Chapter 5

CHAPTER – V
PROBLEMS AND BENEFITS OF LIC HOUSING FINANCE

CUSTOMERS – AN ANALYSIS
House is the place which witnesses all the important events in the life
of a human being as such it is one of the basic needs of the society. It plays a
crucial role in the economic developments of a nation, both as an end and as
means. Housing problem in India came to the fore in the pre-independence
days and the intensity of the problem had gradually increased thereafter. This
situation gave rise for the emerging of LIC on 19th June 1989 and a public
issue was made in 1994. It started providing house loans at attractive rates of
interest and with other benefits.
This present chapter deals with various problems faced by the

customers of LIC housing finance in availing loans and their opinions to
overcome the problems faced by them are also highlighted. At the same time
this chapter also deals with the benefits received by the customers from the
LIC housing finance is also highlighted.
PROBLEMS FACED BY CUSTOMERS OF LIC HOUSING FINANCE
In this context, a parametric t-test has been applied on all the variables
of problems faced by the customers of LIC Housing finance and the following
results are obtained. The mechanism of the t-test indicates that the computed
mean is compared with the hypothesized mean value 3. The significant
positive and negative t-test values indicate the agreement and disagreement of
problems faced by the customers of LIC Housing Finance by the respondents.
The significant t-value can be taken to interpret the undecided opinion of the
respondent.
134
Table 5.1
One-Sample Statistics for Problems of customers in LIC Housing finance
Std. Std. Error

N Mean
Deviation Mean
Default interest 510 4.0667 .50892 .02190
Delay in loan sanctions 510 3.8241 .64219 .02764
Demand numerous documents 510 4.0204 .59181 .02547
Discrimination between salaried
and other group customers 510 3.8185 .73125 .03147
Exorbitant insurance deductions 510 3.6500 .75697 .03257

Pre closure charges 510 3.5222 .93849 .04039
From the above table, it is found that all the mean values are greater
than 3 in particular ranging from 3.52 to 4.06 with their respective standard
deviation less than 1.
Table 5.2
One-Sample Test for Problems of customers in LIC Housing finance
Test Value = 3
95% Confidence
Sig. Mean
t df Interval of the
(2-tailed) Difference
Difference
Lower Upper Lower Upper Lower Upper
Default interest 48.705 509 .000 1.06667 1.0236 1.1097
Delay in loan sanctions 29.820 509 .000 .82407 .7698 .8784
Demand numerous
40.066 509 .000 1.02037 .9703 1.0704
documents
Discrimination between
salaried and other group 26.011 509 .000 .81852 .7567 .8803
customers
Exorbitant insurance
19.954 509 .000 .65000 .5860 .7140
deductions
Pre closure charges 12.931 509 .000 .52222 .4429 .6016
135
From the table it is found that t-test values 48.705, 40.066, 29.820,
26.011, 19.954 and 12.931 are significantly greater than the test value 3 at 5
percent level of significance. Therefore it is concluded from the above table
that the customers of LIC housing finance strongly agreed to face major
problems at the time of availing housing loans in LIC concerned to default
interest and demand of numerous documents. But the customers moderately
agreed to face problems such as discrimination between salaried and other
group of customers, delay in loan sanction, exorbitant insurance deduction
and pre-closure charges.
CLASSIFICATION OF PROBLEMS FACED BY THE CUSTOMERS

OF LIC HOUSING LOAN
In this section the problems faced by the customers at the time of

availing LIC housing loans in Chennai are identified through k-means cluster
analysis. It classifies the sample units into heterogeneous groups and their
nature of heterogeneity is anatomically analyzed. The total average scores of
the six variables of problems met by the customer classify the sample unit in
the following way.
Table 5.3
Final Cluster Centers
Cluster
1 2 3
Default interest -.13940 M) -.49934 (W) .84939(S)
Delay in loan sanctions 1.59722 (S) -.35130(W) -.18953(M)
Demand numerous documents .38433 (S) -.02585(W) -.13782(M)
salaried and other group .22258(M) -.52211(W) .71711(S)
customers
Exorbitant insurance deductions .01575(M) -.04507(W) .06351(S)
Pre closure charges -.79671(W) .07853(M) .24649(S)
136
Table 5.4
Number of Cases in each Cluster
Detached Customer 78.000 15.29

Cluster Optimistic Customers 264.000 51.76
Improvement Seekers 168.000 32.95
Valid 510.000 100.0
Missing .000
The first cluster comprises of 78 (15.29%) of the customers expressed

to face more problems during pre-closure but they accept to meet moderate
problems in LIC housing concerned to default interest, Discrimination
between salaried and other group customers, Exorbitant insurance deductions
at the time of availing housing loan. Concerned to loan sanction and
demanding of numerous documents, the customers expressed to face only
minimum problems. Therefore this cluster of customers is called “Detached
Customers”.
The second cluster comprises of 264 (51.76%) customers expressed to

face more problems concerned to default interest, delay in loan sanction,
demanding numerous documents, discrimination between salaried and other
groups of customers, exorbitant insurance deduction and moderate problems
at the time of pre-closing the loans. Therefore this cluster of customers is
called “Optimistic Customers”.
The third cluster consists of 168 (32.952%) expressed to incur

moderate problems concerned to delay in loan sanction, demanding numerous
documents at the time of availing LIC housing loans and they accept to face
only a minimum problems concerned to default interest, Discrimination
between salaried and other group customers, Exorbitant insurance deductions
137
and Pre closure charges. Therefore this cluster of customers is called
“Improvement Seekers”.
ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

LOAN SANCTIONAND THEIR LIC HOUSING FINANCE DETAILS
The variables of problems of the customers in loan sanction in LIC

housing finance are considered as the basis to classify the customers into
heterogeneous groups. Therefore it is essential to establish the associations
between the clusters of problems of the customers and their LIC housing
finance details.

LOAN SANCTION AND THE AGE OF THE CUSTOMERS
The association between the clusters of problems incurred by the

customers of LIC housing finance and the age of the customers is verified in
the following table.
Table 5.5
Crosstab for Age of the customers
Age
25 to 35 36 to 45 46 to 55 Total
years years years
Count 21 43 14 78
Detached
Customer
Customers 26.9% 55.1% 17.9% 100.0%
Problems
Count 55 111 98 264
Customer Optimistic
Customer
Problems Customers 20.8% 42.0% 37.1% 100.0%
Problems
Count 56 66 46 168
Improvement
Customer
Seekers 33.3% 39.3% 27.4% 100.0%
Problems
Count 132 220 158 510
Total Customer
Problems 25.9% 43.1% 31.0% 100.0%
138
From the above table, it is found that 55.1% of detached customers in
the age group 36 to 45 years expressed to have more problems at the time of
LIC housing loan sanctions, 20.8% of optimistic customers in the age group
25 to 35 years expressed to have similar problems compared to other age
group of customers and 27.4% of improvement seekers customers in the age
group 46 to 55 years expressed to have similar problems at the time of loan
sanction from LIC housing finance. This leads to the computation of chi-
square statistics as stated in the table below.
Table 5.6
Chi-Square Tests for Age of the customers of LIC housing finance
Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 17.679(a) 4 .001
Likelihood Ratio 17.975 4 .001
Linear-by-Linear Association .441 1 .507
N of Valid Cases 510
a 0 cells (.0%) have expected count less than 5. The minimum expected count
is 20.19.
From the above table, it is found that Pearson chi-square statistics

=0.001, p = .001 are statistically significant at 5% level. It can be concluded
that there is a deep association between the problems of the customers in LIC
housing finance and their age. As LIC sanctions loans by calculating the age
of the customers and their repayment capacity.

