54199223 a Report on Comparative Study of Home Loan Amp Customer Satisfaction

7/27/2019 54199223 a Report on Comparative Study of Home Loan Amp Customer Satisfaction

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2010

HDFC

CHANDIGARH

[A REPORT ON COMPARATIVE

STUDY OF HOME LOAN &CUSTOMER SATISFACTION]


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TABLE OF CONTENTS

SNO PARTICULARS PAGE NO.

1 EXECUTIVE SUMMARY 5

2 OBJECTIVE OF THE REPORT 6

3 INTRODUCTION 7

4 BACKGROUNDy Vision of the organizationy Vision of HDFC y Promotersy Organizational goalsy Organization and management

8-9

5 BOARD OF DIRECTORS 10

6 ABOUT HDFCy Core businessy Shareholders patterny Balance sheet (liabilities and assets)y Continuing growth momentumy Sources of mortgagey Fund raising

11-16

7 ASSOCIATE COMPANIESy Holdingsy HDFC bank y HDFC AMCy HDFC standard lifey HDFC ERGO y HDFC salesy HDFC realty

17-23

8 HOME LOAN PRODUCTS 24-25


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9 COMPARISON WITH OTHER MARKET PLAYERSy State bank of Indiay ICICI bank y AXIS bank y IDBI bank

26-32

10 SWOT ANALYSIS 33

11 STUDY ON CUSTOMER SATISFACTIONy Customer satisfactiony Need for customer satisfactiony O bjective of studyy Scope of studyy Research methodology

34-40

12 ANALYSIS 38-41

13 RELATION BETWEEN VARIOUS PARAMETERS 42-50

14 SPSS ANLYSIS FOR FACTOR 51-54

15 LIMITATIONS 55

16 RECOMMENDATIONS AND SUGESSTIONS 5617 BIBLIOGRAPHY 57

18 ANNEXURE 58-62


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OBJECTIVE OF THE PROJECT

The objective of this research is to analyse the home loans with a view to arrive at most popular loan schemes offe red by the bank s under study and to conclude from theanalysis the best possible schemes which would keep the bank ahead of competition.

Further this study would lead to know about the following:

y To have the first hand information on home loan products, sanctioning and disbursemin HDFC ltd.

y To compare the performance of HDFC with other market players.

y To conductSWOT analysis of HDFC ltd.

y To study the satisfaction level of customers about home loans


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INTRODUCTION

Buying a home of one's own is every individual's first stop in life. HDFC LTD have pulled out

all the stops to sew together a home loan product that has flexibility as its very foundation. Itcreated a product that is competitively benchmarked, that is amply affordable and one that iscustomer-sensitive.Only because when it comes to buying a house, the first thing you need to dis to feel at home with your bank.

There are various opportunities for a young salaried individual to plan their moves ahead of twhich will not only lead to wealth creation but will also cater to the demand of their growingfamily.

To help such individuals various financial institutions work day and to make these people reatheir dreams.One of them is HDFC.

We will now look at how these institutions work and what do they do to remain competitive the market.

Going by the facts we can infer that the demand for reality sector has grown by 7-8%.Thoughthe figures were bit shaky after the subprime crises of the US but the prices are now quite stablewhich has caused an increase in the demand in this sector.

HDFC brings its home loan policy to ones doorstep, with over 30 years of experience and adedicated team of experts with the complete package that meets all the housing finance need


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BACKGROUND

HDFC was incorporated in 1977 as the first specialized Mortgage Company in India with

primary objective of meeting a social need that of promoting the home ownership by providilong term finance to households for meeting their housing needs.

Its services are aimed at individuals as well as companies availing loans for housing purposealso provides lease finance to companies and to development authorities for financinginfrastructure and other assets along with its property related services.

VISION OF THEORGA NISATION

HDFC is an organization that strives for excellence, with the twin objectives of enhancingcustomer satisfaction and shareholder value.

VISION OF HDFC

y To enhance residential housing stock in the country through the provision of housingfinance in a systematic and professional manner and to promote home ownership.

y To increase the flow of resources to the housing sector by integrating the housing fina

sector with the overall domestic financial markets.

PR OMOT ER S

HDFC is Indias premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets.Since its inception in 1977, the Corporation hasmaintained a consistent and healthy growth in its operations to remain the markets leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC hadeveloped a significant expertise in retail mortgage loans to different market segments and ahad a large corporate client base for its housing related credit facilities.W ith its experience in thefinancial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.


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ORGA NISATION AL GOALS

y Develop close relationships with individual households.

y Maintain its position as the premier housing finance institution in the country.

y Transform ideas into viable and creative solutions

y Provide consistently high returns to shareholders.

y To grow through diversification by leveraging off the existing client base.

ORGA NISATION A ND MA NAGEME NT

HDFC is professionally managed with a board of directors consisting of eminent persons whrepresents various fields including finance, taxation, construction and urban policy anddevelopment.The board primarily focuses on strategy formulation, policy and control designeto deliver increasing value to shareholders.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertof the management team and the overall focus on recruiting and retaining the best talent in thindustry, the bank believes that its people are a significant competitive strength.


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BOARD OF DIRECTORS

S. No Name Designation

1 Mr.Deepak S ParekhChairman /Chair Person

2 Mr.ShirishB Patel Director 3 Mr.D MSatwalekar Director 4 Mr.D N Ghosh Director 5 Dr.Bimal Jalan Director 6 Dr.J J Irani Director 7 Mr.B S Mehta Director 8 Mr.D MSukthankar Director 9 Mr. N M Munjee Director

10 Dr.RamS Tarneja Director 11 Dr.S A Dave Director

12 Mr.VSrinivasa RanganExecutiveDirector

13 Mrs.RenuSud KarnadManagingDirector

14 Mr.Keshub Mahindra Vice Chairman

15 Mr.Keki M MistryVice Chairman& CEO


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Housing finance is a part of financial service which has emerged strongly due to growth of banking industry and housing finance institution or companies.The housing finance is a type of installment credit which forms the largest single source of housing finance. Under installmencredit scheme, the customer repays the loan in equal periodic or monthly installments (EMI)EMI means the amount of monthly payment necessary to amortize the loan with interest withthe tenure of loan.

HDFC offers Loans for Homes-for buying or constructing homes, refinancing a home loanavailed from another institution or to extend or improve an existing home. HDFC also financ purchase of land approved agencies to help construct a home. HDFC also helps a customer acquiring a self contained flat in an existing or proposed cooperative society, in an apartmentowners association or even an independent single family or multifamily bungalow or row hHDFC Homes Loans have serve 26lakh customers over a period of 29 years.


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COREBUSI NESS


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BALA NCESHEET OF HDFC LTD (LIABILITIES)

BALA NCESHEET OF HDFC LTD (ASS ETS )


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CONT I NUI NG GR OWT H MOME NTUMOF HDFC LTD.

SO URCES OF MOR TGAGE AT HDFC LTD.


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FUND RAISING AT HDFC


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ASSOCIATE COMPANIES


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HOLDINGS


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HDFC BANK

y HDFCBank was incorporated in August 1994

y Among the first in new generation commercial banks

y Registered office in Mumbai, India

y Promoted by HDFC, the parent company

y IPO in India in 1995

y Listed in NSE, BS E, NYS E(ADR)

NETWO RK

y 1416 branches

y 3570 ATMs in the country

y 550 cities in India

y All branches areOLR T connected

y 500 locations serviced throughTelebanking

y Representative offices in Hong Kong, NewYork, London &Singapore.


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BUSI NESS FOCUS

y World Class IndianBank

y Benchmarking against international standards.

y Best practices in terms of ethical standards, professional integrity, corporate governanand regulatory compliance

y To build sound customer franchises across distinct businesses.

y Four core values -O perational Excellence, Customer Focus,Product Leadership andPeople.

OFFERI NGS y WholesaleBankingServices

y RetailBankingServices

y Treasury

ACHIEVEME NTS

y HDFCBank merged withTIMES BA NK in 2000.y HDFCBank merged with CE NTURION BA NK OF PU NJAB in 2007.

y HDFCBank wins the AsianBanker Best RetailBank in India Award 2008 for outstanding performance.

y HDFCBank chosen as one of AsiaPacifics best 50 companies by Forbes magazine.

y 'BestBank in thePrivateSector 2008.'

y

HDFCBank ties up with Qatar NationalBank.


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HDFC AMC

y Incorporated on 10th December, 1999

y Approved as AMC for HDFC Mutual Fund on 3rd July, 2000

y Z urich India Mutual Fund divested its Asset Management business in India

y HDFC AMC acquiredZ urichsSchemes on 19th June, 2003.

VISION

Partic ulars % of the paid up eq uity capital

HDFC Limited 60

Standard Life Investme nts Limited 40


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HDFC STANDARD LIFE

y Joint Venture between

y Financial Expertise

y Range of Solutions

y Track RecordSo Far is:

y GrossPremium Income Rs. 5564.69 crs

y 27 lakh policies in force.

VISION

y 'The most successful and admired life insurance company, which means that we are thmost trusted company, the easiest to deal with, offer the best value for money, and set standards in the industry'.

y 'The most obvious choice for all'.

Com panys Name Percentage ho ldi ng

HDFC Ltd. 72.43

Standard Life (Mauritius) 2006 26.00


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HDFC ERGO GENERAL INSURANCE

y 74:26 Joint Venture between HDFC Ltd. & ERGO International AG

y Right InsuranceSolution for ALL

y 46 cities with 52 branch offices with an employee strength of 650 professionals.

VISION

y " To be the most admired insurance company that enables the continued progress of customers by being responsive to their needs" .

HDFC REALTY

y WhollyOwnedSubsidiary of HDFC Ltd.

y FacilitatingBuying,Selling or Leasing of Residential/CommercialProperty

y Geographic Reach - Mumbai, Navi Mumbai,Pune,Bangalore, Delhi / NCR, Kolkata,Kochi & Hyderabad.


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HOME LOAN PRODUCTSy Home Improveme nt Loans

y Flat, row house, bungalow from developers

y Existing freehold properties

y Properties in an existing or proposed co-operative housing society or apartment

y Owner's association

y Home Exte nsion Loans

y To facilitate the extension of an existing dwelling unit.

y The maximum amount of such a loan is Rs. 100 lacs or 100% of the cost of

extension, whichever is lower y Maximum duration of 20 years and is to be repaid in equated monthly

installments

y Home Conversion Loans

y Existing HDFC borrowers can avail of a Home Conversion Loan to acquireanother dwelling unit, through sale of the existing dwelling unit

y The existing loan gets transferred to new property with the increased loan amou

y Saves the prepayment processing charges for loan conversion

y Top - Up Loans

y Encashing the investment in a house without having to dispose it off to fundvarious needs related to Higher Education,Purchase of Furniture,BusinessRequirements.

y The maximum term of the loan is 10 years.Top up loans can given after 1 to 2years of the final disbursement of the existing loan or upon possession/complet

of the existing financed property.


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y Home Loan

y Maximum loan85% of the cost of the property and based on the repayment capacity of thecustomer.

y MaximumTerm20 years subject to your retirement age.

y Applicant and Co- Applicant to the loan

y Adjustable Rate Home Loan

y Fees

y Home Improveme nt Loan

y Maximum loany Existing customer

y New customer

No Charges for

y Replacement of cheques

y IncomeTax Certificates

y Accelerated RepaymentO ption

Land Purch ase Loan

Maximum loan

MaximumTerm

Applicant and Co- Applicant to the loan

Adjustable Rate Home Loan

y No Charges for

y Replacement of cheques

y IncomeTax Certificates

y Accelerated RepaymentO ption


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COMPARISON OF HDFC LTD WITHOTHER MARKET PLAYERS


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STATE BANK OF INDIA

Features & Benefits of SBI Home Loan

Purchase/ Construction of House/ FlatPurchase of a plot of land for construction of House Lowest Home Loan Interest Rate.. Extension/ repair/ renovation/ alteration of an existing House/ FlatPurchase of Furnishings and Consumer Durables as a part of the project cost.Takeover of an existing loan from other Banks/ Housing Finance Companies. Interest charged on the daily reducing balance

No penalty on prepayments of home loan No hidden costsO ption to club income of your spouse and children to compute eligible loan amountProvision to club depreciation, expected rent accruals from property proposed to compute

eligible loan amountProvision to finance cost of furnishing and consumer durables as part of project cost.


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CURRENT RATE OF INTEREST

LOAN SCHEME 1st YEAR 2nd YEAR & 3rd YEAR

AFTER 3r YEAR

SB I HI-FIVE LoanLoan Amount upto Rs. 5Lacs

8.00% (p.a.)Fixed interest rate

9.00% (p.a.)Floating Interest RatesOR 10.50% (p.a.)Fixed Interest Rates

9.00% (p.a.)Floating Interest RatesOR 10.50% (p.a.)Fixed Interest Rates

SB I Easy Home LoanLoan Amount upto Rs. 50Lacs

8.00% (p.a.)Fixed interest rat

8.00% (p.a.)Fixed interest rat

9.00% (p.a.)Floating Interest RateOR 10.50% (p.a.)Fixed Interest Rate

SB I Easy Home LoanLoan Amount upto Rs. 50Lacs

8.00% (p.a.)Fixed interest rate

9.00% (p.a.)Fixed Interest Rates

10.00% (p.a.)Floating Interest RateOR 11.00% (p.a.)Fixed Interest Rate

ELIGIBILITY CRITERIA & DOCUMENTATION REQUIRED

SALARIED SELF EMPLOYEED

Age 21years to 60years 21years to 70years

Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)

Loan AmountOffered 5,00,000 - 1,00,00000 5,00,000 - 2,00,00000

Tenure 5years-20years 5years-20years

Current Experience 2years 3years

Documentation 1) Application form with photograph2) Identity & residence proof 3) Last 3 months salary slip4) Form 165) Last 6 months bank salaried

1) Application form with photograph2) Identity & residence proof 3) Education qualificationscertificate & proof of businessexistence


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credit statements6) Processing fee cheque

4) Business profile,5) Last 3 years profit/loss & balance sheet6) Last 6 months bank statements

ICICI BANK

Features & Benefits of ICICI Bank Home Loan

Attractive Home Loan Rates No charges on part pre-payment of your Home LoanTop Up & Home Improvement Loan facility available on existing Home Loan Home loan amounts suited to your needs Home Loan tenure upto 25 yearsSimplified Documentation

Doorstep Delivery of home loan papersSanction approval without having selected a property. FreePersonal Accident Insurance policies Insurance options for your home loan at attractive premium

CURRENT RATE OF INTEREST

LOAN SCHEME UPTO 30 LACS FROM 30 LACS-50LACS

ABOVE 50 LACS

ICICIBank Floating 8.75% Floating 9% Floating 9.50%


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DOCUMENTATION REQUIRED

SALARIED SELF EMPLOYED

Age 21years to 65years 21years to 65years

Income Rs.1,44,000 (p.a) Rs.1,50,000 (p.a)

Loan AmountOffered 2,00,000 - 1,00,00000 2,00,000 - 2,00,00000

Tenure 5years-20years 5years-20years

Current Experience 1years 3years

Processing Fee 0.5% of loan amount asAdministrative Fee or Rs. 2,000,whichever is higher

0.5% of loan amount asAdministrative Fee or Rs. 2,000,whichever is higher

Documentation 1) Application form with photograph2) Identity & residence proof 3) Latest salary slip4) Form 165) Last 6 months bank statements6) Processing fee cheque

1) Application form with photograph2) Identity & residence proof 3) Proof of business existence4) Profile of theBusiness5) Last 3years ITR 6) Last 6 months bank statements7) Processing fee cheque

AXIS BANK

Features and benefits of Axis Bank Home Loan Attractive Home loan rate of interestBalanceTransfer FacilityYou can choose between floating rate of interest and fixed rate of interest Loan can be sanctioned if you want to purchase any residential plot or a new house/flatPre approved loan facility


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ELIGIBILITY & DOCUMENTS REQUIRED


Age 24 years to 60 years 24 years to 65 years

Loan AmountOffered Rs.1lac to 50lacs Rs.1lac to 50lacs

Processing Fee 0.5% +Service tax asapplicable

Nil

Documentation 1) Application form with photograph

2) Identity & residence proof 3 )Latest salary slip,4) Form 165) Last 6 months bank statements6) Processing fee cheque

1) Application form with photograph2) Identity & residence proof 3) Education qualificationscertificate & proof of businessexistence4) Business profile, Last 3 years profit/loss & balance sheet5) Last 6 months bank statements6) Processing fee cheque

IDBI BANK

IDB I, the tenth largest development bank in the world has promoted world clainstitutions in India. A few of such institutions built by IDB I are T he N ationalS tock Exchange ( NS E), T he N ationalS ecurities DepositoryS ervices Ltd.( NS DL),S tock Ho lding Co rporation o f India (S HCIL) etc. IDB I is a strategic investor in a plethora of inst itutions which have revolutionized the Ind ian Financ ia l Markets


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IDB I promotedidbi bank to mark the formal foray of the IDB I Group intocommercialB anking.T his initiative has blossomed into a major success story.

IDBI bank offers only Floating rate home loans.

INTEREST RATE CHARTTENURE(in years) SALARIED SELF EMPLOYED

Upto 5 7.50% 7.75%

10 7.50% 7.75%

15 7.50% 7.75%

20 7.50%

ELIGIBILITY CRITERIA


Age 24years-58years 24years-65years

Loan amount 2lacs-3crore 2lacs-3crore

Income Gross 1.20lacs Net 1lac

Minimum work experience 2years 2years


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SWOT ANALYSIS

Risk of fraud & NPA

Major private players.R BI policies.Increase in

funding cost.

Untapped ruralmarket

Leader in homeloan segmentFast growing

insurance business

Strict policy of funding.Not veryaggressive inM&A.Mere

international presence.

Leader in homeloan segmentRightStrategy

for products.Distribution

Structure

Strength Weakness

ThreatO pportunity


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STUDY ON CUSTOMER SATISFACTION


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CUSTOMER SATISFACTION

: State of mind of customers when expectations have been met or have exceeded over lifetime of the products/services i.e.Customer satisfaction , a business term, is a measure of how

products and services supplied by a company meet or surpass customer expectation. It is sea key performance indicator within business. In a competitive marketplace where businecompete for customers, customer satisfaction is seen as a key differentiator and increasingly become a key element of business strategy. Customer satisfaction is an ambiguous and absconcept and the actual manifestation of the state of satisfaction will vary from person to peand service to service.The state of satisfaction depends on a number of both psychological an physical variables.

It's a well known fact that no business can exist without customers. And with increacompetition and with that more customers need and expectations a whole lot of changes havetaken place.

THE NEED TO MEASURE CUSTOMER SATISFACTION

Satisfied customers are central to optimal performance and financial returns.In many placethe world, business organizations have been elevating the role of the customer to that of a

stakeholder over the past twenty years. Customers are viewed as a group whose satisfactionthe enterprise must be incorporated in strategic planning efforts. Forward-looking companiefinding value in directly measuring and tracking customer satisfaction (CS) as an importantstrategic success indicator. Evidence is mounting that placing a high priority on CS is critical toimproved organizational performance in a global marketplace.

W ith better understanding of customers' perceptions, companies can determine the actrequired to meet the customers' needs.They can identify their own strengths and weaknesses,

where they stand in comparison to their competitors, chart out path future progress improvement. Customer satisfaction measurement helps to promote an increased focuscustomer outcomes and stimulate improvements in the work practices and processes used wthe company.


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When buyers are powerful, the health and strength of the company's relationship withcustomers its most critical economic asset is its best predictor of the future. Assets on balance sheet basically assets of production are good predictors only when buyers are wSo it is no wonder that the relationship between those assets and future income is becoming mand more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focon competition has its place, but with buyer power on the rise, it is more important to attention to the customer.

Customer satisfaction is quite a complex issue and there is a lot of debate and confusion awhat exactly is required and how to go about it.This article is an attempt to review the necessaryrequirements, and discuss the steps that need to be taken in order to measure and track custosatisfaction.

OBJECTIVE OF THE STUDY

The objective of this study is to study the level of satisfaction among the existing customeHDFC Ltd. on the basis of various parameters and also tocompare HDFC Ltd. services other public sector banks and private sector banks in terms of customer satisfaction and toout the various reasons of customer satisfaction or dissatisfaction in HDFC Ltd.services.

SCOPE OF THE STUDY

The scope of the study is confined in studying extent of HDFC Ltd. services in succesachievement of the customer satisfaction and also comparing the public sector and private s banks in terms of customer satisfaction level.The study will be undertaken on the basis of sample survey.

RESEARCH METHODOLOGY

y R esearch desi gn:

The research design would be descriptive and cross sectionaly Sam ple size :

The sample would be selected on random basis. A sample of 50 respondents would be usethe research.


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ANALYSIS

1) Partici pants proportio n:CATEGORY TOTAL(50) %

Male 34 68Fem ale 16 32

2) Occupatio n type:CATEGORY TOTAL(50) %

Self -em ployed 11 22

Employed (private) 21 42

Em ployed (governme nt) 18 363) Income levels:

CATEGORY TOTAL(50) %


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y EMPLOYEE * INCOME Cross tabulation

INCOME

Total A b c DEMPLOYEE Self-employed 0 8 3 0 11

Employed(pvt) 13 4 1 3 21Employed(gvt) 8 8 2 0 18

Total 21 20 6 3 50

y GENDER * EMPLOYE E Cross tabulation

EMPLOYEE

TotalSelf-employed Employed(pvt) Employed(gvt)GENDER Male 7 14 13 34

Female 4 7 5 16

Total 11 21 18 50

y GENDER *LOAN PERIOD Cross tabulation

LOAN PERIOD

Total>1 year 1-3 years 3-5 years >5 yearsGENDER Male 9 8 6 11 34

Female 2 3 3 8 16Total 11 11 9 19 50

4) Purpose of Visit : CATEGORY TOTAL(50) %

Deposit Enquiry 8 16

Home Loan Enquiry 30 60

Anyothe r 12 24


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5) Know led ge about HDFC Ltd .-CATEGORY TOTAL(50) %

Friends, relatives 23 46

Inte rnet 0 0

Existi ng em ployees 13 26

Othe r sources 14 28

6) Period of Loan:


>1 year 11 22

1-3 years 11 22

3-5 years 9 18

>5 years 19 38

7) Rate optio n:


Fixed 13 26

Floating 33 66

Dual 4 8


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8) Schemes awareness :


Trenchi ng 3 6

Conversion 2 4

Prepayme nt 18 36

Not aware 28 56

9) Loan f rom othe r bank s:


Yes 38 76

No 12 24

10) Awareness about value added services :


Life Insurance cover 12 24

Home Insurance cover 5 10

International credit card facility 6 12

Not aware 27 54

11) R ecomme ndatio n to othe rs/ tak ing anothe r loan f rom HDFC Ltd .:


Yes 35 70

No 15 30


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FrequenciesStatistics : RECOMME NDATIONS

N Valid 50Missing 0

Mean 1.70Median 2.00Mode 2Std. Deviation .463Variance .214Sum 85

Frequency Percent ValidPercent CumulativePercentValid N 15 30.0 30.0 30.0

Y 35 70.0 70.0 100.0Total 50 100.0 100.0

REGRESS ION :Variables Ente red/ R emo ved (b)

Model Variables Entered VariablesRemoved Method1 SERVICES(a) . Enter

Mode l Summ ary (b)

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

ChangeStatisticsR SquareChange F Change df1 df2 Sig. F Chang

1 .427(a) .182 .165 .423 .182 10.683 1 48 a Predictors : (Constant) , SERVICES b Dependent Variable : RECOMMENDATIONS


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ANOVA (b)

ModelSum of Squares df MeanSquare F Sig.

1 Regression 1.912 1 1.912 10.683 .002Residual 8.588 48 .179Total

10.500 49a Predictors : (Constant) , SERVICES b Dependent Variable : RECOMMENDATIONS

Coefficie nts (a)

Model

UnstandardizedCoefficients

StandardizedCoefficients

t Sig.

95% Confidence Interval forB

B Std. Error Beta Lower Bound Upper Bound1 (Constant) 2.355 .209 11.258 .000 1.935 2.7

SERVICES -.037 .011 -.427 -3.269 .002 -.059 -.

ANALYSIS:1. The value of R 2= .182, which shows that the relation betweenSERVICES(occupation) and

RECOMME NDATION is not strong enough. 2. Standard error = .423 3. The value of constantcoefficient (a) is = 2.355.4. The value of variablecoefficient (b) is = -.037.5. From A NOVA test we get:

y SSR(sum square between rows/columns) =1.912 y SSE(sum square error) = 8.588y

SST (sum square total) = 10.500y MSR(mean square between rows) =1.912 y MSE (mean square between error) =.179

y relatio n betwee n PERIOD(inde pende nt variable) and RATE(de pende nt variable) :

Frequencies:Statistics : PERIOD

N Valid 50Missing 0

Mean 2.72Median 3.00Mode 4Std. Deviation 1.196Variance 1.430Sum 136


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Frequencies:

Statistics : RATE

N Valid 50Missing 0


Frequency Percent ValidPercentCumulative

PercentValid a 13 26.0 26.0 26.0

b 33 66.0 66.0 92.0c 4 8.0 8.0 100.0Total 50 100.0 100.0

RATE into NRATEO ld Value New Value Value Label

a 1 a b 2 bc 3 c



b 11 22.0 22.0 44.0c 9 18.0 18.0 62.0d 19 38.0 38.0 100.0Total 50 100.0 100.0


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PERIOD into NPERIODOld Value New Value Value Label

a 1 a b 2 bc 3 cd 4 d

Regression: Variables Ente red/ R emo ved (b)

ModelVariablesEntered

VariablesRemoved Method

1 NPERIOD(a) . Enter a All requested variables entered. b Dependent Variable: NRATE

Mode l Summ ary

Model R R Square Adjusted R Square Std. Error of the Estimate1 .046(a) .002 -.019 .56

a Predictors: (Constant), NPERIOD

ANOVA(b)


1 Regression .033 1 .033 .103 .750(aResidual 15.347 48 .320Total 15.380 49

a Predictors: (Constant), NPERIOD b Dependent Variable: NRATE


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Coefficie nts (a)

Model

Unstandardized CoefficientsStandardizedCoefficients

t Sig.B Std. Error Beta

1 (Constant) 1.879 .200 9.378 .00 NPERIOD -.022 .068 -.046 -.321 .75

ANALYSIS:1) The value of R 2= .002, which shows that the relation betweenSERVICES(occupation)

and RECOMME NDATION is very weak.2) Standard error = .5653) The value of constant coefficient (a) is = 1.879.4) The value of variable coefficient (b) is = -.022.

5) From A NOVA test we get:y SSR(sum square between rows/columns) = .033.y SSE(sum square error) = 15.347y SST (sum square total) = 15.380y MSR(mean square between rows) = .033

y MSE (mean square between error) = .320

y relatio n betwee n INCOME(inde pende nt variable) and PERIOD(de pende nt variable):

FrequenciesStatistics : I NCOME

N Valid 50Missing 0



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b 20 40.0 40.0 82.0c 6 12.0 12.0 94.0d

3 6.0 6.0 100.0Total 50 100.0 100.0

I NCOME into NI NCOME O ld Value New Value Value Label

a 1 a b 2 bc 3 cd 4 d

Regression

Variables Ente red/ R emo ved (b)

Model Variables EnteredVariablesRemoved Method

1 NI NCOME(a) . Enter a All requested variables entered. b Dependent Variable: NPERIOD

Mode l Summ ary

Model R R Square Adjusted R Square Std. Error of the Estimate1 .244(a) .059 .040 1.17

a Predictors: (Constant), NI NCOME

ANOVA(b)


1 Regression 4.167 1 4.167 3.034 .088(Residual 65.913 48 1.373Total 70.080 49

a Predictors: (Constant), NI NCOME b Dependent Variable: NPERIOD


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Coefficie nts (a)

Model

Unstandardized CoefficientsStandardizedCoefficients

t Sig.B Std. Error Beta1 (Constant) 2.112 .386 5.470 .000

NI NCOME .334 .192 .244 1.742 .088a Dependent Variable: NPERIOD

ANALYSIS:1) The value of R 2= .059, which shows that the relation betweenSERVICES(occupation)

and RECOMME NDATION is very weak.2) Standard error = 1.1723) The value of constant coefficient (a) is = 2.112.4) The value of variable coefficient (b) is = .334.5) From A NOVA test we get:

y SSR(sum square between rows/columns) = 4.167y SSE(sum square error) = 65.913y SST (sum square total) = 70.080y MSR(mean square between rows) = 4.167y MSE (mean square between error) = 1.373

y relatio n betwee n INCOME(inde pende nt variable) and RATE(de pende nt variable):

R egressio n

Variables Ente red/ R emo ved (b)

ModelVariablesEntered

VariablesRemoved Method

1 NI NCOME(a) . Enter

a All requested variables entered. b Dependent Variable: NRATE


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Mode l Summ ary

Model R R Square Adjusted R Square Std. Error of the Estimate1 .193(a) .037 .017 .555

a Predictors: (Constant), NI NCOME

ANOVA(b)


1 Regression .571 1 .571 1.851 .180(a)Residual 14.809 48 .309Total 15.380 49

a Predictors: (Constant), NI NCOME b Dependent Variable: NRATE

Coefficie nts (a)

Model

UnstandardizedCoefficients

StandardizedCoefficients

t Sig.B Std. Error Beta

1 (Constant) 2.045 .183 11.171 .000 NI NCOME -.124 .091 -.193 -1.360 .180

a Dependent Variable: NRATE

ANALYSIS:1. The value of R 2= .037, which shows that the relation betweenSERVICES(occupation) and

RECOMME NDATION is very weak.2. Standard error = .5553. The value of constant coefficient (a) is = 2.045.4. The value of variable coefficient (b) is = -.124.

5. From A NOVA test we get:y SSR(sum square between rows/columns) = .571y SSE(sum square error) = 14.809y SST (sum square total) = 14.380y MSR(mean square between rows) = .571y MSE (mean square between error) = .309


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y Ste p 3 Ext ractio n of f acto rs: In the above table the first column shows us the initial eigen values.The first factor shows us theeigen value in the terms of percentage of variance explained.The spss then extracts the factorswhose eign values are greater than one based on which two of the factors are extracted. Inthird column rotated sum of squares of the factor loading is shown.The percentage of variance inthis is reduced because of optimization of factors.

y Ste p 4 Table of Comm unalities :

Comm unalities

Initial Extraction

PR OP_ FI N 1.000 0.748 TRUEREP_ MOD 1.000 0.370 FALSE

DISB_T IM 1.000 0.755 TRUE

TRA NSP CY 1.000 0.764 TRUE

LOCATION 1.000 0.508 FALSE

K YC 1.000 0.523 FALSE

FLEXIBIL 1.000 0.876 TRUE

BEHAVIOU 1.000 0.764 TRUE

TOP_ UP 1.000 0.498 FALSE


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Com ponent Matrix(a)

Component

1 2

FLEXIBIL 0.807 -0.474

PR OP_ FI N 0.806

BEHAVIOU 0.801

DISB_T IM 0.739 0.457

K YC 0.713

LOCATION 0.711

TRA NSP CY 0.699 -0.525

TOP_ UP 0.647

REP_ MOD 0.563

The SPSS has extracted two of the factors however it is statistical tool and we have to judgeour self as to what factors are important and what are to be left out.Based on thumb rule we areconsidering the factors having value above 0.7 are marked as true and they are recommendthe management.


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LIMITATIONS

Every study conducted may have certain shortcomings and unfortunately mine is also a simcase. A few errors have crept in despite mine best efforts to avoid them but it is expected

still mine study and findings are very much relevant.

y An error may have been due to the samples taken not conforming to the act population; this is because the sample was a convenience sample.

y Certain questions which are not properly responded by the Respondents.y Personal bias or personal error of the interviewer might also have crept in, some ca

while interpreting the respondents.y There are several customers who dont show proper interest in filling the questione

they feel that they wont get any benefit after filling the questioners and its just a wof time for them.


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RECOMMENDATIONS AND SUGESSTIONS

y To satisfy their customers and for good dealings in future, the HDFC LTD should make prompt disbursement of loan amount to the customers so that they can buy or constr

their dream home as early as possible..y The HDFC LTD should use easy procedure or say, less lengthy procedure for the

sanctioning of loan to the customer.There should be less number of legal formalities, incase this exists, then, these should be completed in less time.This will be helpful inattracting more customers.

y Company should enter into tie ups with reputed builders and development authoritiey HDFC should increase their reach by penetrating into rural and semi urban areas .They

should also capitalize on present customer base by generating referrals .y Aggressive marketing and great publicity through newspapers, hoarding, websites

other medias should be done.

y Restriction to be reduced to bare minimum for loan advances and for repayment. Foe.g. offer long-term repayment facilities and have no age restriction to choosingrepayment.

y The maximum age for repayment could be increase to 65-70 years of age.Such facilitywill help grow fast retail segment of the bank.

y Offer multiple repayment loans.

y Service class to be exploited by offering special reduced rates and linking therepayment from the source from where the pay-cheque to the employee is issued.Thisneeds to undergo special contract with government organization to ensureimplementation.


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BIBLIOGRAPHY


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ANNEXUREQUEST IONN AIRE

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

SECTOR 8, CHANDIGARH

Good Morning Mam/Sir,

We are summer trainees doing our summer industrial training at HDFC Limited. As a part o project we would like to get some valuable information.

On behalf of HDFC Limited, I want to thank you for giving us the opportunity to serve yPlease help us in filling up the questionnaire so that we can serve you to the best of our abilThis information will help us to further improve our products and will give us a feedback onservice standards.

SPECIAL INSTRUCTIONS:The object of this study is to collect primary data from therespondents on the above subject purely for the fulfillment of the requirements of the instituFollowing pages contain number of questions on various aspects. Each question carries a nuof alternatives.Please read the question carefully and indicate your attitude by marking () in check box of alternative that is more appropriate for you.There are no rights or wrong answers.Please answer all the questions without omitting any.Your answers shall be treated asSTRICTLY CONFIDENTIAL.

Name: - _______________________________________________________________________

Contact no.:- ________________________

Email: - _______________________________________________________________________

Occupation:Self-Employed Employed (Private)

Employed (Government)

Annual income:


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Q1.Purpose of Visit :

Deposit Enquiry Home Loan Enquiry

Any other

Q2.How did you come to know about HDFC Ltd .?

From friends, relatives From internet

From existing employees Other sources

Q3.How long have you been availing services of HDFC Ltd ?Less than a year 1 -3 years

3-5 years Above 5 years

Q4.Which rate of inte rest scheme you prefe r for ho using loan?

Fixed Floating Dual

Q5.Which of the followi ng schemes of loans you are f ami liar with

Trenching Conversion

Prepayment Tick if not aware

Q6.Have you ever tak en a HOME loan f rom any othe r bank?

No

Yes (.>) name of the bank Q7.Are you aware of the followi ng value added schemes provided by HDFC? If yes, else othe rwise, NO-

Life Insurance cover

Home Insurance cover


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International credit card facility

Q8.Will you tak e anothe r loan f rom HDFC in f uture or wi ll you recomme nd our services to someo ne?

Yes No

Q9.How wi ll you rate the followi ng services of HDFCon a scale of 5:

Facto r 1(Very good) 2(good) 3(average) 4(bad) 5(below expected level)

Proportio n of Financing

R epayme nt mode

Time tak en fordis burseme nt

Inform atio n de livery/ transparency of the process

Locatio n acceptance

KYC norms

Flexibility in wo rk proced ures

Beh avior of the st aff


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Q10.Inwh at areas HDFCis bette r th an othe rs :( if YES;else BLANK )

Facto rs/Bank s SBI ICICI AXIS IDBI

Prepayme nt ch arges

Proportio n of Financing

Time tak en for dis burseme nt

Processi ng fees

Transparency of proced ure

Locatio n acce ptance

Top up Loan

Telepho ne/ inte rnet services

Flexibility in Work Proced ure

R eputatio n of the instit utio n

Em ployee courtes y

Promotio n st rate gy

Top up loan


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Inte rest Rate

Pay-back period

Documents

54199223 a Report on Comparative Study of Home Loan Amp Customer Satisfaction