Home Loan Pro.

SUMMER TRAINING PROJECT REPORT ON HOME LOAN SCHEMES OFFERED BY DIFFERENT BANKS

CONTENTS 1.

Introduction

2.

Objective

3.

Company Profile

4.

Industry Scenario

5.

Analysis of Different Banks ♦ HDFC ♦ IDBI ♦ STANDARD CHARTERED ♦ ABN-AMRO BANK

6.

Comparison of Bank Facilities

7.

Comparison of interest of different banks

8.

Research Methodology

9.

Data Analysis

10.

SWOT Analysis

11.

Conclusion

12.

Recommendation

13.

Bibliography

INTRODUCTION A roof over one's head and ground beneath one's feet count as the bare necessities of life. There’s nothing quite like owning a home, however humble, to give one that warm and glowing feeling. But when one buys a home, one has much more than a feel-good purchase in mind: it’s also a crucial investment decision, perhaps the biggest spending decision of one's life. There are ample opportunities today for young salaried investors to plan their moves early and buy a house at the right time — and at the right price. In the process, not only do they fulfill that cherished dream of owning a house, but also put themselves on the path to acquiring property that would meet the needs and aspirations of their growing family, even as it leads to wealth creation. Every individual aspires to own a home. But many either spend a lifetime saving to purchase a house or exhaust money on monthly house rents. Take a house loan and let the monthly rent (easily converted into affordable EMIs) build dream home

.

Profitable Proposition “The overall demand in the residential sector has grown by about 7-8 per cent in the past few months as compared to the same period last year. The growth is on account of two main factors:  One , income-tax exemption;  Two , with no similar rebates available for individuals in the highincome group, they are creating a second asset. Add to this the stable property prices over the last year and plunging interest rates, planning for dream home could not have been better timed. Rock-bottom interest rates, standardization of the periodicity of interest calculation across lenders (which makes it easier to compare loans), lower interest charges, waiver of loan application processing fees and, a customer-friendly attitude is reason enough to celebrate the ascension of the home loan consumer as the king.

In response, private players like Chartered Bank

ICICI Bank , IDBI Bank , Standard

and a few others too lowered their rates. Market leader

ICICI also brought down its interest rates to 8.0%, very recently, to participate in the interest rate war. If one is still not satisfied with the lowered loan rates, there’s more. Some industry watchers believe the floating home loan rate will slip to 8 per cent for long-term loans in another two to three years. Most banks have changed the way interest is calculated from annual rests to monthly rests. Under the annual rests method, the EMIs (equated monthly installments) one pays through a year are factored in as part-repayment of the principal component only at the end of each year. In other words, one has to pay interest even on the installments one has paid until they’re reduced from the principal at the end of each year. Under monthly rests, the principal is lowered by the appropriate amount each month. The thumb rule being that the more frequently interest is calculated, the better for the creditor. Recently,

ICICI added

monthly rests on its fixed-interest loans apart from annual rests. As a result, the fall in EMIs on fixed-interest loans (where the interest rate is constant for the entire tenure of the loan, irrespective of changes in the lending rates) is more pronounced than on floating-rate loans (where the loan interest rate varies with changes in the interest rates). For example, the EMI on a 15-year, fixed-interest loan for Rs 15 lakhs has come down by Rs 840; the corresponding fall in the EMI on a floatingrate loan is only Rs 465. Apart from lowering the cost of one's loan, the switchover to monthly rests has another advantage: it makes it easier to compare loans.

OBJECTIVE OF THE STUDY The objective of this research is to analyse the home loans with a view to arrive at the most popular loan schemes offered by the banks under study and to conclude from the analysis the best possible schemes which would keep the bank ahead of competition. The purpose of the study is to find the critical factors that are essential for any housing loan scheme and the most favored scheme in the Indian scenario. The reasons being the features that the scheme provides are not being provided by many of the housing finance companies.

ICICI BANK

OVERVIEW ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches and extension counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs. 308.00 billion (US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for

both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. *Free float holding excludes all promoter holdings, strategic investments and cross holdings among public sector entities. HISTORY ICICI Personal financial services limited (ICICI PFS), ICICI- CREDIT,

FORMERLY

was one of the first four companies to obtain

registration as a non-banking financial company (NBFC) from the Reserve Bank of India (RBI) on September 10, 1997 under the new section 45 IA of the Reserve Bank of India Act, 1934.

History of ICICI 1955 :

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited : ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI also among the first Indian companies to raise funds from International markets.

1956 :

ICICI declared its first Dividend at 3.5%.

1958 :

Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.

1960 :

ICICI building at 163, Backbay Reclamation was inaugurated.

1961 :

The first West German loan of DM 5 million from Kredianstalt was obtained by ICICI.

1967 :

ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969 :

First two regional offices in Calcutta and Madras were opened.

1972 : Second entity in India to set-up merchant banking services. : Mr. H. T. Parekh appointed as the third Chairman of ICICI. 1977 :

ICICI sponsors the formation of Housing Development Finance Corporation. Managed its first equity public issue

1978 :

Mr. James Raj appointed as the fourth Chairman of ICICI.

1979 : 1982 :

Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI. Becomes the first ever Indian borrower to raise European Currency Units.

: ICICI commences leasing business. 1984 :

Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.

f1988 ICICI promotes TDICI - India's first venture capital company. : 1993 : ICICI sets-up ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan. : ICICI sets up ICICI Asset Management Company. 1994 : ICICI sets up ICICI Bank. 1996 : ICICI becomes the first company in the Indian financial sector to raise GDR. : ICICI announces merger with SCICI. : Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd 1997 : ICICI was the first intermediary to move away from single prime rate to three-tier prime rates structure and introduced yield-curve based pricing. : The name "The Industrial Credit and Investment Corporation of India Limited " was changed to "ICICI Limited". : ICICI announces takeover of ITC Classic Finance. 1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI Group. : ICICI announces takeover of Anagram Finance. 1999 : ICICI launches retail finance - car loans, house loans and loans for consumer durables. : ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares. 2000 : ICICI Bank becomes the first commercial bank from India to list its stock on NYSE. : ICICI Bank announces merger with Bank of Madura . 2001 : The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank.

2002 : Moodys' assign higher than sovereign rating to ICICI.

ICICI AT PRESENT At present, ICICI offers a full range of custodial services for primary and secondary market operations pertaining to debt, equity, money market instruments GDR/EURO issues conversions and GDR arbitrage to: 1. Overseas Institutional Investors like a. FIIs b. OCBs c. OFFSHORE FUNDS d. VENTURE FUNDS 2. Overseas Govermental Agencies 3. Institutions looking for proprietary investments 4. Mutual funds 5. Private investment companies 6. Large corporate 7. High net worth individuals As a value added service ICICI custodial services division assists the clients in preparation, submission and follow up for various applications for regulatory approvals including initial application by FII’S/OCB with SEBI/RBI. PERSONAL BANKING At ICICI BANK,

they are commited to making banking a pleasure. This

commitment is manifested in the services they offer – a wide range of accounts, investment schemes, and facilities. Each service offers their customers security, flexibility of operation and maximum returns. The various services provided under this is as follows: • Maxi Cash – savings Account • Quantum – Fixed Deposits • Quantum optima – Value added Savings Account • Money plus – Current Account • ATM • Phone Banking

• Treasure Chest – Locker facility • Power Pay Payroll • Retail Treasury Instruments CORPORATE BANKING MOBILE COMMERCE ICICI Bank now brings Bank Account and ICICI Credit Card to customers fingertips. With Mobile Commerce , customers can perform a wide range of query-based transactions from their OrangeTM (MUMBAI) and AIRTEL ( DELHI) Mobile Phone,

without even making a call.

• Access multiple accounts • Balance enquiry to the linked accounts • Cheque book requests • Mini statement – Listing of last three transactions • Request for account statements (by mail or fax) Facilities Provided By ICICI Attractive interest rates Door-step service from enquiry stage till final disbursement No guarantor required Can transfer your existing high-interest rate loan Can transfer your existing high-interest rate loan Special 100% funding for select properties

Vision And Strategy With a mission to build a world class bank, ICICI has adopted the strategies of: · Building a world class business:

Focus on core business, provide

superior customer service, and generate maximum returns and benefits for shareholders.

· Staying lean and focused:

Is vest in core business, optimal usage

of resource, and manage performance by balancing cost and risks. · Recognised as a winning organization:

Develop capability to the

fullest, instill global thinking, and inject of pride in to people to get connected to ICICI.

Introducing MoneySaver from ICICI Bank

Simply open an account with ICICI Bank and deposit your savings in this account. You pay interest only on your outstanding home loan minus your accumulated savings in the account. Which means that you pay less and also repay your loan faster! You can also use a MoneySaver account like a regular bank account.

How MoneySaver works for you Normal Home Loan Details MoneySaver Loan Loan Amount (Rs.) 10 lakhs 10 lakhs Interest Rate* 8% 8% Total Interest (Rs.) 10,07,457 5,10,922 Original Tenor 240 240 (months) Actual Tenor (months) 240 133 Savings in Interest 4,96,535 (50%) (Rs.) Savings in Tenor 107 (45%) (months)

ICICI Home Loan offers following types of loans-

. Home loans Office premise loans · Loan against property · Loan for NRIs · Balance transfer · Land loans

Loan Against Property Finance your dreams with Loan Against Property: Get a loan upto Rs.3 crore Payable in easy monthly installments over a period of 15 years or less Available against Residential as well as Commercial properties Also available is overdraft against your property You have the option of going for either fixed or floating rate loans. Adjustable Rate Loans Rate of interest charged on Residential property: 9.75% p.a. Rate of Interest charged on Commercial Property: 10.25% p.a.

EMI Table on Loan Against Property (adjustable rate) Residential Commercial Loan Tenure EMI / lakh (Rs.) EMI / lakh (Rs.) 5 years 2113 2138 10 years 1308 1336 15 years 1060 1090

Fixed Rate Loans Rate of interest charged on Residential property: 10.5% p.a. Rate of Interest charged on Commercial Property: 11% p.a.

EMI Table on Loan Against Property (fixed rate) Loan Tenure

Residential EMI / lakh (Rs.)

Commercial EMI / lakh (Rs.)

5 years

2150

2175

10 years

1350

1378

15 years

1106

1137

Processing fee: Nil. Admin fee: 1% of loan amount (plus applicable service tax).

Office Premises Loan EMI Table for Office Premises Loans Adjustable Rate Fixed Rate Rate of EMI / lakh Rate of EMI / lakh Loan Tenure Interest (Rs.) Interest (Rs.) 5 years 10.25% 2138 11% 2175 10 years 10.25% 1336 11% 1378 15 years 10.25% 1090 11% 1137 sProcessing fee: 0.5% of loan amount (plus applicable service tax) Admin fee: 0.5% of loan amount (plThe Office Premises Loans repayment is by Equated Monthly Installments (EMIs) comprising of interest and principal amount calculated on monthly rest. Following are some features of Office Premises Loans: You can avail of a loan of a minimum of Rs.2 lac* to a maximum of Rs.1 crore You can opt for a payback term of upto 15 years You could also include your spouse as a co-applicant for the loan and ICICI Bank shall include his / her income to enhance your loan es Loans

ICICI Loans for NRIs It is one of the things that you passionately want to own. A dream that represents years of effort, extra hours of work, sacrificed luxuries, and above all sustained pleasure of creating wealth little by little to afford your dream.Your home. Your very own small world in your country the fond memories of which you carry to your place of work in distant lands. At ICICI we realise what owning your home in your country means to you. And, wish to share your passion through ICICI Home Loans. Presented to you right at the comfort of your home. We'll have our representative to call on you at home, to understand your specific needs of speed and convenience and help turn your dream home into a reality. Addressed below are some of your concern in getting a Home Loan. Eligibility You are eligible for an ICICI Home Loan to construct or purchase a house/flat or extend your existing house if you are: Non-Resident Indian holding a valid Indian passport Over 25 years. A salaried individual. Our representative will tell you in detail about the documents that you are required to submit along with the application form. An indicative list is given below: Passport size photograph of all the applicants Copy of the passport and visa. Copy of work permit (if applicable) Copy of the CDC in case of customers who are empolyed in the merchant navy. Bank Statements for the last six months-both domestic and international General Power of Attorney as per our draft duly attested by the Indian consulate in case the NRI is not in India. If the NRI is in India then the POA can be locally notarised. Copy of your appointment letter and contract. Copy of the labour card/identity card (translated in english and countersigned by the consulate) if employed in the Middle East. Salary certificate (in english) specifying name,date of joining,designation and salary details.

