A PROJECT REPORT ON

A study of HDFC bank home loan

Logo of RGI / AKS (As the case may be)
A report submitted in partial fulfillment of the requirements
of
THE BBA THREE YEAR !E"REE PRO"RA#
$%&''(')*
Submitted By Guided By
(Bhupendra singh) (ramod d!i"edi)
(#oll no) (Designation)
#ana+ement of Business Administration
Ra,i- "andhi .olle+e atna $#/P/*
1
C$#%&F&CA%$
This is to .ertif0 that the pro,e.t report on A study of
HDFC bank home loan1 has been .ompleted b0 Bhupendra
singh student of BBA 23 semester 45inan.e 6+roup/ 3n partial
fulfillment of the requirement of the BBA three 0ear de+ree
.ourse/
Signature
(ramod du"edhi)


2
!EC7ARAT3ON
3 Bhupendra singh 8o Ramprasad singh student of
Ba.helor of Business Administration $BBA*9 Ra,i- "andhi
Colle+e here b0 de.lare that this pro,e.t report under the title A
study of HDFC bank home loan1 is m0 ori+inal :or;/
All the information and data +i-en in the report are authenti.
to the best of m0 ;no:led+e and ha-e been obtained from
reliable sour.es/
Signature <
Student's (ame<
Spe)ialisation <
5inan$nrollment (o < A(
''(:6000

Roll No:


3
ACKNOWL!G"N#
No ga$% &$tho't $s a commo% say$%g( G)at$t'*e $s the ha)*est
of emot$o% to e+,)ess a%* ofte% *oes %ot f$%* a*e-'ate &o)* to
co.e)y(the)efo)e th$s ,)o/ect )e,o)t $s %ot a% effo)t $s %ot a% effo)t of
s$%gle ,e)so% b't $s a co%t)$b'to)y effo)t of ma%y ha%*s a%* b)a$%s( So I
&o'l* l$0e to tha%0s all those &ho ha.e hel,e* me *$)ectly o) $%*$)ectly
*')$%g my s').ey ,)o/ect(
W$th a% $%effable se%se of g)at$t'*e I ta0e th$s o,,o)t'%$ty to
e+,)ess my *ee, se%se of $%e,t%ess to ")(A%a%t So%$ (*$)ecto))1Ra/$.
Ga%*h$ G)o', of $%st$t't$o%s fo) ,)o.$*$%g $%f)ast)ct')e to ca))y o't
th$s ,)o/ect &o)0(
I am e+t)emely g)atef'l to !)( G(S(,a%*ay (,)$%c$,le) fo) g$.$%g
me the o,,o)t'%$ty to ca))y o't th$s ,)o/ect(
I am also tha%0f'l to ")(,)amo* *$&e*h$ fo) h$s 0ee%
$%te)est1,e)s$ste%t e%co')ageme%t a%* '%$t$2$%g g'$*a%ce tho'ghts the
*e.elo,me%t of the ,)o/ect1$t has bee% my g)eat ,)$.$lege to &o)0 '%*e)
h$s $%s,)$$%g a%* ,)o.o0$%g g'$*a%ce(
I am also tha%0f'l to ma%y ,eo,le &ho t$mely hel,e* me b't
,a'c$ty of s,ace $s )est)$ct$%g me f)om me%t$o%$%g the$) %ames a%*
f$%ally I also tha% to all my f)$e%*s&ho &e)e co%sta%tly s',,o)t$%g me
*')$%g the &hole ,)o/ect(

3456N!RA SING4
4

5
IN#RO!5C#ION O #O 4O" LOAN 4!7C 3ANK
4ome $s a *)eam of a ,e)so% that sho&s the -'a%t$ty
of effo)ts1 sac)$f$ces l'+')$es a%* abo.e all gathe)$%g f'%*s l$ttle by
affo)* o%es *)eam( 4ome $s o%e of the th$%gs that e.e)yo%e o%e &a%ts to
o&% home $s a shelte) of ,e)so% &he)e the )ests a%* feel comfo)table
ma%y ba%0s ,)o.$*$%g home loa% &hethe) comme)c$al ba%0s of
f$%a%c$al $%st$t'tes to the ,eo,le &ho &a%ts to ha.e a home(
4!7C (ho's$%g *e.elo,me%t f$%a%ce co),o)at$o%)home loa% I%*$a ha.e
bee% se).$%g the ,eo,le fo) a)o'%* the)e *eca*es a%* ,)o.$*$%g .a)$o's
ho's$%g loa% acco)*$%g to the$) .a)$e* %ee*s at att)act$.e 8)easo%able
$%te)est )ate o&$%g to the$) &$*e %et&o)0 of f$%a%c$%g 4!7C ho's$%g
loa%s ,)o.$*es se).$ces at yo') *oo)ste, a%* hel,s yo' f$%* a home as
,e) yo') )e-'$)eme%ts(
"a%y ba%0s a)e ,)o.$*$%g home loa%s at chea,est )ate to att)acts
co%s'me)s to &a%ts them the mo)e c'stome) f)$e%*ly att$t'*e of th$%gs
ba%0s
I% .$e& of ac'te ho's$%g sho)tage $% co'%t)y a%* 0ee,$%g $% m$%* the
soc$al 9eco%om$c )ole of comme)c$al ba%0s $% the ,)ese%t t$mes the R3I
a*.$se* ba%0s to e%co')age the flo& of c)e*$t fo) ho's$%g f$%a%ce(
6
HDFC also provides with home improvement loan for internal and external
repairs and other structural improvement like paintin! waterproofin!
plum"in and electric work# $iltin and floorin rills and aluminum
windows HDFC of renovation %1&&' for existin customers(
)
*
CO"6ANI 6RO7IL:;
HDFC +ank ,td is a ma-or .ndian financial service compan/ "ased
in mum"ai#the "ank is a pu"licl/
$he "ank has three primar/ "usiness sements namel/ "ankin
wholesale "ankin and treasur/ #the retail "ankin sement service
retail customer throuh a "ranch network and other
deliver/ channels this sement raises deposits from customers
and makes loan and provides other service with the help of
specialist product roup to such customer # $he wholesale "ankin
sement provides loans non0fund facilities and transaction service
to corporate pu"lic sector unit1s overnment "odies! financial
institutions and medium scale enterprises# $he treasur/
sement includes net interest earnins on investments portfolio
of the "ank the "ank1s 2$3 network can "e accessed "/ all
domestic and international visa 4master card 4visa electron4maestro!
plus 4cirrus and 2merican express credit4chare cardholders# $he
"ank shares are listed on the +om"a/ stock exchane limited and
the national stock exchane of .ndia ,td#
$he "anks 2merican depositor/ shares %2D5( are limited on the
new 6ork stock exchane %7658( and the "anks lo"al depositor/
receipts %9D:( are listed on ,uxem"our stock exchane HDFC
"ank ,td are incorporated on 2uust 3&!1;;4 "/ housin
development finance corporation ,td in the /ear 1;;4 housin
;
development finance corporation ,td was amonst the first to
receive an in principle approval from the reserve "ank of .ndia to
set up a "ank in the private sector or part of the :+.s li"erali<ation
of the .ndian "ankin industr/ HDFC "ank commenced operations
as a scheduled commercial "ank in =anuar/ 1;;5 in the
75CC,#in the /ear 1;;) the launched retail investment advisor/
service in the /ear 1;;* the/ launched their first retail lendin
product loan aainst shares in the /ear 1;;; the "ank launched
online real0time 7et "ankin in Fe"ruar/ 2&&& times "ank
,td owned "/ "ennett!coleman and climes roup amalamated
with the "ank ,td this was the first merer of two private "anks in
.ndia !the "ank was the first to launch an international de"it card
in association with >.57 %>isa 8lectron( in the /ear 2&&1!the/
started their credit card "usiness! 2lso the/ "ecome the first private
sector "ank to "e authori<ed "/ the central "oard of direct taxes
%C+D$( or well as the :+. to accept direct tax#

1&

3OAR! O7!IRC#ORs
!eta$l of boa)* of *$)ecto) $% te)ms of the$) *$)ecto)sh$,s
/membe)sh$,s $% comm$ttees of ,'bl$c com,a%$es as o% ma)ch
<=(>0=? a)e as '%*e)(
:eno# 7ame of directors Cateor/? 7o# of
directorship??
7o# of
committees???
1# 3r# Deepak
5partech
7on0
executive
chairman
) 5 2
2# 3r#+#5#mehta .ndependent 13 ; 4
3# 3r#D#3#sukthanka
r
.ndependent 3 2 1
4# 3r#D#7#9hosh .ndependent 4 0 0
5# Dr#5#2#Dave .ndependent * 6 2
6# Dr#:am 5#$ame-a .ndependent ; 6 1
)# 3r#7#3#mun-ee .ndependent 11 * 5
*# Dr#mimal -alan .ndependent 0 0 0
;# Dr#=#=#.rani .ndependent 3 1 0
1&# 3r#>#srinivasa
:anan
8xecutive
director
12 * 0
11# 3s#:enu sud
karma
3anain
director
13 5 3
12# 3r#kekim#minstr/ >ice
chairman
@chef
executive
officer
13 1& 4
11
12
$o explain home loan procedure0
13
$he procedure involves in the
dis"ursement of home loan "/ an/ "ank entails the followin steps#
1# Home loan application form is first su"mitted "/ the
customer coverin all details#
2# Checklist of reAuirement is reAuested to from the customer
2nd all documents are reAuired to "e su"mitted
%copies( the/ are then verified whether the details are failed in
correctl/ and whether all the documents or su"mitted#
$he followin diaram indicates the loan procedure at the0
Customer
+ranch manaer
14
,oan department
,eal opinion
>aluation and technical
:eional officer
For lare "orrows
+ank
$o stud/ and understand the documents
involved in the home loan scheme B

1 passport 4 drivin license 4 voter id card4C27 card 4 ration card4
emplo/er id entit/ card4school livin certificate4"irth certificate#
2 cop/ of "ank statement for the last 6 month
3 cop/ of latest credit card statement#
4 passport si<e photoraph
+ranch manaer
15
5 sinature verification "/ /our "ankers
6 proof of residence0
:ation card
C27 card
Cassport
) income proof B
Dated salar/ certificate with latest from 16

* "ankin histor/ "anks B
+ank statements of latest 2 months43month "ank pass"ook
l$g$b$l$ty c)$te)$a fo) home loa%;
16
How much an application can "orrow home loan
rane from :s#11 ,ake to :s#5& ,ake /our repa/ment period
can var/ from 1 /ear to 2& /ear dependin upon /our
capacit/ to repa/D
8lii"ilit/E0
2e0minimum /ou should "e at least 21 /ear of ae#
3aximum at the time of loan maturit/! /ou should not
exceed 65 /ears or /our retirement ae! whichever is earlier#
.ndividuals0/ou should have completed a minimum of 2
/ear of service# %Fith a minimum of 1 /ear in the current
-o"(
+usinesspersons4self emplo/ed professionalE /ou must have
an esta"lished "usiness or professional practice of not less
than 3 /ear with a positive#net worth and must have posted a
net profit for the last 2 /ears#
7ote0minimum net take home salar/ of :s#6&&&40p#m# for
salaried emplo/ees or annual income of not less then :e#
1#2& ,ake for "usinesspersons4self0emplo/ed professionals#
1# .ndividual who are salaried or self emplo/ed professional!
"usinessmen are elii"le proprietar/ concerns HGF!
partnership firms or limited companies are not elii"le for
this loan! where partners at their individual capacit/ are free
to avail this loan#
2 2s a customer to enhance the loan elii"ilit/! all HGF la/
down condition to who is co0applicant !as co0owners to the
propert/ should necessaril/ "e co0applicant# .ncome of the
1)
co0owners can "e clu""ed to ather to et hiher loan
elii"ilit/ minors are not elii"le to "ecome co0&wner #as also
friend and relatives onl/ "lood relatives are elii"le to take a
propert/ -ointl/
3 $he minimum ae for the applicant and the co0applicant to
"ecome elii"le for the commencement loan is 23 /ears and
co0applicant can "e of 1* /ears of ae if there income is not
clu""ed to calculate the loan elii"ilit/

4 $he maximum ae at the time of loan maturit/ for applicant
or co0applicant is 6& /ear or the retirement ae whichever is
earlier
5ome of the accepta"le relationship where loan clu""in is possi"le#
.ncome clu""in of co applicants
1*
Com"inations
Hus"and0wife
Carent0son
Carent0dauhter
+rother0"rother
+rother0sister
5ister0sister
Carent0minor child
.ncome clu""in
6es
6es%if onl/ son(
6es%if onl/ child(
6es
7o
7o
7ot elii"le for loan#

( I%te)est )ate 9
1;
Fithout dou"t the most important parameters
to factors into home loan calculation the interest rates ma/ var/
from institution to institution and enerall/ rane from at 1&#250
12#)5' to around 11#5' repa/ment is in the form of 8mirs
%8Auit/ monthl/ pa/ment will "e less
$he two kinds of interest rates availa"le to a customer are
10fixed interest rate
20floatin interest rate
HDFC "ank home loan floatin interest rate #
20up to 3& lacks 1&#5&'
+03& to )5 lacks 1&#)5'
C02"ove)5 lacks 11'
HDFC home loan fixed interest rate#
20up to 3& lacks 12#25'
+03& to )5 lacks 12#5&'
C02"ove )5 lacks 12#)5'
2&
Re,ayme%t schemes
HDFC which has "een in the home sement since 1;)) has also introduced a host of new
features to its home loan portfolio#
HDFC offers flexi"le repa/ment scheme# Heepin in mind the fact that each individual
has uniAue pro"lem reAuirin uniAue solutions
HDFC has developed various repa/ment options like#
5tep up repa/ment facilit/
Flexi"le loan installment
+alloon repa/ment scheme# where the pa/ment in the initial /ears is less
and the later /ears are more#

21


RSARC4 "#4O!OLOG@ O7 #4
S#5!@
22
Resea)ch metho*ology
Resea)ch metho*ology $s a &ay to systemat$cally sho& the
)esea)ch ,)oblem $t may be '%*e)stoo* as a sc$e%ce of st'*y$%g
ho& )esea)ch $s *o%e sc$e%t$f$cally( $t $s %ecessa)y fo) the
)esea)che) to 0%o& %ot o%ly the )esea)ch metho*s b't also the
metho*ology(
#h$s sect$o% $%cl'*es the metho*ology &h$ch
$%cl'*es the )esea)ch *es$g% ob/ect$.e of st'*y sco,e of st'*y
alo%g &$th )esea)ch metho*ology a%* l$m$tat$o% of st'*y etc(
#o 0%o& the c'stome)s ,e)ce,t$o%s abo't home loa% of
4!7C ho's$%g *e.elo,me%t f$%a%ce co),o)at$o% Lt*(
#o st'*y the sat$sfact$o% le.el of c'stome) abo't home
loa%s(
#o st'*y the ,)oblem face* by c'stome)s $% obta$%$%g
the home loa%(
#o ma0e com,a)at$.e st'*y of *$sb')seme%t of home
loa% by comme)c$al ba%0s the st'*y shall be co%*'cte*
$% the ma%%e) e%'me)ate* belo&(
23
=;RSARC4 !SIGN;:
#h$s ,)o/ect $s base* o% e+,lo)ato)y st'*y as
&ell *esc)$,t$.e st'*y $t &as a% c'stome) sat$sfact$o% le.el &as
st'*$es to s'ggest %e& metho*s to $m,)o.e the se).$ce of
4!7C Lt*( I% ,)o.$*$%g home loa% a%* $t &as *esc)$,t$.e
24
st'*y &he% *eta$l st'*y &as ma*e fo) com,a)$so% of
*$sb')seme%t of home loa% by comme)c$al ba%0s(
>;SO5RC O7 !A#A;:
#o f'lf$ll the $%fo)mat$o% %ee* of the st'*y
the *ata $s collecte* f)om ,)$ma)y as &ell as seco%*a)y so')ce(
A;6RI"AR@ !A#A;:
I *ec$*e* ,)$ma)y *ata collect$o% metho*
beca'se o') st'*y %at')e *ose %ot ,e)m$t to a,,ly
obse).at$o%al metho* $% s').ey1 a,,)oach &e ha* selecte* a
-'est$o%%a$)e metho* fo) ta0$%g a c'stome) .$e& beca'se $t $s
feas$ble f)om the ,o$%t of .$e& of o') s'b/ect 8s').ey ,'),ose
&e co%*'cte* =00 sam,le of s').ey $% o') ,)o/ect to /'*ge the
sat$sfact$o% le.el of c'stome) &h$ch too0 home loa%(
SA"6L SIA
7o) the -'est$o%%a$)e I ha.e ta0e% the sam,le
s$2e of =00 c'stome) of 4!7C Lt*(
3;SCON!AR@ SO5RC;:

It &as collecte* f)om $%te)%al so')ce( the
seco%*a)y *ata &as collecte* o% the bas$s of o)ga%$2at$o%al f$le
off$c$al )eco)*s1 %e&s ,a,e)1 maga2$%es ma%ageme%t boo0s
,)ese).e* $%fo)mat$o% $% the com,a%y *atabase a%* &ebs$te of
the com,a%y(
25
<;SA"6LING;:
Sam,l$%g )efe)s to the metho* of select$%g a
sam,le f)om a g$.e% '%$.e)se &$th a .$e& to *)a& co%cl's$o%s
abo't that '%$.e)se a sam,le $s )e,)ese%tat$.e of the '%$.e)se
selecte* f)om st'*y(
SA"6L SIA;:
La)ge sam,le g$.es )el$able )es'lt tha% small
sam,le ho&e.e)1 $t $s %ot feas$ble to ta)get e%t$)e ,o,'lat$o% o)
e.e% a s'bsta%t$al ,o)t$o% to ach$e.e a )el$able )es'lt so th$s
)e,eat select$%g the sam,le to st'*y $s 0%o&% as sam,le s$2e1
he%ce fo) my ,)o/ect my sam,le s$2e &as =00(
SA"6LING #C4NIB5;:
Ra%*om sam,l$%g tech%$-'e &as 'se* $% the
s').ey co%*'cte*(
#OOL O7 ANAL@SIS;:
!ata has bee% ,)ese%te* &$th the hel, of ba)
g)a,h1 ,$e g)a,h1 cha)ts1 l$%e g)a,hs etc(
6LAN ANAL@SIS
26
#ables &e)e 'se* fo) thee a%alys$s $s of the
collecte* *ata the *ata $s also %eatly ,)ese%te* &$th thhheeeee
hel, of g)a,hs a%* ,$e cha)ts ,e)ce%tage a%* a.e)ages ha.e
also bee% 'se* to )e,)ese%t *ata clea)ly a%* effect$.ely(
?;!A#A COLLC#ION INS#R5"N#
!CLO6"N#
#he mo*e of collect$o% of *ata &$ll be base* o% s').ey metho*
a%* f$el* act$.$ty ,)$ma)y *ata collect$o% &$ll base o% ,e)so%al
$%te).$e&Ds ha.e ,)e,a)e* the -'est$o%%a$)e acco)*$%g to the
%ecess$ty of the *ata to be collecte*(
E;LI"I#A#ION O7 #44 S#5!@
#h$s st'*y also $%cl'*es some l$m$tat$o% &h$ch ha.e bee%
*$sc'sse* as follo&s:
=( the sam,le s$2e of =00 c'stome)s a%* ? ba%0s m$ght ,)o.e a
l$m$tat$o% beca'se of *$ff$c'lty $% ge%e)al$2at$o% of )es'lts(
>( #o collect the *ata f)om .a)$o's ba%0s &as -'$te *$ff$c'lt
*'e to %o%;coo,e)at$o% of some ba%0s the ,)o.e* to be
ma/o) l$m$tat$o% the st'*y(
<( Lac0 of *ata &as also the othe) l$m$tat$o% of thee st'*y as
some of ba%0s *o %ot ha.e ,)o,e) *ata o% to,$c(
2)
?( #he)e &as l$m$tat$o% of t$me to co%*'ct s'ch a b$g s').ey
$% l$m$te* a.a$lable t$me(
E( Ig%o)a%ce a%* )el'cta%t att$t'*e of c'stome) &as also a
ma/o) l$m$tat$o% $% th$s st'*y(
2*
RCIW O7 LI#RA#5R
S5""AR@;:
Afte) go$%g th)o'gh ,)e.$o's
st'*$es of home loa% I come to
co%cl'*e that(
2;
#he)e $s g)o&th of home loa% afte) >00=
4ome loa% ha.e a% $%.e)se )elat$o% &$th $%te)est )ate Ice( &he%
$%te)est )ate la& thee *ema%* of home loa% $%c)ease(OF4A =GHI)
6eo,le a)e go$%g mo)e to&a)*s home loa% the% ,)o.$*e mo)tgage
$%s')a%ce (be sta$% >00H)
Go.e)%me%t ta0$%g .a)$o's ste,s to e%co')age ,eo,le to go
to&a)* home loa%s((ha.e 0o, >000)
S3I ,)o.$*e a .e)y lo& $%te)est )ate o% home loa% as com,a)e* to
othe) ba%0s S3I may >0=>(
3&