`

A PROJECT REPORT
ON

“A STUDY ON FINANCIAL BUSINESS STRATEGIC

TOWARDS HOME LOANS IN INDIA WITH RESPECT
TO HDFC BANK”

SUBMITTED IN THE PARTIAL COMPLETION

OF DEGREE OF BACHELOR OF COMMERCE

(ACCOUNTING & FINANCE)

Submitted By

SACHIN SURESH YADAV

UNDER GUIDANCE OF

Prof. Rahul Jaiswal

ASM's Institute of Management &Computer Studies (IMCOST)

 DECLARATION BY LEARNER

I the undersigned SACHIN SURESH YADAV here by, declare that

the work embodied in this project work titled A STUDY ON
FINANCIAL BUSINESS STRATEGIC TOWARDS HOME
LOANS IN INDIA WITH RESPECT TOHDFC BANK forms
my
own contribution to the research work carried out under the
guidance of Prof. Rahul Jaiswal is a result of my own research work
& has not been previously submitted to any other University for any
other Degree / Diploma to this or any other University.

Wherever reference has been made to previous works of other, it has

been clearly indicated as such and included in the bibliography. I,
here by further declare that all information of this document has
been obtained and presented in accordance with academic rules and
ethical conduct.

Name & Signature of the Learner

Certified by

Name & Signature of the Guiding Teacher

 ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous
& depth is so enormous.
I would like to acknowledge the following as being idealistic channels &
fresh dimensionsin the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me
chance to do this project.
I would like to thank the Principal of our college for providing the
necessary support required for completion of the project.
I take this opportunity to thank our Course coordinator Prof. Tejasvi
Bhosale, for her moral support & guidance.
I would also like to express my sincere gratitude towards my project
guide Prof. Rahul Jaiswal whose guidance and care made the
project successful.
I would like to thank my College Library, for having provided various
reference books and magazines related to my project.
Lastly, I would like to thank each & every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
 A STUDY ON FINANCIAL BUSINESS STRATEGIC
TOWARDHOME LOANS IN INDIA WITH RESPECT TO
HDFC BANK

INDEX

CHAPTER PAGE NO.

NO TOPIC

CHAPTER 1 INTRODUCTION TO HOME LOAN

1.1 Introduction to home loans
1.2 Advantages and Dis-advantages of home loans
1.3 Types of Home loans and Eligibility
5 - 23
criteria, documents required and EMI
calculator
1.4 Home loan process in India
1.5 Top Home Loan bank in India
1.6 Factors to consider while applying for a
home loan
CHAPTER 2 INTRODUCTION TO HDFC BANK
2.1 Why to choose HDFC bank
2.2 Industry profile
24 - 45
2.3 Product of HDFC bank home loans
2.4 Home loan procedure
2.5 Types of HDFC home loan schemes
CHAPTER 3 RESEARCH & METHODOLOGY
3.1 Objectives
3.2 Hypothesis
3.3 Scope of the study
46 - 52
3.4 Limitations
3.5 Sampling technique
3.6 Sample size
3.7 Methods used for data collection
CHAPTER 4 REVIEW OF LITERATURE
4.1 Literature review
53 - 54
4.2 Latest trends
4.3 News articles
CHAPTER 5 DATA ANALYSIS & INTERPRETATION
5.1 Data analysis 55 - 74

CHAPTER 6 CONCLUSIONS & SUGGESTIONS

6.1 Findings of the study 75 - 77
6.2 Suggestions
CHAPTER 7 BIBLIOGRAPHY
78
CHAPTER 8 QUESTIONNAIRE
79 - 83
 CHAPTER-1
INTRODUCTION

1.1 INTRODUCTION TO HOME LOAN:

Home is where the heart is - owning a home is a lifelong dream for most of the
people. Home is more or less a lifetime investment and hence home loans are an
integral part of every person who dreams and wants to have a living space of his own.
Buying a home is probably the biggest purchase most of us will ever make in our
lifetimes.
Owning our own home is a watershed event in our life. You are the master (or
mistress) of your own space, your little corner in the universe. But the process of
finding your little nest is a stressful one. A once in a lifetime investment needs a loan
and that is how a home loan comes into the scheme of things in your life.

Almost all public and private sector banks are offering home loans at attractive rates
for purchasing their dream home. Home loan usually cover a variety of types. All
Banks have come out with home loan products studded with features and value
additions that make the schemes not only attractive but also serve as a substantial
6
source to the borrowers for owning their dream home.

7
‘Home’ brings to mind comfort, joy, pride and family time. Every homeowner will tell
you that her home gives her a sense of identity and its ownership is sacrosanct; this is
one asset she would never trade for anything in the world.
A home loan is an amount an individual borrows from a financial institution such as a
housing finance company to buy a new or a resale home, construct a home or renovate
or extend an existing one. The money is borrowed at a specific interest rate and repaid
within a particular duration in smaller instalments known as EMIs (Equated monthly
instalments)
This is the most common type of home loan. As the name suggests, these loans are
meant for buying a new apartment, row house, or bungalow, from a developer or a
development authority. You can use this type of loan to purchase under-construction
or ready properties.

Home is where the heart is - owning a home is a lifelong dream for most of the
people. Home is more or less a lifetime investment and hence home loans are an
integral part of every person who dreams and wants to have a living space of his own.
Buying a home is probably the biggest purchase most of us will ever make in our
lifetimes.
Owning our own home is a watershed event in our life. You are the master (or
mistress) of your own space, your little corner in the universe. But the process of
finding your little nest is a stressful one. A once in a lifetime investment needs a loan
and that is how a home loan comes into the scheme of things in your life.

8
1.2 ADVANTAGES AND DISADVANTAGES:

 ADVANTAGES:

Owning a house is a dream many people fail to fulfill in their lifetimes. It takes the
time, effort, and sacrifice of many desires to gather sufficient capital to buy a house.
In most cases, people dedicate all their lives to saving for their dream house but can
only save for the deposit, barely.

To save a sufficient amount to buy a house is a privilege that only a few people enjoy.
Due to this reason, people who wish to own a house in the United States end up
taking a house loan. Before deciding whether to go for a house loan or not, one must
conduct a thorough analysis..

 The Dream House:

Everyone wants to buy their dream house, but it is challenging to save for a house
when there are numerous other problems that one has to cope with. Every time a
person starts to save for a house, other problems come in the way. Even if a person
can draw up that kind of money, the property’s price rises by the time they can do so.
With a house loan, the buying capacity of an individual increases, and they can buy
their dream house.

 Low-Interest Rate:

Another advantage of a house loan is that it is subjected to a low interest rate. The
biggest threat to a lender is that the borrower is unable to repay the loan. When it
comes to a house loan, if a borrower fails to repay the loan, the lender can sell off the
house to take the money back, which imposes a low-interest rate on the loan compared
to others.

 Ease in Repayment:

A house loan taken is not to be paid in one go. A borrower can pay off the debt in
monthly installments. The monthly installment amount is lower than one’s monthly
income, which is easier to pay. The course of time over which a person has to repay
the loan can be chosen based on the age and the years left for retirement.

9
  Benefits in Tax:

People who take out house loans are subjected to receive income tax benefits. The
amount of tax that has to be paid to the government is reduced as the money that one
pays as interest is deducted from the overall income tax value.

 DISADVANTAGES:

When an analysis is to be carried out and a decision has to be reached, it is wise to

oversee the wrong side. Just listing down the advantages is not the right approach.
There is a wrong side to everything. Even taking a house loan has its disadvantages.
Here are the most significant disadvantages for anyone who is considering going for
this loan.

 Interest:

Even though the interest rate on a house loan is lower than other loans, in the end, a
person is paying way more than borrowed. When a person decides to sell their
property, they will have to face loss as the right selling price will be the principal
amount plus the interest paid, which is too high. It is one of the most significant
disadvantages of a house loan.

 A Long-term Commitment:

Another disadvantage is that taking a house loan means that the repayment period
will be very long. During these years, people cannot take any other loans as they will
have to spend their real income on the repayment of loans. Therefore, before opting
for this loan, one has to prepare themselves for a long-term commitment.

 Loss of Opportunity:

Loss of opportunity is one of the most significant disadvantages of house loans. With
a house loan, a person cannot expect profit. If the same amount is invested in some
other financial instrument, a high rate of return can be earned. It is an opportunity that
many people fail to consider.

10
1.3 TYPES OF HOME LOAN AND ELIGIBILITY CRITERIA:

Types of Home Loan:

Lenders offer home loans, not only for buying a house but also for a variety of
other purposes. Some of the popular types of home loans available in the financial
market are described below.

 Loans for Purchase of Land

Several banks offer loans for land purchase. Purchasing a land is a flexible option, the
buyer can save funds and construct a house whenever his finances allow or just have
the land as an investment. Up to 85% of the cost of the land is given as loan by
lenders like Axis Bank.

 Eligibility Criteria for Purchase of Land

AGE EMPLOYMENT
18 years to Salaried, Self-employed, Professionals, and
65 years Non-professionals

 Loans for Home Purchase

The most popular type of home loan is the loan for purchase of a new or a pre-
owned home. This loan is also commonly available and is offered by many banks
in different variants. The interest rate is either floating or fixed and generally
ranges anywhere between 9.85% and 11.25%. Also, 85% of the total amount is
offered as a loan by many banks.

