2. • “ Housing finance is what allows for the
production and consumption of housing. It
refers to the money we use to build and
maintain the nation’s housing stock. But it also
refers to the money we need to pay for it, in
the form of rents, mortgage loans and
repayments.”
3. • 1. EMI - Equated Monthly Installment (EMI) is a
fixed payment the borrower makes to the lender to
pay off the principal and the interest at a specific
date each month, so that the entire loan is paid off in
full.
• 2. Monthly Reducing Balance - With the Monthly
Reducing balance, the principal gets deducted at the
end of every month and the interest is calculated on
the outstanding principal amount at the end of the
month.
• 3. Annual Reducing Balance - In Annual Reducing
Balance, the principal is deducted at the end of the
year and the interest is calculated on the outstanding
principal amount at the end of the year.
4. • 4. Floating Rate of Interest - A Floating Rate of
interest implies that the interest rate moves up and down
along an index or with the market trends. This means
that the borrower has a risk of paying more in case the
interest rates go up.
• 5. Fixed Rate of Interest - A Fixed Rate of Interest
means an interest rate that will remain at its set value
during the entire term of the loan.
• 6. Processing Charge - A Processing Charge is a fee
that is payable to the lender in applying for the loan.
• 7. Commitment Fee -It is charged by the lender for the
funds in the case the loan is not availed within a
stipulated time period.
• 8. Miscellaneous Cost - This covers fees for
consultation, documentation etc.
• 9. Prepayment Penalties - It is a penalty that is
assessed if the loan is paid back before the postulated
time period.
5. • In India the following institutions provide
long term housing finance -
Commercial bank
Cooperative banks
Regional rural banks
Agriculture & rural development
bank
Housing finance companies
Cooperative housing finance
societies
• Top 10 Housing Finance Companies in
India -
HDFC REPCO HOME
INDIABULLS CAN FIN HOMES
LIC HOUSING FINANCE GIC HOUSING FINANCE
GRAH FINANCE SHRISTRI INFA
DEWAN HOUSING CREAST VENTURES
6. • Housing Development Finance Corporation
Limited or HDFC is an Indian financial conglomerate based
in Mumbai, India.
• It is a major player for housing finance in India. It also has
a presence in banking, life and general insurance, asset
management, venture capital and education loans.
• It was founded in 1977 as the first specialized mortgage
company in India.
• HDFC was promoted by the Industrial Credit and Investment
Corporation of India. Hasmukhbhai Parekh played a key role
in the foundation of this company.
• In 2000, HDFC Asset Management company launched its
mutual fund schemes. In the same year, IRDA granted
registration to HDFC Standard Life Insurance, as the first
private sector life insurance company in India.
• Aditya puri is present CEO & MD of HDFC .
7. The company provides housing finance to individuals and
corporate for purchase/construction of residential houses. It
is one of the largest providers of housing loans in India.[In
its Annual Report for financial year 2012-13, the company
has disclosed that it has disbursed approx. INR 456,000
crores in 35 years of its existence for a total of 4.4 million
housing units.
• The average loan profile amounts to INR 2.18 million (US$
35,160) which lasts for about 13 years and covers approx.
65% of actual property value.
• The equity shares of HDFC are listed on Bombay Stock
Exchange where it is a constituent of the BSE
SENSEX index,[and the National Stock Exchange of
India where it is a constituent of the S&P CNX Nifty.
• For a loan amount up to Rs 30 lakh and the tenure being 15-
20 years, Floating interest rate of 10.15 %
• HDFC charge 0.5 per cent of the loan amount as
processing fees.
• BSE = 1027.75 NSE=1027.95
8. • The Indiabulls Group is an Indian conglomerate
headquartered in Gurgaon, India. It was founded by Mr.
Sameer Gehlot (Chairman) in 1999, and operates in sectors
spread across housing finance, real estate & wealth
management.
