A Major Research Project

on
“CUSTOMER SATISFACTION”

at

SRG HOUSING FINANCE LTD. UDAIPUR

A Project report Submitted in partial fulfilment of the Requirement

For the Award of the Degree Of

Masters of Business Administration

(2016-2018)

at
FACULTY OF MANAGEMENT STUDIES,
MOHANLAL SUKHADIA UNIVERSITY
UDAIPUR (RAJ.)

Under the Guidance of: Submitted By:

Prof Anil Kothari REENA SHARMA
Director MBA-FSM IV SEM
FMS Udaipur FMS Udaipur

1
 STUDENT’S DECLARATION

I hereby declare that my report entitled “CUSTOMER SATISFACTION AT SRG

HOUSING LTD” submitted to Prof Anil Kothari is a record of an original work done by me
under the guidance of Prof. Anil Kothari of Faculty Of Management Studies, MLSU, Udaipur
and this project work is submitted in the partial fulfilment of the requirement for award of
MASTER OF BUSINESS ADMINISTRATION IN FINANCIAL SERVICE
MANAGEMENT (MBA - FSM).

The result embodied in this project has not been submitted to any other institute for any other
award or reward.

Place: Udaipur REENA SHARMA

Date: MBA (FSM- IV SEM)

2
 ACKNOWLEDGEMENT

I wish to express my sincere gratitude to Mr. Vinod Kumar Jain, MD for providing me an
opportunity to do my internship and project work in SRG HOUSING FINANCE
LIMITED.

I sincerely thank Mr. Ashok Modi CFO for his guidance and encouragement in carrying out
this project work. I also wish to express my gratitude to the officials and other staff members
of SRG group who rendered their help during the period of my project work.

I also thank the director of Faculty of Management Studies, Prof Anil Kothari for providing
me the opportunity to embark on this project.

3
 PREFACE

I have made this report file on the topic “CONSUMER SATISFACTION”

I have tried my best to elucidate all the relevant details to be included in my report. While in
the beginning I have tried to give general view about this topic.

My effort and wholehearted co-operation of each and every one has ended on the successful
note. I express my sincere gratitude to Mr. Ashok Modi, CFO - SRG HOUSING FINANCE
LIMITED, assisting me throughout the preparation of this topic.

I thank him for providing me reinforcement, confidence most importantly track for the topic
whenever I needed it.

4
 EXECUTIVE SUMMARY

In the growing global competition, the productivity of any business concern depends upon the
behavioural aspects of consumers. This topic deals with the customer satisfaction towards
housing loan. Many banks are providing loans whether commercial bank or financial
institutions to the people who want to had a home. The housing sector plays an important role
in economic development of the country.

My project title is “CUSTOMER SATISFACTION AT SRG HOUSING FINANCE LTD.”

This project involved the satisfaction of customer about home loan services at various
branches of the company. The research involved studying existing customers. It covered each
and every aspects of home loan which can affect customer satisfaction. The main objective of
the study was to find out areas where customers are not satisfied with the services offered by
SRG Housing Finance Company towards home loan.

The company mainly caters the loan to rural sectors in the area include Rajasthan, Gujarat,
Madhya Pradesh, Maharashtra. The loan amount lent is between 1 Lakhs to 2 Crores. The
rate of interest varies from 18% to 24% depending upon the credit procedure.

The study shows that most of the customers are happy with the services given by the SRG
housing finance company. But the reason of dissatisfaction mainly lies with the interest rate
and processing charges. Documentation required for granting loan are very less and
customers don’t have to panic more regarding the complexity of the loan procedure.

Customer’s Satisfaction has become challenging issue for every financial institution as every
organisation is trying to provide services superior to the competitors.

I have done my research at SRG Housing Finance Ltd. and the information I received there,
along with the secondary research, helped me in strengthening my knowledge base regarding
the topic.

5
 CONTENT

S. NO. TOPIC PAGE NO.

1 CERTIFICATE I
2 DECLARATION II
3 ACKNOWLEDGEMENT III
4 PREFACE IV
5 CONTENT V
6 EXECUTIVE SUMMARY VI

7 INTRODUCTION 7
7.1 INTRODUCTION TO HOME LOAN 8-10
7.2 COMPANY PROFILE 11-19

8 INTRODUCTION TO CUSTOMER SATISFACTION 20-22

9 SWOT ANALYSIS 23-24

10 RESEARCH METHODOLOGY 25-30

11 ANALYSIS OF DATA AND INTERPRETATION 31-49

12 FINDINGS, SUGGESTION AND CONCLUSION 50-52

13 BIBLIOGRAPHY 53

14 APPENDIX 54-57

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 CHAPTER 1

INTRODUCTION

7
INTRODUCTION OF HOME LOANS

HOME LOAN

Home loans are loans you have access to, depending on whether you want to buy or build a
house and can also be used to repair or extend an existing house.

Who can avail of these loans?

According to lending institutions, any Indian resident who is over 21 years of age at the
beginning of the loan and below 65 at its maturity can avail of the loan. Salaried Employees
as well as Self- Employed citizens can apply. NRI Salaried and RBI Self Employed, under
RBI guidelines, can approach only nationalized banks and other HFC for loans.

Why should one opt for a loan?

Taking a loan seems like a good option when the money at hand is insufficient to buy the
house of your dreams. Consider couples in their twenties and thirties. They enjoy a good
income currently, buy their accumulated capital isn’t enough to purchase a house. Whereas a
home loan can give them access to capital their current earnings.

