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Submitted to:
Mr. Gurpreet Walia
Branch Sales Manager
ICICI Home Finance Co. Ltd.

Submitted by:

Perfect is a famous saying and when a person gets practical

experience under the guidance of experts of the respective field, the
knowledge gained is priceless.
With a sense of great pleasure and satisfaction, I present this project

DIFFERENT BANKS IN NCR” completing a task successfully is

never a one-man effort. Similarly completion of this report is a result of
invaluable support and contribution of number of people in direct and
indirect manner.

In the light of the foregoing, first of all my heartfelt gratefulness and

thanks goes to Mr. VIRENDRA as a team manager of ICICI HOME
FINANCE sec-18, Noida for giving me the opportunity to work for his
highly esteemed organization and for being a constant source of
inspiration and guidance throughout the Project. Without his able
support the project would not have seen the light of the day.

At this juncture, I would also like to thanks Mr.YOGESH BHATIYA

indispensable cooperation the project won’t have been completed
within the stipulated timeframe.

Finally, I would like to thank all the people, without whose insights and
opinions, this project would have been impossible.

1. Introduction
2. Objective
3. Company Profile
4. Industry Scenario
5. Analysis of Different Banks
6. Comparison of Homesaver with Normal Home Loans
7. Comparative analysis of Home Loan and Home Saver
8. Research Methodology
9. Data Analysis
10. SWOT Analysis
11. Conclusion
12. Recommendation
13. Bibliography

The objective of this research is to analyse the home loans with a view
to arrive at the most popular loan schemes offered by the banks in
National Capital Region under study and to conclude from the analysis
the best possible schemes which would keep the bank ahead of

The purpose of the study is to find the critical factors that are
essential for any housing loan to become the most favored scheme in
the Indian scenario. The reasons being the features that the scheme
provides are not being provided by many of the housing finance

A roof over one's head and ground beneath one's feet count as the
bare necessities of life. There’s nothing quite like owning a home,
however humble, to give one that warm and glowing feeling. But
when one buys a home, one has much more than a feel-good
purchase in mind: it’s also a crucial investment decision, perhaps
the biggest spending decision of one's life. There are ample
opportunities today for young salaried investors to plan their
moves early and buy a house at the right time — and at the right
price. In the process, not only do they fulfill that cherished dream
of owning a house, but also put themselves on the path to
acquiring property that would meet the needs and aspirations of
their growing family, even as it leads to wealth creation. Every
individual aspires to own a home. But many either spend a
lifetime saving to purchase a house or exhaust money on monthly
house rents.

Take a house loan and let the monthly rent (easily converted
into affordable EMIs) build dream home .

Profitable Proposition
“The overall demand in the residential sector has grown by about
7-8 per cent in the past few months as compared to the same
period last year. The growth is on account of two main factors:
 One , income-tax exemption;

 Two , with no similar rebates available for individuals in the

high-income group, they are creating a second asset.

Add to this the stable property prices over the last year and
plunging interest rates, planning for dream home could not have
been better timed. Rock-bottom interest rates, standardization of
the periodicity of interest calculation across lenders (which makes
it easier to compare loans), lower
interest charges, waiver of loan application processing fees and, a
customer-friendly attitude is reason enough to celebrate the
ascension of the home loan consumer as the king.
In response, private players like ICICI Bank , IDBI Bank ,
Standard Chartered Bank and a few others too lowered their
rates. Market leader HDFC also brought down its interest rates to
8.0%, very recently, to participate in the interest rate war. If one is
still not satisfied with the lowered loan rates, there’s more. Some
industry watchers believe the floating home loan rate will slip to 8
per cent for long-term loans in another two to three years.

Most banks have changed the way interest is calculated from

annual rests to monthly rests. Under the annual rests method, the
EMIs (equated monthly installments) one pays through a year are
factored in as part-repayment of the principal component only at
the end of each year. In other words, one has to pay interest even
on the installments one has paid until they’re reduced from the
principal at the end of each year. Under monthly rests, the
principal is lowered by the appropriate amount each month. The
thumb rule being that the more frequently interest is calculated,
the better for the creditor. Recently, HDFC added monthly rests
on its fixed-interest loans apart from annual rests. As a result, the
fall in EMIs on fixed-interest loans (where the interest rate is
constant for the entire tenure of the loan, irrespective of changes
in the lending rates) is more pronounced than on floating-rate
loans (where the loan interest rate varies with changes in the
interest rates). For example, the EMI on a 15-year, fixed-interest
loan for Rs 15 lakhs has come down by Rs 840; the corresponding
fall in the EMI on a floating-rate loan is only Rs 465. Apart from
lowering the cost of one's loan, the switchover to monthly rests
has another advantage: it makes it easier to compare loans.


-consumer friendly housing finance company

ICICI Home Finance Company Limited was incorporated on May 28, 1999
as 100% subsidiary of ICICI Personal Financial Services Limited (ICICI
PFS). ICICI Home Finance Company Limited, was set up with the objective
of providing long term housing loans to individuals and corporate. The
Company was registered on March 30, 2000 with National Housing Bank
(NHB) under National Housing Bank Act, 1987 in terms of Housing Finance
Companies (NHB) Directions, 1989. With effect from May 3,2002, ICICI
Home Finance has become a 100% subsidiary of ICICI Bank Limited.
ICICI Home Loans are at present available to customers in 150 cities/towns
across the country. Loans are offered for purchase of new homes, purchase of
resale homes and home improvement. Besides, the company also offers loans
for commercial property and loans against existing property. The loans are
offered for tenors up to 30 years. The company has also introduced several
customer friendly services such as 'door-step' service, 'know your loan on
phone' facility and 'ICICI Home Search' - free property brokerage services.
ICICI Personal financial services limited (ICICI PFS),
FORMERLY ICICI- CREDIT, was one of the first four
companies to obtain registration as a non-banking financial
company (NBFC) from the Reserve Bank of India (RBI) on
September 10, 1997 under the new section 45 IA of the Reserve
Bank of India Act, 1934.
During the year 1998-99, there was a significant shift in the
company’s operations from leasing and hire purchase to
distribution and servicing of all retail products for the ICICI
Group. It is now a focal point for marketing and distribution of all
retail asset products for ICICI, including auto loans, consumer
durable finance and other financial products. The company has
thus become a critical part of ICICI’S retail strategy aimed at
offering a comprehensive range of products and services to retail

In view of this reorientation of the business, the name of the

company was changed from ICICI CREDIT CORPORATION
LIMITED (ICICI PFS) effective March 22, 1999.

ICICI commenced its custodial services business in 1992 and

played a pioneering role in the business when it accepted the
custodian role for the first ever GDR issue by an Indian corporate
(Reliance Industries Limited). ICICI has a major market share in
the segment and acts as custodian of 41 ADR/GDR issues and, in
the process, has established relationships with all the major
overseas depository banks operating in the Indian Market. After
its success in the GDR segment, ICICI expanded its custodial
operations by offering custodial services to overseas institutional
investors including foreign institutional investors (FII’S) and as
on June 30, 1999, the value of assets held in our custody exceeded
US 2 billion.
At present, ICICI offers a full range of custodial services for
primary and secondary market operations pertaining to debt,
equity, money market instruments GDR/EURO issues conversions
and GDR arbitrage to:
1. Overseas Institutional Investors like
a. FIIs
b. OCBs
2. Overseas Govermental Agencies
3. Institutions looking for proprietary investments
4. Mutual funds
5. Private investment companies
6. Large corporate
7. High net worth individuals

As a value added service ICICI custodial services division assists

the clients in preparation, submission and follow up for various
applications for regulatory approvals including initial application
At ICICI BANK, they are commited to making banking a
pleasure. This commitment is manifested in the services they offer
– a wide range of accounts, investment schemes, and facilities.
Each service offers their customers security, flexibility of
operation and maximum returns. The various services provided
under this is as follows:
• Maxi Cash – savings Account
• Quantum – Fixed Deposits
• Quantum optima – Value added Savings Account
• Money plus – Current Account
• Phone Banking
• Treasure Chest – Locker facility
• Power Pay Payroll
• Retail Treasury Instruments

ICICI Bank now brings Bank Account and ICICI Credit Card to
customers fingertips. With Mobile Commerce , customers can
perform a wide range of query-based transactions from their
OrangeTM (MUMBAI) and AIRTEL (DELHI) Mobile Phone,
without even making a call.

• Access multiple accounts

• Balance enquiry to the linked accounts
• Cheque book requests
• Mini statement – Listing of last three transactions
• Request for account statements (by mail or fax)

Attractive interest rates
Door-step service from enquiry stage till final disbursement
No guarantor required
Can transfer your existing high-interest rate loan
Can transfer your existing high-interest rate loan
Special 100% funding for select properties

Home loan
• Customer must be at least 21 years of age when the loan
is sanctioned.
• The loan must terminate before or when you turn 65 years
of age or before retirement, whichever is earlier.
• Customer must be employed or self-employed with a
regular source of income.

Loan Amount
A number of factors are taken into account when assessing
repayment capacity. Customers income, age, number of
dependants, qualifications, assets and liabilities, stability/
continuity of customer employment/ business are some of them.
However, there are ways by which you can enhance your
• If cusstomer spouse is earning, put him/her as a co-
applicant. The additional income shall be included to enhance
loan amount. Incidentally, if there are any co-owners they must
necessarily be co-applicants.
• customer fiancée'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
submit proof of 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 customer with the necessary details.
The final amount to be sanctioned will depend on your repayment
capacity. However, what customer 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.

We at ICICI Bank understand the value of owning your own
home. Our affordable home loans can make all the difference to
their dream of owning home.
0% processing fee for a limited period.
Refer to the table for a loan option that suits their need best
Introducing Home Search - Our FREE online property search
facility. A one stop shop for all their real estate needs.

What you get

0% brokerage on first sale properties
Access the entire market under one roof
Site visits to properties short listed by you
Help in negotiating the best price
Help with legal documentation

Passport size photograph. Age verification: PAN card, Voters ID,
Passport, License. Bank statement for the last six months. Income
Documents e.g. Latest Form 16, Certified IT returns for latest 3
years. Processing Fee cheque. Loan Enclosure letter. These are the
documents required for sanctioning a loan. Customer may be
asked to submit further legal documents if required by ICICI or its
approved lawyers. Do retain photocopies of all documents being
submitted by them.

Customer loan will be disbursed after you identify and select the
property or home that customer are purchasing and on their
submission of the requisite legal documents.
While customer may be under the impression that the list of
documents asked for is rather extensive. Each and every single
document asked for will be verified and checked to ensure their

This may take some time but the bank want to ensure a clear title
and will complete all the legal and technical verifications to
ensure that they have full rights to their home.
The 230 A Clearance of the seller and / or 37I clearance from the
appropriate income tax authorities (if applicable) is also needed.
On satisfactory completion of the above, on registration of the
conveyance deed and on the investment of your own contribution,
the loan amount (as warranted by the stage of construction) will
be disbursed by ICICI.
The disbursement will be in favour of the builder/seller.
List of documents for disbursement

Standard documents:
Loan Agreements Disbursement Requests Post-dated cheques
Personal guarantor's documents, as the case may be adjustable
Rate Loans

Home Loans/Land Loans: Special offer - 0% processing fee

ICICI Bank Home Loans announces it's Special Interest
Rates.These interest rates are valid for new home loans for a
limited period only. The interest rate on these loans is linked to
the ICICI Home PLR and moves up or down with the ICICI Home
PLR The ICICI Home - PLR for ICICI Home Loans is currently
10.25% p.a.The EMI table for ARHL is given below:

Fixed Rate Loans

Home Loan: Special offer - 0% processing fee
ICICI Bank Home Loans has now brought Fixed Rate Home
Loans at par with Adjustable Rate Home Loans, starting from
January 17, 2003. The EMI table for Fixed Rate Home Loans is
given below:
Fixed rate

Tenure Rate of EMI per Lac

(yrs) Interest *

Upto 8.75% 2064


6 - 10 9.25% 1281

11 – 15 9.75% 1060

16 – 20 9.75% 949

21- 30 10.25% 897


• The interest rate is calculated on an monthly reducing

• 0%
• Processing Fee.
• No fee for part prepayment
Exhibit 2.3: Product Process Flow for Housing Finance

Application with processing fee submission

Credit Appraisal

Interview Checking with Verification with employer

Recommendation to the Sanctioning Authority

Sanction by

Letter to Reject


Acceptance Letter with Administrative fees

Legal title Documents review

Signing loan disbursement documents

EMI repayment Prepayment Penalty Charge

Listed below are the steps involved in availing of a home loan:

Step 1 A person applies for a home loan.

The executive meets the applicant and briefs him the
Step 2 entire loan process, requirements and the various options
The applicant chooses a Housing Finance Company
Step 3 (HFC) and hands over the income documents to the
The income documents are handed over to the HFC for
Step 4
eligibility and approval.
The HFC verifies the documents and checks the repaying
Step 5 capacity, saving habits, tenure of service, etc. of the
applicant and approves the loan amount.
After approval, an offer letter is given to the applicant by
Step 6 the HFC, along with a list of original property title
documents that have to be handed over to the HFC.
The applicant gives the original property title documents
Step 7
to the HFC.
The HFC scrutinises the legal and technical aspects of the
Step 8
original title documents.
If the HFC is satisfied as to the legal & technical aspects
Step 9 of the documents then the applicant is called to sign the
loan agreement.
The loan disbursement schedule is decided by the HFC
according to the stage of construction (if property under
Step 10
construction)or a one time payment is made if property is
ready for possession
Step 11 The applicant gets possession of the property depending
upon the level of completion of the property.
Step 12 The applicant starts paying the EMIs.


There are different types of home loans tailored to meet ones
needs. Here’s are some of them:
Home Purchase Loans : This is the basic home loan for the
purchase of a new home.
Home Improvement Loans : These loans are given for
implementing repair works and renovations in a home that has
already been purchased by the client.

Home Construction Loan : This loan is available for the

construction of a new home.

Home Extension Loan: This is given for expanding or extending

an existing home. For eg: addition of an extra room etc.

Home Conversion Loan: This is 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: This loan is available for purchase of land

for both construction or 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.

This largely depends on a number of factors like ones age,
profession, salary, the city one resides in among other such
factors. It varies between Rs. 2.1 lac to Rs. 1 crore depending on
the lender. As a rule of thumb, depending upon the HFC, one will
have to cough up 15%-20% of the loan amount as a down
payment. For smaller amounts, this may not be much. But for
figures running into lakhs, this could make loads of difference.
For eg. An apartment costing Rs 10 lakh may get 85 per cent
financing. So, one will have to arrange for the remaining Rs 1.5
lakh. If one takes this into account, the additional thousands will
definitely put a strain on ones finances.

Generally, the maximum tenure of home loans is 15 years, with a
few lenders offering tenure of 20 years or more (ICICI has
recently launched a 30 year loan). The longer the tenure, more one
pays in total interest, but ones monthly payments will be less. So
depending on ones earning potential and bank balance, one can
choose an appropriate tenure. An important requirement of most
banks/HFCs is that one pays up the entire loan before one retires.
One can always prepay ones entire loan amount before it is due.
There is a trend to do away with the pre-payment penalty being
imposed by some lenders so its best one checks on this as well.

Interest Rate
Without doubt the most important parameter to factor into ones
calculations. The interest rates may vary from institution to
institution and generally range from about 7.0% to around 8.0%.
Repayment is in the form of EMI's (equated monthly
installments). The longer the tenure, the more one pays in interest,
but ones monthly payment will be less.

This is a concept that is yet to catch on in the home loan market
but is bound to be a major service in the months to come. Under
this facility, one can take a new loan from another bank/HFC to
pay back an old loan before its natural tenure. It gives one the
opportunity of prepaying ones high cost debt and gets a lower cost
one. In today's falling interest rate scenario one should use this
vehicle to lower ones debt payments as much as possible. The
lender facilitates the shift by paying the outstanding and
transferring the asset to their portfolio.

Miscellaneous charges
A heading that should be ignored at one’s peril! The interest rates
and EMIs are not the only cost factor. Never underestimate how
much the processing and administration fees amount to. A 0 .5%
administration fee and a 0.5% processing fee on, say, a Rs
5,00,000 loan, would amount to Rs 5,000. Other times, it could be
just one fee (either administration or processing) but could yet
work out to be much more if it is considerably higher at, say, 2.5
per cent or 3 per cent. The various other fees, which one is
required to pay along with the margin amount, are:
a) Interest Tax
This is the tax payable on the interest paid on a home loan and not
the principal. This tax is some times included in the interest rate
of the loan, or may be charged separately as interest tax.

b) Processing Charge

It's a fee payable to the lender on applying for a loan. It is either a

fixed amount not linked to the loan or may also be a percentage of
the loan amount. The loan amount received by you can be less
than the processing fee.

c) Prepayment Penalties
When a loan is paid back before the end of the agreed duration a
penalty is charged by some banks/companies, which is usually
between 1% and 2% of the amount being pre paid.

d) Commitment Fees
Some institutions levy a commitment fee in case the loan is not
availed of within a stipulated period of time after it is processed
and sanctioned.

e) Others
It is quite possible that some lenders may levy a documentation or
consultant charge.

The housing finance industry , encompassing banks and housing

finance companies (HFCs), has exhibited a 36 per cent growth
between April and December 2004 despite the high prepayment
levels experienced by some HFCs.

Were it not for prepayments, the industry's outstanding assets

would have grown at a higher 43 per cent. Aggressive marketing
efforts of banks and HFCs have further precipitated this trend.

Banks have an inherent advantage in retail finance, especially in

housing loans, because of the lower cost of funds, existing retail
relationships in liability products and large branch network.

It is expected that banks will further increase their market share in

the housing finance sector in the medium term.

It is also expected that the housing finance sector will maintain its
high growth rates in future given that the key growth drivers the
government's thrust on the housing sector in terms of fiscal
incentives for individual housing loans coupled with the demand-
supply gap in housing - would remain strong.

Standard Chartered is the world's leading emerging markets bank.
It employs 27,000 people in over 500 offices in more than 50
countries in the Asia Pacific Region, South Asia, the Middle East,
Africa, United Kingdom and the Americas.

The Bank serves both Consumer and Wholesale banking

customers. The Consumer Bank provides credit cards, personal
loans, mortgages, and deposit taking activity and wealth
management services to individuals and medium sized businesses.
The Wholesale Bank provides services to multinational, regional
and domestic corporate and institutional clients in trade finance,
cash management, custody, lending, foreign exchange, interest
rate management and debt capital markets.

