&& en%ourage )omen to !ut a #and 'or

*u"ing #er o)n #ouse(

Ban+Ba0aar 'a%i&itates "ou to %om!are t#e #ome &oan interest rates o''ered *"

di''erent *an+s and t#en to ta+e t#e most im!ortant de%ision o' "our &i'e(A'ter %om!aring t#e interest rates o''ered *" di''erent *an+s- "ou %an a&so

%a&%u&ate "our EM2 *ased u!on t#at *" .ust entering 'e) !arti%u&ars in t#e

EM2 %a&%u&ator !ro,ided *" t#e Ban+Ba0aar( T#is %a&%u&ation )i&& #e&! "ou

de%ide t#e &oan amount t#at "ou %an easi&" !a" o'' and t#e &oan tenure in

)#i%# "ou %an easi&" !a" o'' t#e de*t )it#out %om!romising on "our ot#er

need" e$!enses(

+efore going for a home loan, $ou must be careful enough to see

the nature of its interest rates( There are two t$!es of interest

rates i(e( #ed interest rates and 0oating interest rates( ou ha*e

to carefull$ choose between the two( i#ed home loan interest

rates will remain #ed all o*er the tenure and 0oating home loan

interest rate will kee! on changing with the change in the base

rate( +ut, the 0oating home loan interest rates are chea!er than

the #ed home loan interest rates on the rst front

Step By Step Guide To Home LoanProcess In India

In India, the developing real estate market offers a wide range of residential projects

suitable for all income group populace from studio apartments to luxury villas, budget

12



homes to high rise sky scrapers in metro, tier II and III cities. As the housing rent

increases in skyrocketing speed, it is advisable to invest your income in a residential

property which will save your monthly rentals in addition to serving as an investment.

Nowadays there are government and private banks in India offering home loans for

home buyers by lending up to 80% of the total cost. If you are a first time home buyer

looking for loan, here is the step by step guide to the process of obtaining a home

loan:-

After choosing the bank for home loan, prepare your payment as banks offer only

80% of the total cost. Also check your loan eligibility and keep all the necessary

home loan related documents ready.

1. Home loan Application

You can avail the application form from any bank office or download it from online.

Duly fill the form and attach copies of the loan related documents such as ID proof,

Address proof, Age proof, Income proof, proof of educational details and

employment, bank balance statement etc., if you apply online, you can get instant

provisional approval within 24 hours.

Send the form and the non refundable processing fee to the bank for loan approvalprocess. The processing fee differs from one bank to another from 0.25% to 0.50%

13



which is usually non refundable in case if the loan is denied. This is used for the loan

processing procedure and maintenance of your loan.

2. Discussion with the Bank

After submission of application form, the applicant will be called by the bank for a

face to face discussion to evaluate the papers and decide on the payment capacity

and to decide on the loan amount etc. This discussion meet happen in 2 or 3 days

after the submission of application form. At this point, the applicant can also bring the

original documents of all the proofs submitted earlier.

3. Bank Investigation

A field investigation will be conducted to check all the information stated in the

application form and qualified bank employee or a verification agent will investigate

and verify all the details. The representatives will visit the office and residence of the

applicant to verify the details. In the process, the references mentioned by the

applicant will also be checked and cross verified.

After this, the bank will verify the applicant’s repayment capacity and if it is not

satisfactory, the loan will be rejected. It will check the ability of the borrower to repay

the loan amount with interest on time along with the previous loan transactions track

record. If the bank finds that the applicant can repay, then the loan will be

sanctioned.

4. Offer Letter for the loan sanction

Once the loan is sanctioned, the bank will send an offer letter to the applicant with

details regarding the home loan such as loan amount sanctioned, interest rate for the

loan, type of interest selected: fixed or floating interest rates, loan tenure, mode of

loan repayment, special scheme or offer if applicable and the general terms and

conditions of the home loan approved.

If you are satisfied with all the norms, then you can provide an acceptance letter with

your signature to the bank to acknowledge the sanction.

5. Submission of legal documents

These days, the bank requires all the legal documents related to the property for

availing the loan. The bank will perform legal check and these documents will be

detained by the bank till the applicant repays the loan amount.

14



6. Technical Valuation of property

Along with the legal check, the bank will also perform a technical valuation of the

property. For under construction projects, the bank will check the quality and

progress of the construction work along with the locality valuation to evaluate the

value of the property. The bank has qualified valuators to assess the property value

under established parameters. This is performed to ensure a clear title and if the

property is viable and meets the valuation standards.

