Home Loans in India

“HOME LOANS IN INDIA”
A Project Submitted to
University of Mumbai
For Partial completion of the Degree of
Bachelor of Commerce (Accounting and Finance) Under
the faculty of Commerce
BY
VIDHI KISHOR LIMBACHIYA
ROLL NO: 3823
Under The Guidance of
DR. JYOTI PARIMAL SARKAR

Sadhana Education Society’s
L.S. RAHEJA COLLEGE OF ARTS AND COMMERCE
Juhu Road, Santacruz (West), Mumbai 400054
MARCH, 2022
CERTIFICATE
This is to certify that Ms. VIDHI KISHOR LIMBACHIYA worked and

duly completed her Project Work for the degree of Bachelor in
Commerce (Accounting and Finance) under the Faculty of Commerce
in the subject of BLACK BOOK and her project is entitled, “HOME
LOANS IN INDIA” under my supervision.
I further certify that the entire work has been done by the learner under
my guidance and that no part of it has been submitted previously for
any Degree or Diploma of any University.
It is her own work and facts reported by her/his personal findings and
investigations.
(GUIDING TEACHER)
Seal of the College:
Date of Submission:
DECLARATION BY LEARNER
I, the undersigned Miss. VIDHI LISHOR LIMBACHIYA hereby

declare that the work embodied in this project work titled “HOME
LOANS IN INDIA” forms from my own contribution to the research
work carried out under the guidance of DR. JYOTI PARIMAL
SARKAR is a result of my own research work and has not been
submitted to any other University for any other Degree/Diploma to this
or to any other University.
Wherever reference has been made to previous work of others, it has

been clearly indicated as such and included in the Bibliography.
I, hereby further declare that all the information of this document has
been obtained and presented in accordance with academic rules and
ethical conduct.
SIGNATURE
CERTIFIED BY

(GUIDING TEACHER) (EXTERNAL EXAMINER)
MS. VAISHALI PANDYA

(COURSE COORDINATOR)
ACKNOWLEDGEMENT
I would like to acknowledge the following as being the idealistic

channels and fresh dimensions in completion of this project.
I take this opportunity to thank the University of Mumbai for giving

me a chance to do this project.
I would like to thank my Principal, Dr Debajit N. Sarkar for providing

me the necessary facilities required for completion of this project.
I would like to thank my Coordinator, Ms. Vaishali Pandya for her

moral support and guidance.
I would also like to express my sincere gratitude towards my Project

guide DR. JYOTI PARIMAL SARKAR whose guidance and care
made the project successful.
I would like to thank my college library, for having provided various

reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or
indirectly helped me in completion of the project especially my parents
and peers who supported me throughout the project.
CHAPTER TITLE PAGE NO
NO.
1 INTRODUCTION 7
1.1 HISTORICAL HOME LOAN 7
1.2 PRESENT HOME LOAN 9
1.3 SARFAESI ACT 2002 9
1.4 THE FREEING OF THE INTEREST 9
RATE REGIME
1.5 THE GROWTH OF THE HOME 9
LOAN SECTOR
1.6 DIFFERENT TYPES OF HOME LOANS 9
ARE OFFERED BY MORTGAGE
LENDERS
1.7 STEPS TO APPLY FOR HOME 10
LOAN
1.8 WHAT IS THE PROCEDURE 11
FOR HOME LOANS?
1.9 REQUIRED DOCUMENTS FOR 12
HOME LOAN PROCEDURE
1.10 EXPLANATION OF EACH 12

DOCUMENT
1.11 THE LOAN DISBURSAL 20
1.12 LOAN DISBURSEMENT 21
1.13 KEY POINTS TO REMEMBER 21
2. RESEARCH METHODOLOGY 22
2.1 OBJECTIVES OF THE STUDY 22
2.2 SCOPE OF THE STUDY 22

2.3 OFFER A SOLUTION TO THE 23
PROBLEMS
2.4 NEED OF THE STUDY 23
3. MAJOR BANKS 24
3.1 TOP HOUSING FINANCING 24
BANKS IN INDIA
3.2 SBI REGULAR HOME LOANS 25
3.3 FEATURES 25
3.4 ELIGIBILITY 25
3.5 INTEREST RATES 25
3.6 PROCESSING FACE 26
3.7 PRE – SANCTION 26
3.8 POST – SANCTION 26
3.9 PROPERTY PAPERS 26
3.10 ACCOUNT STATEMENT 26
3.11 INCOME PROOF FOR 26
SALARIED APPLICANT / CO-
APPLICANT / GUARANTOR
3.12 INCOME PROOF FOR NON 27
SALARIED APPLICANT/ CO-
APPLICANT / GUARANTOR
4 LITERATURE REVIEW 59-63
5.1 CONCLUSION 64
5.2 DATA ANALYSIS 65-79
6 BIBLIOGRAPHY 80-81
QUESTIONNAIRE 83-84
CHAPTER 1
INTRODUCTION
A home loan (or mortgage) is a contract between a borrower and a lender that allows someone to
borrow money to buy a house, apartment, condo, or other livable property. A home loan is typically
paid back over a term of 10, 15 or 30 years.
A house loan or home loan simply means a sum of money borrowed from a financial institution or
bank to purchase a house. Home loans consist of an adjustable or fixed interest rate and payment
terms
People generally take a home loan for either buying a house/flat or a plot of land for construction of
a house, or renovation, extension and repairs to the existing house.
The property is mortgaged to the lender as a security till the repayment of the loan. The bank or
financial institution will hold the title or deed to the property till the loan has been paid back with the
interest due for it.
The interest rates for home loans can be fixed or floating, or partly fixed and or partly floating,
suiting the needs of the borrower.
There are also certain tax benefits available on your home loan under the Section 80EE of Income
Tax Act. However, the Income tax deduction can be claimed on home loan interest by first time
home buyers only.
For most people, purchasing a home is the biggest financial decision they will ever make. And with
homes often costing hundreds of thousands -- and in some cases millions -- of dollars, most people
can't afford to pay cash for the entire property up front. As a result, they need to take out a
home loan (i.e. borrow) from a bank, credit union, or specialized mortgage lender for borrowers with
lower budgets.
1.1 HISTORICAL HOME LOAN:

In the past, the mentality of the people was to save and purchase. People used to dip into their
Provident Fund savings and retirement benefits to raise money for constructing houses.
HDFC started the trend of Home Loans in 1978. Banks were reluctant to finance Home Loans
because there was no recovery mechanism in place. The only recourse available to banks was
to file a civil suit in the court of law. The litigation expenses were higher than the actual loan amount.
It can surprise you that the Home Loan interest rates were around 11-14% up to 1994.
The average age of the Home Loan borrower was about 42 years with the average amount of
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loan being 39,000 (Source HDFC).
With the opening of the economy in 1991, banks started to enter the Home Loan market. ICICI Ltd
(later on merged with ICICI Bank) ventured into the Home Loan market in 1999. The year 2000
saw the introduction of the floating rate concept by ICICI Bank. The rates started plummeting
from around 2003-04 when floating rates for Home Loans were in the range of 7% to 7.25%.
The fixed rates were around 7.5-8%.
State Bank of India entered the market in a big way and introduced the teaser rate concept.
They could afford to do so because of the high proportion of CASA (Current Account Savings
Account) deposits. Other banks did not have this advantage. They resorted to measures like
maintaining high Loan to Value (LTV) ratios to attract customers.
During the early days of Home Loans, the LTV ratio used to be less than 50%. The increase in
the competition saw the LTV ratios go up to even 120%. Subsequently, the Reserve Bank of India
(RBI) capped it at 80%. Banks have the freedom to go up to 90% in case the loan is for less than
30 Lakhs.
1.2 PRESENT HOME LOAN:

With many positive changes, 2019 looks like a good year for the housing sector as buyers can finally
acquire their dream home. Property prices, currency and inflation are stagnant, interest rates are lower
and numerous tax incentives and subsidies like PMAY are giving the real estate market a much
needed boost with a new wave of affordability. The demand for home loans is expected to go up from
the present 28% to 40% by 2025. Budget 2019 has proposed to hike the deduction which is claimed
for interest paid on housing loans by Rs.1.5 lakh to Rs.3.5 lakh per annum for homes valued up to
Rs.45 lakh, which is available on loans taken up to 31 March 2020. With this deduction, the total
benefit becomes Rs.7 lakhs for a loan tenure of 15 years. This move will further boost the demand
for affordable homes.
Housing is the 4th largest contributor to the country’s GDP and has the potential to drive domestic
growth. The housing demand is at an all time high in 2019 because of rapid urbanisation with
demographic focus on nuclear families, lower penetration of mortgage and 65% of the population
being below the age of 35. Interest rates will mostly be stable but banks are now switching to an
external benchmark to determine rates which may create volatility in the short run but will be
beneficial in the long run for home loan borrowers.
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1.3 SARFAESI ACT 2002
Before 2002, there were no regulations to deal with defaults on home loans. There was a need for
strong legislation. The introduction of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act (SARFAESI) in 2002 gave banks the power to deal with
Home Loan defaults. This Act encouraged the banks to foray into the home loan sector.
1.4 THE FREEING OF THE INTEREST RATE REGIME:

With the opening of the economy, the RBI gave banks the freedom to fix their rates of interest on
Home Loans depending on the cost of funds. It blew out into an interest rate war with banks
competing against each other to offer the best rates to the customers. There was a spate of Home
Loan offers from banks trying to entice customers.
Even today, the floating rate regime is prevalent in the industry. Some banks offer fixed rates but only
for a specific period, after which they convert to the floating rate concept.
1.5 THE GROWTH OF THE HOME LOAN SECTOR

As banks started feeling comfortable giving Home Loans, customers began availing them. Hence,
the average age of the Home Loan borrower began reducing. Today, the average age is around 32
years. Customers have realised that taking a Home Loan to buy a house is better than doing so
with their savings. The Government of India has played the role of the catalyst in the growth of the
Home Loan sector by introducing concessions in income tax for home loan borrowers.
Today, these concessions are one of the principal reasons why people opt for home loans. Banks have
also come up with various new products like Home Loan Balance Transfers, loans for purchase of
plots, loans for home renovation and improvement, and so forth. Today, home loans constitute a
significant portion of the bank’s loan portfolio.
There are several types of home loans available on the market, but each home loan is typically defined
by four main factors:
1. THE PRINCIPAL: The amount of money you're borrowing. This amount is typically the
purchase price minus your down payment, minus closing costs and other related fees.
2. THE TERM: How long you have to repay the entire loan. The term of a home loan can range
between five to 30 years.
3. THE INTEREST RATE: The annual amount you need to pay the lender to borrow the
money, shown as a percentage of the current principal balance
4. THE REPAYMENT FREQUENCY: How often you make payments. Borrowers usually
pay back their mortgages on a monthly or bi-weekly basis. Here's an example of how a home loan
works. Let's say I'm attempting to buy a Rs.400,000 home. After paying Rs.80,000 of my own
money as a down payment on a new home, I need to borrow Rs.320,000 to pay for the rest of the
house. After shopping around and submitting my financial information for approval, a lender offers
me a home loan for Rs.320,000 (the principal) with a fixed term of 30 years (the term) at a rate of
5% (the interest rate), to be repaid in monthly installments (the repayment frequency). By putting
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these numbers into a mortgage calculator or amortization schedule calculator, my monthly payment
in this example would be Rs.1,717.83 per month.
1.6 DIFFERENT TYPES OF HOME LOANS ARE OFFERED

BY MORTGAGE LENDERS:
Home loans are designed to suit a variety of borrower needs and budgets, and thus can come in
several different forms. Here are three of the most common types of home loans.
• FIXED-RATE MORTGAGES:
The most common type of home loan is the fixed-rate mortgage, which requires a borrower
to repay the principal over a "fixed term" (an unchanging length of time) with a "fixed rate"
(an interest rate that never fluctuates over that time period). Borrowers looking for steady
and predictable mortgage payments often take out 30-, 15-, or 10-year fixed-rate mortgages.
Generally, the shorter the term of the fixed-rate mortgage, the lower the interest rate the
borrower can get.
• ADJUSTABLE-RATE MORTGAGES (ARMS):

Unlike a fixed-rate mortgage with its static interest rates, adjustable-rate mortgages (ARMs)
have variable interest rates that can move up or down over the course of the loan. To entice
buyers with smaller budgets, lenders frequently offer one-year ARMs with a more affordable
introductory interest rate for the first year (often with interest rates that are significantly lower
than a comparable fixed-rate mortgage). The interest rate can then increase in the following
years if market interest rates go up. As you might imagine, this can become costly for a
borrower if the Federal Reserve raises interest rates over time, as the borrower's monthly ARM
payments would also increase.
• HYBRID, ADJUSTABLE-RATE MORTGAGES:

A cross between a fixed-rate mortgage and an ARM, the hybrid mortgage offers a fixed rate
for a set term (usually fewer than 10 years) and then allows the interest rate to adjust up or
down much like an ARM loan would. For example, a 5/1 hybrid mortgage, or 5/1 ARM,
offers a borrower a fixed interest rate for 5 years before switching to an adjustable rate (with
the rate adjusting once per year) for the remainder of the home loan's term. As the
"goldilocks" option among home loans, hybrid mortgages typically offer interest rates that
are lower than fixed-rate mortgages and higher than ARMs.
1.7 STEPS TO APPLY FOR HOME LOAN:

The 9-Step Guide For Home Loan Procedure
A decade back, the home loan procedure was time-consuming and difficult but not anymore. Online
has made it all trouble-free and processing a home loan application is only a few hours away, given
that the applicant submits all the required documents properly.
The procedure to take a home loan is simple. Though this varies from one bank to the other (in
India), the overall procedure is the same. To help you further, here is a detailed step-by- step guide
on how it is done.
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1.8 WHAT IS THE PROCEDURE FOR
HOME LOANS?
The steps to complete the home loan process are as
follows:
STEP 1: Fill The Loan Application Form & Attach The

Documents
STEP 2: Pay The Processing Fee
STEP 3: Discussion With The Bank
STEP 4: Valuation Of The Documents
STEP 5: The Sanction/Approval Process
STEP 6: Processing The Offer Letter
STEP 7: Processing The Property Papers Followed By A

Legal Check
STEP 8: Processing A Technical Check & The Site

Estimation
STEP 9: The Final Loan Deal, Signing The Agreement,

& Disbursal
STEP 1:
Fill The Loan Application Form & Attach The Documents.
The procedure to take Home Loan begins with an
application form. This loan application will require a few
basic information about the applicant. Usually, this
includes:
• The personal details of the applicant (Name, Phone
number, etc.)
• The residential address of the applicant
• The monthly or yearly income of the applicant
• The educational information of the applicant
• The employment details of the applicant
• The property details on which the loan is applied

• The estimated cost of the property
• The present means of financing the home property
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1.9 REQUIRED DOCUMENTS FOR HOME LOAN PROCEDURE
Once the formal application is filled, the next step is to attach all the valid documents
required by the bank with it. Usually, this includes the:
• Applicant’s income proof
• Applicant’s identity (or ID) proof
• Applicant’s age proof
• Applicant’s address proof
• Applicant’s employment details
• Applicant’s educational proof (school/diploma/degree certificates)
• Applicant’s bank statements
• Property details on which the loan is applied (if finalized)
NOTE: Most banks offer doorstep service. Hence, an applicant doesn’t have to spend
his or her time waiting at the bank and having the documents submitted. However, a
few banks might still want the applicant to visit their respective workplace at least
once.
There are three important reasons banks ask for all the above proofs from an
applicant:
• ONE: To authenticate the applicant.
• TWO: To obtain valid clues on the applicant’s financial health.

• THREE: To check if the applicant is eligible and has sufficient income to pay
back the loan.
1.10 EXPLANATION OF EACH DOCUMENT

1. INCOME PROOF:
This is the applicant’s actual proof of income. This usually encloses a copy of the
each:
❖ ITR (Income Tax Returns) for the last 3 years
❖ Annual accounts/Computation of Income (if any)

❖ Salary slips for the last six months
❖ Form 16 or Form 16A for the last three months
❖ Bank statements for the last 6 months
❖ Other bank accounts (active) if it reflects the current income
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NOTE: You may also be asked to submit a few other employment details but this
differs from one bank to the other. Overall, the documents mentioned above are
mandatory.
2. IDENTITY (OR ID) PROOF:

This is the applicant’s proof of identity. This document should have a clear
photograph of the person. It can be a copy of any one of the below:
➢ PAN card of the applicant
➢ Driving license of the applicant
➢ Aadhaar card of the applicant
➢ Voter Id of the applicant
➢ Passport of the applicant
➢ Ration card - if it contains the applicant’s photograph
3. AGE PROOF:
This is the applicant’s proof to validate his/her DOB (Date of Birth) and age. The
applicant can submit a copy of any one of the documents mentioned below: Driving
license of the applicant
➢ PAN card of the applicant
➢ School/college transfer certificate of the applicant
➢ Ration card of the applicant
4. ADDRESS PROOF:
This is the applicant’s proof to authenticate his or her residential address. The
applicant can submit a copy of any one of the documents listed below:
➢ Aadhaar card of the applicant
➢ Ration card of the applicant
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5. EMPLOYMENT DETAILS:
This encloses the applicant’s employer information. If the organization the applicant
is working for, has a standard website, then that will do. However, if the firm is not
popularly known or is small, then the applicant has to submit a summary of the
company profile, which usually includes the below:
➢ The location of the company the applicant is working for.
➢ The business sector the company features in.
➢ The nature of the firm.
➢ The company’s turnover and profit.
➢ The number of employees working in the company.
➢ The number of branches the company holds (with the headquarters).
➢ The company’s competitors.
➢ The company’s customers.
6. EDUCATIONAL PROOF:
This is the applicant’s piece of evidence of his or her education information. This can
usually include a copy of any one of the documents listed below:
➢ School certificate of the applicant.
➢ College graduation certificate of the applicant.
➢ Diploma certificate of the applicant
7. BANK STATEMENTS:
This is the applicant’s bank statements of the transactions happened in the last six
months. This is asked by the bank:
➢ To Check The Activity Level: This applies to a self-employed individual. It
gives a proper evidence of the business activities done through the bank.
➢ To Check The Average Balance: A sufficient amount of balance maintained
by the applicant can raise a green flag for the loan sanction. So, a bank
investigates this to see the saving and spending habits of the applicant.
➢ To See The Cheque Returns: This is usually a small fee debited the bank
saying that the cheque handed out by the applicant was actually returned by the
bank. The more the cheque returns, the lesser are the chances for the loan to be
sanctioned.
➢ To Look For Cheque Bounce: Any cheque(s) that goes on a bounce is visible
in the bank’s statement. Note that every bank has certain norms on how much
of that can be acceptable in a one-year period. The more, the worse.
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➢ To Check For Consistent Periodic Payments: If there are any periodic
payments done to the other financial institutions or banks, then it is a clear sign
that there exists a liability. In such cases, the applicant has to provide complete
details.
➢ To Check For Investments: Any investment made by the applicant will also
be helpful while sanctioning the loan. In fact, this assists a bank to assess the
abilities of an applicant to pay off some amount as a down payment.
8. PROPERTY DETAILS:
This is the home property documents for which the applicant applies a loan for. If the
property has been finalized, then the applicant has to submit all the necessary details
to the bank.
STEP 2:
Pay the Processing Fee. Once the formal application and document submission
process is done, the applicant has to pay the processing fee to the bank. This is the
amount collected for maintaining the applicant’s loan account. It includes sending
some confidential paperwork (like IT certificates, post-dated cheque, etc.) every year.
The processing fee of a bank usually:
❖ Ranges from 0.25 % to 0.50 % of the requested loan amount. Say, for
example, the applicant has applied for a home loan of Rs. 15 lakh, then the
processing fee will be Rs. 3,750 (at 0.25%) and Rs. 7,500 (at 0.50%)
respectively. A commission is then generated by the bank to the agent handling
the applicant’s home loan process, which to an extent is taken from the
processing fee paid by the applicant. Though most banks have a proper fee
structure, it can be negotiated. There is no crime in trying to bargain with the
processing fee.
NOTE: Every bank will have a processing fee for a loan. However, there are banks
that offer zero processing fee home loans. Well, don’t fall for this because this
advantage can call for a higher rate of interest, stamp duties, and other legal charges .
STEP 3:
Discussion with The Bank. Once the applicant has completed the application and
documentation process, he or she has to wait until the bank or the respective financial
company checks the papers. It usually takes about 1-2 days or even less if the
submitted paperwork is correct. However, there might be times when the bank might
want the applicant to pay a visit to the bank for a face-to-face interaction before the
loan is sanctioned. This is done to collect more details about the applicant and to
make sure if he/she will be able to repay the loan with the interest amount.
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STEP 4:
Valuation of The Documents. Keep in mind that millions of people apply for home
loans on a daily basis and to ensure that bank approves the paperwork as soon as
possible, the applicant has to be genuine in the entire procedure. Any fake document
or fraudulent activity is unacceptable by the bank. It is a criminal offense and can
lead to bigger troubles. As soon as the application form & documents are submitted,
and the processing fee is paid, the bank authority then evaluates them.
A bank examines the following details of an applicant:
• Residential address (previous and current)
• Place where he/she is employed
• Credentials of the employer
• Workplace contact number
• Residence contact number
NOTE: A bank representative pays a visit to the applicant’s residence or workplace
to verify his/her details. At times, the references listed by the applicant in the form
are also checked. This enables a clear trust between both the parties.
STEP 5:
The Sanction/Approval Process The approval or sanction part is one of the most
crucial stages of a home loan process. This can either have a fruitful result or can be
rejected. It all comes down to the bank. If it is not satisfied with any of the documents
provided by the applicant, the probability of approval turns less. However, if
everything goes well, the loan will be sanctioned or approved in no time.
A bank usually deep-checks the applicant’s following documents to approve a home

loan:
➢ The qualification, age, and experience details.

➢ The transactions made with the applicant’s bank.
➢ The monthly and yearly income.
➢ The current employer and the type of job he/she pursues.
➢ The nature of the business (applicable only for a self-employed).
The ability to repay the loan amount with the set interest rate.
Based on the information mentioned above, the bank finalizes and communicates the
maximum loan amount the applicant can receive. Finally, this proceeds with an
official sanction letter. It can be either unconditional or can contain a few policies,
which has to be fulfilled by the applicant before the disbursal.
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STEP 6:
Processing The Offer Letter. As soon as the loan is sanctioned or approved, the bank
then sends a certified offer letter, which mentions the following details:
• The loan amount that is being sanctioned.
• The interest rate on the total loan amount.
• Whether the interest rate is variable or fixed.
• The loan’s tenure details.
• The mode of loan repayments.
• Terms, policies, and conditions of the home loan.
THE ACCEPTANCE COPY

Once the applicant agrees to the offer letter, he or she has to sign a duplicate copy of
the offer letter, which is for the bank’s records. Years back, this usually came with a
specific administrative fee. However, it is no longer practiced.
NOTE: Make sure to read all the details carefully. Check if the rate of interest is
applied as per the percentage discussed and decided with the bank. Remember that
the interest rate on the home loan can be negotiated. Always give it a try and use this
as the best for your advantage.
STEP 7:
Processing The Property Papers Followed By A Legal Check.Once the offer letter is
officially accepted by the applicant, the bank next concentrates on the home property
he/she intends to purchase. Even if it is not finalized, the applicant can request for a
time duration to select one. Once the property is selected, the applicant has to:
➢ Submit all the original property documents to the bank. It remains with them
until the loan is repaid. Also, this serves as the security towards the home loan
the applicant has applied for.
➢ The original property papers will normally include the following details:
➢ The name of the seller.
➢ The identification and address proofs of the seller.
➢ The name of the property.
➢ The address of the property.
➢ The chain of written documents if the seller isn’t the primary or actual owner.
➢ NOC (No Objection Certificate) from the primary legal owner (if any).
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➢ NOC from the statutory development board representative & cooperative
housing society.
➢ If the land is already on a lease, the bank will require a NOC from the lessor as
well.
NOTE: The original property papers stay with the bank until the home loan is
completely repaid.
LEGAL CHEQUE: Once the property papers are submitted, the bank then validates
them for authentication. This process is termed as “legal check.” In fact, the sale
papers between the applicant and the seller are verified. These original documents are
sent to the bank’s lawyer for an in-depth check. Only when the lawyer approves all
the submitted documents as clear, then everything related to home loan is good. If
not, the applicant will be asked to submit a few more documents for verification.
STEP 8:
Processing A Technical Check & The Site Estimation. Every bank is highly cautious
with the loan it lends and the home property it plans to finance. Hence, a technical
check or a double check is further done. The bank sends a property expert to check
the premises an applicant intends to buy. Now, this person could either be an
employee of the bank or a civil engineer or someone from an architect’s firm.
The visit to the “site property” is basically conducted for verifying the details given
below:
➢ The stage in which the construction is.

