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tech, FIE, Principal of SRM engineering college for having given me this opportunity to do the course in this college. My special thanks to the Dean, Dr.THAMPI LATIFF, SRM institute of Management studies, SRM Engineering college. I profited immensely by the thought provoking questions, frnak discussions and critical appraisal of my work by my respected guide Shri.T.RAMACHANDRAN, M.Com, M.Phil, MBA, senior faculty, SRM institute of Management Studies, during the course of my project work. I wish to express my whole hearted thanks and heart felt gratitude for his able guidance. I am very much indebted to “THE CHENGALPATTU COOPERATIVE URBAN BANK LIMITED” for permitting me to do this project. I am thankful to Shri.R.RAJENDRAN, MA, HDC, secretary and Shri.Pandiyan MA, Manager of Algesa Nagar Branch and all the staff for their kind co-operation in completing the project. My special thanks to Shri.GOWRI SHANKAR, Internal Auditor of Valliammai Society for his valuable guidance in completing the project. My special thanks to all faculty members in the SRM Institute of Management Studies for their constant support and encouragement throughout my career. Last but not least, my sincere thanks to all my family members and friends for their kind co-operation in completing this project.
LIST OF TABLES
LIST OF CHARTS
CHAPTER 1. AN INTRODUCTION TO HOUSING FINANCE INDUSTRY 2. INDUSTRY PROFILE 3. BANK PROFILE 4. OBJECTIVES OF THE STUDY 5. METHODOLOGY 6. LIMITATIONS
1 7 31 36 37 40
7. ANALYSIS & INTERPRETATION 8. FINDING AND SUGGESTIONS
LIST OF TABLES Table No. 1. 2. Name of the table Census gouses and residential dwelling Distribution of houses by type of Dwelling – 1989 3. Tread in urbanization 4. 5. Quality of housing stock Housing shortage 19 20 20 19 Page No. 19
Public and private sector investment In housing 20 30
Progress of housing society Chengalpattu co-operative urban bank growth
34 54 55
Loans sanctioned occupationwise 1996-97 Loans sanctioned occupationwise 1997-98
Loans sanctioned occupationwise 1998-99 Customer view – interest rate
Services/Performance of the bank Loans sanctioned – as per income group
Customer view – ranking of priority Customer view – about terms
Basis of selecting the bank Customer view – procedural aspect
Loans sanctioned – as per quantum of amount Loans sanctioned – purpose wise
Outstanding dues – as per installments Customer view – sources of identification
Likert sale on services/Performance of the bank Likert scale on interest rate of the bank -
16. 34 (c) 52 (c) 3. Loans sanctioned – as per quantum of amount Loans sanctioned – purpose wise - 64 (c) 65 (c) 15. Outstanding dues Customer view – sources of identification - 66 (c) 67 (c) . 4. Name of the chart Chengalpattu Co-operative urban bank growth Performance of Chengalpattu Co-operative urban bank Page No. Customer view – procedural aspect - 63 (c) 13. Loans sanctioned occupation wise 1996 – 97 Loans sanctioned occupation wise 1997 – 98 - 54 (c) 55 (c) 5. 10. 1. 8. 6. 14. Basis of selecting the bank - 62 (c) 12.LIST OF CHARTS Chart No. Customer view – ranking of priority Customer view – about terms - 60 (c) 61 (c) 11. Services/Performances of the bank Loans sanctioned as per income group - 58 (c) 59 (c) 9. 2. Loans sanctioned occupation wise 1998 – 99 Customer view – interest rate - 56 (c) 57 (c) 7.
ABBREVIATIONS 1. CMHC – The General Mortgage and Housing Corporation 10. HFC . GIC – General insurance Corporation 7. HUDCO . LIC – Life insurance Corporation 6. GRHC – The Gujarat Rural Housing Corporation 8. VA – Veteran‟s Administration 15. HDFC – Housing Development Finance Corporation 4. FNMA – Federal National Mortgage Association 16.The Housing and Urban Development Corporation Ltd. FHA – Federal Housing Administration 14. NHB – National Housing Bank 5. SLA – Savings and Loans Association 17. KHB – Korean Housing Bank 11.Housing Finance Companies 2. 3. POSB – Post Office Saving Bank 12. NHA – National Housing Act 9. JAC – Joint Advisory Committee 13. RBI – Reserve Bank of India .
SEBI – Security and Exchange Board of India 19. MIG – Middle Income Group 23. NSSO – National Sample Survey Organisation . HIG – High Income Group 24. BMTPC – Building Materials and Technology Promotion council 32. HSB – Housing Installment Saving Deposit 34.18. WHIDS – Welfare Housing Installment Deposit Scheme 35. LIG – Lower Income group 22. CPWD – Central Public works department 29. NBO – National Building Organization 26. NBCC – National Building Construction Corporation 28. GSS – Global Strategy for Shelter 33. TCPO – Town and Country Planning Organisation 30. EWS – Economically weaker sections 21. BIS – Bureau of Indian Standard 31. CBRI – Central Building Research Institute 27. EMI – Equated Monthly Installment 25. UTI – Unit Trust of India 20.
ILO – International Labour Organization 40. ARC – Arbitration 41. NARDCO – National Real Estate Development Council . EP – Execution Petition 43. DR – Deputy Registrar 42. SOB – State Co-operative bank 37. OD – Over Due 44. PCB – Primary Co-operative Bank 39. DCB – District central co-operative bank 38.36.
Housing companies (HFC‟s) are comparatively of recent origin. House is not a place of dwelling alone.1 with 128. it also satisfies an individual‟s social and psychological needs.0% with 291 million in 2001.8 million live in urban areas.2% with 151. Expenditure as housing (public sector contribution) as percentage of total expenditure up to seventh five year plan 7. More than 90% of this shortage involves the environmentally vulnerable sections of the society. 19. There is a strong urge in every individual . The co-operative housing fiancé system. which is more than 80 years old.80%.70. more than half of the households live in houses made of mud and gross. 000 crore. HOUSING FINANCE COMPANIES Housing finance institutions have two streams-housing finance companies (HFC) and cooperative housing societies. we are short of 22. House by itself is not a productive asset but investement in housing helps in increasing productivity. . without access to hygienic facilities. The percentage went up to 21. After 50 years of independence. the problem is that of availability of land and the price of which the land is available. This sector is thus the engine for economic growth and a catalyst for economic recovery. According to 1971 census. is the best example of “self help” in housing.9 million in 1976.000 which functions under the Registrar of co-operative societies in various states like co-operative banks and institutions. Number of specialized branches as on 30-06-95 public sector banks totally 681 and private sector banks totally 54 in that no housing finance branch in private sector banks and out of 681 public sector banks only 2 are so tremendous. Percentage of housing investment to total investment in economy as per English five year plan budgetary allocation Rs.CHAPTER – 1 INTRODUCTION Housing is a basic necessity of life. In 1971. We have the problem of rural housing versus urban housing. provision of shelter is thus closely linked with a country‟s overall socio – economic development.9% of our people 108. so huge and they are also getting more and more difficult. In rural housing land is not the problem average cost of a house in rural areas is also low. Housing is also imperative for dignified living and needs to be given the status of an essential commodity. ranked behind only to food and clothing in importance.9 million housing units (1991 census) 50% of urban population lives in slums. In urban housing. whether rich or poor. It has two-tier structure – Apex federations at state level and co-operative housing societies at primary level numbering about 70. Nearly 25-30 percent of the urban population live is slums.4 million in 1981 and rule of urbanization is estimated to go upto 29. 22. to own a house. A house gives a sense of security to those who own one when one has a house he gets better shelter and security for members of his family.
the competition is getting hot. The housing finance market in India is the growth stage. in 1986. It was in recognition of the mutually supportive roles of shelter and development that in mid eighties following declaration of 1987 as the “International year of shelter for homeless” concerted efforts were made in our country to formulate a comprehensive National Housing Policy. sponsored by State Bank of India. People‟s housing problem is now receiving serious attention from both the government and the public. Can Fin Homes Ltd. old dilapidated houses.There are a large number of HFCs but the most prominent among them with sizable equity base and operations are only two viz.96 million units and the total demand for housing is more than 170 million units. This housing shortage requires a whopping Rs.000 crore if the gap is to be bridged. The HOUSING URBAN DEVELOPMENT Corporation Ltd. It needs the co-operation of various agencies and financial institutions Hasmukh Thakoredas Parekh setup Housing Development Finance Corporation Limited in October 1977 and setup Gujarat Rural Housing Finance Corporation Ltd. Now that more banks andinsurance companies have also jumped into the hand wagon. where a majority of tower and middle classes live preciously.. BUDGET SPECIAL IMPACT 2000 .T Parekh writing about a housing society for the Bombay state and he follows this interest through several initiatives till they end up in HDFC. sponsored by Canara bank and SBI Homes Finance Ltd. This shortage is given at a 30 million housing units. LIC and GIC have come up.1. The Gujarat Rural Housing Corporation. encompassing all the elements relevant to shelter development. several HFCs setup sponsored by public sector banks. The housing scenario in India has revealed that more than six lakh people live without a roof on top.. setup by HDFC itself. 50.. housing common toilet facilities. In 1951 itself H. (HUDCO) and the Housing Development Finance Corporative Ltd. only 26 have been approved by the NHB for refinancing. hutment-dwellers. The total housing stock in the country is around 142. Almost 40% of the people living in urban or rural areas have income below the poverty line. The funding of this amount cannot come from the government alone. Out of these 37. old rented premises like chawls. Indian Bank Housing Finance sponsored by Indian Bank. The financing of houses involves a lot of money which is several times the income of the individual. (HDFC). During the last 4 years particularly after the establishment of NHB. It has many facets relevant to different sections of the community. Even among them there are pavement-dwellers. There are around 96 companies in India out of which only 37 have registered themselves with the NHB.. those living in somewhat secured jhopadpatties.
