CHAPTER 1 INTRODUCTION TO THE STUDY

1.1 BACKROUND OF THE PROBLEM

The present study is aimed at determining the customer awareness and preferences in the home loan market. Decision making is identifying and choosing alternatives based on the values, awareness and preferences of the decision maker. In this knowledge based economy, getting the right information at the right time is an important weapon for a decision-maker. Making existing and potential customers knowledgeable about products and services create more informed buying decisions. Customers cannot purchase products and services if they do not know they exist. Lack of consumer awareness in any industry can harm sales. If specific products and services are better known, those products and services will remain on the front line in sales. Therefore, it is important to generate customer awareness that will introduce and make the target audience aware of the products and services a company offers.

Unlike awareness, customer preferences also play a vital role in choosing the best alternative. Preferences vary from person to person and may be based on ones goals, desires, life styles, values etc. Banks in order to face the challenges of external environment successfully focuses on mortgage products, in their efforts to satisfy their clients needs. The great fall of interest rate along with the offering of new, more flexible and attractive products has lead to an increase in demand relating to housing. Todays bank clients are more informed on products in the market due to the load of circulating information. Clients directly compare various competitive products and turn easily towards services of other banks than in the past especially when they find little or insignificant differences among various products and services. As competition grows constantly, it is very important for an existing player to examine the factors that have a positive impact on consumer purchasing decisions such as level of awareness and varying preferences so as to create appropriate marketing strategies.

1.1.1 STATEMENT OF THE PROBLEM

Housing loan is the finance taken for buying/modifying a real estate property. Home Loans, Home extension loans, home improvement loans, NRI loans and home equity loans fall under the category of housing loans. Any Resident or Non-resident individual who is planning to buy a house can apply for a Home loan. If one has decided to buy a property in the near future he can even apply for a loan before he select the property. Once you decide the maximum amount that you can put into the property, all Housing Finance Institutions let you know how much you are eligible for and this helps you plan out your budget.

HDFC Housing finance has been in the industry for more than 3 decades and provides various housing loan options based on the various home loan needs at attractive interest rates. Just like other banks HDFC is also offering door step service for finding a suitable loan which suits the customers personal needs. Whats this?

Customer awareness, which refers to a buyer's knowledge of a particular product or company, allows the buyer to get the most from what he buys. Customers know more about their choices when they have product information and benefit from knowing their rights, hearing about alerts and warnings and finding out about safety issues. Customer preferences vary according to the life style they prefer and belong and also differs based on their occupation. It can be broadly classified into self employed persons and salaried persons. These customers have their own preferences on different types of home loans. Some of the customers prefer nationalized banks while others prefer private banks based on their convenience. The present study is an attempt to analyze the customer awareness and preferences in the home loan market in Ernakulum.

1.2 INDUSTRY PROFILE 1.2.1. INDIAN BANKING INDUSTRY

The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Banking Industry has revolutionized the transaction and financial services system worldwide. Through the development in technology banking services has been availed to the customers at all times, even after the normal banking hours, on a 24x7 basis. Banking Industry services is nothing but the access of most of the banking related services (such as verification of account details, going with the transactions, etc.). In todays world, progress of online services is available to all customers of the concerned bank and can be accessed at any point of time and from anywhere provided the place is equipped with the Internet facility. Now-a-days, almost all the banks all over the world, especially the multinational ones, provide their customers with Online Banking facility. The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 are estimated at Rs 40, 90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. 1.2.1a. INDUSTRY IN INDIA IS GOING THROUGH A TRANSITIONAL PHASE The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened
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with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry. Banks in India can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. During the first phase of financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a shift from Class banking to Mass banking. Since then the growth of the banking industry in India has been a continuous process. As far as the present scenario is concerned the banking industry is in a transition sphase. The Public Sector Banks (PSBs), which are the foundation of the Indian Banking system account for more than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets On the other hand the Private Sector Banks in India are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of the Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely to succeed in India. Indusland Bank was the first private bank to be set up in India. IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks. Banks from the Public Sector
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include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank, Andhra Bank etc. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank etc are some foreign banks operating in India. 1.2.1b. INDIAN BANKING AN OVERVIEW Indian Banking is the lifetime of the nation and its people. Banking has helped develop vital sectors of economy and usher in a new dawn of progress on the Indian horizon. Roots of banking system in India dates back over 2000 years. The Indian Banking industry is today at the crossroads. It is trying to make the transition from the era of socialist rhetoric to the era of the marketing mantra. A strong and efficient financial system is critical to the attainment of the objective of creating a market driven, productive and competitive economy and to support higher investment levels and accentuate growth. Banking is the most dominant segment of the financial system and plays a critical role in the development of sound economy. So, to improve the performance of banking industry, financial sector reforms have introduced, which brought about significant improvement in the strength, resilience and competitiveness of Indian banking industry. 1.2.1c.EVOLUTION OF BANKING INDUSTRY IN INDIA Organized banking was active in India since the establishment of the General Bank of India in 1786. After independence, the Reserve Bank of India (RBI) was established as the central Bank and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken over by the government to form state owned state Bank of India (SBI). RBI has undertaken an exercise to merge weak banks to strong banks and the total number of banks thus reduced from 566 in 1951 to 85 in 1969. With the objective of reaching out to masses and meeting the credit needs of all sections of people, the government nationalized 14 large banks in 1969 followed by another 6 banks in 1980. This period saw enormous growth in the number of branches and the banks branch network became wide enough to reach the weakest sections of the society in a vast country like India. SBI network of 9033 domestic branches and 48 overseas offices is considered to be one of the largest for any bank in the world.

The economic reforms unleashed by the government in early nineties included banking sector too, to a significant extent. Entry of new private sector banks was permitted under specific guidelines issued by Reserve Bank of India. A number of liberalization and de-regulation measures aimed at consolidation, efficiency, productivity, asset quality capital adequacy and profitability have been introduced by the RBI to bring Indian banks in line with International best practices. With a view to giving the state-owned banks operational flexibility and functional autonomy, partial privatization has been authorized as a first step, enabling them to dilute the stake of the government to 51 percent. As of March 31, 2003, there were a total of 289 scheduled commercial banks in India. It gives the banking measures of deposits, advances and net profit as at March 31, 2003 for the key constituents namely, public sector banks, private sector banks (new- which came into existence after liberalization of nineties and old- which were in existence from before), foreign banks and regional rural banks. Even through regional rural banks number 196, they have a minuscule share of 3.4 per cent of customer deposits and 3 percent of net profit of the industry total. Similarly, the older private sector banks are mostly regional players and enjoyed a small share. The public sector banks including the State Bank group (SBI and its subsidiaries) dominate the industry with 77 percent share of the deposit and 70 percent share of net profit. Excluding SBI group, public sector banks still command a very high share of close to 50 percent share of the total industry in terms of deposits.

1.2.2 INTERNATIONAL SCENARIO MORTGAGES

Expatriate Mortgage Broker & International Mortgages. Financial is an independent financial advisor and international mortgage broker. Our primary activity is to secure mortgages for UK expatriates and foreign nationals financing property purchase in the UK. We have access to the top UK mortgage lenders, offshore banks and financial banking institutions. This ensures we can secure some of the very best international mortgage loans at the most competitive international mortgage rates. Through our experience we understand that the expatriate has special requirements when it comes to securing an international mortgage plan. It
is our aim is to simplify the entire mortgage process and we pride ourselves on the level of service we provide.

1.2.2a. INTERNATIONAL FINANCIAL SERVICES CENTRE In the Structured Financial Messaging System (SFMS), the Indian Financial System Code (IFSC) is being used as the addressing code in user-to-user message transmission. The Payment System Applications such as RTGS, CFMS and NEFT developed by the Reserve Bank of India (RBI) use these codes. The code consists of 11 characters - first 4 characters (4! A) Represent the entity; fifth position has been defaulted with a '0' (Zero) for future use; and the last 6 characters (6! X) Denote the branch identity. IFSC is being identified by the RBI as the code to be used for various payment system projects within the country, and it would, in due course, cover all networked branches in the country. In due course, when all bank branches participate in electronic payment systems, they would need to have a single identifiable unique code and IFSC would serve the purpose effectively. 1.2.2b.INTERNATIONAL HOME LOANS International home loans are an ideal tool to facilitate real estate investments around the world. Our trained teams of home loan experts keep abreast of the most competitive international property loan deals available in the market today, and will offer informed recommendations to clients about the same. Services for International Home Loans include: 1. Pre-application our staff will i) find the most appropriate international home loan deal according to our clients home loan requirements, personal circumstances and property location ii) meet with the bank to confirm details of the loan, including amount of financing available, lending rates, loan repayment schedules and loan tenure. Once these details are confirmed, our staff prepare a table of recommendations to our client, enabling him to make an informed decision 2. Application Healy Consultants completes the international home loan application form provided by the bank. Furthermore, we collect client due diligence required by the bank, typically including applicants passport copy, letter from employer confirming salary and/or bank statements. A copy of the valuation report of the property is also supplied, if required. Sometimes a lender also requires cash flow statements and rental income forecasts as part
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of the application. To maximize the likelihood that the international home loan is approved quickly, Healy Consultants will prepare these additional documents on our clients behalf. 3. Post-application once the international home loan application is submitted, Healy Consultants liaises with the bank officer handling the application. We i) confirm that the application is successfully received and ii) that the information contained in the application pack is sufficient. If the bank requests additional information on the applicant or property we will supply it (with the assistance of our client). 4. The bank will send out a Home Loan offer, which we will then forward to our client. Once our client accepts the offer we often help the client open personal and/or corporate bank accounts to receive rental income 1.2.2c.INTERNATIONAL MORTGAGE LOANS Mortgage process in other countries is similar to the process in the United States, language, cultural and legal issues can make it very complex. We at International Mortgage Loans work hard to simplify the process for our clients. We take you from application to closing seamlessly. Whether you want real estate financing internationally or in the United States, we work for you and it is our job to provide the loan that best meets your needs. We provide mortgages for properties globally for purchase or refinance for Commercial or Residential properties in select foreign countries and all 50 United States.

Purchase
Whether you are purchasing a condo on the beach in Baja, or a home in the lush mountains of Costa Rica, we provide the financing. Now you can make your dream home a reality!!! We can even pre-approve your mortgage before you shop for that special property. We will let you know what your financial limits are before you make a purchase offer.

Refinance
The tremendous appreciation seen in various countries and regions of the U.S. in the last few years has created millions of dollars in equity for the many U.S. Citizens that own property there.
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Taking that equity out in cash and keeping your dream property as it continues to appreciate is like having your cake and eating it too!!! Speak with one of our loan representatives to find out how much cash you can tap from your U.S. or foreign real estate.

1.2.2d. NATIONAL SCENARIO OF FINANCIAL SERVICES In last few years, India has emerged as the one of the most rapidly growing economies in the world. India along with other Asian powerhouse China makes for the fastest growing nations in the entire world. Even if we take the case of ongoing global recession, India has managed to perform far better than other nations. Right from banking system to financial regularities, the country has thrived on discipline and out-performance. The booming Indian economy resulted in widespread growth and arrival of new industries. The most sparkling phenomenon is in form of financial market of India. Financial services in India has taken a giant leap from the days of standing in banks queue for several hours for opening a saving account or trying to get some fixed deposits (FD) done. There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry. Most of the companies in financial segment offer taxation services, project consultancy services and all the services of wide financial gamut. Whether its taking a car loan or booking your favorite house, going for pension plan or getting your child insured, numerous attractive financial services are available at affordable costs. Personal banking services have acquired an altogether new meaning. Now customers have multiple choices to choose from. One can find all the financial services on the internet that are just a call away. 1.2.2e. HOUSING FINANCE COMPANIES IN INDIA Economic liberalization and ensuing policy changes, the housing finance industry has undergone a paradigm shift over the last decade. Gone are the days, when taking a loan meant entering a labyrinth of documentation and dealing with condescending bank officials. Today, in the backdrop of intense competition, housing finance companies are falling over each other to
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woo potential customers. Housing finance being one of the safest lending avenues has also contributed to the emergence of new players in the market. The unique place that a house has in an individual's life plus the high proportion of the customer's own money in the house provides considerable comfort for home loan companies. In the present times, people are increasingly taking to credit, because of rising annual incomes and the series of tax sops that have become an annual ritual in the Union Budget. With the constant rise in demand for residential and commercial complexes, the growth of the real estate sector in India has witnessed at an exponential rate over last five years. Cut-throat competition among Indian housing finance companies has brought down the interest rates by a few notches. The vast difference in interest rates across-the-board has all but disappeared, and home loan companies are taking recourse to product innovation to stand out in the burgeoning home loan market. Today, apart from the resident Indians, even NRI's can apply for a home loan. An applicant applying for a loan can either opt for fixed or floating rates. The loan rates of companies today are in between 7.50% to 12 %, depending on the repayment years. The recent home loan interest rate cut by various banks has started showing results. Things are now picking up in the residential real estate segment. Builders and financial institutions have started receiving enquiries once again, after a long drought. Sanjiv Srivastava MD Assotech said, "There is a clear change in trend in the last couple of weeks. Many, who had dropped the idea of buying an apartment after the interest rate hike in January 2007, want to complete the deal now." Many banks like HDFC, IDBI, SBI, ICICI, Axis Bank, Canara Bank, Bank of Baroda, and Bank of India had slashed their interest rates on floating rate home loans to tap the festive season. In addition to the cut in interest rates, banks had also organized special fairs, offered discounts on processing fees to lure in more customers. The hike in floating rate home loan during the past few months had dried up their business and forced the banks to offer discounts despite no such indications by RBI.

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The recent demand for new home loans is mostly for the non-premium segment - that is for apartments costing around 50 lakhs. The premium segment is currently facing a peculiar oversupply situation and is not witnessing too many enquiries. Every Home Loan customer is eligible for tax benefits under sections 88 and 24 of the Income Tax Act. Allowable deduction of interest paid during the year: As per the budget of financial year 2001 - 02, every customer can claim a deduction on interest amount of a maximum of Rs. 150000/- or the actual interest paid (whichever is lower) to the HFI from his Gross Taxable Income. Tax exemption on Principal repaid during the year: The budget for financial year 2001 - 02 provides for tax exemption on a maximum of 20% of a principal amount of Rs. 20000/- or the actual interest paid during the year (whichever is lower) to the HFI from the total tax payable by the customer.

