A SUMMER INTERNSHIP PROJECT

ON
MARKET STUDY OF HDFC HOUSING FINANCE
FOR CORPORATE EMPLOYEES
IN BHUBANESWAR CITY

Submitted By-
BAJRANGI PANJIYAR
Regd. No – 2106298019
(Finance) 2023-P

A REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS OF MBA.

(BPUT)
Under the guidance of

Corporate Guide; Internal Guide;

DR.SATYABRAT DAS PROF.SIPRA KARMAKAR
Assistant General Manager, Assistant Professor
HDFC Limited, Bhubaneswar GIFT, Bhubaneswar

Gandhi Institute for Technology (GIFT)

Bhubaneswar

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 DECLARATIOIN

I do hereby declare that the project entitled “Market study of HDFC housing finance for
corporate employees in Bhubaneswar city” is a record of work conducted by towards the
completion of the summer internship program for the MBA program for Gandhi Institute for
Technology Bhubaneswar.

The project has been done under the guidance of Dr.Satyabrat Das (Company guide).
Assistant General Manager, HDFC Ltd. Bhubaneswar and prof. Sipra Karmakar (Faculty guide),
GIFT College, Bhubaneswar.
The project has not been submitted elsewhere for any degree or diploma

Place: Bajrangi Panjiyar

Date: Gandhi institute for Technology
(GIFT)

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 TABLE OF CONTENTS

Acknowledgement 6
Abstract

CHAPTER-1
Introduction 8
1.1. purpose, Scope, and Limitations 9
1.2. Sources and Methods 10

CHAPTER-2
Overview of the Housing Sector in India 11
2.1 Housing pattern in India 12
2.2 Evolution of the Housing Finance Sector 12
2.3 Snapshot of the Housing sector in India 13
2.4 Housing Policy and Market Condition 14
2.5 Present scenario 15
2.6 Market profile 16
2.7 Market trends 16
2.8 Demographics and housing needs 16
2.9 Changing profile of consumers 17
2.10 Housing finance and five year plan 17

CHAPTER-3
Company Profile 20
3.1 Company’s Profile 21
3.2 Housing Finance Products 23
3.3 Group and Subsidiary 24
3.4 Guide to Housing Finance for Urban Population 25
3.5 Documents Required for Housing Finance 31
3.6 Loan Processing System 32
3.7 General Queries Related to Home Loan 33

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 3.8 List of Housing Finance Business 34
3.9 Banks in Housing Finance Business 35

CHAPTER-4
Research Methodology 37

4.1 The City of Bhubaneswar 38

4.2 Bhubaneswar City Map 39
4.3 SWOT Analysis 40

CHAPTER-5
Conclusion 57

CHAPTER-6
Suggestions, Recommendations and Findings 58

CHAPTER-7
Reference 59

CHAPTER-8
Questionnaire 60

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 ACKNOWLEDGEMENT

First of all, I would like to express my gratitude to Dr.Satyabrat Das,

Assistant General Manager Housing Development Finance
Corporation Limited (HDFC), Bhubaneswar, for giving me the
opportunity for doing summer internship program in his organization.
Again, I am extremely thankful to him for his encouraging words,
moral support, supervision and the guidance that he has given to me
in the completion of this project.
I would like to thank Prof. Sipra Karmakar, GIFT College, Bhubaneswar
for the moral support and the guidance that she has given to me in
caring out this project.
I would also like to thank all teaching as well as non-teaching staff of
GIFT College, Bhubaneswar and all my friends for their help in carrying
out this project.

Mr Bajrangi Panjiyar
Reg no. 2106298019
Student of MBA (2023)

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 ABSTRACT

After independence the government of India embarked on a journey to take the

state of the Indian economy to a new level. Hence it was felt that focus should
be given to certain sectors which needed the attention thee most and housing
finance sector is one among these. Respecting every citizen’s right to adequate
shelter, the government of India has given priority status to housing in India.
Demand and supply are the two determinants of the housing finance industry
had laid down. The housing and construction industry is the only industry which
makes use of all other industries; over and above it improves the country’s
economic condition.
With the emerging market trends the market profile changes and the age profile
of home loan customers drastically reduces from 35-40 years to 28-35 years and
now the traditional joint family system gives way to the nuclear families. The
major factor which contributed to the growth constituted lowering of interest
rates, increase in disposable income and also a major tax break on interest
payments. The housing finance industry is growing at a rapid pace of 30-35%
over the years, although it has not been given importance during the five year
plans. The changing scenario is reflected in the government’s reducing financial
allocation for housing as a percentage of the total investment in the economy –
34% in the first five year plan to a meagre 2% in the eleventh five year plan.
Now the Housing Finance Companies (HFCs) shifted their focus in those areas
where housing finance market is booming, and Bhubaneswar city is one among
these. The HFCs see a vast opportunity in investing in the developing cities like
Bhubaneswar.
The project entitled “Market study of housing finance products for corporate
employees in Bhubaneswar city”. The projects main focus area is to find out the
housing finance requirement of corporate employees in Bhubaneswar city as
well as creating awareness about the home loan product and guide them how
the loan processing system goes and general queries related to housing finance.
The project has been completed with the help of corporate survey followed by
analysis.

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CHAPTER 1
INTRODUCTION

1.1 Purpose, Scope, and Limitations

1.2 Sources and Methods

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 INTRODUCTION

Every human being survive in this world has three basic needs food, cloth, & house, food &
cloth can be somehow easily manageable but house can’t be easily manageable. Housing
requires a huge initial investment. Everybody survive in this world has a dream of own house,
the dream of many people become reality with the help of housing finance companies. This
project “MARKET STUDY OF HDFCHOUSING FINANCE FOR CORPORATE EMPLOYEES IN
BHUBANESWAR CITY” could help in capture the corporate people for housing finance.

1.1 Objectives of the study

 To find out the housing requirement of corporate employees in Bhubaneswar city.

 To do competitive analysis among the major players in the housing finance sector.

 To find out the perception of the people about housing Finance Corporation ltd. as
well as other housing finance companies.
 To find the relevant data pertinent to prospective customers which will help the
organization to increase its business volume in the near future.

Scope:
The project will help the organization in framing the promotional strategies for the near
future.

This project will help in creating awareness among the people about the features of the
housing loan as well as housing loan product.

This project will help the other scholars for doing further research in this field in near future.

LIMITATIONS:
The project entitled “Market study of housing finance product for corporate employees in
Bhubaneswar city” has special reference to Bhubaneswar city has various limitations, few of
which are mentioned below:

The stipulated time in carrying out the survey work being small.

Constraints on collecting the primary data because of scattered corporate office.

Distance of corporate offices.

Unwillingness of some respondents in supplying required information.

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1.2 Methodology:
The study has been administered in different corporate organizations. The study has been
conducted with the help of structured questionnaire, interviews and primary data is collected
directly from the internet.

Sources of Data Collection:

Data was collected both from primary as well as secondary sources. The primary sources
included a combination of the questionnaire and personal interview. E-mails and telephonic
calls also used for the collection of the primary data. The respondents were the corporate
people in the Bhubaneswar city.

Data Analysis:
Once the data was collected it was compiled and collated both qualitatively and quantitatively
as per the respondent’s response. They were grouped into various categories, expressed with
the help of graphs and charts.

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CHAPTER 2

OVERVIEW OF THE HOUSING

SECTOR IN INDIA

2.1 Housing Pattern in India

2.2 Evolution of the Housing Finance Sector
2.3 Snapshot of the Housing Sector in India
2.4 Housing Policy and Market Conditions
2.5 Present Scenario
2.6 Market Profile
2.7 Market Trends
2.8 Demographics and Housing Needs
2.9 Changing Profile of Consumers
2.10 Housing Finance and Five Year Plans

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2.1 HOUSING PATTERN IN INDIA
It is known fact that year after year more people are added to the category of homeless as
the population is on the increasing trends. Housing as such, in this country depends on the
following factors.

Demand factors:
Growth in population, formation of household’s development of new townships and increase
in per capita income.

Supply factor:
Availability of the institutional credit cost of construction, availability of the land and building
materials and fiscal and legal provisions affecting building construction.

Through both type of factors play their role equally, it is to be understood that everyone
wants to have a constructed house either through own money or borrowed funds. But the
growing population make it impossible to construct house and safety this need for all the
people in desired proportions. The National Simple Survey 44 th Round shows the progress in
housing in India over the years are presented below:
1. On an average, about 90% of the total household have occupied residential houses
throughout the past.
2. Within this overall pattern the percentage of occupied residential house is more in
rural areas as compared to urban areas.
3. The number of households added during decades had shown fluctuations in rural
areas but there was a steady increase in urban centres

The addition to the number of households was more during the decade of 1971-81.

2.2 EVOLUTION OF THE HOUSING FINANCE SECTOR

The first 25 years of post- independence, India has concentrated on agricultural
development only after that the industrial revolution and the continuous shifting of rural
population to the urban areas, the need for the development of housing sector has been
emphasized. In the 1970s, a network of housing boards at state level was incorporated with
the housing and technical support to these boards.

To regularize the housing finance sector in India, the government has set up HUDCO. It was
soon followed by setting up of Housing Development Finance Corporation (HDFC) in 1978 in
the private housing finance sector. The major objective behind setting up of HDFC and
HUDCO has been to enhance the residential housing stock by providing an avenue for

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 Housing finance. Another inherent objective was to increase the follow of resources to this
sector by integrating the domestic housing sector with the capital markets.