11
  Eligibility Criteria for Home Purchase Loans:

PARTICULARS SALARIED SELF-EMPLOYED

AGE 18 years to 65 years 18 years to 65 yeears
EMPLOYMENT Minimum two years of 750 or above
experience.
CREDIT SCORE Minimum five years 750 or above

 Loans for Construction of a House

This loan is specially designed for people who want to construct a place according to
their wishes rather than buying a pre-constructed house. The approval process for this
type of loan is different for it takes into account the cost of plot also. The most
important clause when applying for a home construction loan is that the plot must
have been purchased within a year for the plot cost also to be included in the loan
amount. The loan amount is decided based on a rough estimate of the construction
cost. The amount may be disbursed at one go or in multiple installments. Popular
home construction loans include the schemes offered by Bank of Baroda, UCO Bank
and Canara Bank.

 Eligibility Criteria for a Loan for Construction of a House

PARTICULARS AGE EMPLOYMENT CREDIT SCORE

SALARIED 18 to 65 years Minimum 2years 750 or above
SELF-EMPLOYED 18 to 65 years Minimum 5years 750 or above

 House Expansion or Extension Loans

Want another balcony or an additional bedroom? No worries, some banks also offer
loans for house expansion including alteration of current structure and construction of
new rooms. HDFC Home Extension loan and house renovation loan offered by Bank
of Baroda are popular in this category.

12
  Eligibility Criteria for Home Expansion or Extension Loans

AGE EMPLOYMENT
18 years to 65 years Salaried, Professionals, Non-
professionals, and Self Employed

 Loans for Home Improvement

Renovation and repair works like external and internal repair, painting, construction
of overhead water tank and electrical renovation certainly will make your house look
better. But if you lack the finances for repair and renovation, banks like Union Bank
of India,Vijaya Bank offer specialized home improvement loans.

 Eligibility for Home Improvement Loan

AGE EMPLOYMENT
18 years to 65 years Salaried, Professionals, Non-
professionals, and Self Employed
 Balance Transfer Home Loans

This option can be availed when an individual wants to transfer his home loan from
one bank to another bank owing to reasons like lower interest rates or better services
offered by the other bank. This is done to repay the remaining loan at a revised,
lower interest rates offered by the other lender.

Eligibility Criteria for Balance Transfer Home Loans

AGE EMPLOYMENT
18 years to 65 years Salaried, professionals, non-
professionals, and self employed

13
DOCUMENTS REQUIRED:

The following document are required, along with your duly-filled loan application.

AGRICULTURISTS SALARIED BUSINESSMEN /

CUSTOMERS NON-SALARIED
PROFESSIONALS
Application form with Application form with Application form with
photograph photograph photograph
Identity and residence Identity and residence Identity and residence
proof proof proof
Last 6 months bank Last 6 months bank Last 6 months bank
statements statements statements
Processing fee cheque Processing fee cheque Processing fee cheque
Copies of title documents Latest salary slip Educational Qualification
of agricultural land Certificate and Proof of
depicting landholding Business
Copies of Title documents Form 16 Business Profile and
of Agricultural land Previous 3 years
depicting crops being Income Tax returns (
cultivated self and
business)
Statement of previous Previous 3 years
2 years of loan availed Profit/Loss and Balance
sheet

14
1.4 EMI CALCULATOR

A home loan EMI calculator allows you to determine the loan instalment amount or
EMI towards your home loan. It is an easy-to-use digital tool, which helps you make
informed decisions when buying a residential property.

In addition, having prior knowledge of your home loan EMI allows you to chalk out
the following:

 Affordability of a home loan

 Deciding the down payment for your home loan
 Effective financial planning to ensure timely
repayment Formula for Home Loan EMI Calculation
To calculate their home loan EMI, individuals can use the following formula:
In the above formula, ‘N’ represents the total number of monthly EMIs, and ‘P’ is
EMI = [P x R x(1+R)^N] / [(1+R)^N-1]
the principal or loan amount. Moreover, ‘R’ refers to the rate of interest per month.
So, if the interest rate per annum is 13%, the value of ‘R’ will be 13/(12 x 100)

How Does a Home Loan EMI Calculator Work?

Home loan instalment calculators are extremely easy to use. All you need to do is to
enter a few details pertaining to the loan amount, interest rate, and tenure. Once done,
you will get your EMI details almost instantly.

Example: Let’s say you are planning to take a loan of Rs. 30 lakh at an interest
of 7% p.a. for a tenure of 10 years. Enter the details in the calculator. Your EMI
will come up to Rs. 34,833.

15
1.5 Home Loan Process in India – Step by Step Procedure to
Get Home Loan:

The process to get a home loan in India involves several steps, which before
digitization of banking were complex and time-consuming for applicants. Today,
online house loan procedure is not only easy but also quick. Your loan can be
disbursed in just a few days. If you aren’t aware of the steps involved in the
home loan process, read below:

Step 1: Loan Application

The first step in the process of availing of a home loan is to fill out the home loan
application form wherein you have to mention your personal details and also the
details about your income, employment, existing liabilities, property, and so on.
Earlier, you had to visit the bank and fill a long application in a paper format, but
today, you can do it online as well as offline

Step 2: Submission of Application & Required Documents

After filling out the home loan application, attach the home loan documents required
by the lender, and submit them to the lender.

Step 3: Payment of Home Loan Processing Fees

After submitting the home loan application form and required documents, you might
have to submit a processing fee (as required by the lender). The home loan processing
fee is a non-refundable levy that varies from lender to another.

16
This fee is levied by the lender to begin the home loan process and maintain the home
loan account of the applicant. It usually varies from 0.50% and 2% of the sanctioned
loan amount. However, there are some lenders who do not charge any processing fees
or waive off this fee on certain occasions. Some lenders also keep a minimum or/and
maximum limit on the amount of processing fee.

Step 4: Discussion with the Lender

After submitting the application form & documents, the applicant has to wait until
further notification by the lender. Within this waiting period, the lender verifies your
details and decides the amount for which you are eligible based on your repayment
capacity.

During this period, the lender can also ask you to pay a visit (or may visit you
themselves) for a face-to-face interaction before sanctioning the loan. This is done to
gather more information about the borrower and assess their repayment capacity.

Step 5: Verification

The next step is verification of the documents submitted and other details of the
borrower to validate the information provided by them in the home loan application.
Representatives of the bank may even visit your home or workplace for verification.
This process also involves your scrutinizing your credit score and credit report from
credit bureaus like CIBIL, Experian, CRIF High Mark, and Equifax.

If the given documents and information are all in order and correct, this process is
usually quick

Step 6. Home Loan Approval

After successfully completing the steps mentioned above, the lender will provide you
the home loan approval or sanction letter, which includes the following details:

 Sanctioned amount of loan

 Applicable interest rate
 Type of rate of interest (Fixed, Variable, or Hybrid)
 Repayment tenure
 Mode of repayment
 Special scheme (if any)
17
  Terms & conditions, and policies of home loan

After receiving the sanction letter, you have to sign and submit an acceptance copy (a
duplicate copy of the sanction letter) to the lender, if you are satisfied and agree with
the content of the letter. At this stage, you will need to pay administrative fees (if
any) to the lender.

It is advised to read all details mentioned in the sanction letter carefully before
signing it.

Step 7: Property Verification & Legal Scrutiny

Before loan disbursement, the lender will verify the property to be purchased or
constructed. You will need to submit original copies of your property’s title deed, no
objection certificate (NOC), encumbrance certificate, and other documents as required
by the lender.

After that, the lender will conduct a legal check on the property to ascertain that its
title is clear and it is indisputable. The lender will also conduct the technical valuation
of your property. A representative of the lending institution will visit the property for
inspection.

For under-construction property, the lender will scrutinize the property’s location, the
stage, quality, and progress of the construction. In case of ready to be sold or re-sold
property, the lender scrutinizes its age, ownership, maintenance, locality, legal
clearances, and the quality of construction.

18
1.6 LIST OF TOP HOME LOAN BANKS IN INDIA:

For most people, owning a home is one of the most significant accomplishments they
will ever realize, and it is also an expensive Endeavour. Giving such a dream life
requires a lot of work on the buyer's part, and the only way to fit the home into their
budget is by taking out a Home Loan.

A home or housing loan is a sum of money a person borrows, typically from banks
and other lending institutions. Depending on the loan's terms, the borrower must repay
the loan balance plus interest ranging from 10 to 30 years in Easy Monthly
Instalments, or EMIs.

The 10 Best Home Loans and their Interest Rates in the Indian Market for 2023 are
discussed below to help you make your home-buying decision so that you can choose
the best Home Loan in India for yourself.

 Top Home Loan Banks:

Following are best home loan banks in India 2023, along with the respective
housing loan interest and processing fees-

NAME OF INTEREST RATES (% p.a.)

