A

PROJECT REPORT

ON

“A STUDY ON HOME LOANS’’

AT

“MAHINDRA HOME FINANCE”

BY
TUSHAR MAHENDRA KSHIRSAGAR

UNDER GUIDANCE OF

DR. POOJA MERCHANT

TO
SAVITRIBAI PHULE UNIVERSITY OF PUNE SUBMITTED IN THE PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF
MASTER IN BUSINESS ADMINISTRATION (MBA-MARKETING )

DR.B.V. HIRAY COLLEGE OF MANAGEMENT & RESEARCH CENTRE,

MALEGAON (2022-2023)
 ACKNOWLEDGEMENT

The satisfaction that the successful completion of the work would be incomplete unless we
mention the people, as an expression of gratitude, who made it possible and whose
constant guidance and served as light and crowed this efforts with success. This project
would not have been possible but for the support & guidance that I received from various
people at different stages of the project.

I would like to take the opportunity to thank and express my deep sense of gratitude to my
Guided Dr. Pooja Merchant. I am greatly indebted to her for providing her valuable
guidance at all stages of the study, her advice, constructive suggestions, positive and
supportive attitude and continuous encouragement, without which it would have not been
possible to complete the project I would like to thanks (Director) Dr. S.J. Jadhav, I would
also like to thanks our Academic Coordinator Dr. Kamran Rahmani for their cooperation
and assistance during the course of my project. .Lastly, I would like to thank my parents
for supporting me through my studies in College and providing me with everything I could
possibly want.

I once again express my heartfelt in debtness to all-aforesaid. Any omission or error in

acknowledgment is inadvertent. For such oversights and lapses, I tender unconditional
apology.

PLACE: TUSHAR MAHENDRA KSHIRSAGAR

DATE: / / MBA-II (MARKETING)

 STUDENT DECLARATION

I Tushar Mahendra Kshirsagar hereby declare that the project entitled "“A STUDY ON
HOME LOANS AT MAHINDRA HOME FINANCE” is a genuine and original work for the
partial fulfillment of Master in Business Administration to Savitribai Phule Pune University. To
the best of my knowledge, any part of this context has not been submitted earlier for any degree,
or Certificate examination. The collected data and certificate are true. Further I undertake that I
will be solely responsible for anything arise out of unfair mean.

DATE: - / /

PLACE: - NAME :-……………….....

SIGN: ………………………...
 INDEX

Chapter No. Title of contents Page No.

Introduction 5-14
1

Project Profile 15-16

2.1 Objective of the study
2 2.2 Scope of the Study
2.3 Limitation of Study

3 Company Profile 17-21

Research Methodology 22-24

4 4.1 Meaning
4.2 Definition
4.3Type Of Research
4.3 Data Collection

Data Interpretation 25-36

5

6 Findings & Recommendations 37-39

Conclusion 40-41
7

8 References 42-46
Appendix
 EXECUTIVE SUMMARY

Home is a dream of a person that shows the number of effort sacrifices luxuries and above all
gathering funds little by little to afford one’s dream. Home is one of the things that
everyone ones to owns. Home is a shelter for a person or where he rests and feels so
comfortable. Many banks provide home loans whether commercial banks or financial
institutions to the people who want to have a home. The housing sector plays an important
role in the economic development of the country.
My project title is “A STUDY ON HOME LOANS”. I selected this topic because The
Indian housing finance industry has grown by leaps and bounds in a few years. Total loans
disbursements by Banham have risen which witness phenomenal growth own things alast5
years. This is an area greater number of borrowers of home loans .so by this, a study find
out the satisfaction level of customers problems faced by them in obtaining home loans.

My objectives for the study are-

• To make a comparative study of other Disbursement of home loans by commercial banks.
• To study the satisfaction level of customers with home loans.
• To study the problems faced by customers in obtaining home loans.
For this, I had taken four commercial Banks in Dehradun city namely AMBIT, PNB,
standard chartered Bank, and SBI. It includes two public sector banks and two private
sector banks. The period of study is five years commencing from 2 to 004-2008.

In the research methodology, I had taken both primary data as well as secondary data
in the primary data, I made a questionnaire to check the satisfaction level of customers with
home loans. In the secondary data, studied the annual reports of RBI, commercial banks &
broachers of these banks.
For the first objective, I collected information about the number of account holders of
specified banks, the disbursement of home loans the recovery of these loans.

After analysis, I came to the following findings

In the comparative study of specified banks, it’s found that

2
 Punjab National Bank is having a large customer base with high loan disbursement and
recovery of loans.
 The standard chartered bank showed less outstanding balance which is presented in
percentage form in the diagram. In the case the of the second objective i.e. customer
satisfaction I, on the level it is found that
 Based on data, MBIT is emerging ata hhigherpositionComparedare to Standard
chartebanksbank and other public sector background round of professionally managed
services, reliable & transpSystemsSystem, easy query handl, in, g e, etc.