7. Registration and Signing

After all the financial and technical valuations, the home loan registration process

begins. The legal loan documents will be prepared on stamp papers by the bank

lawyer. The loan agreement must be signed and submitted back to the bank along

with post dated cheques.

8. Loan Disbursal

After registration, the bank will disburse the loan amount based on the agreed terms

of disbursal either as a full payment or partial payment mode in stages. Usually for

ready possession of the property, the amount will be disbursed in full.

The above mentioned home loan process is applicable in most banks though

there might be changes according to individual bank policies. This long home

loan process is now simplified with the instant home loan process available

online. You can try ay one based on your convenience and requirements.

15



(E9UATED MONTHL8 INSTALLMENTS :EMI;+ The monthl$

re!a$ment b$ the a!!licant is related to his cash 0ow( There

is an element of interest and of !rinci!al in the monthl$

!a$ments( The interest !a$able o*er the !eriod of the loan is

calculated and added to the loan amount to arri*e at the

total !a$able amount (this amount, di*ide b$ the total

number of monthl$ installments is called euated monthl$

installment &/'(

CHAR<ES IN HOME LOAN+ .cuiring a 8ome 9oan doesnt

onl$ in*ol*e the cost of home loan interest rates but it also

includes other charges ; fee accom!an$ing at *arious

stages of taking the 8ome loan( ou must consider all these

charges while com!aring the cost structure across banks(

ollowing is the detailed fee structure incurred b$ banks at

dierent loan stages:

= 3rocessin% Char%e+

/t is a fee !a$able at the time of submitting the loan

a!!lication to the bank which is normall$ non%refundable(

16



The fee ranges between (5 !er cent and 1 !er cent of the

loan amount(

= A*ministrati$e Fee+

/t is a fee incurred b$ banks at the time of loan sanction<

there are few banks who ha*e remo*ed this fee so $ou must

check it with all the banks(

= 3re#a'ment 3enalties+

=hen the borrower !re%!a$s the loan before the loan tenure,banks charge a !enalt$ which usuall$ *aries between 1 !er

cent and 2 !er cent of the !re%!aid amount(

= Le%al Char%es+

+anks also incur some charges from the customer for legal

and technical *erication of the !ro!ert$(

= Dela'e* #a'ment Char%es+

=hen there is a dela$ in the !a$ment of $our /, banks

charge a late !a$ment fee from the borrower which normall$

ranges from 2> to 3> of the /(

= Che&ue 7ounce char%es+

+anks charge between ?s( 25 and ?s( 5 for e*er$

bounced cheue towards the loan !a$ment because of lack

of funds in $our account(

17



3OINTS CONSIDERED >8 >AN? @HILE <RANTIN<

HOME LOAN+

The borrowers eligibilit$ of getting a home loan

de!end u!on his@her re!a$ment ca!acit$ ; the banks

establish this re!a$ment ca!acit$ b$ considering *arious

factors such

income, s!ouseAs income, age, number of de!endants

ualications ,assets, liabilities, stabilit$ and continuit$ of

occu!ation and sa*ings histor$(

Example of icci bank:

1"



Bocuments ?euired for 8ome 9oan

Getting a home loan from ICICI Bank is easy and quick. e keep the paper!ork and other formalities

to a minimum. Proof of your identity" address and income are some of the key documents that are

required to #e su#mitted for ICICI Bank home loan.

$oreo%er" if you are an e&isting customer of ICICI Bank" you can no! en'oy the #enefit of reduced

documentation.

