2.

REVIEW OF LITERATURE:

1. Pariswang Piyush, Himanshu negi, Navneet singh, (2016), The house has been the center and domestic device
for mankind's moral and substance development since the dawn of civilization. Adequate housing is considered
essential for human survival with dignity. Good-quality housing is crucial for performing many tasks and
without it, several activities become difficult or impossible to carry out.
The housing shortage is a universal phenomenon, with developing countries facing a more severe crisis. In
recent years, India's housing scenario has become increasingly critical, leading to the initiation of several
housing reforms. These reforms have taken various forms and manifestations, such as the reduction in social
allocation, cutbacks in public funding, and promotion of a real estate culture through partnerships between the
state and private actors.
Mortgage financing markets have the potential to stimulate affordable housing markets and enhance housing
quality in several countries. Unfortunately, India's mortgage financing markets are still in their infancy, leading
to lower homeownership rates and poor housing quality. Most of these problems stem from the central dilemma
that housing development heavily depends on financial institutions such as banks, credit corporations, and
development banks for the supply of finance to meet their daily financial needs, and resources are always
limited.

2. B.C.M.Patnaik, Ipseeta Satpathy , Nihar Ranjan Samal, (2017), The present paper aims to understand the
growth and development of the Indian home loan industry. In this regard, a secondary source is taken as the
basis. The various issues addressed include the structure of home loans, growth and development, the current
scenario, RBI directives, challenges faced by the home loan industry, and the future of the home loan industry.
The objective of the present paper is to understand the various development phases and to undertake an
empirical study on the housing loan industry.

3. Piyush Tiwari, Jyoti Rao, (2016), The issues of housing in India are the result of the lack of active
government involvement in policy and program formulation, as well as problems stemming from unplanned
urbanization, income inequality, poverty, illiteracy, and unemployment. These issues have compounded the
housing problem, leading to a shortage of 51 million homes in 2011. While India has a long history of
establishing policies, programs, and institutions to address housing issues, without adequate allocation of
resources, their impact has been minimal in mitigating the shortage. This paper argues that to address the
housing shortage in India, there is a desperate need to develop a housing framework by (i) recognizing housing
as a constitutional right; (ii) resolving issues related to unclear land titles and related claims; (iii) creating
adequate financial resources for affordable housing programs; (iv) developing responsive instruments to
facilitate affordable housing for all income groups; and (v) addressing market segmentation, which currently
serves the housing needs of only creditworthy clients while ignoring the growing demand from middle- and
lower-income groups. India must utilize its extensive network of agencies, policies, and market frameworks for
housing by providing them with adequate resources to deliver housing for all.

4. Madhu Bharti, (2019), India gained independence in 1947, the composition of its urban population has
undergone major transformations, currently standing at 32%. In response to this growth, the government has
implemented numerous schemes to address urban challenges. Initially, the government acted as a service
provider, but over time, it has allowed for a larger role for the private sector. As a result, there has been a
significant development of private housing for the better-off section of the population, with many remaining
vacant or unsold, while a substantial portion (especially in cities like Mumbai) live in slums and poorly serviced
areas. Government efforts to involve the private sector in slum redevelopment in Mumbai have been
unsuccessful, while private exclusive cities are being developed without adequate engagement and space for the
poor. The Housing for All scheme, which aims to provide affordable housing for all by 2022, is an ambitious
government initiative. To bring in private funding and improve transparency in the sector, various initiatives
have been undertaken. This paper, titled "Housing & Housing Finance in India: Recent Experience," aims to
present the changing role of the state sector in addressing urban challenges.

5. Ashish kathale, Jayesh J Jadhav, Shreeya Rajpurohit, (2022), Liquidity, as a fundamental principle of bank
lending, plays a crucial role in the success and survival of banks. However, given the evolving nature of lending
in India and the complexities associated with loan requirements, most banks find it challenging to keep up with
the changing pace. Furthermore, the Pradhan Mantri Awas Yojana (PMAY) scheme presents an opportunity for
individuals to purchase their own homes, which further increases the importance of the availability of home
loans. Commercial banks in India are obligated to adhere to the Reserve Bank of India's (RBI) norms on
Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) while maintaining profitability and keeping
competition in mind. This study examines the trend of SLR of the leading private sector banks in India - HDFC
Bank, ICICI Bank, AXIS Bank, Kotak Mahindra Bank, and YES Bank - over the past five years and its impact
on their lending capacity for housing loans. Using correlation analysis (Pearson's Correlation Coefficient) and
ANOVA test to test the hypothesis, the collected data is analyzed. The research tools used in this paper aim to
provide accurate results and a reliable framework for sound lending and improving overall efficiency. The study
also examines the impact of changes in SLR on home loan interest rates and presents the results in a tabular
form. The findings of this research aim to provide a foundation for further study on the subject and to
understand the proportionate impact of changes in SLR on a bank's lending capacity.

6. Utkarsh Gupta, Dr. Richa Sinha, (2015), The housing finance sector in India has undergone significant
changes in its structure, from being solely a government undertaking to a highly competitive sector with
numerous financing entities throughout India. This paper aims to study the various factors that influence
consumers' decisions to take out Home Loans. Specifically, the paper focuses on the Home loans offered by LIC
and SBI, conducting a comparative analysis of the factors that affect consumers' decisions. The study has
practical implications for both academicians and readers concerned with the issues related to factors influencing
buyer behavior toward Home loans. The paper presents original research, and the findings can be used as a
knowledge base for further research purposes.

7. Dr. P.S.Ravindra, Dr.P.Vishawanadham, Ch.Trinadha Rao, (2013), Housing is considered to be one of the
essential needs of mankind, with demand for shelter increasing in line with population growth and standards of
living. As a result, the need for financing the purchase of a house arose. This led to the establishment of
specialized Housing Finance Institutions, which are now known as Housing Finance Companies (HFCs). Over
the years, HFCs have stepped up their lending and contributed to the growth of the housing sector. While banks
have had slightly lower lending rates historically, housing finance companies have scored on superior customer
service, lower operating costs, long-term funding sources, and focused lending to fend off competition.
For example, during the March 2012 fiscal year, the cost-to-income ratios of HDFC and LIC Housing Finance
were 7.6% and 14.1%, respectively, compared to 44.2% in the case of banks. Housing finance companies have
steadily increased their market share over the last few years, rising from as low as 28% in March 2007 to an
estimated 34.6% as of March 2012. Top housing finance companies such as HDFC and LIC Housing Finance
have witnessed loan book growth of 22-37% during the year ended March 2012, thereby increasing their market
share.
In light of these facts, the present paper attempts to evaluate the operational performance of LIC Housing
Finance Limited and HDFC. The paper aims to analyze the factors that have contributed to the success of these
two companies in the housing finance sector. The findings of this study may provide valuable insights for
further research and knowledge enhancement for the readers.

8. John Doling, Paul Vandenberg, Jade Tolentino, (2013), The housing sector has the potential to support
poverty reduction and inclusive growth in two ways: housing construction contributes to economic output,
employment generation, and demand for related services, and improved housing raises the standard of living of
occupants. However, housing purchases are often costly, constituting the most valuable asset owned by most
households and often requiring housing finance (mortgages) to allow for purchase. This review paper explores
the links between housing and the economy, as well as between housing and housing finance. It is found that
improved housing has indirect benefits for individuals, such as better health based on improved water and
sanitation. Moreover, housing generates significant multiplier effects in terms of employment and output, with
employment created for both skilled and unskilled workers. The paper also highlights a symbiotic relationship
between housing finance and financial sector development: housing finance contributes to developing the
financial sector and is also helped by financial sector development, contributing to economic growth.

9. Suman Konnoujia, (2016), The housing finance market in India has experienced rapid growth due to the
development of housing activities, leading to the emergence of numerous players in the market. This paper aims
to identify the various challenges faced by customers when obtaining a home loan from a Housing Finance
Institution and assess their level of awareness and perception. To achieve this goal, the authors employed a
structured questionnaire and appropriate statistical tools to obtain concrete results.

