Full Dissertation

A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal

CHAPTER 1

INTRODUCTION

1.1) INTRODUCTION: -

“A Co-operative bank, as its name indicates is an institution consisting of a

number of individuals who join together to pool their surplus savings for the purpose

of eliminating the profits of the bankers or money lenders with a view to distributing

the same amongst the depositors and borrowers.”

The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as

a co-operative registered as a co-operative bank in terms of the Act whose members –

1. Are of similar occupation or profession or who are employed by a common

employer or who are employed within the same business district; or

2. Have common membership in an association or organization, including a

business, religious, social, co-operative, labor or educational group; or

3. Have common membership in an association or organization, including a

business, religious, social, co-operative, labor or educational group; or

4. Reside within the same defined community or geographical area.

Co-operating Banking: -

Co-operative bank, in a nutshell, provides financial assistance to the people

with small means to protect them from the debt trap of the money lenders. It is a part

of vast and powerful structure of co-operative institutions which are engaged in tasks

College of Management & Computer science, Yavatmal


of production, processing, marketing, distribution, servicing and banking in India. A

co-operative bank is a financial entity which belongs to its members, who are at the

same time the owners and the customers of their bank. Co-operative banks are often

created by persons belonging to the same local or professional community or sharing

a common interest. These banks generally provide their members with a wide range of

banking and financial services (loans, deposits, banking accounts…). Co-operative

banks differ from stockholder banks by their organization, their goals, their Values

and their governance.

The Co-operative Banking System in India is characterized by a relatively

comprehensive network to the grass root level. This sector mainly focuses on the local

population and micro- banking among middle and low income strata of the society.

These banks operate mainly for the benefit of rural areas, particularly the agricultural

sector.

1.2) ORIGIN OF CO-OPERATIVE BANKING: -

The beginning co-operative banking in India dates back to about 1904, when

official efforts were made to create a new type of institution based on principles of co-

operative organization & management, which were considered to be suitable for

solving the problems peculiar to Indian conditions. The philosophy of equality, equity

and self help gave way to the thoughts of self responsibility and self administration

which resulted in giving birth of co-operative. The origin on co-operative movement

was one such event-arising out of a situation of crisis, exploitation and sufferings.

Co-operative banks in India came into existence with the enactment of the

Agricultural Credit Co-operative Societies Act in 1903. Co-operative bank form an



integral part of banking system in India. Under the act of 1904, a number of co-

operative credit societies were started. Owing to the increasing demand of co-

operative credit, anew act was passed in 1912, which was provided for establishment

of co-operative central banks by a union of primary credit societies and individuals.

Co-operative Banks in India are registered under the Co-operative Societies

Act. The cooperative bank is also regulated by the RBI. They are governed by the

Banking Regulations Act 1949 and Banking Laws (Cooperative Societies) Act, 1965.

1.3) IMPORTANCE OF CO-OPERATIVE BANKING: -

Co-operative bank forms an integral part of banking system in India. This

bank operates mainly for the benefit of rural area, particularly the agricultural sector.

Co-operative bank mobilize deposits and supply agricultural and rural credit with the

wider outreach. They are the main source for the institutional credit to farmers. They

are chiefly responsible for breaking the monopoly of moneylenders in providing

credit to agriculturists.

Co-operative bank has also been an important instrument for various

development schemes, particularly subsidy-based programs for the poor. Co-operative

banks operate for non-agricultural sector also but their role is small. Though much

smaller as compared to scheduled commercial banks, co-operative banks constitute an

important segment of the Indian banking system. They have extensive branch network

and reach out to people in remote areas. They have traditionally played an important

role in creating banking habits among the lower and middle income groups and in

strengthening the rural credit delivery system.



Types of Co-operative Banks

Multistate Consultant Private Limited: -

Multistate Consultant Private Limited provides A-Z services regarding Multistate

Cooperative Society, Mutual Benefit (Nidhi) Company, Producer Company, Section

25 Company, NBFC etc starting from its registration, Advisory services regarding

daily activities, finalization of accounts, Submission of annual return and so on.

Multistate Co-operative Society: -

A multi-state cooperative society may be registered if its main object is not confined

to one State and serving the interests of members in more than one State, to facilitate

the voluntary formation and democratic functioning of Co-Operatives as people's


http://www.multistate.in/services.asp


institutions based on self-help and mutual aid and to enable them to promote their

economic and social betterment and to provide functional autonomy and for matters

connected therewith or incidental thereto.

A multi-state Co-operative Society is basically a society that is registered or

deemed to be registered under the ‘Multi-State Cooperative Societies Act, 2002’ and

includes a National Cooperative Society or a Federal Cooperative. Ministry of

Agriculture is will issue the registration certificate.

