Questionnaire for customers

A. Kindly furnish your personal details by ticking appropriate option.

1. Name of the customer

2. Gender:

a) Male b) Female

3. Age:

a) 20 - 25 years b) 25-30 years c) 30-35 years

d) 35-40years e) 40-45years f) 45-50 years

g) Above 50 years

4. Education qualification:

a) School level b) ITI c) Diploma

d) Degree e) Master degree

5. Marital status:

a) Married b) Unmarried

6. Family type

a) Nuclear family b) Joint family

7. Occupation

a) Service b) Business c) Farming

d) Other

8. Amount of Housing loan

9. Types of Housing loan:

a) Purchase b) Construction c) Renovation

d) Conversion loan
B. QUERIES REGARDING THE COMPLEXITY FACED BY HOUSING

FINANCE CUSTOMER IN GETTING A HOME LOAN

10. Duration taken by your bank to sanction a home loan-

a) 0- 1 month b) 0- 2 months

c) 0-3 months d) more than 3 months

11. Do you think, duration taken by the bank in sanctioning loan is-?

a) Very little b) Justified

c) Long enough d) Very long

12. Do you think that the processing charges of the bank were high-?

a) Yes b) No

13. What do you think about the paper formalities of the Housing Loan?

a) Justified b) Too much

C) QUERIES REGARDING THE INTERNAL ENVIRONMENT AND

ATTITUDE OF THE OPERATIONAL STAFF

14. Was the concerned official available on his seat Yes / No

15. Was he/she helpful and attentive to you Yes / No

16. Was there adequate sitting arrangement for the customer Yes / No

17. Was the concerned official gave you the satisfactory answer to your
Queries? Yes / No

18. Are you satisfied with the overall behavior of the concerned official?

Yes /No

19. Did you observe any behavior of favoritism on part of employees?

 Yes / No

20. Whether adequate drinking water facilities were available in the bank?

Yes / No

21. Was complaints/ suggestion box was kept by the branch?

Yes /No

(D) QUERIES RELATED TO THE PREFERENCES MADE BY

CUSTOMERS IN CHOOSING THE SPECIFIC BANK

22. Why did you choose a nationalized/ private bank to get a home loan
(You can choose more than one option)

(a) More branches (b) Low interest rate

(c)Easy and low cost processing adversting

23. Fast sanctioning loan (e) goods services provided by bank

If any other please specify………………………………………………

…………………………………………………………………………....
 INDRODUCTION

The term ‘housing’ is derived from the Middle English word ‘house’, and from
Aglo-French word ‘huce’ and the German word ‘houce’ adding to these words for
English word ‘house’ in general. The first known use of the term ‘house’ is
Considered to be in 14th Century around.

Housing is one of the basic needs of an individual in terms of safety, security, self –esteem
social. Status, satisfaction, and achievement . As a human being, an individual needs his own
space and privacy, which can be provided by the ownership of a house .The home is the basic
unit of the society .Home provides a platform to the family and the family is the most important
social institution, which leaves its imprint on an individual for whole life .The life of a human
being cannot be imagined without safe, secure and comfortable shelter. The need for shelter is
one of the fundamental requirements, which needs to be attended at priority.

Housing assumes multifaceted significance in terms of degree of economic well being

