COMPARISON OF HOME LOAN SCHEME OF ICICI BANK WITH 3 OTHER PRIVATE BANKS

AN INTERNSHIP REPORT
On
COMPARISON OF HOME LOAN SCHEME OF
ICICI BANK WITH 3 OTHER PRIVATE BANKS
For
A Project Report submitted in Partial Fulfillment of the Requirement
For the Award the Degree of
MASTER OF BUSINESS ADMINISTRATION
201_-201_
At
_______________________________
SUBMITTED TO: SUBMITTED BY:

ii
STUDENT'S DECLARATION
I hereby declare that the Work conducted at
Submitting in Partial fulfillment of the requirements for the Degree of
MASTER OF BUSNIESS ADMINISTRATION
On
COMPARISON OF HOME LOAN SCHEME OF
ICICI BANK WITH 3 OTHER PRIVATE BANKS
It is my original work and the same has not been submitted for the award of any
other Degree/Diploma/Fellowship or other similar titles or prizes.
Place:

iii
ACKNOWLEDGEMENT
“The satisfaction that accompanies on the successful completion of any
work would be incomplete unless we mention the name of the person, who
made it possible, whose constant guidance and encouragement served as a
beckon of light and crowned our efforts with success.” I consider it a privilege
to express a few words of my gratitude and respect to those who guided and
inspired me in the completion of this project.

iv
PREFACE
Loan acquired from a financial institution to purchase a home.
Home loans consist of an adjustable or fixed interest rate and payment terms.
Home loans may also be referred to as mortgage loans.
A home loan can come in many flavors, the specifics of which will have a major
impact on a large chunk of the buyer’s life. Choosing an adjustable or fixed rate,
extending the loan for ten, fifteen, or even thirty years, and determining just
how much money to invest in the down payment are all critical decisions.
Thus in today economy the home loan is one of the important factor which is
considered in this project report and also compare with other industry leaders
also.

v
CONTENTS
STUDENT'S DECLARATION...................................................................... ii
ACKNOWLEDGEMENT..............................................................................iii
PREFACE.................................................................................................... iv
INTRODUCTION......................................................................................... 1
Home Loan.................................................................................................... 2
Introduction................................................................................................ 2
Importance of Home Loan .......................................................................... 2
Types of Retail Loans ................................................................................. 3
Types of Home Loan .................................................................................. 4
Tax benefits on home loan .......................................................................... 6
Company profile............................................................................................ 7
VISION CONSULTANCY............................................................................ 8
About Housing Financing ........................................................................... 8
ICICI BANK.............................................................................................. 9
HDFC BANK........................................................................................... 12
AXIS BANK............................................................................................ 15
YES BANK.............................................................................................. 18
RESEARCH METHODOLOGY.................................................................. 20
Research Methodology ............................................................................. 21
About the Project...................................................................................... 21
Title of Research ...................................................................................... 21
Objectives of Research.............................................................................. 22

vi
Research Design....................................................................................... 22
Method of data collection.......................................................................... 22
Limitation of study................................................................................... 23
DATA ANALYSIS...................................................................................... 24
COMPARITIVE STATEMENT OF HOME LOAN...................................... 25
RECOMMENDATION & CONCLUSION................................................... 26
RECOMMENDATION................................................................................ 27
SWOT ANALYSIS OF HOUSING FINANCE INDUSTRY...................... 27
SWOT ANALYSIS OF ICICI HOME FINANACE ................................... 28
CONCLUSION........................................................................................... 30
BIBLIOGRAPHY........................................................................................ 31
ANNEXURE............................................................................................... 32

