Index

Sr. No. Title Page No.

1 Introduction

2 Types of Home Loan

3 Research Design

4 Scope of Study

5 Importance of Study

6 Objective Of Study

7 Research Methodology

8 Reference

9 Finding

10 Suggestions

11 Conclusion

12 Bibliography
 1. Introduction
Home is one of the things that everyone one wants to own. Home is a dream of every
person that shows the quantity of efforts, sacrifices luxuries and above all gathering funds
little by little to afford one’s dream. Home is a shelter to person where he rests and feels
comfortable. The demand of home loans has increased dramatically. For fulfill this purpose
many banks are providing home loans whether commercial banks or financial institutions to
the people who want to have a home. Part of the reason for this increase is because the
accessibility of loans has gotten bigger. Today, home loans are available in the market at
very low interest rates that meet the demands of many home buyers. A home represents the
largest asset that typically people have and this is why home loans have such a huge impact
in the loan market today. When a person purchases a home, he or she will be investing a
huge amount of cash. Many people can’t come up with the whole money to pay out the
house, while some others can’t even afford to invest money for the house they will like to
purchase. When getting a home loan, the individuals should consider taking care of different
aspects related to the home loan.
The origin of western type commercial Banking in India dates back to the 18th century.
The story of banking starts from Bank of Hindustan established in 1770 and it was first bank
at Calcutta under European management. It was liquidated in 1830-32. In 1786 General Bank
of India was set up. The Bank of Calcutta established in 1806 immediately became Bank of
Bengal. In 1921 these 3 banks merged with each other and Imperial Bank of India got birth.
 2. Types of Home Loan
There are different types of home loans available in the market to cater borrowers
different
Needs.
 Home Purchase Loan
 Home Improvement Loan
 Home Extension Loan
 Home Conversion Loan
 Home Construction Loan
 Land Purchase Loan
 Bridge Loan
 3. RESEARCH DESIGN
 Statement of the problem
A strong banking sector is important for flourishing economy. The failures of the banking
sector may have an adverse impact on other sectors. This Study will help us to understand the
housing loan about banking services and products. In this background this study tries to
analyze the housing loan interest rate and various house loan provider company towards
banking services.
 4. Scope of 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.
 5. Importance of Study
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 For the common man to own a roof over his head but they also
help save money in the long run.
2) With skyrocketing real estate prices, people are increasingly opting for housing loans to
acquire their dream home. Interest rates are coming down 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 people still cannot
arrange resources for the down-payment, which comes out to be at least 15 per cent of the
property value. Taking cognizance of the situation, Banks are coming up with home loan
products called "zero down payment loans' wherein 100 per cent funding is provided for
select properties. These lucrative offers are other major reasons for why people are 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. According to industry estimates, the
long term average return in investing in a home is about 20% pa. While the average cost of
borrowing funds in the market today 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 of taxable income maximum up to 1 lakh against repayment of principal portion
per annum. In case a person stays in a rented house, the cost of the loan will be nearly zero
per cent since he will be saving a decent amount on rent.

6. Objective of Study
The following objectives represent the whole of our research work.
  To analyze 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.

7. Research Methodology
I. Method Of Data Collection
Primary data are information collected by a researcher specifically for a research
assignment. In other words, primary data are information that a company must gather because
no one has compiled and published the information in a forum accessible to the public.
Companies generally take the time and allocate the resources required to gather primary data
only when a question, issue or problem presents itself that is sufficiently important or unique
that it warrants the expenditure necessary to gather the primary data. Primary data are
original in nature and directly related to the issue or problem and current data. Primary data
are the data which the researcher collects through various methods like interviews, surveys,
questionnaires etc.

II. Sources Of Data Collection

8. References
 [1] Sangwan, P. and Bhan, K. (2012), “A Comparative Analysis on Home Loans of
Public and
Private Sector Banks in India” 2 (9), 121-126.
 [2] Rao, T.S. (2013), “A study on comprehensive problems of H.D.F.C. and S.B.I.
loan takers in
Andhra Pradesh State”, Innovative Journal of Business and Management, 123-127.
 [3] Gupta, V. P. and Aggarwal, P. K. (2013), “Comparative study of customer
satisfaction in
Public and Private Sector Banks in India”, Global Journal of Business Management,
7(1), 16-26.
 [4] Garg, P. and Sharma, R. (2014), “Home Loan: A Comparative Analysis of S.B.I.
and
H.D.F.C. Bank”, International Journal of Scientific Research, 3(10), 2277-8179.
 [5] Kumara swami, M. and Nayan, J. (2014), “Marketing of Housing Finance- a
Comparative
Study of Public and Private Sector Banks”, Global Research Analysis, 2 (3), 116-120.
 [6] Geete, V. and Thakur, A. (2014), “A comparative study of home loan scheme of
private
Sector Bank and public sector bank (with special reference to S.B.I. and H.D.F.C.)”
International
Journal of Research in Management and Social Science, 2(2), 12-21.
 [7] Gupta, U. and Sinha, R. (2015), “A Comparative Study on Factors Affecting
Consumer’s
Buying Behavior towards Home Loans (With Special Reference to State Bank of
India And
Life Insurance Corporation, Allahabad)”, IOSR-Journal of Business and Management
17 (2).

9. Suggestions
 The documentation work and formalities should be reduced while providing loans
to the customer.
 The bank should improve their customer service.
 The behavior of the staff of the bank towards the customer should be more
personalized.
 The banks need to improve on the customer satisfaction level due to stiff
competition among the banks.
 The booklet and attractive advertisement should be provided to the customer for
awareness about different housing loan schemes offered by the banks
 According to the customer point of view the documentation work should be less
and must be fast procedure in H.D.F.C. bank.
 The banks should focus on the customer satisfaction factors due to stiff competition
among the banks.
 10. Conclusion
The present study concludes that there are various satisfactory factors which affect the
satisfaction level of customers of housing loan. On the basis of collected data, it is being
concluded that customers are satisfied by S.B.I. bank because the interest rate is lower in
S.B.I. as compare to H.D.F.C. Bank and the trust level that customer have with these banks is
very high in comparison to H.D.F.C. Bank, especially older persons are more dependent on
Public banks. Overall in level of customer satisfaction the customer more satisfied with the
S.B.I. Bank in variables of application form of home loan is easy to understand, interest rate
charges by bank, loan processing is fast, employee behavior and public sector bank. But, in
H.D.F.C customer satisfied with the after home loan services provide by your bank as
compare to other bank. So, there is need to reduce the rate of interest, terms and conditions,
procedural formalities and processing fees.
 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
S.K.Chaudhari
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
economies
P.N.VARSHNEY
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://mm.com/admin/upload_data/journal S-jun15mrr.pdf
2. http://www.difference between.info/difference between-nationalized-banks-and-private-
banks
3. http://www.blog.sanasecurities.com/types-of-bank-loans-in-india-interest-rates-and-
charges/
4. http://www.bankandfinancs.com/loan/Home-Loan/Home-Loan-Rates.php
5. https://www.scribd.com/doc/49180381/A-Project-Report-on-Home-Loan