PROJECT REPORT
ON
“STUDY OF HOME LOAN”
AT
LIC HOUSING FINANCE LTD. AREA OFFICE PIMPRI
BY
Mr. YASHWANTRAO PANDURANG LAVATE
SUBMITTED TO
Devotion is important, knowledge is important, but this knowledge, devotion will be fruitless
if these factors are put in the wrong direction. So we desperately need a guide to make our
way clear in foggy situations. I have utilized this valuable suggestion in making my report
attractive and accurate. I am greatly indebted to all those, whose suggestion has formed the
bases of this report.
Firstly I would like to thank Mr. SHYAM GOWANE (Area Manager) LIC HOUSING
FINANCE LTD, PIMPRI, PUNE, for giving me the opportunity to work on this project.
I am highly indebted to Ms. Sunita Sharma (Managing Director & Chief Executive
Officer) & Mr. S. K. Roy (Chairman) for his invaluable cooperation and his unending
support, for guiding me at every step.
Finally I would like thank to all respondent for their helpful criticism and useful suggestions,
which contributed towards successful completion of my project.
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
“Boleat (1985) for instance describes housing finance in terms of the flow of funds to
home buyers”.
“According to Lea (2000) housing finance includes a broad array of institutional
arrangements which include both general and specialized institutions acting as primary or
secondary lenders, with the common purpose of channelling funds from savers to households
demanding housing loans”.
“Warnock and Warnock (2007) describe housing finance as the provision of long-term
financing for house purchase”.
“King (2009) refers to housing finance as the funds used for building and maintaining the
housing stock of a country”.
“Chiquier and Lea (2009) look at housing finance as a link between multi-sector issues
which are in a continuous process of change on account of the economic, cultural, and
regulatory environment of a country”.
They consider housing finance as encompassing more than residential mortgage credit
and include housing developer finance, rental finance as well as housing related micro-
finance within the scope of the term housing finance. Housing finance covers a wide range of
issues, and the concept often varies in its coverage across different countries; however, it has
been defined mainly in terms of residential mortgage credit.
2.3 History of LIC Housing Finance
Launched in 1989 as per Companies Act, 1956 LIC housing finance has grown to be
one of the largest lender in home-finance market
Promoted by LIC that helped in initial business functions. Finally after being
promoted as a company offering housing finance by LIC it went public in 1994.
LIC Housing Finance news state that its authorized capital stands at Rs.150 crores or
Rs.150 million.
Its shares are trade only in dematerialized form at both NSE and BSE.
The company’s GDR was launched in 2004 and is listed on the Luxembourg Stock
Exchange.
Presently, according to Lic housing finance news there are over 181 marketing units;
along with a wide network of 6 regional offices and over 13 back-offices, 773 direct
sales agents (DSA), 3400 home loan agents (HLAs) and 615 customer relationship
associates.
The Company has set up a Representative Office in Dubai and Kuwait to cater to the
Non–Resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar
and Saudi Arabia. Today the Company has a proud group of over 10,00,000 prudent
house owners who have enjoyed the Company's financial assistance.
1989 - The Company was incorporated on 19th June as a public limited company. It
was promoted by LIC of India. The Company provide housing loans to individuals,
builders, development authorities, employers organisation etc.
- The Company has started various schemes: Griha Prakash a general scheme, Griha
Tara under which it accepts only Bima Sandesh Plan as Life Insurance Corporation,
Griha Shobha for NRIs and Griha Lakshmi for people to have a second house.
1994 - 30,057,900 No. of equity shares were issued at a premium of Rs 50/- per share
through public issue on 15th November 1994. The allotment was as follows;
1,082,000 shares to LIC on firm allotment basis and the balance 189,75,900 shares to
public (all were taken up).
1996- The Company has decided to carry out fund based and one-fund based
activities, viz., debt securitisation, lease and hire purchase, renting of properties and
giving guarantee to co-operate bodies.
2000- Crisil has assigned a AAA rating to the issue of mortgage backed pass
through certificate backed by mortgages orginated by the company.
2001 - The Company has launched its new scheme, Griha Vikas.
