The document discusses home loans and HDFC Bank. It provides information on: 1. Choosing a good housing finance company is important as a home loan is a long term commitment of 15-20 years. Factors like expertise, service quality, domain knowledge and transparency are critical. 2. Home loans make sense for long-term savings as they allow common people to own a home while saving money over time. With rising real estate prices, many opt for housing loans to buy their dream home. 3. Even if one can pay cash, loans are beneficial as they provide good returns while interest rates are lower than investment returns. Tax benefits also make loans preferable to full payment.

1. WHAT IS A HOME LOAN ?
 It is important to choose a good housing finance company which can handhold the
customer right through his home buying process. Since a home loan is a long term
commitment of 15-20 years, several factors like expertise, quality of service, in-
depth domain knowledge and the company’s level of commitment and transparency
right through, the loan procedures, the fine print, quality of services offered and safe
retrieval of the title deed are critical.

2. THE NEED FOR HOME LOANS…
 The need for home loans arises not because property prices are heading upwards
all the time but because home loans make great sense from a long-term savings
perspective. Not only are home loans a handy tool for the common man to own a
roof over his head but they also help save money in the long run.
 With skyrocketing real estate prices, people are increasingly opting for housing
loans to acquire their dream home. Interest rates are coming down all the time and
the housing finance companies are literally falling over each other to lure the
prospective home-seekers.
 Even if one can afford to buy a home with one's own money, home loans should be
availed because they act as good savings instrument. According to industry
estimates, the long term average return in investing in a home is about 20% p.a.
while the average cost of borrowing funds in the market today is about 10% p.a.
(considering all tax breaks).

3. LOAN V/S FULL PAYMENT
 1.Tax benefits
 Home loans-home loans are always tax free (wherein 80% is non taxable and only
the rest 20% is taxable)
 Full payment-if a customer is paying the house with the full payment he will be taxed
on the entire amount i.e. 100%.
 For salaried employees, housing loans are the best way to avail tax benefits. Many
people simply go for the home loans in order to avail these benefits. Interest
payments up to Rs. 1.5 lac on housing loans are deductible from the taxable income
and there is a further tax deduction of Rs. 4,000 against repayment of principal.
 2.Black money
 Home loans-for a home loan the 80% of the cost has to be in white because it is
done legally with the banks.
 Full payment-may have the use of black money because there are no legal
transactions done.

4. HDFC BANK
We Understand Your World

5. NETWORK
 761 branches
 1977 ATM’s in the country
 327 cities in India
 All branches are OLRT
connected
 16 branches in Middle east
 6 in Africa
 Representative offices in Hong
Kong, NewYork, London &
Singapore

6. 4 P

7. Old Segmentation strategy
 Demographics variables
 Location
- Metros & divisional cities
 Occupation
- Business person
- Salaried class (both govt. & private)
 Age
- Senior citizens
- Minor
 psychographic variables
 Lifestyle
- People who believes in modern banking with higher set
of service i. e. internet banking (incontact, mobile refill,
travel currency card etc.)

8. Old Targeting strategy
 Target market
 Retail banking market : this segment
is for retail investors & provide them
short term financial credit for their
personal, house hold needs.

9. Old Positioning strategy
 HDFC Bank has positioned itself as a bank
which gives higher standard of services
through product innovation for the diverse
need of individual & corporate clients. So
they want to highlight following points in
their positioning segment :
-Customer centric
-Service oriented
-Product innovation

10. SWOT analysis
Strengths
• Support of various promoters
• High level of services
• Knowledge of Indian Market
Weaknesses
• RBI Regulations

11. CONTINUE…….
Opportunities
- Growing Indian banking sector.
- People are becoming more service
oriented
- In the global market.
Threats
• From various competitors
-Foreign banks
-govt. banks
• Future market trends.

12. A new Segmentation strategy
 Demographics variables
 Location
- Metros & Rural areas
 Occupation
- Business person
- * High income & Low Income group
- Salaried class (both govt. & private)
- * High income & Low Income group
 Age
- Adults
- Minor
- Exclude ones- senior citizens
 psychographic variables
 Lifestyle
- People who believes in modern banking with higher set of service i. e. internet banking
(incontact, mobile refill, travel currency card etc.)
- Insurance class
- Security class – high rated securities
 City attributes (regards to price)
• Different levels
• Emerging levels

13. A new Targeting strategy
 Target market
 Retail banking market : this segment
is for retail investors & provide them
short term financial credit for their
personal, house hold needs.

14. A new Positioning strategy
 HDFC Bank has positioned itself as a bank which gives
higher standard of services through product
innovation for the diverse need of individual &
corporate clients. So they want to highlight following
points in their positioning segment :
-Customer centric
-Place oriented
-A new home
-Service oriented
-Product innovation – a backup of your old house

15.  BY VAIBHAV JASANI