Tax Benefits on Home Loans

The Mortgage Financing industry was estimated approximately at US $ 18 billion in India. The mortgage industry is undergoing a change as the market is dominated by banks in the direct housing finance sector. Though the housing finance industry in India is growing for the past few years still financing through the organized sector continues to account only for 25% of the total housing investment in India

1.2.3 STATE SCENARIO

Kerala Financial Corporation (KFC) incorporated under the State Financial Corporations Act of 1951, is a trend setter and path breaker in the field of long term finance, playing a major role in the development and industrialization of Kerala. It was established as the Travancore Cochin Financial Corporation on 01.12.1953. Consequent to the reorganization of states on linguistic basis in November 1956, Kerala State was formed and the Travancore Cochin Financial Corporation was renamed as Kerala Financial Corporation. Now KFC has 16 Branch Offices with its Head Quarters at Thiruvananthapuram and Zonal Offices at Kozhikode, Ernakulum and Thiruvananthapuram. The provisions of SFCs Act 1951 as amended
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in 2000 control and guide the functions of Corporation. The main objective of KFC is the rapid industrialization of the state by extending financial assistance to Micro, Small and Medium Enterprises in manufacturing and service sector.SFCs Act empowers KFC to formulate suitable loan schemes for achieving the above said objectives. Corporation can give financial assistance for setting up of new units and for the expansion / modernization / diversification of existing units in both manufacturing and service sectors. Since inception KFC has disbursed over Rs. 3000 Crores to more than 40,000 projects, spread over the length and breadth of the State. There are over 45 Home loan companies and mortgage lender in Kochi. The leading loan companies in Kochi are HDFC, ICICI, HSBC, Citibank, LIC Housing, SBI, GE money, Reliance money, IDBI bank among other. The growing demands for various kinds of properties in the city on the one hand and the acute shortages of lands and houses on the other hand have made the real estate prices in Kochi have been scaling new heights over a period of time. Within the past few years the property prices have moved up but salaries have not kept pace, making it almost impossible for anyone to buy a property without any aid from the home finance companies in Kochi. The banks and housing finance institutions in Kochi provide cheap and affordable home finance solutions to help you buy the property you desire or home equity loans in Kochi for renovation or construction purposes or even real estate mortgage loans in Kochi for getting loan against your house asset in bad times. Thus, you can apply for home loans in Kochi when you want to: Construct a residential house. Buy a residential property. Purchase a residential plot in an upcoming area. Buy a flat or apartment. Need a loan for renovation of your house.

Most of the banks and finance companies have their own websites that tell you step by step process to apply for home loans. You can also visit their local branches to get information regarding the procedure. The amount of home loans normally depends upon your personal annual income but can be increased if you are allowed to show your gross household income. Various
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EMI calculators on AbodesIndia.com help you easily calculate the EMI and your eligibility to get a loan. Loans that are taken against a property that you already own are called Mortgage Loans. In Kochi there are above 30 banks and lenders who give mortgage loans. Such loans are also called Loan against property in Kochi. Normally you can borrow up to about 60% of the market value of the property but some banks like HDFC, SBI, and ICICI allow you to borrow up to 50% of the Agreement Value or Market value of the property in Kochi. In Kochi, Commercial loans for acquiring a commercial property are also available with a select few banks and home loan lenders like HDFC, SBI and IDBI bank.

1.3 COMPANY PROFILE

Against the milieu of rapid urbanization and a changing socio-economic scenario, the demand for housing has grown explosively. The importance of the housing sector in the economy can be illustrated by a few key statistics. According to the National Building Organization (NBO) the total demand for housing is estimated at 2 million units per year and the total housing shortfall is estimated to be 19.4 million units from the urban areas. The housing industry is the second largest employment generator in the country. It is estimated that the budgeted 2 million units would lead to the creation of an additional 10 million man-years of direct employment and another 15 million an-years of indirect employment. Having identified housing as a priority area in the Ninth Five Year Plan (1997-2002), the National Housing Policy has envisaged an investment target of Rs.1500 billion for this sector. In order to achieve this investment target, the Government needs to make low cost funds easily available and enforce legal and regulatory reforms. 1.3.1 ABOUT THE HDFC Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977 with the primary objective of meeting a social need of encouraging home ownership by providing long-term finance to households. Over the last three decades, HDFC has turned the concept of housing finance for the growing middle class in India into a world-class enterprise with excellent reputation for professionalism, integrity and impeccable service.

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A pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 3.8 million families to own a home of their own, through cumulative housing loan approvals of over Rs. 2.98 trillion and disbursements of over Rs. 2.42 trillion as at March 31, 2010. HDFC has a wide network of 289 offices (which includes 71 offices of HDFC's wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country. It also has offices in Dubai, London and Singapore and service associates in the Middle East region, to provide housing loans and property advisory services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity of vision, percolate through the organization. Trust, Integrity, Transparency and Professional Service are the important pillars of the brand HDFC and most importantly, people - both employees and customers - are its brand ambassadors. Customer satisfaction is the hallmark of all HDFC offerings. The first touch of HDFC's personalized service begins as soon as a customer approaches HDFC, and over time it progresses into a long and meaningful relationship. State-of-the-art information systems supported by strong in-house training programmes conducted at its specialized training centre in Lonavla, have equipped HDFC to respond swiftly to the ever-changing customer needs and thereby empower customers in making the right home buying decision. This is what sets apart HDFC's customer service philosophy - 'With You, Right Through'. HDFC's specialist team of over 1,500 trained and experienced professionals follows a 'singlewindow concept' for providing smooth and value added services at all stages. The team guides the customers right through the entire process of property purchase - be it property search assistance, technical support prior to finalizing the property, legal advice on property related documentation, personalized home loan counseling or providing tailor-made repayment options to suit the customer's specific requirements. HDFC's wide product range includes loans for purchase and construction of a residential unit, purchase of land, home improvement loans, home extension loans, non-residential premises loans for professionals and loan against property, while its flexible repayment options include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP).
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HDFC also has a robust deposits mobilization programme. HDFC has been able to mobilize deposits from over 10 lack depositors. Outstanding deposits grew from Rs. 1,458 crores in March 1994 to Rs 23,081 crores in March 2010. In addition, HDFC has received 'AAA' rating for its Deposit products for highest safety from both CRISIL and ICRA for sixteen consecutive years. Over the years, HDFC has emerged as a financial conglomerate with its presence in the entire gamut of financial services including banking, insurance (life and non-life), asset management, real estate venture capital and more recently education loans. Today, HDFC is recognized as one of the Best Managed Companies in India and is a model housing finance company for developing countries with nascent housing finance markets. HDFC has undertaken several consultancy assignments in various countries across Asia, Africa and East Europe to support and establish their housing finance institutions. At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin to its 'learning by doing' philosophy. As part of its social objectives, HDFC has always endeavored to contribute to economic development and social upliftment of the weaker sections of society and has professionally nurtured each of its social initiative as an investment. HDFC has undertaken development oriented work and supported several social initiatives in the areas of education, child welfare, medical research, welfare for the elderly and the handicapped among several others. HDFC is how millions of Indian families spell the word 'Home' as the brand not only offers Housing Finance, but also Total Housing Solutions.

The HDFC Advantage

Pioneers of Housing Finance in India with over 33 years of lending experience. Widest range of home loan & deposit products. Vast network of over 283 interconnected offices which includes 3 international offices. Most experienced and empowered personnel to ensure smooth & easy processing. Online loan application facility at www.hdfc.com and across-the-counter services for new deposits, renewals & repayments. Counseling and advisory services for acquiring a property. Flexible loan repayment options
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 Free & safe document storage

HDFC Home Loan Features

The HDFC housing offers loans for purchase of old as well as new property, repair and renewal as well as for buying plots. The HDFC offers loans to NRI and Indian customers at fixed and floating rates. Co-applicants allowed: Father, Mother, Brother, Sister, Son, Daughter, Spouse

Processing Fees: 0.50% to 1% of loan amount, maximum Rs 10000.

Prepayment Charges: If paid from own source- Nil, in other cases- 2% on amount prepaid.

Min-Max Age: 21-60

Max Tenure: 15

1.3.2 BUSINESS OBJECTIVES

The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another Objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

1.3.3 ORGANIZATIONAL GOALS

The main goals area) To develop close relationships with individual households.
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b) To maintain its position as the premier housing finance institution in the country. c) To transform ideas into viable and creative solutions. d) To provide consistently high returns to shareholders e) To grow through diversification by leveraging off the existing client base Against the milieu of rapid urbanization and a changing socio-economic scenario, the demand for housing has grown explosively. The importance of the housing sector in the economy can be illustrated by a few key statistics. According to the National Building Organization (NBO), the total demand for housing is estimated at 2 million units, of which 12.76 million units is from rural areas and 6.4 million units from urban areas. The housing industry is the second largest employment generator in the country. It is estimated that the budgeted 2 million units would lead to the creation of an additional 10 million man-years of indirect employment. Having identified housing as priority area in the Ninth Five Year Plan (1997-2002), the National Housing policy has envisaged an investment target of Rs.1500 billion for this sector. In order to achieve this investment target, the Government needs to make low cost funds easily available and enforce legal and regulatory reforms.

1.3.4 AWARDS AND ACCOLADES Awards & Accolades 2010

Best CFO in the financial sector for 2010 by ICAI. (Feb '11)

Mr. VS Rangan, Executive Director, HDFC has been awarded the "Best CFO in the financial sector" for 2010 by ICAI. Verve Power List 2010 (June '10)Ms. Renu Sud Karnad featured in Verve magazines list of 50 power women. Finance Asias List of Asia's Best Managed Companies (April '10) HDFC featured in Finance Asia magazines list of Asias Best Managed Companies. ET - Corporate Dossier List of India Inc's Most Powerful Women leaders (Apr '10) Ms. Renu Sud Karnad featured among the list of top 15 powerful women CEOs. Reader's Digest India's Most Trusted 2009 (Mar '10) Mr. Deepak Parekh voted among India's Most Trusted by people across India in a poll conducted by Reader's Digest on a list of 100 public figures.
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 India Today Power List 2010 (Mar '10) Mr. Deepak Parekh featured in India Todays list of 50 Power People. Times of India Crest List of 100 Powerful Women (Mar '10) Ms. Renu Sud Karnad featured in the business category among the List of 100 Powerful Women by TOI Crest. Dun & Bradstreet Rolta Corporate Awards 2009 (Mar '10) HDFC selected for the fourth consecutive year as the 'Top Indian Company' for the 'Financial Institutions/Non-Banking Financial Companies/Financial Services' sector at the Dun & Bradstreet Rolta Corporate Awards 2009. Institute of Chartered Accountants in England and Wales (ICAEW) Award (Feb '10) Mr. Deepak Parekh pronounced as the first international recipient of the 'Outstanding Achievement Award by ICAEW. Confederation of Real Estate Developers Associations of India (CREDAI) Award (Feb '10) Mr. Deepak Parekh awarded the 'Lifetime Achievement Award' by CREDAI for his contribution to the Real Estate Industry at Natcon 2010 in Dubai.

Awards & Accolades 2009

CNN-IBN Indian of the Year 2009 (Dec '09)Mr. Deepak Parekh along with the team that revived Satyam, received CNN-IBN's 'Indian of the Year' Award in the business category. 14th Motilal Oswal Wealth Creation Study (Dec '09) Motilal Oswal Financial Services for the second time ranked HDFC as the Most Consistent Wealth Creator in its 14th Annual Wealth Creation Study, which analyses the top 100 wealth creating companies of India. HDFC is ranked as the most consistent by virtue of its 10-year price CAGR being the highest. NDTV Profit Business Leadership Awards 2009 (Dec '09) Mr. Deepak Parekh received the 'NDTV Profit Business Leadership Award' for being part of the team that revived Satyam.

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 Business Today's List of 30 Most Powerful Women in Indian Business (Nov '09) Ms. Renu Sud Karnad for the fifth time featured amongst Business Today's '30 Most Powerful Women in Indian Business'. 'AAA' rating for HDFC Deposits by CRISIL & ICRA (Aug '09) HDFC's Fixed Deposit Program has been reaffirmed the 'AAA' credit rating for the 15th consecutive year by CRISIL and ICRA . Study by the Great Place to Work Institute (June '09) HDFC featured amongst the 'Top 50 Best Companies to Work For 2009', a study conducted by The Great Place to Work Institute in association with The Ec6nomic Times. In addition, HDFC was adjudged as the 'Best Company for Management Credibility' overall, and bagged the third rank in the Banking and Credit Services Industry. Karmayog Corporate Social Responsibility Ratings 2008 (May '09) In a study of 1000 largest Indian companies undertaken by Karmayog in 2008, HDFC scored the highest rating of 4 out of 5 for its CSR projects and activities for the second year in a row. Mr. Deepak Parekh amongst India's 50 Most Powerful People 2009 - Business Week (Apr '09). Mr. Deepak Parekh features among the top of India Inc's Most Powerful CEOs - Survey by Economic Times with IMRB (Mar '09). Mr. Deepak Parekh selected for the IMC Juran Quality Medal 2008 for his excellent customer-centric work in various initiatives related to the fields of Banking & Finance (Mar '09). HDFC selected as the 'Top Indian Company in FIs / NBFCs / Financial Services sector' for the Dun & Bradstreet - Rolta Corporate Awards 2008 (Mar '09). Mr. Keki Mistry awarded the "Best CFO in the Financial Services Sector" and the "CFO of the Year" for 2008 by CNBC TV18 (Mar '09). Mr. Keki Mistry declared the Best CFO in the Financial Services category by the Institute of Chartered Accountants of India (ICAI) (Jan '09). Mr. Deepak Parekh is CNBC's Outstanding Business Leader (Jan '09). Mr. Deepak Parekh awarded the 'Business Leader of the Year' by NDTV (Jan '09).

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Awards: 2008
Ms Renu Sud Karnad selected as the best woman Corporate Leader of the year by Business &Economy Magazine. HDFC selected as the top Indian company in FIs / NSFCs / financial services sector for the DUN & BRADSTREET- American Express Corporate Awards 2007. Mr. Deepak Parekh recognized by Finance Asia for his life time achievements, at their achievement Awards ceremony held in Hong Kong on 24th Jan, 2008.

Awards: 2007
Mr. Keki Mistry awarded the Best Performing CFO in the financial services sector for 2007 by CNBC-TV18. Business today selects Renu Sud Karnad as a powerful woman in Indian Business. HDFC emerged as the best Investment Management company in India at the Liquid Real Estate Awards- 2007 organized by EUROMONEY. HDFC ranked 3rd amongst the Asian Banking and Finance Sector for Highest Return on Equity by Asia money. Ms Renu Sud Karnad, Executive Director, was one of the eminent women felicitated by the FICCI Ladies organization at their Women Achievers Award-2007.

