“MARKET MAPPING FOR MORTGAGE/HOME FINANCE”

Internship Type- On The Job Chirag BansalPGSF 1516

TABLE OF CONTENTS1. Industry Overview 2. Company Overview3. Job Description4. Analysis of Job Done5. Learning Outcomes6. Findings & Suggestions

INDUSTRY OVERVIEW• NBFC has grown from 10.7% to 14.3% in2014. • NBFCs are having several benefits over banks like they focus on niche segment, and have

expertise knowledge in the specific asset classes, and which provides the funding needs of economy.

• NBFC are lacking banking license yet they are able to provide most of the banking services offered by banks.

• They fills the gaps in the availability of loans & advances service which is not possible in some areas. NBFC has 12.3% assets of the total financial system.

• The factors that makes the difference between an NBFC and Bank are as follows: NBFCs cannot collects & deposits like banks NBFCs are unable to issue checks drawn on themselves NBFCs are unable to issue Demand Drafts like banksSource: http://simconblog.wordpress.com

COMPANY OVERVIEW• India’s one of the oldest and most respected business houses with group turnover of over $ 40

billion. Aditya Birla Group (ABG) is India’s first true multinational with 107 state-of-the-art units in 25 countries. ABG has more than 130,000 employees which belong to over 42 different nationalities.

• Aditya Birla Housing Finance Limited (ABHFL) is a subsidiary of the Aditya Birla Financial Services is India’s most reputed NBFC. It came into existence in 3rd quarter of 2015 the company is also certified ISO 9001:2008.

• ABHFL offers a lending solution for the commercial, real estate& mortgages, infrastructure project& structured finance.• Aditya Birla Housing Finance Ltd till June, 2016 has disbursed ₹2,000 core• The Real Estate and Mortgage solutions comprises – Home Loans Plot and Home Construction Lease Rental Discounting Loan Against PropertySource: http://adityabirlahomeloans.com/Pages/Home.aspx

JOB DESCRIPTION• Catchment mapping of the assigned geography in terms of real estate development,

prices, competitors, developers, inventory / stock, occupancy, funding and distinctive features.

• Create database of builder projects and sites in the catchment.• To maintain a tracker of the same and provide suggestions for business sourcing in

the project report.• Had meeting with Direct Sales Agents to make them understand the different benefits

of being empaneled with us.

ANALYSIS OF JOB DONE18 Project sites visited Files Received

• Because of certain policies of ABHFL we were unable to crackdown Business.

• ABHFL received more files from Greater Noida and extension due to Affordable prices and High Growth in the area

 

Gr Noida an-dextension; 7

Ghaziabad; 4

Gr Noida and extension; 10

Ghaziabad; 7

Noida; 1

Services satisfaction of Direct Sales Agent

satisfied32%

Not satisfied68%

Services

Entity Name

Square Capital Advisory Services Pvt. Ltd.

NCR Management Solutions Pvt. Ltd.

Abhishek Pradhan Solutionns

K & S Financial Services Pvt. Ltd.

Max Wealth

Fidentia Business Consulting

Ashutosh Financial Services

Chase Strategic Advisory

MD Jahangeer Alam

Amount of portfolio handling by DSAs

Below 2crore27%

2 Cr.-5 Cr.63%

23% above 5 cr

portfolio

RoI30%

Commission57%

Brand13%

feature preference

Feature preference by DSAs

MAJOR COMPETITOR’S

LEARNING OUTCOMESKey Learning’s• Had a good on-field experience and understood market dynamics of the Housing

Finance.• Developed and enhanced skills in building relationships and distribution of Home loan

solutions.• Another key learning is about knowing the different bottlenecks that can affect

sales..• Also learned the process of Loan Sanctioning.Outcomes• Sales pitch• Domain Knowledge

FINDINGS & SUGGESTIONSFindings :• Basic Login Problems : Due to longer TAT credit team again

and again ask for documents which in return irritate the customer and they often rises the issue of signature Mismatch.

• Sanction problems: Correct sanction letter is not generated at one time.

• Service Quality: Approved Project Funding(APF) takes more time as compared to other NBFCs and Turn Around Time is also high.

• Limited Workforce: Delhi-NCR is a Big Market and to cover this area a Sales Manager requires at least 7-8 members in his team.

Suggestions :• Immediate cut in Rate of Interest to 9.40% in order to compete

with other Banks and NBFC’s and no discrimination between the Rate of Interest of Salaried and Self Employed Applicants. 

• Easing down its policy and Improvement in Relations with Builders by improving quality of services like TAT, APF approval and Special Payment Schemes. 

• Increase its Brand Awareness by done by advertising their products through various channels, such as print media, advertisements, digital marketing, Radio, etc.