‘‘HOME LOAN SCHEME OF PRIVATE AND PUBLIC SECTOR

BANK’’

A Project Submitted to

University of Mumbai for partial

completion of the degree of Master of

Commerce (Banking &

Finance) Under the Faculty of

Commerce

BY

JAY DAMANI

ROLL NO- 11

UNDER THE GUIDANCE OF

ASSISTANT PROF. SHEETAL MODY

K.P.B. HINDUJA COLLEGE OF COMMERCE

CHARNI ROAD, MUMBAI – 400004

FEBRUARY 2023

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 CERTIFICATE

This is to certify that Mr. JAY DAMANI has worked and duly completed his Project Work
for the degree of Master in Commerce (Banking & Finance) under the Faculty of
Commerce and his project is entitled,‘‘HOME LOAN SCHEME OF PRIVATE AND PUBLIC
SECTOR BANK” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

Co-Ordinator Guiding Teacher

External Examiner Internal Examiner

Principal College seal Date of submission

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 DECLARATION
I the undersigned Mr. JAY DAMANI here by, declare that the work embodied in this project
work titled “HOME LOAN SCHEME OF PRIVATE AND PUBLIC SECTOR BANK” forms my
own contribution to the research work carried out under the guidance of ASSISTANT PROF.
SHEETAL MODY is a result of my own research work and has not been previously submitted
to any other University for any other Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

JAY DAMANI
ROLL NO. 11

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 Acknowledgemen
t
To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimension in the completion of this project.
I take this opportunity to thank the University of Mumbai for
giving me chance to do the project.
I would like to thank my Principal, (DR.) Minu Madlani for
providing the necessary facilities requires for completion of this
project.
I would take this opportunity to thank our Coordinator Dr. Rashmi
Maurya, for his moral support and guidance
I would also like to express my sincere gratitude towards project
guide Prof. Sheetal Mody whose guidance and care made the
project successful.
I would like to thank you my College Library, for having provided
various reference books and magazine related to my project.
Lastly, I would like to thank each and every person who directly
helped me in the completion of the project especially my Parents
and Peers who supported me throughout my project.

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SR.NO TOPIC PAGE
NO
1 INTRODUCTION
6-14

2 15-54
REVIEW OF LITERATURE

55-72
DATA ANALYSIS AND INTERPRETATION
3

4 73-77
FINDING, SUGGESTION & CONCLUSION

78-80
5 BIBILIOGRAPHY

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 CHAPTER – 1

INTRODUCTION

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1.1 INTRODUCTION:

Housing is a primary human need next in importance only to food and clothing. A
first priority for a youngster who begins life is therefore to plan for a house. This takes
precedence over other household expenditure and creature needs. Housing, however,
is a major expenditure and cannot be funded out of a family's normal monthly income
or savings. The prospective homeowner 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 one's
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 bank's lending rules. One of the important basic human needs is
shelter.

House is the ultimate dream of every middle class family. Government gave
encouragement for house finance subsidiaries by offering number of tax concessions
to individuals. With the overall encouragement given to this sector, a number of
players entered in housing finance.

One of the most important benefits of taking a home loan is the interest rate that is allowed
on the home loan. Fixed and variable interest rate options are also available for home loans.
Many financiers also offer home improvement loans at the same interest rate as they offer
the home loans.
A sum of money borrowed from a financial institution or bank to purchase a house.
Home loans consist of an adjustable or fixed interest rate and payment terms.

In the recent years the demand of home loans has increased dramatically. Part of the
reason for this increase is because of accessibility of loans has gotten bigger. Today
home loans are available in the market at very low and good rates that meet the
demands of many home buyers. A home represents the largest asset that typically
people have and this is why home loans have such a huge impact in the loan market
today. When a person purchases a home he or she will be investing a huge amount of
cash. Many people can’t come up with the whole money to pay out to the house,
while some others can’t even afford to invest money for the house they will like to
purchase in part this is how home loans have turned out to be a benefit for people who
want to buy the home of their choice but cannot afford it at the time.

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 Now day’s home buyers don’t have to worry much about the source of money for their
homes. Home loans have made the life of many house buyers much easier. But house
buyers should be very careful when choosing a home loan. Before doing anything else
Borrows should make a thorough research of the current interest rates in the market and
then opt or go for any home loan. Buyers could even go for home loans by mortgage. This
way the borrowers can get a loan after pledging or securing any asset or securities of their
own against amount of money barrowed by them.
When getting a home loan the individuals should consider taking care of different
aspects related to the home loan. An individual should be very careful when deciding
the principal amount of the home loan being borrowed or else the person may end up
with a very high principal amount and then he or she will have to pay more interest
for the money being borrowed unreasonable.

SCHEMES OF HOME LOANS:

1) Home Loans for Construction of New House / Flat, Purchase of Old House/ Flat, etc.

Initially, lenders approved a home loan for family/owner residence only.

After gaining experience and more importantly to be competitive, lenders now
approve loans even when the applicant has more than one house or flat/apartment.
Today there is no general restriction on the number of houses owned by an individual.
The only stipulation is that the home loan funds should not be used for commercial
purposes.

2) Home Extension Loan: These loans are given for expanding or extending an
existing home. These are some of the instances for which you could take an Extension
Loan.

• To construct an additional room or floor by getting additional FSI granted.

• Using grills or sliding windows to enclose the balcony.
• Construction of a garden or garage in the building vicinity.

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3) Home improvement Loan: Home improvement loans for repairs /renovation
including waterproof, plumbing, compound wall, digging of well/tube-well,
flooring/tiling, additions like built-in cupboards/shelves,.etc. A loan for purchase of
household furniture including space-saving furniture (kitchen racks, cupboards, etc.) may
also be sanctioned as a home improvement loan.

4) Home loan for purchase of housing site: Here again, initially many banks
did not approve such loans. However, market forces have now made this a universal
feature of the home loan market. However, care has been taken in structuring the
schemes for avoiding financing for purchase of land for speculative lotion purposes.

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 1.2. Concept and Definition

1) Margin

When you take a loan, the home loan company will not put up the entire amount. It
will onlyput up around 80% to 90% of the cost of your home.
You will have to put in the balance 20% or 10%.
Even if they go up to 95%, you will still have to put in the balance 5%. This amount is

2) Resale
This is the term used when you are buying a home from someone who already owns it
and is selling it. Hence it is referred to as a resale It indicates you are not buying a
brand new home straight from the builder or buying one currently under construction.

3) Credit appraisal

The home loan company will take a look at a number of parameters before a loan is
sanctioned. Your savings, income, age, qualifications, nature of work and work
experience are some of them. They will also look into how many loans you are
currently servicing.
Taking all these issues into account, they will determine whether or not you are
eligible for a loan and what the sanctioned amount should be. This process is known
as a credit appraisal.

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4) Pre-approved property
Many builders get their properties pre-approved by home finance companies.
Generally, if a builder gets pre-approved by a number of players, it speaks well of the
builder.

The home finance company will examine all the legal documentation and approvals.
If everything is in order, the builder will get a stamp of approval. Also, the home loan
player will view the builder's ability and track record to complete the construction in
time.

However, this does not mean the home finance company is going to take any action or
waive any charges if the construction is delayed.

All it means is that the property falls within the legal purview and the builder has a
good track record.

5) Equated Monthly Installments

An EMI is the amount of money you will have to pay every month in order to repay

your loan. An EMI is an unequal combination of your loan amount (principal) and the

rate of interest.

The EMI remains constant throughout the repayment period. Let's say you have a
five- year loan with an EMI of Rs. 4,400. You will have to pay this amount for the
next 60 months to the home loan company.

To arrive at the EMI, the home loan financier will look at

 The principal (the actual loan amount).

 The repayment period (the number of years you will take to repay the loan).
 The rate of interest.
 How the rate of interest is computed (monthly reducing, quarterly reducing or annual
reducing basis).

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6) Disbursement
Full disbursement: A full disbursement is when the entire cost is paid at one go; the
home loan company hands over the entire payment to the seller.

The cheque is disbursed (it is never in cash) only when you have submitted all the
documents required and have made the down payment.

If this is a resale, then the cheque is made out in the seller's name.
If you are purchasing your home from a builder, then it is in the builder's name.
Partial disbursement
A partial disbursement is made in stages (not at one go as in the case of full
disbursement).
When purchasing an apartment from a builder and it is under construction, the home
loan company will not release all the payment at one go. The money will be released
in stages. For instance, after the completion of the first floor, 20% of the payment will
be made. Afterthe completion of the last floor, 40% and so on and so forth. Hence
payment is construction linked and disbursed accordingly.

7) Advance Disbursement Facility

If the house is still under construction, then a partial disbursement is made. However,
in some cases, the home loan company may be willing to make the entire payment
even if the construction is not complete. This is known as an advance disbursement
and will occur only in both these instances:

I. If the buyer requests the home loan company to do so.

II. If the home loan company is fairly convinced the builder will complete the
construction on time.

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8) Pre-EMI

When you buy a home that is under construction, the home loan company will not pay
the entire amount to the builder. Payment will be made in stages. As construction is
completed, payment is released. This is known as partial disbursement.
You start paying your EMIs only after the final disbursement. Till then you pay the home
loan company a rate of interest on the amount partially disbursed. This interest is called
pre-EMI.
If your home loan is going to cost you 8%, you will be charged 8% simple interest on
payments made till date. This will go on till the final payment (disbursement) is made and
your EMIs start.
So the longer your builder takes to complete construction, the more you end up paying.

9) Offer Letter

Once the loan is sanctioned, you will get an offer letter stating a number of details.

 Loan amount
 Rate of interest
 Fixed/ flexible rate of interest
 Tenure of the loan
 EMI amount
 If offered under a special scheme, details of the scheme
 Any other conditions of the loan

This letter does not mean the loan is yours. It only means the home loan company has
agreed to consider you as one of its customers. It will then look into the various
property and legal documents as well as value the property you are buying. The loan
will only be disbursed once these formalities are complete.

