A PROJECT

REPORT ON

“ (Topic Name) ”
A PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE

OF BACHELOR OF MANAGEMENT STUDIES

UNDER THE FACULTY OF

COMMERCE BY

(Student Name)

UNDER THE GUIDENCE OF

(Guide Name)

D.S.P. M’s

K. V. PENDHARKAR COLLEGE OF ARTS,

SCIENCE AND COMMERCE,

DOMBIVLI (EAST).

(AUTONOMOUS)

MONTH AND YEAR

March 2022

                                                  
 DECLARATION

I the undersigned (Student name) hereby declare that the work embodied in this
project work titled “(Topic name)”, forms my own contribution to the research work
carried out under the guidance of (Guide Name) is a result of my own research work
and has not been previously submitted to any other University for any other Degree

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

(Student Name)
 
Certified by

(Guide Name)
 
 Dombivli Shikshan Prasarak Mandal’s

K.V.PENDHARKAR COLLEGE OF ARTS,

SCIENCE AND COMMERCE.
(Autonomous)
Dombivli (East) 421203, Dist. Thane.  

CERTIFICATE
 

This is to certify that (Student name) has worked and duly completed his project work for the degree
of Bachelor of Management Studies under the Faculty of Commerce in the subject of Finance/
Marketing/ Human Resource and his project is entitled, “(Topic Name)”, under my supervision.

I further certify that the entire work has been done by learner under my guidance and that
no part of it has been submitted previously for any Degree of any university.

It is his/her own work and facts reported by his/her personal findings and investigations.

(Guide Name)
Research Guide

Seal of the college

Date of submission   _______

External Guide

ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and depth is so
enormous.
I would like to acknowledge the following as being idealistic channel and dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. Suryakant Lasune for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator Prof. (Coordinator Name), for her
moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof.
(Guide Name) whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported me
throughout my project.
 INDEX
     
CHAPTER NO TITLE OF THE CHAPTER PAGE NO
     
1 INTRODUCTION  
1.1 Introduction  
1.2 History of banks  
1.3 Functions of banks  
1.4 Types of bank  
1.5 Services offered by banks  
1.6 History of loan  
1.7 Types of loan  
1.8 Types of home loan  
1.9 Advantages of home loan  
1.1 Dis-advantages of home loan  
1.11 Security required for home loan  
1.12 Charges of home loan  
1.13 EMI  
1.14 Types of interest rates  
1.15 Steps involved in taking home loan  
1.16 Determination of home loan  
1.17 Tax benefits  
1.18 Role of government  
1.19 Government scheme of housing  
1.2O Pradhan mantri awas yojana  
1.21 Housing policies in India  
     
2 RESEARCH METHODOLOGY  
2.1 What is research methodology?  
2.2 Objectives  
2.3 Hypothesis  
2.4 Scope of the study  
2.5 Limitation of home loan  
2.6 Importance of home loan  
2.7 Sample size  
2.8 Method of data collection  
2.9 Technique  
2.1 Tabulation of data  
     
3 LITERARTURE REVIEW  
3.1 Review of other researcher  
3.2 References  
     
4 DATA ANALYSIS , INTERPRETATION  
  & PRESENTATION  
     
5 CONCLUSIONS AND SUGGESTIONS  
5.1 Conclusions  
5.2 Suggestions  
5.3 Bibliography  
 Chapter No 1. INTRODUCTION

1.1 Introduction:-

India’s banking sector is constantly growing; there has been a noticeable change in transactions through
ATMs, and also internet and mobile banking. Following the passing of the Banking Laws (Amendment) Bill
by the Indian Parliament in 2012, the landscape of the banking industry began to change. The bill allows the
Reserve Bank of India (RBI) to make final guidelines on issuing new licenses, which could lead to increase
the banks in the country. Some banks have already received licenses from the government, and the RBI's
new norms will provide incentives to banks to spot bad loans and take requisite action to keep rogue
borrowers in check. Over the next decade, the banking sector is projected to create up to two million new
jobs, driven by the efforts of the RBI and the Government of India to integrate financial services into rural
areas. Also, the traditional way of operations will slowly give way to modern technology. Home is the most
important human need, next only to food, clothing and shelter.

Home is an important facet of economic development; it is a

basic need of a human being. It is a place where everyone can relax after returning home from day’s tiring
work. It is a place where everyone can give time to his/her family and spend beautiful moments with family
members. It is a fundamental demand for living and one of the keys to peace and happiness. Every creature
yearns for a home. The first and the best training ground for human beings’ development of their varied
facilities is home. It constitutes a very significant part of the social and physical environment where the
individuals grow and mature as good citizens. It also plays an important role in creating employment,
maintaining health, social stability and preserving decent human life.

Definition of Home:-

“Home is the social unit formed by a family living together.”

– Merrian Webster Dictionary

“Home is the place where your parents live and where you grow up”

--- Macmillan Dictionary

Home full fills many requirements. Home provides aesthetic satisfaction, emotional satisfaction, mental
health, physical health, comfort and safety. It provides shelter from the dangers of fire and vagaries of
weather, it creates conditions promoting good health such as pure water and disposal of all kinds of waste, it
provides adequate space of privacy, it creates/provides congenial surroundings in which a person can work
and relax. Housing is a highly complex product. It is a bulky, durable and permanent product. It has fixed
location, being used only in the place where it is built. Once built, it 3 tends to remain in existence for many
years. The houses range from single – family houses to many other types. But housing is more than a
complex product. It is both an economic and social process. It plays a tremendous role in the economy.
Housing has highly significant social implications because it provides the shelter for our basic unit – the
family. Almost every person is affected in his day-to-day living by the kind of house in which he lives.1 In
popular imagination a house is a building with a kitchen, a bathroom, bedroom and a lounge. It will be built
sturdily enough to withstand natural elements, and it will have an address on the register of the post-office.
Some of the housing in India’s largest cities fit this sort of description. But many city dwellers do not live in
such places. Some of the poorest are housed in space on a pavement, near to their low-paid work. Others will
have a roof, walls and a door, set in a wasteland along river banks, close to railway lines, or in any place
where there is a patch of land available.2 We have a many sided view of housing. It is a shelter, it is related
to capital markets, it is within state roles, it has connection to urbanization in development as a whole, and it
is somewhat tied to structural condition in the economy. It can be viewed as consumption but to see it as
production yields insights into its structural and gender inequalities and its productivity in society. After
discussing what a ‘home’ is and what ‘housing’ let is us now discuss ‘housing’ in a historical perspective.

