The document discusses housing finance in India. It provides an introduction to housing loans facilitated by the Reserve Bank of India. It then summarizes the objectives of studying Indian housing finance. It describes direct and indirect housing finance and loan limits under priority sectors. It discusses the growth of housing finance marketing and provides an overview of HDFC, SBI Home Finance, and LIC Housing Finance, including their services and financial performance. The conclusion compares the three companies.
This is presentation being presented by Shivi Aggarwal, Radhika Gupta, Sweta Agarwal and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It has Guidelines of HFC, Busniess Model of HDFC
This is presentation being presented by Shivi Aggarwal, Radhika Gupta, Sweta Agarwal and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It has Guidelines of HFC, Busniess Model of HDFC
Housing finance refers to finance provided to individuals or group of individuals for purchasing/building a house. RBI has given a free rein to banks to decide on the age of dwelling, repayment schedule, margin and security with the approval of their board. There are three types of housing finance namely direct finance, indirect finance and supplementary finance. Housing loan is normally 80 to 85% of the cost of flat. However, some banks provide 100% amount. Banks charge fixed interest rate or a floating rate on housing loans.
About the housing finances in India. About the national hosing bank and the functions of it. Then about the micro housing finance corporation and the types of loans, housing and its development. Discussion on the urban infrastructure.
HDFC (Housing development finance corporation)Sagar Kaptan
The housing development finance corporation (HDFC) is another notable and premier housing finance organization of government carrying on appreciable work in the area of housing finance. It was established in 1976 and has today become a major channelling institution which directs the public saving and capital finance into house building.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
Housing finance refers to finance provided to individuals or group of individuals for purchasing/building a house. RBI has given a free rein to banks to decide on the age of dwelling, repayment schedule, margin and security with the approval of their board. There are three types of housing finance namely direct finance, indirect finance and supplementary finance. Housing loan is normally 80 to 85% of the cost of flat. However, some banks provide 100% amount. Banks charge fixed interest rate or a floating rate on housing loans.
About the housing finances in India. About the national hosing bank and the functions of it. Then about the micro housing finance corporation and the types of loans, housing and its development. Discussion on the urban infrastructure.
HDFC (Housing development finance corporation)Sagar Kaptan
The housing development finance corporation (HDFC) is another notable and premier housing finance organization of government carrying on appreciable work in the area of housing finance. It was established in 1976 and has today become a major channelling institution which directs the public saving and capital finance into house building.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
Housing is one of the basic needs of an individual in
terms of safety, security, self-esteem, social status, satisfaction
and achievement. A large amount is required to
construct/purchase a house, which is generally not available to
a person. Hence, over the last few years, housing finance has
become an attractive business for financial institutions of
India due to its low risk characteristics. But this sector has
some problems which require attention. My present paper is
an effort to draw attention towards the problems of this
sector.
August 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : NBFC Industry
COMPANY ANALYSIS : HDFC Bank
BRAND ANALYSIS : Rolex
Concept of the month: Pricing Myopia
2. INTRODUCTION
In pursuance of National Housing Policy of Central
Government, Reserve Bank of India has been
facilitating the flow of credit to housing sector.
During last three years, the housing sector has
emerged as one of the sectors attracting a large
quantum of bank finance. The current focus of
RBI's regulation is to ensure orderly growth of
housing loan portfolio of banks.
3. OBJECTIVE OF STUDY
To get knowledge about “Indian Housing finance
such as operation perform by banks, Different type
of bank product, Services”
To understand current scenario of the “Indian
Housing Finance”
To make comparative analysis of SBI, LIC (public
sector) and HDFC (private sector) banks.
4. DIRECT HOUSING FINANCE
Direct Housing Finance refers to the finance
provided to individuals or groups of individuals
including co-operative societies.
INDIRECT HOUSING FINANCE
Banks should ensure that their indirect housing
finance is by way of term loans to housing finance
institutions, housing boards, other public housing
agencies, etc
5. HOUSING LOANS UNDER PRIORITY
SECTOR
The following housing finance limits will be
considered as Priority Sector Advances:
1. Direct Finance
(i) Loans up to Rs. 15 lakh in rural, semi-urban,
urban and metropolitan areas for construction of
houses by individuals, with the approval of their
Boards.
(ii) Loans up to Rs.1 lakh in rural and semi urban
areas and Rs. 2 lakhs in urban areas for repairs to
damaged houses by individuals.
6. 2 INDIRECT FINANCE
(i) Assistance given to any governmental agency for
construction of houses, or for slum clearance and
rehabilitation of slum dwellers, subject to a ceiling
of Rs. 5 lakh of loan amount per housing unit.
(ii) Assistance given to a non-governmental agency
approved by the National Housing Bank for the
purpose of refinance for reconstruction of houses or
for slum clearance and rehabilitation of slum
dwellers, subject to a ceiling of Rs. 5 lakh of loan
amount per housing unit.
8. Earlier marketing scenario
• Walk-in customers
• Passive marketing, belief that word of mouth from
a satisfied customer was the best form of
advertising
9. Current marketing scenario
With increased competition, buyers’ became more
demanding
Customers want door-step service
Use of direct selling agents (third party distribution
channels)
Captive distribution company
Property fairs and exhibitions
Cross selling products and services
10. STUDY ON HDFC, LIC HOUSING FINANCE
AND SBI HOME FINANCE
Housing Development Finance Corporation
Limited (HDFC)
HDFC is one of the leaders in the Indian housing
finance market with almost 17% market share as on
March 2010.
Serving more than 38 lakh Indian customers as on
March 2011
In the FY 2010-11, it registered a net profit of
`4528.41 crore. It also registered a net profit of `
971 crore in the quarter ended September 30,
2011.
11. STATE BANK OF INDIA HOME FINANCE (SBI)
State Bank of India is another major player in the
Indian housing finance market with 17% of the
market share, same as HDFC's share as on March
2010.
The SBI Housing Loan schemes are specifically
designed to meet the varied requirements of the
customers.
SBI Home Finance registered a net profit of ` 24.63
crore in the year ended March 31, 2009.
12. LIC HOUSING FINANCE LIMITED
LIC Housing Finance is another major player in housing
finance sector in India with about 8% of market share.
Promoted by Life Insurance Corporation of India,
LICHFL has an extensive distribution network with a
strong brand presence. Recently, the company has been
awarded “Consumer Superbrand 2009/10 Status” by
Superbrands Council. In the last financial year (ended
on March 31, 2011),
LICHFL earned a net profit of ` 974.49 crore, comparing
to ` 662.18 in the previous FY.
It also registered a net profit of ` 256.50 crore in April-
June quarter of 2011.
13. HDFC HOUSING FINANCE SERVICES
Home Loan
Home Improvement Loan
Home Extension Loans
Land Purchase Loans
Top – Up Loans
14. LIC HOUSING FINANCE SERVICES
Purchase of flats/house
Construction
Extension of flats/house
Plot purchase
Repairs/renovation to existing flats/house
15. SBI HOUSING FINANCE SERVICES
SBI Surakshit Home Loan
SBI Yuva Home Loan
SBI Home Loan PAL ( Pre-Approved Limit )
SBI Maxgain (Home Loan as an overdraft)
SBI Realty
NRI Home Loans
Gram Niwas
16.
17. CONCLUSION
From the above study we conclude that the net
profit of HDFC is higher than SBI and LIC housing
finance. SBI provides more services and less
interest rate compare to HDFC and LIC housing
finance.