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10) PDCs

Post-dated cheque are dated ahead of time and cannot be processed till the date
indicated. Generally, the home loan company will ask for a year's supply of cheque or
maybe even two or three years. At the end, you will have to replenish the supply for
the following years. These cheque will be addressed to the home loan company,
signed by you and will state the exact EMI to be paid.

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 CHAPTER-02

REVIEW OF LITERATURE

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 2.1. STATEMENT OF PROBLEMS

The section 5 (b) of the Banking Regulation Act 1949 defines Banking as," Accepting
for the purpose of lending or investment of deposits of money from the public,
repayable on demand or otherwise and withdraw able by cheque, draft or otherwise."

A "home loan" is a credit to a consumer for the purchase or transformation of the

private immovable property he owns or aims to acquire secured either by a mortgage
on immovable property or by a suretycommonly used in a Member State for that
purpose."

A home loan requires you to pledge your home as the lender's security for repayment
of your loan. The lender agrees to hold the title or deed to your property until you
have paid back your loan plus interest. In simple words a home loan is a fund or the
loan which the buyer has taken from any financial institution or bank to purchase a
new home at an agreed rate of interest specified during the contract.

Home loan is the finance borrowed from a bank or financial institution to buy or
modify a residential real estate property. Any Resident or Non-resident individual who
is planning to buyer house in India can apply for a Home loan. If you have decided to
buy a property in the near future you can even apply for a loan before you select your
property.

2.2 OBJECTIVES OF THE STUDY

 To evaluate the cost of home loans provided by the bank.

 To know that which bank provide batter loan schemes.
 To know the consumer perception about the home loan Public sector Banks and
Private sectors Banks.
 To Compare Different types of home loan provided by Banks.
 To study various rates available while providing home loan

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 2.3. HYPOTHESES OF THE STUDY:

Ho There is no significant between the home loan schemes of various banks

H1 There is significant between the home loan schemes of various banks

Ho There is no significant difference in the consumer’s perception about the

home loan between Public sector Banks and Private sectors Banks.

H1 There is a significant difference in the consumer’s perception about the

home loan between Public sector Banks and Private sectors Banks.

2.4 METHODOLOGY OF THE STUDY:

The Universe – Public sector banks are those where majority of the stake in the bank
is held by government. Where as in private sector bank, majority is held by
shareholders of the bank

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PUBLIC SECTOR BANKS

SR NO BANK TAGLINE HEADQUATERS

1 Allahabad Bank A tradition of trust Kolkata

2 Andhra Bank Much more to do, with you Hyderabad

3 Bank of Baroda India’s international bank Vadodara

4 Bank of India Relationships beyond Mumbai

banking

5 Bank of One family one bank Pune

Maharashtra

6 BMB (Bharaitya Empowering Women Delhi

Mahilla Bank) Empowering India

7 Canara Bank Together We Can Bangalore

8 Central Bank of Build A Better Life Around

India Us Mumbai

9 Corporation Bank Prosperity for All Bangalore

10 Trusted Family Bank Mumbai

Dena Bank

11 IDBI Bank Ltd Banking for All Mumbai

12 Indian Bank Taking banking technology to

the common man Chennai

13 Indian Overseas Good people to grow with

Bank Chennai
OBC (Oriental
14 Bank of Where every individual is Delhi
Commerce) committed

15 Punjab & Sind Where service is a way of life Delhi

Bank

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16 Punjab National
A Name you can Bank Upon Delhi
Bank

17 State Bank of India With you All the Way Mumbai

18 State Bank of ----------------------------- Jaipur

Bikaner & Jaipur

19 State Bank of
You can always bank on us Hyderabad
Hyderabad

20 State Bank of Working for a better

Bangalore
Mysore tomorrow

21 Blending Modernity
State Bank of Patiala
with Tradition
Patiala

22 State Bank of A Long Tradition of Trust Trivandrum

Travancore

23 Syndicate bank Your faithful & Manipal

friendly financial
partner

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 2.5 SELECTION OF THE SAMPLE:

PUBLIC SECTORS BANKS:

 State Bank of India

 Bank of Maharashtra

PRIVATE SECTORS BANKS:

 ICICI Bank (Industrial Credit and Investment Corporation of India)

 Axis Bank

a. DESIGN OF RESEARCH:

The research will be exploratory in nature. A population of peoples who take home loan from
these banks will be considered for this study. I will try to explore about the home loans which
would make a difference in the behavior of the consumer. Effort will be made to throw light
on most of the factors which have either indirect or direct effect on the behavior of the
consumer. I will also explore the impact of home loans on the market share of the banks.

b. SAMPLING PLAN:

Population: The study aimed to include the customers of Public sector Banks and
Private sectors Banks in Mumbai Suburban, to make a comparative analysis of home
loan schemes of these Public sector Banks and Private sectors Banks.

Sample Size: A Sample size of 50 respondents will be taken for the current study
because it is not possible to cover the whole universe in the available time period. So
it is necessary to take the sample size. In 50 respondents of each Banks. The samples
will the peoples of age group lying between eighteen to thirty years. The sample will
be taken in the form of strata based on age, sex, and income group.

2
Sampling technique: The sampling technique will be probabilistic sampling more
specifically the random convenient and judgmental sampling will be used. As in
probabilistic sampling the select unit for observation with known probabilities so that
statistically sound assumptions are supported from the sample to entire population so
that we had positive probability of being selected into the sample. I will go for
stratified random sampling as we are interested to study the home loan by Public
sector Banks and Private sectors Banks, so we will make the strata on the basis of age,
occupation, income level, gender.

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c. SOURCES OF DATA

I will use primary source of data that is structured questionnaire. As these banks are
established from so many years, so many researchers have done research on this topic,
so we will find secondary data also and also use this data for the help of this research.
So, this research data will collected from the primary source and secondary source.
Our method of collecting the data is from the questionnaire that will be filled by the
respondent from the sample, it will be structured questionnaire.

Tools for Data Collection:

Questionnaire Interview

Tools Data Analysis: As no study could be successfully completed without proper

tools & techniques, same with my project. For the better presentation and right
explanation I used tools of statistics and computer very frequently and I am very
thankful to all those tools for helping me a lot. Basic tools which I used for project are:
i. BAR CHARTS

ii. TABLES

Bar charts and pie charts are very useful tools for every research to show the result in a
clear, simple way. Because I used bar charts and pie charts in my project for showing
data in a systematic way. So I need not necessary for any observer to read all the
theoretical detail, simple on seeing the charts anybody that what is being said.

2.6 SCOPE OF THE STUDY

 This study is analysis and comparison of home loans provided by the Public sector
Banks and Private sectors Banks. It is helpful in analyzing the home loan service
provided to the customer and their comparison.
 The most attractive features that attracted the clients to avail loan from banks
 The customer’s satisfaction regarding various home loan services offered at banks.
 The preferred mode of repayment of customers with regarding their loan availed from
banks.

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 2.7 LIMITATIONS OF THE STUDY:

Although best of the efforts were made to conduct a prefect survey but still it faces
certain limitation. Following were certain limitation of this project.

1. The survey was conducted only on 50 respondents each bank.

2. Some of the respondents did not answer all the questions, which could hamper the
final results to a certain extent.

3. The study confines itself to the respondents of “MIRA BHAYANDER” region only.
Hence findings would not be relevant to other cities.

4. Some of the respondents of the survey were unwilling to share information

5. The information given by the respondents might be biased because some of them
might not be interested in providing correct information

6. The officials of the bank supported us a lot but did not have sufficient time to clear all
the points elaborately.

7. The research was carried out in a short period of time so. Therefore the sample size
and other parameters were selected accordingly so as to finish the work given time
frame.

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1. In December 2006 Fulbag Singh and Reema Sharma had studied about the
housing Finance in India. Housing, as one of the three basic needs of life, always
remains on the top priority of any person, economy, government and society at large.
In India, majority of the population lives in slums and shabby shelters in rural areas.
From the last decade, the Government of India has been continuously trying to
strengthen the housing sector by introducing various housing loan schemes for rural
and urban population. The first attempt in this regard was the National Housing
Policy(NHP), which was introduced in 1988.The National Housing Bank (NHB) was
set up in 1988 as an apex institution for housing finance and a wholly-owned
subsidiary of Reserve Bank of India (RBI). The main objective of the bank is to
promote and establishthe housing financial institutions in the country as well as to
provide refinance facilitiesto housing finance corporations and scheduled commercial
banks. Moreover, for the salaried section, the tax rebates on housing loans have been
introduced. The paper is based on the case study of LIC Housing Finance Ltd., which
analyzes region-wise disbursements of individual house loans, their portfolio mounts
and the defaults for the last ten years, i.e., from 1995-96 to 2004-05by working out
relevant ratios in terms of percentages and the compound annual growth rates. A
relevant chart has also been prepared to highlight the results.

2. In 1999 Yoko Moriizumi had studied about the Current Wealth, Housing
Purchase and Private Housing Loan Demand in Japan. Japanese households
accumulate wealth for down payments at a high rate. Therefore, current wealth plays
an important role in home acquisition as public loans whose direct mortgage lending
is a strong support for home purchasers. We estimate the wealth effect on private
mortgage debt as well as housing consumption by applying a model where mortgage
debt demand is derived from house purchase decisions and is determined jointly with
housing consumption. We use a simultaneous equation to bit estimation method.
Wealth effects on private mortgage debt, likelihood of borrowing, and housing
consumption are not elastic. On the other hand, a change in housing consumption
affects the likelihood of borrowing elastically much more than the private mortgage
amount of borrowers. Housing and private mortgage markets fluctuate very closely
with the number of participants in the mortgage market. Therefore, the number of
housing starts is linked strongly to the private mortgage market.
2
3. Sumit Agarwal, Souphala Chomsiseng petard John C. Driscoll had studied
about the Loan commitments and private firms. They studied that, most loans are in
the form of credit lines. Empirical studies of line demand have been complicated by
their use of data on publicly traded firms, which have a wide menu of financing
options. We avoid this problem by using a unique proprietary data set from a large
financial institution of loan commitments made to 712 privately-held firms. We test
Martin and Santomero's (1997) model, in which lines give firms the speed and
flexibility to pursue investment opportunities. Our findings are consistent with their
predictions. Firms facing higher rates and fees have smaller credit lines. Firms with
higher growth commit to larger lines of credit and have a higher rate of line
utilization. Firms experiencing more uncertainty in their funding needs commit to
smaller credit lines. Almost all firms convert unused credit line portions into spot
loans and take out new lines.