Further.20. Finally. I have identified “Chengalpattu Co-operative Urban Bank Ltd. I have selected the topic “Housing Finance in Chengalpattu by Co-operative Urban bank” to prepare project report as per University of Madras and submit to the authorities as a part of my MBA degree. the detailed analysis of data about the perfprmance of the banks is clearly given in both tabulation form and charts. I have concluded this report with my own views and suggestions accordingly. The detailed procedural aspects of the bank. Government Housing Agencies Central level NBO CBRI Hindustan Pertab Ltd.10. their terms and condition schemes are clearly mentioned in the report.The extension of infra structure status for housing project by another 2 years up to March 2003. Rural Housing Bank THE CONTENTS OF THE PROJECT ARE HEREBY GIVEN IN BRIEF .54 of the Income tax act 1961 investement in second and subsequent houses granting exemption from capital gains. NBCC CPWD TCPOs State level Housing Board Municipal Corporation Improvement Trust Development authority Building centers Regional Research Laboratory National Council for Cement and Slum ImprovementBuilding Materials development method BIS BMTPC Keeping in view of the importance of the infra structure projects like “building ofhouses / plots”.000 to Rs. The extension of sec.000.”. Chengalpattu to prepare my project report. A hike in the limit on housing loans from Rs.
To study the clear picture of housing society c. To analyse the bank operation in the field of housing finance d. Bank profile 3. Analysis and interpretation 7. To give suggestions for the better performance of the bank 4. To find out the attitude of customers views about housing finance e. To find out procedure for sanctioning house loan b. Methodology 5. Findings and suggestions 8. Conclusion .1. Industrial profile about the subject of the project report 2. Objectives of study a. Limitations 6.
INDUSTRY PROFILE .
Most life insurance companies and trust and loan companies as well as charted banks and Quebec savings are lenders under the act. The United Nations General assembly in December 1988 proclaimed the “Global Strategy Shelter to the year 2000” (GSS) Statistics indicate that. the percentage of GSP is estimated to be between 1 to 2. what we need to build is 8 to 10 houses per 1000 persons. Harold Robinson writes “Rural or small town housing may be needed at times to slow down an excessive country to town movement”.CHAPTER – 2 INDUSTRY PROFILE Housing is the key to improve the living standards of the family. In a study prepared by the International Union of Building Societies and Savings Association. investment is housing as a percentage of GNP varies between 3. Another way of looking at this problem. while in India. The guarantee on their investment is provided by CMHC through the operation of a mortgage insurance fund built up from fees paid by NHA borrowers. Chicago. KOREA . to builders constructing houses for sale or for rent and to some special groups such as co-operative housing associations.5 houses are being built. as indicated in a report is that. quantity wise and quality wise. Under these arrangements loans are advanced wholly by the government to lend under the Act. though no such statistics are available. The case housing in the developing countries.5% and 7%. The advanced countries have reached their high living conditions among other reasons. CANADA The present National Housing Act (NHA) which was introduced in 1954 was the principal piece of Federal legislation dealing with housing urban developments. Insured mortgage loans are normally available to individual homeowner applications. This would be a measure of problems in terms of financial magnitudes. 2. HOUSING FINANCE SYSTEM IN SELECTED FOREIGN COUUNTRIES 1. while in India for every 1000 persons 3. This implies that we need to treble our building programmes to take care of population increase and backlog of housing. Each borrower must provide from his own resources toward margin may consist of cash. land or his own labor or a combination of these elements. by means of providing affordable housing. The Central Mortgage and Housing Corporation (CMHC) is the crown agency charged with carrying out Federal housing legislation. The corporation assists construction activity in two ways. Lack of housing in rural areas creates a push to the city equal to that of a city‟s pull and therby creates additional housing problems. in developed countries. by granting the loans made by private approved lenders for house construction and by granting direct house loans under its various schemes. MORTGAGE INSUARNCE FUND Federal assistance for ownership for housing projects built by private entrepreneurs are provided for the most part for the system of mortgage insurance introduced in 1954.
Under one. the subscriber makes monthly installment payment for a certain period to qualify for a housing loan. Under the Korean Housing Bank Act. There are two types of housing installment savings deposits. Advances out of the amount collected by way of lotteries are mainly to the bereaved families of war dead and members of the low income group. through budgetary grants. depositors are paid an attractive rate of interest on their deposits and they are eligible for housing loans. whereas under the other monthly installments are made for the repayment of the principle and the interest on the housing loan already advanced. Finance companies play an important role in development and financing of residential and . The housing and Development Board constituted under housing and development act has been pioneering work in several housing estates with high – rise buildings of flats which are almost in nature of self contained townships. the KHB is required to give loans manage funds for the construction of houses. the Korean Housing Bank (KHB) was setup in 1967 under the KHP act with a total paid up share capital of 5. market borrowings subsidies and rental income from flats. the most important are Housing Development Board and Housing and Urband Urban Development Corporation – both statutory bodies. These banks play a significant role in the Korean economy. Besides there are two other schemes “Welfare housing Installment Deposit Scheme” (WHIDS) and “salary and wage earners fortune formation savings deposit scheme. 3. Te board derives the funds from government. Among the varied savings mobilization schemes. directly linked to the housing loan extension.05 million won. finance compnies plays an important role in financing construction of residential properties. Besides these commercial banks. post office savings banks and insurance companies also make funds available to their customer for housing. The KHB also advances loans to the local government small and medium scale enterprises for the production of low cost housing materials quipments. Under these schemes. which is offered solely by the KHB. and and and and Housing lotteries are issued by the KHB for the purpose of mobilsing funds to finance housing construction on comparatively easy terms. The term and conditions of the bonds are governed by the KHB act. Fiscal and other concessions are offered to the winner of the lotteries. housing installment savings is a contractual savings deposit scheme. In the private sector. One of these banks.In Korea. there are eight special banks for the specified purposes. purchase of newly built houses development of housing sites. The housing and Urban Development Corporation develops housing flats in urban areas and central business districts which are in a very luxury flats for upper middle class and higher income groups. SINGAPORE Among the various agencies engaged in developing / financing of housing in Singapore. The National Housing Bonds are issued in pursuance of the objectives of National Housing Construction Promotion law.
Post Office Savings Banks (POSB) gives 90% mortgage loans to its depositors under its „home ownership scheme‟. Housing loans are given purely on commercial terms. The commercial banks play only a marginal role in providing housing finance. where housing construction has attracted large scale investment since the sixties. with representatives from the building societies. Rent legislations. 4. They extend housing loans only to their selected customers. Primarily due to the fact that the demand for new houses could be satisfied form the existing stocks of houses. in terms of square meters. The insurance companies also advance loans for housing but the amount involved is small and the loans are restricted to the policy holders of the company. A similar plan is also approved with regard to state support for renewal and modernization of existing houses. The plan stipulated the total amount of dwellings and complimentary facilities. The Department of the Environment and the Registry of Friendly Societies needs to be mentioned. SWEDEN Sweden is one of the few countries in the world. Grants to groups of people with limited economic resources or special housing needs. The implementation of housing policy is based on the co-operation and the division of work between the state and the municipalities. 3. The POSB does not grant loan for buying commercial properties. 5. 2. Rational housing production. public and private sectors. not subject to state loans may be permitted. 1. Thus. the role of Joint Advisory Committee (JAC) established in 1973. PLANNING OF HOUSING CONSTRUCTION EACH YEAR THE Ricksdag (parliament) approves a housing construction plan for the next 3 years. The scheme has proved immensely popular. The sources of funds for their activities are deposits accepted from the public. who have other business dealings with them. the Bank of England. HOUSING POLICY The main foundations of Sweden‟s housing policy may be summarized as follows: Well – organized municipal planning. In this context. State aid in the form of loans and grants for the construction and mordenisation of dwellings. 4. 6. for which state housing loans may be granted and the extent to which housing construction.commercial property in Singapore. The Treasury. the growth rate of housing construction has slowed down in the last few years. which indicates proportion of total resources of the society that could be allocated for housing construction. Active municipal land policy. In fact. The JAC‟s objectives are to encourage the growth of owner-occupation to maintain sufficient funds to enable . together strive for the ordinarily promotion of housing activities.
such as Federal Housing Administration (FHA). FHA and VA respectively. to work towards the stabilization of house prices and to maintain an orderly housing market. Accordingly.G1 Home loan and the loan guarantee programmes to guarantee mortgage loans. Life Insurance Companies. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) With the establishment of the FHA. . The „Stand-by Commitment‟ contract provides for the future purchase of mortgage by FNMA. to encourage wider home ownership and to upgrade housing standards in the USA. in 1938 the Federal National Mortgage Association was formed. the first two viz. The Veteran is required to repay the loan in full. Such loans are made after a careful scrutiny of the long term value of the security and the prospective borrower‟s ability to pay. the federal agencies. VETERAN’S ADMINISTRATION (VA) In 1940. Under the „immediate purchase contract‟ the seller offers mortgages for immediate purchases.the housing sector to plan for a high and stable level of activities. the FNMA purchase them after scrutiny. FEDERAL HOUSING ADMINISTRATION (FHA) FHA was established in 1934. These purposes are achieved by insuring mortgage loans made by lenders in accordance with the FHA housing and credit standards. insure and guarantee mortgage bonds whereas the last oone sells mortgage bonds and buys from investors/lenders. The FNMA purchases only marketable mortgages from private institution lenders. which permitted the Veterans Administration (VA). such contract is known as „Over the Counter Transaction‟. Its main objectives are to provide a sound pattern of mortgage lending. The FNMA is also authorized to borrow funds privately by issuing debentures and short term discount notes with the approval of the US treasury but they are not guaranteed by the US government. the Veteran‟s Administration (VA) and Federal National Mortgage Association (FNMA) have made significant contribution in the development of the mortgage market. the congress passed a legislation. There are generally two types of purchase contracts. The guarantee is payable by cash. USA The major financial institutions such as Commercial Banks.. the need for an agency to distribute the mortgage money on national basis arose. the outstanding is deducted from any future benefits that he may receive from the Veteran‟s Administration. In case of default. Savings & Loan Association (SLAs) and Mutual Savings Banks provide funds for construction activities. 5. under title III of the Act .
