INTRODUCTION

PREFACEI am extremely happy to place before the esteemed teacher HOUSING FIANANCE COMPANY MARKETING STRATEGY OF HDFC . It is an attempt make by me to find out the leading brands in Sagar City.The Project Report has on objective to get the B.B.A. Studetns familiar with real life buisness situations and gives an opportunity to the students to understand the theoretical concepts of marketing and finance in practical way. The research starts with a short introduction of the company followed by the line of the objective and research methodology.Next Chapter Deals with the data analysis and interpretation that is based on questionnaire. Then comes the limitation, suggestions conclusion of the research report. Students name : NEERAJ KACHHI Class :BBA VTH SEM.

ACKNOWLEDGEMENTI Wish to express my deep sense of gratitude to all who generously helped in successful completion of the project work by sharing their valuable time and knowledge. I t thankfully acknowlege Mr. Manish Jain (HOD BBA Dept) GIMS Sagar for giving me the opportunity to conduct and survey. I Would like to express my sincere thanks to MISS RUPALI PATEL LecturerBBA Dept) and all other faculty members, GIMS sagar who directly and indirectly rendered me all possible hlep and guidance for preparing the report. Finally I would like to thanks my parents, my friends without whom completion of my project report would not have been possible. Students name : NEERAJ KACHHI Class :BBA VTH SEM.

CERTIFICATE A PROJECT REPORT ON HOUSING FIANANCE COMPANY MARKETING STRATEGY OF HDFC is prepared by NEERAJ KACHHI under The guidance of Miss RUPALI PATEL is a satisfactory in respect to comments Contents and presentation of the Subject Matter. Language Submission with in due date.

Signature of Supervisor Signature of Examiner Signature of HOD

DECLARATION BY THE CANDIDATE

Date:

I declare that the project report titled HOUSING FIANANCE COMPANY MARKETING STRATEGY OF HDFC is my own work conducted under the supervision of MISS RUPALI PATEL, Gyanveer Institute of Management and Science Sagar. To the best of my knowledge the report does not contain any work, which has been submitted for the award of any degree, anywhere.

Students name : NEERAJ KACHHI Class :BBA VTH SEM.

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TABLE OF CONTENTS Preface Acknowledgement Certificate Declaration by the CandidateTOPIC NAMEPAGE NO.

CHAPTER 1 INTRODUCTION

(A) COMPANY PROFILE

(B) HISTORY

(C) KEY PERSON

CHAPTER 2 OBJECTIVE

CHAPTER 3 RESEARCH METHODOLOGY

(A) TYPE OF RESEARCH

(B) SOURCE OF RESEARCH

CHAPTER 4 PRODUCT & SERVICE DETAILS

CHAPTER 5 MARKET SEGMENTATION

CHAPTER 6 DATA ANALYSIS AND INTERPRETATION

CHAPTER 7 SWOT ANALYSIS

CHAPTER 8 LIMITATION

CHAPTER 9 SUGGESTION AND CONCLUSION

CHAPTER 10 BIBLIOGRAPHY

CHAPTER 11 QUESTIONNAIRE

IntroductionHousing is one of the best human needs of the society. It is closely linked with the process of overall socio-economic development of a country. India, being a highly populated country, there is a great need and scope for the development of Housing Sector. Unfortunately, for some reasons or the other, the housing sector in India has remained underdeveloped in the past, however, it is hoped that there would be improvement in the near future.Housing is a growing industry. There is substantial gap between demand and supply and is persisting for a very long period. According to an estimate by the National Building Organization, the cumulative shortage of total dwelling houses in the country by the end of 1991 was 31 million. It is further estimated by this organization that the demand for housing will be around 4.5million units, leaving a gap of one million housing units annually. Hence, based upon this estimate, the cumulative shortage of housing may reach to 41million units by the end of this century.Presently, funds required per dwelling shelter are so high that the individuals saving is not adequate to meet the expenditure of house building. As a result, there is great demand for external housing finance. Housing was given due priority only in 1988 when a National Housing Policy was announce. The policy reflected the trust that housing was not merely consumption expenditure but also a productive investment which would provide economic activity in the country. Besides this, the policy also envisaged that an impetus given to housing would stimulate economic development through creation of substantial employment opportunities. Consequently, the institutional mechanism for housing was strengthened by the establishment of National Housing Bank (NHB) by the Reserve Bank of India.