Multi State Co-operative Societies are of several types:

Multistate Credit Co-operative Society

Multistate Housing Co-operative Society

Multistate Farming Co-operative Society

Multistate Dairy Firm Multi State Co-operative Society

Multistate Solar Credit Co-operative Society

Multistate Multi State Multi Purpose Co-operative Society

Multistate Transport Co-operative Society and many more

Producer Company: -

The Companies (Amendment) Act 2002 vides notification no. S.O. 135 (E) inserted

part IX – A of the Companies Act, 1956 (hereinafter referred to as “the Act” ) and

introduced the concept of Producer Company. In the year 2002 an expert committee

led by noted economist Y.K Alagh framed legislation for incorporation of a producer

company, and conversion of inter- state cooperative society into a producer company


http://www.multistate.in/clients.asp


and its reconversion into cooperative society. It aims at upliftment of rural producers

for following reasons:

Rural producers have been at a potential disadvantage given their limited assets,

resources, educational and access to advanced technology.

In Indian context the farmers disposes of his produce in unprocessed form there is

no plough back of surpluses from value addition to the farm.

Agribusiness enterprises are therefore increasingly looking for direct tie up with

the farmers to source the agricultural produce required by them.

Therefore companies (Amendment) act 2002 part IX-A is a step in this direction.

The companies shall be termed as limited and the liability of the members will be

limited to the amount, if any, unpaid on the shares. On registration, the producer

company shall become as if it is a private limited company with the significant

difference that a minimum of two persons cannot get them registered, the provision

relating to a minimum paid-up capital of Rs. 1 lakh will not apply and the maximum

number of members can also exceed 50.

Members' equity cannot be publicly traded but be only transferred. As such, "producer

companies would not be vulnerable to takeover by other companies or by MNCs.''

Formation of Producer Company: -

Any ten or more individuals, each of them being a producer, that is, any person

engaged in any activity connected with primary produce, any two or more producer

institutions, that is, producer companies or any other institution having only

producers or producer companies as its members or a combination of ten or more



individuals and producer institutions, can get a producer company incorporated

under the Act.

Every producer company is to have at least five and not more than 15 directors.

A full time chief executive, by whatever name called, is to be appointed by the

board.

Following enclosures and documents are required to be submitted with along the

application:

A copy of the special resolution passed with2/3 majority of the member.

A statement showing names, addresses and occupation of the Directors and the

Chief Executive.

A list of the members.

A statement indicating that the Inter-State Cooperative Society is any one or more

of the objects specified in section 581B.

A declaration by two or more Directors certifying that the particulars given as per

para (1) to (4) above are correct.

Guidance on Software Development procedure,

Regular updating regarding multistate society’s laws/ circulars / notifications to

our clients.

People’s cooperative bank, Hingoli is also one of the parts of Multistate Consultant

Private Limited and this study of project mainly focuses on the leading functions of

the banks with special reference to “People’s cooperative bank, Hingoli”.



The report states different kinds of loans and the survey that shows the average

number of loan proposal approved and disapproved by the bank.

The study gives an insight into procedures followed by the bank as per the norms of

Reserve Bank of India and Co-operative Society Act 1960.

1.4) HOUSING FINANCE:

Housing finance is a broad topic, the concept of which can vary across

continents, regions and countries, particularly in terms of the areas it covers. For

example, what is understood by the term “housing finance” in a developed country

may be very different to what is understood by the term in a developing country.

The International Union for Housing Finance, as a multinational networking

organization, has no official position on what the best definition of housing finance is.

However, the selection of quotes below is offered as a snapshot of what housing

finance as a topic covers

“Housing finance brings together complex and multi-sector issues that are

driven by constantly changing local features, such as a country’s legal environment or

culture, economic makeup, regulatory environment, or political system”

In addition, the concept of housing finance and housing finance systems has

been evolving over time. Looking at definitions from the mid-1980s, we see that

housing finance was defined primarily in terms of residential mortgage finance:

“The purpose of a housing finance system is to provide the funds which home-

buyers need to purchase their homes. This is a simple objective, and the number of



ways in which it can be achieved is limited. Notwithstanding this basic simplicity, in a

number of countries, largely as a result of government action, very complicated

housing finance systems have been developed. However, the essential feature of any

system, that is, the ability to channel the funds of investors to those purchasing their

homes, must remain.”

However, in more recent years, a number of other much wider definitions have

appeared:

“Put simply, housing finance is what allows for the production and

consumption of housing. It refers to the money we use to build and maintain the

nation’s housing stock. But it also refers to the money we need to pay for it, in the

form of rents, mortgage loans and repayments.”

Or

“There is recognition of other relevant forms of housing finance [apart from

residential mortgage finance] such as developer finance, rental finance, or

microfinance applied to housing. Developer finance is often in the form of

unregulated advance payments by buyers, and developers sometimes provide long-

term finance to buyers through installments sales when mortgages markets are not

accessible. Microfinance for housing is typically used for home improvement or

progressive housing purposes. Loans are typically granted without pledging

properties. Although the overall impact of microfinance in housing remains limited,

this activity can represent an important source of funding for those in the informal

sector.”