Some querry asked from customer regarding HOME LOAN 1. Can customer avail of Home Loan from ICICI? Ans: Yes, customer can avail a Home Loan from ICICI, if you plan to construct or purchase a house/flat or extend your existing house/flat. You must be: Non-Resident Indian holding a valid Indian passport over 25 years. A salaried individual. 2. When customer can apply for the Home Loan? Ans: customer can apply for the Home Loan even before you have selected your property. A loan amount would be sanctioned to you, based on your repayment capacity, which will help you decide your budget and plan the buying of your house. 3. What is the loan amount customer can get? Ans: customer can get a Home Loan ranging from a minimum of Rs. 5 lac to maximum of Rs. 25 lacs. A maximum of 75% of the cost of the property or the cost of construction as applicable. Your repayment capacity as determined by us, taking into account your age, income, qualifications, number of dependents, assets, liabilities, stability/continuity of your employment/business and the co-applicants income. 4. Who can be a co-applicant for the loan? Ans: Customer could include your spouse as a co-applicant for the Home Loan and we shall include his/her income to enhance your loan amount. Further, in case there are any other co-owners they too need to be co-applicants. In the absence of a coapplicant, we would required a gaurantor from you. 5. Over how many years can customer repay the loan? Ans: Customer have the option of selecting a term, you are comfortable with, upto 7 years. The term does not extend beyond your retirement age or on your reaching 60 years of age whichever is earlier. 6. But can customer prepay the loan ahead of schedule? Ans: Yes, this is possible on request provided the necessary details given to us are as per our norms. There are no pre-payment charges.

Interest rates 1. What is the rate of interest? Ans: The rate of interest is 11.25% p.a. for a period of 5 years and 12.25% p.a. for a period of 7 years. Equated Monthly Installments (EMIs) per lac work out to Rs. 2,269 and Rs. 1,841 respectively. Documentation and security 1. What is the security required against the loan ? Ans: Customer need to provide security of the property and / or such other additional/collateral security as may be mutually agreed. 2.What documents are required to get the loan sanctioned ? Ans: representative will discuss the documents you are required to submit in detail. An indicative list is given below : Passport size photograph of all the applicants Copy of the passport and visa. Copy of work permit (if applicable) Copy of the CDC in case of customers who are empolyed in the merchant navy. Bank Statements for the last six months-both domestic and international General Power of Attorney as per our draft duly attested by the Indian consulate in case the NRI is not in India. If the NRI is in India then the POA can be locally notarised. Copy of your appointment letter and contract. Copy of the labour card/identity card (translated in english and countersigned by the consulate) if employed in the Middle East. Salary certificate (in english) specifying name,date of joining,designation and salary details. Loan sanction and disbursements 1) How will customer get the loan disbursed ? Ans: Customer loan will be disbursed on your identification and selection of the property Submission of the legal documents legal and technical clearance of your property. On satisfactory completion of the above and on your investment of your own contribution, the loan amount (as warranted by the stage of construction) will be

disbursed by ICICI. The disbursement will be favouring the Builder/Seller.

Repayments and Fees 1.What is the fees payable ? Ans: Customer pay only 2% of the loan amount, which includes: Processing fees - Rs.500 (at the time of application) Administration fees - Balance amount(i.e 2% - Rs.500, will be deducted from the amount disbursed). 2.How do customer repay the Home Loan ? Ans: The Home Loan repayment is by EMIs comprising of interest and principal amount calculated on annual rests. EMIs can be paid by Post Dated cheques from your NRE / NRO / FCNR / NRNR account and any such accounts as permitted by the RBI. In case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called Pre-EMI interest and is payable monthly till the final disbursement is made, after which the EMI's would commence.

Main Advantages of ICICI Home Loans 1. Free personal accident insurance 2. Door step service 3. No fees for part prepayment 4. And of course attractive interest rates

Free Personal Accident Insurance from ICICI Home Loans With every home loan you will get a Personal Accident Insurance absolutely FREE. Which means, in case of your accidental death, your family · Does not have to repay the balance loan amount · Can continue to stay in the home

Home Insurance A comprehensive coverage on your home and the contents within it against uncertainties of both natural and man-made calamities like fire, burglary, gas cylinder explosion, terrorism etc. • • •

Insure your Home against both natural & man-made calamities Covers both the structure and contents of your home Protection against fire, burglary, gas cylinder explosion, seepage etc.

•

Avail a 25% off on 5-year and 15% off on 3-year policy

FEATURES Attractive interest rates Door-step service from enquiry stage till final disbursement No guarantor required Can transfer your existing high-interest rate loan Can transfer your existing high-interest rate loan Special 100% funding for select properties Home loan •

customer must be at least 21 years of age when the loan is

sanctioned. •

The loan must terminate before or when you turn 65 years of

age or before retirement, whichever is earlier. •

Customer must be employed or self-employed with a regular

source of income.

Loan Amount

A number of factors are taken into account when assessing repayment capacity. Customers income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity of customer employment/ business are some of them. However, there are ways by which you can enhance your eligibility. •

If cusstomer spouse is earning, put him/her as a co-applicant.

The additional income shall be included to enhance loan amount. Incidentally, if there are any co-owners they must necessarily be coapplicants. •

customer fiancée's income can also be considered for

sanctioning the loan on your combined income? The disbursement of the loan, however, will be done only after submit proof of marriage. •

Providing additional security like bonds, fixed deposits and LIC

policies may also help to enhance eligibility. While there is no need for a guarantor, it could be that having one might enhance your credibility with us. If so, our loan officer would provide customer with the necessary details. The final amount to be sanctioned will depend on your repayment capacity. However, what customer ultimately are entitled to will have to conform within the limits fixed for each loan. Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included. HOME LOANS We at ICICI Bank understand the value of owning your own home. Our affordable home loans can make all the difference to their dream of owning home. 0% processing fee for a limited period. Refer to the table for a loan option that suits their need best

FIND THE RIGHT HOME Introducing Home Search - Our FREE online property search facility. A one stop shop for all their real estate needs. What you get 0% brokerage on first sale properties Access the entire market under one roof Site visits to properties short listed by you Help in negotiating the best price Help with legal documentation

Loan, sweet home loan: ICICI Bank home loan information ICICI Bank's home loans are a boon for those looking to buy a house or flat 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. 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. ICICI Bank, one of the largest private sector banks in India, is a major player in the home loan category, with attractive interest rates and a host of incentives to the customer seeking a house loan. Gone are the days when you seek salvation in endless paperwork in the run up to the elusive golden pot of housing loans. It has almost become a doorstep service, with golden carrots like personal accident insurance and special 100 per cent funding for select properties dangling in front of you. Eligibility for home loans For availing the ICICI Bank home loan, the age limit is at least 21 years. Another eligibility criteria is that you must be employed or at self-employed (Read: The bank wants to make sure that you can pay off the loans). The loan repayment must end when the person who availed it turns 65 or retires from service, whichever comes first. For land loan the apart from the aforementioned conditions, the person availing loans should be purchasing the property for residential use and the purchase has to be from a development authority or a registered co-operative society. The land in question must be for construction of a house, with clearly marked boundaries, leaving no room for legal wrangle on this count.

The office premise loan can be for purchase or construction or extension of a nonresidential property, but the bank insists on a 3-years’ work experience. Professionally qualified self employed individuals are eligible to apply. To avail home equity loans, or loans against property, you must also be the owner of a self-occupied property. Loan amount A host of factors, including income, age, number of dependents, assets and liabilities as well as stability of count when the loan amount is sanctioned. But the eligibility for bigger loans is also enhanced by some factors. If the loan applicant’s spouse is earning, the person can be a co-applicant which will enhance the amount. Co-owners, as a rule, must be co-applicants also. Your future spouse’s income can also be considered as combined income for loan, but the loan would be disbursed only after you tie the knot and produce the marriage certificate. Additional securities like bonds, fixed deposits and LIC policies also enhance creditworthiness. The final loan amount depends on your repayment capabilities, within the limits set for each type of loan. Registration, stamp duty and transfer charges are included in total costs. Documents

Salaried Self Employed Self Employed Non Customers Professionals Professionals Application form Application form with Application form with with photograph photograph photograph Age proof Age proof and office proof Age proof and office address proof Latest Salary-slip Proof of business Proof of business existence existence Form 16 Last 3 years Income Tax Business profile returns (self and business) Last 6 months Last 3 years P/L and B/S Last 3 years Income bank statements Tax returns (self and business) Processing fee Last 6 months bank Last 3 years P/L and cheque statements B/S Processing fee cheque Last 6 months bank statements (self and company) Processing fee cheque

Disbursal of loans The loan amount is disbursed after the required documents are submitted and after you have selected the home or property. A 230 A clearance of the seller or 371 clearance from IT authorities are also necessary. After the conveyance deed is registered and you invest own contribution the loan amount will be disbursed in favour of the builder or seller. Loan agreements, request for disbursement, post dated cheques and in some cases personal guarantors request are required documents for disbursal. Documents may vary from state to state. You can opt for fixed or adjustable rates. In case of adjustable rates for Home/Land loans, the rate varies with the ICICI floating reference rate. There is no processing fee. The administration fee is 0.5% of the total loan amount, plus the service tax. The interest is calculated on monthly remaining amount. A part prepayment documentation charge of Rs. 500 is charged for part prepayment. The maximum tenure is 20 years. For office premises loan, a processing fee of 0.5 % and an administration fee of another 0.5% is charged. Interest is calculated on the balance amount every month and maximum tenure is 15 years. A documentation charge of Rs 500 plus service charge is levied for part-prepayment. For Home Equity loans, or loans against property, the administration fee is one per cent of the total loan amount plus service tax, while the interest is on monthly remaining amount. Maximum tenure allowed is 15 years and a documentation charge of Rs 500, plus service charge will be levied for prepayment. In Fixed rate loans, the interest remains unchanged through out the tenure. For home/land loans the applicable rate of interest is 8.75 %. Administration fee is 0.5% of the loan amount plus service tax. Prepayment documentation charge of Rs 500 plus service charge is levied. For office premises loans, a processing fee of 0.5 % and an administration fee of 0.5% is levied. The rate of interest is 11%. For Home Equity loans, there is no processing fee. The administration fee is 1% plus f the loan amount plus service tax. The rate of interest is 10.5% for residential properties and 11% for commercial properties. The repayment tenure varies. For Home Equity and office premises loans the maximum tenure is 15 years, while for home loans the maximum tenure is 30 years. The loans are to be repaid via equated monthly installments or EMIs. EMIs comprise both principal amount and interest. The EMI starts the month after the full disbursement of loan is made. This can be either deducted from your salary, or paid through post-dated cheques, dated normally to the first of every month, which can be extended to any date till 7th of the month, depending on the salary date. Bounced cheques and delayed payments will attract charges. Post-dated cheques can be replaced within 5-7 working days. Applications can be put in even before selecting property. The applicant can select a property even if he is not residing in the city, but the ICICI bank needs to have operations in that city. You can withdraw from the loan within six months of the

approval. You can apply for home loans online.

NRI schemes ICICI Bank also offers home loans for non resident Indians as well as people of Indian origin from Australia, Canada, France, Germany, Gulf Cooperation Council countries, Honk Kong, Italy, Japan, Malaysia, New Zealand, Singapore US and UK. Loans are offered for purchase, construction, extension or renovation of a new residence. The maximum tenure for salaried is 15 and self-employed is for 10 years. For GCC countries, tenure is between 11-15 years, and minimum qualification is post graduate/professional qualification. For US and other countries, minimum qualification is diploma/graduation. Applicant should be employed for a minimum of three years abroad. The maximum loan amount is Rs 1 crore and minimum is Rs 5 lakh. Applications can be made online and there is facility to track the status online too.

Fixed rate Tenure (yrs)

Rate of Interest

EMI per Lac

* 9%

2075.836

Upto 5years 6 years 9% 1802.554 15 years 9% 1014.267 20 years 9% 899.726 • The interest rate is calculated on an monthly reducing basis. •

0%

•

Processing Fee.

•

No fee for part prepayment

Exhibit 2.3: Product Process Flow for Housing Finance

Enquiry

Application with processing fee submission

Credit Appraisal

Checking with

Interview

Verification with employer Recommendation to the Sanctioning Authority

Sanction by committee

Defer

Approval

Letter to

guarantor

Reject

applicants

Acceptance Letter with Administrative fees

Legal title Documents review

Signing loan disbursement documents

EMI repayment

Prepayment Penalty Charge

Listed below are the steps involved in availing of a home loan

Step 1 Step 2 Step 3 Step 4

Step 5

A person applies for a home loan. The executive meets the applicant and briefs him the entire loan process, requirements and the various options available. The applicant chooses a Housing Finance Company (HFC) and hands over the income documents to the executive. The income documents are handed over to the HFC for eligibility and approval. The HFC verifies the documents and checks the repaying capacity, saving habits, tenure of service, etc. of the applicant and approves the loan amount. After approval, an offer letter is given to the applicant by the

Step 6

Step 7 Step 8

Step 9

HFC, along with a list of original property title documents that have to be handed over to the HFC. The applicant gives the original property title documents to the HFC. The HFC scrutinises the legal and technical aspects of the original title documents. If the HFC is satisfied as to the legal & technical aspects of the documents then the applicant is called to sign the loan agreement. The loan disbursement schedule is decided by the HFC

Step 10

Step 11 Step 12

according to the stage of construction (if property under construction)or a one time payment is made if property is ready for possession The applicant gets possession of the property depending upon the level of completion of the property. The applicant starts paying the EMIs.

WHAT ALL CAN ONE TAKE A LOAN FOR: There are different types of home loans tailored to meet ones needs. Here’s are some of them:

:

Home Purchase Loans

: This is the basic home loan for the purchase of

a new home. Home Improvement Loans

: These loans are given for implementing

repair works and renovations in a home that has already been purchased by the client. Home Construction Loan

: This loan is available for the construction of

a new home. Home Extension Loan:

This is given for expanding or extending an

existing home. For eg: addition of an extra room etc. Home Conversion Loan:

This is available for those who have financed

the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of prepayment of the previous loan. Land Purchase Loans:

This loan is available for purchase of land for

both construction or investment purposes. Bridge Loans:

Bridge loans are designed for people who wish to sell

the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home. Amount This largely depends on a number of factors like ones age, profession, salary, the city one resides in among other such factors. It varies between Rs. 2 lac to Rs. 3 crore depending on the lender. As a rule of thumb, depending upon the HFC, one will have to cough up 15%-20% of the loan amount as a down payment. For smaller amounts, this may not be much. But for figures running into lakhs, this could make loads of difference. For eg. An apartment costing Rs 10 lakh may get 85 per cent

financing. So, one will have to arrange for the remaining Rs 1.5 lakh. If one takes this into account, the additional thousands will definitely put a strain on ones finances.

Tenure Generally, the maximum tenure of home loans is 15 years, with a few lenders offering tenure of 20 years or more (ICICI has recently launched a 30 year loan). The longer the tenure, more one pays in total interest, but ones monthly payments will be less. So depending on ones earning potential and bank balance, one can choose an appropriate tenure. An important requirement of most banks/HFCs is that one pays up the entire loan before one retires. One can always prepay ones entire loan amount before it is due. There is a trend to do away with the prepayment penalty being imposed by some lenders so its best one checks on this as well.

Interest Rate Without doubt the most important parameter to factor into ones calculations. The interest rates may vary from institution to institution and generally range from about 7.0% to around 8.0%. Repayment is in the form of EMI's (equated monthly installments). The longer the tenure, the more one pays in interest, but ones monthly payment will be less.

Refinance

This is a concept that is yet to catch on in the home loan market but is bound to be a major service in the months to come. Under this facility, one can take a new loan from another bank/HFC to pay back an old loan before its natural tenure. It gives one the opportunity of prepaying ones high cost debt and gets a lower cost one. In today's falling interest rate scenario one should use this vehicle to lower ones debt payments as much as possible. The lender facilitates the shift by paying the outstanding and transferring the asset to their portfolio.

Miscellaneous charges A heading that should be ignored at one’s peril! The interest rates and EMIs are not the only cost factor. Never underestimate how much the processing and administration fees amount to. A 0 .551% administration fee or processing fee on, say, a Rs 10,00,000 loan, would amount to Rs 5,510 . Other times, it could be just one fee (either administration or processing) but could yet work out to be much more if it is considerably higher at, say, 2.5 per cent or 3 per cent. The various other fees, which one is required to pay along with the margin amount, are: a) Interest Tax This is the tax payable on the interest paid on a home loan and not the principal. This tax is some times included in the interest rate of the loan, or may be charged separately as interest tax. b) Processing Charge It's a fee payable to the lender on applying for a loan. It is either a fixed amount not linked to the loan or may also be a percentage of the loan amount. The loan amount received by you can be less than the processing fee. c) Prepayment Penalties When a loan is paid back before the end of the agreed duration a penalty is charged by some banks/companies, which is usually between 1% and 2% of the amount being pre paid. d) Commitment Fees Some institutions levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned. e) Others It is quite possible that some lenders may levy a documentation or consultant charge.

INDUSTRY SCENARIO The housing finance industry

, encompassing banks and housing

finance companies (HFCs), has exhibited a 36 per cent growth between April and December 2004 despite the high prepayment levels experienced by some HFCs. Were it not for prepayments, the industry's outstanding assets would have grown at a higher 43 per cent. Aggressive marketing efforts of banks and HFCs have further precipitated this trend. Banks have an inherent advantage in retail finance, especially in housing loans, because of the lower cost of funds, existing retail relationships in liability products and large branch network. It is expected that banks will further increase their market share in the housing finance sector in the medium term. It is also expected that the housing finance sector will maintain its high growth rates in future given that the key growth drivers government's thrust on the housing sector in terms of fiscal incentives for individual housing loans coupled with the demand-supply gap in housing - would remain strong.

the

HDFC BANK The Housing Development Finance Corporation Limited (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. It was incorporated in August 1994 in the name of

‘HDFC Bank Limited’

, with its registered

office in Mumbai. HDFC began operations as a Scheduled Commercial Bank in January 1995. About the Promoter HDFC, the promoter, is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1997, HDFC has maintained a consistent growth in its operations and profitability and over the past 5 years has achieved annual growth rate of 25 – 30 %. Its outstanding loan portfolio covers over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base in relation to its housing related credit facilities and its investment portfolio. With its tremendous brand equity, strong reputation in the Indian and international financial services market, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. HDFC (together with its fully owned subsidiary HDFC Investments Ltd.) owns about 31% of the equity. They had started with a strategic alliance with the NatWest group in UK with 20% equity, which was divested later on. The bank also signed a

memorandum of understanding for strategic business collaboration with the Chase Manhattan Bank in February 2

nd

1999.

Business Philosophy The mission of HDFC Bank is to be world class Indian bank. This would imply a bank that would meet various financial needs of its customers in a convenient and cost effective manner at international standards of service. The bank seeks to achieve the status of a "preferred organization" among its major constituents- customers, shareholders, regulators, employees, suppliers etc.-while maintaining the highest levels of integrity and corporate governance. The business philosophy at HDFC Bank is based on four core values :Operational Excellence, Customer Focus, Product Leadership and People. Competitors Bank faces strong competition in all of their principal lines of business. Their primary competitors are large public sector banks, other private sector banks, foreign banks and, in some product areas, non-banking financial institutions. Wholesale Banking:

Principal competitors in wholesale banking are

public and new private sector banks as well as foreign banks. The large public sector banks have traditionally been the market leaders in commercial lending. Foreign banks have focused primarily on serving the needs of multinational companies and Indian corporations with cross-border financing requirements including trade, transactional and foreign exchange services, while the large public sector banks have extensive branch networks and large local currency funding capabilities. Retail Banking:

In retail banking, their principal competitors are the

large public sector banks, which have much larger deposit bases and

branch networks, other new private sector banks and foreign banks in the case of retail loan products. The retail deposit shares of the foreign banks is quite small by comparison to the public sector banks, and have also declined in the last five years, which we attribute principally to competition from new private sector banks. However, some of the foreign banks have a significant presence among non-resident Indians and also compete for non-branch-based products such as auto loans and credit cards. They face significant competition primarily from foreign banks in the provision of debit cards and also expect to face competition from foreign banks when we begin offering credit cards. In mutual fund sales and other investment related products, their principal competitors are brokers and foreign private banks. Treasury:

In treasury advisory services for corporate clients, they

compete principally with foreign banks in foreign exchange and derivatives trading, as well as the State Bank of India and other public sector banks in the foreign exchange and money markets business.

Loans HDFC Bank brings you a wide range of loans to cater your financial needs. The bank offers the following loans· Personal Loans · Consumer Loans · Auto Loans · Loans against shares · Loans against RBI Bonds · Loans against Insurance policy · E-instant loans-gives the facility of loan approval in 60 seconds on the internet. HDFC has offices spread all over the country. This extensive network helps HDFC in providing service to large and well spread out clients. This network of interconnected offices (on Data Circuits) helps HDFC to

process applications for purchase of property anywhere in India. HDFC has further established an office in Dubai and Service Associates in Kuwait, Oman and Qatar to make it easier for Middle East based NonResident Indians to apply for a loan to HDFC - India. HDFC is the pioneer of housing finance in India and has been a leader in the business for the last 23 years. HDFC has vast experience and a very committed and skilled staff to handle housing loan applications and solving customer problems.

HDFC Bank brings home loans at your doorstep. With over 25 years of experience, a dedicated team of experts and a complete package to meet all your housing finance needs, HDFC Ltd. - our parent company, helps customer realize your dream. Features & Benefits Home Loan - We offer home loans for individuals to purchase (fresh / resale) or construct houses. Home loans can be applied for jointly. HDFC finances up to 90% of the cost of the property (Agreement value + Stamp duty + Registration charges). Home Improvement Loan - HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers). Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan. Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 70% of the cost of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 10 years. Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or Partly Floating. Flexible repayment options to suit your individual needs . E-age saving account - As a special offer you can open an HDFC Bank E-Age Savings Account at a lower Average Quarterly Balance of Rs. 2,500, instead of

the regular Rs. 5,000. You can avail of benefits like free Phone Banking, Free Net Banking, 24-Hour ATM access, Inter-branch/Inter-city banking, a personalized cheque book and much more. Free International credit card - Enjoy a waiver on the fees for the first year on International Credit Card from HDFC Bank. The credit card is accepted worldwide and comes with the most comprehensive insurance coverage. You can even withdraw 30% of your entire credit limit through the ATM. Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties do not affect your family's interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise of the life assured. This pure risk plan is designed in a way that the cover decreases as you repay your home loan making it a low cost premium insurance plan. *Insurance is the subject matter of solicitation. Automated Repayment of Home loan EMI - Customer can give standing instructions to repay your Home Loan EMIs directly from your HDFC Bank Savings Account, thus, saving you the trouble of procuring, signing and tracking post-dated cheques . HDFC also offer In-house scrutiny of Property documents for your complete peace of mind. Customer privileges - If you are an existing HDFC Bank Home Loan customer, you can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loans and Loan against securities) at lower interest rates. If you are an HDFC Bank account holder, we have special rates for you.

