01-06-2012, 11:10 AM
HDFC BANK
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OBJECTIVES OF STUDY
Home loans have become those stronger foundations for people who want to own a home. The main objectives of the study are as follows:-
1) The main objective of this study is to know the Customers perceptions about home loans of HDFC housing development finance corporation LTD.
4) 5) To make comparative study of Disbursement of home loans by Commercial banks.
6 To study the satisfaction level of customers about home loans.
8) To study the problems faced by customers in obtaining the home loans.
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2.1 PURPOSE OF THE STUDY
The main purpose of the study is as follows:-
• To know the ideas of customers about home loan products and services.
• To study the satisfaction level of customers about home loans.
• To study the problems faced by customers in obtaining the home loans.
• To learn about various aspect of HDFC home loan ltd.
2.2 SCOPE OF STUDY
The Indian housing finance industry has grown by leaps and bound in few years. Total home loans disbursements by banks have raised which witness’s phenomenal growth from last 5 years. There is greater number of borrowers of home loans. So by this study we can find out satisfaction level of customers and problems faced by them in obtaining home.
RESEARCH METHODOLOGY OF THE STUDY
RESEARCH METHODOLOGY:-
3.1- RESEARCH DESIGN:-
This project is based on exploratory study as well descriptive study. It was an exploratory study when the customer satisfaction level was studied to suggest new methods to improve the services of HDFC LTD in providing home loans and it was descriptive study when detailed study was made for comparison of disbursement of home loans by commercial banks.
3.2 – SOURCES OF DATA :-
To fulfill the information need of the study. The data is collected from primary as well as secondary sources-
A - PRIMARY SOURCE:-
Sample size;-
For the questionnaire I have taken the sample size of 100 customers of HDFC LTD.
B – SECONDARY SOURCE:-
It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the company’s database and website of the company.
3.3- SAMPLING:-
Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study.
SAMPLE SIZE:-
Large sample gives reliable result than small sample. However, it is not feasible to target entire population or even a substantial portion to achieve a reliable result. So, in this aspect selecting the sample to study is known as sample size. Hence, for my project my sample size was 100.The Sample Size consists of both the Professional and Business class people. IT peoples, Doctors, Jewelers, Timber Merchants & Real estate Agents are taken as Sample.
SAMPLING TECHNIQUE:-
Random sampling technique was used in the survey conducted.
TOOLS OF ANALYSIS:-
Data has been presented with the help of bar graph, pie charts, line graphs etc.
PLAN OF ANALYSIS:-
Tables were used for the analysis of the collected data. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. Percentages and averages have also been used to represent data clearly and effectively.
3.4 DATA COLLECTION INSTRUMENT DEVELOPMENT:-
The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected.
Literature Review
• After going through pervious studies of Home loans I came to conclude that-
• There is growth of home loans after 2001.
• Home loans have an inverse relation with interest rates i.e. when interest rate low the demand of home loans increase. (Ojha 1987)
• People are going more towards home loans than private mortgage insurance. (Berstain 2008)
• Government taking various steps to encourage people to go toward home loans. (Haavio, Kauppi 2000)
• Growth of home loans are due to increase of living standard of people, shifting from joint family to nuclear family .(Lacourr, Micheal 2007)
• There are some problems also attach with these home loans such as time i.e filling of application of loan to closing ,people have their own specified needs from these homeloans which are not fulfilling. (Lacour Micheal 2006).
• SBI provide a very low interest rate on home loans as compared to other banks.(SBI May 2000)
Now after this conclusion the details of reviews are below-
Berstain David (2009) examined in his study taken from 2001 to 2008 that in this period there is increase use of home loans as compared to private mortgage insurance (PMI).he have divided his study into four sections. Section 1 describes why people are going more for home loans than PMI. the main reason for this that now home loans market provide Piggybank loans for those people who don’t have 20% of down payment. Section2 tells the factors responsible for the growth of home loans and the risks on shifting toward home equity market without any PMI coverage. PMI can protect lenders from most losses up to 80% of LTV and the absence of PMI will result in considerable losses in an environment. Section 3 tells the measures in changes of type of loans. For this he have taken the data from the 2001 and 2007 AHS a joint project by HUD and Census The result of this analysis presented in Table One reveal a sharp increase in the Prevalence of owner-occupied properties with multiple mortgages among properties with Newly originated first mortgages. Section 4 describe the Financial status of single-lien and multiple-lien households and for this he have taken the survey of consumer finance and show that financial position is more weaker in multiple loans than the single loans.
Vandell, Kerry D (2008) analysis the sharp rises and then suddenly drop down home prices from the period 1998- 2008. changes in prices are for the reasons as such economic fundamentals , the problem was not subprime lending per se, but the Fed‘s dramatic reductions, then increases in interest rates during the early- mid-2000 , the housing ―boom was concentrated in those markets with significant supply-side restrictions, which tend to be more price-volatile; he problem was not in the excess supply of credit in aggregate, or the increase in subprime per se, but rather in the increased or reduced presence of certain other mortgage products.
La courr, Micheal (2007) analysis in his study the factors affected the increase in the level of Annual percentages rates (APR) spread reporting during 2005 over 2004. The three main factors are changes in lender business practices; (2) changes in the risk profile of borrowers; and (3) changes in the yield curve environment. The result show that after controlling for the mix of loan types, credit risk factors, and the yield curve, there was no statistically significant increase in reportable volume for loans originated directly by lenders during 2005, though indirect, wholesale originations did significantly increase. Finally, given a model of the factors affecting results for 2004-2005, we predict that 2006results will continue to show an increase in the percentage of loans that are higher priced when final numbers are released in September 2007.
La cour Micheal (2006) examined the home purchase mortgage product preferences of LMI households. Objectives of his study to analysis the factors that determined factors their choice of mortgage product, is different income groups have some specified need to met particular product. The role pricing and product substitution play in this segment of the market and do results vary when loans are originated through mortgage brokers? For this they have use the regression analysis and the results are high interest risk reduce loan value. Self employed borrower chooses reduce documented loans than salaried workers. Use of this product type seems to be more prevalent among borrowers with substantial funds for down payment and better credit scores. In case of pricing Multi families requires price premium and larger loans carry lower rate. And the role of time, particularly, the time required for the loan to proceed from application to closing it is find that government lending taking the longest time and Nonprime loans the shortest time. Multifamily properties take longer time in closing. And during peak season take longer time to close. And for last objective it is find that broker originated loans close faster. The effect of mortgage brokers on pricing and other market outcomes is fertile ground for additional research.
Dr. Rangarajan C. (2001) said that the financial system of India built a vast network of financial institutions and markets over times and the sector is dominated by banking sector which accounts for about two-third of the assets of organized financial sector.