LANDER
Up to Rs Above Rs Above Rs
30 lakhs 30 75 lakh
lakh & Processing
up to
Fees
Rs 75 lakh

19
STATE 8.60- 9.50 8.60-9.40 8.60-9.40 0.35% of the loan amount a
BANK OF maximum of INR 10,000
INDIA plus GST.
HDFC 8.45-10.35 8.65- 8.60-9.40 Up to 0.50% of the loan
10.60 amount or INR 3000
whichever is higher, plus
applicable taxes.
BANK OF 8.85-10.85 8.85- 8.85-10.85 Up to 0.50% of the loan
BARODA 10.85 amount or a maximum of
INR 750 plus GST.
PUNJAB 8.60-9.35 8.55-9. 8.55-9.25 0.35% of the amount,
NATIONAL 25 subject to a minimum and
BANK maximum of INR 2500 and
INR 15000,
respectively.
AXIS BANK 8.75-9.15 8.85-9.15 8.75-9.15 Up to 1% of the loan
HOME amount or INR minimum
LOAN 10000 with processing fee
plus
GST.
ICICI 9.00-9.80 9.00-9.95 9.00-10.05 0% to 0.50% of the loan
HOME amount (plus applicable
LOAN taxes).
LIC 8.65- 8.65- 8.65-10.50 up to 0.5% of the
HOUSING 10.10 10.30 loan amount plus
FINANCE GST. processing fee.
HOME
LOAN
ADITYA 9.00-9.75 9.00- 9.00-12.50 1% of the loan amount with
BIRLA 12.50 processing fee.
HOME
LOAN

20
 CITIBANK 8.35-9.25 8.35-9.25 8.35-9.25 0.50% of the loan amount
HOME plus GST.
LOAN:
BAJAJ 8.75 8.75 8.70 up to 1.0% of the loan
HOUSING onwards onwards onwards amount with applicable
FINANCE GST.
TABLE 1.2

OVERVIEW OF THE ABOVE TABLE:

 SBI Home Loan

SBI Home Loan is considered the best bank for Home Loan in India. Home
loans from the State Bank of India have some of the most attractive and best
home loan interest rates in India, starting at 8.55% p.a.

A loan tenure extension option of up to 30 years guarantees a comfortable repayment

period. The processing fee for these loans is 0.35 per cent of the loan amount
(minimum Rs. 2,000; maximum Rs. 10,000) plus applicable taxes.

On SBI Home Loans, female borrowers are also eligible for an interest reduction of
0.05%. They are one of the nation's most popular housing loan products because
there are no additional fees, and prepayment penalties are entirely waived.

 HDFC Home Loan

To those who qualify, HDFC Home Loans offers affordable home loans with interest
rates starting at 8.60% per year. This is another best Home Loan providers in India.

For loans with terms of up to 30 years, the EMI begins at Rs. 762 per lakh. For
employed individuals, the processing fee for these housing loans will not exceed Rs.
3,000 (plus applicable taxes); unemployed individuals will not exceed Rs (plus
applicable taxes).

 Bank of Baroda Home Loan

Home loans from the Bank of Baroda have some of the best home loan rates in India,
starting at 7.95% p.a. and going up to 30 years with simple repayment options. In

21
addition, the bank offers loans up to Rs. 10 crores and Bank of Baroda housing
loans have processing costs as low as 0.25 per cent of the loan amount.

The bank levies no prepayment penalties for home loans with floating interest
rates. One of its key benefits is the Bank of Baroda home loan's ability to be topped
up to five times during the loan term.

 PNB Home Loan

With a maximum loan amount of Rs. 1 crore, Punjab National Bank offers several
home loan schemes at affordable rates beginning at 7.75% p.a.+

The repayment period may be extended to 30 years at your discretion (maximum). A

processing fee of 0.35 per cent of the loan amount plus GST is charged. EWS, LIG,
and MIG applicants can take advantage of discounted rates through PNB's PMAY
program.

 Axis Bank Home Loan

Axis Bank Home Loan is one of the best bank for Home Loan. With interest rates
beginning at 6.90% p.a. on floating-rate loans and 12% p.a. On fixed-rate loans, Axis
Bank provides eligible customers with housing loan options.

For floating-rate loans, the tenure may be increased to 30 years, while for fixed-rate
loans, it may be increased to 20 years. In addition, up to 1% of the loan amount
(minimum of Rs. 10,000) may be charged as the processing fee, of which Rs. 2,500
plus GST must be paid in advance at the time of loan application login

 ICICI Home Loan

Housing loans are available from ICICI Bank to qualified borrowers at competitive
interest rates starting at 8.60% p.a., with loan terms of 30 years and simple
repayment options. In addition, they lack processing fees on floating-rate loans,
which range from 0% to 0.50% of the loan amount (plus applicable taxes).

Additionally, ICICI collaborates with the PMAY Scheme, giving homebuyers an

advantage when purchasing. It is considered one of the best bank for Housing Loan.

 LIC Housing Finance Home Loan:

22
LIC Housing Finance Limited's affordable home loan options range from Rs. 1 lakh
to Rs. 15 crores, with flexible 30-year terms and attractive interest rates starting at
6.90% p.a. Depending on the circumstances, the processing fee is up to 0.5% of the
loan amount plus GST.

FIC HFL provides the best housing loan programs for NRIs and retirees t competitive
interest rates.

 Aditya Birla Home Loan:

Home loans from Aditya Birla Housing Finance are available with processing costs as
low as 1% of the loan amount and interest rates as low as 9.00% to 12.50% p.a.

For a loan repayment period of up to 30 years, loan amounts varying from 75% to
90% of the property's value are available. In addition, for home loans with floating
rates, there are no prepayment penalties

 Citibank Home Loan:

Citibank offers low-interest home loans starting at 6.50% p.a. for amounts up to Rs.
10 crores. For more manageable repayment, you can extend the term to 25 years. In
addition, you can receive financing for 80% of the total cost of the property
through Citibank's home financing programmers.

 Bajaj Housing Finance Home Loan:

Bajaj Housing Finance is a leading home loan provider in India. It offers home loans
at attractive interest rates ranging between 7.70% - 14.00%. Its processing fees are up
to 1.0% of the loan amount with applicable GST. It is one of the most popular home
loan providers existing in Indi

23
 1.7 Factors to Consider While Applying for a Home Loan:

The following are the key factors to take into account when applying for a
Home Loan-

 Total EMI Amount

You will pay monthly instalments for your borrowing until the end of the loan
period. Each EMI consists of both principal and interest. Therefore, your principal
repayment will increase with each EMI, and your interest payments will decrease
over time.

 Duration

Check the length of time you will take to repay the loan. You can choose a
period that works for you based on the nature of your expected income.

 Rate of Interest

The bank or financial institution charges interest in exchange for money lending
services. The principal amount determines the interest rate, and you will repay the
loan.

 Initial Payment or Down Payment

A down payment is a sum you contribute on your own. You should put down as
much money as possible to lower the loan without straining your finances. You will
pay less interest the smaller the loan amount.

Many banks will lend you 100% of the property's value, subject to qualification.
Nevertheless, it would be best to put down 10% to 20% at the very least to
avoid paying excessive interest and guarantee a manageable repayment
schedule.

 Mortgage Insurance

Home loan insurance, also known as loan cover term assurance, is a type of
insurance policy that offers your family financial security in the event of your
untimely passing.

If something unfavourable happens, the insurance provider will pay back the loan

24
balance on which the insurance was purchased. This ensures that the unpaid dues'

25
monetary hardship will not fall on your family. Moreover, to prevent defaults in the
event of an unfortunate event, numerous banks and housing finance firms insist that
customers purchase a loan cover word guarantee plan.

 Additional Fees

Other administrative, processing or service fees that banks impose on borrowers at

the time of the loan application may exist in addition to the EMIs. Make sure you
review these with the lender before applying for a loan.

Check to see if they are monthly fees or one-time charges; if they are the latter, your
monthly budget needs to be adjusted to account for them alongside your EMIs.

26
CHAPTER NO: 2.1 WHY CHOOSE HDFC BANK LOAN

HDFC (Housing Development Finance Corporation Limited) is one of India’s largest

home loan providers which provides home loans to buy, build, renovate or redecorate
your home with HDFC Bank’s range of home loans. What makes HDFC bank home
loan convenient for a majority of people is its EMIs starting from ₹700 per lac and
interest rates start from 7.75%* p.a.

The Home Loan Options with HDFC Bank:

 Home Loan: HDFC Bank offers Home loan to purchase a fresh or resale
house, to construct/build your own houses. To avail one of these loans you
can apply individually or jointly. (Applying jointly increases your loan
eligibility)
 Home Improvement Loan (HIL): Home improvement loans are similar to a
house loan where you get funds to improve /renovate your home which you
already own. A home renovation loan allows you to upgrade and do the right
repairs to your home. The funds from a home improvement loan can be used
for: painting, waterproofing, roofing, plumbing and electrical works,
flooring, grills, compound walls, repair, re-modelling, renovation, etc.
 Home Extension Loan (HEL): A home extension loan provides you with
funds to extend your existing home to meet the changing requirements of
your growing family. Be it extending to another room or building another
floor.

Apart from these housing loans the bank also offers a wide range of housing
products which includes:

27
 Plot Loans
 Rural Housing Loans

28
  Inclusive Home Loans
 Top-up Loans
 Balance Loan Transfer
 Loans For NRI/PIO

CURRENT INTEREST RATE TABLE FOR HDFC HOME LOAN:

FOR WOMEN FOR OTHERS

UPTO 30 LAKHS 70.75 to 8.25% 7.75 to 8.25%
30.01 – 75 LAKHS 7.90 to 8.40% 7.90 to 8.40%
75.01 LAKHS and 8.00 to 8.50% 8.00 to 8.50%
above

Why go with HDFC Home Loan products?

