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INTRODUCTIONIn pursuance of National Housing Policy of Central Government, Reserve Bank of India has been facilitating the flow of credit to housing sector. During last three years, the housing sector has emerged as one of the sectors attracting a large quantum of bank finance. The current focus of RBIs regulation is to ensure orderly growth of housing loan portfolio of banks.
OBJECTIVE OF STUDY To get knowledge about “Indian Housing finance such as operation perform by banks, Different type of bank product, Services” To understand current scenario of the “Indian Housing Finance” To make comparative analysis of SBI, LIC (public sector) and HDFC (private sector) banks.
DIRECT HOUSING FINANCE Direct Housing Finance refers to the finance provided to individuals or groups of individuals including co-operative societies. INDIRECT HOUSING FINANCE Banks should ensure that their indirect housing finance is by way of term loans to housing finance institutions, housing boards, other public housing agencies, etc
HOUSING LOANS UNDER PRIORITYSECTOR The following housing finance limits will be considered as Priority Sector Advances: 1. Direct Finance (i) Loans up to Rs. 15 lakh in rural, semi-urban, urban and metropolitan areas for construction of houses by individuals, with the approval of their Boards. (ii) Loans up to Rs.1 lakh in rural and semi urban areas and Rs. 2 lakhs in urban areas for repairs to damaged houses by individuals.
2 INDIRECT FINANCE (i) Assistance given to any governmental agency for construction of houses, or for slum clearance and rehabilitation of slum dwellers, subject to a ceiling of Rs. 5 lakh of loan amount per housing unit. (ii) Assistance given to a non-governmental agency approved by the National Housing Bank for the purpose of refinance for reconstruction of houses or for slum clearance and rehabilitation of slum dwellers, subject to a ceiling of Rs. 5 lakh of loan amount per housing unit.
Earlier marketing scenario • Walk-in customers • Passive marketing, belief that word of mouth from a satisfied customer was the best form of advertising
Current marketing scenario With increased competition, buyers’ became more demanding Customers want door-step service Use of direct selling agents (third party distribution channels) Captive distribution company Property fairs and exhibitions Cross selling products and services
STUDY ON HDFC, LIC HOUSING FINANCEAND SBI HOME FINANCE Housing Development Finance Corporation Limited (HDFC) HDFC is one of the leaders in the Indian housing finance market with almost 17% market share as on March 2010. Serving more than 38 lakh Indian customers as on March 2011 In the FY 2010-11, it registered a net profit of `4528.41 crore. It also registered a net profit of ` 971 crore in the quarter ended September 30, 2011.
STATE BANK OF INDIA HOME FINANCE (SBI) State Bank of India is another major player in the Indian housing finance market with 17% of the market share, same as HDFCs share as on March 2010. The SBI Housing Loan schemes are specifically designed to meet the varied requirements of the customers. SBI Home Finance registered a net profit of ` 24.63 crore in the year ended March 31, 2009.
LIC HOUSING FINANCE LIMITED LIC Housing Finance is another major player in housing finance sector in India with about 8% of market share. Promoted by Life Insurance Corporation of India, LICHFL has an extensive distribution network with a strong brand presence. Recently, the company has been awarded “Consumer Superbrand 2009/10 Status” by Superbrands Council. In the last financial year (ended on March 31, 2011), LICHFL earned a net profit of ` 974.49 crore, comparing to ` 662.18 in the previous FY. It also registered a net profit of ` 256.50 crore in April- June quarter of 2011.
HDFC HOUSING FINANCE SERVICES Home Loan Home Improvement Loan Home Extension Loans Land Purchase Loans Top – Up Loans
LIC HOUSING FINANCE SERVICES Purchase of flats/house Construction Extension of flats/house Plot purchase Repairs/renovation to existing flats/house
SBI HOUSING FINANCE SERVICES SBI Surakshit Home Loan SBI Yuva Home Loan SBI Home Loan PAL ( Pre-Approved Limit ) SBI Maxgain (Home Loan as an overdraft) SBI Realty NRI Home Loans Gram Niwas
CONCLUSION From the above study we conclude that the net profit of HDFC is higher than SBI and LIC housing finance. SBI provides more services and less interest rate compare to HDFC and LIC housing finance.