CUSTOMER SATISFACTION TOWARDS LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE

Project Report Submitted to Bharathiar University Partial fulfillment of the Requirements for the Award of the Degree of

MASTER OF COMMERCE Submitted by

GOWTHAM.P (Reg No.103AA0129)

Under the Guidance of

Mr.,L. RAJKUMAR M.com., M.PHIL.,

Lecturer, Department of Commerce & IB

DEPARTMENT OF COMMERCE & IB VLB JANAKIAMMAL COLLEGE OF ARTS & SCIENCE (AUTONOMOUS) ACCREDITED TO NAAC ISO 9001:2008 CERTIFIED KOVAIPUDUR, COIMBATORE-641042.

MARCH 2012

VLB JANAKIAMMAL COLLEGE OF ARTS & SCIENCE (AUTONOMOUS) ACCREDITED TO NAAC ISO 9001:2008 CERTIFIED KOVAIPUDUR, COIMBATORE-641042.

CERTIFICATE
This is to certify that the project entitled CUSTOMER SATISFACTION
TOWARD

LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE is a

record

of

original

research

work

done

by

GOWTHAM.P (Reg

No.103AA0129) a student of M.com, V.L.B.Janakiammal College of arts and

science, Coimbatore-641 042. During 2011-2012 in the partial fulfillment of the requirements for the award of the degree of MASTER OF COMMERCE submitted for Bharathiar University, Coimbatore-641 046.

_______________________ GUIDE

_________________________ Head of the Department

Viva-voce examination held on

_________________________

________________________ Internal Examiner

________________________ External Examiner

DECLARATION

I hereby declare that the project work entitled CUSTOMER SATISFACTION TOWARD LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE is submitted to Bharathiar University, Coimbatore ,in partial fulfillment of the requirement of the award of the degree of MASTER OF COMMERCE is a record of original project work done by me during the period of study from 2011-2012 in Department of Commerce & IB, V.L.B.Janakiammal College of arts and science, Coimbatore under the supervision Mr., RAJKUMAR M.com., M.PHIL., Lecturer, Department of Commerce & IB.

PLACE DATE

: COIMBATORE :

GOWTHAM.P (Reg.No: 103AA0129)

ACKNOWLEDGEMENT
Motivation is the driving force behind every successful venture. With regard to the completion of the project, I wish to acknowledge the following people who were the sources of motivation behind the successful execution of the report. I express my heartfelt thanks to the God for showing his grace and blessing on me as a result of which this training has been completed successfully in time. I wish to express my sincere thanks and gratitude to our Secretary Dr. K.Palaniappan, M.Sc., Ph.D., VLB Janakiammal college of Arts & Science, Coimbatore for granting permission to do institutional training. I sincerely thank our Principal N.RajakumarM.Sc.,M.Phil.,M.Ed.,Ph.D., for giving me the opportunity to do this industrial training and his support throughout the training period. My sincere thanks to Mr. R.Sunderaraj, M.Com., M.Phil., D.H.T., Head of the Department of commerce & IB for his guidance and also for his most valuable suggestion throughout the training period. I wish to express my sincere gratitude to my Guide Mr., Rajkumar M.com., M.PHIL., lecturer in Commerce and IB for her constant encouragement and technical advice which helped me for completing the training successfully. I also express my sincere thanks to all the staffs of Commerce and IB who have helped me in the successful completion of the project. I also extend my thanks to my family and to all my friends without whose assistance and guidance, this project works would not have been a reality.

