1.

INTRODUCTION
1.1 Background of the study
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
thepeople for around three decades and providing various housing loan according to
their varied needs at attractive & reasonable interest rates. Owing to their wide
networkof 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. HDFC also provides with Home improvement loan for internal
and external repairs and other structural improvements like painting, waterproofing,
plumbing and electric works, tiling and flooring, grills and aluminum windows. HDFC
finances up to85% of the cost of renovation (100% for existing customers).Current
status is that HDFC reduced home loan rates by 50 basis points for all its existing
floating rate customers.
Housing Finance Evaluation:
Housing Development Finance Corporation (HDFC) was the first housing finance
Company to setup operations in India in 1977. After the National Housing Bank Act,
1987, was passed NHB came into existence as a Subsidiary of the Reserve Bank
of India (RBI) to regulate housing finance companies and provide them with

1
refinancing to supplement their fund requirements. Public sector banks were allowed
to provide housing loans directly to retail clients only in 1988.
Advantages of Home Loan

1. Home Loan is secured Loan with lower interest rate

2. Home loans amount totally depends on the requirement
3. 20 years is the maximum loan tenure offered for home loan?
4. You can go for Home Loan Balance Transfer
5. Increases the probability of acquiring a house. Many, especially in
India will not be able to buy a house will full cash readily available.
6. This helps in capital appreciation; there is no doubt property prices
have boomed in the past 5 years. Investment in home is always a safe
and smart move. The value of land always increases and thus
appreciation for your investment can be visibly seen within few years.
7. Applicants can avail tax benefit from home loans. Under Section
80CCE of the Income Tax Act, 1961 repayment of principal up to Rs
100,000 on home loan is subject for tax deduction. Once all
prescribed conditions are met, this benefit can be availed.
Disadvantage of a home loan

1. You need to keep someone as guarantor.

2. You have to continue the loan for a long period of time.
3. If you become defaulter for more than 3 months, lenders may auction
your collateral to get the money back.

1.2 OBJECTIVES OF THE STUDY

1. To study and understand the concept of home loan scheme and the
eligibility criteria of the customers.
2. To study and understand the documents involved in the home loan scheme
and the repayment methodology adopted by HDFC BANK.
3. To study the satisfaction level of customers about home loans.

2
1.3 SCOPE OF STUDY
1. Company has undergone rapid changes in the past 5 years due to many
policy decisions relating to capital markets, banking sector & licensing
policy.
2. The study is limited to only HDFC Bank This study is mainly related to
the individuals who are interested in taking home loans from banks to
fulfill their dreams.
3. The study is mainly related to all the loans provided by HDFC bank only
1.4 NEED FOR THE STUDY
1. Retail banking has been popular segment to enter into for many banks. In
the retail banking, housing sector has been most promising segment which
is promising a Comprehensive growth rate of about 30 per cent for the
next five years.
2. With the government keen on infrastructure development and announcing
various tax Sops housing loan segment has been a tempted area for many
banks to enter into housing sector can be bifurcated into organized and
unorganized segments with the unorganized segments accounting for over
75 per cent of the housing unit constructed. During the past 4 – 5 years the
housing sector helped by the growing housing finance industry has
witnessed significant developments.

1.5 LIMITATION OF THE STUDY

1. The study was restricted in understanding the home loan as concept so the
practical implications of the study have been difficult.
2. The Take Over home loans of high interest rate for low interest rates and
their inherent risks on the bank’s lending profile has not been undertaken
in the study.
3. The mortgage home loans and its scope on the home loan lending portfolio
were not studied as this would lead into a relatively new kind of home loan
segment.

3
 2. INDUSTRY PROFILE
The history of home loan

In India, the government provisions account for a very small portion of housing
activities (i.e.) less than 5% of total housing each year. Thus, the private sector seems
to be dominant. However, the public polices often ignored the private sector and so it
supply cannot match housing demands. India is considered as the birthplace of the
number zero. Home to roughly 1.2 billion people, India is the second most populous
country after China and is expected to overtake it by 2030. About one in every sixth
person breathing on earth lives in India, and the growth rate of the population is still
high. Housing Finance plays a vital role as an engine of equitable economic growth
through the reduction of poverty and prevents slum proliferation in economy. The
demand for housing has increased rapidly day by day. Therefore, to meet with the
growing housing demand is the aim of the government. To achieve this aim it is
required to provide the finance for housing to the people. The liberalization of the
financial sector of the economy has also become possible by the housing finance.
Home Loan is the funds buyer has to borrow usually from a bank or other financial
institutions to purchase a property, generally secured, by a registered mortgage to the
bank over the property being purchased. A mortgage loan is a debt owed on a home,
the mortgage rate is the interest rate charged to the home owner for the use of the
loan. Housing finance or Home loan is a broad topic, the concept of which may vary
across continents, regions and countries, particularly in terms of the areas it covers.

Housing in India

As per CSO estimate almost 5% of GDP is contributed by the housing sector in next
few years. It is expected to rise to 6%, 16% of Indian workforce is engaged in the
construction sector, more over the construction sector has also been responsible for
the development of over 250 ancillary industries such as cement, steel, paints, bricks,
etc. The construction industry ranks 3rdamong the 14 major sectors in the terms of
direct, indirect and in dual effects in all sectors of the Indian economy. A unit increase
in expenditure in real estate sector can generate of five-fold increase in income. The
figure given below depicts the relationship between the housing system and the entire
economy.

4
Housing Finance in India

The Housing finance sector in India has no doubt, experienced unprecedented change
in its structure from its formulation stage. Indian Housing Finance has far moved from
the stage of being a solely government undertaking provided service during the
1970’s to a very competitive sector with more than 45 housing finance entities
providing housing loans worth ` 7,81,000 million to home buyers across India. The
housing finance revolution in India can be divided into five distinct phases:

Table no. 2.1

Housing Finance in India
Phase I Before 1970 Government Domination
Phase II 1970 – 1980 HUDCO and HDFC establishes
Phase III 1980 – 1990 Establishment of NHB
Phase VI 1990 – 2000 Liberalization of Interest Rate
Phase V 2000 – Present High Growth

5
 3. COMPANY PROFILE

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995. The Housing
Development Finance Corporation (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 in
1994.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 1416 branches spread over 550 cities across India. All branches are
linked on an online real–time basis. Customers in over 500 locations are also serviced
through Telephone Banking. The Bank also has a network of about over 3382
networked ATMs across these cities.
The promoter of the company HDFC was incepted in 1977 is India's premier housing
finance company and enjoys an impeccable track record in India as well as in
international markets. HDFC has developed significant expertise in retail mortgage
loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares ( ADS ) are
listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the
Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange.
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank
was formally approved by Reserve Bank of India to complete the statutory and
regulatory approval process. As per the scheme of amalgamation, shareholders of
CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.
The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and
net advances of around Rs. 89,000 crore. The balance sheet size of the combined
entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to

6
HDFC Bank in terms of increased branch network, geographic reach, and customer
base, and a bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. / Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. HDFC Bank
offers a wide range of commercial and transactional banking services and treasury
products to wholesale and retail customers. The bank has three key business
segments:

1. Wholesale Banking Services – The Bank's target market ranges from large,
blue–chip manufacturing companies in the Indian corporate to small & mid–
sized corporate and Agri–based businesses.

2. Retail Banking Services – The objective of the Retail Bank is to provide its
target market customers a full range of financial products and banking
services, giving the customer a one–stop window for all his/her banking
requirements.

3. Treasury – Within this business, the bank has three main product areas –
Foreign Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. The Treasury business is responsible for managing
the returns and market risk on this investment portfolio.
HDFC Securities (HSL) and HDB Financial Services (HDBFSL) are its subsidiaries.
Services offered by the company:
Personal Banking
 Accounts & Deposits
 Loans
 Cards
 Forex
 Investments & Insurance

NRI Banking
 Accounts & Deposits
 Remittances
 Investments & Insurance Loans Payment Services

7
Wholesale Banking
 Corporate
 Small & Medium Enterprises
 Financial Institutions & Trusts
 Government Sector
Business focus
HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank’s risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank’s business philosophy
is based on five core values: Operational Excellence, Customer Focus, Product
Leadership, People and Sustainability.
Documentation of Home loan scheme
The following documents are required along with your Home Loan application:
Table no. 3.1
Housing Finance in India
Salaried
Agriculturists Businessmen – Professionals
Customers
Application form with Application form Application form with
photograph with photograph photograph
Identity and Residence proof Identity and Identity and Residence proof
Residence proof
Last 6 months bank statements Last 6 months Last 6 months bank statements
bank statements
Processing fee cheque Processing fee Processing fee cheque
cheque
Income Documents
Copies of Title Documents of Latest Salary Slip Educational Qualifications
Agricultural Land depicting Land Certificate and Proof of
holding Business
Copies of Title Documents of Form 16 Business Profile and Previous 3
Agricultural Land depicting years Income Tax returns (self
crops being cultivated and business)
Statement of previous 2 years of Previous 3 years Profit/Loss and
loans availed Balance Sheet