Problems Faced By Customers In Obtaining Home Loans Are

 The customer does not have proper knowledge about different Home loan products they
access problems making a good deal.
 There are procedural delays, which harass the customer’s lot which will crush the curtsy of
customers to avail the home loan.
 The attitude of bank employees is sometimes noncooperative and it creates a hurdle in
building trust and confidence among customers about banks.
 The banks do not take into account the paying capacity of customers. So some customers are
not able to get the number of loans Loaned by them.
 Finally, the whole research was carried out in a systematic way to reach exact results. The
whole research and findings were based on the objectives some of the illimitation sacred in
collecting the data were Lack of time, lack of data, non-response, reluctant attitude, and
illiteracy of respondents, which posed problems in carrying out the research.

 Some of the suggestions are

 To increase their customers, the banks should provide specialized services in this sector.
These services can be such as proper guidance to the Customer regarding the processing of
loans, especially for illiterate customers.

 To satisfy their customers and for good dealings in the future, the banks should make prompt
disbursement.

 The Banks should use an easy procedure, or say, the less lengthy procedure for the
sanctioning loans to the customer. There should be r of legal formalities, in case this exists,
then, these should be completed in less time. This will help attract customers.
3
 Although the interest rates are specific nor yet customers seek less interest rates which can
lower the cost of that use So banks should try to lower their interest rNeedlesseedles to say,
that the bank has having lower interest rates have the maximum clients for loans.
 The public sector banks should improve their overall services to increase the number of
customers for home loans. They should recruit professionals to provide such services and
to satisfy the customers.

4
 CHAPTER 1

INTRODUCTION

5
1.1 INTRODUCTION TO HOME LOANS
Home is a dream of a person that shows the number of effort sacrifices luxuries and above all
gathering funds little by little to afford one’s dream.

Home is one of the things that everyone wants to own. Home is a shelter for Performa’s
somewhere to rest comfortably. Many banks provide home loans whether commercial banks
or financial institutions to the people who want to have a home.

HDFC (Housing Development And Finance Corporation) Home Loan, India have been
serving the people for around three decades and providing various housing loan according
to their varied needs at attractive & reasonable interest rates. Owing to their wide network
of financing, Mahindra Housing Loans provides services at your doorstep and helps you
find a home as per your requirements.
Many banks are providing home loans at the cheapest rate to attract consumers towards
them. The customer-friendly attitude of these banks, currently of to consumers the cheapest
loan over homes.

Given the ACTH housing shortage in the country, and keeping in mind the so economic role
of commercial banks in the present times, the RBI advised banks to encourage the flow of
credit for housing finance.

With the RBI reducing bank rates, the home loan market rates nose-diving by 50 basis points.
The Mahindra Housing Loans and Standard chartered bank has become the first player in
this sector to announce a housing loan for20 years. No doubt it will enhance the end cost for
people to plan their house over a longer duration now; it has been made easy for a person to
buy that dream house they long ago.

Mahindra Housing Loans also provides with Home Improvement Loan for internal and
external repairs and other structural improvements like painting, waterproofing, plumbing,
and electric works, tiling and flooring, grills, and aluminum windows. Mahindra Housing
Loans finances up to 85% of the cost of renovation (100% for existing customers). The
current status is that Mahindra Housing Loans reduced home loan rates by 50 basis points
for all its existing floating rate customer.

6
 1.2 ADVANTAGES OF HOME LOANS:-
The various benefits of home loans arising to the customers are:-

 Attractive interest rates:-

The various banks offer attractive interest rates to boost and help their customers. Many
banks provide loans on fixed or floating rates to facilitate consumers as per their needs.
 Help in owning a home:-
The home is availed by a person with the help of banks because provided technical calls and
financial assistance to customers for owning their dream home.
(i) No requirement of guarantor:-
Commercial banks now a day, like liberal their laws regarding home loans. Some banks don’t
even require the guarantor to grant loans to their consumers. They also make consumers free
by reliving them to find a guarantor to complete the proceedings of availing loan.
 Door-Step Services:-
These door-to-step services are provided from the inquiry stage to the final disbursement
takes place such services are beneficial for customers in their present busy life. Banks like
ICICI bank and state bank provide door-to-step services to customers for loan loans.
 Loan period:-
Many banks provide maximum loan tenures up to15-20 years based on the loan amount and
the credibility of customers. This relieves the customers to repave the amount.
 For accidental death insurance:-
Some banks provide free accidental death insurance with housing loans which are also
beneficial for the customers.

These benefits or advantages of home loans are responsible for making them so popular
among customers that a person who does have and its n to buy, them they do it with a home
loan. Home loans help such persons in making their dream home.

1.3 DISADVANTAGES OF HOME LOANS:-

The main disadvantages of home loans are high lightened as below:
 Delays in processing:-
Many times, there are huge delays in the processing of providing home because variousious
formulations are to be fulfilled in this process. Due to this dede,l ays customers feel
mentally as well as financially weak.

7
 Fluctuating interest rates:-
Some banks give home loans at floating rates, which fluctuate at Different intervals due to
reasons. These changes sometimes may lead to an increase in interest rate which will
increase the cost of home loans to the customers

 High Cost:-
The public sector banks charge high processing costs for home loan sanctioning. They are
forced to pay serious charges at various stages to fulfill the requirements. Some consumers
are not able to pay such charges so such people could not avail the benefits of home loan
schemes.

