INTRODUCTION

Commercial bank is a bank which promotes commercial activities by lending for various commercial activities. Commercial banks in India are controlled or owned by three different groups of organizations. They are public sector, private sector, and foreign banks The major function of a commercial bank is accepting deposit from customers and giving loans to them. It includes various types deposits and various of loans to the customers. Among the loans, home loan plays a vital role. This study includes information related to Chennai city. Various commercial bank offers home loan to the customer at different rate of interest. Taking a home loan at this time is easy. But to find a proper home at the right price is difficult in this boom market. In Chennai home loan activity is on peak and it is difficult to take a decision without knowing owner financing the exact position in the market at the present time Real estate market in Chennai is growing very rapidly. Govt. has also allowed 100 % foreign direct investment in this sector and many foreign construction companies like Morgan Stanley , RIRIC company etc. have started investing here. Real estate home loan given by commercial bank in

market owner financing in Chennai focuses on two major areas retail (or Official) and residential. In both sectors there is a marked growth and it is expected that it will rise still further

Growing economy in segments like IT, e-commerce and others have resulted in increasing the buying power of common man and naturally the first thing to buy is always a home. People with smaller homes are going for bigger homes or a second home and thus more and more colonies are being developed. People go for home loans and new incentives are being given every day. The biggest incentive is the tax rebate offered on the installmentpayments. In last eight years the prices in the residential market shot up by 8 to 15 %. Demand for the homes in the price range of 8 to 20 Lakhs has shot up and due to this more and more housing complexes are coming up selling the flats of this range. But on the whole the prices here are lower than the prices for the same size flats in Delhi and Bombay. They are even lesser than prices in Bangalore. Due to this many companies, domestic and multinational, have been attracted to this city. The future trend seems to be quite bright though the prices will level off. The rentals may increase by 8 to 10 % in near future as more and more Mncs are shifting here.

These days the investments in Banks is not as popular as the interest rates have gone very much down. The stock market also keeps on wavering and the mutual funds give very less return. Hence the housing sector remains the most popular investment. Chennai is well connected hence is very popular with the NRIs also. They also like to invest in the housing sector which further booms this market.

INTRODUCTION TO HOME LOANS

Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all gathering funds little by little to afford ones dream. Home is one of the things that everyone one wants to own. Home is a shelter to person where he rests and feel comfortable. Many banks providing home loans whether commercial banks or financial institutions to the people who want to have a home. Many banks are providing home loans at cheapest rate to attract consumers towards them. The more customer friendly attitude of these banks, currently offer to consumers cheapest loan over homes. In view of acute housing shortage in the country, and keeping in mind the social economic role of commercial banks in the present times, the RBI advised banks to encourage the flow of credit for housing finance. 3

With the RBI reducing bank rate, the home loan market rates nose- diving by 50 basis points. The ICICI Bank and Standard chartered bank has become the first player in this sector to announce a housing loan for a 20 years period. No doubt it will enhance the end cost of the home but it will facilitate people to plan their house over longer duration Now, it has been made easy for a person to buy that dream house which he dreamt of long ago.

ADVANTAGES OF HOME LOANS

The various benefits of home loans arising to the customers are:Attractive interest rates The various banks offer attractive interest rates to boost and help their customers. Many banks provide loans on fixed or floating rates to facilitate consumers as per their needs. Help in owning a home The home availed by a person with the help of banks, because they provide technical and financial assistance to customers for owning their dream home. No requirement of guarantor The commercial banks now a days, liberlise their laws regarding home loans. Some of banks dont even require the guarantor to grant loan to their consumers. They also make consumers free by reliving him to find a guarantor to complete the proceedings of availing loan. Door-Step Services

These door to step services are provided from enquiry stage to the final disbursement takes place such services are beneficial for customers in present busy life. Banks like ICICI bank and standard chartered bank provide door to step services to customers to borrow loan.

Loan period There are many banks which provide maximum loan tenures upto 15-20 years based on the loan amount and the creatibility of customers. This relieves the customers to repay loan amount till a long period. For accidental death insurance Some banks provide free accidental death insurance with housing loan which is also beneficial for the customers. These benefits or advantages of home loans are responsible for making than so popular among customer that a person who dont have their home and want to buy, they do it with home loan. Home loans help such persons in making their dream home.

