A

Comprehensive Project Report

On

“A STUDY ON CONSUMER PERCEPTION AND

SATISFACTION TOWARDS HOME LOAN”

HOME FIRST FINANCE COMPANY

Submitted To

L. J. INSTITUTE OF MANAGEMENT STUDIES (729)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
IN
GUJARAT TECHNOLOGICAL UNIVERSITY
UNDER THE GUIDANCE OF

FACULTY GUIDE:
Dr.RAMZAN SAMA
ASSISTANT PROFESSOR

SUBMITTED BY:
RAJPUT ROSHAN (177290592116) BATCH : 2017-2019

1
 Student’s Declaration

I hereby declare that the Summer Internship Project Report titled “A STUDY ON
CONSUMER PERCEPTION AND SATISFACTION TOWARDS HOME LOAN” in
HFFC INDIA LTD. is a result of my own work and my indebtedness to other work
publications, references, if any, have been duly acknowledged. If I am found guilty of
copying from any other report or published information and showing as my original work, or
extending plagiarism limit, I understand that I shall be liable and punishable by the
university, which may include ‘Fail’ in examination or any other punishment that university
may decide.

Enrollment No. Name Signature

177290592116 ROSHAN RAJPUT

Place: Ahmedabad Date :

2
 Institute’s Certificate

“This is to Certify that this Comprehensive Project Report Titled “A STUDY

ON CONSUMER PERCEPTION AND SATISFACTION TOWARDS HOME LOAN”
is the bonafide work of Roshan Rajput (177960592116), who has carried out
his / her project under my supervision. I also certify further, that to the best of
my knowledge the work reported herein does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred on
an earlier occasion on this or any other candidate. I have also checked the
plagiarism extent of this report which is ……… % and it is below the
prescribed
limit of 30%. The separate plagiarism report in the form of html /pdf file is
enclosed with this.

Rating of Project Report [A/B/C/D/E]: ______

(A=Excellent; B=Good; C=Average; D=Poor; E=Worst)
(By Faculty Guide)

Dr. RAMZAN SAMA

(ASSISTANT PROFESSOR)

DR. SIDDARTH SINGH BIST

(DIRECTOR)

3
PREFACE
“A JOURNEY OF THOUSANDS MILES BEGINES WITH ONE
STEP”

Now a day with the rapid growth of technology world becomes

smaller day by day and to stand with this world it is necessary to have
a practical knowledge of any subject instead of any theory.

Practical knowledge is important everywhere, like a person can‘t

learn driving by reading thousands of books on it. There should be a
practical driving knowledge.

Similarly management student can‘t learn management without going

in real business field. Then he/she can know about the business
problem as well as market situation, only theoretical knowledge is not
the sing of management training practical knowledge also hold an
equal importance.
As a part of the MBA Circular and in order to gain practical Knowledge in the
field of management, we are required to make a report on “A STUDY ON
CONSUMER PERCEPTION AND SATISFACTION TOWARDS HOME
LOAN” At HFFC
The Basic Objective behind doing this project report is to get

knowledge tools of different tools of marketing

4
ACKNOWLEDGEMENT

I am grateful to L. J. Institute of Management Studies for giving me such an

amazing opportunity; The Summer Internship Program. Because these 6 weeks
training program is not only the corporate world experience but also an up
bringing from books to the corporate world.

This project bears imprint of many people and it really gratifies me to

recognize there assistance in it. My biggest gratitude goes for Mr. Prasant
Gajaria (Regional Manager, Gujarat) and Mrs. Nikita Desai (Area
Customer Service Manager) and Mr. Happy Prakash Pandey (Branch
Manager of Naroda, Ahmedabad) and the staffs of HFFC, who let me carry
out my project in their organization, also thanks for their fantastic cooperation
during the entire project.

I am thankful to our Director Dr.P.K.Mehta, Dean Dr. Siddharth

Bist & Faculty guide Dr. Ramzan Sama of L. J. Institute of
Management for providing such an opportunity to work with
HFFC.

Thank you

5
 Table of Contents

CHAPTER PAGE
CONTENTS
NO. NO.
 Executive Summary 7
1 Introduction of Home Loan Industry 8
1.1 Housing Market in India 9
1.2 National Housing Bank(NHB) 11
1.3 Indian Home Loan Industry 11
1.4 Introduction of HFFC 17
1.5 Mission 18
1.6 Core Value 18
1.7 Management Of HFFC 19
1.8 Organization Structure 20
1.9 Company Journey 21
1.10 Management Information System 22
1.11 Customer of the Company 23
1.12 Benefits of the company 24
1.13 About the Products 27
1.14 Pradhan Mantri Awas Yojana 28
2 Literature Review 29
3 Research Design 32
4 Data Analysis& Interpretation 36
5 Major Findings 49

6 Contribution & Learning 52

7 Recommendation 56
8 Conclusion 58
9 References 60
10 Annexure 62

6
EXECUTIVE SUMMARY

 Everybody wants to own a home. Person gets shelter in the home to take rest and feel
comfortable. Many commercial banks and financial institutions give loan for home to
the people who want to own a home. To attract consumers, banks provide home loans
at cheaper rate. Currently banks offer cheapest loan for homes, as a gesture of
customer friendly attitude. The present study was undertaken with the intent to
investigate after examining the literature reviewed and noticed that their exit gap in
terms of customer perception towards the home loan disbursed by banks.
Accordingly, the problem of the study focuses on customer views towards the housing
loan schemes of the bank. An attempt has also been made for the study of banks
delivery and disbursement of loan leading to customer satisfaction.

