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Research Methodology

For conducting any research work, it is very essential to have specified

framework, if it is conducted scientifically. It is also necessary for the purpose

of controlling the collection and analysis of data in a manner that aims at

combining reference to the research purpose with economy in procedure and

effort, research methodology involves the following steps;

i) Deciding the approach to be used in the sample design;

ii) Deciding what data will be needed;

iii) Identifying probable source of data;

iv) Deciding how the relevant data should be collected and

v) Computing the result, their interpretation and presentation.

2.1 SCOPE OF THE STUDY

Housing has been one of the important economic activities in India

which serves to providing shelter to needy, raising the quality of life

particularly that of the poor, creating an environment conducive for better

health sanitation, creating additional employment, achieving urban rural and

interpersonal equity in terms of standard of living and above all, generating

additional voluntary savings at all levels. Housing is important to development

aspects. It is not only consumption goods but also a productive investment. It is

relevant not only in terms of improving the quality of life, but also in terms of

capital formation by encouraging household savings. According to the national

statistics of the ‘Central Statistical Organization’ (CSO) that housing contribute

a great part in GDP, it is a good source of capital formation and housing forms

an important share of the total wealth of households in India.

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The housing sector has enormous employment potential as the building

construction activity is highly labour intensive. It generates direct on-site

employment and indirect employment through ancillary activities like brick-

making, wood and plywood industry, road transportation and a host of other

building material industries. The higher labour intensity of the housing sector is

of particular importance to the country like India where unemployment has

assumed serious dimensions.

Despite its paramount importance housing problem has not yet received

adequate attention in economic literature either at home or abroad. Housing has

been neglected field even in developed countries like U.K. housing was left to

private individuals and social workers. In this climate of opinion and academic

aloofness, research in housing did not flourish. But since 1957 this situation has

changed and by 1966 public opinion, legislation and policy began to take shape

pertaining to hosing in U.K.i As has been observed by Charles Abrams ii, a

leading united nations advisor on housing, more research and studies are

needed at present in housing. This is quite true of the Indian housing problem

which has not been studies thoroughly. So comprising the importance of house

and scarcity of houses researcher have decided to know that what are the

reasons that housing finance is not sufficient. For this study researcher choose

the LICHFL because it is the second largest, housing finance providing

company in India.

Today it is nothing less than a housing revolution. There is an

immediate need for financial foreclosure, provision of easy and cheaper

finance, extension of tax incentives and macro economic reforms like

increasing the cash flow to housing. To identify the global scenario and

national theme, this study is an attempt to analyze the function of the housing

financial institutions specially LICHFL in providing effective accessibility and

financing factors to the beneficiaries in Gwalior region. The study confines to a

specific period namely since 1995. It relates to the role of the LICHFL in the

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field of supplying credit and meeting the requirements, thereby helping the

economy, related auxiliary industries.

2.2 REVIEW OF LITERATURE

To have a proper insight into the different aspects of the problem under

study, it will be useful to review the studies made in this direction in the past.

The subject matter of housing finance has not been a subject of interest

for academicians, researchers and the government. Only a less number of

studies have been made on the incidence of housing finance. However not any

study exist on housing finance in Gwalior region. Although an increasing need

was felt for such studies, in view of importance, need of houses and lake of

housing finance.

Reserve Bank of India Bulletiniii, (November, 1961) Vol. XV “Housing

finance institutions in India”- Reports reveals that even after the nationalization

, LIC ‘s investment in Real estates and mortgages forms a very significant part

of its total investment it constitute only 4.3 percent in real estate and 1.5

percent in mortgages which is not much different form the pre-war investment

patterns of 6.8 percent in real estates and 2.9 percent in mortgages whereas in

Australia real estate form about 6.0 percent and mortgages 35.3 percent of the

total assets in 1960. In Canada during the same period, loans in real estate

constituted about 3.4 percent and mortgages 36.2 percent of the total assets. In

the USA the corresponding percentages were 3.1 and 34.9 percent respectively.

