An evaluation of the contribution of HDFC Ltd to the housing sector in Kerala

Abstract

The present study has been undertaken to examine the operational and financial performance of HDFC, its contribution to the housing sector of Kerala, the personal traits of borrowers and their perception on its loan products and services. The study covers a decade from 1997-98 to 2006-07. Both primary and secondary data were used for the study. The primary data were collected from the borrowers of HDFC belonging to the three zones in Kerala i.e. north, central and south, based on structured interview schedule. The secondary data were collected from annual reports, books and periodicals. The data collected were classified and analysed suitably keeping in view the objectives of the study. On the basis of findings of the study, it is deduced that the role of HDFC must be extended to the rural area of Kerala as the service of HDFC is more in urban areas than the rural areas. The rate of interest changed by HDFC for their loans is higher than those of other institutions like LICHF or commercial banks. Again, HDFC does not consider the repayment capacity of the beneficiaries along with the property mortgaged. For HDFC there is no provision for fixing lower EMI in the initial years when the incomes of the borrowers are lower and increasing the same (EMI) as incomes rise. Regarding the quality of service it is noticed that beneficiaries rate HDFC as moderate compared to other institutions.