1.

INTRODUCTION

A bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital markets.
Due to their importance in the financial stability of a country, banks are regulated in
most countries. Most nations have institutionalized a system known as fractional reserve
banking under which banks hold liquid assets equal to only a portion of their current
liabilities. In addition to other regulations intended to ensure liquidity, banks are
generally subject to minimum capital requirements based on an international set of capital
standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the prosperous cities
of Renaissance Italy but in many ways was a continuation of ideas and concepts
of credit and lending that had their roots in the ancient world. In the history of banking, a
number of banking dynasties – notably, the Medicis, the Fuggers, the Welsers,
the Berenbergs and the Rothschilds – have played a central role over many centuries.
The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest
existing merch ant bankis Berenberg Bank.

Banking in India is mainly governed by the BANKING REGULATION ACT, 1949 and
the RESERVE BANK OF INDIA ACT, 1934. The RBI ant the Government of India
exercise control over banks from opening of bank to their winding up by virtue of the
powers conferred under these statues. The RBI is responsible for licensing of bank.
 2. OBJECTIVES OF STUDY

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

 The main objective of this study is to know the Customers perceptions about home loans
of HDFC(housing development finance corporation)LTD
 To know the awareness of customers about home loan products and services.
 To make comparative study of Disbursement of home loans by a few
 Commercial banks.
 To study the satisfaction level of customers about home loans.
 To study the problems faced by customers in obtaining the home loans.
 To learn about various aspect of hdfc home loan ltd.

PURPOSE OF THE STUDY

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

 To know the ideas of customers about home loan products and services.
 To study the satisfaction level of customers about home loans.
 To study the problems faced by customers in obtaining the home loans.
 To learn about various aspect of HDFC home loan ltd.

SCOPE OF STUDY

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

Research methodology is a way to systematically show the research problem. It may be

understood as a science of studying how research is done scientifically. It is necessary for the
researcher to know not only the research methods but also the methodology.

This Section includes the methodology which includes. The research design, objectives of study,
scope of study along with research methodology and limitations of study etc.

 To know the Customers perceptions about home loans of HDFC housing development
finance corporation LTD.
 To study the satisfaction level of customers about home loans.

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

 To make comparative study of disbursement of home loans by commercial banks, the study
shall be conducted in the manner enumerated below-

3.1- RESEARCH DESIGN:-

This project is based on exploratory study as well descriptive study. It was an exploratory
study when the customer satisfaction level was studied to suggest new methods to improve the
services of HDFC LTD in providing home loans and it was descriptive study when detailed study
was made for comparison of disbursement of home loans by commercial banks.
3.2 – SOURCES OF DATA :-

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

A - PRIMARY SOURCE:-

In survey approach we had selected a questionnaire method for taking a customer view because it
is feasible from the point of view of our subject & survey purpose. We conducted 200 sample of
survey in our project to judge the satisfaction level of customers which took home loans.

• Sample size;-

For the questionnaire I have taken the sample size of 200 customers of HDFC LTD.

B – SECONDARY SOURCE:-

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

3.3 DATA COLLECTION INSTRUMENT DEVELOPMENT :-

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

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

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

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

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

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

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

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

Thus above all were the limitations in this research study. The maximum efforts were made to
overcome these limitations in the study.
5. OVERVIEW OF STUDY

MORTGAGE LOAN

For the vast majority of people, it’s impossible to buy a home without a mortgage.

Getting hundreds of thousands of pounds together to put down as one lump sum is a
privilege reserved for very few.

As it stands, it’s as much as most homebuyers can do to scrape together a deposit. The
rest has to be borrowed from a bank or building society. Fortunately, there are hundreds
of lenders offering a whole range of different types of mortgages. Whether you are
buying your first home, remortgaging or moving up the property ladder, there should be a
home loan suitable for you.

Most mortgages are now only offered on a repayment basis which means you repay part
of the capital and the interest every month. At the end of the term, which is usually
between 25 and 30 years, your mortgage debt will have been totally repaid.

Some lenders allow you to take out an interest-only mortgage which means that your
monthly payments only cover the interest. You therefore need to have a plan in place so
that you can afford to repay the amount you initially borrowed in full, at the end of the
term.

Many major lenders have withdrawn from the interest-only market, while others have
tightened their criteria making them harder to get because of concerns that thousands of
people have interest-only mortgages with no means of repaying them.

Opting for interest-only might seem attractive because your monthly repayments will be
lower than with a repayment mortgage, but unless you have a solid plan to pay back the
capital it’s best to go for a repayment loan.
A mortgage loan, also referred to as simply a mortgage, is used either by purchasers
of real property to raise funds to buy real estate; or alternatively by existing property
owners to raise funds for any purpose, while putting a lien on the property being
mortgaged. The loan is "secured" on the borrower's property through a process known
as mortgage origination. This means that a legal mechanism is put in place which allows
the lender to take possession and sell the secured property ("foreclosure" or
"repossession") to pay off the loan in the event that the borrower defaults on the loan or
otherwise fails to abide by its terms. The word mortgage is derived from a "Law French"
term used by English lawyers in the middle Ages meaning "death pledge", and refers to
the pledge ending (dying) when either the obligation is fulfilled or the property is taken
through foreclosure. Mortgage can also be described as "a borrower giving consideration
in the form of collateral for a benefit (loan)."

Mortgage borrowers can be individuals mortgaging their home or they can be

businesses mortgaging commercial property (for example, their own business premises,
residential property let to tenants or an investment portfolio). The lender will typically be
a financial institution, such as a bank, credit union or building society, depending on the
country concerned, and the loan arrangements can be made either directly or indirectly
through intermediaries. Features of mortgage loans such as the size of the loan, maturity
of the loan, interest rate, method of paying off the loan, and other characteristics can vary
considerably. The lender's rights over the secured property take priority over the
borrower's other creditors which means that if the borrower
becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to
them from a sale of the secured property if the mortgage lender is repaid in full first

In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan.

Few individuals have enough savings or liquid funds to enable them to purchase property
outright. In countries where the demand for home ownership is highest, strong domestic
markets for mortgages have developed. A mortgage makes home ownership affordable
Buying a home is likely to be the biggest purchase you’ll ever make and a mortgage will
be your largest debt. Because you can spread the repayments on your home loan over so
 many years, the amount you’ll pay back every month is more manageable, and
affordable!

Traditionally, when people take out their first mortgage, they’ve tended to opt for
a 25 year term. However, there are no rules about this and as we are living longer
and the retirement age is going up, 30-year mortgages are becoming more
common. This can help bring your monthly payments down, but on the flip side
you’ll be saddled with the debt for longer.

Following job objective points will help to perform responsibilities of mortgage job.
These objectives demonstrate the career approach of the applicant.

 Looking for the challenging and responsible job position of a finance officer to
perform multiple responsibilities of mortgage department and other banking procedures.
 To achieve a job position that will permit me to make use of my strong executive
skills, educational background, and aptitude to effort well with client.
 Qualified Mortgage Loan Officer with 4 years experience in representing
mortgage organization as well as skills of loan application procedures.
 I look for to work in your reputed organization, and use my abilities for the
presentation of my responsibilities. My proficient and interpersonal skills would assist me
in making precious involvement to the development of your organization.
 Seeking for the job position as a mortgage loan officer to provide great customer
service and to attract new clients. Ability to maintain professional reputation by using
professional skills and educational qualification. Above points will help you to prepare
your own resume to get appropriate job opportunity in mortgage field.
 A. INTRODUCTION

The definition of a bank varies from country to country. See the relevant country pages
under for more information.

Under English common law, a banker is defined as a person who carries on the business
of banking by conducting current accounts for his customers, paying cheques drawn on
him/her and collecting cheques for his/her customers.

In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in
relation to negotiable instruments, including cheques, and this Act contains a statutory
definition of the term banker: banker includes a body of persons, whether incorporated or
not, who carry on the business of banking' (Section 2, Interpretation). Although this
definition seems circular, it is actually functional, because it ensures that the legal basis
for bank transactions such as cheques does not depend on how the bank is structured or
regulated.

The business of banking is in many English common law countries not defined by statute
but by common law, the definition above. In other English common law jurisdictions
there are statutory definitions of the business of banking or banking business. When
looking at these definitions it is important to keep in mind that they are defining the
business of banking for the purposes of the legislation, and not necessarily in general. In
particular, most of the definitions are from legislation that has the purpose of regulating
and supervising banks rather than regulating the actual business of banking. However, in
many cases the statutory definition closely mirrors the common law one. Examples of
statutory definitions:

 "banking business" means the business of receiving money on current or deposit

account, paying and collecting cheques drawn by or paid in by customers, the making
of advances to customers, and includes such other business as the Authority may
prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2,
Interpretation).

 "banking business" means the business of either or both of the following:

 1. receiving from the general public money on current, deposit, savings or other
similar account repayable on demand or within less than [3 months] ... or with a
period of call or notice of less than that period;

2. PAYING OR COLLECTING CHEQUES DRAWN BY OR PAID IN BY

CUSTOMERS.

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct
credit, direct debit and internet banking, the cheque has lost its primacy in most banking
systems as a payment instrument. This has led legal theorists to suggest that the cheque
based definition should be broadened to include financial institutions that conduct current
accounts for customers and enable customers to pay and be paid by third parties, even if
they do not pay and collect cheques.

Large Door To An Old Bank Vault.

Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers in the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer payments via other payment
methods such as Automated Clearing House (ACH), Wire transfers or telegraphic
transfer, EFTPOS, and automated teller machines (ATMs).

