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Home loan Portfolio- A review of literature

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International Journal of Current Advanced Research
ISSN: O: 2319-6475, ISSN: P: 2319 – 6505, Impact Factor: SJIF: 5.995
Available Online at www.journalijcar.org
Volume 6; Issue 9; September 2017; Page No. 5821-5823
DOI: http://dx.doi.org/10.24327/ijcar.2017.5823.0812
Review Article
HOME LOAN PORTFOLIO- A REVIEW OF LITERATURE
Patnaik B.C.M., Ipseeta Satpathy and Nihar Ranjan Samal
School of Management, KIIT University Bhubaneswar, Odisha
ART ICLE INFO AB STRACT

Article History: The present paper is an initiative to understand the various dynamics related to home loan
th portfolio and to undertake empirical study related to home loan. In this regard secondary
Received 19 June, 2017 data is considered. The various variables identified are financial basics are behind drop in
Received in revised form 3rd home cost, interest rate plays an important role, paper work, decrease in profitability,
July, 2017 Accepted 18th August, 2017 awareness among the prospective customers, poor are not getting the budgetary help, re-
Published online 28th September, 2017 arrangement of housing policy of government, service quality, speed of providing services
and implementations of schemes should match the economic profile of the borrowers.
Key words:
Home loan, Bank and Customers

Copyright©2017 Patnaik B.C.M et al. This is an open access article distributed under the Creative Commons Attribution License, which permits
unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

INTRODUCTION Review of papers

Housing finance all over the world are undergoing Goyal and Joshi (2011) have deduced in their study on Social
tremendous changes and have acquired great significance in and Ethical Aspects of Banking Industry that banks can
the present day context of liberalization, globalization and extend themselves as a social and moral oriented association
modernization of the society. A good number of research by just dispensing credits to those social, moral and ecological
works have been undertaken by individual researchers and concern associations.
institutions invariably dealing with different aspects of Kumar and Gulati (2010) examined at the centrality of the
housing finance. A brief review of the major studies which are possession on the Indian local banks adequacy. Data
particularly pertinent for the present study is attempted here. Envelopment Analysis (DEA), which is a non-parametric,
The basic outcomes of such review will be the knowledge deterministic and straight programming based system, was
as to what data are available for analytical purposes, utilized to register open and private division banks
which will help the researcher to specify his/her own effectiveness score. The operational cross-sectional
research problem in a more meaningful way. Thus, review of information of the general population and private area banks
literature is helpful in formulating the research problem and amid the money related years 2005-06 and 2006-07 was
also helps the researcher in deciding about the most utilized and it was found that (1) De nova private division
appropriate methodology to be used. While comparing the banks command the development of effective boondocks of
results of the earlier studies with his/her own results, care Indian household saving money industry; (2) Primarily, the
must be taken to verify whether the objectives and entire specialized wastefulness stops from administrative
methodology are similar. inadequacy rather than scale wastefulness; and (3) Though the
Objectives of the study general population and private part banks' productivity
contrasts have been noted, in a large portion of the cases these
 To understand the various dynamics related to home distinctions are measurably insignificant. Overall, it is
loan reasoned that industry possession is incapable in the Indian
 To undertake empirical study related to home loan – local saving money industry.
portfolio
Naveen K.Shetty and Dr.Veerashekharappa (2009) studied the
Methodology of the study significance of microfinance in achieving money related
The present study is based on the secondary data incorporation. The paper concentrates on effect of the
expanding hole sought after and supply of money related
administrations in India which has prompted the expanding
populace of the nation to be avoided from the formal
*Corresponding author: Patnaik B.C.M budgetary credit framework on housing advance.
School of Management, KIIT University Bhubaneswar,
Odisha Kerry D (2008) broke down, amid the period 1998-2008,
there was a sharp ascent and afterward there was a surprising
Home Loan Portfolio- A Review of Literature
drop in the home costs. Financial basics were the fundamental meriting and poor individuals are not getting budgetary help.
purposes behind these adjustments in home costs. Thusly the New measures are key to guarantee that advance achieve
issue was not a result of subprime loaning, but rather meriting hands.
emotional diminishments in the Fed, a short time later amid
Leelamma Kuruvilla (1999) tosses light on National Housing
the early mid-2000 there was an expansion in the rates of
Policy and new activities in housing money. She proposed
premium; the development of housing was engaged in the
that the adjustment in the lawful casing work, rearranging the
business sectors where there were critical supply-side
strategy for housing money and the dynamic contributions of
limitations, that able to be more value unpredictable. Likewise
the Government in the housing division will moderate the
the issues laid in light of expansion and decline of certain
housing issue.
home loan items, instead of credit lack.
Sendhilvelan and Karthikeyan (2007) RBI has expressed that Mathurn (1993) opined that the money related weight of
the development towards general keeping money ought to interest in housing is by and large substantial when the
have speedier dependability and proficiency of the budgetary proprietor does not have adequate assets accessible to pay for
framework, yet without anyone else it cannot give a viable or the site and the whole cost of development. Consequently, he
feasible answer for the operational issues of individual should make game plans to acquire reserves from some
organizations emerging from credit capitalization, abnormal different sources.
state of NPAs vast resources liabilities crisscross, liquidity
Parekh (1988) reported that the eventual fate of housing fund
and so forth. However in a business sector driven economy to
is to improve the credit start process for housing all through
confront the opposition one variable is the size and
the nation to build up an institutional system that would
subsequently, the passage of Universal banks is unavoidable
encourage the beginning procedure, to distinguish the
for the general monetary advancement of our nation. There is
potential asset base for the framework in general and to
most likely step by step we are moving towards the
disentangle the lawful framework as for danger administration
administration of a couple of substantial banks from the
of housing money organizations.
administration of numerous little banks. This illustration is
accomplished with the idea of widespread managing an Vidhayavathi. K (2002) in her study evaluated the
account which surely fortify the banking sector. performance of housing finance institutions on certain
selected business parameters as well as through an opinion
Talwar (1996) in an article on the present saving money
survey over the home loan seekers and concluded that apart
situation and the requirement for an arrangement change,
from interest rate advertisement, service quality, courtesy and
opines that a noteworthy concern tended to by managing an
speed of service are certain other important dimensions
account segment change is the strengthening of the budgetary
affecting the growth of housing finance industry.
wellbeing of banks. The presentation at prudential standards
is better money related order by guaranteeing that the banks Karthik. G. (1998) in his study about the Housing and
are aware of the danger, benefit of their loan portfolios. Development corporation and national housing bank argued
that profitability and growth of housing finance in India is
Boyd (1994) the study closes on rate of interest charged on
largely based on the development and introduction of new
advances, enthusiasm on bank accounts, notoriety. All these
schemes matching the economic profile of the borrowers.
interest have played an essential part for customers and
This study suggested improvement in schemes is highly
money related execution of a bank in business sector.
essential for the growth of housing finance in India.
However, customers likewise mind other criteria, for
example, the amount of agreeableness of representatives, Thirumann. R.M. (1981) attempted to study the role of Co-
item, online offices, paper work and postliminary. operative societies in lending housing finance in Chennai city.
The study has covered the Importance of housing, its
Spencer (1991) pointed that the significance of bank picture
components, housing shortage in urban and rural areas the
as focused technique for expanding customer activity stream.
role of Government, and the role of private and public sector
Inclination for bank amongst understudies as supplier of
in housing. He also discussed the problems of housing and
money related administrations, more noteworthy trust in huge
housing finance in India.
medium estimated banks, significance of customers by work
force, focused store rates and credit accessibility were the key Usha Patel (1996) clarified that at present housing through
discoveries. bank fund was a piece of bank's need division loaning.
Furthermore, every nationalized bank is relied upon to
Narasimham Committee (1991) In the most recent two
designate each year a predefined rate of stores and plan for its
decades different changes came in the keeping money
arrangement for financing immediate and also circuitous
framework in our nation that were engaged and highlighted
housing programs.
by Narasimham Committee. Till now has progress going on.
By this bank came to know their frail focuses and how to Pillai Kalathil, S.R.(1996) expressed that it will be fitting for
came up. There were numerous angles which decrease in all administrations and open area housing money association
profitability, effectiveness and gainfulness of a bank to have a focal pool course of action of guiding with would be
framework. The board of trustees firmly makes changing, borrowers. Legalities must be rearranged.
solid economy ventures to make Indian banking framework
Naik (1981) uncovered that housing credits are typically best
effective.
in class against the security of home loan of area and the
Rangarajan(1988) Remarks that division of banks credit for working to be developed with the advance. Housing fund is
gainful reason in vital for financial improvement. Banks are along these lines contract account.
more unbending in loaning exercises and along these lines

