TRAINING REPORT

ON
(Comparative study of consumers behavior towards Home
Loans of HDFC And ICICI BANK)
Submitted to:
Satyug Darshan Institute of Engineering and
Technology
By:
ABHI KHANEJA
Batch 2015 2018
In Partial Fulfillment of
Bachelor of Business Administration
(IIFSB)

MAHARSHI DAYANAND UNIVERSITY

ROHTAK (HARYANA)
(November, 2016)

Satyug Darshan Institute of Engineering and

Technology
Bhupani Lalpur Road, Village Bhupani
Faridabad - 121002, NCR, Haryana, India
 DECLARATION

I, Abhi Khaneja hereby declare that this summer training

report is the record of authentic work carried out by me
during the period from ---------- to -----and has not been
submitted to any other University or Institute for the award
of any degree / diploma etc.

(Signature)

Date:
 BONAFIDE CERTIFICATE
This is to certify that Mr. Abhi Khaeja of Satyug Darshan Institute
of Engineering and Technology has successfully completed the
project work titled (Title of the report in CAPITAL) in partial
fulfillment of requirement for the completion of Bachelor in
Business Administration (BBA IIFSB) course as prescribed by the
Maharshi Dayanand University, Rohtak, (HARYANA).

This project report is the record of authentic work carried out by

him/her during the period from ------- to -------. He / She has worked
under my guidance.

(Signature)
Mr. Paramjeet Singh Ahuja
Assistant Professor, BBA Department
Project Guide (Internal)
Date:

Counter signed by
(Signature)
Mr. Ravi Bakshi
Department Coordinator (BBA Department)
Date:
 TABLE OF CONTENT

S.NO PARTICULARS PAGE NO.

1 Introduction to the study

2 Company Profile

3 Research Methodology
Objectives of the Study
Scope of the Study
Research Design
Method of Data Collection
Limitations of the Study
4 Data Processing & Analysis

5 Conclusion and Suggestions

6 Bibliography

7 Annexure
 Chapter-1
INTRODUCTION TO STUDY
 HOME LOAN
Housing is one of the best human needs of the society. It is closely linked
with the process of overall socio-economic development of a country.
India, being a highly populated country, there is a great need and scope
for the development of Housing Sector. Unfortunately, for some reasons
or the other, the housing sector in India has remained underdeveloped in
the past, however, it is hoped that there would be improvement in the
near future.

Housing is a growing industry. There is substantial gap between demand

and supply and is persisting for a very long period. According to an
estimate by the National Building Organization, the cumulative shortage
of total dwelling houses in the country by the end of 1991 was 31 million.
It is further estimated by this organization that the demand for housing
will be around 4.5million units, leaving a gap of one million housing
units annually. Hence, based upon this estimate, the cumulative shortage
of housing may reach to 41million units by the end of this century.

Presently, funds required per dwelling shelter are so high that the
individuals saving is not adequate to meet the expenditure of house
building. As a result, there is great demand for external housing finance.

Housing was given due priority only in 1988 when a National Housing
Policy was announce. The policy reflected the trust that housing was not
merely consumption expenditure but also a productive investment which
would provide economic activity in the country. Besides this, the policy
also envisaged that an impetus given to housing would stimulate
economic development through creation of substantial employment
opportunities. Consequently, the institutional mechanism for housing was
strengthened by the establishment of National Housing Bank (NHB) by
the Reserve Bank of India.

1) Customer must be at 21 year of age when the loan is sanctioned.

2) The loan must terminate before or when you twin 65 year of age or before
retirement,
Whichever is earlier.
3) Customer must be employed or self employed with regular source of income
LOAN AMOUNT

A number of factors are taken into account when assessing repayment

capacity.
Customer income, age, number of dependents, qualification, asset
&liabilities, stability and continuity of customer employment. Business is
one of them. However there are ways by which you can enhance your
eligibility.
If the customer spouse is earning put he/she as a co-applicant. the
additional income shall be included to enhance the loan amount.
Incidentally, if there are any co owners they must necessarily be co-
applicant customer fiances income can also be considered sanctioning
the loan on your combined
Income .the disbursement of the loan, however will be done only after
the submit proof of Marriage. Providing additional security like bonds,
fixed deposits & HDFC may also help to enhance Eligibility.
While there is no need for guarantor, it could be that having one might
enhance your credibility with us. If so, our loan officer would provide
customer with positive necessary details.
The final act to be sanctioned will depend on your repayment capacity.
However, what customers 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,
stamp duty, transfer charges are also included.

HOMELOAN

We at HDFC bank understand the value of owing your house. Our affordable
home loans can make all the difference to their dreams of owing home.

FIND THE RIGHT HOME

Provide facility for search of free online property. A one stop shop for all their
Real Estate needs.
WHAT YOU GET

0% brokerage on first sale properties access the entire market under our roof site
visits to the properties short listed by you. Help in negotiating the best price.
Help the legal documentation.

LISTINGS BELOW ARE THE STEP INVOLVED IN AVAILING OF A

HOMELOAN

A person applies for a home loan

The executive meets the applicant & briefs him the entire loan process,
requirements & the various options available.
The applicant chooses a housing finance company (HFC) & handover
the income
Document to the executive are the income documents are headed over to
the HFC for eligibility & approval.
The HFC verifies the documents & checks the repaying capacity, saving
habits, tenure of services etc. of the applicant & approves the loan
amount.
After approval an offer letter is given to the applicant by the HFC, along
with list of original title documents that have to hand over to the HFC.
The applicant gives the original property title document to the HFC
The HFC scrutinizes the legal & the technical aspects of the original title
document.
If the HFC is satisfy as to the legal & technical aspect of the document
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 construction) or a onetime
payment is made if property is ready for Possession.
The applicant gets possession of the property depending upon the level of
completion of the property.
The applicant can start paying the EMIs.

DISBURSEMENT

Customer loan will be disbursed after you identify & select the property or the
home that customer are purchasing and on their submission of the requisite legal
documents.
While the customer may be under impression that the list of documents asked for
it is rather extensive. Each and every single document asked for will be verified
& check to ensure their safety. This may take some time but the banks want to
ensure a clear title and will complete all the legal & technical verification to
ensure that they have full right to their home.
The 230 a clearance of the sellers or 371 clearance from the appropriate income
tax authorities (if appHDFCable) is also needed on satisfactory completion of
above, on registration of conveyance deed and on the investment of your own
contribution, the loan amount (as warranted by the stage of construction) will be
disbursed by HDFC
The disbursement will be in favor of the builder/seller.