Banks borrow money by accepting funds deposited on current accounts, by

accepting term deposits, and by issuing debt securities such as banknotes and bonds.
Banks lend money by making advances to customers on current accounts, by
making installment loans, and by investing in marketable debt securities and other forms
of money lending.

Banks provide different payment services, and a bank account is considered

indispensable by most businesses and individuals. Non-banks that provide payment
services such as remittance companies are normally not considered as an adequate
substitute for a bank account.

Banks can create new money when they make a loan. New loans throughout the banking
system generate new deposits elsewhere in the system. The money supply is usually
increased by the act of lending, and reduced when loans are repaid faster than new ones
are generated. In the United Kingdom between 1997 and 2007, there was an increase in
the money supply, largely caused by much more bank lending, which served to push up
property prices and increase private debt. The amount of money in the economy as
measured by M4 in the UK went from £750 billion to £1700 billion between 1997 and
2007, much of the increase caused by bank lending. If all the banks increase their lending
together, then they can expect new deposits to return to them and the amount of money in
the economy will increase. Excessive or risky lending can cause borrowers to default, the
banks then become more cautious, so there is less lending and therefore less money so
that the economy can go from boom to bust as happened in the UK and many other
Western economies after 2007.

Range of activities

Activities undertaken by banks include personal banking, corporate banking, investment

banking, private banking, transaction banking, insurance, consumer finance, foreign
exchange trading, commodity trading, trading in equities, futures and options
trading and money market trading.

Channels
An American bank in Maryland.

Banks offer many different channels to access their banking and other services:

 Branch, in-person banking in a retail location

 Automated teller machine banking adjacent to or remote from the bank

 Bank by mail: Most banks accept cheque deposits via mail and use mail to
communicate to their customers

 Online banking over the Internet to perform multiple types of transactions

 Mobile banking is using one's mobile phone to conduct banking transactions

 Telephone banking allows customers to conduct transactions over the telephone

with an automated attendant, or when requested, with a telephone operator

 Video banking performs banking transactions or professional banking

consultations via a remote video and audio connection. Video banking can be
performed via purpose built banking transaction machines (similar to an Automated
teller machine) or via a video conference enabled bank branch clarification

 Relationship manager, mostly for private banking or business banking, who visits
customers at their homes or businesses

 Direct Selling Agent, who works for the bank based on a contract, whose main job
is to increase the customer base for the bank
MEANING

According to PROF. KINLEY, “A bank is an establishment which makes to individuals

such advances of money as may be required and safely made, and to which individuals,
entrust money when not required by them for use.”

According to PROF. HORACE WHITE, “A BANK IS A MANUFACTURE OF

CREDIT, AND A MACHINE FOR FACILITATING EXCHANGE.”

According to PROF. WALTER LEAF, “A BANK IS A PERSON OR CORPORATION

WHICH HOLDS ITSELF OUT TO RECEIVE FROM THE PUBLIC, DEPOSITS
PAYABLE ON DEMAND BY CHEQUE.”

The BANKING COMPANIES ACT 1949 of INDIA defines Bank as, “A BANK IS A
FINANCIAL INSTITUTION WHICH ACCEPTS MONEY FROM THE PUBLIC FOR
THE OF LENDING OR INVESTMENT REPAYABLE ON DEMAND OR
OTHERWISE WITHDRAWABLE BY CHEQUES, DRAFTS OR ORDERS OR
OTHERWISE.”

The definition of banks varies from country to country.

 B.. HISTORY

You may think mortgages have been around for hundreds of years -- after all, how could
anyone ever afford to pay for a house outright? It was only in the 1930s, however, that
mortgages actually got their start. It may surprise you to learn that banks didn't forge
ahead with this new idea; insurance companies did. These daring insurance companies
did this not in the interest of making money through fees and interest charges, but in the
hopes of gaining ownership of properties if borrowers failed to keep up with the
payments.

It wasn't until 1934 that modern mortgages came into being. The Federal Housing
Administration (FHA) played a critical role. In order to help pull the country out of the
Great Depression, the FHA initiated a new type of mortgage aimed at the folks who
couldn't get mortgages under the existing programs. At that time, only four in 10
households owned homes. Mortgage loan terms were limited to 50 percent of the
property's market value, and the repayment schedule was spread over three to five years
and ended with a balloon payment. An 80 percent loan at that time meant your down
payment was 80 percent -- not the amount you financed! With loan terms like that, it's no
wonder that most Americans were renters

FHA started a program that lowered the down payment requirements. They set up
programs that offered 80 percent loan-to-value (LTV), 90 percent LTV, and higher. This
forced commercial banks and lenders to do the same, creating many more opportunities
for average Americans to own homes.

The FHA also started the trend of qualifying people for loans based on their actual ability
to pay back the loan, rather than the traditional way of simply "knowing someone." The
FHA lengthened the loan terms. Rather than the traditional five- to seven-year loans, the
FHA offered 15-year loans and eventually stretched that out to the 30-year loans we have
today.

Another area that the FHA got involved in was the quality of home construction. Rather
than simply financing any home, the FHA set quality standards that homes had to meet in
order to qualify for the loan. That was a smart move; they wouldn't want the loan
outlasting the building! This started another trend that commercial lenders eventually
followed.

Before FHA, traditional mortgages were interest-only payments that ended with a balloon
payment that amounted to the entire principal of the loan. That was one reason why
foreclosures were so common. FHA established the amortization of loans, which meant
that people got to pay an incremental amount of the loan's principal amount with each
interest payment, reducing the loan gradually over the loan term until it was completely
paid off.

On the next page, we'll break down the components of the modern monthly loan payment
and explain the important concept of amortization.

It’s worth going for the shortest term you can afford – not only will you be
mortgage-free sooner but you’ll also save yourself thousands of pounds in
interest. And don’t forget, when you remortgage and switch to a new product, you
shouldn’t opt for another 25 or 30 year term.
C. FEATURES AND BENEFITS

 Mortgage loan in India is a secured type of loan.

 This loan comes in longer tenure with smaller EMI options.

 Banks and NBFCs often offer customized loan as per the needs of
the borrower.

 As it’s the secure loan, it offers lower interest rate compared to

unsecured loan as the property is being kept as mortgage.

 If by any chance the borrower fails to pay off the mortgage loan, the
lender has the right to repossess the mortgaged property.

 After the repayment of the loan, the borrower becomes the sole
owner of the mortgaged property.

 With a mortgage loan, anyone can afford to buy a house.

 Mortgage loan is given for residential as well as commercial

properties.

 The borrower can pay off the mortgage loan by EMI i.e. Equated
Monthly Installment.

 The mortgage loan is easily available as it’s offered by various

banks and NBFCs.
  One can get a mortgage loan anywhere in India.

 Banks and NBFCs have a very specific documentation list and

eligibility criteria to approve and process mortgage loan.

 Banks and NBFCs offer fixed as well as floating interest rate for
mortgage loans.

 One can avail larger amounts of loan via mortgage loan.

 The funds a borrower gets from the mortgage loan can be used for
personal as well as business needs.

 Self employed as well as salaried employees also get mortgage

loan.

 Mortgage loans are good to build a strong credit score.

BENEFITS

BUYING CAPACITY:
The cost of property has increased like anything in the last couple of years. With lesser
hike in people’s salaries, it is impossible to think of buying land or house. That is where
mortgage comes to help. A mortgage loan definitely helps increase the buying capacity of
people

COST EFFECTIVE:
The mortgage loan is granted with your property as security. So, the lender need not
worry about the loan not being repaid. If anything goes wrong, the lender still has a
valuable property to rely upon. It can be sold to cover the debts. Due to this option, the
interest rate on mortgage loans is lower.

EASY TO REPAY:
When you take a loan, you do not have to repay the amount in one go. It can be paid as
monthly installments. For example, you can avail loan over a 25 year term which means
that you have 25 years to repay the loan as installments. So, one installment is not as big
an amount when compared to your salary which makes repayment easy.

BETTER CREDIT SCORE:

A good credit score is guaranteed in the credit report if the current status of the mortgage
loan is good. That means if you have correctly paid the installments, it helps you get
other loans with lower interest rates.

TAX BENEFITS:
Availing mortgage loans qualify a person for income tax benefits. They reduce the
amount of tax to be paid to the government. The money you pay as interest may be
excluded from the tax. This is the reason why people take a second loan for a new
property or a house when the first one is paid off.
 D. FUNCTIONS OF MORTGAGE

1. A mortgage can be affected only on immovable property, the immovable property

includes land, benefits that arise out of things attached to the earth like trees,
buildings, and machinery. But a machine which is not permanently fixed to the earth
and is shiftable from one place to another is not considered to be immovable
property.

2. A mortgage is the transfer of an interest in the specific immovable property and

differs from sale wherein the ownership of the property is transferred. Transfer of an
interest in the property means that the owner transfers some of the rights of
ownership to the mortgagee and retains the remaining rights with himself. For
example, a mortgagor retains the right to redeem the property mortgaged.

3. The object of transfer of an interest in the property must be to secure a loan or

performance of a contract which results in monetary obligation. Transfer of property
for purposes other than the above will not amount to the mortgage. For example, a
property transferred to liquidate prior debt will not constitute a mortgage.

4. The property to be mortgaged must be a specific one, i.e., it can be identified by

its size, location, boundaries etc.

5. The actual possession of the mortgaged property need not always be transferred to
the mortgagee.

6. The interest in the mortgaged property is re-conveyed to the mortgage on

repayment of the loan with interest due on.