It is the principle agency to promote housing finance institutions at the regional and local levels and to provide financial and other support to such institutions connected with housing and human settlements. under the National Housing Bank Act 1987 as an apex bank. shares. SLA‟s are chiefly concerned with the welfare of the savers and their concern is prompted by the need to secure funds to support home financing and home ownership. To subscribe to purchase stocks. It has grown in volume and depth with the entry of a number of specialized financial institutions / companies in the public. 2. . bulk of the mortgage bonds are subscribed by Savings and Loans Association (SLA) followed by Commercial banks. 4. NATIONAL HOUSING BANK The NHB was established in July 1988. 1. HOUSING FINANCE SYSTEM IN INDIA The responsibility to provide housing finance largely rested with the government of India till the mid-eighties. The setting up of the Ntional housing Bank (NHB). on the lines of IDBI and as a wholly – owned subsidiary of the RBI. To promote. 3. To make loans and advances or render any other form of financial assistance whatsoever to housing finance institute scheduled bank 3. a fully owned subsidiary of the Reserve Bank of India (RBI) in 1988 as per the apex institution marked the beginning of the emergency of housing finance as a fund based financial service in the country. bonds debentures and securities of every other description 4. The amount of laws and advances and other credits facilities The nature of security taken for such loans The guarantees furnished Any other having a bearing on the credit worthiness of the borrower. To guarantee the financial obligation of housing finance institutions and under write the issue of stocks and share bonds. debentures and securities of every other description of housing. although it is an early stage of development. 2. OBJECTIVES AND BUSINESS 1. support or aid in the promotion establishment and support of housing finance institutions. establish. Life Insurance Companies and mutual savings banks. private and joint sectors. POWER TO COLLECT CREDIT INFORMATION The housing finance institutions can be directed by the NHB to submit specified credit information.SAVINGS AND LOAN ASSOCIATIONS In the USA.
LIC Housing Finance Ltd. India Housing Finance and Development Ltd. HDFC Ltd. FIANACIAL ASSISTANCE FORM NHB TO HFCs NHB has so far approved 17 HFCs (excluding HUDCO) as eligible to draw refinance from it. 5. 3. Ind Bank Housing Ltd. the target group of institutional housing finance is individual households. Parshwanath House Finance Corporation Ltd.100 crore respectively as long as HFCs owe any money to the NHB. They must confirm to these guidelines to be eligible for financial / refinance support from the NHB. HFC should list shares on at least one stock exchange. 4. Canfin Homes Ltd. 8. 13. SHARE CAPITAL NORMS The minimum capital of the HFCs registered share with the NHB must be 3 crores. The NHB in its direction and on the merits of each is willing to participate in the share capitl of HFCs to the extenc of 20% of their paid-up capital. . 7. 1. The contribution of the promoters to their share capital should be in conformity with the guidelines issued by the Securities and Exchange Board of India (SEBI) from time to time. According to these. 6. AB Homes Finance Ltd. There are 21 HFCs in the country which are registered with the NHB as the apex institution housing bank with statutory obligation to regulate and supervise the housing finance industry. 2. Cent Bank Home Ltd. Dewan housing Development Finance Ltd. TARGET GROUP The bulk of lending by the HFCs has to be directed to individuals / groups of individuals. 12.NHB GUIDELINES NHB has spread operating guidelines for the HFCs in India. 10. In other words. Akshaya Avas Niraman Villa Ltd. As at the end of June 1992 the HFCs which have been approved for the purpose of reference. In addition. HFCs must offer at least 20% of equity capital to the public as a condition present to listing of shares on stock exchanges. Gujarat Rural Housing Finance Corporation Ltd. 11. such contribution must be 25% and 20% of the post issue capital up to Rs. Fair Growth Gome Finance Ltd. Cent Bank Home Ltd. LOANS LENDING NORMS The main objective underlying the promotion of NHB supported HFC is to extend access of industrial finance to provide a solution to the serious shortage of dwelling units. 9. According to NHB stipulations.
9 3.2 Urban 35.1 71.2 TOTAL 151. The figures are exclusive of Assam 74.4 3.1 2.1 3.8 3.40 92.63 0.14.44 11661.6 3.2 0. Saya Housing Finance Company Ltd. These census houses includes residential dwelling mixed (resident cum commercial dwellings and commercial houses) TABLE 1 CENSUS HOUSES AND RESIDENTIAL DWELLING (in million) Year / Area 1 Census Houses 2 Residential Total 3 Dwelling Mixed 4 3/2 % 5 4/3 % 6 1971 Rural 96. LOANS AND ADVANCESS GIVEN BY NHB FOR THE YEARS 1991-92 & 1992-93 PARTICULARS HFC Co-operative Housing Society Commercial Banks State Co-operative Banks Urban Co-operative Banks State Co-operative Agricultural Rural Development Others TOTAL 1991-92 951.9 73.4 75.98 32.39 13.88 0.8 75. 16.2 18.64 1992-93 1283.75 57.8 27.4 73.1 111.6 4.10 71. Vysya Bank Housing Finance Ltd. SBI Home Finance Ltd.20 91.3 84.7 TOTAL 120.73 2.63 The National Sample Survey Organisation (NSSO) has been collecting certain data on housing since the mid fifties though not as a regular feature.8 4.8 1981 Rural 115. 17.3 90.56 1571. The latest surve worth mentioning is the comprehensive survey on “Housing conditions carried out by NSSO in both rural and urban areas during its 44th round ( July 1988 to June 1989) HOUSES AND RESIDENTIAL DWELLINGS The house list as per 1981 census shows that there were 151 million censuses of houses of which more than three fourth were in rural areas.1 Urban 24.29 2.9 2. PNB House Fin Ltd.0 1. 15.35 64.2 74.9 2.9 .57 68.4 Source: census of India.
8 2001* 986.4 of 1998 Report of the Expert committee and population projection SLUM POPULATION TO URBAN POPULATION 17.0 116.8 Others 11.7 28.6 52.3 241.2 14.1 Chawl 3.2 159.6 TOTAL 100 100 Source: National sample survey organization 44th round survey.5 51.TABLE-2 DISTRIBUTION OF HOUSEHOLDS BY TYPE OF DWELLING – 1989 (percentage) TYPE OF ALL INDIA ALL INDIA DWELLING RURAL URBAN No.3 1991* 837. TABLE-3 TREND IN URBANISATION (in million) YEAR TOTAL URBAN SLUM URBAN POPULATION POPULATION POPULATION POPULATION TO TOTAL POPULATION 1981 685.0 28. Dwelling 0.7 17.0 NA 33.1 Projections @relates to 1990 Source: census of India 1981 – occasional paper no.8 100 TABLE – 4 QUALITY OF HOUSING STOCK Dwelling 1961 1971 Type Rural Urban Total Rural Urban Total 65.5 93.1 19.5 18.7 27.9 23.4 Flat 2.2@ 28.7 21 38 29 65 24 11 32 34 25 12 0 10 .1 79.1 31.0 10.3 -CITIES POOLED -21. August 1988 1987 Rural Urban Total 88.7 19.0 0.3 74.1 Independent Houses 82.1 326.5 21.0 Total Housing Stock (in million) 46 19 19 64 28 Of which % pucca 13 house 37 35 36 37 23 34 Semi pucca 38 19 35 32 13 28 Katcha House (including serviceability) 12 0 10 12 0 10 Unserviceable houses Source: National Buildings Organization Housing Needs.
National buildings Organisation. 5.7 106. NBO & UN Regional Housing centre for ESCAP Nirman Bhavan. TABLE – 6 PUBLIC AND PRIVATE SECTOR INVESTEMENT IN HOUSING (Rs.1 Rural 1991 113.2 148. specially for the purpose of financing housing and urban development programmes.5 6th 168148 180000 349148 2458 29000 31458 9.8 92.8 Housing stock 111.6 64. as a fully owned Government of India Enterpirse with the following objectives: 1.3 30. of households Households adjusted for registration 88.5 206.2 127. To administer the money received from government of India and other such grants for the purpose of financing or undertaking housing and urban development programmes.7 36.7 101.9 16.7 Urban 1991 2001 45.6 209. Development Authorities etc. 4.0 10. To subscribe to the debentures and bonds to be issued by the State Housing Board.0 1981 29. To finance or undertake the setting up of the building materials industries.8 28.2 1981 123.6 129.3 5 90000 66000 156000 1491 18000 19491 12.5 113. Improvement Trusts. To finance or undertake the setting up of new satellite towns. New Delhi – 1990.6 168.0 47.0 137.TABLE – 5 HOUSING SHORTAGE (in million) Items 1981 94. 3.4 4 th 31400 16161 47561 796 3460 4436 9.5 23.0 7th Source: Prominent Facts of Housing in India.6 25.7 56.9 3rd th 13655 6890 22635 652 2175 2800 12.2 31.2 1st nd 3650 3100 6750 300 1000 1300 19. To provide long term finance for construction of houses for residential purpose or undertake housing and urban development programmes in the country.5 Housing Gap (2-4) Source: Housing Needs.4 124.0 No. 2.3 Total 1991 2001 158. Public Private Total HOUSING AND URBAN DEVELOPMENT CORPORATION (HUDCO) HUDCO was established on 35thApril 1970.0 160.3 20.4 15.2 2 6100 3400 10400 425 1125 1550 14.5 7.5 23.8 116.0 41.8 192. Crore) Plan Period Total Investement in the economy Investment in housing % of housing investment to total investment Private Total Publi c 1560 1800 3360 250 900 1150 34. Aug 1988.1 94. .0 69.1 72.0 42.5 2001 137.7 Of which acceptable 77.