2002 - LIC Housing Finance Ltd has informed BSE that the Company has forfeited
1,25,300 equity shares due to non payment of allotment/call monies.
-LIC Housing Finance has approved for the take over of Individual Housing loan
portfolio of GLFL Housing Finance.
-Around 25 investors subscribed to the issue of confidentially placed debentures for
a total amount of Rs.392 cr of LIC Housing Finance Ltd.
-LIC Housing Finance Ltd has decreased its interest rates on housing loans by 25-50
basis points.
-Financial Institutions have increased their stake from 0.01% to 1.96% and Mutual
Fund companies have increased their stake from 0.35% to 1.06% in LIC Housing
Finance.
-LIC Housing Finance Ltd has decreased the floating rate of interest under
individual loan scheme to 9.5% from 11%.
-LIC Housing Financee signed a deed of assignment to take over individual housing
loan portfolio of Citibank N A.
-UTI and IFCI has been removed from the list of promoters of LIC Housing
Finance.
2003 - LIC Housing Finance has unveiled a new project for elderly people called
'LIC HFL Care Homes' .
-LIC Housing Finance Ltd has sanctioned 84,126 loans worth Rs.3265.78cr and
disbursed 76,663 loans worth Rs.2941.24cr under its Individual Loan Scheme.
-LICHFL has mobilised Rs.280cr for 15 years at 7% rate of interest through private
placement.
-Lic Housing Finance Ltd has informed that the shares of the company have been
delisted from The Stock Exchange - Ahmedabad w.e.f December 08, 2003.
2004 -Merill Lynch Capitat acquires LIC housing stake of 0.39%
-Templeton Asset Management buys 37,52,362 equity shares, representing 5.01% of
LIC Housing's total paid-up capital of Rs 74.9 crore
-LIC Housing Finance Ltd has informed that the shares of the Company has been
voluntarily delisted from the Delhi Stock Exchange (DSE) W.E.F. January 23, 2004.
-LIC Housing Finance shares delisted from Madras Stock Exchange
-Mr D Krishnan appointed as Chief Executive Officer
- LIC Housing Finance Ltd's (LICHFL) one-crore global depository receipts (GDR)
issue opened on August 27.
- Lists its maiden global offerings worth .85 million at the Luxembourg Stock
Exchange successfully.
-Introduces new product that starts as a fixed rate loan but contains an option to
convert it to a Floating rate loan at the end of five years, at the then prevailing rate.
2005 -Delist from The Calcutta Stock Exchange Association Ltd (CSE) with effect
from December 09, 2004.
-LIC Housing Finance launches loan product that eliminates the requirement of
charge on house financed.
-Goldman Sachs acquires share in LICHFL
2007- LIC Housing Finance to launch FD scheme -LIC Housing Finance to enter
into reverse mortgage product.
2008 -LIC Housing Finance Ltd has informed that the Board has appointed the
following persons as Directors on the Board of the Company on May 20, 2008
-Name of the Director: Shri. D K Mehrotra For the Position of : Managing Director
Change effective from: May 20, 2008.
- LIC Housing Finance Ltd has informed that the Board of Directors of the Company
has appointed following person as Director on the Board of the Company on July 01,
2008.
- Name of the Director: Shri A S Narayanamoorthy
- For the position of: Additional Director
- Change effective from: July 02, 2008
-LIC Housing Finance launches Reverse Mortgage for senior citizens
2009 - LIC Housing Finance cut interest rates for new loans by 0.5% where for
customers opting for floating rate loans between Rs 30 lakh and Rs 75 lakh, the new
rates will be 8.755 against 9.25%.
2010 - The Company is applying for a license with the Pension Fund Regulatory
Development Authority (PFRDA) to act as Aggregator under the, National pension
System (NPS) – Lite.
- LIC Housing Finance Ltd has decided to unveil a private equity fund focussed on
real estate development projects.
- LIC Housing Finance on October 27 has approved a stock split in the ratio of 1:5 to
boost the liquidity of its scrip.
-Company has splits its Face value of Shares from Rs 10 to Rs 2
2011 - Dinesh Kumar Mehrotra, Managing Director for international operations in
LIC, was appointed interim Chairman.
