CHAPTER 1

1.1 About industry

1.2 Company profile

1.1 About industry

INTRODUCTION
The moment you decide to buy a home, you can put in your application. Yes, you can apply for a
loan even before you have selected the property.
The property need not even be in the same city where you are residing. The only condition being
that IDBI has home loan operations in both the cities.
Should there be a change in your financial status or plans, you can withdraw your sanction
within 6 months of approval.
However, we are always ready to assist our customers in the event of legitimate problems. And,
we might reconsider this if we find that there are satisfactory reasons for the delay.
And, neither would we charge you extra for this delay.
If it is refinancing you are interested in, it is possible within 6 months from the date of purchase
of property.

Finance your dream home with a Loan from Citibank.

Our Home Loans offer competitive interest rates, flexible repayment options and money saving
features such as zero application charges, nominal processing fees and no-prepayment charges up
to 25% of your loan amount every year. We offer home loans ranging from Rupees 2 lakhs to 1
Crore for: Ready-for-occupation property, Under Construction property, Plot of land, Self .

HOME SAVER
At Standard Chartered, we recognize that owning a home is a very important goal, and probably
the largest investment in a lifetime. That's why we have created Home Saver for you. Home
Saver is a revolutionary new concept in home loans designed to save you interest thereby letting
you pay off your loan faster. An account that lets you reduce the interest on your home loan!
Every month, all you need to do is deposit your surplus funds, be it your salary or other savings
into Home Saver, instead of letting them lie idle in different accounts. All this money then works
towards reducing your interest payable because the deposits automatically reduce the balance
outstanding on which the interest is calculated on a daily basis. So, more the number of days you
place your savings into Home Saver, greater is the interest saving! Home Saver is currently
available in Bangalore, Chennai, Delhi, Kolkata, Mumbai and Pune.
Unique Features
*

Freedom to save more

Freedom to reduce your loan period

Freedom to take a break from EMI payments

Freedom to access your money - anytime, anywhere

With Home Saver, there is more to save than a normal low-cost home loan. Because interest is
calculated on your daily balances, you can reduce your interest cost substantially even if your
surplus savings are in the account for only a day. For each day that your outstanding balance
reduces, you pay less interest for that day. Since that's interest saved not earned, you save on
taxes that you would otherwise pay on your interest earned!

Home Saver gives you the flexibility and freedom to make excess payments so that you can
reduce the duration of your loan anytime, without penalties. Only Home Saver gives you the
flexibility to defer your EMI payment. So if at any time, you are faced with an emergency and
find it difficult to pay your EMI, you can take a payment holiday once every year- after the first
year without any penalty.
You have the flexibility of depositing and withdrawing cash just as you would with your normal
bank account. Home Saver comes with a globally valid ATM-cum-Debit Card, which allows you
free access to your money from over 2000 ATMs across the country. Anytime, anywhere. That's
not all; you also get a personalized chequebook, Phone banking and Internet banking - to add to
the convenience of banking with us.

COMPANY PROFILE OF CITIBANK

The Citibank of New York was established in 1812.. By 1890 however, Citibank was well on its
way to becoming the largest bank in the world. In 1902 it was the first US. National Bank to
open an overseas branch and in 1929 became the largest commercial bank in the world.
In 1968, the bank became a subsidiary of first National City Corporation- a newly formed
one-bank holding company, incorporated in Delaware. In 1974, the holding company changed its
name to Citicorp. The Bank has been known as Citibank N.A. Since 1976. Citicorp is the parent
company of which Citibank N.A. is the principal subsidiary.

Since the 80s Citibank has focused on three-core business:

Institutional Banking
Investment Banking
Individual Banking
Citibank India
Citibanks Indian operations began in 1902 in Calcutta. Citibank then opened its second branch
in India at Bombay in 1904 and then spread Delhi (1963) and Madras (1965). Presently, Citibank
operates six branches in the country via Delhi, Kolkata, Chennai and Mumbai. Citibank is now
the largest private sector financial institution in the country in terms of revenues and operating
profits.

CITIBUSINESS IN INDIA

Non-Resident Indian Business

Branch Banking

Citibusiness Direct

Credit Cards

Global Finance

Corporate Finance etc.

According to the Banking & Finance TNS Mode opinion poll for 2003, Citibank is the most
admired bank operating in India.

HOME LOANS CITIBANK TERMS & CONDITIONS

CITIBANK's Home Loans offers you various unique benefits <advantages_homeloans.htm> and
are easy to arrange and repayable in easy monthly instalments. The terms of the loan can be
structured according to your unique requirements.
Home Loans can be applied for by either individually or jointly. Proposed owners of the
property, in respect of which the loan is being sought, will have to be co-applicants. However,
the co-applicants need not be co-owners.
Loans can be availed upto a maximum of 85% of the cost of the property (including the cost of
the land). CITIBANK lends upto a maximum of Rs. 1,00,00,000 on a Home Loan to an
individual. You can repay the loan over a maximum period of 15 years . We will determine the
loan amount after evaluating the repayment capacity of the individual. CITIBANK's main
concern is to help individuals comfortably repay the borrowed amount.
Get in touch with your nearest CITIBANK office today. We will be pleased to discuss and help
you realise your plans for a house.

FEES
A processing fee of 0.5% of the loan amount applied for i.e. Rs. 5 per Rs. 1000 of the loan
applied for is payable when the application form is submitted to CITIBANK. This fee is in
respect of costs incidental to the application.
For example

Loan applied for Fees Rs. 20,000 Rs. 1,00,000 Rs. 100 Rs. 500On approval of the loan, a loan
offer is made to you. On acceptance of the offer, you will have to pay an administrative fee of
0.5% of the loan approved. You can also pay the processing and administrative fees upfront i.e.
1% of the loan at the time of submission of the loan application itself. RATE OF INTEREST
The current applicable fixed rate of interest <helpdesk_homefaq.htm> in
respect of the total loan approved is are as follows:
For loans upto Rs.2,00,000
Term of Loan (No. of Years)Rate Per Annum (%p.a)Upto 5 6 - 10 11 - 15
10.00 10.75 11.00For loans greater than Rs.2,00,000
Term of Loan (No. of Years)Rate Per Annum (%p.a)5 10 15 10.00 11.00
11.25All loans on annual rest basis .
You repay the loan in Equated Monthly Instalments

(EMIs) comprising

principal and interest.

