Introduction

Housing Development Finance Corporation Limited or HDFC is an Indian

financial conglomerate based in Mumbai, India. It is a major player for housing
finance in India. It also has a presence in banking, life and general insurance, asset
management, venture capital and education loans .
HDFC has come a long way since its inception in 1977, overcoming numerous
obstacles in the evolution from a fledging start-up to Indias leading provider of
Housing Finance. It is the brain child of Late Mr.H.T Parekh.
It was founded in 1977 as the first specialised Mortgage Company in India. HDFC
was promoted by the Industrial Credit and Investment Corporation of India.
Hasmukhbhai Parekh played a key role in the foundation of this company.
In 2000, HDFC Asset Management Company launched its mutual fund schemes. In
the same year, IRDA granted registration to HDFC Standard Life Insurance, as the
first private sector life insurance company in India.

Objectives

Primary Objective: To enhance the residential housing stock in the country

through the provision of Housing Finance in a systematic and professional
manner, and to promote home ownership.

Aim: Increase the flow of resources to the housing sector by integrating the
Housing Finance sector with the overall domestic financial markets.

Growth strategies

Increase the Return On Equity each year in order to maximise shareholder

value.

Consistently grow the loan book.

Maintain Gross Non-Performing Assets (NPAs)

Maintain a low cost to income ratio by improving operational efficiency.

Leadership and people

Stable and experienced senior management team with an average tenor of

over 30 years.

Trained and experienced workforce.

Products and Services

Mortgages
The company provides housing finance to individuals and corporates for
purchase/construction of residential houses.It is one of the largest providers of
housing loans in India. In its Annual Report for financial year 2012-13, the company
has disclosed that it has disbursed approx. INR 456,000 crores in 35 years of its
existence for a total of 4.4 million housing units.
The average loan profile amounts to INR 2.18 million (US$ 35,160) which lasts for
about 13 years and covers approx. 65% of actual property value.

Life Insurance
The company has been providing life insurance since the year 2000, through its
subsidiary HDFC Standard Life Insurance company Limited. It offers 33 individual
products and 8 group products. It uses HDFC group network to cross sell by offering
customized products. It operates out of 451 offices across India serving over 965
locations. It had a market share of 4.6% of life insurance business in India as on 30
September 2013. HDFC Life has over 15,000 employees.

General Insurance
The company offers general insurance products such as:

Motor, health, travel, home and personal accident in the retail segment which
accounts for 47% of its total business and

Property, marine, aviation and liability insurance in the corporate segment

Mutual Funds
HDFC provides mutual fund services through its subsidiary HDFC Asset
Management Company Limited. The average Assets under Management (AUM) of
HDFC Mutual Fund for the quarter Jul-13 to Sep-13 was INR 1.03 trillion.

Presence & Distribution network

Extensive distribution network of 378 interconnected offices (including 103

offices of HDFC Sales) with outreach programs to several towns and cities all
over India.

3 representative offices in Dubai, London and Singapore offering Home Loan

products to Non-Resident Indians and Persons of Indian Origin.

Enhanced distribution through HDFC Sales, HDFC Bank and third party Direct
Selling Associates.

Major subsidiaries and associates

HDFCs key associate and subsidiary companies include HDFC Bank Limited, HDFC
Standard Life Insurance Company Limited, HDFC ERGO General Insurance
Company Limited, HDFC Asset Management Company Limited, GRUH Finance
Limited, HDFC Venture Capital Limited and Credila Financial Services Private
Limited.

Organization & Management

HDFC is a professionally managed organization with a board of Directors consisting
of eminent persons, professionals who represent various fields including finance,
taxation, construction and urban policy development. The board primarily focuses on
strategy formulation, policy and control, designed to deliver increasing value to
stakeholders.
As on 31 March 2013, the company had 1,833 employees, out of which 22% were
women.

Centre for Housing Finance: HDFCs Training Centre is located in Lonavla and it
was established in 1989. It is mainly used for training programmes, workshops,
conferences and strategy meetings.

Objectives of study

To know about the HDFC home loan and its products.

To have the first hand information on loan procedure, sanctioning and

disbursement in HDFC ltd.

To compare the performance of HDFC with other market players.

To study about the financial position for the financial year 2009-10 in
comparison with position in financial year 2008-09.

Important terms related to Home loans

Margin
When you take a loan, the home loan company will not put up the entire
amount. It will only put up around 80% to 90% of the cost of your home. You
will have to put in the balance 20% or 10%. Even if they go up to 95%, you
will still have to put in the balance 5%.This amount is called the down
payment or the margin.

Types of Home Loan

Adjustable Rate Loan
A Home Loan under the Adjustable Rate is linked to HDFC's Retail Prime
Lending Rate (RPLR). If there is a change in our RPLR, the interest rate on
your loan will be revised once in three months depending on the date of your
first disbursement with or without a change in EMI. If the interest rate
increases, the interest component in an EMI will increase and the principal
component will reduce resulting usually in an extension of term of the loan,
and vice versa when the interest rate decreases.
TRUFIXED PLUS HOME LOAN 2 YEAR FIXED RATE VARIANT
A TruFixed plus Home Loan offers you a part fixed rate term and a part
adjustable rate term. Under this variant of the TruFixed Plus Home Loan, you
can avail of a fixed rate for a maximum term of 2 years, post which the loan
will automatically convert to an adjustable rate, adding up to a total term of 20
years.
TRUFIXED PLUS HOME LOAN 3 YEAR FIXED RATE VARIANT

A TruFixed plus Home Loan offers you a part fixed rate term and a part
adjustable rate term. Under this variant of the TruFixed Plus Home Loan, you
can avail of a fixed rate for a maximum term of 3 years, post which the loan
will automatically convert to an adjustable rate, adding up to a total term of 20
years.

Interest Rate
Interest rate charged to the customer by the bank depends on 2 factors
(i)
RPLR
(ii) Spread

RPLR
RPLR is the benchmark rate prescribed by any lender for its retail loan based
on cost of funds, operating expenses, minimum margins to cover regulatory
requirements of provisioning/capital charge and profit margins.
Spread
Spread depends upon factors such as point of availment of the loan, types of
loan and products being financed, the marginal cost of funds and the tenure of
the loan.The spread is worked out for all the borrowers taking into
consideration the factors mentioned at the time of sanctioning the loan
The changes in interest rate due to RPLR are automatically updated in
customers account while if there are any changes in interest rate due to
spread than it is borrowers responsibility to keep himself informed
about the revision.

Repayment options
Loan is repaid in EMI comprising principal and interest. EMI commences from
the first of the month following the month in which the disbursement of the
loan has been completed. Due date of payment of first EMI is the 5thday of
the month following such month. Interest is paid on the portion of the loan
disbursed which is called Pre-EMI. Pre-EMI interest is payable every month
from the date of each disbursement up to the date of the commencement of
EMI. Customer may opt to pay the EMIs by direct deduction from
their monthly salary. They can also issue post dated cheques and can also
issue standing instruction to their bankers or can pay the installment at any of
the HDFC collection centers.
Following are the repayment option features being offered by HDFC
to their customers:

Step up Repayment Facility (SURF): This scheme help young executive to

take a bigger loan today based on an increase in their future income, this will
help executives to buy a bigger home today. In this EMIs of the customer
increases in future.
Flexible Loan Installment Plan (FLIP): Often customers, parents and their
children wish to purchase property together. The parents are near to retirement
and their children just started their work. This option help customers to combine
their income and take a long term home loan wherein the installment reduces
after the retirement.
Tranching: To help the customers save their interest, HDFC introduced a
special facility known as Tranching. In this customer has the option to start their
EMIs even before the full disbursement of the loan. By this facility customer
can repays their loan faster.

Disbursement
HDFC disbursed the loan after the property has been technically appraised;
all legal documentation has been completed. The loan will be disbursed in full
or in suitable installments (normally not exceeding three in numbers) taking
into account the requirements of the funds and progress of construction.

EMI
An EMI is the amount of money you will have to pay every month in order
to repay your loan. An EMI is an unequal combination of your loan amount
(principal) and the rate of interest. The EMI remains constant throughout the
repayment period. Let's say you have a five-year loan with an EMI of Rs 4,400.
You will have to pay this amount for the next 60 months to the home loan
company. To arrive at the EMI, the home loan financier will look at

The principal (the actual loan amount).

The repayment period (the number of years you will take to repay the loan).

The rate of interest.

How the rate of interest is computed (monthly reducing, quarterly reducing or

annual reducing basis).

 PEMI
When you buy a home that is under construction, the home loan companywill
not pay the entire amount to the builder. Payment will be made in stages. As
construction is completed, payment is released. This is known as partial
disbursement. You start paying your EMIs only after the final disbursement. Till
then you pay the home loan company a rate of interest on the amount partially
disbursed. This interest is called pre-EMI. If your home loan is going to cost
you 8%, you will be charged 8% simple interest on payments made till date.
This will go on till the final payment (disbursement) is made and your EMIs
start. So the longer your builder takes to complete construction, the more you
end up paying.

PDCS
Post-dated cheques are dated ahead of time and cannot be processed till the
date indicated. Generally, the home loan company will ask for a year's supply
of cheques or maybe even two or three years. At the end, you will have to
replenish the supply for the following years. These cheques will be addressed
to the home loan company, signed by you and will state the exact EMI to be
paid.

ECS
ECS is an electronic mode of payment / receipt for transactions that are
repetitive and periodic in nature. ECS is used by institutions for bulk collection
of amounts towards loan instalment repayments essentially; ECS facilitates
bulk transfer of monies from one bank account too many bank accounts or
vice versa.

Prepayment
Prepayment refers to payment of the borrowed loan before the maturity.
Prepayment can be partial or full.

 Conversion
Whenever there is a change in spread the customer can get his interest rate
converted to the new rate by paying conversion fees.

Products and Services

HDFC offers wide range of products to its customers for
meeting their requirements:

New home loan

Loans for purchase of:

o A flat, row house, bungalow from private developers in approved
projects.
o Properties from Development Authorities such as DDA, MHADA etc.

Resale

Loans for purchase of:

o Properties in an existing Co-operative Housing Society or Apartment
Owners' Association or Development Authority settlements or
privately built up homes.

Construction

Loans for construction on a freehold / lease hold plot or on a plot allotted by a

Development Authority.

