customer satisfaction towards lic housing financ
DESCRIPTION
consumer behaviourTRANSCRIPT
CUSTOMER SATISFACTION TOWARDS LIC HOUSING
FINANCE WITH SPECIAL REFERENCE TO COIMBATORE
Project Report Submitted to Bharathiar University Partial fulfillment of the Requirements for the Award of the Degree of
MASTER OF COMMERCE
Submitted by
GOWTHAM.P
(Reg No.103AA0129)
Under the Guidance of
Mr.,L. RAJKUMAR M.com., M.PHIL.,
Lecturer, Department of Commerce & IB
DEPARTMENT OF COMMERCE & IB
VLB JANAKIAMMAL COLLEGE OF ARTS & SCIENCE
(AUTONOMOUS)
ACCREDITED TO NAAC ISO 9001:2008 CERTIFIED
KOVAIPUDUR, COIMBATORE-641042.
MARCH 2012
VLB JANAKIAMMAL COLLEGE OF ARTS & SCIENCE
(AUTONOMOUS)
ACCREDITED TO NAAC ISO 9001:2008 CERTIFIED
KOVAIPUDUR, COIMBATORE-641042.
CERTIFICATE
This is to certify that the project entitled “CUSTOMER SATISFACTION TOWARD
LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE” is a
record of original research work done by GOWTHAM.P (Reg
No.103AA0129) a student of M.com, V.L.B.Janakiammal College of arts and
science, Coimbatore-641 042. During 2011-2012 in the partial fulfillment of the
requirements for the award of the degree of MASTER OF COMMERCE
submitted for Bharathiar University, Coimbatore-641 046.
_______________________ _________________________
GUIDE Head of the Department
Viva-voce examination held on _________________________
________________________ ________________________
Internal Examiner External Examiner
DECLARATION
I hereby declare that the project work entitled “CUSTOMER SATISFACTION TOWARD LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO COIMBATORE” is submitted to Bharathiar University, Coimbatore ,in partial fulfillment of the requirement of the award of the degree of MASTER OF COMMERCE is a record of original project work done by me during the period of study from 2011-2012 in Department of Commerce & IB, V.L.B.Janakiammal College of arts and science, Coimbatore under the supervision Mr., RAJKUMAR M.com., M.PHIL., Lecturer, Department of Commerce & IB.
PLACE : COIMBATORE GOWTHAM.P
DATE : (Reg.No: 103AA0129)
ACKNOWLEDGEMENT
“Motivation is the driving force behind every successful venture”. With regard to the
completion of the project, I wish to acknowledge the following people who were the sources of
motivation behind the successful execution of the report.
I express my heartfelt thanks to the God for showing his grace and blessing on me as a
result of which this training has been completed successfully in time.
I wish to express my sincere thanks and gratitude to our Secretary Dr. K.Palaniappan,
M.Sc., Ph.D., VLB Janakiammal college of Arts & Science, Coimbatore for granting permission
to do institutional training.
I sincerely thank our Principal N.RajakumarM.Sc.,M.Phil.,M.Ed.,Ph.D., for giving me
the opportunity to do this industrial training and his support throughout the training period.
My sincere thanks to Mr. R.Sunderaraj, M.Com., M.Phil., D.H.T., Head of the
Department of commerce & IB for his guidance and also for his most valuable suggestion
throughout the training period.
I wish to express my sincere gratitude to my Guide Mr., Rajkumar M.com., M.PHIL., lecturer in Commerce and IB for her constant encouragement and technical advice which helped me for completing the training successfully.
I also express my sincere thanks to all the staffs of Commerce and IB who have helped me
in the successful completion of the project.
I also extend my thanks to my family and to all my friends without whose assistance and
guidance, this project works would not have been a reality.
