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Now-a-
days, banking sector acts as the backbone of modern business. Development of
any country mainly depends upon the banking system.
The term bank is either derived from Old Italian word banca or from a
French word banque both mean a Bench or money exchange table. In olden days,
European money lenders or money changers used to display (show) coins of different
countries in big heaps (quantity) on benches or tables for the purpose of lending or
exchanging.
A bank is a financial institution which deals with deposits and advances and
other related services. It receives money from those who want to save in the form of
deposits and it lends money to those who need it.
Bank is defined as an institution for the keeping, landing and
exchanging etc. of money. Economists have also defined a bank highlighting its
various functions. According to some economist, the banker business is to take
the debt of other people to offer his own asset in exchange and thereby create
money.” Thus a bank is an institution that accepts deposits from the public in
terms of advances loans by creating credit. It is different from other financial
institutions in that they cannot create credit though they may be accepting
deposits and making advances.
Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.
Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually
repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of
its customers. It also acts as a custodian of funds of its customers.
Giving Advances
A bank lends out money in the form of loans to those who require it for different
purposes.
Banking Business
A bank's main activity should be to do business of banking which should not be
subsidiary to any other business.
Name Identity
A bank should always add the word "bank" to its name to enable people to know that it is
a bank and that it is dealing in money.
Types of banks:
Commercial banks
Exchange banks
Industrial banks
Agricultural banks
Cooperative banks
Saving banks
Central banks
Banking Industry in India has always revolved around the traditional function of deposits
and credit. Their role had been defined as to assist the overall economic growth with
majority of share being controlled by the Government of India in most of the banks. But
with the process of liberalization, and the technological revolution the banking
industry has also undergone tremendous change in the last 5 years. The market,
Which was largely controlled by the public sector banks, has now been facing stiff
competition not only from foreign players but also from the new generation private sector
banks. The rules of the game have been changing with the RBI introducing new norms to
make banks more accountable and to adopt the practices followed worldwide Most of
the banks have now been trying to function on the concept of a Universal Bank apart from
the traditional functions of a commercial bank, they are taking steps to build themselves into
a one stop financial center wherein all the financial products would be available. Banks
have started catering to the retail segment to improve their deposit portfolio. In order to
have a maximum share in this segment, most of the banks have been introducing new
products. The delivery channels have also been shifted from branches to ATMs, phone
banking, net banking etc. Banks traditionally involved in working capital financing
have started offering consumer loans and housing loans. Some of the banks have started
offering travel loans as well. Retail financing is the other area where the banks have
started to concentrate. The loan formalities too have been relaxed to a great extent and
sanctioning time has been speeded up.
Meaning of Housing Finance
The home is basic unit of society, but the capital required per dwelling is so large
that few individuals can raise it from their own savings. So there is a great need
and scope for the purpose of construction of house.
The terms “Housing Finance” or “Home Loan” means finance for buying or
modifying a property. The different housing loan products could be classified as:-
(h) Converting high interest housing loan to low interest housing loan.
The individual, who is planning to buy a house in India, can apply for home loan,
whether he is “Resident” or No n-resident individual. The individual can apply for
loan even before the selection of the property which is to be purchased. Once an
individual decides the maximum amount that he can put into the property, all
Housing Finance Institution (HFIs) can help to plan his budget by calculating his
“Affordability” which is based on his
Individual or clubbed income.
The loan applicant has an option of having co-applicant to his loan to enhance his
loan eligibility. All HFIs lay down conditions on who can be co- applicants. All
co-owners to the property need to be co-applicants to the loan necessarily. But
any minor cannot be co-applicant as he is not eligible to enter into contract as per
law. HFIs do not permit friends or relatives who are not blood relatives to take
property jointly. Income of co-applicants as decided by HFIs can be clubbed
together to get higher loan eligibility.
The following are the general terms and conditions applicable to the basic housing
loan product only. These are likely to change with respect to different types of
housing loans.
