commercial banking-hdfc housing finance

8/8/2019 Commercial Banking-hdfc Housing Finance

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WH AT are NBFCs ??

NBFC is a company registered under the CompaniesAct, 1956

Engaged in the business of loans and advances,acquisition of shares/stock/bonds/debentures/securities

The RBI (Amendment) Act, 1997 defines NBFC asan institution or company whose principlebusiness is to accept deposits under any schemeor arrangement or in any other manner, and tolend in any manner.


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S alient Features of NBFCsNBFC s are allowed to accept/renew public deposits for a min.period of 12 months and maximum period of 60 months

NBFC s cant offer interest rates higher than the ceiling rateprescribed by R BI from time to time. Present ceiling is 11% p.a.

NBFC s cannot offer gifts/incentives or any other additionalbenefit to the depositors

The deposits with NBFC s are not insured and repayment of deposits are not guaranteed by R BI

M inimum net owned funds of Rs.200 lacs & R BI registration arethe entry point norms

NBFC s have to maintain 10 % to 15% of their deposits in liquidassets


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H ousing Finance Regulations - N H B

N o housing finance institution which is a companyshall commence or carry on the business of ahousing finance institution without -

(a) obtaining a certificate of registration issued bythe NHB and

(b) having the net owned fund of Rs. 25 lacs or suchother higher amount, as the N ational H ousingB ank may, by notification, specify.Every such housing finance institution shall makean application for registration to the N ationalH ousing B ank in such form as may be specified bythe N ational H ousing B ank


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HD FC H ousing Finance

Incorporated in 1977H ousing Development F inancial C orporationB ank was incorporated in 1994

It was set up with an aim to provide housingfinance and specialized banking services in acustomer-friendly yet professionalenvironment

Subsidiaries and Associate

Companies -

HD

FC B ank, H DFC mutual funds, H DFC standard life

insurance, H DFC Investments, H DFC sales, etc.


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HD FC Features and Benefits

Repayment of home loans

Availment of other loans

Lowest interest rates

Availability of fixed and floating structures

Change of home loan interest rate

Repayment schemes


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Loans offered by HD FCType Of Loan HD FC ICICI

H ome Loan

H ome Improvement Loan

H ome Extension Loan X

Short term B ridging Loan X

Loan for Professionals

(non residential premises)

Land Purchase loans

H ome Equity Loan X


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H ome LoanHD FC ICICI

Interest Rate 1 st yr. - 8.25%, there on - 9.25% 1 st yr. - 8.25%, there on - 9.25%

ProcessingFees

0.5% of the loan amount, capped at Rs.10,000

H igher of 0.5% of loan amount or Rs.2,000

Loan Tenure 1 to 20 years 1 to 20 years

Funding Up to 85% of property value Up to 80% of property value

GuarantorReq.

N ot Required N ot Required

PrepaymentFees

2% of amount being prepaid 2% of amount being prepaid

Eligibility You must be at least 21 years of agewhen the loan is sanctioned.The loan must terminate before 65

years of age or before retirement,whichever is earlier.

You must be employed or self-employed with a regular source of income.

You must be at least 21 years of agewhen the loan is sanctioned.The loan must terminate before 65

years of age or before retirement,whichever is earlier.

You must be employed or self-employed with a regular source of income.


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H ome Loan

HD FC ICICI

Applicant Individual or jointly Individual or jointly

Documents Identity proof (Voter card/Drivinglicense/ Indian Passport and aphotograph)Residence Proof (Ration card/latest

electricity bill/telephone bill/creditcard bill)Last 6 months bank statementsProcessing fee chequeForm 16 and Latest Salary (Only for

Salaried)Last 3 years Profit /Loss B alance

Sheet, IT returns and educationalqualification certificates (Only for Self Employed)

Identity proof (Voter card/Drivinglicense/ Indian Passport and aphotograph)Residence Proof (Ration card/latest

electricity bill/telephone bill/creditcard bill)Last 6 months bank statementsProcessing fee chequeForm 16 and Latest S alary (Only for

Salaried)Last 3 years Profit /Loss B alance

Sheet, IT returns and educationalqualification certificates (Only for Self Employed)


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Purpose External repairs Tiling and flooring Internal and external painting Plumbing and electrical work W aterproofing and roofing Grills and aluminium windows W aterproofing on terrace

Construction of underground/overhead water tank Paving of compound wall (with stone/tile/etc.) B ore well


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HD FC ICICI

Interest Rate 1 st yr. - 8.25%, there on - 9.25% 1 st yr. - 8.25%, there on - 9.25%

M ax. Loan Existing C ustomer - 100%N ew Customer - 85%

80%

ProcessingFees 1% of loan amt. Data unavailable

Term 15 years 20 years


F unding 100% for existing customer

85% for new customer

80% of cost of improvement

S ecurity Existing C ustomer - Extension of mortgage on property alreadyfinanced. N ew C ustomer - M ortgageon entire property improved.