LOAN SANCTION AND THE EDUCATIONAL QUALIFICATION OF
THE CUSTOMERS

customers of LIC housing finance and the educational qualification of the
customers is verified in the following table.
139
Table 5.7
Crosstab – Educational Qualification
Educational Qualification
Total
HSC UG PG Professional Others
Count % within 15 22 26 5 10 78
Detached
Customer
Customers 19.2% 28.2% 33.3% 6.4% 12.8% 100.0%
Problems
Count % within 56 66 76 43 23 264
Customers Optimistic
Customer
Problems Customers 21.2% 25.0% 28.8% 16.3% 8.7% 100.0%
Problems
Count % within 21 58 53 28 8 168
Improvement
Customer
Seekers 12.5% 34.5% 31.5% 16.7% 4.8% 100.0%
Problems
Count % within 92 146 155 76 41 510
Total Customer
18.0% 28.6% 30.4% 14.9% 8.0% 100.0%
Problems
From the above table, it is found that 33.3% of detached customers

with PG qualification and 12.8% of the customers in the same group with
other qualification expressed to face more problems at the time of availing
LIC housing finance. 21.2% of optimistic customers with HSC qualification
also expressed to incur similar problems and 34.5% of improvement seekers
customers with UG qualification and 16.7% of professionals in the same
group also accepted to have similar problem compared to other age group of
customers. This leads to the computation of chi-square statistics as stated in
the table below.
Table 5.8
Chi-Square Tests – Educational Qualification

is 6.27.
140
=0.028, p = .018 are statistically significant at 5% level. Therefore it can be
concluded that there is a deep association between the problems of customers
in LIC housing finance and their educational qualification. Thus, educational
qualification of the customers explains his loan repayable capacity.

LOAN SANCTION AND THE OCCUPATION OF THE CUSTOMERS

customers of LIC housing finance and their occupation is verified in the
following table:
Table 5.9
Crosstab – Occupation of the customers
Occupation Total
Salaried Business
Count % within 61 17 78
Detached
Customer
Customers 78.2% 21.8% 100.0%
Problems
Customer Optimistic
Customer
Problems Customers 82.6% 17.4% 100.0%
Problems
Improvement
Customer
Seekers 67.3% 32.7% 100.0%
Problems
Customer
Total Problems 76.9% 23.1% 100.0%
From the above table, it is found that 78.2% detached customers of

salaried groups, 82.6% of optimistic customers and 67.3% of improvement
seekers of the same group expressed to have incurred problems in LIC
141
housing finance compared to business group customers of LIC housing
finance. This leads to the computation of chi-square statistics as stated in the
table below.
Table 5.10
Chi-Square Tests –Occupation of the customers

Linear-by-Linear Association 7.195 1 .007
is 18.05.

concluded that there is a deep association between the problems of the
customers in LIC housing finance and their occupation. Therefore the
occupation of the customers of LIC highlights the customers’ strength in the
society.

LOAN SANCTION AND MONTHLY INCOME OF THE
CUSTOMERS

customers of LIC housing finance and the monthly income of the customers is
verified in the following table.
142
Table 5.11
Crosstab – Monthly income
Monthly income
Below Rs.20001- Rs.30001– Above Total
Rs.20000 Rs.30000 Rs.40000 Rs.40000
Count % 34 12 23 9 78
Detached within
Customers Customer 43.6% 15.4% 29.5% 11.5% 100.0%
Problems
Count % 67 67 95 35 264
Customer Optimistic within
Problems Customers Customer 25.4% 25.4% 36.0% 13.3% 100.0%
Problems
Count % 57 45 51 15 168
Improvement within
Seekers Customer 33.9% 26.8% 30.4% 8.9% 100.0%
Problems
Count % 158 124 169 59 510
within
Total
Customer 31.0% 24.3% 33.1% 11.6% 100.0%
Problems

earning an income below Rs.20,000 and 11.5% of customers in the same
group earning a income above Rs.40,000 in the same group expressed to have
incurred problems in LIC housing finance. 36% of Optimistic customers
earning a monthly income Rs.20,001 to Rs.40,000 faced problems in LIC
housing fiancé during their loans sanction compared to other income groups.
26.8% of improvement seekers earning an income of Rs.20,001 to Rs.30,000
also expressed to have faced similar problem compared to other customers in
the same group. This leads to the computation of chi-square statistics as stated
in the table below.
143
Table 5.12
Chi-Square Tests - Monthly income

is 9.02.

concluded that there is a deep association between the variables of problems
the customers incurred in LIC housing finance and the monthly income
earned by the customer. Thus the income earned by the customers explains
his financial position and repayment capability of the loan availed in LIC
housing finance.

LOAN SANCTION AND NUMBER OF YEARS DEALING WITH LIC
HOUSING FINANCE

customers of LIC housing finance and number of years dealing with LIC
housing finance is verified in the following table.
144
Table 5.13
Crosstab –Number of years dealing with LIC
No. of years dealing with LIC

< 5-10 10-15 15-20 20 years Total
5years years years years and above
Count 29 23 14 7 5
Detached
Customers % within Customer
37.2% 29.5% 17.9% 9.0% 6.4% 100.0%
Problems
Count 107 67 35 41 14 264
Customer Optimistic
Problems Customers % within Customer
40.5% 25.4% 13.3% 15.5% 5.3% 100.0%
Problems
Count 56 50 31 7 24 168
Improvement
Seekers % within Customer
33.3% 29.8% 18.5% 4.2% 14.3% 100.0%
Problems
Count 192 140 80 55 43 510
Total % within Customer
37.6% 27.5% 15.7% 10.8% 8.4% 100.0%
Problems

dealing less than five years with LIC housing finance expressed problems at
the time of borrowing housing loan in LIC and 6.4% of the customers in the
same group dealing with LIC more than 20 years also accepted to face similar
problems. It is further found that 25.4% of optimistic customer dealing 5 to 10
years with LIC also accepted to have incurred problems at the time of availing
LIC housing finance when compared to other customers dealing with different
years. 18.5% of improvement seekers dealing 10 to 15 years with LIC and
4.2% dealing with 15 to 20 years also experienced similar problems. This
leads to the computation of chi-square statistics as stated in the table below.
145
Table 5.14
Chi-Square Tests - Number of years dealing with LIC

is 6.58.

concluded that there is a deep association between the variables influencing
the customers of LIC housing loan and number of years dealing with LIC.
This shows that the customer has more confident on LIC housing finance.

LOAN SANCTION AND AMOUNT OF HOUSING LOAN
BORROWED WITH LIC HOUSING FINANCE

customers of LIC housing finance and amount number of years dealing with
LIC housing finance is verified in the following table.
146
Table 5.15
Crosstab – Amount of housing loan borrowed
Amount of housing loan borrowed

Above Total
<5 5-8 8-11 11-14
14
lakhs lakhs lakhs lakhs
lakhs
Count 9 43 21 4 1 78
Detached % within
Customers Customer 11.5% 55.1% 26.9% 5.1% 1.3% 100.0%
Problems
Count 34 93 63 56 18 264
Customer Optimistic % within
Problems Customers Customer 12.9% 35.2% 23.9% 21.2% 6.8% 100.0%
Problems
Count 33 72 17 28 18 168
Improvement % within
Seekers Customer 19.6% 42.9% 10.1% 16.7% 10.7% 100.0%
Problems
Count 76 208 101 88 37 510
Total % within
Customer 14.9% 40.8% 19.8% 17.3% 7.3% 100.0%
Problems

borrowed loan amount of Rs.5 lakhs to 8 lakhs and 1.3% of the customers
borrowed above 14 lakhs in the same group faced more problems during the
LIC housing loan sanction. It is further found that 23.9% of the optimistic
customers borrowed Rs.8 lakhs to Rs.11 lakhs and 129% of the customers in
the same group borrowed less than Rs.5 lakhs also expressed similar problem.
It is further found that 16.7% of t he improvement seekers customers
borrowed loan of Rs.11 lakhs to Rs.14 lakhs and 10.1% of the customers in
the same group borrowed loan of Rs. 8 lakhs to Rs. 11 lakhs also expressed
similar problems. This leads to the computation of chi-square statistics as
stated in the table below.
147
Table 5.16
Chi-Square Tests - Amount of housing loan borrowed

is 5.66.

customer in LIC housing finance and amount of housing loan borrowed by the
customers.

LOAN SANCTION AND PROCESS FEES PAID FOR THE LOAN
AMOUNT

customers of LIC housing finance and processing fees paid is verified in the
following table.
148
Table 5.17
Crosstab – Processing fees
Processing fees
Rs.1000- Rs.2001- Above Total
Rs.2000 Rs.3000 Rs.3000
Count 14 35 29 78
Detached % within
Customers Customer 17.9% 44.9% 37.2% 100.0%
Problems
Count 82 32 150 264
Problems Customers Customer 31.1% 12.1% 56.8% 100.0%
Problems
Count 46 60 62 168
Improveme % within
nt Seekers Customer 27.4% 35.7% 36.9% 100.0%
Problems
Count 142 127 241 510
Total % within
Customer 27.8% 24.9% 47.3% 100.0%
Problems

paid processing fees Rs.2,001 to Rs.3,000, 31.1% of optimistic customers
paid processing fees from Rs.1,000 to Rs.2,000 and 36.9% of improvement
seekers paid Above Rs.3,000 towards processing fees. This leads to the
computation of chi-square statistics as stated in the table below:
149
Table 5.18
Chi-Square Tests – Processing fees

is 19.42.

concluded that there is a deep association between problems of customers
towards LIC housing loan and processing fees paid at the time of availing
loans from LIC housing finance. The customers at the time of availing loans
are required to pay the processing fee which is fixed based on the loan
amount.

LOAN SANCTION AND PERIOD OF REPAYMENT OF THE LOAN
AMOUNT

customers of LIC housing finance and period of repayment of the loan
amount is verified in the following table.
150
Table 5.19
Crosstab – Period of repayment of the loan amount
Offers preferred
<5 5-10 10-15 15 years Total
years years years and above
Count 36 18 20 4 78
Detached % within
Problems
Count 105 71 75 13 264
Problems
Count 54 39 45 30 168
Problems
Count 195 128 140 47 510
Total % within
Customer 38.2% 25.1% 27.5% 9.2% 100.0%
Problems

having < than 5 years repayment period and 5.1% of the customers of the
same group having 15 years repayment period expressed to have faced more
problems at the time of availing LIC housing loans. Further it is found that
26.9% of the optimistic customers having 5to 10 years repayment period and
26.8% of the improvement seekers having 10 to 15 years repayment period
expressed to have face similar problems compared to other customers holding
different repayment periods. This leads to the computation of chi-square
statistics as stated in the table below:
151
Table 5.20
Chi-Square Tests - Offer preferred

is 7.19.

customers towards LIC housing finance and repayment period of the loan
borrowed from LIC. The repayment period of the loan amount borrowed by
the customers is decided by the LIC housing finance majorly on the age and
income factors.
ASSOCIATION BETWEEN PROBLEMS INCURRED BY THE

CUSTOMERS IN LOAN SANCTION AND AMOUNT OF EMI

customers of LIC housing finance and amount of EMI paid is verified in the
following table.
152
Table 5.21
Crosstab – Amount of EMI
Amount of EMI
Rs.10001 Rs.15001 Total
Rs.5000- Above
to to
Rs.10000 Rs.20000
Rs.15000 Rs.20000
Count 26 14 32 6 78
Detached % within
Problems
Count 59 52 129 24 264
Problems
Count 38 33 67 30 168
Problems
Count 123 99 228 60 510
Total % within
Customer 24.1% 19.4% 44.7% 11.8% 100.0%
Problems
From the above table, it is found that 41% of detached customers

paying EMI of Rs.15,001 to Rs.20,000 and 7.7% of the customers paying
EMI above Rs.20000 in the same group faced problems at the time of availing
loans from LIC, 19.7% of the optimistic customers paying EMI of Rs.10,001
to Rs.15,000 and 22.6% of the customers paying EMI of Rs.5,000 to
Rs.10,000 also expressed to face similar problems. This leads to the
computation of chi-square statistics as stated in the table below:
153
Table 5.22
Chi-Square Tests - Amount of EMI

is 9.18.

concluded that there is a deep association between the variables influencing
customers toward LIC housing loan and Amount of EMI. The amount of EMI
paid by the customers of LICs Housing loan based on their monthly income.
BENEFITS OF THE CUSTOMERS IN LIC HOUSING FINANCE
The application of parametric t-test on all the variables of benefits

received by the customers of LIC Housing finance and the following results
are obtained. The mechanism of the t-test indicates that the computed mean is
compared with the hypothesized mean value 3. The significant values indicate
the agreement and disagreement of benefits received by the customers of LIC
Housing Finance. The significant t-value can be taken to interpret the
undecided opinion of the respondent.
154
Table 5.23
One-Sample Statistics for Benefit for the customers
Std. Std. Error

N Mean
Deviation Mean
Sanctioning of huge loan amount 510 3.3167 .82048 .03531
Direct and indirect tax benefits 510 3.5315 .72392 .03115
Loan top-up and take over 510 3.4333 .83810 .03607
Flexible repayment benefits 510 3.3574 .83302 .03585
Insurance coverage for loans 510 3.1370 .87626 .03771
Minimum initial payments 510 3.4093 .71110 .03060
From the above table, it is found that all the mean values are greater
than 3 in particular ranging from 3.31 to 3.53 with their respective standard
deviation less than 1.
Table 5.24
One-Sample Test for Performance, Appraisal, Salary, Rewards and

Recognition
Test Value = 3
95% Confidence
Sig. Mean
t df Interval of the
(2-tailed) Difference
Difference
Lower Upper Lower Upper Lower Upper
Sanctioning of
8.969 509 .000 .31667 .2473 .3860
huge loan amount
Direct and indirect
17.061 509 .000 .53148 .4703 .5927
tax benefits
Loan top-up and
12.015 509 .000 .43333 .3625 .5042
take over
Flexible repayment
9.970 .000 .35741 .2870 .4278
benefits 509
Insurance coverage
3.634 .000 .13704 .0630 .2111
for loans 509
Minimum initial
13.374 .000 .40926 .3491 .4694
payments 509
155
From the table it is found that t-test values 17.061, 13.374, 12.015,
9.970, 8.969 and 3.634 are significantly greater than the test value 3 at 5
percent level of significance. It is concluded that the customers moderately
agreed for availing the benefits of direct and indirect tax benefits, loan top-up,
take over and minimum initial payment. It is further found that they are
moderately satisfied in availing the benefits provided by LIC to the customers
such as sanctioning huge loan amount, flexible repayment benefit and
insurance coverage for loans.
CLASSIFICATION OF BENEFITS RECEIVED BY THE

CUSTOMERS OF LIC HOUSING FINANCE
In this section the benefits received by the customers by availing

housing loans from LIC are identified through k-means cluster analysis. It
classifies the sample units into heterogeneous groups and their nature of
heterogeneity is anatomically analyzed. The total average scores of the six
variables of benefits received by the customer classify the sample unit in the
following way.
Table 5.25
Final Cluster
Cluster
1 2 3
Sanctioning of huge loan amount .36130 (S) -.37827 (W) -.05707(M)
Direct and indirect tax benefits -.37047(W) .61700(S) -.27222(M)
Loan top-up and take over .48063(S) -.62688(W) .10259(M)
Flexible repayment benefits -.56356 (W) -.20657(M) 1.23896(S)
Insurance coverage for loans .12891(M) -.29029(W) .20385(S)
Minimum initial payments .16207(S) .12702(M) -.45392(W)
156
Table 5.26
Number of Cases in each Cluster
Highly benefited customers 207.000 40.59%

Cluster Benefit seekers 179.000 35.09%
Moderately benefited customers 124.000 24.32%
Valid 510.000 100.0%
Missing .000
The first cluster comprises of 207 (40.59%) customers strongly agreed

that they have received more benefits such as sanctioning of huge loan
amount, loan top-up and take over and paying minimum initial payments.
Therefore this cluster of customers is called “Highly Benefited Customers”.
The second cluster comprises of 179 (35.09%) customers moderately

agreed for receiving benefits from LIC housing finance such as flexible
repayable benefits and payment of minimum initial payments. Therefore this
cluster of customers is called “Benefit Seekers”.
The third cluster consists of 124 (24.32%) customers have agreed for
receiving only moderate benefits sanctioned by the LIC housing finance such
as sanctioning of huge loan amount, direct and indirect tax benefits loan top
ups Therefore this cluster of customers is called “Moderately Benefited
Customers” .
ASSOCIATION BETWEEN BENEFITS OF THE CUSTOMERS IN

AVAILING LOAN IN LIC HOUSING FINANCE
The variables of benefits to customers from LIC housing finance are

considered as the basis to classify the customers into heterogeneous groups.
Therefore it is essential to establish the associations between the clusters of
157
benefits to the customers of LIC housing finance and the demographic
variables.