and human development as well socio-cultural progression and political stability .Besides
being a basic necessity , housing plays a positive role in the economic development of the
country and social development of its people. Housing construction is a labour–intensive activity
capable of absorbing large number of unskilled labour . Further, housing is linked to a variety of
other industries, most of which are also labour intensive. Because of its linkages with the various
other sectors of the economy, housing gives rise to domestic industrial growth. The linkages
also provide a demand basis for industries that never would have been identified as possible
opportunities. Promotion of well-being of the people is the central concern and purpose of all
development efforts. Investments in housing are investments in the development of human
resources, the benefits of which occurs not only to groups and individuals Investments in
housing are investments in the development of human resources, the benefits of which occur not
only to groups and individuals but also to the nation as a whole. Thus, investment in housing
should be conceived as the main framework for social and economic development .
A rapid change in recent population survey the higher demand of dwelling units for
residential purpose .This is coupled due to scarcity of developed land and increased
rural to urban migration in search of employment opportunities. This has resulted in severe
pressure on urban infrastructure in recent years .The consequences have been overcrowding and
unhealthy living environment, shortage of basic amenities and finally social and economical
deprecation .The problem of space, privacy security and sanitation leads to social, economic and
environmental degradation which is determined for society. As per the latest census 2017,
India’s population is over 150 million which is second highest after China with an unfavorable
Land-man ratio. That’s why housing become one of the major problems for the government of
India as well the society .Housing in India has always been a major concern, given the fact of
Increases in population, urban –rural population disparity .Non –availability of timely housing
finance to the borrowers, exhaustive requirement to comply with rules and regulation by the
borrowers often discourage the prospective borrowers from borrowing. Also there are wide
disparities in housing between the affluent ,middle income and low income segments of the
population. Despite efforts taken by the Government of India poor housing conditions haunts
India. In this line the role of banking and financial institutions become important in disturbing
housing loans. Often borrowers faced many difficulties while borrowing housing loans.
Problems may be due to issues relating to provision of collateral, high interest rates,
excessive paper work, delay in dispensing loaned. Therefore it becomes important to
understand the need to analyses the problem to analyses the problem faced by borrowers while
borrowing from various financial institutions.

HOUSING DEVELOPMENT IN INDIA

As India is a developing country it has to maintain a crucial balance between the basic needs of
people and the rapidly expanding population, urbanization and industrialization. As per the
Indian constitution directive principles, the Government have to cater the basic housing needs in
the country . In 1975, state minister’s conference was held in this prospective and recommended
the following suggestions:
 1. A national urbanization policy should be framed to achieve a balanced urban and
regional growth in the country .
2. A national housing policy should be adopted and for this purpose, a national
commission should be set up.
3. A rural housing corporation should be set up for implementing the rural housing
programmer along with rural development through institutional and other finances
4. State Governments should quantify funds out of their annual plan allocation for
housing for the members of the scheduled castes and scheduled tribes .
5. The Central Government should enact legislation on vacant urban property
expeditiously, so that urban and urbansiable lands are made available to the
Government for improving housing conditions for the urban poor as well.
6. Building costs of the houses should be reduced by improved technology ;they should
be the use of local materials and reduction of overheads of public housing agencies.
7. An appropriate proportion of the institutional finances available with states ,should be
allocated for housing building by stepping up the existing investments .
8. The scheme of allotment of house –sites to rural workers should be transferred back to
the central sector to effectively implement it .

Having consideration upon the suggestions of State Ministers, the Government of India
took the following steps for improvement in housing condition in India.

 The Government established the National Building Organization (NBO) in

1945 for research into building techniques and into new methods of house
construction; the National Building Organization was required to sponsor
research work on various aspects of building construction, improvement of
utilization of building materials and on the sociological and economic aspects
of housing.
  The government has created Housing and Urban Development Corporation
(HUDCO) in 1970 to provide loans finance for the housing and urban
development programmers in the country with a primary emphasis on the
promotion of housing for the person belonging to low income groups (LIG)
 The government installed the National Building Construction Corporation
(NBCC) in 1960 with specific objectives of developing quality
consciousness and reducing the costs of construction
 Finally ,the Indian Government has established the National Housing Bank
(NHB) in 1987 for provision the loans for construction and adopted the
National Housing Policy (NHP) in March 1987.

The role of Central Government in social housing scheme is confined to the laying of broad
based on guidelines ,providing necessary guidance and providing financial assistance in the
form of loans and subsidies to the State Government looks after the housing scheme launched
by the Central Government and also launches additional housing schemes as per its regional
requirement.

Meaning of Housing Finance:

Housing finance is a wide point, the idea of which can differ over landmasses, districts
and nations, especially as far as the regions it covers. For example, what is understood by the
term “housing finance” in a developed countries may be very different to what is understood by
the term in a developing country.

Challenges of Housing Finance:

The scope available for housing finance is not without challenges. Banks and other
institutions are facing the following challenges in the area of housing finance.
 1. Declining spread:

There has been a generalized decline in the rate of interest charged by banks of housing loans.
The rate of interest charged by the State Bank of India has declined from 11 percent in April
2002 to 8.5 percent in April 2004. Banks due to competition keep on reducing their interest
rates in order to capture maximum market share. Banks by only lowering the interest rates are
approaching their cost of funds. Though banks are having advantage over HFCs in accessing
to low cost funds, the interest rate war among the banks to capture the market is not healthy
With the increasing delinquency rates, some of the banks might be charging just their cost
of funds as interest on housing loans.