Every citizen of the country dreams of having his own house. Home is a basic need of a human being; it is
an important facet of economic development. The dream home is not very far away with home loan, which
will fulfill the dream into reality. The demand for home loans has increased manifold in the last decade.
There are number of housing finance companies and banks offering cheap home loans at a low interest rate.
The home loan schemes offered by both public and private sector banks are very competitive. Our study
aimed at comparative analysis of home loans schemes offered by public sector and private sector banks in
Nagpur. 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.

A home loan is a long term commitment which is critical. The demand for home loans has increased
manifold in the last decade. The reason for this growth is not hard to see, changing mindset with
globalization and integration with the developed economies, where mortgages rule the roost, income tax
sops in the Union Budgets and substantial rise in the income-generating capacity of Indian youth. So, the
present scenario of home loans shows good amount of growth and is heading for a bright future. There are
number of banks and housing finance companies offering cheap home loans at a low interest rate. The home
loan schemes offered by both public and private sector banks are very competitive. Mostly people prefers
public sector banks for home loans, especially because they believe that it is more secure bank and interest
rate is lower. On the other hand the private sector banks are coming daily in our country and the preference
of younger population is changing because of services & facilities provided by them. And the most
important thing is that the customer should know about each and every term related with Home Loans before
applying for a Loan. There are different types of home loans tailored to meet customer needs like Home
Purchase Loans, Home Improvement Loans, Home Construction Loans, Home Extension Loans, Home
Conversion Loans, Land Purchase Loans; Bridge Loans &Mortgage Loans offered by public and private
sector banks.
1.2 History of banks: -

In India, the banking system is as old as early Vedic period. The bookof Manu contains reference regarding
deposits advances, pledge policy ofloan, and rate of interest. From the beginning of 20th century banking has
beenso developed that in fact, has come to be called “LIFE BLOOD” of trade andIn India, banking has
developed from the primitive stage to the modernsystem of banking in a fashion that has no parallel in the
world history.With the dawn of independence, changes of vast magnitude have takenplace in India. After
independence India launched a process of plannedeconomic activity in order to overcome the multitude of
problems it faced asan underdeveloped nation. The increasing tempo of economic activity lead to
tremendous increase in the volume and complexity of banking activity.Therefore, the role of banks has had
to expand at a fast pace.2As engines of development and vehicle of silent Socio-economicrevolution in the
country, Indian banks have assumed new responsibilities inthe fields of geographical expansion,
functionaldiversification and personalportfolio. Indian banking transformed itself from ‘Class banking to
Mass banking’ The banking system, the most dominant segment of financial sector,accounts for over 80% of
the funds flowing through the financial sector.4A banking sector performs three Primary functions in an
economy: Theoperation of the payment system, the mobilization of savings and theallocation of savings to
investment projects. By allocating capital to thehighest value use while limiting the risk and cost involved,
the banking sectorcan exert a positive influence on the overall economy, and thus of broad macroeconomic
The origin of the Indian banking industry may be traced to theestablishment of bank of Bengal in Calcutta
(now Kolkata) in 1786. Thegrowth of banking industry in India may be studied in terms of two broadphases.
Pre-independence (1786-1947) and Post-independence (1947 tilldate). The Post-independence phase may be
further divided into three subphases such as pre-nationalization period (1947-1969) Post nationalization
period (1969 to 1991) and Post-liberalization period (1991 till date).

Pre-Independence Era:-
At the end of late 18th Century, there were hardly any bank in India inthe modern sense of the term’ banks’.
Some banks were opened at that timewhich functions as entities to finance industry, including speculative
trade.With the large exposure to speculative ventures, most of the banks opened inIndia during that period
could not survive and failed. The depositors lostmoney and lost interest in keeping deposits with the bank.
Subsequently,banking in India remain the exclusive domain of Europeans for the nextseveral decades until
the beginning of 20th Century.At the beginning of 20th Century, the Indian Economy was passingthrough a
relative period of stability. Around five decades have elapsed sincethe India’s first war of
Indianindependence and the social, industrial andother infrastructure have developed. At that time there were
very small banksoperated by Indians and most of them were owned and operated by particularcommunity.
The banking in India was controlled and dominated by thepresidency banks, namely, The bank of Bombay,
The bank of Bengal and thebank of Madras-which later on merged to form the imperial bank of India.The
objectives of banks in the colonial era were mainly helping thecolonial rulers in raising the resources for
their empire building activities andfacilitating training activities of the numerically small mercantile.India
has a long history of both public and private banking. Modernbanking in India began in the 18th century,
with the founding of the EnglishAgency House in Calcutta and Bombay. In the first half of the 19th Century
three presidency banks were founded. After the 1860 introduction of limitedliability, private banks began to
appear and foreign banks entered into themarkets. The beginning of the 20th Century saw the introduction of
Joint stockbanks. In 1935, the presidency banks were merged together to form theImperial Bank of India,
which was subsequently renamed the State Bank ofIndia. Also that year, India’s Central Bank, The Reserve
Bank of India beganoperation6.When India emerged as an independent nation, it inherited a wartorn
economy be devilled by shortage of food grains, unemployment and the pangsof partition. The banking
system, with shareholder orientation, was not wellorganized. The banks till then were discharging the
functions of a traditionalfinancial intermediary. To reorient them as instruments of economic change
was indeed a stupendous task considering the narrow objective adopted by thebanks at the time of Indian
independence7

Post-Independence era:-
With the dawn of Independence changes of vast magnitude have takenplace in India. At the time of
Independence in 1947, the banking system inIndia was fairly well developed with over 600 commercial
banks operating inthe country. However soon after independence, the view that the banks fromthe colonial
heritage were biased in favour of working capital loans for tradeand large firms and against extending credit
to small scale enterprises,agriculture and commoners, gained prominence. To ensure better coverage of
banking needs of larger parts of economy and the rural constituencies, theGovernment of India nationalized
the Imperial bank which was established in1921 and transformed it into the State Bank of India with effect
from 1955.8Despite the progress in 1950s and 1960s, it was felt that the creation of SBIwas not far reaching
enough since the banking needs of small scale industriesand the agricultural structure was still not covered
sufficiently. This waspartially due to the existing close ties commercial and industry houses
maintained with the established commercial banks, which give them anadvantage in obtaining credit.9
Additionally, there was a perception that banksshould play a more prominent rule in India’s development
strategy by mobilizing resources for sectors that were seen as crucial for economicexpansion.. As a result,
the policy of social control over banks wasannounced. Its aim was to cause changes in the management and
distributionof credit by commercial banks.