8
Features of Home Loan
I. Variety of Loan Options
1. Home Loan: Home loans for individuals to purchase (fresh/resale) or
construct houses. Application can be made individually or jointly.
2. Home Improvement Loan (HIL): The interiors of any home reflect the
personal preferences and tastes of its owners making it imperative to
constantly upgrade to keep up with changing times. HIL facilitates internal
and external repairs and other structural improvements like Painting,
Waterproofing and Roofing, Plumbing and Electrical Works, Tiling and
Flooring, Grills, Aluminum Windows, Compound Walls and much more.
3. Home Extension Loan (HEL): HEL for adding more space to your existing
home for meeting the requirements of your growing family. Be it an extra
bedroom for your children, a reading room for yourself or a cosy coffee
corner. It is easy to extend your home anyway you like.
Conditions apply. All Home Loans from HDFC Ltd. Credit at sole discretion of
HDFC Ltd
II. Automated Repayment of EMIs
 You can give us standing instructions to repay your Home Loan EMIs directly
from HDFC Bank Savings Account, thus, saving you the trouble of procuring,
signing and tracking post-dated cheque.
III. Different Offerings for Different People
 HDFC offers specially designed Home Loans for:
 Agriculturists
 Planters
 Horticulturists
 Dairy Farmers
IV. Special Home Loan Scheme for Agriculturists
 Loans for farmers to buy or construct houses/apartments in several
of cities/towns of their choice
 Home loans in residential areas of villages
 Loan eligibility on the basis of agricultural land owned and the
kind of crops being cultivated by farmers

9
  No mortgage of agricultural land required for the purpose of home
loans
 No mandatory requirement of Income Tax Returns from farmers
applying for home loans
V. Rural Housing Finance for Salaried and Self Employed
 Home Loans for Government & Private Sector Employees for rural
properties in residential areas
 Home Loans for Businessmen, Traders etc. who are filing Income
Tax Returns for the last three years for properties in rural
residential areas
 Home Loans for NRIs also in rural residential areas
VI. The HDFC Advantage
 Pioneer of Housing Finance in India with over 35 years of lending
experience
 For over 3 decades, shared the hopes and joys of 4.4 million
customers who have been nurturing the dream of home ownership
 Most experienced and empowered personnel to ensure smooth &
easy processing
 Transparent dealing. All charges mentioned upfront while giving
you the loan quote. No hidden charges
 Counselling and advisory services for acquiring a property
 Loan approval even before a property is selected
 Loan from any HDFC office for purchase of home anywhere in
India
 Flexible loan repayment options
 Free & safe document storage

10
 4. REVIEW OF LITERATURE
A Research Article entitled “Housing Credit Situation in Eighties” by Lall Vinay
(1984)
He has focused attention upon ‘formal factor’ (Permanent Construction) which served
mainly to the HIG and MIG, the loan meets only 47% of the price of the house,
forcing the borrowers to make very large down payments. Also the price of a typical
house was above 3 times the annual families’ income of the borrowers. In spite of, the
entire system of housing allocation and credit the supply of affordable funds was
much smaller than demand.
The Research Study entitled “Housing in the New Millennium: A Home Without
Equity is Just a Rental with Debt” by Joshua Rosner (2001) He studied the
prospects of the U.S. housing / mortgage sector over the next several years. Based on
his analysis, he believes that, there are elements in place for the housing sector to
continue to experience growth well above GDP. However, he believes that there are
risks that can materially distort the growth prospects of the sector. Specifically, it
appears that a large portion of the housing sector’s growth in the 1990’s came from
the easing of the credit underwriting process. Such easing includes:
 The drastic reduction of minimum down payment levels from 20% to 0%.
 A focused effort to target the “low income” borrower.
A research article entitled “Home Ownership Risk Beyond a Subprime Crisis:
The Role of Delinquency Management” by Jaco Melissa B. (2002) She concluded
that public investment in and promotion of homeownership and the home mortgage
market often relies on three justifications to supplement shelter goals: to build
household wealth and economic self-sufficiency, to generate positive social
psychological states, and to develop stable neighborhoods and communities. Home
ownership and mortgage obligations do not inherently further these objectives,
however and sometimes undermine them. The most visible triggers of the recent surge
in subprime delinquency have produced calls for emergency foreclosure avoidance
interventions (as well as front-end regulatory fixes).
A research article entitled “Housing Problem and Public Action: Continued
Incompatibility Experience from a South Indian State” by M. Mahadeva (2004).
In this article, the author has analyzed the nature and distribution of the housing
problem in Karnataka and examined how the state has addressed this issue. In