2. Asset liability mismatch:

Banks are mobilizing short-deposits. Housing loans are given for longer terms of 15-20 years.
Thus, the present ALM positioning of banks due to short-term borrowing do not supporting
housing finance. However, banks are in an advantageous position while compared to HFCs.
Banks have the advantage of access to low cost retail funds like savings deposits. Current
account and float funds are low cost funds account for around 33-35% of the total deposits of
banking sector. However, with increasing demand for housing loans from the banking, there is
a bound to be asset liability mismatch.

But this mismatch can be set right with the following solutions.

 Securitization
 Long Term Deposits
 Issue of deposit linked home loan.
 3. Concentration on salaried classed only:

At present, banks in India have been catering mostly to the housing needs of the urban salaried
class only. The expected demand in housing from this particular segment is only around 30%.
Banks have selected this category due to two main reasons. The income of borrower can be
judged accordingly. Thus, banks are mitigating their credit risk by selecting a borrower who
has got the means to repay the loans.
It is estimated that the demand for housing loans from the salaried class is only around 30% of
the total demand. But, there is a very large demand from the other sections of the society too
like business class self-employed, professionals, unorganized sectors, non-service people and
laborers etc. Banks are averse to this category of borrowers because of high credit risk. But, it
is a fact that these segments of customers are also acquiring houses by borrowing money from
the moneylenders etc. at an exorbitant rate of interest. They do repay the loans. Another
bottleneck with this segment is that these customers are tax averse and are evading tax. They
do not file their returns and banks are not in a position to assess their income from authentic
sources like audited balance sheet or income tax returns. Similarly, their repayment capacity
also could not be estimated authentically. These reasons have kept the bankers away from this
segment. But, the current demand from the segment, coupled with the fact that the salaried
class of borrowers has been mostly covered already, banks have to turn towards other
segment. Introduction of a suitable Mortgage Guarantee Scheme will encourage banks to
finance to this segment.

4. Increasing delinquency rates:

Housing finance is one of the most preferred segments for bankers on account of its least
delinquency rates. But of late, the delinquency rates in housing finance are going up. This may
be due to the fact that the growths in housing loans during the past two to three years were
exorbitant and banks were also new to the field of housing finance. Now, that the banks
gained sufficient experience, the delinquency rates will come down in the years to come. A
study of a sample of 100 NPA accounts spread over four nationalized banks was conducted
and the outcome of the study is furnished below:

The main reason for housing loans turning NPA as per the outcome of the study are:

· Loss of job
· Closure of the factory/company where the employee was working.
· Illness /demise of the borrower.
· Dispute between builder and borrower. The assets turning NPA are more in such
cases where 100% finance is made by the bank.
· In some cases, where the rental income from the proposed property to be financed
was also considered for the purpose of arriving at the eligible loan amount, non-
occupancy of the house also result in decreased income to the borrower and a result
installment are paid properly.
· Housing loan turned to NPA in most of the cases, where other incomes like
agricultural income etc. are considered to jack up the loan eligibility. Banks in their
anxiety to book business over finance the borrower, who is unable to service the
installments regularly.
· Another reason for housing loans turning NPA is frauds. This is mainly due to the
anxiety of the bankers to book business. Fraud has occurred in such cases, where an
agent approaches the bank for sanction of housing loans in bunches. Lack for
proper appraisal and follow up were also observed in such cases.
· In the few cases, the same property is mortgaged to two three banks using colour
zerox documents. Bankers have to be extremely taken care regarding this situation.

5. Fixed rate lending risk:

In case of fixed rate loans, banks may face a problem if the cost of funds of the bank goes up
due to increasing interest rate regime. But at present, most of the bank housing loans are
bearing adjustable rate or floating rate. In case of adjustable rate, the interest rate risk gets
passed on to the customer. In case, interest rate move up, the probability of defaults may go up
if adequate income margin for adjusting the increase EMI out go is not made. Ideally around
40% of the monthly income is considered as affordable EMI

6. Customer expectations:

Aspiring homeowners in the country have been making the most competition
finance industry over the past couple of years. In process of attracting more customers
and increased competition, the rate wars among the banks and HFCs have brought down
the housing loan interest rates to the lowest in recent past. However, when the dust
settles, the question at hand remain: Is it the interest rate the only determining factor that
will ensure business in situation where most banks and institutions end up offering
similar rates of interest with only negligible margin of differences .