• The three main independently listed companies of the group
are Indiabulls Housing Finance Limited (IBHFL), Indiabulls
Real Estate Limited (IBREL), and Indiabulls Ventures Limited
(IBVL).
• The Indiabulls Group has a net worth of Rs. 15,332 Cr. as of
30 June, 15 and is one of the top dividend paying groups
amongst the Indian listed promoter owned
group/companies.
9. • In 2013, Indiabulls Financial Services reverse merged
with its own subsidiary Indiabulls Housing Finance to
form the flagship company of the group .
• All the group companies are independently listed on
the Bombay Stock Exchange and the National Stock
Exchange. The combined market capitalization of the
companies is Rs. 32,540 cr. as of August 2015.
• India Bulls ( Up to Rs 25 lakh) the Floating interest
rate of 10.15 per cent. It charges Rs 7,500 plus
taxes as a processing fee.
• BSE = 777.25 NSE = 777.15
• Sameer Gehlot is present CEO & MD of indiabulls
group.
10. • LIC Housing Finance Limited (LIC HFL) is
one of the largest Housing Finance company in
India having its Registered and Corporate office
at Mumbai.
• Incorporated on 19 June 1989 under the
Companies Act, 1956, the Company was
promoted by Life Insurance Corporation of
India and went public in the year 1994.
•
• The Company launched its GDR issue in 2004.
The Authorized Capital of the Company is
Rs.1500 Million (Rs.150 Crores) and its paid up
Capital is Rs.1009.9 Million ( Rs.100.99 Crores).
11. • It is a subsidiary of HDFC.
• It is offering loans to individuals for purchase,
construction and renovation of dwelling units.
• It also offers loans to the self-employed segment
where formal income proofs are not available.
• It has a retail network of 136 offices across 7
states in India.
• Housing loan rates start from 10.00% based on
credit score of applicant.
• BSE = 246.85 NSE = 247.75
12. • 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 Centres / Office Space
and also for purchase of equipments & to persons engaged in the business
of construction of houses or flats for residential purpose and to be sold by
them.
• The Company is registered with National Housing Bank and listed on
the National Stock Exchange (NSE) & Bombay Stock Exchange Limited
(BSE). The GDR's are listed on the Luxembourg Stock Exchange.
• It has 7 regional offices, 16 back-offices and 222 marketing units across
India.
• Sunita Sharma is MD & CEO of LIC housing finance.
• Interest rate = 10.1% - 12%
• BSE = 438.30 NSE = 439.25
13. • DHFL is one of India’s leading housing finance company.
• The Company was founded in 1984 by late Shri Rajesh
Kumar Wadhawan, with a vision to enable home ownership
amongst the low and middle income customer segment in
semi-urban & rural India.
• Today, DHFL has presence across 550 locations in India, and
2 international representative offices in UK & UAE. These
offices deal in a variety of home loan products.
• DHFL offers a vast array of Home Loan products, including
Home Loan, Plot Loan, Construction Loan, Loan against
Property, Mortgage Loans and Project Loans. The Company
also offers a range of Fixed Deposit products that ensure
high yield, safety and liquidity.
• DHFL is amongst the first companies in India to introduce
insurance as a value-added product with housing finance.
14. • DHFL has equity shares listed on BSE and NSE.
• In 2003-04, DHFL and its promoters acquired 91.22%
equity stake in Vysya Bank Housing Finance Limited,This
entity was later renamed to DHFL Vysya Housing Finance
Limited.
• in 2010-11, DHFL promoted a housing finance company
called "Aadhar Housing Finance Private Limited"(AHFPL).
This was created chiefly for making housing finance more
accessible to economically weaker sections of the society.
• In the month of November 2014, DHFL also signed Shah
Rukh Khan as its brand ambassador which is the
company’s first such brand association since its 30 years
of being in the business.
• Floating interest rate is of 10.15 per cent & charges Rs
5000 plus document charges and taxes as a processing
fee.
• Kapil Wadhawan - Chairman & Managing Director
• BSE = 446.75 NSE = 446.25
