A Synopsis

on

“A Study on Comparative Analysis of Housing Loan Schemes of HDFC Ltd.”

Submitted to

RTM Nagpur University

In Partial fulfilment of MBA programme

Submitted by

Name: Shubham Bade

Enrol No: 2015016602478323

Batch: 2019-20

Under the guidance of

Dr. Mubina Saifee

2019- 20

Green Heaven Institute of Management & Research, Nagpur

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 TABLE OF CONTENTS

1. INTRODUCTION.
2. COMPANY PROFILE
3. OBJECTIVE OF STUDY
4. HYPOTHESIS
5. PROCEDURE OF HOME LOAN
6. MARKET PLAYERS RESEARCH
METHODOLOGY
7. DATA ANALYSIS AND
INTERPRETATION
-COMPARATIVE ANALYSIS
-FINANCIAL ANALYSIS
8. LIMITATIONS OF STUDY
9. SUGGESTIONS AND
RECOMDENTATIONS
10. WEBILIOGRAPHY

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INTRODUCTION

Housing is a primary human need next in importance only to food and clothing. A
first priority for a youngster who begins life is therefore to plan for a house. This
takes precedence over other household expenditure and creature needs. Housing
however, is a major expenditure and cannot be funded out of a family’s normal
monthly income or savings. The prospective homeowner must look for a loan
substantial in size and so structured that he can repay it over a longer period of time,
in many cases almost one’s entire working life loan is offered to a borrower to
purchase or build a new house on the basis of his/her eligibility and he bank’s lending
rules. One of the important basic human needs is shelter. House is the ultimate dream
of every middle class family. Government gave encouragement for house finance
subsidiaries by offering number of tax concessions to individuals. With the overall
encouragement given to this sector, a number of players entered in housing finance.
One of the most important benefits of taking a home loan is the interest rate that is
allowed on the hime loan. Fixed and variable interest rate options are also available
for home loans. Many financiers also offer home improvement loans at the same
interest rate as they offer the home loans.

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INTRODUCTION OF COMPANY

Housing Development Finance Corporation Limited(HDFC)

Founder HusmukhBhai Parekh

Founded 1977
Industry Financial Services
Type Public Company
Status Operating
Listing & its codes BSE: 500010

NSE: HDFC
BSE SENSEX Constituent
CNX NIFTY Constituent
Registered Office Mumbai, India

Website www.hdfc.com

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ABOUT THE COMPANY

Housing Development Finance Corporation Limited of HDFC is an Indian

Financial Conglomerate based in Mumbai, India. It is a major provider of finance of
housing in India. It also has a presence in banking, life and general insurance, asset
management, venture capital and education loans.

STATEMENT OF THE PROBLEM

This study will help to understand the Home loan scheme of HDFC Limited.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.

OBJECTIVES OF THE STUDY

The main objectives of the study are as follows-

1. To know about the HDFC home loan and its products.

2. To have the first hand information on loan procedure, sanctioning and

disbursement in HDFC ltd.

3. To compare the performance of HDFC with other market players.

4. To study about the financial position for the financial year 2014-15 in
comparison with position in financial year 2013-14

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HYPOTHESIS

1) The USP of HDFC Ltd is to provide best deal in terms of low rate of
interest in the market.
2) As we all are aware that HDFC is the pioneer in Home Loan segment.

PROCEDURE OF HOME LOAN

By following RBI guideline the below mention procedure implemented in process of
home loan.
 Application Form
 KYC, Financial, bank statement to be verifying original & submission of true
copies to the organization.
 Personal Discussion with the credit department with client.
 Bank’s Field Investigation
 Credit appraisal by the bank and loan sanction
 Offer Letter
 Submission of legal documents & legal check
 Technical/Valuation Check
 Registration of property documents
 Signing of agreements and submitting post- dated cheques.
 Disbursement completion.

