Summer Internship Report

A Study on “Home Loan Market in Maharashtra V/s PAN India”

Prepared by
Kushagra Chaudhary

MBA-PGP

Batch: 2021-23

Under the guidance of

(Prof. Sunil Kant Verma)

Academic year 2021-2023

Submitted To-
ISMS SANKALP BUSINESS SCHOOL

SPPU

UNIVERSITY

PUNE
 Acknowledgement:

I would like to thanks the ISMS SANKALP BUSINESS SCHOOL of management studies for giving
such a Great opportunity, especially to our Director MR. Debraj Banerjee, at “ISMS SANKALP
BUSINESS SCHOOL of management studies” for providing me this wonderful opportunity to
undertake my summer internship program with "Home First Finance Company India Ltd."

I would like to express our heartfelt thanks to Mr. Deepak Venkeshwar the Regional General Manager
of Maharashtra and Gujrat, and Mr. Aniket Chobey the Branch Manager of Kalyan Branch for letting
me be a part of the Home First Finance Company India Ltd.

I wish to express my sincere gratitude to my faculty guide Prof. Sunil Kant Verma who gave his full
guidance and encouragement to help me in completing my Project report.

In Future I would like to thank other faculty members and all the employees of Home First Finance
Company India Ltd. For helping me out during the entire internship program.

Thank You So Much.

 Student Declaration

I hereby declare that the Summer Internship Project Report titled “A Study on Home Loan Market in
Maharashtra Vs PAN India” In Home First Finance Company India Ltd. is a result of my own work and
my Indebtedness to other work publications, references, if any, have been duly acknowledged.

Kushagra Chaudhary

Signature:

Date:

Place:
 Executive Summary

India would be able to double its home loans to around $600 billion (around Rs 46.63 lakh crore)
within the next five years.

“This would coincide with the period when India attains its much-aspired goal of being a $ 5 trillion
economy” the vision of our great Prime Minister Narendra Modi.

“Favorable conditions like rising income levels, improved affordability and fiscal support augur well
for the demand for homes. Real estate segment in India is on its peak time. Developers and builders are
now financially stronger and more disciplined,” Ever before in history.

The requirement for home loans arises not because property prices are very high all the time but
because home loans make great sense from a long-term savings perspective. Not only are home loans a
handy tool for the common man to own a roof over his head but they also help to save money in the
long run. Interest rates are coming down all the time due to very high competition in market for lending
loan and the banks and the housing finance companies are literally falling over each other to lure the
prospective home-seekers. Lot of people are still not able to manage resources for the down-payment,
which come out to be at least 15 to 18 per cent of the property value. Seeing the importance of the
situation, Banks are coming up with home loan not only public bank but private bank also try to reach
as much as customer base.

Total 4555 projects are registered in Maharashtra Real Estate Regulatory Authority (MAHARERA)
which shows that Maharashtra is a booming in real estate sector and this all happens due to increasing
population in Maharashtra, Migration of corporate workforce from other states to Maharashtra is
increasing incomes, high standard of living.

Though the Real estate sector is booming in India is just because of housing needs of the people of
India with very high real estate prices, public are increasingly opting for housing loans to acquire their
dream house.

Overall, we can say that home loan market in Maharashtra and PAN India will going to be very high
never before in history.
 Chapter:1

Introduction about the industry:

India would be able to double its home loans to around $600 billion (around Rs 46.63 lakh
crore) within the next five years

“This would coincide with the period when India attains its much-aspired goal of being a $ 5
trillion economy” the vision of our great prime minister Narendra Modi

“Favorable conditions like rising income levels, improved affordability and fiscal support augur
well for the demand for homes. Real estate segment in India is on its peak time. Developers and
builders are now financially stronger and more disciplined,” Ever before in history.

Before few years the bank wasn't providing a lot of loan to the client wherever a lot of
probability of rejection if the profile may be a very little up-down however a similar issue is
currently modified. Before individuals like better to keep during a rented house however
currently they assume to buy their own house as a result of the house loan market is providing
the loan at a very low rate of interest.

Individuals additionally get advantages from the govt. because the government provides
subsidiaries to those customers who are buying homes for the first time in their life. As time
passes the financial gain of the individuals is additionally increasing day by day so that they are
a lot of capable of buying their own house because it is important for the human life to have
their own home. National banks come back underneath RBI pointers to prove only eighty % of
the funding of the particular price weren't allowed to pay the revenue enhancement and
registration charge.

When NBFC (Non-Banking Financial Company) came to promote they also began providing
loans to those customers who cannot apply to the commercial bank. As there has cash financial
gain or freelance or have some downside in CIBIL score this sort of individuals can’t apply
to the commercial bank. In today's time, NBFC provides 85- 90 % of the loan to worth get {to
buy for} the house therefore individuals need to require the house loan and buy their dream
house. To this, there's terribly robust competition within the market concerning the ROI (Rate of
Interest).