10. Dr. Sukhjeet Kaur Matharu, Dr. Swaanjeet Arora, C.A Dr. Sachchidanand Pachori, (2017), In the past
decade, there has been a considerable increase in demand for home loans in India, as housing is considered a
basic human need after food and clothing. Due to the high cost of housing, families cannot fund it through their
regular income or savings, and therefore require loans that can be repaid over a longer period of time. This has
led to the growth of the home loan market in India, with numerous banks and financial institutions entering the
housing financing sector. They offer not only home loans but also loans for improvement, extension,
conversion, and construction. The home loan schemes offered by private and public banks are highly
competitive. The objective of this study is to compare and analyze the customer perception of housing loan
services of SBI, the largest public sector bank in India, and HDFC, the largest private sector bank. A sample
size of 210 respondents from the city of Indore was selected to conduct the research. The study aims to identify
the key factors responsible for the growth of the home loan market in India.

11. Priyanka Saroha, S.K.S. Yadav, (2013), The house has been a center and domestic device for the moral and
substance development of mankind since the dawn of civilization. Adequate housing is considered essential for
human survival with dignity, and without good-quality housing, many things become difficult or impossible to
do. Housing shortage is a universal phenomenon, more acute in developing countries like India where the
scenario has become critical in recent years. Housing reform initiatives have taken many forms and
manifestations in India, including the promotion of a real estate culture in close partnership between the state
and private actors, and the reduction in social allocation and public funding.
Mortgage financing markets can play a crucial role in stimulating affordable housing markets and improving
housing quality in many countries, but these are still in infancy in India. The lack of development often leads to
lower homeownership rates or poor housing quality, as resources are always too limited, and housing
development heavily depends on financial institutions such as banks, credit corporations, and development
banks for the supply of finance to meet their daily financial needs. Against this backdrop, a paper assesses the
basic nuances of the Indian financing system. Housing Development Finance Corporation Ltd (HDFC) is one of
the leaders in the Indian housing finance market with almost 17% market share as of March 2010, serving more
than 38 lakh Indian customers as of March 2011. HDFC also offers customized solutions that fit the needs of the
customers and registered a net profit of 4528.41 crore in the FY 2010-11. It also registered a net profit of 971
crore in the quarter ended September 30, 2011. LIC Housing Finance is another major player in the housing
finance sector in India, holding an 8% market share. Promoted by Life Insurance Corporation of India, LICHFL
has an extensive distribution network with a strong brand presence and was recently awarded "Consumer Super
brand 2009/10 Status" by Super brands Council. In the last financial year (ended on March 31, 2011), LICHFL
earned a net profit of 974.49 crore, compared to 662.18 in the previous FY. It also registered a net profit of `
256.50 crore in the April-June quarter of 2011.

12. Venu Addakatla, Dr. Kamatam Srinivas, (2022), The housing finance sector in India is growing rapidly,
with banks and financial institutions changing their strategies to shift towards a buyer's market. The sector has
been stimulated by liberal tax incentives and low interest rates for housing finance. However, the lack of
development in mortgage financing markets in India often results in lower homeownership rates or poor housing
quality. This paper will assess the basic nuances of the Indian financing system, analyzing the performance of
the housing finance sector with a focus on Housing Development Finance Corporation Ltd (HDFC) and LIC
Housing Finance Ltd. HDFC is one of the leaders in the Indian housing finance market, serving more than 38
lakh Indian customers as of March 2021, and offering customized solutions that fit the needs of customers. In
the fiscal year 2020-21, it registered a net profit of 4528.41 crore, and in the quarter ended September 30, 2021,
it registered a net profit of 971 crore. LIC Housing Finance is another major player in the sector, with an 8%
market share and a net profit of 256.50 crore in the April-June quarter of 2021. The paper will also identify the
problems and challenges facing the housing finance sector in India, particularly those related to limited
resources and heavy dependence on financial institutions such as banks, credit corporations, and development
banks for the supply of finance.

13. Dr. Simran Waraich, (2019), Investors all over the world analyze the economy of a country and the industry
they plan to invest in before making an investment in any stock. They also scrutinize the company's financial
statements, ratios like P/E ratio, EPS, and Dividend ratio, as well as charts to track the trend in the stock's prices
and volumes. Emotions play a big role in investment decisions as people invest based on their feelings about the
market's direction. Investors use techniques such as fundamental and technical analysis to analyze the market
before making an investment decision. This study focuses on the fundamental analysis of the housing finance
sector in India to create a sector fund and evaluate whether investors should invest in any of the companies in
this sector. The study aims to assess the housing finance sector's current situation, identify key performance
indicators, and analyze the financial performance of two major players in the sector: HDFC and LIC Housing
Finance Ltd. The study will provide insights into whether the housing finance sector is a good investment option
and will assist investors in making informed investment decisions.

14. P. Venkaiah Babu, K. Sivaji, A. Ravi Kiran, CH. Suresh, (2019), Housing is an essential need for
individuals to live in a safe and secure environment, away from the natural and artificial hazards around the
world. Since ancient times, humans have started their lives by seeking shelter and housing has become an
integral part of modern life. In India, providing housing facilities has become a challenging task for the
government as its policies need to meet the housing requirements of the people. Due to the growth of income
generation and urbanization, the housing sector has become a booming industry in the country. As a result,
banks and financial institutions have established a separate housing finance division to provide financing
facilities for the purchase, renovation, and construction of houses. This paper focuses on the concept of housing
finance and its impact on the financial system of the country, major housing finance providers, issues, and an
overview of housing finance in India.

15. S. Mahalakshmi, S. Varadaraj, (2018), The Housing Finance Sector in India is considered to be a highly
promising industry, with numerous structural factors expected to drive growth in the sector for the foreseeable
future. With the demand for home loans constantly on the rise, private and public sector banks are vying for
customers and offering better and faster services to stay competitive. As competition for home loans becomes
more intense, banks must understand customers' expectations to serve them better and gain market share. The
research questions in this study aimed to explore customer awareness and satisfaction levels regarding home
loans offered by banks, as well as the challenges customers face in obtaining home loans.

16. . Sandip Vanjari, (2022), India is considered one of the fastest growing economies in the world, with a
projected position in the top three economies by the year 2030. The country's per capita income has increased
over the past decade, making it the sixth largest economy in terms of nominal GDP and the third largest in terms
of Purchasing Power Parity (PPP). Due to the increasing demand for better living standards, the need for
residential houses has been on the rise, especially with the migration of people from rural to urban areas. The
Indian government has allowed 100% Foreign Direct Investment (FDI) to develop township development
projects. As of the year 2019-20, the Indian real estate market has attracted an investment of almost US$6.06
billion. Several Housing Finance Companies (HFC) and banks are performing well in this sector. This paper
analyzes the performance of the top five HFCs and explores further opportunities in the sector.

17. Pranoy Mondal, (2020), India is widely recognized as one of the world's fastest developing economies,
expected to be among the top three economies by 2030. This growth has been driven by increasing per capita
income and the country's status as the sixth-largest economy by nominal GDP and third-largest by Purchasing
Power Parity (PPP). With a rising standard of living, demand for residential properties has surged due to rural to
urban migration. India's government allows 100% Foreign Direct Investments (FDI) to facilitate township
development projects, and the Indian real estate market attracted nearly US$6.06 billion in investments during
the 2019-20 financial year. Several housing finance companies (HFCs) and banks are performing well in this
sector. This paper focuses on the performance analysis of the top five HFCs and further opportunities in the
sector.

18. Nadeem M. Karmali, Guillermo J. Rodriguez Ruiz, (2022), The rapid growth of affordable housing finance
companies in India that use a high-touch approach similar to microfinance to provide mortgages to households
with irregular incomes and new to credit. This paper aims to identify which lenders can be tagged as affordable
housing finance companies by using credit bureau data and assess their growth and performance. The results
show that the sector grew at an average annual compound growth rate of 27-32% between 2016 and 2020,
lending to more marginalized borrowers and doing so differently from other lenders. Although delinquencies are
higher for smaller loans, risk-adjusted lending spreads are higher for all loan sizes, suggesting that the approach
is profitable and sustainable. This lending model could be useful for other countries to explore, given its success
in India, but crucial capital market and institutional features unique to India must also be taken into account. The
paper also discusses demand-side subsidies for mortgages in India and identifies opportunities to improve the
targeting of the program.