HOME LOAN
Introduction
Home is an integral part of an individual, who since his / her birth and
childhood, dreams to have living space of his / her own. Once in a lifetime
investment requires loan to accomplish it and that is how the home loan comes
into scheme of things. Buying a home is dream for everyone. Owing to the
rising price of properties, it has almost become impossible for an average
earning person to buy a home on a lump sum payment. Therefore, the concept
of home loan has come in existence. There are plethora of housing finance
companies and equal number of banks that offer home loans. The task of
selecting one company and one offer for home loan amidst the thousands
available options have become a very complex task owing to the burgeoning
housing finance market in the country. Apart from this, there are intricate
business jargons and technicalities that make this task more difficult. In this
study, I propose to give the basic information of home loan technicalities, so
that when a person applies for the home loan, he / she can understand the basics
and help themselves remain away from the duping elements in the market.
Importance of Home Loan
 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 banks and the housing finance companies are literally

falling over each other to lure the prospective home-seekers.
 Notwithstanding the tax breaks and generous lending rates, a lot of people
still cannot arrange resources for the down-payment, which comes out to be
at least 15 per cent of the property value. Taking cognizance of the situation,
Banks are coming up with home loan products called ‘zero down payment
loans’ wherein 100 per cent funding is provided for select properties. These
lucrative offers are other major reasons for why people are opting for loans.
 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 7% p.a. (considering all tax breaks).
 For salaried employees, housing loans are the best way to avail of tax
benefits. Many people simply go for the home loans in order to avail these
benefits. Interest payments up to Rs. 1.5 lakh on housing loans are
deductible from the taxable income and there is a further deduction of
taxable income maximum up to ` 1 lakh against repayment of principal
portion per annum. In case a person stays in a rented house, the cost of the
loan will be nearly zero per cent since he will be saving a decent amount on
rent. All the banks offer many types of loan and advances to the customers
like retail loan, term loan, working capital finance, overdraft, export import
finance and project finance.
Types of Retail Loans
Bank offers a wide range of retail loans to meet customer diverse needs.
Whether the need is for a new house, child's education, purchase of a new car or
home appliances, banks’ unique and need specific loans enable customer to
convert customer dreams to realities.

1. Home Loan
2. Home Loans to NRIs / PIOs
3. Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
4. Loan Against Future Rent Receivables
5. Mortgage Loan
6. Education Loan
7. Car Loan
8. Two Wheeler Loan
9. Loan to Professionals
10.Traders Loan
11.Personal Loan
12.Loan for financing Individuals for subscription to Public Issues / IPO
13.Reverse Mortgage Loan
Types of Home Loan
Various kinds of home loans are available in India. They are described below:-
1. Home Purchase Loan: These are the basic home loans for the purchase of
a new home. These loans are given for purchase of a new or already built
flat/bungalow/row-house.
2. Home Improvement Loan: These loans are given for implementing repair
works and renovations in a home that has already been purchased by the
customer. It may be requested for external works like structural repairs,
waterproofing or internal works like tiling and flooring, plumbing,
electrical work, painting, etc.
3. Home Construction Loan: These loans are available for the construction

of a new home. The documents required by the banks or bank for
granting customer a home construction loans are slightly different from
the home purchase loans. Depending upon the fact that when customer
bought the land, the lending party would or would not include the land
cost as a component, to value the total cost of the property.
4. Home Extension Loan: Home Extension Loans are given for expanding
or extending an existing home. For example addition of an extra room,
etc. For this kind of loan, customer needs to have requisite approvals
from the relevant municipal corporation.
5. Land Purchase Loan: Land Purchase Loans are available for purchase of
land for both home construction or investment purposes. Therefore,
customer can be granted this loan even if customer is not planning to
construct any building on it in the near future. However, customer has to
complete construction within tenure of three years on the same land.
6. Bridge Loan: Bridge Loans are designed for people who wish to sell the
existing home and purchase another. The bridge loan helps finance the
new home, until a buyer is found for the old home.
7. Balance Transfer: Balance Transfer loans help customer to pay off an
existing home loan and avail the option of a loan with a lower rate of
interest. Customer can transfer the balance of the existing home loan to
either the same banks or any another banks.
8. Stamp Duty Loan: These loans are sanctioned to pay the stamp duty
amount that needs to be paid on the purchase of property.
9. NRI Home Loan: This is a special home loan scheme for the Non-
Resident Indians (NRI) who wishes to build or buy a home or land
property in India. They are offered attractive housing finance plans with
suitable reimbursement options by many banks in the country.

