SYNOPSIS

ON

COMPARITIVE ANALYSIS OF HOME LOAN SCHEMES WITH REFERENCE TO PUBLIC SECTOR BANK OF SBI AND PRIVATE SECTOR BANKS OF ICICI & HDFC IN BANGALORE
Submitted in Partial Fulfillment of the Requirements of

Post Graduate Diploma in Management SUBMITTED TO

ALL INDIA MANAGEMENT ASSOCIATION CENTER FOR MANAGEMENT EDUCATION submitted By VENKATA RAMANAREDDY K REGISTRATION NO: 420920885 Under the guidance of PROF. LAKSHMINARAYANA

ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES

Peenya , Bangalore-58

WORKING TITLE:
COMPARITIVE ANALYSIS OF HOME LOAN SCHEMES WITH REFERENCE TO PUBLIC SECTOR BANK OF SBI AND PRIVATE SECTOR BANKS ICICI & HDFC IN BANGALORE

PURPOSE OF THE STUDY: Banks in order to face the challenges of the external environment successfully focus on mortgage products, in their effort to satisfy their clients needs .As competition grows constantly, it is very important to examine the factors that have a positive impact on consumer purchasing decisions, so that banks can create the appropriate marketing strategy. Home loans & other loans constitute the sector that has had the largest increase in the last years. The great fall of interest rates along with the offering of new, more flexible and attractive products has led to an increase in demand relating to housing. The schemes for the provision of mortgage products have been maintained at particularly high levels for the last years with commercial banks having the leading role .Todays bank clients are more informed on market products due to the load of circulating information, making them capable of directly comparing the various competitive products. Clients communicate with other clients, clients are more influenced than in the past by bank pricing policies and seek low borrowing interest rates and low costs for the provision of services .Todays clients turn easily towards the services of another bank than in the past, especially when they only find little and insignificant differences among the various products and services. Therefore it is very imperative that a study should be done to identify various factors that affect consumers choice of bank to avail loan facility. This study can help identify how a consumer perceives a bank .This study can help identify factors that can help modify various home loan products according to the need of customers.

AIM :To compare various Home Loan Schemes offered by various banks and to interpret the benefits that would satisfy the customer. OBJECTIVE To identify the gap between customer expectations and bank services in home loans. To analyse terms and conditions of various banks regards to home loan schemes. To analyse the availability of different bank home loan interest rate schemes. KEY QESTIONS: How do I know if I qualify for a home loan? What is a credit report and why is it important? Which loan is best for me? When is PMI required? RESEARCH METHODOLOGY: Research in common jargon refers to the search of knowledge. One can also define research as a scientific and systematic search of relevant information on a specific topic. Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money, or, money earned by deposited funds. Asset that are sometimes lent with interest include Money, share, consumer goods TOOLS USED FOR ANALYSIS Simple interest Compound interest Fixed and floating rates Composition of interest rates

RESEARCH OBJECTIVE This will help us to identify and select appropriate bank which will have less interest rate and maximum repayment of period with easy documentation. Steps in Research Methodology Defining the problem Objective Develop Research plan Collect the information Analysis the information Present the findings make the decision

SOURCES OF DATA Primary Data:This data can be collected through experiment or through survey. The various method of primary data collection is 1. Observation method 2. Interview method 3. Questionnaire method Secondary Data: Secondary data refers to the data which have already been collected and analyzed by someone else usually published data are available in form of 1. Various publication of central, state and local government. 2. Books Magazine and Newspapers. 3. Accounting records, sales force reports etc 4. Websites of banks

Sample size: How many banks and financial institution should be surveyed? Here 100 of the population of study Some persons are already taken home loan Some persons are on the process of getting home loan Some persons are willing to take home loan. SAMPLING UNIT:Due to its nature, the sample of study consists of ICICI and HDFC banks from private sector and SBI in the public sector. The home loan schemes with in the period of 2008-2011 were considered as sample period.

QUESTIONNAIRE

I K V RAMANA REDDY studying PGDM at Acharya Institute of Management & Sciences, Bangalore. I am conducting a research on COMPARITIVE ANALYSIS OF HOME LOAN SCHEMES WITH REFERNCE TO PUBLIC SECTOR BANKS OF SBI AND PRIVATE SECTOR BANKS ICICI & HDFC IN BANGALORE Hence please co-operate and fill up this questionnaire. Your response shall be kept confidential. Name: Address: ____________________________________________ ____________________________________________ ____________________________________________ Contact no: ____________________________________________ 1) What is your occupation? a) Businessman b) Government employee d) Self employed d) others

c) Private Service

2) What is your monthly income? a) Up to 25,000 b) 25,000 to 40,000 c) 40,000 to 55,000 d) 60,000 to 80,000 e) Above 1, 00,000 3) Did you approach the bank for home loan or bank approached you for home loan? a. Self b. Bank

4) Have you taken home loan? a) If yes, name of the bank from where you have taken home loan. ---------------------------------------------------------------------------------b) If no, which bank would you approach first for home loan? ----------------------------------------------------------------------------------

5) How long is your association with the bank? a) < 1 year b) 1-3 years c) 3-5 years d) > 5 years

6). would you recommend your bank to others for home loan? a) Yes b) no

7) Are you aware of these types of home loans? a) Home purchase loan construction loan d) Home improvement loan b) Home extension loan e) Home equity loan c) Home

8) Are you aware all terms and conditions of home loans? a) Yes b) No 9) Are you satisfied with the interest rates charged by your bank? a) Agree e) Disagree b) Strongly agree c) Disagree d) strongly

10) Do you agree that your bank loan processing is fast? a) Agree b) Strongly agree d) Strongly Disagree

c) Disagree

11) Are you satisfied with the staff behaviour of the bank? a) Strongly agree b) Agree c) d) Strongly disagree

Disagree

Q12. Would you like to give any suggestions for the better functioning of banks in these sectors? Public Sector-----------------------------------------------------------------------Private sector------------------------------------------------------------------------

Work plan:-

Literature review

1 week

Framing of objectives and preparation 1 week of questionnaire

Conducting the Survey

2 weeks

Organizing the data

1 week

Data analysis, Suggestion & Conclusion

1 weeks

Reporting & Binding

2 weeks

Professor Lakshminarayana.S Asst. Professor. Lakshminarayana S is a commerce graduate with a Masters in Commerce from Bangalore University, M.Phil in Commerce from Alagappa University and Masters in Business Administration (Finance) from Bharathiar University. He has 9 years for teaching experience in both UG (BBM, B.com) Bangalore University and VTU. His area of specialization is Accounting and Finance. He has presented and published paper on Micro Finance National Conference held By RNSIT, Bangalore in and presented a research paper in Microfinance regulations in India, KLE, and Hubli. He has guided many MBA students in their project work and Dissertation. He has got the empanelment as Counsellor from IGNOU for Diploma in BPO Programme, a jointly launched program along with Accenture.

CURRICULUM VITAE OF THE GUIDE Name: Qualification: Designation: Management Studies Experience: Articles Published: Papers Presented: FDPs/Workshop Attended: DERIVATIVES Lakshminarayanan.S M.com, M.B.A, M.Phil. Asst.Professor, Department of

9 Years of Teaching Experience National: 1 National: 1 3-Attended FDP at IIM (K), on

Name of the guide: LAKSHMINARAYANA. S Signature:

Name of the Student: K V RAMANAREDDY Signature:

Place: Date: