44285869-DHFL-PRO

CONTENTS

1. INTRODUCTION 2. COMPANY PROFILE 3. PROCUCT PROFILE 4. BRANCH PROFILE 5. ANALYSIS AND INTERPRETATION 6. SUMMARY FINDINGS ANNEXURES Questionnaire Bibliography

Sir M.V Govt. Arts & Commerce, College

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CHAPTER -1 INTRODUCTION General Introduction Specific Introduction Scope of the study Objectives of the Study Methodology Used Limitations Chapter scheme 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- 4 PRODUCT PROFILE HOUSING LOAN SCHEMES Home Loan Home Extension Loan Home Improvement Loan Sampoorna Rakshak Free insurance cover NRI Care Taker Loans Plot Loans FIXED DEPOSIT SCHEMES Aashray Deposits Cumulative Non Cumulative Small Savings Schemes CHAPTER 5 BRANCH PROFILE History and Location Marketing of their products Working and efficiency


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Management Structure Loan procedure Eligibility Documents Repayment Criteria Area covered by DHFL in India CHAPTER 5 ANALYSIS AND INTERPRETATION Analysis Tables and Graphs Findings CHAPTER- 6 SUMMARY FINDINGS OF FINDINGS AND INTERPRETATION General objectives of the survey Problems Suggestions Conclusion ANNEXURES Questionnaire Bibliography "A Case study on Housing loan and Fixed Deposit Schemes", with special reference to "DEWAN HOUSING FINANCE CORPORATION LIMITED".


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CHAPTER -1 INTRODUCTION General Introduction Specific Introduction Scope of the study Objectives of the Study Methodology Used Limitations Chapter scheme


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INTRODUCTION General introduction. Housing is one of the basic human necessities. It is fundamental for the physical, psychological, social and economic well being of people. Shelter is one of the most basic needs of the people. 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, while the problem of providing housing is highly critical in the developing countries. Most of the advanced countries also face this problem in varying degrees and dimensions. Almost all governments, it may be developed, developing or underdeveloped country their object is every citizen of their country should have a one decent house in a suitable living environment. Housing as a form of reproducible wealth and is a asset of the people and their country. Construction of house in India has been one of the most important problem, as a result of high growth of population. It has very difficult to fill the gap between supply and demand of houses. Housing is a important factor for development in both economic and welfare terms. consumption but also a productive investment. So for that, they need financial supports for construction of their own house. It is not only a good


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Specific Introduction Solving the housing problems in India, the Government and Private financial institutions are started their business to give financial assistances to people. "The National Housing Bank" has started its business to give

assistance and provide financial support to their people. The "DEWAN HOUSING FINANCE CORPORATION LTD", popularly known has DHFL has commenced its business to provide financial assistant and support to their customers. The DHFL is providing loan for all the people. This companys main products are Home loan, Home Extension loan, Home Improvement loan, leased Rental finance, Mortgage loan etc., The DHFL's Shimoga branch is providing loan for all salaried persons, self employed persons, business people, agriculturists, fishermen's and all types of people who want loan to build their own house in all over Shimoga. DHFL also has the special schemes facility known as, "Swarna Jayanthi Rural Housing Finance Scheme" to mark the golden jubilee of India's independence. The scheme seeks to provide improved to access housing loans to borrowers of constraints/ acquisitions/ up gradation of housing rural areas of the country.


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Scope of the study This company is concentrating to give loan to all the peoples of Shimoga district. They are concentrating to give loan to salaried persons, business people and other type of people. self-employed persons, agriculturists

Objectives Of The Study To study the marketing efforts of DHFL in Shimoga city. To analyze and interpret the survey findings. To compare the performance of DHFL in Shimoga branch with other Housing financial institutions in Shimoga. To know the day-to-day operations of DHFL. To know the consumer opinion regarding DHFL. To ascertain the interest level on various housing loans of DHFL Methodology Used a) Primary Sources 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.


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b) Secondary Sources The secondary source being through published material, such as annual reports of DHFL company, Internet, study materials available in finance companies.

Limitations Non availability of data has affected the project report. Several information were not disclosed by the concerned as they felt it was necessary to keep confidential. Hence details of some more critical points could not be disclosed here. The workers of the company have not give some related information because of shifting the company from one place to another place. Lack of co-operation from some respondents. Shortage of time & finance. Study is only confined to only Shimoga branch. Only 50 respondents could be contacted.

Chapter SchemeChapter-1 : Introduction:- Deals with Research Design Chapter-2 : Company profile:- Deals with profile of the company Portrait of the company Deals with branches, regional office and capital structure Chapter 3: Product profile:- deals with schemes offered by DHFL Chapter 4: Branch Profile Deals with the profile of Shimoga branch, Garden Area, Shimoga


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Chapter 5: Survey Analysis and Interpretation:- Deals with the analysis of survey conducted Chapter 6: Summary findings, suggestions and conclusion Deals the summary of survey conducted followed by suggestions and conclusion.