With nearly 150 years in the emerging markets the Bank has
unmatched knowledge and understanding of its customers in its

Standard Chartered recognises its responsibility lies to its staff

and to the communities in which it operates.

A brief history of Standard Chartered

Standard Chartered is the world's leading emerging markets bank
headquartered in London. Its businesses however, have always
been overwhelmingly international. This is summary of the main
events in the history of Standard Chartered and some of the
organisations with which it merged.

The early years

Standard Chartered is named after two banks, which merged in
1969. They were originally known as the Standard Bank of British
South Africa and the Chartered Bank of India, Australia and
China. Of the two banks, the Chartered Bank is the older having
been founded in 1853 following the grant of a Royal Charter from
Queen Victoria.

Standard Chartered Bank – Vision and Strategy

Standard Chartered Bank has been established for over 140 years.
Its spans the developed and emerging economics of the world with
a network of over 500 officers in more than 40 countries.

With a mission to build a world class bank, Standard Chartered

has adopted the strategies of:
· Building a world class business: Focus on core business,
provide superior customer service, and generate maximum returns
and benefits for shareholders.
· Staying lean and focused: Is vest in core business, optimal
usage of resource, and manage performance by balancing cost
and risks.
· Recognised as a winning organization: Develop capability to
the fullest, instill global thinking, and inject of pride in to people
to get connected to Standard Charted Bank.
Standard Chartered in the 1990s
Even within this period of apparent retrenchment Standard
Chartered expanded its network, re-opening in Vietnam in 1990,
Cambodia and Iran in 1992, Tanzania in 1993 and Myanmar in
1995. With the opening of branches in Macau and Taiwan in 1983
and 1985 plus a representative office in Laos (1996), Standard
Chartered now has an office in every country in the Asia Pacific
Region with the exception of North Korea. In 1998 Standard

Chartered concluded the purchase of a controlling interest in

Banco Exterior de Los Andes (Extebandes), an Andean Region
bank involved primarily in trade finance. With this purchase
Standard Chartered now offers full banking services in Colombia,
Peru and Venezuela. In 1999, Standard Chartered acquired the
global trade finance business of Union Bank of Switzerland. This
acquisition makes Standard Chartered one of the leading clearers
of dollar payments in the USA. Standard Chartered also opened a
new subsidiary, Standard Chartered Nigeria Limited in Lagos,
acquired 75 per cent of the equity of Nakornthon Bank, Thailand;
and agreed terms to acquire 89 per cent of the share capital of
Metropolitan Bank of the Lebanon.

Today-Standard Chartered
Today Standard Chartered is the world's leading emerging markets
bank employing 30,000 people in over 500 offices in more than 50
countries primarily in countries in the Asia Pacific Region, South
Asia, the Middle East, Africa and the Americas.
The new millennium has brought with it two of the largest
acquisitions in the history of the bank with the purchase of
Grindlays Bank from the ANZ Group and the acquisition of the
Chase Consumer Banking operations in Hong Kong in 2000.

These acquisitions demonstrate Standard Chartered firm

committed to the emerging markets, where they have a strong and
established presence and where they see their future growth.

At Standard Chartered they are committed to the communities and

environments in which they operate. Their Operations are focused
on the emerging markets and they believe that with appropriate
policies and
practices in place they can be a legitimate influence for good by
promoting the highest standards of responsible business.


• A revolutionary home loan that gives the customer the
potential to save thousands of Rupees in interest on home
• Lets the customer make additional deposits to reduce the
loan outstanding, without any penalties.
• Lets use the surplus funds in the account to invest when the
right opportunity arises.
• Finally, a home loan that easy access to surplus funds every
day, 24 hours a day through a globally valid ATM-cum-
Debit card
At Standard Chartered, recognize that owning a home is a very
important goal, and probably the largest investment in a lifetime.
That's why the company has created Home Saver.

Home Saver is a revolutionary new concept in home loans

designed to save interest thereby letting to pay off loan faster.

Here's how one can enjoy the Home Saver advantage

Every month, all the customer need is to do is deposit surplus
funds, be it there salary or other savings into Home Saver, instead
of letting them lie idle in different accounts. All this money then
works towards reducing there interest payable because the
deposits automatically reduce the balance outstanding on which
the interest is calculated on a daily basis.
So, more the number of days one place into HomeSaver, greater is
the interest saving!

What's more, the customer continue to have total access to these

funds 24 hours a day through the globally valid ATM-cum-Debit

Unique Features
• Freedom to save more
• Freedom to reduce your loan period
• Freedom to take a break from EMI payments
• Freedom to access your money - anytime, anywhere
HomeSaver is currently available in Bangalore, Chennai, Delhi,
Kolkata, Mumbai and Pune.
All the customer have to do is to call Phone Banking or contact us
at any of their branches and they'll assist you with a better
understanding of the products and in taking care of the
Still deciding which home loan to take? Choose the one that
sets free.
• Terms, conditions and RBI regulations apply. All loans at
the sole discretion of Standard Chartered Bank.

Freedom to save more

With HomeSaver, there is more to save than a normal low-cost
home loan. Because interest is calculated on daily balances,
customer can reduce interest cost substantially even if surplus
savings are in the account for only a day. For each day that
outstanding balance reduces, one pay less interest for that day.
Since that's interest saved not earned, customer save on taxes that
would otherwise pay on interest earned!
HomeSaver gives the flexibility and freedom to make excess
payments so that you can reduce the duration of your loan
anytime, without penalties.
Only HomeSaver gives you the flexibility to defer your EMI
payment. So if at any time, you are faced with an emergency and
find it difficult to pay EMI, customer can take a payment
holiday* once every year- after the first year without any penalty.
You have the flexibility of depositing and withdrawing cash just
as you would with your normal bank account. HomeSaver comes
with a globally valid ATM-cum-Debit Card, which allows you
free* access to your money from over 2000 ATMs across the
country. Anytime, anywhere.

That's not all, customer also get a personalized cheque book,

Phonebanking and Internet banking - to add to the convenience of
banking with us.
The product is a combination of home loan and bank account that
helps reduce the interest and tenure of the loan. HomeSaver
allows the customer to pay back the home loan principal by
utilising the excess funds in the HomeSaver account. This reduces
the overall interest payment and the tenure of the loan.

The product allows customers to pool their salary, savings and

surplus funds lying in other accounts into HomeSaver that goes
towards reducing the balance principal outstanding. Since the
interest is calculated on daily outstanding balance, every rupee
kept in HomeSaver each day goes towards prepaying the loan that
helps the customers pay back the loan faster and save substantial

One of the key benefits of HomeSaver is that customers need not

consciously work towards making partial prepayment to reduce
interest on the loan. All deposits and excess money lying in
HomeSaver account would automatically be used to reduce the
balance outstanding. At the same time,
customers would continue to enjoy the flexibility and liquidity of
a normal bank account.

Further, the customers also enjoy the privilege of taking a

payment holiday on their equated monthly instalment (EMI) once
a year after the first year for any loan taken under HomeSaver.

This would allow the customer the flexibility to tide over a tight
financial situation without having to pay a penalty for skipping an
EMI. "This is a feature again unique to HomeSaver and not
provided by any traditional home loan,".

HomeSaver offers an opportunity to maximise savings whilst

providing flexibility and convenience to manage personal finances
more efficiently. Customers can pool their salary, savings and
surplus funds lying in other accounts ultimately reducing the
balance principal outstanding.

As the interest is calculated on a daily outstanding balance, funds

kept in the account go toward pre-paying the loan, rather than the
interest component, helping customers pay back faster and save
substantial interest, the bank claims.
The HomeSaver account further offers the same liquidity and
flexibility of a normal bank account and comes with an ATM -
cum- debit card and chequebook facility.
A customer can save up to 43 per cent or more on the interest
component depending on the deposits maintained by him in the
account. Loans from other institutions can be balance transferred
to this account at a cost of 1 per cent of the outstanding loan

The Housing Development Finance Corporation Limited (HDFC)

was amongst the first to receive an ‘in principle’ approval from
the Reserve Bank of India (RBI) to set up a bank in the private
sector, as part of the RBI’s liberalization of the Indian Banking
Industry. It was incorporated in August 1994 in the name of
‘HDFC Bank Limited’ , with its registered office in Mumbai.
HDFC began operations as a Scheduled Commercial Bank in
January 1995.

About the Promoter

HDFC, the promoter, is India’s premier housing finance company
and enjoys an impeccable track record in India as well as in
international markets.

Since its inception in 1997, HDFC has maintained a consistent

growth in its operations and profitability and over the past 5 years
has achieved annual growth rate of 25 – 30 %.

Its outstanding loan portfolio covers over a million dwelling units.

HDFC has developed significant expertise in retail mortgage loans
to different market segments and also has a large corporate client
base in relation to its housing related credit facilities and its
investment portfolio.
With its tremendous brand equity, strong reputation in the Indian
and international financial services market, large shareholder base
and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment. HDFC (together with
its fully owned subsidiary HDFC Investments Ltd.) owns about
31% of the equity.

They had started with a strategic alliance with the NatWest group
in UK with 20% equity, which was divested later on. The bank
also signed a memorandum of understanding for strategic business
collaboration with the Chase Manhattan Bank in February 2
Business Philosophy
The mission of HDFC Bank is to be world class Indian bank. This
would imply a bank that would meet various financial needs of its
customers in a convenient and cost effective manner at
international standards of service.
The bank seeks to achieve the status of a "preferred organization"
among its major constituents- customers, shareholders, regulators,
employees, suppliers etc.-while maintaining the highest levels of
integrity and corporate governance.