19. Alessandra Canepa, Fawaz Khaled, (2018), The determinants of credit risk are investigated from a broad
perspective. The study focuses on the influence of factors such as housing affordability and household
indebtedness, as well as credit market developments and regulations. The analysis is conducted using a large
panel of countries, and the results indicate that housing affordability and household fragility have a significant
impact on the risk of banks' loan portfolios. Moreover, the study finds that financial institutions in countries
with higher levels of financial liberalization and less regulated markets are more susceptible to credit risk. An
examination of the conditional quantiles of non-performing loan ratios supports this finding. The study
emphasizes the importance of considering various factors that contribute to credit risk, including
macroeconomic factors, regulatory frameworks, and individual household characteristics. The results may be
useful for policymakers and financial institutions in developing strategies to manage credit risk effectively.
20. Dr. Bandaru Appala Satya Murthy, (2017), This paper examines the changes that have taken place in the
housing finance sector in India over the past decade, and highlights the concerns regarding the rapid pace of
bank credit extended to the sector. While acknowledging the importance of the housing sector for human
survival with dignity, the paper notes that banks have been financing this sector at a rate faster than can be
reasonably justified. The paper also draws attention to the international experience, where the excessive
financing of housing has resulted in financial crises and caused great damage to the stability of the banking
system. Despite the acute housing shortage in India, the development of mortgage financing markets is still in its
infancy, leading to lower homeownership rates and poor housing quality. The paper argues that the lack of
development in the financing system is a central hurdle to the growth of the housing sector. It also identifies the
reduction in social allocation, cutbacks in public funding, and the promotion of a real estate culture as some of
the manifestations of the housing reforms initiated in India.

21. Ms. Soniya Mohil, (2013), the performance of Housing Finance Companies (HFCs) in India from FY 2009-
19 to FY 2011-12 is examined by analyzing the annual publications of National Housing Bank. Owning a house
is considered a fundamental requirement and provides not only a place to live but also financial security, as it
can be used as collateral for obtaining credit. The purchase of a house is typically the most expensive transaction
in a person's life, accounting for around ten percent of their yearly earnings. Housing industry growth is seen as
a reflection of a strong economy, as the two are closely linked. Among all housing finance institutions, HFCs
play a significant role in the development of the housing sector in India. The study aims to evaluate the
performance of HFCs during the specified time period.

22. Ashok B Kencharaddi, (2021), they aims to analyze the performance of certain Housing Finance
Companies. One of the primary obstacles in the housing finance sector is access to finance. Although investing
in real estate is an easy choice for borrowing, real estate lending is more opportunity-based. In India, access to
finance for housing needs is mainly focused on higher income groups as they provide formal evidence of
income such as salary slips or income tax returns. Consequently, lower segments of the population pyramid will
remain unserved or underserved if the system is left to itself, as lenders tend to lend to sectors where lending is
the easiest. Hence, there is a need to enable access to finance for lower segments of the population pyramid in
every financial system. While banks and mortgage lenders adequately serve the upper middle-income segment,
the lower middle-income group has limited or no access to banks for mortgage finance, resulting in a substantial
demand in this segment and lack of access to finance. The highly competitive mortgage lending rates prevailing
for the upper segment of the pyramid demonstrate that they are well-served. However, there is still a long way to
go in ensuring the availability of housing finance to low-income and middle-income groups.

23. Mr. CH. Hari Govinda Rao, Dr. N. Apparao, (2012), Housing has been a cornerstone of human civilization,
serving as a center and domestic device for moral and substance development. Adequate housing is crucial for
human survival with dignity, and without it, many tasks become difficult or impossible. Housing shortages are a
universal phenomenon, and are especially acute in developing countries like India. Recent years have seen a
shift in the housing dimension in India, with the reduction in social allocation and public funding, and the
promotion of a real estate culture through state and private partnerships. While mortgage financing markets can
play an important role in stimulating affordable housing markets and improving housing quality, they are often
less developed in India, resulting in lower homeownership rates or lower housing quality. This lack of
development is due to limited resources, and the heavy dependence on financial institutions like banks, credit
corporations, and development banks for the supply of finance to meet their daily financial needs. In light of
these challenges, this paper assesses the basic nuances of the Indian financing system, and provides insights into
key issues, future outlook, and institutional performance.

24. . Manureet Riar and Dr. G.S. Bhalla, (2016), Housing is considered a significant milestone in a person's life,
as it is a valuable and expensive asset. However, the high cost of purchasing quality housing often creates a
gap between people's aspirations and their ability to finance it due to a lack of funds. To bridge this gap,
Housing Finance companies provide financial assistance to make quality housing affordable for people. Peter
King (1960) noted the importance of Housing Finance in making housing accessible.
This study focuses on the challenges faced by home loan borrowers when seeking a housing loan. The sample
size of the study consists of 983 respondents who were selected using the judgemental sampling method. To
collect data, a well-structured questionnaire was used. The study utilized statistical tools such as mean, standard
deviation, and factor analysis to analyze the data.

25. Prof. Rekha. D, Gangamma. S, (2019), Housing, being one of the three fundamental needs of life, remains
consistently among the top priorities for individuals, societies, and economies. Individuals require their own
space and protection, which is provided by the ownership of a house. The house is the basic unit of society,
providing a platform for families, which is the most important social institution, leaving an impact on an
individual for their entire life. Therefore, housing deserves significant attention when developing policies and
strategies for human development. However, the majority of the global population lives in slums, shanties, and
temporary shelters in rural areas. The lack of housing is a major obstacle in the healthy development of an
individual, society, and the nation, as the problem of space, security, privacy, and sanitation leads to social,
economic, and environmental degradation. The persistent struggle for space and homeownership leads to
individual and social complications, which are detrimental to society and the economy. Developing countries,
such as India, need to focus more on the housing sector to cater to the increasing population's housing needs and
accelerate economic growth. The housing sector has been universally utilized as an engine to drive economic
growth, as it generates employment and demand in the market. In the last few decades, authorities in India have
given significant focus to the housing sector.

1. Pariswang Piyush, Himanshu negi, Navneet singh, (2016), study of housing finance in india with reference to
HDFC and LIC housing finance ltd, IAEME publications,
2. B.C.M.Patnaik, Ipseeta Satpathy , Nihar Ranjan Samal, (2017), development of indian home loan industry,
Reseach gate publications.
3. Piyush Tiwari, Jyoti Rao, (2016), housing markets and housing policies in india, ADBI working paper series.
4. Madhu Bharti, (2019), housing and housing finance in india, IMPACT Journals.
5. Ashish kathale, Jayesh J Jadhav, Shreeya Rajpurohit, (2022), A Study of Bank Statutory Liquidity Ratio and
its Impact on Housing Loan Leading Rate in India, International Management Review.
6. Utkarsh Gupta, Dr. Richa Sinha, (2015), A Comparative Study on Factors Affecting Consumer’s Buying
Behavior towards Home Loans, IOSR Journal of Business and Management (IOSR-JBM).
7. Dr. P.S.Ravindra, Dr.P.Vishawanadham, Ch.Trinadha Rao, (2013), Operational and Financial Performance
Evaluation of Housing Finance Companies in India, International Journal of Management and Social Sciences
Research (IJMSSR).
8. John Doling, Paul Vandenberg, Jade Tolentino, (2013), Housing and Housing Finance—A Review of the
Links to Economic Development and Poverty Reduction, Asian Development Bank.
9. Suman Konnoujia, (2016), problems and prospects of housing finance in Varanasi division: a comparative
study of LICHFL & HDFC LTD, International Journal of Advanced Research in Management and Social
Sciences.
10. Dr. Sukhjeet Kaur Matharu, Dr. Swaanjeet Arora, C.A Dr. Sachchidanand Pachori, (2017), A Perceptual
Study of Customers regarding Home Loan Services of SBI and HDFC Banks, Shabd Braham.
11. Priyanka Saroha, S.K.S. Yadav, (2013), An Analytical Study of Housing Finance in India with special
reference to HDFC and LIC Housing Finance Ltd, Lokavishkar International E-Journal.
12. Venu Addakatla, Dr. Kamatam Srinivas, (2022), development, growth and policy implications of housing
finance in india: an evidence from HDFC and LICHFL, IAEME publications.
13. Dr. Simran Waraich, (2019), fundamental analysis of housing finance sector in india, sucharitha
publications.
14. P. Venkaiah Babu, K. Sivaji, A. Ravi Kiran, CH. Suresh, (2019), Evaluation of Housing Finance (A Special
Research with Public and Private Sector Banks in A.P), International Journal of Recent Technology and
Engineering (IJRTE).
15. S. Mahalakshmi, S. Varadaraj, (2018), A Study on Home Loan Services Offered By Commercial Banks with
Special Reference to Coimbatore District, ijresm.
16. Sandip Vanjari, (2022), A study of housing finance companies (HSP’s): performance analysis in Indian
economy, IJRAR.
17. Pranoy Mondal, (2020), critical analysis of housing finance sector in india with special reference to the
assessment of housing shortage, research gate.
18. Nadeem M. Karmali, Guillermo J. Rodriguez Ruiz,(2022), The Growth and Performance of Affordable
Housing Finance Lenders in India, Policy Research Working Paper 10038.
19. Alessandra Canepa, Fawaz Khaled, (2018), housing and housing finance and credit risk, international
journal of financial studies.
20. Dr Bandaru Appala Satya Murthy, (2017), A Study on Housing Finance in India with Special Reference to
LIC Housing Finance Limited, ijtsrd.
21. Ms. Soniya Mohil,(2013), Performance of Housing Finance Companies in India, global research analysis.
22. Ashok B Kencharaddi, (2021), Issues and Challenges of Housing Loans in India – A Comparative Study,
JETIR.
23. Mr. Ch. Hari Govinda Rao , Dr. N. Apparao, (2012), An Assessment of the Indian Housing Finance System:
Crucial Perspective, IOSR-JBM.
24. Manureet Riar and Dr. G.S. Bhalla, (2016), Problems Faced by the Housing Finance Borrowers: A study
Conducted in Punjab, IJHSSI.
25. Prof. Rekha. D , Gangamma. S , (2019), A Study on Housing Loan Evolution and Performance in India,
IJTSRD.

