SPECIALIZATION PROJECT

ON
“ANALYSIS ON CUSTOMER SATISFACTION ON HOME LOANS
IN HERO HOUSING FINANCE WITH OTHER COMPETATIVE
FINANCE”
Submitted in partial fulfilment for the award of the degree of
Master of Management Studies (MMS).

(University of Mumbai)

Submitted By
(RUPALI SURESH PATIL )
(Roll No.-MB22097-)

Under the Guidance of

PROF. (DEEPAK NAIR)
AcademicYear 2023-24

SAS INSTITUTE OF MANAGEMMENT STUDIES (MMS),

Saravali, Boisar (w),
Tal. & Dist. Palghar (MH) -401 501.
 Enrich Enhance Elevate

CERTIFICATE
This is to certify that project titled “ANALYSIS ON CUSTOMER
SATISFACTION ON HOME LOANS IN HERO HOUSING FINANCE
WITH OTHER COMPETATIVE FINANCE”

is successfully completed by (RUPALI SURESH PATIL) during the IV

Semester, in partial fulfillment of the Master’s Degree in Management Studies
recognized by the
University of Mumbai for the academic year 2023-24 through SAS INSTITUTE
OF MANAGEMENT STUDIES.
This project work is original and not submitted earlier for the award of any
degree /diploma or associateship of any other university / Institution.

Internal Examiner
Name: Signature:
External Examiner
Name: Signature:

Dr. BhageshSankhe
(Director SASIMS)
College Seal
 DECLARATION

I hereby declare that Project Report submitted by me on the topic

” is a Bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma/ certificate or
published any time before.

Signature:

Name: RUPALI SUIRESH PATIL

Roll No: MB220097
Place: Saravali, Boisar (W) Date:
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, “PROF. (DEEPAK NAIR)

”, Assistant Prof, of MBA Department, for guiding me right from the Inception till
the successful Completion of the project, I sincerely acknowledge HIS for
extending HIS valuable guidance, support for literature, critical reviews of project
and the report and above all the moral support HE had provided me for this project.
I would also like to thank our Director Dr. Bhagesh Sankhe Sir, our HOD Kushal
Rajput sir and other staff members of MBA Department, for their help and
cooperation throughout my project.

(RUPALI SURESH PATIL)

 TABLE OF CONTENT

Chapter Title Page No.

No.

Declaration
Certificate from company
College Certificate
Acknowledgement
A Executive Summary
1 Introduction
2 Company profile
B Review of Literature
C Research Methodology
1 Problem Statement
2 Objective of Research
3 Type of Research
4 Sources of Data
4.1 Primary Data
4.2 Secondary Data
5 Instrument of Data Collection
6 Type of Sampling
7 Sample size
D Data analysis and interpretation
E Findings
F Limitations
G Recommendation
H Conclusion
I Bibiliography
J Annexure
EXECUTIVE SUMMARY
 Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and
above all gathering funds little by little to afford one’s dream. Home is one of the things that
everyone one wants to own. Home is a shelter to person where he rests and feel comfortable.
Many banks providing home loans whether commercial banks or financial institutions to the
people who want to had a home. The housing sector plays an important role in the economic
development of the country.
My project title is “ANALYSIS ON CUSTOMER SATISFACTION ON HOME
LOANS IN HERO HOUSING FINANCE WITH OTHER COMPETATIVE FINANCE”. I
selected this topic because The Indian housing finance industry has grown by leaps and bound in
few years.Total home loans disbursements by banks has risen which witnesses phenomenal
growth from last 5 years. There are greater number of borrowers of home loans.so by this study
we can find out satisfaction level of customers and problems faced by them in obtaining home
loans.
My objectives of study are-
• To make comparative study of Disbursement of home loans by commercial banks.
• To study the satisfaction level of customers about home loans.
• To study the problems faced by customers in obtaining the home loans.
For this I had taken four commercial Banks in Dehradun city namely HDFC Bank, PNB,
standard chartered Bank, SBI. It includes two public sector banks and two private sector banks.
The period of study is five years commencing from 2004-2008.
In the research methodology I had taken both primary data as well as secondary data , in the
primary data I had make a questionnaire to check the satisfaction level of customers about home
loans . In the secondary data I had studied the annual reports of RBI, commercial banks &
broachers of these banks.

For the first objective I had collected the information about the number of account
holders of specified banks, no of disbursement of home loans and recovery of these
loans.
After analysis I came to following findings
In the comparative study of specified banks it’s found that

 Punjab National Bank is having large number of customer base with high loan
disbursement and recovery of loans.
 The standard chartered bank showed less outstanding balance which presented
in percentage form in the diagram.

In case of second objective i.e. customer satisfaction level it is found that

 On the basis of data the HDFC is emerging at higher position a Compare to
Standard chartered bank and other public sector banks on Ground of
professionally managed services, reliable & transparent System, easy query
handling etc.

And problems face by customers in obtaining home loans are

 The customer does not had proper knowledge about different Home loan
products so they face problem in making a good deal.

 There are procedural delays, which harass the customers lot this will crush
the curtsy of customers to avail the home loan.
 The attitude of bank employees some times non cooperative and it creates a
hurdle in building trust and Confidence among customers about banks.
 The banks do not take into account the paying capacity of customers. So
some customers are not able to get amount of Loan needed by them.

Finally the whole research was carried out in a systematic way to reach at exact
results. The whole research and findings were based on the objectives some of the
limitation faced in collecting the data were Lack of time, lack of data, non-
response, reluctant attitude and illiteracy of respondents, which posed problems in
carrying out the research.

Some of the suggestions are

 To increase their customers, the banks should provide specialized services in
this sector. These services can be such as proper guidance to the Customer
 regarding the processing of loans, especially for the customers who are
illiterate.
 To satisfy their customers and for good dealings in future, the banks should
make prompt disbursement of loan amount to the customers so that they can
buy or construct their dream home as early as possible.

 The Banks should use easy procedure, or say, less lengthy procedure for the
sanctioning of loan to the customer. There should be less number of legal
formalities, in case this exists, then, these should be completed in less time.
This will be helpful in attracting more customers.

 Although the interest rates on specific norms, yet customers seek less
interest rate which can lower their cost of house. So banks should try to
lower their interest rates. Needles to say, that the bank which having lower
interest rates, have the maximum clients for loans.

 The public sector banks should improve their overall services to increase the
number of customers for home loans. They should recruit professionals to
provide such services and to satisfy the customers.

INTRODUCTION
 INTRODUCTION TO HOME LOANS-

Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all
gathering funds little by little to afford one’s dream.
Home is one of the things that everyone one wants to own. Home is a shelter to person
where he rests and feel comfortable. Many banks providing home loans whether commercial
banks or financial institutions to the people who want to have a home.
HHFL-Hero housing finance ltd Home Loan, India have been serving the people for around
three decades and providing various housing loan according to their varied needs at attractive &
reasonable interest rates. Owing to their wide network of financing, HHFL Housing Loans
provides services at your doorstep and helps you find a home as per your requirements.
Many banks are providing home loans at cheapest rate to attract consumers towards them. The
more customer friendly attitude of these banks, currently offer to consumers cheapest loan over
homes.
In view of acute housing shortage in the country, and keeping in mind the social –
economic role of commercial banks in the present times, the RBI advised banks to
HHFL also provides with Home Improvement Loan for internal and external repairs and other
structural improvements like painting, waterproofing, plumbing and electric works, tiling and
flooring, grills and aluminium windows. HHFL finances up to 85% of the cost of renovation
(100% for existing customers).
Current status is that HHFL reduced home loan rates by 50 basis points for all its existing
floating rate customers.

