“A COMPARATIVE STUDY OF HOME

LOANS PROVIDED BY COOPERATIVE

BANK, PUNJAB NATIONAL BANK AND

STATE BANK OF INDIA”

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

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

1

CERTIFICATE

2

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 SUBMITTED BY

Manpreet kaur

MBA 3rd SEM

ROLL NO: 1174126

3

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.

Manpreet kaur

MBA 3rd SEM

ROLL NO: 1174126

4

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.

5

TABLE OF CONTENTS

S.NO TOPIC PAGE NO.

1 Certificate 2

2 Declaration 3

3 Acknowledgement 4

4 Preface 5

5 CHAPTER NO.1

INTRODUCTION TO

COOPERATIVE BANK

INTRODUCTION TO

HOME LOANS

8-48

6 CHAPTER NO.2

OBJECTIVES OF THE STUDY49-50

6

7 CHAPTER NO.3

RESEARCH METHODOLOGY51-52

8 CHAPTER NO.4

DATA ANALYSIS AND

INTERPRETATION53-64

9 CHAPTER NO.5

FINDINGS, LIMITATIONS

AND CONCLUSION

65-67

10 BIBLIOGRAPHY 68-69

7

CHAPTER NO.1

INTRODUCTION TO

COOPERATIVE BANK

8

INTRODUCTION TO COOPERATIVE BANKS

A co-operative bank is a financial entity which belongs to its members, who are at the same time

the owners and the customers of their bank. Co-operative banks are often created by persons

belonging to the same local or professional community or sharing a common interest. Co-

operative banks generally provide their members with a wide range of banking and financial

services (loans, deposits, banking accounts). A bank that holds deposits makes loans and

provides other financial services to cooperatives and member-owned organizations also known

as Banks for Cooperatives.

It’s a bank made for the economically weaker section of the society, those banks help them

getting loans in lower interest etc. you can say like for farmers or any small scale undertakings or

transactions.

While the co-operative banks in rural areas mainly finance agricultural based activities including

farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and

self-employment driven activities, the co-operative banks in urban areas mainly finance various

categories of people for self-employment, industries, small scale units, home finance, consumer

finance, personal finance, etc. Though registered under the Co-operative Societies Act of the

Respective States (where formed originally) the banking related activities of the co-operative

banks are also regulated by the Reserve Bank of India. They are governed by the Banking

Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

PRIMARY COOPERATIVE CREDIT SOCIETY

It is a village institution , which directly deals with the rural people .It encourages savings among

the agriculturalists , accept deposits from them, gives loan to the needy borrowers and collects

repayments. The funds of the society are derived from the share capital, deposits of members and

loan from CCBs. The borrowing powers of the members as well as of the society are fixed.

CATEGORIES

There are two main categories of the co-operative banks.

9

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

FUNCTIONS OF COOPERATIVE BANKS

Co-operative Banks are organized and managed on the principle of co-operation, self-

help, and mutual help. They work on the basis of “no profit no loss”. Profit maximization

is not their goal.

Co-operative bank do banking business mainly in the agriculture and rural sector.

However, UCBs, SCBs, and CCBs operate in semi urban, urban, and metropolitan areas

also.

The State Co-operative Banks (SCBs), Central Co- operative Banks (CCBs) and Urban

Co-operative Banks (UCBs) can normally extend housing loans up to Rs 1 lakh to an

individual. The scheduled UCBs, however, can lend up to Rs 3 lakh for housing

purposes. The UCBs can provide advances against shares and debentures.

10

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

STRUCTURE OF COOPERATIVE BANKING IN INDIA

The State Co-operative Bank (SCB) which is also known as the Apex Bank among the co-

operatives functions at the state level. At the district level, there is the District Central Co-

operative Bank (DCCB) for each district. At the base of the pyramid there are the Primary Credit

Societies or the Primary Agricultural Credit Societies (PACS) which cover small towns and

villages. Each higher level co-operative bank is a federation of those below having membership

and loan operations restricted to their affiliated units.

1. SCB- The State Co-operative Bank.

2. DCCB- The District Central Co-operative Bank.

3. PACS- The Primary Agricultural Credit Societies

PRIMARY AGRICULTURAL CREDIT SOCIETIES

At the base of the co-operative credit structure is the primary agricultural credit society (PACS)

occupying a predominant position. The organization of PACS dates back to 1904 when the first

co-operative credit society act was passed. These societies were started with the main objective

11

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.

DISTRICT CULTURAL COOPERATIVE BANK

There are now 351 DCCBs which land about Rs. 14000 crore annually. The Central Co-

operative Bank is usually located at the head quarters of the district. Central Co-operative banks

are generally of two types one is the membership type i.e. federating members known as

'Banking Union' and the other is the mixed membership type, consisting of both primary

members and individual having some financial status, influence or special business experience in

the field of co-operative banking. The main function of Central Co-operative Banks is to land

money to their affiliated primary societies.

STATE COOPERATIVE BANK

There is 29 STATE Co-operative Banks in the country. The SCBs have assumed a key position

in the co-operative credit structure because it is only through them that the RBI provides loans

and advances to agriculturist.

12

Table no.1

DCCBs of PSCB (District Central Cooperative Banks)

S.No. NAME OF THE CENTRAL COOPERATIVE BANK LOCATION PHONE NO.

1. AMRITSAR CENTRAL COOPERATIVE BANK AMRITSAR 0183-543351,543076

2. BHATINDA CENTRAL COOPERATIVE BANK BHATINDA 0164-212104

3. FARIDKOT CENTRAL COOPEATIVE BANK FARIDKOT 01639-50144,50225

4. FAZILKA CENTRAL COOPERATIVE BANK FAZILKA 01634-22245,25245

5. FEROZEPUR CENTRAL COOPERATIVE BANK FEROZEPUR 01632-46680,46082

6. GURDASPUR CENTRAL COOPERATIVE BANK GURDASPUR 01874-30355

7. HOSHIARPUR CENTRAL COOPERATIVE BANK HOSHIARPUR 01882-24100,20771

8. JALANDHAR CENTRAL COOPERATIVE BANK JALANDHAR 0181-224571,224298

9. KAPURTHALA CENTRAL COOPERATIVE BANK KAPURTHAL

A

01822-33469,33223

10. LUDHIANA CENTRAL COOPERATIVE BANK LUDHIANA 0161-411966,441281

11. MANSA CENTRAL COOPERATIVE BANK MANSA 01652-25381,25078

12. MOGA CENTRAL COOPERATIVE BANK MOGA 01636-23629,29520

13. MUKTSAR CENTRAL COOPERATIVE BANK MUKTSAR 01633-62078,64457

14. NAWANSHAR CENTRAL COOPERATIVE BANK NAWANSHAR 01823-23977,20034

15. PATIALA CENTRAL COOPERATIVE BANK PATIALA 0175-224758,217053

16. ROPAR CENTRAL COOPERATIVE BANK ROPAR 01881-20412,20481

17. SANGRUR CENTRAL COOPERATIVE BANK SANGRUR 01672-37114,34336

18. TARANTARAN CENTRAL COOPERATIVE BANK TARANTARA

N

01852-22339,23439

"HELPS YOU LIVE BETTER"

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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: ccb_ropar@yahoo.co.in

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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DIFFERENT TYPES OF DEPOSIT ACCOUNTS

Fig no.1

15

Saving Bank A/c

Saving Bank - No frill A/c

Term Deposit A/c

Recurring Deposit A/c

Current A/c

Locker A/c

Interest Rates on Deposit with effect from 19th February 2011

Table no.2

S.NoSchemes Period

fromPeriod up to

Rate of interest(Public)

Rate of interest(Sr. citizen)

1 Saving Bank

A/c

- - 4.00% 4.00%

2 Saving Bank

- No frill A/c

- - 4% 4%

3 Term

Deposit A/c

15 days 45 days 5% 5.50%

4 Term

Deposit A/c

91 Days 179 Days 7.00% 7.50%

5 Term

Deposit A/c

46 Days 90 Days 5.75% 6.25%

6 Term

Deposit A/c

180 <1 year 8.00% 8.50%

7 Term

Deposit A/c

1 year < 2 year 9.25% 9.75%

8 Term

Deposit A/c

2 years <3 years 9.00% 9.50%

16

9 Term

Deposit A/c

3 years and

above

above 8.50% 9.00%

10 Recurring

Deposit A/c

- - 4.00% 4.00%

11 Current A/c - - 0% 0%

12 Locker A/c - - 0 0

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INTRODUCTION TO HOME

LOANS

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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 one’s 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 day’s 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 bank’s 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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ADVANTAGES OF HOME LOANS

The 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 their needs.