Also, if you take a 10 years old loan when you are thirty, you could repay it by the time
you’re forty. So you don’t have to be burdened with the interest and are free to plan your
retirement savings.

The Quantum of loan that one can avail of:

Loan sanctioned depend on your repayment capacity – which is based on your current
income and your future repayment capacity. You would include your spouse’s name to
enhance the loan amount. The maximum loan can be sanctioned varies with each
bank/institutions and ranges from Rs.10 lakhs to Rs. 1 crore.

Benefits of taking a home loan:

A home loan is very different from a personal loan like a car loan for instance. You can
utilize a home loan for financing an asset that will hold its value and even appreciate over the
period of the loan. Though its price could fluctuate in the short terms, Total Estate will show
capital appreciation over the years. The value of your house generally while the loan remains

8
constant. If you had opted to wait, save up and buy a house, it would, in the long run cost you
much more; home loans also come with many tax benefits.

FINANCIAL IMPLICATIONS OF AVAILING A LOAN (SMALL OR BIG)

There are several expenses/charges involved apart from repayment of the actual loan amount:

a) Processing fees:- Processing fee is a charge that is levied by most of the housing finance
institution or banks. It is a percentage on the sanctioned loan amount and is normally paid
when the application form is submitted. Instead of a percentage, some homes loan financial
institutions also charge a particular fee according to the loan amount. The fees paid in excess
is adjusted at the time of submission of application with the charges, when a lower amount is
sanctioned, which one makes to the financial institutions. The processing fee is refunded by
most of the financial institutions, in case of rejection of the loan application.

b) Administrative fees:-Administrative fee is a percentage of the approved loan amount.

Housing finance institution/banks or collects this amount for issuing interest certificates,
maintaining customer's records, technical and legal charges, etc throughout loan’s tenure.
This charge is paid by the customer on receipt of offer letter from Housing finance
institution/banks. This payment is made before availing the disbursement amount.

c) Rate of interest:-Rate of interest is applicable throughout the loan amount’s tenure and is
charged on the principal monthly reducing manner. Customers are given an option to choose
the rate of interest from either a fixed or a variable rate by most housing finance
institution/banks.

d) Legal Charges:-Legal charges are levied by some housing finance institution/banks mainly
Public Sector Banks which they incur on their panel of lawyers on getting the property
documents vetted.

e) Technical Charges:-To meet their cost on visit to the customer’s property for ensuring
quality of construction and according to the norms of the respective approval authority,
certain Housing Finance Institutions/Banks levy technical charges.

9
f) Stamp Duty and Registration Charges:-The Stamp Duty and Registration Charge are levied
on to customer by housing finance institution/banks, in case of registered mortgage, which
varies from state to state depending on the state laws where one buys a property.

g) Charges on Personal Guarantee:-Housing finance institution/banks demand for personal

guarantees from the customers. Charges on stamping of personal guarantee given by the
customer are also recovered from the customer.

h) Cheque Bounce Charges:-Housing finance institution/banks levy a nominal charges on the

customer whenever a cheque, through payments is made to housing finance institution/banks,
get dishonored.

i) Delayed payment charges:-If the customer delays the payment of installments beyond the
due date, housing finance institution/banks charges for the delayed payment from the
customer.

j) Additional charges:-Most housing finance institution charge a particular percentage on the

delayed payment. When a customer fails to clear the dues within a stipulated time frame these
charges are levied.

k) Incidental charge:-When a representative from housing finance institution/banks is sent for

collection of outstanding dues, incidental charges are payable from the customer which is
normally charged at an even rate per visit. Most housing finance institution/banks levy these
charges.

l) Prepayment Charges:-When a customer makes a part prepayment or a full repayment of the

loan, penalty of prepayment charges is charged by housing finance institution/banks. This is
levied only on round sum payments and not on the EMIs that is paid by the customer. This
charge is not levied on the entire outstanding principal, but only on the amount prepaid.
These charges are levied by most Housing Finance Institutions and Banks while granting
home loan to the Customers.

10
WHAT ALL ONE CAN TAKE THE LOAN FOR?

There are different types of home loan:-

• Home purchase loan: This is the basic home loan for the purchase of new home.
• Home improvement loans: These loans are given for implementation repair works &
renovation in a home that has already been purchased by the client.
• Home construction loan: This is available for the construction of new home.
• Home extension loan: This is given for expanding or extending an existing home for
e.g.: addition of an extra room etc.
• Home conversion loan: This is for those who have financed the present home with
home loan & wish to purchase& move0 to another home for which some extra funds
are required through home conversion loan ,existing loan is transferred to the new
home including the extra amount required eliminating the prepayment of the previous
loan.
• Land purchasing loan: this loan is available for the purchasing of land for both
construction and investment purpose.
• Bridge loan: these are designed for those people who wish to sell the existing home
& purchase another one. The bridge loan help finance the new home, until a buyer is
found for the home.

11
COMPANY PROFILE
The importance of financial institutions in the modern economy cannot be neglected. They
occupy a very important place in the field of commerce and industry of any country. They are
so important that modern business is certainly impossible without them and number country
can achieve commercial and industrial progress in the absence of sound financial system.
These financial sectors have different products at different rates. The growing competition
between the financial institutions had made each of them to delight their customer rather than
satisfying them. The emergence of new generation private financial institutions has made the
entire financial sector tougher and much more competitive. They provide various services to
the customer to overcome the competition

12
 SRG HOUSING FINANCE LIMITED
INTRODUCTION

SRG Housing Finance Ltd is leader in housing finance sector. The company is headquartered
in Udaipur, Rajasthan, India. The corporate office of the company is at Andheri east Mumbai,
Maharashtra

Company is first in Rajasthan to get license from NHB.