Importance of Housing Finance:

 The requirement for home loans arises not as a result of property costs are heading
upwards all the time however because home loans create nice sense from a long-run
savings perspective. Not solely are home loans a handy tool for the individual to have a
roof over his head however they conjointly facilitate to save lots of cash within the
future.

 With skyrocketing property costs, folks are progressively choosing housing loans to
a mass their dream home. Interest rates are returning down all the time and therefore the
banks and the housing finance firms are actually falling over one another to lure the
potential home-seekers.
  Even so the tax breaks and generous disposal rates, plenty of individuals still cannot
organize resources for the down-payment, that comes resolute be a minimum of fifteen
per cent of the property price. Taking cognizance of the case, Banks are developing with
home equity loan products known as „zero payment loans‟ whereby one hundred per cent
funding is provided for choose properties. These remunerative offers are alternative major
reasons for why individuals are choosing loans.

 Whether or not one will afford to shop for a home with one's own cash, home loans ought
to be availed as a result of they act nearly as good savings instrument. in keeping with
trade estimates, the long run average come back in investment during a house is
concerning twentieth p.a. whereas the typical value of borrowing funds within the market
these days is concerning seventh p.a. (considering all tax breaks).

 For salaried workers, housing loans are the most effective thanks to avail of tax edges.
many of us merely select the house loans so as to avail these edges. Interest payments up
two to hundred thousand on housing loans are deductible from the taxable financial
gain and there's an additional deduction of taxable income most up to one.5 hundred
thousand against reimbursement of principal portion once a year. Just in case someone
stays during a rented house, the price of the loan are going to be nearly zero percent since
he will be saving a good quantity on rent.

Classification of Houses:

While classifying different types of houses, Census 2001 has used the following
definitions:
  Permanent houses: Houses in which the walls and roof are made of permanent
materials

 Semi-permanent houses: Houses in which either the walls or roof is made of semi-
permanent materials.

 Temporary houses: Houses in which both the walls and roof are made of materials that
need to be replaced frequently.

 Serviceable temporary houses: Temporary houses, in which the walls are made of mud,
unburnt bricks or wood

 Non- serviceable temporary houses: Temporary houses in which the walls are made of
grass, thatch, bamboo, plastic.

Types of Housing Finance:

Various types of home loans are available in India. They are described below:

Home Purchase Finance:

These is the basic home loans for a purchase of new house. This loan will be given for
purchase of new building are the house which is already built.


Home Improvement Finance:

These type of house loan will be given for implementing repairs works and even for
 renovating a house that has been already purchased by an customer .This loan will be
taken mainly to improve the house in both internal and external works like electrical
works, painting etc.


Home Construction Finance:

These type of home loan will be given to constructed a new house .The banks needs a
required document to grant the loan for a customer to construct a house. These type of
loan will be slightly different when compare to a purchase loan.


Home Extension Finance:

. These type of finance will be given to a customer when they are ready to extents they
house with some extra adding to decorate their house .To get this loan the customer
should get a permission from municipal corporation.

Land Purchase Finance:

Land Purchase finance are accessible for buy of land for both home development or
venture purposes. Thusly, client can be allowed this credit regardless of whether client
isn't intending to develop any structure on it sooner rather than later. Be that as it may,
client needs to finish development inside residency of three years on a similar land


 Extension Finance:

Extension Loans are intended for individuals who wish to sell the current home and buy
another. The scaffold credit helps fund the new home, until a purchaser is found for the
old home.
 Balance Transfer:

Parity Transfer credits help client to satisfy a current home advance and benefit the

alternative of an advance with a lower rate of intrigue. Client can exchange the

equalization of the current home advance to any another bank.

 NRI Home Finance:

This is an exceptional home credit conspire for the Non-Resident Indians (NRI) who
wishes to construct or purchase a home or land property in India. They are offered
alluring lodging fund plans with reasonable repayment alternatives by numerous banks in
the nation.