1.4 DISBURSEMENT OF HOME LOANS:-

Every bank has its procedure to disburse the loan amount among customers. After choosing
your right home, the next step is the disbursement of home loans. The loan amount is
disbursed after identifying and selecting the property or home tis are purchased and
submitting the requisite legal documents. In the disbursement of home loans a clear title and
full verification to ensure that a person has full rights on his house. The 230A clearance of
the seller and /or 371 clearances from the appropriate authority income tax allowed.
 Eligibility criteria:-

However, if one is a resident or non-resident individual who is planning to buy a house in

India, one can apply for a home loan. If a person has decided to buy a property shortly
he/she can apply for a loan before even selecting the property. Once the maximum amount
to put into the property has been decided, the Housing Finance Institutions or Banks will let
the customer know how much he/she is eligible For to help plan out a budget
 Conditions regarding co-applicants: -
All Housing Finance Institutions lay down conditions on who can be co-applicants. all co-
owners of the property. need to be co-applicants to the loan necessarily. These institutions
do not permit minors to join in as either co ownersorors co-applicants because a minor is not
eligible to enter into ca on tracts per law. They do not permit even friends or relatives who
are not blood relatives to take property jointly. However, the Income of co-applicants can
be clubbed together to get higher loan eligibility. Given below is a Table that throws a
throw light on the acceptance of area applicant applicants for clubbing of income.

8
 Income Clubbing of Co-applicants: It is as follows:
Combination Income Clubbing: -

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

 Parent - son: - It can be clubbed if the other only son is there but not if any male sibling
exists.
 Brother-Brother: - If they are currently staying together and intend to stay together in the
new property, then only, their income can be clubbed for the above purposes.

 Brother-Sister: - No clubbing is possible.

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

1.5 THE HISTORY OF INDIAN HOME LOANS:-

Home loans in India have made people Buy Property in India despite the skyrocketing
prices. Today, we find considerable Real Estate Investment in India, either in the field of
Residential Property in India or Commercial Properties in India. Home Loans in India are
disbursed by many Banks as Loan Banking on one of the most important function financial
services in India. Property Dealers and Real Estate Consultants in India usually recommend
that we undertake appropriate Home Loan or Mortgage Loan counseling so that we can
Buy Apartment in India at an affordable Mortgage Rate. Pur chasing the home of your
dreams is not an easy task. EspecSpecimenplanslansbuysuy a home on loan. A home loan
means that you bHoustonsinon installments. In simpler terms when you want to own a
home and can’t afford to tamountingngt in lump a sum, you can pay it in monthly
installments with an interest rate.
The interest rates of home loans are expected to go down even further according to
analysts who foresee a cut down in the rates by the RBI in the wake of the decision taken by
the US Federal Reserve to cut its rates by a significant margin.
There is no number of companies that offer cheap loans lows low-interest s rate. You can
avail lot the against existing house for renovation or expand Many nationalized b offer that
offer finance for affordable housing. India Housing has put to get comprehensive data to
provide you with the cheapest Home Loans available in the market. We have listed all the
important housing finance institutes and some of the top home finance banks providing low
interest rates.

9
 In the last few years, the housing loan scenario in India has changed drastically. It has
taken a front seat and people are looking forward to owning their own houses. It is no more
a dream that required life saving and a difficult decision to make. Today the new home
purchase loan is much easily available and is much cheaper than what was available earlier.
Banks are now everywhere and the schemes are implemented even in villages and smaller
houses sing using loans are popular there too, however, the activity of building flats a little
low. It would not be wrong to say that there has been booming on the home loan market and
with this boom; there is also a boom in the Number of loan mortgage age brokers in India.
The main reason for this boom in the home loan market is the change in government
policies. It is our government’s motivation that the home loan interest rates in India have
fallen considerably. Lot many banks are offering home loans and this is available at least
low EMIs (Equated monthly Installments). High EMIs are now a thin the g today lending
rate is in the range of 7.5 to 15 %.

1.6 HOME LOAN PROCEDURE IN INDIA:-

Submission of Application Form: - After choosing a particular home loan, the customer
submits the application form to the housing finance company (HFC) along with other
relevant documents as required by the HFC. They comprise documents to establish income,
age, residence, employment, investments, etc. The customer also needs to hand over a
cheque for payment of an upfront (non -refundable) processing fee of about 0.5- 1% of the
loan amount to the HFC.
Validation of the Information: - In the next stage, HFCs validate the information provided
by the customer on the application form. They usually conduct checks on the residential
address of the customer, the place of employment of the customer, and the credentials of the
employer. Some HFCs may insist on a personal interview with the customer and perform a
reference check on the references provided by the customer on the application form.
Issue of Sanction Letter:- After due appraisal of the customer profile, a sanction letter is
issued which contains details such as loan amount, rate of interannual/monthly reducing
balance, the rate of the loan, mode of repayment general terms and conditions of the. o an.
Submission of Documents: - Once the sanction letter is passed, the customer is required to
leave the entire set of original documents about the property being purchased with the HFC
as security for the loan amount sanctioned.