ADVANTAGES OF HOME LOANS:-

The various benefits of home loans arising to the customers are:-

1 Attractive Interest rates -:
The various banks offer attractive interest rates to boots and help their customers .many bank
provide .technical and financial assistance to customers for owning their dream home.

2. Help in owning a home –:

The home availed by person with the help of finance ,because the provide technical and
financial assistance to customer for owning their dream home .

3.door-step services-:
This door to step services are provide for enquiry stage to the final disbursement takes place such
services are beneficial for customer in present busy life.

4. Loan period-:

There banks which provide maximum loans tenure up to 15-20 years based on the
amount and the creditability of customers.

5. For accidental death insurance-:

Some banks provide free accidental death insurance with housing loan
which is very beneficial for the customers
DISADVANGES OF HOME LOAN-:

The main disadvantages in home loan are high lightned as below-:

(i) Delays in processing :-

Many times, there are huge delays in processing of providing home loans because various
formulations to be fulfilled in this process. Due to these delays customers feel mentally as well
as financially weak.

(ii) Fluctuating interest rates :-

Some banks give home loans at floating rates, which fluctuate at Different intervals due to
some reasons. These changes sometimes, may lead to increase in interest rate which will increase
the cost of home loans to the customers

(iii) High Cost:-

The public sector banks charge high processing cost for home loan’s sanctioning. They are
forced to pay serious charges at various stages to fulfill the requirements. Some consumers are
not able to pay such charges so such people could not avail the benefits of home loan schemes.

(iii) Problems in disbursement:-

 There are many problems in disbursement of home loan amount. There are some delay in
disbursement of loan amount to the customers due to legal formalities. This causes problems to
the customers.
These are limitations or disadvantages of home loans. But some times some banks charges high
installments to repay loan amount. Such also causes problem to customers. These limitations can
be removed by providing good and promote services to the customers.

DISBURSEMENT OF HOME LOANS :-

The every bank has its own procedure to disburse the loan amount among customers. After
choosing your right home, the next step is disbursement of home loans.
The loan amount is disbursed after identifying and selecting the property or home that are
purchased and submit the requisite legal documents. In the disbursement of home loans a clear
title and full verification to ensure that
a person has full rights on his house. The 230A clearance of seller and /or 371 clearances from
the appropriate authority of income tax is also needed.

1 Eligibility criteria:-

However, if one is a resident or non-resident individual who is planning to buy a house in India,
one can apply for a home loan. If a person has decided to buy a property in the near future,
he/she can apply for a loan before even selecting the property. Once the maximum amount to put
into the property has been decided, the Housing Finance Institutions or Banks will let the
customer know that how much he/she is eligible for and this helps to plan out the budget.

2. Conditions regarding co-applicants: -

All Housing Finance Institutions lay down conditions on who can be co-applicants. all co-owners
to the property. need to be co-applicants to the loan necessarily. These institutions do not permit
minors to join in as either co owner or as co-applicants because a minor is not eligible to enter
into a contact as per law. They do not permit even friends or relatives who are not blood relatives
to take a property jointly However, Income of co-applicants can be clubbed together to get
higher loan eligibility. Given below is a Table that throw light on acceptable relationship of a co-
applicant for clubbing of income.
Income Clubbing of Co-applicants: - It is as follows:
Combination Income Clubbing

Husband-Wife: - Income of husband-wife can be clubbed.

Parent - son: - It can be clubbed if only son is there but not if any male sibling exists.

Brother-Brother: - If they are currently staying together and intend to stay together in the new
property, then only, their income-can be clubbed for above purposes.

Brother-Sister: - No clubbing-is possible.

Sister-Sister: - No clubbing is possible.

Parent-Minor- Child: - No clubbing is possible in this case also.

3. General Terms and Conditions: - The following are the tems and conditions applicable to
the basic home loan product only. These are likely to change on the basis of the variations of the
home loan product. Typically, in general home loans, the follow in conditions are applicable:-

1) The loan to value ratio (LTV) cannot exceed a particular percentage. This differs from
product to product and from one Housing Finance Institutional Bank (HFI/B) to another. The
components of the value of the Property calculated here are covered under cost of property.

2) The maximum tenure of the bank is nominally fixed by HFI/Bs. However, HFls/Bs do
provide for different tenures with different terms and conditions.

3) The installment that one pay is normally restricted to about-50-per cent of the monthly-gross
income of the candidate.

4) The total monthly outflow towards all the loans that have been availed of, including the
current loan is normally restricted to 50% of the gross monthly income.

5) One will be eligible for a loan amount which is the lowest as per one's eligibility. This is
calculated as per the LTV norms, the HR, norms and the FOIR norms as mentioned above.
6) Most HFls/Bs consider the profile before they judge the repayment capacity. The judgement is
based on age, qualifications, number of dependents, employment details, employer credentials,
work experience, previous track record of repayment of any loans that have been availed of,
occupation, the industry to which the candidate's business relates to, if he/she is self-employed,
then the turnover in the last 3-4 years etc.

7) Some HFIs/Bs insists on guarantees from other individuals for the repayment of the loan. In
such cases, the customers has to arrange for the personal guarantee before the disbursement of
the loan takes place.

8) The property should be technically clear before the HFIs/Bs disburses the loans amount.
Most of institutions and banks have a teams of technical experts who visit the site to get a
technical report before the disbursement of loan. This is also beneficial to the customer as they
check for the technical quality and compliance with local laws.

9) The property should be legally clear before one can avail of a disbursement of the loan
amount. Housing-Finance Institutions /Banks (HFIs/Bs) take legal clearance from their lawyers
before the disbursement of amount. This proves to be beneficial to the customers as a legal
expert checks his/her documentation to ensure that he/she get a proper title to the property.

10) The disbursement of the loan is as per the progress of construction of the property unless it
is a ready property in which case the disbursement will be by one single cheque. PEMI or simple
interest on the loan amount disbursed to the customer in case of a part disbursement will be
payable by the customer on the disbursement.

11) The disbursement in most cases will be favoring the builder or the seller or the society or
the development authority as the case may be. The disbursement will come in the customer's
favour under special circumstances only.

12) The repayment of loan can be made either through deduction against salary, post-dated
cheques, standing instructions or Auto debit instructions to bank.

13) The principle is amortized either on annual reducing or monthly reducing basis as the case
may be
4.Charges applicable to home loans :-

The different kinds of charges applicable to home loans are discussed below:

a) Processing fees :-

First of all, comes the process fee. This is a charge that is levied by most HFls/Bs. This has
to be paid at the time of submission of the application form. It's normally charged as a
percentage of the loan amount sanctioned. Some HFls also charge a flat fee based on the loan
amount instead of a percentage. When a lower amount is sanctioned the excess fees paid at the
time of submission of the application is adjusted with the charges, which one make to the HFI/B
subsequently. Most HFls/Bs refund the processing fee if the loan application is rejected.

b) Administrative fees :-

This charge is again, normally, a percentage of the loan amount sanctioned. It is collected
by the HFI/B for the maintenance of customer's records, issuing interest certificates, legal
charges, technical charges, etc. though the tenure of the loan. It is payable by the customer when
he/she accepts the offer letter given by the HFI/B. This payment has to be made before the
availment of the disbursement. The mode of collection of these fees varies from one HFI/B to
another.

c) Rate of interest :-
 This is the rate of interest applicable on the loan amount through the tenure of the loan. It is
charged on the principal monthly reducing method. Most HFIs/Bs give an option to select either
a fixed rate of interest or a variable rate of interest.

d) Legal Charges:-

Some HFIs/Bs mainly Public Sector Banks levy legal charges that they incur on getting the
property documents vetted by their panel of lawyers.

e) Technical Charges:-

These charges are also levied by certain Housing Finance Institutions/Banks (HFIs/Bs) to
meet their expenses on the technical site visits to the customer's property. This ensures quality of
construction and construction within the norms as stipulated by the respective approval
authority.

f) Stamp duty and registration charges:-

HFIs that go in for a registered mortgage pass these charges on to the customer. These are
rather heavy in certain states depending on the laws laid down by the state where one buy a
property.

g) Personal Guarantee from Charges :-

Since the personal guarantee provided by the customer need to be stamped, these charges
are also recovered from the customer. They are charged to him by HFIs who demand for
Guarantees.
h) Cheque Bounce Charges :-

In case the cheques through which one make a payment to HFls get dishonored, some
minimum charges are levied by the HFI. The same are recovered from the customer.

(i) Delayed payment charges :-

HFls/Bs charge delayed payment charges from the customer if he/she delays the payment of
installments beyond the due date.

(j) Additional charges :-

These are levied as a percentage on the delayed payment charges by most HFls. They are
levied if one fail to pay the dues within the stipulated time after a delay has taken place.

(k) Incidental charge :-

This is payable in case the HFI/B sends a representative from their organization to collect
their outstanding dues. It is normally charged at a flat rate per visit. These charges are levied by
most HFls/Bs.

l) Prepayment Charges :-

This is a penalty charged by HFls/Bs from when one makes either a part prepayment or a
full repayment of the loan. This charge is levied only on lump sum payments and not on the
EMls that one pays. This charge is levied on the amount prepaid by one and not on the entire
outstanding principal. These charges are gradually being discount. So, these are the charges
levied by most Housing Finance Institutions and Banks while granting home loan to the
customers. Now, the decision on the repayment capacity shall be talked about as follows.
(v) Judgement regarding repayment capacity on the basis of income :-

To understand how the income of a customer is considered to arrive at his repayment

capacity, it is first necessary to classify customers into salaried and self employed individuals.

a) The income of the salaried individual is considered in the following manner:-

Gross monthly income as it appears on the salary slip

Less:- Any non regular variable income appearing on the salary slip (including overtime, etc.)

Add : - 50 per cent of the average variable income of the last six months.

Add: - Any fixed cash/voucher payments for which proof can be submitted.

Add: - 50 per cent of the average variable cash/voucher payments with proof like traveling
reimbursement etc.

Add :- HRA receivable if not being received already in the salary slip.

The above income calculated for the calculation of eligibility using IIR and FOIR norms. For
calculation of FOIR, the installments of all the loans that one has availed of currently

for which repayment is being made is taken into account as well. The lower of the two
eligibilities is considered as the maximum repayment capacity.
b) To consider income of Self-employed individuals we further classify them into Professionals
and non-professionals .

 Professionals:- Comprising doctors, chartered accountants, lawyers, architects, etc. For

calculation of eligibility of professional's income is computed by most HFIs using the
gross professional receipts instead of the Net profit as in the case of self-employed non-
professionals.

 Non-Professionals: - The income of non-professionals is normally calculated by HFIs in

the following manner: -

Average of the net profits of last 2 years as it appears in the profit and loss account (Returns need
to be filed for the same. They should be filed regularly before the due date is over).

Less: - Any income, which is unusual and non-recurring in nature like sale of some asset, etc
which affects profits substantially,

Add: - Any expense that is unusual and non-recurring in nature like repairs and maintenance that
has not been capitalized and effect profit adversely.

Add: - 50 per cent of the average depreciation of the last two years. The above income is
calculated for the calculation of eligibility using IIR and FOIR norms.

For calculation of FOIR the installments of all the loans that one has availed of currently for
which repayment is being made is taken into account and the eligibility is worked out. The lower
of the two eligibilities is considered as the
maximum repayment capacity.

(vi) Credit documentation:-

 Given below is the exhaustive list of credit documents- that need to be submitted for a
general home loan product. The documents vary from one HFI/B to another based on one's
employer, qualifications experience etc. the general requirements are as follows: -

(a) Income Documents : -

For salaried slips for the last three months appointments letter-salary certificate-
retainership agreement, if appointed as a consultant-Form 16 issued by the employer in
customer's name income document for self employee - last three years profit and loss account
statement duly attested by Chartered Accountants. Last three years Balance Sheets duly attested
by Chartered Accountant, last three years Income Tax Returns with computation chart duly filed
and certified by the Income Tax authorities.

b) Proof of employment : -
Identify card issued by the employer- Visiting card.

(c) Employer's details (In case of private limited companies) : -

Profile of employer on employers letterhead (to be signed by a senior person in the

organization) comprising

• Name of promoter/directors

• Background of promoters/directors

• Nature of business activity of your employer

• Number of employees

• List of branches/factories
 • List of suppliers

• List of clients/customers

• Turnover of employer

• Annual reports of the employer for the last two to three years.

(d) Proof of age (Anyone of the following) : -

Passport- Voter's ID card-PAN card-Ration card-Employer's identity card-School leaving

certificate-Birth certificate.

(e) Proof of residence (Anyone of the following) : -

Ration card-Passport- PAN card-Rent agreement, if the customer is staying currently on

rent- Bank Pass book-Allotment letter from the company if he/she is residing in company
quarters.

(f) Proof of name change (If applicable) : -

A copy of the official gazette –A copy of a newspaper advertisement publicizing the name
change-Marriage certificates.

(g) Proof if investment (If required) :-

 Bank statement for the last six months of all operating and salary accounts - Bank
statements for the last six months of all current accounts, if self-employed-any other photocopies
of investments held, if required by the HFC.

(vii) Legal documentation :-

Legal Documentation the typical legal documents that need to be submitted to the HFC
arc discussed here. Given below is a list of legal property documents that need to be submitted to
the HFC for mortgage of the property. The name and the list of documents vary from state to
state and also depend on the type of property being financed. A broad outline of the documents
required is given below.

a) Acceptance copy of the offer letter issued by the HFC/B.

b) Title documents of the property that include -sale agreement duly

Registered-Own contribution receipts - Allotment letter-Registration receipt-Land documents

indicating ownership, if applicable- Possession letter-Lease agreement, if applicable (Property
bought from a development authority) - Mortgage deed if the HFC opts for a registered
mortgage.

c) No Objection Certificate from the developer, society or development authority as applicable.

d) Personal Guarantees, if applicable.

e) In case of alternator additional security, documents for the same depending upon the security
details.
f) Post dated cheques for the EMls.

The above documents are only indicative in nature and do not cover the entire list. It may, also
be noted that in a resale case, the previous chain of agreement also need to be taken.

(viii) The tax benefits that are applicable to housing loans for individuals :-

Currently Tax Benefits to individuals are available only for the Home Loans and Home
Extension Loans products. The benefits available are covered under these sections.

Property Insurance :-

Is it compulsory to insure the property? some HFls insist on a mortgage redemption life
insurance policy. In this case the customer gets a benefit of an interest rate reduction. Though the
HFI may not insist, it is better to go in for property insurance to safeguard the asset against any
sort of damage or loss. The customer can select the tenure for the property insurance. The
insurance premium is changed up front. Most insurance companies provide for huge discounts
on the rate of premium for larger tenures. The premium charged currently is seventy-seven for
every lakh of property for a year. So a customer has to fulfill various conditions to be eligible for
availing home loan from a Housing Finance Institution/Bank After fulfilling these conditions, a
customer can avail loan at low interest rate i.e. fixed rate floating rate. A decision on whether
one should go in for a fixed-rate loan or a floating-rate loan now is a function of two factors i.e.
One's perception of where interest rates in the economy are headed and one' capacity to ride the
interest rate changes. A floating-rate loan let one take advantage of further falls in interest rates
but one stand to loose if interest rate, rise again. However this decision is based on the
perception of the consumer.
 COMPNAY PROFILE

HISTORY OF HERO HOUSING FINANCE LIMITED

Hero Housing Finance Limited (HHFL) is a subsidiary of Hero FinCorp, which is a part of the
Hero Group. The company was established in 2017 with the aim of providing housing finance to
customers in India.