7. In case the mortgager fails to repay the loan, the mortgagee gets the right to
recover the debt out of the sale proceeds of the mortgaged property.
E. ADVANTAGES AND DISADVANTAGE OF A
MORTGAGE

A mortgage makes home ownership affordable:

Buying a home is likely to be the biggest purchase you’ll ever make and a mortgage will
be your largest debt. Because you can spread the repayments on your home loan over so
many years, the amount you’ll pay back every month is more manageable, and
affordable!

Traditionally, when people take out their first mortgage, they’ve tended to opt for a 25
year term. However, there are no rules about this and as we are living longer and the
retirement age is going up, 30-year mortgages are becoming more common. This can help
bring your monthly payments down, but on the flip side you’ll be saddled with the debt
for longer.

It’s worth going for the shortest term you can afford – not only will you be mortgage-free
sooner but you’ll also save yourself thousands of pounds in interest. And don’t forget,
when you remortgage and switch to a new product, you shouldn’t opt for another 25 or
30 year term.

For example, say you take a five-year fixed rate deal as your first mortgage and borrow
the money over a 25-year term. When you come to remortgage five-years later, you
should aim to take that mortgage out over 20 years.

A mortgage is a cost-effective way of borrowing:

Interest rates on mortgages tend to be lower than any other form of borrowing because
the loan is secured against your property. This means the bank or building society has the
security that if it all goes wrong and you can’t repay it there is still something valuable –
your property – to sell to pay back some, if not all, of the mortgage.

Interest rates on mortgages are constantly changing – over the years they’ve been higher
than 15% and lower than 2%. Fixed rate and tracker mortgages tend to be the most
popular, but there are also discount and offset mortgages, plus products aimed at first
time buyers and landlords. Our guide on different types of mortgages explains these in
more depth.

There are a number of government schemes available to help people buy their first home
such as Help to Buy, Funding for Lending and NewBuy. Some shared-ownership
schemes where you only buy part of the property and rent on the proportion you don’t
own yet are run by the local council or housing trusts.

Disadvantages of a mortgage

You’ll pay back A LOT MORE than you originally borrowed:

The most obvious disadvantage is that you are carrying an enormous debt over a long
time. The other major drawback is that since the mortgage is secured on your property,
you have to be able to keep up with your mortgage repayments or you could lose your
home.
During the credit crunch, lenders worked hard at keeping even those struggling with the
mortgage in their home. But if homeowners really can’t make the repayments, their
home will be repossessed. The bank or building society will then sell it to recover their
money.

Although the monthly amount you’re paying may seem reasonable, the total amount you
pay back over the years is huge. For example, someone who borrowed £160,000 over a
25-year term would repay £280,600 in total once interest is added on! (This assumes the
rate of interest averages 5% over the term.)
Watch out for fees:

It’s not only the cost of interest that mounts up when you have a mortgage. Fees can also
be hefty. There will be set up costs each time you take out a new mortgage and these vary
significantly but some are as high as £2,000. You’ll also incur conveyancing costs
(conveyancing is the legal work required when you take out a mortgage); and there are
penalty fees to watch out for if you need to get out of your mortgage deal early.
7. TYPES OF MORTGAGES -

1. Simple Mortgage
2. Mortgage by Conditional Sale
3. Usufructuary Mortgage
4. English Mortgage
5. Mortgage by deposit of title of deeds
6. Anomalous mortgage

1. Simple Mortgage -
In a Simple mortgage, the possession of the mortgaged property is not transferred from
mortgagor to the mortgagee.

If the mortgagor fails to repay the loan, the mortgagee has the right to sell the property
and recover the loan from the sale amount.

2. Mortgage by Conditional Sale -

Under such Mortgage, the mortgagor apparently sells the property to the mortgagee on
certain conditions -

1.On failure to repay the mortgage money before a certain date the sale shall become
absolute,or
2.On condition that on such repayment of mortgage money the sale shall become
invalid,or
3.On condition that on such repayment the mortgagee shall retransfer the property.

In such case, the mortgagee is a "mortgagee by conditional sale".

3. Usufructuary Mortgage -
In a usufructuary Mortgage, the possession of the mortgaged property is transferred to the
mortgagee. The mortgagee receives the income from the property (rent, profit, interest,
etc) until the repayment of the loan. The title deeds remain with the owner.

4. English Mortgage -

In an English Mortgage -
1.The mortgagor binds himself to repay the borrowed money on a certain date.
2.The mortgagor transfers the property absolutely to the mortgagee.
3.But such transfer is subject to the condition that the mortgagee will retransfer the
property on repayment before the agreed date.

5. Mortgage by deposit of title of deeds -

In such mortgage, the mortgagor delivers the title document of the property to the
mortgagee with an intention to create a security thereon. Such mortgage is valid in towns
of Kolkatta, Mumbai and any other town as the State Government may notify by
publication in Official Gazatte

6. Anomalous mortgage -
Anomalous mortgage is a combination of different types of mortgages.

There are many types of mortgages used worldwide, but several factors broadly define
the characteristics of the mortgage. All of these may be subject to local regulation and
legal requirements.

 Interest: Interest may be fixed for the life of the loan or variable, and change at
certain pre-defined periods; the interest rate can also, of course, be higher or lower.

 Term: Mortgage loans generally have a maximum term, that is, the number of
years after which an amortizing loan will be repaid. Some mortgage loans may have
no amortization, or require full repayment of any remaining balance at a certain date,
or even negative amortization.
 Payment amount and frequency: The amount paid per period and the frequency of
payments; in some cases, the amount paid per period may change or the borrower
may have the option to increase or decrease the amount paid.

 Prepayment: Some types of mortgages may limit or restrict prepayment of all or a

portion of the loan, or require payment of a penalty to the lender for prepayment.

The two basic types of amortized loans are the fixed rate mortgage (FRM)
and adjustable-rate mortgage (ARM) (also known as a floating rate or variable rate
mortgage). In some countries, such as the United States, fixed rate mortgages are the
norm, but floating rate mortgages are relatively common. Combinations of fixed and
floating rate mortgages are also common, whereby a mortgage loan will have a fixed rate
for some period, for example the first five years, and vary after the end of that period.

 In a fixed rate mortgage, the interest rate, remains fixed for the life (or term) of
the loan. In case of an annuity repayment scheme, the periodic payment remains the
same amount throughout the loan. In case of linear payback, the periodic payment
will gradually decrease.

 In an adjustable rate mortgage, the interest rate is generally fixed for a period of
time, after which it will periodically (for example, annually or monthly) adjust up or
down to some market index. Adjustable rates transfer part of the interest rate risk
from the lender to the borrower, and thus are widely used where fixed rate funding is
difficult to obtain or prohibitively expensive. Since the risk is transferred to the
borrower, the initial interest rate may be, for example, 0.5% to 2% lower than the
average 30-year fixed rate; the size of the price differential will be related to debt
market conditions, including the yield curve.

The charge to the borrower depends upon the credit risk in addition to the interest rate
risk. The mortgage origination and underwriting process involves checking credit scores,
debt-to-income, down payments, and assets. Jumbo mortgages and subprime lending are
not supported by government guarantees and face higher interest rates. Other innovations
described below can affect the rates as well.
Loan to value and down payments
Upon making a mortgage loan for the purchase of a property, lenders usually require that
the borrower make a down payment; that is, contribute a portion of the cost of the
property. This down payment may be expressed as a portion of the value of the property
(see below for a definition of this term). The loan to value ratio (or LTV) is the size of the
loan against the value of the property. Therefore, a mortgage loan in which the purchaser
has made a down payment of 20% has a loan to value ratio of 80%. For loans made
against properties that the borrower already owns, the loan to value ratio will be imputed
against the estimated value of the property.

The loan to value ratio is considered an important indicator of the riskiness of a mortgage
loan: the higher the LTV, the higher the risk that the value of the property (in case of
foreclosure) will be insufficient to cover the remaining principal of the loan.

Value: appraised, estimated, and actual

Since the value of the property is an important factor in understanding the risk of the
loan, determining the value is a key factor in mortgage lending. The value may be
determined in various ways, but the most common are:

1. Actual or transaction value: this is usually taken to be the purchase price of the
property. If the property is not being purchased at the time of borrowing, this
information may not be available.

2. Appraised or surveyed value: in most jurisdictions, some form of appraisal of the

value by a licensed professional is common. There is often a requirement for the
lender to obtain an official appraisal.

3. Estimated value: lenders or other parties may use their own internal estimates,
particularly in jurisdictions where no official appraisal procedure exists, but also
in some other circumstances.
Payment and debt ratios

In most countries, a number of more or less standard measures of creditworthiness may

be used. Common measures include payment to income (mortgage payments as a
percentage of gross or net income); debt to income (all debt payments, including
mortgage payments, as a percentage of income); and various net worth measures. In
many countries, credit scores are used in lieu of or to supplement these measures. There
will also be requirements for documentation of the creditworthiness, such as income tax
returns, pay stubs, etc. the specifics will vary from location to location.

Some lenders may also require a potential borrower have one or more months of "reserve
assets" available. In other words, the borrower may be required to show the availability
of enough assets to pay for the housing costs (including mortgage, taxes, etc.) for a period
of time in the event of the job loss or other loss of income.

Many countries have lower requirements for certain borrowers, or "no-doc" / "low-doc"
lending standards that may be acceptable under certain circumstances.