10
 Validation of Property: - Before disbursement, the HFC also conducts a site visit to the
customer's property to ensure that all construction norms have been adhered to properly.
Once the HFC is satisfied that the property is legally and technically clear, they disburse the
loan amount. The disbursement from the HFI is based on the montage the instruction of the
property.
Payment Procedure: - Once all the above-mentioned processes, the borrower is entitled to
take the money from the lender party. Until such time that the entire sanctioned amount is
not drawn, the customer is supposed to pay simple interest on the Actual Amount drawn
(without any principal repayments). The EMI payments commence only after the entire
sanctioned loan amount is drawn.

1.7 INDIAN HOME LOANS INDUSTRY:-

Indian Home loans industry is growing at a fast pace 30% per annum, this can be seen in the
stats shown below with average ticket size (loan size) and Amount disbursed is rising every
year the opportunities have become more dominant for a different organizations in India. The
demand drivers are a fast-growing mid middle capsulation, a rise in it the workingwomen
workforce, bigger aspirations of youth saving, and Transparency in the real estate market.

GRAPH:- 1.1

Still, in comparison to other nations India has a long way to go, The figures shown below
show that even the GDP/mortgage ratio is low which indicates that credit is not well sought
as the figure below shows the average percentage of mortgage to GDP

11
GRAPH:-1.2

In comparison with other nations Indfallsall behind in terms of Mortgage Penetration which
directly demonstrates the potential in Ind the ian market for Housing mortgage finance
companies
GRAPH:- 1.3

Sources: RBI

Real Estate is currently sought of as a great means of Investment, the prices of residents have
shot up very high which are clearly shown in the figure below, the major cities
havwitnesseses lot of development and price appreciation which demonstrates the growing
demand. more and more people are migrating to cities for worbusinessss. More and more
jobs are created and price index rise becomes inevitable.

12
 Price Index: FIG-1.4

The above figure shows the rise in prices of space per sq feet in different major cities.
Housing shortage in India: - The below figure shows the ever-increasing demand for
houses in India and also mentioned here are the Rural and urban requirements. B ranks
aredrivinggg new strategies to tap both the markets in a different way – Rural/Urban. There
are categories with Indian loan demand, which is shown in this figure

FIG:- 5.6

1.8 RECENT TRENDS OF HOME LOANS IN INDIA:-

To understand the recent trends we need, to know or understand various factors. These
factors play a vitaroleoa le ithe n Ithe Indiann home loan market. These in the cluinterestest
rate on whicbankska s providhorebatesses, tax reloans on a home loa,s n, and its impact.

13
Apart from this to understand the recent trend we need to compare the trends of
homeloansinof different years. Here we have compared the interest and other market trends
of t t year 2009 with 2007-08. This kind of comparison gives the result which helps us to
uupdatetenthetenthetheofmarket market of any industry. Apart from the impact of present
and past economic ups and down also affect the trends. Today the US slowdown is a
thaissueue thatas affected almost all the industry. So we have also discussed this issue in
terms s tdefiningetherethethee f home loan markets in India.

14
 CHAPTER 2

PROJECT PROFILE

15
 2.1 OBJECTIVES OF THE STUDY
If there is no strongest foundation for your dream home then when can heap a loan. Home
loans have been a stronger foundation for people who want to own a home. The main
objectives of the study are as follows :-
 The main objective of this study is to know the Customer’s perceptions about home loans of
Mahindra Home Finance housing development finance corporation.

 Generating good business for the company by promoting and selling the products of
Mahindra Home Finance.
 To make a comparative study of other Disbursement of home loans by Commercial banks.

 To study the satisfaction level of customers with home loans.

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

2.2 LIMITATIONS OF THE PROJECT

The study being very extensive might be very difficult to complete within the stipulated
time of two months.
The project may suffer from financial constraints.
It may suffer from biases & ignorance of the respondents.

16
 CHAPTER 3

COMPANY PROFILE

17
ABOUT US:

WE ARE THE LARGEST HOUSING FINANCE COMPANY

Housing is a basic human need. We started Mahindra Rural Housing Finance Limited
(MRHFL) back in 2007 to provide convenient and low-cost housing loans for Indians living
in rural areas.

WHAT DEFINES US?

Rise

Mahindra is many companies united by a common purpose to enable people to Rise.

Our pillars of strength

Mahindra Finance

Over 2 decades ago Mahindra and Mahindra Financial Services Limited (MMFSL)
commenced its journey in the rural non-banking finance industry. Providing individuals
with personalized finance for a wide range of vehicles, small-scale business requirements,
and many other diverse endeavours – all to help people live their dreams and Rise in life.

Mahindra Finance noticed the rural market in India was extremely underserved, especially
when compared to a highly competitive, reasonably well-developed urban market. This
wide gap provided an opportunity. In 2007, as an Industry leader with a healthy financial
condition and a good reputation with the Reserve Bank of India, Mahindra Finance
(MMFSL), setup Mahindra Rural Housing Finance Limited (MRHFL) to offer home loans
– for new home purchase, construction, and home improvement in rural parts of India.

Mahindra & Mahindra Financial Services Limited (MMFSL) currently holds an 89% stake
in Mahindra Rural Housing Finance Limited (MRHFL).

