A SUMMER TRAINING REPORT ONCUSTOMERS PERCEPTION TOWARDS HOME LOAN OF State Bank of Patiala LTD. Submitted to Punjab Technical University ( PTU ) In Partial Fulfillment of the Requirement for the Award of Degree of Masters of Business Administration ( MBA )Supervised by:- Submitted by:-Dr. .. xxxxxxxxxxx Roll no.- .. Global Institute of Management and Emerging Technologies Amritsar (Session 2013-2015)

CERTIFICATE

This is certify that the summer training report titled Customers Perception towards Home Loan Of SBP Ltd. being submitted by Divya Dewan to the faculty of management Global Institute of management, Amritsar for the award of degree of MBA is a bonafide piece of work carried out by her under my guidance. This summer training report has not been submitted in part or in full to any other university or institution for the award of a degree. This research report is fit to be considered for the award of MBA degree

Dr.Shelly (Assistant Professor) Global Institute of Management, Asr

Declaration

I hereby declares that the summer training report entitled Customers perception towards home loan submitted by me to Global Institute of management and emerging technologies, Amritsar is a bonafide work done by me and this has not been submitted in part or full to his or any other university / institution for the award of any degree. If anything found copied, I would be solely responsible for that.

( xxxxxxx ) Signature of the student

Acknowledgement The success and final outcome of this project required a lot of guidance and assistance from many people and I am extremely fortunate to have got this all along the completion of my project work. Whatever I have done is only due to such guidance and assistance and I would not forget to thank them.I respect and thank Mr. xxxxxxxxxx, for giving me an opportunity to do the project work in Consumer perception towards home loan and providing me all support and guidance which made me complete the project on time. I am extremely grateful to his for providing such a nice support and guidance though he had busy schedule.I would not forget to remember all faculty members for their unlisted encouragement and more over for their timely support and guidance till the completion of my project work.I heartily thank my college project guide, xxxxxx for her guidance and suggestions during this project work.I am extremely thankful to all those persons who have positively helped me and customers who respond my questionnaire, around whom the whole project cycle revolves.

(xxxxxxx) Signature of the student

Table of Contents Chapter No.ContentsPage No.

1.Introduction1-39

Industry profile1-7

Company profile8-14

About the company8-11

Profit/Loss account12

Balance Sheet13

Mission and Vision14

Introduction to Home Loan15-39

Home Loan15-16

Advantages of Home Loan17

Disadvantages of Home Loan18

Disbursement of Home Loan19-24

Types of Home Loan25-29

Stages of Home Loan30-32

SBP Home Loan Scheme32-39

2.Review of Literature40-43

3.Research Methodology44-49

Objectives of study44

Sampling Plan45

Sources of Data45-46

Presentation tools

46

Limitations of study48

4.Data Analysis and Interpretation50-63

5.Conclusion and Recommendation64-66

6.Bibliography67

7.Annexure69-73

INTRODUCTION

Industry profile

The housing sector plays an important role in the economic development of the country. Every rupee invested in housing adds 78 paise to the GDP. Over 269 industries are directly or indirectly dependent on the housing sector. There is an estimated shortage of 20 million housing units in the country with an estimated investment requirement of over Rs 1500 billion. In this context it is important to note that that the organized housing finance industry barely accounts for 30% of the home loans disbursed in the country. The last few years have seen the home loans market growing at a CAGR of over 30 percent. The growth has been mainly fuelled by certain fiscal, social and regulatory drivers: Changes in demographic profile including increase in the rate of household formation due to structural shift from joint family system to nuclear family Ever increasing middle class, migration of population and increasing urbanization resulting in acute shortage of housing units. Increase in disposable income levels due to decrease in marginal tax rates and increase in total income levels Tax benefits and other fiscal incentives announced in the Union Budgets Increasing affordability of housing property purchase due to declining interest rates and stable property prices Decline in the average house cost to annual income ratio to around 4-5 from 11-14 during the last decade resulting in an affordable EMI as a percentage of monthly income Aggressive lending by banks to the housing sector due to lower credit off take by the corporate sector, attractive spread and lower non-performing assets

The major players in Indian housing finance industry are the Housing Finance Companies (HFCs), Scheduled Commercial Banks, and Co-operative Banks. The total incremental disbursements of the HFCs and the Banks have increased from approx Rs 16,000 cr in 1998-99 to approx. Rs 39,000 cr in 2002-03 with direct incremental disbursements growing from approx Rs 10,500 cr to Rs 34,000 cr during the same period. The year 2002-03 has witnessed a growth of 29 percent in total incremental disbursements and 33 percent in direct incremental disbursements over that of last year. Total incremental disbursement less Bank loans to HFCs, Bank investments in NHB/HUDCO Bonds and Bank loans to employee.The incremental disbursements of HFCs is estimated to have increased by 21 percent to approx. Rs 18,000 cr with incremental disbursements of HDFC, the leading HFC increasing 31 percent from Rs 7,616 cr to Rs 9,951 cr during 2002-03. However, the aggregate market share of HFCs as a whole declined. The HFCs have mostly lost market share to the banks with the worst hit being inflicted on the small and medium HFCs.

Financial institutions and their services offered: ICICI bank: ICICI Bank offers wide variety of Loans Products to suit the customer requirements. Coupled with convenience of networks branches/ATMs and facility of E-channels like Internet and Mobile Banking. Home loan: Attractive interest rates Door-step service from enquiry stage till final disbursement Can transfer the customer existing high-interest rate loan Free personal accidental insurance Special 100percentage funding for select properties

HDFC Bank: Home loan: A new home brings with it new hopes, joys and emotions. At HDFC, we have shared new hopes, joys and emotions with over 26 Lakh customers. Every customer has a specific and unique concern. Having earned an experience of 27 years in home loans, our home loan product is customized to provide the customer solutions for the customers unique concern. Features: Maximum loan 85percentage of the cost of the property (including the cost of the land) and based on the repayment capacity of the customer. Maximum Term 20 years subject to the customers retirement age. Applicant and Co- Applicant to the loan Home Loans can be applied for either individually or jointly. Proposed owners of the property will have to be co- applicants. However, the co-applicants need number be co-owners.

Purchase of:- Flat, row house, bungalow from developers Existing freehold properties Properties in an existing or proposed co-operative housing society or apartment owner's association First Power of Attorney purchases in Delhi for DDA flats allotted before 1992. Self Construction Purpose External repairs Tiling and flooring Internal and external painting Plumbing and electrical work Waterproofing and roofing Grills and aluminum windows Waterproofing on terrace Construction of underground/overhead water tank Paving of compound wall (with stone/tile/etc.) Existing Customer 100percentage of the cost of improvement New Customer 5percentage of the cost of improvement

Adjustable Rate Home Loan Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on the customers loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on the customers loan may change. However, the EMI on the home loan disbursed will not change*. If the interest rate the interest component in an EMI will increase and the principal component will reduce resulting in an extension of term of the loan, and vice versa when the interest rate decreases.