EMI per Rs.1,00,000 (for loan upto Rs.2,00,000)
Term of loan (No. of years)Rupees 52199101401151159EMI per Rs.1,00,000
(for loan greater than Rs.2,00,000)
Term of loan (No. of years)Rupees 52199101416151175Pending final
disbursement, you pay interest on the portion of the loan disbursed. This
interest is called pre-EMI interest .

An early redemption charge of 2% of the amount being prepaid is payable

on

repayment

of

loan

ahead

of

schedule.

SECURITY FOR THE LOAN

Security for the loan is a first mortgage of the property

to be financed,

normally by way of deposit of title deeds and/or such other collateral

security as may be necessary. Interim security may be required, if the
property is under construction.

HOW TO APPLY
It's simple! You can either download (in a pdf format) the application form
or, get the application form by email or normal mail. Alternately, you can
collect the application forms from any of your nearest CITIBANK Offices.
You need to submit it along with supporting documents and the processing
fees at any CITIBANK office that is convenient to you. You can make
payments by cheque marked "Payee's account only" drawn on a bank in a
city where CITIBANK has an office, by demand draft (payable at par to
CITIBANK)

or

by

cash.

You can make an application at any time after you have decided to acquire a
house, even if the house has not been selected or the construction has not
commenced.

Citibank will consider your application, make enquiries as it deems

necessary and convey its decision to you. On approval of the loan, a loan
offer is made to you. On acceptance of the offer, you will have to pay an
administrative

fee

for

the

loan

approved.

You can take disbursement of the loan after the property has been
technically appraised, all legal documentation has been completed and you
have invested your own contribution in full (Own contribution is the total
cost of the property less CITIBANK's loan). The loan will be disbursed in full
or in suitable instalments (normally not exceeding three in number) taking
into account the requirement of funds and progress of construction, as
assessed by CITIBANK and not necessarily according to a builder's
agreement.

SUPPORTING DOCUMENTS TO BE ATTACHED:

For approval of loan
a)

Common for all applicants:

1. Allotment letter of the co-operative society / association of apartment

owners.
2. Copy of approved drawings of proposed construction / purchase.
Agreement

for

sale/sale

deed/detailed

cost

estimate

from

architect/engineer for the property to be purchased / constructed.

If you have been in your present employment / business or profession for
less than a year, mention details of occupation for previous 5 years,
giving position held, reasons for change and period of the same.
3. Applicable Processing Fees.
4. Any other information regarding your repayment capacity that is
necessary and will assist CITIBANK in appraising the case.

b)

Additionally, If You Are Employed:

1. Latest salary slip/salary certificate showing all deductions.

2. If your job is transferable, permanent address where correspondence
relating to the application can be mailed.
3. A letter from your employer agreeing to deduct the monthly instalment
towards repayment of the loan from your salary. This will expedite the
processing of your loan application.
If You Are Self-Employed:
1. Balance Sheets and Profit & Loss Accounts of the business/profession
along with copies of Individual Income Tax Returns for the last three
years certified by a Chartered Accountant.
2. A note giving information on the nature of your business/profession, form
of organisation, clients, suppliers, etc.
For Disbursement Of Loan
Please contact your local CITIBANK office for the required documentation.
Please take photocopies of all documents that are submitted to
CITIBANK (including the application form) for your personal record.
In case you have further queries, check our FAQ <helpdesk_homefaq.htm>
section. Alternately, get in touch with us <feedback.asp>, we will be glad to
help you.

ADJUSTABLE RATE OF INTEREST

The Housing Finance market has witnessed periodic fluctuations in interest
rates - both upward and downward. In recognition of the same, CITIBANK
has introduced an Adjustable Rate Home Loan (ARHL) facility to enable a
well informed, market savvy customer to take benefit of the interest rate
movements.
The interest rate on your ARHL is linked to CITIBANK's Retail Prime Lending
Rate (RPLR). You will be provided with an annual statement indicating the
details of the payments during the year.
Of course, you always have the option of the normal Home Loan that
protects you from the potential risk of an increase in interest rates over a
period of time. CITIBANK takes care of your interest in both ways, leaving
the choice to you - the consumer.

TERMS & CONDITIONS

CITIBANK's

ARHL

offers

you

various

unique

benefits

<advantages_homeloans.htm> and is easy to arrange and repayable in easy

monthly instalments. The terms of the loan can be structured according to
your unique requirements.
ARHL can be applied for by either individually or jointly. Proposed owners of
the property, in respect of which the loan is being sought, will have to be coapplicants. However, the co-applicants need not be co-owners.

Loans can be availed upto a maximum of 85% of the cost of the property
(including the cost of the land). CITIBANK lends upto a maximum of Rs.
1,00,00,000 on a ARHL to an individual. You can repay the loan over a
maximum period of 20 years . We will determine the loan amount after
determining the repayment capacity of the individual. CITIBANK's main
concern is to help individuals comfortably repay the borrowed amount.
Get in touch with your nearest CITIBANK office today. We will be pleased to
discuss and help you realise your plans for a house.
FEES
A processing fee of 0.5% of the loan amount applied for i.e. Rs. 5 per Rs.
1000 of the loan applied for is payable when the application form is
submitted to CITIBANK. This fee is in respect of costs incidental to the
application.
For example
Loan applied forFeesRs. 20,000 Rs. 1,00,000Rs. 100 Rs. 500On approval
of the loan, a loan offer is made to you. On acceptance of the offer, you will
have to pay an administrative fee of 0.5% of the loan approved. You can
also pay the processing and administrative fees upfront i.e. 1% of the loan
at the time of submission of the loan application itself.

RATE OF INTEREST
The interest rate on your ARHL is linked to CITIBANK's Retail Prime Lending
Rate (RPLR). The rate of interest is revised every six months from the date
of first disbursement, if there is a change in RPLR. However, the EMI on the
ARHL will not change. For instance, if the interest rate increases, the interest
component in EMI will increase; the principal component would reduce,
resulting in an extension of the term of the loan and vice-versa when the
interest rate decreases. You will be provided with an annual statement
indicating the details of the interest and principal payments made during the
year.
The applicable rate of interest

in respect of the total loan approved is

11.00% per annum.