Report of the working group on Housing for the Fourth five year plan

(1969-74) 1968, reveals that LIC ‘s investment in Housing is very low, LIC has

given only between 12 to 19 percent of its total investible funds only to

Housing. These percentages are very low when developed countries have an

average of 40 percent.

Mohsuriv (1974) in his study “LIC and Housing” highlighted the defects

of LIC investment pattern. Most of the assets of company were tied to

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Government securities. In 1939, 1945, 1955 and 1960; 62.6, 70.4, 53.0 and

62.9 percent respectively of LIC assets were tied to Government securities

while the corresponding percentages for the real estate was only 6.3, 4.0, 4.7,

and 4.3 respectively. LIC ‘s total investment in 1970 was Rs. 1528.6 crores out

of this 73.6 percent was in the public sector, 9.6 percent in the cooperative

sector and 16.5 percent was in Private sector.

Mathur G. C. (1980)v in this article entitled “Housing the poor”, has

analysed the underlying reasons the housing shortage and the very slow pace of

housing development in India. He has observed that improve the housing

conditions of the poor, it is essential to have a realistic approach in view of

scarce resources and that the most effective strategy is to go for self-help to the

possible extent, construction of houses in stages and provision of essential

service, community facilities, public utilities. The vital significance of low cost

houses for the rural and urban poor is highlighted.

K.V. Varghesevi (1985) in his study “Housing problem in India”,

presented a brief study on housing need, importance, demand, supply and

housing finance under this study they have given biological and economic

importance of house and he examined the current Indian housing situation.

According to Varghese “over-whelming majority of Indian families do not

have minimum housing conform to socially acceptable as well as health

standards.” He summaries that housing has close association with social evils,

crimes and premature death. Good housing can promote physical and

intellectual growth of adults and infants. And housing has great potentiality in

the promotion of economic development. He studied housing situation in India

since 1901 and made brief discussion on growth of housing gap in the country.

He also made a brief study on housing finance in Indian context his

study says that housing finance is inadequate for the task, Government also not

providing adequate funds for housing finance even then a declining trend also

seeing in their finance allocation from plan to plan. He assessed the housing

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finance requirement, to wipe off rural and urban housing backlog as revealed

by 1971 census, a prodigious sum of Rs. 36614 crores would be required. To

meet annual deterioration of our housing stock of 1971, about Rs. 3551.75

crores would be required.

Varghese also examine the role of LIC to providing Housing finance

study says that the financial contribution of LIC to housing sector remains

grossly inadequate as compared with requirements of the country and its total

investible funds. The LIC fund is very expensive and procedures are time

consuming and cumbersome.

Buckley, Robert M (1996)vii in his book ‘Housing finance in developing

countries’ has examined in detail the housing policy in developing countries, at

a time when their systems have started facing unprecedented changes;

particularly because of the wide-spread economic liberalization the world over,

and also in the backdrop of the failure of many centrally planned economies.

He has pointed out the utmost significance of the role played by non-budgetary

Government policies on the provision of housing.

Nair, Tara S. (1999)viii in her commentary “housing: The Missing

concerns” has pointed out that the unfortunate part of India housing scenario is

the financial imprudence of the political leaderships in country. She argues that

the real gainers of the budgetary sops offered by the government are the urban

middle class, middle-income housing projects and housing finance institutions;

not the poor who are really need housing finance.

Harvard University (HMF Report) (2000)ix has reviewed HMF

initiatives of various countries in Asia, Latin America and Africa. The report

has highlighted remarkable growth of HMF initiatives worldwide in the last

two decades. It gives background information for those involved in (or

planning to enter into) HMF activities.

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Manoj (2004)x in his paper “Dynamics of Housing Finance in India” has

systematically traced the growth and development of the housing finance in

India. The significance of housing to the economy, prospects of the industry,

the risk factors and challenges to housing finance (along with suitable remedial

strategies) are explained. It has been suggested that models like ‘Grameen

bank’ of Bangladesh should pick in India also for faster and inclusive housing

development.