Home improvement loan

Loans for enhancing your home in many ways such as tiling and flooring,
internal and external plaster and painting etc.

Home extension loan

Loans to extend or add space to your home such as additional rooms etc.

Plot

Loans for:
o Purchase of a plot through direct allotment
o Purchase of a resale plot
o Transferring your outstanding loan availed from another Bank /
Financial Institution

Short term bridging loans

Loans for the immediate funds required to purchase a new home while waiting
for sale of your existing home.

Rural housing loan

Specially designed loans to Agriculturists, Planters, Horticulturists, Dairy

Farmers for:
o Purchasing an under construction / new / existing residential property
in the rural and urban areas.
o Constructing your home on a freehold / lease hold residential plot in the
rural and urban areas.
o Enhancing your home in many ways such as tiling and flooring, internal
and external plaster and painting etc.

o Extending / adding space to your home such as additional rooms etc.

Loans also available for the Salaried / Self-Employed for:

o Purchasing a under construction / new / existing residential property in
your village.
o Constructing your home on a freehold / lease hold residential plot in
your village.
o Enhancing and extending / adding space to your home in many ways.

HDFC reach

Specially designed loans for:

o Purchasing a new or an existing home
o Constructing your home on a free hold or lease hold plot or on a plot
allotted by a Development Authority.
o Transferring your outstanding Home Loan availed from another Bank or
Financial Institution to HDFC.
o Enhancing your home in many ways such as tiling and flooring, internal
and external plaster and painting etc.
o Extending / adding space to your home such as additional rooms etc.

Basis

New home

Resale

Construction

1.Who can
apply ?

You can apply

individually or jointly for
Home Loans. All
proposed owners of the
property will have to be
co-applicants. However,
all co-applicants need
not be co-owners.
Generally co-applicants
are close family
members.
The maximum period of
repayment of a loan
shall be up to 30 years
for the Telescopic
Repayment Option
under the Adjustable
Rate Home Loan. For
all other Home Loan
products, the maximum
repayment period shall
be up to 20 years.

You can apply individually

or jointly for Home Loans.
All proposed owners of
the property will have to
be co-applicants.
However, all coapplicants need not be
co-owners. Generally coapplicants are close
family members.

You can apply

individually or jointly for
Home Loans. All
proposed owners of the
property will have to be
co-applicants. However,
all co-applicants need
not be co-owners.
Generally co-applicants
are close family
members.
The maximum period of
repayment of a loan
shall be up to 30 years
for the Telescopic
Repayment Option
under the Adjustable
Rate Home Loan. For
all other Home Loan
products, the maximum
repayment period shall
be up to 20 years.

2.Loan
Term

3.Max.
Loan amt.

Up to
Rs.75
lacs
Above

The maximum period of

repayment of a loan shall
be up to 30 years for the
Telescopic Repayment
Option under the
Adjustable Rate Home
Loan. For all other Home
Loan products, the
maximum repayment
period shall be up to 20
years.

80% of the
property
cost

Up to
Rs.75
lacs

80% of the
property cost

Above
Rs.75

75% of the

75% of the

Up to
Rs.75
lacs
Above

80% of the
property
cost

75% of the

Rs.75
lacs
4.Types of
Home
Loan

5. Interest
rates

6.Document
s for proof
of identity
and
residence

7.Proof of
income

ADJUSTABLE
RATE HOME
LOAN
TRUFIXED
PLUS HOME
LOAN 2 YEAR
FIXED RATE
VARIANT
TRUFIXED
PLUS HOME
LOAN 3 YEAR
FIXED RATE
VARIANT
Adjustable Rate Loan
for Women*
9.85 to 10.35%
Adjustable Rate Loan
9.90 to 10.40%

lacs

property cost

ADJUSTABLE
RATE HOME
LOAN
TRUFIXED PLUS
HOME LOAN 2
YEAR FIXED
RATE VARIANT
TRUFIXED PLUS
HOME LOAN 3
YEAR FIXED
RATE VARIANT

Adjustable Rate Loan

for Women*
9.85 to 10.35%
Adjustable Rate Loan
9.90 to 10.40%

Rs.75
lacs

property
cost

ADJUSTABLE
RATE HOME
LOAN
TRUFIXED
PLUS HOME
LOAN 2 YEAR
FIXED RATE
VARIANT
TRUFIXED
PLUS HOME
LOAN 3 YEAR
FIXED RATE
VARIANT
Adjustable Rate Loan
for Women*
9.85 to 10.35%
Adjustable Rate Loan
9.90 to 10.40%

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

PAN Card
Last 3 months'
Salary Slips
Last 6 months'
Bank
Statements,
showing salary
credits
Latest Form-16
and IT returns

PAN Card
Last 3 months'
Salary Slips
Last 6 months'
Bank Statements,
showing salary
credits
Latest Form-16
and IT returns

PAN Card
Last 3 months'
Salary Slips
Last 6 months'
Bank Statements,
showing salary
credits
Latest Form-16
and IT returns

Copy of the

Title Deeds

8.Property
related

property
cost

Title Deeds of the

documents

Allotment Letter /
Buyer Agreement
Receipt/(s) of
payment/(s)
made to the
developer

Other
documents

9.Repayme

Employment
Contract /
Appointment
Letter in case
current
employment is
less than 1 year
old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants /
co-applicants to
be affixed on the
Application Form
and signed
across
Cheque for
processing fee
favouring HDFC
Ltd.