4. FaikKoray and Eric T. Hillebrand had studied about the Interest Rate
Volatility and Home Mortgage Loans. They studied that The U.S. economy has
experienced substantial fluctuations in real and nominal interest rates since the 1970s.
This paper investigates empirically the relationship between home mortgage loans and
volatility in mortgage rates for the period 1971:02 through 2003:03.Contrary to
common wisdom, we find a positive relationship between mortgage rate volatility and
home mortgage loans. Further investigation indicates that this is due to volatility in
the bond market. In times of high interest volatility, households disinvest in
government securities and invest in real assets, which yield a positive relationship
between mortgage rate volatility and home mortgage loans.11) In nov 2000 Michelle
J. White and Emily Y. Lin had studied about the Bankruptcy and the Market for
Mortgage and Home Improvement Loans. They studied that this paper investigates the
relationship between bankruptcy exemptions and the availability of credit for
mortgage and home improvement loans. We develop a combined model of debtors'
decisions to file for bankruptcy and to default ontheir mortgages and show that the
theorypredicts positive relationships between both the homestead and personal
property exemption levels and the probability of borrowers being denied
mortgage(secured) and home improvement loans. We test these predictions
empirically and find strong and statistically significant support when evidence from
cross- state variation in bankruptcy exemption levels is used.
Applicants for mortgages are 2 percentage points more likely to be turned down for
mortgages and 5 percentage points more likely to be turned down for home
improvement loans if they live in states with unlimited rather than low homestead
exemptions. These relationships also hold when we introduce state fixed effects into
the model.

5. In October 14, 2008 David P. Bernstein had studied about the Home Equity
Loans and Private Mortgage Insurance: Recent Trends & Potential Implications. They
studied about the impact of increased use of home equity lines and decreased Private
mortgage insurance (PMI) on mortgage markets. The data confirms that in the years
leading up to the mortgage crisis home buyers and lenders have aggressively used
piggyback loans to avoid taking out PMI on first mortgages. Multiple- mortgage
financing packages as a percent of newly originated mortgages (mortgages originated
within the previous five years) went from 14.8% in survey year 2001 to21.5% in
survey year 2007. The multiple-mortgage percentage for seasoned mortgages
(mortgages originated more than five years prior to the origination date) also increased
by a modest amount. Further comparisons reveal a large decrease in the proportion of
mortgages with PMI with the largest decreases in PMI coverage occurring among
newly originated multiple-lien packages. Data from the SCF was used to compare five
financial characteristics (credit card debt, installment loans, consumer credit, home-
owners equity, and liquid assets) for multiple-lien versus single-lien households. The
comparisons suggest single-lien households tend to have slightly stronger financial
variables than multiple-lien households. The data does not support the view that
homeowners with multiple liens are less risky and should therefore be allowed to
avoid PMI. The reduced use of PMI and the increased use of home equity loans
increased mortgage holder risk in several different ways and was a contributing factor
to the 2008 mortgage and financial crisis. This change in lending and borrowing
behavior is not a subprime market problem.
6. Peter Malpass (1 991) depicts the need for housing finance. Housing IS
unavoidably, expensive to produce. In order to build houses, a builder brings together
land, labour and materials often using borrowed money to finance. He continues his
argument by making a distinction between development finance and consumption
finance. The former refers to the money which is needed to pay for the initial
construction of housing whereas the latter refers to the ways in which the households
meet the cost of buying or renting. What consumers need is some method of spreading
the cost of housing over a long period, thereby reducing the cost to an affordable
proportion of regular income.

In Aug 2007 Michael LaCour-Little had studied about the Home Purchase
Mortgage Preferences of Low- and Moderate-Income Households. Housing policy
in the United States has long supported homeownership, yet variation persists
across income groups. This article employs recent mortgage origination data to
focus on the revealed preferences of low- and moderate-income (LMI) households
in home purchase mortgage choice. I identify the factors associated with
conventional conforming, FHA, nonprime and specially targeted programs.
Empirical results show that individual credit characteristics and financial factors,
including pricing, generally drive product choice, with some variation evident
when loans are originated through brokers. Results also indicate that targeted
conventional programs effectively compete with government-insured products in
the LMI segment.14) in 24 Oct 2008 David C. Wheelock had studied about the
Government Response to Home Mortgage Distress: Lessons from the Great. They
studied about the Great Depression was the worst macroeconomic collapse in U.S.
history. Sharp declines in household income and real estate values resulted in
soaring mortgage delinquency rates. According to one estimate, as of January1,
1934, fully one-half of U.S. home mortgages were delinquent and, on average,
some 1000 home loans were foreclosed every business day. This paper documents
the increase in residential mortgage distress during the Depression, and discusses
actions taken by state governments and the federal government to reduce
mortgage foreclosures and restore the functioning of the mortgage market.
 Many states imposed moratoria on both farm and nonfarm residential mortgage
foreclosures. Although moratoria reduced farm foreclosure rates in the short run, they
appear to have also reduced the supply of loans and made credit more expensive for
subsequent borrowers. The federal government took a number of steps to relieve
residential mortgage distress and to promote the recovery and growth of the national
mortgage market. The Home Owners Loan Corporation (HOLC) was created in 1933
to purchase and refinance delinquent home loans as long-term, amortizing mortgages.
Between 1933 and 1936, the HOLC acquired and refinanced one million delinquent
loans totaling $3.1 billion. The HOLC refinanced loans on some 10 percent of all non-
farms, owner-occupied dwellings in the United States, and about 20 percent of those
with an outstanding mortgage. The Great Depression experience suggests how
foreclosures might be reduced during the present crisis.

7. According to Deepak Razdam (1990) the sources of informal savings are seen to be
cash and bank deposits, assets like Jewellery, loans from friends and relatives and to a
small portion of funds from money lenders. The government plans to bring about
appropriate changes in the approaches of the existing financial institutions so as to
make them more responsive and accessible to households.

8. Pravin Singh of Mumbai writes in the Financial Express about the reduction of
Interest rate by the HDFC by 1% in order to encourage NRls to Invest in the Indian
real estate. NRls especially from West Asia and the U.S have shown interest in real
estate in India due to low propertyprices.

9. Aaron Chaze in his article on HDFC in the Financial Express states that while HDFC
has reported a growth in business volumes, it does very little to inspire stock market.
In his opinion the effect of lower lending rates have beer) absorbed and interest
spreads have begun to improve.

10. Abha Lakshmi and AtiquirRahman in their study on housing and health in
the low income households in the Aligarh city are of the opinion that income
determines the man's way of living, his housing conditions, his food habits and his
local residence. A proper housing is the basic need to attain good quality of life.
11. P. Muthuram (1999) is of the opinion that housing finance, particularly retail
housing finance of late is acquiring great importance because of government's
incentives and stability in prices. All the banks and institutions are plunging to have
their own share in this sector. The finance Act of 1999- 2000 has given greater thrust
to housing and house financing activities. Housing finance offers safe, secured,
profitable and diversified asset portfolio.

12. Vijay Bhole in her research thesis cites that the economic factors seem to
have placed severe impediments in the house building activity. Among the most
important economic factors rising land value seems to be major constraints in house
building activity. She mentions that taking advantage of the wide gap between
demand and supply of urban land; the speculators are operating in the metropolitan
area in a very unscrupulous manner for earning money.

13. Leland and Leo Grebler (1977) in their decision on Government schemes on
housing state that the housing boards and development authorities though are the only
responsible authorities to care for the housing, unfortunately they are found to be
exploiting the common man by creating deliberately a dearth for housing by building
their monopoly and doing extensive publicity and ultimately not responding to the
housing needs of the society.

14. Keith and John (1980) bring in a new picture of housing problems. They say
those public housing policies of one sort or another are obviously of great importance
in advanced capitalist systems. Explaining the general role of the state and linking this
to its specific role in housing markets is a crucial problem for Marxist theory. The
sprawling growth of suburban housing estates around major cities has been one of the
most striking aspects of post war urban development in the United States.
 I .PUBLIC SECTOR BANKS

01.State Bank of India

The roots of the State Bank of India lie in the first decade of the 19th century, when
the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June
1806. The Bank of Bengal was one of three Presidency banks, the other two being the
Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras
(incorporated on 1 July 1843). All three Presidency banks were [as joint stock
companies and were the result of royal charters. These three banks received the
exclusive right to issue paper currency till 1861 when, with the Paper Currency Act,
the right was taken over by the Government of India. The Presidency banks
amalgamated on 27 January 1921, and the re-organized banking entity took as its
name Imperial Bank of India. The Imperial Bank of India remained a joint stock
company but without Government participation

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial
Bank of India. On 1 July 1955, the imperial Bank of India became the State Bank of
India. In 2008, the Government of India acquired the Reserve Bank of India's stake in
SBI so as to remove any conflict of interest because the RBI is the country's banking
regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This
made SBI subsidiaries of eight that had belonged to princely states prior to their
nationalization and operational take-over between September 1959 and October 1960,
which made eight state banks associates of SBI. This acquisition was in tune with the
first Five Year Plan, which prioritized the development of rural India. The
government integrated these banks into the State Bank of India system to expand its
rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and State Bank of
Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI
acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years
later, in 1975, SBI acquired KrishnaramBaldeo Bank, which had been established in
1916 in Gwalior State, under the patronage of Maharaja MadhoRao. The bank had
been the DukanPichadi, a small moneylender, owned by the Maharaja. The new
bank's first manager was Jell N. Broacha, a Paris. In 1985, SBI acquired the Bank of
Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the
State Bank of Travancore, already had an extensive network in Kerala.

There has been a proposal to merge all the associate banks into SBI to create a "mega
bank" and streamline the group's operations.