Data unavailable


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H ome Improvement LoanS alaried Customers S elf Employed Professionals S elf Employed Businessman

Application form withphotograph



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

Latest Salary-slipEducation Qualifications

Certificate and Proof of business

existence

Education QualificationsCertificate and Proof of business

existence

Form 16Last 3 years Income Tax returns

(self and business)B usiness profile

Last 6 months bank statementsLast 3 years Profit /Loss and

B alance Sheet

Last 3 years Income Tax returns

Last 3 years Profit /Loss andB alance Sheet

Processing fee chequeLast 6 months bank statements

Last 6 months bank statements(self and business)

Processing fee cheque Processing fee cheque


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Land Purchase Loans

Land loans give an opportunity for individualcustomer to purchase a residential plot of landto do self- construction.

Thus, customer can invest now in a plot of land & build in future.

Land Loans can be availed by Resident Indianwhether Salaried or Self-Employed.


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Land Purchase Loan

Particulars HD FC ICICI

Loan Amount- 1) direct allotment2) F irst purchase from resale plots

Up to 85% of cost of landUp to 70% of cost of land

Up to 80% of cost of land

Loan for construction on land Up to 85% of cost of landand construction

Up to 80% of cost of land and construction

Rate of Interest 1 st yr. - 8.25%, there on -9.25%

1st yr. - 8.25%, there on- 9.25%

Repayment Tenure 15 years 20 years

Documentation Same Same


Processing Fees 1% of loan + service taxesand cess

0.5% of loan or 2000whichever is higher

Security M ortgage of Property

financed

M ortgage of Property

financed


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Office Premises Loans

A self-employed businessman or professionalneeds a permanent address to set up hisbusiness.

These loans cover purchase, construction,extension and improvement of officepremises.

The loan may also be packaged to include theestimated renovation expenses.


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H ome Extension Loans

Purpose :H DFC H ome Extension Loan makes it convenient for the borrower to extendor add space to their home. B e it an additional room, a larger bathroom, oreven enclosing an open balcony.Maximum loan:

85% of the cost of extensionMaximum Term:

20 years subject to your retirement ageApplicant and Co- Applicant to the loan:H ome Loans can be applied for either individually or jointly.

Fees:1% of the loan amount applied plus applicable service taxes and cess.


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H ome Extension LoansS ecurity -

Existing customer Extension of the mortgage already created on the property

financed and/or other security as may be required by H DFC .N ew C ustomer S ecurity for the loan is a mortgage on the entire property

being improved and/or other security as may be required byH DFC .

Interest - 8.25% for the 1 st year 9.25% for the rest


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S hort Term Bridging Loans

S hort-Term B ridging loan makes you realise your dream of buying a bigger and better home and gives you time to sell yourexisting property to pay off the loan.

This is a short term loan to help customers with the interimperiod between the sale of your old home and the purchase of anew home. You can take the loan even if you are an existingcustomer of H DFC .


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S hort Term Bridging Loans

Maximum loan:

90% of cost of new propertyMaximum Term:2 yearsApplicant and Co - Applicant to the loan:H ome Loans can be applied for either individually or jointly. Proposed owners

of the property, will have to be co-applicants. H owever, the co-applicants neednot be co-owners.Interest Rates: 8.25% for the 1 st year 9.25% for the rest

Fees

0.50% of the loan amount plus applicable service tax and cess


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H ome Equity LoansH DFC H ome Equity Loans helps you encash the present market value of the property bytaking a loan by mortgaging the property.

Purpose : Loan can be for any purpose. H owever, the funds should not be used forspeculation or any illegal purposes. C ustomers have benefited by taking loans to meetthe following funding requirements -EducationM arriage Expenses

M edical ExpensesProperty:

Residential N on Residential

- Should be Fully C onstructed- Should be a F reehold property having a clear and marketable title.

Fees:

0.5% of the loan amount plus applicable service tax and cess.


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H ome Equity Loans

Maximum Loan Existing Customers

- B alance of 60% of the market value and present loan outstanding N ew Customers

- 50% of the market value of the property (including the cost of the land) S ubject to

- M inimum M arket Value of the property being Rs.5,00,000 for Residential propertyand Rs.7.50 Lacs for N on Residential Property- Repayment C apacity of the customer

Interest Rate - 12.5% to 12.75%

Maximum TermProperty Type Repayment Option No. of Years

Residential E MI B ased 15

N on Residential E MI B ased 15

Residential and N on

Residential

S imple Interest 2


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TH ANK YOU