Standard or conforming mortgages

Many countries have a notion of standard or conforming mortgages that define a

perceived acceptable level of risk, which may be formal or informal, and may be
reinforced by laws, government intervention, or market practice. For example, a standard
mortgage may be considered to be one with no more than 70–80% LTV and no more than
one-third of gross income going to mortgage debt.

A standard or conforming mortgage is a key concept as it often defines whether or not the
mortgage can be easily sold or securitized, or, if non-standard, may affect the price at
which it may be sold. In the United States, a conforming mortgage is one which meets the
established rules and procedures of the two major government-sponsored entities in the
housing finance market (including some legal requirements). In contrast, lenders who
decide to make nonconforming loans are exercising a higher risk tolerance and do so
knowing that they face more challenge in reselling the loan. Many countries have similar
concepts or agencies that define what are "standard" mortgages. Regulated lenders (such
as banks) may be subject to limits or higher risk weightings for non-standard mortgages.
For example, banks and mortgage brokerages in Canada face restrictions on lending more
than 80% of the property value; beyond this level, mortgage insurance is generally
required.

Foreign currency mortgage

In some countries with currencies that tend to depreciate, foreign currency mortgages are
common, enabling lenders to lend in a stable foreign currency, whilst the borrower takes
on the currency risk that the currency will depreciate and they will therefore need to
convert higher amounts of the domestic currency to repay the loan.
 8.REGULATORY FRAMEWORK

Basic concepts and legal regulation

According to Anglo-American property law, a mortgage occurs when an owner (usually

of a fee simple interest in realty) pledges his or her interest (right to the property)
as security or collateral for a loan. Therefore, a mortgage is an encumbrance (limitation)
on the right to the property just as an easement would be, but because most mortgages
occur as a condition for new loan money, the word mortgage has become the generic term
for a loan secured by such real property. As with other types of loans, mortgages have
an interest rate and are scheduled to amortize over a set period of time, typically 30 years.
All types of real property can be, and usually are, secured with a mortgage and bear an
interest rate that is supposed to reflect the lender's risk.

Mortgage lending is the primary mechanism used in many countries to finance private
ownership of residential and commercial property (see commercial mortgages). Although
the terminology and precise forms will differ from country to country, the basic
components tend to be similar:

 Property: the physical residence being financed. The exact form of ownership will
vary from country to country, and may restrict the types of lending that are possible.

 Mortgage: the security interest of the lender in the property, which may entail
restrictions on the use or disposal of the property. Restrictions may include
requirements to purchase home insurance and mortgage insurance, or pay off
outstanding debt before selling the property.

 Borrower: the person borrowing who either has or is creating an ownership

interest in the property.
 Lender: any lender, but usually a bank or other financial institution. (In some
countries, particularly the United States, Lenders may also be investors who own an
interest in the mortgage through a mortgage-backed security. In such a situation, the
initial lender is known as the mortgage originator, which then packages and sells the
loan to investors. The payments from the borrower are thereafter collected by a loan
servicer.

 Principal: the original size of the loan, which may or may not include certain
other costs; as any principal is repaid, the principal will go down in size.

 Interest: a financial charge for use of the lender's money.

 Foreclosure or repossession: the possibility that the lender has to foreclose,

repossess or seize the property under certain circumstances is essential to a mortgage
loan; without this aspect, the loan is arguably no different from any other type of
loan.

 Completion: legal completion of the mortgage deed, and hence the start of the
mortgage.

 Redemption: final repayment of the amount outstanding, which may be a "natural

redemption" at the end of the scheduled term or a lump sum redemption, typically
when the borrower decides to sell the property. A closed mortgage account is said to
be "redeemed".

Many other specific characteristics are common to many markets, but the above are the
essential features. Governments usually regulate many aspects of mortgage lending,
either directly (through legal requirements, for example) or indirectly (through regulation
of the participants or the financial markets, such as the banking industry), and often
through state intervention (direct lending by the government, direct lending by state-
owned banks, or sponsorship of various entities). Other aspects that define a specific
mortgage market may be regional, historical, or driven by specific characteristics of the
legal or financial system.

Mortgage loans are generally structured as long-term loans, the periodic payments for
which are similar to an annuity and calculated according to the time value of
moneyformulae. The most basic arrangement would require a fixed monthly payment
over a period of ten to thirty years, depending on local conditions. Over this period the
principal component of the loan (the original loan) would be slowly paid down
through amortization. In practice, many variants are possible and common worldwide and
within each country.

Lenders provide funds against property to earn interest income, and generally borrow
these funds themselves (for example, by taking deposits or issuing bonds). The price at
which the lenders borrow money therefore affects the cost of borrowing. Lenders may
also, in many countries, sell the mortgage loan to other parties who are interested in
receiving the stream of cash payments from the borrower, often in the form of a security
(by means of a securitization).

Mortgage lending will also take into account the (perceived) riskiness of the mortgage
loan, that is, the likelihood that the funds will be repaid (usually considered a function of
the creditworthiness of the borrower); that if they are not repaid, the lender will be able to
foreclose on the real estate assets; and the financial, interest rate risk and time delays that
may be involved in certain circumstances.

ELIGIBILITY

FACTORS

The general factors taken into account while determining the eligibility of loan against
property are listed below:
1. Income.
2. Age (Min. 21 Years).
3. Property Valuation.
4. Existing Liabilities (if any).
5. Current Work Experience.
6. Financial Documents.
7. Number of Dependants.
 DOCUMENTS

As personal loans are unsecured, interest rates are comparatively higher and competitive
than the other forms of loan. Though personal loan is a quick way to access extra cash,
one will face non-payment penalty if not repaid on time. It’s a bad option to go consider
personal loan for investments as this could backfire.

Though personal loans are the easiest way to obtain cash for any personal emergency,
there are few eligibility criteria’s one should suffice to obtain the loan.

 Applicant’s age should be between 23 – 58 years

 Applicant should be a salaried individual, salaried professional or self-employed

with min turnover of 40 lacs

 Minimum monthly salary should be Rs. 20,000

 Applicant should have 2 years experience in current occupation

 And 1 year residing in current home address

Some of the banks approve personal loans with in 24hrs to 1 week. For the quick
approval process, its very important to have the below documents ready without which
the loan will be rejected.

Salaried Applicants:

 Application form and your latest photograph (2)

 Proof of identity: Copy of passport/voter ID card/driving license/PAN cards

 Proof of address: Leave and License Agreement / Utility Bill (not more than 3
months old) / Passport

 House ownership Proof: Property Documents/Maintenance Bill/Electricity Bill

 Bank statement - Last 6 months bank statement

 Income proof: Salary slip for last 3 months/ current dated salary certificate with
the latest Form 16

 Investment Proof (if any): Please submit if any investment likes, Fixed Deposit,
Shares, Fixed Assets, etc.

 Existing EMI: If any existing loan, please submit sanction letter, Payment Track
Record.

Self-Employed Applicants:

 Application form and your latest photograph (2)

 Proof of identity for Residence: Copy of passport/voter ID card/driving

license/PAN card

 Proof of address: Leave and License Agreement / Utility Bill (not more than 3
months old) / Passport

 House ownership Proof: Property Documents/Maintenance Bill/Electricity Bill

 Office Address Proof: Maintenance Bill, Utility Bill

 Office Ownership Proof: Property Documents, Maintenance Bill, Electricity Bill

 Business Existence Proof: Saral Copy for 3 yrs, Shop Establishment Act, Any Tax
Registration Copy, Company Registration license

 Income Proof: Latest 2 years Income Tax Returns including Computation of

Income, Profit and Loss Account, Balance Sheet, Audit Report, etc.,

 Bank Statement: Latest 1 year bank statement both current and savings.
 Investment Proof (if any): please submit if any investments like, Fixed Deposit,
Shares, Fixed Assets, etc.

 Existing EMI: If any existing loan, please submit sanction letter, Payment Track
Record.
 PROCEDURE OF MORTGAGE

Part 1:-Opening the file:

1) Contact the loan officer. The loan officer acts as the intermediary between you and the
borrower, and they can answer any questions you have about the loan. If you have any
questions about the information, the loan officer can answer them.
 Read through the application and other documents received first to make sure you
understand everything about the loan before you get started with the processing. If you
have any questions, it's better to ask them as soon as possible.

2) Enter loan information into the computer system. The bank or lending company where
you work will have its own system for entering information about each loan you process.
Enter the information you've received accurately and completely.
 If the computer system prompts you for information you don't have in the loan
file you received, contact the loan officer as soon as possible so you can get this
information filled in.
 The computer system will generate deadlines for various processing steps to be
completed, and may send you reminders when a deadline is approaching.

3) Order the borrower's credit report. If the borrower was pre-approved, the loan officer
may already have pulled the borrower's credit report and included it in the information
sent to you. If not, you'll have to order one.
 You may need a credit report from each of the three major credit reporting
bureaus. If the loan officer only checked one, you may still need to order the other two.

4) Order an inspection or appraisal. The mortgage company may require an inspection or

appraisal of the property being purchased before the loan can be approved. Depending on
your employer's rules, it may be your responsibility as a loan processor to order these.
 Since inspections and appraisals can take time, if you know you need to order
them, do so as soon as possible during processing.
 The underwriter will review the inspection and appraisal to determine the value of
the collateral for the loan. Some states may have additional requirements, such as
certification that there are no termites on the property.

5) Start a title search. The title search for the property will reveal whether there are any
outstanding liens or other claims against the title, which could affect the value of the
property.
 It's possible that the loan officer has already set the wheels in motion for the title
search, or you may be responsible for handling this on your own.

