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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli

Branch Yavatmal

CHAPTER 1

INTRODUCTION
1.1) INTRODUCTION: A Co-operative bank, as its name indicates is an institution consisting of a
number of individuals who join together to pool their surplus savings for the purpose
of eliminating the profits of the bankers or money lenders with a view to distributing
the same amongst the depositors and borrowers.
The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as
a co-operative registered as a co-operative bank in terms of the Act whose members
1. Are of similar occupation or profession or who are employed by a common
employer or who are employed within the same business district; or
2. Have common membership in an association or organization, including a
business, religious, social, co-operative, labor or educational group; or
3. Have common membership in an association or organization, including a
business, religious, social, co-operative, labor or educational group; or
4. Reside within the same defined community or geographical area.
Co-operating Banking: Co-operative bank, in a nutshell, provides financial assistance to the people
with small means to protect them from the debt trap of the money lenders. It is a part
of vast and powerful structure of co-operative institutions which are engaged in tasks
College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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of production, processing, marketing, distribution, servicing and banking in India. 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. These banks generally provide their members with a wide range of
banking and financial services (loans, deposits, banking accounts). Co-operative
banks differ from stockholder banks by their organization, their goals, their Values
and their governance.
The Co-operative Banking System in India is characterized by a relatively
comprehensive network to the grass root level. This sector mainly focuses on the local
population and micro- banking among middle and low income strata of the society.
These banks operate mainly for the benefit of rural areas, particularly the agricultural
sector.

1.2) ORIGIN OF CO-OPERATIVE BANKING: The beginning co-operative banking in India dates back to about 1904, when
official efforts were made to create a new type of institution based on principles of cooperative organization & management, which were considered to be suitable for
solving the problems peculiar to Indian conditions. The philosophy of equality, equity
and self help gave way to the thoughts of self responsibility and self administration
which resulted in giving birth of co-operative. The origin on co-operative movement
was one such event-arising out of a situation of crisis, exploitation and sufferings.
Co-operative banks in India came into existence with the enactment of the
Agricultural Credit Co-operative Societies Act in 1903. Co-operative bank form an
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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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integral part of banking system in India. Under the act of 1904, a number of cooperative credit societies were started. Owing to the increasing demand of cooperative credit, anew act was passed in 1912, which was provided for establishment
of co-operative central banks by a union of primary credit societies and individuals.
Co-operative Banks in India are registered under the Co-operative Societies
Act. The cooperative bank is also regulated by the RBI. They are governed by the
Banking Regulations Act 1949 and Banking Laws (Cooperative Societies) Act, 1965.

1.3) IMPORTANCE OF CO-OPERATIVE BANKING: Co-operative bank forms an integral part of banking system in India. This
bank operates mainly for the benefit of rural area, particularly the agricultural sector.
Co-operative bank mobilize deposits and supply agricultural and rural credit with the
wider outreach. They are the main source for the institutional credit to farmers. They
are chiefly responsible for breaking the monopoly of moneylenders in providing
credit to agriculturists.
Co-operative bank has also been an important instrument for various
development schemes, particularly subsidy-based programs for the poor. Co-operative
banks operate for non-agricultural sector also but their role is small. Though much
smaller as compared to scheduled commercial banks, co-operative banks constitute an
important segment of the Indian banking system. They have extensive branch network
and reach out to people in remote areas. They have traditionally played an important
role in creating banking habits among the lower and middle income groups and in
strengthening the rural credit delivery system.

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
Types of Co-operative Banks

Multistate Consultant Private Limited: Multistate Consultant Private Limited provides A-Z services regarding Multistate
Cooperative Society, Mutual Benefit (Nidhi) Company, Producer Company, Section
25 Company, NBFC etc starting from its registration, Advisory services regarding
daily activities, finalization of accounts, Submission of annual return and so on.
Multistate Co-operative Society: A multi-state cooperative society may be registered if its main object is not confined
to one State and serving the interests of members in more than one State, to facilitate
the voluntary formation and democratic functioning of Co-Operatives as people's
College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
institutions based on self-help and mutual aid and to enable them to promote their
economic and social betterment and to provide functional autonomy and for matters
connected therewith or incidental thereto.
A multi-state Co-operative Society is basically a society that is registered or
deemed to be registered under the Multi-State Cooperative Societies Act, 2002 and
includes a National Cooperative Society or a Federal Cooperative. Ministry of
Agriculture is will issue the registration certificate.
Multi State Co-operative Societies are of several types:

Multistate Credit Co-operative Society

Multistate Housing Co-operative Society

Multistate Farming Co-operative Society

Multistate Dairy Firm Multi State Co-operative Society

Multistate Solar Credit Co-operative Society

Multistate Multi State Multi Purpose Co-operative Society

Multistate Transport Co-operative Society and many more

Producer Company: The Companies (Amendment) Act 2002 vides notification no. S.O. 135 (E) inserted
part IX A of the Companies Act, 1956 (hereinafter referred to as the Act ) and

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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introduced the concept of Producer Company. In the year 2002 an expert committee
led by noted economist Y.K Alagh framed legislation for incorporation of a producer
company, and conversion of inter- state cooperative society into a producer company
and its reconversion into cooperative society. It aims at upliftment of rural producers
for following reasons:

Rural producers have been at a potential disadvantage given their limited


assets, resources, educational and access to advanced technology.

