Consumer perception towards home loan

A

Research Report Subject Code: 576221(76)

On

“Consumer perception towards Home Loan”

Submitted for partial fulfillment of requirement for the

award of degree

Of

Master of Business AdministrationOf

CHHATTISGARH SWAMI VIVEKANAND TECHNICAL

UNIVERSTY

BHILAI (C.G.)

Session 2012-14

Supervision By: Submitted by:Prof. Gazala Y. Ashraf Sujeet PanditAssistant Professor Roll

No.5057612094Faculty of Management MBA II Semester

Section – A

FACULTY OF MANAGEMENT

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY(Disha Education Society)

Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,

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Raipur (C.G.) 492007

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled

“Consumer perception towards Home Loan”, is based my own work carried out

during the course of my study under the supervision of Prof. Gazala Y. Ashraf.

I assert that the statements made and conclusions drawn are an outcome of the

project work. I further declare that to the best of my knowledge and belief that the project

report does not contain any part of any work which has been submitted for the award of

any other degree/diploma/certificate in this University or any other University.

__________________ Sujeet Pandit

Roll No.: 5057612094

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CERTIFICATE BY GUIDE

This to certify that the report of the project submitted is the outcome of the project

work entitled “Consumer perception towards Home Loan” carried out by Sujeet Pandit

bearing Roll No.:5057612094 & Enrollment No.:AK6995 carried by under my guidance and

supervision for the award of Degree in Master of Business Administration of Chhattisgarh

Swami Vivekananda Technical University, Bhilai (C.G), India.

To the best of the my knowledge the report

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Fulfils the requirement of the ordinance relating to the MBA degree of the

University and

iv) Is up to the desired standard for the purpose of which is submitted.

_______________________(Signature of the Guide)

Prof. Gazala Y. Ashraf Asst. Prof.Faculty of Management

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGYSatya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,

Raipur (C.G.) 492007

The research report as mentioned above is hereby being recommended and forwarded for examination and evaluation.

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CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled

“Consumer perception towards Home Loan”

Submitted by

Sujeet Pandit Roll No.:5057612094 Enrollments No.:AK6995.

Has been examined by the undersigned as apart of the examination for the award of Master of

Business Administration degree of Chhattisgarh Swami Vivekananda Technical University,

Bhilai (C.G.).

________________ __________________

________________ __________________

Name & Signature of Name & Signature of

Internal Examiner External Examiner

Date: Date:

Forwarded by

Dean

Faculty of Management

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ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and assistance from

many people and I am extremely fortunate to have got this all along the completion of my

project work. Whatever I have done is only due to such guidance and assistance and I would

not forget to thank them.

I respect and thank Prof. Gazala Y. Ashraf, for giving me an opportunity to do the project

work in Consumer perception towards home loan and providing us all support and guidance

which made me complete the project on time. I am extremely grateful to her for providing

such a nice support and guidance though she had busy schedule.

I would not forget to remember Prof. Suresh Pattanayak, Prof Rupesh Kr. Tiwari and all

faculty members for their unlisted encouragement and more over for their timely support and

guidance till the completion of our project work.

I heartily thank our internal project guide, Dr.R.S.Mohan, Dean , Department of

Management, for his guidance and suggestions during this project work.

I am extremely thankful to all those persons who have positively helped me and customers

who respond my questionnaire, around whom the whole project cycle revolves.

Name: Sujeet PanditRoll.No.: 5057612094MBA 2nd Sem 2nd SemesterSection-A

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PREFACE

This report presents the research, findings and recommendations resulting from the

project, “Consumer perception towards Home Loan”, supported by Prof. Gazala Y.

Ashraf and authored by the Dean. The objective was to compile and synthesize information

on the status of Consumer perception. In so doing, it lays the foundation for the development

of bank resources management decision support system that will facilitate scientifically

sound decision making. The involvement in this project reflects its long-term interest in

Consumer perception towards Home Loan management activities consistent with its mandate

to “promote the orderly, integrated and comprehensive development, use and conservation of

the loan. This report has benefitted from the significant input and collaboration of numerous

partners that comprised a Project Management Team (PMT). The findings and

recommendations of this report address data and information gaps and needs, and provide

valuable information for guiding the next steps in the process of developing a decision

support system. This report, and the project’s many associated components, provides a wealth

of information about the bank resources and associated policies.

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I. DECLARATIONII. CERTIFICATE BY GUIDE

III. CERTIFICATE BYTHE EXAMINERSIV. ACKNOWLEDGEMENTV. PREFACE

Sr. No. TITLE Page No.Chapter 1 1.1 Introduction 8 1.2 Objective of the Study 14 1.3 Scope & Limitations of the Study 15 1.4 Review of Literature 16Chapter 2 Product Profile 18Chapter 3 Research Methodology 21Chapter 4 Analysis and Interpretation 41Chapter 5 Finding and Suggestion 57Chapter 6 Conclusion 58 Bibliography

Appendix

INDEX

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1.1 Introduction

Over the last few decades the role of loan sector has undergone a paradigm shift. It is

widely recognized as an important aspect of the source of loan for the people and considered

it as a short and long-term investment.

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After zeroing down on my research area, I have collected information through only

primary. I had a constant discussion with consumer.

The objective of this report is to study “Customer Perception and Attitude towards home

loan”. For this survey was conducted through structured Questionnaire.

In today’s competitive business world every customer is significant for the lending

home loan. The customer expectations are very high so it should be kept in mind and offer

them best possible service.

The report deal with the conceptual background of home loan and over view of the

banks, the next part deals with research design of the study that is problem identification,

objectives and how the research was carried out. The outcome of the study shows that the

level of customer awareness towards Home Loan is good with the benefits and service what

they are giving and most of the people wants to go for investments.

Banks can start some good promotional activities to build its brand and to make

recognition by all the peoples in the market .The effective marketing channel with the

personal selling is an essential factor in influencing banks growth.

INDUSTRY PROFILE

The importance of financial institutions in the modern economy cannot be neglected. They

occupy a very important place in the field of commerce and industry of any country. They

are so important that modern business is certainly impossible without them and number

country can achieve commercial and industrial progress in the absence of sound financial

system.

These financial sectors have different products at different rates. The growing competition

between the financial institutions had made each of them to delight their customer rather than

satisfying them. The emergence of new generation private financial institutions has made the

entire financial sector tougher and much more competitive. They provide various services to

the customer to overcome the competition. Some of the major players in the sectors are:

1. CitiFinancial

2. ICICI bank

3. HDFC bank

4. PNB

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5. SBI and many more…

Financial institutions and their services offered:

ICICI bank:

ICICI Bank offers wide variety of Loans Products to suit the customer requirements. Coupled

with convenience of networks branches/ATMs and facility of E-channels like Internet and

Mobile Banking.

Home loan:

Attractive interest rates

Door-step service from enquiry stage till final disbursement

Can transfer the customer existing high-interest rate loan

Free personal accidental insurance

Special 100percentage funding for select properties

HDFC Bank: Home loan:

Anew home brings with it new hopes, joys and emotions. At HDFC, we have shared new

hopes, joys and emotions with over 26 Lakh customers. Every customer has a specific and

unique concern. Having earned an experience of 27 years in home loans, our home loan

product is customized to provide the customer solutions for the customer’s unique concern. Features:

• Maximum loan 85percentage of the cost of the property (including the cost of the land) and

based on the repayment capacity of the customer.

• Maximum Term 20 years subject to the customer’s retirement age.

• Applicant and Co- Applicant to the loan Home Loans can be applied for either individually

or jointly. Proposed owners of the property will have to be co- applicants. However, the co-

applicants need number be co-owners.