Advantages of housing finance:

The different advantages of home advances emerging to the

clients are:

 Help in owning a home

 Tax advantages of home advances
 Attractive loan costs
 Long term credit
 Repayment plan based on Earning limit of the borrower
 Office of joint credit
 What's more, the favorable circumstances to the bank offering home credit are
additionally gainful. In addition, since the bigger piece of this credit is given
against home loans of individual properties, the penchant of default is low.
Productive administration of Loans and Advances portfolio has expected more
prominent criticalness as it is the biggest resource of the bank having direct
effect its productivity.

Disadvantages of housing finance:

The different disadvantages of home credits are high helped as underneath

 High handling expense

 Delay in handling
 Fluctuating loan fee
 Problems in dispensing

The previously mentioned detriments or constraints can be evacuated by giving

great quick and productive administration to the clients.

Housing Finance Scenario in India

We are taking a gander at the Housing finance Scenario at a stag when the National Economy is
making progress toward recovery, subsequent to reeling under burdensome conditions for in the
course of the most recent three years. The development rate of the economy may go up to
dimensions up to 6%, if the restoration is kept up. Offer markets are not so much turning upward,
however they are settling at levels which can be named as sensible. Mechanical development rate
which was floundering at a low of 1.5% is presently at around 5%. Truth be told, mechanical
credit given out by banks which in ordinary occasions would be around 4-5 times of bank credit
given to lodging, had over the most recent couple of years diminished to levels beneath advances
to lodging advances. Yet, the upbeat component is that mechanical development is getting.
Indeed, the steel area which was pitifully down is currently having any expectations of recovery.

It is just housing, in the midst of all these that appears to have kept up genuinely stable front.
Truly, the late 90s saw notwithstanding lodging experience an awful stage. However, at that
point with that stage crossed, there has been an unfaltering recovery and adjustment of the
market at levels which can be named as sensible from the perspective of both the clients and
those on the supply side. Lodging is a fundamental need and like any essential human need will
be always popular. The potential for lodging in this nation is tremendous by NHB gauges. What's
more, the necessities by NHB gauges are around 20 million houses. There are different
appraisals which recommend that it is at an a lot larger amount. Notwithstanding passing by the
preservationist gauge taken by the NHB, the necessities in the zone of lodging are gigantic. This
truly implies a great deal of speculations taxi be there in the coming years and there is space for
numerous players.

Going by makes sense of sums given by the sorted out monetary segment, the normal of cash
being progressed for buy of housing is in the scope of 20 to 25 thousand cores consistently in
the course of the most recent five years. In the following five years these might be in the district
of 70-75 thousand cores. There is additionally discuss remote direct venture coming in. this will
add to the abilities of the money related part in gathering the prerequisites in the region of
lodging. The considered view on FDI is that it would not at all present hardships to the nearby
designer network. They may then again empower the neighborhood business visionaries to
compose the development business in an increasingly steady manner. The motivation behind
why I adventure forward to state this is fund has been one of the zones of vulnerabilities to the
extent speculations into the development business are concerned. FDIs may finish up reinforcing
this zone by getting account and steadying the development business through the joint venture
course.
To the extent accessibility of fund to the retail clients is worried, there has been a massive
improvement in the likelihood in the course of the most recent couple of years. There are more
than 32 NHB accept/appreciate Housing Finance Companies which dab the guide of this nation
with their quality everywhere. The nationalized banks have what's more made lodging a push
zone and added to the span for propelling credits to people. The LIC HFL, which association I
happen to speak to, itself has more than 200 focuses in this nation which are secured by their
physical nearness. Driving Housing Finance associations like the HDFC, ICIC likewise have a
boundless system everywhere throughout the Country giving out credits to clients for housing.
The financial major, SBI covers more than 500 focuses through their branches where individual
financial division capacities. Different banks also are not a long ways behind in their connect
with the house purchasing public.

Banks have come into this area when credit off take in the mechanical segment has been low.
With part of flust reserves holding on to be sent, the housing scene displayed an appealing
alternative to the banks to channelize their assets. This was especially in this way, in light of the
facts that in the housing division progresses are given against home loan of assets, which keep on
conveying esteem, and subsequently make the loans impressively safe. Indeed, even by the
experience of the housing part in India, NIRs have been probably the lowest when compared
with some other segment of development.