Company is first in Rajasthan to be listed on BSE SME platform.

Company is first in India to migrate from BSE SME platform to BSE main board.

SRG HFL’s present model is the brainchild of Mr. Vinod K Jain, the company’s MD. His
vision is to provide housing finance to people in rural area which is generally under rated and
left ignored by other financial institutions. The company was incorporated on 10th march
1999.

SRG Housing Finance Limited engaged primarily in the business of providing housing
finance for home ownership, by offering:

• Individual home loans

• Loans against property
• Builder’s Loans

PRODUCTS

The company has five individual home loan products –

• SRG Dream Home

It is offered to customers for the purpose of purchase of house or flat.

• SRG Construction Loan

It is offered to customers who wish to seek this facility for construction of Residential
Property.

13
 • SRG Home Revision Loan

It is offered to customers who wish to repair, renovate, and/or extend the existing
accommodation.

• SRG Plot Loans

It is offered to the customer for outright purchase of plots for the construction of a house.

• NRI Housing Loan

It is offered to Non Resident Indians for construction and purchase of Residential properties
in India.

The company has two products under loans against property.

1. SRG Wealth Loan

It is offered to Salaried Person or businessmen against mortgage of immovable properties for

such purposes as may be desired by the borrower.

2. SRG New Avenue Loan

It is the loan for purchase and/or construction of non-residential and commercial property.

BUILDER/ PROJECT LOAN

In these segments we are financing to builders for their housing projects for purchase of land,
conversion and development of land, development of housing colonies, construction of flats,
houses, etc. with repayment linked with sale of flats or on EMI basis.

GENERAL FEATURES OF SRG

SRG provide home loan in a hassle free environment

• Reasonable amount of 80% of cost

• Interest on monthly rest

14
 • No hidden cost

• Provide Loans availability anywhere in Rajasthan, Maharashtra, Madhya Pradesh and

Gujarat (subject to Company’s Policy).

• Flexible loan repayment options

• Safe document storage

AMOUNT OF LOAN

Customer can avail Loans up to 15% of NOF of the Company but not exceeding the 80% of
the total documented cost of the property (subject to NHB Directions). The actual loan
amount is determined taking into account factors like:

• Repayment capacity

• Age

• Educational qualifications

• Stability and continuity of income

• Number of dependents

• Co-applicant's income

• Assets

• Liabilities

• Saving habits, and more

LOAN TENURE AND EMI

The tenure of your Home Loan ranges from 1 to 15 years. The term however does not extend
beyond the retirement age or 60 years whichever is earlier (65 years for self employed
individuals).

The size of EMI depends on

• Quantum of loan

• Interest rate applicable

• Loan tenure.

15
SERVICES AND CHARGES
SR. NO. CHARGE TYPE
1 Login Fee
UPFRONT CHARGES (CHARGES BEFORE DISBURSEMENT)
2 Processing Charges
3 Non Postal Stamp / Stamp
Duty
4 Non-encumbrance Certificate /
Search Report (per property)
5 Technical Fee Collected (per
property)
6 CERSAI: At the time of
Disbursement : Creation of
Charge
7 CIBIL
8 Property Inspection charges
CUSTOMER SERVICE CHARGES
9 CERSAI: At the time of
Modification of Charge ( in
case of Top Up)
10 Prepayment Charges
CHARGE DESCRIPTION
Rs.1000/- +applicable taxes
0%-2% + applicable taxes (on the sanctioned
value) to be collected before disbursement or
deducted from first disbursement.
As per applicable law of the state
Rs.2000/- +applicable taxes
Rs. 4000/-applicable taxes in Mumbai
Rs.2000/-+applicable taxes
100/-+ applicable taxes
100/-+ applicable taxes
Rs.500/-+applicable taxes
as per the charges levied by CERSAI
+applicable taxes
Part– Prepayment/ Fore Closure of Home
Loan on Variable/ Floating Rate of
Interest:
No Prepayment Charges, If The Loan Is Part
Prepaid/Foreclosed Through Any Source.
Part-Prepayment/ Foreclosure of Home
Loan on Fixed Rate of Interest:
No Prepayment Charges, If The Loan Is
Foreclosed Through Own Source.
However if the payment is made by
borrowing from a Bank/ HFC/ NBFC and/ or
a Financial Institution:
3% + applicable taxes as applicable in pre-
closure charges would be levied on principle
o/s & all part prepayments done in last 12
months in case loan is closed after 12 months
of the first disbursement.
5% + applicable taxes as applicable in Pre-
Closure Charges would be levied on principle
o/s & all part prepayments done in case loan
is closed within 12 months of the first
disbursement.
Cheque return charge of INR 500/- +
16
 applicable tax as applicable per instrument is
payable in case of a dishonoured cheque or
ECS.
11 Cheque/ECS Bounce Charges Cheque return charge of INR 500/- +
(Per Instrument/Transaction) applicable tax as applicable per instrument is
payable in case of a dishonoured cheque or
ECS.
12 Late Payment Interest 3% per month compound for no. of days
delayed in PEMI / EMI payment.
13 Duplicate No Dues Certificate Rs.500/- + applicable taxes
14 Copy of Property Papers Rs.500/- + applicable taxes
15 Duplicate Annual Account Rs.500/- + applicable taxes
Statement, Provisional
Certificate
16 Loan prepayment/closure Rs.500/- + applicable taxes
(fully)statement / SOA /
Repayment Schedule charges
17 Each Personal Visit to Rs.500/- per visit plus applicable taxes
customer’s place for collection
of dues
18 Legal Charges Legal charges as applicable on case to case
basis
19 Recovery Charges At actual+ applicable taxes
20 Custodial fee for Keeping 500 per month (post 60 days from loan
property document in closed closure date) + Goods and Service Tax
account
21 Duplicate Certificate Charges Rs.500/- + applicable taxes
22 Contract Amendment Charges Rs.500/- + applicable taxes
23 Cheque/ECS Swapping
Charges (per set):
PDC to PDC Rs. 1000/- (Inclusive of applicable taxes)
PDC to ECS NIL
ECS to ECS Rs. 1000/- (Inclusive of applicable taxes)
ECS to PDC Rs. 1000/- (Inclusive of applicable taxes)
CHARGES AT THE TIME OF FORECLOSURE
24 CERSAI: At the time of Loan
Closure: – Satisfaction of NIL
Charge (removal of lien)
25 Documents Retrieval and Rs 500/- (applicable taxes if applicable)
Handling Charges (Courier Handling Charges)
(Chargeable at the time of
handing over security
documents on closure of loan)

17
DOCUMENTS REQUIRED

For Salaried Individuals

• KYC Documents

• Property documents against which loans is to be taken.(Originals with Photocopies )

• Salary slip for the last 3 months / Salary Certificate

• Latest Form - 16 if salary above Rs.10000/- per month

• Copy of all bank pass books / bank statements for the past 6 months including front
page

• Company profile if it is a lesser known organization.

For Self - Employed Businessmen / Professionals / Others

• KYC Documents

• Property documents against which loans is to be taken.(Originals with Photocopies )

• Copy of last 3 years Income Tax Returns of the applicant along with computation of
income duly attested by a Chartered Accountant

• Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm duly attested
by a Chartered Accountant

• Bank Statement for the last 1 year for the Savings A/c & Current A/c

• Copy of either Shop & Establishment License / GST Registration or any other
mandatory license / registration

• Copy of the Partnership Deed (if Applicable)

• Copy of Tax Deduction certificate / Form - 16A (if applicable)

• Details of Contract (if applicable)

• Copy of Advance Tax paid / self assessment tax paid Challan.

• Copy Educational Qualification Certificate( applicable for Professionals)

• Copy Professional Practice Certificate (applicable for Professionals)

18
BENEFITS AT SRG:

• Flexible repayment schedule.

• Home Loan in just 48 Hours

• Less documentary requirement

• Assistance of all kinds to our customers: at a distance of just one call.

19
 LOAN APPROVAL PROCESS

STEP 1: APPRAISAL

STEP 2: SECURITY EVALUATION

STEP 3: LOAN SANCTION

STEP 4: DISBURSEMENT

Step 1 –Appraisal

The client visits our office with his requirements and personal details. He is then explained
the complete procedure for availing home loan & all the necessary documents are called for.

At this stage, we want to determine that you can afford the loan repayments. Our credit team
will conduct income verification and validate the accuracy of the information you have
provided.

Credit check will then be carried out to reveal your credit history; in this case we as a lender
will obtain a credit report that will show the following details:

Personal details such as: Name, Residential Addresses, Date of Birth and PAN card number
Records of some recent credit accounts (if any).

As your credit history plays an important part in the home loan application process, it is
always advisable to clarify and resolve any credit related issues before lodging your loan
application.

20
Step 2 - Security Evaluation

A) Technical Evaluation

A qualified technical officer will conduct a valuation on the property you intend to purchase
and any property that will be used as security.

We have appointed a Field Investigation (F.I.) agency for checking correctness of all the
personal information provided by the client such as – number of earning/non-earning
members in family, relationship with the neighbours, number of years at the current
residence, nature of construction of house property, living standard of the family, affiliation
with any political party, occupation of all earning members, name of their employer, name of
their organization, time since working with the current employer, details of any existing loan
facility availed with any other bank or individual & repayment track record of the same, his
pass book for saving bank account, his identity proof and property documents.

The FI agency then prepares a detailed report of its observations & if found positive then
Search and Valuation reports are being called for.

B) Legal Evaluation

A qualified lawyer will examine the property documents i.e. chain of agreements/title etc to
determine if the property documents provided by you are conducive for lending and provide
us a search Report for the same.
If there is any contradiction between any of the above 3 reports then an executive from our
office gives a personal visit for verification of the correctness of the same.

Step 3 - Loan Sanction

Considering there are no major issues with your income verification and credit checks, we
will provide sanction for your loan. This means that we will provide you a loan Agreement
favouring all the applicants to the loan.
A guarantor, who should be a person known to the company or a government employee, is
also asked to be a party to the contract & liable to the company in case of any default in
repayment of loan instalment by the borrower.

21
We recommend all applicants read this document carefully, sign and return it to us, making
sure the information is correct and that everyone understands all the terms and conditions.
Home loan executive will be there to guide you through this step and assist you in compiling
documents should we require any further information.
The maximum loan amount sanctioned in any case shall not exceed 85% of the value of
property as assessed by the Valuation Report prepared by approved valuers. If the loan
amount exceeds his capacity, then a co-borrower is being asked for.

Step 4- Disbursement
After such clearance, the disbursement course for the approved amount is prepared by the
company and it is handed over to you.
After receiving the funds you will start paying your first home loan repayment, usually one
month after the disbursement date.

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 CHAPTER 2

INTRODUCTION TO CUSTOMER SATISFACTION

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WHAT IS CUSTOMER SATISFACTION?

Customer satisfaction refers to how satisfied customer are with the product or services they
receive from a particular agency. The level of satisfaction is determined not only by the
quality and type of customer but also by the customer experience but also by the customer's
expectations. A customer may be defined as someone who

• has a direct relationship with, or is directly affected by your agency and

• Receives or relies on one or more of your agency's services or products.

Business always starts and closes with customers and hence the customer must be treated as
the king of the market. All the business enhancement, profit, status, image etc. of the
organization depends upon the customer. Customer Satisfaction is a part of customer
experience that exposes a supplier's behaviour or customer's expectation. Customer
satisfaction is the overall essence of the impression about the supplier by customer.

WHY ORGANIZATION FOCUSES ON CUSTOMER SATISFACTION:-

Business monitor customer satisfaction in order to determine how to increase their customer
base, customer loyalty, revenue, profits, market share and survival. Although greater profit is
the primary need. Exemplary businesses focus on the customer and his/her experience with
the organization. They work to make their customer happy and see customer satisfaction as
the key to survival and profit.

According to Philip kotler, satisfaction is a person’s feeling of pleasure or

disappointment resulting from comparing a products perceived performance in relation
to his or her expectations.

Customer Satisfaction = Result – Expectations (Or)

Customer Satisfaction = Performance – Expectations

24
The importance of understanding customer requirements is so great that
companies try innovative ways and means to get close to the customer and hear ‘the
voice of the customer’

REQUIREMENT FOR CUSTOMER SATISFACTION

Since customer satisfaction is an important goal of any marketing program. It becomes

necessary to establish factors which help satisfy the customers.

The important factors are:

• Quality

• Fair price

• Good customer handling skills

• Efficient delivery

• Effective and economical after sales service

• Serious consideration of consumer complaints

OBJETIVE: - The primary goal of customer satisfaction surveys is obtaining meaningful

data that can be used to enhance the operation of business. Surveys usually fall into a small
set of data points that can be calculated including:-

• Customer satisfaction regarding overall services of company.

• Customer opinion regarding company’s ability to keep up its promises.

• Customer opinion regarding company’s ability to meet its customer’s needs.

• Customer Satisfaction regarding time taken for loan approval.

• Customer Satisfaction regarding EMI schemes offered by company.

• Customer Satisfaction regarding interest rate charged by company.

• Customer Satisfaction regarding processing fees charged by company.

25
 CHAPTER 3

SWOT ANALYSIS

26
SWOT ANALYSIS OF HOUSING FINANCE (PRIVATE) SECTORS

STRENGTHS

 Direct customer contact.

 Strong understanding of the local mortgage market.
 It gives the most inclusive worldwide freight service in the industry.
 More focus on central procurement & E-procurement
 It offers several services like online banking, app, mobile banking, NRI services etc

WEAKNESSES

 Limited funding source as compared to bigger HFCs.

 High risks of defaults on borrowers.
 Government owned competitors
 Since this is a competitive segment, the market share growth is limited
 Competition from public sector and private sector banks means limited market share
growth

OPPORTUNITIES

 Rising affordability.
 Increasing urbanization.
 Tie-ups with corporate and business houses.
 Opportunities in Financial markets

THREATS

 Slowdown in economic growth.

 Fluctuations in interest rates.
 Changes in regulatory environment.
 Foreign banks that offer complex products

27
 CHAPTER 4

RESEARCH METHODOLOGY

28
RESEARCH METHODOLOGY

Research methodology is an important part of every project. Because it helps in knowing

how to select the representative sample from the world or the general population, the right
research tools and techniques to complete the research.

The study of the consumer behaviour is important because he is the king. The research
process is based upon survey method, so in order we go to service provider and services user
which is the customers.

The research involves the following steps:

• Define the problem and research objective: The problem and objective is to assess
the services offered by the various service providers and what the customer wants.

• Developing the research plan: The second stage of the research methodology is to
develop a research plan. The research plan is designed to take the decision on the data
sources, research approaches, research instruments, sampling plan and contact
methods.

• Survey research: It was a descriptive research.

• Research instrument: The use of an effective research instrument is very important

because through this instrument we collect data in this project through observations
and questionnaire.

• Sampling plan: After finalizing the research approach and instruments a sampling
must be designed.

• Sampling unit: Data have been collected from banks and websites.

• Sampling size: It has been collected from four banks.

29
 • Collect the information: After completing all the steps, the data are collected from
different sources.

• Analyze the information: After the data is collected they are analyzed to know the
findings. The data is then tabulated to develop various charts and graphs.

• Present the findings: As the last step, the findings are presented that are relevant to the
major decision making.

NEED OF THE STUDY

To evaluate the level of satisfaction among the customer, so as to improve the working of the
customer services department.

To improve the overall efficiency of customer representative towards customers.

OBJECTIVE OF THE STUDY

• How well is the customer understood, helped, listened and handled by our customer
services representative?

• Is Customer Satisfied with the grievance handling procedure?

• Satisfaction of customer towards interest rates and payment procedure.

• The main objective of the study is to find out the level of satisfaction of the
customers.

