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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
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CERTIFICATE
















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DECLARATION
I hereby declare that project report entitled A COMPARATI VE STUDY OF HOME LOANS
PROVI DED BY COOPERATI VE BANK, PUNJ AB NATI ONAL BANK AND STATE BANK
OF I NDI A 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 3
rd
SEM
ROLL NO: 1174126

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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 3
rd
SEM
ROLL NO: 1174126








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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.














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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 STUDY

49-50
7


7

CHAPTER NO.3
RESEARCH METHODOLOGY

51-52

8

CHAPTER NO.4
DATA ANALYSIS AND
INTERPRETATION



53-64


9

CHAPTER NO.5
FINDINGS, LIMITATIONS
AND CONCLUSION


65-67

10

BIBLIOGRAPHY

68-69







8








CHAPTER NO.1
INTRODUCTION TO
COOPERATIVE BANK









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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.
Its 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.
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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.



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FINANCE FUNCTION
1. Cooperative banks in India finance rural areas under:
Farming
Cattle
Milk
Personal finance
2. Cooperative banks in India finance urban areas under:
Self-employment
Industries
Small scale units
Home finance
Consumer finance
Personal finance

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
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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.












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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


Saving Bank A/c
Saving Bank - No frill A/c
Term Deposit A/c
Recurring Deposit A/c
Current A/c
Locker A/c
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Interest Rates on Deposit with effect from 19th February 2011
Table no.2


S.No

Schemes

Period
from

Period 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%
17


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 ones dream. Home is one of the things that everyone one
wants to own. Home is a shelter to person where he rests and feels comfortable. Many banks
provide home loans whether commercial banks or financial institutions to the people who want
to have a home. Many banks are providing home loans at cheapest rate to attract consumers
towards them. The more customer friendly attitude of these banks, currently offer to consumers
cheapest loan over homes.
OVERVIEW
Your Home is a place where you relax after coming back from your days tiring work, it is that
place where you can give time to your family & spend beautiful moments with them. To acquire
a home which can be christened your Own House is a life-time decision & has to be taken with
a lot of planning & requires huge finances. Your Dream Home is not very far away with a Home
Loans which will fulfill your Dream into a reality. We are working constantly to get you the best
Loans Deal & have brought a small guide which would answer some important questions related
to Home Loans & help you decide your loans deal.
DEFINITION
Home Loan is a Secured Loan offered against the security of a house/property which is funded
by the banks loan, the property could be a personal property or a commercial one. The Housing
Loan is a loan taken by a borrower from the bank issued against the property/security intended to
be bought on the part by the borrower giving the banker a conditional ownership over the
property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money
by selling the property.
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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 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 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 doesnt 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 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 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.

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CHARGES APPLICABLE TO HOME
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
25

HFIs that go in for a registered mortgage pass these charges on to the customer.
These are rather heavy in certain states depending on the laws laid down by the
state where one buys a property.
7. Personal Guarantee from Charges
Since the personal guarantee provided by the customer need to be stamped, these
charges are also recovered from the customer. They are charged to him by HFIs
who demand for Guarantees.
8. Cheque Bounce Charges
In case the cheques through which one makes a payment to HFls get dishonored,
some minimum charges are levied by the HFI. The same are recovered from the
customer.
9. Delayed payment charges
HFls/Bs charge delayed payment charges from the customer if he/she delays the
payment of installments beyond the due date.
10. Additional charges
These are levied as a percentage on the delayed payment charges by most HFls.
They are levied if one fails to pay the dues within the stipulated time after a delay
has taken place.
11. Incidental charge
This is payable in case the HFI/B sends a representative from their organization to
collect their outstanding dues. It is normally charged at a flat rate per visit. These
charges are levied by most HFls/Bs.
12. Prepayment Charges.
This is a penalty charged by HFls/Bs from when one makes either a part
prepayment or a full repayment of the loan. This charge is levied only on lump
sum payments and not on the EMls that one pays. This charge is levied on the
amount prepaid by one and not on the entire outstanding principal. These charges
are gradually being discount.



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CREDIT DOCUMENTATION
Given below is the exhaustive list of credit documents- that need to be submitted for a
general home loan product. The documents vary from one HFI/B to another based on
one's employer, qualifications experience etc. The general requirements are as follows:
1. Income Documents
For salaried slips for the last three months-appointments letter-salary 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.
27

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.