11
particular, it considers the strategies adopted during the 90s and identifies a number of
failures including the task force on housing. Some of the major weaknesses,
pertaining to 51 incidences by type and by rural-urban areas, on approaches, on
financial requirements and issue of development and redevelopment are examined to
propose alternative policy strategies to effectively address the housing problem in the
state.
A study entitled “Performance of Housing Finance Companies” by Brar Jasmin
deep et.al. (2005)the objectives of this study were: to study the operational
performance, and the financial performance of the selected institutions. The study
covers three institutions viz. HDFC, LIC & PNB. The study is based on secondary
data that have been collected from the annual reports and web sites of the institutions
selected under study. It covers the period from 1990-91 to 2002-03. Return on net
worth: - The ratio had considerable variation in the case of PNBHF from 49.23% to
40.26%. The ratio also showed a comparatively little variation and was at a
reasonable level for both HDFC and LICHF during the period of the study.
A Paper entitled “Housing Finance – A Global Perspective” by Rao K.N. (2006)
HDFC, ICICI and SBI are the major players in disbursement of home loans. These
banks sanction up to 85% of the cost of the property as home loan for a maximum
period of 20 to 30 years. In US, GSE that are instrumental in the high percentage of
home ownership. These two enterprises enjoy implicit government guarantee and
consequently raise long term funds globally at low interest.
A Research Study entitled “Housing Advances and Commercial Banks: A
Review” Authored by Vimala P. (2007)the objectives of the study were: 1) To
review the housing advances of commercial banks in Kerala. 2) To compare the
performance of different bank groups in respect of housing advances. The study
covered a period of seven years from March 2000 to March 2006 and the secondary
data are used in the study. For the purpose of the study, commercial banks are
grouped into four categories.
The Study entitled “Housing Finance in India – Problems and Prospects”
Authored by Chaubey M. (2009) 42%, 32%, 22% and 4%, opted for loans because
of low interest rate, easy installment scheme, simple procedure and other reasons
respectively.  26%, 34%, 38%, and 2% respondents have borrowed loans for
purchase of flats, purchase of house, construction of house and other reasons

12
respectively.  100% respondents made the repayment in equated monthly
installments.  43% respondents knew about the interest rate.
A Research Paper entitled “Prospects and Problems of Housing Microfinance in
India: Evidence from “Bhavanashree” Project in Kerala State” Authored by
Manoj P.K. (2010) He has examined the exact nature of housing microfinance in
India, it’s problems and prospects and particularly deterrents to its growth, with a
view to suggesting suitable remedial strategies for its faster development; based on an
empirical study of “Bhavanshree”. The Objectives of this study were:  To make an
overall study of the housing microfinance initiatives the world over their performance
track record, trends and patterns.  To critically study the extent and nature of housing
problem in India, and to examine the need for alternative financing models.

13
 5. RESEARCH METHODOLOGY
RESEARCH METHODOLOGY–
Research methodology is a way to systematically show the research problem. It may
be understood as a science of studying how research is done scientifically. It
isnecessary for the researcher to know not only the research methods but also themeth
odology.This Section includes the methodology which includes. The research design,
objectives of study, scope of study along with research methodology and limitations
of study etc.
 To know the Customers perceptions about home loans of HDFC housing
development finance corporation LTD.
 To study the satisfaction level of customers about home loans.
 To study the problems faced by customers in obtaining the home loans.
 To make comparative study of disbursement of home loans by commercial
banks, the study shall be conducted in the manner enumerated below-

5.1 RESEARCH DESIGN

This project is based on exploratory study as well descriptive study. It was an
exploratory study when the customer satisfaction level was studied to suggest new
methods to improve the services of HDFC LTD in providing home loans and it was
descriptive study when detailed study was made for comparison of disbursement of
home loans by commercial banks.