Deciding a house before loan Home loans are relatively easy to get these days as the banks and financial institutions wish to tap this source to the maximum. In general people go for mortgage loan after paying some down payment. All that side is easier than deciding which house to buy .The decision has to be taken taking all the precautions .As has been seen the housing activity is very much on in certain parts of the city. First step should be to have an idea about the price and facilities being offered. There are some good sites which give all the relevant information. The experts name the following few: 1 real-estate chennai.com
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 2 99acres.com 3 ongaia.com Apart from this also many are available on the net. Apart from knowing all the details following points must be considered: Buying a flat 1. Check whether the approved plan is displayed on site 2. Check whether the flat is constructed according to the plan. 3. Verify whether all the undivided share of land is transferred to your name 4. Check whether the completion certificate has been obtained 5. Check the details at CMDA

Buying a plot 1. Check whether the seller has a right over building 2. Check whether the plan has been approved by CMDA and local bodies. 3. Check whether the roads etc. have been given to the society and are maintained by them

4. Check whether the plan is to the rule

5. Check whether the documents etc are all attached 6. Avoid unauthorized colonies.

INDUSTRY PROFILE
Banking scenario in India The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a

place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Cooperative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending).

The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India act as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., After the nationalization of 14 commercial banks in 1969, no new private banks were licensed by RBI in the country though there was no legal bank on the entry of private sector banks. The Narasimham Committee report of 1991, has envisaged a larger role for private sector banks. In recognition of the need to introduce greater competition with a view to achieving higher productivity and efficiency of the banking system, RBI issued few guidelines in January 1993 for the entry of private sector banks. It prescribed a minimum paid up capital of Rs. 100 crores for the new bank and the shares are to be listed at stock exchanges. Also the new bank after being granted license under the Banking Regulation Act, shall be registered as a Public Limited Company under the Companies Act, 1956. Subsequently 9 new commercial banks have been granted license to start banking operations. The new private sector banks have been very aggressive in business expansion and are also reporting higher profit levels taking the advantage of technology and skilled manpower. In certain areas,
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these banks have even outcrosses the other group of banks including foreign banks. These Banks accepting deposits from customer and granting loans to various sectors.

COMMERCIAL FINANCING
The commercial financing model in Indian banking can be broadly categorized into project finance and working capital finance. These two segments form the pivot around which banks operate. Project Finance Banks offer long term and short terms loans to business houses, corporations to set up their projects. These loans are disbursed after the approval from the banks core credit validating committee. In India, there are 11 national level land 46 state level financial and investment institutions that cater to long term funding requirements of the industry. The project finance segment is highly competitive with various players offering innovative schemes to entice corporate. Working capital In order to meet the diverse needs and requirements of the business community, banks offer working capital funds to corporate. Working capital finance is specialized line of business and is largely dominated by the commercial banks This is the commercial banking operation in our country.

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PRODUCT PROFILE OF ICICI

ICICI home loans have freebies and benefits like easy interest rates, simplified documentation, and doorstep service and free Personal Accident Insurance. In terms of interest rate and other facilities, the choice of home loans it offers has loads of benefits. These loans sponsor the purchase, construction of a new home, home extension or renovation, purchase of land for residential use and loans by mortgaging an existing residential property. ICICI SMART FIX HOME LOAN, For the first 3 years the borrower pays at fixed interest rate and the fourth year onwards, the loan gets switched to the prevailing floating interest rate. ICICI MaxMoney Home Loans Have high loan eligibility with a lower initial installment. In this scheme, one can get up to 30% higher amount against one's current income. Also the installment amount gets stepped up over the years. ICICI Bank offers Home Improvement Loans for

refurbishment of one's home. One can avail of loan up to Rs. 50 lakhs. The loan covers up to 70% of the cost of improvement and the repayment period is 15 years
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ELIGIBILITY CRITERIA FOR RESIDENT INDIANS

Minimum age is 21 years. Applicant must be salaried or Self-employed. For availing land loans, the property should be for residential use and purchased from a development authority or a registered co-operative society. The land in question must be for construction of a house, with clearly marked boundaries, leaving no room for legal wrangle on this count

For purchase/construction or extension of a non-residential property, the applicants has to be professionally qualified, self employed individuals with 3-years' work experience

LoanAmount: ICICI Bank offers home loans for purchase or construction of house and the loan amount to the extent of 85% of the cost of the property including the stamp duty and registration. The loan starts from 2 lakhs. The maximum loan that can be granted to an NRI for home loans is INR 1 crore while the minimum is INR 5 lakhs. Resident Indians are eligible for certain tax benefits on principal and interest components of a housing loan under the Income Tax Act, 1961

Repayment: Maximum loan tenure is of 20 years. The loan must terminate before or when the borrower turns 65 years of age or before retirement, whichever is earlier.

