Consumer perception towards Home Loan.pdf

7/28/2019 Consumer perception towards Home Loan.pdf

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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: Submitted by:Prof. Gazala Y. Ashraf Sujeet Pandit

Assistant Professor Roll No.5057612094

Faculty of Management 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


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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 ofProf. 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) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) 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 TECHNOLOGYSatya 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 Name & Signature of

Internal Examiner External Examiner

Date: 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 PanditRoll.No.: 5057612094

MBA 2nd

Sem

2nd SemesterSection-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.

Ashrafand authored by the Dean. The objective was to compile and synthesize information

on the status ofConsumer 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. DECLARATION

II. CERTIFICATE BY GUIDE

III. CERTIFICATE BYTHE EXAMINERS

IV. ACKNOWLEDGEMENT

V. PREFACE

Sr. No. TITLE Page No.

Chapter 1 1.1 Introduction 8

1.2 Objective of the Study 14

1.3 Scope & Limitations of the Study 15

1.4 Review of Literature 16

Chapter 2 Product Profile 18

Chapter 3 Research Methodology 21

Chapter 4 Analysis and Interpretation 41

Chapter 5 Finding and Suggestion 57

Chapter 6 Conclusion 58

Bibliography

Appendix

INDEX


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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 competitionbetween 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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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 co-

applicants 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:-

OFlat, row house, bungalow from developers

OExisting freehold properties

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

association

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

Self Construction

Features

Purpose

OExternal repairs

OTiling and flooring

OInternal and external painting

OPlumbing and electrical work

OWaterproofing and roofing


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OGrills and aluminum windows

OWaterproofing on terrace

OConstruction of underground/overhead water tank

OPaving of compound wall (with stone/tile/etc.)

OExisting Customer 100percentage of the cost of improvement

ONew 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 interestcomponent 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 loanamount.

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 availedloans.

3. To evaluate the turnaround time for customer in availing their loans frombanks.

4. To identify whether any procedure problem were faced by the customer inavailing the loan.

5. To find out the preferred mode of repayment of customer with regarding theirloans availed from banks.

6. To find out the most attractive features that attracted the clients to avail loanfrom 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. The study is limited to all over India.

2. Because of the limited time, research is conducted with only 80 customers.

3. 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. On few occasions customer were reluctant to give information, because they were

busy.


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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 variouscategories 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. the product

b. the company, industry and competition

c. the market

d. the channel of distribution

e. the sales

f. 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. Primary data

2. 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 ofusing 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

Frequency Percent Valid PercentCumulative

Percent

Valid 1.00 10 12.5 12.5 12.5

2.00 24 30.0 30.0 42.5

3.00 30 37.5 37.5 80.0

4.00 11 13.8 13.8 93.8

5.00 5 6.3 6.3 100.0

Total 80 100.0 100.0

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


Percent

Valid .00 1 1.3 1.3 1.3

1.00 20 25.0 25.0 26.3

2.00 29 36.3 36.3 62.5

3.00 19 23.8 23.8 86.3

4.00 8 10.0 10.0 96.3

5.00 3 3.8 3.8 100.0

Total 80 100.0 100.0

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


Percent

Valid 1.00 40 50.0 50.0 50.0

2.00 25 31.3 31.3 81.3

3.00 4 5.0 5.0 86.3

4.00 6 7.5 7.5 93.8

5.00 5 6.3 6.3 100.0

Total 80 100.0 100.0

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


Percent

Valid 1.00 21 26.3 26.3 26.3

2.00 20 25.0 25.0 51.3

3.00 23 28.8 28.8 80.0

4.00 9 11.3 11.3 91.3

5.00 7 8.8 8.8 100.0

Total 80 100.0 100.0


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


Percent

Valid 1.00 23 28.8 28.8 28.8

2.00 25 31.3 31.3 60.0

3.00 13 16.3 16.3 76.3

4.00 16 20.0 20.0 96.3

5.00 3 3.8 3.8 100.0

Total 80 100.0 100.0




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


Percent

Valid 1.00 27 33.8 33.8 33.8

2.00 33 41.3 41.3 75.0

3.00 10 12.5 12.5 87.5

4.00 7 8.8 8.8 96.3

5.00 3 3.8 3.8 100.0

Total 80 100.0 100.0



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


Percent

Valid 1.00 14 17.5 17.5 17.5

2.00 30 37.5 37.5 55.0

3.00 22 27.5 27.5 82.5

4.00 8 10.0 10.0 92.5

5.00 6 7.5 7.5 100.0

Total 80 100.0 100.0




document procedure is correct.


