PROJECT REPORT

ON
AN ANALYSIS ON LMI ECO SYSTEM WITH SPECIAL REFERENCE TO AADHAR
HOUSING FINANCE LTD.
Submitted in partial fulfillment of the requirements for the award of the Degree of Bachelor of
Commerce of Amity University, Lucknow
By
Vinayak Bajpai
ENROLLMENT NO: A7004614062

Under the guidance of

Ms. Sana Moid

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY, LUCKNOW
2014-2017

DECLARATION
I, Vinayak Bajpai, do hereby declare that the project entitled An
Analysis on LMI eco system with special reference to Aadhar
Housing Finance Ltd. has been undertaken by me as part of my studies
in the degree of bachelor of Business Commerce of Amity University,
Lucknow. I have completed this study under the guidance of Ms. Sana
Moid, lecturer at Amity Business School, Amity University, Lucknow.
I declare that this is my original work. Wherever work form other source
has been used have been appropriately acknowledged and referenced in
accordance with the requirements of NTCC Regulations and Guidelines.

Place: Lucknow
Date: 29/06/2016
Vinayak bajpai

FACULTY CERTIFICATE
Forwarded here with a summer internship report on AN ANALYSIS ON
LMI ECO SYSTEM WITH SPECIAL REFERENCE TO AADHAR
HOUSING FINANCE LTD
submitted by Vinayak Bajpai Enrollment NO. A7004614062 student of
BCOM (hons) 4TH Semester (2014-17)

This project work is partial fulfillment of the requirement for the degree
of Bachelors Of Commerce (honours) from Amity University Lucknow
Campus, Uttar Pradesh.

LECTURER
Ms. Sana Moid
AMITY UNIVERSITY
LUCKNOW CAMPUS
UTTAR PRADESH

AMITY UNIVERSITY, LUCKNOW

INTERNSHIP PROGRAM AND CONFIDENTIALITY
AGREEMENT
This AGREEMENT is between the office of the register Amity
university Noida and _____________________________________ a
student presently studying at the ----------The student named above
desires to undertake summer internship / training program as intern in
the institute / Department / Center ---------------- Amity University as a
part of his studies. The competent authority of the institute where the
student is presently studying has officially recommended the student,
confirming his antecedents, track record and good moral character.
CONFIDENTIALITY:
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confidential nature relating to the internship / training workplace.
Confidential information may include, but is not limited to, trade secrets,
proprietary information, customer information, customer lists, methods,
plans, documents, data, drawings, manuals, notebooks, reports, models,
inventions, formulas, processes, software,

information system,

contracts, negotiations, strategic planning, proposals, business, alliances,

and trading materials and / or any other intellectual property of the
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The student / intern agrees to observe the confidentiality requirements of

the Amity University, its Disciplinary procedure in all respects and any
additional requirements set out by the Amity University. Specifically, the
students / intern agrees to observe confidentiality in the following
respects.
As University intern, I agree that:
1. I will use confidential information only as needed by me to
perform my legitimate duties as intern. This means, among other
things that.
A. I will not seek confidential information for which I have no
legitimate need to know,
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alter or destroy any confidential information except as properly
authorized within the scope of my internship:
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confidential information; and
D. I will strive to protect the privacy of all confidential information
that I come into contact with.
2. I will safeguard and will not disclose my access code or any other
authorization I have that allows me to access confidential
information. I accept responsibility for all activities undertaken
using my access code and other authorization.

3. I will report to my Head / supervisor activities by any individual or

entity that I suspect may compromise the confidently of
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will be held in confidence to the extent permitted by law, including
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confidential information and for my failure to safeguard my access
code or other authorization to access confidential information. I
understand that I have no right or ownership interest in any
confidential information referred to in this agreement. The
University may at any time revoke my access code, other
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during my internship with Amity University, I will act in the best
interests of PMC.
I have read and understand the above definition of confidential
information I agree that I will not at any time, both during and after my
enrollment in University Internship, communicate

or disclose

confidential information to any person corporation or entity.

