CUSTOMER SATISFACTION TOWARDS LIC HOUSING FINANC

CUSTOMER SATISFACTION TOWARDS LIC HOUSING

FINANCE WITH SPECIAL REFERENCE TO COIMBATORE

Project Report Submitted to Bharathiar University Partial fulfillment of the Requirements for the Award of the Degree of

MASTER OF COMMERCE

Submitted by

GOWTHAM.P

(Reg No.103AA0129)

Under the Guidance of

Mr.,L. RAJKUMAR M.com., M.PHIL.,

Lecturer, Department of Commerce & IB

DEPARTMENT OF COMMERCE & IB

VLB JANAKIAMMAL COLLEGE OF ARTS & SCIENCE

(AUTONOMOUS)

ACCREDITED TO NAAC ISO 9001:2008 CERTIFIED

KOVAIPUDUR, COIMBATORE-641042.

MARCH 2012

VLB JANAKIAMMAL COLLEGE OF ARTS & SCIENCE

(AUTONOMOUS)

ACCREDITED TO NAAC ISO 9001:2008 CERTIFIED

KOVAIPUDUR, COIMBATORE-641042.

CERTIFICATE

This is to certify that the project entitled “CUSTOMER SATISFACTION TOWARD

LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE” is a

record of original research work done by GOWTHAM.P (Reg

No.103AA0129) a student of M.com, V.L.B.Janakiammal College of arts and

science, Coimbatore-641 042. During 2011-2012 in the partial fulfillment of the

requirements for the award of the degree of MASTER OF COMMERCE

submitted for Bharathiar University, Coimbatore-641 046.

_______________________ _________________________

GUIDE Head of the Department

Viva-voce examination held on _________________________

________________________ ________________________

Internal Examiner External Examiner

DECLARATION

I hereby declare that the project work entitled “CUSTOMER SATISFACTION TOWARD LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE” is submitted to Bharathiar University, Coimbatore ,in partial fulfillment of the requirement of the award of the degree of MASTER OF COMMERCE is a record of original project work done by me during the period of study from 2011-2012 in Department of Commerce & IB, V.L.B.Janakiammal College of arts and science, Coimbatore under the supervision Mr., RAJKUMAR M.com., M.PHIL., Lecturer, Department of Commerce & IB.

PLACE : COIMBATORE GOWTHAM.P

DATE : (Reg.No: 103AA0129)

ACKNOWLEDGEMENT

“Motivation is the driving force behind every successful venture”. With regard to the

completion of the project, I wish to acknowledge the following people who were the sources of

motivation behind the successful execution of the report.

I express my heartfelt thanks to the God for showing his grace and blessing on me as a

result of which this training has been completed successfully in time.

I wish to express my sincere thanks and gratitude to our Secretary Dr. K.Palaniappan,

M.Sc., Ph.D., VLB Janakiammal college of Arts & Science, Coimbatore for granting permission

to do institutional training.

I sincerely thank our Principal N.RajakumarM.Sc.,M.Phil.,M.Ed.,Ph.D., for giving me

the opportunity to do this industrial training and his support throughout the training period.

My sincere thanks to Mr. R.Sunderaraj, M.Com., M.Phil., D.H.T., Head of the

Department of commerce & IB for his guidance and also for his most valuable suggestion

throughout the training period.

I wish to express my sincere gratitude to my Guide Mr., Rajkumar M.com., M.PHIL., lecturer in Commerce and IB for her constant encouragement and technical advice which helped me for completing the training successfully.

I also express my sincere thanks to all the staffs of Commerce and IB who have helped me

in the successful completion of the project.

I also extend my thanks to my family and to all my friends without whose assistance and

guidance, this project works would not have been a reality.