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Repayment tenure for Salaried NRI applicants is up to 15 years and for Self-employed is up to 10 yrs for purchase or construction of a new home. Maximum loan eligibility is 85% of the total cost of the property

Rate of Interest: ICICI Rate of Interest (p.a.) Amount Fixed Floating < 20 lakhs 10.5% 9.5% > 20 lakhs 13% 12%

PRODUCT PROFILE OF SBI

State Bank of India (SBI), the largest bank in India, is one of the market leaders in the home loan segment. It offers home loans for a variety construction of new House/ Flat, Purchase of an existing House/ Flat, Purchase of a plot of land for construction of House and

Extension/ repair/ renovation/ alteration of an existing House/ Flat. SBI Maxgain Home Loans enable the borrower to avail the loan as an Overdraft. SBI-Flexi Home Loans
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offer the facility to avail Home Loan with a one time irrevocable option of combination of fixed and floating interest rates, and enable borrowers to hedge the risks arising due to unfavorable movement in interest rates due to interest rate volatility. SBI-Realty Home Loans is an exclusive scheme to suit the requirements of borrowers intending to purchase a plot of land for construction of a house. SBI-Freedom Home Loans is meant for NRIs, enabling the borrowers to avail loan by pledging other securities like Banks deposits/National Savings Certificates/ Life policies etc. standing in the name of the applicant/ third party ,thus doing away with the hassles of mortgage formalities. 'SBI-Freedom' Home Loans are customized for high net worth individuals.

Eligibility:

Minimum age of 18 years as on the date of sanction Steady source of income.

To enhance the eligibility for the loan amount, there is an option to club income of your spouse and children and expected rent accruals from property proposed while computing eligible loan amount.

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Eligibility Criteria:

Minimum age 21 years Valid Indian Passport (for NRIs)/ valid foreign passport (for PIOs) Steady source of income Employed abroad for at least 2 years Valid job contract or work permit

Minimum net monthly income (NMI) of US$ 500 or minimum Net Annual Income (NAI) of US$ 6000/- (or its equivalent in an Interest Rates: SBI Rate of Interest* Tenure Up to 5 years Rate of Interest 10.75%

Above 5 years and up to 20 11.25% years

Repayment: Repayment is permitted up to 70 years of age. For applicants up to 45 years of age, the maximum period is 20 years and for those over 45 years of age, it is 15 years. The repayment can be done in EMIs

PRODUCT PROFILE OF HDFC

HDFC or Housing Development Finance Corporation Ltd. is India's largest housing finance company with a market share of 55% in loan disbursals. Being in the business for over 25 years, HDFC has an impressive loan portfolio for varied housing finance needs. In the home loan segment, HDFC offers home loans for individuals to purchase (fresh /resale) or construct houses.

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Eligibility criteria for Resident Indians:

Stability and continuity of occupation and savings history Repayment capacity takes into consideration factors such as income, number of dependants, spouse's income, assets, liabilities The applicant should have a steady source of income.

Eligibility criteria for NRIs:

Loan eligibility subject to 85% of the cost of the property Repayment capacity assesses factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities Stability and continuity of occupation and savings history

Rate of Interest: For Resident Indians, in the fixed rate category, HDFC offers loans up to Rs 10,000,000 at the rate of 13.25%. In the floating/adjustable rate category, loans are given at a rate of 11.25%.

Loan Amount: HDFC lends a maximum amount of Rs 1 crore. HDFC finances up to a maximum of 85% of the cost of the property inclusive of agreement value, stamp duty and registration charges. HDFC's Home Improvement Loan facilitates internal and external repairs and other structural improvements

PRODUCT PROFILE OF CITI BANK

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Citibank under the aegis of Citigroup Inc. was founded in 1812 and is today's pre-eminent financial services company. It provides home loans to customers across all sections catering to the Resident and Non-Resident Indians, both Salaried and Selfemployed. In response to the realty boom sweeping India, Citibank has a bouquet of offerings including loans for the following: Ready Property Under Construction property Self-Construction Plot plus Self Construction

Eligibility criteria for salaried individuals: Gross annual income of Rs 1, 00,000 or above. 23 years of age and above, with maximum age of 58 years or retirement age, whichever is earlier at the time of loan maturity. At least 2 years of work experience. Eligibility for Self-employed individuals: Gross annual income of Rs 1, 00,000 or above. 23 years of age and above with maximum age of 58 years or retirement age, whichever is earlier at the time of loan maturity. 3 years of continuous operation.