LOAN SANCTION AND THE AGE OF THE CUSTOMERS
The association between the clusters of benefits to the customers of

LIC housing finance and the age of the customers is verified in the following
table.
Table 5.27
Crosstab for Age of the customers
Age
25 to 35 36 to 45 46 to 55 Total
years years years
Highly Count 49 75 83 207

Benefited % within
Customers 23.7% 36.2% 40.1% 100.0%
Benefits
Count 49 88 42 179
Customer Benefit
Benefits Seekers % within
27.4% 49.2% 23.5% 100.0%
Benefits
Moderately Count 34 57 33 124

Benefited % within
Customers Benefits 27.4% 46.0% 26.6% 100.0%
Count 132 220 158 510

Total % within
25.9% 43.1% 31.0% 100.0%
Benefits
From the above table, it is found that 40.1% of highly benefited

customers in the age group 46 years to 55 years accept to have benefited more
in LIC housing finance when compared on other age groups in the same
158
group. 49.2% of the benefit seekers in the age group 36 to 45 years and 27.4%
of moderately benefited customers in the age group 25 to 35 years accept and
to have benefited in LIC housing finance compared to other age group in the
same groups. This leads to the computation of chi-square statistics as stated in
the table below.
Table 5.28
Chi-Square Tests –age of the customers

is 32.09.

concluded that there is a deep association between the benefits of the
customers and their age. Generally the customers in lesser age group avail the
benefit of huge loan amount sanction from the LIC housing finance.

LOAN SANCTION AND THEIR EDUCATIONAL QUALIFICATION
The association between the clusters of benefits to the customers from

LIC housing finance and their educational qualification is verified in the
following table.
159
Table 5.29
Crosstab – Educational qualification
Educational qualification
Total
HSC UG PG Professional Others
Count 35 53 77 25 17 207
Highly
Benefited % within
Benefits
Count 39 63 45 22 10 179
Customer Benefit % within
Benefits Seekers Customer 21.8% 35.2% 25.1% 12.3% 5.6% 100.0%
Benefits
Count 18 30 33 29 14 124
Moderately
Benefited % within
Benefits
Count 92 146 155 76 41 510
Total % within
Customer 18.0% 28.6% 30.4% 14.9% 8.0% 100.0%
Benefits

customers having PG qualification and 8.2% of the customers with other
qualification in the same group have more benefited in LIC housing finance.
35.2% of benefit seekers having UG qualification and 21.8% of the customers
with HSC qualification in the same group have also benefited in LIC hosing
finance. It is further found that 23.4% of the moderately benefited customers
with professional qualification expressed similar opinion. This leads to the
computation of chi-square statistics as stated in the table below.
160
Table 5.30
Chi-Square Tests – Educational qualification

is 9.97.

concluded that there is a deep association between the benefits of customers
in LIC housing finance and their educational qualification. It is analyzed that
customers with higher educational qualification are sanctioned housing loans
without delays.

LOAN SANCTION AND MONTHLY INCOME OF THE
CUSTOMERS
The association between the clusters of benefits to the customers and

the monthly income of the customers is verified in the following table.
161
Table 5.31
Crosstab – Monthly income
Monthly income
Below Rs.20001- Rs.30001 – Above Total
Rs.20000 Rs.30000 Rs.40000 Rs.40000
Count 81 46 65 15 207
Highly
Benefited % within
Benefits
Count 36 55 61 27 179
Benefits Seekers Customer 20.1% 30.7% 34.1% 15.1% 100.0%
Benefits
Count 41 23 43 17 124
Moderately
Benefited % within
Benefits
Count 158 124 169 59 510
Total % within
Customer 31.0% 24.3% 33.1% 11.6% 100.0%
Benefits
It is found that 39.1% of highly benefited customers earning an

income below Rs.20,000 and 7.2% of customers in the same group earning a
income above Rs.40,000 in the same group accept to have benefited from LIC
housing loan. 34.1% of benefit seekers earning a monthly income Rs.30,001
to Rs.40,000 accept to have been benefited in LIC housing fiancé compared to
other income groups. 18.5% of moderately benefited customers earning a
monthly income of Rs.20,001 to Rs.30,000 accept to have been benefited in
LIC housing finance compared to other income group of customers in the
same group. This leads to the computation of chi-square statistics as stated in
the table below.
162
Table 5.32
Chi-Square Tests – Monthly income

is 14.35.

concluded that there is a deep association between benefited customers and
the monthly income earning of the customers. It is concluded that the
customers of housing loan are benefited by availing loans from LIC as they
are given the benefit of insurance coverage on their loan amount.
ASSOCIATION BETWEEN BENEFITS OF CUSTOMERS IN LOAN

SANCTION AND NUMBER OF YEARS DEALING WITH LIC
HOUSING FINANCE
The association between the clusters benefits to the customers of LIC

housing finance and number of years dealing with LIC housing finance is
verified in the following table.
163
Table 5.33
Crosstab – Number of years dealing
Number of years dealing

20
< 5-10 10-15 15-20 years Total
5years years years years and
above
Count 70 55 22 36 24 207
Highly
Benefited % within
Benefits
Count 65 59 36 13 6 179
Benefits
Count 57 26 22 6 13 124
Moderately
Benefited % within
Benefits
Count 192 140 80 55 43 510
Total % within
Customer 37.6% 27.5% 15.7% 10.8% 8.4% 100.0%
Benefits

customers dealing less than five years and 11.6% of the customers in the same
group dealing 20years and above accept to benefit from LIC housing finance.
33% of benefit seekers dealing 5 to 10 years and 20.1% of the customers
dealing 10 to 15 years in the same group accept to receive benefits on availing
loans from LIC housing finance. It is further found that 4.8% of the
moderately benefited customers dealing with 15 to 20 years availed benefits
on borrowing of loans from LIC housing finance. This leads to the
computation of chi-square statistics as stated in the table below.
164
Table 5.34
Chi-Square Tests - Number of years dealing

is 10.45.

concluded that there is a deep association between benefits to the customers in
availing loans and number of years dealing with LIC housing finance. This
implies that the LIC housing grants more benefits that retains the customers
from switch over to other finance companies.

LOAN SANCTION AND AMOUNT OF HOUSING LOAN
BORROWED WITH LIC HOUSING FINANCE
The association between the clusters of benefits to the customers in

loan sanction by LIC housing finance and amount of loan borrowed is verified
in the following table.
165
Table 5.35
Crosstab – Amount of loan borrowed
Amount of loan borrowed

<5 5-8 8-11 11-14 Above 14 Total
lakhs lakhs lakhs lakhs lakhs
Count 37 66 42 50 12 207
Highly
Benefited % within
Benefits
Count 22 94 40 8 15 179
Benefits
Count 17 48 19 30 10 124
Moderately
Benefited % within
Benefits
Count 76 208 101 88 37 510
Total % within
Customer 14.9% 40.8% 19.8% 17.3% 7.3% 100.0%
Benefits

customers borrowing loan amount of Rs.5 lakhs to 8 lakhs and 5.8% of the
customers borrowing above Rs.14 lakhs in the same group accept to have
been benefited from LIC housing finance. It is further found that 22.3% of the
benefit seekers borrowed Rs.8 lakhs to Rs.11 lakhs and 12.3% of the
customers in the same group borrowed less than Rs.5 lakhs accept to have
benefited in availing loans from LIC housing finance. It is further found that
24.2% of moderately benefited customers borrowing loan of Rs.11 lakhs to
Rs.14 lakhs accept to have benefited from LIC housing finance. This leads to
the computation of chi-square statistics as stated in the table below.
166
Table 5.36
Chi-Square Tests - Amount of loan borrowed

is 9.00.

