Anamika Pathak 2.docx

A TRAINING REPORT ON (THE STUDY ON HOME LOAN APPRASIAL OF BANK OF BARODA) Submitted to: Satyug Darshan Institute of Engineering and Technology By: (ANAMIKA PATHAK) Roll No.-6027252 Batch 2016–2019 In Partial Fulfillment of Bachelor of Business Administration (IIFBS) MAHARSHI DAYANAND UNIVERSITY ROHTAK (HARYANA) (November, 2018)

Satyug Darshan Institute of Engineering and Technology BhupaniLalpur Road, Village Bhupani Faridabad - 121002, NCR, Haryana, India 1

DECLARATION

I,ANAMIKA PATHAK hereby declare that this project report is the record of authentic work carried out during the time period from

by

me in the partial

fulfillment of the requirement for the award of degree BBA (Industry integrated). This piece of work has not been submitted to another University your Institute for the award do fanny degree/diploma earlier.

Anamika pathak

Date:

2

3

BONAFIDE CERTIFICATE

This is to certify that Mr./Ms. Anamika pathak of Satyug Darshan Institute of Engineering and Technology has successfully completed the project work titled “the study of home

loan of bank of Baroda ” in partial fulfillment of requirement for the completion of Bachelor in Business Administration (IIFSB) course as prescribed by the MaharshiDayanand University, Rohtak, (HARYANA).

This project report is the record of authentic work carried out by him/her during the period from He / She has worked under my guidance.

Ms. Sneha Sharma Assistant Professor, BBA Department Project Guide (Internal) Date:

4

ACKNOWLEDGEMENT

It is a matter of Great Pleasure for me in submitting the project report on the study of home

loan of bank of Baroda for the fulfillment of the requirement of my course. I am thankful to and owe a deep gratitude to all those who have helped me in preparing this report. Words seem to be inadequate to express my sincere thanks to Ms. Sneha Sharma for her valuable guidance, constructive criticism, untiring efforts and immense encouragement during the entire course of the study due to which my efforts have been rewarded. Also not to be forgotten are the Lecturers of BBA IIFBS who contributed their ideas and suggestion.

5

PREFACE

This report presents the research, findings and recommendations resulting from the project, “the study on home loan of bank loan ”, supported by Ms. Sneha Sharma. The objective was to compile and synthesize information on the status of loan appraisal. 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 satisfaction towards Home Loan management activities consistent with its mandate to “promote the orderly, integrated and comprehensive development, use and conservation of the loan. 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.

6

INDEX Sr. No.

TITLE

Chapter 1

Introduction to the topic

8-16

Chapter 2

Company Profile

17-27

Chapter 3

Review of Literature

28-32

Chapter 4

Research Methodology

33-40

4.1 Objective of the study

34

4.2 Scope of study

35

4.3Research design

36-39

4.4Limitations of the study

40

Chapter 5

Data Analysis and Interpretation

41-58

Chapter 6

Conclusion

59-60

Chapter 7

Bibliography

61

7

Page No.

CHAPTER 1

INTRODUCTION TO THE TOPIC

8

Introduction

The Indian economy is emerging as a one of the strongest economy of the world with the GDP growth of more than 8 % every year. A strongest banking industry is important in every country and can have a significant affect in supporting economic development through efficient financial services. Banking sector play a vital role in growth and development of Indian economy. After liberalization the banking industry in India under gone major changes. The process of liberalization and globalization has strongly influenced the Indian banking sector. A stable and efficient banking sector is an essential precondition to increase the economic level of a country. Liberalization policy introduced in the banking sector in India led to consolidated competition, efficient allocation of resources and introducing innovative methods for mobilizing of saving. The ability of banks to analyze its financial position for improving its competitive position in the market place. Most banks in India are currently focusing an expanding their service network. A growing Indian economy, expanding their various segments. After the recommendations of Narshinham Committee report with the entry of many private players. Indian banking industry has transformed into a customer oriented market. It now consists of multiple products and 9

customer groups and various channels of distribution. It is well known fact that an effective and efficient banking system is important for the long-run growth and development of the economy. The different products in a bank can be broadly classified into: 

Retail Banking.



Trade Finance.



Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the wholesale banking operations, which cover treasury operations, are at the head office or a designated branch.

Retail Banking: 

Deposits



LOANS, Cash Credit and Overdraft



Negotiating for Loans and advances



Remittances



Book-Keeping (maintaining all accounting records)



Receiving all kinds of bonds valuable for safe keeping

Trade Finance: 

Issuing and confirming of letter of credit.



Drawing, accepting, discounting, buying, selling, collecting of bills of exchange, promissory notes, drafts, bill of lading and other securities.

Treasury Operations: 

Buying and selling of bullion, Foreign exchange.



Acquiring, holding, underwriting and dealing in shares, debentures, etc.



Purchasing and selling of bonds and securities on behalf of constituents.

10

The banks can also act as an agent of the Government or local authority. They insure, guarantee, underwrite, participate in managing and carrying out issue of shares, debentures, etc. Apart from the above-mentioned functions of the bank, the bank provides a whole lot of other services like investment counseling for individuals, short-term funds management and portfolio management for individuals and companies. It undertakes the inward and outward remittances with reference to foreign exchange and collection of varied types for the Government

HOME LOANS 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. 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 loans”. 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.