2012 - LIC Housing Finance has said that it has begun the process of raising funds
through Qualified Institutional Placements (QIPs).
2014 - 19-06-2014 25th year completed
- LIC housing finance Last 25 year Rs. 139000 Crore in Home Loan disbursement
- They are 11000 Representatives helping Indians own homes over the last 25 years
-They are more than 16.8 lakhs Families own homes with our support over the last 25
year.
2.4 Company Profile
LIC Housing Finance Ltd is one of the largest Housing Finance Company in India. The
company is engaged in the business of providing loans for purchase construction, repairs and
renovation of houses/flats to individuals, corporate bodies, builders and co-operative housing
societies and has its operations within India. They provide loans for homes, construction
activities, its corporate housing schemes. Around 89% of the loan portfolio derived from the
retail segment and the rest from large corporate clients. The main objective of the company is
providing long term finance to individuals for purchase / construction / repair and renovation
of new / existing (Resale) flats / houses. The company also provides finance on existing
property for business / personal needs and gives loans to professionals for purchase /
construction of Clinics / Nursing Homes / Diagnostic Centres / Office Space and also for
purchase of equipments. The company through their subsidiaries LICHFL Care Homes
Limited, is engaged in the business of setting up, running and maintaining assisted living
community centre/care homes for senior citizens; LICHFL Financial Services Ltd, is engaged
in the business of marketing various financial products and services, and LICHFL Asset
Management Company Ltd is engaged in business of managing, advising, administering
mutual funds, unit trusts, investment trusts and to act as financial and investment advisors and
render financial advisory services. The company possesses one of the industry's most
extensive marketing network in India. The company is having their registered and corporate
office at Mumbai. They have 7 regional offices, 13 back offices and 190 marketing units
across India. In addition the company has appointed over 1241 direct sales agents (DSAs),
6535 home loan agents (HLAs) and 782 customer relationship associates (CRAs) to extend
their marketing reach. They have set up a representative office in Dubai and Kuwait to cater
to the non-resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar
and Saudi Arabia. LIC Housing Finance Ltd was incorporated on June 19 1989. The
company was promoted by LIC of India and went public in the year 1994. The company is
recognized by National Housing Bank and listed on the National Stock Exchange (NSE) &
Bombay Stock Exchange Limited (BSE) and its shares are traded only in Demat format. The
GDR's are listed on the Luxembourg Stock Exchange. In the period of 2001, the company
launched their new scheme called Griha Vikas. In the year 2002, the company signed a deed
of assignment to take over individual housing loan portfolio of Citibank. In the year 2003,
they unveiled a new project for elderly people called LICHFL Care Homes. The company
launched their maiden GDR issue in the year 2004. Also, they introduced flexi-fixed scheme
offering fixed rate of interest for first five years and variable thereafter. In October 2005, the
company started offering of 'New Griha Laxmi' for woman special housing loans against the
security of certain approved financial assets like Bank Fixed Deposits, National Savings
Certificates and Life Insurance Policies. In the year 2006, the company introduced new Griha
Jestha for senior citizens for buying unit of LICHFL Care Homes Ltd. In May 2007, the
company launched maiden Fixed Deposit Scheme. In October 31, 2007, the company
incorporated LICHFL Financial Services Ltd for undertaking non fund based activities like
marketing of housing loans, insurance products, credit card, mutual fund, personal loan etc.
In February 2008, they launched reverse mortgage for senior citizens above 60 years of age.
In February 14, 2008, the company incorporated LICHFL Asset Management Company
Private Limited for undertaking the business of managing, advising, administering venture
funds, unit trust, investment trust in India as well as abroad. In March 5, 2008, the company
incorporated LICHFL Trustee Company Private Limited for undertaking the business of
trustees of venture capital trust, funds - in India and offshore fund. In March 12, 2008, they
launched a new venture capital fund for realty projects. During the year 2009-10, the
company was awarded the 'Second Best Home Loan Provider' award by Outlook Profit.