CONTENTS
CHAPER TITLE PAGE.NO
ACKNOWLEDGEMENT
LIST OF TABLE
LIST OF CHART
I INTRODUCATION AND DESIGN OF THE STUDY 1
II REVIEW OF LITERATURE 6
III PROFILE OF THE COMPANY 9
IV ANALYSIS AND INTERPRETATION 18
V SUMMARY OF FINDINGS,SUGGSTION 53
CONCLUSION 57
BIBLIOGRAPHY 58
APPENDIX
LIST OF TABLES
S.NO LIST PAGE.NO
1 GENDER CLASSIFICATION OF RESPONDENTS 19
2 MARITAL STATUS OF THE RESPONDENTS 21
3 EDUCATION QUALIFICATION OF THE RESPONDENT 23
4 OCCUPATION STATUS OF THE RESPONDENTS 25
5 MONTHLY INCOME OF THE RESPONDENT 27
6 FAMILY SIZEOF THE RESPONDENTS 29
7 AWARENESS OF LIC HOUSING FIANCES 31
8 PURPOSE OF THE LOAN AVAILED OF THE RESPONDENT 33
9 SPECIAL REASON FOR PREFERING LIC HOUSING
FINANCE
35
10 PERFORMANCE OF LIC HOUSING FINANCE 37
11 RATE OF INTREST CHARGED BY LIC 39
12 LOAN DURATION PROCESS OF LIC HOUSING FINANCE 41
13 TYPE OF THE BULIDING PREFERRED FOR
CONSTRUCTION BY RESPONDENT
43
14 PURPOSE OF CONSTRUCTING THE HOUSE 45
15 METHOD OF PERFERRED CONSTRUCTION THE HOUSE 47
16 LOCATION OF SITE 49
17 PROBLEMS FACED BY THE RESPONDENT 51
LIST OF CHARTS
S.NO LIST PAGE.NO
1 GENDER CLASSIFICATION OF RESPONDENTS 20
2 MARITAL STATUS OF THE RESPONDENTS 22
3 EDUCATION QUALIFICATION OF THE RESPONDENT 24
4 OCCUPATION STATUS OF THE RESPONDENTS 26
5 MONTHLY INCOME OF THE RESPONDENT 28
6 FAMILY SIZEOF THE RESPONDENTS 30
7 AWARENESS OF LIC HOUSING FIANCES 32
8 PURPOSE OF THE LOAN AVAILED OF THE RESPONDENT 34
9 SPECIAL REASON FOR PREFERING LIC HOUSING
FINANCE
36
10 PERFORMANCE OF LIC HOUSING FINANCE 38
11 RATE OF INTREST CHARGED BY LIC 40
12 LOAN DURATION PROCESS OF LIC HOUSING FINANCE 42
13 TYPE OF THE BULIDING PREFERRED FOR
CONSTRUCTION BY RESPONDENT
44
14 PURPOSE OF CONSTRUCTING THE HOUSE 46
15 METHOD OF PERFERRED CONSTRUCTION THE HOUSE 48
16 LOCATION OF SITE 50
17 PROBLEMS FACED BY THE RESPONDENT 52
CHAPTER I
INTRODUCTION AND DESIGN OF THE STUDY
Introduction
House is the first unit of society and it is primary unit of human habitation. The house is
built to grant protection against wind & weather and to give insurance against physical in
security of all kinds. As a matter of facts the house has come to occupy an increasing role as a
framework of family and social life.
East or west home is the best. Foot to eat, clothes to wear, house for shelter. So house is a
common slogan of almost all the house holders in India whether are have or have not.
In India the demand for new house is on the increase over the years due to increase in
population. India needs millions of new house every year. With this end in view the government
of India and the government of Tamil Nadu have formulated many development projects for
housing.
The LIC Housing Finance Limited, housing Development Finance Corporation and Can
find Housing Limited, India Housing Development Finance Corporation Ltd., are the popular
institutions in the field of Housing Finance Market.
All these effects of Government of India, State Government and the Financial Institutions
have led to the growth of Housing in India. The present study is an attempt to the impact of the
utilization of the LIC housing Loan in Coimbatore.
Scope of the study
This study aims at investigating the extent of Lic Housing finances in Coimbatore and its
impact on the customer availing Lic Housing Loan.
Objective of study
1. To study the concept of housing loan by LIC Housing Finance Ltd
2. To High light the extent of the utilization of the LIC Housing loan
3. To study the purpose of the LIC Housing loan
4. To Identify the problems faced by the LIC policy holder while getting loan
5. To offer suggestions for the growth of LIC housing loan
METHODOLOGY AND TOOLS APPLIED
This study is based on questionnaires first hand data were collected directly from the
policy holders and from the records of the offices like LIC HOUSING FINANCE LIT
AVAINASI ROAD COIMBATOR.
The study has involved a survey of the selected policy holders thought data was collected
questionnaire.
The following statistical techniques were used in the study Simple Percentage Analysis
Tools and charts used.