CONTENTS

CHAPER TITLE PAGE.NO

ACKNOWLEDGEMENT

LIST OF TABLE

LIST OF CHART

I INTRODUCATION AND DESIGN OF THE STUDY 1

II REVIEW OF LITERATURE 6

III PROFILE OF THE COMPANY 9

IV ANALYSIS AND INTERPRETATION 18

V SUMMARY OF FINDINGS,SUGGSTION 53

CONCLUSION 57

BIBLIOGRAPHY 58

APPENDIX

LIST OF TABLES

S.NO LIST PAGE.NO

1 GENDER CLASSIFICATION OF RESPONDENTS 19

2 MARITAL STATUS OF THE RESPONDENTS 21

3 EDUCATION QUALIFICATION OF THE RESPONDENT 23

4 OCCUPATION STATUS OF THE RESPONDENTS 25

5 MONTHLY INCOME OF THE RESPONDENT 27

6 FAMILY SIZEOF THE RESPONDENTS 29

7 AWARENESS OF LIC HOUSING FIANCES 31

8 PURPOSE OF THE LOAN AVAILED OF THE RESPONDENT 33

9 SPECIAL REASON FOR PREFERING LIC HOUSING

FINANCE

35

10 PERFORMANCE OF LIC HOUSING FINANCE 37

11 RATE OF INTREST CHARGED BY LIC 39

12 LOAN DURATION PROCESS OF LIC HOUSING FINANCE 41

13 TYPE OF THE BULIDING PREFERRED FOR

CONSTRUCTION BY RESPONDENT

43

14 PURPOSE OF CONSTRUCTING THE HOUSE 45

15 METHOD OF PERFERRED CONSTRUCTION THE HOUSE 47

16 LOCATION OF SITE 49

17 PROBLEMS FACED BY THE RESPONDENT 51

LIST OF CHARTS

S.NO LIST PAGE.NO

1 GENDER CLASSIFICATION OF RESPONDENTS 20

2 MARITAL STATUS OF THE RESPONDENTS 22

3 EDUCATION QUALIFICATION OF THE RESPONDENT 24

4 OCCUPATION STATUS OF THE RESPONDENTS 26

5 MONTHLY INCOME OF THE RESPONDENT 28

6 FAMILY SIZEOF THE RESPONDENTS 30

7 AWARENESS OF LIC HOUSING FIANCES 32

8 PURPOSE OF THE LOAN AVAILED OF THE RESPONDENT 34

9 SPECIAL REASON FOR PREFERING LIC HOUSING

FINANCE

36

10 PERFORMANCE OF LIC HOUSING FINANCE 38

11 RATE OF INTREST CHARGED BY LIC 40

12 LOAN DURATION PROCESS OF LIC HOUSING FINANCE 42

13 TYPE OF THE BULIDING PREFERRED FOR

CONSTRUCTION BY RESPONDENT

44

14 PURPOSE OF CONSTRUCTING THE HOUSE 46

15 METHOD OF PERFERRED CONSTRUCTION THE HOUSE 48

16 LOCATION OF SITE 50

17 PROBLEMS FACED BY THE RESPONDENT 52

CHAPTER I

INTRODUCTION AND DESIGN OF THE STUDY

Introduction

House is the first unit of society and it is primary unit of human habitation. The house is

built to grant protection against wind & weather and to give insurance against physical in

security of all kinds. As a matter of facts the house has come to occupy an increasing role as a

framework of family and social life.

East or west home is the best. Foot to eat, clothes to wear, house for shelter. So house is a

common slogan of almost all the house holders in India whether are have or have not.

In India the demand for new house is on the increase over the years due to increase in

population. India needs millions of new house every year. With this end in view the government

of India and the government of Tamil Nadu have formulated many development projects for

housing.

The LIC Housing Finance Limited, housing Development Finance Corporation and Can

find Housing Limited, India Housing Development Finance Corporation Ltd., are the popular

institutions in the field of Housing Finance Market.

All these effects of Government of India, State Government and the Financial Institutions

have led to the growth of Housing in India. The present study is an attempt to the impact of the

utilization of the LIC housing Loan in Coimbatore.

Scope of the study

This study aims at investigating the extent of Lic Housing finances in Coimbatore and its

impact on the customer availing Lic Housing Loan.

Objective of study

1. To study the concept of housing loan by LIC Housing Finance Ltd

2. To High light the extent of the utilization of the LIC Housing loan

3. To study the purpose of the LIC Housing loan

4. To Identify the problems faced by the LIC policy holder while getting loan

5. To offer suggestions for the growth of LIC housing loan

METHODOLOGY AND TOOLS APPLIED

This study is based on questionnaires first hand data were collected directly from the

policy holders and from the records of the offices like LIC HOUSING FINANCE LIT

AVAINASI ROAD COIMBATOR.