➢ Quality of the construction.
➢ Work progression.
➢ The time required to build the house.
➢ The layout of the house and whether the governing authority has permitted it
or not.
➢ If the builder has valid requisite certificates for construction on the land.
➢ Property valuation and the environmental areas.
➢ If the construction is already for resale or in a ready stage, then the
representative will check for:
➢ The building’s age.
➢ The internal or external property maintenance.
➢ The loan tenure and if the building falls within the applicant’s loan eligibility
criteria.
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➢ The quality of the construction.
➢ The surrounding area.
➢ The valid requisite certificates to hand over the flat/house’s possession to the
buyer.
➢ The existing mortgage on the home property.
➢ The property valuation.
➢ The building’s approval plans, following the government laws, etc.
NOTE: A bank conducts a proper technical check to understand the construction

progress and to gain the trust of the applicant. This is an important phase of the home
loan process and hence, cannot be skipped by the applicant. Also bear in mind that
there will be a fee for this technical check, which may be either charged separately or
might be taken from the upfront fee.
THE SITE’S VALUE ESTIMATED:

Once the expert completes the technical inspection of the site it is then followed by
determining and checking the property’s overall value. This is basically done because
of the increase malpractices. There have been multiple cases where the applicants
have shown property purchases from the associated entities at extremely inflated rates
just technique cheap loans. Thus the risk for a bank to lend the money to his /her
applicant has become high. However, a site’s estimation can help the bank to
determine the total loan amount so that the sanction is straightforward.
NOTE: A few banks charge an extra fee for the estimation check as well. It is
covered either by the upfront amount or the applicant might be asked to pay
separately.
STEP 9:
The Final Loan Deal, Signing The Agreement, & Disbursal The Final Loan Deal.
Once the technical and site’s estimation is done by the bank, and the lawyer clears all
the paperwork, the next step is the final registration of the deal. The lawyer of the
bank finalizes the loan documents, drafts them, and have them stamped as well as
signed
SIGNING THE LOAN AGREEMENT

After the paperwork is complete, the applicant has to sign the agreement of the home
loan. He/she has to submit the cheques (post-dated) for the initial 36 months or the
duration both the parties have agreed upon. After this, the original property papers
have to be handed to the bank. Some banks can even create a video recording of the
applicant handing over these papers to the bank. This is for the bank’s security,
Page | 19
safety, and proof. This stage is known as the MOE (Memorandum of Execution) and
has a stamp duty based on the state the applicant applies at. This duty is paid by the
applicant.
1.11 THE LOAN DISBURSAL

Once the applicant signs the papers and everything is legally clear, the loan amount is
given via cheque. However, prior to this, the applicant has to submit a few essential
documents to the bank, as these will serve as his/her personal contribution to the
home property. If the applicant is trying to source some more funds from outside,
then the pieces of evidence have to be submitted as well. Only then, the bank releases
the loan’s part-disbursement. The cheque is always under either the seller or
development/society authority or builder. Nevertheless, there can be a few
exceptional cases too. Say, for instance, the applicant has made excess payment from
his/her own account, then the cheque is handed to him/her directly from the bank.
NOTE: Make sure not to delay the house loan process after approval because every
day counts here. The moment the loan is sanctioned, the interest rates are charged
from that day onwards. So, every single day costs! Hence, ensure that the cheque is
taken on the mentioned delivery date. Avoid paying additional interests.
1.12 LOAN DISBURSEMENT

Here are a few important questions often asked by the applicants regarding the loan
disbursement.
1. WHAT IS FULL DISBURSEMENT?

A loan is disbursed based on the construction stage of the house property. In the case
of ready/resale, the loan disbursement is full, meaning that the bank delivers full or
complete payments to the recipient via cheque.
2. WHAT IS PART DISBURSEMENT?

If the house is “under construction”, the loan payment is typically done in parts,
which is officially termed as a part disbursement. When the loan is disbursed partly,
the bank will not begin the EMIs right away. Since the EMI is calculated against the
total loan sum at the agreed interest rate for a given duration, the repayment dues on
part disbursement may not be applicable in the beginning. To resolve this, banks
charge SI (Simple Interest) on the loan amount that is partly disbursed. Say, for
example, the applicant has sanctioned a loan amount of Rs 15 lakh. For some reasons,
the home is still under the stage of construction, and this has made the bank to only
disburse Rs. 8 lakh (for the time being), then the charged interest will only be on the
Rs. 8 lakh and not on Rs. 15 lakh. This method continues until there is a final
disbursement taking place and is termed as “pre-EMI.”
Page | 20
1.13 KEY POINTS TO REMEMBER
• Research for the banks offering the cheapest home loans.

• Read the bank’s eligibility criteria carefully before entering the procedure to take
home loan.
• Keep all the ID proofs, address proofs, employment proofs, and other details handy.
• Do not fake any of the documents, as this will only call for serious troubles.
• During the face-to-face meeting with the bank representative, ensure to carry the
original documents.
• Just because the applicant is eligible for a home loan, it doesn’t mean he/she can
borrow a higher sum.
• The interest rates are negotiable. So, always use this opportunity for the best.
• There is a separate fee for processing the loan, reality check, site estimation, and
other administrative works.
• Do not skip any stage during the valuation and verification process.
• Read every loan document carefully before signing.
• Once the loan is sanctioned, the original property papers are handed over to the
bank and remain with them until the loan is completely repaid.
• It usually takes about two weeks to complete the process of home loan, provided
that the documents submitted by the applicant are valid.
Page | 21
N CHAPTER 2
O
T
E
: RESEARCH METHADOLOGY
A
b
a This chapter focuses on research methodology that was used in the study. It provides detailed
n description of the research approach adopted in this study.
k
c Research design, data collection and analysis used were presented in the subsequent sections.
o
This study is mainly based on the secondary data. The secondary data was collected through
n
d website and through research paper. This research has interpretation of top 3 home loan bank.
u
c
t
s
a 2.1 OBJECTIVE OF THE STUDY
p
r
o• To know what products of Home loans are there in the market of the top 3 banks
p
e• To know the schemes offered by the bank to the customers and at what basis
r
t
• To know the different Interest Rates at which the company gives the product.
e
c
h• Awareness about Home Loans In India
n
i• To analyze Indian home loan market and its growing trends
c
a
• To analyze various methods of operating a home loan4.To gain knowledge about various home
l
c loan products
h
e
c• To know various rates available while providing home loan
k
t
o
u
n
d 2.2 SCOPE OF THE STUDY:
e
r• The present study is confined in Home loan products offered by the domestic operations of State Bank
s of India.
t• The study is also confined to the internal functional and operational aspects of lending process.
a• The data collected and the information collected here is primary and secondary data.
n
d
t
h
Page | 22
e 2.3 OFFER A SOLUTION TO THE PROBLEMS:
c
o
n❖ To suggest better alternative organizational and operational practices.
s
t
❖ To change its capacity to tap potential market in the home loan sector.
r
u
c❖ To reduce credit risk
t
i❖ To enhance the recovery system in the bank giving the home loans.
o
n
p 2.4 NEED OF THE STUDY:
r It has been felt very useful in future:-
o
g➢ To study the roles of the staff and the decision making processes in the lendimg to the home loans
r Borrowers
e
s➢ To learn and comprehend thoroughly the systems and Procedures used in financing the segment.
s
a
➢ To analyze the issue relating to various financial aspects of lending.
n
d
t➢ To calculate the risk involved and how the risk and uncertainty to be assessed and managed by the
o bank while lending the home loans.
g
a➢ To study valuation of collateral security method followed by bank while lending the home loans.
i
n
t
h
e
t
r
u
s
t
o
f
t
h
e
a
p
p
l
i
c
a
n
t
.
T
Page | 23
h
i
s CHAPTER 3
i
s
a 3. MAJOR BANKS
n
i
m
p
o 3.1 TOP HOUSING FINANCING BANKS IN INDIA:
r
t
a 1. HDFC Housing Finance
n HDFC Housing Finance offers different types of home loan products such as plot loan, rural housing
t loan, home improvement loan, and home extension loan among others. The interest rates for home
p loan starts from 8.55%. The home loan schemes are available for salaries and self-employed resident
h
Indians in the range of 18-65 years.
a
s
e 2. PNB Housing Finance Limited
o
PNB Housing Finance offers home loan at competitive interest rate for resident Indians as well as
f
t non-resident Indians. It offers home loans under different schemes that are aimed at government
h employees, general public, and others.
e
h
3.
o State Bank of India offers attractive interest rates on home loans starting at 6.70% p.a. SBI is offering
m interest concession of 70 bps with rates starting at 6.70% pa. and zero processing fee. This offer is
e valid till 31st March 2022. The loan tenure can be extended up to 30 years, ensuring a comfortable
l repayment period. The processing fee on these loans is 0.35% of the loan amount (Min. Rs.2,000;
o Max. Rs.10,000) plus applicable taxes. Women borrowers are also offered an interest concession of
a 0.05% on SBI Home Loans. No hidden charges and a full waiver of prepayment charges make them
n one of the most preferred housing loan products in the country.
p
r
4.
o Kotak Bank offers Digi Home Loan at attractive interest rates starting at 6.55% p.a. for both salaried
c and self-employed applicants. The rate is being offered as part of their special balance transfer offer.
e You can avail a loan amount of up to 90% of the property value in case of a home loan balance
s
s transfer. The Kotak home loan is offered with loan tenures of up to 20 years. The bank charges zero
a processing fee for online applications. The bank also offers its housing loans under the PMAY scheme
n and concessions for women borrowers.
d
h
5.
e Axis Bank offers eligible customers housing loan options with interest rates starting at 6.90% p.a. on
n floating rate loans, and 12% p.a. on fixed rate loans. The tenure can be extended up to 30 years in the
c case of floating rate loans and 20 years in the case of fixed rate loans. The processing fee applicable
e can be up to 1% of the loan amount (Min. Rs.10,000) of which Rs.2,500 plus GST is to be paid
,
c upfront at the time of loan application login.
a
n
n
Page | 24
o 3.2 SBI REGULAR HOME LOAN
t
b
e SBI Home Loans is the largest Mortgage Provider in the country. It has successfully helped
s
k over 30 Lakh families achieve their dream of owning a home.
i "THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer
p
p Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18
e
in association with AC Nielsen-ORG Marg in 21 cities across India. SBI Home Loans come to
d
b you on the solid foundation of trust and transparency built in the tradition of SBI. It includes
y
t options for purchase of ready built property, purchase of under construction property, purchase
h of pre-owned homes, construction of a house, extension of house and repair/renovation.
e
a
p
p
3.3 FEATURES:
l • Home Loan products to suit every customer need
i • Low Interest Rates
c • Low Processing Fee
a • No Hidden Charges
n
• No Pre-Payment Penalty
t
. • Interest charges on Daily Reducing Balance
A • Repayment up to 30 years
l • Home Loan Available as Overdraft
s • Interest Concession for Women Borrowers
o
b
e 3.4 ELIGIBILITY
a
r • Resident Type: Resident Indian
i • Minimum Age: 18 years
n
m • Maximum Age: 70 years
i • Loan Tenure: up to 30 years.
n
d
t
h 3.5 INTREST RATES
a
t
t
h
e
r
e
w
i
l
l
b
Page | 25
e PROCESSING FEES
3.6
a
f 1. Zero Processing Fees upto 31st March 2019
e
e *Plus applicable taxes
f
o
r
t PRE-SANCTION
3.7
h
i
s 1. Advocate's fee for property search and title investigation report.
t 2. Valuer's fee for valuation report.
e
c
3.8
h POST-SANCTION
n
i 1. Stamp duty payable for Loan agreement & mortgage.
c 2. Property insurance premium.
a 3. CERSAI Registration Fee of Rs 50 + GST up to Rs 5 Lakh limit; and Rs 100 + GST for limits above Rs
l 5 Lakh.
c
h • LIST OF PAPERS/ DOCUMENTS APPLICABLE TO ALL APPLICANTS:
e 1. Employer Identity Card
c 2. Loan Application: Completed loan application form duly filled in affixed with 3 Passport size
k photographs
, 3. Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card
w 4. Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/
h Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card
i
c
3.9
h
PROPERTY PAPERS:
m
a 1. Permission for construction (where applicable)
y 2. Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
b 3. Occupancy Certificate (in case of ready to move property)
e 4. Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
e 5. Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder,
i Conveyance Deed (For New Property)
t 6. Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller
h
3.10
e ACCOUNT STATEMENT:
r
c 1. Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s
h 2. If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
a
r 3.11 INCOME PROOF FOR SALARIED APPLICANT/ CO-APPLICANT/
g
e GUARANTOR:
d
s 1. Salary Slip or Salary Certificate of last 3 months
e 2. Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT
p Dept.
a
Page | 26
r 3.12 INCOME PROOF FOR NON-SALARIED APPLICANT/ CO-APPLICANT/
a GUARANTOR:
t
e
l 1. Business address proof
y 2. IT returns for last 3 years
o 3. Balance Sheet & Profit & Loss A/c for last 3 years
r 4. Business License Details(or equivalent)
m 5. TDS Certificate (Form 16A, if applicable)
i 6. Certificate of qualification (for C.A./ Doctor and other professionals)
g
h
t 2) SBI BALANCE
b
e TRANSFER OF HOME LOAN
t
a
k
e Switch your Home Loan to SBI and Save Big! SBI offers Balance Transfer of home loan that enables a
n customer to transfer home loan from Scheduled Commercial Banks (SCBs), Private and Foreign Banks,
f Housing Finance Companies (HFCs) registered with National Housing Bank (NHB) and Borrower’s
r employers if they are Central/State Govt or their undertakings or Public Sector Undertaking subject to
o condition that the borrower should satisfy the eligibility criteria for availing Home Loan as per the Bank's
m instruction and has serviced interest and/or instalment of the existing loan regularly, as per the original
t terms of sanction. The borrower should have valid documents evidencing the title to the house/flat.
h
e
u FEATURES
p • • Low Interest Rates
f • • No Hidden Charges
r • • No Pre Payment Penalty
o • • Interest charges on Daily Reducing Balance
n • • Home Loan Available as Overdraft
t • • Interest Concession for Women Borrowers
f
e
e ELIGIBILTY
. • • Resident Type: Resident Indian
• • Minimum Age: 18 years
• • Maximum Age: 70 years
• • Extended Loan Tenure.
Page | 26
• 1. Zero Processing Fees