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Citibank Rate of Interest

Tenure 15 years

Fixed 9.75%

Floating 9.00%

Loan Amount: Home Loans are in the range of Rs 2.1 Lacs to Rs 5 Crores. Self-construction loans go up to Rs 2 Crores. Top-up loan up to Rs 1 Crore is available. Dated Cheques You can choose tenure up to 25 years. The loan can be repaid either through Post (PDCs), Standing Instruction (SI) facility from your Citibank banking account or through Electronic Clearing System (ECS) from your non Citibank banking account

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PRODUCT PROFILE OF STANDARD CHARTED BANK

Standard Chartered Bank opened its first overseas branch in Kolkata, India but is now headquartered at Mumbai. Today it is the largest foreign bank in the country. It took over the Grind lays Bank from ANZ Grind lays to be in a better position to deliver significant benefits in terms of network, products and services

Eligibility criteria for resident Indians:

Minimum age 21 years as on the date of sanction. Steady source of income and stable job Individuals, salaried, professional and self-employed can gain from a flexible tenure from 5 years to 20 years and no guarantors as part of the eligibility criteria.

Eligibility criteria for NRIs:

Minimum age 21 years and graduate Valid Indian Passport (for NRIs)/ valid foreign passport (for PIOs) Steady source of income. Valid job contract or works permit.

Rate of Interest: Standard Chartered charges interest at the rate of 9.25 per cent on an ordinary home loan and at 9.75 per cent in case of the Home Saver, which is a special scheme for 20-year tenure. Standard Chartered (Rate of Interest)

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Amount Fixed Floating

< 20 lakhs 10.5% 9.5%

> 20 lakhs 13% 12%

Repayment Terms:

The repayment period extends up to 20 years for Resident Indians and up to 7 years for Non-Resident Indians. You can choose among the options of Post Dated Cheques (PDCs), Electronic Clearing System (ECS) and Standing Instructions on your Standard Chartered account to give repayment instructions. Once you have completed six months of repayment on your home loan, you are eligible to apply for a top up loan, over and above your existing home loan.

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PRODUCT PROFILE OF INDIAN BANK

Eligibility:

Minimum age of 18 years as on the date of sanction Steady source of income.

Eligibility Criteria:

Minimum age 21 years Valid Indian Passport (for NRIs)/ valid foreign passport (for PIOs) Steady source of income Employed abroad for at least 2 years Valid job contract or work permit Minimum net monthly income (NMI) of US$ 500 or minimum Net Annual Income (NAI) of US$ 6000/- (or its equivalent in any other foreign currency)

Interest rate: Fixed rate 11% Floating rate 12.5% Repayment: Repayment is permitted up to 70 years of age. For applicants up to 45 years of age, the maximum period is 20 years
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and for those over 45 years of age, it is 15 years. The repayment can be done in EMIs.

NEED FOR THE STUDY

The financial sector is key to any countrys economy. Banking activities play a vital role in development of the economy. The financial Organizations provides various types of loans .In that Home loan is one of the important area To study about the home loans and how the customer pursues the home loans will be useful to the existing home loan providers and for the new comers. This study focuses on awareness of customers regarding home loans and how they pursue the existing home loan system.

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LIMITATIONS

The study suffers from the following limitations:

1. Time and area of the study is limited for the present study 2. Some of the information provided by individual customers which are believed to be true may not be so.

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OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVES:
Primary objective of the study is to identify the Home loans

given by Commercial Banks

SECONDARY OBJECTIVES:

To collect suggestions from customers regarding home

loans given by commercial banks. To identify which commercial bank is preferred by customer

for getting home loans.

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To study various attributes expected by the customers while

taking home loans from the commercial bank. To find out the advertisement effectiveness of various

commercial banks regarding home loans.

RESEARCH METHODOLOGY

The Study includes two types of data collection methods namely Primary and secondary data. Primary data collected through survey of various customers The study also includes data of 8 commercial banks Secondary data collected from the websites of commercial banks and newspapers

RESEARCH STEPS
The following steps are adapted for the study: Study about the commercial bank. Study about the home loans Setting of objectives

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Instrument design Pilot survey Main survey Tabulation Analysis and interpretation Findings Conclusion.

TABLE 1 GENDER OF RESPONDENTS

Respondent Male Female Total 101 49

INFERENCE
Male respondents are 67.33% Female respondents are 32.67%

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GRAPH SHOWING THE GENDER MIX

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Total 120 100 80 60 40 20 0 Male Female Total

TABLE 2 AWARENESS ABOUT HOME LOANS

Awareness about home loans Yes Total 133
29

No

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INFERENCE
Awareness about the home loans among the people are about 88.67% Non awareness about the home loans among the people are about 11.33%

GRAPH SHOWING AWARENESS ABOUT HOME LOANS

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To ta l

No

To ta l

Ye s

20

40

60

80

100

120

140

TABLE 3 FACTORS INFLUENCING HOME LOANS

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Factors Interest rate Repayment period Brand image Security needed

Value 78 37 23 12

Total 150 150 150 150

INFERENCE
Factors which influence the home loans are, 52% people preferred interest rate 24.67% people preferred repayment period 15.33% people preferred Brand Image 8% people preferred security needed

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GRAPH SHOWING FACTORS INFLUENSING HOME LOANS

160 140 120 100 80 60 40 20 0 Interest rate Repayment period Brand Image Security needed Value Total

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TABLE 4 LOW INTEREST RATE

Brand name SBI ICICI HDFC Citi bank Standard charted Indian bank Value 47 41 36 7 6 13 Total 150 150 150 150 150 150

INFERENCE
People perceived the following brand is meant for low interest rate than the other bank as follows 27.33% people preferred ICICI, 31.33% people preferred SBI, 24% people Preferred HDFC, 4.67% people preferred Citi bank, 4% people preferred Standard charted, 8.67% people preferred Indian bank

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GRAPH SHOWING LOW INTEREST RATE

160 140 120 100 80 60 40 20 0 SBI IC IC I HD F C C ITI B ank S tandard Indian bank charted Total V alue
Value Total

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TABLE 5 PROMOTIONAL STARTEGIES FOR AWARENESS

Promotional strategies TV News paper Magazines Radio

Value 91 32 5 22

Total 150 150 150 150

INFERENCE
Promotional strategies to create awareness about home loans among the people Are, 60.67% people preferred TV 21.33% people preferred News papers 3.33% people preferred Magazines 14.67% people preferred Radio

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GRAPH SHOWING PROMOTIONAL STRATEGIES

Promotional strategies

TV News paper Magazines Radio

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TABLE 6 HOME LOAN TAKERS

Home loan taker Yes No Total

Total 89 61 150

INFERENCE
59.33% have taken home loan 40.67% have not taken home loan

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GRAPH SHOWING HOME LOAN TAKERS

Total

160 140 120 100 80 60 40 20 0 Yes No Total Total

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TABLE 7

INTERESTED PEOPLE FOR TAKING HOME LOAN

YES NO 133 17 150 150

INFERENCE
88.67% People are interested in home loans 11.33% people are not interested in home loans

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GRAPH SHOWING INTERESTED PEOPLE FOR TAKING HOME LOAN

160 140 120 100 80 60 40 20 0 1 2 YES NO

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TABLE 8 REASON FOR TAKING HOME LOAN

Reasons High rental Benefits Low interest rate All the above Value 35 18 32 65 Total 150 150 150 150

INFERENCE
23.33% People preferred High rental 12% people preferred Benefits 21.33% people preferred Low interest rate 43.33% people preferred All the above

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GRAPH SHOWING REASON FOR TAKING HOME LOAN

Value

High rental B enefits Low interes t rate All the above

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TABLE 9

DIVERSIFIED HOME LOAN PRODUCT

Brand HDFC ICICI SBI CITI BANK STANDARD CHARTED INDIAN BANK Value 51 42 47 2 2 6 Total 150 150 150 150 150 150

INFERENCE
34% People preferred HDFC Home loans 28% people preferred ICICI Home loans 31.33% people preferred SBI Home loans 1.33% people preferred Citi bank 1.33% people preferred Standard charted 4% people preferred Indian bank