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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


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COMPANY PROFILEIntroduction 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 amounting to over 53 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 isnt 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.


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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.

Understand our customers inner needs and speak their language.

Go to any length to make sure our customers dont feel intimidated. Continuously configure our credit policy to make sure the maximum number of people can be eligible for loans. 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. Values Treat all our customers with dignity and respect. Be totally transparent in all our dealings. Strive to be a learning organization. Dedicated to team excellence and employee happiness Be single mindedly committed to the betterment of our society.


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Management Profile Leading a company like DHFL needs a very singular perspective. Balancing the unrelenting demands of corporate performance and the special needs of the target group the company caters to requires continuous innovation. Mr. Kapil Wadhawan Vice Chairman Managing Director, DHFL Mr. Kapil Wadhawan, Vice Chairman Managing Director,

Dewan Housing Finance Corporation Ltd, took over the reins of this company in October 2000. Before taking over as the Managing Director, he was the Executive Director on the board of DHFL. Mr. Kapil Wadhawan is an MBA (Finance) from Edith Cowan University at Perth, Australia. Mr. Wadhawan has taken many innovative steps to build the organization into a world class financial services company. 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. Mr. Wadhawan is known for his dynamic leadership qualities and his ability to take quick decisions. He contributes immensely to philanthropic activities and has done a lot for the economically weaker sections of society. Mr. Anil Sachidanad CEO DHFL


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Mr. Anil Sachidanand is hailed as the mortgage banking financial expert and has been active in the residential mortgage business for more than two decades. As the CEO of Dewan Housing Finance, one of Indias largest housing finance companies, 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, increase business volumes and make the company a dominant player in its sector. Mr. Anil Sachidanand is a professional with a proven track record of setting up processes and creating & managing effective teams in diverse environments. He joined DHFL years back as a Management Trainee and progressed to the role of National Manager in 10 years. In this first innings, 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. Anil inculcated diverse experiences in companies like IDBI Bank where he was the Head of Retail Mortgage & HDFC Bank as the Business Head Mortgages. Sixteen years later he got a taste of the global scenario through the US based company, Adventity in Houston, Texas for four years. Here, 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. Anil has amassed vast experiences over the last two decades in building infrastructure for achieving the business goals by establishing branch network,


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distribution franchises and other marketing channels. He is a veteran team builder with an innate ability to recruit, train and manage effective teams on a national scale. Mr. Sachidanand believes in delivering consistent growth record and delivery of bottom line performance. Mr. Rajeev Sathe COO, DHFL Mr. Rajeev Sathe is a senior banker with about three decades of diverse managerial experience in banking operations with State Bank of India . He is an engineer and post graduate in bank management (NIBM), with a dissertation on applying IT for control of priority sector advances. In India he has handled a wide gamut of credit in rural and semi urban areas, retail banking, SSI and large corporates. Internationally he has managed trade finance, operations and IT in USA. 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 productivity improvements in the manufacturing industry.


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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. Name Mr. Rakesh Kumar Wadhawan Mr. Kapil Wadhawan Mr. Anil Sachidanand Designation Chairman Vice Chairman & Managing Director Chief Executive Officer

Board of Directors Shri Rakesh Kumar Wadhawan Shri Kapil Wadhawan Shri Dheeraj Wadhawan Shri Sarang Wadhawan Shri R. P. Khosla Shri R S Hugar Shri G. P. Kohli Shri Ashok Kumar Gupta Mr. Anthony Hambro Shri Ajay Vazirani Shri V. K. Chopra

Chairman Vice Chairman & Managing Director Director Director Director Director Director Director Nominee Director Director Director


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Awards To any business, the biggest award is always the satisfaction of the customer. But every now and again its nice to be recognized by our peers. 2008 2007 2007 2007 2007 2004 2004 2002 2002 2002 1995 1992 1991 Silver CIO Award'08 by - CIOL Dataquest Enterprise Connect Awards Excellence in Design among HFI's at Property Expo October'07 by (Maharashtra Chamber of Housing Industry) Excellence in Design among HFI's at Property Expo April'07 by (Maharashtra Chamber of Housing Industry) SRS Real Estate & Infrastructure Award for National Excellence (Real Estate Watch Monthly) Award of Appreciation (Maharashtra Chamber Of Housing Industry) Best Customer Service HFI's Property (5th Housing And Real Estate Exhibition) Project Crayons corporate Social responsibility Award Housing Company of the Year Young Achiever Awards (Accommodation Times) Rashra Nirman Ratna Awards Udyog excellence Awards 1995 Housing company of the Year Udyog Gaurav Award

PORTRAIT OF COMPANY


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Head /Corporate Office Dheeraj Arma, 6th floor, Anant Kanekar Marg, Station Road, Bandra [E] Mumbai - 400051 Regd. Office Warden House, 2nd floor, Sir P M Road, Fort, Mumbai - 400001 Branch offices of DHFL In South Zone Branch offices Bangalore Belgaum Service centre Kolar, Tumkur Bagalkot, Gokak, Mudhol. Bijapur, Chikkodi. Davangere Gulbarga Hubli Mangalore My sore Shimoga Chitradurga, Harapanahalli Raichur, Bidar, Bellary, Haveri. Karwar Mandya Hassan


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Chennai Cochin Kanpur Madurai Vijay Wada Vizag

Vellore Allepey, Idukki Kozhikode, kasargode Theni, Dindigul Guntur, Eluru Rajahundry, Narsipatnam.

