UKA TARSADIA UNIVERSITY

SRIMCA - MBA Programme

SYMBA- Semester 4
Finance Specialization
Winter Project
Subject Code: MN8016
“A Study On Factor Affecting Customer Satisfaction To Wards Home Loan In Private
Bank”

Submitted By : Hinal Prajapati (202304100710022)

Submitted To : Dr. Bhoomi Patel

 About MyMoneyMantra
MyMoneyMantra, founded in 1989 and headquartered in New Delhi, is India's
largest phygital financial services marketplace. It connects borrowers with
lenders and offers real-time applications for Personal Loans, Home Loans, Loans
Against Properties, Business Loans, and Credit Cards.
The company boasts a network of 50 lakh customers, over 100 RBI-recognized
banks and NBFCs, and 2500+ loan specialists who ensure a smooth loan process
from application to disbursal.
MyMoneyMantra employs cutting-edge technology, AI, and ML to help users
compare various loan products online, featuring banks like HDFC, ICICI, SBI,
and more. With over 3,000 employees and 120 offices in 60 cities, it has
originated $4 billion in credit over the past five years, empowering millions of
Indians in personal finance.
 Mission And Vision
Mission : To empower individuals and businesses by providing comprehensive
financial solutions and unparalleled support, ensuring their financial well-being and
enabling sustainable growth. We are committed to delivering exceptional service
through innovation, integrity, and a customer-centric approach.
Vision : To be the foremost financial partner of choice, recognized for our excellence,
innovation, and dedication to our clients' success. We envision a future where
everyone has the financial knowledge, resources, and confidence to achieve their
aspirations and secure their financial futures.
 Services Offered
1.Personal Loan
2.Home Loan
3.Business Loan
4.Loan Against Property
5.Credit Card Service
6.Refinance Home Loan Or Home Loan Balance Transfer
7.Insurances
 About Research Topic
What do we mean by customer satisfaction towards home loan?
Customer satisfaction with a home loan involves their happiness with the entire loan
process. Key factors include:
1.Ease of Application: Simplicity and clarity in applying for the loan.
2.Customer Service: Quality and helpfulness of support from lender's staff.
3.Interest Rates and Fees: Competitiveness of interest rates and fees.
4.Loan Terms and Conditions: Transparency and fairness of loan terms.
5.Approval and Disbursement Time: Speed of loan approval and disbursement.
6.Post-Loan Service: Ongoing support after disbursement, such as managing repayments.
7.Overall Experience: General satisfaction with the entire process.
High customer satisfaction indicates the lender is meeting or exceeding expectations,
leading to a positive experience and fostering loyalty.
 Types Of Home Loan

 Purchase of Apartment: Loans for buying residential apartments, whether under

construction or ready to move in.
 Purchase of Bungalow/Independent House: Loans for purchasing bungalows or
independent houses, either under construction or ready to move in.
 Purchase of Land/Plot: Loans for buying vacant plots for construction, with some
banks requiring construction to begin within a year.
 Home Renovation: Loans for improving or renovating an existing house or
apartment.
 Construction of House: Loans for building a house, requiring municipal
corporation permission and an approved building plan.
 Balance Transfer: Transferring an existing home loan to another lender for better
eligibility criteria and interest rates.
Private Sector Company That Offers Home Loan
1. HDFC Bank
2. ICICI Bank
3. Axis Bank
4. Kotak Mahindra Bank
5. IndusInd Bank
6. Federal Bank
7. Yes Bank
8. RBL Bank (Ratnakar Bank)
9. IDFC First Bank
10. South Indian Bank
11. Tata Capital
12. Bajaj Finance
13. LIC Housing Finance
14. Piramal Capital & Housing Finance
 Procedure for taking Home Loan :

Step 1 : Application form

Step 2 : Personal Discussion
Step 3: Bank's Field Investigation
Step 4: Credit appraisal by the bank and loan sanction
Step 5: Offer Letter
Step 6: Submission of legal documents & legal check
Step 7: Technical / Valuation check
Step 8: Registration of property documents
Step 9: Signing of agreements and submitting post-dated cheques
Step 10: Disbursement
 Factors That Affect Customer Satisfaction Towards Home Loan

 Interest Rates: Competitive rates positively impact monthly repayments.