D. Regis Arunodayarn and N. Thangavelxi (2007) in his study “A study

of the Housing Finance Industry with special ‘reference of the city Chennai” in

this study they examines the developments in the housing finance in India in

the early 21st and the magnitude of the problem of housing in the country and

the implication of housing policies and evaluate the performance of selected

housing finance institutions and banks during the period 1991-2005. They find

that there is a association between the educational qualification and knowledge

of housing policies, there is a no significant difference exist between financial

institutions in respect of loan sanctioned to beneficiaries. Study says that

Government had relaxed certain regulations and allowing several private

players in the field, which has created a competitive environment. The

liberalization and the active entry of commercial banks into housing finance

market, deregulation of interest rate etc. also increased the competition in the

housing finance market. Study reveals that biggest housing finance company

has maintained a steady consistent growth but the medium size companies like

LICHFL and ICICI Home Finance have reversed growth in loan sanction and

disbursement due to increasing competitiveness.

National Urban Housing and Habitat policy 2007 (NUHHP)xii, is the

official policy on urban housing and habitat of the Ministry of Housing and

Urban Poverty Alleviation, Government of India. It gives a detailed account of

the status of urban housing in India, problem of housing shortage etc. NUHHP

seeks to promote sustainable habitant in the country and delineates specific

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areas of action and an action plan towards achieving ‘Housing for All-its

ultimate goal

IFMR (Research Report on Housing Microfinance (HMF) in India

(2007)xiii discussed the potential of HMF in providing housing finance to the

poor and also the risk factors involved in it. Using a demand assessment made

at an Micro Finance Institutions (MFI) named ASP (based in Andhra Pradesh,

i K.V. Varghese, ‘Housing Problem In India’, Eurekha Publications, New

Delhi, 1994.

ii Charles Abrams, ‘Housing Policy 1937 to1967’, MIT Press Cambridge, Mass,

1969.

iii ‘Reserve Bank of India Bulletin’, November, 1961, vol. XV, No. 11 pp. 1808-

1820.

iv Mpjsir, ‘LIC and Housing’ , Vora and Co. Publishers, Pvt. Ltd. Bombay-2

v Mathur, G.C., ‘Housing the Poor’, Yojana, vol. XXIII, No24, Jan.01, 1980

vi K.V. Varghese, ‘Housing Problem In India’, Eurekha Publications, New

Delhi, 1994

vii Buckley, Robert M, ‘Housing Finance in Developing Countries’, Macmillan

Press, London, 1996.

viii Nair, Tara S., “Housing : The Missing Concerns”, commentary, Economic and

Political Weeklay, Vol. XXXIV, No. 28, July 10, 1999, P. 1871.

ix “Housing Microfinance Initiatives-Synthesis and Regional Summary: Asia,

Latin America and Sub-Saharan Africa with Selected Case Studies, Centre for

Urban Development Studies”, Harvard University, May 2000.

x P. K. Manoj, “Dynamics of Housing Finance in India”, Bank quest, Vol. 75,

No.3, Sept. 2004.

xi D. Regis Arunodayam and n. Thangavel, “A study of the Housing Finance

Industry with special reference to the city of Chennai”, Satyabama Deemed

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India), the paper discusses as to as to how an MFI can design and HMF product

as per the client`s socio-economic status.

Manoj (2009)xiv in his book ‘Emerging Technologies and Financing

Models for Affordable Housing in India’ gives a detailed picture of the

emerging technologies for affordable housing in India and elsewhere in the

world, and also the financing models for low cost housing. Technologies like

gypsum load bearing walls and financing models like Housing Microfinance

(HMF) are discussed.

Srinivas S. P. (2006)xv in his study revealed that disbursement of home

loan increased at increasing growth during the growth rate of disbursement in

2000-01 compared to the earlier year was 13.7% which increased up to 76% in

2002-03. The reason behind the growth in housing loans are, (i) Easy

availability of housing loans (ii) Growing population (iii) Nuclear family

system (iv) Urbanization of Indian economy(v) Shortage of Dwelling units (vi)

tax benefits.