During the year 2010-11, the company launched a unique interest rate scheme namely; 'MINI
5' to cater to housing finance needs of the priority sector population residing in Tier II and
Tier III cities. Now LIC Housing Lunch New Scheme “Griha Prakash”
2.5 Board of Directors of the Company
As per various LIC Housing Finance news, there are many products that are offered
by the company ever since it was launched way back in the year 1989. These include
both deposits as well as advance schemes that work as tools of housing finance by
LIC:
Processing fees paid by customer for the processing of the home loan proposal.
Housing Loans: This is the basic home loan for the purchase of a new home.
Improvement Housing Loans: These loans are given for implementing repair works and
renovations in a home that has already been purchased.
Construction Loan: This loan is available for the construction of a new home.
Extension Loan: This is given for expanding or extending an existing home. For eg: addition
of an extra room etc.
Home Conversion Loan: This is available for those who have financed the present home
with a home loan and wish to purchase and move to another home for which some extra
funds are required. Through home conversion loan, the existing loan is transferred to the new
home including the extra amount required, eliminating the need of pre-payment of the
previous loan.
Land Purchase Loans: This loan is available for purchase of land for either construction or
investment purposes.
Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and
purchase another one. The bridge loans help finance the new home, until a buyer is found for
the home.
2.14 Processing Fees & Stamp Duty
Special Features
Get Sanction Letter Before You Finalised Your Property
Tenor up to 30 Years*
Higher Loan Amount Eligibility
Monthly Reducing Balance
Easy & Simple Documentation
No Required - Guarantor & Insurance Product
Maximum Funding 85 % (up to 20 lac) & 80 % (above 20 lac)
Features
Home Loan
Loan against Property
Balance Transfer + Top Up
Both Fixed & Floating Rates Available
Best Housing Finance Company in Country Awarded by CNBC TV18
Housing Finance Expertise of more than 20 years.
Fees On Prepayment
Nil if paid from own sources else 2.00% on the Amount of loan prepaid + Service
Tax applicable
2.16 Home Loan Procedure
With the increasing competition in the market for offering Home Loans, the otherwise
tedious process of availing loans has gone a tremendous change in the recent years. However,
there is still some process involved in the procurement of Home loan. It is advisable for
borrower to first look at the different stages required for obtaining a Home Loan.
Here is step by step procedure of procuring home loan.
The first step involved in applying for home loan is the procurement of application form
from the HFC of applicant’s choice. The Performa of application every HFC (Housing
Finance Companies) is different from the other but about 80% information required to be
furnished is the same. Along with the application form necessary documents like address
proof, age proof, proof of income, bank balance etc. are also to be attached with the
application form before it is submitted to the HFC. Along with all these documents HFCs
also ask for processing fee of the home loan that varies 0.25% to 0.50% of the total loan
amount.
After successfully filling the application form and submitting it to the authority the next
step is face to face with bank or HFC where you have applied for the home loan. The bank
first evaluates the papers submitted and summons the applicant for the personal discussion
regarding the home loan applied for.
The next step is the field investigation done by the HFC or banks. They send
representatives to the existing residence of the applicants or their offices for the validation of
the documents submitted. This is the essential part for the banks to establish the trust with the
applicants.
This is the make or break stage of the process. The bank or HFC will establishes
repayment capacity based on applicant’s income, age, qualifications, experience, employer,
nature of business etc. to access credential. The bank can refuse loan application if any
discrepancy is found at this stage. But if everything goes according to the conditions
negotiated by the parties then the bank or HFC sanction the loan that may be unconditional or
with some conditions levied.
After the sanction of the Home Loan, the applicant gets offer letter from the bank or HFC
with the following details. Loan amount, Rate of Interest, fixed or variable ROI, Tenure of
the loan, Mode of repayment General terms and conditions of the loan, Special conditions
etc. If the terms and conditions are agreed the applicant has to sign the duplicate copy of the
offer letter and that is to be submitted to the Bank or HEC.
Step 6: Submission of legal documents & legal check
The bank or the HFC now asks for the legal documents of the property involved for
applying home loan. All the legal documents of the property involved have to be submitted.
The bank does all the legal checks on the property. The documents remain with the bank until
the repayment of the Home loan.