 Application Process: Clear, simple, and speedy application procedures.
 Customer Service: Responsive, professional support.
 Loan Terms & Flexibility: Flexible repayment options and clear terms.
 Fees & Charges: Transparent and reasonable fees.
 Post-Loan Services: Ongoing support and communication.
 Lender's Reputation: Credibility and positive customer reviews.
 Technological Support: Access to digital services and innovative solutions.
 Customization: Tailored loan products to meet specific needs.
 Marketing & Communication: Clear and effective messaging about loan products.
 “A Study On Factor Affecting Customer Satisfaction To Wards
Home Loan In Private Bank”

• Owning a home is a cherished dream for many, but the financial requirement can
be a major obstacle, especially for middle-class families. To help, many banks
and financial institutions in India offer home loans at competitive interest rates.
• The housing finance sector has grown significantly, with institutions like the
State Bank of India, HDFC, ICICI Home Loans, and others providing various
loan options.
• A home loan, or mortgage, is a sum borrowed to purchase a house, with the
property serving as collateral.
• Leading lenders, such as ICICI Home Loans, are known for their excellent
services and competitive rates. The Reserve Bank of India (RBI) has taken steps
to enhance the flow of credit for home loans, considering the social and economic
conditions and the housing shortage.
Literature Review
 Nairuti S. Chokkas (2015) “A Study On Customer
Satisfaction Towards Home Loan In HDFC Bank In Surat
City.”
Data was collected from 200 HDFC customers using structured questionnaires
and secondary sources.
Various data analysis techniques like graphs and percentages were employed.
Findings revealed several issues: 21% of customers faced a lack of knowledge,
10% had KYC problems, 9% experienced non-refundable issues, 3% faced
procedural delays and non-cooperation, 13% struggled with documentation
processes, 22% had down payment issues, and 22% faced no problems. Most
customers reported difficulties with down payments and lack of knowledge.
 R.Abirami & K.A.Shreenivasan (2016) “A Study Of Customer Satisfaction On Housing
Finance With Respect To Sundaram BNP Paribas Home Finance Ltd.”

The study aimed to understand customer satisfaction with home finance, focusing
on the relationship between loans availed and customer satisfaction, as well as
attractive features from NBFCs. Data was collected via structured questionnaires
from 150 Sundaram BNP Paribas home finance customers in Chennai, including
both self-employed and salaried individuals.
Key findings:
o Speedy Processing: Main reason for choosing the institution.
o Customer Satisfaction: 42% were highly satisfied with loan processing time.
o Dissatisfaction: Issues with processing charges, penalties, and loan recovery
methods.
o Key Influencers: Interest rates, repayment modes, processing time, and loan
recovery processes.
• Cronbach alpha for internal consistency was 0.804, indicating good reliability.
 S. Swadish & Dr. S. T. Surulivel (2017) “A Study On Customer Expectation
And Satisfaction Towards Housing Finance Companies: A Comparative
Study”
This study aimed to understand customer expectations and satisfaction with Dewan Housing
Finance Corporation Ltd. (DHFL). Using a descriptive research design and structured
questionnaires, data was collected from 300 customers, including public servants, private-
sector employees, and self-employed individuals from urban and rural areas.
Key findings:
o Most satisfied customers were aged 30-40, who prefer home loans due to family
commitments.
o In the future, all age groups are expected to approach housing finance companies.
o Major drawbacks were high-interest rates: 9% for salaried individuals and up to 13% for the
self-employed.
o Home loan preferences: 45% of those aged 31-40, 10% aged 20-30, 40% aged 41-50, and
5% aged above 50, for various purposes like purchase, construction, renovation, and plot
loans.
 Satish Manwani, Dr. Neeraj Singh & Dr. Vishal Sood (2019) “ Impact Of
Factor Affecting Customer Satisfaction Towards Home Loan Scheme Of
ICICI : A Robust Analysis”
This study investigates factors influencing customer satisfaction with home loans and
compares ICICI's home loan services. Using a descriptive study and data from 200 clients
in Bhopal, the research employed Reliability Analysis, Factor Analysis, and Regression
Analysis with SPSS-18 and E Views-8 software.
Key findings:
o Customer Satisfaction: Top priority for ICICI Bank.
o Responsiveness: Timely grievance redressing and feedback.
o Credibility, Reliability, Accessibility: Essential for building strong customer reputation.
o Communication and Trustworthiness: Areas for improvement to boost client confidence.
Overall, ICICI prioritizes customer satisfaction by focusing on responsiveness and
reliability.
 Mr.Animesh Singh & Prof. Madhurima Lall (2021) “Impact Of Factors
Affecting Customer Satisfaction Towards Home Loan Scheme Of HDFC And
LIC Housing Finance Ltd: A Robust Analysis”

