25-07-2012, 03:56 PM
ICICI HOME LOANS
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INTRODUCTION
Housing is a primary human need next in importance only to food and clothing. A first priority for a youngster who begins life is therefore to plan for a house. This takes precedence over other household expenditure and creature needs. Housing, however, is a major expenditure and cannot be funded out of a family's normal monthly income or savings. The prospective homeowner must look for a loan substantial in size and so structured that he can repay it over a longer period of time, in many cases almost one's entire working life.
Loan is offered to a borrower to purchase or build a new house on the basis of his/her eligibility and the bank's lending rules. One of the important basic human needs is shelter. House is the ultimate dream of every middle class family. Government gave encouragement for house finance subsidiaries by offering number of tax concessions to individuals. With the overall encouragement given to this sector, a number of players entered in housing finance.
• OBJECTIVE OF THE STUDY:
The following are the objective of the present study:
1. The main objective of doing this project is to study the corporate culture
2. To analyze Indian home loan market and its growing trends
3. To analyze various methods of operating a home loan
4. To gain knowledge about various home loan products
5. To know various rates available while providing home loan.
• Data and Methodology:
For the purpose of the present study both primary and
Secondary data were used.
Primary data collected from bank visits, interviewing with
staff etc. secondary data collected from books, websites and newspaper.
• LIMITATION OF THE STUDY:
The present study has got all the limitations of case study method of data collection.
A THEORETICAL VIEW- HOME LOAN
The section 5 (b) of the Banking Regulation Act 1949 defines Banking as," Accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft or otherwise."
A "home loan" is a credit to a consumer for the purchase or transformation of the private immovable property he owns or aims to acquire secured either by a mortgage on immovable property or by a surety commonly used in a Member State for that purpose."
Home loans for construction of new house / flat, purchase of old house/ flat, etc:
Initially, lenders approved a home loan for family/own residence only. After gaining experience and more importantly to be competitive, lenders now approve loans even when the applicant has more than one house or flat/apartment. Today there is no general restriction on the number of houses owned by an individual. The only stipulation is that the home loan funds should not be used for commercial purposes.
2) Home extension loan:
These loans are given for expanding or extending an existing home. These are some of the instances for which you could take an Extension Loan.
• To construct an additional room or floor by getting additional FSI granted.
• Using grills or sliding windows to enclose the balcony.
• Construction of a garden or garage in the building vicinity.