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8. The decision based on, Processing Fees of Bank, received the following responses.

Frequency:

PRCZING FEES


Percent

Valid 1.00 6 7.5 7.5 7.5

2.00 16 20.0 20.0 27.5

3.00 26 32.5 32.5 60.0

4.00 25 31.3 31.3 91.3

5.00 7 8.8 8.8 100.0

Total 80 100.0 100.0




processing fees is true.


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9. The decision based on, Sanctioning Procedure, received the following responses.

Frequency:

SENCTION PRCZER


Percent

Valid 1.00 6 7.5 7.5 7.5

2.00 10 12.5 12.5 20.0

3.00 23 28.8 28.8 48.8

4.00 32 40.0 40.0 88.8

5.00 9 11.3 11.3 100.0

Total 80 100.0 100.0




document procedure is correct.


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10.The decision based on, Sanctioning Time, received the following responses.

Frequency:

SENCTION TIME


Percent

Valid 1.00 3 3.8 3.8 3.8

2.00 12 15.0 15.0 18.8

3.00 18 22.5 22.5 41.3

4.00 23 28.8 28.8 70.0

5.00 24 30.0 30.0 100.0

Total 80 100.0 100.0



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


Percent

Valid 1.00 7 8.8 8.8 8.8

2.00 6 7.5 7.5 16.3

3.00 25 31.3 31.3 47.5

4.00 15 18.8 18.8 66.3

5.00 27 33.8 33.8 100.0

Total 80 100.0 100.0



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


Percent

Valid .00 1 1.3 1.3 1.3

1.00 34 42.5 42.5 43.8

2.00 9 11.3 11.3 55.0

3.00 18 22.5 22.5 77.5

4.00 5 6.3 6.3 83.8

5.00 13 16.3 16.3 100.0

Total 80 100.0 100.0



disagree and remaining 16.3% indicate that the customers strongly disagree that home loan is

going online.


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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


Percent

Valid 1.00 15 18.8 18.8 18.8

2.00 8 10.0 10.0 28.8

3.00 21 26.3 26.3 55.0

4.00 13 16.3 16.3 71.3

5.00 23 28.8 28.8 100.0

Total 80 100.0 100.0




should interest charged by bank should be different on the basis of income level.


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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


Percent

Valid .00 1 1.3 1.3 1.3

1.00 17 21.3 21.3 22.5

2.00 21 26.3 26.3 48.8

3.00 14 17.5 17.5 66.3

4.00 11 13.8 13.8 80.0

5.00 16 20.0 20.0 100.0

Total 80 100.0 100.0




Seize of asset facility by bank is the right step, in case of nonpayment of EMI is true.


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15.The decision based on, facility provides by the bank, received the following

responses.

Frequency:

FCLTY PRVD BANK


Percent

Valid .00 4 5.0 5.0 5.0

1.00 8 10.0 10.0 15.0

2.00 12 15.0 15.0 30.0

3.00 18 22.5 22.5 52.5

4.00 31 38.8 38.8 91.3

5.00 7 8.8 8.8 100.0

Total 80 100.0 100.0




they satisfy with facility provide by the bank.


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17.The decision based on, prefer private sectors bank for home Loan, received the

following responses.

Frequency:

PRIVATE SECTOR


Percent

Valid 1.00 26 32.5 32.5 32.5

2.00 20 25.0 25.0 57.5

3.00 7 8.8 8.8 66.3

4.00 12 15.0 15.0 81.3

5.00 15 18.8 18.8 100.0

Total 80 100.0 100.0



disagree and remaining 18.8% indicate that the customers strongly disagree how much

people like to prefer public sectors bank for home Loan.