The company which deals in home loan sector is called Housing Finance Company

NBFCs can be further classified on the kind of business they are into.

A housing finance company is essentially an NBFC that provides home loans.

 Significance Of the industry

Due to Rising Population and increasing urbanization the need for Housing is ever increasing
“Housing for all” has been one of the motoes of government of India.
 HFCs play a major role in: -

1. Financing for home purchase

2. Implementing government schemes in financing for affordable homes.

A Housing Finance Company, is a Non-Banking Finance Company (NBFC)

Even though an NBFC is not a Bank, it must comply with those aspects of the Act which deal
with their specific area of business.

 Functions of Housing Finance Companies: -

1. Business Creation.

2. Maintaining portfolio.

3. Back Office.

4. Support.

Over all the Housing Finance Industry is very large

Due to too many competitions there is very large variation in rate of interest (ROI).So, to be a market
leader in this industry company have to give as much as low Rate of Interest to gain Customer.

Introduction about the Study:

Our main topic is “Home Loan Market in Maharashtra Vs PAN India”

Home loan market in Maharashtra is number 1 in India out of all 28 states also in Maharashtra
Mumbai, Thane and Pune is top 3 cities in which more than 3000 projects are running now.

Home is a most important thing of a human being, who since his childhood, dreams to have
living space of his own. Once in a lifetime investment requires loan to do it and that is how the
home loan comes into scheme of things.

Buying a home is dream for everyone. Due to the rising price of properties, it has almost
become impossible for an average earning person to buy a home through lump sum payment.
Therefore, the concept of home loan has come into existence.

There are lot of housing finance institutions, banks and Companies in public and private sector
which offer home loans. Choosing one institution and one offer for home loan amidst the
thousands available options have become a very difficult task in our country where there is too
much competition. Apart from this, there are some business jargons and technicalities that make
this job more tough and difficult. Through this study, we propose to identify the critical factors
impacting the growth and distinguishing the growth pattern in home loan portfolio particularly
in public sector banks in India.
 Objectives of the study:

• To understand the concepts of home loan market in Gujarat Vs PAN India

• To undertake in-depth empirical study on housing loan Market

The secondary data considered for the purpose along with observations about the industry
home loan market in India. The housing is one of the basic needs of the customer as it
ranks next to food and clothing. A certain minimum standard of housing is essential for a
healthy and civilized living. Thus, the priority has to be given for the development of home
loan industry in a country. The human settlements have a lot of impact on environment. It is a
tool for modern economic development. The census records of India exhibits that there was no
deficit-housing problem in India till the first half of the century.

In India, there is a very widening gap between the supply and demand for housing. There is an
urgent need to modify the policy on one hand and look for an innovative approach for
construction of houses on the other to reduce the deficit. The Government of India had
introduced schemes and projects for housing problem in every five-year plans.

The National housing Policy formulated by government of India takes into account the
developments on national and international scene on shelter sector. The adoption of National
Housing Policy by the Parliament in 1994 was a landmark step in promoting housing
development in the country.
The policy in its endeavor has reduced deficit of housing to some extent. It envisages a major
shift in the Government’s role towards being a facilitator rather than provider. The working
group on urban housing for the ninth plan gave a thrust to housing development a targeted
construction of 8.87 million housing units. The National Housing and Habitat Policy 1998
emphasized housing for all by the end of 2007 (Peter D F Cardozo). This would have been
achieved with the help of public and private firms and corporate sectors. The rapid urbanization
and a changing socio-economic scenario led to a greater demand for housing. This led to an
exponential growth in housing finance market.

 Drivers of Demand in Housing:

The housing demand is a product of three different variables. First and foremost is the primary
need that is driven by increasing population. Secondly, economic growth and consequent urban
migration have caused changes in preferences towards more nuclear families, causing a
perceptible lowering of the household size. Finally, increasing affordability has driven
households to invest in larger houses.

Increasing population: -Population growth has a direct bearing on the requirement for housing
units and, through this, on Floor Space Area (FSA) requirements.

Urbanization: - Urbanization has twin impact on housing demand. On one hand, it reduces the
area per household, and on the other, there is an increasing need for more nuclear families,
leading to the formation of a greater number of households.
 Nuclearization: - Nuclearization refers to the formation of nuclear families from joint families.
Nuclearization, like urbanization, also has twin impact. It reduces the area per household, but
increases overall household formation, thereby increasing the demand for housing units.
Affordability: -There has been a steady movement of households into higher income categories.
The movement is more pronounced in the high-income categories

 Importance of Home Loan:

The requirement for home loans arises not because property prices are very high
all the time but because home loans make great sense from a long-term savings
perspective. Not only are home loans a handy tool for the common man to own a
roof over his head but they also help to save money in the long run. With very
high real estate prices, people are increasingly opting for housing loans to acquire
their dream house. Interest rates are coming down all the time due to too much
competition in market for lending loan and the banks and the housing finance
companies and institutions are literally falling over each other to take benefits
from the prospective home-seekers. A lot of customers still not able to manage
resources for the down-payment, which comes out to be at least 15 to 18 per cent
of the property value. Seeing the importance of the situation, Banks are coming
up with home loan not only public bank but private banks, companies and
institutions also try to reach as much as customer base for their profit.