In Indian context the farmers disposes of his produce in unprocessed form


there is no plough back of surpluses from value addition to the farm.

Agribusiness enterprises are therefore increasingly looking for direct tie up


with the farmers to source the agricultural produce required by them.

Therefore companies (Amendment) act 2002 part IX-A is a step in this direction.
The companies shall be termed as limited and the liability of the members will be
limited to the amount, if any, unpaid on the shares. On registration, the producer
company shall become as if it is a private limited company with the significant
difference that a minimum of two persons cannot get them registered, the provision
relating to a minimum paid-up capital of Rs. 1 lakh will not apply and the maximum
number

of

members

can

also

exceed

50.

Members' equity cannot be publicly traded but be only transferred. As such, "producer
companies would not be vulnerable to takeover by other companies or by MNCs.''
Formation of Producer Company: -

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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Any ten or more individuals, each of them being a producer, that is, any
person engaged in any activity connected with primary produce, any two or more
producer institutions, that is, producer companies or any other institution having
only producers or producer companies as its members or a combination of ten or
more individuals and producer institutions, can get a producer company
incorporated under the Act.

Every producer company is to have at least five and not more than 15
directors.

A full time chief executive, by whatever name called, is to be appointed by the


board.

Following enclosures and documents are required to be submitted with along the
application:

A copy of the special resolution passed with2/3 majority of the member.

A statement showing names, addresses and occupation of the Directors and the
Chief Executive.

A list of the members.

A statement indicating that the Inter-State Cooperative Society is any one or


more of the objects specified in section 581B.

A declaration by two or more Directors certifying that the particulars given as


per para (1) to (4) above are correct.

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

Guidance on Software Development procedure,

Regular updating regarding multistate societys laws/ circulars / notifications


to our clients.

Peoples cooperative bank, Hingoli is also one of the parts of Multistate Consultant
Private Limited and this study of project mainly focuses on the leading functions of
the banks with special reference to Peoples cooperative bank, Hingoli.
The report states different kinds of loans and the survey that shows the average
number of loan proposal approved and disapproved by the bank.
The study gives an insight into procedures followed by the bank as per the norms of
Reserve Bank of India and Co-operative Society Act 1960.

1.4) HOUSING FINANCE:


Housing finance is a broad topic, the concept of which can vary across
continents, regions and countries, particularly in terms of the areas it covers. For
example, what is understood by the term housing finance in a developed country
may be very different to what is understood by the term in a developing country.
The International Union for Housing Finance, as a multinational networking
organization, has no official position on what the best definition of housing finance is.
However, the selection of quotes below is offered as a snapshot of what housing
finance as a topic covers

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
Housing finance brings together complex and multi-sector issues that are
driven by constantly changing local features, such as a countrys legal environment or
culture, economic makeup, regulatory environment, or political system
In addition, the concept of housing finance and housing finance systems has
been evolving over time. Looking at definitions from the mid-1980s, we see that
housing finance was defined primarily in terms of residential mortgage finance:
The purpose of a housing finance system is to provide the funds which homebuyers need to purchase their homes. This is a simple objective, and the number of
ways in which it can be achieved is limited. Notwithstanding this basic simplicity, in a
number of countries, largely as a result of government action, very complicated
housing finance systems have been developed. However, the essential feature of any
system, that is, the ability to channel the funds of investors to those purchasing their
homes, must remain.
However, in more recent years, a number of other much wider definitions have
appeared:
Put simply, housing finance is what allows for the production and
consumption of housing. It refers to the money we use to build and maintain the
nations housing stock. But it also refers to the money we need to pay for it, in the
form of rents, mortgage loans and repayments.
Or
There is recognition of other relevant forms of housing finance [apart from
residential mortgage finance] such as developer finance, rental finance, or
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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
microfinance applied to housing. Developer finance is often in the form of
unregulated advance payments by buyers, and developers sometimes provide longterm finance to buyers through installments sales when mortgages markets are not
accessible. Microfinance for housing is typically used for home improvement or
progressive housing purposes. Loans are typically granted without pledging
properties. Although the overall impact of microfinance in housing remains limited,
this activity can represent an important source of funding for those in the informal
sector.

1.5) HOUSING LENDING MODEL:


Over the ages, shelter has remained as one of the most basic and important
needs of human beings. Peoples housing needs have increased manifold in recent
times as the population grows, the middle class expands and younger generations
choose to move into nuclear family units, or move near the increasingly popular
regional work hubs. However, with high costs of construction materials, high capital
costs and increasing complexity of the legal and technical paperwork needed,
accessibility and affordability of house ownership continues to remain a challenge.
Housing finance acts as a bridge to provide financing and open up the housing
market to aspiring house owners. In recent times, specialist housing finance
companies (HFCs) targeting the low-income/financially-excluded household segment
have emerged as a key player to meet the demands of the newly bankable population
who do not have credit history in conventional terms, and are often not served by
banks and mainstream HFCs. The lending model and operational processes of these

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
specialist HFCs- which we will refer to as Affordable Housing Finance Companies
(AHFCs) are the subject of this post.
Housing Finance Sector Review: The Environment for AHFCs and HFCs
There are several players in the housing finance space, such as Scheduled
Commercial Banks (SCBs), Housing Finance Companies (HFCs), Affordable
Housing Finance Companies (AHFCs), Financial Institutions (FIs), Regional Rural
Banks (RRBs), Scheduled Cooperative Banks, Agriculture and Rural Development
Banks, State Level Apex Cooperative Housing Society and development
organizations like MFIs or SHGs. However the most significant contribution comes
from SCBs and HFCs (including AHFCs).
As of 28 November 2013, there are 18 HFCs which have been granted
Certificate of Registration2 (CoR) with permission to accept public deposits including
6 HFCs that are required to obtain prior written permission from National Housing
Bank (NHB) before accepting any public deposits. 39 HFCs were granted CoR
without permission to accept public deposits. 5 applications for grant of CoR are still
under process.
HFCs typically offer three products housing loan, home improvement loan
and Loan against Property. As of March 31, 2012, the percentage of housing loan to
total loans offered by HFCs was about 74%3. The general product bifurcation of
disbursement for housing in FY 2011-12 by HFCs is given below which clearly
depicts the high demand for loans below 25 lakhs.

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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To enable continuous and uninterrupted disbursements of loans to eligible


borrowers, AHFCs must have continuous, diverse, and reliable sources of funding.
Currently, these sources are limited to raising equity from private sources, bank funds,
private placement of debt, and for a handful of AHFCs (such as Gruh Finance, Saral
Home Finance), public deposits with or without prior written permission. For the
larger universe of AHFCs, however, the lack of access to capital markets and public
deposits compels AHFCs to rely heavily on bank funding, in the form of both longand short-term loans. This mixed composition of liabilities, when combined with the
largely long-term nature of assets the housing loan portfolio to the tune of 86.7%
of assets having a tenure above 7 years 4, requires AHFCs to manage the risk of assetliability duration mismatches including risk of refinancing short-term debt at higher
interest rates. Hence, Asset Liability Management (ALM) becomes a key challenge to
HFCs that are highly leveraged and rely predominantly on bank funding.
The regulatory authority and apex financial institution for HFCs, the NHB
provides refinance assistance to eligible HFCs against their existing housing loans.
Such a refinance scheme would be very beneficial for AHFCs and would help them in
managing their ALM mismatches. NHB carried out refinancing to the tune of Rs
17,500 crore5 in the year ended June 2013 and expects to disburse Rs 20,000 crore
under the refinance window. Funding of HFCs as on Mar 31, 2012 is shown in the
below table:
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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

In Part 2 of this post we write about the key features of the lending model,
divergence in processes adopted by some AHFCs and the road ahead.

1.6) PURPOSE OF HOUSING FINANCE:


Home Buying
For home buyers, the primary purpose of a loan is to facilitate the purchase of
a house or to finance the construction of one. A home is the biggest investment most
people will ever make, and few private individuals could afford one without a
mortgage. Mortgage loans give borrowers with good credit histories access to lower
interest rates and make it affordable to own a home within the two or three decades
that the loan takes to pay off.
Home Improvement
Home loans can also fund home improvements, which are very important for
homeowners. Home improvement loans are usually a wise investment because they
add value to a home, some or all of which will be realized when it comes time to sell.
Home improvement loans can also save borrowers money by allowing them to pay for

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
necessary repairs as needed, rather than waiting to save up money and finding that the
damage is worse and the repairs more expensive that they would have been earlier.
Home Equity
Second mortgages, which include home equity loans and home equity lines of
credit, and cash-out refinance loans give homeowners access to money for home
improvements, medical bills, college tuition or other expenses, based on the equity
built up by paying off the original mortgage. All of these loan types use home equity-the amount the borrower has already paid against the initial mortgage--to give the
homeowner access to cash. A home equity line of credit is a loan that the borrower
can dip into as needed, making charges periodically. A home equity loan and a cashout refinance loan both give the homeowner an up-front lump sum payment. While a
home equity loan exists as a second mortgage alongside the first mortgage, a cash-out
refinance replaces the original mortgage and may also give the borrower access to a
new, lower interest rate.
Lenders
For lenders that provide home loans, including mortgage banks and most large
commercial banks, home loans serve as a means of earning a profit. Lenders charge
interest based on a borrower's degree of risk. In addition, some lenders require certain
borrowers who represent a higher risk to purchase mortgage insurance, which protects
the lender in case the borrower is unable to pay back the loan. Lenders use home loan
interest to pay stock dividends, to pay interest to depositors and to fund other
corporate activities.

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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The Economy
Home loans have an important purpose in the global economy. Besides
helping to pay for the employment of bank staff, home builders and real estate agents,
home loans also fuel mortgage-backed securities. These are investments that earn
money based on homeowners paying interest to lenders. Investment banks and other
firms use mortgage-backed securities to distribute investments across the economy.