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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, andoblique 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 Std. Deviation Analysis N

HL EZY 2 UNDRSTND 2.7125 1.05775 80

MORTG PRCS 2.2750 1.10207 80

EMI FIX 1.8875 1.19061 80

SRVC RCVD 2.5125 1.24264 80

INTRST CHRG BY BNK 2.3875 1.20646 80

HL FVOR 2.0750 1.07650 80

DOC PRCZER 2.5250 1.12481 80

PRCZING FEES 3.1375 1.07614 80

SENCTION PRCZER 3.3500 1.08032 80

SENCTION TIME3.6625 1.16862 80

4 CLZR CHRGD 3.6125 1.26785 80

ONLINE 2.3875 1.51360 80

INTRST AS INCME LVL 3.2625 1.45605 80

SIZ WHL NNP EMI 2.8125 1.46774 80

FCLTY PRVD BANK 3.0625 1.32497 80

PUBLIC SECTOR 2.2375 1.39841 80

PRIVATE SECTOR 2.6250 1.52925 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 SamplingAdequacy. .625

Bartlett's Test ofSphericity

Approx. Chi-Square 591.314

df 136

Sig. .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 Extraction

HL EZY 2 UNDRSTND 1.000 .675

MORTG PRCS 1.000 .798

EMI FIX 1.000 .702SRVC RCVD 1.000 .778

INTRST CHRG BY BNK 1.000 .773

HL FVOR 1.000 .800

DOC PRCZER 1.000 .851

PRCZING FEES 1.000 .638

SENCTION PRCZER 1.000 .761

SENCTION TIME 1.000 .839

4 CLZR CHRGD 1.000 .683

ONLINE 1.000 .713

INTRST AS INCME LVL 1.000 .609

SIZ WHL NNP EMI 1.000 .815

FCLTY PRVD BANK 1.000 .604

PUBLIC SECTOR 1.000 .783

PRIVATE SECTOR 1.000 .714

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.


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Total Variance Explained

Component Initial Eigenvalues

Extraction Sums of SquaredLoadings

Rotation Sums of SquaredLoadings

Total

% ofVarianc

eCumulativ

e % Total% of

VarianceCumulative

% Total% of

VarianceCumulative

%

1 4.376 25.738 25.738 4.376 25.738 25.738 2.631 15.475 15.475

2 2.765 16.268 42.006 2.765 16.268 42.006 2.463 14.486 29.961

3 1.930 11.355 53.361 1.930 11.355 53.361 2.392 14.071 44.032

4 1.260 7.409 60.770 1.260 7.409 60.770 2.029 11.933 55.964

5 1.112 6.541 67.311 1.112 6.541 67.311 1.683 9.898 65.862

6 1.094 6.433 73.744 1.094 6.433 73.744 1.340 7.882 73.744

7 .736 4.329 78.073

8 .689 4.055 82.129

9 .634 3.728 85.857

10 .519 3.054 88.911

11 .466 2.743 91.654

12 .407 2.396 94.050

13 .290 1.705 95.755

14 .246 1.446 97.201

15 .215 1.266 98.468

16 .152 .895 99.363

17 .108 .637 100.000

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.


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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

Factor

Rotation Sums of Squared Loadings

Total % of Variance Cumulative %

1 2.321 13.651 13.6512 2.216 13.034 26.686

3 1.788 10.520 37.206

4 1.707 10.044 47.249

5 1.366 8.037 55.286

6 .944 5.555 60.841

Extraction Method: Principal Axis Factoring.