At HDFC Bank Home Loans, we disburse the loan amount after you identify
and select the property or home that you are purchasing and submit the requisite
legal documents.
While you may be under the impression that the list of documents asked for is
rather extensive, please note that it is for your own good. Each and every single
document asked for will be verified and checked to ensure your safety.
This may take some time but we want to ensure a clear title and will complete all
the legal and technical verifications to ensure that you have full rights to your
home.
Your loan will be disbursed after you identify and select the property or home
that you are purchasing and on your submission of the requisite legal documents.

The 230 A Clearance of the seller and / or 37I clearance from the appropriate
income tax authorities (if appHDFCable) 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 HDFC Bank.

Disbursement Documents

Property documents (as per P&D for respective states and as asked by
empanelled lawyers for individual cases)
Facility Agreement
Disbursal Request Form
Cheque Submission Form for Pre EMI and EMI cheques
ECS or Auto Debit for HDFC Bank account holders or Post Dated Cheques for
EMI / Pre EMI
Personal Guarantors Documents (PG Form, Photograph, Identity Proof,
Address Proof, Signature Verification and Income documents, if appHDFCable)

In case of property is owned by a company

Memorandum of Entry
Form 8
NOC

AMOUNT

This largely depend on a no. of facts like ones age ,profession, salary, the city
one reside is among other such factors. it varies between 2.1lakh to 1crore
depending on the lender- as the rule of the thumb, depending on HFC one have
to cough up 15% - 20% of the loan amount as the down payment. For smaller
amount, this may not be much. But for figure remaining into lakh this could
make loads of difference. For e.g. an apartment of costing Rs 10 lakh may get
85% financing, so one will have to arrange for remaining Rs 15 lakh. If one
takes this into amount the additional thousands will definitely put a strain on
ones finances
.

TENURE

Generally the maximum tenure of home loans is 15 years, with a few lenders
offering tenure of 20 years or more.HDFC offers 15 year loan. The longer the
tenure, the more one pay in total interest but ones monthly payment will be less.
So depending ones earning potential & bank balance one can choose an
appropriate tenure. An important requirement of most of the 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. Repayment is in the form
of EMIs (equated monthly installment). The longer the tenure, the more one
pays in interest, but ones monthly payment will be less. The interest rate of
HDFC is

Tenure Interest Type Interest Rate

.15 -20 Fixed 13.75 %

10 -15 Fixed 16 %
5 - 10 Fixed 16 %
1-5 Fixed 16 %
1-5 Floating 16 %
5 - 10 Floating 11.25 %
10 - 15 Floating 16 %
15 - 20 Floating 16 %

REFINANCE

This is 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 another loan before its natural tenure.
It gives one the opportunity of prepaying ones high cost debt and get a lower
cost one. In todays falling interest rate scenario one should use this vehicle to
lower ones debt payment as much as possible. The lender facilitates the shift by
paying the outstanding and transferring the asset to other portfolio.

MISCELLANEOUS CHARGES

The interest rates and EMIs are not only the cost factor. Never underestimate
how much the processing fee and administration fees amount to. A 0.5%
administration fees and 0.5% processing fee on say, a Rs.500000 loan would be
Rs.5000. other timesit 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%
or 3%. The various other fees, which one is required to pay along with the
margin amount are:

INTEREST TAX:
This is tax payable on the interest paid on a home loan and not the principal.
This is sometimes included in the interest rate of the loan, or may be charged
separately as interest tax.

PROCESSING CHARGE

It is the fee payable to the lender on applying for a loan. It is either a fixed
amount not linked to the loan or may be a percent of the loan amunt. The loan
amount received by you can be less than processing fee.

PREPAYMENT PENALTIES

When the loan is paid back before the nd of the agreed duration a penality is
charged by some banks or companies, which is usually between 1% and 2% of
the amount being prepaid.

OTHERS

It is quite possible that some lends may levy a documentation or consultant

charge.

HDFC BANK ANNOUNCES ITS BASE RATE, VALID FROM JULY 1,

2010

HDFC Bank has announced a shift in the existing benchmark rate from Floating
Reference Rate (FRR)/ I-BAR the Base Rate (I-Base). The same will be
effective for all its mortgage products from July 1, 2010.
The HDFC Bank Base Rate (I-Base) has been fixed at 7.50%. This is the
minimum rate that HDFC Bank will charge to its new customers.

Who can avail of these loans?

According to lending institutions, any Indian resident who is over 21 years

of age at the beginning of the loan and below 65at its maturity can avail of the
loan. Salaried Employees as well as Self- Employed citizens can apply. NRI
Salaried and RBI Self Employed, under RBI guidelines, can approach only
nationalized banks and other HDFC for loans.

Why should one option for a loan to buy a house?

Taking a loan seems like a good option when the money at hand is insufficient to
buy the house of your dreams. Consider couples in their twenties and thirties.
They enjoy a good income currently, buy their accumulated capital isnt enough
to purchase a house. Whereas a home loan can give them access to capital their
current earnings.
Also, if you take a 10 years old loan when you are thirty, you could repay it by
the time youre forty. So you dont have to be burdened with the interest and are
free to plan your retirement savings.

The Quantum of loan that one can avail of :

Loan sanctioned depend on your repayment capacity which is based on your

current income and your future repayment capacity. You would include your
spouses name to enhance the loan amount.The maximum loan can be sanctioned
varies with each bank/institutions and ranges from Rs.10 lakhs to Rs. 1 crore.

Benefits of taking a home loan:

A home loan is very different from a personal loan like a car loan for instance.
You can utilize a home loan for financing an asset that will hold its value and
even appreciate over the period of the loan. Though its price could fluctuate in
the short terms, Total Estate will show capital appreciation over the years. The
value of your house generally while the loan remains constant. If you had opted
to wait, save up and buy a house, it would, in the long run cost you much more;
home loans also come with many tax benefits.

Tax benefits of taking a home loan:

The income tax authorities look with favor upon those servicing a housing loan
from specified financial institutions. And, it is up to you to be wise enough to
take advantage of this.

Section 24 of the Income Tax:

Interest on loan till Rs.1.5 lakhs per annum is exempted form income tax (under
section 23/24(1) of the Income tax act).

Section 88 of Income Tax Act:

You get a 20% rebate on repayment of principle during a financial year. Once
again, over the years, the principle repayment eligible for rebate has been
enhanced from Rs.10,000 to the current limit of Rs.20,000 Stamp duty,
registration fee or transfer of such house property to the assesses is also
considered under this amount.