The business philosophy at HDFC Bank is based on four core

values :Operational Excellence, Customer Focus, Product
Leadership and People.
Bank faces strong competition in all of their principal lines of
business. Their primary competitors are large public sector banks,
other private sector banks, foreign banks and, in some product
areas, non-banking financial institutions.

Wholesale Banking: Principal competitors in wholesale banking

are public and new private sector banks as well as foreign banks.
The large public sector banks have traditionally been the market
leaders in commercial lending. Foreign banks have focused
primarily on serving the needs of multinational companies and
Indian corporations with cross-border financing requirements
including trade, transactional and foreign exchange services,
while the large public sector banks have extensive branch
networks and large local currency funding capabilities.

Retail Banking: In retail banking, their principal competitors are

the large public sector banks, which have much larger deposit
bases and branch networks, other new private sector banks and
foreign banks in the case of retail loan products. The retail deposit
shares of the foreign banks is quite small by comparison to the
public sector banks, and have also declined in the last five years,
which we attribute principally to competition from new private
sector banks. However, some of the foreign banks have a
significant presence among non-resident Indians and also compete
for non-branch-based products such as auto loans and credit cards.
They face significant competition primarily from foreign banks in
the provision of debit cards and also expect to face competition
from foreign banks when we begin offering credit cards. In mutual
fund sales and other investment related products, their principal
competitors are brokers and foreign private banks.

Treasury: In treasury advisory services for corporate clients, they

compete principally with foreign banks in foreign exchange and
derivatives trading, as well as the State Bank of India and other
public sector banks in the foreign exchange and money markets

HDFC Bank brings you a wide range of loans to cater your
financial needs.
The bank offers the following loans-
· Personal Loans
· Consumer Loans
· Auto Loans
· Loans against shares
· Loans against RBI Bonds
· Loans against Insurance policy
. E-instant loans-gives the facility of loan approval in 60
seconds on the internet.

HDFC has offices spread all over the country. This extensive
network helps HDFC in providing service to large and well spread
out clients. This network of interconnected offices (on Data
Circuits) helps HDFC to process applications for purchase of
property anywhere in India. HDFC has further established an
office in Dubai and Service Associates in Kuwait, Oman and
Qatar to make it easier for Middle East based Non-Resident
Indians to apply for a loan to HDFC - India.
HDFC is the pioneer of housing finance in India and has been a
leader in the business for the last 23 years. HDFC has vast
experience and a very committed and skilled staff to handle
housing loan applications and solving customer problems.


HDFC Ltd. offers loans for the following purposes:
• Land Purchase
• Home Construction/Purchase
• Home Extension
• Home Improvement loans
• Short-term Bridge Loans
• Non-Residential Premises Loans For Professionals
2-in-1 Home Loan scheme
A home-loan scheme that’s twice as good!
Confused whether to opt for an Adjustable Rate or Fixed Rate
HDFC brings you the best of both options with 2-in-1 Home
2-in-1 Home Loan provides customers with a choice of breaking
up the loan requirement into Adjustable and Fixed Rate loans.
Customers benefit both ways, as it helps them hedge their interest
rate risk against rising interest rates to the extent of the fixed rate
portion of the loan and take the advantage of falling interest rates,
with the Adjustable Rate portion.
2-in-1 Home Loans can be taken in any proportion. With no
prepayment charges under the Adjustable Rate Home Loan,
customers planning to make part prepayments can take a portion
of the loan intended for prepayment under Adjustable Rate loan
option; the rest can be taken under Fixed Rate Loan option.

Loans can be availed up to a maximum of 85% of the cost of the
property (including the cost of the land). HDFC lends up to a
maximum of Rs. 1,00,00,000 on a Home Loan to an individual.

You can repay the loan over a maximum period of 20 years.

Interest is calculated on annual rests. Principal repayments are
credited at the end of HDFC's financial year. The effective rate of
interest varies depending on the term of the loan. For a loan with a
term of 15 years, the effective interest rate would be higher by
0.37% per annum than the indicated rate of interest.

Typically the security 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 additionally required, if the property is

under construction. Collateral or interim security could be
assignment to HDFC of life insurance policies, the surrender
value of which is at least equal to the loan amount, guarantees
from sound and solvent guarantors, pledge of shares and such
other investments that are acceptable to HDFC.

The title to the property should be clear, marketable and free from
encumbrance. To elaborate, there should not be any existing
mortgage, loan or litigation which is likely to affect the title to the
property adversely.

Interim security may be additionally required, if the property is

under construction. Collateral or interim security could be
assignment to HDFC of life insurance policies, the surrender
value of which is at least equal to the loan amount, guarantees
from sound and solvent guarantors, pledge of shares and such
other investments that are acceptable to HDFC.
Following documents should be produced for approval of loan:
a) Common for all applicants:
1. Allotment letter of the co-operative society /
association of apartment owners.
2. Copy of approved drawings of proposed
construction / purchase.
3. Agreement for sale/sale deed/detailed cost
estimate from architect/engineer for the property to be
purchased / constructed.
4. If you have been in your present
employment / business or profession for less than a year,
mention details of occupation for previous 5 years, giving
position held, reasons for change and period of the same.
5. Applicable Processing Fees.
6. Any other information regarding your
repayment capacity that is necessary and will assist HDFC in
appraising the case.

b) Additionally,
If borrower is Employed:
1. Latest salary slip/salary
certificate showing all deductions.
2. If your job is transferable,
permanent address where correspondence relating to the
application can be mailed.
3. A letter from your employer
agreeing to deduct the monthly installment towards repayment
of the loan from your salary. This will expedite the processing
of your loan application.

If borrower is Self-Employed:
1. Balance Sheets and Profit & Loss Accounts
of the business/profession along with copies of Individual
Income Tax Returns for the last three years certified by a
Chartered Accountant.
2. A note giving information on the nature
business/profession, form of organization, clients, suppliers,

The repayment capacity as determined by HDFC will help in
deciding how much one can borrow (the cost of the property or
Rs. 1 crore, whichever is lower). Repayment capacity takes into
consideration factors such as income, age, qualifications, number
of dependants, spouse's income, assets, liabilities, stability and
continuity of occupation and savings history. And, of course,
HDFC's main concern is to make sure customer can comfortably
repay the amount they borrow

Resident Indians are eligible for certain tax benefits on principal
and interest components of a loan under the Income Tax Act,
1961. Interest repayment of Rs. 1,00,000 p.a. (for a loan on or
after April 1, 2000) can get borrower a tax saving up to
approximately Rs. 33,000 p.a. Moreover, customer can get added
tax benefits under Sec 88 on repayment of principal amount up to
Rs. 20,000 p.a. which can further reduce borrower’s tax liability
by Rs. 2,000 p.a.

About the product

HDFC's Home Loans offers you various unique benefits and are
easy to arrange and repayable in easy monthly installments. The
terms of the loan can be structured according to customer unique

Home Loans can be applied for by either individually or jointly.

Proposed owners of the property, in respect of which the loan is
being sought, will have to be co-applicants. However, the co-
applicants need not be co-owners.
Loans can be availed upto a maximum of 85% of the cost of the
property (including the cost of the land). HDFC lends upto a
maximum of Rs. 1,00,00,000 on a Home Loan to an individual.
You can repay the loan over a maximum period of 20 years . They
determine the loan amount after evaluating the repayment capacity
of the individual. HDFC's main concern is to help individuals
comfortably repay the borrowed amount.

Get in touch with your nearest HDFC office today. We will be

pleased to discuss and help you realise your plans for a house
Superior Processing Capacity : HDFC has over the years
invested substantially into computer systems and training. This
has enabled HDFC to respond to customer needs and build up
capabilities to approve loans on the spot or disburse them fast.

Branch Network : HDFC has offices spread all over the country.
This extensive network helps HDFC in providing service to large
and well spread out clients. This network of interconnected offices
(on Data Circuits) helps HDFC to process applications for
purchase of property anywhere in India. HDFC has further
established an office in Dubai and Service Associates in Kuwait,
Oman, Qatar, Bahrain and Saudi Arabia to make it easier for
Middle East based Non-Resident Indians to apply for a loan to
HDFC - India.

Experienced and Trained Staff : HDFC is the pioneer of housing

finance in India and has been a leader in the business for the last
25 years. HDFC has vast experience and a very committed and
skilled staff to handle housing loan applications and solving
customer problems.

Free Counselling : HDFC believes that it is in the business of

providing solutions to an individuals need for owning a house,
and not just in the business of providing finance. Keeping this in
mind HDFC will provide free counselling to on how and where to
buy a house in India (Property Services) or what are the prices
and trends in the real estate market or what precautions one
should take before buying a house. This service is offered at any
of HDFC's offices.

Legal and Technical Guidance : HDFC has qualified Legal and

Technical staff who liase with the developers to collect and
scrutinise the property documents and permissions. We have
Master Files of most projects being developed by reputed
developers. It has always been HDFC's endeavor to protect the
interest of the borrower, as we believe that buying a house is one
of the most important decisions in his life.