1.7) FOUNDER OF THE BANK:


Sahakarratna Shri Omprakashji Deora Life Profile

Name:-- Omprakash Devkinandanji Deora


Sunil New Mondha, Hingoli

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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Dist. Hingoli431513
Phone (House) (02456) 220825,220225
Mobile 9422875781

Date Of Birth: -- 08 March 1943

Education: -- Graduate (Sahitya Sudhakar)


Award: --

1) Sahkarratna
2) Dharmalankar
3) Agraratna
4) Yagnik

Business & Other:-1) Agriculture & Social Activities, Industrialist Participate In Agriculture, Social &
Religious Program
2) Last 30 Years Working In Co Operative Banking Sector
Founder Chairman:-1) Apex Co Op Bank Of Urban Banks Of Maharashtra & Goa Ltd, Mumbai
2) Peoples Co Op Bank Ltd Hingoli (One of the Multistate Bank in Marathwada
region)

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
3) Marathwada Urban Co Op Bank Association Ltd. Aurangabad
4) Parbhani/ Hingoli Dist. Urban Co Op Banks Association Ltd. Parbhani
5) Shri Shankarrao Chavan P V C Pipe Utpadak Sahakari Santha Maryadit. Hingoli
Ex Chairman:-1) Maharashtra State Cooperative Banks Association Ltd Mumbai
2) Maharashtra State Urban Co Op Bank Federation Ltd Mumbai
3) Bhu Vikas Bank Maryadit Dist . Parbhani
Chairman:-1) Peoples Co Op Bank Ltd Hingoli (One Of The Multi State Bank In Marathwada
Region)
2) Marathwada Nagari Sahkari Banks Co Op Bank Association Ltd Aurangabad
3) Parbhani/Hingoli Dist Nagari Sahkari Banks Association Ltd
4) Gandhi Sewa Trust Hingoli, Sewabhawi Santha
Vice Chairman:-Ex Vice Chairman National Federation of Urban Co Op Bank Credit Society Ltd,
New Delhi
Director:-1) Maharashtra State Urban Co Op Bank Federation Ltd Mumbai
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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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2) National Federation of Co Op Bank & Credit Society Ltd New Delhi
Ex Member:-1) All India Sanskrit Committee, Varanasi (Uttarpradesh)
2) Hindi Sahitya Adviser Committee (Home Ministry) New Delhi
3) R B I Mumbai Adviser Committee
4) Ward Member Hingoli (1965-1995)
5) Shantata Committee Hingoli
6) Sales Tax Advisor Committee, Maharashtra
7) D P D C Parbhani & Hingoli District Member
8) National Film & Fine Art Cooperative Society New Delhi
9) Bhuvikas Bank Member
Foreign Tour For Studies:-Tour for Cooperative Revolution Studies Russia, Japan, Italy, Rome, West
Germany & Zekoslovakiya
Political Achievement:-1) Year1978 to 1995 Marathwada Regional Congress Sarchitnis

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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2) Chairman, Maharashtra State Congress Committee (Cooperative Revolution,
Mumbai)
3) Chairman, Maharashtra State Congress Committee (Economic Department,
Mumbai)
Social Activity:1) Inauguration Statues At Hingoli Of Lord Shri Maharaja Agrasenji & Late Smt
Indira Gandhi ( Ex Prime Minister)
2) Construction Temple for Society
3) Construction Religious School At Haridwar, Mathura, Allahabad, Trambakeshwar
& Varanasi
4) Make at Hingoli City Cement Road, Green Belt, Toilet, Cold Water Tank For Use
Hingoli Citizen
5) 500 Acre Land Provide For Development Industries Zone From Maharashtra State
Industrial Sector At Hingoli
6) Loans Available By Bhuvikas Bank For Formers
7) At Adgaon Tq Hingoli Atleast 350 Formers Get Together & 3500 Acre Land
Getting
Social & Education Activity:-At Hingoli Established Gandhi Seva Trust

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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1) Established Shri Shankarrao Chavan Urdu Primary & High School
2) Matoshri Gangadevi Deoda Niwasi Andh Vidyalaya
3) Adult Literacy Programs
4) Established Shri Jai Bajrangbali Vyayam School
5) Provide Land To Nagar Parishad Hingoli Employee For Construction Building So
That Area Called Deora Nagar
Future Plan:-1) For Bank Employees Residence Society Develop At Hingoli
2) Co Op Multi City Hospital

1.8) PRODUCTS:
Current Account

Proprietorship

Partnership

Limited Company

Society Current

Savings Account

Personal Savings

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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HUF

Society Savings

Fixed Deposits

Fixed Deposits

Senior Citizen

Society Fixed

Re-Investment Deposits

Re-Investment Deposits

Senior Citizen Re-Investment Deposits

Recurring Deposits
Loan Account

Cash Credit Loan

Secured Cash Credit Loan

Term Loan

Housing Loan

Salary Loan

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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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Vehicle Loan

Warehouse Loan

1.9) BANKING CHANNELS:

Any Branch Banking

Internet Banking

ATM Banking

Mobile Branch Banking

SMS Banking

Tele Banking

Mobile Banking

IFSC Codes

1.10) BRANCHES:
Head office- People's Co-op.Bank Ltd.,Hingoli (Multi State Bank)
Head Office, Main Road, Hingoli
Tq.Dist.Hingoli-4311513
Ph:(02456) 220748,220749,220518
Fax: 220481
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A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


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Email: hng_pcbhnl@rediffmail.com

Branches
Maharashtra

Andhra Pradesh

Hingoli branch (Main branch)


Akhada Balapur Branch
Parbhani Branch
Sengaon Branch
JawalaBajar Branch
Jintur Branch
Deulgaon Raja Branch
Mantha Branch
Jalna Branch
Nanded Branch
Akola Branch
Aurangabad Branch
Pandharkawda Branch
Yawalmal Branch
Dharmabad Branch
Selu Branch
Bori Branch
Degloor Branch
Hadgaon Branch
Bhaisa Branch
Nagpur Branch
Wardha Branch
Chopada Branch
Pune Branch
Bhokar Branch

Adilabad Branch

CHAPTER 2
REVIEW OF LITERATURE
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LITERATURE REVIEW:
1. Journal Name: Housing Finance in India: Development, Growth and Policy
implications
Volume number 1 (1)
Edition- 2 (2008)
Page number- 171
Author name- Dr. Ashwani Kumar Bhalla, Dr. Pushpinder Singh Gill, Dr. Parvinder
Arora
Abstract
Housing Finance is a high flying sector these days and is tipped to grow at a
phenomenal 36% P.a. Banks and financial institutions have brought sea changes in
their strategies and there is shift from sellers market to buyers market. Liberal tax
incentives by the govt. low and competitive interest rates for housing finance has
made this sector as red hot sector. Keeping in view the importance of housing finance
in solving the housing problem this paper analyse the performance of this sector while
identifying the its problems and challenges. A look has also been given to the future
prospects of this sector.
2. Journal Name: Markets and housing finance
Volume number 18
Edition- 3
Page number- 257-274
Author name- Veronica Cacdac Warnock, Francis E. Warnock

AbstractWe examine the extent to which markets enable the provision of housing
finance across a wide range of countries. Housing is a major purchase requiring longCollege of Management & Computer science, Yavatmal

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term financing, and the factors that are associated with well-functioning housing
finance systems are those that enable the provision of long-term finance. Across all
countries, controlling for country size, we find that countries with stronger legal rights
for borrowers and lenders (through collateral and bankruptcy laws), deeper credit
information systems, and a more stable macroeconomic environment have deeper
housing finance systems. These same factors also help explain the variation in
housing finance across emerging market economies. Across developed countries,
which tend to have low macroeconomic volatility and relatively extensive credit
information systems, variation in the strength of legal rights helps explain the extent
of housing finance. We also examine another potential factorthe existence of
sizeable government securities marketsthat might enable the development of
emerging markets housing finance systems, but we find no evidence supporting that
3. Journal Name: Housing microfinance in post-conflict Angola: overcoming
socioeconomic exclusion through land tenure and access to credit
Volume number 3
Edition- 1
Page number- 9-15
Author name- Cain, A
AbstractDevelopment Workshop, human settlements NGO has been working in Angola
since 1981 and is developing approaches to post-conflict shelter challenges. Two
linked programmes of the NGO are discussed in this paper: the KixiCasa housing
microfinance model, aiming to address the issue of economic exclusion through the
provision of microcredit and together with the Ministry of Urbanism and
Environment, the land management strategy, using upgradeable occupancy rights and
land pooling to facilitate the regularization and securing of tenure rights for the poor.

CHAPTER 3
RESEARCH METHODOLOGY
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Research in common parlance refers to search for knowledge. Research is an
academic activity and as such it is used in a technical sense. According to Clifford
Woody, research comprises defining and redefining problems, formulating hypothesis
or suggesting solutions, collecting, organizing and evaluating data, making deductions
and research conclusions to determine whether they fit the formulating hypothesis.

3.1) OBJECTIVES OF THE STUDY:


The study specifically aims at:
1. Studying the importance of housing, demand for housing and house finance in
India.
2. Evaluation of the role of financing of houses in Yavatmal.
3. To identify the popular schemes of Peoples cooperative bank, Hingoli.
4. To analyze the trends in housing finance.
5. To ascertain the problems of borrowers for availing housing loans.
6. To evaluate the impact of tax considerations on housing finance.
7. Measuring the service quality being provided by Peoples cooperative bank,
Hingoli.