All loans on annual rest basis. You repay the loan in EMIs comprising
principal and interest. Pending final disbursement, you pay interest on the
portion of the loan disbursed. This interest is called pre-EMI interest .
EMI per Rs.1,00,000
Term of loan (No. of years)Rupees 201047There is no early redemption
charge on repayment of a loan ahead of schedule.
SECURITY FOR THE LOAN
Security for the loan is a first mortgage of the property

to be financed,

normally by way of deposit of title deeds and/or such other collateral

security as may be necessary. Interim security may be required, if the

property is under construction.
HOW TO APPLY
It's simple! You can either download (in a pdf format) the application form,
or you can collect application forms from any of the CITIBANK Offices
from

CITIBANK

authorised

deposit

In case you have further queries get in touch with us .

or

agents.

Supporting Documents to be attached:

For approval of loan
a) Common for all applicants:
1. Allotment letter of the co-operative society/association of apartment
owners.
2. Copy of approved drawings of proposed construction/purchase.
3. Agreement

for

sale/sale

deed/detailed

cost

estimate

from

architect/engineer for the property to be purchased/ constructed.

4. If you have been in your present employment/business or profession for
less than a year, mention details of occupation for previous 5 years,
giving position held, reasons for change and period of the same.
5. Applicable Processing Fees.
6. Any other information regarding your repayment capacity that is
necessary and will assist CITIBANK in appraising the case.

b) Additionally, If You Are Employed

1. Latest salary slip/salary certificate showing all deductions.
2. If your job is transferable, permanent address where correspondence
relating to the application can be mailed.
3. A letter from your employer agreeing to deduct the monthly instalment
towards repayment of the loan from your salary. This will expedite the
processing of your loan application
If You Are Self-Employed:
1. Balance Sheets and Profit & Loss Accounts of the business/profession
along with copies of Individual Income Tax Returns for the last three
years certified by a Chartered Accountant.
2. A note giving information on the nature of your business/profession, form
of organisation, clients, suppliers, etc.

For Disbursement Of Loan

Please contact your local CITIBANK Office for the required documentation.
Please take photocopies of all documents that are submitted to CITIBANK (including the
application form) for your personal record.
In case you have further queries, check our FAQ section. Alternately, get in touch with us , we
will be glad to help you.

CITIBANK INDIA A PERSPECTIVE

Citibanks Indian operations began in 1902 in Calcutta. The entry of Citibank (then known as
International Banking Corporation) was part of the Asian Thrust with branches opening up in
Hong Kong, China, Singapore and Japan. It was virtually an invasion of the mysterious east.
Citibank then opened its second branch in India at Bombay in 1904 and then spread Delhi (1963)
and Madras (1965). Presently, Citibank operates six branches in the country via Delhi, Kolkata,
Chennai and Mumbai. Citibank is now the largest private sector financial institution in the
country in terms of revenues and operating profits.

Global Consumer Business (GCB):

The only truly Global Consumer Business, Citibank has been creating global products and global
platforms that meet the expanding banking needs of middle-class consumers whose numbers are
rapidly growing throughout the world. Currently in 57 countries, Citigroups consumer
operations offer individuals, families and small, businesses products and services they need to
reach their financial goals. There is little duplication or overlap among consumer business. For
the most part, they provide each other with products, services, resources or delivery channels not
previously available to them.
Earlier known as Consumer Services Group (CSG), the Global Consumer Business is a
very important player in the India market. Beginning in 1985, Global Consumer Business has
changed the very concept of consumer banking in India by pioneering several schemes for the
individual customer.

CITI BUSINESS IN INDIA

Non-Resident Indian Business
The NRI program was essential initiated as a part of the RBI effort to ensure foreign capital
flows into the country. Since the products are primarily dictated by Reserve Bank innovations
which have been the key to the phenomenal success of the NRI business. The first step towards
providing qualitative service was by establishing Relationship Managers and today the NRI
business operates from 23 locations around the globe with over 50,000 customers and deposits
exceeding U.S.$ 1.4 billion.
Today Citibank is the largest foreign bank and second only to the State Bank of
India in terms of the number of NRI deposits in the country.

Branch Banking
Branch Banking provides the traditional products and services like Savings Accounts, Current
Account, Time Deposits, and Demand Draft etc. Citibank introduced the concept of Marketing
in financial services by packaging the traditional products like time Deposit in a customer
friendly fashion in the form of Unfixed Multi Deposits.
For more than 20 million Citibank customer in 42 countries, over 1,100 branches and a variety of
electronic access systems are the gateway to state-of-the-art banking products and best ideas
from around the world. It provides a new dimension in customer services by introducing
facilities like Citibank Phone Banking and Automated Teller Machines Citibank phone
banking enables all banking and cards customers to transact on the phone 24 hours a day, 7 days
a week and get all their banking needs serviced. It enhanced ATMs, along with all of the other
electronic delivery mechanisms it now offers, place customers entire financial relationships at
their fingertips.

Direct Access, Citibanks personal computer banking product, is rated No. 1 by Smart Money
magazine. For nearly 2,00,000 customers worldwide, Citigold offers personalized, priorityservice banking. Home loans are an important product offering in almost all of Citibanks
markets
It also provides unique financial packages like Equity Advance where in a customer can
leverage the equity in his shares and other financial assets without losing any of the benefits of
owing them.

HOME LOANS RATES

The current rate of interest for these loans is 11% for 6-20 years. The interest rate on these loans
is linked to the Retail Home Loan - Prime Lending Rate (RHL-PLR) and moves up or down with
the RHL-PLR. The EMI table is given below
Loan Tenure

Rate of Interest

EMI per Lac

5 years

10.50%

2149

10years

11.00%

1378

15years

11.00%

1137

20years

11.00%

1032

Interest Calculated on basis of monthly rest.

Maximum Tenure of 20 years.

Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25
lakhs

No fee for part prepayment. In the case of full prepayment or

foreclosure, 2% will be applicable on amount prepaid including any
such amounts prepaid in the last one year

Office Premises Loan

The current rate of interest for these loans is 12.25% for all tenures. The interest rate on these
loans is linked to the Retail Home Loan - Prime Lending Rate (RHL-PLR) and moves up or
down with the RHL-PLR. The EMI table is given below

Loan Tenure

Rate of Interest

EMI per Lac

5 years

12.25%

Rs2326

10years

12.25%

Rs1490

15years

12.25%

Rs1240

Interest Calculated on basis of monthly rest.

