12 - Chapter 4 PDF

Chapter – 4
Data Analysis and Interpretation
4.1 Brief Profile of Surat
4.2 Data Analysis and Interpretations
Section- (A) Simple Tables
Section- (B) Two Way Tables
Section- (C) Association Between Various Characteristics
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Chapter – 4
Data Analysis and Interpretation

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As mentioned earlier, in this study 100 respondents, who have taken home loan
during the period of 2009-2010 from BOB and SPB in Surat City, have been selected.
Before analysing the collected data, it is important to know something about Surat City.
4.1 Brief Profile of Surat

Surat is a city located on the Western part of India in the State of Gujarat. It is one
of the most dynamic cities of India with one of the fastest population growth rate due to
immigration from various parts of Gujarat and other states of India.
History
The city of Surat has a glorious history that dates back to 300 BC. The origin of
the city can be traced back to the old Hindu town of ‘Suryapur’ during 1500 – 1520 A.D.,
which was later colonised by the Brigus or the King from Sauvira on the banks of the
river Tapti. In 1759, the British rulers took its control from the Mughals till the beginning
of the 20th century. The city is located on the river Tapi and has about 6 km long coastal
belt along the Arabian Sea. Due to these reasons, the city emerged as an important trade
centre and enjoyed prosperity through sea trade in the 16th, 17th and 18th centuries. Surat
became the most important trade link between India and many other countries and was at
the height of prosperity till the rise of Bombay port in the 17th and 18th centuries. Surat
was also a flourishing centre for ship building activities. The whole coast of Tapi from
Athwalines to Dumas was specially meant for ship builders who were usually Parsis.
After the rise of the port at Bombay, Surat faced a severe blow and its ship building
industry also declined. During the post-independence period, Surat has experienced
considerable growth in industrial activities (especially textiles) alongwith trading
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activities. Concentration of these activities, combined with residential developments, has
resulted in considerable expansion of the city limits.1
The city is a pivotal centre on the Ahmedabad-Mumbai regional corridor as well
as on the 225 km long industrial belt, having direct linkages with the industrial urban
centres of cities like Vadodara, Ankleshwar and Vapi. National Highway No. 8 passes
within a few kilometres of the SMC boundary and is one of the busiest inter-state trunk
routes in the country. The summers are quite hot with temperatures ranging from 37 oC to
44oC. The climate is pleasant during the monsoon, while the autumn is temperate. The
average annual rainfall of the city is 1143 mm.
Shree Premchand Raichand started first bank in Surat in 1864 namely “Bank of
Surat”. In the next year the Bank of Gujarat Commenced operations in this historic city.
Surat is known by several other names like “THE SILK CITY”, “THE DIAMOND
CITY”, “THE GREEN CITY”, “THE CLEANLIEST CITY”, etc. Surat has practically
zero percent unemployment rate and jobs are easier to get here due to very fast
development of various industries in and around Surat City.
Today, apart from the traditional industries of textile manufacturing, trade,
diamond cutting and polishing industries, intricate zari works, the base has expanded to
gas based industries at Hazira. The events since the 1960’s, seen in the city and the
region, have resulted in a spurt in urban population in the city. Surat continues to present
a 6% plus annual population growth since 60’s, placing Surat 9 th in terms of size
countrywide (2001).
Table 4.1 Population Size for the Year 2011

City Population
Ahmedabad 72,08,200
Surat 60,79,231
Vadodara 41,57,568
Rajkot 37,99,770
Source: www.census.gov.in
1
www.wikipedia.com
141
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During 1991-01, the city experienced an exceptionally high decadal population
growth rate of 85.09 percent. Rapid inflow of population is continuing. Population of
Surat city is 60,79,231 lakhs, approximately.
Parallel to the industrial expansion, Surat emerged as a major centre for trade and
commerce in the region and a silent evolution has been that of the informal sector. Surat
also has many industrial Giants such as KRIBHCO, Mammoth Fertilizer Plant, Reliance
Petrochemical Plant, Essar 10 Million Tone Steel Plant, Shell LNG Terminal. All this at
Hazira and ABG shipyard and Ambuja Cement at Magdalla port. Whereas Torrent power
plant and GIPCL have got a huge lignite power plant in Kamarej area. While the city had
a vibrant economy, the focus was on growth with limited response to housing and
services and the local administration did not translate benefits of growth in terms of a
financially robust local administration.
The region is one of the leading city-regions in the country that has attracted
massive investments of which substantial proportion is under implementation. According
to CMIE 2002, the Surat City region has a proposed investment of about Rs. 11,817
Crores. In addition projects worth Rs. 2,022 Crores are under implementation. Hazira and
SEZ are major focal points for growth. Given these, the prospects of rapid growth
continuing is bright. Much of the industrial development is located within the limits of
Surat city. In fact, Surat is truly an industrial city with over 50% of workforce engaged in
manufacturing activity. The detailed account of sub-sectors of the economy is presented
below approximately:
- 42% of the world’s total rough diamond cutting and polishing
- 70% of the nation’s total rough diamond cutting and polishing
- 40% of the nation’s total diamond exports
- 40% of the nation’s total man made fabric production
- 28% of the nation’s total man made fibre production
- 18% of the nation’s total man made fibre export
- 12% of the nation’s total fabric production2
2
CEPT Report
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Income Distribution
The average Annual Household Income (AHI) in the city is ` 4.57 lakhs, the highest in
the country. Surat’s AHI is almost equal to China’s per capita income of 2007 and double
the national per capita income. Even its GDP growth of 11.5% for the many consecutive
year is the fastest in the country.3
Growth Prospects
According to CMIE, as on August 31, 2006, there are 1819 projects under
implementation with investment of ` 1,34,206 Crores with an estimated employment
generation of 2,77,947. Surat district accounts for 26% of units, 21% of investment and
11% of employment being generated through this investment in the state. In addition,
recently, the Government of Gujarat organised an Urban Summit. Large number of
entrepreneurs signed MOUs (Memorandum of Understanding) to invest in the state in
various sectors. In the Surat region, total worth of MOUs signed is about ` 61,450 crores.
The majority of MOUs signed belong to urban infrastructure, industrial and real estate
sector. The location of these projects is in the areas like Abhava, Kosad, Rundh, Dumas,
Vesu, Pal, Magdalla, Kadodara, Amroli and Sachin, which are in the peripheral areas to
the municipal boundary.
Real Estate
Housing sector is the most preferred segment in Surat too, like in other parts of
the country. Leading property developers are coming up with all kinds of affordable and
luxury home to woo buyers from all classes, i.e., that is to cater to the needs of both
nationals and NRIs. Though the industrial sector of the city is quite well established,
expansion of work is going on in full swing. Even the retail property sector is developing
manifold to meet the recreation need of its growing population with number of malls,
multiplexes and retail outlets opening up across the city. Builders are taking keen interest
in developing property in the Surat city.
Surat has a very high growth rate and there is a huge influx of population at 1000
people daily entering the city hunting for jobs. The city offers a tremendous potential for
3
www.wikipedia.com
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trade and commerce activity. These people need all the urban amenities. In Surat, people
living in rented tenaments are as high as 37%. People mostly live in tenament duplex type
of dwelling units on an average area of 576 sq ft built-up area with three rooms, whereas
in slums the average area is 250 sq ft built-up area with 1.6 rooms.
Due to the rapid industrial growth, urbanization, migration, etc. in Surat, the
demand for home loan is increasing day by day. Total housing loan accounts and
sanctioned limit in Surat is as shown from this table.
Table 4.2 Total Housing Loan Accounts and Sanctioned Limits in Surat
Growth
Particulars 2005 2006 2007 2008 2009
Rates
A/C
16,922 22,717 27,434 32,040 33,451 97.67758
(in Nos.)
Surat
S/Limit
54,46,223 88,93,143 1,25,969 1,84,93,128 18,977,333 248.4494
(in Lakhs)
Source: Trend and Progress Report, RBI, 2005 – 2010.
A/C: Number of Accounts
S/Limit: Sanctioned Limit
Figure 4.1 Total Housing Loan Accounts and Sanctioned Limits in Surat
A/C S/Limit
40,000
20000000
35,000
18000000
30,000 16000000
14000000
A/C Numbers
25,000
12000000
20,000
10000000
15,000 8000000
A/C C/Limit
10,000 6000000
4000000
5,000
2000000
0 0
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
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At Surat city level, the relevant data are not available for various types of banks. Instead,
only aggregate data are available for this year. In Surat city number of housing loan accounts
were 16,922 in 2005 which increased to 33,451 in 2009 which shows the increase of 97.68%. In
comparison, the amount of Sanctioned Limits registered 248% growth i.e. 54,46,223 loan in 2005
to 1,89,77,333 in 2009. In this study, I have selected two banks, namely BOB and SPB. So I have
tried to know the amount of sanctioned home loan by BOB and SPB. Table 4.3 and 4.4 given
below shows the Sanctioned home loan amount by BOB and SPB.
Total Home Loan Given by BOB
Table 4.3 Total Home Loan Given by BOB

(in Lakhs)
Time Period A/C Sanctioned A/C Disbursed
Amount Amount
01/04/06 to 31/03/07 1,225 6,900.10 NA NA
01/04/07 to 31/03/08 1,517 16,438.29 1,352 13,893.93
01/04/08 to 31/03/09 1,382 17,014.16 1,152 14,430.60
01/04/09 to 31/03/10 1,456 20,001.67 1,283 17,447.86
Source: Bank of Baroda, Surat.
In the case of BOB, from the information provided by the bank, it can be seen that the
total amount of home loan disbursed during the year 2007-08 was about ` 139 crores which
increased to about ` 144 crores in 2008-09 and to ` 174.48 crores in 2009-10. Thus, unlike SPB
in the case of BOB, the disbursed amount continued to rise but the number of customers taking
the loan had declined to 1382 in 2008-09 from 1517 in 2007-08.
Table 4.4 Total Home Loan Given by SPB
(in `)
Time Period A/C Sanctioned A/C Disbursed

Amount Amount
01/04/05 to 31/03/06 214 11,78,45,000 347 15,26,24,651
01/04/06 to 31/03/07 354 23,25,66,900 363 19,72,93,268
01/04/07 to 31/03/08 356 26,47,84,881 471 33,31,85,241
01/04/08 to 31/03/09 272 20,41,83,955 226 17,87,76,363
01/04/09 to 31/03/10 266 26,05,82,000 242 22,97,83,471
Source: SPB, Surat.
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The number of customers who were given home loans during the financial year
2005-2006 by SPB was 347, which increased to 363 in the next financial year and to 417
in the financial year 2007-08. However, in the next financial year, i.e. 2008-09, the
corresponding number was less than half (226) of the previous year. This may be due to
the effect of global melt down on the real estate sector in the fast growing city of Surat. It
is to be noted that the number of customers who took home loan from SPB increased
marginally to 242 in the financial year 2009-10.
As far as, the disbursed amount of home loan by SPB is concerned, from about `
15 crores in year 2005-06, it increased to ` 19.73 crores in next year and to ` 33.32 crores
in year 2007-08. However, the amount decreased to ` 17.88 crores in 2008-09 but
increased to ` 22.98 crores in year 2009-10.
4.2 Data Analysis and Interpretations

The data analysis and interpretation have been divided into three sections.
Section-A is simple tables, Section-B is Two-way tables and Section-C is Association
between various characteristics.
Section- (A) Simple Tables
This section focuses on the personal information of the respondents.
(1) Age of the Respondents

The first characteristic of the respondents that is taken into account is the age of
the respondent. Table 4.5 given below shows the age distribution of the respondents. It
can be seem from the table that almost half (48%) respondents belong to the age group of
31 to 40 years, whereas the next age group in terms of the number was 41 to 50 years to
which (22%) of the respondents belonged. 14% of the respondents were above 50 years
of age of which 3 were above 60. Thus, 70% of the respondents belonged to the middle
age group, i.e. 31 to 50 years.
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Table 4.5 Age of the Respondents
Age of the Respondents (years) Number of Respondents (%)
Below 30 16 16.0
31 to 40 48 48.0
41 to 50 22 22.0
Above 50 14 14.0
Total 100 100.0
Figure 4.2 Age of the Respondents

60
48
50
40
(%)
30
22
20 16 14
10
0
Below 30 31 to 40 41 to 50 Above 50
Age (In Years)
(2) Sex of the Respondents

Out of the 100 respondents surveyed, 78% were males and the remaining 22%
were females. Thus, the sample was male dominated.
(3) Educational Qualification of the Respondents

Education is one of the most important characteristics of the customers because
the perception, awareness and behavior of the customers depend largely on his/her
educational qualifications. Among the selected respondents, a majority (55%) were
graduates, while 10 had studied upto S.S.C. level and 6 were educated upto H.S.C. and
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under graduate levels. Apart from this, 23 respondents had other qualifications like
Diploma, etc. The relevant data are provided in table 4.6 below.
Table 4.6 Educational Qualifications of the Respondents

Educational Level Number of Respondents (%)
S.S.C 10 10.0
H.S.C 06 06.0
Under Graduate 06 06.0
Graduate 55 55.0
Post Graduate/Diploma 23 23.0
Total 100 100.0
Figure 4.3 Educational Level of the Respondents

60 55
50
40
(%)
30
23
20
10
10 6 6
0
S.S.C H.S.C Under Graduate Post Graduate
Graduate
Educational Level
(4) Occupation of the Respondents

Table 4.7 given below shows the profession of respondents which may also be an
important factor affecting the decision making of customers. It was found that half of the
respondents (50%), were from the business class, 39% were doing some sort of service,
while only 11% were professionals like doctors, C.A., Engineers, etc.
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Table 4.7 Occupation of the Respondents
Types of Occupation Number of Respondents (%)
Business 50 50.0
Service 39 39.0
Profession 11 11.0
Total 100 100.0
Figure 4.4 Type of Occupation of the Respondents
11
Business
50 Service
Profession
39
(5) Income of the Respondents

Annual Income of the respondents is the most important factor determining their
demand for home loan. Table 4.8 gives information on the annual income of the
respondents in which the respondents are divided into four income groups. It is found that
the maximum number of respondents (32) were in the income group of ` 2.4 lakhs to 3.6
lakhs and the next important income group was less than ` 1.8 lakhs. There were 19
respondents earning more than ` 3.60 lakhs. The minimum and maximum annual income
were ` 72, 000 and ` 30,00,000 respectively.
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Table 4.8 Annual Income of the Respondents
Income Group ( ` in lakhs) Number of Respondents (%)
< 1.8 28 28.0
1.8 to 2.4 21 21.0
2.4 to 3.6 32 32.0
> 3.6 19 19.0
Total 100 100.0
Figure 4.5 Income Level of Respondents
>` 3.6 19
Income Level (in `)
`2.4 to `3.6 32
` 1.8 to `2.4 21
< ` 1.8 28
0 5 10 15 20 25 30 35
(%)
(6) Type of Family of the Respondents

The demand for housing is affected by an important social factor, viz. type of
family. Normally, persons living in a joint family are likely to have a higher propensity to
acquire an independent house of their own. Among the selected respondents 77% lived in
a nuclear family and the remaining 23% lived in a joint family.
(7) Loan Taken in the Past

In order to analyze the behavior of customers who have taken home loans from
the banks, it was necessary to examine whether they had previous experience of taking a
loan. The response of the respondents in this regard indicated that only 32% of them had
taken a loan in the past and for the remaining 68%, this was the first experience of taking
a loan.
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(8) From which Bank, Loan is Taken in the Past
Table 4.9 From which Bank, Loan is Taken in the Past
Banks Number of Respondents (%)
BOB 3 8.82
Canara Bank 2 5.88
Dena Bank 1 2.94
HDFC Bank 9 26.47
HDFC Bank and BOB 1 2.94
Andhra Bank 2 5.88
ICICI 3 8.82
SDCB 1 2.94
SPB 1 2.94
SBI 9 26.47
Total 32 100
Figure 4.6 From which Bank, Loan is Taken in the Past

30.00
26.47 26.47
25.00
20.00
(%)
15.00
10.00 8.82 8.82

5.88 5.88
5.00 2.94 2.94 2.94 2.94
0.00
BOB Canara Dena HDFC HDFC Andra ICICI SDCB SPB SBI
Bank Bank Bank Bank and Bank
BOB
Banks
It is found that the largest number of respondents (09) had taken loan from the
HDFC bank and SBI earlier. The other important banks were BOB and ICICI.
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(9) Types of Loan taken in the Past
It would be interesting to know which types of loans were taken by the
respondents earlier. The information on the type of loan taken earlier by the respondents
are shown in table 4.10 given below.
Table 4.10 Types of Loan taken in the Past

Types of Loan Number of Respondents (%)
Home Loan 3 8.82

Personal Loan 6 17.65
Vehicle Loan 20 58.82
Home Loan & Vehicle Loan 1 2.94
Personal Loan & Others 2 5.88
Others 2 5.88
Total 34 100.00
Figure 4.7 Types of loan taken in the past

58.82
60.00
50.00
40.00
(%)
30.00
17.65
20.00
8.82
5.88 5.88
10.00 2.94
0.00
Home Loan Personal Vehicle Home Loan Personal Others
Loan Loan & Vehicle Loan &
Loan Others
Types of Loan
The above table reveals that most of the respondents viz. 62.0% (21 out of 34)
had taken loan for buying vehicles. The next important type of loan was the personal
loan. Only 8.82% (3) respondents had taken home loan earlier. This indicates that most of
the respondents selected in the sample were taking home loans for the first time.
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(10) Sources of Information
An attempt was made to examine the source of information regarding the home
loans. Table 4.11 given below, which is based on the information provided by the
respondents, gives the relevant figures.
Table 4.11 Sources of Information
Sources of Information Number of Respondents

Advertisement 32
a. Newspaper 06
b. T.V. 09
c. Internet 04
d. Others 13
Total (a+b+c+d) 32
By Bank 37
a. Staff/Agent 23
b. SMS/ Phone Call 08
c. Others 06
Total (a+b+c) 37
Others 83
a. C.A./ Loan Consultant 56
b. Friends 19
c. Relatives 04
d. Neighbour 02
e. Others 02
Total (a+b+c+d+e) 83
It is evident from this table that as many as 83 respondents availed the

information about home loans from “Others”, which included 56 respondents who get the
information from C.A./ loan consultant, 19 from friends and the remaining 8 from the
relatives, neighbours, others, etc. The second most important source of information was
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“Banks” (37 respondents) consisting of 23, 08, and 06 respondents who received
information from bank staff/agents, SMS/Phone calls and others respectively. The last
important source of information is “Advertisement” from which 32 respondents received
the information. In this category others (hoardings, banners, etc.) provided information to
13 respondents while the sources like newspaper, T.V. and Internet were stated as sources
of information by only 06, 09 and 04 respondents respectively.
However, in the study undertaken by M.K. Chaubey (2009), it was found that
72%, 18% and 10% respondents came to know about home loan through print and
electronic media, friends and relatives and builders/developers respectively. But in my
study, the results had shown that only 27% and 25% respondents came to know about
home loan through print and electronic media and friends and relatives respectively.
However, in my study more respondents (56%) came to know about home loan through
CA / loan consultant.
(11) Year in which the Loan was Taken

Table 4.12 given below gives information regarding the year in which loan was
taken by the respondents. It is clear from this table that a large majority of them (76) had
taken home loan in the year 2010, 24 had taken the loan in the year 2009.
Table 4.12 Year in which the Loan was Taken

Loan taken Number of Respondents (%)
During 2009 24 24.0
During 2010 76 76.0
Total 100 100.0
(12) Term of Loan

The respondents were asked to provide information on the term of loan taken
by them. On the basis of the replies given by them, table 4.13 given below was
constructed.
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Table 4.13 Term of Loan
Years Number of Respondents (%)
5 to 10 54 54.0
11 to 15 40 40.0
> 15 06 06.0
Total 100 100.0
Figure 4.8 Term of Loan
> 15 6
Years
11 to 15 40
5 to 10 54
0 10 20 30 40 50 60
(%)
It can be seen from the table that slightly more than half (54%) of the respondents
had taken home loans with terms ranging from 5 to 10 years. For 40 respondents the term
was between 11 to 15 years and for the remaining 06 the term was more than 15 years.
In the study of M.K. Chaubay (2009) in Varanasi, it was found that 28%, 14%
and 58% respondents opted for, 5 years and 10 years, more than 15 years as a term of
loan respectively.
In the study of D. Rajasekhar (2008) in Chennai city, it was found that 54%, 36%
and 10% of the respondents preferred the repayable period of more than 10 years, more
than 15 years and more than 5 years, respectively.
But in this study only 6% respondents opted for loan for more than 15 years. It
may be assumed that in Surat city the level of income is so high that the customers are
able to repay home loan in a short period of time.
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(13) Amount of Loan Applied For
It will be instructive to know about the amounts of loan the customers had applied
for. Table 4.14 given below provides information on the amounts of loan applied for. As
shown in the table, out of 100 respondents almost 1/3 each had applied for the loan
amount between ` 1 to 5 lakhs and ` 5 to 10 lakhs. Thus, about 2/3 of the sample
customers had asked for home loans below ` 10 lakhs. On the other hand, only 8
respondents had applied for a loan amount of ` 20 lakhs or more.
Table 4.14 Amount of Loan Applied For

Amount (` in lakhs) Number of Respondents (%)
1 to 5 32 32.0
5 to 10 33 33.0
10 to 20 27 27.0
> 20 08 08.0
Total 100 100.0
Figure 4.9 Amount of Loan Applied For
32 33
35
27
30
25
20
(%)
15 8
10
5
0
1 to 5 5 to 10 10 to 20 >20
Amount (` in lakhs)
(14) Amount of Loan Sanctioned

As against the amount of the loan applied for, one would like to know the amount
of loan sanctioned by the respective banks. Table 4.15 gives the necessary information.
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According to this table, in case of 33, 36, 23 and 08 customers, the amounts of loan
sanctioned were in the range of ` 1 to 5 lakhs, ` 5 to 10 lakhs, ` 10 to 20 lakhs and more
than ` 20 lakhs respectively.
Table 4.15 Amount of Loan Sanctioned

Amount (` in lakhs) Number of Respondents (%)
1 to 5 33 33.0
5 to 10 36 36.0
10 to 20 23 23.0
>20 08 08.0
Total 100 100.0
Figure 4.10 Amount of Loan Sanctioned
40 36
33
35
30
23
25
(%)
20
15
8
10
5
0
1 to 5 5 to 10 10 to 20 >20
Amount (` in lakhs)
Comparing with the earlier table (table 4.15), only in the case of range ` 10 lakhs
to 20 lakhs, 4 customers were denied amounts of loan in this range. All the customers
who applied for home loans amounting to more than ` 20 lakhs were sanctioned the loan
of similar amounts.
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The findings of analysis of simple frequency tables may be summarized as
follows:
(1) About 70% of the respondents were middle aged, i.e. 31 to 50 years of age
(2) The sample was dominated by males. (78%)
(3) A majority of (55%) respondents were graduates.
(4) Exactly 50% of the respondents were from business class. While 39% were from
service class.
(5) The maximum number of respondents (32%) had annual income of ` 2.4 to 3.6
lakhs and 19% had income more than ` 3.6 lakhs.
(6) 77% respondents lived in nuclear family.
(7) 32% of the respondents had taken some kind of loan from the bank earlier and
59% of them had taken vehicle loan earlier.
(8) Most of the respondents availed the information about the home loan from other
sources like C.A. / loan consultant / friends, etc.
(9) In case of only 6% of the respondents the term of loan was more than 15 years
and for the remaining 94% the term of loan was less than 15 years.
(10) About 2/3 of the sample customers had applied for loans below ` 10 lakhs and
69% respondents were sanctioned loan below ` 10 lakhs.
Section – (B) Two Way Tables
In this section, I have done comparative study of BOB and SPB in respect of
different aspects of home loan.
(15) Time Taken for Sanctioning Home Loan

The time taken by the bank for sanctioning the loan is an important factor for the
consideration of customers. It also reflects the efficiency of the bank and the staff and
stability of the procedure for sanctioning the loan. The relevant data for BOB and SPB
also at the aggregate level are given in table no 4.16. It may be seen from this table that in
as many as 37 cases the loan was sanctioned within 8 to 15 days and in 30 cases the time
lag was 21 to 30 days. Only in 9 cases, sanction took more than a month.
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Table 4.16 Time Taken for Sanctioning Home Loan
Days BOB SPB Total
Upto 7 07 02 09
(77.78%) (22.22%) (100.0%)
8 to 15 29 10 39
(74.36%) (25.64%) (100.0%)
16 to 20 04 08 12
(33.33%) (66.67%) (100.0%)
21 to 30 07 25 32
(21.88%) (78.13%) (100.0%)
>30 03 05 08
(37.50%) (62.50%) (100.0%)
Total 50 50 100
Figure 4.11 Time taken for Sanctioning Home Loan