HOME LOAN SCHEMES PURPOSE

HDFC Ltd. offers loans for the following purposes: • Land Purchase • Home Construction/Purchase • Home Extension • Home Improvement loans • Short-term Bridge Loans • Non-Residential Premises Loans For Professionals LOAN AMOUNT Loans can be availed up to a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends up to a maximum of Rs. 1,00,00,000 on a Home Loan to an individual. LOAN TENURE You can repay the loan over a maximum period of 20 years. RATE OF INTEREST Interest is calculated on annual rests. Principal repayments are credited at the end of HDFC's financial year. The effective rate of interest varies depending on the term of the loan. For a loan with a term of 15 years, the effective interest rate would be higher by 0.37% per annum than the indicated rate of interest.

SECURITY Typically the security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to HDFC of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors,

pledge of shares and such other investments that are acceptable to HDFC. The title to the property should be clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely. Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to HDFC of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to HDFC. DOCUMENTATION Following documents should be produced for approval of loan: a) Common for all applicants: 1.

Allotment letter of the co-operative society /

association of apartment owners. 2.

Copy

of

approved

drawings

of

proposed

construction / purchase. 3.

Agreement

for

sale/sale

deed/detailed

cost

estimate from architect/engineer for the property to be purchased / constructed. 4.

If you have been in your present employment /

business or profession for less than a year, mention details of occupation for previous 5 years, giving position held, reasons for change and period of the same. 5.

Applicable Processing Fees.

6.

Any other information regarding your repayment

capacity that is necessary and will assist HDFC in appraising the case.

b) Additionally, If borrower is Employed: 1.

Latest

salary

slip/salary

certificate showing all deductions. 2.

If

your

job

is

transferable,

permanent address where correspondence relating to the application can be mailed. 3.

A letter from your employer

agreeing to deduct the monthly installment towards repayment of the loan from your salary. This will expedite the processing of your loan application. If borrower is Self-Employed: 1.

Balance Sheets and Profit & Loss Accounts of

the business/profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant. 2.

A

note

giving

information

on

the

nature

business/profession, form of organization, clients, suppliers, etc.

ELIGIBILITY The repayment capacity as determined by HDFC will help in deciding how much one can borrow (the cost of the property or Rs. 1 crore, whichever is lower). Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. And, of course, HDFC's main concern is to make sure customer can comfortably repay the amount they borrow TAX BENEFIT Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest

repayment of Rs. 1,00,000 p.a. (for a loan on or after April 1, 2000) can get borrower a tax saving up to approximately Rs. 33,000 p.a. Moreover, customer can get added tax benefits under Sec 88 on repayment of principal amount up to Rs. 20,000 p.a. which can further reduce borrower’s tax liability by Rs. 2,000 p.a. About the product HDFC's Home Loans offers you various unique benefits and are easy to arrange and repayable in easy monthly instalments. The terms of the loan can be structured according to customer unique requirements. Home Loans can be applied for by either individually or jointly. Proposed owners of the property, in respect of which the loan is being sought, will have to be co-applicants. However, the co-applicants need not be co-owners. Loans can be availed upto a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends upto a maximum of Rs. 1,00,00,000 on a Home Loan to an individual. You can repay the loan over a

maximum period of 20 years

.theyl determine the loan

amount after evaluating the repayment capacity of the individual. HDFC's main concern is to help individuals comfortably repay the borrowed amount. Get in touch with your nearest

HDFC office today. We will be pleased to

discuss and help you realise your plans for a house USP Superior Processing Capacity

: HDFC has over the years invested

substantially into computer systems and training. This has enabled HDFC to respond to customer needs and build up capabilities to approve loans on the spot or disburse them fast. Branch Network : HDFC has offices spread all over the country. This extensive network helps HDFC in providing service to large and well

spread out clients. This network of interconnected offices (on Data Circuits) helps HDFC to process applications for purchase of property anywhere in India. HDFC has further established an office in Dubai and Service Associates in Kuwait, Oman, Qatar, Bahrain and Saudi Arabia to make it easier for Middle East based Non-Resident Indians to apply for a loan to HDFC - India. Experienced and Trained Staff

: HDFC is the pioneer of housing

finance in India and has been a leader in the business for the last 25 years. HDFC has vast experience and a very committed and skilled staff to handle housing loan applications and solving customer problems. Free Counselling : HDFC believes that it is in the business of providing solutions to an individuals need for owning a house, and not just in the business of providing finance. Keeping this in mind HDFC will provide free counselling to on how and where to buy a house in India (Property Services) or what are the prices and trends in the real estate market or what precautions one should take before buying a house. This service is offered at any of HDFC's offices. Legal and Technical Guidance

: HDFC has qualified Legal and

Technical staff who liase with the developers to collect and scrutinise the property documents and permissions. We have Master Files of most projects being developed by reputed developers. It has always been HDFC's endeavor to protect the interest of the borrower, as we believe that buying a house is one of the most important decisions in his life. Extension Products

: Over the last 25 years, HDFC has developed

various products in response to the needs of our customers. Today we offer Home Loans, Adjustable Rate Home Loans, Home Extension Loans, Home Improvement Loans, Home Equity Loans, Short Term Bridging Loans and Land Purchase Loans. Flexible (Customised) Repayment Schemes

: Keeping in mind the fact

that each individual has a unique problem requiring unique solutions, HDFC has developed various repayment options like Step Up Repayment Facility, Flexible Loan Instalment and Balloon Payment Scheme. Pari Passu/ Second Mortgage Arrangements

: HDFC has a tie-up with

a large number of Public Sector Organizations and banks which enables us to offer loans to your employees with the flexibility of their spouse also availing a loan from his/her own employer. Safe Document Storage Facilities

: HDFC has state of art storage

facilities, which are theft and fire proof, at various locations where loan and property documents are stored. In this way valuable documents are stored safely over the period of the loan and are released almost immediately after a customer repays his loan. Post disbursement services: a) The exemption in respect of interest on borrowed capital is Rs 1,50,000 under section 24 (b) of the Income Tax Act. Further interest on housing loans can now be taken into account by an employer while computing the tax to be deducted from an employee's salary. b) HDFC sends interest certificates to its customers well in advance which enables them to take advantage of the tax exemption in their monthly salary c) We can transfer files of customers from one location to another in case of transfer of the customer in course of his job. d) A customer, after availing of a loan can approach HDFC anytime thereafter to increase the Equated Monthly Installment which will help him repay the loan faster. This facility is offered free of charge to our customers. Electronic Mail : HDFC through its e-mail service can promptly respond to queries. In addition, HDFC can promptly send it is application form cum brochure and other details on its loan products by e-mail to

interested individuals. For Non-Resident

Indians,

our

interactive

Website offers another means for contacting us. In our effort to reach out globally dispersed Non-Resident Indians, we will continuously enhance our Website. Home Conversion Loans

: HDFC offers the option of a Home

Conversion Loan to its existing customers who are interested in moving to a new house. Through this scheme customers can apply to have their existing loan transferred towards the purchase of the new home. Customers may also apply for an additional loan amount for the purchase of the new house. This gives the customer the option of selling their existing house, if they wish to, without having to repay their old loan. Applications can be made before selecting property

: Individuals may

make an application for a loan even if the property has not been selected or the construction has not commenced. HDFC can provide assistance in locating an appropriate house to such customers. Home Improvement Loans

: As an exclusive offer to it's existing

customers HDFC offers Home Improvement Loans upto 100% of the improvement cost as compared to Home Improvement Loans of upto 70% of the improvement cost offered to the general public.

Fee A processing fee of 0.5% of the loan amount applied for i.e. Rs. 5 per Rs. 1000 of the loan applied for is payable when the application form is submitted to HDFC. This fee is in respect of costs incidental to the application.

For example : Loan applied for Rs. 20,000

Fees Rs. 100

Rs. 1,00,000

Rs. 500

On approval of the loan, a loan offer is made to you. On acceptance of the offer, you will have to pay an administrative fee of 0.5% of the loan approved. You can also pay the processing and administrative fees upfront i.e. 1% of the loan at the time of submission of the loan application itself. Rate of Interest Adjustable rate of Interest The interest rate on your ARHL is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate of interest is revised every three months from the date of first disbursement, if there is a change in RPLR. However, the EMI on the ARHL will not change. For instance, if the interest rate increases, the interest component in EMI will increase; the principal component would reduce, resulting in an extension of the term of the loan and vice-versa when the interest rate decreases. customer will be provided with an annual statement indicating the details of the interest and principal payments made during the year. Annual Rest Option Term of Loan (No. of Years) 1 – 20 Monthly Rest Option Term of Loan (No. of Years) Upto 5

Rate Per Annum (%p.a) 8.00 Rate Per Annum (%p.a) 9.00

6 - 10

9.25

11 – 20 9.75 Rate of interest under ARHL is linked to HDFC's RPLR (Retail Prime Lending Rate) which currently is 8.00% per annum. customer repay the loan in EMIs comprising principal and interest. Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called

pre-EMI interest .

EMI per Rs.1,00,000 for Annual Rest

Option Term of loan (No. of years) 20 EMI per Rs.1,00,000 for Monthly Rest

Rupees 979

Option Term of loan (No. of years) 5 10 20 There is no early

redemption charge

Rupees 2,076 1,281 949 on repayment of a loan ahead of

schedule. Fixed rate of interest The current applicable

fixed rate of interest

in respect of the total loan

approved is are as follows: Annual Rest Option Term of Loan (No. of Years) Upto 5

Rate Per Annum (%p.a) 9.25

6 - 10

9.25

11 – 20 Monthly Rest Option Term of Loan (No. of Years) Upto 5

9.75

6 - 10

9.50

11 – 20 You repay the loan in

Rate Per Annum (%p.a) 9.25

9.75 Equated Monthly Instalments

(EMIs) comprising

principal and interest. EMI per Rs.1,00,000 for Annual Rest Option Term of loan (No. of years) 5 10 20 EMI per Rs.1,00,000 for Monthly Rest Option Term of loan (No. of years) 5 10 20

Rupees 2,157 1,313 963

Rupees 2,088 1,294 966

Pending final disbursement, customer pay interest on the portion of the

loan disbursed. This interest is called An early redemption

pre-EMI interest .

charge of 2% of the amount being prepaid is

payable on repayment of a loan ahead of schedule. How to Apply customer can either download (in a pdf format) the application form or, get the application form by email or normal mail. Alternately, customer can collect the application forms from any of your nearest HDFC Offices. customer need to submit it along with supporting documents and the processing fees at any HDFC office that is convenient to the customer. customer can make payments by cheque marked "Payee's account only" drawn on a bank in a city where HDFC has an office, by demand draft (payable at par to HDFC) or by cash. Customer can make an application at any time after they have decided to acquire a house, even if the house has not been selected or the construction has not commenced. HDFC will consider your application, make enquiries as it deems necessary and convey its decision to you. On approval of the loan, a loan offer is made to you. On acceptance of the offer, you will have to pay an administrative fee for the loan approved. customer can take disbursement of the loan after the property has been technically appraised, all legal documentation has been completed and you have invested your own contribution in full (Own contribution is the total cost of the property less HDFC's loan). The loan will be disbursed in full or in suitable instalments (normally not exceeding three in number) taking into account the requirement of funds and progress of construction, as assessed by HDFC and not necessarily according to a builder's agreement. Supporting Documents to be attached For approval of loan a) Common for all applicants:

:

1. Allotment letter of the co-operative society / association of apartment owners. 2. Copy of approved drawings of proposed construction / purchase. 3. Agreement

for

sale/sale

deed/detailed

cost

estimate

from

architect/engineer for the property to be purchased / constructed. 4. If you have been in your present employment / business or profession for less than a year, mention details of occupation for previous 5 years, giving position held, reasons for change and period of the same. 5. Applicable Processing Fees. 6. Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the case. b) Additionally, If You Are Employed: 1. Latest salary slip/salary certificate showing all deductions. 2. If

job is transferable, permanent address where correspondence

relating to the application can be mailed. 3. A letter from employer agreeing to deduct the monthly instalment towards repayment of the loan from the salary. This will expedite the processing of your loan application.