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The roof over one’s head and ground beneath one’sfeet count as the bare necessities of life. There’s nothing quite like owing a home, however humble to give that warm and glowing feeling. But when one buys a home, one has much more than a feel good purchase in mind! It’s also a crucial investment decision, perhaps the biggest spending decision of one’s life. There are ample opportunities today for young salaried investors to plan their moves early and buy a house at right time- and at right price. In the process, not only do they fulfill that cherished dream of owing a house, but also put themselves on the path to acquiring property that would meet the needs and aspirations of their growing family, even as it leads to wealth creation. Every individual aspires to own a home. But many either spend a lifetime saving to purchase a house or exhaust money on monthly house rents. Take a house loan and let the monthly rent (easily converted into affordable EMI’s) build dream

home.

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

5.

SBI and many more 12

2. PRODUCT PROFILE

The different services provided by Banks:

Home loan

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

13



Flexible property norms



Approved plans are not mandatory



Funding for Builder Flats



Hassle-free and fast service

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 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.

14

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.

15

CHAPTER 2 COMPANY PROFILE

16

1.1 INTRODUCTION OF BANK OF BARODA Bank of Baroda is one of the most prominent banks in India, having its total assets as Rs. 1, 43,146 Crores as on 31st of March 2007. The bank was founded by Maharaja Sayajirao Gaekwad III (also known as Shrimant Gopalrao Gaekwad), the then Maharaja of Baroda on 20th of July 1908 with a paid capital of Rs. 10 Lacs. From its introduction in a small building of Baroda, the bank has come a long way to achieve its current position as one of the most important banks in India. On 19th of July 1969, Bank of Baroda was nationalized by the Government of India along with 13 other commercial banks. The bank offers a wide array of customized and specialized services to meet the diverse needs of its customers, and these services have been categorized into Personal Banking, Business Banking, Corporate Banking, International Banking, Treasury Banking and Rural Banking services

1.2 DEFINITION & MEANING OF BANK BANK DEFINITION: A financial institution that is licensed to deal with money and its substitutes by accepting time and demand deposits, making loans, investing in securities. The bank generates profits from the difference in the interest rates charged and paid.

17

MEANING OF BANK: A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example, banks are important Players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as thezaibatsu. In France, banc assurance is prevalent, as most banks offer insurance services (and now real estate services) to their clients.

1.3

HISTORY OF BANK OF BARODA

1990s 

1990: BoB opened an OBU in Mauritius, but closed its representative office in Sydney.



1991: BoB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&S’s branch had been established before 1970 and Union Bank’s after 1980. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses.



1992 BoB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange.



1993: BoB closed its OBU in Bahrain.



1996: BoB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank's equity.



1997: BoB opened a branch in Durban.



1998: BoB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a response to regulatory changes following Hong Kong’s reversion to the People’s Republic of China. BoB also acquired Punjab Cooperative Bank in a rescue.



1999: BoB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. 18

In Guyana, BoB incorporated its branch as a subsidiary, Bank of Baroda Guyana. BoB added a branch in Mauritius, but closed its Harrow Branch in London.

2000s 

2000: BoB established Bank of Baroda (Botswana).



2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of India’s request. BSB was established in 1946 but traced its origins back to 1871 and its function as the treasury office of the Benares state. In 1964, BSB had acquired Bareilly Bank (est. 1934), with seven branches; it also had taken over Lucknow Bank in 1968. The acquisition of BSB brought BOB 105 new branches.



2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).



2003: BoB opened an OBU in Mumbai.



2004: BoB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, China.



2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralized banking solution (CBS) and other applications in more than 1,900 branches across India and 20 other counties where the bank operates. BoB also opened a representative office in Thailand.



2006: BoB established an Offshrore Banking Unit (OBU) in Singapore.



2007: In its centenary year, BoB’s total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people.



2008: BoB opened a branch in Guangzhou, China (02/08/2008).



2008: BoB opened a joint venture life insurance company with Andhra Bank and Legal and General (UK) called IndiaFirst Life Insurance Company



2009: The Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand (2009/09/01)

2010 19



2010: Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers, air conditioners etc. required, to:



o

Our existing housing loan borrowers

o

New borrowers

Free Credit Card: Free Credit Card (complementary for first year) will be issued to borrowers with loan limit above Rs.2/-lakhs.

 Loan Against Future Rent Receivable’s Loan Against Future Rent Receivables has been developed considering the growth potential in the real estate in various metros and urban centers, where many commercial properties/shopping malls are being developed and the owners approach banks for loans against securitization of future rent receivables from such properties.

Key Benefits 

The scope for the New Product has been kept wide to cover the target groups, viz. owners of immoveable properties (lessor) belonging to all types of the constitution.



The minimum and maximum loan limits are fixed at Rs.1 lac and Rs.1000 lacs respectively.

 Baroda Career Development Gainfully employed persons intend to pursue higher education, vocational courses, trainings, pilot trainings, skill up gradation, diploma or degree courses offered in aviation, hospitality and travel management, executive development etc. in India / abroad. To help the future management leaders acquire higher specialized managerial skills and dominate the global arena, Bank of. 

20

1.4 DEPOSITS OFFERED BY BANK OF BARODA: 1. FIXED DEPOSITS

TYPES OF FIXED DEPOSITS: 

Short Deposits 

A Scheme for High Return on your savings even for a short period of less than 1 year. An ideal option for all transitory savings to meet the requirements. An ideal option for all transitory savings.



Overdraft / loan against deposit provided on demand upto 95% of deposit amount without any guarantor and processing fee, filling of any forms etc. even for 1 day and upto the maturity period of deposits to meet short term requirements and needs.



For such advances interest shall be charged 1.5% over the deposit rate with monthly rests in case of depositor -borrower and in case your friends want to avail loan against your deposit the rate of interest will be a little higher depending on



Accepted as a Security by Govt. Deptt.