The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven
to six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of
Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares
prior to its takeover by the government hold the balance of 1.7 %.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network
of branches. Also, following the acquisition, SBI's total assets will inch very close to
the 10 trillion marks (10 billion long scales). The total assets of SBI and the State
Bank of Indore stood at 9,981,190 million as of March 2009. The process of merging
of State Bank of Indore was completed by April 2010, and the SBI Indore branches
started functioning as SBI branches on 26 August 2010.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank Existing Home Loan borrowers can opt for switch over to
current rate of interest on Home Loans by paying 0.50 % + applicable Service Tax of
the outstanding

WELCOME to SBI Home Loans “THE MOST PREFERRED HOME LOAN

PROVIDER" voted
in AWAAZ Consumer Awards along with the MOST PREFERRED BANK AWARD
in a survey conducted by TV 18 in association with AC Nielsen-ORG Marge in 21
cities across India
 BANKS PROFILE:

SBI Home Loans Unique Advantage:

 Low Processing Charges

 Package of exclusive benefits.

 Low interest rates. Further, we charge interest on a daily reducing balance!!

 No hidden costs or administrative charges.

 No prepayment penalties. Reduce your interest burden and optimally utilize your
surplus funds by prepaying the loan.

 Over 15,969 branches nationwide, you can get your Home Loan account parked at a
branch nearest to your present or proposed residence.

HOME LOANS - INTEREST RATES With effect from 01.08.2016

(MCLR: 9.10%)

Borrowers' Home Loan interest EMI per Maxgain above Maxgain above CRE Maxgain,
rate, irrespective of Lac for 30 Rs. 20 lacs&up irrespective of
category Rs. 1 crore
loan limit year Tenor To Rs. 1 crore loan limit
55 bps above
20 bps above the 30 bps above the MCLR i.e. 75 bps above the
Women Rs. 826 the
MCLR i.e. 9.30% MCLR i.e. 9.65% p.a. MCLR i.e.
9.85%
p.a 9.40% p.a. p.a.
25 bps above the 35 bps above 60 bps above 80 bps above the
the
Others MCLR i.e. 9.35% Rs. 830 MCLR i.e. the MCLR i.e. MCLR i.e.
p.a. 9.45% p.a. 9.70% p.a. 09.90% p.a

SBI Home Loan Interest Rates 2015 – 9.80% - 9.85%. But after October’ 2015 it goes
down to 9.50% -9.55%. It helps borrowers to save around Rs 21.98 on per lac emi for
30 years. For example if you can take a loan amount of around 20 lakh for 30 years at
9.50% rate of interest than you can save around Rs 439.60 on per month EMI or Rs
158256 in 30 years tenure.
 State Bank of India is the country’s largest bank in terms of number of customers,
employees, advances and deposits. Despite being a government-owned bank, it has
not only managed to stay ahead of its private sector peers, but continue to be one of
the most profitable banks. It remains the ‘trend-setter’ for the banking industry when
it comes to taking decisions on interest rates, and product innovations. It has a market
cap of Rs 1, 90,000crore and total loan outstanding as of March 2015 was Rs 11 lakh
crore.

Latest Update: Interest Rates on Home Loans reduce to 9.30% as per MCLR Rates
August 2016. (MCLR for 1 Year = 9.10%)

Eligibility Criteria, Documentation required for SBI Home Loan:

Salaried Self employed

Age 18 years to 70years 21 years to 70years
Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)
Loan Amount
Offered 5,00,000 - 1,00,00000 5,00,000 - 2,00,00000

Tenure 5years-20years 5years-20years

Current Experience 2years 3years

1)Application form with

photograph 1 Application form with photograph
)
2)Identity & residence 2 Identity & residence proof
)
proof 3 Education qualifications certificate & proof of
Documentation )
3)Last 3 months salary slip business existence
4)Form 16 4 Business profile,
)
5)Last 6 months bank salari 5 Last 3 years profit/loss & balance sheet
)
6 Last 6 months bank statements
)
ed credit statements 7 Processing fee cheque
)
6)Processing fee cheque
SBI Processing Fees Charges

Up to Rs. 25 Lakhs - 0.25% of loan amount, minimum Rs. 1000/- Above Rs. 25
Lakhs and up to Rs. 75 Lakhs - Rs. 6,500/-Above Rs. 75 Lakhs - Rs. 10,000/-
st
0 % Processing Fee for Takeover of Home Loans proposals for the period from 1
June, 2016 to 30th September, 2016 (Balance Transfer)
st
50 % waiver of Processing Fee on SBI approved Projects for the period from 1 June,
2016 to 30th September, 2016

Margin/ LTV Ratio:

Loan Amount Margin (Min.) Maximum LTV Ratio

(Max.)
Up to Rs. 30 Lakhs 10% 90%
Above Rs. 30 Lakhs to 75 Lakhs 20% 80%
Above Rs. 75 Lakhs 25% 75%

Repayment period: Maximum 30 years (or) Up to the age of 70 years (the age by
which the loan should be fully repaid) of the borrower, whichever is early.
Moratoriumperiod (Repayment holiday): The moratoriumperiod is included within
the maximum repayment period.

SBI Home Loan EMI Calculator

Calculate your loan EMI on the basis of loan amount, loan term & interest rates
within seconds
 SBI Home Loan Products:

SBI MAXGAIN - Home loan as an Overdraft

The loan is sanctioned as an Overdraft with added flexibility to operate the Home
Loan Account like SB or Current Account. Bank also provides Cheque Book/Net
Banking facility for the purpose.
✓ Minimum Loan amount under Maxi Gain Home Loan- Rs.20 lakhs
✓ Maximum Loan amount sanctioned under Max gain Home Loan - No Cap

Interest Rates charged on Max gain Home Loan by State Bank of India:
✓ Max gain above Rs. 20 lakhs & up to Rs. 1 crore = 9.40% p.a. (Female
Borrowers), 9.45% (Other borrowers)
✓Max gain above Rs. 1 crore = 9.65% p.a. (Female Borrowers), 9.70% (Other borrowers)

✓ CRE Max gain, irrespective of loan limit = 9.85% for Women & 9.90% for
Other borrowers are applicable

SBI YUVA Home Loan - A Special scheme for Youth -

Under Yuva Home loan scheme bank provide 20% higher loan amount than that of
normal home loan to employees of Private sector companies, MNCs, govt companies,
PSUs & govt employees.

Eligibility Criteria for Yuva Home Loan:

✓ Age between 21 years to 45 years
✓ Minimum Per month income should be Rs.3000/-

✓ In first 36 Months/ 3 years only interest applied on home loan is payable.

Regular EMI starts after completion of 3 Years.

SBI Realty Home Loan - For Purchase of Plot for construction

SBI offers this loan to purchase a plot for construction of house. Construction of
house should commence within 2 years from the date of availment of SBI Realty
Loan.

✓ Maximum loan amount a borrower can get Rs.10 crores.

✓ Maximum Repayment period under Realty Home loan is 15 Years.
 SBI Pal or SBI Pre Approved Home Loan:

✓ SBI PAL provides sanction of Home Loan limits to the customers before
finalization of the property which enables them to negotiate with the Builder/Seller
confidently.
✓The loan eligibility will be assessed on the basis of income details of the applicant.

✓ Non-refundable processing fee as applicable to the Home Loan will be

collected at the time of sanction.
✓ Pre-approved loan arrangement letter (PLAL) will be valid for a period of 4
months. Property papers will be required to be submitted by the borrower within the
validity of PLAL. Processing fee will not be levied again.
✓ Under Pre Approved Home Loan Scheme Minimum Loan amount: Rs.10 Lacs.

SBI TOP UP HOME LOAN

Under this scheme all borrowers who paid home loans with a satisfactory repayment
track of at least one year are eligible.
✓ Minimum Top-up Loan is Rs.3 Lac & Maximum is Rs.5 Crore.

✓ Processing Fees: 0.35% of Loan Amount subject to a minimum of Rs 1500/-

and Maximum of Rs 10,000/-

Interest Rates charged on Top-up loan is different from Normal Home Loan

Top-up loan amount Term Loan Loan Overdraft

Up toRs. 25 lakh 9.45% 10.90%

Above Rs. 25 lakh &Up toRs. 2 crores 9.90% 10.90%

02) BANK OF MAHARASHTRA

Maharashtra has a long historyof commercial activity since ages because of its
strategic location in Indian sub-continent and its large natural resources.

Maharashtra has been a progressive region and the Banking activity was also started
in this region quite early. Historically speaking, the Bank of Bombay established in
1840 was the first Commercial Bank in Maharashtra. However, the first commercial
bank set up in Maharashtra outside Mumbai was The Poona Bank established in 1889
at Pune followed by The Deccan Bank in 1890 and the Bombay Banking Company in
1898.

Outbreak of the First World War leading to great depression took a heavy toll on
banks in India. Between 1914 and 1935 as many as 380 banks failed in the country
out of which 54 were based in Bombay province. The impact of these failures was felt
more in Maharashtra region because certain banks known for a long time were also
closed down.

The effects of great depression started fading and new enterprises began emerging with
new hopes in all spheres of economy, including banking

The Maratha Chamber of Commerce (MCC) was established in Poona in 1934 and its
Founder Secretary ShriA.R.Bhat was a great visionary.

ShriBhat initiated for a comprehensive review of banking services available in the

region through the special issue of Kesari newspaper released in memory of
LokmanyaTilak within a few months of establishment of MCC. He ensured that his
friend, Shri V. P.Varde, considered as a doyen of co-operative movement, wrote an
article on the necessity of a separate bank for Maharashtra, thus launching a public
discussion on the subject. While there was no noticeable response to the article of Shri
Varde, Shri A R Bhatt kept on discussing the subject with leaders in Trade and
Industry.

ShriBhat ensured that Maratha Chamber and its Directors took up the issue and held a
Conference on Business and Industry in Poona on behalf of the MCC in
February1935.

ShriBhat pushed the proposal for formation of a bank and succeeded in getting the following
resolution adopted by the conference
"For providing capital to the trade and industry in Maharashtra, it is essential to
establish a Joint Stock commercial bank. The Maratha Chamber is, therefore,
requested to make all the necessary enquiries in that behalf and take appropriate steps
for floating such a bank. The business community in Maharashtra is urged to support
such an effort.