The other critical factor that has kicked up a great deal of action in the recent past, in the housing
area, is the present relentlessly falling financing costs of credits. The clients today appreciate
hude decision and can approach those giving out account at least rates. The fall in the rates has
been exceptional throughout the last 4 to 5 years. From rates that were around 15% and over,
they have plunged to around 9% and even lower. The progressions have come so thick and quick
that an association like our own has needed to update loan costs over multiple times over the
most recent 2 years. Banks which are outside the domain to guidelines of the NHB, have
delighted in certain additional focal points too in the matter of their capacity to contend
regarding loan fees. The money related approach of RBI which has been always giving a sign for
a delicate premium routine has been bringing down its Bank rate and CRR continually therefore,
empowering banks to have plan of action to more noteworthy liquidity at lower cost. For the
Housing Finance Institutions in any case, there has been a trouble of their having the option to
match such loan fee decreases, since the expense of assets obtained before, kept the normal cost
a genuinely abnormal states. In any case, at that point they have fallen in accordance with the
market to stay in dispute. This has had the consequence of cutting down the spread for the
Housing Finance Companies.

The client who is buying a house today has not just the alternatives of intensely most reduced
rates of intrigue, yet in addition decision of various sorts of credits beginning from the house-buy
or house-building advances to house-improvement advances, home value advances [ advances on
home loan of property], home expansion advances, NRI advances and so on. It has never been
exceptional than this ever.

While this is such a positive advancement, to the extent the home searchers are concerned, the
part of home manufacturers are as yet far behind the attractive dimensions. Indeed, even today,
with the sorted out gatherings of Developers, being all things considered, very powerful, still
accessibility of standardized account, as a normal source, has been practically missing the extent
that the normal Developer is concerned. This has been a region of significant worry for the
Builders. The more edified stages of designers at National dimensions like CREDAI and
NAREDCO have been attempting to think about this issue to achieve some dependability on this
front. Truth be told the Housing Finance Companies and the delegates of the designers have been
sitting together to work out some ordinarily concurred techniques whereby money to engineers
can be an increasingly trustworthy course of action. Shockingly, it is this endeavor by the
engineer network that has even fashioned a typical stage for the HFCs to meet! Credit is
absolutely because of the Developers' associations for having brought the HFCs closer, in their
own journey for an answer for the territory of development fund.
 Review of Litreature

1. Anju Otwani ( 2017) Comparative Study of Housing Loan of HDFC and Allahabad
Bank, in this paper Home loan means a sum of money borrowed from a financial Institution or
Bank to purchase a house. Home loan consists of an adjustable or fixed rate payment terms. As
most of the people don’t have the cash funds to pay for a home, outright they can apply for a
home loan which will pay the upfront costs for the home also which will have to be paid back
monthly over a specified period of time. Without home loans most of the people could not afford
to buy a home. According to National Association of Home Builders, the housing industry as a
whole contributes about 17% to 18% of the nation’s GDP. The most common purpose of a home
loan is to provide funds to a buyer who needs to purchase a home. Home Equity loans allow a
home owner to borrow against the difference between the home’s value and the current loan
balance.

2. K.L. Srinivasan (2010) in his paper entitled “A project on Housing Finance How SBI can
establish leadership” has concluded that simplification of the documentation process, careful and
friendly approach systems and procedures, good customer service and non insistence in collateral
securities are the most important variable in the marketing of housing loan schemes by banks.

3.Dr. B.C.M.Patnaik ( 2017) Home Loan The objective of this paper is to understand the
conceptual frame work of home loan in India and to undertake the empirical study on home loan
industry. In this regard secondary data is being used. The various issues related to drivers of
demand in housing, evolution of home loan, Housing in India, importance and types of home
loan have been discussed. Through this paper the basics of housing loan addressed

4. Dr. Amit S. Nanwani(2016) A Comparative Study of home loans offered by public

and private sector bank in Nagpur district. The paper also examined the satisfaction level and
problems faced by customers while availing home loan. For this purpose we have taken four
commercial banks in Nagpur city namely SBI, BOI, HDFC Bank and ICICI Bank. It
includes two public sector banks and two private sector banks. In the research
methodology a sample size of 200 respondents has been taken through random sampling. For the
study we have collected both primary data as well as secondary data. Finally the
whole research was carried out in a systematic way to reach at exact result. The whole
research and findings were based on the objectives.

