2. There is always a sense of gratitude which one express towards for their help and
supervision in achieving goals. This formal piece of acknowledgement is an
attempt to express the feeling of gratitude towards people who successfully helped
us in completing our project.
We would like to express our deep gratitude to our professors Mr. Harshad Thakkar
and Mr. Kamal Shah who guided us to work honestly and have given valuable
suggestions and last but not the least I would like to place of appreciation to all
those who have helped us in this project.
2
3. Everyone dreams of owing his own land and property one day and to turn their dreams
into reality is what the system of home loans do in India.
Now a days rural people are migrating towards urban areas for employment as well as
for education purpose. So they are demanding for housing loans.
Many banks are providing home loans at cheapest rate to attract consumers towards
them. Taking home loans these days has become simpler. RBI regularly bring down
interest rates; taking home loans have become extremely easy.
Housing loans which were 16.5% to 18% a few years ago fell by 11.5% to 13%. With
interest rates going down, people increasingly number apply to take these loans.
3
4. 1. Home Purchase Loans
2. Home Improvement Loans
3. Home Extension Loans
4. Land Purchase Loans
5. NRI Home Loans
4
5. Step 1: Application Form
Step 2: Personal Discussion
Step 3: Bank’s Field Investigation
Step 4: Credit appraisal by the bank and loan sanction
Step 5: Offer Letter
Step 6: Submission of legal documents & legal check
Step 7: Technical/ Valuation check
Step 8: Valuation
Step 9: Registration of property documents
Step 10: Signing of agreements and submitting post dated cheques.
Step 11: Disbursement
5
6. Completed loan application form with one passport size photograph
Proof of individual’s identity
• Passport
• Photo PAN Card
• Defense Identity Card
• Voter’s Identity Card
• Driving license
• Government Identity Card
• Photo Ration Card
Proof of residence
• Passport
• Ration Card
• Telephone (Land/ Mobile) bill
6
7. • Electricity bill
• Driving license
• Society outgoing bill
• Voter’s identity card
• Life insurance policy
• Only passport can be used as both proof of individual’s identity and proof of
residence.
Proof of Age
• Passport
• Voter’s identity card
• Birth certificate
• Valid driving license
• School leaving certificate
7
8. Repayment:
EMI: An EMI refers to an equated monthly installment. It is a fixed amount which
you pay every month towards your loan. It comprises of both, principal repayment
and interest payment.
Flexible Loan Installment Plan (FLIP): Flip is a repayment facility, given when
the incomes are going to reduce after a certain period during the loan tenure.
For a partly disbursed home loan
Pre-EMI: Where you have availed only a part of the loan, you would be required to
pay us only the interest on the amount disbursed till the full loan is availed. This
interest is called pre-EMI interest (PEMI).
EMI Under Construction: EMI Under Construction is offered for structuring a
home loan to enable individuals to commence their EMI in a partly disbursed under
construction project.
8
9. State Bank of India (SBI) is a multinational banking and financial services company
based in India.
Package of exclusive benefits
Low interest rates. Interest is calculated on a daily reducing balance.
Home Loan also available as an Overdraft.
Low processing charges. No hidden costs or administrative charges.
No prepayment penalties. Reduce your interest burden by prepaying the loan.
Purchase of a plot of land for construction of House
Extension/ repair/ renovation/ alteration of an existing House/ Flat
Purchase of Furnishings and Consumer Durables as a part of the project cost.
Takeover of an existing loan from other Banks/ Housing Finance Companies.
