 TITLE

AN ANALYTICAL STUDY ON HOME LOAN

 INTRODICTION
Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above
all gathering funds little by little to afford one’s dream.

Home is one of the things that everyone one wants to own. Home is a shelter to person
where he rests and feel comfortable. Many banks providing home loans whether commercial banks
or financial institutions to the people who want to have a home.

HDFC-(Housing Development And Finance Corporation) Home Loan, India have been serving
the people for around three decades and providing various housing loan according to their varied
needs at attractive & reasonable interest rates. Owing to their wide network of financing, HDFC
Housing Loans provides services at your doorstep and helps you find a home as per your
requirements.

Many banks are providing home loans at cheapest rate to attract consumers towards them.
The more customer friendly attitude of these banks, currently offer to consumers cheapest loan over
homes.

In view of acute housing shortage in the country, and keeping in mind the social – economic
role of commercial banks in the present times, the RBI advised banks to encourage the flow of credit
for housing finance.

With the RBI reducing bank rate, the home loan market rates nose-diving by 50 basis points.
The HDFC Bank and Standard chartered bank has become the first player in this sector to
announce a housing loan for a 20 years period. No doubt it will enhance the end cost people to
plan their house over longer duration now; it has been made easy for a person to buy that
dream house which he dreamt of long ago

 STATEMENT OF PROBLEM
This study focuses on following problems –

 What is the process of getting home loan

 What type of people generally applies for home loan ?

 What are the problems faced by customers in obtaining the home loans.
 To know ideas of customers about home loan products and services.

 SCOPE
 The Indian housing finance industry has grown by leaps and bound in few years.
total home loans disbursements by banks has risen which witnesses phenomenal
growth from last 5 years. There are greater number of borrowers of home loans.
so by this study we can find out satisfaction level of customers and problems
faced by them in obtaining home.

 Research objectives :

The various objectives of the studies are as follows:

1) The main objective of this study is to know the Customers perceptions about
home loans of HDFC housing development finance corporation LTD.
2) To study the satisfaction level of customers about home loans
3) To learn about various aspect of HDFC bank

 LIMITATIONS

1 Individual study is a major limitations of project study

2 project is for limited period so cannot get more time for project work
3 lack of accuracy is limitation for primary method

 WORKING DEFINITION
 DEFINITION OF BANK
A bank is a financial institution licensed to receive deposits and make loans. Banks may
also provide financial services, such as wealth management, currency exchange and safe
deposit boxes. There are two types of banks: commercial/retail banks and investment
banks. In most countries, banks are regulated by the national government or central bank.
 DEFINITION OF HOME LOAN
A sum of money borrowed from a financial institution or bank to purchase a house.
Home loans consist of an adjustable or fixed interest rate and payment terms.
  CLASSES OF RESPONDENT
 Classes of respondent were people who applies for home loan and people who already
have taken home loan of different age, income and Area

 SAMPLE SIZE
 Sample size of study of 30 people

 SOURCES OF DATA COLLECTION

 Source of data collection is done through interactions with people from various categories
 Questionnaire solved by various people and information form internet

 Methods of data collection

 Primary data
In survey approach i selected a questionnaire method for taking a customer view because
it is feasible from the point of view of my subject & survey purpose. i conducted 30
sample of survey in my project to judge the satisfaction level of customers which took
home loans.

 Secondary data
It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, news papers, magazines, preserved information in the
company’s database and website of the company and internet.

 TECHNIQUE OF ANALYSIS:
 Graphs and tables are used to analyze the data
 STATISTICAL TOOLS
 MS word document, computer, interne, email

 Literature review

Though there is a slight decrease in lending during the period 2008-09, the bank has
increased the lending’s substantially. The total amount of loans and advances as on
31.03.2008 is 26796.70 lakhs

. FORMULATING LOAN POLICY IN A BANK

Formulating and implementing loan policies is amongst the most important responsibilities of
bank directors and management. Since formulating a definite loan policy for the bank calls
for expertise, knowledge and experience in various aspects of a bank credit, the Board Of
Directors enlist the services and cooperation of the banks credit officers, who are well-versed
in the techniques of lending and are familiar with external and internal forces that have their
bearing on the lending activities of the bank. The credit polices is the outcome of joint efforts
of Board Of Directors and Credit officers of the bank.

In deciding the loan policies, the policy formulators must be very cautions, for the lending
activity of the bank affects both the bank and the public at large. They should give serious
consideration to all factors that are likely to influence the loan policies and work out their
policies accordingly. The important factors which go into the determination of the loan
policies of a bank are

1. Capital position

2. Earnings requirement

3. Deposit variability
 COMPANY PROFILE
Housing Development Finance Corporation Limited , founded 1977 by Ravi Maurya
and Hasmukhbhai Parekh, is an Indian NBFC, focusing on home mortgages. HDFC's
distribution network spans 243 outlets that include 49 offices of HDFC's distribution
company, HDFC Sales Private Limited. In addition, HDFC covers over 90 locations
through its outreach programmes. HDFC's marketing efforts continue to be concentrated
on developing a stronger distribution network. Home loans are also Sharcket through
HDFC Sales, HDFC Bank Limited and other third party Direct Selling Agents (DSA).
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The
corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross
premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new
business premium income at Rs. 1,624 Crores. The company has covered over 8,77,000
lives year ending March 31, 2007.
HDFC operates through almost 450 locations throughout the country with its
corporate head quarters in Mumbai, India. HDFC also has an International Office in
Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is the largest
housing company in India for the last 27 years.

 SCHEME OF REPORT

1. Introduction

2. Objective of study

3. Literature Review

4. Research objective and methodology

5. Company profile

6. Data analysis

7. Conclusion
  Bibliography
1) Berstain David(2008), “Home equity loans and private mortgage insurance: Recent Trends &
Potential Implications”,
2) Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House Price”.Journal of Housing
Economics
3 )Fanning (1982), “The Demand for Home Mortgage Debt” Journal of Urban Economics, Vol 11
No 2, Novmber, pp. 770-774
4) Godse (1983), “looking a fresh at banking productivity”, Journal of Real Estate Literature,
Vol. No. 13,

 Website
. Gathered information related to the growth of luxury car segment in India from
1. http://www.hdfcindia.com/
2. http://www.hdfcindia.com/others/popup/news/hdfc_fin_result_june_30_08.html
3. www.hdfc.com
4. http://www.iloveindia.com/real-estate/housing-finance- companies/hdfc.html
5. http://www.loansnews.info/Home-loan/hdfc-home-loans/

Prof Mrs. Manjusha kulkarni Mrs. Nilesh Ekande

(Project guide) ( signature of candidate)

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