Home Loan Project

A STUDY ON CUSTOMER SATISFACTION REGARDING TO HOME LOAN IN
MANAPPURAM FINANCE LIMITED
CHAPTER 1
BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

INTRODUCTION
Housing finance has changed a lot over time. Loic Chiquier and Michael Lea say that it's a
complicated system that involves a lot of different factors, like laws, culture, economy,
regulations, and politics. The need for housing keeps growing, and housing finance helps
make sure everyone has a place to live. It also helps the economy grow and stops slums from
spreading. The government has to help people get the money they need to buy homes. In
India, the housing finance industry has changed a lot from being run only by the government
to having lots of different companies all over the country. Homes have always been important
for people's growth and development since the beginning of time.
Having a place to live is super important for us humans. It's not just about having a roof over
our heads; it's about being able to live with dignity. Good housing makes it easier for us to do
things like go to school, work, and stay healthy. But not everyone has access to good housing.
In some countries, like India, there's not enough housing for everyone. The government is
trying to make changes to help more people get affordable housing, but it's not easy. One big
problem is that there's not enough money to build more houses. Banks and other financial
institutions play a big role in helping people get loans to buy homes, but in India, this system
is still developing. This means that many people struggle to become homeowners or end up
living in poor-quality housing. It's a tough situation, but hopefully, things will improve in the
future.
Getting a home loan is a big deal and it's super important to understand what you're getting
into. In the past ten years, more and more people have been taking out home loans. This is
because of changes in the way we think about money, as well as our connections to other
countries where home loans are common. Also, the government has been giving tax breaks to
people who take out home loans, and young people in India are making more money than
ever before. So, the future looks bright for home loans! There are lots of banks and
companies that offer home loans with low interest rates.
Both public and private banks offer competitive home loan options. Many people like to go
with public banks because they feel like they're safer and the interest rates are lower. But
private banks are becoming more popular, especially with younger people, because they offer

better services. It's really important for customers to understand all the terms and conditions
of a home loan before they apply. There are different types of home loans out there, so make
sure you find the one that's right for you!
Home Purchase Loans
Home Improvement Loans,
 Home Construction Loans,
 Home Extension Loans,

 Home Conversion Loans,
 Land Purchase Loans; Bridge
 Loans &Mortgage Loans offered by public and private sector banks

CHAPTER II

REVIEW OF LITERATURE
Beristain David from 2001 to 2008, it was found that more people were opting for home
loans instead of private mortgage insurance (PMI). The study was divided into four sections.
The first section explains why people are choosing home loans over PMI. One of the main
reasons is that home loan markets now offer Piggybank loans for those who can't afford a
20% down payment. The second section discusses the factors contributing to the growth of
home loans and the risks of not having PMI coverage. PMI can protect lenders from losses,
but without it, there can be significant financial losses. The third section talks about changes
in the types of loans being taken out. Data from the 2001 and 2007 AHS project by HUD and
Census showed a rise in owner-occupied properties with multiple mortgages. The final
section looks at the financial status of households with single and multiple loans. The survey
of consumer finance revealed that households with multiple loans are in a weaker financial
position compared to those with single loans.
La courr, Micheal: So, basically, this guy did a study to figure out why the Annual
Percentage Rates (APR) for loans went up in 2005 compared to 2004. He found three main
reasons: changes in how lenders do business, changes in the risk of the people borrowing
money, and changes in the overall economy. After looking at all the different types of loans
and risks involved, he found that loans given out directly by lenders didn't really change
much in 2005. But loans given out through other channels did go up. Based on all this, he
thinks that in 2006, we'll see even more loans with higher APRs. We'll have to wait until
September 2007 to know for sure though.
B. Chandra Mohan Patnaik and others in 2017, they looked at how the home loan industry
in India has grown over time. They examined different stages of growth and development, as
well as how home loans contribute to the country's economy. They also looked at how new
laws like GST affect the housing market and what challenges the industry faces. Finally, they
tried to predict what the future holds for home loans in India.
Patnaik B.C. and colleagues in 2017, they looked at different research papers about home
loans. They found that there are many factors that affect the home loan industry, such as
financial basics, interest rates, paperwork, profitability, customer awareness, government
housing policies, service quality, and borrower's economic profile. These factors all play a
role in how home loans work and who can get them.
S.V. SATYANARAYANA and his team compared public and private housing finance
companies (HFCs) in India. With the housing sector growing, more banks and financial
institutions are offering different types of housing finance services. Public and private HFCs
are working hard to provide housing finances to everyone. The study looked at the financial

performance of five public HFCs and five private HFCs from 2009 to 2018. They used
numbers to compare how well these companies were doing. The study found that profitability
and operating ratios were important for both public and private HFCs. The researchers
suggest that rules and policies should be changed to help these companies make more money
and work more efficiently. This study could help make the housing finance sector better in
India.
P. Vanitha Malarvizhi, the focus is on comparing the gold loan services offered by public
sector banks and non-banking financing companies in Madurai. The research looks at what
borrowers prefer when it comes to getting a gold loan, how much they know about the rules
for borrowing, what factors influence their decision to get a gold loan, the challenges they
face during the process, and how satisfied they are with the services provided by these
institutions. The researcher surveyed 107 people who have taken out gold loans from public
sector banks and non-banking financing companies in Madurai. They used a questionnaire to
gather information, analysed the data using statistics, tested hypotheses, and drew
conclusions about whether their theories were correct or not.
RESEARCH AND METHODOLOGY
Research methodology is all about how researchers do their work. It includes things like what
kind of research to do, how to collect data, and what tools to use to analyse that data. It's like
a roadmap for conducting research. Researchers need to know different techniques, how to
develop tests, and how to interpret results. Research methodology is like a science that helps
researchers solve problems in a systematic way. It's important for researchers to understand
the logic behind the steps they take and to know which methods are relevant to their work. In
the end, research methodology is a key part of the research process.
RESEARCH DESIGN
Research design is like a blueprint for a research project. It's all about figuring out what you
want to study, where you'll study it, when you'll study it, how much information you need,
and how you'll gather that information. Basically, it's the plan that guides the whole research

process. Having a good research design is important because it helps things run smoothly and
efficiently. It ensures that you get the most information possible without wasting time or
money. The way you set up your research design can even affect how reliable your results
are. So, it's a pretty big deal
DATA COLLECTION
We gathered some information to help us reach our goals for the project.
PRIMARY DATA
We wanted to know if people were happy with their home loans, so we asked them some
questions. We made a survey and chatted with folks either face-to-face or on the phone to
hear what they had to say.
SECONDARY DATA
I found all the information I needed for my project by looking at the company's website, their
annual report, some journals, and a few books.
SOURCE OF DATA
We're going to gather our own information by asking people questions. We'll be talking to 76
people in Chennai. We're going to use a questionnaire during a one-on-one interview to get
the info we need.
SAMPLE DATA
When we do a survey, we pick a few people to answer our questions. These people are called
samples. They're like a small group that stands for the whole population. So, when we talk
about samples, we're really just talking about a few people who help us understand what
everyone thinks or feels.
SAMPLE SIZE
The numerical value of the representation is the sample size, sample size =76
SAMPLE TECHNIQUE

In this study, we're using something called stratified sampling. This means we're dividing the
population into different groups based on certain characteristics. Then, we choose subjects
from each group based on their chances of being picked. It's a way to make sure our sample
represents the whole population accurately.

CHAPTER III

INDUSTRY PROFILE
the industry profile comprises of

1.financial services.
2.infrastructure sector.
3.Real-estate industry.
Non-banking financial companies are super important because they help more people get
access to money stuff and make the money world more interesting. In India, there are
different kinds of places that help with money stuff like regular banks, special money
institutions, and non-banking finance companies. Thanks to some changes in the money
world, these non-banking companies have become a big deal in India's money system.
NBFCs are like special financial clubs that lend money, invest money, or collect money from
people. But they don't include places that focus on farming, factories, buying and selling
stuff, or real estate. If a company's main job is to take people's money as deposits, it's also
considered an NBFC.
In India, there are lots of different financial groups growing really fast. There are banks,
insurance companies, special financial clubs (NBFCs), co-ops, retirement funds, mutual
funds, and other small financial groups. The people who make the rules for banks have even
allowed new groups like payments banks to start up, making the financial world even more
diverse.
India's government has made some big changes to help small businesses grow. They've made
it easier for these businesses to get loans and support. The government and the Reserve Bank
of India have worked together to create programs like the Credit Guarantee Fund Scheme and
the Micro Units Development and Refinance Agency. With help from both the government
and private companies, India's economy is booming. In 2017, a new website called Udyami
Mitra was launched to help small businesses get the money they need. India is doing a great
job at protecting the rights of shareholders, thanks to reforms by the Securities and Exchange
Board of India. And in November 2019, the government set aside a lot of money to help
housing projects that were stuck.
The infrastructure sector in India is super important for the country's economy. It helps India
grow and develop by building things like power plants, bridges, dams, roads, and cities. The
government is really focused on making sure that these projects are done quickly and are top-
notch. In 2018, India was ranked 44th out of 167 countries for how well it handles logistics.
From 2000 to 2019, India received over $25 billion in foreign investment for construction
projects. The logistics industry in India is growing fast and is expected to reach $215 billion
by 2020. So basically, building stuff in India is a big deal and helps the country get better and
better. The real estate sector is a big deal all around the world. It's made up of four parts -
housing, retail, hospitality, and commercial. This sector is growing because more businesses

are popping up and people need places to work and live. The construction industry is also
doing well and has a big impact on the economy. People from other countries are starting to
invest in real estate here, especially in places like Bengaluru, Ahmedabad, Pune, Chennai,
Goa, Delhi, and Dehradun.
In the next 20 years, the real estate market in India is going to get super big, like Rs 65,000
crore big! That's a huge jump from Rs 12,000 crore in 2019. The real estate sector is expected
to be worth a whopping US$ 1 trillion by 2030, which is a huge increase from US$ 120
billion in 2017. This means that real estate is going to be a big part of India's economy,
contributing 13% to the country's GDP by 2025. Not only that, but retail, hospitality, and
commercial real estate are also growing a lot to meet the needs of India's growing population.
From 2017 to 2028, Indian real estate grew by 19.5% every year. Sectors like IT, retail,
consulting, and e-commerce are all looking for more office space, which is driving the
demand for commercial real estate. By the end of 2018, there will be over 600 million square
feet of office space in India, with over 100 million square feet being leased in the top eight
cities between 2018 and 2020. In the first nine months of 2018, the amount of office space
being used in top Indian cities went up by 26% compared to the year before.
Co-working spaces are also becoming more popular, with 3.44 million square feet being used
in the top seven cities in 2018, compared to just 1.11 million square feet in 2017. In 2019,
there will be even more office space being built, with a 15% increase expected to reach 43.6
million square feet. So, it looks like the real estate market in India is going to keep on
growing
COMAPANY PROFILE
Manappuram Finance Limited (MAFIL) is a big company in India that mostly gives out loans
using gold as collateral. They offer all kinds of loans to regular people and businesses. They
are known for being one of the top companies in India that gives out gold loans. They have a
lot of branches all over India and have helped millions of customers. Besides gold loans, they
also give out loans for things like houses, vehicles, and equipment. They even offer insurance
services.
Manappuram Finance Limited has a housing finance business called Manappuram Home
Finance Limited (MAHOFIN). They started in 1992 and have been growing ever since. In the
early years, they opened new branches in different cities and even started a Forex business in
2002. They also got into other activities like insurance, vehicle finance, and online share
trading. They even partnered with companies like Xpress Money and Money Gram for instant
money transfers. As they expanded, they acquired other companies and opened more
branches. In 2006, they got a special license from the Reserve Bank to do non-trade
remittances. They also got an insurance broking license from IRDA. By 2009, they had
improved their IT systems and branch connectivity to better support their operations.