In West Zone Branches An kola Service Centres Jalgaon, Parbhani, Amaravathi Baroda Jaipur Jodhpur Nagpur Surat Navy Mumbai Ahmedabad Anand, Halol Dansa, Alwar Pali Bhandara, Yavatmal Navsari Pen Kalol

In North Zone Branches Bhopal Service Centers Itargi, Sager


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Chandigarh Indore Kolkata New Delhi Raipur CAPITAL STRUCTURE

Patiala, Jakandhar Khandwa, Khargone. Durgapur, Barasat Gurgaon, Ghazi bad Rajanandgon

DHFL has been prudent in its financial planning by regular endeavor to raise low cost finds and adequate leverage reflected by comfortable debt, equity ratio. The capital adequately ratio of DHFL as at March 31-2008 was 20.12% against the minimum stipulated requirements of 12%. SHARE HOLDERS PATTERN Category 1. Promoters 2. Body Corporate 3. UTI 4. Mutual Funds 5. Individuals Total %age of Share Holders 54.50 18.19 14.83 1.09 11.81 100.00


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CHAPTER- 4 PRODUCT PROFILE HOUSING LOAN SCHEMES Home Loan Home Extension Loan Home Improvement Loan Sampoorna Rakshak Free insurance cover NRI Care Taker Loans Plot Loans FIXED DEPOSIT SCHEMES Aashray Deposits Cumulative Non Cumulative Small Savings Schemes


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PRODUCT PROFILE 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.,

PRODUCTS DHFL Home Loans DHFL Home Loans are offered to Individuals, Co-operative Societies, Corporate bodies and Associations of Persons. The home loan seeker can avail loans upto Rs. 100,00,000/- but not exceeding 85% of the cost of the property. The actual loan amount is determined after taking into account factors like repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, co-applicant's income, assets, liabilities, saving habits etc. The tenure of the loan ranges from 1 to 20 years. The term however does not extend


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beyond the retirement age or 60 years whichever is earlier (65 years for self employed individuals). The size of the EMI depends on the quantum of loan, 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 co-applicant. Prepayment of the loan, ahead of the contracted schedule in part or full, is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time. Range Minimum Maximum Amount (Rs) 1,00,000 1,00,00,000 Tenure 5-10 years 5-20 years Rate interest 10.50 10.50 of

Samarth. Home loan for the self employed. DHFL has pioneered a home loan for self employed people. As a category they have been ignored by the housing finance community. There are two reasons for this reluctance to do business with them. The first reason is that they have variable monthly income, even the prospects of some months without income. The second is that even if they have the money, they dont have the necessary documentation that proves them credit worthy. DHFL has pioneered a process which facilitates the assessment of income through an independent source other than the income tax authority. Eligibility criteria The self employed person should be more than 18 years and less than 65 years of age. The applicant is self employed /trader or engaged in service industry.


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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. The applicant should be able to contribute at least 40% of the total sum required. Sales Tax Registration or any other registration of business required by statutory authorities / local laws is mandatory. The business premises should be owned / inherited. Business premises should not be on encroachment land without title to property or deviated in construction from approved plans. DHFL Home Extension Loans Home Extension Loans are offered to individuals who wish to extend the existing accommodation, say by adding a bedroom, enclosing open balcony, building an extra room on the terrace etc. The customers can avail these loans upto Rs. 100,00,000-/ but not exceeding 85% of the cost of the extension. The actual loan amount is determined after taking into account factors like repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, co-applicant's income, assets, liabilities, saving habits etc. The tenure of the loan ranges from 1 to 20 years. The term, however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for the self employed individuals). The size of the EMI depends on the quantum of loan, interest rate applicable and tenure of loan. 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 co-applicant.


