DHFL

CONTENTS1. INTRODUCTION 2. COMPANY PROFILE 3. HOUSING LOAN SCHEMES 4. BRANCH PROFILE 5. ANALYSIS AND INTERPRETATION 6. SUMMARY OF FINDINGS ANNEXURES Questionnaire Bibliography ATNCC SHIMOGA Page 1 CHAPTER -1 INTRODUCTION      Introduction Scope of the study Objectives of the Study Methodology Used Limitations CHAPTER -2 COMPANY PROFILE            Introduction Vision Mission Values Management profile People in DHFL Awards Portrait of the company Head office and Regd. Office Branch and Regional office Capital Structure CHAPTER- 3 HOUSIN LOAN SCHEME HOUSING LOAN SCHEMES      Home Loan Home Extension Loan Home Improvement Loan Sampoorna Rakshak –Free insurance cover NRI Care Taker Loans ATNCC SHIMOGA Page 2   Plot Loans FIXED DEPOSIT SCHEMES     Aashray Deposits Cumulative Non Cumulative Small Savings Schemes CHAPTER –4 BRANCH PROFILE         History and Location Working and efficiency Management Structure Loan procedure Eligibility Documents Repayment Criteria Area covered by DHFL in India CHAPTER – 5 ANALYSIS AND INTERPRETATION Analysis Tables and Graphs CHAPTER- 6 SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION     FINDINGS Problems Suggestions Conclusion ANNEXURES ATNCC SHIMOGA Page 3 ATNCC SHIMOGA Page 4 . with special reference to "DEWAN HOUSING FINANCE CORPORATION LIMITED".  Questionnaire Bibliography "A Case study on Housing loan and Fixed Deposit Schemes". CHAPTER -1 INTRODUCTION  Introduction  Scope of the study  Objectives of the Study  Methodology Used  Limitations ATNCC SHIMOGA Page 5 . Construction of house in India has been one of the most important problem. as a result of high growth of population. social and Shelter is one of the most basic needs of the people. developing or underdeveloped country their object is every citizen of their country should have a one decent house in a suitable living environment. All over the world the having the house is major problem and continuous efforts have been made to meet the ever increasing needs of each generation. INTRODUCTION Housing is one of the basic human necessities. It ATNCC SHIMOGA Page 6 . It is fundamental for the physical. it may be developed. Most of the advanced countries also face this problem in varying degrees and dimensions. while the problem of providing housing is highly critical in the developing countries. Housing as a form of reproducible wealth and is a asset of the people and their country. Almost all governments. psychological. economic well being of people. The "DEWAN HOUSING FINANCE CORPORATION LTD". leased Rental finance. Mortgage loan etc. Solving the housing problems in India. This company’s main products are Home loan. It is not only a good consumption but also a productive investment. they need financial supports for construction of their own house. "The National Housing Bank" has started its business to give assistance and provide financial support to their people. ATNCC SHIMOGA Page 7 .has very difficult to fill the gap between supply and demand of houses.. Home Improvement loan. So for that. the Government and Private financial institutions are started their business to give financial assistances to people. The DHFL is providing loan for all the people. popularly known has DHFL has commenced its business to provide financial assistant and support to their customers. Home Extension loan. Housing is a important factor for development in both economic and welfare terms. The scheme seeks to provide improved to access housing loans to borrowers of constraints/ acquisitions/ up gradation of housing rural areas of the country. fishermen's and all types of people who want loan to build their own house in all over Shimoga. business people. self employed persons. "Swarna Jayanthi Rural Housing Finance Scheme" to mark the golden jubilee of India's independence. DHFL also has the special schemes facility known as. ATNCC SHIMOGA Page 8 . agriculturists.The DHFL's Shimoga branch is providing loan for all salaried persons. To know the consumer opinion regarding DHFL. To know the day-to-day operations of DHFL. business people self-employed persons. To ascertain the interest level on various housing loans of DHFL Methodology Used a) Primary Sources ATNCC SHIMOGA Page 9 .Scope of the study This company is concentrating to give loan to all the peoples of Shimoga district. Objectives of the Study To study the marketing efforts of DHFL in Shimoga city. To analyze and interpret the survey findings. They are concentrating to give loan to salaried persons. To compare the performance of DHFL in Shimoga branch with other Housing financial institutions in Shimoga. agriculturists and other type of people. study materials available in finance companies. such as annual reports of DHFL company. Hence details of some more critical points could not be disclosed here.  Shortage of time & finance. Internet.The study was conducted on making the survey and collected the data from primary sources through questionnaire and direct interview of manager and staff members of DHFL in Shimoga branch. b) Secondary Sources The secondary source being through published material. Limitations  Non availability of data has affected the project report.  Lack of co-operation from some respondents. ATNCC SHIMOGA Page 10 .  Several information were not disclosed by the concerned as they felt it was necessary to keep confidential.  The workers of the company have not give some related information because of shifting the company from one place to another place.  Only 50 respondents could be contacted. Study is only confined to only Shimoga branch. ATNCC SHIMOGA Page 11 . CHAPTER -2 COMPANY PROFILE  Introduction  Vision  Mission  Values  Management profile  People in DHFL  Awards  Portrait of the company  Head office and Regd. Office  Branch and Regional office  Capital Structure ATNCC SHIMOGA Page 12 COMPANY PROFILE Introduction DHFL is a housing finance company that has taken the road less traveled. The journey began on the 11th of April 1984. On this day, Rajesh Kumar Wadhawan began his mission to correct what had troubled him for years, the sad truth that most Indians couldn't get a housing loan on fair terms. The Founder Chairman saw the owning of a home as a critical element to the building of identity and confidence of every Indian. DHFL was only the second housing finance company set up in India. And its stated business objective was unusual to say the least, to provide access to housing finance to lower and middle income Indians. Most experts lauded Mr. Wadhawan's altruism but shook their heads at his apparent lack of business acumen. Especially as in the beginning DHFL disbursed funds from its own equity contribution and had a return on equity of less than 8% at a time when the interest rates were about 18%. But that is the difference between those who see things as they are and the visionaries who see things as they can be. Over two decades later, DHFL is still profitably doing what its founder intended it to do. DHFL has disbursed loans ATNCC SHIMOGA amounting to over 53 Page 13 billion, its non performing assets are the lowest in the industry. The Founder Chairman had a unique and timeless insight into the character of the majority of Indians who are generally dismissed as high credit risk. They respond unequivocally to trust. They have a very emotional relationship with the idea of an ‘own home.’ To them it isn’t an investment. It is a sanctuary. A symbol of who they are. They will not do anything to jeopardize this symbol of security. This insight was the prime mover behind DHFL. Today, DHFL has an asset base of over Rs. 3,580 crores with a strong presence across India through its 72 branches and 116 service locations. DHFL caters to a large section of Indians working in the Middle East through its over seas branch in Dubai. Vision  Transform lives of Indian households by enabling access to home ownership Mission  Be easily accessible to every Indian who desires to own a home. ATNCC SHIMOGA Page 14  Continuously configure our credit policy to make sure the maximum number of people can be eligible for loans.  Strive to be a learning organization. Balancing the unrelenting demands of corporate performance and the special needs of the target group the company caters to requires continuous innovation.  Dedicated to team excellence and employee happiness  Be single mindedly committed to the betterment of our society. Understand our customer’s inner needs and speak their language. Management Profile Leading a company like DHFL needs a very singular perspective.  Be totally transparent in all our dealings. Values  Treat all our customers with dignity and respect.  Find ways to help our customers tide over difficult times  Spread our network to every corner of India  Respond promptly and courteously to all enquiries. ATNCC SHIMOGA Page 15 .  Go to any length to make sure our customers don’t feel intimidated. He is widely recognized as an industry expert and his opinions are eagerly sought by policy makers and business leaders for matters relating to the financial services sector. Kapil Wadhawan is an MBA (Finance) from Edith Cowan University at Perth. took over the reins of this company in October 2000.Mr. Kapil Wadhawan Vice Chairman Managing Director. Mr. Australia. ATNCC SHIMOGA Page 16 . Kapil Wadhawan. Mr. DHFL Mr. Before taking over as the Managing Director. Vice Chairman Managing Director. Dewan Housing Finance Corporation Ltd. he was the Executive Director on the board of DHFL. Wadhawan has taken many innovative steps to build the organization into a world class financial services company. Mr. increase business volumes and make the company a dominant player in its sector. Anil Sachidanand is hailed as the mortgage banking financial expert and has been active in the residential mortgage business for more than two decades. He contributes immensely to philanthropic activities and has done a lot for the economically weaker sections of society. Anil Sachidanad CEO DHFL Mr. he would be primarily responsible for bringing in a strong focus to the retail side of the business. A key role would be to improve productivity levels.Mr. Wadhawan is known for his dynamic leadership qualities and his ability to take quick decisions. one of India’s largest housing finance companies. Anil Sachidanand is a professional with a proven track record of setting up ATNCC SHIMOGA Page 17 . Mr. As the CEO of Dewan Housing Finance. distribution franchises and other marketing channels. Adventity in Houston. train and manage effective teams on a national scale. Anil inculcated diverse experiences in companies like IDBI Bank where he was the Head of Retail Mortgage & HDFC Bank as the Business Head Mortgages. In this first innings. Texas for four years. He is a veteran team builder with an innate ability to recruit. he was responsible for the growth of the organization from an office in Mumbai to having a national footprint with a network of 56 offices. ATNCC SHIMOGA Page 18 . He joined DHFL years back as a Management Trainee and progressed to the role of National Manager in 10 years. Sixteen years later he got a taste of the global scenario through the US based company. Anil has amassed vast experiences over the last two decades in building infrastructure for achieving the business goals by establishing branch network. Here.processes and creating & managing effective teams in diverse environments. he exhibited skills of successfully migrating business model and processes from USA to India where he was actively involved in expanding business opportunity from a mere three branches to 32 States in US. SSI and large corporates. He has developed and marketed financial and IT based banking products and h as driven quality initiatives like six sigma in banking operations and provided management consultancy services for quality and improvements in the manufacturing industry. operations and IT in USA. Rajeev Sathe is a senior banker with about three decades of diverse managerial experience in banking operations with State Bank of India . ATNCC SHIMOGA Page 19 productivity . Rajeev Sathe COO.Mr. DHFL Mr. In India he has handled a wide gamut of credit in rural and semi urban areas. He is an engineer and post graduate in bank management (NIBM). Internationally he has managed trade finance. with a dissertation on applying IT for control of priority sector advances. Sachidanand believes in delivering consistent growth record and delivery of bottom line performance. Mr. retail banking. ATNCC SHIMOGA Page 20 . Rakesh Designation Kumar Wadhawan Mr. Name Mr. Anil Sachidanand ATNCC SHIMOGA Chairman Vice Chairman & Managing Director Chief Executive Officer Page 21 . Kapil Wadhawan Mr.People in DHFL Our people are qualified and motivated professionals. They are committed to providing efficient and cost-effective financial services which meet the needs of our customers. It is their constant endeavour to make DHFL the finest organization to work at and to do business with. K. P. Kohli Shri Ashok Kumar Gupta Mr. P. Khosla Shri R S Hugar Shri G.Board of Directors Shri Rakesh Kumar Chairman Wadhawan Shri Kapil Wadhawan Vice Chairman & Managing Shri Dheeraj Wadhawan Shri Sarang Wadhawan Shri R. Anthony Hambro Shri Ajay Vazirani Shri V. Chopra Director Director Director Director Director Director Director Nominee Director Director Director ATNCC SHIMOGA Page 22 . the biggest award is always the satisfaction of the customer.Awards To any business. 