Tax benefits on home loan
Tax Benefits On Principal Repaid On Interest Paid
First Home – Self Occupied
No change – Upto Rs. One
Lakh Fifty Thousand (Rs.
Two Lakh for senior citizens)
Up to Rs. Two Lakh if
completed within 3 years
from the end of the financial
year in which loan is taken,
else Rs. 30,000.
For loans taken from the FY
2016-17, Up to Rs. Two
Lakh if completed within 5
years from the end of the
financial year in which loan
is taken, else Rs. 30,000.
Additional exemption of upto
Rs. 50,000/- on interest paid
for loans upto Rs. 35 lakhs
with cost of home upto Rs.
50 lakhs
First Home – Rented/
Vacant
No change – Upto Rs. One
Lakh Fifty Thousand (Rs.
Two Lakh for senior citizens)
if staying in a different city
for work
No change – On entire
interest paid without any
limit
Second Home None
No change – On entire
interest paid without any
limit
Under Constrn. None
No change – The interest
paid can be claimed in equal
parts in five fin. years post
completion or handing over.

CHAPTER 2
COMPANY PROFILE

VISION CONSULTANCY
The vision Consultancy stands as an epitome for dedication, expertise and the
drive to provide our customers the service for which they chose us over the rest.
A company that has been enabling many in fulfilling their dreams, The vision
Consultancy is an organization where the difficult is made easy. Providing the
best loans by tailoring them to our customer’s needs, The vision Consultancy
has risen to being the most preferred loan consultancy in the country.
Started as a Direct Sales Associate for ICICI home finance, under the leadership
of Mr. Mohan Solanki, who built a team of 15 seasoned managers with more
than 3 years of total experience, The vision Consultancy as seen rapid growth in
the 3 years of its operations. This was possible, not only by the values and
qualities exhibited by The vision Consultancy as an organization, but also by
the power and influence of a strong sponsor.
Today, The vision Consultancy operates out of 5 cities in the Udaipur region.
About Housing Financing
Housing finance is a relatively new concept in India comparing to other
financial services that are widely available in the country since a long year back.
However, the speedy development in housing and various housing activities
have understandably led to the growth of Indian housing finance market.
It was in the year 1970 when Housing and Urban Development Corporation
(HUDCO) was established to finance various housing and urban infrastructure
activities. However, the Housing Development Finance Corporation (HDFC)
was the India's first private sector housing finance company came into existence
in 1977. Since then, the housing finance in India has been flying high. It's

expected to grow at a growth rate of 36% in the coming years.
List of Top Housing Finance Companies in India
 Housing Development Finance Corporation Limited (HDFC)
 State Bank of India Home Finance (SBI)
 Housing Urban Development Corporation (HUDCO)
 ICICI Home Finance Company Limited
 Axis bank Home loan
 IndusInd Bank Home Loan
 IDBI Home finance Limited (IHFL)
 PNB Housing Finance Limited
 Dewan Housing Finance Corporation Limited (DHFL)
 Can Fin Homes Limited (CFHL)
In this report we have taken 4 Private companies i.e. ICICI Bank, HDFC Bank,
YES Bank and AXIS Bank.
ICICI BANK
ICICI Bank is India's largest private sector bank with total assets of Rs.
7,206.95 billion (US$ 109 billion) at March 31, 2016 and profit after tax Rs.
97.26 billion (US$ 1,468 million) for the year ended March 31, 2016. ICICI
Bank currently has a network of 4,450 Branches and 14,103 ATM's across
India.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly-owned subsidiary. ICICI's shareholding
in ICICI Bank was reduced to 46% through a public offering of shares in India
in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in

fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955
at the initiative of the World Bank, the Government of India and representatives
of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing
to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group
offering a wide variety of products and services, both directly and through a
number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become
the first Indian company and the first bank or financial institution from non-
Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context
of the emerging competitive scenario in the Indian banking industry, and the
move towards universal banking, the managements of ICICI and ICICI Bank
formed the view that the merger of ICICI with ICICI Bank would be the optimal
strategic alternative for both entities, and would create the optimal legal
structure for the ICICI group's universal banking strategy. The merger would
enhance value for ICICI shareholders through the merged entity's access to low-
cost deposits, greater opportunities for earning fee-based income and the ability
to participate in the payments system and provide transaction-banking services.
The merger would enhance value for ICICI Bank shareholders through a large
capital base and scale of operations, seamless access to ICICI's strong corporate
relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based
services, and access to the vast talent pool of ICICI and its subsidiaries.

Documents Required for Home Loan
Getting a home loan from ICICI Bank is easy and quick. We keep the
paperwork and other formalities to a minimum. Proof of your identity, address
and income are some of the key documents that are required to be submitted for
ICICI Bank home loan.
Moreover, if you are an existing customer of ICICI Bank, you can now enjoy
the benefit of reduced documentation.
Documents Salaried
Self
Employed
Professional
Self
Employed
Non
Professional
Application form with
photograph duly signed
Identity, residence and age proof
Last 6 months bank statements
Last 3 months Salary-slips
Processing fee cheque
Form 16 / Income Tax Returns
Proofof business existence
Business profile
Education qualification certificate
and proofof business existence
Last 3 years Income Tax Returns
with computation of Income
Last 3 years CA Certified /
Audited Balance Sheet and Profit
& Loss Account

Post closure of loan, documents required for handover of original Property
documents
 Power Of Attorney format for collection of original Property documents
In case of death of Loan Account holder:
 Request letter from the Legal Heir/ Claimant/ Nominee(s) for handover of
Property documents
 Letter of relinquishment for relinquishing right (Nominee/ Legal heir) in
favour of Legal Heirs/ Nominees/ surviving owners for handover of
Property documents
Documents
 KYC-PAN, address & ID proof
 Income proof, bank statement and one photograph
Perks
 Door step service
 E-approval
 Part-payment available
 Top up loan available
 No guarantor required
 Balance transfer
HDFC BANK
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 liberalisation 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.
HDFC Bank's mission is to be a World Class Indian Bank. The objective is to
build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale customer
segments, and to achieve healthy growth in profitability, consistent with the
bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values:
Operational Excellence, Customer Focus, Product Leadership, People and
Sustainability.
HDFC Bank brings HDFC home loans to your doorstep. Over 3 decades of
exclusive experience, a dedicated team of experts and a complete package to
meet all your housing finance needs, HDFC Home Loans, help you realize your
dream.
The HDFC Home Loan Advantage
 Pioneer of Housing Finance in India with over 35 years of lending
experience
 For over 3 decades, shared the hopes and joys of 4.4 million customers
who have been nurturing the dream of home ownership
 Most experienced and empowered personnel to ensure smooth & easy
processing
 Transparent dealing. All charges mentioned upfront while giving you the
loan quote. No hidden charges
 Counseling and advisory services for acquiring a property
 Loan approval even before a property is selected
 Loan from any HDFC office for purchase of home anywhere in India
 Flexible loan repayment options

 Free & safe document storage
HDFC offers specially designed home loans for:
 Agriculturists
 Planters
 Horticulturists
 Dairy Farmers
Loans available for:
 Construction of houses on residential plots
 Purchase of a new house
 Renovation & Extension of existing house
Rural Housing Finance Features
 Special Home Loan Scheme for Agriculturists:
 Loans for farmers to buy or construct houses/apartments in several of
cities and towns of their choice.
 Home loans in residential areas of Villages
 Loan eligibility on the basis of agricultural land owned and the kind of
corps being cultivated by farmers.
 No mortgage of agricultural land required for the purpose of home loans.
 No mandatory requirement of Income Tax Returns from farmers applying
for home loans.
 Rural Housing Finance for Salaried & Self Employed: :
 Home Loans for Government & Private Sector Employees for rural
properties in residential areas.
 Home Loans for Businessmen, Traders etc. who are filing Income Tax
Returns for the last three years for properties in rural residential areas.
 Home Loans for NRIs also in rural residential areas.

