HDFC (Housing Development Finance Corporation)

What is HDFC?

HDFC can be expanded as Housing Development Finance Corporation. HDFC has been providing its services for the last four decades and has an association with the Indian housing sector. Mr. H. T. Parekh is the founder of the organization and has the aim of serving the customer first. The organization has interconnected offices all over India.

Products and Services of HDFC

HDFC provides many products and services to its customers and some of them are as follows−

• Loans for purchasing and constructing a house

• Loans for the purchase of land

• Loans for home improvement

• Loans for extending the house

• Loans against property

• Loans for professionals

Other services that it provides to its customers are

• Banking

• Insurance

• Asset management

• Real estate venture capital

• Education loans

Latest Launches and Activities of HDFC

• SmartUp Unnati program has been launched so that women entrepreneurs can be helped

• Shaurya KGC card is launched for the armed forces

• Payzapp, SmartBUY, and many other apps have been launched

• It has become the largest private sector lender as market capitalization crossed $100 billion

• HDFC Bank Parivartan’s ECS scholarship has also been launched

HDFC became a part of D-SIB

RBI has labeled HDFC, ICICI, and SBI as Domestic Systematically Important Bank (D-SIB) because it is estimated that these banks will not fail. They will also get support from government in the times of financial crisis. These banks also have assets that exceed the GDP by 2%. The financial system of the country will be disturbed by the failure of any of these banks.

Subsidiaries of HDFC

HDFC has many subsidiaries and we will discuss them here in detail.

HDFC bank

HDFC Bank is a subsidiary which is used to provide home loans after paying a fee. HDFC holds approximately 26.4% shares in the HDFC bank. Wholesale, retail, and treasury banking are the sources of revenue for the bank. In April 2023, the bank became the third largest publically traded company as its capitalization was $120 billion.

HDFC Life Insurance Company

HDFC has approximately 48.7% shares in the HDFC Life Insurance company. The company has more than 72,000 consultants whose job is to sell the policies.

HDFC Asset Management Company

HDFC Asset Management Company is responsible for managing the Mutual Fund scheme of HDFC. HDFC holds a stake of approximately 52.6%. The company manages different schemes like equity, debt, exchange-traded funds, and many more schemes.

HDFC ERGO Generate Insurance Company

HDFC and ERGO Insurance Group combined formed a General Insurance Company in which the number of shares held by the ERGO group is 26% while HDFC holds 50.5% of the shares. The market share of the company by March 31, 2023 was 10.5%.

HDFC Capital Advisors

HDFC Capital Advisors was launched in 2016 as a private equity real estate firm. The number of stakes that HDFC holds is 90% and the remaining 10% is with the Abu Dhabi Investment Authority. HDFC Advisors is the merger of HDFC Property Ventures and HDFC Venture Capital.

Conclusion

HDFC is a company started by H. T. Parekh in 1977. Now the company has many subsidiaries like HDFC Bank, a life insurance company, capital advisors, and many more. The HDFC bank has become a part of D-SIB as it is estimated that it will not fail for a long time.

FAQs

FAQ 1: How will I become eligible for an HDFC home loan?

Ans: HDFC will check the sources of income and repayment capacity to decide whether or not you are eligible for a loan.

FAQ 2: Can I pay back my loan through EMI?

Ans: Yes! You can pay back the loan through EMI.

FAQ 3: Does HDFC provide insurance schemes?

Ans: Yes! HDFC provides different types of insurance schemes. Some of them are health insurance, life insurance, vehicle insurance, and many more.

FAQ 4: How many types of accounts can I open in the HDFC bank?

Ans: You can open different types of accounts which include savings, current, salary, and many more.

FAQ 5: What type of loans are provided by HDFC?

Ans: The different types of loans provided by HDFC include car loans, home loans, education loans, and many more.