If You Are Self-Employed: 1.

Balance

Sheets

and

Profit

&

Loss

Accounts

of

the

business/profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant. 2.

A note giving information on the nature of form of organisation, clients, suppliers, etc.

business/profession,

IDBI BANK IDBI, the tenth largest development bank in the world has promoted world class institutions in India. A few of such institutions built by IDBI are The National Stock Exchange (NSE), The National Securities Depository Services Ltd.(NSDL), Stock Holding Corporation of India (SHCIL) etc. IDBI is a strategic investor in a plethora of institutions which have revolutionized the Indian Financial Markets. IDBI promoted

idbi bank to mark the formal foray of the IDBI Group into

commercial Banking. This initiative has blossomed into a major success story. idbi bank , which began with an equity capital base of Rs.1000 million (Rs.800 million contributed by IDBI and Rs.200 million by SIDBI), commenced its first branch at Indore in November 1995. Thereafter in less than seven years the bank has attained a frontranking position in the Indian Banking Industry. idbi bank successfully completed its public issue in February 99 which led to its paid-up capital expanding to Rs.1400 million. The promoters holding consequent to this public issue stood reduced to 71% with IDBI holding 57% and SIDBI 14% of the paid up capital of IDBI Bank. This is in line with the requirement of RBI which stipulates that eventually the promoters holding should be brought down to 40%. The Bank The birth of idbi bank took place after RBI issued guidelines for entry of new private sector banks in January 93. Subsequently, IDBI as promoters sought permission to establish a commercial bank and retained KPMG a management consultant of international repute to prepare the groundwork for establishing a commercial Bank. The Reserve Bank of India conveyed it's in principle approval to establish idbi bank on February 11th, 1994. Thereafter the Bank was incorporated at Gwalior under Companies Act on 15th of September 1994 (Registration No. 10-08624 of 1994) with its Registered Office at Indore.

The Certificate for Commencement of Business was received on 2nd of December 1994. Management Team - The Core Strength of The Bank Since August 2000

idbi bank has witnessed a transformation in the top

management structure with top talent from foreign banks and private banks coming together to create a world-class management team. Mr Gunit Chadha joined

idbi bank as its Managing Director & CEO after

spending 16 years with Citicorp in New York and India, on 22nd August 2000. He laid out the bank's immediate priorities, amongst them being building up a performance driven customer focused organization. Existing talented people within the bank were re-aligned to a functionally driven Product & Sales organizational structure. Also, to align employee interests with shareholder interests founder Stock Options (ESOPs) in October 2000 covering 75 % of the existing employees of

idbi bank were

distributed. Key recruits into the top management team were: In January 2001, Janak Desai joined in as Country Treasurer after an outstanding innings at Standard Chartered Bank and ABN Amro. In February 2001. Ajay Bimbhet joined as Head-Retail Banking to lead retail banking at

idbi bank . Ajay comes after a strong and brilliant 25

year career at ANZ Grindlays. In December 2000, Neeraj Bhushan Bhai joined

idbi bank as the Chief

Technology Officer. Neeraj has been a major success story in the assignments handled by him earlier as Chief Information Officer of Sharekhan.com and Chief Technology Officer of ICICI Infotech in their technology initiatives.

In April 2001, Subramanian Kumar joined

idbi bank

as Head -

Operations after earning accolades during his stint at Standard chartered Bank, Dubai and previously at HDFC Bank. In May 2001, Ulhas Deshpande joined as Head - HRD. He has more than 18 years of rich human resource experience, of which over 10 years has been in heading the HR function in premier organizationsHindustan Ciba Geigy, Merind, Parke Davis and most recently as HeadHR at Tata-AIG. In August 2001, Susheel Kak joined as Head - Corporate Banking after a 25 years of varied banking experience in SBI and Deutsche Bank in Singapore and India. Idbi bank is growing at a very fast pace. Recently, the no. of employees have crossed 1000 mark from 777 employees as on 1st April 2001 and it is expected to cross 1200 by the end of this financial year. The Bank also has a state-of-the-art training centre at Belapur and every employee receives on an average at least 40 hours of training in a year. Technology and Tech Initiatives Keeping in line with its policy of leveraging technology to drive its business, idbi bank deployed Finacle, the e-age banking solution from Infosys to consolidate its position, meet challenges and quickly seize new business opportunities. Entire Finacle rollout was remarkable considering the fact that it was implemented across all branches in a record time-frame of 5 months. Finacle will provide the critical technology platform to propel the bank's new thrust and direction. The bank has also implemented Kondor+ - a treasury Front Office software from Reuters and ITMS- treasury back office software from Synergy

Login.

consistent with

Achievement

of

these

significant

milestones

is

idbi bank 's continued focus to create customer and

shareholder value through deployment of superior technology.

Investments in technology is part of the plan to put in place building blocks for creating the right organisational infrastructure which will help idbi bank in consistently delivering superior products, convenient access channels and efficient service to our retail and corporate customers. Of the total investments of over Rs. 75 crs, large investment has been made in back-end technology to strengthen processes, systems and control. This, in the long run, propelled by a top quality management team will clearly set

idbi bank apart from its competitors.

Strategic Retail Initiatives idbi bank in the previous calendar year initiated its formal foray into retail banking.

idbi bank 's depository services product E-Sec is a major

success story and the bank today is in the top three league in India in this segment. A spate of retail products were introduced such as home finance, loans against shares, educational loans, car loans, Sweep in account, SMS/WAP mobile banking etc. on very competitive terms. Retail Bank has acquired software for its Retail Assets products. Also, on its way is Internet Banking with Bancaway, from Infosys.

idbi bank

has recently launched its upgraded, state-of-the-art telebanking product across 17 centres with latest software from BK Systems. Mobile banking (WAP/SMS)

from

Hexaware,

which

is

mobile

service

provider

independent, launched during FY01. We have also migrated to an Open Architecture "Oasis" ATM Switch capable of providing features like Bill Presentation Payment and personalised messaging. The bank has recently announced its strategic alliance with TATA AIG General Insurance Company for selling General Insurance Products through select branches & ATMs of

idbi bank .

The bank announced a landmark strategic alliance to make available widely, both organisations' products through each others' distribution

channels. Now you can buy coveted savings Products like the National Savings Certificates and Kisan Vikas Patra on Internet . The New products which are going to be announced shortly are Credit Cards, Debit Cards etc. Idbi bank

is continuously looking for ways to leverage its technical

strengths and bring to the retail customer convenience products at reasonable cost. Corporate Banking and Credit Idbi bank

has launched its Cash Management Services in the 2nd

quarter of FY02 with powerful software from Cash Teck. The bank has also invested in Credit Rating System software from CRISIL to strengthen its corporate risk assessment mechanism. This goes live from the first quarter of 2001-2002. Morevover, the bank is in the process of investing in more back-end systems for Fixed Assets, Payables, FTP and ALM.

Stronger Capital Adequacy Capital Adequacy ratio of

idbi bank is well above the RBI norm of 9%

and as on 30th June 2001 stood at 12.01%.--> idbi bank has adopted Governance standards based on best practices prevalent internationally. It has a structure of governance which meets with the requirements prescribed by the Kumarmangalam Birla panel and fully meets the recommendations by internationally acclaimed and recognised norms of governance addressed by the Cadbury, Greenbury and Meryn King committees.

Employee Contribution idbi bank has more than 1000 talented and highly motivated employees as on date. The average age of the employee at

idbi bank is 31 yrs.

85% of the employees are MBAs/CAs/ Professionally Qualified Bankers. The bank has rolled out broad based grant of stock options covering 75% of the employees to align their interests with those of its shareholders. Buying a home of one's own is every individuals first stop in life. . Which is precisely why, we at

idbi bank , have pulled out all the stops to sew

together a home loan product that has flexibility as its very foundation. Bank have created a product that is competitively benchmarked, that is amply affordable and one that is customer-sensitive. Only because when it comes to buying a house, the first thing customer need to do is to feel at home with their bank.

IDBI Bank Home Loans

Buying a home of one's own is every individual's first stop in life. Which is precisely why, we at IDBI bank have pulled out all the stops to sew together a home loan product that has flexibility as its very foundation. We have created a product that is competitively benchmarked, that is amply affordable and one that is customer-sensitive. Only because when it comes to buying a house, the first thing you need to do is to feel at home with your bank.

:: Is the interest rate fixed for the complete tenure of the Loan? IDBI bank offers you only Floating rate home loans Under the floating rate option, interest rate varies from time to time, increase or decrease as applicable.

Interest Rate Chart (Floating Rates) Salaried Self Employed Tenure (Years) Interest Rate (p.a.) Interest Rate (p.a.) upto 5 7.50% 7.75% 10 7.50% 7.75% 15 7.50% 7.75% 20 7.50% -

:: Eligibility: The bank will decide the loan amount based on your repayment capacity taking into consideration factors such as your income,age,qualifications, number of dependants, spouse's income, assets, liabilities,savings history, stability and continuity of occupation etc. however, the maximum loan amount shall not exceed 85 per cent of the cost of property which includes costs of property which includes costs towards registration, stamp duties, amenities, utilities as applicable.

Eligibility Criteria Salaried Self Employed Min 24 yrs Min 24 yrs Age Limit Max 58 yrs Max 65 yrs 2 Lakhs Min 2 Lakhs Loan Amount Min (Rs.) Max 3 Cr. Max 3 Cr. Income p.a. Net Busi 1.00 Gross 1.20 Lakh (Rs.) Income Lakh Minimum Work 2 yrs 2 yrs Experience

Other Charges MOF NIL Charges Admin Charges NIL (upfront) PrePayment NIL (floating) Guarantor NIL Processing 0.75% Charge

:: Types of loans You can avail home loans for constructing a house, purchasing a ready built house / flat, residential plot and even for refinance of the existing home loans you may have availed from other banks or housing finance companies. :: Can customer repay the loan ahead of schedule? Yes, customer can repay the loan ahead of schedule in part or in full, in event of part payment you have an choice to reduce the tenure or installment as the case may be, prepayment fees will be levied as per the policies of the bank. :: What is the tenure of the Loan? You can repay the loan over a maximum period of 15 years. Repayment will not ordinarily be extended beyond the age of retirement (if you are employed ) or on your reaching 65 years of age whichever is earlier. However IDBI bank will endeavor to determine the repayment period to suit your convenience. *The above information is computed from publicly available sources. Whilst all care is taken in its compilation, Times Online money Ltd is not responsible for any errors or mistakes therein.

Advantage Interest Rate on Monthly Reducing Balance Home Loan services at Door Step Simple Documentations Personalized Service Legal and Technical Assistance

Housing Loan Rates :

Floating rate loans have been institutionalized as the standard offering, making it simple for new customers to benefit from favourable interest rate changes in the future too. SL# Tenure (yrs)

Rate of Interest

EMI per Lac

Upto 5years 6 - 10 years 11 – 20 years

* 9.25 % 9.75% 10.00%

2088.00 1308.00 982.00

Pre-payment Fees Pre-payment Fee of 2% on principal outstanding if the prepayments are through institutional / HFC s Cheque / pay order.In case of customer premature closing his home loan account with his own funds no prepayment will be levied

STANDARD CHARTETRED BANK Standard Chartered is the world's leading emerging markets bank. It employs 27,000 people in over 500 offices in more than 50 countries in

the Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom and the Americas. The Bank serves both Consumer and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, and deposit taking activity and wealth management services to individuals and medium sized businesses. The Wholesale Bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending, foreign exchange, interest rate management and debt capital markets. With nearly 150 years in the emerging markets the Bank has unmatched knowledge and understanding of its customers in its markets. Standard Chartered recognises its responsibility lies to its staff and to the communities in which it operates. Today-Standard Chartered Today Standard Chartered is the world's leading emerging markets bank employing 30,000 people in over 500 offices in more than 50 countries primarily in countries in the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas. The new millennium has brought with it two of the largest acquisitions in the history of the bank with the purchase of Grindlays Bank from the ANZ Group and the acquisition of the Chase Consumer Banking operations in Hong Kong in 2000. These acquisitions demonstrate Standard Chartered firm committed to the emerging markets, where they have a strong and established presence and where they see their future growth. At Standard Chartered they are committed to the communities and

environments in which they operate. Their Operations are focused on the emerging markets and they believe that with appropriate policies and practices in place they can be a legitimate influence for good by promoting the highest standards of responsible business. HOME SAVER FROM STANDARD CHARTERED BANK: •

A revolutionary home loan that gives the customer the potential to save thousands of Rupees in interest on home loan.

•

Lets the customer make additional deposits to reduce the loan outstanding, without any penalties.

•

Lets use the surplus funds in the account to invest when the right opportunity arises.

•

Finally, a home loan that easy access to surplus funds every day, 24 hours a day through a globally valid ATM-cum-Debit card

At Standard Chartered, recognize that owning a home is a very important goal, and probably the largest investment in a lifetime. That's why the company has created Home Saver. Home Saver is a revolutionary new concept in home loans designed to save interest thereby letting to pay off loan faster. Here's how one can enjoy the Home Saver advantage Every month, all the customer need is to do is deposit surplus funds, be it there salary or other savings into Home Saver, instead of letting them lie idle in different accounts. All this money then works towards reducing there interest payable because the deposits automatically reduce the balance outstanding on which the interest is calculated on a daily basis. So, more the number of days one place into HomeSaver, greater is the interest saving! What's more, the customer continue to have total access to these funds 24 hours a day through the globally valid ATM-cum-Debit card!

Unique Features •

Freedom to save more

•

Freedom to reduce your loan period

•

Freedom to take a break from EMI payments

•

Freedom to access your money - anytime, anywhere

HomeSaver is currently available in Bangalore, Chennai, Delhi, Kolkata, Mumbai and Pune. All the customer have to do is to call Phone Banking or contact us at any of their branches and they'll assist you with a better understanding of the products and in taking care of the formalities. Still deciding which home loan to take? Choose the one that sets free. •

Terms, conditions and RBI regulations apply. All loans at the sole

discretion of Standard Chartered Bank. Freedom to save more With HomeSaver, there is more to save than a normal low-cost home loan. Because interest is calculated on daily balances, customer can reduce interest cost substantially even if surplus savings are in the account for only a day. For each day that outstanding balance reduces, one pay less interest for that day. Since that's interest saved not earned, customer save on taxes that would otherwise pay on interest earned! HomeSaver gives the flexibility and freedom to make excess payments so that you can reduce the duration of your loan anytime, without penalties. Only HomeSaver gives you the flexibility to defer your EMI payment. So if at any time, you are faced with an emergency and find it difficult to

pay EMI, customer can take a payment holiday* once every year- after the first year without any penalty. You have the flexibility of depositing and withdrawing cash just as you would with your normal bank account. HomeSaver comes with a globally valid ATM-cum-Debit Card, which allows you free* access to your money from over 2000 ATMs across the country. Anytime, anywhere. That's not all, customer also get a personalized cheque book, Phonebanking and Internet banking - to add to the convenience of banking with us. The product is a combination of home loan and bank account that helps reduce the interest and tenure of the loan.

HomeSaver allows the

customer to pay back the home loan principal by utilising the excess funds in the HomeSaver account. This reduces the overall interest payment and the tenure of the loan. The product allows customers to pool their salary, savings and surplus funds lying in other accounts into HomeSaver that goes towards reducing the balance principal outstanding. Since the interest is calculated on daily outstanding balance, every rupee kept in HomeSaver each day goes towards prepaying the loan that helps the customers pay back the loan faster and save substantial interest. One of the key benefits of HomeSaver is that customers need not consciously work towards making partial prepayment to reduce interest on the loan. All deposits and excess money lying in HomeSaver account would automatically be used to reduce the balance outstanding. At the same time, customers would continue to enjoy the flexibility and liquidity of a normal bank account. Further, the customers also enjoy the privilege of taking a payment holiday on their equated monthly instalment (EMI) once a year after the first year for any loan taken under HomeSaver.

This would allow the customer the flexibility to tide over a tight financial situation without having to pay a penalty for skipping an EMI. "This is a feature again unique to HomeSaver and not provided by any traditional home loan,". HomeSaver offers an opportunity to maximise savings whilst providing flexibility

and

convenience

to manage

personal

finances

more

efficiently. Customers can pool their salary, savings and surplus funds lying in other accounts ultimately reducing the balance principal outstanding. As the interest is calculated on a daily outstanding balance, funds kept in the account go toward pre-paying the loan, rather than the interest component, helping customers pay back faster and save substantial interest, the bank claims. The HomeSaver account further offers the same liquidity and flexibility of a normal bank account and comes with an ATM - cum- debit card and chequebook facility. A customer can save up to 43 per cent or more on the interest component depending on the deposits maintained by him in the account. Loans from other institutions can be balance transferred to this account at a cost of 1 per cent of the outstanding loan amount

:: Flexible Interest Rates You can choose between fixed and floating rates of interest. You can also shift between the two options during the loan period

Interest Rate Chart (Floating Rates) Salaried Tenure (Years) 5 10 15 20

Interest (p.a.) 7.50% 7.50% 7.50% 7.50%

Interest Rate Chart (Floating Rates) Self Employed Tenure (Years) 5 10 15 20

Interest (p.a.) 7.50% 7.50% 7.50% -

Other Charges MOF Charges NIL Admin Charges NIL (upfront) Pre-Payment (floating) NIL Guarantor NIL Processing Charge 0.50-1%

:: Options to suit your needs Amount and Tenure Only Loans for Homes offers you the options and flexibility to choose the loan that's just right for you. Consider the 85% finance options for construction renovation and extension. Or the largest loan amount of Rs 1 crore. And a loan period of up to 15 years. A look at the table will tell you how much you can benefit from Loans for Homes.

Loan Self - construction Home renovation Home extension Home Buying

Loan to Value (up Upper Limit of Loan to) (Rs) 85% 1 crore 85% 25 Lakhs 85% 1 crore 85% 1 crore

Max. Tenure of Loan (Yrs) 20 15 15 20

:: Eligibility:

Age Limit Loan Amount (Rs.) Income p.a. (Rs.) Minimum Work Experience

Eligibility Criteria Salaried Min 23 yrs Max 58 yrs Min 6 Lakhs Max No Limit Gross

Self Employed Min 23 yrs Max 65 yrs Min 6 Lakhs Max No Limit Net Busi 1.32 Lakhs Income 1 Lakh (p.a.) 3 yrs 3 yrs

•

Finance up to maximum of 85% of the price of property or the cost of construction is provided.

•

Applicant should be buying a house and must be residing with in the city limits of areas where Standard Chartered operates.

:: Types of loans Standard Chartered Grindlays offers you the worlds most complete home loan Loans for Homes. You can avail of a loan for any of the following purposes: 1) Buying a home under construction 2) Purchasing a constructed home 3) Constructing a home on a plot of land owned by you or your spouse 4) Extending your existing home 5) Renovating your existing home

:: Loan repayment Determining Repayment Capacity Your repayment capacity is assessed by considering your age, income, assets, liabilities and employment. Your co-applicant's income can also be considered towards repayment of loan. Repayment of Loan Repayment of your loan will be in Equated Monthly Installments (EMIs), comprising principal and the interest. The (EMIs) will commence from the month following full disbursement. The EMIs are payable every month and the date of payment depend on the date of final disbursement. Postdated cheques towards the EMIs will be collected at the time of disbursement.

:: Sanction and disbursal Sanction Process You can count on us to get to work as soon as you submit your application with all the required documents. You will hear from us much earlier than you expect! All loans however, are at the sole discretion of Standard Chartered Grindlays. Disbursal Requirements Your loan will be disbursed after: a) You have submitted all the necessary documents as prescribed by the Bank b) The Bank has obtained legal opinion from its solicitors that the title to your property is clear, marketable and free from encumbrances. c) A satisfactory valuation report is received from the Banks approved valuers. Disbursal of Loan The loan amount will be disbursed directly to the seller of your home/plot of land, once the bank approves your proposal. In case the construction / extension/renovation of your home is in progress, the amount will be released in tranches of Rs.50,000 based on the stage of completion.

:: Get your loan before locating your property

Customer can get your loan approved even before you have selected your

property, based on your income. This approval will help you decide your budget and plan your finance better. However, final disbursal will depend upon the property selected. *The above information is computed from publicly available sources. Whilst all care is taken in its compilation, Times Online money Ltd is not responsible for any errors or mistakes therein.

ABN-AMRO BANK

Corporate Overview Mortgage.com is the website to go to for mortgages from ABN AMRO, which is one of the world’s top international banks. Its history dates all the way back to 1824. It is a publicly traded company on multiple worldwide exchanges. Through their commercial units, they have over 15 million customers worldwide. They have over 3000 branches around the world in over 60 countries. LaSalle Bank and Standard Federal are the two banks under the ABN AMRO family in the United States. LaSalle Bank is based out of Chicago, Illinois. They are in control of over 58 billion dollars in assets. They are one of the top banks in the Midwest. Standard Federal Bank history dates back to the late 1800’s. They are the top mortgage lender in Michigan. They are in control of close 50 billion dollars in assets and have over 250 branches across Michigan and Indiana. Combined, LaSalle Bank and Standard Federal offer a huge assortment of financial services to both consumers and businesses alike. This includes commercial banking, consumer banking, online services, mortgages, checking, savings, money market, CD’s, investments, insurance, and wealth management. Combined, they offer their consumers a wide assortment of mortgage programs and services. This includes fixed rate loans, and adjustable rate mortgages. LaSalle Bank and Standard Federal allow you to apply on the phone, in person, or by mail. They currently do not offer online applications through their main sites but through the ABN AMRO mortgage site, they do offer you the ability to apply online.

Company Profile

ABN AMRO is one of the world's top international banks with over 15 million customers worldwide. The bank has 3000 branches around the world in over 60 countries. In the US, both LaSalle Bank and Standard Federal are subsidiaries of ABN AMRO. LaSalle Bank is based out of Chicago, Illinois. They are in control of over 58 billion dollars in assets. They are one of the top banks in the Midwest. Standard Federal Bank history dates back to the late 1800?s. They are the top mortgage lender in Michigan. They are in control of close 50 billion dollars in assets and have over 250 branches across Michigan and Indiana. Combined, LaSalle Bank and Standard Federal offer a huge assortment of financial services to both consumers and businesses alike. This includes commercial banking, consumer banking, online services, mortgages, checking, savings, money market, CD? s, investments, insurance, and wealth management. ABN AMRO also owns and operates the US based Mortgage.com website. Through this website they offer their consumers a one of a kind mortgage program called Guaranteed OneFee Mortgage. So instead of worrying about all of the different fees you can have when taking out a mortgage, they take that stress out of the equation for you. In addition, they make the mortgage process very easy for the consumer and allow them to apply online. They clearly display all of the mortgage rates and have a great education center that includes calculators and a home buying guide.

ABN Amro Ratings Overall Experiences Customer Service Application Process Rate Competitiveness Fee Structure

1.00 of 5 1.00 of 5 1.00 of 5 1.00 of 5 1.00 of 5

Independantly OUTLOOK MONEY date 15/sept./2004 published a product rating where the ABN AMRO All Smiles Home Loan has been rated as the best product suite amongst the MNC Banks in India.