Adjustable Rate Home Loan under Adjustable Rate is linked to HDFC's Retail Prime

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Lending Rate (RPLR). The rate on the customer’s loan will be revised every three months

from the date of first disbursement, if there is a change in RPLR, the interest rate on the

customer’s loan may change. However, the EMI on the home loan disbursed will not

change*. If the interest rate increases, the interest component in an EMI will increase and the

principal component will reduce resulting in an extension of term of the loan, and vice versa

when the interest rate decreases. • Fixed Rate without money market conditions- Rate of interest will not change. with money

market conditions- Rate of interest will not change due to money market conditions for two

years from the date of first disbursement of the loan.

• Purchase of:-

O Flat, row house, bungalow from developers

O Existing freehold properties

O Properties in an existing or proposed co-operative housing society or apartment owner's

association

O First Power of Attorney purchases in Delhi for DDA flats allotted before 1992.

• Self Construction

Features

• Purpose

O External repairs

O Tiling and flooring

O Internal and external painting

O Plumbing and electrical work

O Waterproofing and roofing

O Grills and aluminum windows

O Waterproofing on terrace

O Construction of underground/overhead water tank

O Paving of compound wall (with stone/tile/etc.)

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O Existing Customer 100percentage of the cost of improvement

O New Customer 5percentage of the cost of improvement

• Adjustable Rate Home Loan

Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate

on the customer’s loan will be revised every three months from the date of first disbursement,

if there is a change in RPLR, the interest rate on the customer’s loan may change. However,

the EMI on the home loan disbursed will not change*. If the interest rate the interest

component in an EMI will increase and the principal component will reduce resulting in an

extension of term of the loan, and vice versa when the interest rate decreases. Fixed Rate

With money market conditions- Rate of interest will not change due to money market

conditions for two years from the date of first disbursement of the loan*. State Bank of India (SBI): ? HOUSING LOAN:

Home is where the heart is! At SBI, we understand this better than most – the toil and sweat

that goes into building/ buying a house and the subsequent pride and joy of owning one. This

is why our Housing loan schemes are designed to make it simple for the customer to make a

choice at least as far as financing goes!

Unique features: • Number cap on maximum loan amount for purchase/ construction of house/ flat

• Option to club income of the customer’s spouse and children to compute eligible loan amount.

• Provision to club expected rent accruals from property proposed to compute eligible loan amount

• Provision to finance cost of furnishing and consumer durables as part of project cost

• Repayment permitted up to 70 years of age

• Optional Group Insurance from SBI Life at confessional premium (Upfront premium financed as part of project cost)

• Interest applied on daily diminishing balance basis• Plus’ schemes which offer attractive packages with confessionals interest rates, margins and processing fee to Govt. Employees, Teachers, Scientists, Employees in Oil sector, Journalists (in select cities) etc.

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• Special scheme to grant loans to finance Earnest Money Deposits to be paid to

Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat

• Option for E-banking

Need for the study:

Assets are insured; because they are likely to be destroyed through accidental occurrences

such possible occurrences are called perils. Fire floods breakdowns, lighting, and earth

quakes etc. If such perils can cause damage to the asset the asset is exposed to that risk.

The risk only means that there is a possibility of loss or damage. The damage may or may not

happen. Insurance is done against the contingency that it may happen. There has to be an

uncertainty about the risk. Insurance is relevant only if there are uncertain. In the case of a

person who is terminally ill the time of death is not uncertain though not exactly known.

Insurance does not protect the asset. It does not prevent its loss due to the peril .The peril can

sometimes be avoided, through better safety and damage control management. Insurance only

tries to reduce the impact of the risk on the owner of the asset and those who depend on that

asset.

It only compensates the loose and that too, not fully. Only economic consequences can be

insured. If the loss is not financial insurance may not be possible.

1.2 OBJECTIVES

PRIMARY OBJECTIVE:

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Analyzing the customer’s PERCEPTION on home loans offered by banks.

SECONDARY OBJECTIVES:

1. To find out various types of loan availed by customers in market. 2. To identify various branches of banks from where customer have availed loans. 3. To evaluate the turnaround time for customer in availing their loans from banks. 4. To identify whether any procedure problem were faced by the customer in availing the loan. 5. To find out the preferred mode of repayment of customer with regarding their loans availed from banks. 6. To find out the most attractive features that attracted the clients to avail loan from banks. 7. To evaluate the customer satisfaction regarding various services offered at banks.

HYPOTHESIS:

Quite often a research hypothesis is a predictive statement, capable of being tested by scientific

methods that relates and independent variable to some dependent variable.

The following hypotheses were set in order to achieve the objectives.

There is no significant relationship between the purpose of investment in insurance

and the annual income.

There is no significant relationship between the risk taken while investing and the

amount invested.

There is no significant relationship between age of the respondent and the risk taken

by them while investing.

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1.3 SCOPE AND LIMITATIONS OF THE STUDY SCOPE OF THE STUDY

The scope of the study is to analyze the satisfaction level of home loan customers in and

around India. The study gathers information about rating the effectiveness of bank services,

rating and ranking the different features and services offered by the bank.

Primary data was collected from the existing loan customers and also non existing customers;

secondary data was collected from book manuals, magazines and websites. The study has

come out with valuable suggestions on basis of concrete facts, which help to frame its plan

and strategies to increase satisfaction level of the loan customers.

LIMITATIONS OF THE STUDY 1. The study is limited to all over India. 2. Because of the limited time, research is conducted with only 80 customers.

3. The data collected from the customer are qualitative in nature i.e., views, perception,

satisfaction, opinion etc., may change from time to time.

4. The data collected are primary in nature. Hence there is chance for a biased of

misleading respondent from the customer.

5. On few occasions customer were reluctant to give information, because they were

busy.

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1.4 REVIEW OF LITERATURE

The researcher has to refer few books and magazines to refer few

books and review for obtaining and understanding. The relationship in

customers satisfaction and quality of services. It was also useful for

knowing the customer satisfaction versus quality of service offered by

the concern.

The ICFAI journal of Monetary Economics, Numberv’2004 it is studied

that “greenwood and Jovanovich (1990) in their study analyzed the role

that financial institutions play in collecting and analyzing information

and use this information for utilizing funds by investing in such projects

that are high-risk while at the same time yield highest return.

The ICFAI Journal of Service Marketing Dec’2004 “It is important to

note that whatever financial products are put in the market, it can only be

successful if customer has a need for it. Thus the need to study customer

behavior becomes paramount. This flows naturally from the marketing

concept that emphasis the idea of looking at the product from the

consumer’s point of view,”

In Indian Journal of Marketing, May’04 Marketing of Banking Services

in the Globalize Scenario – Emerging Challenges- By Dr. V.

GOPALAKRISHNAN.

Banking services largely depends upon customer demands and their

perceived performance. In urban and metropolitan sectors customers are

more knowledge and demand more facilities than offered. They are

looking for services that are cheaper, faster and qualitatively better”

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The STATISTICAL METHODS, By S. P. GUPTHA. S.P gives a very

in-depth study about the various statistical tools and techniques that

could be used for various researches work purposes. Each statistical test

has been discussed very much in detail and this book has acted as the

back bone for this research study by helping the research work in using

various statistical tools like chi-square, One way ANOVA test, Two way

ANOVA test etc.,

The Marketing Management -By PHILIP KOTLER, which is one of the

masterpieces in the field of marketing, has given an excellent coverage in

the various fields of marketing. The author has very elaborately examine

the various issues in designing the marketing strategies for various

companies, tactical marketing and also the hurdles that arises in the

administrative side of marketing which were all very much useful in

analyzing the various problems of this research study and finally in also

putting forth various feasible recommendation and suggestion for this

research work. This book has also presented various frameworks for

analyzing certain recurrent problem in the field of marketing, which were

also effectively used in this research work.

The RESEARCH MARKETING, By McGauran L.L. gives more stress

on the various categories of information that should be collected for

carrying out the preliminary investigation for the various research

studies. The author McGauran L.L. gives importance to six categories of

information that re to be used for preliminary investigation namely

a. the product b. the company, industry and competition c. the market d. the channel of distribution e. the sales f. the sales promotion policies.

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Further this book also stresses on the pilot survey that should be

conducted before starting the original survey. Hence taking all this into

account, a preliminary questionnaire was drafted and it was tested among

five customers. The flows

found in the questionnaire

were later rectified after

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2. PRODUCT PROFILE

The different services provided by Banks:

1. Home loan Home Purchase Finance Fund the customer’s dream home. Get the maximum loan up to a

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95percentage of Agreement Value + 100percentage of Stamp Duty. Loan

up to Rs. 1 Crore*.

Home Loan Refinance with top-up Free the customer’s money! Have the customer’s existing Home Loan

bought over and enjoy extra cash up to 80percentage of market value of

the customer’s home. Loan up to Rs. 75 Lakh*. Home Improvement Finance If the customer is looking to renovate the customer’s home, get up to

95percentage of the cost estimate (subject to 50percentage of market

value). Get a loan up to Rs. 12 Lakhs*. Home Extension Finance Thinking of expanding the customer’s home? Get up to 95percentage of

the cost estimate

(Subject to 60 percentage of market value). Get a loan up to Rs. 30

Lakhs*. The features of Home Loans: The advantages of dealing with banks, one of the largest financial

conglomerates of the world are plenty:

Highest recognition of income in the industry

Specially designed for businessmen

Flexibility in procedural requirements

Easy income and property documentation criteria

Flexible property norms

Approved plans are not mandatory

Funding for Builder Flats

Hassle-free and fast service

2. Home return: The customer’s home is more than just four walls and a roof that

provides shelter for the customer and the customer’s family. It is also a

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valuable asset, which the customer can put to use while continuing to

occupy it. The banks Home Returns Plan offers the customer the

opportunity of getting a loan against the customer’s house/residential

property for practically any purpose. With our friendly, flexible and fast

service, it is simply the best way to free the wealth locked up in the

customer’s property.

"Home Returns now brings the customer Mortgage Loans for Education.

This zero hassle loan helps the customer fund the customer’s children's

higher studies. Want to know how the customer’s children can follow

their dreams”

Unmatched benefits of Banks Home Returns:

The advantage of dealing with banks one of the largest financial

conglomerates of the world, is plenty? Amount of loan from Rs. 2 Lakh to Rs. 1 Crore*.

Loans against rented, vacant and self-occupied residential properties.

Loan up to 60 percentage of the market value of the customer’s

residential property. Term of loan up to a period of 15 years.

Flexible income criteria. Special schemes for businessmen.

Easy income and property documentation criteria.

Repayment on Equated Monthly Installments (EMIs) basis.

Loans can also be availed on property belonging to the customer’s family members.

3. Mortgages loan for education:

If money is what is standing between the customer and a world-class

education, worry not! Now banks help the customer to fund the

customer’s education by giving the customer a loan against the

customer’s home. So if the customer wants to pursue the customer’s

studies in India or overseas, the customer can do so now without any

financial worries.

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3. RESEARCH METHODOLOGY

RESEARCH DESIGN

The formidable problem that follows the task of defining the research

problem is the preparation of the design of the research project, popularly

known as “Research Design”. Research design is a plan, structure and

strategy of investigation conceived to obtain answers to research

questions and to control variance.

A research design can be defined as “Arrangement of condition for

collection and analysis of data in the manner that aims to combine

relevance to the research purpose with economy in procedure.” It

consists of the blue print for the collection measurement and analysis of

data. The research used here is descriptive research

DESCRIPTIVE RESEARCH

The researcher is interested in knowing the proportion of people in a

given population who has behaved in a particular manner, making

projections of certain thing and determining the relationship between two

or more variables in some areas. As the set up has been well structured

and is a rigid one, which could not be changed by giving sufficient

thought in frail-ling question, deciding type of data to be collected and

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procedure that has been used gives the, proof of using description

research. In descriptive research also there has been use of cross sectional

studies just because the researcher has taken only a sample of elements

from the given population. In the cross sectional study the survey

research has been selected, as a detailed study has to be obtained from a

sample of large population.

DATA COLLECTION METHOD

The data that is used in study in collected by two methods.

1. Primary data

2. Secondary data

Primary Data The primary data does not exist already in records and publications. The

researcher has to gather primary data a fresh for a specific survey. The

primary data can be gathered by way of observation method where the

research mix with the people concerned with the use of particular product

and not important clauses by observing the respondents. The second

method of collection of primary data is by way of experimentation

method where some variables are allowed to vary under a controlled

environment and its cause and effect relationship is studied.

The third method of collection of data is by way of conducting a survey.

This method is used for collection of primary data. The primary data was

collected from customers in India city. For this research study, data was

collected from various account holders of the CitiFinancial. Data

collection was carried out using personal interview method guided by

questionnaire as follows:

. Open-ended questions

. Closed ended questions

. Dichotomous questions

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. Multiple-choice questions

. Ranking questions

. Rating questions SECONDARY DATA

It is needed for conducting this research work collected from the various

business magazines, bank brouchers, statistical and management book,

market research books etc. which are presented in the literature various in

details

SAMPLING DESIGN The precision and accuracy of survey results are affected by the manner

in which the sample has been chosen. The first thing for a sample plan is

definition of the population to be investigated. Defining the population is

often one of the most difficult things to do in sampling. Although ideal

conditions might indicate threat the census would be preferable, such

ideal conditions rarely exist in the real world. A census is not feasible

practically, therefore sample is used.

Two of major advantages of using a sample rather than a census are

speed and timeliness. A survey based on sample takes much less time to

compete than based on census. In this particular research study sample

survey is done. Sample design is the most important heart of sample

planning. Sample design includes type of sample to use and the

appropriate sampling unit. Measurement and ScalingLikert scale has been used in this study to acquire the degree of

agreement and disagreement from the respondent about a particular

category of decision that he makes while seeking loan. This scale has

been calibrated on the range of 1 to 5 where 1 indicates strong

agreeability and 5 denotes strong disagreeability with a certain category

of decision.

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Entire questionnaire of 17 questions uses the same scale to acquire data.

The advantage of using Likert scale in this study is that it is very easy to

construct and administer. Another important advantage is the

convenience for respondents to understand the procedure to respond to

the questions. Likert scale has a drawback that each question is formed

by 1 or 2 sentences. But in this study the customers won’t mind listening

these 1 - 2 sentences to rate a category of decision which expresses their

agreeability or disagreeability for an issue while seeking loan.

Quantitative Methods

A Telephonic Interview was selected as a tool to collect data from the

respondents due to the time and cost constraints. The questionnaire is

structured into 17 simple questions. The respondent is asked to rate his

agreeability and disagreeability on the scale of 1 to 5. The questionnaire

is attached as an annexure to this report. The questions are framed using

minimum financial jargon that customers should be comfortable with.

Analysis and Result1. The decision based on, in processing an application of Home

Loan, received the following responses.

Frequency:HL EZY 2 UNDRSTND

Frequency Percent Valid PercentCumulative

PercentValid 1.00 10 12.5 12.5 12.5

2.00 24 30.0 30.0 42.53.00 30 37.5 37.5 80.04.00 11 13.8 13.8 93.8

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5.00 5 6.3 6.3 100.0Total 80 100.0 100.0

From the 80 respondents nearly 12.5% responses generated shown strong

agreeability, 30.0% responses are generated agree,37.5% responses

generated natural, 13.8% responses generated disagree and remaining

6.3% indicate that the customers strongly disagree that application of

Home Loan easy to understand.

2. The decision based on, mortgage process, received the

following responses.

Frequency:

MORTG PRCS


PercentValid .00 1 1.3 1.3 1.3

1.00 20 25.0 25.0 26.32.00 29 36.3 36.3 62.53.00 19 23.8 23.8 86.3

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4.00 8 10.0 10.0 96.35.00 3 3.8 3.8 100.0Total 80 100.0 100.0

From the 80 respondents nearly 25% responses generated shown strong

agreeability, 36.3% responses are generated agree, 23.8% responses

generated natural, 10% responses generated disagree and remaining

3.8% indicate that the customers strongly disagree that mortgage process

explain thoroughly.