 For any emerging economy, development of the housing sector has its own
challenges. The biggest of these challenges is access to finance. While investment in
real estate is an easy candidate for borrowing, real estate lending is more opportunity-
based. In India, access to finance for housing needs is largely concentric and focused
at higher income groups, as that is the sector where there are formal evidences of
income such as salary slips or income-tax returns. Since lenders tend to lend to sectors
where lending is the easiest, the lower segments of the population pyramid will
remain unserved or underserved, if the system was left entirely to itself. Therefore,
there is a need, in every financial system, to enable access to finance by lower
segments of the population pyramid.

 While the upper middle-income segment is well-served by banks and mortgage

lenders, the lower middle-income segment has low or no access to banks for mortgage
finance; creating a huge demand in this segment and lack of access of finance. The
fact that the upper segments of the pyramid are well-served is evident from the highly
competitive mortgage lending rates prevailing for the sector. There is also a much
longer way to travel in terms of ensuring the availability of housing finance to low
income to middle income groups.

7
 CHAPTER 1

INTRODUCTION OF
HOME LOAN INDUSTRY

8
HOUSING MARKET IN INDIA

 India has recorded increased demand for housing in recent years, mainly in urban
areas, consequent to the financial sector reforms in 1991 resulting in higher growth
rates and income levels. The increased demand is based on increasing levels of
income and savings, urbanization, emerging of a younger earning age group, decrease
in the average size of household and nuclearization of families.

 There was increased demand for commercial and residential space in

metro/surrounding areas due to phenomenal growth in sectors like retail, information
technology (IT); IT enabled services (ITES) and business process outsourcing (BPO)
services. This boom in demand was aided by easy availability of housing finance, and
favorable tax regime. The flow of money through foreign direct investment (FDI) and
from non-resident Indians (NRIs) also contributed to the growth of the sector. The
increase in prices was not only restricted to urban areas but was also existent in rural
areas, where prices of land close to the highways and city limits recorded phenomenal
increases.

9
NATIONAL HOUSING BANK

 National Housing Bank has been playing an important role in regulating and
supervising the housing finance companies.
 In recent years, especially since 2001, a number of new players have entered the
housing finance market with competitive offerings which have helped increase the
demand for housing loans.
 These housing finance companies/banks have been passing on the benefit of lower
cost of funds to customers.
 Most of these financing institutions, besides simplifying the process of availing loans,
have also introduced new products and variants targeted at specific customer
segments.

10
INDIAN HOME LOANS INDUSTRY
Indian Home loans industry is growing at a fast pace of 30% per annum, which is shown in
the statistics with average ticket size (loan size) and Amount disbursed is rising every year
the opportunities have become more dominant for different organization in India. The
demand drivers are fast growing middle class population, rise in working women workforce,
bigger aspirations of youth, Tax saving, Transparency in the real estate market.

ADVANTAGES OF HOME LOANS:-

Appealing Interest Rates:-
For increasing their customers’ base and to help the customers, many attractive rates of
interest are offered by the banks to their customer. According to customers need and to
facilitate home loans are provided on either fixed or floating rates by many banks.

Assistance in Owning a Home:-

Customers, for owning a home, are provided by technical and financial assistance by the
banks.

No Need of a Guarantor:-
Some banks have relieved their customer to find a guarantor for availing the home loan.
Now-a-days commercial banks have liberalized their laws for the customers to avail home
loans. The guarantor is no more required by the banks to get a loan sanctioned.

Door to Step Services:-

For the benefit of the customers and considering the present busy life of the customers, many
banks provide doors to step services to the customers from preliminary level till the
disbursement of the home loan. For example, Union Bank of India and ICICI Bank provide
doors to step services to the customers.

11
Loan period:-
According to the loan amount and the creditability of customers many banks provide a longer
period for repayment of loan amount, i.e. up to 15-20 years as maximum loan tenures, to
lessen burden on customers to repay their home loan.

Free Accidental Death Insurance:-

A number of banks also propose free accidental death insurance to the customers together
with the housing loans for their benefit. Such home loans benefits have become so popular
among customers that anyone who could not afford to buy a house can now buy it with a
home loan, thus making their dream of owning a home become true.

DISADVANTAGES OF HOME LOANS:-

Interruptions in Processing of Home Loan
Several times the process of providing home loans gets delayed, because of interruptions in
completion of various formulations. As a result, customers are weakened mentally and
financially as well.

Fluctuating interest rates

Due to one or other reasons, at different intervals, floating rates fluctuate. Such fluctuations
lead to increased rate of interest and thereby increase the price of home loans.

Higher Cost of Processing

A high processing fee is charged by the public sector banks for sanctioning home loans.
Serious charges at different levels are levied from the customers to carry out the
requirements. Consumers are often deprived of availing home loan benefits, if they are not in
a position to pay such charges.

Obstructions in home loan disbursement

For disbursement of home loan amount, a customer has to face a lot of problems. Home loan
disbursement to the customers gets delayed customers, owing to the legal formalities
involved, hence causing obstructions in the way of the customers to get a home loan. These

12
are a few disadvantages or limitations of availing home loans. A few banks charge high
installments for repayment of the home loan amount, thereby causing problems to customers.
A good and prompt service to the customers can remove these limitations.

Home loans disbursement

The every bank has its own procedure to disburse the loan amount among customers. After
choosing your right home, the next step is disbursement of home loans. The loan amount is
disbursed after identifying and selecting the purchased property or home and thereafter
submitting the necessary legal documents. In the disbursement of home loans a clear title and
full verification to ensure that a person has full rights on his house.