CONTENTS
CHAPER TITLE

PAGE.NO

ACKNOWLEDGEMENT

LIST OF TABLE

LIST OF CHART

INTRODUCATION AND DESIGN OF THE STUDY

1 6 9 18 53 57 58

II

REVIEW OF LITERATURE

III

PROFILE OF THE COMPANY

IV

ANALYSIS AND INTERPRETATION

SUMMARY OF FINDINGS,SUGGSTION

CONCLUSION

BIBLIOGRAPHY

APPENDIX

LIST OF TABLES
S.NO 1 2 3 4 5 6 7 8 9 LIST GENDER CLASSIFICATION OF RESPONDENTS MARITAL STATUS OF THE RESPONDENTS EDUCATION QUALIFICATION OF THE RESPONDENT OCCUPATION STATUS OF THE RESPONDENTS MONTHLY INCOME OF THE RESPONDENT FAMILY SIZEOF THE RESPONDENTS AWARENESS OF LIC HOUSING FIANCES PURPOSE OF THE LOAN AVAILED OF THE RESPONDENT SPECIAL REASON FOR PREFERING LIC HOUSING FINANCE 10 11 12 13 PERFORMANCE OF LIC HOUSING FINANCE RATE OF INTREST CHARGED BY LIC LOAN DURATION PROCESS OF LIC HOUSING FINANCE TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION BY RESPONDENT 14 15 16 17 PURPOSE OF CONSTRUCTING THE HOUSE METHOD OF PERFERRED CONSTRUCTION THE HOUSE LOCATION OF SITE PROBLEMS FACED BY THE RESPONDENT 45 47 49 51 37 39 41 43 PAGE.NO 19 21 23 25 27 29 31 33 35

LIST OF CHARTS S.NO 1 2 3 4 5 6 7 8 9 LIST GENDER CLASSIFICATION OF RESPONDENTS MARITAL STATUS OF THE RESPONDENTS EDUCATION QUALIFICATION OF THE RESPONDENT OCCUPATION STATUS OF THE RESPONDENTS MONTHLY INCOME OF THE RESPONDENT FAMILY SIZEOF THE RESPONDENTS AWARENESS OF LIC HOUSING FIANCES PURPOSE OF THE LOAN AVAILED OF THE RESPONDENT SPECIAL REASON FOR PREFERING LIC HOUSING FINANCE 10 11 12 13 PERFORMANCE OF LIC HOUSING FINANCE RATE OF INTREST CHARGED BY LIC LOAN DURATION PROCESS OF LIC HOUSING FINANCE TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION BY RESPONDENT 14 15 16 17 PURPOSE OF CONSTRUCTING THE HOUSE METHOD OF PERFERRED CONSTRUCTION THE HOUSE LOCATION OF SITE PROBLEMS FACED BY THE RESPONDENT 46 48 50 52 38 40 42 44 PAGE.NO 20 22 24 26 28 30 32 34 36

CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY Introduction

House is the first unit of society and it is primary unit of human habitation. The house is built to grant protection against wind & weather and to give insurance against physical in security of all kinds. As a matter of facts the house has come to occupy an increasing role as a framework of family and social life. East or west home is the best. Foot to eat, clothes to wear, house for shelter. So house is a common slogan of almost all the house holders in India whether are have or have not. In India the demand for new house is on the increase over the years due to increase in population. India needs millions of new house every year. With this end in view the government of India and the government of Tamil Nadu have formulated many development projects for housing. The LIC Housing Finance Limited, housing Development Finance Corporation and Can find Housing Limited, India Housing Development Finance Corporation Ltd., are the popular institutions in the field of Housing Finance Market. All these effects of Government of India, State Government and the Financial Institutions have led to the growth of Housing in India. The present study is an attempt to the impact of the utilization of the LIC housing Loan in Coimbatore.

Scope of the study

This study aims at investigating the extent of Lic Housing finances in Coimbatore and its impact on the customer availing Lic Housing Loan.

Objective of study
1. To study the concept of housing loan by LIC Housing Finance Ltd 2. To High light the extent of the utilization of the LIC Housing loan 3. To study the purpose of the LIC Housing loan 4. To Identify the problems faced by the LIC policy holder while getting loan 5. To offer suggestions for the growth of LIC housing loan

METHODOLOGY AND TOOLS APPLIED

This study is based on questionnaires first hand data were collected directly from the policy holders and from the records of the offices like LIC HOUSING FINANCE LIT AVAINASI ROAD COIMBATOR. The study has involved a survey of the selected policy holders thought data was collected questionnaire. The following statistical techniques were used in the study Simple Percentage Analysis Tools and charts used.

AREA OF THE STUDY

The area of the study refers to Coimbator city.

