This document discusses housing finance in India. It provides an introduction to housing loans and the Reserve Bank of India's role in facilitating credit to the housing sector. The objectives of the study are to understand Indian housing finance operations, products, and services offered by banks. It also aims to provide a comparative analysis of HDFC, LIC Housing Finance, and SBI Home Finance. Key details about loan types, eligibility, and growth in housing finance are covered for each organization.

1. HOUSING FINANCE
By :
Mayuri jadav 1144
Minaxi solanki 1125

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.

7. GROWTH OF HOUSING FINANCE

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

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.

18. Thank you