Financial Institutions, which give, home loans:

Leading Banks Housing finance companies

FINANCIAL IMPHDFCATIONS OF AVAILING A LOAN (SMALL OR

BIG)

There are several expenses involved apart from repayment of the actual loan
amount:

1. Processing fees- A processing fee (PF) is charges at the time of submission

of the application form and covers expenses incurred for processing the
application form. This fee has to be paid upfront by the customer in some
cases, it is non-refundable.
2. Administration fees- to meet operating expenses.
3. Pre-EMI- A simple interest calculated on the disbursement amount in case
of a plot under construction.
4. EMI- The EMI is an abbreviated form of the equated money installment
and is simply referred to as monthly installment in common parlance. And, being
a self-explanatory term that is exactly what it is. The amount you will have to
pay you financier every month when repaying your loan. Being a monthly
payment, at the end of the year, you would have paid 12 EMIs.

TYPES OF LOANS AVAILABLE

Broadly two types- fixed rate and variable rate loans; while the former deals
with a fixed rate of interest over the entire duration of the loan, the latter has the
rate of interest changing according to the fluctuations in the market.

LOAN THAT ONE CAN AVAIL

Up to 85-90% of the total cost based primarily upon the individuals payback
capacity.
GENERAL CONDITIONS THAT GOVERN A HOME LOAN:

These are likely to vary with respect to the different types of housing loans:

The maximum period of the loan is normally fixed by HFIs. However,

HFIs do provide for different tenors with different terms and conditions.
The Installment that you pay is normally restricted to amount 45% of
your monthly gross income.
You will be eligible for a loan amount, which is the lowest as per your
eligibility. This is calculated on the basis of your gross income and
payback capabilities.
Some HFIs insist on guarantees from other individuals for due repayment
of your loan. In such cases you have to arrange for the personal
guarantee before the disbursement of your loan tasks place.
Most HFIs have a panel of lawyers who go through your property
documents to ensure that the documents are clear and are not
misrepresented. This is an added benefit that you get when you avail of a
loan from an HFI.
You repay the loan either through Deduction against Salary, Post dated
cheques, and standing instructions or by Cash/DD.

WHAT ALL ONE CAN TAKE THE LOAN FOR?

There are different types of home loan tailored to meet ones needs heres all
some of them.

Home purchase loan: This is the basic home loan for the purchase of
new home.
Home improvement loans: These loans are given for implementation
repair works & renovation in a home that has already been purchased by
the client.
Home construction loan: This is available for the construction of new
home.
Home extension loan: This is given for expanding or extending an
existing home for e.g.: addition of an extra room etc.
Home conversion loan: This is for those who have financed the present
home with home loan & wish to purchase& move to another home for
which some extra funds are required through home on version loan
,existing loan is transferred to the new home including the extra amount
required eliminating the pre payment of the previous loan.
 Land purchasing loan: this loan is available for the purchasing of land
for both construction and investment purpose.
Bridge loan: these are designed for those people who wish to sell the
existing home & purchase another one. The bridge loan help finance the
new home, until a buyer is found for the home.

CHAPTER-2
COMPANY PROFILE
 HDFC BANK

INTRODUCTION

HDFC (Home Development Finance Corporation) Home Loan, India have been
serving the people for around 3 decades and providing various housing loan
according to their varied needs at attractive and reasonable interest rates. Owing
to their wide network of financing, HDFC Home Loans provide services at
doorstep and helps you find a home as per your requirements.

COMPANY PROFILE

HDFC Limited founded in 1997 by Ravi Maurya and Hansmukh bhai Parekh, is
an Indian NBFS focusing on home loans. 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. HDFC is the largest housing company in India for the last
27 years.
HDFC was amongst the first to receive an in principal approval from RBI to set
up a bank in the private sector, as a part of the RBIs liberalization of the Indian
banking industry. It was incorporated on 30th august 1994 in the name of HDFC
Bank Limited, with its registration office in Mumbai. HDFC began its
operations as a scheduled commercial bank on 16th January 1995.

ABOUT THE PROMOTER

HDFC, the promoter, is Indias premier housing finance company and enjoy 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
operation and profitability. Its outstanding loan portfolio covers over a million
dwelling units. HDFC has developed significant expertise in retail mortgage
loans to different market segment and also has a large corporate client base in
relation to its housing related credit facilities and its investment in portfolio.

With its tremendous brand equity, the 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
Investment Limited) owns about 31 % of the equity. They had started with a
strategic alliance with the Natwest group in UK with 20% equity, which has
divested later on. The bank has also signed a memorandum of understanding for
strategic business collaboration with chase Manhattan Bank in Feb. 2, 1999.
BUSINESS PHILOSOPHY

The mission of the 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 standard 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 level of integrity and corporate governance.

The business philosophy at HDFC bank is based on four core values: operational
excellence, customer focus, and product leadership and people competitors.
The Bank faces the strong competition in all of their principal lines of business.
Their primary competitors are large pubHDFC 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 the commercial lending. Foreign banks have focused
primarily on serving the needs of multinational companies and the 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 case of retail loan products. The retail deposit
shares of the foreign banks are quite small in comparison to the public sector
banks, and have also declined in the last five years, which we attribute
principally to the 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 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, the compete principally with
foreign banks in foreign exchange and derivatives trading as well as HDFC and
other public sector banks ion the foreign exchange and money market business.

LOANS

HDFC brings back you a wide range of loans to cater your financial needs.
The bank offers the following loans:

1) Personal loans.
 2) Consumer loans.
3) Auto loans
4) Loans against shares
5) Loans against RBI bonds
6) Loans against insurance
7) E- Instant loans give the facility of loans approval in the 60 second on
the internet.
8) HDFC has offices spread all over the country. This extensive network
helps HDFC in providing services to large and well spread out clients.
This network of interconnected offices (on data circuits) helps HDFC to
process application for purchase of property anywhere in India. HDFC
has further established an office in Dubai and service associates in
Kuwait, Oman and Quarter to make to easier for Middle East based non-
resident Indians to apply for loan to HDFC-India.
9) HDFC is pioneer of housing finance in India and has been a leader in
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 LOAN SCHEME PURPOSE

HDFC Limited offers loans for the following purposes:

Land purchase
Home construction/purchase
Home extension
Home improvement loans
Short-term bridge loans
Non-resident premises loans for professionals.

LOAN AMOUNT

You can avail of maximum of up to 85% of the cost of the property, including
the cost of the land.

LOAN TENURE

You can repay the loan over a maximum period of 20 years under both FRHL
and ARHL. Repayment will not ordinarily extend beyond your age of retirement
(if you are employed) or on your reaching 65 years of age, whichever is earlier.
However, HDFC will endeavor to determine the repayment period to suit your
convenience.
RATE OF INTEREST

The rate of interest of HDFC is 8.75%.under the monthly rest option, interest is
calculated on monthly rests. Principal repayment is credited at the end of every
month.