STEP UP

including the
previous chain of
the property
documents
Receipt/(s) of
initial payment/(s)
made to the seller
Copy of the
agreement to sell
(if already
executed)

Employment
Contract /
Appointment Letter
in case current
employment is
less than 1 year
old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants / coapplicants to be
affixed on the
Application Form
and signed across
Cheque for
processing fee
favouring HDFC
Ltd.

STEP UP

Plot
Proof of no
encumbrances
on the property
Copy of the
plans, approved
by the Local
Authorities
Construction
estimate by an
Architect / Civil
engineer

Employment
Contract/Appoint
ment Letter in
case current
employment is
less than 1 year
old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants /
co-applicants to
be affixed on the
Application Form
and signed
across
Cheque for
processing fee
favouring HDFC
Ltd.
Own Contribution
Proof
STEP UP

nt options

10.Processi
ng fees

REPAYMENT
FACILITY
(SURF)
FLEXIBLE LOAN
INSTALLMENTS
PLAN (FLIP)
TRANCHE
BASED EMI
ACCELERATED
REPAYMENT
SCHEME
TELESCOPIC
REPAYMENT
OPTION

Up to 0.50% of the loan

amount or Rs.2,000
whichever is higher,
plus applicable taxes.
No prepayment charges
shall be payable on
account of part or full
prepayments.
Conversion fees: 0.50
to 1.75 % depending
upon the terms of loan
Cheque Dishonour
Charges
Rs.200**
Charges on account of
delayed payments
Delayed payment of
interest or EMI shall
render the customer
liable to pay additional
interest up to 24% per
annum

REPAYMENT
FACILITY (SURF)
FLEXIBLE LOAN
INSTALLMENTS
PLAN (FLIP)
TRANCHE
BASED EMI
ACCELERATED
REPAYMENT
SCHEME
TELESCOPIC
REPAYMENT
OPTION

Up to 0.50% of the loan

amount or Rs.2,000
whichever is higher, plus
applicable taxes.
No prepayment charges
shall be payable on
account of part or full
prepayments.
Conversion fees: 0.50 to
1.75 % depending upon
the terms of loan
Cheque Dishonour
Charges
Rs.200**
Charges on account of
delayed payments
Delayed payment of
interest or EMI shall
render the customer
liable to pay additional
interest up to 24% per
annum

REPAYMENT
FACILITY
(SURF)
FLEXIBLE LOAN
INSTALLMENTS
PLAN (FLIP)
TRANCHE
BASED EMI
ACCELERATED
REPAYMENT
SCHEME
TELESCOPIC
REPAYMENT
OPTION

Up to 0.50% of the loan

amount or Rs.2,000
whichever is higher, plus
applicable taxes.
No prepayment charges
shall be payable on
account of part or full
prepayments.
Conversion fees: 0.50
to 1.75 % depending
upon the terms of loan
Cheque Dishonour
Charges
Rs.200**
Charges on account of
delayed payments
Delayed payment of
interest or
EMI shall render the
customer liable to pay
additional interest up to
24% per annum

Basis

Improvement

Extension

Plot

1.Who can
apply ?

You can apply individually

or jointly for Home
Improvement Loans. All
proposed owners of the
property will have to be
co-applicants. However,
all co-applicants need not
be co-owners. Generally
co-applicants are close
family members.

You can apply

individually or jointly for
plot Loans. All proposed
owners of the property
will have to be coapplicants. However, all
co-applicants need not
be co-owners. Generally
co-applicants are close
family members.

2.Loan
Term

You may spread out your

payments for the loan
over a maximum term of
15 years..

You can apply

individually or jointly for
Home extension Loans.
All proposed owners of
the property will have to
be co-applicants.
However, all coapplicants need not be
co-owners. Generally
co-applicants are close
family members.
You may spread out
your payments for the
loan over a maximum
term of 20 years.

3.Max.
Loan amt.

Existing HDFC customer

100% of the
improvement
Up
estimate (subject
to
to loan / total
Rs
exposure not
.7
exceeding 80% of
5
the market value of
lac
the property as
assessed by HDFC)

100% of the
Ab
improvement
ov
estimate (subject
e
to loan / total
Rs
exposure not
.7
exceeding 75% of
5 the market value of
lac
the property as
assessed by HDFC

New customer

Up to
Rs.75
lacs
Above
Rs.75
lacs

80% of the
property
cost

75% of the
property
cost

You may spread out

your payments for the
loan over a maximum
term of 15 years..

Up to
Rs.75
lacs
Above
Rs.75
lacs

80% of the
property
cost

75% of the
property
cost

4.Types of
Home
Loan

Up to
Rs.75
lac

80% of the
improvement
estimate

Above
Rs.75
lac

75% of the
improvement
estimate

5.Interest
rates

6.Documen
ts for proof
of identity
and
residence
7.Proof of
income

ADJUSTABLE
RATE HOME
LOAN
TRUFIXED PLUS
HOME LOAN 2
YEAR FIXED
RATE VARIANT
TRUFIXED PLUS
HOME LOAN 3
YEAR FIXED
RATE VARIANT

Adjustable Rate Loan

for Women*
9.85 to 10.35%
Adjustable Rate Loan
9.90 to 10.40%

ADJUSTABLE
RATE HOME
LOAN
TRUFIXED
PLUS HOME
LOAN 2 YEAR
FIXED RATE
VARIANT
TRUFIXED
PLUS HOME
LOAN 3 YEAR
FIXED RATE
VARIANT
Adjustable Rate
Loan for Women*
9.85 to 10.35%
Adjustable Rate
Loan
9.90 to 10.40%

ADJUSTABLE
RATE HOME
LOAN
TRUFIXED
PLUS HOME
LOAN 2 YEAR
FIXED RATE
VARIANT
TRUFIXED
PLUS HOME
LOAN 3 YEAR
FIXED RATE
VARIANT
Adjustable Rate
Loan for Women*
9.90 to 10.40
Adjustable Rate
Loan
9.95 to 10.45%

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

PAN Card
Last 3 months'
Salary Slips
Last 6 months'
Bank Statements,
showing salary
credits
Latest Form-16
and IT returns

PAN Card
Last 3 months'
Salary Slips
Last 6 months'
Bank Statements,
showing salary
credits
Latest Form-16
and IT returns

PAN Card
Last 3 months'
Salary Slips
Last 6 months'
Bank Statements,
showing salary
credits
Latest Form-16
and IT returns

8.Property
related
documents

9.Other
documents

All original Title

Deeds of the
property
Proof of no
encumbrances on
the property
An estimate of the
proposed work
from an Architect /
Civil Engineer

Employment
Contract /
Appointment
Letter in case
current
employment is less
than 1 year old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants / coapplicants to be
affixed on the
Application Form
and signed across
Cheque for
processing fee
favouring HDFC
Ltd.
Own Contribution
Proof

10.Processi
ng fees

Up to 0.50% of the loan

Title Deed of the

plot
Proof of no
encumbrances on
the property
Copy of the
plans, approved
by the Local
Authorities
Construction
Estimate by an
Architect / Civil
engineer

Employment
Contract /
Appointment
Letter in case
current
employment is
less than 1 year
old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants /
co-applicants to
be affixed on the
Application Form
and signed
across
Cheque for
processing fee
favouring HDFC
Ltd.
Own contribution
proof

Up to 0.50% of the loan

Copy of Allotment
Letter / Buyer
Agreement
Title Deeds
including the
previous chain of
the property
documents in
resale cases

Employment
Contract/Appoint
ment Letter in
case current
employment is
less than 1 year
old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants /
co-applicants to
be affixed on the
Application Form
and signed
across
Cheque for
processing fee
favouring HDFC
Ltd.
Own Contribution
Proof

Up to 0.50% of the loan

Basis
1.Who can
apply ?

amount
or
Rs.2,000
whichever is higher, plus
applicable taxes.

amount
or
Rs.2,000
whichever is higher,
plus applicable taxes.

amount
or
Rs.2,000
whichever is higher,
plus applicable taxes.

No prepayment charges
shall be payable on
account of part or full
prepayments.

No prepayment charges
shall be payable on
account of part or full
prepayments.

No prepayment charges
shall be payable on
account of part or full
prepayments.

Conversion fees: 0.50 to

1.75 % depending upon
the terms of loan

Conversion fees: 0.50

to 1.75 % depending
upon the terms of loan

Conversion fees: 0.50

to 1.75 % depending
upon the terms of loan

Cheque Dishonour
Charges

Cheque Dishonour
Charges

Cheque Dishonour
Charges

Rs.200**

Rs.200**

Rs.200**

Charges on account of
delayed payments

Charges on account of Charges on account of

delayed payments
delayed payments

Delayed payment of
interest or
EMI shall render the
customer liable to pay
additional interest up to
24% per annum

Delayed
payment
of
interest or EMI shall
render
the
customer
liable to pay additional
interest up to 24% per
annum

Delayed payment of
interest or EMI shall
render the customer
liable to pay additional
interest up to 24% per
annum

Short term bridging

loans
You can apply individually
or jointly for short term
bridging Loans. All
proposed owners of the
property will have to be
co-applicants. However,
all co-applicants need not
be co-owners. Generally
co-applicants are close
family members.

Rural housing finance

HDFC Reach

You can apply

individually or jointly for
Home Loans. All
proposed owners of the
property will have to be
co-applicants. However,
all co-applicants need
not be co-owners.
Generally co-applicants
are close family
members.

You can apply

individually or jointly for
plot Loans. All proposed
owners of the property
will have to be coapplicants. However, all
co-applicants need not
be co-owners. Generally
co-applicants are close
family members.

2.Loan
Term

3.Max.
Loan amt.

You may spread out your

payments for the loan
over a maximum term of
2 years.

Up to
Rs.75
lac

Above
Rs.75
lac

4.Types of
Home
Loan

80% of the
improvement
estimate

75% of the
improvement
estimate

SIMPLE
INTEREST
ADJUSTABLE
RATE LOAN

ANY LOAN AMT

The maximum period of

repayment of a loan
shall be upto 30 years
for the Telescopic
Repayment
Option(applicable only
for the Salaried / Self
Employed segments)
under the Adjustable
Rate Home Loan. For all
other Home Loan
products, the maximum
repayment period shall
be up to 20 years..

