CHAPTER 1

INTRODUCTION
INTRODUCTION TO HOME LOANS

Home is a dream of a person that shows the quantity of efforts, sacrifices

luxuries and above all gathering funds little by little to afford one’s dream.
Home is one of the things that everyone one wants to own. Home is a
shelter to person where he rests and feel comfortable. Many banks providing
home loans whether commercial banks or financial institutions to the people who
want to have a home.
Home Loan, India have been serving the people for around three decades
and providing various housing loan according to their varied needs at attractive
& reasonable interest rates. Owing to their wide network of financing, Housing
Loans provides services at your doorstep and helps you find a home as per your
requirements.
Many banks are providing home loans at cheapest rate to attract consumers
towards them. The more customer friendly attitude of these banks, currently offer
to consumers cheapest loan over homes.
In view of acute housing shortage in the country, and keeping in mind the
social – economic role of commercial banks in the present times, the RBI advised
banks to encourage the flow of credit for housing finance.
With the RBI reducing bank rate, the home loan market rates nose-diving
by 50 basis points. The Bangalore Bank and Standard chartered bank has become
the first player in this sector to announce a housing loan for a 20 years period. No
doubt it will enhance the end cost people to plan their house over longer duration
now; it has been made easy for a person to buy that dream house which he dreamt
of long ago.
Home Improvement Loan for internal and external repairs and other structural
improvements like painting, waterproofing, plumbing and electric works, tiling
and flooring, grills and aluminum windows. Bank finances up to 85% of the cost
of renovation (100% for existing customers).
Current status is reduced home loan rates by 50 basis points for all its
existing floating rate customers.

ADVANTAGES OF HOME LOANS: -

The various benefits of home loans arising to the customers are:-

(i) Attractive interest rates: -

The various banks offer attractive interest rates to boost and help their
customers. Many banks provide loans on fixed or floating rates to facilitate
consumers as per their needs.

(ii) Help in owning a home: -

The home availed by a person with the help of banks, because they provide
technical and financial assistance to customers for owning their dream home.
(iii) No requirement of guarantor: -
The commercial banks now a day, liberalize their laws regarding home
loans. Some of banks don’t even require the guarantor to grant loan to their
consumers. They also make consumers free by reliving him to find a guarantor to
complete the proceedings of availing loan.

(iv) Door-Step Services: -

These door to step services are provided from enquiry stage to the final
disbursement takes place such services are beneficial for customers in present
busy life. Banks like ICICI bank and standard chartered bank provide door to step
services to customers to borrow loan.

(v) Loan period: -

There are many banks which provide maximum loan tenures up to 15-20
years based on the loan amount and the treatability of customers. This relieves
the customers to repay loan amount till a long period.

(vi) For accidental death insurance:-

Some banks provide free accidental death insurance with housing loan
which is also beneficial for the customers.
These benefits or advantages of home loans are responsible for making
than so popular among customer that a person who don’t have their home and
want to buy, they do it with home loan. Home loans help such persons in making
their dream home.

DISADVANTAGES OF HOME LOANS: -

The main disadvantages of home loans are high lightened as below:

(i) Delays in processing: -

Many times, there are huge delays in processing of providing home loans
because various formulations to be fulfilled in this process. Due to these delays’
customers feel mentally as well as financially weak.

(ii) Fluctuating interest rates: -

Some banks give home loans at floating rates, which fluctuate at Different
intervals due to some reasons. These changes sometimes, may lead to increase in
interest rate which will increase the cost of home loans to the customers

(iii) High Cost: -

The public sector banks charge high processing cost for home loan’s
sanctioning. They are forced to pay serious charges at various stages to fulfill the
requirements. Some consumers are not able to pay such charges so such people
could not avail the benefits of home loan schemes.
(iii) Problems in disbursement: -
There are many problems in disbursement of home loan amount. There are
some delay in disbursement of loan amount to the customers due to legal
formalities. This causes problems to the customers.
These are limitations or disadvantages of home loans. But sometimes some
banks charges high installments to repay loan amount. Such also causes problem
to customers. These limitations can be removed by providing good and promote
services to the customers.

DISBURSEMENT OF HOME LOANS :-

The every bank has its own procedure to disburse the loan amount among
customers. After choosing your right home, the next step is disbursement of home
loans. The loan amount is disbursed after identifying and selecting the property
or home that are purchased and submit the requisite legal documents. In the
disbursement of home loans a clear title and full verification to ensure that a
person has full rights on his house. The 230A clearance of seller and /or 371
clearances from the appropriate authority of income tax is also needed.

(I) Eligibility criteria:-

However, if one is a resident or non-resident individual who is planning to

buy a house in India, one can apply for a home loan. If a person has decided to
buy a property in the near future, he/she can apply for a loan before even selecting
the property. Once the maximum amount to put into the property has been
decided, the Housing Finance Institutions or Banks will let the customer know
that how much he/she is eligible for and this helps to plan out the budget.

(ii) Conditions regarding co-applicants: -

All Housing Finance Institutions lay down conditions on who can be co-
applicants. all co-owners to the property. need to be co-applicants to the loan
necessarily. These institutions do not permit minors to join in as either coowner
or as co-applicants because a minor is not eligible to enter into a contact as per
law. They do not permit even friends or relatives who are not blood relatives to
take a property jointly.However, Income of co-applicants can be clubbed
together to get higher loan eligibility. Given below is a Table that throw light
on acceptable relationship of a co-applicant for clubbing of income.
Income Clubbing of Co-applicants:- It is as follows:-
Combination Income Clubbing: -
 Husband-Wife: - Income of husband-wife can be clubbed.

 Parent - son: - It can be clubbed if only son is there but not if any male sibling
exists.

 Brother-Brother: - If they are currently staying together and intend to stay

together in the new property, then only, their income-can be clubbed for above
purposes.

 Brother-Sister: - No clubbing-is possible.

 Sister-Sister : - No clubbing is possible.

 Parent-Minor- Child: - No clubbing is possible in this case also.

(iii) General Terms and Conditions: - The following are the terms and
conditions applicable to the basic home loan product only. These are likely to
change on the basis of the variations of the home loan product. Typically, in
general home loans, the following conditions are applicable :-

1) The loan to value ratio (LTV) cannot exceed a particular percentage. This
differs from product to product and from one Housing Finance Institutional
Bank (HFI/B) to another. The components of the value of the Property
calculated here are covered under cost of property.

2) The maximum tenure of the bank is nominally fixed by HFI/Bs. However,

HFls/Bs do provide for different tenures with different terms and conditions.

3) The installment that one pay is normally restricted to about-50-per cent of the
monthly-gross income of the candidate.

4) The total monthly outflow towards all the loans that have been availed of,
including the current loan is normally restricted to 50% of the gross monthly
income.

5) One will be eligible for a loan amount which is the lowest as per one's
eligibility. This is calculated as per the LTV norms, the HR, norms and the FOIR
norms as mentioned above.

6) Most HFls/Bs consider the profile before they judge the repayment capacity.
The judgement is based on age, qualifications, number of dependents,
employment details, employer credentials, work experience, previous track
record of repayment of any loans that have been availed of, occupation, the
industry to which the candidate's business relates to, if he/she is self-employed,
then the turnover in the last 3-4 years etc.

7) Some HFIs/Bs insists on guarantees from other individuals for the repayment
of the loan. In such cases, the customers has to arrange for the personal guarantee
before the disbursement of the loan takes place.

8) The property should be technically clear before the HFIs/Bs disburses the
loans amount. Most of institutions and banks have a teams of technical experts
who visit the site to get a technical report before the disbursement of loan. This
is also beneficial to the customer as they check for the technical quality and
compliance with local laws.

9) The property should be legally clear before one can avail of a disbursement of
the loan amount. Housing-Finance Institutions /Banks (HFIs/Bs) take legal
clearance from their lawyers before the disbursement of amount. This proves to
be beneficial to the customers as a legal expert checks his/her documentation to
ensure that he/she get a proper title to the property.

10) The disbursement of the loan is as per the progress of construction of the
property unless it is a ready property in which case the disbursement will be by
one single cheque. PEMI or simple interest on the loan amount disbursed to the
customer in case of a part disbursement will be payable by the customer on the
disbursement.

11) The disbursement in most cases will be favoring the builder or the seller or
the society or the development authority as the case may be. The disbursement
will come in the customer's favour under special circumstances only.

12) The repayment of loan can be made either through deduction against salary,
post-dated cheques, standing instructions or Auto debit instructions to bank.

13) The principle is amortized either on annual reducing or monthly reducing

basis as the case may be.

The above terms and conditions are generally true for most Housing finance
Institutions/Banks with respect to the general Home Loans. However, the specific
terms and conditions vary with respect to special Housing Finance Institutions or
Banks.
(iv) Charges applicable to home loans :-

The different kinds of charges applicable to home loans are discussed below:

a) Processing fees :-

First of all, comes the process fee. This is a charge that is levied by most
HFls/Bs. This has to be paid at the time of submission of the application form.
It's normally charged as a percentage of the loan amount sanctioned. Some HFls
also charge a flat fee based on the loan amount instead of a percentage. When a
lower amount is sanctioned the excess fees paid at the time of submission of the
application is adjusted with the charges, which one make to the HFI/B
subsequently. Most HFls/Bs refund the processing fee if the loan application is
rejected.

b) Administrative fees :-

This charge is again, normally, a percentage of the loan amount sanctioned.

It is collected by the HFI/B for the maintenance of customer's records, issuing
interest certificates, legal charges, technical charges, etc. though the tenure of the
loan. It is payable by the customer when he/she accepts the offer letter given by
the HFI/B. This payment has to be made before the availment of the
disbursement. The mode of collection of these fees varies from one HFI/B to
another.

c) Rate of interest :-

This is the rate of interest applicable on the loan amount through the tenure
of the loan. It is charged on the principal monthly reducing method. Most HFIs/Bs
give an option to select either a fixed rate of interest or a variable rate of interest.

d) Legal Charges:-

Some HFIs/Bs mainly Public Sector Banks levy legal charges that they incur
on getting the property documents vetted by their panel of lawyers.

e) Technical Charges:-

These charges are also levied by certain Housing Finance

Institutions/Banks (HFIs/Bs) to meet their expenses on the technical site visits to
the customer's property. This ensures quality of construction and construction
within the norms as stipulated by the respective approval authority.

f) Stamp duty and registration charges:-

HFIs that go in for a registered mortgage pass these charges on to the

customer. These are rather heavy in certain states depending on the laws laid
down by the state where one buy a property.

g) Personal Guarantee from Charges :-

Since the personal guarantee provided by the customer need to be stamped,

these charges are also recovered from the customer. They are charged to him by
HFIs who demand for Guarantees.

h) Cheque Bounce Charges :-

In case the cheques through which one make a payment to HFls get
dishonored, some minimum charges are levied by the HFI. The same are
recovered from the customer.

(i) Delayed payment charges :-

HFls/Bs charge delayed payment charges from the customer if he/she delays
the payment of installments beyond the due date.

(j) Additional charges :-

These are levied as a percentage on the delayed payment charges by most

HFls. They are levied if one fail to pay the dues within the stipulated time after a
delay has taken place.

(k) Incidental charge :-

This is payable in case the HFI/B sends a representative from their

organization to collect their outstanding dues. It is normally charged at a flat rate
per visit. These charges are levied by most HFls/Bs.

l) Prepayment Charges :-
 This is a penalty charged by HFls/Bs from when one makes either a part
prepayment or a full repayment of the loan. This charge is levied only on lump
sum payments and not on the EMls that one pays. This charge is levied on the
amount prepaid by one and not on the entire outstanding principal. These charges
are gradually being discount. So, these are the charges levied by most Housing
Finance Institutions and Banks while granting home loan to the customers. Now,
the decision on the repayment capacity shall be talked about as follows.

SCHEMES OF HOME LOANS:

1) Home loans for construction of new house / flat, purchase of old house/
flat, etc:
Initially, lenders approved a home loan for family/own residence only. After
gaining experience and more importantly to be competitive, lenders now
approve loans even when the applicant has more than one house or
flat/apartment. Today there is no general restriction on the number of houses
owned by an individual. The only stipulation is that the home loan funds
should not be used for commercial purposes.

2) Home extension loan:

These loans are given for expanding or extending an existing home. These are
some of the instances for which you could take an Extension Loan.

• To construct an additional room or floor by getting additional FSI granted.

