research home loan

8/12/2019 Research Home Loan

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journalis ournal of Commerce

. 1 | No. 2 December| 2013

ww.researchjournali.com

Abstract

Housing is a primary human need next in importance only to food and clothing. A first priority for a

youngster who beings life is therefore to plan for a house. This takes precedence over other household

expenditure and creature needs. Housing, however, is a major expenditure and cannot be funded out of a

familys normal monthly income or savings. The prospective homeowner must look for a loan substantial in

size and so structured that he can repay it over a longer period of time, in many cases almost ones entire

working life. Loan is offered to a borrower to purchase or build a new house on the basis of his/her eligibility

and the banks lending rules. One of the important basic human needs is shelter. House is the ultimate dream

of every middle class family. Government gave encouragement for house finance subsidiaries by offering

number of tax concessions to individuals with the overall encouragement given to this sector, a number of

players entered in housing finance. One of the most important benefits of taking a home loan is the interest

rate that is allowed on the home loan. Fixed and variable interest rate options are also available for home

loans. Many financiers also offer home improvement loans at the same interest rate as they offer the home

loans.

Keywords: Housing loan, Types of housing loan, Attitude of housing loan borrowers.

1.

Introduction

Every human being aspires to have his own house to live in. After food and clothing, housing is the third

most important human requirement. On an average a person spends almost two-thirds of his life in a house

which is his sanctuary in his old age. Adequate housing is therefore a fundamental need of human beings and

an essential pre-requisite for physical, intellectual and mental development. Blessed are those who live in

their own house and fortunate are those who have the money to buy one. But all are not privileged to buy a

house of their own. For many such less privileged, buying a house has become possible in modern times

through housing loans.

Though shelter was enshrined as a fundamental right in the constitution, housing did not get the attention it

reserved. This was perhaps due to the fact that at that time nobody expected the problem of housing to

assume the present gigantic proportions. Proper housing, even at a lower scale, has never kept pace with the

minimum requirements of the people. The housing backlog has been compounded by the high rate of

population growth. Inadequate housing facilities have led to the rapid growth of slums and unauthorized

settlements, poor quality of services, housing land prices and increasing costs of construction. In rural areas

the situation is even more alarming. The Government and some public sector undertakings have been trying


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Highlights

Interest Rate 10.50%

Loan Amount Minimum ` 1,00,000

Maximum ` 10,00,000

Tenure Minimum 5 yearsMaximum 25 years

Time to Process Loan 7 days

Interest Rates

TenureInterest

Type

Interest

RateOffer

1-25 years Floating 10.50%Regular

(up to`30 Lakhs - 10.25 %

Above `75 Lakhs - 10.50 %)

2.3 Indian Overseas Bank (IOB)

The IOB bank ltd was established in 1937. It was founded as an institution to provide quality banking

services using state of the art technology. IOB Banking Corporation Ltd, the first bank in the country to go in

for Internet banking. The Bank Proposes to bring credit cards to the large, under -served population in rural

and semi-urban areas. Introduces first home loan securitization scheme of `58 core. IOB bank of housingfinance offers loan for construction and renovation of houses at the lowest interest rates which range from

10.30 % & 10.60% p.a.

Highlights



Maximum ` 15,00,000




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Interest Rates

TenureInterest

Type

Interest

RateOffer

1-35 years Floating 10.60%

Regular

(up to 1,00,000 Lakhs - 10.30%

Above ` 15,00,000 Lakhs - 10.60%)

3.

Private Sector Banks

Private sector banks are owned by private individuals or corporations. That is, the commercials which are

not owned by the government of India are known as private sector banks. These banks are under the control

of Reserve Bank of India. Under this study only deals with three kinds of private sector banks. That is

a) HDFC

b) FDB

c) TMB

3.1Housing Development Finance Corporation (HDFC)

HDFCa household name that Indians proudly reckon with Housing Development Finance Corporation

Limited (HDFC Ltd) was established in 1977 with the primary objective of meeting a social need was

encouraging home ownership by providing long-tem finance to households. Over the last three and a half

decades, HDFC has turned the concept of finance for the growing middle class in India into a world class

enterprise with excellent reputation for professionalism, and impeccable service. HDFC of housing finance

offers loan for construction and renovation of houses at the lowest interest rates which range from 10.40% -

10.65% p.a.