5. G.Visalatchi (2014) in this paper “A comparative study on the housing loan borrowers of
public sector banks in Harur taluk”. Explored that three component service quality model and
conclude that the survival and growth of a bank does not depend on the size of funds rather it
depends on its ability to provide qualitative to its, borrowers on sustained basis

6.Dr.C. PARAMASIVAN(May 2014) Emerging treads in housing finance in India

In India, providing housing facilities become a challengeable task to the government and its
policies laid down on needing the housing requires meets of the people. Due to growth of income
generation and urbanization, housing sector become a booming industry in the country.
challengeable task to the government and its policies laid down on needing the housing requires
meets of the people. . Due to growth of income generation and urbanization, housing sector
become a booming industry in the country. Therefore Banks and financial institutions were
established a separate division of housing finance to provide finance facilities to purchase,
renovation, construction of houses. In this regards, this paper highlights the nature of housing
finance and its impact in the financial system of the country, major housing finance provider,
problems and prospectus of housing finance in India.
.

7. Dr. G.S. Bhalla(August. 2016) Problems Faced by the Housing Finance Borrowers: A
study Conducted in Punjab. In this paper the author has given clarity about the gap between
the aspirations people have regarding quality housing and their ability to finance due to lack of
funds. This gap is then bridged by ‘Housing Finance’. Thus, it can be rightly said that Housing
Finance exists to make quality housing affordable. (King, Peter, 1960). The study attempts the
problems faced by the home loan borrowers in procurement of housing loan.

8. Kaur R (2013) conducted the study to analyze the level of customer satisfaction in regard
to services provided by HDFC (private sector) and GIC housing finance (public sector)
institutions. The data was collected through questionnaire administered to 100 respondents
selected conveniently, 50 from each institution. It was observed maximum amount of loan was
disbursed by HDFC and maximum loan taken by businessmen followed by government
employees. It was then analyzed that the respondents from GIC HF had borne high cost for
availing loan. Most of the agriculturists followed by private employees have borne high cost for
availing loan. Most of the respondents from GIC HF, agriculturists feel that high rate of interest
is charged. Most of HDFC respondents, government employees are satisfied with the loan
provided. Respondents from GIC HF, most agriculturists and individuals having income from 2
to 3.5 lakh were of the opinion that they have to fulfil more formalities. Respondents from
HDFC, most businessmen and respondents having income upto 3.5 lakhs were of the opinion
that they faced delay in processing of loan.

9.Devlin (2002) studied the choice criteria followed by consumers in choosing the financial
institution and the importance of demographic factors and customers maturity in affecting choice
decision. Using judgemental survey, questionnaire was administered to respondents that
generated 4200 responses from individuals who had chosen a home loan institution. From all the
criteria that were selected in the study from previous literature, it was found that professional
advice is the most cited choice criteria. It was also found that females choose a mortgage
primarily from an institution where they already have an account. Individuals from lower social
class and low household income, asian ethnicity, location whereas those from higher social class
and high household income choose on the basis of previous mortgage. Individuals from non-
white ethnicity choose mortgage institution on the basis of image and reputation of the provider.
They also consider service quality while choosing. Individuals with low education choose on the
basis of cash back being a part of the product features, attractive interest rate and availability of
discounts. It was seen that individuals with high financial maturity choose on the basis of
previous mortgage, interest rates and those with low financial maturity choose on the basis of
professional advice.

10.Marsha Courchane (November 2007)

In 1 November 2007 Marsha Courchane studied about The Pricing of Home Mortgage
Loans to Minority Borrowers: How Much of the APR Differential. The public releases of
the 2004 and 2005 HMDA data have engendered a lively debate over the pricing of
42 mortgage credit and its implications regarding the treatment of minority mortgage
borrowers. We provide a unique empirical assessment of this issue by using aggregated
proprietary data provided to us by lenders and an endogenous switching regression model
to estimate the probability of taking out a subprime mortgage, and annual percentage rate
(APR) conditional on getting either a subprime or prime mortgage. We find that up to 90
percent of the African American APR gap, and 85 percent of the Hispanic APR gap, is
attributable to observable differences in underwriting, costing and market factors that
appropriately explain mortgage pricing differentials. Although any potential
discrimination is problematic and should be addressed, our analysis suggested that little of
the aggregate diffrences in APRs paid by minority and non minority borrowers are
appropriately attributed to differential treatment.