PERIOD OF STUDY
The period of study was conducted from December 2011 to February 2012

FIELD WORK AND COLLECTION OF DATA

Filed work for this study was carried on by the research himself in the month of December to March. The research has used Questionnaires method for collecting data. 150 respondents has selected by using the convenient Random sampling Method. Who have borrowed housing loan from the LIC HOUSING FINANCE LTD. The researcher explained the content of the Questionnaires and gives it. The second visit were made on the fixed time and the research collects the filled interview schedules and hearted the ideas of the respondent about the Lic housing finance Lid.

LIMITIONS OF THE STUDY

Number of the policy holders taken for the study are very limited (150 respondent) The study cover only coimbator city. This study based on only the information gives by the respondent.

OPERATIONAL DEFINITION
LIC HFL-LIFE INSURANCE CORPORATION HOUSING FIANCE LIMIT CHAPTER SCHEME CHAPTER 1 INTRODUCTION AND DESIGN OF THE STUDY Its deals with introduction, Scope of the study, Objective of study Scope of the study
methodology and tools applied,

area of the study, period of study

Field work and collection of data. CHAPTER 2 REVIEWE OF LITERATURE Its deals with a brief review of the literature relevant to Lic housing loan. CHAPTER 3 PROFILE OF THE COMPANY. CHAPTER 4 ANALYSIS AND INTERPRETATION Its deals with analysis and interpretation of the collected data. CHAPTER 5

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION its deals with findings, suggestion and conclusion

CHAPTER II REVIEW OF LITERATURE

The chapter makes a brief review of the literature relevant to LIC housing finance and home loans. There are only limited studies, which are directly relevant to the study concerned. The researcher has made an attempt to present a brief review of the literature available, which consists of articles published in journals and M.Com, M.Phil thesis in the related area.

Krishnan (1989) - in his article in Business India about role of LIC in lending Home Loans have stated that over 60 per cent of the business of LIC HFL is believed to be generated by the LIC Agents. He identified that with two structures of loans (With and without policy). There is a possibility of some losing interest.

D.Murthy (1991) in his study states that higher percentage of the person prefer the LIC housing loan for the reason that it covers risk in case of unfortunate death and it bears low interest rate and majority of the loans prefers interest plus premium as the mode of repayment most of the respondents feel that LIC charges are reasonable.

M.Venkatraman (1992) in his study found that all the respondents have seen advertisement for home loans. He also identified that the respondents prefer the payment for purchase of housing flats must be an installment basis. He added that by this perception of customers, there will be possibility of availing home loans to a greater extent, if these institutions properly identify the customers. 6 Vijayan (1995) in his study on LIC housing loan have identified that national Housing Bank refinance is directly tied to individual housing loan at fixed rate of interest lower than the rate of housing finance institutions charges to the borrower. As the NHB provides the Sources for the funds the risk of default is still borne by the LIC housing finance institution. One of the greatest potential sources of funds for housing finance institution in securitization of mortgages.

P.K. Umamaheswari (1999) - in her study states that Home loans have to come to rescue the credit crisis by a misting to a greater extent. She also identify people are unaware and out of fear of interest charged and burden, do not prefer these scheme to a greater level. If all there are identify properly there will be greater change in economic conditions of the people and the goal of House for all can be achieved easily.

Mr.R.Kamaraj (2002) who is working in LIC as an Area Field Officer? In his statement now a day the commission of LIC agent was reduced, in agent point of view it affects the growth of LIC HFL.

R.N. Malhotra (2003) in his article in RBI Bulletin state that inadequacy of finance resources is not the sole inhabiting factors in housing development. It can be solved by

institutions effective lending of home loans, like, LIC, HDFC, and other Banks etc.

Ravindra Bandekar (2005) - in his article business world has analyzed the prospect of LIC Housing finance ltd. He concluded that, if is a social sector in the service of the nation helping ordinary Indians build homes.

Dr.C.Harichandran (2006) - in his articles housing has identified housing as a basic need. The high prices have kept it at pay for many particularly the weaker sections of the society financing of housing. Serious problem which the national housing policy aims at mitigating. He also indentified that Government investment in this sector has been on the increase yet not the level expected. Hence the rate of institutional finance assumes vital importance. The HUDCO, HDFC, LIC & Banks can provide housing finance.

The another article published the current status of the life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life Insurance in India created huge surpluses and contributed around 7 per cent of Indias GDP in 2006.

CHAPTER III

Profile of the company

LIC Housing Finance Ltd one of the largest stand alone Housing Finance Company I India prides itself having provides finance for over 8, 50,000 house in the country. The company which was promoted by today most trust service brand Life insurance Corporation of India in 1989, has come a long ways and is surging ahead with a clear vision to emerge as the Best Housing Fiancs Company with strongly embedded values of fair and transparent business practices. In the process the company has won the trust and confidence of home finance seekers. LIC Housing Finance Ltd went public in 1994 and has been a profit making entity year after year It has always provided finance at affordable and competitive rates making it preferred destination for Customers The Company has consistently improved on its product offerings and services standard there By ensuring the best deal to the customers. Today in addition to loan for purchase of house/flat/plot, it also proving fiancs for renovation and repair house.

9 Main location : 1989 Bombay life Building 2nd Floor, Mumbai 400 001. Coimbatore Location : LIC Housing Finance Avinasi road Coimbatore. 641028 Main office Operating office Banks Phone number Website : : : : : 6, 115 SBI, HDFC 22049682/ 22049799/ www.lichousing.com Regional office 18

SET UP
Incorporation Authorized Capital Paid-up Capital : : : 19th June 1989 Rs. 1,00,00,00,000 Rs. 84, 99, 63,475

No. of Employees No. of Offices

: : : :

8861(as on 31/10/2011) 18 Regional Offices 6 Main Offices 115 Area Offices 10

SHAREHOLDING PATTERN (as on 31st March2011)

LIC of India Mutual Funds & UTI Banks & FIs. Etc

: : :

39.084per cent 3.741 per cent 3.614 per cent 35.315 per cent 18.246 per cent

Foreign Institutional Investor : Others :

MAIN OFFICE
There were 6 main offices in India New Delhi Kolkata

Luck now Chennai Mumbai

Bangalore

11

REGIONAL OFFICE
There were 18 Region offices in India namely, Chandigarh Nagpur New Delhi Hyderabad Luck now Pune Siliguri Mumbai Jaipur

Chennai Vadodara Bangalore Bhopal Coimbatore Ranchi

12

Operating Offices
LIC HLF has been 115 operating offices thoughts the country

INDIVIDUAL HOUSING LOAN SCHEMS Loan to individual for new house Property:
Loan up to 85 per cent of property cost Loan amount starting from Rs 1,00,000 Term up to 20 years

Loan to Non-Resident Indians

Exclusive Scheme for NRIs

Loan up to 70 percent of property cost. Loan amount starting from Rs 5,00,000 Term up to 10 years

Mortgage Loan of existing house property

Loan for personal / business need against first mortgage of self occupied residential house / flat Loan amount starting from Rs 2,00,000 Term up to 15 years 13

Loans to Corporate Employees

Scheme for Employees , Public Limited and Selected private Ltd Companies Lower rate of interest if payment is through salary deduction
Upfront fee waiver up to 0.50 percent

THE LOAN PROCESS

Application form filled Identity proof:

Copy of income Tax PAN Card /Passport/Voter ID Card /Driving License/Photo Credit Card/Employee ID Card as the case may me. Income Document

In case of salaried person

Copies of last 3 mouth Pay Slips Copy of From 16 & ITRof latest Assessment year Copy Salary bank passbook statement for at last 6 month.

14

In case of self-Employed Persons/ Professionals

Copies Income computation Statement & full set of Financials for last 3 Assessment years A Note on the Business / professional Activities. Copies of Bank Passbooks/ Statement for at least past for 6 mouth.

ADVANTAGES OF LIC HFL LOAN

Competitive interest rate Fixed Floating Rate Special Concessions of Employers of approved corporate Loans Against Securitization of Rentals Double tax benefits on Interest & Principal NO commitment Charges for Undrawn Loan Amount

15

REQUIREMENT
Personal Documents: 1. Application from with 2 photos , duty filled in & signed 2. Copy of Ration Card/ Phone Bill/ Driving License copy ( residence proof)

3. Copies of Bank Statement for last 6 months 4. Income Documents: a) If salaried: Salary certificate from the Employer in LICHFL format. Salary slips (2 or 3 months) copies From 16 Xerox. Appointment order copy (if new employment) b) If Self employed: Last 3 years Income Tax Returns (filed in relevant years) Certified by Auditor Computation of Income certified by Auditor for 3 years Pan Card copy Tax paid (Bank) Chelan copies Introduction / Creditworthiness letter from Auditor 16

LIC POLICIES HOLDERS IDENTY.

Xerox Copies of existing LIC polices (1 page)

 Approved Building Plan Original (2 copy) Estimate for construction / extension / renovation attested by an Engineer. Housing tax receipts (Purchase cases & take over cases only) Preliminary inspection report by Panel Value. Copy of land documents in applicants favor (2 copies) Parent document for last 12 years ( 2 copies at initial stage, original at disbursement stage) Encumbrance certificate for the last 15 years ( 2 copies) Sale Agreement (Purchase cases only ) In case of take over loans

CHAPTER IV ANALYSIS AND INTERPRETATION

In the order to study the customer satisfaction toward LIC HOUSING FIANCE with special reference to coimbator structured Questionnaire consists of 23 was prepared. A sample of

150 respondent was selected from coimbator city and information obtained from them were presents in different tables by using percentage analysis This analysis helps that a common man to understand what percentage the respondent belong to each category of a factor.

TABLE NO 4.1

GENDER OF THE RESPONDENTS

NO 1 2

Gender Male Female Total

Number 119 31 150

Percentage 79.33 20.66 100

Source: Primary Data It could be seen that majority 80% of the respondent are male and only 20% of the respondent are female. So it can be concluded that the majority 80% of the respondent are Male

19

CHART NO - 4.1

GENDER OF THE RESPONDENTS

Table

male female

20

TABLE NO 4.2

MARITAL STATUS OF THE RESPONDENTS

MARITAL STATUS Married Unmarried Total

NO OF RESPONDENTS 129 21 150

PERCENTAGE 86 14 100

Source: Primary Data

Its is understood from the above table that, out of total respondent 86% are married. While 14% are unmarried.

So, its can be conclude that the majority (86%) of the respondent are married.

21

CHART NO 4.2

MARITAL STATUS OF THE RESPONDENTS

TABLE NO - 4.3 EDUCATION QUALIFICATION OF THE RERSPONDENT

EDUCATION

NO OF

PERCENTAGE

QUALIFICATION RESPONDENTS No formal Education School Level UG / Diploma PG Professional Total 27 41 30 37 150 18 27 22 25 100 15 10

Source: Primary Data

Its is know from the above table out of the total respondent takes for study, 10% of the respondent belongs to No formal education , 18% of the respondent belong to School level,27% of the respondent belong that UG and Diploma and the 22% of the respondent belong to PG, 25% of the respondent belong that of professional. Majority of the respondent belong that to under graduate diploma level. 23

CHART NO 4.3

EDUCATION QUALIFICATION

100 90 80 70 60 50 PERCENTAGE 40 30 20 10 0 No formal Education School Level UG / Diploma PG Professional

24

TABLE NO - 4.4

OCCUPATION STATUS OF THE RESPONDENTS

STATUS

NO OF RESPONDENTS

PERCENTAGE

Agriculture Business/Profession Government employee PVT employ Total Source: Primary Data

21 54 36 39 150

14 36 24 26 100

Its is know from the above table out of the total respondent takes for study the, 36% of the respondent belongs to business or profession, 26%of the respondent belongs to private employee,24% of the respondent belong that Government employee and the 14% of the respondent belong to Agriculture category. Majority of the respondent belong that to Business/Professional.

22

CHART NO - 4.4

OCCUPATION STATUS OF THE RESPONDENTS

100 90 80 70 60 50 40 30 20 10 0 14 36 24 26 Percentage

26

TABLE NO - 4.5 MONTHLY INCOME OF THE RESPONDENT

STATUS

NO OF RESPONDENTS

PERCENTAGE

Below Rs 10000 Rs 10001-20000 Rs 20001-30000 Above 30000 Total

30 54 21 45 150

20 36 14 30 100

Source: Primary Data From the above table, it is clear that out of that total respondent ,20% of the resondent belong s to the income group of below Rs 10000, 36% of them belong of the income group of Rs.10001-Rs 20,000. 14% of the respondent belongs to the income group of Rs.20001-Rs 30,000 and 30% of the respondent belong to the income group of above Rs 30,0000 Its the concluded that the majority of the respondent belongs to the income group of Rs.10,001-Rs 20,0000

27

CHART NO - 4.5
MONTHLY INCOME OF THE RESPONDENT

100 90 80 70 60 50 Percentage 40 30 20 10 0 Below Rs 10000 Rs 1000020000 Rs 2000030000 14 20 36 30

Above 30000

28

TABLE NO 4.6 FAMILY SIZE OF THE RESPONDENT

SIZE OF THE FAMILY Up to 2 members 2-3 3-5 Above 5 Total

NO OF RESPONDENTS 24 54 42 30 150

PERCENTAGE% 16 36 28 20 100

Source: Primary Data

The above data, it is clear that out of the total respondent 16% the family size is up to 2 members, 36 % members of the respondent size o family size of the 2-3 members , 28% of the respondent have the family size is 3-5 members, and 20% of the respondent belong to the family size is above 5 members. Hence it can be concluded that, the majority of the respondent have the family size of 2-3 members

29

CHART NO 4.6

FAMILY SIZEOF THE RESPONDENT

TABLE NO - 4.7 AWARENESS OF THE RESPENTENT

STATUS

NO OF RESPONDENTS

PERCENTAGE

Agent Friends Relatives Advertisement Total

54 30 21 45 150

36 20 14 30 100

Source: Primary Data From the above table showing, 36% of the respondent saying that the Awareness is through the Agent ,20% of the respondent saying that the awarness through Friends , 14% of the respondent saying awarness through Relative, 30% of the respondent have no idea about the Advertiment media.

Majority of the respondent have Awareness through the agent Of LIC HFL.

31

CHART NO - 4.7 AWARENESS OF THE RESPENTENT

32

TABLE NO - 4.8 PURPOSE OF THE LOAN AVAILED

STATUS

NO OF RESPONDENTS

PERCENTAGE

Construction of New house Alteration of old house Purchase of new house Purchases of old house and alternative Total

54 39 36 21

36 26 24 14

150

100

Source: Primary Data Its is known from the above table out of the total respondent taken for the study, 36%of the respondent belongs to Construction of New house, 26% of the respondent belong to Alteration of old house ,24% of the respondent belong that Purchase of New house and the 14%of the respondent belong to Purchases 0f old house and alternative. Majority of the respondent belong the Construction New house

33 CHART NO - 4.8 PURPOSE OF THE LOAN AVAILED

34

TABLE NO - 4.9 SPECIAL REASON FOR PREFERING LIC HFL

STATUS

NO OF RESPONDENTS

PERCENTAGE

Risk covers death Easy procedure Interest rate others (specific) Total

78 36 21 15 150

52 24 14 10 100

Source: Primary Data The table reveals that majority 52% of the respondent has Risk covers death , 24% respondent as prefer by it has Easy procedure, 14 % respondent prefer interest rate and 10% respondent other specific

The majority people special reason to prefer lic housing finance was Risk cover death

35

CHART NO - 4.9

SPECIAL REASON FOR PREFER LIC HOUSING FINANCE

36

TABLE NO - 4.10 PERFORMANCE OF LIC HOUSING FINANCE

STATUS

NO OF RESPONDENTS

PERCENTAGE

Excellent Better Not satisfied others (specific) Total

18 45 54 33 150

12 30 36 22 100

Source: Primary Data From the above table showing, 12% of the respondent saying that they excellent service,30% of the respondent saying that better service, 36% of the respondent saying that are not satisfatied, only 22% of the respondent have no idea about the performance of the LIC HFL. So, majority of the respondent saying that, they are not satisfied, because of delayed, approval by the LIC HFL.

37

CHART NO - 4.10 PERFORMANCE OF LIC HOUSING FINANCE

38

TABLE NO - 4.11
THE RATE OF INTEREST CHARGED BY LIC HFC

STATUS

NO OF RESPONDENTS

PERCENTAGE

High Medium Low Very low Total

69 57 15 9 150

46 38 10 6 100

Source: Primary Data Its is know from the above table out of the total respondent takes for the study, 46% of the respondent belongs to High rate , 38% of the respondent belong to Medium rate interest ,10% of the respondent belong that Low interest rate and the 6% of the respondent belong to Very low interest rate. Majority of the respondent belong that to High rate of interest.

39

CHART NO - 4.11
THE RATE OF INTEREST CHARGED BY LIC HFC

42

TABLE NO - 4.12 LOAN DURATION PROCESS OF LIC HOUSING FINANCE

STATUS

NO OF RESPONDENTS

PERCENTAGE

Below 1 month 1 month to 2 month 2 month to 3 month 3 month to 4 month Others (specific) Total

22 40 46 32 10 150

15 27 31 22 5 100

Source: Primary Data From the above table showing, 15% of the respondent says that Below 1 month ,27%of the respondent saying that 1 to 2 month, 31 % of the respondent says that 2 to 3 month , 22% respondent 3 to 4 month,only 5% of the respondent have no idea. So, majority of the respondent saying that, they are loan duration processi ng are 2 to 3 months.

41

CHART NO - 4.12 LOAN DURATION PROCESS OF LIC HOUSING FINANCE

100 90 80 70 60 50 40 31 30 20 10 0 Below 1 month 1 month to 2 2 month to 3 3 month to 4 Others month month month (specific) 15 5 27 22

percent

42

TABLE NO 4.13 TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION BY THE RESPONDENTS

STATUS

NO OF RESPONDENTS

PERCENTAGE

Single House Bungalow Apartment others (specific) Total

72 39 24 15 150

48 26 16 1 100

Source: Primary Data Its is know from the above table out of the total respondent taken for study, 48% of the respondent preferred Single House 26% of the respondent preferred that Bungalow, ,16% of the respondent preferred Apartment and 10% of the respondent. Preferred that others.

Majority of the respondent preferred that used to loan for construct the single Single House .

43

TABLE NO -4.13 TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION OF THE RESPONDENTS

Precentage
100 90 80 70 60 50 Precentage 40 30 20 10 0 Single House Bungalow Apartment others (specific) 48 26 16 10

44

TABLE NO 4.14 PURPOSE FOR CONSTRUCTING THE HOUSE

STATUS

NO OF RESPONDENTS

PERCENTAGE

Residential house Rental house Business others (specific) Total

81 30 24 15 150

53 20 17 10 100

Source Primary Data It is clear that the object of constructing a house 53% of the respondent have constructed for their own residential purpose, 20 % the respondent of rental house, 17% are Business purpose, 10% are other purpose So Majority of the respondent like to fulfill their Residential purpose

45

CHART NO 4.14

PURPOSE FOR CONSTRUCTING THE HOUSE

46

TABLE NO 4.15 METHOD PERFERRED FOR CONSTRUCTION OF THE HOUSE

STATUS

NO OF RESPONDENTS

PERCENTAGE

Direct employed Self employed Contractors Engineers Total

45 30 60 15 150

30 20 40 10 100

Source: Primary Data From the above table, we can clear that, 30% of respondent have that house by the way of Direct employed , 20% of the respondent have Self Employed as masons and labours for their construction work and 40% of the respondent have appointed contractors and Engineers for their construction work Balance 10% of the respondent have prefer any other method of both of them So, Majority of the respondent like to build their house through contractor

4u

CHART NO - 4.15 METHOD PERFERRED FOR CONSTRUCTION OF THE HOUSE

48

TABLE NO 4.16 LOCATION OF SITE

STATUS

NO OF RESPONDENTS

PERCENTAGE

Rural urban area Develop area others (specific) Total

42 45 45 18 150

28 30 30 12 100

Source: Primary Data From the above table, we can clear that, 28% of respondent have that Rural area, Next 30 % of the respondent have ,Urban Area as masons and labours for their Develop Area 30% of the respondent balance 12% of the respondent have selected any other local Ares.

So, Majority of the respondent are selected urden as well as developed area for their future convenience.

51

CHART NO 4.16 LOCATION OF SITE

52

TABLE NO - 4.17

PROBLEMS FACED BY POLICY HOLDER WHILE GETTING LOAN

STATUS

NO OF RESPONDENTS

PERCENTAGE

Agent Engineers Delayed Approval others (specific) Total

15 33 87 15 150

10 22 58 10 100

Source: primary Data

The table shows that among the total respondent faced problems 10% at Agents ,22 problem faced at Engineers ,58% Delayed Approval ,balance faced 10 per cent faced others problems So majority Delayed Approval it faced at problems faced by policy holder while getting problems

51

CHART NO - 4.17

PROBLEMS FACED BY POLICY HOLDER WHILE GETTING LOAN

52

CHAPTER

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

Now a day the demand for housing loan though LIC housing finance limited is on increasing level. Coimbator is fast developing industrial town in Tamil Nadu state. People from other districts also come to coimbatore in considerable number and settlehear. The increase in population and influx of people from other districts create moredemand for house every year. This is an attempt investigation the extent CUSTOMERSATISFACTION TOWARD LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE

55

FINDINGS.
The following are the major findings of the study on the application of percentage analysis:

Majority of the respondent of that the majority 80% of the are Male. Majority of that (84%) of the respondent was are married. Majority of that respondent are completed their under graduate and diploma level Majority of the respondent belong that to Business/Professional. Majority of the respondent belong to the income group of Rs.10,001-Rs 20,000 Majority of that respondent have the family size is 2 to 3 members Majority of the respondent have Awareness through the agent Of LIC HFL. Majority of the respondent belong that to Construction New house

 The majority people special reason to prefer lic housing finance was Risk cover death

56 Majority of the respondent saying that, they are not satisfied, because of delayed, approval by the LIC HFL. Majority of the respondent belong that to High rate of interest. Majority of the respondent saying that, they are loan duration processing are 2 to 3 months. Majority of the respondent preferred that used to loan for construct the single Single House. Majority of the respondent like to fulfill their Residential purpose Majority of the respondent like to build their house through contractor and Engineers. Majority of the respondent are selected urban as well as developed area for their future convenience. So majority Delayed Approval it faced at problems faced by policy holder while getting problems .

57

SUGGESTIONS

Agents service is most important in this field. So the LIC HFL should improve the agent services The Advertisement of home loans should be given more effectively. So as to reach all the people in a both urban and rural area. Most of the respondents feel that the processing of loan is very length and irritating. So the LIC HOUSING can reduce the processing o loan for easy applicable. Now a days lot of private as well as Government banks and financial institutions provide the housing loans at cheaper rate of interest than the LIC HFL so it may reduce their rate of interest. Assistance should be provide for repair and maintainance of the house in large level. It will increase the borrowers of home loans.

 Procedure for providing loan should be reduced A coimbatore its industrial town more and more people from other district come and get employment hear so agent may approach all the employees and self employed person who had came from other districts and help more people to get housing loan.

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CONCLUSION
Finally concluded that the LIC HFL can fulfill the constant increase of the population and their housing needs by properly utilizing its agents liberalizing the terms and conditions of the home loan. LIC HFC provides assistance from 1,00,000 to 1 crore. If less rate of interest and quick processing time is implement, the customers can be benefited by the assistances availed by the LIC HFC and it can play vital role in housing finance.

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BIBLIOGRAPHY TEXT BOOKS

1. Fundamentals of markets 2. Bank Marketing 3. Research Methodology 4. Business Research method 5. Housing in India 6. Housing Patterns _ William Joseph. Smith. Gupta s.p. Emory. Ramarao.G. Pankaj Agrwal.

NEWS PAPERS AND MAGAZINES

7. Business World. 8. Business India. 9. Economic Time.

WEBSITES
10. www.goole.com 11. www.lichousing.in 12. www.wikipedi.com