1.3 Functions of bank:- Banks act as intermediaries between those who have surplus money and those
who need it. To receive deposits and to advance loans are thus the two main functions of all commercial
banks. In short, they borrow to lend. They borrow in the form of deposits and lend in various forms of
advances. Besides, there are other incidental functions which have developed according to the needs of
society. Some of the most essential functions of commercial banks are as follows:-
 Functions of
banks

Exchange of Diversification
Mobilising
goods and and management Giving loans Creating deposits Remitting funds
savings
services risk

1. Mobilising savings:-
Financial system mobilizes saving from many diverse individuals and invest in project
which enables economic growth.
2. Facilitating the exchange of goods and service: -
A financial system facilitates transaction in the economy, by providing the
mechanism to make and receive payment.
3. Facilitating trading diversification and management of risks: -
Financial system helps to manage risk with individual firm by investing in a
diversified portfolio of innovative projects.
4. Giving Loans:-
But receiving of deposits is not the whole story about a bank’s functions. If that were
so, how could a bank pay interest? Hence, after collecting money by way of deposits, a bank invests it or
lends it out. Money is lent to businessmen and traders usually for short periods only. This is so because the
bank must keep itself ready to meet the demands of the depositors, who have deposited money for short

periods.

5.  By Creating a Deposit:-

 Cash credit is another way of lending by the banks. When a person wants a loan from
a bank, he has to satisfy the .manager about his ability to repay, the soundness of the venture and his honesty
of purpose. In addition, the bank may require a tangible security, or it may be satisfied with the borrower’s
personal security. Usually such security is accepted as can be easily disposed of in the market, e.g.,
government securities or shares of approved concerns. Then details about time and rate of interest are settled
and the loan is advanced. A borrower rarely wants to draw the whole amount of his loan in cash. Usually he
opens a current account with that amount the bank, if he already has not got an account with this bank. Now
it is exactly as if that sum had been deposited by him. This is how a deposit is ‘created’ by a bank. That is
why it is said “every loan creates a deposit.” A cheque book is given to the borrower with the right to draw
cheques up to the full amount of the loan, but interest is charged on the whole sum even though only a part is
withdrawn. After the period, for which the money has been borrowed, is over, the borrower returns the
amount with interest to the bank. Banks make most of their profits thus by giving loans.

 6. Remitting Funds:

Banks remit funds-for their customers through bank draft to any place where they
have branches or agencies. This is the cheapest way of sending money. It is also quite safe. Funds can also

be remitted to foreign countries.

7. Providing Locker Facilities:

Implies that commercial banks provide locker facilities to its customers for safe
keeping of jewellery, shares, debentures, and other valuable items. This minimizes the risk of loss due to

theft at homes.

8. Discounting of Bill:
Discounting of bill is a process of settling the bill of exchange by the bank at a value
less than the face value before maturity date. According to Sec. 126 of Negotiable Instruments, “a bill of
exchange is an unconditional order in writing addressed by one person to another, signed by the person
giving it, requiring the person to whom it is addressed to pay on demand or at fixed or determinable future
time a sum certain in money to order or to bearer.”

The facility of discounting of bill is used by the organizations to meet their immediate need of
cash for settling down current liabilities.
1.4 Types of banks:-

There are two types of banks 1. Private sector banks .2. Public sector banks

Types of
banks

Public banks Private banks

Nationalized banks are also known as public sector banks. A nationalized bank is formed by taking a bank
and its assets into the public ownership. The national government of the country holds the ownership of
nationalized banks. In nationalized banks the government controls the bank. This could refer to taking
control of the public shares, change in management and new corporate strategy. Government carries out
nationalization in order to meet certain goals like:-
1. To bring the regional equality.
2. To expand the spectrum of banking facilities in a uniform manner.
3. To provide banking facility in less developed regions.
4. Nationalization sought to find the monopoly control of big industrialists on the system.
 5. It aimed at giving more credit to sectors that required to be prioritized.
6. To raise the confidence of public in banking system
7. It aims at generating enough funds that can be utilized in various development schemes for the country.
Types of nationalised banks are as follows
 Names of
public banks

Syndicate Bank of Corporation

Dena bank UCO bank Canara bank
bank India bank

Private sector banks are owned by the private lenders. The private banks are also managed and controlled by
private promoters and these promoters are free to operate according to the market forces. The interest rates
of private banks are costly as compared to public sector banks. Banking has been originated in the form of
private banking an individual or in partnership. The second type includes incorporated banks that are
specialized in wealth management especially for high net-worth individuals and are supposed to be the first
banks that were formed to manage the finances of the wealthy families. Generally, the private banks are
looked as a large organization with global operations. These banks are not incorporated. In U.K. and
Switzerland, these banks have been existing since a long time. A private bank can also refer to a private
sector bank or a bank that is not owned by the government.

Names of
private banks

Bandhan
AXIS bank HDFC bank IDFC bank Yes bank Induslnd bank
bank
1.5 Services offered by banks:-

Both the Private and Public banks offers different types of services to the customers they are as follows.

SERVICES OFFERED
BY BANKS

Bank draft Bankers cheque

RTGS NEFT

Bank overdraft Cash credit

1. Bank Draft:

Bank draft is a facility allowed to customers for sending money to other places. Generally, banks allow this
facility to the account holders only. When a customer wants to send money to other places then he will have
to fill a specific proforma for this purpose. The name of the person/party to whom the amount is to be sent,
the amount for which the draft is required, the place for which the draft is required, bank charges are
mentioned in the proforma. The bank will issue a draft to the customer after debiting his account with the
said amount.

The customer will send the draft to the person/party to whom the money is to be paid. The recipient of the
draft will deposit the draft with his bank and the bank will credit the amount to his account. The bank also
sends an intimation to the branch where the draft is payable. It is time-consuming process of transferring
money and bank charges are also high on the drafts.

2. Banker's Cheque:

Banker's cheque means pay order issued by bank itself withdrawing the amount from payer's account. It will
be safe for payee because it cannot bounce. It is also a method of sending money by a bank. It is similar to
that of draft. The banker issues a cheque in the name of the party to whom the customer wants to make
payment. The bank charges commission for this service as is done for issuing a draft. A banker's cheque is
generally used for making local payments. The banker's cheque is paid at par.

3. RTGS (Real Time Gross Settlement):

It is a system to transfer funds from one bank to another bank on a 'real time' and 'gross basis'. The
settlement in 'real time' means payment transaction is not subjected to any waiting period. The transaction is
settled as soon as processed. 'Gross settlement' means the transaction is settled on one to one basis, without
bunching or netting with any other transaction.

Once processed, the payment is final and irrevocable. This system of electronic transfer takes place with the
help of Central Bank of the country. The electronic payment system is maintained or controlled by the
Central Bank of the Country.

In India, Reserve Bank of India (RBI, Central Bank of the Country) maintains this payment network. RTGS
is the fastest possible money transfer system. Core Banking enabled banks and branches are assigned an
Indian Financial System Code (IFSC) for RTGS and NEFT purposes.