47 crores and Rs. making a jump of 33.82 lakh housing units.7432 crore has already been released. Up to the end of March 95. it has been sanctioned over 11.25% .1.116 crore. the sanctions are expected to be out of the order of Rs. This was done through a basket of options covering both domestic and external funding sources. the corporation registered a quantum jump of 43.2162 crores for taking up about a million housing units in our country. HUDCO‟s assistance now reaches out to 6.27% in profit after tax.4400 crore.8230 crore and disbursements would be above Rs.69.RESOURCE BASE HUDCO establishes with an equity base of Rs. 2 crore. vis-à-vis all other housing agencies this represents more than 25% of HUDCO‟s loadn sanction of Rs.298 crore reserves Rs.1164 crores from HUDCO.67 crores.577 crore for which HUDCO‟s loan committee was Rs. HUDCO has extended loan assistance to the co-operatives to the extent of Rs. During 1999-2000 HUDCO mobilized the resources worth Rs. The salient features of the schemes for the three categories are listed as follows. up 18% from Rs.298 crore as against the authorized capital of Rs. In its maiden effort to raise funds from the US markets. The present paid up of capital HUDCO is Rs. 166 crores for supporting about 6.5% during 1999-2000 over last year‟s performance of Rs. It has further been able to mobilize resources from institutional agencies like LIC.10. corporate holders and promoters and developers.8899. As per te provisional results for 1999-2000.60 crores HUDCO has initiated action for raising the second tranche of $20 million from the US capital market under this scheme.3836.3 lakh sanitation with and 319 urban infrastructure projects.43 crores. 83.18 crores and Rs.115. The cumulative resource of equity Rs.43. Over the years.041 projects worth Rs.4271 crores to Tamil Nadu HUDCO slashes interest rates on housing loans to 0. HUDCO has contributed an amount Rs. HUDCO vision – 2002 – sanction for Rs. Eighth Plan period.25%.89 crores. The funds have been swapped with EXIM bank for a period of 30 year for Rupee funds totally Rs.80 lakhs families through the Tamil Nadu co operative Housing Federation. the equity base has been expanded by the government. The project on completion will help provide over 57 lakh residential units over 4 lakh developed plots 29. 16. of which Rs. .71 crores for 1989-99.13% in profit before tax and 20.84 crores respectively against Rs. UTI banks and international assistance as well as through public deposits. borrowings Rs. which has availed the highest loan of Rs.14746 crore and release Rs. The figures are Rs.367 crore. the corporation ahs achieved all time high sanctions of Rs. GIC. 3240 crores in the previous year. SBI FINANCE SCHEMES SBIHF provides housing finance to individuals.80.385 crore.12534 crores.6666. Elaborating on the HUDCO‟s yearly performance.5551 crores. the corporation raised $10 million in the form of bonds under the USAID housing guarantee programme.
SCHEME FOR INDIVIDUALS The loans are granted for construction of houses. the largest in the industry. construct or purchase or upgrade any house. For 1995-96 the company had projected a total income if Rs. The mode of repayment is normally Equated Monthly Insurance (EMI) comprising principal and interest. The period of loan is based on the cash flow of the project. The repayment period is 5-20 years. 1640 crores borrowings from LIC amounter to as much as 90%. 70% . For the six months ended September 1995. out of the total funds of Rs.150 crores and annualized per share earnings Rs. does not exceed 24 months.5. the total income was Rs. Loans to their employees nominated by them (scheme C) LIC HOUSING FINANCE It has access to low cost funds obtained from its parent – Life Insurance Corporation of India and has in the 7 year since its incorporation not raised funds through public deposits. purchase of house/flats and repairs. building. It however. The company has a widespread branch network of about 60 offices.00.000 or 80-85 percent of the project cost including the cost of land. SCHEME FOR CORPORATES The size of housing loan in all the scheme is the lower of Rs. IND BANK HOUSING LIMITED It was incorporated in 1991. additional/alteration of existing houses/flats. flat or any part there of India for residential purpose.85% of the cost including the cost of the building 3. In any case. for construction of residential housing projects. the performance for 1994-95 has fallen slightly short of projections. As of March 95. Repayment . 10 lakh 2. The company accessed the capital markets with the premium IPO (issue price Rs. the loan must be repaid retirement of the individual – borrower or 65 years of age whichever is earlier.5. Its objectives are to carry on the business of providing finance to eract. with the balance from National Housing Bank (NHB)aand deposits under the NHB home loan account scheme.356 crores and an earnings per share of Rs. The SBIHF has designed 3 alternative schemes for lending for houing to corporate bodies / for construction / purchase of staff quarters of their own employees (scheme A) ii.60) in September 1994.94. The quantum of loan is the lowest of 1.81. 6. renovation extension. SCHEME FOR PROMOTERS AND DEVELOPERS The purpose of housing loans given to this category of borrowers is an additional sources of finance to supplement their resources. i. It was a joint venture of Indian Bank and HUDCO. For on – lending to their employee is accordance with their own housing scheme (scheme B) iii. Rs. A sum based on the repayment capital of the borrower as assessed by the SBIHIF.
68 92-93 42. licenses issued during the period June 98 – march 99 were 21. no response from the proposed banks and 77 were rejected. The number of offices increased to 5934 as on 31/01/1998 from 5417 as on 31/03/1998.172 CO-OPERATIVE BANKING REGISTRATION / LICENSING OF NEW PRIMARY (URBAN) CO-OPERATIVE BANKS The policy towards alowing new Primary Co-operative Banks (PCBs) continued to be liberal depending upon the necessity and the prospects of achieving viability within a specified time frame. PERFORMANCE OF THE BANK Year Housing Loans (in crores) 91-92 18.14 95-96 136. BANKS The total of PCBs including salary earner type of banks increased to 1936 as on 31/03/1999 from 1811 as at the end of 31/03/1988.34 97-98 149. housing boards etc.399 2. The first set of comprehensive guidelines for these co-operative banks were issued in 1984 by the RBI cooperative banks finance individuals. Institutions Primary cooperative Banks Items Numbers Owned funds Deposits Borrowings Loans Outstanding 1992-93 1. District Central Co-operative Banks (DCBs) and Primary Co-operative Banks (PUCBs). During the year licenses were issued to 126 new Urban Co-operative bank for the commencement of banking business. co-operative group societies. 3 proposals were closed.796 496 12.12 93-94 63. 218 fresh proposals including 25 conversion proposals for setting up of new primary Co-operative banks were received by bank. who undertake housing projects for EWS.132 1993-94 1.723 16.531 565 10.of housing loans is by way of Equated Monthly Installments (EMIs) comprising of principal and interest. During the period July 1998 – june 1999. LIGS and MIGS.224 13.42 96-97 147. OF OFFICES OF PRIMARY URBAN CO-OP. NO.26 CO-OPERATIVE BANKS The co-operative banking sector consists of state co-operative Banks (SCBS).40 94-95 92. .400 2. Ind Bank performance highlighted from the year 91-92 to 97-98. Of these 107 proposals were cleared for registrations.
who have voluntarily joined together to achieve a common economic and through the formation of a democratically controlled business organization. four more special awards have been bagged by the federation in the “ALL INDIA LOW COST HOUSING COMPETETION” .58. banks 2.40 NATIONAL AWARD The Tamil Nadu Co-operative Housing federation is the only co-operative Housing Federation in the country to win sixth time: „HUDCO NATIONAL AWARD‟ for all round excellent performance for the year 1992-93. making equitable contributions to the capital required and accepting a fair share of risks and benefits of the undertaking.146.59 2.CO-OPERATIVE HOUSING SOCIETY Tamil Nadu Co-operative Housing Federation has completed 40 years of its useful service to the public.31 1.77 100 LOANS DISTRIBUTED TO PRIMARIES A sum of Rs.67 48.77 crores.81 747.40 crores have been disbursed upto 15/03/2000 for construction of 10.127 7.70. According to ILO Co-operative is defined as an association of persons usually of limited means.1 society Agricultural & rural 71. 1994-95. S.849 10.79 40. The total amount distributed by NHB to the Co-operative sector up to the end of 1992 has been Rs.2763. of Houses 2. Their 40th annual general body meeting of federation is being held on 30th March 2000. In view of the excellence performance.6 Apex co-op Housing Finance 58.28. 1993-94.5 Urban co-op.00 9. In crores) Share in % State co-op. 1997-98 and 1998-99.976 Loan distributed (in crores) 2.No Scheme 1 2 Urban Housing Rural Housing TOTAL No. 1995-96. The share of the 4 different categories of co-operative sector and institutions has been as under: Category Amount (Rs. the Tamil Nadu Co-operative Hosing Federation has been adjusted as the “BEST MANAGED APEX COOPERATIVE HOUSING FEDERATION” in the country by the National Co-operative Housing federation and given the “NATIONAL AWARD” for 1994-95. banks 14.8 development Banks TOTAL 146.763. Besides. The Tamil Nadu Cooperative Housing Federation is the only federtation in the country disbursing a highest amount in the co-operative sector.28.015.976 houses under urban and rural housing scheme a detailed below.
