Swetha.et.

al /Trends in Finance and Economics, 2(2) June 2024, 54-60

Trends in Finance and Economics

Vol: 2(2), June 2024

REST Publisher; ISSN: 2583-9721

Website: https://restpublisher.com/journals/tfe/

DOI: https://doi.org/10.46632/tfe/2/2/8

A Study on Home Loans with Reference To HDFC

*Gangapuram Srilatha, G. Swetha
Aristotle PG College, Hyderabad, Telangana, India.
*Corresponding Author Email: [email protected]

Abstract. In the era of growing importance of financial status, there is an increased importance for various
financial institutions which provide such loans. Home is a necessity to all human beings and owning a home is
a dream for everyone. Earlier only a few people had the privilege to have an own home but now with the
availability of home loans provided by banks many people’s dreams has come true. These are loans which are
provided either to buy an already built ready to occupy a home or a flat or to construct a home.
Keywords: Financial Institutions, financial status, Bank loans

1. INTRODUCTION
Home is an integral part of a human being, who since his childhood, dreams to have living space of his own. Once in
a lifetime investment requires loan to do it and that is how the home loan comes into scheme of things. Buying a home
is dream for everyone. Due to the rising price of properties, it has almost become impossible for an average earning
person to buy a home through lump sum payment. Therefore, the concept of home loan has come into existence. There
are plethora of housing finance institutions and banks both in public and private sector which offer home loans.
Choosing one institution and one offer for home loan amidst the thousands available options have become a very
complex task in our country. Apart from this, there are intricate business jargons and technicalities that make this job
more tough and difficult. Through this study, I propose to identify the critical factors impacting the growth and
distinguishing the growth pattern in home loan portfolio particularly in public sector banks in India.

2. REVIEW OF LITERATURE

Sundram K.V. (2021),1 A study titled "A study on home finance with particular reference to co-operative home in
Tiruchiraplli District" by Sundram K.V. with the objective of testing co-operative home finance for home
constructions. The study was completed in the year 1991 and was submitted to the Bharathidasan University, Tiruchi.
The data for the study were collected from the borrowers of co-operative home loans and also secondary data from
cooperative home finance societies. The sample consisted of 300 borrowers of co-operative home loans. He concluded
that loan recovery from borrowers is not satisfactory and also suggested that co-operative home finance institutions
must provide additional services in addition to loan lending.

3. OBJECTIVES OF STUDY

1. The main objective of this study is to know the Customers perceptions about home loans of HDFC BANK
LTD housing development finance corporation LTD.
2. To study about the loan policy, credit evaluation and supervision of loans and advances at HDFC BANK
LTD.
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3. To study the satisfaction level of customers about home loans. HDFC BANK LTD.
4. To study the problems faced by customers in obtaining the home loans. HDFC BANK LTD.

Scope Of Study
1. Company has undergone rapid changes in the past 5 years due to many policy decisions relating to capital
markets, banking sector & licensing policy.

Research Methodology

1. Primary Data
A survey will be conducted to get the primary information. It is the data which is collected directly that is
for the first time in my project I will be used: Questionnaire.
2. Secondary Data
For the secondary data, the pamphlets of various schemes from different banks have been obtained.
3. SAMPLE SIZE
The study is conducted on a sample of 200 respondents.

Limitations Of the Study

1. The study was conducted with the available data and the analysis made on it.
2. The study is limited to the home loans schemes under HDFC BANK LTD.
3. Due to the limited period of study, it may not be detailed.
4. Lack of expertise being a trainee in analyzing the data.

4. DATA ANALYSIS AND INTERPRETATION

The analysis is based on the responses given by customers through questionnaires.

TABLE 1. Age Group of Surveyed Respondents
Age group No. of Respondents
18 - 25 years 70
26 - 35 years 60
36 - 49 years 46
50 - 60 years 20
More than 60 years 4

Analysis: - From the chart above we find that 47% of the respondents fall in the age group of 18 – 25 years, 25% fall
in the age group of 26 – 35 years and 17% fall in the age group of 36 – 49 years. Therefore most of the respondents
are relatively young (below 26 years of age). and 6% respondent’s age are 50-60 years, and 2% respondent’s age are
60 to above years.

TABLE 2. Gender Classification of Surveyed Respondents

Sr. No. Category No. of Respondents Percentage
1 Married 140 70%
2 Unmarried 60 30%
Total 200 100%

Interpretation: From the above graph and table, we can understand that
1. 70% respondents are married.
2. 30% respondents are unmarried.

TABLE 3. Educational qualification of respondent’s

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Sr. No. Category No. of Respondents Percentage

1 Undergraduate 50 25%
2 Graduate 80 40%
3 Postgraduate 70 35%
Total 200 100%

Interpretation: From the above graph and table, we can understand that
1. 25% respondents are undergraduate.
2. 40% respondents are Graduate.
3. 35% respondents are Post graduate.
TABLE 4. Number Of years Are You in India?
Sr. No. Category No. of Respondents Percentage
1 Less than five years 78 39%
2 More than five years 122 61%
Total 200 100%

Interpretation: From the above graph and table, we can understand that
1. 39% respondents are in India is less than five years.
2. 61% respondents are in India is more than five years.

TABLE 5. Customer Profile of Surveyed Respondents

Customer profile No. of respondents
Student 7

Housewife 5
Working Professional 91
Business 49
Self Employed 24
Government service employee 24

Interpretation: From the above graph and table, we can understand that 51% of the respondents are working
professionals, 22% are into business and 11% are self-employed, 11% of the respondents are government service
employee and 3% of the respondents are student and 2% of the respondents are housewife.

TABLE 6. Annual household income?

Sr. No. Category No. of Respondents Percentage
1 Less than 2 lacs 98 49%
2 Between 2 to 5 lacs 62 31%
3 Between 5to 8lacs 30 15%
4 More than 8 lacs 10 5%
Total 200 100%

Interpretation: From the above graph and table, we can understand that
1. 49% respondent’s annual household income is less than 2 lacs.
2. 31% respondent’s annual household income is between 2 to 5 lacs.
3. 15% respondent’s annual household income is between 5 to 8 lacs.
4. 5% respondent’s annual household income is more than 8 lacs.

TABLE 7. Do you know about HDFC housing development finance corporation LTD?
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Category No. of Respondents

Yes 164
No 36

Interpretation: - From the above graph and table, we can understand that
1. 91% respondents are known about HDFC LTD
2. 9% respondents are not known about HDFC LTD

TABLE 8. Reasons for getting the home financed.

Sr.No. Number of Reasons No of costumers
a. Non-availability of funds 56
b. Reluctancy to pay cash in one go 50
c. Tax benefit 40
d. Any other 54

Interpretation: To interpret the response of the questions, the figures shows that most of the customers find the
problem in availability of funds i.e. 56% and very a smaller number of customers found problem in paying cash in
one go is 50%, customers get housing loan for tax benefits is 40%. This was the expected response because many
people find a problem of availability of funds which works as an obstacle in owning a dream home. In today's life,
people hardly earn both means and ends of life and they don't have much of money to buy a home or a land to construct
house because of cost of property.

TABLE 9. From where you have got your home financed

Name of Banks / company No of customers
HDFC LTD 75
Punjab National Bank 35
Standard Chartered Bank 27
HDFC BANK 40
Any other 23

Interpretation: The analysis showed that many customers prefer HDFC LTD as compared to others. The data shows
that 27% of customers took loan from Standard Chartered Bank, 40% of customers from HDFC BANK, 35%
Customers took loan from Punjab National Bank, 75% of customers took loan from HDFC LTD and a 23% of
customers fall under the category of 'Any other' which included State Bank of India, Canara Bank, Punjab and Sind
Bank, etc. The data shows that most people prefer HDFC LTD compared to public sector banks and other private
banks. This is because of the extra services provided by HDFC LTD. However, there is less difference in figures of
HDFC Bank and Punjab National Bank. But there is considerable difference in figures of the two private sector banks
i.e. HDFC bank and Standard Chartered Bank. As HDFC is the market leader in the home loans sector. This may be
the reason for such difference in Standard Chartered Bank's percentage and HDFC Bank's percentage. Another reason
for specialized services in home loans, more amounts of loans, and efficient query handling.

TABLE 10. Sources of information about Home Loans Scheme

Sources of information No of customers
Newspapers 69
Magazines 36
Banners/Hoardings/Pamphlets 31
Word of mouth 40
Any other source 24

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Interpretation: The data shows that around 20% of customers got information from source of 'Word of Mouth' which
includes information from friends, relatives, colleagues etc. 49% of customers got information from newspapers, only
16% of customers from magazines and 4% of customers got information about home loans schemes under 'Any other
source' and 11% through Banners/ Hoardings/Pamphlets.

TABLE 11. Opinion about the services of HDFC LTD

Services of HDFC LTD Percentage of customers agreeing
Strongly Agree Neutral Disagree Strongly
agree disagree
a. Professionally managed 86% 10% 4% - -
b. Reliable & transparent 67% 33% - - -
c. Socially responsible 75% 10% 15% 4% -
d. Customer care 20% 68% 8% - -
e. Query handling 20% 76% 4% - -

Interpretation: Customers from HDFC LTD are quite satisfied with their services like query handling and customers’
social responsibility of banks towards customers and professionally managed services. They don't give so good
response to reliability and transparency services of banks. So, the customer satisfaction level for HDFC LTD services
is lightly satisfied.

TABLE 12. Opinion of customers about home loan schemes

Services of HDFC LTD Percentage of customers agreeing
Strongly Agree Neutral Disagree Strongly
agree disagree
a. Amount of loan 60% 35% 5% - -
b. Legal formalities 42% 45% 14% - -
c. Interest rates 32% 56% 12% - -
d. Repayment options 26% 64% 10% - -
e. Security demanded 20% 32% 48% - -
f. Installments 55% 40% 5% - -
g. Services 45% 30% 18% 6% 1%
h. Processing for sanction of loan 55% 24% 18% 3% -

Interpretation: The analysis shows that the customers of HDFC LTD gave 60 percent of the amount of loan and legal
proceedings, 56% to interest rates, 45% to proceedings and services, 55% to installments. So, the customer of HDFC
LTD didn't give a response regarding the services of the bank / company except to the amount of loan and legal
formalities.

TABLE 13. Data Gives Preference of Respondents of Home Loans Companies and Banks

Company’s name No.of respondents (%)

Hdfc ltd 78 78
Standard chartered bank 2 2
Hdfc bank 10 10
Pnb 7 7
Sbi 3 3
Total 100 100

Interpretation: From the table and graph above it can be seen that: 78% of the people contacted prefer HDFC LTD
to any other and therefore it is ranked no.1 by that percentage of respondents.

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Findings
From the chart above we find that 47% of the respondents fall in the age group of 18 – 25 years, 25% fall in the age
group of 26 – 35 years and 17% fall in the age group of 36 – 49 years. Therefore, most of the respondents are relatively
young (below 26 years of age). and 6% respondent’s age are 50-60 years, and 2% respondent’s age are 60 to above
years. From the above graph and table, we can understand that.
1. 70% of respondents are married.
2. 30% of respondents are unmarried.
From the above graph and table, we can understand that.
1. 25% of respondents are undergraduates.
2. 40% respondents are Graduate.
3. 35% respondents are Post graduate.
From the above graph and table, we can understand that.
1. 39% respondents are in India is less than five years.
2. 61% respondents are in India is more than five years.
From the above graph and table, we can understand that. 51% of the respondents are working professionals, 22% are
into business and 11% are self-employed, 11% of the respondents are government service employee and 3% of the
respondents are student and 2% of the respondents are housewife.
From the above graph and table, we can understand that.
1. 49% of respondents’ annual household income is less than 2 lacs.
2. 31% of respondents’ annual household income is between 2 to 5 lacs.
3. 15% of respondents’ annual household income is between 5 to 8 lacs.
4. 5% of respondents’ annual household income is more than 8 lacs.

From the above graph and table, we can understand that.

1. 91% respondents are known about HDFC LTD
2. 9% respondents are not known about HDFC LTD

In today's life, people hardly earn both means and ends of life and they don't have much money to buy a home or land
to construct house because of the cost of property.

Recommendations And Suggestions

The analysis showed that a large number of customers prefer HDFC LTD as compared to others. The data shows that
27% of customers took loan from Standard Chartered Bank, 40% of customers from HDFC BANK, 35% Customers
took loan from Punjab National Bank, 75% of customers took loan from HDFC LTD and a 23% of customers fall
under the category of 'Any other' which included State Bank of India, Canara Bank, Punjab and Sind Bank, etc.
The data shows that around 20% of customers got information from source of 'Word of Mouth' which includes
information from friends, relatives, colleagues etc. 49% of customers got information from newspapers, only 16% of
customers from magazines and 4% of customers got information about home loans schemes under 'Any other source'
and 11% through Banners/ Hoardings/Pamphlets . Customers from HDFC LTD are quite satisfied with their services
like query handling and customers social responsibility of banks towards customers and professionally managed
services. They don't give so good response to reliability and transparency services of banks. So, the customer
satisfaction level for HDFC LTD services is lightly satisfied. The analysis shows that the customers of HDFC LTD
gave 60 percent of the loan and legal proceedings, 56% to interest rates, 45% to proceedings and services, and 55%
to installments. So, the customer of HDFC LTD didn't give a response regarding the services of the bank / company
except to the amount of loan and legal formalities. From the table and graph above it can be seen that: 78% of the
people contacted prefer HDFC LTD to any other and therefore it is ranked no.1 by that percentage of respondents.

5. CONCLUSION

The underlying motivation of this study has been to contribute toward enriching the already extensive research on
housing affordability presented in the formal literature. In particular, in addition to several supporting objectives, this
book has two main objectives, namely: (i) to review a range of available approaches to the measurement of housing
affordability and (ii) to examine the evidence on housing affordability in Melbourne, Australia, from 2001 to 2010.

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The focus of the latter is on housing affordability in metropolitan areas and not in rural and regional areas where the
issues are somewhat different in nature and scale. The book begins with an exposition in Chapter 2 on the importance
of housing per se. In addition to discussing housing trends, this chapter examines the relevance of housing to
governments at different levels, the emergence of the housing affordability problem, and why housing affordability is
important. Ultimately, the core purpose of this chapter is to enhance understanding of the complexity and importance
of housing in general and housing affordability in particular, and thereby to inform the discussion, to different degrees,
of the other chapters in the book

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