State Bank Of India (SBI)Housing Loan:Home is where the heart is! At SBI, we understand this better than most the toil and sweat that goes into building/ buying a house and the subsequent pride and joy of owning one. This is why our Housing loan schemes are designed to make it simple for the customer to make a choice at least as far as financing goes! Unique features: Insurance from SBI Life at confessional premium (Upfront premium financed as part of project cost) Interest applied on daily diminishing balance basis Plus schemes which offer attractive packages with confessionals interest rates, margins and processing fee to Govt. Employees, Teachers, Scientists, Employees in Oil sector, Journalists (in select cities) etc. Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Number cap on maximum loan amount for purchase/ construction of house/ flat Option to club income of the customers spouse and children to compute eligible loan amount. Provision to club expected rent accruals from property proposed to compute eligible loan amount Provision to finance cost of furnishing and consumer durables as part of project cost.

Axis bank home loanAxis Bank offers affordable and flexible housing loans that can turn your dream of owning a home into reality.If rising real estate prices have pushed the house you coveted beyond your budget, Axis Banks unmatched home loans will put it within reach. The attractive interest rates and minimal processing fees make our home finance products a first choice for savvy buyers. In addition, features such as flexible tenures, transparent processing and quick service have made our products stand out among the best home loans in India.We have products to suit every budget, taste and need. Whether you are self-employed or salaried, want a floating or fixed rate, Axis Bank will offer a loan that is just right for you.Features of Axis Bank Home LoansAxis Bank housing loans are designed for todays home-hunter. Our easy home loans are rich in features and offer a number of benefits.Attractive interest rates:We offer attractive interest rates that make your housing loans affordable and easier on your pocket every month.Flexible rates:Choose between fixed and floating rate options depending on which way you think interest rates are moving.Balance transfer facility:Not satisfied with your existing Home Loan provider? You can transfer your Home Loan to us without any hassles.Doorstep service:You don't have to go the bank for Home Loans; the bank will come to your doorstep. Perfect for those leading busy lives.Quick and transparent processing:Special Benefits available forPremium Bankingcustomers.

Oriental Home LoanHousing loan scheme is the nomenclature of Orient Home Loan. Henceforthe housing loan scheme shall be called Oriental Home Loan for all practical purposes including advertisement.Purpose:- Purchase of house and construction thereon. Construction of house, where in the plot/land already owned by the applicant. To buy built up (new or second hand) /semi built up house or flat. To extend/improve/repair , the existing house or flat. To buy a flat under construction or proposed to be constructed. For home furnishing, furniture/fixtures embedded to structure or otherwise. To take over of housing loan from other banks / other financial institutes.

Company profile State Bank of Patialais an associate bank ofState Bank of India. State Bank ofPatiala(SBP), originally namedPatiala State Bank, and currently an associate bank of theState Bank of India, was founded on 17 November 1917. SBP was founded byMaharaja Bhupinder Singh, Maharaja of theprincely state ofPatialaofUndivided India, and the functions of the Bank included the normal functions ofcommercial banks, as also some functions similar to functions of a central bankfor the princely state ofPatiala.After Indias independence, the Bank was made a wholly owned subsidiary of the Government ofPunjab. On 1 April 1960, SBP was accorded the status of an Associate bank of theState Bank Group. Presently, the State Bank of Patiala has a network of 1035 service outlets, including 1010 branches, in all major cities of India, but most of the branches are located in the Indian states ofPunjab,Haryana,Himachal Pradesh,Rajasthan,Madhya Pradesh,Jammu & Kashmir,DelhiandGujarat.

History

The rich heritage of State Bank of Patiala dates back to the year 1917, when it was founded by Late His Highness Bhupinder Singh, Maharaja of erstwhile Patiala state, with one branch by the name of 'Chowk Fort, Patiala' to begin with. The Bank, then known as the 'Patiala State Bank' was state owned and setup for the explicit purpose of fostering growth of agriculture, trade and industry. The constitution, scope and operations of the Bank underwent a sea change with the formation of the Patiala and east Punjab States Union (PEPSU) in 1948.The Bank was then reorganized and brought under the control of Reserve Bank of India.It was christened as the Bank of Patiala. Another milestone in history of the Bank was its becoming a subsidiary of the State Bank of India on 1st April,1960 when it was named as the State Bank of Patiala and since then it has grown significantly both in size and volume of business. During these glorious years, the Bank has been playing an important role in Banking sphere.Our Bank has now added a golden chapter to its history by fully networking all its brances on Core Banking Solutions on 08.08.2005 and become the first fully networkedPublicSector Bank in the country. Logo and Slogan The logo of the State Bank of Patiala is a blue circle with a small cut in the bottom that depicts perfection and the small man the common man - being the center of the bank's business. The logo came from National Institute of Design (NID), Ahmedabad and it was inspired byKankaria Lake, Ahmedabad. Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US. General informationPowers The Bank has delegated financial powers in respect of Advances and General Matters to its different functionaries through internal instructions. This includes financial powers delegated to various Committees like Head Office Credit Committee (HOCC)-I, Head Office Credit Committee (HOCC)-II, Head Office Credit Committee (HOCC III) and Zonal Office Credit Committees. Duties The duties of the Officers and employees are broadly described in the Officer Service Regulations and Award Staff Bipartite settlements, which are settlements at the Banking Industry Level. This apart, the Bank has internally issued various guidelines, instructions regarding the duties to be performed for various functional areas. Channels of Supervision Bank has well established channels of supervision for managing its day to day operations. The Bank follows the 'Maker and Checker' principle for its financial transactions, which are now under computerized system. This apart, the Controlling Offices, Zonal Offices and Head Office through official visits/ periodical meetings supervises the operations of various functionaries. Various checks/inspections through Audit i.e., Internal/Statutory/RBI etc., are done to ensure proper conduct of banking transactions. Accountability The Bank has approved policy for examining accountability through Disciplinary process for Award Staff and Officers separately. A separate Vigilance Department has also been set up at the Bank's Head Office.

