Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University
Consumer and housing finance planning for Financial Planning MCOM sem 1 Delhi University:- we will provide complete details of Consumer and housing finance planning for Financial Planning MCOM sem 1 Delhi University in this article.
Consumer and housing finance planning for Financial Planning MCOM sem 1 Delhi University:-Sources of Consumer Finance
- Traders: The predominant agencies that are involved in consumer finance are traders. They include sales finance companies, hire purchase and other such financial institutions.
- Commercial Banks: Commercial Banks provide finance for consumer durables. Banks lend large sum of money at wholesale rate to commercial or sales finance companies, hire purchase concerns and other such finance companies. Banks also provide consumers personal loans meant for purchasing consumer durable goods.
- Credit Card Institutions: These institutions arrange for credit purchase of consumer goods through respective banks which issue the credit cards. The credit card system enables a person to buy credit card services on credit. On presentation of credit card by the buyer, the seller prepares 3 copies of the sales voucher, one for seller, bank/credit card company and 3rd for the buyer. The seller forwards a copy to the bank for collection. The seller‘s bank forwards company. The bank debits theThe amountbuyer to receives monthly statement from the card issuing bank or company and the amount is to be paid within a period of 20 to 45 days without any additional charges.
(NBFC‘s):Non-bankingFinancial companies constitute an important source of consumer finance. Consumer finance companies also known as small loan companies or personal finance companies are non-saving institutions whose prime assets constitute sale finance receivables, personal cash loans, short and medium term receivables. These companies charge substantially higher rate of interest than the market rates.
- Credit Unions: A credit union is an association of people who agree to save their money together and in turn provide loans to each other at a relatively lower rate of interest. These are caller co-operative credit societies. They are nonprofit deposit taking and low cost credit institutions.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-Products covered
- Consumers financing covers a wide range of products such as cars, Televisions, washing machines, refrigerators, Air conditioners, computers etc. The products covered possess some distinct feature such as durability, sustainability, salability and serviceability etc.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-Rural Vertical
The CEO would need to articulate a strong commitment to rural marketing, only then will the marketing team give its focused attention and sustained support to this growing market segment.
HUL has already created a separate rural vertical with a team of RSMs, ASMs, SOs and RSPs committed exclusively to servicing the rural market. Rural has been given separate
sales targets and the company is in the process of allocating separate sales promotion and advertising budgets for this market.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-Retail and IT models
IT and connectivity impact the way business is done. Today with STD facility, the retailer can dial the town distributor instantly and fresh stocks would reach him in just a couple of days, because of better road connectivity.
- Benefits of IT Driven business strategy
- Ease of access
- Up-to-date content
- Layout, design, consistent themes Easy navigation
- Higher interactivity
- Access through multiple media
- Higher use of non-textual information Multiple languages
- Lower transaction cost.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-Rural managers
- As the rural market is already bigger than its urban counterpart, there is need to develop a good understanding about it among corporate managers. For this to happen rural marketing should be taught as a subject in every business school.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-PROJECT FINANCING
This stage of the project cycle involves securing finance for the project, either through the Government budget, or through aid donor funds. Once new projects have been approved, discussions are held with donors to secure their commitments to funds the projects. At a later stage, projects that have not secured donor funds are forwarded for financing in the budget.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-HOUSING FINANCE
Housing finance is done by state government departments like Tamilnadu Housing Board, Tamilnadu Slum Clearance Board, Tamilnadu Police Housing board (TNPHB), and development banks, provident fund loan (PF house loan), housing finance for group housing scheme for Aadhidravider development, building centre at all district collector offices. Privateorganization, limited companies are also granting loans for housing but the interest rate for finance is higher than other central and state Govt.department.
Central Govt. departments like HUDCO, HDPC, LIC etc also grant loans for housing projects.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-Banks
All nationalized and private banks also provide housing finance facilities. All the State Govt., Central Govt., private, departments and bank provide housing finance it purchasing land
- To construct new houses
- To purchase a flat in an apartment
- To purchase an individual houses
- To extent or additional construction
- To repair or maintain the houses
- For land development by layout formation
It also provide housing finance for facilities like water supply, power supply, arrange road facility, communication and common facilities line park, playground, indar stadium, recreational club etc
The housing finance is investing the money carrying out any housing project. Various methods are:
- Rent supplement.
- Long term low interest loans
- Public subsidized housing
- Tax reliefs
- State insurance for home mortages
- Mortages � pledging of land or any property to the bank for getting loan.
HUDCO, HDFC, LIC, GIC (General insurance corporation housing societies, Bank,
Private loan facilities for the people intending to construct their houses in a housing project.)
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-What is Housing Finance?
Housing finance is a broad topic, the concept of which can vary across continents, regions and countries, particularly in terms of the areas it covers. For example, what is understood by the term “housing finance” in a developed country may be very different to what is understood by the term in a developing country.
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University:-Types of Housing Finance in India
Housing finance types-
- Home Purchase Loans: Home Purchase Loans are the basic home loan you can opt for purchasing new home. This type of Home Loan is offered by all kinds of Banks and HFCs.
- Home Construction Loans: Home Construction Loans are especially meant for the construction of a new home. Formality of availing this loan has a little different from the normal Housing Loan. The plot on which the construction is being erected is purchased within a period of one year, the cost of the plot is then also included as the component for the valuation of total cost of the property.
3. Home Extension Loans: Home Extension Loans is offered for meeting the operating cost of alteration to an existing building. Extension here means addition of an extra room etc.
4. Home Conversion Loans: Home Conversion Loans are offered to those who want finance for the purchase of another home by converting the already existing home and on which loan is already sanctioned.Through this loan,the existing loan is transferred to the new home including the extra amount required and there is no need for pre-payment of the previous loan.
5. Land Purchase Loans: Land Purchase Loans can be availed for purchasing land for both home construction as well as investment purposes.
6. Stamp Duty Loans: Stamp Duty Loans is offered for the payment of stamp duty in the transaction of the property
7. Bridge Loans: Bridge Loans are offered for selling the existing home and purchasing of another. The bridge loan assists in the finance of new home, until a buyer is found for the old home.
8. Balance-Transfer Loans: Balance Transfer of the loan is the transfer of the balance of an existing home loan at a higher rate of interest (ROI) to either the same company or another.
9. Re-finance Loans: Refinance loans are availed when a loan from an organization at a particular ROI is dropping leading to a loss. Then the option of swap of the loan can be availed. One can avail this from either the same HFI or other at the current rates of interest.
10.NRI Home Loans: NRI Home Loans are meant for Non-Resident Indians who wish to build or buy a home
Consumer and housing finance planning for Financial Planning Mcom sem 1 Delhi University
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