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GRAPH SHOWING DIVERSIFIED HOME LOAN PRODUCT

160 140 120 100 80 60 40 20 0 HDFC ICICI SBI CITI BANK STANDARD CHARTED INDIAN BANK Value Total

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TABLE 10 RANK
BRAND ICICI SBI HDFC CITI BANK STANDAR D CHARTED INDIAN BANK 1 27 76 31 7 4 5 2 53 24 41 9 8 15 3 11 22 28 27 21 41 4 21 13 24 37 45 25 5 20 8 16 39 26 41 6 18 7 10 31 46 23 TOTA L 150 150 150 150 150 150

INFERENCE
People preferred the following Ranks for the brands as follows FIRST RANK

18% people preferred ICICI, 50.67% people preferred SBI, 20.67% people Preferred HDFC, 4.67% people preferred Citi bank,

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2.67% people preferred Standard charted, 3.33% people preferred Indian bank

SECOND RANK

35.33% people preferred ICICI, 16% people preferred SBI, 27.33% people preferred HDFC, 6% people preferred Citi bank, 5.33% people preferred Standard charted, 10% people preferred Indian bank,

THIRD RANK

7.33% people preferred ICICI, 14.67% people preferred SBI, 18.67% people preferred HDFC, 18% people preferred Citi bank, 14% people preferred Standard charted, 27.33% people preferred Indian bank,

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FOURTH RANK

14% people preferred ICICI, 8.67% people preferred SBI, 16% people preferred HDFC, 24.67% people preferred Citi bank, 30% people preferred Standard charted, 16.66% people preferred Indian bank,

FIFTH RANK

13.33% people preferred ICICI, 5.33% people preferred SBI, 10.67% people preferred HDFC, 26% people preferred Citi bank, 17.33% people preferred Standard charted, 27.33% people preferred Indian bank,

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SIXTH RANK

12% people preferred ICICI, 4.67% people preferred SBI, 6.67% people preferred HDFC, 20.67% people preferred Citi bank, 30.67% people preferred Standard charted, 15.33% people preferred Indian bank,

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GRAPH SHOWING THE RANK

160 140 120 100 80 60 40 20 0 1 2 3 4 5 6 TOTAL ICIC I SBI HD FC CITI BANK STANDARD C HARTED INDIAN BANK

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FINDINGS
1. 2. 3. 4. 67.33% respondents are male and 32.67% are female. 88.67% people are aware about home loans. 52% people prefer interest rate as major factor for purchasing home loan. 24.67% people prefer repayment period and 15.33% people prefer brand image and 8% people prefer security needed as the major factor for purchasing home loan. 27.33% people feels ICICI & 31.33% people feels SBI offers low interest rate than others. 27% people feel HDFC offers low interest rate than others. 60.67% people prefer Television as the best promotional strategy to popularize home product. 21.33% people prefer News paper and 14.67% people prefer Radio as the best promotional strategy to popularize home product. 59.33% people are having home loan. 88.67% are interested to purchase home loan.
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5. 6. 7.
8.

9. 10.

11. 12. . 13. 14. 15.

23.33% people prefer home loan because of high rental charges. 12% people prefer benefits and 21% people prefer low interest rate as a reason for taking home loan. 43.33% people prefer all the above as a major reason for taking home loan. 34% people prefer HDFC, and 31.33% people prefer SBI, as the brand having diversified home loan product. 28% people prefer ICICI as the brand having diversified home loan product. People perceived the following Ranks for the home loan brands A. ICICI HOME LOANS Rank 1: 18% people preferred, Rank 2: 35.33% people preferred,

16.

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Rank 3: 7.33% people preferred Rank 4: 14% people preferred Rank 5: 13.33% people preferred Rank 6: 12% people preferred

B.SBI HOME LOANS Rank 1: 50.67% people preferred, Rank 2: 16% people preferred, Rank 3: 14.67% people preferred Rank 4: 8.67% people preferred Rank 5: 5.33% people preferred Rank 6: 4.67% people preferred B. HDFC HOME LOANS Rank 1: 20.67% people preferred, Rank 2: 27.33% people preferred, Rank 3: 18.67% people preferred

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Rank 4: 16% people preferred Rank 5: 10.67% people preferred Rank 6: 6.67% people preferred

C. CITI BANK HOME LOANS Rank 1: 4.67% people preferred, Rank 2: 6% people preferred, Rank 3: 18% people preferred Rank 4: 24.67% people preferred Rank 5: 26% people preferred Rank 6: 20.67% people preferred

D. STANDARD CHARTED HOME LOANS Rank 1: 2.67% people preferred, Rank 2: 5.33% people preferred, Rank 3: 14% people preferred

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Rank 4: 30% people preferred Rank 5: 17.33% people preferred Rank 6: 30.67% people preferred

E.

