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Comparative study of institutions offering home loans

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  1. Executive summary
  2. Company profile
  3. Objective of the study
  4. Major players in the field of housing finance
  5. Details of loan transfer cases studies (Analysis)
  6. Trend analysis of financial institution offering home loans
  7. Result and suggestions
  8. Limitations
  9. Appendix
  10. Bibliography

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. [...]

[...] If you are a partnership or a private limited company, any one of the directors or partners can be your co-applicant 22) What are the various costs that have to be paid to the Housing Finance company to avail of a home loan? After all, you need to know what you're going in for! Well, the various charges involved in availing a housing loan are Interest cost the interest cost for the finance provided. Processing, Overhead and Administrative Charges these are one-time payments made for initiating the process of a housing loan. [...]

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