•
FEES
• PROCESSING FEE*
*Plus applicable taxes

•
Page | 27
PRE-SANCTION**
1. Advocate's fee for property search and title investigation report.
2. Valuer's fee for valuation report.
• POST-SANCTION**
1. Stamp duty payable for Loan agreement & mortgage.
2. Property insurance premium.
3. CERSAI Registration Fee of Rs 50 + GST up to Rs 5 Lakh limit; and Rs 100 + GST for limits above Rs
5 Lakh.
• LIST OF PAPERS/ DOCUMENTS APPLICABLE TO ALL APPLICANTS:

1. Employer Identity Card
2. Loan Application: Completed Loan Application form duly filled with 3 Passport size photographs
3. Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card
Page | 27
4. Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity Bill/Water
Bill/Piped Gas Bill or copy of Passport/ Driving License/Aadhar Card
• PROPERTY PAPERS:
1. NOC from Society/Builder

2. Registered agreement for sale
3. Occupancy Certificate
4. Share Certificate(only for Maharashtra), Maintenance Bill, Electricity Bill, property tax receipt
5. Chain of all old Agreements for sale
Page | 28
• ACCOUNT STATEMENT:
1. Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s
• INCOME
PROOF FOR SALARIED APPLICANT/ CO-APPLICANT/
GUARANTOR:
1. Salary Slip or Salary Certificate of last 3 months

2. Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT
Dept.
• INCOME
PROOF FOR NON-SALARIED APPLICANT/ CO-APPLICANT/
GUARANTOR:
1. Business address proof
2. IT returns for last 3 years
3. Balance Sheet & Profit & loss A/c for last 3 years
4. Business License Details (or equivalent)
5. TDS Certificate (Form 16A, if applicable)
6. Certificate of qualification (for C.A./ Doctor and other professionals)
• DOCUMENTS FROM THE OTHER BANK:

1. List of original documents held at Bank
2. Loan a/c statement for the past one year
3. Sanction Letter
4. Interim Period Security
3) SBI NRI HOME LOAN
SBI NRI Home Loans allows Non-Resident Indians to get closer to home. SBI NRI Home Loan allows
many NRIs (Non-Resident Indians) to get home loans when investing in properties. Financially, it makes
sense to purchase a property through home loan rather than through personal financing especially when
you can invest your personal funds somewhere else for better returns.
Page | 29
FEATURES
• • Low Interest Rates
• • Low Processing Fee
• • No Hidden Charges
• • No Pre-Payment Penalty
• • Interest charges on Daily Reducing Balance
• • Repayment up to 30 years
• • Home Loan Available as Overdraft
• • Interest Concession for Women Borrowers
ELIGIBILITY
• • Resident Type: Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs)
• • Loan Tenure: up to 30 years
• 1. Zero Processing Fees upto 31st March 2019
FEES
• PROCESSING FEE*
• PRE-SANCTION**
1. Advocate's fee for property search and the title investigation report.
• POST-SANCTION**

5 Lakh.
Page | 30
2. Attested copy of valid Passport and visa.
3. Address proof mentioning the current overseas address
Page | 30
4. Copy of Continuous Discharge Certificate (CDC)-for applicants employed in the merchant navy.
5. PIO Card issued by Government of India. (in case of PIOs)
6. The attestation of documents may be done by FOs/Rep. Offices or Indian Embassy/Consulate or
Overseas Notary Public or officials of Branch/Sourcing outfits based in India.
7. Loan Application: Completed loan application form duly filled with 3 Passport size photographs
9. Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/
Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card
1. Permission for construction (where applicable)

2. Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
3. Occupancy Certificate (in case of ready to move property)
4. Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, property tax receipt
5. Approved Plan copy (Xerox Blueprint) & Registered Development agreement of the builder,
Conveyance Deed (For New Property)
6. Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller
1. Bank account details for the previous 6 months overseas account showing salary and savings and Indian
account if any.
2. If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
3. Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:

4. Valid work permit
5. Employment contract - an English translation duly attested by employer/ consulate / our foreign office /
Embassy in case it is in any other language
Page | 31
6. Last three months’ salary certificate/slip
7. Last six months’ Bank Statement showing salary credit
8. Latest salary certificate /slip in original and copy of identity card issued by the current employer
9. Duly acknowledged copy of last year Individual Tax Return except for NRIs/PIOs located in Middle
East countries and employees in the Merchant Navy.
• INCOME
PROOF FOR NON-SALARIED APPLICANT/ CO-APPLICANT/
GUARANTOR:

2. Proof of income in case of self-employed professionals/businessmen.
3. Last 2 years Audited/C.A. certified Balance Sheet and P&L accounts,
4. Last 2 years Individual Tax Return except for NRI/PIO located in Middle east countries
5. Last six months’ Bank Statement of overseas account in the name of individual as well as company/unit.
4) SBI FLEXIPAY HOME LOAN
SBI Flexipay Home loan provides an eligibility for a higher loan amount exclusively for the salaried
borrowers. It offers customer the option to pay only interest during the moratorium (pre-EMI) period, and
thereafter, pay moderated EMIs. The EMIs will be stepped-up during the subsequent years. This variant of
SBI home loan is very useful for young earners. The SBI Flexipay home loan has the potential to lure a
large section of home loan buyer towards SBI.
FEATURES
• • 20% higher home loan eligibility
ELIGIBILITY
• • Resident Type: Resident Indian
• • Maximum Age: 45 years, to apply for loan, and upto age of 70 years for repayment
• • Loan Tenure: up to 30 years.
Page | 32
Page | 32
•
INTEREST RATES
FEES
• PROCESSING FEE*
• PRE-SANCTION**
• POST-SANCTION**
5 Lakh.

2. Loan Application: Completed loan application form duly filled with 3 Passport size photographs
Page | 33
• INCOME
GUARANTOR:
Dept. 5) SBI PRIVILEGE HOME LOAN
Page | 33
Home Loan designed especially for Government Employees. SBI has launched SBI Privilege Home Loan
exclusively for government employees. Individuals who are employees of Central or State Government
which includes PSBs, PSUs of Central Government and other individuals with pensionable service are
eligible to apply for this home loan. The loan amount will be determined by taking into consideration
factors such as applicant income and repaying capacity, age, assets and liabilities, cost of proposed
house/flat etc.
FEATURES
• • Zero Processing Fee
• • No Pre Payment Penalty
Page | 34
• • Interest Concession in case Check Off is provided
ELIGIBILITY
INTEREST RATES
FEES
• • PROCESSING FEE
• 1. Zero Processing Fees 1. Advocate's fee for property search and title investigation report.
Page | 34
• 2. Valuer's fee for valuation report.
•
• POST-SANCTION**
5 Lakh.

2. Loan Application: Completed loan application form duly filled in and affixed with 3 Passport size
photographs
Page | 35
• INCOME PROOF FOR SALARIED APPLICANT/ CO-APPLICANT/
GUARANTOR:
Dept.
Page | 36
• INCOME PROOF FOR NON-SALARIED CO-APPLICANT/ GUARANTOR:

4. Business License Details(or equivalent)
6. Certificate of qualification (for C.A./ Doctor and other professionals) 6) SBI SHAURYA HOME
LOAN
You serve the nation, give us an opportunity to serve you. SBI Shaurya Home Loan scheme is dedicated to
the Army and Defence Personnel of the nation. This special home loan scheme will be only provided to the
defence employees. The SBI Shaurya Home loans will have lower interest rates and other added benefits
which will only be provided to the defence employee applicants. Apart from reduced interest rates in the
home loan, the defence employees will also have the ease of repayment options and may get longer
repayment period of the loaned amount.
FEATURES
• • Zero Processing Fee
Page | 36
• • Interest Concession in case Check Off is provided
ELIGIBILITY
Page | 37
INTEREST RATES
FEES
• • PROCESSING FEE
• 1. Zero Processing Fees upto 31st March 2019 1. Advocate's fee for property search and title
investigation report.
• 2. Valuer's fee for valuation report.
•
• PRE-SANCTION**
• POST-SANCTION**
5 Lakh.

Page | 37
photographs
3. Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card.
Page | 38
• INCOME
GUARANTOR:
Dept.

6. Certificate of qualification (for C.A./ Doctor and other professionals) 7) SBI PRE-APPROVED
HOME LOAN
The SBI Pre-approved loan (PAL) provides sanction of Home Loan limits to the customers before
finalization of the property which enables them to negotiate with the Builder/Seller confidently. The loan
eligibility will be assessed based on income details of the applicant. Page | 39
Non- refundable processing fee as applicable to the Home Loan will be collected at the time of sanction.
FEATURES
Page | 38
ELIGIBILITY
• • Loan Tenure: up to 30 years
INTEREST RATES Page | 40
• 1. 0.35% of the loan amount.

• 2. Minimum: Rs. 2,000/-
• 3. Maximum: Rs. 10,000/-
•
FEES
• PROCESSING FEE*
• PRE-SANCTION**
• POST-SANCTION**
5 Lakh.

photographs
Page | 39
• INCOME
GUARANTOR:
Dept.
Page | 41

6. Certificate of qualification (for C.A./ Doctor and other professionals) 8) SBI REALTY HOME
LOAN
SBI Realty provides an opportunity to the customer to purchase a plot for construction of a dwelling unit.
The construction of the house should take place within 5 years from date the loan has been sanctioned. The
customer can also avail another Home Loan for construction of house on plot financed under SBI Realty.
The maximum amount of loan that can be offered to a customer can range upto Rs. 15 crores with a
comfortable repayment of 10 years.
FEATURES
ELIGIBILITY
Page | 42
Page | 40
INTEREST RATES

• 2. Minimum: Rs. 2,000/-
•
FEES
• PROCESSING FEE*
• PRE-SANCTION**
• POST-SANCTION**
5 Lakh.

2. Completed loan application
3. 3 Passport size photographs
Page | 43
4. Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
5. Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/Property tax receipt/
Passport/ Voters ID card)
6. Proof of business address for non-salaried individuals
7. Statement of Bank Account/ Pass Book for last six months
8. Signature identification from present bankers
9. Personal Assets and Liabilities statement
• FOR GUARANTOR (WHEREVER APPLICABLE):
Page | 41
1. Personal Assets and Liabilities Statement
2. 2 passport size photographs
3. Proof of identification as above
4. Proof of residence as above
5. Proof of business address as above
6. Signature identification from his/her present bankers
• ADDITIONAL DOCUMENTS REQUIRED FOR SALARIED PERSONS:

1. Original Salary Certificate from employer
2. TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT
Deptt.
• ADDITIONAL DOCUMENTS REQUIRED FOR PROFESSIONALS/ SELF-

EMPLOYED/ OTHER IT ASSESSES:
1. Acknowledged copies of three years I.T. returns/ Assessment Orders.
2. Photocopies of challans evidencing payment of Advance Income Tax 9) SBI HOME TOP UP
LOAN
SBI offers "SBI Home Top Up Loan" to their customer to borrow certain amount over and above their
home loan amount. The customer who already have a home loan from SBI and requires more funding, can
opt for Home Top up loans. It can be availed for any personal purpose. The interest rates are much lower
than usual personal loan interest rates. Page | 44
FEATURES
ELIGIBILITY
• • Resident Type: Resident Indian & NRI
INTEREST RATES
Page | 42
•
FEES
• PROCESSING FEE*
*Plus applicable taxes Page | 45
• PRE-SANCTION**
• POST-SANCTION**
3. CERSAI Registration Fee of Rs 50 + GST up to Rs 5 Lakh limit; and Rs 100 + GST for limits above
Rs 5 Lakh.