Part 2:-Verifying applicants information:

1) Check the borrower's income sources. The borrower's income is perhaps the most
important part of their loan package, because it determines their ability to pay back the
loan. Typically you'll be looking at the borrower's tax returns or pay stubs going back a
couple of years.
 The borrower's education and employment history can be just as important as the
amount of their income.
 For example, if you have a borrower in their mid-20s who just graduated with a
professional degree and has started working full-time in that field, their income probably
will increase as they gain experience in their field.
 You may need additional information to verify the borrower's income if they are
self-employed. Request this information as soon as possible to avoid any unnecessary
delays.

2) Evaluate the borrower's assets. The borrower may have other property that either could
generate income on its own or could be liquidated to pay debts if necessary. The value of
these assets will affect the amount of the loan that gets approved.
 Assets are particularly important if the borrower has limited or fixed income,
perhaps because they're retired.
 When assessing value here, take into account whether the borrower has used that
property as collateral on another loan.

3) Analyze the borrower's outstanding debts and credit history. The borrower's credit
report provides a snapshot of how that borrower handles credit. Compare their
outstanding debt to their income, and check for missed payments.
 Your employer will have basic standards that must be met. If the borrower doesn't
meet these standards, they may need to provide additional information. For example, if a
borrower has an unacceptable number of late payments on their report, the lender may
require an explanation.
4) Get proof of insurance. All lenders require borrowers to prove that they have
homeowner's insurance, or can get homeowner's insurance for the property. Your
employer will have set coverage standards that must be met.
 Homeowner's insurance protects the property, which is being used as collateral for
the loan. While the homeowner is still paying their mortgage, the insurance protects the
lender as well as the homeowner from loss.
 If proof of insurance wasn't submitted with the original loan application, work
with the loan officer to get documentation from the borrower.

Part 3:- Submitting the file to Underwriter

1) Review the file. Before you send the file off to the underwriter, take a moment to look
through all the information and documents in the file and make sure everything is
complete and accurate. Check for errors and contact the loan officer if you need
clarification on anything.
 As you review the file, note any possible red flags or other cause for concern. This
saves the underwriter some time as they go through the file.
 Make sure the file follows the underwriter's formatting and organization
guidelines. If documents or information are presented in the wrong order, it could impact
the loan's approval.

2) Request any additional reports of documents. The underwriter requires specific

documents and information in each loan file. If you found missing documents in your
review, contact the loan officer as soon as possible.
 If you've found any red flags, you also might want to get the borrower to explain
them. For example, suppose the borrower missed three payments on a car and had it
repossessed. The borrower may be able to provide information that would help excuse
them for that fault.

3) Forward the loan package to the underwriter. Once you're satisfied that everything in
the loan package is complete and in an acceptable form, it's ready to move on to the
underwriting process.
 You may be required to send the package through a supervisor first, who will review
your work and point out any changes that should be made. This is especially likely if
you're just starting out as a loan processor.

4 ) Work with the underwriter to resolve any problems.

The underwriter may issue”suspense" on the loan if they require more information for
processing. They may go directly to the loan officer for this information, but frequently
as a loan processor you will act as an intermediary between the underwriter and the loan
officer.
 In some cases, such as if the issue is related to a note or comment you made on
the file, the underwriter may go to you directly for an explanation.
 RATE OF INTERESTS

One topic that inevitably arises very early in a borrower’s conversations with a MLO is
the interest rate that may be available. The interest rate is the amount charged by a lender
to a borrower for the use of assets, expressed as a percentage of the loan amount (the
principal). When considering interest rates, you may hear the term basis point, which is
1/100th of a percentage point. For example, 325 basis points equal 3.25% or 3 1/4%.
A couple of other terms to keep in mind when discussing interest with borrowers:

• Par rate is a term that describes the rate without discounts or points that lenders offer
only to mortgage brokers, also known as the “wholesale” rate, that does not create an
additional charge or provide for a credit for the borrower.

• Rate Lock. This is a commitment guaranteed by a lender that an interest rate will not
change on a specific loan for a specific period of time. Since a lock-in agreement
generally requires that the loan close by a specific date, the anticipated close date should
be carefully considered. If a loan closes after the rate lock expires, the lender may choose
to offer the market rate current at that time or the original lock-in rate.

• Float. Between the time of application and closing, a borrower may choose to bet on
interest rates decreasing by electing to float. Floating is essentially choosing not to lock
the interest rate. Since it is the borrower’s responsibility to lock his or her rate before
closing, choosing to float is considered risky and may result in a higher interest rate.
 10. MORTGAGE BROKERS

A competent mortgage broker provides a broader range of choice and product for
residential real estate loans than any single lender is willing to provide. As you have just
seen from the above tables and mortgage variables, you need somebody to find the way
through the maze of options features. A Accredited Mortgage Professional can help you
find the perfect mortgage that provides the flexibility and security your family needs.

When you reach the point where you are ready to apply for your mortgage, consider
using an independent mortgage broker or If you are the type of person that knows exactly
what you need, then all you need to do is to...

Mortgage brokers may be able to find you the loan of your dreams, but you should weigh
the potential downsides before hiring one.

Mortgage Brokers: An Overview

When shopping for a mortgage, many home buyers enlist the services of a mortgage
broker to find them the best terms and rates. In the wake of the real estate market crash in
2008, however, the business practices of brokers came under scrutiny, and the question of
whether they act in customers' best interests was raised.

Working with an experienced, competent mortgage broker can help you find the right
mortgage. All the same, there are both advantages and disadvantages to consider before
committing to one.

Advantages of Mortgage Brokers

These are some of the advantages of working with a mortgage broker:

Saves You Legwork

Mortgage brokers have regular contact with a wide variety of lenders, some of whom you
may not even know about. A broker also can steer you away from certain lenders
with onerous payment terms buried in their mortgage contracts. That said, it is beneficial
to do some research of your own before meeting with a broker. An easy way to quickly
get a sense of the average rates available for the type of mortgage you're applying for is
to search rates online, then use a mortgage calculator. Tools like this will let you compare
rates easily and provide you with extra knowledge when assessing a mortgage broker's
credibility.

Brokers May Have More Access

Some lenders work exclusively with mortgage brokers and rely on them to be the
gatekeepers to bring them suitable clients. You may not be able to call some lenders up
directly to get a retail mortgage. Brokers may also be able to get special rates from
lenders due to the volume of business generated that might be lower than you can get on
your own.

Key Takeaways:

 Working with a mortgage broker can save you time and fees.

 Cons to consider include that a broker's interests may not be aligned with your
own, you may not get the best deal, and they may not guarantee estimates.

 Take the time to contact lenders directly to find out first hand what mortgages
may be available to you.

You May Save Some Fees

Several different types of fees can be involved in taking on a new mortgage or working
with a new lender, including origination fees, application fees, and appraisal fees. In
some cases, mortgage brokers may be able to get lenders to waive some or all of these
fees, which can save you hundreds to thousands of dollars.

Disadvantages of Mortgage Brokers

There are also disadvantages that need to be considered, including:
The Broker's Interests May Not Align With Your Own

Your ultimate goal in shopping for a mortgage is to find one with an affordable interest
rate and low fees. You are in it for the long haul. A mortgage broker, on the other hand,
often gets a fee from the lender for bringing in the business. This fee can be based on the
amount of the mortgage and will vary among lenders. A broker's goal, therefore, is to get
you into a mortgage that maximizes their compensation. The 2008 market crash revealed
that many brokers were getting their clients into mortgages that they could not afford
over time.

You May Not Be Getting the Best Deal

Many home buyers simply assume that a broker can deliver a better deal than they could
get on their own, but this is not always the case. Some lenders may offer home buyers the
very same terms and rates that they offer mortgage brokers (sometimes, even better). It
never hurts to shop around on your own to see if your broker is really offering you a great
deal. As mentioned earlier, using a mortgage calculator is an easy way to fact check if
your broker is offering you a good deal.

You May Owe a Broker Fee

Mortgage brokers are paid either by the lender or by you. If the fee is covered by the
lender, you need to be concerned whether you might be steered to a more expensive loan
because the commission to the broker is more lucrative. If you pay the fee, figure it into
the mortgage costs before deciding how good a deal you are getting. And be sure to settle
all fee issues up front before you sign anything or start working with a broker.

[Important: Spend some time contacting lenders directly to obtain an understanding of

which mortgages may be available to you.]

Brokers Often Do Not Guarantee Estimates

When a mortgage broker first presents you with offers from lenders, they often use the
term "good faith estimate." This means that the broker believes that the offer will embody
the final terms of the deal, but this is not always the case. In some cases, the lender may
change the terms based on your actual application, and you may end up paying a higher
rate or additional fees.

Some Lenders Do Not Work With Mortgage Brokers

This is an increasing trend since 2008, as some lenders are finding that broker-originated
mortgages were more likely to go into default than those sourced through direct lending.
By working through a broker, you may not have access to these lenders, some of
whom may be able to offer you better mortgage terms than you can get through the
broker.
 11. REPAYMENT METHOD

 This is the most popular and most widely available mortgage repayment option.

 With a repayment mortgage you’ll make monthly repayments for an agreed period
of time (known as the term) until you’ve paid back both the capital and the
interest.

 This means that your mortgage balance will get smaller every month and, as long
as you keep up the repayments, your mortgage will be repaid at the end of the
term (usually 25 years).

 Be aware that when you start your mortgage, the repayments will mainly be
interest, so if you want to repay the mortgage or move house in the early years,
you’ll find that the amount you owe won’t have gone down by much.