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Reproduced Correlations

HL EZY 2

UNDRSTND

MORTG

PRCS EMI FIX

SRVC

RCVD

INTRSTCHRG BY

BNK

HL

FVOR

Reproduced Correlation HL EZY 2 UNDRSTND .675(b) .322 .448 -.002 .319 .150

MORTG PRCS .322 .798(b) .667 .329 .456 .074

EMI FIX .448 .667 .702(b) .416 .608 .303

SRVC RCVD -.002 .329 .416 .778(b) .543 .578

INTRST CHRG BY BNK .319 .456 .608 .543 .773(b) .427

HL FVOR .150 .074 .303 .578 .427 .800(b)

DOC PRCZER .176 .670 .535 .505 .357 .079

PRCZING FEES .167 .316 .304 .420 .338 .057

SENCTION PRCZER.167 .217 .172 .299 .201 .006

SENCTION TIME .111 -.035 .017 .276 .185 .039

4 CLZR CHRGD -.122 -.091 -.100 .266 .085 .121

ONLINE .208 -.060 -.090 -.281 -.297 .094

INTRST AS INCME LVL -.342 -.312 -.389 -.087 -.402 .097

SIZ WHL NNP EMI .114 .115 -.007 -.078 -.291 .148

FCLTY PRVD BANK -.384 -.295 -.415 -.022 -.493 -.044

PUBLIC SECTOR .265 -.166 .046 .212 .093 .219

PRIVATE SECTOR .259 .318 .372 .034 .475 .124

Residual(a) HL EZY 2 UNDRSTND .040 -.082 .096 -.062 .014

MORTG PRCS .040 -.103 -.045 -.051 .069

EMI FIX -.082 -.103 .000 .031 -.109

SRVC RCVD .096 -.045 .000 -.044 -.134INTRST CHRG BY BNK -.062 -.051 .031 -.044 -.079

HL FVOR .014 .069 -.109 -.134 -.079

DOC PRCZER -.058 -.062 -.018 -.030 -.014 .014

PRCZING FEES .035 -.017 -.133 -.028 .030 .054

SENCTION PRCZER -.034 -.044 -.003 -.001 -.073 .058

SENCTION TIME -.016 .000 .019 -.016 .044 .002

4 CLZR CHRGD .019 .096 .079 -.010 -.027 -.035

ONLINE -.130 -.073 .037 .073 .068 -.089

INTRST AS INCME LVL .080 .014 -.002 -.002 -.025 -.045

SIZ WHL NNP EMI -.084 -.005 -.006 -.057 .054 .006

FCLTY PRVD BANK .099 -.038 .019 .025 .050 -.004

PUBLIC SECTOR -.166 .033 .038 -.028 -.013 -.062PRIVATE SECTOR -.068 -.038 -.062 .009 -.079 .016

Contd..


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DOC

PRCZE

R

PRCZIN

G FEES

SENCTIO

N PRCZER

SENCTIO

N TIME

4 CLZR

CHRGD ONLINE

Reproduced Correlation HL EZY 2 UNDRSTND0.176 0.167 0.167 0.111 -0.122 0.208

MORTG PRCS0.67 0.316 0.217 -0.035 -0.091 -0.06

EMI FIX0.535 0.304 0.172 0.017 -0.1 -0.09

SRVC RCVD0.505 0.42 0.299 0.276 0.266 -0.281

INTRST CHRG BY BNK0.357 0.338 0.201 0.185 0.085 -0.297

HL FVOR0.079 0.057 0.006 0.039 0.121 0.094

DOC PRCZER.851(b) 0.579 0.469 0.277 0.111 -0.231

PRCZING FEES0.579 .638(b) 0.622 0.6 0.366 -0.277

SENCTION PRCZER0.469 0.622 .761(b) 0.741 0.573 -0.044

SENCTION TIME0.277 0.6 0.741 .839(b) 0.635 -0.132

4 CLZR CHRGD

0.111 0.366 0.573 0.635 .683(b) 0.032ONLINE

-0.231 -0.277 -0.044 -0.132 0.032 .713(b)

