Master of Business Administration: "Consumer Perception Towards Home Loan"

A
Research Report
Subject Code: 576221(76)
On
“Consumer perception towards Home Loan”
Submitted for partial fulfillment of requirement for the
award of degree
Of
Master of Business Administration
Of
CHHATTISGARH SWAMI VIVEKANAND TECHNICAL
UNIVERSTY
BHILAI (C.G.)
Session 2012-14
Supervision By: Submitted by:

Prof. Gazala Y. Ashraf Sujeet Pandit
Assistant Professor Roll
No.5057612094
Faculty of Management MBA II Semester
Section – A
FACULTY OF MANAGEMENT
DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

(Disha Education Society)
Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,
Raipur (C.G.) 492007
DECLARATION
I the undersigned solemnly declare that the report of the project work entitled
“Consumer perception towards Home Loan”, is based my own work carried out
during the course of my study under the supervision of Prof. Gazala Y. Ashraf.
I assert that the statements made and conclusions drawn are an outcome of the
project work. I further declare that to the best of my knowledge and belief that the
project report does not contain any part of any work which has been submitted for the
award of any other degree/diploma/certificate in this University or any other University.
__________________
Sujeet Pandit
Roll No.: 5057612094
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CERTIFICATE BY GUIDE
This to certify that the report of the project submitted is the outcome of the project
work entitled “Consumer perception towards Home Loan” carried out by Sujeet Pandit
bearing Roll No.:5057612094 & Enrollment No.:AK6995 carried by under my guidance and
supervision for the award of Degree in Master of Business Administration of Chhattisgarh
Swami Vivekananda Technical University, Bhilai (C.G), India.
To the best of the my knowledge the report
i) Embodies the work of the candidate him/herself,
ii) Has duly been completed,
iii) Fulfils the requirement of the ordinance relating to the MBA degree of the
University and
iv) Is up to the desired standard for the purpose of which is submitted.
_______________________
(Signature of the Guide)
Prof. Gazala Y. Ashraf
Asst. Prof.
Faculty of Management
DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY
Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,
Raipur (C.G.) 492007
The research report as mentioned above is hereby being recommended and forwarded for
examination and evaluation.
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CERTIFICATE BY THE EXAMINERS
This is to certify that the project entitled

“Consumer perception towards Home Loan”
Submitted by
Sujeet Pandit Roll No.:5057612094 Enrollments No.:AK6995.
Has been examined by the undersigned as apart of the examination for the award of Master of
Business Administration degree of Chhattisgarh Swami Vivekananda Technical University,
Bhilai (C.G.).
________________ __________________
________________ __________________
Name & Signature of Name & Signature of
Internal Examiner External Examiner
Date: Date:
Forwarded by
Dean
Faculty of Management
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ACKNOWLEDGEMENT
The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely fortunate to have got this all along the completion of my
project work. Whatever I have done is only due to such guidance and assistance and I would
not forget to thank them.
I respect and thank Prof. Gazala Y. Ashraf, for giving me an opportunity to do the project
work in Consumer perception towards home loan and providing us all support and guidance
which made me complete the project on time. I am extremely grateful to her for providing
such a nice support and guidance though she had busy schedule.
I would not forget to remember Prof. Suresh Pattanayak, Prof Rupesh Kr. Tiwari and all
faculty members for their unlisted encouragement and more over for their timely support and
guidance till the completion of our project work.
I heartily thank our internal project guide, Dr.R.S.Mohan, Dean , Department of

Management, for his guidance and suggestions during this project work.
I am extremely thankful to all those persons who have positively helped me and customers
who respond my questionnaire, around whom the whole project cycle revolves.
Name: Sujeet Pandit

Roll.No.: 5057612094
MBA 2nd Sem
2nd Semester
Section-A
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PREFACE
This report presents the research, findings and recommendations resulting from the
project, “Consumer perception towards Home Loan”, supported by Prof. Gazala Y.
Ashraf and authored by the Dean. The objective was to compile and synthesize information
on the status of Consumer perception. In so doing, it lays the foundation for the development
of bank resources management decision support system that will facilitate scientifically
sound decision making. The involvement in this project reflects its long-term interest in
Consumer perception towards Home Loan management activities consistent with its
mandate to “promote the orderly, integrated and comprehensive development, use and
conservation of the loan. This report has benefitted from the significant input and
collaboration of numerous partners that comprised a Project Management Team (PMT). The
findings and recommendations of this report address data and information gaps and needs,
and provide valuable information for guiding the next steps in the process of developing a
decision support system. This report, and the project’s many associated components,
provides a wealth of information about the bank resources and associated policies.
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I. DECLARATION
II. CERTIFICATE BY GUIDE
III. CERTIFICATE BYTHE EXAMINERS
IV. ACKNOWLEDGEMENT
V. PREFACE
INDEX
Sr. No. TITLE Page No.

Chapter 1 1.1 Introduction 8
1.2 Objective of the Study 14
1.3 Scope & Limitations of the Study 15
1.4 Review of Literature 16
Chapter 2 Product Profile 18
Chapter 3 Research Methodology 21
Chapter 4 Analysis and Interpretation 41
Chapter 5 Finding and Suggestion 57
Chapter 6 Conclusion 58
Bibliography
Appendix
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1.1 Introduction
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Over the last few decades the role of loan sector has undergone a paradigm shift. It is
widely recognized as an important aspect of the source of loan for the people and considered
it as a short and long-term investment.
After zeroing down on my research area, I have collected information through only
primary. I had a constant discussion with consumer.
The objective of this report is to study “Customer Perception and Attitude towards home
loan”. For this survey was conducted through structured Questionnaire.
In today’s competitive business world every customer is significant for the lending
home loan. The customer expectations are very high so it should be kept in mind and offer
them best possible service.
The report deal with the conceptual background of home loan and over view of the
banks, the next part deals with research design of the study that is problem identification,
objectives and how the research was carried out. The outcome of the study shows that the
level of customer awareness towards Home Loan is good with the benefits and service what
they are giving and most of the people wants to go for investments.
Banks can start some good promotional activities to build its brand and to make
recognition by all the peoples in the market .The effective marketing channel with the
personal selling is an essential factor in influencing banks growth.
INDUSTRY PROFILE
The importance of financial institutions in the modern economy cannot be neglected. They
occupy a very important place in the field of commerce and industry of any country. They
are so important that modern business is certainly impossible without them and number
country can achieve commercial and industrial progress in the absence of sound financial
system.
These financial sectors have different products at different rates. The growing competition
between the financial institutions had made each of them to delight their customer rather
than satisfying them. The emergence of new generation private financial institutions has
made the entire financial sector tougher and much more competitive. They provide various
services to the customer to overcome the competition. Some of the major players in the
sectors are:
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1. CitiFinancial
2. ICICI bank
3. HDFC bank
4. PNB
5. SBI and many more…
Financial institutions and their services offered:
ICICI bank:
ICICI Bank offers wide variety of Loans Products to suit the customer requirements.
Coupled with convenience of networks branches/ATMs and facility of E-channels like
Internet and Mobile Banking.
Home loan:
Attractive interest rates
Door-step service from enquiry stage till final disbursement
Can transfer the customer existing high-interest rate loan
Free personal accidental insurance
Special 100percentage funding for select properties
HDFC Bank:
Home loan:
Anew home brings with it new hopes, joys and emotions. At HDFC, we have shared new
hopes, joys and emotions with over 26 Lakh customers. Every customer has a specific and
unique concern. Having earned an experience of 27 years in home loans, our home loan
product is customized to provide the customer solutions for the customer’s unique concern.
Features:
• Maximum loan 85percentage of the cost of the property (including the cost of the land) and
based on the repayment capacity of the customer.
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• Maximum Term 20 years subject to the customer’s 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 number be co-owners.
Adjustable Rate Home Loan under Adjustable Rate is linked to HDFC's Retail Prime
Lending Rate (RPLR). The rate on the customer’s loan will be revised every three months
from the date of first disbursement, if there is a change in RPLR, the interest rate on the
customer’s loan may change. However, the EMI on the home loan disbursed will not
change*. If the interest rate increases, the interest component in an EMI will increase and
the principal component will reduce resulting in an extension of term of the loan, and vice
versa when the interest rate decreases.
• Fixed Rate without money market conditions- Rate of interest will not change. with money
market conditions- Rate of interest will not change due to money market conditions for two
years from the date of first disbursement of the loan.
• Purchase of:-
O Flat, row house, bungalow from developers
O Existing freehold properties
O Properties in an existing or proposed co-operative housing society or apartment owner's

association
O First Power of Attorney purchases in Delhi for DDA flats allotted before 1992.
• Self Construction
Features
• Purpose
O External repairs
O Tiling and flooring
O Internal and external painting
O Plumbing and electrical work
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O Waterproofing and roofing
O Grills and aluminum windows
O Waterproofing on terrace
O Construction of underground/overhead water tank
O Paving of compound wall (with stone/tile/etc.)
O Existing Customer 100percentage of the cost of improvement
O New Customer 5percentage of the cost of improvement
• Adjustable Rate Home Loan
Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The
rate on the customer’s loan will be revised every three months from the date of first
disbursement, if there is a change in RPLR, the interest rate on the customer’s loan may
change. However, the EMI on the home loan disbursed will not change*. If the interest rate
the interest component in an EMI will increase and the principal component will reduce
resulting in an extension of term of the loan, and vice versa when the interest rate decreases.
Fixed Rate
With money market conditions- Rate of interest will not change due to money market
conditions for two years from the date of first disbursement of the loan*.
State Bank of India (SBI):

? HOUSING LOAN:
Home is where the heart is! At SBI, we understand this better than most – the toil and sweat
that goes into building/ buying a house and the subsequent pride and joy of owning one.
This is why our Housing loan schemes are designed to make it simple for the customer to
make a choice at least as far as financing goes!
Unique features:
• Number cap on maximum loan amount for purchase/ construction of house/ flat
• Option to club income of the customer’s spouse and children to compute eligible loan
amount.
• Provision to club expected rent accruals from property proposed to compute eligible loan
amount
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• Provision to finance cost of furnishing and consumer durables as part of project cost
• Repayment permitted up to 70 years of age
• Optional Group Insurance from SBI Life at confessional premium (Upfront premium
financed as part of project cost)
• Interest applied on daily diminishing balance basis
• Plus’ schemes which offer attractive packages with confessionals interest rates, margins
and processing fee to Govt. Employees, Teachers, Scientists, Employees in Oil sector,
Journalists (in select cities) etc.
• Special scheme to grant loans to finance Earnest Money Deposits to be paid to
Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/
flat
• Option for E-banking
Need for the study:
Assets are insured; because they are likely to be destroyed through accidental occurrences
such possible occurrences are called perils. Fire floods breakdowns, lighting, and earth
quakes etc. If such perils can cause damage to the asset the asset is exposed to that risk.
The risk only means that there is a possibility of loss or damage. The damage may or may
not happen. Insurance is done against the contingency that it may happen. There has to be an
uncertainty about the risk. Insurance is relevant only if there are uncertain. In the case of a
person who is terminally ill the time of death is not uncertain though not exactly known.
Insurance does not protect the asset. It does not prevent its loss due to the peril .The peril can
sometimes be avoided, through better safety and damage control management. Insurance
only tries to reduce the impact of the risk on the owner of the asset and those who depend on
that asset.
It only compensates the loose and that too, not fully. Only economic consequences can be
insured. If the loss is not financial insurance may not be possible.
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1.2 OBJECTIVES
PRIMARY OBJECTIVE:
Analyzing the customer’s PERCEPTION on home loans offered by banks.
SECONDARY OBJECTIVES:
1. To find out various types of loan availed by customers in market.

2. To identify various branches of banks from where customer have availed
loans.
3. To evaluate the turnaround time for customer in availing their loans from
banks.
4. To identify whether any procedure problem were faced by the customer in
availing the loan.
5. To find out the preferred mode of repayment of customer with regarding their
loans availed from banks.
6. To find out the most attractive features that attracted the clients to avail loan
from banks.
7. To evaluate the customer satisfaction regarding various services offered at
banks.
HYPOTHESIS:
Quite often a research hypothesis is a predictive statement, capable of being tested by scientific
methods that relates and independent variable to some dependent variable.
The following hypotheses were set in order to achieve the objectives.

 There is no significant relationship between the purpose of investment in insurance
and the annual income.
 There is no significant relationship between the risk taken while investing and the
amount invested.
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 There is no significant relationship between age of the respondent and the risk taken
by them while investing.
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1.3 SCOPE AND LIMITATIONS OF THE STUDY SCOPE OF THE STUDY
The scope of the study is to analyze the satisfaction level of home loan customers in and
around India. The study gathers information about rating the effectiveness of bank services,
rating and ranking the different features and services offered by the bank.
Primary data was collected from the existing loan customers and also non existing
customers; secondary data was collected from book manuals, magazines and websites. The
study has come out with valuable suggestions on basis of concrete facts, which help to frame
its plan and strategies to increase satisfaction level of the loan customers.
LIMITATIONS OF THE STUDY
1. The study is limited to all over India.

2. Because of the limited time, research is conducted with only 80 customers.
3. The data collected from the customer are qualitative in nature i.e., views,
perception, satisfaction, opinion etc., may change from time to time.
4. The data collected are primary in nature. Hence there is chance for a biased of
misleading respondent from the customer.
5. On few occasions customer were reluctant to give information, because they were
busy.
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1.4 REVIEW OF LITERATURE
The researcher has to refer few books and magazines to refer

few books and review for obtaining and understanding. The
relationship in customers satisfaction and quality of services. It was
also useful for knowing the customer satisfaction versus quality of
service offered by the concern.
The ICFAI journal of Monetary Economics, Numberv’2004 it is

studied that “greenwood and Jovanovich (1990) in their study analyzed
the role that financial institutions play in collecting and analyzing
information and use this information for utilizing funds by investing in
such projects that are high-risk while at the same time yield highest
return.
The ICFAI Journal of Service Marketing Dec’2004 “It is important to

note that whatever financial products are put in the market, it can only
be successful if customer has a need for it. Thus the need to study
customer behavior becomes paramount. This flows naturally from the
marketing concept that emphasis the idea of looking at the product
from the consumer’s point of view,”
In Indian Journal of Marketing, May’04 Marketing of Banking

Services in the Globalize Scenario – Emerging Challenges- By Dr. V.
GOPALAKRISHNAN.
Banking services largely depends upon customer demands and their

perceived performance. In urban and metropolitan sectors customers
are more knowledge and demand more facilities than offered. They are
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looking for services that are cheaper, faster and qualitatively better”
The STATISTICAL METHODS, By S. P. GUPTHA. S.P gives a very

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

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

on the various categories of information that should be collected for
carrying out the preliminary investigation for the various research
studies. The author McGauran L.L. gives importance to six categories
of information that re to be used for preliminary investigation namely
a. the product
b. the company, industry and competition
c. the market
d. the channel of distribution
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e. the sales
f. the sales promotion policies.
Further this book also stresses on the pilot survey that should be
conducted before starting the original survey. Hence taking all this into
account, a preliminary
questionnaire was
drafted and it was tested
among five customers.
The flows found in the
questionnaire were later
rectified after consulting
few experts too in this
field and finally the
original questionnaire
was drafted.
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2. PRODUCT PROFILE
The different services provided by Banks:
1. Home loan
Home Purchase Finance
Fund the customer’s dream home. Get the maximum loan up to a

95percentage of Agreement Value + 100percentage of Stamp Duty.
Loan up to Rs. 1 Crore*.
Home Loan Refinance with top-up
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Free the customer’s money! Have the customer’s existing Home Loan
bought over and enjoy extra cash up to 80percentage of market value
of the customer’s home. Loan up to Rs. 75 Lakh*.
Home Improvement Finance
If the customer is looking to renovate the customer’s home, get up to

95percentage of the cost estimate (subject to 50percentage of market
value). Get a loan up to Rs. 12 Lakhs*.
Home Extension Finance
Thinking of expanding the customer’s home? Get up to 95percentage of

the cost estimate
(Subject to 60 percentage of market value). Get a loan up to Rs. 30

Lakhs*.
The features of Home Loans:
The advantages of dealing with banks, one of the largest financial

conglomerates of the world are plenty:
Highest recognition of income in the industry
Specially designed for businessmen
Flexibility in procedural requirements
Easy income and property documentation criteria
Flexible property norms
Approved plans are not mandatory
Funding for Builder Flats
Hassle-free and fast service
2. Home return:
The customer’s home is more than just four walls and a roof that
provides shelter for the customer and the customer’s family. It is also a
valuable asset, which the customer can put to use while continuing to
occupy it. The banks Home Returns Plan offers the customer the
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opportunity of getting a loan against the customer’s house/residential
property for practically any purpose. With our friendly, flexible and
fast service, it is simply the best way to free the wealth locked up in the
customer’s property.
"Home Returns now brings the customer Mortgage Loans for

Education. This zero hassle loan helps the customer fund the
customer’s children's higher studies. Want to know how the customer’s
children can follow their dreams”
Unmatched benefits of Banks Home Returns:
The advantage of dealing with banks one of the largest financial

conglomerates of the world, is plenty?
Amount of loan from Rs. 2 Lakh to Rs. 1 Crore*.
Loans against rented, vacant and self-occupied residential properties.

Loan up to 60 percentage of the market value of the customer’s
residential property. Term of loan up to a period of 15 years.
Flexible income criteria. Special schemes for businessmen.
Easy income and property documentation criteria.
Repayment on Equated Monthly Installments (EMIs) basis.
Loans can also be availed on property belonging to the customer’s
family members.
3. Mortgages loan for education:
If money is what is standing between the customer and a world-class

education, worry not! Now banks help the customer to fund the
customer’s education by giving the customer a loan against the
customer’s home. So if the customer wants to pursue the customer’s
studies in India or overseas, the customer can do so now without any
financial worries.
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3. RESEARCH METHODOLOGY
RESEARCH DESIGN
The formidable problem that follows the task of defining the research
problem is the preparation of the design of the research project,
popularly known as “Research Design”. Research design is a plan,
structure and strategy of investigation conceived to obtain answers to
research questions and to control variance.
A research design can be defined as “Arrangement of condition for

collection and analysis of data in the manner that aims to combine
relevance to the research purpose with economy in procedure.” It
consists of the blue print for the collection measurement and analysis
of data. The research used here is descriptive research
DESCRIPTIVE RESEARCH
The researcher is interested in knowing the proportion of people in a

given population who has behaved in a particular manner, making
projections of certain thing and determining the relationship between
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two or more variables in some areas. As the set up has been well
structured and is a rigid one, which could not be changed by giving
sufficient thought in frail-ling question, deciding type of data to be
collected and procedure that has been used gives the, proof of using
description research. In descriptive research also there has been use of
cross sectional studies just because the researcher has taken only a
sample of elements from the given population. In the cross sectional
study the survey research has been selected, as a detailed study has to
be obtained from a sample of large population.
DATA COLLECTION METHOD
The data that is used in study in collected by two methods.
1. Primary data
2. Secondary data
Primary Data
The primary data does not exist already in records and publications.
The researcher has to gather primary data a fresh for a specific survey.
The primary data can be gathered by way of observation method where
the research mix with the people concerned with the use of particular
product and not important clauses by observing the respondents. The
second method of collection of primary data is by way of
experimentation method where some variables are allowed to vary
under a controlled environment and its cause and effect relationship is
studied.
The third method of collection of data is by way of conducting a

survey. This method is used for collection of primary data. The primary
data was collected from customers in India city. For this research
study, data was collected from various account holders of the
CitiFinancial. Data collection was carried out using personal interview
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method guided by questionnaire as follows:
. Open-ended questions
. Closed ended questions
. Dichotomous questions
. Multiple-choice questions
. Ranking questions
. Rating questions
SECONDARY DATA
It is needed for conducting this research work collected from the
various business magazines, bank brouchers, statistical and
management book, market research books etc. which are presented in
the literature various in details
SAMPLING DESIGN
The precision and accuracy of survey results are affected by the
manner in which the sample has been chosen. The first thing for a
sample plan is definition of the population to be investigated. Defining
the population is often one of the most difficult things to do in
sampling. Although ideal conditions might indicate threat the census
would be preferable, such ideal conditions rarely exist in the real
world. A census is not feasible practically, therefore sample is used.
Two of major advantages of using a sample rather than a census are

speed and timeliness. A survey based on sample takes much less time
to compete than based on census. In this particular research study
sample survey is done. Sample design is the most important heart of
sample planning. Sample design includes type of sample to use and the
appropriate sampling unit.
Measurement and Scaling
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Likert scale has been used in this study to acquire the degree of
agreement and disagreement from the respondent about a particular
category of decision that he makes while seeking loan. This scale has
been calibrated on the range of 1 to 5 where 1 indicates strong
agreeability and 5 denotes strong disagreeability with a certain category
of decision.
Entire questionnaire of 17 questions uses the same scale to acquire

data. The advantage of using Likert scale in this study is that it is very
easy to construct and administer. Another important advantage is the
convenience for respondents to understand the procedure to respond to
the questions. Likert scale has a drawback that each question is formed
by 1 or 2 sentences. But in this study the customers won’t mind
listening these 1 - 2 sentences to rate a category of decision which
expresses their agreeability or disagreeability for an issue while seeking
loan.
Quantitative Methods
A Telephonic Interview was selected as a tool to collect data from the

respondents due to the time and cost constraints. The questionnaire is
structured into 17 simple questions. The respondent is asked to rate his
agreeability and disagreeability on the scale of 1 to 5. The
questionnaire is attached as an annexure to this report. The questions
are framed using minimum financial jargon that customers should be
comfortable with.
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Analysis and Result
1. The decision based on, in processing an application of Home
Loan, received the following responses.
Frequency:
HL EZY 2 UNDRSTND
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 10 12.5 12.5 12.5
2.00 24 30.0 30.0 42.5
3.00 30 37.5 37.5 80.0
4.00 11 13.8 13.8 93.8
5.00 5 6.3 6.3 100.0
Total 80 100.0 100.0
From the 80 respondents nearly 12.5% responses generated shown

strong agreeability, 30.0% responses are generated agree,37.5%
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responses generated natural, 13.8% responses generated disagree and
remaining 6.3% indicate that the customers strongly disagree that
application of Home Loan easy to understand.
2. The decision based on, mortgage process, received the

following responses.
Frequency:
MORTG PRCS
Cumulative
Valid .00 1 1.3 1.3 1.3
1.00 20 25.0 25.0 26.3
2.00 29 36.3 36.3 62.5
3.00 19 23.8 23.8 86.3
4.00 8 10.0 10.0 96.3
5.00 3 3.8 3.8 100.0
Total 80 100.0 100.0
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From the 80 respondents nearly 25% responses generated shown strong
agreeability, 36.3% responses are generated agree, 23.8% responses
generated natural, 10% responses generated disagree and remaining
3.8% indicate that the customers strongly disagree that mortgage
process explain thoroughly.
3. The decision based on, EMI fixed by bank, received the
Frequency:
EMI FIX
Cumulative
Valid 1.00 40 50.0 50.0 50.0
2.00 25 31.3 31.3 81.3
3.00 4 5.0 5.0 86.3
4.00 6 7.5 7.5 93.8
5.00 5 6.3 6.3 100.0
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Total 80 100.0 100.0
From the 80 respondents nearly 50% responses generated shown strong

agreeability, 31.3% responses are generated agree, 5.0% responses
generated natural, 7.5% responses generated disagree and remaining
6.3% indicate that the customers strongly disagree that EMI fixed by
bank is correct.
4. The decision based on, accessibility service received,
Frequency:
SRVC RCVD
Cumulative
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Valid 1.00 21 26.3 26.3 26.3
2.00 20 25.0 25.0 51.3
3.00 23 28.8 28.8 80.0
4.00 9 11.3 11.3 91.3
5.00 7 8.8 8.8 100.0
Total 80 100.0 100.0

strong agreeability, 25.0% responses are generated agree, 28.3%
remaining 8.8% indicate that the customers strongly disagree that they
service received.
5. The decision based on, Interest rates charged by Bank,

received the following responses
Frequency:
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INTRST CHRG BY BNK
Cumulative
Valid 1.00 23 28.8 28.8 28.8
2.00 25 31.3 31.3 60.0
3.00 13 16.3 16.3 76.3
4.00 16 20.0 20.0 96.3
5.00 3 3.8 3.8 100.0
Total 80 100.0 100.0

interest charged by bank is correct.
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6. The decision based on, favor in Home Loan, received the
Frequency:
HL FVOR
Cumulative
Valid 1.00 27 33.8 33.8 33.8
2.00 33 41.3 41.3 75.0
3.00 10 12.5 12.5 87.5
4.00 7 8.8 8.8 96.3
5.00 3 3.8 3.8 100.0
Total 80 100.0 100.0

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remaining 3.8% indicate that the customers strongly disagree that how
much people are in favor of home loan.
7. The decision based on, Documentation Procedure of Bank,
received the following responses.
Frequency:
DOC PRCZER
Cumulative
Valid 1.00 14 17.5 17.5 17.5
2.00 30 37.5 37.5 55.0
3.00 22 27.5 27.5 82.5
4.00 8 10.0 10.0 92.5
5.00 6 7.5 7.5 100.0
Total 80 100.0 100.0
-3-
document procedure is correct.
8. The decision based on, Processing Fees of Bank, received the
Frequency:
PRCZING FEES
Cumulative
Valid 1.00 6 7.5 7.5 7.5
2.00 16 20.0 20.0 27.5
3.00 26 32.5 32.5 60.0
4.00 25 31.3 31.3 91.3
5.00 7 8.8 8.8 100.0
Total 80 100.0 100.0
-3-
processing fees is true.
9. The decision based on, Sanctioning Procedure, received the

Frequency:
SENCTION PRCZER
Cumulative
Valid 1.00 6 7.5 7.5 7.5
2.00 10 12.5 12.5 20.0
-3-
3.00 23 28.8 28.8 48.8
4.00 32 40.0 40.0 88.8
5.00 9 11.3 11.3 100.0
Total 80 100.0 100.0

document procedure is correct.
10. The decision based on, Sanctioning Time, received the
Frequency:
SENCTION TIME
-3-
Cumulative
Valid 1.00 3 3.8 3.8 3.8
2.00 12 15.0 15.0 18.8
3.00 18 22.5 22.5 41.3
4.00 23 28.8 28.8 70.0
5.00 24 30.0 30.0 100.0
Total 80 100.0 100.0

remaining 30.0% indicate that the customers strongly disagree about
sanctioning time.
11. The decision based on, Fore Closure Charges, received the
-3-
Frequency:
4 CLZR CHRGD
Cumulative
Valid 1.00 7 8.8 8.8 8.8
2.00 6 7.5 7.5 16.3
3.00 25 31.3 31.3 47.5
4.00 15 18.8 18.8 66.3
5.00 27 33.8 33.8 100.0
Total 80 100.0 100.0

remaining 33.8% indicate that the customers strongly disagree about
Fore Closure Charges.
-3-
12. The decision based on, sanctioning is going online, received
the following responses.
Frequency:
ONLINE
Cumulative
Valid .00 1 1.3 1.3 1.3
1.00 34 42.5 42.5 43.8
2.00 9 11.3 11.3 55.0
3.00 18 22.5 22.5 77.5
4.00 5 6.3 6.3 83.8
5.00 13 16.3 16.3 100.0
Total 80 100.0 100.0

-3-
home loan is going online.
13. The decision based on, interest charged by bank should be
different on the basis of income level, received the following
responses.
Frequency:
INTRST AS INCME LVL
Cumulative
Valid 1.00 15 18.8 18.8 18.8
2.00 8 10.0 10.0 28.8
3.00 21 26.3 26.3 55.0
4.00 13 16.3 16.3 71.3
5.00 23 28.8 28.8 100.0
Total 80 100.0 100.0
-3-
should interest charged by bank should be different on the basis of
income level.
14. The decision based on, Seize of asset facility by bank is the
right step, in case of nonpayment of EMI, received the
Frequency:
SIZ WHL NNP EMI
Cumulative
Valid .00 1 1.3 1.3 1.3
1.00 17 21.3 21.3 22.5
2.00 21 26.3 26.3 48.8
3.00 14 17.5 17.5 66.3
4.00 11 13.8 13.8 80.0
5.00 16 20.0 20.0 100.0
Total 80 100.0 100.0
-3-
Seize of asset facility by bank is the right step, in case of nonpayment
of EMI is true.
15. The decision based on, facility provides by the bank,
received the following responses.
Frequency:
FCLTY PRVD BANK
Cumulative
Valid .00 4 5.0 5.0 5.0
1.00 8 10.0 10.0 15.0
2.00 12 15.0 15.0 30.0
3.00 18 22.5 22.5 52.5
4.00 31 38.8 38.8 91.3
-3-
5.00 7 8.8 8.8 100.0
Total 80 100.0 100.0

remaining 8.8% indicate that the customers strongly disagree that they
satisfy with facility provide by the bank.
16. The decision based on, prefer public sectors bank for home
Frequency:
PUBLIC SECTOR
Cumulative
Valid 1.00 35 43.8 43.8 43.8
2.00 19 23.8 23.8 67.5
-3-
3.00 5 6.3 6.3 73.8
4.00 14 17.5 17.5 91.3
5.00 7 8.8 8.8 100.0
Total 80 100.0 100.0

remaining 8.8% indicate that the customers strongly disagree that how
much people like to prefer public sectors bank for home Loan.
17. The decision based on, prefer private sectors bank for home
Frequency:
PRIVATE SECTOR
-3-
Cumulative
Valid 1.00 26 32.5 32.5 32.5
2.00 20 25.0 25.0 57.5
3.00 7 8.8 8.8 66.3
4.00 12 15.0 15.0 81.3
5.00 15 18.8 18.8 100.0
Total 80 100.0 100.0

remaining 18.8% indicate that the customers strongly disagree how
much people like to prefer public sectors bank for home Loan.
-3-
-3-
4. INTERPRETATION AND DATA ANALYSIS
1. FACTOR ANALYSIS
SPSS commands for factor Analysis
This page shows an example of a factor analysis with footnotes
explaining the output. The data used in this example were collected
by Professor James Sidanius, who has generously shared them with
us. You can download the data set here.
Overview: The "what" and "why" of factor analysis.
-3-
Factor analysis is a method of data reduction. It does this by
seeking underlying unobservable (latent) variables that are reflected
in the observed variables (manifest variables). There are many
different methods that can be used to conduct a factor analysis
(such as principal axis factor, maximum likelihood, generalized
least squares, unweighted least squares), There are also many
different types of rotations that can be done after the initial
extraction of factors, including orthogonal rotations, such as
varimax and equimax, which impose the restriction that the factors
cannot be correlated, and oblique rotations, such as promax, which
allow the factors to be correlated with one another. You also need
to determine the number of factors that you want to extract. Given
the number of factor analytic techniques and options, it is not
surprising that different analysts could reach very different results
analyzing the same data set. However, all analysts are looking for
simple structure. Simple structure is pattern of results such that
each variable loads highly onto one and only one factor.
The determination of the number of factors to extract should be
guided by theory, but also informed by running the analysis
extracting different numbers of factors and seeing which number of
factors yields the most interpretable results.
Descriptive Statistics
Mean Std. Deviation Analysis N

HL EZY 2 UNDRSTND 2.7125 1.05775 80
MORTG PRCS 2.2750 1.10207 80
EMI FIX 1.8875 1.19061 80
SRVC RCVD 2.5125 1.24264 80
INTRST CHRG BY BNK 2.3875 1.20646 80
HL FVOR 2.0750 1.07650 80
DOC PRCZER 2.5250 1.12481 80
PRCZING FEES 3.1375 1.07614 80
SENCTION PRCZER 3.3500 1.08032 80
SENCTION TIME 3.6625 1.16862 80
4 CLZR CHRGD 3.6125 1.26785 80
ONLINE 2.3875 1.51360 80
INTRST AS INCME LVL 3.2625 1.45605 80
SIZ WHL NNP EMI 2.8125 1.46774 80
FCLTY PRVD BANK 3.0625 1.32497 80
PUBLIC SECTOR 2.2375 1.39841 80
PRIVATE SECTOR 2.6250 1.52925 80
The table above is output because we used the univariate option on

the /print subcommand. Please note that the only way to see how
many cases were actually used in the factor analysis is to include
-3-
the univariate option on the /print subcommand. The number of cases
used in the analysis will be less than the total number of cases in the
data file if there are missing values on any of the variables used in the
factor analysis, because, by default, SPSS does a list wise deletion of
incomplete cases. If the factor analysis is being conducted on the
correlations (as opposed to the co variances), it is not much of a
concern that the variables have very different means and/or standard
deviations (which is often the case when variables are measured on
different scales).
a. Mean - These are the means of the variables used in the factor
analysis.
b. Std. Deviation - These are the standard deviations of the variables

used in the factor analysis.
c. Analysis N - This is the number of cases used in the factor analysis.
The table above is included in the output because we used

the dot option on the /print subcommand. All we want to see in this
table is that the determinant is not 0. If the determinant is 0, then there
will be computational problems with the factor analysis, and SPSS may
issue a warning message or be unable to complete the factor analysis.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling

Adequacy. .625
Bartlett's Test of Approx. Chi-Square 591.314

Sphericity df 136
Sig. .000
a. Kaiser-Meyer-Olkin Measure of Sampling Adequacy - This

measure varies between 0 and 1, and values closer to 1 are better. A
value of .6 is a suggested minimum.
b. Bartlett's Test of Sphericity - This tests the null hypothesis that the
correlation matrix is an identity matrix. An identity matrix is matrix in
-3-
which all of the diagonal elements are 1 and all off diagonal elements
are 0. You want to reject this null hypothesis.
Taken together, these tests provide a minimum standard which should

be passed before a factor analysis (or a principal components analysis)
should be conducted.
Communalities
Initial Extraction
HL EZY 2 UNDRSTND 1.000 .675
MORTG PRCS 1.000 .798
EMI FIX 1.000 .702
SRVC RCVD 1.000 .778
INTRST CHRG BY BNK 1.000 .773
HL FVOR 1.000 .800
DOC PRCZER 1.000 .851
PRCZING FEES 1.000 .638
SENCTION PRCZER 1.000 .761
SENCTION TIME 1.000 .839
4 CLZR CHRGD 1.000 .683
ONLINE 1.000 .713
INTRST AS INCME LVL 1.000 .609
SIZ WHL NNP EMI 1.000 .815
FCLTY PRVD BANK 1.000 .604
PUBLIC SECTOR 1.000 .783
PRIVATE SECTOR 1.000 .714
Extraction Method: Principal Component Analysis.
a. Communalities - This is the proportion of each variable's variance

that can be explained by the factors (e.g., the underlying latent
continua). It is also noted as h2 and can be defined as the sum of
squared factor loadings for the variables.
b. Initial - With principal factor axis factoring, the initial values on the
diagonal of the correlation matrix are determined by the squared
multiple correlation of the variable with the other variables.
c. Extraction - The values in this column indicate the proportion of

each variable's variance that can be explained by the retained factors.
-3-
Variables with high values are well represented in the common factor
space, while variables with low values are not well represented. (In
this example, we don't have any particularly low values.) They are the
reproduced variances from the factors that you have extracted. You
can find these values on the diagonal of the reproduced correlation
matrix.
Total Variance Explained
Compo Extraction Sums of Squared Rotation Sums of Squared

nent Initial Eigenvalues Loadings Loadings
% of
Varianc Cumulativ % of Cumulative % of Cumulative
Total e e% Total Variance % Total Variance %
1 4.376 25.738 25.738 4.376 25.738 25.738 2.631 15.475 15.475
2 2.765 16.268 42.006 2.765 16.268 42.006 2.463 14.486 29.961
3 1.930 11.355 53.361 1.930 11.355 53.361 2.392 14.071 44.032
4 1.260 7.409 60.770 1.260 7.409 60.770 2.029 11.933 55.964
5 1.112 6.541 67.311 1.112 6.541 67.311 1.683 9.898 65.862
6 1.094 6.433 73.744 1.094 6.433 73.744 1.340 7.882 73.744
7 .736 4.329 78.073
8 .689 4.055 82.129
9 .634 3.728 85.857
10 .519 3.054 88.911
11 .466 2.743 91.654
12 .407 2.396 94.050
13 .290 1.705 95.755
14 .246 1.446 97.201
15 .215 1.266 98.468
16 .152 .895 99.363
17 .108 .637 100.000
a. Factor - The initial number of factors is the same as the number of

variables used in the factor analysis. However, not all 17 factors will
be retained. In this example, only the first three factors will be retained
(as we requested).
-3-
b. Initial Eigenvalues - Eigenvalues are the variances of the factors.
Because we conducted our factor analysis on the correlation matrix, the
variables are standardized, which means that the each variable has a
variance of 1, and the total variance is equal to the number of variables
used in the analysis, in this case, 17.
c. Total - This column contains the eigenvalues. The first factor will
always account for the most variance (and hence have the highest
eigenvalue), and the next factor will account for as much of the left
over variance as it can, and so on. Hence, each successive factor will
account for less and less variance.
d. % of Variance - This column contains the percent of total variance

accounted for by each factor.
e. Cumulative % - This column contains the cumulative percentage of

variance accounted for by the current and all preceding factors. For
example, the 6 row shows a value of 73.74. This means that the first 6
factors together account for 73.74% of the total variance.
f. Extraction Sums of Squared Loadings - The number of rows in

this panel of the table correspond to the number of factors retained. In
this example, we requested that three factors be retained, so there are
three rows, one for each retained factor. The values in this panel of the
table are calculated in the same way as the values in the left panel,
except that here the values are based on the common variance. The
values in this panel of the table will always be lower than the values in
the left panel of the table, because they are based on the common
variance, which is always smaller than the total variance.
g. Rotation Sums of Squared Loadings - The values in this panel of

the table represent the distribution of the variance after the varimax
rotation. Varimax rotation tries to maximize the variance of each of the
-3-
factors, so the total amount of variance accounted for is redistributed
over the three extracted factors.
Total Variance Explained
Rotation Sums of Squared Loadings

Factor Total % of Variance Cumulative %
1 2.321 13.651 13.651
2 2.216 13.034 26.686
3 1.788 10.520 37.206
4 1.707 10.044 47.249
5 1.366 8.037 55.286
6 .944 5.555 60.841
Extraction Method: Principal Axis Factoring.
Reproduced Correlations
INTRST
HL EZY 2 MORTG SRVC CHRG BY HL
UNDRSTND PRCS EMI FIX RCVD BNK FVOR
Reproduced Correlation HL EZY 2 UNDRSTND .675(b) .322 .448 -.002 .319 .150
MORTG PRCS .322 .798(b) .667 .329 .456 .074
EMI FIX .448 .667 .702(b) .416 .608 .303
SRVC RCVD -.002 .329 .416 .778(b) .543 .578
INTRST CHRG BY BNK .319 .456 .608 .543 .773(b) .427
HL FVOR .150 .074 .303 .578 .427 .800(b)
DOC PRCZER .176 .670 .535 .505 .357 .079
-3-
PRCZING FEES .167 .316 .304 .420 .338 .057
SENCTION PRCZER .167 .217 .172 .299 .201 .006
SENCTION TIME .111 -.035 .017 .276 .185 .039
4 CLZR CHRGD -.122 -.091 -.100 .266 .085 .121
ONLINE .208 -.060 -.090 -.281 -.297 .094
INTRST AS INCME LVL -.342 -.312 -.389 -.087 -.402 .097
SIZ WHL NNP EMI .114 .115 -.007 -.078 -.291 .148
FCLTY PRVD BANK -.384 -.295 -.415 -.022 -.493 -.044
PUBLIC SECTOR .265 -.166 .046 .212 .093 .219
PRIVATE SECTOR .259 .318 .372 .034 .475 .124
Residual(a) HL EZY 2 UNDRSTND .040 -.082 .096 -.062 .014
MORTG PRCS .040 -.103 -.045 -.051 .069
EMI FIX -.082 -.103 .000 .031 -.109
SRVC RCVD .096 -.045 .000 -.044 -.134
INTRST CHRG BY BNK -.062 -.051 .031 -.044 -.079
HL FVOR .014 .069 -.109 -.134 -.079
DOC PRCZER -.058 -.062 -.018 -.030 -.014 .014
PRCZING FEES .035 -.017 -.133 -.028 .030 .054
SENCTION PRCZER -.034 -.044 -.003 -.001 -.073 .058
SENCTION TIME -.016 .000 .019 -.016 .044 .002
4 CLZR CHRGD .019 .096 .079 -.010 -.027 -.035
ONLINE -.130 -.073 .037 .073 .068 -.089
INTRST AS INCME LVL .080 .014 -.002 -.002 -.025 -.045
SIZ WHL NNP EMI -.084 -.005 -.006 -.057 .054 .006
FCLTY PRVD BANK .099 -.038 .019 .025 .050 -.004
PUBLIC SECTOR -.166 .033 .038 -.028 -.013 -.062
PRIVATE SECTOR -.068 -.038 -.062 .009 -.079 .016
Contd……..
DOC
PRCZE PRCZIN SENCTIO SENCTIO 4 CLZR
R G FEES N PRCZER N TIME CHRGD ONLINE
Reproduced Correlation HL EZY 2 UNDRSTND
0.176 0.167 0.167 0.111 -0.122 0.208
MORTG PRCS
0.67 0.316 0.217 -0.035 -0.091 -0.06
EMI FIX
0.535 0.304 0.172 0.017 -0.1 -0.09
SRVC RCVD
0.505 0.42 0.299 0.276 0.266 -0.281
INTRST CHRG BY BNK
0.357 0.338 0.201 0.185 0.085 -0.297
HL FVOR
0.079 0.057 0.006 0.039 0.121 0.094
DOC PRCZER
.851(b) 0.579 0.469 0.277 0.111 -0.231
PRCZING FEES
0.579 .638(b) 0.622 0.6 0.366 -0.277
-3-
SENCTION PRCZER
0.469 0.622 .761(b) 0.741 0.573 -0.044
SENCTION TIME
0.277 0.6 0.741 .839(b) 0.635 -0.132
4 CLZR CHRGD
0.111 0.366 0.573 0.635 .683(b) 0.032
ONLINE
-0.231 -0.277 -0.044 -0.132 0.032 .713(b)
INTRST AS INCME LVL
-0.282 -0.261 -0.061 -0.062 0.243 0.4
SIZ WHL NNP EMI
0.052 -0.125 0.096 -0.072 0.123 0.686
FCLTY PRVD BANK
-0.029 -0.032 0.09 0.094 0.226 0.186
PUBLIC SECTOR
0.154 0.334 0.242 0.384 0.036 -0.177
PRIVATE SECTOR
-0.071 -0.087 -0.076 -0.13 -0.03 0.043
Residual(a) HL EZY 2 UNDRSTND
-0.058 0.035 -0.034 -0.016 0.019 -0.13
MORTG PRCS
-0.062 -0.017 -0.044 0 0.096 -0.073
EMI FIX
-0.018 -0.133 -0.003 0.019 0.079 0.037
SRVC RCVD
-0.03 -0.028 -0.001 -0.016 -0.01 0.073
INTRST CHRG BY BNK
-0.014 0.03 -0.073 0.044 -0.027 0.068
HL FVOR
0.014 0.054 0.058 0.002 -0.035 -0.089
DOC PRCZER
-0.064 0.034 0.014 -0.038 0.058
PRCZING FEES
-0.064 -0.076 -0.08 -0.066 0.003
SENCTION PRCZER
0.034 -0.076 -0.045 -0.14 -0.033
SENCTION TIME
0.014 -0.08 -0.045 -0.084 -0.029
4 CLZR CHRGD
-0.038 -0.066 -0.14 -0.084 0.034
ONLINE
0.058 0.003 -0.033 -0.029 0.034
INTRST AS INCME LVL
0.042 0.019 0.05 -0.005 -0.091 -0.119
SIZ WHL NNP EMI
-0.046 0.045 -0.03 0.042 -0.034 -0.106
FCLTY PRVD BANK
-0.036 -0.027 -0.017 0.026 -0.03 0.022
PUBLIC SECTOR
0.055 -0.079 0.021 -0.032 0.038 0.031
PRIVATE SECTOR
0.084 -0.005 0.087 -0.013 -0.124 -0.001
Contd……
INTRST AS FCLTY
INCME SIZ WHL PRVD PUBLIC PRIVATE
LVL NNP EMI BANK SECTOR SECTOR
Reproduced Correlation HL EZY 2 UNDRSTND
-0.342 0.114 -0.384 0.265 0.259
MORTG PRCS
-0.312 0.115 -0.295 -0.166 0.318
EMI FIX
-0.389 -0.007 -0.415 0.046 0.372
SRVC RCVD
-0.087 -0.078 -0.022 0.212 0.034
INTRST CHRG BY BNK
-0.402 -0.291 -0.493 0.093 0.475
HL FVOR
0.097 0.148 -0.044 0.219 0.124
DOC PRCZER
-0.282 0.052 -0.029 0.154 -0.071
PRCZING FEES
-0.261 -0.125 -0.032 0.334 -0.087
-3-
SENCTION PRCZER
-0.061 0.096 0.09 0.242 -0.076
SENCTION TIME
-0.062 -0.072 0.094 0.384 -0.13
4 CLZR CHRGD
0.243 0.123 0.226 0.036 -0.03
ONLINE
0.4 0.686 0.186 -0.177 0.043
INTRST AS INCME LVL
.609(b) 0.47 0.471 -0.259 -0.177
SIZ WHL NNP EMI
0.47 .815(b) 0.346 -0.193 -0.086
FCLTY PRVD BANK
0.471 0.346 .604(b) 0.028 -0.517
PUBLIC SECTOR
-0.259 -0.193 0.028 .783(b) -0.391
PRIVATE SECTOR
-0.177 -0.086 -0.517 -0.391 .714(b)
Residual(a) HL EZY 2 UNDRSTND
0.08 -0.084 0.099 -0.166 -0.068
MORTG PRCS
0.014 -0.005 -0.038 0.033 -0.038
EMI FIX
-0.002 -0.006 0.019 0.038 -0.062
SRVC RCVD
-0.002 -0.057 0.025 -0.028 0.009
INTRST CHRG BY BNK
-0.025 0.054 0.05 -0.013 -0.079
HL FVOR
-0.045 0.006 -0.004 -0.062 0.016
DOC PRCZER
0.042 -0.046 -0.036 0.055 0.084
PRCZING FEES
0.019 0.045 -0.027 -0.079 -0.005
SENCTION PRCZER
0.05 -0.03 -0.017 0.021 0.087
SENCTION TIME
-0.005 0.042 0.026 -0.032 -0.013
4 CLZR CHRGD
-0.091 -0.034 -0.03 0.038 -0.124
ONLINE
-0.119 -0.106 0.022 0.031 -0.001
INTRST AS INCME LVL
-0.032 -0.204 0.06 -0.017
SIZ WHL NNP EMI
-0.032 -0.054 0.03 0.004
FCLTY PRVD BANK
-0.204 -0.054 -0.071 0.122
PUBLIC SECTOR
0.06 0.03 -0.071 0.125
PRIVATE SECTOR
-0.017 0.004 0.122 0.125
a Residuals are computed between observed and reproduced correlations. There are
53 (38.0%) nonredundant residuals with absolute values greater than 0.05.
b Reproduced communalities
a. Reproduced Correlations - This table contains two tables, the

reproduced correlations in the top part of the table, and the residuals in
the bottom part of the table.
b. Reproduced Correlation - The reproduced correlation matrix is the

correlation matrix based on the extracted factors. You want the values
in the reproduced matrix to be as close to the values in the original
correlation matrix as possible. This means that the residual matrix,
-3-
which contains the differences between the original and the reproduced
matrix to be close to zero. If the reproduced matrix is very similar to
the original correlation matrix, then you know that the factors that were
extracted accounted for a great deal of the variance in the original
correlation matrix, and these few factors do a good job of representing
the original data. The numbers on the diagonal of the reproduced
correlation matrix are presented in the Communalities table in the
column labeled Extracted.
c. Residual - As noted in the first footnote provided by SPSS (a.), the

values in this part of the table represent the differences between
original correlations (shown in the correlation table at the beginning of
the output) and the reproduced correlations, which are shown in the top
part of this table.
Factor Transformation Matrix
Factor 1 2 3 4 5 6
1 .457 .512 .529 -.282 .386 .141
2 .736 -.603 -.030 .180 .010 .247
3 -.019 .105 .308 .874 .207 -.293
4 -.076 -.060 -.509 -.019 .855 -.003
5 .443 .566 -.601 .177 -.276 -.126
6 -.217 .198 -.060 .303 -.031 .904
Rotation Method: Varimax with Kaiser Normalization.
a. Factor Transformation Matrix - This is the matrix by which you

multiply the unrotated factor matrix to get the rotated factor matrix.
-3-
Rotated Factor Matrix(a)
Factor
1 2 3 4 5 6
HL EZY 2 UNDRSTND .058 .503 .133 .115 .025 .157
MORTG PRCS .025 .464 .661 .035 .095 -.172
EMI FIX .015 .603 .432 -.016 .293 .038
SRVC RCVD .250 .012 .325 -.195 .771 .018
INTRST CHRG BY BNK .178 .637 .148 -.270 .477 -.051
HL FVOR .035 .148 -.005 .142 .593 .090
DOC PRCZER .277 .101 .857 -.095 .143 .117
PRCZING FEES .549 .104 .361 -.193 .123 .155
SENCTION PRCZER .748 .034 .282 .038 .021 .110
SENCTION TIME .919 .011 -.016 -.084 .030 .197
4 CLZR CHRGD .605 -.167 -.038 .080 .168 -.078
ONLINE -.075 -.016 -.131 .659 -.042 -.046
INTRST AS INCME LVL .016 -.453 -.195 .409 .063 -.183
SIZ WHL NNP EMI .041 -.114 .131 .909 .039 -.058
FCLTY PRVD BANK .133 -.615 -.034 .231 .000 .014
PUBLIC SECTOR .198 .001 .012 -.141 .125 .804
PRIVATE SECTOR -.087 .556 -.028 -.008 .089 -.312
a Rotation converged in 6 iterations.
Factor Matrix(a)
Factor
1 2 3 4 5 6
HL EZY 2 UNDRSTND .416 -.181 .185 -.162 .311 -.065
MORTG PRCS .639 -.208 .292 -.261 -.231 .216
EMI FIX .701 -.242 .225 -.034 .019 .097
SRVC RCVD .582 .298 .124 .485 -.165 .199
INTRST CHRG BY BNK .780 -.184 .043 .273 -.070 -.173
HL FVOR .293 .061 .312 .489 .152 .038
DOC PRCZER .662 .259 .086 -.250 -.217 .464
PRCZING FEES .568 .431 -.102 -.127 -.024 .013
SENCTION PRCZER .435 .608 .088 -.238 -.036 -.177
SENCTION TIME .384 .744 -.112 -.132 .084 -.393
4 CLZR CHRGD .106 .577 .124 .046 -.141 -.240
ONLINE -.321 -.001 .565 -.120 .198 -.074
INTRST AS INCME LVL -.498 .249 .315 .139 -.107 -.022
SIZ WHL NNP EMI -.265 .199 .818 -.166 .123 .144
FCLTY PRVD BANK -.424 .461 .087 .025 -.054 .168
PUBLIC SECTOR .262 .322 -.284 .090 .521 .142
PRIVATE SECTOR .302 -.466 .214 .034 -.148 -.323
Extraction Method: Alpha Factoring.
a 6 factors extracted. 20 iterations required.
-3-
a. Rotated Factor Matrix - This table contains the rotated factor
loadings (factor pattern matrix), which represent both how the variables
are weighted for each f actor but also the correlation between the
variables and the factor. Because these are correlations, possible values
range from -1 to +1. On the/format subcommand, we used the
option blank(.30), which tells SPSS not to print any of the correlations
that are .3 or less. This makes the output easier to read by removing the
clutter of low correlations that are probably not meaningful anyway.
For orthogonal rotations, such as varimax, the factor pattern and factor
structure matrices are the same.
b. Factor - The columns under this heading are the rotated factors that
have been extracted. As you can see by the footnote provided by SPSS
(a.), six factors were extracted (the six factors that we requested).
Factor Score Coefficient Matrix
Factor
1 2 3 4 5 6
HL EZY 2 UNDRSTND -.007 .200 -.031 .082 -.052 .127
MORTG PRCS .007 .204 .245 .038 -.153 -.180
EMI FIX -.044 .303 .031 .090 .037 .102
SRVC RCVD -.039 -.408 .015 -.128 .927 -.151
INTRST CHRG BY BNK .059 .461 -.213 .000 .306 -.100
HL FVOR -.036 .023 -.092 .072 .263 .081
DOC PRCZER -.051 -.312 .920 -.130 -.235 .089
PRCZING FEES .079 -.009 .069 -.039 -.034 .006
SENCTION PRCZER .205 .016 .059 .029 -.114 -.064
SENCTION TIME .848 .180 -.311 .019 -.218 -.063
4 CLZR CHRGD .129 -.076 -.043 .001 .073 -.158
ONLINE .003 .088 -.057 .181 .014 .051
SIZ WHL NNP EMI .036 .099 .059 .895 .140 .137
FCLTY PRVD BANK .013 -.261 .055 -.006 .076 -.040
PUBLIC SECTOR -.193 .083 -.065 .098 .093 1.080
PRIVATE SECTOR .041 .221 -.078 .031 -.014 -.160
Factor Scores Method: Bartlett.
-3-
Factor Transformation Matrix
Factor 1 2 3 4 5 6
1 .350 .631 .498 -.298 .350 .140
2 .768 -.561 .078 .109 .128 .246
3 .023 .167 .160 .877 .309 -.286
4 -.192 -.170 -.375 -.208 .866 -.027
5 -.085 .266 -.331 .294 -.013 .852
6 -.493 -.399 .686 .029 .126 .334
a. Factor Score Coefficient Matrix - This is the factor weight matrix

and is used to compute the factor scores.
Factor Score Coefficient Matrix
Factor
1 2 3 4 5 6
HL EZY 2 UNDRSTND -.039 .274 -.049 .135 -.070 .307
MORTG PRCS .033 .203 .296 .042 -.198 -.285
EMI FIX -.047 .292 .041 .094 .025 .147
SRVC RCVD -.034 -.370 .039 -.132 .825 -.127
INTRST CHRG BY BNK .062 .379 -.190 -.050 .371 -.192
HL FVOR -.062 .021 -.121 .086 .372 .170
DOC PRCZER -.055 -.332 .865 -.127 -.193 .096
PRCZING FEES .063 -.003 .084 -.033 -.036 .088
SENCTION PRCZER .225 .029 .055 .041 -.121 -.114
SENCTION TIME .832 .198 -.324 .037 -.221 .018
4 CLZR CHRGD .150 -.110 -.030 -.016 .083 -.270
ONLINE .012 .126 -.074 .223 -.008 .066
SIZ WHL NNP EMI .029 .074 .073 .861 .141 .139
FCLTY PRVD BANK .012 -.257 .062 -.007 .073 -.041
PUBLIC SECTOR -.178 .094 -.060 .087 .097 .949
PRIVATE SECTOR .088 .245 -.103 .022 -.019 -.357
Factor Scores Method: Bartlett.
Discussion
Factor analysis helps us to identify the underlying dimensions,
or factors, that explain the correlations among a set of variables. This is
exactly what our study tries to capture. This study aims to factorize the
categories of decisions that a customers takes while seeking home loan
-3-
from Banks . Here we do not aim to reduce variables for any further
multivariate analysis.
Scree Plot
5
Eigenvalue
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Component Number
Interpretation of Results
The null hypothesis is that the population correlation matrix is
an identity matrix rejected by Bartlett’s test of sphericity. Thus factor
analysis may be considered as an appropriate technique for analyzing
the correlation matrix
The tables showed above shows the application of principle

component analysis. In communalities tables it can be seen that
communality for each variables between1 to 17 is unity as unities were
inserted in the diagonal of the correlation matrix.
The scree plot shows the Eigen value for each 17 components.
The Eigen value for the factors is expected in decreasing order of
magnitude as we go from factor 1 to 17. The Eigen value for the factor
indicates the total variance attributed to that factor. Eigen values of
these factors should be greater than one to be acceptable.
The total variance explained by the extracted 6 factors is close

to 61% which is acceptable. But the Eigen value of factors 5 and 6 are
less than 1 but close to one. Hence we are taking them into
consideration also.
-3-
Factor 1 accounts for 13.62% of total variance
Factor 2 accounts for 12.89 % of total variance
Factor 3 accounts for 10.67 % of total variance
In component score matrix:
1) factor 1 has high coefficient for variables

• speed and length of time for processing an application
• accessibility of banks employees.
• Document requirements are thoroughly explained
• Mortgage process is thoroughly explained.
• Responsiveness of banks.
• Promptness of employees at bank Home Finance
• Accuracy of paper work done
If these variables are observed they are centered on the

category of decision on the promptness of Banks
employees and can be safely labeled as factor “promptness
in banks”. This factor explains 25.73% of variance. This
suggests that while selecting a home loan institution the
promptness at Banks is the major factor that drives the
decision making of prospective customers.
2) Factor 2 has high coefficient for variables

• Courtesy at banks.
• Fairness of treatment received from banks
• Overall satisfaction
• Recommend to a friend

category of satisfaction with the service provided by Banks and can be
safely labeled as factor “satisfaction”. This suggests when past and
existing customers seek any type of home loan in the near future they
are likely to approach Banks.
3) Factor 3 has high coefficient for variables

• Documentation requirements are minimal.
• Application status

category of decision related to documentation requirement
-3-
and status of an application and can be safely labeled as
factor “Documentation requirement”. The statistics reveal
that we got negative feedback from the customer. This is the
are where Banks needs to concentrate upon to excel in the
highly competitive and growing home loan market.
4) Factor 4 has high coefficient for the variable

• Easiness of application form
This factor contains just one variable and that is easiness to

understand the application form and can safely labeled as factor
“Application”
FINDINGS & SUGGESTIONS
Among the various loans offered the researcher found that most of the
customer availed home loan whereas the takers for Mortgages and
Housing loan are relatively less i.e. 44 percentages have availed home
loan. 31 percentages are auto loan and 16 percentages are of consumer
durable loan respectively. 4 percentages are of personal loan and 2
percentages are of mortgages respectively. Hence it is recommended
for the company to aggressively advertise these loan facilities in both
newspapers and television channels so that many people may be aware
of the same.
♦ From the market research study it has been observed that 90% of the
respondents are aware of home loan.
♦ 62% of the respondents are aware of home loan through agent.
♦ It was founded that 63% of the respondents are rate the service of
home loan as very good.
♦ 90% of the Existing Customers are Happy with the Benefits of home
loan.
-3-
SUGGESTIONS
 The home loan company should concentrate heavily on attractive

advertisements and various Promotional Strategies like, giving
Pamphlets, put the hoardings and banners at important locations
 People should be educated by giving seminar in Business
Conferences, installing stalls in Business Exhibitions. And Company
should conduct seminars in Educational Institutions to provide
information about company and its products.
 Company has to create a sense of security among the customers.

Because most of the people fear about security.
CONCLUSIONS
The results and findings of this research study exemplifies the fact that
an in- depth market research has been conducted and all research work
has been conducted and all the objectives set for the research work has
been fully accomplished and the analysis is also performed to the
maximum extent possible.
An in-depth study has been made on the aspect that influences the
banks to be the best private financier. Customer satisfaction is the core
-3-
element in the business. For customer satisfaction the services have to
be an edge over the other banks, which banks have achieved. Banks is
aptly targeted potential customers among the various levels of people
in India. The banks overall performance and services seems to be
highly satisfied.
From the analysis it is found that some customers have faced some
procedural problem, for which the researcher has given some
suggestions and recommendations.
Banks has got goodwill and reputation among the public and this can
be used for promoting it services. If new promotional activity and
services introduced, it will help very much the organization to increase
the business.
BIBLIOGRAPHY
BOOK REFERENCES:
I. S.P GUPTA, Statistical Methods, New Delhi, Sultan Chand &

Sons Publications,2002
II. KOTLER PHILIP, Marketing Management, New Delhi,
Prentice-Hall of India Pvt.Ltd.,1971
-3-
III. C.R. Kothari, Research Methodology, New Delhi, New Age
Publishers,1995
JOURNAL REFERENCES:
I. ICFAI, Journal of Service Marketing, December 2004

II. ICFAI, Journal of Monetary Economics, November 2004
III. Indian Journal of Marketing May 2004
E-REFERENCES:
I. www.icici/india.com
II. www.sbi.co.in
III. www.hdfc/india.com
IV. www.google.co.in
V. www.citifinancial.co.in
-3-
-3-
Questionnaire
Dear respondent, your valuable time and effort in filling this
questionnaire are highly appreciated. The information
collected through this questionnaire is a part of our
project determining investors’ confidence in the
Indian Stock Market and will be used for academic
purpose only.
CONSUMER PERCEPTION ON HOME LOAN

Share your views by putting a  mark in the boxes against each question. To
maintain confidentiality.
How satisfied are you, about Home Loan???
Name: Profession:
Age: Place:
Qualification: Date:
Cell No: Mail ID:
1- Strongly Agree, 2- Agree, 3-Neutral, 4- Disagree,
5-Strongly Disagree
Sr. Particulars 1 2 3 4 5
No.
1 The application form of Home Loan is easy to understand.
2 The mortgage process has been explained thoroughly.
3 You like to prefer EMI fixed by bank?
4 How do you rate the service received?
5 How do you rate the Interest rates charged by Bank?
6 Do you favor in Home Loan?
7 How do you rate the Documentation Procedure of Bank?
8 How do you rate the Processing Fees of Bank?
9 How do you rate the Sanctioning Procedure of Bank?
10 How do you rate the Sanctioning Time of Bank?
11 How do you rate the Fore Closure Charges of Bank?
12 How do you rate when loan sanctioning is going online?
13 Do you think the interest charged by bank should be different
on the basis of income level?
14 Seize of asset facility by bank is the right step, in case of
nonpayment of EMI?
15 Are you satisfy with facility provide by the bank?
16 Would you like to prefer public sectors bank for home Loan?
17 Would you like to prefer private sectors bank for home Loan?
Anything else you would like to share:-
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Thanks for your valuable inputs.
-3-

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Supervision By: Submitted by:

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

This is to certify that the project entitled

I heartily thank our internal project guide, Dr.R.S.Mohan, Dean , Department of

Name: Sujeet Pandit

project, “Consumer perception towards Home Loan”, supported by Prof. Gazala Y.

Sr. No. TITLE Page No.

5. SBI and many more…

Financial institutions and their services offered:

Attractive interest rates

Door-step service from enquiry stage till final disbursement

Can transfer the customer existing high-interest rate loan

Free personal accidental insurance

Special 100percentage funding for select properties

O Flat, row house, bungalow from developers

O Existing freehold properties

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

O Tiling and flooring

O Internal and external painting

O Plumbing and electrical work

O Grills and aluminum windows

O Construction of underground/overhead water tank

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

O Existing Customer 100percentage of the cost of improvement

O New Customer 5percentage of the cost of improvement

• Adjustable Rate Home Loan

State Bank of India (SBI):

Need for the study:

Analyzing the customer’s PERCEPTION on home loans offered by banks.

1. To find out various types of loan availed by customers in market.

The following hypotheses were set in order to achieve the objectives.

LIMITATIONS OF THE STUDY

1. The study is limited to all over India.

The researcher has to refer few books and magazines to refer

The ICFAI journal of Monetary Economics, Numberv’2004 it is

The ICFAI Journal of Service Marketing Dec’2004 “It is important to

In Indian Journal of Marketing, May’04 Marketing of Banking

Banking services largely depends upon customer demands and their

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

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

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

The different services provided by Banks:

Home Purchase Finance

Fund the customer’s dream home. Get the maximum loan up to a

Home Loan Refinance with top-up

Home Improvement Finance

If the customer is looking to renovate the customer’s home, get up to

Home Extension Finance

Thinking of expanding the customer’s home? Get up to 95percentage of

(Subject to 60 percentage of market value). Get a loan up to Rs. 30

The features of Home Loans:

The advantages of dealing with banks, one of the largest financial

"Home Returns now brings the customer Mortgage Loans for

The advantage of dealing with banks one of the largest financial

Amount of loan from Rs. 2 Lakh to Rs. 1 Crore*.

Loans against rented, vacant and self-occupied residential properties.

3. Mortgages loan for education:

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

A research design can be defined as “Arrangement of condition for

The researcher is interested in knowing the proportion of people in a

DATA COLLECTION METHOD

The data that is used in study in collected by two methods.