Documents
Agriculturists Salaried Customers Businessmen -
Professionals
photograph
photograph
photograph
Identity and Residence
Proof
Proof
Proof
Last 6 months bank
statements
Last 6 months bank
statements
Last 6 months bank
statements
Processing fee cheque Processing fee cheque Processing fee cheque
Income Documents
Copies of Title
Documents of
Agricultural Land
depicting Land holding
Latest Salary Slip Education Qualifications
Certificate and Proof of
business
Copies of Title
Documents of
Agricultural Land
depicting crops being
cultivated
Form 16 Business Profile and Last 3
years Income Tax returns
(self and business)
Statement of last 2
years of loans availed
Last 3 years Profit /Loss
and Balance Sheet
AXIS BANK
Axis Bank is the third largest private sector bank in India. The Bank offers the
entire spectrum of financial services to customer segments covering Large and
Mid-Corporates, MSME, Agriculture and Retail Businesses.

The Bank has a large footprint of 2904 domestic branches (including extension
counters) and 12,743 ATMs spread across the country as on 31st March 2016.
The overseas operations of the Bank are spread over nine international offices
with branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo and
Shanghai; representative offices at Dhaka, Dubai, Abu Dhabi and an overseas
subsidiary at London, UK. The international offices focus on corporate lending,
trade finance, syndication, investment banking and liability businesses.
Axis Bank offers affordable and flexible housing loans that can turn your dream
of owning a home into reality. If rising real estate prices have pushed the house
you coveted beyond your budget, Axis Bank’s unmatched home loans will put it
within reach. The attractive interest rates and minimal processing fees make our
home finance products a first choice for savvy buyers. In addition, features such
as flexible tenures, transparent processing and quick service have made our
products stand out among the best home loans in India.
We have products to suit every budget, taste and need. Whether you are self-
employed or salaried, want a floating or fixed rate, Axis Bank will offer a loan
that is just right for you.
Features of Axis Bank Home Loans
Axis Bank housing loans are designed for today’s home-hunter. Our easy home
loans are rich in features and offer a number of benefits.
 Attractive interest rates: We offer attractive interest rates that make your
housing loans affordable and easier on your pocket every month.
 Flexible rates: Choose between fixed and floating rate options depending
on which way you think interest rates are moving.
 Balance transfer facility: Not satisfied with your existing Home Loan
provider? You can transfer your Home Loan to us without any hassles.
 Doorstep service: You don't have to go the bank for Home Loans; the

bank will come to your doorstep. Perfect for those leading busy lives.
 Nil prepayment charges* : Come into some money and want to pay off
your housing loan early? You can do that at Axis Bank without worrying
about prepayment charges.
* Valid only on floating interest rate Home Loans.
 Quick and transparent processing: Special Benefits available
for Premium Banking customers. To know more, contact your
Relationship Manager today!
 Longer tenure for smaller EMIs: You can avail a home loan with up to
30 years tenure, giving you the benefit paying less EMI per month
List of Home Loan documents required
The following documents are required along with your loan application:
Purpose Salaried Self Employed
Proofof Identity
and Address
PassportorVoter's ID card or Driving License or Job
Card issued by NREGA or Adhaar Card or PAN card
(PAN Card only as identity proof)or any other
document as acceptable to the Bank
Proofof income
Latest 3 Months salary
slip showing all
deductions and Form
16
IT returns for the last 2 years
and computation of income
for the last 2 years certified by
a CA
Bank statement or
Pass Book where
salary or income is
credited
Last 6 months Last 6 months
Guarantor form Optional Optional

YES BANK
YES BANK, India’s fifth largest private sector Bank, is an outcome of the
professional entrepreneurship of its Founder Rana Kapoor and his highly
competent top management team, to establish a high quality, customer centric,
service driven, bank catering to the “Sunrise Sector of India”. YES BANK is
the only Greenfield Bank license awarded by the RBI in the last two decades,
associated with the finest pedigree investors. YES BANK, a "Full Service
Commercial Bank”, has steadily built a Corporate, Retail & SME Banking
franchise, with a comprehensive product suite of Financial Markets, Investment
Banking, Corporate Finance, Branch Banking, Business and Transaction
Banking, and Wealth Management business lines across the country.
YES BANK offers you, our valuable customers, a wide range of loans that will
fulfill your every need. Our wide range of loans will enable you to move into
your own home, or buy your dream vehicle, or enhance your business, or treat
your family to that perfect vacation you’ve always dreamt of.
Keeping this in mind, we have introduced loan products including Home Loans,
YES KHUSHI Affordable Home Loans, Car Loans, Loan Against Property,
Personal Loans, Loan Against Gold, Commercial Vehicle Loans, customized to
suit your needs.
What’s more our quick and easy loan application processing will ensure that
your application is processed in minimum time and in a hassle-free manner.
Documents Required
 Proof of Identity and Signature
 Proof of Address (Office and Residence)
 Income Documents:
 Salaried: 2 Latest salary slips and IT Returns / Form 16 for last 2 years
 Self Employed Professionals: Last 2 years IT Returns with

