hdfc bank ltd

SPCJ Inst. Of Commerce & Business Economics.

Dr. NEERAJ GUPTA

Krishna Jaiswal (MBA-Summer training)SPCJ Inst. Of Commerce & Business Economics.AGRA

HDFC Home Loans


Mr Deepak Parekh, Chairman, HDFC, and Mr K. M. Mistry, Managing Director

HDFC Home Loans


HDFC Home Loans


Act as you, speak as you feel, do not play false to your own cousines. That is the dharmik way of life. It indeed gives me a great pleasure in acknowledging from the very core of my heart, the efforts of all those who bestowed upon me their love, affection and good wishes while undergoing in my project. I owe my special gratitude to Mr. Vivek Dwivedi (Resident manager) who gave me his precious time to me and suggested me how to proceed in the project. Then I would like to owe the deep gratitude to my group leader Mr. Naveen Sharma (Operation officer) whos valuable guidance and motivational task which electrifies me time to time for proceeding my survey work and completion of my project. I would like to also thank the other members of HDFC Home Loan for their valuable suggestion and time to time guidance in completion of my project. I am indebted to my parents and my faculty members of my college : Director-Dr. Brijesh Ravat & Coordinator- Dr. Neeraj Gupta , SPCJ Inst.Of Commerce & Business Economics, AGRA for their blessings, cooperation and

encouragement. My gratitude towards them is beyond accountabilities. At last but not least, I feel indebted to our almighty god who blessed and enable me to complete the work. I pray to him for greater success on my path.

HDFC Home Loans


The present era is undoubtedly a management era. Management is an important function in any organization. A management is one of the most important fields which are widely used in every stage of life. The effective management can be achieved only by effective management training and developing skill to understand the organizational level this project work is a part of the course of MBA and was done at HDFC Home Loans. This project is prepared on the basis of awareness of HDFC Home Loans in market and understanding the requirement of proper guidance to customers. HDFC offers loans for homes-for buying or constructing your home, refinance a home loan availed from other institutions or even to extend or improve your existing home. This project helps me to better understanding of market and financial products and their benefits. Now I am feeling the great pleasure in delivering this project because of a better skill of handling the situation and customer understanding.

HDFC Home Loans


CONTENTS*Acknowledgements *Preface *Introduction *Features and Benefit *Home Loan Rates *HDFC Fund arrangement*ICICI Home Loans *SBI Home Loans *PNB Home Loans *CANARA Bank Home Loans *AXIS Bank Home Loans *IDBI Bank Home LoansHDFC Home Loans


*LIC Home Loans *HSBC Home Loans

*Recent Experiences in the housing finance :a reference to India *Indian housing finance system *Evolution & Role of National Housing Bank *FM assures financial support to Central Banking *Analysis *Bibliography

HDFC Home Loans


INTRODUCTIONCompany History 1977 - On October 17th HDFC was incorporated as a Public Limited Company. HDFC was promoted by the Industrial Credit and Investment Corporation of India. The company got the certificated of commencement of Business on 3rd December. HDFC provides housing finance in India. The corporation provides long term housing loans mainly to low and middle income individuals and corporate bodies. It has also provided a modest amount of construction finance to housing developers. 1979 - On November HDFC introduced HDFC Certificate of Deposit Scheme. - 5,00,126 shares taken up by subscribers to Memorandum of Association.50,000 shares reserved for International Finance Corporation, Washington and 50,000 shares issued to His Royal Highness The Aga Khan and/or Foundation Aga Khan Switzerland. 3,99,874 shares allotted at par to the public in May-June 1978. 1980 - During the year company introduced Loan Linked Deposit scheme, which encourages small savers to begin a pass book account with HDFC for a minimum of Rs.200 and deposit, as and when funds are available in multiples of Rs. 100. After a period of 3 years, the depositor may withdraw his accumulated deposit which has earned 9% per annum or renew it with HDFC. In either the event, the depositor become eligible for a loan up to 4 times his accumulated savings, subject to normal lending policy of Co. 1981 - During the year, HDFC negotiated for loan under Housing Guarantee Programme under US aid. During the same year company launched another programme named Non-Resident Certificate Deposit Scheme.HDFC Home Loans


1983 - During the year, the corporation issued bonds of face value of Rs. 5000 each for a total amount of Rs.10 crores. 1984 - During the year a second issue of bonds of Rs. 5,000 each for Rs.10 crores was floated by way of public issue of bonds in March 1986. 1985 - During the year on May company launched Home Saving Plan. Under This facility, an individual can borrow for his housing needs at 8.5% per annum provided he completes certain saving requirements before hand. During the year company also introduced HDFC- Cumulative Interest Scheme. - A new agreement was entered into with USAID under which a further sum of U.S. $25 million was borrowed from the U.S. capital market in 1986-87. 1986 - During the period corporation issued, IV & Vth series of bonds for Rs.10 crores and Rs. 5 crores respectively. During the same yearcorporation started offering a new service called Advanced Processing Facility (APF) under which property developers who are undertaking a residential project can finance individuals buying a dwelling unit in their project. - 5,00,000 Rights equity shares issued at par in prop. 1:2. Subsequently, another 5,00,000 No. of equity shares were offered a par for public subscription. 1987

HDFC Home Loans


- During the year HDFC issued its New Corporate Bonds - Series I for Rs. 20 crores. Also VI, VII and VIII series bonds for an aggregate amount of Rs. 20 crores were issued during the year. 1988 - During the year National Housing Bank was set up as an apex body to ensure orderly growth and functioning of housing finance system in India. - Two new facilities viz., the Telescopic Loan Plan and Short Term Bridging Loan were introduced mainly for younger borrowers. - HDFC entered into an arrangement with the Bank of India whereby HDFC was to receive fixed rate counterpart rupee funds in lieu of the USdollars deposited with Bank of India in New York. - The Home Loans Account scheme was to be launched in co-operation with scheduled banks with effect from July 1, 1989. - The Centre for Housing Finance unit proposed to design specific programme contents to suit different purposes and institutions. 1989 - During the year Krditanstalt Fur Wiederauflau of Germany, sactioned A line of credit of DM 25 million to fund loans disbursed by HDFC for low cost housing project directed to economically weaker section households. - Two new types of loans namely, Home Improvement Loans (HIL) and Home Extension Loans (HEL) was launched. 1990 - During November, the company issued 13,77,500 equity shares of Rs.100 each at a premium of Rs.85 per share to the public. And also 72,500 shares were reserved for employees of the company. Simultaneously, the corporation offered 10,00,000 equity shares of Rs. 100 each at a premium of Rs. 75 per share to the then existing shareholders in proportion 1:2. The

HDFC Home Loans


Company allotted 25,00,000 No. of equity shares (both rights and public offer). - The Company negotiated a borrowing of US 100 million from IFC, Washington, in two parts - Part `A', a loan of US $40 million from IFC (W) directly and Part `B', a loan of US $60 million to be syndicated by IFC (W). - To commemorate the beginning of the second decade the HDFC, it was proposed to establish a shelter assistance fund to encourage and support activities related to shelter problems, in general and to the needs of the poorer and economically weak sections in particular. - Forfeiture on 970 No. of equity shares annulled. Issued 14,50,000 No. of equity shares (prem. Rs. 85 per share) to the public and 10,50,000 shares (prem. Rs 75 per share) as rights in December. 1992 - 23,62,500 No. of equity shares allotted on conversion of `B' part of FCD. 1993 - During the year, the Corporation launched a new deposit product Easy Way Savings, a unique product providing households with flexible maturity choice as well as saving profile. - During the year, the Corporation signed a MOU with General Electric Corporation of USA, to promote a new joint venture for understanding the business of Consumer finance. HDFC and General Electric Corporation, have an equity stake of Rs. 15 crores each. 1994 - The Corporation promoted the educational loan facility to provide financial support to students pursuing higher education. - As a joint venture in the GE capital (USA) HDFC promoted a consumer finance company in March for provision of range of financial product.