It is understood that any breach of confidentiality will result in
immediate termination of the internship and that a report of the breach
will be made by the concerned Head of Institution.

I HAVE READ THE ABOVE CONFIDENTIALITY AGREEMENT

AND AGREE TO ITS TERMS.AGREED
___________________________________ (SIGNATURE)
Vinayak Bajpai (PRINTED FULL NAME)
___________________________________
(DATE)
Signature

of

Authorized

signatory

institution
(Institution deputing the students)
ACCEPTED
REGISTRAR
AMITYUNIVERSITY
LUCKNOW, UP

of

the

STUDENTS CERTIFICATE
Certified that this report is prepared based on the summer internship
project undertaken by me on
AN ANALYSIS ON LMI ECO SYSTEM WITH SPECIAL
REFERENCE TO AADHAR HOUSING FINANCE LTD.
from 20TH may 2016 to 9th july 2016, under the able guidance of
LECTURER Ms. Sana Moid in partial fulfillment of the requirement for
award of degree of B.COM(Hons) 3rd SEM from Amity University, Uttar
Pradesh.

Date.______________

Signature
Mr.VINAYAK BAJPAI
Student

Signature
Ms. Sana Moid
Faculty Guide

Signature
Professor V.P.SAHI
Director
(ABS)

TABLE OF CONTENTS

Declaration

Faculty Certificate

Confidentiality, Student Certificate

Table of Contents

Chapter 1: Introduction

Chapter 2: Literature review

Chapter 3: Research Methodology

Chapter 4: Data Analysis and Interpretation

Chapter 5: Findings, conclusion and

suggestions
Bibliography

CHAPTER 1

Introduction

Aadhar Housing Finance Limited is promoted by Dewan

Housing Finance Limited and International Financial
Corporation (IFC) - a world bank initiative. The company
operates under the rules and regulations of National Housing
Bank. Aadhar has its operation spread in 9 state namely Uttar
Pradesh, Madhya Pradesh, Chhattisgarh, Orissa, Jharkhand,
Bihar, West Bengal, Gujarat and Rajasthan. Aadhar serves lower
middle income group whose income varies from Rs. 60,000 to
Rs. 3, 50,000 p.a. Aadhars customers belong to both salaried
and self-employed. Salaried customers are mainly Govt. grade
III and grade IV employees, Private company employees, Police
and Defense forces, Railway employees, Teachers etc. Selfemployed customers range from small Kirana Merchants,
Traders in Garments/Clothes/Books & Stationery/ Electronics &
Mobile, Barbers, Tailors, Small Vendors, Carpenters, Plumbers
etc. To ensure that focus does not get shift from this group the
maximum loan limit has been set is Rs. 20 lakhs. However the
repayment period ranges from 5 to 20 years. This channelized
approach would help the organization to achieve dedicated,
undiluted attention to this segment which would result in faster
and greater growth thus impaction nation as a whole.
Aadhar Housing Finance Ltd. Serves its customers by offering
variety of products. The products are as follows :
1. Home Loan (for salaried & for self-employed)
2. Loan for plot purchase or / and construction.
3. Home improvement loan

4. Home extension loan.

5. Loans against property.
6. Balance transfer and property.
Vision Statement of Aadhar
Aadhar would strive to deliver financial access to every
individual however humble he may be.
Mission Statement
Aadhar is a commitment to service to participate in the growth
of India, a commitment to provide security in the form of a roof
over every Indians head.

