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 (HDFC'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 infrastructure 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. A Comparative study of financial institutions 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.
[...] 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.? [...]
[...] One of its major objectives is to increase flow of resources for housing through the integration of housing financial institutions with the domestic market. Marketing effort Marketing efforts and initiatives at HDFC LTD have always revolved around the customer. The objective is to reach out to the customer and provide him/her with all housing related solutions. Thus HDFC LTD has right since inception positioned it self not just as a company providing finance to customers, but a company that also provides loan counseling, technical and legal assistance and other property related solutions. [...]
[...] APPENDIX Financial results of the financial institutions for the year ended March 2002 & 2005 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! [...]
[...] LTD YEAR SALES Rs PBT Rs TREND(%)SALES TREND(%)PBT ENDING Crore Crore Trend sales of financial institution offering home loans-A comparison ANALYSIS From the graph and the data table we can arrive the conclusion that on the whole, there was a continuous increase in volume as well as profit before tax of financial institutions except SBI home finance Ltd. not only the client was arrested but positive growth was also visible from the year 1998 to 2003. But the figure of the SBI home finance Ltd when compared with the figure of other financial institutions reveal that the sales have reduced year by year. [...]
[...] 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 2004 05, 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. [...]
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