1.5) HOUSING LENDING MODEL:

Over the ages, shelter has remained as one of the most basic and important

needs of human beings. People’s housing needs have increased manifold in recent

times as the population grows, the middle class expands and younger generations

choose to move into nuclear family units, or move near the increasingly popular

regional work hubs. However, with high costs of construction materials, high capital

costs and increasing complexity of the legal and technical paperwork needed,

accessibility and affordability of house ownership continues to remain a challenge.

Housing finance acts as a bridge to provide financing and open up the housing

market to aspiring house owners. In recent times, specialist housing finance

companies (HFCs) targeting the low-income/financially-excluded household segment

have emerged as a key player to meet the demands of the newly bankable population

who do not have credit history in conventional terms, and are often not served by

banks and mainstream HFCs. The lending model and operational processes of these

specialist HFCs- which we will refer to as Affordable Housing Finance Companies

(AHFCs) – are the subject of this post.

Housing Finance Sector Review: The Environment for AHFCs and HFCs

There are several players in the housing finance space, such as Scheduled

Commercial Banks (SCBs), Housing Finance Companies (HFCs), Affordable

Housing Finance Companies (AHFCs), Financial Institutions (FIs), Regional Rural

Banks (RRBs), Scheduled Cooperative Banks, Agriculture and Rural Development

Banks, State Level Apex Cooperative Housing Society and development



organizations like MFIs or SHGs. However the most significant contribution comes

from SCBs and HFCs (including AHFCs).

As of 28 November 2013, there are 18 HFCs which have been granted

Certificate of Registration2 (CoR) with permission to accept public deposits including

6 HFCs that are required to obtain prior written permission from National Housing

Bank (NHB) before accepting any public deposits. 39 HFCs were granted CoR

without permission to accept public deposits. 5 applications for grant of CoR are still

under process.

HFCs typically offer three products – housing loan, home improvement loan

and Loan against Property. As of March 31, 2012, the percentage of housing loan to

total loans offered by HFCs was about 74%3. The general product bifurcation of

disbursement for housing in FY 2011-12 by HFCs is given below which clearly

depicts the high demand for loans below 25 lakhs.

To enable continuous and uninterrupted disbursements of loans to eligible

borrowers, AHFCs must have continuous, diverse, and reliable sources of funding.

Currently, these sources are limited to raising equity from private sources, bank funds,

private placement of debt, and for a handful of AHFCs (such as Gruh Finance, Saral

Home Finance), public deposits with or without prior written permission. For the

larger universe of AHFCs, however, the lack of access to capital markets and public



deposits compels AHFCs to rely heavily on bank funding, in the form of both long-

and short-term loans. This mixed composition of liabilities, when combined with the

largely long-term nature of assets – the housing loan portfolio – to the tune of 86.7%

of assets having a tenure above 7 years4, requires AHFCs to manage the risk of asset-

liability duration mismatches including risk of refinancing short-term debt at higher

interest rates. Hence, Asset Liability Management (ALM) becomes a key challenge to

HFCs that are highly leveraged and rely predominantly on bank funding.

The regulatory authority and apex financial institution for HFCs, the NHB

provides refinance assistance to eligible HFCs against their existing housing loans.

Such a refinance scheme would be very beneficial for AHFCs and would help them in

managing their ALM mismatches. NHB carried out refinancing to the tune of Rs

17,500 crore5 in the year ended June 2013 and expects to disburse Rs 20,000 crore

under the refinance window. Funding of HFCs as on Mar 31, 2012 is shown in the

below table:

In Part 2 of this post we write about the key features of the lending model,

divergence in processes adopted by some AHFCs and the road ahead.



1.6) PURPOSE OF HOUSING FINANCE:

Home Buying

For home buyers, the primary purpose of a loan is to facilitate the purchase of

a house or to finance the construction of one. A home is the biggest investment most

people will ever make, and few private individuals could afford one without a

mortgage. Mortgage loans give borrowers with good credit histories access to lower

interest rates and make it affordable to own a home within the two or three decades

that the loan takes to pay off.

Home Improvement

Home loans can also fund home improvements, which are very important for

homeowners. Home improvement loans are usually a wise investment because they

add value to a home, some or all of which will be realized when it comes time to sell.

Home improvement loans can also save borrowers money by allowing them to pay for

necessary repairs as needed, rather than waiting to save up money and finding that the

damage is worse and the repairs more expensive that they would have been earlier.

Home Equity

Second mortgages, which include home equity loans and home equity lines of

credit, and cash-out refinance loans give homeowners access to money for home

improvements, medical bills, college tuition or other expenses, based on the equity

built up by paying off the original mortgage. All of these loan types use home equity--

the amount the borrower has already paid against the initial mortgage--to give the

homeowner access to cash. A home equity line of credit is a loan that the borrower



can dip into as needed, making charges periodically. A home equity loan and a cash-

out refinance loan both give the homeowner an up-front lump sum payment. While a

home equity loan exists as a second mortgage alongside the first mortgage, a cash-out

refinance replaces the original mortgage and may also give the borrower access to a

new, lower interest rate.