 HDFC Home Loans are affordable and easier on your pocket as they come
on a comparatively low-interest rate.
 Customized repayment options are available to suit your requirements
& pocket.
 Loan processing for HDFC home loan products is completely
transparent, thus, there is no scope for any hidden charges.
 Expert legal and technical advice available to help you make the right decision
for your lifetime investment (home purchase).
 You can give instructions to the bank to directly cut your Home Loan
EMIs from your HDFC Bank Savings Account, thus, saving you the
trouble of procuring, signing, and tracking post-dated cheques.
 The bank provides your doorstep service for the document collection.
 Rural Housing Finance for Salaried and Self Employed by the hdfc bank
provides home loans for government & private Sector employees for rural
properties. Under this scheme home loans are also made available to the
businessmen & traders who are filing Income Tax Returns for the last
three years.

Balance Transfer facility: In case you are an existing borrower and have an ongoing
home loan from any bank, you can opt for a balance transfer to HDFC and take the

29
advantage of lower interest rates and better service. Doing this can save you a lot of
money which you have paid for higher interest.

Online Availability of loan: You can apply for an HDFC bank home loan at your
convenience, anytime, anywhere through the online feature. The online home loan
application is a simple 3-step process with the easy document upload, online payment
of fees, and a quick home loan approval

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2.2 INDUSTRY PROFILE

HDFC BANK

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited', with
its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC)
was amongst the first to receive an 'in principle' approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian
Banking Industry in 1994.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over 1416 branches spread over 550 cities across India. All branches are
linked on an online real–time basis. Customers in over 500 locations are also serviced
through Telephone Banking. The Bank also has a network of about over 3382
networked ATMs across these cities.

The promoter of the company HDFC was incepted in 1977 is India's premier housing
finance company and enjoys an impeccable track record in India as well as in
international markets. HDFC has developed significant expertise in retail mortgage
loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.

The shares are listed on the Bombay Stock Exchange Limited and The National
Stock Exchange of India Limited. The Bank's American Depository Shares ( ADS )
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the
Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange.

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On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank
was formally approved by Reserve Bank of India to complete the statutory and
regulatory approval process. As per the scheme of amalgamation, shareholders of
CBOP received 1 share of HDFC Bank for every 29 shares of CBOP.

The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and
net advances of around Rs. 89,000 crore. The balance sheet size of the combined
entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to
HDFC Bank in terms of increased branch network, geographic reach, and customer
base, and a bigger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited

(another new private sector bank promoted by Bennett, Coleman & Co. / Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was
the first merger of two private banks in the New Generation Private Sector Banks. As
per the scheme of amalgamation approved by the shareholders of both banks and the
Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank
for every 5.75 shares of Times Bank.

HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key
business segments:

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

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

Treasury – Within this business, the bank has three main product areas – Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities, and
Equities. The Treasury business is responsible for managing the returns and market
risk on this investment portfolio.

2
HDFC Securities (HSL) and HDB Financial Services (HDBFSL) are its subsidiaries.

Services offered by the company:

Personal Banking

 Accounts & Deposits

 Loans
 Cards
 Forex
 Investments & Insurance

NRI Banking

 Accounts & Deposits

 Remittances
 Investments & Insurance Loans Payment Services

Wholesale Banking

 Corporate
 Small & Medium Enterprises
 Financial Institutions & Trusts
 Government Sector

Achievements/ recognition:–

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit card
as well.

ABOUT BUISNESS

HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the
retail side. The bank has three key business segments.

2
1. WHOLESALE BANKING
The Bank's target market is primarily large, blue-chip manufacturing companies in
the Indian corporate sector and to a lesser extent, small & mid-sized corporates and
agro- based businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance,
trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management services
with vendor and distributor finance for facilitating superior supply chain management
for its corporate customers. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals,
companies from the domestic business houses and prime public sector companies. It
is recognized as a leading provider of cash management and transactional banking
solutions to corporate customers, mutual funds, stock exchange members and banks.
This business focuses on institutional customer such as
 Large corporates including MNICs
 Government bodies
 Emerging corporates
 Business banking/ SMIs
 Infrastructure finance group
Product and service
 Working capital facilities
 Term lending
 Project finance
 Debt capital markets
 Mergers and acquisition
 Trade credit
 Supply chain financing
 Forex and derivatives
 Cash management services
 Wholesale deposit
 Letters of credit and guarantees

3
 Custodial services

3
  Correspondent banking

2. Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With
the liberalization of the financial markets in India, corporates need more
sophisticated risk management information, advice and product structures. These and
fine pricing on various treasury products are provided through the bank's Treasury
team. To comply with statutory reserve requirements, the bank is required to hold
25% of its deposits in government securities. The Treasury business is responsible for
managing the returns and market risk on this investment portfolio.

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With
the liberalization of the financial markets in India, corporates need more sophisticated
risk management information, advice and product structures. These and fine pricing
on various treasury products are provided through the bank's Treasury team. To
comply with statutory reserve requirements, the bank is required to hold 25% of its
deposits in government securities. The Treasury business is responsible for managing
the returns and market risk on this investment portfolio.

The Treasury is the custodian of the Bank’s cash/liquid assets and manages its
investments in securities and other market instruments. It manages the liquidity and
interest rate risks on the balance sheet and is also responsible for meeting statutory
reserve requirements.

Product and services:

 Foreign exchange & derivatives

 Solutions on hedging strategies
 Trade solutions – domestic and cross border
 Bullion
 Debt capital markets
 Equities
 Research – Reports & commentary on markets and currencies
3
  Asset liability management
 Statutory reserve

3. RETAIL BANKING

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-class
service and delivered to customers through the growing branch network, as well as
through alternative delivery channels like ATMs, Phone Banking, Net Banking and
Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank
Plus and the Investment Advisory Services programs have been designed keeping in
mind needs of customers who seek distinct financial solutions, information and
advice on various investment avenues. The Bank also has a wide array of retail loan
products including Auto Loans, Loans against marketable securities, Personal Loans
and Loans for Two-wheelers. It is also a leading provider of Depository Participant
(DP) services for retail customers, providing customers the facility to hold their
investments in electronic form

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card
as well. The Bank launched its credit card business in late 2001. By March 2015, the
bank had a total card base (debit and credit cards) of over 25 million. The Bank is
also one of the leading players in the "merchant acquiring" business with over
235,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments. The Bank is well positioned as a leader in various net based B2C
opportunities including a wide range of internet banking services for Fixed Deposits,
Loans, Bill Payments, etc.

This business caters to

1. Individual borrowers
2. Salaried & professional borrowers
3. Micro & medium sized businesses

3
 4. Extremely small businesses like kirana stores
5. Self-help groups (SHGs)
6. Non-resident Indians (NRIs)

Products and Services

 Auto loans
 Credit and debit cards
 Personal loans
 Home loans
 Gold loans
 Mortgages
 Commercial vehicles finance
 Retail business banking
 Savings account
 Current account
 Fixed and recurring deposits
 Corporate salary accounts
 Construction equipment finance
 Agri and tractor loans
 SHG loans
 Kisan Gold Card
 Distribution of mutual funds, life, general and health insurance
 Healthcare finance
 Offshore loans to NRIs
 NRI deposits
 Small-ticket working capital loans
 Business loans
 Two-wheeler loans
 Loans against securities

HDFC Bank Home Loan:

The Housing Development Finance Corporation (HDFC) is India’s largest private
sector bank by asset and a popular choice among home loan applicants. It offers
varied options to HDFC Bank home loan borrowers along with financial and
technical advice. To know about the choices available and the norms governing
them.The Housing Development Finance Corporation (HDFC) is India’s largest
private sector bank and the world’s 10th largest financial service provider by
market Capitalization as of April 2021. Based out of Mumbai, HDFC was one of
the first banks recognised and approved by the Reserve Bank of India (RBI) in

3
1994. Today, the bank boasts over 6,300 branches, more than 18,500 Automated
Teller Machine (ATM) kiosks, and a presence in 3,200 plus Indian towns and
cities. If you are planning to avail HDFC Bank home loan, here is all you need to
know.
HDFC Bank Home Loan:
Key features
 HDFC offers Customized housing loans for professionals in the field of
agriculture, horticulture, plantation, and dairy
 The home loan interest rates start from 6.7 percent per annum
 The maximum home loan repayment tenure is 30 years
 HDFC provides funding for up to 90 percent of the property cost for
home loans till Rs 30 lakh
 The processing fee is up to 0.50 percent of the loan amount or Rs
3,000, whichever is higher, exclusive of taxes
 Borrowers can avail home loans from Rs 1 lakh to Rs 10 crore
 The home loan process is digital end-to-end
 Customers can choose between Adjustable Rate Home Loan (ARHL)
and TruFixed Loan plans for interest rates
 Customers eligible for Pradhan Mantri Awas Yojana (PMAY) can
avail Credit Linked Subsidy Scheme (CLSS) benefit
 Delayed Equated Monthly Instalment (EMI) payment can attract
an additional interest of up to 23 percent per annum
 An overdraft facility for the amount between Rs 25,000 and Rs 1.25 lakh
is available
 No prepayment charge on home loans availed on floating interest
rates. Prepayment charge of two percent plus taxes applicable on home
loans availed on fixed interest rate
 Female home loan applicants are eligible for a 0.05 percent concession
on the interest rate

2.3 Product of HDFC Bank Home Loans

HDFC Bank offers several types of housing loans to cater to varied requirements

3
  Home loan

This is the primary home loan offered by the bank to purchase a new property, resale
property, or construct a new home. It can be availed by an individual or jointly.

 Home improvement loan

Existing homeowners can avail loans to undertake repair or renovation of their

property. This loan covers elements like restructuring and internal or external
mending. Additionally, it also covers the procedures of painting, waterproofing,
roofing, plumbing, electrical work, tile and floor work, and grills and windows,
among other activities.

 Home extension loan

The bank offers tailor-made home loans for those who wish to add extra space to
their property. As construction of additional space may be costly, the loan aims to
assist existing property owners.

 Top-up loan

The cost of a home can often go north, rendering the already availed home loan
amount insufficient. Hence, existing customers can further go for a top-up loan of up
to Rs 50 lakh.

 Home loan balance transfer

The bank allows borrowers from other banks to transfer their balance loan amount to
HDFC through an easy digital process at no extra cost.

HDFC Bank Home Loan Charges

The bank charges a processing fee of up to 0.50 percent of the loan amount, or Rs
3,000, based on whichever is higher. Also, 18 percent Goods and Services Tax
(GST) is charged on the processing fee. HDFC Bank also facilitates legal or technical
help on home loans to avoid any discrepancies in the future. The applicant seeking
advice is liable to pay fees as demanded by the expert, exclusive of the loan amount

HDFC Bank Home Loan Interest Rates

3
The home loan interest rates at HDFC Bank are broadly divided into two categories,
as mentioned below-

Adjustable Rate Home Loan (ARHL)

The ARHL is directly linked to the bank’s Retail Prime Lending Rate (RPLR);
hence, it is the floating or variable interest rate. The HDFC’s RPLR has been updated
multiple times in 2022 courtesy of fluctuations in the repo rate, which now stands at
5.4 percent after a cumulative hike of 140 basis points. The bank last hiked its RPLR
by 0.25 basis points on August 9, 2022, thus making it 17.45 percent currently. As
the ARHL is subject to change as per market trends throughout the tenure of the
home loan, it is highly recommended to check with a financial advisor before
finalizing the plan.

UPDATED HDFC HOME LOAN INTEREST RATES

LOAN SLAB GENDER HOME LOAN INTEREST

RATES PER ANNUM
Up to Rs.30 lakh Women 8.10-8.60%
Others 8.15-8.65%
Up to Rs.30-75 lakh Women 8.35-8.85%
Others 8.45-8.90%
Up to Rs.75 lakh Women 8.45-8.95%
and above
Others 8.50-9%

TruFixed Loan

In this plan, the bank offers a fixed home loan interest rate for the first two years
post which the loan automatically turns into ARHL module.

The home loan interest rate depends on the following factors-

 Type of interest rate availed

 Benchmark lending rate based on market factors
 Loan To Value (LTV) ratio
 Credit score and financial profile of the applicant
 Repayment tenure
 Location of the property

HDFC Bank Home Loan Eligibility Criteria

3
While availing a home loan from HDFC Bank, the applicant must ensure that they
have a clean credit history, preferably with a credit score of 700 and above. Also, the
applicant must declare any other liabilities they might have to showcase their true
financial position.

The maximum loan repayment tenure is 30 years for a salaried and self-employed
person. However, there are some other factors as well that impact the eligibility
criteria.

ELIGIBILITY CRITERIA FOR HDFC BANK HOME LOAN

FACTORS SALARIED SELF-EMPLOYED

APPLICANT APPLICANT
AGE LIMIT 21-65 years 21-65years
NATIONALITY Indian Indian
MINIMUM INCOME Rs.10,000 per month Rs.2lakh per annum

MAXIMUM LTV FUNDING ELIGIBILITY

HOME LOAN AMOUNT SLAB FUNDING ELIGIBILITY

Up to Rs.30 lakh 90% of the property value
Up to Rs.30-75 lakh 80% of the property value
Up to Rs.75 lakh and above 75% of the property value

Documents required to avail HDFC Bank Home Loan

The following documents will have to be submitted to avail home loan at the
HDFC Bank-

 Identity and residence proof via documents like a valid Passport,

Driving License, Election Commission/Voter ID Card, Pan Card/Form
60, and Aadhaar Card
 Documents of income like salary slips of the last three months, bank
statements of the last six months, and the latest Form 16 or IT
Returns
 A copy of the Allotment Letter or Builder Buyer Agreement and receipts
of payments done in case of a new unit For resale property, title deeds of
previous ownership, receipts of payments, and a copy of the executed sale
agreement

3
 If the borrower is constructing a house, the title deed of the plot, copy of
encumbrance certificate, approved copy of the house plan, and estimated
cost of construction collected from an engineer or architect
 Employment proof or appointment letter if the job period of the borrower
is less than a year
 Passport size photographs of the applicant and co-applicant/s, if any,
along with the home loan application form
 Copy of cheques to process EMIs in favour of HDFC Bank

HDFC Bank is known for its reasonably quick loan approval and disbursal
processes. With rules associated with home loans becoming less stringent,
customers can easily avail them. However, due diligence is recommended while
availing them to have a smooth experience.

3
2.4 Home Loan Procedure

Step 1: Filling the form

Home Loan Procedure starts with filling out the loan application form. Applying for
a Home Loan from HDFC Bank is easy. Following are the basic details which you
will have to fill in the form:

 Name
 Address
 Contact details – phone number and email ID
 Education
 Type of employment – salaried or self-employed
 Income earned

Step 2: Documentation

Once you fill in your basic details, you will have to attach the following documents
for verification:

 Identity proof – PAN card/ Aadhar Card / Voter ID/ Driving license
 Address of proof – can be a copy of any utility bill
 Salary slips of the last 3 months
 Proof of employment
 Bank statements of the last 6 months
 Form 16

Note: If you are a self-employed individual, you need to provide the ITR of the last 2
years and the other income documents.

4
Step 3: Processing and Verification

On submission of the form along with the required documents, the bank starts
processing your Home Loan application. The bank will verify all the documents
provided by you. A bank representative may even visit your workplace or home for
the same.

The next step is checking your creditworthiness as a borrower. The bank conducts an
extensive enquiry into your credit score. Hence it is important that you maintain a
healthy credit history.

If all your documents are in order and you have a satisfactory credit score and report,
the bank will proceed with your loan application.

Step 4: Sanction Letter

On successful approval of your Home Loan application, the bank will send you
a sanction letter. This letter acts as proof that the bank has approved your loan.
All essential details about the loan transaction are enclosed in this letter, such as:

 The loan amount you are eligible for.

 The interest rate offered.
 Whether the interest rate is fixed or variable.
 Tenure of repayment.
 Terms and conditions of repayment.

Read more about fixed or floating interest rates for Home Loans here.

After carefully reviewing all the points mentioned in the sanction letter, you can sign
the letter and send it back to the bank. Only after the bank receives the signed letter
from you, the Home Loan procedure moves to the next step

Step 5: Secure Payment Fee

On signing the sanction letter, you will have to pay a one-time secure payment fee.
The bank may ask you to pay the fee upfront either before or after the loan sanction.

Step 6: Legal and Technical Check

Before the bank disburses the loan amount, it conducts legal and technical checks.
The bank representatives will verify the property you have applied the loan for. They
4
will check if the ownership rights of the property are transparent. The representatives
will also check if the documents submitted, and the proofs provided have any
conflicting information.

During the technical check, the bank representatives will evaluate the actual value of
the property. The status of the property – under construction or resale – will also be
taken into consideration.

If the property is under construction, they will check the construction stage and
quality of the work. Whereas, if the property is a resale one, the bank will check the
age and maintenance of the property. In case of the resale, the bank may also check if
the property has already been mortgaged before.

Step 7: Loan Disbursal

Once the bank is satisfied with the checks conducted, your Home Loan application
will be approved. You will receive a final agreement letter.

Post loan disbursal, you will receive a welcome kit and a detailed housing loan EMI
schedule.

It is important that you check whether you meet the required Home Loan eligibility
criteria before applying for the loan. You can seek professional guidance here to make
a more informed decision.

If you already are a borrower and want to switch your lender, you can opt for the
Home Loan Transfer procedure.

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2.5 Types of HDFC Home Loans Scheme

 There are varied home loans from HDFC to cater to different purposes-

1. Housing Loans

The loan scheme is for the purchase of a flat, bungalow, or row house in a private

developer's approved project. For the acquisition of assets from Development

Authorities such as MHADA, DDA, and others.

For the acquisition of property in Co-operative Housing Societies, Apartment

Owners' Associations, Development Authorities Settlements, or private residences.

For construction on a Development Authority plot or a freehold/leasehold plot.

2. HDFC Reach Home Loan

This housing loan is for the acquisition/construction of a home, purchase of a parcel

of land, and purchase of a shop/office to conduct a business for micro-entrepreneurs

and salaried individuals with insufficient income documents.

3. Home Balance Transfer Scheme

This is for the existing house loans transferred from other banks/NBFCs to HDFCs

at lower interest rates.

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4. HDFC Rural Housing Loan Scheme

This is a scheme for agriculturists, dairy farmers, planters, and

horticulturists looking to buy a new or existing residential property in rural

or metropolitan locations.