On mortgage of the house properties To acquire land and make into house plots Area of operation of the society is Chengalpattu Municipal limit and upto the area of all village panchayat limits and up to the area of the village panchayats lying within the radius of 10km from the municipal limit.ft 55 sq.00.000/(corporation and Municipal) Source: Housing Society Annual Reports. 2nd floors and additions.ft 6.000/2.5 sq. – CHENGALPATTU Objects of the housing society are: To issue land to members for constructions of new house 1st. In crores) 430.687 crores as detailed below: S.000 7.00 256.5 sq.COST HOUSING COMPETETION Programme for 1999-2000 It was proposed to provide financial assistance to an extent of Rs.6 lakhs in the other places. area of the building to be constructed as given below: LOANS ISSUED ON THE BASIS OF INCOME AND AREA S.000/(in village panchayat and municipal area) 5 HIG – B Above 10. Loans issued to members on the basis of their income.00. of Units 1 2 Urban Housing Rural Housing TOTAL 42.ft 190.ft 95 sq.m 377 sq.82 686.000/Area of the building 35 sq.m 2000 sq.m 2000 sq.m 592 sq.678 1.000/1.678 Loans to be Distributed (Rs.ft 190.000 Maximum Loan amount 25.7 lakhs in the municipal limit and Rs.m 1022 sq.No Group 1 2 3 4 EWS LIG MIG HIG – A Monthly Income Below 2100 2101 – 4500 4501 – 10.00.No Scheme No. Maximum loan issued to a member is Rs.82 CO-OPERATIVE HOUSING SOCIETY LTD. .04.000 62.000 Above 10.00.
00.32 169.43 116.5 11.000 – 5.53 1996 – 97 683 30.39 48.59 1994 – 95 773 23.5 1.23 120.000 10.000 14. .000 16 17 5.00.00.19 47.5 16.00.RATE OF INTEREST OF HOUSING SOCIETY Loan Amount Rate of Interest Borrowing Lending 25.39 136.5 1.00.44 102.000 – 7. of houses Outstanding constructed 225/13 240/15 259/22 329/77 412/76 533/80 659/03 983 1035 1140 1210 1312 1437 1531 Share Loan capital borrowed (lakhs) (lakhs) 1993 – 94 776 22.001 – 3.45 44.85 1998 – 99 794 45. of members PROGRESS OF HOUSING SOCIETY Loan distributed (lakhs) 45.82 1997 – 98 744 36.94 31/12/99 857 53.000 15.49 45.53 174.5 15.55 42.5 3.000 17 18 Source: Housing Society Annual Reports TABLE – 7 Year No.42 163 Loan No.36 Source: Housing Society Annual reports.68 103.00.00.28 1995 – 96 757 25.
BANK PROFILE .
DEPOSITS The bank received Fixed Deposits. b.5. OBJECTIVES The main objectives of the bank are: a.11 lakhs as share capital.39 lakhs from 10602 „A‟ class members Rs.5% and for savings deposits it is 5.1910 and it started to function from 26. it gives loans on the deposits invested. Amount ( Rs.10 on 31.1.01. it covered the entire area of Chengalpattu Municipality. Hanumanthaputheri and Pulipakkam villages. the rate of interest is 12. customers. Collecting cheques and demand drafts from the members.72 lakhs from 21932 „B‟ class members.5%.32 1402.5% and for recurring deposits it is from 11% to 12. c.000 at the interest rate of 18%.42. This bank also issuing loans for small scale industries.25 while for „B‟ category its value is Rs.05. STRUCTURE OF THE SHARE CAPITAL The banks is having „A‟ class and „B‟ class members and in the case of „A‟ class category each share value is Rs. Similarly. SCHEDULE OF DEPOSITS AS ON 28. In the case of Fixed Deposits maximum. savings Deposits and current Deposits. housing loan is granted maximum of Rs. Getting deposits from the members as well as non-members and distributing the same as loans for productivity purposes among its members.40 17.00. 1. This indicates the share capital of Rs.000 at the interest of rate of 19%.00.CHAPTER 3 THE CHENGALPATTU CO-OPERATIVE URBAN BANK LIMITED PROFILE The Bank was registered on 6. issuing cheques and demand drafts to the members and customers.000 at the rate of 19%.10.1910.70 200.42 . Encouraging self-sufficiency.01. In lakhs) 1184. thrift and co-operative spirit among its members. Further. subjected to a maximum of 75% of the deposit amount.44. Recurring Deposits.06. cottage industries and for businessmen on security.2000 Item Fixed Deposits Savings Deposits Current Deposits TOTAL LOANS It offers loans on jewels subject to a maximum of Rs.2000this banks was in possession of Rs. It also offers loans for the monthly income group on personal surety upto Rs.
33 This bank has opened one branch at Alagesa Nagar and another branch at Natham. TOTAL INVESTEMENT OF THE BANK AS ON 28. The recovery position is very good.27 43. 5.SCHEDULE OF LOANS SANCTIONED 31. board od directors and staff are very much interested in collecting the micro credit loan without any overdue amount. The members loan amount is Rs. 9. ITEM Current account Savings account Fixed account Indra Vikas Certificate Kissan Vikas Certificate Reserve fund Share capital of coop.No 1. Both branches are working well on profits and saving the people.02.14 740. societies Cash certificate Other investments TOTAL Amount (Rs. The president. 4.2000 (Rs.42 0.1000 repayable in 100 days. 7.50 0.60 3.70 4.47 14. 3.63 628.17 0.10 266. In lakhs) Jewel loans Mortgage loans (including Housing Loans) Others 253.90 2. We have only 1% of overdue. salaried people and for business and industrial community loans are given on guarantee basis.2000 WAS AS FOLLOWS: S. 2. 8. in lakhs) 56. 6.85 For the depressed classes.01. . MICRO CREDIT LOANS Under the loan scheme so far 170 loan are issued to the women during business.
In lakhs) 9.58 323. THE CHENGALPATTU CO-OPERATIVE URBAN BANK GROWTH 1400 1200 1000 800 Deposits 600 400 200 0 1993 1994 1995 1996 Year Loans 1997 1998 1999 .66 1995 7487 21997 16.29 13. In lakhs) Loans (Rs.34 1209.00 11.19 5.67 Source: compiled from the record of the Urban Co-operative Bank.71 615.30 889.69 324.67 1996 8080 21957 19.49 1994 7735 22028 14.84 259.27 10.62 A B 1993 7283 22110 12.72 1998 9470 21936 31.97 Profit (Rs.93 637.88 1999 10086 21932 39.38 272. In lakhs) 193.03 820.THE CHENGALPATTU CO-OPERATIVE URBAN BANK LIMITED TABLE – 8 Year BANK’S GROWTH IN THE LAST 7 YEARS Members Share amount (Rs.62 238.01 8.49 433.27 2.17 1997 8829 21947 24.57 467. In lakhs) Deposits (Rs.11 216.
ORGANISATION CHART Board of Directors Managing Director Secretary Assistant Secretary Manager 1 Manager 2 Appraiser Assistant Assistant Typist Assistant Assistant Typist .
RESEARCH APPROACH Survey method was used to collect primary data from the customers of the bank.3 = 0. Likert scales were also included so as to measure the attitude and opinion in certain cases. Primary Data: Survey of customers in Chengalpattu area.7 standard deviation σ = = = = 0. Secondary Data: Bank records.CHAPTER – 5 METHODOLOGY DATA COLLECTION METHOD DATA SOURCE Primary and secondary data were used for the purpose of study.3 q = 1 – p = 1 – 0. p = probability of occurrence = 0.145 ( ) ( ) . Since research inferences were of great importance to building and other activities a plot was done on 10 people to design the correct questionnaire contains open ended questions and multiple choice questions. The pilot survey showed that 3 out of 10 respondents has availed the facility of housing finance. newspapers and Governemnt of India Census reports. journals. RESEARCH INSTRUMENTS a questionnaire method was applied to extract the required information.
The respondents were met at their residence and also from bank. From the list of the custiomers. METHODS OF DATA ANALYSIS Data collected was analysed systematically.145 / 0.96 So the survey is conducted for 200 samples.02 ) = 0. The addresses of the customer were collected from the bank.145 / 0. FIELD WORK The customers were met personally and the answer of the questions were marked by the researcher.Organization has permitted an error level of 0. Pie diagrams are used for their easy understanding of the analysis.21 Z = 0.02 / (0.02 / 0. the respondents weer selected according to the conveniences of the researcher. Tables were prepared on the basis of simple percentage Likert scales made with respect to some aspect and presented along with the respected table.96 Z = error / (standard deviation of sample/√n) √n = Z x standard deviation of sample / error √n = 1. DATA COLLECTED METHOD The method of contact used in this study is personal interview based on structures questionnaire.96 x 0. SAMPLING DESIGN I have selected convenience sampling as my sampling technique.02 = 14. .0102 = 1.02 at 95% confidence level z = 1.
. The study has limited scope it suffers from certain limitations.CHAPTER – 6 LIMITATIONS OF THE STUDY 1. 6. there is a chance for the date being biased. since it was limited to Chengalpattu urban bank only. 3. The difficulty in gathering information from the respondent. Questionnaire has to be translated in Tamil. This survey need not be representative one for all co-operative urban banks. 5. Selected sample sizes of customers due to unavailability of time and resources. 2. Survey was done to a limited number of dealers which were selected by sampling . 4. The conclusions arrived are based purely on the respondent‟s responses.
ANALYSIS AND INTERPRETATION .