The Banks or HFC then go about the technical valuation of the property. The experts of the
bank visit the site to be purchased and value it as per the existing rules and regulations. The
valuation of the property is the most important aspect that the bank considers before
financing any property.
After the legal and technical valuation of the property the draft documents has to be
cleared by the lawyer and stamping and registration of the documents is needed.
Now it is time of signing the final agreement of the home loan. After the signing of the
agreement a bunch of Post-dated cheques are to be submitted as agreed on the agreement.
It is time for the final Disbursement of the Home Loan. After the bank or HFC
It is time for the final Disbursement of the Home Loan. After the bank or HFC ensures
financing the property is involves no risk they pay the final amount that is agreed upon. The
mode of payment varies from full to part payment. In the case of under construction property
the mode is part payment and in the case of ready possession properties disbarment is full and
final.
2.17 E.M.I Chart (for 1 lac)
OUTLINE OF TASK
Outline of Task
1) Risk of default should be reduced by funding the right customer, by using various
2) Exiting Loan (If already & any loan taken Loan) Track Record needed to LIC housing
4) Most of the Customer prefers LIC Housing Finance Ltd because of its service.
Chapter No 4
Data collection is important step in any project and success of any project will be
largely depend upon now much accurate you will be able to collect and how much time,
money and effort will be required to collect that necessary data, this is also important step.
Data collection plays an important role in research work. Without proper data
available for analysis you cannot do the research work accurately. There are two types of data
collection methods available.
Redman and Mory define research as a “systemized effort to gain new knowledge.”
Some people consider as movement a movement from the known to the unknown it is
actually a voyage of discovery
1) Data Sources:-
In the Preparation of this project it is necessity to collect the Primary data and
Secondary data
2) Primary data: -
The information about the Company is gathered from the discussion with the
employees/staff. Basically I was use primary data for that project
3) Secondary data:-
4) Sample size:-
Five cases of Home Loan Proposal are to be studied for understanding of the appraisal of
home loan. Data collected through survey of procedure, service, etc. provided by LIC
Housing Finance Ltd by filling questionnaire of fifty & above LIC Housing Ltd Customer
The methodology of this study has been adopted on the following basis:
1. Sanction stage.
It is a stage where the customer get sanction or approval that he is eligible to take
a loan of specific amount calculated on the basis of his income from LIC Housing
Finance Ltd.
2. Disbursement stage.
It is a stage where the cheque of sanctioned amount is handover to the customer or
concerned person.
.
B. Completion of documents:-
Once the documents are collected by the sales officer he hand it over to the back
office executive for compilation the executive complete the documents and process.
C. Legal Appraisal:-
The legal appraisal of a case is an important step & it done by lawyer specially
appointed by LIC Housing Finance Ltd. The lawyer verify the documents to check if the
title of the property is free & marketable from all obligation, other legal aspect is free
from any fraud. once the documents have been verified he submit a legal report to LIC
Housing Finance Ltd. The lawyer report is very essential without his approval no case is
clear. In case of negative remark mentioned by the lawyer the case is being rejected.
D. Technical Appraisal:-
The technical appraisal is a task in which an engineer specially appointed by LIC
Housing Finance Ltd he visit the site and check the property and prepare a report and
submit it to the bank. On the basis of the report the BCM takes his disbursement decision.
1. If the property is in accordance with the plans rules and regulations approved
by NMC.
2. If there are any legal and unauthorized construction on the site.
3. If the owner of the property is the same as mentioned on the legal Documents.
4. The extract or stage of constructions.
5. The raw material etc. available on the site.
6. He checks to see the cost is being incurred on the property is equivalent to the
Estimate shown by the customer.
7. He also Provide an estimated date of compilation of the property.
8. Checking the age and conciliation of the property in case of resale Property.
E. Final cheque by the BCM:-
The BCM makes a final check of the documents before taking his decision. If the
case is clear then BCM send s the file to operational manager.
F. Cheque disbursement:-
This is final step in the disbursement stage. The operation manager prepare the
cheque along with the letter which is handed over to the sales officer who then five it to
the customer. Disbursement of cheque is done in accordance with the stage of
construction as reported by technical advisor.