28

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.
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In case of purchase of plot +construction, the disbursement shall be in 3 installment
as follows :
1. For purchase of plot - 50%
2. Up to roof level 25%
3. After roof level -25%
Loan will be disbursed at one go for purchase of a built up house. However for construction on
pre-owned plot, the disbursement shall be in two installments
1
st
installment for after plinth level - 50%
2
nd
installment for construction of the building after roof level - 50%
In case of rural housing loan scheme
1. 1
st
installment at the time of starting constructing after plinth level 50%
2. 2
nd
installment after completion of roof level - 50%
3. 2
nd
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.

31

DIFFERENT TYPES OF LOANS SCHEMES OF COOPERATIVE BANK
Fig no. 2


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
32

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%
33


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%
34


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%
35


22

Credit for
Setting up of
Agricultural
Service Centre

-

-

12%

12%



















36

Rate of interest
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


37

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.
38

INTEREST RATE
Lending rate structure is that interest rate for home loan can be fixed or floating.
Floating rate varies with BPLR & Base Rate.
Currently the base rate is 10% and BPLR is 13.50% with effect from 05.05.2011
Currently loan is available as per floating rate
Table no.4

Loan Amount

Up to 5 yrs

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
39

Proof of Residence (any one): Driving license/Any utility bill/Govt. or authority bill
Proof of age (any one) : Passport/Voter's ID/PAN card/' Birth certificate/life insurance
policy or premium receipt Signature verification proof
Repayment track record of existing loans/Loan closure letter.

2. Self-Employed
Application form with recent photograph
Bank statement for last 6 months
Processing fee check
Proof of age (any one) : Passport/Voter's ID/PAN card/'Birth certificate/life insurance
policy or premium receipt
Proof of identity (any one): Passport Driving license/photo credit card/Employee
license/Voter's ID/PAN card
Proof of Residence (any one): Driving license/Any utility bill/Govt. or authority bill
P&L and balance Sheet for last 2 years certified/audited by CA
Qualification proof of the highest professional degree
Proof of existence
Income Tax return/Computation of total income/Auditor's Report Balance sheet/Profit
and loss account for last 2 years certified by CA
Repayment track record of existing loans/Loan closure letter
Proof of office address
Board Resolution in case of company
EXTENT OF LOAN
1. Individual
For construction/ purchase of house/ flat - 75% of the cost of construction of house
or purchase of house/ flat.
For carrying out repairs/ renovation/ additions/ alterations - 75% of the estimated
cost subject to maximum of Rs. 20lacs.
Loan up to Rs.20 Lakh for purchase of Land/Plot.
Loan is available maximum up to Rs.2 Lakh for furnishing.
40

2. Security
Mortgage of property for which finance is being given.
In case of purchase of house/ flat from housing board/ society where mortgage
cannot be created immediately, a tripartite agreement shall be executed amongst the
housing board/ society, borrower and the Bank.
In case of purchase of house/ flat on first power of attorney, additional security equal
to 125% of the loan amount by way of mortgage of some other property or pledge of
bank's FDR/ LIC policy/ Govt. Securities, NSCs, KVPs, IVPs, / PSU Bonds etc. has
to be provided.
Fixed Rate of Option is subject to Reset Clause of Five Years.
Extra rate of interest of 0.50% on Card Rates to be charged in respect of persons
already having one or more houses and availing housing loan for subsequent
house(s). Option for Fixed or Floating Rate of Interest exercised by the borrower will
not be allowed to be changed for a minimum period of 3 years, where after any
change would be at the discretion of the Sanctioning Authority.

UPFRONT FEE
0.90% of the loan amount + Service Tax & Education Cost

REPAYMENT
Loan is to be repaid in equated monthly installments within a period of 25 years or before the
borrower attains the age of 65 years.

DISBURSEMENT
For outright purchase of house/ flat, the loan amount will be paid in lump sum to the
vendor.
For house/ flat under construction, the loan amount will be disbursed in stages as per
progress of construction/ demand by selling agency.
41

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




42

Figure no.3 Interest rates of Punjab national bank

11% Floating rate, >30 lakh to< 75 lakh
for 20 yrs
Interest Rate
2%
Pre payment charges
2%
Balance Transfer Charges

Nil
Part-payment Charges
Nil
Switching Charges
(Fixed to Floating or vice-a-
versa)
75%
Loan to Value ratio
7 working days
Speed of Sanction
Pre- Approved projects only.
Less Documentation
Ease of documentation
Good
Customer Service
0.2%
Franking Charges
43

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
44

interest rates, are in the public domain.
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
45

Provision to finance cost of furnishing and consumer durables as part of project cost
Repayment permitted up to 70 years of age.
Free personal accident insurance cover up to Rs.40 Lac.
Optional Group Insurance from SBI Life at concessional premium (Upfront premium
financed as part of project cost)
Plus schemes which offer attractive packages with concessional interest rates to Govt.
Employees, Teachers, Employees in Public Sector Oil Companies.
Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban
Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat.
ELIGIBILTY
Minimum age 18 years as on the date of sanction
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which
the loan should be fully repaid.
Availability of sufficient, regular and continuous source of income for servicing the loan
repayment.

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



46

LOAN AMOUNT

40 to 60 times of NMI, depending on repayment capacity as % of NMI as under

Net Annual Income

EMI/NMI Ratio

Up to Rs.2 lakh

40%

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
47

Proof of business address in respect of businessmen/ industrialists
Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate,
Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report
from our empanelled lawyer)
Copy of approved plan and approval from the Local Body
Statement of Bank Account/ Pass Book for last 6 months
Table no.7

Topic

Salaried

Self employed

Age

21years to 60years

21years to 70years

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









48

Rate of interest of SBI home loan
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
49






CHAPTER NO.2
OBJECTIVES OF THE STUDY
50

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 witnesss phenomenal growth from last 5 years.
There are greater numbers of borrowers of home loans. So by this study I can find out
satisfaction level of customers and problems faced by them in obtaining home loans.
SCOPE OF STUDY
Based on the findings and recommendations of the study the present study will be confined to
three commercial Banks in Morinda city namely PNB, State Bank of India, the Co-operative
Bank. It includes public sector banks.



51





CHAPTER NO.3
RESEARCH METHODOLOGY

52

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.

53





CHAPTER NO.4
DATA ANALYSIS AND
INTERPRETATION










54

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










Interpretation
This pie chart shows that 18% of respondents have taken loan from SBI, 22% from PNB, 40%
from The Cooperative, 20% from others.
9%
11%
20%
10%
50%
SBI
PNB
co-operative
OTHERS
Bank No. of Respondents %age of Respondents
SBI 9 18%
PNB 11 22%
co-operative 20 40%
Others 10 20%
TOTAL 50 100%
55

2. Which bank is more secure according to you?
Bank No. of respondents %age of respondents
PNB 11 22%
SBI 13 26%
Cooperative 18 36%
Others 8 16%
Total 50 100%




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.

11%
13%
18%
8%
50%
PNB
SBI
Cooperative
Others
56

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%




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.

36%
50%
10%
4%
Below 2 Lac
2 10 Lac
10-15 Lac
Above 15 Lac
57

4. What is the purpose of the loan?











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.

52%
12%
24%
10%
2%
Construction
Improvement
Purchase
Extension
Equity
Purpose Respondents Percentage
Construction 26 52%
Improvement 6 12%
Purchase 12 24%
Extension 5 10%
Equity 1 2%
Total 50 100%
58

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%


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.


31%
28%
26%
15%
Up to 5 years
Up to 10 years
Up to 15 years
Up to 20 years
59

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%


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.


64%
20%
8%
8%
Self
Parents
Friends/ Relatives
Others
60

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%


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.


36%
24%
18%
22%
Newspapers/ Magazines
Internet/T.V.
Exhibitions
Builders/ Developers
61

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%


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.

20%
60%
4%
12%
4%
Very Satisfied
Satisfied
Indifferent
Dissatisfied
Very Dissatisfied
62

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%


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.


36%
64%
Yes
No
63

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%


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.


20%
24%
30%
26%
PNB
SBI
Cooperative
Others
64

11. What us the type of loan availed by customers?
Type of Loan No. of Respondents %age of respondents
Fixed Rate Home Loan 15 30%
Adjustable Rate Home Loan 35 70%
Total
50 100%


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.

30%
70%
Fixed Rate Home Loan
Adjustable Rate Home Loan
65




CHAPTER NO.5
FINDINGS, LIMITATIONS AND
CONCLUSION

66

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.









67

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.


68






BIBLIOGRAPHY





69

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