CHAPTER 2

Literature Review

Jafor Ali Akhan (2010) writes on Non-Banking Financial Companies

(NBFCs) in India. The book discussed the financial system in India. It
covers the financial intermediaries including commercial banks, regional
rural banks, cooperative banks and Non-Banking Financial Companies
in India. The book is good source in getting information on businesses,
classification, management of assets, risk coverage, etc of the NBFCs in
India. Shailendra Bhushan Sharma and Lokesh Goel (2012) write on
Functioning and Reforms in Non-Banking Financial Companies in
India. Non-Banking Financial Companies do offer all sorts of banking
services, such as loans and credit facilities, retirement planning, money
markets, underwriting and merger activities. These companies play an
important role in providing credit to the unorganized sector and to the
small borrowers at the local level. Hire purchase finance is by far the
largest activity of NBFCs. The rapid growth of NBFCs has led to a
gradual blurring of dividing lines between banks and NBFCs, with the
exception of the exclusive privilege that commercial banks exercise in
the issuance of cheques. This paper provides an exhaustive account of
the functioning of and recent reforms pertaining to NBFCs in India.
Subina Syal and Menka Goswami (2012) write on Financial
Evaluation of Non-Banking Financial Institutions: An Insight in Indian
Journal of Applied Research. The Indian financial system consists of
the various financial institutions, financial instruments and the financial
markets that facilitate and ensure effective channelization of payment
and credit of funds from the potential investors of the economy. Nonbanking financial institutions in India are one of the major stakeholders
of financial system and cater to the diversified needs by providing
specialized financial services like investment advisory, leasing, asset
management, etc.

CHAPTER 3

Research Methodology

Research in common jargon refers to a search for knowledge.

The purpose of research is to inform action. It is a process of
collecting, analyzing and interpreting information to answers to
questions. Research includes any gathering of data, information
and facts for the advancement of knowledge. The present study
has also been initiated with the basic objective to evaluate the
performance of housing loan of NBFCs. In order to achieve the
objectives of the study, the following research methodology was
used:

Data Collection: Both primary as well as secondary data were

collected for the study. Secondary data related to the growth and
financial performance of the selected housing companies was
collected from the AHFL official site and from the published
annual reports of the company. The secondary data included
growth in the number of housing loan companies over a period
of time, financial indicators like reserves & surpluses, current
liabilities, current assets, loans & advances, total revenue, total
expenses, profit before tax and profit/loss. Primary data were
collected from the company managers on a specially structured
questionnaire through personal interview method. The
questionnaire was pre-tested for its reliability of getting
responses from the respondents. . The primary data mainly were
focused on the perceptions of managers about companies
operational performance and problems faced by them.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Aadhar Growth Pattern:

Distribution Network of AHFL

PRODUCTS

SOURCING

PLOT APPROVED COLD CALLING

BY DA

SELFCONSTRUCTION

DATA

AADHAR EVENT

DATABASE

PARICHAY

NATURAL
MARKET

SANYOG

DATABASE
APARTMENT/ UNIT

EXTENSION

EVENTS

TWO REFERENCES
TWO GUARANTORS
APPLICATION
FORM

REPAIRS
AND CONNECTORS CAT
RENOVATION
A

RESALE

REFINANCE
BT

PARAMRSH SHIVIR

CONNECTORS CAT DATABASE

B

ADVT. SUPP.