1. Copy of Passport , Visa , Service Contract, Salary Slip ( all duly attested by Indian
embassy | Notary | HFL Officials | Bank )
2. GPA ( General Power of Attorney ~ in our format ( all duly attested by Indian
embassy | Notary | HFL Officials | Bank )
3. Bank Statement for past one year of recent employment
4. NRI Bank Statement for 6 months
5. See list of salaried Document
# Above mentioned income document are required for the Co- applicant also if
His / Her income is considered
4.4 List of Document for Disbursement
4.4.1 Post sanction/Legal documents.
Post sanction is legal documents on the basis of which a cheque is disbursed to the
customer. The only security that LIC HFL has against a loan in this legal documents & no
deviation is usually allowed in legal document. These documents are sending to the lawyer
who verifies before being accepted by LIC HFL. These are as follows:
1) Direct From Builder Case:
Agreement of Sale
Sub Registrar Receipt
No objection certificate from builder
Own contribution receipt from builder
2) Direct from Registered Co-op Housing Society Ltd.:
Share Certificate
Allotment Letter
No Objection Certificate from Society
Own contribution receipt from Society
Copy of Society Bye Laws
Society Registration Certificate
Registered Agreement if not Original member
3) Own Construction Case:
Original Sale Deed with Registration Receipt.
7/12 Extract
6 D Extract
NA Order Copy
ULC Order Copy
Latest Title Clearance Certificate
Original Architect Estimate
Commencement Certificate
Prior Sale Deed with Original Reg. Receipt.
4) Resale Case:
Sale Deed/Agreement with Registration Receipt
Previous Customers Sale Deed/Agreement with Registration Receipt
Own Contribution Receipt
NOC from Builder/Society
Title Certificate
Share Certificate & Allotment Letter (if applicable)
NA Order & NA Tax Receipt (Xerox)
ULC (Xerox)
7/12 & 6-D Extract (Xerox)
Commencement Certificate & Completion Certificate (Xerox)
Society Registration Certificate & Bye-Laws (Xerox)
Title Certificate (Xerox)
Building Plan (Xerox)
5) MASTER FILE/LEGAL FILE:
Sale Deed/lease Deed/Gift Deed or Development Agreement/Power of
Attorney/Partnership Deed
NA order & ULC
Commencement Certificate & Completion
Building plan
7/12 Extract & 6-D Extract
Title Certificate
Society Registration Certificate
Bye Laws Copy.
3.4.2 Analysis of Legal Documents
All owners of the property should be applicants
Check for cost of property and OCRs paid
Signature of the owners should match with the application form
Witness should sign the agreement
Priority and Non Priority documents to be collected as per legal report
NOC From builder/ society / development authority as the case may be
Own contribution receipts
Agreements
Current agreement must be registered
Stamp Duty receipt required
Registration receipt required
Stamp duty receipt and registration receipt amount to be added to cost of property and
calculated as OCRs too.
NOC
NOC should be on the letterhead of the Society/ Builder / Development Authority
Should have the stamp of the society / Builder / Development Authority
Address should match as per the agreement, Flat No., Wing No. etc..
Should be as per the procedures and drafts for different transaction types.
Must be dated
Own Contribution Receipts
Must have a revenue stamp
Cash payments cannot be more than Rs.20000/-
Should give details of the property like flat No. etc
In case of refinance > Rs.1 lac
Builder case – Receipts from builder & debits in bank account
Resale – Agreement for sale / Sale deed to be registered before refinance
Property Norms:
Property should not be in negative area
Property should be within geographic limits
Property should be self contained
Maximum age of property less than 35 years at loan application
Loan tenor not to exceed residual age of the property
Minimum Built up area > 400 sq. ft
In case of row house of ground floor only
4.5 Personal Discussion
(Salaried Persons)
Name of the Applicant
1. a) Name of the Employer Organization
b) Designation
c) No. of year in service with present employer
2. a) Educational Qualification
b) Name of University / Institute
c) Year of Passing Out
3. Past Experience – No. of Jobs changed
Previous Employer 1
a) Name of Organization
b) Designation
c) No. of year in Service
4. Previous Employer 2
a) Name of Organization
b) Designation
c) No. of year in Service
5. Family Status
a) Whether Spouse is Co- applicant?
b) Whether Spouse is working?