This is an eleven digit alphanumeric code and unique to each branch of bank. The first four alphabets
indicate the identity of the bank and remaining seven numerals indicate a single branch. This code is
provided on the cheque books which are required for transaction along-with recipient's account number.
Customers can access RTGS facility between 9 a.m. to 4.30 p.m. on week days and 9.30 a.m. to 1.30 p.m. on
Saturday. This timing may also vary from bank to bank, depending upon the timings of the branches.

4. NEFT (National Electronic Funds Transfer):

NEFT refers to an online system for transferring funds from one financial institution to another within India.
The system was launched in November 2005 and was to inherit every bank that was assigned to the SEFT
clearing system. There is no minimum or maximum limit for fund transfer in NEFT system. The persons or
parties which have bank accounts, generally use this facility.

This facility is open even to those, who do not have bank account. The persons without bank accounts can
deposit cash at the NEFT-enabled branch with instructions to transfer funds using NEFT. A separate
Transaction Code (No. 50) has been allotted in the NEFT system to facilitate walk-in-customers to deposit
cash and transfer funds to the beneficiary.

Comparison between RTGS and NEFT:

(i) The main difference between the two is that RTGS is on gross settlement basis, NEFT is on net
settlement basis.
(ii) RTGS completes transactions in real-time while NEFT completes transactions in cycles.

(iii)The transfer in RTGS is completed on a one to one basis, while NEFT is on a deferred net basis, where
transfers are bundled and deferred for a specific time.

(iv) RTGS is a high value transfer system, handling funds worth Rs, 1, 00,000 and above, while NEFT
transfers smaller amounts below Rs. 10,000.

5. Bank Overdraft:

An overdraft is an advance given by the bank allowing a customer to overdraw his current account up to an
agreed amount. An overdraft account is operated in the same way as a current account. In overdraft the
interest is charged on the credit actually utilised, i.e. to the extent amount is overdrawn.Overdraft facility is
widely used by the businessmen. They can use more money than the credit amount in their account, and
secondly, interest is paid only on the amount actually withdrawn from the bank and not to the overdraft limit
allowed by the bank.

6. Cash-credit:

Under cash-credit a bank advances loans to the customer on the basis of his current assets, receivables or
fixed assets by hypothecating them in favour of the banker.

Basically, cash-credit differs from overdraft in two respects(1) security (2) duration

Generally, cash-credit is advanced against current assets and receivables, while overdraft is allowed against
negotiable security. Further, overdraft is, usually, a temporary facility, while cash credit is relatively a long
term facility. The rate of interest charged on overdraft may be lower because of lesser risk and service cost.

Individual Banking—Banks typically offer a variety of services to assist individuals in managing their
finances, including:

 Checking accounts, Savings accounts, Debit & credit cards, Insurance, Wealth management.
Business Banking—Most banks offer financialservicesforbusinessowners who need to differentiate
professional and personal finances. Different types of business banking services include:
 Business loans, Checking accounts, Savings accounts, Debit and credit cards
Merchant services (credit card processing, reconciliation and reporting, check collection), Cash management
(payroll services, deposit services, etc.)
Digital Banking—The ability to manage your finances online from your computer, tablet, or smartphone is
becoming more and more important to consumers. Banks will typically offer digital banking services that
include:
 Online, mobile, and tablet banking, Mobile check deposit, Text alerts, E Statements, Online bill pay.
1.6 History of loan

The term loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets
over time, between the lender and the borrower. In a loan the borrower initially receives an amount of
money called the principal amount. The amount of money is paid back in regular instalments or partial
repayment on an annual basis each instalment being of the same amount.
There is no certainty about how the loans started, but one can easily assume that ever since
the concept of ownership came into existence people have been practicing lending and borrowing. Various
forms of lending are found to be existing in ancient Greek and Roman times and even the bible mentioned
monetary loan. However the modern history of loan started much later. In the history of loans the
“Indentured loan” was one of the earliest forms of lending which was practiced in the middle ages till the
19th century by the land owners and rich people who allowed poor people in need of money to borrow in
exchange of indentured servitude. The borrower had to work for several years to clear their debt. They had
no rights and were considered by many rich people as “Slave labour”. However money lenders played an
important part in the history of loans and both the English word “Bank “ and “Bankrupt” have origin in the
Italian money lenders.

1.7 Types of loan:-

Both the private and public sector banks offer different types of loan some of them are as follow:-

Personal
loan

Education Home
loan
Types loan

of loan
Bussines Car loan
loan
1. Personal loan:-This loan can be availed to meet the expenses related to marriages, travel, honeymoon,
holiday, and medical expenditure or for any other personal use .It is also available to pensioners, defense
pensioners. As the name suggests, loans received as personal could be utilized by the recipient for any
requirement. For example – marriage, home improvement, travel or any miscellaneous expenses. The
interest rate is highest for this category of loan.
2. Home loan: - IT is usually taken for a very long duration. It is a life time dream of every individual to
have his/her own house. It is a primary human need next in importance only to food and clothing however, is
a major expenditure and cannot be funded out of a family’s normal monthly income or saving. A home loan
is based on mortgage and is like any other loan which is offered to a borrower against a security. In case of
home loan security is the home loan is offered to a borrower to purchase or to build a new house on the basis
of his/her eligibility and the bank’s lending rules. Normally, 80% of property value is granted as the loan
amount. in exceptional cases, it can reach to 85-90% also. According to National Association of Home
Builders, the housing industry as a whole contributes about 17% to 18% of the nation’s GDP. Home loan is
the funds buyers have to borrow usually from a bank or other financial institution to purchase property.
Generally secured by a registered mortgage to the bank over the property being purchased.
3. Car loan: - For those individuals who prefer to travel more conservatively or to get to their destination
faster, a two wheeler is as much faster. With newer models coming out each year the options available to the
customers are both attractive as well as convenient. All resident Indians, salaried people, professionals, and
self- employed businessmen and framers can apply for this loan. These days’ automobile companies have
ventured into finance by setting up separate subsidiary companies solely for this purpose. They are able to
offer the best interest rates often with zero interest rate schemes. They usually undercut any bank’s finance
terms since they are able to eat into their profit margin on the underlying vehicle.
4. Education loan: - Education is the most important investment one can make in life.Higher studies and
specialization in certain fields call for additional financial support from time to time. Just like personal loans,
the rate of interest is really high for this category. However the big advantage here is that most banks will
give you a grace period before your EMI’s or repayment terms start. The grace period takes into account the
duration for which your education lasts i.e. repayment starts once you complete your education and get into
job market.
5. Business loan: - Again, the interest rate is really high for this category mostly because of the risk
involved. Business loan facility enables individuals, proprietorships such as partnership firms and co-
operative societies to avail of working capital or undertake development of shops or by way of loan /
overdraft. The loan is provided against the security of tangible collateral securities in the form of mortgage
land and building.
1.8 Types of home loan:-

