EXECUTIVE SUMMARY

Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and
above all gathering funds little by little to afford one’s dream. Home is one of the things that
everyone one wants to own. Home is a shelter to person where he rests and feel comfortable. Many
banks providing home loans whether commercial banks or financial institutions to the people who
want to had 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 bound in few years.Total home loans
disbursements by banks has risen which witnesses phenomenal growth from last 5 years. There
are greater number of borrowers of home loans.so by this study we can find out satisfaction level
of customers and problems faced by them in obtaining home loans.

My objectives of study are-

• To make comparative study of Disbursement of home loans by commercial banks.
• To study the satisfaction level of customers about home loans.
• To study the problems faced by customers in obtaining the home loans.
For this I had taken four commercial Banks in Dehradun city namely HDFC Bank, PNB, standard
chartered Bank, SBI. It includes two public sector banks and two private sector banks. The period
of study is five years commencing from 2004-2008.
In the research methodology I had taken both primary data as well as secondary data , in the
primary data I had make a questionnaire to check the satisfaction level of customers about home
loans . In the secondary data I had studied the annual reports of RBI, commercial banks &
broachers of these banks.
For the first objective I had collected the information about the number of account holders of
specified banks, no of disbursement of home loans and recovery of these loans.

After analysis I came to following findings

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

➢ Punjab National Bank is having large number of customer base with high loan disbursement
and recovery of loans.

➢ The standard chartered bank showed less outstanding balance which presented in percentage
form in the diagram.

In case of second objective i.e. customer satisfaction level it is found that

➢ On the basis of data the HDFC is emerging at higher position a Compare to Standard chartered
bank and other public sector banks on Ground of professionally managed services, reliable &
transparent System, easy query handling etc.

And problems face by customers in obtaining home loans are

• The customer does not had proper knowledge about different Home loan products so they
face problem in making a good deal.
• There are procedural delays, which harass the customers lot this will crush the curtsy of
customers to avail the home loan.
• The attitude of bank employees some times non cooperative 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 amount of Loan needed by them.

Finally the whole research was carried out in a systematic way to reach at exact results. The
whole research and findings were based on the objectives some of the limitation faced 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 the customers who are illiterate.
• To satisfy their customers and for good dealings in future, the banks should make prompt
disbursement of loan amount to the customers so that they can buy or construct their dream
home as early as possible.

• The Banks should use easy procedure, or say, less lengthy procedure for the sanctioning of
loan to the customer. There should be less number of legal formalities, in case this exists,
then, these should be completed in less time. This will be helpful in attracting more
customers.

• Although the interest rates on specific norms, yet customers seek less interest rate which
can lower their cost of house. So banks should try to lower their interest rates. Needles to
say, that the bank which 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.