 You must also then decide the type of repayment mortgage you want, whether it’s
to have the interest rate fixed over time, or variable, which means the interest rate
can go up or down.

Principal and interest

The most common way to repay a secured mortgage loan is to make regular payments
toward the principal and interest over a set term. This is commonly referred to as
(self) amortization in the U.S. and as a repayment mortgage in the UK. A mortgage is a
form of annuity (from the perspective of the lender), and the calculation of the periodic
payments is based on the time value of money formulas. Certain details may be specific
to different locations: interest may be calculated on the basis of a 360-day year, for
example; interest may be compounded daily, yearly, or semi-annually; prepayment
penalties may apply; and other factors. There may be legal restrictions on certain matters,
and consumer protection laws may specify or prohibit certain practices.
Depending on the size of the loan and the prevailing practice in the country the term may
be short (10 years) or long (50 years plus). In the UK and U.S., 25 to 30 years is the usual
maximum term (although shorter periods, such as 15-year mortgage loans, are common).
Mortgage payments, which are typically made monthly, contain a repayment of the
principal and an interest element. The amount going toward the principal in each payment
varies throughout the term of the mortgage. In the early years the repayments are mostly
interest. Towards the end of the mortgage, payments are mostly for principal. In this way
the payment amount determined at outset is calculated to ensure the loan is repaid at a
specified date in the future. This gives borrowers assurance that by maintaining
repayment the loan will be cleared at a specified date, if the interest rate does not change.
Some lenders and 3rd parties offer a bi-weekly mortgage payment program designed to
accelerate the payoff of the loan.

An amortization schedule is typically worked out taking the principal left at the end of
each month, multiplying by the monthly rate and then subtracting the monthly payment.
This is typically generated by an amortization calculator using the following formula:

{\displaystyle A=P\cdot {\frac {r(1+r)^{n}}{(1+r)^{n}-1}}}

where:

{\displaystyle A} is the periodic amortization payment

{\displaystyle P} is the principal amount borrowed

{\displaystyle r} is the rate of interest expressed as a fraction; for a

monthly payment, take the (Annual Rate)/12

{\displaystyle n} is the number of payments; for monthly payments over

30 years, 12 months x 30 years = 360 payments.

Interest only
The main alternative to a principal and interest mortgage is an interest-only mortgage,
where the principal is not repaid throughout the term. This type of mortgage is common
in the UK, especially when associated with a regular investment plan. With this
arrangement regular contributions are made to a separate investment plan designed to
build up a lump sum to repay the mortgage at maturity. This type of arrangement is called
an investment-backed mortgage or is often related to the type of plan used: endowment
mortgage if an endowment policy is used, similarly a Personal Equity Plan (PEP)
mortgage, Individual Savings Account (ISA) mortgage or pension mortgage. Historically,
investment-backed mortgages offered various tax advantages over repayment mortgages,
although this is no longer the case in the UK. Investment-backed mortgages are seen as
higher risk as they are dependent on the investment making sufficient return to clear the
debt.

Until recently] it was not uncommon for interest only mortgages to be arranged without a
repayment vehicle, with the borrower gambling that the property market will rise
sufficiently for the loan to be repaid by trading down at retirement (or when rent on the
property and inflation combine to surpass the interest rate).

Interest-only lifetime mortgage

Recent Financial Services Authority guidelines to UK lenders regarding interest-only
mortgages has tightened the criteria on new lending on an interest-only basis. The
problem for many people has been the fact that no repayment vehicle had been
implemented, or the vehicle itself (e.g. endowment/ISA policy) performed poorly and
therefore insufficient funds were available to repay balance at the end of the term.
Moving forward, the FSA under the Mortgage Market Review (MMR) have stated there
must be strict criteria on the repayment vehicle being used. As such the likes of
Nationwide and other lenders have pulled out of the interest-only market.

A resurgence in the equity release market has been the introduction of interest-only
lifetime mortgages. Where an interest-only mortgage has a fixed term, an interest-only
lifetime mortgage will continue for the rest of the mortgagors life. These schemes have
proved of interest to people who do like the roll-up effect (compounding) of interest on
traditional equity release schemes. They have also proved beneficial to people who had
an interest-only mortgage with no repayment vehicle and now need to settle the loan.
These people can now effectively remortgage onto an interest-only lifetime mortgage to
maintain continuity.

Interest-only lifetime mortgage schemes are currently offered by two lenders –

Stonehaven and more2life. They work by having the options of paying the interest on a
monthly basis. By paying off the interest means the balance will remain level for the rest
of their life. This market is set to increase as more retirees require finance in retirement.

Reverse mortgages
For older borrowers (typically in retirement), it may be possible to arrange a mortgage
where neither the principal nor interest is repaid. The interest is rolled up with the
principal, increasing the debt each year.

These arrangements are variously called reverse mortgages, lifetime mortgages or equity
release mortgages (referring to home equity), depending on the country. The loans are
typically not repaid until the borrowers are deceased, hence the age restriction.

Through the Federal Housing Administration, the U.S. government insures reverse
mortgages via a program called the HECM (Home Equity Conversion Mortgage). Unlike
standard mortgages (where the entire loan amount is typically disbursed at the time of
loan closing) the HECM program allows the homeowner to receive funds in a variety of
ways: as a one time lump sum payment; as a monthly tenure payment which continues
until the borrower dies or moves out of the house permanently; as a monthly payment
over a defined period of time; or as a credit line.

Interest and partial principal

In the U.S. a partial amortization or balloon loan is one where the amount of monthly
payments due are calculated (amortized) over a certain term, but the outstanding balance
on the principal is due at some point short of that term. In the UK, a partial repayment
mortgage is quite common, especially where the original mortgage was investment-
backed.

Variations
Graduated payment mortgage loans have increasing costs over time and are geared to
young borrowers who expect wage increases over time. Balloon payment mortgages have
only partial amortization, meaning that amount of monthly payments due are calculated
(amortized) over a certain term, but the outstanding principal balance is due at some point
short of that term, and at the end of the term a balloon payment is due. When interest
rates are high relative to the rate on an existing seller's loan, the buyer can
consider assuming the seller's mortgage. A wraparound mortgage is a form of seller
financing that can make it easier for a seller to sell a property. A biweekly mortgage has
payments made every two weeks instead of monthly.

Budget loans include taxes and insurance in the mortgage payment; package loans add
the costs of furnishings and other personal property to the mortgage. Buydown mortgages
allow the seller or lender to pay something similar to points to reduce interest rate and
encourage buyers. Homeowners can also take out equity loans in which they receive cash
for a mortgage debt on their house. Shared appreciation mortgages are a form of equity
release. In the US, foreign nationals due to their unique situation face Foreign National
mortgage conditions.
Flexible mortgages allow for more freedom by the borrower to skip payments or
prepay. Offset mortgages allow deposits to be counted against the mortgage loan. In the
UK there is also the endowment mortgage where the borrowers pay interest while the
principal is paid with a life insurance policy.
Commercial mortgages typically have different interest rates, risks, and contracts than
personal loans. Participation mortgages allow multiple investors to share in a loan.
Builders may take out blanket loans which cover several properties at once. Bridge
loans may be used as temporary financing pending a longer-term loan. Hard money
loans provide financing in exchange for the mortgaging of real estate collateral.

Foreclosure and non-recourse lending

In most jurisdictions, a lender may foreclose the mortgaged property if certain conditions
occur – principally, non-payment of the mortgage loan. Subject to local legal
requirements, the property may then be sold. Any amounts received from the sale (net of
costs) are applied to the original debt. In some jurisdictions, mortgage loans are non-
recourse loans: if the funds recouped from sale of the mortgaged property are insufficient
to cover the outstanding debt, the lender may not have recourse to the borrower after
foreclosure. In other jurisdictions, the borrower remains responsible for any remaining
debt.

In virtually all jurisdictions, specific procedures for foreclosure and sale of the mortgaged
property apply, and may be tightly regulated by the relevant government. There are strict
or judicial foreclosures and non-judicial foreclosures, also known as power of sale
foreclosures. In some jurisdictions, foreclosure and sale can occur quite rapidly, while in
others, foreclosure may take many months or even years. In many countries, the ability of
lenders to foreclose is extremely limited, and mortgage market development has been
notably slower.
 16. MORTGAGE INSURANCE

Mortgage insurance is an insurance policy designed to protect the mortgagee (lender)

from any default by the mortgagor (borrower). It is used commonly in loans with a loan-
to-value ratio over 80%, and employed in the event of foreclosure and repossession.

This policy is typically paid for by the borrower as a component to final nominal (note)
rate, or in one lump sum up front, or as a separate and itemized component of monthly
mortgage payment. In the last case, mortgage insurance can be dropped when the lender
informs the borrower, or its subsequent assigns, that the property has appreciated, the
loan has been paid down, or any combination of both to relegate the loan-to-value under
80%.

In the event of repossession, banks, investors, etc. must resort to selling the property to
recoup their original investment (the money lent) and are able to dispose of hard assets
(such as real estate) more quickly by re ductions in price. Therefore, the mortgage
insurance acts as a hedge should the repossessing authority recover less than full and fair
market value for any hard asset.
 17. FUTURE PROSPECTS

Digital technology has disrupted businesses and industries from publishing to public
transportation, so can the mortgage industry be far behind? Actually, anyone who’s
applied for a mortgage recently will have recognized that things are already changing
fast.