Norms set to discharge its functions The Bank has laid down norms for acceptance of deposits, sanction of advances and other ancillary banking services like Lockers/Remittances/Cross Selling/Collections etc. Rules, Regulations, Instructions, Manual and Records There are a number of documents like Book of Instructions, Manuals, and Codified Circulars etc. Bank has well laid down and approved Policies, Rules, Regulations, Instructions, Manuals used by the Bank for discharging its various functions. We give a list of some of such guidelines as under: List of Policies framed by the Bank for different purposes Investment Policy. Domestic trading Policy. Policy on Derivatives. Operational Risk Management Policy. Integrated Risk Management Policy. Outsourcing Policy. Mobile Banking Policy. Policy on Disclosures under Pillar-III. Credit Risk Mitigation and Collateral Management Policy. Credit Risk Management Policy. ICAAP Policy.

STATE BANK OF PATIALA Profit and Loss account for the year ended 31st March 2014ParticularsScheduleYear ended 31st March 2014Year ended 31st March 2013

I.Income

Interest earned 13 10156608495642626

Other Income 14 87128527588247

Total110278936103230873

II.Expenditure

Interest expended 157560486171134267

Operating Expenses 162019096916678512

Provisions and contingencies100070668750543

Total10580289696563322

III.Profit

Net Profit for the year44760406667551

Profit brought forward00

Total44760406667551

IV.Appropriations

Transfer to Statutory reserves11190101666888

Transfer to other reserves22458072591971

Transfer to Capital reserves21999658702

Interim Dividend(including Tax thereon)117001057625

Proposed Dividend(including Tax thereon)00

Transfer to/from Investment Reserve Account-150473192365

Transfer to Special Reserve under Sec.36(1)(viii) of Income Tax10300001100000

Transfer to SBOP Retired Employees Medical Fund00

Total44760406667551

Earning Per Share151.55226.21

Significant Accounting Policies 17

Notes to Accounts 18

STATE BANK OF PATIALA BALANCE SHEET AS ON 31st MARCH 2014 ScheduleAs on 31st March 2014As on 31st March 2013

Capital & Liabilities

Capital136785002947500

Reserves and Surplus25763558250471941

Deposits3896731563886720838

Borrowings412386234788406010

Other Liabilities and Provisions 55929934756959979

Total11412073391085506268

Assets

Cash & Balances with Reserve Bank of India68145770740072469

Balances with banks & money at call & short notice72039731597303

Investments8245811100239566611

Advances9759365586737997914

Fixed Assets1041066883414523

Other Assets114842652763857448

Total11412073391085506268

Contingent Liabilities12305876633390886484

Bills for Collection4039442960482078

Significant Accounting Policies17

Notes to Accounts18

VisionTe be amongst most trusted power utility company of the country by providing environment friendly power on most cost effective basis, ensuring prosperity for its stakeholders and growth with human face.

Mission To ensure most cost effective power for sustained growth of India. To provide clean and green power for secured future of countrymen. To be a technology driven, transparent organization, ensuring dignity and respect for its team members. To continuously upgrade & update knowledge & skill set of its human resources. To achieve excellence in every activity we undertake.

Introduction to Home Loan

Every human being aspires to have his own house to live in. After food and clothing, housing is the third most important human requirement. On an average a person spends almost two-thirds of his life in a house which is his sanctuary in his old age. Adequate housing is therefore a fundamental need of human beings and an essential pre-requisite for physical, intellectual and mental development. Blessed are those who live in their own house and fortunate are those who have the money to buy one. But all are not privileged to buy a house of their own. For many such less privileged, buying a house has become possible in modern times through housing loans. Though shelter was enshrined as a fundamental right in the constitution, housing did not get the attention it reserved. This was perhaps due to the fact that at that time nobody expected the problem of housing to assume the present gigantic proportions. Proper housing, even at a lower scale, has never kept pace with the minimum requirements of the people. The objective of this report is to study Customer Perception and Attitude towards home loan. For this survey was conducted through structured Questionnaire. In todays competitive business world every customer is significant for the lending home loan. The customer expectations are very high so it should be kept in mind and offer them best possible service. The housing backlog has been compounded by the high rate of population growth. Inadequate housing facilities have led to the rapid growth of slums and unauthorized settlements, poor quality of services, housing land prices and increasing costs of construction. In rural areas, the situation is even more alarming. The Government and some public sector undertakings have been trying to tackle the problem but their efforts do not much even the fringe of the problem. The central and state governments cannot solve this problem. So the Life Insurance Corporation of India and housing societies entered the field of housing loans for their customers. Today these are 350 housing finance companies registered with the registrar of companies, of these 29 have been approved by National Housing Bank for financial assistance. The housing finance industry has been borrowing at the rate of nearly 35% for the last two years. Over the last 3 years Commercial banks and Private sector banks have been playing an important role in housing finance. All Commercial banks and Private sector banks are now emerging as lenders in the segment, taking a slew initiatives in the form of opening dedicated outfits/cells to cater to the ever-increasing demand for housing loans, offering competitive interest rates with fixed/ variable options, Waiver of processing fee, Free additional attractive packages and flexibilities in housing loan Schemes. Generally the traditional trend of the term Housing Loans or Housing Finance means finance for buying or modifying a property. Hence Housing Finance may be defined as the financial resources for an individual or a group of persons used facially for the purpose of housing. A study of the housing loan schemes offered by public sector banks and private sector banks would pave the way taking certain policy decisions for improving these housing loan schemes.

ADVANTAGES OF HOME LOANSThe various benefits of home loans arising to the customers are :-1.)Attractive interest rates:-The various banks offer attractive interest rates to boost and help their customers. Many banks provide loans on fixed or floating rates to facilitate consumers as per theirneeds.2.) Help in owning a home:-The home availed by a person with the help of banks, because they provide technical and financial assistance to customers for owning their dream home.3.) No requirement of guarantor:-The commercial banks now a day, liberalize their laws regarding home loans. Some of banks dont even require the guarantor to grant loan to their consumers. They also make consumers free by reliving him to find a guarantor to complete the proceedings of availing loan.4.) Door step services:-These door to step services are provided from enquiry stage to the final disbursement takes place such services arebeneficial for customers in present busy life. Bankslike ICICIbank and standard chartered bank provide door to step services to customers to borrow loan.5.) Loan period:-There are many banks which provide maximum loan tenures upto 15-20 years based on the loan amount and the creatibility of customers. This relieves the customers to repay loan amount till a long period.