LAP

AHFL - Products

AWAS MELA

SPOT SANCTION

BUILDER-BROKER
MEET

1. Home Loan ( for salaried)

Salaried customers are mainly Govt. grade III and grade IV employees, Private
company employees, Police and Defense forces, Railway employees, Teachers
etc.
Salary eligibility for applying for loan is as low as Rs.5000 per month.
At Aadhar we can avail home loan upto Rs. 20, 00,000 but not exceeding 80% of
the cost of property.
Factors responsible for deciding loan amount is determined after assessing the
individual and his repayment capacity based on various parameters. Factor are as
follows :
1. Age
2. Educational background
3. Stability and continuity of income
4. Number of dependence in family
5. Co applicants income
6. Assets
7. Liabilities
8. Saving habits and others
Maximum loan tenure is 20 years (T&C Apply). However tenure does not extend
beyond retirement age or 60 years (or 65 years in case of self-employed
individuals) whichever is earlier.
EMI depends upon
a. Quantum of loan
b. Interest rates applicable
c. Tenure of loan
Aadhar Home Loans can either be applied individually or jointly. The CoApplicant may or may not be a Co-owner of the property. However all the Coowners of the property must be a Co-Applicant. Co-Applicants should be
immediate family members like Spouse, Parents or Children.
2. Home loan ( for self employed)
Self-employed customers range from small Kirana Merchants, Traders in
Garments/Clothes/Books & Stationery/ Electronics & Mobile, Barbers, Tailors,
Small Vendors, Carpenters, Plumbers etc.
At Aadhar we can avail home loan upto Rs. 20, 00,000 but not exceeding 80% of
the cost of property.
Factors responsible for deciding loan amount is determined after assessing the
individual and his repayment capacity based on various parameters. Parameters
are :
1. Self employed person should be less than 65 years of age.
2. The applicant is self-employed, trader, or engaged in service industry.
3. Applicant should be in the same line of business for a minimum period of 5
years or should have inherited a business from parents.

4. The applicant should be able to contribute at least 20% of the total sum
required.
5. Sales tax registration or any other registration of business required by
statutory authorities / local laws is mandatory.
6. Business premises should not be on encroachment land without tittle to
property or deviated in construction from approved plans.
Maximum loan tenure is 20 years (T&C Apply). However tenure does not extend
beyond retirement age or 60 years (or 65 years in case of self-employed
individuals) whichever is earlier.
EMI depends upon a. Quantum of loan
b. Interest rates applicable
c. Tenure of loan
Aadhar Home Loans can either be applied individually or jointly. The CoApplicant may or may not be a Co-owner of the property. However all the Coowners of the property must be a Co-Applicant. Co-Applicants should be
immediate family members like Spouse, Parents or Children.
3. Land for plot purchase or/ and construction
Be it salaried employed or self-employed, anyone can purchase land (for plot or/
and construction).
Nonagricultural land situated within municipal/local development authority lines.
At Aadhar we can avail loan up to Rs. 20,00,000 but not exceeding 75% of the
cost of plot and in case of construction not exceeding 80% of the construction
cost.
Construction has to happen on the plot and within the time frame according to
NHB.
Factors responsible for deciding loan amount is determined after assessing the
individual and his repayment capacity based on various parameters. Factors are as
follows :
1. Age
2. Educational background
3. Stability and continuity of income
4. Number of dependence in family
5. Co applicants income
6. Assets
7. Liabilities
8. Saving habits and others
Maximum loan tenure is 20 years (T&C Apply). However tenure does not extend
beyond retirement age or 60 years (or 65 years in case of self-employed
individuals) whichever is earlier.
EMI depends upon a. Quantum of loan
b. Interest rates applicable

c. Tenure of loan
Aadhar Home Loans can either be applied individually or jointly. The CoApplicant may or may not be a Co-owner of the property. However all the Coowners of the property must be a Co-Applicant. Co-Applicants should be
immediate family members like Spouse, Parents or Children.
4. Home improvement loan
At Aadhar we can avail home loan up to Rs. 20, 00,000 but not exceeding 80% of
the cost in case of existing customer of Aadhar Housing. Whereas 50% of the cost
in case of new customer of Aadhar housing.
Actual loan amount is determined after assessing the individuals requirement and
the valuation of property by Aadhar Housing Finance Ltd.
Home improvement loan can be applied for various purposes. Purposes are listed
below as following
1. Flooring or roofing
2. Plumbing
3. Plastering
4. Electrical work
5. Painting
6. Grills and sliding door and windows.
7. Parapet wall and boundary wall, underground or overhead water tank.
8. Replacement of doors and windows or non movable assets Furniture,
upholstery etc are allowed to be considered under above category.
Maximum loan tenure is 10 years. However tenure does not extend beyond
retirement age or 60 years (or 65 years in case of self-employed individuals)
whichever is earlier.
EMI depends upon a. Quantum of loan
b. Interest rates applicable
c. Tenure of loan
Aadhar Home Loans can either be applied individually or jointly. The CoApplicant may or may not be a Co-owner of the property. However all the Coowners of the property must be a Co-Applicant. Co-Applicants should be
immediate family members like Spouse, Parents or Children.
5. Home extension loan
At Aadhar we can avail home extension loan up to Rs. 20, 00,000 but not
exceeding 80% of the extension works that one plan to do.
The actual loan amount is determined after assessing the individual requirement
and valuation of property by Aadhar housing.
Home extension loan can be applied for various purposes. Purposes are :
a. Construction or addition of new rooms within house premises.
b. Construction of new floors within house premises.