Types of home
loan

Home Home extention Home purchase

Stamp duty loan NRI home loan
improvement loan loan loan

1. Home loan for improvement: - These loans are given for implementing repair work and renovation in a
home that has already been purchased by the customer. It may be requested for external works like structural
repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work and painting etc
2. Home extension loan: - Home extension loans are given for expanding or extending an existing home.
For example addition of an extra room. For this kind of loan, customer needs to have requisite approvals
from the relevant municipal corporations.
3. Home purchase loan:- These are the basic home loans for the purchase of a new house. These loans are
given for purchase of a new or already built flat / bungalow / row-house.
4. Stamp duty: -These loans are sanctioned to pay the stamp duty amount that needs to be paid on the
purchase of property.
5. NRI home loan: -This is a special home scheme for the non-resident Indians (NRI) who wishes to build
or buys a home or land property in India. They are offered attractive housing finance plans with suitable
reimbursement option by many banks in the country.
6. Land purchase loan: - Land purchase loans are available for purchase of land for both home construction
or investment purposes. Therefore, customers can grant this loan even if customer is not planning to
construct any building on it in the near future. However, customer has to complete construction within
tenure of three years on the same land.
7. Home construction loan: - These loans are available for the construction of a new home. These
documents required by the banks or banks granting customer a home construction loan is slightly different
from the home purchase loans.
1.9 Advantages of home loan

The various benefits of home loans arising to the customers are:-

(1) Attractive interest rate:-

The various banks over attractive interest rates to boost and help their customers. Many
banks provide loans on fixed or fluctuating rate to facilitate customers as per their needs.

(2) Help in owing a home:-

The home availed by a person with the help of bank because,they provide technical and
financial assistance to customer for owing their dream house.

(3) Capital Appreciation:-

For each one of us who has seen property prices boom over the last five years, the
prospect of mouth-watering capital appreciation is the biggest argument for buying a home. Construction
costs alone, which account for more than 70 per cent of the flat's cost, have risen at 15 per cent annually in
the past decade. Rents too seem to keep up with inflation; making a home one of the few investments can
shield you from inflation for the long term.

(4) Tax benefit on home loan:-

Your home loan principal and interest repayment fetch you attractive tax breaks. And
remember, renting actually is more expensive than just the rent you pay. Your cost is higher since you are
not earning any interest on the deposit amount paid to the landlord (which is quite high in premium
locations) throughout the lease term.

(5) Loan period:-

There are many banks which provide maximum loan tenure of 15-20 years based on the
loan amount and creditability of the customers .This relives the customers to repay loan amount till a long
period.

(6) For accidental death insurance:-

Some banks provide free accidental death insurance with housing loan which is also
beneficial to the customers.

These benefits or advantages of home loan are responsible for making so popular among customers that
a person who don’t have home of their home would like to buy and they do it with home loan.
1.10 Dis-advantages of home loan:-

(1) Delay in processing:-

Many times there are huge delay in processing of providing home loan because various
formulations to be fulfilled in this processes. Due to these delay customers fell mentally and financially
weak.
(2) Problem of disbursement:-
There are many problems in home loan disbursement amount. There are some delays in
disbursement of loan amount to the customers due to legal formalities. This causes problems to the
customers.
(3) High cost:-
The public sector bank charges high processing fees for home loan sanctioning. They are
force to pay serious charges at various stage to fulfil their requirements. Some customers are not able to pay
such charges so such people cannot avail the benefits of home loan.
(4)Fluctuating interest rates:-
Some banks give home loan at floating rates which fluctuates at different interval due to
some reasons. This changes may some time lead to increase in interest rate which will increase the cost of
home loans to the customers.

1.11 Security required for home loan:-

1. A simple registered mortgage which is taken as a security against the loan.
2. In case of jointly owned properties it should be ensured that all the co-owners and co-applicant execute
their documents.
3. In case of flat of a group housing society triparilite agreement shall be entered into.

1.12 Charges of home loan:-

Obtaining a home loan involves different types of fees charged on it like processing fees, administration fees
etc.
1. Processing fees: - it is a fees payable at a time of submitting loan application to the bank which is
normally non-refundable.
2. Repayment penalties: - when the borrower re-pays the loan before the loan tenure bank charges a penalty
which is normally 1%.
3. Delay payment charges: - when there is delay in payment of the EMI bank charges takes payment fees to
the borrower.
4. Cheque bounce charges: - when there is a lack of fund in your account than the bank charges about 250 to
500 rupees penalty.
1.20 Pradhan Mantri Aawas Yojana (PMAY) - Credit Linked Subsidy Scheme (CLSS)

Started in 1985 as part of the Rural Landless Employment Guarantee Programme (RLEGP), Indira
Awaas Yojana (IAY) was subsumed in Jawahar Rozgar Yojana (JRY) in 1989 and has been operating as an
independent scheme since 1996.[4] From 1995–96 the scheme has been further extended to widows or next-
of-kin of defence personnel killed in action, ex-servicemen and retired members of the paramilitary forces
who wish to live in rural areas as long as they meet basic eligibility criteria.Given that India has been
historically a populous and poor country, the need of proper housing for the refugees and villagers has been
a focus of Government's welfare schemes since the time of India's independence.[5] As a result, various
welfare schemes like House Sites cumg Construction Assistance Scheme have been ongoing since the 1950s.
 However, it was only in the 1983 that a focussed fund for creation of housing for scheduled
[5]

castes (SCs), scheduled tribes (STs) and freed bonded labour was set up under Rural Landless Employment
Guarantee Programme (RLEGP). This gave birth to IAY in the fiscal year 1985–86.[5]

"Indira Awaas Yojana" (IAY) was launched by Rajiv Gandhi, the then Prime Minister of
India in 1985 and was restructured as "Pradhan Mantri Gramin Awaas Yojana" (PMGAY) in 2015.Ministry
of Housing and Urban Poverty Alleviation has introduced in June 2015, an interest subsidy scheme called
Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Aawas Yojana (URBAN)-Housing for All, for
purchase/construction/extension/improvement of house to cater Economical Weaker Section (EWS)/Lower
Income Group (LIG)/Middle Income Group (MIG), given the projected growth of urbanization & the
consequent housing demands in India. Pradhan Mantri Awas Yojana – The interest subsidy scheme CLSS
(Credit Linked Subsidy Scheme) introduced by MHUPA (Ministry of Housing & Urban Poverty
Alleviation) was announced by our honourable Prime Minister Sh. Narendra Modi with a vision of housing
for all in 2022. Under PMAY scheme, Customer (i.e. the beneficiary) is eligible to avail interest subsidy on
the purchase/construction/enhancement of a house.PNB Housing Finance offers “Credit Linked Subsidy
scheme (CLSS)” for EWS (Economical Weaker Section), LIG (Lower Income Group), MIG (Middle
Income Group) categories under Pradhan Mantri Awas Yojana.Enjoy interest subsidy of 6.50% p.a for loan
amount upto 12 lakhs. Save upto INR 2.67* lakhs with an effective rate as low as 2.63*% p.a.