The Swadeshi movement of the first decade of the 20th Century gave stimulus to the
establishment of a number of commercial banks under Indian Management in
Maharashtra. The MCC formed a sub-committee consisting of SarvashriV.G.Kale,
D.K.Sathe, N.G.Pawar, G.D.Apte and A.R.Bhat to work out the details.

The first meeting of the committee was held on 19 May 1935 in the conference room
of the Kesari Maratha office and besides the committee members, prominent
personalities from the City like Shri Babasaheb Kamat, the then President of the
MCCI, J S.Karandikar, Rajabhau Godbole, Govindrao Pandit, Damuanna Potdar,
S.R.Sardesai, Baburao Gokhale, and N.N. Kshirsagar among others participated in
deliberations.

Another meeting of the subcommittee with wider public representation was followed
on 27 May 1935 in the meeting hall of Kesari Maratha office and decisions on matters
like the number of Directors on the Board of the proposed bank (maximum to be 11
members), Amount of each share (to be Rs.50/-) and primary condition for becoming
a Director (to hold a minimum of 500 shares) were taken.
 Bank of Maharashtra Home Loan

Interest Rates 9.65% – 11.20%

Processing Fees up to 0.25%
Pre-payment Charges Nil
Lowest EMI Rs.856
Min. Income Rs.10000/- p.m.
Loan Repayment 1 to 30 years

Interest Rates on Bank of Maharashtra Housing Loans 201

Amount /
tenor Deduction up to 60% Deduction more than 60% and up to
65%
Existing Rate of Proposed Existing Rate of Interest Proposed ROI
Interest ROI
Up to 3 Crore 9.70% 9.65% 9.95% 9.90%
Above 3 10.20% 10.15% 10.45% 10.40%
Crore
 Maha Super Consumer Loan Scheme:

Additional Bonanza for Borrowers under the scheme:

In this scheme, borrower can get up to 10% of the total loan amount with a
maximum limit of Rs.10.00lakh
Processing fee – 1.00% of the loan amount or minimum of Rs.500/-

Documentation Charges – 0.10% of the loan amount or maximum up to Rs.10, 000/-

Repayment – Maximum up to 30 years
MARGINAL COST OF FUNDS BASED LENDING RATE (MCLR) WITH
EFFECT FROM-01.04.2016

Tenor MCLR
Overnight MCLR 9.10%
One Month MCLR 9.35%
Three Month 9.45%
Six Month 9.60%
One Year 9.65%

Eligible criteria for Maha Bank housing loan scheme

Salaried borrowers can get: 60 times of Gross Monthly Salary/ 75 times of Net
Monthly Salary (Whichever is Higher) as per Maha bank norms.

Others Businessmen/Professionals can get up to 5 times of last 2 years average

Income based on IT Returns. If borrower looking for the purchase of Plot &
Construction flat/ site: 70% of the cost (registered value) of Plot after complying with
Net Take Home Pay/Income norms. Plot on standalone basis should not be financed.
Cost of the Plot should not exceed 75% of the total cost of housing unit.
II) PRIVATE BANK’S

01) ICICI Bank (Industrial Credit and Investment Corporation of India)

ICICIC Bank: ICICI Bank was originally promoted in 1994 by ICICI Limited, an
Indian financial institution, and was its wholly-owned subsidiary. ICICI's
shareholding in ICICI Bank was reduced to 46% through a public offering of shares in
India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in
fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of
the World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing
medium-term and long- term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that
the merger of ICICI with ICICI Bank would be the optimal strategic alternative for
both entities, and would create the optimal legal structure for the ICICI group's
universal banking strategy. The merger would enhance value for ICICI shareholders
through the merged entity's access to low-cost deposits, greater opportunities for
earning fee-based income and the ability to participate in the payments system and
provide transaction- banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless
access to ICICI's strong corporate relationships built up over five decades, entry into
new business segments, higher market share in various business segments, particularly
fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI
Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High
Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity. ICICI Bank has
formulated a Code of Business Conduct and Ethics for its directors and employees..

ICICI Bank Products

ICICI Bank Unifare Bangalore Metro Card

ICICI Bank and Bangalore Metro Rail Corporation Limited (BMRCL) on April 2015
announced the launch of the ‘ICICI Bank Unifare Bangalore Metro Card’. This card
offers the commuters dual benefits of an ICICI Bank credit or debit card and
BMRCL’s smart card, called Namma Metro Smart Card. This is a cobranded card in
association with MasterCard.

'Touch n Remit' facility for NRIs in Kingdom of Bahrain

In March 2015, ICICI Bank tied up with SADAD Electronic Payments WLL to offer
remittance service for NRIs based in Bahrain, enabling them to transfer monies
instantly to India from the latter’s kiosks spread across the Kingdom of Bahrain. This
facility has been named as ‘Touch n Remit’.

ICICI Bank Ltd launches 'Video Banking' for NRI

In February 2015, ICICI Bank announced the launch of 'Video Banking' for all its
NRI (Non Resident Indian) customers. Using this service, the customers can now
connect with a customer care representative over a video call, round-the-clock, on all
days from anywhere using their smart phone.
Pockets by ICICI Bank

In February 2015, ICICI Bank Re-Launched POCKETS now is working as a "Digital

wallet" for everyone (Android OS users only). The Wallet be can be opened by
anyone and can conduct transactions like recharge, shopping, transfer money using
the virtual visa card which is issuedwhen signing up for the wallet.

ICICI Bank Pay on Twitter

ICICI Bank in January, 2015 launched banking services on Twitter, christened as

'ICICI Bank Pay'. This service in India enables ICICI Bank customers to transfer
money to anyone in the countrywho has a Twitter account, check account balance,
view last three transactions and recharge prepaid mobile in a completely secure
manner.

Contactless Credit and Debit Cards

ICICI Bank in January, 2015 announced the launch of the country’s first ‘Contactless’
debit and credit cards, enabling its customers to make electronic payments by just
waving the cards near the merchant terminal in lieu of dipping or swiping them. These
cards are based on the Near Field Communication (NFC) technology, which provides
customers the improved convenience of speed as these cards require significantly less
time than traditional cards to complete a transaction along with enhanced security as
they remain in control of the customer.

My Savings Rewards

ICICI Bank has rolled-out the programme 'My Savings Rewards' from 1 September
2012, where reward points are offered to individual domestic customers for a variety
of transactions done through the savings bank account. Reward points are offered
automatically to customers for activating Internet banking, shopping online/ paying
utility bills with Internet banking and auto- debit from savings account towards
equated monthly installments for home/ auto/ personal loan/ recurring deposit.
Customers are required to maintain a monthly average balance of ₹ 15,000 or more.
The Indian bank will require 5.5% interest on short term loans and long term bonds
and mortgages loans up to $2 million up to 20years to pay back annual interest of
5.5% short term loans from 3 months up to 3years at 5.5% .credit interest is reduced
to 10% annually .
 I Wish- the flexible recurring deposit

I Wish is a flexible recurring deposit product launched by ICICI Bank for its savings
account customers. Unlike a traditional recurring deposit, I Wish allows customers to
save varying amounts of money at any time of their choice. Customers can create
several goals and track their progress on an online interface.

ICICI Bank has developed this product in collaboration with Social Money. ICICI
Bank has also launched an app for Android and Apple smart watches. The app will
provide the facility ofonline banking transaction from smart watch.

Go Green Initiative

The Go Green Initiative is an organization wide initiative that moves beyond moving
people, processes and customers to cost effective automated channels to build
awareness and consciousness of our environment, our nation and our society.

ICICI Home Loan Details:

Interest Rates 9.40% - 10.15%

Processing Fees 0.50% or 10000 whichever is maximum
Pre-payment Charges Nil
Loan Amount up to 90% of market value
Lowest EMI Rs.834/lakh
Min. Income Rs.12000/- p.m
Loan Repayment 1 to 30 years

ICICI Bank Home Loan offers you Home Loan for following purposes:-
1. Home Loan- If you want to purchase a new home then you can apply individually or
jointly.
2. Home Improvement Loan- For your home improvement you can take the
Home Improvement Loan from ICICI Bank.
3. EMI under Construction- EMI under Construction helps you to make
payments in EMI, in a partly sanctioned loan for an under construction project.
4. Balance Transfer-ICICI Bank Home Loan gives you facility to transfer your
running loan from another Bank
Top-Up Loan- ICICI Bank Home Loan facilitates the Top-Up Loan, an additional
funding against the security of your property
 ICICI Bank Home Loan Interest Rates September 2016 (Updated on 01 September
2016)

Floating Interest Rates for Women 9.40% - 9.65%

Fixed Rates for Women (5 & 10 Year) 9.40% - 9.75%
Fixed Interest Rates for women up to 30 Years 9.70% - 10.05%
Interest Rates for Weaker Section 9.40% (Floating)
Floating Interest Rates for Others (Salaried & Self Emp) 9.45% - 9.70%
Fixed Rates for Others (2, 3 & 10 Year) 9.45%, 9.75% - 9.80%
Fixed Interest Rates for others up to 30 Years 9.75% - 10.10%

Features & Benefits of ICICI Bank Home

Loan Attractive Home Loan Rates

 No charges on part pre-payment of your Home Loan
 Top Up & Home Improvement Loan facility available on existing Home Loan
 Home loan amounts suited to your needs
 Home Loan tenure up to 25 years
 Simplified Documentation
 Doorstep Delivery of home loan papers
 Sanction approval without having selected a property.
 Free Personal Accident Insurance policies
 Insurance options for your home loan at attractive premium
03) Axis Bank
UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai
in December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad
by Dr.Manmohan Singh, then Finance Minister of India. UTI Bank began its
operations in 1993, after the Government of India allowed new private banks to be
established. The Bank was promoted in 1993 jointly by the Administrator of the Unit
Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance
Corporation, National Insurance Company, The New India Assurance Company, The
Oriental Insurance Corporation and United India Insurance Company.