Maximum loan tenure is 20 years (T&C Apply). However tenure does not extend
beyond retirement age or 60 years (or 65 years in case of self-employed
individuals) whichever is earlier.
EMI depends upon
a. Quantum of loan
b. Interest rates applicable
c. Tenure of loan
Aadhar Home Loans can either be applied individually or jointly. The CoApplicant may or may not be a Co-owner of the property. However all the Coowners of the property must be a Co-Applicant. Co-Applicants should be
immediate family members like Spouse, Parents or Children.
6. Loan Against Property
Its a special mortgage loan.
At Aadhar we can avail Aadhar mortgage loan up to Rs. 20, 00,000 but not
exceeding 60% of the cost of property.
Factors responsible for deciding loan amount is determined after assessing the
individual and his repayment capacity based on various parameters. Factor are as
follows :
1. Age
2. Educational background
3. Stability and continuity of income
4. Number of dependence in family
5. Co applicants income
6. Assets
7. Liabilities
8. Saving habits and others

Maximum loan tenure is 15 years (T&C Apply). However tenure does not extend
beyond retirement age or 60 years (or 65 years in case of self-employed
individuals) whichever is earlier.

EMI depends upon

a. Quantum of loan
b. Interest rates applicable
c. Tenure of loan
Aadhar Home Loans can either be applied individually or jointly. The CoApplicant may or may not be a Co-owner of the property. However all the Coowners of the property must be a Co-Applicant. Co-Applicants should be
immediate family members like Spouse, Parents or Children.
7. Balance transfer and Top up
Balance transfer refers to when we have taken loan from other banks or NBFC we
can transfer loan to Aadhar for getting benefits of Aadhar competitive interest
rates.

Top up loan refers to loan from Aadhar on existing home loan.

SOURCING OF HOME LOANS

1.
2.
3.
4.
5.

Builder Segment
Connectors / DSAs
Natural Market
References
Conducting Events

AADHAR EVENTS
1. Aadhar Awas Mela : Under Aadhar Awas Mela AHFL performs the following :

Property exhibition for low and middle income group.

Property developers and builders, legal and technical experts
and perspective customers come under one roof.
As of now Aadhar Awas Mela has been helped in Allahabad,
Indore (Ujjain, Dewas, Pithampur), Bhubaneswar (Puri,
Nimapara, Khurda, Angul), Bhopal (Mandideep), Gwalior,
Kanpur, Bilaspur, Raipur (Bhilai).
2. Aadhar Home Loan Dhamaka / Spot Sanction : Under Aadhar
Home Loan Dhamaka/ Spot Sanction AHFL performs the
following function :

 Conducted in month of Diwali.

One spot home loan sanction facility to the lower and middle
income customer across all Aadhar location in India.
Two days camp is conducted under this scheme.
Free information on home loan eligibility, documentation,
legal and technical issues and property related matters.
3. Aadhar Paramarsh Shivir : Under Aadhar Para marsh Shivir
AHFL performs the following functions :
Gives freedom from rented houses by providing them
guidance to build or purchase their own house.
Putting up consultation camps.
Everyone is provided with free information on
financial,legal,technical and property related issues by
experts.
4. Aadhar Sanyog: Under Aadhar Sanyog AHFL performs the
following functions:
Bring information and awareness at the door step of the
customer inside lower and middle income residential
colonies.
The customer can solve all their queries by dropping in the
camps just beside their homes.
It provides convience to the customer in terms of awailing
guidelines and their support at their door step.
5. Aadhar Parichay: Under Aadhar Parichay AHFL performs the
following functions:
Short presentations sessions at the work place (i.e.,
factories,workshops,government
and
private
offices,hospitals,malls and showrooms etc.) of lower and
middle customers to inform them about different aspects of
home loan , related legal and technical issue and eligibility
and documentation.

 The attendees are provided with free consultation with all

their queries without having to step out of their workplace
which intern saves their valuable time.
6. Developer Customer interactive session/Builder Broker
Meet : Under Developer Customer interactive session/Builder
Broker Meet AHFL performs the following functions :
Create awareness on the supply side and encourages
builder/developers to come up with suitable prospects for the
lower and middle income segments.
Builders are made known of the facts on demand and
profitability in the affordable housing projects.

Aadhar Home Loan Approval Process

1. Firstly we fill the Home Loan Application Form. It is simple yet
comprehensive process.
2. One application form is filled; we submit the essential documents to process
home loan.
3. 3rd stem is to submit application and documents along with a Cheque
favoring Aadhar Housing Finance Pvt. Ltd. for initial processing fees.
Process for Disbursement of Home Loan
1. Assessment: At this stage we assess that can customer afford the loan
repayment. Credit team of Aadhar Housing Finance Ltd. Do income
verification of customer and validate the accuracy of information provided.
Personal details like Name, Residential Address, Date of Birth, and Pan Card
is assessed and also records of some recent credit accounts and seen.
Overdue Account which may have been listed against customers name
which includes information whether default amount has been paid or not is
also assessed. It is advisable to clarify and resolve any credit related issues
before lading ones application.

2. Conditional Loan Sanction: If there is no major issue with income

verification and credit checks, the conditional sanction of loan is provided to
customer. Company issue a formal letter of offer cum acceptance favoring
all the applicants of the loan. Customer has to make sure that information
provided by him is correct. Customer has to read document carefully and
sign in it and has to return the documents back to AHFL.
3. Security Assessment: Security assessment can be done in terms of technical
assessment and legal assessment. In technical assessment a qualified
technical officer will conduct a valuation on the property customer intended
to purchase or any property used as security. While in legal assessment a
qualified lawyer will examine the property documents i.e. chain agreement /
tittle etc. to determine if the property documents provided by customer are
conducive for lending.
4. Final Step: once customer accepts loan offer and the scrutiny of all the
above steps are done i.e. in other words a final check is completed,
submission of final processing fees is done. After clearance of final
processing fees cheque, the disbursement cheque for the approved amount is
prepared and handed over to customer. Upon receiving funds, customer will
start paying their 1st home loan repayment, usually a month after
disbursement date.
5.
List of Documents needed for KYC compliance
National Housing Bank (NHB) had introduced Know Your Customer (KYC)
Guidelines for Housing Finance Companies. We request you to co-operate with us
in complying with these guidelines.
Photo Id Proof (any one required)
Aadhar Card
PAN Card

Passport

Voters ID Card

Driving License

Residence Proof (any one required)

