A

Research Report
Subject Code: 576221(76)

On

Consumer perception towards Home Loan

Submitted for partial fulfillment of requirement for the
award of degree
Of

Master of Business Administration

Of

CHHATTISGARH SWAMI VIVEKANAND TECHNICAL

UNIVERSTY
BHILAI (C.G.)
Session 2012-14

Supervision By:
Prof. Gazala Y. Ashraf
Assistant Professor
No.5057612094
Faculty of Management

Submitted by:
Sujeet Pandit
Roll
MBA II Semester
Section A

FACULTY OF MANAGEMENT
DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY
(Disha Education Society)
Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,

Raipur (C.G.) 492007

DECLARATION
I the undersigned solemnly declare that the report of the project work entitled
Consumer perception towards Home Loan, is based my own work carried out during
the course of my study under the supervision of Prof. Gazala Y. Ashraf.
I assert that the statements made and conclusions drawn are an outcome of the
project work. I further declare that to the best of my knowledge and belief that the project
report does not contain any part of any work which has been submitted for the award of
any other degree/diploma/certificate in this University or any other University.

__________________
Sujeet Pandit
Roll No.: 5057612094

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CERTIFICATE BY GUIDE
This to certify that the report of the project submitted is the outcome of the project
work entitled Consumer perception towards Home Loan carried out by Sujeet Pandit
bearing Roll No.:5057612094 & Enrollment No.:AK6995 carried by under my guidance and
supervision for the award of Degree in Master of Business Administration of Chhattisgarh
Swami Vivekananda Technical University, Bhilai (C.G), India.
To the best of the my knowledge the report
i)

Embodies the work of the candidate him/herself,

ii)

Has duly been completed,

iii)

Fulfils the requirement of the ordinance relating to the MBA degree of the
University and

iv)

Is up to the desired standard for the purpose of which is submitted.

_______________________
(Signature of the Guide)
Prof. Gazala Y. Ashraf
Asst. Prof.
Faculty of Management
DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY
Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,
Raipur (C.G.) 492007
The research report as mentioned above is hereby being recommended and forwarded for
examination and evaluation.

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CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled
Consumer perception towards Home Loan
Submitted by
Sujeet Pandit Roll No.:5057612094 Enrollments No.:AK6995.
Has been examined by the undersigned as apart of the examination for the award of Master of
Business Administration degree of Chhattisgarh Swami Vivekananda Technical University, Bhilai
(C.G.).

________________

__________________

________________

__________________

Name & Signature of

Name & Signature of

Internal Examiner

External Examiner

Date:

Date:

Forwarded by
Dean
Faculty of Management

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ACKNOWLEDGEMENT
The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely fortunate to have got this all along the completion of my
project work. Whatever I have done is only due to such guidance and assistance and I would
not forget to thank them.
I respect and thank Prof. Gazala Y. Ashraf, for giving me an opportunity to do the project
work in Consumer perception towards home loan and providing us all support and guidance
which made me complete the project on time. I am extremely grateful to her for providing
such a nice support and guidance though she had busy schedule.
I would not forget to remember Prof. Suresh Pattanayak, Prof Rupesh Kr. Tiwari and all
faculty members for their unlisted encouragement and more over for their timely support and
guidance till the completion of our project work.
I heartily thank our internal project guide, Dr.R.S.Mohan, Dean , Department of
Management, for his guidance and suggestions during this project work.
I am extremely thankful to all those persons who have positively helped me and customers
who respond my questionnaire, around whom the whole project cycle revolves.

Name: Sujeet Pandit

Roll.No.: 5057612094
MBA 2nd Sem
2nd Semester
Section-A

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PREFACE

This report presents the research, findings and recommendations resulting from the
project, Consumer perception towards Home Loan, supported by Prof. Gazala Y.
Ashraf and authored by the Dean. The objective was to compile and synthesize information
on the status of Consumer perception. In so doing, it lays the foundation for the development
of bank resources management decision support system that will facilitate scientifically
sound decision making. The involvement in this project reflects its long-term interest in
Consumer perception towards Home Loan management activities consistent with its mandate
to promote the orderly, integrated and comprehensive development, use and conservation of
the loan. This report has benefitted from the significant input and collaboration of numerous
partners that comprised a Project Management Team (PMT). The findings and
recommendations of this report address data and information gaps and needs, and provide
valuable information for guiding the next steps in the process of developing a decision
support system. This report, and the projects many associated components, provides a wealth
of information about the bank resources and associated policies.

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I.
II.
III.
IV.
V.

DECLARATION
CERTIFICATE BY GUIDE
CERTIFICATE BYTHE EXAMINERS
ACKNOWLEDGEMENT
PREFACE

INDEX
Sr. No.
Chapter 1

Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6

TITLE
1.1 Introduction
1.2 Objective of the Study
1.3 Scope & Limitations of the Study
1.4 Review of Literature
Product Profile
Research Methodology
Analysis and Interpretation
Finding and Suggestion
Conclusion
Bibliography
Appendix

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Page No.
8
14
15
16
18
21
41
57
58

1.1 Introduction
Over the last few decades the role of loan sector has undergone a paradigm shift. It is
widely recognized as an important aspect of the source of loan for the people and considered
it as a short and long-term investment.

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After zeroing down on my research area, I have collected information through only
primary. I had a constant discussion with consumer.
The objective of this report is to study Customer Perception and Attitude towards home
loan. For this survey was conducted through structured Questionnaire.
In todays competitive business world every customer is significant for the lending
home loan. The customer expectations are very high so it should be kept in mind and offer
them best possible service.
The report deal with the conceptual background of home loan and over view of the
banks, the next part deals with research design of the study that is problem identification,
objectives and how the research was carried out. The outcome of the study shows that the
level of customer awareness towards Home Loan is good with the benefits and service what
they are giving and most of the people wants to go for investments.
Banks can start some good promotional activities to build its brand and to make
recognition by all the peoples in the market .The effective marketing channel with the
personal selling is an essential factor in influencing banks growth.
INDUSTRY PROFILE
The importance of financial institutions in the modern economy cannot be neglected. They
occupy a very important place in the field of commerce and industry of any country. They are
so important that modern business is certainly impossible without them and number country
can achieve commercial and industrial progress in the absence of sound financial system.
These financial sectors have different products at different rates. The growing competition
between the financial institutions had made each of them to delight their customer rather than
satisfying them. The emergence of new generation private financial institutions has made the
entire financial sector tougher and much more competitive. They provide various services to
the customer to overcome the competition. Some of the major players in the sectors are:

1.

CitiFinancial

2.

ICICI bank

3.

HDFC bank

4.

PNB

5.

SBI and many more

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Financial institutions and their services offered:

ICICI bank:
ICICI Bank offers wide variety of Loans Products to suit the customer requirements. Coupled
with convenience of networks branches/ATMs and facility of E-channels like Internet and
Mobile Banking.

Home loan:
Attractive interest rates
Door-step service from enquiry stage till final disbursement
Can transfer the customer existing high-interest rate loan
Free personal accidental insurance
Special 100percentage funding for select properties
HDFC Bank:
Home loan:
Anew home brings with it new hopes, joys and emotions. At HDFC, we have shared new
hopes, joys and emotions with over 26 Lakh customers. Every customer has a specific and
unique concern. Having earned an experience of 27 years in home loans, our home loan
product is customized to provide the customer solutions for the customers unique concern.
Features:
Maximum loan 85percentage of the cost of the property (including the cost of the land) and
based on the repayment capacity of the customer.
Maximum Term 20 years subject to the customers retirement age.
Applicant and Co- Applicant to the loan Home Loans can be applied for either individually
or jointly. Proposed owners of the property will have to be co- applicants. However, the coapplicants need number be co-owners.
Adjustable Rate Home Loan under Adjustable Rate is linked to HDFC's Retail Prime

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Lending Rate (RPLR). The rate on the customers loan will be revised every three months
from the date of first disbursement, if there is a change in RPLR, the interest rate on the
customers loan may change. However, the EMI on the home loan disbursed will not
change*. If the interest rate increases, the interest component in an EMI will increase and the
principal component will reduce resulting in an extension of term of the loan, and vice versa
when the interest rate decreases.
Fixed

Rate without money market conditions- Rate of interest will not change. with money

market conditions- Rate of interest will not change due to money market conditions for two
years from the date of first disbursement of the loan.
Purchase of:O Flat,

row house, bungalow from developers

O Existing
O

freehold properties

Properties in an existing or proposed co-operative housing society or apartment owner's

association
O First Power

of Attorney purchases in Delhi for DDA flats allotted before 1992.