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Prepayment of the loan, ahead of the contracted schedule in part or full, is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time. DHFL Home Improvement Loans Home Improvement Loans are offered to Individuals for the purpose of renovation and repainting their homes. Customers can avail these loans upto Rs.100, 00,000-/ but all loans availed not exceeding 85% of the total documented cost of the property. The actual loan amount is determined after taking into account factors like repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, co-applicant's income, assets, liabilities, saving habits etc. The tenure of the loan ranges from 1 to 10 years. The term however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for the self employed individuals). The size of the EMI depends on the quantum of loan, interest rate applicable and tenure of loan. 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 co-applicant. Prepayment of the loan, ahead of the contracted schedule in part or full, is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time. Sampoorna Rakshak - 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. This plan


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provides insurance cover for damage caused to property due to natural disasters/calamities, personal accident and loss of job. The plan covers your home for losses due to Fire, Lightning, Earthquake, Impact damage, Explosion & Implosion, Aircraft Damage, Bush Fire, Riot, strike, Malicious damage, Missile testing, Subsidence and/or overflowing of Water Tanks, Apparatus and Pipes. DHFL offers Sampoorna Rakshak to its customer FREE of cost. and landslide/rockslide, Leakage from Automatic Sprinkler Installations, Bursting

NRI Care Taker Loans NRI Home Loans are offered to Non Resident Indians (NRIs) for residential properties in India. These loans can be availed for purchase, construction, improvement & extension also. The NRI's can avail these loans upto Rs. 100, 00,000-/ but not exceeding the 85% of the cost of property / estimate (for improvement / extension). The actual loan amount is determined after taking into account factors like repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, co-applicant's income, assets, liabilities, saving habits etc. The tenure of the loan ranges from 1 to 15 years. The term however does not extend beyond the retirement age or 60 years whichever is earlier. The size of EMI depends on the quantum of loan, interest rate applicable and tenure of loan.


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Prepayment of the loan, ahead of the contracted schedule in part or full, is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time. DHFL Plot Loans DHFL Plot Loans can be availed by individuals, whether salaried or self employed, to purchase non - agricultural land situated within Municipal / Local Development Authority limits. The loan seekers can avail these loans upto Rs. 10,00,000/- but not exceeding 85% of the cost of the plot. The tenure of the loan ranges from 1 to 20 years. The term however does not extend beyond the retirement age or 60 years whichever is earlier ( 65 years for self employed individuals). Prepayment of the loan, ahead of the contracted schedule in part or full, is permitted subject to payment of nominal fees / charges as stipulated by DHFL from time to time.


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Silver Jubilee Fixed Deposit Scheme Senior Citizens Annualized Yield) 11.19% 11.30% 11.41% 11.52%

Period in Days 399 days 599 days 899 days 1099 days

ROI p.a. 10.05% 10.60% 10.70% 10.80%

Annualized Yield 10.92% 11.03% 11.14% 11.25%

Senior Citizens (ROI p.a.) 10.75% 10.85% 10.95% 11.05%

Minimum Deposit Rs.5,000/-, additional deposits in multiple of Rs. 1,000/thereafter 0.25% extra for Senior Citizens

Additional Conditions: In case of a premature payment of the DHFL Silver Jubilee Fixed Deposit, the same will be treated as an ordinary Fixed Deposit & the premature payment rules will be applicable accordingly.


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Aashray Deposits 0.25% extra for Senior Citizens, Widows, Armed Forces Personnel, existing DHFL Customers & Shareholders Cumulative Scheme: (Rates effective from 1st November 2008) CUMULATIVE SCHEME (I) Rate of Interest Half Period in yearly (p.a) Months compounding 12 10.05% 24 10.10% 36 10.25% 48 10.00% 60 10.00% 72 10.00% 84 10.00% Minium deposit Rs.2000/-

Certification Scheme for Rs. 10000/Desposits (Rupees) 9,066 8,212 7,410 6,768 6,139 5,568 5,051

Yield (Half Yearly Compounding) 10.30% 10.62% 10.78% 10.25% 10.25% 10.25% 10.25%

Additional deposit in multiple of Rs.1000/-


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Non - Cumulative Scheme: (Rates effective from 1st November 2008)NON-CUMULATIVE SCHEME (II) Period in Rate of Interest Months Rate of Interest Rate of Interest (Payable Half Rate of Interest (Payable Yearly) 10.30% 10.30% 10.40% 10.50% 10.25% 10.25%

Yrl.) 12 9.80% 9.90% 10.05% 18 9.80% 9.90% 10.05% 24 9.90% 10.00% 10.10% 36 10.00% 10.10% 10.25% 37-59 9.80% 10.00% 10.00% 60-84 9.80% 10.00% 10.00% Minium deposit for Monthly Interest Plan is Rs.20000/Minimum desposit for others Rs.10,000/Amount of Maturity Value will be in multiple of Rs.1000/

(Payable Monthly) (Payable Quartely)

Small Savings Scheme: (Rates effective from 1st November 2008)

SMALL SAVINGS SCHEME (III) Monthly Deposit Rs Period of Months Rate of Interest% 500 Upto 36 Months 10.25% 500 Above 36 upto to 84 Months 10.00% Recurring Deposit amount per month can be flexible subject to a minimum of Rs.500/- and in multiples of Rs.100/-

CHAPTER 5


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BRANCH PROFILE History and Location Marketing of their products Working and efficiency Management Structure Loan procedure Eligibility Documents Repayment Criteria Area covered by DHFL in India