The latest developments in the housing sector have made housing finance one of the growth
drivers for the Indian economy in the last decade. What earlier remained as an isolated
segment has now transformed itself into a core sector. Till 1988, HDFC was the only formal
housing finance company in India and it is after 1988 that banks and insurance companies
forayed into this sector. With the entry of insurance giants like Life Insurance Corporation of
India (LIC Housing Finance in 1989) and General Insurance Corporation (GIC Housing Finance
in 1990), the sector witnessed a three-fold increase in activity. Almost at a similar point of
time, public sector banks also forayed into this sector (Canara Bank’s Canfin Home, State Bank
of India’s SBI home Finance). Along with the private players who eyed this sector as a potential
booster to their fortunes. “The progress in India Housing Finance sector may be termed only
as minimal and the potential still remains unexploited. The scope is unlimited and hence one
sees several housing finance companies across the country vying to capitalize on this.”

2.3 SNAPSHOT OF THE HOUSING SECTOR IN INDIA

According to the latest census, the country continues to face an acute shortage of housing
estimated at 19.4 million units in 2001. And the reasons that are held responsible for this is
the lack of land reforms, regressive policies, inappropriate planning and regulations,
insufficient public sector investments, limited private participation and so on.

Nearly 25 lakh houses are built every year in India. However, the nation's requirement is
around 65 lakh houses per annum. The housing sector in India is facing an estimated shortage
of 4.1 crore houses and according to the Ninth Plan, the demand-supply gap in urban housing
is 3.3 crore houses. In case, all these urban housing dwellings were to be built, it would require
an investment of Rs. 150,370 crore.

Traditionally, the housing finance business has been yielding a margin of around 2%. The skill
of the players is in converting their advances that have maturity period of 15-30 years with
the deposits that mature within three years. Though the National Housing Bank (NHB)
refinances housing loan up to Rs. 2 lakh disbursed to the lower income group, this is just a
negligible proportion of advances to the major players. The primary sources of funds are fixed
deposits, debentures, private placements of bonds and borrowings from banks and financial
institutions. Thus, efficient financial management has a key role to play in this industry

Lending rates are predominantly market-driven and in view of the same, the housing finances
industry has been in a slump in recent times with there being low demand from investors
alike. Furthermore, the entry of banks into the housing finance sector has also not augured
well for the industry. Most housing finances companies cater mainly to the higher income
group having reasonably assured creditworthiness. In a scenario marked with the absence of
speedy foreclosure regulations, most companies prefer to stay away from rural and Low

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 Income Group (LIG) However, it must be noted that demand for housing in the Middle-
Income Group and High Income Group segments has also recorded a steady rise lately.
The impact of the housing sector on any economy is significant, as it caters to one of life’s
basic needs With India poised to become the most populous country in the world, the
influence of this sector on the economy and its growth potential could be tremendous It is
estimated that every rupee invested in housing adds 78 paisa to the GDP. Though the
sector’s direct contribution to India’s GDP is only a mere 1-2% as compared to the entire
construction sector’s contribution of 6%, it is estimated that the multiplier effect it has on
the core sectors like cement, steel, housing finance, etc. and employment generation raises
the entire contribution to about 3-4% for the housing sector and to 10% for the construction
sector. In fact, the housing sector ranks fourth in terms of the multiplier effect on the Indian
economy Approximately 269 industries stand to benefit from the development of the
housing sector.
The housing finance sector has been growing 25-30% annually over the last few years. The
major factors which contributed to growth constituted lowering of interest rates, repeal of
urban land (ceiling and regulation), increase in affordability of salaried classes and also a
major tax break on interest payment. With many players entering into the market in the
recent years, the competition in the housing finance sector has increased tremendously.
Competition between banks and housing finance is so severe that they are providing many
additional facilities to the customers and tailoring the loans exactly according to individual
needs. The huge demand for housing has propelled housing finance firms engage in the price
wars and the government initiatives are also making this sector one of the economic drivers.
The robust annual growth of the industry is propelling the housing finance companies to be
bullish over the future as the prospects seem to be really bright.
Housing, with its ability to give high yields on its investments because of its backward and
forward linkages is rightly considered as an ‘Engine of Economic Growth’. Realizing this
potential the government on its part has taken several measures at reforming this sector in
the country.
The setting-up of HUDCO, the National Cooperative Housing Federation and the National
Housing Bank (NHB) were measures taken by the government to strengthen institutional
financing in the housing sector. The NHB, a subsidiary of the RBI, being the regulatory
authority provides the guidelines for private housing finance institutions. Though institutional
financing for housing has increased in recent years, only a mere 25% of the housing finance
requirements are met by the formal sector.

2.4 HOUSING POLICY AND MARKET CONDITIONS

The housing sector has always been given priority status in India. During the early post-
Independence years, the housing policy tended to be socialistic in nature with the
Government taking up the role of a provider by being responsible for house construction.
The Government’s support was primarily centralized and directed through the State Housing

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Boards and Development Authorities Private sector investments were minimal as the sector
was perceived to be a non-profitable. The only notable private player was the Housing
Development Finance Corporation (HDFC) that was set up in 1977 Commercial banks, the
largest mobilizers of savings in the country, too were reluctant to lend funds for housing.
By the 1980s, the Government realized that with its limited resources, it was difficult to
match the housing requirements of the nation. Thus, it slowly began shifting focus from
being a provider to a “facilitator” – promoting the development of housing activities by
encouraging participation from the private sector. While the Seventh Five-Year Plan (1985-
90) itself had laid the foundation for such a policy shift, the implementation took off only in
1991 when the public-private partnership mechanisms of housing provision were initiated.
The play of market forces came into full swing with the industrial slowdown of the 1990s.
Commercial banks, faced with sluggish credit off-take and high liquidity, were forced to look
for alternative investment opportunities in order to maintain their profitability. The
prevalent low interest regime coupled with stable property prices and fiscal incentives made
the housing sector an attractive choice. Soon, many Housing Finance Companies (HFCs) also
joined the fray, leading to a highly competitive market.

The changing scenario is reflected in the Government’s reducing financial allocation for
housing as a percentage of the total investment in the economy over the years from a high
allocation of 34% in the First Five-Year Plan(1951-56) it has come down to a mere 2.4% in
the Tenth Five-Year Plan (2002-2007) and 2% in the Eleventh Five-Year Plan.

2.5 PRESENT SCENARIO

In the last few years the home loan market has grown at the rate of over 30%. This growth
can be attributed to the factors such as increase in middle class population, increase in
disposable income levels of people, increase in affordability of housing property purchase,
stable property prices, changing demographic trends, tax benefits and other fiscal incentives
announced in consecutive Union Budgets. The most important factor, though, is the low
interest rate regime. The spurt can also be attributed to the decrease in the average house
cost to annual income ratio from 11-14 in the previous decade to around 4-5 now.
Introduction of Equated Monthly Instalment (EMI) that spreads repayment over long periods
ranging from 15 to 20 years on housing loans have gone a long way in increasing the
affordability of housing investments among common people too. With EMIs becoming equal
to or cheaper than rentals a trend of investing in residential property has set in. Tax savings
were an added advantage.

The Indian housing industry continues to be a highly disorganized and fragmented. Only
about 30% of the demand for housing units is met by the organized sector comprising large
builders and government or government affiliated entities. The remaining 70% of demand is
catered to by unorganized small builders and contractors.

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2.6 MARKET PROFILE
The Indian housing finance sector is crowded with players of all sizes and natures:
government organisations, insurance companies, banks, housing finance companies and co-
operative organisations like HUDCO and NHB Majors players in the industry are HDFC, LIC
Housing Finance, Dewan Housing, Canfin Homes, SBI Home Finance and Gujarat Rural
Housing. The youngest entrant into the Industry, which is penetrating rapidly, is ICICI
Interestingly both Can Fin Homes Limited and its parent Canara Bank are into housing
finance. It is the same with a quite few banks, for example, SBI and SBI Home Finance
Limited, Bank of Baroda and BOB Finance, Vysa Bank and Vysabank Housing. Though HDFC
and ICICI also have their banking arms, they compete with each other in personal loans, but
not housing loans.

The industry comprises of nearly 383 housing finance companies although disbursement
from only the leading 26 institutions are eligible for re-finance from National Housing Bank,
which is the regulatory body for these companies The Housing Finance Companies (HFCs)
constitute nearly 95% of the total disbursement by the industry. However, owing to the
slump in the real estate market over the last few years, the industry posted a fairly low
disbursement growth.

2.7 MARKET TRENDS

The housing sector is witnessing a clash between major players HDFC had ruled this sector
with a lion's stranglehold. It was smoothing for HDFC all these years and it seemed that its
monopoly was there to stay forever. However, out of the blue emerged ICICI Home Loans,
when this financial institution decided to clash arms with HDFC on its home front. Within a
year of its launch, ICICI Home Loans giving the industry leader, HDFC, tough competition.

Undercutting in the interest rate is all in the game and so is every other trick in the book.
HDFC is gathering its wits to beat its competitor at its own game. It launched an aggressive
hoarding campaign designed in the style of follow the leader. HDFC has launched its website
propertymartindia.com as a joint venture with Mahindras. Following suit, ICICI too, launched
its home portal indiahomeseek.com.

ICICI has lowered its prime lending rates on short and medium term loans. HDFC also
reduced its interest rates on housing loans. It went an extra mile to woo the borrowers of
loans up to Rs. 1 crore by allowing them the facility to either opt for a fixed interest rate or
a floating interest rate.