INDIAN BANK HOME LOANS Rank 1: 3.33% people preferred, Rank 2: 10% people preferred, Rank 3: 27.33% people preferred Rank 4: 16.66% people preferred Rank 5: 27.33% people preferred Rank 6: 15.33% people preferred

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SUGGESTIONS
Interest rate plays a vital role in home loans. Commercial bank should not increase interest rate other wise they will lose customer. Promotional strategy especially television advertisement can be applied to create awareness and to make home loan products popular. SBI should increase advertisement which is the better tool for reaching customer.
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Commercial bank can use direct sales also as a promotional strategy. Home loan Melas , festival offers are also effective.

CONCLUSION
The reason for this study is to get reliable information about home loans and to create awareness among the customer about home loans. This study will be useful for both customers and bankers

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 This study will make it easy for the customer, to find out which bank is suitable to get his home loan This study includes interest rates of various commercial banks, which will help the customer. This study will help the commercial banks to improve their home loan products , and find out their position among the people

QUESTIONNAIRE
The comparative study on Home Loans given by commercial Banks.

1. Customer Name: 2. Age: 3. Address

4. Gender Male Female

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5. Marital Status single 6. Educational Qualification a) Below 10th c) Graduation graduation 7. Annual income (a) Below 1, 00,000 2, 00, 000 and above (c) 2, 00,000 to 3, 00,000 (d) 3, 00,000 (b) 100,000 to b) 10th to 12th d) post married

8. Do you aware about the Home Loans (a) Yes (b) No

9. Rank the factors consider for Home Loans. (a) Interest rate (c) No. of installments needed. (b) Repayment period (d) Security

10. How do you select the bank for getting loans. rate name (a) Service (c) payment method (b) interest (d)Brand

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11. Have you seen any advertisement regarding Home Loans? (a) Yes 12. if yes, where (a) TV Paper (c) Magazines 13. Have you taken Home Loan? (a)Yes (b) No (b) No

(b) News (d) Radio

14. If yes, which Bank you are taken the loan. ______________. 15. If No, Are you interested to buy a Home Loan? (a)Yes 16. in rate for home loan your (b) No opinion which offers low interest

17. What is the reason for taking home loan ?

(a)High rental charges (b) Benefits (c) Low interest rate (d) All the above

18. Which bank is offering diversified home loan products?

(a) ICICI (c) HDFC

(b) SBI (d) CITI

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(e) STANDARD CHARTED BANK

(f) INDIAN

19. Rank the following brands between 1 and 6 (a) ICICI (b) SBI (c) HDFC (d) CITI (e) STANDARD CHARTED (f)INDIAN BANK

QUESTIONNAIRE FOR THE BANKERS

1. Name

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2. Bank 3. Designation 4. How do you select the customer for granting home loan? (a)Based on salary Education (c) Based on security (b) Based on (d) All the above

5. What is the minimum age limit to apply home loan (a)18 years (c) 23 years (b) 21 years (d) 25 years

6. What type of interest rate you are offering to the customer (a)Fixed rate of interest (b) Floating rate of interest (c) Both 7. What is the fixed interest rate? (a)10% (c) 11.5% (b) 11% (d) 12&above

8. What is the floating rate of interest? (a)11% (b) 11.5%

(c) 12% (d) 12.5&above 9. How do you calculate the loan amount?

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(a)Based on document produced (b) Based on salary slip (c) Based on the property value (d) all the above 10. What is the processing time limit for the home loans (a)Within one month months (c) 3 to 4 months above (b) 2 to 3 (d) 5 and

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BIBLIOGRAPHY

BOOK REFERRED:

BANKING THEORY, LAW AND PRACTICE B.Santhanam

WEBSITES:
http://www.hsbc.co.in http://www.standchartered.com/in/ http://www.statebankofindia.com http://www.online.citibank.co.in http://www.icicibank.co.in http://www.indianbank.com

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