concluded that there is a deep association between benefits received by the
customers of LIC housing finance and amount of loan borrowed from LIC.
The above tables further reveals that the customers are benefited by the
availing loans from LIC as it gives them a further benefit of loan top-up and
take over.
ASSOCIATION BETWEEN BENEFIT OF THE CUSTOMERS IN

LOAN SANCTION AND PERIOD OF REPAYMENT OF THE LOAN
AMOUNT
The association between the clusters of benefit of the customers in loan

sanction and period of repayment of the loan amount is verified in the
following table.
167
Table 5.37
Crosstab – Period of repayment
Period of repayment
15 years Total
<5 5-10 10-15
and
years years years
above
Count 88 43 53 23 207
Highly
Benefited % within
Benefits
Count 56 63 52 8 179
Benefits Seekers Customer 31.3% 35.2% 29.1% 4.5% 100.0%
Benefits
Count 51 22 35 16 124
Moderately
Benefited % within
Benefits
Count 195 128 140 47 510
Total % within
Customer 38.2% 25.1% 27.5% 9.2% 100.0%
Benefits

customers with < than 5 years repayment period and 11.1% of the customers
of the same group having 15 years repayment period accept to have received
benefit from availing loans in LIC housing finance. 35.2% of benefit seekers
having 5 to 10 years repayment period and 29.1% of the customers from the
same group having 10 to 15 years repayment period are benefited from
availing loans in LIC housing fiancé compared to other customers having
different repayment periods. It is further found that 28.2% of moderately
benefited customers also accept to have benefited from the LIC housing
finance compared to other customers with different repayment periods. This
leads to the computation of chi-square statistics as stated in the table below.
168
Table 5.38
Chi-Square Tests – Period of repayment

is 11.43.

concluded that there is a deep association between the benefits to the
customers and period of repayment. This shows that the LIC housing finance,
in order to retain the existing customers give the benefit the flexibility in
repayment of loan amount which is based on the income earned by the
customers.
INFLUENCE OF PROBLEMS ON BENEFITS OF CUSTOMERS IN

LIC HOUSING FINANCE
The subsequent application of six dependent variables concerned to

problems experienced by the customers of LIC at the time of availing loans
namely default interest, dealing in loan sanction, demand numerous
documents, discrimination between salaried groups and other groups of
customers, exorbitant insurance deduction and pre-closure charges on the six
independent variables of benefits received by customers at the time of
availing loans from LIC housing finance namely sanctioning of huge loan
amount, direct and indirect tax benefits, loan top-up and take over, flexible
repayment benefits, insurance coverage for loans, minimum initial payment.
The cumulative influence of these six factors of problems on the benefits of
customers in LIC housing finance is examined through regression analysis in
the following section.
169
INFLUENCE OF PROBLEMS ON SANCTIONING OF HUGE LOAN
AMOUNT IN LIC HOUSING FINANCE
The influence of six factors of problems on sanctioning of huge loan

amount by LIC housing fiancé is measured through regression analysis and
the results are presented below.
Table 5.39
Model Summary – problems on sanctioning of huge loans
R Adjusted R Std. Error of the

Model R
Square Square Estimate
1 .707(a) .500 .494 .51522
a Predictors: (Constant), default interest, dealing in loan sanction, demand
numerous documents, discrimination between salaried groups and other
groups of customers, exorbitant insurance deduction and pre-closure charges
From the above table, it is clearly revealed that R=0.707, R-square

=0.500, and adjusted R-square is equal to 0.494. This implies that the
variables of problems explain the sanctioning of huge loan to the customers of
LIC at 50 % level. The goodness of regression fit is presented in the following
table.
Table 5.40
ANOVA - problems on sanctioning of huge loans
Sum of
Model df Mean Square F Sig.
Squares
Regression 133.566 6 22.261 83.860 .000(a)
1 Residual 133.524 503 .265
Total 267.089 509
b Dependent Variable: Sanctioning of huge loan amount
170
From the above table it is found that the F-value = 83.860, p=0.000 are
statistically significant at 5% level. Therefore it is inferred that the problems
experienced by the customers at the time of availing LIC housing loans and
sanctioning of huge loan amount variable are significantly related and they
have the good explanatory powers.
Table 5.41
Coefficients-Problems on sanctioning of huge loans
Unstandardized Standardized
t Sig.
Coefficients Coefficients
Model
Std. Std.
B Beta B
Error Error
(Constant) 3.922 .023 171.911 .000
Default interest .407 .023 .562 17.839 .000
Delay in loan
.180 .023 .248 7.873 .000
sanction
Demand
numerous -.085 .023 -.117 -3.720 .000
documents
1 Discrimination
between salaried
.149 .023 .206 6.527 .000
and other groups
of customers
Exorbitant
insurance .121 .023 .167 5.293 .000
deduction
Pre-closure
.142 .023 .196 6.206 .000
charges
a Dependent Variable: sanction of huge loans
From the above table it is found that default interest (t=17.839,

p=0.000), delay in loan sanction (t=7.873, p=0.000), Demand numerous
documents (t=-3.873, p=0.000), Discrimination between salaried and other
group of customers (t=6.527, p=0.000), exorbitant insurance (t=5.293,
p=0.000) and Pre-closure charges (t=6.206, p=0.000) are statistically
171
significant at 5 per cent level. This implies that the problems of experienced
by the customers of LIC are highly significant at the time of sanctioning of
huge loan amount. It is concluded that the LIC housing finance at the time of
sanctioning loans discriminate the customers between salaried and other
group of customer, demand more documents and deduct exorbitant insurance
failing which they delay in loan sanctions. It is further found that any default
in payments by the customers of LIC housing finance are charge with default
interest and pre closure charges at the time of sanctioning huge loan amount.
INFLUENCE OF PROBLEMS ON DIRECT AND INDIRECT TAX

BENEFITS IN LIC HOUSING FINANCE
The influence of six factors of problems on direct and indirect tax

benefits by LIC housing finance is measured through regression analysis and
Table 5.42
Model Summary – Problems on direct and indirect tax benefits

Model R
1 .458(a) .210 .200 .50460

variables of problems explain the direct and indirect tax benefits at 21% level.
The goodness of regression fit is presented in the following table.
172
Table 5.43
ANOVA - Problems on direct and indirect tax benefits
Sum of Mean
Model df F Sig.
Squares Square
Regression 34.005 6 5.668 22.259 .000(a)
1 Residual 128.073 503 .255
Total 162.078 509
b Dependent Variable: direct and indirect tax benefits
From the above table it is found that the F-value = 22.539, p=0.000 are
direct and indirect tax benefits are significantly related and they have the good
explanatory powers.
Table 5.44
Coefficients-Problems on direct and indirect tax benefits
t Sig.
Model
Std.
B Std. Error Beta B
Error
(Constant) 4.433 .022 198.384 .000
Delay in loan
.119 .022 .211 5.321 .000
sanction
Demand numerous
-.007 .022 -.012 -.311 .756
documents
1 Discrimination
between salaried
.070 .022 .125 3.149 .002
and other groups of
customers
Exorbitant
.048 .022 .085 2.156 .032
insurance deduction
Pre-closure charges .128 .022 .226 5.712 .000
a Dependent Variable: Networking clarity
173
p=0.000), delay in loan sanction (t=5.321, p=0.000), discrimination between
salaried and other groups of customers (t=3.149, p=0.002), exorbitant
insurance deduction (t=2.156, p=0.032) and pre closure charges (t=5.712,
p=.000) are statistically significant at 5 percent level. The regression analysis
concludes that the problems of LIC housing finance are highly significant
towards direct and indirect tax benefits. It is concluded that the LIC housing
finance avail direct and indirect tax benefits in spite of the problems faced by
them during the sanction of housing loans.
INFLUENCE OF PROBLEMS ON LOAN TOP-UP AND TAKEOVER

OF LOAN AMOUNT IN LIC HOUSING FINANCE
The influence of six factors of problems on loan top-up and takeover of

loan amount by LIC housing fiancé is measured through regression analysis
and the results are presented below.
Table 5.45
Model Summary –Loan Top-Up and take over
Mode R Std. Error of the

