Professional Documents
Culture Documents
MBA Training Report
MBA Training Report
Submitted by MANPREET KAUR MBA 3rd semester ROLL NO. 1174126 In partial fulfillment for the award of the degree OF MASTERS OF BUSINESS ADMINISTRATION SCHOOL OF MANAGEMENT STUDIES, BHADDAL
CERTIFICATE
DECLARATION
I hereby declare that project report entitled A COMPARATIVE STUDY OF HOME LOANS PROVIDED BY COOPERATIVE BANK, PUNJAB NATIONAL BANK AND STATE BANK OF INDIA submitted in the partial fulfillment of the requirement for the degree of master of business administration (MBA) to school of management studies, bhaddal affiliated to Punjab technical university, Jalandhar is my original work and has not been submitted for the award of any other degree, diploma or fellowship.
SUBMITTED TO
ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them. I am highly indebted to my project guide lecturer of school of management studies for her guidance as well as for providing necessary information regarding the project & also for her support in completing the project. I wish to express my sincere gratitude to Mr. Avatar Singh branch manager of co operative bank Morinda and other employees of the branch for providing me an opportunity to do my project work on A COMPARATIVE STUDY OF HOME LOANS PROVIDED BY COOPERATIVE BANK, PUNJAB NATIONAL BANK AND STATE BANK OF INDIA .I would like to express my gratitude towards my parents & member of my family for their kind co-operation and encouragement which help me in completion of this project.
PREFACE
This project report pertains to the making of summer training project of MBA curriculum. The purpose of this project is to make the students gain thorough knowledge of the topics given to them. I learned a lot about the topic after putting in much hard work in collecting the information regarding the topic allotted, which will be of a great use in future. It cannot be said with certainty that full justification has been done to the topic in the few pages presented here, but I have tried my best to cover as much as possible about HOME LOANS in this report.
TABLE OF CONTENTS
S.NO TOPIC PAGE NO.
Certificate
Declaration
Acknowledgement
Preface
8-48
49-50
51-52
53-64
65-67
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BIBLIOGRAPHY
68-69
CATEGORIES
There are two main categories of the co-operative banks.
a) Short term lending oriented co-operative Banks -within this category there are three sub categories of banks via state co-operative banks, District co-operative banks and Primary Agricultural co-operative societies. b) Long term lending oriented co-operative Banks -within the second category there are land development banks at three levels state level, district level and village level. The co-operative banking structure in India is divided into following main 5 categories Primary Urban Co-op Banks Primary Agricultural Credit Societies District Central Co-op Banks State Co-operative Banks Land Development Banks
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FINANCE FUNCTION
1. Cooperative banks in India finance rural areas under: Farming Cattle Milk Personal finance
2. Cooperative banks in India finance urban areas under: Self-employment Industries Small scale units Home finance Consumer finance Personal finance
of providing cheap credit to farmers. They interact directly with the borrowers by providing them loans and collecting the repayment of loan already given. They are the basic units having links the ultimate borrowers and the hire financing institutions.
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Table no.1
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1. THE ROPAR CENTRAL CO-OPERATIVE BANK a) Name: "The CENTRAL Cooperative Bank (ROPAR) b) Establishment: 1927 c) Approved by: RBI (Reserve Bank of India) d) Address of Head Office: Railon Road, Near D.A.V School ROPAR (Phone no. 01881-220412)
e) E-mail: [email protected]
2. TRAINING BRANCH a) Name: "The Cooperative Morinda" b) Establishment: 1957 c) Registered no.: RPCD.CHD.No./1625 d) Address: Near Bus Stand, Garden Colony, MORINDA (Ph no. - 0160-2630054)
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Saving Bank A/c Saving Bank - No frill A/c Term Deposit A/c Recurring Deposit A/c Current A/c Locker A/c
15
Schemes S.No
Period from
Period up to
4%
4%
15 days
45 days
5%
5.50%
91 Days
179 Days
7.00%
7.50%
46 Days
90 Days
5.75%
6.25%
180
<1 year
8.00%
8.50%
1 year
< 2 year
9.25%
9.75%
2 years
<3 years
9.00%
9.50%
16
above
8.50%
9.00%
10
4.00%
4.00%
11
Current A/c
0%
0%
12
Locker A/c
17
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Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all gathering funds little by little to afford ones dream. Home is one of the things that everyone one wants to own. Home is a shelter to person where he rests and feels comfortable. Many banks provide home loans whether commercial banks or financial institutions to the people who want to have a home. Many banks are providing home loans at cheapest rate to attract consumers towards them. The more customer friendly attitude of these banks, currently offer to consumers cheapest loan over homes.
OVERVIEW
Your Home is a place where you relax after coming back from your days tiring work, it is that place where you can give time to your family & spend beautiful moments with them. To acquire a home which can be christened your Own House is a life-time decision & has to be taken with a lot of planning & requires huge finances. Your Dream Home is not very far away with a Home Loans which will fulfill your Dream into a reality. We are working constantly to get you the best Loans Deal & have brought a small guide which would answer some important questions related to Home Loans & help you decide your loans deal.
DEFINITION
Home Loan is a Secured Loan offered against the security of a house/property which is funded by the banks loan, the property could be a personal property or a commercial one. The Housing Loan is a loan taken by a borrower from the 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 is failed to pay back the loan, the banker can retrieve the lent money by selling the property.
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ELIGIBILITY CRITERIA
However, if one is a resident or non-resident individual who is planning to buy a house in India, one can apply for a home loan. If a person has decided to buy a property in the near future, he/she can apply for a loan before even selecting the property. Once the maximum amount to put into the property has been decided, the Housing Finance Institutions or Banks will let the customer know that how much he/she is eligible for and this helps to plan out the budget.
Brother-Sister-No clubbing-is possible. Sister-Sister- No clubbing is possible. Parent-Minor- Child- No clubbing is possible in this case also.
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HFIs that go in for a registered mortgage pass these charges on to the customer. These are rather heavy in certain states depending on the laws laid down by the state where one buys a property. 7. Personal Guarantee from Charges Since the personal guarantee provided by the customer need to be stamped, these charges are also recovered from the customer. They are charged to him by HFIs who demand for Guarantees. 8. Cheque Bounce Charges In case the cheques through which one makes a payment to HFls get dishonored, some minimum charges are levied by the HFI. The same are recovered from the customer. 9. Delayed payment charges HFls/Bs charge delayed payment charges from the customer if he/she delays the payment of installments beyond the due date. 10. Additional charges These are levied as a percentage on the delayed payment charges by most HFls. They are levied if one fails to pay the dues within the stipulated time after a delay has taken place. 11. Incidental charge This is payable in case the HFI/B sends a representative from their organization to collect their outstanding dues. It is normally charged at a flat rate per visit. These charges are levied by most HFls/Bs. 12. Prepayment Charges. This is a penalty charged by HFls/Bs from when one makes either a part prepayment or a full repayment of the loan. This charge is levied only on lump sum payments and not on the EMls that one pays. This charge is levied on the amount prepaid by one and not on the entire outstanding principal. These charges are gradually being discount.
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CREDIT DOCUMENTATION
Given below is the exhaustive list of credit documents- that need to be submitted for a general home loan product. The documents vary from one HFI/B to another based on one's employer, qualifications experience etc. The general requirements are as follows: 1. Income Documents For salaried slips for the last three months-appointments letter-salary certificateretainer ship agreement, if appointed as a consultant-Form 16 issued by the employer in customer's name income document for self employee - last three years profit and loss account statement duly attested by Chartered Accountants. Last three years Balance Sheets duly attested by Chartered Accountant, last three years Income Tax Returns with computation chart duly filed and certified by the Income Tax authorities. 2. Proof of employment - Identify card issued by the employer- Visiting card. 3. Employer's details (In case of private limited companies) Profile of employer on employers letterhead (to be signed by a senior person in the organization) comprising Name of promoter/directors Background of promoters/directors Nature of business activity of your employer Number of employees List of branches/factories List of suppliers List of clients/customers Turnover of employer Annual reports of the employer for the last two to three years. 4. Proof of age (Anyone of the following) - Passport- Voter's ID card-PAN cardRation card-Employer's identity card-School leaving certificate-Birth certificate. 5. Proof of residence (Anyone of the following) - Ration card-Passport- PAN cardRent agreement, if the customer is staying currently on rent- Bank Pass bookAllotment letter from the company if he/she is residing in company quarters.
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6. Proof of name change (If applicable) - A copy of the official gazette -A copy of a newspaper advertisement publicizing the name change-Marriage certificates.
LEGAL DOCUMENTATION
Legal Documentation the typical legal documents that need to be submitted to the HFC arc discussed here. Given below is a list of legal property documents that need to be submitted to the HFC for mortgage of the property. The name and the list of documents vary from state to state and also depend on the type of property being financed. A broad outline of the documents required is given below. 1. Acceptance copy of the offer letter issued by the HFC/B. 2. Title documents of the property that include -sale agreement duly registered-Own contribution receipts - Allotment letter-Registration receipt-Land documents indicating ownership, if applicable- Possession letter-Lease agreement, if applicable (Property bought from a development authority) - Mortgage deed if the HFC opts for a registered mortgage. 3. No Objection Certificate from the developer, society or development authority as applicable. 4. Personal Guarantees, if applicable. 5. In case of alternator additional security, documents for the same depending upon the security details. 6. Post dated cheques for the EMls. The above documents are only indicative in nature and do not cover the entire list. It may, also be noted that in a resale case, the previous chain of agreement also need to be taken.
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FEATURES
Home Loans are the best option you can go for to finance a new home. The Co-operative bank offers you the most convenient and practical home loan plans to suit your needs. With so many attractive features in every type of home loan it offers, creating the home you always wanted is no longer a distant dream. Attractive loan interest rates Home loan amount suited to your needs Simplified documentation Doorstep delivery of home loan papers Sanction approval without having selected property. Free personal accident insurance (terms & condition) Insurance options for your home loan at attractive premium They provide two types of home loan schemes. Urban Housing Loan Scheme Rural housing Loan Scheme The loan under such scheme shall be implemented through the branches of the Punjab State Cooperative Bank / Central Cooperative banks concerned and shall be limited to urban and/ rural areas falling in the area of operation of the lending bank.
AREA OF OPERATION
Loan shall be advanced to individual and member of Group housing Cooperative Societies in the area of operation banks in state of Punjab.
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ELIGIBLE BORROWERS
Individuals Members of cooperative housing societies
PURPOSE OF LOAN
Loan shall be advanced under the scheme for purchase of built up house, construction of a new house or repair/renovation/addition/alteration of existing house.
LOAN ELIGILBILTY
Loan eligibility shall be calculated on the basis of repayment capacity of the borrower. The repaying capacity shall be determined on the basis of land holding and other known sources of income and commitments/ subsistence towards his family. A reasonable installment to income ratio i.e. normally up to 35% of the gross income can also be considered for loan eligibility.
PERIOD OF LOAN
The maximum period of loan shall be 15 years and loan shall be repayable in equated monthly /half yearly installments. The first installment shall become due after expiry of 9 months from the date of drawl of first installment in case of construction and where as in the case of purchase of built up house it shall start after expiry of 3months from purchase.
SECURITY
Security for the loan is a first mortgage of the property to be financed normally by way of deposit of original title deeds.
DISBURSAL OF LOAN
In case of urban housing loan scheme The loan shall be disbursed after the property is technically appraised, all legal documentation completed and borrower having invested own contribution in full.
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In case of purchase of plot +construction, the disbursement shall be in 3 installment as follows : 1. For purchase of plot - 50% 2. Up to roof level 25% 3. After roof level -25% Loan will be disbursed at one go for purchase of a built up house. However for construction on pre-owned plot, the disbursement shall be in two installments 1st installment for after plinth level - 50% 2nd installment for construction of the building after roof level - 50% In case of rural housing loan scheme 1. 1st installment at the time of starting constructing after plinth level 50% 2. 2nd installment after completion of roof level - 50% 3. 2nd installment shall be disbursed after ensuring proper utilization of previous installment.
INSURANCE
Comprehensive insurance in the joint names of the borrower and the bank shall be made the property mortgaged against fire, riots earthquake lighting floods etc. in case of default bank will be at liberty to get policy renewed by debit to house loan account of the borrower.
CUSTOMER PRIVILEGES
If you are an existing Home Loan customer, you can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loans and Loan against securities) at lower interest rates.
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Cooperative Education Loan Scheme children of poor farmers, Dalits, BC, etc.
Education Loan
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S.No
Schemes
Period from
Period up to
Rate of interest(Public)
14%
14%
14%
14%
11.50%
13%
13%
10%
10%
32
13%
13%
11%
11%
11.50%
11.50%
10
10%
10%
11
10.50%
10.50%
12
10%
10%
13
Cooperative Education Loan Scheme children of poor farmers, Dalits, BC, etc.
7.25%
7.25%
33
14
14%
14%
15
10.5%
10.50%
16
14%
14%
17
..
18
PACS to members
19
20
9%
9%
21
12%
12%
34
22
12%
12%
35
TENURE
For loans repayable in/up to
Up to 5 years floating
8.50
10.00
fixed
9.50
10.00
10.50
12.50
fixed
12.50
13.00
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ELIGIBILTY
Any individual having regular source of income with age 18 to 65 year is eligible to apply for a home loan. Income of spouse or children can also be added.
CHARGES
Loan processing charges - For loan amount up to 3 crore is 0.50% of the loan amount max. Of Rs 20000 + taxes & for loan above 3 crore 0.90% of the loan amount + taxes Documentation charges - Rs 1350/- + taxes Prepayment charges - Nil when loan is repaid by the borrower on his own from his own funds, or when the borrower shifts to some other bank after increase in interest rate within 30 days.2% in case of when the loan is repaid by some other financial institution or banks.
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INTEREST RATE
Lending rate structure is that interest rate for home loan can be fixed or floating. Floating rate varies with BPLR & Base Rate. Currently the base rate is 10% and BPLR is 13.50% with effect from 05.05.2011 Currently loan is available as per floating rate Table no.4
Loan Amount
Up to 5 yrs
Up to 30 lakh
10.5
10.75
10.75
11
11
11.25
11.5
11.5
11.75
11.75
11.5
11.75
11.75
12
12
DOCUMENTATIONS
1. Salaried Individual Application form with recent photograph Salary slip of last 3 months Latest Form 16 Bank statement for last 6 months Processing fee check Proof of identity (any one): Passport Driving license/photo credit card/Employee license/Voter's ID/PAN card
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Proof of Residence (any one): Driving license/Any utility bill/Govt. or authority bill Proof of age (any one) : Passport/Voter's ID/PAN card/' Birth certificate/life insurance policy or premium receipt Signature verification proof Repayment track record of existing loans/Loan closure letter.
2. Self-Employed Application form with recent photograph Bank statement for last 6 months Processing fee check Proof of age (any one) : Passport/Voter's ID/PAN card/'Birth certificate/life insurance policy or premium receipt Proof of identity (any one): Passport Driving license/photo credit card/Employee license/Voter's ID/PAN card Proof of Residence (any one): Driving license/Any utility bill/Govt. or authority bill P&L and balance Sheet for last 2 years certified/audited by CA Qualification proof of the highest professional degree Proof of existence Income Tax return/Computation of total income/Auditor's Report Balance sheet/Profit and loss account for last 2 years certified by CA Repayment track record of existing loans/Loan closure letter Proof of office address Board Resolution in case of company
EXTENT OF LOAN
1. Individual For construction/ purchase of house/ flat - 75% of the cost of construction of house or purchase of house/ flat. For carrying out repairs/ renovation/ additions/ alterations - 75% of the estimated cost subject to maximum of Rs. 20lacs. Loan up to Rs.20 Lakh for purchase of Land/Plot. Loan is available maximum up to Rs.2 Lakh for furnishing.
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2. Security Mortgage of property for which finance is being given. In case of purchase of house/ flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/ society, borrower and the Bank. In case of purchase of house/ flat on first power of attorney, additional security equal to 125% of the loan amount by way of mortgage of some other property or pledge of bank's FDR/ LIC policy/ Govt. Securities, NSCs, KVPs, IVPs, / PSU Bonds etc. has to be provided. Fixed Rate of Option is subject to Reset Clause of Five Years. Extra rate of interest of 0.50% on Card Rates to be charged in respect of persons already having one or more houses and availing housing loan for subsequent house(s). Option for Fixed or Floating Rate of Interest exercised by the borrower will not be allowed to be changed for a minimum period of 3 years, where after any change would be at the discretion of the Sanctioning Authority.
UPFRONT FEE
0.90% of the loan amount + Service Tax & Education Cost
REPAYMENT
Loan is to be repaid in equated monthly installments within a period of 25 years or before the borrower attains the age of 65 years.
DISBURSEMENT
For outright purchase of house/ flat, the loan amount will be paid in lump sum to the vendor. For house/ flat under construction, the loan amount will be disbursed in stages as per progress of construction/ demand by selling agency.
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Up to 5 years - floating
9.00
10.00
fixed
9.25
10.25
9.50
10.00
fixed
10.25
10.50
9.75
10.25
fixed
10.75
11.00
10.00
10.50
fixed
11.25
11.50
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Interest Rate
2%
2%
Part-payment Charges
Nil
Switching Charges Nil (Fixed to Floating or vice-aversa) Loan to Value ratio 75%
Speed of Sanction
7 working days
Ease of documentation
Customer Service
Franking Charges
0.2%
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most preferred home loan provider" voted in AWAAZ Consumer Awards along with the
most preferred bank award in a survey conducted by TV 18 in association with AC Nielsen-ORG marg in 21 cities across India. SBI Home Loans now offers Interest Rates concessions on green homes in accordance with SBI's commitment to Environment protections Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. Best Practices followed in SBI mentioned below will tell you why it makes sense to do business with State Bank of India. Table no.6 Best practices followed in SBI
People dealing with End to End service by Permanent employees of SBI who are you accountable to you.
Place
SBI branch of your choice will service your loan account. You can always meet our employees face to face.
Price
Prepayment charges
No penalty for prepayments made, out of bonafide savings or windfall gains for which evidence is produced.
No hidden costs
Transparency
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PACKAGE OF EXCLUSIVE BENEFITS Complimentary international ATM-Debit card Complimentary SBI Classic/ International Credit Card. Option for internet-banking Concessional package under Credit Khazana for prospective Auto Loan, Student Loan, Personal Loan borrowers whose accounts are conducted satisfactorily. 50% concession in charges in respect of all personal remittances/ collection of outstation cheques. Personal loan at attractive rates under SBI Home Plus scheme tailored exclusively for SBI Home Loan customers.
PURPOSE
Purchase/ construction of house/flat Purchase of a plot Of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies
FEATURES
Interest charged on the daily reducing balance No penalty for prepayments made No hidden costs All the features of our product, including interest rates, are in the public domain. Loan sanctioned within 6 days of submission of required documents. Option to club income of your spouse and children to compute eligible loan amount Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount
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Provision to finance cost of furnishing and consumer durables as part of project cost Repayment permitted up to 70 years of age. Free personal accident insurance cover up to Rs.40 Lac. Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost) Plus schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies. Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat.
ELIGIBILTY
Minimum age 18 years as on the date of sanction Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment.
Bank name
Up to 30 lakh
From 30 to 75 lakh
Above 75 lakh
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LOAN AMOUNT
40 to 60 times of NMI, depending on repayment capacity as % of NMI as under Net Annual Income EMI/NMI Ratio
Up to Rs.2 lakh
40%
50%
55%
DOCUMENTS
Completed application form Passport size photograph Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID
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Proof of business address in respect of businessmen/ industrialists Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer) Copy of approved plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months
Table no.7
Topic
Salaried
Self employed
Age
21years to 60years
21years to 70years
Tenure
5years-20years
5years-20years
Experience required
2years
3years
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TENURE
Up to 5 years floating
10.50
11.00
fixed
12.75
13.25
10.75;
11.25
fixed
12.75
13.25
10.75 - 11.00
11.25 - 11.50
fixed
12.75
13.25
11.00
11.50
fixed
12.75
13.25
48
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NEED OF STUDY
The Indian housing finance industry has grown by leaps and bound in few years. A total home loans disbursement by banks has raised which witnesss phenomenal growth from last 5 years. There are greater numbers of borrowers of home loans. So by this study I can find out satisfaction level of customers and problems faced by them in obtaining home loans.
SCOPE OF STUDY
Based on the findings and recommendations of the study the present study will be confined to three commercial Banks in Morinda city namely PNB, State Bank of India, the Co-operative Bank. It includes public sector banks.
50
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RESEARCH DESIGN
This project is based on exploratory study as well descriptive study. It was an exploratory study when the customer satisfaction level was studied to suggest new methods to improve the services of banks in providing home loans and it was descriptive study when detailed study was made for comparison of home loans of different commercial banks.
52
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1. From which of the following institution you have taken the loan?
Bank
No. of Respondents
%age of Respondents
9 11 20 10 50
9%
10%
Interpretation
This pie chart shows that 18% of respondents have taken loan from SBI, 22% from PNB, 40% from The Cooperative, 20% from others.
54
2. Which bank is more secure according to you? Bank PNB SBI Cooperative Others Total No. of respondents 11 13 18 8 50 %age of respondents 22% 26% 36% 16% 100%
11%
13% 50%
18%
8%
Interpretation
The pie chart shows that 36% of the respondents in matter of security of bank are in favors of Cooperative bank, 26% of them in favors of SBI, 22% respondents are in favor of PNB, only 16% respondents are favoring others.
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3. What is the amount of loan availed by the customers? Amount (RS) Below 2 Lac 2 10 Lac 10-15 Lac Above 15 Lac TOTAL No. of respondents 18 25 5 2 50 %age of Respondents 36% 50% 10% 4% 100%
4% 10%
50%
Interpretation The above pie-chart shows that 50% of customers have taken loan between Rs. 2-10 lakh, 36% below Rs. 2 lakh, 10% between Rs. 10-15 Lac and 4% customers above Rs. 15 lakh.
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4. What is the purpose of the loan? Purpose Construction Improvement Purchase Extension Equity Total Respondents 26 6 12 5 1 50 Percentage 52% 12% 24% 10% 2% 100%
Interpretation This pie- chart shows that 52% of respondents have taken loan for construction purpose, 24% have taken loan for purchase purpose 12% have taken loan for improvement purpose, 10% have taken loan for extension purpose and rest 2% comes under equity purpose.
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5. What is loan repayment period? Duration Up to 5 years Up to 10 years Up to 15 years Up to 20 years TOTAL No. of Respondents 18 16 15 9 50 %age of Respondents 36% 32% 30% 18% 100%
28%
Interpretation This pie-chart shows that 18% of customers have opted for loan repayment period of 5 years, 30% of respondents have opted for loan repayment period of 10 years, 36% of respondents have opted for loan repayment period of 15 years and 16% have opted for loan repayment period of 20 years.
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6. Who among your family mainly decides to take a loan? Decider Self Parents Friends/ Relatives Others TOTAL No. of Respondents 32 10 4 4 50 %age of Respondents 64% 20% 8% 8% 100%
8% 8%
Interpretation This pie chart shows that 64% of respondents have their own decision to take home loan, 20% of respondents depend on their parents decisions and 8% by friends/ relatives and rest 8% by other sources.
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7. From where you come to know about a particular bank or Institution? Sources Newspapers/ Magazines Internet/T.V. Exhibitions Builders/ Developers TOTAL No. of Respondents 18 12 9 11 50 %age of Respondents 36% 24% 18% 22% 100%
24%
Interpretation This pie chart shows that newspaper/ magazines are main source of information for customers i.e. 36% whereas 24% of customer comes to know from internet/ radio/T.V., 22% from builders/ developers and rest 18% from exhibitions.
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8. How much are you satisfied from your service provider? Decider Very Satisfied Satisfied Indifferent Dissatisfied Very Dissatisfied TOTAL No. of Respondents 10 30 2 6 2 50 %age of Respondents 20% 60% 4% 12% 4% 100%
60%
Interpretation These pie-chart shows that 60% of respondents are satisfied from their service providers and 20% are very satisfied, 12% are dissatisfied and 4% are very dissatisfied and 4% of the respondents are indifferent towards it.
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9. Have you ever faced any problem from your Home Loan institution? Response Yes No No. of Respondents 18 32 %age of Respondents 36% 64%
TOTAL
50
100%
Interpretation This pie chart shows that 64% of respondents have faced no problem while 36% of respondents have faced problem of intimation, proper dealing, networking, interest rates etc.
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10. In future, if required, which of the following institution would you approach for taking a Home Loan? Name PNB SBI Cooperative Others TOTAL No. of Respondents 10 12 15 13 50 %age of Respondents 20% 24% 30% 26% 100%
30%
Interpretation This pie chart shows that in future, 30% of customers would take home loan from Cooperative Bank, 24% from SBI, 20% from PNB, 26% from other home loan institutions.
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Total
50
100%
30%
70%
Interpretation This pie-chart shows that majority of customers opted for Adjustable Rate Home Loan i.e. 70% and 30% have opted for Fixed Rate Home Loan.
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FINDINGS
1. Most of the customers are satisfied from the Cooperative bank services because of their attractive interest rate charged on loans 2. Majority of the customers feel secured while availing loans from Cooperative banks followed PNB or SBI. 3. The main purpose of taking home loans is Construction followed by repairs, purchase or improvement. 4. Maximum customers availed loans on adjustable rates for their own benefits. 5. The Customer availed loan amount of 2 lakh to 10 lakh.
LIMITATIONS
This study has been restricted to Morinda City only. The information provided by the respondents may be biased and incorrect. The sample may not represent the whole population. Paucity of time and resources could lead to the inability of conducting a large survey. Approaching customers who had taken loan from sample institutions were not easy. Most of the customers were busy and were not willing to answer.
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CONCLUSION
In this project report the summary of the whole project has been covered how the whole project was carried out and the analysis was made. This project is based on the Comparative study of home loans provided by different banks. This topic covers the objective of studying the customer satisfaction level and comparative study of disbursement of home loans. The Housing Loan is a loan taken by a borrower from the 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. There are some advantages and disadvantage of availing bank loans. In this project study, first of all objectives were received to carry out this project. To study the topic under research the secondary data was collected. Such banks are emerging at higher position due to that public sector banks on ground of professionally managed services, reliable & transparent system, easy query handling etc. The problem faced by customers while availing home loans also reviled by this project. 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. However, the study had some limitations also such as lack of time, lack of data, non-response, reluctant attitude and illiteracy of respondents, which posed problems in carrying out the research. But proper attention was made to carry out research in proper way which may beneficial for banks to enhance their customer base.
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BIBLIOGRAPHY
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INTERNET WEBSITES
www.google.co.in www.sbi.co.in www.deal4loans.com http://www.rupeetalk.com/home-loan/compare-and-apply-pnb-home-loan/ http://www.investmentbazar.com/eligibility-criteria/ http://www.pnbindia.in
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