DISADVANTAGESOF HOME LOANS

The main disadvantages of home loans are high lightened as below:1.)Delays in processing :-Many times, there arehuge delays inprocessing ofproviding homeloans because various formulations to be fulfilled in this process. Due to these delays customers feel mentally as well as financially weak.2.) Fluctuating interest rates:-Some banks give home loans at floating rates, which fluctuate at Different intervals due to some reasons. These changes sometimes, may lead to increase in interest rate which will increase the cost of home loans tothe customers3.) High cost:-The public sector banks charge high processing cost for home loans sanctioning. They are forced to pay serious charges at various stages to fulfill the requirements. Some consumers are not able to pay such charges so such people could not avail the benefits ofhome loan schemes.4.) Problems in Disbursement:-There are many problems in disbursement of home loan amount. There are some delays in disbursement of loan amount to the customers due to legal formalities. This causesproblems to the customers. These are limitations or disadvantages ofhome loans.But sometimessome banks charges high installments to repay loan amount. Such also causes problem to customers

These limitations can be removed by providing good and pro mote services to the customers. DISBURSEMENT OF HOME LOANS

Theeverybankhasitsownproceduretodisbursetheloanamountamong customers. After choosing your right home, the next step is disbursement of home loans. The loan amount is disbursed after identifying and selecting the property or home that arepurchased andsubmit the requisitelegal documents. Inthe disbursement ofhome loans a clear title and full verification to ensure that a person has full rights on his house. The 230Aclearance of seller and /or 371 clearances from the appropriate authority of income tax is also needed.

(i.)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 HousingFinance Institutions or Banks will let the customer know that how much he/she is eligible for and this helps to plan out the budget.

(ii.)Conditions regarding co-applicants:-All Housing Finance Institutions lay down conditions on who can be co-applicants all co-owners to the property need to be co-applicants to the loan necessarily. These institutions do not permit minors to join in as either co owner or as co-applicants because a minor is not eligible to enter into a contact as per law. They do not permit even friends or relatives who are not blood relatives to take a property jointly. However, Income of co-applicants can be clubbed together to get higher loan eligibility. Given below is a Table that throw light on acceptable relationship of a co-applicant for clubbing of income.

Income Clubbing of Co-applicants: It is asfollows:-Combination Income Clubbing: -

Husband-Wife: -Income of husband-wife can be clubbed.

Parent - son:-- It can be clubbed if only son is there but not if any male sibling exists.

Brother-Brother:-- If they are currently staying together and intend to stay together inthe new property, then only, their income-canbe clubbed forabove purposes.

Brother-Sister:-- No clubbing-is possible.

Sister-Sister : -No clubbing is possible.

Parent-Minor- Child:-- No clubbing is possible in this case also.

iii)General TermsandConditions:-Thefollowingarethetermsandconditions applicable to the basic home loan product only. These are likely to change on the basis ofthe variations of the home loan product. Typically, in general home loans, the following conditions are applicable :- The loan to value ratio (LTV) cannot exceed a particular percentage. This differs fromproducttoproductandfromoneHousingFinanceInstitutionalBank(HFI/B)toanother. The components of the value of the Property calculated here are covered undercost of property.

The maximum tenure of the bank is nominally fixed by HFI/Bs. However, HFls/Bs doprovide for different tenures with different terms andconditions.

The installment that one pay is normally restricted to about-50-per cent of the monthly-gross income of the candidate.

The total monthly outflow towards all the loans that havebeen availed of, including the current loanis normallyrestricted to50% ofthe grossmonthlyincome.

One will be eligible for a loanamount which is the lowest as per one'seligibility. This is calculated as per the LTV norms, the HR, norms and the FOIR norms as mentioned above.

MostHFls/Bsconsidertheprofilebeforethey judgetherepaymentcapacity.Thejudgement is based on age, qualifications, number of dependents, employment details, employer credentials, work experience, previous track record of repayment of any loans that have been availed of, occupation, the industry to which the candidate's business relates to, if he/she is self-employed, then the turnover in the last 3-4 years etc.

Some HFIs/Bs insists on guarantees from other individuals for the repayment of the loan. In such cases, the customers has to arrange for the personal guarantee before the disbursement of the loan takes place. The property should be technically clear before the HFIs/Bs disburses the loans amount. Most of institutions and banks have a teams of technical experts who visit the site to get a technical report before the disbursement of loan. This is also beneficial to the customer as they check for the technicalquality and compliance with local laws. The property should be legally clear before one can avail of a disbursement of the loan amount. Housing-Finance Institutions /Banks (HFIs/Bs) take legal clearance from theirlawyers before the disbursement of amount. This proves to be beneficial to the customers as a legal expert checks his/her documentation to ensure that he/she get a proper title to theproperty. The disbursement of the loan is as per the progress of construction of the property unless it is a ready property in which case the disbursement will be by one single cheque. PEMI or simple interest on the loan amount disbursed to the customer in case of a part disbursement will be payable by the customer on the disbursement. The disbursement in most cases will be favoring the builder or the seller or the society or the development authority as the case may be. The disbursement will come in the customer's favour under specialcircumstances only. The repayment of loancan be madeeither through deduction against salary, post-dated cheques, standing instructions or Auto debit instructions tobank. The above terms and conditions are generally true for most Housing finance Institutions/Banks with respect to the general Home Loans. However, the specific terms and conditions vary with respect to special Housing Finance Institutions or Banks.

(iv) Charges applicable to home loans :-The different kinds of charges applicable to home loans are discussed belowa.)Processing fees:-First of all, comes the process fee. This is a charge that is levied by most HFls/Bs. This has to be paid at the time of submission of the application form. It's normally charged as a percentage of the loan amount sanctioned. Some HFls also charge a flat fee based on the loan amount instead of a percentage. When a lower amount is sanctioned the excess fees paid at the time of submission of the application is adjusted with the charges, which one make to the HFI/B subsequently. Most HFls/Bs refund the processing fee if the loan application is rejected.b.)Administrative fees:-This charge is again, normally, a percentage of the loan amount sanctioned. It iscollectedbytheHFI/Bforthemaintenanceofcustomer'srecords,issuinginterest certificates, legal charges, technical charges, etc. though the tenure of the loan. It is payableby the customer when he/she accepts the offer letter given by the HFI/B. This payment has to be made before the availment of the disbursement. The mode of collection of these fees varies from one HFI/Bto another.c.)Rateofinterest:-This is the rate of interest applicable on the loan amount through the tenure of the loan. It is charged on the principal monthly reducing method. Most HFIs/Bs give an option to select either a fixed rate of interest or avariable rate of interest.d) LegalCharges:-Some HFIs/Bs mainly Public Sector Banks levy legal charges that they incur on getting the property documents vetted by their panelof lawyers.

e) TechnicalCharges:-These charges are also levied by certain Housing Finance Institutions/Banks(HFIs/Bs) to meet their expenses on thetechnical site visits to the customer's property. This ensures quality of construction and construction within the norms as stipulated by the respective approvalauthority.f) Stampdutyandregistrationcharges:-HFIs that go in for a registered mortgagepass these charges on to the customer. These are rather heavy in certain states depending on the laws laid down by the state where onebuy a property.g) PersonalGuaranteefromCharges:-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.h.) Cheque BounceCharges:-In case the cheques through which one make a payment to HFls get dishonored, some minimum charges are levied by the HFI. The same arerecovered from the customer.i.) Delayedpaymentcharges:-HFls/Bs charge delayed payment charges from the customer if he/she delays thepayment of installments beyond the due date.j.) 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.

Types of home loans Housing loans offered by banks are of different types:-

Home Purchase Loans

Home Construction Loans

Home Improvement Loans

Home Extension Loans

Home Conversion Loans

Land Purchase Loans

Stamp Duty Loans

Bridge Loans

Balance Transfer Loans

Refinance Loans

Loans to NRIs

Home purchase loansThis is the basic for the purchase of a new home. If you want to buy a flat in some society or some already built house, banks and HFCs sanction you homepurchase loans for this process.

Home construction loansThis loan is available for the construction of a new home on a said property. The documents that are required in such a case are slightly different from the ones you submit for a normal Housing Loan. If you have purchased this plot within a period of one yearbefore you started construction of your house, most HFCs will include the land cost as a component, to value the total cost of the property. In cases where the period from the date of purchase of land to the date of application has exceeded a year, the land cost will not be included in thetotal cost of propertywhile calculating eligibility.

Home improvement loansThese loans are given for implementing repair works and renovations in a home that has already been purchased, for external works like structural repairs, waterproofing orinternal work like tiling and flooring, plumbing, electrical work, painting, etc. One can avail of such a loan facility of a home improvement loan, after obtaining the requisite approvals fromthe relevant building authority.the following are comingunder thehome improvement loans:

External repairs

Tiling and flooring

Internal and external painting

Plumbing and electrical work

Waterproofing androofing

Grills and aluminum windows

Waterproofing onterrace

Construction of underground/overhead water tank

Paving of compound wall (with stone/tile/etc.)

Borwell.

Home extension loansAn extension loan is one which helps you to meet the expenses of any alteration totheexistingbuildinglikeextension/modificationofanexistinghome;forexampleaddition of an extra room etc. One can avail of such a loan facility of a home extensionloan, after obtaining the requisite approvals from the relevant municipalcorporation.

Home conversion loansThis 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. Throughahomeconversionloan,theexistingloanistransferredtothenewhomeincluding the extra amount required, eliminating the need for pre-payment of the previous loan.

Land purchase loansThis loan is available for purchase of landfor both home construction or investmentpurposes.

Stamp duty loansThis loan is sanctioned to pay the stamp duty amount that needs to be paid on thepurchase ofproperty.

Bridge loansBridge Loans are designed for people who wish to sell the existing home andpurchase another. The bridge loan helps finance the new home, until a buyer is found forthe old home.

Balance- transfer loansBalance Transfer is the transfer of the balance of an existing home loan that you availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a lower rate of interest.

Refinance loansRefinance loans are taken in case when a loan for your house from a HFI at aparticular ROI you have taken drops overthe years and you stand to lose.In such cases you may opt to swap your loan. This could be done from either the same HFI or another HFI at the current rates ofinterest, which is lower.

NRI home loans

This is tailored for the requirements ofNon-Resident Indians who wish to build orbuy a home or property in India. The HFCs offer attractive housing finance plans orNRIinvestors with suitable repayment options. On would be entitled for home loans in the range of Rs 5 lakh to a maximum of Rs 1 crore,based on the repayment capacity, previous credit history and the cost of the property.

Taking home loans these days has become simpler. With the RBI regularly bring down interest rates; taking home loans have become extremely easy. Housing loans which were 16.5% to 18% a few years ago fell by 11.5% to 13%. With interest rates going down,people increasingly number apply to take these loans. Some of the leading banks offering home loans in India, including ICICI Bank, IDBI Bank, HDFC Bank State Bank, Bank ofBaroda, Kotak Bank, SBI, Standard Chartered Bank and Axis Bank.

Stages of home loan

The representation shown above is not a perfect copy of the actual process. This is because these stages are taking place simultaneously and one application is being taken care for by the experienced employees of both SBP Ltd service centre and SBP Ltd. HUB (also called the back end office).Also the applicant may be asked to send information or may be asked questionsregarding hisrequirement and/or hisdocumentsfor hisown convenience. Hence the loan application may or may not shuttle through different stages:-

Submission of Application Form: -After choosing a particular home loan, the customersubmits the application form to the housing finance company (HFC) along with otherrelevant documents as required by the HFC. They comprise documents to establish income, age, residence, employment, investments, etc. The customer also needs to hand over a cheque for payment of an up front (non -refundable) processing fee of about 0.5-1% of the loan amount to the HFC.

Validation of the Information: -In the next stage, HFCs validate the informationprovided by the customer on the application form. They usually conduct checks on the residential address of the customer, the place of employment of the customer, and credentials of the employer. Some HFCs may insist on a personal interview with the customer and perform a reference check on the references provided by the customer on the application form.

Issue of Sanction Letter :-After due appraisal of customer profile, a sanction letter is issued which contains details such as loan amount, rate of interest, annual / monthly reducing balance ,tenor of the loan, mode of repayment and general terms and conditions of the loan. This is the actually the approval of the money lending procedure by the company. However, the money is sanctioned only after the documents and the property onbehalf of which the loan is being granted is thoroughly verified.

Submission of Documents: -Once the sanction letter is passed, the customer is required to leave the entire set of original documents pertaining to the property being purchased with the HFC as security for the loan amount sanctioned. These documents remain in the custody of the HFC till the time the loan is fully repaid. Once the documents are handed over to the HFC, they send all the documents for a thorough legal scrutiny.

Validation of Property: -Prior to disbursement, the HFC also conducts a site visit to the customer's property to ensure that all construction norms have been adhered to properly. Once the HFC is satisfied that the property is legally and technically clear, they disburse the loan amount. The disbursement from the HFI is on the basis of the stage of construction of the property.

Payment Procedure: -Once all the above mentioned process, the borrower is entitled to take the money from the lender party. Until such time that the entire sanctioned amount I snot drawn, the customer is supposed to pay a simple interest on the Actual Amount drawn (without any principal repayments). The EMI payments commences only after the entire sanctioned loan amount is drawn.