90.00
77.78 78.13
80.00 74.36
70.00 66.67
62.50
60.00
50.00
(%)
37.50
40.00 33.33
30.00 25.64
22.22 21.88
20.00
10.00
0.00
Upto 7 8 to 15 16 to 20 21 to 30 >30
Days
BOB SPB
Comparing the relevant figures for BOB and SPB it is found that in general BOB
had sanctioned the loan within a shorter period. For example, out of 9 cases in which the
loan was sanctioned within 7 days, 8 were BOB customers and only 1 was SPB customer.
Similarly, for 8 to 15 days duration, 27 were BOB customers and only 10 were SPB
customers. On the other hand, for 24 customers of SPB the loan was sanctioned within 21
to 30 days, but the corresponding number was only 6 in case of BOB.
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(16) Documents Demanded for Home Loan
The respondents were also asked during the survey to reveal the documents which
were demanded by the banks alongwith the application form. This was done just to assess
the knowledge and awareness of the respondents.
Table 4.17 Documents Demanded for Home Loan

Documents Number of Respondents
PAN Card 94
I.T. Returns 94
Residence Proof 93
Latest Salary Pay Slip 42
Six Months Bank Statement 92
It was found that between 6 and 8 respondents responded negatively when they
were asked whether PAN card, income tax returns, residence proof and 6 months bank
statements were demanded by the bank. Moreover, 42 respondents said that the Latest
Salary Pay Slips were demanded by the bank at the time of processing the loan
application.
(17) Property Insurance

Only 4 of the 100 respondents claim that they had not taken property insurance at
the time of disbursement of loan. It means that out of the 100 respondents covered in the
study, 96 respondents had taken property insurance.
(18) Reasons for Taking the Home Loan

It is important to know the purpose of taking home loan by the respondents.
During the survey the customers were asked to reveal the reasons for availing the home
loans. On the basis of their responses, Table 4.18 given below was constructed.
161
Table 4.18 Reasons for Taking Home Loan
Reasons BOB SPB Total
In place of rented property 06 06 12
(50.0%) (50.0%) (100.0%)
For investment 23 14 37
(62.16%) (37.84%) (100.%)
Desire for big house 14 21 35
(40.0%) (60.0%0 (100.0%)
To get relief in income tax 23 10 33
(69.70%) (30.30%) (100.0%)
To receive rent income by purchase 12 09 21
of new house (57.14%) (42.86%) (100.0%)
Others 02 02 04
(50.0%) (50.0%) (100.0%)
Figure 4.12 Reasons for Taking Home Loan

80.00 69.70
70.00 62.16 60.00 57.14
60.00 50.00 50.00 50.00 50.00
50.00 42.86
37.84 40.00
(%)
40.00 30.30
30.00
20.00
10.00
0.00
In Place of For Desire for To Get Relief To receive Others
Rented Investment Big House in Income rent income
Property Tax by purchase
of new
house
Reasons
BOB SPB
This table reveals that the reasons for taking a home loan in order of preferences
were “for investment (37)”, “desire for a big house (35)” and “for getting income tax
relief (33)”. There were 21 respondents who wanted to earn rent income by availing
home loan. 12 of the respondents wanted to buy a house in place of the rented house in
which they had been living.
162
Examining the bank-wise break-up, it is found that the proportion of customers
who took the home loan for investment purpose was much more (23) in the case of BOB
as compared to similar number (14) in the case of SPB. Applying for the home loan for
“IT relief” also had a similar pattern with the number of customers declaring this as a
reason was 23 in case of BOB as compared to 10 in case of SPB. However, the number of
customers who had taken the home loan “to buy a big house” was only 14 in the case of
BOB with the comparable figure of 21 in the case of SPB. The customers of BOB and
SPB who gave the reason such as “in place of rented property” and “others” were equal,
(6 in each case).
(19) Types of Property

It will be useful to know the types of property the respondents wanted to buy
through the home loans. Various types of property and the corresponding number of
respondents who wanted to buy those properties are provided in the following Table
4.19.
Table 4.19 Types of Property

Properties BOB SPB Total
New flat 32 18 50
New bungalow 02 10 12
New row house 08 13 21
Old flat 05 01 06
Old bungalow 01 04 05
Renovation of old flat 00 01 01
Extension of old bungalow 01 0 01
Renovation of old bungalow 01 01 02
Others 00 02 02
163
Figure 4.13 Types of Property
100.00 100.00 100.00
100.00
90.00 83.33 83.33 80.00
80.00 83.33
70.00 64.00 61.90
60.00 50.00
(%)
50.00 38.10
36.00 50.00
40.00
25.00
30.00 16.67
20.00
10.00 0.00 0.00 0.00
0.00
NF NB NRH OF OB ROF EOB ROB Others
Properties
BOB SPB
It was found that half (50) respondents wanted to buy new flats while the number
of respondents who wanted to buy a new row house and a new bungalow were 21 and 12
respectively. Comparatively, very few customers wanted to buy old flat (6) or old
bungalow (5). Moreover, there were only 1 or 2 respondents who wished to
renovate/extend their existing flat or bungalow. There were also 2 respondents who
wanted to use loan amounts to buy “other” type of property, viz. plot.
In the study undertaken by M.K. Chaubey (2009), it was found that 26%, 34%,
38% and 2% respondents have borrowed loan for purchase of flats, purchase of house,
construction of house and other reasons respectively. However, D. Rajasekhar (2008) had
found in his study, that 45% of the respondents have bought loan for purchase of house,
37% have bought the loan for purchase of flat, 16% for construction of house and
remaining 2% for other reasons.
But in my study, more respondents had taken home loan for purchasing flat (56%)
followed by row house (21%). Only 4% respondents opted loan for construction or
renovation of flat/bungalow. It implies that in Surat city most of the respondents had
taken home loan for purchase of flat because city of Surat is one of the fastest growing
city, therefore, the population growth is also high due to migration. Due to scarcity of
land, builders prefer to construct high-rise buildings than the row house or bungalow.
164
(20) Area (sq. ft.) of the New Flat
Table 4.20 Areas (sq. ft.) of the New Flat

Area (in Sq. ft.) Number of Respondents (%)
500 to 1000 12 24.0
1001 to 1250 14 28.0
1251 to 1500 16 32.0
>1500 08 16.0
Total 50 100.0
It can be seen from the above table that most (more than 60%) respondents have
preferred to buy new flats measuring 1000 to 1500 sq. feet. Only 08 respondents were
ready to buy bigger flats measuring 1500 or more sq. feet.
(21) Area (sq. ft.) of the New Bungalow
Table 4.21 Areas (sq. ft.) of the New Bungalow

Area (in Sq. ft.) Number of Respondents (%)
350 to 1200 04 33.33
1201 to 1700 06 50.0
> 3500 02 16.67
Total 12 100.0
It can be seen from the above table that 4 and 6 respondents had planned to buy a
small size bungalow (350 to 1200 sq. ft.) and medium size new bungalow (1200 to 1700
sq. ft.) respectively. There were also 2 respondents who wanted to buy a bigger size
bungalow (more than 3500 sq. ft.).
165
(22) Area (sq. ft.) of the New Row House
Table 4.22 Areas (sq. ft.) of the New Row House

Area (in sq. ft.) Number of Respondents (%)
201 to 500 08 38.10
501 to 750 07 33.33
751 to 1100 03 14.29
> 1100 02 09.52
Total 21 100.0
The areas of new row houses that 21 respondents wanted to buy are given in
Table 4.22 given above. It is found from this table that 8 and 7 respondents wished to buy
a new row house measuring 200 to 500 sq. ft. and 501 to 750 sq. ft. respectively. As
against this, only 3 respondents wished to buy new row house measuring 751 to 1000
sq.ft. and 2 were willing to buy the new row houses of about 1500 sq. ft.
(23) Area (sq. ft.) of the Old Flat

Out of the 6 respondents who desired to buy old flats through the home loan, 4 of
them wanted to buy a small flat measuring between 400 and 617 sq. ft., 1 wanted to buy a
medium size of flat of 1170 sq. ft. and the remaining respondent desired to buy a large
old flat measuring 2650 sq. ft.
(24) Area (sq. ft.) of the Old Bungalow

One of the respondents wanted to buy a small size old bungalow of 1266 sq. ft.
and the remaining 4 wanted to buy old bungalows of 2000 to 2500 sq. ft.
(25) Number of Respondents who were Account Holder of the Bank

Table 4.23 given below provides the necessary information on this aspect. 52
respondents were account holders of the bank when they applied for home loan. Out of
them, 22 were relatively new account holders (9 years) and 27 were holding account for
10 to 20 years and 3 had accounts for more than 20 years.
166
Table 4.23 Number of Respondent who were Account Holder of the Bank
No. of Years Number of Respondents (%)
2 to 9 years 22 42.31
10 to 20 years 27 51.92
>20 years 03 5.77
Total 52 100
(26) Reasons for Rejection of Application

Table 4.24 gives the reasons for the rejection of applications. It indicates that the
application of 12 respondents were rejected, in case of 07 respondents (58.33%) the
reason for rejection was negative CIBIL (Credit Investigation Bureau of India Ltd.)
report. The other reasons were less income (16.67%), plan of the property not sanctioned
(16.67%) and other reasons (8.33%).
Table 4.24 Reasons for Rejection of Application

Reasons Number of Respondents (%)
Due to Less Income 02 16.67
Plan not Sanctioned 02 16.67
CIBIL Report 07 58.33
Other Reason 01 8.33
Total 12 100.00
Figure 4.14 Reasons for Rejection of Application

58.33
60
50
40
(%)
30 16.67 16.67
20 8.33
10
0
Less Income Plan not CIBIL Report Other Reason
Sanctioned
Reasons
167
(27) Other Services of the Bank Utilized by the Respondents
Table 4.25 provides the responses of the respondents regarding other services of
the bank utilized by them. As can be seen from the table two important reasons are
savings account facility (63) and current account facility (61). The third and the fourth
service in terms of importance are the “locker facility (35)” and “overdraft (14)”. Less
than 5 customers utilized other services such as cash credit, insurance, mortgage loan,
etc.
Table 4.25 Other Services of the Bank Utilized by the Respondents
Other Services Utilized BOB SPB Total
Current A/C 21 41 62
(33.87%) (66.13%) (100.0%)
Saving A/C 39 24 63
(61.90%) (38.10%) (100.%)
Overdraft 10 05 15
(66.67%) (33.37%) (100.%)
Cash Credit 03 0 03
(100.0%) (00.0%) (100.%)
Mortgage Loan 0 01 01
(00.0%) (100.0%) (100.0%)
Insurance 03 01 04
(75.0%) (25.0%) (100.0%)
Locker 19 16 35
(54.29%) (45.71%) (100.%)
Others 01 02 03
(33.33%) (66.67%) (100.0%)
Among the three important facilities that were utilized by the respondents, in the
case of current account 41 and 21 respondents were using the facility from SPB and
BOB respectively and in the case of savings account the dominance of these two banks
was reversed as 3 and 24 respondents used this facility from the banks. However, in the
case of “locker facility” the numbers of respondents obtaining this facility were almost
equal (19 and 16) respectively.
(28) Reasons for Selecting the Bank

One can see that the most important reason for selection of the bank is “Less fee
(86)” followed by the “Co-operative staff (76).” The other reasons were “Speedy
process” and “Nearer to residence (67 each)” and “Low interest rate (62).”
168
Table 4.26 Reasons for Selecting the Bank
Reasons for Selecting the Bank BOB SPB Total
Less Interest Rate 47 15 62
(75.81%) (24.19%) (100.0%)
Speedy Process of Loan 43 24 67
(64.18%) (35.82%) (100.0%)
Less Processing Fee and Other Charges 46 40 86
(53.49%) (46.41%) (100.0%)
Co-operative Staff 33 43 76
(43.42%) (56.58%) (100.0%)
Nearer to residence 36 31 67
(53.73%) (46.27%) (100.0%)
Others 0 04 04
(00.0%) (100.0%) (100.0%)
Figure 4.15 Reasons for Selecting the Bank

100.00
100.00
90.00 75.81
80.00 64.18
70.00 53.49 56.58 53.73
60.00 46.51 43.42 46.27
(%)
50.00 35.82
40.00 24.19
30.00
20.00
10.00 0.00
0.00
Less Interest Speedy Less Co-operative Nearer to Others
Rate Process of Processing Staff residence
Loan Fee and Other
Charges
BOB SPB
Among the reasons for selecting the bank “Less processing fees and Other
charges”, “Co-operative staff” and “Nearer to residence” were almost equally popular
among the respondents. On the other hand, among 62 respondents who claimed that less
interest was the reason for selecting the bank 47 (75.81%) were the customers of BOB
and only 15 (24.19%) were from SPB.
In the study undertaken by D. Rajasekhar (2008), it was found that 34% of the
respondents have reported that, the institution provide loan at low rate of interest, 33%
have reported easy installment, 31% reported that they approached for simple procedure
169
and formalities and only 2% of the respondents represent location near to their house.
Thus there was wide disparity between the reasons given by the respondents in this study
as compared to my study, e.g. ‘nearer to residence’ was given as a reason by 46% to 53%
respondents in our study whereas the same reason was given by only 2% of the
respondents in Rajasekhar’s study. So were the case with reasons like ‘co-operative staff’
and ‘less interest rate’, etc.
(29) Mode of Repayment of Loan