2. Completed loan application
3. 3 Passport size photographs
4. Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/ IT PAN card)
5. Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/Property tax receipt/
Passport/ Voters ID card)
6. Proof of business address for non-salaried individuals
7. Statement of Bank Account/ Pass Book for last six months
8. Signature identification from present bankers
9. Personal Assets and Liabilities statement
• FOR GUARANTOR (WHEREVER APPLICABLE):

1. Personal Assets and Liabilities Statement
2. 2 passport size photographs
3. Proof of identification as above
4. Proof of residence as above
Page | 43
5. Proof of business address as above
6. Signature identification from his/her present bankers
• ADDITIONAL DOCUMENTS REQUIRED FOR SALARIED PERSONS:

1. Original Salary Certificate from employer
2. TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by
IT Dept.
Page | 46
• ADDITIONAL DOCUMENTS REQUIRED FOR PROFESSIONALS /SELF-

EMPLOYED/ OTHER IT ASSESSES:
1. Acknowledged copies of three years I.T. returns/ Assessment Orders.
2. Photocopies of challans evidencing payment of Advance Income Tax 10) SBI BRIDGE HOME
LOAN
Helps to upgrade your home. SBI offers "SBI Bridge Home Loan" for all the home owners who aspire to
upgrade their homes- to bigger homes or better locations, by selling off their existing homes. Many a
times, such customers face short term liquidity mismatch on account of time lag between sale of existing
property and purchase of new property. SBI Bridge Home Loan will help to mitigate this shortfall of
funds, and customers can avoid distressed sale of their existing homes.
FEATURES
• • Low Interest Rates.
• • Low Processing Fee.
• • No Hidden Charges.
• • No Pre-Payment Penalty.
• • Interest charges on Daily Reducing Balance.
• • Repayment up to 2 years.
ELIGIBILITY
• • Resident type: Resident Indian
• • Loan Amount: Minimum Rs. 20 lakhs and Maximum Rs. 2 crores
Page | 47
INTEREST RATES
Page | 44
• 2. Minimum: Rs. 2,000/- 3. Maximum: Rs. 10,000/-
•
FEES
• PROCESSING FEE*
• PRE-SANCTION**
1. Advocate's fee for property search and the title investigation report.
• POST-SANCTION**
5 Lakh.

photographs
Page | 48
• INCOME
GUARANTOR:
Page | 45
Dept.

6. Certificate of qualification (for C.A./ Doctor and other professionals) 11) SBI SMART HOME
TOP UP LOAN
SBI Smart Home Top up loan is a general purpose loan offered to meet your urgent requirements for any
personal purposes such as meeting expenditure on education, marriage, health care,
repair/renovation/furnishing of the house, etc. The best part is you simply need to walk into the nearest
branch/ RACPC to avail the Loan Page | 49
FEATURES
• • No documents required
• • Quick Processing
• • Available as Overdraft also
ELIGIBILITY
• • Resident Type: Resident Indian & NRI
• • Loan Amount: upto Rs. 5 lakhs
• • CIBIL Score of 550 or higher
• • Satisfactory repayment track record of 1 one year or more, after completion of moratorium
• • No other Home Top-up or Insta Home Top-up loans should be active I
INTEREST RATES
Page | 46
ICICI BANK
MORTGAGE LOAN OPTIONS
HOME LOAN
We offer a host of Home Loan options that can be tailor made to suite individual needs. With advantages
like simplified documentation, usage of tablet and smartphones, getting a home loan sanctioned has
become very easy.
ADVANTAGES
• • Attractive floating and fixed interest rates options
• • Higher Loan Eligibility
• • Longer tenure and lower EMI
• • Loan sanction possible before selecting the property
• • Doorstep service
• • Simplified documentation
ICICI BANK EXTRAA HOME LOANS

ICICI Bank Extraa Home Loans allow you to enhance your loan amount by up to 20% and also provide
you an option to extend the repayment period up to 67 years of age. This facility Page | 64
provides the dual advantage of improved affordability and a longer repayment period
The enhancement in loan/repayment period is backed by Mortgage Guarantee.
The facility is currently offered in Greater Mumbai, National Capital Region, Bengaluru and Surat. ICICI
Bank Extraa Home Loans is available in three variants designed to address the needs of a wide range of
customers:
• a. FOR MIDDLE AGE, SALARIED CUSTOMERS:
Suitable for salaried borrowers up to 48 years of age. While with regular home loan, you get a repayment
schedule until the age of retirement, with this facility you may now extend the loan tenure up to 65 years of
age.
ILLUSTRATION
Mr. Raj Mehta, aged 47 years, aspires to buy a 2 BHK house worth Rs. 65 lakh. Mr Mehta has a family
with two children, lives in Mumbai and has a monthly gross Income of Rs. 75,000.
He has accumulated Rs. 21 lakh for his own contribution. When he applies for a home loan, bank sanctions
a loan of only Rs. 39 lakh with an EMI of Rs. 45,000 and 13-year tenure till 60 years of age. He faces a
gap of Rs. 5 lakh to buy his dream house!
WITH EXTRAA HOME LOANS
• • He gets a higher loan of Rs. 45.5 lakh (increase of 17%) with the same EMI
• • Longer repayment tenure of 18 years till 65 years
• • He pays a guarantee fee of Rs. 70,000
Page | 47
Mr. Mehta is now a relieved man and, on his way, to buy his dream home.
• b. SELF EMPLOYED CUSTOMERS:
Suitable for self-employed customers who earn higher income in some months of the year, given the
seasonality of the business they are in.
ILLUSTRATION
Mr. Ajay Sharma, aged 44 years, is a synthetic garment trader in Surat and aspires to buy a 3 BHK house
worth Rs. 74 lakhs. Mr. Sharma earns Rs. 80,000 on an average per month with his seasonal business. He
stays with his family of two growing sons and a wife. He has accumulated Rs. 17 lakhs for his own
contribution. When he applies for a home loan, the bank sanctions a loan of only Rs. 47.5 lakh with an
EMI of Rs. 52,000 and seasonality of his business is Page | 65
considered. He faces a gap of Rs. 9.5 lakh to buy his dream house!
• • Gets a loan of Rs. 57 lakh approved at a guarantee fee of Rs. 1.2 lakh
• • He is able to increase his eligibility by 20%
He is ecstatic and satisfied that his dream is finally coming to life.

• c. FOR YOUNG, SALARIED CUSTOMERS:
The salaried borrowers up to 37 years of age are eligible to avail a 30-year home loan with repayment
tenure till 67 years of age.
ILLUSTRATION
Ms. Sneha Gupta is 37 years old and aspires to buy an apartment worth Rs. 35 lakh in Bangalore. She earns
Rs. 40,000 per month and stays with her husband.
She saves Rs. 8 lakh using up all her resources of Employee Provident Fund and a loan from the family for
her own contribution. When she applies for a home loan, the bank sanctions only Rs. 26 lakh with an EMI
of Rs. 24,000 and a 23-year tenure till 60 years of age. She faces a gap of Rs. 1 lakh to buy her dream
house!
• • She gets an extended tenure of 30 years, which she can now pay till the age of 67 years
• • EMI remains the same
• • Loan increases to Rs. 27.7 lakh at a guarantee fee of Rs. 58,414
She is now dreaming of her new life in her own home.

ICICI Bank Extraa Home Loans are offered in association with Indian Mortgage Guarantee Corporation
(IMGC), a joint venture between National Housing Bank, Genworth Financial Inc., Asian Development
Bank and International Finance Corporation.
PRADHAN MANTRI AWAS YOJANA (PMAY) - CREDIT LINKED SUBSIDY
SCHEME (CLSS)
The "Credit Linked Subsidy Scheme” (CLSS) under Pradhan Mantri Awas Yojana (PMAY) was
announced by our Honourable Prime Minister Shri Narendra Modi. The scheme envisages the vision of
housing for all by the year 2022. ICICI Bank offers "Credit Linked Subsidy Scheme" under Pradhan
Mantri Awas Yojana. Under this scheme, interest subsidy on purchase/ construction/ extension/
improvement of house is provided to customers belonging to Page | 66
Economical Weaker Section (EWS)/Lower Income Group (LIG)/Middle Income Group (MIG).
PRADHAN MANTRI AWAS YOJANA ELIGIBILITY
• • The beneficiary family should not have received central assistance under the Mission “Housing
for all by 2022”.
Page | 48
BENEFICIARIES
• • The scheme is offered to families, comprising of husband, wife and unmarried children. (An adult
earning member irrespective of marital status can be treated as a separate household in MIG category)
• • The family should not own a pucca house in his/ her name or in the name of any member of the
family, in any part of India
FEATURES
• • Upfront interest subsidy benefit on principal outstanding
• • Aadhaar number(s) of the beneficiary family are mandatory for MIG category
• • Interest subsidy will be available for a maximum loan tenure of 20 years or the loan tenure
availed by the borrower whichever is lower
• • There is no cap on the loan amount or on the cost of property.
• • The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%.
• • The additional loan beyond the specified limits, if any to be at non-subsidized rate.
The House constructed/acquired should be in the name of female head of the household or in the joint
names of male head of the household and his wife. Only in cases, where there is no adult female member
in the family, the house can be in the name of male member of the household. However this stipulation is
applicable only for new purchases and not for new construction (on an existing piece of land) or for
enhancement/repairs of an existing house.
PROCESS TO AVAIL SUBSIDY

If you are eligible for PMAY subsidy benefit and have not availed the same while taking Home Loan from
us, you can submit your request. The bank will review your request for subsidy claim and will submit the
claim to National Housing Bank.
• • Aadhaar is mandatory to avail subsidy, hence carry original Aadhaar card of all family members.
• • Subsidy is subject to approval and clearance from National Housing Bank.
ICICI BANK STEP UP HOME LOANS

With ICICI Bank Step Up Home Loans you now have the key to your dream home early in life. A product
for the young salaried professional, under ICICI Bank Step Up Home Loan you can avail of a higher loan
amount as compared to your loan eligibility under normal Home Loans.
What’s more, in the initial years you pay moderate EMIs, which will further step up during the subsequent
years considering your income.
FEATURES
• • Enhanced eligibility up to 20%
• • Loan amount up to Rs. 3 Crore
• • Minimum income of Rs.20, 000 per month
• • Loan tenure up to 20 years
MORTGAGE LOAN OPTIONS HOME LOAN

We offer a host of Home Loan options that can be tailor made to suite individual needs. With advantages
like simplified documentation, usage of tablet and smartphones, getting a home loan sanctioned has
become very easy.
ADVANTAGES
Page | 49
• • Attractive floating and fixed interest rates options
• • Higher Loan Eligibility
• • Longer tenure and lower EMI
• • Loan sanction possible before selecting the property
Page | 68
• • Doorstep service
TOP UP LOAN ON YOUR HOME LOAN

You can Top-Up on your existing Home Loan and use the funds to fulfill a host of requirements such as
home renovation, marriage expenses, business expansion, funding of your child’s higher education or any
other personal needs. What’s more, if you have an existing Home Loan with us, applying for a Top-Up
loan gets simpler, hassle- free and with minimal documentation.
OUR TOP-UP LOAN OFFERS YOU A HOST OF BENEFITS:
• • Attractive interest rate
• • Low EMI
• • Tenure up to 20 years
• • Quick Processing
30 YEAR HOME LOAN

Now add wings to your imagination and get your dream home with ICICI Bank 30 - year Home Loans.
With a longer repayment tenure, you can avail higher loan amount and still keep your EMIs small.
• • Higher loan amount
• • Doorstep Service
30 year Home loans are available for women borrower and for applicants working for select group of
companies
AXIS BANK HOME LOANS
Our affordable and flexible home loans are designed to take you closer to your dream home. Our Home
Loan affordability calculator is based on your requirements, such as tenure, loan amount and interest rates
to give you an estimate of your EMI. Explore our wide range of products for the most competitive Home
Loan interest rates, extended loan tenures and other benefits like EMIs waivers. Page | 69
AXIS BANK HOME LOAN

Fulfil your dream of owning a home with the Axis Bank Home Loan which offers home loans starting at
Rs. 300,000. The Axis Bank Home Loan comes with a host of benefits such as smaller EMIs where you
can space out your payment over a longer tenure, attractive interest rates, an easy application process,
doorstep service, etc
• Smaller EMIs
• • Minimum Loan Amount Rs. 3 Lakhs
• • No Pre-Payment Charges
Page | 50
• • Floating & Fixed Interest Rates
Axis Bank Home Loans offer a host of benefits to help you fulfil your dream of owning a home. Find out
about the eligibility criteria for the Axis Bank Home Loan below:
SALARIED INDIVIDUALS ELIGIBLE FOR HOME LOAN
• • Individuals in permanent service in the Government or reputed companies fall under the home
loan eligibility criteria.
• • Applicants should be above 21 years of age at the time of loan commencement and up to the age
of 60 or superannuation, whichever is earlier at the time of loan maturity. You can check the amount you
need to pay as EMI with the Home Loan EMI Calculator.
PROFESSIONALS ELIGIBLE FOR HOME LOAN

• • Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost
accountants, company secretary, and management consultants only) meet the Axis Bank Home Loan
eligibility criteria.
• • Applicants above 21 years of age at the time of home loan commencement and up to 65 years or
less at the time of home loan maturity meet our home loan eligibility criteria.
SELF-EMPLOYED INDIVIDUALS ELIGIBLE FOR HOME LOAN

Any individual filing income tax returns can apply. Applicants should be above 21 years of age at the time
of the commencement of the home loan and up to 65 years or less at the time of maturity of the home loan
HOME LOAN BORROWING LIMITS
Minimum - Rs. 3 lakhs Page | 70
MARGINS
For home loan upto Rs. 30 Lakhs - 10%
For home loan above Rs. 30 Lakhs upto Rs. 75 Lakhs - 20%
For loan above Rs. 75 Lakhs - 25%
Submit the documents listed below and get a Home Loan / Loan
Against Property sanctioned in 5 days!
PROOF OF IDENTITY ANY ONE OF THE FOLLOWING
1. Passport 2. PAN Card 3. Aadhar Card
4. Voter ID 5. GOI Issued Photo Id 6. Government Employee ID
7. Driving License
Page | 51
PROOF OF ADDRESS ANY ONE OF THE FOLLOWING
1. Aadhar Card 2. Driving License 3. Voter ID
4. GOI issued Photo ID 5. Government Employee ID 6. Electricity Bill
7. Gas Bill 8. Telephone Bill (Landline) 9. Property Tax Receipt
DATE OF BIRTH PROOF ANY ONE OF THE FOLLOWING
1. Passport 2. PAN Card 3. Aadhar Card with

DOB
4. Driving License 5. Birth Certificate 6. SSC Marksheet
SIGNATURE PROOF ANY ONE OF THE FOLLOWING
1. Passport 2. PAN Card 3. Banker’s Verification
4. Notarized affidavit with ID & Address proof (not applicable for financial applicant)
PROOF OF INCOME ANY ONE OF THE FOLLOWING
SALARIED SELF EMPLOYED
Page | 52
3 months pay slip 2 years ITR, Computation of Income, P&L,
6 months pay slip/2 years bonus proof (in Balance sheet with CA seal and sign.
case of variable pay) For Asha HL - 1 years ITR, Computation of
6 months bank statement showing salary Income, P& Balance sheet with CA seal
credits and sign
2 years Form 16 (or employment continuity Tax Audit Report (If Gross Turnover
proof) Exceeds Rs 1 Cr Receipts Exceeds 25 Lac)
6months bank statements of personal and
business accounts
FOR NRI SALARIED If ITR is filed without digital sign - CPC
3 months pay slip and tax paid challan
Appointment letter/contract letter Business continuity proof (3 years for HL /
Continuous Discharge Certificate for 5 years for LA
Shipping cases
6 months Domestic NRE/NRO A/c
statement
6 months International salary A/c statement
Overseas Credit Report
Valid visa copy/OCI card
Passport copy
POA details
FOR BALANCE TRANSFER / TAKEOVER OF LOAN FROM OTHER BANK /

FINANCIAL INSTITUTION
12 months loan account statement with latest outstanding letter.

Existing loan details and 6 months bank statement from where EMI is deducted
LEASE RENTAL DISCOUNTING
6 months bank statement where rent is credited Registered valid lease agreements
2 years ITR, Computation of Income, P&L, Balance sheet with CA seal and sign 1 year 26 AS
IF PARTNERSHIP FIRM:
Partnership deed, 2 years audited financials, operative account, KYC, partnership authority letter.
FOR APPLICANTS WHO ARE PARTNERS IN A FIRM / DIRECTORS IN A

COMPANY
PARTNER / PARTNERSHIP FIRM DIRECTOR OF A COMPANY
Page | 53
Partnership Deed, List of Partners, NOC as FOR THE COMPANY:
per Axis Bank format 2 years ITR, Computation of Income, P&L,
Partnership firm's audited ITR along with Balance sheet with CA seal and sign.
complete financials Tax Audit Report (Where Gross Turnover
Partnership authority letter on letterhead of Exceeds Rs 1 Cr or Gross Receipts exceeds
the Firm signed by all partners in case Firm 25 Lac)
to stand as guarantor Board Resolution (if Company is applicant)
as per Axis bank format
Certificate of Incorporation, MOA and
AOA DIN of all Directors, Board
Resolution if Company (as per Axis bank
format)
Latest Share Holding Pattern duly signed
by Company secretary/List of Directors
OTHER IMPORTANT DOCUMENTS AND CHECKS

Completely filled and duly signed application form along with all applicants latest passport size
photo Aadhar card is mandatory for Credit Linked Subsidy Scheme (PMAY) applicants
PAN card is mandatory for all financial applicants Processing Fee and CERSAI cheques
Self-attestation of borrowers on all documents submitted
PROFESSIONALS ELIGIBLE FOR HOME LOAN
• Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost

accountants, company secretary, and management consultants only) meet the Axis Bank Home
Loan eligibility criteria.
• Applicants above 21 years of age at the time of home loan commencement and up to 65 years or
less at the time of home loan maturity meet our home loan eligibility criteria.
Page | 54
Any individual filing income tax returns can apply. Applicants should be above 21 years of age at
the time of the commencement of the home loan and up to 65 years or less at the time of maturity
of the home loan. With interest rates starting from 9.45%, you can now fulfil your dream of
buying your own home. Find out the interest rates on the Empower Home Loan below
EFFECTIVE
LOAN MCLR + RATE OF
SR.NO AMOUNT MARK UP INTEREST
1 All loan MCLR + 9.55%

amounts 0.75%
Marginal Cost Based Lending Rate (MCLR) - 8.80%

MCLR Reset frequency for Home Loans – Half Yearly
Base Rate - 9.50%
MRR - 14.25%
BPLR - 17.25%
Customers who have availed disbursement or received a sanction prior to March 31, 2016
will continue to operate on base rate. Existing customers can get in touch with our
customer care, if they wish to switch to MCLR.
Page | 55
ASHA HOME LOAN CHARGES
The Asha Home Loan offers a loan amount up to Rs. 28 Lakh. The
nominal charges associated with Asha Home Loan are given below
DESCRIPTION OF CHARGES AMOUNTS (RS.)

Processing Fee Charges Up to 1% of the Loan amount subject to
minimum of Rs.10,000/-
Upfront processing fee of Rs 2500 plus
GST shall be collected at the time of
application login. This fee will not be
refunded under any circumstances such
as loan rejection/withdrwal of the loan
application etc., non disbursement of
loan for the reasons solely attributable to
the customer. Balance processing fee as
applicable shall be collected at the time
of loan disbursement.
Penal Interest Rate @24 % per annum, 2% per month
Switching Fees (Base Rate/BPLR to When effective rate is to be kept the
MCLR)# same - No fees
When effective rate is to be revised –
0.5% on outstanding principal with
minimum of Rs. 10,000
Switching Fees (Floating Rate to Fixed 1% on the outstanding principal with a
Rate) minimum of 10,000/-
Switching Fees (Fixed Rate to Floating 2% on the outstanding principal amount
Rate)
Switching Fees (Higher Floating Rate to 0.5% on outstanding principal with
Lower Floating Rate) minimum of 10,000/-The lower rate will
be equal to the applicable carded interest
rate only
Repayment Instruction/Cheque Rs. 500/- Per Instance
Return charges
Cheque/Instrument Swap Charges Rs. 500/- Per Instance
Duplicate Statement Issuance Charges Rs. 250/- Per Instance
Page | 56
Duplicate Amortization Rs. 250/- Per Instance
Schedule Issuance Charges
Duplicate Interest Certificate Rs. 250/- Per Instance
(Provisional/Actual) Issuance Charges
Issuance Charges of Credit Rs. 50/- Per Instance
Report
Issuance Charges for Rs. 250/- Per Instance document set
Photocopy of title documents
Any individual filing income tax returns can apply. Applicants

should be above 21 years of age at the time of the commencement of
the home loan and up to 65 years or less at the time of maturity of
the home loan. With interest rates starting from 9.45%, you can now
fulfil your dream of buying your own home. Find out the interest
rates on the Empower Home Loan below
SR.NO LOAN MCLR + EFFECTIVE

AMOUNT MARK UP RATE OF
INTEREST
1 All loan MCLR + 9.55%

amounts 0.75%
Marginal Cost Based Lending Rate (MCLR) - 8.80%

MCLR Reset frequency for Home Loans – Half Yearly
Base Rate - 9.50%
MRR - 14.25%
BPLR - 17.25%
Customers who have availed disbursement or received a sanction prior to March 31, 2016
will continue to operate on base rate. Existing customers can get in touch with our
customer care, if they wish to switch to MCLR
CRITERIA EWS-LIG MIG-I
Maximum Household Up to Rs. 6 Lakhs Rs. 6 - Rs. 12 Lakhs

income per annum
Maximum Property Area No restriction 160 sq.m.
(carpet area)
Maximum loan amount Rs. 6 Lakhs Rs. 9 Lakhs
for subsidy calculation
Page | 57
Maximum tenure for subsidy calculation 20 years
Interest Subsidy (% p.a.) 6.50% 4%
Subsidy amount Rs. 2.67 Lakhs Rs. 2.35 Lakhs
Women ownership on Yes Not applicable
property
The beneficiary family Applicable Applicable
should not own a pucca
house in India
Housing loan sanction After 17.06.2015 After 01.01.2017
date to be eligible for
subsidy
PRADHAN MANTRI AWAS YOJNA
Pradhan Mantri Awas Yojana (Urban) provides interest