5.2 SOURCES OF DATA

i. Primary sources

These include the survey or questionnaire method, as well as the personal interview
methods of data collection.
ii. Secondary sources

These include books, the internet, company brochures, banks website, competitors,
Wikipedia, newspaper, articles etc.

14
5.3 METHODS OF DATA COLLECTION
Mainly secondary data utilized for this project study. The annual reports of the HDFC
Bank ltd and master circulars of RBI were used for getting information. Secondary
data used in bank websites, books etc.

5.4 METHODS OF DATA ANALYSIS

15
 6. DATA ANALYSIS & INTERPRETATION

1. Home Loan Rate

Table no. 6.1
Home Loan Rate
HDFC Home Loan Rate for Female
Loan Amount
Floating Interest Rate Borrower
Up to Rs. 30 Lakh 8.45% 8.40%
Rs. 30 Lakh - 75 Lakh 8.60% 8.55%
Rs. 75 Lakh - 2 Cr 8.70% 8.65%
Above Rs. 2 Cr 8.70% 8.65%

Graph No. 6.1

Home Loan Rate

Home Loan Rate

8.75%
8.70%
8.65%
8.60%
8.55%
8.50%
8.45%
8.40%
8.35%
8.30%
8.25%
Upto Rs. 30 Rs. 30 Lakh - Rs. 75 Lakh - Above Rs. 2
Lakh 75 Lakh 2 Cr Cr
HDFC Home Loan Floating
8.45% 8.60% 8.70% 8.70%
Interest Rate
Rate for Female Borrower 8.40% 8.55% 8.65% 8.65%

Intrepretation

Graph no. 6.1 shows Home loan rate for HDFC bank in loan amount 30
lakh on floating interest rate is 8.45% and rate for female borrower is
8.40%, then Rs. 30 lakh to 75 lakh on FIR is 8.60 % and female
borrower is 8.55%, Rs. 75 lakh to 2 cr FIR is 8.70% & female borrower is
8.65% and above Rs 2 cr on same rate for above 75 lakh.

16
 2. Home Loan Interest Rate Comparison of Other Banks
Table no. 6.2
Comparison Home loan of other banks
Bank Home Loan Rate Processing Fee
SBI Home Loan 8.50% 0.50% Min Rs. 10,000 - Max
Rs. 10,000
HDFC Home Loan 8.40% 0.50% Min Rs. 3,000 - Max Rs.
10,000
ICICI Bank Home Loan 8.45% 0.50% Min Rs. 5,000 - Max Rs.
5,000
Axis Bank 8.35% 0.50% Min Rs. 2,500 - Max Rs.
25,000

Graph No. 6.2

Comparison Home loan of other banks

Comparison home loan of other banks

8.55%
8.50%
8.45%
8.40%
8.35%
8.30%
8.25%
SBI Home HDFC ICICI Bank
Axis Bank
Loan Home Loan Home Loan
Home Loan Rate 8.50% 8.40% 8.45% 8.35%

Intrepretation
Graph no. 6.2 shows comparison home loan for other banks in SBI home loan rate is
8.50 % on 0.50% fee on min rs 10000 to max rs. 10000. HDFC home loan rate is
8.40% on 0.50% charge on min rs 3000 and max rs 10000, ICICI bank home loan rate
is 8.45% on same rate as well as min rs 5000 & max rs 5000, last of the Axis bank
Home loan rate is 8.35% on 0.50 on min rs 2500 to max rs 25000.

