Project Report

(Project Semester IV Jan-June 2023)

“A Descriptive Study of Loans”
(Home Loan)

Submitted By:
Vishal Choudhary
21MBAN013

Under the Guidance of

Faculty Internship Guide  Industry Guide

Name: Dr. Rashmi Sharma Name: Arpit Saxena
Designation: Assistant Professor Designation: HR Manager

Jaipur School Of Business Studies

JECRC UNIVERSITY, JAIPUR
June 2023

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 DECLARATION

I hereby declare that the work reported in this thesis entitled This is to certify that the present
InternshipReport entitled “A Descriptive Study of Loans(Home Loan)” resulted from the internship
project undertaken at “Piramal Capital and Housing Finance Limited” during the period06th March
2023 to 10th JULY 2023” is original and has not been previously submitted anywhere else.

Name: Abhishek Upadhyay

Enrolment No.: 21MBAn093

Jaipur School of Business Studies

JECRC University, Jaipur

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 CERTIFICATE

This is to certify that the Internship Report entitled “A Descriptive Study of Loan(Home Loan)with
Reference to Piramal Capital and Housing Finance Limited” by “Abhishek Upadhyay” in his original
work. He has worked under my guidance for the required period. This dissertation fulfills the requirement of
the ordinance relating to Internship Training. No part of this report has ever been published by any other
university or institution for any purpose whatsoever.

We also certify that he complied with the Plagiarism Guidelines of the University.

Signature:

Dr. Rashmi Sharma

Assistant Professor

JECRC University

Date:

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 ACKNOWLEDGMENT

I, Mr. Abhishek Upadhyay, hereby express my gratitude for the tremendous support and enthusiasm that
I received throughout the course of this project. I would like to acknowledge the guidance of Dr. Rashmi
Sharma, Dean of Jaipur School of Business Dr. Renu Pareek, and Dr. Ritu Dixit HOD of MBA at
JECRC University, Jaipur. I thank them for enriching our experience with this opportunity.

I deliver my sincere gratitude to Dr. Rashmi Sharma. Her motivating demeanor paved the course of my
research and facilitated the facile accomplishment of my goal.

It is my pleasure to take this opportunity to express my sincere gratitude to “Piramal Capital and
Housing Finance Limited” for my training. I am extremely thankful to all the members of the
organization who have contributed to my work. I make use of all this space to thank all of them in my
humble acknowledgment.

I am highly obliged to Mr. Arpit Saxena, HR Manager of the Piramal Capital and Housing Finance
Limited for his approval of my training Piramal Capital and Housing Finance Limited.

I am grateful to Mr.Arpit Saxena, HR Manager for sparing his valuable time to make me understand all
the techniques and impart maximum knowledge, and tirelessly helped me and guided me from the
beginning till the end of the training session.

I also thank Mr. Trilok Chand Sen –Cluster Manager (Home Loan), Mr. Ashok Gautam – Sales
Manager Home Loan and all the members of Piramal Capital and Housing Finance Limited for
providing me friendly atmosphere during my training period.

Last but not least I with due respect pay my regards to my Parents and almighty God who has been the
source of motivation, strength, and support, which led me to attain success.

Abhishek Upadhyay
MBA STUDENT
JECRC UNIVERSITY

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 TABLE OF CONTENT
CHAPTER CONTENT PAGE
NO NO

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 CHAPTER 1

INTRODUCTION

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INTRODUCTION
1.1. INTRODUCTION ABOUT THE PROJECT

The project is mainly done for the purpose to gain practical knowledge to the students and gain
knowledge and also work experience on a selected topic and provides an idea of how the theoretical
knowledge should be applied in the practical working field. It also helps to boost your Resume on work
experience and understand the organization’s structure.
The intern is relied upon to give data on the organization in which he or she worked portrayals of the
particular work finished and particular work finished and particular games additionally recreational
angles relevant to the assigned assignments. The report likewise gives data on your relational abilities and
ought to show basic speculation aptitudes. Since a net worth piece of your experience ought to identify
with either games or diversion, that ought to be exhibited in your report.
Piramal Capital and Housing Finance Limited which comes under the NBFC’s provides financial facility
to its customer with its various type of product and services. Many customers were attracted by these
types of financial companies which could provide very high-interestrates on the deposit comparing to the
other bank or financial institutions.
The aim of the company is to provide housing finance and non-housing loan at a lesser rate of interest.
The expected outcome of the company is to gain more customersby providing good customer service and
better customer satisfaction.

1. 2 INDUSTRY AND COMPANY PROFILE

INDUSTRY PROFILE
Non-bank financial institutions (NBFCs) are financial institutions that provide different banking services,
but NBFCs do not have a banking license. They are not allowed to attract deposits from the public.
The NFE was established in 1956. Companies registered in companies dealing with loans and advances,
acquiring stocks, shares, etc. NBFC operations are managed by the Indian Reserve Bank (RBI) in
accordance with India's Bank of India 1934 Act.
NBFCs are important and fast emerging segment in the Indian financial system. It is an group of
institution which performing the financial activities in a different way
The approaches to direct the capacities may identify with the managing an account.
We can say that the NBFC’S refers to the company with special reference to the financial assistance and
perform the basic activity of collection of deposits from its customers with its own norms and criteria to
be fulfilled according to the RBI act of 1997.
These kinds of firms are increasing in number as well as their growth rate is at the peak these days. As the
rate of return on deposits of these institutions are comparatively higher, more customers approach them. It

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takes the part in various activities such as leasing equipment, home loans, consumer-based finance
activities, and so on where the firms meet the higher amount of difference between the cost of demand
and supply.
There isa different arrangementfor these organizations and they are the organizations thatgive the
advance, Raise the venture firms, Leasing firms thatincorporate enlisting exercises, shared assets, and
organizations in regards to home advance arrangements for business and private purposes.
How NBFCs are different from Bank:
• Provide banking services to persons without banking licenses.
• NBFCs can not demand deposits.
• It is not part of the payment and settlement system
• NBFCs are not required to retain backup risks (CRR, SLR, etc.)
Advantages of NBFCs:
• Financial decisions are taken quickly.
• Fewer rules and regulations.
• Transaction value is low.
• Compare the interest rates of other banks with high-interest rates.
• Targeted customer service and fast service.
Role of NBFCs:
As Recognized by the RBI the specific roles of Non-banking financial companies are:

1. Substantially generate Employment.

2. Increase wealth creation.

3. Develop the sectors like Transport and Infrastructure.

4. Base economic development.

5. Supplement to bank credit in rural segments.

Role of NBFCs in Economic Development:

1. Converts the savings into Investment.

2. Helps to increase the capital stock of the Company.

3. Creation of employment opportunities.

4. Providing Long-term credit.

5. Developing financial markets.

6. Attracting foreign customers.

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 7. It breaks the circle of poverty by serving as a government instrument.

RBI has come up with a new set of rules and regulations to secure customers with their deposits at
financial institutions. If the firms are one among the NBFCs, they need to be divided into two main
clauses; they are Loan and Investing firms as well as the finance company regarding equipment leasing
and hire purchase activities.

Types of NBFCs
a) Asset Finance Company(AFC): The main business of these companies is to finance the assets
such as machines, automobiles, generators, and material equipment.

b) Investment Company (IC): The main business of these companies is to deal in securities.

c) Loan Companies (LC):The main business of such companies is to make loans and advances (not
for assets but for other purposes such as working capital finance etc…

d) The Infrastructure Finance Company:Financial institution engaged in the principal business of

providing infrastructure loans to companies

1.3 COMPANY PROFILE

PIRAMAL FINANCE: Piramal Finance Limited (PFL) is a subsidiary of Piramal Enterprises Limited
(PEL), one of India's leading conglomerates. PFL was established in 2012 as Piramal Capital, with a
focus on providing financing solutions to various sectors, including real estate, infrastructure, and
renewable energy.

In 2014, PFL acquired Indiareit Fund Advisors, a leading private equity real estate fund manager in India.
This acquisition enabled PFL to expand its presence in the real estate sector and strengthen its investment
management capabilities.

In 2015, PFL acquired a stake in Shriram City Union Finance, a leading non-banking financial company
in India. This strategic investment enabled PFL to enter the retail finance market and diversify its
portfolio.

In 2017, PFL merged with its subsidiary, Piramal Housing Finance Limited, to form Piramal Capital and
Housing Finance Limited (PCHFL). The merger enabled PCHFL to provide a comprehensive range of
financial services, including wholesale and retail funding, investment management, and advisory services.

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Today, PFL is a leading provider of financial solutions to various sectors in India, including real estate,
infrastructure, and healthcare. The company offers a range of products and services, such as project
financing, structured financing, mezzanine financing, and equity investments.

Overall, Piramal Finance has played a significant role in the growth and development of various sectors in
India by providing innovative financing solutions and supporting entrepreneurs and businesses in their
growth journey.

PIRAMAL CAPITAL AND HOUSING FINANCE LIMITED:Piramal Capital & Housing Finance
Ltd.(Piramal Finance), a wholly owned subsidiary of Piramal Enterprises Limited (the flagship
company of Piramal Group), is registered as a housing finance company with National Housing Bank
(NHB) and engaged in various financial services businesses. It provides both wholesale and retail funding
opportunities across sectors. In real estate, the platform provides housing finance and other financing
solutions across the entire capital stack ranging from early-stage private equity, structured debt, senior
secured debt, construction finance, and flexi lease rental discounting. Hospitality sector financing is a
recent foray of Piramal Finance. Here we are providing financing solutions to hotels that will be operated
by branded players in established and emerging markets. The wholesale business in the non-real estate
sector includes separate verticals - Corporate Finance Group (CFG) and Emerging Corporate Lending
(ECL). CFG provides customized funding solutions to companies across sectors such as infrastructure,
renewable energy, roads, industrials, auto components, etc. while ECL focuses on lending to Small and
Medium Enterprises (SMEs).

The introduction of retail lending was a natural progression attributed to the size, scale, and growth of the
company’s financial services business. Housing Finance’s strength lies in its rich experience and its
networkin the wholesale lending and construction space.Piramal Finance through its group companies
provides customized strategies for institutional and retail investors such as Mumbai Redevelopment Fund
focused on slum rehabilitation and Apartment Fund focused on bulk buying individual units (Through
Piramal Fund Management) and strategic partnerships with leading global pension funds such as CPPIB,
APG, and Ivanhoe Cambridge.

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Company Name PIRAMAL CAPITAL AND HOUSING FINANCE LIMITED

Founder AJAY PIRAMAL (Chairman)

Founded 20TH September 2017

Head Quarters Mumbai

Area Served India

Type of Company Public Limited Company

Key People Swathi Piramal, Nandhini Piramal, Anand Piramal

1.4 History

DHFL was established and incorporated by Rajesh Kumar Wadhawan on 11 April 1984. The name of the
company was changed to Dewan Housing Development Finance Ltd. and later to Dewan Housing
Finance Corporation.

In 2010, DHFL acquired the Deutsche Postbank Home Finance unit for ₹1079 crores. On 18 December
2013, DHFL acquired 74% stake in DHFL Pramerica Life Insurance Company Ltd.

On 29 January 2019, Cobrapost, an Indian investigative journalist group, published an exposé of DHFL
for using various shell corporations to siphon more than ₹ 31,000 crores of public money for the personal
gains of the DHFL's primary stakeholders: Kapil Wadhawan, Aruna Wadhawan and Dheeraj
Wadhawan. In the same article, Cobrapost also raised allegations of political donations worth crores of
rupees, in violation of Section 182 of the Companies Act, 2013 for political donations.DHFL filed a
response with the Bombay Stock Exchange saying the allegations raised by Cobrapost were untrue.
DHFL also rebutted these allegations in a hosted investors/analysts conference and clarified that the ₹
31,000 crore loans mentioned in the allegation consist of its project loan portfolio. Also, the company
tried to clarify that the advances commented on by Cobrapost should be ₹ 21,000 Crores and not ₹
31,000 crores. Following the Cobrapost allegations, Indian credit rating agencies reaffirmed their high
safety rating for the financial instruments issued by DHFL

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Even after the emergence of serious allegations of misconduct against its business, the Indian credit rating
agencies continued to issue high safety ratings for the DHFL financial products, but, on 6 June 2019,
DHFL defaulted on its debt repayment, resulting in a debt rating downgrade, immediately wiping out
16% of the value from its stock price. At the time, the fall in DHFL stock price was an all-year low. This
rapid decline in stock price resulted in a loss of investor confidence.On 20 November 2019, the Reserve
Bank of India removed the board of directors of the company citing corporate governance failure and the
company's defaulted payment obligations.

1.5 VISION, MISSION

VISION: “ To be the most preferred financial Service partner for all stakeholders by embodying the
value, knowledge, action, care, and impact”.

MISSION: “Our ambition is to offer the full spectrum of financial service across retail and wholesale
verticals”.

1.6 PRODUCT

Piramal Capital and Housing Finance Limited (PCHFL) is a non-banking financial company (NBFC) in
India that offers a range of financial products and services, including:

Home Loans

A home loan is a type of secured loan that is used to finance the purchase of a home or property. The loan
is secured by the property itself, which means that if the borrower fails to make payments, the lender can
seize the property to recover the money.

Home loans typically have lower interest rates compared to other types of loans because the property acts
as collateral. The loan amount, interest rate, and repayment term are determined by the lender based on
the borrower's credit history, income, and other factors.

There are several types of home loans available, including fixed-rate mortgages, adjustable-rate
mortgages, and government-backed loans such as FHA loans and VA loans. Each type of loan has its own
advantages and disadvantages, and it's important to carefully consider the options before choosing a loan.

Taking out a home loan is a major financial decision, and it's important to carefully consider whether it is
the right option for your situation. Before applying for a home loan, you should have a good
understanding of your financial situation, including your income, expenses, and credit score.

SME Loans
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PCHFL offers loans to small and medium-sized enterprises (SMEs) for their various business needs, such
as working capital, machinery purchase, and business expansion.

This loan category is broadly divided into 3 sub-categories:

1. Unsecured Business Loan

 An unsecured business loan is a type of loan that does not require collateral or security to be
pledged by the borrower. This means that the lender does not require any asset to be pledged as
collateral against the loan amount. Instead, the loan is granted solely based on the borrower's
creditworthiness and ability to repay the loan.
 Unsecured business loans are usually offered by banks, non-banking financial companies
(NBFCs), and other financial institutions. The loan amount, interest rate, and repayment period are
determined based on the borrower's credit score, income, and other factors.
 Since unsecured business loans do not require any collateral, they are considered riskier by the
lenders, and therefore, they usually come with higher interest rates compared to secured business
loans. However, they are a popular choice among small businesses that do not have any assets to
pledge as collateral.
 It is important to note that unsecured business loans may have stricter eligibility criteria and
documentation requirements compared to secured business loans. Therefore, it is essential to
thoroughly research and compare different loan options before choosing the most suitable one for
your business.

2. Secured Business Loan

 A secured business loan is a type of loan that requires the borrower to pledge collateral or security
against the loan amount. The collateral can be any asset of value such as property, machinery,
inventory, or accounts receivable. The lender holds the right to seize the collateral in case of
default on the loan.
 Secured business loans are usually offered by banks, non-banking financial companies (NBFCs),
and other financial institutions. The loan amount, interest rate, and repayment period are
determined based on the value of the collateral, the borrower's creditworthiness, and the purpose
of the loan.
 Since secured business loans require collateral, they are considered less risky by the lenders, and
therefore, they usually come with lower interest rates compared to unsecured business loans. They
are a popular choice among businesses that have valuable assets to pledge as collateral.
 It is important to note that secured business loans may take longer to process and disburse, as the
lender will need to evaluate the collateral to determine its value. Additionally, there is always the
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 risk of losing the collateral in case of default on the loan. Therefore, it is essential to carefully
evaluate the risks and benefits before choosing a secured business loan.

3. Loan Against Property

 A loan against property (LAP) is a type of secured loan where a borrower pledges a property
(residential or commercial) as collateral to obtain a loan from a bank or financial institution. The
loan amount is typically a percentage of the market value of the property pledged as collateral.
 The interest rates on loan against property are generally lower than unsecured loans, as they are
backed by collateral. The borrower can use the loan for various purposes such as business
expansion, debt consolidation, education, medical emergencies, and others.
 The amount of loan that can be availed depends on the value of the property, the borrower's
income, and repayment capacity. The loan tenure can range from 0-15 years, and the borrower
needs to pay equated monthly installments (EMIs) until the loan is repaid in full.
 It is important to note that failure to repay the loan can result in the lender seizing the pledged
property to recover the outstanding dues. Therefore, it is important to carefully evaluate the risks
and benefits of a loan against property before taking one. Additionally, it is essential to compare
loan offers from different lenders to find the most suitable option based on interest rates, loan
tenure, and other terms and conditions.