For the construction of a residence on a freehold/leasehold site in both urban

and rural locations. For home improvement projects such as flooring, tiling,

painting, interior and external plastering, and so on, in addition to an existing

home.

5. House Renovation Loan Scheme

This is a scheme for home improvement projects such as tiling, flooring,

painting, and plastering.

6. HDFC Plot Loans

This loan is for the acquisition of a plot by direct allotment. Purchase of a resale

plot. Transferring an existing house loan from another bank/NBFC to HDFC at a

cheaper HDFC bank home loan interest rates.

7. Home Extension Loan Scheme

This is a scheme to expand or add space to your existing home.

8. The HDFC Top-Up Loan Scheme

It is an additional loan granted on top of the existing home loan to satisfy the

borrower's personal and professional needs.

9. The PMAY

4
It is for the purchase/construction/improvement/extension of a house for

economically weaker sections of society, low-income groups, and middle-income

groups, with a maximum interest subsidy of Rs 2.67 lakh.

If you meet the eligibility criteria, then you can visit the nearest HDFC Bank and

apply for the Pradhan Mantri Awas Yojana (PMAY) scheme. PMAY is a

government launched home loan scheme which aims to provide homes to all the

people who are economically weak. The government aims to fulfil the mission by

2022. We will have a look at what the HDFC PMAY scheme offers in detail.

HDFC PMAY eligibility

No one from your family including you must own a pucca house in your name or in

the name of any member of your family.

If you are married, then you can apply for the PMAY scheme where both you

and your spouse will be jointly eligible for a single subsidy.

You must not have availed any other Government housing scheme or any other

benefits applicable under the PMAY scheme.

PMAY is loaded with features and benefits as broadly outlined below:

 The interest subsidy rate provided by the scheme is up to 6.5 % on

housing loan to all beneficiaries taking loans with a tenure of up to

20 years

 Interest rate subsidy, however, varies basis income slabs

 Up to 6 lakh per annum - Credit-linked subsidy of 6.5 per cent will

be available for loan amounts up to Rs 6 lakh

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  Up to 12 lakh per annum - People earning up to Rs 12 lakh per

annum will get 4 per cent interest subsidy on a loan amount of Rs 9

lakh

 Up to 18 lakh per annum - People earning up to Rs 18 lakh per annum

income category will get a 3 per cent subsidy on a loan amount of Rs

12 lakh

 Any additional loan beyond the subsidized loan amount will be at

a nonsubsidised rate

 Under the PMAY scheme, differently able and senior citizens can get the

preference of having a house on the ground floor

 Houses will be constructed using sustainable and eco-friendly

technologies

The PMAY benefits can be availed if you wish to acquire a new house from the

developer or the builder and also for buying a house on resale. You may even take a

loan for the construction of a house. Moreover, it is interesting to know that PMAY

also applies for upgrading a ‘kutcha’ house to a ‘pucca’ house under the Credit

Linked Subsidy Scheme (CLSS) component.

4
 CHAPTER- 3 :

RESEARCH & METHODOLOGY

3.1. OBJECTIVES:-

Identification of the problem

 The study was mainly conducted to understand the concept of home

loan scheme and the eligibility criteria of the customers.
 The study is done to understand the documents involved in the home loan
scheme and the repayment methodology adopted by various banks and
the HFC’s (Housing Finance Corporations).
 The innovative home loans schemes and the risk capturing mechanism
adopted by the HFIs and the future of the home loan segment has been
undertaken as a part of this study.
 To study the satisfaction level of customers about home loan.
 To study the problems faced by customers in obtaining the home loan.
 To analyze the home loan scheme by HDFC BANK.
 To know about the HDFC home loan and its product.

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3.2. HYPOTHESIS

The hypothesis is a predictive statement that relates independent variable to a

dependent variable and this is open to testing. This hypothesis is then proved or
disproved by using the information from the sample. The hypotheses formulated for
testing are as follows:-

1. HI-Schemes provided by public sector banks are more worthful.

HO-Schemes provided by public sector banks are not so worthful.

2. HI-Interest rates are comparatively lower in case of public sector banks. HO-
Interest rates are comparatively not lower in case of public sector banks

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3.3. SCOPE OF THE STUDY

Scope of the study is limited to Private sector banks and Public sector banks. While
the foreign bank is excluded from the study as the policies and regulations of foreign
banks are different from the other Indian banks. It is used to get first-hand knowledge
about the home loans facilities of Private and Public banks in India. The scope of the
present study is to known about the procedures of home loan, the problems faced by
the customers while taking loans from either public or private banks, to known about
the awareness of the home loan facility in Indian.

The study of this kind will help the respondents to get the ideas about the various
problems and the ways to deal with the problems that arise while taking a home loan.

4
3.4. LIMITATONS:

The study was restricted in understanding the home loan as concept so the practical
implications of the study have been difficult.
The innovative features of the various HFIs as part of their home loan schemes but
is not a comprehensive study of their home loan schemes.
The Take Over home loans of high interest rate for low interest rates and their
inherent risks on the bank’s lending profile has not been undertaken in the
study.

The mortgage home loans and its scope on the home loan lending portfolio were not
studied as this would lead into a relatively new kind of home loan segment.

5
3.5. SAMPLING TECHNIQUE

Sampling is one of the most important factors which determines the accuracy of
research. There are lots of techniques which helps to gather samples depending upon
the need and situation.

BASIC TERMINOLOGIES:

 POPULATION: Number of elements in the population is the size

of population
 SAMPLE: Subset of the population
 SAMPLING: Process of selecting a sample is known as sampling

PROBABILITY SAMPLING:

This sampling technique uses randomization to make sure that every element of the
population gets an equal chance to be part of the selected sample its alternatively
known as random sampling.

 SIMPLE RANDOM SAMPLING: Every element has an equal chance of

getting selected to be the part of sample it is used when we don’t have
any prior information about the target population.

5
3.6. SAMPLE SIZE

A series of questions with choice of answers is used to derive the approximate

estimation of selected variations from consumers. It is an efficient way of obtaining
large amounts of information from the required sample of people. With this, the data
can be collected quickly as the samples only have to respond to the question which
have been asked.

Only the required amount of questions is asked in order to obtain quantitative data
(e.g. count of the number of ‘yes’ and ‘no’) allowing statistical analysis of the
responses.

5
3.7. METHODS USED FOR DATA COLLECTION

Collection of the data was necessary in order to get all the information which was
required for the study. Data are the facts and statistics collected together for
reference.

There are two types of data:

1. PRIMARY DATA:
This type of information is obtained directly from the first hand sources
.i.e., the sources of origin which means where the data generated and they
are not subjected to any manipulation.
SOURCES:
 Questionnaires
 Discussions
 Observations

2. SECONDARY DATA:
This data may either be an already published for the others to use and is
commonly known as the second hand data .i.e. the source of the data is collected
by one person and is used by another.
SOURCES:
 Internet
 Reports
 Newspapers
 Reports

5
 CHAPTER 4
4.1. REVIEW OF LITERATURE

Rao K.N. (2006) in “Housing Finance –

A Global Perspective” states that there has been a remarkable growth of Housing
Loans in India since last more than a half decade. He has also stated that the factors
which have been contributing to this growth are reduced rate of interest, easy EMIs ,
less formalities and also some tax benefits on interest payments as well as repayment
of principal amount of loan. As other authors, Mr. Rao also in the similar view that
LICHFL and HDFC both are the key market players in Home Loans who have
initiated to lends Loans for a longer period of 20 or more years, and also they
usually sanction loans up to 85% of the total amount of security.

Chaubey M. (2009) in “Housing Finance in India –

Problems and Prospectus” states that according to his study, it was revealed that the
customers of home loans selected to take loan due to low interest rate firstly, easy
installment schemes secondly, simple procedure thirdly and so on. About 92% of the
Home Loan customers opted for floating rate of interest whereas about 60% of the
total home loan customers opted for more than 15 years and about 70% accepted that
the approval and disbursement of loan is generally delayed as per its time schedule. It
was also suggested that the details of the loan accounts of the customers must be
available online for more transparency in dealing and EMIs should be available not
only monthly but also quarterly and half yearly.

Kumar N. & Dr. Gangal V. K. (2011) –

in “Customer Satisfaction in new generation banks in case study of HDFC Bank” say
that, for every bank to retain in this competitive world, customer’s satisfaction with
speedy and quality service, is the most essential factor to take case of but, they also
say that the products and services offered by Indian Banks are not much diversified
which creates the need for adopting the customer retention strategies to enhance
customer satisfaction and retain them with banks.

Deb B. C. et al (2011) in “Importance of Housing Finance Companies in

Development of Financial Markets of Bangladesh” state that the economic

5
development of a country can be boosted by the existence of Money Market. The
Housing Finance Companies are not direct participants of Money Market, but they
can take active participation in Money Market by issuing various Money Market
Instruments like collecting short term loans for securitization of mortgage loan. In
this paper, the study of the authors shows that a well-built and pulsating Capital
Market cannot be sustained in a long run without competent Money Market. But, it
can be seen that this paper has adopted the word Financial Market, whereas it has
emphasized more on Money Market and also it less emphases on Housing
Finance.