30
SCOPE OF THE STUDY

The scope of the study is to analyze the satisfaction level of home loan customers in and
around India. The study gathers information about rating the effectiveness of company
services, rating and ranking the different features and services offered by the company.
Primary data was collected from the existing loan customers and also non existing customers;
secondary data was collected from book manuals, magazines and websites. The study has
come out with valuable suggestions on basis of concrete facts, which help to frame its plan

and strategies to increase satisfaction level of the loan customers.

LIMITATIONS OF THE STUDY

1. The study is limited to all over India.

2. Because of the limited time, research is conducted with only 80 customers.
3. The data collected from the customer are qualitative in nature i.e. Views, perception,
satisfaction, opinion etc., may change from time to time.
4. The data collected are primary in nature. Hence there is chance for a biased of misleading
respondent from the customer.
5. On few occasions customer were reluctant to give information, because they were busy.

RESEARCH DESIGN:-

A Research design is an arrangement of condition for collection and research purpose with
economy in procedure. A good research design has the research the characteristics like,
problem definition, specific method of data collection and analysis, a research design is
purely and simply the frame work or planned for a study that guide the collection and
analysis of data.

A research design can be defined as “Arrangement of condition for collection and analysis of
data in the manner that aims to combine relevance to the research purpose with economy in
procedure.”

31
It consists of the blue print for the collection measurement and analysis of data. The research
used here is descriptive research

DESCRIPTIVE RESEARCH
The researcher is interested in knowing the proportion of people in a given population who
has behaved in a particular manner, making projections of certain thing and determining the
relationship between two or more variables in some areas. As the set up has been well
structured and is a rigid one, which could not be changed by giving sufficient thought in frail-
ling question, deciding type of data to be collected and procedure that has been used gives
the, proof of using description research. In descriptive research also there has been use of
cross sectional studies just because the researcher has taken only a sample of elements from
the given population. In the cross sectional study the survey research has been selected, as a
detailed study has to be obtained from a sample of large population.

SCOPE OF THE STUDY

The primary study is conducted in the Rajasthan. Due to time and resources constraints, the
primary study is limited to certain boundaries. But Secondary study has been made with the
help of various literatures. To find out the customer satisfaction with reference to services.

DATA COLLECTION

Both primary and secondary data has been collected for meeting the objective of the research.

32
PRIMARY DATA:-

The primary data does not exist already in records and publications. The researcher has to
gather primary data a fresh for a specific survey. The primary data can be gathered by way of
observation method where the research mix with the people concerned with the use of
particular product and not important clauses by observing the respondents. The second
method of collection of primary data is by way of experimentation method where some
variables are allowed to vary under a controlled environment and its cause and effect
relationship is studied. The third method of collection of data is by way of conducting a
survey. This method is used for collection of primary data. The primary data was collected
from customers in India city. For this research study, data was collected from various account
holders of the SRG Ltd. Data collection was carried out using personal interview method
guided by questionnaire as follows:
 Open-ended questions

 Closed ended questions

 Dichotomous questions

 Multiple-choice questions

 Ranking questions

SECONDARY DATA:-

The secondary data has been collected from secondary sources of information that included
website, books and previous report, brochures, journals, magazines, newspapers.

33
SAMPLING DESIGN

The precision and accuracy of survey results are affected by the manner in which the sample
has been chosen. The first thing for a sample plan is definition of the population to be
investigated. Defining the population is often one of the most difficult things to do in
sampling. Although ideal conditions might indicate threat the census would be preferable,
such ideal conditions rarely exist in the real world. A census is not feasible practically,
therefore sample is used. Two of major advantages of using a sample rather than a census are
speed and timeliness. A survey based on sample takes much less time to compete than based
on census. In this particular research study sample survey is done. Sample design is the most
important heart of sample planning. Sample design includes type of sample to use and the
appropriate sampling unit.

QUANTITATIVE METHIOD

A Telephonic Interview was selected as a tool to collect data from the respondents due to the
time and cost constraints. The questionnaire is structured into 18 simple questions. The
respondent is asked to rate his agreeability and disagreeability. The questionnaire is attached
as an annexure to this report. The questions are framed using minimum financial jargon that
customers should be comfortable with.

34
 CHAPTER 5

ANALYSIS OF DATA AND INTERPRETATION

35
CUSTOMER’S FEEDBACK

Method of Sampling: Random Sampling

Sample Size: 80

Method Used: Feedback on Standard Questionnaire through Tele Calling

and Personally at branch.

Factors –I - For Customer Satisfaction

1. The Customers have earlier account with housing Loan Company.

Serial No. Existing Customer in Housing Loan No. Of Customer %Age

1 YES 46 71
2 NO 34 29

EXISTING CUSTOMER IN HOUSING LOAN

YES NO

29%

71%

Interpretation – 71% of the customers are existing in Housing Loan.

36
2. Source of knowledge about housing Loan Company to the customers.

Serial No. Source of Knowledge No. Of Customer %Age

1 Advertisement 19 24
2 Market agent 23 29
3 Dealers 15 19
4 Friends 14 17
5 Others 9 11

SOURCE OF KNOWLEDGE
Advertisement Market agent Dealers Friends Others

11%
24%

17%

19% 29%

Interpretation – 29% of the customers contact to the market agent and 24% through
advertisement like TV, Radio & News Paper.

37
3. The Customers option on interest rate.