Maximum Tenure of 15 years.

Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25
lakhs

A pre-payment fee of 2% on the amount prepaid, either in part or full.

Loan Against Property

The current rate of interest for these loans is 11.75% for residential property and 12.75% for
commercial property. The interest rate on these loans is linked to the Retail Home Loan - Prime
Lending Rate (RHL-PLR) and moves up or down with the RHL-PLR. The EMI table is given
below

Residential Property

Commercial Property

Tenure

EMI

EMI

5 years

2212

2263

10years

1420

1478

15years

1184

1249

Interest Calculated on basis of monthly rest.

Maximum Tenure of 15 years.

Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25
lakhs

No fee for part prepayment. In the case of full prepayment or

foreclosure, 2% will be applicable on amount prepaid including any
such amounts prepaid in the last one year.

Fixed Rate Loans

Home Loan

Tenure (years)

Interest Rate (% p.a.)

EMI

1-5

11.00%

2175

6 10

11.50%

1406

11 20

11.50%

1066

21 30

12.00%

1029

The interest rate is calculated on an monthly reducing basis.

Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25
lakhs

No fee for part prepayment. In the case of full prepayment or

foreclosure, 2% will be applicable on amount prepaid including any
such amounts prepaid in the last one year.

Land Loan
Tenure (years)

Interest Rate (% p.a.)

EMI

15

11.00%

2175

6 10

11.50%

1406

11 20

11.50%

1066

The interest rate is calculated on an monthly reducing basis.

Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25
lakhs

No commitment fee.

No fee for part prepayment. In the case of full prepayment or

foreclosure, 2% will be applicable on amount prepaid including any
such amounts prepaid in the last one year.

Office Premises Loan

Tenure (years)

Interest Rate (% p.a.)

15

12.75

6 10

12.75

11 15

12.75

The interest rate is calculated on an monthly reducing basis.

Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25
lakhs.

A pre-payment fee of 2% on the amount prepaid, either in part or full.

Loan against Property

Type of property

Interest Rate (% p.a.)*

Residential

12.25

Commercial #

13.25

The interest rate is calculated on monthly reducing basis.

Loans against commercial property shall be offered only to doctors.

Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25
lakhs.

Disbursement
Your loan will be disbursed after you identify and select the property or home that you are
purchasing and on your submission of the requisite legal documents.
While you may be under the impression that the list of documents asked for is rather extensive,
please note that it is for your own good. Each and every single document asked for will be
verified and checked to ensure your safety.
This may take some time but we want to ensure a clear title and will complete all the legal and
technical verifications to ensure that you have full rights to your home.
The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax
authorities (if applicable) is also needed.
On satisfactory completion of the above, on registration of the conveyance deed and on the
investment of your own contribution, the loan amount (as warranted by the stage of construction)
will be disbursed by IDBI.
The disbursement will be in favour of the builder/seller.
List of documents for disbursement
Standard documents:
Loan Agreements
Disbursement Requests
Post-dated cheques
Personal guarantors documents, as the case may be
Some documents are specific to each state. For further information, please contact the nearest
office.

Sanctioning
Documents
Passport size photograph.

Age verification: PAN card, Voters ID, Passport, License.

Bank statement for the last six months.

Income Documents e.g. Latest Form 16, Certified IT returns for latest 3 years.

Processing Fee cheque.

Loan Enclosure letter.

These are the documents required for sanctioning a loan. You may be asked to submit further
legal documents if required by IDBI or its approved lawyers.
Loan Amount
A number of factors are taken into account when assessing your repayment capacity. Your
income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity of
your employment/ business are some of them.
However, there are ways by which you can enhance your eligibility.

If your spouse is earning, put him/her as a co-applicant. The additional income shall be
included to enhance your loan amount. Incidentally, if there are any co-owners they must
necessarily be co-applicants.

Did you know that your fiance's income can also be considered for sanctioning the loan
on your combined income? The disbursement of the loan, however, will be done only
after you submit proof of your marriage.

Providing additional security like bonds, fixed deposits and LIC policies may also help to
enhance eligibility.

While there is no need for a guarantor, it could be that having one might enhance your credibility
with us. If so, our loan officer would provide you with the necessary details.
The final amount to be sanctioned will depend on your repayment capacity. However, what you
ultimately are entitled to will have to conform within the limits fixed for each loan.

Also, when the company looks at the total cost, registration charges, transfer charges and stamp
duty costs are included.

Eligibility
Home loan

You must be at least 21 years of age when the loan is sanctioned.

The loan must terminate before or when you turn 65 years of age or before retirement,
whichever is earlier.

You must be employed or self-employed with a regular source of income.

Land loan

You must be at least 21 years of age when the loan is sanctioned.

The loan must terminate before or when you turn 65 years of age or before retirement,
whichever is earlier.

You must be employed or self-employed with a regular source of income.

You must be purchasing a plot of land for residential use.

The purchase has to be from a development authority or from a registered co-operative

society.

The purchase of the land must be for the construction of a house.

Things to know about home loan
Benefits
Flexibility, Savings and a No-penalty option

7.75 % interest on select tenures *

On approval of your Home Loan, you get a Gold Credit card **, free for the first year

If you are a customer with HSBC for 6 months or more, you are entitled to a special
relationship discount on 1.8 % of the processing fees. The discounts are 1 % for HSBC
Premier and NRI customers, 0.75 % for PowerVantage customers and 0.5 % for others.

No application charges

A no penalty option which allows you to pre-pay upto 25% of your loan every year, after
the first six months.

Flexible repayment options - Fixed and floating interest rates and an option to Change
your decision every year at no extra cost

Higher loan amounts with respect to your income

Do your homework

Eligibility - check if you meet the basic requirements for a Home Loan

Tools and Calculators - Find out how much home loan you can avail and calculate your
EMIs

Service Charges - know more about our applicable charges

Checklist - find out what documents you need to have

Eligibility
To qualify for a home loan, the following criteria apply:

Age:

Minimum

age

of

applicant

guarantor

21

years

Maximum age of applicant / guarantor - 58 years for salaried (60 for Govt. employees),
65 in case of self-employed at the time of loan maturity

Residential Status: Applicant should be buying a house and must be residing within the
city limits of areas where HSBC operates.