Products called “zero down payment loans‟ wherein 100 per cent funding is provided for select
properties. These lucrative offers are other major reasons for why customers are opting for
loans.

• Even if one can afford to buy a home with one's own money, home loans should be
availed because they act as good savings instrument. According to industry estimates,
the long- term average return in investing in a home is about 20% p.a. while the average
cost of borrowing funds in the market today is about 7% p.a. (considering all tax
breaks).

• For salaried employees, housing loans are the best way to avail of tax benefits. Many
customers simply go for the home loans in order to take these benefits. Interest payments
up to 2.0 lakh on housing loans are deductible from the taxable income and there is a
further deduction of taxable income maximum up to 1.5 lakh against repayment of
principal portion per annum. In case a customer stays in a rented house, the cost of the
loan will be nearly 0% percent since customer will be saving a decent amount on rent.

Various types of home loans are available in India:

They are described below: -

• Home Purchase Loan: - These are the basic home loans for the purchase of a new
house. These loans are given for purchase of a new or already built flat/bungalow/row-
 house.

• Home Improvement Loan These loans are given for implementing repair works and
renovations in a home that has already been purchased by the customer. It may be
requested for external works like structural repairs, waterproofing or internal works like
tiling and flooring, plumbing, electrical work, painting, etc.

Home Construction Loan These loans are available for the construction of a new home.
The documents required by the banks for granting customer a home construction loan
is slightly different from the home purchase loans. Depending upon the fact that when
customer bought the land, the lending party would or would not include the land cost as a
component, to value the total cost of the property.

❖ Currently there are more than 4555 projects are registered in Maharashtra.
❖ In Maharashtra RERA official website has received 37000 applications in 2022.

Whereas more than 82000+ real estate companies are registered under RERA in India.

Real estate industry in India is currently more than 65000+crore (US$ 9.30 billion) from 12,000
crore (US$ 1.72 billion) in 2019.

Real estate sector in India expected to reach US$ 1 trillion in market size by 2030, up from US$
200 billion in 2021 and contribute 13 percentages to the country’s GDP by 2025

According to Savills India, real estate demand for data centers is going to be expected to
increase by 16-20 million sq. ft. by 2025.

Demand for residential and commercial properties has increased due to increased urbanization
and rising household incomes. India is among the top 10 price appreciating home loan market
internationally.

Organized retail real estate market stock is expected to increase by 28% to 82 million sq. ft. by
2023.

As per ICRA estimates, Indian firms are expected to raise >Rs. 3.5 trillion (US$ 48 billion)
through infrastructure development and real estate investment trusts in 2022, as compared with
raised funds worth US$ 29 billion to date.

Private market investor, Angle investors, Blackstone, which has significantly invested in the
Indian real estate market (worth Rs. 3.8 lakh crore (US$ 50 billion), is seeking to invest an more
than Rs. 1.7 lakh crore (US$ 22 billion) by 2030.

Real estate market is Driven by increasing transparency and returns, there’s a surge in private
investment in the sector. Indian real estate attracted US$ 5 billion institutional investments in
2020, equivalent to 93% of transactions recorded in the previous year.
The real estate market attracted private equity investments worth Rs. 23,946 crore (US$ 3,241
million) across 19 deals in Q4 FY21.
 In the first-half of 2021, India registered investments worth US$ 2.4 billion into real estate
assets, a growth of 52% Year on year.

Construction, infrastructure and real estate is the 3rd largest sector in terms of Foreign Direct
Investment inflow. Foreign direct Investment in the sector (including construction development
& activities) stood at US$ 52.48 billion between April 2000 to December 2021

Over the entire topic is very large though in Indian real estate sector Gujarat is leading among
all over other states.

Rationale of study

The reason for conducting this study is that during my training period I got to know that most of
the business is from DSA, builders, or real estate brokers.

There are less numbers of customers who comes from their friends and family reference or by
direct branch walk-ins. So, i decide to study in detail the segment of the loan market.

I came to know that arranging meetings with builders is very difficult to understand the real
estate market from their own experience as compared with the DSA. So, I started meeting all the
connectors and builders who are available in my assigned area.

 SWOT Analysis

o Strength:

➢ Growth in profit with increasing ratio.

➢ Increasing profits quarterly for the past two quarters.

➢ Increasing Revenue quarterly for the past two quarters.

➢ Company with Zero Promoter Pledge.

o Weakness:

➢ Negative Breakdown Second Support.

 ➢ Low Piotrowski Score firms with weak financials

o Opportunities:

➢ Decrease in Provision in recent results.

o Threats:

➢ Increasing Trend in Non-Core Income.

➢ Insiders sold stocks.
➢ Stocks with high PE (PE > 40).