Self Construction
Features
Purpose
O External
O Tiling

repairs

and flooring

O Internal

and external painting

O Plumbing

and electrical work

O Waterproofing
O Grills

and roofing

and aluminum windows

O Waterproofing
O Construction
O Paving

on terrace

of underground/overhead water tank

of compound wall (with stone/tile/etc.)

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O Existing
O New

Customer 100percentage of the cost of improvement

Customer 5percentage of the cost of improvement

Adjustable Rate Home Loan

Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate
on the customers loan will be revised every three months from the date of first disbursement,
if there is a change in RPLR, the interest rate on the customers loan may change. However,
the EMI on the home loan disbursed will not change*. If the interest rate the interest
component in an EMI will increase and the principal component will reduce resulting in an
extension of term of the loan, and vice versa when the interest rate decreases.
Fixed Rate
With money market conditions- Rate of interest will not change due to money market
conditions for two years from the date of first disbursement of the loan*.
State Bank of India (SBI):
? HOUSING LOAN:
Home is where the heart is! At SBI, we understand this better than most the toil and sweat
that goes into building/ buying a house and the subsequent pride and joy of owning one. This
is why our Housing loan schemes are designed to make it simple for the customer to make a
choice at least as far as financing goes!
Unique features:
Number cap on maximum loan amount for purchase/ construction of house/ flat
Option to club income of the customers spouse and children to compute eligible loan
amount.
Provision to club expected rent accruals from property proposed to compute eligible loan
amount
Provision to finance cost of furnishing and consumer durables as part of project cost
Repayment permitted up to 70 years of age
Optional Group Insurance from SBI Life at confessional premium (Upfront premium
financed as part of project cost)
Interest applied on daily diminishing balance basis
Plus schemes which offer attractive packages with confessionals interest rates, margins and
processing fee to Govt. Employees, Teachers, Scientists, Employees in Oil sector, Journalists

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(in select cities) etc.

Special scheme to grant loans to finance Earnest Money Deposits to be paid to
Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/
flat
Option for E-banking
Need for the study:
Assets are insured; because they are likely to be destroyed through accidental occurrences
such possible occurrences are called perils. Fire floods breakdowns, lighting, and earth
quakes etc. If such perils can cause damage to the asset the asset is exposed to that risk.
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 uncertain. In the case of a
person who is terminally ill the time of death is not uncertain though not exactly known.
Insurance does not protect the asset. It does not prevent its loss due to the peril .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 loose and that too, not fully. Only economic consequences can be
insured. If the loss is not financial insurance may not be possible.

1.2 OBJECTIVES

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PRIMARY OBJECTIVE:

Analyzing the customers PERCEPTION on home loans offered by banks.

SECONDARY OBJECTIVES:
1. To find out various types of loan availed by customers in market.
2. To identify various branches of banks from where customer have availed
loans.
3. To evaluate the turnaround time for customer in availing their loans from
banks.
4. To identify whether any procedure problem were faced by the customer in
availing the loan.
5. To find out the preferred mode of repayment of customer with regarding their
loans availed from banks.
6. To find out the most attractive features that attracted the clients to avail loan
from banks.
7. To evaluate the customer satisfaction regarding various services offered at
banks.

HYPOTHESIS:
Quite often a research hypothesis is a predictive statement, capable of being tested by scientific
methods that relates and independent variable to some dependent variable.
The following hypotheses were set in order to achieve the objectives.

There is no significant relationship between the purpose of investment in insurance

and the annual income.

There is no significant relationship between the risk taken while investing and the
amount invested.

There is no significant relationship between age of the respondent and the risk taken
by them while investing.

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1.3 SCOPE AND LIMITATIONS OF THE STUDY SCOPE OF THE STUDY

The scope of the study is to analyze the satisfaction level of home loan customers in and
around India. The study gathers information about rating the effectiveness of bank services,
rating and ranking the different features and services offered by the bank.

Primary data was collected from the existing loan customers and also non existing customers;
secondary data was collected from book manuals, magazines and websites. The study has
come out with valuable suggestions on basis of concrete facts, which help to frame its plan
and strategies to increase satisfaction level of the loan customers.

LIMITATIONS OF THE STUDY

1.
2.

The study is limited to all over India.

Because of the limited time, research is conducted with only 80 customers.

3.

The data collected from the customer are qualitative in nature i.e., views, perception,

satisfaction, opinion etc., may change from time to time.

4.

The data collected are primary in nature. Hence there is chance for a biased of

misleading respondent from the customer.

5.

On few occasions customer were reluctant to give information, because they were

busy.

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1.4 REVIEW OF LITERATURE

The researcher has to refer few books and magazines to refer
few books and review for obtaining and understanding. The
relationship in customers satisfaction and quality of services. It was
also useful for knowing the customer satisfaction versus quality of
service offered by the concern.

The ICFAI journal of Monetary Economics, Numberv2004 it is

studied that greenwood and Jovanovich (1990) in their study analyzed
the role that financial institutions play in collecting and analyzing
information and use this information for utilizing funds by investing in
such projects that are high-risk while at the same time yield highest
return.

The ICFAI Journal of Service Marketing Dec2004 It is important to

note that whatever financial products are put in the market, it can only
be successful if customer has a need for it. Thus the need to study
customer behavior becomes paramount. This flows naturally from the
marketing concept that emphasis the idea of looking at the product
from the consumers point of view,

In Indian Journal of Marketing, May04 Marketing of Banking

Services in the Globalize Scenario Emerging Challenges- By Dr. V.
GOPALAKRISHNAN.

Banking services largely depends upon customer demands and their

perceived performance. In urban and metropolitan sectors customers
are more knowledge and demand more facilities than offered. They are

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looking for services that are cheaper, faster and qualitatively better

The STATISTICAL METHODS, By S. P. GUPTHA. S.P gives a very

in-depth study about the various statistical tools and techniques that
could be used for various researches work purposes. Each statistical
test has been discussed very much in detail and this book has acted as
the back bone for this research study by helping the research work in
using various statistical tools like chi-square, One way ANOVA test,
Two way ANOVA test etc.,

The Marketing Management -By PHILIP KOTLER, which is one of

the masterpieces in the field of marketing, has given an excellent
coverage in the various fields of marketing. The author has very
elaborately examine the various issues in designing the marketing
strategies for various companies, tactical marketing and also the
hurdles that arises in the administrative side of marketing which were
all very much useful in analyzing the various problems of this research
study and finally in also putting forth various feasible recommendation
and suggestion for this research work. This book has also presented
various frameworks for analyzing certain recurrent problem in the field
of marketing, which were also effectively used in this research work.

The RESEARCH MARKETING, By McGauran L.L. gives more stress

on the various categories of information that should be collected for
carrying out the preliminary investigation for the various research
studies. The author McGauran L.L. gives importance to six categories
of information that re to be used for preliminary investigation namely
a.

the product

b.
c.

the company, industry and competition

the market

d.

the channel of distribution

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e.
f.

the sales
the sales promotion policies.

Further this book also stresses on the pilot survey that should be
conducted before starting the original survey. Hence taking all this into
account, a preliminary
questionnaire

was

drafted and it was tested

among five customers.
The flows found in the
questionnaire were later
rectified after consulting
few experts too in this
field and finally the original questionnaire was drafted.

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2. PRODUCT PROFILE
The different services provided by Banks:
1. Home loan

Home Purchase Finance

Fund the customers dream home. Get the maximum loan up to a
95percentage of Agreement Value + 100percentage of Stamp Duty.
Loan up to Rs. 1 Crore*.
Home Loan Refinance with top-up
Free the customers money! Have the customers existing Home Loan

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bought over and enjoy extra cash up to 80percentage of market value of

the customers home. Loan up to Rs. 75 Lakh*.
Home Improvement Finance
If the customer is looking to renovate the customers home, get up to
95percentage of the cost estimate (subject to 50percentage of market
value). Get a loan up to Rs. 12 Lakhs*.
Home Extension Finance
Thinking of expanding the customers home? Get up to 95percentage of
the cost estimate
(Subject to 60 percentage of market value). Get a loan up to Rs. 30
Lakhs*.
The features of Home Loans:
The advantages of dealing with banks, one of the largest financial
conglomerates of the world are plenty:
Highest recognition of income in the industry
Specially designed for businessmen
Flexibility in procedural requirements
Easy income and property documentation criteria
Flexible property norms
Approved plans are not mandatory
Funding for Builder Flats
Hassle-free and fast service
2. Home return:
The customers home is more than just four walls and a roof that
provides shelter for the customer and the customers family. It is also a
valuable asset, which the customer can put to use while continuing to
occupy it. The banks Home Returns Plan offers the customer the
opportunity of getting a loan against the customers house/residential

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property for practically any purpose. With our friendly, flexible and fast
service, it is simply the best way to free the wealth locked up in the
customers property.
"Home Returns now brings the customer Mortgage Loans for
Education. This zero hassle loan helps the customer fund the
customers children's higher studies. Want to know how the customers
children can follow their dreams
Unmatched benefits of Banks Home Returns:
The advantage of dealing with banks one of the largest financial
conglomerates of the world, is plenty?
Amount of loan from Rs. 2 Lakh to Rs. 1 Crore*.
Loans against rented, vacant and self-occupied residential properties.
Loan up to 60 percentage of the market value of the customers
residential property. Term of loan up to a period of 15 years.
Flexible income criteria. Special schemes for businessmen.
Easy income and property documentation criteria.
Repayment on Equated Monthly Installments (EMIs) basis.
Loans can also be availed on property belonging to the customers
family members.
3.