3. INDUSTRY PROFILE
INTRODUCTION:
The Housing Finance Company is yet another sort of non-bank financial institution that focuses on financing the
purchase or building of homes, including the development of land parcels for new home construction. The
National Housing Bank controls the Housing Finance Corporation. As long as the fundamental requirements
stated in the Companies Act of 1956 are fulfilled, any non-banking finance company may function as a housing
finance company.
• From the National Housing Bank, the business should receive a certificate of registration (COR) (NHB).
According to the National Housing Bank Act of 1987, it is illegal for a company to perform such business
without a COR, and the NHB has the authority to order the winding up of such a company.
• The company's main line of business should be offering housing finance, whether directly or indirectly.
• The business must have a minimum of Rs 10 crore in net owned funds.

The following requirements must be met by the business in order to be registered as a housing finance company
once the basic requirements have been met:
• The affairs of the housing finance company must not be detrimental to the interests of the current and future
depositors.
The management of the company should not be detrimental to the public interest or to the interests of its
depositors. The company shall be in such a situation that it is able to meet the full claims of its present as well as
future depositors as and when these accrue.
• Better revenue prospects and a sufficient capital structure should be present in the Company.
The certificate of registration shall not be prejudicial to the operation and growth of housing finance sector of
the country.

GROWTH AND SCOPE

About 67% of inhabited homes in India, as reported by the 2011 census, were found there. Additionally, 87% of
families resided in owned housing, demonstrating a significant bias in favour of home ownership. Additionally,
the typical household had five members and approximately 73% of households resided in dwellings with fewer
than two rooms, which indicates a limited amount of living space. India has a large young population and is the
second-most populous country in the globe, which suggests a high demographic dividend. In recent years, the
movement of people from rural to urban regions has increased. This fosters the perfect environment for a
supernormal increase in housing demand, which will be largely met by housing finance.
India's housing finance sector experienced rapid expansion, with the overall loan book for all housing loans
growing at a CAGR of 16.72%. (2012-17). This growth, which was almost twice as fast as the nation's total
credit growth, indicates a promising future for the housing finance industry. Rapid economic growth, declining
interest rates, and a low housing area per inhabitant in comparison to developed economies drove the overall
loan performance growth. So, as a result of rapid economic growth, a sizable middle class was created, and
people moved to large cities. Due to the growth of housing finance and the rise in per capita income, people's
ability to borrow money grew.

In India, the housing finance market is dominated by the leading public and private sector banks and non-
banking housing finance companies such as HDFC Ltd., LIC Housing Finance, Can Fin Homes, PNB Housing
Finance and Dewan Housing Finance. The market has reached a stage of the intense competition where each
player is competing for the market share.
Stability of the housing loan market
Further, in the wake of a favourable backdrop of the Indian economy, several initiatives were launched by banks
and housing finance companies to expand their loan book. The fall in interest rates (2013) from the high
encouraged the demand for home loans and resulted in a larger growth. This was positively supported by
healthy internals in the industry with very strong performance seen on the net and gross non-performing assets.
The gross non-performing asset (GNPA) as a percent of total advance data from the top 5 housing finance
companies indicate a stable to declining trend. In addition, against the same, the banking sector as a whole has
been experiencing a significant rise in the GNPA to total advances from FY 2013 to 2017 period. The overall
total GNPA for the banks in India increased by more than four times. This suggests that the housing loan market
is more stable and housing finance companies are lending to borrowers with a good repayment capacity. The
loans are backed by houses, these can be easily auctioned in an event of a default. This enabled companies to
recover their funds with a good turnaround time. The financial institutions usually require a sizeable down
payment, which is dependent on the credit rating of the borrower and help in the maintenance of a low and
stable GNPA level. 
The Indian government’s initiative to support the affordable housing segment is another step in the right
direction for the industry and should further drive the growth as a whole. However, a bit of caution needs to be
exercised particularly for sub INR 200,000 loans. The government’s push of ‘Housing for All’ is targeting low-
income groups though the ability of these borrowers to service the debt is yet to be examined. A substantial rise
in home loans for this initiative could end up increasing the NPAs of housing finance companies. Thus, banks
need to be prudent and ensure that lending is conservative and loans should be disbursed to individuals with a
good credit rating to minimize NPAs.
The overall growth of housing prices in India is another positive attached to the growth of the industry. While a
very high increase in prices lead to speculative buying and creates headwinds for the industry in the long-run,
the growth in India has primarily been respectable. Few of the overheated markets also witnessed time-wise
correction in the past 1 to 2 year and provides additional stability for the housing market participants including
banks, construction and real estate companies as well as buyers. In the four-year period from June 2013 to June
2017, the correlation between housing prices and housing finance market size stood at 0.98. 

PHASES
1992-2002
OECF (now JBIC) provided the organisation with a financial assistance of Yen 2,970 billion, and it then started
a programme for funding housing infrastructure. In addition, it issued unsecured bonds and launched refinance
plans for slum redevelopment initiatives. The Golden Jubilee Rural Housing Finance Scheme (GJRHFS) was
introduced along with guidelines for prudential standards for HFCs. GJRHFS's financing was supplied by ADB
in 1997–1998 and 1998–1999 in the form of tax-free bonds. Additionally, the organisation published guidelines
for HFCs' entry into the insurance industry and debuted the first residential mortgage-backed securitization issue
in the nation. In addition, a refinancing programme was established for the Gujarat earthquake-affected regions'
reconstruction of residential buildings.

2002-2012

By disbursing more than 12,000 crore, the National Housing Bank (NHB) has reached a record level. It has
worked with KfW in Germany to encourage energy-efficient housing, and it has won numerous awards for its
efforts to improve rural housing and reduce poverty. More regional representative offices have been launched by
NHB, and the Asia Pacific Union for Housing Finance has been created. New programmes like the RML
Counseling Program, NHB SUNIDHI, and NHB SUVRIDHI have been introduced, and the Housing
Information Center has been created. NHB has signed MOUs with UNHABITAT for water and sanitation
initiatives and has started studies on pro-poor housing finance. For neglected groups in society, it has also
created new goods, such as the Reverse Mortgage Loan for Senior Citizens, Productive Housing in Rural Areas,
and Refinance for Top-up Loan for Indira Awas Yojana Beneficiaries. NHB has established a Fraud
Management Unit and given RMBS a corporate guarantee. A Liberalized Refinance Scheme for Housing Debt
has also been put in place.

2012-2022

The National Housing Bank (NHB) disbursed a total amount of ₹19,312.87 crore for the FY 2021-22, out of
which ₹ 450 crore was provided under SRF 2021, and ₹ 344.03 crore was provided under Promoting Green
Housing Refinance Scheme (PGHRS), and ₹ 7,645.65 crore was provided under AHF and ₹ 10,873.19 crore
under Regular Refinance facilities of NHB. During this fiscal year, the Bank carried out on-site inspections of
80 HFCs based on the CAMELS approach. The Bank also disbursed subsidies under various schemes, such as
PMAY-CLSS and RHISS, benefitting thousands of households. NHB introduced several new initiatives such as
the Housing Finance Repository (HFR) portal, Automated Data Flow System (ADF), and Online Inspection
Report System to streamline its operations. The Bank also published the NHB RESIDEX to track the movement
in prices of residential properties in 50 select cities on a quarterly basis. In addition, the Bank organized various
events and activities related to outreach and development of financial services related to “Janta se Judna-
Housing and Housing Finance Sector” across India. Overall, the Bank reported an increase in its total assets,
refinance disbursements, and refinance outstanding.

TOP 10 PLAYERS

 HDFC housing finance

HDFC Housing Finance offers different types of home loan products such as plot loan, rural housing loan, home
improvement loan, and home extension loan among others. The interest rates for home loan starts from 8.65%.
The home loan schemes are available for salaries and self-employed resident Indians in the range of 18-65
years.

 LIC Housing Finance Limited

LIC Housing Finance offers home loans at attractive interest rates for Indian residents, Non-Resident Indians
(NRIs), and pensioners. You can avail loan for purchase, construction, extension, house repair, plot purchase,
and top up loan. LIC Housing Finance offers benefits such as flexible repayment periods, quick loan processing,
zero processing fee, zero pre-closure charges, and no partial pre-payment charges.

 Indiabulls Housing Finance Limited

Indiabulls Housing offers instant home loan approvals at competitive interest rates for a tenure of up to 30 years.
It offers benefits such as zero pre-payment charges, flexible tenure options, and zero pre-closure, among others.
The interest rate ranges from 8.95% to 13.00% p.a. The processing fee is 0.50% to 1% of the loan amount.

 L&T Housing Finance Limited

L&T Housing Finance offers home loan at attractive interest rates for construction, house improvement, and
house extension. The loan repayment tenure is up to 20 years and the amount ranges from Rs.3 lakh to Rs.10
crore. You can avail home loans up to 90% the property value. L&T Housing Finance offers benefits such as
quick and transparent loan processing, instant online loan approval, attractive interest rates, minimal
documentation, multiple repayment options, and zero pre-payment charges.

 PNB Housing Finance Limited

PNB Housing Finance offers home loan at competitive interest rate for resident Indians as well as non-resident
Indians. It offers home loans under different schemes that are aimed at government employees, general public,
and others.

 IIFL Housing Finance Limited

IIFL Housing Finance Limited offers home loans with attractive interest rates that start at 8.20% p.a. onwards.
The maximum repayment tenure is 20 years. Any Indian citizen between the age of 18 and 75, both self-
employed and salaried, as well as Non-Resident Indians (NRIs) are eligible for the home loan. The company
provides a wide range of home loan products such as balance transfer, home improvement, etc. There is also a
special loan product, Swaraj Home Loan, for those individuals without formal income documents.

 GIC Housing Finance Limited

GIC Housing Finance Limited provides home loans that range from individual housing loans and composite
loans to balance transfer, home extension, and renovation/repair loans. Interest rates start at 8.10% p.a. There is
free accidental death insurance and free property insurance provided along with the home loan. Loan application
and approval can be done online with minimal documentation.

 Sundaram Home Finance

Sundaram Home Finance offers home loan products with attractive interest rates for both salaried and self-
employed individuals who are between the age of 18 to 65 and are Indian citizens. There are attractive interest
rates for women applicants. The home loan products that are offered include plot loans, home improvement
loans, home extension loans, top-up loans, takeover loans, and loan against property.

 Tata Capital Housing Finance Limited

Tata Capital Housing Finance Limited offers home loans starting at 8.95% p.a. Eligible individuals are those
who are salaried or self-employed, with a CIBIL score of above 750, and between the age of 24 and 65 (at the
time of loan completion). NRIs are also eligible for the home loan. The maximum home loan amount is Rs.5
crore with a maximum repayment tenure of 30 years. Up to 80% of the property value can be availed as the
home loan. The company also offers flexible repayment options such as a standard EMI plan (for those whose
income will remain constant throughout) and a step-up flexi EMI plan (for those whose income is expected to
increase at regular or frequent intervals).

 Aavas Financiers Limited

Aavas Financiers Limited offers home loans that start at Rs.1 lakh with the maximum home loan amount
depending on your income and credit history. The repayment tenure is 20 years for the self-employed, 25 years
for the salaried, and 30 years for government/private sector/PSU employees (who have a minimum salary of
Rs.35,000 per month). The home loan products that are offered include loans for home purchase, land purchase,
home construction, home improvement, home loan balance transfer, and loan against property. The loans can
also be used to buy resale properties from recognised authorities or builders.

MARKET SHARE

https://www.moneycontrol.com/stocks/marketinfo/marketcap/bse/finance-housing.html

GUIDELINES
The National Housing Bank (NHB) issues the following guidelines to Housing Finance Companies (HFCs)
which are housing finance institutions within the meaning of clause (d) of Section 2 of the National Housing
Bank Act, 1987 for their growth on sound lines and to be healthy, viable and cost effective.
These guidelines are applicable to such of those HFCs who desire to avail of equity participation from NHB.

These guidelines shall be deemed to have come into effect from October 14, 2004.

ORGANISATION AND MAIN ACTIVITY

1. A HFC who desires to avail of equity participation from NHB under the scheme of NHB, shall among others:

 be a public limited company.

 Provide long term finance for construction or purchase of houses in India for residential purposes.
 Invest 75% of “capital employed” by way of long term finance for housing.

2. Explanation for the purpose of these guidelines, “capital employed” means and includes:

 paid up capital of the company and its free reserves less intangibles;
 long term borrowings;
 deposits with maturity period of five years and above collected from the public and others, excluding the
amount required to be kept or maintained in specified assets as stipulated in Section 29B of the National
Housing Act, 1987, as amended from time to time.

MINIMUM PAID-UP CAPITAL AND LISTING REQUIREMENTS

 HFCs should have a minimum paid up capital of not less than Rupees ten crores inclusive of equity
support of NHB or such other amount as may be stipulated from time to time by NHB and/or the
Securities and Exchange Board of India (SEBI) for listing shares on recognized stock exchanges,
whichever is higher. Minimum promoters’ contribution in the share capital will always be the same as
applicable to a company making an issue to the public.
 NHB’s participation in equity shall be at par and restricted to 25% of the paid up capital of the HFC.
However, where the HFC is promoted with the main object of catering to the home loan requirements
of EWS/LIG/Rural segments of the Society, NHB’s participation can be up to 50% of the paid up
capital. In the case of rights issues, NHB can consider subscription even at premium. HFCs should
conform and/or comply with all other rules, regulations, instructions, guidelines or orders issued by
NHB or any other authority empowered in that behalf.
 The promoters of the HFCs seeking equity support from NHB shall have to execute an undertaking in
favour of NHB to buy-back the shares held by NHB in the HFC in case its shares are not listed on a
recognized stock exchange in India. The shares to be bought back shall be valued in accordance with
the Method of Valuation given in Para 8.2. of these Guidelines. With a view to enlarge equity base as
well as public participation in housing finance activity, it is desirable that HFCs get their shares listed
on recognized stock exchanges (s) in India at an early date. Where NHB has participated in the equity
share capital of a HFC, it may also advise the HFC to get its shares listed on a recognized stock
exchange and such company shall comply with the said requirement. Where HFC did not get its share
listed even after being so advised by NHB, NHB may invoke the buy-back undertaking given to it by
its promoters.

SUBMISSION OF APPLICATION:
 HFCs desirous of financial support from NHB by way of equity participation shall submit their
applications in such form and furnish such information/statements etc , as may be required by NHB for
its consideration.

INVESTMENT IN LAND AND BUILDING

 HFC’s investment in land and building shall not exceed the ceiling as prescribed in the Housing
Finance Companies (NHB) Directions, 2001 as amended from time to time.