 Research Problem: -
To determine factors affecting in home loan market.

 Research Objective: -

1. To study the problems faced by customers in obtaining home loan.

2. To know about customers response regarding the home loans.

To study the satisfaction level of customers regarding the home loans provided by bank/finance
company.

 Research Design: -

3. Sample size: -
The sample size taken in this research is 100 respondents to get the accurate result in the
primary study.

4. Sampling Frame: -
This study includes the people who are staying in Ahmadabad.

5. Sampling technique: -
The Non-probabilistic convenient sampling method was use.

6. Data collection instrument: -

A structured questionnaire was designed with close ended and open-ended questions.
 7. Source of data collection: - Primary data was collected with the help of self-administered
structured questionnaire (Google forms) & secondary data was collected.

Chapter 2:

Conceptual Background:

. 1.Asish Saha, Debasis Rooj, Reshmi Sengupta

International Journal of Emerging Markets, 2022

Purpose: This study aims to investigate the factors that drive housing loan default in India based on
unique micro-level data drawn from a public sector bank's credit files with a national presence in
India. The authors address endogeneity in the loan to value ratio (LTV) while deciphering the
drivers of default.

2 D Santhosh Kumar, Ramesh Kumar Miryala

International Journal of Indian Culture and Business Management

The Real Estate Regulatory Authority Act (RERA) is a landmark event in the real estate sector in
India. The Act aims to provide confidence to the buyer of a real estate property. How RERA
benefits homebuyers in general and home loan borrowers in specific, is the aim of this article.
RERA also helps the other stakeholders in the real estate market like banks, housing finance
companies, etc. Various functions and the salient features of the RERA have been explained.
Though the RERA is at the initial stage, it definitely will affect and regulate the real estate market
over a period of time. Real estate sectors play an important role in delivering one of the basic needs
of human beings. The sector has grown significantly in the recent past. Before implementation of
RERA, the sector was largely unregulated and professionalism was lacking. RERA mainly aims to
protect the interest of homebuyers and enhance transparency in the real estate sector.

3 Ajitabh Dash
International Journal of Banking, Risk and Insurance 7

The purpose of this paper is to explore and predict the relationship between factors affecting
customers and their overall satisfaction level with home loan service extended by public sector
banks in India.

4 M Vijayakumar
Sumedha Journal of Management

The purpose of this study is to find out the root cause for the default of the home loan in India. To
capture the market share, banks and housing finance companies are pushing their home loan
product to the consumers. Besides, Government is also encouraging the banks and housing finance
companies for the liberal selling of the home loan as housing finance industry is related to many
other industries. But consumers after receiving the home loan find it difficult to repay the loan
which may result in defaulting of the home loan. The present study aims at finding out the reason
for the default of home loans in India. The findings of the study reveal that respondent with lower
 family income default than others. The main reason for default of loan among the borrowers are
unforeseen personal/family expenditure, delay in loan sanctioning & disbursement and lack of
customer orientation

5 Snehal Shah, Nikita Lalwani, Diya Modi

International Journal of Management, Public Policy and Research

Home is the basic necessity of each and every individual. It executes as a living place for families.
As home is a basic necessity and is useful in future, many people invest in purchasing of house. But
nowadays, purchasing of house for middle class family is very difficult, as it is not affordable. So,
for the convenience of people, Government has provided the House Loan facility at lower rate of
interest to every individual. Basically, A Housing Loan is to purchase the home on loan in which an
individual pays a number of installments every month at a particular interest rate. The loan is
provided to an individual with the terms and conditions of banks like eligibility of the person,
income of the person. Nowadays, many banks provide the facility of loan at different interest rates.
The main point in loan is the interest rate. The main purpose of this comparative study is
customer’s satisfaction and the procedure of home loan in public and private sectors bank

6 Vipin Desai
IUP Journal of Bank Management

Reverse mortgage loan is a home loan product having its deep roots in western countries. As far as
India is concerned, the name formally figured in the Budget-2007 speech, in which the finance
minister proclaimed the government's intention to have this product launched as a social security
measure for the senior Indian citizens. The banks and other lending institutions were expected to
offer this product. However, the present status of the scheme does not reflect it having reached the
expected level. Although some banks have announced the scheme, the volume of sanctions and
disbursements is not large enough. The popular discourse suggests that Indians would not accept
the said product due to their emotional attachment to the house, and their mindset towards leaving a
legacy behind them for their heirs. Do the banks, too, have apprehensions on these lines? Is it due
to such apprehensions that much publicity is not given after making formal announcements? This
paper makes an attempt to analyze these issues based on the data collected from the senior citizens
and ascertain the potentiality of the product by examining the substance and the scale of the said
apprehensions, if any. The study is based on a sample survey of senior citizens in Vadodara,
Gujarat.

