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RESEARCH REPORT
ON

HOME LOANS
RESEARCH REPORT SUBMITTED FOR THE PARTIAL FULFILLMENT OF MBA PROGRAMME

SUBMITTED TO

MR. VIKRAM BISHEN

(H.O.D. MBA)

SUMBITTED BY MOHAMMAD FAISAL JABRI

SAHARA ARTS AND MANAGEMENT ACADEMY

LUCKNOW CONTENTS

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SECTION A

The Project Profile

Project background and introduction Why this project was undertaken Problem environment The problems being faced Competitive situation

SECTION B The Project- Background and Methodology

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esearch problem esearch objective and related sub objectives re"uirements in detail and source of

!nformation information

Choice of research design # alternatives and choice esearch instrument used # details and why$

%ampling techni"ue used and sample si&e # why$ 'ield work # method used for data collection (nalytical tools used )imitations

SECTION C Ana !"#"

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%ample profile Primary data tabulation and interpretation Cross * Bivariate and other analysis !nterpretations and findings Conclusion %uggestions

ACKNOWLEDGEMENT

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Preparing a project report of this nature is an arduous task and ! am fortunate enough to get support from a large number of persons to whom ! shall always remain grateful+ 'irstly, ! would like to thank Mr+ (%-W(.! /0M( , (ssistant 1irector of !nstitute of Productivity and Management for his kind support and giving me the opportunity to present this project+ ! am very thankful to my guide Mr +(%-W(.! /0M( , (ssistant

1irector, !nstitute of Productivity and Management for the valuable advice, guidance , precious time and support who motivated and supported me a lot in carrying out this project+ )ast but not the least , ! would like to thank all the respondents for giving me their precious time and relevant information and e2perience ! re"uired without which this project would have been a different story+

P)(C3 4 )0C/.5W 1(T3 4 SECTION A PROJECT PROFILE

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PROJECT BACKGROUND AND INTRODUCTION

This project revolves around the scene which reflects the picture how loans are taken, on what rates are they been released and also about the schemes floating in the market+ The housing finance sector has emerged as one of the outstanding successes over the last decade+ The financial year 6778- 6779 witnessed a remarkable growth in the overall economy of the country+ This sector plays a very role in the economy growth of the country+ The housing finance industry continued to show a robust growth rate during the year mainly on account of stable property prices, ta2 incentives, increased urbani&ation and evolution of nuclear family system, an increasing per important

capita income, a desire for independent home ownership and the availability of finance at a lower interest rate+ Though the above growth of development bode good for the housing

the industry, much is e2pected of the

industry sector to improve poverty elevation program and

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social conditions of

human settlements+ (s per the current

estimates , !ndia faces a shortage of about 87 million dwelling units and this backlog is growing+ WHY THIS PROJECT WAS UNDERTAKEN -ousing industry in finance industry is one of the grooming

!ndian economy+ (s we know this industry is in the :1P of the country+ This project will

adding a lot

help me to gain knowledge regarding

housing loan, and

making consumer well ac"uainted about the affairs regarding taking over of loans and fluctuating rate of interest+

This project will definitely present scenario

help me to know about the

of housing loan in our country+ !t is very

interesting o work on this project because while doing this project ! can see that now every one can easily make their dream home+

Countries economy is growing and per capita income is also increasing + .ow peoples standard of living has increased

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as compare to past +-ousing is one of the necessary need for the people+

-ousing loan which is now being provided by many financial !nstitution demand of and in nationali&ed banks, our has uplift the

housing

country+ therefore

increasing

demand of housing has created an an2iety in me to work on this project+

PROBLEM ENVIRONMENT

!n present conte2t banks have their own home loan rate+ !t is well established by +B+! but get varied from bank housing schemes

to bank, slightly in decimals+ previously,

were running high ; high due to lowering interest rates which brought an adverse effect on the mentality of would be

buyers +(s not going so far, rate were so low that it injected high profile eagerness got collapsed due to increase rate+

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(part from the problem posed by interest rate, some other problems are also there which effect the home loans procedure+

The problems are as follows4 o Man should be capable of repayment ; so he should earning more than <7,777 as per to pay the 3M!+ o Character that is socio economic background of the person should be checked out and this is being done by internal credit officer that whether he is an alcoholic or chain smoker if so money is returned back get "uestionable+

o Person should not be having bad credits+

(bove

problems

posed

to

be

simple

when

kept

individually ; when aggregated cultivate the problem for both customer ; the banks*corporation+

