Indian Bank Home Loan

1.
1 INTRODUCTION
A bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital markets.
Due to their importance in the financial stability of a country, banks are highly regulated in
most countries. Most nations have institutionalized a system known as fractional reserve
banking under which banks hold liquid assets equal to only a portion of their current
liabilities. In addition to other regulations intended to ensure liquidity, banks are generally
subject to minimum capital requirements based on an international set of capital standards,
known as the Basel Accords.
In today’s competitive business world every customer is significant for the lending home
loan. The customer expectation are very high so it should be kept in mind offer them best
possible service. Banks can start some promotional activities to build its brand and make
accepted by all the peoples in the market. The effective marketing channel with the personal
selling is an essential factor influencing bank growth. Service quality and customer
satisfaction are very foremost concepts that banking industry must understand in order to
remain competing in business. It is very crucial to know how to measure these factors from
the consumers’ prospects in order to understand their demands and to make them satisfy.
Banking Services are considered very important because it leads to higher customer
satisfaction, reduced cost, profitability, customer loyalty and retention.
Customer Perception a marketing concept that encompasses a customer’s impression and
awareness about a company or its offering. The market is now mainly consumer driver. The
focus is shifting for product based marketing to need based marketing in banking sectors.
Consumer is given much option to make a decision. In home loan sector is no faulty to this
general trend. So it is important that we study the customer perception of the home loan
customers which will give us feedback or suggestion on how marketing strategies can be
worked.
NEED OF BANK
The fundamental needs of banking consumers are also unchanged. Individuals and
organizations need bank accounts and services that enable them to safely hold cash and make
transactions. They need access to credit — in forms ranging from microcredit to massive
corporate loans — to enable investment and economic advancement. Individuals, businesses,
and institutions need to protect themselves against a range of risks that could not be borne at
either an individual or an organizational level. Consumers need savings and wealth creation
vehicles in which to invest their money. And they need periodic advice on their financial
situation and on appropriate products and services. Finally, the core organizational
capabilities that banks rely on as they pursue their purpose and meet consumers’ needs are
still the same. A strong banking system will be able to improve credit in those sectors which
need credit.
FUNCTIONS OF BANK
Banking systems perform several different functions, depending on the network of
institutions. For example, payment and loan functions at commercial banks allow us to
deposit funds and use our checking accounts and debit cards to pay our bills or make
purchases. They can also help us finance our cars and homes. By comparison, central banks
or systems distribute currency and establish money- related policies. Investment banks or
systems conduct trades or deal with capital markets. Many banks are profit-seeking entities
with stockholders. They obtain profits by charging more interest for loans and paying less
interest on deposits. Therefore, the future of our economy and its growth depends
upon this lending capacity. Therefore, we have to target in ourselves and in our policies.
IMPORTANCE OF BANKING
The banking sector was always deemed to be one of the most vital sectors for the economy to
be able to function. Its importance as the lifeblood of economic activity, in collecting deposits
and providing credits to states and people, households and businesses is undisputable In all
economic systems, banks have the leading role in planning and implementing financial
policy. The difference lies with prioritizing goals and their way of achievement. Based on the
neo-liberal model, achieving greater profits by using all means is an end in itself, while in the
socialistic systems bank operations also aim at improving economy in general and at
satisfying social needs. The financial crisis of 2008, and the way the governments chose to
save the banks by laying the burden on taxpayer shoulders while exercising austerity policies,
triggered a cycle of discussion over many crucial issues.
ECONOMIC DEVELOPMENT THROUGH BANK

The banking system plays an important role in the modern economic world. Banks collect the
savings of the individuals and lend them out to business- people and manufacturers. Bank
loans facilitate commerce. Manufacturers borrow from banks the money needed for the
purchase of raw materials and to meet other requirements such as working capital. It is safe to
keep money in banks. Interest is also earned thereby. Thus, the desire to save is stimulated
and the volume of savings increases. The savings can be utilized to produce new capital
assets. Thus, the banks play an important role in the creation of new capital (or capital
formation) in a country and thus help the growth process. Banks arrange for the sale of shares
and debentures. Thus, business houses and manufacturers can get fixed capital with the aid of
banks. There are banks known as industrial banks, which assist the formation of new
companies and new industrial enterprises and give long-term loans to manufacturers. The
banking system can create money. When business expands, more money is needed for
exchange transactions. The legal tender money of a country cannot usually be expanded
quickly. Bank money can be increased quickly and used when there is need of more money.
In a developing economy (like that of India) banks play an important part as supplier of
money. The banking system facilitates internal and international trade. A large part of trade is
done on credit. Banks provide references and guarantees, on behalf of their consumers, on the
basis of which sellers can supply goods on credit. This is particularly important in
international trade when the parties reside in different countries and are very often unknown
to one another. Trade is also assisted by the grant of loans by discounting bills of exchange
and in other ways. Foreign exchange transactions (the exchange of one currency for another)
are also done through banks Finally, banks act as advisers, counsellors and agents of business
and industrial organizations. They help the development of trade and industry. There are
special types of banks which provide facilities to different kinds of economic activities. Now-
a-days in every country there is a central bank which controls the activities of all other banks,
endeavors to keep the price level steady, and controls the rates of foreign exchange. Therefore
the conclusion of the economic development through banking is explained
TYPES OF BANK
 Commercial banks
 Co-operative banks
 Central bank
 Industrial banks
 Agricultural banks
 Savings bank
 Foreign exchange banks

 Exchange banks
 Private bankers
 Chit funds
Commercial Banks
Commercial banks are the banks that accept money in the form of deposits from the public
and give loans and advances to its consumers by charging interest. They mobilize small
savings and promote the growth of trade and commerce. Generally, commercial banks lend
money for a short period only. They only provide working capital to the organizations. But in
recent times commercial banks are providing long-term capital also to the organizations.
Co-operative Banks
Co-operative Banks are the banks that usually provide short term, medium term, long term
credit to agricultural purposes. Co-operative Banks also provides loans to small-scale
artisans. Co-operative Banks usually provide credit facilities to farmers, small-scale
industries, etc. at a cheaper rate of interest. Co-operative Banks are mainly situated in rural
areas and can also be seen in urban areas.
Central Bank
Every country has its own Central Bank. The Central bank aims at non-profit functioning. It
regulates the monetary and credit system of the country. Central Bank acts as controller,
supervisor, and regulator of the activities of commercial banks and other financial institutions
in the country. The Central bank is considered as the apex institution of the country’s money
market.
Industrial Banks
Industrial banks are also called as Investment Banks. Industrial banks provide long- term
loans to the industries. Industries require long-term capital for buying machinery,
construction of buildings, expansion of operations, etc. These capital required by industries is
provided by industrial banks for industrialists to grow their businesses. Industrial banks
accept long-term deposits from the public. They secure capital by issuing shares and
debentures.
Agricultural Banks
Agricultural Banks are the banks which provide agricultural credit to the farmers. The
Agricultural Development Banks provide medium term and long term credit. Some examples
of Agricultural Banks in India are Agricultural Finance Corporation, Agricultural Refinance
and Development Corporation, National Bank for Agricultural and Rural Development
(NABARD).Agricultural Banks are established by the government to promote agricultural
credit in the country. The banking sector was always deemed to be one of the most vital
sectors for the economy to be able to function. Its importance as the lifeblood of economic
activity, in collecting deposits and providing credits to states and people, households and
businesses is undisputable In all economic systems, banks have the leading role in planning
and implementing financial policy.
Savings Bank
Savings Banks mainly concentrates on the mobilization of savings of the people. In India
Post offices run by Postal department act as savings banks. Since Commercial banks are
providing these facilities of savings banks to the public, the need for separate savings bank is
fading.
Foreign Exchange Banks
Foreign Exchange Banks are the banks which provide finance for foreign trade These banks
accept deposits from the public. Foreign Exchange Banks are specialized banks in providing
credit for the foreign trade. These banks usually have their branches in foreign countries for
uninterrupted functioning of their services But in recent times commercial banks are also
financing foreign trade.
Exchange Banks
Exchange Banks are the banks which operate by financing the imports and exports of the
country. These banks are mainly concerned with providing foreign exchange to their
consumers and help to promote international trade. They also offer to discount of foreign bills
of exchange to their consumers.
Private Bankers
Private Bankers are the individuals who do banking business individually or as a partnership.
It is purely an unorganized sector Most of the private bankers do not receive or accept any
deposits from the public, they do banking business with their own capital. They lend money
to the people for high-interest rates.
Chit Funds
There are chit funds in India. They provide finance to trade and commerce. However, they
cannot be called as banks in the regular sense. The Chit fund business is very large in a
country like India. it is also an unorganized sector in India. These types of bank offers some
types of loans to the public at certain percentage of interest in order to banking development.
A bank’s job is to provide consumers with financial services that help people better manage
their lives. As technology advances and competition increases, banks are offering different
types of services to stay current and attract consumers.
MAJOR SERIVICES OF BANK

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 financial services for business owners 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
 Cash management
Digital Banking
The ability to manage your finances online from your computer, tablet, or smartphone is
becoming more important to customer. Banks will typically offer digital banking services
that include:
 Online mobile and tablet banking
 Mobile check deposit
 Text alerts and E-statements
Loans
Loans are a common banking service offered, and they come in all shapes and sizes. Some
common types of loans that banks provide include:
 Personal loans
 Home equity loans
 Home equity lines of credit
 Home loans
 Business loans
TYPES OF DEPOSIT
 Savings Bank Account
 Current Deposit Account
 Fixed Deposit Account
 Recurring Deposit Account
Savings bank account
As the name suggests this type of account is suitable for people who have a definite income
and are looking to save money. For example, the people who get salaries or the people who
work as laborer’s. This type of account can be opened with a minimum initial deposit that
varies from bank to bank. Money can be deposited any time in this account. Withdrawals can
be made either by signing a withdrawal form or by issuing a cheques or by using ATM card.
Normally banks put some restriction on the number of withdrawal from this account. Interest
is allowed on the balance of deposit in the account. The rate of interest on savings bank
account varies from bank to bank and also changes from time to time. A minimum balance
has to be maintained in the account as prescribed by the bank.
Current deposit account
Big businessmen, companies and institutions such as schools, colleges, and hospitals have to
make payment through their bank accounts. Since there are restrictions on the number of
withdrawals from savings bank account, that type of account is not suitable for them. They
need to have an account from which withdrawal can be made any number of times. Banks
open a current account for them. Like savings bank account, this account also requires a
certain minimum amount of deposit while opening the account. On this deposit, the bank
does not pay any interest on the balances. Rather the account holder pays a certain amount
each year as an operational charge.
Fixed deposit account

Some bank consumers may like to put away money for a longer time. Such deposits offer a
higher interest rate. If money is deposited in savings bank account, banks allow a lower rate
of interest. Therefore, money is deposited in a fixed deposit account to earn a interest at a
higher rate. This type of deposit account allows the deposit to be made of an amount for a
specified period. This period of deposit may range from 15 days to three years or more during
which no withdrawal is allowed. However, on request, the depositor can en cash the amount
before its maturity. In that case, banks give lower interest than what was agreed upon. The
interest on fixed deposit account can be withdrawn at certain intervals of time. At the end of
the period, the deposit may be withdrawn or renewed for a further period. Banks also grant a
loan on the security of fixed deposit receipt.
Recurring deposit account
While opening the account a person has to agree to deposit a fixed amount once in a month
for a certain period. The total deposit along with the interest therein is payable on maturity.
However, the depositor can also be allowed to close the account before its maturity and get
back the money along with the interest till that period. The account can be opened by a
person individually, or jointly with another, or by the guardian in the name of a minor. The
rate of interest allowed on the deposits is higher than that on a savings bank deposit but lower
than the rate allowed on a fixed deposit for the same period. This account further consist of 3
types as follows
 Home safe account or money box scheme

 Cumulative-cum-sickness deposit account
 Home construction deposit scheme or saving account
LOANS
A loan is money, property or other material goods that is given to another party in exchange
for future repayment of the loan value amount along with interest or other finance charges. A
loan may be for a specific, one-time amount or can be available as an open-ended line of
credit up to a specified limit or ceiling amount.
TYPES OF LOAN
1
4
Secured loan
A secured loan is a loan in which the borrower pledges some asset as collateral for the loan,
which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus
secured against the collateral, and if the borrower defaults, the creditor takes possession of
the asset used as collateral and may sell it to regain some or all of the amount originally
loaned to the borrower. An example is the foreclosure of a home. From the creditor's
perspective, that is a category of debt in which a lender has been granted a portion of the
bundle of rights to specified property. If the sale of the collateral does not raise enough
money to pay off the debt, the creditor can often obtain a deficiency judgment against the
borrower for the remaining amount.
Unsecured loan
An unsecured loan is a loan that is issued and supported only by the borrower's
creditworthiness, rather than by any type of collateral. Unsecured loans—sometimes referred
to as signature loans or personal loans—are obtained without the use of property or other
assets as collateral. The terms of such loans, including approval and receipt, are therefore
most often contingent on the borrower's credit score. Borrowers must generally have
high credit ratings to be approved for certain unsecured loans.An unsecured loan stands in
direct contrast to a secured loan, in which a borrower pledges some type of asset as collateral
for the loan, in turn increasing the lender's "security" for providing the loan. Unsecured loans
are bigger risks for lenders, and as a result, they typically have higher interest rates and
require higher credit scores than secured loans, such as mortgages or car loans. In some
instances, lenders will allow loan applicants with insufficient credit to provide a cosigner,
who can take on the legal obligation to fulfil a debt should the borrower default.
Personal Loans
Most banks offer personal loans to their consumers and the money can be used for any
expense like paying a bill or purchasing a new television. Generally, these loans are
unsecured loans. The lender or the bank needs certain documents like proof of assets, proof
on income, etc. before approving the personal loan amount. The borrower must have enough
assets or income to repay the loan. In case of personal loans, the application is 1 or 2 pages in
length. The borrower gets to know about the denial or approval of the loan within a couple of
days. You must remember that the rate of interest associated with these loans can be on the
higher side. The tenure of these loans is not that long. So, if you borrow a big amount, it can
be difficult for you to repay without planning your finances properly. Personal loans can
prove to be of great help when you wish to take a small loan and repay it as soon as possible.
Credit Card Loans
When you are using a credit card, you must understand that you will have to repay for all the
purchases you make at the end of the billing cycle. Credit cards are accepted almost
everywhere, even when you are travelling abroad. As it is one of the most convenient ways to
pay for the things you buy, it has become a popular loan type.In order to apply and avail a
credit card, all you need to do is fill out a simple application form provided by the card issuer.
You can also choose to apply for a credit card online. These plastic cards come with great
rewards and benefits. It’s the loan where you need to repay on time but you are also
handsomely rewarded for using it. Obviously, there are pitfalls associated with this type of
loan.
Home Loans
When you wish to purchase a house, a home loan can help you to a great extent. It provides
you the financial support and helps you buy the house for yourself and your loved ones.
These loan generally come with longer tenures (20 years to 30 years). The rate offered by
some of the top banks in India with their home loans start at 8.30%. Your credit score is
checked before the loan request is approved by the lender. If you have a good credit score,
there is a fair chance that you will be able to enjoy lower rates of interest with your home
loan. Home loans are primarily taken for buying new homes. However, these loan can also be
used for home renovations, home extensions, purchasing land property, under-construction
houses, etc Some of the types of home loan that are available in the market include home
loans for repair and extension, top-up loans, land purchase loan, loan against property, etc.
Education Loans
If you wish to get higher education in a reputed university in a different country, education
loans can help you a lot. These loans are opted by students who wish to study further but
need financial support for pursuing the courses. An education loan covers expenses like
college/university fees, library charges, travel costs related to their course, etc.In order to be
eligible for an education loan, you must submit all the required documents including
invitation letter from the university, educational qualification certificates, etc
1.2 STATEMENT OF PROBLEM
Consumers risk and difficulties faced at the time of getting home loan in bank. A single
customer may face different problems at the time of getting loan. Here in this we can look
over several problems. home loan is attained by many consumers. These two loans are
becoming an important loans among every other loans which bank provide. Now a days
students get loan mainly for their studies which is repaid by them after finishing their studies.
And some other get home loan to have their own house. These two loans has a single
statement of needs.
HOME LOAN stands top in the financial sector today. Housing finance companies play an
important role in the national economy. Though the housing finance banks are fast
flourishing, they face problems due to various reasons. Normally the local bodies make
inordinate delay to approve the sites and plots. So house builders find it difficult to get
approval of their sites, without which they can't borrow loans. There are some laws which are
detrimental to development of housing sectors like Urban Land Ceiling Act and Rent Control
Act. These Acts should be amended so as to make them suitable for the changing needs of the
society. The growth of population results in the shortage of housing continuously. The
Government's initiative for the development of housing is not up to the mark and is not in
support of the successful implementation of this scheme. The cost of construction goes on
increasing as the cost of land is skyrocketing and also the labour and material costs increase
continuously. The lending banks too have enhanced their rates of interest. Moreover, the
housing finance banks advance loans mainly to the salaried class in India. The village people,
unorganized non-regular income groups find it difficult to avail the housing loan facility.
Hence an attempt is made to study the problems faced by the consumers in availing the
housing finance. In such a situation the following factors are important for the analysis. The
majority of poor people dwell in rural areas. The don't have regular monthly income as
employment opportunities are less in rural areas. With no or less savings village people are
unable to think of their own houses. Many banks advertise low rates of interest for housing.
But in reality interest rates are high as they add them with the principal every quarter in a
year. They also include processing fee and other hidden charges.
A home equity loan is a type of loan in which the borrower uses the equity of his or her
home as collateral. The loan amount is determined by the value of the property, and the value
of the property is determined by an appraiser from the lending institution Home equity loans
are often used to finance major expenses such as home repairs, medical bills, or college
education. A home equity loan creates a lien against the borrower's house and reduces actual
home equity
Most home equity loans require good to excellent credit history, reasonable loan-to- value
and combined loan-to-value ratios. Home equity loans come in two types: closed end
(traditionally just called a home-equity loan) and open end (a.k.a. a home-equity line of
credit). Both are usually referred to as second mortgages, because they are secured against the
value of the property, just like a traditional mortgage. Home equity loans and lines of credit
are usually, but not always, for a shorter term than first mortgages. Home equity loan can be
used as a person's main mortgage in place of a traditional mortgage. However, one cannot
purchase a home using a home equity loan, one can only use a home equity loan to refinance.
In the United States until December 31 2017, it was possible to deduct home equity loan
interest on one's personal income taxes. As part of the 2018 Tax Reform bill signed into law,
interest on home equity loans will no longer be deductible on income taxes.
1.3 OBJECTIVES OF STUDY
The objectives of this study is to attain knowledge of the following processing of home loan.
The objectives are as follows
• To know the awareness of the customers on home loan.
• To study the sources of information to customers on loans in bank.
• To know the difficulties of the customers in obtaining home loan.
• To know customer’s satisfaction level while dealing with bank.
• Suggest strategies to increase customer satisfaction of Indian bank and to

understand the reasons for default.
1.4 SCOPE OF STUDY
A customer perception and satisfaction is the stepping stone to create customer relationship.
Therefore it is necessary to continuously study, analyze and understand it and monitor this
understanding to banking management . So that effective decisions can taken in respect to
product, process, promotion and distribution .
1.5 IMPORTANCE OF STUDY
Home loans have an importance purpose in the global economy. Besides helping to for the
employment of bank staff, home builders and real estate agents, home loans also a fuel
mortgage–backed securities. These are investments that earn money based on home owners
paying interest to lenders.
1.6 LIMITATIONS OF STUDY
 Its undertaken for academic purposes only
 Some respondents are not interested in giving information
 Since some information’s were confidential, it is not possible to add them in the
report
 The main limitation of the study is time constraint
 Lack of co-operation among customer.
1.7 CHAPTERISATION SCHEME
• The present study has been divided into five chapters.
• The first chapter gives the intense and clear picture of home loan Which includes
Introduction, Objectives of the study, Importance of study, scope of study, limitations of
study and Chapterisation scheme.
• The second chapter entitled "Profile of Indian bank".
• The third chapter deals with review of literature indicating the reviews and research
done by few authors on the related topics are abstracted as reference to study and research
methodology includes overview of research design, data collection instrument, tools used
etc.,
• The fourth chapter deals with Data analysis and Interpretation.
• The fifth chapter deals with finding, suggestions and conclusion.

2.1 PROFILE OF INDIAN BANK
Is an Indian state-owned financial services company established in 1907 and headquartered
in Chennai, India. It has 20,924 employees, 2900 branches with 2861 ATMs and 1014 cash
deposit machines and is one of the top performing public sector banks in India. Total business
of the bank has touched ₹430,000 crore (US$60 billion) as on 31 March 2019. Bank's
Information Systems & Security processes certified with ISO27001:2013 standard and is
among very few Banks certified worldwide. It has overseas branches
in Colombo and Singapore including a Foreign Currency Banking Unit
at Colombo and Jaffna. It has 227 Overseas Correspondent banks in 75 countries. Since 1969,
the Government of India has owned the bank. As per the announcement made by the Indian
Finance Minister Nirmala Sitharaman on 30 August 2019, Indian Bank will be anchor bank
for the Kolkata-based Allahabad Bank, and this merger is expected to come on force from 1
April 2020, making it the seventh largest bank in the country.
2.2 HISTORY
Early formation and expansion In the last quarter of 1906, Madras (now Chennai) was hit by
the worst financial crisis the city was ever to suffer Of the three best-known British
commercial names in 19th century Madras, one crashed; a second had to be resurrected by a
distress sale; and the third had to be bailed out by a benevolent benefactor. Arbuthnot & Co,
which failed, was considered the soundest of the three. Parry's (now EID Parry), may have
been the earliest of them and Binny and Co.'s founders may have had the oldest associations
with Madras, but it was Arbuthnot, established in 1810, that was the city's strongest
commercial organisation in the 19th Century. A key figure in the bankruptcy case for
Arbuthnot's was the Madras lawyer, V. Krishnaswamy Iyer who founded the Indian bank
which was an offshoot of nationalistic fervour and the Swadeshi movement, when the then
British Arbuthnot Bank collapsed and the Indian Bank emerged. Mr V. Krishnaswamy Iyer
solicited the support of the Nagarathar Chettiars authored by Mr. Ramasamy Chettiar, who
was Annamalai Chettiar's elder brother. Sri V. Krishnaswamy Iyer and Mr. Ramasamy
Chettiar were one of the first directors of Indian Bank. Later on in 1915, Mr. Annamalai
Chettiar was inducted into the board of the Indian Bank. It commenced operations on 15
August 1907 with its head office in Parry's Building, Parry Corner, Madras.
In 1932 IB opened a branch in Colombo. It opened its second branch in Ceylon in 1935
at Jaffna, but closed it in 1939 IB next opened a branch in Rangoon, Burma, in late 1940.
Then in late 1941 IB opened branches in Singapore, Kuala Lumpur, Ipoh, and Penang. The
exigencies of war forced IB to close its Singapore and Malayan branches with months. The
closing of the Singapore branch resulted in little loss to IB; the loss of the branches in Malaya
was much more costly World War II resulted in further financial problems for IB and it was
forced in 1942 to close a number of its branches in India, and also its branch in Colombo.
Founder S. Rm. M. Ramaswami Chettiar
Founded 15 August 1907; 112 years ago
Owner Government of India
Headquarters Chennai, India
Type Public
Products Consumer Banking
Corporate Banking
Finance and Insurance
Mortgage Loans
Investment Banking
Merchant Banking
Private Equity
Private Banking
Savings
wealth management
Credit Cards
Consumer banking
Retail banking, also known as consumer banking, is the provision of services by a bank to
the general public, rather than to companies, corporations or other banks, which are often
described as wholesale banking. Banking services which are regarded as retail include
provision of savings and transactional accounts, mortgages, personal loans, debit cards,
and credit cards. Retail banking is also distinguished from investment banking or commercial
banking. It may also refer to a division or department of a bank which deals with individual
consumers.
Corporate banking
Corporate banking typically refers to financial services offered to large clients (wholesale
clients). The services offered by corporate divisions of banks include: (a) General
commercial banking activities. (b) Services particularly tailored to large clients such as
multinational companies.
Finance and insurance

Financial services are the economic services provided by the finance industry, which
encompasses a broad range of businesses that manage money, including credit
unions, banks, creditcard companies, insurance companies, accountancy companies, consume
r-finance companies, stock brokerages, investment funds, individual managers and
some government-sponsored enterprises Financial services companies are present in all
economically developed geographic locations and tend to cluster in local, national, regional
and international financial centres such as London, New York City, and Tokyo.
Mortgage loans
A mortgage loan or, simply, mortgage is used either by purchasers of real property to raise
funds to buy real estate, or alternatively by existing property owners to raise funds for any
purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the
borrower's property through a process known as mortgage origination. This means that
a legal mechanism is put into place which allows the lender to take possession and sell the
secured property ("foreclosure" or "repossession") to pay off the loan in the event the
borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is
derived from a Law French term used in Britain in the Middle Ages meaning "death pledge"
and refers to the pledge ending (dying) when either the obligation is fulfilled or the property
is taken through foreclosure. A mortgage can also be described as "a borrower giving
consideration in the form of a collateral for a benefit (loan)".
Investment banking
An Investment bank is a financial services company or corporate division that engages in
advisory-based financial transactions on behalf of individuals, corporations, and
governments. Traditionally associated with corporate finance, such a bank might assist in
raising financial capital by underwriting or acting as the client's agent in
the issuance of securities. An investment bank may also assist companies involved in mergers
and acquisitions(M&A) and provide ancillary services such as market making, trading
of derivatives and equity securities, and FICC services (fixed income instruments, currencies
and commodities).Most investment banks maintain prime brokerage and asset
management departments in conjunction with their investment research businesses. As an
industry, it is broken up into the Bulge Bracket (upper tier), Middle Market (mid-level
businesses), and boutique market(specialized businesses).
Merchant banking
A merchant bank is historically a bank dealing in commercial loans and investment. In
modern British usage it is the same as an investment bank. Merchant banks were the first
modern banks and evolved from medieval merchants who traded in commodities,
particularly cloth merchants. Historically, merchant banks' purpose was to facilitate and/or
finance production and trade of commodities, hence the name "merchant". Few banks today
restrict their activities to such a narrow scope.
Private equity
Private equity (PE) typically refers to investment funds, generally organized as limited
partnerships, that buy and restructure companies that are not publicly traded.
Private equity is, strictly speaking, a type of equity and one of the asset classes consisting
of equity securities and debt in operating companies that are not publicly traded on a stock
exchange However, the term has come to be used to describe the business of taking a
company into private ownership in order to restructure it before selling it again at a hoped-for
profit. A private equity investment will generally be made by a private equity firm, a venture
capital firm or an angel investor.
Private banking
Private banking is banking, investment and other financial services provided by banks
to high-net-worth individuals (HNWIs) with high levels of income or sizable assets.
Private banking forms a more exclusive (for the especially affluent) subset of wealth
management. The term "private" refers to customer service rendered on a more personal basis
than in mass-market retail banking, usually via dedicated bank advisers. It does not refer to
a private bank, which is a non-incorporated banking institution.
Savings
In economics, wealth (in a commonly applied accounting sense, sometimes savings) is
the net worth of a person, household, or nation – that is, the value of all assets owned net of
all liabilities owed at a point in time. For national wealth as measured in the national
accounts, the net liabilities are those owed to the rest of the world. The term may also be
used more broadly as referring to the productive capacity of a society or as a contrast
to poverty Analytical emphasis may be on its determinants or distribution.
Wealth management
Wealth management is an investment-advisory discipline which incorporates financial
planning, investment portfolio management and a number of aggregated financial
services offered by a complex mix of asset managers, custodial banks, retail banks, financial
planners and others. There is no equivalent of a stock exchange to consolidate the allocation
of investments and promulgate fund pricing and as such it is considered a fragmented and
decentralised industry High-net-worth individuals (HNWIs), small-business owners and
families who desire the assistance of a credentialed financial advisory specialist call upon
wealth managers to coordinate retail banking, estate planning, legal resources, tax
professionals and investment management.
Credit Cards
credit card is a payment card issued to users (cardholders) to enable the cardholder to pay
a merchant for goods and services based on the cardholder's promise to the card issuer to pay
them for the amounts plus the other agreed charges The card issuer (usually a bank) creates
a revolving account and grants a line of credit to the cardholder, from which the cardholder
can borrow money for payment to a merchant or as a cash advance. A credit card is different
from a charge card, which requires the balance to be repaid in full each month In contrast,
credit cards allow the customer to build a continuing balance of debt, subject to interest being
charged. A credit card also differs from a cash card, which can be used like currency by the
owner of the card. A credit card differs from a charge card also in that a credit card typically
involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a
charge card simply defers payment by the buyer until a later date.
2.2 INDIAN BANK HOME LOAN

Indian Bank offers home loans for both resident Indian and Non-Resident Indians (NRIs) at
attractive rates starting from 8.75% p.a. You can extend the tenure till 30 years. The
applicable processing fee is 0.23% of the loan amount.
Indian Bank Home Loan Schemes
IB Home Loan
 Attractive rates starting from 8.75% p.a.
 Interest concession for women applicants
 Maximum tenure of 30 years
 Zero prepayment charges
Interest Rate
• 8.75% p.a. to 9.05% p.a. (salaried)
• 8.80% p.a. to 9.10% p.a. (self-employed)
Processing Fee
 0.23% of the loan amount
Indian Bank Home Loan EMI Calculator
It’s always advised to calculate your EMI (Equated Monthly Instalment) and processing fee
beforehand so that you can manage your finances in a better way. That way, you will be able
to compare home loan interest rates and schemes offered by other financial institutions. In
order to that, you can use Indian bank Home Loan EMI Calculator. The entire process is
quite simple and hassle-free with a quick turnaround time. All you need to do is enter your
home loan details, including the amount, tenure, interest rate, and processing fee. Hit
“calculate” to check the EMI and processing fee. This will be followed by an amortisation
table giving you a complete breakdown of your payment schedule.
Indian Bank Home Loan Eligibility Criteria
Age 18 years to 70 years
Type of Employment Salaried or self-employed
Nationality Indian or NRI
Documents Required
For salaried
 Proof of identity
 Passport size photograph
 Residential address proof
 Age proof
 Last 6 month’s bank statements
 Last 3 months’ salary slips
 Property-related documents
For self-employed
 Age proof
 Last 6 months’ bank statements
 Business details
 Profit and loss account statements with computation of income plus balance sheet
 Latest Income Tax Returns
For NRIs
 Overseas residential address proof
 Latest NRE account statements
 Business details (for self-employed)
 Work permit or employment contract letter (for salaried)
 Valid Visa and passport copy
 Property-related document
Indian Bank provides home loan to consumers to accomplish their dream of owning a house.
One can apply for Indian Bank Home Loans for a range of purposes such as;
 To purchase / construct a new house / flat.
 To purchase house site and construction of house thereon.
 To purchase an existing house / flat
 To extend an existing house/ additional construction
 To repair / renovate an existing house / flat
 To take over Home Loans from other Banks / Housing Finance Institutions approved
by National Housing Bank for Housing Finance.
 For reimbursement of cost incurred within a period of 6 months for
purchase/construction of house/flat
IB Home Loan Eligibility & Loan Amount
 Minimum age for applying for an individual is 18 years and maximum exit age is 60
years.
 An applicant can avail a loan amount of 36 times of Gross Monthly Income or 60
times of Net Monthly Income whichever is higher.
 For repair or renovation, the maximum amount for loan is Rs. 5 lakhs.
 The repayment of loans for purchase/construction of house/flat, the tenure is 20 years
(including holiday period).
 Maximum repayment period for Repairs and Renovation: 120 months
 Maximum Holiday Period of 18 months is allowed for home loans for the purpose of
construction of House/Flat
Margin & Processing Fee
 Margin for loans:
a. Up to Rs. 20 lakhs : 10%
b.above Rs. 20 lakhs up to Rs.75 lakhs : 20%
c. above Rs.75 lakhs: 25%
d.For repairs or renovation: 30%
Indian Bank Home Loan Interest Rate 2019
Interest
8.60% onwards
Rate
Age
Min. 18 years & Max. 70 years
Criteria
Processing
0.23% of loan amount with max. Rs. 20,470
Charges
Loan
Up to 30 years
Tenure
Loan 60 times of Gross Monthly Income, Rs. 20,000 as Min.

Amount net take home salary
Loan
Amount – Max. 10 lakh
Repair
Prepayment
Nil
Charges
CERSAI
Max. Rs. 100 plus GST
Charges
 Processing fee is at a rate of 0.229% on loan amount with a maximum of Rs.20381/-

IB Home Loan Plus Eligibility & Loan AmountThis loan has a top up loan facility is
available for an existing customer who has successfully paid more than 36 EMIs. Apart from
this, consumers who have 40% gross take home salary post deduction of the anticipated EMI
are eligible for this facility. The loan amount is a minimum of Rs. 1 lakh and maximum of
Rs. 10.00 lakhs.
 LTV (Loan to Value)Ratio of 90% or 80% as the case may be to be maintained for
home loan outstanding and 30% margin on the residual value of the House Property to be
maintained for the top up loan.
 Margin to be 30% on the residual value of the House Property to be maintained for
the top up loan.
 Loan processing fee is charged at the rate of 1.173 % on the total loan amount.
 Revaluation of the market value of property and the residual life are assessed before
the processing of the Indian Bank Home loan. The lingering life of the house /flat should be
more than 10 years in the assessment.
 Maximum allowed loan tenure is 120 months.
 Nil prepayment charges on the Indian Bank Home Loan.
REVIEW OF LITERATURE AND RESEARCH METHODOLOGY
3.1 REVIEW OF LITERATURE
The aim of a literature review is to show particular reader that researcher have read, and have
a good grasp of, the main published work concerning a particular topic or question in specific
field. This work may be in any format, including online sources. It may be a separate
assignment, or one of the introductory sections of a report, dissertation or thesis. In the latter
cases in particular, the review will be guided by research objective or by the issue or thesis
researcher are arguing and will provide the framework for researchers’ further work.
It is very important to note that review should not be simply a description of what others have
published in the form of a set of summaries, but should take the form of a critical discussion,
showing insight and an awareness of differing arguments, theories and approaches. It should
be a synthesis and analysis of the relevant published work, linked at all times to your own
purpose and rationale.
Sérgio Moro, Paulo Cortez, Paulo Rita(2015)
This paper analyzes recent literature in the search for trends in business intelligence
applications for the banking industry. Searches were performed in relevant journals resulting
in 219 articles published between 2002 and 2013. To analyze such a large number of
manuscripts, text mining techniques were used in pursuit for relevant terms on both business
intelligence and banking domains. Moreover, the latent Dirichlet allocation modeling was
used in order to group articles in several relevant topics. The analysis was conducted using a
dictionary of terms belonging to both banking and business intelligence domains. Such
procedure allowed for the identification of relationships between terms and topics grouping
articles, enabling to emerge hypotheses regarding research directions. To confirm such
hypotheses, relevant articles were collected and scrutinized, allowing to validate the text
mining procedure. The results show that credit in banking is clearly the main application
trend, particularly predicting risk and thus supporting credit approval or denial. There is also
a relevant interest in bankruptcy and fraud prediction. Customer retention seems to be
associated, although weakly, with targeting, justifying bank offers to reduce churn. In
addition, a large number of articles focused more on business intelligence techniques and its
applications, using the banking industry just for evaluation, thus, not clearly acclaiming for
benefits in the banking business.
Anita (2014)
In this study the customer satisfaction level between public and private sector banks to get a
bird’s eye view of customer satisfaction practices being adopted by selected banks. It was
also analyzed that customers were more satisfied with the private sector banks than public
sector banks and customer satisfaction is largely dependent upon products availability in the
banks rather than locations of the bank.
Ravi and Kundan basavaraj (2013)
This study analyzed the customer preference and satisfaction towards banking services both
private and public banks in Shivamogga district. The authors found business and vehicle
loans are fast moving than other services and overall satisfaction resulted at 50%. Further,
overall satisfaction on bank deposit schemes resulted positively while other services of
banking still need to be given attention by focusing on customer issues. They authors
suggested that, bankers should work towards 100% customer satisfaction that automatically
fosters customer delight and to sus D. Regis Arunodayam and N. Thangavel (2007) in their
study on ―A study of the Housing Industry with special reference to the city of Chennai
examined the developments in the housing finance in India in the early 21st century and the
magnitude of the problem of housing in the country and the implication of housing policies.
Neeli Prameela, B Abdul Azeem, KV Geetha Devi (2012)
Owing to the high costs involved in increasing the current client base, one of the main goals
of banks and other financial services providers, which operate through the internet, should be
to develop customer loyalty in order to improve their results. To achieve this aim, these
companies face most vital challenge in providing and maintaining service quality. Service
quality is an input of customer trust which becomes satisfaction and lead to loyalty as an
output. But the research in the development of e-loyalty is scarce and partial. This paper
attempts to accumulate literature in order to understand the overall structure of the formation
of e-loyalty. The literature reviewed provide underlying patterns of relationships between
ebanking loyalty and its influencing factors. Such understanding is relevant for academicians
and researchers for furthering the work in this field. The insights into the previous studies,
considered for this paper, are discussed and suggestions for future research are provided.
Hartmut Hoehle, Eusebio Scornavacca, Sid Huff (2012)
The increased availability of electronically mediated self-service technologies in the banking

industry has changed the way banks service their customers. Banking customers today can
access, through a variety of different channels, sets of powerful tools which allow them to
conduct analyses, make decisions and enact financial transactions via working from their
home, office or elsewhere. Following practice, research into the adoption and use of
electronic banking channels has grown substantially over the last three decades. However,
banks seek further growth in consumer electronic banking. Prior research may not have
identified all the issues involved in adoption and use and may be limited in other ways.
Scholars face challenges researching this area due to fragmented findings and methods over
three decades of study. The aim of this paper, therefore, is to empirically determine the ‘state-
of-play’ of research in this field. Using a systematic and comprehensive review of 247 peer-
reviewed articles from key research outlets, this paper reveals theories and methods used to
study adoption of electronic banking channel at the individual level. Among other things, the
findings indicate domains and issues which have been well- or under-researched, conceptual
frameworks and principles which have been lightly- or substantially-drawn upon, as well as
research methods which have been heavily- or under-utilized. In order to advance research in
electronic banking, future researchers should consider diversifying their theoretical and
methodological approaches using the opportunities uncovered in our findings.
Aparna Mishra and Kamini Tandon (2011)
In their study on ―A Customer Centric Approach towards Retail Banking Services: A

Glimpse analyzed the customers’ perception on the retail banking services offered by namely
five private sector banks situated in Delhi and to study the major factors influencing their
choice of banks and its products.
Rashmi Chaudhary and Yasmin Janjhua (2011)
In their study on ―Customer Perceptions and Satisfaction towards Home Loan found that
the customers of the bank were highly satisfied with the home loan services in relation to its
services, transparency, time taken for loan approval, employee co-operation and query
handling, prima facie of some problems like procedural delays, lack of knowledge and red-
tapism. tain customers on a long term basis.
Naveen Kumar and V.K. Gangal (2011)
Examined customer satisfaction in new generation banks showing customers’ expectations

increasing rapidly in the banking industry of India. New customers looked the best services at
a reasonable price. The result revealed that, the majority of Indian banks were not very
diversified in terms of the product and services they offer. Further, it suggests that, in the
competitive banking industry, banks have to implement strategic focus customer satisfying
aspects for retaining as many customers as possible.
Uppal R.K. (2010)
Conducted studies on customer complaints and this research showed that excellent customer
service and customer satisfaction help to sustain business growth. Furthermore it showed that
customer complaints are continuously increasing in the public sector banks adversely
affecting customers’ satisfaction and performance. This research also suggested that
establishing a customer care center in all banks would help solve customer compliant on a
priority basis.
Kirti Dutta and Anil Dutta (2009)
In their study on ―Customer Expectations and Perceptions across the Indian Banking
Industry and the Resultant Financial Implications have studied the expectations and
perceptions of the consumers across the three banking sectors in India. It was found that in
the banking sector it is the foreign banks which are perceived to be offering better quality of
services followed by the private and then public banks and these perceptions are reflected in
the financial performance of the banks also.
Sumon Kumar Bhaumik, Ralitza Dimova(2004)
Private ownership of firms is often argued to lead to better firm performance than public
ownership. However, the theoretical literature and the empirical evidence indicate that
agency problems may affect the performance of privately owned firms. At the same time,
competition and hard budget constraints can induce state-owned firms to operate efficiently.
In India, banking sector reforms and deregulation were initiated in 1992, encouraging entry
and establishing a level playing field for all banks. Data for the financial years 1995– 1996
through 2000–2001 suggest that, by 1999–2000, ownership was no longer a significant
determinant of performance. Rather, competition induced public-sector banks to eliminate the
performance gap that existed between them and both domestic and foreign private-sector
banks.
TV Gopalakrishnan(2004)
The book deals with the problem of Non-Performing Advances (NPAs) in public sector
banks and its impact on the banks' books, banking and financial system of the economy.
Recognizing the inevitable and festering nature of the problem, the author has come out, inter
alia, with a statistical model as an innovative, simple and practical solution to contain NPA
formation to ensure a strong balance sheet for banks and improved image of the borrowers.
The author claims that the solution will prove to be a win-win situation for all stakeholders of
banks including the economy, and its constituents Government, shareholders, depositors,
borrowers, employees and others. Salient Features Changes brought about in banks under
Banking Sector Reforms. Emergence of NPAs in banks. Problem of NPAs: Its causes and
effects. Performance of Public sector banks on management of NPAs. Impact of NPAs on
the economy, banks balance sheets and profit and loss accounts. Suggestions to contain
NPAs from the angles of banks, borrowers, Government, Regulator and others. A Statistical
Model developed to contain formation of NPAs, strengthen banks' balance sheets and
develop an emotional rapport between banks and borrowers.
Carol Ann Northcott(2004)
The author reviews the theoretical and empirical literature to examine the traditional
perception that the following trade-off exists between economic efficiency and stability in the
banking system: a competitive banking system is more efficient and therefore important to
growth, but market power is necessary for stability in the banking system. That this trade-off
exists is not clear. Market power can have positive implications for efficiency, and the
potentially negative implications of competition on stability may be manageable through
prudential regulation. Neither extreme (perfect competition nor monopoly) is likely ideal
Rather, it may be optimal to facilitate an environment that promotes competitive behaviour
(contestability), thereby minimizing the potential costs of market power while realizing
benefits from any residual that remains. It can be very difficult to assess the contestability of
a banking market. Recent work suggests that the number of banks and the degree of
concentration are not, in themselves, sufficient indicators of contestability. Other factors play
a strong role, including regulatory policies that promote competition, a well-developed
financial system, the effects of branch networks, and the effect and uptake of technological
advancements.
Milind Sathye(2003)
The objective of this paper is to measure the productive efficiency of banks in a developing
country, that is, India. The measurement of efficiency is done using data envelopment
analysis. Two models have been constructed to show how efficiency scores vary with change
in inputs and outputs. The efficiency scores, for three groups of banks, that is, publicly
owned, privately owned and foreign owned, are measured. The study shows that the mean
efficiency score of Indian banks compares well with the world mean efficiency score and the
efficiency of private sector commercial banks as a group is, paradoxically lower than that of
public sector banks and foreign banks in India. The study recommends that the existing
policy of reducing non-performing assets and rationalization of staff and branches may be
continued to obtain efficiency gains and make the Indian banks internationally competitive
which is a declared objective of the Government of India.
Rajiv Rajan, Sarat C Dhal(2003)
Financial stability is considered as sine qua non of sustained and rapid economic progress.
Among various indicators of financial stability, banks’ non-performing loan assumes critical
importance since it reflects on the asset quality, credit risk and efficiency in the allocation of
resources to productive sectors. A common perspective is that the problem of banks’ non-
performing loans is ascribed to political, economic, social, technological, legal and
environmental
Mary Maureen Brown, Jeffrey L Brudney(2003)
In an attempt to reap the purported benefits that “knowledge workers” bring to organizations,
many police departments. have shifted to a community problem–oriented policing
philosophy. Rather than focusing on enforcement and incarceration, this philosophy is based
on the dissemination of information to promote a proactive, preventative approach to reduce
crime and disorder. In keeping with much of the contemporary literature on the “learning
organization” (sometimes called the “knowledge organization”), police departments hope to
deter crime through the knowledge benefits that derive from information and its associated
technologies.
With goals to stimulate productivity, performance, and effectiveness, police departments
across the country are employing information technology to turn police officers into problem
solvers and to leverage their intellectual capital to prompt crime and neighborhood
deterioration. Many public and private organizations are striving to change their operations
toward this same concept of the knowledge worker. Information technology is often touted as
a vehicle for capturing, tracking, sorting, and providing information to advance knowledge,
thus leading to improvements in service–delivery efforts. Based on an extensive study of
police departments that have attempted to implement a knowledge–worker paradigm
(supported by information technology initiatives), this research explores the feasibility,
effectiveness, and limitations of information and technology in promoting the learning
organization in the public sector.
Joao AC Santos(2001)
This paper reviews the theoretical literature on bank capital regulation and analyzes some of
the approaches to redesigning the 1988 Basel Accord on capital standards. The paper starts
with a review of the literature on the design of the financial system and the existence of
banks. It proceeds with a presentation of the market failures that justify banking regulation
and an analysis of the mechanisms that have been suggested to deal with these failures. The
paper then reviews the theoretical literature on bank capital regulation. This is followed by a
brief history of capital regulation since the 1988 Basel Capital Accord and a presentation of
both the alternative approaches .
3.2 RESEARCH METHODOLGY
Research
Research is a logical and systematic search for new and useful information on a particular
topic. Research is a process used to collected information and data for the purpose of making
business decision. The methodology may include publication research, interviews, surveys
and other research techniques and could include both present and historical information.
Research methodology
A research methodology can be defined as “arrangements of conditions for collection and
analysis for data in the manner that aims to combine relevance purpose in procedure"
Research Methodology is a way to find out the result of a given problem on a specific matter
or problem that is also referred as research problem. In Methodology, researcher uses
different criteria for solving/searching the given research problem. Different sources use
different types of method for solving the problem.
Research design
Various research design have been used such as survey, questionnaire for accuracy of the
data and to facilitate data analysis
Research method
This project is based on exploratory study as well descriptive study. It was an exploratory
study when the customer satisfaction level was studied to suggest new methods to improve
the services of banks in providing home loans it was descriptive study when detailed study
was made for comparison of disbursement of home loans by commercial banks.
Research Instrument
This work is carried out through self-administered and structured questionnaires. The
questions included were open ended and offered multiple choices.
Survey design
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of population was selected on the basis of
convenience.
3.3 SOURCES OF DATA
3.3.1 Primary Data
For the collection of primary data, researcher constructed and administered a pre- tested
structured questionnaire from the make the study more scientific, both types of information,
i.e. primary and borrowers and officers/ executives of the selected banks. Institutional
questionnaire was framed to collect the responses from bankers and the individual
questionnaire was constructed to collect the responses from the urban population who have
borrowed at least one of the loans mentioned earlier from the selected banks and their sister
concerns during the years 2006 to 2011. The bankers and borrowers were personally given
the questionnaire to be filled in the presence of the researcher. This reduced the chances of
questions being misinterpreted and left unanswered and it also enabled the researcher to get
first hand information. It was made sure that the questions were correctly understood by the
respondents. Wherever necessary, the questions were clearly explained to the respondents in
Hindi as well. In case the respondent left any question unanswered, it was quickly been
noticed and was requested by the researcher to fill the same. This ensured completeness of
the questionnaire. The primary data are those which are collected for the first time and
which is original in nature. The primary data is a data that is gathered for a specific research
in response to a particular problem through interviews, questionnaires or observations.
The primary data is collected from 6 Indian bank’s management members, Information
Security Officer (IT heads), and employees by a structured questionnaire. The researcher
has also interviewed the Heads of the IT department of the respective Indian banks.
3.3.2 Secondary Data
Secondary data were collected from various websites, publications including books, research
journals, magazines, newspapers and periodicals of government and reports of Reserve Bank
of India. For this purpose, various libraries in the country were visited so as to collect the
relevant information. The secondary data for this study was obtained from published
documents and literature relevant to the study. The secondary data is obtained through
various kinds of documents such as research reports, RBI annual reports, books and
articles, research papers from online journals and Government regulation for core banking
and also from web information. From the analysis of annual reports standard assets, sub
standard assets, doubtful assets, loss assets, net advances and net NPA amounts of the sample
banks covered under study for the period 2008 to 2018 have been calculated and analyzed
for the purpose of study.
TOOLS FOR DATA COLLECTION
The data collection is an important aspect of any type of research study. The inaccurate data
collection can impact the results of a study and ultimately lead to invalid results.
Research data are categorized as primary and secondary data. In this study, the primary data
collected by the researcher using data collection techniques such as survey, interviews and
observations. In order to efficiently use the survey method a questionnaire were developed.
Survey
The questionnaire is concise, pre-planned set of questions, designed to yield specific

information to meet a particular need of research information about a related topic. This
method of data collection is used because expense and time involved in interview are
reduced by using questionnaires. Each respondent receives the same set of questions
phrased in exactly the same way. The questionnaires therefore, yield data more comparable
than information obtained through an interview. Two types of questionnaire open ended
and closed- ended were designed for the collection of primary data. Three different types
of questionnaires set were prepared for three different types of respondents (IT heads, the
top level managements and end users/employees) to yield the necessary information. All the
questions are of objective type and of type dichotomous questions (yes/no type), rating scale
questions, five point liker questions and also three point liker questions. During the visit some
of the respondents were unable to fill the questionnaire because of their busy schedule so
the questionnaires were also forwarded through e-mail.
Top level management
This set of questionnaire was adopted by the researcher to help to answer the question
related to information security policy documentation and training and awareness of
staffs/employees, budget provision, general background information of UCBs, objectives
behind implementation of core banking solution, and overall information security level in
CORE banking environment.
IT head
This set of questionnaire is designed to assess the security controls are in place in CBS
environment. The researcher organized a questionnaire based on different 16 domains of
information security. This questionnaire includes general information of Core Banking
Solution (CBS), Modules of Core Banking Solution(CBS), Information security policy
and procedure, Physical Access Control and Environmental Security, Asset Management,
Human Resources Security, Logical Access Control System, Network Security, Operating
System Access Control, Cryptographic Controls, Training and Awareness Program, Data
Backup, Information System Security Technology, Business Continuity Management,
ATM Security and Internet banking Security. Each security domain represents a subset
of entire questionnaire.
End user assessment
The third set of questionnaire was developed to assess the information security awareness and
training imparted by the top management of the banks regarding information security in
CORE banking environment.
Interview
In order to gather in-depth information about perceptions, insights, attitudes, experiences

