Housing finance is one of the industries which are driven by ups and downs in the real state industry. Although there has been an upsurge in the demand for the home loans in the recent past, it has not translated into a stupendous performance by the housing finance companies (HFC's).the housing finance industry is important from the point of view of over all development of the economy .Housing is being increasingly viewed as being important for over all infrastructural development in the economy. The national housing policy reflected the trust ,the government wished to give to the housing sector and pointed out that housing was not merely a consumption expenditure ,but also a productive investment which would provide economic activity and create a base for attaining several national policy goals such as providing shelter and raising the quality of life . It specifies the interest rate to be followed in lending and borrowing, income recognition & prudential norms, borrowing limits & audits to the finance cos .In spite of such figures there is an urging need on the part of management to keep close look on financial institutions offering loans. Comparative study of financial institutions that is exactly what our project aimed at. To give our project a more structured look we had taken certain parameters .This provides us a clear picture regarding the financial institutions. In addition to the above proper analysis was done with the help of certain financial tools.
H.D.F.C was set up on 17th October, 1977 by I.C.I.C.I. out of the consideration that a specialized institution was needed to channel household savings as well as funds from the capital market into the housing sector. H.D.F.C. has emerged as the largest mortgage finance institution in the country. The primary objective of H.D.F.C is to enhance residential housing stock and promote home ownership. One of its major objectives is to increase flow of resources for housing through the integration of housing financial institutions with the domestic market.
[...] Finally we want to give some suggestions on the basis of comparative study of financial institution offering home loans. RATE OF INTEREST should be competitive with other financing institutions. Emphasis should be given on retaining customers. Proper credit appraisal of the customers should be done. Relevant information should be provided to customers time to time. People who deal with customers should have full knowledge about the housing finance industry. The area where we lack is the area of Advertising HDFC Ltd should do more organized communication between the costumer and the branch offices. [...]
[...] PDC Swapping charges Pre-disbursement charges Processing fees: This is a charge that is levied by most HFIs to cover the costs that they incur on the processing of your loan application.This has to be paid at the time of submission of the application form.It's normally charged as a percentage of the loan amount sanctioned.Some HFIs also charges a flat fee based on the loan amount instead of a percentage. When a lower Amount is sanctioned the excess fees paid at the time of submission of the application is adjusted with the charges, which you make to the HFI subsequently. [...]
[...] APPENDIX Financial results of the financial institutions for the year ended March 2001 & 2003 HDFC Ltd provision * Data Source CMIE SBI home finance Ltd provision * Data Source CMIE LIC housing finance Ltd. Ltd. Rs Crore provision * Data Source CMIE Canfin homes Ltd Crore provision * Data Source CMIE ICICI Home finance co. Ltd Ltd Rs Crore provision * Data Source CMIE FAQ Who can avail of a home loan? Anyone! Well, anyone who earns a regular income that is! [...]
[...] THIS TABLE SHOWS THE CRITERIA THAT HAS BEEN FOLLOWED IN STUDYING THE FINANCIAL INSTITUTIONS OFFERING HOME LOANS MAJOR PLAYERS IN THE FIELD OF HOUSING FINANCE Major housing finance institutions are identified on the basis of the following parameters: 1. Net Sales 2. Net Profit 3. Net Worth 1. NET SALES In the financial year 2003 HDFC Ltd. recorded the highest net sales of Rs crores followed by LIC Housing Finance Ltd. with net sales of Rs crores,ICICI Home fin.co.ltd with Rs crores, CANFIN HomesLtd. [...]
[...] 12) What kinds of property can be financed through a home loan? To get finance, the property you choose has to be acceptable to the HFC. The age of the property should not be more than 25 years and the title to the property should be clear and unencumbered. In other words, there should be no hidden snags or doubtful ownership claims for the property loan to get a go-ahead! 13) Can I get a loan for commercial property, like offices etc.? [...]
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