BOARD OF DIRECTORS
 NHB shall have the right to appoint two Directors on the Board of Directors of all HFCs having equity
participation from NHB. However, in case of a HFC having equity participation from a bank/financial
institution/Government and having on its Board of Directors two persons as nominee directors of such
bank/financial institution/Government, NHB shall appoint only one Director as its nominee on the
Board of such HFC. Articles of Association of HFCs should contain necessary provision for
 appointment of nominee directors. Appointment of Chief Executives of HFCs should be made in
consultation with the NHB.

CREDIT RATING
 NHB may stipulate minimum equity grading of a HFC where deemed appropriate.

SHAREHOLDER’S AGREEMENT
 HFCs shall enter into a shareholder’s agreement with the NHB containing covenants regarding
substantive issues like undertaking of new business, amalgamation, mergers, takeovers, floatation of
subsidiaries, investment in subsidiaries, appointment of nominee directors etc. The covenants will also
provide that if at any time in future, the promoters want to buy the shareholding of NHB, they should
offer a price which is not less than the value arrived at as mentioned in paragraph 8.2 of these
Guidelines. NHB may also disinvest its shareholding in entirety or part thereof in terms of paragraph
8.1 at a price as determined in terms of paragraph 8.2 of these Guidelines.

DISINVESTMENT OF NHB’s EQUITY HOLDING

 NHB may disinvest its equity share holding in housing finance companies in entirety or part thereof
after the expiry of a period of Five Years from the date of its subscription or such early time as NHB
may deem fit.The disinvestment of the equity share holding of NHB shall be at a price not less than the
value to be determined as per the methodology indicated below:

Method of Valuation of shares:

The value of the share shall be determined by taking the average of the values of the share based on the
following three methods:

 Valuation of shares based on Profit Earning Capacity Value (PECV) method. Under PECV method,
weighed average of profit after tax for the last three years is divided by the no. of equity shares and is
capitalized at certain rate. Accordingly,

Value of an equity = Weighed PAT for the last 3 years/

(No. of Equity Shares x Capitalization Rate)

Weights to be used may be 3,2,1 (from current year to previous years, in that order). The capitalization rate will
be decided from time to time depending upon the market conditions at the time of review of Equity Participation
Policy every year. For the current year, the same shall be 10%.

 Valuation of shares based on P/E multiple method: Under this method, value of a share is the product of
weighted EPS for the last three years and P/E multiple. P/E multiple of the housing finance industry may be
estimated on the basis of average market price and average EPS of listed HFCs as per the published
information (Newspapers/Financial Magazines) as available at the time of disinvestment.

Weights to be used may be 3,2,1 (from current year to previous years, in that order.

 Net asset value/intrinsic value of shares : Uunder this method, value of a share shall be determined based on
the weighted average of the NAVs for the last three years. Weights to be used may be 3,2,1 (from current
year to previous years, in that order).

Mean Value of the Share – (Value based on PECV+Value based on P/E Multiple+NAV)/3.

OTHERS
 The participation in equity by NHB shall be at its sole discretion and shall not be claimed as a matter of
right. The above guidelines are in supercession of the Guidelines issued by NHB on March 01, 2003 any act
or deed done, action taken, refinance or other facilities extended thereunder, shall continue to be governed
by said guidelines as if these guidelines had not been superceded.
4.0 COMPANY PROFILE

LIC HOUSING FINANCE LTD

EVOLUTION
One of the biggest housing finance companies in India, LIC Housing Finance Ltd., offers long-term financing
for the purchase or construction of a home or apartment for residential use as well as for business or personal
requirements. LICHFL also provides financing to builders and developers working on the construction of homes
or apartments for domestic use as well as to professionals for the purchase of equipment and the building of
clinics, nursing homes, diagnostic centres, and office space. In addition to an overseas representative office in
Dubai and Kuwait to serve non-resident Indians in the GLCC nations, the business has 9 regional offices, 24
back offices, 282 marketing offices, and other locations throughout India. The Investment Manager of LICHFL
Urban Development Fund, a Venture Capital Fund that concentrates on income-producing micro infrastructure
assets and middle-class homes, is LICHFL Asset Management Company. For the LICHFL Urban Development
Fund, which is run by LICHFL Asset Management Company Limited, Trusteeship functions are provided by
LICHFL Trustee Company Private Limited. For the purpose of establishing and running supported community
living facilities for senior citizens, LICHFL Care Homes Limited was founded. It has created Care Homes as
part of two projects in Bengaluru, and another is almost finished in Bhubaneswar. Incorporated on June 19,
1989, LIC Home Finance Ltd. was supported by LIC of India and went public in 1994. It is approved by
National Housing Bank and traded on the Bombay Stock Exchange Limited and National Stock Exchange
(NSE) (BSE). In 2001, the company implemented the flexi-fixed scheme with fixed interest for the first five
years and variable interest after that, under the new programme Griha Vikas. The company's lending portfolio
reached Rs 1 lakh crore in 2015, and its asset base reached Rs 1.5 lakh crore in 2017. The company invested Rs.
1800 crore in three tranches of Tier 2 capital during the 2020–21 fiscal year. To further improve the distribution
network, 2565 new Marketing Intermediaries were hired and the opening of two new offices was started in the
years 2021–2022.

MANAGEMENT OF THE COMPANY

Shri M. R. Kumar
Chairman

Y. Viswanatha Gowd
Managing Director & CEO

Sudipto Sil
Chief financial officer

Varsha Hardasani
Company Secretary & Compliance Officer

LIC Housing finance limited is today the biggest housing finance company in India. It came into being on
19thJune 1989 under the Companies Act. This company was firstly promoted by LIC OF INDIA but later came
into public sector in 1994. The company is listed with National Housing Bank and has been listed in National
stock exchange (NSE) and Bombay stock exchange (BSE). The shares of the company can only be traded in
demat form.

The company possesses the biggest marketing network in India. The company has its corporate and registered
offices in Mumbai. The company has 7 Regional offices,16 Back-office and 209 marketing units. The company
has also set up its office in international terrain like Saudi Arabia, Qatar, Bahrain, and Dubai to look after the
needs of it NRI customers.

GROWTH

One of the biggest housing finance companies in India, LIC Housing Finance Limited (LICHFL), has a
significant influence in both urban and rural areas. Since its incorporation as a subsidiary of the Life Insurance
Corporation of India (LIC) in 1989, the business has steadily expanded to establish itself as a reputable brand in
the housing finance industry. To meet the various requirements of its customers, LICHFL has grown the range
of products it offers. The business provides a variety of home loan products, including loans for buying a home,
loans for building a home, loans for remodelling a home, and loans for adding on to an existing home.
Additionally, it offers project financing, lease fee discounting, and loans secured by real estate.

LICHFL has been steadily growing and spreading its activities all over the nation. The business had a network
of 306 marketing locations, 12 regional offices, and 23 back offices as of March 2021, covering all Indian states
and union territories. In order to make the acquisition of homes easier, it has partnerships with more than 3,000
builders and developers.

LICHFL recorded a net profit of Rs 2,712 crore for the fiscal year 2020–21, an increase of 16% from the year
before. The company's assets under management (AUM) were worth Rs 2,24,366 c, while its total income grew
by 11% to Rs 19,098 c.

Looking ahead, LICHFL is in a good situation to gain from India's rising demand for affordable housing. The
business has made plans to introduce a brand-new loan product for the affordable housing market that will serve
borrowers with incomes up to Rs 6 lakh annually. It is also looking into ways to grow its business abroad, with a
particular emphasis on the Middle East and Africa.

In order to enhance customer experience and streamline processes, LICHFL is also investing in digital
initiatives. In addition to developing a digital onboarding platform to streamline the loan disbursal process, the
company has released a mobile app for loan applications.

Overall, LICHFL has advanced significantly in the home finance industry and is well positioned for future
expansion. With a well-known brand, a broad range of products, and an extensive network of offices and
partnerships, the business is well-positioned to take advantage of India's expanding home finance market.

OUR PRODUCTS
DEPOSITS

Sanchay Public Deposit Schemes

 Deposit scheme is available for Individuals, limited and private limited companies, Non Resident
Indians and Cooperative societies and Association of persons.
 Minimum deposit of Rs.10000 and additional increment should be in multiples of Rs.1000.
 The interest payable is compounded annually on 31st March.
 Rate of interest varies based on the term of deposits.
 The senior citizens are paid additional 0.10% on the deposits of up to Rs.50000 and 0.25% on deposits
of Rs.51000 and above.