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 International Journal of Current Advanced Research Vol 6, Issue 09, pp 5821-5823, September 2017

CONCLUDING OBSERVATION 8. Leonard, M. & Spencer. A (1991), “These Importance

of Image as a Competitive Strategy” An Explanatory
Through this study the various variables identified are Study in Commercial Bank”, International Journal of
financial basics are behind drop in home cost, interest rate Bank Marketing vol.9, No.4, pp.25-29
plays an important role, paper work, decrease in profitability, 9. Narasimhan Committee, 1991. Report of the
awareness among the prospective customers, poor are not Committee on the Financial System, Government of
getting the budgetary help, re-arrangement of housing policy India.
of government, service quality, speed of providing services 10. Rangarajan C. (1988), “Central banking and economic
and implementations of schemes should match the economic development Indian experience”. Reserve Bank of
profile of the borrowers. India Bulletin, Vol.62 No.8, pp.645-648.
References 11. Leelamma Kuruvilla (1999). Housing Finance in India,
Indian Commerce Bulletin, September.
1. Goyal, K. A. and Joshi, V. “A Study of Social and 12. Mathur, G.C (1993). Low cost Housing in Developing
Ethical Issues in Banking Industry”. International countries, Oxford And IBH Publishing Company, New
Journal of Economics & Research, 2011 2(5): 49-57, Delhi.
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2. Kumar, S., & Gulati, R. (2009). Measuring efficiency, theory. Current Research in Industrial Relation.
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banks. International Journal of Productivity and Waikato University, NZ. pp14-23.
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How to cite this article:

Patnaik B.C.M et al (2017) 'Home Loan Portfolio- A Review of Literature ', International Journal of Current Advanced
Research, 06(09), pp. 5804-5807. DOI: http://dx.doi.org/10.24327/ijcar.2017.5823.0812

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