A

PROJECT REPORT
ON

“HOME LOAN IN INDIA”

AT

HOUSING DEVELOPMENT FINANCE

CORPORATION LIMITED (HDFC)
A PROJECT REPORT SUBMITTED PARTIAL FULFILLMENT FOR
THE AWARD OF
“BACHELOR OF BUSINESS ADMINISTRATION”
Submitted by

B. MEGHANA
HT. No. 1157 – 19 – 684 – 009
Under The Guidance Of
Mrs. M. E. SONIA JYOTHI
(Assistant Professor)

OSMANIA UNIVERSITY
PRAGATI MAHAVIDYALAYA DEGREE COLLEGE
(AFFILIATED TO OSMANIA UNIVERSITY - HYDERABAD)
(2019 – 2022)
 STUDENT DECLARATION

I hereby declare that this project report titled “HOME LOANS IN INDIA”

at HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

(HDFC), submitted by me to the Department of Business Administration, of

PRAGATI MAHAVIDYALAYA DEGREE COLLEGE, is a bonafede work under

taken by me and it is not submitted to any other university or institution for the award

of any degree diploma/certificate or published any time before.

DATE:

PLACE:

B. MEGHANA

HT. NO. 1157-19-684-009

 ABSTRACT

Owning a home is one of life’s biggest aspirations of a person. Home loans are the most

easily accessible financial supplement to purchase a person’s dream home. A resident or non-

resident individual who is planning to buy a house in India can apply for a home loan at the

banks or Housing Finance Institutions. Once the maximum amount to put into the property

has been decided, the Housing Finance Institutions or Banks will let the customer know that

how much he/she is eligible for and this helps to plan out the budget. In order to get the

housing loan, the customer has to go through a Credit Appraisal process. Each bank /

Housing Finance Company (HFC) has its own norms and standards to evaluate borrower’s

ability to repay the loan and the credit worthiness of the customer to be eligible for loan

application. During this whole process, the loan eligibility and the repayment capacity of the

borrower are established on the basis of his/her Disposable Income, Stability and continuity

of income, Age, Educational qualifications, Number of dependents, Co-applicants income,

Employer, Nature of employment or business (if self-employed), Experience, Securities

proposed, Taxation history, Assets owned, Alternative / additional sources of income, Other

loan obligations, Investments, Saving habits, Other present and future liabilities. A

prospective borrower has to go through the various stages (i. e. Financial, Legal, Technical

etc.) of credit appraisal process as practiced by different banks / HFCs. This study mainly

focuses on the guidelines followed by commercial banks in India regarding the appraisal

process of housing loans with specific reference to Indian Overseas Bank.

 ACKNOWLEDGEMENTS

I am grateful to DR. A. MADHAVI LATHA, PRINCIPAL and Mrs. M. E.

SONIA JYOTHI, Lecturer, PRAGATI MAHAVIDYALAYA DEGREE

COLLEGE, for their technical expertise, advice, and excellent guidance. They not

only gave my project a scrupulous critical reading but added many examples and

ideas to improve it.

I am indebted to my other faculty members of PRAGATI MAHA

VIDYALAYA DEGREE COLLEGE who gave time and again reviewed options of

this project and provide many valuable comments.

I would like to express my appreciation towards my friends for their

encouragement and support throughout this project.

A final word of thanks goes to everyone else who made this project possible.

Your contributions have been most appreciated.

B. MEGHANA
HT. NO. 1157-19-684-009
 CONTENT

CHAPTER PARTICULARS PAGE.NO

CHAPTER-1 INTRODUCTION 1-9

1.1 Introduction 1-4
1.2 Need of the study 5
1.3 Objectives of the study 6
1.4 Research Methodology 6-8
1.5 Scope of the study 8
1.6 Limitations of the study 9
CHAPTER-2 REVIEW OF LITERATURE 10-28
2.1 Theoretical Background 10-18
2.2 Article 19-28
CHAPTER-3 INDUSTRY PROFILE & COMPANY PROFILE 29-72
3.1 Industry Profile 29-36
3.2 Company Profile 37-40
CHAPTER-4 DATA ANALYSIS & INFERENCE 68-78
4.1 Data analysis and inference 68-78

CHAPTER-5 FINDINGS, SUGGESTIONS AND CONCLUSION 79-82

5.1 Findings 79
5.2 Suggestions 80
5.3 Conclusion 81-82
CHAPTER-6 BIBLIOGRAPHY 83
6.1 ANNEXURE 83
TABLE DESCRIPTION PAGE.NO
NO

3.1 INTEREST RATES PROVIDED BY VARIOUS BANKS 32

3.2 TYPE OF LOAN, RATE OF LOAN 40

3.3 HDFC BANK CURRENT DATA 41

4.1 OUTSTANDING HOUSING LOAN 69

4.2 NRI HOUSING LOAN 70

4.3 OUTSTANDING EDUCTION LOAN 71

4.4 OUTSTANDING VEHICAL LOAN 72

4.5 OUTSTANDING MORTGAGE LOAN 73

4.6 TOTAL ADVACES 74

4.7 SHORT TERM LOAN 75

4.8 FAST CREDIT LOANS 76

4.9 OUTSTANDING LOANS SANCTIONED AGAINST GOLD 77

ORNAMENTS

4.10 OUTSTANDING LOANS SANCTIONED FOR PRNSIONERS 78

LIST OF TABLES
TABLE.NO DESCRIPTION PAGE. NO

3.1 DOMESTIC CREDIT AS A % OF GDP 35

3.2 AMOUNT DISBURSED &AVG TICKET SIZE 36

4.1 OUTSTANDING HOUSING LOAN 69

4.2 NRI HOUSING LOAN 70

4.3 OUTSTANDING EDUCTION LOAN 71

4.4 OUTSTANDING VEHICAL LOAN 72

4.5 OUTSTANDING MORTGAGE LOAN 73

4.6 TOTAL ADVACES 74

4.7 SHORT TERM LOAN 75

4.8 FAST CREDIT LOANS 76

4.9 OUTSTANDING LOANS SANCTIONED AGAINST GOLD ORNAMENTS 77

4.10 OUTSTANDING LOANS SANCTIONED FOR PRNSIONERS 78

LIST OF FIGURES