Highlights



Maximum ` 15,00,000




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Interest Rates

TenureInterest

Type

Interest

RateOffer

1-35

yearsFloating 10.60%

Regular

(up to `5,00,000 Lakhs - 10.40%

Above` 15,00,000 Lakhs- 10.65%)

3.2Federal Bank (FDB)

In the year 1931, Travancore federal bank was inaugurated at Sedum Purim, near Thiruvalla, Kerala. The 14

founders included. In 1947, the banks name was shortened from Travancore federal bank to federal bank. In

1970, the bank became a scheduled Commercial bank. Recently, it opened a representative office in Dubai.

Federal bank offers housing loan scheme assists borrowers for construction of house, acquisition of land &

construction of house, repairs, renovation, remodeling, extension of house, purchase of flat, purchase of houseplot for subsequent construction of house etc. The home borrowed loans interest rate of 10.25% - 10.75%

provided the Federal bank.

Highlights



Maximum ` 15,00,000

Tenure Minimum 1 years

Maximum 30 years


Interest Rates

TenureInterest

Type

Interest

RateOffer


Regular

(up to `1,00,000 Lakhs - 10.25%

Above ` 15,00,000 Lakhs - 10.75%)

3.3Tamilnadu Mercantile Bank (TMB)

Tamilnadu Mercantile Bank Ltd (TMB) was established on 11 thMay 1921. The thought of establishing a

bank for the Nadar business community was first proposed at the annual meeting of the Nadar Mahajana


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Sangam held at Thoothukudi in 1920. Originally known as the Nadar Bank Ltd., it changed its name to

Tamilnadu Mercantile Bank Ltd., provides commercial banking products and housing loan in India. The

borrowed home loans interest rate of 10.35%-11.10% provided the Tamilnadu Mercantile Bank.

Highlights


Loan Amount Minimum` 5,00,000

Maximum` 15,00,000

Tenure Minimum1 years

Maximum 35 years


Interest Rates

TenureInterest

Type

Interest

RateOffer


Regular

(up to 5,00,000 Lakes - 10.35%

Above ` 15,00,000 Lakes - 11.10%)

4.

Statement Of The Problem

In recent times, banks vie with one another in organizing loan melas with prior arrangement with the ultimate

of reaching new heights in the area of disbursal of loans. In the falling interest rate scenario it is quite

understandable that every bank in its pursuit of capturing the market is exploring all avenues to offer a

competitive rate to bring more and more customers in its fold. The home loan segment has received much

impetus and is balances stupendous growth. The recent budget offers welcome initiatives toward

infrastructure development.

In the liberalized economy both private and public sector banks are entering retail banking in the market. In

developed countries such as the U.S. and the U.K the credit parameters of a borrower are readily available and

hence, a scoring model is used to decide the credit worthiness of the borrowers. In India, since data is not

some readily available on the credit behavior a borrower, loan underwriting standard have evolved keeping in

mind the current environment.


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In the midst of the information explosion, borrowers sometimes find it difficult to decide on the right lender.

It is a common phenomenon that people want to live in their own houses. People try to fund their finance the

rough borrowing from their provident fund or their employer or friends and relatives or selling other personal

assets. Thoothukudi area has many colleges and many schools. A number of teachers work in these

institutions. These are a number of sub urban areas like SPIC, saguburam, veerapandiyanpattanam,

tiruchendur which are now developing.

Thoothukudi is rich in resources like cultivable soil. Naturally it is trading center for several agricultural

products. Other business interests also thrive. Even people from other areas come into the area for trading and

other professional interests. The people in this flourishing area find housing facilities inadequate in the

specific areas they desire and with their requirements and choice. Those who have a reasonably steady income

and other backing want to construct houses if easy loans are available from reliable institutions. Social

security and status have also largely contributed to higher demand for housing units of Thoothukudi area

people.

The present study is an attempt to evaluate the housing finance provided by public sector and private sector

banks in Thoothukudi area.

5. Review Of Previous Studies

K.L. Srinivasan (2000)1 in his thesis entitled A project on Housing Finance How SBI can establish

leadership has concluded that simplification of the documentation process, careful and friendly approachsystems and procedures, good customer service and non insistence in collateral securities are the most

important variable in the marketing of housing loan schemes by banks.

DePaul Singh (2001)2 in his study entitled consumer Behavior and Bank Retail products an Analysis Stresses

that the borrowers attitude is an important factor for the improvement of housing loan schemes.

R.R.Krishna and V.S.Krishna Mouthy (1999)3 stress in their article entitled Trend and policy Issues of

Housing finance in India, that simplified procedures and speedy sanction of housing loans will give a boostto the constructing houses.

1. K.L.Srinivasan, A project on Housing FinanceHow SBI can Establish Leadership. SBI, STC paramour.

2. Deepak Singh, Consumer Behavior & Banking Retail products an Analysis, Banking finance, may 2001.3. R.R.Krishna and V.S.Krishna Mouthy, Trend and policy Invest of Housing Finance in India. Southern Economist, April 1 &

15,1999,


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5. To analyze various methods of operating a home loan.

6. To gain knowledge about various home loan products.

7. To know various rates available while providing home loan.

8.

To offer suggestions for the improvement of housing loan schemes in public and private sector banks.

9. To understand current scenario of the India Housing Finance.

10.Make comparative analysis of SBI, CB, IOB (Public sector bank) and HDFC, TMB, Federal Bank

(Private sector banks).

Hypothesis To Be Tested

In order to study the relationship between the personal profile of the respondents and their level of perception

towards the housing loan borrowers of banks, the following hypotheses were framed.

1. The level of perception is independent of the gender of the respondents.

2. The level of perception is independent of the age of the respondents.

3. The level of perception is independent of the educational qualification of the respondents.

4. The level of perception is independent of the occupational status of the respondents.

5.

The level of perception is independent of the monthly family income of the respondents.

6. The level of perception is independent of the marital status of the respondents.

7. The level of perception is independent of the size of the family of the respondents.

8. The level of perception is independent of the nature of family of the respondents.

9.

The level of perception is independent of the place of residence of the respondents.

Geographical Coverage

The present study has been carried out in Thoothukudi area which covers SPIC, Saguburam,

veerapandiyanpattanam, Tiruchendur.

Period Of Study

The researcher herself carried out the field work for this study. It was conducted during the period from June

2013 to July 2013. The researcher have used interview schedule for collecting the data. The Study was

collected on Sundays and holidays. Care was taken to ensure completeness and accuracy in the interviews.

Methodology And Tool

This section describes the methodology which includes the collection of data, the construction of interview

schedule, f-test, t-test, garrets ranking, field work and data collection, frame work of analysis.


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Collection Of Data

This study is compiled with the help of both primary and secondary data. The primary data were collected

directly from the respondents with the help of interview schedule. Secondary data were collected from the

books, journals and websites.

Construction Of Interview Schedule And Pre-Test

Interview schedule in this study has been structured by the researchers themselves. The variables to be studied

have been identified in the preliminary interview schedule with some respondents. The variables thus

identified have been converted in to appropriate questions. A pre-test was conducted. The interview schedule

was pre-test and revised in the light of the experience gained from the pre-test.

Sampling Design

With a view to study, A Study on housing loan borrowers of public and private sector banks in Thoothukudiarea. 60 respondents from public sector banks and 60 respondents from private sector banks. The

respondents were selected by adopting convenient sampling technique.

Scheme Of Analysis

The information collected through the interview schedule was analyzed and tabulated. Opinion regarding the

housing loan product of commercial banks.

F-test is also used to find out the housing loan f-test between the mean and standard deviation. To test therelationship between the level of housing loan borrowers of banks and socio-economic profile of the

borrowers f-test and t-test is used.

Limitations Of The Study

Every researcher suffers from errors and limitations. Some of these are inherent in the research design while

some others become parts of the study during various stages of operation. The present study is subject to the

following constraints and limitations. The following limitations of the study:

The convenience sampling method is followed in selecting the respondents. So that results of the studymay be biased.

As the study was conducted for a short duration of 3 months, it was difficult to study in depth about the

various aspects.

Time, cost and other resources were constraints for a fully comprehensive study.


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Table1:Kind of difficulties of getting home loan from (private sector banks)

Source: primary data

Table 1 shows that kind of difficulties of getting the home loan from private banks, ambiguous documentation

was ranked first, improper response from officials was ranked second, lack of information was ranked third,

lengthy procedures was ranked fourth, poor post purchase attitude was ranked fifth, delay in disbursement

was ranked sixth, delay in sanctioning was ranked seventh, government policy/RBI regulations was ranked

eighth, lack of transparency was ranked nine and the remaining unfair charges was ranked tenth.

Garrentt ranking conversion table for difficulties in getting the housing loan borrowers of

public and private sector banks

Throuch Ranking Techniques

Garrett Ranking = Calculated TableValue valueI Rank =

= 5 = 81

S.

No

Kind of

difficulties in

getting loan

N o. o f r e s p o n d e n t sTotal

score

Mean

score

Ran

kI II III IV V VI VII VIII IX X

1.Lengthy

Procedures

4

(40)

5

(45)

7

(56)

4

(28)

3

(18)

6

(30)

4

(16)

10

(30)

6

(12)

11

(11)3,004 50.07 IV

2.

Government

policy / RBI

regulations

14

(14

0)

1

(9)

7

(56)

3

(21)

7

(42)

5

(25)

5

(20)

5

(15)

8

(16)

5

(5)2,930 48.83 VIII

3.Ambiguous

documentation

9

(90)

9

(81)

6

(48)

4

(28)

3

(18)

6

(30)

5

(20)

7

(21)

8

(16)

3

(3)3,101 51.68 I

4.

Improper

response from

officials

7

(70)

12

(108)

5

(40)

13

(91)

5

(30)

3

(15)

7

(28)

2

(6)

3

(6)

3

(3)3,088 51.47 II

5.Delay in

sanctioning

2

(20)

9

(81)

5

(40)

9

(63)

7

(42)

8

(40)

3

(12)

4

(12)

8

(16)

5

(5)2,957 49.28 VII

6.Delay in

disbursement

4

(40)-

10

(80)

9

(63)

11

(66)

8

(40)

7

(28)

5

(15)

2

(4)

4

(4)2,977 49.62 VI

7. Lack oftransparency

1(10)

4(36)

1(8)

12(84)

14(84)

6(30)

9(36)

4(12)

4(8)

5(5)

2,840 47.33 IX

8.Lack of

information

2

(20)

3

(27)

13

(104)

2

(14)

5

(30)

10

(50)

6

(24)

12

(36)

4

(8)

3

(3)3,042 50.7 III

9.

Poor post

purchase

attitude

2

(20)

14

(126)

3

(24)

2

(14)

1

(6)

4

(20)

11

(44)

6

(180

13

(26)

4

(4)2,992 49.87 V

10 Unfair charges

15

(15

0)

3

(27)

3

(24)

2

(14)

4

(24)

4

(20)

3

(12)

5

(15)

4

(8)

17

(17)2,789 46.48 X


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medium level perception, 5 (8 percent) respondents were in the category of low level perception towards the

housing loan borrowers.

Out of 60 respondents from private banks, 11 (18 percent) respondents were in the category of high level

perception, 34 (57 percent) respondents were in the category of medium level perception, 15 (25 percent)

respondents were in the category of low level perception towards the housing loan borrowers.

8.3 Relationship Between The Gender And Level Of Perception

The Gender wise classification of the respondents on the basis of their level of perception towards housing

loan is shown in Table- 2.1

Table 2.1: Gender and level of perception

Gender

Level of perception Level of perception

Public banks Private banks

High Medium Low Total High Medium Low Total

Male 3 (30) 24 (53) 2 (40) 29 7 (64) 20 (59) 8 (53) 35

Female 7 (70) 21 (47) 3 (60) 31 4 (36) 14 (41) 7 (47) 25

TOTAL 10 45 5 60 11 34 15 60

Source: Primary Data

From the above Table-2.1, it was clear that out of 60 respondents from public banks, 10 respondents have

perceived high level perception in which 3 (30 percent) respondents were male and the remaining 7 (70

percent) respondents were female. 45 respondents have perceived medium level perception in which 24 (53

percent) respondents were male and the remaining 21 (47 percent) respondents were female. 5 respondents

have perceived low level perception in which 2 (40 percent) respondents were male and remaining 3 (60

percent) respondents were female.

Out of 60 respondents from private banks, 11 respondents have perceived high level perception in which 7

(64 percent) respondents were male and the remaining 4 (36 percent) respondents were female. 34

respondents have perceived medium level perception in which 20 (59 percent) respondents were male and the

remaining 14 (41 percent) respondents were female. 15 respondents have perceived low level perception in

which 8 (53 percent) respondents were male and the remaining 8 (53 percent) respondents were female.

Ho - There is no significant relationship between the gender and the level of perception.

The results of ANOVA are given in Table 2.1.1


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Table 2.1.1: Gender of the respondents and their level of perceptionresults of anova

Public Banks

Source of variationSum of

squares

Degrees of

freedom

Mean sum

of squares

Ratio of

FTable value

Between level of

perception2.33 2 1.17 5.29 19

Between gender 0.63 1 0.63 9.83 199.50

Error 12.37 2 6.19 - -

Private Banks

Source of Variation

Sum of

Squares

Degrees of

Freedom

Mean Sum

of Squares

Ratio of

F Table value

Between level of

perception6.33 2 3.17 1 19

Between gender 16.33 1 16.63 5.21 18.513

Error 6.37 2 3.19 - -

It could be seen from the public banks table 2.1.1 that, they obtained F values 5.29 and 9.83 were less than

the table values (19 and 199.50) at 5% level of significance. Hence, the null hypothesis There is no

significant association between gender of the respondents and their level of perception was accepted. As

such, it is concluded that the level of perception of different gender of the respondents do not differ

significantly.

It could be seen from the private banks table 5.3 that, the obtained F values and 5.21 were less than the table

values (19 and 18.513) at 5% level of significance. Hence, the null hypothesis There is no significant

association between gender of the respondents and their level of perception was accepted. As such, it is

concluded that the level of perception of different gender of the respondents do not differ significantly.

8.4 Relationship Between The Age And Level Of Perception

The age wise classification of the respondents on the basis of their level of perception towards housing loan is

shown in Table 1.3


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Table 1.3: Age and level of perception

Age

Level of perception Level of perception

Public banks Private banks

High Medium Low Total High Medium Low Total

Below 25 years 2 (20) 2 (4) 2 (40) 6 3(27) 20 (59) 5(33) 28

26-35 Years 3 (30) 21 (47) 1 (20) 25 3(27) 10 (29) 4(27) 17

36-45 Years 2 (20) 17 (38) 1 (20) 20 3 (27) 2 (6) 3(20) 8

Above 45 Years 3 (30) 5 (11) 1 (20) 9 2 (19) 2 (6) 3(20) 7

TOTAL 10 45 5 60 11 34 15 60

Source: Primary data

From the above Table 1.3, it was clear that out of 60 respondents from public banks, 10 respondents have

high level perception in which 2(20 percent) respondents were in the age group of below 25 years, 3 (30

percent) respondents were in the age group between 26-35 years, 2(20 percent) respondents were in the age

group of in the age group between 36-45 years and the remaining 3(30 percent) respondents were in the age

group of above 45years. 45 respondents have medium level perception in which 2(4 percent) respondents

were in the age group of below 25 years, 21 (47 percent) respondents were in the age group between 26-35

years, 17 (38 percent) respondents were in the age group between 36-45 years and the remaining 5 (11

percent) respondents were in the age group of above 45 years.

5 respondents have low level perception in which 2(40 percent) respondents were in the age group of below

25 years, 1 (20 percent) respondent was in the age group between 26-35 years, 1(20 percent) respondent was

in the age group between 36-45 years and the remaining 1(20 percent) respondent was in the age group

between above 45 years. Out of 60 respondents from private banks, 11 respondents have high level perception

in which 3 (27 percent) respondents were in the age group of below 25 years, 3(27 percent) respondents were

in the age group between 26-35 years, 3(27 percent) respondents were in the age group between 36-45 years

and remaining, 2 (19 percent) respondents were in the age group of above 45 years.

34 respondents have medium level perception in which 20 (59 percent) respondents were in the age group of

below 25 years, 10 (29 percent) respondents were in the age group between 26-35 years, 2 (6 percent)

respondents were in the age group between 36-45 years, and the remaining 2 (6 percent) respondents were in

the age group of above 45 years. 15 respondents have low level perception in which 5(33 percent) respondent

was in the age group of below 25 years, 4(27 percent) respondent was in the age group between 26-35 years,


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It could be seen from the private banks table 5.7 that, the obtained F values 1.91 and 1.49 were less than the

table values (4.4590 and 3.8378) at 5% level of significance. Hence, the null hypothesis There is no

significant association between education qualification and level of perception was accepted. As such, it is

concluded that the level of perception of different educational qualification of the respondents do not differ

significantly.

8.6 Consolidated Results Of F Test

The Consolidated results of F test are given Table 1.5

Table: 1.5 Consolidated results of f test

S.

No

Personal

Factors

Public Banks Private banks

Degrees

of

freedom

Calculated

value

Table

valueAssociation

Degrees

of

freedom

Calculated

value

Table

valueAssociation

1 Gender C = 2

R = 1

5.29

9.83

19

199.50

Not

significant

C = 2

R = 1

1

5.21

19

18.513

Not

significant

2. Age C = 2

R = 3

3.63

1.08

5.1433

8.9406

Not

significant

C = 2

R = 3

1.68

1.82

4.7374

4.7374

Not

significant

3. Educational

qualification

C = 2

R = 4

2.24

1.21

4.4590

3.8378

Not

significant

C = 2

R = 4

1.91

1.49

4.4590

3.8378

Not

significant

The preference of the housing loan borrowers of public and private sector banks towards the level of

perception has not significant association with their personal profiles such as gender, age, educational

qualification,

8.7 Student TDistribution

The following are some of the examples to illustrate the way in which the student distribution is generally

used to test the significance of the various results obtained from small samples.

To Test The Significance Of The Mean Of Random Sample

In determining whether the mean of a sample drawn from a normal population deviates significantly from a

stated value (the hypothetical value of the populations mean), when variance of the population is unknown we

calculated the statistics


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t=s

nx

Where

x = the mean of the sample

= the actual or hypothetical mean of the population

n = the sample size

s = the standard deviation of the sample

= x

(or)

S =

= Where

D = Deviation from the assumed mean

If the calculated value of (t) exceeds t 0.05, we say that the difference between x and is significant at 5%

level, if it exceeds t 0.01 the difference is said to be significant at 1% level. If /t/ < t 0.05, we concluded that

the difference between x and is not significant and hence the sample might have been drawn from the

population with mean = .

Fiducial Limits Of Population Mean

Assuming that the sample is a random sample from a normal population of unknown mean the 95% fiducially

limits of the population

mean () are :

And 99% limits are


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8.8Level Of Satisfaction Towards Home Loan Products

The data presented in Table1.7 shows the level of satisfaction towards home loan products.

Table: 1.7Level of satisfaction towards home loan products public and private sector banks

Public banks significant at 0.05 level. Table value at 0.05 level for degrees of

freedom = (n - 1) = 61 = 5, 2.571

Private bank significant at 0.05 level. Table value at 0.05 level for degree of

freedom = (n - 1) = 61 = 5, 2.571

level of satisfaction towards

home loan products

Public banks

Mean

score

Co

efficient Ttest Rank

Interest rate 22 139.36 633.45 0.75 I

Mode of payment 22 142.24 646.55 0.73 III

Formalities 22 141.45 642.95 0.74 II

Grievances hand link 22 144.19 655.95 0.73 V

Approved by employees 22 143.54 652.45 0.73 IV

Financial Support 22 144.54 657 0.72 VI

Level of satisfaction towards

home loan products

Private banks

Mean

score

Co

efficient Ttest Rank

Interest rate 26 166 638.46 0.76 I

Mode of payment 26 169.28 651.08 0.74 II

Formalities 26 170.26 654.85 0.74 IV

Grievances hand link 26 172.66 664 0.09 V

Approved by employees 26 174.83 672 0.72 VIFinancial Support 26 170 654 0.74 III


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Table 1.7 shows that the public banks coefficient of variation for the variables Interest rate was the least

score (633.45) and it was ranked first followed by Formalities (642.95) Mode of payment (646.55),

Approved by employees (655.41), Grievances hand link (655.41), Financial support (657) .

Table 1.7 shows that the private banks co efficient of variation for the variables Interest rate(638.46)

Mode of payment (651.08), Financial support (654), Grievances hand link (654.85), Approved by

employees ( 672).

9. Findings Of The Study

From the analysis carried out the above said objectives and hypothesis the following are the major findings of

the study.

- From public banks majority of the respondents were female and in the case of private banks

respondents were male.

- 42 percent of the respondents were in the age group between 25-35 years from public banks and

incase of private banks 47 percent of the respondents were in the age group of below 25 years.

- 42 percent of the respondents were graduates from public banks and in the case of private

banks 28 percent of the respondents were post graduates.

- By the application of F-test it was clear that incase of public sector banks level of perception

regarding the housing loan of gender, age, educational qualification, were dependent.

- In case of private banks level of perception regarding the housing loan ,gender, age, educational

qualification were dependent.

10.

Suggestions

- Peoples who are opt home loans for courtesy as the main feature Traditionally bankers and

financiers have been too proud of their position as lenders. So the field staff helps the borrowers

in filling up the application form and which other matters. All the advertisements should be

focused on the place of execution in addition to the courteous behavior evinced by the

employees of the service provider.