Institutional Framework

The setting up of the National Housing Bank marked the new era in housing finance as a new fund based financial service in the country. A large number of financial institutional/companies in the public, private and joint sector entered in this field. For example, Life Insurance Corporation of India and General Insurance Corporation came with various schemes for financing the housing units. In 1970, Housing and Urban Development Corporation (HUDCO), a wholly government owned enterprise, was setup with the objective of housing and urban development as well as infrastructure development. After that, in 1977, another Corporation named Housing Development Finance Corporation (HDFC) was set up in private sector.Housing was given due priority only in 1988 when a National Housing Policy was announced. The policy reflected the trust that housing was not merely consumption expenditure but also a productive investment which would provide economic activity in the country. Besides this, the policy also envisaged that an impetus given to housing would stimulate economic development through creation of substantial employment opportunities. Consequently, the institutional mechanism for housing was strengthened by the establishment of National Housing Bank (NHB) by the Reserve Bank of India.

Structure of Housing Finance Industry Housing Finance

Formal SectorInformal Sector

Borrowings from friends, relatives and money lenders etc.

Household savingsDisposal of Existing properties

Non-BankingBankingGovernment

Central Govt. State Govt.Public AuthoritiesCommercial BanksCooperative BanksOther Banks

HUDCO

Non-Banking Housing Finance Companies (NBHFCs)House Finance Companies (HFCs)Non-Banking Finance Companies (NBFCs)

Specialized Institution HDFCInsurance LIC/GIC

Home Loan TypesOwning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India. And the most important thing is you should know about each and every termrelated with Home Loans before applying for a Loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property. You can take different types of home loans like Bridge Loans, Home construction Loans, Home Equity Loans, Home Extension Loans, Home Improvement Loans, Land Purchase Loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs. Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new home. Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased. Home Construction Loans: These loans are available for the construction of a new home. Home Extension Loans: These loans are given for expanding or extending an existing home. For egg: addition of an extra room etc. Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan. Land Purchase Loans: These loans are available for purchasing land for both construction and investment purposes. Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.

housing finance in india

The Home loan sector in India is the pi-vital role player in the growth of the real estate scenario in India. With tax incentives given to the housing finance sector in the annual budget of 2001, transactions related to buying and selling of residential properties increased considerably and was much higher as compared to previous years. Since the new class of buyers are relatively younger set of customers who are more aware about legal documentation and approvals, buyers are now more 'end-users' rather than investors; the property market in India undergoes transformation to align itself with global standards with an increased emphasis on quality & cost control and documentation methods. In the current economy of India, the real estate sector has the maximum propensity to generate income and demand for materials, equipment and services. It can be said that housing finance companies were formed for co-existing with buyer's requirements of housing loans for investing in properties. Home loans are made available by financial institutions to both Indian and NRI customers at floating and fixed rate of interest and also at attractive EMI options. For construction or buying a new home For home repairs and renovations For purchase of plots Against mortgage of property No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail of the tax benefits.Besides home loans, Commercial property loans are also available and different financial institutions in India provide commercial loans at different rates and different upper limits. Real estate loans are available to builders, promoters and real estate developers. The experience and financial standing of the builders is taken into account before the loan is granted which is to be returned with the minimum installments. Today, the amount of money that a city dweller spends on rent is roughly the same, or only slightly less than the amount he pays as an EMI on a housing loan. Earlier the home loan sector in India was solely dependent on nationalized and public sector banks, but the entry of public sector banks into the housing finance business marked the beginning of the first round of interest rate cuts. And this reduction in interest rates has enhanced the borrowing power of customers. Moreover, HFCs are offering incentives to attract investors like Some companies sanction the housing loan without requiring you to identify property as a pre-requisite for eligibility Free accident insurance & property insurance Waiving of pre-payment penalty Waiving of processing fee

There are a few documents which the finance companies require for setting up Salaried EmployeeSelf-employed

The latest salary slip showing statutory deductionsComputation of income for the previous two years, certified by a Chartered Accountant

Form 16 (showing tax deducted at source by employer)Profit & Loss Account and Balance Sheet for the previous two years, certified by a Chartered Accountant

Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving licenseProof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license)

Proof of residence (phone bill/electricity bill/ration card).Proof of residence (phone bill/electricity bill/ration card).

CRITERIA FOR ELIGIBILITY OF HOME LOANS.The realty boom in India has given a new dimension to the finance sector in India - both in Home Loans and Home Insurance segments. This has not only given a competitive edge to the finance companies to provide attractive options to customers but has also contributed to the increased investments in the real estate sector. This has resulted in 13 new institutions foraying into the housing finance business in the last three years.Major Home Loan Providers

Banks & Public Sector Housing Finance CompaniesState Bank of India, Corporation Bank, Punjab National Bank, Central Bank, Dena Bank, Allahabad Bank, Bank of Maharashtra, Bank of Baroda Housing Finance, Can Fin Homes, GIC Housing Finance, LIC Housing Finance, PNB Housing Finance, SBI Home Finance, Centbank Home Finance, HUDCO, LIC, etc.