AREA OF THE STUDY
The area of the study refers to Coimbator city.
PERIOD OF STUDY
The period of study was conducted from December 2011 to February 2012
FIELD WORK AND COLLECTION OF DATA
Filed work for this study was carried on by the research himself in the month of
December to March. The research has used Questionnaires method for collecting data. 150
respondents has selected by using the convenient Random sampling Method. Who have
borrowed housing loan from the LIC HOUSING FINANCE LTD. The researcher explained the
content of the Questionnaires and gives it. The second visit were made on the fixed time and the
research collects the filled interview schedules and hearted the ideas of the respondent about the
Lic housing finance Lid.
LIMITIONS OF THE STUDY
Number of the policy holders taken for the study are very limited (150 respondent)
The study cover only coimbator city.
This study based on only the information gives by the respondent.
OPERATIONAL DEFINITION
LIC HFL-LIFE INSURANCE CORPORATION HOUSING FIANCE LIMIT
CHAPTER SCHEME
CHAPTER 1
INTRODUCTION AND DESIGN OF THE STUDY
Its deals with introduction, Scope of the study, Objective of study Scope of the study
methodology and tools applied, area of the study, period of study
Field work and collection of data.
CHAPTER 2
REVIEWE OF LITERATURE
Its deals with a brief review of the literature relevant to Lic housing loan.
CHAPTER 3
PROFILE OF THE COMPANY.
CHAPTER 4
ANALYSIS AND INTERPRETATION
Its deals with analysis and interpretation of the collected data.
CHAPTER 5
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION
its deals with findings, suggestion and conclusion
CHAPTER II
REVIEW OF LITERATURE
The chapter makes a brief review of the literature relevant to LIC housing finance and
home loans. There are only limited studies, which are directly relevant to the study concerned.
The researcher has made an attempt to present a brief review of the literature available, which
consists of articles published in journals and M.Com, M.Phil thesis in the related area.
Krishnan (1989) - in his article in ‘Business India’ about role of LIC in lending Home
Loans have stated that over 60 per cent of the business of LIC HFL is believed to be generated
by the LIC Agents. He identified that with two structures of loans (With and without policy).
There is a possibility of some losing interest.
D.Murthy (1991) – in his study states that higher percentage of the person prefer the
LIC housing loan for the reason that it covers risk in case of unfortunate death and it bears low
interest rate and majority of the loans prefers interest plus premium as the mode of repayment
most of the respondents feel that LIC charges are reasonable.
M.Venkatraman (1992) – in his study found that all the respondents have seen
advertisement for home loans. He also identified that the respondents prefer the payment for
purchase of housing flats must be an installment basis. He added that by this perception of
customers, there will be possibility of availing home loans to a greater extent, if these institutions
properly identify the customers.
6
Vijayan (1995) – in his study on LIC housing loan have identified that national Housing
Bank refinance is directly tied to individual housing loan at fixed rate of interest lower than the
rate of housing finance institutions charges to the borrower. As the NHB provides the Sources
for the funds the risk of default is still borne by the LIC housing finance institution. One of the
greatest potential sources of funds for housing finance institution in securitization of mortgages.
P.K. Umamaheswari (1999) - in her study states that “Home loans have to come to
rescue the credit crisis by a misting to a greater extent. She also identify people are unaware and
out of fear of interest charged and burden, do not prefer these scheme to a greater level. If all
there are identify properly there will be greater change in economic conditions of the people and
the goal of “House for all can be achieved easily”.
Mr.R.Kamaraj (2002) – who is working in LIC as an Area Field Officer? In his
statement now a day the commission of LIC agent was reduced, in agent point of view it affects
the growth of LIC HFL.
R.N. Malhotra (2003) – in his article in RBI Bulletin state that inadequacy of finance
resources is not the sole inhabiting factors in housing development. It can be solved by
institutions effective lending of home loans, like, LIC, HDFC, and other Banks etc.
Ravindra Bandekar (2005) - in his article business world has analyzed the prospect of
LIC Housing finance ltd. He concluded that, if is a social sector in the service of the nation
helping ordinary Indians build homes.
Dr.C.Harichandran (2006) - in his articles housing has identified housing as a basic
need. The high prices have kept it at pay for many particularly the weaker sections of the society
financing of housing. Serious problem which the national housing policy aims at mitigating. He
also indentified that Government investment in this sector has been on the increase yet not the
level expected. Hence the rate of institutional finance assumes vital importance. The HUDCO,
HDFC, LIC & Banks can provide housing finance.