HDFC Home Loans


- 9,00,000 No. of equity shares of Rs 100 each allotted to ICICI and UTI on private placement basis. - 17,86,400 No. of Equity shares of Rs 10 each issued on private placement basis. Also 50,00,000 Pref. shares were issued to domestic companies. 1995 - During the year, the Corporation undertook to set up its first Overseas branch office in Dubai. - The Corporation was one the promoters of ILFSL along with Central Bank of India and Unit Trust of India. - The Corporation jointly promoted with State Bank of India (SBI) a New housing finance Company under the name of Housing Finance & Promotion Corporation, Ltd. which operate in the eastern and north-eastern regions with its headquarters at Calcutta. - A MOU was signed with Bank Papera Sejhtera, Indonesia on the broad parameters of technical assistance to be provided over a 6 months period. - During the year, the Singapore based property management company Colliers Jardine Holdings Ltd., has entered into a joint venture with HDFC and Infrastructural Leasing and Financial Services Ltd., to introduce consultancy services in real estate. The joint venture will be named Colliers Jardine (India ) Ltd. HDFC and IL&FS will contribute 15% each in the joint venture and the balance 70 per cent will be held by Colliers Jardine Holdings Ltd., or its nominees. - During the year HDFC, has firmed up its plans to enter the insurance industry. The company signed a joint venture agreement with the Standard Life Assurance Co. of UK, to establish an insurance company in the country as soon as insurance industry is opened up for private investment. The joint venture agreement was signed on 11 October. - During the year company issued 50,00,000 - 12.5% Cumulative Redeemable Convertible Preference Shares of Rs.100 each. 1996HDFC Home Loans


- During the year corporation introduced Flexi-Rate Individual Housing Loan. - During March, HDFC launched India'a first captive auto finance company named Maruti Countrywide Auto Financial Services Ltd., with the objective of exclusively financing Maruti Vehicles in India. This is joint venture between DFC, Maruthi Udyog & GE Capital India. - HDFC Developers, Ltd. and HDFC Investments Ltd. are the wholly owned subsidiaries of the Company. 1997 - 50,00,000 Cumulative Redeemable Non-convertible pref. shares redeemed during the year. - Government of Rajasthan, Infrastructure Leasing and Finance Services and Housing Development Finance Corporation have signed a memorandum of understanding in Mumbai to set up Project Development Corporation. - The Housing Development Finance Corporation (HDFC), India's premier housing finance institution, has stepped up its programme to mobilize deposits in Goa, by setting up an organised network of agents as part of its efforts to offer safe and attractive deposit options. - Countrywide Consumer Financial Services (CCFS), a joint venture between Housing Development Finance Corporation (HDFC) and GE Capital Services, USA, proposes to raise Rs.20 crore through issue of nonconvertible debentures on private placement basis. - Housing Development Finance Corporation Ltd. (HDFC) has approached the Life Insurance Corporation (LIC) for a tri-partite venture along with Standard Life of Scotland, to tap the market for pension funds. - The Housing Development Finance Corporation (HDFC) has tied up with the Rajasthan government to set up a new company.

HDFC Home Loans


- Housing Development Finance Corporation (HDFC) has received LAAA, MAAA and A1+ ratings for its bonds, fixed deposits (FDs) and short-term debt instruments respectively from ICRA. - With a 56-per cent share, the Housing Development Finance Corporation (HDFC) is the market leader in housing finance. - International Finance Corporation (IFC) is teaming up with Housing and Development Finance Corporation (HDFC) to create a non-banking finance company which will provide long-term housing mortgages to the middle income market in Bangladesh. - While IFC and HDFC will be founding shareholders in the joint venture, they will also be joined by the Bangladesh Rural Advancement Committee and the Delta Insurance Group, an insurance company, according to the 1997 annual report of IFC which was released on September 22. - The first private sector housing finance company has been established in Bangladesh with the World Bank signing a deal on behalf of InternationalFinance Corporation (IFC) to become an equity partner along it housing Development Finance Corporation (HDFC) in the recently established Delta Brac Housing Finance Company (DBH) of Bangladesh. - The Housing Development Finance Corporation Ltd. (HDFC) has introduced a novel loan facility, betterment fee loans to site owners in revenue layouts within the jurisdiction of Bangalore Mahanagara Palike. 1998 - The Housing Development and Finance Corporation (HDFC) is in talks with an Asian offshore institutional investor for setting up a joint venture company in anticipation of the government opening up the real estate sector for foreign direct investment (FDI). - The Housing Development Corporation (HDFC), one of India's leading housing finance companies, floated its maiden debenture issue through the private placement route on 14th July. 1999HDFC Home Loans


- HDFC will enter into a memorandum of understanding for strategic business collaboration with Chase Manhattan bank. - Housing Development Finance Corporation (HDFC) and Chase Manhattan have entered into an agreement where, in the event of the two funds -India Private Equity Fund and Indocean Financial Holding Ltd. 2000 - The Company and State Bank of India would be entering into a MOU to set up a Credit Information Bureau jointly in technical and financial collaboration with Dun & Bradstreet Information Services India Pvt. Ltd. and Trans Union International Inc. the leading providers of Business and Credit Information services. - The Company has informed that, SLAC have acquired an aggregate of10 lac equity shares from the secondary market. - The Company has acquired an equity holding of 12.5 per cent in IndiaConstruction.com, a B2B construction portal promoted by the Punebased Construction Portal Pvt. Ltd. - HDFC's tie-up with the Palmyrah Workers' Development Society (PWDS), a Tamil Nadu-based NGO has resulted in the formation of the Indian Association of savings and Credit (IASC), an RBI-recognised NBFC. - The Cellular Service provider Orange has tied up with Housing Development Finance Corporation to offer mobile Internet banking to its customers. - Geojit Securities, has struck an alliance with HDFC Bank for providing a payment gateway to internet trading clients. - The Company has opened an office in Kozhikode which is its third office in Kerala.

HDFC Home Loans


- The Company has introduced a home equity loan with a facility to mortgage property to secure loan for children's education, medical expenses and other miscellaneous investments. - The Company has acquired the entire shareholding of Hometrust Housing Finance Company, a 100 per cent subsidiary of Gujarat Ambuja Cements and has also acquired 26 per cent additional stake in Gruh Finance which was held by GACL. - The Company has acquired the housing finance business of Gujarat Ambuja Cement Ltd for a total consideration of Rs. 60 crores. - The Housing Development Finance Corporation and Tata Consultancy Services signed a memorandum of understanding to set up a 50:50 joint venture to offer IT-enabled services overseas. - Crisil has reaffirmed the AAA rating assigned to the company's Rs 1,195crore bond programme. It has also reaffirmed the FAA rating given to the corporation's fixed deposit programme and the P1+ rating assigned to the short-term debt plan. - The Company proposes to capitalise on the huge real estate requirement of MNCs as the latter propose to set up retail chains across the country. - HDFC has acquired two crore shares in Lafarge India representing face value of Rs. 20 crore. - HDFC asset management company is to formally launch its mutual fund schemes from 20th July. - A clutch of financial service firms led by HDFC have joined together and acquired one of the oldest cards on the BSE. - Housing Development Finance Corporation and the State Bank of India are setting up an equal joint venture for credit rating of individuals. - ICICI Ltd and HDFC have hiked their housing loan rates by 50 basis points. - Amalgamation of Hometrust Housing Finance Company Ltd.HDFC Home Loans


- The Credit Rating Information Services of India Ltd has assigned an `AAA' rating to the Rs 1,500-crore bond programme of the company. - VSNL and HDFC have jointly launched online renewal facility for Internet subscription in Mumbai, New Delhi, Calcutta, Chennai, Pune and Bangalore. - ICRA has assigned `LAA' rating to Hudco Rs 1 billion tax-free and Rs 5 billion taxable bonds programme. - Housing loan finance company HDFC Limited targeting the NRIs, launched a portal `HDFC Reality.com' to provide information on real estae properties in and around Bangalore city. - The Insurance Regulatory and Development Authority has granted registration to HDFC Standard Life Insurance, as the first private sector life insrnace company in India. - Mr. Keki Mistry will be the new Managing Director of Housing Development Finance Corpsoration. - The Housing Development Finance Corporation has launched a retail finance scheme, Step Up Repayment Facility, which provides for a higher loan amount. 2001 - The UB group has tied up with Housing Development Finance Corporation (HDFC) and Infrastructure Leasing and Finance Services (IL & FS) to raise Rs.60 crore to part fund the acquisition of Associated Breweries & Distillers (ABD). - HDFC has tied up with the Alireza group of Saudi Arabia and the Jeddah-based Technobuild to provide advisory services to NRIs. - HDFC has decided to acquire the entire equity holding of its subsidiary HDFC Holdings in HDFC BAnk.