- The bank should review the housing loan portfolio at periodical intervals for capturing the new

market to avoid risk and for updating their schemes.

- Branches can obtain suitable banners and print the banners in an attractive way and display

them in the banking hall for the benefit of the customers.


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- Branches can arrange customers meeting to popularize these lend schemes.

- The banks can think of opportunities marketing agents for housing loans as is being done by

financial institutions. At the apex level a lot of publicity can be given on the advantages of bank

loans.

-

Opening a special housing branch and posting field officers for housing finance in intensive

areas with a view to tap the business potential and to serve the clientele on a Continuous basis

may be helpful.

- Attractive incentives are to be given to borrowers.

- All employees should be familiar with the details of the housing loan schemes of their banks.

- Incentive and recognition should be given to banks and employees closing special work in this

field.

- The system of changing a reduced rate of interest based on the credit rating of the borrowers

may be introduced in housing loan schemes.

- All information regarding housing loans should be available on the website of banks in an

interactive mode.

-

Loan application forms should be simplified.

11.Conclusion

The home loan market in India has grown at a rapid and alarming rate of over 40% over the period of the last

four years. And from the reports from one of the industry experts, it is evident that these is very little chance

that these will be any significant decline in growth rates in the future. There fore it becomes important at this

point in time to examine the key factors that have been instrumental in triggering this high growth period.

These are several reasons that can be considered as having attributed to the growth of the home loan market.

On the demand side, the first and the most important factor for the growth has been faster rise in incomes as

compared to property prices, thus making housing more affordable. Most of the housing finance companies in

India have introduced several new home loan products in order to meet the needs of a wide variety of

customers. The various home loan schemes have market. The customer can choose those schemes which he

feels is good for him and have the capacity to repay it on that specified time period.

12.

References

Books

1. Agawam, H.N.1980. A portrait of Nationalized Banks, Delhi: Inter India Publication.


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2. Bandyapaduyay, R.1984. Emerging challenges of Indian Banking and Policy.

3.

Facts, figures and Analyses 1947 -1997. India at 50. Express publications (Madurai) Ltd.

4.

Henry. E. Gazette and Reword Worth. Statistics psychology and Education, vehicles Feiffer and Simons private

ltd., Bombay 1981, P.329.

5.

Nephis 1999. How to Borrow from Banking and Financial Institutions, (10thed.) New Delhi: A Nephi

publications,

6.

Santos Kumar Adhikari, The lending Banker, Calcutta: J.N.Ghash and sons.

7.

Thane lingam, N.1985 Research methodology, Rainbow publications, Coimbatore.

8. Versgney, P.N.1997. Banking Law and Practices. (34 thed) New Delhi: Sultan Chan & Sons.

9.

P.N.VARSHNEY and D.K.MITTAL.2003 Indian Financial system, Chennai

10. D.JOSEPH Anabas, V.K.Boominathan, P.Manoharan and G.Gnanaraj. 2010. Financial Service.

11.

M.Y. Khan, 3rdEdition, financial institutions and markets structure, growth and Innovations.

Reports And Projects

1.

Sinivasan K.L.2000. A Project on Housing Finance, How SBI can Establish Leadership. SBI STC paramour

Chennai.

2. Palanisamy. K.2000. A Project on challenges Ahead. SBISTC Paramour Chennai.

3. Pradeep Kumar Sharma. C.H.Bhabha scholarship project Report 2003. IBA Bulletin, June 2003.

4. Dr.S.Hasanbanu and V.Jeya shree, A comparative study on factors influencing Housing loan Borrowers of public

and private sector Banks in Uthanapalayam Talus. K.K.R.H.Colleges Uthamapalayam. Tamilnadu.

5. M.Vijayakumar and Dr.B.Subburaj, Housing Finance An Analysis of post purchase Behavior of consumers.

Gandhi gram Rural University, Indigo, TamilNadu.

Websites

www.sbi.org.in

www.canara.org.in

www.iob.org.in

www.icici.org.in

www.hdfc.org.in

www.federal.org.in

www.Housing loan borrowers @ yahoo.co.in

www.Housing loan @ google.co.inwww.private sector bank @ google.com.in

www.hdfc.loan borrowers of public and private banks @yahoo.co.in

www.hdfc instant home loans.com

research home loan

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