Borrower: Individual wage earner or self-employed. Due to tax advantages many selfemployed purchase properties in their business' name i.e. Proprietorship or Partnership.
We will consider applications made in these entity names.

Co-applicants/Guarantor: All joint owners of the property necessarily have to be coapplicants and will sign all legal papers.

Income Requirement: Net income of applicant should be greater than Rs. 150,000. A
maximum of 2 incomes of joint applicants can be clubbed to the income of the applicant.
Clubbing of income is allowed only for spouse or parent as far as it is part of the
household income.

Documentation
Documents required for Home Loans (Residents):
Serial No.
Documents
Salaried Individuals
Self Employed
Partnership / Proprietors
1. Latest salary slip showing statutory deductions
2. Latest Form 16 (TDS Certificate from employer)
3.Proof of age (voter's identity card / valid driving licence / passport
/ school leaving certificate)
4. Proof of residence/office (tel / electricity bill / passport / ration

card)
5. Bank statements for last 6 months
6. Computation of income for last 2 years certified by a CA
7. P & L A/c & Balance Sheet for last 2 years certified by a CA
8. Copies of I.T. returns for the last 2 years
9. Partnership deed
10. Letter of Authority
11. Memorandum & Articles of Association
12. Board resolution signed by directors

Documents required (NRIs):

Valid Passport Copy with visa stamp

Latest Work Permit

Employment contract

Six months overseas bank statement

12 months NRE/ NRO account statement

Local co-applicant is mandatory

SERVICES CHARGES
Annual Service Charges

1.5% of limit. (Discount for existing customers 0.5%, 0.75% for PowerVantage on applicable
charges and 1% for Premier customers)
Stamp Duty

To be borne by the BankInterest Charges on Actual Overdrafts

As specified from time to time
Duplicate Statements

Rs.250 per statement

Service Withdrawal Charge

Rs.200 per scrip (Max. Rs.500 per withdrawal) Unauthorised Overdraft 2% over base overdraft
rate Charge for unsuccessful execution of Standing Instruction for payment/Cheque bounce
charge Rs.250

Interest Charges

As specified from time to time

Processing Charges

1.8% of loan amount (Discount for existing customers 0.5 %, PowerVantage customers 0.75 %
and 1% for HSBC Premier customers and 0.8% for NRI customers)
Prepayment Charges

Up to 25% of the loan amount every financial year NIL For amount over 25% of loan amount in
every financial year
2% of amount prepaid
Duplicate Statements

Rs.250 per statement Charge for unsuccessful execution of Standing Instruction for
payment/Cheque bounce charge Rs.250

Personal/Professional Loan
Interest Charges
As specified from time to time
Processing Charges
2% of loan amount (Discount for existing customers 0.5 %, PowerVantage customers 0.75 % and
1 % for Premier customers)
Duplicate Statements
Rs.250 per statement Charge for unsuccessful execution of Standing Instruction for
payment/Cheque bounce charge Rs.250
Photocopies of Cheques
For a period less than 12 months old Rs.100 For a period more than 12 months old Rs.100
Returned Cheques

Cheques drawn on us returned due to lack of funds Rs.150 per cheque of up to Rs.100,000.
Unauthorised overdraft rate for a day (min. Rs.200) for amounts above Rs.100,000 Inward
returned cheque Rs.25 per cheque Stop Payment Instructions Rs.100 per instruction
Issuing Balance Certificates
For a date less than 2 months Rs.100 per certificate For a date more than 2 months Rs.100 per
certificate
Overseas Fax Rs.200 per page
Overseas Courier Rs.500
Out-of-pocket expenses for various services will be recovered as applicable for all charges unless
specified.
The rates, commissions and charges in this tariff are not exhaustive and are subject to change
without notice. This is an abridged version. If you require a service for which a charge/fee is not
outlined here,
CHECKLIST

Documents required for Home Loans (Residents):

Serial No.
Documents
Salaried Individuals
Self Employed
Partnership / Proprietors
1. Latest salary slip showing statutory deductions
2. Latest Form 16 (TDS Certificate from employer)
3. Proof of age (voter's identity card / valid driving licence / passport / school leaving certificate)
4. Proof of residence/office (tel / electricity bill / passport / ration card)
5. Bank statements for last 6 months
6. Computation of income for last 2 years certified by a CA

7. P & L A/c & Balance Sheet for last 2 years certified by a CA

8. Copies of I.T. returns for the last 2 years
9. Partnership deed
10. Letter of Authority
11. Memorandum & Articles of Association
12. Board resolution signed by directors

Documents required (NRIs):

Valid Passport Copy with visa stamp

Latest Work Permit

Employment contract

Six months overseas bank statement

12 months NRE/ NRO account statement

Local co-applicant is mandatory

Extra benefits :
HOME INSURANCE:
If something unfortunate should happen and your home is damaged by fire or even an
earthquake, your greatest asset could become your biggest expense. You need a comprehensive
insurance plan that gives you great value for money and protects your home from unforeseen
risks.

We have put together a choice of coverages to suit your varying requirements. Depending on
whether you are living in a rented apartment, or if you own the property and reside therein, or
even if you simply own the property, you can select a combination of coverages to protect your
home contents or the building itself. Insurance Schemes for the building and home contents
include covers for riots, strikes and malicious terrorism damage cover.
HSBC Insurance Services brings you Home Insurance underwritten by Tata AIG General
Insurance Company Ltd. designed to benefit you and your family in more ways than one.

COMPETITIVE ANALYSIS
Interest rates of home loans in different banks in India:
EMI per lakh (Rs)
Bank

5 years

10 years

15 years

20 years

Fixed Floating Fixed Floating Fixed Floating Fixed

Floating

Bank of Baroda

2,101 2,064

1,322 1,281

1,106 1,060

999

949

Birla Home Finance

2,076 2,064

1,308 1,294

1,075 1,060

NA

949

CanFin Homes

2,101 2,170

1,299 1,327

1,065 1,065

946

946

Citibank

NA

NA

1,308

NA

1,059

NA

949

Corporation Bank

2,049 2,037

1,264 1,250

NA

1,025

NA

912

Dewan Housing Fin

2,150 2,088

1,322 1,308

1,105 1,090

998

982

CITIBANK

2,088 2,076

1,294 1,281

1,075 1,059

966

949

HSBC

NA

NA

NA

1,014

NA

949

HUDCO

2,125 2,112

1,335 1,307

1,121 1,090

NA

982

ICICIBank

2,064 2,064

1,280 1,280

1,059 1,059

949

949

IDBI Bank

NA

2,052

NA

1,267

NA

1,029

NA

916

Indian Overseas Bank

NA

2,088

NA

1,335

NA

1,105

NA

998

LIC Housing Finance

2,112 2,064

1,363 1,267

1,137 1,059

1,066

949

PNB Housing

2,157 2,143

1,357 1,328

1,128 1,096

1,013

979

Standard Chartered

2,100 2,064

1,294 1,208

1,075 1,059

965

949

State Bank of India

2,076 2,064

1,267 1,253

1,044 1,029

932

916

Tata Home Finance*

2,312 2,113

1,475 1,308

1,224 1,060

1,116

949

Union Bank of India

2,088 2,076

1,322 1,308

1,075 1,059

965

949

2,112

2,040

1,253

CITIBANK offer Flexible (Customised) Repayment Schemes, keeping in mind the fact that
each individual has a unique problem requiring unique solutions, CITIBANK has developed
various repayment options like Step Up Repayment Facility, Flexible Loan Instalment and
Balloon Payment Scheme
Pari Passu/ Second Mortgage Arrangements: CITIBANK has a tie-up with a large number of
Public Sector Organizations and banks which enables us to offer loans to your employees with
the flexibility of their spouse also availing a loan from his/her own employer
Safe Document Storage Facilities: CITIBANK has state of art storage facilities, which are theft
and fire proof, at various locations where loan and property documents are stored. In this way
valuable documents are stored safely over the period of the loan and are released almost
immediately after a customer repays his loan

A customer, after availing of a loan can approach CITIBANK anytime thereafter to increase the
Equated Monthly Instalment which will help him repay the loan faster.
Home Conversion Loan offered to its existing customers who are interested in moving to a new
house. Through this scheme customers can apply to have their existing loan transferred towards
the purchase of the new home. Customers may also apply for an additional loan amount for the
purchase of the new house. This gives the customer the option of selling their existing house, if
they wish to, without having to repay their old loan
The fixed rate loan can be converted to floating without any penalty charges. However, you will be
charged 2% if you refinance the loan from another company

Hudco will waive the last 2 EMI payments on the loan if the customer has a perfect repayment
record with no bounced cheques. The loan amount initially taken must exceed Rs. 5 lacs and no
prepayments where to have been made during the tenure of the loan. This is not available for the
Floating rate loan.
There is a discounted start-up fee for Government employees. The Administrating fees stand
reduced from 0.7% to 0.5% only.
Free triple insurance - property cover, earthquake cover and personal accident cover. given free
along with the loan ( not available for the Floating rate loan)
You can prepay the entire loan in any year without any prepayment penalty. Each prepayment
has to be atleast 10% of the outstanding loan. Howvere, the floating rate loan has a 1%
prepayment penalty.
HSBC offers flexible interest rate loans that can be reset every year depending on the
prevailing interest rates at that point. The new interest rate will be applicable for the rolling one
year
Guarantor is required only for loans more than Rs. 10 lacs. Else no guarantor
You can prepay upto 25% of the outstanding loan in any year without paying a penalty. For
amounts over that, 2% penalty levied.
ICICI launches a 30 year tenure home loan, the longest available

ICICI also launches a variable rate loan with a monthly rest basis versus the regular fixed rate
loan that is on an annual rest basis
No guarantors are required for loans upto 20 years in most cases
No pre payment fees for any part payment as long as the loan is not fully retired, else 2% charge
on pre paid amount. You can repay upto 33% of the outstanding loan in any year without paying
penalty.
Free accident death cover for the owner
Special 100% funding for select properties
Higher eligibility for self-employed professionals through segment-specific schemes
LIC Hsg Finance Ltd. will lower quoted interest rate by 0.5% for loans covered by a life
insurance cover that is taken from LIC. The life cover must be taken for a minimum period that
covers the tenure of the Home Loan
SBI offers Home Loans with no start-up costs. Most banks charge as high as 2% as processing
and administrative fees
Prepayment is 2% if the entire loan is pre paid else it is 0%. Avoid this penalty by prepaying upto
99% of your loan if need be
Tata Hsg Finance offers Home Loans upto 90% of the value of the property and 100% in some
new projects.
Prepayment penalty of 0% for upto 4 prepayments in each year. The entire loan can be retired
without incurring any penalty.

INDIAS MOST ADMIRED BANKS:

Ranking

Bank

Citibank

ICICI Banking Corporation

CITIBANK Bank

American Express

HSBC

Standard Chartered Grindlays

State Bank of India

Canara Bank

IDBI Bank

10

Bank of America

11

ABN- AMRO Bank

12

Global Trust Bank

13

Bank of India

14

Corporation Bank

15

Bank of Baroda

16

Deutsche Bank

17

Punjab National Bank

18

Bank of Maharashtra

19

UTI Bank

20

Dena Bank

21

Bank of Punjab

22

Bank of Nova Scotia

23

Credit Lyonnais

24

Andhra Bank

25

Syndicate Bank

26

UCO Bank

27

IndusInd Bank

28

Oriental Bank of Commerce

29

Bank of Madura

30

Karur Vysya Bank

31

Tamilnad Mercantile Bank

32

State Bank of patiala

33

Jammu & Kashmir Bank

THE TOP 10: PUBLIC SECTOR

Ranking

Bank

State Bank of India

Canara Bank

Bank of India

Bank of Baroda

Punjab National Bank

Dena Bank

Bank of Punjab

Andhra Bank

UCO Bank

10

Oriental Bank of Commerce

THE TOP 10: PRIVATE SECTOR

Ranking
1
2
3
4
5
6
7
8
9
10

Bank
ICICI Banking Corporation
HDFC Bank
IDBI Bank
Global Trust Bank
Corporation Bank
Bank of Maharashtra
UTI Bank
Syndicate Bank
IndusInd Bank
Bank of Madura