LOANS

LOANS AGAINST PROPERTY FOR INDIVIDUALS

 Loans is provided for the following purposes

o Children’s education and marriage.
o Business expansion
o Purchase of property
 The minimum amount of loan is Rs.200000.
 The term of loan is maximum 15 years.
 The loan is repayable in monthly installments.
 Loans are provided against
o The equitable or registered mortgage of the property. The property should not be more than 35
years old.
o Demand promissory notes.
 The upfront fees is 0.01%+ service tax as applicable
 The loan is only for resident individuals.

LOANS AGAINST RENTAL SECURITIZATION

 This loan is provided to the listed and unlisted companies against the security of the Commercial
properties owned by them like office premises or land or property to be purchased by them.
 Loan can be utilized for the purpose of existing loans, takeovers or for the purchase of fixed assets.
 Loans are provided only for the properties which are fully completed.
 Loans are given for the term of 10 years.

LOANS AGAINST PROPERTY NON RETAIL LOAN

  This loan is provided to the listed and unlisted companies against the security of the Commercial
properties owned by them like office premises or land or property to be purchased by them.
 Loan can be utilized for the purpose of existing loans, takeovers or for the purchase of fixed assets.
 Loans are provided only for the properties which are fully completed.
 Loans are given for the term of 10 years.

LOAN AGAINST SECURITIES

 Loans are provided against the deposits made in nationalized banks, deposits in post-offices like NSC
certificates, KisanVikas Patra etc. and LIC policies having surrender value.
 Loan is provided only upto the 95% of the face value of the securities and the surrender value of the
policies.
 Minimum loan amount given is Rs.50000
 Maximum term for the loan is upto 20 years.
 The loans can be clubbed together with the other home loans taken.

LOANS TO PROFESSIONALS

 Loans are provided for purchasing, extending, modifying of the commercial properties owned by them
for their professional practices and can be used for buying any sort of equipments.
 Resident Indian professional are only eligible for this loan, companies or partnership firms associated
with the professionals are also eligible for the loan.
 The term of loan is of 10 years.
 Payment mode of the loan is through EMI.
 The securities that can be given against the loans are:
1. Equitable or registered mortgage of the property against which the loan is taken.
2. Demand promissory notes.
3. Guarantee of the Directors or the partners of the company or the firms.
4. In case of the companies the R.O.C is also required.
5. Additional securities are also given if the equipments of the firm is also financed.
6. Interest rate has to be confirmed from the nearest centers

LIC HOME LOANS TO INDIVIDUALS

This loan is given to the individuals for the PURCHASE/CONSTRUCTION/EXTENSION of a new or existing

property.

 The minimum loan amount is Rs.100000

 The loan is sanctioned according to the property cost.

1. 85% of the total cost of the property including stamp-duty and registration charges upto the loan of 20
lacs.
2. 80% of the total cost of the property including stamp-duty and registration charges upto the loan of
20lacs-75 lacs.
3. 75% of the total cost of the property including stamp-duty and registration charges for the loan above
Rs.75 lacs.
  Maximum term of loan is 30 years for salaried and 20 years for the self-employed.
 Repayable mode is through EMI.
 The interest rate has to be confirmed from the nearest office.
 The upfront fees have to be confirmed as it is revised time to time.

HOME LOANS TO NON-RESIDENT INDIANS

 This facility is available to the salaried individual having the status of NRI/PIO for
PURCHASE/COSTRUCTION /EXTENSION of a new or an existing property.
 The minimum loan amount is Rs.100000
 The loan is sanctioned according to the property cost:

1. 85% of the total cost of the property including stamp-duty and registration charges upto the loan of 20
lacs.
2. 80% of the total cost of the property including stamp-duty and registration charges upto the loan of
20lacs-75 lacs.
3. 75% of the total cost of the property including stamp-duty and registration charges for the loan above
Rs.75 lacs.

 Maximum term of loan for professionals is 15 years and for others is 10 years.
 Repayable mode is through EMI.
 Interest rates have to be confirmed from nearby centers.
 Upfront fees is payable at prevailing rates.

HOME LOANS TO PENSIONERS

Loans under this scheme are given to the pensioners before retirement for purchasing construction or extension
of a house or a flat. The person should be 50 years or above of age and is governed under a pension scheme on
retirement. The loan term is 15 years or 70 years of age whichever is earlier. An undertaking letter has to be
given for the 30% of the loan or the amount decided by the Area officer which will be paid out of the retirement
benefits. Loans can also be availed after retirement for the same purpose if the person has a stable income
throughout his life can apply for this loan. The loan has to be paid before 70 years of age. And the loan requires
a guarantor.

AWARDS

1. In the year 2016:

 Received the Best HFC Award from ABP News

 Received the Outlook Money Awards for Best HFC

 Won the Asia Pacific Entrepreneurship Award

 Won the Power Brands Award by Franchise India

2. In the year 2017:
 Won Best HFC award by Outlook Money

 Won BFSI Best CEO Award from Business Today

3. In the year 2019:

Voted as the Brand of the Decade 2019 by BARC Asia
4. In the year 2020:
 Received the Data Quality Award by Transunion CIBIL in the Housing Finance Company
category

 Awarded the ‘Best Housing Finance Company’ at the National Real Estate Congress
Leadership & Awards, 2019

 Featured in the Top 10 Most Consistent Wealth Creators according to the Motilal Oswal 24th
Annual Wealth Creation Study, 2019

HOUSING DEVELOPMENT FINANCE CORPORATION

[HDFC].

EVOLUTION:
Indian publicly traded bank HDFC Bank Limited offers a range of banking and financial services, including
retail banking, wholesale banking, and treasury activities. Its corporate centre is in Mumbai, and it has four
branches for foreign wholesale banking in Bahrain, one in Hong Kong, two representative offices in the UAE,
and one in Kenya. The subsidiaries of HDFC Bank are HDFC Securities Limited (HSL) and HDB Financial
Services Limited (HDBFSL). All local and foreign cardholders of Visa/MasterCard, Visa Electron, Maestro
Plus, Cirrus, and American Express Credit/Charge can use its ATM network.

On August 30, 1994, Housing Development Finance Company Ltd. established HDFC Bank. The bank opened
its first office, the Ramon House Churchgate branch, on January 16, 1995, when it began operating as a
Scheduled Commercial Bank. An initial public offering (IPO) of Rs. 50 crore by HDFC Bank in March 1995
attracted a record-breaking 55 times oversubscription. On May 19, 1995, the Bombay Stock Exchange and on
November 8, 1995, the National Stock Exchange both launched HDFC Bank.

When Times Bank Ltd, owned by Bennett Coleman & Co./Times Group, merged with HDFC Bank in 2000,
HDFC Bank increased its business. This was the country of India's first merger of two modern private
institutions. In 2001, HDFC Bank began its credit card operation after being the first bank to introduce an
international debit card in collaboration with VISA (Visa Electron). The Central Board of Direct Taxes (CBDT)
and the RBI approved HDFC Bank as the first private sector bank to take direct taxes.

The Bank expanded by 77 new branches in 2007–08, bringing the overall number of branches to 761. The
number of ATMs increased from 1,605 to 1,977 as a result of the addition of 372 additional ATMs. In 2008–09,
HDFC Bank increased the number of its branches from 761 in 327 cities to 1,412 in 528 Indian towns.

In conclusion, HDFC Bank Limited has made a name for itself in the banking sector as one of the leading
financial organisations in India. Its extensive selection of goods and services, extensive branch and ATM
network, and subsidiaries enable it to offer its customers top-notch customer support.