4. The total monthly outflow towards all the loans that applicant has
availed of including current loan is normally restricted to 50 percent of applicants
monthly gross income. This is known as the Fixed Obligation to Income Ratio
(FOIR).
8. Most HFIs have a team of civil engineers to visit the site to get a
technical report on the quality of construction and compliance with the local laws
before they disburse the loan.
9. Most HFIs have a panel of lawyers who go through applicant’s
property documents to ensure that the documents are clear and are not mis-
represented.
11. The disbursement in most cases, favors the builder or the seller or
the society or the development authority as the case may be. The disbursement
does come in applicant’s favors only in special circumstances.
12. An applicant can repay the loan either through deduction against
salary, postdated cheques, standing instruction or by cash or demand draft (DD).
The different kinds of charges applicable to home loans are listed below, but all of
these charges may or may not levy by all HFIs. These charges are broadly
classified into two categories.
CHARGES
RE-DISBURSEMENT POST –
CHARGES DISBURSEMENT
1 Processing CHARGES
. Fees
2 Administrativ Cheque
1 Bounce
. e Fees .
3 Rate of Charges
. Interest
4 Legal 2 Del
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5 Technical Cha
. Charges rges
6 Stamp Duty 3 Add
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Registration al
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Charges 4 Inci
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7 Personal 5 Prep
. Guarantee . aym
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Charges 6 PD
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A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Cha
rges
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Processing Charges:
This is a charge that is levied by most HFIs to cover the cost that they incur on the
processing of loan application. This has to be paid at the time of submission of the
application form. Most HFIs refund this fee if loan application is rejected. It is
normally charged as a percentage of loan amount sanctioned or it may be charged
as a flat fees based on loan amount. In case of excess fees corresponding to loan,
it can be adjusted with subsequent charges which are to be paid by applicant.
Administrative fees:This charge is based on percentage on the loan amount
sanctioned. It is collected by the HFI for the maintenance of customer’s records,
issuing interest certificates, legal charges, technical charges etc. through the
tenure of loan. It is to be paid after acceptance of offer letter given by HFI.
Rate of Interest:
interest, “Fixed rate of interest”, and “Floating r ate of interest”. Applicant can opt
egal Charges:
Some HFIs levy legal charges that they incur on getting property document vetted
by their panel of lawyer.
Technical Charges:
This charge is levied by some HFIs to meet their expenses on the technical site
visits to the property.
Stamp Duty and Registration Charges:
These charges are levied by HFIs who demand for guarantee. Since the personal
guarantee provided by an applicant is to be stamped, so these charges are to be
paid by applicant.
Cheque Bounce Charges:
In case the cheque through which an applicant is making payment to HFI gets
dishonored, then some minimum charges are levied by bank. And these charges
are to be recovered by an applicant.
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In case of delay of installment beyond due date. HFIs charge these charges to an
applicant.
Additional Charges:
These are levied as a percentage on the delayed payment charges by most HFIs.
These charges are levied if an applicant fails to pay the dues within the stipulated
time after delay has taken place.
Incidental Charges:
This is payable in case the HFI sends a representative from their organization to
collect their outstanding dues. It is normally charged at a flat rate per visit. These
charges are levied by most HFIs.
Prepayment Charges:
It is penalty charged by HFIs from when the applicant makes either a part
prepayment or a full prepayment of loan. This charge is levied on the amount
prepaid by an applicant and not on the equated monthly installments (EMIs) that
he pays. This charge is levied on the amount prepaid and not on the entire
outstanding principal. These charges are gradually being discontinued by the
HFIs.
In case, an applicant wishes to swap the PDC’s given by him to HFI for EMI
repayments, some HFIs charge a flat fee for the
same. Here PDC reers to “Post Dated Cheques”.
.5The Typical Credit Documents that Need to besubmitted to the HFI:
The given list is the exhaustive list of credit documents that need to be submitted
for a general home loan product. The document vary from one HFI to another.