Award: 2006
Mr. Deepak Parekh, Chairman HDFC Ltd. Awarded the Best Non Executive Director 2006 by the Asian Centre for Corporate Governance. Mr. Keki Mistry, Managing Director HDFC Ltd, awarded the best performing CFO in the Financial Services Sector at the CNBC-TV 18 CFO Awards 2006. HDFC won the award for Investment Management in India at the EUROMONEY 2006 Real Estate awards. Best Home Loan Provider title at the Zee Business Pinnacle Awards, 2006. Limca Book of records, 2006: HDFC for the landmark achievement of Rs. one lakh crore.

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 Best Strategy at the 4Ps business, marketing and advertising power awards 2006, Dun & Bradstreet- American Express Corporate Awards 2006. Mr. Deepak Parekh, Chairman, HDFC Ltd. Conferred with prestigious Padma Bhushan award.

Awards: 2005
HDFC receives award for The Best Presented Accounts of The Institute of Chartered Accountants of India for 2004-05. HDFC ranked as Indias third best managed company by finance Asia -2005. Mr. Deepak Parekh awarded the Hall of fame award by outlook Money magazine. HDFC receives the Dream Home award for the best Housing Finance Company for 2004 from outlook money magazine.

1.3.5 FUTURE OF THE COMPANY

HDFC has always been market-oriented and dynamic with respect to resource mobilization as well as its lending program. This renders it more than capable to meet the new challenges that have emerged. Over the years, HDFC has developed a vast client case of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth. Internal systems have been developed to be robust and agile, to take in to account changes in the volatile external environment. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialized financial services. Each institution is being fine-tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and service.

Centre for housing finance (CHF)

A synonym for convenient and hassle-free service, HDFCs Training Centre, CHF presents a unique focal point to hold training programmes.

Nature at its best.

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CHF is located in the serene ambience of Lonavla, 2000 feet above sea level, 120 kms from Mumbai. The hills and valleys and scenic landscape make your training unique pleasurable experience, so much so you may even prefer having your sessions out in the open lush green lawns.

Training and Human Resource Management

HDFC having pioneered and helped develop market-oriented housing finance in India, has continued to expand its services to a broader spectrum of clients by offering specialized training courses. HDFCs centre for Housing Finance (CHF) provides technical assistance to national governments and housing finance institutions in developing countries in the South Asian and African regions, especially in the field of institutional development for effective shelter finance delivery. The second major area of activity of the CHF is managerial training for housing finance institutions. Besides effective housing finance operations, some established housing finance institutions also seek training for systems development and improvement.

Technology adds value

State of the art technology at this training centre makes your training programme come alive. Overhead projectors with remote control screen, multimedia projector, electronic copy board and programmable lighting arrangements all make for a great learning experience. Besides you can bid farewell to the hiss, crackle static of artificial audio sounds. And welcome sound in its natural state thanks to the acoustic cushioning of the training centre. CHF is also well-equipped with computers, fax and photocopying facilities. A backup generator set provides uninterrupted power supply. Air conditioning ensures a balanced climate here. Also our syndicate rooms provide facilities for group work.

Service that makes you smile..

CHFoffering you service when you need it the most. Ergonomically designed chairs with seating arrangements which are flexible to suit your requirements and refreshment services at preferred things make the experience complete and fulfilling in every respect. A well equipped
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library and above all a caring and experienced staff who understand your needs are what make CHF truly one of a kind. When you come to CHF, rest assured that the only thing you would need to think about is your training. We will take care of the rest.

The residential annex..

The residential annex has seventeen well appointed rooms for single or double occupancy. Equipped with comforts like cable T.V, Air-conditioning, attached bathrooms and work space, these rooms make unwinding a rewarding experience. Attached to the Residential Annex, is the air-conditioned dining room offering Chinese, continental, Magalia and South Indian cuisines.

1.3.6 HDFC SALES (P) LTD

HDFC Sales (P) Ltd is a wholly owned subsidiary of HDFC Ltd and which was incorporated on 23rd January 2004. HDFC sales offer financial management solutions uncompressing home loans, life insurance mutual fund property solution and education loan. HDFC Sales is present in more than 200 locations across the country with more than 60 offices and over 3000 employees. MS.Renu Sud Karnad is the chairperson and Mr. Gautam Bhagat is the CEO of HDFC Sales (P) Ltd. HDFC not only offers Home Loans but also loans for renovation and other related purposes like Home Improvement Loan, Home Extension Loan, Short Term Bridging Loan, Land purchase Loan, Home Equity Loans. Besides these, loans to professionals for Non Residential Premises are also provided. HDFC Housing Loan can be taken up to 85% of the total cost of your home and you can avail their Home Loan facility from the age of 20 years till the age of your retirement. Moreover HDFC Housing finance offers the special benefit of Multiple Repayment Option to their clients. The primary subdivision of HDFC Home Loans is loans for Resident Indians and for Non Resident Indians. HDFC Home Loans can be customized according to the individuals needs and repayment capabilities. An individual can undergo a Home Loan guidance, which will

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help you to plan your purchase and selecting the appropriate housing loan. Variety of loan option which gives multiple choices to an individual to choose the best loan option. Long with these features HDFC housing loan offers multiple repayment options which offer a customer a larger scope of repayment according based on the financial situations.

Fig .1 Organization Structure

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Managing Director

CEO

General Manager

Regional Manager

Regional Manager

Regional Manager

State head

State head

State head

Area sales manager

Area sales manager

Area sales manager

Team manager

Team manager

Team manager

Executives

Executives

Executives

1.3.7PRODUCTS PROFILE
1.3.7a. HOME LOAN

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 Maximum home loan 80% of the cost of the property (including the cost of the land)and based on the repayment capacity of the customer. Maximum term 15 years subject to your 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 co-applicants need not be co owners. Adjustable rate home loan Loan under adjustable rate is linked to HDFCs Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your 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 home loan, and vice versa when the interest rate decreases

1.3.7b.HOME IMPROVEMENT LOAN Purpose o External repairs o Tiling and flooring o Internal and external painting o Plumbing and electrical work o Waterproofing and roofing o Grills and aluminum windows
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o Waterproofing on terrace o Construction of underground/ overhead water tank o Paving of compound wall (with stone, tile etc) and bore Maximum loan 100% of the cost of improvement, subject to loan not exceeding 80% of the market value of the property as assessed by HDFC. (Subject to market value of the property) Maximum term 15 years subject to your 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 co-applicants need not be coowners. Adjustable Rate Home Loan. Loan under adjustable is linked to HDFCs Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR the interest rate on your 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 extension of term of the loan and vice versa when the interest rate decreases.

Current RPLR of home improvement loan

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RPLR: 16.00 Applicable Rates (Monthly Rest Basis) Up to and including Rs 30 lacks Rs.30.01 lacks to Rs.75 lacks Over Rs.75 lacks Fixed rates% 12.00 12.00 12.00 Variable rates% 10.25 10.50 11.00 Basis% RPLR RPLR - 5.75 RPLR - 5.50 RPLR - 5.00

*The above rates are subject to change without notice.

1.3.7c.HOME EXTENSION LOAN Want to build an additional room or enclose the open balcony space HDFC Home Extension Loan is a convenient loan facility to extend or add space to your house. Be it an additional room on the same floor or the terrace, a larger bathroom, or even enclosing an open balcony, the Home Extension loan will facilitate your home extension plans with appropriate loans and comfortable re-payment options. Home Extension loans are quick to arrange and repayable in easy monthly installments. You can avail of this loan even if you are an existing customer of HDFC

Features
Purpose HDFC Home Extension Loan makes it convenient for you to extend or add space to your home. Be it an additional room, a larger bathroom, or even enclosing an open balcony. Maximum loan 100% of the cost of extension, subject to loan not exceeding 80% of the market value of the property as assessed by HDFC.

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Maximum Term 20 years subject to your 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 co-applicants need not be co- owners.

Adjustable Rate Home Loan Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your 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

Current RPLR Of Home Extension Loan

RPLR: 16.00 Applicable Rates (Monthly Rest Basis) Up to and including Rs 30 lacks Rs.30.01 lacks to Rs.75 lacks Over Rs.75 lacks Basis% RPLR RPLR - 5.75 RPLR - 5.50 RPLR - 5.00

Fixed rates%

Variable rates%

12.00 12.00 12.00

10.25 10.50 11.00

* The above rates are subject to change without notice.

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1.3.7d.SHORT TERM BRIDGING LOAN Short term bridging loan makes you realize your dream of buying a bigger and better home and gives you time to sell your existing property to pay off the loan. This is a short term loan to help customers with the interim period between the sale of your old home and the purchase of a new home. You can take the loan even if you are an existing customer of HDFC. 1.3.7e.LAND PURCHASE LOAN Features

Maximum loan Direct Allotment from Development authority - 85% of cost of the land First Purchase from developers, Resale plots - 70% of cost of the land. The above is subject to repayment capacity of the customer. You may apply for land purchase and construction of loans simultaneously. In such cases we offer up to 85% of the cost of land and construction.

Maximum Term 15 years subject to your 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 co-applicants need not be co-owners.

Adjustable Rate Home Loan Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your loan may change. However, the EMI on the home Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your loan may change. However, the EMI on t Adjustable Rate Home Loan Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if
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there is a change in RPLR, the interest rate on your 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.

Current RPLR of land

purchase loan
RPLR: 16.00

Land loans Up to and including Rs 30 lacks Rs.30.01 lacks to Rs.75 lacks

Fixed rates% 12.25 12.25

Variable rates% 10.50 10.75

Basis% RPLR - 5.50 RPLR - 5.25

*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.

1.3.7f. LOANS TO PROFESSIONALS FOR NON RESIDENTIAL PREMISES (NRP)

Purpose
Purchase, construction, improvement of office. Clinic Eligible Doctors Chartered Accountants Lawyers Other self-employed professional
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Maximum loan 85% of cost of the property Maximum term 10 years improvements five years

Documents Needed For NRP

Application form with photograph Identity and Residence Proof Education Qualifications Certificate and Proof of business existence Last 3 years Income Tax returns (self and business) Last 3 years Profit /Loss and Balance Sheet Last 6 months bank statements Processing fee cheque

1.3.7g. HOME EQUITY LOANS HDFC Home equity Loans helps you encash the present market value of the property by taking a loan by mortgaging the property. The end usage of the funds will not be monitored by HDFC.however; the funds should not be used for speculation or any illegal purposes. Loans can be advanced against any freehold or leasehold properties that have a clear, marketable title. Loans can be repaid on an EMI basis or on a simple interest basis. Moreover, the loan shall be approved only in respect of units that are self occupied; units which are rented out are not covered under this scheme. Initially loans will be granted only to individuals against residential properties in Mumbai, New Delhi, Chennai, Calcutta, Bangalore and pune.

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1.3.7. h. TOP - UP LOANS This product offers an existing resident Indian customer a loan against the mortgage of the existing property. It helps in encashing the investment in a house without having to dispose it off to fund various needs related to Higher Education, Purchase of Furniture, Business Requirements, etc. The maximum loan amount under this product is 60 % of the market value of the property less the outstanding loan and is subject to the current loan eligibility. The maximum term of the loan is 10 years. Top up loans can given after 1 to 2 years [based on our discretion], of the final disbursement of the existing loan or upon possession/completion of the existing financed property. E.g.: Existing outstanding Loan Current market value of property Maximum loan eligibility Rs 3 lack. Rs 10 lacks 60% of market value i.e. Rs 6 lacks Rs 6 lacks less Rs 3 lacks = Rs 3 lacks

Actual Loan Eligibility

Current RPLR Of Top up Loan

Variable rate% Basis% RPLR

RPLR: 16.00

Applicable Rate (Monthly Rest Basis) Top Up 11.75 RPLR 4.25%

*The above rates are subject to change without notice

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Documents needed for approval

Customer can download the Application Form and submit along with the following documents for an approval of loan.

Salaried Customers Application form with photograph Identity and Residence Proof Latest Salary-slip Form 16

Self Employed Professionals Application form with photograph

Self Employed Businessman Application form with photograph

Identity and Residence Proof

Identity and Residence Proof

Education Qualifications Certificate Education Qualifications Certificate and Proof of business existence Last 3 years Income Tax returns (self and business) and Proof of business existence

Business profile

Last 3 years Income Tax returns Last 6 months bank Last 3 years Profit /Loss and statements Balance Sheet (self and business) Last 3 years Profit /Loss and Balance Sheet Processing fee cheque Processing fee cheque Processing fee cheque Detailed cost estimate from architect/engineer for the property to be extended Last 6 months bank statements Last 6 months bank statements (self and business)

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1.3.8 DOCUMENT TO BE SUBMITTED BY ALL APPLICANTS

I.3.8a DOCUMENT TO BE SUBMITTED FOR LOANS FOR CONSTRUCTION OF HOUSES A copy of the plan inclusive site plan approved by the Municipal

corporation/Municipality/Development Authority/Panchayat, as required. A copy of the building permit issued by the (Municipal Corporation/ Municipality/ Panchayat) as required. In Panchayat areas where approval of plan and building permit is not required a no objection certificate is to be submitted. A copy of the abstract estimate of the cost of construction prepared and certified by a qualified engineer/ architect at the current market rates. Original and a photocopy of Title Deed. No encumbrance Certificate in original from the Sub Registrar from 1st January 1993 till the date of submission of original title deed. Land tax receipt for the current financial year in original. Original of the parent document including release deed and power of attorney linking the chain of transaction for a minimum period of 13 years. 1.3.8b. DOCUMENT TO BE SUBMITTED, FOR LOANS FOR PURCHASE OF HOUSES A copy of the plan inclusive of site plan prepared by a qualified Engineer/ Architect. A copy of the building tax receipt. The Agreement for sale. A copy of the Title Deed of the present owner. No encumbrance Certificate in original from the Sub Registrar from 1st January 1993 till the Submission of original Title Deed. Land tax receipt for the current financial year in the name of the present owner in original. Original certified or Photostat copies of the parent documents including release deed and power of attorneys linking the chain of transaction for a minimum period of 13 years.
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 IMPORTANT: Loans will be disbursed after the sale deed is executed and the original deed along the encumbrance for the balance period till the date of submission of title deed is deposited with HDFC OR Alternate security mutually agreed upon to be provided till the sale deed is deposited with the HDFC. 1.3.8c. DOCUMENT TO BE SUBMITTED FOR LOANS FOR PURCHASE OF LAND. A copy of the agreement for sale. A copy of the title deed of the present owner. No encumbrance Certificate in original from the Sub Registrar from 1st January 1993 till the Submission of original Title Deed. Original certified or Photostat copies of the parent documents including release deed and power of attorneys linking the chain of transaction for a minimum period of 13 years. IMPORTANT: Loans will be disbursed after the sale deed is executed and the original deed along the encumbrance for the balance period till the date of submission of title deed is deposited with HDFC. OR Alternate security mutually agreed upon to be provided till the sale deed is deposited with the HDFC. 1.3.8d. DOCUMENT TO BE SUBMITTED FOR LOANS FOR IMPROVEMENT OF HOUSES. A copy of the plan prepared and certified by an Engineer/ Architect inclusive of site plan of the existing building. A copy of the latest Building Tax receipt for the existing building.
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 A copy of the abstract estimate of the cost of construction prepared and certified by a qualified engineer/ architect at the current market rates. Original and photocopy of Title Deed. No encumbrance Certificate in original from the Sub Registrar from 1st January 1993 till the Submission of original Title Deed. Land tax receipt for the current financial year in original. Original certified or Photostat copies of the parent documents including release deed and power of attorneys linking the chain of transaction for a minimum period of 13 years.

1.3.8e. DOCUMENT TO BE SUBMITTED FOR LOANS FOR EXTENSION OF HOUSES A copy of the plan of extension inclusive of site plan approved by Municipalcorporation/Municipality/DevelopmentAuthority/Panchayat, required. A copy of the building permit issued by the (Municipal Corporation/ Municipality/ Panchayat) as required. In Panchayat areas where approval of plan and building permit is not required a no objection certificate is to be submitted. Copy of the latest building tax paid receipt for the existing building. A copy of the abstract estimate of the cost of extension prepared and certified by a qualified engineer/ architect at the current market rates. Original and Photocopy of Title Deed. No encumbrance Certificate in original from the Sub Registrar from 1st January 1993 till the Submission of original Title Deed. Land tax receipt for the current financial year in original. Original certified or Photostat copies of the parent documents including release deed and power of attorneys linking the chain of transaction for a minimum period of 13 years. as

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1.3.8f. LIST OF DOCUMENTS FOR FLATS. Project approved by HDFC. Original Agreement with land owner for sale of undivided share in land. Original Agreement with Builder for construction of flats. Original receipts for payments made to Builder. No objection Certificate from Builder as per HDFCs Draft/ Alternate security mutually agreed upon till such time the original sale deed with respect to the undivided interest in land is registered and deposited with HDFC. Documents of Projects not verified by HDFC Copy of original Title Deed of land. Encumbrance Certificate for 13 years. Land Tax receipt. Copies of parent documents executed during the last13. Advocates Title Report. Building plan approved by the Corporation/ Municipality etc. Building permit/ NOC from Panchayat. 1. All documents referred to in (A) above. Alternate security mutually agreed upon till such time the original sale deed with respect to the undivided interest in land is registered and deposited with HDFC.

1.3.8g. DOCUMENTS TO BE SUBMITTED FOR SECOND MORTGAGE LOANS. (Government Employees/ Insurance company Employees who want to take loan from HDFC for completing the home for which the Government has sanctioned HBA) Copy of the plan inclusive of site plan approved by the Municipal Corporation/

Municipality Corporation/ Municipality/ Development Authority/ Panchayat and certified by Government/ Department. A copy of the detailed estimate submitted to the Government department, certified by the Government/ Department.
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 A copy of the building permit issued by the Municipal Corporation/ Municipality/ Panchayat. In Panchayat areas where approval of plan and building permit is not required, no objection certificate is to be submitted.

1. 2. 3.

Copy of the HBA sanction order. Copy of the order releasing the last installment of HBA. Photocopy of the title deed and mortgage deed.

1.3.8h. DOCUMENTS TO BE SUBMITTED FOR SECOND MORTGAGE LOANSEXTENSION. A copy of the plan of extension. A copy of the abstract estimate of the cost of extension. A copy of Building permit issued by Corporation/ Municipality/ or NOC from Panchayat. A copy of Building Tax Receipt and documents 1 to 6 of VII. Panchayat

1.3.8i. DOCUMENTS TO BE SUBMITTED FOR SECOND MORTGAGE LOANS-HOME IMPROVEMENT Copy of the abstract extension of cost of improvement. Copy of Building Tax Receipt and document 1 to 6 of VII.

1.3.8j. DOCUMENTS TO BE SUBMITTED FOR LOANS UNDER PARIPASSU ARRANGEMENT. (Bank Employee who want to take loan from HDFC for completing the home for which the bank has sanctioned HBA.) Copy of the plan inclusive of site plan approved by the Municipal Corporation/ Municipality/ Development Authority/ Panchayat and certified by the bank. A copy of the detailed estimate submitted to the bank and certified by the bank.

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 A copy of the building permit issued by the Municipal Corporation/ Municipal Corporation/ Municipality/ Panchayat. In Panchayat areas where approval of plan and building permit is not required no objection certificate is to be submitted. Copy of the HBA sanction order. Copy of the order releasing the last installment of HBA. Photocopy of the title deed.

1.3.9 SERVICE PROFILE

Home Loan Counseling- sharing of over 30 years of home loan experience HDFC has been a part of a 30 years journey with our 26 lakh customers. Our home loan counselors offer you the time tested advice. Be it legal documentation, project or builder approvals, and technical advice, we look forward to sharing with you and this service is absolutely free. HDFCs project approval facility provides our customers the comfort of purchasing properties from builders who have complied with all basic documentation. Door Step Services HDFC offer door step services. Please call HDFC home line call for our sales executive to assist you. It helps you to find your dream home. Wide product range It provides loans to meet all your requirements for you to make that house or a home. Home loans, improvement loans, loans to professionals for office or clinic, Home Equity Loans, Loan against rent receivables, short term bridging loan. Loan on adjustable rate and fixed rate. 2-in-1 Home Loans Multiple Repayment Option Step up Repayment Facility Helps young executives take a much bigger loan today based on an increase in their future income, this helps executives buy a bigger home today.

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 Flexible Loan Installments Plan Often customers, parents and their children wish to purchase properties together. The parent is nearing retirement and their children have just started working. This option helps such customers combine the incomes and take a long term home loan where in the installment reduces upon retirement of the earning parent. Tranche Based EMI Customers purchasing an under construction property need to pay interest(on the loan amount drawn based on level of construction) till the property is ready. To help customer save this interest, we have introduced a special facility of tranche based EMI. Customers can fix the installments they wish to pay till the property is ready. The minimum amount payable is the interest on the loan amount drawn. Anything over above the interest paid by the customer goes towards principal repayment. The customer benefits by starting EMI and hence repays the loan faster. Accelerated Repayment Scheme Accelerated Repayment Scheme offers you a great opportunity to repay the loan faster by increasing the EMI. Whenever you get an increment, increase in your disposable income or have lump sum funds for loan repayment. Increase in EMI means faster loan repayment. Saving of interest because of faster loan repayment. You can invest lump sum funds rather than use it for loan prepayment. The return from the investments also gives you the comfort of paying the increased EMI. Wide network of financing With over 200 offices, 90 reach programs- HDFC is able to provide home loans is over 240 locations in India. You can apply at your local HDFC office for properties in locations where we finance.

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 Post Disbursement services Income tax certificate to enable you to claim the tax benefits are sent to you. This service is absolutely free. Loan Repayment. ECS facility. Post dated cheques- No charges for replacement of cheques. Loan repayment at any HDFC offices.

1.3.10 COMPETITORS OF HDFC HOME LOANS

SBI Housing loan SBI housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! SBI home loans No cap on maximum loan amount for purchase/ construction of house/ flat option to club income of your 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 ago. Free personal accident insurance cover

Optional group insurance from SBI Life at concessional premium (upfront premium finance as part of project cost.) Interest applied on diminishing basis

Plus schemes which offer attractive packages with concessional interest rates to govt. employees, teachers, employees in public sector Oil companies. 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.

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No Administrative charges or application fee

Prepayment penalty is recovered only if the loan is pre-closed before half of the original tenure (not recovered for bulk payments provided the loan is not closed). Provision for downward refixation of EMI in respect of floating rate borrowers who avail housing loans of Rs. 5 lacks and above, to avail the benefit of downward revision of interest rate by 1% or more. In-principal approval issued to give you flexibility while negotiating purchase of a property. ICICI Housing Loan The largest home loan provider, ICICI bank understands how special creating a new home is for you and our home loans helps you to lay the foundation for your dream home. Home loans are best option; you can go for to finance a new home. ICICI offers you the most convenient and practical home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer distant dream. LIC Housing Finance Ltd LIC Housing finance Ltd is Indias one of the largest hosing finance companies. The company possesses one of the industrys most expensive marketing networks in India. 6 Regional offices and 115area offices backed by a chain of camp offices nationwide, an offshore office in Dubai and Kuwait and registered and corporate office at Mumbai. The main objective of the company is to provide long term finance to individuals for purchase/ construction/ Repair and renovation of new/existing flats/ houses HSBC Home Loans HSBC home loans make it easier for you to move in as soon as possible without putting a strain on your wallet. It offers you loans ranging from Rs.5 lacks to Rs 3 crore.

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1.4 RESEARCH METHODOLOGY

1.4.1 RESEARCH METHODOLOGY Research methodology is the way of doing a research. It is the plan which a researcher prepares well in advance before the data collection. With the help of it a researcher tends to overcome the difficulties which could possibly occur at the time of conducting the research. A good research methodology takes into account all the parameters like the time and budget available for conducting the research.

1.4.2 OBJECTIVES OF THE STUDY The objective of this study is to find out the customer awareness and customer preferences of home loans in Ernakulum.

Primary Objectives
To find out the level of awareness of different types of home loan. To find out the preferences of customers in availing home loans. To find out ways to increase the awareness level of customers about different banks who provides home loans.

Secondary Objectives
To determine the related services provided by the banks. To determine the frequency of consuming home loan. To find out the procedures and formalities followed by each bank. To give suggestions for improving the home loan services of the company.

1.4.3 RESEARCH DESIGN Research design is the blue print of a research. A simple design is a definite plan in obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. The study was exploratory. Since the study is aimed at determining the customer awareness and customer preferences of home loans and the customer
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under study is the person who is looking forward to avail the home loan, the population is unknown. It is a descriptive research as the study describes the awareness level and preferences with regard to home loans.

1.4.4 SOURCES OF DATA The study required data from both primary and secondary sources: Primary source The primary data required for the study were collected by administering structured questionnaire. Secondary source An exhaustive literature survey was conducted to get familiarized with the research procedures. The secondary data were collected from company records, journals, organization manual, company website, internet and library.

1.4.5 DATA COLLECTION TOOL The primary data required for the study were collected from the customers which includes the households, builders and businessmen in Ernakulum by administering structured questionnaires. The required data were collected by administering the questionnaire personally to the respondents. The instrument used for the study was a structured questionnaire. The questionnaire was structured among a few respondents who were selected randomly from the population. After that a modified set of questionnaire was prepared. The questionnaire consisted of 14 questions and it was framed in English.

Sampling method:
The population of the study comprised of all households, builders, and business men in Ernakulum. The descriptive studies are the one that aims at describing accurately the characteristics of the group, community, or people. A researcher may be concerned with

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discriminating the proportion of people in a particular who hold the certain views and attitude. In this study descriptive research design is used. The research study was descriptive in nature. Descriptive research studies which are concerned with describing the characteristics of a particular individual or a group. Studies concerned with specific predictions with narrations of fact and characteristics concerning individual

Research Approach
Survey method was used for this study. The study was based upon the opinion given to the customers mainly consisting of households, builders and business men in Ernakulum. As it is not possible to survey the entire population elements, sample survey was adopted.

1.4.6SAMPLING DESIGN

a) Population:
The population of the study comprised of all households, business people, and the builders in Ernakulum.

b) Sampling unit:
The study was focused on the households, business people, and the builders in Ernakulum. The required data were collected from 100 respondents.

c) Sample Size:
The study was focused in Ernakulum city. As the time allotted for the study was two months, the sample size was fixed as 100 which comprised of households, builders, and businessmen. The sample selection was based on convenience sampling.

f) Contact method
The respondents were contacted personally and the data required for the study were collected by administering structured questionnaires.

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1.4.7 STATISTICAL TOOLS The collected data was subjected to statistical analysis. The data was carefully edited, coded, classified and tabulated and analyzed with the help of percentage analysis, correlation, and qui- square methods. 1.4.8PERIOD OF STUDY The period of study under taken to complete this project was 2 months from 16th April 2011 to 31st may 2011.

1.5 SCOPE OF THE STUDY

Home is the basic need of any person. So the importance of studying consumer awareness and preferences of home loans are much high. Different banks offer different types of home loans at different rates. If the consumers have proper awareness about home loans they can easily satisfy their needs. The preferences of people are different and highly depend on their requirements. So the study about customer awareness and customer preferences in home loan market is necessary because it will help to provide customized services.

1.6 LIMITATION OF THE STUDY

Difficulty in getting appointments due to the busy schedule of the respondents in the builders firm Limited time allotted for completing the study restricted detailed enquiry on every subject that need to be analyzed. The respondents were busy. Inability to exclude the extraneous variable that encroaches into the study. Time constraint

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1.7 CHAPTERISATION
The First chapter deals with the introductory details regarding the study. This chapter includes the statement of the problem, background of the problem, and also depicts the industry and company profile giving detail descriptions about the product portfolio finally about the research methodology used for the study. It tells about the ways used to conduct the research, the sampling plan, sampling design, sampling size, sampling unit etc. The Second chapter deals with theoretical back ground and literature review. There is a brief description about the meaning of customer awareness and customer preferences. And also depicts the 25 quotes from different authors. The Third chapter is regarding the data analysis. The data collected was tabulated and various tests were conducted on the collected data to interpret valuable information. The Fourth chapter of this report contains the findings of the study based on the analysis done. The Fifth chapter gives the suggestions for the company for reap better profit. And the final conclusions about the study.

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CHRTER 2 LITRATURE REVIEW

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2.1. CONSUMER DECISION MAKING PROCESS

Buyer decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. More generally, decision making is the cognitive process of selecting a course of action from among multiple alternatives. Common examples include shopping and deciding what to eat. Decision making is said to be a psychological construct. This means that although we can never "see" a decision, we can infer from observable behaviour that a decision has been made. Therefore we conclude that a psychological event that we call "decision making" has occurred. It is a construction that imputes commitment to action. That is, based on observable actions, we assume that people have made a commitment to effect the action. These basic psychological processes play an important role in understanding how consumers actually make their baying decisions. Kevin lane Keller1 states that smart companies try to fully understand the customers buying decisions process, all their experiences in learning, choosing, using and even disposing of a product.bissel developed its steam n clean vacuum cleaner based on the product trial experience of a local PTA group near corporate head quarters in grand rapids, Michigan, the result was a name change, color coded attachments, and an infomercial highlighting its special features. In general there are three ways of analyzing consumer buying decisions. They are:

Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances.

Psychological models - These models concentrate on psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences.

Consumer behavior models - These are practical models used by marketers. They typically blend both economic and psychological models.

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2.1.1 MODELS OF BUYER DECISION MAKING A general model of the buyer decision process consists of the following steps: 1. Problem recognition; 2. Information Search 3. Evaluation of Alternative 4. Purchase decision 5. Purchase 6. Post-purchase behavior/buyer's remorse (cognitive dissonance)

A. Problem Recognition: Perceiving a Need

Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts.

B. Information Search: Seeking Value

The information search stage clarifies the options open to the consumer and may involve Internal search Scanning ones memory to recall previous experiences with products or brands. Often sufficient for frequently purchased products. When past experience or knowledge is insufficient The risk of making a wrong purchase decision is high The cost of gathering information is low.

External search The primary sources of external information are:

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Personal sources, such as friends and family. Public sources, including various product-rating organizations such as Consumer Reports. Marketer-dominated sources, such as advertising, company websites, and salespeople

C. Alternative Evaluation: Assessing Value

The information search clarifies the problem for the consumer by

Suggesting criteria to use for the purchase. Yielding brand names that might meet the criteria. Developing consumer value perception A consumer's evaluative criteria represent both
o o

The objective attributes of a brand (such as locate speed on a portable CD player) The subjective factors (such as prestige).

These criteria establish a consumer's evoked set

o

The group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.

D. Purchase Decision: Buying Value

Which depends on such considerations?

Terms of sale Past experience buying from the seller Return policy.

Which can be influenced by?

store atmosphere time pressure

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a sale Pleasantness of the shopping experience.

E. Post-purchase Behavior: Value in Consumption or Use

In the words of Mithileshwar Jha 2 after the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features or hearing favorable things about other brands and will be alert to information that supports his or her decision. Marketing communications should supply beliefs and evaluations that reinforce the consumers choice and help him feel good about the brand. The marketers job therefore doesnt end with the purchase. Marketer must monitor post purchase satisfaction, post purchase action, post purchase product uses.

After buying a product, the consumer compares it with expectations and is either satisfied or dissatisfied.

Satisfaction or dissatisfaction affects

o o o

consumer value perceptions consumer communications Repeat-purchase behavior.

Many firms work to produce positive post-purchase communications among consumers and contribute to relationship building between sellers and buyers.

Cognitive Dissonance. The feelings of post-purchase psychological tension or anxiety a consumer often experiences

Firms often use ads or follow-up calls from salespeople in this post-purchase stage to try to convince buyers that they made the right decision. There are a range of alternative models, but that of AIUAPR, which most directly links to the steps in the marketing/promotional process is often seen as the most generally useful

Awareness - before anything else can happen the potential customers must become aware that the product or service exists. Thus, the first task must be to gain the attention of the target

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audience. All the different models are, predictably, agreed on this first step. If the audience never hears the message, they will not act on it, no matter how powerful it is

Interest - but it is not sufficient to grab their attention. The message must interest them and persuade them that the product or service is relevant to their needs. The content of the message(s) must therefore be meaningful and clearly relevant to that target audience's needs, and this is where marketing research can come into its own.

Understanding - once an interest is established, the prospective customer must be able to appreciate how well the offering may meet his or her needs, again as revealed by the marketing research. This may be no small achievement where the advertiser has just a few words, or ten seconds, to convey their message.

Attitudes - but the message must go even further; to persuade the reader to adopt a sufficiently positive attitude towards the product or service that he or she will purchase it, albeit as a trial. There is no adequate way of describing how this may be achieved. It is simply down to the magic of the advertiser's art, or based on the strength of the product or services itself.

Purchase - all the above stages might happen in a few minutes while the reader is considering the advertisement; in the comfort of his or her favorite armchair. The final buying decision, on the other hand, may take place sometime later; perhaps weeks later, when the prospective buyer actually tries to find a shop which stocks the product.

Repeat Purchase - but in most cases this first purchase is best viewed as just a trial

purchase.

Only if the experience is a success for the customer will it be turned into repeat purchases. These repeats, not the single purchase which is the focus of most models, are where the vendors focus should be, for these are where the profits are generated. The earlier stages are merely a very necessary prerequisite for this. This is a very simple model, and as such does apply quite generally. Its lessons are that you cannot obtain repeat purchasing without going through the stages of building awareness and then obtaining trial use; which has to be successful. It is a pattern which applies to all repeat purchase products and services; industrial goods just as much as baked beans. This simple theory is rarely taken any further - to look at the series of transactions which such repeat purchasing implies. The consumer's growing experience over a
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number of such transactions is often the determining factor in the later - and future - purchases. All the succeeding transactions are, thus, interdependent - and the overall decision-making process may accordingly be much more complex than most models allow for.

Personal bias in decision making

Selective search for evidence - We tend to be willing to gather facts that support certain conclusions but disregard other facts that support different conclusions.

Premature termination of search for evidence - We tend to accept the first alternative that looks like it might work.

Conservatism and inertia - Unwillingness to change thought patterns that we have used in the past in the face of new circumstances.

Experiential limitations - Unwillingness or inability to look beyond the scope of our past experiences; rejection of the unfamiliar.

Selective perception - We actively screen-out information that we do not think is salient. Wishful thinking or optimism - We tend to want to see things in a positive light and this can distort our perception and thinking.

Regency - We tend to place more attention on more recent information and either ignore or forget more distant information.

Repetition bias - A willingness to believe what we have been told most often and by the greatest number of different of sources.

Anchoring - Decisions are unduly influenced by initial information that shapes our view of subsequent information.

Group think - Peer pressure to conform to the opinions held by the group. Source credibility bias - We reject something if we have a bias against the person, organization, or group to which the person belongs: We are inclined to accept a statement by someone we like.

Incremental decision making and escalating commitment - We look at a decision as a small step in a process and this tends to perpetuate a series of similar decisions. This can be contrasted with zero-based decision making.
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Inconsistency - The unwillingness to apply the same decision criteria in similar situations. Attribution asymmetry - We tend to attribute our success to our abilities and talents, but we attribute our failures to bad luck and external factors. We attribute other's success to good luck, and their failures to their mistakes.

Role fulfillment - We conform to the decision making expectations that others have of someone in our position.

Underestimating uncertainty and the illusion of control - We tend to underestimate future uncertainty because we tend to believe we have more control over events than we really do.

Faulty generalizations - In order to simplify an extremely complex world, we tend to group things and people. These simplifying generalizations can bias decision making processes.

Ascription of causality - We tend to ascribe causation even when the evidence only suggests correlation. Just because birds fly to the equatorial regions when the trees lose their leaves, does not mean that the birds migrate because the trees lose their leaves.

2.2. CONSUMER AWARENESS Awareness is the state or ability to perceive, to feel, or to be conscious of events, objects or sensory patterns. In this level of consciousness, sense data can be confirmed by an observer without necessarily implying understanding. More broadly, it is the state or quality of being aware of something. In biological psychology, awareness is defined as a human's or an animal's perception and cognitive reaction to a condition or event. According Tom Peters 3 it is not the entrepreneur or manager who runs a business enterprise, but consumers, customers. It is the consumers who determine the destiny of a business organisation.if there is no customer, there is no business. Thus the growth, prosperity or even the existence of a business enterprise depends up on consumers. Customer awareness means the person who having knowledge of; "he had no awareness of his mistakes"; "his sudden consciousness of the problem he faced"; "their intelligence and general knowingness was impressive" Consumer awareness programmes is defined as Making existing and potential customers knowledgeable about products/services, consumer awareness programs create more informed buying decisions. Consumers cannot purchase products and services if they do not know they exist. A lack of
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consumer awareness in any industry can harm sales. If specific products and services are better known, those products and services will remain on the front line in sales. Therefore, it is important to generate consumer awareness programs that will introduce and make the target audience aware of the products and services a company offers. Consumer awareness programs can be initiated through the utilization of flyers, brochures, television, radio, guides, fact sheets, information posted to a Web site, school programs, and other sources depending upon the topic and the message delivered. Awareness is a relative concept. An animal may be partially aware, may be subconsciously aware, or may be acutely aware of an event. Awareness may be focused on an internal state, such as a visceral feeling, or on external events by way of sensory perception. Also used to distinguish sensory perception is the word "awarement." "Awarement" is the established form of awareness. Once one has accomplished their sense of awareness they have come to terms with awareness. Self-awareness Popular ideas about consciousness suggest the phenomenon describes a condition of being aware of one's awareness or, self-awareness. Efforts to describe consciousness in neurological terms have focused on describing networks in the brain that develop awareness of the qualia developed by other networks. In the words of Anthony p. Cohen4 self awareness theory states that when we focus our attention on ourselves, we evaluate and compare our current behavior to our internal standards and values. Thomas s. Duval 5 points out that various environmental cues and situations induce awareness of self, such as mirrors, an audience, or being videotaped or recorded. These cues also increase accuracy of personal memory. Basic awareness Basic awareness of one's internal and external world depends on the brain stem Bjorn Merker, 6 an independent neuroscientist in Segeltorp, Sweden, argues that the brain stem supports an elementary form of conscious thought in infants with hydranencephaly. "Higher" forms of awareness including self-awareness require cortical contributions, but "primary consciousness" or "basic awareness" as an ability to integrate sensations from the environment with one's immediate goals and feelings in order to guide behavior, springs from the brain stem which human beings
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share with most of the vertebrates. Psychologist Carroll Izard

emphasizes that this form of

primary consciousness consists of the capacity to generate emotions and an awareness of one's surroundings, but not an ability to talk about what one has experienced. In the same way, people can become conscious of a feeling that they can't label or describe, a phenomenon that's especially common in pre-verbal infants Changes in awareness Schulman GL, Corbetta M 8 states that changes in awareness are the ability to consciously detect an image when presented at near threshold stimulus varies across presentations. One factor is baseline shifts due to top down attention that modulate ongoing brain activity in sensory cortex areas that affects the neural processing of subsequent perceptual judgments. Such top down biasing can occur through two distinct processes. An attention driven baseline shift in the alpha waves, and a decision bias reflected in gamma waves (Wyart V, Tallon-Baudry C 9) Covert awareness According to Disterhoft JF
10

covert awareness is the knowledge of something without knowing

it. Some patients with specific brain damage are for example unable to tell if a pencil is horizontal or vertical. They are however able to grab the pencil, using the correct origination of the hand and wrist. This condition implies that some of the knowledge the mind processes is delivered through alternate channels than conscious intent. Brand awareness Brand awareness is a marketing concept that measures consumers knowledge of the brands existence. At the aggregate (brand) level. It refers to the proportion of consumers who know of the brand. Brand awareness means the extent to which a brand associated with a particular product is documented by potential and existing customers either positively or negatively. Creation of the brand awareness is the primary goal of advertising at the beginning of any product life cycle in target markets, and has influence on buying behavior of a buyer. There has been discussion in industry and practice about the meaning and value of various brand awareness metrics, recently an empirical study conducted by Laurent, Gilles, Jean-Noel Kapferer,
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11

and this study appeared to

put a suggestion for all that awareness matrix were systematically related, simply reflecting their difficulty, in the same way that certain questions are more difficult in academic exams. Brand recall is the extent to which a brand name is recalled as a member of a brand, product, or services class, as distinct from brand recognition. While brand awareness scores tend to be quite stable at aggregate level, individual consumers show considerable propensity to change their responses to recall based brand awareness measures. Robert W.Pratt
13 12

states that for top of mind recall

measures , consumer give the same answer in two interviews typically only 50%the time.N.R Bernard points that similar low levels of consistency in response have been recorded for other

cues to elicit brand name responses. 2.2.1 INDEPENDENT AND DEPENDENT VARIABLES IN CONSUMER AWARENESS Independent variables 1. Organizational responsibility towards consumers. 2. Promotional activities. Dependent variables 1. Customer awareness towards their ethical rights. 2.3. CUSTOMER PREFERENCES The term preferences is used in a variety of related, but not related, but not identical, ways in the scientific literature. This makes it necessary to make explicit the sense in which the term is used in different social sciences. In psychology, preferences could be conceived of as an individuals attitude towards a set of objects, typically reflected in an explicit decision making process (Lichtenstein & Slovic) 14. Alternatively, one could interpret the term preference to mean evaluative judgment in the scene of liking or disliking an object (e.g., Scherer K.R) 15. Which is the most typical definition employed in psychology. However, it does not mean that a preference is necessary stable over time. Preference can be notably modified by decision making process, such as choices (Brehm), even in an unconscious way.

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According to Bateman ET Al16 Consumers preferences specify in more detail in their needs. Preference are an individuals offset between benefits and costs and are expressed when a person is willing to give up something (cost) to receive something else (benefit), preference are not only what people want (attributes, choices)but also about the priorities they have in mind for it. By measuring how much an individual is willing to pay for a stated goods or services, their preference are assumed to be revealed. Willingness to pay (WTP) technique elicits individuals money valuations of costs and benefits, in other words the amount of money they are willing to pay to gain or something. Related to this concept is the concept of willingness to accept (WTA).Bateman Et Al providing a useful overview of approaches for the economic valuation of goods and services. One of the examples of the use of choice experiments to elicit customer preferences can be found in Australian literature D. Hatton MacDonald ET AL17. A study performed by CSIRO investigated customer preferences for the purpose of new customer standard setting regarding continuity of supply in the Australian water industry. It is the act of Preferring, or the state of being preferred; the setting of one thing before another; precedence; higher estimation; predilection; choice; also, the power or opportunity of choosing; as, to give him his preference. Preferences are special privileges granted by law or policy based upon an individual's race, gender or ethnicity. Common synonyms are targets, goals and

quotas. Affirmative Action was originally intended to prevent such discrimination. But over the course of the past 25 years Affirmative Action has largely been subverted by the quota industry (racial special interests) into a program of discriminatory preferences. The application theory developed by Leon g. shiffman and Leslie kanuk 18 explained in his basic structural model of consumer preference formation, it is a comprehensive integration of the attitude components that ultimately are the building blocks of preference. The model is designed to provide a better understanding of how customer preference is formed and, correspondingly, to provide the means to accurately predict customer preference behavior. Figure one provides an overview of customer preference formation from the theory of reasoned action point of view. The term Preferences was invented as a substitute for targets, goals and quotas because the latter had correctly come to be perceived as negative and discriminatory. Group Preferences began appearing in widespread use during the 2000 presidential campaign. It was invented because preferences had inevitably come to carry the same negative connotations as targets, goals and
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quotas. Group Preferences has more than one meaning, depending upon your political party and your audience.

Neutral Meaning: Group Preferences literally encompasses all preferences, including race, gender, and ethnicity. In this context, to refer to group preferences is a convenient

shorthand and is easier than saying "racial, gender and ethnic preferences". This neutral definition is the least common usage of the term.

Pro-Quota Meaning: Supporters of quotas like to use Group Preferences because it allows them to specifically avoid referring to race, gender, ethnicity, or veteran's status. Racial Preferences, for example, evokes a much stronger emotional response than Group Preferences. In this context, the term is deliberately vague and is intended to convey a

positive connotation

Anti-Quota Meaning: Opponents of quotas use Group Preferences to mean any program or law which bestows special treatment upon an individual by virtue of his/her membership in a "group" -- in virtually all cases that group is defined by race, gender, or ethnicity. In this context, the term has a negative connotation because to grant special treatment based upon race, gender or ethnicity is unconstitutional. Preference is treated as a single concept in conversation analysis, but it has in fact developed into an assemblage of loosely related concepts. It has also been construed in a variety of mutually incompatible, and sometimes methodologically questionable, ways. This is due, at least in part, to confusion between preference in its everyday usage and preference as a technical notion. R.L. Oliver19 observed that customer satisfaction results from a process of internal evaluation that actively compares expectations before purchase of a product or services with perceived performance during and at the conclusion of a purchase experience. What we have referred to as functional and emotional performance elements Oliver defines as evaluate elements (expectance, satisfiers and attractors) that, in turn, comprise a single product or services evaluative experience. Sustained preference can be thought of as a series of experience interactions that are continuously being modified as the components of

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preference are modified over time. John McKean

20

, in an excellent book, customers are

people the human touch thinks of the organization customer interaction as a series of cascading touch points. Those touch points comprise the customer environment and it is through interacting with that environment that customer preference is formed. 2.4. FINANCIAL SERVICES Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. Brigham and Eugene
21

defined the financial market as a place where people and organizations

wanting to borrow money are bought together with those having surplus funds financial markets does not refer to a physical location. Formal trading rules and communication networks for originating and trading financial securities link market participants. Transferring of funds from the surplus sector to the deficit sector is the main functions of the financial market. Banking services The primary operations of banks include:

Keeping money safe while also allowing withdrawals when needed Issuance of check books so that bills can be paid and other kinds of payments can be delivered by post

Provide personal loans, commercial loans, and mortgage loans (typically loans to purchase a home, property or business)

Issuance of credit cards and processing of credit card transactions and billing Issuance of debit cards for use as a substitute for checks Allow financial transactions at branches or by using Automatic Teller Machines (ATMs) Provide wire transfers of funds and Electronic fund transfers between banks Facilitation of standing orders and direct debits, so payments for bills can be made automatically

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Provide overdraft agreements for the temporary advancement of the Bank's own money to meet monthly spending commitments of a customer in their current account.

Provide Charge card advances of the Bank's own money for customers wishing to settle credit advances monthly.

Provide a check guaranteed by the Bank itself and prepaid by the customer, such as a cashier's check or certified check.

Notary service for financial and other documents

Other types of bank services

Private banking - Private Banks provide banking services exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services. Private Banks often provides more personal services, such as wealth management and tax planning, than normal retail banks.

Capital market bank - bank that underwrite debt and equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products.

Bank cards - include both credit cards and debit cards. Bank of America is the largest issuer of bank cards.

Credit card machine services and networks - Companies which provide credit card machine and payment networks call themselves "merchant card providers

Foreign exchange services Foreign exchange services are provided by many banks around the world. The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchor of trading between a wide range of different types of buyers and sellers around the clock, with the exceptions of weekends. The foreign exchange markets determine the relative value of different currencies. Retail foreign exchange traders one of the players in it. McKay, peter A 22 pointing that individual retail speculative traders constitute a grooving segment of this market with the advent of retail forex platforms, both in size and

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importance. Currently, they participate indirectly through brokers or banks. Foreign exchange services include:

Currency Exchange - where clients can purchase and sell foreign currency banknotes. Wire transfer - where clients can send funds to international banks abroad. Foreign Currency Banking - banking transactions are done in foreign currency

Investment services

Asset management - the term usually given to describe companies which run collective investment funds. Also refers to services provided by others, generally registered with the Securities and Exchange Commission as Registered Investment Advisors.

Hedge fund management - Hedge funds often employ the services of "prime brokerage" divisions at major investment banks to execute their trades.

Custody services - the safe-keeping and processing of the world's securities trades and servicing the associated portfolios. Assets under custody in the world are approximately $100 trillion

Insurance

Insurance brokerage - Insurance brokers shop for insurance (generally corporate property and casualty insurance) on behalf of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry.

Insurance underwriting - Personal lines insurance underwriters actually underwrite insurance for individuals, a service still offered primarily through agents, insurance brokers, and stock brokers. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and annuities, life insurance, retirement insurance, health insurance, and property & casualty insurance.

Reinsurance - Reinsurance is insurance sold to insurers themselves, to protect them from catastrophic losses

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Other financial services

Intermediation or advisory services - These services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.

Private equity - Private equity funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest. The most successful private equity funds can generate returns significantly higher than provided by the equity markets

Venture capital is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business.

Angel investment - An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.

Conglomerates - A financial services conglomerate is a financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, retail banking, wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time. As a consequence, economic capital for a conglomerate is usually substantially less than economic capital is for the sum of its parts.

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Debt resolution is a consumer service that assists individuals that have too much debt to pay off as requested, but do not want to file bankruptcy and wish to payoff their debts owed. This debt can be accrued in various ways including but not limited to personal loans, credit cards or in some cases merchant accounts. There are many services/companies that can assist with this. These can include debt consolidation, debt settlement and refinancing.

2.5. MORTGAGE LOAN SERVICING Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type of loan and the terms negotiated between the firm and the investor seeking their services. Mortgage servicing became "far more profitable during the housing boom", and servicers targeted borrowers "less likely to make timely payments" in order to collect more late fees. Sonia Kalashnikov-Jessop 23famous book Balis cash property market keeps prices up explains that in many jurisdictions, through not all (Bali, Indonesia being one exception),it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. Coke Edward
24

commends that if he doth not pay, then the Land which is put in pledge upon

condition for the payment of the money, is taken from him forever, and so dead to him upon condition, & And if he doth pay the money, then the pledge is dead as to the Tenant" History Guinnance TW, Ghatak
25

m famous book economics of lending with joint liability

explains a clear cut idea about the history of mortgages. While the idea originated in Prussia in 1769, a Danish act on mortgage credit associations of 1850 enabled the issuing of bonds (Danish: realkreditobligationer) as a means to refinance mortgage loans. With the German mortgage banks law of 1900, the whole German empire was given a standardised legal foundation for the emission of pfandbriefe.an account from the perspective of development economics is available.

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Overview Servicers are normally compensated by receiving a percentage of the unpaid balance on the loans they service. The fee rate can be anywhere from one to twenty five basis points depending on the size of the loan, whether it is secured by commercial or residential real estate, and the level of service required. The net present value of the flow of payments received from servicing less the expected costs to servicers creates an asset which remains on the balance sheets of servicers. Since in refinancing periods loans are often quickly prepaid and hence servicing fees cease, the value of these assets is extremely volatile. There are economical loan servicing products that can also be purchased.

Mortgage Services
A mortgage is an agreement to give up an interest in something if you fail to perform some duty. Mortgage is a debt, but it provides a sense of ownership to the buyer. Technically, the buyer does not own the home until the note is paid off. If payments are missed, the bank that holds the loan may foreclose on the home. Therefore to keep the property, the buyer must be responsible to gain the benefits of home ownership. The mortgage provides tax incentives involving write-offs and gives more power to the direction of the neighbourhood. For instance, a home association listens to needs of owners because of its vested interest. A mortgage is huge investment in one's future. It can be a financial hardship or a gold mine for some people. Property values vary depending on areas, and mortgage rates can vary depending on banks. A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan. A home buyer or builder can obtain financing (a loan) either to purchase or secure against the property from a financial institution, such as a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.

68

Customized and Comprehensive Mortgage Loan Services

The mortgage lending business is becoming increasingly competitive. Margins are under pressure. Customer expectations continue to grow. Lending products are increasingly commoditized. Managing financial and operational risk and regulatory compliance are more complicated than ever. You need more from your operations and technology to stay ahead of the curve, grow revenue, reduce costs and enhance customer service. HP's Mortgage Loan Services provide credit granting institutions with the full continuum of mortgage loan administration as well as regionally compliant processing systems, branded private label customer interaction management and variable pricing options. We work with our clients to develop a business outcome focused plan that enables them to achieve their goals through the range of flexible solutions we offer. 2.6. HOME LOANS An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk). The housing sector plays an important role in the economic development of the country. Every rupee invested in housing adds 78 paisa to the GDP. Over 269 industries are directly or indirectly dependent on the housing sector. There is an estimated shortage of 20 million housing units in the country with an estimated investment requirement of over Rs 1500 billion. In this context it is important to note that that the organized housing finance industry barely accounts for 30% of the home loans disbursed in the country. The major players in Indian housing finance industry are the Housing Finance Companies (HFCs), Scheduled Commercial Banks, and Co-operative Banks. The last few years have seen the home loans market growing at a CAGR of over 30 percent. The growth has been mainly fuelled by certain fiscal, social and regulatory drivers:

69

Changes in demographic profile including increase in the rate of household formation due to structural shift from joint family system to nuclear family

Ever increasing middle class, migration of population and increasing urbanization resulting in acute shortage of housing units

Increase in disposable income levels due to decrease in marginal tax rates and increase in total income levels

Tax benefits and other fiscal incentives announced in the Union Budgets Increasing affordability of housing property purchase due to declining interest rates and stable property prices

Decline in the average house cost to annual income ratio to around 4-5 from 11-14 during the last decade resulting in an affordable EMI as a percentage of monthly income

Aggressive lending by banks to the housing sector due to lower credit off take by the corporate sector, attractive spread and lower non performing asset

70

REFERENCES

1.

Kevin lane Keller (2010) E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College marketing management a south Asian perspective,158 ,171, 183.

2.

Mithileshwar Jha (2010) Marketing Professor FPM (Fellow Programme in Management), IIM Ahmadabad, India, 1985 "Connecting with Rural Customers:
Developing Customer Sense", The TMTC Journal of Management,150,165

3.

Thomas j tom peters (1982) (born November 7, 1942) is an American writer or business management practices, best known for in search of excellence (coauthored with Robert H. Waterman).

4. 5. 6.

Anthony .p. Cohen (1994) is a British social anthropologist. Self consciousness an attractive anthropology of identity. Thomas s duval (2001) self awareness and casual attributions, pi, springer. Bjorn merker (2007) Swedish citizen born May 15, 1943 in Tetschen (now Czech Republic) is a neuroscientist and an independent interdisciplinary scholar educated in USA, now living in southern Sweden.

7.

Carroll Ellis lzard. (2001) born in 1924 is an American psychologist known for his contributions to differential emotional theory (DET).

8. Schulman Gl corbetta M (2007) asymmetry of anticipatory activity in visual cortex predicts the locus of attention and perception, journal neurosci, 27(52). 9. Wyart v talon-baudry c (2009) how ongoing fluctuations in human visual cortex predict perceptual awareness baseline shift versus decision bias, journal of neuroscience 29 (27); 8715-8725. 10. Disterhoft JF (1998) Hippocampus 8(6); 620-6. 11. Laurent, Giller, Jean-Novel Kapferer (1995) the underlying structure of brand awareness scores, journal of marketing science. conditioning, awareness and the hippocampus.

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12. Robert w Pratt (1971) stability of appliance brand awareness, journal of marketing research, 85-9. 13. Nr Bernard (1997) the variability of attitudinal repeat-rates, international journal of research in marketing, 437-50. 14. Lichtenstein s &slovic p (2006) the construction of preferenceNewyork, Cambridge university press. 15. Scherer K, R (2005) what are emotions and how can they be measured. Social science information, 44,695,729. 16. Bateman Et Al (2002) prevention of diarrheal through improving hygiene behaviours, EHP joint publications. 17. D Hatton MacDonald Et Al (2003) opportunity to improve water trading in south east catchment of South Australia, water policy.5(2):127-146. 18. Leon g shiffman and Leslie lazer kanuk (2009) consumer perception and consumer behaviour.65 -414. 19. Rl Oliver (1994) exploratory study of satisfaction and perceived quality. 20. John McKean (1996) a career in historical studies &architectural criticism, in Giancarlo decarlo layered places. 21. Brigham, Eugene (1971) a graduator research professor emeritus at the university flora. Managerial finance and managerial economics.9-101. 22. McKay, peter A (2007) scammers operating on periphery of CFTCs domain lure little guy with fantastic promises of profits the wall street journal (Dow Jones and company). 23. Sonia Kolensnikov-Jessop (Jan 2009) Balis cash property market keeps prices up. International herald tribune .retrieved 20091-31. 24. Coke Edward (2005) commentaries on the laws of England, 195-228. 25. Guinnance TW, Ghatak m (1999) the economics of lending with joint liability theory and practice, journal of development economics, volume 60, 195-228, university of Copenhagen, development of economic

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CHAPTER 3 DATA ANALYSYS AND INTERPRETATIONS

73

3.1DATA ANALYSIS
Data analysis is the act of transforming data with the aim of extracting useful information and facilitating conclusions. Depending on the type of data and the question, this might include application for statistical methods, curve fitting, selecting or discarding certain subsets based on specific criteria, or other techniques. In contrast to data mining, data analysis is usually more narrowly intended as not aiming to the discovery of unforeseen patterns hidden in the data, but to the verification of disproval of an existing model, or to the extraction of parameters necessary to adopt a theoretical model to realty. The study was conducted to find out the customer awareness and customer preferences of home loans. The target population for the study was the people in Ernakulum district and the sample size was fixed as 100. The study adopts random sampling in which the sample is selected randomly from the population The questionnaire was prepared in such a way as to collect maximum possible information from the respondents. The study attempted to collect data from respondents to find the customer awareness and customer preferences of home loans with the help of structured questionnaire. The collected data was edited carefully to avoid those with incomplete and partial information. Then it was coded and tabulated to form a master chart. After analyzing each and every question in the questionnaire, a study was conducted by the researcher to the respondent to explore their awareness and preferences about home loans. In this analysis each question was taken separately and analyzed. Tables and figures were used to analyze the data and to make proper and accurate interpretation.

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3.2AGE WISE CLASSIFICATION Age Below 25 25 40 40 60 Above 60 Total No. of respondents 9 48 39 4 100 Percentage 9 48 39 4 100

Table No.3.2.1: Gender wise classification

Percentage
50 45 40 35 30 25 20 15 10 5 0 Below 25 25 40 40 60 Above 60

Figure No.3.2.1: Gender wise classification

75

Interpretation
It can be seen from the above table that out of 100 respondents 9% are aged below 25. 48% are included in the age group 25 40. While 39% ar4e lying in the group 40 60, remaining 4% of them have an age more than 60.

3.3 GENDER WISE CLASSIFICATION OF RESPONDENTS. Gender Male Female Total No. of respondents 77 23 100 Percentage 77 23 100

Table No.3.3.1: Gender wise classification

Female 23%

Male 77%

Figure No.3.3.1: Gender wise classification

76

Interpretation
Out of 100 respondents 77% are males and 23% are females.

3.4 INCOME WISE CLASSIFICATION OF RESPONDENTS. Income 10,000 20,000 20,000 45,000 45,000 60,000 60,000 1,00,000 Above 1,00,000 Total No. of respondents 24 46 22 6 2 100 Percentage 24 46 22 6 2 100

Table No.3.4.1: Income wise classification

77

Percentage

50 45 40 35 30 25 20 15 10 5 0 10,000 20,000 20,000 45,000 45,000 60,000 60,000 1,00,000 Above 1,00,000

Figure No.3.4.1: Income wise classification

Interpretation
As from the above table, it can be seen that 24% of the respondents have an income between 10,000 20,000 and 46% have an income between 20,000 45,000. While 22% have an income between 45,000 60,000, 6% of them have income between 60,000 1, 00,000 and remaining g2% have an income more than 1, 00,000.

3.5 RESIDENTIAL STATUS OF RESPONDENTS. Status RI NRI Total No. of respondents 88 12 100 Percentage 88 12 100

Table No.3.5.1: residential status

78

NRI 12%

RI 88%

Figure No.3.5.1: residential status

Interpretation
From the above table, it can be seen that 88% respondents are RI and remaining 12% are NRIS.

3.6 USE OF MORTGAGE SERVICE. Response Yes No Total No. of respondents 100 100 Percentage 100 100

Table No.3.6.1: use of mortgage services.

79

No 0%

Yes 100%

Figure No.3.6.1: use of mortgage services.

Interpretation
As from the above table, it can be seen that 100% respondents were the users of the mortgage services.

3.7 FREQUENCY OF SERVICES TO BE OFFERED. Response Very often Often Rarely Total No. of respondents 24 42 34 100 Percentage 24 42 34 100

Table No.3.7.1: Frequency of Services.

80

Rarely 34%

Very often 24%

Often 42%

Figure No.3.7.1: Frequency of Services.

Interpretation
The above table shows that 24% of the respondents are of the opinion that they use the mortgage service very often. 42% respondents use them often and 34% of the respondents rarely use the same.

3.8 PURPOSE FOR THE USE OF MORTGAGE SERVICES. Response Personal use Business Education Construction of house Other purpose Total No. of respondents 19 17 2 58 4 100 Percentage 19 17 2 58 4 100

Table No.3.8.1: purpose for the use of mortgage Services.

81

Percentage 70

60

50

40

30

20

10

0 Personal use Business Education Construction of house Other purpose

Figure No.3.8.1: purpose for the use of mortgage Services.

Interpretation
It can be seen from the above table that 19% of the respondents use the mortgage services for personal use and 17% of them uses the same for business. While 2% of the respondents use it for education 58% of the respondents use the mortgage service for eth construction for house. Remaining 4% of the respondents are of the opinion that they use the same for other purposes.

82

3.9 AWARENESS OF DIFFERENT TYPES OF HOME LOANS. Response Yes No Total No. of respondents 74 26 100 Percentage 74 26 100

Table No.3.9.1 Awareness of different types of home loans.

No 26%

Yes 74%

Figure No.3.9.1 Awareness of different types of home loans

Interpretation
From the above table, it can be seen that 74% respondents are aware about different types of home loans and remaining 26% are not aware about it.

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3.10 AWARENESS OF DIFFERENT TYPES OF HOME LOANS IN THE MARKET. Types of loan Purchase loan Improvement loan Extension loan Top up loan Loan against property Land purchase loan Total No. of respondents 14 18 12 9 13 8 74 Percentage 18.91 24.32 16.21 12.16 17.56 10.84 100

Table No.3.10.1 Awareness of different types of home loans in the market

No. of respondents Percentage

25

20

15

10

0
Purchase loan Improvement loan Extension loanTop up loan against property Loan Land purchase loan

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Figure No.3.9.1 Awareness of different types of home loans in the market

Interpretation
It can be seen from the above table that 18.91% are aware about purchase loan and 24.32% respondents are aware about improvement loan. While 16.21% are aware about extension loan, 12.16% respondents says that they are aware about to up loan. According to 17.56% respondents they knew about loan against property and remaining g10.84% knew about land purchase loan.

3.11 SOURCES

OF

INFORMATION

AVAILABLE

TO

THE

RESPONDENTS Source Internet Phone message Television Brochures Employees Print media Total No. of respondents 2 17 4 34 11 6 74 Percentage 2.70 22.97 5.41 48.95 14.87 8.10 100

Table No.3.11.1 Sources of information

85

Percentage
50 45 40 35 30 25 20 15 10 5 0
Internet Phone message Television Brochures Employees Print media

Figure No.3.11.1 Sources of information

Interpretation
As from the above table, it can be seen that 2.70% of the respondents got information about home loans from internet and 22.97% got he same from phone message. According to 5.41%, their source of information is television. While 45.95% of the respondents say that they got information from brochures, 14.87% says that their source of information is employees and according to 8.10% respondent their source of information about home loans is print media.

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3.12 INSTITUTIONS PROVIDING HOME LOAN Institutions LIC Nationalized banks Private banks Mortgage companies Others Total No. of respondents 22 34 31 5 8 100 Percentage 22 34 31 5 8 100

Table No.3.12.1 Institutions providing home loans

Percentage 40

35

30

25

20

15

10

0 LIC Nationalized banks Private banks Mortgage companies Others

Figure No.3.12.1 Institutions providing home loans

87

Interpretation
As from the above table, it can be seen that 22% of the respondents are of the opinion that LIC is one of the institution that provides home loan. According to 34% respondents nationalized banks provide the same. While 31% respondents opine that private bank provides the home loan, 5% of the respondents are of the view that the mortgage companies provide home loan. According to 8% respondents other institutions also provide home loan.

3.13 AVAILING OF HOME LOAN Response Yes No Total No. of respondents 100 100 Percentage 100 100

Table No.3.13.1 Availing home loans

No 0%

Yes 100%

Figure No.3.13.1 Availing home loans

88

Interpretation
As from the above table, it can be seen that 100% respondents availed a home loan.

3.14 PURPOSE FOR TAKING HOME LOAN Purpose Personal use Business Home loan Education Other purpose Total No. of respondents 8 21 64 2 5 100 Percentage 8 21 64 2 5 100

Table No.3.14.1 purpose for taking home loan

89

Percentage
70

60

50

40

30

20

10

0 Personal use Business Home loan Education Other purpose

Figure No.3.14.1 purpose for taking home loan

Interpretation
From the above table, it can be seen that 8% of the respondents have taken the home loan for personal use and 21% of them were availing the same for business. While 64% respondents have used the same as home loan, 2% of them used it for education. 5% of the respondent used the loan for other purpose.

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3.15 INSTITUTIONS AWAILING HOME LOANS. Institution HDFC SBI Federal bank ICICI Axis bank Others Total No. of respondents 41 24 4 6 11 14 100 Percentage 41 24 4 6 11 14 100

Table No.3.15.1 Institutions availing home loans.

Percentage

45 40 35 30 25 20 15 10 5 0
HDFC SBI Federal bank ICICI Axis bank Others

Figure No.3.15.1 Institutions availing home loans.

91

Interpretation
From the above table, it can be seen that 41% of the respondents were availed the loan from HDFC and 24% of them availed the same from SBI. Only 4% of the respondents availed the same from federal bank. While 6% choose ICICI for this purpose 11% of the respondents had taken the loan from axis bank. Remaining 14% availed the loan from other institutions.

3.16 PLAN TO TAKE A LOAN IN FUTURE Response Yes No Total No. of respondents 48 52 100 Percentage 48 52 100

Table No.3.16.1 plan to take home loans.

No 52%

Yes 48%

Figure No.3.16.1 plan to take home loans

92

Interpretation
It can be seen from the above table that 48% respondents have a plan to take a loan in future and 52% of the respondents did not have such a plan.

3.17 COMPANY SELECT FOR THE HOME LOAN Company HDFC SBI Federal bank ICICI Axis bank Others Total No. of respondents 9 17 1 4 4 13 48 Percentage 18.75 35.41 2.08 8.33 8.33 27.08 100

Table No.3.17.1 company select for the home loan

93

Percentage

40

35

30

25

20

15

10

0
HDFC SBI Federal bank ICICI Axis bank Others

Figure No.3.17.1 company select for the home loan

Interpretation
It can be seen from the above table that 18.75% of the respondent will take the loan from HDFC and 35.41% will take it from SBI. Only 2.08% select federal bank for the same. There is an equal percentage of respondents who have selected ICICI and axis bank and the percentage of the same was 8.33. 27.08% have select other institution for the loan.

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3.18 FACTORS INFLUENCING THE SELECTION OF SERVICE PROVIDER

Table No. 17
Factors Door step service Fast processing Interest rate ECS Trust Others Total No. of respondents 4 61 13 4 12 6 100 Percentage 4 61 13 4 12 6 100

Table No.3.17.1 Factors Influencing the Selection of Service Provider

95

Percentage

70

60

50

40

30

20

10

0
Door step service Fast processing Interest rate ECS Trust Others

Figure No.3.17.1 Factors Influencing the Selection of Service Provider

Interpretation
As from the above table, it can be seen that 4% of the respondents are of the opinion that the door step service provided by the institution influenced them in the selection of the service provider. According to 61% of the respondents the fast processing factor had influenced them. While interest rate had an influence 13% of the

respondents ECS influenced 4% of the respondents. 12% of the respondents had been influenced by trust and remaining 6% of them were influenced by other factors.

96

3.19 PREFERENCE FACTORS OF HOME LOANS Factors Door step service Reputation Trust ECS Employees courtesy Disbursement time Interest rate Flexibility Prepayment penalty Procedural formality Proportion of financing Hidden charges Legal formality Very Less Not Important Neutral % % % % % important important important 11 34 29 12 27 54 74 38 16 38 27 78 12 27 19 32 41 38 26 22 45 39 51 59 10 39 14 14 15 7 24 10 4 12 4 1 2 5 22 17 20 27 7 9 4 10 21 6 8 6 27 26 16 4 12 4 1 3 12 1 5 4 17 11 27 14 22 26 34 19 14 17 16 29 32 15 20 12 41 7 4

27 12 7 9 4 10 4 1 3

27 38 24 54 26 10 74 22 38 45 4

16 39 12 21 12 38 51 27 59 78 10 12 39 4 1 2 5 6 8 6 1 5 4

27 17

97

Convenient products Proximity of the bank

36 10

47 27

6 7

6 48

5 8

36 47 10 27

6 7

6 48

5 8

Table No.3.18.1 preference Factors of home loans

Interpretation
It can be seen from the above table that the preference factor, door step services 11% of the respondents consider that it is very important. 27% of the respondents are of the opinion that it is important. Here 14% of the respondents became neutral. While 22% of the respondents consider it as less important, and according to 26% respondents the same is not important.

Having regarded the reputation factor, it can be seen from the above table that 34% of the respondents consider it a very important. Here also 14% respondents became neutral. While 17% consider it as less important, remaining 16% of the respondents consider it as not important.

As from the above table, it can be seen that 29% of the respondents consider trust as very important and 32% respondents consider it as important. 15% of the respondents became neutral. While 20% consider it as less important, remaining 4% of the says that the factor trust is not important.

From the above table, it can be seen that 13% of the respondents are of the opinion that the ECS is very important. According to 41% of them the same is important only 7% of the respondents became neutral. While 27% of the respondents consider it as less important 12% are of the view that the ECS is not important in the selection of the service provider.

Having regarded the factor employee courtesy, it can be seen from the above table that 27% respondents are of the opinion that employee courtesy is very important factor in the selection of
98

the service provider. According to 38% respondents the same is important. Here it is important to notice that 345% became neutral. While 7% of the respondents consider it as less important according to 4% respondents the same is not important.

In the case of disbursement time, it can be seen from the above table that more than half of the respondents (i.e. 54%) are of the opinion that eh factor disbursement time is very important. According to 26% this factor is important. Here also 10% respondents became neutral. While 9% of the respondents consider it as less important, according to 1% of the respondents it is not important.

While analyzing the factor interest rate, it can be seen from the above table that 74% of the respondents are of the opinion that the very important factor that influences the selection o the service provider is the rate of interest. According to 22% respondents the same is important and remaining 4% are of the view that it is less important. None of the respondents either became neutral or consider it as not important.

As from the above table, it can be seen that 38% of the respondents consider the factor flexibility as very important. According to 45% the same is important. 4% of the respondents became neutral. While 10% consider flexibility as less important, according to 3% respondents it is not important.

As from the above table, it can be seen that 16% of the respondents are of the opinion that the prepayment penalty is very important and according to the opinion of 39% it is important. Here 12% of them became neutral. While 21% consider it as less important remaining 12% consider it as unimportant.

Having regard the procedural formality it can be seen from the above table that 38% of the respondents are of the opinion that the procedural formality is very important. According to 51% of them it is important. Here only 4% respondents became neutral. While 6% of the respondents consider procedural formality as less important, according to 1% the same is not important.

99

It can be seen from the above table that 27% of the respondents are of the opinion that the proportion of financing is very important factor that influence the selection of the service provider. According to 59% respondents the same is important. Only 1% of them became neutral. While 8% of the respondents consider it as less important, remaining 5% of them consider it as unimportant.

From the above table it can be seen that 78% of the respondents are of the opinion that hidden charges is very important factor that influence the selection of the service provider. According to 10% respondents the same is important. Only 2% of the respondents became neutral as they did not express their opinion. While 6% of the respondents consider it as less important remaining 4% are of the opinion that the same is not important.

As from the above table, it can be seen that 12% of the respondents are of the opinion that the legal formality is very important. According to 39% the legal formality is important. 5% of the respondents became neutral and 27% are of the opinion that it is less important. Remaining 17% of the respondents says that the same is not important.

In the case of convenient products, it can be seen from the above table that 36% of the respondents are of the opinion that it is very important. According to 47% of them it is important. 6% of the respondents became neutral. While 6% of the respondents opines that it is less important,

remaining 5% respondents opines that it is unimportant.

It can be seen from the above table that 10% of the respondents are of the opinion that proximity of the bank is very important factor that influence the selection of he service provider. According to 27% respondents, the same is important. 7% of the respondents became neutral. While 48% of the respondents consider it as less important, remaining 89% respondents are of the view that it is not important.