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THE PROBLEMS BEING FACED

5ne of the most important reasons for the real estate boom in the country was the lowering of interest rate on home loan in 6778+

The easy availability of funds at low interest rates brought a house within the reach of the middle class+ The average of home buyers around 97 =>ears in 6777- come down below 87, and the demand for residential units went up manifold+ %o will the recent upward revision affect the market$ will+ 'rom 'ebruary <, housing finance half a

To some e2tent it

company -1'C increased its home loan rate by

percentage point to ?+6@A+ other banks and institutions are to follow suit soon++ !n fact, this is the second time in si2

months that the bank has increased rates+ 3arlier, it had increased the rate from6 B+6@A to B+B@A+ When interest rate increases by <A point , the 3M! per s < lakh loan for 67 years goes up by s C@+ that

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means the 3M! on a

s 67 lakh loan will rise

s <877+CB

!C-( 1 3))!% C35 (nshuman maga&ine believes a 7+@ to one percentage point increase in interest rate would not effect the market as buyers can absorb the cost+ D But if the rates rise further, it would have an adverse effect on

demand,E he adds+ 1)' universal vice chairman ajiv %ingh believes DThe

rise interest rates would effect sentimentsE+ Cushman and Wakefield points out that it would effect investors returns from real estate+ But will that stop would be buyer eager to ac"uire their own house$ ThatFs something only they

themselves know for sure+

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COMPETITIVE SITUATION

-ome loans this sector is one of the booming sector, playing a vital role in the economic growth of the country+ Many big corporations, nationali&ed banks and private banks

has entered in this field+ %ome of the big competitors are4

o !C!C! o -1'C o )!C o %T(.1( 1 C-( T3 31 o %B! o 5 !3.T() B(./ 5' C5MM3 C3 o P0.=(B .(T!5.() B(./ o ())(-(B(1 B(./

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LIFE INSURANCE CORPORATION

!t is the second largest housing finance company in !ndia + incorporated on <G =une <G?G under the companies act,<G@C+

The company is recogni&ed by national housing bank and listed in the .%3 and B%3 and its shares are traded

only in de mat format +

The main objective of the company is providing long term finance to individuals for purchase*construction*repair and renovation of new *e2isting flato*house+

Today the company has a proud group of over C+@@ lakh prudent house owners who have enjoyed he companies financial assistance+ The company enjoy D(((E rating from crisil indicating highest safety with regard to the ability to service interest and repay capital+

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The company floating

is providing a home loans at B+@A

ate of interest+ Processing fee is <A of the loan+

company has launched new : !- )(HM! %C-3M3 +

!nterest rate charged is ?A floating+ Processing fees is s <777+

Minimum loan is @77777+ Ma2imum loan is G@A of the face value+

FEATURES OF THIS SCHEME ARE

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.o e2tra document is re"uired+ .o need of guarantor is re"uired+

Processing fees is low+ Top value is also provided by corporation+ )!C is also providing takeover facility at easy rate of interest+

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HDFC

-1'C

the

premier

housing

finance

institution

has

recently introduced a uni"ue facility - 3M! , which is yet another convenient epayment option for customers+ this option allows

customers to start their 3M!F% even on partly dispersed loans+ !t offers the widest range of home loans products+ these include4

'i2ed rates home loan monthly rest option+ (djustable rate home loan+ -ome loan improvement loans+ -ome conversion loans+ )and loans+ -ome e"uity loans+

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HOME LOANS$ HIGHLIGHTS OF HDFC (part from a circle ranges of products -1'C also offers 4 Customi&ed loan repayment facilities, which include step up repayment plan, ballon payment, accelerated 3M! and trench 3M!E% -1'CF% loan counselors and discuss their re"uirements+ With them and avail of solution that will give them the best value for their deal+ -1'C has consistently endeavored provide top notch service to its customers through to its

e2tensive network of offices+ -1'C has a large network of above 6<6 outlet offices and also covers over G7 location

through its outreach programs + the loan can only be serviced through -1'C offices in their cities+

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ICICI !C!C! Bank offers wide variety of )oans Products to suit your re"uirements+ Coupled with convenience of networked

branches* (TMs and facility of 3-channels like !nternet and Mobile Banking, !C!C! Bank brings banking at your doorstep+ %elect any of our loan product and provide your details online and our representative will contact you for getting loans+

The .o+ < -ome )oans Provider in the country, !C!C! Bank -ome )oans offers some unbeatable benefits to its customers - 1oorstep %ervice, %implified 1ocumentation and :uidance throughout the Process+ !tIs really easy J