Singh Fulbag et.al. (2008)xvi in their study of “Housing Finance in India-

A case study of LIC Housing Finance Limited” stated that the main objective

University, Chennai-2007

xii National Urban Housing and Habitat Policy 2007 (NUHHP), Ministry of

Housing and Urban Poverty alleviation, Govt. of India, New Delhi.

xiii “Housing Microfinance: Designing a product for the Rural Poor”, Working

Paper Series No. 19, IFMR(Institute Of Finance Management Research), Centre

for Microfinance, Chennai, Nov. 2007.

xiv P. K. Manoj, “Learning from Cross-country Experiences in Housing Finance:

a Microfinance Approach”, Journal of Global Economy, Vol. 4, No. 3, July-

Sept. 2008.

xv Srinivas S.P. (2006), “The housing value relevance of Governmental

Accounting Information”, Journal of Accounting and public policy, Vol. 17,

Iss.2.P91-111.

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of the bank is to promote and establish the housing financial institutions in the

country as well as to provide refinance facilities to housing finance

corporations and scheduled commercial banks. Moreover, for the salaried

section, the tax rebates on housing loans have been introduced. The paper is

based on the case study of LIC Housing Finance Ltd., which analyzes region-

wise disbursements of individual house loans their portfolio amounts and

defaults for the last ten year i. e., from 1995-96 to 2004-05 by working out

relevant ratios in term of percentage and the compounded annual growth rates.

2.3 OBJECTIVES OF THE STUDY

The main aim of research is to find out the truth which is hidden and which

has not been discovered as yet. Though each research study has its own specific

purposes, for this study researcher has drawn the following objectives:

1) To assess the person’s housing finance requirements for construction /

reconstruction / purchase / maintenance of house;

2) To identify the problems faced by the persons, while getting loans;

3) To assess the impact of housing credit on the economy of borrowers;

4) To assess the housing credit requirement of the Gwalior region and to

see if the financial agencies have been able to meet the credit needs;

5) To examine the role of financial institutions, especially the LICHFL

providing housing finance from 1995 upto the current period; and

6) To make broad suggestions in improving the working and efficiency of

LICHFL and to fill in the credit gap so as to provide a strong financial

structure for development.

2.4 RESEARCH HYPOTHESIS

xvi Singh Fulbag et. Al. (2008), “Housing Finance in India-A Case Study of LIC

Housing Finance Ltd.”, Journal of Urban Economics, Vol. 63, Iss. 1, Jan 2008.

P 229-252.

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Hypothesis may be defined as a proposition or a set of propositions set

forth as an explanation for the occurrence of some specified group of

phenomenon either asserted merely as a provisional conjecture to guide some

investigations or accepted as highly probable in the light of established factsxvii.

Usually, a hypothesis is a common statement or it is a well accepted fact.

The hypothesis may also be created by the researcher himself, in the present

case. The hypothesis has not been borrowed, but it has been developed by the

researcher. To highlight and explaining the problem, the following points of

enquiry are accounted as hypothesis:

1) Fast growing population is the cause of housing problem;

2) That there is a dearth of housing finance in Gwalior region;

3) LICHFL is the leading financial institute in the field of housing finance;

4) The schemes and working process of LICHFL is easy and simple in

comparison to the other housing financial institutions;

5) LICHFL’s performance in recovery of loans is satisfactory; and

6) That the institutional financing has added to the prosperity of the

persons and has brought about an improvement in their socio-economic

status.

2.5 RESEARCH PROCESS

Research process consists of series of action or steps necessary to carry

out effective research and the desired sequence of these steps.

At times, the first step determines the nature of the last step to be undertaken. If

subsequent procedures have not been taken into account in the early stages,

serious difficulties may arise which may even prevent the completion of the

study. One should remember that the various steps involved in a research

xvii Kothari C.R., ‘Research Methodology Methods and Techniques’, Wiley

Eastern Limited, 1986, p,254.