At HDFC you have the choice between the normal FRHL and the innovative
ARHL. Alternatively you can also avail the part of the loan under FRHL and
balance under ARHL.
HDFC also offers you the option to switch between schemes for the nominal fee.
Interest rates on ARHL will be linked to HDFCs Retail Prime Lending Rate
(RPLR) which currently is 13.75% .The rate on your loan will be revised every
three months from the date of first disbursement, if there is a change in RPLR,
i.e. the interest rate on your loan may change. However, the EMI on the home
loan disbursed will not change. (if the interest rate increases, the interest
component in an EMI will increase and the principal component will reduce,
resulting in an extension of 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 payment made during the year.

SECURITY

Security for the loan normally is first mortgage of the property to be financed
and/or such other collateral security as may be necessary. Interim security may
be required, if the property is under construction. Collateral or interim security
could be assigned to HDFC of life insurance poHDFCies, 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
the HDFC.

Loans from HDFC are available even if you are availing a housing loan from
your employer. HDFC has already entered into arrangements with several
employers enabling employees to avail of loans both from the employer as well
as HDFC for the same property. Please do ensure that the title of the property is
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.
DOCUMENTS/SUPPORTING DOCUMENTS TO BE ATTATCHED:

FOR ALL THE APPLICANTS:

 1) Allotment letter of the o-operative society/association of the apartment
owners.
2) Copy of approved drawings of proposed
construction/purchase/extension.
3) Agreement for sale/sale deed/detailed cost estimate from
architect/engineer for the property to be
purchased/constructed/extended/renovated.
4) If you have been in your present employment/business or profession for
less than a year, mention an a separate sheet details of the of the
occupations for previous five years, giving position held, reason for
change and period of same.
5) Applicable processing fees.

6) Proof of residence: attested copy of any one of the following:

a) Ration card
b) Passport
c) Driving License
d) Voters identity card
e) Current telephone bill/electricity bill/gas bill
7) Proof of identity: attested copy of ay one of the following:
a) Passport
b) Driving License
c) Voters identity car5d identity card issued by the employer (if
employed in state/central government)
d) PAN card
8) Certificate of loan outstanding issued by the lender (for refinance cases
only)
9) Any other information regarding your repayment capacity that is
necessary and will assist HDFC in appraising the loan proposal.

ADDITIONALLY

IF YOU ARE EMPLOYED:

1) Verification of the employment form with only part I filled in.

2) Latest original salary slip/salary certificate showing all deductions.
3) If your job is transferable, permanent address where correspondence
relating to the application can be mailed.
4) A letter from your employer agreeing to deduct the EMI towards the
repayment of the loan from your salary. This will expedite the processing
of your loan application.
 5) Your updated original bank pass book/s or original bank statement/s
showing salary and saving entries for the last six months.
6) A photo-copy of your Form-16 (issued by your employer) for the last
assessment year.

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 the Chartered Accountant.
2) A note giving information on the nature of your business/profession,
form of organization, clients, suppliers, etc.
3) Copies of individual tax chalans for the last three years
4) Copy of advance tax chalan (if any)
5) Your updated original Bank Pass Book/s or Original Bank Statement/s
showing saving s entries for the last twelve months.

TAX BENEFIT

You are eligible for certain tax benefits on principal and interest components of a
loan under the Income Tax Act, 1961.

ELIGIBILITY

The repayment capacity as determined by the HDFC will help in deciding how
much we can borrow (the cost of the property or Rs.1crore whichever is lower).
Repayment capacity takes into consideration factors such as income, age,
qualifications, number of dependents, spouses income, assets, liabilities,
stability and continuity of occupation and saving history. And, of course,
HDFCs main concern is to make sure you can comfortably repay the amount
you borrowed.

ABOUT THE PRODUCT

HDFCs 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 the customer requirement.

Home loans can be applied for by either individually or jointly. Proposed owner
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 avail
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. 10000000 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. HDFCs main concern is to help individuals comfortably repay the
borrowed amount.

SUPERIOR PROCESSING CAPACITY:

HDFC has over the years invested substantially into the computer systems and
training. This has enabled HDFC to respond to customer needs and build up
capabilities to approve loan 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
the loan to HDFC-India.

EXPERIENCED TRAINED STAFF:

HDFC is a pioneer of housing finance in India and has been a leader in the
business for the last 25 years. HDFC has vast experienced and 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 owing a house, and not just in the business of providing finance.
Keeping this in mind HDFC will provide free counseling 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 the HDFCs offices.

LEGAL AND TECHNICAL GUIDANCE:

HDFC has qualified legal and technical staffs who liaise with developer to
collect and scrutinize the property documents and permissions. We have master
files of most projects being developed by the reputed developers. It has always
been HDFCs endeavor to protect the interest of the borrower, as we believe that
the buying a house is one of the most Important decisions in this life.

FLEXIBLE (CUSTOMIZED) REPAYMENT SCHEMES:

Keeping in mind the fact that each individual has unique problem requiring
unique solution, HDFC has developed various repayment options like Step Up
Repayment Facility (SURF), Flexible Loan Installment Plan (FLIP) Balloon
Payment plan and Structured Repayment Plan.

STEP UP REPAYMENT FACILITY

HDFC Ltd has a hitherto with you, right through .This statement HDFC
proves time and Again by developing close relationship with individual
customers and by constantly
Developing and marketing in the market new and innovative products that
increase the
Comfort level of the customers. Along the same philosophy HDFC came up with
Step Up Repayment Facility which once again reassures customers that HDFC
helps you achieve your dream.

This facility is especially helpful to those customers who want to get a loan on
an amount
that is not falling within the permissible limit of their repayment capacity. It also
is in line with HDFCs aim to provide greater degree of personalization in service
and the tools. Hence there can be the situation wherein the applicant is not in the
position to pay the required EMI which is calculated by the ILPS (Individual
loan processing system).HDFC in this case offers to let the applicant use one of
the two plans to repay the loan amount.

The EMI Chooser 1

In this plan the applicant gets the advantage from HDFC to select the amount
that
he wants to pay as his fist EMI. This means that HDFC will let the applicant
decide
what amount he can comfortably pay to HDFC in the first term of his Loan
Repayment Schedule. The system will calculate the next two EMIs for the next
two terms

The customer can hence decide when he wants to repay the maximum amount of
the Loan to HDFC and when he wants to repay minimum leftover or remaining
amount of the loan in the form of still smaller EMIs.

The EMI Chooser 2

This plan is an extension of the aforementioned plan .In this plan HDFC helps
the Applicant by letting him choose two EMIs .This means that the Applicant
can select the amount that he wants two pay for both the First and the Second
terms of his repayment schedule. This translates into more help and more
convenience to the applicant. However the benefits of these plans dont stop
here.

