PRESENTATION

ON

CONSUMER DURABLE LOAN

PRESENTED BY-
RAJESH RAM
 HDFC BANK

HDFC Bank Limited is an Indian banking

and financial services company headquartered
in Mumbai, Maharashtra Incorporated in 1994, it is
the fifth largest bank in India as measured by assets. It
is the largest private sector bank in India by market
capitalization as of February 2014.

HDFC was ranked 45th on the list of top 50 Banks in

the world in terms of their market capitalization.
 In Sep 2013 the HDFC Bank launched new product in
the market that is……
(Consumer Durable Loan)


CONSUMER DURABLE LOAN

DEFINITION

Consumer Durable loan is an installment loan to

Individual for a specified sum of money towards
the purchase of a consumer durables products.
 INRODUCTION

Consumer Durable loan* is a finance option for

purchase of household items like Washing Machines,
Refrigerators, AC, Color TV, LCD, Microwaves etc.
Consumer durables are a category
of consumer products that do not have to be
purchased frequently because they are made to last
for an than three years). They are also
called durable extended period of time (typically
more goods or durables.
WHY HDFC BANK CONSUMER
DURABLE LOAN

 BENEFITS  FEATURES
 Low EMI because of  Up to 100% finance
Extended tenure of Up to
 36 months Tenure
36 months
 Loan amount up to 15 lacs
 Less Burden – Enjoy up to
100% finance with zero  Nominal processing fees
advance EMI payments  No blocking of credit cards
 Great deals with complete limits
transparency  Minimal margin money
PRODUCT CATEGORIES TO
CHOOSE FROM
 LED Televisions
 Refrigerators
 Washing Machine
 Laptops and Ultra books
 Air conditioners
 High End Audio and Home Theater Systems
 Recliners
 Tablets
 Modular Kitchen
 High End Camera and Lenses
 Mobile Phones
WHICH ALL CITIES THE HDFC
BANK CONSUMER DURABLE
LOAN IS AVAILABLE
 Mumbai,
 Delhi,
 Bangalore,
 Chennai,
 Pune,
 Hyderabad,
 Jaipur,
 Chandigarh,
 Cochin,
 Ahmedabad and
 Kolkata
DURABLE LOAN INTEREST

Salaried - 16.00% to 20%

Self-employed businessman
Rack interest rate - 18.00% to 22.00%

Self-employed profession -
14.50 to 18.00%
 PREPAYMENT CHARGES

 PREPAYMENT  No pre-payment
permitted until
repayment of 6 EMIs

 PRE-PAYMENT
CHARGES  07-24 Months - 4% of
Principal Outstanding
 25-36 Months - 3% of
Principal Outstanding
 >36 Months - 2% of
Principal Outstanding
 HDFC BANK CONSUMER
DURABLE LOAN ELIGIBILITY

 CONDITION  CREDIT CRITERIA

 Minimum Age  Salaried - Min - 21 yrs

 Self Emp. – Min. – 26yrs

 Maximum Age ( At the time  Salaried – Max – 60yrs

of loan closure )
 Self emp. – Max – 65 yrs

 Minimum Income
 HDFC Bank Salary account
Customers – 15000*
 Others - Rs. 18000
 Tenure  12 – 36 months (Depending on
Product Type)

 Rs.25000
 Min Loan amount

 Durables : Rs. 5,00,000 LSP - Rs.

 Maximum Loan amount
15,00,000
 HDFC BANK CONSUMER
LOAN DOCUMENTATION

 SALARIED  SELF EMPLOYED

 KYC - ( Know your  KYC - ( Know your

customer ) customer )

 Latest 2 month salary slip  Latest 2 years Income Tax

Return

 Latest 3 months bank

statement  Latest 6 months bank
statement
 SCOPE IN THE CONSUMER
DURABLE FINANCE

The scope of the Indian retail market is immense for this sector is
poised for the highest growth in the next 5 years. The India retail
industry contributes 10% of the countries GDP and its current growth
rate is 8.5%.

The organized retailing sector in India is only 3% and is expected to

rise to 25- 30% by the year 2010.

This proves that there is a tremendous scope for growth in the Indian
retail market.

The scope of the Indian retail market have been seen by many retail
giants and thats the reason that many new players are entering the
India retail industry.
 CONCLUSION

Consumer finance is the segment of the financial services industry that lends
money to individual consumers. Although banks and credit unions are
among the lenders in the consumer finance industry, alternative lenders
include finance companies, pay day loan services and establishments
specializing in lending to borrowers with poor credit.

Interest rates
Interest rates are an important aspect of consumer finance. Consumers may
do themselves a great service by understanding the effect of the interest rate
charged on the amount of their loan.

Credit Rating
Credit ratings impact a consumer's ability to obtain favorable consumer
financing. Generally, a consumer's individual credit rating may serve as a
way to gauge the risk of a consumer defaulting on the loan.
Agencies
Three primary agencies--Experian, Equifax and TransUnion--provide
lenders with credit information about individual consumers.

Fraud
Consumer finance products may not all be in the best interest of the
consumer. Consumers with poor credit or limited financing options
may be especially susceptible to potentially bad financing services.
THANK YOU