9
10. Salaried Person Self Employed
Age (min to max) 21 to 58 21 to 70
Income 120000 pa 200000 pa
Loan Amount Above 6 lacs Above 6 lacs
Tenure 5yrs to 20yrs 5yrs to 20yrs
Current Experience 2 yrs 3yrs
Interest Rate(According to Fixed Rate) 9.75% 9.75%
EMI Rs. 32624.93 Rs. 32624.93
Loan Amount Processing Fee
Up to 25 Lacs 0.25% of loan amount, minimum Rs. 1,000/-
25 Lacs to 75 Lacs Rs. 6,500/-
Above 75 Lacs Rs. 10,000/-
10
11. Home Loans for NRI :
Lowest EMIs
Transparency with no hidden costs
Higher loans, by clubbing spouse's income/adding expected rent accruals
No Pre-Payment penalty
Life cover from SBI Life at attractive rates of premium
Dedicated network of NRI Branches, Personal Banking Branches, Special
Housing Finance Branches, Intensive Housing Finance Branches & Home
Loan Outbound Sales Force catering exclusively to Home Loans
11
12. HOUSING DEVELOPMENT FINANCE CORPORATION
LIMITED (HDFC)
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 RBI’s liberalization of the
Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name
of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
12
13. Salaried Person Self Employed
Age 21 to 60 yrs 25 to 70 yrs
Loan Amount Up to 75 lacs = 80% of property cost
>75 lacs = 75% of the property cost
Tenure 30yrs 30yrs
Current Experience Min 2yrs Min 4yrs
Interest Rate(According to Fixed
Rate)
Up to 75lacs = 10.05% ‐10.7%
Up to 5cr = 9.95% ‐ 10.55%
Interest Rate(According to floating
Rate)
Up to 75lacs = 9.85% ‐ 10.4%
Above 75 lacs = 9.85% ‐ 10.4%
EMI Rs.20332 to 21038 Rs.20332 to 21038
Processing Fees :
0.5% of loan amounts administrative fees or Rs.2000 whichever is Higher
13
14. Home Loan for NRI :
Attractive interest rates
Dedicated and experience team of exports
Extensive branch-service center network
Export legal & technical advisors
Safe document storage facilities
Home improvement loans facilities
Attractive interest rate
No hidden charges
14
15. LIC Housing Finance Ltd. is one of the largest Housing
Finance company in India. The main objective of the Company is providing long
term finance to individuals for purchase or construction of house or flat for
residential purpose / repair and renovation of existing flat / houses. The
Company also provides finance on existing property for business / personal
needs and also gives loans to professionals for purchase / construction of Clinics
/ Nursing Homes / Diagnostic Centers / Office Space and also for purchase of
equipments. The Company also provides long term finance to persons engaged
in the business of construction of houses or flats for residential purpose and to be
sold by them.
17
16. Salaried Person Self Employed
Age 18 to 60 18 to 60
Income Rs. 15000 (PM) ITR-2,00,000(PA)
Loan Amount 5 lacs – 1 crore 5 lacs – 2 crore
Tenure 5 to 25yrs 5 to 20 yrs
Current Experience 2 yrs 3 yrs
Interest Rate(According to Fixed Rate) 10.10% 10.10%
EMI Rs.972 per lac Rs.972 per lac
Loan Amount Processing Fees
Up to 50lacs 10000 + Service Tax
Above 50lacs 15000 + Service Tax
For Women No fees
18
17. Home loans for NRI :
This loan is available only for Salaried persons having NRI/PIO status.
Minimum loan amount is 1,00,000lacs
19
18. INDUSTRIAL DEVELOPMENT BANK OF INDIA(IDBI)
IDBI Bank is the youngest, new generation, public sector is a
Universal Bank with its operations driven by a core Banking at IT platform. The Bank
offers personalized banking and financial solutions to its clients in the retail and
corporate banking arena through its large network of Branches and ATMs, spread across
length and breadth of India.
One can avail for Home Loans for constructing a home, purchasing
a ready built house/flat, residential plot and even for re-financing existing loans one may
have availed from other banks or housing finance companies.