MANAGEMENT OF THE COMPANY

Mr. Atanu Chakraborty,

Chairman

Mrs. Renu Karnad,

Non-Executive Director

Dr. (Mrs.) Sunita Maheshwari, 

Independent Director
Mr. Sashidhar Jagdishan, 
Managing Director & CEO

Mr. Kaizad Bharucha, 

Executive Director

Srinivasan Vaidyanathan
Chief Financial Officer

https://www.hdfcbank.com/personal/about-us/overview/board-of-director

GROWTH:

 1994
Housing Development Finance Corporation (HDFC) received an in-principle approval
from the RBI to set up a private sector bank Incorporated in August 1994 as HDFC Bank
Limited.
 1995
Banking license received in January 1995 First corporate office and branch opened IPO
oversubscribed 55 times Listed on BSE and NSE.
 1997
Maiden dividend announced.
 1997-98
New logo launched.
 1999
 Launched first international Debit Card in India in association with Visa International
Began its digital journey by launching online real-time NetBanking. First ever mega
merger in Indian banking industry – Times Bank merged with HDFC Bank.
 2000
A Bank with many firsts First Bank to launch Mobile Banking in India Launched first
SMS–based Mobile Banking.
 2001
Overseas listing Listed on New York Stock Exchange (NYSE) Became the first private
bank authorised to collect income tax.
 2002
ISO 9001 certification for depository and custodial services.
 2003-04
First bank in India to offer Credit Card in 100+ cities Touched 10 Lakh users.
 2006
Two new cards launched exclusively for women on International Women’s Day.
 2008
Launched first overseas commercial branch in Bahrain Merged with Centurion Bank of
Punjab in one of the largest mergers in the Indian banking industry.
 2010
Launched 40% faster ATMs – first of its kind in Asia.
 2011
Growing market leadership Expanded customer base to become market leaders in Auto
Loans, Personal Loans and Credit Cards.
 2012
Launched MobileBanking App in Hindi Launched premium Credit Cards for doctors
Launched a nation-wide sports initiative – Josh Unlimited, for employees.
 2013
The Bank’s Sustainable Livelihood Initiative (SLI) crosses a milestone, impacting 20
Lakh households.
 2014
Sustainability established as a core value of the Bank Created a new Guinness World
Record for organising the largest single-day blood donation drive Became market leader
in issuing Credit Cards in 2013-14 with 55 Lakh+ Cards.
 2015
Launched its sonic branding i.e. Musical Logo (MOGO) to be used across multiple touch
points Launched PayZapp, India’s first 1-click mobile-pay solution Launched 10-second
personal loan disbursement in the retail lending space Concurrent QIP issue and Follow-
on offering `9,723 Cr.
 2016
Launched Missed Call mobile recharge for prepaid mobiles ATMs turned to LDMs (Loan
Dispensing Machines) Launched SmartUp programme for start-ups.
 2017
Introduced AI Launched IRA (Interactive Robotic Assistant) and became the first bank in
India to introduce a humanoid for customer service Introduced EVA chatbot - India’s first
AI-based chatbot to provide customer service Launched SmartUp Zones for start-ups
Launched EasyEMI on Debit Cards Launched an all-in-one DigiPOS machine.
 2018
Next-gen MobileBanking App launched Driving rural empowerment Signed MoU with
government to financially empower 2 Lakh rural Indian villages through CSCs.
 2019 Voted no.1 in India by customers in Forbes World's Best Banks Survey BSE inks
pact with the Bank to give a boost to the start-up platform 1 Million+ units of blood
collected via HDFC Bank Parivartan’s Blood Donation Drive over a period of 12 years,
primarily from employees Opened 5,000th branch Marked the start of its 25th year.
 2020
Ranked India’s most valuable brand (for the seventh consecutive year) by BrandZ Report
Launch of HDFC Bank Millennia range of cards First ever leadership change (new MD &
CEO takes over) First-of-its-kind product launch: KGC-Shaurya card for armed forces
Launch of contactless, consentbased customer on-boarding via video KYC facility
Deploying mobile ATMs during the lockdown Launched ‘The HealthyLife’ programme
with Apollo Hospitals for customers and employees.
 2021 Embarked on Project ‘Future Ready’ Pledged to become carbon neutral by 2031-32.
 2022 HDFC Bank and HDFC Ltd. announce transformational merger.

PRODUCTS

SAVINGS ACCOUNT

HDFC Bank offers 11 types of savings accounts to serve the financial needs of students, entrepreneurs, salaried
employees, or senior citizens. From regular to premium savings account, one can manage the money efficiently. 

CURRENT ACCOUNT

HDFC Bank offers 18 types of current accounts to serve the needs of different businesses. Current accounts
largely deal with liquid deposits does not limit the number of transactions in a day and easily allows for the
withdrawal of funds.
Loan

HOME LOAN

HDFC Bank offers 3 types of home loans for its customers at attractive interest rates. Customers can opt for
automated repayment and the EMIs will be directly repaid from HDFC Bank Savings Account. 

PERSONAL LOAN

HDFC Bank offers a personal loan to its customers at attractive interest rates, low processing fees, & simplified
documentation. Customers can also avail pre-approved loan in 10 seconds and others can get a loan in 4 hours. 

LOAN AGAINST PROPERTY

HDFC Bank customers can pledge their property to meet the personal or business goals with 4 types of loan
against property. Customers can get up to 65% of one’s property’s value, attractive interest rates, and hassle-free
processing.

CAR LOAN

HDFC Bank helps to finance the dream of buying a new car for its customers with up to 100% funding.
Customers can opt for 3 types of car loans as per their requirement with 7 year loan tenure, quick disbursal, and
processing. 
EDUCATION LOAN

HDFC Bank offers 3 types of education loan to its customers studying across leading institutions in India &
overseas to fulfill their career goals & aspirations. Customers can also avail tax benefits u/s 80 (E) of Income
Tax Act, 1961. 

GOLD LOAN

HDFC Bank offers gold loan with a minimum loan amount of Rs. 25,000 to its customers at a flexible interest
rate, minimal documentation & secure storage. Customers can get the funds instantly & repay at their own
convenience. 

BUSINESS LOAN

HDFC Bank offers business loan to its customers of up to Rs. 50 lakh to fulfill their unique business. It comes
with easy documentation, attractive interest rates, overdraft facility, and flexible tenures. 
Investment

FIXED DEPOSIT

HDFC Bank offers fixed deposit schemes with high returns to its customers for investing money. It also
provides preferential interest rates (0.50% additional) to senior citizens. 

RECURRING DEPOSIT

HDFC Bank offers a recurring deposit with a minimum deposit as small as Rs. 1,000 or up to Rs. 14.99 per
month and with a minimum tenure of 6 months up to a maximum tenure of 10 years.
Cards

CREDIT CARD

HDFC Bank offers various types of credit cards to fulfill the needs of its customers. The card offers attractive
reward points, exclusive travel benefits, dining privileges, and many more. 

DEBIT CARD

HDFC Bank offers a wide range of debit cards to cater to the needs of its customers. The cards provide various
offers, discounts, and cashback on shopping, traveling, dining, etc. 
Banking

BALANCE ENQUIRY

HDFC Bank account holders can check their account balance via Netbanking, Mobile Banking, Missed Call,
SMS, Passbook, ATM & Customer Care Number. 

MINI STATEMENT

HDFC Bank customers can avail their mini statement using Net Banking, Phone Banking, SMS, Passbook,
ATM and also by contacting the 24X7 customer care number. 

NET BANKING

HDFC Bank customers can avail Net Banking using which they can check their account balance, book fixed &
recurring deposits, transfer funds, download bank statement up to 5 years, etc. 

CUSTOMER CARE
HDFC customers can contact the bank’s customer care executives via SMS, E-mails, 24×7 available customer
care number in case of any queries, account-related questions, feedback, etc.

AWARDS

National Rural Livelihood Mission (NRLM), Ministry of Rural Development, Govt of India Best Performing
Bank in SHG Linkage Euromoney Private Banking and Wealth Management Survey 2022 Ranks No. 1 in the
Mass/Super Affluent clients category (US$100K to US$5m) PWM Global Private Banking Awards 2021 Best
Private Bank in India FinanceAsia Country Awards for Achievement 2021 Best Bank in India Asiamoney Asia
Private Banking Awards 2021 Best for wealth transfer/succession planning in India 2021 CII Digital
Transformation Award 2021 ‘Most Innovative Best Practice’ for financial inclusion — HDFC Bank and
Government of India’s Common Service Centres (CSC) partnership Euromoney Awards for Excellence 2021
Best Bank in India Business Today India's Best Banks Best Large Bank ABF Corporate & Investment Banking
Awards 2021 Corporate & Investment Bank of the Year - India Asiamoney Asia's Outstanding Companies Poll
2021 Most Outstanding Company in India Business Today India’s Best Companies to work for Ranked Best
Company to work for in the BFSI sector Great Place To Work Institute Certified as a 'Great Place To Work' for
2021-22.