Up to
Rs.75
lacs
Above
Rs.75
lacs

The
maximum
period
of
repayment of a
loan shall be up
to 20 years.

Repayment
will
not
ordinarily
extend
beyond
your
age
of
retirement if you
are employed or
70 years of age,
whichever
is
earlier

80% of the
property
cost

75% of the
property
cost

Up to
Rs.20
lacs
Up to Rs
20 lacs

ADJUSTABLE
RATE HOME
LOAN
TRUFIXED
PLUS HOME
LOAN 2 YEAR
FIXED RATE
VARIANT
TRUFIXED
PLUS HOME
LOAN 3 YEAR
FIXED RATE
VARIANT
ADJUSTABLE
RATE

70%% of
the
property
cost for
salaried
employees
60% of the
property
cost for self
employed

ADJUSTABLE
RATE HOME
LOAN

Up to 20 lacs:

5.Interest
rates

RESIDENTIAL PURPOSE:

LOAN FOR WOMEN*

12.55%

9.85 to 10.35%
ADJUSTABLE RATE LOAN

ANY LOAN AMT

COMMERCIAL PURPOSE

9.90 TO 10.40%

11.80 or 12.80% for

salaried employees
and 12.80% for self
employed

13.40%
6.Documen
ts for proof
of identity
and
residence
7.Proof of
income

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

PAN Card
Last 3 months'
Salary Slips
Last 6 months'
Bank Statements,
showing salary
credits
Latest Form-16
and IT returns

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

For agriculturalist

Copies of Title
Documents of
Agricultural Land
depicting Land
holding
Copies of Title
Documents of
Agricultural Land
depicting crops
being cultivated
Last 6 months'
Bank Statements

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment
Letter

For salaried
PAN Card Last 3
months' Salary Slips

Last 6 months'
Bank
Statements,
showing salary
credits
.Latest Form-16
and IT returns

For self employed

For salaried

Last 3 months'
Salary Slips
Last 6 months'
Bank Statements,
showing salary
credits
Latest Form-16
and IT returns
PAN Card

PAN, TAN Card

Income Tax
Returns along
with computation
of income for the
last 3
Assessment Years
Last 3 years
Balance Sheet
and Profit & Loss
A/c Statements,
with Annexures /
Schedules
(Points 2 & 3
should be of both
the individual and
the business
entity and

8.Property
related
documents

Title Deeds
including the
previous chain of
the property
documents
Proof of no
encumbrances on
the property

9.Other
documents

Employment
Contract /
Appointment
Letter in case
current
employment is less
than 1 year old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants / coapplicants to be
affixed on the
Application Form
and signed across
Cheque for

Title Deed of the

plot
Proof of no
encumbrances on
the property
Copy of the
plans, approved
by the Local
Authorities
Construction
Estimate by an
Architect / Civil
engineer

Employment
Contract /
Appointment
Letter in case
current
employment is
less than 1 year
old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants /
co-applicants to
be affixed on the
Application Form
and signed

attested by a CA)
Last 6 months'
Current A/c
Statements of the
business entity
and Savings
Account
Statements of the
individual

Copy of Allotment
Letter / Buyer
Agreement
Title Deeds
including the
previous chain of
the property
documents in
resale cases

Employment
Contract/Appoint
ment Letter in
case current
employment is
less than 1 year
old
Last 6 months'
Bank Statements
showing
repayment of any
ongoing loans
Passport size
photograph of all
the applicants /
co-applicants to
be affixed on the
Application Form
and signed
across

processing fee
favouring HDFC
Ltd.
Own Contribution
Proof

across
Cheque for
processing fee
favouring HDFC
Ltd.
Own contribution
proof

Cheque for
processing fee
favouring HDFC
Ltd.
Own Contribution
Proof

For self employed

Business profile
Latest Form 26
AS
Memorandum
and Articles of
Association of the
Company
List of Directors
and Shareholders
certified by a CA /
CS in case of the
business entity
being a company
Partnership deed
in case of the
business entity
being a
partnership firm
Details of
ongoing loans of
the individual and
the business
entity including
the outstanding
amount,
instalments,
security, purpose,
balance loan
term, etc
Passport size
photograph of all
the applicants /
co-applicants to
be affixed on the
Application Form
and signed
across
Cheque for
processing fee
favouring HDFC

Ltd

10.Processi
ng fees

Up to 0.50% of the loan

amount
No prepayment charges
shall be payable on
account of part or full
prepayments.

CHEQUE

DISHONOUR

CHARGES
Rs.200**

Charges on account oF
DELAYED PAYMENTS
Delayed
payment
of
interest or EMI shall
render
the
customer
liable to pay additional
interest up to 24% per
annum

Up to 0.50% of the loan

amount
or
Rs.2,000
whichever is higher,
plus applicable taxes.
No prepayment charges
shall be payable on
account of part or full
prepayments.
Conversion fees: 0.50
to 1.75 % depending
upon the terms of loan

CHEQUE DISHONOUR
CHARGES
Rs.200**

Charges on account of
delayed payments
Delayed payment of
interest or EMI shall
render the customer
liable to pay additional
interest up to 24% per

Up to 1.50% of the loan

amount
No prepayment charges
shall be payable on
account of part or full
prepayments.