11. Devlin (2002) studied the choice criteria followed by consumers in choosing the financial
institution and the importance of demographic factors and customers maturity in affecting choice
decision. Using judgmental survey, questionnaire was administered to respondents that generated
4200 responses from individuals who had chosen a home loan institution. From all the criteria
that were selected in the study from previous literature, it was found that professional advice is
the most cited choice criteria. It was also found that females choose a mortgage primarily from
an institution where they already have an account. Individuals from lower social class and low
household income, asian ethnicity, location whereas those from higher social class and high
household income choose on the basis of previous mortgage. Individuals from non-white
ethnicity choose mortgage institution on the basis of image and reputation of the provider. They
also consider service quality while choosing. Individuals with low education choose on the basis
of cash back being a part of the product features, attractive interest rate and availability of
discounts. It was seen that individuals with high financial maturity choose on the basis of
previous mortgage, interest rates and those with low financial maturity choose on the basis of
professional advice.

12. Agrawal P1 *and Yadav AK(2015) A Comparative Study of the Public and Private
Sector Bank with Special Reference to Punjab National Bank and HDFC Bank. After passing of
nationalization the Indian banking system has considerably developed with a large network of
branches and wide range of financial instruments. As banking industry is growing today with a
rapid speed and competition it has more than 11,75,150 employee and has a 1,09,811 branches
across India and 171 branches in abroad and have managed deposits of Rs. 67504.54 billion and
bank credit of Rs. 52604.59 billion. The net profit of banks operating in India was Rs. 1027.51
billion against RS. 9148.60 billion turn over during 2012-13. Banking sector has a very
important place in our Indian economy. The amount of the profit indicates the efficiency of the
organization the larger the profit higher the growth rate. The profitability depends on the
effective utilization of funds to procure maximum profit for growth. . The present research paper
is an effort to make a comparative study between the Growth rate in Punjab National Bank and
HDFC Bank. As a study of Growth analysis of both the banks for a period of 10 years, i.e., from
2004 to 2014 is made. The main parameters of growth in banks are Net profit growth, Net assets
growth, ROA (Return on Assets) and NPA.

13.Prabha Garg and Ramphool Sharma (July 2016)

Comparative study of Public and Private Banks in Housing Loan Sector.
In this study I will compare the public and private sector banks in housing loan I have taken six
banks, three from public sector and three from private sector i.e SBI, PNB, CANARA BANK
AND HDFC, AXIS BANK, ICICI BANK. The sample size of my study is 300. In both the
sector all the respondents are interested in floating rate of interest not fixed rate of interest
because they believe in flexibility and the criteria considered by the respondent in selecting the
home loan are flexible repayment period because the procedure of these banks is very simple as
compare to public sector bank. The respondents know about the rate of interest, in public sector
the rate of interest is lower as compare to private sector but now a days the taste and the
preference of the customer is changed because they want to use easiest method for availing the
home loan. In my research all the respondent want easy availability whether it is from public or
private sector.

14.Fulbag Singh and Reema Shrma (2006). This paper is based on a case study of LIC
Housing Finance Ltd., analyzed region-wise disbursement of individual housing loans, their port
folio amounts and default rate for the last ten years i.e. from 1995-96 to 2005-06 by working out
relevant ratios in terms of percentage and compound annual growth rates. The concluding
remarks made in the study were that based on compound growth rates. It was concluded that the
eastern regions ranked first in disbursement of individual housing loans as the company‟s
housing loan schemes reached well in this region. The default rate is low in northern region as
result of effective credit appraisal in this region. More attention to be bid in western central and
southern regions to achieve the disbursement targets. While analyzing the overall position of the
company, it 61 emerges that there is a need to bring down the default figures for the survival of
the intuition.

15. W. R. Anthony Jiram(November 2015) Factor Affecting the Housing Financing of

Bumiputera in Iskandar Malaysia. In this paper the author explain about the housing finance.
Housing financing is one of the important mechanisms that should be considered by all groups to
meet housing needs. Housing financing problems do not only face by the low-income groups, but
also medium income. There are various government initiatives implemented to help the
various government initiatives implemented to help the population, especially for the bumiputera
to own a house. However, due to low purchasing power and difficulties in obtaining financing
facilities affected the bumiputera afford to own a house according to their eligibility. Thus, this
paper presents the overview of the problems and factors that influenced a bumiputera buyer to
obtain financing facilities.