Data regarding the number of customers making payment through various modes
are shown in the following table.
Table 4.27 Mode of Repayment of Loan
Mode of Payment BOB SPB Total
By Cash 03 01 04
(75.0%) (25.0%) (100.0%)
By Cheque 20 11 31
(64.52%) (35.48%) (100.0%)
Online Banking 06 03 09
(66.67%) (33.33%) (100.0%)
Mobile Banking 1 0 01
(100.0%) (00.0%) (100.0%)
Standing Instruction 12 01 13
(92.31%) (7.69%) (100.0%)
ECS 08 34 42
(19.05%) (80.95%) (100.0%)
Figure 4.16 Mode of Repayment of Loan
100.00
92.31 80.95
100.00
75.00
80.00 64.52 66.67
60.00 35.48 33.33

(%)
25.00
40.00 7.69 BOB
19.05
0.00
20.00
SPB
0.00
By Cash By Cheque Online Mobile Standing ECS
Banking Banking Instruction
Mode of Repayment
170
42 out of 100 customers had opted for ECS mode of repayment and 31 chose to
make repayment by cheque, 12 customers chose repayment through “Standing
Instructions”. Only 10 customers preferred to use modern methods like “on line banking”
and “mobile banking” for repayment.
However, in the study undertaken by M.K. Chaubey (2009) it was found that
40%, 38% and 18% respondents repaid their loan amount through post dated cheques,
through ECS and through Salary deduction and 4% were paid directly to the bank. In
other study by D. Rajasekhar (2008) shows that 53%, 27% and 14% of the respondents
were paying their loan amount through ECS, through post dated cheques and through the
collecting bank respectively. So I have come to almost similar conclusion in the case of
mode of repayment of home loan by ECS and cheque. Another point I had noticed in my
study was that the repayment of home loan was done by using the internet and mobile
services.
(30) When the respondents were asked whether any intimation had been given to them
before due date of installment, only 17 replied in affirmative. This means that majority of
them were not informed about the due date of installment.
Only 10 respondents said that a penalty imposed on them by the bank for a delay
in repayment.
(31) Out of 100 respondents only 13 said that relief has been given by the bank if more
than 1 installment is paid at a time.
(32) Fulfillment of Services Promised by the Banks

During the survey the respondents were asked whether the services promised by
the banks while taking a loan were fulfilled later on.
171
Table 4.28 Fulfillments of Services Promised by the Banks
Services BOB SPB Total

Proper Bank Services 45 48 93
No Hidden Charges 42 48 90
Always Helpful and Co-operative 36 46 82
Give Full Details and Information regarding Bank 39 49 88
Complaints entertained and solved 22 44 66
Lower Interest Rate 48 22 70
Others 01 03 04
Figure 4.17 Fulfillment of Services Promised by the Banks
80.00 75.00
66.67 68.57
70.00
56.10 55.68
60.00 51.61
48.39
50.00 43.20 43.90 44.32
37.80
(%)
40.00 33.33 31.43

30.00 25.00
BOB
20.00
SPB
10.00
0.00
Proper Bank No Hidden Always Give Full Complaint Lower Others
Services Charges Helpful and Details and Entertained Interest Rate
Co-operative Information and Solved
regarding
Bank
Services
As many as 93 out of 100 respondents said that “proper bank services” were
provided. Next in important were services like “no hidden charges” (89), “given full
details” (88) and “helpful and co-operative staff” (81). However, it is important to note
here that services like “Complaints entertained and solved” and “Lower Interest rate”
were fulfilled only in 66 and 70 cases respectively.
172
In the study undertaken by Ashok Kumar (2009), it was found that 51% of the
customers are satisfied with the behaviour towards customers by the bank employees.
(33) Satisfaction with the Bank
Table 4.29 Satisfactions with the Bank

Are you Satisfied? BOB SPB Total
Yes 46 46 92
No 04 04 08
Total 50 50 100
Table 4.29 provides information on whether the customers were satisfied with the
bank. It is found that a very large majority (92%) were satisfied with the service of the
bank, i.e. only a tiny proportion (8%) were not satisfied. Thus it is true of each bank i.e.
SPB and BOB. So, it seems that the extent of satisfaction among the bank customers in
Surat is much higher as compared to the one in Chennai as reported by Ashok Kumar
(2009).
(34) Switch-Over of the Bank
Table 4.30 Switch-Over of the Bank

Switch Over to BOB SPB Total
Nationalised Bank 44 33 77
Private Bank 0 10 10
Co-operative Bank 02 10 12
Others 03 00 03
173
Figure 4.18 Switch-Over of the Bank
100.00
100.00
83.33
57.89
43.42
16.67
0.00
0.00
Nationalised
Bank Private Bank
Co-operative
Bank Others
Banks
BOB SPB
The relevant data given in table 4.30, according to the information provided in
this table, only 12% of the respondents who took home loan from BOB were not ready to
switch over to any other nationalized bank, if they given a choice. Since, similar
percentage was almost five times (66%) in the case of SPB customers. It is clear that the
customers of SPB were much more interested in switching over to the other type of banks
(a nationalised Bank).
(35) Whether Form is Read Before Signing
Table 4.31 Whether Form is Read before Signing
Whether Form is Read Before Signing BOB SPB Total

Yes 15 45 60
(25.0%) (75.0%) (100.0%)
No 35 05 40
(87.5%) (12.5%) (100.0%)
Total 50 50 100
(50.0%) (50.0%) (100.%)
174
Figure 4.19 Whether Form is read Before Signing
87.5
100 75
80
60
(%)
25
40 12.5
20
0
BOB SPB
Bank
Yes No
At the aggregate level, slightly more than half (60.0%) of the customers claimed
that they had thoroughly read the loan application form before signing it that means a
significant proportion of the respondents do not read loan application before signing.
However, 75% of the SPB customers had replied in affirmative as against only 25% of
the BOB customers doing so. This is probably due to the fact that the application form
provided by BOB is in English, while that provided by the SPB is in Gujarati.
(36) Reasons for not Reading Home Loan Application

The reasons for not reading the loan application form before signing are listed
below in table 4.32.
Table 4.32 Reasons for not Reading Home Loan Application

Reasons BOB SPB Total
More detailed information 08 02 10
(80.0%) (20.0%) (100.%)
Language 06 02 08
(75.0%) (25.0%) (100.0%)
Completed by Agent 19 01 20
(95.0%) (05.0%) (100.0%)
Others 02 0 02
(100.0%) (0.0%) (100.0%)
175
Figure 4.20 Reasons for not Reading Home Loan Application Form
95 100
100 80 75
80
60
(%)
40 20 25
20 5 0
0
More detailed Language By Agent Others
Information
Reasons
BOB SPB
Out of 40 respondents, who did not read the loan application form, about 3/4th of
them did so because the entire procedure of application was completed by the agent. 15
respondents did not read it because of the language problem. While, 10 respondents felt
that the application form contained too much of information to read.
(37) Suggestions Given by the Respondents
Table 4.33 Suggestions Given by the Respondents

Suggestions BOB SPB
Insurance policy taken by customers 08 --
Timely and Transparent sanctioned and disbursement process 06 09
Application form in local language/detailed information 05 --
Complete information about home loan and required documents 02 --
Force to buy gold coin/shares 02 03
Loan prepayment and delay charges 01 --
Others 03 03
176
As far as suggestions given by respondents regarding home loans are concerned,
the numbers of suggestions given by BOB and SPB customers were 27 and 15
respectively. In the case of BOB customers, the most important suggestion (08 cases)
given was that “to impose to take life insurance policy themselves” (The bank should not
impose to take insurance policy to the customers). Next in terms of importance was
timely and transparent sanction and disbursement process.” (06 cases) and availability of
application forms in local language and information to be provided in short form (05
cases). There were also minor suggestions like provision of complete information about
home loans and required documents. Informing the customer about approximate time to
be taken, “black part” of the payment to be included to determine the loan amount etc.
In the case of SPB out of 15 customers, 09 suggested that there should be timely
and transparent procedure for sanctioning the loan, 03 customers suggested that the
customers should not be forced to buy the shares of the bank. There were also other
suggestions (one each) like, “co-operation from the bank staff”, “bank should check
CIBIL report” and “the bank should charge lower interest rate”.
However, in the study undertaken by M.K. Chaubey (2009), it was found that
70% respondents agree that there is a delay of loan approval and disbursement also. Most
of the customers suggested that the loan processing / sanctioning time should be reduced.
In this study it is revealed that various problems faced by customers. It was found that
more than half of respondents agree with statement about delay in approval and
disbursement, in adequate guidelines, tedious procedure, lack of interest on part of
officials, difficulty in getting security, inconvenience in paying EMI, irrelevant
securization, illogical approach and insufficient amount sanctioned. In the study
undertaken by D. Rajasekhar (2008), 75% of respondents reported that there is a delay in
sanctioning and disbursement of loan amount.
The conclusions arrived at after analyzing the two-way tables are summarized
below:-
1) It was found that in general BOB had sanctioned loan within shorter period than
SPB.
2) The important reasons for availing the home loan were “to get relief in income
tax”, “for investment” and “to receive rent income”, in case of BOB customers,
177
while for SPB customers there were “desire for big house”, “for investment”, and
“to get relief in income tax” in the order of importance.
3) About half of the respondents had applied for home loan to buy a new flat or a
new row-house.
4) It was found that 52% respondents were accont holders of the bank concerned and
most of them were holding their account for many years.
5) Applications of only 12 respondents were rejected and more than half of them
were rejected due to negative CIBIL report.
6) Two important facilities utilized by the respondents are savings account and
locker in the case of BOB and Current account and Saving account in the case of
SPB.
7) “Less processing fee”, “less interest rate” and “speedy loan process” were
important reasons for selecting BOB while “co-operative staff’ and “less
processing fee” were important reasons for selecting SPB.
8) The more frequently used modes of repayment are “cheque”, “standing
instructions” and “ECS” for BOB customers. There were “ECS” and “by Cheque”
for SPB costumers.
9) 93% respondents reported that proper bank services were provided and 90% and
88% respondents claim that there were no hidden charges and the bank gave full
details and information, respectively.
10) 92% of the customers were satisfied with the services provided by the bank, in
case of both BOB and SPB.
11) It was found that the loan customers of SPB were much more interested in
switching their loan over to other nationalized bank as compared to BOB loan
customers, if they are asked to do so because interest rate is higher as compared to
nationalized bank.
12) 75% of SPB customers, but only 25% of the BOB customers, had read loan
application form before signing it. The most important reason for not reading the
application form being the filling up of form by the agents.
13) It was found that application form of BOB being not in local language (Gujarati)
so the respondents did not read the application form thoroughly.
178
Section – (C) Association Between Various Characteristics
In this section, an attempt has been made to determine whether there exists any
association between various characteristics on which data were collected during the
survey. Such association may be found to be helpful to the policy makers for formulating
policies regarding home loans.
 Relation between Age of the Respondents and Various Reasons for

Home Loans
Table 4.34 Age of Respondents and Reason for Home Loan –

“For Investment”
Age of Respondents Yes No Total
< 30 yrs 05 11 16
13.5% 17.5% 16.0%
(31.3%) (68.8%) (100.0%)
31 to 40 yrs 19 29 48
51.4% 46.0% 48.0%
(39.6%) (60.4%) (100.0%)
41 to 50 yrs 07 15 22
18.9% 23.8% 22.0%
(31.8%) (68.2%) (100.0%)
> 50 yrs 06 08 14
16.2% 12.7% 14.0%
(42.9%) (57.1%) (100.0%)
Total 37 63 100
100.0% 100.0% 100.0%
(37.0%) (63.0%) (100.0%)
value 0.824
Significance Level 0.844
The table given above shows a two way classification of the customers selected in
the sample according to two attributes-their age and whether the home loan was taken
“for investment.” It is found that the percentage of the respondents, who took the home
loan for investment purpose, varied between 32% and 42% without much variation
within the four age groups. Thus, it seems that age of the respondents does not have any
effect on their decisions regarding taking home loan as investment.
179
The above conclusion is also confirmed by the x2 test.
Here,
H0 : There is no association between the age of the respondents and whether
the home loan is taken for investment.
H1 : There is association between the age of the respondents and whether the
home loan is taken for investment.
In this case the value of x2 is 0.824 which has probability of 0.844. Since, this
probability level is not less than 0.05; we do not reject H0 i.e. no association between the
ages of the respondents whether the home loan is taken for the investment is found.
This confirms the earlier conclusion.
Similar analysis was done for testing the association between the age of the
respondents. Another reason was for taking home loan- “desire for big house”, “to get
relief in income-tax” and “to receive rent income”. The values of x2 in this three cases
were 0.580, 0.248 and 0.082 respectively suggesting that there is no association between
these reasons and the age of the respondents. Thus, no association was found between the
age of respondents and any of the above reasons for taking home loan.

“Desire for Big House”
< 30 yrs 06 10 16
17.1% 15.4% 16.0%
(37.5%) (62.5%) (100.0%)
31 to 40 yrs 15 33 48
42.9% 50.8% 48.0%
(31.3%) (68.8%) (100.0%)
> 4 yrs 14 22 36
40.0% 33.8% 36.0%
(38.9%) (61.1%) (100.0%)
Total 35 65 100
100.0% 100.0% 100.0%
(35.0%) (65.0%) (100.0%)
value 0.580
180
“To Get Relief in Income Tax”

< 40 yrs 20 44 64
60.6% 65.7% 64.0%
(31.3%) (68.8%) (100.0%)
40 to 50 yrs 08 14 22
24.2% 20.9% 22.0%
(36.4%) (63.6%) (100.0%)
> 50 yrs 05 09 14
15.2% 13.4% 14.0%
(35.7%) (64.3%) (100.0%)
Total 33 67 100
100.0% 100.0% 100.0%
(33.0%) (67.0%) (100.0%)
value 0.248

“To Receive Rent Income”

< 40 yrs 14 50 64
66.7% 63.3% 64.0%
(21.9%) (78.1%) (100.0%)
> 50 yrs 07 29 36
33.3% 36.7% 36.0%
(19.4%) (80.6% (100.0%)
Total 21 79 100
100.0% 100.0% 100.0%
(21.0%) (79.0%) (100.0%)
value 0.082
181
 Relation between Educational Qualifications of the Respondents and
the Various Reasons for Home Loans
Table 4.38 Educational Qualifications of Respondents and Reason for Home Loan –
“In Place of Rented Property”
Educational Qualification of Respondents
Response Total
Below Graduate Above Graduate
Yes 06 06 12
50.0% 50.0% 100.0%
(27.3%) (07.7%) (12.0%)
No 16 72 88
18.2% 81.8% 100.0%
(72.7%) (92.3%) (88.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 06.230
The relevant data are provided in table 4.38. It is clear from the table 4.38 that
among the respondents who were non-graduates and above graduates, the percentages
for respondents who declared the reason for taking home loan as “in place of rented
property” were 27.3% and 7.7% respectively.
These figures show a clear association between educational qualification of the
respondents and this particular reason.
x2 test was performed to verify the above conclusion.
Here,
H0 : There is no association between education qualification of the respondents
and the reason “in place of rented property”.
H1 : There is association between educational qualifications of the respondents
and the reason “in place of rented property”.
Here, the calculated value of x2 is 6.23 with significance level of 0.013. Since, this
level is less than 0.05, H0 is rejected at 5% level. It means that there is relationship
between educational qualifications of respondents and the reason “in place of rented
property”, and less educated respondents seem to have a tendency for taking home loan
to buy a house “in place of rented property.”
182
For other reasons for taking home loan also, x2 test was performed and in case of
all the other reasons, viz. “for investments”, “desire for big house”, “to get relief in
income tax”, “to receive rent income” and “others”, no relationship was found between
them and educational qualifications of the respondents. The relevant data are given below
in table 4.39 to 4.43.
Response Total
Yes 08 29 37
21.6% 78.4% 100.0%
(36.4%) (37.2%) (37.0%)
No 14 49 63
22.2% 77.8% 100.0%
(63.6%) (62.8%) (63.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.05
Table 4.40 Educational Qualification of Respondents and Reason for Home Loan –
Response Total
Yes 05 30 35
14.3% 85.7% 100.0%
(22.7%) (38.5%) (35.0%)
No 17 48 65
26.2% 73.8% 100.0%
(77.3%) (61.5%) (65.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.867
183

Response Total
Yes 05 28 33
15.2% 84.8% 100.0%
(22.7%) (35.9%) (33.0%)
No 17 50 67
25.4% 74.6% 100.0%
(77.3%) (64.1%) (67.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.346
“To Receive Rent Income by Purchase of New House”

Response Total
Yes 07 14 21
33.3% 66.7% 100.0%
(31.8%) (17.9%) 21.0%
No 15 64 79
19.0% 81.0% 100.0%
(68.2%) (82.1%) (78.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.990
184
“Others”
Response Total
Yes 01 03 04
25.0% 75.0% 100.0%
(4.5%) (3.8%) (4.0%)
No 21 75 96
21.9% 78.1% 100.0%
(95.5%) (96.2%) (96.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.022
 Relation between the Occupation of Respondents and the Various

Reasons for taking Home Loans
Relation between the Occupation of respondents and various reasons for
taking home loans like “in place of rented property”, “for investment”, “for desire
of big house”, “to get relief in income-tax”, “to receive rental income” was
analyzed by constructing two-way tables as given below.
Table 4.44 Occupation of Respondents and Reason for Home Loan – “In
Place of Rented Property”
Occupation of Respondents
Response Total
Service Business and Others
Yes 06 06 12
50.0% 50.0% 100.0%
(15.4%) (9.8%) (12.0%)
No 33 55 88
37.5% 62.5% 100.0%
(84.6%) (90.2%) (88.0%)
Total 39 61 100
39.0% 61.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.694
185
Table 4.45 Occupation of Respondents and Reason for Home Loan –
Response Total
Yes 12 25 37
32.4% 67.6% 100.0%
(30.8%) (41.0%) (37.0%)
No 27 36 63
42.9% 57.1% 100.0%
(69.2%) (59.0%) (63.0%)
Total 39 61 100
39.0% 61.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.065

Response Total
Yes 13 22 35
37.1% 62.9% 100.0%
(33.3%) (36.1%) (35.0%)
No 26 39 65
40.0% 60.0% 100.0%
(66.7%) (63.9%) (65.0%)
Total 39 61 100
39.0% 61.0% 100.0%
(100.0%) (100.0%0 (100.0%)
value 0.078
186
“To Get Relief in Income-Tax”
Response Total
Yes 10 23 33
30.3% 69.7% 100.0%
(25.6% (37.7%) (33.0%)
No 29 38 67
43.3% 56.7% 100.0%
(74.4%) (62.3%) (67.0%)
Total 39 61 100
39.0% 61.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.566

“To Receive Rental Income”
Response Total
Yes 07 14 21
33.3% 66.7% 100.0%
(17.9%) (23.0%) (21.0%)
No 32 47 79
40.5% 59.5% 100.0%
(82.1%) (77.0%) (79.0%)
Total 39 61 100
39.0% 61.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.359
187
Here,
H0 : There is no association between occupation of the respondents and the
various reasons for home loans.
H1 : There is association between occupation of the respondents and the
The values of were 0.694, 1.065, 0.078, 1.566 and 0.359 respectively, which
were all insignificant.
Thus, no relationship was found between the occupation of respondents and
The relevant data are given in above table 4.44 to 4.48.
 Relation between Reasons for Home Loan of Respondents and the

Types of Bank
Relation between reasons likes – “for investment”, “for desire of big
house”, “to receive rent income” and the type of banks from which the
respondents have taken the home loan, viz. BOB and SPB are enumerated below.
The relevant data are given in Table 4.49 to 4.52. The values of were
0, 3.475, 2.154 and 0.542 respectively, were all insignificant. So, no relationship
was found between the individual reasons for taking home loan and the types of
bank.
Table 4.49 Type of Banks and Reason for Home Loan –
Type of Banks
Response Total
BOB SPB
Yes 06 06 12
50.0% 50.0% 100.0%
(12.0%) (12.0%) (12.0%)
No 44 44 88
50.0% 50.0% 100.0%
(88.0%) (88.0%) (88.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.000
188
Type of Banks
Response Total
BOB SPB
Yes 23 14 37
62.2% 37.8% 100.0%
(46.0%) (28.0%) (37.0%)
No 27 36 63
42.9% 57.1% 100.0%
(54.0%) (72.0%) (63.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 3.475

Type of Banks
Response Total
BOB SPB
Yes 14 21 35
40.0% 60.0% 100.0%
(28.0%) (42.0%) (35.0%)
No 36 29 65
55.4% 44.6% 100.0%
(72.0%) (58.0%) (65.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 2.154
189
Type of Banks
Response Total
BOB SPB
Yes 12 09 21
57.1% 42.9% 100.0%
(24.0%) (18.0%) (21.0%)
No 38 41 79
48.1% 51.9% 100.0%
(76.0%) (82.0%) (79.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.542
 Relation between the reason “To Get Relief in Income Tax” and the
Type of Banks
The relevant data are provided in table 4.53 as given below, the percentages of the
respondents, who wanted to “get relief in income-tax”, were 46% in case of BOB and
20% in case of SPB. Thus, there seems to be a significance difference between these two
percentages.

Type of Banks
Response Total
BOB SPB
Yes 23 10 33
69.7% 30.3% 100.0%
(46.0%) (20.0%) (33.0%)
No 27 40 67
40.3% 59.7% 100.0%
(54.0%) (80.0%) (67.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 7.644
190
Therefore, these figures show a clear association between the reason for getting
relief in income tax and the type of banks. Test was also performed to verify the above
conclusion.
H0 : There is no association between the reason “to get relief in income tax”
and the type of banks.
H1 : There is association between the reason “to get relief in income tax” and
the type of banks.
Here, the calculated value of is 7.644 which has a significance level of 0.006.
Since, this level is less than 0.01; H0 is rejected at 1% level. It means that there is (highly
significant) relationship between this reason “to get relief and type of banks.” Therefore,
the proportion of customers of BOB taking home loans for income tax purpose is
significantly larger as compared that of SPB.
 Relation between Sanctioned Loan Amount of Respondents and the

Type of Banks
The relevant data are provided in table 4.54 given below. It was found that BOB
sanctioned the loan amount of `1 Lakh to 5 Lakhs to 20% of their customers whereas in
case of SPB it is 46%. Similarly the loan amount of ` 5 Lakhs to 10 Lakhs was
sanctioned to 38% and 34% of the customers of BOB and SPB respectively. The loan
amount of more than ` 10 Lakhs was sanctioned to 42% and 20%, of the customers of
BOB and SPB respectively. It seems that on an average BOB sanctioned more loan
amount than SPB.
191
Table 4.54 Type of Banks and Sanctioned Loan Amount
Type of Banks
Amount (` In Lakhs) Total
BOB SPB
1 to 5 10 23 33
30.3% 69.7% 100.0%
(20.0%) (46.0%) (33.0%)
5 to 10 19 17 36
52.8% 47.2% 100.0%
(38.0%) (34.0%) (36.0%)
> `10 21 10 31
67.7% 32.3% 100.0%
(42.0%) (20.0%) (31.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 9.136
The above conclusion is also confirmed by the test.

Here,
H0 : There is no association between sanctioned loan amount of the
respondents and the type of banks.
H1 : There is an association between sanctioned loan amount of the
respondents and the type of banks.
In this case the value of is 9.136 which has a probability of 0.010. Since, this
probability level is equal to 0.01, we reject H0. i.e. there is a highly significant association
between the sanctioned loan amount and the type of banks.
 Relation between various Reasons for Taking Home Loan and Yearly
Income of Respondents
The relevant data are given in table 4.55 to 4.57. The values of x2 were 1.263,
0.191 and 0.705 respectively, which were all insignificant, so no relationship is found
between these reasons for home loan and yearly income.
192
Table 4.55 Yearly Income of Respondents and Reason for Home Loan –
Yearly Income ( ` in lakhs )
Response <1.8 >1.8 Total
Yes 05 07 12
41.7% 58.3% 100.0%
(17.9%) (09.7%) (12.0%)
No 23 65 88
26.1% 73.9% 100.0%
(82.1%) (90.3%) (88.0%)
Total 28 72 100
28.0% 72.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.263
Yearly Income ( ` in lakhs)
Response Total
<1.8 1.8 to 2.4 >2.4
Yes 09 08 18 35
25.7% 22.9% 51.4% 100.0%
(32.1%) (38.1%) (35.3%) (35.0%)
No 19 13 33 65
29.2% 20.0% 50.8% 100.0%
(67.9%) (61.9%) (64.7%) (65.0%)
Total 28 21 51 100
28.0% 21.0% 51.0% 100.0%
(100.0%) (100.0%) (100.0%) (100.0%0
value 0.191
193
Yearly Income (` in lakhs)
Response Total
<2.4 >2.4
Yes 12 09 21
57.1% 42.9% 100.0
(24.5%) (17.6%) (21.0%)
No 37 42 79
46.8% 53.2% 100.0%
(75.5%) (82.4%) (79.0%)
Total 49 51 100
49.0% 51.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.705
 Relation Between the Reason “To Get Relief in Income Tax” and
Yearly Income
The relevant data are provided in table 4.58 given below.
Here,
H0 : There is no association between reason for home loan to get relief in
income tax and yearly income of respondents.
H1 : There is association between reason for home loan to get relief in income
tax and yearly income of respondents.
The value of x2 is 20.149 which has probability of 0.000. Since, this probability
level is less than 0.01. So, we reject H0 i.e. There is an association between the reason “to
get relief in income-tax” and yearly income of respondents. Therefore, it may be
concluded that the respondents, having higher annual income, have a stronger tendency to
take home loan for getting relief in income tax.
194
Yearly Income ( ` in lakhs)
Response
<2.4 2.4 to 3.6 >3.6 Total
Yes 06 15 12 33
18.2% 45.5% 36.4% 100.0%
(12.2%) (46.9%) (63.2%) (33.0%)
No 43 17 07 67
64.2% 25.4% 10.4% 100.0%
(87.8%) (53.1%) (36.8%) (67.0%)
Total 49 32 19 100
49.0% 32.0% 19.0% 100.0%
(100.0%) (100.0%) (100.0%) (100.0%0
value 20.149
 Relation between the Utilization of Various Types of Bank Services and

Type of Banks of Respondents
(a) Relation between the utilization of saving account service and type of
Banks from which respondents have taken loan.
The relevant data are provided in table 4.59. It is clear from the below
table, that percentages of respondents who utilized savings account service from
BOB and SPB were 78% and 48% respectively.
Since there is a wide difference between these two percentages, it can be
said that a clear association between utilization of saving account service and the
type of banks exists as far as our sample respondents are concerned.
Table 4.59 Type of Banks and Utilization of Saving Account Service
Type of Banks
Response Total
BOB SPB
Yes 39 24 63
61.9% 38.1% 100.0%
(78.%) (48.0%) (63.0%)
No 11 26 37
29.7% 70.3% 100.0%
(22.0%) (52.0%) (37.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 9.653
195
x2 test was performed to verify the above conclusion.
Here,
H0 : There is no association between utilization of saving A/C service and type
of banks of respondents.
H1 : There is association between utilization of saving A/C service and type of
bank of respondents.
Here, the calculated value of x2 is 9.653 with significant level of 0.002. Since, this
level is less than 0.05, H0 is rejected as 5% level. It means that there is a relationship
between utilization of services of saving a/c of the bank and type of banks from which
respondents have taken loan. So the above conclusion is substantiated by x2 test.
(b) Similar analysis was done for testing the association between the types of banks
and various other services utilized like- overdraft, cash credit and locker. The
values of x2 in these three cases were 0.161, 0.079 and 0.529 respectively
suggesting that there is no association between the various services utilized by the
customers and the types of bank from which the respondents have taken loan.
Table 4.60 Type of Banks and Utilization of Overdraft Service

Type of Banks
Response Total
BOB SPB
Yes 10 05 15
66.7% 33.3% 100.0%
(20.0%) (10.0%) (15.0%)
No 40 45 85
47.1% 52.9% 100.0%
(80.0%) (90.0%) (85.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.961
196
Table 4.61 Type of Banks and Utilization of Cash Credit Service
Type of Banks
Response Total
BOB SPB
Yes 03 0 03
100.0% 0.0% 100.0%
(6.0%) (0.0%) (3.0%)
No 47 50 97
48.5% 51.5% 100.0%
(94.0%) (100.0%) (97.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 3.093
Table 4.62 Type of Banks and Utilization of Locker Service

Type of Banks
Response Total
BOB SPB
Yes 19 16 35
54.3% 45.7% 100.0%
(38.0%) (32.0%) (35.0%)
No 31 34 65
47.7% 52.3% 100.0%
(62.0%) (68.0%) (65.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.396
197
 Relation between Age of the Respondents and the Various Reasons for
Selecting a Bank
Relation between Age and the various reasons for selecting a bank like
“less Interest Rate”, “speedy process of loan sanctioned”, “less processing fees”,
“co-operative staff”, “nearer to residence”. The relevant data are given in tables
4.63 to 4.67.
Table 4.63 Age of Respondents and Reason for Selecting the Bank –
“Less Interest Rate”
Age of Respondents
Response Total
< 40 years > 40 years
Yes 42 20 62
67.7% 32.3% 100.0%
(65.6%) (55.6%) (62.0%)
No 22 16 38
57.9% 42.1% 100.0%
(34.4%) (44.4%) (38.0%)
Total 64 36 100
64.0% 36.0% 100.0%
(100.0%) (100.0% (100.0%)
value 0.992
Table 4.64 Age of Respondents and Reason for Selecting the Bank – “Speedy
Process of Loan Sanction”
Age of Respondents
Response Total
Yes 46 21 67
68.7% 31.3% 100.0%
(71.9%) (58.3%) (67.0%)
No 18 15 33
54.5% 45.5% 100.0%
(28.1%) (41.7%) (33.0%)
Total 64 36 100
64.0% 36.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.911
198
“Less Processing Fees and Other Charges”
Age of Respondents
Response Total
Yes 57 29 86
66.3% 33.7% 100.0%
(89.1%) (80.6%) (86.0%)
No 07 07 14
50.0% 50.0% 100.0%
(10.9%) (19.4%) (14.0%)
Total 64 36 100
64.0% 36.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.385
“Co-operative Staff”
Age of Respondents
Response Total
Yes 48 28 76
63.2% 36.8% 100.0%
(75.0%) (77.8%) (76.0%)
No 16 08 24
66.7% 33.3% 100.0%
(25.0%) (22.2%) (24.0%)
Total 64 36 100
64.0% 36.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.097
199
“Nearer to Residence”
Age of Respondents
Response Total
Yes 44 23 67
65.7% 34.3% 100.0%
(68.8%) (63.9%) (67.0%)
No 20 13 33
60.6% 39.4% 100.0%
(31.3%) (36.1%) (33.0%)
Total 64 36 100
64.0% 36.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.246
Relation between age and the various reasons for selecting a bank are like “less
interest rate”, “speedy process of loan sanctioned”, “less processing fees”, “co-operative
staff”, “nearer to residence”.
The values of x2 in these cases were 0.992, 1.911, 1.385, 0.097, and 0.246
respectively which were all insignificant. So, no significant relationship found between
the age of respondents and reason for selecting the bank.
 Relation between the Mode of Repayment and the Type of Banks
Table 4.68 Mode of Repayment of Loan and Type of Banks

Mode of Repayment
Type of Banks Total
By Cash and Others By Cheque ECS
BOB 22 20 08 50
44.0% 40.0% 16.0% 100.0%
(68.8%) (69.0%) (20.5%) (50.0%)
SPB 10 09 31 50
20.0% 18.0% 62.0% 100.0%
(31.3%) (31.0%) (79.5%) (50.0%)
Total 32 29 39 100
32.0% 29.0% 39.0% 100.0%
(100.0%) (100.0%) (100.0%) (100.0%)
value 22.237
200
Table 4.68 provides two-way classifications of the respondents according to mode
of repayment and the type of banks. Examining the data, it is found that among the BOB
customers, 44%, 40% and 16% customers preferred to make repayment by cash and
others, by cheque and through ECS respectively. In the case of SPB customers the
corresponding figures were 20%, 18% and 62% suggesting that the mode of repayment is
associated with the type of banks.
Here,
H0: There is no association between the mode of repayment and the type of
banks.
H1: There is an association between the mode of repayment and the type of
banks.
The value of x2 was found to be 22.237 which is significant at 1% level.
Therefore, H0 is rejected. Thus, the above conclusion that there is a strong association
between the mode of repayment and type of banks is confirmed by the x2 test.
 Sources of Knowledge about Home Loan and Type of Banks

A two-way classification of the respondents was done and an attempt was made to
determine whether any association exists between the source of knowledge about the
home loan, viz. by advertisement, by bank, by C.A. / loan consultant and the type of
banks. It was found that there did not exist any association between these two attributes.
 Relation between Education and Mode of Repayment

Table 4.69 given below provides a two way classification of the respondents by
two attributes, viz., Educational Qualification and Mode of Repayment of Loan.
201
Table 4.69 Educational Qualifications of the Respondents and
Mode of Repayment of Loan
Mode of Repayment
Education Level Total
Below Graduate 07 05 10 22
31.8% 22.7% 45.5% 100.0%
(21.9%) (17.2%) (25.6%) (22.0%)
Above Graduate 25 24 29 78
32.1% 30.8% 37.2% 100.0%
(78.1%) (82.8%) ((74.4%) (78.0%)
Total 32 29 39 100
32.0% 29.0% 39.0% 100.0%
(100.0%) (100.0%) (100.0%) (100.0%)
value 0.684
As can been seen from this table, in the “below graduate” category the percentage
of customers who made repayment by cash, by cheque and through ECS are 31.8%,
22.7% and 45.5% respectively. Similarly, the percentage for the “above graduate”
category are 32.1%, 30.8% and 37.2% respectively.
These figures suggest that there is no association between educational
qualification and mode of repayment of loan.
Here,
H0 : There is no association between the mode of repayment and the
educational qualification of respondents.
H1 : There is an association between the mode of repayment and the
educational qualification of respondents.
The value of x2 is 0.684 which has a probability of 0.71 which implied that H0 is
not rejected. Therefore, there is no association between educational qualification and
mode of repayment.
202
 Relation between the occupation of the Respondents and Mode of
Repayment
In order to determine whether there exists any association between the profession
of the respondents and mode of repayment, the respondents were classified into two and
three categories respectively and the relevant data are given in table 4.70 given below.
Table 4.70 Occupation of Respondents and Mode of Repayment
Mode of Repayment
Occupation Total
Service 11 09 19 39
28.2% 23.1% 48.7% 100.0%
(34.4%) (31.0%) (48.7%) (39.0%)
Business and Others 21 20 20 61
34.4% 32.8% 32.8% 100.0%
(65.6%) (69.0%) (51.3%) (61.0%)
Total 32 29 39 100
32.0% 29.0% 39.0% 100.0%
(100.0%) (100.0%) (100.0%) (100.0%)
value 2.609
It is found here that the percentage of the respondents who preferred mode of
repayment such as “by cash and others”, “by cheque and through ECS” among the
“service” and “business and others” categories are 28.2%, 23.1%, 48.7% and 34.4%,
32.8% and 32.8% respectively, suggest that there is no relationship between these two
attributes.
The same conclusion is supported by x2 test.
H0 : There is no association between the mode of repayment and the
occupation of respondents.
H1 : There is an association between the mode of repayment and the
occupation of respondents.
The calculated value of x2 in this case is 2.609 with the probability level of 0.271.
Therefore, H0 is not rejected, and hence there is no association between the occupation of
the respondents and mode of repayment of loan.
203
 Relation between Reason for Selecting Bank “Lower Interest Rate”
and the Type of Banks
Table 4.71 given below shows relation between reason for selecting bank (lower
Interest Rate) and the type of banks.
Table 4.71 Service – Lower Interest Rate and Type of Banks

Type of Banks
Response Total
BOB SPB
Yes 48 22 70
68.6% 31.4% 100.0%
(96.0%) (44.0%) (70.0%)
No 02 28 30
6.7% 93.3% 100.0%
(4.0%) (56.0%) (30.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 32.190
On examining the data, it is found that the percentage of respondents who selected
the bank for lower interest rate was 96% in the case of BOB and 44% in the case of SPB.
Thus, it seems that there is an association between the selection of the bank for lower
interest rate and the type of banks.
Here,
H0 : There is no association between the selecting bank for rate of interest and
the type of banks
H1 : There is an association between the selecting bank for rate of interest and
the type of banks
In this case the value of x2 is 32.190 which has a probability of 0. Since, this level
is highly significant, H0 stands rejected and above conclusion is confirmed.
204
 Relation between Complaints Entertained and Solved and the Type of
Banks
Table 4.72 Complaints Entertained and Solved and the Type of Banks
Type of Banks
Response Total
BOB SPB
Yes 22 44 66
33.3% 66.7% 100.0%
(44.0%) (88.0%) (66.0%)
No 28 06 34
82.4% 17.6% 100.0%
(56.0%) (12.0%) (34.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 21.569
Examining the data provided in the above table 4.72, it is found that the
percentage of respondents in Bank of Baroda whose complaints were entertained and
solved is 44% and in case of SPB it is 88%. Thus, it seems that there is an association
between percentage of customers whose complaints are entertained and solved and type
of banks.
Here,
H0 : There is no association between the percentage of customers whose
complaints are entertained and solved and the type of banks.
H1 : There is an association between the percentage of customers whose
complaints are entertained and solved and the type of banks.
In this case the value of x2 is 21.569, which has a probability of 0. Hence, this
level is highly significant. H0 is rejected. It means there is an association between
complaints entertained and solved and the type of banks from which respondents have
taken loan. A much higher proportion of customers of SPB is satisfied in this respect as
compared to BOB.
205
 Relation between the Type of Banks (Nationalized or Non-Nationalized)
to which a Respondent would like to Switchover, if he is asked to do so
and the Type of Banks from which he has taken the Home Loan
The relevant data are given in table 4.73 given below,
Table 4.73 Whether a Nationalised Bank Preferred and Type of Banks