HDFC Home Loans


- HDFC has acquired 133,10,000 equity shares in HDFC Bank from HDFC Holdings, a 100 per cent subsidiary of HDFC, through internal transfer. - The Housing Development Finance Corporation has launched its $100million five-year syndicated loan with roadshows beginning in Singapore. 2002 - HDFC Board approves proposal to set up JV with Chubb Global for foray into General Insurance business. - Housing Development Finance Corporation Ltd has on March 20, 2002 allotted 711178 equity shares of Rs 10 each under the Employees Stock Option Scheme (ESOS). -Housing Development Finance Corporation Ltd has informed BSE that the Corporation has purchased 18,00,582 equity shares of Rs 10/- each of GRUH Finance Ltd, representing 6.79% of its paid up equity capital. After the said purchase, the holding of the Corporation in GRUH Finance Ltd aggregates to 1,62,40,604 equity shares of Rs 10/- each, representing 61.29% of its paid up capital. -Housing Development Corporation Ltd has on August 7, 2002 allotted 51378 equity shares of Rs 10 each under the Employees Stock Option Scheme. -RVS Rao reappointed as Executive Director of Housing Development Finance Corporation. 2003 -Housing Development Finance Corporation (HDFC) has asked chairman Deepak Parekh to continue for three more years with effect from March 03. The service of Renu S Karnad, executive director, has also been extended for another five years with effect from March 2003. Besides, the corporation is revising upwards the remuneration package of its top management, including Mr Parekh, managing director KM Mistry and two executive directors Ms Karnad and Mr RVS Rao. The package will be in the range of Rs 80,000 to Rs 4,00,000 per month. At present, Mr Parekh and Mr Mistry receive a salary of Rs 2,00,000 and Rs 1, 75,000 per month, respectively. Mr Rao and Ms Karnad get Rs 1,50,000 per month.HDFC Home Loans


-HDFC divests its entire stake in Spectramind to Wipro -Fox-Pitt, Kelton's (FPK) survey on the Asia's Best Managed Banks identifies Housing Development Finance Corporation (HDFC) as the second best managed financial institution in India and among best in the region -HDFC Asset Management Company (AMC) acquires Zurich Asset Management Company India -Standard Life Assurance Company hikes stake in HDFC to 14.06 % -HDFC Realty becomes Wholly owned Subsidiary of HDFC -HDFC Board approves Arrangement between the Corporation & HDFC Bank wherein HDFC Bank will source housing loans for the Corporation -Allotts Secured Non Convertible Debentures (NCD's) of Rs 1 million each, aggregating to Rs 2500 million on a private placement basis -Divests shares of HDFC AMC to Standard Life Investment Ltd. Consequent to the said sale, the Corporation would hold 50.10% of the total paid up capital of the HDFC AMC and the balance 49.90% would be held by Standard Life Investments Ltd. -Inks loan agreement for $200 million with International Finance Corporation (IFC), the private lending arm of the World Bank -Cuts home loan rates for fixed-rate loans by about 25 basis points across maturities -Alpine International Ltd., a sub-account of Warburg Pincus LLC, divests HDFC's 42,50,582 shares reducing its holding to 4.48% -Share price hits a life time high of Rs 455 -Mr M Narasimham resigns as a Director of the Corporation wef August 20, 2003

HDFC Home Loans


-Allotts 3833 Secured Redeemable Non Convertible Debenture (NCDs) of Rs 1 million each aggregating to Rs 3833 million on a private placement basis. -Unveils its 4th branch in Bangalore at Basaveshwaranagar -Forges alliance with Tally to unveil EDI for Small & Medium Enterprises (SMEs) -Allotted 2833 Secured Redeemable Non Convertible Debenture (NCDs) of Rs 1 million each aggregating to Rs 2833 million on a private placement basis --Tied up with ICICI Bank and SBI for sharing ATM networks -HDFC unveils innovative housing product 2004 -Becomes the first private corporate to raise Rs 1,000 crore debt in a single tranche and in a single option - The Company has received disclosures from Mr. D S Parekh Chariman and Mr Susir Kumar - Company Secretary of their acquisitions. The details are as follows : i) Mr. D S Parekh has on March 02, 2004 acquired 25,000 shares. The mode of acquisition is allotment pursuant to exercise of options vested under ESOS and his shareholding after the said acquisition is 3,00,500 shares amounting to 0.1223% of the voting rights of the company; ii) Mr. Susir Kumar M has on March 02, 2004 acquired 6,800 shares. The mode of acquisition is allotment pursuant to exercise of options vested under ESOS and his shareholding after the said acquisition is 6,800 shares amounting to 0.0028% of the voting rights of the company. -HDFC inaugurated its 16th office in Tamil Nadu and 6th office in Chennai at the southern suburb of Velachery -Capital Research acquires 1.38 pc additional stake in HDFC 2005 -HDFC, Elcot sign pact to promote infotech in TNHDFC Home Loans


-Forbes Group ties up with HDFC to set up media firm -Hudco ties up with Pragati Social Infrastructure & Development Ltd to float new JV -HDFC JV unveils Yellow Pages in Ahemedabad -HDFC and WL Ross team up to invest in Indian corporate turnarounds 2006 -Housing Development Finance Corporation (HDFC) may join hands with Apollo Hospitals to set up two-three super-specialty hospitals in Mumbai. HDFC joins hand with Postal dept on October 10, 2006.

Features & BenefitsHome Loan - Home loans for individuals to purchase (fresh / resale) or construct houses. Application can be made individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges). Home Improvement Loan - HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers). Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan. Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 85% of the cost of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 15 years. Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or Partly Floating. Flexible repayment options to suit your individual needs. Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties do not affect your family's interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise of the life assured.

HDFC Home Loans


This pure risk plan is designed in a way that the cover decreases as you repay your home loan making it a low cost premium insurance plan. *Insurance is the subject matter of solicitation. Automated Repayment of Home loan EMI - You can give us standing instructions to repay your Home Loan EMIs directly from your HDFC Bank Savings Account, thus, saving you the trouble of procuring, signing and tracking post-dated cheques. HDFC also offers In-house scrutiny of Property documents for your complete peace of mind. Customer privileges - If you are an existing HDFC Home Loan customer, you can avail of other loans (such as Personal Loans, Car Loans, Twowheeler Loans and Loan against securities) at lower interest rates.

Different Home Loan BanksLoans provided by different Banks and Housing Finance Companies in India Bank of India - Home Loans STAR HOME LOANS Provides loans to purchase a Plot for construction of a House, to purchase/construct house/flat, as well as for renovation/repair/alteration/addition to house/flat, furnishing of house, Takeover of customer's housing loan extended by other Banks/F.Is /NBFCs at highly flexible and liberal terms and conditions Citibank Standard Home Loan What is the eligibility for salaried individuals? Gross annual income of Rs 1,00,000 or above. 23 years of age and above maximum age of 58 years or retirement age, whichever is higher at the time of loan maturity. Dena Niwas Housing Finance Scheme You can avail of Dena Niwas Home Loan to purchase a plot, construct a house, buy a ready built house or buy one under construction. The loan even helps you build an extension to your existing house or purchase a house thatHDFC Home Loans


is up to 25 years old. Besides you can take this loan for repairs and upgradation, which includes the cost of fixtures, POP works, retiling, fittings etc HSBC Home Loans HSBC Home Loans make it easier for you to move in as soon as possible without putting a strain on your wallet. Features & Benefits Your dream home, a reality Loan Requirement: We offer you loans ranging from Rs. 5 lakhs upto Rs. 3 crore. PNB Housing Loan PNB reaches out to you with fast, friendly and most convenient home loans for: Construction or purchase of house/ flat. Purchase of house/ flat on First Power of Attorney basis from the original allottee. Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat. SBI Housing Loan SBI Housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! 'SBI-Home Loans' Standard Chartered India Home Loans While you decide upon a house that suits your family, let us help you with a home loan that suits your pocket. With not just a low rate of interest, but also an unmatched level of service