Serial No. Type of Interest Rate No. Of Customer %Age

1 Fixed interest rate 36 55
2 Floating interest rate 44 45

TYPE OF INTEREST RATE

Fixed interest rate Floating interest rate

45%

55%

Interpretation – Most of the customer like fixed interest rate due to a fix amount for their
instalment.

38
4 Do you like the presentation given by the sales people about the loan
process?

Serial No. Like Presentation No. Of Customer %Age

1 YES 68 84
2 NO 12 16

LIKE PRESENTATION
YES NO

16%

84%

Interpretation – 84% of the customer like presentation given by sale person, they can take
more information about loan process, repayment etc.

39
5 The Customers opinion about number of days taken to process the loan.

Serial No. Numbers of Days to Process Loan No. Of Customer %Age

1 1-2 Weeks 10 14
2 2-3 Weeks 22 30
3 3-4 Weeks 27 37
4 More than 4 Weeks 21 19

NUMBERS OF DAYS TO PROCESS LOAN

1-2 Weeks 2-3 Weeks 3-4 Weeks More than 4 Weeks

14%
19%

30%

37%

Interpretation – All customers have different opinion about loan process days.

40
6 The Customers opinion about whether documentation process is difficult.

Serial No. Documentation process difficult No. Of Customer %Age

1 Strongly Agree 9 11
2 Agree 23 29
3 Disagree 38 47
4 Strongly Disagree 10 13

DOCUMENTATION PROCESS DIFFICULT

Strongly Agree Agree Disagree Strongly Disagree

13% 11%

29%

47%

Interpretation – Most of the customers don’t face any difficulty for documentation.

41
7 The Customers approach to any other Bank before the loan from Financial
Institutions.

Serial No. Approach to other bank No. Of Customer %Age

1 YES 15 80
2 NO 65 20

APPROACH TO OTHER BANK

YES NO

20%

80%

Interpretation – 80% of the customers take first visit to the company.

42
8 The Customer’s preference for housing loan from housing Loan
Company.

Serial No. Customer’s preference for housing loan No. Of Customer %Age
from housing Loan Company
1 Easy availability 38 47
2 Easy repayment 22 28
3 Dealing with customer 11 14
4 Easy and fast service 9 11

CUSTOMER’S PREFERENCE FOR HOUSING LOAN FROM

HOUSING LOAN COMPANY
Easy availability Easy repayment Dealing with customer Easy and fast service

11%

14%

47%

28%

Interpretation –Most of the customer prefer to take loan from Housing company. Due to
their different kind of services. Mostly customer preference is based on easy availability of
loan.

43
9. The Customers opinion about interest on housing loans.

Serial No. Customers opinion about interest No. Of Customer %Age

1 High 20 24
2 Medium 45 54
3 Low 11 13
4 Not Applicable 4 9

CUSTOMERS OPINION ABOUT INTEREST

High Medium Low Not Applicable

9%

24%
13%

54%

Interpretation – 54% of the customer thing that interest rate is medium they can repay
easily.

44
10 The Customers opinion about repayment of monthly Instalment schedule
is easy.

Serial No. Repayment of monthly Instalment schedule No. Of Customer %Age

is easy
1 Strongly Agree 20 26
2 Agree 45 58
3 Disagree 10 13
4 Strongly Disagree 5 3

REPAYMENT OF MONTHLY INSTALMENT SCHEDULE IS

EASY
Strongly Agree Agree Disagree Strongly Disagree

3%
13%
26%

58%

Interpretation – 58% of the customer strongly agree that schedule of repayment in monthly
instalment is easy.

45
11 The Customers opinion about Demand of any securities availing for
housing loan.
Serial No. Demand of any securities availing for No. Of Customer %Age
housing loan.

1 Agree 17 24
2 Disagree 48 68
3 Not Applicable 15 8

DEMAND OF ANY SECURITIES AVAILING FOR HOUSING

LOAN.
Agree Disagree Not Applicable

8%

24%

68%

Interpretation – 68% of the customers not agree for deposit any securities against housing
loan.

46
12. The Customers opinion regarding recommending services to others.

Serial No. Recommending services to other No. Of Customer %Age

1 YES 62 87
2 NO 18 13

RECOMMENDING SERVICES TO OTHER

YES NO

13%

87%

Interpretation – 87% of the customer’s recommendation company services to others.

47
13 The Customers opinion about Company dealings.

Serial No. Customers opinion Company Dealing No. Of Customer %Age

1 Highly Satisfied 17 21
2 Satisfied 45 57
3 Neutral 11 14
4 Dissatisfied 6 8
5 Highly Dissatisfied 1 0

Customers opinion Company Dealing

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

8% 0%
21%
14%

57%

Interpretation – 57% of the customers are satisfied with company dealing with them.

48
14. The Customer opinion about SRG Housing Loan Company.

Serial No. Customers opinion Loan company No. Of Customer %Age

1 Highly Satisfied 15 19
2 Satisfied 36 46
3 Neutral 23 29
4 Dissatisfied 6 6
5 Highly Dissatisfied 0 0

Customers opinion Loan Company

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

6% 0%
19%

29%

46%

Interpretation – 46% of the customers are satisfied with company.

49
15. The Customer’s opinion about Processing of loan

Serial No. Customers opinion Processing of Loan No. Of Customer %Age

1 Highly Satisfied 12 16
2 Satisfied 33 42
3 Neutral 22 28
4 Dissatisfied 10 13
5 Highly Dissatisfied 3 1

CUSTOMERS OPINION PROCESSING OF LOAN

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

1%
13% 16%

28%

42%

Interpretation – 42% of the customer satisfied with the company’s process of loan.