This study aimed to assess customer satisfaction with housing finance banks in India
and understand why customers preferred HDFC and LIC Housing Finance Ltd. for
home loans. Using both primary data from questionnaires (collected from April 2014
to March 2015) and secondary data from various publications, the study employed the
Statistical Package for Social Sciences (SPSS) for analysis.
Findings:
o ICICI Bank: Emphasized the importance of the SERVAQUL Model for customer
satisfaction.
o Recommendations: Address grey areas to capitalize on the market segment and boost
customer confidence.
The study highlighted key factors driving customer preferences and satisfaction with
home loan services.
 Zahid Ajaz Bhat & Dr. A. Elankumaran(2022) “ Factors Influencing Customer Satisfaction
Towards Housing Loan Processing With Special Reference To NBFCs In Bangalore”

This study aimed to identify factors influencing customer satisfaction with home
loans from NBFCs. Using a descriptive research design and structured
questionnaires, data was collected from 400 respondents in Bangalore. Key findings
include:
o Positive Aspects: Customers appreciated the time taken for loan processing,
knowledge of the first contact, repayment options, and services offered by NBFCs.
o Satisfaction: Many found NBFCs more valuable and a strong alternative to banks.
o Key Influencing Factors: Responsiveness was the most influential factor, while
credibility was the least.
Seven factors were extracted, highlighting the importance of responsiveness in
customer satisfaction with NBFC home loans.
Research Objectives
The major objectives of this research is :
1. To identify the key factors that influence customer satisfaction with home loans
in private banks.
2. To analyze the levels of customer satisfaction based on different demographic
variables such as age, income, occupation, etc.
3. To analyze customer feedback and complaints to identify common issues and
areas for improvement in home loan services.
Research Methodology
 Statement of Problem

This study explores the factors influencing customer satisfaction with home loans
from private banks. It aims to identify borrower challenges during the loan
process and understand how these issues affect overall satisfaction. The research
seeks to uncover key elements that contribute to positive or negative customer
experiences and provides insights to improve home loan services offered by
private banks.
 Research Design

For the study Descriptive Research design has been used because it allows
researchers to systematically describe characteristics and behaviors in their
natural setting. This approach provides a comprehensive understanding of the
current state of satisfaction, identifying patterns and relationships without
manipulating the environment.
 Sources of Data
• There are two types of data in the study:
1) Primary Data
2) Secondary Data
• Primary data are those data which are collected through direct communication
with the respondents or through questionnaire.
• Secondary data are those data which are collected through previous studies,
websites etc.
In this study, primary data has been collected directly from the respondents using a
questionnaire.
 Scope of the study

1. To explore and identify the key factors that influence customer satisfaction with
home loans offered by private banks.
2. Analyzing how different demographic factors (age, income, occupation, etc.)
influence customer satisfaction.
3. Examining how the terms and conditions of home loans (interest rates, repayment
periods, processing fees, etc.) affect customer satisfaction.
 Limitations of the Study

1. The study have a limited sample size or lack representation from diverse
demographics, which can affect the generalizability of the findings.
2. The study might be conducted over a short period, which may not capture long-
term satisfaction levels or changes in customer perceptions over time.
3. To conduct the survey the time limit is very less as the sample size is big.
 Mapping
Research Research Data Collection Data Analysis
Objectives Questions

To identify the key 1. What is the most Questionnaire Reliability analysis

factors that influence important factor that and Validity analysis
customer satisfaction affected your
with home loans in satisfaction with the
private banks. home loan process?
2.What improvement
would you suggest for
the bank to enhance
customer satisfaction
regarding home loan?

To examine how the 1. How would you Questionnaire Reliability analysis

efficiency of loan rate the ease of the and Validity analysis
processing impacts loan application
customer satisfaction. process?
 How satisfied are you
with the documentation
process required for
Home Loan?

To assess the impact of 1. How competitive do Questionnaire Reliability analysis and

interest rates, fees, and you find the interest Validity analysis
other charges on rates offered by your
customer satisfaction. bank for Home Loans?
2. Do you think the
interest rates charged are
reasonable for your loan
amount?

To evaluate how the 1. How satisfied are you Questionnaire Reliability analysis and
repayment terms and with the loan repayment Validity analysis
conditions of home loans options (EMI Plans,
affect customer flexibility, etc.)?
satisfaction. 2. Has the bank provided
you with adequate
flexibility in modifying
loan terms or
restructuring payments?