2.8 DEMOGRAPHICS AND HOUSING NEEDS

India has a population of over 1billion, making it the second most populous country in the
world, after China. According to the 2001 Census of India, the productive population (age 25
-44) of 278 million is poised to grow to 369 million by the year 2013. The census showed an

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Increase in the total number of households from 147 million in 1991 to 191 million in 2001,
while the average household size fell from 5.71 in 1991 to 5 34 in 2001. The trend has been
predicted to continue as traditional joint family system to the nuclear households and
migration of people to urban areas in search of work continues. The same census also
indicated an acute shortage of dwelling units in the country. Despite an increase in Usable
Housing Stock from 70 million units in 2001, the estimated shortfall was a massive 19 million
units. The Tenth Five-Year Plan (2002-2007) also estimated requirement of about 4.5 million
houses each year of the Plan period, over the existing shortfall. The housing shortfall
appeared worse in rural areas as compared to urban areas. The above statics highlights the
need to address the issue of shortage in dwelling units before the situation explodes.

2.9 CHANGING PROFILE OF CONSUMERS

The average age of the present's consumers of housing loans has come down and is presently
in the range of 28-35 years, as against 35-45 during previous decades. The attitude of
investors also seems to have undergone considerable changes. The earlier risk averse
consumers seem to have given way to aggressive investors, willing to take risks. Perhaps this
has more to do with age than attitude. This explanation can be arrived at from the increase
in the number of home loan in the age group of 35 and above seeking risk cover on the
outstanding loan amounts.

2.10 HOUSING FINANCE & FIVE YEAR PLANS

Even though housing sector got a relatively low priority in the allocation of public outlay in
the five year plans, the sector is not altogether neglected. In fact over the years, housing has
been recognized as an important element in the poverty alleviation programmes. This
section the treatment given to the housing in different Five Year Plans.

The First Five Year Plan (1950-56) aimed at enhancing the housing stock of minimum
standards over next few years. It suggested reduction in the cost of construction of houses
especially with regard to material and labour by encouraging economical, architectural and
structural designs. The First Plan gave due consideration to the role of private sector to help
solving the problem of housing shortage. Two schemes viz., Subsidised Industrial Housing
Scheme (1952) and Low Income Group Housing Scheme (1954) were introduced during this
period.

The Second Five Year Plan (1956-61) continued its emphasis on the Subsidized Industrial
Housing and Low Income Group Housing Schemes. Seven specific schemes were introduced
during this period. They are as follows:

Plantation Labour Housing Scheme (1956)

Slum Clearance and Improvement Scheme (1956)

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Village Housing Project Scheme (1957)
Middle Income Group Housing Scheme (1959)
Land Development and Assistance Scheme (1959)
Rental Housing Scheme for State Government Employees (1959)
Jhuggee and Jhopri Removal Scheme (1960)
The Third Five Year Plan (1961-66) aimed at land acquisition and development as also an
effective control on urban land. The annual plans (1966 -69) brought in the concept of
“economically weaker sections” The annual plans integrated this concept with the Subsidized
Industrial Housing Schemes which was in operation since the First plan. Up to 1970, the bulk
of funds were provided by the Government of India and Life Insurance Corporation of India
as loans and subsidies. The schemes of housing have social objectives because they were
meant for people belonging to the SC/STs or to the specified classes of employees and income
groups.
The extent of finance made available was usually 80% of the cost of construction as maximum,
and this varied from scheme to scheme. In case of Land Acquisition and Development
Scheme, 100% financial assistance as loan was given to Local Bodies/Urban Estate
Department.
Fourth Five Year Plan (1969-74) emphasized the low cost housing schemes in view of (a) high
cost of construction of the dwelling units, (b) insufficient contribution by the private and
cooperative sectors to meet the growing needs of houses for the poorer section, and (c)
deteriorating condition of older slums. It was in April 1970, that the Housing and Urban
Development Corporation (HUDCO) was started. Various State Governments started Housing
Boards funded through State budgetary allocation and the Slum Clearance Schemes were
initiated. The Housing Boards of the States started issuing debentures on State Government
Guarantee to which institutions like the nationalized banks contributed. The Housing Boards
are essentially construction agencies and not funding agencies. This function is to create and
manage the housing stocks. It was during 1977, that the Housing Development Finance
Corporation (HDFC) was started for housing finance.

Fifth Plan (1975-80) aimed at providing house sites to four million landless labour and
intensifying research on low cost housing mainly through manufacture of low cost building
materials. It decided to enhance the financial assistance to the State Housing Boards and Local
Bodies A scheme for improving the existing housing was also introduced during the Fifth Plan
In 1974, the Minimum Needs Programme and in 1975, The Twenty Point Economic
Programme were launched which emphasized providing housing for the poor and housing
construction through wage employment.
The Sixth Plan (1980-85) attempted to use the public sector resources in such a way that they
yield optimum results and provide maximum possible houses to absolutely shelter less
people.

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The Seventh Plan (1985-90) estimated the housing shortage of 24 7 million units. It called for
establishment of proper and diversified institutional credit for housing and construction to
cater the needs of housing development. It also stressed the need to strengthen the HUDCO
and creation of new Cooperative Building Societies an Urban Service Scheme was initiated
during 1990-91 with the assistance of UNICEF to cater to the need of shelter. The plan period
added a feather in the cap of housing by the establishment of National Housing Bank in 1988.
This gave a new direction to the decentralized housing finance system by promoting housing
finance institutions and facilitating proper cooperation amongst various agencies relating to
housing.

The Eight Plan (1992-97) covered the strategy of creating an enabling environment for
housing activity by eliminating various constraints and providing direct assistance to the rural
and urban self-employed, physically handicapped, widows and single women. It was during
this plan, that the Shelter Up gradation Scheme the Prime Minister’s Integrated Poverty
Eradication Programme was initiated with a loan component of Rs. 10000/- to be arranged
from the HUDCO/any other financial institution including Commercial Banks, subject to the
condition that the borrower holds the title to the land. This has a subsidy component too. The
VIII Plan outlay on housing has been Rs. 20000-25000 crores. During 1995-96, the HUDCO
sanctioned Rs. 1967 crores as loans and actually released Rs. 1229.5 crores about 90% was
spent on dwellings for the weaker sections and low income groups.

The Ninth Plan (1997-02) has not achieved the goal of “shelter for all”, despite the
liberalization of the financial sector and the housing shortage in India remains critical. The
major programmes that had been initiated by the government of India during this plan is “2
Million Housing Program” in 1998 and “Valmiki Ambedkar Away Yojana” in 2001.

The Tenth Five Year Plan (2002-07), a programme for rural housing was quite popular
because of 100% subsidy of Rs 20000 per beneficiary, has led to strengthening of dependence
of the rural poor on political and bureaucratic system. Given the large number of potential
beneficiaries awaiting the allotment of a free house and limited resources, there is a strong
need to make the selection of beneficiary more objective and non- controversial. The
mandatory provision for joint registration of houses in the name of both husband and wife is
flouted in many cases. In many states, field-level functionaries are unaware of the existence
of such a provision.

The Eleventh Five Year Plan (2007-2012) mainly focused on to asses the magnitude of the
housing needs of Urban Population, particularly the poor. The steps that had been taken
during the tenth five year plan has been reviewed and new targets are set in respect of urban
housing New financial targets are set for investment in urban housing in the public, private,
cooperative and self-help sectors covering augmentation, renewal up gradation and
retrofitting of housing stock.

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CHAPTER 3

INDUSTRIAL ANALYSIS

3.1 Company’s Profile

3.2 Housing Finance Products
3.3 Group and Subsidiary Companies
3.4 Guide to Housing Finance for Urban Population
3.5 Documents Required for Housing Finance
3.6 Loan Processing System
3.7 General Queries Related to Home Loans
3.8 List of Housing Finance Companies
3.9 Banks in Housing Finance Business

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3.1 COMPANY PROFILE
HDFC or Housing Development Finance Corporation Ltd. Is India’s largest housing finance
company with a market share of 55% in loan disbursals? Being in the business for more than
30 years, HDFC has an impressive loan portfolio for varied housing finance needs. In the home
loan segment, HDFC offers home loans for individuals to purchase or construct houses.

HDFC or Housing Development Finance Corporation Ltd. Founded in 1977 by Hasmukhbhai

Parekh, is an Indian company which is primarily in the business of providing home loans.
HDFC’s distribution network spans 243 outlets that include 49 offices of HDFC’s distribution
Company, Home Loan Services India Private Limited (HLSIL). In addition, HDFC covers Over 90
locations through its outreach programmes. HDFC’s marketing efforts continue to be
Concentrated on developing a stronger distribution network Home loans are also marked
Through HLSIL, HDFC Bank Ltd and other third party Direct Selling Agents (DSA).

BACKGROUND
Was incorporated in 1977 with the primary objective of meeting a social need – that of
promoting home ownership by providing long- term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.

BUSINESS OBJECTIVE
The primary objective of HDFC is to enhance residential housing through the provision of
housing finance in a systematic and professional manner, and to promote home ownership.
Another objective is to increase the flow of resources to the housing sector by integrating the
housing finance sector with the overall domestic financial markets.

ORGANIZATIONAL GOALS
HDFC’s main goals are to:

(a) Develop close relationships with individual households.

(b) Maintain its position as the premier housing finance institution in the country.

(c) Transform ideas into viable and creative solutions.

(d) Provide consistently high returns to shareholders, and

(e) To grow through diversification by leveraging off the existing client base.

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 Strength of HDFC Ltd.
Widest range of flexible home loan products
Counselling and advisory services for acquiring property
Special Schemes for groups.
Balance Transfer Facility.
Option to switch between schemes
Network of over 200 outlets and over 30 years of experience.
Special rates for HDFC customers (past and present) on all new loans
Low average loan to value ratio
Debt averse nature of borrowers
Post-dated cheques obtained from most customers or deduction at source
arrangement with employees.
Low instalment to income ratio
Steady level of prepayment
Growth in urban market/salaried class
Quality of underwriting

FINANCIAL INFORMATION
For the year ended March 31, 2008, HDFC reported a profit before tax amounting to Rs.
3373.50 crores as compared to Rs. 1967.78 crores for the previous year – an increase of 71%.
The profit before tax is inclusive of profit on sale of a part of the corporation’s investment in
its subsidiaries, HDFC Standard Life Insurance Company Limited and HDFC ERGO General
Insurance Company Limited and the entire sale of its holdings in its associate company,
Intelenet Global Services Private Limited amounting to Rs 636 26 crores (as compared to Rs.
32.98 crores in a subsidiary and associate company in the previous year).
After providing Rs 937.25 crores for taxes, the profit after tax is increased by 55% to Rs
2436.25 crores as compared with Rs. 1570.38 crores in the previous year.
For the quarter ended March 31, 2008, HDFC’s profit before tax amounted to Rs. 1091.62
crores as against Rs. 676.12 crores in the corresponding quarter of the previous year an
increase of 61%. The profit before tax is inclusive of profit on sale of a part of the Corporation’s
investment in its subsidiary, HDFC ERGO General Insurance Company Limited amounting to
Rs 202.07 crores. After providing Rs. 323.50 crores for taxes, the profit after tax for the
quarter ended March 31, 2008 increased by 40% to Rs. 768.12 crores as against Rs. 550.05
crores in the corresponding quarter last year.
The Board of Directors recommend payment of dividend for the year ended March 31, 2008
Of Rs. 25 per share as against Rs. 22 per share in the previous year.

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 FUTURE
HDFC has always been market-oriented and dynamic with respect to resource mobilisation as
well as its lending programme. This renders it more than capable to meet the new challenges
that have emerged. Over the years, HDFC has developed a vast client base of borrowers,
depositors, shareholders and agents, and it hopes to capitalise on this loyal and satisfied client
base for future growth. Internal have been developed to be robust and agile, to take into
account changes in the volatile external environment.
HDFC has developed a network of institutions through partnerships with some of the best
Institutions in the world, for providing specialised financial services. Each institution is being
Fine-tuned for a specific market, while offering the entire HDFC customer base the highest
Standards of quality in product design, facilities and service.

3.2 HOUSING FINANCE PRODUCTS

The various type of home loan products offered by HDFC Ltd are:
Home Loan: It offers home loans for individuals to purchase (fresh/resale) or construct
houses. Home loans can be applied for individually or jointly. HDFC finances up to 85%
maximum of the cost of the property (Agreement value + Stamp duty+ Registration charges)
Home Improvement Loan: It facilitates internal and external repairs and other structural
improvements like painting, waterproofing, plumbing and electric works, tiling and flooring,
grills and aluminium windows HDFC finances up to 85% of the cost of renovation (100% for
existing customers).

Home Extension Loan: It facilitates the extension of an existing dwelling unit. HDFC Finances
up to 85% maximum of the cost of the property (Agreement value + Stamp duty +Registration
charges)
Land Purchase Loan: Be it land for a dream house, or just an investment for the future, HDFC
Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 70%
of the cost of the land (Conditions apply). Repayment of the loan can be done over a
maximum period of 10 years.
Short Term Bridging Loan: The Short-Term Bridging loan will help in the interim period
between the sale of the old house and the purchase of a new house. One can avail of this loan
even if he is an existing customer of HDFC. HDFC finances up to 90% maximum of the cost of
the property (Conditions apply). Repayment of the loan can be done over a maximum period
of 2 years.
Non Residential Premises loans: HDFC’s Non-Residential Premises Loan facilitates
professionals to purchase or construct their own office premises, or even renovate their
existing office premises. HDFC finances up to 85% maximum of the cost of the property.

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Repayment of the loan can be done over a maximum period of 10 years (in case of
improvement-5 years).
Home Equity Loan: With an HDFC Home Equity Loan, one can encash his investment in a dwelling
unit without having to dispose it off The end usage of the funds will not be monitored by HDFC
However, the funds should not be used for speculation or any illegal purposes HDFC finances up to
60% maximum of the cost of property for existing customers and 50% maximum of the cost of the
property for new customers (conditions apply).

3.3 Group and Subsidiary Companies

HDFC Standard Life Insurance Company Limited: HDFC Standard Life Insurance Company Ltd
was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV
with 81.4% stake and Standard Life has a stake of 18.6%.
HDFC Standard Life Insurance Company Limited was one of the first companies to be granted
license by the IRDA to operate in life Insurance sector.
HDFC Asset Management Company Limited: HDFC Asset Management Company Ltd (AMC)
was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved
to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter
dated June 30, 2000.
AMC is a joint venture between housing finance giant HDFC and British investment firm
Standard Life Investments Limited. It conducts the operations of Mutual Fund and manages
assets of the schemes.
HDFC Trustee Company Limited: A company incorporated under the company act, 1956 is
the Trustee to HDFC Mutual Fund by the Trustee deed dated June8, 2000, as amended from
time to time HDFC Trustee Company Limited is wholly subsidiary of HDFC Ltd.
HDFC Chubb General Insurance Company Limited: A joint venture between HDFC, India’s
premier financial services company, and The Chubb Corporation, leading global non- life
insurer, formally launched its operations on October 17, 2002 in Mumbai.
GRUH Finance Limited: The group’s principal activities are the provision of housing Finance
and financial services to individuals and corporate sectors.
HDFC Venture Capital Limited: HLSIL manages the HDFC Realty business which offers
property solutions – buying, selling, leasing to individuals and corporate HDFC Realty is
present in all the major cities of India as well as in Dubai.

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HDFC Developers Limited:
HDFC Reality Limited: helps to search properties in all major cities in India and has transacted
in properties worth over Rs 500 crores. The main objective is to provide the buyer all the
services under one roof, from property search to visits at the property site, and also help with
the legal documentations.

HDFC Investments Limited:

HDFC Holdings Limited:
Home Loan Service India Private Limited:
HDFC Ventures trustee Company Limited:
HDFC Mutual Funds: has been one of the best performing Mutual Funds in last few years.
HDFC Asset Management Company Limited (AMC) functions as an Asset Management
Company for the HDFC Mutual Funds.

HLSIL: Home Loan Services India Private Limited is a wholly owned subsidiary of HDFC Ltd.
The company has been floated as a distribution arm of HDFC with an objective of offering
doorstep service to prospective clients of HDFC group.

HLSIL offers financial management solutions to individuals encompassing among other

products Home Loans, Life Insurance, Mutual Funds, Fixed Deposits and property solutions.

HDFC Bank: The 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
liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August
1994 in 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.

3.4 GUIDE TO HOUSING FINANCE FOR URBAN POPULATION

Generally, by the traditional sense of term “Housing loans”, it means finance for
buying/modifying a property. If you are a Resident or Non-resident individual who is planning
to buy a house in India, you can apply for a home loan. If you have decided to buy a property
in near future you can apply for a loan. Once you decided the maximum amount that you can
put into the property, all HFCs (Housing Finance Companies) let you know how much you are
eligible for and this helps you plan out your budget.

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As a customer you have an option of having a co-applicant to your loan to enhance your loan
eligibility All HFCs lay down conditions on, who can be co-applicants. All co-owners to the
property need to be co-applicants to the loan necessarily.
HFCs do not permit minors to join in as either co-owners or as co-applicants because a minor
is not eligible to enter into a contract as per law. Income of co-applicants (as decided by HFCs)
can be clubbed together to get higher loan eligibility given below some acceptable
relationships of a co-applicant for clubbing of income.

Income clubbing of co-applicants

Combination Income clubbing
Husband-Wife Yes
Parent-Son Yes (if only son)
Parent-Daughter Yes (if only child)
Brother-Brother Yes (if currently staying together
and intend staying together in the new property)
Brother-Sister No
Sister-Sister No
Parent-Minor child not eligible for loan
These are the basic terms and conditions applicable to the housing loan products only. These
are likely to vary with respect to different housing finance companies:
1. The loan to value ratio cannot exceed a particular percentage. This differs from
product to product and from one HFC to another.
2. The maximum tenure of the loan is normally fixed by HFCs. However HFCs do provide
for different tenors with different terms and conditions.
3. The instalment that you pay is normally restricted to about 35-40% of your monthly
Gross income. This is known as the Instalment to Income Ratio (IIR).
4. Your total monthly outflow towards all the loans that you have availed of including
the current loan is normally restricted to 50% of your gross monthly income. This is
known as Fixed Obligation to Income Ratio (FOIR).
5. You will be eligible for a loan amount, which is the lowest as per your eligibility. This
is calculated as per the IIR norms and FOIR norms as mentioned above.
6. Most HFCs consider your profile before they judge your repayment capacity. You are
judged on the basis of age, qualification, no of dependents, employment details,
employer credentials, work experience, previous track record of repayment of any
loan that you have availed of, occupation, the business to which your business relates
to if you are self-employed, your turnover in the last 3-4 years, etc.