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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, with an aim to offer financial assistance to home acquires to actualise their dreams owing a house. At present it is working with eight workers in Shimoga. i.e., Manager, Accountant, Appraisal officer, Technical officer, Recovery officer, Service Centre in charger, Business executive and Administrative assistant with proper computerised accounting network. This company has started his business in Shimoga with the aim of to give a financial assistance to all required people in Shimoga, mainly who want to build their own house and this company has encouraging people to have their own house with giving easy financ,//vn

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.Marketing of their product


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The DHFL has a three main centers in Shimoga to market their product. First, Shimoga branch office, Hassan service center, Chikkamagalur and Shikaripura camp. In marketing process the DHFL first survey the people who want loan. They conduct service camp in that place and giving the full information of their product and company and afterwards they give loan the people. They are conducting the service camps mainly in Chikkamagalur, Kadur, and Shikaripura Taluk. On that service camp they give the full information regarding their company, their product and their all procedures. The DHFL's technical and appraisal officers are doing the work to improve their business and they providing the full material information regarding their loan procedure and details about their company. The DHFL has its own Business Executives to execute and improve their business. The DHFL in Shimoga branch office is giving the loan all over Shimoga district which include Rural and Urban areas of Shimoga district and they are financed more than 2000 families in Shimoga district. Working and efficiency Branch office of DHFL in Shimoga is well maintained by the able manager Mr.Rajesh and he is supported by an accountant and also his office workers. It is a computerized office and equipped with all modern type of office equipments Location.

DHFL Mahaveera plaza, 2nd floor Near sanman hotel 3rd cross,


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Garden area ,Nehru road, Shimoga - 577201


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MANAGEMENT STRUCTURE In Shimoga BranchBranch

Branch Manager

Technical officer

Appraisal officer

Accountants Officer

Recovering Officer

Service center

Incharger

Marketing / Business ExecutiveLonan Procedure

Business Executive

The appraisal officer attends to the queries of a prospective borrower various details examples: eligibility details are meetings. The borrower pays the processing fees, which is 1.5% of their loan amount the fees are non refundable discussed during the


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The data for the personal interview is fixed up as per the annual convenience of the office and the party. The appraisal officer conducts the interview. The appraisal officer study the file and discuss the case with the branch manager. 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 authority concerned sanctions the loans proposal. The borrower submits all the leagal documents to the leagal officer. The loan agreement and other documents are signed. The leagal officer then prepare a legal report after studying the property documents in details . 9.The technical officer visits the property & submits the technical reports. The amount to be disbursed is recommended by technical officer as per the stage of completion of construction. 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, which is sent to the corporate office for the signature of the authorized signatories. The


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disbursement memo is attached with important documents like guarantors salary slip and form etc. The signed cheque is then received and after checking once again whether all the requirements are comiled with , the same is handed over to the borrower. The cheque for the amount disbursed is collected.


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Eligibility The people who want to take a loan from the DHFL, they have to fulfill these following requirements. They are as follows; Educational qualification. Repayment capacity and age . Stability and continuity of income. Number of dependents and their income. Co-applicants income. Guarantee persons or surety persons income Assets, Liabilities and savings habits proof etc., Documents Depending upon the customers target and loan borrowing capacity they have to submit the following documents to DHFL. 1. For Salaried Persons Salary slip or certificate with details of deductions. Employment certificate as per our format. Latest copy of form No 16 Proof of additional income in any. 2. For Employed Businessman or Professionals;


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Brief profile of Business or Professionals. Copy of last 3 years Income Tax Returns duly certified by a chartered account. Copy of last 3 years Balance Sheet and Profit and loss duly certified by a CA. Copy of computation Income statement. TDS certificate copies. Copy of proof by business premises or shop ownership. 3. Common Documents Copy of bank pass book of statement for last 6 months. Copy of qualification certificate. Copy of Ration card. Proof of Residence. 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. DHFL collects amounts by making composite various places


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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. Area Covered by DHFL in Shimoga Branch DHFL has concentrated its Marketing activities to words the all over the Shimoga, Hassan and Chikkamagalur. The places covered are as follows: Shimoga, Hosanagar, Aynur, Shikaripura, Hollur, Honnalli, Holehonnur, Bhadravathi, Thirthahalli, Tarikere, Kadur and Birur, Chikkamagalur and Hassan.


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CHAPTER 5 ANALYSIS AND INTERPRETATION

Analysis Tables and Graphs Findings


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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. The Analysis and survey was conducted by getting opinion of the DHFL customers and other peoples. DHFL has providing the house loan facility and fixed deposit facility with regard, 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. The following 10 graphs and tables are showing the DHFL's performance and their business and their position in housing finance sector in Shimoga city.


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Table 1. Age group Age group 18-25 years 25-30 years 30-40 years 40 and above Total No. of respondents Percentage 06 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, 22% of the customer lies between the age group of 25 to 30. 34% of of the customer lies in between the age group of 30 to 40 age. And 32% of the customer are comes in between the age group of 40& above.