The Applicant can also allocate the term length for which he wants to pay what
amount
This translates into a great advantage to the Applicant .He can now link

1. His current salary

2. The rate of average increment,
3. His existing and expected obligations,
4. His existing and expected expenses
5. The length of the term among others.

HDFC can hence assist the Applicant in developing a much more personalized
loan plan as compared to its competitors in the Housing Loan market.

The Applicant can also save money by using these plans .This is because the
total Outflow in case of a regular plan is more as compared to these special
plans. The Applicant will hence obtain more benefit in case of Prepayment and
elsewhere.

C. All Loans from HDFC Ltd are subject to Tax exemption and be treated as
Rebate. Hence HDFC lets the customer save their hard earned money.

FLEXIBLE LOAN INSTALMENT PLAN (FLIP)

Another First of its kind product from HDFC .This is also to assist the Applicant
to easily secure a loan in the following condition. FLIP is used when the
applicant and co-applicant want to jointly repay the loan. There is however a
problem in the situation which would otherwise not allow the loan to be
sanctioned. There are two applicants hence two incomes .Therefore in the joint
payment they can combine their income to repay the loan .Let there be Mr. A and
B who want to take a loan for 14 years .A is the father and B is the son of A
.Now consider the situation in which A and B want to take a loan and jointly
repay it .But A is 52 years old and B is only 25 .Hence A will retire after 8 years
and will not be repaying the EMI but B can continue to repay the loan. In that
case although there will be a problem at other places but in HDFC this is solved
by taking different incomes in the terms. Hence the income that will be
considered earlier will be the fathers income and at his retirement or at any
other selected stage of repayment we will begin to consider only the income of
the son.

The advantage of FLIP in terms of the Applicant is that of joint payment,

personalization, easy repayment, and freedom from many possible problems. In
the Illustration the father is going to pay only for 105 months and after that we
are to consider the sons salary only for the next remaining 60 months.

PARI PASSU/SECOND MORTGAGE ARRANGEMENT:

HDFC has a tie-up with a large number if public sector organizations and banks
which enable 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 repay his loan.
ELECTRONIC MAIL:

HDFC through its E-mail services can promptly respond to queries. In addition,
HDFC can promptly send its application form cum brochure and other detail on
its loan products by e-mail to interested individuals. For Non-resident Indians
our interactive website offers another means of contacting us. In our effort to
reach out globally dispersed Non-resident Indians, we will continuously enhance
our website.
HOME CONVERSION LOAN:

HDFC offer the option of a home conversion loan to its existing customer who
are interested in moving to a new house. Through this scheme the customer 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 customers the option of selling t6heir existing
house if they wish to, without having to repay their old loan

APPLICATION CAN BE MADE BEFORE SELECTING THE

PROPERTY:

Individuals may make an application for the 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 its existing customers HDFC offers Home Improvement

Loan up to 100% of the improvement cost as compared to the home
improvement loans up to 70% of the improvement cost offered to the general
public

CHARGES:

For Fixed Rate Home Loan (FRHL) an early redemption charge of 2% of the
amount being prepaid is payable, if the amount being repaid is more than 25% of
the opening balance. However under Adjustable Rate Home Loan (ARHL)
option early redemption charges of 2% is payable only in case of commercial
refinance. You may be required to submit the copies of your Bank Statements or
any other documents that HDFC deems necessary to verify the source of
prepayment.
You can make payment for fees and charges by cheque marked payees account
only drawn on a bank in a city where HDFC has an office or by demand draft
(payable at par to HDFC).

HOW TO APPLY

Customer can either download (in PDF format) the application form or get the
application form by E-mail. Alternately the customers can collect the application
form from any of your nearest HDFC offices. Customer need to submit it along
with supporting documents and processing fee at any HDFC office that is
convenient to the customer. Customers can make payments by the cheque
marked payees account only drawn on a bank in a city where the HDFC has
an office, by demand draft (payable at part to HDFC) or by cash. Customer can
make an application at any time after they have decided to acquire a house even
when the house has not been selected or construction has not commenced.
HDFC will consider your application, make enquiries as it deems necessary and
convey its decision to you. On acceptance of the offer, you will have to pay an
administrative fee for the loan approved. Customer can take the disbursement of
the loan after the property has been completed and you have invested your own
contribution in full (own contribution is the total cost of the property less
HDFCs loan). The loan will be disbursed in full or in suitable installments
(normally not exceeding three in number)taking into account the requirement of
the funds and the progress of the construction, as assessed by HDFC and not
necessarily according to the builders agreement.

ICICI HOME FINANACE COMPANY LTD

Consumer friendly housing finance company

HISTORY

ICICI home finance company ltd was incorporated on May 28, 1999 as 100%
subsidiary of ICICI Personal Financial Services Limited (ICICI PFS). ICICI
finance company Ltd was set up with objective of providing long term housing
loan to individual and corporate. The company was registered on March 302000
with National Housing Act, 1987 in terms of Housing Financing Companies
(NHB) direction, 1989 with effect from May 3, 2002, ICICI home finance has
become a 100% subsidiary of ICICI bank Ltd.

OVERVIEW

ICICI home loans are at present available to customer in 150 cities/towns across
the country. Loans are offered for the purchase of new homes. Purchase of resale
homes and home improvement. Besides the companies also offers loans for
commercial property and loans against existing property. The loans are offers foe
tenors up to 30 years. The company has also introduced several customers
friendly services such as door step services, 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 non banking financial banking
companies(NFBc) from the reserve bank of India (RBI)on sep 10, 1997 under
the new section 45 I A of the RBI act ,1939.

During the year 1998-1999, there was a significant shift in the companys
operations from leasing and hire purchase to distribution and servicing the all the
retail products for ICICI, including two auto loans, consumer durable finance &
another financial products. The company has become a critical part of ICICIs
retail strategy aims at offering a comprehensive range of products &services to
retail customers. In view of this reorientation of the business, the name of the
company was changed from ICICI Corporation Limited to (ICICI PFS) effective
march 22, 1999.