HDFC Home Loans

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Home Loan Rates

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HDFC Home Loans

SPCJ Inst. Of Commerce & Business Economics. Axis Bank BHW Home Financ e Bank of Baroda Bank of India Bank of Mahara shtra Bank of Rajast han Canara Bank Cathol ic Syrian Bank Centra l Bank of India Centur ion Bank of Punjab Dena Bank Federa l Bank HDFC ICICI Bank IDBI Bank IDBI Home Financ e Indian Bank Indian Overse as Bank Karnat aka Bank LIC Housin g Financ e Orient al Bank of Commer ce Punjab Nation al Bank Punjab Nation al Housin g Financ e Ltd SBI Bank 10.5 13 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A 15.25 13.5 13.25 13.25 13.25 15 13.25 14.5 13 15 13.5 13.75 14.25 15.5 13.75 N.A 13.25 N.A N.A 13.75 13.25 13 12.5 12.75 4.75 -3 - 2.5 2.75 3 - 3.5 2.5 - 3 3 2.5 - 2.75 N.A N.A -3 - 2.5 2.75 3.5 - 3.75 3.25 4.25 3.25 N.A 2.75 N.A N.A -3.25 - 2.75 -3.25 - 2.25 N.A 1.75 1.75

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HDFC Home Loans

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HDFC Home Loans


HDFC-Fund arrangement

HDFC

India Real Estate Fund
A host of benefits

HDFC's real estate fund typically scouts for large projects and promises several advantages to domestic investors, says Apurva Agarwal India's premier housing finance company, the Housing Development Finance Corporation Ltd, has forayed into the real estate fund business with the launch of 'HDFC Property Fund' in association with the State Bank of India. A trustee company (HDFC Ventures Trustee Company Ltd) and an asset management company (HDFC Venture Capital Ltd) have been incorporated for the fund. This venture capital fund approved by SEBI would invest in equity and equity linked instruments of companies engaged

HDFC Home Loans


primarily in real estate in major cities in India. The fund's initial scheme, called HDFC India Real Estate Fund (HI-REF) is for domestic investors and has a target corpus of Rs 750 crore with a green shoe option of Rs 250 crore. This would be a seven-year close-ended fund which would be privately placed. The scheme would have a minimum contribution of Rs 5 crore per investor and would target banks, insurance companies, corporates and high net worth individuals. To achieve a balanced risk-reward profile, the inaugural scheme, HI-REF will invest in three broad classes of companies: a) Projects which are complete - this would comprise real estate assets which are in use with established, high-quality tenants. Such asset class would typically denote steady income type characteristics. b) Projects in development stage - where the lead-time to commercial deployment is typically between one-three years, and the completed projects subsequently would have contractual offtake arrangements in place. c) Projects in the planning stage - where the lead-time to commercial deployment would be three-six years. These projects would offer the highest amount of return, although with a greater risk. What's in it for investors? An REMF will provide a host of benefits to investors: Liquidity: When an investor invests directly in an individual property, buying and selling proves a complex, time-consuming process. By contrast, an investment in an REMF will be more readily converted into cash as these units will be traded on the stock exchange. Affordability: Real estate has traditionally been a sound investment option but remains limited to only a few as the amount of money required for investing in real estate directly is very high. REMFs will allow common investors to reap benefits of investment in real estate without putting in significant amounts. Tax advantages: In the US, REITs (real estate investment trusts) pay no federal corporate income tax and are legally required to distribute 90 per cent of their income as dividends, thus eliminating double taxation of income. If a similar tax structure is implemented in India, it will prove a win-win situation for both investors and the real estate industry. Professional management: Real estate investment in India is fraught with risks related to documentation, title of property, legal aspects and so on which would be mitigated in this scenario. REMFs would also provide new investment avenues to pension funds, endowment funds, insurance companies, thereby bringing the institutionalHDFC Home Loans


investor into the ambit of the real estate market. This will further boost professionalism in the real estate sector. How will these property funds work? Property funds typically scout for large projects, either residential or commercial. "These need not necessarily be in metros. We are prepared to invest even in smaller towns," explains a spokesperson for HDFC. If it's a new project, in the development stage, the fund asks the entrepreneur to float a special purpose vehicle - which is a separate entity - for the project. The fund then puts up money for an equity stake in the entity, typically amounting to 15-25 per cent of the project cost. The builder and the landowner will be the other partners in the project and will be expected to bring in their share of the equity, which can be in kind. The builder could, for instance, fund the construction costs and this would be treated as his share of equity. These funds, given their structure, are interested in making only equity and not debt investments in projects. The entrepreneur is free to raise debt to fund the remaining part of the cost. Once the property is developed and sold to its new owners, the profits would be shared between the property fund, the builder and the landowner in proportion to their original equity stakes. Property funds may also pick up stakes in already developed residential or commercial space, with the intention of earning a regular rental income. Commercial or office space leased out to IT, BPO firms and MNCs seem to be preferred targets, as these promise safe, stable returns. As the market evolves, specialised property funds could also arrive on the scene. Pantaloon's venture fund, for instance, plans to focus only on malls and commercial space leased out to retailers. The real estate sector also now requires a professional outlook and a more systematic way of conducting its affairs. One of the biggest hindrances to investment in the sector is lack of professionals and transparency in real estate development. The industry does have a few big developers who are professional in their approach, but they do not constitute more than one per cent of the all-India market. The introduction of real estate mutual funds (REMF) would address this issue as well. An REMF is an investment vehicle, which buys, develops, manages and sells real estate assets. Its investments may also include shares/bonds of companies involved in real estate, mortgage backed securities, and so on. The mutual fund structure is an ideal instrument for propelling investments into real estate. It combines the best features of the real estate industry with other financial instruments, and gives the investor a practical and efficient

HDFC Home Loans


means for including professionally managed real estate in his investment portfolio.

ICICI-HOME LOANSHome Loan Interest Rates for Resident Indians In your quest of the perfect home loan, ICICI Bank Home Loans ensures that you get the best deal, in terms of interest rate and other facilities also, in the most convenient way. With our varied offering of house loans and home finance, we give you an opportunity to select the perfect home loan as per your needs. You can choose from:

Adjustable Rate Home Loan Fixed Rate Home Loan

Combination of the above two Step Up Repayment Facility (SURF) SURF is a variant to enhance the eligibility of a young professionally qualified home loan customer with out increasing monthly outflow as EMI. The structuring consider a notional percentage increase in income

HDFC Home Loans


& offers options of graded increase in EMI over the tenure of the loan contracted. The tenure is divided in three parts

Primary being lowest EMI Secondary Tertiary being highest EMI

The following are the features of SURF Higher eligibility of loan amount with lower EMI Graded increase in EMI considering future increase in Income Suited for young professionals. SURF can be availed by Resident Indian whether Salaried or Self-Employed Professionals. Flexible Installment Plan (FLIP) FLIP is a variant for structuring enhanced eligibility of home loan applicants with varying tenure of income source. This repayment facility is given when income is going to reduce after certain time during the loan tenure due to one of the borrowers retiring before loan maturity. The EMI payable becomes affordable based on individual income source and also matching the family cash flow. This variant is offered typically to family members joining as applicants like husband & wife or father & son with varying tenure of service Period / Age norm. FLIP has the following features

FLIP considers income of two applicants and offers step down repayment facility One of the applicants should have service period till the end of the tenure of the loan FLIP would have two different EMIs during the tenure of the loan Normally the first EMI would be based on the combined income The second EMI would be smaller & based on the lower income with longer tenure of the applicant

HDFC Home Loans


FLIP can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian who is Salaried. Part Fixed, Part Floating A product that offers the dual benefit of fixed rate loans as well as floating rate loans. With this product, a customer can book part of his loan under a fixed rate plan and the other part under a floating rate plan. Thus, he can minimize the impact of any adverse changes in the interest rate regimes and at the same time, avail of any benefits that may come by way of favorable changes. Part Fixed, Part Floating can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian who is Salaried. SmartFix Home Loans 3 years fixed and floating rate thereafter. A product that offers the safety of fixed rates plus the advantages of floating rates. The Smart Fix enables the customer to lock at fixed rate of interest today with the contract to move to a floating rate on a subsequent date. For the first 3 years you get a fixed interest rate. From the fourth year, your loan gets switched to the prevailing floating interest rate. Thus, a customer gets an opportunity to observe the interest rate movement over a period of time and expects to benefit in the bargain Smart Fix can be availed by Resident Indian whether Salaried or SelfEmployed. The interest rate on ICICI Bank Home Loans is linked to the ICICI Bank Floating Reference Rate (FRR)/PLR. As per earlier communication, FRR/PLR was increased by 1% on Feb 9th 2007. Consequently interest rate for all existing customers under Adjustable Rate Home Loans (ARHL) also went up by 1%. Subsequent to this change, as per recent announcement, the FRR/PLR has been further increased by 1% effective from March 31st 2007.The FRR has gone up from 11.75% to 12.75%& PLR has gone up from 13.75% to 14.75%. For all the Adjustable Rate Home Loan customers, both the above changes will be effective from 1st April 2007. To know the impact of change in FRR on your existing Home Loan Tenure, please use the Online Calculator.