Home Loan Scheme NomenclatureHousing Finance Scheme is the nomenclature of HOME LOAN. Henceforth the housing loan scheme shall be called SBP HOME LOAN for all practical purposes including advertisement.Scheme Objective- Government/RBI/BankThe Government of India vide various National Policy Pronouncements have reinforced the primacy of the Housing sector and emphasized the need to provide shelter opportunities to all. In pursuance of National Housing Policy of Central Government, RBI has been facilitating the flow of credit of housing sector. During recent years the housing has emerged as one of the sectors attracting a large quantum of Bank finance. Therefore, the current focus of RBI regulation is to ensure orderly growth of housing loan portfolio of the Banks with minimum risk.RBI Specific GuidelinesThe following types of Bank finance may be included under direct housing finance: Bank Finance extending to a person who is also owing a house in town/village where he resides, for buying/constructing a second house in the same or other town/villages for the purpose of self occupation. Bank finance extended for purchase of a house by a borrower who proposes to let it out on rental basis on account of his posting outside the headquarters or because he has been provided accommodation by his employer.However if the applicant intends to have more than two houses, the exposure for the third unit house onward may be treated as CRE exposure and falls under the definition of income producing real estate as the borrower may be renting these units and the rental income would be the primary source of repayment. Further, no loan should also be given in respect of the properties meant for residential use, which the applicant, intends to use for commercial purposes, and declares the same while applying for loan.

SBP Home loan schemeHousing loan continues to be the thrust area for lending for the bank. To accelerate the pace of home loan financing and establishing the brand image of home loan product, a study was conducted with the aim to have the best home loan policy. Consequently, a modified and competitive home loan scheme has been designed not only to suit the requirements of our prospective customers but also to attract high ticket home loan customers on one of the best terms of industry.

Highlights Lowest rate of interest is 10.25%. For Loan upto Rs.25 lac: 0.25% of loan amt. min. Rs. 1000/- Eligibility for loan highest in the industry. Smplified procedure. Tailor made repayment option. Concession in interest on car loan & other retail loans to Home loan borrowers. Special concession in interest rate to existing depositor & borrower. Customized scheme for group borrowers with concession in rate of interest. Top-up loans available to existing borrowers. The loan should be repaid up to the age of 70 years. Option for group Mortgage Insurance Scheme is available on low premium.. Flexible repayment options to suit individual needs. Offer in-house scrutiny of property documents. Home extension loan for extension of an existing dwelling unit under the same terms as applicable to home loan. Fixed Rate, Floating Rate and options to structure loan as partly fixed or partly floating. No documentation fee. No pre-payment penalty.Purposes

To purchase or construct a new/old house/flat. To repair/renovate/extend/alter an existing house. To purchase ready built flat/house/apartment from cooperative Group housing societies/ State Govt. housing Board/other Govt. agencies/ private builders of repute. To furnish/purchasing consumer durables for a new house under Total Home Loan Scheme. To buy a flat under construction or proposed to be constructed. For home furnishing, furnitures / fixtures embedded to structure or otherwise. To take over of housing loan from other Banks/other financial institutes.Eligibility:- Purchase of flat, raw house, bungalow from developers. Purchase of existing freehold properties. Purchase of properties in an existing or proposed cooperative housing society or apartment owners association. Purchase of first Power Of Attorney purchases in Delhi for DDA flats allotted before 1992. Construction of own house.Normally individuals over 21 years of age with a steady source of income will be eligible to avail loan under the scheme. The loan should be repaid up to the age of 70 years.

Loan Amount:-No limit, subject to:- Net Annual Income (NAI)EMI/NMI Ratio

Upto Rs. 2 lacs 40.00%

Rs. 2 lacs to Rs. 5 lacs 50.00%

Above Rs. 5 lacs 55.00%

For repair/renovation etc. 90% of the project cost i.e. estimated cost of repairs, renovation or alteration with a ceiling of Rs.10.00 lacs.

Loan to Value Ratio:-Up to Rs. 20 lacs:- 90% AboveAbove Rs. 20 lacs to Rs. 75 lac :- 80% Above Rs. 75 lac:- 75%

Repayment:- 25 years under Floating interest rate option. 10 years under Fixed interest rate option.

( Base Rate = 10.25% p.a.)

Interest Rate (Per Annum) Loan AmountLinkage with Base Rate over the tenor of the Loan Present Effective Rate

Upto Rs. 30 LacsAt Base Rate 10.25%

Above Rs. 30 Lacs and upto Rs. 75 LacsAt Base Rate 10.25%

Above Rs. 75 LacsAt Base Rate 10.25%

INTEREST RATES UNDER FIXED OPTION 12.75% p.a. but repayment permitted up to 10 years only with 2 year reset clause.

Processing Fees

For Loan upto Rs. 25 lacs: 0.25% of loan amt. Min. Rs.1000/- For Loan above Rs. 25 lacs and upto Rs. 75 lacs: Rs. 6500/-For Loan Above Rs. 75 lacs: Rs. 10000/-DURING CAMPAIGN PERIOD (EXTENDED UPTO 31.08.2014)

A Flat Rate of Rs.1000/- Per Application, Irrespective of Loan Amount and Tenor of Loan

Pre-Payment/preclosure penaltyNo pre-payment / pre-closure penalty for all Home Loans

Loan available At all branches of State Bank of Patiala.

Review of Literature

Review of Literature

Mylonakis (2007) in his study on Customer Preferences in the Home Loans Market concluded that the important influential factors attributed are the various offers of banks, the banks reputation, existing cooperation, as well as bank staff. Bank branches proved to continue constituting the organization.

Chaudhary and Janjhua (2011) examined the satisfaction level and problems faced by customerswhile 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. They 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.

Vanaja and Sindhuja (2013) studied the customers perception on the home loans offered by HDFC Limited, the factors influencing customers in choosing a housing finance agency, reasons for pre closure of home loans and customers opinion about the Electronic Clearing Service of HDFC Limited. The study showed that on a majority, the customers agree that the peoples service, products and processes are effective. The company can improve the service of updating repayments and conveying information about RBI guidelines and interest rate changes by enabling automatic generated SMS or e-mails to be sent or through tele calling the customers within a time limit of one or two weeks. The major factors that influence customers in choosing housing finance company are competitive interest rate, flexible repayment system, progressive funding and prepayment penalty, which if focused by HDFC can attract new customers and can also retain loyal customers in the long run. Awareness about the home loan products can be created through display boards within the office and newspaper inserts.

Research Methodology

R E S EA R C H M ET HO DOLOGYThe present study is an attempt to research Customers Perception Towards Home Loan of SBP Ltd.. This chapter discusses in detail the objectives and the sample of the study. Presentation tools along with the limitations of the study are also discussed.

OBJECTIVES OF STUDYThere is no strongest foundation for your dream home, than a cheap loan. Home loans havebecome that stronger foundations for people who want to own a home. The main objectives of the study are as follows :-The main objective of this study is to know the Customers perceptions about home loans of SBPLTD. To study thesatisfaction level of customers abouthome loans.

To study the problems faced by customers in obtaining the home loans.

To learn about various aspect ofSBP home loan ltd.

SAMPLING PLAN: -

Sampling size: This refers to the number of items to be selected from universe. 60 respondents were selected.Sampling Technique: Sampling Technique used in this study is judgemental Sampling.SOURCES OF DATA: -

Primary Data: -Primary Data has been used in the present study. Survey method was adopted for collecting primary data. Survey is conducted through questionnaire.Data presentation tools:- Pie Diagram.

LIMITATIONS OF THE STUDY: -Although I have done sincere efforts to collect the authentic and relevant information, But no study complete in itself, however good it may be and every study has some limitations: - TIME AND COST: - Time and cost are some of the factors that have affected the survey, so the picture may not be so accurate.

LIMITED SCOPE: - Study is confined to the region of Amritsar only.

SMALL SAMPLE SIZE: - Small sample size has been taken; the possibility of sampling errors cant be ruled out in the research study.

HARD TO FETCH INFORMATION:- Customers are not willing to disclose all the information.

GAP BETWEEN TRUTH AND OBSERVATION:- Since the study is based on pre designed questionnaire there is possibility of error due to the gap between truth and observation.

Data Analysis and Interpretation

Analysis and Interpretation:-This analysis is based on the responses given by customers through questionnaires:- Age group of surveyed respondents Age group No. of Respondents Percentage

26 35 years 30 50%

36 49 years 20 33%

50 60 years 10 17%

Total 60 100%

Analysis :- From the chart above we find that 50% of the respondents fall in the age group of 26-35 years, fall in the age group of 33% of respondents fall in the age group of 36 49 years . Education qualification of respondentsSr. No.CategoryNo. of respondentsPercentage

1Under graduate1017%

2Graduate3050%

3Post graduate2033%

Total60100%

Interpretation:-From the table and graph above it can be seen that:- 17% respondents are under graduate. 50% respondents are Graduate. 33% respondents are post graduate. Customer profile of surveyed respondents:-OccupationNo. of respondentsPercentage

Professional2033%

Self-employed1525%

Salaried1525%

Others1017%

Total60100%

Interpretation:-From the table and graph, it can be seen that:- 33% of respondents are working professionals. 25% of are self-employed. 25% are salaried and rest 17% of respondents belongs to other category. Annual household Income:-Sr. No.CategoryNo. of respondentsPercentage

1Less than 1 lakh2847%

21 5 lakhs1525%

35 10 lakhs1220%

4More than 10 lakhs58%

Total60100%

Interpretation:-From the table and graph above, it can be seen that:- 47% respondents annual household income is less than 1 lakh. 25% respondents annual income is between 1 to 5 lakhs. 20% respondents annual income is between 5 to 10 lakhs. 8% respondents annual income is more than 10 lakhs.

Purpose of Home loanPurposeNo. of respondentsPercentage

Home construction2542%

For renovation1525%

Land purchase1525%

Home purchase58%

Total60100%

Interpretation:-From the above table and graph, it can be seen that:- 42% of respondents purpose of taking home loan is home construction. 25% of respondents purpose is for renovation. 25% of respondents for land purchase. 8% for home purchase. Reason for getting it financed:-ReasonNo. of respondentsPercentage

Non availability of funds3050%

Reluctance to pay cash in go1525%

Tax benefit1525%

Total60100%

Interpretation:- To interpret the response of questions, the figures shows that most of the customers find the problem in availability of funds i.e. 50% and very less number of customers found problem in paying cash in go is 25%,customers get housing loan for tax benefit is 25%. This was expected response because a large number of people find a problem in availability of funds which works an obstacle in owing a dream home. In todays life people hardly earn both means and ends of life and they dont have much of money to buy home or a land to construct house because of cost of property. On the basis of this study, it is concluded that most of people lack of money in fulfilling their dreams and few of them are reluctant to pay cash in one go and wanted to pay their home loan slowly in installments. Factors Considered By Respondents while availing home loan (5- for Most Important, 1- for Least Important)

Sr. No.Particulars 5432 1TotalWeighted Average Score

1Service75401520201702.8

2Interest rate10060451052203.6

3Trust15040301052354.0

4Pay back period65483324121823.0

5Location1086020261242.0

Interpretation:- From the above graph, it can be seen that 4.0 respondents consider trust while availing home loan and 2.0 respondents consider location while availing home loan. Sources of information regarding Home LoanSr NoParticularsRespondents

Percentage of Respondents

1Electronic Media1525%

2Print Media1525%

3Friends/Relatives2033%

4Agents1017%

5 Total60100

Interpretation: - From the above graph it is clear that, 33% of the respondents gather information regarding home loan from friends/relatives, 25% of the respondents gather information from print media, 25% of the respondents gather information from electronic media, and 17% of the respondents gather information from agents. Time Taken For Sanctioning Of Home LoanSr NoParticularsNo. of Respondents

Percentage of respondents

115 days3558%

21 month1113%

3More than 1 month1417%

4Total60100

Interpretation: -From the above graph it is revealed that , 58% of the respondents said that 15 days was taken by the bank for sanctioning of home loan, 17% said that more than 1 month was taken, 13% said that 1 month was taken,12% of the respondents said that 1 week was taken. Respondents Repayment PeriodSr NoParticularsNo. of Respondents Percentage Of Respondents

1Less than 5 years712%

26-10years1017%

311-15years1830%

415-20 years2542%

5TOTAL60100

Interpretation: -From the above graph it is clear that, 42% of the respondents have availed home loan for 15-20 years, 30% have availed for 11-15 years, 17% have availed for 6-10 years, 12% have availed for less than 5 years.

Any problem in getting loan?

OptionsFrequencyPercentage

Yes4575%

No1525%

Total60100%

Interpretation:-From the table and graph above, it can be seen that:- 75% of respondents face problems in getting home loan. 25% of respondents dont face such problems. It is seen that the problems faced mostly because of lack of knowledge and non-cooperation.

If yes, then,:- Problems faced while getting Home loan:-Problems FrequencyPercentage

Lack of Knowledge3067%

Procedural delays1533%

Total45100%

Interpretation:-From the above table and graph, it can be seen that:- 67% of respondents face problem in getting home loan because of lack of knowledge. 33% of respondents face problem because of procedural delays Rate your preference on the following factors, with regards to your bank

FactorsHighly SatisfiedSatisfiedNeutralDissatisfiedHighly DissatisfiedSummated ScoreAvg. Score

Range of schemes15040301052354.0

Services provided by the bank1086020261242.0

Trust10060451052203.6

Interest Rate75401520201702.8

Interpretation:- From the above graph,it can be seen that 4.0 respondents prefer range of schemes,3.6 prefer trust and 2.0 respondents prefer services provided by bank. Would you like to shift from the loan services of present bank?

OptionsNo. of respondentsPercentage

Yes1017%

No5083%

Total60100%

Interpretation:-From the above table, it can be seen that:- 17% respondents wants to shift the loan services of present bank. 83% respondents are satisfied.

Would you like to recommend the name of your bank to other persons?OptionsNo. of respondentsPercentage

Yes5083%

No1017%

Total60100%

Interpretation:-From the above table, it can be seen that:- 83% respondents wants to recommend the name of bank to other persons. 17% respondents dont want to recommend the name of bank to other

Conclusion and Recommendation

FINDINGS & SUGGESTIONS Among the various loans offered the researcher found that most of the customer availed home loan whereas the takers for Mortgages and Housing loan are relatively less i.e. 44 percentages have availed home loan. 31 percentages are auto loan and 16 percentages are of consumer durable loan respectively. 4 percentages are of personal loan and 2 percentages are of mortgages respectively. Hence it is recommended for the company to aggressively advertise these loan facilities in both newspapers and television channels so that many people may be aware of the same.

From the market research study it has been observed that 90% of the respondents are aware of home loan. 62% of the respondents are aware of home loan through agent. It was founded that 63% of the respondents are rate the service of home loan as very good. 90% of the Existing Customers are Happy with the Benefits of home loan.

SUGGESTIONS The home loan company should concentrate heavily on attractive advertisements and various Promotional Strategies like, giving Pamphlets, put the hoardings and banners at important locations People should be educated by giving seminar in Business Conferences, installing stalls in Business Exhibitions. And Company should conduct seminars in Educational Institutions to provide information about company and its products. Company has to create a sense of security among the customers because most of the people fear about security. CONCLUSION

The results and findings of this research study exemplifies the fact that an in- depth market research has been conducted and all research work has been conducted and all the objectives set for the research work has been fully accomplished and the analysis is also performed to the maximum extent possible. An in-depth study has been made on the aspect that influences the banks to be the best private financier. Customer satisfaction is the core element in the business. For customer satisfaction the services have to be an edge over the other banks, which banks have achieved. Banks is aptly targeted potential customers among the various levels of people in India. The banks overall performance and services seems to be highly satisfied. From the analysis it is found that some customers have faced some procedural problem, for which the researcher has given some suggestions and recommendations. Banks has got goodwill and reputation among the public and this can be used for promoting it services. If new promotional activity and services introduced, it will help very much the organization to increase the business.

REFERENCES

Chaudhary, R. and Janjhua, Y.(2011), Customer Perceptions and Satisfaction Towards Home Loans, International Journal of Research in Commerce & management, 2(9) , 124-129.Kothari, C.R.(1995), Research Methodology, New Age Publishers, New Delhi.Kotler, P.(2004), Marketing Management, New Delhi, Prentice-Hall of India Pvt .Ltd. Mylonakis, J. (2007), A Research Study ofCustomer Preferences in the Home Loans Market The Mortgage Experience of Greek Bank Customers ,International Research Journal of Finance and Economics, 10, 153-166. Vanaja, V. and Sindhuja, J.(2013), A Study on Customer Perception towards HDFC Limited, International Journal of Management Sciences and Business Research , 2(4), 69-81. Websites referred www.citifinancial.co.in www.sbp.co.in

Annexure

QUESTIONNAIREDear Respondents, I, xxxxx, student of MBA 3rd Semester of xxxxxxxxxxx, Amritsar, am conducting a survey on Customers Perception towards Home Loan towards SBP Ltd. Please co-operate to fill this questionnaire. It is assured that this information will be kept confidential. A..Demographic Profile:-Name: ______________________________

Age:

a26-35 b36-49 c)50-60

What is your education qualification?(a.)Under graduate [ ] (b) Graduate [ ] (c) Post graduate [ ]

Occupation:(a) Professional [ ] (b) Self-employed [ ] (c) Salaried [ ] (d) Others [ ]

Which income group do you belong? (Per annum)(a) Below 1 lakh [ ] (b) 1-5 lakhs [ ](b) 5-10 lakhs [ ] (d) 10 lakhs and above [ ]

B..Content Information1.)For what purpose, you have taken home loan?(a) Home Construction [ ] (b) For renovation [ ](c) Land purchase [ ] (d) Home purchase [ ]

2.) What is reason for getting it financed? (a) Non availability of funds [ ] (b) Reluctance to pay cash in go [ ] (c) Tax benefit [ ]

3.) Rate the following factors considered while availing home loan from specified bank (5- for Most Important, 1- for Least Important)? (a) Interest rates [ ] (b) Service [ ] (c) Trust [ ] (d) Location [ ]4.) From where have you got information regarding home loan Schemes? (a) Print Media [ ] (b) Electronic Media [ ] (c) Friends& Relative [ ] (d) Agents [ ]

5.) How much time was taken by your bank for sanctioning of home loan? (a) 1 week [ ] (b) 15 days [ ] (c) 1 month [ ] (d) More than 1 month [ ]

6) What is your repayment period? (a) Less than 5 years [ ] (b) 6-10years [ ] (c) 11-15years [ ] (d) 15-20 years [ ]

7.) Do you face any problem in getting loan? (a) Yes [ ] (b) No [ ]

8.) If yes, then which problem? (a) Lack of knowledge [ ] (b) Procedural delays and non cooperation [ ] (c) Any other (please specify) _______________________________

9.) Rate your preference on the following factors, with regards to your bank

FactorsHighly SatisfiedSatisfiedNeutralDissatisfiedHighly Dissatisfied

Range of schemes

Services provided by the bank

Processing time

Interest Rate

Pay Back Period

10) If given an option, would you like to shift from the loan services of present bank? (a)Yes [ ] (b) No [ ]

11) Would you like to recommend the name of your bank to other persons? (a)Yes [ ] (b) No [ ]

12) Any Suggestions you want to make to your bank regarding Home Loans? THANKS FOR YOUR COOPERATION