ICICI commenced its custodial services business in 1992 & played a

pioneering role in the business when it accepted the custodian role for the first
ever GDR issue by an Indian corporate (reliance industry Ltd). ICICI has a
major market share in the segment act as custodian of 41 ADR/GDR issues & in
the process, has established the relationship will all the major overseas
institutional investors including foreign institutional investors (FIIs) & as on the
June 30,1999, the value of asset held in our custody exceeded us 2 billion. At
present, ICICI offers a full range of custodial services for primary and secondary
market operation pertaining to debt, equity, money market instruments
GDR/EURO issues conversion & GDR arbitrage to:
1) Overseas institutional investors like

a) FIIS
b) OCBS
c) OFFSHORE FUNDS
d) VENTURE FUNDS
2) Overseas government agencies.
3) Institutional looking for proprietary investment.
4) Mutual funds
5) Private investment companies
6) Large corporate
7) High net worth individual

As a value added services ICICI custodial services division assist the client in
preparation, submission & follow up for various applications by FIIS/OCB with
SEBI/RBI

APPHDFCATION PROCESS OF YOUR HOME LOAN

Your search for the perfect home loan ends here at ICICI Bank Home Loans,
even before your have found the perfect property.

The moment you decide to buy a home, you can put in your application for a
home loan. Yes, you can apply for a home loan even before you have selected
the property.

The property need not even be in the same city where you are residing. The only
condition being that ICICI Bank has Home Loans operations in both the cities.

Should there be a change in your financial status or plans, you can withdraw
your sanction within 6 months of approval of your home loan.

However, we are always ready to assist our customers in the event of legitimate
problems. And, we might reconsider this if we find that there are satisfactory
reasons for the delay.
And, neither would we charge you extra for this delay.

If it is refinancing you are interested in, it is possible within 6 months from the
date of purchase of property.

PERSONAL BANKING

At ICICI bank they are committed to making banking a pleasure. This

commitment is manifested in services they offer a wide range of account,
investment scheme & facilities. Each services offer their customer security,
flexibility of operations & maximum returns.
The various services provided under this is as follow:
1) Maximum cash-saving account
2) Quantum fixed deposits
3) Quantum optima value added saving account
4) Money plus-current act
5) ATM
6) Treasure chest cocker facility
7) Power pay roll
8) Retail treasury instruments

CORPORATE BANKING

MOBILE COMMERSE
ICICI bank now brings back account & ICICI credit card to customers fingertips
.with mobile commerce customer can perform a wide range of query based
transaction from their orange tm (Mumbai) & Airtel (DELHI) mobile phone ,
without even making a call.

1) Access multiple accounts

2) Balance inquiry to the linked account
3) Cheque book request
4) Mini statement listing of last three transactions5) Request for account
statements (by mail or fax)

ICICI

1) Attractive IR
2) Door step service from enquiry stage till the final disbursement.
3) No guarantor required.
4) Can transfer your existing high interest rate loan.
5) Special 100% funding for special properties.

FACTORS AFFECTING YOUR LOAN AMOUNT

WithICICI Bank Home Loans, you can get a home loan suited to your needs.
The home loan amount depends on your repayment capability and is restricted to a
maximum of 80% of the cost of the property or the cost of construction as applicable. A
number of factors are taken into account when assessing your repayment capacity.
Repayment capacity takes into consideration factors such as income, age,
qualifications, number of dependents, spouse's income, assets, liabilities, stability,
continuity of occupation and savings history.
However, there are ways by which you can enhance your eligibility.

If your spouse is earning, put him/her as a co-applicant. The

additional income shall be included to enhance your loan amount.
In case of any co-owners they must necessarily be co-applicants. The final
amount to be
sanctioned will depend on your repayment capacity. However, what you ultimately are
entitled to will have to conform within the limits fixed for each loan.

Also, when the company looks at the total cost, registration charges, transfer charges
and stamp duty costs are included.

Documents required for Home Loan Sanction

ICICI Bank Home Loans, Indias leading Home Loans Provider, offers
attractive interest rates and unbeatable benefits to ensure that you get the best
deal. Keeping your convenience in consideration, we ask you for minimal
mandatory documents for the sanctioning of your home loan, to keep the
process totally hassle-free.

We require the following documents to sanction your home loan:

Sanction Documents Completed application form

Photograph
Fee Cheque
Photo Identity Proof
Age Proof
Signature Verification Proof
Residence Address Proof
Document for the Salaried
Last 3 months Salary Slip
Form 16
Bank Statement for the last 6 months from Salary Account
Repayment Track record of existing loans / Loan closure letter

Document for the Self-employed

Income Tax Return / Computation of Total Income / Auditors Report / Balance
Sheet / Profit & Loss Account certified by Chartered Accountant for last 2 years
(3 years for Home Equity) (both for business and personal of partners/directors)
Bank statement for the last 6 months from operating account
Repayment Track record of existing loans / Loan closure letter
Board Resolution in case of a company
Proof of existence
Office Address Proof

Photo Identity Proof, Residence Address Proof, Signature Verification

Statement for all the main partners / directors.
 CHAPTER-3
RESEARCH
METHODOLOGY
 OBJECTIVES OF STUDY

The study mainly aims at studying the housing activities in Faridabad and financing
by HDFC & ICICI in FARIDABAD. In addition to measuring the service quality
being provided by HDFC & ICICI.

The study specifically aims at :

Studying the importance of housing, demand for housing and house

finance in India.

Evaluation of the role of HDFC & ICICI in financing of houses in

FARIDABAD.

To identify the popular schemes of HDFC & ICICI.

To analyze the trends in housing finance by HDFC & ICICI.

 To ascertain the problems of borrowers of HDFC & ICICI while availing
housing loans.

To evaluate the impact of tax considerations on housing finance with

respect to HDFC & ICICI.

Measuring the service quality being provided by HDFC & ICICI to its
customers in FARIDABAD.

Research design
Research Design: A research design is the specification of methods and
procedures for acquiring the information needed. It is the overall operational
pattern or framework of the project that stipulates what information is to be
collected from which source by what procedures. Research design denotes the
description of the research design. The aim was to collect relevant information,
which fulfill our requirement and can be analyzed at a later stage of study
without any problem. This was to be done in minimum expenditures and least
efforts and in a set period of time. For my research I select DESCRIPTIVE
RESEARCH DESIGN to know the Comparative Study Of The Home Loan
Scheme Offered By HDFC Bank And ICICI Bank and Assessing The level
of Consumer Satisfaction in FARIDABAD City. This helped us in having
enough provision for protection against bias and maximizes reliability.
Descriptive study, as its name implies, is designed to describe something for
example, the characteristics of the users of a given product, the degree to which
product use varies with income, age, or other characteristics.

Advantages Of Descriptive Study:

Involve relatively large number of observations.

Analysis is more objective.

Averages and percentages are calculated.
METHODOLOGY

Proposed study is an empirical one and is based on Primary data.

1)Primary data:
I will use primary source of data that is structured questionnaire. As these banks are
established from so many years, so many researchers have done research on this
topic, so we will find secondary data also and also use this data for the help of this
research. So, this research data will collected from the primary source and secondary
source. Our method of collecting the data is from the questionnaire that will be filled
by the respondent from the sample, it will be structured questionnaire.