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7. Some HFCs insists 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 takes place.
8. Most HFCs have a team of civil engineers visit the site to get a technical report on the
quality of construction and compliance with the local laws before they disburse the
loan.
9. Most HFCs 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 a HFC.
10. The disbursement of your loan is as per the progress of the construction of your
property unless it is a ready property in which case the disbursement will be by one
single cheque PEMI or Simple Interest on the loan amount disbursed to you in case of
a part disbursement will be payable by you on the disbursement.
11. The disbursement, in most cases, will be favouring the builder or the seller or the
society or the development authority as the case may be. The disbursement will come
in your favour under special circumstances only.
12. You repay the loan either through Deduction against Salary, Post Dated Cheques, and
standing instruction or by cash/DD.
13. The principal is amortized either on annual reducing or monthly reducing basis as the
case may be.
It is also important to know the kinds of charges that may be levied depending on the HFC
and the nature of loan. This can also serve as a guide to how one must negotiate and pay
back this loan.

Pre-disbursement charges
1. Processing fees
2. Administrative fees
3. Rate of Interest
4. Legal charges
5. Technical charges
6. Stamp duty and registration charges
7. Personal Guarantee form charges

Post-disbursement charges
8. Cheque Bounce charges
9. Delayed Payment charges
10. Additional charges
11. Incidental charges
12. Prepayment charges
13. PDC swapping charges

Pre-disbursement charges:

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Processing fees: This is a charge that is levied by most HFCs to cover the costs that they incur
on the processing of your loan application. This has to be paid at the time of submission of
the application form. It is normally charged as a percentage of the loan amount sanctioned.
Some HFCs also charge a flat fee based on the loan amount instead of a percentage. When a
lower amount is sanctioned the excess fees paid at the submission of the application is
adjusted with the charges, which you make to the HFC subsequently. Most HFC’s refund
you’re processing fees if your application is rejected.

Administrative fees: This charge is again, normally, a percentage of the loan amount
sanctioned. It is collected by the HFC for the maintenance of your records, issuing interest
certificates, legal charges, technical charges, etc. through the tenure of the loan. It is payable
by you when you accept the offer letter given by the HFC. This payment has to be made before
you avail of the disbursement. The mode of collection of these fees varies from one HFC to
another.

Rate of Interest: This is the rate of interest applicable on your loan amount through the tenure
of the loan. It is charged on the principal on either annual reducing method or monthly
reducing method. Almost all the HFCs give you an option to select either a fixed rate of
interest or a variable rate of interest.

Legal charges: Some HFC levy legal charges that they incur on getting your property
documents vetted by their panel of lawyers.

Stamp duty and registration charges: HFCs that go in for a registered mortgage or English
mortgage pass these charges on to you. These are rather heavy in certain states depending
on the laws laid down by the state where you buy a property.

Personal Guarantee form charges: Since the personal guarantees provided by you need to be
stamped, these charges are also recovered from you. They are charged to you by HFCs who
demand for Guarantees.

Post-disbursement charges

Cheque Bounce charges: In case the cheques through which you make the payment to HFCs
get dishonoured, some minimum charges are levied by the Bank. The same are recovered
from you.

Delayed Payment charges: HFCs charge delayed payment charges from you if you delay the
payment of instalments beyond the due date.

Additional charges: These are levied as a percentage on the delayed payment charges by
most HFCs. They are levied if you fail to pay the dues within the stipulated time.

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Incidental charges: This is payable in case the HFC sends a representative from their organization
to collect their outstanding dues It is normally charged at a flat rate per visit. These charges are
levied by most HFCs.
Prepayment charges:

PDC swapping charges: In case you wish to swap the PDCs given by you to the HFC for your
EMI repayments, some HFCS charge a flat fee for the same.

Eligibility for loan:

IF SALARIED SELF SALARIED
 Latest Salary slip showing all earnings,  Income tax returns for the last 3
deduction & net salary years, with computations Balance
 Form 16 Sheets
 Bank statement for the last six month  Profit and Loss account
 Recent photograph  Bank statement for the last 6 months
 Recent photograph Residence proof  Recent photograph
(i.e. copy of pass port/ration  Residence proof (i.e. copy of pass
card/driving license/PAN card) port/ration card/driving license/PAN
 Identity proof (i.e. driving license/PAN card)
card)  Identity proof (i.e. driving license/PAN
 Photocopy of property documents card)
 Copy of Approved plan  Photocopy of property documents
 A detailed estimate with cost and  Copy of Approved plan
measurement details.  A detailed estimate with cost and
 Process fee cheque measurement details.
 Process fee cheque

Deciding on your repayment capacity

To understand how the income of a customer is considered to arrive at his repayment
capacity, it is first necessary to classify customers into salaried and self-employed
individuals.
1. The income of the salaried individual is considered in the following manner:
Gross Monthly Income as it appears on the salary slip

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 Less Any non-regular variable income appearing on the salary slip (including overtime
etc.)
Add 50% of the average variable income of the last six months
Add Any cash/voucher payments for which proof can be submitted
Add 50% of the average variable cash/voucher payments with proof like travelling etc.
Add HRA receivable if not being received already in the salary slip
Add 50% of the average annual incomes of the last two years like Bonus, etc.
Equals Gross monthly income used for loan eligibility calculations
The above income is calculated for the calculation of eligibility using IIR and FOIR norms. For
calculation of FOIR, the instalments of all the loans that you have availed of currently for
which repayment is being made is taken into account as well. The lower of two eligibilities is
considered as your maximum repayment capacity.
1. To consider the income of self-employed individuals we further classify them into
professional and non-professionals
Professionals: Comprising Doctors, Chartered Accountants, lawyers, architects etc. Loan
eligibility for professionals is calculated using their Gross Professional Receipts and not the
Net Profits as in the case of self-employed non-professionals.
Non-professionals: The income of non-professionals is normally calculated by HFCs in the
following manner:
Average of the net profits of the last 2 years, as it appears in the profit and loss account
(Returns need to be filed for the same. They should be filed regularly before the due date is
over.).

Less Any income, which is unusual and non-recurring in nature like sale of some asset, etc.
which affects profit substantially.

Add Any expense that is unusual and non-recurring in nature like repairs and maintenance
that has not been capitalized and affects profit adversely.

Add 50% of the average annual incomes of the last two years.
Equals Income used for loan eligibility calculations.
The above income is calculated for the calculation of eligibility using IIR and FOIR norms. For
calculation of FOIR, the instalments of all the loans that you have availed of currently for
which repayment is being made is taken into account as well. The lower of two eligibilities is
considered as your maximum repayment capacity.

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3.5 Documents Required For Housing Finance
General Documents required for all cases:

1. Latest original pay slip/certificate of the applicant/co-applicant showing allowances

and deductions duly authenticated by the drawing & disbursing officer.
2. Form-16A
3. Passport size photography
4. Bank statement for last six months
5. Proof of residence
6. Proof of identity
7. Processing fee
8. Property documents

Construction/Improvement/Extension cases
1. Photocopy of registered title deed
2. Copy of approved/sanctioned plan
3. Cost estimate for the proposed construction/extension/improvement
4. Photocopy of patta & land tax receipt
Refinancing
1. Demand letter from earlier financer to close the loan with details of current
outstanding & list of documents held.
2. Photocopies of all the submitted with the banks.
3. Statement/proof of payment history for last 2 years.
Purchase of ready-made houses from Development Authority or private
Builders
1. Photocopy of agreement for sale.
2. Photocopy of allotment letter clearly indicating the CUST and BUA of the house
3. Photocopy of money receipts of the amount already paid.
4. Land purchase/repurchase from a development authority
Land purchase/repurchase from a development authority
1. Transfer permission from development authority.
2. Affidavit from purchaser to submit the NOC for mortgage.
3. In specific cases of land purchase from development authority, allotment letter from
Development authority, has to be submitted, along with updated EC and registered
title Deed.

Extension/improvement loan on core house from development authority

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 1. First allotment letter indicating the BUA and Cost
2. Possession letter
3. Money receipts of payments made to development authority
4. Affidavit
5. NOC from BDA/OSHB to mortgage the house in favour of HDFC

Self-employed cases
1. Photocopies of IT returns for last 3 years
2. Photocopies of computation of individual taxable income for last 3 years.
3. Photocopies of profit & loss account, balance sheet, schedule of depreciation for last
3 Years.
4. Partnership deed along with audited profit & loss account, balance sheet of the firm.
5. Write-up of business.

3.6 LOAN PROCESSING SYSTEM

One can avail a maximum loan of 85% of the cost of the property, including the cost of the
land. Before sanctioning the loan any HFC must consider the no of years of service of the
applicant and his equated monthly instalment (EMI) would be 35% of his gross monthly salary.

There are four steps that involved in the loan processing system:

1. Appraisal
2. Legal
3. Technical
4. Disbursement

Appraisal: The first step of the loan processing system is the appraisal. In this step HDFC
judges the financial credibility of the applicant and see whether the property for which the
applicant want to avail loan is approved by any government development authority.

Legal: Next step of the loan processing system is the legal documentation. In this stage the
verification of the documents takes place.

Technical: This is the third step of the loan processing system. During this stage any member
of the HDFC Ltd personally go visit the site/property for which the loan has to be sanctioned.

Disbursement: This is the last stage of the loan processing system. When the above
Mentioned three steps are fulfilled after that only the first disbursement of the loan takes
Place.

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3.7 GENERAL QUERIES RELATED TO HOME LOANS
What is a pre-approved property?

A pre-approved property is a property where HFC has done a legal or technical check on the
property documents.

The builder gets his property pre-approved from various HFCs to increase the marketability
of his project. Every HFC has its own methods of carrying out legal and technical checks on
the property.

What are the advantages of buying a pre-approved property?