• Using grills or sliding windows to enclose the balcony.
• Construction of a garden or garage in the building vicinity.
3) Home improvement loan:
Home improvement loans for repairs /renovation including waterproof,
plumbing, compound wall, digging of well/tube-well, flooring/tiling,
additions like built-in cupboards /shelves, internal repairs including replacing
doors/windows, etc. A loan for purchase of household furniture including
space-saving furniture (kitchen racks, cupboards, etc) may also be sanctioned
as a home improvement loan.

4) Home loan for purchase of housing site:

Here again, initially many banks did not approve such loans. However, market
forces have now made this a universal feature of the home loan market.
However, care has been taken in structuring the schemes for avoiding
financing for purchase of land for speculative lation purposes.

5) Home equity loans:

A home equity loan (sometimes abbreviated HEL) is a type of loan in which

the borrower uses the equity in their home as collateral. These loans are
sometimes useful to help finance major home repairs, medical bills or college
education. A home equity loan creates a lien against the borrower's house, and
reduces actual home equity.
 Home loans
for
construction
of new house
/ flat

Home
Home equity
extension
loans
loan
SCHEMES
OF HOME
LOAN

Home loan
Home
for purchase
improvement
of housing
loan
site
STEPS INVOLVED IN GETTING HOME LOAN:

STEP 1:
Submit an Application form along with relevant documents:

The finance company will process customer’s application to check the loan
eligibility based on the persons income and

personal profile. Usually an up front (non –refundable fee) of about 0.5-1% of

the loan amount must be paid before processing begins.

STEP 2:
Verification of the property and supporting documents:
(Usually takes 5-7 working days after Step1)

A company representative may visit the property as well as the residence to

vary information submitted in the persons application form. Further, a
property valuation maybe carried out by the company to determine the
maximum amount they are willing to lend you. Any references submitted by
the person in the Application Form may also be contacted. The person may be
personally interviewed and any further clarifications in the documents
submitted maybe sought.

STEP 3:
Sanction of the loan:
(Usually on the 7th working days after Step 1

A sanction letter is issued which the customer will have to sign. This letter
will contain the amount and the terms of the loan. Some companies specify
the period for which the loan sanction is valid. The person will have to pay a
Commitment fee (normally 1% of the unutilized loan amount) if you do not
draw on the entire sanctioned amount before that period.

STEP 4:
Submission of the original Property documents and signing the loan
Agreement
(Usually on the 8-10th working days after Step 1)

The customer will be required to leave the title deed of the property with the
company as a security for the loan. He will be required to go to the company’s
office to execute the legal loan papers.

STEP 5:
Disbursal of the Loan Cheque
(Usually on the 10 –15 working days after Step 1)

The person can draw the loan in parts depending on the stage of construction
of the building. Until such time that the entire sanctioned amount is NOT
drawn, you will pay a simple interest on the Actual Amount drawn (without
any principal repayments). The EMI payments will commence only after the
entire Sanctioned Loan Amount is drawn.

EQUATED MONTHLY INSTALLMENTS (EMI):

The monthly repayment by the applicant is related to his cash flow. There is
an element of interest and of principal in the monthly payments. The interest
payable over the period of the loan is calculated and added to the loan amount
to arrive at the total payable amount .this amount, divide by the total number
of monthly installments is called equated monthly installment (EMI).

CHARGES IN HOME LOAN:

Acquiring a Home Loan doesn’t only involve the cost of home loan interest
rates but it also includes other charges & fee accompanying at various stages
of taking the Home loan. You must consider all these charges while comparing
the cost structure across banks. Following is the detailed fee structure incurred
by banks at different loan stages:

• Processing Charge:

It is a fee payable at the time of submitting the loan application to the bank
which is normally non-refundable. The fee ranges between 0.5 per cent and 1
per cent of the loan amount.

• Administrative Fee:

It is a fee incurred by banks at the time of loan sanction; there are few banks
who have removed this fee so you must check it with all the banks.

• Prepayment Penalties:

When the borrower pre-pays the loan before the loan tenure, banks charge a
penalty which usually varies between 1 per cent

and 2 per cent of the pre-paid amount.

• Legal Charges:

Banks also incur some charges from the customer for legal and technical
verification of the property.

• Delayed payment Charges:

When there is a delay in the payment of your EMI, banks charge a late
payment fee from the borrower which normally ranges from 2% to 3% of the
EMI.

• Cheque bounce charges:

Banks charge between Rs. 250 and Rs. 500 for every bounced cheque towards
the loan payment because of lack of funds in your account.

POINTS CONSIDERED BY BANK WHILE GRANTING HOME

LOAN:

The borrower’s eligibility of getting a home loan depend upon his/her

repayment capacity & the banks establish this repayment capacity by
considering various factors such income, spouse's income, age, number of
dependants qualifications ,
assets, liabilities, stability and continuity of occupation and savings history.

IMPORTANT POINTERS IN HOME LOAN:

• Increase your Loan eligibility

• Credit History:

Your chances of getting a home loan are increased if you have a good credit
history which is known by banks by checking the borrower’s Cibil score. Now
it is very hard to get a loan from another bank when you already have a bad
debt with one bank.

• Clubbing of income:

Your eligibility to take a home loan will augment when you club your income
with your spouse’s income, bank in this case will calculate your eligibility on
the basis of the clubbed income of both the applicants. You can club incomes
of spouse, children & parents staying with you and having regular income.

• Enhance your loan tenure:

Longer is the loan tenure, lower will be the EMIs which further increases the
repayment capacity of the borrower & in turn enhances the loan eligibility.

• Step-up Loan:

In this type of loan EMI's remain low in the beginning & increase gradually
as and when the borrower’s spending power increases. Therefore lower EMI's
in the initial years enhances the borrower’s ability to pay & further increases
the loan eligibility

• Increase the down payment:

You must know that in a home loan bank finances only 85 to 90% for the
property & the rest amount has to be funded by the borrower. You should
increase the down payment if you have more than required amount which will
mitigate your debt considerably.

TAX BENEFITS IN HOME LOAN:

Past record:

The home loan borrower enjoys Tax Benefits on both Interest paid & the
Principal re-paid. Under Section 24(d) of Income Tax, the deduction of
interest payable on the home loan is up to a maximum of Rs. 1, 50,000.

Under Section 80(c) of Income Tax, Principal amount for the repayment of
loan along with other savings & investments is eligible for tax deduction up
to a
Maximum limit of Rs. 1, 00,000.