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process are not mutually exclusive; not they are separate and distinct. They do

not necessarily follow each other in any specific order and the researcher has to

constantly anticipating at each step in the research process the requirements of

the subsequent steps. However, the following order concerning various steps

provides a useful procedural guideline regarding the research process:

1. Formulating the research problem.

2. Preparing the research design.

3. Collecting the data.

4. Editing of data

5. Analysis of data.

6. Generalization and interpretation.

7. Preparation of the report or presentation of the results, i.e. formal write

up of conclusions reached.

1. Formulating the research problem

The first step of research process is formulation of research problem. The

definition of problem is composed of three aspects.xviii The specification of

the units of analysis for the study;

a) The identification of the particular units within the scope of the study;

b) The specification of the information sought concerning those units.

In the proposed study, all of the above aspects have been tried to delve,

so that the purpose of the research is met.

2. Preparing the research design

The second step in research is the research design- the blue print for the

research. The basic issues addressed in research design are-

xviii IGNOU – introduction to research methodology, 1996, p-16.

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a) should the research environment be internally disturbed by the

researcher in specified ways, an experimental design- or should the

environment be studied as it exists without such disturbances?

b) How many observations should be made on each unit in the study?

c) Should a single sample be chosen from the total population or should a

series of sample be chosen from various subgroups of the population?

d) Should a probability or non-probability sampling procedure be adopted

for the study?

The study focuses on housing loan holders Gwalior region, one of the

central cities in the country. It has experienced a high rate of population growth

estimate at an annual rate of 3.5%.

The study was conducted in Gwalior region using both primary and

secondary data. LIC Housing Finance Limited was selected. Primary data were

collected from a sample of 300 home loan borrowers through personal

interview method and questionnaire was administered. Investigation started

with pilot survey of 30 households drawn randomly from the list of

beneficiaries of housing loans. At this stage, it was discovered that the

respondents were hesitant to provide information on household finances. The

questionnaire had to be revised being made simpler and questions on income

made more suitable. The questionnaires were administered directly to

respondents by me. A total of 300 such questionnaires were completed out of

400, giving a response rate of about 75%.

Information and data were also collected by interviewing managers of

respective institutions. Secondary data pertaining to housing stock housing

shortage, investment on housing etc. whereas the data pertaining to housing

finance companies were collected from the annual reports as well as office

records of respective housing finance companies.

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The collected data were processed and analysed using simple statistical

tools like ratios, percentages, averages, Karl Pearson’s correlation coefficient

and Chi-square test were used to know the relation between housing loan by

way of Lien of Credit (LOC) and income of borrowers, Floor area Vs size of

the family, assistance of loan Vs income group and Growth in total income and

growth in expenditure of the LICHFL.

3. Collecting the data.

After these preliminaries are given due consideration, comes the task of

collection of data. Collection of data means the methods that are to be

employed for getting the required information from the unit under

investigation. The method of collection data depends upon the nature, object

and scope of the study, on the one hand and availability of money and time, on

the other hand. Statistical data may be either primary or secondary. Primary

data are collected by the investigator himself for the purpose of enquiry.

Secondary data are collected by other agencies for their own use, but such data

may also be used by others. Primary data, once collected and publish becomes

secondary data for other investigators. Primary data are collected for the

enquiry itself, hence such data are most suitable for the purpose. Before

collecting the data it is necessary to determine the sampling frame.

Sampling frame

The sampling frame plays an important role in any major study. In the

present study, there are 2 different types of sampling frames. Utmost care has

been taken in constructing a non-overlapping database and upto date sampling

frame. Purposive sampling technique had been conducted for the selection of

financial institutions whereas random sampling technique had been adopted in

the selection of sample borrowers. The Gwalior region is divided into eight

districts out of these four districts selected and a list of 400 borrowers has

obtained from the LICHFL.

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The present study seeks both types of data for its analytical structure.

The following methods have been adopted for the collection of primary and

secondary data:

Primary data:

This involved in preparation of two different sets of interview schedule.