Rani S (2011) in “Growth and Development of Housing Finance in India: Post

liberalization period” states that National Housing Policy gave a thrust to the concept
of Housing Finance by establishing the National Housing Bank on 9th July, 1988
under the National Housing Bank Act, 1987 which became the regulatory body for
the Housing Finance in India and also for providing funds and other assistance to the
Housing Finance Institutions. With the help of their study they concluded that HDFC
has been the on the top of the list of housing finance with 37% market share
followed by SBI thru HUDCO with 16% market share and LICHFL with 13%
market share.

Chaudhary R. and Juujhua Y. (2011) in “Customer Perception and satisfaction

towards Home Loans” where they have studied the customer satisfaction level and
their perception towards Bhagat t Urban Co – op. Bank limited and with the study,
they have revealed that people are more satisfied with this bank in aforesaid area
in the paper due to the faith of customers for the bank, cheaper rates of interest and
convenient repayable EMIs. They have also suggested that to get success in the
market of housing loan, the bank has to come up with offer of different services to
different groups of customers.

5
 CHAPTER 5
DATA ANALYSIS, INTERPRETATION AND PRESENTATION

The analysis is based on the responses given by customers through

questionnaire.

1. AGE GROUP OF SURVEYED RESPONDENTS

TABLE

AGE GROUP NO OF RESPONDENT

Below 25 years 49
Between 25 to 35 years 23
Between 35 to 45 years 22
Upto 50 or above 6

CHART

INTERPRETATION: From the above chart we find that 49% of the respondents are
below 25 years age group, 23% fall in the age group of 25 – 35years and 22% fall in
the age group of 35 – 45years. 6% respondents age are 50years or above.

5
2. OCCUPATION OF THE RESPONDENTS

TABLE

CUSTOMER PROFILE NO. OF RESPONDENTS

Student 41
Professionals 18
Self-employed 14
Salaried 25
Farmer 1
Business 1

INTERPRETATION: The above survey shows the most of the respondent are
students with percentage of 41, The percentage for professional are 18%. The self-
employed are having 14% and 25 for salaried person. For farmer and Business its 1%.

5
 3. ANNUAL HOUSEHOLD INCOME GROUP OF
THE RESPONDENTS

TABLE

INCOME GROUP NO.OF RESPONDENTS

Below 2 lakhs 1.1
Below 5 lakhs 42.9
5 – 10 lakhs 15.3
10 – 15 lakhs 25.5
15 – 20 lakhs 10.2
20 – 25 lakhs and above 5.1

INTERPRETATION: The lowest income group of people are Below 2 lakh with
the percentage of 1%, From below 5 lakh there are 42.9%. Within the range of 5-
10 lakh there are 15.3% of people. From 10-15 lakh there are 25.5% and from 15-20
lakh there are 10.2% of respondent. The highest income group of people are above
20 lakhs with the percentage of 5.1%.

5
4. PERCENTAGE OF RESPONDENTS OWNING HOME

TABLE

RESPONDENTS PERCENTAGE %
OWNING HOME 67.7
NOT OWNING HOME 32.3

INTERPRETATION: The above chart shows that, most of the respondents own a
home.i.e. 67.7% and other 32.3% respondents do not own a home.

5
 5. PERCENTAGE OF RESPONDENTS OWNING
HOME THROUGH FINANCING
TABLE
RESPONDENTS PERCENTAGE%
Get it financed 61.6
Not financed 38.4

INTERPRETATION: The above chart shows that, 61.6% of the respondents get
their homes through financing and other 38.4% of the respondents do not finance.

6
 6. CHOICE OF BANKS FOR FINANCING OF THE
RESPONDENTS (WHO DON’T FINANCED)
TABLE
BANKS PERCENTAGE%
ICICI 14.7
HDFC 53.7
PNB 5.3
SBI 20
OTHER 6.3

INTERPRETATION: The above chart shows that, majority of the respondents

have chosen HDFC bank for financing .i.e. 53.7% and there after , SBI bank .i.e.
20%.
14.7% of the respondent’s choice ICICI bank and PNB has the least percentage.i.e.
5.3%. other 6.3% of the respondent’s choices are DENA BANK, YES BANK,
ETC,..

6
7. RESPONDENTS SELECTED FINANCED BANKS

TABLE

BANKS PERCENTAGE%
Standard Chartered Bank 1.2
SBI 29.1
ICICI 14
HDFC 45.3
OTHER 10.4

INTERPRETATION: The above survey chart shows that, most of the respondent
get their home financed with HDFC bank.i.e. 45.3% and the second most percentage
of 29.1% of SBI bank.
This survey shows that ICICI banks have the percentage of 14% and the least choice
of percentage.i.e. Standard Chartered Bank only 1.2%. Other 10.4% of respondents
had financed with PNB BANK, DENA BANK.

6
8. REASONS OF FINANCING

TABLE

REASONS PERCENTAGE%
Non availability of funds 35.7
Reluctance to pay cash in on go 17.3
Tax benefit 33.7
other 11.2

INTERPRETATION: The above chart shows that, the highest reasons for financing
among the respondents are Non availability of funds.i.e. 35.7% and second highest
i.e. 33.7% for Tax benefit. 17.3% of respondent’s reason for financing is Reluctance
to pay cash in go.11.2% of respondents has their own different reasons for financing.

6
9. THINGS THAT ATTRACT WHILE TAKING HOME LOAN

TABLE

VARIOUS BENEFIT PERCENTAGE%

Interest rates 52
Schemes 13.3
Payback period 18.4
Service provided 10.2
others 6.1

INTERPRETATION: The above chart shows the percentage of things that attracts
to respondents while taking Home loan in which, benefits in ‘Interest Rates’ holds
highest percentage rate.i.e. 52% and second highest percentage rate .i.e. 18.4% for
Pay Back Period.
Benefits of various ‘Schemes’ and ‘Service Provided’ holds 13.3% and 10.2%
respectively.6.1% respondent’s has their other reasons.

6
 10. HOW MUCH LOAN AMOUNT RESPONDENTS TOOK?

TABLE

LOAN AMOUNT PERCENTAGE%

Below 10 lakhs 38.5
10 to 20 lakhs 29.2
20 to 30 lakhs 18.8
30 to 40 lakhs 8.3
40 lakhs and above 4.2
others 1

INTERPRETATION: Majority of the respondents have taken loan Below 10 lakhs

.ie. 38.5% and 29.2% of majority has taken between 10 to 20 lakhs.18.8% of
the respondents has taken loan amount between 20 to 30 lakhs. Only 8.3% of
the respondents has taken loan amount between 30 to 40 lakhs.
Very least number of respondents has taken loan amount of 40 lakhs and above .i.e.
4.2%.

6
11. WHAT WAS THE INTEREST RATES ?

TABLE

INTEREST RATE% PERCENTAGE%

7 to 10% 68.8
10 to 15% 21.5
15 to 20% 8.6
20% or above 1.1

INTERPRETATION: The above survey chart shows, 68% of the respondents have
taken loan with the interest rate of 7 to 10%. From interest rate of 10 to 15%, 21.5%
respondents have taken the home loan. 15 to 20 % there are only 8.6% of
respondent and above 20% there are only 1.1% of respondent.

6
 12. PROBLEMS FACED BY RESPONDENTS WHILE TAKING

HOME LOAN

TABLE

PROBLEMS PERCENTAGE%
Non co-operation 21.3
Lack of knowledge 57.4
Procedure delays 18.1
No 3.2

INTERPRETATION: As the above survey shows the 57.4% of respondent face the

problem of ‘lack of knowledge’. There are 21% Respondent who found the

sanctioned of loan to be delay. 18.1% of respondents feels Non co-operation from

bank. 3.2% of the respondent did not face any problem while getting home loan.

6
 13. DID RESPONDENTS AVAILED THE BENEFITS OF ‘AWAS YOJANA’?

TABLE

DID / DID NOT PRECENTAGE%

Yes 26.3
No 42.1
Bank don’t have 18.9
Bank didn’t provide you the 12.6
information about it

INTERPRETATION: The above chart shows the awareness of ‘Awas yojana’ 26.3%

of respondents are aware of this and 42.1% of respondents are not aware. There are

18.9% of the banks don’t have this scheme and 12.6%. Bank didn’t provide any

information about it.

6
 14. ARE RESPONDENTS SATISFIED WITH THE SERVICES

PROVIDED?

TABLE

SATISFACTION PERCENTAGE%
Satisfied 30.9
Highly satisfied 19.1
Neutral 56.4
Dis-satisfied 14.9
Highly dis-satisfied 5.3

INTERPRETATION: Majority of respondents have Neutral response i.e. 56.4%.

The satisfied respondents are 30.9% and the highly satisfied respondents are 19.1%.

There are 14.9% of respondents who are not satisfied with services and 5.3% are

highly de-satisfied.

6
 15. SOURCES OF INFORMATION ABOUT HOME LOAN SCHEMES

TABLE

SOURCES PERCENTAGE%
Newspaper 21.1
Magazines 11.6
Hoardings / Banners / Advertisement 34.7
Word of mouth 28.4
others

INTERPRETATION: As the respondents has been aware of Home loan scheme by

Hoarding/ Banner/ Advertisement are 34.7% and from the word of mouth is 28.4%.
21.1% from Newspaper, from Magazines 11.6%. 1% of the respondents are those who
have other sources of information.

7
 16. IF THE INTEREST RATE IS HIGH FOR PERSONAL LOANS,

RESPONDENTS WILL GO FOR IT OR NOT?