Now, it will be known as 'Pradhan Mantri Gramin Awaas Yojana', according to a report in Amar
Ujala. Also, the Modi government has increased the amount sanctioned for this housing scheme. Now,
people entitled to the benefits of the housing scheme will get Rs 1.20 lakh. Earlier, the sanctioned amount
was Rs 70,000. Moreover, under the redesigned scheme - Pradhan Mantri Awaas Yojana - beneficiaries will
be able to take a loan of Rs 70,000.  In addition to above benefits, Rs 12,000 will be given to construct toilet.
It is a social welfare flagship programme by government of India to provide housing for the rural poor. The

scheme was launched by Rajiv Gandhi in 1985 as Indira Awas Yojana.

 Salient features of scheme:

 Interest subsidy benefit is calculated for 20 years

 Benefits available for the first property purchase

 Applicants should be of immediate family including self, spouse and unmarried children only

 Women Ownership is mandatory under EWS & LIG category for purchase of a new house

Eligibility

• The beneficiary family should not own a pucca house in his/her or in the name of any member of his/her
family in any part of India.
• In case of married couple, either of the spouse or both together in joint ownership will be eligible for a single
subsidy.
• The beneficiary family should not have availed of central assistance under any housing scheme from
Government of India or any benefit under any scheme in PMAY.

Beneficiary

The beneficiary family will comprise husband, wife and unmarried children. (An adult earning member
irrespective of marital status can be treated as a separate household in MIG category)

Coverage

All statutory towns as per Census 2011 and towns’ notified subsequently, including planning area as notified
with respect to statutory town.

Purpose

The broad purpose of the scheme is to provide financial assistance to some of the weakest sections of society
for them to upgrade or construct a house of respectable quality for their personal living. [5] The vision of the
government is to replace all temporary (kutchcha) houses from Indian villages by 2017[8]
 Chapter No 2. RESEARCH METHODOLOGY

2.1 What is research methodology?

Research methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically. In it we study the various steps that are generally
adopted by a researcher in studying his research problem along with the logic behind them. It is necessary
for the researcher to know not only the research methods/techniques but also the methodology. Researchers
not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the
median or the standard deviation or chi-square, how to apply particular research techniques, but they also
need to know which of these methods or techniques, are relevant and which are not, and what would they
mean and indicate and why. Researchers also need to understand the assumptions underlying various
techniques and they need to know the criteria by which they can decide that certain techniques and
procedures will be applicable to certain problems and others will not. All this means that it is necessary for
the researcher to design his methodology for his problem as the same may differ from problem to problem.
For example, an architect, who designs a building, has to consciously evaluate the basis of his decisions, i.e.,
he has to evaluate why and on what basis he selects particular size, number and location of doors, windows
and ventilators, uses particular materials and not others and the like. Similarly, in research the scientist has to
expose the research decisions to evaluation before they are implemented. He has to specify very clearly and
precisely what decisions he selects and why he selects them so that they can be evaluated by others also.
According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis
or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching
conclusion and further testing the conclusion whether they fit into formulating hypothesis. Moreover,
research methodology describes the methods used to collect the data and analyzed it by following the
research design, sampling technique, measurement and instrumentation, data collection, conceptual
framework and data analysis. It also comprised of a number of alternative approaches and inter-related and
frequently overlapping procedures and practices. Since there are many aspects of research methodology, the
line of action has to be chosen from a variety of alternative. The choice of suitable method can be arrived at
through assessment of objectives and comparison of various alternatives. Thus for any systematic research
study, a scientific approach is necessary. It is therefore, essential to conceive and plan a systematic design to
arrive at an appropriate conclusion. All the business undertakings are operating in the world of uncertainty,
but research design, more than any other procedure, can minimize the degree of uncertainty to a greater
extent.
2.2 OBJECTIVES:-

The following objectives represent the whole of our research work.

 To analyse the home loan schemes of private sector and Public sector banks.
 To study the preference of consumers towards home loan.
 To study the problems faced by the consumers in obtaining home loan.
 To study whether income level affects preference towards home loan.
 To study the service provided during the procedure of obtaining home loan by private sector and
Public sector banks.

2.4 SCOPE OF THE STUDY:-

Scope of the study is limited to Private sector banks and Public sector banks. While the foreign bank is
excluded from the study as the policies and regulations of foreign banks are different from the other Indian
banks. It is used to get first- hand knowledge about the home loans facilities of Private and Public banks in
India. The scope of the present study is to known about the procedures of home loan, the problems faced by
the customers while taking loans from either public or private banks, to known about the awareness of the
home loan facility in Indian.

The study of this kind will help the respondents to get the ideas about the
various problems and the ways to deal with the problems that arise while taking a home loan.

2.5 LIMITATIONS OF HOME LOAN:-

 This research study was limited only to nationalized and co-operative banks
 This research study was taken in a limited area only (i.e. Kalyan city) and findings may vary if the
area of study is changed.
 The data of 3-5 months is been provided.
 The respondents were very much keen to disclose personal information.
 This research study was time bound and due to this only a few aspects of the problem were taken up
for study.
2.6 IMPORTANCE OF HOME LOAN:-

1) The need for home loans arises not because property prices are heading upwards all the time but because
home loans make great sense from along-term savings perspective. Not only are home loans a handy tool
forthe common man to own a roof over his head but they also help savemoney in the long run.
2) With skyrocketing real estate prices, people are increasingly opting forhousing loans to acquire their
dream home. Interest rates are comingdown all the time and the banks and the housing finance companies
are literally falling over each other to lure the prospective home-seekers
3) Notwithstanding the tax breaks and generous lending rates, a lot of peoplestill cannot arrange resources
for the down-payment, which comes out tobe at least 15 per cent of the property value. Taking cognizance of
thesituation, Banks are coming up with home loan products called ‘zerodown payment loans’ wherein 100
per cent funding is provided for selectproperties. These lucrative offers are other major reasons for why
peopleare opting for loans.

4) Even if one can afford to buy a home with one's own money, home loans should be availed because they
act as good savings instrument. Accordingto industry estimates, the long term average return in investing in
a homeis about 20% p.a. while the average cost of borrowing funds in the markettoday is about 7% p.a.
(considering all tax breaks).