R Adjusted R Square
l Square Estimate
1 .497(a) .247 .238 .65793

variables of problems explain the loan top-up and take over of the customers
in LIC housing finance at 24.5% level. The goodness of regression fit is
presented in the following table.
174
Table 5.46
ANOVA- Loan Top-Up and take over
Sum of Mean
Model df F Sig.
Squares Square
Regression 71.536 6 11.923 27.543 .000(a)
1 Residual 217.737 503 .433
Total 289.273 509
b Dependent Variable: Loan top up and take over.
From the above table it is found that the F-value = 27.543, p = 0.000
are statistically significant at 5% level. Therefore it is inferred that the
problems of the customers in LIC housing loans and benefits of the customers
such as loan top-up and take over are significantly related and they have the
good explanatory powers.
Table 5.47
Coefficients- loan top-up and take over
t Sig.
Model
Std. Std.
B Beta B
Error Error
(Constant) 3.710 .029 127.337 .000
Delay in loan sanction .138 .029 .183 4.725 .000
Demand numerous
.027 .029 .036 .925 .356
documents
1
salaried and other .061 .029 .082 2.108 .036
groups of customers
.113 .029 .150 3.887 .000
deduction
a Dependent Variable: loan top up and take over
175
From the above table it is found that default interest (t = 10.606, p =
0.000), delay in loan (t=4.725, p=0.000), discrimination between salaried and
other groups of customers (t=2.108, p=0.036), exorbitant insurance (t=3.887,
p=.000) and pre closure charges (t=3.168, p=.002) are statistically significant
at 5 percent level. On the whole, it can be concluded that the customers of
LIC receive the benefits of loan top up and take over in-spite of experiencing
more charges and high interest rate on the loans sanctioned.
INFLUENCE OF PROBLEMS ON FLEXIBLE REPAYMENT

BENEFITS LIC HOUSING FINANCE
The influence of six factors of problems on flexible repayment benefits

by LIC housing fiancé is measured through regression analysis and the results
are presented below.
Table 5.48
Model Summary- Problems on flexible repayment benefits
R Adjusted R Std. Error of

Model R
Square Square the Estimate
1 .361(a) .130 .120 .75550

variables of problems explain the flexible repayment benefits for LIC housing
customers at 13 % level. The goodness of regression fit is presented in the
following table.
176
Table 5.49
ANOVA- Problems on flexible repayment benefits
Sum of Mean
Model df F Sig.
Squares Square
Regression 42.886 6 7.148 12.522 .000(a)
1 Residual 287.105 503 .571
Total 329.991 509
aPredictors: (Constant), user friendly, extensive reliability, cost effectiveness,
brand delight, service efficiency, Technical approach
b Dependent Variable: service augmentation
From the above table it is found that the F-value =12.522, p=0.000 are
flexible repayment benefits variable are significantly related and they have the
good explanatory powers.
Table 5.50
Coefficients - Problems on flexible repayment benefits
t Sig.
Mode Coefficients Coefficients
l Std. Std.
B Beta B
Error Error
(Constant) 3.811 .033 113.910 .000
Delay in loan
.097 .033 .121 2.903 .004
sanction
Demand
numerous .061 .033 .076 1.816 .070
documents
1 Discrimination
between salaried
.139 .033 .172 4.143 .000
and other groups
of customers
Exorbitant
insurance .056 .033 .069 1.669 .096
deduction
Pre-closure
.106 .033 .132 3.172 .002
charges
a Dependent Variable: service augmentation
177
p=0.000), delay in loan sanction (t=2.903, p=0.004), discrimination between
salaried and other groups of customers (t=4.143, p=0.000) and pre closure
charges (t=3.172, p=0.002) are statistically significant at 5 percent level. The
multiple regression analysis clearly displayed that the customer of LIC
housing expressing the problems of higher interest pre-closures charges on
repayment of loan at the time of flexible repayment.
INFLUENCE OF PROBLEMS ON INSURANCE COVERAGE FOR

LOANS IN LIC HOUSING FINANCE
The influence of six factors of problems on insurance coverage for loan

amount by LIC housing fiancé is measured through regression analysis and
Table 5.51
Model Summary- Problems on insurance coverage for loans
Adjusted R Std. Error of the

Model R R Square
Square Estimate
1 .354(a) .126 .115 .63211
b Dependent Variable: insurance coverage for loans.

variables of problems explain the benefits of customers of LIC towards
insurance coverage for loans 12.6 % level. The goodness of regression fit is
presented in the following table.
178
Table 5.52
ANOVA- Problems on insurance coverage for loans
Sum of
Squares
Regression 28.854 6 4.809 12.036 .000(a)
1 Residual 200.981 503 .400
Total 229.835 509
b Dependent Variable: insurance coverage for loans
of the customers and benefits received by customers of LIC housing finance
are significantly related and they have the good explanatory powers.
Table 5.53
Coefficients - Problems on insurance coverage for loans
t Sig.
Model
Std.
B Beta B Std. Error
Error
(Constant) 3.925 .028 140.244 .000
Default interest -.164 .028 -.244 -5.858 .000
Delay in loan
.080 .028 .119 2.842 .005
sanction
Demand numerous
.127 .028 .189 4.531 .000
documents
1 Discrimination
between salaried and
-.003 .028 -.004 -.107 .915
other groups of
customers
.083 .028 .123 2.954 .003
deduction
Pre-closure charges -.021 .028 -.031 -.741 .459
a Dependent Variable: higher technology
179
From the above table it is found that default interest (t=-5.858,
p=0.000), delay in loan sanction (t=2.842, p=0.005), demand of numerous
documents (t=4.531, p=0.000) and exorbitant insurance (t=2.954, p=.003) are
statistically significant at 5 percent level. Therefore it can be concluded that
the customers are motivate towards the benefit of insurance coverage for their
loan amount in-spite of the problems experienced by the customers of LIC
housing at the time of availing the loans.
INFLUENCE OF PROBLEMS ON MINIMUM INITIAL PAYMENT

OF HUGE LOAN AMOUNT IN LIC HOUSING FINANCE
The influence of six factors of problems on minimum initial payment

by LIC housing fiancé is measured through regression analysis and the results
are presented below.
Table 5.54
Model Summary- Problems and minimum initial payment
Adjusted R Std. Error of the

Model R R Square
Square Estimate
1 .518(a) .269 .260 .58260
b Dependent Variable: insurance coverage for loans

variables of problems and the benefits of minimum initial payment by the LIC
housing is 26.9 % level. The goodness of regression fit is presented in the
following table.
180
Table 5.55
ANOVA- Problems and minimum initial payment
Sum of
Squares
Regression 62.764 6 10.461 30.818 .000(a)
1 Residual 170.732 503 .339
Total 233.495 509
b Dependent Variable: Minimum initial payment.
of the customers in LIC housing loans and minimum initial payments variable
are significantly related and they have the good explanatory powers.
Table 5.56
Coefficients - Problems and minimum initial payment
t Sig.
Model
Std. Std.
B Beta B
Error Error
(Constant) 3.957 .026 153.378 .000
Delay in loan
.137 .026 .202 5.290 .000
sanction
Demand numerous
-.086 .026 -.127 -3.323 .001
documents
1 Discrimination
between salaried
.097 .026 .143 3.749 .000
and other groups of
customers
Exorbitant
.074 .026 .109 2.856 .004
insurance deduction
a Dependent Variable: billing services
181
p=0.000), delay in loan sanction (t=5.290, p=0.000), demand numerous
documents (t=-3.323, p=0.000), discrimination between salaried and other
group of customers (t=3.749, p=.000), exorbitant insurance deduction
(t=2.856, p=0.004) and pre-closure charges (t=6.659, p=.000) are statistically
significant at 5 percent level. The customers of LIC avail the benefits of
minimum initial payment at the time of availing housing loans.
THE FACTORS INFLUENCING THE CUSTOMERS OF LIC