CHEQUE DISHONOUR
CHARGES
Rs.200**

Charges on account of
delayed payments
Delayed payment of
interest or
EMI shall render the
customer liable to pay
additional interest up to
24% per annum

annum

Basis
1. Eligi
bility

SBI
Minimum age: 18 years
as on the date of sanction
Maximum age: 70 years.
i.e. the age by which the
loan should be fully
repaid,
subject
to
availability of sufficient,
regular and continuous
source of income for
servicing
the
loan
repayment.

2. Loan
Term

3. Max.
Loan
amt.

Maximum 30 years (or)

up to the age of 70 years
(the age by which the
loan should be fully
repaid) of the borrower,
whichever is early.

Up to Rs. 20
Lacs

90%

Above Rs. 20
Lacs. and up
to Rs. 75 lacs

80%

Above Rs. 75
lacs

75&

ICICI

PNBHOUSING FINANCE

You can apply

individually or jointly
for Home Loans. All
proposed owners of
the property will have
to be co-applicants.
However, all coapplicants need not be
co-owners. Generally
co-applicants are close
family members.

age should not be

more than 70 years if
you are a salaried
employee and not
more than 65 years if
you are a selfemployed professional/
non-professional, at
the time of loan
maturity

Max 20 years (or) up to

the age of 60 years ,
whichever is early

Max period : 30 years

85% of the cost of

property or 100% of
registry amount

Up to Rs
20 lacs

20 lacs
and
above, up
to 75 lacs

90% of
market
value

80% of
market
value

Above 75
lacs

4.Interest
rates

FOR WOMEN: 9.70%

FOR OTHERS:9.80%

For women: 9.85%

For salaried
borrower:
Up to 5 crore: 9.90%
Above 5 crore:10.15%

75% of
market
value

For salaried: 9.95%

For self employed:
9.95%

For self employed:

Up to 1.50
crore:9.90%
Above 1.5 crores:1010.15%

5.Document
List of papers/
s for proof
documents applicable
of identity
to all applicants:
and
residence
Completed loan
application

3 Passport size
photographs

Proof of identify
(photo copies of
Voters ID card/
Passport/ Driving

licence/ IT PAN
card)

Proof of
residence (photo
copies of recent
Telephone Bills/
Electricity Bill/

Property tax
receipt/ Passport/

Completed loan
application form
with
photographs.
Proof of identify
(photo copies of
Voters ID card/
Passport/
Driving

Completed loan
application

3 Passport size
photographs

Proof of identify
(photo copies of
Voters ID card/
Passport/ Driving

licence/ IT PAN
card)

licence/ IT PAN
card)

Proof of
residence (photo
copies of recent
Telephone Bills/
Electricity Bill/

Proof of residence
(photo copies of
recent Telephone
Bills/ Electricity
Bill/

Property tax
receipt/
Passport/ Voters
ID card)

Property tax
receipt/ Passport/
Voters ID card)

Proof of business

Voters ID card)

Proof of business
address for nonsalaried
individuals
Statement of
Bank Account/
Pass Book for
last six months
Signature
identification
from present
bankers
Personal Assets
and Liabilities
statement

For guarantor
(wherever applicable):

Personal Assets
and Liabilities
Statement

2 passport size
photographs

Proof of
identification as
above

Proof of
residence as
above

Proof of business
address as above

Signature

Proof of business
address for nonsalaried
individuals
Statement of
Bank Account/
Pass Book for
last six months

address for nonsalaried

individuals

Statement of
Bank Account/
Pass Book for last
six months

Signature
identification
from present
bankers

IT returns for
past 3 years

identification
from his/her
present bankers
Additional documents
required for salaried
persons :

6.Processin
g fees

Original Salary
Certificate from
employer

Up to 25 lacs:
75% of the loan
amt or minimum
Rs.1000
25-27 lacs:
Rs. 6500

0.50% - 1.00% of the

loan amount or Rs.
1500/- (Rs. 2000/- for
Mumbai, Delhi &
Bangalore), whichever
is higher + applicable
Service Tax &
Surcharge

Fee of 0.50% (Max.

Rs.20,000/-)

Above 75 lacs:
Rs. 10000

7.Security

8.Insurance

Equitable mortgage of
the property to be
financed and/or such
other collateral
securities as may be
deemed fit by PNBHFL.

Equitable mortgage of the Security

of
the
property
property and/or any
other
additional
collateral security as
may
be
mutually
agreed upon.
The house/flat shall be
optional
Optional
insured comprehensively
for the market value
covering fire, flood,
Earthquake etc. in the

joint names of the Bank

and the borrower. Cost of
the same shall be borne
by the borrower

Basis
1.Eligiblity

AXIS BANK

HDFC

You can apply individually or

jointly for Home Loans. All
proposed owners of the
Applicants should be above 24
property will have to be coyears of age at the time of loan
applicants. However, all cocommencement and up to the age
applicants need not be coof 60 or superannuation,
owners. Generally cowhichever is earlier at the time of
applicants are close family
loan maturity.
members.
Repayment period for Home Loans The maximum period of
shall not exceed 30 years.
repayment of a loan shall be
up to 30 years for the
Telescopic Repayment Option
under the Adjustable Rate
Home Loan. For all other
Home Loan products, the
maximum repayment period
shall be up to 20 years.
.