That’s because the combination of digital technology, predictive analytics, machine

learning, complex repetitive tasks and oceans of data make the mortgage industry a fertile
environment for automation and a complete make-over. But what’s really driving change
are customer expectations. As Millennials rise in the workforce and move from their
parents’ basements into homes of their own, they are demanding that mortgages be as
easy to buy online as concert tickets, anytime anywhere they want, and at the best
possible prices.

Meeting that high expectation will require more innovation, disruption and technology
than has been deployed to date. But more technology comes with its own challenges.
Understanding new customers’ expectations, realizing those opportunities, recognizing
the concerns and creating the right solutions are the keys to a bright digital future in the
mortgage industry.

Latest developments in Mortgage banking:

The main cause behind the rise in investments in housing finance, that has grown rapidly
at a compound rate of growth of 78 % per annum from the previous figure of 45.6 %, is
the increase in the quantity of loan takeovers. The major development in the mortgage
banking sector is the financing package of $ 200 million which is granted by the
International Finance Corporation to Housing Development Finance Corporation. This
loan has been granted to upgrade the financial sector in India like supplying funds to
people who fall within the middle class income segment of India.
Facts about Mortgage Banking:

The public sector has been able to grab only 25 % of the share of investment made
towards housing finance. The importance of commercial banks have been grown
immensely now a days, on account of its increased participation in the direct housing
finance sector.

The percentage of participation in the direct housing finance sector has jumped from
approximately 27 % in the financial year 2000 to nearly 57 % in the financial year 2003.
Mortgage banking is presently being done by a large number of cooperative banks,
private companies dealing with housing finance, non-banking financial companies and so
on. The companies providing housing finance have gained immensely from the mortgage
banking sector.

Foreign Banks in Mortgage Banking:

The phenomenon of economic liberalization and globalization have aided the foreign
banks to enter the banking sector in India and presently various foreign banks have
started their mortgage finance segments in India. The most prominent banks dealing with
mortgage banking in India are:

 Standard Chartered Bank

 The Hong Kong and Shanghai Banking Corporation

 ABN Amro Bank

Some of the significant financial companies of the United States have also entered into
the banking sector in India and are involved in asset securitization.
Indian Banks Mortgage Banking:

According to the recent survey the commercial banks are going to further push back the
other financial institutions in the race for grabbing more housing finance investments.
The prominent commercial banks dealing with mortgage banking in India includes:

 The Industrial Credit and Investment Corporation of India (ICICI) Bank

 Housing Development Finance Corporation (HDFC)

 Life Insurance Corporation (LIC) Housing Finance Limited

 State Bank of India (SBI)

18. APPLICATION FORMS FOR MORTGAGE LOAN
 19. ANALYSIS & INTERPRETATION

The analysis is based on the responses given by customers through questionnaires.

AGE GROUP OF SURVEYED RESPONDENTS

TABLE 5.1:

Age group No. of Respondents

18 - 25 years 80

26 - 35 years 64

36 - 49 years 30

50 - 60 years 20

More than 60 years 6

CHART-5.1:

Sales

10.00%

3.00%
18-25years
26-35years
15.00% 40.00% 36-49years
50-60years
more than 60 years

32.00%

Analysis:- From the chart above we find that 47% of the respondents fall in the age group of 18 –
25 years, 25% fall in the age group of 26 – 35 years and 17% fall in the age group of 36 – 49
years. Therefore most of the respondents are relatively young (below 26 years of age). and 6%
respondent’s age are 50-60 years and 2% respondent’s age are 60 to above years.
 GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

TABLE-5.2

Sr. No. Category No. of Respondents Percentage

1 Married 140 70%

2 Unmarried 60 30%

Total 200 100%

Base 200 respondents

CHART-5.2

Marital Status

30.00%

Married
Unmarried

70.00%

Interpretation

From the table and graph above it can be seen that

 70% respondent’s are married.

 30% respondent’s are unmarried.
EDUCATIONAL QUALIFICATION OF RESPONDENT’S

TABLE-5.3

Sr. No. Category No. of Respondents Percentage

1 Under graduate 50 25%

2 Graduate 80 40%

3 Post graduate 70 35%

Total 200 100%

Base 200 respondents

CHART-5.3

Educational Qualification of Respondents

25.00%
35.00%
Under graduate
Graduate
Post graduate

40.00%

Interpretation

From the table and graph above it can be seen that

 25% respondent’s are under graduate.

 40% respondent’s are Graduate.
 35% respondents are Post graduate.
CUSTOMER PROFILE OF SURVEYED RESPONDENTS

TABLE 5.5:
 Customer profile No. of respondents

Student 15

Housewife 10

Working Professional 100

Business 40

Self Employed 20

Government service employee 15

Chart-5.5

120

100 3
3

80

60
100 4
40 4
5 6
20 40 5 6
1 2
15 2 20 15 respondents
10
0
nt i fe na
l
es
s
ye
d ic
e
ude ew is o is n po rv
st u s se
ho es bu em t
rof le f- en
gp s
rn
m
kin ove
r g
wo

Interpretation

From the table and graph above it can be seen that:-

51% of the respondents are working professionals, 22% are into business and 11% are self-
employed, 11% of the respondent’s are government service employee and 3% of the respondents
are student and 2% of the respondents are house-wife.

ANNUAL HOUSE HOLD INCOME?

TABLE-5.6
 Sr. No. Category No. of Respondents Percentage

1 Less than 2 lacs 98 49%

2 Between 2 to 5 lacs 62 31%

3 Between 5to 8lacs 30 15%

4 More than 8 lacs 10 5%

Total 200 100%

Base 200 respondents

CHART-5.6

Annual Household Income

5.00%
15.00%
Less than 2 lacs
Between 2 to 5 lacs
49.00%
Between 5to 8lacs
More than 8 lacs

31.00%

Interpretation

From the table and graph above it can be seen that

 49% respondent’s annual household income is less than 2 lacs.

 31% respondent’s annual household income is between 2 to 5 lacs.
 15% respondent’s annual household income is between 5 to 8 lacs.
 5% respondent’s annual household income is more than 8 lacs.

Do you know about HDFC housing development finance corporation LTD?

TABLE 5.7:

Category No. of Respondents

 Yes 164

No 36

CHART:-5.7

Awareness about HDFC LTD

9%

YES
NO

91%

Interpretation:-

From the table and graph above it can be seen that

 91% respondent’s are known about HDFC LTD

 9% respondent’s are not known about HDFC LTD
Table 5 .8:-

Reasons for getting the Mortgage Loan

Sr.No. Number of Reasons Percentage(%)

 a. Non-availability of funds 36

b. Reluctancy to pay cash in one go 35

c. Tax benefit 24

d. Any other 5

GRAPH:- 5.8

40
35
30
25
percentage of customers 20
15
10
5
0
non-availability ofreluctancy
funds tax benefit any other

Interpretation:-

To interpret the response of the questions, the figures shows that most of the customers
find the problem in availability of funds i.e. 36% and very less number of customers found
problem in paying cash in one go is 35%, customers get housing loan for tax benefits is 24%.
This was the expected response because a large number of people find a problem of availability
of funds which works as an obstacle in owning a dream home.

In today's life, people hardly earn both means and ends of life and they don't have much
of money to buy a home or a land to construct house because of cost of property. So, they take the
advantage of home loans provided by different banks at different terms feasible to the customers.
There are very less number of people, who don't own home even when they have sufficient funds
and they take the advantage of home loans because they don't want to pay huge cash in one go.

On the basis of study, it is concluded that most of people lack of money in fulfiling their
dreams and few of them were reluctant to pay cash in one go and wanted to pay their home loans
slowly in installments.

Table-5.9

From where you have got your home loan?

Name of Banks / company (%)Percentage of customers

HDFC LTD 55

Punjab National Bank 15

Standard Chartered Bank 07

ICICI BANK 20

Any other 03

To understand the response more effective and closely, it has been showed diagrammatically as
follows :-

GRAPH:- 5.9
 From where you have got your home financed

60

50

40

percentage of customers 30

20

10

0
HDFC LTDPNB SCBICICI BANK
any other

Interpretation:-

The analysis showed that a large number of customers prefer HDFC LTD as compared to
others. The data shows that 7% of customers took loan from Standard Chartered Bank, 20% of
customers from ICICI BANK, 15% Customers took loan from Punjab National Bank, 55% of
customers took loan from HDFC LTD and a 3% of customers fall under the category of 'Any
other' which included State Bank of India, Canara Bank, Punjab and Sind Bank, etc.

The data shows that most of people prefer HDFC LTD compared to public sector banks
and other private banks. This is because of the extra services provided by HDFC LTD. However,
there is less difference in figures of ICICI Bank and Punjab National Bank. But there is
considerable difference in figures of the two private sector banks i.e. ICICI bank and Standard
Chartered Bank. As ICICI is the market leader in the home loans sector. This may be the reason
for such difference in Standard Chartered Bank's percentage and ICICI Bank's percentage.
Another reason for specialized services in home loans, more amounts of loans, and efficient query
handling. However, the analysis showed that the people prefer HDFC LTD for home loan because
of their services and excessive feat compared to other banks.
 Table-5.10

Sources of information about Home Loans Scheme?

Sources of information (%)Percentage of customers

Newspapers 49

Magazines 16

Banners/Hoardings/Pamphlets 11

Word of mouth 20

Any other source 04

CHART:-5.10 percentage of source of information about home loans scheme

 20%

4% newspaper

49%
magazines
banners
word of mouth
11%
any other
16% source

Sources of information about Home Loans Scheme

Interpretation:-

The data shows that around 20% of customers got information from source of 'Word of
Mouth' which includes information from friends, relatives, colleagues etc. 49% of customers got
information from newspapers, only 16% of customers from magazines and 4% of customers got
information about home loans schemes under 'Any other source' and 11% through Banners/
Hoardings/Pamphlets .