The study has involved a survey of the selected policy holders thought data was collected

questionnaire.

The following statistical techniques were used in the study Simple Percentage Analysis

Tools and charts used.

AREA OF THE STUDY

The area of the study refers to Coimbator city.

PERIOD OF STUDY

The period of study was conducted from December 2011 to February 2012

FIELD WORK AND COLLECTION OF DATA

Filed work for this study was carried on by the research himself in the month of

December to March. The research has used Questionnaires method for collecting data. 150

respondents has selected by using the convenient Random sampling Method. Who have

borrowed housing loan from the LIC HOUSING FINANCE LTD. The researcher explained the

content of the Questionnaires and gives it. The second visit were made on the fixed time and the

research collects the filled interview schedules and hearted the ideas of the respondent about the

Lic housing finance Lid.

LIMITIONS OF THE STUDY

Number of the policy holders taken for the study are very limited (150 respondent)

The study cover only coimbator city.

This study based on only the information gives by the respondent.

OPERATIONAL DEFINITION

LIC HFL-LIFE INSURANCE CORPORATION HOUSING FIANCE LIMIT

CHAPTER SCHEME

CHAPTER 1

INTRODUCTION AND DESIGN OF THE STUDY

Its deals with introduction, Scope of the study, Objective of study Scope of the study

methodology and tools applied, area of the study, period of study

Field work and collection of data.

CHAPTER 2

REVIEWE OF LITERATURE

Its deals with a brief review of the literature relevant to Lic housing loan.

CHAPTER 3

PROFILE OF THE COMPANY.

CHAPTER 4

ANALYSIS AND INTERPRETATION

Its deals with analysis and interpretation of the collected data.

CHAPTER 5

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

its deals with findings, suggestion and conclusion

CHAPTER II

REVIEW OF LITERATURE

The chapter makes a brief review of the literature relevant to LIC housing finance and

home loans. There are only limited studies, which are directly relevant to the study concerned.

The researcher has made an attempt to present a brief review of the literature available, which

consists of articles published in journals and M.Com, M.Phil thesis in the related area.

Krishnan (1989) - in his article in ‘Business India’ about role of LIC in lending Home

Loans have stated that over 60 per cent of the business of LIC HFL is believed to be generated

by the LIC Agents. He identified that with two structures of loans (With and without policy).

There is a possibility of some losing interest.

D.Murthy (1991) – in his study states that higher percentage of the person prefer the

LIC housing loan for the reason that it covers risk in case of unfortunate death and it bears low

interest rate and majority of the loans prefers interest plus premium as the mode of repayment

most of the respondents feel that LIC charges are reasonable.

M.Venkatraman (1992) – in his study found that all the respondents have seen

advertisement for home loans. He also identified that the respondents prefer the payment for

purchase of housing flats must be an installment basis. He added that by this perception of

customers, there will be possibility of availing home loans to a greater extent, if these institutions

properly identify the customers.

6

Vijayan (1995) – in his study on LIC housing loan have identified that national Housing

Bank refinance is directly tied to individual housing loan at fixed rate of interest lower than the

rate of housing finance institutions charges to the borrower. As the NHB provides the Sources

for the funds the risk of default is still borne by the LIC housing finance institution. One of the

greatest potential sources of funds for housing finance institution in securitization of mortgages.

P.K. Umamaheswari (1999) - in her study states that “Home loans have to come to

rescue the credit crisis by a misting to a greater extent. She also identify people are unaware and

out of fear of interest charged and burden, do not prefer these scheme to a greater level. If all

there are identify properly there will be greater change in economic conditions of the people and

the goal of “House for all can be achieved easily”.

Mr.R.Kamaraj (2002) – who is working in LIC as an Area Field Officer? In his

statement now a day the commission of LIC agent was reduced, in agent point of view it affects

the growth of LIC HFL.

R.N. Malhotra (2003) – in his article in RBI Bulletin state that inadequacy of finance

resources is not the sole inhabiting factors in housing development. It can be solved by

institutions effective lending of home loans, like, LIC, HDFC, and other Banks etc.

Ravindra Bandekar (2005) - in his article business world has analyzed the prospect of

LIC Housing finance ltd. He concluded that, if is a social sector in the service of the nation

helping ordinary Indians build homes.