Home Loans

Enjoy Flexible Home Loans Schemes and Huge Savings! Now you can take a home loan for any term and any amount, and enjoy huge savings on your interest rate as well! Is it possible? All Smiles Home Loans” Super Saver Packages from ABN AMRO Bank! ABN AMRO Bank offers 3 kinds of Super Saver Packages: Scheme: Super Saver Packages 2 Yrs. Super 8% for first 2yrs. There after the then Prevailing Floating Saver Rate @ HPLR+50 Basis Points. 3 Yrs. Super 8.25% for 1st 3 yrs. There after the then Prevailing Saver Floating Rate @ HPLR+50 Basis Points. 5 Yrs. Super 8.5% for 1st 5 yrs. There after the then Prevailing Saver Floating Rate @ HPLR+50 Basis Points.

CAREERS

With a global team of over 110,000 staff, ABN AMRO is committed to recruiting high-calibre individuals who have the knowledge, experience and expertise to fulfil the Organisation's Strategic Objectives. Developing our people and rewarding them for excellence are essential to our continued success in being able to maximise client service and bring about customer delight!

LOANS ABN-AMRO OFFERED  Personal loans  Line of Credit  Home mortgage  Debt Consolidation  Business Loans  Credit Cards  Life Disability state Consolidation Group

Personal Loans A personal loan can be the right borrowing solution for many purchases and

major expenses, especially if you don’t own a home or don’t want to tap into your homes equity

Line of Credit State Consolidation Group line of credit offers convenient credit options that can give you comfort of knowing you have access to money when you need it no matter what the reason may be.

Home Mortgage Considering State Consolidation Group for your home mortgage weather you are a first time buyer or refinancing our interest rates are unbeatable and that’s a fact.

Debt Consolidation IAre the most common program@ State Consolidation combining all your bills into one low monthly payment and settle with creditors and get your credit back on track.

Business Loans Weather it be your dream to start your own business, invest in a business or just to expand on your business State Consolidation Group will make that dream come true.

Credit Cards 25% of the people in the United States have problems with just getting their credit started due to not having any credit (high risk) State Consolidation Group can help you establish your credit with a secured credit card. During a 6 month period with no late payments you will have enough credit to do anything possible.

Life Disability State Consolidation Group Insurance is a type of policy that pays off outstanding credit balance in event of your death. It is an ideal way for you to eliminate debt that would reduce the value of your estate or would have to be paid by family members.

PERSONAL LOANS FROM ABN-AMRO BANK Money for any purpose. This is what personal loans are for. Use the loan amount for buying your favourite music system or take your family on a holiday or for a more long term purpose like buy a computer for your child. And getting it is quite easy. A salary slip, proof of personal identity and signature will be enough. ABN AMRO Bank offers personal loans to salaried and Self-employed. ABN Amro bank personal loan for self employed doctors is available in the following cities: Mumbai, Delhi, Calcutta, Chennai, Pune and Baroda.

SALARIED For salaried persons, ABN Amro bank has two categories of eligible employers on which a person is given loan and the eligibility varies, Category A and Category B.

SELF- EMPLOYED PROFESSIONALS ABN Amro bank has the most comprehensive list of approved self employed professionals. Find out your loan amount.

SPECIAL ABN-AMRO PROGRAM ABN Amro bank has certain special programs designed for the convenience of customers, for example if you are a credit card owner, and would like to avail personal loan to offset your credit card liability, then ABN has such a program just for you. Also ABN has special programs for its existing customers wherein they can avail of a lower rate of interest. .

COMPARISON OF BANKING FACILITIES :: Bank Facilities

Phone Banking

Net Banking

ATM

Mobile Banking

HDFC Bank ICICI Bank Standard Chartered Bank Global Trust Bank IDBI Bank UTI Bank Citibank Centurion Bank

*

Locker

HSBC ABN - Amro Bank

COMPARISON OF INTEREST RATES OF DIFFERENT BANKS Home Loans Rate Comparator Name of Fixed Floating Tenure Prepayment Foreclosure the Processing Fee (yrs) ROI (%) EMI ROI (%) EMI Fee Charges Institution 8.0 5000/- +10.2% If Pre-payment 5 (for 1st 3 31337 7.25 19920 ST* is yrs) made from 8.0 5000/- +10.2% own 10 (for 1st 3 31337 7.25 11741 ST* sources its NIL yrs) HSBC 2%* 8.0 5000/- +10.2% If Pre-payment 15 (for 1st 3 31337 7.25 9129 ST* is yrs) made from 8.0 5000/- +10.2% other 20 (for 1st 3 31337 7.25 7904 ST* HFI's its 2% yrs) Standard 20038- 0.5% - 1.00% + If Pre-payment 2%* 5 8.0 20277 7.5 - 8.0 Chartered 20277 10.2% ST* is Bank 11871- 0.5% - 1.00% + made from 10 8.0 12133 7.5 - 8.0 12133 10.2% ST* own 15 8.0 9557 7.5 - 8.0 9271- 0.5% - 1.00% + sources its NIL 9557 10.2% ST*

20

8.0

8365

Entire tenure

8.5% 8.75%

8679 – 8838

7.25 8.25

HDFC Money Market

5

10 IDBI Bank 15

20

CitiBank

7.5 - 8.0

5

7.5% 8.25%

8 - 8.25 (for 1st 3 yrs) 8.5 (for 1st 5 yrs) 8 - 8.25 (for 1st 3 yrs) 8.5 (for 1st 5 yrs) 8 - 8.25 (for 1st 3 yrs) 8.5 (for 1st 5 yrs) 8 - 8.25 (for 1st 3 yrs) 8.5 (for 1st 5 yrs) 8.0

8056 – 8521

80568365

0.5% - 1.00% + 10.2% ST* If Pre-payment is made from In fixed ROI, prepayment charges will be 2% of principal outstanding amount In floating ROI, after 1 7904 - 0.5% +10.2% year of taking 8521 ST* loan, there will be no charges, but if it is a refinance case, then it will be 2% of principal outstanding amt

313377.75-8.0 31452 (loan 20157above 20277 20517 15 lacs)

0.5% +10.2% ST*

31337- 7.75-8.0 31452 (loan 12002above 12133 20517 15 lacs)

If Pre-payment is 0.5% +10.2% made from ST* own sources its NIL 2%*

313377.75-8.0 31452 (loan 9413– above 9557 20517 15 lacs)

0.5% +10.2% ST*

313377.75-8.0 31452 (loan 8210– above 8365 20517 15 lacs)

0.5% +10.2% ST*

20277

7.5

2%*

If Pre-payment is made from other HFI's its 2%

20038 0.25% after file If Pre-payment booking is +10.2% ST* made from

2%*

ICICI Home Finance Co. Ltd

10

8.0

12133

7.5

11871

15

8.0

9557

7.5

9271

20

8.0

8365

7.5

8056

5

8.5

20517

8.0

20277

10

8.5

12399

8.0

12133

15

8.5

9848

8.0

9557

20

8.5

8679

8.0

8365

5

8.5

20517

8.0

20277

10

8.5

12399

8.0

12133

State Bank of India

2%*

2%* 20

5

Kotak Mahindra Bank

0.25% after file own booking sources its NIL +10.2% ST* 0.25% after file If Pre-payment booking is +10.2% ST* made from 0.25% after file other booking HFI's its 2% +10.2% ST* 0.5% +10.2% If Pre-payment ST* is 0.5% +10.2% made from ST* own 0.5% +10.2% sources its NIL ST* If Pre-payment is 0.5% +10.2% made from ST* other HFI's its 2% 0.5% +10.2% If Pre-payment ST* is 0.5% +10.2% made from ST* own sources its NIL

10 15 20

8.5

7.5 - 7.75 (for 1st 3 years) 7.5 - 7.75 (for 1st 3 years) 7.5 - 7.75 (for 1st 3 years) 7.5 - 7.75 (for 1st 3 years)

8679

8.0

8365

0.5% +10.2% ST*

If Pre-payment is made from other HFI's its 2%

20038199207.25-7.5 20157 20038

0.5% + 10.2% Lock-in period Service Tax = 6 months

11871117417.25-7.5 12002 11871

0.5% + 10.2% Service Tax

927191297.25-7.5 9413 9271 805679047.25-7.5 8210 8056

25 % of the principal outstanding 0.5% + 10.2% can be repaid Service Tax without penalty every 6 0.5% + 10.2% months. Service Tax

ST*-service tax For HSBC and for Kotak Mahindra Banks, the EMIs have been calculated for the fixed rates for the first 3 yrs only and not for the entire loan tenure. The above information is computed from publicly available sources. Whilst all care is taken in its compilation, Apnaloan is not responsible for any errors or mistakes therein. The rates are on Monthly Rest basis.

2%*

The effective interest rate does not include other charges given above. Banks/HFCs have several special schemes depending on your employer, credit profile etc. Which be different from the above. Please contact the banks for further details.

Special features of product offerings: Standard Chartered ANZ has launched the Home Saver Account . Along with the Home Loan, your will get a FREE savings bank account into which you may deposit your monthly salary. The EMI for the loan will be automatically reduced from your account. The excess balance in your savings account will earn interest that will be adjusted against your future EMI payments. The bank claims that the effective interest rate gets reduced by upto 45% because of this scheme.

Citibank offer loans with no guarantors. Most banks require that you present a guarantor who will back you up if you default on your loan repayment. It can often be embarrassing to ask friends to stand guarantor as most banks do not accept relatives as guarantors. Citibank gives home loans upto 90% of the property value, the highest from any bank ( only Tata Hsg Fin. matched this offer) Citibank offers a flexi-savings account to reduce your cost of borrowing. The bank will automatically open a Saving Account from which you can give standing instructions to deduct the EMI payments for the loan. You can then prepay the loan at any point in time and be given instant credit for the same, in case you get a large lump-sum annual bonus from your employer. Should you require money in an emergency at any point you can avail of a over draft on this savings account at an interest rate that is the same as that on your Home loan. This works out much cheaper than taking an over draft on a normal savings account

Dewan Housing Finance and LIC Housing Finance Ltd. offers consumer loans to their existing Home Loan customers at a discount to market rates. The customer has to be a housing loan borrower for the period not less than 6 month with a good repayment record FREE DOUBLE PROTECTION PLAN in the form of Personal Accident Risk Cover and Property Insurance

GIC Housing Fin. gives a free personal accident cover along with the loan. Oriental Bank of Commerce has started to offer a free property insurance cover of the value of property and a free accident cover of upto Rs. 5 lacs. GICHFL gives Consumer loans for purchase of home equipment at the same interest rate as the home loan to customers at rates of interest that are the lower than other consumer loans. The total loan amount including the housing loan can be upto 90% of the value of the home. The tenure of the consumer loan is restricted to 5 years.

HDFC offer Flexible (Customised) Repayment Schemes, keeping in mind the fact that each individual has a unique problem requiring unique solutions, HDFC has developed various repayment options like Step Up Repayment Facility, Flexible Loan Instalment and Balloon Payment Scheme Pari Passu/ Second Mortgage Arrangements: HDFC has a tie-up with a large number

Safe Document Storage Facilities: HDFC has state of art storage facilities, which are theft and fire proof, at various locations where loan and property documents are stored. In this way valuable documents are stored safely over the period of the loan and are released almost immediately after a customer repays his A customer, after availing of a loan can approach HDFC anytime thereafter to increase the Equated Monthly Instalment which will help him repay the loan faster. Home Conversion Loan offered to its existing customers who are interested in moving to a new house Through this scheme customers can apply to have their existing loan transferred towards the purchase of the new home. Customers may also apply for an additional loan amount . for the purchase of the new house. This gives the customer the option of selling their existing house, if they wish to, without having to repay their old loan The fixed rate loan can be converted to floating without any penalty charges. However, you will be charged 2% if you refinance the loan from another company

Hudco will waive the last 2 EMI payments on the loan if the customer has a perfect repayment record with no bounced cheques. The loan amount initially taken must exceed Rs. 5 lacs and no prepayments where to have been made during the tenure of the loan. This is not available for the Floating rate loan. There is a discounted start-up fee for Government employees. The Administrating fees stand reduced from 0.7% to 0.5% only. Free triple insurance - property cover, earthquake cover and personal accident cover. given free along with the loan ( not available for the Floating rate loan) You can prepay the entire loan in any year without any prepayment penalty. Each prepayment has to be atleast 10% of the outstanding loan. Howvere, the floating rate loan has a 1% prepayment penalty.