Lenders

For lenders that provide home loans, including mortgage banks and most large

commercial banks, home loans serve as a means of earning a profit. Lenders charge

interest based on a borrower's degree of risk. In addition, some lenders require certain

borrowers who represent a higher risk to purchase mortgage insurance, which protects

the lender in case the borrower is unable to pay back the loan. Lenders use home loan

interest to pay stock dividends, to pay interest to depositors and to fund other

corporate activities.

The Economy

Home loans have an important purpose in the global economy. Besides

helping to pay for the employment of bank staff, home builders and real estate agents,

home loans also fuel mortgage-backed securities. These are investments that earn

money based on homeowners paying interest to lenders. Investment banks and other

firms use mortgage-backed securities to distribute investments across the economy.



1.7) FOUNDER OF THE BANK:

Sahakarratna Shri Omprakashji Deora Life Profile

Name:-- Omprakash Devkinandanji Deora

“Sunil” New Mondha, Hingoli

Dist. Hingoli—431513

Phone (House) (02456) 220825,220225

Mobile 9422875781

Date Of Birth: -- 08 March 1943

Education: -- Graduate (Sahitya Sudhakar)



Award: -- 1) Sahkarratna

2) Dharmalankar

3) Agraratna

4) Yagnik

Business & Other:--

1) Agriculture & Social Activities, Industrialist Participate In Agriculture, Social &

Religious Program

2) Last 30 Years Working In Co Operative Banking Sector

Founder Chairman:--

1) Apex Co Op Bank Of Urban Banks Of Maharashtra & Goa Ltd, Mumbai

2) Peoples Co Op Bank Ltd Hingoli (One of the Multistate Bank in Marathwada

region)

3) Marathwada Urban Co Op Bank Association Ltd. Aurangabad

4) Parbhani/ Hingoli Dist. Urban Co Op Banks Association Ltd. Parbhani

5) Shri Shankarrao Chavan P V C Pipe Utpadak Sahakari Santha Maryadit. Hingoli

Ex Chairman:--

1) Maharashtra State Cooperative Banks Association Ltd Mumbai

2) Maharashtra State Urban Co Op Bank Federation Ltd Mumbai



3) Bhu Vikas Bank Maryadit Dist . Parbhani

Chairman:--

1) Peoples Co Op Bank Ltd Hingoli (One Of The Multi State Bank In Marathwada

Region)

2) Marathwada Nagari Sahkari Banks Co Op Bank Association Ltd Aurangabad

3) Parbhani/Hingoli Dist Nagari Sahkari Banks Association Ltd

4) Gandhi Sewa Trust Hingoli, Sewabhawi Santha

Vice Chairman:--

Ex Vice Chairman National Federation of Urban Co Op Bank Credit Society Ltd,

New Delhi

Director:--

1) Maharashtra State Urban Co Op Bank Federation Ltd Mumbai

2) National Federation of Co Op Bank & Credit Society Ltd New Delhi

Ex Member:--

1) All India Sanskrit Committee, Varanasi (Uttarpradesh)

2) Hindi Sahitya Adviser Committee (Home Ministry) New Delhi

3) R B I Mumbai Adviser Committee

4) Ward Member Hingoli (1965-1995)



5) Shantata Committee Hingoli

6) Sales Tax Advisor Committee, Maharashtra

7) D P D C Parbhani & Hingoli District Member

8) National Film & Fine Art Cooperative Society New Delhi

9) Bhuvikas Bank Member

Foreign Tour For Studies:--

Tour for Cooperative Revolution Studies Russia, Japan, Italy, Rome, West

Germany & Zekoslovakiya

Political Achievement:--

1) Year1978 to 1995 Marathwada Regional Congress Sarchitnis

2) Chairman, Maharashtra State Congress Committee (Cooperative Revolution,

Mumbai)

3) Chairman, Maharashtra State Congress Committee (Economic Department,

Mumbai)

Social Activity:-

1) Inauguration Statues At Hingoli Of Lord Shri Maharaja Agrasenji & Late Smt

Indira Gandhi ( Ex Prime Minister)

2) Construction Temple for Society



3) Construction Religious School At Haridwar, Mathura, Allahabad, Trambakeshwar

& Varanasi

4) Make at Hingoli City Cement Road, Green Belt, Toilet, Cold Water Tank For Use

Hingoli Citizen

5) 500 Acre Land Provide For Development Industries Zone From Maharashtra State

Industrial Sector At Hingoli

6) Loans Available By Bhuvikas Bank For Formers

7) At Adgaon Tq Hingoli Atleast 350 Formers Get Together & 3500 Acre Land

Getting

Social & Education Activity:--

At Hingoli Established Gandhi Seva Trust

1) Established Shri Shankarrao Chavan Urdu Primary & High School

2) Matoshri Gangadevi Deoda Niwasi Andh Vidyalaya

3) Adult Literacy Programs

4) Established Shri Jai Bajrangbali Vyayam School

5) Provide Land To Nagar Parishad Hingoli Employee For Construction Building So

That Area Called Deora Nagar

Future Plan:--



1) For Bank Employee’s Residence Society Develop At Hingoli

2) Co Op Multi City Hospital

1.8) PRODUCTS:

Current Account

Proprietorship

Partnership

Limited Company

Society Current

Savings Account

Personal Savings

HUF

Society Savings

Fixed Deposits

Fixed Deposits

Senior Citizen

Society Fixed

Re-Investment Deposits

Re-Investment Deposits

Senior Citizen Re-Investment Deposits



Recurring Deposits

Loan Account

Cash Credit Loan

Secured Cash Credit Loan

Term Loan

Housing Loan

Salary Loan

Vehicle Loan

Warehouse Loan

1.9) BANKING CHANNELS:

Any Branch Banking

Internet Banking

ATM Banking

Mobile Branch Banking

SMS Banking

Tele Banking

Mobile Banking

IFSC Codes

1.10) BRANCHES:

Head office- People's Co-op.Bank Ltd.,Hingoli (Multi State Bank)

Head Office, Main Road, Hingoli

Tq.Dist.Hingoli-4311513



Ph:(02456) 220748,220749,220518

Fax: 220481

Email: [email protected]

Branches

Maharashtra Andhra Pradesh

Hingoli branch (Main branch) Adilabad Branch Akhada Balapur Branch Parbhani Branch Sengaon Branch JawalaBajar Branch Jintur Branch Deulgaon Raja Branch Mantha Branch Jalna Branch Nanded Branch Akola Branch Aurangabad Branch Pandharkawda Branch Yawalmal Branch Dharmabad Branch Selu Branch Bori Branch Degloor Branch Hadgaon Branch Bhaisa Branch Nagpur Branch Wardha Branch Chopada Branch Pune Branch Bhokar Branch

CHAPTER 2


mailto:[email protected]


REVIEW OF LITERATURE

LITERATURE REVIEW:

1. Journal Name: Housing Finance in India: Development, Growth and Policy

implications

Volume number 1 (1)

Edition- 2 (2008)

Page number- 171

Author name- Dr. Ashwani Kumar Bhalla, Dr. Pushpinder Singh Gill, Dr. Parvinder

Arora

Abstract

Housing Finance is a high flying sector these days and is tipped to grow at a

phenomenal 36% P.a. Banks and financial institutions have brought sea changes in

their strategies and there is shift from sellers market to buyers market. Liberal tax

incentives by the govt. low and competitive interest rates for housing finance has

made this sector as red hot sector. Keeping in view the importance of housing finance

in solving the housing problem this paper analyse the performance of this sector while

identifying the its problems and challenges. A look has also been given to the future

prospects of this sector.

2. Journal Name: Markets and housing finance

Volume number 18

Edition- 3

Page number- 257-274

Author name- Veronica Cacdac Warnock, Francis E. Warnock

Abstract-



We examine the extent to which markets enable the provision of housing

finance across a wide range of countries. Housing is a major purchase requiring long-

term financing, and the factors that are associated with well-functioning housing

finance systems are those that enable the provision of long-term finance. Across all

countries, controlling for country size, we find that countries with stronger legal rights

for borrowers and lenders (through collateral and bankruptcy laws), deeper credit

information systems, and a more stable macroeconomic environment have deeper

housing finance systems. These same factors also help explain the variation in

housing finance across emerging market economies. Across developed countries,

which tend to have low macroeconomic volatility and relatively extensive credit

information systems, variation in the strength of legal rights helps explain the extent

of housing finance. We also examine another potential factor—the existence of

sizeable government securities markets—that might enable the development of

emerging markets’ housing finance systems, but we find no evidence supporting that

3. Journal Name: Housing microfinance in post-conflict Angola: overcoming

socioeconomic exclusion through land tenure and access to credit

Volume number 3

Edition- 1

Page number- 9-15

Author name- Cain, A

Abstract-

Development Workshop, human settlements NGO has been working in

Angola since 1981 and is developing approaches to post-conflict shelter challenges.

Two linked programmes of the NGO are discussed in this paper: the KixiCasa housing

microfinance model, aiming to address the issue of economic exclusion through the

provision of microcredit and together with the Ministry of Urbanism and

Environment, the land management strategy, using upgradeable occupancy rights and

land pooling to facilitate the regularization and securing of tenure rights for the poor.

CHAPTER 3



RESEARCH METHODOLOGY

Research in common parlance refers to search for knowledge. Research is an

academic activity and as such it is used in a technical sense. According to Clifford

Woody, research comprises defining and redefining problems, formulating hypothesis

or suggesting solutions, collecting, organizing and evaluating data, making deductions

and research conclusions to determine whether they fit the formulating hypothesis.

3.1) OBJECTIVES OF THE STUDY:

The study specifically aims at:

1. Studying the importance of housing, demand for housing and house finance in

India.

2. Evaluation of the role of financing of houses in Yavatmal.

3. To identify the popular schemes of Peoples cooperative bank, Hingoli.

4. To analyze the trends in housing finance.

5. To ascertain the problems of borrowers for availing housing loans.

6. To evaluate the impact of tax considerations on housing finance.

7. Measuring the service quality being provided by Peoples cooperative bank,

Hingoli.

3.2) RESEARCH DESIGN:

A Questionnaire is used to do the research



Exploratory Research design

Focus Group

Primary data analysis

3.3) DATA COLLECTION:

Data means information required in the research. There are two types of data

sources, which have been helpful to carry out the research these, are as follows:

Primary data

Primary data are those, which are collected a fresh and for the first time. Primary

data was collected through questionnaires & Interview schedule.

Secondary data

Secondary data are those, which have already been collected by publication of

Governments, Periodicals of organization, newspaper, books, & internet etc.

Questionnaire

The questionnaire is one of the many ways through which data can be collected.

Questionnaire is widely used by researcher to collect information on related study.

Questionnaire is a method of getting data about respondent by asking them than by

observing and sampling their behavior. Questionnaire should be standardized, its

anonymity can be assured and questionnaire should be design to meet the simple and

native language to allow the use of large sample.

Sampling Universe



The first step in devolving any sample design is to clearly define the set of

objects, technically called the universe.

Sample universe includes investors of Peoples cooperative bank, Hingoli.

Sample Technique

Sampling technique used for selection of sample non-probability,

‘Convenience sampling technique’.

A convenience sample is that where the sample is selected, in part or only a

limited attempt, to ensure that this sample is an accurate representation of some larger

group of population. The classic example of convenience sample is standing at

shopping mall and selecting shoppers as they walk by to fill out a survey. A

convenience sample chooses the individuals that are easiest to reach or sampling that

is done easy. Hence, convenience sampling was used for the research.

Sample Size

This refers to the number of item to be selected from the universe to constitute a

sample. The sample size is 50. These users are the families.

3.4) LIMITATION:

The limitation of this study is that sometimes the male or female respondents

may not give the proper and correct information regarding the Training and

Development.



1) The study was limited to People’s co-operative bank, Hingoli, only.

2) Due to limited time & money, it was not peruse to come whole entire, hence

the sample size was 50 respondents.

3) The study was limited to Yavatmal city.

CHAPTER 4

DATA ANALYSIS & INTERPRETATION



The data so collected is scrutinized, tabulated and analyzed by the help of

some statistical tools and techniques and finally used for the study purpose. Following

are the major conclusions are drawn by the researchers.

Table No. 4.1 RESPONDENTS HAVING OWN HOME

Sr. No Opinion Number of

respondents

Percentage

1 Yes 70 70

2 No 30 30

TOTAL 100 100

Sources: Primary Data

Graph no. 4.1 RESPONDENTS HAVING OWN HOME

70%

30%

Number of respondents

YesNo

Interpretation

From above data it can be concluded that, 70% of the respondents are having

their own home and 30% are not having their own home they living in the rent

houses.

Table No. 4.2 AWARENESS ABOUT THE HOME LOAN PRODUCT OF

FOLLOWING BANK



Sr. No Bank Number of respondents Percentage

1 ICICI 20 20

2 HDFC 30 30

3 PNB 20 20

4 Other 30 30

TOTAL 100 100


Graph no. 4.2 AWARENESS ABOUT THE HOME LOAN PRODUCT OF

FOLLOWING BANK

20%

30%

20%

30%

Awareness about home loan

ICICIHDFCPNBOther

Interpretation

From above data it can be concluded that, 30% of the respondent mostly aware

about the home loan scheme of HDFC, 20% respondents aware each of ICICI and

PNB and 30% respondents other banks.

In other State bank of India, central bank of India, bank of Maharashtra is involved.

Table No. 4.3 RESPONDENTS TAKEN HOME LOAN OR NOT

Sr. No Option Number of respondents Percentage

1 Yes 100 100



2 No 0 0

TOTAL 100 100


Graph no. 4. 3 RESPONDENTS TAKEN HOME LOAN OR NOT

100

Home loan taken

YesNo

Interpretation

From above data it can be concluded that, 100% respondents are taken the

home loan and 0% respondents have not taken the home loan.

Table No. 4.4 FACTOR INFLUENCING RESPODENTS TO TAKEN LOAN

Sr. No Factor Number of Percentage



respondents

1 Interest rate 16 16

2 Service provide by people’s coop.

bank, hingoli

43 43

3 Payback period 20 20

4 Other 21 21

TOTAL 100 100


Graph no. 4. 4 FACTOR INFLUENCING RESPODENTS TO TAKEN LOAN

16

43

20

21

Interest rateService provide by people’s coop. bank, hingoliPayback periodOther

Interpretation

From above data it can be concluded that, 43% respondents have said the

factor of taking home loan to service provided by People’s cooperative Bank, Hingoli,

16% respondents said interest rates, 20% respondents give payback period reason and

21% respondents said other.