17
 3. Housing Loan EMI
Table no.6.3
Housing Loan EMI
Loan Amount 20 year loan 25 year loan 30 year loan
Rs. 20 Lakh Rs. 17,230 Rs. 15,970 Rs. 15,237
Rs. 30 Lakh Rs. 25,845 Rs. 23,955 Rs. 22,855
Rs. 50 Lakh Rs. 43,075 Rs. 39,925 Rs. 38,092

Graph No. 6.3

Housing Loan EMI

Housing loan EMI

50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
20 year loan 25 year loan 30 year loan
Rs. 20 Lakh 17,230 15,970 15,237
Rs. 30 Lakh 25,845 23,955 22,855
Rs. 50 Lakh 43,075 39,925 38,092

Interpretation
Graph No. 6.3 shows on Housing loan EMI in Loan amount Rs. 20 Lakh for 20 year
loan rs. 17230, 25 Year loan rs. 15970, 30 year loan rs. 15237. Loan amount Rs. 30
Lakh for 20 year loan rs. 25845, 25 Year loan rs. 23955, 30 year loan rs. 22855. Loan
amount Rs. 50 Lakh for 20 year loan rs. 43075, 25 Year loan rs. 39925, 30 year loan
rs. 38092.

18
 4. HDFC Home Loan Interest Rates
Table no. 6.4
HDFC Home loan Interest Rates
Home Loan HDFC Interest Rates Min - Max
HDFC Home Loan Floating 8.70% 8.40% - 8.70%
Plot Loan Floating 8.95% 8.65% - 8.95%
Rural Housing Finance Floating 9.25% 8.65% - 9.25%
HDFC Reach Home Loan 11.55% 10.55% - 11.55%
HDFC Home Improvement Loan 8.70% 8.40% - 8.70%
HDFC Home Extension Loan 8.70% 8.40% - 8.70%
HDFC Short Term Bridging Loan 12.30% 12.30%
HDFC Home Loan Top Up 8.60% 8.60%

Graph No. 6.4

HDFC Home loan Interest Rates

Interest Rates
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
HDFC HDFC
HDFC Rural HDFC HDFC HDFC
Plot Home Short
Home Housing Reach Home Home
Loan Improve Term
Loan Finance Home Extensi Loan
Floating ment Bridgin
Floating Floating Loan on Loan Top Up
Loan g Loan
Interest Rates 8.70% 8.95% 9.25% 11.55% 8.70% 8.70% 12.30% 8.60%

Interpretation
Graph No. 6.4 shows HDFC home loan floating rate is min 8.40% to 8.70% pay on
home loan interest rates, Plot loan floating rate is min 8.65% to 8.95%, Rural Housing
Finance floating rate is min 8.65% to 9.25%, Rural Housing Finance Floating rate is
min 8.65% to 9.25%, HDFC Reach Home Loan rate is min 10.55% - 11.55%, home
improve loan rate is min 8.40% - 8.70%, Home Extension Loan rate is min 8.40% -
8.70%,

19
 5. HDFC Fixed Rate Home Loans
Table no. 6.5
HDFC Fixed Rate
Home Loan HDFC Interest Rate Min - Max
HDFC Home Loan TruFixed 8.70% 8.40% - 8.70%
Plot Loan TruFixed 8.95% 8.65% - 8.95%
Rural Housing Finance TruFixed 9.25% 8.65% - 9.25%

Graph No. 6.5

HDFC Fixed Rate

HDFC Fix Rate

9.30%
9.20%
9.10%
9.00%
8.90%
8.80%
8.70%
8.60%
8.50%
8.40%
HDFC Home Loan Plot Loan Rural Housing
TruFixed TruFixed Finance TruFixed
Interest Rate 8.70% 8.95% 9.25%

Interpretation
Graph No. 6.5 shows HDFC fix rate in HDFC home loan trufixed interest rate is
8.70% on home loan, Plot loan on fixed interest rate is 8.95% and Rural Housing
Finance loan is 9.25% paid on home loan to HDFC bank.

20
 6. Margin pay on loan
Table no. 6.6
Margin Pay on loan
Sr. No. Loan Amount Margin
1 Up to Rs. 30 Lakh 10%
2 Above Rs. 30 Lakh to up to Rs. 75 Lakh 20%
3 Above Rs. 75 Lakh 25%

Graph No. 6.6

Margin pay of loan

Margin pay of loan

30%

25%

20%

15%

10%

5%

0%
Above Rs. 30 Lacs to
Up to Rs. 30 Lacs Above Rs. 75 Lacs
upto Rs. 75 Lacs
Series1 10% 20% 25%

Interpretation
Graph No. 6.6 shows Margin Pay of loan in loan amount Up to rs. 30 Lakh on 10%
Margin, above rs. 30 Lakh to up to 75 Lakh on 20 % margin, and above rs. 75 Lakh
on 25% margin pay on home loan.

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7. FINDINGS

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