Type of Banks
Response Total
BOB SPB
Yes 44 33 77
57.1% 42.9% 100.0%
(88.0%) (66.0%) (77.0%)
No 06 17 23
26.1% 73.9% 100.0%
(12.0%) (34.0%) (23.0%)
Total 50 50 100
50.0% 50.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 6.832
According to the information provided in this table only 12% of the respondents
who took home loan from BOB were not ready to switchover to any other nationalized
bank, if they were asked to shift to any other bank. Since, similar percentage was almost
5 times (66%) in the case of SPB customers, it is clear that the customers of SPB were
much more interested in switching over to the other type of banks (nationalized bank),
given a choice.
H0 : There is no association between the type of banks to which a respondent
would like to switch over (if he/she is given a choice) and the type of
banks.
H1 : There is an association between the type of banks to which a respondent
would like to switch over (if he/she is given a choice) and the type of
banks.
The above finding is also substantiated by the x2 test. In this case the calculated
value of x2 was found to be 6.832, which is significant at 1% level. H0 is rejected, i.e.
206
there is strong association between the type of banks and whether a nationalized bank is
preferred if a customer wishes to switch over to another bank.
 Relation between the Age of Respondents and the Amount of Loan

Applied For
The related data are given in table 4.74.
Table 4.74 Age of Respondents and Amount of Home Loan Applied For
Home Loan Amount (` In lakhs)
Age of Respondents (years) Total
<10 >10
<30 10 06 16
62.5% 37.5% 100.0%
(15.4%) (17.1%) (16.0%)
31 to 40 29 19 48
60.4% 39.6% 100.0%
(44.6%) (54.3%) (48.0%)
41 to 50 17 05 22
77.3% 22.7% 100.0%
(26.2%) (14.3%) (22.0%)
> 50 09 05 14
64.3% 35.7% 100.0%
(13.8%) (14.3%) (14.0%)
Total 65 35 100
65.0% 35.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 1.947
The percentages of the respondents whose age were below 30 years, between 31
to 40 years, between 41 to 50 years and more than 50 years and had applied for the home
loan of less than ` 10 lakhs are 15.4%, 44.6%, 26.2% and 13.8% respectively and the
respondents who applied for a home loan amount of more than ` 10 lakhs were 17.1%,
54.3%, 14.3% and 14.3% respectively. It seems that the age of the respondents does not
have any effect on the application of home loan amount.
207
H0 : There is no association between age of the respondents and the amount of
home loan applied for.
H1 : There is an association between age of the respondents and the amount of
home loan applied for.
In this case the value of x2 is 1.947 which has probability level of 0.584. So, H0
cannot be rejected, i.e. there is no association between age of the respondents and
application of home loan amount.
This confirms the conclusion derived earlier.
 Relation between Amount of Home Loan Applied for and Yearly Income
The data on amount of home loan and yearly income are given in table 4.75
below.
Table 4.75 Application of Amount of Home Loan and yearly Income of Respondents
Amount (` In lakhs) Total
<2.4 > 2.4
1 to 5 25 07 32
78.1% 21.9% 100.0%
(51.0%) (13.7%) (32.0%)
5 to 10 17 16 33
51.5% 48.5% 100.%
(34.7%) (31.4%) (33.0%)
>10 07 28 35
20.0% 80.0% 100.0%
(14.3%) (54.9%) (35.0%)
Total 49 51 100
49.0% 51.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 22.724
It is found that the percentage of respondents with annual income of less than `
2.40lakh and who applied for home loan amounting ` 1 to 5 lakhs, ` 5 to 10 lakhs and
208
more than `10 lakhs, were 51%, 34.7% and 14.3% respectively, and the corresponding
figures for the respondents whose income is more than ` 2,40,000 were 13.7%, 31.4%
and 54.9% respectively of the above mentioned groups of the home loan amount applied
for. These figures indicate that there is an association between application of home loan
amount and yearly income.
The above conclusion was also confirmed by x2 test
H0 : There is no association between the amount of home loan and yearly
income.
H1 : There is an association between the amount of home loan and yearly
income.
Here, the calculated value of x2 is 22.724 with the significance level of 0.000.
Since, this level is less than 0.01, H0 is rejected. It means that there is a relationship
between the amount of home loan applied for and the yearly income. As expected, the
amount of home loan applied varies directly with the annual income of the respondents.
 Relation between Loan Amount Applied for and Occupation of Respondents
Table 4.76 Amount of Home Loan Applied for and Occupation of Respondents
1 to 5 20 12 32
62.5% 37.5% 100.0%
(51.3%) (19.7%) (32.0%)
5 to 10 12 21 33
36.4% 63.6% 100.%
(30.8%) (34.4%) (33.0%)
>10 07 28 35
20.0% 80.0% 100.0%
(17.9%) (45.9%) (35.0%)
Total 39 61 100
39.0% 61.0% 100.0%
(100.%) (100.0%) (100.0%)
value 12.836
209
The relation between home loan amount applied for and the types of the
occupation of the respondents can be examined on the basis of relevant data given in
table 4.76.
The percentage of respondents who apply for home loan amount of ` 1 to 5 lakhs,
` 5 to 10 lakhs and more than ` 10 lakhs were 51.3%, 30.8% and 17.9% among the
service class and the respondents whose occupation were business or others were 19.7%,
34.4% and 45.9% comparing this two sets of percentage, one can say that there is an
association between the amount of home loan applied for by the respondents and their
occupation categories.
The above conclusion is also confirmed by the x2 test
Here,
H0 : There is no association between home loan amount applied for and the
types of the occupation of the respondents
H1 : There is an association between home loan amount applied for and the
types of the occupation of the respondents
In this case, the value of x2 is 12.836 with a probability of 0.002. Since this
probability is less than 0.01. H0 is rejected at 1% level. It seems that there is a highly
significant relationship between the amount of home loan applied for and the occupation
of the respondents. In other words, “business class and others” tend to apply for a higher
amount of home loans as compared to the respondents belonging to service class.
 Relation between the Amount of Home Loan Applied for and

Educational Qualification of the Respondents
The data related to the relation between the amounts of home loan applied for and
the educational qualification of the respondents is given in Table 4.77.
210
Table 4.77 Application of Home Loan Amount and Educational Qualification of
Respondents
Amount (` In lakhs) Educational Qualification
Total
1 to 5 09 23 32
28.1% 71.9% 100.0%
(40.9%) (29.5%) (32.0%)
5 to 10 10 23 33
30.3% 69.7% 100.%
(45.5%) (29.5%) (33.0%)
>10 03 32 35
8.6% 91.4% 100.0%
(13.6%) (41.0%) (35.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 5.703
The percentages of “below graduate” respondents who applied for home loan of
`1 to 5 lakhs, 5 to 10 lakhs and more than 10 were 40.9%, 45.5% and 13.6% respectively
and within the “above graduates” category, the corresponding percentages were 29.5%,
29.5% and 41% respectively. Therefore it seems that there is an association between
application of home loan amount and educational qualification of respondents. However,
the association is not that strong.
Here,
H0 : There is no association between application of home loan amount and
educational qualification.
H1 : There is an association between application of home loan amount and
educational qualification.
In this case the value of x2 is 5.703 with a probability of 0.058. Since the
probability is less than 0.10 but very close to 0.05, H0 is rejected at 10% level. It means
that there is a relationship between application of home loan amount and educational
qualification although the relationship is not that strong.
211
 Relation between the Amount of Loan Sanctioned and the Age of the
Respondents
The data provided in Table 4.78, depict the relation between loan amount
sanctioned and the age of respondents.
Table 4.78 Amount of Sanctioned Loan and Age of Respondents

Age of Respondents
< 40 years >40 years
< 10 43 26 69
62.3% 37.7% 100.0%
(67.2%) (72.2%) (69.0%)
> 10 21 10 31
67.7% 32.3% 100.0%
(32.8%) (27.8%) (31.0%)
Total 64 36 100
64.0% 36.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 0.273
The percentages of respondents for whom the loan amount sanctioned was less
than one million and more than one million were 67.2% and 32.8% in “below 40” age
group respectively while for the “above 40” age group the corresponding percentages
were 72.2% and 27.8%. Since there is not much difference in the corresponding
percentages, one may conclude that there is no relationship between these two attributes.
In order to substantiate the above conclusion, x2 test was also performed.
H0 : There is no association between sanction loan amount and age of
respondents.
H1 : There is an association between sanction loan amount and age of
respondents
The value of x2 is 0.273 having a probability of 0.601. Since, this probability level
is not less than 0.05 or 0.01, we do not reject H0, i.e., there is no association between
amount of loan sanctioned and the age of respondents.
212
 Relation between Sanctioned Loan Amount and Yearly Income
The relevant data are provided in Table 4.79 given below.
Table 4.79 Amount of Sanction Loan amount and Yearly Income of Respondents
Amount (` in lakhs) Total
< 2.4 > 2.4
< 10 44 25 69
63.8% 36.2% 100.0%
(89.8%) (49.0%) (69.0%)
>10 05 26 31
16.1% 83.9% 100.0%
(10.2%) (51.0%) (31.0%)
Total 49 51 100
49.0% 51.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 19.425
The percentages of respondents for whom the sanctioned loan amount was less
than one million and more than one million were 89.8% and 10.2% in “in less than `
2,40,000 yearly income group” while for the “more than ` 2,40,000 yearly income
group”, the corresponding percentages were 49% and 51%. Since there is significant
difference in the corresponding percentages, there is a direct relationship between the
loan amount sanctioned and yearly income.
In order to verify the above conclusion, x2 test was also performed.
H0 : There is no association between the loan amount sanctioned and yearly
income
H1 : There is an association between the loan amount sanctioned and yearly
income
The value of x2 is 19.425 which have probability of 0. Since, this probability level
is less than 0.01 level, we reject the H0 i.e. there is significant positive association
between sanction loan amount and yearly income.
213
 Relation between the Loan Amount Sanctioned and the Occupation of
Respondents
Data regarding relation between the loan amount sanctioned and the profession of
respondents are given in Table 4.80 below.
Table 4.80 Loan Amount Sanction and Occupation of Respondents

< 10 33 36 69
47.8% 52.2% 100.0%
(84.6%) (59.0%) (69.0%)
> 10 06 25 31
19.4% 80.6% 100.0%
(15.4%) (41.0%) (31.0%)
Total 39 61 100
39.0% 61.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 7.288
The percentages of respondents for whom the loan amount was less than one
million and more than one million were 84.6% and 15.4% for the service persons
(salaried persons) while for the business or others were 59% and 41% respectively. There
is a significant difference between these percentages which implies that there is a
relationship between the loan amount sanctioned and the Occupation of respondents.
H0 : There is no association between the loan amount sanctioned and the
Occupation of respondents
H1 : There is an association between the loan amount sanctioned and the
Occupation of respondents
In this case the value of x2 is 7.288 which have probability of 0.007. Since, the
probability is less than 0.01 levels, so we reject the H0. i.e. there is relation between
sanction loan amount and Occupation of respondents. Generally “salaried persons” are
sanctioned lower amount of home loan as compared to “businessmen and others” This
confirms the earlier conclusion.
214
 Relation between Sanctioned Loan Amount and Educational
Qualification of the Respondents
Data on the amount of loan sanctioned and educational qualification of the
respondents are given below in table 4.81.
Table 4.81 Loan Amount Sanctioned and Educational Qualification of Respondents