50
16 The Customer perception towards penalty procedure of company.

Serial No. Perception towards Penalty No. Of Customer %Age

1 Highly Satisfied 11 14
2 Satisfied 21 27
3 Neutral 28 36
4 Dissatisfied 16 20
5 Highly Dissatisfied 4 3

PERCEPTION TOWARDS PENALTY

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

3%
14%

20%

27%

36%

Interpretation- Most of the customers have satisfied perception towards penalty.

51
17 The Customers opinion about Account management.

Serial No. Customers opinion Account management No. Of Customer %Age

1 Highly Satisfied 14 19
2 Satisfied 32 42
3 Neutral 22 29
4 Dissatisfied 7 9
5 Highly Dissatisfied 5 1

CUSTOMERS OPINION ACCOUNT MANAGEMENT

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

1%
9%
19%

29%

42%

Interpretation – 42% of the customers are satisfied with account management.

52
18. The Customer opinion about Customer service

Serial No. Customers opinion about Service No. Of Customer %Age

1 Highly Satisfied 13 17
2 Satisfied 49 60
3 Neutral 10 13
4 Dissatisfied 6 8
5 Highly Dissatisfied 2 2

Customers opinion about Service

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

2%
8% 17%

13%

60%

Interpretation – 60% of the customer are satisfied with company services.

53
 CHAPTER 6

FINDINGS, SUGGESTIONS AND CONCLUSION

54
FINDINGS

According to the Survey it was found

1. Majority of the respondents having accounts with the loan company.

2. The customer gathering information about the housing loans from the company
and also having very good opinion about the customer service provided by the
company.

3. This company 3-4 weeks taken to process the loan. Because of monthly instalment
schedule the customer felt easy to repay the loan amount.

4. Maximum customers are neutral towards the penalty procedure of the company.

5. The Customers’ opinion about Demand of any securities availing for housing
loan, majority of respondents were satisfied with Company dealings, Processing of
loan, Account management and Customer service.

SUGGESTIONS

The following suggestions have been made after the thorough survey and findings:

1. Company may reduce the barriers in the loan process and also to reduce the time taken for
facilitating the loan.

2. Company may modify their loan releasing system.

3. Company may update the changes in the interest rate to the customers.

4.The popularity of the housing loan schemes should be improved either by advertising (or)
other promotional activities so that brand name will be laid down in the minds of the
prospective customers.

5.Company may provide option for customers to select whichever additional facilities
they want at the time of availing loan. This will make customer feel that his likes are
considered.

55
6. Company may utilize the employee group to provide maximum service to the
customers. A more intimate customer relationship helps the company to retain existing
customers and capture more and more customers to the company.

CONCLUSION

The need to satisfy customers for success in any commercial enterprises is very obvious. The
income of all commercial enterprises is derived from the payments received for the
products and the services supplied to its external customers. If there are no customers, there
is no income and there is no business. This leads us to another important conclusion
customer satisfaction assumes even greater importance in a competitive business
environment.

56
REFRENCE

http://www.moneycontrol.com/stocks/company_info

www.srghousing.com/

www.iosrjournals.org

http://business.mapsofindia.com

http://www.incometaxindia.gov.in/tutorials/

57
APPENDIX

(I)GENERAL INFORMATION

(a) Name...............................................................................................
(b) Age...........................................................................................Yrs.
(c) Sex- M/F
(d) Occupation-
o Service
o Business
o Farming
o Other
(e) Amount of Housing Loan Rs...........................................................................
(f) Type of Housing Loan-
o Purchase
o Construction
o Renovation
o Conversion Loan

(II) INFORMATION REGARDING THE SATISFACTION OF

SERVICES RECIEVED BY CUSTOMERS

1 Do you have an earlier account with housing Loan Company?

o Yes
o No

2 What is the source of knowledge about housing Loan Company?

o Advertisement
o Market agent
o Dealers
o Friends
o Others

58
3 What is your option on interest rate?

o Fixed interest rate

o Floating interest

4 Do you like the presentation given by the sales people about the loan process?

o yes
o No

5 What is your opinion about number of days taken to process the loan?

o 1-2 weeks
o 2-3 weeks
o 3-4 weeks
o More than 4 weeks

6 What is your opinion about whether documentation process is very difficult?

o Strongly Agree
o Agree
o Disagree
o Strongly Dissatisfied

7 Do you approach to any other bank before the loan from financial institutions?

o Yes
o No

59
8 What is your preference for housing loan from Loan Company?

o Easy availability
o Easy repayment
o Dealing with customer
o Easy and fast service

9 What is your opinion about interest on housing loans?

o High
o Medium
o Low
o Not applicable

10 What is your opinion about repayment of monthly Instalment schedule is easy?

o Strongly Agree
o Agree
o Disagree
o Strongly Disagree

11 What is your opinion about Demand of any securities availing for housing loan?

o High
o Medium
o Low

12 Do you recommending our services to other people?

o Yes
o No

60
13 What is your opinion about Company dealings?

o Highly Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied

14 What is your opinion about Loan Company?

o Highly Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied

15 What is your opinion about Processing of loan?

o Highly Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied

16 What is your perception towards penalty procedure of company?

o Highly Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied

61
17 What is your opinion about Account management?

o Highly satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied

18 What is your opinion about Customer service?

o Highly Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied

62