computation of income, audited Balance Sheet and Profit & Loss
account including tax audit report if applicable and proof of turnover
vide latest sales / service tax returns
 Self Employed Businessmen / Retail SME Enterprises: Last 2 years IT
Returns with computation of income, audited Balance Sheet and Profit
& Loss account including tax audit report if applicable and proof of
turnover vide latest sales / service tax returns
 Last 6 months bank statement of salary / main operating bank account
 Details of all existing loans
 Additional Documents in case of Partnership Firms: Partnership Deed

CHAPTER 3
RESEARCH METHODOLOGY

Research Methodology
Research is the process of systematic and in-depth study or search for any
particular topic, subject or area of investigation, backed by data collection.
Complication, presentation and interpretation of relevant details or data .It is a
careful search or inquiry into any subject matter, which is an endeavor to
discover or find out valuable facts that would be useful for further application or
utilization.
Research methodology is the systematic problem analysis, model building and
fact finding for the purpose of improved decision making. It is the collection
summary and analysis of data regarding goods and services it helps in deciding
the nature and tend demand. Research may involve a scientific study or
experimentation and result in discovery or invention, which would aid either
scientific development or decision making.
About the Project
This project is based on the study of “Comparison of Home Loan Scheme of
ICICI Bank with HDFC Bank, AXIS Bank and YES Bank”. An insight view of
the project will encompass- what it is all about , what it aims to achieve, what is
its purpose and scope , the various methods used for collecting data and their
sources, including literature survey done, further specifying the limitation of our
study and in the last drawing inferences from the learning so far.
Title of Research
“Comparisonof Home Loan Scheme of ICICI Bank with 3 Other Private
Banks”

Objectives of Research
 Comparison of Home Loan Scheme of ICICI Bank with HDFC Bank,
AXIS Bank and YES Bank.
Research Design
The research design refers to the overall strategy that you choose to integrate the
different components of the study in a coherent and logical way, thereby,
ensuring you will effectively address the research problem; it constitutes the
blueprint for the collection, measurement, and analysis of data.
A method and system a statistical analysis based on past history to facilitate the
investment process. Respective fund using a principal factor such as cumulative
growth and stability. For tracking investment, upper and lower control limits are
defined according to standard deviation of average total return over
predetermine period of time to improve chances of the investors achieving a
profit as well as a near optimum performance. This research methodology helps
us to give information about the opportunities of SBI mutual funds investment.
It will help to study the market of SBI mutual funds better.
Method of data collection
There are many methods of data collection which can be used according to
nature and type of research. I will use following data for the research purpose.
My research only based on secondary data.
 Articles
 Factsheet
 Management generals
 Annual report
 Research papers

 Internet
 News papers
Limitation of study
 Time constraint
 Data availability

CHAPTER 4
DATA ANALYSIS

COMPARITIVE STATEMENT OF HOME LOAN
PARTICULAR
S
ICICI HDFC AXIS YES
ROI(FIXED)
1-3 Yrs. -
9.75%
5-10Yrs.-
9.95%
10 & above
Yrs.-10.30%
2-3 Yrs. -
9.55%
5-10Yrs.-
9.95%
10 & above
Yrs.-10.05%
1-3 Yrs. -
9.75%
5-10Yrs.-
9.95%
10 & above
Yrs.-10.40%
1-3 Yrs. -
9.75%
5-10Yrs.-
9.95%
10 & above
Yrs.-10.25%
ROI(FLOATIN
G)
9.45% to
9.70%
9.55% to
9.60%
9.40% to
11.75%
10.25% to
10.75%
PROCESSING
FEE
0.5% (min.
₹11,500)
0% to 0.5%
(max.
₹11,500)
₹2,875 to
₹11,500
Up to
₹11,500
PENALTY 2% 2% 2% NIL
TENURE 30 years 30 years 20 years 25 years
MINIMUM
AGE
21 21 24 23
MAXIMUM
AGE
65 60 65 60