Mortgages loan for education:

If money is what is standing between the customer and a world-class

education, worry not! Now banks help the customer to fund the
customers education by giving the customer a loan against the
customers home. So if the customer wants to pursue the customers
studies in India or overseas, the customer can do so now without any
financial worries.

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3. RESEARCH METHODOLOGY

RESEARCH DESIGN
The formidable problem that follows the task of defining the research
problem is the preparation of the design of the research project,
popularly known as Research Design. Research design is a plan,
structure and strategy of investigation conceived to obtain answers to
research questions and to control variance.
A research design can be defined as Arrangement of condition for
collection and analysis of data in the manner that aims to combine
relevance to the research purpose with economy in procedure. It
consists of the blue print for the collection measurement and analysis of
data. The research used here is descriptive research

DESCRIPTIVE RESEARCH
The researcher is interested in knowing the proportion of people in a
given population who has behaved in a particular manner, making
projections of certain thing and determining the relationship between

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two or more variables in some areas. As the set up has been well
structured and is a rigid one, which could not be changed by giving
sufficient thought in frail-ling question, deciding type of data to be
collected and procedure that has been used gives the, proof of using
description research. In descriptive research also there has been use of
cross sectional studies just because the researcher has taken only a
sample of elements from the given population. In the cross sectional
study the survey research has been selected, as a detailed study has to
be obtained from a sample of large population.
DATA COLLECTION METHOD
The data that is used in study in collected by two methods.
1.

Primary data

2.

Secondary data

Primary Data
The primary data does not exist already in records and publications.
The researcher has to gather primary data a fresh for a specific survey.
The primary data can be gathered by way of observation method where
the research mix with the people concerned with the use of particular
product and not important clauses by observing the respondents. The
second method of collection of primary data is by way of
experimentation method where some variables are allowed to vary
under a controlled environment and its cause and effect relationship is
studied.
The third method of collection of data is by way of conducting a
survey. This method is used for collection of primary data. The primary
data was collected from customers in India city. For this research study,
data was collected from various account holders of the CitiFinancial.
Data collection was carried out using personal interview method guided

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by questionnaire as follows:
. Open-ended questions
. Closed ended questions
. Dichotomous questions
. Multiple-choice questions
. Ranking questions
. Rating questions
SECONDARY DATA
It is needed for conducting this research work collected from the
various

business

magazines,

bank

brouchers,

statistical

and

management book, market research books etc. which are presented in

the literature various in details
SAMPLING DESIGN
The precision and accuracy of survey results are affected by the manner
in which the sample has been chosen. The first thing for a sample plan
is definition of the population to be investigated. Defining the
population is often one of the most difficult things to do in sampling.
Although ideal conditions might indicate threat the census would be
preferable, such ideal conditions rarely exist in the real world. A census
is not feasible practically, therefore sample is used.
Two of major advantages of using a sample rather than a census are
speed and timeliness. A survey based on sample takes much less time to
compete than based on census. In this particular research study sample
survey is done. Sample design is the most important heart of sample
planning. Sample design includes type of sample to use and the
appropriate sampling unit.

Measurement and Scaling

Likert scale has been used in this study to acquire the degree of
agreement and disagreement from the respondent about a particular

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category of decision that he makes while seeking loan. This scale has
been calibrated on the range of 1 to 5 where 1 indicates strong
agreeability and 5 denotes strong disagreeability with a certain category
of decision.
Entire questionnaire of 17 questions uses the same scale to acquire data.
The advantage of using Likert scale in this study is that it is very easy
to construct and administer.

Another important advantage is the

convenience for respondents to understand the procedure to respond to

the questions. Likert scale has a drawback that each question is formed
by 1 or 2 sentences. But in this study the customers wont mind
listening these 1 - 2 sentences to rate a category of decision which
expresses their agreeability or disagreeability for an issue while seeking
loan.

Quantitative Methods
A Telephonic Interview was selected as a tool to collect data from the
respondents due to the time and cost constraints. The questionnaire is
structured into 17 simple questions. The respondent is asked to rate his
agreeability and disagreeability on the scale of 1 to 5. The questionnaire
is attached as an annexure to this report. The questions are framed using
minimum financial jargon that customers should be comfortable with.

Analysis and Result

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1.

The decision based on, in processing an application of Home

Loan, received the following responses.

Frequency:
HL EZY 2 UNDRSTND

Valid

1.00
2.00

Frequency
10
24

Percent
12.5
30.0

Valid Percent
12.5
30.0

Cumulative
Percent
12.5
42.5

3.00

30

37.5

37.5

80.0

4.00

11

13.8

13.8

93.8
100.0

5.00

6.3

6.3

Total

80

100.0

100.0

From the 80 respondents nearly 12.5% responses generated shown

strong agreeability, 30.0% responses are generated agree,37.5%
responses generated natural, 13.8% responses generated disagree and
remaining 6.3% indicate that the customers strongly disagree that
application of Home Loan easy to understand.

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2.

The decision based on, mortgage process, received the

following responses.

Frequency:
MORTG PRCS

Valid

.00
1.00

Frequency
1
20

Percent
1.3
25.0

Valid Percent
1.3
25.0

Cumulative
Percent
1.3
26.3

2.00

29

36.3

36.3

62.5

3.00

19

23.8

23.8

86.3

4.00

10.0

10.0

96.3
100.0

5.00

3.8

3.8

Total

80

100.0

100.0

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From the 80 respondents nearly 25% responses generated shown strong

agreeability, 36.3% responses are generated agree, 23.8% responses
generated natural, 10% responses generated disagree and remaining
3.8% indicate that the customers strongly disagree that mortgage
process explain thoroughly.
3.

The decision based on, EMI fixed by bank, received the

following responses.

Frequency:
EMI FIX

Valid

1.00
2.00

Frequency
40
25

Percent
50.0
31.3

Valid Percent
50.0
31.3

Cumulative
Percent
50.0
81.3

3.00

5.0

5.0

86.3

4.00

7.5

7.5

93.8

5.00

6.3

6.3

100.0

Total

80

100.0

100.0

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From the 80 respondents nearly 50% responses generated shown strong

agreeability, 31.3% responses are generated agree, 5.0% responses
generated natural, 7.5% responses generated disagree and remaining
6.3% indicate that the customers strongly disagree that EMI fixed by
bank is correct.
4.

The decision based on, accessibility service received,

following responses.

Frequency:
SRVC RCVD

Valid

1.00
2.00
3.00
4.00

Frequency
21
20

Percent
26.3
25.0

Valid Percent
26.3
25.0

Cumulative
Percent
26.3
51.3

23
9

28.8
11.3

28.8
11.3

80.0
91.3

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5.00

8.8

8.8

Total

80

100.0

100.0

100.0

From the 80 respondents nearly 26.3% responses generated shown

strong agreeability, 25.0% responses are generated agree, 28.3%
responses generated natural, 11.3% responses generated disagree and
remaining 8.8% indicate that the customers strongly disagree that they
service received.
5.

The decision based on, Interest rates charged by Bank,

received the following responses

Frequency:
INTRST CHRG BY BNK

-3-

Valid

1.00
2.00

Frequency
23
25

Percent
28.8
31.3

Valid Percent
28.8
31.3

Cumulative
Percent
28.8
60.0

3.00

13

16.3

16.3

76.3

4.00

16

20.0

20.0

96.3

5.00

3.8

3.8

100.0

Total

80

100.0

100.0

From the 80 respondents nearly 28.8% responses generated shown

strong agreeability, 31.3% responses are generated agree, 16.3%
responses generated natural, 20.0% responses generated disagree and
remaining

3.8% indicate that the customers strongly disagree that

interest charged by bank is correct.

6.

The decision based on, favor in Home Loan, received the

following responses.