HOUSING FINANCE ON THE BENEFITS OF THE CUSTOMERS
Factor Analysis by Principal Component Method identified the

predominant factors influencing the customers of LIC housing finance and the
benefits of the customers at time of borrowing loan from LIC housing
finance. These predominant factors and their total average scores created new
continuous type variables which are more suitable for the parametric
treatment. Therefore in this juncture, the researcher is interested to sharply
estimate the factors influencing customers for LIC housing finance and the
benefits received. This estimate would ascertain the various independent
variables influencing it. Therefore a multiple regression analysis is
independently applied among the nine factors. In the regression analysis, the
factors identified under benefits are considered as dependent variables.
FACTORS INFLUENCING THE CUSTOMERS OF LIC HOUSING

FINANCE ON SANCTIONING OF HUGE LOAN AMOUNT
The influence of nine factors influencing the customers of LIC housing

finance as independent factors on the dependent factor sanctioning of huge
loan amount is measured in the following model summary table.
182
Table 5.57
Model Summary

Model R
1 .621(a) .386 .378 .78893924
a Predictors: (Constant), easy asset, Innovative procedures, quick process,
Interest rate, loan disbursement, Easy repayment, Transparency, loan type and
processing fee and lump sum sanction
From the above table, it is found that R-value = 0.621, R-Square =.386,
adjusted R-square is 0.378 are statistically significant and the independent
variables are 38.6% variance over the benefits received by the customers of
LIC housing finance towards the loan borrowed. This leads to the further
verification of regression fit of unique dependent and multiple independent
variables.
Table 5.58
ANOVA (b)
Sum of
Squares
Regression 313.437 11 28.494 45.780 .000(a)
1 Residual 498.563 801 .622
Total 812.000 812
b Dependent Variable: Sanction of huge loan amount
From the above table it is found that the F-value 45.780, P-value =
0.000 are statistically significant at 5 percent level. This implies the
regression fit is significant and the independent variables appropriately
explain the dependent factor sanction of huge loan amount. The individual
183
influence of all the nine independent variables are presented in the following
co-efficient table.
Table 5.59
Coefficients (a)
t Sig.
Model
Std. Std.
B Beta B
Error Error
(Constant) 5.59E-017 .028 .000 1.000
Easy Asset -.239 .038 -.239 -6.291 .000
Innovative
-.200 .033 -.200 -5.982 .000
Procedures
Quick Process -.123 .033 -.123 -3.722 .000
Interest Rate .133 .036 .133 3.730 .000
1 Loan
.042 .043 .042 .981 .327
Disbursement
Easy Repayment -.021 .042 -.021 -.494 .622
Transparency -.036 .044 -.036 -.812 .417
Loan Type and
.292 .037 .292 7.889 .000
Processing Fee
Lump Sum
.496 .047 .496 10.516 .000
Sanction
a Dependent Variable: sanction of huge loan amount
From the above table it is found that Easy asset(t=-6.291, p=0.000),

Innovative procedure (t= -5.982, p=0.000), Quick process (t= -3.722,
p=0.000), Interest rate (t=3.730, p=0.000), loan type and process fee ( t=7.889,
p=0.000), Lump sum sanction (t=10.516, p=0.000), are statistically significant
to explain the benefits sanction of huge loan amount. This implies customers
are influenced towards LIC housing loan when compared to other housing
loan companies due to its innovation and quick process, reasonable interest
rate and processing fee charged on the loans borrowed.
184
FINANCE ON DIRECT AND INDIRECT TAX BENEFITS
The nine factors influencing the customers of LIC housing finance as

independent factors on the dependent factor direct and indirect tax benefits is
measured in the following model summary table.
Table 5.60
Model Summary

Model R
1 .582(a) .338 .329 .81908928
processing fee and lump sum sanction.
variables are 33.8% variance over the direct and indirect tax benefits received
by the customers of LIC housing loans. This leads to the further verification
of regression fit of unique dependent and multiple independent variables.
Table 5.61
ANOVA (b)
Sum of Mean
Model df F Sig.
Squares Square
Regression 274.603 11 24.964 37.209 .000(a)
1 Residual 537.397 801 .671
Total 812.000 812
b. Dependent Variable: Direct and indirect tax benefits.
185
explain the dependent factor direct and indirect tax benefits. The individual
co-efficient table.
Table 5.62
Coefficients (a)
t Sig.
Model
Std. Std.
B Beta B
Error Error
1.58E-
(Constant) .029 .000 1.000
016
Easy Asset .144 .039 .144 3.639 .000
Innovative
.068 .035 .068 1.945 .052
Procedures
Quick Process .071 .034 .071 2.053 .040
Interest Rate .055 .044 .055 1.253 .210
1 Loan
-.236 .044 -.236 -5.393 .000
Disbursement
Easy Repayment -.085 .046 -.085 -1.852 .064
Transparency .059 .042 .059 1.416 .157
Loan Type and
.130 .038 .130 3.398 .001
Processing Fee
Lump Sum
.462 .049 .462 9.425 .000
Sanction
a Dependent Variable: Direct and indirect tax benefits
From the above table it is found that Easy asset (t=3.639, p=0.000),
Quick process (t= 2.053, p=0.040), loan disbursement (t= -5.393, p=0.000),
loan type and process fee (t= 3.398, p=0.001), lump sum sanction (t= 9.425,
186
p=0.000), are statistically significant to explain the benefits direct and indirect
tax benefits. This implies that the customers are influenced towards LIC
housing finance due to more benefits sanction by LIC to the customers at the
time of availing their housing loans.

FINANCE ON LOAN TOP-UP AND TAKE OVER

finance as independent factors on the dependent factor loan top-up and take
over is measured in the following model summary table.
Table 5.63
Model Summary
Std. Error of the

Model R R Square Adjusted R Square
Estimate
1 .519(a) .269 .259 .86078804
variables are 26.9% variance over the loan top-up and take over benefits
availed by the customers of LIC housing loan. This leads to the further
verification of regression fit of unique dependent and multiple independent
variables.
187
Table 5.64
ANOVA (b)
Sum of
Squares
Regression 218.494 11 19.863 26.807 .000(a)
1 Residual 593.506 801 .741
Total 812.000 812
b Dependent Variable: loan top-up and take over
explain the dependent factor loan top-up and take over. The individual
co-efficient table.
Table 5.65
Coefficients (a)
t Sig.
Model
Std. Std.
B Beta B
Error Error
(Constant) -2.42E-016 .030 .000 1.000
Easy Asset .250 .041 .250 6.030 .000
Innovative Procedures .174 .036 .174 4.780 .000
Quick Process .098 .041 .098 2.357 .019
Interest Rate .097 .039 .097 2.474 .014
1 Loan Disbursement .188 .046 .188 4.058 .000
Easy Repayment .086 .046 .086 1.856 .064
Transparency -.029 .044 -.029 -.674 .500
Loan Type and -
-.091 .040 -.091 .024
Processing Fee 2.268
Lump Sum Sanction -.010 .051 -.010 -.199 .843
a Dependent Variable: loan top-up and take over
188
From the above table it is found that Easy asset (t=6.030, p=0.000),
Innovative procedures (t=4.780, p=0.000), Quick process (t= 2.357, p=0.019),
Interest rate (t=2.474, p=0.014), loan disbursement (t=4.058, p=0.000), Loan
type and processing fee (t=-2.268, p=0.024) are statistically significant to
explain the benefits of loan top-up and take over. Therefore it is inferred that
the LIC housing finance influenced the customers of housing loans by
charging a reasonable rate of interest, quick process, and processing fee
charges at a reasonable rate of interest compared to other housing finance
companies.