But the general requirements are:-
1. Income Document: it may be
(f) Last three years Profit and Loss Account Statement duly attested
by a Chartered Accountant, if self employed.
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(h) Last three years Income Tax Returns duly filed and certified by
the Income Tax Authorities.
(i) Annual reports of the employers for the last two to three years.
(a) Passport
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(a) Passport
(a) Bank Statement for the last six months of all operating and salary
account.
(b) Bank statements for the last six months of all current accounts, if self
employed.
The name and the list of documents vary from state to state and it also depends on
the type of property being financed. The broad outline of the documents which are
generally required by most HFIs is given below:
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These documents are indicative in nature and do not cover the entire list.
2.6 Type of Housing Finance Home Loans:
A home loan is a loan taken from a Housing Finance Institution (HFI) to buy or to
modify a property. The term property includes:-
A home extension loan is a finance taken from HFI to extend the built up area of
an existing property. This could be by way of any of the following:-
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Land Loan:
A land loan is a loan taken from HFI to purchase the plot of land from either a
developmental authority or a society or a
developer.
Home Equity Loan:
Home equity loan is especially designed to meet financial needs of a person who
already owns a house. The loan amount is given against the existing property and
as a customer the person can utilize these funds to meet any of his requirements.
Difference Between a Normal Home Loan and Home Equity Loan is as follows:-
1. A normal home loan is a loan given for the purchase of new property.
While home equity loan is given against existing property of a customers.
monitored to ensure that loan is actually used to pay the seller of the property.
While in case of the home equity loan the customers can utilize the loan amount
to meet any of his requirements.
The NRI home loan’s available to Non-Resident Indians from various HFIs for
any of the following activities:-
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A balance transfer loan enables the financing of an outstanding home loan. This
loan may have been availed from a HFI at a time when the interest rates are high.
To convert this loan to a lower rate of interest or at the rates prevailing currently a
balance transfer loan is the best option. This can be done with the same HFI or one
could switch to a new HFI. This switch becomes attractive when there is a
substantial decrease in the current interest rate vis-a-
vis the rate of which the loan was availed.
Most housing loans are disbursed at a rate of interest that is fixed over the tenure of
a loan. A converting high interest housing loans to low interest housing loan
enables a customer to get benefit from the decrease in rates and reduce the monthly
installment on the loan. The two option are available at the time of transfer of
loan.
An applicant may get the option of reducing the EMI with the term being
constant. Constant means the balance term left as per the
erms and conditions of the previous sanction by HFI. The EMI reduces as a result
of the reduction in interest rate on loan.
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An applicant may keep his EMI constant and reduce the term
For the cases mentioned above, the loan amount for which an applicant is eligible
is calculated as:-
Eligible Amount = Principal outstanding as on the month in which one apply for
loan (as mentioned in the letter issued by HFI from
where the loan has been taken) + Prepayment Charges.
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The NHB was established in 1988 under the NHB Act 1987, to operate as a
principal agency to promote housing finance institutions (HFIs), at both local and
regional levels and to provide financial and other support to them. The setting up
of NHB, a fully owned subsidiary of the Reserve Bank of India marked the
beginning of the emergency of housing finance as a fund based service in country. It
was established with authorized and paid up capital of Rs. 350 crore. The National
Housing Bank had issued Housing Finance Companies (NHB) Directions, 1989,
to every Housing Finance Company in exercise of the powers conferred on it
under the National Housing Bank Act 1987 (53 of 1957).
The functions of the NHB includes the promotion and development of housing
finance institutions on sound and healthy lines, regulation and supervision of
housing finance companies in the matter of acceptance of deposits and providing
refinance facilities to retail lending institutions in order to speed up housing
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construction activity and augmenting housing stock in the country. NHB also
provides direct lending facility to public agencies such as State level Housing
Boards and Area Development Authorities for large scale housing projects, slum
redevelopment projects and other special projects such as housing for earthquake
and cyclone victims.