Dr.C.Harichandran (2006) - in his articles housing has identified housing as a basic

need. The high prices have kept it at pay for many particularly the weaker sections of the society

financing of housing. Serious problem which the national housing policy aims at mitigating. He

also indentified that Government investment in this sector has been on the increase yet not the

level expected. Hence the rate of institutional finance assumes vital importance. The HUDCO,

HDFC, LIC & Banks can provide housing finance.

The another article published the current status of the life Insurance Corporation of India,

which commanded a monopoly of soliciting and selling life Insurance in India created huge

surpluses and contributed around 7 per cent of India’s GDP in 2006.

8

CHAPTER III

Profile of the company

LIC Housing Finance Ltd one of the largest stand alone Housing Finance Company I

India prides itself having provides finance for over 8, 50,000 house in the country. The company

which was promoted by today most trust service brand Life insurance Corporation of India in

1989, has come a long ways and is surging ahead with a clear vision to emerge as the Best

Housing Fiancés Company with strongly embedded values of fair and transparent business

practices. In the process the company has won the trust and confidence of home finance seekers.

LIC Housing Finance Ltd went public in 1994 and has been a profit making entity year

after year It has always provided finance at affordable and competitive rates making it preferred

destination for Customers The Company has consistently improved on its product offerings and

services standard there By ensuring the best deal to the customers. Today in addition to loan for

purchase of house/flat/plot, it also proving fiancés for renovation and repair house.

9

Main location : 1989 Bombay life Building 2nd

Floor, Mumbai 400 001.

Coimbatore Location : LIC Housing Finance

Avinasi road

Coimbatore. 641028

Main office : 6, Regional office 18

Operating office : 115

Banks : SBI, HDFC

Phone number : 22049682/ 22049799/

Website : www.lichousing.com

SET UP

Incorporation : 19th June 1989

Authorized Capital : Rs. 1,00,00,00,000

Paid-up Capital : Rs. 84, 99, 63,475

No. of Employees : 8861(as on 31/10/2011)

No. of Offices : 18 Regional Offices

http://www.lichousing.com/

: 6 Main Offices

: 115 Area Offices

10

SHAREHOLDING PATTERN (as on 31st March2011)

LIC of India : 39.084per cent

Mutual Funds & UTI : 3.741 per cent

Banks & FIs. Etc : 3.614 per cent

Foreign Institutional Investor : 35.315 per cent

Others : 18.246 per cent

MAIN OFFICE

There were 6 main offices in India

New Delhi

Kolkata

Luck now

Chennai

Mumbai

Bangalore

11

REGIONAL OFFICE

There were 18 Region offices in India namely,

Chandigarh

Nagpur

New Delhi

Hyderabad

Luck now

Pune

Siliguri

Mumbai

Jaipur

Chennai

Vadodara

Bangalore

Bhopal

Coimbatore

Ranchi

12

Operating Offices

LIC HLF has been 115 operating offices thoughts the country

INDIVIDUAL HOUSING LOAN SCHEMS

Loan to individual for new house Property:

Loan up to 85 per cent of property cost

Loan amount starting from Rs 1,00,000

Term up to 20 years

Loan to Non-Resident Indians

Exclusive Scheme for NRIs

Loan up to 70 percent of property cost.


Term up to 10 years

Mortgage Loan of existing house property

Loan for personal / business need against first mortgage of self occupied

residential house / flat


Term up to 15 years

13

Loans to Corporate Employees

Scheme for Employees , Public Limited and Selected private Ltd Companies

Lower rate of interest if payment is through salary deduction

Upfront fee waiver up to 0.50 percent

THE LOAN PROCESS

Application form filled

Identity proof:

Copy of income Tax PAN Card /Passport/Voter ID Card /Driving License/Photo

Credit Card/Employee ID Card as the case may me.

Income Document

In case of salaried person

Copies of last 3 mouth Pay Slips

Copy of From 16 & ITRof latest Assessment year

Copy Salary bank passbook statement for at last 6 month.

14

In case of self-Employed Persons/ Professionals

Copies Income computation Statement & full set of Financials for last 3 Assessment

years

A Note on the Business / professional Activities.

Copies of Bank Passbooks/ Statement for at least past for 6 mouth.

ADVANTAGES OF LIC HFL LOAN

Competitive interest rate

Fixed Floating Rate

Special Concessions of Employers of approved corporate

Loans Against Securitization of Rentals

Double tax benefits on Interest & Principal

NO commitment Charges for Undrawn Loan Amount

15

REQUIREMENT

Personal Documents:

1. Application from with 2 photos , duty filled in & signed

2. Copy of Ration Card/ Phone Bill/ Driving License copy ( residence proof)

3. Copies of Bank Statement for last 6 months

4. Income Documents:

a) If salaried:

Salary certificate from the Employer in LICHFL format.

Salary slips (2 or 3 months) copies

From 16 Xerox.

Appointment order copy (if new employment)

b) If Self – employed:

Last 3 year’s Income Tax Returns (filed in relevant years)

Certified by Auditor

Computation of Income certified by Auditor for 3 years

Pan Card copy

Tax paid (Bank) Chelan copies

Introduction / Creditworthiness letter from Auditor

16

LIC POLICIES HOLDERS IDENTY.

Xerox Copies of existing LIC polices (1 page)

Approved Building Plan – Original (2 copy)

Estimate for construction / extension / renovation attested by an Engineer.

Housing tax receipts (Purchase cases & take over cases only)

Preliminary inspection report by Panel Value.

Copy of land documents in applicants favor (2 copies)

Parent document for last 12 years ( 2 copies at initial stage, original at disbursement

stage)

Encumbrance certificate for the last 15 years ( 2 copies)

Sale Agreement (Purchase cases only )

In case of take over loans

CHAPTER IV

ANALYSIS AND INTERPRETATION

In the order to study the customer satisfaction toward LIC HOUSING FIANCE with

special reference to coimbator structured Questionnaire consists of 23 was prepared. A sample of

150 respondent was selected from coimbator city and information obtained from them were

presents in different tables by using percentage analysis

This analysis helps that a common man to understand what percentage the respondent

belong to each category of a factor.

TABLE NO – 4.1

GENDER OF THE RESPONDENTS

NO Gender Number Percentage

1 Male 119 79.33

2 Female 31 20.66

Total 150 100

Source: Primary Data

It could be seen that majority 80% of the respondent are male and only 20% of the

respondent are female.

So it can be concluded that the majority 80% of the respondent are Male

19

CHART NO - 4.1

GENDER OF THE RESPONDENTS

Table

male

female

20

TABLE NO – 4.2

MARITAL STATUS OF THE RESPONDENTS

MARITAL STATUS NO OF RESPONDENTS PERCENTAGE

Married 129 86

Unmarried 21 14

Total 150 100


Its is understood from the above table that, out of total respondent 86% are married.

While 14% are unmarried.

So, its can be conclude that the majority (86%) of the respondent are married.

21

CHART NO – 4.2

MARITAL STATUS OF THE RESPONDENTS

TABLE NO - 4.3

EDUCATION QUALIFICATION OF THE RERSPONDENT


Its is know from the above table out of the total respondent takes for study, 10% of the

respondent belongs to No formal education , 18% of the respondent belong to School level,27%

of the respondent belong that UG and Diploma and the 22% of the respondent belong to PG,

25% of the respondent belong that of professional.

Majority of the respondent belong that to under graduate diploma level.

23

CHART NO – 4.3

EDUCATION

QUALIFICATION

NO OF

RESPONDENTS

PERCENTAGE

No formal

Education

15 10

School Level 27 18

UG / Diploma 41 27

PG 30 22

Professional 37 25

Total 150 100

EDUCATION QUALIFICATION

No formal Educa-tion

School Level UG / Diploma PG Professional0

10

20

30

40

50

60

70

80

90

100

PERCENTAGE

24

TABLE NO - 4.4

OCCUPATION STATUS OF THE RESPONDENTS


Its is know from the above table out of the total respondent takes for study the, 36% of

the respondent belongs to business or profession, 26%of the respondent belongs to private

employee,24% of the respondent belong that Government employee and the 14% of the

respondent belong to Agriculture category.

Majority of the respondent belong that to Business/Professional.