THE MAHINDRA GROUP

The Mahindra Group operates in over 20 key industries, providing insightful and ingenious
solutions that are global in their ramifications. All the companies act as a federation, with
an optimum balance of entrepreneurial independence and synergy. From Mobility to Rural

Prosperity and IT, from Financial Services to Clean Energy and Business Productivity, The

18
Mahindra Group is empowering enterprise everywhere. Headquartered in Mumbai, India,
they have an operational presence in over 100 countries and employ more than 200,000
people. And although they operate across vast geographies, thier governing spirit of “Rise”
binds all the companies as one Mahindra, dictating that we empower people everywhere to
not only chart new frontiers, but to conquer them too.

The world’s largest tractor brand by volume, and India’s largest utility vehicle
manufacturer. The Mahindra Group remains committed to investing in technology, growing
India’s global presence while maintaining leadership positions. They are the largest NBFC
in rural and semi-urban India. They are one of the top 5 IT service providers in India. They
are India’s leading vacation ownership company. And are India’s largest multi-brand, pre-
owned car company. This is The Mahindra Group.

WHY HOME FINANCE?

Over 70% of customers have had an annual income of less than ₹ 2 lakh

Credit in rural India has been highly unorganized

Local moneylenders have had exorbitant interest rates

Rural customers have had income profiles that are not steady

Ticket size for loan requirements have been extremely small

Customers live far from each other, having made them difficult to reach & serve

WHAT'S OUR GOAL?

Transforming Rural Lives.Together.

We aspire to set the highest standard for housing finance in rural India in terms of
profitability, growth, employee engagement, trust, and awareness. We aim to increase home
ownership and resources in the housing finance sector of rural India. As we have shown, by
our initial success in this market as well as our constant growth and profits, we have laid the
foundations for our future.

19
 OUR TEAM

Mr. Shantanu Rege

Managing Director & CEO Dharmesh Vakharia
Chief Financial Officer

Srinivasan Kannan
AVP – Operations Aniruddha Shende

Pankaj Verma
National Head – Credit Moonmoon Roy National Head – Human Resources

20
Sourabha Kolhapure Hitesh Agrawal
Chief Risk Officer

Chief Technology Officer

21
 CHAPTER 4

RESEARCH METHODOLOGY

22
4.1 MEANING OF RESEARCH:-
Research methodology is a way to systematically solve the research problem. It may be
understood as a science how research is done scientifically. Research methodology refers to
the tools and methods used for obtaining information for the research study. Research not
only needs to know who needs to develop certain indices tests, how ttestslate the mean, the
mode, median, how to apply particular research techniques but also nneedstonow which of
these methods or techniques are relevant and which are not, and what would they mean and
indicate and why. All this means that the researcher must design his methodology for his
problems the same wayaydinnerr from problem to problem.

4.2 TYPE OF RESEARCH

DESCRIPTIVE RESEARCH:
This is a kind of research structurthatch is concerned with describing the characteristics of
the problem. In this way, the main purpose of such a research design is to present a
descriptive picture of the marketing problem on based continual fis it is important o obtain
complete and actual information about the subjects.

4.3 DATA COLLECTION:-

A secondary data source is an original data source that is one in which the data are collected
firsthand for reseapurposesposprojectsoject. Secondary data can be collected in several
ways.in the conduct of research, researchers rely on two kind’s data sources secondary and
secondary.

4.4 DATA SOURCES:

A) PRIMARY DATA: - It is firsthand data that’s collected by you only. The different way
of collecting primary data is a personal interview, questionnairesuburbsbe,y,y, etc. As my
project a is descriptive study there is no primary data collected as such.

B) SECONDARY DATA:-
Secondary data is collected from already existing sources in various organization broachers
& records. Secondary data for the study were collected from magazines, websites & other
previous studies.

23
To meet the objectives, the study used qualitative research. The descriptive study was done
through a review of existing literature that help in the validation and extraction of the
important variables and factors. Data was collected from secondary sources. Secondary
sources were magazines, websites, books, office executives, and company data.

I have also used an online questionnaire to understand the consumer buying behavior of
Indians in the digital era

4.5 DATA ANALYTICAL TOOLS: I have collected and analyzed the data
analysis review from the past research articles, research papers, journals, s, etc.

I have collected and analyzed the data analysis review from the past research articles,
research papers, journals, etc.

24
 CHAPTER 5

DATA ANALYSIS & FINDINGS

25
 ANALYSIS & INTERPRETATION

The analysis is based on the responses given by customers through questionnaires.

AGE GROUP OF SURVEYED RESPONDENTS

TABLE 5.1:

Age group No. of Respondents

18 - 25 years 27
26 - 35 years 7
36 - 49 years 19
50 - 60 years 7

CHART-5.1:

Age group
50 - 60 years
12%

18 - 25 years
36 - 49 years 45%
32%

26 - 35 years
11%

18 - 25 years 26 - 35 years 36 - 49 years 50 - 60 years

Analysis:- From the chart above we find that 45% of the respondents fall in the age
group of 18 – 25 years, 11% fall in the age group of 26 – 35 years, and 27% fall in the
age group of 36 – 49 years.
Therefore most of the respondents are relatively young (below 26 years of age). and 7%
of respondent ages are 50-60 years.