7 Archana Fulwari, Jayant Kumar

Asian Journal of Research in Banking and Finance

Home ownership has always been among the top priorities of households in India. The post reforms
period has witnessed higher disposable incomes, lower rates of inflation and lower rates of interest
rate. Besides that, the increased thrust on retail lending and the aggressive stance of new entrants in
the liberalized financial sector of India has led to the expansion of the housing finance sector
among other things. These factors have created conducive environment for the demand for housing.
In this context, the paper examined the demand for home loans as a derived demand for housing.
The outstanding home loans of commercial banks, number of home loan accounts, share of home
loans in the total credit of banks, etc, have been examined as indicators of trends in the demand for
 housing.

8 Apoorva Bhate, Mercy Samuel

Indian Journal of Public Administration,

Affordable housing is the need of the hour to overcome the existing housing crisis in India. About
95% housing shortage is observed in the economically weaker sections of the society. Housing for
All scheme—Pradhan Mantri Awas Yojana, ushered in ample opportunities by establishing a
lucrative model for all stakeholders. But only 38% of the sanctioned houses are constructed in the
span of 5 years. Success of the scheme lies in appropriate identification of beneficiaries and
creating a system with linkages for them to avail the benefits stated under the scheme. However,
constructed units are lying vacant and an upsurge of 25% in unsold stock inventory is observed.
Moreover, the focus of research has always been on supply side to aid the builders and financers in
service delivery. This prompts a need to scrutinize the situation and identify the prevailing gaps.
Interactions with stakeholders show the impediments in accessing the government affordable
housing. The study has generated relevant insights from the users’ point of view regarding the
various policy aspects which are yielding deviations from the outcomes as previously desired by
the policy. The study is case-based orienting around affordable housing schemes in Thane,
(Kalyan).
 Chapter 3:

Organization Profile:

 Introduction about the Company

Home first is Young Finance company built on single premise:

“We believe everyone should own their dream home.”

We blend technology and personalization, so the loan process is easy and hassle- free .
We put our customers first.

Home first was incorporated in February 2010 as a name of Home First finance company India
pvt Ltd. in Bangalore by “Mr. Manoj Viswanathan, Mr. P S Jayakumar, and Mr. Jaithirth Rao”
currently “Mr. Manoj Viswanathan” is the Managing director and CEO of the home first.

In 2011 they were funded by Series A funding by “Bessemer Venture”.

In 2012 home first, expand its footprint as a branch in Gujarat and Tamil Nadu and shift its
Head Office from Bangalore to Mumbai.

In 2013 home first hit the first milestone it approves 1000 loans and done business of 690
million.

In 2014 company become profitable with loan assets of Rs 1630 million.

In 2015 after 5 years company create a customer base of 5000.

In 2016 Home first grow, expand to more than 25plus cities and build a customer base of more
than 10,000.

In 2017 Additional equity infusion add by the True North invest in Home First and got the
rating of (ICRA) become A+ it indicates the highest degree of safety of the fund. “In 2017
company made a record of its gross loan assets was 8474million and

In 2018 its net worth was 4886 million.” Within two years the gross loan assets increased to Rs
24,436 million and build a customer base of 30,000 and open more than 60 branches.

In 2020 the Asset under Management crosses above 35 billion and new investors invest in the
company. As per our view, Home First Finance is the only company that has to achieve this
much customer base in just 11 years, and recently the company also launch its IPO on January
21, 2021.
In April 2022 company celebrating its 5000 crore Asset under Management (AUM).

Recently company had a sponsored a web series called Home First ke Saath Home Santi on Disney plus
hotstar.

Home First Finance Company prove loan to the affordable segment to handle those type of
customer who is not much literate it’s a very difficult job but Home First Finance Company
make that possible but recruiting those employees who is familiar with the local language.

It also has the Home First Customer Portal app in the different app where customer can operate
all the things like he can track the loan process if he requires any documents, he applies it by
just one click he did not have to visit the branch for anything.

Home First website is also very safe and secure on the website all the things are mentioned even
the customer can apply for the loan by sitting at his home and company’s RM (Relationship
Manager) will contact customer and he or she will guide you regarding the whole process and
the whole process is paperless.

It also has the smart Auto Prepay system which is activated if the customer wishes it directly
reduce the loan tenure of the customer at no extra cost. It also has the smart loan EMI calculator
on its website where customers can calculate its loan EMI with and without Auto prepay.

There are many competitors of Home First like:

Aspire Home Finance Corporation,
Micro Housing Finance Corporate,
Au Housing Finance Limited but they can't compete with Home First Finance Company
because HFFC believes in technology that makes the loan process easy and Hassel free and fast.

Company has 4 applications on play store and on App store:

1 RM Pro
2 Home First Connect
3 Home First Customer portal
4 Intern Pro

RM Pro for Company’s Employee means Relationship Manager and for Customer Service
manager.

Home First Connect for company’s Connectors who are join with HFFC and give us business
for their easy process HFFC made an application for them.

Home First Customer Portal is an application for company’s valuable customers.