subsidy on housing loans to eligible beneficiaries belonging
to the EWS, LIG and MIG segment for construction or
purchase of homes. Pradhan Mantri Awas Yojna Credit
linked subsidy scheme under the Pradhan Mantri Awaas
Yojana (Urban) provides interest subsidy on home loans to
eligible beneficiaries belonging to the EWS, LIG & MIG
segment. Axis Bank is glad to partner with the Government
of India in offering this scheme to eligible home loan
customers. The subsidy can be availed for construction or
purchase of homes.
Page | 58
CHAPTER 4
LITERATURE REVIEW
Anju Otwani conducted a study where she says, shelter is a basic human need and productive
investment. Home loan means a sum of money borrowed from a financial Institution or Bank to
purchase a house. Home loan consists of an adjustable or fixed rate payment terms. As most of the
people don’t have the cash funds to pay for a home, outright they can apply for a home loan which will
pay the upfront costs for the home also which will have to be paid back monthly over a specified period
of time. Without home loans most of the people could not afford to buy a home. According to National
Association of Home Builders, the housing industry as a whole contributes about 17% to 18% of the
nation’s GDP. The most common purpose of a home loan is to provide funds to a buyer who needs to
purchase a home. Home Equity loans allow a home owner to borrow against the difference between the
home’s value and the current loan balance. (Anju Otwani, 2017).
Dr. Amit S. Nanwani in his paper has considered, Every citizen of the country dreams of having his
own house. Home is a basic need of a human being; it is an important facet of economic development.
The dream home is not very far away with home loan, which will fulfil the dream into reality. The
demand for home loans has increased manifold in the last decade. There are number of housing finance
companies and banks offering cheap home loans at a low interest rate. The home loan schemes offered
by both public and private sector banks are very competitive. Our study aimed at comparative analysis
of home loans schemes offered by public sector and private sector banks in Nagpur. The paper also
examined the satisfaction level and problems faced by customers while availing home loan. For this
purpose we have taken four commercial banks in Nagpur city namely SBI, BOI, HDFC Bank and ICICI
Bank. It includes two public sector banks and two private sector banks. In the research methodology a
sample size of 200 respondents has been taken through random sampling. For the study we have
collected both primary data as well as secondary data.
Finally the whole research was carried out in a systematic way to reach at exact result. The whole
research and findings were based on the objectives. (Dr. Amit S. Nanwani, 2016)
Vandell, Kerry D analyses the sharp rise and then suddenly drop down home prices from the period
1998- 2008. Changes in prices are for the reasons as such economic fundamentals, the problem was not
subprime lending per se, but the dramatic reductions and subsequent increases in interest rates during
the early- mid-2000.
Page | 59
The housing loan boom was concentrated in those markets with significant supply-side
restrictions, which tend to be more price-volatile. The problem was not in the excess supply of
credit in aggregate, or the increase in subprime per se, but rather in the increased or reduced
presence of certain other mortgage products. (Vandell, Kerry D, 2008) La courr, Micheal
analyses in his study, the factors that affect the increase in the level of Annual percentage rates
(APR) spread reporting during 2005 over 2004.The three main factors are (1) changes in lender
business practices; (2) changes in the risk profile of borrowers; and (3) changes in the yield
curve environment. The result shows that after controlling the mix of loan types, credit risk
factors, and the yield curve, there was no statistically significant increase in the reportable
volume for loans originated directly by lenders during 2005. (La courr, Micheal, 2007)
La cour Micheal examined the home purchase mortgage product preferences of LMI
households. Objectives of his study were to analysis the factors that determined their choice of
mortgage product. The role pricing and product substitution play in this segment of the market
and to verify whether results vary when loans are originated through mortgage brokers. In this
case regression analysis has been used and results have shown that high interest risk reduces
loan value. (La courr, Micheal, 2006)
Dr. Rangarajan C. said that the financial system of India built a vast network of financial
institutions and markets over times and the sector is dominated by banking sector which
accounts for about two-third of the assets of organized financial sector. DePaul Singh (2001) in
his study entitled consumer Behavior and Bank Retail products an Analysis “Stresses that the
borrower’s attitude is an important factor for the improvement of housing loan schemes.
R.R.Krishna and V.S.Krishna Mouthy (1999) stress in their article entitled “Trend and policy
Issues of Housing finance in India”, that simplified procedures and speedy sanction of housing
loans will give a boost to the constructing houses. (Dr. Rangarajan C., 2001)
Sangwan and Bhan this study can find out the satisfaction level of customers and problems
faced by them in obtaining home loans. For this purpose, we have taken four commercial Banks
in Chandigarh city namely H.D.F.C. Bank, Punjab National Bank (P.N.B.), Union Bank of India
and Industrial Credit and Infrastructure Corporation of India (I.C.I.C.I) Bank. It includes two
public sector banks and two private sector banks. In the research methodology a sample size of
200 respondents has been taken through random sampling.
They have taken both primary data as well as secondary data, in the primary data questionnaire
has been used to check the satisfaction level of customers about home loans. In the secondary
Page | 60
data, the annual reports of RBI, commercial banks and broachers of these banks have been studied.
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.
Some of the limitations faced in collecting the data were Lack of time, lack of data, non-
response, reluctant attitude and illiteracy of respondents, which posed problems in carrying out
the research. (Sangwan and Bhan, 2012). Gupta and Agarwal this is a comparative study in
Meerut city, India, to evaluate service quality and resultant customer satisfaction in private
banks as compare to public sector ones. (Gupta and Agarwal , 2013)
Rao this study discussed about the perception and problems of home loan takers in Andhra
Pradesh. The author has focused on research by taking into account H.D.F.C. and S.B.I. bank.
The paper discussed about the Housing Policy frame work, trends and progress in Housing
Finance, the operational performance of H.D.F.C. and S.B.I. with regard to providing housing
finance to individuals, perception and problems of home loan takers in the State of Andhra
Pradesh. The author concluded by stating that the Housing Finance in India faced a number of
set-back in decades but the designing of a shelter policy, the organization of the housing finance
market, the introduction of fiscal incentives have bought about a number of changes in the
housing finance. The services and product innovations are the key tools for success. (Rao, 2013)
Thakur G. this study concluded that people prefer H.D.F.C. bank more than S.B.I. bank for
home loan. As private banks are coming daily in our country still, mostly people refer
government banks for loan especially older persons are more dependent on government banks.
It is true that younger population preference is changing and they prefer more private banks
because of services and facilities provided by private banks. The interest rate is lower in public
(S.B.I.) bank in comparison with private (H.D.F.C.) bank but services are not up to the mark.
(Thakur G., 2014)
Kumara swamy this study discussed about the importance of housing finance and the
institutions providing housing finance. A detailed discussion of the marketing strategies
adopted by financing institutions have been discussed by taking into account the loan criteria
eligibility, loan amount, interest rate, security, loan tenure, margin and processing fee.
Finally the paper highlights the performance of the housing sector, major findings and
suggestions to improve the effective marketing of housing finance for both public and private
sector banks. (Kumara Swamy, 2014)
Sharma and Garg this study concluded that the public sector banks are very popular among the
customer these days because the interest rate is lower in State Bank of India as compare to
H.D.F.C. bank and the trust level that customer have with these banks is very high in
comparison to H.D.F.C. bank. The public sector bank also provide better facilities and services
Page | 61
to the customer and give all the information to the customer time to time through Short Message
Service(SMS) and internet banking.
The information provided by the private banks is sometimes fake and they tried to cheat
customer for their own benefits. (Sharma and Garg, 2014). Gupta and Sinha this examining on
the respondent regarding the purchase of home loan and low rate of interest, easy accessibility,
status/ reputation of the institution and scheme offered by the company are the major factor for
selection of the housing finance institution comparative study on Factor Affecting consumer’s
Buying Behavior towards Home Loan (with special reference to S.B.I. and L.I.C.H.F.L.)” and
found that fixed rate of interest is most preferred option by the customers. (Gupta and Sinha ,
2015)
Chithra and Muthurani this study conducted on customer perception towards home loan in
are done Chennai with the 85 sample size and simple random sampling. The study shows that
H.D.F.C. bank home loans has product portfolio for satisfying different consumer needs. The
bank has got goodwill and this can be used for promoting its services. If new promotional
activity and services introduced, it will help very much to organization to increase the business.
(Chithra and Muthurani, 2015)
Murugan and Jansirani a study carried out in Chennai to Customer perception towards home
loan by selecting the 500 customer on randomly basis. This study made an attempt to evaluate
in depth the performance and operational problems faced by the banking sector in extending
finance to the housing sector and based on findings; identify the areas of concerns and strategic
interventions required. (Murugan and Jansirani, 2017)
Page | 62
NOTE:
• Household definition under EWS-LIG, MIG-I & II schemes: A beneficiary family will comprise of
husband, wife and unmarried children. An adult earning member (irrespective of marital status) can
be treated as a separate household.
• The applicants should have an Aadhaar card copy to be eligible for benefit under MIG scheme.
• EWS/LIG households are defined as households having an annual income of up to Rs. 3 Lakhs /
between Rs. 3 Lakhs to Rs. 6 Lakhs respectively.
DISCLAIMER:
Interest subsidy on housing loan is calculated at applicable rates for PMAY EWG/LIG/MIG I/MIG II
schemes respectively for the tenure of 20 years or the tenure of loan, whichever is lower. The Government
of India (GOI) will retain the supreme right of granting/rejecting the subsidy and bank will not be held
liable for the decisions taken by GOI.
Page | 63
CHAPTER 5
5.1 CONCLUSION
The home loan market in India has grown at a rapid and alarming rate of over 40% over the
period of the last four years. And from the reports from some of the industry experts, it is
evident that there is very little chance that there will be any significant decline in growth rates
in the future. Therefore, it becomes important at this point in time to examine the key factors
that have been instrumental in triggering this high growth period. There are several reasons that
can be considered as having attributed to the growth of the home loan market.
On the demand side, the first and the most important factor for the growth has been faster rise
in incomes as compared to property prices, thus making housing more affordable. Most of the
housing finance companies in India have introduced several new home loan products in order
to meet the needs of a wide variety of customers. The various home loan schemes have their
different interest rates in the market.
The customer can choose those schemes which he feels is good for him and have the capacity
to repay it on that specified time period. If unwavering liability is what suits your profile, then
fixed interest rate home loan should be the natural choice. On the other hand, if you can handle
risks and are willing to go the extra mile to benefit from any further fall in interest rates, floating
rate home loans will be best suited for you.
Page | 64
5.2 DATA ANALYSIS:
Analysis of Bank Loans is divided into 3 parts. They are as
follows-
i Description of demographic profile of Bank Loans.
ii Testing of objectives.
I. DESCRIPTION OF DEMOGRAPHIC PROFILE OF BANK LOANS.
GRAPHICAL REPRESENTATION OF AGE VISE COMPOSITION OF BANK LOANS:
AGE OF RESPONDENTS NO. OF RESONDANTS % OF RESPONDANTS

20-30 62 96.9%
30-40 0 0%
40-50 2 3.1%
AGE
25%, 25%
40.00%, 40%
35%, 35%
20-30 30-40 40-50
INFERENCE: From the above data, 25% respondents are between the age group of 40-50,
40% respondents are between the age group of 20-30 and 35% respondents are from the age
group of 30-40.
Page | 65
GRAPHICAL REPRESENTATION OF GENDERVISE COMPOSITION OF BANK
LOANS:
GENDER OF NO. OF RESPODENTS % OF RESPONDENTS

RESPONDENT
MALE 60 60%
FEMALE 40 40%
GENDER
40%
60%
MALE FEMALE
INFERENCE: From the above data, 60% of respondents are male, 40% of respondents are
female. We come to know that maximum number of home loans are taken by male.
Page | 66
GRAPHICAL REPRESENTATION OF OCCUPATION VISE COMPOSITION OF BANK
LOANS:
OCCUPATION OF NO. OF % OF RESPONDENTS

RESPONDENTS RESPONDENTS
STUDENTS 20 20%
SELF EMPLOYED 50 50%

UNEMPLOYED 10 10%
GOVT EMPLOYED 5 5%
PRIVATE COMPANY 14 14%
EMPLOYED
OTHERS 1 1%
OCCUPATION
1%
14% 20%
5%
10%
50%
students self employed unemployed govt employed pvt company employed others
INFERENCE: From the above given data, 20% people are students, 50% are self
employed, 10% people are unemployed, 5% people are government employed,
14% people are private company employed, 1% people are from other fields.
Page | 67
GRAPHICA REPRESENTATION OF INCOME OF RESPONDENTS:
INCOME LEVEL OF NO. OF RESPONDENTS % OF RESPONDENTS

RESPONDENTS
LESS THAN 1 LAKH 35 35%
1-3 LAKH 15 15%
3-5 LAKH 25
5-10 LAKH 10 10%
GREATER THAN 10 LAKH 15 15%
INCOME (IN LAKHS)
15%
35%
10%
25%
15%
LESS THAN 1 LAKH 1-3 LAKH 3-5 LAKH 5-10 LAKH GREATER THAN 10
INFERENCE: From the above data, 10% people have income between 5-10 lakh, 25% of people
have income between 3-5 lakh, 15% people have income greater than 10 lakh, 35% people have
income less than 10 lakh, 15% people have income between 1-3 lakh.
Page | 68
GRAPHICAL REPRESENTATION OF BANKS WITH WHOME RESPONDENTS ARE
CURRENTLY HAVING AN ACCOUNT:
BANK NO. OF BANK ACCOUNTS % OF

ACCOUNTS RESPONDENTS
HDFC 15 15%
SBI 30 30%
ICICI 10 10%
BOB 20 20%
KOTACK 30 30%
MAHENDRA
BANK
BOI 10 10%
BANK ACCOUNTS
15% 15%
20%
30%
10%
HDFC SBI ICICI BOB KOTAK MAHENDRA BANK BOI
INFERENCE: From the above data, 20% people have bank accounts in Bank Of Baroda, 15% people
have bank accounts in HDFC Bank, 15% people have bank accounts in Kotak Mahendra Bank, 30%
people have accounts in SBI bank, 10% people have bank account in ICICI Bank.
Page | 69
GRAPHYICAL REPRESENTATION OF TYPES OF BANK ACCOUNT:
BANK ACCOUNT NO. OF RESPONDENTS % OF RESPONDENTS

FIX DEPOSIT 30 30%
CURRENT ACCOUNT 10 10%
SAVING ACCOUNT 20 20%
SALARY ACCOUNT 25 25%
NRI ACCOUNT 5 5%
DMAT ACCOUNT 10 10%
TOTAL 100 100%
BANK ACCOUNTS
5
30
25
10
20
FD CA SA SALARY NRI DMAT
INFERENCE: From The Above Data, 30% Respondents Prefer FD, 10% Respondents Refer Current
Account, 20% Prefer Saving Account, 25% Prefer Salary Account, 5% Prefer NRI and 10% Prefer
DMAT.
Page | 70
GRAFICAL REPRESENTATION OF MOST FREQUENTLY USED SERVICES BY
RESPONDENTS IN SBI
SERVICES BY SBI NO. OF RESPONDENTS % OF RESPONDENTS

TRADITIONAL BANKING 10 10%
MOBILE BANKING 30 30%
INTERNET BANKING 20 20%
ATM 20 20%
UPI 10 10%
NONE 10 10%
10% 10%
20% TRADITIONAL BANKING

MOBILE BANKING
30%
INTERNET BANKING
ATM
20% UPI
NONE
FREQUENTLY USED SERVICES IN SBI
INFERENCE: FROM THE ABOVE DATA, 10% RESPONDANCE PREFER TRADITINAL