Recent changes:

According to the new policy changes of the direct tax code bill introduced in
the parliament in the month of august 2010 only upto Rs 1.5 lakh deduction is
allowed on the interest paid on the housing loan and there is no deduction
 available on the principal amount. So if your equated monthly installment is
Rs 1.50 lakh, comprising interest and principal outgo of RS 75000 each, you
can avail deduction of only the interest.

INTRODUCTION TO THE INDUSTRY

THE HISTORY OF INDIAN HOME LOANS:-

Home loans in India have made people Buy Property in India in spite of
the skyrocketing prices. Today, we find considerable Real Estate Investment in
India, either in the field of Residential Property in India or Commercial Properties
in India. Home Loans in India are disbursed by many Banks as Loan Banking is
on of the most important function of the Financial Services in India. Property
Dealers and Real Estate Consultants in India usually recommend that we
undertake appropriate Home Loan or Mortgage Loan counseling so that we can
Buy Apartment in India at an affordable Mortgage Rate. Purchasing the home of
your dreams is not an easy task. Especially when you plan to buy a home on loan.
Home loan means that you buy a house on installments. In simpler terms when
you want to own a home and can’t afford to pay the amount in lump sum, you
can pay it in monthly installments with an interest rate.
The interest rates of home loans are expected to go down even further
according to analysts who foresee a cut down in the rates by the RBI in the wake
of the decision taken by US Federal Reserve to cut its rates by a significant
margin.
There are number of companies offer cheap home loans at a low interest rate.
You can avail loan against existing house for renovation or expansion etc. There
are many nationalized banks that offer finance for affordable housing. India
Housing has put together a comprehensive data to provide you with the cheapest
Home Loans available in the market. We have listed all the important housing
finance institutes and some of the top home finance banks providing lowest
interest rates.
In the last few years, housing loan scenario in India has changed drastically.
It has taken a front seat and people are looking forward to owning their own
houses. It is no more a dream that required lifetime saving and a difficult decision
to make. Today the new home purchase loan is much easily available and is much
cheaper than what was available earlier. Banks are now everywhere and the
schemes are implemented even in villages and smaller towns. The housing loans
are popular there too, however, the activity of building flats is little slow. It would
not be wrong to say that there has been a boom in the home loan market and with
this boom; there is also a boom in the Number of home loans mortgage brokers
in India.
 The main reason for this boom in home loan market is the change in
government policies. It is our government’s motivation that the home loan
interest rates in India have fallen considerably. Lot many banks are offering home
loans and this is available at low EMIs (Equated monthly Installments). High
EMIs are now a thing of past. Today lending rate is in the range of 7.5 to 15 %.
Again, there are different types of home loans available today. The interest
rate available is also of two different types. One is the fixed rate loan and the
other is the floating rate loan. In the fixed rate loan, whatever interest is fixed on
the start of loan is carried on for the complete period. However, in the other one,
the interest rate is not fixed and as the interest rate goes up or low the effect is
directly transferred to the person who is taking the loan. In the last few years the
floating interest rate has been a favorite among most of the people taking home
loans.
There is also a trend to opt for home construction loan. This loan is
available to those who want to design their homes according to their requirement
and taste. In other words, this loan is meant for those who themselves want to
construct their new home.
As shared earlier, taking a loan is not a difficult task. However, before
taking a loan, one must realize that the relationship with the bank will be for a
longer period usually 15 to 20 years so one must ensure faith and integrity in
bank. Apart from low rate of interest, the bank should also provide some value
added services. The other thing is to look into is the property that is to be brought.
Making sure that the builder has all sanctions and facility to build a good building
is very important.
Taking home loans these days has become simpler. With the RBI regularly
bring down interest rates; taking home loans have become extremely easy.
Housing loans which were 16.5% to 18% a few years ago fell by 11.5% to 13%.
With interest rates going down, people increasingly number apply to take these
loans. Some of the leading banks offering home loans in India, including ICICI
Bank, IDBI Bank, HDFC Bank , Bank of Baroda, SBI, Standard Chartered Bank
and Axis Bank .

PROBLEMS FACED BY CUSTOMERS IN AVAILING HOME LOANS

There are everything in the world has good or bad points. No doubt banking
industry/ company has made many efforts to enhance the customer satisfaction
but customer still faced some problems. These are high lightened as below:

1) The customer does not have proper knowledge about different home
loan products so they face problem in making a good deal.
 2) There are procedural delays, which harass the customers lot. This will
crush the curtsy of customers to avail the home loan.

3) The attitude of bank employees some times non cooperative and it

creates a hurdle in building trust and Confidence among customers about banks.

4) The banks do not take into account the paying capacity of customers. So
some customers are not able to get amount of loan needed by them.

So above discussed are the problems which faced by customers while availing
home loans.

Types of home loans: -

Housing loans offered by banks are of different types:-

 Home Purchase Loans

 Home Construction Loans
 Home Improvement Loans
 Home Extension Loans
 Home Conversion Loans
 Land Purchase Loans
 Stamp Duty Loans
 Bridge Loans
 Balance Transfer Loans
 Refinance Loans
 Loans to NRIs

Home purchase loans:-

This is the basic home loan for the purchase of a new home. If you want to
buy a flat in some society or some already built house, banks and HFCs sanction
you home purchase loans for this process.

Home construction loans:-

This loan is available for the construction of a new home on a said property.
The documents that are required in such a case are slightly different from the ones
you submit for a normal Housing Loan. If you have purchased this plot within a
period of one year before you started construction of your house, most HFCs will
include the land cost as a component, to value the total cost of the property. In
cases where the period from the date of purchase of land to the date of application
has exceeded a year, the land cost will not be included in the total cost of property
while calculating eligibility.

Home improvement loans:-

These loans are given for implementing repair works and renovations in a
home that has already been purchased, for external works like structural repairs,
waterproofing or internal work like tiling and flooring, plumbing, electrical work,
painting, etc. One can avail of such a loan facility of a home improvement loan,
after obtaining the requisite approvals from the relevant building authority. the
following are coming under the home improvement loans:
 External repairs
 Tiling and flooring
 Internal and external painting
 Plumbing and electrical work
 Waterproofing and roofing
 Grills and aluminum windows
 Waterproofing on terrace
 Construction of underground/overhead water tank
 Paving of compound wall (with stone/tile/etc.)
 Borewell.