THE TOP 9: FOREIGN

Ranking
1
2
3
4
5
6
7
8
9

Bank
Citibank
American Express
HSBC
Standard Chartered Grindlays
Bank of America
ABN-AMRO Bank
Deutsche Bank
Bank of Nova Scotia
Credit Lyonnais

Chapter 2
2.1 Literature review
2.2 About the topic

2.1 Literature review

According to Satyanarayana (1987),
housing is an element of material culture, is one such devices to overcome threats against
physical elements or security to lives and serves as an important purpose by making the
provision of shelter. It provides a place for the operation of many human activities Irrespective of

place and time man is using a place of accommodation which is called a house. It helps people to
interact within the family and with the outside world.
As stated in india year Book (1988),
a certain minimum standard housing is essential for healthy and civilized existence. Housing
activity serves to fulfill many of the fundamental objective^.^ Beyer (1965) states that house is a
bulky, durable and permanent product, which has a fixed location being used only in the place
where it is built. Once built, it tends to remain in existence for many years long after it has
served its usefulness. It becomes almost a part of the land.
As stated by Sweta Misra (1996),
the importance of housing was universally recognized from the dawn of history. With the
advancement of knowledge and civilization man became particular about sanitation,
environment, privacy and location of the house. He became conscious of better facilities which
make his life easy and comfortable.
Bahia, K and J Nantel (2000),

The paper suggested an alternative scale for measuring service quality in retail banking. The
study developed a scale called as Banking Service Quality Scale which contained factors like
effectiveness and assurance, access, price, tangibles, service portfolio and reliability. This model
was found to be more reliable than SERVQUAL

Jamal, A., Naser, K.,(2002)

The study examined key drivers of customer satisfaction using 167 customers and it was found
that core and relational performances had impact on customer satisfaction and there was negative
relationship between customer expertise and customer satisfaction
Sureshchandar et al(2002).

The study examined relationship between service quality and customer satisfaction in Indian
banking sector. These were found to be independent but closely related.
Gani A,Mushtaq Bhatt(2003), The study is conducted to do a comparative study of service
quality of commercial banks and its dimensions in commercial banks. SERVQUAL is used and
sample size was 800 customers. The study found out that CITI bank and Standard chartered bank
are good in tangibility and in reliability also they are good. In responsiveness parameter Indian
banks are inferior to foreign banks. In Assurance and empathy Indian banks are inferior.

Navdeep Aggarwal and Mohit Gupta (2003), This study basically finds out the primary
dimensions and sub dimensions of service quality. Informal structured interviews are conducted
with branch managers and academicians to formulate a banking service quality model. The study
found out that service time and personal interactions are very important along with ambience for
service quality
Zhou, L( 2004), The study analysed impact of service quality in banks on customer satisfaction
in chinas retail banking and it was found out that reliability and assurance were the primary
drivers of customer satisfaction. It was also found out that there were significant variations in
expectations and perceptions in customers
Mushtaq M Bhat (2005)- This study finds out service quality parameters in bank through
SERVQUAL and influence of demographic variables . The study was limited to SBI,PNB
,Jammu and Kashmir bank Citi bank and Standard Chartered Grind lays bank. Sample size was
800 and study found out that foreign banks are better than Indian banks. SBI was found to be
relatively poor on reliability and responsiveness. Banks in Delhi were comparatively better in
service quality
Alka Sharma,Varsha Mehta(2005)-The study focuses on service quality of four leading banks
and their comparison.
Joshua A J, V Moli, P. Koshi (2005)- The study evaluated and compared service quality in old
and new banks using sample size of 480. The study found out that customers were satisfied in

reliability, empathy and price and for other parameters the difference between expectations and
perceptions were smaller than public sector banks

2.2 About the topic

OBJECTIVE OF THE STUDY

Main Objective
The basic aim or purpose of this study was to determine the level of customer satisfaction of
existing customers and customers perception of the prospects so as to recommend measures to
bridge the gap between Specific Objectives
customer expectation and customer satisfaction.

To determine the customers perception regarding the quality of services expected from a
good institution/ bank.

To determine the sense of awareness of knowledge regarding Citi Bank and its competitors.

To find out the importance an average customer would give to a particular attribute and what
his satisfaction level was with Citi Bank.

Recommend suitable measures for improving on the quality of services rendered by Citi
Bank Home loans.

CHAPTER 3
RESEARCH METHODOLOGY

METHODOLOGY
A detailed

study was carried out regarding Citi Bank Home loans in

consultation with various Home Lone dealers and financiers for Citi Bank in
the first one week.
On the basis of discussions held with the dealers and a few customers
surveyed at the dealers end, a draft questionnaire was prepared for existing
customers in consultation with my project guide Mr. Sandeep Arora.
The draft questionnaire was first used for pilot testing on a sample size of 15
existing customers. On the basis of the pilot test, suitable changes and
transformations were made to the existing customer questionnaire as well as
the prospect questionnaire. The questionnaire was so designed to gather as
much information as possible from the customer regarding his expectation
and perception to his level of satisfaction with Citi Bank.
Determination of sample size
A sample size of 100 was chosen out of which 75 were existing customers
and 25 were prospects who were interested in getting their car financed in
the near future. This sample of existing customers was chosen at random
from Citi Bank s existing

customer. Database from various stratas

and

zones covering the entire Delhi. For this purpose, the new as well as the old
database has been made use of.

The 75 existing customers

also

over

telephonic

surveyed has been interviewed in person and

conversations.

Their

suggestions,

observations,

complaints and comments have been recorded and presented in this project
in a systematic fashion. The survey was carried out for almost 4 weeks at a
stretch.
Structure of sample surveyed
Total number of customers and prospects surveyed = 100
Customers with prior Citi Bank relationship:
Existing customer with no Citi Bank relation under booking case : 31
Total number of existing customers

: 75

Prospects with existing relation with Citi Bank

: 14

Prospects with no existing relation with Citi Bank

: 11

Total number of prospects

: 25

Existing Citi Bank customer (any product offered by Citi Bank

: 38

Recent customers of Citi Bank Home loans

: 22

Premier, previlege and power vantage customers of Citi Bank

: 25

Prospect retai and corporate clients for Citi Bank Home loans

: 15
______
100

Chapter 4

Analysis and Interpretation

FINDINGS ANALYSIS
1.