The another article published the current status of the life Insurance Corporation of India,
which commanded a monopoly of soliciting and selling life Insurance in India created huge
surpluses and contributed around 7 per cent of India’s GDP in 2006.
8
CHAPTER III
Profile of the company
LIC Housing Finance Ltd one of the largest stand alone Housing Finance Company I
India prides itself having provides finance for over 8, 50,000 house in the country. The company
which was promoted by today most trust service brand Life insurance Corporation of India in
1989, has come a long ways and is surging ahead with a clear vision to emerge as the Best
Housing Fiancés Company with strongly embedded values of fair and transparent business
practices. In the process the company has won the trust and confidence of home finance seekers.
LIC Housing Finance Ltd went public in 1994 and has been a profit making entity year
after year It has always provided finance at affordable and competitive rates making it preferred
destination for Customers The Company has consistently improved on its product offerings and
services standard there By ensuring the best deal to the customers. Today in addition to loan for
purchase of house/flat/plot, it also proving fiancés for renovation and repair house.
9
Main location : 1989 Bombay life Building 2nd
Floor, Mumbai 400 001.
Coimbatore Location : LIC Housing Finance
Avinasi road
Coimbatore. 641028
Main office : 6, Regional office 18
Operating office : 115
Banks : SBI, HDFC
Phone number : 22049682/ 22049799/
Website : www.lichousing.com
SET UP
Incorporation : 19th June 1989
Authorized Capital : Rs. 1,00,00,00,000
Paid-up Capital : Rs. 84, 99, 63,475
No. of Employees : 8861(as on 31/10/2011)
No. of Offices : 18 Regional Offices
: 6 Main Offices
: 115 Area Offices
10
SHAREHOLDING PATTERN (as on 31st March2011)
LIC of India : 39.084per cent
Mutual Funds & UTI : 3.741 per cent
Banks & FIs. Etc : 3.614 per cent
Foreign Institutional Investor : 35.315 per cent
Others : 18.246 per cent
MAIN OFFICE
There were 6 main offices in India
New Delhi
Kolkata
Luck now
Chennai
Mumbai
Bangalore
11
REGIONAL OFFICE
There were 18 Region offices in India namely,
Chandigarh
Nagpur
New Delhi
Hyderabad
Luck now
Pune
Siliguri
Mumbai
Jaipur
Chennai
Vadodara
Bangalore
Bhopal
Coimbatore
Ranchi
12
Operating Offices
LIC HLF has been 115 operating offices thoughts the country
INDIVIDUAL HOUSING LOAN SCHEMS
Loan to individual for new house Property:
Loan up to 85 per cent of property cost
Loan amount starting from Rs 1,00,000
Term up to 20 years
Loan to Non-Resident Indians
Exclusive Scheme for NRIs
Loan up to 70 percent of property cost.
Loan amount starting from Rs 5,00,000
Term up to 10 years
Mortgage Loan of existing house property
Loan for personal / business need against first mortgage of self occupied
residential house / flat
Loan amount starting from Rs 2,00,000
Term up to 15 years
13
Loans to Corporate Employees
Scheme for Employees , Public Limited and Selected private Ltd Companies
Lower rate of interest if payment is through salary deduction
Upfront fee waiver up to 0.50 percent
THE LOAN PROCESS
Application form filled
Identity proof:
Copy of income Tax PAN Card /Passport/Voter ID Card /Driving License/Photo
Credit Card/Employee ID Card as the case may me.
Income Document
In case of salaried person
Copies of last 3 mouth Pay Slips
Copy of From 16 & ITRof latest Assessment year
Copy Salary bank passbook statement for at last 6 month.
14
In case of self-Employed Persons/ Professionals
Copies Income computation Statement & full set of Financials for last 3 Assessment
years
A Note on the Business / professional Activities.
Copies of Bank Passbooks/ Statement for at least past for 6 mouth.
ADVANTAGES OF LIC HFL LOAN
Competitive interest rate
Fixed Floating Rate
Special Concessions of Employers of approved corporate
Loans Against Securitization of Rentals
Double tax benefits on Interest & Principal
NO commitment Charges for Undrawn Loan Amount
15
REQUIREMENT
Personal Documents:
1. Application from with 2 photos , duty filled in & signed
2. Copy of Ration Card/ Phone Bill/ Driving License copy ( residence proof)
3. Copies of Bank Statement for last 6 months
4. Income Documents:
a) If salaried:
Salary certificate from the Employer in LICHFL format.