5) For salaried employees, housing loans are the best way to avail of tax benefits. Many people simply go for
the home loans in order to avail these benefits. Interest payments up to ` 1.5 lakh on housing loans are
deductible from the taxable income and there is a further deduction oftaxable income maximum up to ` 1
lakh against repayment of principalportion per annum. In case a person stays in a rented house, the cost of
theloan will be nearly zero per cent since he will be saving a decent amount on rent.
 Chapter No. 3 LITERATURE REVIEW

Review of literature helps a researcher to get acquainted with his/her selected research problem and also may
provide some guidelines in selecting a proper research methodology. It is also helpful in finding out the
research gaps in the existing literature. This will help the researcher in fine-tuning his/her research problem
and methodology. Another advantage of reviewing in the existing literature is that in cases where the
research problems are similar, the conclusions and findings may be easily compared. This will help the
researcher in determining whether his/her findings are possible or not. The literature under review may be of
two types: (i) Concerning the conceptual and theoretical framework. (ii) The empirical literature dealing
with the studies made in the past which are similar to the one that the researcher intended to undertake. The
basic outcomes of such review will be the knowledge as to what data are available for analytical purposes,
which will help the researcher to specify his/her own research problem in a more meaningful way. Thus,
review of literature is helpful in formulating the research problem and also helps the researcher in deciding
about the most appropriate methodology to be used. While comparing the results of the earlier studies with
his/her own results, care must be taken to verify whether the objectives and methodology are similar. While
reviewing the earlier studies a researcher has to state the objectives of the study, describe the concepts and
definitions used, the methodology employed and the important findings and conclusions of the study.

3.1 Review of other researcher:-

1. Birla Institute of Scientific Research (1981)1 in its study makes a comparative assessment of the
performance of public sector banks and major private sector banks since nationalisation. They find that the
performance of public sector banks is not satisfactory in rural development activities when compared to the
private sector banks.
2. R Jayakumar (1993)3 in his study of “Performance of private sector banks in Kerala” makes a
comparative examination of performance of public sector banks and private sector banks in Kerala. He finds
that in Kerala private sector banks perform better than their public sector counterparts
3. Govindarajalu (1996) 5 in his article “by banks and policy makers for the development of banking sector.
Satisfaction and dissatisfaction with bank services” views that the Indian banks have lost the quality of
customer service. The dissatisfaction of customers with bank services is an important issue to be considered
4. Sarkar and Das (1997)6 make a comparison of the performance of the three bank sectors - public, private
and foreign - for the year 1995-1996. These banks are compared in terms of profitability, productivity and
financial management. They find that the public sector banks are very poor in performance on the basis of
these variables than the other two sectors.
5. D Mishra (1997)7 makes a study on the performance of commercial banks in India choosing relevant
parameters like quality of service, risk management, profitability etc. His conclusion is that the banks should
try to increase quality, balance risk management, and optimise profitability in order to survive and succeed.
He identifies four challenges for the bank namely competition, credit, customer and control.

6. N. S. Varghese (2000)9 is of the opinion that new generation private sector banks with their latest
technology are able to implement e-banking and are highly preferred by investors in the stock market. He
also points out that prominent new generation private sector banks like HDFC and ICICI have entered into
internet banking through which greater convenience is offered with lower transaction cost.
7. Anantha Swamy (2001)13 makes an appraisal of the performance of different bank groups in India in the
backdrop of competition, deregulation and changes in the field of banking. He classifies banks into public
sector, old private sector, new private sector and foreign banks. His focus has been on profitability, NPA,
contingent liabilities, spread etc. for the last five years and arrives at the conclusion that the new private
sector banks are performing better than the banks in other sectors.
8. Pushpangadharan’s (2002)17 study on “The quality of customer service in public sector banks” also
shows that public sector banks lag behind private sector banks in customer service. The parameters he used
in the study are facilities and amenities, speed in completing transactions and providing deposit related and
credit related services. The customers of public sector banks are not much satisfied with branch managers’
and employees’ attitudes. The public sector banks are very poor in respect of customer feedback system and
redress of grievances.
9. Qamar (2003) 23 has done a comparative study on the “Profitability and resource use efficiency in
scheduled commercial banks in India”. He finds that efficiency of new private banks and foreign banks is
better though marginally than the old private sector banks and public sector banks.
10.Zhou’s (2004)31 study is on “The dimensions of customer satisfaction in the Chinese retail banking”. The
factors contributing to customer satisfaction are determined using the model of SERVPERF. Her study
points that empathy or responsiveness of the employees, reliability or assurance from the bank and
tangibility of services are the important factors affecting customer satisfaction
11. Chakraborty (2005)33 in the article, “Customer relationship management, a new mantra in Indian
banking” views that CRM has an important role for banks in the marketing of products and services in an era
of technology. By practicing CRM, the customer base and customer loyalty in banks can be increased.
12. Amit and Anwarin (2006)40 view that most of the Indian banks are providing retail banking services like
phone banking, internet banking, multi-city cheque facility, any branch banking and bill pay services. Along
with this technology based services, banks are concentrating on business intelligence for providing better
customer services.
13. A research article entitled “Housing Problem and Public Action: Continued Incompatibility Experience
from a South Indian State” by M. Mahadeva (2004). In this article, the author has analysed the nature and
distribution of the housing problem in Karnataka and examined how the state has addressed this issue.
14. Joshi (1986)^°, has examined the various reasons for declining trends in profitability. His study is based
on published data. He has suggested profits planning both at micro and macro levels for the banking industry
to overcome the declining trends in profitability.
15. Das(1997)''\ compares performance among public sector banks for three years in the post-reform period,
1992, 1995 and 1998. He analysed a certain convergence in performance. He also find that while there is a
welcome increase in emphasis on non-interest income, banks have tended to show risk-averse behaviour by
opting for risk-free investments over risky loans".
16. Yash Paul Pahuja (2003)^°^ said, "SB! is one of the fast growing players in the Indian Banking Industry
with around 13,000 branches (including its seven associate banks) and 51 foreign offices in 31 countries.
These branches handle 25 million transactions a day. The cost of funds is lowest for SBI at 7.6% as
compared to others.
17. Sharma,A.K.(1996) highlights the fact that the challenges of homelessness and urban slums are largely
the spill over problems of inadequate rural habitat. He stated that the housing is closely connected with
growth of population, modernisation, poverty, development and information and the poor people of India,
lack all basic facilities as they are incapable of meeting the rising cost of building materials. He also 14
opined that Indians cannot solve the housing problem without a strong political will and properly designed
strategies.
18. A research article entitled “Housing Problem and Public Action: Continued Incompatibility Experience
from a South Indian State” by M. Mahadeva (2004). In this article, the author has analysed the nature and
distribution of the housing problem in Karnataka and examined how the state has addressed this issue. In
particular, it considers the strategies adopted during the 90s and identifies a number of failures including the
task force on housing. Some of the major weaknesses, pertaining to 51 incidences by type and by rural-urban
areas, on approaches, on financial requirements and issue of development and redevelopment are examined
to propose alternative policy strategies to effectively address the housing problem in the state.
19. A Research Article entitled “Housing Loan Frauds in Banks: Some Precautionary Measures” by Phogat
M. (2006) This article gives the measures for the housing loan frauds in banks. The author concluded that
housing for all envisaged 2 million houses every year out of which 0.7 million are in the urban sector.
Government provided certain relief under Income Tax Act. It motivated many people to avail housing loan.
The author thinks that different frauds committed on various banks can be divided into the following two
categories. i.e. Pre sanction and Post Sanction.
20. In the opinion of Naik (1981) "housing is an essential element of life for most human beings. The
modern concept of housing does not limit the idea of housing merely to the provision of shelter.
21. Dr. Rangarajan C. (2001) said that the financial system of India built a vast network of financial
institutions and markets over times and the sector is dominated by banking sector which accounts for about
two-third of the assets of organized financial sector.
22. DePaul Singh (2001) in his study entitled consumer Behavior and Bank Retail products an Analysis
“Stresses that the borrowers attitude is an important factor for the improvement of housing loan schemes.
23. R.R.Krishna and V.S.Krishna Mouthy (1999) stress in their article entitled “Trend and policy Issues of
Housing finance in India”, that simplified procedures and speedy sanction of housing loans will give a boost
to the constructing houses.

