A

SYNOPSIS REPORT

ON

A STUDY ON HOME LOANS

AT
ICICI BANK LTD
Submitted
By
GANJI PRAVEEN
H.T.NO: 1304-20-672-122
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

(Affiliated to Osmania University)

2020-2022
 AURORA POST GRADUATE COLLEGE

PEERZADIGUDA

DEPARTMENT OF MANAGEMENT

SYNOPSIS

Title of the Project : A STUDY ON HOME LOANS

Student Name : GANJI PRAVEEN

Hall Ticket Number : 1303-20-672-035

Signature of the Student :

Signature of the Guide :

S. No. CHAPTER Page No

1 INTRODUCTION

2 NEED FOR THE STUDY

3 OBJECTIVES OF THE STUDY

4 RESEARCH METHODOLOGY

5 LIMITATIONS OF THE STUDY

INTRODUCTION
Introduction to Home Loans.

Home is an integral part of a human being, who since his childhood, dreams to have living

space of his own. Once in a lifetime investment requires loan to do it and that is how the

home loan comes into scheme of things. Buying a home is dream for everyone. Due to the

rising price of properties, it has almost become impossible for an average earning person to

buy a home through lump sum payment. Therefore, the concept of home loan has come into

existence. There are plethora of housing finance institutions and banks both in public and

private sector which offer home loans. Choosing one institution and one offer for home loan

amidst the thousands available options have become a very complex task in our country.

Apart from this, there are intricate business jargons and technicalities that make this job more

tough and difficult. Through this study, I propose to identify the critical factors impacting the

growth and distinguishing the growth pattern in home loan portfolio particularly in public

sector banks in India.

Home is a necessity to all human beings and owning a home is a dream for

everyone. Earlier only a few people had the privilege to have an own home but

now with the availability of home loans provided by banks many people’s dream

has come true. These are loans which are provided either to buy an already built

ready to occupy a home or a flat or to construct a home.

Are you looking for a home loan? If yes, read our article Introduction to Home Loans on

BankandFinance.com and educate yourself before you start applying for house loans. Almost

every citizen wishes to purchase their own house in their name and in this day and age, land

and property prices have increased significantly, offering an attractive investment for

individuals in India.
A Home Loan is taken out from a bank or financial company in order to purchase/construct a

new house or reconstruct an existing mortgage. There are several different ways in which an

individual can get a home loan mortgage. Over the past few years, many new banks and

housing finance companies have opened up and are providing attractive and low lending

rates. There are many housing finance lenders which we work with who are ready to give you

the latest information about the bank of mortgage rates.

An individual who is looking for housing loans should be aware of all his requirements and

then he/she can search for housing finance services in India. Without knowing the

requirements it is difficult to understand the process of a home loan. A borrower who is ready

to go for house loans should check their monthly incomes and the location of the borrower.

You will also want to look into getting home insurance quotes for your new home. Given the

present economic conditions, the prices of properties are rapidly on the rise especially in the

major cities across India. This is making it difficult for middle class families to afford these

huge investments. Keeping this fact in mind, bank of mortgage services in India considered

these facts and came up with attractive mortgage interest rates so that the middle class

families can take a home lending bank loans. Borrowers should consider each and every

aspect of home lending from selecting the property to closing the finance loan amount. The

borrowers will be maintaining a long-term relationship with the finance company so it is wise

to take a loan from a bank which you feel comfortable with.

The core function of commercial banks is granting of credit. Although banks offer a wide

spectrum of financial services, lending has traditionally been their main function. Banks

profess experience, expertise and flexibility in lending which gives them a clear competitive

advantage over other financial institutions. Lending of funds to businessmen, traders and

industrial enterprises is one of the most important activity of a commercial bank.

is in the nature of loan and refers to the sum paid to the borrower. Thus, from the point of

view of the borrower it is ‘borrowing’ and for the bank it is ‘lending’. Loan may be regarded

as ‘credit’ granted where the money is disbursed and its recovery is made on a later date. It is

a debt for the borrower. While granting loans, credit is given for a definite purpose and for a

predetermined period. Interest is charged on the loan at an agreed rate and intervals of

payments.