Intern Pro is an application for company’s interns for their easy connivance
 Logo of HFFC

Vision of HFFC

Shape the future of financing homes, and empower people to live better!

HFFC loans with advantages

1. Maximum loan amount
Maximum loan to value of 90% it means that company give ninety percent of loan be provided
for housing loan with tenure ranging up to 25 years

2. Auto-Prepay
Auto prepay feature facilitates pre-payments in addition to EMI (equated monthly installment)
with no pre-payment charge for existing customers.

3. No income proofs
HFFC can give loan to the customers who don’t have income proof Self-employed or informal
salaried means the customers who have their salary in cash not in bank we don’t require income
proof to sanction a loan.

4. Loan enhancement
If customer Have an unexpected expense, or has the property value increased? Don’t worry,
because HFFC will add on the extra amount to customers’ existing loan.

5. Flexible Home loans

Perks of choosing Home First loans
Customers comfort and convenience are our top priorities

6. Loans for different purposes

Building a home on your property? Or adding another floor? Or adding a new room? Whatever
the reason, HFFC give you a loan, to make customer home more beautiful.

7. Customer relationship managers

HFFC managers care about customers’ needs. You speak to one person throughout your loan
process, and they are always available to help with any questions. All our customers are mapped
 to a fully dedicated relationship manager.

8. Loan applications
After submitting an application, customer will receive a text message with a response within 48
hours which is very fast and easy process. We send regular updates to customers on the status of
their loan applications and remind them of their payment schedules through automated calls and
text messages.

9. Loans at customer convenience

Our relationship managers visit customer's home or office, at their convenience, for meetings.
Our managers’ conduct home and workplace visits to ensure minimal disruption to a customer’s
daily routine. it is necessary to know about customer verification.

10. Technology put to good use

HFFC loan process is entirely paperless, with even the documents being uploaded via scans to
our system. Track your loans, through customer mobile application ‘Home First Customer
Portal’. We have a dedicated mobile application for many functions, including accessing their
loan statements, prepaying loans without any prepayment charges and raising service requests.

Home First Finance Company India Ltd Product range

Home First main product is a Home Loan but it has many subcategories in it.

HFFC have many products like

 Home loan for self Employed

 Home loan for salaried professionals
 Home Construction Loan
 Home Extension & renovation Loan
 Loan Against property
 Home Loan For NRI
 Home Loan for Senior Citizen
 Home loan Balance transfer
 Home loan Top up Shop Loan
 Loan For Purchase of Commercial Property

• These all are the product that Home First provides the starting Rate of interest (ROI) for any
home loan product @ 9.5% for a home loan and it can go up to 14% as per customer Profile

HFFC provide funding up to 85 to 90 % in builder purchase and 75 to 80 % in resale property

base on the valuation report this can also be less if the property condition is too week.
• For LAP (Loan Against Property) and Shop Loan, the starting Rate of Interest is 13% to 14%
and it can go up to 17% to 18% base on customer profile in this type of loan HFFC provide
50% of funding base on the valuation report.

• Home construction loans & home Extension & renovation loans also have the 13% to 14%
starting rate of interest and it goes up to 16% to 17% but in this loan company doesn't the whole
amount at one time as the construction goes on and the customer submits the quotation of the
construction the company release the money to the customer account.

• If we talk about the document requirement then KYC is mandatory for all the products and the
master file of the property is require and then base on the customer profile and his business
Relationship Manager ask for additional document.
 Chapter 4:

Data Analysis and Presentation:

• We conducted survey of 71 people were in 45.1% are female and 54.9% are males.
• 94% of people are in age group of 18-25 only 6% people are in age group of 26-25.
• Most of them are work in professionals.
• 83.6% of people prefers home loan while purchasing a new house.

Almost 70% of people are comfortable at the rate of interest @7.60 which is the basic starting
rate of any public sector bank.
• 69% of people are able to get amount of loan which they required by the bank or financial
institutions as per their requirement.
• 70.6% of people think that their bank or financial institutions provide competitive interested
rate as compared to other players in the market.
• Almost 77.5 % of customers think that their bank or financial institutions provide all loan
document digitally through application.
 Chapter 5:

Findings, Suggestions and conclusion:

Basic findings of SIP:

Overall study was very responding and also gives suggestions and limitations of bank or financial
institution.

This study shows that how bank or financial institutions are work, are they work satisfactory or not, are
they able to give customer service or not?

In this survey 60.6% customers are satisfied with home loan processing time and fees taken by bank or
financial institutions, which shows that bank or financial institution are doing very good in losn
processing and fees taken by them.

77.5% of customer are able to have all loan document digitally through application by their bank or
financial institutions.

60.6% of customer feels that bank or financial institutions provide monetary incentive/reduction in
interest rate for paying EMI on regular basis which means that if bank is paying any monetary or non-
monetary reward to their customer, they feel motivated and in future they will become your regular and
valuable customer.

69% of customer are able to get amount of loan which they required by the bank or financial
institutions as per their requirement which means that overall loan facilities given by bank or financial
institution to their customer is satisfactory.