Manappuram Finance Limited has come a long way since they started, and they continue to
grow and offer new services to their customers.
The company bought all the stuff and debts of Manappuram Printers, a small business that
sells school supplies, for a total of Rs 10 million. On November 4, 2008, the company sold
their investment in Manappuram Insurance Brokers Pvt Ltd to one of the directors for Rs 5.86
million. In 2009-10, they combined Manappuram Finance Tamil Nadu Ltd with the company.
They also opened their 1001st branch in Thrissur. In 2011, the company changed its name to
Manappuram Finance Ltd from Manappuram General Finance and Leasing Ltd.
In 2012, Manappuram Finance hit a major milestone by managing over Rs 10000 crore in
assets! They also opened a bunch of new branches, bringing their total to 2,908. Two years
later, in 2014, they started offering shorter loans with lower interest rates. They even bought
out another company and renamed it Manappuram Home Finance Private Limited. Plus, their
shares were listed on the National Stock Exchange.
The big bosses at Manappuram Finance had a meeting on September 23, 2014, and they
decided to start helping out people with small loans through Micro Financing. They also
talked about getting into the business of financing Commercial Vehicles and becoming a
depository participant. Then, on December 23, 2014, they gave the thumbs up to buying 70%
of Asirvad Micro Finance Pvt. Ltd. in Chennai. But they still need the okay from the Reserve
Bank of India before they can make it official. Exciting stuff happening over at Manappuram
Finance
The company wants to own more of another company by putting in more money. They plan
to invest about Rs 136 crore to increase their ownership to 85%. In 2015, they bought a
company called Asirvad Microfinance Pvt. Ltd. in Chennai, which had almost Rs 300 crore in
assets. Asirvad is a business that gives out small loans, and they have about 115 branches in
Tamil Nadu, Kerala, and Karnataka. The company also bought an insurance broker for Rs
1.55 crore, which is approved by the RBI and IRDAI. In 2016, they bought all the shares of
the insurance broker for the same amount. The insurance broker helps people get life and
general insurance. The company's board also approved giving Asirvad Microfinance Limited
up to Rs 50 crore in new money in 2017.
In November 2017, the Company started helping small and medium-sized businesses that
weren't getting enough support. Then, in July 2018, Manappuram Finance bought most of the
shares of Indian School Finance Company Private Limited. In 2019, the Company got a new
subsidiary called Manappuram Comtech and Consultants Limited [MACOM]. The Company
also owns most of the shares of Asirvad Microfinance Limited, Manappuram Home Finance
Limited, Manappuram Insurance Brokers Limited, and Manappuram Comtech and
Consultants Limited as of March 31, 2019.
Guess what, guys? There's a cool new loan called Gold Loan that just came out in Odisha and
West Bengal on March 10, 2021. The company's total money grew by 17.20% to a whopping
Rs 3,54,523 million in 2023 because of how fast microfinance (39.70%), housing finance
(29.60%), and vehicle finance (49.40%) are growing. By March 31, 2023, the company had
3,524 Gold Loan branches. They own a big chunk of other companies too, like 97.60% of

M/s. Asirvad Microfinance Limited, 100% of M/s. Manappuram Home Finance Limited,
100% of M/s. Manappuram Insurance Brokers Limited, and 99.81% of Manappuram Comp
tech and Consultants Limited as of March 31, 2023. They're all over India with 5,232
branches in 28 states and 4 union territories, serving over 5.09 million customers in 2022-23.
How awesome is that?

Home Loan Project

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A STUDY ON CUSTOMER SATISFACTION REGARDING TO HOME LOAN IN

MANAPPURAM FINANCE LIMITED

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

Home Purchase Loans

Home Improvement Loans,

 Home Construction Loans,

 Home Extension Loans,

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

RESEARCH AND METHODOLOGY

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

the industry profile comprises of

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

BHEEMI REDDY INSTITUTE OF MANAGEMENT SCIENCE

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