Salary slips (2 or 3 months) copies
From 16 Xerox.
Appointment order copy (if new employment)
b) If Self – employed:
Last 3 year’s Income Tax Returns (filed in relevant years)
Certified by Auditor
Computation of Income certified by Auditor for 3 years
Pan Card copy
Tax paid (Bank) Chelan copies
Introduction / Creditworthiness letter from Auditor
16
LIC POLICIES HOLDERS IDENTY.
Xerox Copies of existing LIC polices (1 page)
Approved Building Plan – Original (2 copy)
Estimate for construction / extension / renovation attested by an Engineer.
Housing tax receipts (Purchase cases & take over cases only)
Preliminary inspection report by Panel Value.
Copy of land documents in applicants favor (2 copies)
Parent document for last 12 years ( 2 copies at initial stage, original at disbursement
stage)
Encumbrance certificate for the last 15 years ( 2 copies)
Sale Agreement (Purchase cases only )
In case of take over loans
CHAPTER IV
ANALYSIS AND INTERPRETATION
In the order to study the customer satisfaction toward LIC HOUSING FIANCE with
special reference to coimbator structured Questionnaire consists of 23 was prepared. A sample of
150 respondent was selected from coimbator city and information obtained from them were
presents in different tables by using percentage analysis
This analysis helps that a common man to understand what percentage the respondent
belong to each category of a factor.
TABLE NO – 4.1
GENDER OF THE RESPONDENTS
NO Gender Number Percentage
1 Male 119 79.33
2 Female 31 20.66
Total 150 100
Source: Primary Data
It could be seen that majority 80% of the respondent are male and only 20% of the
respondent are female.
So it can be concluded that the majority 80% of the respondent are Male
19
CHART NO - 4.1
GENDER OF THE RESPONDENTS
Table
male
female
20
TABLE NO – 4.2
MARITAL STATUS OF THE RESPONDENTS
MARITAL STATUS NO OF RESPONDENTS PERCENTAGE
Married 129 86
Unmarried 21 14
Total 150 100
Source: Primary Data
Its is understood from the above table that, out of total respondent 86% are married.
While 14% are unmarried.
So, its can be conclude that the majority (86%) of the respondent are married.
21
CHART NO – 4.2
MARITAL STATUS OF THE RESPONDENTS
TABLE NO - 4.3
EDUCATION QUALIFICATION OF THE RERSPONDENT
Source: Primary Data
Its is know from the above table out of the total respondent takes for study, 10% of the
respondent belongs to No formal education , 18% of the respondent belong to School level,27%
of the respondent belong that UG and Diploma and the 22% of the respondent belong to PG,
25% of the respondent belong that of professional.
Majority of the respondent belong that to under graduate diploma level.
23
CHART NO – 4.3
EDUCATION
QUALIFICATION
NO OF
RESPONDENTS
PERCENTAGE
No formal
Education
15 10
School Level 27 18
UG / Diploma 41 27
PG 30 22
Professional 37 25
Total 150 100
EDUCATION QUALIFICATION
No formal Educa-tion
School Level UG / Diploma PG Professional0
10
20
30
40
50
60
70
80
90
100
PERCENTAGE
24
TABLE NO - 4.4
OCCUPATION STATUS OF THE RESPONDENTS
Source: Primary Data
Its is know from the above table out of the total respondent takes for study the, 36% of
the respondent belongs to business or profession, 26%of the respondent belongs to private
employee,24% of the respondent belong that Government employee and the 14% of the
respondent belong to Agriculture category.
Majority of the respondent belong that to Business/Professional.