200 Silver CIO Award'08 by .CIOL Dataquest Enterprise 8 Connect Awards 200 Excellence in Design among HFI's at Property Expo 7 October'07 by (Maharashtra Chamber of Housing Industry) 200 Excellence in Design among HFI's at Property Expo 7 April'07 by (Maharashtra Chamber of Housing Industry) 200 SRS Real Estate & Infrastructure Award for National 7 Excellence (Real Estate Watch Monthly) 200 Award 7 Housing Industry) 200 Best Customer Service HFI's Property (5th Housing And 4 Real Estate Exhibition) 200 Project Crayons corporate Social responsibility Award of ATNCC SHIMOGA Appreciation (Maharashtra Page 23 Chamber Of . But every now and again it’s nice to be recognized by our peers. 4 200 Housing Company of the Year 2 200 Young Achiever Awards (Accommodation Times) 2 200 Rashra Nirman Ratna Awards 2 199 Udyog excellence Awards 1995 5 199 Housing company of the Year 2 199 Udyog Gaurav Award 1 PORTRAIT OF COMPANY Head /Corporate Office ATNCC SHIMOGA Page 24 . Hubli Bellary. Gokak. Mangalore Karwar My sore Mandya Shimoga Hassan ATNCC SHIMOGA Page 25 . Tumkur Belgaum Bagalkot. Fort. Sir P M Road.Dheeraj Arma. Mudhol. Bidar. Harapanahalli Gulbarga Raichur. Mumbai .400051 Regd. Anant Kanekar Marg. Station Road. Haveri. 2nd floor. Office Warden House. Davangere Chitradurga. Bijapur.400001 Branch offices of DHFL In South Zone Branch offices Service centre Bangalore Kolar. Chikkodi. 6th floor. Bandra [E] Mumbai . Amaravathi Baroda Anand. Parbhani. Idukki Kanpur Kozhikode. Dindigul Vijay Wada Guntur. Narsipatnam. Eluru Vizag Rajahundry. In West Zone Branches An kola Service Centres Jalgaon. kasargode Madurai Theni.Chennai Vellore Cochin Allepey. Yavatmal Surat Navsari Navy Mumbai Pen Ahmedabad Kalol In North Zone ATNCC SHIMOGA Page 26 . Alwar Jodhpur Pali Nagpur Bhandara. Halol Jaipur Dansa. Khargone. equity ratio.83 4.50 2. Mutual Funds 1. Ghazi bad Raipur Rajanandgon CAPITAL STRUCTURE DHFL has been prudent in its financial planning by regular endeavor to raise low cost finds and adequate leverage reflected by comfortable debt. Sager Chandigarh Patiala. Body Corporate 18. SHARE HOLDERS PATTERN Category %age of Share Holders 1.81 Total ATNCC SHIMOGA 100. Individuals 11. Jakandhar Indore Khandwa. Barasat New Delhi Gurgaon. Promoters 54.09 5.00 Page 27 . UTI 14.Branches Service Centers Bhopal Itargi. Kolkata Durgapur.12% against the minimum stipulated requirements of 12%. The capital adequately ratio of DHFL as at March 31-2008 was 20.19 3. CHAPTER- 3 HOUSING LOAN SCHENMES HOUSING LOAN SCHEMES  Home Loan  Home Extension Loan  Home Improvement Loan  Sampoorna Rakshak cover  NRI Care Taker Loans  Plot Loans  FIXED DEPOSIT SCHEMES  Aashray Deposits  Cumulative  Non Cumulative ATNCC SHIMOGA Page 28 –Free insurance  Small Savings Schemes ATNCC SHIMOGA Page 29 HOUSING LOAN Dewan Housing Finance Corporation Limited, this is a company which offers the financial services to the people. The company offers intangible packages in the form of financial services, which are not the physical goods as the product of the company. The main business and aim of the Dewan Housing Finance Corporation Ltd, is providing long term loans to individuals, co-operative societies, Corporate bodies and associations of persons for the purpose of acquisition construction and improvement of the residential houses. DHFL offers different types of Housing loans schemes i.e. Home loan, Home Extension loan and Home Improvement loan etc., LOANS ATNCC SHIMOGA Page 30 but not exceeding 85% of the cost of the property. saving habits etc. educational qualifications. interest rate applicable and tenure of loan. DHFL has a Regressive Payment Scheme meant for home loan seekers who are due for retirement within the term of the loan and have applied jointly with an eligible younger coapplicant. age. ahead of the contracted schedule in part or full. DHFL Home Loans DHFL Home Loans are offered to Individuals. Corporate bodies and Associations of Persons. number of dependents.00. assets. Co- operative Societies. 100. The term however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for self employed individuals). co-applicant's income. The size of the EMI depends on the quantum of loan. Prepayment of the loan.000/. is permitted subject to payment of ATNCC SHIMOGA Page 31 . The actual loan amount is determined after taking into account factors like repayment capacity. The home loan seeker can avail loans upto Rs. liabilities. stability and continuity of income. The tenure of the loan ranges from 1 to 20 years. 50 Maximum 1.00.00.000 5-10 years 10. DHFL has pioneered a home loan for self employed people.00 5-20 years 10. Home loan for the self employed.00.nominal fees / charges as stipulated by DHFL from time to time. As a category they have been ignored by the housing finance community.1 Range Amount Tenure (Rs) Rate of interest Minimum 1. TABLE 3. There are two reasons for this reluctance to do business with them. The first reason is that they have variable monthly income.50 0 Samarth. even the prospects of some months ATNCC SHIMOGA Page 32 .  The applicant is self employed /trader or engaged in service industry.  The applicant should have been in the same line of business for a minimum period of 5 years or should have inherited the business from parents. DHFL has pioneered a process which facilitates the assessment of income through an independent source other than the income tax authority.  The business premises should be owned / inherited. they don’t have the necessary documentation that proves them credit worthy.without income. Eligibility criteria  The self employed person should be more than 18 years and less than 65 years of age.  Sales Tax Registration or any other registration of business required by statutory authorities / local laws is mandatory.  The applicant should be able to contribute at least 40% of the total sum required. The second is that even if they have the money. ATNCC SHIMOGA Page 33 . interest rate applicable and tenure of loan. 100. enclosing open balcony. The customers can avail these loans upto Rs. The actual loan amount is determined after taking into account factors like repayment capacity.00. however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for the self employed individuals).000-/ but not exceeding 85% of the cost of the extension. The tenure of the loan ranges from 1 to 20 years. saving habits etc. building an extra room on the terrace etc.  