Home extension loans:-

An extension loan is one which helps you to meet the expenses of any
alteration to the existing building like extension/ modification of an existing
home; for example addition of an extra room etc. One can avail of such a loan
facility of a home extension loan, after obtaining the requisite approvals from the
relevant municipal corporation.

Home conversion loans:-

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 a home conversion loan, the existing loan is transferred to
the new home including the extra amount required, eliminating the need for pre-
payment of the previous loan.

Land purchase loans:-

This loan is available for purchase of land for both home construction or
investment purposes.

Stamp duty loans:-

 This loan is sanctioned to pay the stamp duty amount that needs to be paid
on the purchase of property.

Bridge loans:-
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.

Balance- transfer loans:-

Balance Transfer is the transfer of the balance of an existing home loan
that you availed at a higher rate of interest (ROI) to either the same HFC or
another HFC at the current ROI a lower rate of interest.

Refinance loans:-
Refinance loans are taken in case when a loan for your house from a HFI
at a particular ROI you have taken drops over the years and you stand to lose. In
such cases you may opt to swap your loan. This could be done from either the
same HFI or another HFI at the current rates of interest, which is lower.

NRI home loans:-

This is tailored for the requirements of Non-Resident Indians who wish to
build or buy a home or property in India. The HFCs offer attractive housing
finance plans for NRI investors with suitable repayment options.
On would be entitled for home loans in the range of Rs 5 lakh to a maximum of
Rs 1 crore, based on the repayment capacity, previous credit history and the cost
of the property. The bank may provide a maximum of 85% of the cost of the
property or the cost of construction as applicable and 75% of the cost of land in
case of purchase of land. The repayment capacity is calculated taking into account
factors such as:
 Age
 Income/Salary
 Qualifications
 Dependant/(s)
 Assets/Liabilities
 Credit History
 Stability / continuity of your employment/business
 Income of co-applicant/(s)
Taking home loans these days has become simpler. With the RBI regularly
bring down interest rates; taking home loans have become extremely easy.
Housing loans which were 16.5% to 18% a few years ago fell by 11.5% to 13%.
 With interest rates going down, people increasingly number apply to take these
loans. Some of the leading banks offering home loans in India, including ICICI
Bank, IDBI Bank, HDFC Bank State Bank, Bank of Baroda, Kotak Bank, SBI,
Standard Chartered Bank and Axis Bank.

Documents Required :-

Salaried
Self Employed Professionals Self Employed Businessman
Customers
Application form Application form with Application form with
with photograph photograph photograph
Education Qualifications Education Qualifications
Latest Salary-slip Certificate and Proof of Certificate and Proof of
business existence business existence
Last 3 years Income Tax
Form 16 Business profile
returns (self and business)
Last 3 years Income Tax
Last 6 months Last 3 years Profit /Loss and returns (self and business)
bank statements Balance Sheet Last 3 years Profit /Loss and
Balance Sheet
Last 6 months bank Last 6 months bank
Processing fee
statements statements (self and business)
cheque
Processing fee cheque Processing fee cheque

The Credit Appraisal is an important step in sanctioning loan applications .Hence

the Credit Appraiser needs to have certain important documents to compute the
credit worthiness of the applicant .In the case of salaried person these include the
following :-

1) SALARY SLIPS (3 MONTHS CURRENT) :- The salary slip is usually a

printed sheet of paper that contains 2 components

Income/Earnings collumn: - It contains an exhaustive list of the various

components that are added to the persons salary. They contain various
components like Basic pay, HRA etc.

Deductions :- It contains an exhaustive list of various components that are

deducted from the persons Earnings. They contain various components like
Income tax, Provident fund, Employee Loans etc.

2) BANK STATEMENTS(6 MONTHS CURRENT) ;- The bank statement

contains the various transactions that the applicant performs in his bank account.
It has 3 components

 Date
 Descriptions ;- It contains the brief and standardized description of the
activity or the account related to the transaction .Eg. Clearing cheque
166129, Transfer deposit.
 Deposits: - It contains the amounts that were credited to the account
 Withdrawal ;- It contains the amounts that were debited to the account.
This is carefully studied to find out about any regular withdrawals or a
series of checks so that any existing loans may be revealed and there can
be a correct estimate of the repayment capacity.
 Balance :- It shows effect of transaction on the pre existing account
balance

3) FORM 16 :- It is form given by Employer which states the income earned

from that company during the full financial year ,and gives the details of Tax
deducted at source.

4) COPY OF INCOME TAX RETURN(SARAL) :- The SARAL tax return

form reveals the structure of incomes and/or the various earnings of the tax
returnee .It also shows the various deductions that will not be included and it also
contains the Rebates on which he earns tax benefit.

5) RESIDENCE PROOF :- The residence proof includes the Electricity bill,

Telephone bill, Ration Card ,Passport.

6) PHOTO ID PROOF :- The photo proof includes the Pancard ,Voter ID card,
Employee ID card, Passport etc.

7) AGE PROOF: - The age proof includes the Pan card, Passport, Photo ID.

8) LOAN APPLICATION FORM DULY FILLED :- It can also be

downloaded from friendly web based portal.

9) CHARGES FOR PROCESSING FEES :- This is a standard and nominal

fees to be paid at the time of applying for loan

Fees structure. 0.5% of loan amount

+Service tax of 12%
(Less)Education Less of 3%

OR 5618/-
HDFC takes from applicant whichever is less. This is applicable time to
time.
10) PHOTOCOPIES OF PROPERTY PAPERS.

NON RESIDENT INDIAN

SALARIED/EMPLOYED; - An NRI is a person with Indian citizenship but

residing in another country. An NRI can take a housing loan . He is however not
eligible for a Top Up loans,Home Equity Loans,Non Residential Premises Loans
.He is however eligible for Home Improvement and Home Extension Loans .
An NRI Loan is appraised on the Net Salary. This is the take home pay package
obtained after reducing the deductions from the earnings .As this salary is low it
reduces their loan eligibility .However the salary is converted into Indian
Currency for computing credit worthiness.The figure obtained is higher in Indian
currency hence the loan eligibility rises.Eg 5,487$ american dollars will mean
2,46,915 Rupees.