The collection of data was made in person. Pre testing of questionnaire was

initially done to find out the reliability of the questionnaire. In the light of

experiences gained from pre-testing the questionnaire was modified. The

primary data was collected from 300 beneficiaries of the LICHFL, relating to

personal demographics, loan areas, loan amount, repayment of the loan,

effective functioning of LICHFL etc

Primary data have been collected with following methods:

i) Direct personal observation: This is relatively inexpensive and

yields accurate results, but some time observation suffers from the

disadvantages that it does not probe into the underlying reasons for

the behaviour deserved.

ii) Direct personal investigation: under this method the investigator

interviews personally everyone who is in a position to supply the

information he requires. The investigator establishes personal contact

with the informants and conducts on- the spot enquiry. This method

of data collection is suitable when the field of enquiry is limited and

when maximum degree of accuracy is desired. If the investigator

collects data without bias, the collected facts will be most accurate

and reliable.

iii) Through questionnaires: under this method a questionnaire is

prepared. The questionnaire contains a set of question on the

problem under investigation. These questionnaires are filled by the

informants.

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Secondary data:

Data that had already been collected made available in public reports,

private records and other sources are called secondary data. In other words,

secondary data are those which have already been collected and analysed by

some other agencies. The main advantages of the secondary data are that it is

cheaper than the primary data and it takes less time to obtain etc. secondary

data can be published as well as unpublished also.

The investigator should proceed cautiously in the use of secondary data.

In order to get reliable, data from secondary sources, the following points

should be enquired; as under

i) The integrity and experience of the collecting organization : If

the data have been collected by and agency to prove a particular fact

or phenomenon, then the bias will be there and much reliance cannot

be put on such statistics. If the investigating agency has efficient,

experienced, honest and neutral and has sufficient resources for

collecting data, then such data can be relied upon and used.

ii) Object and scope: the scope and object of the enquiry for which

data were originally collected should be ascertained. If the object and

scope is the same, then the use of secondary data may be very useful.

The object of the enquiry very much affects the reliability of data,

according to prof. H. Secristxix, “ The data may be good or bad,

satisfactory or unsatisfactory in the light of the purpose which

controlled their collection, their grouping and combination and the

analysis which has been made of them”.

iii) Types of enquiry: Census or sample. The investigation which has

resulted in the data was a census study or a sample one. If it was a

xix Kothari C.R., ‘Research Methodology Methods and Techniques’, Wiley

Eastern Limited, 1986.

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sample study, whether the size of the sample was adequate and how

the items of the sample were selected! The user of secondary data

must enquire and satisfy him with these issues.

iv) Methods of collection: What method was adopted in the collection

of data and how far that method was appropriate and reliable must be

examined. The questionnaire use in the investigation may also be

examined. It should be found out whether adequate arrangements

were made for the organization and supervision of the data.

v) Time of condition of collection facts: Before making use of the

available data, it should be ascertained, to which period they refer

and under what conditions they were collected. If the circumstances

in which data were collected are materially different than those in

which they are being used, their utility is reduced.

vi) Definition of unit: it is necessary to examine what were definitions

of units in the investigation, and whether those definitions are safe as

being used in the present investigation eg. In the census a literate

person is reckoned as one who can read and write, but if an

investigation is to be carried out about educated unemployment, the

definition used in the census will be inappropriate.

vii) Comparison : One way is to compare the data with some related

data and see whether the results are consistent and reasonable. In

case of inconsistency data should be obtained from some other

reliable source.

viii) Test checking : The user of the secondary data must be test

checking and see whether totals, rates coefficients have be calculated

correctly. If this is not done, then the technical error of collection,

tabulation and analysis of primary data will creep into the other

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investigations based on them. If after sufficiently examining the

secondary data and satisfying one self, such data should be used.

In this research work primary data has been collected from beneficiaries of

LICHFL through questionnaires and they are categorized in four groups.

Following definitions have been used to categories the beneficiaries;

(a) EWS- Economically weaker sections of the society and lower

income group belong to the lowest income category in the state. In

present study, EWS falls between the Monthly Income 0-3300xx.

People who fall under this category are not able to venture house

construction on their own.

(b) LIG- Word LIG stands for Lower Income Group. It is the class

of people whom Monthly Income between 3301-7300. This category

is able to meet their daily needs but to construct their house they

must need loan assistance.

(c) MIG- Middle Income Group is the people who belong the

Monthly Income is between 7301-14500. This category is able to

meet their daily needs and also the rental cost of shelter on month to

month basis.

(d) HIG- High Income Group is the class that comes under the

richest section of the society. In the present study is those whose

Monthly Income is 14501 and above. This class includes, land

developers, business men, Professionals and administrators etc.

In the present study the Secondary data has been collected from district

urban development agency Gwalior, district statistical office Gwalior, Madhya

Pradesh district census hand book, various reports, manuals, journals, materials

xx “Report of the Technical Group (11th Five Year Plan 2007-12) on Estimation

of Urban Housing shortage”, Himadri Mayank, Nanavaty Mitali,and ‘Affordable

Housing in India’, Jones Lang LaSalle, Ahmedabad

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published by international organizations, central and state governments. Annual

reports published by LICHFL, HUDCO, HDFC, GICHFL, CANFIN, SBI

home, DHFL, CENT bank home, SUNDARAM house etc. were also widely

used. The housing policy of the centre and State Governments, several 5 year

plan documents, National Housing Bank reports and valuable literature form

different libraries an the World Wide Web was extensively used in this study.

4. Collecting the data:

After the data have been collected through observation or enquiry the

data is edited for presentation and analysis. This is process of refining the raw

material for proper utilization. The process of editing consists; consistency,

uniformity, completeness and accuracy. Editing of data requires a high degree

of skill and application of scientific methods, because ‘ the process of editing is

by no means an unimportant and routine operation, rather it requires marked

ability, scrupulous care and a rigid adherence to scientific objectivity” (Crum,

Patton and Tebbutt).

Editing of data is necessary not only for primary data, but also for

secondary data. Even when all the precautions of using secondary data have

been taken, it is necessary for one to exercise one’s common sense in

scrutinizing them before subjecting them to analysis. The degree to which lack

of accuracy of approximations or presence of error is to be tolerated in editing

the data is of great significance.

5. Analysis of data:

After editing the data they are analysed through different statistical

measures to bring out their salient characteristics. Data analysis can be

conveniently classified as under :-

i) Univariate analysis: Deals with a single characteristic of interest.

ii) Bivariate analysis: Deals with two characteristic of interest.

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iii) Multivariate analysis: Deals with more than two characteristic of

interest.

Statistical tools applied for data analysis:- The data collected were analysed

with appropriate statistical tools and techniques such as simple ratios,

Percentage analysis, chi-square test, Usage of statistical test for testing the

various hypotheses and for drawing valid inferences and construction of

statistical charts and diagrams.

Empirical analysis:- The basic objectives of this is to highlight the sampled

data in a comprehensive manner. A detailed statistical analysis of the data is

attempted in subsequent sections. A sample enquiry was adopted for the

collection of basic statistical data, relating to the problem under consideration.

Two different approaches have been adopted for collection of data viz.

Collection of primary data from the beneficiaries who have availed

housing loan form LICHFL.

Collection of secondary data from financial institutions which are

lending finance for the purchase / construction/renovation/Extension/

reconstruction/ repair of a house / flat to the individual.

In case of primary data selection of random samples, had been taken from

the sampling frame of individuals.

6. Interpretation of data:

After collection and analysis of data fir and reasonable conclusion are

drawn from them. The utility of all labour and money spent in the investigation

will depend only on correct interpretation. According to W. H. Harperxxi,

“Always remember that a conclusion can never be better, than the original

figures on which it is based. Unless the original figures are collected properly

nay subsequent analysis will be at best, a waste of time and possibly even

xxi Dr. Shukla and sahai, ‘Statistical analysis’, Sahity bhavan publication , New

Delhi

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disastrous, since it may mislead with serious consequences”. Moreover, the

statistician while interpreting data should view his problem objectively. W.J.

Reichmanxxii observes “Interpretation depends as much upon the interpreter as

upon the data interpreted and he must be even on this guard against unreality,

prejudice and illogically”.

George Simpson and Fritz Kafka lay down four fundamental principles

of interpreter. They are:

i) Sound Interpretation involves willingness on the part of the interpreter

to see what is in the data.

ii) Sound interpretation of statistics requires that the interpreter should

know something more than the mere figure.

iii) The rules of logical thinking are indispensable to sound interpreter of

statistical data.

iv) Clear, incisive language is part of sound interpretation.

Therefore the task of interpretation is to be scientifically performed and

it must be done above all prejudices. Most of the mistakes that are made in

interpreting data arise from false generalization, which has been avoided in the

present work.

7. Preparation of the report:

The findings of the enquiry must be communicated to others. Therefore,

after interpretation, a report is prepared. This is the last stage of an enquiry. It

makes known to readers, what has been produced by the investigation. In other

words, what are the results and inferences of the investigation? The research

task is not completed until the report has been written. The most brilliant

hypothesis, the most carefully designed and conducted study, the most striking

findings, is of little importance unless they are communicated to others. Many

social scientists seem to regard the writing of a report as an unpleasant chore

xxii Dr. Shukla and sahai, ‘Statistical analysis’, Sahity bhavan publication , New

Delhi

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tacked on the end of the research process, but not really an inherent part of it.

To be sure this stage requires a set of skills some what different from those

called for but earlier stages of research. Nevertheless, communication or results

so that they enter the general store of knowledge is an essential part of the

investigator’s responsibilities, which should receive the same careful attention

that earlier stages do. In the report, the aim and the purpose of the work should

be clearly stated. Records of how the data are collected and the method of

collection are given in brief in the report. The report should open with a short

narration of the problem and summarization of the results of entire study. A

well organised statistical report presents from the introduction to final

conclusion in such a flow that the related facts, naturally draw inferences and

estimates, important issue etc. are logically integrated. The whole report should

appear to be a coherent whole. The report should be well-prepared documents

because the preparation and the presentation of a statistical report manifest the

qualities possessed by the statistician, technical skill in handling statistical

methods, breath and depth of knowledge of the subject matter, throughness,

and patience, accuracy, imagination and the ability to adopt general statistical

principles to the specific situation dealt within the report, and finally,

impartiality and willingness to communicate the truth regardless of personal

feelings and belief.

Limitations of the study:

There is a vast portion of knowledge in which I have simply deeper. I

can not claim the same is the final verdict of the work. Researcher has made all

the efforts to collect the data from primary as well as secondary sources and

interpret the result but the study has suffered on account of various constrains.

These constrains are the limitation of study which are described below.

Limitation in primary data collection

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The primary data collection was a major basis on which the study rests. The

researcher has made surveys of housing loan holders of Gwalior region. The

survey work has suffered on account of the following main problems.

a) Scattered area- the researcher has proposed to contact housing loan holders

in the Gwalior region the person residing in Gwalior region it was difficult

to contact them. Because some times they did not meet at house.

b) Problem of response- the people under the study were not realizing the

importance of the research work. It was realized by me that they were not

giving appropriate and proper information about their economic condition

i.e. income, expenditure, loan status etc. and naturally their response in

providing the requisite information was inadequate. Most of them had not

returned my questionnaire even then after many reminders. So, I have

decided to met them personally and find out the requisite information.

Some of them also remarked that what solution to their problem can be

provided by this research work. Only after a great persuasion, they rendered

the information to the researcher.

Limitation in secondary data collection

Many of data regarding urban population, yearly new constructed

houses, interest rates, construction cost, demand of finance etc. has not been

published by any agency. Hence the major limitation of the study was the non

availability of the data of all the years.

Although there were so many limitations and constrains of the study, the

researcher tried her best to overcome these limitations and he has tried to see

that these limitation do not effect the quality of the research work and will feel

deeply rewarded if he could impress the reader.

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