HDFC (Housing development finance corporation)

The housing development finance corporation (HDFC) is another notable and premier housing finance organization of government carrying on appreciable work in the area of housing finance. It was established in 1976 and has today become a major channelling institution which directs the public saving and capital finance into house building.

1. GOVERMENT ENGINEERING COLLEGE,BHARUCH NAME – KAPTAN SAGAR R ENROLLMENT NO. – 130140106021 SUB – BUILDING & TOWN PLANNING TOPIC – HDFC (Housing development finance corporation)

2. The housing development finance corporation (HDFC) is another notable and premier housing finance organization of government carrying on appreciable work in the area of housing finance. It was established in 1976 and has today become a major channelling institution which directs the public saving and capital finance into house building.

3. It has turned the concept of housing finance into a profitable, professionally managed, world class enterprise this is achieved by HDFC through lending schemes and generation of money by borrowing from the public through issues, insurance premiums, bank interests and so on. The HDFC has enabled more and more people to purchase houses by offering them financial and institutional support.

4. The HDFC provides loans for resale of properties in a good condition, land purchase, home and non-residential premises loans for professionals, home improvement, home extension, home equality, etc. The recovery percentage of 99 of the HDFC is very impressive. it lays emphasis on credit quality, credit appraisal and reorganization of the repaying capacity of the borrowers. The major emphasis is also laid on the consumer services. It has computerized its loan transactions.

5. The HDFC assists the client in finding properties which match their budgets and location preferences, it has also established a network pf collection centres at various banks.

6. The HDFC has assisted over 1.9 million families to own a home through loans over Rs. 370 billions up to the end of year 2003. this was supported by its strong distribution network of over 178 office across the country securing customers in over 2400 cities or towns. It has over 46000 deposit agents with a deposit over Rs. 85 billion from over 1.2 million depositors. It has earned profit of Rs. 204.62 crore after deducting tax up to June 2004, which is about 22%more than the previous year.

7. The procedure for getting loan from the HDFC can be briefly described as follows: First either download the application form from HDFC loan web site or get it by email or normal mail or collect it from any of the nearest HDFC offices. 2) Fill up the application form and submit it along with the following supporting documents. ( i ) Allotment letter of co-operative society or association of apartment owners.

8. (ii) Copy of approved drawings of proposed construction or purchase. (iii) Agreement for sale or sale deed or detailed cost estimate from architect or engineer for the property under consideration. (iv) The latest salary slip or salary certificate showing all deduction for a salaried employee. (v) Application processing fees which is 0.5% of the loan amount. (vi) A passport size photograph.

9. The application will be considered and scrutinized by HDFC. On the approval of loan, a loan offer will be made. On the acceptance of the offer, an administrative fee for the approval of loan is to be paid to HDFC.

10. The two primary financial institution, HUDCO and HDFC have helped to solve the resources problem in the housing sector. They have also paved the way for other such local organisations and development authorities to take up the housing programmes and thus assist the government in this sphere.

11. Thank you