CHAPTER 5
RECOMMENDATION &
CONCLUSION

RECOMMENDATION
 To broaden the customer base the vast middle income strata should be
fully exploited.
 Simplify the procedure, reduce service charges & demand only the basic
essential proof.
 Most banks are reluctant to advance loan to the service class. E.g. law
years, police officers etc. this aspect must be exploited.
 Adoption of flexible & more lenient penalty should the
 Customer fails to deposit the payment on time. The penalty should be
case to case basis rather than the same for the entire customer base.
 Offer multiple repayment loans services. Class to be exploited by offering
special reduced
 Rates & linking the repayment from the source where the pay cheque to
the employee is issued. This need to undergo special contract with
government organization to ensure implementation
SWOT ANALYSIS OF HOUSING FINANCE INDUSTRY
 STRENGTHS :-
1. The industry has been witnessing fast growth rate, which is 6%
growth
2. The market faces a high demand curve, thoroughly mismatched by a
low supply curve
3. Investment is based in assets that are securities & those that have
historically appreciate rapidly.
4. Tax benefit & other facilities provided on loan repayments.

 WEEKNESSES :-
1. Increasing demand in rural market due to lack of proper retrieval
procedures so whilst
2. The rural market offers a higher rate of return; it has a higher risk &
default rate.
3. Many legal impendent exist, deferring purchase of certain types of
property beyond a certain extent thereby negatively impacting weak
mortgage laws, resulting in an increase in risk compo ending
 OPPORTUNITIES
1. The housing industry faces a severe shortage of houses.
2. While the loan facility is backed by the security of property this sector
represent a low margin But on the low margin but on the same line low
risk segment.
3. Mortgage Based securities use of method such as door to door collection
of installments assessing the creditworthiness of the prospective client
and providing for group securities.
4. The roles of NHB in refinancing & providing regulation of housing
finance system.
5. The government’s initiatives to promote the sector & its contribution in
uplifting the sector.
 THREATS
The industry faces increased competition as more & more foreign backs &
Housing Finance Companies are providing loan facility.
SWOT ANALYSIS OF ICICI HOME FINANACE
 STRENGTH

1) Save substantial interest.
2) Prepay whenever the customer.
3) Reduce their loan outstanding.
4) Access the surplus finds anytime.
5) Use surplus funds to invest when the right opportunities arises.
 WEAKNESS
Product is very good but it is mainly suitable for higher income group & is not
suitable for the Middle income group
 OPPORTUNITIES
There is ample scope for financing flats & apartments for the salaried class in
the higher income Group.
 THREATS
1) Nationalized banks like SBI, Union Bank, PNB.
2) Private Banks likes HDFC, AXIS Bank and YES Bank with its home
credit scheme.

CONCLUSION
1) The Indian customer has come a long way from purchasing to fulfilling
their needs from buying a house customers now grab everything that
comes their way but they do their own survey of optimum loans; same is
the case with banks & housing loans
2) With innumerable choices before him, the customer is needed then king.
3) It is therefore imperative that if the bank has to succeed in competitive
world, it should be technological starry.
4) Customer centric progressive driven by highest standard of cooperative
governance & guided by sound ethical values & above all should have
personalized customer services.
5) There is scope of exploiting the vast middle income group by releasing
loans with special interest rate, which would be beneficial to both parties.

BIBLIOGRAPHY
1) Banking Finance
2) Business standard
3) Economic Times
4) ICICI Bank
5) HDFC bank
6) Yes bank
7) Axis bank
8) Google
9) Wikipedia

ANNEXURE
EMI Calculator of ICICI home loan
The direct link to the calculator is:
http://www.icicibank.com/calculators/home-loan-emi-calculator.html

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