TABLE

DID OR DID NOT PERCENTAGE%

Yes 37.5
No 68.8

INTERPRETATION: This survey shows that there are 37.5% of respondents who

will go for the personal loans even if the interest is high and 68.8% of respondents

will not go for the personal loans when the interest is high.

7
17. IF THE INTEREST RATE IS HIGH FOR THE ‘HOME LOAN’,

DID RESPONDENTS GO FOR IT OR NOT?

TABLE

DID OR DID NOT PERCENTAGE%

Yes 38.3
No 61.7

INTERPRETATION: The survey state that majority of respondents .i.e.61.7% are

not willing to go for ‘Home loans’ if the interest rates are High on home loans. Only

38.3% of the respondents will go for the home loans even if the interest rates are high.

7
18. PROBLEMS FACED BY RESPONDENTS AFTER SANCTION

OF LOAN

TABLE

PROBLEMS PERCENTAGE%
Yes 53.1
No 44.8
Other 2.1

INTERPRETATION: As the above pie chart show there are there are 53.1% of

respondents are who has faced the problem after sanction of loan and 44.8% respondent

haven’t faced any problem. 2.1% respondents feels neutral.

7
19. SUGGESTIONS GIVEN BY THE RSPONDENTS

TABLE

SUGGESTIONS PERCENTAGE%
Flexibility in interest rate 35.1
Reduction in Documentation 17.5
More schemes like ‘Pradhan Mantri 27.8
Awas Yojana’
Loan facilities for chawl houses 13.4
Loan facilities in case of KDMC 5.2
No 1

INTERPRETATION: The improvement can be done in home loan schemes by

change in flexibility in interest rate 35.1% sample population agree with.17.5% agree

with the reduction in documentation, 27.8% agree with more scheme like’ Pradhan

mantri Awas Yojana’ , 13.4% agree with improvement in loan facilities in chawl

houses.5.2% agree in loan facilities in case of KDMC. 1% agree with No changes

should be made.

7
20. WHICH BANK IS BEST FOR HOME LOANS,

AS PER RESPONDENTS

TABLE

BANKS PERCENTAGE%
HDFC 53.1
SBI 21.4
ICICI 15.3
Sites like Navi, Paisa Bazaar, etc. 5.1
other 3

INTERPRETATION: The above pie chart shows the best banks for home loans,

53.1% is for HDFC and SBI has 21.4%, ICICI has 15.3%. 5.1% is for other site like

Navi, Paisa Bazzar.1% for Kotak Mahindra Bank, 1% for NO and for 1% for PNB.

7
CHAPTER 6: CONCLUSIONS AND SUGGESTIONS

6.1. FINDINGS OF THE STUDY

1. HDFC LTD having good brand image in the minds of the customers.

2. Majority of the people got loans from HDFC LTD only.

3. Mostly of the Customers are not aware of the Home loan.

4. Some of the customers feels the interest rates are high.

5. Some of the customers are not having the good faith in site like Navi,

Paise bazaar.

6. Customer directly visit HDFC bank to apply for home loan.

7. The customer of HDFC bank find benefits through HDFC home

loan, product and service.

8. Through the research we can say HDFC bank providing good service to

their customers.

7
 6.2.RECOMMEDATION AND SUGGESTION

1. To increase their customers, the HDFC Bank should provide specialized

services, such as proper guidance and regarding the processing of loans to

their customers, especially for the customers who are illiterate.

2. To satisfy their customers and for good dealings in future, the HDFC

Bank should make prompt disbursement of loan amount to the customers

so that they can buy or construct their dream home as soon as possible.

3. The HDFC Bank should use easy procedure, or say, less lengthy procedure

for the sanctioning of loan to the customer. By doing less legal formalities and

less time consuming procedure will be helpful in attracting more customers.

4. The bank which is having lower interest rates, have the maximum clients

for loans. The customers seek less interest rate which can lower the cost of

the house. So, Banks should try to lower the interest rates.

5. Some customers are not able to get amount of loan needed to them

because the HDFC Bank provide loan according to the repaying capacity

of the customer and his/her eligibility. The Bank should soften their norms

regarding the loan amount.

6. There are several ways to attract the customers, By creating awareness

about product and service to the customers. Reducing the mortality and

administration charges. They should reduce the interest rate on home loan

product and service chargers.

7. The company should act according to the present competition and

customers need. They need to identify the potential customer.

7
 6.3 CONCULSION

1. In my study we came to know that many peoples are interested to take a

home loan from HDFC Bank to construct their dream homes as soon as

possible.

2. Compare to personal loans and other loans home loans have long period.

So people are confused take home loans.

3. As the interest rate of the HDFC bank is high people are willing to take the

home loans from HDFC bank due to certain reasons.

4. The interest rate of HDFC bank is some. what higher than the other banks.

Theloan sanction process is low when compare to other banks.

The research has been carried out in a systematic way to reach exact result. The

research and finding are based on the objectives. However, the study had some

limitations also such as lack of time. lack of data, non-response. reluctant attitude and

illiteracy of respondents, which posed problems in carrying out the research. To

make accurate conclusion for the HDFC Bank proper attention was made to carry out

the research in a proper way. Which may be beneficial to the other banks to enhance

the customer based.

7
CHAPTER 7: BIBLIOGRAPHY

https://www.sites.google.com/site/mbawithfun/home/mba-projects/mba-projects/a-

project-report-on-study-on-home-loans-in-icici-bank

https://www.slideshare.net/Dharmikpatel7992/homeloans-24275187

https://www.paisabazaar.com/home-loan/10-best-banks-in-india-offering-low-

interest-home-loan/

https://navi.com/blog/home-loan-interest-rates/

https://www.fincash.com/l/loan/top-home-loan-schemes

https://www.99acres.com/articles/all-about-hdfc-bank-home-loan.html

https://www.hdfc.com/housing-loans/pradhan-mantri-awas-yojana-clss

https://www.hdfcbank.com/personal/resources/learning-centre/borrow/how-to-apply-

for-pradhan-mantri-awas-

yojana#:~:text=You%20can%20apply%20for%20the,Pradhan%20Mantri%20Awas%

20Yojana%20scheme%3F

https://m.economictimes.com/industry/banking/finance/hdfc-sanctions-rs-47000-cr-

home-loans-to-over-2-lakh-homebuyers-under-governments-

clss/amp_articleshow/77961583.cms

https://www.hdfcbank.com/personal/resources/learning-centre/borrow/home-loan-

procedure

https://groww.in/loans/hdfc-home-loan-interest-rates

https://v.hdfcbank.com/amp/personal/borrow/popular-loans/home-loan/index.html

7
 QUESTIONNAIRE:

1. Name:

2. Age:

a. Below 25 years

b. Between 25 to 35 years

c. Between 35 to 45 years

d. Up to 50 or above

3. Occupation of the respondents

a. Student

b. Professionals

c. Self-employed

d. Salaried

e. Farmer

f. Business

4. Which income group do you belong?

a. Below 5 lakhs

b. 5-10 lakhs

c. 10-15 lakhs

d. 15-20 lakhs

e. 20 lakhs and above

f. Below 2 lakhs

5. Do you own home?

a. Yes

b. No

6. Have you get financed?

8
 a. Yes

b. No

7. If no, which bank you will choose to get financed ?

a. IDFC

b. PNB

c. SBI

d. Other

8. If yes, from which of the following banks / companies you have got it financed ?

a. Standard charted bank.

b. SBI

c. ICICI

d. HDFC

e. Other

9. What is the reason for getting it financed

a. Non availability of funds

b. Reluctance to pay cash in on go

c. Tax benefit

d. Other

10. While taking loan which things attract you the most

a. Interest rates

b. Schemes

c. Payback period

d. Service provided

e. Others

11. How much loan amount you took?

8
 a. Below 10 lakhs

b. 10 to 20 lakhs

c. 20 to 30 lakhs

d. 30 to 40 lakhs

e. 40 lakhs and above

f. Others

12. What was the interest rate?

a. 7 to 10%

b. 10 to 15%

c. 15 to 20%

d. 20 or above

13. What problems did you face while home loans?

a. Non co-operating

b. Lack of knowledge

c. Procedure delays

d. No

14. Have you availed the benefits of ‘Awas yojana’ schemes?

a. Yes

b. NO

c. Bank don’t have

d. Bank didn’t provide you the information about it

15. Are you satisfied with the services provide l

a. Satisfied

b. Highly satisfied

c. Neutral

8
 d. Dis-satisfied

e. Highly dis-satisfied

16. From where have you got information about home loans scheme?

a. Newspaper

b. Magazines

c. Hoardings /banners /advertisement

d. Word of mouth

e. Others

17. Even if interest rate is high for the personal loans, will you go for it?

a. Yes

b. No

18. Even if the interest rate is high for the home loans will you go for it?

a. Yes

b. No

19. Did you face any problem after sanction of loan?

a. Yes

b. No

c. Other

20. What suggestions do you want to give for improvements in home loan schemes ?

a. Flexibility in interest rate

b. Reduction in documentation

c. More schemes like ‘Pradhan Mantri awas yojana’

d. Loan facilities for chawl houses

e. Loan facilities in case of KDMC

f. No

8
21. As per you, which bank is best for home loans ?

a. HDFC

b. SBI

c. ICICI

d. Sites like Navi, paisa Bazar ,etc.

e. Other

84