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CHAPTER –II
PROFILE OF BANK OF MAHARASHTRA
Bank of Maharashtra is a major public sector bank in India. Government of India
holds 87.01% of the total shares.The bank has 15 million customers across the
length and breadth of the country served through 1897 branches as of 5 April 2016.
It has largest network of branches by any public sector bank in the state of
Maharashtra.
Bank of Maharashtra is an Indian bank based in the city of Pune. The bank was
established in the year 1935 with an initial authorized capital worth Rs. 10.00
Lacs, although it became operational in the early phase of the next year. The bank
got nationalized by the Government of India in the year 1969. With a total
number of 1421 branches located all over India as of April 2009, the bank claims
to have the largest number of branches within the state of Maharashtra, among all
the Public Sector banks.
Facilities
All the branches of Bank of Maharashtra have been fully computerized, with
Depository services and Demat facilities being offered at 131 branches as of April
2009. The bank aims at increasing its ATM network from 345 to 500 soon, apart
from planning to install Biometric ATMs at some selected branches. Apart from it,
introduction of Phone Banking, Internet Banking and Mobile Banking is also on
the cards.
Other Highlights
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employment oriented training courses for the rural unemployed youth from the
districts of Pune, Kolhapur, Satara, Sangli, Nashik, Ahmednagar, Jalgaon, Dhule
and Nandurbar. Mahabank Info Centre is a yet another initiative by Bank of
Maharashtra aimed at providing various retail baking related information to the
customers, and enabling smoother operations for them.
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Head Office
Bank of Maharashtra
www.bankofmaharashtra.in
Mission
History
The bank was founded by V. G. Kale and D. K. Sathe and registered as a banking
company on 16 September 1935 at Pune. The bank was registered on 16
September 1935 with an authorised capital of ₹ 1 million, and began business on 8
February 1936. Bank's financial assistance to small units has given birth to many
of today's industrial houses. After nationalization in 1969, the bank expanded
rapidly. Narendra Singh who had assumed the office of Chairman and Managing
Director from 1 February 2012, left his office on 30 September 2013 on attaining
superannuation. Sushil Muhnot was the Chairman and Managing Director before
Ravindra Prabhakar Marathe. Ravindra Prabhakar Marathe was the MD and CEO
before A.S. Rajiv. A.S.Rajiv became the managing director and chief executive
officer on 1st December 2018.
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The bank attained autonomous status in 1998. As a result, the bank has limited
interference of Government bureaucracy in its decision making process and
internal affairs.
Other attributes
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Business Profile
Bank of Maharashtra is an Indian bank based in the city of Pune. The bank
wasestablished in the year 1935 with an initial authorized capital worth Rs. 10.00
Lacs,although it became operational in the early phase of the next year. The bank
gotnationalized by the Government of India in the year 1969. With a total number
of 1421 branches located all over India as on April 2009, the bank claims to have
the largestnumber of branches within the state of Maharashtra, among all the
Public Sector Banks.Commonly known as a common man's bank, Bank of
Maharashtra adopts a philosophyof "Technology with personal touch", and
follows its motto stating "One Family, OneBank, Bank of Maharashtra".
Facilities
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Other Highlights
Apart from providing regular banking services to the customers, Bank of
Maharashtrahas established two Joint Ventures to fulfill its other commitments
towards the general public and society. These Joint Ventures are M-SETI and
Mahabank Info Centre.Mahabank Self-Employment Training Institute (M-SETI)
is an effort initiated byMahabank Agricultural Research & Rural Development
Fund (MARDEF), a trust run by Bank of Maharashtra receiving help from
National Bank for Rurl Development
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The Bank has been continuously making profits for many years.T he o v e r w h e
lm i n g s u p p or t a nd l o ya l t y o f t e n m i l l i o n c l i e nt e le ha s g i ve n u s a d
d e d strength from time to time and enabled this Bank to establish its network of
more than1300 branches spread over 22 States and 2 Union Territories, thus
giving unique statusof an All India Bank. This network is being expanded to cater
to the banking needs of u nd e r b a n ke d a r e a s . A s t he b a n k i n g i nd
u s t r y is u nd e r g o i n g r a p i d t r a ns f or m a t i o n a nd i n f u s i o n o f s t a t e - of-
t h e - ar t t e c h n o l og y i n e x t e nd i ng s e r v i c e s is t he or d e r o f t he d a y, B
a n k o f M a ha r a s ht r a is n o e x c e p t i o n. W it h t he e ve r i n c r e a s i ng v o lu
m e o f b u s i n e s s , number of clientele and their expectations of high quality
service, the Bank have been
adopting latest technology to render cost-effective and customer-friendly products
andservices without losing its “Personal Touch ".We have an ATM network
operated through VISA Debit card across the country.
This network is being continuously expanded. We have embarked on a very
important technological initiative viz., Core Banking Solutions which is targeted
to transform our Bank totally. It is our constant endeavour to regularly upgrade
our skills and technology and we are eager to interact with as many well wishers
as possible. The bank is proactive in revising its interest rates on deposits for the
benefit of the customers. The Bank's objective is to continuously modify its
existing products and introduce new products to meet changing needs of the
customers. Recently we have started new services like Banc assurance in
collaboration with LIC of India and United India Insurance Co Ltd and Foreign
Inward remittances services through Western Union Money Transfer.
Deposit Schemes
•Mahasaraswati Scheme
• Mixed Deposit Scheme
• Mahabank Lok Bachat Yojana
• Mahabank Unit Deposit Scheme
• Sulabh Jama Yojana
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Credit Facilities
• Educational Loans
• Housing Finance Scheme
• Mahabank Adhar Scheme
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Banking Services
• ATM
• Credit Card
Demat Services
• Distribution of Mutual Funds NRI Services
• Techno Products
• Add-on Services
CHAPTER –III
CONSUMER BEHAVIOUR & A CONCEPTUAL DISCUSSION
Consumer behaviour can be broadly classified as the decisions and actions that
influence the purchasing behaviour of a consumer. What drives consumers to
choose a particular product with respect to others is a question which is often
analysed and studied by marketers. Most of the
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Our survey covered all the factors which the customer consider while buying a
loan or financial services. The details of factors covered in the survey are as under
AGE BRACKET
The respondent were from different age brackets, for the convenience to research
we divided our age in 4 brackets like 18-25 years, 26-40 years, 41-60 years and
above 60 years. The age wise response we received were as mentioned.
50% of the respondents were from the age bracket of 26-40 years, the most
potential age bracket where Banks and NDFC can target to sell their loans and
financial services. 25% of the respondents were among the age bracket of 18-25
years which is again a big potential age bracket to target.
EMPLOYMENT STATUS
We surveyed a direct question “Where does the customer prefers to take loans
from”?. The categories were Banks or NBFC. 75% of the respondents preferred to
take a loan from Banks as against 25% from NBFC. While banks and non-
banking financial companies (NBFC) both are key financial intermediaries that
offer similar services to the customers. Its quite evident that most of the customers
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wants to take loans from Banks, just because of their branding, NBFC too are
governed by RBI but have certain relaxation , all NBFC’s are working to expand
their geographical reach to service the potential customer and are giving a stiff
competition to Banks.
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55% of the respondent preferred to take a Home loan, 18% preferred to take Loan
against Property and Business loan, this category specifically includes the self
employed customers, only 9% respondent showed interest in Personal loans. It
should be noted that the most preferred loan among the customers is home loan,
though the preference for LAP and BL to is increasing, if we see the combine
percentage of LAP and BL, it is around 36% which is not very far off the
preference of Home loan.
Taking a home loan is easier said than done. Though in today’s scenario every
Bank & Financial institution is eager to lend but getting a loan sanctioned can be
a difficult task. Though it may seem all banks are eager to lend, getting a loan
sanctioned can be a tedious task. Taking a home loan is easier said than done.