H%&' L%an"

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(ttractive interest rates 1oor-step service from

en"uiry

stage

till

final

disbursement Can transfer your e2isting high-interest rate loan 'ree personal accidental insurance %pecial <77A funding for select properties

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K The same 3M! and tenure but an additional amount as N% F'' %n Pa() Pa!&'n) Why you must consider an !C!C! -ome )oan !n addition to a host of other features, here are three great reasons why every home loan seeker should consider !C!C! -ome 'inance+ Y%* +an )a,' a %an )% ('- a+' an '.#")#n/ %n' !nterest rates on home loans have come down considerably in the last few years+ !ndividuals who opted for housing loans in the years gone by, are still servicing them at GA to <6A per annum+ Luite a price to pay, since one can get a loan today for around ?A per annum+ !n such a case, you can opt for a balance transfer+ 0nder this scheme, customers can replace their e2isting old high interest loan by a cheaper Me"ual to applicable current ratesN loan+ !C!C! -ome 'inance will not only finance the balance amount of outstanding loan but also your prepayment charges to the old housing finance company+The result4 K ( lower 3M! with the same tenure K ( reduced tenure with the same 3M! K ( reduced tenure and 3M! loan

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Oou may be e2pecting a windfall or inheritance in the near future+ 5r, even planning on selling some property or assets whose proceeds you can use to pay off this loan+ !t could also be the case that your income increases considerably and you would want to prepay at least a part of the loan+ Most housing finance companies will take fees from you for part prepayment+ !C!C! -ome 'inance does not levy any fee on Part # Prepayment+ %o, if there is a high probability that you will be able to at least partprepay your loan, then you should consider a loan from a housing finance institution that does not take fees from you for doing so+ When you do prepay, you will get an option on whether you would like to reduce the 3M! or the tenure+ Un0%("''n +%n)#n/'n+#'" a(' )a,'n #n)% a++%*n)

!C!C! -ome 'inance offers a free accidental death cover at absolutely no e2tra cost+ This is e2tremely beneficial and protects both, your home and your family+ %hould you meet with an accident that results in death, your family will not face any problem concerning the loan repayment+ The

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entire loan will be repaid out of the insurance cover and they will not have to contend with any 3M! payments+

SBI$ HOUSING LOAN

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-ome is where the heart isJ (t %B!, we understand this better than most # the toil and sweat that goes into building* buying a house and the subse"uent pride and joy of owning one+ This is why our -ousing loan schemes are designed to make it simple for you to make a choice at least as far as financing goesJ

1SBI2H%&' L%an"3 Un#4*' 0'a)*('"$ K .o cap on ma2imum loan amount for purchase* construction of house* flat K 5ption to club income of your spouse and children to compute eligible loan amount K Provision to club e2pected rent accruals from property proposed to compute eligible loan amount K Provision to finance cost of furnishing and consumer durables as part of project cost K epayment permitted upto B7 years of age

K 'ree personal accident insurance cover

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K 5ptional :roup !nsurance from %B! )ife at concessional premium M0pfront premium financed as part of project costN K !nterest applied on daily diminishing balance basis K Package of e2clusive benefits4

Complimentary international (TM-1ebit card Complimentary %B! Classic* !nternational Credit Card with waiver of joining and first yearFs fees

5ption for 3-banking Concessional package under PCredit /ha&anaF for prospective car loan borrowers whose accounts are conducted satisfactorily

@7A concession in charges in respect of all personal che"ues remittances* collection of outstation

P*(-%"' K K Purchase* Construction of new -ouse* 'lat Purchase of an e2isting -ouse* 'lat

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K K

Purchase of a plot of land for construction of -ouse 32tension* repair* renovation* alteration of an e2isting -ouse* 'lat

Purchase of 'urnishings and Consumer 1urables as a part of the project cost

Takeover of an e2isting loan from other Banks* -ousing 'inance Companies

E #/#5# #)! Minimum age 6< years as on the date of sanction %teady source of income

L%an A&%*n) K (pplicant* any one of the applicants are aged over 6< years and upto 9@ years # C7 times .et Monthly !ncome M.M!N or @ times .et (nnual !ncome M.(!N, subject to

- 26 -

aggregate repayment obligations not e2ceeding @B+@7A of .M!* .(! K (pplicantMsN aged over 9@ years of age# 9? times .M! or 9 times .(!, subject to aggregate repayment obligations not e2ceeding @7Aof .M!* .(!

Package of e2clusive benefits4

Complimentary international (TM-1ebit card Complimentary %B! Classic* !nternational Credit Card with waiver of joining and first yearFs fees

5ption for 3-banking Concessional package under PCredit /ha&anaF for prospective car loan borrowers whose accounts are conducted satisfactorily

@7A concession in charges in respect of all personal che"ues remittances* collection of outstation

HOUSING LOAN 2 INTEREST RATES

In)'('") (a)'"

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F %a)#n/ #n)'('") (a)'" ( #n,'6 )% S)a)' Ban, A67an+' Ra)' 2 SBAR)$ (SBAR$ 89.:;<) T'n*(' 0pto @ years (bove @ and upto <@ years (bove <@ and upto 67 years Ra)' %0 In)'('") (-.a.) 6+6@A below %B( <+B@A below %B( <+@7A below %B( i+e+ ?+77A i+e+ ?+@7A i+e+ ?+B@A

F#.'6 In)'('") Ra)' Ra)' T'n*(' In)'('") (-.a.)= 0pto @ years (bove @ and upto <@ years (bove <@ and upto 67 years STANDARD CHARTERED ?+@7A G+77A G+6@A %0

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%tandard Chartered )oan (gainst Property is a multipurpose loan, which can be taken against your residential or commercial property and is available for any e2pense, be it a family holiday, your childIs education, home renovation, your daughterIs marriage, or even business e2pansion+ This loan can be as high as @@A of the market value of your property and is available to both salaried and self-employed individuals+

Q Q Q Q Q

( multipurpose loan at very attractive interest rates R.o !ncomeR document scheme available .o guarantors re"uired -igh loan amounts Minimum documents and speedy approval %an )% S)an6a(6

Y%* +an a "% )(an"0'( !%*( '.#")#n/ C>a()'('6 Ban, )%6a! an6 "a7' %n #n)'('").

The %tandard Chartered Bank -ome )oan

egular

ate has been

increased from <7+@A to <<A effective May <, 677@+ Margins

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G('a) Sa7#n/"$ Q 5ne time processing fees Q .o hidden charges Q Choice of variable and fi2ed rate loans G('a) Va(#')! %0 %an" 0%($ Q Q Q Q Purchasing a plot Purchasing a constructed flat * house Purchasing a flat under construction -ome e2tension and renovation G('a) 0 '.#5# #)!$ Q )oans for salaried and self employed individuals Q .o :uarantor re"uired Q Choice of tenure from @ years to 67 years Y%* +an a "% )(an"0'( !%*( '.#")#n/ %an )% S)an6a(6 C>a()'('6 Ban, )%6a! an6 "a7' %n #n)'('").
Please note: The Standard Chartered Bank Home Loan Regular Rate has been increased from 11% to 11. % effecti!e "o! 1# $%%

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SECTION B

THE PROJECT BACKGROUND AND METHODOLOGY

REASEARCH PROBLEM

!n research process the first and the foremost step happens to be that of selecting and properly defining a research problem+ The research problem should be defined in a systematic manner, giving due weightage to all relating points+ The techni"ue for the purpose involves the undertaking of the following steps generally one after the other4 -

%tatement of problem in a general way+ 0nderstanding the nature of the problem+ %urveying the available literature+ 1eveloping the ideas through discussions+

ephrasing the research problem+

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RESEARCH OBJECTIVE ? RELATED SUB OBJECTIVES.

The

primary

objective

of

research

is

to

awareness,

acceptability, sustainability among the employees and also making the consumer well ac"uainted about the affairs

regarding take over of loans and fluctuating rate of interest+

(fter unveiling the primary objective , now its turn for the secondary objective which inculcate analysis of details

regarding the home loans pursed by the people+ The areas which are to be kept in light are4

(mount of loan taken by employees+ !nstitution from which loan has been taken+

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INFORMATION RE@UIREMENT2 IN DETAIL? SOURCE OF INFORMATION$ Collection of information is a basis to make decision+ !nformation irrelevant in collected making unsystematically ; unscientifically decision+ Banks ; Corporations is are

continuously collecting information from their people, who have already taken loan ; those who want to take loan+ they will provide company systematic and relevant information+ before giving loans, banks and corporations has to see that whether the person will be able to pay 3M! or not+ 'or this they seek certain informationFs like4

-ow many children do they have+ Monthly income Mwhich should more than s+ G777N

Credit clearance M whether he *she has taken loan and paid it or not+N (bout their occupation+ Mortgage property should be marketable+

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SOURCE OF INFORMATION$ !nformation comes either from sources internal to the

firm or from e2ternal sources+ e2ternal sources , if information can further broken down into primary and secondary sources+ !n my project ! have used primary sources or primary data+ primary data are those which are collected specifically by or for the data users +There is no intervening party to summari&e the original data+ These data are directly collected from the people+ ! have done the same job, ! have collected the information directly from the people+ People who have taken home loans from different banks and corporations at different rate of interest+

CHOICE OF RESEARCH CHOICE$

DESIGN A ALTERNATIVES

AND

!n my research project ! have used e2ploratory research+ 32ploratory research is a natural step+ (s the number of

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opportunities or possible problems may be vary large, it is impractical to find and study each of them+ 32ploratory

research is useful to find the most likely alternatives, which are then turned into hypothesis+ 'ormal design is conspicuous By its absence in e2ploratory studies+ The imagination of the researcher is the key factor + -owever, three lines of at tact may aid in finding hypothesis of value4 %tudy of secondary sources of information+ o %urvey of individuals who can opt to have ideas on the

:eneral subject+ o (nalysis of selected cause+ ! have used e2ploratory research for my project+ This topic -ome loans is a wide topic and needs lot of

e2planation+ SAMPLING TECHNI@UE USED AND SAMPLE SIBE %ampling may be defined as the selection of some of an aggregate or the totality on the basis of which a judgment or inference about the aggregate or totality is made+ !t is the process of obtaining the information about an entire population by e2amining only part of it+

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The sampling techni"ue for the problem is4

N%n A

P(%5a5# #)! Sa&- #n/. 0nder this ! have used judgmental and then convenience sampling was done+ !n judgmental sampling first ! sought advice of my instructor+ ! was told to choose the best sample for my study+ (fter this ! selected the items from the universe as per convenience sampling+ The universe under study consisted of customers having the following characteristics4 (ge between 6< and C7 years M both male and femaleN 3ducation more than and including high school+ People who have already taken home loan+ esidents of )uck now

Sa&- ' S#C'$ 2 The si&e of sample chosen for the "uestionnaire was 677+

FIELD WORKAMETHOD USED FOR DATA COLLECTION

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have

collected

schemes

information

from

different

banks+ ! have approached to different customer who have already taken home loans from different banks at different

rate of interest +

M')>%6" *"'6 0%( Da)a C% '+)#%n Luestionnaire method was used for data collection+ Luite often "uestionnaire is considered as the heart of research+ -ence it should be carefully constructed+ The basic objective of preparation of this "uestionnaire is to know the awareness level of the peoples regarding services offered by different home loan

banks in )ucknow + ! framed

structural and non # disguised "uestionnaire+ Luestionnaire includes4 1ichotomous "uestion Multiple choice "uestions ank order "uestion

5pen ended "uestion

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LIMITATIONS

%ince the report is based on sampling the sample may not be a true representative of the population+ (lso ! have used "uestionnaire for the customer feedback, here there is a possibility that the clients may not have given true information pertaining to the returns on the investments, amount invested in a year, total income as usually people avoid divulging such details,

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and people generally have the tendency to e2aggerate certain information+ (lso the opinion aired by them may be biased due to unavoidable factors+ This may effect the interpretation of the data collected up to the e2tent of the information given by the client is false and biased+ %ince my project covers a very wide field like home loan services so omission and commission in the data collection is "uite possible+ 'inancial constraints limited the e2haustiveness of the study+

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SECTION C ANALYSIS

SAMPLE PROFILE ! have already taken collected data from those people who have loan from different banks*corporations at

different rate of interest+ sample si&e of my project is 677+

@UESTIONNAIRE ON HOME LOANS

- 40 -

<S+ 'rom which financial institution have taken you )oan$ a+ -1'C c+ )!C e+ %tandard chartered+ b+ !C!C! d+ .ationali&ed banks

6S+ Which type of rate of interest have you opted 'or$ a+ 'i2ed b+'loating

8S+ (mount of loan you have taken$ a+ @7,777 # <,@7,777 c+ 6,@7,777 # above+ b+ <,@7,777-6,@7,777

9S+ Purpose of taking home loans$ a+ Purchase c+ 32tension b+ epairing d+ Construction+

@S+ Oour e2perience with the bank, from where you have taken loan$

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a+ Totally satisfied c+ .eutral e+ 1issatisfied+

b+ %atisfied d+ Totally satisfied

CS+ (re you interested in getting your home loan Transferred to another bank$ a+ Oes b+ .o+

BS+ !f yes do state why$ a+ 1ue to interest rate+ c+ 1ue to service b+ 1ue to mortgage d+ 1ue to 3M!+

?S+ (re you aware of the following new scheme )aunched by the financial institution$

a+ :riha )a2mi %cheme launched by )!C+ b+ Price less home launched by -1'C+ c+ ( home loan that is easy standard chartered bank+ d+ -ome is where the heart launched by %B!+ to get ; pay )aunched by

- 42 -

GS+ Which schemes tempt you most$

<7S Personal !nformation

ADDRESS OCCUPATION$ a. S'(7#+' 6. O)>'(" INCOME a. L'"" )>an 8;999 +. A5%7' :;999 GENDER a. Ma ' 5. F'&a ' 5. 8;9992:;999 5. B*"#n'"" +. P(%0'""#%na

AGE a. L'"" )>an D9 !'a(" 5. D9 A E9 !'a("

- 43 -

+. E9 A ;9 !'a(" 6. ;9 an6 a5%7'

PRIMARY DATA TABULATION AND INTERPRETATION 8F. F(%& G>#+> 0#nan+#a #n")#)*)#%n >a7' )a,'n !%* %anH -1'C %tandard Chartered )!C !C!C! @@ <@ 8@ 97

- 44 -

%B! 5thers TOTAL

87 6@ :99
0#nan+#a #n")#)*)#%n" -(%7#6#n/ >%&' %an"
-1'C %tandard Chartered )!C !C!C! <@ 97 8@ %B! 5thers

6@ 87

@@

In)'(-(')a)#%n$ @@ respondents have taken loan from -1'C+

:F. W>#+> )!-' %0 (a)' %0 #n)'('") >a7' !%* %-)'6 0%(H

'i2ed 'loating TOTAL

@7 <@7 :99

- 45 -

)!-' %0 (a)' %0 #n)'('")

@7 'i2ed 'loating <@7

In)'(-(')a)#%n$ Most respondents have opted for 'loating rate of interest+

DF. A&%*n) %0 %an !%* >a7' )a,'nH

@7,777 # <,@7,777 <,@7,777 # 6,@7,777 6,@7,777 - above TOTAL

@< C@ ?9 :99

- 46 -

A&%*n) %0 %an

@< ?9

@7,777 # <,@7,777 <,@7,777 -# 6,@7,777

C@

6,@7,777 - above

In)'(-(')a)#%n$ Most respondents have taken the loan amount above s+ 6,@7,777

EF. P*(-%"' %0 )a,#n/ >%&' %an"H

Purchase epairing 32tension Construction T5T()

B? 67 97 C6 :99

- 47 -

-*(-%"' %0 )a,#n/ %an"

C6

B?

Purchase epairing 32tension Construction

97

67

In)'(-(')a)#%n$ Ma2imum respondents have taken loan for purchasing of home loan+

;F. Y%*( '.-'(#'n+' G#)> )>' 5an,I 0(%& G>'(' !%* >a7' )a,'n %anH Totally satisfied %atisfied .eutral 1issatisfied Totally 1issatisfied TOTAL 6@ C7 67 B@ 67 :99

- 48 -

('"-%n6'n)" '.-'(#'n+' G#)> 5an,

Totally satisfied 67 6@ %atisfied .eutral B@ 67 C7 1issatisfied Totally 1issatisfied

In)'(-(')a)#%n4 (bout B@ respondent are dissatisfied from their banks from where they have taken loans+

JF.

A(' !%* #n)'('")'6 #n /'))#n/ !%*( >%&' %an )(an"0'(('6 )% an%)>'( 5an,H

Oes .o TOTAL

<7@ G@ :99

- 49 -

#n)'('")'6 #n /'))#n/ >%&' %an )(an"0'(

<7C <79 <76 <77 G? GC G9 G6 G7 Oes .o

In)'(-(')a)#%n4 Ma2imum respondents are ready for takeover MtransferringN their home loans to different

banks*corporations+

KF. I0 !'"I 6% ")a)' G>!H 1ue to interest rate 1ue to Mortgage 1ue to %ervice 1ue to 3M! TOTAL G@ 67 9@ 97 :99

- 50 -

('a"%n" 0%( )(an"0'((#n/ >%&' %an

97 G@ 9@ 67

1ue to interest rate 1ue to Mortgage 1ue to %ervice 1ue to 3M!

In)'(-(')a)#%n$ Ma2imum loan transferring is due to high interest rates charged by different banks+

LF. O++*-a)#%n

%ervice Business Professional 5thers TOTAL

@? @@ @9 88 :99

- 51 -

O++*-a)#%n

88 @? %ervice Business Professional @9 5thers @@

In)'(-(')a)#%n$ @? respondents are doing service+

MF. In+%&'

)ess than <@,777 <@,777 # 6@,777 6@,777 ; above TOTAL

97 G7 B7 :99

- 52 -

In+%&'

97 B7 )ess than <@,777 <@,777 # 6@,777 6@,777 ; above

G7

In)'(-(')a)#%n$ Most respondents have the income between <@,777 # 6@,777

89F. G'n6'( Male 'emale TOTAL <98 @B :99

- 53 -

G'n6'(

@B Male 'emale <98

In)'(-(')a)#%n$ Most respondents are male+

88F. A/' )ess than 87 yrs 87 # 97 yrs 97 # @7 yrs @7 ; above TOTAL 8? CG @? 8@ :99

- 54 -

a/'

8@

8?

)ess than 87 yrs 87 # 97 yrs 97 # @7 yrs CG @7 ; above

@?

In)'(-(')a)#%n$ CG respondents have the age between 87-97 yrs+

CROSSNBIVARIATE ? OTHER ANALYSIS + A) elationship between age ; bank Preferences for

housing loan hypothesis4 There is no significant association between the age of the respondent and the bank preferences for home loans+

Ta5 ' 8 BANKS ? AGE T%)a

- 55 -

CORPORATIONS L'"" HDFC LIC ICICI SBI OTHERS TOTAL )>an D9 <6M<9+99N ?M@+86N <<MG+8<N @M@+@<N 6M8+96N 8?

D92E9 88M6C+66N CMG+CCN <9M<C+G<N BM<7N GMC+6<N CG

E92;9 6<M66+7GN GM?+<6N <BM<9+6<N BM?+9<N 9M@+66N @?

;9?a5%7' <7M<8+8N @M9+GN BM?+@?N <7M@+7?N 8M8+<@N 8@ BC 6? 9G 6G <? 677

'igures in brackets in all the tables, represents the e2pected fre"uency+

MH6 N calculated T <@+C6

1egree of freedom T <6 T 6<+76C

Table value at @A significance level+

Table < reveals that majority of respondents prefer to take loans from -1'C+ BCM8?AN+The respondents age group 67 #8@ are ma2imum MCGN of which 88M<C+@AN take home loan from -1'C+ The calculated chi-s"uare M<@+C6N is less than the table valueM6<+76CN at @@ level+ -ence the hypothesis is

accepted +There is no significant association between age and banks+

- 56 -

B)

elationship between se2 and bank ; corporation for

home loans4 There is no significant association between se2 for of the

respondent and bank * corporations preference loans+ TABLE2 : SEO MALE

home

TOTA FEMAL E L BC 6? 9G 6G <? 677

BANKSNCORPORATIO NS -1'C )!C !C!C! %B! 5T-3 % T5T()

87M8?N <8M<9N 6GM69+@N CM<9+@N CMGN <77

9CM8?N <@M<9N 67M69+@N 68M<9+@N <6MGN <77

SOURCE$2P(#&a(! 6a)a N S*(7'! 6a)a

MH6 N calculated value degree of freedom

T<B+<6 T9

Table value at @A significance level+ TG+9??

- 57 -

Table

#6

reveals

that

out

of

<77M@7AN

female

respondents,9CM68AN prefer -1'C and out of <77M@7AN Male respondents ,87M@7AN prefer -1'C+

The calculated chi # s"uare value M<B+<6N is greater than table value MG+9??N at @A level of significance+ -ence the hypothesis is rejected+ There is significance association between se2 of

the respondents and banks*corporation for home loans+

- 58 -

C)

elationship between occupation of the respondent and

banks*corporation for home loans hypothesis4

There is no significant association between the occupation of the respondents and banks*corporation for home loans+

TABLE2D BANKS? CORPORATION HDFC LIC ICICI SBI OTHERS TOTAL OCCUPATION Sa a(#'6 B*"#n'" " 6<M66+79N 66M67+GN ?M?+<6N <<MB+BN <@M<9+6<N GM<8+9?N <8M?+9<N ?MB+G?N <M@+66N @M9+G@N ;L ;; T%)a P(%0'""#%na 69M67+@6N 8MB+@CN <BM<8+68N <MB+?8N GM9+?CN ;E O)>'(" GM<6+@9N CM9+C6N ?M?+7GN BM9+BGN 8M6+GBN DD KJ :L EM :M 8L :99