HHFL began its operations by providing loans to individuals for the purchase, construction, and
renovation of their homes. It also offered home improvement loans, loan against property, and
balance transfer facilities to its customers. HHFL has a pan-India presence, with branches in
major cities across India.

The company's philosophy is to provide transparent, hassle-free, and customer-centric services. It

aims to provide customized home loan solutions to meet the unique requirements of its
customers. HHFL has a team of skilled professionals who are well-versed in the housing finance
industry, and they strive to provide the best services to their customers.

HHFL has received several awards for its excellent services, including the Best Home Loan
Provider in Affordable Housing by ASSOCHAM, the Best NBFC in Affordable Housing by
CREDAI, and the Best Emerging Housing Finance Company by INTACH, to name a few.

Overall, Hero Housing Finance Limited has become a prominent player in the Indian housing
finance industry and continues to grow by providing quality services to its customers.
 HERO HOUSING FINANCE PROFILE-

HERO HOUSING LTD a fairly new player in the Indian housing finance market. Hero FinCorp,
is a well-known financial services provider in India. As for Hero Housing Finance, they
specialize in providing affordable housing loans to the underserved segments of society. Their
focus is on supporting the government's efforts towards "Housing for All" by providing
financing solutions to the economically weaker sections of society, as well as to the middle-
income group. Overall, I see them as a socially responsible company that's trying to make a
meaningful impact on people's lives.Hero Housing Finance Limited is an unlisted public
company incorporated on 16 June, 2016. It is classified as a public limited company and is
located in South Delhi, Delhi. It's authorized share capital is INR 1,000.00 cr and the total paid-
up capital is INR 629.23 cr.

Hero Housing Finance Limited's operating revenues range is Under INR 1 cr for the financial
year ending on 31 March, 2018. It's EBITDA has decreased by -331.27 % over the previous
year. At the same time, it's book networth has decreased by -12.23 %. Other performance and
liquidity ratios are available here.

Description: The company provides financing services. It offers housing finance for
construction, renovation, and expansion, as well as renders loan against properties.

Products & Services: Housing finance for construction, renovation, and expansion, as well as
renders loan against properties.
Category: Financial services

The current status of Hero Housing Finance Limited is - Active.The last reported AGM (Annual
General Meeting) of Hero Housing Finance Limited, per our records, was held on 26 August,
2022.
Hero Housing Finance Limited has six directors - Renu Munjal, Nagesh Dinkar
Pinge, and others.
The Corporate Identification Number (CIN) of Hero Housing Finance Limited is
U65192DL2016PLC301481. The registered office of Hero Housing Finance Limited is at 9,
COMMUNITY CENTRE, BASANT LOK VASANT VIHAR NA, New Delhi, South Delhi,
Delhi.
 VISION AND MISSION & VALUES OF HERO HOUSING FINANCE

Courage

We go beyond the accepted norms of the industry and work towards helping loan-seekers
across the country, from all walks of life without discrimination.
Empathy

Home buying is one of the most crucial milestones in the life of most of our customers.
Naturally, it is an emotional process. We understand and respect this and treat every client
with utmost empathy, care and support

Passion of Excellence

We believe in delivering the best solution possible to every customer. We strive to deliver
delight throughout your journey with us.

Company Vision
Delivering the joy of being a proud homeowner.
 Company Mission
Continuously challenge ourselves to innovate and deliver a happy experience to customers
and employees
 BOARD OF DIRECTOR OF THE HERO HOUSING FINANCE LIMITED

Trust and Relating to people are the cornerstone of our business philosophy. In whatever we do,
we try to keep our promises, and with whoever we partner, we focus on the long term.
Irrespective of what we do, we follow these two simple rules.

Dr. Brijmohan Lall Munjal

An Inspiration Forever.
 Directors of HERO HOUSING FINANCE LIMITED

Director Identification Number Name Designation

RENU MUNJAL
00012870 Director

ABHIMANYU MUNJAL
02822641 Managing Director

NAGESH DINKAR PINGE

00062900 Director

APUL NAYYAR
01738973 Wholetime Director

RAHUL MUNJAL
00118339 Director

GEETA MATHUR
02139552 Director
 BOARD OF COMMITTE

Audit Committee-

Mr. Nagesh Dinkar Pinge - Chairman

Mrs. Geeta Mathur - Member

Mr. Abhimanyu Munjal - Member

Nomination & Remuneration Committee

Mr. Nagesh Dinkar Pinge - Chairman

Mrs. Geeta Mathur - Member

Mr. Rahul Munjal - Member

Risk Management Committee

Mrs. Renu Munjal - Chairperson

Mrs. Geeta Mathur - Member

Mr. Abhimanyu Munjal - Member

Mr. Rahul Munjal - Member

Mr. Nagesh Dinkar Pinge - Member

Mr. Apul Nayyar - Member

Mr. Dhoop Mittal - Member

Mr. Vivek Madan - Member

Mr. Rakesh Bansal - Member

ORGANIZATION STRUCUTURE OF HERO HOUSING FINANCE LIMITED

The organization structure of Hero Housing Finance Limited typically includes various
departments and levels of management. While I don't have specific information about Hero
Housing Finance Limited's structure, here is a common framework for an organization structure
in the housing finance sector:

1. Board of Directors: The Board of Directors is responsible for overall governance and
strategic decision-making. They provide guidance and direction to the company.

2. 2. Chief Executive Officer (CEO): The CEO is the top executive who is responsible for
overseeing the company's operations, implementing the board's decisions, and driving the
company's growth and profitability.

3. 3. Senior Management: The senior management team consists of executives who head
different departments and functions within the organization. This may include roles such
 as Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Risk Officer
(CRO), Chief Marketing Officer (CMO), and Chief Technology Officer (CTO

4 Departments and Functions: Hero Housing Finance Limited may have various
departments and functions, including but not limited to:

a. Sales and Business Development: This department focuses on acquiring new

customers, managing relationships with builders and developers, and expanding
the company's customer base.

B.Credit and Underwriting: This department assesses loan applications, determines

creditworthiness, and establishes loan terms and conditions.

a. Operations: The operations department manages loan processing, documentation,

and disbursement processes, ensuring efficient and timely services to customers.

b. Risk Management: This department is responsible for identifying, assessing, and

mitigating risks associated with lending, credit, and operations.

c. Finance and Accounts: The finance and accounts department handles financial
planning, budgeting, accounting, and financial reporting.

d. Human Resources: The HR department manages employee recruitment, training

and development, performance management, and employee relations.

e. Marketing and Communications: This department is responsible for brand

promotion, advertising, marketing campaigns, and customer communications.

f. IT and Technology: The IT and technology department manages the company's

technology infrastructure, software systems, data management, and digital
initiatives

g. Branch Network: Hero Housing Finance Limited may have a network of branches
across different locations. Each branch is typically headed by a branch manager
who oversees branch operations, customer service, and sales activities in their
respective regions.
 ROLE OF HERO HOUSING FINANCE IN INDIAN ECONOMY

Hero Housing Finance Limited plays a significant role in the Indian economy through its
contributions to the housing finance sector. Here are some key roles and contributions of
Hero Housing Finance Limited:

1. Boosting Construction and Real Estate Industry: Hero Housing Finance Limited's financing
activities support the construction and real estate industry by providing funds for home
purchases, construction, and renovation. This, in turn, stimulates demand for construction
materials, labor, and related services, thereby boosting economic activity in these sectors.
 2. Financial Inclusion: Hero Housing Finance Limited extends its services to individuals from
diverse income groups, including low and middle-income segments. By providing financial
solutions to underserved sections of society, the company promotes financial inclusion and
helps bridge the gap

SOCIAL CONTRIBUTION OF HERO HOUSING FINANCE LIMITED

Hero Housing Finance Limited has a strong commitment to making social contributions
and giving back to society. Here are some examples of the social contributions made by
Hero Housing Finance Limited:

1. Affordable Housing Initiatives: Hero Housing Finance Limited focuses on providing

affordable housing finance solutions to individuals and families, particularly in the low
and middle-income segments. By making housing finance accessible and affordable, the
company contributes to the government's vision of "Housing for All" and helps address
the housing needs of underserved sections of society

2. Community Development Programs: Hero Housing Finance Limited

3. actively participates in community development programs. The company engages in
initiatives such as skill development programs, vocational training, and financial literacy
campaigns to empower individuals and enhance their employability.

4. Corporate Social Responsibility (CSR) Initiatives: Hero Housing Finance Limited

undertakes various CSR initiatives to contribute to social welfare. These initiatives may
include supporting education by providing scholarships, infrastructure development of
schools, and promoting digital literacy. The company may also participate in healthcare
programs, environmental sustainability initiatives, and disaster relief efforts

5. . Employee Volunteering: Hero Housing Finance Limited encourages and supports

employee volunteering activities. Employees are given opportunities to engage in
community service and contribute their time and skills to various social causes. This not
only benefits the communities but also fosters a sense of social responsibility among
employees.

6. . Environmental Sustainability: Hero Housing Finance Limited promotes environmental

sustainability by adopting eco-friendly practices within its operations. The company may
implement energy-efficient measures, waste management initiatives, and promote
awareness of environmental conservation among employees and customers

7. Specific social contributions may vary over time and depend on the company's initiatives
and priorities. For the most accurate and up-to-date information about Hero Housing
Finance Limited's social contributions, it is recommended to refer to their official website
or CSR reports
 Literature Review

After going through pervious studies of Home loans I came to conclude that-• There is growth of
home loans after 2001.
• Home loans have an inverse relation with interest rates i.e. when interest rate low the demand
of home loans increase. (Ojha 1987)
• People are going more towards home loans than private mortgage
i n s u r a n c e .(Berstain 2008)
• Government taking various steps to encourage people to go toward home loans .
(Haavio, Kauppi 2000)
• Growth of home loans are due to increase of living standard of people,
shiftingfrom joint family to nuclear family .(Lacourr, Micheal 2007)
• There are some problems also attach with these home loans such as time i.e filling of
application of loan to closing ,people have their own specified needs from these
home loans which are not fulfilling. (Lacour Micheal 2006).
• SBI provide a very low interest rate on home loans as compared to other banks.
(SBI May 2000

Berstain David (2009)

examined in his study taken from 2001 to 2008 that in this period there is increase use of
home loans as compared to private mortgage insurance(PMI).he have divided his
study into four sections. Section 1 describes why people are going more for home loans
than PMI. the main reason for this that now home loans market provide Piggybank loans for
those people who don’t have 20% of down payment. Section2 tells the factors responsible for the
growth of home loans and the risks on shifting toward home equity market without any PMI
coverage. PMI can protect lenders from most losses u p t o 8 0 % o f L T V a n d t h e
a b s e n c e o f P M I w i l l r e s u l t i n c o n s i d e r a b l e l o s s e s i n a n environment.
Section 3 tells the measures in changes of type of loans. For this he have taken the
data from the 2001 and 2007 AHS a joint project by HUD and Census The results of this analysis
presented in Table One reveal a sharp increase in the Prevalence of owner-occupied properties
with multiple mortgages among properties with Newly originated
firstm o r t g a g e s . S e c t i o n 4 d e s c r i b e t h e F i n a n c i a l s t a t u s o f s i n g l e - l i e n a n d
multiple-lienhouseholds and for this he have taken the survey of consumer
f i n a n c e a n d s h o w t h a t financial position is more weaker in multiple loans than the single
loans

Vandell, Kerry D (2008)

analysis the sharp rise and than suddenly drop down home prices f r o m t h e p e r i o d 1 9 9 8 -
2008. changes in prices are for the reasons as such economic fundamentals
, the problem was not sub prime lending per se, but the Fed‘s dramatic
reductions, then increases in interest rates during the early- mid-2000 , the housing ―boom was
concentrated in those markets with significant supply-side restrictions, which tend to be more
price-volatile; he problem was not in the excess supply of credit in aggregate, or the
increase in sub prime per se, but rather in the increased or reduced presence of certain other
mortgage products

La courr, Micheal (2007

) analysis in his study the factors affected the increase in the level of Annual percentages rates
(APR) spread reporting during 2005 over 2004. the three
mainf a c t o r s a r e c h a n g e s i n l e n d e r b u s i n e s s p r a c t i c e s ; ( 2 ) c h a n g e s i n
t h e r i s k p r o f i l e o f borrowers; and (3) changes in the yield curve environment.
The result show that after controlling for the mix of loan types, credit risk factors, and the
yield curve, there was nostatistically significant increase in reportable volume for loans
originated directly bylenders during 2005, though indirect, wholesale originations
did significantly increase .Finally, given a model of the factors affecting results for 2004-
2005, we predict that 2006results will continue to show an increase in the percentage of
loans that are higher priced when final numbers are released in September 2007

Dr. Rangarajan C. (2001)

said that the financial system of India built a vast network of financial institutions and
markets over times and the sector is dominated by banking sector which accounts for about two-
third of the assets of organized financial sector.

Haavio, Kauppi (2000)

stated that countries where a large proportion of the population lives in owner –
occupied housing are experiencing higher unemployment rates. Than countries where
the majority of people live in private rental housing, which might suggest that rental housing
enhances labour mobility. In this paper, they develop a simple inter temporal two
region model that allow us to compare owner occupied housing markets to rental
markets and to analyze how these alternative arrangements allocate people in space and time.
announced that it will offer loans for Rs. 2-10 lakh at 12.5 percent the lowest rate offered by
any housing finance provider, big brother SBI has taken the rate war in the home
loans category to new heights. This is because, apart from the low rate, the interest
on these loans is calculated on principal, which is reduced every month
u n l i k e o t h e r housing finance companies which calculate interest on annually reducing basis
Ojha (1987)
in his paper "modern international caparison of productivity and P r o f i t a b i l i t y o f p u b i c
s e c t o r b a n k s o f I n d i a " m a k i n g C o m p a r i s o n o n t h e b a s i s o f p e r employee
indicators and taking examples of state bank group and Punjab National
bank n o t e d t h a t I n d i a n b a n k s a r e t h e l o w e s t i n a l l a c c o u n t s . H o w e v e r
s u c h i n t e r n a t i o n a l comparison will not be fair for numbers of reasons.

Godse (1983)
in his essay, “looking a fresh at banking productivity” observe tha
t productivity aspect is only
a t t h e C o n c e p t u a l i z a t i o n s t a g e i n b a n k i n g i n d u s t r y . H e suggested
improvement in productivity and procedures, costing of operations and capital
expenditure etc.

Fanning (1982
) , w h i l e e x a m i n i n g b a n k p r o d u c t i v i t y o f B r i t i s h b a n k s o b s e r v e d t h a t although
the productivity of the UK clearing banks is improving, they are still heavily over manned as
compared with similar banks else where.

Kulkarni (1979)
in his study “Development responsibility and profitability of banks” stated that while
considering banks costs and profits, social benefits arising out of it cannot

Varde and Singh (1979)

in a study "profitability of commercial banks" over 15 years gave consideration to two types
of factors that effects interest rates levels i.e. internal factors (including operational and
managerial efficiency of individual basis).

Banking Commission (1972

) reviewed bank operating methods and procedures and made recommendations for improving
and modernizing these, particularly relating to customers services, credit procedure and internal
control systems. It observed that present methods of working out branch profitability are not
appropriate and an integrated costing and financial reporting system is needed.

Department of Banking operations and development, RBI

: Bombay observed that ther a p i d e x p a n s i o n o f b a n k s a c t i v i t i e s s i n c e 1 9 7 0 c a l l e d
f o r a p h a s e o f c o n s o l i d a t i o n s t o improve the quality of banks operational efficiency,
productivity and customer services

Research Methodology

Research methodology is a way to systematically show the research problem. It may be

understood as a science of studying how research is done scientifically. It is necessary for the
researcher to know not only the research methods but also the methodology.
This Section includes the methodology which includes. The research design, objectives of study,
scope of study along with research methodology and limitations of study etc.
 To know the Customers perceptions about home loans of HERO HOUSING
 To study the satisfaction level of customers about home loans.

 To study the problems faced by customers in obtaining the home loans.

 To make comparative study of disbursement of home loans by commercial banks, the study
shall be conducted in the manner enumerated below-

RESEARCH DESIGN:-
This project is based on exploratory study as well descriptive study. It
w a s a n exploratory study when the customer satisfaction level was studied to suggest new
methods to improve the services of HERO HOUSINGFINANCE in providing home
loans and it was descriptive study when detailed study was made for comparison of
disbursement of home loans by commercial banks.

RESEARCH OBJECTIVE-

There is no strongest foundation for your dream home, than a cheap loan. Home loans have
become that stronger foundations for people who want to own a home. The main objectives of
the study are as follows :-

1) The main objective of this study is to know the Customers perceptions about home loans of
HERO HOUSING FINANCE LIMITED

2) To analyze the history of HERO HOUSING FINANCE

3) Generating good business to the company by promoting and selling the products of HERO

HOUSING FINANCE

4) To know the ideas of customers about home loan products and services.

5) To make comparative study of Disbursement of home loans by other finance and commercial
banks
6) Fixing the appointments with the customers.

7) To study the satisfaction level of customers about home loans.

8) To study the problems faced by customers in obtaining the home loans.

9) Visiting the customers and closing the deal.

10) To learn about various aspect of HHFL home loan ltd.

PURPOSE OF THE STUDY

The main purpose of this study is to attain the knowledge of the processing system of home
loans. the main purpose of the study are as follows :-

 To know the ideas of customers about home loan products and services.

 To study the satisfaction level of customers about home loans.

 To study the problems faced by customers in obtaining the home loans.

 To learn about various aspect of HHFL home loan ltd.

 SCOPE OF THE STUDY

The Indian housing finance industry has grown by leaps and bound in few years. total home
loans disbursements by banks has risen which witnesses phenomenal growth from last 5 years.
There are greater number of borrowers of home loans. so by this study we can find out
satisfaction level of customers and problems faced by them in obtaining home.

RESEARCH DESIGN:-

This project is based on exploratory study as well descriptive study. It

w a s a n exploratory study when the customer satisfaction level was studied to suggest new
methods to improve the services of Hero Housing finance in providing home loans
and it was descriptive study when detailed study was made for comparison of
disbursement of home loans by other finance
RESEARCH PROBLEM

1. The research is that the income level affected to borrower to take a loan.

2. Age is factor to affected to borrower to take loan

3.cibil score is most important thing below 650 cibil is affected to borrower to take a
loan.in hero housing finance

4.Proper property and legal property required for take home Loan

SOURCES OF DATA-

fulfill the information need of the study. The data is collected from primary as well as secondary
sources-

A- PRIMARY SOURCE:-

I decided primary data collection method because our study nature does not permit to
apply observational method.
In survey approach we had selected a questionnaire method for taking a customer view
because it is feasible from the point of view of our subject & survey purpose. We conducted
100 sample of survey in our project to judge the satisfaction level of customers which took
home loans.
• Sample size;-

For the questionnaire I have taken the sample size of 100 customers of HERO HOUSING
FINANCE

B- SECONDARY SOURCE:-

It was collected from internal sources. The secondary data was collected on the basis of
Internet,browsers organizational file, official records, news papers, magazines,
management books, preserved information in the company's database and website of the
company.

SAMPLING -

Sampling refers to the method of selecting a sample from a given universe with a view to draw
conclusions about that universe. A sample is a representative of the universe selected for study.

SAMPLE SIZE:-

Large sample gives reliable result than small sample. However, it is not feasible to target entire
population or even a substantial portion to achieve a reliable result. So, in this aspect selecting
the sample to study is known as sample size. Hence, for my project my sample size was 100.
The Sample Size consists of both the Professional and Business class people. IT peoples,
Doctors, Jewelers, Timber Merchants & Real estate Agents are taken as Sample.
SAMPLING TECHNIQUE:-

Random sampling technique was used in the survey conducted.

TOOLS OF ANALYSIS:-

Data has been presented with the help of bar graph, pie charts, line graphs etc.

PLAN OF ANALYSIS:-

Tables were used for the analysis of the collected data. The data is also neatly presented with the
help of statistical tools such as graphs and pie charts. Percentages and averages have also been
used to represent data clearly and effectively.

DATA COLLECTION INSTRUMENT DEVELOPMENT:-

The mode of collection of data will be based on Survey Method and Field Activity.
Primary data collection will base on personal interview. I have prepared the questionnaire
according to the necessity of the data to be collected.
COMPARATIVE STUDY OF DISBURSEMENT OF HOME LOANS BY
OTHER FINANCE COMPANY

Disbursement of Home loans by different Finance:-

 home loan holders of HHFL and other Finance

35

30
CURRENT RATE OF INTREST
25

percentage of 20
home loan holdes RATE OF
15
FINANCE COMPNY INTREST
10

HERO
0 HOUSING
FINANCE
hhfl 9.5%
shubham fin -TO- 15%
fullerton
poonawala fi-
nance

SHUBHAM FINANCE 9.90%-16% Interpretation:-

FULLERTON 10%-TO-
The figure FINANCE 10.50% reveals that Hero Housing
Finance is having large number of home
loan POONAWALA accountholders. So it ranks
first among FINANCE 11%TO-22% other finance. The finance
have shown increase in their customers base from 2020-2022 But Hero Housing Finance
comes as market leader in the home loan cases. as campare to this mention finance company

INTREST RATE OFFER BY VARIOUS FINANCE COMPANY

In many finance they offer different rate of interest as per their rules and regulations .hero
housing finance gives affordable roi with various attractive product and scheme.

ANALYSIS & INTERPRETATION

The analysis is based on the responses given by customers through questionnaires.

 AGE GROUP OF SURVEYED RESPONDENT

Age group No. of Respondents

18 - 25 years 127

26 - 35 years 67

36 - 49 years 46

50 - 60 years 24

More than 60 years 6

Analysis:- From the chart above we find that 47% of the respondents fall in the age group of 18
– 25 years, 25% fall in the age group of 26 – 35 years and 17% fall in the age group of 36 – 49
years.
Therefore most of the respondents are relatively young (below 26 years of ge). and 6%
respondent’s age are 50-60 years and 2% respondent’s age are 60 to above years.
 9% 2%

18 - 25 years
17%
26 - 35 years
,47% 36 - 49 years
50 - 60 years
More than 60 years

25%

GENDER CLASSIFICATION OF SURVEYED RESPONDENTS

Sr. No. Category No. of Respondents Percentage

1 Married 140 70%

2 Unmarried 60 30%
 Total 200 100%

Base.200 respondents

Marital Status

Unmarried; No.
of Respondents;
60; 30%
Married
Unmarried

Married; No. of
Respondents;
140; 70%

Interpretation
From the table and graph above it can be seen that
 70% respondent’s are married.
 30% respondent’s are unmarried.
 Educational qualification of respondent’s

Sr. No. Category No. of Respondents Percentage

1 Under graduate 50 25%

2 Graduate 80 40%

3 Post graduate 70 35%

Total 200 100%

Base 200 respondents

 Educational Qualification of Respondents

Post graduate; Under graduate;

No. of Re- No. of Respon-
spondents; 70; dents; 50; 25%
35%
Under graduate
Graduate
Post graduate

Graduate; No. of Re-

spondents; 80; 40%

Interpretation
From the table and graph above it can be seen that
 25% respondent’s are under graduate.
 40% respondent’s are Graduate.
 35% respondents are Post graduate.

Number Of year’s Are You in PALGHAR

Sr. No. Category No. of Respondents Percentage

1 Less than five years 78 39%

2 More than five years 122 61%

Total 200 100%

Base 200 respondents

Staying years in PALGHAR

39%

less than
five years

61% more than

five years

CUSTOMER PROFILE OF SURVEYED RESPONDENTS

Customer profile No. of respondents

Student 7
 Housewife 5

Working Professional 116

Business 49

Self Employed 24

Government service employee 24

11% student
11% 3%
2% housewife
22%
working pro-
fessional

business

52% self-empoyed

government
service

Interpretation

From the table and graph above it can be seen that:-

51% of the respondents are working professionals, 22% are into business and 11% are self-
employed, 11% of the respondent’s are government service employee and 3% of the respondents
are student and 2% of the respondents are house-wife.

ANNUAL HOUSE HOLD INCOME?

Sr. No. Category No. of Respondents Percentage

 1 Less than 2 lacs 98 49%

2 Between 2 to 5 lacs 62 31%

3 Between 5to 8lacs 30 15%

4 More than 8 lacs 10 5%

Total 200 100%

Base 200 respondents

Annual Household Income

More than 8 lacs; No. of Respondents;

Between 5to 8lacs; No.10; 5%
of Respondents; 30; 15%

Less
Less than 2 lacs; No. of than 2 lacs
Respondents; 98; 49%

Between 2 to 5 lacs

Between 5to 8lacs

Between 2 to 5 lacs; No.
of Respondents; 62; 31%
More than 8 lacs

Interpretation
From the table and graph above it can be seen that
 49% respondent’s annual household income is less than 2 lacs.
 31% respondent’s annual household income is between 2 to 5 lacs.

 15% respondent’s annual household income is between 5 to 8 lacs.

 5% respondent’s annual household income is more than 8 lacs.

Do you know about Housing Finance limited?

Category No. of Respondents

Yes 164

No 16
 9%

YES
NO

91%

Interpretation:-
From the table and graph above it can be seen that
 91% respondent’s are known about HHFL
 9% respondent’s are not known about HHFL
 Reasons for getting the home financed

Sr.No. Number of Reasons Percentage

a. Non-availability of funds 36

b. Reluctancy to pay cash in one go 35

c. Tax benefit 24

d. Any other 5

40
35
30
percentage 25
of
customers20
15
10
5
0
non-availabil- reluctancy tax benefit any other
ity of funds

Interpretation :-
 To interpret the response of the questions, the figures shows that most of the customers
find the problem in availability of funds i.e. 36% and very less number of customers found
problem in paying cash in one go is 35%, customers get housing loan for tax benefits is 24%.
This was the expected response because a large number of people find a problem of availability
of funds which works as an obstacle in owning a dream home.
In today's life, people hardly earn both means and ends of life and they don't have much
of money to buy a home or a land to construct house because of cost of property. So, they take
the advantage of home loans provided by different banks at different terms feasible to the
customers. There are very less number of people, who don't own home even when they have
sufficient funds and they take the advantage of home loans because they don't want to pay huge
cash in one go.

From where you have got your home financed?

Name of Banks / company Percentage of customers

HERO HOUSING 55
FINANCE

FULLERTON FINANCE 20

SHUBHAM FINANCE 07

POONAWALA FINANCE 15

Any other 03

To understand the response more effective and closely, it has been showed diagrammatically as
follows :-
 60

50

40
percentage of cus-
tomers 30

20

10

0
HHFL fullerton shubham poonawala any other

Interpretation:-
The analysis showed that a large number of customers prefer HERO HOUSING FINANCE as
compared to others. The data shows that 7% of customers took loan from SHUBHAM
FINANCE, 20% of customers from FULLERTON FINANCE, 15% Customers took loan from
POONAWALA FINANCE 55% of customers took loan from HERO HOUSING FINANCE and
a 3% of customers fall under the category of 'Any other' FINANCE The data shows that most
of people prefer HHFL compared to other mention this finance.
 Sources of information about Home Loans Scheme

Sources of information Percentage of customers

Newspapers 49

Magazines 16

Banners/Hoardings/Pamphlets 11

Word of mouth 20

Any other source 04

 4%
20%
49% newspaper
magazines
11%
16% banners
word of mouth
any other
source

. Interpretation:-
The data shows that around 20% of customers got information from source of 'Word of Mouth'
which includes information from friends, relatives, colleagues etc. 49% of customers got
information from newspapers, only 16% of customers from magazines and 4% of customers got
information about home loans schemes under 'Any other source' and 11% through Banners/
Hoardings/Pamphlets .
 Opinion about the services of HERO HOUSING FINANCE

Services of HERO Percentage of customers agreeing

HOUSING FINANCE
Strongly Agree Neutral Disagree Strongly
agree disagree

a. Professionally 86% 10% 4% - -

managed

b. Reliable & 67% 33% - - -

transparent

c. Socially responsible 75% 10% 15% 4% -

d. Customer care 20% 68% 8% - -

e. Query handling 20% 76% 4% - -

 Opinion of customers about HHFL

90
80
70
60
50 strongly agree
percentage of
customers 40 agree
neutral
30 disagree
20 strongly disagree

10
0
a b c
factor d e

Interpretation:-

Customers from HERO HOUSING FINANCE are quite satisfied from their services like
query handling and customers social responsibility of FINANCE towards customers and
professionally managed services. They don't give so good response to reliability and
transparency services of banks. So, customer's satisfaction level toward HERO
HOUSINGFINANCE services is lightly satisfied.
 PROBLEMS FACED BY CUSTOMERS IN AVAILING HOME LOANS

There are everything in the world has good or bad points. No doubt banking /Finance
industry/ company has made many efforts to enhance the customer satisfaction but customer still
faced some problems. These are high lightened as below:

1) The customer does not have proper knowledge about different home loan products so
they face problem in making a good deal.

2) There are procedural delays, which harass the customers lot. This will crush the curtsy
of customers to avail the home loan.

3) The attitude of bank employees some times non cooperative and it creates a hurdle in
building trust and Confidence among customers about banks.

4) The banks do not take into account the paying capacity of customers. So some
customers are not able to get amount of loan needed by them.

So above discussed are the problems which faced by customers while availing home loans.
 FINDINGS

1. Hero Housing finance having good brand image in the minds of customers.
2. Majority of the people got loans from Hero Housing finance
3. Most of the customers are not aware of the products of Hero Housing finance home loans
4. Some of the customer’s felt that the interest rates are some what high
5. Some of the customer not having good faith on other finance like Shubham
finance ,poonawala finance etc.
6. Most of the people are directly go to Hero Housing finance to apply a home loan
7. Some of the customer of Hero Housing finance already benefited through Hero Housing
finance loan products and services
8. Customer awareness is medium about Hero Housing finance products.
9. Hero Housing finance providing good services to their customers.
 RECOMMENDATIONS AND SUGGESTIONS

These suggestions have been discussed as follows:-

1) To increase their customers, the HERO HOUSINGFINANCE should provide

specialized services in this sector. These services can be such as proper guidance to the customer
regarding the processing of loans, especially for the customers who are illiterate.

2) To satisfy their customers and for good dealings in future, the HERO
HOUSINGFINANCE should make prompt disbursement of loan amount to the customers so that
they can buy or construct their dream home as early as possible.

3) The HERO HOUSINGFINANCE should use easy procedure, or say, less lengthy
procedure for the sanctioning of loan to the customer. There should be less number of legal
formalities, in case this exists, then, these should be completed in less time. This will be helpful
in attracting more customers.

4) Although the interest rates on specific norms, yet customers seek less interest rate
which can lower their cost of house. So banks should try to lower their interest rates. Needles to
say, that the bank which is having lower interest rates, have the maximum clients for loans.

5) HERO HOUSINGFINANCE provide loan according to the repaying capacity of the

customer and his/her eligibility. Due to which, some customers are not able to get amount of
loan needed by them. So, the HERO HOUSINGFINANCE should soften their norms regarding
the loan amount.

6) Create awareness: The Company has to take care of awareness creation about the
products and services among the customers.

7) Charges: The Company has to reduce the mortality and administration charges.
 8) The company has to reduce their interest rates on home loan products and services.

9) The company has to identify the potential customers.

10) Company should consider the present competition and should act according to the
customer needs.

11) The HERO HOUSING FINANCE should try to provide proper knowledge regarding
their home loan schemes, even to people who don't know about such schemes and their benefits
especially in rural areas. So they should provide knowledge to the ignorant customers, especially
in rural areas and backward urban area So, above are the main suggestions
 CONCLUSION

1) In my study we came to know that many peoples are interested to take a home loan from
HERO HOUSING FINANCE to construct their homes.

2) Home loans have long period when compare to other personal loans and other loans. So
peoples are confused to take a home loan.

3) Even though the interest rates are high peoples are willing to take a loan from HERO
HOUSING FINANCE due to some reasons.

4) The interest rates also some what high when compare to other banks and finance

5) The loan sanction process is low when compare to other banks.

6) For disbursement process is also it will take low time when compare to other banks

Finally the whole research was carried out in a systematic way to reach at exact results. The
whole research and findings were based on the objectives. However, the study had some
limitations also such as lack of time, lack of data, non-response, reluctant attitude and illiteracy
of respondents, which posed problems in carrying out the research. But proper attention was
made to Carry out research in proper way and to make accurate conclusion for the HERO
HOUSING FINANCE which may beneficial for banks to enhance their customer base
 BIBLIOGRAPHY

REFERENCES
REVIEWS

 Berstain David(2008), “Home equity loans and private mortgage insurance: Recent
Trends & Potential Implications”, Vol.3 No.2, August 2008, Pp. 41 - 53
 Dr. Rangarajan C. (2001), “A Simple Error Correction Model of House Price”.Journal of
Housing Economics Vol. 4, No. 3,pp 27 – 34
 Fanning (1982), “The Demand for Home Mortgage Debt” Journal of Urban Economics,
Vol 11 No 2, November, pp. 770-774
 Godse (1983), “looking a fresh at banking productivity”, Journal of Real Estate
Literature, Vol. No. 13, Page 141 to 164.
 Haavio, Kauppi(2000) , “Residential Lending to Low-Income and Minority Families:
Evidence from the 1992 HMDA Data," Federal Reserve Bulletin,Vol no 80(2), December
2000 Pp-79-108
 Kulkarni (1979), “Development responsibility and profitability of banks” Journal of
Economic Perspectives, Vol 9 No 1 ,pp. 26-32.
 La courr, Micheal(2007) , “Economic Factors Affecting Home Mortgage Disclosure Act
Reporting” The American Real Estate and Urban Economics Association, Vol.2 No. 2
May 18, 2007, Pp. 45 -58
 La cour Micheal(2006) , “The Home Purchase Mortgage Preferences Of Lowand-
Moderate Income Households”, Forthcoming in Real Estate Economics , Vol 18, No 4 ,
December 20, 2006, p. 585.
 Vandell ,kerry D(2008), “Subprime lending and housing bubble:tail wag
dog?”International Journal of Bank Marketing, vol 21,no 2, pp. 53-7
 Brochure on home loans from HDFC LTD

NEWS PAPERS

 The Times of India

 Financial Express

WEB PAGES:-
https://www.herohousingfinance.com/
https://www.herohousingfinance.com/
 QUESTIONNAIRE

Dear Sir/ madam

I am Rupali doing MBA from mumbai University. I m preparing a project on “ANALYSIS ON

CUSTOMER SATISFACTION ON HOME LOANS IN HERO HOUSING FINANCE
WITH OTHER COMPETATIVE FINANCE”.. For this I have designed a Questionniare to
know your views and satisfaction level of home loans .please fill the given as per your thinking
and experiences with this. I will be thankful to you for this.

Name:-RUPALI SURESH PATIL ……

…………………………………………………………………..

Address:-…PALGHAR,WEST,401404
………………………………………………………………..

Contact No :-8446496581……( O)……… ……… (M)………………………

City:- PALGHAR ………...............Pin:-401404…………………

.State: ………………MAHARASHTRA……….

1. Name: ____________________

2. Age:
(a) Below 30 (b) 30-40 (c) 40-50 (d) Above 50
3. Occupation:
(a) Professional (b) Self-employed (c) Salaried
(e) Others

4. Which income group do you belong? (Per annum)

(a) Below 2 lakhs (b) 2-4 lakhs
(c) 4-6 lakhs (d) 6 lakhs and above

5. Have you ever taken Home loan before?

(a) Yes (b) No

6. If yes, from which Bank/company?

(a) ICICI (b) HDFC (c) UTI
(d) Centurion bank of Punjab (e) others

7. Are you Satisfied with the services provided? (on 5 point scale)
_____________________________________________________________________

Highly dissatisfied Neutral satisfied highly

dissatisfied dissatisfied

8. While taking loan, which things attract you the most?

(a) Interest rates (b) Service Provided
 (c) Pay back period (d) Schemes
(d) Others

9. Even if the Interest rate is high for the personal loans, you will go for it?
(a) Yes (b) No

10. How much loan amount you took?

(a) Less than 1 lakhs (b) 1-5 lakhs
(c) 5-10 lakhs (d) more than 10 lakhs

11. Even if the Interest rate is high for the Home loans, you will go for it?
(a) Yes (b) No

12. Do you own a home…?

Yes [ ] No [ ]
If Yes, then, Proceed………

13. Have you get it financed?

Yes [ ] No [ ]
If Yes, then, proceed……..

14. What is reason for getting it financed?

1. Non availability of funds [ ]
2. Reluctance to pay cash in on go [ ]
 3. Tax benefit [ ]
4. Any other (please specify) .........................................

15. From which of the following banks/ company you have got if financed?
Any other (please specify) ...........................................

16. From where have you got information about home loans scheme?
(Check list)…………………..
Newspapers [ ] Magazines [ ]
Hoarding/banners [ ] Word of mouth [ ]
Any other (please specify)...........................................

17. What problems did you face while getting home loans?
a. Lack of knowledge
b. Procedural delays and non cooperation
c. Any other (please specify) ........................................

18. Did you face any problem after sanction of loan?

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

19. What suggestions do you want to give for improvements in home loans Scheme?

______________________________________________________________________
______________________________________________________________________

______________________________________________________________________

THANKS