FINANCE ON FLEXIBLE REPAYMENT BENEFITS

finance as independent factors on the dependent factor flexible repayment
benefits is measured in the following model summary table.
Table 5.66
Model Summary

Model R
1 .344(a) .118 .106 .94532319
variables are 11.8% variance over the flexible repayment benefits. This leads
to the further verification of regression fit of unique dependent and multiple
independent variables.
189
Table 5.67
ANOVA (b)
Sum of Mean
Model df F Sig.
Squares Square
Regression 96.198 11 8.745 9.786 .000(a)
1 Residual 715.802 801 .894
Total 812.000 812
b Dependent Variable: Flexible repayment benefits
From the above table it is found that the F-value 9.786,

P-value = 0.000 are statistically significant at 5 percent level. This implies the
explain the dependent factor flexible repayment benefits. The individual
co-efficient table.
Table 5.68
Coefficients (a)
t Sig.
Model
Std. Std.
B Beta B
Error Error
(Constant) 2.61E-016 .033 .000 1.000
Easy Asset .125 .046 .125 2.736 .006
Innovative Procedures .100 .040 .100 2.496 .013
Quick Process .156 .040 .156 3.930 .000
Interest Rate .111 .046 .111 2.443 .015
1 Loan Disbursement .038 .051 .038 .745 .456
Easy Repayment -.073 .053 -.073 -1.375 .170
Transparency .045 .048 .045 .934 .351
Loan Type and
-.060 .044 -.060 -1.347 .178
Processing Fee
Lump Sum Sanction .139 .057 .139 2.466 .014
a Dependent Variable: Flexible repayment benefits
190
From the above table it is found that Easy Asset (t=2.736, p=0.006),
Innovative procedure (t=2.496, p=0.013), Quick process (t=3.930, p=0.000),
Interest rate (t=2.443, p=0.015), lump-sum sanction (t=2.466, p=0.014), are
statistically significant to explain the flexible repayment benefits. Therefore
the customers of LIC housing loan are influenced towards LIC housing loans
due to its flexible repayment benefits and lump-sum sanction of the loan
amount at a reasonable interest rate in a quick process.

FINANCE ON INSURANCE COVERAGE FOR LOANS

finance as independent factors on the dependent factor insurance coverage for
loan amount is measured in the following model summary table.
Table 5.69
Model Summary

Model R
1 .125(a) .016 .002 .99895577
variables are 1.6% variance over the benefits of insurance coverage for loans.
This leads to the further verification of regression fit of unique dependent and
multiple independent variables.
191
Table 5.70
ANOVA (b)
Sum of Mean
Model df F Sig.
Squares Square
Regression 12.672 11 1.152 1.154 .315(a)
1 Residual 799.328 801 .998
Total 812.000 812
b Dependent Variable: Insurance coverage for loans
explain the dependent factor insurance coverage for loans. The individual
co-efficient table.
Table 5.71
Coefficients (a)
t Sig.
Model
Std. Std.
B Beta B
Error Error
(Constant) 7.41E-017 .035 .000 1.000
Easy Asset .012 .042 .012 .283 .777
Innovative
-.066 .048 -.066 -1.362 .174
Procedures
Quick Process -.063 .045 -.063 -1.395 .163
Interest Rate -.028 .054 -.028 -.527 .598
1
Loan Disbursement .073 .053 .073 1.363 .173
Easy Repayment .017 .056 .017 .312 .755
Transparency .029 .051 .029 .569 .570
Loan Type and
.066 .047 .066 1.408 .160
Processing Fee
Lump Sum Sanction .012 .060 .012 .195 .846
a Dependent Variable: Insurance coverage for loans
192
From the above table it is found all the factors influencing the
customers of LIC housing finance on the benefits insurance coverage for loans
are not statistically significant. The opinion of all the customers toward the
nine factors influencing them towards LIC housing finance is same.

FINANCE ON MINIMUM INITIAL PAYMENT

finance as independent factors on the dependent factor minimum initial
payment is measured in the following model summary table.
Table 5.72
Model Summary

Model R
1 .059(a) .003 -.002 1.00075161
adjusted R-square is -0.002 are statistically significant and the independent
variables are 0.3% variance over the benefits minimum initial payment. This
leads to the further verification of regression fit of unique dependent and
multiple independent variables.
193
Table 5.73
ANOVA (b)
Sum of Mean
Model df F Sig.
Squares Square
Regression 2.785 4 .696 .695 .000(a)
1 Residual 809.215 808 1.002
Total 812.000 812
b Dependent Variable: Minimum initial payment
explain the dependent factor minimum initial payment. The individual
co-efficient table.
Table 5.74
Coefficients (a)
t Sig.
Model
Std. Std.
B Beta B
Error Error
(Constant) 7.79E-017 .035 .000 1.000
Easy Asset -.027 .035 -.027 -.772 .440
Innovative
.011 .035 .011 .307 .759
Procedures
Quick Process -.050 .035 -.050 -1.426 .154
1 Interest Rate -.008 .035 -.008 -.242 .809
Loan Disbursement -.006 .035 -.006 -.178 .859
Easy Repayment .050 .035 .050 1.429 .153
Transparency -.090 .035 -.090 -2.589 .010
Loan Type and
-.084 .035 -.084 -2.396 .017
Processing Fee
Lump Sum Sanction .035 .070 1.999 .046 .035
a Dependent Variable: Minimum initial payment
194
From the above table it is found that transparency (t=-2.589, p=0.010),
Lon type and processing fee (t= -2.396, p=0.010), Loan type and processing
fee (t= -2.396, p=0.017), lump sum sanction (t=.046, p=0.035) are statistically
significant to explain the benefits minimum initial payment. Therefore it is
analyzed from the above table that minimum initial payments charged by LIC
housing finance on its customers based on their income earned and the loan
amount sanction is the factors that influences majorly towards LIC housing
finance.
Therefore it is concluded that housing and quality of living are

intimately related. Good housing also increases productivity of people.
Buildings or structures that individuals and their family may live in that meet
certain federal regulations. Therefore, it is necessary for LIC housing finance
to provide housing loan to all class of people based on their income scale and
repaying capacity.
195

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CHAPTER – V

PROBLEMS AND BENEFITS OF LIC HOUSING FINANCE

This present chapter deals with various problems faced by the

PROBLEMS FACED BY CUSTOMERS OF LIC HOUSING FINANCE

One-Sample Statistics for Problems of customers in LIC Housing finance

Std. Std. Error

Exorbitant insurance deductions 510 3.6500 .75697 .03257

One-Sample Test for Problems of customers in LIC Housing finance

CLASSIFICATION OF PROBLEMS FACED BY THE CUSTOMERS

In this section the problems faced by the customers at the time of

Final Cluster Centers

Number of Cases in each Cluster

Detached Customer 78.000 15.29

The first cluster comprises of 78 (15.29%) of the customers expressed

The second cluster comprises of 264 (51.76%) customers expressed to

The third cluster consists of 168 (32.952%) expressed to incur

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The variables of problems of the customers in loan sanction in LIC

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The association between the clusters of problems incurred by the

Crosstab for Age of the customers

Chi-Square Tests for Age of the customers of LIC housing finance

Value df Asymp. Sig. (2-sided)

From the above table, it is found that Pearson chi-square statistics

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The association between the clusters of problems incurred by the

Crosstab – Educational Qualification

From the above table, it is found that 33.3% of detached customers

Chi-Square Tests – Educational Qualification

Value df Asymp. Sig. (2-sided)

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The association between the clusters of problems incurred by the

Crosstab – Occupation of the customers

From the above table, it is found that 78.2% detached customers of

Chi-Square Tests –Occupation of the customers

Value df Asymp. Sig. (2-sided)

From the above table, it is found that Pearson chi-square statistics

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The association between the clusters of problems incurred by the

Crosstab – Monthly income

From the above table, it is found that 43.6% of detached customers

Chi-Square Tests - Monthly income

Value df Asymp. Sig. (2-sided)

From the above table, it is found that Pearson chi-square statistics

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The association between the clusters of problems incurred by the

Crosstab –Number of years dealing with LIC

No. of years dealing with LIC

From the above table, it is found that 37.2% of detached customers

Chi-Square Tests - Number of years dealing with LIC

Value df Asymp. Sig. (2-sided)

From the above table, it is found that Pearson chi-square statistics

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The association between the clusters of problems incurred by the

Crosstab – Amount of housing loan borrowed

Amount of housing loan borrowed

From the above table, it is found that 55.1% of detached customers

Chi-Square Tests - Amount of housing loan borrowed

Value df Asymp. Sig. (2-sided)

From the above table, it is found that Pearson chi-square statistics

ASSOCIATION BETWEEN PROBLEMS OF THE CUSTOMERS IN

The association between the clusters of problems incurred by the