HSBC offers flexible interest rate loans that can be reset every year depending on the prevailing interest rates at that point. The new interest rate will be applicable for the rolling one year Guarantor is required only for loans more than Rs. 10 lacs. Else no guarantor You can prepay upto 25% of the outstanding loan in any year without paying a penalty. For amounts over that, 2% penalty levied.

ICICI launches a 30 year tenure home loan, the longest available ICICI also launches a variable rate loan with a monthly rest basis versus the regular fixed rate loan that is on an annual rest basis No guarantors are required for loans upto 20 years in most cases No pre payment fees for any part payment as long as the loan is not fully retired, else 2% charge on pre paid amount. You can repay upto 33% of the outstanding loan in any year without paying penalty. Free accident death cover for the owner Special 100% funding for select properties Higher eligibility for self-employed professionals through segment-specific schemes

LIC Hsg Finance Ltd. will lower quoted interest rate by 0.5% for loans covered by a life insurance cover that is taken from LIC. The life cover must be taken for a minimum period that covers the tenure of the Home Loan

SBI offers Home Loans with no start-up costs. Most banks charge as high as 2% as processing and administrative fees

Prepayment is 2% if the entire loan is pre paid else it is 0%. Avoid this penalty by prepaying upto 99% of your loan if need be

RESEARCH METHODOLOGY

Research Methodology is an important part of every project. Because it help in knowing how to select representative sample from the world or the general population, the right research tools and techniques to complete the research. To satisfy the customer the study of comsumer behavior is important because he is the king. The Research Process is based on survey method, so in order to implement the survey we go to Service Provider and the Services user which is the customers. The research involves the following steps :♦ Define the problem & research objective - The problem and objective is to assess the services offered by various service provider and what the consumer wants. ♦ Developing the research Plan - The second stage of research methodology is to develop a research plan.The research plan desigined to take decesion on the data soruces, research approaches, research, instruments, sampling plan and contact methods. Survey Research – It was a descriptive research. ♦ Research Instrument – The use of an effective research instrument is very important. Because through this instrument we collect data. In this project through observations & personal interviews were conducted. Personal Interview – As we were doing direct selling. we interacted with my customers are asked about there views in selecting a service and what are there wants and expectations from a service provider  Sampling Plan

- After finalizing the research approch and instruments a

sampling must be designed. ♦ Sampling Unit –data have been collected from banks ♦ Sample size – It has been collected from four banks.

Sampling Procedure :- What process should be used to collect the sample. So, representation samples, convenience sampling is used. ♦ Collect the Information :-After completing all the steps, the data are collected from different sources. ♦Analyze the Information:-After the data is collected they are analyzed to Know the findings. The data is then tabulated to develop frequency distribution. ♦Present

the

findings:-As

the

last

step,

the

findings

are

presented that are relevant to the major marketing decisions.

DATA ANALYSIS The home loans provided by various banks are more or less same at a basic level. The banks generally try to go ahead of other banks in terms of attracting number of customers to their countries. For this they are trying to offer some unique services as per the unique requirements of the unique and important customers. In the next page various data’s have been shown which shows that are the home loans provided by various banks and SCB have also tried to compare the services offered by the banks,. TRENDS IN INTEREST RATES OF HOUSING LOANS Interest Rates Have Dropped

16

15 13.25

14

12.5

12

10

10

8

8 6 4 2 0 2001

2002

2003

2004

2005

And Housing Loan Disbursement Have Soare HOUSING LOAN BEST INTEREST RATES 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

45,000

29,359 19,723

22,425

11,352

1999-00 2000-01 2001-02 2002-03 2003-04 ICICI Tenure 2 yrs 5 yrs 7 yrs 10 yrs 15 yrs

1 lakh 8% 8% 8% 8% 8%

5 lakhs 8% 8% 8% 8% 8%

25 lakhs 8% 8% 8% 8% 8%

100 lakhs 8% 8% 8% 8% 8%

MARKET SHARE OF MAJOR PLAYERS

Market Share of Players 8

5

32

Standard Chartered Bank Citibank ICICI HDFC IDBI OTHERS

5

45 10

Loan Tenure for 5 Years Procressin Name of the Institution

Fixed or Variable

Annual or Loan Slab

Monthly Rent

g Rate of

EMI per

Fee &

Interest

lac (Rs) Administra

Prepayment Fee

tion Fee

Citibank

Variable

Home

10.25%

2137

2%+

nil

10.75%%

2162

2%+

nil

9.5%

2112

1.0%

2%

Monthly

9.25%

2088

.551%

2%

Monthly

9.75%

2112

1.0%

nil

10.75%%

2162

1.0%

nil

10.25%

2137

1.0%

nil

crore

Loan Home

2.1 lacs to 1 Monthly

Variable

2.1 lacs to 1 crore

Monthly

Credit HDFC

Variable

ICICI Home

Fixed

Finance IDBI Bank

Variable

Standard

Fixed

Chartered Bank

Variable

10,000 to 1

Monthly

crore 2 lac to 3 crore 1 lacs to 1 crore 2.1 lacs to 1

crore Monthly 2.1 lacs to 1 crore

COMPARISON OF MAJOR PLAYERS A floating interest rate allows customer to take advantage of interest rate movements --they get immunity from adverse movements and reap the benefits of any fall in interest rate. But a floating rate loan makes sense only when interest rates are high, so that they can take advantage of a possible fall. But predicting interest rate movements could confound even seasoned market-watchers. If they are looking for a home loan, be prepared to cough up a pretty sum as down payment. The Reserve Bank of India, in a recent meeting with bankers, cautioned banks against lending 100 per cent of the property value. That’s because given the increasing competition in home loans, some banks have been funding even 110 per cent of the agreement value. This means your loan not only pays for the property, it helps with stamp duty and registration charges, and even furnishings. It’s been a sweet deal so far, as borrowers not only need have no access to other funds, they also get tax breaks. The RBI’s position is that lending such sums will mean additional risk for the bank. In case of default, the bank may not have sufficient collateral to recover dues, and may have to write off the additional borrowings. However, bankers do not seem unduly worried. Non-performing assets in the housing segment are quite low--below 1 per cent--and that, say bankers, is due to the high asset quality. As per officials of IDBI Bank: "For a house to become a home, there are additional costs incurred by the borrower, which he meets by borrowing from friends or family members. Also, the default risk in housing loans is quite low, so they think that with proper checks, there’s nothing wrong in lending more." IDBI Bank was the first to see this and slashed the interest on its 15-year.

They want to achieve a serious leadership

position in home loans, so they thought of giving the best possible rate to the customers.

Housing finance companies like HDFC, however, lend only up to 85 per cent of the agreement value. There has to be some equity and commitment from the house buyer, so we ask for at least 15 per cent down payment from the house buyer. They try to make sure that their risks are well-covered. For the moment, however, banks can continue lending more than 100 per cent of the property value. But if push comes to shove, and if RBI makes its suggestion a rule, this sweet deal may not last long. More proof that home is indeed sweet home. Bimal Jalan’s latest announcement of a cut in bank rate is a clear sign that the soft interest rate policy is all set to continue. The 25 basis points decrease in the bank rate means the central bank has reduced the rate at which banks borrow from it. This means that banks, in turn, could reduce the interest rates they charge on housing mortgages. Already, State Bank of India, one of the biggies in the housing finance business, has announced a rate cut of 25 basis points. Its rates for loans up to 10 years have been reduced to 8.75 per cent from 9 per cent, and for loans over 10 years to 9.25 per cent from 9.5 per cent. The cost of funds has come down; therefore, they have decided to reduce their home loan rates. When interest rates fall, lenders lower not the EMI amount but the number of months that you pay those EMI’s. The table shows the number of months by which your loan tenure is cut when interest rates are lowered by 0.25 to 1 percentage point. % cut -0.25 20 yrs 11 15 yrs 5 10 yrs 2 On a 9 per cent Rs 1 lakh loan

-0.5 20 10 4

-0.75 29 14 6

-1 37 18 8

There's good news for those wanting a home loan. Over the past few months, lenders have been cutting interest rates on home loans by 2550 basis points. Banks like HDFC, ICICI Bank, and State Bank of India have cut rates by 0.75 per cent in the last two weeks to 9.75 per cent for 15-year loans. One reason for the rate cut is that borrowing costs have come down, which is a result of a cut in interest rates in the general economy. The general economy apart, lenders have been forced to cut rates to keep up with competition. More players want to enter the home loan market, and existing players are fighting for a larger share. HDFC has also felt the heat. It has decided to reduce the review time of its variable interest rate from 6 months to 3 months, so that existing variable rate borrowers can benefit faster in the falling interest rate scenario. ICICI too has kept pace with its peers. While interest rates on fixed mortgages tend to be higher, ICICI has decided to offer the same rate it charges floating rate borrowers. Fixed rate products are not widely available now; lenders like IDBI and Citibank do not offer fixed rate home loans. Others like Corporation Bank are not extending fixed rates loans beyond a 10-year period. This is good in the short-term, but if rates go up, floating rate borrowers may be in for a tough time.

SWOT ANALYSIS OF ICICI BANK HOME LOAN SCHEME STRENGTHS: • Helps to make dream of a house comes true • Customer gets various schemes from various banks • Customer can create his property easily • Use surplus funds to invest when the right opportunity arises WEAKNESS: • Product is very good but it is mainly suitable for the higher income group and is not suitable for the middle income group. OPPORTUNITIES: • Ample scope for financing flats and apartments for the salaried class in the higher income group. • Offering Home loans with reduced interest rates for the personnel in the armed forces. THREATS: • Nationalized banks like SBI, Union Bank and PNB • Private Banks like HDFC and ICICI and Citibank with its Home Credit scheme.

CONCLUSIONS The Indian customer has come a long way from purchasing to fulfilling their needs from buying a house. Customers now grab everything that comes their way but they do their own survey of optimum loans; same is the case with banks, and housing loans. With innumerable choices before him, the customer is indeed the king. It is therefore imperative that if a bank has to succeed in the competitive world, it should be technological savvy, customer centric progressive driven by highest standards of corporate governance and guided by sound ethical values and above all should be cordial and should have personalize customer services. There is scope of exploiting the vast middle income group by releasing loans with special interest rate which would be beneficial to both parties.

RECOMMENDATIONS The following suggestions are strongly recommended: 1. To broaden the customer base the vast middle income strata should be fully exploited 2. Simplify the procedure, reduce service charges, and demand only the basic essential proof. 3. Most banks are reluctant to advance loan to the service class e.g. lawyers, police officers etc.. This aspect must be exploited. 4. Adoption of flexible and more lenient penalty should the customer fail to deposit the payment on time. The penalty should be on case to case basis rather then the same for the entire customer base. 5. Restriction to be reduced to bare minimum for loan advances and for repayment. For e.g. offer long-term repayment facilities and have no age restriction to choosing repayment. 6. The maximum age for repayment could be increase to 65-70 years of age. Such facility will help grow fast retail segment of the bank. 7. Offer multiple repayment loans. 8. Service class to be exploited by offering special reduced rates and linking the repayment from the source from where the pay-cheque to the employee is issued. This needs to undergo special contract with government organisation to ensure implementation.

BIBLIOGRAPHY

1. www.timesofmoney.com 2. www.apnaloan.com 3. The Economic Times, 15 February 2005 4. The Financial Times, 06 December 2004 5. Philip Kotler, Marketing Management, 9th edition 6. Akkar ;Marketing Research 7. Business Today, July 20 2004 issue