2.Loan
Term

3.Max.
Loan amt.
Up to Rs. 20 Lacs

85%

Above Rs. 20 Lacs.

and up to Rs. 75
lacs

80%

Above Rs. 75 lacs

75%

FOR SALARIED: 9.95%

4.Interest
rates

FOR SELF EMPLOYEED:

Up to
Rs.75 lacs
Above
Rs.75 lacs

80% of the
property cost

75% of the
property cost

ADJUSTABLE RATE
FOR WOMEN*

LOAN

10.20%

5.Document
s for proof
of identity
and
residence

9.85 to 10.35%
ADJUSTABLE RATE LOAN
9.90 TO 10.40%

Passport or Voter's ID card

or Driving License or Job
Card issued by NREGA or
Adhaar Card or PAN card
(PAN Card only as identity
proof) or any other
document as acceptable to
the Bank

Latest 3 Months salary slip

showing all deductions and Form
16
IT returns for the last 2 years and
computation of income for the last
2 years certified by a CA
Last 6 months passbook statement

6.Processin
g fees

Processing fee equivalent to 1% of

the loan amount (applied for) will
be collected along with the
application form (taxes as
applicable).

7.Security
Equitable mortgage of the property

Valid Passport
Voter ID Card
Aadhaar Card
PAN Card
with Allotment Letter
Last 3 months'
Salary Slips
Last 6 months' Bank
Statements,
showing salary
credits
Latest Form-16 and
IT returns
Title Deeds of the
Plot
Proof of no
encumbrances on
the property
Copy of the plans,
approved by the
Local Authorities
Construction
estimate by an
Architect / Civil
engineer

Up to 0.50% of the loan

amount or Rs.2000 whichever
is higher, plus applicable taxes.

to be financed by way of deposit of

title deeds.

8.Insurance

Optional

Security of the property and/or

any other additional collateral
security as may be mutually
agreed upon.
Optional

 All one need is the courage to innovate, the skill to

understand clientele and the desire to give them the best
.Likewise following are some of the suggestions which
would help HDFC in improvising their working styles and
performance.

Most of the customers face problems regarding the rate of

interest. HDFC must inform its customers about the change in
ROI, It automatically changes but there is decrease inrate of
interest , it doesnt change automatically.

Any change in the policies must be intimated to all the

customers .HDFC should provide proper information to its
customers.

There is lot of formalities in the loan disbursement process

.Too much documentation is done . Customer is no aware of
all the formalities. Therefore paperwork should be more
friendly and clear .

Customers should be given proper information about EMI.

They are generally not told how their EMI are calculated they
should know EMI is calculated and of what amount.

 After sale service is an issue of concern. Customers facing

problems are not attended o n t i m e . E m p l o ye e s a r e
g e n e r a l l y c o o p e r a t i ve o n l y w h en t h e l o an i s
s a n c t i o n e d a n d disbursed. Therefore after sale service
should be improved up to the satisfaction level of the
customer.

Website of HDFC should give more options and features to

customers so that they get maximum information sitting at
home

Employees of HDFC should be more prompt towards

customers grievances and problems

HDFC should provide personalized services to customers.

Comparative pricing in terms of lower interest rates and front

end changes should be adopted.

Company should enter into tie ups with reputed builders and
development authorities.

 HDFC should increase their reach by penetrating into rural

and semi urban areas .They should also capitalize on present
customer base by generating referrals

Aggressive marketing and great publicity through

newspapers, hoarding, websites and other medias should be
done.

 Rejection at the first stage due to incompatibility

between the borrowers qualifications and lenders
requirements. It could be the age criteria, income
criteria, improper documents, the institution not
being able to verify the customers details properly
etc.

With every application form for home loans, HDFC require

about 0.25% to 1% of the loan amount to be submitted as the
processing fees. The processing fees are generally
Non-refundable. In simple words this means that for whatever
reasons, if the institution finds that customer doesnt deserve
the home loan this fee wont be returned.

Another limitation is that desired loan is usually not

sanctioned. The loan amount sanctioned is mostly based on
repayment capacity of the borrower. The monthly income,
financial history or other unpaid loans with the borrower, past
payment record, credit card usage history, if any bounced
cheque, average balance with the banks, total years in
employment etc. . These factors all clubbed together help in
the institution to decide whether it will be able to recover its
money satisfactorily or not.

The interest rate dilemma

 Another major limitation is Difference in property valuation.

The company has its own experts for legal, technical and
financial appraisal of the property in question. It evaluates the
property on its established parameters and assigns a value to
it .This value can be significantly lower than the price the
customer quoted for the property. This can cause a significant
gap between what is needed and what the company is willing
to lend.

Another is the Title deeds and NOC Documentation Problem.

The Title deeds and NOC Documents have to be furnished in
the banks format. Borrowers who dont provide them
in proper format, will ruin the entire exercise and wont get
any loan.