INTRST AS INCME LVL-0.282 -0.261 -0.061 -0.062 0.243 0.4

SIZ WHL NNP EMI0.052 -0.125 0.096 -0.072 0.123 0.686

FCLTY PRVD BANK-0.029 -0.032 0.09 0.094 0.226 0.186

PUBLIC SECTOR0.154 0.334 0.242 0.384 0.036 -0.177

PRIVATE SECTOR-0.071 -0.087 -0.076 -0.13 -0.03 0.043

Residual(a) HL EZY 2 UNDRSTND-0.058 0.035 -0.034 -0.016 0.019 -0.13

MORTG PRCS-0.062 -0.017 -0.044 0 0.096 -0.073

EMI FIX-0.018 -0.133 -0.003 0.019 0.079 0.037

SRVC RCVD-0.03 -0.028 -0.001 -0.016 -0.01 0.073

INTRST CHRG BY BNK-0.014 0.03 -0.073 0.044 -0.027 0.068

HL FVOR0.014 0.054 0.058 0.002 -0.035 -0.089

DOC PRCZER-0.064 0.034 0.014 -0.038 0.058

PRCZING FEES-0.064 -0.076 -0.08 -0.066 0.003

SENCTION PRCZER0.034 -0.076 -0.045 -0.14 -0.033

SENCTION TIME0.014 -0.08 -0.045 -0.084 -0.029

4 CLZR CHRGD-0.038 -0.066 -0.14 -0.084 0.034

ONLINE0.058 0.003 -0.033 -0.029 0.034

INTRST AS INCME LVL0.042 0.019 0.05 -0.005 -0.091 -0.119

SIZ WHL NNP EMI-0.046 0.045 -0.03 0.042 -0.034 -0.106

FCLTY PRVD BANK-0.036 -0.027 -0.017 0.026 -0.03 0.022

PUBLIC SECTOR 0.055 -0.079 0.021 -0.032 0.038 0.031

PRIVATE SECTOR0.084 -0.005 0.087 -0.013 -0.124 -0.001

Contd


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INTRST AS

INCMELVL

SIZ WHLNNP EMI

FCLTY

PRVDBANK

PUBLICSECTOR

PRIVATESECTOR

Reproduced Correlation HL EZY 2 UNDRSTND-0.342 0.114 -0.384 0 .265 0.259

MORTG PRCS-0.312 0.115 -0.295 -0.166 0.318

EMI FIX -0.389 -0.007 -0.415 0.046 0.372

SRVC RCVD-0.087 -0.078 -0.022 0.212 0.034

INTRST CHRG BY BNK-0.402 -0.291 -0.493 0.093 0.475

HL FVOR0.097 0.148 -0.044 0 .219 0.124

DOC PRCZER-0.282 0.052 -0.029 0.154 -0.071

PRCZING FEES-0.261 -0.125 -0.032 0.334 -0.087

SENCTION PRCZER-0.061 0.096 0.09 0.242 -0.076

SENCTION TIME-0.062 -0.072 0.094 0.384 -0.13

4 CLZR CHRGD0.243 0.123 0.226 0.036 -0.03

ONLINE0.4 0.686 0.186 -0.177 0.043

INTRST AS INCME LVL.609(b) 0.47 0.471 -0.259 -0.177

SIZ WHL NNP EMI0.47 .815(b) 0.346 -0.193 -0.086

FCLTY PRVD BANK0.471 0.346 .604(b) 0.028 -0.517

PUBLIC SECTOR-0.259 -0.193 0.028 .783(b) -0.391

PRIVATE SECTOR-0.177 -0.086 -0.517 -0.391 .714(b)

Residual(a) HL EZY 2 UNDRSTND0.08 -0.084 0.099 -0.166 -0.068

MORTG PRCS0.014 -0.005 -0.038 0.033 -0.038

EMI FIX-0.002 -0.006 0.019 0.038 -0.062

SRVC RCVD-0.002 -0.057 0.025 -0.028 0.009

INTRST CHRG BY BNK-0.025 0.054 0.05 -0.013 -0.079

HL FVOR-0.045 0.006 -0.004 -0.062 0.016

DOC PRCZER

0.042 -0.046 -0.036 0.055 0.084PRCZING FEES0.019 0.045 -0.027 -0.079 -0.005

SENCTION PRCZER0.05 -0.03 -0.017 0.021 0.087

SENCTION TIME-0.005 0.042 0.026 -0.032 -0.013

4 CLZR CHRGD-0.091 -0.034 -0.03 0.038 -0.124

ONLINE-0.119 -0.106 0.022 0.031 -0.001

INTRST AS INCME LVL-0.032 -0.204 0.06 -0.017

SIZ WHL NNP EMI-0.032 -0.054 0.03 0.004

FCLTY PRVD BANK-0.204 -0.054 -0.071 0.122

PUBLIC SECTOR0.06 0.03 -0.071 0.125

PRIVATE SECTOR-0.017 0.004 0.122 0.125

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


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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 .512 .529 -.282 .386 .141