22
CHART NO - 4.4
STATUS NO OF
RESPONDENTS
PERCENTAGE
Agriculture 21 14
Business/Profession 54 36
Government employee 36 24
PVT employ 39 26
Total 150 100
OCCUPATION STATUS OF THE RESPONDENTS
26
TABLE NO - 4.5
MONTHLY INCOME OF THE RESPONDENT
Agricu
lture
business
/Pro
fessio
n
Govern
ment e
mploye
PVT employ
0
10
20
30
40
50
60
70
80
90
100
14
36
24 26
Percentage
Source: Primary Data
From the above table, it is clear that out of that total respondent ,20% of the resondent
belong s to the income group of below Rs 10000, 36% of them belong of the income group of
Rs.10001-Rs 20,000. 14% of the respondent belongs to the income group of Rs.20001-Rs
30,000 and 30% of the respondent belong to the income group of above Rs 30,0000
Its the concluded that the majority of the respondent belongs to the income group of
Rs.10,001-Rs 20,0000
27
CHART NO - 4.5
MONTHLY INCOME OF THE RESPONDENT
STATUS NO OF
RESPONDENTS
PERCENTAGE
Below Rs 10000 30 20
Rs 10001-20000 54 36
Rs 20001-30000 21 14
Above 30000 45 30
Total 150 100
Below Rs 10000 Rs 10000-
20000 Rs 20000-30000 Above 30000
0
10
20
30
40
50
60
70
80
90
100
20
36
14
30
Percentage
28
TABLE NO – 4.6
FAMILY SIZE OF THE RESPONDENT
SIZE OF THE FAMILY NO OF RESPONDENTS PERCENTAGE%
Up to 2 members 24 16
2-3 54 36
3-5 42 28
Above 5 30 20
Total 150 100
Source: Primary Data
The above data, it is clear that out of the total respondent 16% the family size is up to
2 members, 36 % members of the respondent size o family size of the 2-3 members , 28% of the
respondent have the family size is 3-5 members, and 20% of the respondent belong to the family
size is above 5 members.
Hence it can be concluded that, the majority of the respondent have the family size of 2-3
members
29
CHART NO – 4.6
FAMILY SIZEOF THE RESPONDENT
TABLE NO - 4.7
AWARENESS OF THE RESPENTENT
Source: Primary Data
From the above table showing, 36% of the respondent saying that the Awareness is
through the Agent ,20% of the respondent saying that the awarness through Friends , 14% of the
respondent saying awarness through Relative, 30% of the respondent have no idea about the
Advertiment media.
Majority of the respondent have Awareness through the agent Of LIC HFL.
31
CHART NO - 4.7
AWARENESS OF THE RESPENTENT
STATUS NO OF
RESPONDENTS
PERCENTAGE
Agent 54 36
Friends 30 20
Relatives 21 14
Advertisement 45 30
Total 150 100
32
TABLE NO - 4.8
PURPOSE OF THE LOAN AVAILED
Source: Primary Data
Its is known from the above table out of the total respondent taken for the study, 36%of
the respondent belongs to Construction of New house, 26% of the respondent belong to
Alteration of old house ,24% of the respondent belong that Purchase of New house and the
14%of the respondent belong to Purchases 0f old house and alternative.
Majority of the respondent belong the Construction New house
33
CHART NO - 4.8
PURPOSE OF THE LOAN AVAILED
STATUS NO OF
RESPONDENTS
PERCENTAGE
Construction of New house 54 36
Alteration of old house 39 26
Purchase of new house 36 24
Purchases of old house and
alternative
21 14
Total 150 100
34
TABLE NO - 4.9
SPECIAL REASON FOR PREFERING LIC HFL
Source: Primary Data
The table reveals that majority 52% of the respondent has Risk covers death , 24%
respondent as prefer by it has Easy procedure, 14 % respondent prefer interest rate and 10%
respondent other specific
The majority people special reason to prefer lic housing finance was Risk cover death
35
STATUS NO OF
RESPONDENTS
PERCENTAGE
Risk covers death 78 52
Easy procedure 36 24
Interest rate 21 14
others (specific)…… 15 10
Total 150 100
CHART NO - 4.9
SPECIAL REASON FOR PREFER LIC HOUSING FINANCE
36
TABLE NO - 4.10
PERFORMANCE OF LIC HOUSING FINANCE
Source: Primary Data
From the above table showing, 12% of the respondent saying that they excellent
service,30% of the respondent saying that better service, 36% of the respondent saying that are
not satisfatied, only 22% of the respondent have no idea about the performance of the LIC HFL.
So, majority of the respondent saying that, they are not satisfied, because of delayed,
approval by the LIC HFL.