DHFL Home Extension Loans Home Extension Loans are offered to individuals who wish to extend the existing accommodation. liabilities. The term. Business premises should not be on encroachment land without title to property or deviated in construction from approved plans. co-applicant's income. The size of the EMI depends on the quantum of loan. stability and continuity of income. assets. say by adding a bedroom. ATNCC SHIMOGA Page 34 . educational qualifications. number of dependents. age. ahead of the contracted schedule in part or full. co-applicant's income. educational qualifications. is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time. The tenure of the loan ranges from 1 to 10 years. liabilities. Prepayment of the loan. age. assets. saving habits etc. Customers can avail these loans up to Rs. number of dependents. The actual loan amount is determined after taking into account factors like repayment capacity.DHFL has a Regressive Payment Scheme meant for applicants who are due for retirement within the term of the loan and have applied jointly with an eligible younger coapplicant.  DHFL Home Improvement Loans Home Improvement Loans are offered to Individuals for the purpose of renovation and repainting their homes. stability and continuity of income.100.000-/ but all loans availed not exceeding 85% of the total documented cost of the property. 00. The term however does not extend beyond the retirement age or 60 years whichever is ATNCC SHIMOGA Page 35 . Prepayment of the loan. is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time.earlier (65 years for the self employed individuals). Sampoorna Rakshak . personal accident and loss of job. DHFL has a Regressive Payment Scheme meant for applicants who are due for retirement within the term of the loan and have applied jointly with an eligible younger coapplicant.Free Insurance Cover Sampoorna Rakshak is a triple protection insurance plan designed specially for the customers of DHFL. This unique insurance plan has been arranged in association with Future Generali India Insurance Co. Ltd. ATNCC SHIMOGA Page 36 natural . ahead of the contracted schedule in part or full. interest rate applicable and tenure of loan. This plan provides insurance cover for damage caused to property due to disasters/calamities. The size of the EMI depends on the quantum of loan. strike.The plan covers your home for losses due to Fire. Leakage from Automatic Sprinkler Installations. Aircraft Damage. Malicious damage. Apparatus and Pipes. Lightning. DHFL offers Sampoorna Rakshak to its customer FREE of cost. Riot. Bush Fire. Bursting and/or overflowing of Water Tanks.  NRI Care Taker Loans NRI Home Loans are offered to Non Resident Indians (NRIs) for residential properties in India. Impact damage. Earthquake. Subsidence and landslide/rockslide. Missile testing. These loans can be ATNCC SHIMOGA Page 37 . Explosion & Implosion. construction. The size of EMI depends on the quantum of loan. The tenure of the loan ranges from 1 to 15 years.000-/ but not exceeding the 85% of the cost of property / estimate (for improvement / extension). 100. The term however does not extend beyond the retirement age or 60 years whichever is earlier. Prepayment of the loan. age. stability and continuity of income. number of dependents.availed for purchase. liabilities. interest rate applicable and tenure of loan. improvement & extension also. ahead of the contracted schedule in part or full.  DHFL Plot Loans ATNCC SHIMOGA Page 38 . educational qualifications. The actual loan amount is determined after taking into account factors like repayment capacity. co-applicant's income. is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time. 00. The NRI's can avail these loans upto Rs. saving habits etc. assets. a. Silver Jubilee Fixed Deposit Scheme TABLE 3.00. Prepayment of the loan. ahead of the contracted schedule in part or full. The loan seekers can avail these loans upto Rs. to purchase non .2 Period in ROI p. whether salaried or self employed. The tenure of the loan ranges from 1 to 20 years.DHFL Plot Loans can be availed by individuals. is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time. 10. The term however does not extend beyond the retirement age or 60 years whichever is earlier ( 65 years for self employed individuals). Annualized Days ATNCC SHIMOGA Yield Senior Senior Citizens (ROI Citizens Page 39 .but not exceeding 85% of the cost of the plot.agricultural land situated within Municipal / Local Development Authority limits.000/. 03% 11.41% 11.000/. the same will be treated as an ordinary Fixed Deposit & the premature payment rules will be applicable accordingly.30% 11.5. additional deposits in multiple of Rs.000/-.25% extra for Senior Citizens Additional Conditions: In case of a premature payment of the DHFL Silver Jubilee Fixed Deposit.thereafter  0.) 399 days 10.05% 599 days 10.25% 11.a.14% 10.75% 10.85% 10.92% 11.60% 899 days 10.p.70% 1099 10. 1.52%  Minimum Deposit Rs.05% 11.95% Yield) 11. ATNCC SHIMOGA Page 40 .19% 11.80% days Annualized 10. existing DHFL Customers & Shareholders Cumulative Scheme: (Rates effective from 1st November 2008) TABLE 3.3 CUMULATIVE SCHEME (I) Certification Period Rate of Interest Scheme for Rs.25% Months compounding 12 24 36 48 60 72 84 Minium 10.051 10.066 8.410 6.25% 10.212 7.25% 10. Widows.25% 10.1000/- ATNCC SHIMOGA Page 41 .78% 10.568 5.768 6.00% 10. Yield (Half in Half yearly (p.30% 10.00% 10. Armed Forces Personnel.25% 10. Aashray Deposits 0.a) 10000/- Yearly Desposits Compounding) (Rupees) 9.2000/- Additional deposit in multiple of Rs.05% 10.62% 10.00% 10.10% 10.25% extra for Senior Citizens.00% deposit Rs.139 5. 