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MARKET PLAYERS

Other Market Players

 State Bank of India

 ICICI Bank
 Axis Bank

LIMITATIONS

Every study conducted may have certain short comings and unfortunately mine is also
a similar case. A few errors have crept in despite mine best efforts to avoid them but it
is expected that still mine study and findings are very much relevant.
 An error may have been due to the samples taken not conforming to the actual
population; this is because the sample was a convenience sample.
 Certain questions which are not properly responded by the Respondents.
 Personal bias or personal error of the interviewer might also have crept in,
some cases, while interpreting the respondents.
 There are several customers who don’t show proper interest in filling the
questioner as they feel that they won’t get any benefit after filling the
questioners and it’s just a waste of time for them.

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COMMON PROBLEMS FACED BY HDFC HOME LOAN CUSTOMERS:
 Rejection at the first stage due to incompatibility between the borrower’s
qualifications and lenders requirements. It could be the age criteria, income
criteria, improper documents, the institution not being able to verify the
customer’s details properly etc.
 With every application form for home loans, HDFC require about 0.25% to
1% of the loan amount to be submitted as the processing fees. The processing
fees are generally non-refundable. In simple words this means that for
whatever reasons, if the institution finds that customer doesn’t deserve the
home loan this fee won’t be returned.

RESEARCH METHODOLOGY

SCOPE OF THE STUDY

The study focuses on prevailing rate of interest, percentage of funding, tenure of

home loan, fee etc. being charged by other banks in comparison to HDFC. From this
study, HDFC can identify the difference between the schemes and charges charged in
comparison to with its competitors. Hence HDFC can change their schemes to
perform better than other banks and can attract more customers. The present study
focuses on analyzing the balance sheet and profit loss statement of HDFC for the last
two years.

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DATA COLLECTION

METHODS OF COLLECTION OF DATA

For the project number one i.e. The Comparative Study of Home Loans provided by
HDFCLTD. With other financial institutions various banks like SBI, ICICI, AXIX
Bank etc. were surveyed. The whole procedure of the disbursement of loan, various
schemes, interests rates etc. Factors were obtained from various banks. The whole
date was the organized in excel files and later on considering all the factors the whole
date was analyzed.

Collection of data refers to a purposive gathering of information relevant to the

subject matter under study and methods used depend mainly on the nature, purpose
and scope of the enquiry to be undertaken as well as on the availability of resources
and time. The researcher should keep in mind to types of data, primary data and
secondary data. The primary data are those, which are collected fresh and for the first
time, and thus happen to be original in character. The secondary data, on the other
hand, are those which have already been collected by someone else and which have
already been passed through the statistical process.

Tools of data collection:-

PRIMARY DATA
Primary date is collected from different banks of Chandigarh (shown above as Major
Players) regarding the comparative analysis of housing loan schemes offered by
different financial institutions.

SECONDARY DATA
Secondary data refers to the one which has already been collected by someone else.
The secondary data was collected from the office account records and annual report of
the company. Secondary data sources for this study are:

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 Websites of HDFC and other financial institutions
 Pamphlets/Brochures/Magazines
 Annual report
 Newspaper/ Articles
 Mangers of different banks deal in housing loans.

SUGGESTIONS AND RECOMMENDATIONS

All one need is the courage to innovate: the skill to understand clientele and the desire
to give them the best. Likewise following are some of the suggestions which would
help HDFC in improvising their working styles and performance.
 Most of the customers face problems regarding the rate of interest. HDFC
must inform its customers about the change in ROI, It automatically changes
but there is decrease in rate of interest, it doesn’t change automatically.
 There is lot of formalities in the loan disbursement process. Too much
documentation is dome customer is no aware of all the formalities. Therefore
paperwork should be more friendly and clear.
 After sale service is an issue of concern. Customers facing problems are not
attended on time. Employees are generally cooperative only when the loan is
sanctioned and disbursed. Therefore after sale service should be improved up
to the satisfaction level of the customer.
 Employees of HDFC should be more prompt towards customer’s grievances
and problems.

WEBILIOGRAPHY

www.google.com
www.hdfc.com
www.wikipedia.com

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CHAPTERIZATION

1) Introduction

2) Company profile

3) Research study

• Problem definition.

• Objectives of study

• Scope of study (research methodology

4) Research methodology

5) Data collection

6) References

7) Recommendation & suggestion

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