In other State bank of India, central bank of India, bank of Maharashtra is involved.

Table No. 4.5 IN FUTURE, RESPONDENTS WOULD BE INTERESTED TO

TAKE HOME LOAN



Sr. No Opinion Number of

respondents

Percentage

1 Yes 55 55

2 N0 45 45

TOTAL 100 100


Table No. 4.5 IN FUTURE, RESPONDENTS WOULD BE INTERESTED TO

TAKE HOME LOAN

55%

45%

Number of respondents

Yes N0

Interpretation

From above data it can be concluded that, 55% of the respondents are would

be take loan in future, and 45% respondents don’t want to take home loan in future.

Table No. 4.6 WHEN HAVE TAKEN LOAN BY RESPONDENTS

Sr. No Time Number of Percentage



respondents

1 Before 1 year 33 33

2 Before 2-3 years 46 46

3 Before more than 3 years 21 21

TOTAL 100 100


Graph no. 4.6 WHEN HAVE TAKEN LOAN BY RESPONDENTS

33

46

21

time of loan taken

Before 1 yearBefore 2-3 yearsBefore more than 3 years

Interpretation

From above data it can be concluded that, the time is shown when respondents

taken home from the people’s cooperative bank, Hingoli

Before 1 year- 33%

Before 2-3 years- 46%

Before more 3 years- 21%

Table No. 4.7 THE AMOUNT OF HOUSING LOAN TAKEN BY THE

RESPONDENTS



Sr. No Amount Number of

respondents

Percentage

1 5-10 Lacs 69 69

2 10-15 lac 20 20

3 More than 15 lacs 11 11

TOTAL 100 100


Graph no. 4.7 THE AMOUNT OF HOUSING LOAN TAKEN BY THE

RESPONDENTS

69

20

11

Amount of loan taken

5-10 Lacs10-15 lacMore than 15 lacs

Interpretation

From above data it can be concluded that, 69% of the respondents are said 5-

10 lacs loan taken from the bank of People’s Cooperative, Hingoli, 20% said 10-15

lacs, and 11% respondents said more than 15 lacs.

Table No. 4.8 REASON OF TAKING LOAN FROM PEOPLE’S COOPERATIVE

BANK HINGOLI



Sr. No Reason Number of respondents Percentage

1 Faster processing 39 39

2 Interest rates 31 31

3 Brand image of the bank 21 21

4 other 09 09

TOTAL 100 100


Graph no. 4.8 REASON OF TAKING LOAN FROM PEOPLE’S COOPERATIVE

BANK HINGOLI

39

31

21

9

Reason for taking loan

Faster processingInterest ratesBrand image of the bankother

Interpretation

From above data it can be concluded that, 39% of the respondents are said

reason for taking loan from people’s coop. bank, Hingoli is fast processing and 31%

are said to interest rates of the bank, 21% said brand image of the bank and 09% said

other reason.

Table No. 4.9 RATING OF THE INTEREST RATES CHARGE BY THE PEOPLES

COOPERATIVE BANK HINGOLI



Sr. No Rating Number of

respondents

Percentage

1 Highly satisfactory 31 31

2 Satisfactory 29 29

3 Averagely satisfactory 22 22

4 dissatisfactory 18 18

TOTAL 100 100


Graph no. 4.9 RATING OF THE INTEREST RATES CHARGE BY THE PEOPLES


31

29

22

18

rating of interest rates

Highly satisfactorySatisfactoryAveragely satisfactorydissatisfactory

Interpretation

From above data it can be concluded that, 31% of the respondents give rating

as highly satisfactory to interest rates of People’s cooperative Bank, Hingoli, 29%

give satisfactory, 22% rate averagely satisfactory and 18% give dissatisfactory.

Table No. 4.10 RATING OF THE EMI OF PEOPLES COOPERATIVE BANK

HINGOLI

Sr. No Rating Number of respondents Percentage







TOTAL 100 100


Graph no. 4.10 RATING OF THE EMI OF PEOPLES COOPERATIVE BANK

HINGOLI

28%

22%15%

35%

rating of EMIHighly satisfactory SatisfactoryAveragely satisfactory dissatisfactory

Interpretation


as highly satisfactory to EMI of People’s cooperative Bank, Hingoli, 22% give

satisfactory, 15% rate averagely satisfactory and 35% give dissatisfactory.

Table No. 4.11 RATING OF THE DOCUMENTATION PROCEDURES OF

PEOPLES COOPERATIVE BANK HINGOLI








TOTAL 100 100


Graph no. 4.11 RATING OF THE DOCUMENTATION PROCEDURES OF

PEOPLES COOPERATIVE BANK HINGOLI

28

2215

35

rating about deocumentry


Interpretation


as highly satisfactory to documentary procedures of People’s cooperative Bank,

Hingoli, 22% give satisfactory, 15% rate averagely satisfactory and 35% give

dissatisfactory.