37
STATUS NO OF
RESPONDENTS
PERCENTAGE
Excellent 18 12
Better 45 30
Not satisfied 54 36
others (specific)… 33 22
Total 150 100
CHART NO - 4.10
PERFORMANCE OF LIC HOUSING FINANCE
38
TABLE NO - 4.11
THE RATE OF INTEREST CHARGED BY LIC HFC
Source: Primary Data
Its is know from the above table out of the total respondent takes for the study, 46% of
the respondent belongs to High rate , 38% of the respondent belong to Medium rate interest ,10%
of the respondent belong that Low interest rate and the 6% of the respondent belong to Very low
interest rate.
Majority of the respondent belong that to High rate of interest.
39
STATUS NO OF
RESPONDENTS
PERCENTAGE
High 69 46
Medium 57 38
Low 15 10
Very low 9 6
Total 150 100
CHART NO - 4.11
THE RATE OF INTEREST CHARGED BY LIC HFC
42
TABLE NO - 4.12
LOAN DURATION PROCESS OF LIC HOUSING FINANCE
Source: Primary Data
From the above table showing, 15% of the respondent says that Below 1 month ,27%of
the respondent saying that 1 to 2 month, 31 % of the respondent says that 2 to 3 month , 22%
respondent 3 to 4 month,only 5% of the respondent have no idea.
So, majority of the respondent saying that, they are loan duration processi ng are 2 to 3
months.
41
STATUS NO OF
RESPONDENTS
PERCENTAGE
Below 1 month 22 15
1 month to 2 month 40 27
2 month to 3 month 46 31
3 month to 4 month 32 22
Others (specific)…… 10 5
Total 150 100
CHART NO - 4.12
LOAN DURATION PROCESS OF LIC HOUSING FINANCE
Below 1 month
1 month to 2 month
2 month to 3 month
3 month to 4 month
Others (specific)……
0
10
20
30
40
50
60
70
80
90
100
15
2731
22
5
percentage
42
TABLE NO – 4.13
TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION BY THE
RESPONDENTS
Source: Primary Data
Its is know from the above table out of the total respondent taken for study, 48% of the
respondent preferred Single House 26% of the respondent preferred that
Bungalow, ,16% of the respondent preferred Apartment and 10% of the respondent.
Preferred that others.
Majority of the respondent preferred that used to loan for construct the single Single
House .
43
STATUS NO OF
RESPONDENTS
PERCENTAGE
Single House 72 48
Bungalow 39 26
Apartment 24 16
others (specific)…… 15 1
Total 150 100
TABLE NO -4.13
TYPE OF THE BULIDING PREFERRED FOR CONSTRUCTION OF THE
RESPONDENTS
Single House Bungalow Apartment others (specific)……
0
10
20
30
40
50
60
70
80
90
100
48
26
1610
Precentage
Precentage
44
TABLE NO – 4.14
PURPOSE FOR CONSTRUCTING THE HOUSE
Source Primary Data
It is clear that the object of constructing a house 53% of the respondent have constructed
for their own residential purpose, 20 % the respondent of rental house, 17% are Business
purpose, 10% are other purpose
So Majority of the respondent like to fulfill their Residential purpose
45
STATUS NO OF
RESPONDENTS
PERCENTAGE
Residential house 81 53
Rental house 30 20
Business 24 17
others (specific)…… 15 10
Total 150 100
CHART NO – 4.14
PURPOSE FOR CONSTRUCTING THE HOUSE
46
TABLE NO – 4.15
METHOD PERFERRED FOR CONSTRUCTION OF THE HOUSE
Source: Primary Data
From the above table, we can clear that, 30% of respondent have that house by the way
of Direct employed , 20% of the respondent have Self Employed as masons and labours for
their construction work and 40% of the respondent have appointed contractors and Engineer’s
for their construction work Balance 10% of the respondent have prefer any other method of both
of them
So, Majority of the respondent like to build their house through contractor
4u
STATUS NO OF
RESPONDENTS
PERCENTAGE
Direct employed 45 30
Self employed 30 20
Contractors 60 40
Engineers 15 10
Total 150 100
CHART NO - 4.15
METHOD PERFERRED FOR CONSTRUCTION OF THE HOUSE
48
TABLE NO – 4.16
LOCATION OF SITE
Source: Primary Data
From the above table, we can clear that, 28% of respondent have that Rural area,
Next 30 % of the respondent have ,Urban Area as masons and labours for their Develop Area
30% of the respondent balance 12% of the respondent have selected any other local Ares.