22

CHART NO - 4.4

STATUS NO OF

RESPONDENTS

PERCENTAGE

Agriculture 21 14

Business/Profession 54 36

Government employee 36 24

PVT employ 39 26

Total 150 100

OCCUPATION STATUS OF THE RESPONDENTS

26

TABLE NO - 4.5

MONTHLY INCOME OF THE RESPONDENT

Agricu

lture

business

/Pro

fessio

n

Govern

ment e

mploye

PVT employ

0

10

20

30

40

50

60

70

80

90

100

14

36

24 26

Percentage


From the above table, it is clear that out of that total respondent ,20% of the resondent

belong s to the income group of below Rs 10000, 36% of them belong of the income group of

Rs.10001-Rs 20,000. 14% of the respondent belongs to the income group of Rs.20001-Rs

30,000 and 30% of the respondent belong to the income group of above Rs 30,0000

Its the concluded that the majority of the respondent belongs to the income group of

Rs.10,001-Rs 20,0000

27

CHART NO - 4.5

MONTHLY INCOME OF THE RESPONDENT

STATUS NO OF

RESPONDENTS

PERCENTAGE

Below Rs 10000 30 20

Rs 10001-20000 54 36

Rs 20001-30000 21 14

Above 30000 45 30

Total 150 100

Below Rs 10000 Rs 10000-

20000 Rs 20000-30000 Above 30000

0

10

20

30

40

50

60

70

80

90

100

20

36

14

30

Percentage

28

TABLE NO – 4.6

FAMILY SIZE OF THE RESPONDENT

SIZE OF THE FAMILY NO OF RESPONDENTS PERCENTAGE%

Up to 2 members 24 16

2-3 54 36

3-5 42 28

Above 5 30 20

Total 150 100


The above data, it is clear that out of the total respondent 16% the family size is up to

2 members, 36 % members of the respondent size o family size of the 2-3 members , 28% of the

respondent have the family size is 3-5 members, and 20% of the respondent belong to the family

size is above 5 members.

Hence it can be concluded that, the majority of the respondent have the family size of 2-3

members

29

CHART NO – 4.6

FAMILY SIZEOF THE RESPONDENT

TABLE NO - 4.7

AWARENESS OF THE RESPENTENT


From the above table showing, 36% of the respondent saying that the Awareness is

through the Agent ,20% of the respondent saying that the awarness through Friends , 14% of the

respondent saying awarness through Relative, 30% of the respondent have no idea about the

Advertiment media.

Majority of the respondent have Awareness through the agent Of LIC HFL.

31

CHART NO - 4.7

AWARENESS OF THE RESPENTENT

STATUS NO OF

RESPONDENTS

PERCENTAGE

Agent 54 36

Friends 30 20

Relatives 21 14

Advertisement 45 30

Total 150 100

32

TABLE NO - 4.8

PURPOSE OF THE LOAN AVAILED


Its is known from the above table out of the total respondent taken for the study, 36%of

the respondent belongs to Construction of New house, 26% of the respondent belong to

Alteration of old house ,24% of the respondent belong that Purchase of New house and the

14%of the respondent belong to Purchases 0f old house and alternative.

Majority of the respondent belong the Construction New house

33

CHART NO - 4.8

PURPOSE OF THE LOAN AVAILED

STATUS NO OF

RESPONDENTS

PERCENTAGE

Construction of New house 54 36

Alteration of old house 39 26

Purchase of new house 36 24

Purchases of old house and

alternative

21 14

Total 150 100

34

TABLE NO - 4.9

SPECIAL REASON FOR PREFERING LIC HFL


The table reveals that majority 52% of the respondent has Risk covers death , 24%

respondent as prefer by it has Easy procedure, 14 % respondent prefer interest rate and 10%

respondent other specific

The majority people special reason to prefer lic housing finance was Risk cover death

35

STATUS NO OF

RESPONDENTS

PERCENTAGE

Risk covers death 78 52

Easy procedure 36 24

Interest rate 21 14

others (specific)…… 15 10

Total 150 100

CHART NO - 4.9

SPECIAL REASON FOR PREFER LIC HOUSING FINANCE

36

TABLE NO - 4.10

PERFORMANCE OF LIC HOUSING FINANCE


From the above table showing, 12% of the respondent saying that they excellent

service,30% of the respondent saying that better service, 36% of the respondent saying that are

not satisfatied, only 22% of the respondent have no idea about the performance of the LIC HFL.

So, majority of the respondent saying that, they are not satisfied, because of delayed,

approval by the LIC HFL.

