A Research Report

Subject Code: 576221(76)

On

Consumer perception towards Home Loan Submitted for partial fulfillment of requirement for the award of degree Of

Master of Business Administration

Of

CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSTY BHILAI (C.G.) Session 2012-14

Supervision By: Prof. Gazala Y. Ashraf Assistant Professor Faculty of Management

Submitted by:
Sujeet Pandit Roll No.5057612094 MBA II Semester Section A

FACULTY OF MANAGEMENT
DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY
(Disha Education Society) Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud, Raipur (C.G.) 492007

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled Consumer perception towards Home Loan, is based my own work carried out during the course of my study under the supervision of Prof. Gazala Y. Ashraf.

I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

__________________ Sujeet Pandit Roll No.: 5057612094

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CERTIFICATE BY GUIDE

This to certify that the report of the project submitted is the outcome of the project work entitled Consumer perception towards Home Loan carried out by Sujeet Pandit bearing Roll No.:5057612094 & Enrollment No.:AK6995 carried by under my guidance and supervision for the award of Degree in Master of Business Administration of Chhattisgarh Swami Vivekananda Technical University, Bhilai (C.G), India. To the best of the my knowledge the report i) ii) iii) Embodies the work of the candidate him/herself, Has duly been completed, Fulfils the requirement of the ordinance relating to the MBA degree of the University and iv) Is up to the desired standard for the purpose of which is submitted.

_______________________ (Signature of the Guide) Prof. Gazala Y. Ashraf Asst. Prof. Faculty of Management DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud, Raipur (C.G.) 492007 The research report as mentioned above is hereby being recommended and forwarded for examination and evaluation.

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CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled Consumer perception towards Home Loan Submitted by Sujeet Pandit Roll No.:5057612094 Enrollments No.:AK6995. Has been examined by the undersigned as apart of the examination for the award of Master of Business Administration degree of Chhattisgarh Swami Vivekananda Technical University, Bhilai (C.G.).

________________ ________________ Name & Signature of Internal Examiner Date:

__________________ __________________ Name & Signature of External Examiner Date:

Forwarded by Dean Faculty of Management

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ACKNOWLEDGEMENT The success and final outcome of this project required a lot of guidance and assistance from many people and I am extremely fortunate to have got this all along the completion of my project work. Whatever I have done is only due to such guidance and assistance and I would not forget to thank them. I respect and thank Prof. Gazala Y. Ashraf, for giving me an opportunity to do the project work in Consumer perception towards home loan and providing us all support and guidance which made me complete the project on time. I am extremely grateful to her for providing such a nice support and guidance though she had busy schedule. I would not forget to remember Prof. Suresh Pattanayak, Prof Rupesh Kr. Tiwari and all faculty members for their unlisted encouragement and more over for their timely support and guidance till the completion of our project work. I heartily thank our internal project guide, Dr.R.S.Mohan, Dean , Department of Management, for his guidance and suggestions during this project work. I am extremely thankful to all those persons who have positively helped me and customers who respond my questionnaire, around whom the whole project cycle revolves.

Name: Sujeet Pandit Roll.No.: 5057612094 MBA 2nd Sem 2nd Semester Section-A

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PREFACE

This report presents the research, findings and recommendations resulting from the project, Consumer perception towards Home Loan, supported by Prof. Gazala Y. Ashraf and authored by the Dean. The objective was to compile and synthesize information on the status of Consumer perception. 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 perception towards Home Loan management activities consistent with its mandate to promote the orderly, integrated and comprehensive development, use and conservation of the loan. This report has benefitted from the significant input and collaboration of numerous partners that comprised a Project Management Team (PMT). 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 projects many associated components, provides a wealth of information about the bank resources and associated policies.

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I. II. III. IV. V.

DECLARATION CERTIFICATE BY GUIDE CERTIFICATE BYTHE EXAMINERS ACKNOWLEDGEMENT PREFACE

INDEX
Sr. No. Chapter 1 TITLE 1.1 Introduction 1.2 Objective of the Study 1.3 Scope & Limitations of the Study 1.4 Review of Literature Product Profile Research Methodology Analysis and Interpretation Finding and Suggestion Conclusion Bibliography Appendix Page No. 8 14 15 16 18 21 41 57 58

Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6

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1.1 Introduction

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 loan. For this survey was conducted through structured Questionnaire. In todays 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. 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:

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1. 2. 3. 4. 5.

CitiFinancial ICICI bank HDFC bank PNB SBI and many more

Financial institutions and their services offered: ICICI bank: ICICI Bank offers wide variety of Loans Products to suit the customer requirements. Coupled with convenience of networks branches/ATMs and facility of E-channels like Internet and Mobile Banking.

Home loan: Attractive interest rates Door-step service from enquiry stage till final disbursement Can transfer the customer existing high-interest rate loan Free personal accidental insurance Special 100percentage funding for select properties HDFC Bank: Home loan: Anew home brings with it new hopes, joys and emotions. At HDFC, we have shared new hopes, joys and emotions with over 26 Lakh customers. Every customer has a specific and unique concern. Having earned an experience of 27 years in home loans, our home loan product is customized to provide the customer solutions for the customers unique concern. Features: Maximum loan 85percentage of the cost of the property (including the cost of the land) and based on the repayment capacity of the customer.

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Maximum Term 20 years subject to the customers retirement age. Applicant and Co- Applicant to the loan Home Loans can be applied for either individually or jointly. Proposed owners of the property will have to be co- applicants. However, the coapplicants need number be co-owners.