If the quantum of the loan is the lower amount arrived on the basis (i) or (ii). ELIGIBILITY: Individuals requiring housing loan from bank should satisfy the basic two conditions. 1. iv. Those belonging to Economically weaker sections (EWS). . Those holding land and capable of liquidating the loan within the stipulated time. Those purchasing residential flats from State Housing Boards / Co-operative Societies / Private Builders etc. Those belonging to Scheduled Castes / Scheduled tribes who have been allotted land by the government. The quantum of the loan is determined on the basis of two different parameters: i. Individuals eligible for housing loans from the bank fall into 4 categories namely. ii. He should be the permanent resident. Renovation/repair to the existing house/flat Construction or purchase of a new flat / house within local limits. The eligibility of the quantum of the loan is arrived at in a manner that the installment doesn‟t exceed 30% of the net take home income of the borrower. middle and high income groups. ii.CHAPTER . low. iii. The individual should belong to Chengalpattu town. He should be the member of the bank Housing loans shall be granted to the persons for the following purposes by virtue of provisions contained in the co-operative urban bank regulations.7 ANALYSIS AND INTERPRETATION OBJECTIVE I: TO FIND OUT THE PROCEDURES FOR SANCTIONING OF HOUSING LOAN. i. 2. On the basis of income of the borrower. On the basis of estimated cost of construction on repair The second parameter is based on the estimated cost of construction less necessary margin requirement. 3. PROCEDURE FOR SANCTIONING LOAN. the loan amount is further subjected to a ceiling of 5 lakhs.
the interest rate and the amount of monthly mortgage payments fixed for the entire terms of loan.400 towards : Application Rs.000 1.50 legal & survey etc Rs. SCRUTINITY OF APPLICATIONS The person/individual requires loan from the bank shall submit an application form duly filled along with the necessary enclosures (mentioned in annexure) by paying Rs.000 2.The rate of interest is charged to the amount of loan.00. The monthly installment consists of the principal repayment and the interest on outstanding principal and is given by: In case of default additional interest of 2% more than the normal rate of interest shall be charged on the defaulted installment every month.000 to 2.00.000 SECURITY The normal housing loan as mortgage of property from the proceeds of the loan.00.00. bank do not finance the full cost of the house and the owners / borrowers have to bring in the margin from their own resources as part of the cost however the bank will fix the loan money at the discussion of the Board on case to case basis. 18% 18.000 to 5. .5% 19% MARGIN REQUIREMENT In general. REPAYMENT The loan is repayable in Equated monthly installments (EMI) in a maximum period of 6 years.350. The term of the loan. Presently bank charge exclusive of income tax Upto Rs.1.00.
After satisfying the necessary formalities the bank will first disburse 50% of the loans sanctioned.ENCLOSURES WITH THE LOAN APPLICATION Bond Rent recipt Encumbrance certificate Land tax recipt Pay certificate Other sources of income Construction or alteration estimate After receiving the application. For closing accounts the bank will calculate interest as on date and other postal and printing chargers added with principal amount and that the total amount will be treated as principal amount. reminding repayment of the installment to the customer and will close the customer‟s account. the bank will verify and check the details and forward it to their legal opinions. If he cleared the overdue principal amount then the normal interest rate only applicable. After the decree the interest rate will be the normal rate will be +2% penalty rates and this rate will never change even if he paid his overdue principal. Then the bank will send a notice by registered post acknowledgement. The bank will deduct 2. The interest will be paid on this deposits 14% per annum. The balance amount will be released once the loan was utilized properly. bank will file a suit for arbitration by sending a notice to the customer.5% towards margin from the loan amount sanctioned and will be kept as a deposit. interest rate will be the normal interest + 2% penalty interest. the bank manager will sanction the loan amount to the customer. After sanctioning the loan and before the disbursement of the first installment the customer is asked to mortgage the property in favour of the bank as a security against the loans sanctioned. After ARC if the customer pays the interest regularly and cleared all his overdue means the DR will decree the customer. After getting the approval from the board. The legal advisor shall forward and to the end of the bank about the genuine of the application. After due verification of the suite field by the bank the Deputy Registrar will register the case against the customer and send summons to the defaulter for 3 times. Then the application shall be put-up to the notice board for discussion and approval. TREATMENT OF DEFAULT CASES The customer who fails to pay their installment due for continuously more than 6 month or installment which is due more than 6 months. This interest will remain same up to the clearance of the overdue principal. . If the customer fails to pay. For this principal. the customer will be treated as a defaulter.
the next step is Execution Petition (EP). Then the customer not paying the overdue for the long time and the customer is not responding means. TERMS AND CRITERIA FOR THE AUDIT CLASSIFICATION OF THE COOPERATIVE BANKS IN AUDIT Audit classifications are to be arrived at on basis of the aggregate marks secured indicated below 1.20% Between 10% .10% ** increase MARKS 10 8 5 1 nil 2.15% Between 5% .50% Less than 40% MARKS 10 7 5 nil .The next step decree is property attachment. This means that the customer cannot do anything in the property without the banker‟s knowledge. PERFORMANCE UNDER PRIORITY SECTOR Percentage of priority sector advances to total advances at the end of the year 60% and more Between 50% . If the auction sale amount is less than the overdue amount of the customer then recover the whole money for the bank and balance should be collected from the customer.60% Between 40% . DEPOSIT MOBILIZATION Increase in total deposits over the previous year INCREASE 20% and more Between 15% . DR will send sale officer to the customer and they announce the auction of the property and this auction will be informed through advertisement in the newspapers and the bank notice board. Then an on date interest will be calculated and added with overdue principal then from the action sale they will take the money due and the balance returned to the customer.
. If surplus noticed in cash reserve and/or liquid assets over and above the optimum level for a long stretches of period and for more than 10 occasions. RECOVERY PERFORMANCE Percentage of overdue to loans and advances outstanding at the end of the co-operative year. 25% and more Between 15% . Maintenance of cash reserve/liquid assets below the optimum level throughout the year. LOANS AND ADVANCES The bank should have certain loan rules properly or its local policy should have been incorporated in its by laws duly approved by the Registrar of Co-operative societies. Between 5% . 3.Percentage of weaker sections advance to total priority sector advances at the end of the year.25% Between 25% .25% Less than 15% MARKS 5 3 nil 3. MANAGEMENT OF FUNDS 1. 2.30% Above 30% MARKS 12 10 8 5 3 nil 4.20% Between 20% .10% Between 10% . Surplus over the optimum level either under cash reserve or liquid assets or both sporadically observed for a short period not exceeding 10 occasions in a year.15% Between 15% . RESERVE/PROVISIONS TO COVER EROSION IN THE VALUE OF ASSETS 100% 50% Less than 50% MARKS 5 3 nil 5. 7. MAINTENANCE OF CASH RESERVATION ASSETS Cash reserve Liquid assets MARKS 5 3 6.
s working.8. The modeling of the board/committee/general body held regularly. c. 2. 4. d. Proper systems of internal checks and branch control introduced and observed. Proper systems for recruitment of qualified staff and their training procedures. OPERATION EFFICIENCY 1. Compliance with RBI directions. EFFICIENY OF MANAGEMENT 1. 3. 2. WORKING RESULT 1. 4. 3. Loans and advances. b. Deposits. The bank cost of management was not more than 2% of its working capital or 30%. The bank has strained norms of viability in respect of a. 2. 9. Submission of satisfactory compliance on or before due date to the inspection report of RBI and to last audit report 10. No default in the repayment from higher finance agencies. 5. The banker has earned profits. Paid up share capital. No default in the submission of various returns prescribed under the regulation act 1949 and the state co-operative housing societies act throughout the year. AUDIT CLASSIFICATION Depending upon the aggregate marks secured by the banks audit classification made on this basis of following Marks Secured 60% and above 45% and above but below 60% 30% and above but below 45% Below 30% Audit Classification A B C D OBJECTIVE 3 TO ANALYSE THE BANK OPERATION IN THE FIELD OF HOUSING FINANCE . The bank has declared a reasonable dividend 4. Proper maintenance of books of accounts. The bank has made appropriate allocations to various resrves/provisions 3. Regularity in interviewing the bank.
Urban co-operative banks can give loans only to their customers.24 crores during 1998 – 99. However. It shows the tremendous performance of the bank in sanctioning housing loans. when there was a sudden jump in the year 1995 – 96 of about 16% more than the previous year and so on. urban co-operative banks also play useful role in the provision of housing finance unlike commercial banks. .89 Source: compiled from the records of urban co-operative bank From the table observed that the bank has sanctioned housing loans 17.211.67 36.24 578.61 lakhs.Apart from district and central co-operative banks which provide mainly bridge finance to primary housing co-operative societies.67 lakhs during 92 . Due to liberalization in economic policies such as importance and encouragement of infrastructure projects like housing and other income tax benefits attracts the public more and more.80 62.52 31.40 203.65 during 1997 – 98 and Rs.65 211. Keeping in view the competition in the market and the potentiality the bank has received this policy in order to attract the people and consequent. In lakhs) 1992 – 93 1993 – 94 1994 – 95 1995 – 96 1996 – 97 1997 – 98 1998 – 1999 TOTAL 17.61 15. The Chengalpattu co-operative urban bank for the last 7 years were analyzed and the details given below. For the year 93 – 94. There was a tremendous response from the public. there was a competition in the bank in the market.93. As a result the bank could achieve substantial jump in sanctioning the housing loans to the extent of 203. Years Housing loans (Rs. it sanctioned about 36.
1998 -99 98 Housing loans 52(C) .Performance of Chengalpattu Co-operative urban bank 250 200 150 100 50 0 1992 93 1993 94 1994 95 1995 96 1996 97 1997 .
95 13. In lakhs) 16.99 18.87 7. .OBJECTIVE – 4 TO FIND OUT THE ATTITUDE OF CUSTOMERS VIEWS ABOUT HOUSING FINANCE TABLE – 9 LOANS SANCTIONED – OCCUPATION WISE – 1996-97 Details of occupation Business Government employee Non-governmental employee Agriculture Profession TOTAL Loan sanctioned (Rs.53 5.4 Percentage 27 22 9 13 29 100 INFERENCE The table clearly shows that during the year 96 – 97 loan sanctioned to profession customers about 29% followed by business people about 27% and 22% to government employee and so on.06 62.
29% 27% Business Government employee Non Governement Employee Agriculture 13% 9% 22% Profession 54(C) .