25% 10.25% 9.80% 9.000/Amount of Maturity Value will be in multiple of Rs.80% 10.00% 10.Non .05% 10.80% 9.00% 10.) Yearly) 9.00% 10.10% 10.30% 9.00% 10.90% 10.Cumulative Scheme: (Rates effective from 1st November 2008) TABLE 3.50% 9.00% 10.00% 10.30% 9.10.1000/- ATNCC SHIMOGA Page 42 .10% 10.90% 10.4 NON-CUMULATIVE SCHEME (II) Rate of Rate of Rate of Rate of Interest Period in Interest Interest Interest Months (Payable (Payable (Payable Half (Payable 12 18 24 36 37-59 60-84 Minium Monthly) Quartely) Yrl.20000/- Minimum desposit for others Rs.80% 10.40% 10.25% deposit for Monthly Interest Plan is Rs.90% 10.05% 10. and in multiples of Rs. Small Savings Scheme: (Rates effective from 1st November 2008) TABLE 3.25% 10.100/- ATNCC SHIMOGA Page 43 .00% flexible subject to a minimum of Rs.500/.5 SMALL SAVINGS SCHEME (III) Monthly Deposit Period of Months Rs 500 Upto 36 Months Above 36 upto to 84 500 Months Recurring Deposit amount per month can be Rate of Interest% 10. CHAPTER –4 BRANCH PROFILE  History and Location  Working and efficiency  Management Structure  Loan procedure  Eligibility  Documents  Repayment Criteria  Area covered by DHFL in India ATNCC SHIMOGA Page 44 . Appraisal officer.BRANCH PROFILE History Dewan Housing Finance Corporation Ltd popularly known has DHFL has commenced its business in the year 1994 with only three workers in Shimoga branch. Accountant. Service Centre in charger. Recovery officer. ATNCC SHIMOGA Page 45 .. Manager. mainly who want to build their own house and this company has encouraging people to have their own house with giving easy finance. with an aim to offer financial assistance to home acquires to actualise their dreams owing a house. Business executive and Administrative assistant with proper computerised accounting network.e. Technical officer. At present it is working with eight workers in Shimoga. i. This company has started his business in Shimoga with the aim of to give a financial assistance to all required people in Shimoga. ATNCC SHIMOGA Page 46 .ial benefits and also DHFL has inviting the savings of customers and they collecting fixed deposits from their customers and other people with higher rate of return. ATNCC SHIMOGA Page 47 .MANAGEMENT STRUCTURE In Shimoga Branch Branch Branch Manager Technical officer Appraisal officer Accountants Officer Recovering Officer Service center Incharger Marketing / Business Executive Business Executive Loan Procedure  The appraisal officer attends to the queries of a prospective borrower various details examples: eligibility details are discussed during the meetings.  The appraisal officer conducts the interview. ATNCC SHIMOGA The amount Page 48 to be disbursed is .5% of their loan amount the fees are non refundable  The data for the personal interview is fixed up as per the annual convenience of the office and the party. which is 1. That of the branch manager should sustain recommendations of the appraisal officer. The file is then recommended for sanction and sent across to the corporate office. The loan agreement and other documents are signed.  The leagal officer then prepare a legal report after studying the property documents in details .  The authority concerned sanctions the loans proposal. The borrower pays the processing fees.  The appraisal officers study the file and discuss the case with the branch manager.The technical officer visits the property & submits the technical reports.  The borrower submits all the leagal documents to the leagal officer.  9. ATNCC SHIMOGA Page 49 .recommended by technical officer as per the stage of completion of construction.  The cheque for the amount disbursed is collected. the same is handed over to the borrower.  The signed cheque is then received and after checking once again whether all the requirements are compiled with . which is sent to the corporate office for the signature of the authorized signatories.  The disbursement memo is prepared and signed by the appraisal legal and technical officer countersigned by the branch manager.  The accounts department then prepares the cheque. The disbursement memo is attached with important documents like guarantor’s salary slip and form etc. Documents Depending upon borrowing capacity they the customers target and loan have to submit the documents to DHFL. For Salaried Persons  Salary slip or certificate with details of deductions.. They are as follows. ATNCC SHIMOGA Page 50 following . they have to fulfill these following requirements.  Guarantee person’s or surety person’s income  Assets. Liabilities and savings habits proof etc.  Educational qualification.  Repayment capacity and age .  Number of dependents and their income.Eligibility The people who want to take a loan from the DHFL.  Co-applicants income. 1.  Stability and continuity of income.  Copy of qualification certificate.  Copy of proof by business premises or shop ownership.  Proof of Residence.  Copy of computation Income statement.  Copy of Ration card.  Copy of last 3 years Balance Sheet and Profit and loss duly certified by a CA. ATNCC SHIMOGA Page 51 .  Brief profile of Business or Professionals. For Employed Businessman or Professionals. Common Documents  Copy of bank pass book of statement for last 6 months.  TDS certificate copies. Employment certificate as per our format. 2.  Copy of last 3 years Income Tax Returns duly certified by a chartered account. 3.  Latest copy of form No 16  Proof of additional income in any. Holler. Tarikere. Hassan and Chikkamagalur. Kadur and Birur. Aynor. Bhadravathi. Hosanagar. The places covered are as follows: Shimoga. DHFL collects amounts by making composite various places on a date which is previously fixed or ask his banker to make payments regularly on his behalf or amounts is paid through deduction from his salary. Thirthahalli. Holehonnur. Area Covered by DHFL in Shimoga Branch DHFL has concentrated its Marketing activities to words the all over the Shimoga. Honnalli. ATNCC SHIMOGA Page 52 . Chikkamagalur and Hassan. Copy of Age proof. Repayment Criteria The DHFL has EMI it means Equated Monthly Installment payment to repay the loan amount. Payments are done through the bank by issuing of cheques or cash. Shikaripura. CHAPTER – 5 ANALYSIS AND INTERPRETATION  Analysis  Tables and Graphs ATNCC SHIMOGA Page 53 . ANALYSIS AND INTERPRETATION The most important objective of the study of in our project report is to understand the customer attitude to wards the "Housing loans and Fixed Deposit Schemes" of service provided by DHFL in Shimoga branch. DHFL has providing the house loan facility and fixed deposit facility with regard. The Analysis and survey was conducted by getting opinion of the DHFL customers and other peoples. The following 10 graphs and tables are showing the DHFL's ATNCC SHIMOGA Page 54 . i am making questionnaire and interviewed the customer of DHFL and other peoples to take complete information of DHFL Company and making the comparison of other companies and customers opinion about DHFL company. performance and their business and their position in housing finance sector in Shimoga city. ATNCC SHIMOGA Page 55 . 