Financial InstitutionsHDFC, ICICI Ltd, Citibank, HSBC, StandardChartered- Grindlays, IDBI Bank, etc

SWOT ANALYSIS

STRWNGTHS 1)An active mainstream sector . 2)Effective regulatory framework. 3)Extensive network of regional bank microfinance institution, cooperatives credit unions and rural bank.

WEAKNESSES

Interest rate war persistent Dilution in due diligence on part of leaders is a often seen. Lack of uniformity of norms. Increase in default rates.

OPPORTUNITIES Increasing urbanization. Housing microfinance has potential. Tax rebates on house loan. Falling interest rates.

THREATS

Lower transaction levels in realty sector.High switching costs of customers.Higher cost of home ownership is mainly depending the demand at other end.

Tax Benefits on Home Loans

As the Indian real estate market makes an upward swing, and investors opt for housing finance or home loans, tax benefits obtained from them is a lucrative option. Customers availing of Home Loans can claim a certain portion of the interest and principal that they pay towards the loan installments for reducing tax liability. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Moreover, an added tax benefits under Sec 80 C on repayment of principal amount up to Rs. 1,00,000 p.a. can be availed that can further reduce your tax liability by about Rs. 30,000 p.a.Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. These deductions are available to assesses, who have taken a loan to either buy or build a house, under Section 24(b). Interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are satisfied: Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property. The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed. The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house A loan for refinance of the principle amount outstanding under an earlier loan taken for such acquisition or construction. If the conditions stated above are not fulfilled, then the interest on borrowed capital is deductible up to Rs 30,000 though the following conditions have to be satisfied: Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property. Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property. If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed. In addition to the above, principal repayment of the loan/capital borrowed is eligible for a deduction of up to Rs 100,000 under Section 80C from assessment year 2006-07.

Terms and conditions for availing Tax benefits on Home Loans1. Tax deductions can be claimed on housing loan interest payments, subject to an upper limit of Rs 150,000 for a financial year. Interest on the fresh loan can be claimed as a deduction, subject o the stated upper limit.2. An additional loan for extension/addition to the same house and the person's deductions on the existing loan are less than Rs 150,000; he can claim further benefits from the additional loan taken, subject to the upper limit of Rs 150,000 for a financial year. 3. Tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only when the payment is made. If a person fails to make EMI payments, he cannot claim tax benefits for the same. 4. According to the Income Tax Act, only the person who has taken the loan can claim tax rebates. 5. The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs 150,000. 6. A husband and wife, both of whom are tax-payers with independent income sources, get tax deduction benefits, with respect to the same housing loan; to the extent of the amount of loan taken in their own respective name.7. If a person buys a house and sells it within the same year/after 3 years, and if any profit is made, then a capital gains tax liability arises on the same for which the individual is liable to pay short-term capital gains tax since the sale took place in the same year. But, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen.8. If it is proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits, then tax benefits will not be allowed and benefits, previously claimed, will be clubbed to the income and taxed accordingly. 9. Tax benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans. This means that if you have already availed of one loan to refinance the original loan and want to no avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible. This is because the Section 24 (1) only talks of the second loan and not of subsequent loans. Even if you take the second loan at a rate of interest higher than the original loan, you will be eligible for a tax rebate on the second loan.

OBJECTIVE To study how to choose the right housing finance bank. To study how do get loan for construction of residential houses. To discuss housing credit more affordable. To know the some of housing finance schemes. To discuss some tip for buying house. To study of terms and condition of home loan. To find out that how people to construction of houses by attractive EMI systems.

SCOPE OF STUDYThis study is analysis of housing finance schemes of HDFC, ICICI, PNB AND SBI banks. It is helpful in analyzing the home loan Schemes service provided to the customer and their comparison. This study was conducted by the researcher in BILASPUR, because of constraints of time and money study could not be extended to other cities. As BILASPUR being a popular and among the good cities of India is a good market of financial products & also here customers of different classes like business segment, service segment, and professional segment are in excess. Since the report aims at finding the potential for financial products at BILASPUR itself taking into consideration certain limits and problems, the area was chosen on the basis of coverage of product no. of respondents

HDFC BANK HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from theReserve Bank of India (RBI)to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies.Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.In 2008 HDFC Bank acquiredCenturion Bank of Punjabtaking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.