Salaried / Self – employed
6. Details regarding existing Place of Residence
a) Current Residence – Owned/ Rented/ Company
Leased/ Parental
b) No. of years staying at Current Residence
c) In case of Company Leased Accommodation
whether planning to shift to new Premises?
If yes, Expected Sales Proceeds/ Rent
d) In case of Second House, plans for existing
property – whether existing Property will be Sold /
Rented?
If yes, Expected Sales Proceeds /Rent
7. Details of Saving / Investment
a) Immovable Property / Bank FD / Savings Balance
/ NSC / KVP / Mutual Fund / Shares & Stocks /
Bonds, PPF, Insurance Policies
8. Complete Details of existing Loans / Liabilities
provided in Application Form?
Whether Application intends to close any of them?
9. As per Applicant’s view, how much EMI can he pay
to LICHFL
10. a) Whether Property identified?
b) Approximate Property Value
APPLICANT EARNING
Particulars Amount ( P.M.)
Basic Pay
DA
HRA
Transport Allowance
SPL Allowance
Performance Allowance
Medical Allowance
LTA
Education Allowance
Variable ( Annual )
LTA
PLI/ Bonus/ Incentive
Medical
Total Variable
TOTAL EARNING ( A )
DEDUCTIONS
Particulars Amount
Provident Fund
Professional Tax
Income Tax
Transport
Canteen
Loan 1
Loan 2
Loan 3
Loan 4
TOTAL DEDUCTION (
B)
NET INCOME (A-B)
Applicants Age ( D )
Loan Term ( E )
Age + Term ( D+E )
Table 1:
Age Group Percentage
25-35 45
35-50 35
50-60 15
Above 60 5
Total 100
Graph 1:
Age Group
5
15
45
25-35
35-50
50-60
35 Above 60
Analysis:
It was found that about 45% of people were between age group of 25-35, 35% were
between 35-50, 15% were between 50-60 and 5% were above 60.
Interpretation:
Thus we conclude that the average percentages of people in the above age groups showed
interest in the survey of LIC HFL
Table 2:
Graph 2:
Annual Income
100%
0%
Below 2 lacs Percentage Percentage
2-5 lacs
5-10 lacs
Above 10
lacs
Analysis:
It was found that 2% of candidates are below 2 lacs. 30% are between 2-5 lakh. 65 % of
are between 5-10 lakh. While only 3% are above 10 lakh.
Interpretation:
Therefore it can be conducted that maximum income group was found between 5-10 lacs.
Table 3:
Graph 3:
Own property
33%
Yes
No
Analysis:
67% of candidates possess their own property and 33% of candidates had no property.
Interpretation:
This shows that out of 100 respondents 67% had their own property while 33% had no
property. 67% were not willing to invest or buy any property.
Table 4:
If yes, the type of property-
Graph 4:
Type of Property
4
18
Residential
Commercial
78 Others
Analysis:
It was found that 78% of the candidates preferred residential property. 18% wanted
Commercial while only 4% of the respondents wanted other than residential and
commercial property.
Interpretation:
Thus, it can be concluded that 78% of the respondents wants to invest in the property
for living purpose. While 18% wants to derive their business with the help of that property.
Table 5:
Budget Percentage
10-30 69
31-50 21
Above 50 10
Total 100
Graph 5:
Budget
10
21
0-30
31-50
69
Above 50
Analysis:
69% have budget more than 50 lacs. 21% have between 31-50 and 10% have between 0-30
lakhs
Interpretation:
Thus, it can be said that major respondents do not want to invest much to buy a property. As
majority of the respondents are of middle class society. While there are only10% who belong
to high class society can invest above 50 lakhs.
Table 6:
Graph 6:
Percentage
10
11
Yes
No
79 Can’t Say
Analysis:
79% of respondents preferred home loan while 11% did not prefer loans. There were 10% of
respondents who could not decide whether to take or not.
Interpretation:
Major respondents wanted to buy a property over loan basis as mostly respondents are service
men. Those who did not prefer loan were businessmen.