HDFC Home Loans


To know more about the change in FRR and its impact please Click here FAQ's For further queries regarding the change in rates, please Email Us or you can get in touch with our call centre at below mentioned numbers:Ahmedabad Bhubaneshwar Chennai Cuttack Delhi (Mobile) Guwahati Indore Kochi Lucknow Patna Ranchi Andhra Pradesh Goa Haryana Karala Maharashtra Rajasthan UP East Uttaranchal : 6630 9890 : 99384 88000 : 4208 8000 : 99384 88000 : 98181 78000 : 99541 08000 : 402 2005 : 238 4500 : 229 4577 : 99340 08000 : 99340 08000 : 98495 78000 : 98904 78000 : 98961 78000 : 98954 78000 : 98904 78000 : 98292 22292 : 99362 18000 : 98973 08000

Description of Charges Loan Processing Charges / Renewal Charges Prepayment Charges

Home Loans Home Loans: 0.5% of loan amount as Administrative fee or Rs.2,000, whichever is higher. Loan Overdraft against property or office premises: 1% of loan amount or Rs.2,000, whichever is higher. Fees are nonrefundable. 2 % on the principal outstanding on full prepayment NA

Solvency Certificate

HDFC Home Loans


Charges for late payment (loans)

Home Loans : 2% per month Home OD : 1.5% of the outstanding amount subject to minimum of Rs. 500/- & Maximum of Rs.5000/-

Charges for changing from fixed to floating rates of interest

1.75% on principal oustanding

Charges for changing from floating to fixed rates of interest

1.75% on principal oustanding

Cheque Swap Charges Rs. 500/Document Retrieval Charges

Rs. 500/-

Cheque bounce charges Rs. 200/Note : Service Tax and other govt. taxes, levies, etc. applicable as per prevailing rate will be charged over and above these charges

Factors Affecting Your Loan Amount:

HDFC Home Loans


ICICI Bank Home Loans brings to you a home loan power-packed with numerous facilities making it the perfect home finance option for you. With ICICI Bank Home Loans, you can get a home loan suited to your needs. The home loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of the property or the cost of construction as applicable. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history. A number of factors are taken into account when assessing your repayment capacity. Your income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity of your employment / business are some of them. However, there are ways by which you can enhance your eligibility. If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there are any co-owners they must necessarily be co-applicants. Did you know that your fiance's income can also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, will be done only after you submit proof of your marriage. Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility. While there is no need for a guarantor, it could be that having one might enhance your credibility with us. If so, our loan officer would provide you with the necessary details. The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each loan. Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included.

HDFC Home Loans


WELCOME to SBI Home Loans "THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18 in association with AC NielsenORG Marg in 21 cities across India. SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES in accordance with SBI's commitment to Environment protection. SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. Best Practices followed in SBI mentioned below will tell you why it makes sense to do business with State Bank of IndiaBest practices followed in SBI People dealing with End to End service by Permanent employees of SBI who are you accountable to you. Place SBI branch of your choice will service your loan account. You can always meet our employees face to face.

HDFC Home Loans

SPCJ Inst. Of Commerce & Business Economics. Complete transparency. Interest charged on the daily reducing balance. No penalty for prepayments made, out of bonafide savings or windfall gains for which evidence is produced.

Price Prepayment charges

Costs hidden in fine No hidden costs print Transparency Complete transparency. All the features of our product, including interest rates, are in the public domain.

Unique features: * Provision for on the spot "In principle" approval. * Loan sanctioned within 6 days of submission of required documents. * Option to avail Home Loan as a Term Loan or as an Overdraft facility to save on interest and maximise gains (see SBI MaxGain in the following sections) *Option to club income of your spouse and children to compute eligible loan amount *Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount *Provision to finance cost of furnishing and consumer durables as part of project cost *Repayment permitted upto 70 years of age *Free personal accident insurance cover upto Rs.40 Lac. *Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost) *Interest calculated on daily reducing balance basis, and starts from the date of disbursement.

HDFC Home Loans


Plus schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies. *Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat *Option to avail loan at the place of employment or at the place of construction Package of exclusive benefits:

Complimentary international ATM-Debit card Complimentary SBI Classic/ International Credit Card. Option for internet-banking Concessional package under Credit Khazana for prospective Auto Loan, Student Loan, Personal Loan borrowers whose accounts are conducted satisfactorily 50% concession in charges in respect of all personal remittances/ collection of outstation cheques

Personal loan at attractive rates under SBI Home Plus scheme tailored exclusively for SBI Home Loan customers. Purpose Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies. Eligibility Minimum age 18 years as on the date of sanction Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment.HDFC Home Loans


Loan Amount 40 to 60 times of NMI, depending on repayment capacity as % of NMI as under - Loan Amount 40 to 60 times of NMI, depending on repayment capacity as % of NMI as under

Net Annual Income Upto Rs.2 lacs Above Rs.2 lac to Rs. 5 lacs Above Rs. 5 lacs

EMI/NMI Ratio 40% 50% 55%

To enhance loan eligibility you have option to add: 1. Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with SBI. 2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. 3. Depreciation, subject to some conditions. 4. Regular income from all sources.Margin Purchase/ Construction of a new House/ Flat/ Plot of land: 20% for loans up to Rs. 1 cr., 25% for loans above Rs. 1 cr. Repairs/ Renovation of an existing House/ Flat: 20%

Interest Processing Fee 0.50% of Loan amount with a cap of Rs.10,000/-(including Service Tax)

HDFC Home Loans


Pre-closure Penalty No penalty if the loan is preclosed from own savings/windfall gains for which documentary evidence is produced by the customer. In case, such proof is not produced by the borrower, penalty @2% on the amount prepaid in excess of normal EMI dues shall be levied if the loan is preclosed within 3 years from the date of commencement of repayment. Security Equitable mortgage of the property Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged Maximum Repayment Period For applicants upto 45 years of age: 25 years For applicants over 45 years of age: 15 years Moratorium Upto 18 months from the date of disbursement of first instalment or 2 months after final disbursement in respect of loans for construction of new house/ flat (moratorium period will be included in the maximum repayment period) Disbursement In lump sum direct in favour of the builder/ seller in respect of outright purchase. In stages depending upon the actual progress of work in respect of construction of house/ flat etc. Documents Completed application form Passport size photograph Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters IDHDFC Home Loans


Proof of business address in respect of businessmen/ industrialists Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer) Copy of approved plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months

SBI-Flexi Home Loans A customized product designed to enable borrowers to hedge their Home Loan against unfavourable movement in interest rates. The product gives you a one time irrevocable option to choose one of the three customized combinations of fixed and floating interest rates and also to choose the order in which the fixed and floating rate will be availed. Minimum Loan Amount: Rs.5 lacs (Other terms and conditions as applicable to regular Home Loans) SBI-Maxgain Home Loans An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost. The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account. The product serves to minimize your interest cost by enabling you to park your surplus funds in SBI-Maxgain (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues. Minimum Loan Amount: Rs.5 lacs (Other terms and conditions as applicable to regular Home Loans) SBI-Realty Home LoansHDFC Home Loans


A unique product if you are on the look out for a loan to purchase a plot of land for house construction. The loan is available for a maximum amount of Rs.20 lacs* and with a comfortable repayment period of upto 15 years. You are also eligible to avail another Housing Loan for construction of house on the plot financed above with the benefit of running both the loans concurrently. (House construction should commence within 2 years from the date of availment of SBI-Realty Housing Loan) (Other terms and conditions as applicable to regular Home Loans) (* relaxation considered on case to case basis) SBI-Freedom Home Loans A revolutionary product designed for customers who are on the look out for a source of finance for a property they want to invest in without mortgaging the same. All you have to do is pledge any financial security that you have and you will get a Home Loan for your dream home. A must-take for those who do not want to pay stamp duty for mortgage of their property or go through the hassles of creation of mortgage. You also have an option to take the loan by way of mortgage of the property and pledge financial securities in lieu of margin money. Repayment is highly customized, giving you the option to repay through regular EMIs or through maturity proceeds of the securities pledged. (Other terms and conditions as applicable to regular Home Loans) SBI-OPTIMA ADDITIONAL HOME LOANS SBI-HOMELINE SPECIAL PERSONAL LOANS Innovative and value added products extended to existing Home loan