26
 GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

TABLE-5.2

Sr. No. Category No. of Respondents Percentage

1 Married 40 67%
2 Unmarried 20 33%
Total 60 100%

GENDER

Unmarried
33%

Married
67%

Interpretation
From the table and graph above it can be seen that
 67% of respondents are married.
 33% of respondents are unmarried.

27
 Educational qualification of respondent’s

TABLE-5.3

Sr. Category No. of Respondents Percentage

No.
1 Undergraduat 25 42%
e
2 Graduate 17 28%
3 Postgraduate 18 30%
Total 60 100%

QUALIFICATION

Postgraduate
30%
Undergraduate
42%

Graduate
28%

Interpretation
From the table and graph above it can be seen that
 42% of respondents undergraduate acetate.
 28% of respondents graduates
 30% of respondents aPostggraduateste.

28
 Several Years Are You in Nashik?

TABLE-5.4

Sr. Category No. of Percentage

No. Respondents
1 Less than five years 28 47%
2 More than five years 32 53%
Total 60
100%

CHART-5.4

Years In Nashik

Less than five

More than five years
years 47% Less than five years
53%
More than five years

Interpretation
From the table and graph above it can be seen that
 47% of respondents are in Nashik is less than years.
 53 % of respondents are in Nashik is more than years.

29
 CUSTOMER PROFILE OF SURVEYED RESPONDENTS

TABLE 5.5:

Customer profile No. of respondents

Student 7
Housewife 5
Working Professional 16
Business 9
Self Employed 14
Government service employee 9

Customer profile

Student
Self Employed 14%
27% Housewife Student
10%
Housewife

Business Working Working Professional

18% Professional Business
31%
Self Employed

Interpretation

From the table and graph above it can be seen that:-

27 % of the respondents are working professionals, 15% are into business and 23% are self-
employed, 15% of the respondents are government service employees and 12 % of the
respondent’s students and 8 % of the respondents are house-wife.

30
 ANNUAL HOUSEHOLD INCOME?

TABLE-5.6

Sr. Category No. of Percentage

No. Respondents
1 Less than 2 lacs 18 30%
2 Between 2 to 5 lacs 12 20%
3 Between 5to 8lacs 15 25%
4 More than 8 lacs 15 25%
Total 60 100%

ANNUAL HOUSEHOLD

More than 8 lacs

25% Less than 2 lacs
30%

Between 5to
8lacs Between 2 to 5
25% lacs
20%

Interpretation
From the table and graph above it can be seen that
30% of the respondent’s annual household income is less than 2 lacs.
20% of the respondent’s annual household income is between 2 to 5 lacs.

25% of the respondent’s annual household income is between 5 to 8 lacs.

25% of the respondent’s annual household income is more than 8 lacs.

31
 Do you know about AMBIT housing development finance corporation LTD?

TABLE 5.7:

Category No. of Respondents

Yes 52

No 08
Total 60

Category

No
13%
Yes
No

Yes
87%

Interpretation:-
From the table and graph above it can be seen that
 87 % of respondents are known about Mahindra Home Finance.
 13% of respondents are not known about Mahindra Home Finance..

32
 Reasons for getting the home financed

Sr.No. Number of Reasons Percenta

ge
a. Non-availability of funds 26
b. Reluctancy to pay cash in 15
one go
c. Tax benefit 14
d. Any other 5

Table 5 .8:-

Number of Reasons

Any other
8%
Tax benefit Non-availability of
23% funds Non-availability of funds
44%
Reluctancy to pay cash in one go
Reluctancy to pay Tax benefit
cash in one go Any other
25%

Interpretation:-
To interpret the response to the questions, the figures show that most of the
customers find the problem in the availability of funds i.e. 25%, and a very less number of
customers found a problem in paying cash in one go is 23%, customers get housing loan for
tax benefits. This was the expected response because a large number of people find a
problem with the f availability of funds which works as an obstacle to owning a dream
home.
In today's life, people hardly earn both means and ends of life and they don't have
much money to buy a home or an old to construct house because of the cost of the property.
So, they take the advantage of home loans provided by different banks at different terms
feasible to the customers. There is a very less number of people, who don't own a home
even when they have sufficient funds and they take the advantage of home loans because
they don't want to pay huge cash in one go.
Based on the study, it is concluded that most people lack money in fulfilling their
dreams and few of them were reluctant to pay cash in one go and wanted to pay their home
loans slowly in installments

33
 From where you have got your home financed

Name of Banks/company Percentage of

customers
Mahindra Home Finance. 25
Punjab National Bank 10
Standard Chartered Bank 02
ICICI BANK 15
Any other 08
Table 5 .9:-
To understand the response more effective and closely, it has been shown diagrammatically
as follows:-

Name of Banks/company

Any other
13%
AMBIT AMBIT
ICICI BANK 42% Punjab National Bank
25%
Standard Chartered Bank
Standard
Punjab National
Chartered Bank ICICI BANK
3% Bank
17% Any other