2 .736 -.603 -.030 .180 .010 .247

3 -.019 .105 .308 .874 .207 -.2934 -.076 -.060 -.509 -.019 .855 -.003

5 .443 .566 -.601 .177 -.276 -.126

6 -.217 .198 -.060 .303 -.031 .904

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 2 3 4 5 6

HL EZY 2 UNDRSTND .058 .503 .133 .115 .025 .157MORTG PRCS .025 .464 .661 .035 .095 -.172

EMI FIX .015 .603 .432 -.016 .293 .038

SRVC RCVD .250 .012 .325 -.195 .771 .018

INTRST CHRG BY BNK .178 .637 .148 -.270 .477 -.051

HL FVOR .035 .148 -.005 .142 .593 .090

DOC PRCZER .277 .101 .857 -.095 .143 .117

PRCZING FEES .549 .104 .361 -.193 .123 .155

SENCTION PRCZER .748 .034 .282 .038 .021 .110

SENCTION TIME .919 .011 -.016 -.084 .030 .197

4 CLZR CHRGD .605 -.167 -.038 .080 .168 -.078

ONLINE -.075 -.016 -.131 .659 -.042 -.046

INTRST AS INCME LVL .016 -.453 -.195 .409 .063 -.183SIZ WHL NNP EMI .041 -.114 .131 .909 .039 -.058

FCLTY PRVD BANK .133 -.615 -.034 .231 .000 .014

PUBLIC SECTOR .198 .001 .012 -.141 .125 .804

PRIVATE SECTOR -.087 .556 -.028 -.008 .089 -.312

Extraction Method: Principal Axis Factoring.Rotation Method: Varimax with Kaiser Normalization.a Rotation converged in 6 iterations.

Factor Matrix(a)

Factor

1 2 3 4 5 6

HL EZY 2 UNDRSTND .416 -.181 .185 -.162 .311 -.065

MORTG PRCS .639 -.208 .292 -.261 -.231 .216

EMI FIX .701 -.242 .225 -.034 .019 .097

SRVC RCVD .582 .298 .124 .485 -.165 .199

INTRST CHRG BY BNK .780 -.184 .043 .273 -.070 -.173

HL FVOR .293 .061 .312 .489 .152 .038

DOC PRCZER .662 .259 .086 -.250 -.217 .464

PRCZING FEES .568 .431 -.102 -.127 -.024 .013

SENCTION PRCZER .435 .608 .088 -.238 -.036 -.177

SENCTION TIME .384 .744 -.112 -.132 .084 -.393

4 CLZR CHRGD .106 .577 .124 .046 -.141 -.240

ONLINE -.321 -.001 .565 -.120 .198 -.074

INTRST AS INCME LVL -.498 .249 .315 .139 -.107 -.022

SIZ WHL NNP EMI -.265 .199 .818 -.166 .123 .144

FCLTY PRVD BANK -.424 .461 .087 .025 -.054 .168

PUBLIC SECTOR .262 .322 -.284 .090 .521 .142

PRIVATE SECTOR .302 -.466 .214 .034 -.148 -.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