15
19. Salaried Person Self Employed
Professionals
Age (min to max) 22 to 70 yrs 25 to 70 yrs
Income 1,44,000 pa 1,50,000 pa
Loan Amount 2 lacs to 1cr 2 lacs to 2cr
Tenure 5 to 20yrs 5 to 20yrs
Current Experience - -
Interest Rate(According to
Fixed Rate)
Below Rs. 25lac = 10.25%
Rs.25 lac & above = 10.25%
EMI Rs.926/lacs Rs.926/lacs
Processing fees :
0.50 % of loan amount(plus applicable taxes)
Rs.2500(plus applicable taxes) to be collected at time of sanction
16
20. ICICI Bank was incorporated in 1994 when it was promoted by ICICI
Limited, an Indian financial institution as its wholly owned subsidiary. After almost 7 years
of working as a subsidiary of ICICI limited, ICICI Bank merged with itself ICICI Limited
along with its other two subsidiaries in April, 2002 to form a single entity to serve both
wholesale and retail customers. ICICI Bank is India's second largest bank and the largest
private sector bank in terms of assets and market capitalization. The bank provides a
complete range of banking products and financial services to its customers through
multi‐channel delivery platform across all customer segments including corporate retail,
small business, and agriculture.
20
21. Salaried Person Self Employed
Age 21 to 65 yrs 21 to 65yrs
Income 1,44,000 pa 1,50,000 pa
Loan Amount 2 lacs to 1cr 2lacs to 2cr
Tenure 5yrs to 20yrs 5yrs to 20yrs
Current Experience 1yrs 3yrs
Interest Rate(According
to Fixed Rate)
Upto 30lacs 31lacs to 75lacs Above 75lacs
9.85% ‐ 9.9% 9.9% to 10.25% 10%
Interest Rate(According
to floating Rate)
Upto 75lacs Upto 5cr Above 5cr
9.85% ‐ 9.9% 9.9% 10%
EMI Rs.958 per lac
Processing Fees :
0.5% of loan amounts administrative fees or Rs.2000 whichever is Higher
21
22. Home Loans for NRI :
Attractive interest rates on a monthly reducing basis method
Fixed and floating rate interest as per your choice
Part pre-payment facility for zero fees
Free personal accident insurance to the extent of loan outstanding
22
23. 23
SBI HDFC IDBI LIC HFL ICICI
AGE 21-58yrs 21-60yrs 20-70yrs 18-60yrs 21-65yrs
INCOME 120000p
a
- 144000p
a
15000pm 144000pa
EXPERIENCE 2yrs 2yrs - 3yrs 1yrs
LOAN
AMOUNT
Above
6lacs
Up to
75lacs
2lacs-
1cr
5lac-1cr 2lacs-1cr
TENURE 5-20yrs 30yrs 5-20yrs 5-25yrs 5-20yrs
ROI 9.75% 9.95-
10.70%
10.25% 10.10% 9.85-
10.25%
EMI Rs.3262
4.93
Rs.20332
-21038
Rs.926/l
ac
Rs.972/lac Rs.985/lac
PROCESSING
FEES
0.25% 0.5% or
Rs.2000
w/h
0.5% Rs.10k-
15k+servic
e tax
0.5% or
Rs.2000
w/h
24. 24
SBI HDFC IDBI LIC HFL ICICI
AGE 21-
70yrs
25- 70yrs 25-
70yrs
18-60yrs 21-65yrs
INCOME 200000p
a
- 150000
pa
ITR- 2 lac
(p.a)
150000pa
EXPERIENCE 3yrs 4yrs - 3yrs 3yrs
LOAN
AMOUNT
Above 6
lacs
Up to
75lacs
2lacs-
2cr
5 lac – 2 cr 2lacs-2cr
TENURE 5-20yrs 30yrs 5-20yrs 5-20yrs 5-20yrs
ROI 9.75% 9.95-
10.70%
10.25% 10.10% 9.85-
10.25%
EMI Rs.3262
4.93
Rs.20332
-21038
Rs.926
per lac
Rs.972 per
lac
Rs.958 per
lac
PROCESSING
FEES
0.25% 0.5% or
Rs.2000
w/h
0.5% Rs.10k-
15k+servic
e tax
0.5% or
Rs.2000
w/h
25. Conclusion :
According to the Comparison of Home Loans the Rate of interest for
SBI Bank is low so it is better and HDFC is better for Tenure and it is for
salaried person and self employed person.
25
