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  • 8/14/2019 RM Proposal Group 15

    1/5

    Proposal for Term Project on

    Factors affecting the customers while taking the Home Loan

    Submitted on October 30th

    !0"3

    #n partial fulfilment of the re$uirement for the %esearch &ethodolog'

    course in the &() Programme *FT+,!0"3-!0".

    Submitted to

    Prof/ Tripurasundari oshi

    Submitted b',

    1imple 2otai "3"3"

    anice 4ordeiro "3"3!0

    Prateek Sabharwal "3"335

    6ogita &orandani "3"373

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    Background:

    )s prominentl' said there are three main basic needs of a common man 8i9, :roti

    kapda aur makaan *food clothing and housing+/ Howe8er with fi;ed salaries and e8er

    increasing e;penses and inflation pressure the thought of owning a house has nowada's

    become a farsighted dream with estate rates touching the sk' in metros/ #n such a situation

    the banks and financial institutes ha8e emerged as the sa8iour e;tending funds to people in

    e;change of collateral to fulfil their dreams of owning a house/ There is a great demand for

    housing which is supported b' the estimate re$uirement of !0 million houses< b' =H(/

    )s per the organi9ed financial sector the a8erage mone' being ad8anced for purchase

    of housing is in the range of !0 to !. thousand crores e8er' 'ear o8er the last fi8e 'ears/ >itha low demand of funds in the industrial sector pro8iding finance for housing seemed

    attracti8e to the banks to channeli9e their fund/ &oreo8er in the housing sector ad8ances are

    gi8en against mortgage of assets so the funds remain safe/ )nother factor responsible for the

    growth in this industr' is the falling interest rates of loans which offer the customers to

    approach those gi8ing out finance at lowest rates/ Hence the 8arious financing companies like

    =H( nationali9ed banks< L#4HFL H1F4 #4#4# S(# etc are the major pla'ers gi8ing out

    loans to customers for housing/

    Problem Statement:

    )n increasing beha8iour obser8ed in the purchase of home loan in #ndia/ This

    research is carried out to find the components that contribute towards such increasing nature

    in the housing sector and also what is the =P)- =on performing )sset rate for the home loan

    whether it also shows the same beha8iour/ >hat are the ke' emerging trends in the housing

    finance segment? The impact of these components has created on the banks while gi8ing theloans/ How the banks are attracting the customers for home loan with minimi9ing the =P)

    rate for the same?

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    Objectives:

    The purpose of this research is to disco8er which factor majorl' affects the customers

    while purchasing a home loan/ Specificall' we intend to identif' the components used b'

    banks to attract the costumers for loans/ 4omponents like interest rate less paper work ease

    of credit access and man' others has contributed to the housing industr' of #ndia The

    objecti8es of the stud' are,

    To stud' the 8arious factors affecting the customers while taking the loan

    To stud' the potential future of the home loans in #ndia

    To stud' the =P)- =on Performing )sset rate for home loan

    Literature Review:

    Housing Credit Situation in Eig ties! b" Lall #ina" $%&'()This article talks about how in "5@ also the demand for the home alone was at peak

    and the suppl' of the loan e;ceeded the demand b' a huge margin/ )lso the people who gotthe loan got onl' AB of the amount as loan and rest the' had to put in from their pocket thehuge down pa'ment/ #t also ad8ocates for flowing of larger capital in the house loan sector/

    Housing in t e *ew +illennium: , Home wit out E-uit" is .ust a Rental wit /ebt!b" .os ua Rosner $011%)

    This article talks about the boom in the housing sector of CS which continues togrow in leaps and bounds well abo8e the D1P of the countr'/ #t gi8e this increase in thegrowth due to 8arious factors like reducing the down pa'ment from !0B to 0 B shifting ofthe focus on the lower income group and changes in the appraisal process which led to widespread o8er appraisal or o8er8aluation problem/

    2m3ortance o4 t e Researc :

    The housing loans contribute to about @B in D1P of #ndia/ Housing being the basic

    need the demand constantl' grows and so we can e;pect a potential growth in the future/ The

    research will pro8ide the bridge between the consumerEs demands and bankEs supplies/ #t will

    also pro8ide an understanding to the factors that ha8e influenced the consumers while

    purchasing home loan and also the components which were established b' banks to target

    masses for the home loans/

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    Researc /esign:

    Sample Selection and Size

    ) sample of ".0 indi8iduals purchased home loans from different cities like )hmedabad

    Surat and Dandhidham of Dujarat/

    Data Collection Method ) sur8e' will be conducted ha8ing $uestionnaire on impact of home loans repa'ment

    of loan npa rate/

    >e will also arrange inter8iews with the indi8iduals who took huge amount of loan

    and with the bank managers for impact on banks and suppl' to such increasing

    demand/

    Limitations

    The stud' will ha8e following limitations,

    The data will be collected from )hmedabad and Surat< the difference in infrastructure

    of both the cities will influence the need of housing loan/

    The respondents will be indi8iduals so the' can be highl' subjecti8e as each person

    has different set of priorities/ Sur8e' will be conducted after lapse of significant passage of time since the

    indi8idual ha8e actuall' gone through the decision making process/

    *ature and 4orm o4 results:

    ) detailed report on the factors with percentage signif'ing the amount of impact on

    the consumer while purchasing home loan/ The trends obser8ed in housing finance segment from the banks and consumers

    aspect/

    The =P) rate affects the housing sector and the factors that will minimi9e the current

    =P) rate/

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    5uali4ication o4 t e Researc ers:

    The research team comprises of four members namel' 1imple 2otai anice

    4ordeiro Prateek Sabharwal 6ogita &orandani/ The researchers are undertaking &()-Full

    Time and ha8e keen interest in financing acti8ities/ One of the member- anice has beene;posed to banking sector as her famil' members are working with national banks of #ndia/

    Two of the membersE PrateekEs and 6ogitaEs famil' has purchased home loan once while

    1imple has not e;perienced the such ser8ices from bank because of which she will be able to

    pro8ide different 8ision for the same aspect/

    Thus this di8ersit' will help us anal'se the situation better/

    Sc edule

    )fter anal'9ing the human ps'che the set of $uestionnaire will be read' within "0-"! da's

    from the start of the project/

    The data collection is e;pected to be completed in "!-". da's/

    )nal'9ing the data and preparing the report will take around "0-"! da's/

    O8erall the whole project will take 3!-35 da's appro;imatel'/