Frequency:

-3-

HL FVOR

Valid

1.00
2.00

Frequency
27
33

Percent
33.8
41.3

Valid Percent
33.8
41.3

Cumulative
Percent
33.8
75.0

3.00

10

12.5

12.5

87.5

4.00

8.8

8.8

96.3

5.00

3.8

3.8

100.0

Total

80

100.0

100.0

From the 80 respondents nearly 33.8% responses generated shown

strong agreeability, 41.3% responses are generated agree, 12.5%
responses generated natural, 8.8% responses generated disagree and
remaining 3.8% indicate that the customers strongly disagree that how
much people are in favor of home loan.

-3-

7.

The decision based on, Documentation Procedure of Bank,

received the following responses.

Frequency:
DOC PRCZER

Valid

1.00
2.00

Frequency
14
30

Percent
17.5
37.5

Valid Percent
17.5
37.5

Cumulative
Percent
17.5
55.0

3.00

22

27.5

27.5

82.5

4.00

10.0

10.0

92.5
100.0

5.00

7.5

7.5

Total

80

100.0

100.0

From the 80 respondents nearly 17.5% responses generated shown

strong agreeability, 37.3% responses are generated agree, 27.5%
responses generated natural, 10.0% responses generated disagree and

-3-

remaining

7.5% indicate that the customers strongly disagree that

document procedure is correct.

8.

The decision based on, Processing Fees of Bank, received the

following responses.

Frequency:
PRCZING FEES

Valid

1.00
2.00

Frequency
6
16

Percent
7.5
20.0

Valid Percent
7.5
20.0

Cumulative
Percent
7.5
27.5

3.00

26

32.5

32.5

60.0

4.00

25

31.3

31.3

91.3

5.00

8.8

8.8

100.0

Total

80

100.0

100.0

-3-

From the 80 respondents nearly 7.5% responses generated shown

strong agreeability, 20.0% responses are generated agree, 32.5%
responses generated natural, 31.3% responses generated disagree and
remaining

8.8% indicate that the customers strongly disagree that

processing fees is true.

9.

The decision based on, Sanctioning Procedure, received the

following responses.

Frequency:
SENCTION PRCZER

Valid

1.00
2.00

Frequency
6
10

Percent
7.5
12.5

Valid Percent
7.5
12.5

Cumulative
Percent
7.5
20.0

3.00

23

28.8

28.8

48.8

4.00

32

40.0

40.0

88.8

5.00

11.3

11.3

100.0

Total

80

100.0

100.0

-3-

From the 80 respondents nearly 7.5% responses generated shown

strong agreeability, 12.5% responses are generated agree, 28.8%
responses generated natural, 40.0% responses generated disagree and
remaining 11.3% indicate that the customers strongly disagree that
document procedure is correct.
10.

The decision based on, Sanctioning Time, received the

following responses.

Frequency:
SENCTION TIME

Valid

1.00
2.00

Frequency
3
12

Percent
3.8
15.0

Valid Percent
3.8
15.0

Cumulative
Percent
3.8
18.8

3.00

18

22.5

22.5

41.3

4.00

23
24

28.8
30.0

28.8
30.0

70.0
100.0

5.00

-3-

Total

80

100.0

100.0

From the 80 respondents nearly 3.8% responses generated shown

strong agreeability, 15.0% responses are generated agree, 22.5%
responses generated natural, 28.8% responses generated disagree and
remaining 30.0% indicate that the customers strongly disagree about
sanctioning time.
11.

The decision based on, Fore Closure Charges, received the

following responses.

Frequency:
4 CLZR CHRGD

Valid

1.00

Frequency
7

Percent
8.8

-3-

Valid Percent
8.8

Cumulative
Percent
8.8

2.00

7.5

7.5

16.3

3.00

25

31.3

31.3

47.5

4.00

15

18.8

18.8

66.3

5.00

27

33.8

33.8

100.0

Total

80

100.0

100.0

From the 80 respondents nearly 8.8% responses generated shown

strong agreeability, 7.5% responses are generated agree, 31.3%
responses generated natural, 18.8% responses generated disagree and
remaining 33.8% indicate that the customers strongly disagree about
Fore Closure Charges.
12.

The decision based on, sanctioning is going online, received

the following responses.

Frequency:
ONLINE

-3-

Valid

.00
1.00

Frequency
1
34

Percent
1.3
42.5

Valid Percent
1.3
42.5

Cumulative
Percent
1.3
43.8

2.00

11.3

11.3

55.0

3.00

18

22.5

22.5

77.5

4.00

6.3

6.3

83.8

5.00

13

16.3

16.3

100.0

Total

80

100.0

100.0

From the 80 respondents nearly 42.5% responses generated shown

strong agreeability, 11.3% responses are generated agree, 22.5%
responses generated natural, 6.3% responses generated disagree and
remaining 16.3% indicate that the customers strongly disagree that
home loan is going online.

-3-

13.

The decision based on, interest charged by bank should be

different on the basis of income level, received the following
responses.

Frequency:
INTRST AS INCME LVL

Valid

1.00
2.00

Frequency
15
8

Percent
18.8
10.0

Valid Percent
18.8
10.0

Cumulative
Percent
18.8
28.8

3.00

21

26.3

26.3

55.0

4.00

13

16.3

16.3

71.3

5.00

23

28.8

28.8

100.0

Total

80

100.0

100.0

From the 80 respondents nearly 18.8% responses generated shown

strong agreeability, 10.0% responses are generated agree, 26.3%
responses generated natural, 16.3% responses generated disagree and

-3-

remaining 28.8% indicate that the customers strongly disagree that

should interest charged by bank should be different on the basis of
income level.
14.

The decision based on, Seize of asset facility by bank is the

right step, in case of nonpayment of EMI, received the
following responses.

Frequency:
SIZ WHL NNP EMI

Valid

.00
1.00

Frequency
1
17

Percent
1.3
21.3

Valid Percent
1.3
21.3

Cumulative
Percent
1.3
22.5

2.00

21

26.3

26.3

48.8

3.00

14

17.5

17.5

66.3

4.00

11

13.8

13.8

80.0

5.00

16

20.0

20.0

100.0

Total

80

100.0

100.0

-3-

From the 80 respondents nearly 21.3% responses generated shown

strong agreeability, 26.3% responses are generated agree, 17.5%
responses generated natural, 13.8% responses generated disagree and
remaining 20.0% indicate that the customers strongly disagree that
Seize of asset facility by bank is the right step, in case of nonpayment
of EMI is true.
15.

The decision based on, facility provides by the bank,

received the following responses.

Frequency:
FCLTY PRVD BANK

Valid

.00
1.00

Frequency
4
8

Percent
5.0
10.0

Valid Percent
5.0
10.0

Cumulative
Percent
5.0
15.0

2.00

12

15.0

15.0

30.0

3.00

18

22.5

22.5

52.5

4.00

31

38.8

38.8

91.3

5.00

8.8

8.8

100.0

Total

80

100.0

100.0

-3-

From the 80 respondents nearly 10.0% responses generated shown

strong agreeability, 15.0% responses are generated agree, 22.5%
responses generated natural, 38.8% responses generated disagree and
remaining 8.8% indicate that the customers strongly disagree that they
satisfy with facility provide by the bank.
16.

The decision based on, prefer public sectors bank for home
Loan, received the following responses.

Frequency:
PUBLIC SECTOR

Valid

1.00
2.00

Frequency
35
19

Percent
43.8
23.8

Valid Percent
43.8
23.8

Cumulative
Percent
43.8
67.5

3.00

6.3

6.3

73.8

4.00

14

17.5

17.5

91.3

5.00

8.8

8.8

100.0

Total

80

100.0

100.0

-3-

From the 80 respondents nearly 43.8% responses generated shown

strong agreeability, 23.8% responses are generated agree, 6.3%
responses generated natural, 17.5% responses generated disagree and
remaining 8.8% indicate that the customers strongly disagree that how
much people like to prefer public sectors bank for home Loan.
17.

The decision based on, prefer private sectors bank for home
Loan, received the following responses.

Frequency:
PRIVATE SECTOR

Valid

1.00
2.00

Frequency
26
20

Percent
32.5
25.0

Valid Percent
32.5
25.0

Cumulative
Percent
32.5
57.5

3.00

8.8

8.8

66.3

4.00

12
15

15.0
18.8

15.0
18.8

81.3
100.0

5.00

-3-

Total

80

100.0

100.0

Fr
o
m the 80 respondents nearly 32.5% responses generated shown strong
agreeability, 25.0% responses are generated agree, 8.8% responses

generated natural, 15.0% responses generated disagree and remaining

18.8% indicate that the customers strongly disagree how much people
like to prefer public sectors bank for home Loan.