Passport

Electricity Bill

Telephone Bill

Ration Card

Letter from Employer

Bank Statement / Pass book with address

List of Documents for Salaried Individuals

Sr No. Document Name
1
KYC Documents
Salary slip for the last 3 months / Salary Certificate
2
(If variable components like Over Time and Incentives are reflected then salary slips for
the past 6 months are required)
3
Latest Form - 16 if is salary above Rs. 17000/- per month
4
Copy of all bank pass books / bank statements for the past 6 months including front page
5
Company profile if it is a lesser known organization
Note: Original documents are required for verification purpose only
List of Documents required for Self - Employed Businessmen
Sr No. Document Name
1
KYC Documents
Copy of last 3 years Income Tax Returns of the applicant along with computation of
2
income duly attested by a Chartered Accountant
Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm duly attested
3
by a Chartered Accountant
4
Brief Business Profile on the Letter Head of the firm by the applicant
5
Bank Statement for the last 1 year for the Savings A/c & Current A/c
Copy of either Shop & Establishment License / VAT Registration or any other mandatory
6
license / registration
7
Copy of the Partnership Deed (if Applicable)
8
Copy of Tax Deduction certificate / Form - 16A (if applicable)
9
Details of Contract (if applicable)

10
Copy of Advance Tax paid / self assessment tax paid Challan
Note: Original documents are required for verification purpose only
List of Documents required for Self - Employed Professionals
Sr
Document Name
No.
1
KYC Documents
Copy of last 3 years Income Tax Returns of the applicant along with computation of
2
income duly attested by a Chartered Accountant
Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm duly attested
3
by a Chartered Accountant
4
Brief Business Profile on the Letter Head of the firm by the applicant
5
Bank Statement for the last 1 year for the Savings A/c & Current A/c
Copy of either Shop & Establishment License / VAT Registration or any other
6
mandatory license / registration
7
Copy of the Partnership Deed (if Applicable)
8
Copy of Tax Deduction certificate / Form - 16A (if applicable)
9
Details of Contract (if applicable)
10
Copy of Advance Tax paid / self-assessment tax paid Challan
11
Copy Educational Qualification Certificate
12
Copy Professional Practice Certificate
13
Salary Certificate (in case of doctors having salaried income)
Note: Original documents are required for verification purpose only

CHAPTER 5

Findings and conclusion:

The AHFL Career Advantage
Work Environment & Culture: We at AHFL nurture a culture
of "Equal Opportunity" wherein every Aadhar Family Member
gets an equal friction free platform to boost his capabilities, a
freedom to take initiatives, process improvement, explore
various areas in his field under the guidance of a strong &
experienced Management team to whom we refer to as Mentors.

Training & Development: The organization on a regular basis

conducts workshops for different fraternities within the
organization where in the Aadhar Family Member receives a
platform to share his professional experiences and to gain from
others experiences. Apa+c.8++rt from the workshops there are
various training programs organized frequently where in leading
trainers & mentors from the industry are invited to guide, craft,
mould and equip the Aadhar Family Member.
Growth Opportunities: If you have it in you no one can stop
your growth in AHFL. Aadhar Family Members in the due
course of time have grown in terms of knowledge, monetary
benefits, experience along with the organization and much more
what we call the "AHFL for YOU" experience.
Rewards and Recognitions at AHFL: Every Individual
striving towards the goals and visions of AHFL are recognized
and awarded through various schemes of AHFL like RISE,
Biannual Awards etc
Competitors Of AHFL :
Shubham finance: Shubham Housing Development
Finance Company provides formal housing credit to those
with informal incomes and was amongst the first
organisations in the country that transcended documentbased underwriting and replaced it with a customised credit
program for each of our customers.

We do this by extensively engaging the customers in a

discussion about their life story - where they come from, what
they do, how they earn, spend and save. Taking a holistic view
of the customers and their nod on what they can pay every
month as an EMI, we introduce them to the world of formal
housing finance - solutions that best fit what they need to live in
better and safer homes.

Shree Ram Finance: Shriram Housing Finance Ltd.