%ources4 primary data*survey data+ MH6 N calculated T 69+C6

1egree of freedom T <6 Table value at @A %ignificance level T 6<+76C

- 59 -

Table 8 represents that majority of respondents fall under salaried class @?M6GAN+ The calculated chi s"uare value M69+C6N is greater than the table valueM6<+76CN at @A level of significance + -ence the hypothesis is rejected i+e+ there is significant association between occupation of the respondents ; bank*corporation

preference for the home loans+

6)

elationship

between

!ncome

of

the

respondent

and

banks*corporations for home loan hypothesis+

There is no significant association between the income of the respondent and banks*corporations preferences for home loan+

- 60 -

TABLE E Ban,"N C%(-%(a)#%n" HDFC L.I.C I.C.I.C.I SBI O)>'(" T%)a In+%&'( R".NM%n)> ) L'"" )>an 8;9992 8;999 6< M<9+99N 6 M@+86N @ MG+8<N G M@+@<N < M8+96N DL :;999 8GM88+99N B M<6+86N 6GM6<+@CN 8 M<6+BCN <7 MB+G6N LL T%)a :;999?A5%7' <C M6?+<6N <G M<7+8CN <@ M<?+<8N <B M<7+B8N B MC+CCN KE KJ :L EM :M 8L :99

%50 C3 4 Primary 1ata*%urvey 1ata

Chi s"uare calculated valueT 9<+96 1egree of freedom T ? Table value at @A significance value T<@+@7B (s per table 9 respondent having income from @777<@777 are taking ma2imum loan and the majority of

respondents are taking loans from -1'C B(./+ -ere the calculated value of M 2 6 N 9<+96 is greater than the table value M<@+@7BN+ The hypothesis is rejected + %o there is significant association between various income groups their bank*corporation preferences+ ;

- 61 -

INTERPRETATION ? FINDINGS

This project is really an interesting project for me, while working on this project D -5M3 )5(. D ! met 677 respondent some were highly cooperative ; some were not + My survey is totally based on those people who have already taken loan + (fter completion of my survey ! found that ma2imum

number of loans are taken by service class for house+ !t is very interesting to find that -1'C, !C!C!, %B!, )!C are giving tough competition to each other+ 5ne interesting thing !

found is D departmental loan D employees are taking home loan from their departments at a low rate of interest + banks ; other intuitions are providing home loan to their employees t low rate of interest+ (t last ! got good response from respondents ; those people having income more than <7,777 can easily get their dream house at different rate of interest+

- 62 -

CONCLUSION -ome loans is one of the booming sector and adding a lot to our countryFs economy+ -1'C has emerged as the largest private sector bank for providing home loans at a reasonable rate of interest +5ther banks are also giving tough competition )!C + .ationali&ed 5 !3.T() B(./ banks 5' like %B!, ())(-(B(1 are B(./, providing to -1'C like !C!C!,%T(.1( 1 C-( T3 31,

C5MM3 C3

departmental loans at a very low rate of interest in housing loans and are doing wonders+ (t last, home loans have made possible for every person to have his or her own dream house+

SUGGESTIONS

- 63 -

There are some gray areas, which the corporations and banks needs to address before going any further in bringing in new schemes+ The problems which the survey has brought out are4

<N The business in the company is mainly agents or the agencies and the public

through the interaction of

the employees is very less in terms of advertising + so the general employees should also be encouraged to bring in business for the company+ This can be easily done by giving them some perks or some percentages or likes+

6N There should be a proper management of time for the customers+ e+g+ if a person application has been

rejected he should be immediately informed about it with no delays and similar things should be done for the applications re"uiring minor adjustments+

- 64 -

8N legal hassels should be handled with care because there are cases in which a person has to go through a lot of difficulties just because of minor mistakes in reporting of the information+

9N There should be "uick distribution of loan installment with red tappeism reduced to a minimum+

@N While assessing the repayment capacity future salary and perks of the employees should also be considered+

CN'ull information should be given before any change in the interest rates is done + this will increase the

credibility of the banks ; corporations+

BN The interest rates should remain competitive+

- 65 -

BIBLIOGRAPHY

WWW.GOOGLE.COM

TIMES OF INDIA

HINDUSTAN TIMES

BUSINESS WORLD