So, Majority of the respondent are selected urden as well as developed area for their
future convenience.
51
STATUS NO OF
RESPONDENTS
PERCENTAGE
Rural 42 28
urban area 45 30
Develop area 45 30
others (specific)…… 18 12
Total 150 100
CHART NO – 4.16
LOCATION OF SITE
52
TABLE NO - 4.17
PROBLEMS FACED BY POLICY HOLDER WHILE GETTING LOAN
Source: primary Data
The table shows that among the total respondent faced problems 10% at Agents ,22
problem faced at Engineers ,58% Delayed Approval ,balance faced 10 per cent faced others
problems
So majority Delayed Approval it faced at problems faced by policy holder while getting
problems
51
STATUS NO OF
RESPONDENTS
PERCENTAGE
Agent 15 10
Engineers 33 22
Delayed Approval 87 58
others (specific)…… 15 10
Total 150 100
CHART NO - 4.17
PROBLEMS FACED BY POLICY HOLDER WHILE GETTING LOAN
52
CHAPTER v
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION
Now a day the demand for housing loan though LIC housing finance limited is on
increasing level. Coimbator is fast developing industrial town in Tamil Nadu state. People
from other districts also come to coimbatore in considerable number and settlehear. The
increase in population and influx of people from other districts create moredemand for
house every year. This is an attempt investigation the extent CUSTOMERSATISFACTION
TOWARD LIC HOUSING FINANCE WITH SPECIAL REFERENCE TO
COIMBATORE
55
FINDINGS.
The following are the major findings of the study on the application of
percentage analysis:
Majority of the respondent of that the majority 80% of the are Male.
Majority of that (84%) of the respondent was are married.
Majority of that respondent are completed their under graduate and
diploma level
Majority of the respondent belong that to Business/Professional.
Majority of the respondent belong to the income group of Rs.10,001-Rs
20,000
Majority of that respondent have the family size is 2 to 3 members
Majority of the respondent have Awareness through the agent Of LIC
HFL.
Majority of the respondent belong that to Construction New house
The majority people special reason to prefer lic housing finance was
Risk cover death
56
Majority of the respondent saying that, they are not satisfied, because of
delayed, approval by the LIC HFL.
Majority of the respondent belong that to High rate of interest.
Majority of the respondent saying that, they are loan duration processing
are 2 to 3 months.
Majority of the respondent preferred that used to loan for construct the
single Single House.
Majority of the respondent like to fulfill their Residential purpose
Majority of the respondent like to build their house through contractor
and Engineers.
Majority of the respondent are selected urban as well as developed area
for their future convenience.
So majority Delayed Approval it faced at problems faced by policy
holder while getting problems .
57
SUGGESTIONS
Agents service is most important in this field. So the LIC HFL should improve
the agent services
The Advertisement of home loans should be given more effectively. So as to
reach all the people in a both urban and rural area.
Most of the respondents feel that the processing of loan is very length and
irritating. So the LIC HOUSING can reduce the processing o loan for easy
applicable.
Now a days lot of private as well as Government banks and financial
institutions provide the housing loans at cheaper rate of interest than the LIC
HFL so it may reduce their rate of interest.
Assistance should be provide for repair and maintainance of the house in large
level. It will increase the borrowers of home loans.
Procedure for providing loan should be reduced
A coimbatore its industrial town more and more people from other district
come and get employment hear so agent may approach all the employees and
self employed person who had came from other districts and help more people
to get housing loan.
58
CONCLUSION
Finally concluded that the LIC HFL can fulfill the constant increase of the population and
their housing needs by properly utilizing its agents liberalizing the terms and conditions of
the home loan. LIC HFC provides assistance from 1,00,000 to 1 crore. If less rate of
interest and quick processing time is implement, the customers can be benefited by the
assistances availed by the LIC HFC and it can play vital role in housing finance.
59
BIBLIOGRAPHY
TEXT BOOKS
1. Fundamentals of markets - William Joseph.
2. Bank Marketing - Smith.
3. Research Methodology - Gupta s.p.
4. Business Research method - Emory.
5. Housing in India - Ramarao.G.
6. Housing Patterns _ Pankaj Agrwal.
NEWS PAPERS AND MAGAZINES
7. Business World.
8. Business India.
9. Economic Time.
WEBSITES
10. www.goole.com
11. www.lichousing.in
12. www.wikipedi.com