By buying a property in a pre-approved project, one can safely assume that the property is
legally and technically clear. For the customer this means quality construction and authorised
construction. Moreover, the documents that you submit to the HFC in a pre-approved project,
are your own property documents: While in the case of non-approved project, the entire list
of documents pertaining to the land along with the various permissions granted to the builder
need to be handed over to the HFC.

In case of a pre-approved property if there is a delay from builder, does it mean

you don’t have to pay HFC?
When a HFC pre approves a property of a developer, it only means that the property is legally
and technically clear. This does not mean that the HFC guarantees the performance of the
developer. You have to pay off your loan if the developer delays the construction or even calls
off the project completely.

Can one get a loan for agricultural land / farmhouse/holiday house?

No, most HFCs do not provide finance for buying agricultural land, farmhouse or a holiday
home.

Can one get finance to buy property abroad?

No, HFCs do not provide finance for acquiring property abroad. The reason for this is being
difficulty in verification of the asset and knowledge of foreclosure laws in the country where
property is purchased.

Can a person get loans towards Deposit for taking a house on lease?
No, HFCs do not provide finance towards Deposits for taking a house on lease.

Can a person avail a loan against a property in another city?

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Most HFCs insists that either the applicant the property should from location where the HFC
has a presence. However, some HFCs do finance properties even if the above two conditions
are not met.

Can a person rent a property for which he has taken a loan?

Yes, one can rent a property for which he has taken a loan. Here you benefit as you claim the
entire interest paid by you towards the loan instalments against the rental income. The
balance interest, if any can be set off against other income.

Can a person get a loan for Non Residential commercial Premises?

Most HFCs provide loan for Non Residential Premises. However they insist that the applicant
needs to be professionals who have to be self-employed. The terms and conditions of such
loans would be different from the normal home loan product.

What is Pugdi system?

This is an old age system where the owner of the property had leased it to an individual
resident decades ago, the individual has paid a large sum upfront and continues to pay a very
nominal rent of, say, Rs. 100 per month. The maintenance of the premises is the responsibility
of the resident.
If the resident wants to sell the property, he needs to get consent of the owner. The owner
would give consent provided he gets a share (approx. 25-33%) of the sale proceeds. This figure
is mutually agreed between the resident and the owner. The transfer of rights to the buyer
can happen only if the owner has given his consent to the same, failing which the buyer will
have no ownership rights.

Can a person get a loan on Pugdi system?

No, HFCs do not provide loans for the property that is under Pugdi system.

Is parking space/Garage included in the cost of the property?

Yes, parking space / Garage included in the cost of the property.

3.8 List of Housing Finance Companies:

1. Housing Development Finance Corporation Ltd. 2. Bank of Baroda Housing Finance
Ltd.
2. Cent Bank Home Finance Ltd.
3. ICICI Home Finance Company Ltd.
4. SBI Home Finance Ltd.
5. Can Fin Homes Ltd.
6. Corpbank Homes Ltd. 8. PNB Housing Finance Ltd.
7. Corpbank Home limited
8. PNB Housing Finance Ltd.

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 9. Vibank Housing Finance Ltd.
10. DHFL Vysya Housing Finance Ltd.
11. Ind Bank Housing Ltd.
12. Birla Home Finance Ltd.
13. Global Housing Finance Corporation Ltd.
14. LIC Housing Finance Ltd.
15. Sundaram Home Finance Ltd.
16. TATA Home Finance Ltd.
17. Dewan Housing Finance Corporation Ltd.
18. GRUH Finance Ltd
19. Housing and Urban Development Corporation Ltd
20. Weizmann Homes Ltd.
21. National Trust Housing Finance Ltd.
22. GIC Housing Finance Ltd.
23. Manipal Housing Finance Syndicate.
24. REPCO Home Finance Ltd.
25. Saya Housing Finance Company Ltd.
26. Utkal Housing Finance Ltd.
27. SICOM Housing Development Finance Ltd.
28. SRG Housing Finance Pvt. Ltd.
29. Manoj Housing Finance Company Ltd.
30. Satyaprakash Housing Finance India Ltd.
31. Vishwakriya Housing Finance Ltd.
32. Haware’s Housing Development Finance Corporation Ltd.
33. Orange City Housing Finance Ltd.
34. The Synergy Mortgage Loan Company Ltd.
35. Adhunik Grihnirman Vittiya Corporation.
36. Lokseva Housing (Aurangabad) Finance Ltd.
37. Inara Housing Finance Ltd.
38. Livewell Home Finance Ltd.
39. Janhavi Home Development and Finance Ltd.
40. Transcorp Housing Finance Ltd.
41. Dharohar Housing and Finance Ltd.
42. Vidarbha Housing Development Finance Company Ltd.
43. Orissa Rural Housing and Development Corporation Ltd.
44. Swagat Housing Finance Company Ltd.
45. Rajiv Gandhi rural Housing Corporation Ltd.
46. GLFL Housing Finance Ltd.
3.9 Banks in Housing Finance Business:
1. Allahabad Bank
2. Andhra Bank
3. Bank of India
4. Bank of Maharashtra
5. Bank of Punjab
6. Bank of Rajasthan
7. Dena Bank

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8. Federal Bank
9. ICICI Bank
10. IDBI Bank
11. Jammu and Kashmir Bank
12. Karnataka Bank
13. Punjab National Bank
14. Saraswat Bank
15. South Indian Bank
16. Standard Chartered Bank
17. State Bank of India
18. Syndicate Bank

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CHAPTER 4

SURVEY
AND ANALYSIS WORK
4.1 The City of Bhubaneswar
4.2 Bhubaneswar City Map
4.3 Analysis

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4.1 THE CITY OF BHUBANESWAR
BHUBANESWAR (which means “The Lord of the Universe”) is the capital of southern state,
Orissa Once the capital of ancient Kalinga, the city has a long history and is today s centre for
commerce and religious activity. However, the modern city of Bhubaneswar was designed by
the German architect Ono Konigsberger in 1946 It became the modern capital of the state of
Orissa in 1948, a year after India gained its independence from Britain Before Bhubaneswar,
Cuttack was the capital of Orissa until 1947. Both Bhubaneswar and Cuttack are known as the
“twin cities” of Orissa With its variety of Hindu temples, Bhubaneswar is to be referred as the
temple city of India.

Geography: Bhubaneswar is situated between 21°15’ North Latitude 85°15’ Longitude and
at an altitude of 45 meters above sea level, the average temperature range between 15°C in
the winter to a maximum of 40°C to 45°C in the summer. The south-east monsoons appear in
June. The average annual rainfall is 150 cm, most of which is recorded between June and
October. This large variation in temperature is because extensive development and the
accompanying loss of forest cover in North India provide no hindrance to the heat and cold
waves which swept that region every year.
Geographically, Bhubaneswar is situated in the eastern coastal plains of Orissa and south-
west of the river Mahanadi. The city is subdivided into a number of townships and housings.
The most notable are the nine units which lie to the west of Janpath, the city’s main arterial
road. Initially meant to house the bulk of city’s population, the 9 Units are now emerging as
commercial districts.
To the east of Janpath are Shahid Nagar, Satya Nagar, Kharvel Nagar, Ashok Nagar and Bapuji
Nagar. They are private residential areas, now fast changing their characters into. Commercial
zones, Hotels, malls, departmental stores, coaching institutes vie for space in these prime
localities.
Tremendous growth caused the development of the Patia and Chandrashekarpur areas.
National Highway 5 which once bordered the city now runs right through it, making
Bhubaneswar unique among all the major cities of India. Bhubaneswar is in fact now primarily
expanding in the above two areas.
Demographics: As of India’s 2001 census, Bhubaneswar has a population of 647,302. Males
constitute 56% of the population and females 44%. The city has an average literacy rate of
79%, higher than the national average of 59.5%. Ten percent of the population is under 6
years of age.

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 4.2 BHUBANESWAR CITY MAP

Time Zone IST (UTC+5:30)

Area 161 sq. km (62 sq. mi)
Elevation 33m (108 ft.)
District(s) Khordha
Population 843,402 est. (2021)
Density 4900/sq. km (12691/sq. mi)
Mayor Sulochana Das
CODES: Pin code 7510xx
Telephone +0674
Vehicle OR-02

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 4.3 ANALYSIS
1. The first question was aimed to find out the number of years for which the respondent is
associated with the organization. The following table and the pie-chart represent the
respondent’s response.

No of years with the organisation No of respondents

Less than 5 years 68
5-10 years 18
10-15 years 8
More than 15 Years 19

No of respondents

More than 15
years, 16.82%,
17%
10-15 years, Less than 5 years
7.08%, 7% 5-10 years
Less than 5 10-15 years
5-10 years, years, 60.18%,
More than 15 years
15.92%, 16% 60%

This pie-chart represents that 60.18% i.e. 68 respondents were associated with their
organization for the last five years, 15.92% or 18 respondents for 5-10 years, 7.08% or 8
respondents for 10-15 years and 19 or 16.82% for more than 15 years. This means that the
corporate people altering their jobs too much in the initial phase of their carrier because they
want growth. HFCs also consider all these things while giving housing loans to corporate
people. Now a days as the competition between different HFCs are growing up to capture
more market share and the age profile of the housing loan customers reduced to late 20s-
mid 30s. So from the above data it is clear that there is a huge potential in the market and
HFCs can target the potential customers.