-3-

-3-

4. INTERPRETATION AND DATA ANALYSIS

1. FACTOR ANALYSIS
SPSS commands for factor Analysis
This page shows an example of a factor analysis with footnotes
explaining the output. The data used in this example were collected
by Professor James Sidanius, who has generously shared them with
us. You can download the data set here.
Overview: The "what" and "why" of factor analysis.
Factor analysis is a method of data reduction. It does this by
seeking underlying unobservable (latent) variables that are reflected
in the observed variables (manifest variables). There are many
different methods that can be used to conduct a factor analysis (such
as principal axis factor, maximum likelihood, generalized least
squares, unweighted least squares), There are also many different
types of rotations that can be done after the initial extraction of
factors, including orthogonal rotations, such as varimax and
equimax, which impose the restriction that the factors cannot be
correlated, and oblique rotations, such as promax, which allow the
factors to be correlated with one another. You also need to
determine the number of factors that you want to extract. Given the
number of factor analytic techniques and options, it is not surprising
that different analysts could reach very different results analyzing
the same data set. However, all analysts are looking for simple
structure. Simple structure is pattern of results such that each
variable loads highly onto one and only one factor.
The determination of the number of factors to extract should be
guided by theory, but also informed by running the analysis
extracting different numbers of factors and seeing which number of
factors yields the most interpretable results.
Descriptive Statistics
Mean

Std. Deviation

Analysis N

HL EZY 2 UNDRSTND

2.7125

1.05775

80

MORTG PRCS

2.2750

1.10207

80

EMI FIX

1.8875

1.19061

80

SRVC RCVD

2.5125

1.24264

80

-3-

INTRST CHRG BY BNK

2.3875

1.20646

80

HL FVOR

2.0750

1.07650

80

DOC PRCZER

2.5250

1.12481

80

PRCZING FEES

3.1375

1.07614

80

SENCTION PRCZER

3.3500

1.08032

80

SENCTION TIME

3.6625

1.16862

80

4 CLZR CHRGD

3.6125

1.26785

80

ONLINE

2.3875

1.51360

80

INTRST AS INCME LVL

3.2625

1.45605

80

SIZ WHL NNP EMI

2.8125

1.46774

80

FCLTY PRVD BANK

3.0625

1.32497

80

PUBLIC SECTOR

2.2375

1.39841

80

PRIVATE SECTOR

2.6250

1.52925

80

The table above is output because we used the univariate option on

the /print subcommand. Please note that the only way to see how
many cases were actually used in the factor analysis is to include
the univariate option on the /print subcommand. The number of cases
used in the analysis will be less than the total number of cases in the
data file if there are missing values on any of the variables used in the
factor analysis, because, by default, SPSS does a list wise deletion of
incomplete cases. If the factor analysis is being conducted on the
correlations (as opposed to the co variances), it is not much of a
concern that the variables have very different means and/or standard
deviations (which is often the case when variables are measured on
different scales).
a. Mean - These are the means of the variables used in the factor
analysis.
b. Std. Deviation - These are the standard deviations of the variables
used in the factor analysis.
c. Analysis N - This is the number of cases used in the factor analysis.
The table above is included in the output because we used
the dot option on the /print subcommand. All we want to see in this
table is that the determinant is not 0. If the determinant is 0, then there

-3-

will be computational problems with the factor analysis, and SPSS may
issue a warning message or be unable to complete the factor analysis.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Bartlett's Test of
Sphericity

Approx. Chi-Square

.625
591.314

df

136

Sig.

.000

a. Kaiser-Meyer-Olkin Measure of Sampling Adequacy - This

measure varies between 0 and 1, and values closer to 1 are better. A
value of .6 is a suggested minimum.
b. Bartlett's Test of Sphericity - This tests the null hypothesis that the
correlation matrix is an identity matrix. An identity matrix is matrix in
which all of the diagonal elements are 1 and all off diagonal elements
are 0. You want to reject this null hypothesis.
Taken together, these tests provide a minimum standard which should
be passed before a factor analysis (or a principal components analysis)
should be conducted.

Communalities
Initial
1.000
1.000

Extraction
.675
.798

EMI FIX

1.000

.702

SRVC RCVD

1.000

.778

INTRST CHRG BY BNK

1.000

.773

HL FVOR

1.000

.800

DOC PRCZER

1.000

.851

PRCZING FEES

1.000

.638

SENCTION PRCZER

1.000

.761

SENCTION TIME

1.000

.839

4 CLZR CHRGD

1.000

.683

ONLINE

1.000

.713

INTRST AS INCME LVL

1.000

.609

SIZ WHL NNP EMI

1.000

.815

FCLTY PRVD BANK

1.000

.604

PUBLIC SECTOR

1.000

.783

HL EZY 2 UNDRSTND
MORTG PRCS

-3-

PRIVATE SECTOR

1.000
.714
Extraction Method: Principal Component Analysis.

a. Communalities - This is the proportion of each variable's variance

that can be explained by the factors (e.g., the underlying latent
continua). It is also noted as h 2 and can be defined as the sum of
squared factor loadings for the variables.
b. Initial - With principal factor axis factoring, the initial values on the
diagonal of the correlation matrix are determined by the squared
multiple correlation of the variable with the other variables.
c. Extraction - The values in this column indicate the proportion of
each variable's variance that can be explained by the retained factors.
Variables with high values are well represented in the common factor
space, while variables with low values are not well represented. (In this
example, we don't have any particularly low values.) They are the
reproduced variances from the factors that you have extracted. You can
find these values on the diagonal of the reproduced correlation matrix.

Total Variance Explained

Compo
nent

Initial Eigenvalues
% of
Cumulativ
Total
Variance
e%

Extraction Sums of Squared

Loadings
% of
Cumulative
Total
Variance
%

Rotation Sums of Squared

Loadings
% of
Cumulative
Total
Variance
%

4.376

25.738

25.738

4.376

25.738

25.738

2.631

15.475

15.475

2.765

16.268

42.006

2.765

16.268

42.006

2.463

14.486

29.961

1.930

11.355

53.361

1.930

11.355

53.361

2.392

14.071

44.032

1.260

7.409

60.770

1.260

7.409

60.770

2.029

11.933

55.964

1.112

6.541

67.311

1.112

6.541

67.311

1.683

9.898

65.862

1.094

6.433

73.744

1.094

6.433

73.744

1.340

7.882

73.744

.736

4.329

78.073

.689

4.055

82.129

.634

3.728

85.857

10

.519

3.054

88.911

-3-

11

.466

2.743

91.654

12

.407

2.396

94.050

13

.290

1.705

95.755

14

.246

1.446

97.201

15

.215

1.266

98.468

16

.152

.895

99.363

17

.108

.637

100.000

Extraction Method: Principal Component Analysis.

a. Factor - The initial number of factors is the same as the number of

variables used in the factor analysis. However, not all 17 factors will
be retained. In this example, only the first three factors will be retained
(as we requested).
b. Initial Eigenvalues - Eigenvalues are the variances of the factors.
Because we conducted our factor analysis on the correlation matrix, the
variables are standardized, which means that the each variable has a
variance of 1, and the total variance is equal to the number of variables
used in the analysis, in this case, 17.
c. Total - This column contains the eigenvalues. The first factor will
always account for the most variance (and hence have the highest
eigenvalue), and the next factor will account for as much of the left
over variance as it can, and so on. Hence, each successive factor will
account for less and less variance.
d. % of Variance - This column contains the percent of total variance
accounted for by each factor.
e. Cumulative % - This column contains the cumulative percentage of
variance accounted for by the current and all preceding factors. For
example, the 6 row shows a value of 73.74. This means that the first 6
factors together account for 73.74% of the total variance.
f. Extraction Sums of Squared Loadings - The number of rows in
this panel of the table correspond to the number of factors retained. In
this example, we requested that three factors be retained, so there are

-3-

three rows, one for each retained factor. The values in this panel of the
table are calculated in the same way as the values in the left panel,
except that here the values are based on the common variance. The
values in this panel of the table will always be lower than the values in
the left panel of the table, because they are based on the common
variance, which is always smaller than the total variance.
g. Rotation Sums of Squared Loadings - The values in this panel of
the table represent the distribution of the variance after the varimax
rotation. Varimax rotation tries to maximize the variance of each of the
factors, so the total amount of variance accounted for is redistributed
over the three extracted factors.

Total Variance Explained

Rotation Sums of Squared Loadings
Factor
1
2

Total
2.321
2.216

% of Variance
13.651
13.034

Cumulative %
13.651
26.686

1.788

10.520

37.206

1.707

10.044

47.249

1.366

8.037

55.286

.944
5.555
60.841
Extraction Method: Principal Axis Factoring.