Interpretation:-
The analysis showed that a large number of customers prefer Mahindra Home
Finance.as compared to others. The data shows that 3% of customers took loans from
Standard Chartered Bank, 25% of customers from ICICI BANK, 17% of Customers took a
loan from Punjab National Bank, 42 % of customers took a loan from Mahindra Home
Finance. and a 13% of customers fall under the category of 'Any other' which included State
Bank of India, Canara Bank, Punjab and Sind Bank, etc.
The data shows that most people prefer Mahindra Home Finance. compared to
public sector banks and other private banks. This is because of the extra services provided
by Mahindra Home Finance.. However, there is less difference in figures of ICICI Bank and
Punjab National Bank. But there is a ca considerable difference in figures of the two private
sector banks i.e. ICIC Bank and Standard Chartered Bank. As ICICI is the market leader in
the home loans sector. This may be the reason for such difference in Standard Chartered
Bank's percentage and ICICI Bank's percentage. Another reason for specialized services in
home loans is more amounts of loans and efficient query handling.
However, the analysis showed that the people prefer Mahindra Home Finance.for a
home loans because of their services and excessive feat compared to other banks.

34
 Sources of information about the Home Loans Scheme

Sources of information Percentage of customers

Newspapers 29
Magazines 8

Banners/Hoardings/Pamphlets 5
Word of mouth 10
Any other source 06

Table-5.10

Sources of information

Any other source

10%
Word of mouth Newspapers
17% Newspapers
Banners/Hoarding Magazines
50%
s/Pamphlets Banners/Hoardings/Pamphlets
9%Magazines
Word of mouth
14%
Any other source

Interpretation:-

The data shows that around 17 % of customers got information from the source of 'Word of
Mouth' which includes information from friends, relatives, colleagues, etc. 50% of
customers got information from newspapers, only 14% of customers from magazines and
10% of customers got information about home loans schemes under 'Any other source' and
9% through Banners/ Hoardings/Pamphlets.

35
 PROBLEMS FACED BY CUSTOMERS IN AVAILING OF HOME LOANS

There are everything in the world has good or bad points. No doubt the banking
industry/ company has made many efforts to enhance customer satisfaction but the customer
still faced some problems. These are high lightened as below:

 The customer does not have proper knowledge about different home loan products so they
face problems in making a good deal.

 There are procedural delays, which harass the customer lot. This will crush the curtsy of
customers to avail of the home loan.

 The attitude of bank employees some times noncooperative and it creates a hurdle in
building trust and Confidence among customers about banks.

 The banks do not take into account the paying capacity of customers. So some customers
are not able to get the amount of loan needed them.

So above discussed are the problems faced by customers while availing of home loans

36
 CHAPTER 6

FINDINGS & RECOMMENDATIONS

37
 FINDINGS

1. Mahindra Home Finance.has a good brand image in the minds of customers.

2. Majority of the people got loans from Mahindra Home Finance.only
3. Most of the customers are not aware of the products of Mahindra Home Finance.home loans
4. Some of the customer’s felt that the interest rates are somewhat high
5. Some of the customers do not have good faith in private banks like Standard chartered
bank, HSBC bank, etc.
6. Most the people are directly going to Mahindra Home Finance.to apply for a home loan
7. Some of the customers of Mahindra Home Finance.already benefited through Mahindra
Home Finance.home loan products and services
8. Customer awareness is medium about Mahindra Home Finance.products.
9. Mahindra Home Finance.provides good services to their customers.

38
 RECOMMENDATIONS AND SUGGESTIONS

1) To increase its customers, Mahindra Home Finance.should provide specialized

services in this sector. These services can be such as proper guidance to the customer
regarding the processing of loans, especially for illiterate customers.

2) To satisfy their customers and for good dealings in the future, the Mahindra Home
Finance.should make prompt disbursement of the loan amount to the customers so that they
can buy or construct their dream home as early as possible.

3) The Mahindra Home Finance.should use an easy procedure, or say, the less lengthy
procedure for the sanctioning of loans to the customer. There should be fewer legal
formalities, in case this exists, then, these should be completed in less time. This will help
attract more customers.

4) Although the interest rates are on specific norms, customers seek fewer interest rates
which can lower the cost of the house. So banks should try to lower their interest rates.
Needless to say, the bank which is having lower interest rates has the maximum clients for
loans.

5) Mahindra Home Finance.provide loan according to the repaying capacity of the

customer and his/her eligibility. Due to this, some customers are not able to get the amount
of loan needed them. So, the Mahindra Home Finance.should soften its norms regarding the
loan amount.

6) Create awareness: The Company has to take care of awareness creation about the
products and services among the customers.

7) Charges: The Company has to reduce the mortality and administration charges.

8) The company has to reduce its interest rates on home loan products and services.

9) The company has to identify potential customers.

10) Company should consider the present competition and should act according to the
customer needs.

11) The Mahindra Home Finance.should try to provide proper knowledge regarding their
home loan schemes, even to people who don't know about such schemes and their benefits,
especially in rural areas. So they should provide knowledge to the ignorant customers,
especially in rural areas and backward urban areas So, above are the main suggestions
provided to the Mahindra Home Finance.. By considering these suggestions, Mahindra
Home Finance.can strengthen its customer base in the home loans sector. They should
improve their services and reduce legal proceedings and should be friendly to their
customers. All this will be helpful to satisfy their customers.