40 and above 32%

1 8-25 years 1 2% 25-30 years 22%

30-40 years 34%


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Table 2. Educational qualification of customers. Qualification SSLC PUC DEGREE PG and Others Total Interpretation: Results of 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 customers have passed P.U.C & P.G respectively. But the Degree completed customers are in maximum number because they are 50% of the total, they are dominating the others and S.S.L.C passed customers are take 2nd place, they are 18% . P.U.C and P.G& others are take last place they are 16%. No. of respondents Percentage 9 18 8 16 25 50 8 16 50 100

Sources : questionnaire

25 25

20

1 5

9 1 0

8

8

5

0 SSLC PUC DEGREE PG and Others


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Table 3. Occupation of customers No . of respondents Govt. employees 12 Private employees 16 Business peoples 10 Others 12 Total 50 Sources : Questionnaire: 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. 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. 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. Occupation Percentage 24 32 20 24 100

1 6 1 6 1 4 1 2 1 2 1 0 1 0 8 6 4 2 0 Govt. employees P rivate employees Business peoples Others 1 2


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Table 4. Annual income the customers Income per annum Below Rs.25000 Rs.25000 to 35000 Rs.35000 to 50000 Rs.50000 and above Total No. of respondents 9 10 14 17 50 Sources of Questionnaire Interpretation: From the above income per annum table, it is clear that 18% of respondents having income below 25000,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 , 34% of the customers having more than Rs 50000 income. Above table, clears that the customers of DHFL are from all class of people group, high, middle and low group. Only the high and middle income groups of persons are getting the service rendered by DHFL. Percentage 18 20 28 34 100

Rs.50000 and above 34%

Below Rs.25000 18%

Rs.25000 to 35000 20% Rs.35000 to 50000 28%


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Table 5. Knowledge of DHFL Answer Yes No Total No. of respondents 42 08 50 Percentage 84 16 100

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 dont know about DHFL. So the majority of the customers were know about DHFL.

No 16%

Yes 84%


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Table 6. Awareness of services provided by DHFL Awareness Yes No Total No. of Respondents 40 10 50 Sources : Questionnaire The above table show that out of 50 customers, 80% of customers are aware about services provided by DHFL but remaining 20% of respondents are not aware about what type of services are provided by DHFL. Percentage 80 20 100

No 20%

Yes 80%


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Table 7.Type of loan taken from DHFL Type of loan Fixed deposit Housing loan No accounts Total No Respondents 15 28 7 50 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. 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. of Percentage 30 56 14 100

30

28

25

20 15 15

10

7

5

0 Fixed deposit Housing loan No accounts


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Table 8.Amount of loan borrowed from the DHFL? Loan amount(RS) Below Rs 50,000 Rs 50,000 to 1,00,000 Rs 100000 to 200000 Rs 200000 &above No loan taken Total No of respondents 10 5 17 12 7 50 Source : Questionnaire Interpretation: From the above loan borrowed from DHFL table it is clear that 20% of customers have taken loan below Rs 50000,10% of customers have taken loan of Rs 50000 to 1 lakh, 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 havent taken loan from DHFL.1 8 1 6 1 4 1 2 1 0 8 6 4 2 0 Below Rs 50,000 Rs 50,000 to 1 ,00,000 Rs 1 00000 to 200000 Rs 200000 &above No loan taken 1 0 1 2 1 7

Percentage 20 10 34 24 14 100

7 5


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Table 9. Customer opinion about rate of interest Opinion No of Percentage 6 22 22 50 100

Respondents Excellent 3 Good 11 Satisfied 11 Not satisfied 25 Total 50 Sources :Questionnaire Interpretation:

The above table shows that the opinion of the different respondents about the rate of interest charged on the loan taken by customers. 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 .But remaining50% out of 50 customers they are not satisfied with the rate of interest charged by DHFL. So 50% of respondents are not satisfied about rate of interest charged by DHFL.25 25

20

1 5 1 1 1 0 1 1

5

3

0 Excellent Good Satisfied Not satisfied


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Table 10. Opinion about customer services in DHFL. Customer service Excellent Good Satisfied Not satisfied Total No of respondents 9 10 14 17 50 Percentage 14 18 2850 18 100

Source : Questionnaire Interpretation: The above table showing the customers opinion about 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. 14% of customers having Excellent and 18% of customers having both Good and Not Satisfied opinion about customer service and but remaining 50% DHFL to their customers.1 8 1 6 1 4 1 2 1 0 8 6 4 2 0 Excellent Good Satisfied Not satisfied 9 1 7

of

customers having a satisfactory opinion about customer service provided by

1 4

1 0


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Table 11.Opinion about the process involved to give loan from DHFL. Opinions Excellent Good Satisfied Not satisfied Total No of Respondents 6 10 25 9 50 Source : Questionnaire Interpretation: The above table showing the customers opinion about the process involved to give loan from DHFL. This table shows that the satisfactory opinion about process involved to give loan from DHFL because 50% of respondents have satisfactory opinion. 12% of customers have excellent opinion. 20% of customers have good opinion but 18% of respondents have not satisfied about the process involved to give loan from DHFL Percentage 12 20 50 18 100