NEED OF THE STUDY
In the era of growing importance of financial status, there is an increased importance for

various financial institutions which provide such loans.

The main objective of the study of the loans and advances is to understand the lending

policies and the various schemes of financial assistance provided by the bank. The bank

works comparatively different from other financial institutions and banks as it works

according to the rules and regulations and the guidelines by the RBI.

In the post reforms period, banks are facing tough competition due to interest rate regime. In

today’s buyers market, banks are facing cutthroat competition. Hence they are introducing

new loan products to meet the requirements of the various segments of the society to know

the importance of the retail lending in banks.

In this background the topic of personal lending schemes of ICICI BANK LTD is chosen as

the subject matter of this project. The findings of the project may be considered by ICICI

BANK LTD while formulating the policies for increasing the volume of personal lending

schemes.

As the country is witnessing globalization, privatization and liberalization wave with a strong

influence in culture and its implication, the need for loan have become inevitable at present

scenario, hence there is a need to study the progress and trends. Since more and more

competitors have entered the market with many features in their services.

The study is also required to analyze the views of the borrowers and to analyze the

satisfaction level of customers. It helps to know in detail the Loans and Advances provided

by the bank, right from its inception stage, growth and future prospects.

OBJECTIVES OF STUDY
There is no strongest foundation for your dream home, than a cheap loan. Home loans

have become those stronger foundations for people who want to own a home. The main

objectives of the study are as follows:-

 The main objective of this study is to know the Customers perceptions about home

loans of ICICI BANK LTD housing development finance corporation LTD.

 To study about the loan policy, credit evaluation and supervision of loans and

advances at ICICI BANK LTD.

 To study the satisfaction level of customers about home loans.

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

SCOPE OF STUDY
  Company has undergone rapid changes in the past 5 years due to many policy

decisions relating to capital markets, banking sector & licensing policy.

 The study is limited to only Indian overseas this study is mainly related to the

individuals who are interested in taking home loans from banks to fulfill their dreams.

 The study is mainly related to all the loans provided by Indian overseas only.

RESEARCH METHODOLOGY
  Research methodology is a way to systematically solve the research problem. It is a

way of written game plan for conducting research. In this we describe the various

steps that are taken by a researcher. So it is therefore desirable to design a research

methodology. For this research the research methodology is designed as under:

 Primary Data:

 A survey will be conducted to get the primary information. It is the data which is

collected directly that is for the first time in my project I will be used:

 • Home Interview

 • Questionnaire

 Secondary Data:

 For the secondary data, the pamphlets of various schemes from different banks have

been obtained.

TOOLS AND TECHNIQUES:

Calculation of EMI, Repayment Ability, Interest Rate- simple interest, Compound interest

1. Computation of EMI is calculated with the help of the following formula:

EMI = L×r× (1 + r) n/ ((1 + r) n – 1)

Where, L – Loan Amount

R – Rate of Interest in Decimals

N – Period of loan (in years).

2. Repayment Ability

Homan loan eligibility Rs .in lakh = amount determined by the bank as available for loan

repayments/loan installments per lakh Rs. for the selected tenure.

4. Compound interest = P(1+i) t-p

LIMITATIONS OF THE STUDY

 The study was conducted with the available data and the analysis made on it.
 The study is limited to the Home loans schemes under ICICI BANK LTD.

 Due to the limited period of study it may not be detailed.

 Lack of expertise being a trainee in analyzing the data.

 Getting valid data was a problem due to the sensitivity of the data provided.

 The project on loans and advances is more like a theoretical project.

 Time was one of the constraints during the study. The period of study is of 5 yrs.

 Some of the data vital to the study could not be accessed due to the confidentiality

policies of the bank.

 The study is limited to one branch of ICICI BANK LTD.