SELF EMPLOYED PROFESSIONALS :- An NRI applicant can also be a

Doctor, Engineer etc.In these cases will put them in the special category of Self
Employed Professionals.
Their credit appraisal is carried out as follows:-
Their latest available Profit and Loss A/c is reviewed by the credit appraiser. This
account has two sides a Profit side which reveals all earnings and gains .There is
also a Loss side which shows all taxes, liabilities and losses.
We refer to the Profit side a the Gross Receipts.These includes components
revealing the nature and amount of the Prime income and other earnings Eg
Consultation fees in case of Doctor .
From the Gross Receipts we calculate the Gross Profits and thereon move to
calculate Loan eligibility .Which is the loan amount that can be conveniently
sanctioned to the applicant.

Loan Eligibility = Gross Profit * 2

Another important consideration is that the Annual outflow of EMIs should not
exceed the NET PROFIT. The Net Profit is computed by deducting the various
costs and losses from the Gross profit.

Importance of a home loan

1. Tax benefits: –

To encourage more and more people buy their own house,

government of India provides tax deduction on the principal as well as
interest paid on home loan. An individual is eligible to claim a deduction
of up to Rs 1.5 lakh under Section 80C of Income Tax of India 1971 Act
in a financial year. While a deduction of up to Rs 2 lakh is allowed on
the interest portion under Section 24B of Income Tax of India Act. The
deductions under income tax are only available after the construction of
the house is complete. You can’t claim the income tax deductions while
the property is under construction. Read: to know more about home loan
deductions.

2. Tax benefits on second house:-

In case of second house, you are eligible to claim deduction for the
entire amount of housing loan interest paid under Section 24B of Income
Tax Act.

3. No prepayment charges: –

Unlike other loans where lenders charge prepayment penalties on

payment made towards home loan , there are no prepayment penalties on
floating rate home loans . So, whenever you have surplus money, you can
utilize it for making part payment towards your home loan and lower
your burden. However, there will be prepayment charges in case of
floating rate home loan.

4. Balance Transfer Facility: –

In case of home loan you have the facility to transfer your home
loan to different lender if he is giving you loan at a lower interest rate.
Check out our Balance Transfer Calculator to know how beneficial it will
be for you to transfer your loan amount.

5. Makes it easy to buy dream home :-

 For many people buying house with own money is not possible,
home loan as it can be repaid in easy monthly installments makes it easier
to buy a house.

6. High repayment Tenure:-

Among all types of loan, home loan has the longest repayment
tenure which goes up to 30 years, so one can reduce the burden of
equated monthly installments by extending the tenure. Use our home loan
EMI calculator to know how EMI change as you change your home loan
tenure

7. Enjoy capital appreciation: –

You will also benefit from the rise in prices of the property over
time.

8. Saves you from paying rent: –

As rent in metro cities is quite high they put strain on your monthly
budget. It is better to pay the EMIs and own a house.

Need for the study:

Home is a basic need for every human being. The need for home loans arises not
because property prices are heading upwards all the time but because home loans
makes great sense from a loan term saving perspective not only are home loans a
handy tool for the common man to own a roof over his head but they also help to
save money in the long run.
People are increasingly opting for housing loans to acquire their dream home.
Interest rate are coming down all the time and the bank and the housing finance
companies are literally falling over each other to lure the prospective home-
seekers.
Statement of the Problem:
 Due to the problem of illiteracy some home loan applicants and loan
takers could not responds to questionnaire properly. However care
was taken to elicit their opinion as for as possible.
 Rejection of home loan application at the first stage
 Excess burden of down payment.
 Sanctioning of less amount.
 CHAPTER-2

RESEARCH METHODOLOGY OF THE STUDY

RESEARCH METHODOLOGY:-

Research methodology is a way to systematically show the research

problem. It may be understood as a science of studying how research is done
scientifically. It is necessary for the researcher to know not only the research
methods but also the methodology.
This Section includes the methodology which includes. The research design,
objectives of study, scope of study along with research methodology and
limitations of study etc.
 To know the Customers perceptions about home loans
 To study the satisfaction level of customers about home loans.

 To study the problems faced by customers in obtaining the home loans.

 To make comparative study of disbursement of home loans by commercial

banks, the study shall be conducted in the manner enumerated below-

RESEARCH DESIGN:-

This project is based on exploratory study as well descriptive study. It was

an exploratory study when the customer satisfaction level was studied to suggest
new methods to improve the services in providing home loans and it was
descriptive study when detailed study was made for comparison of disbursement
of home loans by commercial banks.

SCOPE OF STUDY

The Indian housing finance industry has grown by leaps and bound in few years.
total home loans disbursements by banks has risen which witnesses phenomenal
growth from last 5 years. There are greater number of borrowers of home loans.
so by this study we can find out satisfaction level of customers and problems
faced by them in obtaining home.

OBJECTIVES OF STUDY

There is no strongest foundation for your dream home, then a cheap loan. Home
loans have become that stronger foundations for people who want to own a home.
The main objectives of the study are as follows:-

 To know the different scheme was under taken in the home loan are
provided to the people.
 To know the function of bank is providing credit facility.
 To examine the home loan lending by the bank.
 To understand the recovery procedure of the bank.
 To find out how home loan is helpful to the common people.
 To make comparative study of Disbursement of home loans by

Commercial bank
 To study the problems faced by customers in obtaining the home loans.

PURPOSE OF THE STUDY

The main purpose of this study is to attain the knowledge of the processing system
of home loans. the main purpose of the study are as follows :-

 To know the ideas of customers about home loan products and services.

 To study the satisfaction level of customers about home loans.

 To study the problems faced by customers in obtaining the home loans.

SOURCES OF DATA :-

To fulfill the information need of the study. The data is collected from
primary as well as secondary sources-

A - PRIMARY SOURCE:-
 I decided primary data collection method because our study nature does
not permit to apply observational method.
In survey approach we had selected a questionnaire method for taking a customer
view because it is feasible from the point of view of our subject & survey purpose.
We conducted 100 sample of survey in our project to judge the satisfaction level
of customers which took home loans.

• Sample size;-
For the questionnaire I have taken the sample size of 100 customers of home
loan.

B – SECONDARY SOURCE:-

It was collected from internal sources. The secondary data was collected
on the basis of organizational file, official records, news papers, magazines,
management books, preserved information in the company’s database and
website of the company.

SAMPLING :-

Sampling refers to the method of selecting a sample from a given universe

with a view to draw conclusions about that universe. A sample is a representative
of the universe selected for study.

SAMPLE SIZE :-
Large sample gives reliable result than small sample. However, it is not feasible
to target entire population or even a substantial portion to achieve a reliable result.
So, in this aspect selecting the sample to study is known as sample size. Hence,
for my project my sample size was 100.
The Sample Size consists of both the Professional and Business class
people. IT peoples, Doctors, Jewelers, Timber Merchants & Real estate Agents
are taken as Sample.

SAMPLING TECHNIQUE:-

Random sampling technique was used in the survey conducted.

PLAN OF ANALYSIS:-
Tables were used for the analysis of the collected data. The data is also neatly
presented with the help of statistical tools such as graphs and pie charts.
Percentages and averages have also been used to represent data clearly and
effectively.

DATA COLLECTION INSTRUMENT DEVELOPMENT :-

The mode of collection of data will be based on Survey Method and Field
Activity. Primary data collection will base on personal interview. I have prepared
the questionnaire according to the necessity of the data to be collected.

3LIMITATIONS OF THE STUDY:-

This study also includes some limitations which have been discussed as
follows:

i) The sample size of 100 customers and 4 banks might prove a limitation because
of difficulty in generalization of results.

ii) To collect the data from various banks was quite difficult due to non-
cooperation of some banks. This proved to be major limitation of the study.

iii) To access such a large number of customers was difficult because of non-
cooperative attitude of respondents.

iv) Lack of data was also the other limitation of the study as some of banks do
not have proper data on topic.

v) There was limitation of time to conduct such a big survey in limited available
time.

vi) Ignorance and reluctant attitude of customers was also a major limitation in
this study.

Thus above all were the limitations in this research study. The maximum
efforts were made to overcome these limitations in the study.
 CHAPTER 3
SWOT ANALYSIS
SWOT Analysis

When we use SWOT analysis, Its often for strategic planning. It prepares for
decisions and gives an overall look at the strengths, weaknesses, opportunities,
and threats of business. But SWOT analysis can also be used to increase and build
upon customer satisfaction.
To give a well-rounded overview of how to use SWOT analysis for a boost in
customer satisfaction, we’ll start with the Strengths and Weaknesses first.

SWOT analysis, for any who may be unfamiliar, is a planning method

typically used in business strategy to identify
the Strengths, Weaknesses, Opportunities and Threats that may face a business
or project.
A number of us have likely had the opportunity to either observe or participate
in this exercise for the broader business in which we work. A quick overview
of the core concepts:

Strengths and weaknesses

 Strengths and weaknesses internal to the organization. Strengths represent
positive attributes or characteristics, factors that provide an
advantage. Weaknesses are attributes or characteristics that place the business
at a disadvantage relative to others.

Opportunities and threats

Opportunities and threats are external to the organization. Opportunities
represent external trends and chances to improve performance - something
happening in the outside environment that presents positive potential. Threats
are elements or trends in the outside environment that could cause trouble for
the business, place it at risk.

STRENGTH

 Reliable suppliers – It has a strong base of reliable supplier of raw material thus
enabling the company to overcome any supply chain bottlenecks.

 Good Returns on Capital Expenditure – Homeloans Limited is relatively

successful at execution of new projects and generated good returns on capital
expenditure by building new revenue streams.

 High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of
customer satisfaction among present customers and good brand equity among
the potential customers.

 Successful track record of developing new products – product innovation.

 Strong Free Cash Flow – Home loans Limited has strong free cash flows that
provide resources in the hand of the company to expand into new projects.

 Strong Brand Portfolio – Over the years Home loans Limited has invested in
building a strong brand portfolio. The SWOT analysis of Home loans Limited
just underlines this fact. This brand portfolio can be extremely useful if the
organization wants to expand into new product categories.
 WEAKNESS

Limited success outside core business – Even though Home loans Limited is
one of the leading organizations in its industry it has faced challenges in moving
to other product segments with its present culture.

 Not highly successful at integrating firms with different work culture. As

mentioned earlier even though Homeloans Limited is successful at integrating
small companies it has its share of failure to merge firms that have different
work culture.

 High attrition rate in work force – compare to other organizations in the

industry Homeloans Limited has a higher attrition rate and have to spend a lot
more compare to its competitors on training and development of its employees.

 Organization structure is only compatible with present business model thus

limiting expansion in adjacent product segments.

 The profitability ratio and Net Contribution % of Homeloans Limited are below
the industry average.

Opportunities

New trends in the consumer behavior can open up new market for the Home
loans Limited . It provides a great opportunity for the organization to build new
revenue streams and diversify into new product categories too.
 The new taxation policy can significantly impact the way of doing business and
can open new opportunity for established players such as Home loans Limited
to increase its profitability.

 The market development will lead to dilution of competitor’s advantage and

enable Home loans Limited to increase its competitiveness compare to the other
competitors.

 Decreasing cost of transportation because of lower shipping prices can also

bring down the cost of Home loans Limited’s products thus providing an
opportunity to the company - either to boost its profitability or pass on the
benefits to the customers to gain market share.
 Economic uptick and increase in customer spending, after years of recession
and slow growth rate in the industry, is an opportunity for Homeloans Limited
to capture new customers and increase its market share.

 New environmental policies – The new opportunities will create a level playing
field for all the players in the industry. It represent a great opportunity for
Homeloans Limited to drive home its advantage in new technology and gain
market share in the new product category.

Threats

 mitation of the counterfeit and low quality product is also a threat to Homeloans
Limited’s product especially in the emerging markets and low income markets.

 No regular supply of innovative products – Over the years the company has
developed numerous products but those are often response to the development
by other players. Secondly the supply of new products is not regular thus
leading to high and low swings in the sales number over period of time.

 Rising raw material can pose a threat to the Homeloans Limited profitability.

 Changing consumer buying behavior from online channel could be a threat to

the existing physical infrastructure driven supply chain model.

 Liability laws in different countries are different and Homeloans Limited may
be exposed to various liability claims given change in policies in those markets.
 CHAPTER 4
OUTCOME OF THE STUDY
OUTCOME OF STUDY

1. Majority of the people got loans between the age of 18 to 25 years only
2. Most of the customers of home loan taken are 70% married and 30% are
unmarried
3. Most of the customers who take home loans are graduated
4. Some of the customer’s felt that the interest rates are somewhat high
5. Some of the customer not having good faith on private banks like Standard
chartered bank, HSBC bank etc.
6. Most of the home loan customers about 50% are working professionally
7. The annual income between two lakhs are more preferring for the home
loans
8. The 90% peoples are known about the home loans
9. The reason for getting the home loan is for due to non-availability of the
funds
10.The most of the customers who got home loan from HDFC
11.The information source of home loan is getting 50% from the newspaper
12.The 60% people are satisfied from Home loan
13.The greater number of respondent of home loan is getting from HDFC is
78%
14.The longer payment period is available for the home loan

15. Greater credit eligibility available for home loan

16.Private sector banks are providing equal importants for both purchase as well
as construction of house

17.The maximum age limit of housing loan borrowers was found 55yrs
18.The maximum repayment period of housing loan is 20yrs (except SBI and
ICICI 25yrs)

19.The majority of housing loan interest is provided under floating rate interest

20.The majority of home loan sanctioned by commercial bank up to 85%

21.The majority of home loan sanctioned by commercial bank for purchase of

house and repairs is 60%

22.The maximum to propose house loan is 12 weeks

23. The minimum of 0.5% loan amount was charged as a processing fee by all
the banks28. It is seen from the analysis that a majority of respondents
(73.97%) in public sector and 72.92% in private sector make repayments
in loan.
24.It was found from the study that a good majority of respondents (71.23%)
in public and 80.42% in private sector save tax with the help of housing
loan up to Rs.5000 annually.

25. From the study it was found that a majority of respondents (79.27%
public and 78.33% private) are of the opinion of approaching the same
bank for other loan requirements.

26. The study revealed that 61.92% of respondents in public sector and
72.92% in private sector do not enjoy any add-on benefits for their housing
loan.

27. Regarding the add on benefits, it was observed that a majority (39.57%)
in public sector and 49.23% in the private sector enjoy personal accidental
insurance facility with their housing loans.
28. It was found from the analysis that a good majority (94.25%) of
respondents in public sector, 78.33% in private sector admit that they would
recommend their respective banks to friends and relatives.

CHAPTER 5
RECOMMENDATIONS AND SUGGESTIONS
This project gave me great opportunity to learn about the all aspects of the
HOME LOAN PRACTISE IN BENGALURU And helped me to know about
current situation of the Road transport.

The learning experience gained by me during the in plant training

was very much practical oriented. Mostly all the concepts which I studied
in the class, are applicable practically
I gained many new management skills and also got a chance to learn new things
on my own experience.
The overall study of the organization

1. Improve skills
One of the most important things you can gain from
internship is new knowledge and network and it helps to improve
many new skills and knowledge

2. Professional communications
It is the best way to learn how to
navigate the working world through real-life hands on experience
one of the most valuable skill you will gain from an internship is the
ability to speak with people in a professionals

3. Making connections
The people who will be reference in the
future it will setup many new connections and build the strong
relationship
 4. Independence
Internship will teach you to make your own
decision and do things on your own being able to work
independently with little guidence is very important in the
working world

I came to know what exactly needs wheather quality of work or quality of work
to be done or both. And also some extent I could understand the GOVERNMENT
work culture. Uniformity which is a essential element that management should
maintain it will also create an impression on the minds of another about their
taste, preference, values .I had a great time working on the project, as it given
insights into the working environment of an organization. The environment is
good. I have learn lot of thing there.
This project gave me a great learning experience and at the same time it gave me
enough scope to implement my educational ability. The information advice
presented in this project is based on secondary information.
These suggestions have been discussed as follows:-

1) To increase their customers, the Home loan should provide specialized

services in this sector. These services can be such as proper guidance to the
customer regarding the processing of loans, especially for the customers who are
illiterate.

2) To satisfy their customers and for good dealings in future, should make
prompt disbursement of loan amount to the customers so that they can buy or
construct their dream home as early as possible.

3) It should use easy procedure, or say, less lengthy procedure for the
sanctioning of loan to the customer. There should be less number of legal
formalities, in case this exists, then, these should be completed in less time. This
will be helpful in attracting more customers.

4) Although the interest rates on specific norms, yet customers seek less
interest rate which can lower their cost of house. So banks should try to lower
their interest rates. Needless to say, that the bank which is having lower interest
rates, have the maximum clients for loans.

5) provide Home loan according to the repaying capacity of the customer

and his/her eligibility. Due to which, some customers are not able to get amount
of loan needed by them.

6) Create awareness: The Company has to take care of awareness creation

about the products and services among the customers.

7) Charges: The Company has to reduce the mortality and administration

charges.

8) The company has to reduce their interest rates on home loan products
and services.

9) The company has to identify the potential customers.

10) Company should consider the present competition and should act
according to the customer needs.

11) The Home loan should try to provide proper knowledge regarding their
home loan schemes, even to people who don't know about such schemes and their
benefits especially in rural areas. So they should provide knowledge to the
ignorant customers, especially in rural areas and backward urban area So, above
are the main suggestions provided to the loan. By considering these suggestions,
the Home loan can strengthen their customer base in home loans sector. They
should improve their services and reduce legal proceedings and should be friendly
to their customers. All this will be helpful to satisfy their customers.
 CONCLUSION

1) In my study we came to know that many peoples are interested to take a home
loan to construct their homes.
2) Home loans have long period when compare to other personal loans and other
loans. So peoples are confused to take a home loan.
3) Even though the interest rates are high peoples are willing to take a loan due
to some reasons.
4) The interest rates also some what high
5) The loan sanction process is low
Finally the whole research was carried out in a systematic way to reach at
exact results. The whole research and findings were based on the objectives.
However, the study had some limitations also such as lack of time, lack of data,
non-response, reluctant attitude and illiteracy of respondents, which posed
problems in carrying out the research. But proper attention was made to Carry out
research in proper way and to make accurate conclusion for the Home loan which
may beneficial for banks to enhance their customer base.
 BIBLIOGRAPHY

REFERENCES
BOOKS

 Berstain David(2008), “Home equity loans and private mortgage

insurance: Recent Trends & Potential Implications”, Vol.3 No.2, August
2008, Pp. 41 – 53

 Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House

Price”.Journal of Housing Economics Vol. 4, No. 3,pp 27 – 34

 La cour Micheal(2006) , “The Home Purchase Mortgage Preferences Of

Lowand-Moderate Income Households”, Forthcoming in Real Estate
Economics , Vol 18, No 4 , December 20, 2006, p. 585.

NEWS PAPERS
 The Times of India
 Financial Express

WEB PAGES:-

1.WWW.HOMELOAN IN INDIA.COM
2. WWW.HOMELOANFIANCE.COM