Not satisfied 18%

Excellent 12% Good 20%

Satisfied 50%


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Table 12. Difficulty in getting loan from DHFL Difficulties Yes No Total Interpretation: 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 loan from DHFL. It shows that consumers face reltively less difficulties in getting loan from DHFL. No. of respondents 20 30 50 Source: Questionnaire Percentage 40 60 100

30 No

20 Yes

0

5

1 0

1 5

20

25

30


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] Table 13. Recommendations to friends and relatives Recommendation Yes No Total Interpretation: The above table showing that the DHFL customers recommendation to their friends and relations to take loan from DHFL to construct their house. Out of 50 respondents opinion 70% people have recommended their friends and relations to take loan from DHFL, but remaining 30% of peoples are not recommended any peoples because of different reasons. No of Percentage 70 30 100

respondents 35 15 50 Source: Questionnaire

No 30%

Yes 70%


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Table 14. Comparison of DHFL service with others. Comparison Excellent Good Satisfied Not satisfied total 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, and 36% of 50 Customers are satisfied opinion but remaining 30% respondents are not satisfied when comparing with other institution.1 8 1 8 1 6 1 4 1 2 1 0 8 6 4 2 0 Excellent Good Satisfied Not satisfied 5 1 2 1 5

No of respondents Percentage 5 10 12 24 18 36 15 30 50 100 Source : Questionnaire


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Table 15. If not DHFL, for which institution is preferred for loan. Financial Institution No of Percentage 20 40 24 16 100

respondents HDFC 10 Banks 20 Non financial institution 12 Others 8 Total 50 Source : Questionnaire Interpretation:

This table shows that if not DHFL the customers prefer which institution to take a loan. 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.

Others 16%

HDFC 20%

Non financial institution 24% Banks 40%


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Table 16.Opinion about DHFL with compared to other financial institutions. Opinions No of Percentage 12 28 36 24 100

respondents Excellent 6 Good 14 Satisfied 18 Not satisfied 12 Total 50 Source: Questionnaire Interpretation:

The above table showing the comparison about different financial institutions to DHFL ,this survey gives the findings about different opinion 12%of respondents have excellent opinion , 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.Not satisfied 24% Excellent 1 2%

Good 28%

Satisfied 36%


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FINDINGS The survey revealed the following findings: This survey gives the full information about how company . Also shows that DHFL is the main Housing Finance company in Shimoga. Also the people feel well about customers service provided by DHFL The DHFL company has the easy loan providing criteria to provide loan for customers. The repayment criteria, repayment period and procedure is good, when compared to others. The rate of interest of loan charged by DHFL is little bit high when compared to other institutions


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CHAPTER- 6 SUMMARY FINDINGS OF FINDINGS AND INTERPRETATION General objectives of the survey Problems Suggestions Conclusion


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SUMMARY OF FINDINGS The depth and complete study of the customer attitude and their behavior towards the "Housing Loans and Fixed deposit schemes" gives the full and detailed information about DHFL company. For the purpose of conducting the survey, I have prepared questionnaire and the same copy has submitted to customers and people to take their opinion about in our product. I have adopted the test method survey to collect information. I have surveyed nearly 50 customers and peoples to take opinion. The survey has been conducted of different aspects they are; Education, Occupation, Annual income and different age groups. General objectives of the survey To know the general opinion of the customers with regard to Housing loans and DHFL company. To know the opinion of the customers about the functioning and working of the DHFL. To know whether the customer is satisfied with the service rendered by the DHFL. To know the opinion of the customers about the general attitude of the firm towards the customers.


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To know effectiveness of the service provided by the firm in comparison with the other banking and non banking financial institutions. To know whether the service rendered by the firm improving in recent years.

Limitations of the survey Lack of prompt reply given by the customer's and biases replay given by the peoples. Fear among the customers to freely express their views and opinion about DHFL. Lack of awareness among the peoples about the functions, terms and conditions and procedure carried out by the DHFL. The customers have not given the information regarding full utilisation of their House loan amount.

Problems Some peoples in Shimoga are not heard about DHFL company, because of lack of information. Lack of Advertisement problems, because the DHFL has not giving lot of advertisement through media's .


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The DHFL companies rate of interest is marginally high, compared to the other banks and institutions. Business execution in rural areas of Shimoga district is quite difficult to Shimoga city. Because the uneducated peoples are no proper understanding of the required information about DHFL. DHFL branch office is small and it has business throughout Shimoga, so for that they require big office and big management structure. Some of the customers are not sharing their information regarding DHFL with their Friends and Relations. The customers are delaying and do not like to give all required material information which requires company at the time of sanctioning loan. Also the some of the customers are delaying the repayments of loan.