-3-

Reproduced Correlations

HL EZY 2
UNDRSTND
Reproduced Correlation

HL EZY 2 UNDRSTND

EMI FIX

SRVC
RCVD

INTRST
CHRG BY
BNK

HL
FVOR

.675(b)

.322

.448

-.002

.319

.150

.322

.798(b)

.667

.329

.456

.074

MORTG PRCS
EMI FIX

.448

.667

.702(b)

.416

.608

.303

-.002

.329

.416

.778(b)

.543

.578

INTRST CHRG BY BNK

.319

.456

.608

.543

.773(b)

.427

HL FVOR

.150

.074

.303

.578

.427

.800(b)

DOC PRCZER

.176

.670

.535

.505

.357

.079

PRCZING FEES

.167

.316

.304

.420

.338

.057

SENCTION PRCZER

.167

.217

.172

.299

.201

.006

SENCTION TIME

.111

-.035

.017

.276

.185

.039

4 CLZR CHRGD

-.122

-.091

-.100

.266

.085

.121

.208

-.060

-.090

-.281

-.297

.094

-.342

-.312

-.389

-.087

-.402

.097

.114

.115

-.007

-.078

-.291

.148

SRVC RCVD

ONLINE
INTRST AS INCME LVL
SIZ WHL NNP EMI
FCLTY PRVD BANK

Residual(a)

MORTG
PRCS

-.384

-.295

-.415

-.022

-.493

-.044

PUBLIC SECTOR

.265

-.166

.046

.212

.093

.219

PRIVATE SECTOR

.259

.318

.372

.034

.475

.124

.040

-.082

.096

-.062

.014

-.103

-.045

-.051

.069

.031

-.109

-.044

-.134

HL EZY 2 UNDRSTND
MORTG PRCS
EMI FIX

.040
-.082

-.103

.096

-.045

-.062

-.051

.031

-.044

.014

.069

-.109

-.134

-.079

-.058

-.062

-.018

-.030

-.014

.014

SRVC RCVD
INTRST CHRG BY BNK
HL FVOR
DOC PRCZER
PRCZING FEES

.000
.000

-.079

.035

-.017

-.133

-.028

.030

.054

SENCTION PRCZER

-.034

-.044

-.003

-.001

-.073

.058

SENCTION TIME

-.016

.000

.019

-.016

.044

.002

4 CLZR CHRGD

.019

.096

.079

-.010

-.027

-.035

-.130

-.073

.037

.073

.068

-.089

ONLINE
INTRST AS INCME LVL
SIZ WHL NNP EMI

.080

.014

-.002

-.002

-.025

-.045

-.084

-.005

-.006

-.057

.054

.006

FCLTY PRVD BANK

.099

-.038

.019

.025

.050

-.004

PUBLIC SECTOR

-.166

.033

.038

-.028

-.013

-.062

PRIVATE SECTOR

-.068

-.038

-.062

.009

-.079

.016

Contd..

-3-

DOC
PRCZE
R
Reproduced Correlation

HL EZY 2 UNDRSTND
MORTG PRCS
EMI FIX
SRVC RCVD
INTRST CHRG BY BNK
HL FVOR
DOC PRCZER
PRCZING FEES
SENCTION PRCZER
SENCTION TIME
4 CLZR CHRGD
ONLINE
INTRST AS INCME LVL
SIZ WHL NNP EMI
FCLTY PRVD BANK
PUBLIC SECTOR
PRIVATE SECTOR

Residual(a)

HL EZY 2 UNDRSTND
MORTG PRCS
EMI FIX
SRVC RCVD
INTRST CHRG BY BNK
HL FVOR

SENCTION PRCZER
SENCTION TIME
4 CLZR CHRGD
ONLINE
INTRST AS INCME LVL
SIZ WHL NNP EMI
FCLTY PRVD BANK
PUBLIC SECTOR
PRIVATE SECTOR

SENCTIO
N PRCZER

SENCTIO
N TIME

4 CLZR
CHRGD

ONLINE

0.176

0.167

0.167

0.111

-0.122

0.208

0.67

0.316

0.217

-0.035

-0.091

-0.06

0.535

0.304

0.172

0.017

-0.1

-0.09

0.505

0.42

0.299

0.276

0.266

-0.281

0.357

0.338

0.201

0.185

0.085

-0.297

0.079

0.057

0.006

0.039

0.121

0.094

.851(b)

0.579

0.469

0.277

0.111

-0.231

0.579

.638(b)

0.622

0.6

0.366

-0.277

0.469

0.622

.761(b)

0.741

0.573

-0.044

0.277

0.6

0.741

.839(b)

0.635

-0.132

0.111

0.366

0.573

0.635

.683(b)

0.032

-0.231

-0.277

-0.044

-0.132

0.032

.713(b)

-0.282

-0.261

-0.061

-0.062

0.243

0.4

0.052

-0.125

0.096

-0.072

0.123

0.686

-0.029

-0.032

0.09

0.094

0.226

0.186

0.154

0.334

0.242

0.384

0.036

-0.177

-0.071

-0.087

-0.076

-0.13

-0.03

0.043

-0.058

0.035

-0.034

-0.016

0.019

-0.13

-0.062

-0.017

-0.044

0.096

-0.073

-0.018

-0.133

-0.003

0.019

0.079

0.037

-0.03

-0.028

-0.001

-0.016

-0.01

0.073

-0.014

0.03

-0.073

0.044

-0.027

0.068

0.014

0.054

0.058

0.002

-0.035

-0.089

-0.064

0.034

0.014

-0.038

0.058

-0.076

-0.08

-0.066

0.003

-0.14

-0.033

-0.084

-0.029

DOC PRCZER
PRCZING FEES

PRCZIN
G FEES

-0.064
0.034

-0.076

0.014

-0.08

-0.045

-0.045

-0.038

-0.066

-0.14

-0.084

0.058

0.003

-0.033

-0.029

0.034

0.034

0.042

0.019

0.05

-0.005

-0.091

-0.119

-0.046

0.045

-0.03

0.042

-0.034

-0.106

-0.036

-0.027

-0.017

0.026

-0.03

0.022

0.055

-0.079

0.021

-0.032

0.038

0.031

0.084

-0.005

0.087

-0.013

-0.124

-0.001

Contd

-3-

Reproduced Correlation

HL EZY 2 UNDRSTND
MORTG PRCS
EMI FIX
SRVC RCVD
INTRST CHRG BY BNK
HL FVOR
DOC PRCZER
PRCZING FEES
SENCTION PRCZER
SENCTION TIME
4 CLZR CHRGD
ONLINE
INTRST AS INCME LVL
SIZ WHL NNP EMI
FCLTY PRVD BANK
PUBLIC SECTOR
PRIVATE SECTOR

Residual(a)

HL EZY 2 UNDRSTND
MORTG PRCS
EMI FIX
SRVC RCVD
INTRST CHRG BY BNK
HL FVOR
DOC PRCZER
PRCZING FEES
SENCTION PRCZER
SENCTION TIME
4 CLZR CHRGD
ONLINE

SIZ WHL
NNP EMI

-0.342

0.114

-0.384

0.265

0.259

-0.312

0.115

-0.295

-0.166

0.318

-0.389

-0.007

-0.415

0.046

0.372

-0.087

-0.078

-0.022

0.212

0.034

-0.402

-0.291

-0.493

0.093

0.475

FCLTY PRVD BANK

PUBLIC SECTOR
PRIVATE SECTOR

PUBLIC
SECTOR

PRIVATE
SECTOR

0.097

0.148

-0.044

0.219

0.124

-0.282

0.052

-0.029

0.154

-0.071

-0.261

-0.125

-0.032

0.334

-0.087

-0.061

0.096

0.09

0.242

-0.076

-0.062

-0.072

0.094

0.384

-0.13

0.243

0.123

0.226

0.036

-0.03

0.4

0.686

0.186

-0.177

0.043

.609(b)

0.47

0.471

-0.259

-0.177

0.47

.815(b)

0.346

-0.193

-0.086

0.471

0.346

.604(b)

0.028

-0.517

-0.259

-0.193

0.028

.783(b)

-0.391

-0.177

-0.086

-0.517

-0.391

.714(b)