Table No. 4.12 RATING OF THE SANCTIONING PROCEDURES OF PEOPLES









TOTAL 100 100


Graph no. 4.12 RATING OF THE SANCTIONING PROCEDURES OF PEOPLES


20

18

16

35

rating of sanctioning procedures


Interpretation


as highly satisfactory to sanctioning procedures of People’s cooperative Bank,

Hingoli, 18% give satisfactory, 16% rate averagely satisfactory and 35% give

dissatisfactory.

Table No. 4.13 SATISFACTION FROM HOUSING FINANCE OF PEOPLE’S

COOPERATIVE BANK, HINGOLI

Sr. No Opinion Number of respondents Percentage



1 Yes 55 55

2 N0 45 45

TOTAL 100 100


Table No. 4.13 SATISFACTION FROM HOUSING FINANCE OF PEOPLE’S

COOPERATIVE BANK, HINGOLI

55%

45%

satisfactionYes N0

Interpretation

From above data it can be concluded that, 55% of the respondents are satisfied

with home loan of People’s cooperative Bank, Hingoli and 45% not satisfied with

taking home loan of the bank.

Table No. 4.14 DURATION PREFERENCES OF LOAN OF PEOPLE’S


Sr. No Duration Number of respondents Percentage



1 Below 5 years 39 39

2 5-10 years 31 31

3 10-15 years 21 21

4 15-20 years 09 09

TOTAL 100 100


Graph no. 4.14 DURATION PREFERENCES OF LOAN OF PEOPLE’S


39

31

21

9

Reason for taking loan

Below 5 years5-10 years10-15 years15-20 years

Interpretation

From above data it can be concluded that, 39% of the respondents prefer

below 5 years duration of EMI loan from people’s coop. bank, Hingoli and 31% are

prefer 5-10 years, 21% prefer 10-15 years and 09% prefer 15-20 years.

CHAPTER 5

FINDINGS & CONSLUSIONS



1. In this research process, 70% respondents are their own home.

2. In this research process, researcher found that, mostly respondents have aware

about HDFC home loan.

3. 70% respondents having taken home loans from bank.

4. From that research process, 43% respondents said the factor influencing to taking

home loan that service provided by the People’s cooperative Bank, Hingoli.

5. In this research process, in future 55% respondents would be home loan taken

from the any bank.

6. In between the respondents who taken the home loan from a bank, they mostly

said that, they took loan before 2-3 years ago.

7. In the research process, 69% respondents taken the loan amount of 5-10 lacs most.

8. In this research process, mostly respondents said the reason to take the loan from

People’s cooperative bank, Hingoli is to faster processing.

9. In the rating par, respondents rate the interest rate of the bank is highly

satisfactory.

10. In another part of EMI rating, mostly respondents rate the EMI as highly

satisfactory.

11. In this research process, respondents rate the documentation procedures as highly

satisfactory.

12. In this research process, respondents rate the sanctioning procedures as

satisfactory.

13. Mostly respondents are satisfied with taking home loan from the bank of People’s

cooperative bank, Hingoli.

14. Duration that prefer by the respondents mostly is below 5 years.



CHAPTER 6

SUGGESTIONS

1. Bank should try to concentrate on the satisfaction level of the loan taker.



2. Bank should decrease the problem in case of the documentary, sanctioning, and

EMI.

3. Bank should try to sale more loans by reducing the interest rates.

4. They should try to provide loan schemes to the customers.

5. Bank should try to open more branches at tahsil level and other district level

where it haven’t branch.

6. Bank should try to create advertisement about loan schemes of the bank.

7. Bank should try to aware the customer about the all procedures and documentary

before the loan taken.

8. Bank should try to give more emphasize on the loan scheme.

CHAPTER 7

HYPOTHESIS TESTING



1. Customers are satisfied by the housing finance facilities provided by the

people’s co-operative bank.

Satisfaction from housing finance of people’s cooperative bank, hingoli


1 Yes 78 78

2 N0 22 22

TOTAL 100 100

78%

22%

satisfaction

Yes N0

From above data it , 78% of the respondents are satisfied with home

loan of People’s cooperative Bank, Hingoli and 28% not satisfied with taking

home loan of the bank. Alternate hypothesis is proved.

2. The process of loan and documentation are easy and bank approved more

number of proposals.



Process of loan and documentation are easy of People’s co-operative

bank, Hingoli


1 Yes 55 55

2 N0 45 45

TOTAL 100 100

55%

45%

satisfaction

Yes N0

From above data it , 55% of the respondents are said yes to lengthy

documentation with home loan of People’s cooperative Bank, Hingoli and

45% said no. Alternate hypothesis is proved.


Full Dissertation

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