34% of of the customer lies in between the age group of 30 to 40 age. ATNCC SHIMOGA Page 56 . of respondents 06 Percenta ge 12 11 22 17 34 16 32 50 100 Sources : questionnaire Interpretation: Result of age group of customers are show in the above tabulation analysis can be made 12% of the customer in between the age group of 18 to 25.1. 22% of the customer lies between the age group of 25 to 30.Table 5. And 32% of the customer are comes in between the age group of 40& above.ge group Age group 18-25 years 25-30 years 30-40 years 40 and above Total No. 2.No. of respondents 9 8 25 8 Percenta ge 18 16 50 16 50 100 Sources : questionnaire regarding educational qualification of the customers are shown in the above tabulation analysis can be made 18% of the customers have passed SSLC and 16% of ATNCC SHIMOGA Page 57 . of respondents 18-25 years 25-30 years 30-40 years 40 and above 12% 32% 22% 34% Table 5.Educational qualification of customers. Qualificati on SSLC PUC DEGREE PG and Others Total Interpretation: Results of No. C passed customers are take 2nd place.G& others are take last place they are 16%.U.L.C and P.customers have passed P. of respondents ATNCC SHIMOGA Page 58 PG and Others . they are 18% . No. they are dominating the others and S.U.C & P.S. of respondents 25 20 15 10 5 0 SSLC PUC DEGREE No.G respectively. But the Degree completed customers are in maximum number because they are 50% of the total. P. Table 5.3 Occupation of customers Occupation Govt. of respondents 12 Percentage 16 32 10 20 12 50 Sources : Questionnaire: 24 24 100 Interpretation: From the above table the details analyses of the occupation of the customers of the DHFL are as follows. It is clear that about 24% of the persons respondents are the government employees out of 100% respondents. From the above table analysis it is clear that most of the customers of DHFL are Private employees who are utilizing the service of DHFL to maximum extent and in the best manner. 32% of the customers are private employees and about 20% of the customers of DHFL are from business people and 24% of customers are from other categories. employees Private employees Business peoples Others Total No . ATNCC SHIMOGA Page 59 . of respondents 16 12 12 10 Govt. employees Private employees Business peoples ATNCC SHIMOGA Page 60 Others .No . of respondents No . ATNCC SHIMOGA Page 61 .4.25000 to Sources of Questionnaire Interpretation: From the above income per annum table.25000 Rs.50000 and 17 34 above Total 50 100 annum Below Rs.and 20% of customers are having income from Rs 25000 to 35000 and about 28% of the people are having income of Rs 35000 to 50000 out of . it is clear that 18% of respondents having income below 25000.Annual income the customers Income per No. of Percentage respondents 9 10 18 20 35000 Rs.Table 5. 34% of the customers having more than Rs 50000 income.35000 to 14 28 50000 Rs. 25000 18% 34% Rs.25000 to 35000 20% 28% Above table.35000 to 50000 Rs. Only the high and middle income groups of persons are getting the service rendered by DHFL.50000 and abov . high. ATNCC SHIMOGA Page 62 Rs. of respondents Below Rs. middle and low group. clears that the customers of DHFL are from all class of people group.No. ATNCC SHIMOGA Page 63 .knowledge of DHFL Answe No.5 .Table 5. So the majority of the customers were know about DHFL. of Percenta respondents ge Yes 42 84 No 08 16 Total 50 100 r Sources : Questionnaire Interpretation: From the above table shows that 84% of the customer must know about the DHFL but remaining 16% of the customers who don’t know about DHFL. of Percenta Respondents 40 10 50 ge 80 20 100 Sources : Questionnaire The above table show that out of 50 customers.6 Awareness of services provided by DHFL Awarenes s Yes No Total No.No. 80% of customers are aware about services provided by DHFL but ATNCC SHIMOGA Page 64 . of respondents 16% Yes No 84% Table 5. remaining 20% of respondents are not aware about what type of services are provided by DHFL. ATNCC SHIMOGA Page 65 . No.7Type of loan taken from DHFL Type of loan No of Percenta Fixed deposit Housing loan No accounts Total Respondents 15 28 7 50 ge 30 56 14 100 Source : Questionnaire Interpretation: It is clear that 30% of customers have fixed deposits in DHFL. and 56% of the customers are taking housing loan in DHFL and remaining 13% of the customers have no account in DHFL. of respondents Yes No 20% 80% Table 5. ATNCC SHIMOGA Page 66 . From the above analysis clear that there is a great demand for home loans because every people have a dream to have their own house. No of Respondents No of Respondents 28 15 7 Fixed deposit ATNCC SHIMOGA Housing loan Page 67 No accounts . 8.000 to 1. 34%of customers have taken loan of Rs 1lakh to 2 lakh and 24% of customers have taken loan amount of 2lakh & above but remaining 14% of respondents haven’t taken loan from DHFL.000 Rs 100000 to 200000 Rs 200000 &above No loan taken Total No of Percentage respondents 10 5 17 12 7 50 20 10 34 24 14 100 Source : Questionnaire Interpretation: From the above loan borrowed from DHFL table it is clear that 20% of customers have taken loan below Rs 50000.00.000 Rs 50. ATNCC SHIMOGA Page 68 .10% of customers have taken loan of Rs 50000 to 1 lakh.Amount of loan borrowed from the DHFL? Loan amount(RS) Below Rs 50.Table 5. 000 Rs 50.000 Rs 100000 to 200000 Rs 200000 &aboveNo loan taken Table 5.No of respondents No of respondents 17 12 10 7 5 Below Rs 50.9 Customer opinion about rate of interest Opinion Excellent Good Satisfied Not satisfied Total No of Percenta Respondents 3 11 11 25 ge 6 22 22 50 50 100 Sources :Questionnaire Interpretation: The above table shows that the opinion of the different respondents about the rate of interest ATNCC SHIMOGA Page 69 charged on the loan .00.000 to 1. Of that 6% having a Excellent opinion about rate of interest charged by DHFL and 22% of customers having a Good opinion about DHFL's rate of interest and 22% customers were satisfied about rate of interest charged by DHFL . No of Respondents No of Respondents 25 11 11 3 Excellent Good Satisfied Not satisfied So 50% of respondents are not satisfied about rate of interest charged by DHFL.taken by customers.But remaining50% out of 50 customers they are not satisfied with the rate of interest charged by DHFL. ATNCC SHIMOGA Page 70 . Customer service Excellent Good Satisfied Not satisfied Total No of Percentage respondents 9 10 14 17 50 14 18 2850 18 100 Source : Questionnaire Interpretation: No of respondents Excellent Good Satisfied Not satisfied 9 17 10 14 The above table showing the customers opinion about ATNCC SHIMOGA Page 71 .Table 5.10 Opinion about customer services in DHFL. customer services provided by the DHFL by its customers. This table shows that the customer are having a satisfactory opinion about customer services provided by DHFL. ATNCC SHIMOGA Page 72 . 