Also the awareness among the customer pertaining to financial products is also
very limited, basis this we checked for their preference to apply loan. A whopping
42% votes were given to applying loan through a mortgage broker who has a
multiple loan options as per the customer’s requirements and at the convenience
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of their time and place. 33% of the respondents prefer apply the loan directly with
their banks with no intermediately in between. 25% of the votes were given to
online application process, where the respondent wanted to compare and apply
online. With the growing technology in the coming time online comparison and
application will take over all the other preference to apply loans.
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SIGNIFICANT OF STUDY
This Study will help us to understand the consumer’s satisfaction about banking
services and products. This study will help banks to understand, how a consumer
selects, organizes and interprets the Quality of service and product offered by
banks. The market is more aware and realistic about investment and returns from
financial products. In this background this study tries to analyze the customer
satisfaction towards banking services in general and Bank of Maharashtra in
particular.
RATIONAL OF STUDY
HYPOTHESIS
Real home loan interest rate has a negative effect on the demand for home
loans
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Urbanization has a positive impact on the demand for home loans
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RESEARCH METHODOLOGY
Research Methodology is a way to solve the research problem systematically. It
involves the various steps to find out the solution of an identified problem. It also
clarifies the logic behind the study of the problem. When we talk about research
methodology we not only talk of the research method but also consider the logic
behind the method we use in the context of our research study and explain why
we are using a particular method or techniques and why we are not using other so
the result are capable of being evaluated.
RESEARCH DESIGN
A descriptive study tries to discover answers to the questions who, what, when,
where, and, sometimes, how. The researcher attempts to describe or define a
subject, often by creating a profile of a group of problems, people, or events. Such
studies may involve the collection of data and the creation of a distribution of the
number of times the researcher observes a single eventor characteristic (the
research variable), or they may involve relating the interaction of two or more
variables.
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the
present study, 100 respondents were selected at random. All the 100 respondents
were the customers of Amravati City of Bank of Maharashtra Branch.
SAMPLING METHOD
PRIMARY DATA
Primary data are those collected by the investigator himself for the first time and
thus they are original in character, they are collected for a particular purpose. A
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well-structured questionnaire was personally administrated to the selected sample
to collect the primary data.
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SECONDARY DATA
Secondary data are those, which have already been collected by some other persons
for their purpose and published. Secondary data are usually in the shape of
finished products.
LIMITATION
3. Due to the problem of illiteracy some house loan applicants and loan takers
could not respond to questionnaire properly
CHAPTER -III
DATA ANALYSIS AND INTERPRETATION
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A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
2008-2009 580236.48
2009-2010 667026.91
YCMOU Page 37
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
2010-2011 800497.29
2011-2012 920691.91
2012-2013 1093508.58
1200000
1093508.58
1000000
920691.91
800497.29
800000
667026.91
580236.48
600000
Series1
400000
200000
0
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
Interpretation:
From year 2009-10 the loan and advances has been increased by 14%. In year
2010-2011 increased by 20%. In year 2011-2012 increased by 15%. And in year
2012-2013 increased by 18.7%. There is a rapid growth in loans and advances
that shows the Bank of Maharashtrais helping the financial needy people by
providing loans and advances at the low rate of interest.
YCMOU Page 38
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
BANK OF 10%
MAHARASHTRA
ICICI 4%
HDFC 80%
OTHER 6%
TOTAL 100%
H
D
F
C
B
A
N
K
O
F
M
A
H
A
R
A
S
H
T
R
A
YCMOU Page 39
RESPONSES OF PEOPLE IN %
4%
10% 6%
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
I
C
I
C
I
8 O
0 t
% h
e
r
Interpretation:
It has been observed that approximately 80% correspondents are using the service
of BANK OF MAHARASHTRA for their daily transaction, around 10% of people
are using ICICI Bank for their transaction and only 4% & 6% of people are using
HDFC & other Bank service respectively in Bangalore. It also shows that BANK
OF MAHARASHTRA have the highest market position in Bangalore as per my
sample.