Most companies had tie up with Citibank for home loans.

2.

Personal loans were usually internally financed @ 0% maximum amount depending on

cadre.

3.

Auto loans were provided by Citibank.

4.

In maximum companies all Auto, House, Personal Loan were provided by the company
itself based on their salary at 0% or negligible rate.

5.

Usually corporates were not interested in giving corporate guarantee.

6.

Number of employees showed interest individually.

PLA Approved Companies

Wrong Numbers; 16%

Respondents; 28%

No information ; 47%

Companies Rejected ; 9%

Companies Finance Policies

External Finance; 6%
Did not disclose; 11%
Internal Finance; 29%

No Finance Schemes ; 25%

Both Finance Schemes; 6%

Decision depends on head office; 23%

External Financers

Did n't Disclose Name ; 10%

SBI; 7%
HDFC; 39%

LIC; 2%

Tata Finance; 2%

ABN Ambro; 5%
CitiBank; 10%
ICICI; 20% HSBC; 5%

Responses of Companies

Not Interested ; 5%
Should Contact; 38%

Interested ; 20%
Could be Interested; 37%

SOCIAL ANALYSIS
1.

With the change in lifestyle of the people, people are becoming more
aspiration and thus are looking for their own home a sweet as a
necessity item.

2.

Concept of one home per family has become outdated. Now a days
family has more than one home nuclear family trend is coming out and
everybody wants its own house.

3.

People are open to taking loans which is a positive scenario.

TECHNOLOGICAL ANALYSIS
1.

The company needs to be open to an idea of using technology in

positive way Ex. Internet.

2.

The industry is already using concept of on line acceptance of loan

application and new entrant has to keep in mind this consideration.

CHAPTER- 5:
FINDINGS & SUGGESTIONS

Findings and suggestions

1.

Its not the interest rates what whole key to success but how fast a loan is processed for a
customer will make the company successful.

2.

We recommend that company should target at second hand house as very few companies
are into it but they have to act fast.

3.

Website of the company should give more information about loans and its interest and
benefits.

4.

Company should have strategic important tie-ups with other bank.

5.

Various schemes generally make aware the consumer about the company.

6.

Outlet holds the key to success, more branches you have much better it is to access.

7.

The company should work for building brand name of the company as it pays dividends
in long term.

8.

Strongly recommended that company should have fast processing process.

9.

Target the movement segment as it has not being untapped by any player.

10.

We recommend to considered on high volume business than on high profit business

initially.

CHAPTER- 6:
CONCLUSIONS

CONCLUSIONS
We feel that home loan is up coming field and have high potential of growth as consumers
changing life style will push the growth of buying of home. We also recommend that company
should enter into and try to target secondary market or second hand houses it holds the bulk. The
process of processing should be fast. Home loan financing is entirely different from personal
loan. Consumers give more importance to home and give high priority to it.
We strongly feel that company should enter into home loans as it synergies with their business
and can get new customers for their loan also. As the car market is expected to grow at 30% a
year the volume lies their. Secondly in second hand home market the potential is huge and
people are preferring it . Thus company should concentrate in this sector also.

BIBLIOGRAPHY

The various sources from where I collected datas are as follows.

Internet Sites:1. www.hometrade.com

2. www.citibank.com
3. www.hsbc.com
4. www.Citibank.com
5. www.moneycontrol.com

News Papers:1. The Economic Times.

2. Times of India.
3. Business standard.
4. Financial Express.

Magazines:1. Business world.

2. Business Today
3. Outlook.

Banking & Finance.

QUESTIONNAIRE

The purpose of this survey is to find out the needs, want and expectations of
a customer while applying for an Home loan with a bank or nay other
financial institution. Your valuable support is of vital importance to us in
improving the quality of services rendered to our customers leading to
higher satisfaction levels.
We thank you in advance for your participation
Q1.

Name a few institutes / banks that you may approach for financing

your Home loan?

Q2. Have you ever availed of a Home loan? If yes, from which institute /
bank?

Q3. Were you satisfied with the quality of service rendered by the bank?
State reasons?

Q4. Have you ever had any prior relationship with Citibank ? If yes state the
nature lese skip to Q7.

Q5. Tell us more about your Citibank ing experience with regard to the level
of satisfaction that you experienced / have been experiencing?

Q6. How much time (in your opinion) should the following activities normally
take?
From making an application for the loan till you -----------receive

communication

that

the

loan

has

been days

sanctioned.
From sanctioning

-----------days

From completion of documentation / formalities

loan disbursal

till -----------days

From making an application for the loan till

delivery of your Home Loan

the -----------days

Please answer the following questions by indicating your rating on a scale

of 1 to 7 Encircle the appropriate rank.
(7- Very high

4- Medium

1- Very low)

Q7. Please indicate the importance to you of the following attributes?

Rate of interest offered

1 2 3 4 5 6 7

Time taken to acquire loan

1 2 3 4 5 6 7

Ease in documentation

1 2 3 4 5 6 7

Staff knowledge & handling

1 2 3 4 5 6 7

Ease in completing transaction

1 2 3 4 5 6 7

Ongoing account handling

1 2 3 4 5 6 7

Q8.

Rate of level of difficulty you might experience in obtaining the

following information

in order to

complete the documentation

formalities?
Date of birth poof

1 2 3 4 5 6 7

Address proof

1 2 3 4 5 6 7

Signature verification

1 2 3 4 5 6 7

Income proofs

1 2 3 4 5 6 7

Financial statements

1 2 3 4 5 6 7

Statement of Bank Accounts

1 2 3 4 5 6 7

References

1 2 3 4 5 6 7

Post dated cheques

1 2 3 4 5 6 7

Q9. Please indicate the importance to you of the following activities.

Communication from bank about sanction of loan

1 2 3 4 5 6 7

Communication from bank regarding disbursal

1 2 3 4 5 6 7

Q10. In a few words state your expectations form your preferred Home Loan
finance institution?

Q11. Personal details:

Name

Address

:
.

Phone

:.