HDFC Home Loans


borrowers with a satisfactory repayment record of 3 years and whose loan is Standard Asset, with a view to reinforce the customer loyalty and to maintain long term relationship with the borrowers. In case of take-over of Home Loans from other Banks/HFCs, the borrower should have fulfilled the above conditions with the present Bank/HFC. Purpose

SBI-Optima Home Loans

Additional to meet expenditure towards major repair, renovation, addition to their house/flat, purchase of furniture, fixtures and consumer durables SBI-Homeline Special General purpose loan to meet expenditure Personal Loans to meet forseen/unforeseen contingencies Eligibility SBI-Optima Additional 18 times NMI (for salaried borrowers)/ Home Loans 1 times NAI ( for others) or (i)25% of the original project cost of house/flat (ii) 85% of the cost of repairs etc. or (iii) gap between 85% of the current market price of flat/house and actual outstanding loan dues , whichever is lower (EMI/NMI ratio of all loans should not exceed 60%) 18 times NMI (for salaried borrowers)/ 1 times NAI (for others) As applicable to Home Loans Interest rates 50 bps above rates applicable to the repayment tenure (floating rates only) Processing fee : 0.50% of the loan amount (including service tax)

SBI-Homeline Special Personal Loans Interest Rates/processing fee SBI-Optima Additional Home Loans SBI-Homeline Special Personal Loans

HDFC Home Loans


Inbuilt provision for availment of the loans on the expiry of each bloc of 5 years, the first bloc commencing on the expiry of 5 years from the date of sanction of original Home Loan. Original Home Loan and all SBI-Optima Home Loans/SBI-HomeLine Personal Loans can run concurrently Comfortable repayment obligations Tenure of the loans equal to the residual maturity of the original Home Loans -

PRASHASAN PLUS, TEACHER PLUS AND OIL PLUS The above plus schemes offer concessional interest rate of 0.25% below the applicable interest rates on Home Loans to niche client groups like Government Employees, Teachers, employees of public sector oil companies etc. For more information you may please call our contact centre on toll free number 1800 11 22 11

PNB-HOME LOANSHousing LoanPNB reaches out to you with fast, friendly and most convenient home loans for: Construction or purchase of house/ flat Purchase of house/ flat on First Power of Attorney basis from the original allottee. Carrying out repairs/ renovations/ additions/ alterations to existing house/HDFC Home Loans


flat. Special Feature- To cover the loan outstanding, life Insurance cover is also available on payment of one time premium which can also be financed by the Bank.

Extent of loanIndividual For construction/purchase of house/ flat:- 75% of the cost of construction of house or purchase of house/ flat . For carrying out repairs/ renovation/ additions/ alterations: - 75% of the estimated cost subject to maximum of Rs. 20lacs. Loan upto Rs.20 Lacs for purchase of Land/Plot. Loan is available maximum upto Rs.2 Lacs for furnishing

SecurityMortgage of property for which finance is being given. In case of purchase of house/ flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/ society, borrower and the Bank. In case of purchase of house/ flat on first power of attorney, additional security equal to 125% of the loan amount by way of mortgage of some other property or pledge of bank's FDR/ LIC policy/ Govt. Securities, NSCs, KVPs, IVPs, / PSU Bonds etc. has to be provided.

Rate of InterestRATE OF INTEREST (as on 01.07.2008):TENOR For loans repayable in/upto i) Upto 5 yearsfloating -fixed ii) Above 5 years & upto 10 yearsfloating -fixed iii) Above 10 years & upto 20 Rate of Interest @ percent p.a.

Loan Amt. upto Rs.20 Loan Amt. above Rs.20 lac lac9.50 10.75 9.75 11.50 10.00 10.00 11.25 10.25 12.00 10.50

HDFC Home Loans

SPCJ Inst. Of Commerce & Business Economics.yearsfloating -fixed iii) Above 20 years & upto 25 yearsfloating -fixed 11.75 10.50 12.25 12.25 11.00 12.75

Fixed Rate of Option is subject to Reset Clause of Five Years. Extra rate of interest of 0.50% on Card Rates to be charged in respect of persons already having one or more houses and availing housing loan for subsequent house(s). Option for Fixed or Floating Rate of Interest exercised by the borrower will not be allowed to be changed for a minimum period of 3 years, whereafter any change would be at the discretion of the Sanctioning Authority.

Upfront Fee0.90% of the loan amount + Service Tax & Education Cess

Documentation ChargesRs.1,350/- + Service Tax & Education Cess

RepaymentLoan is to be repaid in equated monthly installments within a period of 25 years or before the borrower attains the age of 65 years.

DisbursementFor outright purchase of house/ flat, the loan amount will be paid in lumpsum to the vendor.

HDFC Home Loans


For house/ flat under construction, the loan amount will be disbursed in stages as per progress of construction/ demand by selling agency.

CANARA BANKHOME LOANS::Opt for floating rates on home loans: Canara Bank Our Bureau Bangalore , Dec. 9 CANARA Bank is persuading housing loan customers to opt for floating rates instead of fixed rates.

HDFC Home Loans


Speaking to reporters after launching the bank's housing loan festival, the Chairman and Managing Director, Mr M.B.N. Rao, said: "We are not offering any fixed rates since the rates are expected to firm up. In such a situation customers will benefit from floating rate loans." Canara Bank expects to have housing loan portfolio of at least Rs 7,500 crore by the end of this fiscal if the current growth trend is sustained, he added. The bank currently has a retail portfolio of Rs 12,500 crore, of which the housing loan portfolio comprised of Rs 4,799 crore. He said that the bank was in an advanced stage of implementing the corebanking solution (CBS). The bank would roll out its pilot project on CBS early next year, he said, adding that it would be extended to the remaining branches across the country.

Canara Bank spares home loansSunday, 29 June , 2008, 11:53 Last Updated: Sunday, 29 June , 2008, 12:14 Canara Bank has left home loan and auto loan borrowers out of the purview of the hike in interest rates it announced on Friday The bank had announced a 50 basis point hike in BPLR (benchmark prime lending rate), taking it to 13.25 per cent, but said the hike would not cover home loans and auto loans, a welcome relief to its customers. Many other banks have increased the floating rates of home loans in tandem with the hike in PLR they announced, following the RBIs decision to hike repo rates and CRR.

HDFC Home Loans


More India business storiesM B N Rao, Chairman and Managing Director, Canara Bank, told Business Line that the bank had decided for the time being not to apply the hike in BPLR to home loan and auto loan customers. The RBI has announced measures to tighten fund flow to curb inflation. Home loans are not among the causative factors for the inflation, which continues to be high due to various reasons, including high fuel costs and other external pressures. Also, housing loans are not a short-term proposition and are part of a lifelong investment by the customers with whom Canara Bank has a wellrounded relationship. So the bank does not want to tinker with the loans and other smaller commitments (auto loans) as it expects inflation to taper off in the coming months.

Power Home : Documentation

HDFC Home Loans


Documents Required The following documents are required along with your loan application: Purpose Salaried Voter's ID card or driving license or PAN card or photo credit card or employees ID card or defense or police or government department ID card Latest salary slip showing all deductions or Form 16 along with recent salary certificate Bank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or latest LIC policy or insurance premium receipt or employers letter certifying the current mailing address or latest NSC or other similar instruments indicating the address or existing house lease agreement Others Voter's ID card or driving license or PAN card or photo credit card IT returns for the last 2 years and computation of income for the last 2 years certified by a CA Bank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or latest LIC policy or insurance premium receipt or latest NSC or other similar instruments indicating the address

Proof of identity

Proof of income

Proof of residence

Bank statement or Pass Book where salary or income is credited Guarantor form

Last 6 months

Last 6 months

Optional

Optional

Axis Bank reduces rates of home loansHDFC Home Loans


By Agencies Private sector lender Axis Bank has reduced floating interest rates of home loans by 0.50 per cent for existing and future customers, a senior bank official said. The industry practice was to acquire fresh customers by offering a lower rate on floating loans "but we want to maintain a parity between both our existing and future customers," Axis Bank's Assistant Vice-President Imtiaz Ahmed told PTI. The rate has been brought down from 11 per cent to 10.5 per cent for both categories, he said, adding that the revised rate comes into effect from October 1. The bank (formerly UTI Bank) has, however, not effected a change in its fixed home loans rate, which remains at 13 per cent. "We have no immediate plans to have a re-look at our fixed rate," Ahmed said, adding that nearly 95 per cent of the bank's home loan customers were opting for floating rate. "Our decision to lower rates on our floating home loans is a strategic decision," he said. There has been a good growth in the bank's home loans portfolio and presently it constitutes 54 per cent of the total retail portfolio, he said. "Every month, we are adding around Rs 300 crore by way of mortgage loans." A clutch of banks have reduced their home loan rates in the last one month. While some have offered reductions in view of the on-going festival season, others have done so to keep pace with competition. Some of the leading banks that have lowered home loan rates are public sector Bank of Baroda, Union Bank of India, Canara Bank and IDBI Bank

HDFC Home Loans


Religare Macquarie appoints Vikas Agnihotri as CEO Religare Macquarie Wealth Management on Monday appointed Vikas Agnihotri as its Chief Executive Officer. ET Debates

How to deal with ever-rising crude prices?