39
CHAPTER 6

CONCLUSION

40
 CONCLUSION

The home loan market in India has grown at a rapid and alarming rate of over 40% over the
last four years. And from the reports from some of the industry experts, it is evident that
there is very little chance that there will be any significant decline in growth rates in the
future. Therefore it becomes important at this point to examine the key factors that have
been instrumental in triggering this high growth period. Several reasons can be considered
to have attributed to the growth of the home loan market. On the demand side, the first and
the most important factor for the growth has been a faster rise in incomes as compared to
property prices, thus making housing more affordable.

Most of the housing finance companies in India have introduced several new home loan
products to meet the needs of a wide variety of customers. The various home loan schemes
have different interest rates in the market. The customer can choose those schemes which he
feels are good for him and have the capacity to repay within that specified period. If
unwavering liability is what suits your profile, then a fixed interest rate home loan should be
a natural choice. On the other hand, if you can handle risks and are willing to go the extra
mile to benefit from any further fall in interest rates, floating rate home loans will be best
suited for you.

41
 CHAPTER 9

BIBLIOGRAPHY /APPENDIX

42
REVIEWS

Berstain David(2008), “Home equity loans and private mortgage insurance: Recent Trends
& Potential Implications”, Vol.3 No.2, August 2008, Pp. 41 - 53
Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House Price”.Journal of
Housing Economics Vol. 4, No. 3, pp 27 – 34
Fanning (1982), “The Demand for Home Mortgage Debt” Journal of Urban Economics, Vol
11 No 2, November, pp. 770-774
Godse (1983), “looking afresh at banking productivity”, Journal of Real Estate Literature,
Vol. No. 13, Pages 141 to 164.
Haavio, Kauppi(2000), “Residential Lending to Low-Income and Minority Families:
Evidence from the 1992 HMDA Data," Federal Reserve Bulletin, Vol no 80(2), December
2000 Pp-79-108
Kulkarni (1979), “Development responsibility and profitability of banks” Journal of
Economic Perspectives, Vol 9 No 1, pp. 26-32.

NEWSPAPERS
The Times of India
Financial Express

WEB PAGES:-

http://www.hdfcindia.com/

http://www.hdfcindia.com/others/popup/news/hdfc_fin_result_june_30_08.html

www.hdfc.com

http://www.iloveindia.com/real-estate/housing-finance- companies/hdfc.html

http://www.loansnews.info/Home-loan/hdfc-home-loans/

http://www.hdfcindia.com/loans/hm-loan-documents.asp

http://www.thinkplaninvest.com/2009/01/hdfc-will-cut-home-loan-rates/

43
 ANNEXURES

1. Name:

2. Age:
(a) Below 30 (b) 30-40 (c) 40-50 (d) Above 50

3. Occupation:
(a) Professional (b) Self-employed
yed (c) Salaried
(e) Others

4. Which income group do you belong to? (Per annum)

(a) Below 2 lakhs (b) 2-4 lakhs
(c) 4-6 lakhs (d) 6 lakhs and above

5. Have you ever taken a Home loan before?

(a) Yes (b) No

6. If yes, from which Bank/company?

(a) ICICI (b) AMB IT (c) UTI
(d) Centurion Bank of Punjab (e) others

7. Are you Satisfied with the services provided? (on 5 point scale)

Highly dissatisfied Neutral satisfied

highly dissatisfied
dissatisfied

8. While taking a loan, which things attract you the most?

(a) Interest rates (b) Service Provider
ed
(c) Payback period (d) Schemes
(d) Others

9. Even if the Interest rate is high for the personal loans, you will go for it?
(a) Yes (b) No

44
10. How much loan amount do you take?
(a) Less than 1 lakhs (b) 1-5 lakhs
(c) 5-10 lakhs (d) more than 10 lakhs

11. Even if the Interest rate is high for the Home loans, you will go for it?
(a) Yes (b) N o

12. Do you own a home…?

Yes [ ] No [ ]
If Yes, then, Proceed………

13. Have you got it

financed? Yes [ ] No
[]
If Yes, then, proceed……..

14. What is the reason for getting it financed?

1. Nonavailabilityity of funds [ ]
2. Reluctance to pay cash in on go [ ]
3. Tax benefit [ ]
4. Any other (please specify) .........................................

15. From which of the following banks/companies you have got if

financed? Standard Chartered Bank [ ] State Bank of India [ ]
ICICI Bank [ ] AMBIT[ ]
Any other (please specify) ...........................................

16. From where have you got information about the home loans
scheme? (Checklist)…………………..
Newspapers [ ] Magazines [ ]
Hoarding/banners [ ] Word of mouth [ ]
Any other (please specify)...........................................

17. What problems did you face while getting home loans?
a. Lack of knowledge
b. Procedural delays and non cooperation
c. Any other (please specify) ........................................

18. Did you face any problems after the sanction of the loan?

45
19. What suggestions do you want to give for improvements in the home loans Scheme?

46