Suggestions The DHFL branch offices main problem is higher rate of interest, but it is marginally high when compare to others and it also have a option of variable interest rate schemes. But in my study the company has not charging a 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.


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They have to give the advertisement through TV, Papers and Big News boards, which attracted the peoples to remove the lack of information to their company. They have to give some beneficiary schemes and subsidies to their customers t improve their customer services. 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. 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.

Conclusion This study was conducted to know the marketing concepts of Dewan Housing Finance Corporation Ltd, 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. DHFL has emerged has a second important company in the Housing Finance sector and has obtained the required credit rating from the rating


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institution such as CARE [credit analysis and revised limited] and DCR [Duff and helps credit rating India] for is fixed deposits programs. The company has managed to increase its goodwill, 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 largely untapped market like businessman and professional. DHFL should approach these classes of people and offer than to get finance from the institution. In Shimoga, DHFL is competing very much with Canara Bank sponsored Can-Fin-Home ltd, thus DHFL should also concentrate on the professional class present in Shimoga city. 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. Dewan Housing Finance Corporation is definitely a friendly housing finance company to maintain and may be advised to same reputation.

DHFL has easy loan giving procedure, compare to other institutions. They are taking only 1.5% fees as administration charge it is very low compared to other institutions.


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ANNEXURES Questionnaire Bibliography


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QUESTIONNAIRE Dear Sir/Madam I am a final year BBM student of Sir M.V Govt. Arts and Commerce College, Bhadravathi which is affiliated to Kuvempu University. I have undertaken the project report on "A Case study on Housing loan and Fixed Deposit Schemes", with special reference to "DEWAN HOUSING FINANCE CORPORATION LIMITED". Hence kindly fill up my questionnaire and give valuable suggestions the data is given by you. It will be used only for the academic purposes. Thanking You, Yours truly PEETER JASWA K.P 1. Name 2. Address 3. Sex 4. Age group 18 to 25 b.25 to 30 c. 30 to 40 : ( ( ( ) ) ) : : : Male ( ) Female ( )


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d. 40 and above 5. Education :

(

)

a. SSLC c. Degree 6. OCCUPATION :

( ) ( )

b. PUC d. PG & other ( )

(

)

a. Govt. Employee ( b. Private Employee ( c. Businessmen d. Others 7. Annual Income : a. Below Rs.25000 ( ( (

) ) ) )

) ) ) )

b. Rs 25000 to 35000 ( c. Rs 35000 to 50000 ( d. Rs 50000 & above (

8. Do you know about DHFL? a. Yes ( ) b. No ( )

9. Are you aware of services provided by DHFL? a. Yes ( ) b. No ( )

10. What type of account do you have with DHFL? a. Housing loan ( ) b. Fixed deposit ( )


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c. No accounts

(

)

d.Others

11. How much loan borrowed from DHFL? a. Below Rs 50000 c. Rs 1 lakh to 2 lakh ( ( ) ) b.Rs 50000 to 1 lakh ( ) d. Rs 2 lakh & above ( )

12. What is opinion about Rate of interest charged by DHFL ? a. Excellent c. Satisfied ( ( ) ) b. Good d. Not Satisfied ( ( ) )

13. Are you satisfied with the services provided by DHFL ? a. Excellent c. Satisfied ( ) ( ) b. Good d. Not Satisfied ( ) ( )

14. What is your opinion about the process involved to give loan from DHFL? a. Excellent c. Satisfied ( ) ( ) b. Good d. Not Satisfied ( ) ( )

15. Do you find any difficulty in getting loan from DHFL ? a. Yes ( ) b. No ( )

16. Do you recommended about taking loan from DHFL, to your Friends and Relations ? a. Yes ( ) b. No ( )


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17. Services of the DHFL, when compared with the other institutions a. Excellent c. Satisfied ( ) ( ) b. Good d. Not Satisfied ( ) ( )

18. If not DHFL, which institution you would prefer to take loan ? a. HDFC ( ) ) b.Banks d. Others ( ) ( )

c. Non financial institution (

19. What is your opinion about DHFL with compared to other financial institutions ? a. Excellent c. Satisfied ( ( ) ) b. Good d. Not Satisfied ( ) ( )

20. Do you suggest any thing for the improvement of financial services or any other suggestions with regard to DHFL. ________________________________________

Date Place

: : Shimoga Signature.


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BIBLIOGRAPHY

BOOKS Law & Practice of Banking -B S Raman Application forms of

Broachers, Pamphlets, Magazines journals and DHFL.

Annual Reports of DHFL Guidance of the company officers.

Internet www.dhfl.com www.Indiapropertyshop.com/loans/dewan.htm www.dhfl.com/investor/corporate_profile/m_profile.htm www.dhfl.com/product/home_loan.html


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