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 days liberalize their laws regarding home loans. Some of

banks don’t 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 doors to step services are provided from enquiry stage to the final disbursement

takes place such services are beneficial for customers in present busy life. Banks like

ICICI bank 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 up to 15-20 years based on

the loan amount and the creditability of customers. This relieves the customers to repay

loan amount till a long period.

6. For accidental death insurance

Some banks provide free accidental death insurance with housing loan which is also

beneficial for the customers. These benefits or advantages of home loans are responsible

for making than so popular among customer that a person who doesn’t have their home

and want to buy, they do it with home loan. Home loans help such persons in making

their dream home.

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DISADVANTAGES OF HOME LOANS

The main disadvantages of home loans are high lightened as below

1. Delays in processing

Many times, there are huge delays in processing of providing home loans 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 to the customers.

3. High Cost

The public sector banks charge high processing cost for home loan’s 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 of

home 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 causes

problems to the customers.

These are limitations or disadvantages of home loans. But sometimes some banks charges high

installments to repay loan amount. Such also causes problem to customers. These limitations can

be removed by providing good services to the customers.

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DISBURSEMENT OF HOME LOANS

The every bank has its own procedure to disburse the loan amount among 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 are purchased and submit the

requisite legal documents. In the disbursement of home loans a clear title and full verification to

ensure that a person has full rights on his house. The 230A clearance of seller and or 371

clearances from the appropriate authority of income tax are also needed.

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.

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 throws light on acceptable relationship of a co-applicant for clubbing of

income.

INCOME CLUBBING OF CO-APPLICANTS

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 exist.

Brother-Brother-If they are currently staying together and intend to stay together

in the new property, then only, their income can be clubbed for above purposes.

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Brother-Sister-No clubbing-is possible.

Sister-Sister- No clubbing is possible.

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

GENERAL TERMS AND CONDITION

The following are the terms and conditions applicable to the basic home loan product

only. These are likely to change on the basis of the variations of the home loan product.

Typically, in general home loans, the following conditions are applicable.

1. The loan to value ratio (LTV) cannot exceed a particular percentage. This differs

from product to product and from one Housing Finance Institutional Bank

(HFI/B) to another. The components of the value of the property calculated here

are covered under cost of property.

2. The maximum tenure of the bank is nominally fixed by HFI/Bs. However,

HFls/Bs do provide for different tenures with different terms and conditions.

3. The installment that one pay is normally restricted to about-50-per cent of the

monthly-gross income of the candidate.

4. The total monthly outflow towards all the loans that have been availed of,

including the current loan is normally restricted to 50% of the gross monthly

income.

5. One will be eligible for a loan amount which is the lowest as per one's eligibility.

This is calculated as per the LTV norms, the HR, norms and the FOIR norms as

mentioned above.

6. Most HFls/Bs considers the profile before they judge the repayment capacity. The

judgment 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.

CHARGES APPLICABLE TO HOME

23

The different kinds of charges applicable to home loans are discussed below:

1. 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.

2. Administrative fees

This charge is again, normally, a percentage of the loan amount sanctioned. It is

collected by the HFI/B for the maintenance of customer's records, issuing interest

certificates, legal charges, technical charges, etc. though the tenure of the loan. It

is payable by 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/B to another.

3. Rate of interest

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 gives

an option to select either a fixed rate of interest or a variable rate of interest.

4. Legal Charges

Some HFIs/Bs mainly Public Sector Banks levy legal charges that they incur on

getting the property documents vetted by their panel of lawyers.

5. Technical Charges

These charges are also levied by certain Housing Finance Institutions/Banks

(HFIs/Bs) to meet their expenses on the technical site visits to the customer's

property. This ensures quality of construction and construction within the norms

as stipulated by the respective approval authority.

6. Stamp duty and registration charges

24

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.

25

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 certificate-

retainer 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 card-

Ration card-Employer's identity card-School leaving certificate-Birth certificate.

5. Proof of residence (Anyone of the following) - Ration card-Passport- PAN card-

Rent agreement, if the customer is staying currently on rent- Bank Pass book-

Allotment letter from the company if he/she is residing in company quarters.

26

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.

27

THE COOPERATIVE BANK HOME LOAN

The Co-operative Bank Home Loans, offer unbeatable benefits to ensure that you get the best

deal without any hassles. The largest home loan provider, Bank understands how special creating

a new home is for you, and our Home Loans help you lay the foundation for your dream home.

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.

29

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.

PROCESSING FEE & OTHER CHARGES

Processing fee and other charges @ 0.25% of loan amount shall be charged in the case of urban/

rural housing loan scheme.

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.

30

DIFFERENT TYPES OF LOANS SCHEMES OF COOPERATIVE BANK

Fig no. 2

31

Personal Loan Scheme

Non Farm Sector Loan Scheme

(NFS)

Consumer Durable Loan

Vehicle Loan Scheme

Second hand Vehicle Loan

Scheme

Urban Housing Scheme

Cash Credit Facility to Traders

Revolving Cash Credit to Farmers

(RCC)

Two Wheeler Loan to Farmers

Rural Housing Scheme

Mini Dairy Scheme

Commercial Dairy Development

Scheme

Cooperative Education Loan Scheme children of

poor farmers, Dalits, BC, etc.

Loan against Rental Income

Scheme

Dairy Loan Scheme to

purchase a Cow

Loan against Property

Loan scheme for Earnest Money

Mai Bhago Istri Shakti Scheme

Bhai Lalo Sehkari Kirt Shakti

Scheme

Education Loan

Credit for Setting up of Net House

Credit for Setting up of Agricultural

Service Centre

Interest Rates on Loans with effect from 7th July 2011

Table no.2

S.No Schemes Period from Period up to Rate of

interest(Public)

Rate of

interest(Sr.

citizen)

1 Personal Loan

Scheme

- 14% 14%

2 Non Farm

Sector Loan

Scheme (NFS)

-

Up to Rs.0.50

Lac 11.50%

Above Rs.0.50

Lac 12.00%

Up to Rs.0.50

Lac 11.50%

Above Rs.0.50

Lac 12.00%

3 Consumer

Durable Loan

- 14% 14%

4 Vehicle Loan

Scheme

- Up to Rs.3.00

Lac 13% Above

Rs.3.00 Lac

13.50%

11.50%

5 Second hand

Vehicle Loan

Scheme

- 13% 13%

6 Urban

Housing

Scheme

- 10% 10%

32

7 Cash Credit

Facility to

Traders

- 13% 13%

8 Revolving

Cash Credit to

Farmers

(RCC)

- 11% 11%

9 Two Wheeler

Loan to

Farmers

- 11.50% 11.50%

10 Rural Housing

Scheme

- 10% 10%

11 Mini Dairy

Scheme

- 10.50% 10.50%

12 Commercial

Dairy

Development

Scheme

- 10% 10%

13 Cooperative

Education

Loan Scheme

children of

poor farmers,

Dalits, BC,

etc.

- 7.25% 7.25%

33

14 Loan against

Rental Income

Scheme

- 14% 14%

15 Dairy Loan

Scheme to

purchase a

Cow

- 10.5% 10.50%

16 Loan against

Property

- 14% 14%

17 Loan scheme

for Earnest

Money

- As fixed by the

Bank.

..

18 Mai Bhago

Istri Shakti

Scheme

- PACS to

members

11.50%CCB to

PACS 9.50%

PACS to

members

19 Bhai Lalo

Sehkari Kirt

Shakti Scheme

- PACS to

members 11.50%

CCB to PACS

9.50%

PACS to

members

11.50% CCB to

PACS 9.50%

20 Education

Loan

- - 9% 9%

21

Credit for

Setting up of

Net House

- - 12% 12%

34

22 Credit for

Setting up of

Agricultural

Service Centre

- - 12% 12%

Rate of interest

35

Table no.3

TENURE Rate of Interest @ percent p.a.

For loans repayable in/up to Loan Amt. up to Rs.15 lakh Loan Amt. above Rs.15 lakh

Up to 5 years

floating

8.50 10.00

fixed 9.50 10.00

Above 5 years & up to 10 years

floating

10.50 12.50

fixed 12.50 13.00

36

PUNJAB NATIONAL BANK HOME LOANS

PNB reaches out to you with fast, friendly and most convenient home loans for:

Construction or purchase of house/flat.

Purchase of house/ flat on First Power of Attorney basis from the original allotted.

Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat.

FEATURES OF PNB HOME LOAN

Bank offers home loan under both Floating & Fixed category.

Housing finance facility is available for construction or purchase of new/old

house/flat/plot

Maximum loan repayment period for construction/purchase of house/flat is 25 years or

when borrowers attain the age of 65 years whichever is earlier.

Maximum moratorium period to start home loan EMIs is 18 months

Maximum amount for home loan available is 75% of the value in purchase of house/flat.

Maximum loan available up to Rs 20 lakh for purchase of land/plot

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.

INTEREST RATE

37

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 Above 5-10

yrs

Above 10-15

yrs

Above 15-20

yrs

Above 20-25

yrs

Up to 30 lakh 10.5 10.75 10.75 11 11

Above 30

lakh to < 75

lakh

11.25 11.5 11.5 11.75 11.75

75 lakh &

Above

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

Proof of Residence (any one): Driving license/Any utility bill/Govt. or authority bill

38

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.

2. Security

39

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.

40

Rate of interest charged by PNB

Table no.5

TENURE Rate of Interest @ percent p.a.

For loans repayable in/up to Loan Amt. up to Rs.20 lakh Loan Amt. above Rs.20

lakh

Up to 5 years

- floating

9.00 10.00

fixed 9.25 10.25

Above 5 years & up to 10

years floating

9.50 10.00

fixed 10.25 10.50

Above 10 years & up to 20

years- floating

9.75 10.25

fixed 10.75 11.00

Above 20 years & up to 25

years- floating

10.00 10.50

fixed 11.25 11.50

41

Figure no.3 Interest rates of Punjab national bank

42

Interest Rate11% Floating rate, >30 lakh to< 75 lakh for 20 yrs

Pre payment charges 2%

Balance Transfer Charges2%

Part-payment Charges Nil

Switching Charges(Fixed to Floating or vice-a-

versa)Nil

Loan to Value ratio 75%

Speed of Sanction 7 working days

Ease of documentationPre- Approved projects only. Less Documentation

Customer Service Good

Franking Charges 0.2%

STATE BANK OF INDIA HOME LOANS

"The 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

you

End to End service by Permanent employees of SBI who are

accountable to you.

 

Place SBI branch of your choice will service your loan account. You can

always meet our employees face to face.

 

Price

 

Complete transparency.

Interest charged on the daily reducing balance.

Prepayment charges No penalty for prepayments made, out of bonafide savings or

windfall gains for which evidence is produced.

Costs hidden in fine

print

 No hidden costs

 

Transparency Complete transparency. All the features of our product, including

interest rates, are in the public domain.

43

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

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.

44

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.

Current Floating Home Loan Interest Rates of SBI 

Table no.6

Bank name Up to 30 lakh From 30 to 75 lakh Above 75 lakh

SBI

10.50% 

(special scheme up to

30 Sept 12),

than 10.75%

10.75%

(special scheme up to

30 Sept 12),

than 11%

11% 

(special scheme up to

30 Sept 12) ,

than 11.25

LOAN AMOUNT

45

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%

Above Rs.2 lakh to Rs. 5 lakh 50%

Above Rs. 5 lakh 55%

PRE- CLOSURE PENALTY

No penalty if the loan is precolsed from own savings/windfall gains for which

documentary evidence is produced by the customer.

In case, such proof is not produced by the borrower, penalty @2% on the amount

prepaid in excess of normal EMI dues shall be levied if the loan is preclosed within 3

years from the date of commencement of repayment.

Maximum Repayment Period

For applicants up to 45 years of age: 20 years

For applicants over 45 years of age: 15 years 

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

Proof of business address in respect of businessmen/ industrialists

46

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

Minimum Income per annum Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)

Min Loan — Max Loan 5,00,000 — 1,00,00000 5,00,000 — 2,00,00000

Tenure 5years-20years 5years-20years

Experience required 2years 3years

Rate of interest of SBI home loan

47

Table no.8

TENURE Rate of Interest @ percent p.a.

For loans repayable in/up to Loan Amt. up to Rs.20

lakh

Loan Amt. above Rs.20

lakh

Up to 5 years

floating

10.50 11.00

fixed 12.75 13.25

Above 5 years & up to 10 years-

floating

10.75; 11.25

fixed 12.75 13.25

Above 10 years & up to 20 years-

floating

10.75 - 11.00 11.25 - 11.50

fixed 12.75 13.25

Above 20 years & up to 25 years-

floating

11.00 11.50

fixed 12.75 13.25

48

CHAPTER NO.2

OBJECTIVES OF THE STUDY

49

OBJECTIVE OF THE STUDY

There is no strongest foundation for your dream home, than a cheap loan. Home loans have

become those stronger foundations for people who want to own a home. The main objectives of

the study are as follows:-

To study the satisfaction level of consumers regarding home loan facilities provided

bank.

To study the procedures of home loan adopted by different banks

To study the difficulties faced by customers while availing personal loan.

To know about the purpose of taking loan.

To know about the preference of the customers.

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 witness’s 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

CHAPTER NO.3

RESEARCH METHODOLOGY

51

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.

DATA COLLECTION METHODS

The method which I used was secondary data for collecting relevant data necessary for this

project topic which was collected from various sources like magazines, journals and different

internet websites.

52

CHAPTER NO.4

DATA ANALYSIS AND

INTERPRETATION

53

1. From which of the following institution you have taken the loan?

9%

11%

20%

10%

50%

SBI

PNB

co-operative

OTHERS

 

Interpretation

This pie chart shows that 18% of respondents have taken loan from SBI, 22% from PNB, 40%

from The Cooperative, 20% from others.

2. Which bank is more secure according to you?

54

Bank No. of Respondents %age of Respondents

SBI 9 18%

PNB 11 22%

co-operative 20 40%

Others 10 20%

TOTAL 50 100%

Bank No. of respondents %age of respondents

PNB 11 22%

SBI 13 26%

Cooperative 18 36%

Others 8 16%

Total 50 100%

11%

13%

18%

8%

50%

PNB

SBI

Cooperative

Others

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.

55

3. What is the amount of loan availed by the customers?

Amount (RS) No. of respondents %age of Respondents

Below 2 Lac 18 36%

2 – 10 Lac 25 50%

10-15 Lac 5 10%

Above 15 Lac 2 4%

TOTAL 50 100%

36%

50%

10%

4%

Below 2 Lac

2 – 10 Lac

10-15 Lac

Above 15 Lac

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.

56

4. What is the purpose of the loan?

52%

12%

24%

10%

2%

Construction

Improvement

Purchase

Extension

Equity

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.

57

Purpose Respondents Percentage

Construction 26 52%

Improvement 6 12%

Purchase 12 24%

Extension 5 10%

Equity 1 2%

Total 50 100%

5. What is loan repayment period?

Duration No. of Respondents %age of Respondents

Up to 5 years 18 36%

Up to 10 years 16 32%

Up to 15 years 15 30%

Up to 20 years 9 18%

TOTAL 50 100%

31%

28%

26%

16%

Up to 5 years

Up to 10 years

Up to 15 years

Up to 20 years

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.

58

6. Who among your family mainly decides to take a loan?

Decider No. of Respondents %age of Respondents

Self 32 64%

Parents 10 20%

Friends/ Relatives 4 8%

Others 4 8%

TOTAL 50 100%

64%

20%

8%

8%

Self

Parents

Friends/ Relatives

Others

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.

59

7. From where you come to know about a particular bank or Institution?

Sources No. of Respondents %age of Respondents

Newspapers/ Magazines 18 36%

Internet/T.V. 12 24%

Exhibitions 9 18%

Builders/ Developers 11 22%

TOTAL 50 100%

36%

24%

18%

22%

Newspapers/ Magazines

Internet/T.V.

Exhibitions

Builders/ Developers

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.

60

8. How much are you satisfied from your service provider?

Decider No. of Respondents %age of Respondents

Very Satisfied 10 20%

Satisfied 30 60%

Indifferent 2 4%

Dissatisfied 6 12%

Very Dissatisfied 2 4%

TOTAL 50 100%

20%

60%

4%

12%

4%

Very Satisfied

Satisfied

Indifferent

Dissatisfied

Very Dissatisfied

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.

61

9. Have you ever faced any problem from your Home Loan institution?

Response No. of Respondents %age of Respondents

Yes 18 36%

No 32 64%

TOTAL 50 100%

36%

64%

Yes

No

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.

62

10. In future, if required, which of the following institution would you approach for taking

a Home Loan?

Name No. of Respondents %age of Respondents

PNB 10 20%

SBI 12 24%

Cooperative 15 30%

Others 13 26%

TOTAL 50 100%

20%

24%

30%

26%

PNB

SBI

Cooperative

Others

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.

11. What us the type of loan availed by customers?

63

Type of Loan No. of Respondents %age of respondents

Fixed Rate Home Loan 15 30%

Adjustable Rate Home Loan 35 70%

Total 50 100%

30%

70%

Fixed Rate Home LoanAdjustable Rate Home Loan

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.

64

CHAPTER NO.5

FINDINGS, LIMITATIONS AND

CONCLUSION

65

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.

66

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.

67

BIBLIOGRAPHY

68

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

69