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journal.unom.ac.in
V. Sudha**
Abstract
Home loans are an attractive and popular means of buying a dream house for most people. In India, the demand
for home loans has increased manifold in the last decade. The purpose of the study is to study the concept of Home
Loan /Housing Finance in todays scenario. The home loan market in India has grown at a rapid and alarming
rate of over 40% over the period of the last four years. The reports from one of the industry experts, reveals that it is
evident that there is very little chance that these will be any significant decline in growth rates in the future.
Therefore it becomes important at this point in time to examine the key factors that have been instrumental in
triggering this high growth period. These are several reasons that can be considered as having 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 faster rise in incomes as compared to property prices, thus making housing more affordable.
Key Words: Housing loan, Housing finance, Property prices, Income, Gross Domestic Product
INTRODUCTION
Home loans are an attractive and popular means of
buying a dream house for most people. In India, the
demand for home loans has increased manifold in the
last decade. Housing is a primary human need next in
importance to food and clothing. This takes
precedence over other household expenditure and
routine needs. Housing, however, is a major
expenditure and cannot be funded out of a familys
normal monthly income or savings. The prospective
house owner must look for a loan substantial in size
and so structured that he can repay it over a longer
period of time, in many cases almost ones entire
working life. Loan is offered to a borrower to purchase
or build a new house on the basis of his/her eligibility
and the banks lending rules. Government gave
encouragement for housing finance subsidiaries by
offering number of tax concessions to individuals and
with such overall encouragement given to this sector, a
IMPORTANCE OF HOUSING
Ever since human civilization evolved, human
settlement became a primary concern along with food
and clothing. Housing, in fact, laid the foundation for
human settlement and civilization.. Good housing is,
thus, a pre-requisite for human development and
welfare. It is essential for the smooth operation of a
modern society. Healthy and commodious living
provides incentives and generates efficiency, energy,
zeal and strength on which depends social, cultural
and economic prosperity.
34
REVIEW OF LITERATURE
Several studies have been done by various researchers
in the context of home loans. The details of reviews are
below.
Berstain David (2009) examined in his study taken
from 2001 to 2008 that in this period there is increasing
use of home loans as compared to private mortgage
insurance (PMI).
Vandell, Kerry D (2008) analyses the sharp rise and
then suddenly drop down home prices from the period
1998- 2008. Changes in prices are for the reasons as
such economic fundamentals , the problem was not
subprime lending per se, but the dramatic reductions
and subsequent increases in interest rates during the
35
and
V. Sudha
new heights announced that it will offer loans for Rs. 210 lakhs at 12.5 percent the lowest rate offered by any
housing finance provider, Narasimham Committee
(1991) points out that although the banking system has
made rapid progress during the last two decades, there
is decline in productivity and efficiency and erosion of
profitability. The committee strongly makes
indications of liberalizing, deregulating economy to
make the Indian banking system more competitive
and efficient.
Ojha (1987) in his paper "Modern International
Caparison of Productivity and Profitability of Public
Sector Banks of India" has made a comparison on the
basis of per employee indicators and taking cases of
State Bank group and Punjab National Bank noted that
Indian banks are the lowest in all accounts.
Godse (1983) observes that productivity aspect is only
at the Conceptualization stage in the banking industry.
He suggested improvement in productivity and
procedures, costing of operations and capital
expenditure etc.
Fanning (1982), while examining bank productivity of
British banks observed that although the productivity
of the UK clearing banks is improving, they are still
heavily over manned as compared with similar banks
elsewhere.
Kulkarni (1979) in his study Development
responsibility and profitability of banks stated that
while considering bank costs and profits, social
benefits arising out of it cannot be ignored. He
suggested that while meeting social responsibility
banks should try to make developmental business as
successful as possible.
Varde and Singh (1979) in a study "Profitability of
Commercial Banks" over 15 years gave consideration
to two types of factors that affects interest rates levels
i.e. internal factors (including operational and
managerial efficiency of individual basis). Banking
Commission (1972) reviewed bank operating methods
and procedures and made recommendations for
improving and modernizing these, particularly
relating to customer services, credit procedure and
36
RESEARCH METHODOLOGY
Objectives of the Study
For the purpose of the study the following objectives
have been identified:
1)
2)
3)
4)
HYPOTHESES
The Hypotheses that are tested in this study are as
follows:
1.
2.
3.
4.
5.
RESEARCH TOOL
Questionnaire is the research tool used in the study
and it consists of 5 prominent factors which influence
DATA ANALYSIS
The researcher used t-test, f-test and factor analysis by
Principle - Component method and KMO Bartletts test.
2.
3.
4.
5.
37
and
V. Sudha
EMI
Rate of interest.
Years of repayment.
Type of interest
Total charges
ANOVA
Sum of
Squares
Factors
EMI
Rate of interest
Year of repayment
Type of interest
Total charges
38
Between Groups
Mean
Square
.313
Within Groups
158.528
513
.309
Total
159.155
515
Between Groups
.627
df
.485
Within Groups
128.975
513
.251
Total
129.945
515
Between Groups
.970
.471
Within Groups
129.002
513
.251
Total
129.943
515
Between Groups
.941
3.380
Within Groups
154.775
513
Total
158.155
515
Between Groups
2.201
Within Groups
139.077
513
Total
141.278
515
1.690
Sig.
1.014
.363
1.930
.146
1.871
.155
5.602
.004
4.059
.018
.302
1.100
.271
DESCRIPTIVES
EMI
Rate of interest
Year of repayment
Type of interest
Total charges
Mean
Std. Deviation
4.2045
.48620
4.1357
.56681
4.2500
.57150
Total
4.1531
.55591
4.1429
.55522
4.2142
.49206
4.3490
.48334
Total
4.2119
.50231
4.1017
.47921
4.1896
.50668
4.2969
.48588
Total
4.1831
.50231
4.0519
.52930
4.1499
.55121
4.4375
.57150
Total
4.1531
.55416
3.9502
.58369
4.0586
.50590
4.2604
.54697
Total
4.0549
.52376
39
and
V. Sudha
ANOVA
Sum of
Squares
df
Mean
Square
Sig.
Between Groups
.858
.858
2.785
.096
Within Groups
158.297
514
.308
Total
159.155
515
Between Groups
1.184
1.184
4.728
.030
Within Groups
128.761
514
.251
Total
129.945
515
Between Groups
1.448
1.448
5.793
.016
Within Groups
128.495
514
.250
Total
129.943
515
Between Groups
.858
.858
2.802
.095
Within Groups
157.297
514
.306
Total
158.155
515
Between Groups
1.576
1.576
5.800
.016
Within Groups
139.701
514
.272
Total
141.278
515
Factors
EMI
Rate of interest
Year of repayment
Type of interest
Total charges
DESCRIPTIVES
EMI
Rate of interest
Year or repayment
Type of interest
40
Mean
Std. Deviation
4.1315
.55713
4.2301
.54705
Total
4.1531
.55591
4.1865
.51660
4.3024
.43788
Total
4.2119
.50231
4.1551
.49709
4.2832
.51025
Total
4.1831
.50231
4.1315
.55293
4.2301
.55415
Total charges
Total
4.1531
.55416
4.0256
.53424
4.1593
.47213
Total
4.0549
.52376
REFERENCES
1.
2.
3.
S.Rajalakshmi,Assistant Professor of
commerce,&Mrs.C.PappeswariAssistant
Professor of Commerce, Govindammal Aditanar
college for women, Tiruchendur, Thoothukodi
Tamilnadu
4.
5.
41
journal.unom.ac.in
Abstract
Working capital plays a key role in a business enterprise just as the role of heart in human body. Working capital
acts as grease to run the wheels of fixed assets. Its effective provision can ensure the success of a business while its
inefficient management can lead not only to loss but also to the ultimate downfall of what otherwise might be
considered as a promising concern. . There is a positive trend in the CCSFL in current assets, current liabilities
and net working capital during the period leaving 2004 and 2005. Between the CCSFL and the PSCL, the trend
in net working capital is positive in the former while negative in the latter. It means the net working capital has
declined in subsequent years over the base year in the PSCL. A contrary situation emerges in the CCSFL.
Key Words: Working Capital, Structure, Size, Trend analysis, Liquidity
INTRODUCTION
Working capital plays a key role in a business
enterprise just as the role of heart in human body.
Working capital acts as grease to run the wheels of
fixed assets. Its effective provision can ensure the
success of a business while its inefficient management
can lead not only to loss but also to the ultimate
downfall of what otherwise might be considered as a
promising concern. Thus the efficiency of a business
enterprise depends largely on its ability to manage its
working capital. It is one of the important facets of
overall financial management of a firm. Therefore,
management of working capital is analysed in terms of
size, structure and trend. For this purpose, two sugar
factories are selected to analyse meaningfully and
compare aptly. At the end of 2012, there were 6 sugar
factories in Chittoor district. Out of these, 2 are in the
cooperative sector and the remaining, 4 in the private
SIZE:
The size of working capital implies total current assets.
The term, gross working capital, is most important
from the point of view of financing of working capital.
On the other hand, the networking capital concept is
most significant from the liquidity point of view.
Therefore, gross and net working capitals of select
sugar mills are analyzed. The gross working capital in
the CCSFL has increased from Rs. 2907.89 lakhs in 2003
to Rs. 7192.26 lakhs in 2012(see Table 1). On an
average, per year,
42