1 2 3 4 5 6

HL EZY 2 UNDRSTND -.007 .200 -.031 .082 -.052 .127

MORTG PRCS .007 .204 .245 .038 -.153 -.180

EMI FIX -.044 .303 .031 .090 .037 .102

SRVC RCVD -.039 -.408 .015 -.128 .927 -.151

INTRST CHRG BY BNK .059 .461 -.213 .000 .306 -.100

HL FVOR -.036 .023 -.092 .072 .263 .081

DOC PRCZER -.051 -.312 .920 -.130 -.235 .089

PRCZING FEES .079 -.009 .069 -.039 -.034 .006

SENCTION PRCZER .205 .016 .059 .029 -.114 -.064

SENCTION TIME .848 .180 -.311 .019 -.218 -.063

4 CLZR CHRGD .129 -.076 -.043 .001 .073 -.158

ONLINE .003 .088 -.057 .181 .014 .051

INTRST AS INCME LVL .030 -.168 -.022 .048 .117 -.129

SIZ WHL NNP EMI .036 .099 .059 .895 .140 .137

FCLTY PRVD BANK .013 -.261 .055 -.006 .076 -.040

PUBLIC SECTOR-.193 .083 -.065 .098 .093 1.080

PRIVATE SECTOR .041 .221 -.078 .031 -.014 -.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 .631 .498 -.298 .350 .140

2 .768 -.561 .078 .109 .128 .246

3 .023 .167 .160 .877 .309 -.286

4 -.192 -.170 -.375 -.208 .866 -.027

5 -.085 .266 -.331 .294 -.013 .852

6 -.493 -.399 .686 .029 .126 .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 2 3 4 5 6

HL EZY 2 UNDRSTND -.039 .274 -.049 .135 -.070 .307MORTG PRCS .033 .203 .296 .042 -.198 -.285

EMI FIX -.047 .292 .041 .094 .025 .147

SRVC RCVD -.034 -.370 .039 -.132 .825 -.127

INTRST CHRG BY BNK .062 .379 -.190 -.050 .371 -.192

HL FVOR -.062 .021 -.121 .086 .372 .170

DOC PRCZER -.055 -.332 .865 -.127 -.193 .096

PRCZING FEES .063 -.003 .084 -.033 -.036 .088

SENCTION PRCZER .225 .029 .055 .041 -.121 -.114

SENCTION TIME .832 .198 -.324 .037 -.221 .018

4 CLZR CHRGD .150 -.110 -.030 -.016 .083 -.270

ONLINE .012 .126 -.074 .223 -.008 .066

INTRST AS INCME LVL .054 -.187 -.026 .032 .135 -.245SIZ WHL NNP EMI .029 .074 .073 .861 .141 .139

FCLTY PRVD BANK .012 -.257 .062 -.007 .073 -.041

PUBLIC SECTOR -.178 .094 -.060 .087 .097 .949

PRIVATE SECTOR .088 .245 -.103 .022 -.019 -.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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1716151413121110987654321

Component Number

5

4

3

2

1

0

Eigenvalue

Scree Plot

Interpretation of ResultsThe 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





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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. 44percentages 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 areaware 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. S.P GUPTA, Statistical Methods, New Delhi, Sultan Chand & Sons

Publications,2002

II. KOTLER PHILIP, Marketing Management, New Delhi, Prentice-Hall of IndiaPvt.Ltd.,1971

III. C.R. Kothari, Research Methodology, New Delhi, New Age Publishers,1995

JOURNAL REFERENCES:

I. ICFAI, Journal of Service Marketing, December 2004II. ICFAI, Journal of Monetary Economics, November 2004

III. Indian Journal of Marketing May 2004

E-REFERENCES:

I. www.icici/india.com

II. www.sbi.co.in

III. www.hdfc/india.com

IV. www.google.co.in

V. www.citifinancial.co.in


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Questionnaire

Dear respondent, your valuable time and effort in filling this questionnaire arehighly appreciated. The information collected through this questionnaire is apart of our project determining investors confidence in the Indian StockMarket and will be used for academic purpose only.

CONSUMER PERCEPTION ON HOME LOANShare your views by putting a mark in the boxes against each question. To maintain confidentiality.

How satisfied are you, about Home Loan???

Name: Profession:

Age: Place:

Qualification: Date:

Cell No: Mail ID:

1- Strongly Agree, 2- Agree, 3-Neutral, 4- Disagree, 5-Strongly Disagree

Anything else you would like to share:-

Thanks for your valuable inputs.

Sr.

No.

Particulars

1 2 3 4 51 The application form of Home Loan is easy to understand.

2 The mortgage process has been explained thoroughly.

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?


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