Table 7:
Graph 7:
SBI
3
6 4
HDFC
32
9
LICHFL
8 ICICI
AXIS
10
16 PNBHFL
12
CANARA
ALLAHABAD Bank
DHFL
Analysis:
32% respondents preferred SBI. 16% preferred HDFC. 12% preferred LICHFL. 10%
preferred
ICICI. 8% preferred Axis. 9% preferred PNBHFL. 3% preferred Canara Bank. 6% preferred
Allahabad Bank. 4% preferred DHFL.
Interpretation:
Maximum proportion of respondents preferred to opt for SBI. This shows that most of them
have faith in SBI. Next preference is to HDFC and then LICHFL.
Chapter No 5
ACTIVITY CHART
5.1 Activity Chart
Work Plan
S. No. Date Activities
1 15/05/2014 Start Work ( Discussion about the topics for study )
2 22/05/2014 Initial Study (Selection of the topic of Initial Study)
3 29/05/2014 Secondary Data Collection
4 12/06/2014 Primary Data Collection
5 03/07/2014 Data Analysis/ Interpretation
6 16/07/2014 Project completion ( Discussion with the project guide & Reporting here)
7 16/07/2014 Summer Internship Programs End of Stage
Chapter No 6
KEY LEARNING
6.1 KEY LEARNING
4) How to the determine the Processing fees applicable for various customer
1) Visits to the various Residential Construction sites & attract new customer to our company
3) In PCMC area I have visited to more than 50 customers by visiting their residence
4) In two months I had recommended 11 customer to LIC housing family from my own
reference ( 11 customer taking a loan) & after two month of ( SIP ) in addition to 5 customer
have availed the loan from my own reference.
5) Daily calling for new customer & asking a customer requirement for loan & follow up of
customer.
Chapter No 8
12. Pl Specify the location in which you are interested for buying property?
_______________________
Name:
Address:
Contact No:
CASE NO.1
1) Applicant Name : Mr. Nilesh Palhade
4)Profile :
Applicant : Salaried
5) Monthly salary:
Bank Salary
Qualified Profile
No Existing obligation
7) Findings:
1) Field Investigation report is Negative due to House found locked at the time of
Visit.
2) Exiting Loan For Education Loan Track Record One Cheque To Bounce
8) Suggestions:
5) Profile :
Applicant : Business
6) Monthly salary:
8) Findings:
Applicant Bank Statement showing monthly deduction of EMI of Axis Bank and the
said was reflected in CIBIL Verification report.
9) Suggestions:
As per discussion with Applicant his Loan to be close after Sanction. There Loan
Closing NOC Report attach in Disbursement file.
CASE NO.3
5) Profile:
Co-Applicant : Salaried
6) Monthly Income:
Good Salary
Very Very Good Bank Balance Maintaining (above 25000 for Minimum)
8) Findings:
1) Co-Applicant Bank Statement showing monthly deduction of Rs.11458 & 3859 as EMI
of Housing Loan & Personal Loan
9) Suggestions:
1) As per discussion with Co-Applicant he is not going to nil that Housing loan hence the
said EMI should be considered as obligation in loan eligibility calculation & Demand on
Track Record for Both Loan
CASE NO.4
4) Profile :
Applicant : Salaried
6) Monthly Income:
PF Balance is 7 Lakhs
8) Findings:
1) Applicant Bank Statement showing monthly deduction of EMI of LIC Housing Loan
for his Previous loan and the said was reflected in CIBIL Verification report.
9) Suggestions:
1) Applicant is not need for close his Home Loan for Existing because his that loan
additional loan taken
CASE NO.5
5) Profile :
Applicant : Salaried
6) Monthly Income:
Salary
No any Obligation
Qualified Profile
8) Findings:
9) Suggestions:
Loan Amount possible for only 9 years remaining in the service hence maximum loan
tenor should be restricted to 9 years.
8.2 Bibliography
Books
Sites
www.lichousing.com
www.moneycontrol.com
www.google.com
www.rupeetimes.com
www.economictimes.indiatimes.com
www.profit.ndtv.com