3.2) RESEARCH DESIGN:


A Questionnaire is used to do the research
Exploratory Research design
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Focus Group
Primary data analysis

3.3) DATA COLLECTION:


Data means information required in the research. There are two types of data
sources, which have been helpful to carry out the research these, are as follows:
Primary data
Primary data are those, which are collected a fresh and for the first time. Primary
data was collected through questionnaires & Interview schedule.
Secondary data
Secondary data are those, which have already been collected by publication of
Governments, Periodicals of organization, newspaper, books, & internet etc.
Questionnaire
The questionnaire is one of the many ways through which data can be collected.
Questionnaire is widely used by researcher to collect information on related study.
Questionnaire is a method of getting data about respondent by asking them than by
observing and sampling their behavior. Questionnaire should be standardized, its
anonymity can be assured and questionnaire should be design to meet the simple and
native language to allow the use of large sample.
Sampling Universe

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
The first step in devolving any sample design is to clearly define the set of
objects, technically called the universe.
Sample universe includes investors of Peoples cooperative bank, Hingoli.
Sample Technique
Sampling technique used for selection of sample non-probability,
Convenience sampling technique.
A convenience sample is that where the sample is selected, in part or only a
limited attempt, to ensure that this sample is an accurate representation of some larger
group of population. The classic example of convenience sample is standing at
shopping mall and selecting shoppers as they walk by to fill out a survey. A
convenience sample chooses the individuals that are easiest to reach or sampling that
is done easy. Hence, convenience sampling was used for the research.
Sample Size
This refers to the number of item to be selected from the universe to constitute a
sample. The sample size is 50. These users are the families.

3.4) LIMITATION:
The limitation of this study is that sometimes the male or female respondents
may not give the proper and correct information regarding the Training and
Development.
College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

1) The study was limited to Peoples co-operative bank, Hingoli, only.


2) Due to limited time & money, it was not peruse to come whole entire, hence
the sample size was 50 respondents.
3) The study was limited to Yavatmal city.

CHAPTER 4

DATA ANALYSIS & INTERPRETATION

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
The data so collected is scrutinized, tabulated and analyzed by the help of
some statistical tools and techniques and finally used for the study purpose. Following
are the major conclusions are drawn by the researchers.
Table No. 4.1 RESPONDENTS HAVING OWN HOME
Opinion

Number of

Sr. No

Percentage

1
2

Yes
No
TOTAL

respondents
70
30

70
30

100

100

Sources: Primary Data


Graph no. 4.1 RESPONDENTS HAVING OWN HOME

Number of respondents
Yes

30%

No
70%

Interpretation
From above data it can be concluded that, 70% of the respondents are having
their own home and 30% are not having their own home they living in the rent
houses.

Table No. 4.2 AWARENESS ABOUT THE HOME LOAN PRODUCT OF


FOLLOWING BANK
College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
Bank

Number of respondents

Sr. No

Percentage

ICICI

20

20

HDFC

30

30

PNB

20

20

Other

30

30

100

100

TOTAL
Sources: Primary Data

Graph no. 4.2 AWARENESS ABOUT THE HOME LOAN PRODUCT OF


FOLLOWING BANK

Awareness about home loan

30%

20%

ICICI
HDFC
PNB
Other

20%

30%

Interpretation
From above data it can be concluded that, 30% of the respondent mostly aware
about the home loan scheme of HDFC, 20% respondents aware each of ICICI and
PNB and 30% respondents other banks.
In other State bank of India, central bank of India, bank of Maharashtra is involved.

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
Table No. 4.3 RESPONDENTS TAKEN HOME LOAN OR NOT
Option
Sr. No
1
2

Number of respondents

Yes
No
TOTAL

100
0

Percentage
100
0

100

100

Sources: Primary Data


Graph no. 4. 3 RESPONDENTS TAKEN HOME LOAN OR NOT

Home loan taken

Yes
No

100

Interpretation
From above data it can be concluded that, 100% respondents are taken the
home loan and 0% respondents have not taken the home loan.

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

Table No. 4.4 FACTOR INFLUENCING RESPODENTS TO TAKEN LOAN


Factor

Number of

Interest rate

respondents
16

16

Service provide by peoples coop.

43

43

Sr. No

Percentage

bank, hingoli

Payback period

20

20

Other

21

21

100

100

TOTAL
Sources: Primary Data
Graph no. 4. 4 FACTOR INFLUENCING RESPODENTS TO TAKEN LOAN

21

16

Interest rate
Service provide by
peoples coop. bank,
hingoli

20

Payback period
43

Other

Interpretation
From above data it can be concluded that, 43% respondents have said the
factor of taking home loan to service provided by Peoples cooperative Bank, Hingoli,
16% respondents said interest rates, 20% respondents give payback period reason and
21% respondents said other.

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
In other State bank of India, central bank of India, bank of Maharashtra is involved.
Table No. 4.5 IN FUTURE, RESPONDENTS WOULD BE INTERESTED TO TAKE
HOME LOAN
Opinion

Number of

Sr. No

Percentage

1
2

Yes
N0
TOTAL

respondents
55
45

55
45

100

100

Sources: Primary Data


Table No. 4.5 IN FUTURE, RESPONDENTS WOULD BE INTERESTED TO TAKE
HOME LOAN

Number of respondents

Yes
N0

45%
55%

Interpretation
From above data it can be concluded that, 55% of the respondents are would
be take loan in future, and 45% respondents dont want to take home loan in future.