13
CONDITIONS REGARDING CO-APPLICANTS

All Housing Finance Institutions set down criteria as to who can be the co-applicants. Co-
applicants to the loan will be co-owners of the property. Minors are not permitted to be as
either co-owner or as co-applicants by these institutions as per law, as they cannot enter into a
legal contract. Even friends or relatives who are not in blood relations are also not permitted
to take a property jointly. However, to get a higher loan income of co-applicants can be
clubbed together for eligibility. A Table clarifying co-applicant’s acceptability of relationship
for income clubbing is given below:

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

Husband-Wife: - Income of husband-wife can be clubbed.
Parent - son: - It can be clubbed if only son is there but not if any male sibling exists.
Brother-Brother: - If they plan to stay together in the new property and are currently staying
together, only then their income can be clubbed for availing home loans.
Brother-Sister: - No clubbing-is possible.
Sister-Sister: - No clubbing is possible.
Parent-Minor- Child: - No clubbing is possible in this case also.

14
CHARGES APPLICABLE TO AVAIL HOME LOANS: -
a) Processing fees:-
First of all is the processing fee. This is a charge that is levied by most the housing finance
institution or banks. It is a percentage on the sanctioned loan amount and is normally paid
When the application form is submitted. Instead of a percentage, some homes loan financial
institutions also charge a particular fee according to the loan amount. The fees paid in excess
is adjusted at the time of submission of application with the charges, when a lower amount is
sanctioned, which one makes to the financial institutions. The processing fee is refunded by
most of the financial institutions, in case of rejection of the loan application.

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

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

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

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

15
f) Stamp Duty and Registration Charges:-
The Stamp Duty and Registration Charge are levied on to customer by housing finance
institution/banks, in case of registered mortgage, which varies from state to state depending
on the state laws where one buys a property.

g) Charges on Personal Guarantee:-

Housing finance institution/banks demand for personal guarantees from the customers.
Charges on stamping of personal guarantee given by the customer are also recovered from the
customer.

h) Cheque Bounce Charges:-

Housing finance institution/banks levy a nominal charges on the customer whenever a
cheque, through payments is made to housing finance institution/banks, get dishonoured.

i) Delayed payment charges:-

If the customer delays the payment of instalments beyond the due date, housing finance
institution/banks charges for the delayed payment from the customer.

j) Additional charges:-
Most housing finance institution charge a particular percentage on the delayed payment.
When a customer fails to clear the dues within a stipulated time frame these charges are
levied.

k) Incidental charge:-
When a representative from housing finance institution/banks is sent for collection of
outstanding dues, incidental charges are payable from the customer which is normally
charged at an even rate per visit. Most housing finance institution/banks levy these charges.

l) Prepayment Charges:-
When a customer makes a part prepayment or a full repayment of the loan, penalty of
prepayment charges is charged by housing finance institution/banks. This is levied only on
round sum payments and not on the EMIs that is paid by the customer.

16
 INTRODUCTION OF HOME FIRST FINANCE
COMPANY INDIA PVT. LTD.(HFFC)

 Home First Finance Company India Pvt. Ltd. is a dedicated Housing Finance
Company, established in 2010.
 It is registered with NHB (National Housing Bank) are the second largest players in
the housing market after commercial bank.
 HFFC was co-founded by former Mphasis Chairman, Mr. Jaithirth (Jerry) Rao and
former Citibank Consumer Banking Head, Mr. P. S. Jayakumar.
 It is a Housing Finance Company (HFC) set up to provide housing loans to buyers of
low-cost housing.
 It is serve the housing loan needs of mid and low-income borrowers, who are
currently unable to avail loans from Banks and HFCs due to lack of required
documents and employment in the unorganized sector.
 The company started operations in 2010 and a year later it raised funds from
Bessemer Ventures. Later, it attracted funding from Tata Capital Growth fund as well.
 First time buyers of affordable homes, are likely to have a number of queries
regarding various aspects of the home purchase process including obtaining a loan,
eligibility, documentation, repayment and so on. Some consumers may have questions
about ownership, registration and others that are not directly related to financing. We
address these apprehensions and handhold such consumers, as they make their
journey towards owning their home.

17
MISSION

 HFFC aims to serve the housing loan needs of low and middle income customers,
who are unable to avail loans from Banks and HFCs due to various factors.
 HFFC is focused on providing housing loans to buyers of affordable housing priced
between 5 lakhs and 30 lakhs.

CORE VALUE

18
 MANAGEMENT OF HFFC

FOUNDERS

Mr. Jaithirth Mr. P S

(Jerry) Rao Jayakumar

BOARD OF DIRCTORS

Mr. Sakti Prasad Mr. Manoj Mr. Akhil

Gosha Viswanathan Awasthi

Ms. Sujatha Mr. Aakash Goel

Venkatramanan

19
 ORGANIZATION STRUCTURE

Foundrs

Board of
Directors

Business Human Marketing & Customer

Operation Finance
Development Resource Promotion Care
Department Department
Manager Department Department Department

Area Head
Regional
Research Customer
General
Team Service
Manager
Manager

Customer
Branch
Service
Manager
Manager

Sales
Relationship
Execution
Manager
Officer

20
HFFC JOURNEY

2010
First Branch opened in
Bangalore

2011
First external fund raisea
with Bessemer Ventures

2013
Reached 1,000 Loans

2014
Turn Profitable

2015
Reached Customer
base of 5,000

And the journey

continues

21
 MANAGEMENT INFORMATION SYSTEM (MIS)

Salesforce.com is customer relationship management service. It is broken down into several

broad categories: Sales Cloud, Service Cloud, Data Cloud, Marketing Cloud, Community
Cloud, Analytics Cloud, and App Cloud with over 100,000 customers.

 The company uses Salesforce online software for daily operation activities.
 It provides companies with an interface for case management and task management,
and a system for automatically routing so it helps to manage customer portfolio.

22
CUSTOMER OF THE COMPANY

HFFC customers are:

 Young: More than 60% are less than 40 years old
 Have moderate income of about 25,000 p.m.
 Are typically educated up to high school or graduation. They have job skills that are
in demand and are easily employable
 Progressive: Want to provide better living conditions for their family
 Work in industrial units or small private companies or have small businesses

 They are credit worthy customers who are excluded from the financial system due to
various reasons.

23
BENEFITS OF THE COMPANY

24
25
26
PRODUCTS

No. Product Name Interest Rate

1 Home Loan for Self-Employed 12.90 to 15 %

2 Home Loan for Salaried 11.90 to 14%

3 Home Loan for NRI - Self Employed 14.50 to 15%

4 Home Loan for NRI – Salaried 13.50 to 14%

4 Loan Against Property 17 to 18 %

5 Shop Loan 17 to 18 %

27
Pradhan Mantri Awas Yojana

The Hon’ble President of India, in his address to the Joint Session of Parliament on 9th June,
2014 had announced “By the time the Nation completes 75 years of its Independence, every
family will have a pucca house with water connection, toilet facilities, 24x7 electricity supply
and access.”

Hon’ble Prime Minister envisioned Housing for All by 2022 when the Nation completes 75
years of its Independence. In order to achieve this objective, Central Government has
launched a comprehensive mission “Pradhan Mantri Awas Yojana – Housing for All
(Urban)”.

The mission seeks to address the housing requirement of urban poor including slum dwellers
through following programme verticals:

• Slum rehabilitation of Slum Dwellers with participation of private developers using land as
a resource
• Promotion of Affordable Housing for weaker section through credit linked subsidy
• Affordable Housing in Partnership with Public & Private sectors
• Subsidy for beneficiary-led individual house construction /enhancement.

 I gathered these information these guildlines from the report which is issued by
Ministry Of Housing & Urban Poverty Alleviation, Government Of India

28
 CHAPTER 2

LITERATURE REVIEW

29
  Here, during our management course I referred few books and magazines for
obtaining and understanding. It was also helpful in this research. The following are
important researches are helpful in this research.

1. Mr. Krishnamachari conducts a research on “problem of the national housing

policy” in year 1980. The research stated that shelter is a basic human need and as an
intrinsic part of human settlement, is closely linked with the process of overall
socioeconomic development. Though a house is essentially a place of dwelling, it also
fulfills many important social needs of the household. Besides providing shelter, it
creates employment, generates voluntary salving and creates a conducive condition
needed for achieving crucial goals”

2. Haavio, Kauppi (2000) stated that countries where a large proportion of the population
lives in owner – occupied housing are experiencing higher unemployment rates. Than
countries where the majority of people live in private rental housing, which might
suggest that rental housing enhances labor mobility. In this paper, they develop a
simple inter temporal two region model that allow us to compare owner occupied
housing markets to rental markets and to analyze how these alternative arrangements
allocate people in space and time. Announced that it will offer loans for Rs. 2-10 lakh
at 12.5 percent the lowest rate offered by any housing finance provider, big brother SBI
has taken the rate war in the home loans category to new heights. This is because, apart
from the low rate, the interest on these loans is calculated on principal, which is
reduced every month unlike other housing finance companies which calculate interest
on annually reducing basis.

3. Brar Jasmindeep conducts a research on a “Performance of Housing Finance

Companies” in the year 2005.The main objectives of this research was to study the
operational performance, and the financial performance of the selected institutions. The
study covers three institutions viz. HDFC, LIC & PNB. The study is based on
secondary data that have been collected from the annual reports and web sites of the
institutions selected understudy. It covers the period from 1990-91 to 2002-03. The
performance of the selected institutions has been studied by using percentages,
compound growths rates and various ratios.

30
4. Vandell, Kerry D Analysis in the Year 2008 And He Analysis the Sharpe rise and
then suddenly drop down home price from the period 1998-2008. Changes in prices are
for the reasons as such economic fundamentals, the problem was not subprime lending,
but the dramatic reduction, then increases in interest rates during the early mid-2000,the
hosing – boom was concentrated in those market with significant supply side
restriction, which tend to be more price- volatile; and the problem was not excess
supply of credit in aggregate, or increase in subprime percentage but rather in the
increased or reduced presence of certain another Mortgage products.

5. Mrs. Aarti Varma (March 2015) in their research paper title “a study on customers
view and perception towards home loan” researched to know the perception of consumers
towards home loan segment. Taking 200 respondents and questionnaire as primary data
and using technique as random sampling method.

6. Mahabirsinghnarwal, Sushma rani, and Radhika in their research title “Customer

preferences for Home Loans” researched taking into consideration a sample of 200
respondents (100 each from Kurukshetra & Ambala District of Haryana) has been taken
into consideration, using convenience sampling method. The data has been collected
through survey – questionnaire, finalized after pilot survey. Data, thus, generated was
analyzed with the help of Factor Analysis (for customer preferences) and ANOVA (to
know difference among customer preference).

7. R.Abirami, K.A.Shreenivasan(April 2016) in their research title “a study of customer

satisfaction on housing finance with respect to sundaram bnp paribas home finance ltd”
taking frequency analysis as a tool and correlation analysis.

31
 CHAPTER-3

RESEARCH DESIGN

32
PROBLEM IDENTIFICATION
 Home is a dream of person that shows the quantity of efforts, sacrifices of luxuries,
and above all gathering funds little by little to afford one’s dream
.
 Banks, whether commercial or financial, provide home loans to the people who want
to have a home. Home loans are provided at a competitive rate to attract customers
towards them.

 Every bank has its own loan procedure among customers. Customers are presented
with a number of options to choose.

 Discovering customer preferences enables the banks to sell its services in advance and
use the collected information to make its services perfect before placing it on the open
market and develop an effective long-term marketing plan to gain competitive
advantage.

33
TYPE OF RESEARCH METHOD USED

Descriptive research:
 Descriptive research is used to describe characteristics of a population or
phenomenon being studied. It does not answer questions about how/when/why the
characteristics occurred.

SOURCES OF DATA

 Primary research is new research, carried out to answer specific issues or questions.
It can involve questionnaires, surveys or interviews with individuals or small groups.
 We used questionnaire method to collect primary data.

The list of secondary data source is as follow:

 Reserve Bank of India(RBI)’s bulletins
 Publication of Indian banks
 Association of home loan
 Indian institute of bankers
 Indian banking association
 National Banking Finance Corporation(NBFC)’s journal
 Various published and unpublished literature and websites

34
SAMPLING PLAN

 Sampling Method:

o Non-Probability Sampling: characteristic of non-probability sampling techniques

is that samples are selected based on the subjective judgement of the researcher,
rather than random selection (i.e., probabilistic methods), which is the cornerstone
of probability sampling techniques.
o Judgmental sampling method: As the name suggests, this involves collecting a
sample from somewhere convenient to you: the mall, your local school, your church.
Sometimes called accidental sampling, opportunity sampling or grab sampling.
o Sample Size: The unit of observation is the home loan companies in
AHMEDABAD, total sample size considered was 102 respondents.

35
 .

CHAPTER-4

DATA ANALYSIS
&
INTERPRETATION

36
PRIMARY RESEARCH

 My project aim to study the perception of consumers towards home loan and
their preferences for various parameters, for which I surveyed 100 perspective
customers.

GENDER PERCENTAGE (%) COUNT(N)

Male 76.47% 78
Female 23.53% 24
Total 100.00% 102

1 76.47% 23.53%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

Male Female

 In my survey the, Respondents constituted of 24% Female &76% Male.

 AGE GROUP

AGE PERCENTAGE (%) COUNT(N)

Less than 30 21.57% 22
30-40 43.14% 44
41-50 28.43% 29
50 & Above 6.86% 7
Total 100.00% 102
Mean 2.21
Standard Deviation 0.860

37
 100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
LESS THAN 30 30-40 41-50 50 & ABOVE

 Majority of my respondents (i.e.-43%) belonged to the age group of 30-40 years,

followed by the group of 41-50 which had 28% of my respondents, Where 22% were
below 30 and 7% were 50 and above.

INCOME SLAB PERCENTAGE(%) COUNT(N)

Less than 15,000 20.59% 21
15,000 to 24,999 41.18% 42
25,000 to 39,999 32.35% 33
40,000 & Above 5.88% 6
Total 100.00% 102
Mean 2.24
Standard Deviation 0.846

 INCOME SLAB(MONTHLY)
100.00%

80.00%

60.00%

40.00% 41.18%
32.35%
20.00% 20.59%

5.88%
0.00%
Less than 15,000 15,000 to 24,999 25,000 to 39,999 40,000 & Above

Series1

 Maximum respondents of my survey (41%) were in income group of 15000-

24999,followed by the group of 25000-39999 which constituted 32% of respondents,
21% were below 15000 and 6% were over and above 40000, I was therefore

38
 successfully able to tape the response of Middle class people, also my Mean is 2.235
which shows the same situation.

 OCCUPATION
OCCUPATION PERCENTAGE(%) COUNT(N)
Salaried 34.31% 35
Self Employed 45.10% 46
Professional 8.82% 9
Other 11.76% 12
Total 100.00% 102
Mean 1.98
Standard Deviation 0.954

OTHER 11.76%

PROFESSI
ONAL
8.82%

SELF
EMPLOYE 45.10%
D

SALARIED 34.31%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

 Almost Half (i.e.45%) of the respondents were self-employed, followed by the

salaried class (34%),only 8% were professionals and 12% consisted of retired people
and housewife’s.
 So,In this survey we will easily know the perception of businessmen, who don’t have
any income proof which is essential required in some private & public bank.

39
 ACCOUNTING FOR INCOME

Cash & Bank Bank Cash

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

 As far as accounting for income stands, nearly 35% have receive in pure cash
income,22% have income deposited in bank account and majority(ie 42%)have a
combination of both. Moreover most respondents (ie-58%), agreed that they do
not file IT Returns ,a major reason why their loans are not easily processed.

40
 FROM WHICH SOURCE WOULD PREFER TO TAKE
HOME LOAN
100.00%
Series1
80.00%

60.00%

40.00%

20.00%

0.00%
PUBLIC BANK PRIVATE BANK NATIONAL OTHER
HOUSING BANK

 Nearly 48% agreed that they would like to go with Nationalized Banks, Owing to
various reasons like lower rate of interest as well Trust & Reputation. About 30%
choose private banks to be a better option on ground of faster processing and adequate
loan availability. On similar ground 18% opted for National housing banks and
remaining 4%suggested options like money lenders and relatives on grounds of
security and flexibility

 REASONS TO CHOOSE BANK FOR HOME LOAN

Other
7%
Lower Interest
Rate
Faster Processing 27%
21%

Trust & Adequate Loan

Reputation 22%
23%

Lower Interest Rate Adequate Loan Trust & Reputation Faster Processing Other

 Most of my respondents (I.e.-27%) attributed their choice parameter as the Rate Of

Interest,23% to the Trust & Reputation of the organization, The processing time was

41
 considered a major parameter by 21% respondents and Adequacy of finance by 21%,
Safety Flexibility Family Opinions also constituted of some reasons.

 HAVE YOU TAKEN HOME LOAN FROM FINANCE

COMPANY? [COMBINE]

IF YES, FOR WHICH PROPERTY PURPOSE YOU TOTAL

PARTICULARS TOOK HOME LOAN FROM
NEW RESELL RENOVA BALANC OTHE
PROPER PROPER TION& E R
TY TY REDEVE TRANSF
LOPMEN ER LOAN
T LOAN

Have you taken Yes 16 2 2 5 1 26

home loan from
finance company? No 0 0 0 0 0 76

TOTAL 16 2 2 5 1 102

 With the majority(I.e.75%) saying not to have opted for a home loan from a finance
company, The remaining 24% that said yes ,Have taken the same for new
property(69%),followed by balance transfer loan of nearly 12% ,Resale Property
and others standing at a tie of 8.5%,and only 3% Renovation and Re
Development.

 DO YOU HAVE YOUR OWN HOUSE?

100%
76%
71%
80%

60%

40% 29%
24%

20%

0%
Yes No

Yes No

42
  There was only a minor difference of 6% between respondents having and Not
Having their own house, and that of 8% between those who were Planning and not
planning to Purchase their own house

 WHICH WOULD YOU PREFER

Particular Percentage(%) Count(N)

Small Instalments 52.38% 55

Smaller Repayment Period 47.62% 50

Total 100.00% 105

Smaller
Repayment Period
48% Small Installments
52%

 On asking about the choice between smaller installments and small repayment period,
nearly 52% gave preference to the Former and 48% to latter.

 So majority people agreed that they will small installment with longer tenure which is
more flexible for them.

43
  AWARENESS OF SUBSIDY SCHEME “PRADHAN MANTRI
AWAS YOJANA”
100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
Yes No
Series1

 The Respondents seemed well informed, A greater number(71%) were aware of the
subsidy they are entitled to under “Pradhan Mantri Awas Yojana” ,owing to various
sources like advertisement’s ,Banks, Builder and other sources
 I also saw that the people don’t have their own house, they specially forced to buy
new home to take a advantage of subsidy scheme, the amount of advantage is up to
Rs.2,67,000.

 REASON TO CHOOSE FINANCE COMPANY FOR HOME

LOAN?

OTHER 3.70%

LACK OF
20.37%
DOCUMENTS
BUILDERS
27.78%
REFERENCES
EASILY
48.15%
AVAILABILI…

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

 Nearly 48% said that easy availability of finance was the major reason for choosing a
Finance company, The reference by builder stood at 28% ,Less Paper Work &
Documentation at about 20%,and 4% to other reasons

44
 FACTOR IS MOSTLY INFLUENCE YOUR DECISION FOR
HOME LOAN?

Other

Advertisem
ents &
Offers

Trust &
Reputation

Friends/Rel
atives

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Series1

 With regard to influencing factors, the influence of friends & Relatives stood at 35%
and Trust on the institution stood at 33%, Advertisements influenced about 22%
respondents ,and other factors like Loan requirement, Security & Convenience and
Time were given importance by 9% respondents.
 So, it is crystal clear shown as people believes in experience of others & they have
more trust on friends & relative rather than advertisement. They also consider trust &
reputation factor according to their perception.

 IMPORTANT OF VARIABLES INFLUENCING

CONSUMERS DECISION FOR HOME LOANS

 I identified 5 key factors which play a key role in decision making for a home
loan they were
1. Interest Rate
2. Fast & Efficient Service
3. Paper Work & Documentation
4. Reliability & Cooperation of bank employees
5. Goodwill & Transparency of the institution
 Respondents were asked to rate them on a Likert Scale from “Highly Important”
to “Highly Not important”, and the responses were as below

45
 1. RATE OF INTEREST

0%
4%1%

20%

75%

Highly Important Important Neutral Not Important Highly Not Important

2. FAST & EFFICIENT SERVICE OF THE BANK

10% 0% 15%

75%

Highly Important Important Neutral Not Important Highly Not Important

46
 3. PAPER WORK & DOCUMENTATION

0%
3%
16%

38%

43%

Highly Important Important Neutral Not Important Highly Not Important

4. RELIABILITY & BANK EMPLOYEES COOPERATION

5%0% 12%

42%
41%

Highly Important Important Neutral Not Important Highly Not Important

47
 5. GOODWILL & TRANSPARENCY OF INSTITUTION

5%0%

26%
26%

43%

Highly Important Important Neutral Not Important Highly Not Important

48
 Hypothesis Test
Test:- 1
H0: There is no significant association between Gender And Fast And
Efficient service of the bank.
H1: There is significant association between Gender And Fast And
Efficient service of the bank.

Gender Fast And 0.000 < 0.05 H1 accepted

Efficient
service of
the bank.

Fast And Efficient Service Of The Bank

Highly Neutral Satisfied Total

Satisfied

Gender: 1 6 20 45 71

2 11 0 20 31

Total 17 20 65 102

The analysis is based on significant association between Gender and Fast and Efficient service of the bank and
here the test used is chi-square.

As above table suggest the Pearson chi-square value is 0.000 which is less than 0.05 so that the null hypothesis
will be rejected.

So we can say that there is significant association between Gender and Fast and Efficient service of the bank.

49
Test:- 2
H0: There is no significant association between Gender And Reliability
and bank Employees Cooperation.
H1: There is significant association between Gender And
Reliability and bank Employees Cooperation.

Gender Reliability 0.006 < 0.05 H1 accepted

and bank
Employees
Cooperation

Reliability and Bank Employees Cooperation

Total

Dissatisfied Highly Satisfied Neutral Satisfied

13 9 32 17 71
Gender: 1

0 3 11 17 31
2

13 12 43 34 102
Total

The analysis is based on significant association between Gender And Reliability

and bank Employees Cooperation. and here the test used is chi-square.

As above table suggest the Pearson chi-square value is 0.006 which is less than
0.05 so that the null hypothesis will be rejected.

So we can say that there is significant association between Gender And

Reliability and bank Employees Cooperation.

50
Test:- 3
H0: There is no significant association between Gender And Goodwill
and Reliability of institution.
H1: There is significant association between Goodwill and
Reliability of institution.

Gender Goodwill 0.038 < 0.05 H1 accepted

and
Reliability
of
institution.

Goodwill and Reliability of institution.

Total

Dissatisfied Highly Satisfied Neutral Satisfied

16 9 14 32 71
Gender: 1

0 6 08 17 31
2

16 15 22 49 102
Total

The analysis is based on significant association between Gender And Goodwill

and Reliability of institution and here the test used is chi-square.

As above table suggest the Pearson chi-square value is 0.038 which is less than
0.05 so that the null hypothesis will be rejected.

So we can say that there is significant association between Gender and

Goodwill and Reliability of institution.

51
 CHAPTER 5

MAJOR FINDINGS

52
1. To develop our findings i surveyed nearly 102 people and their perception towards
home loan, about 78% respondents being male and 22% being female, most of
them belonged to the age of 30-40 years, majority of respondents being in the income
group of 15000-24999 followed by 25000-39999 helped us to study the perception of
people opting for affordable housing.
2. Almost half of them being self-employed, and were keenly interested to know about
the offer prevailing at the builder sites at the auspicious occasion of rath yatra and
guru purnima.
3. As far as accounting for income was concerned despite being self-employed the
accounting was in combination of cash and bank for the majority (ie-
42%),Whereas 22% had accounting in bank accounts, a major reason associated with
this was the Pradhan Mantri Jan Dhan Yojana ,which has opened the avenues of
banking for the lower classes and the recent Demonetization which has encouraged
banking transactions, as told by our immediate supervisor and boss
MsNeelimaVerma.
4. Documentation being a major reason why most of lower income groups fail to avail
from Nationalized banks, a major observation was 58% of respondents not filing
IT returns. Despite the fact that their preferences were nationalized banks owing to
various reasons major ones being lower interest rates, Trust & Reputation.
However, some gave greater importance to processing time and better service and
preferred private banks.
5. Rate of interest being a major parameter for home loan selection, other factors like
Trust & Reputation, processing time, safety & flexibility were given considerate
importance.
6. The recent implementation of the G.S.T has however increased at 18% the
ambiguity of interested respondents and builders regarding the Stamp duty which
shows higher charges implemented by government. We seen that many people
refused to pay high stamp duty where their house was booked before G.S.T Launch
date.
7. Pradhan Mantri AwasYojana,which has a credit linked subsidy scheme(CLSS)
in it,has served as a major attraction and tool for builders to sell flat. People are
somewhat aware of the benefit entitlement and a large segment is availing loans to
take benefit of subsidy the maximum being 2.67 lakhs. Even those capable of
buying home for cash are availing loans up to 20 years to get the full subsidy and

53
 simultaneously planning to repay the same once the subsidy reaches their account but
here Subsidy is subject to fulfilment of all the conditions.
8. Making a clear calculation of the interest they will pay and subsidy they will be
entitled to they are taking rational decisions after conserving the female members in
family not having a documented home on their own name.

54
 CHAPTER 6

CONTRIBUTION
&
LEARNING

55
CONTRIBUTIONS
 In the Initial days of my Job I went for the SWOT Analysis and competitive
analysis of the company, the major competitors of our company being Indiabulls,
Gruh Finance and Punjab National Bank.
 I approached some of the branches as mystery shoppers (Perspective Customers) in
order to get an idea of how our competitors operate and handle the clients,To know
what is our competitors current interest rate & benefits which our company
doesn’t provide to customers.
 The reason behind this analysis is to know the different strategies of competitors &
sales data of these competitors.
 Followed by which i operated for a few days from one of the largest affordable
housing project of our company ,Devnandan which is located in Naroda, it helped me
to learn how i am able to pitch the customers for home loan how we are to give
them an idea of the instalments and the tenure of their loan.
 After this i again approached as mystery shoppers to some of the other affordable
housing projects which is located at Naroda side to check if they are having tie ups
with any of our competitors and if they are offering any advice to take loans from
specific finance companies so that we could inform our bosses on perspective builders
for tie-ups with them, So here main reason was to target the other projects which
will be ready in upcoming years.
 The second phase of work The Marketing Campaign, where i had the maximum
learning began.
 The campaign began with putting up banners behind auto rikshaw with the
advertisements of HFFC providing affordable home loans without any income proof
that attracted many customers.
 And then we got tremendous response of customer we were getting back to back calls
from the customers regarding the home loan mortgage loans but some false inquiries
was about PL and Business loan that’s not our product by far
 It was a time where we got first hand experience of core marketing there were
times where people were very welcoming and showed keen interest in what we had to
offer ,clear there doubts and know more about the location , terms of finance, the rates
and range of flats available and what would be the documentation and income criteria.

56
 The subsidy available under Pradhan Mantri Awas Yojana served as a major
attraction which helped us to lure the candidates into visiting our site. We even
identified some “Hot Interested” customers so that we could keep a track and
follow up of their date of visit and interested in other properties.
 There were few incidences as well where some people expressed dissatisfaction on
ground of higher interest rates ,High Processing Fees, Location Problem and
property being far away from work places ,in response to which we offered them
prospective solutions at our level and tried to help them.
 After our regular visits we even kept called them for follow up’s and created leads in
our systems using with “Sales Force” so that we and our bosses can keep a track of
them and try to convert them into clients.
 The campaign continued for about more than two weeks which resulted into
mass walk-ins and calls, many customers who had interacted with us approached and
took details of the scheme whereas many successfully booked the flat and availed the
home loan .Our work also constituted of showing sample flats to the customer since
we were the financial partner at Pusph heights & Ambuja Avenue.
 The next few days were dedicated to continuously keeping track of the interested
customers so that our competitors don’t target them, for those who found the
housing scheme expensive we had a number of options in their respective areas for
which we invited them to office.
 I even worked at another site “Ambuja Avenue”, situated near narol for the same.
 Working at HFFC as employee under the guidance of my eminent bosses Mr
Prashant Gajaria, Mr Happy Prakash Pandey & Nikita Desai was one of the best
experience which helped to brush up our marketing skills, not only did I got an
opportunity to deal with Builders to learn the tactics of convincing but also got to
taste the challenges of hard core marketing by working at the Builder sites and
The Marketing Campaign as well. If it is one thing our immediate boss and our
Branch Manager Mr Happy Prakash Pandey taught us is that there are only 2E’s in
work either Excellence Or Excuses and for the achievers the latter is not an option.
 I successfully converted customers for home loan from that Marketing
campaign, So my bosses also appreciated us for my focus, hardworking, team
sprit & enthusiasm.

57
 CHAPTER 7
RECOMMENDATION

58
The following suggestions are strongly recommended:

 The company should concentrate heavily on attractive advertisements and various

promotional strategies like, giving pamphlets; put the hoardings and banners at
important locations.
 People should be educated by giving seminar in Business Conferences, installing
stalls in Business Exhibitions. And Company should conduct seminars in Educational
Institutions to provide information about company and its products.
 Company has to create a sense of security among the customers, because most of the
people fear about security.
 To broaden the customer base the vast middle income strata should be fully exploited.
 Simplify the procedure, reduce service charges & demand only the basis essential
proof.
 As a result of personnel survey conducted it was found that most of the customers are
in favour of higher amount of limits at lower rate of interest with lower instalment
with longer tenure.

59
CHAPTER 8

CONCLUSION

60
 Home First Finance Company Pvt. Ltd. is good reputation in Home loan market.
Due to New housing project in Ahmedabad, company has built good image among
the customer. The success factor of HFFC is hard work, discipline, co-operative
structure of its employees and it help to the company to achieve customer
satisfaction level. The company also maintains good relationship with its customers.

 The results and findings of this research study exemplifies the fact that an in - depth
market research has been conducted and all the objectives set for the research work
has been fully accomplished and the analysis is also performed to the maximum
extent possible.

 Working in HFFC is a great experience, Not only did I got an opportunity to apply
the concepts of marketing learned in the real field which helped me to brush on my
marketing skills, under the esteemed guidance of our leader and boss Mr Happy
Prakash Pandey, I underwent a vigorous marketing campaign and learned a great
deal as to how our company handles its potential customers to generate leads, a
learning which will help me a great deal in future

61
CHAPTER 9

REFERENCES

62
Bibliography
Econ2omic Times. (n.d.). Retrieved from www.economictimes.com
Home First Finance Company. (2017). Retrieved from
www.homefirstindia.com
Kotler, P. (2017). Marketing Management .
National Home Banking. (2017). Retrieved from www.nhb.org.in
Outlook Money. (2017).
Reserve Bank Of India. (2017, AUGUST). Retrieved from www.rbi.org,in
Scholar. (20117). Retrieved from www.scholar.google.com
Scribd. (2017, August). Retrieved from www.scribd.com
Sondhi, D. C. (2017). Research Methodology.
Web Reports. (n.d.). Retrieved from www.surveysystems.com

63
CHAPTER 10

ANNEXURE

64
QUESTIONNAIRE
1.Name: _______________

2. Gender

Male Female

3.Age

Less than 30. 30-40

41-50 50 & Above

4. Salary Slab(Monthly)
Less than 15,000. 15,000 to 24,999

25,000 to 39,999 40,000 & Above

5. Occupation

Salaried Self-Employed Other Profession

6. Do you file IT Return?

Always Often Never

7. Accounting for Income

Yes No

8. Would you take home loan from finance company?

Yes No

9. If yes, for which property purpose you took home loan from finance company?

New Property. Resell Property

Home Infrastructure & Development Loan 40,000 & Above

10. Do you have your own house?

Yes No

65
11. Do you have planning to purchase new house?

Yes No

12. Are you aware of Subsidy Scheme under “Pradhan Mantri Awas Yojana” ?

Yes No

13. You would prefer to take home loan from

Public Bank Private Bank

National Housing Bank Other Source

14.Which would you prefer

Smaller Investment Smaller Repayment Period

15.What is reason to choose finance company for Home Loan?

Lank of Finance Builder References

To take benefit of subsidy scheme Other, Please Specify_________

16. Why would you prefer the home loan bank?

Low Interest Rate Convenient Location

Reputation of the bank Prompt Service

Timely & Adequate Loan

17. Which feature do you like most in home loan bank?

Less Paper Work Simple & Fast Processing

Transparency Longer Repayment Period

Easy Repayable Installment

66
18. Which factor is influence you most for home loan decisions?

Friends/Relatives Trust in the Bank

Advertisement Exclusive Offers

19. LEVEL OF SATISFACTION TOWARDS SERVICE OFFERED BY HOME LOAN

BANK

VARIABLE HIGHLY SATIFIE NEUTRA DISSATIFIE HIGHLY

S SATISFIE D L D DISSATISFIE
D D
Rate of
Interest
Fast and
efficient
service of the
bank
Paper work
and
documentatio
n
Reliability
and bank
employees
cooperation
Goodwill and
transparency
of institution

67