Accepted as margin for Non-fund based facilities.



Nomination facility is available.



loan amount.

Baroda Fast Access Deposit Scheme

Bank of Baroda's Fast Access Deposit is a prudent way to security, liquidity and relief. The plan provides you with the facility of overdrawing your account up to 95% of your deposits. Join

this

deposit

product

with

a

minimum

Add to this, in multiples of Rs. 1,000/- (under RIRD plan)

Key Benefits 21

deposit

of

Rs.

10,000/-



Loan/Overdraft facility up to 95% of the deposit amount right from day one.



No additional documentation for availing overdraft.



An additional 0.50% interest for senior citizens.



Provision for nomination.

Terms & Conditions 

Minimum amount required to open an account - Rs. 10,000/-.



Subsequent deposits in multiples of Rs. 1000 (under RIRD plan).



Deposit Tenure: o

Minimum - 12 months.

o

Maximum - 120 months.



Interest will be compounded quarterly depending upon the maturity period of the deposit.



No penalty for premature payment will be levied in case of premature payment of deposits up to Rs. 5 Lakhs provided it remained with the Bank for a minimum period of 12 months.



On pre-matured withdrawal of your deposits amount, interest will be calculated at 1% below the rate applicable for the period of deposits.



Interest payments are subject to TDS (Tax Deducted at Source).



Opening of a current account is mandatory.



BOB Suvidha Fixed Deposit Scheme

A product is offering a combination of competitive interests as well as easy liquidity. A convenient way of utilizing your deposits giving you the best of both, long-term as well as shortterm deposit plans. 22

Key Benefits: 

A highly flexible product, which works to your needs, always.



Offers dual advantage of attractive rate of interest as well as flexible withdrawal limit.



Provision for nomination.



Regular Income Plan

Your deposits bring regular income i.e. monthly/quarterly/half yearly/yearly and supplement your earnings.

Key Benefits: 

This plan does not demand any extra formalities, as concerns overdrafts and withdrawals, hence enabling you to withdraw as much as 95% of the deposit amount.



Provides you the comfort of liquidity along with a security of your money being in safe hands.



An additional 0.50% interest for senior citizens (applicable only for deposits of Rs. 10000/- and above).



Provision for nomination.

Terms & Conditions: 

Deposit account can be opened with minimum amount of Rs. 1,000/- and subsequent deposits in multiples of Rs.100/-.



Minimum period of deposit is 12 months, extending to a maximum of 120 months.



Interest on your deposit credited on quarterly basis.

23



No penalty for premature payment will be levied in case of premature payment of deposits up to Rs. 5 Lakhs provided it remained with the Bank for a minimum period of 12 months.



On pre-matured withdrawal of your deposits amount, interest will be calculated at 1% below the rate applicable for the period of deposits.





Interest payments are subject to TDS (Tax Deducted at Source).

Monthly Income Plan

The Monthly Income Plan is tailored for those individuals who regularly need money to supplement their income i.e. each month. Interest earned on your deposit becomes another source of income.

Key Benefits: 

This plan does not demand any extra formalities, as concerns overdrafts and withdrawals, hence enabling you to withdraw as much as 95% of the deposit amount.



Provides you the comfort of liquidity along with a security of your money being in safe hands.



An additional 0.50% interest for senior citizens (applicable only for deposits of Rs. 10000/- and above).



Provision for nomination.

Terms & Conditions: 

Deposit account can be opened with minimum amount of Rs. 1,000/- and subsequent deposits in multiples of Rs.100/-.



Deposit Tenure:

24

o

Minimum - 12 months.

o

Maximum - 120 months.



Interest will be paid on monthly basis at discounted rate.



No penalty for premature payment will be levied in case of premature payment of deposits up to Rs. 5 Lakhs provided it remained with the Bank for a minimum period of 12 months.



On pre-matured withdrawal of your deposits, interest will be calculated at 1% below the rate applicable for the period of deposits.





Interest payments are subject to TDS (Tax Deducted at Source).

Regular Income cum Recurring Deposit

Enjoy an increasing rate of interest with longer periods of deposit. Compound interest ensures that your savings grow faster. The plan provides you with the facility of overdrawing your account by way of a pre-issued cheque of up to 95% of your deposits.

Key Benefits: 

This plan does not demand any extra formalities, as concerns overdrafts and withdrawals, hence enabling you to withdraw as much as 95% of the deposit amount.



Provides you the comfort of liquidity along with a security of your money being in safe hands.



An additional 0.50% interest for senior citizens (applicable only for deposits of Rs. 10000/- and above).



Provision for nomination.

Terms & Conditions

25



Deposit account can be opened with minimum amount of Rs. 1,000/- and subsequent deposits in multiples of Rs.100/-.



Deposit Tenure: o

Minimum - 12 months.

o

Maximum - 120 months.



Interest will be compounded quarterly & credited to your account half yearly.



No penalty for premature payment will be levied in case of premature payment of deposits up to Rs. 5 Lakhs provided it remained with the Bank for a minimum period of 12 months.



On pre-matured withdrawal of your deposits, interest will be calculated at 1% below the rate applicable for the period of deposits.





Interest payments are subject to TDS (Tax Deducted at Source).

Capital Gain Account Scheme, 1988

The Capital Gain Account Scheme primarily helps you avail of tax exemptions from capital gains. It offers two types of accounts- Savings and Term Deposits.

Key Benefits: 

Tax exemption under section 54(F)(4) of Income Tax Act 1961.



Provision for nomination

Terms & Conditions: 

Interest rates as per Savings Deposits/Term Deposits.