In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the
Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2004 the
RBI put Global Trust into moratorium and supervised its merger into Oriental Bank of
Commerce.

UTI Bank opened its first overseas branch in 2006 Singapore. That same year it
opened a representative office in Shanghai, China.

UTI Bank opened a branch in the Dubai International Financial Centre in 2007. That
same year it began branch operations in Hong Kong. The next year it opened a
representative office in Dubai.

Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial

Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened a
representative office in Abu Dhabi.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis
Bank UK has a branch in London.

Operations

Indian Business: As of 22 April 2016, the bank had a network of 3062 branches and
extension counters and 12922 ATMs. Axis Bank has the largest ATM network among
private banks in India and it operates an ATM at one of the world’s highest sites at
Thegu, Sikkim at a height of 4,023 meters (13,200 ft.) above sea level.
International Business: The Bank has eight international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Shanghai, Colombo and representative
offices at Dubai and Abu Dhabi, which focus on corporate lending, trade finance,
syndication, investment banking and liability businesses. In addition to the above, the
Bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited.
The total assets of the overseas branches were US$7.86bn.

Services

As of 2014, Axis Bank operates in four segments: treasury operations, retail banking,
corporate banking, and wholesale banking.

Treasury operations [

The Bank’s treasury operation services include investments in sovereign and

corporate debt, equity and mutual funds, trading operations, derivative trading and
foreign exchange operations on the account, and for customers and central funding.

Retail banking

In the retail banking category, the bank offers services such as lending to
individuals/small businesses subject to the orientation, product and granularity
criterion, along with liability products, card services, Internet banking, automated
teller machines (ATM) services, depository, financial advisory services, and Non-
resident Indian (NRI) services. Axis bank is a participant in RBI's NEFT enabled
participating banks list.

Corporate/wholesale banking

The Bank offers to corporate and other organizations services including corporate
relationship not included under retail banking, corporate advisory services,
placements and syndication, management of public issues, project appraisals, capital
market related services and cash management services.
NRI services

Products and services for NRIs that facilitate investments in India. Business banking

The Bank collects income and other direct taxes through its 214 authorized branches
at 137 locations and central excise and service taxes (including e-Payments) through
56 authorized branches at 14 locations.

Investment banking

Bank’s Investment Banking business comprises activities related to Equity Capital

Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-
registered Category I Merchant Banker and has been active in advising Indian
companies in raising equity through IPOs, QIPs, and Rights issues etc. During the
financial year ended 31 March 2012, Axis Bank undertook 9 transactions including 5
IPOs and 2 Open Offers.

Lending to small and medium enterprises

Axis Bank SME business is segmented in three groups: Small Enterprises, Medium
Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup
for financing micro enterprises is also set up. Axis bank is the first Indian Bank
having TCDC cards in 11 currencies.

Agriculture banking

759 branches of the Bank provide banking services, including agricultural loans, to
farmers.[3] As on 31 March 2013, the Bank’s outstanding loans in the agricultural
sector was INR 148 billion, constituting 7.5% of its total advances.

Advisory Services have been developed to advise public and private sector clients on
capital structuring and funding options with a view to help the clients to help them
reduce the cost of funds. The Group has also been active in advising the central and
various state governments or their agencies in privatization and bid process
management.
 The Group has successfully worked on some of the benchmark transactions in
infrastructure development & manufacturing sector covering an entire range of
projects across roads, railways, airports, urban infrastructure maritime, power, oil and
gas, petrochemicals, cement, sugar, textiles, steel & allied sectors, auto ancillaries,
paper, Information Technology (IT), etc.

Ping Pay was unveiled between 21–25 May 2015, which is a multi-social payment
solution that let customers to transfer funds using their smart phones to both Axis Bank
accounts and other banks' account holders.

Key Highlights of Axis Bank Home Loan

Interest Rates 9.40% - 11.00%

Processing Fees 1500 Flat with MLI
Pre-payment Charges Nil
Loan Amount up to 90% of market value
Lowest EMI Rs.830 per 1 lakh
Min. Income Rs.12000/- p.m
Loan Repayment 1 to 30 years

Features & Benefits of Axis Bank Home Loan:

✓ Flexible Interest Rates – You have option to choose Floating or fixed rate
✓ Special Balance Transfer Schemes Available
✓ Doorstep Service which makes your loan process Easy and convenient
✓ Nil Pre Payment charges means you can pre pay loan at any time without Penalty.
(valid only in floating rate option)
✓ Longer Repayment Period of 30 Years.
✓Edge Loyalty Points on Home Loans.
Special Schemes of Axis Bank Are:
HAPPY Ending Home Loan (Save Up to 2 lakh of Rupees) Special Home loan
transfer Scheme

Axis Bank Home Loan Interest Rates: Updated on 23 July 2016 For Salaried:

Loan amount MCLR + Mark Up Effective Rate Of Interest

Loan amount up toRs 28 lakh MCLR + 0.15% 9.45% p.a.

Loan amount above Rs 28 lakh MCLR + 0.20% 9.50% p.a.

Top Up Home Loan MCLR + 2.30% 9.40% p.a.

For Self Employed:

Loan amount MCLR + Mark Up Effective Rate Of Interest

Loan amount up toRs 28 lakh MCLR + 0.25% 9.55% p.a.

Loan amount above Rs 28 lakh MCLR + 0.30% 9.60% p.a.

Top Up Home Loan MCLR + 2.30% 9.40% p.a.

Fixed Interest Rate Home Loan - 9.95% p.a

Super Saver Home Loans at a special RATE of 9.75%

Marginal Cost Based Lending Rate (MCLR) – 9.30%

MCLR Reset frequency for Home Loans - Half Yearly

Base Rate - 9.35%

Customers who have availed disbursement or received a sanction prior to March 31,
2016 will continue to operate on base rate. Existing customers can get in touch with
our customer care, if they wish to switch to MCLR.
 Rate applicable only for Vanilla Standard Home Loan Product

Applicable pricing
Product Variant/Rate Slab
Loans up to Rs 28 lakhs Loans above Rs 28 lakhs
Vanilla Home Loans (Including
HEHL, RUSU) (Salaried) MCLR + 0.20% = 9.4% p.a. MCLR + 0.3% = 9.5% p.a.
Vanilla Home Loans (including
Surrogate takeover, HEHL, Gross
Professional Receipt (GPR), Gross
Turnover Product (GTP) and MCLR + 0.25% = 9.45% p.a. MCLR + 0.35% = 9.55% p.a.
RUSU) (Self Employed)
Empower Home Loans (Self
Employed) MCLR + 1% = 10.2% p.a.

Super Saver Home Loans ( MCLR + 0.4% = 9.6%

Salaried
& Self Employed)
Saksham Home Loans, NRI SE
Surrogate, Banking Surrogate, App
Score Based HL** and Surrogate
Program for Directors** (Self MCLR + 0.8% = 10%
Employed)
Asha Home Loans
Salaried Self Employed
Product Variant/Rate Slab ( All Loan Amount) ( All Loan Amount)
Vanilla variant MCLR + 1.05% = 10.25% MCLR + 1.35% = 10.5% p.a.
p.a.
All other variants (banking
Surrogate, low LTV etc.) MCLR + 1.55% = 10.75% MCLR + 1.8% = 11% p.a.
p.a.

Note: Kisan Home Loans is priced same as Vanilla HL where the income from
agriculture is up to 25% of the total income and 25 bps higher than Vanilla HL where
the income from agriculture is > 25% of the total income.
 Top Up Loans:

Loan Type Sub type Applicable Interest Rate

I) Where top up loan is up to Same rate at which the
30%
of original sanction amount of Home loan is
Top up loan linked to Balance home loan to be taken over being taken over
Transfer of Housing Loan (Fresh
Home loan plus top up)** II) Where top up loan >30% of
original sanction amount of LAP rate shall
home be applicable
loan to be taken over
I) Where top up loan is up to
30% Same rate at which the
of original sanction amount of
Home loan is running
Existing Home loan customers home loan
availing a Top-up loan
II) Where top up loan exceeds LAP rate shall be
30%
of original sanction amount of applicable
home loan

Home Loan Rates for Axis Bank/Group company employees:

Loan Amount Slab Applicable Pricing

For all loan amounts MCLR + 0.15%= 9.35% p.a.

Fixed Rates (for 20 yrs.):

Fixed rate for Salaried & Self Employed Customers:

-Surrogate Banking @ 12.50% p.a.

Super Saver Home Loans

Only for major cities:-

Hyderabad.

Super Saver gives the customer an option to park additional funds which will reduce
the interest obligation on the home loan to the extent of the funds parked, with the
flexibility to withdraw the funds anytime. In order to provide the customers with the
flexibility to redraw excess funds parked by him, Super Saver account comes with an
ATM card, cheque book, internet and phone banking facility.
Features & Norms:

Loan Amount
Rs 1 crore& above
Current
Delhi & Mumbai (shall be extended to other locations subsequently
Location
Up to 20 years (additionally up to 24 months moratorium for under
Tenure
construction properties)
Customer Resident Indians Only- Salaried & Self-Employed
Type
Product
Vanilla Home Loan & Balance Transfer - Income Based Program
Variants
a) EMI based: Works similar to a Standard Home Loan (Term loan). EMI is
calculated (comprising of Principal & Interest) which is the maximum
Principal outflow. However, the actual outflow may be lesser than the EMI depending
reduction on the utilization of principal (excess funds parked in the account) resulting
options in lower than the projected interest. b) Equated Principal Amortization: The
Principal repayment is distributed equally over the loan tenure & interest is
payable on the actual utilization of the principal.
No separate repayment mode is required to be collected. Customer needs to
ensure that the funds equal to principal repayment & interest are available
Repa yment on the cycle date in Super Saver account.
FOIR
70% (10% lower FOIR under Equated Principal Amortization)
Facilities to
Cheque Book, ATM card, Internet Banking & Phone Banking
be issued
 List of Home Loan documents required

The following documents are required along with your loan application:

Purpose Salaried Self Employed

Passport or Voter's ID card or Driving License or Job Card issued by
Proof of Identity and NREGA or Adhaar Card or PAN card (PAN Card only as identity
Address
proof) or any other document as acceptable to the Bank
Latest 3 Months salary slip IT returns for the last 2 years and
showing all deductions and computation of income for the last 2
Proof of income Form 16 years certified by a CA
Bank statement or Pass
Book where salary or
Last 6 months Last 6 months
income is credited
Guarantor form Optional Optional

Axis Bank Home Loan Eligibility Criteria:

A) Salaried Individuals:

 Individuals in permanent service in the Government or reputed companies

 Applicants should be above 24 years and between 60 years at the time maturity

B) Professionals:

 Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost

accountants, company secretary, and management consultants only) can apply.
 Applicants above 24 years of age at the time of loan commencement and up to 65
years or less at the time of loan maturity meet our housing loan criteria.