1-



Bocuments Calaried

Celf

m!lo$ed

Drofessiona

l

Celf m!lo$ed Eon

Drofessional

.!!lication form with !hotogra!h dul$ signed

/dentit$, residence and age !roof

9ast 6 months bank statements

9ast 3 months Calar$%sli!s

Drocessing fee cheue

orm 16 @ /ncome Ta# ?eturns

Droof of business e#istence

+usiness !role

ducation ualication certicate and !roof of

business e#istence

9ast 3 $ears /ncome Ta# ?eturns with

com!utation of /ncome

9ast 3 $ears F. Fertied @ .udited +alance

Cheet and Drot ; 9oss .ccount

2



et Attra%ti,e Rates on 2C2C2 Ban+ Home Loans( A!!&" On&ine No

) and et 2nstant e7A!!ro,a&

'!et liibilit/ &De0ide to Appl/

(Complete Appli0ation ?"pload Do0ument,

4ill form to et a 0u,tomi>ed 6uote in,tantl/. @Spe0if/ loan amount E loan

tenure on the ne2t pae

Cit/ in whi0h propert/ i, ba,ed

urpo,e of loan

•

Where do /ou li1e 0urrentl/F

Date of Birth DD MM YYYY

+/pe of emplo/ment

• I want to in0lude Coappli0ant in0ome to in0rea,e m/ eliibilit/

• I de0lare that the information I ha1e pro1ided abo1e i, a00urate and

0omplete to the be,t of m/ -nowlede. I authori>e ICICI Ban- E it,

repre,entati1e, to 0all or ,m, me with referen0e to m/ loan appli0ation.•

21

Bhu#anesh! ar



• G ro1i,ional appro1al ,ub5e0t to +erm, E Condition,

oan, are the ,ole di,0retion of ICICI Ban- td. Di,0laimer +erm, E 0ondition,

IM3ORTANT 3OINTERS IN HOME LOAN+

= Increase 'our Loan eli%i7ilit'

= Cre*it Histor'+

our chances of getting a home loan are increased if $ou

ha*e a good credit histor$ which is known b$ banks b$

checking the borrowers Fibil score( Eow it is *er$ hard to get

a loan from another bank when $ou alread$ ha*e a bad debt

with one bank(

= Clu77in% of income+

our eligibilit$ to take a home loan will augment when $ou

club $our income with $our s!ouses income, bank in this

case will calculate $our eligibilit$ on the basis of the clubbed

income of both the a!!licants( ou can club incomes of

s!ouse, children ; !arents sta$ing with $ou and ha*ing

regular income(

= Enhance 'our loan tenure+ 9onger is the loan tenure,

lower will be the /s which further increases the re!a$ment

ca!acit$ of the borrower ; in turn enhances the loan

eligibilit$(

= Ste#u# Loan+

22

https://loans.icicibank.com/disclaimer.html

https://loans.icicibank.com/tnc.pdf

https://loans.icicibank.com/disclaimer.html

https://loans.icicibank.com/tnc.pdf



/n this t$!e of loan /As remain low in the beginning ;

increase graduall$ as and when the borrowers s!ending

!ower increases( Therefore lower /As in the initial $ears

enhances the borrowers abilit$ to !a$ ; further increases

the loan eligibilit$

= Increase the *own #a'ment+

ou must know that in a home loan bank nances onl$ "5 to

-> for the !ro!ert$ ; the rest amount has to be funded b$

the borrower( ou should increase the down !a$ment if $ou

ha*e more than reuired amount which will mitigate $our

debt considerabl$(

TAB >ENEFITS IN HOME LOAN+

3ast recor*+

The home loan borrower eno$s Ta# +enets on both /nterest

!aid ; the Drinci!al re%!aid( Gnder Cection 24&d' of /ncome

Ta#, the deduction of interest !a$able on the home loan is u!

to a ma#imum of ?s( 1, 5,(

Gnder Cection "&c' of /ncome Ta#, Drinci!al amount for the

re!a$ment of loan along with other sa*ings ; in*estments is

eligible for ta# deduction u! to a

a#imum limit of ?s( 1, ,(

Recent chan%es+

23



.ccording to the new !olic$ changes of the direct ta# code

bill introduced in the !arliament in the month of august 21

onl$ u!to ?s 1(5 lakh deduction is allowed on the interest

!aid on the housing loan and there is no deduction a*ailable

on the !rinci!al amount( Co if $our euated monthl$

installment is ?s 1(5 lakh, com!rising interest and !rinci!al

outgo of ?C 75 each, $ou can a*ail deduction of onl$ the

interest(

Conclusion;

The home loan market in /ndia has grown at a ra!id and

alarming rate of o*er 4> o*er the !eriod of the last four

$ears( .nd from the re!orts from some of the industr$

e#!erts, it is e*ident that there is *er$ little chance that

there will be an$ signicant decline in growth rates in the

future( Therefore it becomes im!ortant at this !oint in time

to e#amine the ke$ factors that ha*e been instrumental in

triggering this high growth !eriod( There are se*eral reasons

that can be considered as ha*ing attributed to the growth of

the home loan market( Hn the demand side, the rst and the

most im!ortant factor for the growth has been faster rise in

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incomes as com!ared to !ro!ert$ !rices, thus making

housing more aordable(

ost of the housing nance com!anies in /ndia ha*e

introduced se*eral new home loan !roducts in order to meet

the needs of a wide *ariet$ of customers( The *arious home

loan schemes ha*e their dierent interest rates in the

market( The customer can choose those schemes which he

feels is good for him and ha*e the ca!acit$ to re!a$ it on

that s!ecied time !eriod( /f unwa*ering liabilit$ is what suits

$our !role, then #ed interest rate home loan should be the

natural choice( Hn the other hand,

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