45% of customers are satisfied with overall home loan facility that bank or financial institutions
provide which they have right now, and 40% of customer feels that neutral facility.

As per research data overall loan market is doing very good at customer side as well as business side.

Most of customers who have their home loans are much satisfied which shows positive impact on
economy as well as loan market.

• Loan market is very huge in India over 100 small, medium and large companies or banks or any
private institutions are working in loan segment, to get customers from prospectus bank or
financial institution have to give some extra benefits which other company or bank cannot give

• Customer satisfaction is top most priority of any company or bank to grow their business of
home loan, because if one customer is satisfied with the service provided by bank or company
he or she will be having your future regular customer and have valuable asset for company or
bank and if he or she satisfied they will do mouth marketing and increase your customer base,
so give customer priority first.
 • By management point of view, if possible, for bank or company give loan to the customer as per
their requirement amount some company give 80 to 90% of loan as per valuation.

• In loan segment it’s all about interest rate if one company or bank give loan to their customer at
lower rate and charges as much as low processing and login fees obviously customer will go to
that company or bank so try to reduce processing fees and margins on loans to grab the
opportunity to get customers.

✓ Learning’s

 I have learned the importance of verification because from there we get the know
the nature of the customer.

 Learned the importance of communication skills and how to maintain the

relationship with the customer and the DSA.

 I have learned how to talk with the customer on call and make them understand to
keep balance in their account to pay the EMI.

 Learned how to check the credibility of the customer by checking the bank
statement or passbook of his whole family for the last six months.

 I have observed that it is very important to keep a good relationship with the DSA
and give him the report of his case on time.

 I have learned how to do the sales and how to convince the customer and DSA for
rate of Interest if there is any problem.

 I have observed that company has good work atmosphere and employee are very
much helpful to us in all the work and they also show the teamwork.

 I have learned what are the different types of documents of the property and check
the title certificate of the property is clear or not.
  I have also learned to read the legal document of the property and according to that
document check all the property documents and see the whole chain is clear or
not.

 I have learned the whole process of working and have done fieldwork so I know the
whole process of working in home loan industry.

✓ Work done
 In the starting, I found out what is the loan parameter on what parameter we will give the
loan to the customer whether he/she self-employed, bank salaried, or cash salaried.

 Then I have done awareness calling to the customer and told them to keep the money of EMI
in their bank account to avoid the bounce charges.

 I have done BD activity (business development) in that I have found out more them 20 DSA
(direct sales agent) contact numbers.

 First, I have found out DSA on Titwala (Thane) area then call them and explain them our
company product in detail and answer their counter-question like what will the interest in
different product and different profile.

 But as our branch is in Kalyan so most of DSA was having connector code already opened in
our bank and they were doing business with us.

 Then I expand the area and find out some more DSA contact and call each of them and pitch
them our product in detail and also answer their counter-question.

 Then I learn how to fetch the CIBIL report from the salesforce.com software and also
learned how to read the CIBIL report.

 Then I learn how to read the CIBIL report of the customer and find out how many loans are
going on whether he is paying him all EMI on time or not then check if the customer has
any overdue or not and check customer has become NPA (non-profitable assets) in any past
loan.

 Then I learn how any customer becomes NPA (non-profitable assets) if the customer bounces
his three EMI continues then the bank declares that customer as an NPA customer.
 Then after I learned that once the customer bounce three EMI the bank issues a pre sarfaesi
notice, then gives him 30 days to reply to that notice if the customer does not reply to it then
bank issue the sarfaesi notice and take the possession on that property.

 Then after possession bank waits for one month and then gives the paper AD for that
property and then after one month in 6-month the bank puts that property for auction.

 Then I have learned how to check the financial creditable of the customer by checking his
banking and if he has any FD or mutual fund.
 Then I have done the verification of the customer and his workplace by asking him some
simple questions like what work do you do, is your salary comes in the bank or cash if he says
cash then we have to

 verify that at his workplace or we ask if he has any proof, or he can arrange that same thing
in a company letterhead.

 Then in work verification we ask him how many years you are working in the same place
then we verify with his boss then we ask him how you get the payment in hour wise or fix
salary and many more question depend on work profile.

 Then I have done meeting with some DSA and convinced them to open code with us and
have opened code of three DSA during my internship.

 Then I got one case from one of my DSA the customer was doing job in eye were shop
and he was going to buy the builder purchase property I have done PD of the customer with
the RM and we have done the work verification the customer and explain him the whole
loan process.

 Then in next, I have given his property documents for legal and technical to check the
property is all ok in legal and find out what is the valuation of that property.

 After that report came clear then I have done a login of that case on the salesforce.com and
submit that case for approval.

 If there was some query raise by the underwriter then after solving that query the case got
approval and it got sanction.

 Then I have done much verification with the RM because it was very important path of our job
After all, though we can come to know if the person is genuine or not.