37

STATUS NO OF

RESPONDENTS

PERCENTAGE

Excellent 18 12

Better 45 30

Not satisfied 54 36

others (specific)… 33 22

Total 150 100

CHART NO - 4.10

PERFORMANCE OF LIC HOUSING FINANCE

38

TABLE NO - 4.11

THE RATE OF INTEREST CHARGED BY LIC HFC


Its is know from the above table out of the total respondent takes for the study, 46% of

the respondent belongs to High rate , 38% of the respondent belong to Medium rate interest ,10%

of the respondent belong that Low interest rate and the 6% of the respondent belong to Very low

interest rate.

Majority of the respondent belong that to High rate of interest.

39

STATUS NO OF

RESPONDENTS

PERCENTAGE

High 69 46

Medium 57 38

Low 15 10

Very low 9 6

Total 150 100

CHART NO - 4.11

THE RATE OF INTEREST CHARGED BY LIC HFC

42

TABLE NO - 4.12

LOAN DURATION PROCESS OF LIC HOUSING FINANCE


From the above table showing, 15% of the respondent says that Below 1 month ,27%of

the respondent saying that 1 to 2 month, 31 % of the respondent says that 2 to 3 month , 22%

respondent 3 to 4 month,only 5% of the respondent have no idea.

So, majority of the respondent saying that, they are loan duration processi ng are 2 to 3

months.

41

STATUS NO OF

RESPONDENTS

PERCENTAGE

Below 1 month 22 15

1 month to 2 month 40 27



Others (specific)…… 10 5

Total 150 100

CHART NO - 4.12

LOAN DURATION PROCESS OF LIC HOUSING FINANCE

Below 1 month

1 month to 2 month

2 month to 3 month

3 month to 4 month

Others (specific)……

0

10

20

30

40

50

60

70

80

90

100

15

2731

22

5

percentage

42

TABLE NO – 4.13

TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION BY THE

RESPONDENTS


Its is know from the above table out of the total respondent taken for study, 48% of the

respondent preferred Single House 26% of the respondent preferred that

Bungalow, ,16% of the respondent preferred Apartment and 10% of the respondent.

Preferred that others.

Majority of the respondent preferred that used to loan for construct the single Single

House .

43

STATUS NO OF

RESPONDENTS

PERCENTAGE

Single House 72 48

Bungalow 39 26

Apartment 24 16


Total 150 100

TABLE NO -4.13

TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION OF THE

RESPONDENTS

Single House Bungalow Apartment others (specific)……

0

10

20

30

40

50

60

70

80

90

100

48

26

1610

Precentage

Precentage

44

TABLE NO – 4.14

PURPOSE FOR CONSTRUCTING THE HOUSE

Source Primary Data

It is clear that the object of constructing a house 53% of the respondent have constructed

for their own residential purpose, 20 % the respondent of rental house, 17% are Business

purpose, 10% are other purpose

So Majority of the respondent like to fulfill their Residential purpose

45

STATUS NO OF

RESPONDENTS

PERCENTAGE

Residential house 81 53

Rental house 30 20

Business 24 17


Total 150 100

CHART NO – 4.14

PURPOSE FOR CONSTRUCTING THE HOUSE

46

TABLE NO – 4.15

METHOD PERFERRED FOR CONSTRUCTION OF THE HOUSE


From the above table, we can clear that, 30% of respondent have that house by the way

of Direct employed , 20% of the respondent have Self Employed as masons and labours for

their construction work and 40% of the respondent have appointed contractors and Engineer’s

for their construction work Balance 10% of the respondent have prefer any other method of both

of them

So, Majority of the respondent like to build their house through contractor

4u

STATUS NO OF

RESPONDENTS

PERCENTAGE

Direct employed 45 30

Self employed 30 20

Contractors 60 40

Engineers 15 10

Total 150 100

CHART NO - 4.15

METHOD PERFERRED FOR CONSTRUCTION OF THE HOUSE

48

TABLE NO – 4.16

LOCATION OF SITE


From the above table, we can clear that, 28% of respondent have that Rural area,

Next 30 % of the respondent have ,Urban Area as masons and labours for their Develop Area

30% of the respondent balance 12% of the respondent have selected any other local Ares.

So, Majority of the respondent are selected urden as well as developed area for their

future convenience.