14% of customers having Excellent and 18% of customers having both Good and Not Satisfied opinion about customer service and but remaining 50% of customers having a satisfactory opinion about customer service provided by DHFL to their customers. Opinions Excellent Good Satisfied Not satisfied Total No of Percenta Respondents 6 10 25 9 50 ge 12 20 50 18 100 Source : Questionnaire Interpretation: The above table showing the customers opinion about the process involved to give loan from DHFL.Table 5. This table shows that the satisfactory opinion about process involved to give loan from DHFL because 50% of respondents have satisfactory opinion. 20% of customers have good opinion but 18% of respondents have not satisfied about the process involved to give loan from DHFL ATNCC SHIMOGA Page 73 .11Opinion about the process involved to give loan from DHFL. 12% of customers have excellent opinion. ATNCC SHIMOGA Page 74 . of respondents 20 30 50 Percenta ge 40 60 100 Source: Questionnaire From the above table showing that 40% of customers have find difficulties in getting loan from DHFL but remaining 60% of the customers are not face any difficulties in getting ATNCC SHIMOGA Page 75 .No of Respondents Excellent Good Satisfied 18% Not satisfied 12% 20% 50% Table 5.12 Difficulty in getting loan from DHFL Difficultie s Yes No Total Interpretation: No. of respondents ATNCC SHIMOGA Page 76 25 30 . No. It shows that consumers face reltively less difficulties in getting loan from DHFL. of respondents No Yes 0 5 10 15 20 No.loan from DHFL. ] Table 5. but remaining 30% of peoples are not recommended any peoples because of different reasons. ATNCC SHIMOGA Page 77 . Out of 50 respondents opinion 70% people have recommended their friends and relations to take loan from DHFL.13 Recommendations to friends and relatives Recommendat ion Yes No Total No of Percenta respondents 35 15 50 Source: Questionnaire ge 70 30 100 Interpretation: The above table showing that the DHFL customers recommendation to their friends and relations to take loan from DHFL to construct their house. 30% Yes. 70% ATNCC SHIMOGA Page 78 .No. Table 5. ATNCC SHIMOGA Page 79 . Comparison No of Percenta respondents Excellent 5 Good 12 Satisfied 18 Not satisfied 15 total 50 Source : Questionnaire ge 10 24 36 30 100 Interpretation: The above table showing the comparison about different financial institutes to DHFL this survey gives the findings about different opinion about the comparison the DHFL with others has a 24% out of 50 peoples opinion had a good opinion and 10% had a excellent opinion.14 Comparison of DHFL service with others. and 36% of 50 Customers are satisfied opinion but remaining 30% respondents are not satisfied when comparing with other institution. No of respondents Axis Title 18 16 14 12 10 8 6 4 2 0 Excellent ATNCC SHIMOGA Good Page 80 Satisfied Not satisfied . 15 If not DHFL. for which institution is preferred for loan.Table 5. Financial Institution HDFC Banks Non institution Others Total financial No of Percentag respondents 10 20 12 e 20 40 24 8 50 Source : Questionnaire Interpretation: ATNCC SHIMOGA Page 81 16 100 . Of this survey the customers if not DHFL 20% out of 50 respondents prefer to go for take a loan from HDFC and 40% peoples have chosen the Banks and 24% Non financial institution and remaining 16% peoples are choose other type of institutions. Majority are interested in preferring banks for loan. ATNCC SHIMOGA Page 82 .No of respondents 16% HDFC 20% Banks 24% Non financial insti Others 40% This table shows that if not DHFL the customers prefer which institution to take a loan. this survey gives the findings ATNCC SHIMOGA Page 83 .Table 5.16.Opinion about DHFL with compared to other financial institutions. Opinions No of Percentag Excellent Good Satisfied Not respondents 6 14 18 12 e 12 28 36 24 satisfied Total 50 100 Source: Questionnaire Interpretation: No of respondents 24% Excellent 12% Good 28% Satisfied Not satisfied 36% The above table showing the comparison about different financial institutions to DHFL . ATNCC SHIMOGA Page 84 . 28% of customers have good opinion about DHFL and 36% of customers were satisfactory opinion about DHFL but remaining 24% of customers have not satisfied when compare with other financial institution.about different opinion 12%of respondents have excellent opinion . Also shows that DHFL is the main Housing Finance company in Shimoga.6 SUMMARY OF FINDINGS. SUGGESTIONS AND CONCLUSION Findings General objective of the survey Problems Suggestions Conclusion FINDINGS The survey revealed the following findings: This survey gives the full information about how company . Also the people feel well about customers service provided by DHFL ATNCC SHIMOGA Page 85 .CHAPTER. ATNCC SHIMOGA Page 86 .The DHFL company has the easy loan providing criteria to provide loan for customers.  To know the opinion of the customers about the functioning and working of the DHFL. The rate of interest of loan charged by DHFL is little bit high when compared to other institutions General objectives of the survey  To know the general opinion of the customers with regard to Housing loans and DHFL company.  To know whether the customer is satisfied with the service rendered by the DHFL. The repayment criteria. when compared to others.  To know the opinion of the customers about the general attitude of the firm towards the customers. repayment period and procedure is good.  The customers have not given the information regarding full utilisation of their House loan amount.  To know whether the service rendered by the firm improving in recent years. terms and conditions and procedure carried out by the DHFL. ATNCC SHIMOGA Page 87 .  Fear among the customers to freely express their views and opinion about DHFL.  Lack of awareness among the peoples about the functions. Limitations of the survey  Lack of prompt reply given by the customer's and biases replay given by the peoples. To know effectiveness of the service provided by the firm in comparison with the other banking and non banking financial institutions.  Some of the customers are not sharing their information regarding DHFL with their Friends and Relations.  Also the some of the customers are delaying the repayments of loan. ATNCC SHIMOGA Page 88 . compared to the other banks and institutions. Because the uneducated peoples are no proper understanding of the required information about DHFL.  The customers are delaying and do not like to give all required material information which requires company at the time of sanctioning loan. because the DHFL has not giving lot of advertisement through media's . so for that they require big office and big management structure.  Lack of Advertisement problems.  Business execution in rural areas of Shimoga district is quite difficult to Shimoga city.Problems  Some peoples in Shimoga are not heard about DHFL company. because of lack of information.  The DHFL companies rate of interest is marginally high.  DHFL branch office is small and it has business throughout Shimoga. but it is marginally high when compare to others and it also have a option of variable interest rate schemes.Suggestions  The DHFL branch offices main problem is higher rate of interest. so for that the company has to make a program of giving full and complete information about DHFL and their interest rate to their customers and convince the peoples to take loan.  For the purpose of business expansion the DHFL branch office make it change their office with big spaced office and take more offices to do their business effectively.  They have to give the advertisement through TV. Papers and Big News boards. But in my study the company has not charging a higher rate of interest. ATNCC SHIMOGA Page 89 .  They have to give some beneficiary schemes and subsidies to their customers t improve their customer services. which attracted the peoples to remove the lack of information to their company. as a Financial institution in the emerging housing finance sector has done all its efforts to market its services. DHFL has also acquired the standards of information age by creating company's website on the interest and is able to provide the information to its customers and share holders through the internet. ATNCC SHIMOGA Page 90 . Conclusion This study was conducted to know the marketing concepts of Dewan Housing Finance Corporation Ltd. DHFL has emerged has a second important company in the Housing Finance sector and has obtained the required credit rating from the rating institution such as CARE [credit analysis and revised limited] and DCR [Duff and helps credit rating India] for is fixed deposits programs. DHFL Shimoga branch has to appoint some qualified persons to expansion of their business and studying of peoples attitude and giving full information to customers and peoples. ATNCC SHIMOGA Page 91 . DHFL has largely untapped market like businessman and professional.The company has managed to increase its goodwill. thus DHFL should also concentrate on the professional class present in Shimoga city. DHFL is competing very much with Canara Bank sponsored Can-Fin-Home ltd. Dewan Housing Finance Corporation is definitely a friendly housing finance company to maintain and may be advised to same reputation. In Shimoga. DHFL in providing great service to the people who's dream to have its own peaceful place called home a lifetime achievement of any human being. DHFL should approach these classes of people and offer than to get finance from the institution. which must of the customers showing and high degree of loyalty towards the company. Most of the customers are very much satisfied with the operation and services of the company and they have continuously suggested their Friends and relations to approach DHFL for housing finance. DHFL has easy loan giving procedure. ATNCC SHIMOGA Page 92 . compare to other institutions.5% fees as administration charge it is very low compared to other institutions. They are taking only 1. ANNEXURES  Questionnaire  Bibliography ATNCC SHIMOGA Page 93 . Thanking You.QUESTIONNAIRE Dear Sir/Madam I am Nuthana final year BBM student of Acharya Tulasi National College of Commerce Shimoga. I have undertaken the project report on ‘A Case study on housing loan & fixed deposit schemes ‘with special reference to “Dewan housing finance corporation limited”. Hence kindly fill up my questionnaire & give valuable suggestions the data is given by you. Age group 18 to 25 ATNCC SHIMOGA Male ( : ( ) Page 94 ) Female ( ) . Yours faithfully : 1. Address : 3. Name 2.It will be used only for the academic purposes. Sex : 4. PUC ( ) c.25000 b. Rs 50000 & above ( ) 8. OCCUPATION ( ) d. SSLC ( ) b. Employee ( ) b. 40 and above ( 5. Below Rs. Education ) ) : a. PG & other : a.b. Do you know about DHFL? ATNCC SHIMOGA ( Page 95 ) ( ) . Govt. Rs 25000 to 35000 ( ) c. Rs 35000 to 50000 ( ) d.25 to 30 ( ) c. Degree 6. Others ( ) 7. 30 to 40 ( d. Private Employee ( ) c. Businessmen ( ) d. Annual Income : a. Housing loan deposit ( 11. Excellent ( ) ( ) ATNCC SHIMOGA Page 96 ) b. Yes ( 10. Are you aware of services provided by DHFL? a. Rs 2 lakh & ) What is opinion about Rate of interest charged by DHFL ? a. No ( What type of account do you have with DHFL? a. Yes ( ) b. No ( ) 9. ) b. ) b. Below Rs 50000 lakh ( ( above ( 12. Good .Rs 50000 to 1 ) c. No accounts ( ) d. Fixed ) c.Others How much loan borrowed from DHFL? a.a. ( ) b. Rs 1 lakh to 2 lakh ( ) d. Do you recommended about taking loan from DHFL. Good ( ) c. What is your opinion about the process involved to give loan from DHFL? a. Do you find any difficulty in getting loan from DHFL ? a. Not Satisfied ( ) 15. No ) 16. Good ( ) c. Not Satisfied ) 13. Satisfied ( ) d. Not Satisfied ( ) 14. Yes ( ( ) b. Excellent ( ) b. Satisfied ( ) d. Satisfied ( ( ) d. Excellent ( ) b.c. to your Friends and Relations ? ATNCC SHIMOGA Page 97 . Are you satisfied with the services provided by DHFL ? a. HDFC ( ( ) b.a. when compared with the other institutions a. What is your opinion about DHFL with compared to other financial institutions ? ATNCC SHIMOGA Page 98 . Services of the DHFL. which institution you would prefer to take loan ? a. Satisfied ( ) d. Not Satisfied ( ) 18. Excellent ( ) b. Yes ( ( ) b. Non financial institution ( ) 19. No ) 17.Banks ( ) d. If not DHFL. Others ) c. Good ( ) c. Not Satisfied ) 20. ATNCC SHIMOGA Page 99 . Good ) c. Satisfied ( ( ) d. Do you suggest any thing for the improvement of financial services or any other suggestions with regard to DHFL.a. Excellent ( ( ) b. ________________________________________ Date : Place : Shimoga Signature.  Annual Reports of DHFL Guidance of the company officers.htm  www. Magazines journals and Application forms of DHFL.com/loans/dewan.Indiapropertyshop.com  www.com/investor/corporate_profile/m_profile.htm  www.BIBLIOGRAPHY BOOKS  Law & Practice of Banking -B S Raman  Broachers. Electronic source  www. Pamphlets.dhfl.dhfl.dhfl.com/product/home_loan.html ATNCC SHIMOGA Page 100 .