(SHFL) is a Housing Finance Company registered with the
National Housing Bank (NHB) and promoted by Shriram
City Union Finance Ltd. (a flagship company of the 3
decades old, Chennai headquartered Shriram Group). We
received the Certificate of Registration from NHB in
August 2011, and commenced our lending operations from
December 2011 in addition to Shriram City Union Finance
Limited, who hold 77.25% of the equity in our Company,
Valiant Mauritius Partners FDI Limited is the other
shareholder, holding the balance of 22.75%.

Gruh Finance: Gruh finance ltd a subsidiary of HDFC ltd

is a housing finance company recognize by National
housing bank. Gruh offers loans to individuals for
purchase, construction,repairs , renovation of dwelling
units. Gruh also offers loans to self employed segments
where formal incomes proof are not available. The income
of such applicants is appraised based on field investigation

and surrogates income proofs.Gruh also offers loans to

professionals for purchase of office premises.

AN ANALYSIS ON LMI ECO SYSTEM

Indias financial services sector is comprised not just of banks but also
non-banking financial companies. The role of NBFCs is important to the
economy, when a large part of the population still lives in rural/semiurban areas. With an economic revival is pegged to the development of
rural and suburban economies, NBFCs role in deposit mobilization and
credit extension can hardly be overemphasized. The role of NBFCs as

effective intermediaries has been well recognized, with the core

strengths of NBFCs being strong customer relationships, excellent
understanding of regional dynamics, well-developed collection systems
and personalized services. In this function, they are perceived to be
playing a complimentary role to banks rather than being competitors,
reaching out in areas where banks have a limited presence.
At the same time, NBFCs have also created a niche for themselves in
terms of product profile, thereby providing a fillip to the growth and
development of respective sectors of their operations. NBFCs bring the
much-needed diversity to the financial sector, thereby diversifying risks,
increasing liquidity in the market, thus promoting financial stability and
bringing
efficiency
to
the
financial
sector.
The role of NBFCs cant be undermined in the financial inclusion
agenda. While RBIs model for financial inclusion is essentially bankdriven, NBFCs have the potential to partner banks in driving home the
agenda, especially with their wider and deeper reach.
As the importance of NBFCs has been growing over time, there arises
the need for regulating these financial institutions primarily because of
high leverage, the asset-liability mismatch and the capacity to engender
havoc to the real sectors of the economy. The process started in the
1950-60s when several banks failed, undermining the necessity to
regulate not only banks but also other financial institutions that have the
potential to cause disruption. Over time, we have seen RBI tightening
the regulatory structure over NBFCs, with registration requirements,
enhanced reporting and supervision as their growing size and
interconnectedness raise potential concerns on financial stability. The
need to regulate was also reinforced after the global financial crisis,

which highlighted the way through its interconnectedness with the

regular banking system NBFCs has potential to mar the global financial
growth.

Conclusion
To sum it all, while NBFCs play a critical role in the
objectives of financial inclusion, given their customer
reach and presence, it is critical for them to have adequate

risk management systems so as to not create a contagion

risk. We must admit looking at the various developments
over a period of time that the regulator has played a
remarkable role in promoting NBFCs while putting
adequate risk management steps in place. We expect
NBFCs to play a more complimentary role with banks
and in a more systematic environment given the
uniqueness of the sector.
The future seems to be very crucial for NBFCs and only
those who will be able to face the challenge will be
standing the test of time and will survive in the long run.
However to survive and to constantly grow, NBFCs have
to focus on their core strengths while improving on
weaknesses.
Besides, they will have to be very dynamic and constantly
endeavour to search for new products and services in
order to survive in this ever competitive financial market.

BIBLIOGRAPHY
A Statutory Guide for Non-Banking Financial Companies
HFCs Promotion and Development National Housing
Bank, www.nhb.org.

 ANNUAL REPORTS OF AHFL :

Annual Report FY - 14-15
Annual Report FY - 13-14
Annual Report FY - 12-13
Annual Report FY - 11-12
Annual Report FY - 10-11

WEBLIOGRAPHY
www.abodesindia.com
www.indiahousing.com
www.indianrealestateforum.com