0.08

-0.084

0.099

-0.166

-0.068

0.014

-0.005

-0.038

0.033

-0.038

-0.002

-0.006

0.019

0.038

-0.062

-0.002

-0.057

0.025

-0.028

0.009

-0.025

0.054

0.05

-0.013

-0.079

-0.045

0.006

-0.004

-0.062

0.016

0.042

-0.046

-0.036

0.055

0.084

0.019

0.045

-0.027

-0.079

-0.005

0.05

-0.03

-0.017

0.021

0.087

-0.005

0.042

0.026

-0.032

-0.013

-0.091

-0.034

-0.03

0.038

-0.124

-0.119

-0.106

0.022

0.031

-0.001

-0.032

-0.204

0.06

-0.017

-0.054

0.03

0.004

-0.071

0.122

INTRST AS INCME LVL

SIZ WHL NNP EMI

FCLTY
PRVD
BANK

INTRST AS
INCME LVL

-0.032
-0.204

-0.054

0.06

0.03

-0.071

-0.017

0.004

0.122

0.125
0.125

Extraction Method: Principal Component Analysis.

a Residuals are computed between observed and reproduced correlations. There are
53 (38.0%) nonredundant residuals with absolute values greater than 0.05.
b Reproduced communalities

-3-

a. Reproduced Correlations - This table contains two tables, the

reproduced correlations in the top part of the table, and the residuals in
the bottom part of the table.
b. Reproduced Correlation - The reproduced correlation matrix is the
correlation matrix based on the extracted factors. You want the values
in the reproduced matrix to be as close to the values in the original
correlation matrix as possible. This means that the residual matrix,
which contains the differences between the original and the reproduced
matrix to be close to zero. If the reproduced matrix is very similar to
the original correlation matrix, then you know that the factors that were
extracted accounted for a great deal of the variance in the original
correlation matrix, and these few factors do a good job of representing
the original data. The numbers on the diagonal of the reproduced
correlation matrix are presented in the Communalities table in the
column labeled Extracted.
c. Residual - As noted in the first footnote provided by SPSS (a.), the
values in this part of the table represent the differences between original
correlations (shown in the correlation table at the beginning of the
output) and the reproduced correlations, which are shown in the top
part of this table.
Factor Transformation Matrix
Factor
1
2

2
.457
.736

.512
-.603

.529
-.030

4
-.282
.180

6
.386
.010

.141
.247

-.019

.105

.308

.874

.207

-.293

-.076

-.060

-.509

-.019

.855

-.003

.443

.566

-.601

.177

-.276

-.126

-.217
.198
-.060
.303
-.031
Extraction Method: Principal Axis Factoring.
Rotation Method: Varimax with Kaiser Normalization.

.904

5
6

-3-

a. Factor Transformation Matrix - This is the matrix by which you

multiply the unrotated factor matrix to get the rotated factor matrix.

Rotated Factor Matrix(a)

Factor
1

HL EZY 2 UNDRSTND
MORTG PRCS

.058
.025

.503
.464

.133
.661

.115
.035

.025
.095

.157
-.172

EMI FIX

.015

.603

.432

-.016

.293

.038

SRVC RCVD

.250

.012

.325

-.195

.771

.018

INTRST CHRG BY BNK

.178

.637

.148

-.270

.477

-.051

HL FVOR

.035

.148

-.005

.142

.593

.090

DOC PRCZER

.277

.101

.857

-.095

.143

.117

PRCZING FEES

.549

.104

.361

-.193

.123

.155

SENCTION PRCZER

.748

.034

.282

.038

.021

.110

SENCTION TIME

.919

.011

-.016

-.084

.030

.197

4 CLZR CHRGD

.605

-.167

-.038

.080

.168

-.078

ONLINE

-.075

-.016

-.131

.659

-.042

-.046

INTRST AS INCME LVL

.016

-.453

-.195

.409

.063

-.183

SIZ WHL NNP EMI

.041

-.114

.131

.909

.039

-.058

FCLTY PRVD BANK

.133

-.615

-.034

.231

.000

.014

PUBLIC SECTOR

.198

.001

.012

-.141

.125

.804

-.087
.556
-.028
Extraction Method: Principal Axis Factoring.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 6 iterations.
Factor Matrix(a)

-.008

.089

-.312

PRIVATE SECTOR

Factor
1
HL EZY 2 UNDRSTND
MORTG PRCS

.416
.639

2
-.181
-.208

EMI FIX

.701

SRVC RCVD
INTRST CHRG BY BNK

3
.185
.292

4
-.162
-.261

-.242

.225

.582

.298

.780

-.184

HL FVOR

.293

DOC PRCZER

.662

.311
-.231

-.065
.216

-.034

.019

.097

.124

.485

-.165

.199

.043

.273

-.070

-.173

.061

.312

.489

.152

.038

.259

.086

-.250

-.217

.464

-3-

PRCZING FEES

.568

.431

-.102

-.127

-.024

.013

SENCTION PRCZER

.435

.608

.088

-.238

-.036

-.177

SENCTION TIME

.384

.744

-.112

-.132

.084

-.393

4 CLZR CHRGD

.106

.577

.124

.046

-.141

-.240

ONLINE

-.321

-.001

.565

-.120

.198

-.074

INTRST AS INCME LVL

-.498

.249

.315

.139

-.107

-.022

SIZ WHL NNP EMI

-.265

.199

.818

-.166

.123

.144

FCLTY PRVD BANK

-.424

.461

.087

.025

-.054

.168

.262

.322

-.284

.090

.521

.142

.214

.034

-.148

-.323

PUBLIC SECTOR
PRIVATE SECTOR

.302
-.466
Extraction Method: Alpha Factoring.
a 6 factors extracted. 20 iterations required.

a. Rotated Factor Matrix - This table contains the rotated factor

loadings (factor pattern matrix), which represent both how the variables
are weighted for each f actor but also the correlation between the
variables and the factor. Because these are correlations, possible values
range from -1 to +1. On the/format subcommand, we used the
option blank(.30), which tells SPSS not to print any of the correlations
that are .3 or less. This makes the output easier to read by removing the
clutter of low correlations that are probably not meaningful anyway.
For orthogonal rotations, such as varimax, the factor pattern and factor
structure matrices are the same.
b. Factor - The columns under this heading are the rotated factors that
have been extracted. As you can see by the footnote provided by SPSS
(a.), six factors were extracted (the six factors that we requested).

Factor Score Coefficient Matrix

Factor
HL EZY 2 UNDRSTND
MORTG PRCS

1
-.007
.007

2
.200
.204

3
-.031
.245

4
.082
.038

5
-.052
-.153

6
.127
-.180

EMI FIX

-.044

.303

.031

.090

.037

.102

SRVC RCVD

-.039

-.408

.015

-.128

.927

-.151

.059

.461

-.213

.000

.306

-.100

-.036

.023

-.092

.072

.263

.081

INTRST CHRG BY BNK

HL FVOR

-3-

DOC PRCZER

-.051

-.312

.920

-.130

-.235

.089

PRCZING FEES

.079

-.009

.069

-.039

-.034

.006

SENCTION PRCZER

.205

.016

.059

.029

-.114

-.064

SENCTION TIME

.848

.180

-.311

.019

-.218

-.063

4 CLZR CHRGD

.129

-.076

-.043

.001

.073

-.158

ONLINE

.003

.088

-.057

.181

.014

.051

INTRST AS INCME LVL

.030

-.168

-.022

.048

.117

-.129

SIZ WHL NNP EMI

.036

.099

.059

.895

.140

.137

FCLTY PRVD BANK

.013

-.261

.055

-.006

.076

-.040

-.193

.083

-.065

.098

.093

1.080

.031

-.014

-.160

PUBLIC SECTOR
PRIVATE SECTOR

.041
.221
-.078
Extraction Method: Principal Axis Factoring.
Rotation Method: Varimax with Kaiser Normalization.
Factor Scores Method: Bartlett.

Factor Transformation Matrix

Factor
1
2

2
.350
.768

.631
-.561

.498
.078

4
-.298
.109

6
.350
.128

.140
.246

.023

.167

.160

.877

.309

-.286

-.192

-.170

-.375

-.208

.866

-.027

-.085

.266

-.331

.294

-.013

.852

.126

.334

-.493
-.399
.686
.029
Extraction Method: Alpha Factoring.
Rotation Method: Varimax with Kaiser Normalization.

a. Factor Score Coefficient Matrix - This is the factor weight matrix

and is used to compute the factor scores.
Factor Score Coefficient Matrix
Factor
HL EZY 2 UNDRSTND
MORTG PRCS

1
-.039
.033

2
.274
.203

3
-.049
.296

4
.135
.042

5
-.070
-.198

6
.307
-.285

EMI FIX

-.047

.292

.041

.094

.025

.147

SRVC RCVD

-.034

-.370

.039

-.132

.825

-.127

.062

.379

-.190

-.050

.371

-.192

INTRST CHRG BY BNK

HL FVOR

-.062

.021

-.121

.086

.372

.170

DOC PRCZER

-.055

-.332

.865

-.127

-.193

.096

PRCZING FEES

.063

-.003

.084

-.033

-.036

.088

SENCTION PRCZER

.225

.029

.055

.041

-.121

-.114

SENCTION TIME

.832

.198

-.324

.037

-.221

.018

4 CLZR CHRGD

.150

-.110

-.030

-.016

.083

-.270

ONLINE

.012

.126

-.074

.223

-.008

.066

INTRST AS INCME LVL

.054

-.187

-.026

.032

.135

-.245

SIZ WHL NNP EMI

.029

.074

.073

.861

.141

.139

-3-

FCLTY PRVD BANK

PUBLIC SECTOR
PRIVATE SECTOR

S
c
r
e
P
l
o
t
5
4
3
2
1
.012

-.257

.062

-.007

.073

-.041

-.178

.094

-.060

.087

.097

.949

.022

-.019

-.357

.088
.245
-.103
Extraction Method: Alpha Factoring.
Rotation Method: Varimax with Kaiser Normalization.
Factor Scores Method: Bartlett.

Discussion

Factor analysis helps us to identify the underlying dimensions,

or factors, that explain the correlations among a set of variables. This is

exactly what our study tries to capture. This study aims to factorize the

categories of decisions that a customers takes while seeking home loan

Eigenvalue

from Banks . Here we do not aim to reduce variables for any further
multivariate analysis.

01234
5
6
7
8
9
1
0
1
1
2
1
3
1
4
1
5
1
6
1
7
C
o
m
p
o
n
e
tN
u
m
b
e
r

Interpretation of Results

The null hypothesis is that the population correlation matrix is an

identity matrix rejected by Bartletts test of sphericity. Thus factor
analysis may be considered as an appropriate technique for analyzing
the correlation matrix
The tables showed above shows the application of principle
component analysis. In communalities tables it can be seen that

-3-

communality for each variables between1 to 17 is unity as unities were

inserted in the diagonal of the correlation matrix.
The scree plot shows the Eigen value for each 17 components.
The Eigen value for the factors is expected in decreasing order of
magnitude as we go from factor 1 to 17. The Eigen value for the factor
indicates the total variance attributed to that factor. Eigen values of
these factors should be greater than one to be acceptable.
The total variance explained by the extracted 6 factors is close
to 61% which is acceptable. But the Eigen value of factors 5 and 6 are
less than 1 but close to one. Hence we are taking them into
consideration also.
Factor 1 accounts for 13.62% of total variance
Factor 2 accounts for 12.89 % of total variance
Factor 3 accounts for 10.67 % of total variance
Factor 4 accounts for 10.01% of total variance
Factor 5 accounts for 7.87% of total variance
Factor 6 accounts for 5.04% of total variance
In component score matrix:
1) factor 1 has high coefficient for variables
speed and length of time for processing an application
accessibility of banks employees.
Document requirements are thoroughly explained
Mortgage process is thoroughly explained.
Responsiveness of banks.
Promptness of employees at bank Home Finance
Accuracy of paper work done
If these variables are observed they are centered on the
category of decision on the promptness of Banks
employees and can be safely labeled as factor promptness
in banks. This factor explains 25.73% of variance. This
suggests that while selecting a home loan institution the
promptness at Banks is the major factor that drives the
decision making of prospective customers.
2) Factor 2 has high coefficient for variables
Courtesy at banks.
Fairness of treatment received from banks
Overall satisfaction
Recommend to a friend

-3-

If these variables are observed they are centered on the

category of satisfaction with the service provided by Banks and can be
safely labeled as factor satisfaction. This suggests when past and
existing customers seek any type of home loan in the near future they
are likely to approach Banks.
3) Factor 3 has high coefficient for variables
Documentation requirements are minimal.
Application status
If these variables are observed they are centered on the
category of decision related to documentation requirement
and status of an application and can be safely labeled as
factor Documentation requirement. The statistics reveal
that we got negative feedback from the customer. This is the
are where Banks needs to concentrate upon to excel in the
highly competitive and growing home loan market.
4) Factor 4 has high coefficient for the variable
Easiness of application form
This factor contains just one variable and that is easiness to
understand the application form and can safely labeled as factor
Application

FINDINGS & SUGGESTIONS

Among the various loans offered the researcher found that most of the
customer

availed home loan whereas the takers for Mortgages and

Housing loan are relatively less i.e. 44 percentages have availed home
loan. 31 percentages are auto loan and 16 percentages are of consumer
durable loan respectively. 4 percentages are of personal loan and 2
percentages are of mortgages respectively. Hence it is recommended
for the company to aggressively advertise these loan facilities in both
newspapers and television channels so that many people may be aware
of the same.

-3-

 From the market research study it has been observed that 90% of the
respondents are aware of home loan.
62% of the respondents are aware of home loan through agent.
It was founded that 63% of the respondents are rate the service of
home loan as very good.
90% of the Existing Customers are Happy with the Benefits of home
loan.

SUGGESTIONS
The home loan company should concentrate heavily on attractive
advertisements and various Promotional Strategies like, giving
Pamphlets, put the hoardings and banners at important locations
People should be educated by giving seminar in Business
Conferences, installing stalls in Business Exhibitions. And Company
should conduct seminars in Educational Institutions to provide
information about company and its products.
Company has to create a sense of security among the customers.
Because most of the people fear about security.

CONCLUSIONS
The results and findings of this research study exemplifies the fact that

-3-

an in- depth market research has been conducted and all research work
has been conducted and all the objectives set for the research work has
been fully accomplished and the analysis is also performed to the
maximum extent possible.

An in-depth study has been made on the aspect that influences the
banks to be the best private financier. Customer satisfaction is the core
element in the business. For customer satisfaction the services have to
be an edge over the other banks, which banks have achieved. Banks is
aptly targeted potential customers among the various levels of people
in India. The banks overall performance and services seems to be
highly satisfied.

From the analysis it is found that some customers have faced some
procedural problem, for which the researcher has given some
suggestions and recommendations.

Banks has got goodwill and reputation among the public and this can
be used for promoting it services. If new promotional activity and
services introduced, it will help very much the organization to increase
the business.

-3-

BIBLIOGRAPHY
BOOK REFERENCES:
I.

S.P GUPTA, Statistical Methods, New Delhi, Sultan Chand &

Sons Publications,2002

II.

KOTLER PHILIP, Marketing Management, New Delhi,

Prentice-Hall of India Pvt.Ltd.,1971
C.R. Kothari, Research Methodology, New Delhi, New Age
Publishers,1995

III.

JOURNAL REFERENCES:
I.
II.
III.

ICFAI, Journal of Service Marketing, December 2004

ICFAI, Journal of Monetary Economics, November 2004
Indian Journal of Marketing May 2004
E-REFERENCES:

I.
II.

www.icici/india.com
www.sbi.co.in

III.

www.hdfc/india.com

IV.
V.

www.google.co.in
www.citifinancial.co.in

-3-

-3-

Questionnaire
Dear respondent, your valuable time and effort in filling this
questionnaire are highly appreciated. The information
collected through this questionnaire is a part of our
project determining investors confidence in the
Indian Stock Market and will be used for academic
purpose only.
CONSUMER PERCEPTION ON HOME LOAN
Share your views by putting a mark in the boxes against each question. To
maintain confidentiality.
How satisfied are you, about Home Loan???

Name:

Profession:

Age:

Place:

Qualification:

Date:

Cell No:

Mail ID:

1- Strongly Agree,
2- Agree,
3-Neutral,
4- Disagree,
5-Strongly Disagree
Sr.
Particulars
No.
1
The application form of Home Loan is easy to
understand.
2
The mortgage process has been explained thoroughly.
3
You like to prefer EMI fixed by bank?
4
How do you rate the service received?
5
How do you rate the Interest rates charged by
Bank?
6
Do you favor in Home Loan?
7
How do you rate the Documentation Procedure of
Bank?
8
How do you rate the Processing Fees of Bank?
9
How do you rate the Sanctioning Procedure of
Bank?
10 How do you rate the Sanctioning Time of Bank?
11 How do you rate the Fore Closure Charges of Bank?
12 How do you rate when loan sanctioning is going
online?
13 Do you think the interest charged by bank should
be different on the basis of income level?

-3-

1 2 3 4 5

14

Seize of asset facility by bank is the right step, in

case of nonpayment of EMI?
15 Are you satisfy with facility provide by the bank?
16 Would you like to prefer public sectors bank for
home Loan?
17 Would you like to prefer private sectors bank for
home Loan?
Anything else you would like to share:-

Thanks for your valuable inputs.

-3-