3.19 CHI SQUARE ANALYSIS

100

The statistical test, in which the test statistics follow a chi-square distribution, is called the chisquare test. Therefore chi-square test is a statistical test, which tests the significance of difference between observed frequencies and the corresponding theoretical frequencies of a distribution, without any assumption about the distribution of the population. Chi-square test is one of the simplest and most widely used non-parametric test in statistical work. This test was developed by Prof. Karl Pearson in 1900. H0: H1: There is no significance difference between age and opinion about hidden charges. There is significance difference between age and opinion about hidden charges.

3.19.1 CONTINGENCY TABLE

Age Below 25 25 40 40 60 Above 60 Total

Very Important important 7 39 30 2 78 2 3 3 2 10

Neutral 0 1 1 0 2

Less Not important important 0 4 2 0 6 0 1 3 0 4

Total 9 48 39 4 100

3.19.2 OBSERVATION TABLE

101

O 7 2 0 0 0 39 3 1 4 1 30 3 1 2 3 2 2 0 0 0

E 7.02 0.9 0.18 0.54 0.36 37.44 4.8 0.96 2.88 1.92 30.42 3.9 0.96 2.34 1.56 3.12 0.4 0.08 0.24 0.16

(O E) 0.0004 1.21 0.0324 0.2916 0.1296 2.4336 3.24 0.0016 1.2544 0.8464 0.1764 0.81 0.0016 0.1156 2.0736 1.2544 2.56 0.0064 0.0576 0.0256

(O E ) 2 E 0.00005 1.344444 0.18 0.54 0.36 0.065 0.675 0.001667 0.435556 0.440833 0.005799 0.207692 0.001667 0.049402 1.329231 0.402051 6.4 0.08 0.24 0.16

102

12.91839
Table No.3.19.2 observation table

X2 = (O E)2 E

= 12.91

Calculated value Degree of freedom

= 12.91 = (c 1) (r 1) = (5 1) (4 1) = 12

Table value for 12 degree of freedom at 5% level of significance is 21.026. Calculated value is less than the table value. So we accept the null hypothesis. There is no significance difference between age and opinion about hidden charges.

H0 : H1 :

There is no significance difference between gender and opinion about door step service. There is significance difference between gender and opinion about door step service.

103

3.19.3 CONTINGENCY TABLE

Gender Male Female Total

Very Less Not Important Neutral important important important 8 3 11 21 6 27 11 3 14 14 8 22 23 3 26

Total 77 23 100

Table No.3.19.3 contingency table 3.19.4 OBSERVATION TABLE

O 8 21 11 14 23 3 6 3 8 3
TableNo.3.19.3observation table

E 8.47 28.79 10.78 16.94 20.02 2.53 6.21 3.22 5.06 5.98

(O E) 0.2209 60.684 0.0484 8.6436 8.8804 0.2209 0.0441 0.0484 8.6436 8.8804

(O E ) 2 E 0.02608 2.107819 0.00449 0.510248 0.443576 0.087312 0.007101 0.015031 1.708221 1.485017 6.394896

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X2 = (O E)2 = 6.39 E Calculated value = 6.39 Degree of freedom = (c 1) (r 1) = (5 1) (2 1) = 4 Table value for 4 degree of freedom at 5% level of significance is 9.488. Calculated value is less than the table value. So we accept the null hypothesis. There is no significance difference between gender and opinion about door step service.

3.20 CORRELATION CO-EFFICIENT Rank correlation is a method of measuring the relationship between two qualitative variables or attributes. Although one may apply rank correlation co-efficient to find the relationship between two quantitative variable like height and weight ranking the absolute values of the variables separately yet in order to find the relationship between tow quantitative variables one should use Karl Pearsons coefficient of correlation as it is more efficient than Spearmens rank correlation. H0 : There is no correlation between trust and reputation of firm. H1 : There is correlation between trust and reputation of firm.

3.20 .1 CORRELATION TABLE

Trust Options X
Very important

Reputation XY Y 34 19 986 608

X2

Y2

29 32

841 1024

1156 361

Important

105

Neutral Less important Not important Total

15 20 4 100

14 17 6 90

210 340 24 2168

225 400 16 2506

196 289 36 2038

Table No.3.20.1 correlation table

nxy - x y r= n x2 - (x) 2 n y2 - (y) 2

5 2168 100 90 5 2506 (100)2 5 2038 (90)2

10840 9000 12530 10000 10190 8100

106

1840 50.3 45.72

0.80

Interpretation
Correlation between trust and reputation of the firm are positively correlated. Therefore, there is correlation between trust and reputation of firm.

H0 : There is no correlation between reputation and interest rate. H1 : There is correlation between reputation and interest rate. 3.20.2 CORRELATION TABLE

Reputation Interest rate Options X

Very important

XY Y 74 22 0 4 0 100 2516 418 0 68 0 3002

X2

Y2

34 19 14 17 6 90

1156 361 196 289 36 2038

5476 484 0 16 0 5976

Important Neutral Less important Not important Total

Table No.3.20.2 correlation table

107

nxy - x y r= n x2-(x) 2 ny2-(y) 2

n x2 - (x) 2 n y2 - (y) 2

5 3002 90 100 5 2038 (90)2 5 5976 (100)2

15010 9000 10190 8100 29880 10000

6010 45.71 140.99

0.93

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Interpretation
Correlation between reputation and interest rates are positively correlated. Therefore, there is correlation between reputation and interest rate.

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CHAPTER 4 FINDINGS OF THE STUDY

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4.1 FINDINGS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Out of 100 respondents 48% respondents are aged between 25 40. 77% are males. 46% of the respondents have income between 20,000 45,000. 88% respondents are Resident Indians. 100% respondents are the users of the mortgage services. 42% respondents often use the mortgage service. 58% respondents use mortgage services for the construction of house. 74% respondents are aware of different types of home loans. 18% respondents are aware of improvement loan. 34% respondents got information about home loans from brochure. About 34% respondents nationalized banks provide home loan. 100% respondents availed a home loan. 64% respondents have taken the home loan for home loan. 41% respondents availed the loan from HDFC. 52% respondents have a plan to take a home loan in future. About 61% respondents the factor that influence the selection of the service provide is fast processing. 17. 18. 19. About 27% respondents door step services is important. About 34% respondents reputation is an important. About 32% respondents trust is an important factor that influences the selection of the service provider. 20. About 41% respondents ECS is an important factor.

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21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.

According to 38% respondents employee courtesy is an important influencing factor. About 54% respondents disbursement time is a very important factor. About 74% respondents interest rate is a very important factor. According to 45% respondents flexibility is an important influencing factor. About 39% respondents prepayment penalty is important. About 51% respondents procedural formality is important. About 59% respondents proportion of financing is important. About 78% respondents hidden charges is a very important factor. About 39% respondents legal formality is an important factor. According to 47% respondents convenient products is important. About 48% respondents proximity of the bank is less important.

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CHAPTER 5 SUGGESTIONS AND CONCLUSIONS

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5.1 SUGGESTIONS
1. Advertisements and press media were found to be more effective in promoting products in the home loan market. Hence companies should take necessary steps to increase the awareness level using these means of promotion.

2. Customers have a general perception that nationalized banks are believable and can be trusted. But in the case of private banks they also provide better services and have very fast proceedings. In order to capture major share in the market, companies should undertake programs to generate awareness and clarify the misleading notions in the minds of general public.

3. The private players should convey the message that there is no risk in relying on them as both private and nationalized banks come under the rules and regulations of RBI.

4. Interest rates, fast proceedings and extend of services were the prime concern of customers. Hence more emphasis should be given to provide customized services.

5. Most of the banks have high procedural formalities and high legal documentation. So the banks should take steps to reduce procedural delays in processing such formalities. 6. Banks provide home loans based on the persons income proof. Currently, the eligibility for the loan is calculated only based on the income proof. In the current scenario, most of the people earn high income but they do not have any income proof. So banks normally reject their proposal. Hence the loan providing companies may think of other alternatives also to satisfy the needs of such customers.

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7. The banks should give after sale services properly and maintain a good relationship with the existing customers which will help the company to increase market share in the long run.

8. The management should improve the procedures of home loans to make the customer feel that the procedures are simple and easy. The management should make sure that the customer is not facing any problems in getting HDFC home loans. This helps the customer to choose HDFC home loans without any bias. 9. The repayment period should not be less than15 years to attract customers, as majority of the respondents prefer a long repayment period. This information about the HDFC must reach through newspaper and magazines and other Medias. 10. Security of HDFC home loans should be more reasonable when looking from the side of customer. This helps the customer to approach HDFC easily. 11. As per the respondents opinion the interest rate should be flexible than the existing for them to afford and the management should improve the repayment procedure for the particular interest rate of HDFC home loans. By providing these procedure the public can easily select the HDFC home loan.

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5.2 CONCLUSION
Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all gathering funds little by little to afford ones dream. Home is one of the things that everyone wants to own. Home is a shelter to a person where he rests and feels comfortable. Many banks provide home loans to the people who want to own a home. The housing sector plays an important role in the economic development of the country. In India scope for the mortgage institutions are increasing day by day, increase in population and the scarcity of land has intensified the growth. Mortgage institutions are mainly comprised of nationalized banks, private banks and LIC. From the study, it was found that the customers prefer Nationalized Banks. The main reason behind is the trust towards the nationalized banks and their services. They also provide loans at low rates when compared to others. For competing in the market the private banks provide certain add on services to the customers. The main attracting factor is the door step services provided by the private banks. Due to rapid changes in banking in the latest years, organizations have been focusing on the sales of mortgage services, as profits in this field are higher than in other products. Competition is particularly intense and, for this reason, a more attentive marketing approach is required in all sectors. The research was carried out among 90 samples using a structured questionnaire. The conclusions that emerged from this research are especially important.

Due to intense advertisements and awareness programs lead by the major mortgage institutions, prospects doesnt find it difficult to increase their awareness horizon. From the study it is clear that the customer has profound knowledge about the home loans and other connected benefits around them. As most of the people are prejudice in nature, it is the major reason for showing a large scale inclination towards the nationalized banks. So thereby creating corporate image through advertisements, public relations and services, the private banks can shift the wave towards them and equate the market along with the nationalized banks.

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BIBLIOGRAPHY

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BIBLIOGRAPHY
BOOKS 1. A Sahni, Incorporating Of Financial Control in purchase Prediction,in Advances In Customer Research 21, ed.C.T Allen and D.R John, 1994. 2. Aaker.D, V.Kumar and G.S Day 1998, Marketing Research,sixth edition, Wiley, Singapore 3. Amma Carmine, The effect of perceived Advertising Cost on Brand Perceptions journal of consumer research, September 1990. 4. B.G.C. Dellaert, Investigating customers Tendency To Combine Multiple Shopping Purpose and Destinations, journal of Marketing Research (May 1998). 5. Bernard Berelson and Gary Steiner, Human Behavior: An Inventory of scientific Findings, Harcourt, Brace & World 1964. 6. C.R. Kothari: - Research Methodology and Techniques, New Delhi. 7. Donald R.Cooper, Pamela S.Shindler:-Business Research Methods, Eighth edition, Tata Mc Graw-Hill edition. 8. Federic e. Webster, Jr., Defining the new marketing concept Marketing management 2, no4 (1993), pp. 22-31. 9. R.Paneerselvam:-Research Methodology, Prentice Hall of India Pvt Ltd. 10. Ries, Al and J. Trout 1985, positioning: The Battle of Your Mind, McGraw- Hill, New York 11. Soniya S.Hamilton, you dont say sales and Marketing Management, October 1994. 12. Uma Sekaran :- Research Methods for Business, Fourth edition. 13. Urban, G.L and J.R Hauser1981, Design and Marketing of new products, Prentice Hall. 14. Urban, G.L. 1975, Perceptor: A model for product positioning, Management Science, vol.21, no.8, pp.858-71.

WEBSITES 1. www.wikipedia.com 2. www.hdfcsales.com 3. www.hdfchomeloans.co.in

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APPENDIX

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QUESTIONNAIRE FOR MEASURING THE CUSTOMER AWARENESS AND CUSTOMER PREFERENCES IN THE HOME LOAN MARKET

Date:

centre:

Dear sir/madam,

I am a fourth semester MBA student of Allama Iqbal Institute of Management, Peringammala, Trivandrum. In partial fulfillment of my course under Kerala University, I am conducting a study on Measuring the Customer Awareness and Customer Preferences in the Home loan market. I request your kind co-operation for the successful completion of the study. Your individual responses will be kept confidential and will be used only for the purpose of the study. Thanking you, Yours sincerely, ABDUL AMEER.VP

1. Do you use the mortgage services?

Yes If no skip to Q no.4 No

2. If yes, How frequently you use the service?

Very often often Rarely

3. What are the normal purposes for which you use mortgage services?
Personal use Construction of house business education

other purpose 120

4. Are you aware of different types of home loans?

Yes No

If no skip to Q no.7

5. If yes, what are the different types of home loans you are aware of? (mark all that apply)
Purchase loan Top up loan improvement loan Loan against property extension loan land purchase loan

Others (specify)

6. Where did you get the information about home loans? (mark all that apply)
Internet Brochures phone messages employees television Print media

7. In your view, which are the institutions that provides home loan?
LIC Nationalized banks private banks

Mortgage companies

Others (specify)

8. Have you ever availed a home loan?

Yes If no skip to Q no.11 No

9. If yes, for what purpose you have taken the home loan?
Personal use business home loan

Education

Other purpose 121

10. From which institution you availed the loan?

HDFC ICICI SBI AXIS BANK FEDERAL BANK OTHERS (specify)

11. Do you have plan to take a home loan in future?

Yes If no skip to Q no.15 No

12. If yes, from which company you will take the loan?
HDFC ICICI SBI AXIS BANK FEDERAL BANK OTHERS (specify)

13. What are the factors that influence the selection of the service provider? (mark all that apply)
Door step service ECS Trust fast processing Interest rate

Others (specify)..

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14. Please indicate the level of importance assigned to each of the following factors that influence the selection of the service provider? ( indicate your responses with a tick in the appropriate box)
Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Preference factors Door step services Reputation Trust ECS Employee courtesy Disbursement time Interest rate Flexibility Prepayment penalty Procedural formality Proportion of financing Hidden charges Legal formality Convenient products Proximity of the bank Very important Important Neutral Less important Not important

15. What are your suggestions in improving the services in the home loan market?

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CLASSIFICATION DETAILS AGE : Below 25 25-40 40-60 Above 60

SEX

Male

Female

INCOME

10000-20000 60000-100000

20000-45000 Above100000

45000-60000

OCCUPATION

: ..

RI OR NRI

RI

NRI

Thank you for your kind co-operation

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