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2. This question was designed to know the average annual salary of employees in an organization. The
data collected for this question is represented by the following table and the Pie-chart:

Average annual salary No of respondents

Less than 2 Lakhs 35
2 – 5 Lakhs 53
5 – 10 Lakhs 12
More than 10 Lakhs 3
Not responded 10

No of respondents

2.66% 8.85%

30.97%
10.62% Less than 2 lakhs
2-5 lakhs
5-10 lakhs
More than 10 lakhs
Not responded

46.90%

The above pie-chart represents that the average annual salary of employees in most of the
organizations lies between 2-5 lakhs (46.90% or 53 respondents). And almost 31% i.e. 35
respondents earning less than 2 lakh. This helps any HFCS to understand more better the
Bhubaneswar market and also him in taking financial decisions.

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3. This question was designed to find out the maximum manpower of any organization. The
following table and the pie-chart represent the maximum manpower of the companies
visited.

Maximum manpower No of respondents

Less than 100 51
100 – 200 12
200 – 400 11
More than 400 33
Not responded 6

No of respondents

5.30%

Less than 100

29.20% 100 - 200
45.13%
200 - 400
Mor than 400
Not responded
9.75%
10.62%

This pie-chart represents that most of the organisations in Bhubaneswar having their
maximum manpower less than 100 (45.13% or 51 respondents), it means that these
organisations are small scale organisations. It is clear from the pie-chart as well as the table,
the second highest responses are for those organisations which are having their maximum
manpower more than 400. It means that new companies are entering in the Bhubaneswar
market which is a good news for most of the HFCS as the probability of capturing more
corporate people increases.

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4. This question was framed in the sense to know how many of the corporate people working
in different organisations belong to Bhubaneswar. The data collected for this question in
given below:

Employees from Bhubaneswar No of respondents

Less than 20 55
20 – 40 24
40-75 9
More than 75 17
Not responded 8

No of respondents

7.08%

15.04%
Less than 20
20 - 40
48.67% 40 - 75
7.97%
More than 75
Not responded

21.24%

The pie-chart represents that the employees(less than 20) in different organisations
belonging to Bhubaneswar capturing almost 50% of the total manpower of that organisation
in Bhubaneswar. As the number of employees belonging to Bhubaneswar increases
consequently their strength in different organisations decreases. But an organisation having
20 or more local people is good enough. This represents that most of the people prefer to
work at their native places, and the organisations also understand most of the people
performing well and give good business in the environment they are familiar with. This is also
good for HFCS so that they can easily trap up the people who belong to Bhubaneswar and
penetrate in different organisations to trap the corporate people who does not belongs to
Bhubaneswar, but want to settle down in Bhubaneswar.

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5 (1). This question was designed to know how many of the organisations in Bhubaneswar
providing loan to their employees. But the main objective to design this question is to find
out how many of the organisations providing home assistance or home loan to their
employees. The data collected for this question has been represented by the following table
and the pie-chart:

Companies providing loan No of respondents

YES 41
NO 63
Not responded 9

No of respondents

7.97%

36.28%
YES
NO
Not reaponded

55.75%

This pie-chart represents only 36.28% i.e. 41 organisations out of 113 organisations
providing any type of loan assistance to their employees and 63 organisations out of 113 i.e.
55.75% does not provide any type of loan assistance to their employees.

5 (ii). Out of 41 organisations only 20 organisations is providing home loans to their

employees and the remaining 21 organisations providing different type of loans to their
employees that include personal loan, two wheeler loan, car loan etc.

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6 (i). This question was designed to find out how many of the corporate employees have their
own houses in Bhubaneswar city, so that an exact picture can be displayed. The data collected
for this question has been shown by the following table and the bar graph:

Employees have their own houses No of respondents

YES 30
NO 78
Not responded 5

No of respondents
80.00%

70.00%

60.00%

50.00%

40.00%
No of respondents
69.03%
30.00%

20.00%
26.55%
10.00%
4.42%
0.00%
Yes NO Not responded

This bar graph represents that only 26.55% (i.e. 30 corporate employees out of 113) having
their own houses and the rest 69.03% (i.e. 78 out of 113) corporate people doesn’t have their
own houses. This data as well as the bar graph represents what the majority of corporate
people says from different organisations in the Bhubaneswar city.

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6 (ii). This question was asked along with the previous question in order to find out where the
maximum corporate people from different organisations stay. The data collected for this
question has been shown by the following table as well as by bar graph:

Type of house No of respondents

Company leased 3
Own 9
Ranted 69
Other / NR 32

No of respondents

70.00%

60.00%

50.00%

40.00%
No of respondents
61.06%
30.00%

20.00% 28.31%

10.00% 7.69%
2.67%
0.00%
Company Own Rented Other / NR
leased

The bar graph represents that maximum corporate employees in the Bhubaneswar city are
staying on the rented houses. 69 corporate people out of 113 i.c. 61.06% of the corporate
people is staying on the rented houses. And only a mere 2.67% i.e. 3 corporate people is
staying at the company leased houses, the reason behind this is that HQ of the most
organisations is not here and only at the HQ employees get the company leased houses. Some
of the corporate people have their own houses, but this category of corporate people mostly
responded from the government organisations.

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7. This question is asked in this sense that how many of the corporate people are aware about
the home loan products, when people are aware about the different home loan products only
after that are thinking of availing home loan:

Type of Home Loan No of respondents

Home loan 44
Home improvement loan 3
Home conversion loan 1
Home extension loan 1
Land purchase loan 13
Short term bridging loan 7
Home equity loan 0
Non-residential premises loan 2
Not responded 32

45.00%
No of respondents
38.94% 37.17%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00% 11.50%
10.00% 6.20%
5.00% 2.66% 0.89% 0.89% 1.75%
0.00%
0.00%

No of respondents

The bar graph as well as data represented by the table refers that corporate people are aware
about the home loan, but not about the home loan products completely. Mostly people
responded to home loan (38.94), some of them also responded to land purchase loan and
short term bridging loan and about the rest a meagre only. So it must be necessary for
different HFCS to start some awareness programme about the home loan products among
the corporate employees as well as for the people who are indulging in their own businesses.

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8. This question was designed in order to find out right now who is the market leader in
housing finance sector in Bhubaneswar city as well as how much people are aware about
different HFCs. The data collected for this question has been represented by the following
table and bar graph:

Major financer No of respondents

HUDCO 2
HDFC 26
SBI 29
ICICI 10
Any other/NR 46

No of respondents
45.00%
40.70%
40.00%

35.00%

30.00%
25.67%
25.00% 23.00%
No of respondents
20.00%

15.00%
8.85%
10.00%

5.00% 1.77%
0.00%
HUDCO HDFC SBI ICICI Any other/NR

The bar graph represents that there is a tough competition between the HDFC LTD. And SBI,
But SBI is leading nearly by 3% in the corporate sector
Corporate employees are very much aware about the different HFCs, but still some
employees are there who is not aware much about the HFCs and these are the people who
are hesitating to approach the HFCs.

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9. This question was framed to know what must be the probable reasons for the corporate
employees that they keep in mind or look for before availing housing loan from any
housing finance company. The few reasons for taking housing loan from any housing
finance company is given in the following table along with the number of respondents for
each option:

Reasons for taking loan No of respondents

Convenient working hours 4
Excellent customer service 20
Recommended by friends 9
Attractive home loan products 21
Overall reputation of organization 15
Others / NR 44

No of respondents

3.54%

17.71%
Convenient working hours

38.94% Excellent customer service

Recommended by friends
7.96%
Attractive home loan products
Overall reputation of organization
Others / NR
18.58%
13.27%

The bar graph as well as the data given in the above table represents that the first
preference given by most of the corporate people is attractive home loan products’ and the
second preference given by them to the ‘excellent customer service’. This trend is exactly
correct because first anybody will consider the home loan products and its features after
that only he will be thinking that from which housing finance company he will be availing
loan. Than he must also think that which HFCs has excellent customer service after that
only, he will apply for the home loan.

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10. This question was designed to know how many of the corporate people want a
presentation on home loans. The data collected for this question has given below in the
table and represented well by the pie-chart:

Presentation No of respondents
YES 29
NO 60
Not responded 24

No of respondents

21.24%
25.66%

YES
NO
Not respondents

53.10%

This pie-chart represents that only 25.66% respondents i.e. almost one-fourth of the total
respondent’s suryed want a presentation on home loans. This means that they know about
the home loan but with the help of presentations most of the corporate people want to
know exactly about the home loan procedure and other features of the home loan
products.
This will definitely help the HDFC Ltd. In doing their corporate activities and do some
Promotional activities in the houses

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1. This question was designed to know what the people think about the HFCs in the city of
Bhubaneswar whether they have customer centric approach or not. The data collected
for this question is given by the following table as well as by the pie-chart.

Customer centric approach No of respondents

YES 33
NO 26
Not responded 54

No of respondents

29.20%

YES
47.80%
NO
Not responded

23%

The study reveals that only 29.20% respondents think that the HFCs has customer centric
approach and 23% respondents don’t think so and 47.80% doesn’t responded at all. This
implies that the HFCs have to do some awareness programmes along with this they have to
be more customers centric. Because in this competitive arena customer is the king because
they have so many options available and now the trend of the market has changed now,
today’s market is more customers oriented.

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2. This question was asked to know whether the home loan provided by the different HPCs
is easily available or not. The table and the pie-chart represents the response of the
corporate employees.

Availability of loan No of respondents

YES 35
NO 18
Not responded 60

No of respondents

30.98%
YES
NO
53.09% Not responded

15.93%

This pie-chart represents that 30.98% corporate employees think that the home loan is easily
available from the different HFCs and 15.93% thinks that the home loan is not easily available.
The 53.09% corporate employees does not responded at all because they or their relatives
didn’t availed the housing loan from any HFC.

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13. This question was asked to know what the corporate employees think about the
turnaround time. The data collected for this question is represented by the following table
and pie-Chart:

Turnaround time No of respondents

Short 9
Medium 30
Long 12
Not responded 62

No of respondents

7.97%

26.55%
Short
54.86%
Medium
Long
10.62% Not responded

54.86% corporate employees do not respond at all because they or their relatives didn’t avail
any housing loan from any of the HFC. 26.55% corporate employees think that the turnaround
time i.e. time involved in the sanction of the home loan is medium, 7.97% thinks it is short
and 10.62% thinks that it is long. The turnaround time also varies from one HFC to another.

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14. This question was asked what the people think about the rate of interest and interesting
results are found for this question which has represented by the below mentioned pie-chart:

Rate of interest No of respondents

Market oriented 36
More than market 7
Less than Market 11
Not responded 59

No of respondents

31.86%

Market oriented
52.20%,
More than market
Less than market
6.20%
Not responded

9.74%

People are very much concerned about the rate of interest. 52.20% do not respond at all
because they didn’t have availed any housing loan from any housing finance company. 31.86%
thinks that the rate of interest is market oriented and 6.20%, 9.74% thinks that the rate of
interest charged by different housing finance companies more than market the market and
less than the market respectively. But people are still not clear about the fixed rate home loan
rate of interest and floating rate of interest and they don’t know about the adjustable home
loan rate of interest. So the HFCs has to put forward their step and start some of the
awareness programmes.

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15. This question was asked to measure the service quality of the HFCs on the basis of four
parameters. The data collected for this question has been represented by the following table
and pie-chart:

Service Quality No of respondents

Excellent 8
Good 35
Average 9
Poor 2
Not responded 59

No of respondents

7.08%

30.97% Excellent
52.21% Good
Average
Poor
7.97%
Not responded

1.77%

52.21% of the respondents do not respond at all because they never had tasted the home
loan and its product, so they can’t say anything about that. Only 7.08% corporate people think
that the service quality provided by different HFCs is excellent. 30.97% corporate people think
that the service quality is good, 7.97% and 1.77% think that the service quality is average and
poor respectively.

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16. This question was asked to know what the most of the people think about the guidance
and counselling provided by the different housing finance companies. The data collected for
this question is represented by the following table pie-chart:

Guidance & Counselling No of respondents

Excellent 8
Good 32
Satisfactory 16
Unsatisfactory 23
Not respondent 59

No of respondents

3.54%

28.32% Excellent
52.21% Good
Satisfactory
Unsatisfactory
14.16%
Not responded

1.77%

ss52.21% of the corporate people didn’t responded at all because they had never availed the
home loan. Only a mere 3.54% think that the quality of guidance and the counselling provided
by the different HFCs is excellent. 28.32% feels that the quality of guidance and counselling
provided by the different HFCs is good, however 14.16%, 1.77% feels that the quality of
guidance and counselling provided by the different HFCs is satisfactory and unsatisfactory
respectively.

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CHAPTER 5

CONCLUSION
The desire for a safe and secure home is timeless and universal. If one were to study the
sector-wise performance over the last five years, the housing finance industry has
outperformed everyone’s expectations. Housing Finance has not only grown in previous years
but also has become customised to needs the housing finance industry is on solid ground and
has emerging prospects. However, the industry has become overcrowded with players of all
sizes. The entry of banks into the sector has further intensified competition. Only companies
that have a strong brand image, large distribution network and a customer friendly approach
stand to benefit in future.
HDFC Ltd. Is the number one player in the home loan sector in India and is growing at the rate of 30-
35% annually. As far as Bhubaneswar city is concerned, it is found that SBI home loan has
outperformed in the corporate sector, although the overall growth rate of SBI in India has declined to
18% from 18.7% from previous years.

As far as the research is concerned, it is found that people those who already have houses are
also interested in buying a house because they find it a good place for investments, tax
rebates and for their children in the coming years. It is found that the responses would be
more on the perception basis than that of awareness.
The important issues like selecting the right type of interest rate, turnaround time, service
quality etc. should be given more emphasis, however one cannot mitigate or negate all the
factors. Also a customer must also have to evaluate and consider important factors such as
the tenure of the loan and how long does he think he needs to generate funds to pay off this
liability. A sound decision will not only create an asset for him in terms of a good home but
also ensure peace of mind.
The HDFC-HDFC Bank merger is expected to be completed by the second or third quarter of
FY24. The consolidation of Housing Development Finance Corp. and unit HDFC Bank Ltd. will
create a more than $200 billion financial services behemoth, and the parent will be able to
tap the bank’s deposits to grow, rather than pile on more debt.
The merger, expected to conclude in the second quarter of 2023, will give HDFC access to 16.7
trillion rupees ($202 billion) of funds comprising so-called low-cost current and savings
account deposits and time deposits of the bank. That will let it continue expanding its assets,
which stood at 6.9 trillion rupees at the end of September.

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CHAPTER 6

SUGGESTIONS,
RECOMMENDATIONS AND
FINDINGS
Suggestions and Recommendations

Advertisement: There are many ways through which HDFC Ltd. Can communicate with its
customers like newspapers, hoardings, magazines, journals, television, and internet. But for
the corporate employees the most preferable one is internet because corporate people once
or twice must check their emails. HDFC Ltd. Can record the presentation on home loan with
basic queries related to it and upload on the net that is the easiest way to trap the corporate
employees
Penetration: For the developing states like Orissa where the per capita income is less than the
overall per capita income and a majority of people are in the requirement of a house. HDFC
Ltd. Can open up their service stations in the remote areas and capture the prospective
customers.
Loan Processing System: Loan processing system is overall good but it improvement, some
value should be added to it

Findings
The housing and construction industry is the only industry which makes use of all other
industries, it needs ceramics, pipes, steel, cement, glass, tiles, iron, wood, cloth. It can provide
employment for thousands of people and the transportation industry also get a boost,
labourer’s income will increases, and spending will increases which results in the increase in
the personal disposable income. Over and above the housing and construction industry will
contribute a lot to raise the country’s GDP.
Lack of awareness still exists in the Bhubaneswar city among some of the corporate people
also; they are more of perception oriented.
Some of the people giving more emphasis to the interest rate and repayment period rather
than the service quality of the Housing Finance Company Some of the corporate people also
still feels insecure in availing loans from the private organisations, but they are having
confidence in government organisations.

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CHAPTER 7

REFERENCES

www.google.com
www.apnaloan.com
www.hdfc.com
www.wikipedia.com
www.gharbari.com
www.orissa.com

How to Get the Best Home Loan by W. Frazier Bell.

The Complete Home Loan Guide: Where to Go, Whom to Ask, What to Do by
Prosenjit Das Gupta.
Mortgage Lending Home Mortgage Loan Processing by Kenney.

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CHAPTER 8

Questionnaire
HDFC Ltd
Housing Finance Survey
Dear sir/madam,
We represent HDFC Ltd. And are conducting a survey on housing finance. Kindly spare some
of your valuable time to go through the questionnaire and your views on this topic. The
information provided by you will be kept confidential and only be used for academic purpose.
Name: _____________________________________________________________________
Age__________________ Qualification______________________
Organization__________________________Destination_____________________________
Contact_________________________ Email Id____________________________________
Annual Income_________________ Location of the organization______________________
1. Since how many years you are with the organization?

(a) Less than 5 years (b) 5-10years (c) 10-15years (d) More than 15 years
2. What is the average annual salary of employees?
(a) Less than 2lakhs (b) 2 ---5lakhs (c) 5---10lakhs (d) More than 10 lakhs
3. What is the maximum manpower of your organization?
(b) Less than 100 (b) 100---200 (c) 200-400 (d) More than 400
4. How many of the employees are from Bhubaneswar?
(a) Less than20 (b) 20---40 (c)40—75 (d) More than 400
5. (i)Is your company providing any type of loan? (a) Yes □ (b) No □

(ii) If yes then please give the details_____________________________________

6. (i)Do all the employees have their own houses? (a) Yes □ (b) No □

(ii) If no, please give the detail where max employees stay

(a)company leased house______(b)own_____(c)rented_____(d)any other________

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7. Which type of loan do the maximum employees have availed/availing?
(a) Home loan (b) Home improvement loan (c) Home extension loan
(d) Home conversion loan (e) land purchase loan (f) short term bridging loan
(g) Home equity loan (h) Non-residential premises loan
8. The major financer of housing loan is
(a) HUDCO (b) HDFC (c) SBI (d) ICICI (e) Any other_________________
9. Reasons for taking housing loans from any housing finance company:
(a) Convenient working hours (b) Excellent customer service (c) Recommended by friends
(d) Attractive home loan products (e) Over reputation of the organization
(f) Others please specify__________________________________________________
10. Do you want a presentation on home loans? (a) Yes □ (b) No □
Opinion of your staff (who have availed availing loan from any housing finance Company
(HFCs))
(a) Whether HDFC Ltd. Has customer centric approach (a) Yes □ (b) No □
(b) Ease of availability of loan (a) Yes □ (b) No □
(c) Turnaround time (repayment period) (1) short term (ii) medium (iii) long term
(d) Pricing (rate of interest) (i) market oriented (ii) more than the market
(iii) less than the market
(e) Service quality (i) Excellent (ii) good (iii) average (iv) poor
(f) Guidance and counselling (i) Good (ii) very good (iii) satisfactory (IV) unsatisfactory

Any suggestions if, are most welcomed________________________________________

Signature: Thank You

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