Personal loan
A personal loan is a type of unsecured loan that is typically taken out by an individual to finance various
personal expenses, such as home renovation, debt consolidation, medical expenses, or even a vacation.
Unlike secured loans, such as a mortgage or car loan, a personal loan is not backed by collateral. This
means that if the borrower fails to repay the loan, the lender cannot seize any specific asset as repayment.

Personal loans typically have fixed interest rates and repayment terms, with the borrower making regular
payments (usually monthly) until the loan is fully repaid. The loan amount, interest rate, and repayment
term are determined by the lender based on the borrower's credit history, income, and other factors.

It's important to note that taking out a personal loan involves taking on debt, and it's important to
carefully consider whether it is the best option for your financial situation before applying.

 Benefits of a Personal Loan from Piramal Finance:

Some of the benefits of availing of a personal loan from Piramal Finance include
1. Competitive interest rates,

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 2. Quick sanction and disbursal,
3. Flexible repayment tenure.

 Pre-owned Car Loan

A pre-owned car loan, also known as a used car loan, is an unsecured loan that enables you to buy a well-
maintained second-hand car without any hassle. Pre-owned car loans are disbursed at reasonable and
competitive interest rates, and their repayment duration can be as long as seven years. Every salaried and
self-employed individual can opt for a used car loan. Whether salaried or self-employed, you’ll enjoy the
benefit of repaying the loan in EMIs over the loan term. There’s minimal documentation required for this
loan application process.
Benefits of choosing a Pre-owned Car Loan:

The various benefits of choosing a pre-owned car loan vary from lender to lender. However, the most
common benefits include:
1. Quick sanction and disbursal
2. Freedom to choose from a wide range of auto-dealers
3. Coverage for multiple cars, including SUVs
4. Loan available for cars valued up to INR 15 lacs
5. Lower rate of interest than other types of unsecured loans
6. Customized repayment schedule as per your convenience
7. Maximum repayment flexibility
8. Minimal documentation
9. Easy car buying process

1.7 SWOT ANALYSIS

STRENGTH
 Strong parentage of Piramal Enterprises Limited.

 Strong and Experienced management team.

 Effective and strong channel of promotion.

 Good relationship with Customers.

 The customized service to its customers.

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 Improved technology and analytics to drive towards a quicker turnaround time in both
underwriting and disbursement.

WEAKNESS
 Sectoral and customer concentration and relatively unseasoned portfolio.

 The rate of interest is High.

 The company does not act as a bank order to increase the portfolio.

 The company is very strict compared to others it follows rules and regulations with the company’s
norms.
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OPPORTUNITIES
 Piramal capital and housing finance have good assets quality over the NBFCs.

 PCHFL hasa better and faster processing service which provides faster loan service to the
customer.

 Accepting the lower CIBIL score and balance risk by charging a high rate of interest.

 The requirement forpaperwork is Less.

THREATS
 Modernization in government banks gives competition to NBFCs and private banks.

 Investment of foreign banks in the Indian market.

 Low rate of interest and low rate of the fee charged by the banks.

 Changes in the regulation and company norms due to recession.

 NBFCs and new banks are increasing in India.

1.8 FUTURE GROWTH PROSPECTS

 PCHFL is to be on creating one of India's largest financial services businesses.

 PCHFL is planning to adopt a customized and built-to-suit technology platform that spans the
entire whole finance business to avoid data duplication and reduce paperwork.

 PCHFL’s aim is to offer financial services for both the retail and wholesale sectors.
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 The company is planning to expand its business across India.

 PCHFL is trying to provide customized loan facilities to its Customer.

1.9 FINANCIAL STATEMENT

Financial Statement 2022 (unaudited)

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Financial Statement 2020 & 2021

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