2) Sample:

There are many housing finance institutions in India. As it is difficult to

cover the beneficiaries of all the housing finance institutions, two major players in
India like Life Insurance Corporation Housing Finance Limited (HDFC) and
Housing Development Finance Corporation (ICICI) are selected for the proposed
study. As many as 500 questionnaires were distributed among 500 beneficiaries of
HDFC and ICICI to obtain information in FARIDABAD region.

3) Statistical Tools:
The data collected will be analyzed in one way and two way tables and
through Statistical techniques such as percentages, averages and growth rate.

Questionnaires:
This method of data collection is quite popular, particularly in case of big
enquiries. A questionnaire is a method of obtaining specific information about a
defined problem so that data, after analysis and interpretation, results in a better
appreciation of the problem. In order to motivate respondents and to get best of
the information from them, I was tried to build questionnaire that is interesting,
serve my objective, unambiguous and easy to complete and is not burdensome.
The aim was to enable ease in analysis and facilitate easy classification of
response to get meaningful outcome within acceptable limits.
A few were in disguised, where the true purpose was hidden but was sufficient to
bring in the right information from respondents. Depending on the requirement, the
questionnaire was prepared. The sequence of questions in questionnaire was kept in a
logical order. It included questions based on Simple Category scale, Multiple Choice
Trial and changes the finally evolved questionnaire was being used for survey work
 LIMITATIONS OF STUDY

Following are the limitations of the study:

1. The study covered only geographical boundaries of FARIDABAD City only which
come under FARIDABAD Municipal Corporation (FMC).

2. Due to the problem of illiteracy some house loan HDFC applicants and loan takers
could not respond to questionnaire properly. However care was taken to HDFC their
opinion as far as possible.

3. While studying the aspects of respondents of HDFC and ICICI about

performance appraisal, certain items of investigation had to be dropped in view of
non-response from the respondents. Therefore, the study of respondents (borrowers)
perception is limited to the items which received enough response from them.
 CHAPTER-4
DATA PROCESS AND ANALYSIS
1) What is your occupation?
HDFC ICICI
Business Man 15 17
Student 0 0
Government Employees 22 23
Other 0 0
House Wife 9 7

Interpretation:-
Total Number of Respondents was 46 of HDFC & 47 Respondents was ICICI
0 of our Respondents was Students in both banks.
22 & 23of the Respondents were into government employees in HDFC &
ICICI respectively.
15 & 17 of our Respondents were Businessman in HDFC & ICICI.
9 & 7 of our Respondents were Housewives in HDFC & in ICICI.
None of our Respondent belonged to the category of others in both banks.
4 respondents did not answer HDFC & 3 in ICICI.

2) From how many years you are associated with this bank?
 HDFC ICICI
Less than 1year 10 17
1-5 years 24 19
More than 5 years 12 11

Interpretation :-
Total Number of Respondents was 46 in HDFC & ICICI it was 47
10 persons are associated in HDFC & in ICICI 17 persons less than 1 year
24 persons are associated in HDFC & 19 persons in ICICI from 1-5 years.
12 persons are associated from more than 5 years in HDFC & in ICICI
there was 11 persons.

3) How do you come to know about the home loan schemes of that
bank?
 HDFC ICICI
Newspaper 1
12
8
Television 14 22
Internet 10 9
Other sources 4 4

Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
18 persons came to know from newspaper in HDFC & in ICICI it was 12.
14 persons came to know from television in HDFC & in ICICI it was 22.
10 persons came to know from internet in HDFC & in ICICI it was 9.
4 persons came to know from other resources HDFC & in ICICI it was 4.

4) Are you aware of these type of home loans?

HDFC ICICI
 Home purchase loan 9 9
Home construction loan 18 19

6 9
Home improvement loan
Home equity loan 4 2
Land purchase loan 9 8

Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47
Only 4 persons know home equity loan of HDFC & ICICI it was 2 persons.
Many of peoples know home construction loan in both banks.
9 peoples know home purchase loan in both banks.
6 peoples know home improvement loans of HDFC & ICICI it was 9.

5) Are you aware all terms and conditions of home loans?

HDFC ICICI
Yes 40 34
NO 6 13
Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
Many of persons know all terms and conditions of home loan i.e. 40 in
HDFC & in ICICI it was 34.
6 persons had not known properly about all terms and conditions of HDFC
& in ICICI it was 33 persons.

6) Are you satisfied with the interest rate charges by your bank?
HDFC ICICI
Strongly agree 12 11
Agree 30 34
Disagree 4 2
Strongly disagree 0 0

Interpretation:-
 Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
12 among all consumers are strongly agreed by interest rate of the bank in
HDFC & in ICICI it was 11.

30 among all consumers are agreed by interest rate of the bank in HDFC &
in ICICI it was 34.
4 among all consumers are disagreed by interest rate of the bank in HDFC
& in ICICI it was 2.
0 among all consumers are strongly disagreed by interest rate of both
banks.

7) Your bank offers which type of services?

HDFC ICICI
Mobile Banking 24 26
Net Banking 15 13
Forex Banking 7 8

Interpretation:-
 Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
24 persons said that bank offer mobile banking services in HDFC & in ICICI
it was 26 persons.
15 persons said that bank offer net banking services in HDFC & in ICICI it
was 13 persons.
Only 7 persons said that bank offer Forex banking services in HDFC & in
ICICI it was 8 persons.

8) Do you agree that your bank loan processing is fast?

HDFC ICICI
Strongly Agree 8 4
Agree 26 21
Disagree 9 13
Strongly Disagree 3 9

Interpretation :-
 Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
8 persons strongly agree that bank home loan processing is fast in HDFC & in
ICICI it was 4 persons.
26 persons agree that bank home loan processing is fast in HDFC & in ICICI
it was 21.
9 persons disagree that bank processing is fast in HDFC & in ICICI it was 13.
3 persons strongly disagree that bank processing is fast in HDFC & in ICICI it
was 9.

9) Are you satisfied with the after home loan services provided by
your bank as compared to other banks?

HDFC ICICI
Strongly Agree 12 14
Agree 30 29
Disagree 4 4
Strongly Disagree 0 0

Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
 12 among all consumers are strongly agreed by after sale services of HDFC &
in ICICI it was 14.
30 among all consumers are agreed by after sale services in HDFC & in ICICI
it was 29.
4 among all consumers are disagreed by after sale services of the both banks.
0 among all consumers are strongly disagreed by after sale services of the
bank

10) Does the cost of home loan is appropriate, according to your

demand?