 Then after some time, I got another case by one of my DSA the customer profile was the
husband was a trader of wholesale business and the wife was running tuition classes and his
requirement was 17 LAKH but in husband CIBIL there was some bounce and his CIBIL
score was not so good.

 Then we asked him for the justification of his bad CIBIL after that we have done the
verification of that customer and discuss the case with the branch manager, he has said that
 they have too much obligations that have to close the loans but they are not ready to close
the loan so it was rejected.

Then I have done many collections calling to the customer who has bounced the EMI and
tell them to pay their EMI as soon as possible then after the customer does not pay the EMI
then we have to do the collection visit also to the customer house this process is also a very
important path of our job.

 In short, during my three-months internship, I have found out three DSA and done two case
forms that got sanctioned.

 There is too much to learn from branch employees their team work is amazing and
leadership of branch manager was tremendous.

 During my internship I met RGM regional general manager also.

 It was very fabulous internship.

 Lastly, I would like to thank all my branch employees of HFFC.

 The main Limitations of the home loan market is stated below: -

There is too much competition in the home loan market some of the public sector bank give home loans
to their customer at very low prices like average home loan interest rate is starting at 7.70% and on the
other hand some of the private sector bank/financial institute/finance company provide loans to their
customer at higher interest rate at starting 8.5 to 14% because they did not require all documents as
public sector bank required, they give loan on verification bases.

If the customer does not have any bank statement or any return file than also private bank provide loan
to customer so they can charge high rate of interest.

RBI now a days is increasing their REPO (Repurchasing option rate) so it affects all over the home loan
industry, which leads to higher rate of interest on home loans so the demand of home loans is going to
decrease. which will lead to fall in customer base.

Another limitation is that loan provider company does not give any monetary/non-monetary facility by
paying EMI on regular bases.

So, above are some of the limitations of home loan market whether it is Maharashtra or PAN India.
 Conclusion:

I can conclude that it was very good to have a topic like Home Loan Market in Maharashtra Vs PAN
India.

From my study it would conclude that overall home loan market is quite growing and satisfactory to the
customers.

Home loan market in Maharashtra is much higher than any other state because the infrastructure and
income level of people in Maharashtra is going high and high, day by day as well as socio-
economic level Maharashtra have diversity and in Maharashtra as special projects are running in
Mumbai, Thane and Pune is doing well in terms of real estate so the requirements of home loan is
demanding in these 3 cities.

In Maharashtra as well as PAN India the government of India is also supporting to home loan sector
directly by giving first time home purchase government give them subsidy of rupees 2.67 lakh so
to take the advantage of this facility lower-middle- and middle-income group people are trying to buy
their dream home.

The home loan market in India is estimated at slightly over $300 billion, which represents a mortgage
to GDP ratio of just 11 per cent.

As per my report I can say that companies and banks which provide home loans have higher having
benefited then average industry outcome, because from my report 70% of customers are satisfied with
the service provided by bank or financial institution.

Currently there are more than 4555 projects registered in Maharashtra.

In Maharashtra RERA official website 37000 agents are registered.

Total 4555 projects are registered in Maharashtra Real Estate Regulatory Authority (MAHARERA)
which shows that Maharashtra is a booming in real estate sector and this all happens due to increasing
population in Maharashtra, Migration of corporate and working force from other states to
Maharashtra increasing incomes, high standard of living.

So, I can say that loan market In Maharashtra is higher than other states of India.
 Annexure:

1 Name

2 Gender
o Male

o Female

3 Age
o 18-25
o 26-45
o 46-60
o 61-70

4 Occupations
o Working professional

o Employee

o Business man

o Home maker

5 Do you prefer home loan while purchasing a new house?

o Yes

o No

6 At which Interest rate you are comfortable to avail home loan?

o 7.60%

o 8.50%

o 9.50%

o 11.50%
 7 Are you able to get amount of loan which you required by the bank or financial institutions as per
your requirement?
o Yes

o No

8 Do you think that your bank or financial institutions provide competitive interested rate as
compared to other players in the market?
o Yes

o No

9 Are you satisfied with overall home loan facility that your bank or financial institutions provide
which you have right now?

o Highly satisfied

o Satisfied

o Natural

o Dissatisfied

o Highly dissatisfied

10 What proportion of your monthly income goes towards your home loan EMI?

o 1-10%

o 11-25%

o 26-50%

o 51-75%

11 Does your bank or financial institutions provide all loan documents digitally through
application?
o Yes

o No
12 Are you satisfied with home loan processing time and fees taken by bank or financial
institutions?
o Yes

o No

13 Are you satisfied with verification done by your bank or financial institutions before availing
you home loan?
o Highly satisfied

o Satisfied

o Average
o Dissatisfied

o Highly dissatisfied

14 Does your bank or financial institutions provide monetary incentive/reduction in interest rate
for paying EMI on regular basis?
o Yes

o No

15 Does your bank or financial institutions provide home loans @ low cibil score below 600?
o Yes

o No