BANKING AND UPI, 30% PEOPLE PREFER MOBILE BANKING, 20% PEOPLE PREFER
ATM AND INTERNET BANKING.
Page | 71
GRAPHICAL REPRESENTATION OF RESPONDENTS HAVING AN ACCOUNT IN SBI BANK
ACCOUNT IN SBI NO. OF RESPONDENTS % OF RESPONDENTS

YES 55 55%
NO 45 45%
ACCOUNT IN SBI
45%
55%
YES NO
INFERENCE : From the above data, 55% people have an account in SBI and 45% people do not have
an account in SBI
Page | 72
GRAPHICAL REPRESENTATION OF
RESPONDENTS WHO ARE SATISFIED WITH THE
SERVICES PROVIDED BY THE SBI HOME LOANS
SBI HOME LOANS
20%
50%
30%
Yes No Maybe
INFERENCE: From the above data, 50% people are

satisfied with services provided by SBI Bank, 30% people
are not satisfied with the services provided by the SBI
Bank and 20% people are neither satisfied not dissatisfied
by the services provided by the SBI bank.
Page | 73
GRAPHICAL REPRESENTATION OF RATES AT
WHICH SBI PROVIDES HOME LOANS
SBI HPOME LOANS NO. OF RESPONDENTS % OF RESPONDENTS
6.70%-7.60% 42 65.6%
7.60%-8.20% 14 21.90%
8.20%-8.80% 4 6.3%
8.80% more 4 6.3%
RATES
6.30% 6.30%
21.90%
65.60%
6.70%-7.60% 7.60%-8.20% 8.20%-8.80% 8.80% more
INFERENCE: From the above data, 65.60% of respondents were asked to paid interest rate upto
6.70%-7.60%, 21.90% of respondents were asked to pay interest rates up to 7.60%-8.20%, 6.30%
of respondents were asked to pay interest rates up to 8.20%-8.80% and 6.30% of respondents were
ask to pay interest rates up to 8.80% or more.
Page | 74
GRAPHICAL REPRESENTATION OF
RESPONDENTS THAT THINK SBI SHOULD
IMPROVE THEIR SERVICES IN HOME LOANS
IMPROVE SERVICES IN SBI NO OF RESPONDENTS % OF RESPONDENTS
YES 27 42.2%
NO 2 3.1%
MAYBE 35 54.7%
IMPROVE SERVICES IN SBI
42.20%
54.70%
3.10%
YES NO MAYBE
INFERENCE: From the above data, 42.20% of respondents wants SBI to improve their services
regarding Home Loans, 3.10% respondents are satisfied with the SBI bank services and 54.70%
respondents are not sure if they want any changes.
Page | 75
GRAPHICAL REPRESENTATION OF SBI
HAVING CORE BANKING FACILITY FOR THEIR
CUSTOMERS.
CORE BANKING FACILITY NO. OF RESPONDANTS % OF RESPONDENTS

YES
NO
MAYBE
CORE BANKING FACILITY
25%
60% 15%
YES NO MAYBE
INFERENCE : From the above data, 60% of respondents are not sure about their answer, 15%
respondents don’t think SBI have core banking facility for their customers, 25% respondents think
that SBI have core banking facility for their customers.
Page | 76
GRAPHICAL REPRESENTATION OF SERVICES
THAT ATTRACTS THE PEOPLE MOST WHILE
TAKING HOME LOANS
SERVICES THAT NO. OF RESPONDENTS % OF RESPONDENTS

ATTRACT PEOPLE FOR
TAKING HOME LOANS
INTREST RATES 50 50%
SERVICES PROVIDED 25 25%
PAYBACK PERIOD 25 25%
SERVICES THAT ATTRACT PEOPLE FOR

TAKING HOME LOANS
25
50
25
INTEREST RATES SERVICES PROVIDED PAYBACK PERIOD
INFERENCE: From the above data 50% people are attracted by interest rates, 25% people are
attracted by services provided by the bank and rest 25 people take loans as they get a long payback
period.
Page | 77
GRAPHICAL REPRESENTATION OF LOAN
PROCIDURE:
LOAN PROCEDURE NO. OF RESPONDENTS % OF RESPONDENTS

YES 15 15%
NO 35 35%
MAYBE 60 60%
LOAN PROCEDURE
15%
60% 35%
YES NO MAYBE
INFERENCE: From the above data, 60% people are not sure if they are satisfied, 35% people don’t
think the procedure was smooth and co-operative and 15% people are satisfied and think that the
procedure was smooth and co-operative.
Page | 78
GRAPHICAL REPRESENTATION OF PEOPLE
WHO WILL BE INTERESTED AGAIN IN
APPROCHING SBI FOR HOME LOANS IN
FUTURE.
APPROCING SBI FOR NO. OF RESPONDENTS % OF RESPONDENTS

HOME LOANS IN FUTURE
YES 30 30%
NO 20 20%
MAYBE 50 50%
APPROCHING SBI FOR HOME LOANS IN

FUTURE
30%
50%
20%
YES NO MAYBE
INFERENCE: From the above given data, 30% people said they will prefer SBI Bank for Home
Loans in future, 20% people said they won’t prefer SBI for future Home Loans and 50% people are
not sure that they will take Home Loans from SBI
Page | 79
CHAPTER 6
6.1 BIBLIOGRAPHY:
1. Anju Otwani , Comparative Study of Housing Loan of HDFC and Allahabad Bank, IOSR
Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668.
Volume 19, Issue 5. Ver. I (May. 2017)
2. Dr. Amit S. Nanwani, A COMPARATIVE STUDY OF HOME LOANS OFFERED BY
PUBLIC AND PRIVATE SECTOR BANKS IN NAGPUR DISTRICT, ISSN (PRINT): 2395-
7786, (ONLINE):2395-7794, VOLUME-2, ISSUE-3, 2016
3. Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House Price”, Journal of
Housing Economics Vol. 4 No. 3
4. Garg, P. and Sharma, R. (2014), “Home Loan: A Comparative Analysis of S.B.I. and
5. H.D.F.C. Bank”, International Journal of Scientific Research, 3(10), 2277-8179.

6. Geete, V. and Thakur, A. (2014), “A comparative study of home loan scheme of private Sector
Bank and public sector bank (with special reference to S.B.I. and H.D.F.C.)” International
Journal of Research in Management and Social Science, 2(2), 12-21.
7. Gupta, U. and Sinha, R. (2015), “A Comparative Study on Factors Affecting Consumer’s
Buying Behavior towards Home Loans (With Special Reference to State Bank of India And
Life Insurance Corporation, Allahabad)”, IOSR-Journal of Business and Management 17 (2),
13 - 17.
8. Gupta, V. P. and Aggarwal, P. K. (2013), “Comparative study of customer satisfaction in Public
and Private Sector Banks in India”, Global Journal of Business Management, 7(1), 16- 26.
9. Kumaraswami, M. and Nayan, J. (2014), “Marketing of Housing Finance- A Comparative
Study of Public and Private Sector Banks”, Global Research Analysis, 2 (3), 116-120.
10. 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
11. La Courr, Micheal (2007), “Economic Factors Affecting Home Mortgage Disclosure Act
Reporting”, The American Real Estate and Urban Economics Association”, Vol. 2, No. 2 May
18, 2007.
Page | 80
12. Murugan, M. S. and Jansirani, J. (2017), “Customer perception towards Home Loan”,
International Journal of Trend in Research and Development, 12-14.
13. Rao, T.S. (2013), “A study on comprehensive problems of H.D.F.C. and S.B.I. loan takers in
Andhra Pradesh State”, Innovative Journal of Business and Management, 123-127.
14. Sangwan, P. and Bhan, K. (2012), “A Comparative Analysis on Home Loans of Public and
Private Sector Banks in India” 2 (9), 121-126.
15. Vandell, Kerry D (2008), “Subprime Lending and Housing Bubble : tall wag dog?”,
International Journal of Bank Marketing”, Vol. 21, No. 2.
Page | 81
QUESTIONNAIRE
1. AGE
- 20-30
- 30-40
- 40-50
2. GENDER
- Male
- Female
3. OCCUPATION
-Student
-Employed
-Self-employed
-Gvt employed
-Unemployed
-Private company employed
-Others
4. Income level (in lakh)

- Less than 1 lakh
- 1-3 lakh
- 3-5 lakh
- 5-10 lakh
- More than 10 lakh
5. Mention the Bank in which currently you are having account?

- HDFC
- ICICI
- BOI
- BOB
- SBI
- KOTAK MAHENDRA
- NRI
6. Mention the type of bank account you are having currently?

- Fix deposit
- urrent account
- Salary account
- Saving account
- Dmat account
- NRi account
Page | 82
7. The most frequently use service by you in SBI?
- Banking in bank
- Mobile banking
- ATM
- Internet banking
- Others
8. Are you having any account in SBI bank?

- Yes
- No
9. Are you satisfied with the services provided by the SBI home loans?
- Yes
- No
10. At which rate SBI provides home loans?

- 6.70%-7.60%
- 7.60%-8.20%
- 8.20%-8.80%
- 8.80% more
11. Do you think SBI should improve their services in home loans?
- Yes
- No
- Maybe
12. Does SBI have core banking facility for their customers?
- Yes
- No
- Maybe
13. While taking home loans which services attract you the most?
- Intrest rates
- Services provided
- Payback period
Page | 83
14. Was the loan procedure smooth and co-operative?
- Yes
- No
- Maybe
15. In future will you be interested again in approaching SBI for home loans?
- Yes
- No
- Maybe
Page | 84

Home Loans in India

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“HOME LOANS IN INDIA”

Under The Guidance of

DR. JYOTI PARIMAL SARKAR

This is to certify that Ms. VIDHI KISHOR LIMBACHIYA worked and

DR. JYOTI PARIMAL SARKAR

Seal of the College:

I, the undersigned Miss. VIDHI LISHOR LIMBACHIYA hereby

Wherever reference has been made to previous work of others, it has

DR. JYOTI PARIMAL SARKAR

MS. VAISHALI PANDYA

I would like to acknowledge the following as being the idealistic

I take this opportunity to thank the University of Mumbai for giving

I would like to thank my Principal, Dr Debajit N. Sarkar for providing

I would like to thank my Coordinator, Ms. Vaishali Pandya for her

I would also like to express my sincere gratitude towards my Project

I would like to thank my college library, for having provided various

1.10 EXPLANATION OF EACH 12

2.2 SCOPE OF THE STUDY 22

1.1 HISTORICAL HOME LOAN:

1.2 PRESENT HOME LOAN:

1.4 THE FREEING OF THE INTEREST RATE REGIME:

1.5 THE GROWTH OF THE HOME LOAN SECTOR

1.6 DIFFERENT TYPES OF HOME LOANS ARE OFFERED

• ADJUSTABLE-RATE MORTGAGES (ARMS):

• HYBRID, ADJUSTABLE-RATE MORTGAGES:

1.7 STEPS TO APPLY FOR HOME LOAN:

STEP 1: Fill The Loan Application Form & Attach The

STEP 2: Pay The Processing Fee

STEP 3: Discussion With The Bank

STEP 4: Valuation Of The Documents

STEP 5: The Sanction/Approval Process

STEP 6: Processing The Offer Letter

STEP 7: Processing The Property Papers Followed By A

STEP 8: Processing A Technical Check & The Site

STEP 9: The Final Loan Deal, Signing The Agreement,

• The property details on which the loan is applied

• TWO: To obtain valid clues on the applicant’s financial health.

1.10 EXPLANATION OF EACH DOCUMENT

❖ Annual accounts/Computation of Income (if any)

2. IDENTITY (OR ID) PROOF:

A bank usually deep-checks the applicant’s following documents to approve a home

➢ The qualification, age, and experience details.

THE ACCEPTANCE COPY

➢ The stage in which the construction is.

NOTE: A bank conducts a proper technical check to understand the construction

THE SITE’S VALUE ESTIMATED:

SIGNING THE LOAN AGREEMENT

1.11 THE LOAN DISBURSAL

1.12 LOAN DISBURSEMENT

1. WHAT IS FULL DISBURSEMENT?

2. WHAT IS PART DISBURSEMENT?

• Research for the banks offering the cheapest home loans.

• 1. Zero Processing Fees

*Plus applicable taxes

• LIST OF PAPERS/ DOCUMENTS APPLICABLE TO ALL APPLICANTS:

1. NOC from Society/Builder

1. Salary Slip or Salary Certificate of last 3 months

• DOCUMENTS FROM THE OTHER BANK:

3) SBI NRI HOME LOAN

• 1. Zero Processing Fees upto 31st March 2019

1. Stamp duty payable for Loan agreement & mortgage.

• LIST OF PAPERS/ DOCUMENTS APPLICABLE TO ALL APPLICANTS: