Home is a place where we relax after coming back from our day’s tiring work, it is the place where we can give time to our family and spend beautiful moments with them. After years of thinking, anticipating, saving and research, we finally decide to build our dream house. At the time, finance is the major criteria which pulls back everyone from moving towards the cherished goal.
To acquire a home which can be christened as our ‘Own House’ is a life-time decision and has to be made with efficient planning and requires huge finance. Our Dream Home is not far away with a Home Loan which will fulfill our dream into a reality. Home Loan is a Secured Loan offered by a bank against the security of a house/property which could be a personal property or a commercial one. It is a loan collected by a borrower from a bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. If the borrower has failed to pay back the loan, the banker can retrieve the finance by selling the property.
History of Home Loan
For many years, the only way to obtain money to purchase a home was to apply for a conventional home loan. This type of loan was obtained through a bank, credit union or other private, non-government-affiliated financial institution. In 1938, the Federal National Mortgage Association, better known as "Fannie Mae," was created and established as a federal agency by the President Mr. Franklin Roosevelt as a part of his New Deal. This made it possible, even during those days, when most people had little income were still be able to afford a home.
In 1970, the Federal Home Loan Mortgage Corporation, known as "Freddie Mac," was created to lessen the "monopolization" of home lending that Fannie Mae enjoyed. Both Fannie Mae and Freddie Mac, once considered as "government" auspices, are private establishments now.
World War II came along, and hundreds of citizens went to war. When it ended, they returned home to pick up their lives where they had left off, or to start a new life. These people needed places to live, so the Serviceman’s Readjustment Act of 1944, Public Law 78-346, was enacted. This made it possible for veterans to borrow money for the purchase or building of a house.
Several major changes in the Act have been made in the years since 1944, allowing veterans of subsequent wars, such as Korea, Vietnam and, most recently, the Gulf wars, to have the same advantages in obtaining home loans. All home loans—conventional, VA, Fannie Mae, and Freddie Mac–accomplished the same goal: they allowed people to become homeowners. The Veteran’s Administration, Fannie Mae and Freddie Mac, however, provided a level of protection for the loans and those involved with them that other financial institutions might not necessarily have.
Having different types of home loans to choose from allow more people to be able to own their own home. Depending on the terms and conditions, it may be easier to obtain a loan from one entity than from another. As long as there are financial institutions that will make home loans, there will be the opportunity for people to own a home. There will probably be changes, especially in such areas as interest rates, simply because the housing market changes at different times, depending on the national economy.
Real estate is currently one of the fastest growing sectors in India. Banking sector is also registering profitable business since the last few decades, with the growth of real estate. Majority of the banks are also offering easy home loans at attractive rates to their customers. Now that getting a home loan is so easy, it seems everyone can fulfill his / her long cherished dreams of purchasing lands, building their houses and expanding their homes.
A home loan, or mortgage, is a secured loan that borrowers obtain in order to purchase a home. As a home is the largest purchase many individuals will ever make, most borrowers prefer home loans. Most loans paid for in a timely manner result in a positive notation on credit reports, meaning that borrowers may be able to qualify for larger loans at better interest rates after having successfully made loan payments.
Different types of home loans are tailored to suit the heterogeneous requirements of the customers. The description of some of the most common types of home loans is given below.
Types of Home Loans
‘ Home Purchase Loans: This is the basic home loan for the purchase of a new home.
‘ Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased.
‘ Home Construction Loan: This loan is available for the construction of a new home.
‘ Home Extension Loan: This is given for expanding or extending an existing home. For instance, a customer may apply for a loan for the addition of an extra room in his/her home and for similar cases.
‘ Home Conversion Loan: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
‘ Land Purchase Loans: This loan is available for purchase of land for both construction and investment purposes.
‘ Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home.
‘ Balance Transfer Loans: Balance transfer loans help to pay off an existing home loan and avail the option of a loan with a lower rate of interest.
‘ Refinance Loans: This loan helps to pay off the debt that one has incurred from private sources such as relatives and friends, for the purchase of his/her present home.
‘ Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.
Features of Home Loan
Home loans are available on fixed rate of interest as well as floating rate of interest. In fixed rate loans, the interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The plus point of fixed rate loans is that they remain steady over the years. However, the flip side is that the lenders charge a higher rate of interest for fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the funds they are lending.
In floating rate loans, the rate of interest changes according to a set formula as interest rates fluctuate in the open market. The plus point is that lenders charge a lower rate for such loans because the borrower takes the interest-rate risk. The downside is that interest rates may rise anytime and one can end up paying more than fixed rate loans. Hence the type of interest one opts for will entirely depend on one’s personal preferences.
General Information about Home Loan
‘ The loan amount is based on the repayment capacity of the customer. However, it cannot be more than 85% of the cost of the property (including the cost of the land).
‘ The minimum term of home loan is 5 years, while the maximum duration for the loan is 20 years, subject to the retirement age of the applicant.
‘ Home Loans can be applied either individually or jointly, with spouse, children (son or daughter) and even earning parents (father or mother), but if staying with the applicant and having regular income.
‘ Home loan eligibility can be enhanced by repaying the outstanding loans, clubbing the income, increasing the home loan tenure and opting for a step-up loan.
‘ The amount of loan sanctioned varies from bank to bank. Generally, the maximum loan amount granted for the applicant would be 80% to 85% of the cost of the home.
‘ The eligibility for the applicant depends upon his/her capacity of repayment. It stiffens with the increase in home loan rates.
‘ Processing charge, pre-payment penalties, commitment fees and miscellaneous costs accompany a home loan, in many of the cases.
‘ Providing additional security, like bonds, fixed deposits and LIC policies, or having a guarantor can enhance the applicant’s eligibility for a home loan.
During the recent span of years, it had been observed that the demand for home loans have been increasing drastically. While purchasing a house, the person has to invest a very huge amount. Some people face trouble, paying out the whole finance together for the house, while some can’t even afford to invest money for the house of their choice. Home loans, this way has turned out to be a boon for people, who want to have a home.
While going for a home loan, the individuals should take care of the other various aspects relating to the home loan. An individual must first decide the principle amount that he is going to borrow as a home loan. Otherwise the person may end up buying a loan with a higher principle amount and then paying more interest for the amount that he has borrowed unnecessarily. The second aspect that the borrower should consider is the interest factor associated with every home loan. The borrowers motto should be to receive a loan which carries the lowest interest rate. For this, the borrower should make a complete research of the prevailing interest rates in the markets so that he does not get cheated by the home loan lenders.
Factors to be Considered before Applying Home Loan
Virtually every young family in India aspires to own a home. A Home Loan is a great way to part finance the dream home that an individual always wanted to own. Here are the top 6 factors to keep in mind before applying for a home loan:
1) Get one’s own credit report
The applicant has to apply online at http://www.cibil.com/accesscredit.html and follow the instructions given there to get a copy of his/her own credit report. Check the credit report thoroughly to spot errors. If required, our advisory services on CIBIL Report can be used to get any errors corrected. Remember any errors in the credit report can reduce the chances of getting a good home loan offer. This report is likely to be accessed by the bank’s credit department after the application for the home loan is obtained.
2) Finalise property first and apply to the lender
Lenders reserve their best rates for immediate disbursement customers and hence customers who have finalised property get the best possible home loan offers. Also if they have any issues with the property, it will get highlighted before one incurs too much effort and costs. Some lenders may not be comfortable with a person buying a plot and self constructing on it. Some lenders will not fund under construction property unless the developer is pre-approved with them. A lot of lenders can have issues if the property being bought is more than 15-20 years old.
3) Be prepared to lose out on the processing fee
Most companies charge a non refundable processing fee with the home loan application which will not be refunded even if one decides not to use the loan sanction. The lenders incur costs for sanctioning the loan and hence in most cases this is non refundable. If anybody is promising that the processing fee cheque will not be put in without the drawer’s prior approval or that the processing fee will be refunded even if the sanction is not accepted, then there are chances that he is lying.
4) Fixed rates are rarely fixed
The fixed costs quoted are normally fixed only for a period of 12 to 60 months and can be revised thereafter. Understand the rates chargeable to an individual by seeing our detailed home loan comparison table and then decide.
5) Make a provision for higher down payment
Lenders carry out an independent valuation of the property being bought and they will fund around 80-85% of the valuation amount as determined by their valuers. These independent valuers normally are conservative and value the property (especially property bought on resale) much lower than what one might actually be paying for it. While an individual can ask for a second valuation (at one’s own cost off course) one should be prepared to shell out the difference between the actual price being paid and the valuation made by the bank over and above the 15-20% down payment.
6) Let the Family inherit the home not the home loan
It is necessary to review the insurance requirement when taking a home loan. If the applicant is underinsured’ then term policy can be bought for the entire amount of loan so that the family can pay off the loan in the event of the borrowers death during the loan tenure. Also one can consider buying a critical illness rider that will pay off the loan in the event of the borrower suffering from critical illnesses such as Kidney failure, paralytic stroke, cancer, etc
Most common Home Loan problems faced by borrowers in India
One of the most common issues faced by existing home loan borrowers is the discrepancy in interest rates paid by them vis-a-vis a new borrower. While this is a valid complaint, let’s first see what causes this discrepancy. Interest rates on home loans are usually linked to the benchmark rate of the bank (be it the Prime Lending Rate – PLR or the more recently introduced Base Rate, as the case may be). From this benchmark rate, a fixed rate is either deducted (in the case of a PLR) or marked up (in the case of a Base Rate) to arrive at the floating rate on the home loan. Any changes in the benchmark rate will thus automatically result in a change in the interest rate on the home loan as well.
In recent times, in view of the increasing incidence of customers switching banks to avail better rates, the existing borrowers are being offered an option to change to new rates in the same bank by paying a switch fee or a conversion fee. This can be 0.5% to 1% of the outstanding loan amount. This is a good way of availing interest rates offered to new customers. However, this scheme is not actively pushed by banks, and not all lenders offer this too.
In such a situation, most existing borrowers resort to porting their home loans to banks which offer lower interest rates. This has been encouraged by RBI by removing the prepayment penalties on floating rate loans. However, it is important for customers to read the fine print before taking this step, as there may be many unanticipated costs to be borne. Processing fees, stamp duty, notarization charges, franking charges and insurance premium are some of the likely costs which a customer needs to bear. This can easily work out to be 0.5% to 0.75% of the loan amount. Add to this the requirement of submitting all documentation again to the new bank. It is therefore important to understand the merits of switching a home loan, and try to use the option of staying with the old bank using the switching fee option, wherever possible.
Getting a home loan is a lengthy procedure. However simple it might look in the bank’s advertisement, the fact remains that there are a lot of hiccups in the entire process. Here are the 7 most common problems faced by home loan borrowers in India. Each problem is discussed in detail and appropriate remedies are mentioned along with it.
1. Rejection at the first stage
Strange but true, many of the home loan applications do not pass even the first test. They are out rightly rejected due to incompatibility between the borrower’s qualifications and lenders requirements. It could be the age criteria, income criteria, proper documents not being submitted, the bank not being able to verify the details properly, not passing the field investigations conducted by the bank and many more. The best way to avoid being rejected in this way is to check the eligibility requirements of lending banks carefully and apply only to that bank which matches one’s profile. Keeping proper documents ready and providing accurate, verifiable details to the banks will ensure that an individual sails through the preliminary verification process.
2. Processing fee not refunded
With every application form for home loans, banks require about 0.25% to 1% of the loan amount to be submitted as the processing fees. This processing fees is generally NOT REFUNDABLE. This is the cost of applying for home loans. If in any case, the bank states that it will refund the processing fees in case the bank doesn’t sanction the home loan, it is better to get any such declaration in writing and make sure that the clause is enforceable. A verbal statement by bank authorities won’t be of any use unless it is properly and legally documented.
3. Desired loan not sanctioned
The loan amount sanctioned is based mostly on repayment capacity of the borrower. Many things come into picture, when the bank decides how much home loan a person can get. The monthly income, financial history, other unpaid loans with the borrower, past repayment record, credit card usage history if any, bounced checks, average balance with the banks, continuity in present employment, total years in employment, nature of employment etc. These factors, clubbed together help the bank to decide whether it will be able to recover its money satisfactorily or not. If an application gets rejected due to any such criteria, the applicant can increase the eligibility by clubbing together the spouse’s, father’s, son’s, relative’s income and make them a co-borrower. In addition to it, if one has sufficient funds in NSC’s, provident funds, LIC policies etc., the same can be kept as collateral and ask the bank to finance the home loan.
4. The interest rate dilemma
Whether to go for a fixed rate or floating rate interest for home loans is a dilemma which almost every home loan borrower faces. Even after deciding on a particular loan regime, the home loan terms and condition fine prints can create havoc with the interest rates. For example even if a borrower has opted for fixed rate home loan and the bank has promised him a rate which he feels is good, the catch is in the fine prints which authorizes the bank to vary this fixed rate every 2 years, things can go worse for the fixed rate borrower. Similarly if the bank does not pass the benefit of lowered interest rates in floating interest rate regime, it will be of a little value. Avoiding such a situation essentially means that one has to study the terms and conditions of home loan carefully and clearly ask the bank about such things. In case of floating interest rates the facts can be verified by checking how the interest rates on home loan dropped during low interest periods.
5. Difference in property valuation
The bank has its own experts for legal, technical and financial appraisal of the property in question. It evaluates the property on its own established parameters and assigns a value to it. This value can be significantly lower than the price one has quoted for the property. Thus the bank will only lend up to the amount it valued. This can cause a significant gap between the loan amount required and what the bank is willing to lend. To avoid this situation the borrower can get the property valued before applying for home loan from a bank approved valuator.
6. The down payment
Banks require the borrower to fund at least 10% to 20% (varying from bank to bank) of the entire loan amount as the down payment for the home loan. This amount has to be deposited before the disbursal of the home loan. In the absence of such down payment the bank will refuse home loan to the borrower. For a home loan of 10 lakhs this could mean anything between 1 to 2 lakhs. This amount must be readily available with the borrower. In a scenario where the valuation of the property by bank is considerably lower than the market price of the property, the balance will also have to be paid by the borrower. This effectively increases the down payment. The obvious remedy to this tricky situation is to get the property valued beforehand and have the down payment ready. Some banks also allow NSC’s, provident funds, LIC policies etc for down payment. It is generally a good procedure to check the down payment requirement of various banks and choose the one which requires the lowest amount to be deposited initially or fits one’s budget well.
7. Title deeds and NOC Documentation Problems
The title deeds and NOC documents have to be furnished in the bank’s format. Borrowers, who do not provide such documents in proper format, will ruin the entire exercise and won’t get any home loan. To avoid falling into such uncomfortable situation, enquire about all the documents required by banks beforehand and take necessary steps to get them ready within the stipulated time frame.
The above mentioned problems are very common, but can be easily avoided if the borrower follows proper procedure, prepares adequately before applying and takes care of correct documentation.
1.2 Need for the Study
Since the Housing Loan is an important factor influencing Indian Economy, a study has been done to know more about the present trend of the housing loan schemes and customer satisfaction towards HDFC Bank. This study aims to find out the satisfaction level of the existing housing loan customers of HDFC bank by analyzing various factors influencing satisfaction level.
This study is mainly conducted to observe the factors influencing the satisfaction level of housing loan customers of HDFC bank in Salem district. The study also scrutinizes and finds out the various factors which are influencing the satisfaction level of customers while borrowing a housing loan from the bank. ie., preliminary procedures, hidden charges, processing fees, interest rates, etc. Particularly speaking, the housing finance market meet certain specific problems in terms of variable rates of interest prevailing in the market, lack of transparency in transactions, recovery procedure, collection of EMI amount etc. Now, the borrowers feel dissatisfaction towards determination of number of EMI’s and penalty imposed on the delay payment (even for one day). These problems make the market more reactive. This peculiar environment demands this study for deep analysis.
1.3 Statement of the Problem
The study is mainly conducted to observe the factors influencing the satisfaction level of housing loan customers of HDFC bank in Salem district. The study also scrutinizes and find out the various factors which are influencing the satisfaction level of customers while borrowing a housing loan from the bank, ie., preliminary procedures, hidden charges, processing fees, interest rates, etc. The study also focuses on the type of housing loan which is mostly preferred by the customers and finds out the best solutions for the bank to improve their customer satisfaction. In this process, the following queries need to be reconciled.
1. Since the time of inception till date what are the achievements and other expansions gained in discharging the banking services to the housing loan borrowers?
2. What type of activities is implanted in housing loan section to satisfy the various needs of the customers towards housing loan?
3. What are the reasons put forth by the bank to propose itself as the best performer and win the confidence of the customers?
4. Which type of housing loan is the most preferable one among the housing loan customers?
5. How far the customers are satisfied with the service of housing loan section in HDFC Bank?
6. Which is the most influencing factor that persuades a customer to borrow housing loan from HDFC bank?
1.4 Objectives of the Study
Objectives are formulated in such a way that it helps to study customer satisfaction level. These formulations of objectives make the study significant and meaningful, thereby setting a limit to the area of the study. The major objectives of the study are given below.
1. To know the motivating factors of the respondents to avail the housing loan from HDFC Bank.
2. To measure the level of satisfaction of the borrowers towards housing loan.
3. To examine the satisfactory and dissatisfactory issues of housing loan borrowers of HDFC Bank.
4. To find out the difficulties faced by the borrowers while availing Housing loan from HDFC Bank.
5. To study the service quality of HDFC bank.
1.5 Hypotheses
To fulfill the above objectives of the study the researcher has framed the following hypotheses and all the hypotheses are tested by using appropriate statistical tools.
1. There is no significant association between socio economic profiles of the respondents and their opinion about various factors of housing loan.
2. There is no significant association between the socio economic profiles of the respondents and purpose of availing housing loan.
3. There is no significant association between socio economic profiles of the respondents and source of knowledge about housing loan.
4. There is no significant association between socio economic profiles of the respondents and their satisfactory and dissatisfactory issues in respect of housing loan.
The socio-economic profile consists the following aspects:
1. Residing area of the respondents
2. Gender
3. Nature of customer
4. Type of house owned
5. Marital Status
6. Age
7. Occupation
8. Annual Income
9. Type of family
10. Purpose of loan
11. Sources of knowledge about Housing Loan
12. Number of occupation
13. Educational Qualification
Each aspects of the socio economic profiles have been tested with the above hypotheses are discussed in the analysis chapter of the study.
1.6 Methodology and Design of the study
The present study is descriptive and analytical in nature. Designing suitable methodology and selection of analytical tools are important for a meaningful analysis of any research problem. This section is devoted to a description of the methodology, which includes sampling design, collection of data and period of study and tools of analysis.
Sources of Data
Both primary and secondary data have been used for the present study. Secondary data were collected from the various books, journals, reports and websites whereas primary data were from the concerned respondents of the present study using interview schedule.
Research Instrument
To analyse and study the objectives and hypotheses of the present study, an interview schedule with appropriate questions was designed to collect the data. The first part captures the socio economic profile of the customers and the second part captures the opinion about the Housing loan, awareness about the various services of HDFC bank, factors considered for availing housing loan and problems faced in availing housing loan in HDFC bank. The face and content validity is finalised after making consultation with the experts. Based on their feedback, it is found that all the items developed by the researcher found adequate validity in analysing the customers’ perception towards housing finance in HDFC.
Pilot Study
After finalizing the number of items in the research instrument using face and content validity tests, a pilot study was undertaken to assess the reliability of the variables included under the four dimensions. Since the researcher got favourable results from the pilot study, the present study has been undertaken.
Reliability Test
The variables constructed in the interview schedule are subject to reliability test. Cronbach Alpha test is used to measure the internal consistency of the instrument and the result of the reliability test is presented in the following table.
Table 1.1: Result of Reliability Test – Cronbach Alpha
S. No. Dimensions Reliability coefficients
1. Factors considered for preferring HDFC for Housing Loan 0.765
2. Perception towards availing housing loan in HDFC 0.873
3. Problems faced with HDFC banks regarding housing loan 0.861
4. Awareness about the various services of HDFC bank 0.738
From the Table 1.1, it is found that the reliability coefficients for the variables chosen for this study are more than 0.60, which is an acceptable value. So, the items constituting each variable under study have reasonable internal consistency.
Area of Study
The present research work is conducted within the Salem District of Tamil Nadu. The main reason for choosing Salem district is that the researcher is located here and is familiar with the place.
Sample Size
The sample size for the present study is determined by using the G Power 3.1. For scientific research power (1-?? err prob) 0.95 and for social science research power (1-?? err prob) 0.85 is applied. The details of proposed tests and the suggested sample size are presented in the following table 1.2.
Table 1.2: Determination of Sample Size
S.No Type of Test ?? err prob Power
(1-?? err prob) Total Sample Size
1. Z ‘ Test 0.05 0.85 495
2. F-Test – ANOVA 0.05 0.85 201
3. Correlation 0.05 0.85 96
4. Regression 0.05 0.85 42
Source: G POWER 3.1
Form the above table it is understood the highest number of 495 samples is produced for the Z test. Hence it is decided to collect data from the 500 respondents (which is more than the sample size of 495 for Z test produced by G Power 3.1).
1.7 Sampling Technique
Random sampling method is adopted for selection of sample customers. The samples are selected from the list of Housing Loan Borrowers of nine taluks of the district available in the records of the HDFC Main Branch, Salem. Out of the 1,666 borrowers (borrowed from the HDFC bank during 2012-13) 500 samples (30% of the 1,666) have been selected as per the stratified proportionate random sampling technique. The details of respondents selected from Salem district is presented in the following table:
Table 1.3: Details of Number of respondents Selected in Salem District
Sl.No Name of
the Taluks Number of borrowers of housing loan in 2011-12
(N= 1,662) Percentage to the total No. of Sample borrowers
30% of the total borrowers = 498.6 rounded to 500
1. Attur 125 7.50 38
(7.5% of 500)
2. Edappadi 110 6.60 33
(6.6% of 500)
3. Gangavalli 98 5.89 29
(5.89% of 500)
4. Mettur 128 7.68 38
(7.68% of 500)
5. Omalur 86 5.16 26
(5.16% 0f 500)
6. Salem 848 50.90 255
(50.9% of 500)
7. Sankari 78 4.68 23
(4.68% of 500)
8. Vazhappaadi 115 6.90 35
(6.9% of 500)
9. Yercaud 78 4.69 24
Total 1,666 100.00 500
1.8 Fieldwork and collection of data
The researcher himself carried out the fieldwork for collection of data. The researcher used the interview schedule (Appendix) for the collection of primary data from the customers selected for the present research work.
1.9 Data processing
After the completion of data collection work, filled up interview schedules were edited and master table was prepared to incorporate all the information available in the interview schedule. The classification, analysis and interpretation of data are done through SPSS.
1.10 Tools of Analysis
The following statistical Tools are used for analysis of data using SPSS.
1. Percentage analysis
2. t – test
3. ANOVA
4. Correlation and
5. Chi Square test
In addition to the above tests other tools such as Mean and Standard deviation also have been used to analyse the data.
1.11 Period of Study
The period of the study is from 2012 to 2013.
1.12 Limitations of the study
The following are the limitations of the present study:
1. Since the study covers only Salem district the findings of the study are applicable to this Salem district only.
2. The present study is based on the opinion of the customers of HDFC in the Salem district limit only. Hence the opinion may change with the change of times.
1.13 Chapter Scheme
The present study entitled ‘A STUDY ON HOUSING FINANCE IN SALEM DISTRICT WITH SPECIAL REFERENCE TO HDFC BANK’ is presented in five chapters.
Chapter – I ‘INTRODUCTION AND DESIGN OF THE STUDY’ describes the introduction and design of the study which covers the statement of the problem, objectives of the study, hypotheses, methodology, and limitations of the study.
Chapter ‘ II ‘REVIEW OF LITERATURE’ is designed to analyse the review of the past work done in this field to know the research gap and analysis made.
Chapter – III ‘HISTORY AND GROWTH OF HDFC BANK – AN OVER VIEW’ describes the over view of history and growth of HDFC bank with the various services offered by the bank to their customers
Chapter – IV ‘ANALYSIS OF SOCIO ECONOMIC PROFILE AND PERCEPTION TOWARDS HOUSING LOAN IN HDFC BANK’ analyses the profile of the respondents with their perception and problems regarding housing loan in HDFC bank in the study area.
Chapter – V ‘SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION’ is designed to present the major findings of the study and offer suitable suggestions to increase the customer satisfaction towards housing loan in HDFC bank. This chapter also indicates scope for further research in the related area.
CHAPTER ‘ II
REVIEW OF LITERATURE
The review of literature thus becomes a link between the research proposed and the studies already done. It tells the reader about aspects that have been already established or concluded by other authors, and gives a chance to the reader to appreciate the evidence that has already been collected during previous research, and thus projects the current research work in the proper perspective.
Hence, review of literature is essential for every research for an effective analysis and interpretation. Literature reviews are classified as argumentative review, integrative review, historical review, methodological review, systematic review and theoretical review. Methodological reviews are those which explain about the substantive fields, research approaches and data collection, analysis techniques which enables the researcher to draw on a wide variety of knowledge ranging from the conceptual level to practical documents for use in fieldwork in the areas of ontological and epistemological consideration, quantitative and qualitative integration, sampling, interviewing, data collection and data analysis. For the present study, the researcher has followed the methodological review to know the research gap and method of analysis followed in the earlier studies. The following studies, which cover the fire accidents in industries and public awareness, are reviewed for the present study.
Kendall C.L and Russ F.A have felt and expressed that "warranties are promise of complaint resolution and they often encourage dissatisfied customers to return. They also concluded that expectations of warranty services are greater for durable goods than non-durable goods"
Leie M.M and Sheth J.D stated that "Expectation of customers regarding such after sales support as warranties, parts availability and other post-purchase services will be factors determining customer’s satisfaction particularly for durables. After sales support is said to be the litmus test of a firm’s intention towards its customers".
Naumann earl, and Donald W.Jackson .Jr., In their article entitled "One more time how do you satisfy your customers?". They have developed a similar type of modified two-factors theory applied to customer satisfaction. According to them exploring the process of value creation will give firms a better grasp of the maximum or minimum of customer’s satisfaction.
Richard N.Cardozo reported on results with the help of surveying variables through customer satisfaction with a product . According to him,the customer satisfaction is influenced by the effort expanded to acquire the product, and the expectations concerning the product. Specifically, the privileges suggest that satisfaction with the product may be higher when customers expend considerable effort to obtain the product than when they use only modest effort. This finding is opposed to usual notions of marketing efficiency and customer convenience. The research also suggested that customer satisfaction is lower when the product does not come up to expectation.
Robert A.Westbrook On "marketing studies of consumer satisfaction / dissatisfaction" has empirically evaluated selected measurements properties viz Reliability and Validity.
Schiffmna, Loen G and Lesline Lazer Knuck has stated that, "The behaviour that consumer displays in search for purchasing, using and evaluating products, service and ideas which they expect will satisfy their needs".
Shri Mukul P.Gupta, has made an attempt to elaborate on issues such as brand loyalty as well as customers satisfaction. According to him, a very thin line divides the loyalty and satisfaction of satisfied customers, so any wining brand promoter must know which side of this line he should stand on.
Priyanka Saroha ., in her study entitled ‘An Analytical Study of Housing Finance in India with special reference to HDFC and LIC Housing Finance Ltd’, found that Housing Development Finance Corporation Ltd (HDFC) is one of the leaders in the Indian housing finance market with almost 17% market share as on March 2010 serving more than 38 lakh Indian customers as on March 2011, HDFC also offers customized solutions that fit to the need of the customer.
Jasmine Tiwana ., in her article entitled ‘ Regulatory Framework of Housing Finance Companies in India’, studied about the housing finance in India. Various agencies have been established in public and private sector to provide finance for housing. National Housing Bank (NHB), an apex level institution wholly owned by the Reserve Bank of India, was set up in 1988 under National Housing Bank Act 1987. It promotes housing finance institutions, issues directions, provides finance and other support to the institutions. The main players in the housing finance sector are all the housing finance companies, scheduled commercial banks, scheduled cooperative banks, regional rural banks and state level apex cooperative housing finance societies. The regulatory aspects pertaining to housing finance companies in the light of various directions and guidelines issued by National Housing Bank are discussed.
Nallusamy ., in his article entitled ‘A Study on Customer perceptions and satisfaction towards Home Loans in Namakkal’, found that the Namakkal District has made a rapid stride in the development of urban cooperative banks with an aim to provide adequate and timely financial assistance to help the small entrepreneurs, middle class and weaker sections of the society. The present study was undertaken to analyze the perception of customers towards home loans of Urban Co-operative Bank Limited (UCB), Namakkal. The paper examined the satisfaction level while availing loans. A sample of 120 customers of the bank comprising of public servants, private sector employees and self-employed from urban areas of Namakkal District were selected. The research has 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. The results further revealed that the main reason for people to prefer this bank is the trust of the customers in the bank, lower interest rates and easy repayable installments.
Ravindra ., in his article entitled ‘Operational and Financial Performance Evaluation of Housing Finance Companies in India’, analysed about the importance of the housing sector in India. The need for Finance to purchase a house brought out specialized Housing Finance Institutions. The Housing Finance Companies (HFCs) as they are called today have stepped up their lending over the years contributing to the growth of the housing sector. Top housing finance companies such as HDFC, LIC Housing Finance witnessed loan book growth of 22-37 per cent during the year ended March 2012, thereby increasing their market share. Keeping this fact in view, the present paper has given an attempt to evaluate the operational performance of LIC Housing finance Limited and HDFC.
Ravindra ., in his article entitled ‘Service Quality of Housing Finance Companies in India’, analysed about the customer satisfaction in the housing finance sector. The survival of business has direct correlation with satisfaction of the customer. Customer satisfaction, which is attributed to the conduct of business, has certain specific dimensions. Analyzing service experience brings to focus two aspects. One part of service experience, which can be controlled by the service provider, here the housing finance company. It can plan and execute every encounter in such a way that borrowers get the best conditions. The finance companies in their cascading flow of service plans manage professional delivery of service, which leads to customer’s delight. The other part of service experience that cannot be controlled by the service provider is customer’s level of fatigue, his boredom and attitude. Generally Housing Finance Companies maintain a long term relationship with their customers from the date of sanctioning letter of a loan to clearing the loans. Customers need a variety of services during this period on various parameters relating to disbursement, rate of interest, loans for expansion, foreclosure, mode of repayment etc., keeping in view the relative importance of each service, an attempt has been made in this study to measure and compare the quality of service extended to customers by LIC Housing Finance Limited and HDFC. The research was carried out among 300 home loan beneficiaries by using a structured questionnaire. For the purpose of analysis various statistical tools have been applied like log linear regression model, mean score values and t-test.
Archana A. Mahajan ., in her study entitled ‘A Comparative Study of Disbursement of Housing Loan of Public Private and Co-Operative Banks in Sangli-Miraj-Kupwad Corporation Area’, found that there is an increasing demand for a house which leads to increase in the rate of land and construction. But it is difficult for layman to purchase a home in single cash payment. So they move towards banks or financial institutions which help them and give better services and maximum loan amount. Therefore, here banks play an important role to lend money to needy people. Every bank has different bank policies e.g. rate of interest, processing fees, maximum loan limit, different loan period, lease or mortgage procedure, recovery of loan procedure etc. People are unknown about all these points therefore there is a need to study that which bank gives loan with minimum terms and conditions. So here, the researcher had undertaken a comparative study of disbursement of housing loan of private, public and Co-operative banks in Sangli-Miraj- Kupwad Corporation area during the period 2003 – 2008.
Rajani Levaku , in his article entitled ‘Housing Finance: Study with reference to Kadapa Corporation’, found that the purpose of a housing finance system is to provide the funds from which home-buyers need to purchase their homes. This is a simple objective, and the number of ways in which it can be achieved is limited. Notwithstanding this basic simplicity, in a number of countries, largely as a result of government action, very complicated housing finance systems have been developed. The present paper deals with various problems faced by the sample borrowers in availing loans from the Housing Finance Institutions.
Shams Tabrez ., in her article entitled ‘Customer Perception towards Home Loans Industry in India ‘A Study of HDFC Bank Ltd’, found that the housing sector plays an important role in the economic development of the country. Home loans constitute an important element of any loan mix of banks. Home loans have made it easier to fulfill the shelter needs of individuals and families across the globe. This in turn leads to the economic development of any region. In India various factors including location, size of the realty homes, interest rates, lengthy processing time, purchasing power of customers ,property valuation difference etc were identified as main factors for marketing of home loans. This paper attempts to find out the customer perception for home loans industry. Recommendations and suggestions were made to improve the services offered by HDFC bank in India.
Raval Priyang , in his article entitled ‘Awareness about NHB as a Regulator’, found that the India is a county where owning a house is symbol of financial stability. It affects social standing of a person. The availability of finance to a middle class person has increased tremendously. But majority of people do not know about who is the regulator of this sector, that is, who is regulating the Housing Finance Companies (HFCs). In this paper we have tried to get the sense about the awareness in general public, in particular persons who have taken housing loan, whether they know about the National Housing Bank’s(NHB) work or not. What we find is yours to see and understand.
Christos C. Frangos, in his study entitled ‘Factors Affecting Customers’ Decision for Taking out Bank Loans: A Case of Greek Customers’, made an analysis to identify factors that influence Greek customers’ decision to take out a loan from commercial banks. A number of variables (demographics, service quality and satisfaction) have been examined as potential factors influencing customers’ decision to take out a loan. A randomly selected sample of Greek citizens (n=277) was chosen in order to test our hypotheses. A questionnaire with self-determined scales was created after ensuring the instrument’s validity through confirmatory factor analysis. Logistic regression results show that personal marital status, customer service, shop design and interest rates are the most significant predictors of taking loans. Several managerial implications suggest bank managers should focus on giving loans to single individuals as well as change their interest rates policies by decreasing rates for all kinds of loans, especially housing loans.
Hari Govinda Rao , in his study entitled ‘An Assessment of the Indian Housing" states that the housing dimension in India has been changing in recent years. India has initiated so many housing reforms that has taken many forms and manifestations characterized by the reduction in social allocation, cutbacks in public funding and promotion of a real estate culture in close partnership between the state and private actors. Mortgage financing markets can play an important role in stimulating affordable housing markets and improving housing quality in many countries. Unfortunately, they are often less developed in India. This lack of development often translates into lower homeownership rates or lower housing quality. Most stem from the central dilemma that the resources are always too limited and housing development heavily depend on the financial institutions such as banks, credit corporations and development banks for the supply of finance to meet their daily financial needs. Against this backdrop this paper will assess basic nuances of Indian financing system. This paper will also provide key issues, future outlook and institutional performance.
Inderbir kaur , in his study entitled ‘Comparative Study of Housing Loan of HDFC and ICICI Bank’, found that the demand for home loans will not sag much. The reason is a substantial rise in the income-generating capability of Indian youth. So this particular section will keep the housing loan demand high and increased lending rates can only shelve their plans for some time.
Madhavi , in her study entitled ‘Analysis of Systematic Risk in Select Housing Finance Companies in India’, analysed about the impact of volatility and systematic risk in select Housing Finance Companies in India. During the period of rapid melt down of stock markets most of the share prices fell to their lowest levels. Dewan Housing Finance Corporation Limited has very small proportion of systematic risk associated with it. It indicates that the housing finance companies cannot give greater returns than market returns in a bull market and did not loose more than the market lost in a bear market. The investment in housing finance stocks is stable in nature. It can be concluded that investment in housing finance stocks is safer in volatile market conditions.
Rachida Hamzi , in his study entitled ‘Customer Perceptions and Satisfaction towards Home Loans’, analyzed about the perception of customers towards home loans of Baghat Urban Co-operative Bank Limited (BUCB), Himachal Pradesh. The paper examined the satisfaction level and problems faced by customers while availing loans. A sample of 120 customers of the bank comprising of public servants, private sector employees and self-employed from its three branches serving Solan town, Chambaghat and Parwanoo areas has been selected. The research has 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-tapisim. The results further revealed that the main reason for people to prefer this bank is the trust of the customers in the bank, lower interest rates and easy repayable installments.
Pushpa Sangwan , in his study entitled ‘ A Comparative Analysis on Home Loans of Public and Private Sector Banks In India’, explained about the Indian housing finance industry has grown by leaps and bound in a few years. There is a greater number of borrowers of home loans. So by this study we can find out the satisfaction level of customers and problems faced by them in obtaining home loans. For this purpose, we have taken four commercial Banks in Chandigarh city namely HDFC Bank, PNB, Union Bank of India and ICICI Bank. It includes two public sector banks and two private sector banks. In the research methodology a sample size of 200 respondents has been taken through random sampling. They have taken both primary data as well as secondary data, in the primary data questionnaire has been used to check the satisfaction level of customers about home loans. In the secondary data, the annual reports of RBI, commercial banks and broachers of these banks have been studied. Finally the whole research was carried out in a systematic way to reach at exact results. The whole research and findings were based on the objectives. Some of the limitations faced in collecting the data were Lack of time, lack of data, non-response, reluctant attitude and illiteracy of respondents, which posed problems in carrying out the research.
Naveen Kumar , in his study entitled ‘Customer Satisfaction in New Generation Banks – A Case Study of HDFC Bank’, found that the Customers’ satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization’s products. With the phenomenal increase in the country’s population and the increased demand for banking services; speed, service quality and customer satisfaction are going to be key differentiators for each bank’s future success. Thus, it is imperative for banks to get useful feedback on their actual response time and customers’ service quality perceptions of retail banking, which in turn will help them take positive steps to maintain a competitive edge. This paper helps to study the new generation banks in India.
Srinivas , in his study entitled ‘Comparative financial performance of HDFC bank and ICICI bank’, made an attempt to analyse and compare the Financial Performance of HDFC and ICICI Bank and offer suggestions for the improvement of efficiency in select banks. For the purpose of analysis of comparative financial performance of the select banks, world-renowned, CAMELS model with t-test is applied. CAMELS stand for Capital Adequacy, Asset Quality, Management, Earning Quality, Liquidity and Sensitivity. The capital adequacy and Tier I capital ratio of ICICI and HDFC bank is more than the Basel Accord. It concludes that both the banks are good with respect capital adequacy because it is above the Basel norms.
Shalu Rani , in her article entitled ‘Home loan: customers’ perception of HDFC bank versus ICICI bank’, analysed about the customers’ perception of HDFC bank versus ICICI bank A home loan is a long term commitment of 15-20 years, several factors like expertise, quality of service, in-depth domain knowledge and the company’s level of commitment and transparency right through, the loan procedures, the fine print, quality of services offered and safe retrieval of the title deed are critical. There are lot many banks and financial institutions through which one can easily avail of a home loan at reasonable rate of interest. The research was carried out among 50 bank customers by using a structured questionnaire. For the purpose of analysis various statistical tools has been applied like percentage, mean score value, t-test and chi-square test.
Dusan Stojanovic , in his article entitled ‘Is the Federal Home Loan Bank System Good for Banks’? suggests liquidity and leverage risks rose modestly, but interest-rate risk declined somewhat. Credit risk and overall failure risk were largely unaffected. Although the evidence suggest FHL Bank membership and advances have had, at best, only a modest impact on bank risk, we caution that the 1990s constitute one observation and that moral hazard could be pronounced if leverage ratios revert to historical norms.
Brophy, in his article entitled ‘Mixed-Income Housing: Factors for Success’ indicates that successful mixed-income developments must be well located and excellent in their design and management if they are to attract renters who have location choices. Mixed-income housing works best where there are sufficient units aimed at the higher income renters to create a critical mass of market units and where there are no differences in the nature and quality of the units being offered that are due to the income of the renters. If upward mobility of the low-income residents is a goal, it is necessary to have activities that are specifically aimed at creating opportunities for them; income mixing alone is not sufficient. Perhaps the biggest challenge is income integration in neighborhood settings where property management is not able to set behavioral norms.
Jeff Holt , in his article entitled ‘A Summary of the Primary Causes of the Housing Bubble and the Resulting Credit Crisis: A Non-Technical Paper’, found that the four primary causes of the housing bubble’low mortgage interest rates, low short-term interest rates, relaxed standards for mortgage loans, and irrational exuberance. This paper concludes that the combination of these factors caused the housing bubble to be more extreme and the resulting credit crisis to be more severe.
Veronica Cacdac, Warnock, in his article entitled ‘Markets and housing finance’ analysed about the provision of housing finance markets. Housing is a major purchase requiring long-term financing, and the factors that are associated with well-functioning housing finance systems are those that enable the provision of long-term finance. Across all countries, controlling for country size, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws), deeper credit information systems, and a more stable macroeconomic environment have deeper housing finance systems. These same factors also help explain the variation in housing finance across emerging market economies. Across developed countries, which tend to have low macroeconomic volatility and relatively extensive credit information systems, variation in the strength of legal rights helps explain the extent of housing finance. We also examine another potential factor’the existence of sizeable government securities markets’that might enable the development of emerging markets’ housing finance systems, but we find no evidence supporting that.
Tabrez Shams , in his article entitled ‘Customer perception towards home loans industry in India ‘ A study of HDFC Bank Ltd’, found that the housing sector plays an important role in the economic development of the country. Home loans constitute an important element of any loan mix of banks. Home loans have made it easier to fulfill the shelter needs of individuals and families across the globe. This in turn leads to the economic development of any region. In India various factors including location, size of the realty homes, interest rates, lengthy processing time, purchasing power of customers, property valuation difference etc were identified as main factors for marketing of home loans. This paper attempts to find out the customer perception for home loans industry. Recommendations and suggestions were made to improve the services offered by HDFC bank in India.
Bujang Ahmad Ariffian, in his article entitled ‘The Relationship between Demographic Factors and Housing Affordability’, found that the high rate of urban growth was attributed to migration, increase in population size and income level, which has significantly contributed to housing market. The conditions of housing market have also changed due to increasing demand and fluctuating price. The buying of a residential property became influenced by affordability level. Indeed, the affordability level is important for one to buy and own a residential property (Bujang, 2006). Demographic factors are responsible for driving the housing price in the local market. Price level affects local housing affordability by income groups. However, the relationship between demographic elements and housing affordability that affects the local market is still not clear and needs to be reviewed.
Mahabir Singh Narwal , in his study entitled ‘Customer Preferences for Home Loans’, made an analysis to know the Customer Preferences for Home Loans. Data has been collected from 200 respondents and analyzed with the help of Factor Analysis and ANOVA. The findings reveal that the customer preferences for home loans is affected by customers’ friendly environment, processing and disbursing, rate of interest, payment terms and conditions, and freebies offered by the banks. To see whether there is any significant difference among these factors affecting customer preferences for home loans, the data was further analyzed according to demographic variables viz. occupation and income.
Scott Frame, in his article entitled ‘Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition’, found that the recent bank portfolio responses to FHLB advance shocks are of similar magnitude for mortgages, for commercial and industrial loans, and for other real estate loans. This suggests that advances are just as likely to fund other types of bank credit as to fund single-family mortgages. Second, unexpected changes in all types of bank lending are accommodated using FHLB advances. Third, FHLB advances do not appear to reduce variability in bank residential mortgage lending resulting from macroeconomic shocks. However, some banks appear to have used FHLB advances to reduce variability in commercial.
Louis Lee Woods, in his study entitled ‘The Federal Home Loan Bank Board, Redlining, and the National Proliferation of Racial Lending Discrimination, 1921’1950’, analysed about the interest rate on the home loans. Findings of this study are especially important for developing appropriate marketing strategies by lending banks directed towards their home loan customers, so as to help in planning of their timely payment of EMIs with minimum effect of fluctuation on rate of their home loan interests and avoiding the possible increase in number of home loan defaulters. Primary data collected through questionnaire and Frequency distribution, Mean and Standard deviation, Analysis of Variances (ANOVA) were used as statistical tools for analysis of data.
Mike Adebamowo, in his article entitled ‘Problems Mitigating Housing Finance through Primary Mortgage Institutions in Lagos’, made an investigation on the structure and challenges confronting housing finance efforts of Primary Mortgage Institutions in Lagos. Data obtained were analyzed through simple frequency distribution tables and bar charts. Among major findings of the research include the following: that the PMIs nature of business transactions include commercial banking, LPO financing, merchandising, property agency and sales and transport. The study suggests that the NHF policy should be reviewed and that government should provide incentives such as tax rebate for building materials manufacture, encourage the re-training of labour to improve their skills and speed. The Nigerian land law should be reviewed to make access to land less cumbersome while cheap funding sources should be provided specifically for housing finance.
Sharmila Pudaruth, in his study entitled ‘Exploring Customer Experience Management and its Contributing Factors for Home Loan Providers in Mauritius’, investigates the contributing factors which have an impact on customer experience management for home loan providers in Mauritius. Indeed, an examination of the existing academic literature provides insight into how home loan providers have witnessed technological changes and have attempted to analyse the effects of this change on their marketing and distribution structures. Additionally, the research paper explores online customer experiences, the impact of electronic technologies on service delivery, preference for human interaction or electronic technologies for home loan providers. Based on the extensive literature survey, specific objectives were set related to assess the contributing factors for managing customer experiences for home loan providers. The methodology used in the study consisted of a survey among 100 customers of home loan providers and the findings are fully analysed. Furthermore, some recommendations are proposed to assist home loan providers to better manage customer experiences in the housing sector.
Mamata , in his article entitled ‘A Study on Issues related to Housing Finance: An Experience with State Bank of India’, analysed about the Issues related to Housing Finance. Many banks are providing home loans at cheapest rate to attract consumers towards them. The attitude of the SBI is becoming more customer friendly, currently offering to consumers cheapest loan over homes. This paper highlights certain concern areas of the banker and the customers in specific to the SBI Bank in housing finance in comparison with the other competitors in the housing industry and also focuses on the recovery system followed by SBI.
Mahadeva, in their article entitled ‘ Challenges of a Sustainable Housing Finance System in India’, found that Indian housing finance market (HFM) has failed to promote housing development across the country. In its desire to stabilise itself mainly in the major urban areas, the HFM has largely neglected issues of the housing sector in rural and less’developed regions. Further, the financial housing needs of a large segment of the population are not being addressed. They continue to rely on informal sources for housing finance. This paper describes and analyses the major issues confronting India’s HFM. It offers policy options to make the HFM more effective in addressing the hitherto neglected segment, the rural and less’developed region.
Rani Shalu , in his study entitled ‘Home loan: customers’ perception of HDFC bank versus ICICI bank’, analysed about the several factors like expertise, quality of service, in-depth domain knowledge and the company’s level of commitment and transparency right through, the loan procedures, the fine print, quality of services offered and safe retrieval of the title deed regarding housing loan. There are lot many banks and financial institutions through which one can easily avail of a home loan at reasonable rate of interest. From the last decade, the Government of India has been continuously trying to strengthen the housing sector by introducing various housing loan schemes for rural and urban population. The purpose of this paper is to analyze the customer satisfaction regarding home loan of HDFC bank and ICICI bank. The research was carried out among 50 bank customers by using a structured questionnaire. For the purpose of analysis various statistical tools has been applied like percentage, mean score value, t-test and chi-square test.
Quoc Hung Nguyens , in his article entitled ‘Housing investment: What makes it so volatile? Theory and evidence from OECD countries’, analysed about how mortgage market liberalization affects the housing market. The housing collateral constraint creates a link between the housing market and borrowing capacity, a link that amplifies the response of housing demand to technology shocks and strengthens in economies with more liberalized mortgage markets.
Shahid Ebrahim, in his article entitled ‘Can an Islamic model of housing finance cooperative elevate the economic status of the underprivileged’? analysed that a formal home loan is onerous to supreme borrowers in efficient markets. This can deter home ownership for financially strapped individuals, leading to a market failure. This paper proposes a special form of cooperative mortgage financing to overcome this market failure. It integrate the literature of mortgage design with that of informal savings schemes to illustrate that this mode of financing dissipates credit risk better than the formal mode of financing. It is also resilient to volatility of interest rates and allows prepayments without any additional charges.
Paul S. Calem , in his study entitled ‘Credit impairment and housing tenure status’, analysed about the relationship between financing constraints and home ownership rates using the 2004 National Longitudinal Survey of Youth. The survey respondents are a nationally representative sample of Americans 39’47 years of age. As most of the sample had been in their current residence prior to 2004, this study reflects housing tenure status decisions made prior to the recent credit expansion and subsequent crisis. Past research has emphasized constraints, and income constraints as limiting homeownership. The estimation results here point to primary roles for credit impairment and lack of credit history. It also find that excluding controls for the endogenously of wealth and income may mask the impact of credit factors.
Andre K. Anundsen, in his article entitled ‘Self-reinforcing effects between housing prices and credit’, analysed that the financial crisis has brought the interaction between housing prices and household borrowing into the limelight of the economic policy debate. This paper examines the nexus of housing prices and credit in Norway within a structural vector equilibrium correction model (SVECM) over the period 1986q2’2008q4. The results establish a two way interaction in the long-run, so that higher housing prices lead to a credit expansion, which in turn puts an upward pressure on prices. Interest rates influence housing prices indirectly through the credit channel. Furthermore, households’ expectations about the future development of their own income as well as in the Norwegian economy have a significant impact on housing price growth. Dynamic simulations show how shocks are propagated and amplified. When It augment the model to include the supply side of the housing market, these effects are dampened.
Xiaoling Zhang , in his article entitled ‘Policy risks in developing the housing product process: a holistic perspective’, found that the housing products are subject to more risks than other manufacturing products. Based on an empirical investigation, this paper examines the policy risks existing in the process of developing housing products in China. The findings demonstrate that policy risks have a major impact on the development of housing products in China and with different levels of influences at different development stages. A comprehensive impact degree (CID) model is introduced to analyze the major policy risks affecting business performance during the development process. The research findings provide a valuable reference to both housing developers and policy makers in the industry for adopting proper risk management strategies to mitigate the effects of the risks involved in the development of the Chinese housing market.
Bree J. Lang., in his article entitled ‘Location incentives in the low-income housing tax credit: Are qualified census tracts necessary’? found that the low-income housing tax credit (LIHTC) is the largest project-based housing subsidy in the United States. Within the program, private developers receive a subsidy in exchange for constructing apartment units that rent for a predetermined affordable rate. Because the subsidy requires apartment buildings to charge a lower rental rate, the opportunity cost of developing subsidized housing in a location is the market rent that a developer could have charged if he had not received the subsidy. This study characterizes how profit incentives motivate location decisions within the LIHTC program by showing that opportunity cost causes more LIHTC development in locations with low market rent. This result implies that additional financial incentives, like the qualified census tract, may not be necessary to promote construction of subsidized housing in low-rent areas.
Matteo Iacoviello, in his article entitled ‘The credit channel of monetary policy: Evidence from the housing market’, analysed the credit channel of monetary policy in the housing market. It argues that the relevance of the credit channel depends on the structural features of the housing finance system, in particular efficiency and institutional organisation. It employs a VAR approach to analyse this issue in four housing markets (Finland, Germany, Norway and the UK). Our findings show across countries a clear-cut relationship between presence of the credit channel, efficiency of housing finance and type of institutions active in mortgage provision.
Edwin Deutsch, in his article entitled ‘The slowdown in the timing of housing purchases in Japan in the 1990s’, found that the housing prices are high in Japan, resulting in high mortgage payments. Since monthly mortgage payments cannot exceed 25% of current income, households tend to accumulate down payments in the range of 30’45% of house value. This not only defers their entry into homeownership, but also has significant influence on the type of house eventually purchased. The objective of this study is to understand the changing access to ownership during the 1990s, with emphasis on Wealth positions based on savings out of income, private transfers and bequests, and support from parents or other relatives. The source of data is the Ministry of Infrastructure, Land and Transportation survey on household home finance conducted from 1992 to 2000. The methodology employed is duration analysis, with special emphasis on the treatment of liquid asset covariates.
Elias Oikarinen, in his article entitled ‘Interaction between housing prices and household borrowing: The Finnish case’ found that housing appreciation has a notable positive impact on the outstanding consumption loan stock. It appears that there is no similar relationship between stock prices and credit. Understanding the two-way interaction between housing prices and credit is of importance, since the interdependence is likely to augment boom’bust cycles in the economy and increase the fragility of the financial sector.
Elias Oikarinen., in his article entitled ‘Household borrowing and metropolitan housing price dynamics ‘ Empirical evidence from Helsinki’ found that housing appreciation in the Helsinki Metropolitan area is Granger caused by the household debt-to-GDP ratio both in the short and in the long run. Causality from the housing market to credit, in turn, seems to run only through a co integrating long-run relation. While the estimated long-run relation between housing prices, income and debt-to-GDP ratio appears to have remained stable through the sample period (1975Q1-2006Q2), the short-run dynamics changed somewhat due to the financial liberalization in the late 1980s. The stability of the long-run relation implies that the loan data are able to cater, at least to a notable extent, for the effect of the changes in Finnish households’ liquidity constraints on housing demand. In line with previous literature, it is also found that housing price adjustment is sluggish and includes notable backward-looking features.
John V. Duca, in his article entitled ‘Housing markets and the financial crisis of 2007’2009: Lessons for the future ‘, found that the unsustainable weakening of credit standards induced a US mortgage lending and housing bubble, whose consumption impact was amplified by innovations altering the collateral role of housing. In countries with more stable credit standards, any overshooting of construction and house prices owed more to traditional housing supply and demand factors. Housing collateral effects on consumption also varied, depending on the liquidity of housing Wealth. Lessons for the future include recognizing the importance of financial innovation, regulation, housing policies, and global financial imbalances for fueling credit, construction, house price and consumption cycles that vary across countries.
Mokhtarul Wadud, I.K.M., in his article entitled ‘Monetary policy and the housing market in Australia’, analysed about the role of monetary policy in the Australian housing market using structural vector auto regression model. The results show that a contraction monetary policy significantly reduces housing activity but does not exert any significant negative effect on the real house prices. The housing output and real house prices also respond significantly to shocks stemming from housing supply, housing demand and a number of other variables. The findings further suggest that monetary policy rule in Australia takes into account the changes in house price along with the usual targets of inflation and output gap. On the backdrop of the observed high house prices and increased affordability problem, the findings of this paper are expected to shed some lights on the current policy environment pertaining to the Australian housing sector.
Kyung-Hwan Kim, in his article entitled ‘Housing and the Korean economy’, analysed about the nexus between housing and the Korean economy. It starts with an overview of the size, growth, and volatility of residential investment in conjunction with long-term resource allocation and short-term macroeconomic fluctuations. Then, the evolution of housing finance and its implications for recent house price run-up are discussed. The relationships among housing price, consumer spending, and inflation are also investigated. Particular attention is paid to the debate over house price bubbles, housing Wealth effects on consumption, and the causality between house price and inflation. The paper concludes with a brief assessment of government intervention to stabilize house prices.
Odd Sinai, in his article entitled ‘Do low-income housing subsidies increase the occupied housing stock’?, examine the real effect of subsidized housing’does it increase the housing stock? If subsidized housing raises the quantity of occupied housing per capita, either more people are finding housing or they are being housed less densely. On the other hand, if subsidized housing merely crowds-out equivalent-quality low-income housing that otherwise would have been provided by the private sector, the housing policy may have little real effect on housing consumption.
Nathaniel Baum-Snow, in his article entitled ‘The effects of low income housing tax credit developments on neighborhoods’, analysed about the impacts of new housing developments funded with the Low Income Housing Tax Credit (LIHTC), the largest federal project based housing program in the U.S., on the neighborhoods in which they are built. A discontinuity in the formula determining the magnitude of tax credits as a function of neighborhood characteristics generates pseudo-random assignment in the number of low income housing units built in similar sets of census tracts. Tracts where projects are awarded 30% higher tax credits receive approximately six more low income housing units on a base of seven units per tract. These additional new low income developments cause homeowner turnover to rise, raise property values in declining areas and reduce incomes in gentrifying areas in neighborhoods near the 30th percentile of the income distribution. LIHTC units significantly crowd out nearby new rental construction in gentrifying areas but do not displace new construction in stable or declining areas.
Paul S. Calem, in his article entitled ‘Credit impairment and housing tenure status’, analysed the relationship between financing constraints and homeownership rates using the 2004 wave of the 1979 National Longitudinal Survey of Youth. The survey respondents are a nationally representative sample of Americans 39’47 years of age as of this wave. As most of the sample had been in their current residence prior to 2004, this study reflects housing tenure status decisions made prior to the recent credit expansion and subsequent crisis. Past research has emphasized Wealth constraints, and income constraints as limiting homeownership. The estimation results here point to primary roles for credit impairment and lack of credit history. It also finds that excluding controls for the endogenous of Wealth and income may mask the impact of credit factors.
Michael J. Lea, in his article entitled ‘Housing Finance in an Inflationary Economy: The Experience of Mexico’, analysed about the housing finance is a policy area in which the stakes are high. An inappropriate policy can sink individual institutions or even entire financial systems. Mexico provides an excellent example of the problems an inappropriate housing finance policy can create. The use of fixed rate mortgages in an inflationary environment bankrupted state-run banks in the early 1980s and exacerbated the fiscal deficit and inflation problems of the country. In this paper, It utilize a model developed for the World Bank that simulates the performance of a financial institution offering mortgage loans through historical (1984’1994) and forecast Mexican macroeconomic environments. Through the use of this model It attempt to understand how different mortgage instruments are viewed by financial institutions and the impact they can have on their operating performance. This type of analysis can be effective in both government and financial institution policy development.
Fumio Hayashi, in his article entitled ‘Housing finance imperfections, taxation, and private saving: A comparative simulation analysis of the United States and Japan’, analysed about the interaction among savings decisions, housing purchase decisions, and the tax system in the United States and Japan. To investigate this issue, researcher first documents the stylized fact that the typical Japanese household purchases a house later in the life cycle with a higher down-payment ratio than its U.S. counterpart. Second, a life-cycle simulation model that includes the housing purchase decision is constructed and used to compare the behavior of typical U.S. and Japanese households. The Japanese household is induced to save more early in the life cycle in order to meet the higher down-payment requirement. Finally, tax reform concerning the tax deductibility of mortgage interest payments or the tax-exempt status of interest income is shown to have a small impact on the aggregate saving rate in either country. For example, the introduction of tax-exempt saving in the United States would increase the saving rate by only 1.5%.
Nadia Benbouzid, in his article entitled ‘Determinants of bank credit default swap spreads: The role of the housing sector’, analysed about the credit spreads (CDS prices) in the UK banking sector with the performance of the housing sector. Using data on banking sector CDS spreads for the period January 2004 to April 2011, It find that house price dynamics are a key driving factor behind the increase in credit spreads as reflected in CDS prices. Also It find that as stock prices increase, both bank capital and bank borrowing capacity increase that in turn decreases credit risk. Furthermore as banking sector liquidity increases banks tend to lend to less credit-worthy borrowers that in turn increases credit risk in the banking sector. Collectively the results shed light on the determinants of credit risk in the banking sector.
Dag Einar Sommervoll, in his article entitled ‘Endogenous housing market cycles’, found that the Housing markets tend to display positive serial correlation as well as considerable volatility over time. It presents a heterogeneous agent model illustrating the connection between adaptive expectations and housing market fluctuations. A dwelling serves as a shelter, as a vehicle for investment and as mortgage collateral. Interesting dynamics arise as the valuation of these three properties changes over time through the interaction of buyers, sellers and mortgagees. In the absence of credit constraints imposed by mortgagees, house prices oscillate mildly around the equilibrium price. However, credit constraints imposed by mortgagees can affect market dynamics quite dramatically with periods of mild oscillations interrupted by violent collapses. This chaotic behavior arises even though buyers, sellers and mortgagees agree on market forecasts.
Andrew Paciorek, in his article entitled ‘Does home owning smooth the variability of future housing consumption’? analysed about the hedging benefit of owning a home reduces the variability of housing consumption after a move. When a current home owner’s house price covariance positively with housing costs in a future city, changes in the future cost of housing are offset by commensurate changes in Wealth before the move. Using Census micro-data, It find that the cross-sectional variation in house values subsequent to a move is lower for home owners who moved between more highly co varying cities. Our preferred estimates imply that an increase in covariance of one standard deviation reduces the variance of subsequent housing consumption by about 11%. Households at the top end of the covariance distribution who are likely to have owned large homes before moving get the largest reductions, of up to 40% relative to households at the median.
Summary
Form the above review of studies the researcher has gained some knowledge about the methods and techniques used for analysing the data and other conceptual framework in detail. Based on the knowledge gained from the methodological and descriptive literature, review analysis and interpretations has been made for the present study.
CHAPTER ‘ III
HISTORY AND GROWTH OF HDFC BANK ‘ AN OVER VIEW
3.1 History of HDFC Bank
The HDFC Bank was incorporated on August 1994 by the name ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI’s liberalization of the Indian Banking Industry in 1994.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 3336 branches spread over 2100 cities across India. All branches are linked on an online real-time basis. Customers in over 2000 locations are also serviced through Telephone Banking. The Bank also has a network of about over 11473 networked ATMs across these cities.
The promoter of the company HDFC Ltd which was incepted in 1977 is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank’s American Depository Shares (ADS ) are listed on the New York Stock Exchange (NYSE) under the symbol ‘HDB’ and the Bank’s Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange.
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The merged entity now holds a strong deposit base of around Rs. 1, 22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1, 63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.
HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:
Wholesale Banking Services
The Bank’s target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agro-based businesses.
Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements.
Treasury
Within this business, the bank has three main product areas – Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
Amalgamations
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.
HDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank’s branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-to-date technology, along with market position and expertise, to create a competitive advantage and build market share.
3.2 Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank’s American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol ‘HDB’.
Promoter
HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
Technology
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank’s branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world-class bank. In terms of core banking software, the Corporate Banking business and the Retail Banking business are supported by Flex cube, from Oracle Financial Services Software Limited. The systems are open, scalable and web-enabled.
The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.
Businesses
HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business segments:
Wholesale Banking
The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, small & mid-sized corporate and agro-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.
Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2012, the bank had a total card base (debit and credit cards) of over 19.71 million. The Bank is also one of the leading players in the "merchant acquiring" business with over 180,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Treasury
Within this business, the bank has three main product areas – Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank’s Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
Credit Rating
The Bank has its deposit programs rated by two rating agencies – Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank’s Fixed Deposit programme has been rated ‘CARE AAA (FD)’ [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk." CARE has also rated the bank’s Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA (ind)" rating to the Bank’s deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high".
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank’s Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.
Corporate Governance Rating
The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity’s current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank was assigned a ‘CRISIL GVC Level 1’ rating in January 2007 which indicates that the bank’s capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.
Net Work
HDFC Bank is headquartered in Mumbai. As on June 30, 2013, the Bank has a network of 3,251 branches in 2,022 cities across India. All branches are linked on an online real-time basis. Customers in over 1397 locations are also serviced through Telephone Banking. The Bank’s expansion plans take into account the need to have a presence in all major industrial and commercial centers, where its corporate customers are located, as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in centers where the NSE/BSE has a strong and active member base. The Bank also has a network of 11,177 ATMs across India. HDFC Bank’s ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
3.3 Products and Services of HDFC Bank
Personal Banking Services
‘ Savings Accounts
‘ Salary Accounts
‘ Current Accounts
‘ Fixed Deposits
‘ Demat Account
‘ Safe Deposit Lockers
‘ Loans
‘ Credit Cards
‘ Debit Cards
‘ Prepaid Cards
‘ Investments & Insurance
‘ Forex Services
‘ Payment Services
‘ Net Banking
‘ Insta Alerts
‘ Mobile Banking
‘ Insta Query
‘ ATM
‘ Phone Banking
NRI Banking Services
‘ Rupee Savings Accounts
‘ Rupee Current Accounts
‘ Rupee Fixed Deposits
‘ Foreign Currency Deposits
‘ Accounts for Returning Indians
‘ Quick remit (North America, UK, Europe, Southeast Asia)
‘ India Link (Middle East, Africa)
‘ Cheque Lock Box
‘ Telegraphic / Wire Transfer
‘ Funds Transfer through Cheques / DDs / TCs
‘ Mutual Funds
‘ Private Banking
‘ Portfolio Investment Schemes
‘ Loans
‘ Payment Services
‘ Net Banking
‘ Mobile Banking
‘ ATM
‘ Phone Banking
Achievements and Recognition
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well.
2013
IBA Banking Technology Awards 2012-2013 -Best technology bank, best internet bank, best customer management initiative and best mobility technology bank.
Business today – KPMG Best Banks Survey Awards 2013.
Outlook Money Awards 2013- Best bank in large banks category.
Dun and Bradstreet Polaris Financial Technology Banking Award 2013 -Nest Private sector bank in technology adoption.
Sunday Standard Best Banker Awards 2013- Safest private sector bank.
Asia Money 2013 – Best domestic bank in India.
MACCIA Awards 2013- Best in Financial services- bank category.
2012
DCSI Information Technology Award ‘ 2012.
Businessworld awards for banking excellence 2012- most tech -friendly bank
CSO Forum Information Technology Awards 2012- Best organisation for information security practice.
CNBC TV18’s Indiabest banks and Financial institutions Awards 2012 – Best
Private Sector Bank.
2011
‘ Financial Express Best Bank Survey 2010-11 – Best in Strength and Soundness and 2nd Best in the Private Sector.
‘ CNBC TV18’s Best Bank & Financial Institution Awards – Best Bank and Mr. Aditya Puri, for outstanding finance professional.
‘ Dun & Bradstreet Banking Awards 2011 – Best private sector bank – SME Financing.
‘ ISACA 2011 award for IT Governance – Best practices in IT Governance and IT Security.
‘ IBA Productivity Excellence Awards 2011 – New Channel Adopter (Private Sector).
‘ DSCI (Data Security Council of India) Excellence Awards 2011 – Security in bank.
‘ FINANCE ASIA Country Awards 2011: India – Best bank, best cash management bank and best trade finance bank.
‘ Asian Banker – Strongest bank in Asia Pacific.
‘ Bloomberg UTV’s Financial Leadership Awards 2011 – Best bank.
‘ IBA Banking Technology Awards 2010 – Technology bank of the year, best online bank, best customer initiative, best use of business intelligence, best risk management system and runners up – best financial inclusion.
‘ IDC FIIA Awards 2011 – Excellence in customer experience.
2010
‘ Outlook Money 2010 Awards – Best Bank.
‘ Business world Best Bank Awards 2010 – Best Bank (Large).
‘ Teacher’s Achievement Awards 2010 (Business) – Mr. Aditya Puri
‘ The Banker and PWM 2010 Global Private Banking Awards – Best Private Bank in India.
‘ Economic Times Awards for Corporate Excellence 2010 – Business Leader of the Year – Mr. Aditya Puri.
‘ Forbes Asia – Fab 50 Companies – 5th year in a row.
‘ NDTV Business Leadership Awards 2010 – Best private sector bank
‘ The Banker Magazine – World’s Top 1,000 Banks.
‘ MIS Asia IT Excellence Award 2010 – BEST BOTTOM-LINE I.T. Category.
‘ FE-EVI Green Business Leadership Award – Best performer in the banking category.
‘ Celent’s 2010 Banking Innovation Award – Model bank Award.
‘ Avaya Global Connect 2010 – Customer Responsiveness Award – Banking & Financial Services category.
‘ Forbes Top 2000 Companies – HDFC Bank at 632nd position and among 130 global high performers.
‘ Financial Express – Ernst & Young Survey 2009-10 – Best new private sector bank, Best in growth and Best in strength.
‘ Asian Banker Excellence Awards 2010 – Best retail bank in India, Excellence in automobile lending, Best M&A integration and technology implementation.
2009
‘ Business Standard Best Banker Award – Mr. Aditya Puri, MD, HDFC Bank.
‘ Fe Best Bank Awards 2009 – Best Innovator of the year award for its MD Mr. Aditya Puri – Second Best Private Bank in India – Best in Strength and Soundness Award.
‘ Euromoney Awards 2009 – ‘Best Bank in India’.
‘ Economic Times Brand Equity & Nielsen Research annual survey 2009 – Most Trusted Brand – Runner Up.
‘ Asia Money 2009 Awards – ‘Best Domestic Bank in India’.
‘ IBA Banking Technology Awards 2009 – ‘Best IT Governance Award – Runner up’ .
‘ Global Finance Award – ‘Best Trade Finance Bank in India for 2009.
‘ IDRBT Banking Technology Excellence Award 2008 – ‘Best IT Governance and Value Delivery’.
‘ Asian Banker Excellence in Retail Financial Services – ‘Asian Banker Best Retail Bank in India Award 2009 ‘ .
2008
‘ Finance Asia Country Awards for Achievement 2008 – ‘Best Bank and Best Cash Management Bank’.
‘ CNN-IBN – ‘Indian of the Year (Business)’.
‘ Nasscom IT User Award 2008 – ‘Best IT Adoption in the Banking Sector’.
‘ Business India – ‘Best Bank 2008’.
‘ Forbes Asia – Fab 50 companies in Asia Pacific.
‘ Asian Banker Excellence in Retail Financial Services – Best Retail Bank 2008.
‘ Microsoft & Indian Express Group – Security Strategist Award 2008
‘ Global HR Excellence Awards – Asia Pacific HRM Congress: – ‘Employer Brand of the Year 2007 -2008’ Award – First Runner up, & many more.
‘ Business Today – ‘Best Bank’ Award.
Conclusion
After a gap of five years, HDFC Bank has emerged as the best private sector bank because of good asset quality, high loan growth, a healthy capital adequacy ratio and an improvement in returns on capital employed. The capital adequacy ratio which stood at 15.7% during the year 2009 has increased to 16.8% in 2013. Similarly the returns on capital employed which was 34, 32,730 lacs during 2009 has grown up to 96, 96,648 lacs in 2013. The bank has consistently outperformed the industry’s loan growth in the past, growing 6-10 percentage points higher. In fact the asset quality of a bank cannot be judged by taking into consideration its return on assets alone but also its percentage of net NPAs. The return on assets which was 1.3% during 2009 has increased to 1.9% in 2013. The percentage of net NPAs which was 0.6% during 2009 has de-grown by 0.4% and is at 0.2% in 2013.But in the September quarter, its loan book grew 16 per cent, lower than the 17.9 per cent growth for the banking sector. During the quarter, many companies heavily resorted to relatively cheaper bank borrowings instead of bond markets to finance working capital needs. So, why did HDFC Bank not capitalise on this rush? One, given the increasing cost of funds, it chose to grow its corporate loan book selectively. After the July measures, the bank’s fixed deposit rates went up 75-100 basis points for tenures up to a year, faster than the rise in yields. As normalcy returns to the money markets, the bank should again be able to outperform the industry. Next, on the retail side; home loans grew only 5 per cent, with the bank not buying back loans from parent HDFC. This impacted overall loan growth by 1-1.5 per cent. Under the arrangement with HDFC, the bank has the option of purchasing back home loans originated by it. The bank expects this to normalise in the coming quarters.
PROFILE OF STUDY LOCATION
Salem is a city and a corporation in Salem district in the Indian state of Tamil Nadu. Located in the north central part of the southernmost state of India, it is the fourth largest city of Tamil Nadu, after Chennai, Coimbatore and Madurai. Almost completely surrounded by hills, it is also a part of the Kongunadu (Tiruppur and Coimbatore) region.
Salem is at the base of the renowned tourist destination of Yercaud at Shervarayan hills, which offers breathtaking views both along the ride up the hill and from the peak. There are also remote sites of beauty such as Killiyur Falls. Yercaud is at an altitude of 1600 meters above mean sea level.
The city is surrounded by a natural amphitheatre of hills formed by the Nagaramalai to the North, the Jeragmalai to the South, the Kanjanmalai to the West, and Godhumalai to the East. It is divided by the Thirumanimuthar in the main division. The fort is the oldest building in the city.
History
The name Salem appears to have been derived from Sela or Shalya or Sayilam which are found in inscriptions referring to the country around the hills. Local folklore believes Salem to be the birthplace of the Tamil poetess Avvaiyar. Inscriptions from the Ganga dynasty have been recovered from parts of the district.
Salem along with Coimbatore remained under the Madurai Nayaks. Later, in the early 18th century, it came under Hyder Ali after a long fight known as the Mysore-Madurai war. Salem was then taken from Hyder Ali by Colonel Wood in the beginning of 1768. It was recaptured by Hyder towards the end of the year 1772. Under Lord Clive in 1799, it was again occupied by a detachment of the regiment stationed at Sankari Drug (pronounced as droog) and remained a military station until 1861 when the troops were altogether withdrawn.
Many great personalities including Salem Ramasamy Mudaliar, C.Vijayaraghavachariar, Pagadala Narasimhalu Naidu, C.Rajagopalachari (Rajaji) and Dr.P.Subbarayan started their political careers in Salem.
Geography: Salem District Geographical area is 5205 sq. kms
North Latitude ‘ Between 11014′ and 12053’
East Longitude ‘ Between 77044′ and 78050’
Economy
Salem is one of the largest producers of traditional silver anklets, which are popular among women
Salem boosts large textile, automotive, poultry and sago industries.
Salem has one of the largest Magnesite deposits in India. Companies like Dalmia and TANMAG have mines here.
The Leigh Bazar market is one of the largest regional markets for agro products.
Salem had an active film production with farmer Modern Theatres Studios being the hub of Tamil film production. Now defunct, Modern Theatres produced some of the most successful Tamil films, in which many veteran actors appeared, including farmer Chief Minister M.G. Ramachandran. However, there are presently no studios in Salem.
Major industrial units in and around Salem
‘ Salem Steel Plant
‘ SISCOL
‘ MALCO
‘ Chemplast SANMAR
‘ Burn Standard & Co
‘ Tata Refractory
‘ Dalmia Magnesite
‘ TANMAG
‘ SAGOSERVE
‘ Indian ‘ Oil Bottling Plant
‘ POWER GRID
‘ Export commodities
‘ Textiles, yarn, granite, readymade garments, mangoes, coir products and stainless steel
‘ Export commodities
‘ Textiles, yarn, granite, readymade garments, mangoes, coir products and stainless steel
‘ Special Economic Zones (SEZ)
Being one of the fastest growing tier II cities, the Tamil Nadu government and ELCOT are planning an IT park in Salem covering about 160 acres, It comes under SEZ.
SAIL is planning a Steel SEZ inside the Salem Steel plant covering about 250 acres. There is an exclusive Electrical and Electronics Industrial Estate in the Suramangalam area of Salem city.
Religious sites
Era are several Mariamman temples in Salem. Mariamman is a Hindu goddess, an incarnation of Shakti. Every year around July the city celebrates Mariamman festival for a fortnight. During this festival, Goddess Mariamman is decorated with jewels and flower chariots and taken around the city at midnight. On the first important day of the festival, people walk on fire (note: devotees call fire as flower) with their prayers. The second day is colorful with parades of fancy dress. This is one of the best times to visit Salem. This festival is celebrated at temples at Fort, Shevapet, Ammapet, Gugai, Annadhanapatti etc. Shevapet Mariamman temple car is the biggest one among the cars of Amman temples across the state. This festival is celebrated for a week. The Kottai Marriamman temple is very famous not only in Salem but throughout Tamil Nadu.
The Sugavaneshwarar temple is also a very important shrine of Salem. Mythology records that sage Sugha Brahmarishi worshiped the lord here. Arunagirinadhar has sung a song on Lord Muruga in sugavaneshwarar temple. Kandashramam is a small hill temple for Lord Muruga. It is situated 10 km from Salem City towards Chennai Highway. Kumaragiri is a small temple for Lord Muruga. It is situated 5 km from Salem city. Two more mountain temples are in Salem for Lord Vishnu.
Salem also has a Heritage Temple called Sitthar Koil, which is located about 10 km from Salem. This is a Shiva temple which is located in the foothills of Kanja Malai. Some believers say that this temple was built by Sitthar’s which is believed that they still survive in the Mount of Kanja Malai. The famous Tamil poetess Avvayar is believed to be living in this hill.
Aragalur is located approximately 21 km from Attur, boasting two old temples and a large Buddha statue. The one day Temple car festival in summer invites many people in the region. The Kailasanatha Temple situated at Tharamangalam is very famous for its architectural beauty. The Tharamangalam temple has many beautiful sculptures. There are ancient shiva temples at Belur (Thanthondreeshwarar) and Uttamacholapuram (Karaburanathar). Ayothiappattanam located 7 km away from the city, houses a beautiful Kothandaramar temple.
A Ramakrishna Mission Ashram is located in Salem. It was started in 1928 and made a branch of the mission in 1941. Also, Eden Gardens School near Gandhi Road area has an attached prayer hall which functions as LEF.
All parts of Salem are covered by mosques. Jamia masjid in Bazaar St, Meltheru and Keeltheru Mosques in Fort, mosques near railway junction and new integrated bus terminal, mosques in Ammapet, Five Roads and Gugai are the famous one. Moreover there is a famous Arabic college is located near Tamilnadu Magnesite, Salem, offering world-class Arabic studies to the students.
An Angala Parameshwari temple is situated in Kottagoundapatti near the Sellapilikuttai. There are famous churches located very near to collector’s office, Arisipalayam, Hasthampatty and Shevapet.
Education
Salem, which was once considered the most educationally backward district in Tamilnadu, now has a few good educational institutions. A state owned university, namely Periyar University which is located in Karuppur, Salem. Government Medical College and Government Nursing College are also functioning in Salem. One Government engineering and several self financing engineering colleges along with three government arts and Science Colleges and three government aided arts colleges and several self financing arts and science colleges are performing in Salem District. Vinayaka Mission University – a well known private university is functioning in Salem with medicine, engineering and management courses. Distance Education is also provided by both Periyar and Vinayaka Mission University.
Road
Three important National Highways NH7, NH47 and NH68 intersect each other at Salem. Villages, blocks and taluks are linked by state highways.
Rail
Salem is an important rail junction in South India, because of its location almost midway between Chennai, Bangalore and Coimbatore District and Erode District. Salem Rail Division was formally inaugurated on 1 November 2007. The Salem Railway Division was carved out of the Palakkad Railway Division of Kerala State, which had created dissension between the two states.
At Salem junction, most express trains pass through at night. Initiatives have been taken for a bullet train from Chennai to Coimbatore via Salem Air.
Salem Airport
Salem has a domestic airport with international standards (code FR 3241) at Kamalapuram near Omalur on NH7 towards Dharmapuri. An aviation school is also utilizing the facilities.
Salem is connected with air from Chennai Kamaraj Domestic terminals and a private operator namely Kingfishers Airways operating their flight as a regular one to connect Chennai and Salem through air through many businessmen and officials and public conveyance become made easy. Salem airport is provided with the following feature:
Number of Runways: 1 Runway Direction: 04-22 Runway length: 8000 ft (paved) Taxiways: Halfway Backtracking and continue Taxiway
Infrastructure Development and Environmental Status
Urbanization Pattern
The analysis of the trend in Urbanization Pattern shows that there has been considerable increase in urbanization. From 28.5per cent in 1981, the urban population has increase to 32.4per cent in 1991.
Urban Slum Population
There has been a steady increase in the percentage of urban slum population. It has increased from 26.25per cent in 1991 to 40.29 in 2006. This causes severe pressure on the provision of civic amenities.
Supply of Drinking Water
River and ground water are the major source of drinking water in the district. Salem Corporation, Idaippadi and Mettur Municipalities and a good number of town panchayats are covered by Cauvery water schemes. Also about 60per cent of villages are covered by water schemes Thus round the year water supply is ensured.
Domestic Waste Water Generation & Treatment
The estimated sewage generations 325.75 MLD among corporation and municipalities and 55.75 MLD and town Panchayats. Except in Salem corporation, water treatment facilities have not been established and hence there is no organized disposal of sewage water. Nature of Disposal and quantity through river water is 124.75 MLD in Municipalities and 29.47 MLD in Town Panchayats. The district also lacks underground drainage system except Salem Corporation.
Municipal Solid Waste Generation & Disposal
Solid waste generation in urban bodies is increasing day by day. Among urban bodies Salem Corporation accounts for more than 50per cent of total solid waste generation, followed by municipalities (32.5per cent). Solid waste disposal pose server environmental pressure in view of space occupation and air pollution. Scientific disposal so far has not picked up. It is understood that Salem Corporation is taking steps for scientific disposal of solid waste.
Composition of Solid Waste
The analysis of the composition of solid waste indicates that 65per cent forms compostable matters, followed by rugs (13per cent) and bricks and stones (10per cent).
Medical Facilities
There are 11 Government hospital and 70 Primary Health Centers (PHCs). The total admission capacity of Hospitals in the district is put at 862 beds. There are 1501 registered medical practitioners in the district. All the villages are having access to medical facilities.
Transport Infrastructure in Salem district finds a significant place in the transport vehicle population. Bus facilities are provided for every revenue villages in the district.
Industrial Development & Environmental Status
Number of Industries
The district has 120 medium and large scale industries and 8250 registered small scale industries. Among the industries over 500 is classified under red category and 2000 is put under orange category. Red category industries are mostly chemical, sago processing, mineral pulverizing and dying units.
Emission Inventory of Major Industries
There are 12 industries under large and medium category and about 100 mineral crushing units under SSI category have been identified with highest emission rate in terms of SPM, SO & NO. Tamilnadu Pollution Control Board is taking steps to control the emission rate by encouraging the units to install pollution control equipments.
Air pollution stressed area
The area in and around mineral pulverizing and cement factories is identified as air Pollution Stressed area
Water Quality
The analysis of characteristics of water in the district shows that the presence of dissolved oxygen, PH,Chloride, etc are above permissible level.
Discharge of Effluents
The discharge from major industries such as Chemplast, MALCO,Mettur Thermal Power station, etc. are let into Cauvery river. The discharge from Sago and dying units in Salem, Attur and Valappadi taluks are affecting the environment to a great extent.
Environment Educational Institutions
Educational & Research Institutions
The district has a environment office at Salem under Tamilnadu Pollution Control Board (TNPCB). It conducts periodic tests on water, soil and samples collected from various villages of the district. Apart from this, there is no institution of repute in the district.
Density of Population
The overall density of population in the district has increased from 398 Persons per sq.km in 1981 to 507 persons per sq.km in 1996 and 575.09 persons per sq.km in 2008.
Growth of population
The details of growth of population is given in Table 3.1 and in Charts 3.1 and 3.2
TABLE 3.1
POPULATION DETAILS OF SALEM DISTRICT
Particulars 1981 census 1991 census 2001 census 2007 ‘ 2008
Pop per cent Pop per cent Pop per cent Pop per cent
Rural 24.46 71.07 27.60 70.84 16.05 53.65 16.26 53.91
Urban 9.96 28.93 11.36 29.16 13.87 46.35 13.90 46.09
TOTAL 34.42 100 38.96 100 29.92 100 30.16 100
Male 17.66 51.31 20.12 51.65 15.51 51.84 15.63 51.82
Female 16.76 48.69 18.84 48.35 14.41 48.16 14.53 48.18
Source: www.salem.tn.nic.in
Table shows that the growth of population has increased from 1981 to 1991 but declined from 1991 to 2001 because of the bifurcation of aggregated Salem District into Namakkal and Salem Districts
Population Below Poverty Line (PBPL)
The analysis of Population Below Poverty Line (PBPL) indicate that the percentage is higher in rural areas than in urban areas. While the percentage of PBPL in rural areas works out to 28.06per cent of total rural population. In urban areas it works out to 30.19per cent of total urban population.
POPULATION DETAILS OF SALEM DISTRICT (in lakhs)
(RURAL AND URBAN)
Source: www.salem.tn.nic.in
POPULATION DETAILS OF SALEM DISTRICT (in lakhs)
(MALE AND FEMALE)
Source: www.salem.tn.nic.in
MIGRATION
Migration is a common phenomenon in the Salem District. Migration that occurs among the public is classified as follows.
1. Migration from the rural areas to a nearby Industrial Town or City seeking employment opportunities.
2. Migration from the villages to the nearby towns seeking education facilities to the children and in search of basic amenities. Among these two categories, migration seeking employment opportunities stands first.
Thousands of people, predominantly comprising agriculture labourers migrate to neighbouring districts and state during the agriculture lean season from the month of March ‘ May villages move especially to Tiruppur, Coimbatore, Chennai and Bangalore the metropolitan city in search of livelihood.
MAP OF SALEM DISTRICT
CHAPTER – IV
ANALYSIS OF SOCIO ECONOMIC PROFILE AND PERCEPTION TOWARDS HOUSING LOAN IN HDFC
This chapter is designed to analyse the socio economic profile of the respondents and their perception towards housing loan in HDFC bank in the study location. Further analysis has been made to know the problems in availing housing loan and analysis on association between the profile and sources of getting knowledge about the housing loan is also made elaborately.
4.1 Socio Economic Profile of the respondents
The researcher has gathered details about socio economic profile of the respondents and presented in the following table.
Table 4.1: Socio Economic Profile of the respondents
Variables Categories Frequency Percentage
Gender Male
Female
Total 370
130
500 74.00
26.00
100.00
Age Below 30 years
31 ‘ 50 years
Above 50 years
Total 195
244
61
500 39.00
48.80
12.20
100.00
Occupation Government Employee
Profession
Private Employee
Retired
Business
Total 30
188
78
32
172
500 6.00
37.60
15.60
6.40
34.40
100.00
Annual Income Less than Rs.5 Lakh
Rs.5 lakh ‘ Rs.7 Lakhs
Above Rs.7 Lakhs
Total 189
205
106
500 37.80
41.00
21.20
100.00
Educational Qualification Upto Higher Secondary
Graduates
Professional
Total 92
296
112
500 18.40
59.20
22.40
100.00
Marital Status Married
Unmarried
Total 281
219
500 56.20
43.80
100.00
Family Type Joint Family
Nuclear Family
Total 222
278
500 44.40
55.60
100.00
Number of Occupation Two
Three
More than Three
Total 59
230
211
500 11.80
46.00
42.20
100.00
Nature of Residence Urban
Rural
Total
281
219
500 56.20
43.80
100.00
Nature of House Owned
Not owned
Total 131
369
500 26.20
73.80
100.00
Source: Primary Data
Gender
From the table 4.1 it is found that out of 500 respondents, 370 respondents (74 per cent) are male and the remaining 130 respondents (26 per cent) are female. It is found that majority of the respondents (56.40 per cent) are male.
Age
It is found that (195) 89.00 per cent of respondents are in the age group of below 30 years, (244) 48.80 per cent of the respondents are in the age group of between 31and 50 years and the remaining (61) 12.20 per cent of the respondents are above 50 years of age. It is understood that majority of the respondents (48.80 per cent) are in the age group of between 31-50 years.
Occupation
Regarding the occupation of the respondents it is understood that among 500 respondents, 30 respondents (6.00 per cent) are government employees, 188 respondents (37.60 per cent) are profession, 78 respondents (15.60 per cent) are private employee, 32 respondents (6.40 per cent) are agriculture and the remaining 172 respondents (34.40 per cent) are running a business. It is found that most of the respondents (34.40 per cent) are running business.
Annual Income
From the table it is found that 37.80 per cent of the respondents earn less than Rs. 5 lakhs, (205) 41.00 per cent of the respondents’ annual income is varied between Rs. 5 lakhs and Rs.7 lakhs and the remaining 106 (21.20 per cent) respondents earn above Rs.7 lakhs per annum. It is understood that majority of the respondents’ (41.00 per cent) annual income is varied between Rs.5lakhs and Rs.7 lakhs.
Educational Qualification
It is observed that out of 500 respondents, 18.40 per cent of the respondents (92) have studied upto higher secondary level, 59.20 per cent of the respondents (296) completed graduate level education and the remaining 22.40 per cent of the respondents (112) have studied upto professional level. It is understood that most of the respondents (22.40 per cent) have studied upto graduate level.
Marital Status
Regarding the marital status of the respondents it is found that out of 500 respondents, 48.20 per cent of the respondents (241) are married category, 51.80 per cent of the respondents (259) are unmarried. It is apparent that majority of the respondents (51.80 per cent) are unmarried.
Family type
From the table it is found that (278) 55.60 per cent of the respondents are living in nuclear family and the remaining (222) 44.40 per cent of the respondents are living in joint family. It is found that majority of the respondents’ (55.60 per cent) family is nuclear family type.
Number of earning members
It is obvious from the table 4.1 that out of 500 respondents, (59) 11.80 per cent of the respondents are having two members for income generation, (230) 46.00 per cent of the respondents are having three members and the remaining (211) 42.20 per cent of the respondents are having more than three members under income earning category. It is found that majority of the respondents (46.00 per cent) are having three members under income earning category in their family.
Nature of residence
Regarding the nature of residence it is found that (281) 56.20 per cent of the respondents belong to urban area and the remaining (219) 43.80 per cent of the respondents are residing in rural area. It is understood that most of the respondents (56.20 per cent) selected from urban area for the present study.
Nature of house
From the table 4.1 it is understood that out of 500 respondents, (131) 26.20 per cent of the respondents have own house and the remaining (369) 73.80 per cent of the respondents not having own house. It is exciting to know that majority of the respondents (73.80 per cent) have not own house.
Knowledge about housing Loan
The researcher has gathered details about knowledge and awareness of the respondents about housing loan. The details are presented in the Table 4.2.
Table 4.2: Knowledge about housing Loan
Variables Categories Frequency Percentage
Knowledge about the Housing Loan Word of mouth
Reputation of Bank
Advertisement through TV
Expert advice
Advertisement through print media
Friends
Marketing representatives
Total 60
20
101
44
189
34
16
36
500 12.00
4.00
20.20
8.80
37.80
6.80
3.20
7.20
100.00
Nature of customer Existing customer
New customer
Total 148
352
500 29.60
70.40
100.00
Purpose of Housing Loan Construct a New House
Purchase a New House
Purchase a Old House
Total 360
80
60
500 72.00
16.00
12.00
100.00
Source: Primary Data
The above table shows that out of 500 respondents, 12.00 per cent of the respondents have gained knowledge about housing loan through others opinion, 4.00 per cent of the respondents have gained knowledge through reputation of bank, 20.20 per cent of the respondents through television advertisements, 8.80 per cent of the respondents through expert advice, 37.80 per cent through print media advertisements, 6.80 per cent of the respondents have gained knowledge through their friends, 3.20 per cent of the respondents through marketing representatives of HDFC bank and the remaining 7.20 per cent of the respondents have gained knowledge about housing loan of HDFC through their relatives. It is found that most of the respondents (37.80 per cent) have gained knowledge about housing loan of HDFC through advertisement in print media.
Nature of customer
The researcher has gathered details about the number of existing customers and number of new customers have availed housing loan from HDFC. It is found that out of 500 respondents 29.60 per cent are in the first category and the remaining 70.40 per cent of the customers are in the second category. It is found that 70.40 pr cent of the respondents prefer HDFC for availing housing loan and it indicates that HDFC loan services attracts more number of new customers in the study area.
Purpose of Housing Loan
From the table it is found that out of 500 respondents, (360) 72.00 per cent of the respondents have availed housing loan in HDFC for the purpose of construct a new house, (80) 16.00 per cent of the respondents have availed loan for the purpose of purchase of new house and the remaining (60) 12.00 per cent of the respondents have borrowed loan for the purpose of purchase a old house. It is note that majority (360) 72.00 per cent of the respondents have availed housing loan in HDFC for the purpose of construct a new house.
Satisfaction and Dissatisfaction issues with Housing Loan of HDFC
The researcher has gathered details about satisfaction and dissatisfaction issues with housing loan of HDFC. The result is presented in the following table.
Table 4.3
Satisfaction Level
Variables Categories Frequency Percentage
Satisfactory issue Rate of interest
Period of payment
Terms and conditions
Easy documentation
Amount granted
Support of the bank staff
Speedy processing
Total 72
58
74
60
120
70
46
500 14.40
11.60
14.80
12.00
24.00
14.00
9.20
100.00
Dissatisfactory issue Lack of transparency
Hidden charges
No proper communication from the bank
Strict procedure collection of EMI
Penalty on late payment of the EMI
Poor coordination of the bank staff
Total 78
82
95
100
85
60
500 15.60
16.40
19.00
20.00
17.00
12.00
100.00
Source: Primary Data
It is found that out of 500 respondents, (72) 14.40 per cent of the respondents are satisfied with rate of interest, (58) 11.60 per cent of the respondents are satisfied with period of payment, (74) 14.80 per cent of the respondents are satisfied with terms and conditions, (60) 12.00 per cent of the respondents are satisfied with documentation procedures, (120) 24.00 per cent of the respondents are satisfied with amount granted for housing loan, (70) 14.00 per cent of the respondents are satisfied with rapport of the bank staff and the remaining (46) 9.20 per cent of the respondents are satisfied with processing time. It is found that most of the respondents (24.00 per cent) are satisfied with amount granted for housing loan in HDFC.
Further it is found that out of 500 respondents, (78) 15.60 per cent of the respondents are not satisfied with transparency, (82) 16.40 per cent of the respondents are dissatisfied with hidden charges, (95) 19.00 per cent of the respondents have not satisfied with proper communication, (100) 20.00 per cent of the respondents are not satisfied with procedure of collection of EMI, (85) 17.00 per cent of the respondents are not satisfied with penalty on late payment of the EMI and the remaining (60) 12.00 per cent of the respondents are not satisfied on staff coordination. It is found that most of the respondents (20.00 per cent) are not satisfied with procedure followed for collection of EMI for housing loan in HDFC bank.
Motivating factors to avail housing loan from HDFC
The researcher has gathered details about factors influencing the respondents to avail housing loan from HDFC and the result is presented in the following table.
Table 4.4: Motivating factors to avail housing loan from HDFC
Factors Frequency Percentage
Cordial approach of the bank
Personal influence
Easy accessibility of the bank
Alternative advertisement of the bank
Tax benefit
Easy repayment conditions
Best choice than other sources
Period offered for payment of loan
Loan schemes
Income level of the respondents 32
30
30
55
70
80
25
60
68
50 6.40
6.00
6.00
11.00
14.00
16.00
5.00
12.00
13.60
10.00
Total 500 100.00
Source: Primary Data
The above table clearly exhibits that 6.40 per cent of the respondents have availed housing loan for cordial approach of the bank, each 6.00 per cent of the respondents have availed housing loan for personal influence and easy accessibility of the bank, 11.00 per cent of the respondents have availed housing loan due to the attraction of alternative advertisement of the bank, 14.00 per cent of the respondents have availed housing loan for tax benefit, 16.00 per cent of the respondents have availed housing loan for easy repayment conditions, 5.00 per cent of the respondents have availed housing loan in HDFC for the reason of better choice than other sources, 12.00 per cent of the respondents have availed housing loan for the reason of repayment period offered by the bank, 13.00 per cent of the respondents have availed housing loan for variety of schemes and the remaining 10.00 per cent of the respondents have availed housing loan from HDFC after considering their income level. It is clear that most of the respondents have availed housing loan in HDFC for the reason of easy repayment system.
Opinion about service quality of HDFC regarding housing loan
The researcher has analysed the opinion of the respondents about service quality of HDFC regarding housing loan. The details are presented in the table 4.5.
Table 4.5: Opinion about availing housing loan
Variables Poor Medium Good Very Good Total
Customer service 45
(9.00) 87
(17.40) 221
(44.20) 147
(29.40) 500
(100.00)
Easy approach 34
(6.80) 84
(16.80) 250
(50.00) 132
(26.40) 500
(100.00)
Information sharing 28
(5.60) 100
(20.00) 222
(44.40) 150
(30.00) 500
(100.00)
Formalities 35
(7.00) 164
(32.80) 170
(34.00) 131
(26.20) 500
(100.00)
Speed process of application 32
(6.40) 101
(20.20) 187
(37.40) 180
(36.00) 500
(100.00)
Source: Primary Data
Out of 500 respondents, (45) 9.00 per cent of the respondents opined that customer service is very poor in HDFC for housing loan, (87) 17.40 per cent of the respondents opined that the service quality is medium, (221) 44.20 per cent of the respondents said that customer service is good and the remaining (147) 29.40 per cent of the respondents mentioned that very good customer service is provided in HDFC fro housing loan. It is found that majority of the respondents (44.20 per cent) told that service quality is good in HDFC bank regarding housing loan.
Regarding the service quality of approach factor out of 500 respondents, (34) 6.80 per cent of the respondents felt that poor, (84) 16.80 per cent of the respondents opined that medium, (250) 50.00 per cent of the respondents said that the HDFC bank is easy to approach and the remaining (132) 26.40 per cent of the respondents mentioned that the service quality regarding approach factor is very good in HDFC bank. It is found that majority of the respondents (50.00 per cent) told that service quality regarding approach factor is good. Service quality in respect to information sharing out of 500 respondents, (28) 5.60 per cent of the respondents opined that sharing the information is poor, (100) 20.00 per cent of the respondents are satisfied at medium level in information sharing, (222) 44.40 per cent of the respondents said that service regarding sharing of information is good and the remaining (150) 30.00 per cent of the respondents mentioned that such service is very good in HDFC. It is found that majority (44.40 per cent) of the respondents told that service quality regarding the information sharing is good in HDFC bank for housing loan.Service quality regarding formalities for availing housing loan in HDFC out of 500 respondents, (35) 7.00 per cent of the respondents opined that the service quality is poor for sanctioning loan, (164) 32.80 per cent of the respondents opined that the service quality is medium, (170) 34.00 per cent of the respondents said that the service quality regarding formalities for sanctioning housing loan is good and the remaining (131) 26.20 per cent of the respondents mentioned that service quality regarding formalities for sanctioning housing loan is very good. It is found that majority of the respondents (34.00 per cent) told that service quality regarding formalities for sanctioning housing loan is good in HDFC bank.
Service quality regarding processing of application form for availing housing loan in HDFC bank it is found that out of 500 respondents 6.40 per cent opined that the service is poor, 20.20 percent of the respondents felt that the service is medium, 37.40 per cent of the respondents opined that the service quality regarding this aspect is good and the remaining 36.00 per cent of the respondents said that the service quality regarding processing of application form is very good. It is found that most of the respondents (37.40) have very good opinion about the speed of processing of application from in HDFC for availing housing loan.
Difficulties faced in availing housing loan in HDFC bank
The researcher has asked the respondents to mention the difficulties faced while availing housing loan in HDFC and the same is presented in the following table.
Table 4.6: Difficulties in availing housing loan
Difficulties Frequency Percentage
Tedious formalities
Arrangement of security
Documentation
Frequency visit to bank
Follow up of the loan application 145
90
70
130
65 29.00
18.00
14.00
26.00
13.00
Total 500 100.00
Source: Primary Data
From the table 4.6 it is clear that (145) 29.00 per cent of the respondents have faced difficulties in formalities, (90) 18.00 per cent of the respondents have faced difficulties in security, (70) 14.00 per cent of the respondents have faced difficulties in documentation, (130) 26.00 per cent of the respondents have faced difficulties in getting housing loan processing information and the rest of (65) 13.00 per cent of the respondents have faced difficulties in follow up of the loan application. It is found that most of the respondents (29 per cent) have faced difficulties in formalities for applying housing loan in HDFC bank in the study areas.
Opinion about problems with Housing loan in HDFC bank
The researcher has gathered overall opinion of the respondents regarding problems faced with HDFC bank for availing housing loan and the result is presented in the following table.
Table 4.7: Opinion about problems faced with HDFC banks for housing loan
Opinion Frequency Percentage
Very High
High
Medium
Low
Very Low 30
114
231
76
49 6.00
22.80
46.20
15.20
9.80
Total 500 100.00
Source: Primary Data
It is observed from the table 4.8 that out of 500 respondents, 30 respondents (6.00 per cent) felt that the problem in availing of housing loan in HDFC bank is very high, 114 respondents (22.80 per cent) felt that the problem is high, 231 respondents (46.20 per cent) opined that the problem is medium, 76 respondents (15.20 per cent) felt that the problem is low and the remaining 49 respondents (9.80 per cent) felt that the problem in connection with availing of housing loan in HDFC bank is very low. It is found that majority of the respondents (46.20 per cent) felt that the problem with HDFC bank for availing of housing loan is medium.
Overall satisfaction of the borrowers
The level of satisfaction of the borrowers is determined by seven factors viz., low rate of interest, lengthy period of repayment, best terms and conditions, easy documentation, quantum of amount granted, coordination of the bank staff and speedy processing of loan application. The level of satisfaction is measured (with the help of five point Likert’s Scale) in respect of each of the factor. Lastly overall satisfaction is measured by counting total scores secured by the borrowers (highly satisfied ‘ 5 scores, satisfied -4 scores and so on). The result is presented in the following table.
Table 4.8: Overall satisfaction of the borrowers
Satisfaction level Frequency Percentage
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied 165
225
80
18
12 33.00
45.00
16.00
3.60
2.40
Total 500 100.00
Source: Primary Data
It is found from the table 4.8 that out of 500 respondents, (165) 33.00 per cent of the respondents are highly satisfied, (225) 45.00 per cent of the respondents are satisfied, (80) 16.00 per cent of the respondents are satisfied at medium level, (18) 3.60 per cent of the respondents are dissatisfied and the remaining (12) 2.40 per cent of the respondents are highly dissatisfied with the HDFC regarding the housing loan. It is found that majority of the respondents (45.00 per cent) are satisfied with the HDFC bank fro availing housing loan in the study area.
Association between Area of the respondents and opinion about various factors of Housing loan
To know the association between area of the respondents and their opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the area of the respondents and opinion about various factors of housing loan’. To test this hypothesis independent sample’t’ test is applied and the result is presented in the following table.
Table 4.9: Area of the respondents and opinion about various factors of
Housing loan – Group Statistics
Factors Area of the Respondent N Mean Std. Deviation Std. Error Mean
Satisfactory Issue Urban 281 2.6157 1.24282 .07414
Rural 219 5.7397 .78450 .05301
Dissatisfactory Issues Urban 281 2.2456 .96373 .05749
Rural 219 4.9361 .78139 .05280
Motivating factors to avail Housing Loan from HDFC Urban 281 4.0427 1.65128 .09851
Rural 219 8.5068 1.17454 .07937
Difficulties in availing Housing Loan Urban 281 1.6477 .74671 .04454
Rural 219 4.1872 .61078 .04127
Overall Satisfaction of the borrowers Urban 281 1.4128 .49322 .02942
Rural 219 2.6941 .84186 .05689
Overall opinion about problem in obtaining housing loan in HDFC Urban 281 2.7473 .43532 .02597
Rural 219 3.3242 1.37471 .09289
From the above table it is found that the mean value of the rural respondents is more than the mean value urban respondents for all factors. The result of independent sample ‘t’ test is presented in the following table.
Table 4.10
Area of the respondents and opinion about various factors of
Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Satisfactory Issue 69.505 .000 -32.491 498 .000 -3.12407 .09615
-34.277 478.758 .000 -3.12407 .09114
Dissatisfactory Issues 22.842 .000 -33.594 498 .000 -2.69052 .08009
-34.468 497.208 .000 -2.69052 .07806
Motivating factors to avail Housing Loan from HDFC 27.371 .000 -33.879 498 .000 -4.46414 .13177
-35.289 494.092 .000 -4.46414 .12650
Difficulties in availing Housing Loan 34.794 .000 -40.802 498 .000 -2.53953 .06224
-41.819 496.821 .000 -2.53953 .06073
Overall Satisfaction of the borrowers 50.032 .000 -21.260 498 .000 -1.28125 .06027
-20.005 331.750 .000 -1.28125 .06405
Overall opinion about problem in
obtaining housing loan in HDFC 435.702 .000 -6.623 498 .000 -.57687 .08710
-5.981 252.206 .000 -.57687 .09646
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the area of the respondents and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their nature of area.
Association between Gender and opinion about various factors of Housing loan
To know the association between gender of the respondents and their opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the gender of the respondents and opinion about various factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.11
Gender of the respondents and opinion about various factors
of Housing loan – Group Statistics
Factors Gender of the Respondent N Mean Std. Deviation Std. Error Mean
Satisfactory Issue Male 370 3.1892 1.48776 .07735
Female 130 6.2462 .63565 .05575
Dissatisfactory Issues Male 370 2.7081 1.18993 .06186
Female 130 5.4615 .50045 .04389
Motivating factors to avail Housing Loan from HDFC Male 370 4.8405 2.05585 .10688
Female 130 9.2923 .62810 .05509
Difficulties in availing Housing Loan Male 370 2.1486 1.12477 .05847
Female 130 4.5000 .50193 .04402
Overall Satisfaction of the borrowers Male 370 1.5541 .49774 .02588
Female 130 3.1692 .79863 .07004
Overall opinion about problem in obtaining housing loan in HDFC Male 370 2.7486 .74649 .03881
Female 130 3.7154 1.27732 .11203
From the above table it is found that the mean value of the female respondents is more than the mean value male respondents for all factors. The result of independent sample’t’ test is presented in the following table.
Table 4.12
Gender of the respondents and opinion about various factors
of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Satisfactory Issue 136.762 .000 -22.699 498 .000 -3.05696 .13467
-32.063 480.794 .000 -3.05696 .09534
Dissatisfactory Issues 108.737 .000 -25.587 498 .000 -2.75343 .10761
-36.301 483.520 .000 -2.75343 .07585
Motivating factors to avail Housing Loan from HDFC 113.912 .000 -24.280 498 .000 -4.45177 .18335
-37.024 491.814 .000 -4.45177 .12024
Difficulties in availing Housing Loan 91.601 .000 -23.032 498 .000 -2.35135 .10209
-32.125 472.051 .000 -2.35135 .07319
Overall Satisfaction of the borrowers 6.319 .012 -26.824 498 .000 -1.61518 .06021
-21.631 165.536 .000 -1.61518 .07467
Overall opinion about problem in
obtaining housing loan in HDFC 118.926 .000 -10.373 498 .000 -.96674 .09320
-8.154 161.008 .000 -.96674 .11856
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the gender of the respondents and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their gender.
Association between Nature of customer and opinion about various factors of Housing loan
To know the association between nature of customer and their opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the nature of customer and opinion about various factors of housing loan’. To test this hypothesis independent sample’t’ test is applied and the result is presented in the following table.
Table 4.13
Nature of customer and opinion about various factors
of Housing loan – Group Statistics
Factors Nature of customer of HDFC N Mean Std. Deviation Std. Error Mean
Satisfactory Issue Existing customer 148 1.6351 .69153 .05684
New customer 352 4.9716 1.23772 .06597
Dissatisfactory Issues Existing customer 148 1.4730 .50096 .04118
New customer 352 4.2443 1.12848 .06015
Motivating factors to avail Housing Loan from HDFC Existing customer 148 2.7500 1.18881 .09772
New customer 352 7.3636 1.76339 .09399
Difficulties in availing Housing Loan Existing customer 148 1.0203 .14140 .01162
New customer 352 3.4915 1.05676 .05633
Overall Satisfaction of the borrowers Existing customer 148 1.0000 .00000 .00000
New customer 352 2.3835 .80104 .04270
Overall opinion about problem in obtaining housing loan in HDFC Existing customer 148 2.5203 .50129 .04121
New customer 352 3.2017 1.09477 .05835
From the above table it is found that the mean value of the new customers is more than the mean value of existing customers who have availed housing loan in HDFC for all factors. The result of independent sample ‘t’ test is presented in the following table.
Table 4.14
Nature of customers and opinion about various factors
of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Satisfactory Issue 26.389 .000 -30.822 498 .000 -3.33646 .10825
-38.314 460.101 .000 -3.33646 .08708
Dissatisfactory Issues 93.217 .000 -28.698 498 .000 -2.77135 .09657
-38.019 496.631 .000 -2.77135 .07289
Motivating factors to avail Housing Loan from HDFC 64.123 .000 -29.157 498 .000 -4.61364 .15824
-34.028 401.045 .000 -4.61364 .13558
Difficulties in availing Housing Loan 467.883 .000 -28.326 498 .000 -2.47121 .08724
-42.968 379.885 .000 -2.47121 .05751
Overall Satisfaction of the borrowers 229.039 .000 -21.000 498 .000 -1.38352 .06588
-32.404 351.000 .000 -1.38352 .04270
Overall opinion about problem in
obtaining housing loan in HDFC 36.761 .000 -7.256 498 .000 -.68143 .09391
-9.539 494.646 .000 -.68143 .07143
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the nature of customer and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their experience with bank as new and old customers.
Association between Type of house and opinion about various factors of Housing loan
The researcher has classified the respondents based on the type of house they owned. To know the association between type of house owned by the respondents and their opinion about various factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the type of house of the respondents and opinion about various factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.15
Type of house of the respondents and opinion about various factors
of Housing loan – Group Statistics
Factors Own House or Not N Mean Std. Deviation Std. Error Mean
Satisfactory Issue Yes 131 1.4580 .51530 .04502
No 369 4.8808 1.27769 .06651
Dissatisfactory Issues Yes 131 1.4046 .49269 .04305
No 369 4.1409 1.19859 .06240
Motivating factors to avail Housing Loan from HDFC Yes 131 2.5802 1.15661 .10105
No 369 7.2114 1.85735 .09669
Difficulties in availing Housing Loan Yes 131 1.0000 .00000 .00000
No 369 3.3848 1.14369 .05954
Overall Satisfaction of the borrowers Yes 131 1.0000 .00000 .00000
No 369 2.3198 .83449 .04344
Overall opinion about problem in obtaining housing loan in HDFC Yes 131 2.4580 .50015 .04370
No 369 3.1924 1.07002 .05570
From the above table it is found that the mean value of the respondents who are not having own house is more than the mean value of customers who have own house. The result of independent sample ‘t’ test is presented in the following table.
Table 4.16
Type of house of customers and opinion about various factors
of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Satisfactory Issue 63.651 .000 -29.797 498 .000 -3.42274 .11487
-42.615 490.809 .000 -3.42274 .08032
Dissatisfactory Issues 80.639 .000 -25.367 498 .000 -2.73634 .10787
-36.097 488.444 .000 -2.73634 .07580
Motivating factors to avail Housing Loan from HDFC 71.207 .000 -26.747 498 .000 -4.63123 .17315
-33.113 368.022 .000 -4.63123 .13986
Difficulties in availing Housing Loan 437.819 .000 -23.851 498 .000 -2.38482 .09999
-40.055 368.000 .000 -2.38482 .05954
Overall Satisfaction of the borrowers 178.201 .000 -18.090 498 .000 -1.31978 .07296
-30.380 368.000 .000 -1.31978 .04344
Overall opinion about problem in
obtaining housing loan in HDFC 27.078 .000 -7.564 498 .000 -.73440 .09709
-10.373 463.450 .000 -.73440 .07080
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the type of house of the customers and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their nature of house.
Association between Marital status and opinion about various factors of Housing loan
The researcher has classified the respondents based on their marital status. To know the association between marital status of the respondents and their opinion about various factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between marital status of the respondents and their opinion about various factors of housing loan’. To test this hypothesis independent sample’t’ test is applied and the result is presented in the following table.
Table 4.17
Marital status of the respondents and their opinion about various factors
of Housing loan – Group Statistics
Factors Marital status N Mean Std. Deviation Std. Error Mean
Satisfactory Issue Married 241 2.3154 1.06073 .06833
Unmarried 259 5.5367 .88572 .05504
Dissatisfactory Issues Married 241 2.0124 .81385 .05242
Unmarried 259 4.7375 .87636 .05445
Motivating factors to avail Housing Loan from HDFC Married 241 3.7178 1.56100 .10055
Unmarried 259 8.1197 1.41049 .08764
Difficulties in availing Housing Loan Married 241 1.4232 .54325 .03499
Unmarried 259 4.0039 .70710 .04394
Overall Satisfaction of the borrowers Married 241 1.3154 .46562 .02999
Unmarried 259 2.5869 .81363 .05056
Overall opinion about problem in obtaining housing loan in HDFC Married 241 2.7054 .45681 .02943
Unmarried 259 3.2741 1.26910 .07886
From the above table it is found that the mean value of the unmarried respondents is more than the mean value of married customers in opinion about all factors of housing loan. The result of independent sample ‘t’ test is presented in the following table.
Table 4.18
Marital status and opinion about various factors
of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Satisfactory Issue 16.321 .000 -36.953 498 .000 -3.22133 .08717
-36.716 468.856 .000 -3.22133 .08774
Dissatisfactory Issues 5.305 .022 -35.955 498 .000 -2.72500 .07579
-36.051 497.998 .000 -2.72500 .07559
Motivating factors to avail Housing Loan from HDFC 3.960 .067 -33.121 498 .000 -4.40185 .13290
-33.000 483.561 .000 -4.40185 .13339
Difficulties in availing Housing Loan .074 .786 -45.518 498 .000 -2.58062 .05669
-45.943 481.051 .000 -2.58062 .05617
Overall Satisfaction of the borrowers 61.608 .000 -21.239 498 .000 -1.27152 .05987
-21.630 416.154 .000 -1.27152 .05878
Overall opinion about problem in
obtaining housing loan in HDFC 223.467 .000 -6.572 498 .000 -.56874 .08654
-6.757 328.015 .000 -.56874 .08417
From the above results it is found that the significance value is less than the acceptable level of 0.05 for four factors namely Satisfactory Issue, Dissatisfactory Issues, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC and the significance level is more than the acceptable level of 0.05 for two factors namely Motivating factors to avail Housing Loan from HDFC and Difficulties in availing Housing Loan. Hence the null hypothesis is rejected for these four factors and accepted for two factors. It is concluded that there is a significant association between the marital status of the customers and their opinion about four factors of housing loan and there is no significant association between the marital status of the customers and their opinion about two factors of housing loan. It is inferred that the opinion of the respondents is not varied on the factors namely Motivating factors to avail Housing Loan from HDFC (p=0.67) and Difficulties in availing Housing Loan (p=0.786) when they classified based on their marital status.
Association between Age and opinion about various factors of Housing loan
To know the association between age of customers and their opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the age of customers and opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.19
Age and opinion about various factors of Housing loan
Result of ANOVA
Sum of Squares df Mean Square F Sig.
Satisfactory Issue Between Groups 1470.980 2 735.490 1231.216 .000
Within Groups 296.892 497 .597
Total 1767.872 499
Dissatisfactory Issues Between Groups 1037.971 2 518.986 1047.919 .000
Within Groups 246.141 497 .495
Total 1284.112 499
Motivating factors to avail Housing Loan from HDFC Between Groups 2673.889 2 1336.945 788.109 .000
Within Groups 843.109 497 1.696
Total 3516.998 499
Difficulties in availing Housing Loan Between Groups 847.381 2 423.691 1145.553 .000
Within Groups 183.819 497 .370
Total 1031.200 499
Overall Satisfaction of the borrowers Between Groups 323.036 2 161.518 789.896 .000
Within Groups 101.626 497 .204
Total 424.662 499
Overall opinion about problem in obtaining housing loan in HDFC Between Groups 230.446 2 115.223 207.820 .000
Within Groups 275.554 497 .554
Total 506.000 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the age of the respondents and their opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their age.
Association between Occupation and opinion about various factors of Housing loan
To know the association between occupation of the respondents and their opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between occupation of the respondents and opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.20: Occupation and opinion about various factors of Housing loan
Sum of Squares df Mean Square F Sig.
Satisfactory Issue Between Groups 1494.731 4 373.683 677.206 .000
Within Groups 273.141 495 .552
Total 1767.872 499
Dissatisfactory Issues Between Groups 1078.527 4 269.632 649.208 .000
Within Groups 205.585 495 .415
Total 1284.112 499
Motivating factors to avail Housing Loan from HDFC Between Groups 3167.936 4 791.984 1123.102 .000
Within Groups 349.062 495 .705
Total 3516.998 499
Difficulties in availing Housing Loan Between Groups 926.346 4 231.587 1093.286 .000
Within Groups 104.854 495 .212
Total 1031.200 499
Overall Satisfaction of the borrowers Between Groups 260.929 4 65.232 197.211 .000
Within Groups 163.733 495 .331
Total 424.662 499
Overall opinion about problem in obtaining housing loan in HDFC Between Groups 71.840 4 17.960 20.477 .000
Within Groups 434.160 495 .877
Total 506.000 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between occupation of the respondents and their opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their occupation.
Association between Annual Income and opinion about various factors of Housing loan
To know the association between annual income of the respondents and their opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between annual income of the respondents and their opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.21
Annual Income and opinion about various factors of Housing loan
Result of ANOVA
Sum of Squares df Mean Square F Sig.
Satisfactory Issue Between Groups 1512.948 2 756.474 1474.822 .000
Within Groups 254.924 497 .513
Total 1767.872 499
Dissatisfactory Issues Between Groups 1062.334 2 531.167 1190.335 .000
Within Groups 221.778 497 .446
Total 1284.112 499
Motivating factors to avail Housing Loan from HDFC Between Groups 2833.487 2 1416.744 1030.155 .000
Within Groups 683.511 497 1.375
Total 3516.998 499
Difficulties in availing Housing Loan Between Groups 846.321 2 423.161 1137.562 .000
Within Groups 184.879 497 .372
Total 1031.200 499
Overall Satisfaction of the borrowers Between Groups 350.429 2 175.215 1173.088 .000
Within Groups 74.233 497 .149
Total 424.662 499
Overall opinion about problem in obtaining housing loan in HDFC Between Groups 166.135 2 83.068 121.474 .000
Within Groups 339.865 497 .684
Total 506.000 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between annual income of the respondents and their opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their annual income.
Association between Educational Qualification and opinion about various factors of Housing loan
To know the association between educational qualification of the respondents and their opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between educational qualification of the respondents and their opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.22
Educational Qualification and opinion about various
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Satisfactory Issue Between Groups 1364.748 2 682.374 841.279 .000
Within Groups 403.124 497 .811
Total 1767.872 499
Dissatisfactory Issues Between Groups 976.831 2 488.416 789.970 .000
Within Groups 307.281 497 .618
Total 1284.112 499
Motivating factors to avail Housing Loan from HDFC Between Groups 2819.339 2 1409.670 1004.224 .000
Within Groups 697.659 497 1.404
Total 3516.998 499
Difficulties in availing Housing Loan Between Groups 662.062 2 331.031 445.693 .000
Within Groups 369.138 497 .743
Total 1031.200 499
Overall Satisfaction of the borrowers Between Groups 315.951 2 157.976 722.226 .000
Within Groups 108.711 497 .219
Total 424.662 499
Overall opinion about problem in obtaining housing loan in HDFC Between Groups 170.208 2 85.104 125.961 .000
Within Groups 335.792 497 .676
Total 506.000 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between educational qualification of the respondents and their opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their educational qualification.
Association between Type of Family and opinion about various factors of Housing loan
The researcher has classified the respondents based on their type of family in to two category namely joint family and nuclear family. To know the association between type of family of the respondents and their opinion about various factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between type of family of the respondents and their opinion about various factors of housing loan’. To test this hypothesis independent sample’t’ test is applied and the result is presented in the following table.
Table 4.23
Type of family of the respondents and their opinion about various factors of Housing loan – Group Statistics
Factors Type of family N Mean Std. Deviation Std. Error Mean
Satisfactory Issue Joint family 222 2.1712 .97826 .06566
Nuclear family 278 5.4317 .93893 .05631
Dissatisfactory Issues Joint family 222 1.9279 .79263 .05320
Nuclear family 278 4.6187 .95302 .05716
Motivating factors to avail Housing Loan from HDFC Joint family 222 3.5225 1.46974 .09864
Nuclear family 278 7.9748 1.46293 .08774
Difficulties in availing Housing Loan Joint family 222 1.3468 .47704 .03202
Nuclear family 278 3.8885 .81401 .04882
Overall Satisfaction of the borrowers Joint family 222 1.2568 .43783 .02939
Nuclear family 278 2.5468 .79912 .04793
Overall opinion about problem in obtaining housing loan in HDFC Joint family 222 2.6802 .46746 .03137
Nuclear family 278 3.2554 1.22676 .07358
From the above table it is found that the mean value of nuclear family type of respondents is more than the mean value of joint family type of respondents regarding all factors of housing loan. The result of independent sample’t’ test is presented in the following table.
Table 4.24
Type of family and opinion about various factors
of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Satisfactory Issue 1.026 .312 -37.868 498 .000 -3.26048 .08610
-37.694 464.988 .000 -3.26048 .08650
Dissatisfactory Issues 18.449 .000 -33.763 498 .000 -2.69078 .07970
-34.460 497.163 .000 -2.69078 .07808
Motivating factors to avail Housing Loan from HDFC .337 .562 -33.743 498 .000 -4.45230 .13195
-33.725 472.877 .000 -4.45230 .13202
Difficulties in availing Housing Loan 22.463 .000 -41.209 498 .000 -2.54164 .06168
-43.534 459.882 .000 -2.54164 .05838
Overall Satisfaction of the borrowers 73.123 .000 -21.599 498 .000 -1.29001 .05972
-22.946 445.491 .000 -1.29001 .05622
Overall opinion about problem in
obtaining housing loan in HDFC 159.641 .000 -6.612 498 .000 -.57522 .08699
-7.191 371.497 .000 -.57522 .07999
From the above results it is found that the significance value is less than the acceptable level of 0.05 for four factors namely, Dissatisfactory Issues, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC. Further it is found that significance level is more than the acceptable level of 0.05 for two factors namely Satisfactory Issue (p=0.312) and Motivating factors to avail Housing Loan from HDFC (p=0.562). Hence the null hypothesis is rejected for these four factors and accepted for the later two factors. It is concluded that there is a significant association between the type of family and their opinion about four factors of housing loan and there is no significant association between type of family of the respondents and their opinion about two factors namely Satisfactory Issue and Motivating factors to avail Housing Loan from HDFC. It is inferred that the opinion of the respondents is not varied on the factors namely Satisfactory Issue and Motivating factors to avail Housing Loan from HDFC, when they classified based on their type of family.
Association between purpose of loan and opinion about various factors of Housing loan
To know the association between purpose of loan and opinion about various factors namely Satisfactory Issue, Dissatisfactory Issues, Motivating factors to avail Housing Loan from HDFC, Difficulties in availing Housing Loan, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between purpose of loan and opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.25
Purpose of loan and opinion about various
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Satisfactory Issue Between Groups 957.283 2 478.642 293.472 .000
Within Groups 810.589 497 1.631
Total 1767.872 499
Dissatisfactory Issues Between Groups 815.623 2 407.812 432.630 .000
Within Groups 468.489 497 .943
Total 1284.112 499
Motivating factors to avail Housing Loan from HDFC Between Groups 2035.717 2 1017.859 341.512 .000
Within Groups 1481.281 497 2.980
Total 3516.998 499
Difficulties in availing Housing Loan Between Groups 594.915 2 297.458 338.853 .000
Within Groups 436.285 497 .878
Total 1031.200 499
Overall Satisfaction of the borrowers Between Groups 279.937 2 139.969 480.666 .000
Within Groups 144.725 497 .291
Total 424.662 499
Overall opinion about problem in obtaining housing loan in HDFC Between Groups 229.019 2 114.510 205.470 .000
Within Groups 276.981 497 .557
Total 506.000 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between purpose of availing loan by the respondents and their opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on the purpose of availing housing loan from HDFC bank in the study area.
Association between source of knowledge about housing loan and opinion about various factors of Housing loan
The researcher has classified the respondents based on their source of getting knowledge about housing loan. To know the association between source of knowledge about housing loan and opinion about various factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between source of knowledge about housing loan and opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.26
Source of knowledge about housing loan and opinion about various
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Satisfactory Issue Between Groups 1426.193 7 203.742 293.378 .000
Within Groups 341.679 492 .694
Total 1767.872 499
Dissatisfactory Issues Between Groups 1041.057 7 148.722 301.049 .000
Within Groups 243.055 492 .494
Total 1284.112 499
Motivating factors to avail Housing Loan from HDFC Between Groups 2808.621 7 401.232 278.674 .000
Within Groups 708.377 492 1.440
Total 3516.998 499
Difficulties in availing Housing Loan Between Groups 738.825 7 105.546 177.610 .000
Within Groups 292.375 492 .594
Total 1031.200 499
Overall Satisfaction of the borrowers Between Groups 332.017 7 47.431 251.885 .000
Within Groups 92.645 492 .188
Total 424.662 499
Overall opinion about problem in obtaining housing loan in HDFC Between Groups 318.742 7 45.535 119.637 .000
Within Groups 187.258 492 .381
Total 506.000 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between source of knowledge of the respondents about housing loan and their opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on the source of knowledge about housing loan of HDFC bank.
Association between number of occupation of the respondents and their opinion about various factors of Housing loan
The researcher has classified the respondents based on the number of occupations of the respondents. Today most of the people are involved in more than one occupation to meet their expenses. To know the association between number of occupations of the respondents and their opinion about various factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between number of occupations of the respondents and their opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.27
Number of occupations and opinion about various
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Satisfactory Issue Between Groups 1426.193 7 203.742 293.378 .000
Within Groups 341.679 492 .694
Total 1767.872 499
Dissatisfactory Issues Between Groups 1041.057 7 148.722 301.049 .000
Within Groups 243.055 492 .494
Total 1284.112 499
Motivating factors to avail Housing Loan from HDFC Between Groups 2808.621 7 401.232 278.674 .000
Within Groups 708.377 492 1.440
Total 3516.998 499
Difficulties in availing Housing Loan Between Groups 738.825 7 105.546 177.610 .000
Within Groups 292.375 492 .594
Total 1031.200 499
Overall Satisfaction of the borrowers Between Groups 332.017 7 47.431 251.885 .000
Within Groups 92.645 492 .188
Total 424.662 499
Overall opinion about problem in obtaining housing loan in HDFC Between Groups 318.742 7 45.535 119.637 .000
Within Groups 187.258 492 .381
Total 506.000 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between number of occupations of the respondents and their opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on the number of occupations they involved.
Analysis of socio economic factors of the respondents and their opinion about service quality of HDFC bank regarding housing loan
The above part analyses the opinion of the respondents about the various factors associated with the housing loan of HDFC bank. This section analyses the opinion of the respondents about the service quality of the HDFC bank regarding the housing loan. For this purpose the researcher has gathered opinion form the respondents on the five service quality factors regarding housing loan of HDFC bank namely Process of application, Customer service, Approachability, Information sharing and Formalities for sanctioning loan. The details of analysis are presented in the following part of the study.
Association between Area of the respondents and opinion about service quality factors regarding housing loan
To know the association between area of the respondents and their opinion about various service quality factors analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the area of the respondents and opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.28
Area of the respondents and opinion about various service quality factors of Housing loan – Group Statistics
Factors Area of the Respondent N Mean Std. Deviation Std. Error Mean
Speed process of application Urban 281 3.4128 .68690 .04098
Rural 219 4.8219 .38346 .02591
Customer service Urban 281 3.3701 .74524 .04446
Rural 219 4.6712 .47084 .03182
Easy approach Urban 281 3.4591 .70148 .04185
Rural 219 4.6027 .49045 .03314
Information sharing Urban 281 3.4448 .66921 .03992
Rural 219 4.6849 .46561 .03146
Formalities for sanctioning loan Urban 281 3.1673 .62432 .03724
Rural 219 4.5982 .49139 .03321
From the above table it is found that the mean value of the rural respondents is more than the mean value urban respondents for all factors. The result of independent sample ‘t’ test is presented in the following table.
Table 4.29
Area of the respondents and opinion about various service quality factors of Housing loan – Result of independent sample ‘t’ test
Service quality Factors Levene’s Test for Equality of Variances
t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Speed process of application 171.677 .000 -27.227 498 .000 -1.40911 .05175
-29.064 455.208 .000 -1.40911 .04848
Customer service 87.974 .000 -22.562 498 .000 -1.30113 .05767
-23.800 478.909 .000 -1.30113 .05467
Easy approach 46.184 .000 -20.529 498 .000 -1.14366 .05571
-21.425 492.528 .000 -1.14366 .05338
Information sharing 62.875 .000 -23.365 498 .000 -1.24009 .05307
-24.397 492.039 .000 -1.24009 .05083
Formalities for sanctioning loan .038 .845 -27.852 498 .000 -1.43091 .05138
-28.677 497.947 .000 -1.43091 .04990
From the above results it is found that the significance value is less than the acceptable level of 0.05 for four factors except for the factor formalities for sanctioning loan. Hence the null hypothesis is rejected for the first four factors and accepted for the last factor. Hence it is concluded that there is a significant association between the area of the respondents and their opinion about four service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their nature of area. But their opinion is not varied on formalities for sanctioning housing loan. It is found that the HDFC bank treats both rural and urban customers equally in formalities for sanctioning housing loan in the study area.
Association between Type of house and opinion about various service quality factors of Housing loan
The researcher has classified the respondents based on the type of house they owned. To know the association between type of house owned by the respondents and their opinion about various service quality factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the type of house of the respondents and opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.30
Type of house of the respondents and opinion about various service quality factors of Housing loan – Group Statistics
Factors Own House or Not N Mean Std. Deviation Std. Error Mean
Speed process of application Yes 131 2.7557 .43131 .03768
No 369 4.4824 .51111 .02661
Customer service Yes 131 2.6565 .47670 .04165
No 369 4.3957 .49518 .02578
Easy approach Yes 131 2.8397 .57935 .05062
No 369 4.3577 .47998 .02499
Information sharing Yes 131 2.8092 .44918 .03924
No 369 4.4065 .49185 .02560
Formalities for sanctioning loan Yes 131 2.7328 .44418 .03881
No 369 4.1707 .71521 .03723
From the above table it is found that the mean value of the respondents who are not having own house is more than the mean value of customers who have own house. The result of independent sample ‘t’ test is presented in the following table.
Table 4.31
Type of house of customers and opinion about various service quality factors of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Speed process of application 106.168 .000 -34.540 498 .000 -1.72666 .04999
-37.430 268.371 .000 -1.72666 .04613
Customer service 5.904 .015 -34.869 498 .000 -1.73918 .04988
-35.507 236.416 .000 -1.73918 .04898
Easy approach 1.051 .306 -29.394 498 .000 -1.51803 .05164
-26.892 196.944 .000 -1.51803 .05645
Information sharing 65.744 .000 -32.648 498 .000 -1.59734 .04893
-34.088 248.332 .000 -1.59734 .04686
Formalities for sanctioning loan 28.426 .000 -21.573 498 .000 -1.43791 .06665
-26.736 369.011 .000 -1.43791 .05378
From the above results it is found that the significance value is less than the acceptable level of 0.05 for four factors except for the factor approachability (p=0.306). Hence the null hypothesis is rejected for the four factors and accepted for the factor namely approachability. Hence it is concluded that there is a significant association between the type of house of the customers and their opinion about four service quality factors of housing loan. It is inferred that opinion of the respondents regarding the four service quality factors of housing loan is varied when the respondents are classified based on their nature of house and their opinion is not varied on approachability factor when they are classified based on their nature of house. It is inferred that the HDFC bank treats the customers equally for providing housing g loan services without discriminating them based on the type of house they owned.
Association between Type of Family and opinion about various service quality factors of Housing loan
The researcher has classified the respondents based on their type of family in to two category namely joint family and nuclear family. To know the association between type of family of the respondents and their opinion about various service quality factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between type of family of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.32: Type of family of the respondents and their opinion about various service quality factors of Housing loan – Group Statistics
Factors Type of family N Mean Std. Deviation Std. Error Mean
Speed process of application Joint family 222 3.2568 .69375 .04656
Nuclear family 278 4.6475 .47862 .02871
Customer service Joint family 222 3.2027 .75471 .05065
Nuclear family 278 4.5288 .50007 .02999
Easy approach Joint family 222 3.3153 .72427 .04861
Nuclear family 278 4.4748 .50027 .03000
Information sharing Joint family 222 3.2973 .68063 .04568
Nuclear family 278 4.5396 .49933 .02995
Formalities for sanctioning loan Joint family 222 2.9459 .50942 .03419
Nuclear family 278 4.4712 .50007 .02999
From the above table it is found that the mean value of nuclear family type of respondents is more than the mean value of joint family type of respondents regarding all factors of housing loan. The result of independent sample ‘t’ test is presented in the following table.
Table 4.33; Type of family and opinion about various factors
of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Speed process of application 36.166 .000 -26.459 498 .000 -1.39073 .05256
-25.425 377.422 .000 -1.39073 .05470
Customer service 40.456 .000 -23.535 498 .000 -1.32607 .05634
-22.527 367.127 .000 -1.32607 .05887
Easy approach 50.639 .000 -21.121 498 .000 -1.15950 .05490
-20.298 377.732 .000 -1.15950 .05712
Information sharing 24.505 .000 -23.523 498 .000 -1.24227 .05281
-22.743 393.764 .000 -1.24227 .05462
Formalities for sanctioning loan 65.042 .000 -33.607 498 .000 -1.52528 .04539
-33.537 469.963 .000 -1.52528 .04548
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all service quality factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the type of family and their opinion about all service quality factors of housing loan. It is inferred that the opinion of the respondents is not varied on the service quality factors of Housing Loan when they classified based on their type of family in the study area.
Association between Gender and opinion about various factors of Housing loan
To know the association between gender of the respondents and their opinion about various service quality factors of housing loan, analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the gender of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.34: Gender of the respondents and opinion about service quality factors of Housing loan – Group Statistics
Factors Gender N Mean Std. Deviation Std. Error Mean
Speed process of application Male 370 3.6892 .81193 .04221
Female 130 5.0000 .00000 .00000
Customer service Male 370 3.5676 .76298 .03967
Female 130 5.0000 .00000 .00000
Easy approach Male 370 3.5946 .66093 .03436
Female 130 5.0000 .00000 .00000
Information sharing Male 370 3.6324 .70232 .03651
Female 130 5.0000 .00000 .00000
Formalities for sanctioning loan Male 370 3.3703 .65492 .03405
Female 130 5.0000 .00000 .00000
From the above table it is found that the mean value of the female respondents is more than the mean value male respondents for all service quality factors. The result of independent sample ‘t’ test is presented in the following table.
Table 4.35
Gender of the respondents and opinion about service quality factors
of Housing loan – Result of independent sample ‘t’ test
Service quality factors Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Speed process of application 274.667 .000 -18.395 498 .000 -1.31081 .07126
-31.054 369.000 .000 -1.31081 .04221
Customer service 339.195 .000 -21.392 498 .000 -1.43243 .06696
-36.113 369.000 .000 -1.43243 .03967
Easy approach 345.996 .000 -24.229 498 .000 -1.40541 .05801
-40.902 369.000 .000 -1.40541 .03436
Information sharing 309.525 .000 -22.187 498 .000 -1.36757 .06164
-37.455 369.000 .000 -1.36757 .03651
Formalities for sanctioning loan 540.804 .000 -28.354 498 .000 -1.62973 .05748
-47.866 369.000 .000 -1.62973 .03405
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all service quality factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the gender of the respondents and their opinion about various service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their gender in the study area.
Association between Nature of customer and their opinion about service quality factors of Housing loan
The researcher has classified the respondents based on their status i.e., existing customer or new customer to HDFC bank. To know the association between nature of customer and their opinion about various service quality factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the nature of customer and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.36
Nature of customer and opinion about service quality factors
of Housing loan – Group Statistics
Factors Nature of customer of
HDFC N Mean Std. Deviation Std. Error Mean
Speed process of application Existing customer 148 2.8851 .55357 .04550
New customer 352 4.5114 .50058 .02668
Customer service Existing customer 148 2.8041 .61344 .05042
New customer 352 4.4176 .49387 .02632
Easy approach Existing customer 148 2.9730 .65927 .05419
New customer 352 4.3750 .48481 .02584
Information sharing Existing customer 148 2.9459 .56885 .04676
New customer 352 4.4261 .49522 .02640
Formalities for sanctioning loan Existing customer 148 2.7635 .42637 .03505
New customer 352 4.2273 .68317 .03641
From the above table it is found that the mean value of the new customers are more than the mean value of existing customers on all service quality factors of housing loan in HDFC bank. The result of independent sample ‘t’ test is presented in the following table.
Table 4.37: Nature of customers and opinion about service quality factors of Housing loan – Result of independent sample’t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Speed process of application 30.331 .000 -32.121 498 .000 -1.62623 .05063
-30.830 252.935 .000 -1.62623 .05275
Customer service .015 .903 -30.961 498 .000 -1.61356 .05212
-28.367 230.857 .000 -1.61356 .05688
Easy approach .619 .432 -26.395 498 .000 -1.40203 .05312
-23.353 216.754 .000 -1.40203 .06004
Information sharing 29.281 .000 -29.166 498 .000 -1.48019 .05075
-27.567 245.184 .000 -1.48019 .05369
Formalities for sanctioning loan 43.377 .000 -24.155 498 .000 -1.46376 .06060
-28.963 427.183 .000 -1.46376 .05054
From the above results it is found that the significance value is less than the acceptable level of 0.05 for three factors. The significance value is more than the acceptable level of 0.05 for two service quality factors namely customer service (p=0.903) and approachability factor (p=0.432). Hence the null hypothesis is rejected for three factors and accepted for two factors. It is concluded that there is a significant association between the nature of customer and their opinion about service quality factors of customer service and approachability factors. It is found that the HDFC bank offers equal customer service and easy approachability for their customers regarding housing loan.
Association between Marital status and opinion about service quality factors of Housing loan
The researcher has classified the respondents based on their marital status. To know the association between marital status of the respondents and their opinion about various service quality factors of housing loan, analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between marital status of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and the result is presented in the following table.
Table 4.38
Marital status of the respondents and their opinion about service quality factors of Housing loan – Group Statistics
Factors Marital status N Mean Std. Deviation Std. Error Mean
Speed process of application Married 241 3.3154 .69532 .04479
Unmarried 259 4.6950 .46131 .02866
Customer service Married 241 3.2656 .75555 .04867
Unmarried 259 4.5676 .49637 .03084
Easy approach Married 241 3.3693 .71918 .04633
Unmarried 259 4.5097 .50087 .03112
Information sharing Married 241 3.3527 .68014 .04381
Unmarried 259 4.5792 .49465 .03074
Formalities for sanctioning loan Married 241 3.0290 .56567 .03644
Unmarried 259 4.5058 .50093 .03113
From the above table it is found that the mean value of the unmarried respondents is more than the mean value of married customers in opinion about all factors of housing loan. The result of independent sample’t’ test is presented in the following table.
Table 4.39
Marital status and opinion about various Service quality factors
of Housing loan – Result of independent sample ‘t’ test
Levene’s Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig.
(2-tailed) Mean Difference Std. Error Difference
Speed process of application 66.483 .000 -26.311 498 .000 -1.37963 .05244
-25.944 412.486 .000 -1.37963 .05318
Customer service 58.840 .000 -22.923 498 .000 -1.30201 .05680
-22.597 409.973 .000 -1.30201 .05762
Easy approach 53.099 .000 -20.690 498 .000 -1.14036 .05512
-20.433 424.997 .000 -1.14036 .05581
Information sharing 37.326 .000 -23.173 498 .000 -1.22645 .05293
-22.917 436.110 .000 -1.22645 .05352
Formalities for sanctioning loan 32.959 .000 -30.950 498 .000 -1.47675 .04771
-30.815 480.199 .000 -1.47675 .04792
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all service quality factors of housing loan. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the marital status of the customers and their opinion about service quality factors of housing loan. It is inferred that the opinion of the respondents is varied on all service quality factors when they classified based on their marital status.
Association between Age and opinion about various service quality factors of Housing loan
To know the association between age of customers and their opinion about various service quality factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between the age of customers and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.40
Age and opinion about service quality factors of Housing loan
Result of ANOVA
Sum of Squares df Mean Square F Sig.
Speed process of application Between Groups 258.202 2 129.101 426.766 .000
Within Groups 150.348 497 .303
Total 408.550 499
Customer service Between Groups 250.173 2 125.087 383.689 .000
Within Groups 162.027 497 .326
Total 412.200 499
Easy approach Between Groups 199.342 2 99.671 326.202 .000
Within Groups 151.858 497 .306
Total 351.200 499
Information sharing Between Groups 218.191 2 109.096 377.220 .000
Within Groups 143.737 497 .289
Total 361.928 499
Formalities for sanctioning loan Between Groups 328.917 2 164.458 963.121 .000
Within Groups 84.865 497 .171
Total 413.782 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the age of the respondents and their opinion about various service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their age.
Association between Occupation of the respondents and their opinion about various service quality factors of Housing loan
The researcher has classified the respondents based o their occupational status. To know the association between occupation of the respondents and their opinion about various service quality factors of housing loan, analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between occupation of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.41
Occupation and opinion about service quality factors
of Housing loan Result of ANOVA
Sum of Squares df Mean Square F Sig.
Speed process of application Between Groups 352.194 4 88.048 773.363 .000
Within Groups 56.356 495 .114
Total 408.550 499
Customer service Between Groups 316.648 4 79.162 410.090 .000
Within Groups 95.552 495 .193
Total 412.200 499
Easy approach Between Groups 265.524 4 66.381 383.519 .000
Within Groups 85.676 495 .173
Total 351.200 499
Information sharing Between Groups 293.960 4 73.490 535.220 .000
Within Groups 67.968 495 .137
Total 361.928 499
Formalities for sanctioning loan Between Groups 359.598 4 89.899 821.277 .000
Within Groups 54.184 495 .109
Total 413.782 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all service quality factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between occupation of the respondents and their opinion about various service quality factors of housing loan. It is inferred that opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their occupation.
Association between Annual Income and opinion about service quality factors of Housing loan
To know the association between annual income of the respondents and their opinion about various service quality factors of housing loan in HDFC analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between annual income of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.42
Annual Income and opinion about service quality
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Speed process of application Between Groups 276.310 2 138.155 519.229 .000
Within Groups 132.240 497 .266
Total 408.550 499
Customer service Between Groups 278.162 2 139.081 515.698 .000
Within Groups 134.038 497 .270
Total 412.200 499
Easy approach Between Groups 230.741 2 115.370 476.005 .000
Within Groups 120.459 497 .242
Total 351.200 499
Information sharing Between Groups 244.134 2 122.067 515.028 .000
Within Groups 117.794 497 .237
Total 361.928 499
Formalities for sanctioning loan Between Groups 351.361 2 175.681 1398.781 .000
Within Groups 62.421 497 .126
Total 413.782 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between annual income of the respondents and their opinion about various service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their annual income.
Association between Educational Qualification and opinion about service quality factors of Housing loan
The researcher has classified the respondents based on their educational qualifications. To know the association between educational qualification of the respondents and their opinion about various service quality factors, analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between educational qualification of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.43
Educational Qualification and opinion about service quality
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Speed process of application Between Groups 281.143 2 140.572 548.355 .000
Within Groups 127.407 497 .256
Total 408.550 499
Customer service Between Groups 314.295 2 157.148 797.739 .000
Within Groups 97.905 497 .197
Total 412.200 499
Easy approach Between Groups 283.887 2 141.943 1048.025 .000
Within Groups 67.313 497 .135
Total 351.200 499
Information sharing Between Groups 268.463 2 134.232 713.778 .000
Within Groups 93.465 497 .188
Total 361.928 499
Formalities for sanctioning loan Between Groups 292.259 2 146.130 597.637 .000
Within Groups 121.523 497 .245
Total 413.782 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between educational qualification of the respondents and their opinion about various service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their educational qualification.
Association between purpose of loan and opinion about service quality factors of Housing loan
To know the association between purpose of loan and opinion about various service quality factors of housing loan, analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between purpose of loan and opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.44
Purpose of loan and opinion about service quality
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Speed process of application Between Groups 182.953 2 91.476 201.526 .000
Within Groups 225.597 497 .454
Total 408.550 499
Customer service Between Groups 218.478 2 109.239 280.256 .000
Within Groups 193.722 497 .390
Total 412.200 499
Easy approach Between Groups 188.178 2 94.089 286.845 .000
Within Groups 163.022 497 .328
Total 351.200 499
Information sharing Between Groups 199.139 2 99.570 303.989 .000
Within Groups 162.789 497 .328
Total 361.928 499
Formalities for sanctioning loan Between Groups 253.895 2 126.947 394.607 .000
Within Groups 159.888 497 .322
Total 413.782 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between purpose of availing loan by the respondents and their opinion about various service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on the purpose of availing housing loan from HDFC bank in the study area.
Association between source of knowledge about housing loan and opinion about service quality factors of Housing loan
The researcher has classified the respondents based on their source of getting knowledge about housing loan. To know the association between source of knowledge about housing loan and opinion about various service quality factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between source of knowledge about housing loan and opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.45
Source of knowledge about housing loan and opinion about service quality factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Speed process of application Between Groups 326.513 7 46.645 279.743 .000
Within Groups 82.037 492 .167
Total 408.550 499
Customer service Between Groups 331.077 7 47.297 286.847 .000
Within Groups 81.123 492 .165
Total 412.200 499
Easy approach Between Groups 281.959 7 40.280 286.216 .000
Within Groups 69.241 492 .141
Total 351.200 499
Information sharing Between Groups 287.479 7 41.068 271.401 .000
Within Groups 74.449 492 .151
Total 361.928 499
Formalities for sanctioning loan Between Groups 273.193 7 39.028 136.580 .000
Within Groups 140.589 492 .286
Total 413.782 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between source of knowledge of the respondents about housing loan and their opinion about various service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on the source of knowledge about housing loan of HDFC bank.
Association between number of occupation of the respondents and their opinion about service quality factors of Housing loan
The researcher has classified the respondents based on the number of occupations of the respondents. To know the association between number of occupations of the respondents and their opinion about various service quality factors of housing loan analysis has been made with the following hypothesis.
Hypothesis
‘There is no significant association between number of occupations of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and the result is presented in the following table.
Table 4.46
Number of occupations and opinion about service quality
factors of Housing loan – Result of ANOVA
Sum of Squares df Mean Square F Sig.
Speed process of application Between Groups 317.269 2 158.635 863.723 .000
Within Groups 91.281 497 .184
Total 408.550 499
Customer service Between Groups 307.104 2 153.552 726.148 .000
Within Groups 105.096 497 .211
Total 412.200 499
Easy approach Between Groups 243.506 2 121.753 561.883 .000
Within Groups 107.694 497 .217
Total 351.200 499
Information sharing Between Groups 255.551 2 127.776 596.977 .000
Within Groups 106.377 497 .214
Total 361.928 499
Formalities for sanctioning loan Between Groups 295.094 2 147.547 617.845 .000
Within Groups 118.688 497 .239
Total 413.782 499
From the above results it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between number of occupations of the respondents and their opinion about various service quality factors of housing loan. It is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their number of occupations.
Association between area of the respondents and purpose of availing housing loan
The researcher has made an analysis to know the association between the area of the respondents and the purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between the area of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.47
Association between area of the respondents and
purpose of availing housing loan – Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Area of the Respondent Urban Count 281 0 0 281
% within Area of the Respondent 100.0% 0.0% 0.0% 100.0%
Rural Count 79 80 60 219
% within Area of the Respondent 36.1% 36.5% 27.4% 100.0%
Total Count 360 80 60 500
% within Area of the Respondent 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that all the respondents of urban area are availing housing loan for the purpose of construct a new house. Most of the respondents (36.50 %) of rural area are availing housing loan for the purpose of purchase a new house in the study area. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 249.493a 2 .000
Likelihood Ratio 306.573 2 .000
Linear-by-Linear Association 213.423 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 26.28.
From the above results it is found that the significance value for Chi-square value of 249.493 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between the area of the respondents and purpose of availing housing loan.
Association between area of the respondents and source of knowledge about housing loan
The researcher has made an analysis to know the association between the area of the respondents and source of knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between the area of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.48
Association between area of the respondents and
source of knowledge about housing loan – Cross table
Area of the Respondent How to come about housing loan Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Urban 60 20 101 19 81 0 0 0 281
21.4% 7.1% 35.9% 6.8% 28.8% 0.0% 0.0% 0.0% 100.0%
Rural 0 0 0 25 108 34 16 36 219
0.0% 0.0% 0.0% 11.4% 49.3% 15.5% 7.3% 16.4% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the respondents (35.90%) of urban area have gained knowledge about housing loan through TV advertisement and 49.30% of rural respondents have gained knowledge about housing loan through advertisement of print media in the study area. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 268.110a 7 .000
Likelihood Ratio 367.124 7 .000
Linear-by-Linear Association 227.612 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 7.01.
From the above results it is found that the significance value for Chi-square value of 268.110 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between the area of the respondents and source of knowledge about the housing loan.
Association between Type of house and Purpose of availing housing loan
The researcher has made an analysis to know the association between the type of house of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between Type of house and Purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.49
Association between type of house and purpose of
availing housing loan – Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Own House or Not Yes Count 131 0 0 131
% within Own House or Not 100.0% 0.0% 0.0% 100.0%
No Count 229 80 60 369
% within Own House or Not 62.1% 21.7% 16.3% 100.0%
Total Count 360 80 60 500
% within Own House or Not 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that most of the respondents (62.10%) who have not own house are availing housing loan for construct a new house and all the respondents who have own house are availing housing loan for the same purpose. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 69.030a 2 .000
Likelihood Ratio 103.090 2 .000
Linear-by-Linear Association 59.051 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 15.72.
From the above results it is found that the significance value for Chi-square value of 69.030 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between Type of house and Purpose of availing housing loan.
Association between Annual Income of the respondents and their satisfaction level towards housing loan
To know the association between annual Income of the respondents and their satisfaction level towards housing loan analysis has been made with the following hypothesis.
Hypothesis
There is no significant association between annual income of the respondents and the overall satisfaction. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.50
Level of satisfaction with the Annual Income of the respondents
– Cross table
Overall Satisfaction of the borrowers Total
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
Annual Income
(in Rs.)
Upto
5 lakhs 78 95 5 6 5 189
5-7 lakhs 50 110 35 8 2 205
Above
7 lakhs 37 20 40 4 5 106
Total 165 225 80 18 12 500
From the above results of cross table it is found that most of the respondents (110) have who earns Rs. 5-7 lakhs annual income are satisfied towards housing loan. The results of Pearson chi-square test is presented in the following table.
Chi-Square Test Result
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 187.19 8 .000
Likelihood Ratio 106.089 8 .000
Linear-by-Linear Association 1.032 1 .310
N of Valid Cases 500
a. 2 cells (20.0%) have expected count less than 5.
b. The minimum expected count is 1.90.
Since the p value is less than the acceptance level of 0.05 the null hypothesis is rejected. So, there is a significant association between annual income of the respondents and their overall satisfaction towards housing loan.
Association between annual income of the respondents and their satisfactory factors towards housing loan
To know the association between annual Income of the respondents and their satisfactory factors towards housing loan analysis has been made with the following hypothesis.
Null Hypothesis
There is no significant association between annual income of the respondents and satisfactory factors in respect of the housing loan. To test this hypothesis Chi-square test has been applied and the result is presented in the following table.
Table 4. 51
Association between annual income of the respondents and their satisfactory factors towards housing loan – Cross Classification
Annual Income of Respondents
(In Rs.) Satisfactory Issues
Total
Rate
of interest Period of repayment Terms and conditions Easy documentation Amount granted Support of the bank staff Speedy processing
Upto 5 lakhs 18 33 20 36 45 25 12 189
5-7 lakhs 30 20 28 10 60 30 27 205
Above 7 lakhs 24 5 26 14 15 15 7 106
Total 72 58 74 60 120 70 46 500
From the above results of cross table it is found that most of the respondents (60) who earn Rs. 5-7 lakhs annual income are satisfied towards amount of housing loan granted by the HDFC bank in the study area. The results of Pearson chi-square test is presented in the following table.
Chi-Square Test Result
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 77.931 12 .027
Likelihood Ratio 94.518 12 .000
Linear-by-Linear Association 74.671 1 .000
N of Valid Cases 500
a. 0 cells (.0%) have expected count less than 5.
b. The minimum expected count is 19.00.
Since the ‘p’ valve is more than the acceptance level of 0.05 (p=0.27), the null hypothesis is accepted and it is concluded that there is no significant association between annual income of the respondents and satisfactory issues in respect of the housing loan.
Association between annual income of the respondents and their dissatisfactory factors towards housing loan
To know the association between annual Income of the respondents and their dissatisfactory factors towards housing loan analysis has been made with the following hypothesis.
Null Hypothesis
There is no significant association between annual income of the respondents and dissatisfactory factors in respect of housing loan. To test this hypothesis Chi-square test has been applied and the result is presented in the following table.
Table 4. 52
Association between annual income of the respondents and their dissatisfactory factors towards housing loan – Cross Classification
Annual Income of the Respondents
(in Rs.) Dissatisfactory Issues
Total
Lack of transparency
Hidden charges
No proper communication form the bank
Strict procedure of collection of EMI
Penalty on late payment of the EMI Poor coordination of the bank staff
Upto 5 lakhs 30 40 50 30 50 25 225
5-7 lakhs 18 22 15 25 30 10 120
Above 7 lakhs 30 20 30 45 5 25 155
Total 78 82 95 100 85 60 500
From the above results of cross table it is found that most of the respondents (50) who earn upto Rs. 5 lakhs annual income are dissatisfied on penalty on late payment of the EMI. The results of Pearson chi-square test is presented in the following table.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 67.23 12 .038
Likelihood Ratio 71.5 12 .000
Linear-by-Linear Association 72.32 1 .000
N of Valid Cases 500
a. 0 cells (.0%) have expected count less than 5.
b. The minimum expected count is 16.00
Since the ‘p’ valve is more than the acceptance level of 0.05 (p=0.38), the null hypothesis is accepted and it is concluded that there is no significant association between annual income of the respondents and dissatisfactory issues in respect of the housing loan.
Association between age and difficulties faced by the respondents for availing housing loan
To know the association between age of the respondents and difficulties faced for availing housing loan analysis has been made with the following hypothesis.
Null Hypothesis
‘There is no significant association between age of the respondents and difficulties faced while availing housing loan’. To test this hypothesis’t’ test is applied and the result is presented in the following table.
Table 4.53
ANOVA Results
Difficulties Factors Age
(in Yrs.) Mean Sour of variation Sum of Squares df Mean Square F Sig.
Tedious formalities Upto 25 2.14 Between Groups 23.849 2 11.925 6.800 0.001*
25-50 2.28 Within Groups 696.148 397 1.754
Above 50 2.76 Total 719.997 399
Total 2.38
Arrangement of security Upto 25 2.24 Between Groups 21.412 2 10.706 8.422 0.000*
25-50 2.36 Within Groups 504.685 397 1.271
Above 50 2.44 Total 526.098 399
Total 2.35
Documentation Upto 25 2.68 Between Groups 31.843 2 15.922 9.518 0.000*
25-50 2.9 Within Groups 664.117 397 1.673
Above 50 3.42 Total 695.96 399
Total 2.99
Frequent visit to bank Upto 25 2.83 Between Groups 2.091 2 1.045 0.584 0.558
25-50 2.95 Within Groups 711.207 397 1.791
Above 50 3.41 Total 713.298 399
Total 3.05
Follow up of the loan application Upto 25 2.79 Between Groups 3.578 2 1.789 0.985 0.374
25-50 2.8 Within Groups 721.299 397 1.817
Above 50 3.01 Total 724.878 399
Total 2.86
* Significant at 1% level of significance.
** Significant at 5% level of significance.
It can be observed from the above table that, the age group of the respondents has significant impact on the difficulties factors, except the frequent visit and follow up factors. As the p < the 0.05, the null hypothesis is rejected, so there is significant association between the age group of the respondents and difficulties factors of tedious formalities, arrangement of security and documentation. But there is no significant association (as the p> 0.05) between age group of the respondents and difficulties factors of frequent visit to the bank and follow up of loan application.
Association between type of house of the respondents and source of knowledge about housing loan
The researcher has made an analysis to know the association between the type of house of the respondents and source of knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between the type of house of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.54
Association between type of house of the respondents and
source of knowledge about housing loan – Cross table
Own house
or Not How to come about housing loan Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Yes 60 20 51 0 0 0 0 0 131
45.8% 15.3% 38.9% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
No 0 0 50 44 189 34 16 36 369
0.0% 0.0% 13.6% 11.9% 51.2% 9.2% 4.3% 9.8% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the respondents (51.20%) who not have own house gained knowledge about housing loan through advertisement of print media. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 369.425a 7 .000
Likelihood Ratio 435.133 7 .000
Linear-by-Linear Association 276.181 1 .000
N of Valid Cases 500
a. 1 cell (6.2%) have expected count less than 5.
b. The minimum expected count is 4.19.
From the above results it is found that the significance value for Chi-square value of 369.425 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between type of house of the respondents and source of knowledge about housing loan.
Association between type of family and purpose of availing housing loan
The researcher has made an analysis to know the association between the type of family of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between type of family of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.55
Association between type of family of the respondents and
Purpose of availing housing loan – Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Type of family Joint family Count 222 0 0 222
% within Type of family 100.0% 0.0% 0.0% 100.0%
Nuclear family Count 138 80 60 278
% within Type of family 49.6% 28.8% 21.6% 100.0%
Total Count 360 80 60 500
% within Type of family 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that most of the respondents (49.60%) of nuclear family and all the respondents of joint family availed housing loan for construct a new house. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 155.276a 2 .000
Likelihood Ratio 207.578 2 .000
Linear-by-Linear Association 132.827 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 26.64.
From the above results it is found that the significance value for Chi-square value of 155.276 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between type of family of the respondents and purpose of availing housing loan.
Association between type of family and source of knowledge about housing loan
The researcher has made an analysis to know the association between the type of family of the respondents and source of knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between type of family of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.56: Association between type of family of the respondents and
source of knowledge about housing loan – Cross table
Type of family How to come about housing loan
Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Joint
family 60 20 61 0 81 0 0 0 222
27.0% 9.0% 27.5% 0.0% 36.5% 0.0% 0.0% 0.0% 100.0%
Nuclear family 0 0 40 44 108 34 16 36 278
0.0% 0.0% 14.4% 15.8% 38.8% 12.2% 5.8% 12.9% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the respondents (38.80%) of nuclear family gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 214.644a 7 .000
Likelihood Ratio 293.105 7 .000
Linear-by-Linear Association 153.856 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 7.10.
From the above results it is found that the significance value for Chi-square value of 214.644 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between type of family of the respondents and source of knowledge about housing loan.
Association between gender and purpose of availing housing loan
The researcher has made an analysis to know the association between the gender of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between gender of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.57
Association between gender and purpose of availing housing loan ‘
Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Gender Male Count 360 10 0 370
% within Gender 97.3% 2.7% 0.0% 100.0%
Female Count 0 70 60 130
% within Gender 0.0% 53.8% 46.2% 100.0%
Total Count 360 80 60 500
% within Gender 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that most of the male respondents (97.30%) availing housing loan to construct a new loan. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 454.522a 2 .000
Likelihood Ratio 512.774 2 .000
Linear-by-Linear Association 411.597 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 15.60.
From the above results it is found that the significance value for Chi-square value of 454.522 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between gender of the respondents and purpose of availing housing loan.
Association between gender and source of knowledge about housing loan
The researcher has made an analysis to know the association between the gender of the respondents and source of knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between gender of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.58
Association between gender and source of knowledge about
housing loan ‘ Cross table
Gender How to come about housing loan
Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Male 60 20 101 44 145 0 0 0 370
16.2% 5.4% 27.3% 11.9% 39.2% 0.0% 0.0% 0.0% 100.0%
Female 0 0 0 0 44 34 16 36 130
0.0% 0.0% 0.0% 0.0% 33.8% 26.2% 12.3% 27.7% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the male respondents (39.20%) gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 324.550a 7 .000
Likelihood Ratio 367.938 7 .000
Linear-by-Linear Association 219.336 1 .000
N of Valid Cases 500
a. 1 cells (6.2%) have expected count less than 5.
b. The minimum expected count is 4.16.
From the above results it is found that the significance value for Chi-square value of 324.550 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between gender of the respondents and knowledge about housing loan.
Association between type of customer and purpose of availing housing loan
The researcher has made an analysis to know the association between type of customer and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between type of customer and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.59
Association between type of customer and purpose of availing
housing loan’ Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Nature of customer of HDFC Existing customer Count 148 0 0 148
% within Nature of customer of HDFC 100.0% 0.0% 0.0% 100.0%
New customer Count 212 80 60 352
% within Nature of customer of HDFC 60.2% 22.7% 17.0% 100.0%
Total Count 360 80 60 500
% within Nature of customer of HDFC 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that most of the male respondents (39.20%) gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 324.550a 7 .000
Likelihood Ratio 367.938 7 .000
Linear-by-Linear Association 219.336 1 .000
N of Valid Cases 500
c. 1 cells (6.2%) have expected count less than 5.
d. The minimum expected count is 4.16.
From the above results it is found that the significance value for Chi-square value of 324.550 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between gender of the respondents and knowledge about housing loan.
Association between type of customer and knowledge about housing loan
The researcher has made an analysis to know the association between type of customer and knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between type of customer and knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.60
Association between type of customer and knowledge
about housing loan ‘ Cross table
Type
of customer How to come about housing loan
Total
Word
of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Existing
Custom- er 60 20 58 0 10 0 0 0 148
40.5% 13.5% 39.2% 0.0% 6.8% 0.0% 0.0% 0.0% 100.0%
New custom – er 0 0 43 44 179 34 16 36 352
0.0% 0.0% 12.2% 12.5% 50.9% 9.7% 4.5% 10.2% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the new customers (50.90%) gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 336.053a 7 .000
Likelihood Ratio 391.413 7 .000
Linear-by-Linear Association 258.544 1 .000
N of Valid Cases 500
a. 1 cells (6.2%) have expected count less than 5.
b. The minimum expected count is 4.74.
From the above results it is found that the significance value for Chi-square value of 336.053 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between type of customer and knowledge about housing loan.
Association between age and purpose of availing housing loan
The researcher has made an analysis to know the association between age of customers and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between age of customers and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.61
Association between age and purpose of availing housing loan
‘ Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Age 30 and below Count 195 0 0 195
% within Age 100.0% 0.0% 0.0% 100.0%
31 – 50 Years Count 165 79 0 244
% within Age 67.6% 32.4% 0.0% 100.0%
Above 50 years Count 0 1 60 61
% within Age 0.0% 1.6% 98.4% 100.0%
Total Count 360 80 60 500
% within Age 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that all the respondents of age group of below 30 have availed housing loan for the purpose of construct a new house. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 577.570a 4 .000
Likelihood Ratio 466.679 4 .000
Linear-by-Linear Association 287.993 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 7.32.
From the above results it is found that the significance value for Chi-square value of 577.570 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between age of customers and purpose of availing housing loan.
Association between age and knowledge about housing loan
The researcher has made an analysis to know the association between age of customers and knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between age of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.62
Association between age and knowledge about housing loan
‘ Cross table
Age of customer How to come about housing loan
Total
Word
of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
30 and below 60 20 58 0 57 0 0 0 195
30.8% 10.3% 29.7% 0.0% 29.2% 0.0% 0.0% 0.0% 100.0%
31 – 50 Years 0 0 43 44 132 25 0 0 244
0.0% 0.0% 17.6% 18.0% 54.1% 10.2% 0.0% 0.0% 100.0%
Above 50 years 0 0 0 0 0 9 16 36 61
0.0% 0.0% 0.0% 0.0% 0.0% 14.8% 26.2% 59.0% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the customers (54.10%) of age group of 31-50 are gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 634.628a 14 .000
Likelihood Ratio 565.502 14 .000
Linear-by-Linear Association 283.218 1 .000
N of Valid Cases 500
a. 4 cells (16.7%) have expected count less than 5.
b. The minimum expected count is 1.95.
From the above results it is found that the significance value for Chi-square value of 634.628 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between age of customers and knowledge about housing loan.
Association between marital status of the respondents and purpose of availing housing loan
The researcher has made an analysis to know the association between marital status of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between marital status of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.63
Association between marital status and purpose of availing housing loan ‘ Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Marital status Married Count 241 0 0 241
% within Marital status 100.0% 0.0% 0.0% 100.0%
Unmarried Count 119 80 60 259
% within Marital status 45.9% 30.9% 23.2% 100.0%
Total Count 360 80 60 500
% within Marital status 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that all the married respondents have availed housing loan for the purpose of construct a new house. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 180.931a 2 .000
Likelihood Ratio 235.608 2 .000
Linear-by-Linear Association 154.773 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 28.92.
From the above results it is found that the significance value for Chi-square value of 180.931 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between marital status of the respondents and purpose of availing housing loan.
Association between marital status and knowledge about housing loan
The researcher has made an analysis to know the association between marital status of customers and knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between marital status of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.64
Association between marital status and knowledge about
housing loan ‘ Cross table
Marital status How to come about housing loan
Total
Word
of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives
Relatives
Married 60 20 80 0 81 0 0 0 241
24.9% 8.3% 33.2% 0.0% 33.6% 0.0% 0.0% 0.0% 100.0%
Unmarried 0 0 21 44 108 34 16 36 259
0.0% 0.0% 8.1% 17.0% 41.7% 13.1% 6.2% 13.9% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the unmarried customers (41.70%) have gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 247.996a 7 .000
Likelihood Ratio 331.100 7 .000
Linear-by-Linear Association 181.706 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 7.71.
From the above results it is found that the significance value for Chi-square value of 247.996 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between marital status of customers and knowledge about housing loan.
Association between occupation and purpose of availing housing loan
The researcher has made an analysis to know the association between occupation of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between occupation of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.65
Association between occupation and purpose of availing housing loan ‘ Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Occupation Government employee Count 30 0 0 30
% within Occupation 100.0% 0.0% 0.0% 100.0%
Profession Count 188 0 0 188
% within Occupation 100.0% 0.0% 0.0% 100.0%
Private employee Count 78 0 0 78
% within Occupation 100.0% 0.0% 0.0% 100.0%
Agriculture Count 32 0 0 32
% within Occupation 100.0% 0.0% 0.0% 100.0%
Business Count 32 80 60 172
% within Occupation 18.6% 46.5% 34.9% 100.0%
Total Count 360 80 60 500
% within Occupation 72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that all the government employee respondents, professional respondents, private employee respondents and agriculture business respondents have availed housing loan for the purpose of construct a new house. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 370.801a 8 .000
Likelihood Ratio 427.682 8 .000
Linear-by-Linear Association 254.166 1 .000
N of Valid Cases 500
a. 3 cells (20.0%) have expected count less than 5.
b. The minimum expected count is 3.60.
From the above results it is found that the significance value for Chi-square value of 370.801 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between occupation of the respondents and purpose of availing housing loans.
Association between occupation and knowledge about housing loan
The researcher has made an analysis to know the association between occupation of customers and knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between occupation of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.66: Association between occupation and knowledge about
housing loan ‘ Cross table
Occupation How to come about housing loan
Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Government employee 10 20 0 0 0 0 0 0 30
33.3% 66.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
Profession 50 0 58 0 80 0 0 0 188
26.6% 0.0% 30.9% 0.0% 42.6% 0.0% 0.0% 0.0% 100.0%
Private employee 0 0 43 34 1 0 0 0 78
0.0% 0.0% 55.1% 43.6% 1.3% 0.0% 0.0% 0.0% 100.0%
Agriculture 0 0 0 10 22 0 0 0 32
0.0% 0.0% 0.0% 31.2% 68.8% 0.0% 0.0% 0.0% 100.0%
Business 0 0 0 0 86 34 16 36 172
0.0% 0.0% 0.0% 0.0% 50.0% 19.8% 9.3% 20.9% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the agricultural business customers (68.80%) have gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 875.651a 28 .000
Likelihood Ratio 752.328 28 .000
Linear-by-Linear Association 260.654 1 .000
N of Valid Cases 500
a. 14 cells (35.0%) have expected count less than 5.
b. The minimum expected count is .96.
From the above results it is found that the significance value for Chi-square value of 875.651 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between occupation of customers and knowledge about housing loan.
Association between annual income and purpose of availing housing loan
The researcher has made an analysis to know the association between annual income of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between annual income of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.67
Association between annual income and purpose of availing housing loan ‘ Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Annual Income Upto Rs. 5 lakhs 189 0 0 189
100.0% 0.0% 0.0% 100.0%
Rs.5 -7 lakhs 171 34 0 205
83.4% 16.6% 0.0% 100.0%
Above Rs.7 lakhs 0 46 60 106
0.0% 43.4% 56.6% 100.0%
Total 360 80 60 500
72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that all the respondents who earn upto Rs. 5 lakhs per annum and 83.40% of the respondents who earn Rs.5-7 lakhs per annum have availed housing loan for the purpose of construct a new house. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 403.637a 4 .000
Likelihood Ratio 454.882 4 .000
Linear-by-Linear Association 293.372 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 12.72.
From the above results it is found that the significance value for Chi-square value of 403.637 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between annual income of the respondents and purpose of availing housing loan.
Association between annual income and knowledge about housing loan
The researcher has made an analysis to know the association between annual income of customers and knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between annual income of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.68
Association between annual income and knowledge about
housing loan ‘ Cross table
Annual Income How to come about housing loan
Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Upto 5 lakhs 60 20 58 0 51 0 0 0 189
31.7% 10.6% 30.7% 0.0% 27.0% 0.0% 0.0% 0.0% 100.0%
Rs.5 -7 lakhs 0 0 43 44 118 0 0 0 205
0.0% 0.0% 21.0% 21.5% 57.6% 0.0% 0.0% 0.0% 100.0%
Above Rs.7 lakhs 0 0 0 0 20 34 16 36 106
0.0% 0.0% 0.0% 0.0% 18.9% 32.1% 15.1% 34.0% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the respondents (57.60%) who earn Rs. 5-7 lakhs per annum have gained knowledge about housing loan through print media advertisements. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 583.460a 14 .000
Likelihood Ratio 589.742 14 .000
Linear-by-Linear Association 285.674 1 .000
N of Valid Cases 500
a. 2 cells (8.3%) have expected count less than 5.
b. The minimum expected count is 3.39.
From the above results it is found that the significance value for Chi-square value of 583.460 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between annual income of customers and knowledge about housing loan.
Association between educational qualification and purpose of availing housing loan
The researcher has made an analysis to know the association between educational qualification of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between educational qualification of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.69: Association between educational qualification and purpose of availing housing loan ‘ Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Educational Qualification Upto Hr.Sec 92 0 0 92
100.0% 0.0% 0.0% 100.0%
Graduate 268 28 0 296
90.5% 9.5% 0.0% 100.0%
Professional level 0 52 60 112
0.0% 46.4% 53.6% 100.0%
Total 360 80 60 500
72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that all the respondents who studied upto higher secondary level education have availed housing loan for the purpose of construct a new house. The results of Pearson chi-square test is presented in the following table.
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 400.094a 4 .000
Likelihood Ratio 444.154 4 .000
Linear-by-Linear Association 275.203 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 11.04.
From the above results it is found that the significance value for Chi-square value of 400.094 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between educational qualification of the respondents and purpose of availing housing loan.
Association between educational qualification and knowledge about housing loan
The researcher has made an analysis to know the association between educational qualification of customers and knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between educational qualification of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.70
Association between educational qualification and knowledge about
housing loan ‘ Cross table
Educational Qualification How to come about housing loan Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Upto Hr.Sec 60 20 12 0 0 0 0 0 92
65.2% 21.7% 13.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
Graduate 0 0 89 44 163 0 0 0 296
0.0% 0.0% 30.1% 14.9% 55.1% 0.0% 0.0% 0.0% 100.0%
Professional level 0 0 0 0 26 34 16 36 112
0.0% 0.0% 0.0% 0.0% 23.2% 30.4% 14.3% 32.1% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the respondents (65.20%) who studied upto higher secondary education have gained knowledge about housing loan through word of mouth. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 786.688a 14 .000
Likelihood Ratio 731.926 14 .000
Linear-by-Linear Association 372.693 1 .000
N of Valid Cases 500
a. 4 cells (16.7%) have expected count less than 5.
b. The minimum expected count is 2.94.
From the above results it is found that the significance value for Chi-square value of 786.688 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between educational qualification of customers and knowledge about housing loan.
Association between number of occupations and purpose of availing housing loan
The researcher has made an analysis to know the association between number of occupations of the respondents and purpose of availing housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between number of occupations of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.71
Association between number of occupations sand purpose of availing housing loan ‘ Cross table
Purpose of housing loan Total
Construct a new house Purchase a new house Purchase a old house
Number of occupations Two 59 0 0 59
100.0% 0.0% 0.0% 100.0%
Three 230 0 0 230
100.0% 0.0% 0.0% 100.0%
More than Three 71 80 60 211
33.6% 37.9% 28.4% 100.0%
Total 360 80 60 500
72.0% 16.0% 12.0% 100.0%
From the above results of cross table it is found that all the respondents who involved in two and three occupation have availed housing loan for the purpose of construct a new house. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 266.324a 4 .000
Likelihood Ratio 323.430 4 .000
Linear-by-Linear Association 180.021 1 .000
N of Valid Cases 500
a. 0 cells (0.0%) have expected count less than 5.
b. The minimum expected count is 7.08.
From the above results it is found that the significance value for Chi-square value of 266.324 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between number of occupations of the respondents and purpose of availing housing loan.
Association between number of occupations and knowledge about housing loan
The researcher has made an analysis to know the association between number of occupations of customers and knowledge about housing loan. For this purpose the following hypothesis is framed.
Hypothesis
‘There is no significant association between number of occupations of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and the result is presented in the following table.
Table 4.72: Association between number of occupations and knowledge about housing loan ‘ Cross table
Number of occupations How to come about housing loan Total
Word of mouth Reputation of the Bank TV advertisement Expert advice Advertisement through print media Friends Marketing representatives Relatives
Two 39 20 0 0 0 0 0 0 59
66.1% 33.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
Three 21 0 101 27 81 0 0 0 230
9.1% 0.0% 43.9% 11.7% 35.2% 0.0% 0.0% 0.0% 100.0%
More than Three 0 0 0 17 108 34 16 36 211
0.0% 0.0% 0.0% 8.1% 51.2% 16.1% 7.6% 17.1% 100.0%
Total 60 20 101 44 189 34 16 36 500
12.0% 4.0% 20.2% 8.8% 37.8% 6.8% 3.2% 7.2% 100.0%
From the above results of cross table it is found that most of the respondents (66.10%) who involved in two occupations have gained knowledge about housing loan through word of mouth. The results of Pearson chi-square test is presented in the following table.
Result of Chi-Square Test
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 596.947a 14 .000
Likelihood Ratio 578.921 14 .000
Linear-by-Linear Association 303.969 1 .000
N of Valid Cases 500
a. 4 cells (16.7%) have expected count less than 5.
b. The minimum expected count is 1.89.
From the above results it is found that the significance value for Chi-square value of 596.947 is less than the acceptance level of 0.05 (p=0.00). Hence the null hypothesis is rejected and it is concluded that there is a significant association between number of occupations of customers and knowledge about housing loan.
Correlation between satisfactory level and various service quality factors
To know the correlation between satisfactory level of the respondents and various service quality factors of housing loan Karl Pearson’s co-efficient of correlation test is used and the result is presented in the following table.
Table 4.73: Correlation between satisfactory level and various service quality factors
Satisfactory Issue Speed process of application Customer service Easy approach Information sharing Formalities for sanctioning loan
Satisfactory Issue Pearson Correlation 1 .910** .911** .893** .905** .932**
Sig.
(2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Speed process of application Pearson Correlation .910** 1 .948** .920** .952** .890**
Sig.
(2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Customer service Pearson Correlation .911** .948** 1 .951** .973** .900**
Sig.
(2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Easy approach Pearson Correlation .893** .920** .951** 1 .953** .913**
Sig.
(2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Information sharing Pearson Correlation .905** .952** .973** .953** 1 .901**
Sig.
(2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Formalities for sanctioning loan Pearson Correlation .932** .890** .900** .913** .901** 1
Sig.
(2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
**. Correlation is significant at the 0.01 level (2-tailed).
From the above details it is found that there is a perfect correlation between satisfactory level and opinion about various service quality factors i.e., (p=0.00). Further it is found that there is a high positive correlation is between satisfactory issue and formalities for sanctioning housing loan (r=0.932), followed by satisfactory issue and customer service (r=0.911), satisfactory issue and speed process of application (r=0.910), satisfactory issue and information sharing (r=0.905), satisfactory issue and easy approachability (r=0.893). Hence it is suggested that HDFC bank should decrease the formalities for availing housing loan to increase the satisfaction level of the respondents.
Correlation between difficulties in availing housing loan and various service quality factors
Customers of HDFC bank are facing some difficulties while availing housing loan in the study area. To know the correlation between difficulties in availing housing loan and various service quality factors of housing loan Karl Pearson’s co-efficient of correlation test is used and the result is presented in the following table.
Table 4.74: Correlation between difficulties in availing housing loan and various service quality factors
Difficulties in availing Housing Loan Speed process of application Customer service Easy approach Information sharing Formalities for sanctioning loan
Difficulties in availing Housing Loan Pearson Correlation 1 .891** .857** .825** .860** .896**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Speed process of application Pearson Correlation .891** 1 .948** .920** .952** .890**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Customer service Pearson Correlation .857** .948** 1 .951** .973** .900**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Easy approach Pearson Correlation .825** .920** .951** 1 .953** .913**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Information sharing Pearson Correlation .860** .952** .973** .953** 1 .901**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
Formalities for sanctioning loan Pearson Correlation .896** .890** .900** .913** .901** 1
Sig. (2-tailed) .000 .000 .000 .000 .000
N 500 500 500 500 500 500
**. Correlation is significant at the 0.01 level (2-tailed).
From the above details it is found that there is a perfect correlation between difficulties in availing housing loan and opinion about various service quality factors i.e., (p=0.00). Further it is found that there is a high positive correlation is between difficulties in availing housing loan and formalities for sanctioning housing loan (r=0.896), followed by difficulties in availing housing loan and speed process of application (r=0.891), difficulties in availing housing loan and information sharing (r=0.860), difficulties in availing housing loan and customer service (r=0.857), difficulties in availing housing loan and easy approachability (r=0.825). Hence it is suggested that HDFC bank should decrease the formalities for availing housing loan to decrease the difficulties in availing housing loan.
Summary
In this chapter analysis has been made to know the association between the socio economic profile variables of the respondents and their satisfactory factors, dissatisfactory issues and opinion about the various service quality factors. Further, analysis has been made to find out the correlation between the satisfactory level of the customers towards housing loan and difficulties faced in availing housing loan in HDFC bank, opinion about various service quality factors of housing loan.
CHAPTER ‘ V
SUMMARY OF FINDINGS AND SUGGESTIONS
5.1 Introduction
Real estate is currently one of the fastest growing sectors in India. Banking sector is also registering profitable business since the last few decades, with the growth of real estate. Majority of the banks are also offering easy home loans at attractive rates to their customers. Now that getting a home loan is so easy, it seems everyone can fulfill his / her long cherished dreams of purchasing lands, building their houses and expanding their homes.
A home loan, or mortgage, is a secured loan that borrowers obtain in order to purchase a home. Because a home is the largest purchase many individuals will ever make, most borrowers utilize home loans to assist with their home purchase. Loans allow borrowers to purchase items when they don’t have the full amount available or if they do not want to use their own money to finance the purchase. For example, mortgages allow people to buy homes when they may not have otherwise been able to afford to make such a large purchase. Most loans paid for in a timely manner result in a positive notation on credit reports, meaning that borrowers may be able to qualify for larger loans at better interest rates after having successfully made loan payments.
Different types of home loans are tailored to suit the heterogeneous requirements of the customers. The description of some of the most common types of home loans is given below.
Types of Home Loans
‘ Home Purchase Loans: This is the basic home loan for the purchase of a new home.
‘ Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you.
‘ Home Construction Loan: This loan is available for the construction of a new home.
‘ Home Extension Loan: This is given for expanding or extending an existing home. For instance, you may apply for a loan for the addition of an extra room in your home and for similar cases.
‘ Home Conversion Loan: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
‘ Land Purchase Loans: This loan is available for purchase of land for both construction and investment purposes.
‘ Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home.
‘ Balance Transfer Loans: Balance transfer loans help to pay off an existing home loan and avail the option of a loan with a lower rate of interest.
‘ Refinance Loans: This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
‘ Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.
Features of Home Loan
Home loans are available on fixed rate of interest as well as floating rate of interest. In fixed rate loans, the interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The plus point of fixed rate loans is that they remain steady over the years, making at least one aspect of your monthly cash flow predictable. However, the flip side is that the lenders charge a higher rate of interest for fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the funds they are lending.
In floating rate loans, the rate of interest changes according to a set formula as interest rates fluctuate in the open market. The plus point is that lenders charge a lower rate for such loans because you are taking on some of the interest-rate risk. The downside is that interest rates may rise anytime and you can end up paying more than fixed rate loans. The type of interest you opt for will entirely depend on your personal preferences.
Statement of the Problem
The study is mainly conducted to observe the factors influencing the satisfaction level of housing loan customers of HDFC bank in Salem district. The study also scrutinizes and find out the various factors which are influencing the satisfaction level of customers while borrowing a housing loan from the bank., ie., preliminary procedures, hidden charges, processing fees, interest rates, etc. The study also focuses on the type of housing loan that has been mostly preferred by the customers and finds out the best solutions for the bank to improve their customer satisfaction. In this process, the following queries need to be reconciled.
7. Since the time of inception till date what are the achievements and other expansions gained in discharging the banking services to the housing loan borrowers?
8. What types of activities are implanted in housing loan section to satisfy the customers various needs towards housing loan?
9. What type of efficiency of a bank taken so as to propose itself as the best performer and win the confidence of the customers to enter into their bank?
10. Which type of housing loan was most preferable among the housing loan customers?
11. How far the customers are satisfied with the service of housing loan section in HDFC Bank?
12. Which factor is influencing most while taking a housing loan from HDFC bank according to the customers thought?
Objectives of the Study
Objectives are formulated in such a way that it helps to study customer satisfaction level. These formulations of objectives make the study significant and meaningful, as well as it helps to limit the area of the study. The major objectives of the study are given below.
6. To know the motivating factors of the respondents to avail the housing loan from HDFC Bank.
7. To measure the level of satisfaction of the borrowers towards housing loan.
8. To examine the satisfactory and dissatisfactory issues of housing loan borrowers of HDFC Bank.
9. To find out the difficulties faced by the borrowers while availing Housing loan from HDFC Bank.
10. To study the service quality of HDFC bank.
Hypotheses
To find out the relationship between the demographic variables of the respondents such as gender, age, marital status, educational qualification, occupation, monthly income of the respondents and their perception towards housing loan and problems faced in availing housing required number of hypotheses are framed and tested with parametric statistical tools.
Methodology and Design of the study
The present study is descriptive and analytical in nature. Designing suitable methodology and selection of analytical tools are important for a meaningful analysis of any research problem. This section is devoted to a description of the methodology, which includes sampling design, collection of data, period of study and tools of analysis.
Sources of Data
Both primary and secondary data are used for the present study. Secondary data collected from the various books, journals, reports and websites. Primary data collected from the concerned respondents of the present study using interview schedule.
Research Instrument
To analyse and study the objectives and hypotheses of the present study, interview schedule is designed to collect the data. The interview schedule has been designed with appropriate questions to fulfil the objectives of the study. The first part captures the socio economic profile of the customers and the second part captures opinion about the Housing loan, awareness about the various services of HDFC bank, factors considered for availing housing loan and problems faced in availing of housing loan in HDFC bank. The face and content validity is finalised after making consultation with the experts. Based on their feedback, it is found that all the items developed by the researcher found adequate validity in analysing the customers’ perception towards housing finance in HDFC.
Pilot Study
After finalizing the number of items in the research instrument using face and content validity tests, a pilot study is undertaken to assess the reliability of the variables included under the four dimensions. Since the researcher got favourable results from the pilot study, the present study has been undertaken.
Reliability Test
The variables constructed in the interview schedule are subject to reliability test. Cronbach Alpha test is used to measure the internal consistency of the instrument and the result of the reliability test is presented in the following table.
Result of Reliability Test – Cronbach Alpha
S. No. Dimensions Reliability coefficients
1. Factors considered for preferring HDFC for Housing Loan 0.765
2. Perception towards availing housing loan in HDFC 0.873
3. Problems faced with HDFC banks regarding housing loan 0.861
4. Awareness about the various services of HDFC bank 0.738
From the above table it is found that the reliability coefficients for the variables chosen for this study are more than 0.60, which is an acceptable value. So, the items constituting each variable under study have reasonable internal consistency.
Area of Study
The present research work is conducted within the Salem District of Tamil Nadu. The main reason for choosing Salem district is that, the researcher is located here and is familiar with the place.
Sample Size
The sample size for the present study is determined by using the G Power 3.1. For scientific research power (1-?? err prob) 0.95 and for social science research power (1-?? err prob) 0.85 is applied. The details of proposed tests and the suggested sample size are presented in the following table.
Determination of Sample Size
S.No Type of Test ?? err prob Power
(1-?? err prob) Total Sample Size
1. Z ‘ Test 0.05 0.85 495
2. F-Test – ANOVA 0.05 0.85 201
3. Correlation 0.05 0.85 96
4. Regression 0.05 0.85 42
Source: G POWER 3.1
Form the above table it is understood the highest number of 495 samples is produced for the Z test. Hence it is decided to collect data from the 500 respondents (which is more than the sample size of 495 for Z test produced by G Power 3.1).
Sampling Technique
Random sampling method is adopted for selection of sample customers. The samples are selected from the list of Housing Loan Borrowers of nine taluks of the district available in the records of the HDFC Main Branch, Salem. Out of the 1,666 borrowers (borrowed from the HDFC bank during 2012-13) 500 samples (30% of the 1,666) have been selected as per the stratified proportionate random sampling technique. The details of respondents selected form Salem district is presented in the following table:
Details of Number of respondents Selected in Salem District
Sl.No Name of
the Taluks Number of borrowers of housing loan in 2011-12
(N= 1,662) Percentage to the total No. of Sample borrowers
30% of the total borrowers = 498.6 rounded to 500
1. Attur 125 7.50 38
(7.5% of 500)
2. Edappadi 110 6.60 33
(6.6% of 500)
3. Gangavalli 98 5.89 29
(5.89% of 500)
4. Mettur 128 7.68 38
(7.68% of 500)
5. Omalur 86 5.16 26
(5.16% 0f 500)
6. Salem 848 50.90 255
(50.9% of 500)
7. Sankari 78 4.68 23
(4.68% of 500)
8. Vazhappadi 115 6.90 35
(6.9% of 500)
9. Yercaud 78 4.69 24
Total 1,666 100.00 500
Fieldwork and collection of data
The researcher himself carried out the fieldwork for collection of data. The researcher used the interview schedule (Appendix) for the collection of primary data from the customers selected for the present research work.
Data processing
After the completion of data collection work, filled up interview schedules were edited and master table was prepared to incorporate all the information available in the interview schedule. The classification, analysis and interpretation of data are done through SPSS.
Tools of Analysis
The following statistical Tools are used for analysis of data using SPSS.
6. Percentage analysis
7. t – test
8. ANOVA
9. Correlation and
10. Chi Square test
In addition to the above tests other tools such as Mean and Standard deviation also have been used to analyse the data.
Period of Study
The period of the study is from 2012 to 2013.
Limitations of the study
The following are the limitations of the present study:
3. Since the study covers only Salem district the findings of the study are limited to Salem district only.
4. As the period of study is from 2012-2013, the opinion of the customers covers this period only. Hence the opinion may change with the change of period.
5.2 Findings of the study
The following are the major findings of the study.
Socio Economic Profile of the respondents
Gender
It is found that majority of the respondents (56.40 per cent) are male.
Age
It is understood that majority of the respondents (48.80 per cent) are in the age group of between 31-50 years.
Occupation
Regarding the occupation of the respondents It is found that most of the respondents (34.40 per cent) are running business.
Annual Income
It is understood that majority of the respondents’ (41.00 per cent) annual income is varied between Rs.5lakhs and Rs.7 lakhs.
Educational Qualification
It is understood that most of the respondents (22.40 per cent) have studied upto graduate level.
Marital Status
It is apparent that majority of the respondents (51.80 per cent) are unmarried.
Family type
It is found that majority of the respondents’ (55.60 per cent) family is nuclear family type.
Number of earning members
It is found that majority of the respondents (46.00 per cent) are having three members under income earning category in their family.
Nature of residence
It is understood that most of the respondents (56.20 per cent) selected from urban area for the present study.
Nature of house
It is found that majority of the respondents (73.80 per cent) have not own house.
Knowledge about housing Loan
The researcher has gathered details about knowledge and awareness of the respondents about housing loan. It is found that most of the respondents (37.80 per cent) have gained knowledge about housing loan of HDFC through advertisement in print media.
Nature of customer
It is found that 70.40 pr cent of the respondents prefer HDFC for availing housing loan and it indicates that HDFC loan services attract more number of new customers in the study area.
Purpose of Housing Loan
It is found that majority (360) 72.00 per cent of the respondents have availed housing loan in HDFC for the purpose of construct a new house.
Satisfaction and Dissatisfaction issues with Housing Loan of HDFC
The researcher has gathered details about satisfaction and dissatisfaction issues of respondents with housing loan of HDFC. It is found that most of the respondents (24.00 per cent) are satisfied with amount granted for housing loan in HDFC.
It is found that most of the respondents (20.00 per cent) are not satisfied with procedure followed for collection of EMI for housing loan in HDFC bank.
Motivating factors to avail housing loan from HDFC
The researcher has gathered details about factors influencing the respondents to avail housing loan from HDFC and it is found that most of the respondents have availed housing loan in HDFC for the reason of easy repayment system.
Opinion about service quality of HDFC regarding housing loan
The researcher has analysed the opinion of the respondents about service quality of HDFC regarding housing loan. It is found that majority of the respondents (44.20 per cent) told that service quality is good in HDFC bank regarding housing loan.
Regarding the service quality of approach factor It is found that majority of the respondents (50.00 per cent) told that service quality regarding approach factor is good.
Service quality in respect to information sharing out of 500 respondents, majority (44.40 per cent) of the respondents told that service quality regarding the information sharing is good in HDFC bank for housing loan.
Service quality regarding formalities for availing housing loan in HDFC out of 500 respondents majority of the respondents (34.00 per cent) told that service quality regarding formalities for sanctioning housing loan is good in HDFC bank.
Service quality regarding processing of application form for availing housing loan in HDFC bank it is found that out of 500 respondents most of the respondents (37.40) have very good opinion about the speed of processing of application from in HDFC for availing housing loan.
Difficulties faced in availing housing loan in HDFC bank
The researcher has asked the respondents to mention the difficulties faced while availing housing loan in HDFC and it is found that most of the respondents (29 per cent) have faced difficulties in formalities for applying housing loan in HDFC bank .
Opinion about problems with Housing loan in HDFC bank
It is found that majority of the respondents (46.20 per cent) felt that the problem with HDFC bank for availing of housing loan is medium.
Overall satisfaction of the borrowers
The level of satisfaction of the borrowers is determined by seven factors and it is found that majority of the respondents (45.00 per cent) are satisfied with the HDFC bank fro availing housing loan in the study area.
Association between Area of the respondents and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between the area of the respondents and opinion about various factors of housing loan’.
To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the area of the respondents and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their nature of area.
Association between Gender and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between the gender of the respondents and opinion about various factors of housing loan’.
To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the gender of the respondents and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their gender.
Association between Nature of customer and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between the nature of customer and opinion about various factors of housing loan’.
To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the nature of customer and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their experience with bank as new and old customers.
Association between Type of house and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between the type of house of the respondents and opinion about various factors of housing loan’.
To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the type of house of the customers and opinion about various factors of housing loan. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their nature of house.
Association between Marital status and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between marital status of the respondents and their opinion about various factors of housing loan’.
To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for four factors namely Satisfactory Issue, Dissatisfactory Issues, Overall Satisfaction of the borrowers and Overall opinion about problem in obtaining housing loan in HDFC and the significance level is more than the acceptable level of 0.05 for two factors namely Motivating factors to avail Housing Loan from HDFC and Difficulties in availing Housing Loan. Hence the null hypothesis is rejected for these four factors and accepted for two factors.
Association between Age and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between the age of customers and opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected it is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their age.
Association between Occupation and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between occupation of the respondents and opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their occupation.
Association between Annual Income and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between annual income of the respondents and their opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their annual income.
Association between Educational Qualification and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between educational qualification of the respondents and their opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on their educational qualification.
Association between Type of Family and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between type of family of the respondents and their opinion about various factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for four factors and significance level is more than the acceptable level of 0.05 for two factors. It is inferred that the opinion of the respondents is not varied on the factors namely Satisfactory Issue and Motivating factors to avail Housing Loan from HDFC, when they classified based on their type of family.
Association between purpose of loan and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between purpose of loan and opinion about various factors of housing loan’. To test this hypothesis, ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on the purpose of availing housing loan from HDFC bank in the study area.
Association between source of knowledge about housing loan and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between source of knowledge about housing loan and opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. It is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on the source of knowledge about housing loan of HDFC bank.
Association between number of occupation of the respondents and their opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between number of occupations of the respondents and their opinion about various factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various factors of housing loan is varied when the respondents are classified based on the number of occupations they involved.
Analysis of socio economic factors of the respondents and their opinion about service quality of HDFC bank regarding housing loan
Hypothesis
‘There is no significant association between the area of the respondents and opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for four factors except for the factor formalities for sanctioning loan. Hence the null hypothesis is rejected for the first four factors and accepted for the last factor. Hence It is found that the HDFC bank treats both rural and urban customers equally in formalities for sanctioning housing loan in the study area.
Association between Type of house and opinion about various service quality factors of Housing loan
Hypothesis
‘There is no significant association between the type of house of the respondents and opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for four factors except for the factor approachability (p=0.306). Hence the null hypothesis is rejected for the four factors and accepted for the factor namely approachability. Hence it is inferred that the HDFC bank treats the customers equally for providing housing loan services without discriminating them based on the type of house they owned.
Association between Type of Family and opinion about various service quality factors of Housing loan
Hypothesis
‘There is no significant association between type of family of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample’t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all service quality factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents is not varied on the service quality factors of Housing Loan when they classified based on their type of family in the study area.
Association between Gender and opinion about various factors of Housing loan
Hypothesis
‘There is no significant association between the gender of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and it is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their gender in the study area.
Association between Nature of customer and their opinion about service quality factors of Housing loan
Hypothesis
‘There is no significant association between the nature of customer and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and it is found that there is a significant association between the nature of customer and their opinion about service quality factors of customer service and approachability factors. It is found that the HDFC bank offers equal customer service and easy approachability for their customers regarding housing loan.
Association between Marital status and opinion about service quality factors of Housing loan
Hypothesis
‘There is no significant association between marital status of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis independent sample ‘t’ test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all service quality factors of housing loan. Hence the null hypothesis is rejected and it is concluded that there is a significant association between the marital status of the customers and their opinion about service quality factors of housing loan. It is inferred that the opinion of the respondents is varied on all service quality factors when they classified based on their marital status.
Association between Age and opinion about various service quality factors of Housing loan
Hypothesis
‘There is no significant association between the age of customers and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their age.
Association between Occupation of the respondents and their opinion about various service quality factors of Housing loan
Hypothesis
‘There is no significant association between occupation of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all service quality factors. Hence the null hypothesis is rejected and it is inferred that opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their occupation.
Association between Annual Income and opinion about service quality factors of Housing loan
Hypothesis
‘There is no significant association between annual income of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their annual income.
Association between Educational Qualification and opinion about service quality factors of Housing loan
Hypothesis
‘There is no significant association between educational qualification of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their educational qualification.
Association between purpose of loan and opinion about service quality factors of Housing loan
Hypothesis
‘There is no significant association between purpose of loan and opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on the purpose of availing housing loan from HDFC bank in the study area.
Association between source of knowledge about housing loan and opinion about service quality factors of Housing loan
Hypothesis
‘There is no significant association between source of knowledge about housing loan and opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on the source of knowledge about housing loan of HDFC bank.
Association between number of occupation of the respondents and their opinion about service quality factors of Housing loan
Hypothesis
‘There is no significant association between number of occupations of the respondents and their opinion about various service quality factors of housing loan’. To test this hypothesis ANOVA test is applied and it is found that the significance value is less than the acceptable level of 0.05 for all factors. Hence the null hypothesis is rejected and it is inferred that the opinion of the respondents regarding the various service quality factors of housing loan is varied when the respondents are classified based on their number of occupations.
Association between area of the respondents and purpose of availing housing loan
Hypothesis
‘There is no significant association between the area of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and concluded that there is a significant association between the area of the respondents and purpose of availing housing loan.
Association between area of the respondents and source of knowledge about housing loan
Hypothesis
‘There is no significant association between the area of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between the area of the respondents and source of knowledge about the housing loan.
Association between Type of house and Purpose of availing housing loan
Hypothesis
‘There is no significant association between Type of house and Purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between Type of house and Purpose of availing housing loan.
Association between Annual Income of the respondents and their satisfaction level towards housing loan
Hypothesis
There is no significant association between annual income of the respondents and the overall satisfaction. To test this hypothesis chi-square test is applied and it is found that p value is less than the acceptance level of 0.05 the null hypothesis is rejected. So, there is a significant association between annual income of the respondents and their overall satisfaction towards housing loan.
Association between annual income of the respondents and their satisfactory factors towards housing loan
Hypothesis
There is no significant association between annual income of the respondents and satisfactory factors in respect of the housing loan. To test this hypothesis Chi-square test has been applied and it is concluded that there is no significant association between annual income of the respondents and satisfactory issues in respect of the housing loan.
Association between annual income of the respondents and their dissatisfactory factors towards housing loan
Null Hypothesis
There is no significant association between annual income of the respondents and dissatisfactory factors in respect of housing loan. To test this hypothesis Chi-square test has been applied and it is concluded that there is no significant association between annual income of the respondents and dissatisfactory issues in respect of the housing loan.
Association between age and difficulties faced by the respondents for availing housing loan
Hypothesis
‘There is no significant association between age of the respondents and difficulties faced while availing housing loan’. To test this hypothesis ‘t’ test is applied and it is found that p < the 0.05, the null hypothesis is rejected, so there is a significant association between the age group of the respondents and difficulties factors of tedious formalities, arrangement of security and documentation. But there is no significant association (as the p> 0.05) between age group of the respondents and difficulties factors of frequent visit to the bank and follow up of loan application.
Association between type of house of the respondents and source of knowledge about housing loan
Hypothesis
‘There is no significant association between the type of house of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between type of house of the respondents and source of knowledge about housing loan.
Association between type of family and purpose of availing housing loan
Hypothesis
‘There is no significant association between type of family of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between type of family of the respondents and purpose of availing housing loan.
Association between type of family and source of knowledge about housing loan
Hypothesis
‘There is no significant association between type of family of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between type of family of the respondents and source of knowledge about housing loan.
Association between gender and purpose of availing housing loan
Hypothesis
‘There is no significant association between gender of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between gender of the respondents and purpose of availing housing loan.
Association between gender and source of knowledge about housing loan
Hypothesis
‘There is no significant association between gender of the respondents and source of knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between gender of the respondents and knowledge about housing loan.
Association between type of customer and purpose of availing housing loan
Hypothesis
‘There is no significant association between type of customer and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between gender of the respondents and knowledge about housing loan.
Association between type of customer and knowledge about housing loan
Hypothesis
‘There is no significant association between type of customer and knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between type of customer and knowledge about housing loan.
Association between age and purpose of availing housing loan
Hypothesis
‘There is no significant association between age of customers and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between age of customers and purpose of availing housing loan.
Association between age and knowledge about housing loan
Hypothesis
‘There is no significant association between age of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between age of customers and knowledge about housing loan.
Association between marital status of the respondents and purpose of availing housing loan
Hypothesis
‘There is no significant association between marital status of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between marital status of the respondents and purpose of availing housing loan.
Association between marital status and knowledge about housing loan
Hypothesis
‘There is no significant association between marital status of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between marital status of customers and knowledge about housing loan.
Association between occupation and purpose of availing housing loan
Hypothesis
‘There is no significant association between occupation of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between occupation of the respondents and purpose of availing housing loans.
Association between occupation and knowledge about housing loan
Hypothesis
‘There is no significant association between occupation of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between occupation of customers and knowledge about housing loan.
Association between annual income and purpose of availing housing loan
Hypothesis
‘There is no significant association between annual income of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between annual income of the respondents and purpose of availing housing loan.
Association between annual income and knowledge about housing loan
Hypothesis
‘There is no significant association between annual income of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between annual income of customers and knowledge about housing loan.
Association between educational qualification and purpose of availing housing loan
Hypothesis
‘There is no significant association between educational qualification of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between educational qualification of the respondents and purpose of availing housing loan.
Association between educational qualification and knowledge about housing loan
Hypothesis
‘There is no significant association between educational qualification of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between educational qualification of customers and knowledge about housing loan.
Association between number of occupations and purpose of availing housing loan
Hypothesis
‘There is no significant association between number of occupations of the respondents and purpose of availing housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between number of occupations of the respondents and purpose of availing housing loan.
Association between number of occupations and knowledge about housing loan
Hypothesis
‘There is no significant association between number of occupations of customers and knowledge about housing loan’. To test this hypothesis chi-square test is applied and it is concluded that there is a significant association between number of occupations of customers and knowledge about housing loan.
Correlation between satisfactory level and various service quality factors
To know the correlation between satisfactory level of the respondents and various service quality factors of housing loan Karl Pearson’s co-efficient of correlation test is used and it is found that there is a high positive correlation is between satisfactory issue and formalities for sanctioning housing loan (r=0.932), followed by satisfactory issue and customer service (r=0.911), satisfactory issue and speed process of application (r=0.910), satisfactory issue and information sharing (r=0.905), satisfactory issue and easy approachability (r=0.893).
Correlation between difficulties in availing housing loan and various service quality factors
It is found that there is a perfect correlation between difficulties in availing housing loan and opinion about various service quality factors i.e., (p=0.00). Further it is found that there is a high positive correlation is between difficulties in availing housing loan and formalities for sanctioning housing loan (r=0.896), followed by difficulties in availing housing loan and speed process of application (r=0.891), difficulties in availing housing loan and information sharing (r=0.860), difficulties in availing housing loan and customer service (r=0.857), difficulties in availing housing loan and easy approachability (r=0.825).
SUGGESTIONS
The following are the suggestions offered by the researcher based on the above findings.
It is suggested that the HDFC bank should provide equal level of loan services to their customers without discriminating them based on the residing area, gender, type of family, experience with the banks, type of house owned, age, occupation, annual income, educational qualification, purpose of availing loan, sources of getting knowledge about the housing loan, marital status.
Further it is suggested that the loan services should be given to the respondents based on the six factors namely sources of getting knowledge about housing loan, educational qualification, number of occupation, occupation, type of house of the respondents and their age.
It is suggested that the HDFC bank should advertise their loan products with same information in all medium. Further it is suggested that the equal level of loan services should be offered without considering the number of occupations and nature of occupations of the respondents in the study area.
It is suggested that HDFC bank should decrease the formalities for availing housing loan than the existing level to increase the satisfaction level of the customers and decrease the difficulties in availing housing loan.
Conclusion
Different factors are motivating the housing loan borrowers of the HDFC Bank, but easy repayment conditions play a major role amongst these factors. While analyzing the overall satisfaction of the borrowers towards housing loan with respect to their annual income, it has been understood that, there is significant association between annual income of the respondents and the overall satisfaction. It reflects that, the annual income makes impact on the overall satisfaction. As far as the satisfactory and dissatisfactory issues of housing loan borrowers are concerned, there is a significant association among satisfactory issues, dissatisfactory issues with annual income of the respondents. The borrowers suffer from five types of difficulty factors while availing housing loans from HDFC Bank. Further it has been understood that, there is a significant association between first three factors (tedious formalities, arrangement of security and documentation) and age groups and at the same time, there is no association between the remaining two factors (frequent visit to the bank and follow up) and age groups. About the service quality of the HDFC bank, it is understood from the analysis that, there is significant association between gender of the borrowers and their perception on service quality.
From the study it is understood that borrowers of housing loan prefer HDFC for the reason of location followed by technology and types of loan. Further the customers are facing some problems in availing housing loan with HDFC in the study area. Hence the HDFC bank should take necessary steps to overcome the problems after referring the suggestions offered by the researcher to increase their housing loan business in the study area.
Scope for further Research
The researcher has identified the following areas for further research related with the present research work.
1. ‘A comparative study on the customers’ satisfaction towards availing housing loans with HDFC bank and other banks’ may be studied.
2. ‘A Study on recovery management strategies of HDFC bank towards housing loans’ may be studied.
3. ‘A comparative study on recovery management strategies of HDFC bank with other banks related to housing loans’ may be studied.
4. ‘A Study on housing loans portability strategies of HDFC bank’ may also be studied.
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REPORT
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APPENDIX
A STUDY ON HOUSING FINANCE IN SALEM DISTRICT WITH SPECIAL REFERENCE TO HDFC BANK’
Interview schedule
1. Name :
2. Address :
3. Gender :
a )Male b)Female ( )
4. Age :
a)Below 30 years b) 31 ‘ 50 years
c) Above 50 years ( )
5. Educational qualification
a) Upto Higher Secondary b) Graduate
c) Profession ( )
6. Area of the respondents :
a) Rural b) Urban ( )
7. Own House or not :
a) Yes b)No ( )
8. Type of family :
a) Nuclear family b) Joint family ( )
9. Marital status :
a) Married b) Unmarried ( )
b)
10. Nature of customer :
a) Existing customer b)New Customer ( )
11. Occupation :
a) Government employee b) Profession
b) Private employee d) Retired
e) Business ( )
12. Annual income :
a) Less than Rs. 5 Lakh b) Rs. 5 Lakh ‘ Rs.7 Lakh
c) Above Rs. 7 Lakh ( )
13. Number of Occupation
a) Two b) Three
c) More than three ( )
14. Purpose of Housing loan
a) Construct a new house b) Purchase a new house
c) Purchase a old house ( )
15. How to come about housing loan
a) Yes b) No ( )
16. Knowledge about housing loan
a) Word of mouth b) Reputation of Bank
c) Advertisement through TV d) Expert advise
e) Advertisement through print media f) Friends
g) Relatives h) Market representatives ( )
17.
18. Satisfactory issue
a) Rate of interest ( )
b) Period of payment ( )
c) Terms and conditions ( )
d) Easy documentation ( )
e) Amount granted ( )
f) Support of the bank staff ( )
g) Speedy processing ( )
19. Dissatisfactory issue
a) Lack of transparency ( )
b) Hidden charges ( )
c) No proper communication from the bank ( )
d) Strict procedure collection of EMI ( )
e) Penalty on late payment of the EMI ( )
f) Poor coordination of the bank staff ( )
20. Motivating factors to avail housing loan from HDFC?
a) Cordial approach of the bank ( )
b) Personal influence ( )
c) Easy accessibility of the bank ( )
d) Alternative advertisement of the bank ( )
e) Tax benefit ( )
f) Easy repayment conditions ( )
g) Best choice than other sources ( )
h) Period offered for payment of loan ( )
i) Loan schemes ( )
j) Income level of the respondents
21. Difficulties in availing housing loan
a) Tedious formalities ( )
b) Arrangement of security ( )
c) Documentation ( )
d) Frequency visit to bank ( )
e) Follow up of the loan application ( )
22. Overall satisfaction of the borrowers
a) Highly satisfied ( )
b) Satisfied ( )
c) Neutral ( )
d) Dissatisfied ( )
e) Highly dissatisfied ( )
23. Overall opinion about problem obtaining housing loan from HDFC
a) Very High ( )
b) High ( )
c) Medium ( )
d) Low ( )
e) Very Low ( )
24. Opinion about availing housing loan
Variables Poor Medium Good Very Good
Customer service
Easy approach
Information sharing
Formalities
Speed process of application