SENSEX 13791.54 -557.57 NIFTY 4189.85 -142.25 DJIA 11131.08 -239.61 NASDAQ 2264.22 -46.31 RS/$ 42.30 -0.03

Accounts Deposits Loans Cards Investmets Insurance Payments Other ServicesPower Home: Terms and Conditions Repayment

Repayment period for home loans shall not exceed 20 years Repayment period of pre-allotment bookings of housing loans shall not exceed 1 year

HDFC Home Loans


Repayment period of improvement or renovation or extension of existing property shall not exceed 10 years Security Equitable mortgage of the property to be financed by way of deposit of title deeds. Disbursement The loan will be disbursed in full or in suitable installments, taking into account the requirement of funds and progress of construction, as assessed by the Bank directly to seller or builder or local development authority or supplier of materials etc. Processing charges or admission fee Processing fee equivalent to 1% of the loan amount (applied for) will be collected along with the application form (taxes as applicable). Penalty for early closure 2% of the principle outstanding in case of takeover by other bank or HFC, otherwise nil. Other Conditions

Bank reserves the right to reject any application without assigning reasons thereof The applicant will undertake to inform the Bank as and when there is a change in address or employment

The terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion.

HDFC Home Loans


IDBI Home LoanIDBI-(Industrial Development Bank Of India Limited) Home Loan provides solution to all your worries regarding home financing by providing housing loans at attractive loan rates. With IDBI Bank Home Loans you can avail the advantages like option between fixed & floating rate of interest, EMI, service at your doorstep along with easy to understand documentation as well as legal & technical assistance IDBI Home Loans also gives the balance transfer facility and housing loans at a very low interest rate. Besides this, insurance on your loan amount is also offered by IDBI Bank. You can take IDBI Housing Loan for a period of 20 years if you are employed while self-employed can avail the loan only for a period of 15 years and in case of NRI's it is only 10 years. 90% of the cost of home can be covered. IDBI Home Loan offers two options of interest rate, 14% and 14.25% onHDFC Home Loans


Fixed Rate Home Loans for 3 years and 5 years respectively. The Floating Rate Home Loan for the tenure of 1-20 years is 11.25%. Indiahousing.com provides the following link to find further detailed information about IDBI Home Loan and its different loan schemes with varied rate of interest while appreciating its services and contribution towards the growth of Real Estate industry in India: Website:http://www.idbi.comIndia Housing- Real Estate India India Housing- Property in India

FeaturesHDFC Home Loans


Sponsored Link Loan available for purchase, construction, repair, renovation and house extensions. Loans are also available for plot purchase.

EligibilityShould be engaged in a permanent service, profession or business to be eligible for a loan. Loan schemes are for those funding residential house by way of construction, purchase of new house or flat, existing house or flat not more than 35 years old, extension or renovation of existing house.

Home Loan Amount Tenor of a home loan can be up to 20 years for a resident individual and 10 years for non-professional NRIs, subject to maximum age of 60 years for resident Indians and 55 years for NRIs on loan maturity date. In case of home loans for purchase or construction, 85 per cent of the total cost of the house will be available as a loan.

Margin15 per cent of the cost of purchase/ construction/ repair/ renewal/ renovation of a residential property or a vacant plot need to be brought in by the loan seeker.

Processing FeeProcessing fee for loans is 1 per cent of the loan amount, subject to a maximum limit of Rs. 50,000 plus service tax.

Prepayment fee2% of the loan amount prepaid.

Repayment Period

For 'Griha Prakash', the repayment tenure is up to 20 years or before retirement or 60 years of age (whichever is earliest).

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The loan tenure is 5-15 years, or 60 years of age. For purchase of vacant plot/site, the loan repayment tenure is up to 10 years or before /at the retirement age, or 60 years of age (whichever is earliest). However, in case of purchase from government bodies/statutory bodies, the maximum tenure is 15 years. For Non- Professional NRIs term is restricted to 10 years, but 15 years for Professionals. It shall, however, not exceed retirement age or 55 years of age, whichever is earliest.

Common requirements:Duly Filled in Application Form.

Income Particulars, as applicable, along with copies of Updated Bank Statements / Passbooks of each Applicant for the past 6 months. If Property has been identified / already belongs to the Applicant (s) then: Copy of Approved Plan Copies of Title Papers

Additional Documentation for Salaried Applicant (s):

Copies of Payslips of the Applicant (s) for the past 6 Months till the Month preceding the Month of Application Copy of Appointment Letter / latest Pay Revision Letter, if possible. Copies of Form 16 with copies of ITRs & Computation Statement for latest Assessment Year.

Additional Documentation for Self-employed Applicant (s):

Copies of last 3 years ITRs with Computation & Personal Financial Statements of the Applicant (s) along with copies of TDS Certificates / Income Tax Paid Challans.

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Additional Documentation for NRI Applicant (s):

Copies of Valid & Attested / Notarised Passport & Visa / Permanent Resident Card. In case of Employment, copy of the Valid Employment Contract. Copies of Updated Bank Statements / Passbooks of Bank Accounts in India as well as the relevant Country, in case of each Applicant for the past 6 months.

Additional Documentation for considering Income from Rentals:

Copies of latest Municipal Tax Receipt (s) & Title Papers in favour of the Applicant (s). Copy of Lease Agreement (s).

Full details regarding TDS & Monthly / Annual outgoings.Smart Apply

Indian NRI

STD

Phone No

Ext

Date of Birth

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LIC Home LoanLIC Housing Finance Limited is one of the leading players in the home loan segment. Incorporated on June, 19, 1989 and promoted by the Life Insurance Corporation of India, LIC Housing Finance Limited boasts of an extensive distribution network and a massive brand presence by virtue of being one of the earlier entrants in the market for housing loans. LIC offers home loans for construction/purchase of house/flat and also for renovation of existing flat/house. LIC Griha Prakash and Griha Laxmi loans are for purchase and construction of properties and the maximum loan offered can go up to Rs 1 crore. In both the cases the home loan finances up to 85% maximum of the cost of the property which is inclusive of agreement value, stamp duty and registration charges. LIC Griha Sudhar Loan facilitates repairs/renovation of properties. The maximum loan amount can be up to Rs.10 lacs and the loan to property cost won't exceed 85% of Cost of Repairs or 25% of Market Value of Property, whichever is lower. LIC Griha Prakash loans are meant for extension of residential units and the loan amounts range from Rs. 25,000 to Rs.1,00,00,000. The company

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finances up to 85% of the total cost of the property including Stamp Duty and Registration Charges. The maximum repayment period can be up to 20 years or retirement age or 70 years of age, whichever is earliest.

HSBC Home LoanHSBC has made rapid strides in the home loan segment. HSBC provides loans for ready property, under construction property, self-construction and home improvement. HSBC home loans range from Rs. 5 lakhs to Rs. 3 crore and the maximum repayment period can go upto 25 years. Flexible repayment options of HSBC allow home loan borrowers to choose between fixed and floating rate home loans. They also have the option of switching from a floating rate home loan to a fixed rate home loan once a year at no extra cost. Once the home loan is approved, customers get a Gold Credit card, free for the first year with annual charges being waived. HSBC's MyHome is a unique home loan product that lets the borrower control the EMIs on an annual basis. Every year, depending on the customer's financial needs, he can decide to pay an EMI that is either 15% higher or lower than the regularEMI. HSBC's Smart Home is a savings-linked home loan product that requires the customer to open a current account with HSBC. The EMI varies from month to month depending on the balance maintained in the account and the bank claims that the customer can save up to 50 per cent on interest expenses of the loan.

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Recent Experiences in the Housing Finance Sector - A Study with Reference to India::Housing Finance International, Sep 2007 by Saravanan, PHousing is one of the fundamental demands for living. Access to acceptable housing is one among the elementary human needs as well as one of the keys to peace and happiness. In every country, resolving housing issues has political, social and economic significance. Housing is a significant engine for growth and development of the economy. Home to roughly 1.1 billion people, India is the second most populous country after China and is expected to overtake it by 2030; roughly one in every sixth person on earth lives in India. More Articles of Interest Indian housing finance system, The Housing Finance in Afghanistan: Opportunities and Risks Greed spurred slaying of 72-year-old, Oakland police say Dispute led to man's slaying, cops say How To Pick A Manager For Your Money - advice on choosing a financial advisor...

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The growth rate of the population is still rapid which will result in an unfavourable land-man ratio reflecting high density in pockets. The disproportionate urbanization leads to steady migration of people from rural to urban areas at the aggregate level. This in turn resulted in a huge demand on the infrastructure of the cities, besides causing pressure on the land. It is evident from Table 1 that one in every three Indians is under the age of 15, and only one in three is older than 35. When comparing with other countries such as China, USA and Japan, India has the unique advantage of a higher level of middle aged and lower level of aged people. Indian GDP has grown at 6% for the past 10 years and 8% for the last three years and interestingly the service sector accounts for 60% of GDP. It can be seen from the Table 2 that in spite of the merits highlighted in the preceding paragraphs, India has the lowest figure for house mortgages as a percentage of GDP. Amongst the Asian countries, Hong Kong has the highest ratio, followed by Taiwan, Malaysia, Thailand and Korea. It could be inferred from Exhibit 1 that the consumption pattern amongst the Indian population is expected to change 2013. The strivers are less but aspirers and rich are significant higher compared to 2003. The housing finance sector in India has undergone unprecedented change over the past two decades. Exhibit No 2 depicts clearly the existing housing finance system and Exhibit No 3 indicates the transitions. The housing finance requirements in the country are catered for by the following types of institutions:

* Scheduled Commercial Banks* Scheduled Cooperative Banks * Regional Rural Banks * Agriculture and Rural Development Banks * Housing Finance Companies * State Level Apex Co-operative Housing

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* Finance SocietiesHousing finance as a financial service is relatively young in India. The growth in housing and housing finance activities in recent years reflect the buoyant state of the housing finance market in India. The real estate sector is the second largest employment generator in the country. The government's support to housing had traditionally been centralised and directed through the State Housing Boards and Development Authorities. In 1970, the state set up the Housing and Urban Development Corporation (HUDCO) to finance housing and urban infrastructure activities. In 1977, the Housing Development Finance Corporation (HDFC) was the first housing finance company in the private sector to be set up in India. The public sector insurance companies - Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) were also mandated to support housing finance activities, both directly through their housing subsidiaries (both established in 1989) and indirectly through a mandated requirement to invest a certain proportion of their annual accretion in socially oriented schemes which includes housing. In 1988, the National Housing Bank (NHB) was established as a 100% subsidiary of the Reserve Bank of India, (the central bank of the country), to promote housing finance through a refinance mechanism to banks, housing finance companies (HFCs) and other institutions and also to function as the supervisory and regulatory body for housing finance firms. Currently there are 29 HFCs approved for refinance assistance from NHB. Although commercial banks were the largest mobiliser of savings in the country, traditionally banks were rather reluctant to lend for housing as they preferred financing the working capital needs of the industry. Several banks had set up housing finance subsidiaries which functioned as independent units with little support or interest from their parent bank. Towards the end of the 1990s, against the backdrop of lower interest rates, industrial slowdown, sluggish credit off-take and ample liquidity, and financial deregulation commercial banks shifted their focus from the wholesale segment to retail portfolios. Growth Trends

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The lower interest rate regime, rising disposable incomes, stable property prices and fiscal incentives made housing finance attractive business for commercial banks. Further, housing finance traditionally has been characterised by low nonperforming assets (NPAs) and given the vast demand for housing loans, almost all the major commercial banks plunged into the business of housing finance. The robust growth during the last decade has been triggered by a number of factors, some of which are listed below:

Indian housing finance system,Housing Finance International, Dec 1999 by Vora, P P

DEMOGRAPHIC INFORMATIONSituated in the Northern Hemisphere, India has one of the world's oldest civilizations, with kaleidoscopic variety and a rich cultural heritage. India is the seventh largest country in the world, covering an area of 3,287,263 square kilometers. It is the second most populous country, and her population as of March 1, 1991 (the last census conducted) was 846.3 million, which accounts for 16% of the world's population. Most Popular Articles in Business Research and Markets : Tesco Plc - SWOT Framework Analysis Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors eBay made easy: ready to start an eBay business? These 5 simple steps will ... Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ... Wal-Mart's newest distribution center opened last month near the southwest ... More

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The average annual exponential growth rate as per the 1991 census was 2.14%, with 74.3% of the population (628.8 million) living in rural areas and the remaining 25.7% (217.5 million) in urban areas. The rural population accounted for 89.2% in 1901 and has dropped since. In 1991, India had 23 cities with a population of more than a million each, and the total population of these cities accounted for nearly 33% of the urban population. The density of population which was 77 persons per square kilometer in 1901 steadily increased over the years and stood at 267 persons in 1991. The estimated midyear population during the year 1996-97 was 936 million. The Indian Union now comprises 25 states and seven union territories. Each of the states is governed by an elected body

PHYSICAL FEATURESThe country can be divided into four distinct regions, viz., the great mountain zone, plains of the Ganga and the Indus, the desert region and the southern peninsula. The great mountain zone in the northern part of the country is interspersed with large plateaus and valleys. The plains of the rivers are among the world's greatest and have some of the richest soil. They also are among the most densely populated areas on the earth. The desert region in the northwest part of the country is divided into two parts, viz., the great desert and the little desert; in between the two lies a zone of absolutely sterile country, consisting of rocky land cut up by limestone ridges. The southern peninsula is flanked by mountain ranges both on the eastern and the western region. While the mountain zone in the northern part of the country is susceptible to seismic disturbances, the peninsular region in the south is relatively stable and subjected to vary rare seismic incidents. The climate of India may be broadly described as a tropical monsoon type. It can be concluded that India is one country where the requirement of housing is of different types.

HOUSING SITUATION

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The total housing stock in the country was 148 million units in 1991, as compared with 116.7 million units in 1981. However, the usable housing stock was only 133.8 million units in 1991 and 101.5 million units in 1981. The usable housing stock rose by 31.9% during the period 1981-91. In comparison, the total number of households was 153.2 million in 1991 and 123.4 million in 1981. The number of households increased by 24% during the decade 198191. It has been estimated that the usable housing stock will grow by 23% during the period 1991-2001, and the households will grow by 16.5% during the same period. Thus, the usable housing stock is estimated to be around 164 million and the number of households around 178 million by the year 2001. India continues to face the problem of a shortage of housing units in the country. The housing shortage was 23.3 million units in 1981, and it came down to 22.9 million in 1991. It is estimated that the shortage may come down to a level of 19.4 million units by the year 2001. While the growth rate in dwellings continues to be relatively lower in the rural areas, it has been showing an increasing trend in the urban areas, thereby indicating greater tendencies of urbanization. The current period has also been witnessing an increased influx of population from the rural to urban areas, leading to unorganized settlements due to which there has been tremendous pressure on the infrastructure and services available in the urban areas.

Housing ShortageHousing shortage has been estimated on the basis of the number of households (including homeless households), available housing stock, acceptable housing stock, aspects of congestion and overcrowding. The population census provides background information on households, including homeless households, housing stock and acceptable housing stock (material of wall and roof). Overcrowding and congestion is assessed on the basis of number of living rooms in the dwelling unit, number of members and number of married couples in the households. The National Building Organisation has estimated urban housing needs (backlog) of 8.23 million units as of March 1, 1991.

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Using the regression growth rates, the present housing shortage has been estimated at 20.41 million.

EVOLUTION AND ROLE OF NATIONAL HOUSING BANK (NHB)Even though there were a large number of agencies/institutions providing direct finance to individuals for house construction, there was no organized housing finance system as such before the establishment of NHB in 1988. The vacuum in the institutional finance for housing and other construction activities was felt due to inadequate flow of funds for such activities from existing institutions and absence of specialized credit institutions to provide funds for the purpose. If you landed on this page by some search engine, you are certainly in looking out for a change in your living style or looking to buy a new house. The g