Extension Products : Over the last 25 years, HDFC has developed

various products in response to the needs of our customers. Today
we offer Home Loans, Adjustable Rate Home Loans, Home
Extension Loans, Home Improvement Loans, Home Equity Loans,
Short Term Bridging Loans and Land Purchase Loans.
Flexible (Customised) Repayment Schemes : Keeping in mind
the fact that each individual has a unique problem requiring
unique solutions, HDFC has developed various repayment options
like Step Up Repayment Facility, Flexible Loan Instalment and
Balloon Payment Scheme.
Pari Passu/ Second Mortgage Arrangements : HDFC has a tie-
up with a large number of Public Sector Organizations and banks
which enables us to
offer loans to your employees with the flexibility of their spouse
also availing a loan from his/her own employer.
Safe Document Storage Facilities : HDFC has state of art storage
facilities, which are theft and fire proof, at various locations
where loan and property documents are stored. In this way
valuable documents are stored safely over the period of the loan
and are released almost immediately after a customer repays his

Post disbursement services:

a) The exemption in respect of interest on borrowed capital is Rs
1,50,000 under section 24 (b) of the Income Tax Act. Further
interest on housing loans can now be taken into account by an
employer while computing the tax to be deducted from an
employee's salary.
b) HDFC sends interest certificates to its customers well in
advance which enables them to take advantage of the tax
exemption in their monthly salary
c) We can transfer files of customers from one location to
another in case of transfer of the customer in course of his job.
d) A customer, after availing of a loan can approach HDFC
anytime thereafter to increase the Equated Monthly Installment
which will help him repay the loan faster. This facility is offered
free of charge to our customers.

Electronic Mail : HDFC through its e-mail service can promptly

respond to queries. In addition, HDFC can promptly send it is
application form cum brochure and other details on its loan
products by e-mail to interested individuals. For Non-Resident
Indians, our interactive Website offers another means for
contacting us. In our effort to reach out globally dispersed Non-
Resident Indians, we will continuously enhance our Website.
Home Conversion Loans : HDFC offers the option of a Home
Conversion Loan to its existing customers who are interested in
moving to a new house. Through this scheme customers can apply
to have their existing loan transferred towards the purchase of the
new home. Customers may also apply for an additional loan
amount for the purchase of the new house. This gives the
customer the option of selling their existing house, if they wish to,
without having to repay their old loan.

Applications can be made before selecting property :

Individuals may make an application for a loan even if the
property has not been selected or the construction has not
commenced. HDFC can provide assistance in locating an
appropriate house to such customers.

Home Improvement Loans : As an exclusive offer to it's existing

customers HDFC offers Home Improvement Loans upto 100% of
the improvement cost as compared to Home Improvement Loans
of upto 70% of the improvement cost offered to the general

A processing fee of 0.5% of the loan amount applied for i.e. Rs. 5
per Rs. 1000 of the loan applied for is payable when the
application form is submitted to HDFC. This fee is in respect of
costs incidental to the application.
For example :
Loan applied for Fees
Rs. 20,000 Rs. 100
Rs. 1,00,000 Rs. 500

On approval of the loan, a loan offer is made to you. On

acceptance of the
offer, you will have to pay an administrative fee of 0.5% of the
loan approved. You can also pay the processing and
administrative fees upfront i.e. 1% of the loan at the time of
submission of the loan application itself.

Rate of Interest
Adjustable rate of Interest
The interest rate on your ARHL is linked to HDFC's Retail Prime
Lending Rate (RPLR). The rate of interest is revised every three
months from the date of first disbursement, if there is a change in
RPLR. However, the EMI on the ARHL will not change. For
instance, if the interest rate increases, the interest component in
EMI will increase; the principal component would reduce,
resulting in an extension of the term of the loan and vice-versa
when the interest rate decreases. customer will be provided with
an annual statement indicating the details of the interest and
principal payments made during the year.
Annual Rest Option
Term of Loan (No. of Years) Rate Per Annum (%p.a)
1 – 20 8.00
Monthly Rest Option
Term of Loan (No. of Years) Rate Per Annum (%p.a)
Upto 5 9.00
6 - 10 9.25
11 – 20 9.75
Rate of interest under ARHL is linked to HDFC's RPLR (Retail
Prime Lending Rate) which currently is 8.00% per annum.
customer repay the loan in EMIs comprising principal and
interest. Pending final disbursement, you pay interest on the
portion of the loan disbursed. This interest is called pre-EMI
interest .
EMI per Rs.1,00,000 for Annual Rest

Term of loan (No. of years)

20 979
EMI per Rs.1,00,000 for Monthly Rest
Term of loan (No. of years) Rupees
5 2,076
10 1,281
20 949

There is no early redemption charge on repayment of a loan ahead

of schedule.
Fixed rate of interest
The current applicable fixed rate of interest in respect of the total
loan approved is are as follows:
Annual Rest Option
Term of Loan (No. of Years) Rate Per Annum (%p.a)
Upto 5 9.25
6 - 10 9.25
11 – 20 9.75
Monthly Rest Option
Term of Loan (No. of Years) Rate Per Annum (%p.a)
Upto 5 9.25
6 - 10 9.50
11 – 20 9.75
You repay the loan in Equated Monthly Instalments (EMIs)
comprising principal and interest.
EMI per Rs.1,00,000 for Annual Rest
Term of loan (No. of years) Rupees
5 2,157
10 1,313
20 963
EMI per Rs.1,00,000 for Monthly Rest
Term of loan (No. of years) Rupees
5 2,088
10 1,294
20 966

Pending final disbursement, customer pay interest on the portion

of the loan disbursed. This interest is called pre-EMI interest .
An early redemption charge of 2% of the amount being prepaid is
payable on repayment of a loan ahead of schedule.

How to Apply
customer can either download (in a pdf format) the application
form or, get the application form by email or normal mail.
Alternately, customer can collect the application forms from any
of your nearest HDFC Offices.

customer need to submit it along with supporting documents and

the processing fees at any HDFC office that is convenient to the
customer. customer can make payments by cheque marked
"Payee's account only" drawn on a bank in a city where HDFC has
an office, by demand draft (payable at par to HDFC) or by cash.
Customer can make an application at any time after they have
decided to acquire a house, even if the house has not been selected
or the construction has not commenced.

HDFC will consider your application, make enquiries as it deems

necessary and convey its decision to you. On approval of the loan,
a loan offer is made to you. On acceptance of the offer, you will
have to pay an administrative fee for the loan approved.

customer can take disbursement of the loan after the property has
been technically appraised, all legal documentation has been
completed and you have invested your own contribution in full
(Own contribution is the total cost of the property less HDFC's
loan). The loan will be disbursed in full or in suitable instalments
(normally not exceeding three in number) taking into
account the requirement of funds and progress of construction, as
assessed by HDFC and not necessarily according to a builder's

Supporting Documents to be attached :

For approval of loan
a) Common for all applicants:
1. Allotment letter of the co-operative society / association of
apartment owners.
2. Copy of approved drawings of proposed construction /
3. Agreement for sale/sale deed/detailed cost estimate from
architect/engineer for the property to be purchased /
4. If you have been in your present employment / business or
profession for less than a year, mention details of occupation
for previous 5 years, giving position held, reasons for change
and period of the same.
5. Applicable Processing Fees.
6. Any other information regarding your repayment capacity that
is necessary and will assist HDFC in appraising the case.

b) Additionally,
If You Are Employed:
1. Latest salary slip/salary certificate showing all deductions.
2. If job is transferable, permanent address where correspondence
relating to the application can be mailed.
3. A letter from employer agreeing to deduct the monthly
instalment towards repayment of the loan from the salary. This
will expedite the processing of your loan application.

If You Are Self-Employed:

1. Balance Sheets and Profit & Loss Accounts of the
business/profession along with copies of Individual Income
Tax Returns for the last three years certified by a Chartered
2. A note giving information on the nature of
business/profession, form of organisation, clients, suppliers,

IDBI, the tenth largest development bank in the world has

promoted world class institutions in India. A few of such
institutions built by IDBI are The National Stock Exchange
(NSE), The National Securities Depository Services Ltd.(NSDL),
Stock Holding Corporation of India (SHCIL) etc. IDBI is a
strategic investor in a plethora of institutions which have
revolutionized the Indian Financial Markets.

IDBI promoted idbi bank to mark the formal foray of the IDBI
Group into commercial Banking. This initiative has blossomed
into a major success story. idbi bank , which began with an equity
capital base of Rs.1000 million (Rs.800 million contributed by
IDBI and Rs.200 million by SIDBI), commenced its first branch at
Indore in November 1995. Thereafter in less than seven years the
bank has attained a frontranking position in the Indian Banking

idbi bank successfully completed its public issue in February 99

which led to its paid-up capital expanding to Rs.1400 million. The
promoters holding consequent to this public issue stood reduced
to 71% with IDBI holding 57% and SIDBI 14% of the paid up
capital of IDBI Bank. This is in line with the requirement of RBI
which stipulates that eventually the promoters holding should be
brought down to 40%.
The Bank
The birth of idbi bank took place after RBI issued guidelines for
entry of new private sector banks in January 93. Subsequently,
IDBI as promoters sought permission to establish a commercial
bank and retained KPMG a management consultant of
international repute to prepare the groundwork
for establishing a commercial Bank. The Reserve Bank of India
conveyed it's in principle approval to establish idbi bank on
February 11th, 1994. Thereafter the Bank was incorporated at
Gwalior under Companies Act on 15th of September 1994
(Registration No. 10-08624 of 1994) with its Registered Office at
Indore. The Certificate for Commencement of Business was
received on 2nd of December 1994.

Management Team - The Core Strength of The Bank

Since August 2000 idbi bank has witnessed a transformation in
the top management structure with top talent from foreign banks
and private banks coming together to create a world-class
management team. Mr Gunit Chadha joined idbi bank as its
Managing Director & CEO after spending 16 years with Citicorp
in New York and India, on 22nd August 2000. He laid out the
bank's immediate priorities, amongst them being building up a
performance driven customer focused organization. Existing
talented people within the bank were re-aligned to a functionally
driven Product & Sales organizational structure. Also, to align
employee interests with shareholder interests founder Stock
Options (ESOPs) in October 2000 covering 75 % of the existing
employees of idbi bank were distributed.
Key recruits into the top management team were:
In January 2001, Janak Desai joined in as Country Treasurer after
an outstanding innings at Standard Chartered Bank and ABN

In February 2001. Ajay Bimbhet joined as Head-Retail Banking to

lead retail banking at idbi bank . Ajay comes after a strong and
brilliant 25 year career at ANZ Grindlays.

In December 2000, Neeraj Bhushan Bhai joined idbi bank as the

Chief Technology Officer. Neeraj has been a major success story
in the

assignments handled by him earlier as Chief Information Officer

of and Chief Technology Officer of ICICI
Infotech in their technology initiatives.

In April 2001, Subramanian Kumar joined idbi bank as Head -

Operations after earning accolades during his stint at Standard
chartered Bank, Dubai and previously at HDFC Bank.

In May 2001, Ulhas Deshpande joined as Head - HRD. He has

more than 18 years of rich human resource experience, of which
over 10 years has been in heading the HR function in premier
organizations- Hindustan Ciba Geigy, Merind, Parke Davis and
most recently as Head-HR at Tata-AIG.
In August 2001, Susheel Kak joined as Head - Corporate Banking
after a 25 years of varied banking experience in SBI and Deutsche
Bank in Singapore and India.

Idbi bank is growing at a very fast pace. Recently, the no. of

employees have crossed 1000 mark from 777 employees as on 1st
April 2001 and it is expected to cross 1200 by the end of this
financial year. The Bank also has a state-of-the-art training centre
at Belapur and every employee receives on an average at least 40
hours of training in a year.

Technology and Tech Initiatives

Keeping in line with its policy of leveraging technology to drive
its business, idbi bank deployed Finacle, the e-age banking
solution from Infosys to consolidate its position, meet challenges
and quickly seize new business opportunities. Entire Finacle
rollout was remarkable considering the fact that it was
implemented across all branches in a record time-frame of 5
months. Finacle will provide the critical technology platform to
propel the bank's new thrust and direction.

The bank has also implemented Kondor+ - a treasury Front Office

software from Reuters and ITMS- treasury back office software
from Synergy Login. Achievement of these significant milestones
is consistent with idbi bank 's continued focus to create customer
and shareholder value through deployment of superior technology.
Investments in technology is part of the plan to put in place
building blocks for creating the right organisational infrastructure
which will help idbi bank in consistently delivering superior
products, convenient access channels and efficient service to our
retail and corporate customers. Of the total investments of over
Rs. 75 crs, large investment has been made in back-end
technology to strengthen processes, systems and control. This, in
the long run, propelled by a top quality management team will
clearly set idbi bank apart from its competitors.

Strategic Retail Initiatives

idbi bank in the previous calendar year initiated its formal foray
into retail banking. idbi bank 's depository services product E-Sec
is a major success story and the bank today is in the top three
league in India in this segment. A spate of retail products were
introduced such as home finance, loans against shares, educational
loans, car loans, Sweep in account, SMS/WAP mobile banking
etc. on very competitive terms.

Retail Bank has acquired software for its Retail Assets products.
Also, on its way is Internet Banking with Bancaway, from
Infosys. idbi bank has recently launched its upgraded, state-of-
the-art telebanking product across 17 centres with latest software
from BK Systems. Mobile banking

(WAP/SMS) from Hexaware, which is mobile service provider

independent, launched during FY01. We have also migrated to an
Open Architecture "Oasis" ATM Switch capable of providing
features like Bill Presentation Payment and personalised

The bank has recently announced its strategic alliance with TATA
AIG General Insurance Company for selling General Insurance
Products through select branches & ATMs of idbi bank .

The bank announced a landmark strategic alliance to make

available widely, both organisations' products through each others'
distribution channels. Now you can buy coveted savings Products
like the National Savings Certificates and Kisan Vikas Patra on
Internet .

The New products which are going to be announced shortly are

Credit Cards, Debit Cards etc.

Idbi bank is continuously looking for ways to leverage its

technical strengths and bring to the retail customer convenience
products at reasonable cost.

Corporate Banking and Credit

Idbi bank has launched its Cash Management Services in the 2nd
quarter of FY02 with powerful software from Cash Teck. The
bank has also invested in Credit Rating System software from
CRISIL to strengthen its corporate risk assessment mechanism.
This goes live from the first quarter of 2001-2002. Morevover, the
bank is in the process of investing in more back-end systems for
Fixed Assets, Payables, FTP and ALM.
Stronger Capital Adequacy
Capital Adequacy ratio of idbi bank is well above the RBI norm
of 9% and as on 30th June 2001 stood at 12.01%.-->
idbi bank has adopted Governance standards based on best
practices prevalent internationally. It has a structure of
governance which meets with the requirements prescribed by the
Kumarmangalam Birla panel and fully meets the
recommendations by internationally acclaimed and recognised
norms of governance addressed by the Cadbury, Greenbury and
Meryn King committees.
Employee Contribution
idbi bank has more than 1000 talented and highly motivated
employees as on date.
The average age of the employee at idbi bank is 31 yrs.
85% of the employees are MBAs/CAs/ Professionally Qualified
The bank has rolled out broad based grant of stock options
covering 75% of the employees to align their interests with those
of its shareholders.
Buying a home of one's own is every individuals first stop in
life. . Which is precisely why, we at idbi bank , have pulled out all
the stops to sew together a home loan product that has flexibility
as its very foundation. Bank have created a product that is
competitively benchmarked, that is amply affordable and one that
is customer-sensitive. Only because when it comes to buying a
house, the first thing customer need to do is to feel at home with
their bank.
Interest Rate on Monthly Reducing
Home Loan services at Door Step
Simple Documentations
Personalized Service
Legal and Technical Assistance

Housing Loan Rates :

Floating rate loans have been institutionalized as the standard
offering, making it simple for new customers to benefit from
favourable interest rate changes in the future too.

Tenure (yrs) Rate of EMI per Lac
Interest *
Upto 5years 9.25 % 2088.00
6 - 10 years 9.75% 1308.00
11 – 20 years 10.00% 982.00

Pre-payment Fees
Pre-payment Fee of 2% on principal outstanding if the
prepayments are through institutional / HFC s Cheque / pay
order.In case of customer premature closing his home loan
account with his own funds no prepayment will be levied
Let’s suppose that the customer have a home loan of Amount RS.
10 lakhs Repaid in 16 years (192 months) at an interest rate of
11.25% p.a. (monthly rests)

Some Interesting facts about you home loan

You owe the bank

Principal Paid
Total Payments In

Rupees Lakhs

Interest Paid
1.5 11.6
9.37 10.09

60 120 134 192

Imaging how much the value of their home will have to appreciate
to just be worth the value you finally paid for it!
Home Loan HomeSaver
• A fixed repayment structure • The interest customer pay
with high interest & low may be substantially reduced
principal recovery & consequently repayment
towards principal can be
high. The interest you pay
depends on their loan balance
each day. When you loan
balance is reduced the
interest component comes

• Inflexible repayment plan • Customer have option to

make excess payment over &
above your EMI to reduce
their balance daily. Payment
holiday also available.

• Prepayment may be subject • No prepayment hassle & no

to many constraints including penalty is chargeable on any
penalties. excess customer use to
reduce their loan principal.
They can also with draw any
surplus at your convenience
anytime & anywhere.
• Interest is calculated on a • Interest is calculated daily on
monthly balance & applied net loan balance & applied
monthly monthly

• Their home loan A/C in kept • HomeSaver is one single A/C

separate from their bank A/C. where home loan & deposits
Saving & other surplus reside or surplus funds is integrated
in a separate current/saving together. Every rupee they
account where money is pay goes to repaying the loan
earning either Zero or low rather than repaying interest.
interest. So they can use their surplus
cash to save there as much
interest as in charged on
homesaver A/C.

Normal home loan HomeSaver

• A fixed repayment structure • The Potential to
with high interest and low substantially reduce interest
principal recovery and consequently repayment
towards principal can be
• Inflexible repayment plan • Flexible repayments
including Payment Holidays
• Prepayment are subject to • No part prepayment hassle
many constraints, including or penalty
• Interest is calculated on • Interest calculated on daily
monthly balance and applied balances and applied
monthly monthly
• Their home loan account is • One single account where
separate from bank account home loan principal is
integrated with their
deposits and credits

Reduction in Interst Paid Reduction in Tenure

12.00 200
Interst Paid (in Rs. lakhs)


Tenure (in months)

10.00 5.00 160 74
11.60 192
6.00 100
4.00 6.60 118
2.00 40
0.00 0
Norm al hom e loan Hom eSaver Normal home loan HomeSaver

Research Methodology is an important part of every project. Because it help

in knowing how to select representative sample from the world or
the general population, the right research tools and techniques to
complete the research.

To satisfy the customer the study of comsumer behavior is important because

he is the king. The Research Process is based on survey method, so
in order to implement the survey we go to Service Provider and the
Services user which is the customers.

The research involves the following steps :-

♦ Define the problem & research objective - The problem and objective is
to assess the services offered by various service provider and
what the consumer wants.

♦ Developing the research Plan - The second stage of research

methodology is to develop a research plan.The research plan
desigined to take decesion on the data soruces, research
approaches, research, instruments, sampling plan and contact

Survey Research – It was a descriptive research.

♦ Research Instrument – The use of an effective research instrument is very
important. Because through this instrument we collect data. In this
project through observations & personal interviews were

Personal Interview – As we were doing direct selling. we interacted with my

customers are asked about there views in selecting a service and
what are there wants and expectations from a service provider

 Sampling Plan - After finalizing the research approch and instruments a

sampling must be designed.

♦ Sampling Unit –data have been collected from banks

♦ Sample size – It has been collected from four banks.

Sampling Procedure :- What process should be used to collect the sample.

So, representation samples, convenience sampling is used.

♦ Collect the Information :-After completing all the steps, the data are
collected from different sources.

♦Analyze the Information:-After the data is collected they are analyzed to

Know the findings. The data is then tabulated to develop frequency

♦Present the findings:-As the last step, the findings are presented that are
relevant to the major marketing decisions.

The home loans provided by various banks are more or less same
at a basic level. The banks generally try to go ahead of other
banks in terms of attracting number of customers to their
countries. For this they are trying to offer some unique services as
per the unique requirements of the unique and important

In the next page various data’s have been shown which shows that
are the home loans provided by various banks and SCB have also
tried to compare the services offered by the banks,.


Interest Rates Have Dropped

18 16.5
16 15
14 13.25
12 10
2000 2001 2002 2003 2004
And Housing Loan Disbursement Have Soared

50,000 45,000
35,000 29,359
25,000 22,425
15,000 11,352
1999-00 2000-01 2001-02 2002-03 2003-04


Market Share of Players

32 Standard Chartered Bank





The market for home loans has been sizzling in India. The spurt in
growth in recent years and the prospects of continued buoyancy in
demand have attracted many players to the industry, which till a
couple of years back had two major players - HDFC and LIC
Housing Finance. The result - cut throat competition, which has
benefited the loan seeker.

The home loan market has grown at a compounded rate of over

40% over the last four years. And from what industry experts will
have us believe, there is little chance that there will be any
significant decline in growth rates going forward. So what have
been the key factors in triggering of this high growth period?

There are several reasons for the same. On the demand side -

Faster rise in incomes as compared to property prices, thus

making housing more affordable

Declining interest rate, which has greatly reduced the cost of

servicing a loan.

Tax benefits, which further reduced the effective cost of

borrowing (both on interest and capital)

Then there are factors on the `supply side' too which have
supported this growth -

More competition in the housing finance sector resulted in

companies charging lower interest rates, sometimes even at the
cost of the spread (i.e. profit margin)
The fee for getting a home loan has reduced dramatically over the
last couple of years, from over 2% of the loan amount to as low as
0.25% (some companies are known to waive off the fee entirely!)

Housing finance companies have introduced several new products

to meet the needs of a wide variety of customers. One such
scheme, the step up loan, where the EMIs increase as the income
of the individual increases has been a big hit with individuals just
starting off with their careers.

One other factor is the increasing collaboration between housing

finance companies and builders. Such partnerships minimise
service and funding related issues significantly, thus making it
easier to buy property.

One innovation in the housing finance sector has been the

introduction of `floating rate' home loans. Simply put, the cost of
such loan, or the interest rate, is not fixed during the tenure of the
loan. Instead the interest rate is benchmarked against some
index/indicator. So as the benchmark rate moves up/down, the
cost of your loan too changes, at some predetermined frequency
(usually once a quarter).
Ideally, loan seekers should opt for a floating rate home loan
when it is expected that interest rates will decline going forward.
Fixed rate loans should be preferred when interest rates are
expected to rise.
But is making a choice that simple? In today's environment, when
there is a lot of talk about rising interest rates, should investors
shun floating rate home loans altogether? Or is there still some
merit in this instrument? “In the last one year, there was a trend of
floating rate home loans being more popular as compared to the
fixed rate loan. As of now, this trend is continuing.” says Mr.
Suresh Menon, GM (Mumbai Region), HDFC Ltd.
There are three important issues which one needs to consider
before opting for one type of a loan over the other.
First, an important determinant of what you go in for should be
the long term expectation of interest rates. For example, if you (or
the experts) expect rates to rise for the next one year, but then
decline gradually over the next several years, a floating rate
product may be preferable. The other option of going in for a
fixed rate product and then switching at the end of the year will
entail costs (there could be a penalty of 1% - 2% of the
outstanding loan amount) and may not make financial sense.
Moreover, floating rate home loans do not change the rate of
interest every quarter (even though they may review the rate every
quarter). Mr. Menon points out “The attraction of a floating rate
home loan is that it does not attract a part prepayment charge.
This could appeal to individuals who get lump sum bonuses which
they can use to reduce their loan exposure”.
Second, the issue whether fixed rate home loans are actually
`fixed rate'. When considering a fixed rate home loan over a
floating rate home loan a strong selling point is that if interest
rates were to rise dramatically you will be `protected'. Apparently
the reality is somewhat different. It seems that companies that
have given out fixed rate loans can revise their rates upwards in
exceptional circumstances (significant rise in interest rates for
one). So if you think rates will remain range bound over the near
term and decline over the long term, you are still better off with a
floating rate product.
Third, a fixed rate loan is generally priced higher as compared to a
floating rate product. This holds true in the current environment
where the fixed rate loan is at a higher interest rate as compared to
a floating rate loan. The difference is currently about 0.25% to
1.00%. So if you expect that interest rates are likely to move up,
but only to the extent of this differential, then you should ideally
be indifferent between the two types of a loan. The deciding
factors then should be when you think the rates will increase, and
also the long term expectations of interest rates.
As always, there is no one answer to whether you should go in for
a floating or a fixed rate home loan. If you are person with very
little appetite for risk or negative surprises, opt for the fixed rate
home loan. But in case you can take on some risk, a floating rate
home loan is worth a look!
Five steps to picking the right loan
1. Gather data on interest rates
Get interest rate information from more than one source, and get
the same information from each so you can compare the offers.
2. Get info on fees
Find out about processing fees, administration charges and other
costs that may be involved in taking the home loan. A written
statement of all fees from the housing finance companies will
ensure that there are no surprises later on. Use the lowest amount
of fees to negotiate with the other lenders.
3. Get a pre-approval letter
This gives you substantial leverage as you are then seen as a
serious buyer by the seller of the property. Also, having the letter
in your hand will set a limit to the amount of money you can
commit to a property. This will help in identifying the right
4. Bargain for a lower rate of interest
Housing finance companies will reduce their `rack' rates for
customers with a good credit record. A bargain deal will easily
fetch a home loan at significantly lower rates (at times you can get
a discount of as high as 0.50%). Here again, get a confirmation of
the rate (and for how long it will remain fixed) via a letter.
5. Watch out for predatory lending
Don't include false information on your home loan application to
get quick approval. Also do not borrow more money than you
need or can afford.

A floating interest rate allows customer to take advantage of

interest rate movements --they get immunity from adverse
movements and reap the benefits of any fall in interest rate. But a
floating rate loan makes sense only when interest rates are high,
so that they can take advantage of a possible fall. But predicting
interest rate movements could confound even seasoned market-

If they are looking for a home loan, be prepared to cough up a

pretty sum as down payment. The Reserve Bank of India, in a
recent meeting with bankers, cautioned banks against lending 100
per cent of the property value. That’s because given the increasing
competition in home loans, some banks have been funding even
110 per cent of the agreement value. This means your loan not
only pays for the property, it helps with stamp duty and
registration charges, and even furnishings. It’s been a sweet deal
so far, as borrowers not only need have no access to other funds,
they also get tax breaks.

The RBI’s position is that lending such sums will mean additional
risk for the bank. In case of default, the bank may not have
sufficient collateral to recover dues, and may have to write off the
additional borrowings. However, bankers do not seem unduly
worried. Non-performing assets in the housing segment are quite
low--below 1 per cent--and that, say bankers, is due to the high
asset quality.
As per officials of IDBI Bank: "For a house to become a home,
there are additional costs incurred by the borrower, which he
meets by borrowing from friends or family members. Also, the
default risk in housing loans is

quite low, so they think that with proper checks, there’s nothing
wrong in lending more." IDBI Bank was the first to see this and
slashed the interest on its 15-year. They want to achieve a serious
leadership position in home loans, so they thought of giving the
best possible rate to the customers.

Housing finance companies like HDFC, however, lend only up to

85 per cent of the agreement value. There has to be some equity
and commitment from the house buyer, so we ask for at least 15
per cent down payment from the house buyer. They try to make
sure that their risks are well-covered.

For the moment, however, banks can continue lending more than
100 per cent of the property value. But if push comes to shove,
and if RBI makes its suggestion a rule, this sweet deal may not
last long.

More proof that home is indeed sweet home. Bimal Jalan’s latest
announcement of a cut in bank rate is a clear sign that the soft
interest rate policy is all set to continue. The 25 basis points
decrease in the bank rate means the central bank has reduced the
rate at which banks borrow from it. This means that banks, in
turn, could reduce the interest rates they charge on housing

Already, State Bank of India, one of the biggies in the housing

finance business, has announced a rate cut of 25 basis points. Its
rates for loans up to 10 years have been reduced to 8.75 per cent
from 9 per cent, and for loans over 10 years to 9.25 per cent from
9.5 per cent. The cost of funds has come down; therefore, they
have decided to reduce their home loan rates.

When interest rates fall, lenders lower not the EMI amount but the
number of months that you pay those EMI’s. The table shows the
number of months
by which your loan tenure is cut when interest rates are lowered
by 0.25 to 1 percentage point.
% cut -0.25 -0.5 -0.75 -1
20 yrs 11 20 29 37
15 yrs 5 10 14 18
10 yrs 2 4 6 8
On a 9 per cent Rs 1 lakh loan

There's good news for those wanting a home loan. Over the past
few months, lenders have been cutting interest rates on home
loans by 25-50 basis points. Banks like HDFC, ICICI Bank, and
State Bank of India have cut rates by 0.75 per cent in the last two
weeks to 9.75 per cent for 15-year loans.

One reason for the rate cut is that borrowing costs have come
down, which is a result of a cut in interest rates in the general

The general economy apart, lenders have been forced to cut rates
to keep up with competition. More players want to enter the home
loan market, and existing players are fighting for a larger share.

HDFC has also felt the heat. It has decided to reduce the review
time of its variable interest rate from 6 months to 3 months, so
that existing variable rate borrowers can benefit faster in the
falling interest rate scenario. ICICI too has kept pace with its
peers. While interest rates on fixed mortgages tend to be higher,
ICICI has decided to offer the same rate it charges floating rate
Fixed rate products are not widely available now; lenders like
IDBI and Citibank do not offer fixed rate home loans. Others like
Corporation Bank

are not extending fixed rates loans beyond a 10-year period. This
is good in the short-term, but if rates go up, floating rate
borrowers may be in for a tough time.

• The industry has been witnessing a very fast growth rate, which is
6% growth in the first quarter of 2002-2003 as against 3.5 %
growth recorded in the first quarter of 2001-02.
• The market faces a high demand curve, thoroughly mismatched by
a low supply curve
• Investment is based in assets that are securities and those that
have historically appreciated rapidly.
• Tax benefits and other facilities provided on loan repayments

• The foreclosure rules of court
of law such as provision regarding the ownership of not more than
one house (In Delhi) binds the industry.
• The health of an HFC depends upon its ability to
mob up low cost funds.
• An HFC is unable to tap the rural market due to
lack of proper retrieval procedures, so whilst the rural market
offers a higher rate of return, it has a higher risk and default rate.
• Many legal impediments exist, deferring
purchase of certain types of property beyond a certain extent
thereby negatively impacting the housing finance industry. Weak
mortgage laws, resulting in an increase in risk compound this

• The housing industry faces a
severe shortage of houses. The total demand for houses is expected
to touch around 19.40 million units by the year 2003. Of these 12.8
million dwelling units (65.98 per cent) would be in rural areas and
6.6 million dwelling units (34.02 per cent) in urban areas.
• While the loan facility is backed by the security
of the property this sector represents a low margin but on same line
low risk segment. To address this market the ones lies on the HFCs
to device bold and innovative alternatives like mortgage based
securities, use of methods such as door to door collection of
installments, assessing the creditworthiness of the prospective client
and providing for group security.
• The roles of NHB in refinancing and providing
regulation of housing finance system.
• The government's initiative to promote the
sector and its contribution in uplifting the sector

• The industry faces increased competition as more and more
foreign backs and housing finance companies are providing loan

• Save substantial interest
• Prepay whenever the customer wants
• Reduce their loan outstanding without any penalties
• Access the surplus funds anytime
• Use surplus funds to invest when the right opportunity arises

• Product is very good but it is mainly suitable for the higher
income group and is not suitable for the middle income group.

• Ample scope for financing flats and apartments for the salaried
class in the higher income group.

• Nationalized banks like SBI, Union Bank and PNB
• Private Banks like HDFC and Standard Chartered and Citibank
with its Home Credit scheme.

The Indian customer has come a long way from purchasing to fulfilling their
needs from buying a house. Customers now grab everything that comes their
way but they do their own survey of optimum loans; same is the case with
banks, and housing loans. With innumerable choices before him, the
customer is indeed the king. It is therefore imperative that if a bank has to
succeed in the competitive world, it should be technological savvy, customer
centric progressive driven by highest standards of corporate governance and
guided by sound ethical values and above all should be cordial and should
have personalize customer services.

There is scope of exploiting the vast middle income group by releasing loans
with special interest rate which would be beneficial to both parties.

The following suggestions are strongly recommended:

1. To broaden the customer base the vast middle income strata should be
fully exploited
2. Simplify the procedure, reduce service charges, and demand only the
basic essential proof.
3. Most banks are reluctant to advance loan to the service class e.g. lawyers,
police officers etc.. This aspect must be exploited.
4. Adoption of flexible and more lenient penalty should the customer fail to
deposit the payment on time. The penalty should be on case to case basis
rather then the same for the entire customer base.
5. Restriction to be reduced to bare minimum for loan advances and for
repayment. For e.g. offer long-term repayment facilities and have no age
restriction to choosing repayment.
6. The maximum age for repayment could be increase to 65-70 years of age.
Such facility will help grow fast retail segment of the bank.
7. Offer multiple repayment loans.
8. Service class to be exploited by offering special reduced rates and linking
the repayment from the source from where the pay-cheque to the
employee is issued. This needs to undergo special contract with
government organisation to ensure implementation.

Equal Monthly Installment (EMI) :

Loan repayments are usually in Equal Monthly Installments over

the tenure of the loan. Some banks also offer a Variable
Installment Scheme were in repayments are higher in the
beginning of the loan period. This is beneficial for those
individuals who are trying to maximise their tax breaks in the
initial years and expect future tax breaks to fall (we believe that
the opposite is more likely!)

Fixed /Floating rate:

Under a floating rate loan, the interest rate on the loan varies from
time to time depending on the Prime Lending Rate fixed by the
Reserve Bank. This change can happen as frequently as one in six
months. If the PLR falls, you benefit as the effective interest rate
on your remaining loan falls. However, your payments every
month stay the same. The Finance Company will refund some of
your EMI cheques and effectively compensates you by reducing
the tenure of the loan. The reverse happens if the PLR rises, much
to your disadvantage.

Choosing between fixed and floating loans:

In the last 2-3 years the PLR has fallen as the Indian economy had
slowed down and demand for money was low. If you expect this
trend to continue, you stand to benefit from a floating rate loan. If
interest rates begin to rise again, you can prepay your floating rate
loan and lock in to fixed rate loan. You must them choose a
floating rate loan with no repayment charges (one is offered by
HSBC). However, if you do not want to speculate on interest rates
and need a stable loan to help planning the future, then go for a
Fixed rate loan.


Interest rates are quotes on a daily rest, monthly rest or annual rest
basis. The annual rest quote implies that the company gives you
the credit for the monthly principal repayments only at the end of
each year. Such loans are therefore more expensive than a
monthly /daily rest loan. The shorter the tenure of the loan, the
greater the effective interest rate difference will be. has standardised all interest rate quotes from
companies on a MONTHLY REST basis ( rates will therefore
look different from Company brochure quotes which maybe on a
annual rest basis)

Processing Fee:

A one time fee which is normally non-refundable and payable

along with your initial loan application. Rates can vary from 1-2%
of the loan amount.

Administrative Fee:

A one time fee which is normally non-refundable and payable

before your loan is disbused. Rates can vary from 1-2% of the
loan amount.

Commitment fees:

This interest is charged if you do not draw the sanctioned loan

within a period of 6-9 months. The rate of interest is usually about
1-2% a months.

Interest Tax:

Housing Finance companies have to pay a tax on the interest

income they receive from you. They sometimes pass this on to the
customer. Always check with the company if the interest rate they
are quoting includes interest tax or not. This tax normally about
2% of the interest rate charged. E.g if the interet rate quoted is
14% then the actual interest rate including interest tax is about
14.28%. has standardised all rates AFTER
Interest Tax, on a monthly rest basis to aid comparison across
companies.This rate is called the Effective rate.

Prepayment charge:

Most Housing Finance companies charge a fee for prepaying your

loan before its full tenure is over. This helps them plan their
finances, at your expense. Your earning capacity will normally
increase with age and a prepayment fee can be a big cost. This fee
also limits your ability to refinance the loan if interest rates fall
after a few years. The fee is normally in the range of 1-2% of the
prepaid amount.

Refinance Charge:

Some Housing Finance companies do not charge you for

prepayments from your own savings. However, if you retire a loan
using money borrowed from another Finance Company, you will
have to pay a Refinance charge of 1-2% of the loan outstanding.

Down payment:

Housing finance companies would normally give a loan up to 80-

85% of the value of the property. The remaining amount would
have to paid by the buyer (to the seller), as a down payment
before the he draws on the loan.

Tenure of the loan

Normally, loans are given for a period of 1-15 years. Some

companies also give loans upto 20 years at an additional interest
cost of 0.25% -0.5%. Most companies do not allow loans for a
fraction of a year.

• The Economic Times, 15 February 2005
• The Financial Times, 06 December 2004
• Philip Kotler, Marketing Management, 9th edition
• Akkar ;Marketing Research
• Business Today, July 20 2004 issue