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

Table No. 4.6 WHEN HAVE TAKEN LOAN BY RESPONDENTS


Time

Number of

Sr. No
1
2
3

Percentage
Before 1 year
Before 2-3 years
Before more than 3 years
TOTAL

respondents
33
46
21

33
46
21

100

100

Sources: Primary Data


Graph no. 4.6 WHEN HAVE TAKEN LOAN BY RESPONDENTS

time of loan taken

Before 1 year

21
33

Before 2-3 years


Before more than 3
years

46

Interpretation
From above data it can be concluded that, the time is shown when respondents
taken home from the peoples cooperative bank, Hingoli
Before 1 year- 33%
Before 2-3 years- 46%
College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
Before more 3 years- 21%
Table No. 4.7 THE AMOUNT OF HOUSING LOAN TAKEN BY THE
RESPONDENTS
Amount

Number of

Sr. No
1
2
3

Percentage
5-10 Lacs
10-15 lac
More than 15 lacs
TOTAL

respondents
69
20
11

69
20
11

100

100

Sources: Primary Data


Graph no. 4.7 THE AMOUNT OF HOUSING LOAN TAKEN BY THE
RESPONDENTS

Amount of loan taken

11

5-10 Lacs
10-15 lac

20

More than 15 lacs


69

Interpretation
From above data it can be concluded that, 69% of the respondents are said 510 lacs loan taken from the bank of Peoples Cooperative, Hingoli, 20% said 10-15
lacs, and 11% respondents said more than 15 lacs.

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
Table No. 4.8 REASON OF TAKING LOAN FROM PEOPLES COOPERATIVE
BANK HINGOLI
Reason

Number of respondents

Sr. No

Percentage

Faster processing

39

39

Interest rates

31

31

Brand image of the bank

21

21

other

09

09

100

100

TOTAL
Sources: Primary Data
Graph no. 4.8 REASON OF TAKING LOAN FROM PEOPLES COOPERATIVE
BANK HINGOLI

Reason for taking loan

Faster processing

Interest rates
21

39

Brand image of the bank


other

31

Interpretation
From above data it can be concluded that, 39% of the respondents are said
reason for taking loan from peoples coop. bank, Hingoli is fast processing and 31%

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
are said to interest rates of the bank, 21% said brand image of the bank and 09% said
other reason.
Table No. 4.9 RATING OF THE INTEREST RATES CHARGE BY THE PEOPLES
COOPERATIVE BANK HINGOLI
Rating

Number of

Sr. No
1
2
3
4

Highly satisfactory
Satisfactory
Averagely satisfactory
dissatisfactory
TOTAL

Percentage

respondents
31
29
22
18

31
29
22
18

100

100

Sources: Primary Data


Graph no. 4.9 RATING OF THE INTEREST RATES CHARGE BY THE PEOPLES
COOPERATIVE BANK HINGOLI

rating of interest rates

Highly satisfactory

18
31

Satisfactory
Averagely satisfactory
dissatisfactory

22

29

Interpretation

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
From above data it can be concluded that, 31% of the respondents give rating
as highly satisfactory to interest rates of Peoples cooperative Bank, Hingoli, 29%
give satisfactory, 22% rate averagely satisfactory and 18% give dissatisfactory.
Table No. 4.10 RATING OF THE EMI OF PEOPLES COOPERATIVE BANK
HINGOLI
Sr. No
1
2
3
4

Rating

Number of respondents

Highly satisfactory
Satisfactory
Averagely satisfactory
dissatisfactory
TOTAL

28
22
15
35

Percentage
28
22
15
35

100

100

Sources: Primary Data


Graph no. 4.10 RATING OF THE EMI OF PEOPLES COOPERATIVE BANK
HINGOLI

rating of EMI
Highly satisfactory

Satisfactory

Averagely satisfactory

dissatisfactory

35%

15%

28%

22%

Interpretation

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
From above data it can be concluded that, 28% of the respondents give rating
as highly satisfactory to EMI of Peoples cooperative Bank, Hingoli, 22% give
satisfactory, 15% rate averagely satisfactory and 35% give dissatisfactory.
Table No. 4.11 RATING OF THE DOCUMENTATION PROCEDURES OF
PEOPLES COOPERATIVE BANK HINGOLI

Sr. No
1
2
3
4

Rating

Number of respondents

Highly satisfactory
Satisfactory
Averagely satisfactory
dissatisfactory
TOTAL

28
22
15
35

Percentage
28
22
15
35

100

100

Sources: Primary Data


Graph no. 4.11 RATING OF THE DOCUMENTATION PROCEDURES OF
PEOPLES COOPERATIVE BANK HINGOLI

rating about deocumentry

28

35

Highly satisfactory
Satisfactory
Averagely satisfactory
dissatisfactory

15

22

Interpretation

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
From above data it can be concluded that, 28% of the respondents give rating
as highly satisfactory to documentary procedures of Peoples cooperative Bank,
Hingoli, 22% give satisfactory, 15% rate averagely satisfactory and 35% give
dissatisfactory.
Table No. 4.12 RATING OF THE SANCTIONING PROCEDURES OF PEOPLES
COOPERATIVE BANK HINGOLI
Sr. No
1
2
3
4

Rating

Number of respondents

Highly satisfactory
Satisfactory
Averagely satisfactory
dissatisfactory
TOTAL

20
18
16
35

Percentage
20
18
16
35

100

100

Sources: Primary Data


Graph no. 4.12 RATING OF THE SANCTIONING PROCEDURES OF PEOPLES
COOPERATIVE BANK HINGOLI

rating of sanctioning procedures

20
35

Highly satisfactory
Satisfactory
Averagely satisfactory
dissatisfactory

18
16

Interpretation

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
From above data it can be concluded that, 20% of the respondents give rating
as highly satisfactory to sanctioning procedures of Peoples cooperative Bank,
Hingoli, 18% give satisfactory, 16% rate averagely satisfactory and 35% give
dissatisfactory.
Table No. 4.13 SATISFACTION FROM HOUSING FINANCE OF PEOPLES
COOPERATIVE BANK, HINGOLI

Sr. No
1
2

Opinion

Number of respondents

Yes
N0
TOTAL

55
45

Percentage
55
45

100

100

Sources: Primary Data


Table No. 4.13 SATISFACTION FROM HOUSING FINANCE OF PEOPLES
COOPERATIVE BANK, HINGOLI

satisfaction
Yes

45%

N0

55%

Interpretation

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
From above data it can be concluded that, 55% of the respondents are satisfied
with home loan of Peoples cooperative Bank, Hingoli and 45% not satisfied with
taking home loan of the bank.

Table No. 4.14 DURATION PREFERENCES OF LOAN OF PEOPLES


COOPERATIVE BANK HINGOLI
Duration
Sr. No
1
2
3
4

Number of respondents

Below 5 years
5-10 years
10-15 years
15-20 years
TOTAL

39
31
21
09

Percentage
39
31
21
09

100

100

Sources: Primary Data


Graph no. 4.14 DURATION PREFERENCES OF LOAN OF PEOPLES
COOPERATIVE BANK HINGOLI

Reason for taking loan

9
21

Below 5 years
39

5-10 years
10-15 years
15-20 years

31

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal
Interpretation
From above data it can be concluded that, 39% of the respondents prefer
below 5 years duration of EMI loan from peoples coop. bank, Hingoli and 31% are
prefer 5-10 years, 21% prefer 10-15 years and 09% prefer 15-20 years.

CHAPTER 5

FINDINGS & CONSLUSIONS


1. In this research process, 70% respondents are their own home.
2. In this research process, researcher found that, mostly respondents have aware
about HDFC home loan.
3. 70% respondents having taken home loans from bank.
4. From that research process, 43% respondents said the factor influencing to taking
home loan that service provided by the Peoples cooperative Bank, Hingoli.
5. In this research process, in future 55% respondents would be home loan taken
from the any bank.
6. In between the respondents who taken the home loan from a bank, they mostly
said that, they took loan before 2-3 years ago.
7. In the research process, 69% respondents taken the loan amount of 5-10 lacs most.
8. In this research process, mostly respondents said the reason to take the loan from
Peoples cooperative bank, Hingoli is to faster processing.
9. In the rating par, respondents rate the interest rate of the bank is highly
satisfactory.
10. In another part of EMI rating, mostly respondents rate the EMI as highly
satisfactory.
11. In this research process, respondents rate the documentation procedures as highly
satisfactory.
12. In this research process, respondents rate the sanctioning procedures as
satisfactory.
13. Mostly respondents are satisfied with taking home loan from the bank of Peoples
cooperative bank, Hingoli.
14. Duration that prefer by the respondents mostly is below 5 years.

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

CHAPTER 6

SUGGESTIONS
1. Bank should try to concentrate on the satisfaction level of the loan taker.
2. Bank should decrease the problem in case of the documentary, sanctioning, and
EMI.
3. Bank should try to sale more loans by reducing the interest rates.
4. They should try to provide loan schemes to the customers.
5. Bank should try to open more branches at tahsil level and other district level
where it havent branch.
6. Bank should try to create advertisement about loan schemes of the bank.
7. Bank should try to aware the customer about the all procedures and documentary
before the loan taken.
8. Bank should try to give more emphasize on the loan scheme.

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

CHAPTER 7

HYPOTHESIS TESTING
1.

Customers are satisfied by the housing finance facilities provided by the


peoples co-operative bank.

Satisfaction from housing finance of peoples cooperative bank, hingoli

Sr. No
1
2

Opinion

Number of respondents

Yes
N0
TOTAL

78
22

Percentage
78
22

100

100

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

satisfaction

22%

Yes
N0

78%

From above data it , 78% of the respondents are satisfied with home
loan of Peoples cooperative Bank, Hingoli and 28% not satisfied with taking
home loan of the bank. Alternate hypothesis is proved.

2.

The process of loan and documentation are easy and bank approved more
number of proposals.
Process of loan and documentation are easy of Peoples co-operative
bank, Hingoli

Sr. No
1
2

Opinion

Number of respondents

Yes
N0
TOTAL

55
45

Percentage
55
45

100

100

College of Management & Computer science, Yavatmal

A Study of Housing Finance with reference to Peoples Co-operative Bank Hingoli


Branch Yavatmal

satisfaction

Yes
N0

45%
55%

From above data it , 55% of the respondents are said yes to lengthy
documentation with home loan of Peoples cooperative Bank, Hingoli and
45% said no. Alternate hypothesis is proved.

College of Management & Computer science, Yavatmal