C) - Self Employed Individuals

 Any individual filing income tax returns can apply

 Applicants should be above 24 years of age at the time of loan commencement and
up to 65 years or less at the time of loan maturity
 CHAPTER: 3

DATA ANALYSIS AND INTERPRETATION

 5.1 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 family’s 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 number of
players entered in housing finance. One of the most important benefits of taking a
home loan is the interest rate that is allowed on the home loan. Fixed and variable
interest rate options are also available for home loans. Many financiers also offer
home improvement loans at the same interest rate as they offer the home loans.

In this section ,the researcher is intended to measure the influence of demographic

profile of the housing loan beneficiaries in particular occupation and income are
considered crucial demographic variables to identify the perceptual difference over
the home loans. After reviewing national and international literature, the researcher
has identified the following factors which determine a crucial role in determining
customer perception. The following five factors have been predominantly quoted by
the customers to perceive their opinion.

1. EMI

2. Rate of interest

3. 3 Years of repayment.

4. Type of interest

5. Total charges
5.2.1 : Age of Group of surveyed Respondents

PUBLIC SECTOR BANK PRIVATE SECTOR BANK GRAND

TOTAL
AGE GROUP MALE FEMALE TOTAL(A) MALE FEMALE TOTAL(B) (A+B)

18-25
YEARS 5 3 8 7 3 10 18
26-35
YEARS 3 2 5 4 2 06 11
36-49
YEARS 5 2 7 2 1 3 10
50-60
YEARS 5 1 6 4 1 5 11
TOTAL 18 8 26 17 7 24 50

20
18
16
14
12
10

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

PUBLIC SECTOR BANKPRIVATE SECTOR BANKPUBLIC SECTOR BANK 2

PRIVATE SECTOR BANK 2 GRAND TOTAL
 Interpretation:

 Total number of respondents are 50

 08 persons are found in the 18-25 age group of the Public Sector banks.
 10 persons are found in the 18-25 age group of the Private Sector banks.
 05 persons are found in the 26-35 age group of the Public Sector banks.
 06 persons are found in the 26-35 age group of the Private Sector banks.
 07 persons are found in the 36-49 age group of the Public Sector banks.
 03 persons are found in the 36-49 age group of the Private Sector banks.
 06 persons are found in the 50-60 age group of the Public Sector banks.
 05 persons are found in the 50-60 age group of the Private Sector banks.
5.2.2 : Qualification Group of Surveyed Respondents

PUBLIC SECTOR PRIVATE

BANK SECTOR BANK TOTAL
QUALIFICATION

S.S.C 10 4 14

H.S.C 7 6 13

GRADUATE 3 5 8

POST GRADUATE 4 1 5

CA/C.S/Ph.D. 3 2 5
Others 2 3 5
TOTAL 27 23 50

PUBLIC SECTOR BANK PRIVATE SECTOR BANK TOTAL

16
14
12

10

S.S.C H.S.C GRADUATEPOST GRADUATE C.A/C.S/Ph.D OTHERS

 Interpretations:

 Total numbers of respondents are 50.

 10 persons are found S.S.C.as in public sector bank.
 04 persons are found S.S.C as in private sector bank.
 07 persons are found as a H.S.C in public sector bank.
 06 persons are found as a H.S.C. in private sector bank.
 03 persons are found as a graduate in public sector bank.
 05 persons are found as a graduate in private sector bank.
 04 persons are found as a post graduate in public sector bank.
 O1 persons are found as a post graduate in private sector bank.
 03 persons are found as a PhD / C.A/ C.S in public sector bank.
 02 persons are found as a PhD / C.A/ C.S in private sector bank.
 02 persons are found as other in public sector bank.
 03 persons are found as other in private sector bank.
 5.2.4. UNDERSTANDING APPLICATION FORM
PUBLIC SECTOR BANK PRIVATE SECTOR BANK GRAND
TOTAL
S.B.I B.O.M TOTAL ICICI AXIS TOTAL
(A) BANK BANK (B)
STRONGLY 3 2 5 2 1 3 8
AGREE
AGREE 5 3 8 2 2 4 12
NETURAL 4 2 6 1 1 2 8
DISAGREE 5 5 10 0 1 1 11
STRONGLY 5 1 6 2 3 5 11
DISAGREE
TOTAL 22 13 35 7 8 15 50

Chart Title
60

50

40

30

20

10

S.B.I B.O.M TOTAL ICICI BANKAXIS BANKTOTALGRAND TOTAL

STRONGLY AGREE AGREENETURALDISAGREESTRONGLY DISAGREE

 Interpretation:

 Total number of respondents are 50

 5 persons are Strongly Agreed the understand Application form of the Public sector
banks.
 3 persons are Strongly Agreed the understand Application form of the Private sector
banks.
 8 persons are Agreed the understand Application form of the Public sector banks.
 4 persons are Agreed the understand Application form of the Private sector banks.
 6 persons are neutral the understand Application form of Public sector banks.
 2 persons are neutral the understand Application form of Private sector banks.
 10 persons are Disagree the understand Application form of Public sector banks.
 1 persons are Disagree the understand Application form of Private sector banks.
 06 persons are Strongly Disagree the understand Application form of Public sector
banks.
 05 persons are Strongly Disagree the understand Application form of Private sector
banks.
 5.2.5. MORTGAGE PROCESS
PUBLIC SECTOR BANK PRIVATE SECTOR BANK GRAND
TOTAL

S.B.I B.O.M TOTAL ICICI AXIS TOTAL

(A) BANK BANK (B)

STRONGLY 3 2 5 3 2 5 10
AGREE

AGREE 5 2 7 5 3 8 15
NETURAL 2 1 3 5 2 7 10
DISAGREE 4 0 4 4 2 6 10
STRONGLY 2 1 3 2 0 2 5
DISAGREE

TOTAL 16 6 22 19 9 28 50

MORTGAGE PROCESS
30

25

20

15

10

S.B.I B.O.M TOTAL ICICI BANK AXIS BANK TOTAL

STRONGLY AGREE AGREE NETURALDISAGREESTRONGLY DISAGREE

 Interpretation:

 Total numbers of respondents are 50.

 05 Persons are strongly agreed the mortgage process has been explained thoroughly
in Public sector banks.
 05 Persons are strongly agreed the mortgage process has been explained thoroughly
in Private sector banks.
 07 Persons are agreed the mortgage process has been explained thoroughly in Public
sector banks.
08 Persons are agreed the mortgage process has been explained thoroughly in Private
sector banks.
 03 Persons are neutral the mortgage process has been explained thoroughly in Public
sector banks.
 07Persons are neutral the mortgage process has been explained thoroughly in Private
sector banks.
 04 Persons are disagree agreed the mortgage process has been explained thoroughly
in Public sector banks.
 06 Persons are disagreed the mortgage process has been explained thoroughly in
Private sector banks.
 03 are strongly disagreed the mortgage process has been explained thoroughly in
Public sector banks.
 02 Persons are strongly disagreed the mortgage process has been explained
thoroughly in Private sector banks.
 5.2.6. EMI FIXED BY BANK
PUBLIC SECTOR BANK PRIVATE SECTOR BANK GRAND
TOTAL

S.B.I B.O.M TOTAL ICICI AXIS TOTAL

(A) BANK BANK (B)

STRONGLY 6 4 10 3 3 6 16
AGREE

AGREE 6 5 11 5 6 11 22
NETURAL 4 2 6 3 1 4 10
DISAGREE 0 1 1 0 1 1 2
STRONGLY 0 0 0 0 0 0 0
DISAGREE

TOTAL 16 12 28 11 11 22 50

Chart Title

11

11

10

S.B.I B.O.M TOTAL ICICI BANK AXIS BANK TOTAL

STRONGLY AGREEEAGREEENETURALDISAGREESTRONGLY DISAGREE
 Interpretation:
 Total numbers of respondents are 50.
 10 persons are strongly agreed to prefer EMI fixed by Public sector banks.
 06 persons are strongly agreed to prefer EMI fixed by Private sector banks.
 11 persons are agreed to prefer EMI fixed by Public sector banks.
 11 persons are agreed to prefer EMI fixed by Private sector banks.
 06 persons are neutral to prefer EMI fixed by Public sector banks.
 04 persons are neutral to prefer EMI fixed by Private sector banks.
 01 persons are disagreed to prefer EMI fixed by Public sector banks.
 01 persons are disagreed to prefer EMI fixed by Private sector banks.
 No persons are strongly disagreed to prefer EMI fixed by Public sector banks.
 No persons are strongly disagreed to prefer EMI fixed by Private sector banks.
 5.2.7. R ATE OF SERVICE
PUBLIC SECTOR BANK PRIVATE SECTOR BANK GRAND
TOTAL

S.B.I B.O.M TOTAL ICICI AXIS TOTAL

(A) BANK BANK (B)

STRONGLY 1 2 3 5 1 6 9
AGREE

AGREE 4 2 6 2 1 3 9
NETURAL 1 3 4 6 4 10 14
DISAGREE 1 1 2 2 3 5 7
STRONGLY 0 2 2 4 5 9 11
DISAGREE

TOTAL 7 10 17 19 14 33 50

RATE OF SERVICE
60

50

40

30

20

10

S.B.I B.O.M TOTAL ICICI AXIS BANK TOTAL

STRONGLY AGREE AGREE NETURAL DISAGREESTRONGLY DISAGREE

 Interpretation:

 Total numbers of respondents are 50.