YCMOU Page 40
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
YES 82%
NO 18%
TOTAL 100
NO
18%
YES
82%
Interpretation:
From the above data it is clear that most of the customers (around 82%) of
Bangalore have the idea about the product & services of BANK OF
MAHARASHTRA, the rest 18% have the idea about the product they are using.
In this 18% most of the people are from typical rural area.
YCMOU Page 41
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Q3. If yes are you aware of the advance products (Loan segments) of BANK
OF MAHARASHTRA?
YES 94%
NO 6%
TOTAL NO OF 100%
PEOPLE
% OF PEOPLE
6%
YES
NO
94%
Interpretation:
It is clear that most of the people have the idea about the advance product of
BANK OF MAHARASHTRA. Almost all the 95% people who have the idea
about the advance product are the user of BANK OF MAHARASHTRA product
& service.
YCMOU Page 42
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
BANK OF
MAHARASHTR 82%
A
ICICI 8%
HDFC 6%
OTHER 4%
TOTAL NO OF 100%
PEOPLE
B
A
N
K
O
F
M
A
H
A
R
A
S
H
T
R
A
I
C
I
C
I
YCMOU Page 43
6% SATIFACTION FOR HOME LOAN BUYERS OF
A STUDY ON CONSUMER
MAHARASHTRA 8%BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
H
D
F
C
8
O
2
T
%
H
E
R
Interpretation:
According to my sample size 82% of people prefer BANK OF MAHARASHTRA
for loan product, but some people prefer ICICI, HDFC or OTHER Bank for loan
because they have their account in different bank & it is easier for them to get
loan from their bank & it easier for them to pay the interest because it is less as
compare to other bank because they are the customer of that bank.
YCMOU Page 44
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
TOTAL NO 40
OF PEOPLE
8 5%
%
1 H
O
3
M
% E
L
O
A
N
ED
U
C
AT
IO
N
AL
L
O
A
N
55% C
2
A
0
R
% L
O
A
N
PE
YCMOU Page 45
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
RS
O
N
A
L
L
O
A
N
O
T
H
E
R
Interpretation:
From the sample size 82% of people are using the BANK OF MAHARASHTRA
loan product. From the 40 people 55% of people took home loan from BANK OF
MAHARASHTRA. 20% of people took education loan for their children, 13% of
people took car loan from BANK OF MAHARASHTRA. Some of the customer
took 2 type of loan from BANK OF MAHARASHTRA like both car &
educational loan and home & car loan. 8% of people took personal loan. And 5%
of people took other loans.
YCMOU Page 46
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Bad 0 (
% 0
)
Satisfactory 6 (
% 3
)
Good 5 (
4 2
% 7
)
Excellent 4 (
0 2
% 0
)
TOTAL NO. OF 50
PEOPLE
0%
6%
40%
BAD
SATISFACTORY
54%
GOOD
EXCELLENT
Interpretation:
From this it is clear that the service provide by BANK OF MAHARASHTRA in
its advance product is good in between the customer. All of them satisfy with the
product provide by BANK OF MAHARASHTRA. 55% of people said that the
service provide by BANK OF MAHARASHTRA is good & 43% said it is
excellent & just 2% of people said that it is satisfactory.
YCMOU Page 47
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
S
18% I
M
P
L
E
A
N
D
F
A
S
T
P
R
O
C
E
S
S
I
N
G
L
O
N
G
E
R
R
YCMOU Page 48
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
E
10% P
LESS PAPER WORK
A
Y
32% M
E
N
ATTRACTIVE INTEREST RATE
T
40% P
E
R
I
O
D
Interpretation:
Most of the people like the attractive interest rate & longer repayment period. It’s
easier for people to repay the whole loan amount with its interest with low interest
rate and with longer repayment period.
YCMOU Page 49
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
16%
30%
Less than 1 year
1 to 5 years
34%
20% 3 to 5 years
More than 5 years
Interpretation:
From this we get to know that 34% of people like to repay their loan within 1 to 5
years. And 30% person who took Home loan they prefer More than 5 years. And
20% of people who runs small business like to repay the loan amount in 3 to 5
years.