Table-5.11

Opinion about the services of HDFC LTD?

 Services of HDFC LTD Percentage of customers agreeing

Strongly Agree Neutral Disagree Strongly

agree disagree

a. Professionally 86% 10% 4% - -

managed

b. Reliable & 67% 33% - - -

transparent

c. Socially responsible 75% 10% 15% 4% -

d. Customer care 20% 68% 8% - -

e. Query handling 20% 76% 4% - -

GRAPH-5.11

Opinion of customers about HDFC LTD

 90

80

70

60

50 strongly agree
percentage of customers 40 agree
neutral
30 disagree
20 strongly disagree

10

0
a b c d e
factor

Interpretation:-

Customers from HDFC LTD are quite satisfied from their services like query handling
and customers social responsibility of banks towards customers and professionally
managed services. They don't give so good response to reliability and transparency
services of banks. So, customer's satisfaction level toward HDFC LTD services is lightly
satisfied.

Table-5.12
Opinion of customers about home loan schemes?

HDFC LTD :-
Services of HDFC LTD Percentage of customers agreeing

Strongly Agree Neutral Disagree Strongly

agree disagree

a. Amount of loan 60% 35% 5% - -

b. Legal formalities 42% 45% 14% - -

c. Interest rates 32% 56% 12% - -

d. Repayment options 26% 64% 10% - -

e. Security demanded 20% 32% 48% - -

f. Installments 55% 40% 5% - -

g. Services 45% 30% 18% 6% 1%

h. Processing for 55% 24% 18% 3% -

sanction of loan
 GRAPH:- 5.12

Percentage of satisfaction level of customers of HDFC LTD

70

60

50

40 strongly agree
percentage of customers agree
30
neutral
disgree
20
strongly disagree
10

0
a b c d e f g h
factors

Interpretation:-

The analysis shows that the customers of HDFC LTD gave 60 percent of amount of loan
and legal proceedings, 56% to interest rates, 45% to proceedings and services, 55% to
installments. So, customer of HDFC LTD didn't give response regarding the services of the bank /
company except to the amount of loan and legal formalities.

FINDINGS
 1. HDFC LTD is having good brand image in the minds of customers.
2. Majority of the people have got loans from HDFC LTD only
3. Most of the customers are not aware of the products of HDFC home loans
4. Some of the customer’s felt that the interest rates are some what high
5. Some of the customer not having good faith on private banks like Standard chartered
bank, HSBC bank etc.
6. Most of the people directly go to HDFC to apply a home loan
7. Some of the customer of HDFC already benefited through HDFC home loan products and
services
8. HDFC LTD is providing good services to their customers.
9. ) The interest rates also some what high when compare to other banks

SUGGESTIONS

These suggestions have been discussed as follows:-

1) To increase their customers, the HDFC LTD should provide specialized services in this
sector. These services can be such as proper guidance to the customer regarding the processing of
loans, especially for the customers who are illiterate.

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

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

4) Although the interest rates on specific norms, yet customers seek less interest rate which can
lower their cost of house. So banks should try to lower their interest rates. Needles to say, that the
bank which is having lower interest rates, have the maximum clients for loans.
5) HDFC LTD provide loan according to the repaying capacity of the customer and his/her
eligibility. Due to which, some customers are not able to get amount of loan needed by them. So,
the HDFC LTD should soften their norms regarding the loan amount.

6) Create awareness: The Company has to take care of awareness creation about the products and
services among the customers.

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

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

9) The company has to identify the potential customers.

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

CONCLUSION

At its most basic, a mortgage is a loan used to purchase a house.

 There are two primary types of mortgages: fixed rate and variable rate.
 A fixed-rate mortgage is a loan that charges a set rate of interest that typically
does not change throughout the life of the loan.

 Fixed-rate mortgages enable buyers to spread out the cost of paying for an
expensive purchase by making smaller, predictable payments over a long period
of time.

 A variable-rate mortgage, also commonly referred to as an adjustable-rate

mortgage or a floating-rate mortgage, is a loan where the rate of interest can
change over time. When such a change occurs, the monthly payment is "adjusted"
to reflect the new interest rate. Over long periods of time, interest rates generally
increase. An increase in interest rates will cause the monthly payment on a
variable-rate mortgage to move higher.

 Variable-rate mortgages have lower initial interest rates than fixed-rate mortgages,
resulting in lower monthly mortgage payments, enabling buyers to afford more
expensive homes than they would be able to purchase with a fixed-rate mortgage.

 Variable-rate mortgages are significantly more complex than their fixed-rate

counterparts, and homebuyers may experience sudden and potentially significant
increases in monthly mortgage payments if interest rates rise.

 A monthly mortgage payment consists of a series of underlying components that

include principal, interest, taxes and insurance.

 In addition to the money required to cover the mortgage, obtaining a mortgage

often requires a substantial amount of money to cover the down
payment and closing costs.

 The amortization schedule is one of the most important, yet overlooked,

documents involved in the mortgage process. This schedule shows the true cost of
purchasing a home, including the amount of interest paid.
  Being eligible for a loan and being able to afford the property aren't necessarily
the same. Regardless of the size of a loan a lender offers, don't buy more house
than you can afford.

 A solid credit rating and a mortgage pre-approval will both be beneficial when
you are shopping for a home. Pre-approval show buyers that you are able to make
the purchase.

 There are many types of loan and many potential lenders. When shopping for a
loan, take your time and search for the best deal.

Shopping for a new home is exciting. It is also a little bit complicated. There's a lot to
think about and plenty of opportunities to spend more than you should. Like all major
financial decisions, home shopping should not be a decision made in haste.

A careful look at your finances, a thorough review of the amount you wish to spend, and
some consideration of the type of loan that you will comfortable with should all be part of
your pre-planning process. With just a little bit of careful planning and some patience,
your search for the home of your dreams can be a rewarding and financially responsible
experience that gives you a great place to live without breaking the bank.
 REFERENCES

REVIEWS

 Berstain David(2008), “Home equity loans and private mortgage insurance: Recent
Trends & Potential Implications”, Vol.3 No.2, August 2008, Pp. 41 - 53
 Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House Price”.Journal of
Housing Economics Vol. 4, No. 3,pp 27 – 34
 Fanning (1982), “The Demand for Home Mortgage Debt” Journal of Urban Economics,
Vol 11 No 2, November, pp. 770-774
 Godse (1983), “looking a fresh at banking productivity”, Journal of Real Estate
Literature, Vol. No. 13, Page 141 to 164.
 Haavio, Kauppi(2000) , “Residential Lending to Low-Income and Minority Families:
Evidence from the 1992 HMDA Data," Federal Reserve Bulletin,Vol no 80(2), December
2000 Pp-79-108
 Kulkarni (1979), “Development responsibility and profitability of banks” Journal of
Economic Perspectives, Vol 9 No 1 ,pp. 26-32.
 La courr, Micheal(2007) , “Economic Factors Affecting Home Mortgage Disclosure Act
Reporting” The American Real Estate and Urban Economics Association, Vol.2 No. 2
May 18, 2007, Pp. 45 -58
 La cour Micheal(2006) , “The Home Purchase Mortgage Preferences Of Lowand-
Moderate Income Households”, Forthcoming in Real Estate Economics , Vol 18, No 4 ,
December 20, 2006, p. 585.
 Vandell ,kerry D(2008), “Subprime lending and housing bubble:tail wag
dog?”International Journal of Bank Marketing, vol 21,no 2, pp. 53-7
 Brochure on home loans from HDFC LTD

NEWS PAPERS

 The Times of India

 Financial Express
WEB PAGES:-

http://www.hdfcindia.com/

http://www.hdfcindia.com/others/popup/news/hdfc_fin_result_june_30_08.html

www.hdfc.com

http://www.iloveindia.com/real-estate/housing-finance- companies/hdfc.html

http://www.loansnews.info/Home-loan/hdfc-home-loans/

http://www.hdfcindia.com/loans/hm-loan-documents.asp

http://www.thinkplaninvest.com/2009/01/hdfc-will-cut-home-loan-rates/

http://www.suncorp.com.au/suncorp/personal/home_loans/tips/faq.aspx

http://investing.businessweek.com/research/stocks/people/people.asp?ric=HDFC.BO

http://www.economywatch.com/companies/forbes-list/india/housing-development-finance-
corporation.html

http://www.hdfcindia.com/loans/home-loan.asp

http://docs.google.com/gview?a=v&q=cache:woJTMDV1HLYJ:www.hdfc.com/pdf/32AGM
%2520speech.pdf+hdfc+housing+finance+development+product&hl=en&gl=in

http://www.munichre.com/en/press/press_releases/2007/2007_10_30_profile_hdfc.aspx

http://www.hdfc.com.mv/faq.htm

http://ayaanbayaan.com/hdfc-ltd-financial-results-indian-gaap-for-the-period-april-to-june-
2009/

http://www.valuenotes.com/press/pr_HDFC_250ct05.asp?ArtCd=70013&Cat=C&Id=100
 BIBILOGRAPHY

BOOKS:

1) PRINCIPLE AND PRACTICE OF BANKING AND INSURANCE.

2) ORGANISATION OF COMMERCE.

WEBSITES:

1) WWW.WIKIPEDIA .COM
2) WWW.INVESTOPEDIA.COM
3) WWW.BANK GK.COM
4) WWW.INFORMATIONVINE.COM