Adjustable Rate Home Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on the customers loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on the customers loan may change. However, the EMI on the home loan disbursed will not change*. If the interest rate increases, the interest component in an EMI will increase and the principal component will reduce resulting in an extension of term of the loan, and vice versa when the interest rate decreases. Fixed Rate without money market conditions- Rate of interest will not change. with money market conditions- Rate of interest will not change due to money market conditions for two years from the date of first disbursement of the loan. Purchase of:O Flat,

row house, bungalow from developers freehold properties

O Existing O

Properties in an existing or proposed co-operative housing society or apartment owner's

association
O First

Power of Attorney purchases in Delhi for DDA flats allotted before 1992.

Self Construction Features Purpose

O External O Tiling

repairs

and flooring and external painting work

O Internal

O Plumbing and electrical

O Waterproofing and roofing

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O Grills

and aluminum windows terrace

O Waterproofing on O Construction O Paving

of underground/overhead water tank

of compound wall (with stone/tile/etc.) Customer 100percentage of the cost of improvement

O Existing O New

Customer 5percentage of the cost of improvement

Adjustable Rate Home Loan Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on the customers loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on the customers loan may change. However, the EMI on the home loan disbursed will not change*. If the interest rate the interest component in an EMI will increase and the principal component will reduce resulting in an extension of term of the loan, and vice versa when the interest rate decreases. Fixed Rate With money market conditions- Rate of interest will not change due to money market conditions for two years from the date of first disbursement of the loan*.

State Bank of India (SBI): HOUSING LOAN: Home is where the heart is! At SBI, we understand this better than most the toil and sweat that goes into building/ buying a house and the subsequent pride and joy of owning one. This is why our Housing loan schemes are designed to make it simple for the customer to make a choice at least as far as financing goes! Unique features: Number cap on maximum loan amount for purchase/ construction of house/ flat Option to club income of the customers spouse and children to compute eligible loan amount. Provision to club expected rent accruals from property proposed to compute eligible loan amount Provision to finance cost of furnishing and consumer durables as part of project cost Repayment permitted up to 70 years of age

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Optional Group Insurance from SBI Life at confessional premium (Upfront premium financed as part of project cost) Interest applied on daily diminishing balance basis Plus schemes which offer attractive packages with confessionals interest rates, margins and processing fee to Govt. Employees, Teachers, Scientists, Employees in Oil sector, Journalists (in select cities) etc. Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat Option for E-banking Need for the study: Assets are insured; because they are likely to be destroyed through accidental occurrences such possible occurrences are called perils. Fire floods breakdowns, lighting, and earth quakes etc. If such perils can cause damage to the asset the asset is exposed to that risk. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the contingency that it may happen. There has to be an uncertainty about the risk. Insurance is relevant only if there are uncertain. In the case of a person who is terminally ill the time of death is not uncertain though not exactly known. Insurance does not protect the asset. It does not prevent its loss due to the peril .The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. It only compensates the loose and that too, not fully. Only economic consequences can be insured. If the loss is not financial insurance may not be possible.

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1.2 OBJECTIVES

PRIMARY OBJECTIVE:

Analyzing the customers PERCEPTION on home loans offered by banks.

SECONDARY OBJECTIVES:

1.

To find out various types of loan 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. 7. To evaluate the customer satisfaction regarding various services offered at banks.

HYPOTHESIS:
Quite often a research hypothesis is a predictive statement, capable of being tested by scientific methods that relates and independent variable to some dependent variable. The following hypotheses were set in order to achieve the objectives. There is no significant relationship between the purpose of investment in insurance and the annual income. There is no significant relationship between the risk taken while investing and the amount invested. There is no significant relationship between age of the respondent and the risk taken by them while investing.

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1.3 SCOPE AND LIMITATIONS OF THE STUDY SCOPE OF THE STUDY

The scope of the study is to analyze the satisfaction level 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 customers.

LIMITATIONS OF THE STUDY 1. 2. 3. The study is limited to all over India. Because of the limited time, research is conducted with only 80 customers. 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. busy. On few occasions customer were reluctant to give information, because they were

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1.4 REVIEW OF LITERATURE

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, Numberv2004 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 Dec2004 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 consumers point of view,

In Indian Journal of Marketing, May04 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

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.,

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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. b. c. d. e. f. the product the company, industry and competition the market the channel of distribution the sales 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.

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2. PRODUCT PROFILE The different services provided by Banks: 1. Home loan Home Purchase Finance Fund the customers 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 customers money! Have the customers existing Home Loan bought over and enjoy extra cash up to 80percentage of market value of the customers home. Loan up to Rs. 75 Lakh*. Home Improvement Finance If the customer is looking to renovate the customers 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 customers 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 Flexible property norms Approved plans are not mandatory Funding for Builder Flats Hassle-free and fast service

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2. Home return: The customers home is more than just four walls and a roof that provides shelter for the customer and the customers 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 customers 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 customers property. "Home Returns now brings the customer Mortgage Loans for Education. This zero hassle loan helps the customer fund the customers children's higher studies. Want to know how the customers 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 customers 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 customers family members. 3. 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 customers education by giving the customer a loan against the customers home. So if the customer wants to pursue the customers studies in India or overseas, the customer can do so now without any financial worries.

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3. RESEARCH METHODOLOGY

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

DESCRIPTIVE RESEARCH The researcher is 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. 2. Primary data Secondary data

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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 brouchers, statistical and management book, market research books etc. which are presented in the literature various in details 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.

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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 wont 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 disagreeability 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.

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Analysis and Result

1. The decision based on, in processing an application of Home Loan, received the following responses. Frequency:
HL EZY 2 UNDRSTND Cumulative Percent 12.5 42.5 80.0 93.8 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 10 24 30 11 5 80

Percent 12.5 30.0 37.5 13.8 6.3 100.0

Valid Percent 12.5 30.0 37.5 13.8 6.3 100.0

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 Home Loan easy to understand.

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2. The decision based on, mortgage process, received the following responses. Frequency:
MORTG PRCS Cumulative Percent 1.3 26.3 62.5 86.3 96.3 100.0

Frequency Valid .00 1.00 2.00 3.00 4.00 5.00 Total 1 20 29 19 8 3 80

Percent 1.3 25.0 36.3 23.8 10.0 3.8 100.0

Valid Percent 1.3 25.0 36.3 23.8 10.0 3.8 100.0

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 explain thoroughly.

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3. The decision based on, EMI fixed by bank, received the following responses. Frequency:
EMI FIX Cumulative Percent 50.0 81.3 86.3 93.8 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 40 25 4 6 5 80

Percent 50.0 31.3 5.0 7.5 6.3 100.0

Valid Percent 50.0 31.3 5.0 7.5 6.3 100.0

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 bank is correct.

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4. The decision based on, accessibility service received, following responses. Frequency:
SRVC RCVD Cumulative Percent 26.3 51.3 80.0 91.3 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 21 20 23 9 7 80

Percent 26.3 25.0 28.8 11.3 8.8 100.0

Valid Percent 26.3 25.0 28.8 11.3 8.8 100.0

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.

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5.

The decision based on, Interest rates charged by Bank, received the following responses

Frequency:
INTRST CHRG BY BNK Cumulative Percent 28.8 60.0 76.3 96.3 100.0

Valid

1.00 2.00 3.00 4.00 5.00 Total

Frequency 23 25 13 16 3 80

Percent 28.8 31.3 16.3 20.0 3.8 100.0

Valid Percent 28.8 31.3 16.3 20.0 3.8 100.0

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.

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6.

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

Frequency:
HL FVOR Cumulative Percent 33.8 75.0 87.5 96.3 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 27 33 10 7 3 80

Percent 33.8 41.3 12.5 8.8 3.8 100.0

Valid Percent 33.8 41.3 12.5 8.8 3.8 100.0

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.

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7. The decision based on, Documentation Procedure of Bank, received the following responses. Frequency:
DOC PRCZER Cumulative Percent 17.5 55.0 82.5 92.5 100.0

Valid

1.00 2.00 3.00 4.00 5.00 Total

Frequency 14 30 22 8 6 80

Percent 17.5 37.5 27.5 10.0 7.5 100.0

Valid Percent 17.5 37.5 27.5 10.0 7.5 100.0

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.

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8. The decision based on, Processing Fees of Bank, received the following responses. Frequency:
PRCZING FEES Cumulative Percent 7.5 27.5 60.0 91.3 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 6 16 26 25 7 80

Percent 7.5 20.0 32.5 31.3 8.8 100.0

Valid Percent 7.5 20.0 32.5 31.3 8.8 100.0

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.

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9. The decision based on, Sanctioning Procedure, received the following responses. Frequency:
SENCTION PRCZER Cumulative Percent 7.5 20.0 48.8 88.8 100.0

Valid

1.00 2.00 3.00 4.00 5.00 Total

Frequency 6 10 23 32 9 80

Percent 7.5 12.5 28.8 40.0 11.3 100.0

Valid Percent 7.5 12.5 28.8 40.0 11.3 100.0

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.

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10. The decision based on, Sanctioning Time, received the following responses. Frequency:
SENCTION TIME Cumulative Percent 3.8 18.8 41.3 70.0 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 3 12 18 23 24 80

Percent 3.8 15.0 22.5 28.8 30.0 100.0

Valid Percent 3.8 15.0 22.5 28.8 30.0 100.0

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.

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11. The decision based on, Fore Closure Charges, received the following responses. Frequency:
4 CLZR CHRGD Cumulative Percent 8.8 16.3 47.5 66.3 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 7 6 25 15 27 80

Percent 8.8 7.5 31.3 18.8 33.8 100.0

Valid Percent 8.8 7.5 31.3 18.8 33.8 100.0

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.

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12. The decision based on, sanctioning is going online, received the following responses. Frequency:
ONLINE Cumulative Percent 1.3 43.8 55.0 77.5 83.8 100.0

Frequency Valid .00 1.00 2.00 3.00 4.00 5.00 Total 1 34 9 18 5 13 80

Percent 1.3 42.5 11.3 22.5 6.3 16.3 100.0

Valid Percent 1.3 42.5 11.3 22.5 6.3 16.3 100.0

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.

36

13. The decision based on, interest charged by bank should be different on the basis of income level, received the following responses. Frequency:
INTRST AS INCME LVL Cumulative Percent 18.8 28.8 55.0 71.3 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 15 8 21 13 23 80

Percent 18.8 10.0 26.3 16.3 28.8 100.0

Valid Percent 18.8 10.0 26.3 16.3 28.8 100.0

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.

37

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:
SIZ WHL NNP EMI Cumulative Percent 1.3 22.5 48.8 66.3 80.0 100.0

Frequency Valid .00 1.00 2.00 3.00 4.00 5.00 Total 1 17 21 14 11 16 80

Percent 1.3 21.3 26.3 17.5 13.8 20.0 100.0

Valid Percent 1.3 21.3 26.3 17.5 13.8 20.0 100.0

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.

38

15. The decision based on, facility provides by the bank, received the following responses. Frequency:
FCLTY PRVD BANK Cumulative Percent 5.0 15.0 30.0 52.5 91.3 100.0

Frequency Valid .00 1.00 2.00 3.00 4.00 5.00 Total 4 8 12 18 31 7 80

Percent 5.0 10.0 15.0 22.5 38.8 8.8 100.0

Valid Percent 5.0 10.0 15.0 22.5 38.8 8.8 100.0

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.

39

16. The decision based on, prefer public sectors bank for home Loan, received the following responses. Frequency:
PUBLIC SECTOR Cumulative Percent 43.8 67.5 73.8 91.3 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 35 19 5 14 7 80

Percent 43.8 23.8 6.3 17.5 8.8 100.0

Valid Percent 43.8 23.8 6.3 17.5 8.8 100.0

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.

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17. The decision based on, prefer private sectors bank for home Loan, received the following responses. Frequency:
PRIVATE SECTOR Cumulative Percent 32.5 57.5 66.3 81.3 100.0

Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 26 20 7 12 15 80

Percent 32.5 25.0 8.8 15.0 18.8 100.0

Valid Percent 32.5 25.0 8.8 15.0 18.8 100.0

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.

41

42

4. INTERPRETATION AND DATA ANALYSIS 1. FACTOR ANALYSIS SPSS commands for factor Analysis
This page shows an example of a factor analysis with footnotes explaining the output. The data used in this example were collected by Professor James Sidanius, who has generously shared them with us. You can download the data set here. Overview: The "what" and "why" of factor analysis. Factor analysis is a method of data reduction. It does this by seeking underlying unobservable (latent) variables that are reflected in the observed variables (manifest variables). There are many different methods that can be used to conduct a factor analysis (such as principal axis factor, maximum likelihood, generalized least squares, unweighted least squares), There are also many different types of rotations that can be done after the initial extraction of factors, including orthogonal rotations, such as varimax and equimax, which impose the restriction that the factors cannot be correlated, and oblique rotations, such as promax, which allow the factors to be correlated with one another. You also need to determine the number of factors that you want to extract. Given the number of factor analytic techniques and options, it is not surprising that different analysts could reach very different results analyzing the same data set. However, all analysts are looking for simple structure. Simple structure is pattern of results such that each variable loads highly onto one and only one factor. The determination of the number of factors to extract should be guided by theory, but also informed by running the analysis extracting different numbers of factors and seeing which number of factors yields the most interpretable results.
Descriptive Statistics
Mean HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR 2.7125 2.2750 1.8875 2.5125 2.3875 2.0750 2.5250 3.1375 3.3500 3.6625 3.6125 2.3875 3.2625 2.8125 3.0625 2.2375 2.6250 Std. Deviation 1.05775 1.10207 1.19061 1.24264 1.20646 1.07650 1.12481 1.07614 1.08032 1.16862 1.26785 1.51360 1.45605 1.46774 1.32497 1.39841 1.52925 Analysis N 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80

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The table above is output because we used the univariate option on the /print subcommand. Please note that the only way to see how many cases were actually used in the factor analysis is to include the univariate option on the /print subcommand. The number of cases used in the analysis will be less than the total number of cases in the data file if there are missing values on any of the variables used in the factor analysis, because, by default, SPSS does a list wise deletion of incomplete cases. If the factor analysis is being conducted on the correlations (as opposed to the co variances), it is not much of a concern that the variables have very different means and/or standard deviations (which is often the case when variables are measured on different scales). a. Mean - These are the means of the variables used in the factor analysis. b. Std. Deviation - These are the standard deviations of the variables used in the factor analysis. c. Analysis N - This is the number of cases used in the factor analysis. The table above is included in the output because we used the dot option on the /print subcommand. All we want to see in this table is that the determinant is not 0. If the determinant is 0, then there will be computational problems with the factor analysis, and SPSS may issue a warning message or be unable to complete the factor analysis.

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.

.625 591.314 136 .000

a. Kaiser-Meyer-Olkin Measure of Sampling Adequacy - This measure varies between 0 and 1, and values closer to 1 are better. A value of .6 is a suggested minimum. b. Bartlett's Test of Sphericity - This tests the null hypothesis that the correlation matrix is an identity matrix. An identity matrix is matrix in which all of the diagonal elements are 1 and all off diagonal elements are 0. You want to reject this null hypothesis. Taken together, these tests provide a minimum standard which should be passed before a factor analysis (or a principal components analysis) should be conducted.

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Communalities Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .675 .798 .702 .778 .773 .800 .851 .638 .761 .839 .683 .713 .609 .815 .604 .783 .714

HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR

Extraction Method: Principal Component Analysis.

a. Communalities - This is the proportion of each variable's variance that can be explained by the factors (e.g., the underlying latent continua). It is also noted as h2 and can be defined as the sum of squared factor loadings for the variables. b. Initial - With principal factor axis factoring, the initial values on the diagonal of the correlation matrix are determined by the squared multiple correlation of the variable with the other variables. c. Extraction - The values in this column indicate the proportion of each variable's variance that can be explained by the retained factors. Variables with high values are well represented in the common factor space, while variables with low values are not well represented. (In this example, we don't have any particularly low values.) They are the reproduced variances from the factors that you have extracted. You can find these values on the diagonal of the reproduced correlation matrix.

45

Total Variance Explained Compo nent Extraction Sums of Squared Loadings % of Variance 25.738 16.268 11.355 7.409 6.541 6.433 Cumulative % 25.738 42.006 53.361 60.770 67.311 73.744 Rotation Sums of Squared Loadings % of Variance 15.475 14.486 14.071 11.933 9.898 7.882 Cumulative % 15.475 29.961 44.032 55.964 65.862 73.744

Initial Eigenvalues % of Varianc Cumulativ Total e e% 4.376 2.765 1.930 1.260 1.112 1.094 .736 .689 .634 .519 .466 .407 .290 .246 .215 .152 .108 25.738 16.268 11.355 7.409 6.541 6.433 4.329 4.055 3.728 3.054 2.743 2.396 1.705 1.446 1.266 .895 .637 25.738 42.006 53.361 60.770 67.311 73.744 78.073 82.129 85.857 88.911 91.654 94.050 95.755 97.201 98.468 99.363 100.000

Total 4.376 2.765 1.930 1.260 1.112 1.094

Total 2.631 2.463 2.392 2.029 1.683 1.340

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Extraction Method: Principal Component Analysis.

a. Factor - The initial number of factors is the same as the number of variables used in the factor analysis. However, not all 17 factors will be retained. In this example, only the first three factors will be retained (as we requested). b. Initial Eigenvalues - Eigenvalues are the variances of the factors. Because we conducted our factor analysis on the correlation matrix, the variables are standardized, which means that the each variable has a variance of 1, and the total variance is equal to the number of variables used in the analysis, in this case, 17. c. Total - This column contains the eigenvalues. The first factor will always account for the most variance (and hence have the highest eigenvalue), and the next factor will account for as much of the left over variance as it can, and so on. Hence, each successive factor will account for less and less variance. d. % of Variance - This column contains the percent of total variance accounted for by each factor.

46

e. Cumulative % - This column contains the cumulative percentage of variance accounted for by the current and all preceding factors. For example, the 6 row shows a value of 73.74. This means that the first 6 factors together account for 73.74% of the total variance. f. Extraction Sums of Squared Loadings - The number of rows in this panel of the table correspond to the number of factors retained. In this example, we requested that three factors be retained, so there are three rows, one for each retained factor. The values in this panel of the table are calculated in the same way as the values in the left panel, except that here the values are based on the common variance. The values in this panel of the table will always be lower than the values in the left panel of the table, because they are based on the common variance, which is always smaller than the total variance. g. Rotation Sums of Squared Loadings - The values in this panel of the table represent the distribution of the variance after the varimax rotation. Varimax rotation tries to maximize the variance of each of the factors, so the total amount of variance accounted for is redistributed over the three extracted factors.

Total Variance Explained Rotation Sums of Squared Loadings Factor 1 2 3 4 5 6 Total 2.321 2.216 1.788 1.707 1.366 % of Variance 13.651 13.034 10.520 10.044 8.037 Cumulative % 13.651 26.686 37.206 47.249 55.286

.944 5.555 60.841 Extraction Method: Principal Axis Factoring.

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Reproduced Correlations

HL EZY 2 UNDRSTND Reproduced Correlation HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR Residual(a) HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR .040 -.082 .096 -.062 .014 -.058 .035 -.034 -.016 .019 -.130 .080 -.084 .099 -.166 -.068 .675(b) .322 .448 -.002 .319 .150 .176 .167 .167 .111 -.122 .208 -.342 .114 -.384 .265 .259

MORTG PRCS .322 .798(b) .667 .329 .456 .074 .670 .316 .217 -.035 -.091 -.060 -.312 .115 -.295 -.166 .318 .040

EMI FIX .448 .667 .702(b) .416 .608 .303 .535 .304 .172 .017 -.100 -.090 -.389 -.007 -.415 .046 .372 -.082 -.103

SRVC RCVD -.002 .329 .416 .778(b) .543 .578 .505 .420 .299 .276 .266 -.281 -.087 -.078 -.022 .212 .034 .096 -.045 .000

INTRST CHRG BY BNK .319 .456 .608 .543 .773(b) .427 .357 .338 .201 .185 .085 -.297 -.402 -.291 -.493 .093 .475 -.062 -.051 .031 -.044

HL FVOR .150 .074 .303 .578 .427 .800(b) .079 .057 .006 .039 .121 .094 .097 .148 -.044 .219 .124 .014 .069 -.109 -.134 -.079

-.103 -.045 -.051 .069 -.062 -.017 -.044 .000 .096 -.073 .014 -.005 -.038 .033 -.038 .000 .031 -.109 -.018 -.133 -.003 .019 .079 .037 -.002 -.006 .019 .038 -.062

-.044 -.134 -.030 -.028 -.001 -.016 -.010 .073 -.002 -.057 .025 -.028 .009 -.079 -.014 .030 -.073 .044 -.027 .068 -.025 .054 .050 -.013 -.079

.014 .054 .058 .002 -.035 -.089 -.045 .006 -.004 -.062 .016

Contd..

48

DOC PRCZE R Reproduced Correlation HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR Residual(a) HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR -0.064 0.034 0.014 -0.038 0.058 0.042 -0.046 -0.036 0.055 0.084 0.176 0.67 0.535 0.505 0.357 0.079 .851(b) 0.579 0.469 0.277 0.111 -0.231 -0.282 0.052 -0.029 0.154 -0.071 -0.058 -0.062 -0.018 -0.03 -0.014 0.014

PRCZIN G FEES 0.167 0.316 0.304 0.42 0.338 0.057 0.579 .638(b) 0.622 0.6 0.366 -0.277 -0.261 -0.125 -0.032 0.334 -0.087 0.035 -0.017 -0.133 -0.028 0.03 0.054 -0.064

SENCTIO N PRCZER 0.167 0.217 0.172 0.299 0.201 0.006 0.469 0.622 .761(b) 0.741 0.573 -0.044 -0.061 0.096 0.09 0.242 -0.076 -0.034 -0.044 -0.003 -0.001 -0.073 0.058 0.034 -0.076

SENCTIO N TIME 0.111 -0.035 0.017 0.276 0.185 0.039 0.277 0.6 0.741 .839(b) 0.635 -0.132 -0.062 -0.072 0.094 0.384 -0.13 -0.016 0 0.019 -0.016 0.044 0.002 0.014 -0.08 -0.045

4 CLZR CHRGD -0.122 -0.091 -0.1 0.266 0.085 0.121 0.111 0.366 0.573 0.635 .683(b) 0.032 0.243 0.123 0.226 0.036 -0.03 0.019 0.096 0.079 -0.01 -0.027 -0.035 -0.038 -0.066 -0.14 -0.084

ONLINE 0.208 -0.06 -0.09 -0.281 -0.297 0.094 -0.231 -0.277 -0.044 -0.132 0.032 .713(b) 0.4 0.686 0.186 -0.177 0.043 -0.13 -0.073 0.037 0.073 0.068 -0.089 0.058 0.003 -0.033 -0.029 0.034

-0.076 -0.08 -0.066 0.003 0.019 0.045 -0.027 -0.079 -0.005 -0.045 -0.14 -0.033 0.05 -0.03 -0.017 0.021 0.087

-0.084 -0.029 -0.005 0.042 0.026 -0.032 -0.013 0.034 -0.091 -0.034 -0.03 0.038 -0.124

-0.119 -0.106 0.022 0.031 -0.001

Contd

49

INTRST AS INCME LVL Reproduced Correlation HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR Residual(a) HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR -0.032 -0.204 0.06 -0.017 -0.342 -0.312 -0.389 -0.087 -0.402 0.097 -0.282 -0.261 -0.061 -0.062 0.243 0.4 .609(b) 0.47 0.471 -0.259 -0.177 0.08 0.014 -0.002 -0.002 -0.025 -0.045 0.042 0.019 0.05 -0.005 -0.091 -0.119

SIZ WHL NNP EMI 0.114 0.115 -0.007 -0.078 -0.291 0.148 0.052 -0.125 0.096 -0.072 0.123 0.686 0.47 .815(b) 0.346 -0.193 -0.086 -0.084 -0.005 -0.006 -0.057 0.054 0.006 -0.046 0.045 -0.03 0.042 -0.034 -0.106 -0.032

FCLTY PRVD BANK -0.384 -0.295 -0.415 -0.022 -0.493 -0.044 -0.029 -0.032 0.09 0.094 0.226 0.186 0.471 0.346 .604(b) 0.028 -0.517 0.099 -0.038 0.019 0.025 0.05 -0.004 -0.036 -0.027 -0.017 0.026 -0.03 0.022 -0.204 -0.054

PUBLIC SECTOR 0.265 -0.166 0.046 0.212 0.093 0.219 0.154 0.334 0.242 0.384 0.036 -0.177 -0.259 -0.193 0.028 .783(b) -0.391 -0.166 0.033 0.038 -0.028 -0.013 -0.062 0.055 -0.079 0.021 -0.032 0.038 0.031 0.06 0.03 -0.071

PRIVATE SECTOR 0.259 0.318 0.372 0.034 0.475 0.124 -0.071 -0.087 -0.076 -0.13 -0.03 0.043 -0.177 -0.086 -0.517 -0.391 .714(b) -0.068 -0.038 -0.062 0.009 -0.079 0.016 0.084 -0.005 0.087 -0.013 -0.124 -0.001 -0.017 0.004 0.122 0.125

-0.054 0.03 0.004 -0.071 0.122

0.125

Extraction Method: Principal Component Analysis. a Residuals are computed between observed and reproduced correlations. There are 53 (38.0%) nonredundant residuals with absolute values greater than 0.05. b Reproduced communalities

50

a. Reproduced Correlations - This table contains two tables, the reproduced correlations in the top part of the table, and the residuals in the bottom part of the table. b. Reproduced Correlation - The reproduced correlation matrix is the correlation matrix based on the extracted factors. You want the values in the reproduced matrix to be as close to the values in the original correlation matrix as possible. This means that the residual matrix, which contains the differences between the original and the reproduced matrix to be close to zero. If the reproduced matrix is very similar to the original correlation matrix, then you know that the factors that were extracted accounted for a great deal of the variance in the original correlation matrix, and these few factors do a good job of representing the original data. The numbers on the diagonal of the reproduced correlation matrix are presented in the Communalities table in the column labeled Extracted. c. Residual - As noted in the first footnote provided by SPSS (a.), the values in this part of the table represent the differences between original correlations (shown in the correlation table at the beginning of the output) and the reproduced correlations, which are shown in the top part of this table.
Factor Transformation Matrix Factor 1 2 3 4 5 6 1 .457 .736 -.019 -.076 .443 2 .512 -.603 .105 -.060 .566 3 .529 -.030 .308 -.509 -.601 4 -.282 .180 .874 -.019 .177 5 .386 .010 .207 .855 -.276 -.031 6 .141 .247 -.293 -.003 -.126 .904

-.217 .198 -.060 .303 Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization.

a. Factor Transformation Matrix - This is the matrix by which you multiply the unrotated factor matrix to get the rotated factor matrix.

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Rotated Factor Matrix(a) Factor 1 HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR .058 .025 .015 .250 .178 .035 .277 .549 .748 .919 .605 -.075 .016 .041 .133 .198 -.087 2 .503 .464 .603 .012 .637 .148 .101 .104 .034 .011 -.167 -.016 -.453 -.114 -.615 .001 .556 3 .133 .661 .432 .325 .148 -.005 .857 .361 .282 -.016 -.038 -.131 -.195 .131 -.034 .012 -.028 4 .115 .035 -.016 -.195 -.270 .142 -.095 -.193 .038 -.084 .080 .659 .409 .909 .231 -.141 -.008 5 .025 .095 .293 .771 .477 .593 .143 .123 .021 .030 .168 -.042 .063 .039 .000 .125 .089 6 .157 -.172 .038 .018 -.051 .090 .117 .155 .110 .197 -.078 -.046 -.183 -.058 .014 .804 -.312

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations. Factor Matrix(a) Factor 1 HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR .416 .639 .701 .582 .780 .293 .662 .568 .435 .384 .106 -.321 -.498 -.265 -.424 .262 .302 2 -.181 -.208 -.242 .298 -.184 .061 .259 .431 .608 .744 .577 -.001 .249 .199 .461 .322 -.466 3 .185 .292 .225 .124 .043 .312 .086 -.102 .088 -.112 .124 .565 .315 .818 .087 -.284 .214 4 -.162 -.261 -.034 .485 .273 .489 -.250 -.127 -.238 -.132 .046 -.120 .139 -.166 .025 .090 .034 5 .311 -.231 .019 -.165 -.070 .152 -.217 -.024 -.036 .084 -.141 .198 -.107 .123 -.054 .521 -.148 6 -.065 .216 .097 .199 -.173 .038 .464 .013 -.177 -.393 -.240 -.074 -.022 .144 .168 .142 -.323

Extraction Method: Alpha Factoring. a 6 factors extracted. 20 iterations required.

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a. Rotated Factor Matrix - This table contains the rotated factor loadings (factor pattern matrix), which represent both how the variables are weighted for each f actor but also the correlation between the variables and the factor. Because these are correlations, possible values range from -1 to +1. On the/format subcommand, we used the option blank(.30), which tells SPSS not to print any of the correlations that are .3 or less. This makes the output easier to read by removing the clutter of low correlations that are probably not meaningful anyway. For orthogonal rotations, such as varimax, the factor pattern and factor structure matrices are the same. b. Factor - The columns under this heading are the rotated factors that have been extracted. As you can see by the footnote provided by SPSS (a.), six factors were extracted (the six factors that we requested).

Factor Score Coefficient Matrix Factor HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR 1 -.007 .007 -.044 -.039 .059 -.036 -.051 .079 .205 .848 .129 .003 .030 .036 .013 -.193 .041 2 .200 .204 .303 -.408 .461 .023 -.312 -.009 .016 .180 -.076 .088 -.168 .099 -.261 .083 .221 3 -.031 .245 .031 .015 -.213 -.092 .920 .069 .059 -.311 -.043 -.057 -.022 .059 .055 -.065 -.078 4 .082 .038 .090 -.128 .000 .072 -.130 -.039 .029 .019 .001 .181 .048 .895 -.006 .098 .031 5 -.052 -.153 .037 .927 .306 .263 -.235 -.034 -.114 -.218 .073 .014 .117 .140 .076 .093 -.014 6 .127 -.180 .102 -.151 -.100 .081 .089 .006 -.064 -.063 -.158 .051 -.129 .137 -.040 1.080 -.160

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. Factor Scores Method: Bartlett.

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Factor Transformation Matrix Factor 1 2 3 4 5 6 1 .350 .768 .023 -.192 -.085 -.493 2 .631 -.561 .167 -.170 .266 -.399 3 .498 .078 .160 -.375 -.331 .686 4 -.298 .109 .877 -.208 .294 .029 5 .350 .128 .309 .866 -.013 .126 6 .140 .246 -.286 -.027 .852 .334

Extraction Method: Alpha Factoring. Rotation Method: Varimax with Kaiser Normalization.

a. Factor Score Coefficient Matrix - This is the factor weight matrix and is used to compute the factor scores.
Factor Score Coefficient Matrix Factor 1 HL EZY 2 UNDRSTND MORTG PRCS EMI FIX SRVC RCVD INTRST CHRG BY BNK HL FVOR DOC PRCZER PRCZING FEES SENCTION PRCZER SENCTION TIME 4 CLZR CHRGD ONLINE INTRST AS INCME LVL SIZ WHL NNP EMI FCLTY PRVD BANK PUBLIC SECTOR PRIVATE SECTOR -.039 .033 -.047 -.034 .062 -.062 -.055 .063 .225 .832 .150 .012 .054 .029 .012 -.178 .088 2 .274 .203 .292 -.370 .379 .021 -.332 -.003 .029 .198 -.110 .126 -.187 .074 -.257 .094 .245 3 -.049 .296 .041 .039 -.190 -.121 .865 .084 .055 -.324 -.030 -.074 -.026 .073 .062 -.060 -.103 4 .135 .042 .094 -.132 -.050 .086 -.127 -.033 .041 .037 -.016 .223 .032 .861 -.007 .087 .022 5 -.070 -.198 .025 .825 .371 .372 -.193 -.036 -.121 -.221 .083 -.008 .135 .141 .073 .097 -.019 6 .307 -.285 .147 -.127 -.192 .170 .096 .088 -.114 .018 -.270 .066 -.245 .139 -.041 .949 -.357

Extraction Method: Alpha Factoring. Rotation Method: Varimax with Kaiser Normalization. Factor Scores Method: Bartlett.

Discussion
Factor analysis helps us to identify the underlying dimensions, or factors, that explain the correlations among a set of variables. This is exactly what our study tries to capture. This study aims to factorize the categories of decisions that a customers takes while seeking home loan from Banks . Here we do not aim to reduce variables for any further multivariate analysis.

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Scree Plot
5 4

Eigenvalue

3 2 1 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Component Number
Interpretation of Results
The null hypothesis is that the population correlation matrix is an identity matrix rejected by Bartletts test of sphericity. Thus factor analysis may be considered as an appropriate technique for analyzing the correlation matrix The tables showed above shows the application of principle component analysis. In communalities tables it can be seen that communality for each variables between1 to 17 is unity as unities were inserted in the diagonal of the correlation matrix. The scree plot shows the Eigen value for each 17 components. The Eigen value for the factors is expected in decreasing order of magnitude as we go from factor 1 to 17. The Eigen value for the factor indicates the total variance attributed to that factor. Eigen values of these factors should be greater than one to be acceptable. The total variance explained by the extracted 6 factors is close to 61% which is acceptable. But the Eigen value of factors 5 and 6 are less than 1 but close to one. Hence we are taking them into consideration also. Factor 1 accounts for 13.62% of total variance Factor 2 accounts for 12.89 % of total variance Factor 3 accounts for 10.67 % of total variance Factor 4 accounts for 10.01% of total variance Factor 5 accounts for 7.87% of total variance Factor 6 accounts for 5.04% of total variance

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In component score matrix: 1) factor 1 has high coefficient for variables speed and length of time for processing an application accessibility of banks employees. Document requirements are thoroughly explained Mortgage process is thoroughly explained. Responsiveness of banks. Promptness of employees at bank Home Finance Accuracy of paper work done If these variables are observed they are centered on the category of decision on the promptness of Banks employees and can be safely labeled as factor promptness in banks. This factor explains 25.73% of variance. This suggests that while selecting a home loan institution the promptness at Banks is the major factor that drives the decision making of prospective customers. 2) Factor 2 has high coefficient for variables Courtesy at banks. Fairness of treatment received from banks Overall satisfaction Recommend to a friend If these variables are observed they are centered on the category of satisfaction with the service provided by Banks and can be safely labeled as factor satisfaction. This suggests when past and existing customers seek any type of home loan in the near future they are likely to approach Banks. 3) Factor 3 has high coefficient for variables Documentation requirements are minimal. Application status If these variables are observed they are centered on the category of decision related to documentation requirement and status of an application and can be safely labeled as factor Documentation requirement. The statistics reveal that we got negative feedback from the customer. This is the are where Banks needs to concentrate upon to excel in the highly competitive and growing home loan market. 4) Factor 4 has high coefficient for the variable Easiness of application form This factor contains just one variable and that is easiness to understand the application form and can safely labeled as factor Application

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FINDINGS & SUGGESTIONS Among the various loans offered the researcher found that most of the customer availed

home loan whereas the takers for Mortgages and Housing loan are relatively less i.e. 44 percentages have availed home loan. 31 percentages are auto loan and 16 percentages are of consumer durable loan respectively. 4 percentages are of personal loan and 2 percentages are of mortgages respectively. Hence it is recommended for the company to aggressively

advertise these loan facilities in both newspapers and television channels so that many people may be aware of the same. 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.

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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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.

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BIBLIOGRAPHY
BOOK REFERENCES: I. II. III. S.P GUPTA, Statistical Publications,2002 Methods, New Delhi, Sultan Chand & Sons

KOTLER PHILIP, Marketing Management, New Delhi, Prentice-Hall of India Pvt.Ltd.,1971 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. III. IV. V. www.icici/india.com www.sbi.co.in www.hdfc/india.com www.google.co.in www.citifinancial.co.in

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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. CONSUMER PERCEPTION ON HOME LOAN
Share your views by putting a mark in the boxes against each question. To maintain confidentiality. How satisfied are you, about Home Loan???

Name: Age: Qualification: Cell No:

Profession: Place: Date: Mail ID:

1- Strongly Agree, 2- Agree, 3-Neutral, 4- Disagree, 5-Strongly Disagree Sr. Particulars 1 2 3 4 5 No. 1 The application form of Home Loan is easy to understand. The mortgage process has been explained thoroughly. 2 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? 11 How do you rate the Fore Closure Charges of Bank? 12 How do you rate when loan sanctioning is going online? 13 Do you think the interest charged by bank should be different on the basis of income level? 14 Seize of asset facility by bank is the right step, in case of nonpayment of EMI? 15 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? Anything else you would like to share:-

Thanks for your valuable inputs.

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