HOME loan of hdfc Bank

Features Maximum loan-80%of the cost of the property (including the cost of the land) and based on the repayment capacity of the customer. Applicant and Co- Applicant to the loan-Home Loans can be applied for either individually or jointly. Proposed owners of the property, will have to be co-applicants. However, the co-applicants need not be coowners. Maximum Term-20 years subject to your retirement age. Adjustable Rate Home Loan-Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your loan may change. However, the EMI on the home loan disbursed will not change*. If the interest rate increases, the interest component in an EMI will increase and the principal component will reduce resulting in an extension of term of the loan, and vice versa when the interest rate decreases.*Conditions Apply Fixed Rate

Home Loan : Loan Purposes

One can apply for Power Home for the following purposes:Purchase of Flat, row house, bungalow from developers Existing freehold properties Properties in an existing or proposed co-operative housing society or apartment owner's association First Power of Attorney purchases in Delhi for DDA flats allotted before 1992. Home Loan: Eligibility

SalariedSelf

Age21-60 years25-65 years

IncomeIncome criteria not providedIncome criteria not provided

Job ExperienceJob experience not providedJob experience not provided

Residence ProofResidence proof not providedResidence proof not provided

Home Loan: Loan Amount

Limits on home loan

Minimum - Rs1lac Maximum - Rs50lacs

Margin 20% in the case of home loans 25% in case of improvement or renovation loans

Home Loan: Documentation

You can download the Application Form and submit alongwith the following documents for an approval of loan.

Salaried CustomersSelf Employed ProfessionalsSelf Employed Businessman

Application form with photographApplication form with photographApplication form with photograph

Identity and Residence ProofIdentity and Residence ProofIdentity and Residence Proof

Latest Salary-slipEducation Qualifications Certificate and Proof of business existenceEducation Qualifications Certificate and Proof of business existence

Form 16Last 3 years Income Tax returns (self and business)Business profile

Last 6 months bank statementsLast 3 years Profit /Loss and Balance SheetLast 3 years Income Tax returns (self and business)

Last 3 years Profit /Loss and Balance Sheet

Processing fee chequeLast 6 months bank statementsLast 6 months bank statements (self and business)

Processing fee chequeProcessing fee cheque

Home Loan: Interest Rates & Charge

Applicable Rates(Monthly Rest Basis)Fixed rates%Variable rates%Basis%RPLR

Upto and including Rs 30 lacs11.509.75RPLR - 5.75

Rs.30.01 lacs to Rs.75 lacs11.5010.00RPLR - 5.50

Over Rs.75 lacs11.5010.25RPLR - 5.25

The above rates are subject to change without notice.

Home Loan: Terms and Conditions

Repayment

Step Up Repayment Facility- Helps young executives take a much bigger loan today based on an increase in their future income, this helps executives buy a bigger home today! Flexible Loan installments Plan- Often customers, parents and their children, wish to purchase properties together. The parent is nearing retirement and their children have just started working. This option helps such customers combine the incomes and take a long term home loan where in the installment reduces upon retirement of the earning parent. Tranche Based EMI- Customers purchasing an under construction property need to pay interest ( on the loan amount drawn based on level of construction) till the property is ready. To help customer save this interest, we have introduced a special facility of Tranche Based EMI. Customers can fix the installments they wish to pay till the time the property is ready for possession. The minimum amount payable is the interest on the loan amount drawn. Anything over and above the interest paid by the customer goes towards Principal repayment. The customer benefits by starting EMI and hence repays the loan faster.

SecuritySecurity for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. Interim security may be required, if the property is under construction.

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 0.5% of the loan amount (applied for) will be collected along with the application form (taxes as applicable).Penalty for early closure - NilOther 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 employmentThe terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion.Home Loan: Fair Practice Code For Lenders

As directed by the Reserve Bank of India, vide circular DBOD.No.Leg.No. BC.65/ 09.07.005/2006-07 dated March 6, 2007; the Bank has adopted modified Fair Practice Code for lenders as approved by the Board of Directors. The salient features of the same are:

i) Applications for Loan In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them. ii) Processing a. The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.b. The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant.c. For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month.iii) Loan Appraisal and Terms and Conditions a. The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.b. All the terms and conditions and other caveats will be duly communicated by an authorized official of the Bank to the customer in writing.c. The acceptance of the customer will be obtained on the sanction letter with the customer's signature under the caption A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter.d. The sanction letter / loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank.i. Drawings beyond the drawing power / sanctioned limits.ii. Honoring of cheques issued for the purpose other than specifically stipulated in the sanction.iii. Drawings in an account once it is classified as NPA.iv. No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower.v. Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits.iv) Disbursement of loans including changes in terms & conditions a. The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement.b. Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes.c. Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower.v) Post disbursement supervision a. The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection.b. The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance / accelerate the payment / accelerate the performance under the loan agreement. Or seek additional securities.c. The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid / settledv) Others a. The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts, and scrutiny of QIS statements.b. In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest.c. While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending. d. In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power.e. In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.vi) Grievance Redresser Though the sanction of the loans will be at the sole discretion of the Bank, borrowers will have an opportunity to appeal against the decision of the Bank's functionaries. Any such grievance received from the borrower will be heard and disposed of by the next higher authority. For this purpose the following review structure is available to the borrower.

SWOT ANALYSIS OF HDFC BANKStrengths : -1. Right strategy for the right products.2. Superiorcustomer servicevs. competitors.3. Great Brand Image.4. Products have required accreditation.5. High degree of customer satisfaction.

Weakness : 1. Some gaps in range for certain sectors.2. Customer service staff need training.3. Processes and systems, etc4. Management cover insufficient.5. Sectoral growth is constrained by low unemployment levels and competition for staff

Opportunities : 1. Profit margins will be good.2. Could extend to overseas broadly.3. New specialist applications.4. Could seek better customer deals.5. Fast-track career development opportunities on an industry-wide basis.

Threats : -1. Legislation could impact.2. Great risk involved3. Very high competition prevailing in the industry.4. Vulnerable to reactive attack by major competitors.5. Lack of infrastructure in rural areas could constrain investment

Services & ChargesICICI Home Finance ensures that you get the best Home Loans in terms of interest rates and other facilities. You can choose from Adjustable, Fixed or Floating Rate Home Loan.ChargesHome Loans

Loan Processing Charges / Renewal Charges0.5% to 1%

Prepayment Charges

2%ontheprincipal outstandingonfull prepayment

Charges for late payment

2% per month

Charges for changing from fixed to floating rates of interest

1.75% on principal outstanding

Charges for changing from floating to fixed rates of interest

1.75% on principal outstanding

Cheque Swap Charges

Rs. 500/-

Document Retrieval Charges

Rs. 500/-

Cheque bounce charges

Rs. 200/-

Note : Service Tax and other taxes, levies, etc. applicable as per prevailing rate will be charged over and above these charges. Repayment Terms of your Home LoanIn our endeavor to make taking a home loan an easy process for you, we at ICICI Bank Home Loans address all your queries about the repayment terms of Home Loans with respect to tenure, home loan EMIs, methods of home loans EMI payments and pre-EMI interest. What is the repayment tenure?

How is the loan repaid?

What is an EMI?

When does the repayment start?

How is the EMI paid?

What if a PDC bounces?

What is pre-EMI interest?

When do I pay PEMIs?

What is the repayment tenure?Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of the loan. You can take a home loan for up to 25 years provided you do not reach the age of 65 years or retire within that periodHow is the loan repaid?All loan repayments are done via equated monthly installments (EMI).What is an EMI?An EMI refers to an equated monthly installment. It is a fixed amount whichyou pay every month towards your loan. It comprises of both, principal repayment and interest paymentWhen does the repayment start? EMI payments start from the month following the month in which the full disbursement has been madeHow is the EMI paid? The EMI is to be paid every month through post-dated cheques (PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36 PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, we provide the flexibility of dating the cheques for the 10th of the month. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit.

What if a PDC bounces? In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 - 7 working days. What is pre-EMI interest?In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

When do I pay PEMIs?

The first PEMI is payable by cheque by the end of the month in which the disbursement is made and each subsequent PEMI at the end of every month till the commencement of EMI. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit.COMPARE HOUSING LOAN OF DIFFERENT BANKSLoan ProviderRates of InterestLoan AmountLoan Duration

9.5%100000 - 20000001 - 5 Yrs

9.5%

100000 - 20000001 - 5 Yrs

9.75%

10000 - 1500000

1 - 5 Yrs

9.75%

100000 - 20000001 - 5 Yrs

10.5%100000 - 50000001 - 5 Yrs

10.5%100000 - 200000001 - 5 Yrs

10.5%100000 - 100000001 - 5 Yrs

10.5%100000 - 100000001 - 5 Yrs

11.0%100000 - 20000001 - 5 Yrs

11.0%100000 - 100000001 - 5 Yrs

11.25%200000 - 100000001 - 5 Yrs

11.5%100000 - 20000001 - 5 Yrs

11.5%100000 - 100000001 - 5 Yrs

12.0%100000 - 100000001 - 5 Yrs

RESEARCH METHODOLOGYAccording to Green and Tall A research design is the specification of the methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates which information is to be collected, from where it is to be collected and by what proceduresThis research process based on primary data analysis and secondary data analysis will be clearly defined to meet the objectives of the study. I chose the primary sources to get the data. A questionnaire was designed in accordance with our mentor in SAMSUNG . I chose a sample of about 45 corporate customers around the Sagar City from which I can get the instant information of whose analysis will give me the desired outcome of my research project. I collected some data from the secondary sources like published Company documents, internet etc.

Research DesignA research design is the arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures. It is a descriptive cross sectional design .It is the conceptual structure with in which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.It is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money. In the preliminary stage, my research stage constituted of exploratory study by which it is clear that the existence of the problem is obvious .So, I can directly head for the conclusive research. Sampling PlanSampling plan is a distinct phase of research process. In this stage I have to determine who is to be sampled, how large should be the needed sample and how sampling unit is to be selected.PopulationIn my research, I have defined my population as a complete set of customers of Sagar CitySample SurveyAs compared to census study, a sample study has been conducted by us because of: Wide range of population, it was impossible to cover the whole population Time and money constraints.Sample UnitIn this survey I took the list of customers from the dealers of SAMSUNG in Sagar City.Sampling Technique Sampling technique implies the method of choosing the sample items, the two methods of selecting sample are: Probability method. Non-probability method.Probability method is those in which every item of the universe has an equal chance of the inclusion in the sample. Non-probability methods are those that do not provide every item in the universe with known cause of being included in the sample. The selection process is partially subjective.For my study, I employed the Non-probability sampling technique, in which I got the data of the customers from the dealer of SAMSUNG in Sagar City Instrument of collection of dataI have used one set of questionnaire to collect data from the customers. This questionnaire is structured and highly ordered. This includes both close ended and open ended questions. The close ended questions included both dichotomous and multiple choice questions.Data analysis and interpretations Large volumes of raw data were collected through questionnaires in my research study. This raw data has been further converted into significant statistical information before further interpretation so that I can answer my research objective well. The collected raw data was then edited and coded by the researchers to eliminate errors and to assign data to pertinent categories. The data was then tabulated and presented with the help of bar diagrams and pie charts.

LIMITATION

Although best of the efforts were made to conduct a prefect survey but still it faces certain limitation. Following were certain limitation of this project.

1. Some of the respondents did not aware the terms and condition of home loan schemes. 2. Some of the respondents did not answer all the questions. This could hamper the final results to a certain extent.3. We had limited time for conducting this survey report.4. The study confines itself to the respondents of BILASPUR only. Hence findings would not be relevant to other cities.5. People mind set about the survey was an obstacle in acquiring complete information & positive interaction.6. Respondents were very busy in their schedule. So it was very time consuming for them to answer all the questions properly.

CHAPTER -7 Page no7.1 DATA ANALYSIS AND INTERPRITATION 50-68

1) If you are make or purchase your own home than are you like to take facility of Housing Finance?NO. OF RESPONDENT PERCENTAGE

YES3774%

NO1326%

TOTAL50100%

Interpretation The above column chart depicts that 74% person are taking home loan and only 26% are not taking home loan.

2) If yes, Which Housing Finance Bank you chose?

NO. of respondent %

ICICI924%

HDFC1438%

PNB616%

SBI719%

OTHER13%

TOTAL37100%

Interpretation

Total number of respondent was 3724% person is chose ICICI bank 38% people are chose HDFC bank16% person is chose PNB bankAnd, 19% people are chose SBI bank

3) Are you aware all terms and conditions of home loans?NO.%

YES2465%

NO1335%

TOTAL37100%

InterpretationTotal Number of Respondents was 37.Many of persons know all terms and conditions of home loan i.e. 65%.35% persons had not know properly about all terms and conditions

4) How do you come to know about the home loan schemes of that bank?NO.%

NEWSPAPER822%

TELEVISION616%

INTERNET1130%

OTER RESOURCES1232%

TOTAL37100%

Interpretation

Total Number of Respondents was 3722% persons came to know from newspaper16% persons came to know from television30% persons came to know from internet32% persons came to know from other resource

5) Your bank offer which type of services?

NO.%

MOBILE BANKING1438%

NET BANKING1232%

FOREX BANKING00%

OTHER1130%

TOTAL37100%

Interpretation38 persons said that bank offer mobile banking services.32 said that bank offer net banking services.30% said that bank offer other services.And no one said that bank offer forex banking services.

6) According to you which of the following banks provides optimal or economical interest rate?

NO.%

ICICI822%

PNB822%

HDFC1643%

SBI514%

TOTAL37100%

INTERPRETATION

The above graph shows that according to the 43% of total sample size, HDFC provides the optimal/economical interest rate. The next preference is given to ICICI and PNB was providing the optimal interest rate. i.e. 22% And only 14% of the respondent preferred SBI.

7) Which feature of your scheme satisfied you to take it?

NO.%

LOW INSTALLMENT1746%

MAXIMUM TIME PERIOD1335%

HIGH INSTALLMENT411%

NOTHING38%

TOTAL37100%

INTERPRETATION

The above graph shows that according to the 46% respondent satisfy, lower installment. 35% was satisfy maximum time period, 11% was satisfy high installment And only 8% of the respondent not satisfy any feature of loan schemes.

8) How would you rate the overall quality of your relationship with banks of housing finance considering all of your experiences with them? Would you say it is.NO.%

VERY GOOD719%

GOOD1849%

FATR1232%

POOR00%

TOTAL37100%

INTERPRETATIONAccording this chart, mostly 49% respondent rate the overall quality of your relationship with banks of housing finance good 32% are fair, 19% very good and no one rate in poor.

9) On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied How would you rate your level of satisfaction with banks of housing finance in regards to price?NO.%

EXCELLENT514%

VERY GOOD924%

FAIR2259%

POOR13%

TOTAL37100%

INTERPRETATIONMostly 59% respondent level of satisfaction is fair regarding to price, 24% rated in very good, 14% rated in excellent, and only 3% rated in poor .

10) In the case of suitability of EMI, which bank would you prefer?

NO.%

ICICI822%

SBI616%

HDFC1540%

PNB822%

TOTAL37100%

INTERPRETATIONThe above graph shows that according to the 40 percentage of total sample size, HDFC provides suitable EMI. The next preference is given to ICICI and PNB has received the third preference for providing suitable EMI. And only 16 percent of the sample preferred SBI.

11) Are you satisfy by the time taken in sanctioning the loan?

NO.%

YES2568%

NO1232%

TOTAL37100%

Interpretation:-

Total Number of Respondents was 37.68 %persons are satisfied by the time taken32% persons are not satisfied by the time taken

12) And, IN case of long term which bank would you choose?

NO.%

ICICI822%

SBI822%

PNB616%

HDFC1540%

TOTAL37100%

Interpretation:-

The above chart depicts that maximum number of people has preferred HDFC bank for long term loans and 22 percent of people has given preference to ICICI & SBI and only 16% has given preference to PNB.

13) Have you face any difficulty during taking the loan?

NO.%

YES1027%

NO2773%

TOTAL37100%

Interpretation

Total Number of Respondents was 37.27% persons face difficulty during taking the loan.73% persons does not face any difficulty during taking the loan

14) Are you agree with the after home loan services provided by your bank are best as compare to other bank?

NO.%

STRONGLY AGREE411%

AGREE2773%

DISAGREE616%

STRONGLY DISAGREE00%

TOTAL37100%

Interpretation

Total Number of Respondents was 37.11% among all consumers are strongly agreed by after sale services of the bank.73% among all consumers are agreed by after sale services of the bank16% among all consumers are disagreed by after sale services of the bank0 among all consumers are strongly disagreed by after sale services of the bank.

15) On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied, Did you think the processing system is?NO.%

EXCEELLENT514%

VERY GOOD1335%

GOOD1232%

AVERAGE719%

TOTAL37100%

Interpretation

Total number of respondent was 37.35% said processing services is very good.32% said processing is good.19% said average and only 14% said excellent.

16) How likely are to recommend which bank of housing finance to a friend or relative ?

NO.%

ICICI719%

HDFC1541%

SBI924%

PNB616%

TOTAL37100%

Interpretation

41% people recommend HDFC bank of housing finance to a friend or relative, 24% are SBI, 19% ARE ICICI and only 16% are recommended PNB.

17) Which grade you want to give of home loan schemes of your bank?

NO.%

EXCELLENT719%

GOOD2157%

AVERAGE924%

BELLOWS AVERAGE00%

TOTAL37100%

Interpretation

Total Number of Respondents was 37.19% persons give excellent grade of the bank.57% persons give good grade to the bank.Only 24% persons give average grade to the bank.No one give below average grade to the bank

18) According to you , which positive aspect is playing more significant role in success of housing finance banks?

NO.%

SALES PROMOTION616%

COSTOMER FRENLYNESS 822%

LOWER INTEREST RATES1232%

LOWER EMIS38%

EASY LOAN SANCTIONING822%

TOTAL37100%

Interpretation The above graph depicts that 32% said Lower interest rates are the main aspect for the success of housing finance. 22% said customer friendliness and easy loan sanctioning. 16% said sales promotion and branding. And only 8% said lower EMIS is positive aspects.

19) any suggestion that you want to give..

NO.%

Give well services to customer1550

loan sanction time period 517%

Reduce interest rates1033%

Sales promotion00

30100%

INTERPRITATION

Total respondent in suggestion is 30. According to this graph 50% people said give well services to customer a,17 % said for time period, 33% said reduce interest rates, and no one said for sales promotion.

CHAPTER 6

Page no.SUMMARY OF FINDINGS 70

SUMMARY OF FINDING

1) According to this project report 74% interested in housing finance.2) 38% people like to take HDFC bank home loan. Because this bank give well services.3) I am finding in this project serve more bank use new technology like: internet banking, mobile banking, and forex banking.4) According to this serve customer satisfied low installment schemes of bank.5) 72% people did not face any difficulty during takingthe loan6) Mostly people recommended HDFC bank of hosing finance.

CHAPTER-7 Page no.

7.1 RECOMMENDATION AND CONCLUSION 72

RECOMMENDATION

1. There is more time period for repayment of home loan.2. Housing finance institution take steps to solve customer problems immediately.3. Loan sanction date should be according to customer convenient.4. A customer awareness program should be taking place in rural area.5. Housing finance bank take feedbacks of customers regarding features & services6. For the better service new offers would be require.7. Bank should give all information related to terms and condition.8. To make people aware about the benefit of becoming Housing finance Banks Sales Executive, following activities of advertisement should be done through9. Print Media.10. Hoarding & Banners. 11. Distribution of leaflets containing details information12. Make people understand about the various benefits of its products..

CONCLUSIONHousing is a growing industry. Various public and private institutions have entered in this field. These institutions have initiated various house financing schemes to cater the diversified needs of this sector. Besides the emerging and expanding institutional set up, the system of credit delivery of housing is still inadequate. The responsibility to provide house finance largely was rested with the Central Government till the early eighties. The setting up of the NHB in 1988, as the apex housing finance institution, was the beginning of the emergence of housing finance as a fund based financial service in the country. Its role fall into three categories promotional, financial and regulatory. Housing finance institutions must become self sustaining units which work on full cost recovery basis and device innovative financial instruments to mobilize their resources from household sector.

CHAPTER-8

8.1 BIBLIOGRAPHY

BIBLIOGRAPHY

Internet

Catalogs

Research Methodology -C.R.Kothari.

QUESTIONNAIRE

Dear respondant,As a part of mba curriculum, i am conducting a studyon " analysis of housing finance schemes of hdfc bank, icici bank, pnb & sbi bank". You are requested to please cooperate by providing relevant information. I assure you that information will kept confidential and will be used for study purpose only.Thank youyours faithfullysmita jaiswal

NAME---------------------------------------------------------------------------------AGE-----------Nationality-----------------------Income------------------------Contact number--------------------------------,Address---------------------------------------------------------------------------------------------------------------------------------------- What is your occupation? Business man Government employee House wife Student Other1) If you are make or purchase your own home than are you like to take facility of Housing Finance?A. Yes B. No 2). If yes Which Housing Finance Bank you chose ? A. ICICI Bank B. HDFC BankC. Punjab national bank D. SBI bankE. otherProcessing fee: 1 % 3) Are you aware all terms and conditions of home loans?

A. Yes B. No

4) How do you come to know about the home loan schemes of that bank?

A. News paper B. TelevisionC. Internet D. Other resources5) Your bank offer which type of services?A. Mobile banking B. Net bankingC. Forex banking D. Other6) According to you which of the following banks provides optimal or economical interest rate? A. ICICI B. PNB C. HDFC D. SBI Interest type: Floating Category: Floating Eligibility: Salaried Annual Income Rs120000 Age Min.: 25 Yrs. Max.: 55 Yrs. Documents Required: ID Proof Yes Residence Proof Yes Income Proof Yes Telephone Yes Photograph Yes Bank Statement Yes Signature Proof Yes 7) Which feature of your scheme satisfied you to take it ? A. Low installment B. Maximum time period C. High installment amount D. Nothing8) How would you rate the overall quality of your relationship with banks of housing finance considering all of your experiences with them? Would you say it is. A. Very good B. Good C. Fair D. Poor9) On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied How would you rate your level of satisfaction with banks of housing finance in regards to price? A. Excellent B. Very good C. Good D. Poor 10) In the case of suitability of EMI, which bank would you prefer? A. ICICI B. SBI C. HDFC PNB11) Are you satisfy by the time taken in sanctioning the loan? A. Yes B. No12) And, IN case of long term which bank would you choose? A. ICICI B.SBI C.PNB D.HDFC

13) Have you face any difficulty during taking the loan? A. Yes B. No

14) Are you agree with the after home loan services provided by your bank are best as compare to other bank?A. Strongly agree B. Agree C. Disagree D. Strongly disagree

15) On a scale of 1 to 5 where 1 represents extremely dissatisfied and 5 represents extremely satisfied, Did you think the processing system is?A. Excellent B. Very GoodC. Good D. Average16) How likely are to recommend which bank of housing finance to a friend or relative ? A. ICICI B.HDFC C. SBI D. PNB17) Which grade you want to give of home loan schemes of your bank? A. Excellent B. Good C. Average D. Bellows average18) According to you , which positive aspect is playing more significant role in success of housing finance banks? A. Sales promotion & brand B. Customer friendly home loan schemes C. Lower interest rates D. Lower EMIs E. Easy sanctioning of the home loan 19) Any suggestion that you want to give

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