YCMOU Page 50
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
TOTAL NO. 50
OF PEOPLE
M
o
n
t
h
l
y
payments in installments Q
u
a
r
t
e
r
20% l
y
46% 34 A
nnu
% all
y
Interpretation:
Form this sample size we got to know that 46% of people prefer to repay their
YCMOU Page 37
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Loans in Annual installments basis. 34% and 20% of people like to repay the loan
amounts in Quarterly and Monthly respectively.
YCMOU Page 38
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
CHAPTER –V
FINDING CONCLUSION & SUGGESTION
FINDINGS:
All of Bank Of Maharashtra customers are satisfied with the services provided
by the bank.
Many of these customers satisfied with the low interest rate and longer
repayment period of the advance product.
Most of the customers at Amravait prefer to take loan from .
Approximately 40% of advance product users said that the service of Bank Of
Maharashtra in advance product is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to
know about the service & features of Bank Of Maharashtra advance product.
Most customers are shifted from other bank’s advance product to Bank Of
Maharashtra because of hidden charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance
product.
YCMOU Page 39
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
CONCLUSION :
Customer awareness program is required so that more people should attract
towards advance product.
If there are any kind of hidden charges than that must disclose to customer
before giving loan to them.
Bank Of Maharashtra must take some steps so that
customers can get their loan in time. Like phone verification by customer care that
one customer is got their loan on time or not
.It must be before a certain date so necessary steps can be taken.
Bank Of Maharashtra should more concern about physical verification rather
than phone verification so it will avoid fraud or cheating.
Advance product selling agents must not give any type of wrong information
regarding advance product.
Bank Of Maharashtra customer care should more concern about the fastest
settlement of customer problems.
Before deducting or charging any monetary charge Bank Of Maharashtra must
consult with customer.
It is the duty of the bank to disclose all the material facts regarding advance
product, like interest charged, repayment period, other types of charges, etc.
YCMOU Page 40
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
SUGGESTION
The bank should increase the period for repayment of loan.
Bank Of Maharashtra must focus on Segmentation based on customer
knowledge Product offering based on customer demand.
Bank Of Maharashtra must take feedbacks of customers regarding features &
services.
YCMOU Page 41
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Questionnaire
Date:
Name: Occupation:
Q2. Are you aware of the products & services provided by Bank Of Maharashtra
?
Q3. If yes are you aware of the advanced products (Loan segments) of Bank Of
Maharashtra ?
( ] (b) No [ ]
a
)
Yes
[
( H [ ] (b) EDUCATIONAL ]
a O LOAN [
) M
E
L
O
A
N
YCMOU Page 42
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
( C [ ] ( P [ ]
c A d E
) R ) R
S
L O
O N
A A
N L
L
O
A
N
( O [ ]
e T
) H
E
R
S
Q7. What do you feel about the services providing by Bank Of
Maharashtra on Advance products?
( E [ ] ( [ ]
a x b
) c )
e G
l o
l o
e d
n
t
( S [ ] ( B [ ]
c a d a
) t ) d
i
s
f
a
c
t
o
r
y
YCMOU Page 43
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Q8. Which features do you like most in Loan segments of Bank Of Maharashtra ?
(c) Annually [ ]
YCMOU Page 44
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
REFERENCES:
BOOKS
Kotler Philip, marketing management, (Pearson education, 12th edition)
Malhotra K. Naresh, marketing research (An applied orientation), Research
design, (Prentice hall of India pvt. 5th edition)
Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing
Integrated customer Focus across the Firm”
(4th Edition) M.K. Rampal : Service Marketing
WEBSITES
www.Bank of Maharashtra bank.com
www.Bank of Maharashtra india.com
www.wikipedia.org
www.marketresearch.com
YCMOU Page 43
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
YCMOU Page 43