24. Vandell, Kerry D (2008) analyses the sharp rise and then suddenly drop down home prices from the
period 1998- 2008. Changes in prices are for the reasons as such economic fundamentals, the problem was
not subprime lending per se, but the dramatic reductions and subsequent increases in interest rates during the
early- mid-2000 , the housing loan boom was concentrated in those markets with significant supply-side
restrictions, which tend to be more price-volatile. The problem was not in the excess supply of credit in
aggregate, or the increase in subprime per se, but rather in the increased or reduced presence of certain other
mortgage products.
25. Dr. Rangarajan C. (2001) said that the financial system of India built a vast network of financial
institutions and markets over times and the sector is dominated by banking sector which accounts for about
two-third of the assets of organized financial sector.
26. La cour Micheal (2006) examined the home purchase mortgage product preferences of LMI households.
Objectives of his study were to analysis the factors that determined their choice of mortgage product. The
role pricing and product substitution play in this segment of the market and to verify whether results vary
when loans are originated through mortgage brokers. In this case regression analysis has been used and
results have shown that high interest risk reduces loan value.

3.2 References:-

Books:-
1. Research Methodology second edition C.R.Kothari.
2. Banking law and practice P.N.Varshney.
3. Banking and insurance O.P.Agarwal.
4. Home loan counseling R.Bhaskaran.
5. Public sector banks in Indian S.K.Chaudhary.
Journals:-
1. The Indian bankers journal issued on July 2017
2. The Indian bankers journal issued on September 2017
Websites:-
1. :- http://www.blog.sanasecurities.com/types-of-bank-loans-in-india-interest-rates-and-charges/
2. :- http://www.bankandfinance.com/loan/Home-Loan/Home-Loan-Rates.php
3. :-https://www.scribd.com/doc/49180381/A-Project-Report-on-Home-Loan
Chapter No. 4 DATA ANALYSIS, INTERPRETATION AND PRESENTATION

1. Age:-

In home loan is very important. According to this survey 22.6% people have selected yes option for financial
goals, 38.7% has selected no option and 3% for some time option.

2Size of family
Occupation
Gender
1) Do you know about Housing Loan?

2) Have you ever taken/ will take loan?

3) From where have you got information about home loan?
4) Are you aware about the ' Pradhan mantri awas Yojana' of housing loans?
 5) Are you aware about different interest rates charged by nationalise banks and cooperative
Bank?

6) Are you aware about tax the benefits received agains the interest payment for housing
installment?

7) which bank will you preffer/will preferred for housing loan?

Chapter No. 5 CONCLUSIONS AND SUGGESTIONS

5.1 Conclusion

In the conclusion we can say that both Public and Private sector banks truly deserve to be the leading
banks in home loan in India. The services offered by them are very competitive. Mostly people prefer
Private Banks for home loans, especially because they believe that they provide faster services and come up
by new technology which makes the borrower work easier. On other hand, Public sector banks are very strict
and stringent. The documents required for home loan are comparatively more in case of Public sector banks
than the Private sector banks.

It is found that Private sector banks are very popular among the customers
these days. The satisfaction level that customers have with these banks is very high as compared to the
Public sector banks. Customers are associated with banks for many services that they require on regular
basis and people tend to prefer banks that provide better facilities and convenient banking. From the overall
analysis it can be said that the satisfaction level in relation to services provided by the Private Banks are very
high as compared to Public sector banks.
 Different banks offer the same product but their way of service
differs. The customer’s choice the schemes which they fell are good and better for them and the capacity to
repay it on a specified time period.

5.2 Suggestions

 Banks should use easy and simple procedures for sanctioning of home loans for the customers.
 The loan passing procedures should be quicker by the Public Banks like the Private Banks.
 Many attractive advertisements should be provided to the customers for awareness about different
housing loans schemes of Public sector banks like the Private sector banks.
 The loan disbursement amount should be made promptly to the customers enabling them to buy or
construct their home at the earliest, thereby satisfying the customers.

5.3 BIBLIOGRAPHY

Books:-

1. Research Methodology new age international publishers second edition page no. 250
- C.R.KOTHARI
2. Research Methodology new age international publishers second edition page no. 131
- C.R.KOTHARI
3. Banking and insurance Himalaya publishers page no. 89
- O.P AGARWAL
4. Public sector banks in India Rajat publication page no.102
- S.K.CHAUDHARY
5. Banking laws and practices sultan chand and sons publication page no.64
- P.N.VARSHNEY

Journals:-

1. The Indian banker journal published on September 2017 ISSN 2349-7483, priority sector lending.
 2. The Indian banker journal published on july 2017 ISSN 2349-7483, banking and macro economises
page no 13.

3. Indian journal of finance ISSN 0973-8711, performance of Indian banking industry by Shalini Shukla.

4. Indian journal of finance ISSN 0973-8711, Market structure and competition in banking industry.

Websites:-

1. http://ijmrr.com/admin/upload_data/journal_S--8jun15mrr.pdf

2. http://www.differencebetween.info/difference-between-nationalised-banks-and-private-banks

3. http://www.blog.sanasecurities.com/types-of-bank-loans-in-india-interest-rates-and-charges/

4. http://www.bankandfinance.com/loan/Home-Loan/Home-Loan-Rates.php
5. https://www.scribd.com/doc/49180381/A-Project-Report-on-Home-Loan