Industry analysis report on HOME LOAN INDUSTRY

 Industry Overview

India's home loan market is anticipated to grow at a brisk rate of around 22% during 2021 -
2026 on account of increasing urbanization and affordable mortgage rates. The Housing loan
rate is low in India when compared with developing economies, presenting opportunities for
the growth of the home loan market in the country. Moreover, the government push towards
affordable housing coupled with an acute shortage of housing is further expected to drive
Indian home loan over the next five years.

The Indian home loan market may be divided into various categories: customer type, loan
type, interest rate, type, housing loan, non-housing loan, source, bank type, tenure, property
area, mode of purchase, customer profile, and region.

In 2020, banks controlled the house loan market, and this trend is expected to continue in the
future years. This is because banks provide more appealing interest rates than home financing
businesses, which are supervised by the National Housing Bank. Furthermore, banks use the
marginal cost of funds-based lending rate (MCLR) model, which is popular with clients.

The vast majority of Indians prefer a floating interest rate. The 11–24-year segment has the
largest market share because the most popular home loan tenure in India is 20 years. The
salaried category has the highest demand for house loans due to their restricted purchasing
power.

The market is divided into sales executive, online, direct-walk-in, third-party administrators,
and others based on the mode of purchase. In the Indian house loan industry, the sales
executive category has the largest market share. The Indian house loan market is divided into
four regions: north, south, west, and east. In 2020, the North area had the greatest market
share, while the East region is expected to grow at the quickest rate over the forecast period.
 Major Players
To attract consumers, loan businesses provide flexibility in terms of interest rates, service
charges, fees, and loan tenure.

 SBI housing loans

 HDFC housing finance
 LIC housing Finance limited
 Indiabulls housing finance limited
 L&T housing finance limited
 PNB housing finance limited
 IIFL Housing finance limited
 Tata capital housing finance limited
 ICICI Housing finance

 Demand Drivers
 the increased movement of people from rural to urban locations
 the affordable home loan interest rates.
 the government impetus on affordable housing
 the shortage of housing in the country
 policy and regulatory support from the govt
 Fear of job loss or pay reductions motivates many to own rather than rent their
houses.

 Government Schemes

 Pradhan Mantri Awas Yojana

 P.M. Gramin Awas Yojana
 DDA Housing scheme
 NTR Urban Housing Scheme
 Haryana Housing board housing scheme
 Kerala housing board housing scheme
 SWOT Analysis

STRENGTH WEAKNESS

 Effective regulatory frame by RBI  Switching cost of customer.

 An active mainstream industry  Rise in outstanding loans and NPAs
 Robust & wide network of CBs &
HFCs
OPPORTUNITY THREAT

 Increasing Urbanization  Slowdown in economic growth

 Rising Affordability  Fluctuations in interest rates
 Increasing penetration of housing  Changes in regulatory environment
finance
 Rise in nuclear family system

 PESTEL Analysis

Political Economic
 Bureaucracy and interference in  Growth in the economy
Banks industry by government.  High inflation
 Legal framework for contract  Interest rates
enforcement
Social Technological
 Lifestyle changes  Rate of technological diffusion
 Family break-ups and  Impact on cost structure in Banks
nuclearization industry
 Attitudes (health, environmental
consciousness, etc.)
Environment Legal
 Reduced Footprints  Need of license by RBI or NBH
 Laws regulating environment  Various kind of hard documentation
pollution and KYC required
 Waste management in Banks sector  Anti-trust law in Banks industry.
 LOAN PORTFOLIO ANALYSIS

 ICICI Bank

Depending on your specific needs, such as buying a house, building a house, or acquiring property in
India, a variety of loans are available. Whatever your specific requirements are, ICICI Bank offers a
credit package to meet them.

Through ICICI Bank Express House Loan, a self-service digital platform for both ICICI Bank and
non-ICICI Bank clients, you may have a home loan approved in 5 simple steps. Non-Resident Indians
(NRIs) can also use this platform to get digital approval for their house loan.

The paperwork necessary to obtain a house loan is reduced to a bare minimum making your home
loan application process as simple as possible.

Collateral

For salaried employees, business professionals, and self-employed persons who own residential,
commercial, or special purpose property in their name, applying for a Loan Against Property at ICICI
Bank comprises a straightforward online application process. Enjoy low EMIs and an overdraft with
this loan, which has a term of up to 15 years.

Home loan features

 Attractive Interest rate: Repo rate linked interest rate

 Low EMI: benefit from the low EMI higher tenure
 Digital Sanctions: Online sanction in 5 simple steps
 PMAY: Get subsidy of up to Rs. 2.67 lakh under credit linked subsidy scheme from Govt. of
India

Documents required
 Axis Bank

Axis Bank Home Loan which offers home loans starting at Rs. 3,00,000. The Axis Bank Home Loan
comes with a host of benefits such as

Smaller EMIs

Minimum loan amount Rs. 3 lakhs

No pre-payment charges

Floating & fixed interest rates

follows a process: Application, Loan Sanction, Review, Approval & Disbursal With the right
documents and prompt follow-up.

Interest rates:

For salaried individuals

For self-employed individuals

Documents Required

 photograph

 Income statements

 Salary slips and Form 16

 Bank statements

 Latest Income-Tax Returns

 Credit report

 Age proof (Aadhaar, Passport, PAN card, Driving License, etc.)

 Address proof (Aadhaar, Passport, Driving License, electricity bill, telephone bill, ration card,
etc.)

 Photo identification proof (Aadhaar, Passport, PAN card, Voter id, Driving license, etc.)

 Property documents (Sale deed, agreement of sale with the builder, Land and building tax
paid receipts, certified copy of the sanctioned plan of the property, possession certificate,
original receipts of the advance paid for purchase, detail of estimated cost of construction, No
Objection Certificate (NOC) from the housing society or builder, letter from the
builder/society/housing board stating their bank account details for remittances)

Loans against property

Minimum loan amount: Rs.5 Interest Rate Applicable Maximum Tenure

lakhs
Floating 20 years
Maximum loan amount: Rs.5
crores

Overdraft facility against property 

Minimum loan amount: Rs.5 Interest Rate Applicable Maximum Tenure

 Floating 10 years
lakhs

Maximum loan amount: Rs.5

crores

Lease renting discounting

Minimum loan amount: Rs.5 Interest Rate Applicable Maximum Tenure

lakhs
Floating 9 years, subject to balance lease
Maximum loan amount: Rs.5 terms
crores

HDFC Bank

Housing Development Finance Corporation Limited (HDFC) is a Mumbai-based Indian financial

services organisation. It is India's largest housing finance company. Banking, life and general
insurance, asset management, venture capital, real estate, education, deposits, and education loans are
all areas where it operates.

It offers a three main types of home loan: home loan, home improvement loan, and home
extension loan.

They provide different loans to different category of people:

 Agriculturists

 Planters

 Horticulturists

 Dairy Farmers

Documents Required

For Application:
Income Documents:

Loan against collateral can be obtained with both the residential as well as commercial property.

HDFC Bank loan fees and charges includes: processing fees, fees on account of external opinions,
property insurance, charges on account of delayed payments, incidental charges.