41 46.TABLE – 10 LOANS SANCTIONED – OCCUPATION WISE – 1997-98 Details of occupation Business Government employee Non-governmental employee Agriculture Profession Staff TOTAL Loan sanctioned (Rs.00 184.44 20. 26% loan sanctioned to non government employee customers about 20% to government employee and 19% loans available by business people followed by agriculture 14% and profession 11% and staff 10%.66 Percentage 19 20 26 14 11 10 100 INFERENCE The table clearly shows that during the year 97 – 98.79 37. .83 25. In lakhs) 35.19 19.
Business Government employee Non Governement Employee
Agriculture Profession Staff
TABLE – 11 LOANS SANCTIONED – OCCUPATION WISE – 1998-99 Details of occupation Business Government employee Non-governmental employee Agriculture Profession Staff TOTAL Loan sanctioned (Rs. In lakhs) 100.40 63.45 7.10 15.09 22.20 3.00 211.24 Percentage 47.53 30.03 7.14 10.51 10.51 1.43 100
INFERENCE About 47.53% of total loans sanctioned during the year 1998 – 99 to business sector followed by government employees 30.03%, Proffesionals 10.51%, agricultural sector 7.14% and 3.36% to nongovernmental employee as indicated in the table.
1% 11% 3% 7% 48% Business Government employee Non Governement Employee Agriculture Profession 30% Staff
TABLE – 12 CUSTOMER VIEW – ABOUT INTEREST RATE
Views Very important Important Ok Not important Not very important Total INFERENCE
No. of persons 53 44 25 38 40 200
Percentage 26 22 13 19 20 100
It is observed from the table that about 26% of customers view about interest rate is very important followed by important from 33% of customers and 20% of customers’ opinion is not very important and 19% of customers views are not important followed by 12% of customers view is no commands.
Very important Important Ok
19% 22% 13%
Not important Not very important
TABLE – 13 SERVICES / PERFORMANCE OF THE BANK
Views Highly satisfied Satisfied Neither satisfied not dissatisfied Dissatisfied Highly dissatisfied Total
No. Of persons 40 25 60 38 37 200
Percentage 20 13 29 19 19 100
INFERENCE It is observed from the table that about 20% of customer option about the performance of the bank is satisfied and 29% customers with no comments and 19% of customers are dissatisfied and 19% of customers highly dissatisfied and only 13% of the customers are satisfied with the performance of the bank.
Highly satisfied Satisfied
Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied
00.00. of persons 56 69 58 17 200 Percentage 28 34 29 9 100 INFERENCE it is observed from the table that the bank had sanctioned the loans to the income group in between 50.000 about 29% and followed by the minimum group of 50.001 – 1.000 Total No.00.000 2.00.00.000 2.00.00.00.000 50. 9% 28% 29% Upto 50.001 .00.001 – 3.000 1.000 1.001 – 1.001 – 2.3.000 about 28% and so on.2.00.00.001 – 2.000 34% 59(C) .000 50.000 of about 34% followed by the income group 1.00.1.00.TABLE – 14 LOANS SANCTIONED – AS PER INCOME GROUP Income group Upto 50.001 .001 .
for the pay back period followed by procedural aspect and interest rate of reputation of the bank as shown in the table. of persons 50 78 62 10 200 Percentage 25 39 31 5 100 Rank 3 1 2 4 INFERENCE It is observed from the table that about 39% of customers ranking views as indicated rank 1.TABLE – 15 CUSTOMER VIEW – RANKING OF PRIORITY Terms Interest rate Pay back period Procedure Reputation of the bank Total No. 5% 31% 25% Interest rate Pay back period Procedure Reputation of the bank 39% 60(C) .
ABOUT TERMS Terms High interest rate and low pay back period Low interest rate and high pay back period Total 200 100 83 42 No. 42% 58% High interest rate and low pay back period Low interest rate aand high pay back period 61(C) .TABLE 16 CUSTOMERS’ VIEWS . of persons 117 Percentage 58 INFERENCE It is observed that about 58% customers choose the first option which is high rate and low pay back period and about 41% of customers chose Low interest rate and high pay back period.
of persons 0 114 86 200 Percentage 0 57 43 100 INFERENCE It is observed from the table that 57% customers selected the bank because the pay back period and about 43% of customers selected this bank because of bank’s simple procedural aspects.TABLE – 17 BASIS OF SELECTING THE BANK Selection Interest rate Pay back period Procedure Total No. 0% 43% 57% Interest rate Pay back period Procedure 62(C) .
8% Highly complicated 30% 62% Complicated Sample 63(C) .TABLE – 18 CUSTOMER VIEW – ABOUT PROCEDUTAL ASPECTS Procedure Highly complicated Complicated Simple Total No. of persons 15 60 125 200 Percentage 8 30 62 100 INFERENCE It is observed from the table that about 62% of customers’ views about the procedural aspects of the bank was simple compared to 30% of the customers’ view is complicated and 8% of the customers’ view is highly complicated. This may be due to various reasons whoch may not be relevant procedural policies.
001 – 5.00.000 30% 64(C) .000 50.00.00.000 30% 3.00.00.001 – 3.00.001 – 4.00.000 Total No.00.00.001 .001 – 1.000 1.000 followed by 16% loans up to Rs.5.1.000 2.001 .00.000 4.000 4.00.00.00.4.00.00.000 3.5. 3% 12% 9% 16% Upto 50.001 .001 . of persons availed 32 62 60 23 6 17 200 Percentage 16 30 30 12 3 9 100 INFERENCE It is observed that the table that 60% loans were sanctioned to 50.001 .2.TABLE – 19 LOANS SANCTIONED AS PER QUANUM OF AMOUNT Quantum of loan Up to 50.001 – 2.00.000 as indicated in the table.2.001 .00.3.00.000 2.00.00.000 1.000 50.
TABLE – 20 LOAN SANCTIONED – PURPOSE WISE Purpose Construction of houses Repair / renovation Total No. of persons 93 107 200 Percentage 47 53 100 INFERENCE It is observed from the table that 53% of persons availed loans for the purpose of repairs and alterations of houses and 47% of persons availed for constructing the houses. 0% 47% 53% Construction of houses repair/Renovation Purchase of plots/houses 65(C) .
TABLE – 21 OUTSTANDING DUES . 75 have outstanding dues. The table shows that 44% of OD installments between 1 – 5 and 39% between 6 – 10. of persons 33 29 13 75 Percentage 44 39 17 100 INFERENCE It is observed from the table that out of 200 persons.AS PER INSTALLMENTS Outstanding installments 1–5 6 – 10 11 and above Total No. 17% 44% 1 to 5 6 to 10 11 and above 39% 66(C) .
of persons 93 30 77 200 Percentage 46 15 39 100 INFERENCE It is observed from the table that 46% of customers identified the bank through friends and 39% of customers through other sources. 39% 46% through friends through advertisements Through others 15% 67(C) .TABLE – 22 CUSTOMER VIEW – SOURCES OF IDENTIFICATION Sources of identification Through friends Through advertisements Through officers Total No.
TABLE – 24 LIKERT SCALE ON INTEREST RATE OF THE BANK Views Very important Important Ok Not important Not very important Total No. So the bank should take steps to identify the customers at their maximum level. of persons 53 44 25 38 40 200 Rank 2 1 0 -1 -2 Likert scale 106 44 0 -38 -80 32 INFERENCE The likert scale shows positive result so most of customers view is interest rate is very important so the bank has to take necessary steps with regard to the interest rate up to their level.TABLE – 23 LIKERT SCALE TO SERVICES / PERFORMANCE OF THE BANK Views Highly satisfied Satisfied Neither satisfied not dissatisfied Dissatisfied Highly dissatisfied Total No. of persons 40 25 60 38 37 200 Rank 2 1 0 -1 -2 Likert scale 80 25 0 -38 -74 -7 INFERENCE Likert scale shows negative balance that is out of respondent most of the people view is they are not satisfied with the performance of the bank. No comments by 60 persons about the performance of the bank. .
FINDINGS AND SUGGESTIONS .
The bank may take steps to satisfy their customers by liberalizing the procedures. This will affect the bank more. the bank may take steps to give some special concessions to the regular customer without any OD. 12% of customers comment about interest rate of bank as no comments. 7.2. 6.00. This may be due to locational aspect i. to reduce OD. Then. This may be due to lack of awareness of the people about the bank or less concentration of the bank towards this segment or competition from other banks/financial institutions. Bank giving housing loans as mortgage loan. 5. So that it can increase the housing finance business substantially.CHAPTER 8 FINDINGS AND SUGGESTIONS 1. For professionals. 3.e. Bank over due is higher. so they go for other financial institutions and co-operative housing societies. banks and co-operative societies.000 only. During these three yearsloans to professionals and agricultural sectors are too low. . The bank‟s maximum limit at loan is Rs. 2. Chengalpattu is an area of less locational advantage. The bank may take steps to encourage that they may utilize the maximum kimit by liberising the procedures to avail the maximum limit. The bank may take steps to attract the above segments by giving huge advertisements liberalizing the proceeds at par with the competitors. So. business people sanctioned more than others and non-governmental employee are very low. Most of the customers feel that the bank‟s procedural aspects are apparently simple but the formalities are difficult to understand and are complicated.. Customers availed loans from the bank mostly for repair and renovation of existing houses compared to the new construction of houses. 4. This is because the interest rate of the bank is higher than the other financial institutions. During the first year. So. In the second year non – government employee loan sanctioning are more compared to the others. For new purchase of flat or plot customers initially need of money. agriculture loan sanctioning is very poor.00. It may be suggested that the bank may go for small advertisement within the city limits to make awareness of the general public about their housing finance schemes. to take serious steps to the OD customers to collect the amount. There are no loans sanctioned for purchase of the plot ot flat. the bank may give loan for the purchase of plot/flat.5. In the third year business people sanctioned more. Bank advertisements are very low compared to the other financial institutions.000 but very least people availed the maximum limit. Most of the people availed loans up to Rs.