3. The decision based on, EMI fixed by bank, received the


Frequency:

EMI FIX


Percent

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Valid 1.00 40 50.0 50.0 50.02.00 25 31.3 31.3 81.33.00 4 5.0 5.0 86.34.00 6 7.5 7.5 93.85.00 5 6.3 6.3 100.0Total 80 100.0 100.0

From the 80 respondents nearly 50% responses generated shown strong



6.3% indicate that the customers strongly disagree that EMI fixed by

bank is correct.

4. The decision based on, accessibility service received, following

responses.

Frequency:

SRVC RCVD

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PercentValid 1.00 21 26.3 26.3 26.3

2.00 20 25.0 25.0 51.33.00 23 28.8 28.8 80.04.00 9 11.3 11.3 91.35.00 7 8.8 8.8 100.0Total 80 100.0 100.0




8.8% indicate that the customers strongly disagree that they service

received.

5. The decision based on, Interest rates charged by Bank,

received the following responses

Frequency:

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INTRST CHRG BY BNK


PercentValid 1.00 23 28.8 28.8 28.8

2.00 25 31.3 31.3 60.03.00 13 16.3 16.3 76.34.00 16 20.0 20.0 96.35.00 3 3.8 3.8 100.0Total 80 100.0 100.0




3.8% indicate that the customers strongly disagree that interest charged

by bank is correct.

6. The decision based on, favor in Home Loan, received the


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Frequency:

HL FVOR


PercentValid 1.00 27 33.8 33.8 33.8

2.00 33 41.3 41.3 75.03.00 10 12.5 12.5 87.54.00 7 8.8 8.8 96.35.00 3 3.8 3.8 100.0Total 80 100.0 100.0




3.8% indicate that the customers strongly disagree that how much people

are in favor of home loan.

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7. The decision based on, Documentation Procedure of Bank,

received the following responses.

Frequency:

DOC PRCZER


PercentValid 1.00 14 17.5 17.5 17.5

2.00 30 37.5 37.5 55.03.00 22 27.5 27.5 82.54.00 8 10.0 10.0 92.55.00 6 7.5 7.5 100.0Total 80 100.0 100.0




7.5% indicate that the customers strongly disagree that document

procedure is correct.

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8. The decision based on, Processing Fees of Bank, received the


Frequency:

PRCZING FEES


PercentValid 1.00 6 7.5 7.5 7.5

2.00 16 20.0 20.0 27.53.00 26 32.5 32.5 60.04.00 25 31.3 31.3 91.35.00 7 8.8 8.8 100.0Total 80 100.0 100.0




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8.8% indicate that the customers strongly disagree that processing fees is

true.

9. The decision based on, Sanctioning Procedure, received the


Frequency:

SENCTION PRCZER


PercentValid 1.00 6 7.5 7.5 7.5

2.00 10 12.5 12.5 20.03.00 23 28.8 28.8 48.84.00 32 40.0 40.0 88.85.00 9 11.3 11.3 100.0Total 80 100.0 100.0



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11.3% indicate that the customers strongly disagree that document

procedure is correct.

10. The decision based on, Sanctioning Time, received the


Frequency:

SENCTION TIME


PercentValid 1.00 3 3.8 3.8 3.8

2.00 12 15.0 15.0 18.83.00 18 22.5 22.5 41.34.00 23 28.8 28.8 70.05.00 24 30.0 30.0 100.0Total 80 100.0 100.0

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30.0% indicate that the customers strongly disagree about sanctioning

time.

11. The decision based on, Fore Closure Charges, received the


Frequency:

4 CLZR CHRGD


PercentValid 1.00 7 8.8 8.8 8.8

2.00 6 7.5 7.5 16.33.00 25 31.3 31.3 47.54.00 15 18.8 18.8 66.35.00 27 33.8 33.8 100.0Total 80 100.0 100.0

- 3 -




33.8% indicate that the customers strongly disagree about Fore Closure

Charges.

12. The decision based on, sanctioning is going online, received the


Frequency:ONLINE



1.00 34 42.5 42.5 43.82.00 9 11.3 11.3 55.03.00 18 22.5 22.5 77.54.00 5 6.3 6.3 83.85.00 13 16.3 16.3 100.0

- 3 -

Total 80 100.0 100.0




16.3% indicate that the customers strongly disagree that home loan is

going online.

13. The decision based on, interest charged by bank should be

different on the basis of income level, received the following

responses.

Frequency:

INTRST AS INCME LVL


PercentValid 1.00 15 18.8 18.8 18.8

2.00 8 10.0 10.0 28.83.00 21 26.3 26.3 55.0

- 3 -

4.00 13 16.3 16.3 71.35.00 23 28.8 28.8 100.0Total 80 100.0 100.0




28.8% indicate that the customers strongly disagree that should interest

charged by bank should be different on the basis of income level.

14. The decision based on, Seize of asset facility by bank is the

right step, in case of nonpayment of EMI, received the


Frequency:

SIZ WHL NNP EMI



1.00 17 21.3 21.3 22.5

- 3 -

2.00 21 26.3 26.3 48.83.00 14 17.5 17.5 66.34.00 11 13.8 13.8 80.05.00 16 20.0 20.0 100.0Total 80 100.0 100.0




20.0% indicate that the customers strongly disagree that Seize of asset

facility by bank is the right step, in case of nonpayment of EMI is true.

15. The decision based on, facility provides by the bank, received

the following responses.

Frequency:

FCLTY PRVD BANK



1.00 8 10.0 10.0 15.0

- 3 -

2.00 12 15.0 15.0 30.03.00 18 22.5 22.5 52.54.00 31 38.8 38.8 91.35.00 7 8.8 8.8 100.0Total 80 100.0 100.0




8.8% indicate that the customers strongly disagree that they satisfy with

facility provide by the bank.

16. The decision based on, prefer public sectors bank for home


Frequency:

PUBLIC SECTOR


PercentValid 1.00 35 43.8 43.8 43.8

- 3 -

2.00 19 23.8 23.8 67.53.00 5 6.3 6.3 73.84.00 14 17.5 17.5 91.35.00 7 8.8 8.8 100.0Total 80 100.0 100.0




8.8% indicate that the customers strongly disagree that how much people

like to prefer public sectors bank for home Loan.

17. The decision based on, prefer private sectors bank for home


Frequency:

PRIVATE SECTOR


Percent

- 3 -

Valid 1.00 26 32.5 32.5 32.52.00 20 25.0 25.0 57.53.00 7 8.8 8.8 66.34.00 12 15.0 15.0 81.35.00 15 18.8 18.8 100.0Total 80 100.0 100.0




18.8% indicate that the customers strongly disagree how much people

like to prefer public sectors bank for home Loan.

- 3 -

- 3 -

4. INTERPRETATION AND DATA ANALYSIS

1. FACTOR ANALYSIS

SPSS commands for factor Analysis This page shows an example of a factor analysis with footnotes explaining the output. The data used in this example were collected by Professor James Sidanius, who has generously shared them with us. You can download the data set here.Overview: The "what" and "why" of factor analysis.Factor analysis is a method of data reduction. It does this by seeking underlying unobservable (latent) variables that are reflected in the observed variables (manifest variables). There are many different methods that can be used to conduct a factor analysis (such as principal axis factor, maximum likelihood, generalized least squares, unweighted least squares), There are also many different types of rotations that can be done after the initial extraction of factors, including orthogonal rotations, such as varimax and equimax, which impose the restriction that the factors cannot be correlated, and oblique rotations, such as promax, which allow the factors to be correlated with one another. You also need to determine the number of factors that you want to extract. Given the number of factor analytic techniques and options, it is not surprising that different analysts could reach very different results analyzing the same data set. However, all analysts are looking for simple structure. Simple structure is pattern of results such that each variable loads highly onto one and only one factor.The determination of the number of factors to extract should be guided by theory, but also informed by running the analysis extracting different numbers of factors and seeing which number of factors yields the most interpretable results.

Descriptive Statistics

Mean Std. Deviation Analysis NHL EZY 2 UNDRSTND 2.7125 1.05775 80MORTG PRCS 2.2750 1.10207 80EMI FIX 1.8875 1.19061 80SRVC RCVD 2.5125 1.24264 80INTRST CHRG BY BNK 2.3875 1.20646 80HL FVOR 2.0750 1.07650 80DOC PRCZER 2.5250 1.12481 80PRCZING FEES 3.1375 1.07614 80

- 3 -

SENCTION PRCZER 3.3500 1.08032 80SENCTION TIME 3.6625 1.16862 804 CLZR CHRGD 3.6125 1.26785 80ONLINE 2.3875 1.51360 80INTRST AS INCME LVL 3.2625 1.45605 80SIZ WHL NNP EMI 2.8125 1.46774 80FCLTY PRVD BANK 3.0625 1.32497 80PUBLIC SECTOR 2.2375 1.39841 80PRIVATE SECTOR 2.6250 1.52925 80

The table above is output because we used the univariate option on

the /print subcommand. Please note that the only way to see how many

cases were actually used in the factor analysis is to include

the univariate option on the /print subcommand. The number of cases

used in the analysis will be less than the total number of cases in the data

file if there are missing values on any of the variables used in the factor

analysis, because, by default, SPSS does a list wise deletion of

incomplete cases. If the factor analysis is being conducted on the

correlations (as opposed to the co variances), it is not much of a concern

that the variables have very different means and/or standard deviations

(which is often the case when variables are measured on different scales).

a. Mean - These are the means of the variables used in the factor

analysis.

b. Std. Deviation - These are the standard deviations of the variables

used in the factor analysis.

c. Analysis N - This is the number of cases used in the factor analysis.

The table above is included in the output because we used the dot option

on the /print subcommand. All we want to see in this table is that the

determinant is not 0. If the determinant is 0, then there will be

computational problems with the factor analysis, and SPSS may issue a

warning message or be unable to complete the factor analysis.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .625

- 3 -

Bartlett's Test of Sphericity

Approx. Chi-Square 591.314df 136Sig. .000

a. Kaiser-Meyer-Olkin Measure of Sampling Adequacy - This measure varies between 0 and 1, and values closer to 1 are better. A value of .6 is a suggested minimum.

b. Bartlett's Test of Sphericity - This tests the null hypothesis that the correlation matrix is an identity matrix. An identity matrix is matrix in which all of the diagonal elements are 1 and all off diagonal elements are 0. You want to reject this null hypothesis.

Taken together, these tests provide a minimum standard which should be passed before a factor analysis (or a principal components analysis) should be conducted.

Communalities

Initial ExtractionHL EZY 2 UNDRSTND 1.000 .675MORTG PRCS 1.000 .798EMI FIX 1.000 .702SRVC RCVD 1.000 .778INTRST CHRG BY BNK 1.000 .773HL FVOR 1.000 .800DOC PRCZER 1.000 .851PRCZING FEES 1.000 .638SENCTION PRCZER 1.000 .761SENCTION TIME 1.000 .8394 CLZR CHRGD 1.000 .683ONLINE 1.000 .713INTRST AS INCME LVL 1.000 .609SIZ WHL NNP EMI 1.000 .815FCLTY PRVD BANK 1.000 .604PUBLIC SECTOR 1.000 .783PRIVATE SECTOR 1.000 .714Extraction Method: Principal Component Analysis.

a. Communalities - This is the proportion of each variable's variance

that can be explained by the factors (e.g., the underlying latent continua).

It is also noted as h2 and can be defined as the sum of squared factor

loadings for the variables.

- 3 -

b. Initial - With principal factor axis factoring, the initial values on the

diagonal of the correlation matrix are determined by the squared multiple

correlation of the variable with the other variables.

c. Extraction - The values in this column indicate the proportion of each

variable's variance that can be explained by the retained factors.

Variables with high values are well represented in the common factor

space, while variables with low values are not well represented. (In this

example, we don't have any particularly low values.) They are the

reproduced variances from the factors that you have extracted. You can

find these values on the diagonal of the reproduced correlation matrix.

Total Variance Explained

Component Initial Eigenvalues

Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

Total

% of Varianc

eCumulativ

e % Total% of

VarianceCumulative

% Total% of

VarianceCumulative

%1 4.376 25.738 25.738 4.376 25.738 25.738 2.631 15.475 15.4752 2.765 16.268 42.006 2.765 16.268 42.006 2.463 14.486 29.9613 1.930 11.355 53.361 1.930 11.355 53.361 2.392 14.071 44.0324 1.260 7.409 60.770 1.260 7.409 60.770 2.029 11.933 55.9645 1.112 6.541 67.311 1.112 6.541 67.311 1.683 9.898 65.8626 1.094 6.433 73.744 1.094 6.433 73.744 1.340 7.882 73.7447 .736 4.329 78.0738 .689 4.055 82.1299 .634 3.728 85.85710 .519 3.054 88.91111 .466 2.743 91.65412 .407 2.396 94.05013 .290 1.705 95.75514 .246 1.446 97.20115 .215 1.266 98.46816 .152 .895 99.36317 .108 .637 100.000

Extraction Method: Principal Component Analysis.

a. Factor - The initial number of factors is the same as the number of

variables used in the factor analysis. However, not all 17 factors will be

- 3 -

retained. In this example, only the first three factors will be retained (as

we requested).

b. Initial Eigenvalues - Eigenvalues are the variances of the factors.

Because we conducted our factor analysis on the correlation matrix, the

variables are standardized, which means that the each variable has a

variance of 1, and the total variance is equal to the number of variables

used in the analysis, in this case, 17.

c. Total - This column contains the eigenvalues. The first factor will

always account for the most variance (and hence have the highest

eigenvalue), and the next factor will account for as much of the left over

variance as it can, and so on. Hence, each successive factor will account

for less and less variance.

d. % of Variance - This column contains the percent of total variance

accounted for by each factor.

e. Cumulative % - This column contains the cumulative percentage of

variance accounted for by the current and all preceding factors. For

example, the 6 row shows a value of 73.74. This means that the first 6

factors together account for 73.74% of the total variance.

f. Extraction Sums of Squared Loadings - The number of rows in this

panel of the table correspond to the number of factors retained. In this

example, we requested that three factors be retained, so there are three

rows, one for each retained factor. The values in this panel of the table

are calculated in the same way as the values in the left panel, except that

here the values are based on the common variance. The values in this

panel of the table will always be lower than the values in the left panel of

the table, because they are based on the common variance, which is

always smaller than the total variance.

g. Rotation Sums of Squared Loadings - The values in this panel of the

table represent the distribution of the variance after the varimax rotation.

Varimax rotation tries to maximize the variance of each of the factors, so

- 3 -

the total amount of variance accounted for is redistributed over the three

extracted factors.

Total Variance Explained

FactorRotation Sums of Squared Loadings

Total % of Variance Cumulative %1 2.321 13.651 13.6512 2.216 13.034 26.6863 1.788 10.520 37.2064 1.707 10.044 47.2495 1.366 8.037 55.2866 .944 5.555 60.841

Extraction Method: Principal Axis Factoring.

Reproduced Correlations

HL EZY 2

UNDRSTNDMORTG

PRCS EMI FIXSRVC RCVD

INTRST CHRG BY

BNKHL

FVORReproduced Correlation HL EZY 2 UNDRSTND .675(b) .322 .448 -.002 .319 .150 MORTG PRCS .322 .798(b) .667 .329 .456 .074 EMI FIX .448 .667 .702(b) .416 .608 .303 SRVC RCVD -.002 .329 .416 .778(b) .543 .578 INTRST CHRG BY BNK .319 .456 .608 .543 .773(b) .427 HL FVOR .150 .074 .303 .578 .427 .800(b) DOC PRCZER .176 .670 .535 .505 .357 .079 PRCZING FEES .167 .316 .304 .420 .338 .057 SENCTION PRCZER .167 .217 .172 .299 .201 .006 SENCTION TIME .111 -.035 .017 .276 .185 .039

- 3 -

4 CLZR CHRGD -.122 -.091 -.100 .266 .085 .121 ONLINE .208 -.060 -.090 -.281 -.297 .094 INTRST AS INCME LVL -.342 -.312 -.389 -.087 -.402 .097 SIZ WHL NNP EMI .114 .115 -.007 -.078 -.291 .148 FCLTY PRVD BANK -.384 -.295 -.415 -.022 -.493 -.044 PUBLIC SECTOR .265 -.166 .046 .212 .093 .219 PRIVATE SECTOR .259 .318 .372 .034 .475 .124Residual(a) HL EZY 2 UNDRSTND .040 -.082 .096 -.062 .014 MORTG PRCS .040 -.103 -.045 -.051 .069 EMI FIX -.082 -.103 .000 .031 -.109 SRVC RCVD .096 -.045 .000 -.044 -.134 INTRST CHRG BY BNK -.062 -.051 .031 -.044 -.079 HL FVOR .014 .069 -.109 -.134 -.079 DOC PRCZER -.058 -.062 -.018 -.030 -.014 .014 PRCZING FEES .035 -.017 -.133 -.028 .030 .054 SENCTION PRCZER -.034 -.044 -.003 -.001 -.073 .058 SENCTION TIME -.016 .000 .019 -.016 .044 .002 4 CLZR CHRGD .019 .096 .079 -.010 -.027 -.035 ONLINE -.130 -.073 .037 .073 .068 -.089 INTRST AS INCME LVL .080 .014 -.002 -.002 -.025 -.045 SIZ WHL NNP EMI -.084 -.005 -.006 -.057 .054 .006 FCLTY PRVD BANK .099 -.038 .019 .025 .050 -.004 PUBLIC SECTOR -.166 .033 .038 -.028 -.013 -.062 PRIVATE SECTOR -.068 -.038 -.062 .009 -.079 .016

Contd……..

DOC PRCZE

RPRCZING FEES

SENCTION PRCZER

SENCTION TIME

4 CLZR CHRGD ONLINE

Reproduced Correlation HL EZY 2 UNDRSTND 0.176 0.167 0.167 0.111 -0.122 0.208 MORTG PRCS

0.67 0.316 0.217 -0.035 -0.091 -0.06 EMI FIX

0.535 0.304 0.172 0.017 -0.1 -0.09 SRVC RCVD

0.505 0.42 0.299 0.276 0.266 -0.281 INTRST CHRG BY BNK

0.357 0.338 0.201 0.185 0.085 -0.297 HL FVOR

0.079 0.057 0.006 0.039 0.121 0.094 DOC PRCZER

.851(b) 0.579 0.469 0.277 0.111 -0.231 PRCZING FEES

0.579 .638(b) 0.622 0.6 0.366 -0.277 SENCTION PRCZER

0.469 0.622 .761(b) 0.741 0.573 -0.044 SENCTION TIME

0.277 0.6 0.741 .839(b) 0.635 -0.132 4 CLZR CHRGD

0.111 0.366 0.573 0.635 .683(b) 0.032 ONLINE

-0.231 -0.277 -0.044 -0.132 0.032 .713(b)

- 3 -

INTRST AS INCME LVL-0.282 -0.261 -0.061 -0.062 0.243 0.4

SIZ WHL NNP EMI0.052 -0.125 0.096 -0.072 0.123 0.686

FCLTY PRVD BANK-0.029 -0.032 0.09 0.094 0.226 0.186

PUBLIC SECTOR0.154 0.334 0.242 0.384 0.036 -0.177

PRIVATE SECTOR-0.071 -0.087 -0.076 -0.13 -0.03 0.043

Residual(a) HL EZY 2 UNDRSTND-0.058 0.035 -0.034 -0.016 0.019 -0.13

MORTG PRCS-0.062 -0.017 -0.044 0 0.096 -0.073

EMI FIX-0.018 -0.133 -0.003 0.019 0.079 0.037

SRVC RCVD-0.03 -0.028 -0.001 -0.016 -0.01 0.073

INTRST CHRG BY BNK-0.014 0.03 -0.073 0.044 -0.027 0.068

HL FVOR0.014 0.054 0.058 0.002 -0.035 -0.089

DOC PRCZER-0.064 0.034 0.014 -0.038 0.058

PRCZING FEES-0.064 -0.076 -0.08 -0.066 0.003

SENCTION PRCZER0.034 -0.076 -0.045 -0.14 -0.033

SENCTION TIME0.014 -0.08 -0.045 -0.084 -0.029

4 CLZR CHRGD-0.038 -0.066 -0.14 -0.084 0.034

ONLINE0.058 0.003 -0.033 -0.029 0.034

INTRST AS INCME LVL0.042 0.019 0.05 -0.005 -0.091 -0.119

SIZ WHL NNP EMI-0.046 0.045 -0.03 0.042 -0.034 -0.106

FCLTY PRVD BANK-0.036 -0.027 -0.017 0.026 -0.03 0.022

PUBLIC SECTOR0.055 -0.079 0.021 -0.032 0.038 0.031

PRIVATE SECTOR0.084 -0.005 0.087 -0.013 -0.124 -0.001

Contd……

INTRST AS INCME

LVLSIZ WHL NNP EMI

FCLTY PRVD BANK

PUBLIC SECTOR

PRIVATE SECTOR

Reproduced Correlation HL EZY 2 UNDRSTND -0.342 0.114 -0.384 0.265 0.259 MORTG PRCS

-0.312 0.115 -0.295 -0.166 0.318 EMI FIX

-0.389 -0.007 -0.415 0.046 0.372 SRVC RCVD

-0.087 -0.078 -0.022 0.212 0.034 INTRST CHRG BY BNK

-0.402 -0.291 -0.493 0.093 0.475 HL FVOR

0.097 0.148 -0.044 0.219 0.124 DOC PRCZER

-0.282 0.052 -0.029 0.154 -0.071 PRCZING FEES

-0.261 -0.125 -0.032 0.334 -0.087 SENCTION PRCZER

-0.061 0.096 0.09 0.242 -0.076 SENCTION TIME

-0.062 -0.072 0.094 0.384 -0.13 4 CLZR CHRGD

0.243 0.123 0.226 0.036 -0.03 ONLINE

0.4 0.686 0.186 -0.177 0.043 INTRST AS INCME LVL

.609(b) 0.47 0.471 -0.259 -0.177 SIZ WHL NNP EMI

0.47 .815(b) 0.346 -0.193 -0.086

- 3 -

FCLTY PRVD BANK0.471 0.346 .604(b) 0.028 -0.517

PUBLIC SECTOR-0.259 -0.193 0.028 .783(b) -0.391

PRIVATE SECTOR-0.177 -0.086 -0.517 -0.391 .714(b)

Residual(a) HL EZY 2 UNDRSTND0.08 -0.084 0.099 -0.166 -0.068

MORTG PRCS0.014 -0.005 -0.038 0.033 -0.038

EMI FIX-0.002 -0.006 0.019 0.038 -0.062

SRVC RCVD-0.002 -0.057 0.025 -0.028 0.009

INTRST CHRG BY BNK-0.025 0.054 0.05 -0.013 -0.079

HL FVOR-0.045 0.006 -0.004 -0.062 0.016

DOC PRCZER0.042 -0.046 -0.036 0.055 0.084

PRCZING FEES0.019 0.045 -0.027 -0.079 -0.005

SENCTION PRCZER0.05 -0.03 -0.017 0.021 0.087

SENCTION TIME-0.005 0.042 0.026 -0.032 -0.013

4 CLZR CHRGD-0.091 -0.034 -0.03 0.038 -0.124

ONLINE-0.119 -0.106 0.022 0.031 -0.001

INTRST AS INCME LVL-0.032 -0.204 0.06 -0.017

SIZ WHL NNP EMI-0.032 -0.054 0.03 0.004

FCLTY PRVD BANK-0.204 -0.054 -0.071 0.122

PUBLIC SECTOR0.06 0.03 -0.071 0.125

PRIVATE SECTOR-0.017 0.004 0.122 0.125

Extraction Method: Principal Component Analysis.a Residuals are computed between observed and reproduced correlations. There are 53 (38.0%) nonredundant residuals with absolute values greater than 0.05.b Reproduced communalities

a. Reproduced Correlations - This table contains two tables, the

reproduced correlations in the top part of the table, and the residuals in

the bottom part of the table.

b. Reproduced Correlation - The reproduced correlation matrix is the

correlation matrix based on the extracted factors. You want the values in

the reproduced matrix to be as close to the values in the original

correlation matrix as possible. This means that the residual matrix, which

contains the differences between the original and the reproduced matrix

to be close to zero. If the reproduced matrix is very similar to the original

correlation matrix, then you know that the factors that were extracted

accounted for a great deal of the variance in the original correlation

matrix, and these few factors do a good job of representing the original

- 3 -

data. The numbers on the diagonal of the reproduced correlation matrix

are presented in the Communalities table in the column labeled Extracted.

c. Residual - As noted in the first footnote provided by SPSS (a.), the

values in this part of the table represent the differences between original

correlations (shown in the correlation table at the beginning of the output)

and the reproduced correlations, which are shown in the top part of this

table.

Factor Transformation Matrix

Factor 1 2 3 4 5 61 .457 .512 .529 -.282 .386 .1412 .736 -.603 -.030 .180 .010 .2473 -.019 .105 .308 .874 .207 -.2934 -.076 -.060 -.509 -.019 .855 -.0035 .443 .566 -.601 .177 -.276 -.1266 -.217 .198 -.060 .303 -.031 .904

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization.

a. Factor Transformation Matrix - This is the matrix by which you multiply the unrotated factor matrix to get the rotated factor matrix.

Rotated Factor Matrix(a)

Factor

1 2 3 4 5 6HL EZY 2 UNDRSTND .058 .503 .133 .115 .025 .157MORTG PRCS .025 .464 .661 .035 .095 -.172EMI FIX .015 .603 .432 -.016 .293 .038SRVC RCVD .250 .012 .325 -.195 .771 .018INTRST CHRG BY BNK .178 .637 .148 -.270 .477 -.051HL FVOR .035 .148 -.005 .142 .593 .090DOC PRCZER .277 .101 .857 -.095 .143 .117

- 3 -

PRCZING FEES .549 .104 .361 -.193 .123 .155SENCTION PRCZER .748 .034 .282 .038 .021 .110SENCTION TIME .919 .011 -.016 -.084 .030 .1974 CLZR CHRGD .605 -.167 -.038 .080 .168 -.078ONLINE -.075 -.016 -.131 .659 -.042 -.046INTRST AS INCME LVL .016 -.453 -.195 .409 .063 -.183SIZ WHL NNP EMI .041 -.114 .131 .909 .039 -.058FCLTY PRVD BANK .133 -.615 -.034 .231 .000 .014PUBLIC SECTOR .198 .001 .012 -.141 .125 .804PRIVATE SECTOR -.087 .556 -.028 -.008 .089 -.312

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

Factor Matrix(a)

Factor

1 2 3 4 5 6HL EZY 2 UNDRSTND .416 -.181 .185 -.162 .311 -.065MORTG PRCS .639 -.208 .292 -.261 -.231 .216EMI FIX .701 -.242 .225 -.034 .019 .097SRVC RCVD .582 .298 .124 .485 -.165 .199INTRST CHRG BY BNK .780 -.184 .043 .273 -.070 -.173HL FVOR .293 .061 .312 .489 .152 .038DOC PRCZER .662 .259 .086 -.250 -.217 .464PRCZING FEES .568 .431 -.102 -.127 -.024 .013SENCTION PRCZER .435 .608 .088 -.238 -.036 -.177SENCTION TIME .384 .744 -.112 -.132 .084 -.3934 CLZR CHRGD .106 .577 .124 .046 -.141 -.240ONLINE -.321 -.001 .565 -.120 .198 -.074INTRST AS INCME LVL -.498 .249 .315 .139 -.107 -.022SIZ WHL NNP EMI -.265 .199 .818 -.166 .123 .144FCLTY PRVD BANK -.424 .461 .087 .025 -.054 .168PUBLIC SECTOR .262 .322 -.284 .090 .521 .142PRIVATE SECTOR .302 -.466 .214 .034 -.148 -.323

Extraction Method: Alpha Factoring.a 6 factors extracted. 20 iterations required.

a. Rotated Factor Matrix - This table contains the rotated factor

loadings (factor pattern matrix), which represent both how the variables

are weighted for each f actor but also the correlation between the

variables and the factor. Because these are correlations, possible values

range from -1 to +1. On the/format subcommand, we used the

option blank(.30), which tells SPSS not to print any of the correlations

that are .3 or less. This makes the output easier to read by removing the

clutter of low correlations that are probably not meaningful anyway.

- 3 -

For orthogonal rotations, such as varimax, the factor pattern and factor

structure matrices are the same.

b. Factor - The columns under this heading are the rotated factors that

have been extracted. As you can see by the footnote provided by SPSS

(a.), six factors were extracted (the six factors that we requested).

Factor Score Coefficient Matrix

Factor

1 2 3 4 5 6HL EZY 2 UNDRSTND -.007 .200 -.031 .082 -.052 .127MORTG PRCS .007 .204 .245 .038 -.153 -.180EMI FIX -.044 .303 .031 .090 .037 .102SRVC RCVD -.039 -.408 .015 -.128 .927 -.151INTRST CHRG BY BNK .059 .461 -.213 .000 .306 -.100HL FVOR -.036 .023 -.092 .072 .263 .081DOC PRCZER -.051 -.312 .920 -.130 -.235 .089PRCZING FEES .079 -.009 .069 -.039 -.034 .006SENCTION PRCZER .205 .016 .059 .029 -.114 -.064SENCTION TIME .848 .180 -.311 .019 -.218 -.0634 CLZR CHRGD .129 -.076 -.043 .001 .073 -.158ONLINE .003 .088 -.057 .181 .014 .051INTRST AS INCME LVL .030 -.168 -.022 .048 .117 -.129SIZ WHL NNP EMI .036 .099 .059 .895 .140 .137FCLTY PRVD BANK .013 -.261 .055 -.006 .076 -.040PUBLIC SECTOR -.193 .083 -.065 .098 .093 1.080PRIVATE SECTOR .041 .221 -.078 .031 -.014 -.160

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. Factor Scores Method: Bartlett.

Factor Transformation Matrix

Factor 1 2 3 4 5 61 .350 .631 .498 -.298 .350 .1402 .768 -.561 .078 .109 .128 .2463 .023 .167 .160 .877 .309 -.2864 -.192 -.170 -.375 -.208 .866 -.0275 -.085 .266 -.331 .294 -.013 .8526 -.493 -.399 .686 .029 .126 .334

Extraction Method: Alpha Factoring. Rotation Method: Varimax with Kaiser Normalization.

- 3 -

a. Factor Score Coefficient Matrix - This is the factor weight matrix and is used to compute the factor scores.

Factor Score Coefficient Matrix

Factor

1 2 3 4 5 6HL EZY 2 UNDRSTND -.039 .274 -.049 .135 -.070 .307MORTG PRCS .033 .203 .296 .042 -.198 -.285EMI FIX -.047 .292 .041 .094 .025 .147SRVC RCVD -.034 -.370 .039 -.132 .825 -.127INTRST CHRG BY BNK .062 .379 -.190 -.050 .371 -.192HL FVOR -.062 .021 -.121 .086 .372 .170DOC PRCZER -.055 -.332 .865 -.127 -.193 .096PRCZING FEES .063 -.003 .084 -.033 -.036 .088SENCTION PRCZER .225 .029 .055 .041 -.121 -.114SENCTION TIME .832 .198 -.324 .037 -.221 .0184 CLZR CHRGD .150 -.110 -.030 -.016 .083 -.270ONLINE .012 .126 -.074 .223 -.008 .066INTRST AS INCME LVL .054 -.187 -.026 .032 .135 -.245SIZ WHL NNP EMI .029 .074 .073 .861 .141 .139FCLTY PRVD BANK .012 -.257 .062 -.007 .073 -.041PUBLIC SECTOR -.178 .094 -.060 .087 .097 .949PRIVATE SECTOR .088 .245 -.103 .022 -.019 -.357

Extraction Method: Alpha Factoring. Rotation Method: Varimax with Kaiser Normalization. Factor Scores Method: Bartlett.

Discussion Factor analysis helps us to identify the underlying dimensions, or

factors, that explain the correlations among a set of variables. This is

exactly what our study tries to capture. This study aims to factorize the

categories of decisions that a customers takes while seeking home loan

from Banks . Here we do not aim to reduce variables for any further

multivariate analysis.

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1716151413121110987654321

Component Number

5

4

3

2

1

0

Eigen

value

Scree Plot

Interpretation of Results The null hypothesis is that the population correlation matrix is an identity matrix rejected by Bartlett’s test of sphericity. Thus factor analysis may be considered as an appropriate technique for analyzing the correlation matrix

The tables showed above shows the application of principle component analysis. In communalities tables it can be seen that communality for each variables between1 to 17 is unity as unities were inserted in the diagonal of the correlation matrix.

The scree plot shows the Eigen value for each 17 components. The Eigen value for the factors is expected in decreasing order of magnitude as we go from factor 1 to 17. The Eigen value for the factor indicates the total variance attributed to that factor. Eigen values of these factors should be greater than one to be acceptable.

The total variance explained by the extracted 6 factors is close to 61% which is acceptable. But the Eigen value of factors 5 and 6 are less than 1 but close to one. Hence we are taking them into consideration also.

Factor 1 accounts for 13.62% of total varianceFactor 2 accounts for 12.89 % of total varianceFactor 3 accounts for 10.67 % of total varianceFactor 4 accounts for 10.01% of total varianceFactor 5 accounts for 7.87% of total variance

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Factor 6 accounts for 5.04% of total variance

In component score matrix:

1) factor 1 has high coefficient for variables speed and length of time for processing an application accessibility of banks employees. Document requirements are thoroughly explained Mortgage process is thoroughly explained. Responsiveness of banks. Promptness of employees at bank Home Finance Accuracy of paper work done

If these variables are observed they are centered on the category of decision on the promptness of Banks employees and can be safely labeled as factor “promptness in banks”. This factor explains 25.73% of variance. This suggests that while selecting a home loan institution the promptness at Banks is the major factor that drives the decision making of prospective customers.

2) Factor 2 has high coefficient for variables Courtesy at banks. Fairness of treatment received from banks Overall satisfaction Recommend to a friend

If these variables are observed they are centered on the category of satisfaction with the service provided by Banks and can be safely labeled as factor “satisfaction”. This suggests when past and existing customers seek any type of home loan in the near future they are likely to approach Banks.

3) Factor 3 has high coefficient for variables Documentation requirements are minimal. Application status

If these variables are observed they are centered on the category of decision related to documentation requirement and status of an application and can be safely labeled as factor “Documentation requirement”. The statistics reveal that we got negative feedback from the customer. This is the are where Banks needs to concentrate upon to excel in the highly competitive and growing home loan market.

4) Factor 4 has high coefficient for the variable Easiness of application form

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This factor contains just one variable and that is easiness to understand the application form and can safely labeled as factor “Application”

FINDINGS & SUGGESTIONS Among the various loans offered the researcher found that most of the

customer availed home loan whereas the takers for Mortgages and

Housing loan are relatively less i.e. 44 percentages have availed home

loan. 31 percentages are auto loan and 16 percentages are of consumer

durable loan respectively. 4 percentages are of personal loan and 2

percentages are of mortgages respectively. Hence it is recommended for

the company to aggressively advertise these loan facilities in both

newspapers and television channels so that many people may be aware of

the same.

From the market research study it has been observed that 90% of the respondents are aware of home loan. 62% of the respondents are aware of home loan through agent. It was founded that 63% of the respondents are rate the service of home loan as very good.

90% of the Existing Customers are Happy with the Benefits of home loan.

SUGGESTIONS

The home loan company should concentrate heavily on attractive

advertisements and various Promotional Strategies like, giving

Pamphlets, put the hoardings and banners at important locations

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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.

CONCLUSIONS The results and findings of this research study exemplifies the fact that an

in- depth market research has been conducted and all research work 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.

An in-depth study has been made on the aspect that influences the banks

to be the best private financier. Customer satisfaction is the core element

in the business. For customer satisfaction the services have to be an edge

over the other banks, which banks have achieved. Banks is aptly targeted

potential customers among the various levels of people in India. The

banks overall performance and services seems to be highly satisfied.

From the analysis it is found that some customers have faced some

procedural problem, for which the researcher has given some suggestions

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and recommendations.

Banks has got goodwill and reputation among the public and this can be

used for promoting it services. If new promotional activity and services

introduced, it will help very much the organization to increase the

business.

BIBLIOGRAPHY

BOOK REFERENCES:

I. S.P GUPTA, Statistical Methods, New Delhi, Sultan Chand & Sons Publications,2002

II. KOTLER PHILIP, Marketing Management, New Delhi, Prentice-Hall of India Pvt.Ltd.,1971

III. C.R. Kothari, Research Methodology, New Delhi, New Age Publishers,1995

JOURNAL REFERENCES:

I. ICFAI, Journal of Service Marketing, December 2004 II. ICFAI, Journal of Monetary Economics, November 2004

III. Indian Journal of Marketing May 2004

E-REFERENCES:

I. www.icici/india.com

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II. www.sbi.co.in III. www.hdfc/india.com IV. www.google.co.in V. www.citifinancial.co.in

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Questionnaire

Dear respondent, your valuable time and effort in filling this questionnaire are highly appreciated. The information collected through this questionnaire is a part of our project determining investors’ confidence in the Indian Stock Market and will be used for academic purpose only.

CONSUMER PERCEPTION ON HOME LOAN Share your views by putting a mark in the boxes against each question. To maintain confidentiality.How satisfied are you, about Home Loan???

Name: Profession:

Age: Place:

Qualification: Date:

Cell No: Mail ID:1- Strongly Agree, 2- Agree, 3-Neutral, 4- Disagree, 5-Strongly Disagree

Sr. No.

Particulars 1 2 3 4 5

1 The application form of Home Loan is easy to understand. 2 The mortgage process has been explained thoroughly. 3 You like to prefer EMI fixed by bank? 4 How do you rate the service received?

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5 How do you rate the Interest rates charged by Bank? 6 Do you favor in Home Loan? 7 How do you rate the Documentation Procedure of Bank? 8 How do you rate the Processing Fees of Bank? 9 How do you rate the Sanctioning Procedure of Bank?

10 How do you rate the Sanctioning Time of Bank? 11 How do you rate the Fore Closure Charges of Bank? 12 How do you rate when loan sanctioning is going online? 13 Do you think the interest charged by bank should be different

on the basis of income level?

14 Seize of asset facility by bank is the right step, in case of nonpayment of EMI?

15 Are you satisfy with facility provide by the bank? 16 Would you like to prefer public sectors bank for home Loan? 17 Would you like to prefer private sectors bank for home Loan?

Anything else you would like to share:-

Thanks for your valuable inputs.

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Devices & Hardware

Consumer perception towards home loan