A

PROJECT REPORT
ON

“A STUDY ON HOUING FINANCE LIFE

CORPORATION OF INDIA (LIC)”

Submitted in partial fulfillment of Degree of

MASTER OF BUSINESS ADMINISTRATION

MEDHAVI INSTITUTE OF MANAGEMENT,

JABALPUR (M.P.)

Under the Supervision of

Mr. Ranjeet Kaurav

AFFILIATED TO:
RAJIV GANDHI PROUDYOGIKI VISHWAVIDYALAYA,
BHOPAL (M.P.)
Submitted By
Deepali Rahangdale
MBA 3rd SEMESTER
Enrollment No: 0245MB23M038

SESSION: 2024 – 2025

1
 MEDHAVI INSTITUTE OF MANAGEMENT,
JABALPUR (M.P.)
DEPARTMENT OF MANAGEMENT

STUDENT DECLARATION
I Deepali Rahangdale (MBA 3rd semester) hereby declare that the Project
Report entitled “A STUDY ON HOUSING FINANCE LIFE CORPORATION INDIA (LIC)”
submitted in partial fulfilment of the requirement for the degree of Masters of
Business Administration to Rajiv Gandhi Proudyogiki Vishwavidyalaya, Bhopal
(M.P.). This is my Original work and that no part of this report has been submitted for
the award of any other Degree, Diploma, Fellowship or other similar titles or prizes and
that the work has not been published in any journals or magazines.

Signature:

Name: Deepali Rahangdale

rd
MBA 3 SEMESTER
Enrolment No : 0245MB23M038

2
 MEDHAVI INSTITUTE OF MANAGEMENT,
JABALPUR (M.P.)
DEPARTMENT OF MANAGEMENT

CERTIFICATE OF HOD
This is to certify that project report titled “ A STUDY ON HOUSING FINANCE
LIFE CORPORATION INDIA (LIC)” at submitted by Deepali Rahangdale of MBA III
semester may be accepted towards partial fulfilment of Masters of Business
Administration with specialization in (HR/Finance).

Date: Dr. Ashish Mishra

HOD
Faculty of Management
BGIEM, Jabalpur

3
 MEDHAVI INSTITUTE OF MANAGEMENT,
JABALPUR (M.P.)

DEPARTMENT OF MANAGEMENT

CERTIFICATE OF GUIDE
This is to certify that the project report entitled “A STUDY ON HOUSING
FINANCE LIFE CORPORATION INDIA (LIC)” Submitted by Deepali Rahangdale (MBA
3rd semester EN ROLL. NO- 0245MB23M038 in partial fulfilment of the requirement for the
degree of MASTER OF BUSINESS ADMINISTRATION of RGPV has worked under my
supervision and guidance.

The candidate is regular student of our Institution. This report is up to the

standard both in respect of its contents and literacy presentation for being referred to
all examiners.

Date: ……….. Signature:

Guide Name:
Mr. Ranjeet Kourav
(Dept. of MBA)
(MIMJ, Jabalpur)

4
 ACKNOWLEDGEMENT

It given me pleasure in expressing my heartfelt and in datedness for

the kind blessing showered upon student by honourable Principal HOD
Dr. Ashish Mishra.

I am highly indebted to guide name Mr. Ranjeet Kourav for his

guidance and constant supervision as well as for providing necessary
information regarding the project and also his support in completing the
project.

I am thankful to all the faculty members of MEDHAVI INSTITUTE OF

MANAGEM ENT, JABALPUR (M.P.) also for their help and valuable suggestion.

Name: Deepali Rahangdale

rd
MBA 3 SEMESTER
Enrolment No : 0245MB23M038

5
 INDEX

S. No. Particulars Page No.

1. Executive Summary 8
2. Introduction 10-19
3. Company Profile 20-30
4. Objective of the Study 31-32
5. Research Methodology 33-36
6. Data Analysis and Interpretation 37-48
7. Findings 49-50
8. Conclusion 51
9. Suggestions 52
10. Bibliography 53-54
11. Income Statement 55-56

6
 A STUDY ON HOUSING
FINANCE LIFE INSURANCE
CORPORATION INDIA

7
EXECUTIVESUMMARY

8
 EXECUTIVE SUMMARY
Purchasing the home of your dreams is not an easy task. Especially when
you plan to buy a home on loan. Home loans means that you buy a house on
installments. In simpler terms when you want to own a home and cannot afford t o
pay the amount in lump sum, you can pay it in monthly installments with an
interest rate. There are number of companies offer cheap loans at a low interest rate
You can avail loan against existing house for renovation or expansion etc. The
demand for home loans will not sag much. The reason is a substantial rise in the
income-generating capability of Indian youth. So this particular section will keep
the housing loan demand high and increased lending rates can only shelve their
plans for some time Providing Home Loans in India came to its full boon in the
recent years and now it is spread on a huge scale as many banks are coming t o
offer the Home loans in different special schemes to attract more number of
buyers. There are numerous nationalized as well as private banks that offer Real
estate Mortgage Home Loans in a hassle free manner in India these days. The
process of availing a home is made very easy that almost any middle class;
especially salaried class population of India dreams to achieve their own house in
their lifetime.
The study was based on the secondary data collection. Thus this report
seeks to utilize secondary method involves data collection through reference
paper , books, magazine and newspaper.

9
INTRODUCTIONOF
TOPIC

10
 INTRODUCTION OF TOPIC
Home loans work like any other debt. That is, loans are simply specific money that
we borrow from a bank, a private lender, or some other type of lender. Afterwards,
we must repay our debts with interest. However, unlike other types of loans, home
loans are different in several respects.

Owning a piece of land or property is a lifetime dream for every individual. There
are many home loans provider in the market. There are different types of home
loan.

• Home Purchase Loans

• Home Improvement Loans
• Home Construction Loans
• Home Extension Loans
• Home Equity Loans
• Land Purchase Loans
• Bridge Loans

Home purchase loans: These are the basic forms of home loans used for
purchasing of a new home. With about a million home lenders and mortgage
11
brokers it's becoming a tough challenge as the days are progressing. But at the
same time, when the sites are coming up with all the latest tools and relevant
information for us, and with all such conveniences, obtaining a home purchas e
loan or mortgage has become really pretty simple. However, at the same time
though, we may be flummoxed to look so many attractive rates and offers in the
market, not to forget the hidden costs associated with each of them.

Home improvement loan: Home improvement loans are used to financ e

improvements and add on to the existing set of credentials of beauty on your
owned house, recently purchased property or rented accommodation. Home
improvement loans are used to maintain or enhance the value of your house. I n
general it includes: repairs, remodeling, energy-related items (permanent in
nature), repairs, a new kitchen, a new bathroom, terrace, an extension or genera l
property improvements. Luxury items and fireplaces are generally not eligible,
though. Many improvements in landscape and even swimming pools are nowadays
considered to be a part of home improvement.
Home construction loan: Home construction loans are used to finance for the
construction of our newly acquired home or if we are planning to build a home.

12
The factors include in calculations for house building costs?
• Design of the house
• Construction cost
• Financing Cost
• Buildable site

All the above mentioned costs will help us to determine the amount we may need
to borrow. For example, besides calculating the construction costs, we may also be
required to consider the total expenditures to develop the site in order to build.
Each site is unique requiring different expenditures so this specific rupee amount
will vary from site location to site location.
Payment: Before the house starts getting build, we will be required to pay a
deposit to your builder as well as paying a deposit for the land if we are buying
land. As work progresses you will need to make payments to the builder. Certain
loans can be structured for progress payments to be made during construction.

Home extinction loan: Home extension loans are used by customers to get loans
from the banks to extend their houses, by adding more rooms, kitchens, wash

13
rooms, terraces, or any other rooms for your growing family. It may also be used to
enclose open balcony/terrace space, or constructing a Pujaghar.
Maximum Amount of Home Extension Loans: Banks generally offers about 70-
85% of the total amount of home extension as loan. The amount of loan sanctioned
also depends on a number of factors such as the age of the applicant at the time of
loan, tenure of the loan, repayment capacity of the borrower; his/her credit history
etc.

Home equity loan:Home equity loans helps customer to cash the market value of
the commodity by taking a loan by mortgaging the property. So, Home equit y
loans are availed by customers, who wish to mortgage his/her property to the bank
for taking some loan for some other purpose. Then, it's up to the bank's discretion
to consider the market value of the property and accordingly decide how much t o
pay to the customer. Both the residential as well as non residential property can be
considered for the approval of the loan, provided the mortgager is a licensed title
holder and the land is free form any kind of dispute. Home equity loans don't
restrict one to use the loan money in specific investments. It might also be used in
marriage, higher education, medical expenses, etc. However it should not be used
in any illegal or speculation purposes.

14
Bridge loan: land purchase loan: Land Purchase loans are used by customers who
wish to purchase a plot of land for commercial or residential purpose. Everyone
has his/her dream perfectly sketched in his souls and so is his ambition to get his
house erected on the exact location he dreamt that to be. If you have found and
shortlisted the piece of land, and have arrived here for finance, you have come t o
the best place you could have arrived in the web. Now, that you have decided t o
purchase a land as an investment or for your own dream home, you will realize that
a land purchase loan is one you will cherish. Loans that are strictly for land
purchase can be as scarce as good residential plots. While many lending firms
around the nation compete to provide mortgages for the purchase of a house on a
lot, only local institutions typically will be interested in lending for an empty lot.
Bridge loans are designed for people who wish to sell the existing home and
purchase another one. The bridge loans help finance the new home, until a buyer is
found for the home.

Bridge loans are used by customers as an effective vehicle to capitalize on a

purchase opportunity. It can be considered as a short term financing scheme which
is generally expected to be paid back, within the range of 6-36 months, till the time
the borrower gets more permanent and lower cost financing. So, bridge loans, (or
swing loans as they are otherwise said) is a short term loan provided by various
banks like Bank of India, Citibank, ICICI etc. often used for commercial real estate
15
purchases, retrieve real estate from foreclosure. Bridge loans in corporate finance
are called gap financing, and are used to cover the time between redemption of
issuance of one bond and its replacement by a new issue. They can also be
operating loans for periods between LOI and acquisition, or quiet period and IPO.
Bridge loan may contain a decent proportion of prepaid interest, sometimes as
much as six months. If the home gets sold before that time, you may receive
interest payments back, but if it hasn't sold, you may be required to continue
payments.

16
CONCEPTUAL BACKGROUND
There have been major up and downs in home loan market in India, but the Centr e
has taken some steps to offer relief to borrowers. With increasing interest rates on
home loans, the common man carries the burden of fat EMIs.

The interest rates fluctuations have been puzzling public and even to some experts.
The floating interest rate is now around 11.25-12% while the fixed rate is hovering
around 13.25-14%. The beginning of 2007 saw floating and fixed rates at 9.75%
and 11%, respectively. If the loan is taken for the short term, the increase in rates –
by 150 basis points – changes to a 9% rise in the EMI bill in the last three months.

Adding to the woes came floating and fixed rates which were only 7.75% and
8.25%. This translates to more than one-fifth increase in EMI for the borrowers
narrowing down on floating rate loans. In case of fixed rate home loans, it could b e
one-fourth.

17
 STAGES OF HOME LOAN

Applicatio n
Data Entry
Login Scanning

Recommendation

Double Checking
Sanctioning
Disbursement of
the loan

After Sales
Services

18
 TERMS AND CONDITIONS OF LIC HFL (HOME LOANS)
HDFC has always been market oriented and dynamic with respect resource
mobilisation as well as lending program. It provides loans to meet all requirements
of the customers to make their house a home. However following are the
conditions which are to be met by the customer before applying for a loan.

LOAN AMOUNT CONDITIONS

 LIC HFL finances upto 80% maximum of cost of property (agreement value +
stamp duty + registration charges)
 Repayment capacity takes into consideration factors such as income, assets,
qualifications, number of dependents, spouse income, liabilities, stability and
continuity of occupation and saving history.
 The loan amount of the individual is also subject to Instalment to Income Ratio
(IIR) which is 40% and Fixed Obligation Income Ratio (FOIR) which is45%.
 Maximum loan amount to an individual cannot exceed Rs1crore.
 SUPPORTINGDOCUMENTS
First of all when a customer came all documents are checked by the workstation
which are directly in contact with the customers. Necessary documents required
are as follows.
FOR ALL APLICANTS
1. Allotment letter of the co-operative society /association of apartment owners.
2. Copy of the approved drawings of proposed construction /purchase/extention.
3. Agreement of sale /sales deed /detailed cost estimate cost from architect.
4. If an applicant have been present employment /business or profession for less than
a year, mention on a separate sheet details of occupation for previous five years ,
giving position held, reasons for change and period of the same.
5. Applicable proceesing fees.
19
COMPANYPROFILE

20
 COMPANY PROFILE

“LIFE INSURANCE CORPORATION OF INDIA (LIC)”

Life Insurance Corporation of India (LIC) was formed in September, 1956, by an Act of
Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the
Government of India. The then Finance Minister, Shri C.D. Deshmukh, while piloting the bill,
outlined the objectives of LIC thus to conduct the business with the utmost economy, and a spirit
of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to
invest the funds for obtaining maximum yield for the' policy holders consistent with safety of the
capital; to render prompt and efficient service to policy holders, thereby making insurance
widely popular. Since nationalization, LIC has built up a vast network of 2,048 branches,
100divisions and 7 zonal offices spread over the country. The Life Insurance Corporation of
India also' transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC
is associated with joint ventures abroad in the field of insurance, namely, Ken-India ,Assurance
Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and
Life Insurance Corporation (International) E.C. Bahrain. The Corporation has registered a joint
venture company in 26 the December,2000 in Katmandu, Nepal by the name of Life Insurance
Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a local industrial
Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001
to tap the African insurance market.

21
Origin
Life insurance is designed to protect life and to product family against financial
uncertainties that may result due to unfortunate demise or illness. It can also view as a
comprehensive financial instrument, as a part of the financial planning offering savings &
investment facilities along with cover against financial loss. By choosing the right policy as per
the needs. i.e. customized solutions, you will be able to plan for a secure future for yourself and
your loved ones.

We all have different financial needs and objectives. But life insurance plays a
fundamental role in most of our plans for financial security. That's because of the variety of life
insurance plans available and the many ways they can be customized to meet unique needs at
different periods of your life.

22
Statement of theproblem
Insurance sector is a booming sector and the penetration in India is quiet low. So, all the
private players are trying to increase the market share in the public. This study also involves
creating awareness among the urban and rural consumer about the insurance sector and also the
various policies involving various premium rates. Since the penetration of private companies and
policies is low among the consumer, it is necessary to create awareness about life insurance
policies and to know the satisfaction level among consumer. Hence the present studies entitled
awareness about it among the consumer.

Insurance Industry
The business of insurance started with marine business. Traders, who used to gather in
the Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried
by ships. The losses used to occur because of pirates who robbed on the high seas or because of
bad weather spoiling the goods or sinking the ship. The first insurance policy was issued in 1583
in England. In India, insurance began in 1870 with life insurance being transacted by an English
company, the European and the Albert. The first Indian insurance company was the Bombay
Mutual Assurance Society Ltd, formed in 1870. This was followed by the Oriental Life
Assurance Co. in 1874, the Bharat in 1896 and the Empire of India in1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in Madras, the
Bombay life in Bombay, the National in Calcutta, the New India in Bombay, the Jupiter in
Bombay and the Lakshmi in New Delhi. These were all Indian companies, started as a result of
the swadeshi movement in the early 1900s. By the year 1956, when the life insurance was
nationalized and the Life Insurance Corporation of India (LIC) was formed on 1 st September
1956, there were 170 companies and 75 provident fund societies transacting life insurance
business in India. After the amendments to the relevant laws in 1999, the L.I.C. did not have the
exclusive privilege of doing life insurance business in India. By 31.3.2002, eleven new insurers
had been registered and has begun to transact life insurance business in India.

23
 History
Assets are insured, because they are likely to be destroyed, through accidental
occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns, lightning,
earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the asset is
exposed to that risk. Perils are the events. Risks are the consequential losses or damages. The
risk to an owner of a building, because of the peril of an earthquake, may be a few lakhs or a few
crores of rupees, depending on the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage may or
may not happen. Insurance is done against the contingency that it may happen. There has to be
an uncertainty about the risk. Insurance is relevant only if there are uncertainties. If there is no
uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human
being, death is certain, but the time of death is uncertain. In the case of a person who is
terminally ill, the time of death is not certain, though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The
peril cannot be avoided through insurance. The peril can sometimes be avoided, through better
safety and damage control management. Insurance only tries to reduce the impact of the risk on
the owner of the asset and those who depend on that asset. It only compensates the losses – and
that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance may
not be possible. Examples of non-economic losses are love and affection of parents, leadership of
managers, sentimental attachments to family heirlooms, innovate and creative abilities,etc.

24
Types of insurance
 Automobile insurance
 Aviation insurance
 Boiler insurance
 Builder’s risk insurance
 Casualty insurance
 Disability insurance
 Liability insurance
 Marine cargo insurance
 Purchase insurance
 Credit insurance
 Crime insurance
 Crop insurance
 Directors and officers liability insurance
 Property insurance
 Terrorism insurance
 Title insurance
 Travel insurance
 Workers’compensation
 Life insurance
 Total permanent disability insurance
 Locked funds insurance
 Marine insurance
 Financial loss insurance
 Health insurance
 Professional indemnity insurance
 Environmental liability insurance
 Pet insurance
 Political risk insurance

25
Policies
General Insurance
General insurance business in the country was nationalized with effect from 1stJanuary,
1973 by the General Insurance Business (Nationalization) Act, 1972. More than 100 non-life
insurance companies including branches of foreign companies operating within viz., the National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance
Company Ltd., and The United India Insurance Company Ltd. with head offices at Calcutta,
Bombay, New Delhi and Madras, respectively. General Insurance Corporation (GIC) which was
the holding company of the four public sector general insurance companies has since been
delinked from the later and has been approved as the "Indian Reinsurer" since 3 rd November
2000. The share capital of GIC and that of the four companies are held by the Government of
India. All the five entities are Government companies registered under the Companies Act, 1956.
The general insurance business has grown in spread and volume after nationalization. The four
companies have 2699 branch offices, 1360 divisional offices and 92 regional offices spread all
over the country. GIC and its subsidiaries have representation either directly through branches or
agencies in 16countries and through associate locally incorporated subsidiary companies in 14
other countries. A wholly- owned subsidiary company of GIC, i.e. Indian International Pvt. Ltd.
is operating in Singapore and there is a joint venture company, viz. Ken-India Assurance Ltd. in
Kenya. A new wholly owned subsidiary called New India International Ltd., UK has also been
registered.

26
PRODUCTS OF LIC
Whole Life with Profits Plan – 002
Features:-

This plan is mainly devised to create an estate for the heirs of the policyholder as the plan
basically provides for payment of sum assured plus bonuses on the death of the policyholder.
However, considering the increased longevity of the Indian population, the Corporation has
amended the above provision, thereby proving for payment of sum assured plus bonuses in the
form of maturity claim on completion of age 80 years or on expiry of term of 40 years from date
of commencement of the policy whichever is later. The premiums under the policy are payable
up to age 80 years of the policyholder or for a term of 35 years whichever is later. If the payment
of premium ceases after 3years, a paid-up policy for such reduced sum assured will be
automatically secured provided the reduced sum assured exclusive of any attached bonus is not
less thanRs.250/-. Such reduced paid-up policy is not entitled to participate in the bonus declared
thereafter but the bonuses already declared on the policy will remain attach, provided the policy
is converted in to a paid-up policy after the premiums are paid for 5years.
Suitable For:-

This policy is suitable for people of all ages who wish to protect their families from financial
crises that may occur owing to the policyholder's premature death.

27
Services
BENEFITSSURVIVAL
BENEFIT:-

Sum assured plus accrued bonuses and the terminal bonuses, if any; on the policyholder
attaining age 80 years or on expiry of term of 40 years from the date of commencement of the
policy whichever islater.

DEATH BENEFIT:-

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the
policyholder are paid to his/her nominees/heirs.

LIMITED PAYMENT WHOLE LIFE - PLAN 005 (WITH PROFITS)

Features:-

This is the best form of life assurance for family provision since it enables the Life Assured
to pay all the premiums during the ordinarily vigorous and most productive years of life. He need
not pay any premium in the later stages of life if and when his conditions might become adverse.
With Profits Limited Payments Policies do not cease to participate in profits after completion of
the premium paying period but continue to share in the periodical Bonus Distribution until the
death of the Life Assured. The Without-Profit option is available under Table no. 3. If the
policyholder pays at least 3 years' premiums and then discontinues paying any more premiums, a
reduced paid-up assurance policy comes into force. Such a reduced paid-up Policy will not been
titled to participate in the profits declared. Thereafter, but such Bonus as has already been
declared on the Policy will remain attached thereto. The premium paying14 term under this plan
is five years minimum and 55 years maximum.

28
GRACE PERIOD FOR NON-FORFEITURE PROVISIONS:

A grace period of 15 days will be allowed for payment of yearly or half-yearly premiums. If
death occurs within this period and before the payment of the premium then due, the policy will
still be valid and the Sum Assured paid after deduction of the said premium as also unpaid
premiums falling due before the next policy anniversary of the Policy. If the premium is not paid
before the expiry of the days of grace, the Policy gets lapsed.

REVIVAL:-

If the Policy has lapsed, it may be revived during the life time of the Life Assured,
but before the date of expiry of policy term, on submission of proof of continued insurability to
the satisfaction of the Corporation and the payment of all the arrears of premium together with
interest at such rate as may be prevailing at the time of the payment. The corporation reserves the
right to accept or decline the revival of discontinued policy. The revival of the discontinued
policy shall take effect only after the same is approved by the Corporation and is specifically
communicated to the Life Assured. The cost of the Medical reports, including Special Reports, if
any, required for the purposes of revival of the policy, should be borne by the Life Assured.

Payments of Claims:-

No Claims concession will be applicable to this Policy.

29
Back-Dating Interest:-

The policy can be back dated within the financial year. No dating back interest shall be
charged.

Benefits

Survival benefits:-

If one or both the lives survive to the maturity date, the sum assured, along with the
accumulated bonus, is payable.

30
ObjECTIVES

31
 OBJECTIVES OF THE STUDY

 To study the Liquidity in life insurance policy.

 To study the financial statement.
 To study the cash inflow & cash outflow

32
 RESEARCH
METHODOLOGY

33
 RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done
scientifically. The scope of research methodology is wider than that of research
methods. When we talk of research methodology we not only talk of research
methods but also consider the logic behind the methods we use in the context of
our research study and explain why we are using a particular method ortechnique.

1 RESEARCH DESIGN

“A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research purpose
with economy in procedure”.

Research design is the conceptual structure within which research is

conducted; it constitutes the blueprint for the collection, measurement and analysis
of data.

The type of research design used in the project was Descriptive research,
because it helps to describe a particular situation prevailing within a company.
Careful design of the descriptive studies was necessary to ensure the complete
interpretation of the situation and to ensure minimum bias in the collection of data.

34
2. SAMPLEDESIGN

Sampling is the selection of some part of an aggregate or totality on the basis

of which a judgment about the aggregate or totality is made. SecondaryData
method was used in this project. Since population was not of a homogenous group,
Stratified technique was applied so as to obtain a representative sample. The
employees were stratified into a number ofbalance sheet and income statement
were selected from each stratum on the basis of simple SecondaryData

2.1 SIZE OF THESAMPLE

For a research study to be perfect the sample size selected should be optimal
i.e. it should neither be excessively large nor too small. Here the sample size was
bounded.

2.2 RESEARCH AREA :Life Insurance CorpJabalpur

2.3 DATA COLLECTIONMETHOD

Both the Primary and Secondary data of lic collection method were used
in the project. First time collected data are referred to as primary data. In this
research the primary data was collected by means ofData Analysis The analysis
consisted of a number of questions in printed form. It had both open- end closed
end questions in it. Data which has already gone through the process of analysis or
were used by someone else earlier is referred to secondary data. This type of data
was collected from the books, journals, company records etc.

RESEARCH INSTRUMENT:

In this project, the data were collected through analysis of financial statement.

35
2.4 TOOLS USED FORANALYSIS

 Percentage analysis.
 Graph

Percentage analysis:
One of the simplest methods of analysis is the percentage method. It is one of the
traditional statistical tools. Through the use of percentage, the data are reduced in
the standard form with the base equal to 100, which facilitates comparison.
The formula used to compute Percentage analysis is,

36
DATAANALYSIS
&
INTERPRETATION

37
 DATA ANALYSIS& INTERPRETATION

Analysis of Total Assets

Annual Amount

Mar 2021 2,35,633

Mar 2020 2,16,805
Mar 2019 2,00,583
Mar 2018 1,71,089
Mar 2017 1,50,900

Years Amount Percentage %

Mar 2021 2,35,633 8.68%
Mar 2020 2,16,805 8.08%
Mar 2019 2,00,583 17.23%
Mar 2018 1,71,089 13.37%
Mar 2017 1,50,900 %

Percentage %

17.23%

13.37%

8.68% 8.08%

0.00%
2021 2020 2019 2018 2017

Interpretation:-
 This study shows that total assets of the company is
fluctuating.

38
 Analysis of Other Assets

Annual Amount

Mar 2021 1,00,051

Mar 2020 90,186
Mar 2019 80,565
Mar 2018 69,546
Mar 2017 16,2168

Years Amount Percentage %

Mar 2021 1,00,051 10.93%
Mar 2020 90,186 11.94%
Mar 2019 80,565 15.84%
Mar 2018 69,546 57.11%
Mar 2017 16,2168 %

Percentage %
57.11%

15.84%
10.93% 11.94%

0.00%
2021 2020 2019 2018 2017

Interpretation:-
 Analysis of Other Assets. We find that it shows the negative
effect on every year.
39
Analysis of Current Liabilities
Annual Amount

Mar 2021 68,947

Mar 2020 52,052
Mar 2019 39,779
Mar 2018 27,935
Mar 2017 32,989

Years Amount Percentage %

Mar 2021 68,947 32.45%
Mar 2020 52,052 30.85%
Mar 2019 39,779 42.39%
Mar 2018 27,935 15.32%
Mar 2017 32,989 %

Percentage %
42.39%

32.45%
30.85%

15.32%

0.00%
2021 2020 2019 2018 2017

Interpretation:-

 In this study we analysis that current liability of the

company is increases. Analysis of Other Liabilities

40
 Annual Amount

Mar 2021 1,46,164

Mar 2020 1,46,560
Mar 2019 1,44,545
Mar 2018 1,28,912
Mar 2017 1,06,834

Years Amount Percentage %

Mar 2021 1,46,164 -0.27%
Mar 2020 1,46,560 1.39%
Mar 2019 1,44,545 12.12%
Mar 2018 1,28,912 20.66%
Mar 2017 1,06,834 %

Percentage %

20.66%

12.12%

1.39%
-0.27% 0.00%
2021 2020 2019 2018 2017

Interpretation:-

 In this study we analysis that current liability of the

company is gradually decreasing.

41
Analysis of Sales

Annual Amount

Mar 2021 19847

Mar 2020 19696
Mar 2019 17357
Mar 2018 14836
Mar 2017 13986

Years Amount Percentage %

Mar 2021 19,847 0.76%
Mar 2020 19,696 13.47%
Mar 2019 17,357 16.99%
Mar 2018 14,836 6.07%
Mar 2017 13,986 %

Percentage %
16.99%

13.47%

6.07%

0.76%
0.00%
2021 2020 2019 2018 2017

Interpretation:-

 Sales analysis is mining your data to evaluate the performance of your

sales team against its goal.
 In this, sales is increasing till 2019 and then decreasing .

42
 Analysis of Expenditure

Annual Amount

Mar 2021 2046

Mar 2020 1616
Mar 2019 1093
Mar 2018 931
Mar 2017 893

Years Amount Percentage %

Mar 2021 2046 26.60%
Mar 2020 1616 47.85%
Mar 2019 1093 17.40%
Mar 2018 931 4.25%
Mar 2017 893 %

Percentage %

47.85%

26.60%

17.40%

4.25%
0.00%
2021 2020 2019 2018 2017

Interpretation:-

 This expenditure is gradually increasing and after 2020,fall.

43
 Analysis of Total Income

Annual Amount

Mar 2021 19,847

Mar 2020 19,669
Mar 2019 17,364
Mar 2018 14,840
Mar 2017 14,080

Years Amount Percentage %

Mar 2021 19,847 0.90%
Mar 2020 19,669 13.27%
Mar 2019 17,364 17.00%
Mar 2018 14,840 5.39%
Mar 2017 14,080 %

Percentage %
17.00%

13.27%

5.39%

0.90%
0.00%
2021 2020 2019 2018 2017

Interpretation:-

In total income we observe that income is increasingevery year

till 2019 and then gradually decreasing.

44
 Analysis of interest
Annual Amount

Mar 2021 14,452

Mar 2020 14,783
Mar 2019 12,891
Mar 2018 11,143
Mar 2017 10,231

Years AMOUNT Percentage %

Mar 2021 14,452 2.23%
Mar 2020 14,783 14.67%
Mar 2019 12,891 15.68%
Mar 2018 11,143 8.91%
Mar 2017 10,231 %

Percentage %

15.68%
14.67%

8.91%

2.23%
0.00%
2021 2020 2019 2018 2017

Interpretation:-

 In this study we find thatit is increasing gradually till 2019

followed by a fall from 2020.

45
 Analysis of Tax

Annual Amount

Mar 2021 614

Mar 2020 867
Mar 2019 948
Mar 2018 763
Mar 2017 1024

Years Amount Percentage %

Mar 2021 614 29.18%
Mar 2020 867 8.54%
Mar 2019 948 24.24%
Mar 2018 763 25.48%
Mar 2017 1024 %

Percentage %

29.18%
25.48%
24.24%

8.54%

0.00%
2021 2020 2019 2018 2017

Interpretation:-
.Taxe s is the forceful extraction of m oney from the assessee
 In this study we fi nd that the taxes is fluctuating.

46
 Analysis of Reserves $ surplus

Annual Amount

Mar 2021 20,420

Mar 2020 18,092
Mar 2019 16,158
Mar 2018 14,140
Mar 2017 10,976

Years Amount Percentage %

Mar 2021 20,420 12.86%
Mar 2020 18,092 11.96%
Mar 2019 16,158 14.27%
Mar 2018 14,140 28.82%
Mar 2017 10,976 %

Percentage %

28.82%

14.27%
12.86% 11.96%

0.00%
2021 2020 2019 2018 2017

Interpretation:-

 I find that Reserve And Surplus is fluctuating every year.

47
 Analysis of Net profit

Annual Amount

Mar 2021 2,734

Mar 2020 2,401
Mar 2019 2,430
Mar 2018 2,002
Mar 2017 1,931

Years Amount Percentage %

Mar 2021 2,734 13.86%
Mar 2020 2,401 -1.19%
Mar 2019 2,430 21.35%
Mar 2018 2,002 3.67%
Mar 2017 1,931 %

Percentage %

21.35%

13.86%

3.67%

0.00%
-1.19%
2021 2020 2019 2018 2017

Interpretation:-

 In this study we analysis that N et Profit of the

company is fluctuating each and every year.

48
FINDING, SUGGESTION A ND
Conc LUSION

49
 FINDINGS
 The Total Assets of LIC housing finance having growth every year. It give the effective
production.

 The Other Assets of lic housing finance gives negative effect.


 Liabilities of the company increases that shows company purchased good on credit.

 Increasing Revenue can result in higher cost and lower profit margin.


 Increasing expenditure usually have a negative impact on a business they are likely to
increase the BEP or reduce the business profit.

 Revenue in the total amount of income generated by the sales of goods or service in LIC
finance I find that the total income is increase.


 Highest interest rates means people receive a better returns , in LIC interest is fluctuating.

 By increasing or decreasing fares the government affects. In LIC I find that takes gives
the fluctuating effects.


 Net Profit of company are the total profit of the company in this I find that net profit of
company is increasing every year.

50
 CONCLUSION

The below-mentioned data help in drawing the criteria to select the most
suitable bank. The rate of interest is an important point that differentiates
banks while opting for a new Home loan. Here we can see that the interest rate
charged by the public bank is substantially low while compared to private
banks. Life Insurance Corp. interest rate is around 9.5 % for its new Home
loan whereas the lowest rate charged by private banks is 11%. Most of the
public banks have relaxed the customers for the prepayment penalty whereas
others private banks are charging a good amount if the loan is wrapped up
earlier than schedule. The processing charges by the public banks are also
lower than others private banks. To conclude we can say that the recent ups
and downs in an interest rate have created a wide gap between the Public and
Private bank. Monetary benefit seems to be more while selecting a public bank
for a new Home loan, but one should also keep in mind the average level of
service quality provided by these banks. Private Banks always get an edge
over public banks while it’s a matter of service quality. If the customer is
ready to pay more and doesn’t want to negotiate with the services, then private
banks are ahead of public banks. On the other hand, the monetary benefit is
substantial with a public bank. If the customer is desirous to take a loan for
long duration and there is no hurry, then go for a public bank whereas if there
is immediate requirement and that too for a short period, then private banks
can fulfill the needs.

51
 SUGGESTIONS

 Customer awareness program is required so that more people should

attract towards LIC schemes.

 I observed from year 2017 to 2021 liabilities of company is continually

increasing so LIC should take strong steps to maintain that.
 Life Insurance Corp. should more concern about physical verification
rather than phone verification so it will avoid fraud or cheating.
 Customer home should more concern about the fastest settlement of
customer problems.
 Before deducting or charging any monetary charge Life Insurance Corp.
must consult with customer.
 Sales staff should be trained, well educated & proper trained to convince
the people about different cross sale product.
 Life Insurance Corp. should focus on retaining existing customers.
 Life Insurance Corp. must take feed backs of customers regarding
features &services so there will be more transparency between company
and customers.

52
B IBLIOGRAPHY

53
 BIBLIOGRAPHY

BOOKS:

 SHASHI K. GUPTA,(5 T H edition); FINANCIAL MANAGEMENT THEORY AND

PRACTICE ,kalyanipublishers.
 CR KOTHARI, (3 rd edition 2016); RESEARCH METHODOLOGY, METHODS
ANDTECHNIQUES, New age internationalpublishers.
 SHASHI K G., SHARMA R.K. “Management Accounting”, Published by Kalyani
Publishers 11thedition.
 S.C. KUCHHAL “Finance Management”, Published by Chaitanya Publishers 6thedition.
 CHANDRA “Finance Management”, Published by Tata Mc-Graw-Hill Publishers 6 th
edition.
 M.Y.KHAN., P.K.JAIN “Finance Management”, Published by Tata Mc-Graw-Hill
Publishers 4thedition.

Webliography

 www.licindia.com/
 https://economictimes.indiatimes.com/topic/homeFinance
 https://www.indeed.co.in/cmp/homeFinance/reviews

54
 INCOME STATEMENT

Mar Mar Mar Mar Mar

Annual
2021 2020 2019 2018 2017

Sales 19,847 19,696 17,357 14,836 13,986

Other Income 0 -26 6 3 93

Total Income 19,847 19,669 17,364 14,840 14,080

Total Expenditure 2,046 1,616 1,093 931 893

EBIT 17,801 18,052 16,271 13,909 13,187

Interes t 14,452 14,783 12,891 11,143 10,231

Tax 614 867 948 763 1,024

Ne t Profit 2,734 2,401 2,430 2,002 1,931

55
 BALANCE SHEET

Equities & Mar Mar Mar Mar Mar

Liabilities 2021 2020 2019 2018 2017

Share Capital 100 100 100 100 101

Reserves &
20,420 18,092 16,158 14,140 10,976
Surplus

Current
68,947 52,052 39,779 27,935 32,989
Liabilities

Other
146,164 146,560 144,545 128,912 106,834
Liabilities

Total
235,633 216,805 200,583 171,089 150,900
Liabilities

Assets

Fixed Assets 247 254 135 97 96

Current
234,334 215,565 199,642 170,295 14,587
Assets

Other Assets 1,051 986 805 696 136,216

Total Assets 235,633 216,805 200,583 171,089 150,900

Other Info

Contingent
25 70 79 97 81
Liabilities

56