So they cannot spend more amount to pay installments.00. This risk indicates that low. The middle income group people only availing the loans. So the bank should take steps to analyse and to reduce the interest rates.000. 8.000 and 29% belong to the income group between Rs. . compared to the other banks and other housing finance institutions interest rate are high.00. From the table. So the bank should analyse about this and try to take the necessary steps. 9. While selecting the bank.00.50.001 – 1. 11. 12. Some people view is to repay the loan as early as possible. 13% are satisfied and 19% of customers are dissatisfied and 18% are highly dissatisfied.001 – 2. 57% of people selected because of payback period and no person selected the bank for interest rate because.The bank may take steps to reduce the interest rate by seeking grants concessional loans from National level Housing Development Banks. From the table about 59% customers‟ opinion is high interest and low pay back period. while ranking the priority of bank payback period takes first rank and simple procedures takes second place and interest rate takes only third place. So they like low interest rate and high payback period. 41% customers opinion is low interest rate and high payback period.1. So they like more years to complete the loan. middle and high income group customers availed this loan. about 35% of customers belong to the income group between Rs. From the table about 20% customers view about the performance of the bank is highly satisfactory. 10. The bank may take steps to increase the sanctioning of loans to the lower income group people. This may be the views of the overdue customers. The bank should try to satisfy the customers at the maximum level. From table.
CHAPTER – 9 CONCLUSION Last few years have witnessed radical measures aimed at broadening the financial system in our country the fact remains that a significant proportion of financial transaction even now takes place outside the format financial system. This system has got a big potential and the responsibility of providing funds for the social security at a reasonable cost. It found that the existing housing finance system had broadly two segments viz. “formal” and “informal”. The rest 80% of the funds came from the informal segment which includes households themselves and public/private sector employers providing housing loans to their staff.GIC and Canfin Homes even though the interest rate charges by the foreign banks are high they compensate it by providing innovative value added service which make the customer feel very important and satisfied and the service generally provided by the LIC and GIC are poor when compared to the services provided by the HDFC and foreign banks and the entry of other schedule banks like SBI. Vysya Bank and other financial institutions entering the market will make the life hard for existing housing finance companies if they are not going to improve their services to their clients. Even though HDFC has a market share of 60% and LIC having another 20% now they have started to lose their share due to entry of other finance companies in the market. financial institutions like the Life Insurance Corporation of India (LIC). Entry of foreign banks in the market has created a sift competition in the market for the existing players like HDFC. the formal segments comprising the central/state government. LIC. Commercial banks and housing finance institutions including Housing Co-operative accounted for less than 20% of the investment in housing. Provisional Funds. This is much more so in housing finance. to up all short coming NHB has sent a team of officials to study the system of securitization provides the mechanism for mobilizing funds from the asset side of the balance sheet. Indian Bank. But now with lot of housing companies entering the market this scenario is totally challenging and more people are preferring the formal sector for their housing loan and this now has lead to shortage of resources for the housing finance companies this is due to the depending of the housing finance companies on the low-cost funds which is becoming hard to mobilize and another problem faced by them mismatch of asset and liability. The problem traced by the industry and the first tale to which NHB addressed itself after coming into existence was to have a close look at the existing financial frame work for meeting housing needs. . Unit Trust of India (UTI). General Insurance Corporation of India (GICI).
These place the lender at a service disadvantage. The industry is presently facing the problem of souring of funds. thus hampering the mortgage market as well as its securitization. STAMP DUTY Although a state subject stamp duties are exorbitantly high and need to be drastically brought down and rationalized. being so much difficult. people will have to have housing and the means of mobilizing savings for housing and making the task of the people who want to build a house easier should engage lot of own attention. outmoded laws are holding up development of the housing sector. The country has to progress. Most of them depend on NHB for low cost finance. To provide housing for all with adequate infrastructure facilities by 2010 to enable everybody to lead a dignified life. deserves special consideration. the rate of stamp duty is high as 15% stamp duty should be brought down to the uniform rate of around 1 – 3% in all states of the country. like following the example set by USA. PROPERTY TAX There is a need to reduce excessive property tax burden on house owners by widening the existing narrow tax base in order to encourage house construction. where securitization has revolutionized the housing finance industry. In some states. A proper institutional structure for financing housing development is the key to its success. whether it is pertaining to finance or building materials all these are difficult problems in themselves. Thus the key aspect of the growth of the industry is to try for new methods of funding. The difficult aspects of the housing problem whether it is in regard to land or to the rate of interest. in the years to come. Some of these laws are given below: FORECLOSURE LAWS The present foreclosure laws are oriented towards the borrower. Financing of urban housing. SELF REGULATION . The government must give higher priority to funds following into housing through special incentives. the open body NHB should take immediate steps for developing the securitization concept and develop a market for securing debt instruments. Policy recommendations are about legislature framework. These should be repealed or amended to give a boost to housing and construction industry.The housing finance industry has got a big potential and the responsibility of providing funds for the social security at a reasonable cost. the NHB has its own limitations on generating such large amount. is the vision of ASSOCHEM.
insurance and guarantee programmes. Interest on housing loan is deductable expense under income from house property under section 24 of the 80L Act. While commercial housing can be left in the hands of the private sector. But this is not so. To increase demand for housing. Such long-term loans should be based on primary mortgages back by govt.13. excessive sales tax on construction equipment should be reduced. People view is that the field of housing is the government responsibility. People and government are two sides of the same coin and the public should not try to run away from its responsibility by putting the entire burden on the government. TREATMENT OF DEPOSITS. LOANS & DIVIDENDS Deposits with HFCs are exempted from wealth tax under sec 5(1)(XXVII) of the wealth tax act within the overall specified ceiling of Rs.15 lakh. Unless prices fall further and interest rates go down. therefore be accorded industry status in order to give a till up to housing construction. Construction sector should. the boom may never come. Dividends received on shares of HFCs quality for a deduction up to Rs. Housing finance systems enjoys certain tax concessions. Interest on deposits with them qualifies for deduction under 80L if the Income Tax Act. Infrastructural development is not possible without construction sector being accorded due importance.000 under section 80L of the Income Tax Act together with other eligible deductions to develop the house finance industry the government has taken many steps. They are not allowed to create a special reserve equal to an amount not exceeding 40% of the total income such a reserve is admissible as a deduction in computing taxable income of HFCs under the head profit & gains of business/profession under sec 36(1)(VIII) of the Income Tax Act. the housing needs of the poor will have to be met by the government.Seven years of intense efforts to professionalise the housing construction industry have led to the formation of National Real Estate Development Council (NAREDCO) an apex body of government policy and private sectors for ethical conduct and to self-regulate the nascent industry. . Government should encourage the private sector to develop and construct housing projects as also townships with the government acting as the facilitator. easy availability of loans at low interest rates is essential to enable buyers purchase homes at the beginning of careers. treatment of HFCS. High interest rates and builder‟s demand for cash payment is keeping housing costs high.
000 b. 50.00. Purchase of flat/plot (new or old) b. Below 45 years b. Name & address of the customer 2. 2. 1.00.000 – 1. Govt. 45 – 50 c. 51 – 55 d. 56 – 58 3. Non – govt. Occupation a.001 – 2. Up to 50.) a. Construction of new house .000 d. Staff 4. employee b. Age a.00.001 and above 5. Purchase of loan availed a. Business d. Annual income (in Rs. Agriculture e. employee c.A SURVEY OF CUSTOMER VIEWS ABOUT HOUSING LOAN TERM FROM “THE CHENGALPATTU CO-OPERATIVE URBAN BANK LIMITED” QUESTIONNAIRE 1.00.000 c.
001 – 5. Very important b.000 7.00.00. OK d. How do you feel about the procedure for obtaining loan a.000 b.c.00. Highly complicated b. Within how many months do you have to pay back the loan 10. Repair of house/flat 6. Simple 9.00.001 – 3.001 – 1. Important c. Amount of loan availed a. Through friends b. How did you know the bank a.000 c. 1.000 e.00. Not important e. 3. 50.000 f.00.00. Through other sources 8.00. Not very important .00. Through advertisements c. How much importance do you give for interest rates a.000 d.001 – 4. 2. Up to 50.001 – 2. Complicated c. 4.
satisfied c. interest rate b. neither satisfied nor dissatisfied d.11. dissatisfied e. Directly b. payback period c. How did you approach the co-operative bank a. on what basis have you selected the bank a. Other sources 12. highly dissatisfied 13. Are you satisfied with the services of the bank a. procedure . Highly satisfied b.
Report on Trend and Progress of Banking in India 1994 – 95 by RBI 5. “An Approach towards spatial planning standards for neighborhoods. “Finance for Housing schemes” report of the working group rate of the banking system by RBI. JOURNALS 1.Y. M.K. Annual reports of NHB 7.Parekh” REPORTS 1. 1998 2. GARG Y. “Housing development in India”. a HUDCO Publications . 3.BIBLIOGRAPHY Books 1. New Delhi. P. Report on trend and progress of Housing Finance by NHB in June 1992. October 1995 4. shelter. The Hindu 2.T. “Writings of H. 1991. Priteeksha Publication. The Economic Times . “BECON” 17th Bank Economist conference 94 3. “ASSOCHAM” India competing for the future policy recommendations July 99 4.DAYAL.T. Jaipur. Annual reports of RBI 6. 2.GIRIAPPA – “Housing Finance & Development in India”.Khan “Financial service” 5. Mohit Publications. S. PAREKH H.
3. Business India . The Financial Express 4. India Today 5.
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