which could not be effectively covered through questionnaire an interview technique was
used. This method was also adopted by the researcher to clarify ambiguities and incomplete
answers follow up.
Observation
The observation method was adopted by the researcher to observe the infrastructure facility,
physical access control system, information security technologies, data center security
measures in place in CORE banking environment. This facilitated the researcher a better
understanding of what is happening in the background. It helped the researcher to understand
how things are organized and prioritized, how roles and responsibility of people are defined.
Sampling method
Market research wouldn’t be possible without sampling, as it’s impossible to access every
customers. Simple Random Sampling method has been used for the purpose of the study.
This method is based on the personal judgement. Under this method a desired number of
sample units are selected deliberately depending upon the chosen home loan customers. Only
important items representing the true characteristics of the population are included in sample.
Sample size
In this study, researcher has taken 110 respondents which is used to analyse and
interpretation of customer perception on home loan in Indian bank. The actual customer
were contacted on the basis of random sampling.
Tools for data analysis
Data analysis tools help researchers make sense of the data collected. It enables them to
report results and make interpretations. In this study the collected data has been analyzed
using Percentage analysis.
DATA ANALYSIS AND INTERPRETATION
The data after collection has to be processed and analyzed in accordance with the outline lay
down for the purpose of the time developing the research plan
Data analysis
Data analysis is a process of inspecting, cleansing, transforming and modeling data with the
goal of discovering useful information, informing conclusion and supporting decision-
making. The purpose of analysis is to take existing data collected from either a single source
or multiple sources and use it to arrive at the optimal decision. An essential component of
ensuring data integrity is the accurate and appropriate analysis of research findings.
In this study, the collected are analysed by laying the collected data in the form of table with
their respective title along with the percentage analysis for the respective title. Each table is
followed with their respective charts for presentation of the analysis.
Data interpretation
Data interpretation refers to the implementation of processes through which data is reviewed
for the purpose of arriving at an informed conclusion. The interpretation of data assigns a
meaning to the information analyzed and determines its signification and implications.
In this study, Pie charts have been used for the pictorial representation of the data collected
for the purpose of the study.
TABLE 4.1
GENDER WISE CLASSIFICATION OF RESPONDENTS
S.NO GENDER NO.OF.RESPONDENTS PERCENTAGE
1 Male 62 56.4
2 Female 48 43.6
3 Total 110 100
CHART 4.1
GENDER WISE CLASSIFICATION OF RESPONDENTS
INTERPRETATION
The above table 4.1 shows the results of gender of respondents. Out of 110 total
respondents, 56.4% of respondents are male and 43.6% of respondents are female.
TABLE 4.2
AGE WISE CLASSIFICATION OF RESPONDENTS
S.NO AGE NO.OF.RESPONDENTS PERCENTAGE
1 Below 30 41 37.3
2 30-40 35 31.8
3 40-50 24 21.8
4 Above 50 10 9.1
5 Total 110 100
CHART 4.2
AGE WISE CLASSIFICATION OF RESPONDENTS
INTERPRETATION
The above table 4.2 gives the results of respondents age. 37.3% of respondents aged
below 30, 31.8% respondents aged between 30-40, 21.8% of respondents aged between 40-
50, and 9.1% of respondents are aged above 50.
TABLE 4.3
ANNUAL INCOME OF RESPONDENTS
S.NO ANNUAL INCOME NO.OF.RESPONDENTS PERCENTAGE
1 Below 2 lakhs 27 24.5
2 2-4 lakhs 32 29.1
3 4-6 lakhs 33 30
4 Above 6 lakhs 18 16.4
5 Total 110 100
CHART 4.3
ANNUAL INCOME OF RESPONDENTS
INTERPRETATION
The above table 4.3 shows the annual income of respondents. 24.5% of respondents are
below 2 lakhs, 29.1% of respondents are between 2-4 lakhs, 30% of respondents are between
4-6 lakhs, 16.4% of respondents are above 6 lakhs.
TABLE 4.4
CUSTOMER SATISFACTION OF INDIAN BANK HOME LOAN
S.NO OPINION NO.OF.RESPONDENTS PERCENTAGE
1 Yes 75 68.2
2 No 35 31.8
3 Total 110 100
CHART 4.4
CUSTOMER SATISFACTION OF INDIAN BANK HOME LOAN
INTERPRETATION
The above table 4.4 gives a results on customer opinion on Indian bank home loan.
68.2% of respondents are satisfied, and 31.8% of respondents are not satisfied.
TABLE 4.5
OPINION OF RESPONDENTS ABOUT SANCTIONING PERIOD
S.NO DURATION NO.OF.RESPONDENTS PERCENTAGE
1 0-1 Month 44 40
2 0-2 Months 40 36.4
3 0-3 Months 26 23.6
4 Total 110 100
CHART 4.5
INTERPRETATION
The above table shows the duration taken by bank to sanction loan. 40% of respondents
loan where sanctioned in 0-1 month, 36.4% of respondents loan where sanctioned in 0-2
months, 23.6% of respondents loan where sanctioned in 0-3 months
TABLE 4.6
S.NO PERIOD NO.OF.RESPONDENTS PERCENTAGE
1 Short period 46 41.8
2 Long period 36 32.7
3 Very long period 28 25.5
4 Total 110 100
CHART 4.6
INTERPRETATION
The above table shows the period of time taken by bank for sanctioning loan. 41.8% of
respondents loans took a short period of time, 32.7% of respondents loans took long period of
time, and 25.5% of respondents loan took very long period of time in sanctioning loan.
TABLE 4.7
DOCUMENTATION PROCEDURE
S.NO DOCUMENTATION NO.OF.RESPONDENTS PERCENTAGE
1 Excellent 34 30.9
2 Very good 38 34.5
3 Good 30 27.3
4 Poor 8 7.3
5 Total 110 100
CHART 4.7
DOCUMENTATION PROCEDURE
INTERPRETATION
The above table 4.7 shows that satisfaction of respondents in documentation procedure
for home loan. 30.9% of respondents says excellent, 34.5% of respondents says very good,
27.3% of respondents says good, and 7.3% of respondents says poor in documentation.
TABLE 4.8
OPINION OF RESPONDENTS ON PROCESSING OF SANCTIONING

HOME LOAN
1 Highly satisfied 39 35.5
2 Satisfied 27 24.5
3 Neutral 36 32.7
4 Dissatisfied 8 7.3
5 Total 110 100
CHART 4.8
OPINION OF RESPONDENTS ON PROCESSING OF SANCTIONING
HOME LOAN
INTERPRETATION
The above table 4.8 gives results in respondents opinion on process of home loan. 35.5%
of respondents are highly satisfied, 24.5% of respondents are satisfied, 32.7% of respondents
are in both satisfied and dissatisfied, 7.3% of respondents are not satisfied in the process of
home loan.
TABLE 4.9
REASON FOR PREFERRING INDIAN BANK
S.NO REASON NO.OF.RESPONDENTS PERCENTAGE
1 Fast processing 39 35.5
2 Interest rate 50 45.5
3 Brand & Image 12 10.9
4 Others 9 8.2
5 Total 110 100
CHART 4.9
REASON FOR PREFERRING INDIAN BANK
INTERPRETATION
The above table 4.9 shows the different reasons of respondents in preferring Indian
bank for home loan. 35.5% of respondents prefer for fast processing, 45.5% of respondents
prefer for interest rate, 10.9% of respondents prefer for brand & image of bank, 8.2% of
respondents has other reasons for preferring Indian bank.
TABLE 4.10
SATISFACTION OF RESPONDENTS ON EMI RATE
1 Poor 17 15.5
2 Good 53 48.2
3 Better 33 30
4 Best 7 6.4
5 Total 110 100
CHART 4.10
INTERPRETATION
The above table 4.10 gives the results in respondents satisfaction on interest rate
charged by Indian bank. 15.5% of respondents says poor, 48.2% of respondents says good,
30% of respondents says better, 6.4% of respondents says best rate of interest charged by
Indian bank.
TABLE 4.11
1 Poor 14 12.7
2 Good 53 48.2
3 Better 35 31.8
4 Best 8 7.3
5 Total 110 100
CHART 4.11
INTERPRETATION
The above table 4.11 gives the results respondents satisfaction on EMI of Indian
bank.12.7% of respondents says poor, 48.2% of respondents says good, 31.8% of
respondents says better, and 7.3% of respondents says best rate of EMI in Indian bank.
TABLE 4.12
RELATIONSHIP BETWEEN BANK AND CUSTOMER
1 Poor 17 15.5
2 Fair 29 26.4
3 Good 43 39.1
4 Very good 21 19.1
5 Total 110 100
CHART 4.12
RELATIONSHIP BETWEEN BANK AND CUSTOMER
INTERPRETATION
The above table 4.12 shows the relationships between Indian bank and customers.
15.5% of respondents have a poor relationship, 26.4% of respondents have a fair relationship,
39.1% of respondents have a good relationship, and 19.1% of respondents have a very good
relationship with Indian bank.
TABLE 4.13
SOURCE OF INFORMATION
S.NO SOURCE NO.OF.RESPONDENTS PERCENTAGE
1 Bank 52 46.4
2 Neighbors 28 25.5
3 Family & Friends 21 19.1
4 Advertisement 10 9.1
5 Total 110 100
CHART 4.13
SOURCE OF INFORMATION
INTERPRETATION
The above table 4.13 gives results on respondents source of information on home loan.
46.4% of respondents gets source by banks, 25.5% of respondents gets source by neighbors,
19.1% of respondents gets source by their family & friends, and 9.1% of respondents gets
source from advertisement of home loan.
TABLE 4.14
OVERALL SATISFACTION OF RESPONDENTS ON INDIAN BANK
1 Yes 33 30
2 No 43 39.1
3 Maybe 34 30.9
4 Total 110 100
CHART 4.14
INTERPRETATION
The above table 4.14 shows the opinion of respondents difficulties on getting home
loan. 30% of respondents says yes, 39.1% of respondents says no, 30.9% respondents says
maybe they felt difficulty in getting home loan.
TABLE 4.15
S.NO SATISFACTION NO.OF.RESPONDENTS PERCENTAGE
1 Highly satisfied 46 41.8
2 Satisfied 39 35.5
3 Dissatisfied 18 16.4
4 Very dissatisfied 7 6.4
5 Total 110 100
CHART 4.15
INTERPRETATION
The above table 4.15 shows the overall satisfaction of respondents on Indian bank.
41.8% of respondents are highly satisfied, 35.5% of respondents are satisfied, 16.4% of
respondents are dissatisfied, and 6.4% of respondents are very dissatisfied with Indian bank.
TABLE 4.16
OVERALL SATISFACTION OF RESPONDENTS ON HOME LOAN IN

INDIAN BANK
1 Highly satisfied 44 40
2 Satisfied 48 43.6
3 Dissatisfied 11 10
4 Very dissatisfied 7 6.4
5 Total 110 100
CHART 4.16
OVERALL SATISFACTION OF RESPONDENTS ON HOME LOAN IN
INDIAN BANK
INTERPRETATION
The above table 4.16 gives the overall satisfaction of respondents on home loan in
Indian bank. 40% of respondents are highly satisfied, 43.6% of respondents are satisfied,
10% of respondents are dissatisfied, and 6.4% of respondents are very dissatisfied on home
loan in Indian bank.
FINDINGS, SUGGESTIONS AND CONCLUSIONS
5.1 FINDINGS
 There is a majority of 56.4% of male respondents.
 Amongst which 37.3% are below 30 years old.
 30% of respondents earn 4-6 lakhs per annum.
 Customer satisfaction towards Indian bank home loan is 68.2%.
 34.5 % of the respondents feel that the documentation procedure of Indian bank is
standardized.
 35.5% of respondents are highly satisfied on the process of sanctioning home loan.
 Many respondents prefer Indian bank because of its reasonable interest rate.
 48.2 % of the respondents have rated the satisfaction on EMI rate as good.
 There is a fair relationship between Bank and the Customers.
 Majority of the respondents seeks sources of information on home loan through
Indian bank.
 Almost 39.1% of the respondents find that there are known difficulties to get home
loan.
 About 41.8% of the respondents are highly satisfied on Indian bank.
 43.6% of the respondents are satisfied on home loan of Indian bank.
5.2 SUGGESTIONS
 Most of the customers felt that opening of an account is very difficult in the Bank . So
the management should take care on new customers as well as on old customers.
 In order to avoid the problem of seeking for an introducer, the bank can allow the
public to open an account by referring their identity proof like Aadhar card, voters ID, PAN
card, driving license etc.
 Since 7.3% of the customers are dissatisfied with the processing of Indian bank, in
order to over commit more employees can recruited.
 Relationship between the customer can be improved by providing more facilities to
the customers.
 EMI rates can be improved.
 An awareness should be created about Indian bank and its home loan to new
customers.
5.3 CONCLUSIONS
Banks are accessible even to a common man and their activities are extended to areas
hitherto untouched. Apart from their traditional business oriented functions, they have come
out to fulfill national responsibilities also. The recent developments in banking technology in
the hinterlands of the country have provided a perfect launch pad for extending banking
outposts to remote locations without having to open bank branches. The services of Indian
Bank have positive impact on the customer satisfaction. Some services have very high
customer satisfaction whereas some have the lower customer satisfaction level which is the
major concern area for the bank and there is a need to pay more attention, therefore the bank
needs to keep those factors in consideration while designing the strategies to enhance the
customer satisfaction.
BIBILIOGRAPHY
REFERENCE BOOK
 Basics of Banking - published by Indian institute of Banking and finance
 Prof.I.V. Trivedi – Indian banking system,
 N.S. Toor – Handbook of Banking information.
 Sundharam & varshney – Banking theory law and practices, Sulthan chand & sons
publications,New Delhi.
 Nayak N – Emerging scenario of Indian banking sector.
 R.K. Uppal – Mordern banking in India.
 James stuart – home equity loan, Atlantic publishers & distributors,New Delhi.
 P. Prajwala Devi – Study on home loans, Sanjay gupta, publications,Mumbai.
REFERENCE WEBSITE
 Google
 Indian bank https://www.indianbanking.com
 en.wikipedia.org/wiki/indian bank
 www.bankingonly.com
 www.allbankingsolution.com
 www.banknetindia.com
 www.indiahomeloan.co.in
QUESTIONARIES
1.Gender
a)Male
b)Female
2.Age
a) Below 30
b) 30-40
c) 40-50
d) Above 50
3. Which income group do you belong to (per annum)?
a) Below 2 lakhs
b) 2-4 lakhs
c) 4-6 lakhs
d) Above 6 lakhs
4. Are you satisfied with Indian bank home loan?
a) Yes
b) No
5. What is the duration taken by Indian bank to sanction a home loan?
a) 0-1 months
b) 0-2 months
c) 0-3 months
6. What do you think about the duration taken by bank in sanctioning loan?
a) Short period
b) Long period
c) Very long period

7. How do you rate the documentation procedure of Indian bank ?
a) Excellent
b) Very good
c) Good
d) Poor
8. How much are you satisfied in the processing of sanctioning home loan by Indian bank?
a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
9. Reason for preferring Indian bank
a) Fast processing
b) Interest rate
c) Brand & Image
d) Others
10. How do you rate the interest rate charged by Indian bank?
a) Poor
b) Good
c) Better
d) Best
11 .How do you rate the EMI of Indian bank?
a) Poor
b) Good
c) Better
d) Best
12. How will you rate the relationship between Indian bank and Customer?
a) Poor
b) Fair
c) Good
d) Very good
13. How do you get sources of information on home loan of Indian bank?
a) Bank
b) Neighbours
c) Family & Friends
d) Advertisement
14. Overall, did you feel any difficulty in getting home loan in Indian bank?
a) Yes
b) No
c) May be
15. What is your satisfaction rate towards Indian bank?
a) Highly satisfied
b) Satisfied
c) Dissatisfied
d) Very dissatisfied
16. What is your overall satisfaction rate towards Indian bank home loan?
a) Highly satisfied
b) Satisfied
c) Dissatisfied
d) Very dissatisfied

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1.

ECONOMIC DEVELOPMENT THROUGH BANK

 Foreign exchange banks

Foreign Exchange Banks

MAJOR SERIVICES OF BANK

Banks typically offer a variety of services to assist individuals in managing their

 Debit & credit cards

 Debit and credit cards

 Mobile check deposit

 Text alerts and E-statements

 Home equity loans

 Home equity lines of credit

Fixed deposit account

 Home safe account or money box scheme

1.3 OBJECTIVES OF STUDY

• To know the awareness of the customers on home loan.

• To study the sources of information to customers on loans in bank.

• To know the difficulties of the customers in obtaining home loan.

• To know customer’s satisfaction level while dealing with bank.

• Suggest strategies to increase customer satisfaction of Indian bank and to

1.4 SCOPE OF STUDY

1.6 LIMITATIONS OF STUDY

 Its undertaken for academic purposes only

 Some respondents are not interested in giving information

 The main limitation of the study is time constraint

 Lack of co-operation among customer.

1.7 CHAPTERISATION SCHEME

• The present study has been divided into five chapters.

• The second chapter entitled "Profile of Indian bank".

• The fourth chapter deals with Data analysis and Interpretation.

• The fifth chapter deals with finding, suggestions and conclusion.

Founder S. Rm. M. Ramaswami Chettiar

Founded 15 August 1907; 112 years ago

Owner Government of India

Headquarters Chennai, India

Products Consumer Banking

Finance and Insurance

Finance and insurance

2.2 INDIAN BANK HOME LOAN

Age 18 years to 70 years

Type of Employment Salaried or self-employed

Nationality Indian or NRI

Indian Bank Home Loan Interest Rate 2019

Loan 60 times of Gross Monthly Income, Rs. 20,000 as Min.

 Processing fee is at a rate of 0.229% on loan amount with a maximum of Rs.20381/-

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Neeli Prameela, B Abdul Azeem, KV Geetha Devi (2012)

The increased availability of electronically mediated self-service technologies in the banking

Aparna Mishra and Kamini Tandon (2011)

In their study on ―A Customer Centric Approach towards Retail Banking Services: A

Rashmi Chaudhary and Yasmin Janjhua (2011)

Examined customer satisfaction in new generation banks showing customers’ expectations

Uppal R.K. (2010)

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Sumon Kumar Bhaumik, Ralitza Dimova(2004)

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The questionnaire is concise, pre-planned set of questions, designed to yield specific