 03 Persons are strongly agreed the rate of the service received by Public sectors banks.
 06 Persons are strongly agreed the rate of the service received by Private Sectors banks.
 06 Persons are agreed the rate of the service received by Public sectors banks.
 03 Persons are agreed the rate of the service received by Private Sectors banks.
 04 Persons are neutral the rate of the service received by Public sectors banks.
 10 Persons are neutral the rate of the service received by Private sectors banks.
 02 Persons are disagreed the rate of the service received by Public sectors banks.
 05 Persons are disagreed the rate of the service received by Private sectors banks.
 02 Persons are strongly disagreed the rate of the service received by Public sectors
banks.
 09persons are strongly disagreed the rate of the service received by Private sectors
banks.
 5.2.8. RATE OF INTRESET
PUBLIC SECTOR BANK PRIVATE SECTOR BANK GRAND
TOTAL

S.B.I B.O.M TOTAL ICICI AXIS TOTAL

(A) BANK BANK (B)

STRONGLY 4 1 5 2 3 5 10
AGREE

AGREE 4 5 9 5 5 10 19
NETURAL 2 4 6 4 2 6 12
DISAGREE 1 1 2 2 1 3 4
STRONGLY 0 2 2 1 1 2 4
DISAGREE

TOTAL 11 13 24 14 12 26 50

RATE OF INTERSET
30

25

20

15

10

S.B.I B.O.M TOTAL ICICI BANK AXIS BANK TOTAL

STRONGLY AGREEAGREENETURALDISAGREESTRONGLY DISAGREE

 Interpretation:

 Total numbers of respondents are 50.

 05 Persons are strongly agreed the interest rate charged by Public sectors banks.
 05 Persons are strongly agreed the interest rate charged by Private sectors banks.
 09 Persons are agreed the interest rate charged by Public sectors banks.
 10 Persons are agreed the interest rate charged by Private sectors banks.
 06 Persons are neutral the interest rate charged by Public sectors banks.
 06 Persons are neutral the interest rate charged by Private sectors banks.
 02 Persons are disagreed the interest rate charged by Public sectors banks.
 03 Persons are disagreed the interest rate charged by Private sectors banks.
 02 Persons are strongly disagreed the interest rate charged by Public sectors
banks. 02 Persons are strongly disagreed the interest rate charged by Private
sectors banks
 5.2.9.FAVOUR IN HOME LOAN
PUBLIC SECTOR BANK PRIVATE SECTOR BANK GRAND
TOTAL

S.B.I B.O.M TOTAL ICICI AXIS TOTAL

(A) BANK BANK (B)

STRONGLY 4 3 7 4 2 6 13
AGREE

AGREE
NETURAL
DISAGREE
STRONGLY
DISAGREE

TOTAL

FAVOUR IN HOME LOAN

30

25

20

15

10

S.B.I. B.O.M TOTAL ICICI AXIS BANK TOTAL

STRONGLY AGREEAGREENETURALDISAGREESTRONGLY DISAGREE

 Interpretation:

 Total numbers of respondents are 50.

 07 Persons are strongly agreed the favor in home loan in Public sectors banks.
 06 Persons are strongly agreed the favor in home loan in Private sectors banks.
 04 Persons are agreed the favor in home loan in Public sectors banks.
 08Persons are agreed the favor in home loan in Private sectors banks.
 10 Persons are neutral the favor in home loan in Public sectors banks.
 10 Persons are neutral the favor in home loan in Private sectors banks.
 03 Persons are disagreed the favor in home loan in Public sectors banks.
 01 Persons are disagreed the favor in home loan in Private sectors banks.
 1 Persons are strongly disagreed the favor in home loan in Public sectors banks.
No Persons are strongly disagreed the favor in home loan in Private sectors
banks.
 CHAPTER 4:

FINDING, SUGGESTION AND CONCLUSION

 6.1 INTRODUCTION:

The study on “COMPARATIVE ANALYSIS OF HOME LOAN SCHEMES OF

PRIVATE AND PUBLIC SECTOR BANKS WITH SPECIAL REFERENCE MIRA
BHAYANDER REGION” is based on analytical research methodology.

The researcher has finely has used primary as well as secondary source of data
collected and same is being analyzed with different tools and techniques for
interpretation and methodological finding of the very study. This topic will give the
brief summary of finding and researcher suggestion and recommendation related to
area of his study.

6.2 FINDING:

 It is observed that ICICI bank has preferred ‘the door step service’ and sanction ‘TAT
services for loan’ but Bank of India has preferred ‘attractive interest rate’ and Kolhapur
Urban Cooperative Bank has preferred to ‘easy and minimum documentation’.
 It is observed that majority of the borrowers are government servant (34%) because
government servant get good salary and they have permanent job.
 A term of loan for all the banks is 10 to 20 years, which is uniform.
 Majority of the borrowers were aware of the rate of interest of the Public sectors Bank.
 As majority of the borrowers opined that bank rate of interest is high; they are
borrowing loan from private and cooperative bank but other borrowers opined
average or low interest rate, it means they have taken loan from nationalized bank.
 Non-acceptance of application for loans without furnishing valid reasons to the
applicant.
 Delays in sanction, disbursement or non-observance of prescribed time schedule for
disposal of loan applications by Public sectors Banks
 Non-adherence to the provisions of the fair practices code for lenders as adopted by
the bank or Code of Bank’s Commitment to Customers, as the case may be.
 The Home Loans application/sanction procedure is lengthy & tiresome. Too much of
time is spent in Documentation & frustrations of setting wrong document
expectations
 (Total of 15-20 sets of documents are required).Self attested documents need to be
submitted on Final Application & forwarding online scan copies are Not entertained.
 No Transparency in Reasons for Rejecting Home Loan Application. Prolonged Delay
in Taking Sanction Decision. Non-Refund of Processing Fee.
 Housing Finance Institutions Take high amount as Processing, Administration,
Conversion fee and other charges like prepayment / Foreclosure penalty. (Most of the
times, applicants are Not aware of these charges, until charged.)
 Delay in Loan processing/sanctioning time especially with reference to Public Sector
Banks.
 There is no transparency & Common Grounds in Lending practices. All Banks have
their credit appraisal departments, their own Sanction / Disbursal process,
Requirement for documentations & their own Service Charges.

 Public sector bank has better consumer related loan policies than private banks. In the
long term, you would save a lot on interest with Government sector bank.

 At the time of giving loan, bank should follow RBI guidelines. Bank should consider
all guideline. Before sanctioning the loans and check the financial position of the
borrowers.
 Bank should provide better supplementary services like door step service, sanction
and disbursement to create more good relationship in society.
 The bank should implement advertising strategy and should consider more on Medias
like T.V, Magazines and Trade Fair etc. for awareness in people, and for expanding
turnover of the bank.
 The rate of interest of the bank should be less as per the borrower’s convenience; this
will help to increase the members of the bank so that bank’s customer base will
increase.
 The bank should arrange the visit to borrowers’ units and see whether the loans are
used properly for the purpose or not.
 The require observance of Reserve Bank Directives on interest rates.

Given details about bank hidden charges like Conversion Fees, MODT Charges
(Memorandum of Deposit of Title Deed), Check Date on Disbursement Cheque,
Changing Loan Tenure, Copy of Original Property Documents, Legal charges etc.

The customers also prefer a bank with good internet banking facilities.
The penetrate in the rural market.

A couple of banks have a facility, which allows borrowers to park their additional
funds in the loan accounts. “This will reduce the interest proportionately from the
principal amount for the time that the amount was parked.

The every borrower has to pay some money from his own pocket while buying
a house. Try to pay as much as possible as down payment. This will reduce
your interest paid on the principal.

Whether it is for a fresh loan or for a balance transfer. Enquire in all the banks
before you finalize.

It is important to have a score of 750 plus to get attractive rate of interest on your
Home loan. Civil data indicate that 80% of the home loan approvals are given to
customers.
6.3 CONCLUSION:

The housing sector plays an important role in any economy. As extensively

documented in empirical literature any shock to the housing sector significantly
impacts consumption and economic growth. Spain and the US are classic cases where
the crisis erupted fromthe housing sector and even after half a decade, economic
recoverythough started, continues to be sluggish.

It is useful for other private sector and Public sector banks also in formulating their
policies regarding launch of new banking product, in order to reach the level of
success achieved by these two banks. It also point out reasons for dissatisfaction
among bank customers and provide meaningful solution to their problems. The study
conducted will help the private Sector Banks and Public Sector Banks in addressing
the marketing problems and difficulties faced by these banks while marketing their
services to customers. The study also helps in solving the problems faced by the
customers and the effective implementation of marketing strategies of private sector
and Public sector banks.

In India, housing generally embodies lifetime savings of many individuals and

therefore the government, state and Centre, needs to be sensitive to housing sector. In
the absence of any regulator/ supervisor for the housing sector, many practices in the
housing sector, including financial, are non-transparent. There is need to bring parity
in the housing market by having similar rules and regulations governing these players,
and standardization of the products, including lease agreements that are being finally
offered to the consumer. Housing, being a state subject, there is a need to make and
strengthen the new and existing laws, preferably, at the state level. Thus, this would
also imply that there is a need for a regulatory and supervisory body on housing sector
both at the Centre and States.

Due to rapid urbanization, state governments will need to be active in urban and town
planning, to avoid unplanned growth and damage to natural and ecological balance
specific to each state. To ensure planned urbanization, there is a need for active town
planning, undertaken at the state and town level and aggressively implemented across
the state, to avoid congestion, traffic problems and slums; allocate land for recreation,
parking facilities, and garbage disposal; facilitate arrangements for sewerage, and
sanitation; help design buildings, both residential and 37 office, which are
environmentally friendly and conserve energy; ensure allocation of land for schools
and colleges; higher occupancy of houses for EWS and LIG; evaluate the need for
unused airports, large prisons and sprawling cantonments in the heart of mega cities;
and optimal use of land in terms of roads, parks and green cover.
 CHAPTER – 5

BIBILIOGRAPHY
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