HDFC ICICI
Yes 33 29
No 13 18

Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47
 33 persons said that home loan is appropriate according to their demand in
HDFC & in ICICI it was 29 in demand.
13 persons said that home loan is not appropriate according to their demand in
HDFC & in ICICI it was 18 persons.

11) Are you satisfied with the employee behavior at the bank?

HDFC ICICI
Strongly Agree 19 16
Agree 23 25
Disagree 4 4
Strongly Disagree 0 0
 Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
19 persons very satisfied with the employee behavior of the HDFC & in ICICI
it was 16 persons.
23 persons satisfied with the employee behavior of HDFC & in ICICI it was
25 persons.
4 persons disagree with the employee behavior of HDFC & in ICICI it was 6
persons.
No one disagrees with the employee behavior of the both banks.

12) Does the bank give any discount upon loan services?

HDFC ICICI
Yes 40 35
No 6 12

Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
40 persons said that bank give discount upon loan services in HDFC & in
ICICI it was 35 persons.
 Only 6 persons said that bank does not give any discount upon loan services in
HDFC & in ICICI it was 12 persons.

13) Are you satisfied by the time taken in sanctioning the loan?

HDFC ICICI
Yes 34 30
No 12 17

Interpretation:-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
34 persons are satisfied by the time taken by HDFC & ICICI 30 persons was
satisfied.
 12 persons are not satisfied by the time taken by HDFC & ICICI 17 persons
was not-satisfied.

14) Have you faced any difficulty during taking the loan?

HDFC ICICI
Yes 39 43
No 7 4

Interpretation:-

Total Number of Respondents was 46 in HDFC & in ICICI it was 47.

 39 persons face difficulty during taking the loan by HDFC & ICICI 43
persons.
Only 7 persons does not face any difficulty during taking the loan by HDFC &
ICICI it was 4 persons.

15) Which grade you want to give of home loan schemes of the
bank?

HDFC ICICI
Excellent 24 18
Good 18 20
Average 4 8
Below average 0 1
Interpretation :-
Total Number of Respondents was 46 in HDFC & in ICICI it was 47.
24 persons give excellent grade to HDFC & 18 persons to ICICI.
18 persons gave good grade to HDFC & ICICI it was 20 good.
Only 4 persons give average grade to the HDFC & ICICI bank 8 persons give
average.
No one give below average grade to the bank HDFC & Only1 person give
below average grade to ICICI.
 CHAPTER-5
CONCLUSIONS AND SUGGESTIONS

CONCLUSIONS

The study concludes to be valuable to ICICI bank and HDFC as it is based

on the opinion of customers and bank employees (marketing staff). It is useful for
other private sector and Public sector banks also in formulating their possibilities
regarding launch of new banking product, in order to reach the level of success
achieved by these two banks. It also point out reasons for dissatisfaction among
bank customers and provide meaningful solution to their problems. The study
conducted will help the private Sector Banks and Public Sector Banks in
addressing the marketing problems and difficulties faced by these banks while
marketing their services to customers. The study also helps in solving the
problems faced by the customers and the effective implementation of marketing
strategies of private sector and Public sector banks.

SUGGESTIONS

The staff of HDFC and ICICI bank has to be courteous and polite.
The banks required hiring right kind of people, with adequate knowledge of
banking especially at banks call centers.
 Training programmes should be devised for all staff including call centre
and Staff of Direct Sales Associates or Associates of these banks. More
importance should be given to upgrade product knowledge and
communication skills in such training programmes.
There is a need for banking staff to have training in the areas of technology
and interactive skills.
The marketing personnel selected by direct sales associates of ICICI bank
and HDFC should be more qualified, in terms of education, product
knowledge, communication skills etc.
In the bank the customer has his first introduction with bank at front desk.
The person who is presenting the services to the customers is identified
with the services offered so the banker or the professional who is offering
the banking services to the customers should be good in his appearance, his
attitude which should be appealing to the customers. Proper dress code,
perfect surroundings, attractive interiors, ambience and courteous staff at
the counters are must to attract the customers. The personnel at front desk
also need to be developed to deliver service quality.
The bank should attract best talent and retain that talent by right kind of in
respect of salary, incentives, etc.
Develop service oriented internal processes.
Include employees in the banks vision.
Right kind of reward to be provided to strong service provider.

Both the banks need to adopt customer oriented service delivery.

 CHAPTER-6
BIBLIOGRAPHY
 Sharma, Reema The IUP Journal of Financial Economics, Article IKJF40612. New
Delhi. P-

Ashok. The Future Out look, A Study report by NHB, New Delhi. 2008, P-27.

Rana, P.S. Activities of NHB National Housing Bank. 2008. P-16.

Leeladhar .V.2001, Handbook on Rural Housing and Infrastructure Central Building
Research Institute, Roorkee. P-32.
Subba Rao D. Reserve Bank of India Report RBI bulletin, New Delhi, P-12.
 CHAPTER-7
ANNEXTURES
QUESTIONNAIRE
Dear Sir/Madam,

I am AKASH KALRA doing BBA from SATYUG DARSHAN TECHNICAL

CAMPUS,FARIDABAD .I am studying the market potential for home loans.For this I have designed
a questionnaire to know your views.Please fill the given as per your thinking and experiences.I will be
thankful to you for this.

Name____________ Qualification_________
Age 18-25 25-35 35-40 above
Gender_________

1) What is your occupation?

Business man Government employee House wife Student Other

2) From how many years you are associated with this bank?
Less than 1 year 1-5 More than 5 year

3) How do you come to know about the home loan schemes of this bank?
News paper Television Internet Other resources

4) Are you aware of these types of home loans?

Home purchase loan Home construction loan Home improvement loan
Home extension loan Home equity loan Land purchase loan

5) Are you aware all terms and conditions of home loans?

Yes No
6) Are you satisfied with the interest rate charges by your bank?
Strongly agree Agree
Strongly disagree Disagree

7) Your bank offers which type of services?

Mobile banking Net banking Forex banking

8) Do you agree that your bank loan processing is fast?

Strongly agree Agree
Strongly Disagree Disagree

9) Do you satisfy with the after home loan services provided by your bank are best as
compare to other bank?
Strongly agree Agree Strongly disagree Disagree

10) Does the cost of home loan is appropriate, according to your demand?
Yes No

11) Are you satisfied with the employees behavior at the bank?
Strongly agree Agree Strongly disagree Disagree

12) Does the bank give any discount upon loan services?
Yes No

13) Are you satisfy by the time taken in sanctioning the loan?
Yes No

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

Yes No
If yes then specify___________________________

15) Which grade you want to give of home loan schemes of your bank?
Excellent Good
Average Below average
16) Any suggestions that you want to give_________________________________
__________________________________________________________________