51

STATUS NO OF

RESPONDENTS

PERCENTAGE

Rural 42 28

urban area 45 30

Develop area 45 30


Total 150 100

CHART NO – 4.16

LOCATION OF SITE

52

TABLE NO - 4.17

PROBLEMS FACED BY POLICY HOLDER WHILE GETTING LOAN

Source: primary Data

The table shows that among the total respondent faced problems 10% at Agents ,22

problem faced at Engineers ,58% Delayed Approval ,balance faced 10 per cent faced others

problems

So majority Delayed Approval it faced at problems faced by policy holder while getting

problems

51

STATUS NO OF

RESPONDENTS

PERCENTAGE

Agent 15 10

Engineers 33 22

Delayed Approval 87 58


Total 150 100

CHART NO - 4.17

PROBLEMS FACED BY POLICY HOLDER WHILE GETTING LOAN

52

CHAPTER v

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

Now a day the demand for housing loan though LIC housing finance limited is on

increasing level. Coimbator is fast developing industrial town in Tamil Nadu state. People

from other districts also come to coimbatore in considerable number and settlehear. The

increase in population and influx of people from other districts create moredemand for

house every year. This is an attempt investigation the extent CUSTOMERSATISFACTION

TOWARD LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO

COIMBATORE

55

FINDINGS.

The following are the major findings of the study on the application of

percentage analysis:

Majority of the respondent of that the majority 80% of the are Male.

Majority of that (84%) of the respondent was are married.

Majority of that respondent are completed their under graduate and

diploma level

Majority of the respondent belong that to Business/Professional.

Majority of the respondent belong to the income group of Rs.10,001-Rs

20,000

Majority of that respondent have the family size is 2 to 3 members

Majority of the respondent have Awareness through the agent Of LIC

HFL.

Majority of the respondent belong that to Construction New house

The majority people special reason to prefer lic housing finance was

Risk cover death

56

Majority of the respondent saying that, they are not satisfied, because of

delayed, approval by the LIC HFL.

Majority of the respondent belong that to High rate of interest.

Majority of the respondent saying that, they are loan duration processing

are 2 to 3 months.

Majority of the respondent preferred that used to loan for construct the

single Single House.

Majority of the respondent like to fulfill their Residential purpose

Majority of the respondent like to build their house through contractor

and Engineers.

Majority of the respondent are selected urban as well as developed area

for their future convenience.

So majority Delayed Approval it faced at problems faced by policy

holder while getting problems .

57

SUGGESTIONS

Agents service is most important in this field. So the LIC HFL should improve

the agent services

The Advertisement of home loans should be given more effectively. So as to

reach all the people in a both urban and rural area.

Most of the respondents feel that the processing of loan is very length and

irritating. So the LIC HOUSING can reduce the processing o loan for easy

applicable.

Now a days lot of private as well as Government banks and financial

institutions provide the housing loans at cheaper rate of interest than the LIC

HFL so it may reduce their rate of interest.

Assistance should be provide for repair and maintainance of the house in large

level. It will increase the borrowers of home loans.

Procedure for providing loan should be reduced

A coimbatore its industrial town more and more people from other district

come and get employment hear so agent may approach all the employees and

self employed person who had came from other districts and help more people

to get housing loan.

58

CONCLUSION

Finally concluded that the LIC HFL can fulfill the constant increase of the population and

their housing needs by properly utilizing its agents liberalizing the terms and conditions of

the home loan. LIC HFC provides assistance from 1,00,000 to 1 crore. If less rate of

interest and quick processing time is implement, the customers can be benefited by the

assistances availed by the LIC HFC and it can play vital role in housing finance.

59

BIBLIOGRAPHY

TEXT BOOKS

1. Fundamentals of markets - William Joseph.

2. Bank Marketing - Smith.

3. Research Methodology - Gupta s.p.

4. Business Research method - Emory.

5. Housing in India - Ramarao.G.

6. Housing Patterns _ Pankaj Agrwal.

NEWS PAPERS AND MAGAZINES

7. Business World.

8. Business India.

9. Economic Time.

WEBSITES

10. www.goole.com

11. www.lichousing.in

12. www.wikipedi.com

http://www.wikipedi.com/

http://www.lichousing.in/

http://www.goole.com/