Interest payments are subject to TDS (Tax Deducted at Source).

26



Term Deposits

Enjoy an increasing rate of interest with longer periods of deposit. Your money remains safe and secure with an option of easy liquidity.

Key Benefits 

Loan/Overdraft facility up to 95% of the deposit amount additional to the accrued interest thereon (nature of requirement will not be a factor for withdrawal).



For such loans interest shall be charged 1.50% to 1.75% (Depending on amount of loan) over the deposit rate with monthly rest in case of depositor -borrower and in case of others the rate of interest will be a little higher depending upon loan amount. Interest rate on Loan against deposits of Senior Citizens shall be charged at 1.25% over deposit rate.



No processing fees will be charged for Loans and Advances against bank deposits.



The Govt. of India accepts the money deposited in this plan as a security.



Deposits can be accepted as the margin money for non-fund based facilities.



No penalty for premature payment will be levied in case of premature payment of deposits up to Rs. 5 Lakhs provided it remained with the Bank for a minimum period of 12 months.



On pre-matured withdrawal of your deposits, interest will be calculated at 1% below the rate applicable for the period of deposits.



Facility for auto renewal of your deposit, in case such instructions haven't been received for the same. This ensures that you don't lose out on interest.





Provision for nomination

Baroda Tax Savings Term Deposit Account. 27

Eligible Persons: 

All individuals and HUF are eligible to invest in the product. It is most suitable for income tax payers like salaried persons, higher and middle-income group, retired persons etc.



Deposit can be made in single name of an individual for himself or in the name of the Karta of the HUF OR in joint name.



Joint account may be in the name of maximum two adults or jointly to an adult and a minor. As per Government’s present Guidelines, in case of joint account/ joint holding of deposit, income tax relief will be available only to the first holder of the deposit.



The firms, companies, trust, societies, clubs, institutions, corporate etc. are not allowed to invest under the product.

Period of the deposit: Minimum 5 years with a maximum tenure up to 10 years.

Minimum & Maximum Amount: 

Minimum amount shall be Rs. 100/- & in multiples of Rs. 100/- .



For availing Tax benefit maximum amount in a financial year - Rs. 1/- lakh.

2. CURRENT ACCOUNT Current Deposits product is ideal for firm, companies, institutions, HUF, individuals etc., who need banking facility more frequently. This is one of the most basic and flexible deposit options, allowing transaction without limiting the numbers.

You may choose from: 

Baroda Advantage Current Account 28



Baroda Premium Current Account (BPCA)



Baroda Premium Current Account-Privilege (BPCAP)

3. TYPES OF SAVING ACCOUNT



Baroda Savings Account

Depending on the nature of the account and the governing terms and conditions, Bank of Baroda offers you under Savings Accounts. Click each product for more information. 

Baroda Centenary Savings Account



Savings Bank Account



Super Savings Account



Nagrik Bachat Khata



Baroda Salary Advantage Saving Account



Baroda Bachat Mitra



Baroda Centenary Savings Account:

Baroda Centenary Savings Account a Superior Savings Bank a/c with added value propositions. This product is available at all CBS branches in India.

Key Benefits: 

Auto sweep: Auto transfer of funds exceeding certain fixed amount to Term Deposit to provide high yield on such funds.



Auto reverse sweep in case of need to honour Cheque to Savings account from Term Deposit.

29



Free collection of outstation cheques drawn in favour of account holder (postage out of pocket expenses are recoverable).



IMMEDIATE CREDIT of outstation cheques upto Rs.25, 000/-, as per norms.



FREE DEBIT CARD.



Savings Bank Account

Key Benefits 

Simplest deposit option available to the depositor.



Easy to operate. Terms and conditions kept lucid to facilitate a layman's understanding. No hidden costs.



Zero balance facility – Your Savings Bank Account with us remain alive even when the balance reaches zero. This facility is only for salaried employees in Central/ State Govt. Public & Private Limited Companies, Agents of Life & General Insurance Corporations and Students. Even for those receiving compensation from govt. for acquisition of their properties.



Your deposits are insured by DICGC



Option for money withdrawal by withdrawal forms or by cheque.



An ideal option to cultivate the habit of banking and saving amongst the younger generation.





Provision for nomination.

Super Savings Account

The product is in the nature of superior Savings Bank Account with added value propositions to high

value

resident

customers. 30

The

product

is

available

at our computerized branches at Metro and Urban centers only.

Key Benefits 

No charges for issuance of Demand Drafts (drawn on Indian branches) / Banker's Cheques to meet personal needs of the customers.



Free transfer of funds to any branch of our bank by Mail Transfers / Telegraphic Transfers (usual telegram charges to be recovered).



Free collection of outstation cheques drawn in favour of a/c holder.



Auto / Reverse Sweep: Auto transfer of funds exceeding certain fixed amount to short deposit and auto retransfer to the account from short deposit, in case funds are required in the account to bring you higher interest with high liquidity.



Nagrik Bachat Khata

The Indian economy has undergone a significant transformation since the economic reforms in 1991 with the banking sector in the forefront. Nagrik Bachat Khata is a product through which Bank of Baroda intends to extend its services to a vast section of population by making banking easy and convenient.

Key Benefits: 

Services designed to cater to a vast majority of Indian population



Banking simplified



Open account with an initial amount of just Rs. 50/-



Zero service charges for non-maintenance of a minimum balance of Rs. 50/-

Terms & Conditions:

31



Who can open the account: All resident individuals who are eligible to open Savings Bank Account avail of this offering in single or joint names. This product is not for Non Resident Indians, Trusts, Societies, etc.



Minimum amount: Rs. 50/- at all centers (Metro/Urban/Semi Urban/Rural). No service charges for nonmaintenance of minimum balance



Maximum amount: There is no ceiling on the amount deposited/held in the account. However, in case of minors (between 10 and 14 years), maximum amount cannot exceed Rs. 1 lakh



Account can be operated by the customers using withdrawal slip along with pass book only. A cheque book of -10- leaves will be issued on request for one year free of cost.





Number of withdrawals not to exceed thrice in a month.

Baroda Salary Advantage Saving Account

Bank of Baroda now has a special salary account with added benefits. It's a saving bank account with an in built feature of overdraft facility to the salaried persons.

Key Benefits 

Overdraft facility available upto Rs 1 lakh.



Earn interest on credit balance account as per saving bank a/c rules.



Free Chequebooks for routine requirement.



No minimum balance requirement in the account.



No ceiling on the amount to be deposited and credit balance in the a/c. 32

Terms & Conditions 

This account can be availed by regular employees of state/central government, PSUs, semi govt. organizations, state/central govt. corporations, urban development authorities, educational institutions, universities, MNCs, reputed public ltd companies & selected private ltd companies with minimum one year service with the organization.



Age: Minimum - 21 years.



Minimum take home salary - Rs5000/-



The maximum overdraft limit - Rs. 1 lakh subjected to 90% of net salary (average of last three months).





Third party guarantee.

Baroda Bachat Mitra

Key Benefits 

Product Nature: Overdraft facility in Savings Account secured by Pledge of Term Deposit



Eligibility Criteria: Individuals eligible to open Savings Account singly / jointly and having attained the age of 18 years



Minimum Amount: Savings Account: There shall be no minimum balance requirement for Savings Account; as such no service charges shall be levied towards maintenance of minimum

balance.

Fixed Deposit: Minimum amount of deposit accepted for the facility would be Rs10000/and thereafter in multiples of Rs1000/- with a minimum period of 12 months and maximum period of 120 months. 

Maximum Amount: There shall be no ceiling on the maximum amount to be deposited as fixed deposit and credit balance in Savings Account. 33



Overdraft Limit: To the extent of 80% of Fixed Deposit with a minimum limit of Rs8000/Third

and party

FDRs

maximum are

not

of eligible

Rs100000/under

this

. scheme.

FDRs issued by any other branch /bank cannot be pledged and accepted as security, as per extant guidelines of the bank. 

Interest Rate:

Fixed deposit: As per contractual rate, at the time of accepting deposit.

. Savings A/c: As per existing rules for credit balance in SB A/c’s and for debit balance in Savings A/c 1.5% over Fixed Deposit rate with monthly rests and a minimum of Rs25/will be charged during a month if overdraft facility is availed. 

Processing & Documentation Charge : ---Nil---



Security for Overdraft facility: Pledge of FDR duly discharged by the depositor. Letter of pledge of FDR ( LDOC -16 A)



Other conditions : o

On due date of FDR the facility may be renewed at the request of the customer. In absence of any request, overdraft facility may be liquidated by appropriation of proceeds of the FDR after giving due notice to the borrower or alternatively FDR may be renewed under auto renewal facility and overdraft facility may also be renewed at revised interest rate linked with FDR, depending upon circumstances.

o

If the borrower fails to pay the interest in overdraft account and /or the accounts remains overdrawn for a quarter, bank shall have right to cancel the facility, liquidate it by prepaying the deposit and appropriating proceeds thereof after giving due notice to the customer..

o

FDRs under BOB Suvidha will not be accepted under the scheme.

o

All the extant guidelines including KYC Norms will be applicable while opening Savings and FDR accounts.

o

Depositor may be given an acknowledgement having pledged the duly discharged FDR with the bank.

34

o

Existing procedure shall be followed by the branched for premature payment of FDRs.

o

Nomination Facility shall be available the depositors for their Savings and Fixed Deposits Accounts.

Baroda Home Loan



Bank of Baroda invites you to be a proud owner of your own home and offers easy Home Loan with a number of conveniences to suit your budget. Home Loan is available for: 

Purchase of new / old dwelling unit.



Construction of house.



Purchase of plot of land for construction of a house.



Repaying a loan already taken from other Housing Finance Company / Bank.



Repayment period up to 25 years (floating rate option).

 Baroda Home Improvement Loan

Bank of Baroda brings to you a unique loan product. A loan for Repairs / Renovations / Improvement / Extension of Home and for Furniture, Fittings & Fixtures.

Key Benefits 

Loan available for repairs / renovation / improvement / extension of the existing house. 35



Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers, air conditioners etc. required, to:



o

Our existing housing loan borrowers

o

New borrowers

Free Credit Card: Free Credit Card (complementary for first year) will be issued to borrowers with loan limit above Rs.2/-lakhs.

 Loan Against Future Rent Receivable’s Loan Against Future Rent Receivables has been developed considering the growth potential in the real estate in various metros and urban centers, where many commercial properties/shopping malls are being developed and the owners approach banks for loans against securitization of future rent receivables from such properties.

Key Benefits 

The scope for the New Product has been kept wide to cover the target groups, viz. owners of immoveable properties (lessor) belonging to all types of the constitution.



The minimum and maximum loan limits are fixed at Rs.1 lac and Rs.1000 lacs respectively.

 Baroda Career Development Gainfully employed persons intend to pursue higher education, vocational courses, trainings, pilot trainings, skill up gradation, diploma or degree courses offered in aviation, hospitality and travel management, executive development etc. in India / abroad. To help the future management leaders acquire higher specialized managerial skills and dominate the global arena, Bank of.

36

CHAPTER 3

REVIEW OF LITERATURE

37

Before giving details regarding the research methodology used in the study, it is appropriate to present a brief overview of the research articles, case studies, and books written on this particular topic. The area of study may be within the country or outside the country. Review of literature helps a researcher to get acquainted with his/her selected research problem and also may provide some guidelines in selecting a proper research methodology. It is also helpful in finding out the research gaps in the existing literature. This will help the researcher in finetuning his/her research problem and methodology. Another advantage of reviewing in the existing literature is that in cases where the research problems are similar, the conclusions and findings may be easily compared. This will help the researcher in determining whether his/her findings are possible or not. 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, November ’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”

38

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.

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 consulting few experts too in this field and finally the original questionnaire was drafted. 39

Several studies have been done by various researchers in the context of home loans. The details of reviews are below. Berstain David (2009) examined in his study taken from 2001 to 2008 that in this period there is increasing use of home loans as compared to private mortgage insurance (PMI). Vandell, Kerry D (2008) analyses the sharp rise and then suddenly drop down home prices from the period 1998- 2008. Changes in prices are for the reasons as such economic fundamentals , the problem was not subprime lending per se, but the dramatic reductions and subsequent increases in interest rates during the early- mid-2000 , the housing loan boom was concentrated in those markets with significant supplyside restrictions, which tend to be more price-volatile. The problem was not in the excess supply of credit in aggregate, or the increase in subprime per se, but rather in the increased or reduced presence of certain other mortgage products. La courr, Micheal (2007) analyses in his study, the factors that affect the increase in the level of Annual percentage rates spread reporting during 2005 over 2004.The three main factors are: (1) changes in lender business practices; (2) changes in the risk profile of borrowers; and (3) changes in the yield curve environment. The result shows that after controlling the mix of loan types, credit risk factors, and the yield curve, there was no statistically significant increase in the reportable volume for loans originated directly by lenders during 2005. La courMicheal (2006) examined the home purchase mortgage product preferences of LMI households. Objectives of his study were to analysis the factors that determined their choice of mortgage product. The role pricing and product substitution play in this segment of the market and to verify whether results vary when loans are originated through mortgage brokers. In this case regression analysis has been used and results have shown that high interest risk reduces loan value. Dr. Rangarajan C. (2001) said that the financial system of India built a vast network of financial institutions and markets over times and the sector is dominated by banking sector which accounts for about two-third of the assets of organized financial sector. Haavio, Kauppi (2000) stated that countries where a large proportion of the population live in owner– occupied housing experience higher unemployment rates than countries where the majority of people live in private rental housing.This might suggest that rental housing enhances labour mobility. In this paper, they develop a simple inter temporal two region model that 40

compares owner occupied housing markets to rental markets and to analyze how these alternative arrangements allocate people in space and time. BOB has taken the rate war in the home loans category to 35 HOUSING LOANS CUSTOMER PERSPECTIVE (A STUDY CONDUCTED WITH REFERENCE TO CHENNAI) new heights announced that it will offer loans for Rs. 2- 10 lakhs at 12.5 percent the lowest rate offered by any housing finance provider, Narasimham Committee (1991) points out that although the banking system has made rapid progress during the last two decades, there is decline in productivity and efficiency and erosion of profitability. The committee strongly makes indications of liberalizing, deregulating economy to make the Indian banking system more competitive and efficient. Ojha (1987) in his paper "Modern International Caparison of Productivity and Profitability of Public Sector Banks of India" has made a comparison on the basis of per employee indicators and taking cases of State Bank group and Punjab National Bank noted that Indian banks are the lowest in all accounts. Godse (1983) observes that productivity aspect is only at the Conceptualization stage in the banking industry. He suggested improvement in productivity and procedures, costing of operations and capital expenditure etc. Fanning (1982), while examining bank productivity of British banks observed that although the productivity of the UK clearing banks is improving, they are still heavily over manned as compared with similar banks elsewhere. Kulkarni (1979) in his study “Development responsibility and profitability of banks” stated that while considering bank costs and profits, social benefits arising out of it cannot be ignored. He suggested that while meeting social responsibility banks should try to make developmental business as successful as possible. Varde and Singh (1979) in a study "Profitability of Commercial Banks" over 15 years gave consideration to two types of factors that affects interest rates levels i.e. internal factors (including operational and managerial efficiency of individual basis). Banking Commission (1972) reviewed bank operating methods and procedures and made recommendations for improving and modernizing these, particularly relating to customer services, credit procedure and internal control systems. It observed that present methods of working out branch profitability are not appropriate and an integrated costing and financial reporting system is essential. 41

CHAPTER 4

RESEARCH METHODOLOGY

42

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE: Analyzing the customer satisfaction on home loans offered by banks.

SECONDARY OBJECTIVE 1. To find out various types of loans 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. To evaluate the customer satisfaction regarding various services offered at banks

SCOPE OF THE STUDY The scope of the study is to analyze the appraisal 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

43

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.

44

DESCRIPTIVE RESEARCH In my study, I am 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 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

45

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 . Multiple-choice questions . Ranking questions . Rating questions

SECONDARY DATA It is needed for conducting this research work collected from the various business magazines, bank broachers, statistical and management book, market research books etc. which are presented in the literature various in details

46

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 Scaling Likert 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. 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 disagree ability 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. 47

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.

48

CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

49

Analysis and Result 1. The decision based on, in processing an application of Home Loan,received the following responses. Frequency:

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 10 12.5

Valid Cumulative Percent Percent 12.5 12.5

24

30.0

30.0

42.5

30

37.5

37.5

80.0

11

13.8

13.8

93.8

5

6.3

6.3

100.0

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 50

Home Loan easy to understand. 2. The decision based on, mortgage process, received the following responses. Frequency:

Valid

.00 1.00 2.00 3.00 4.00 5.00 Total

Frequency 1

Percen t 1.3

Valid Percent 1.3

Cumulative Percent 1.3

20

25.0

25.0

26.3

29

36.3

36.3

62.5

19

23.8

23.8

86.3

8

10.0

10.0

96.3

3

3.8

3.8

100.0

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 51

explain thoroughly. 3. The decision based on, EMI fixed by bank, received the following responses. Frequency:

EMI FIX

Valid 1.00 2.00 3.00 4.00 5.00 Total

Valid Cumulative Percent Percent 50.0 50.0

Frequency 40

Percent 50.0

25

31.3

31.3

81.3

4

5.0

5.0

86.3

6

7.5

7.5

93.8

5

6.3

6.3

100.0

80

100.0

100.0

From the 80 respondents nearly 50% responses generated shown strong agreeability, 31.3% responses are generated agree, 5.0% responses generated natural, 7.5% responses generated disagree and remaining 6.3% indicate that the customers strongly disagree that EMI fixed by 52

bank is correct. 4. The decision based on, accessibility service received, following responses. Frequency:

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 21 26.3

Valid Cumulative Percent Percent 26.3 26.3

20

25.0

25.0

51.3

23

28.8

28.8

80.0

9

11.3

11.3

91.3

7

8.8

8.8

100.0

80

100.0

100.0

From the 80 respondents nearly 26.3% responses generated shown strong agreeability, 25.0% responses are generated agree, 28.3% responses generated natural, 11.3% responses generated disagree and remaining 8.8% indicate that the customers strongly disagree that they service received. 53

5. The decision based on, Interest rates charged by Bank, received the following responses Frequency: INTRST CHRG BY BNK

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 23 28.8

Valid Cumulative Percent Percent 28.8 28.8

25

31.3

31.3

60.0

13

16.3

16.3

76.3

16

20.0

20.0

96.3

3

3.8

3.8

100.0

80

100.0

100.0

From the 80 respondents nearly 28.8% responses generated shown strong agreeability, 31.3% responses are generated agree, 16.3% responses generated natural, 20.0% responses generated disagree and remaining 3.8% indicate that the customers strongly disagree that interest charged by bank is correct. 54

6. The decision based on, favor in Home Loan, received the following responses. Frequency:

HL FVOR

Valid 1.00

Frequency Percent 27 33.8

2.00 3.00 4.00 5.00 Total

Valid Cumulative Percent Percent 33.8 33.8

33

41.3

41.3

75.0

10

12.5

12.5

87.5

7

8.8

8.8

96.3

3

3.8

3.8

100.0

80

100.0

100.0

From the 80 respondents nearly 33.8% responses generated shown strong agreeability, 41.3% responses are generated agree, 12.5% responses generated natural, 8.8% responses generated disagree and remaining 3.8% indicate that the customers strongly disagree that how much people are in favor of home loan. 55

7. The decision based on, Documentation Procedure of Bank, received the following responses. Frequency: DOC PRCZER

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 14 17.5

Valid Cumulative Percent Percent 17.5 17.5

30

37.5

37.5

55.0

22

27.5

27.5

82.5

8

10.0

10.0

92.5

6

7.5

7.5

100.0

80

100.0

100.0

From the 80 respondents nearly 17.5% responses generated shown strong agreeability, 37.3% responses are generated agree, 27.5% responses generated natural, 10.0% responses generated disagree and remaining

7.5% indicate that the customers strongly disagree that document

procedure is correct. 56

8. The decision based on, Processing Fees of Bank, received the following responses. Frequency: PRCZING FEES

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 6 7.5

Valid Cumulative Percent Percent 7.5 7.5

16

20.0

20.0

27.5

26

32.5

32.5

60.0

25

31.3

31.3

91.3

7

8.8

8.8

100.0

80

100.0

100.0

From the 80 respondents nearly 7.5% responses generated shown strong agreeability, 20.0% responses are generated agree, 32.5% responses generated natural, 31.3% responses generated disagree and remaining 8.8% indicate that the customers strongly disagree that processing fees is true. 57

9. The decision based on, Sanctioning Procedure, received the following responses. Frequency:

SENCTION PRCZER

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 6 7.5

Valid Cumulative Percent Percent 7.5 7.5

10

12.5

12.5

20.0

23

28.8

28.8

48.8

32

40.0

40.0

88.8

9

11.3

11.3

100.0

80

100.0

100.0

From the 80 respondents nearly 7.5% responses generated shown strong agreeability, 12.5% responses are generated agree, 28.8% responses generated natural, 40.0% responses generated disagree and remaining 11.3% indicate that the customers strongly disagree that document procedure is correct.

58

10. The decision based on, Sanctioning Time, received the following responses. Frequency:

Valid 1.00 2.00 3.00 4.00 5.00 Total

SENCTION TIME Valid Cumulative Frequency Percent Percent Percent 3 3.8 3.8 3.8 12

15.0

15.0

18.8

18

22.5

22.5

41.3

23

28.8

28.8

70.0

24

30.0

30.0

100.0

80

100.0

100.0

From the 80 respondents nearly 3.8% responses generated shown strong agreeability, 15.0% responses are generated agree, 22.5% responses generated natural, 28.8% responses generated disagree and remaining 30.0% indicate that the customers strongly disagree about sanctioning time. 59

11. The decision based on, Fore Closure Charges, received the following responses. Frequency: 4 CLZR CHRGD

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 7 8.8

Valid Cumulative Percent Percent 8.8 8.8

6

7.5

7.5

16.3

25

31.3

31.3

47.5

15

18.8

18.8

66.3

27

33.8

33.8

100.0

80

100.0

100.0

From the 80 respondents nearly 8.8% responses generated shown strong agreeability, 7.5% responses are generated agree, 31.3% responses generated natural, 18.8% responses generated disagree and remaining 33.8% indicate that the customers strongly disagree about Fore Closure Charges. 60

12. The decision based on, sanctioning is going online, received the following responses. Frequency:

Valid .00 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 1 1.3

Valid Cumulative Percent Percent 1.3 1.3

34

42.5

42.5

43.8

9

11.3

11.3

55.0

18

22.5

22.5

77.5

5

6.3

6.3

83.8

13

16.3

16.3

100.0

80

100.0

100.0

From the 80 respondents nearly 42.5% responses generated shown strong agreeability, 11.3% responses are generated agree, 22.5% responses generated natural, 6.3% responses generated disagree and remaining 16.3% indicate that the customers strongly disagree that home loan is going online. 61

13. The decision based on, interest charged by bank should be different on the basis of income level, received the following responses. Frequency:

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 15 18.8

Valid Cumulative Percent Percent 18.8 18.8

8

10.0

10.0

28.8

21

26.3

26.3

55.0

13

16.3

16.3

71.3

23

28.8

28.8

100.0

80

100.0

100.0

From the 80 respondents nearly 18.8% responses generated shown strong agreeability, 10.0% responses are generated agree, 26.3% responses generated natural, 16.3% responses generated disagree and remaining 28.8% indicate that the customers strongly disagree that should interest charged by bank should be different on the basis of income level.

62

14. The decision based on, Seize of asset facility by bank is the right step, in case of nonpayment of EMI, received the following responses. Frequency:

Valid .00 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 1 1.3

Valid Cumulative Percent Percent 1.3 1.3

17

21.3

21.3

22.5

21

26.3

26.3

48.8

14

17.5

17.5

66.3

11

13.8

13.8

80.0

16

20.0

20.0

100.0

80

100.0

100.0

From the 80 respondents nearly 21.3% responses generated shown strong agreeability, 26.3% responses are generated agree, 17.5% responses generated natural, 13.8% responses generated disagree and remaining 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. 63

15. The decision based on, facility provides by the bank, received the following responses. Frequency: FCLTY PRVD BANK

Valid .00 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 4 5.0

Valid Cumulative Percent Percent 5.0 5.0

8

10.0

10.0

15.0

12

15.0

15.0

30.0

18

22.5

22.5

52.5

31

38.8

38.8

91.3

7

8.8

8.8

100.0

80

100.0

100.0

From the 80 respondents nearly 10.0% responses generated shown strong agreeability, 15.0% responses are generated agree, 22.5% responses generated natural, 38.8% responses generated disagree and remaining 8.8% indicate that the customers strongly disagree that they satisfy with facility provide by the bank. 64

16. The decision based on, prefer public sectors bank for home Loan, received the following responses. Frequency: PUBLIC SECTOR

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 35 43.8

Valid Cumulative Percent Percent 43.8 43.8

19

23.8

23.8

67.5

5

6.3

6.3

73.8

14

17.5

17.5

91.3

7

8.8

8.8

100.0

80

100.0

100.0

From the 80 respondents nearly 43.8% responses generated shown strong agreeability, 23.8% responses are generated agree, 6.3% responses generated natural, 17.5% responses generated disagree and remaining 8.8% indicate that the customers strongly disagree that how much people like to prefer public sectors bank for home Loan. 65

17. The decision based on, prefer private sectors bank for home Loan, received the following responses. Frequency: PRIVATE SECTOR

Valid 1.00 2.00 3.00 4.00 5.00 Total

Frequency Percent 26 32.5

Valid Cumulative Percent Percent 32.5 32.5

20

25.0

25.0

57.5

7

8.8

8.8

66.3

12

15.0

15.0

81.3

15

18.8

18.8

100.0

80

100.0

100.0

From the 80 respondents nearly 32.5% responses generated shown strong agreeability, 25.0% responses are generated agree, 8.8% responses generated natural, 15.0% responses generated disagree and remaining 18.8% indicate that the customers strongly disagree how much people like to prefer public sectors bank for home Loan. 66

CHAPTER-6 CONCLUSION AND SUGGESTIONS

67

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 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.  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.

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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  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.

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BIBLIOGRAPHY

BOOK REFERENCES: I. II.

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

ICFAI, Journal of Service Marketing, December 2004 ICFAI, Journal of Monetary Economics, November 2004 Indian Journal of Marketing May 2004

E-REFERENCES: I. II.

www.icici/india.com www.sbi.co.in

III.

www.hdfc/india.com

IV.

www.google.co.in

V.

www.citifinancial.co.in

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ANEXURE

71

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. HOME LOAN APPRASIAL OF BANK OF BARODA 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,

Sr. No.

3-Neutral,

4- Disagree,

Particulars

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?

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?

72

5-Strongly Disagree 1 2 3 4 5

11

How do you rate the Fore Closure Charges of Bank?

12

How do you rate when loan sanctioning is going online?

13

15

Do you think the interest charged by bank should be different on the basis of income level? Seize of asset facility by bank is the right step, in case of nonpayment of EMI? 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?

14

Anything else you would like to share:-

73