<10 19 50 69
27.5% 72.5% 100.0%
(86.4%) (64.1%) (69.0%)
> 10 03 28 31
9.7% 90.3% 100.0%
(13.6%) (35.9%) (31.0%)
Total 22 78 100
22.0% 78.0% 100.0%
(100.0%) (100.0%) (100.0%)
value 3.976
The percentages of respondents for whom the amount of loan sanctioned was less
than one million and more than one million was 86.4% and 13.6% in “below graduate”
group while for the “above graduate” group the corresponding percentages were 64.1%
and 35.9%. Since there is a substantial difference in the corresponding percentages, it
may be said that there is a relationship between the amount of loan sanctioned and
educational qualifications.
In order to substantiate the above conclusion, test was also performed.
H0 : There is no association between the amount of loan sanctioned and
educational qualification
H1 : There is an association between the amount of loan sanctioned and
educational qualification
Here the value of was found to be 3.976 which has probability of 0.046. As
this probability is less than 0.05, we reject H0 i.e. there is no association between the
amount of loan sanctioned and educational qualification of the respondents. So there is an
215
association between loan amount sanctioned and educational qualification of the
respondents.
 Relationship between Type of Banks and the Number of Days Taken

for Getting the loan Sanctioned
The information on relationship between types of bank from which respondents
had taken loan and the number of days taken for getting the amount of loan sanctioned is
shown in below table 4.82.
Table 4.82 Days Taken for Sanctioning Loan and Type of Banks
Days taken for Sanctioning
Type of Banks Loan Total
< 15 days > 15 days
BOB 36 11 47
76.6% 23.4% 100.0%
(75.0%) (25.0%) (51.1%)
SPB 12 33 45
26.7% 73.3% 100.0%
(25.0%) (75.0%) (48.9%)
Total 48 44 100
52.2% 47.8% 100.0%
(100.0%) (100.0%) (100.0%)
value 2.967
The percentages of respondents who have taken loan from BOB and SPB and
who took less than 15 days for getting the loan sanctioned were 75% and 25% while for
“more than 15 days category” the corresponding percentages were 25% and 75%. Since
there is a big difference between these two percentages, it can be seen that there is an
association between the type of banks and the number of days taken for getting the
amount of loan sanctioned.
In order to substantiate the above conclusion, x2 test was also performed.
H0 : There is no association between the types of bank and the number of days
taken for getting the loan sanctioned.
H1 : There is an association between the types of bank and the number of days
taken for getting the loan sanctioned.
216
In this case the value of x2 is 22.967 with a probability of 0. Hence, this
probability level is less than 0.01. We reject H0. i.e. There is highly significant
association between the type of banks from which respondents took loan and the number
of days taken for getting the loan sanctioned.
In general, BOB has taken less time for sanctioning the loan as compared to
SPB.
Table 4.83 Results of Hypotheses Testing

Sr. Hypotheses Associations
No. value
1 There is no association between age of the
respondents and various reasons for home loan
Age – Home loan for Investment 0.824 No
(0.844)
Age – Desire for Big House 0.580 No
(0.748)
Age – To Get relief in Income Tax 0.248 No
(0.883)
Age – To Receive Rent Income 0.082 No
(0.775)
2 There is no association between educational
qualification of respondents and various reasons for
home loan
Education Qualification – In Place of Rented Property 06.230 Yes
(0.013)
Education Qualification – For Investment 0.05 No
(0.944)
Education Qualification – Desire for big house 1.867 No
(0.172)
Education Qualification –To get relief in Income tax 1.346 No
(0.246)
Education Qualification – To receive rent income by 1.990 No
purchased of new house (0.158)
Education Qualification – Others 0.022 No
(0.882)
3 There is no association between Occupation of
respondent and various reasons for home loan.
Occupation of respondents – In place of rented property 0.694 No
(0.405)
Occupation of respondents – For Investment 1.065 No
(0.302)
Occupation of respondents – Desire for Big House 0.078 No
(0.780)
217
No. value
Occupation of respondents – To get relief in income tax 1.566 No
(0.211)
Occupation of respondents – To receive rent income 0.359 No
(0.549)
4 There is no association between type of banks and
reasons of taking home loan.
Type of Banks – In Place of Rented Property 0.000 No
(1.000)
Type of Banks – For Investment 3.475 No
(0.062)
Type of Banks – Desire for Big House 2.154 No
(0.142)
Type of Banks – To Receive Rent Income by Purchase 0.542 No
of New House (0.461)
Type of Banks – To get Relief in Income Tax 7.644 Yes
(0.006)
5 There is no association between Type of Banks and 9.136 Yes
Amount of Sanctioned Loan (0.010)
6 There is no association between Yearly Income and
Reasons for taking home loan
Yearly Income – In place of Rented Property 1.263 No
(0.261)
Yearly Income – For Desire of Big House 0.191 No
(0.909)
Yearly Income – To Receive Rent Income by Purchase 0.705 No
of New House (0.401)
Yearly Income – To Get Relief in Income Tax 20.149 Yes
(0.000)
7 There is no association between Utilization of various
types of bank services and Type of Banks
Utilization of Saving A/C Service – Type of banks 9.653 Yes
(0.002)
Overdraft Service – Type of banks 1.961 No
(0.161)
Cash Credit Service – Type of banks 3.093 No
(0.079)
Locker Service – Type of Banks 0.396 No
(0.529)
8 There is no association between Age of Respondents
and Various reasons for selecting the bank
Age of Respondents – Less Interest Rate 0.992 No
(0.319)
Age of Respondents – Speedy Process of Loan Sanction 1.911 No
(0.167)
218
No. value
Age of Respondents – Less Processing Fees and other 1.385 No
Charges (0.239)
Age of Respondents –Co-operative Staff 0.097 No
(0.755)
Age of Respondents – Nearer to Resident 0.246 No
(0.620)
9 There is no association between Mode of Payment 22.237 Yes
and the type of banks (0.000)
10 There is no association between Education and Mode 0.684 No
of Repayment (0.710)
11 There is no association between Occupation of the 2.609 No
Respondent and Mode of Repayment (0.271)
12 There is no association between Reason for selecting
bank and the Type of banks
Lower Interest Rate – Type of Banks 32.190 Yes
(0.000)
Complain Listened and Solved – Type of Banks 21.569 Yes
(0.000)
13 There is no association between Type of banks Yes
(Nationalized or Non- Nationalized) to which a 6.832
respondents would like to switch-over, if he is asked (0.009)
to do so and type of banks
14 There is no association between Age of Respondents 1.947 No
and the Amount of Loan Applied For (0.584)
15 There is no association between amount of home loan 22.724 Yes
applied for and yearly income (0.000)
16 There is no association between home loan amount 12.836 Yes
applied for and occupation of respondents (0.002)
17 There is no association between amount of home loan 5.703* Yes
applied for and Educational qualification (0.058)
18 There is no association between the amount of 0.273 No
sanctioned loan and age of respondents (0.601)
19 There is no association between sanctioned loan 19.425 Yes
amount and yearly income (0.000)
amount and occupation of respondents (0.007)
amount and educational qualification of responds (0.046)
22 There is no association between days taken for 2.967 Yes
sanctioned loan and type of banks (0.000)
219
Summary of Findings
1) In this study, it was revealed that most of the respondents had gathered
information about the home loan from informal channels of information such as
CA / Loan consultant and friends. There were very few respondents obtaining this
information from formal sources of information like, newspapers, T.V. and
internet. So, it may be suggested that the bank should make more efforts towards
providing necessary information about the home loans through the formal
channels which have much larger coverage as compared to the informal channels.
2) It was found that in the case of SPB, the time taken for sanctioning loan was
much longer than the time taken by BOB. Therefore, it may be suggested that
SPB should take necessary steps to expedite the procedure, so that customers get
the loan sanctioned within reasonably short period.
3) In the case of 7 respondents the reason for the rejection of their loan application
was negative CIBIL report. Of course, this is one of the proper criteria to judge
the creditworthiness of an applicant. However, in some cases it so happened that a
cheque given by a customer had bounced back due to insufficient balance. If this
has happened only once, then it should not be taken as negative CIBIL report and
the bank should try to find out whether the respondent is really a defaulter or it is
just once in a time lapse on the part of the applicant.
4) Comparatively, smaller number of customers had selected SPB because of less
interest rate and speedy process of loan application. So, it may be recommended
that SPB should lower the rate of interest and try to have speedy process of loan
to attract more customers. Similarly, in the case of BOB only 33 out of 50
customers declared that they had selected BOB due to good behaviour of the staff.
This calls for better dealing with customers by the banking staff.
5) Very few customers used modern modes of loan repayment such as online
banking, mobile banking which are much more efficient than the other modes. It
is suggested that the banks should try to make the modern modes of payment
more popular among the customers.
6) In this survey, it was found that only 17 respondents were informed about the due
date of installment in advance. Therefore, it is suggested that both the banks
220
should take special care to see that the customers are informed about the due date
of installments well in advance, so that, they do not have to pay penalty in case of
late payment.
7) A majority of BOB customers said that their complaints were not attended to and
solved by BOB. Therefore, it is suggested that BOB staff should take proper steps
to solve the complaints made by the customers.
Similarly, majority of SPB customers felt that the bank should charge
lower interest rate. So, SPB should formulate a lending policy in which interest
rate is lower.
8) Only 30% of the BOB respondents had read the loan application form thoroughly
before signing it. In a majority of such cases, the reason for not reading the entire
application form was that it was filled up by an agent. Therefore, it is
recommended that the agent should make the respondents aware of all the details
given in the application form. Also, information provided should be short and in
vernacular.
9) SPB should make efforts to see that the customers make repayment of loan
through standing instructions which is one of the efficient modes of repayment.
10) From the analysis of collected data, it was found that BOB tends to sanction
higher amount of home loan on an average as compared to SPB. Therefore, it may
be recommended that SPB also increases the amount of home loan sanctioned to
its customers.
11) In the case of SPB customers, it was found that less than 50% of them utilize the
savings bank account service of the bank. So, it is suggested that SPB should try
to attract more customers taking home loan from the bank to open savings
accounts with the bank, so that repayment, etc. becomes simpler.
Apart from the above, the respondents themselves had given certain
suggestions as follows.
12) The BOB customers suggested that the bank manager should not force the
customers to take life insurance policy at the time of home loan disbursement.
Bank is advised not to mix life insurance business with housing finance.
221
13) It was also suggested that sanctioning and disbursement process should be timely
and transparent.
14) Moreover, the application form should be in vernacular, language.
15) One interesting suggestion made by one customer was that the “black part” of the
payment for the property to be purchased should be included to determine the
loan amount.
16) Some of the SPB customers suggested that they should not be forced to buy the
shares of the bank when they apply for the home loan.
222

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Chapter – 4

Data Analysis and Interpretation

4.1 Brief Profile of Surat

4.2 Data Analysis and Interpretations

Section- (A) Simple Tables

Section- (B) Two Way Tables

Section- (C) Association Between Various Characteristics

Data Analysis and Interpretation

4.1 Brief Profile of Surat

Table 4.1 Population Size for the Year 2011

Table 4.3 Total Home Loan Given by BOB

Time Period A/C Sanctioned A/C Disbursed

4.2 Data Analysis and Interpretations

Section- (A) Simple Tables

This section focuses on the personal information of the respondents.

(1) Age of the Respondents

Figure 4.2 Age of the Respondents

(2) Sex of the Respondents

(3) Educational Qualification of the Respondents

Table 4.6 Educational Qualifications of the Respondents

Figure 4.3 Educational Level of the Respondents

(4) Occupation of the Respondents

Total 100 100.0

Figure 4.4 Type of Occupation of the Respondents

(5) Income of the Respondents

Figure 4.5 Income Level of Respondents

(6) Type of Family of the Respondents

(7) Loan Taken in the Past

Figure 4.6 From which Bank, Loan is Taken in the Past

10.00 8.82 8.82

Table 4.10 Types of Loan taken in the Past

Home Loan 3 8.82

Figure 4.7 Types of loan taken in the past

Table 4.11 Sources of Information

Sources of Information Number of Respondents

It is evident from this table that as many as 83 respondents availed the

(11) Year in which the Loan was Taken

Table 4.12 Year in which the Loan was Taken

During 2010 76 76.0

Total 100 100.0

(12) Term of Loan

Figure 4.8 Term of Loan

Table 4.14 Amount of Loan Applied For

Figure 4.9 Amount of Loan Applied For

(14) Amount of Loan Sanctioned

Table 4.15 Amount of Loan Sanctioned

Figure 4.10 Amount of Loan Sanctioned

Section – (B) Two Way Tables

(15) Time Taken for Sanctioning Home Loan

Figure 4.11 Time taken for Sanctioning Home Loan

Table 4.17 Documents Demanded for Home Loan

(17) Property Insurance

(18) Reasons for Taking the Home Loan

Figure 4.12 Reasons for Taking Home Loan

(19) Types of Property

Table 4.19 Types of Property

Table 4.20 Areas (sq. ft.) of the New Flat

(21) Area (sq. ft.) of the New Bungalow

Table 4.21 Areas (sq. ft.) of the New Bungalow

Table 4.22 Areas (sq. ft.) of the New Row House

(23) Area (sq. ft.) of the Old Flat

(24) Area (sq. ft.) of the Old Bungalow

(25) Number of Respondents who were Account Holder of the Bank