CONSUMER EXPECTATION AND PERCEPTION

ABOUT HOME LOAN- LOAN CLINIC

A report Submitted in partial fulfilment for the

Requirement of Dissertation.

FACULTY GUIDE
STUDENT PROFILE
Dr Smrita Sinha
UMANG MEHRA
MBA (M&S) SECTION: - C

A0102215149

TABLE OF CONTENT
CHAPTER

CONTENT

PAGE NO.

INTRODUCTION

2-9

LITERATURE REVIEW

10-13

INTRODUCTION TO HOME LOANs:Home is a dream of an individual. It acts as the shelter to the individuals thus is a psychological need (Maslow
need hierarchy theory). A home loan may be defined as the "A SUM OF MONEY BORROWED FROM AN
AUTHORISED FINANCIAL INSTITUTION OR COMMERCIAL BANK TO PURCHASE A HOUSE OR
CONSTRUCT THE HOUSE". In such type of loan the property is mortgaged to the lender which act as the
security till the repayment of loan is done. The bank or financial institute will hold the title or the deed to the
property till the loan has been paid back with the interest due for it.
TYPES OF HOME LOAN:Home loans act as a popular and attractive way for individuals who want to purchase their dream house. In
INDIA over the last few decades the demand for home loans had increased rapidly. Every day, numerous
individuals are apply for home loans to own a perfect adore for themselves. Such a loan benefits does provide
with lot of value added beneficiaries like TAX BENEFITS. As we know a market is full of individual consumers
who had different demands and consumption of same product or different products. So, does facilitators of
HOME LOAN provides with different types of home loan services to their customers which are as follows:1) LAND PURCHASE LOAN: - Such types of loan are issued or taken to buy plot of land on which the borrower
wishes to construct his/her house. Most of the financial institutions or commercial banks provide up to 85
percent of the price of the land. Such loans can be availed for residential as well as for investment purpose.
2) HOME PURCHASE LOAN: - Such type of loan is most commonly type of home loan. Such types of loan are
issued to the borrower to purchase a new house or new residential property or an old house from its previous
owner. Most of the financial institutions or commercial banks provide up to 85 percent of the market value of the
house. Such loans are issued either on fixed interest rate or floating interest rate or as a hybrid loan.
3) HOME CONSTRUCTION LOAN: - These loans are issued to those who want to construct a house according
to their house according to their own wish rather than a readymade flat. The process of issuing such loan is a
bit different from process of availing common type of housing loan.
4) HOME EXPANSION/ EXTENSION LOAN: - Such type of loan are beneficial and issued when a borrower
want to expand or extend his existing house. It includes alteration in current structure to either add extra floor,
room or enclosed balcony etc.
5) HOME IMPROVEMENT LOAN: - Such loans are availed by those individuals who own a house but lack
funds to renovate it. All kinds of renovations and repair works can be financed from internal and external
painting, external repair works, electrical work, to waterproofing etc.
6) HOME CONVERSION LOAN: - The individuals who already purchased a house by availing home loan but
now want to buy and move to another home opts for such loan. Such loan enables the transfer of existing loan
to the new house. Such type of loan is considered to be very expensive.
7) NRI HOME LOAN: - Such types of loan are designed especially to assist the NON-RESIDENTS in acquiring
the finance to buy residential property in INDIA.
8) BALANCE TRANSFER LOAN: - Balance transfer option enables transfer of balance from one bank to
another bank. This is usually done to repay the remaining amount of interest at a lower interest rate or when
the service provided by the bankers fails to match customer expectation and perception.

9) STAMP DUTY LOAN: - such loans are provided to pay off the stamp duty charges which are levied on the
property.
10) BRIDGED LOAN: - Such types of loan are generally borrowed by those individuals who already own a
residential property but are planning or willing to provide a new house. It helps borrowers to fund the purchase
of the new house until a buyer is identified for the old house.
ABOUT INVESTORS CLINIC
Honey Katiyal had desire to stand on its own and not too dependent on his parents. He was 21 when he was
encouraged to start something himself. It all started when he arrived in the capital in 1997 to pursue his singles
Aurobindo College.
Shortly, he realized that there is immense potential and growth in REAL ESTATE sector in INDIA. On, 7th
December 2006, he gets into he get into real estate arena and launched INVESTORS CLINIC- a real estate
consultancy firm. At, the initial level the organization had office of 250 sf. ft., 25 professionals, Rs. 60 lakh
revenue, 3 and 5 developers and projects respectively. It was a start-up that started with an aim to revolutionize
the real estate sector.
With Investors Clinic, Honey Katiyal virtually transformed the face of the real estate industry in India by bringing
professionalism in the sector. Highly perceptive and instinctive in business, Mr. Katiyal heard that buyers and
builders crave a professional channel depend to connect and do business. There was a significant difference
between the two when it came to real estate service providers. Buyers wanted someone whose advice they
could trust and builders wanted someone to sell and market their projects so they can focus on construction
projects. The property brokers were the only option for buyers at the time, but certainly not the best. Honey
Katiyal realized the need for dependent real estate professionals and not just mere brokers to fill this space
between buyers and sellers. These professionals have addressed the issues and concerns of buyers, served
them with a catalo of goods, guided them through the available options, offered them the best prices and deals
on behalf of accredited manufacturers and facilitated the process purchase and acquisition of property, while
safeguarding the buyers' interests.
Since then, the investors Clinique stand impressive performance figures it has achieved. It is a known fact that
investors Clinic is a frontier settler among real estate professionals consulting companies in India. According to
latest reports, the value of the Investors Clinic brand is valued at more than 2000 Cr with a turnover of Rs 200+
Cr. The company is also known for being the highest tax payer in the primary real estate services. With a
strong network of 34 offices across India, more than 1.5 lakh sq. Ft. From the office space and our global foray
with an international presence in Dubai, Singapore and the United States, investors Clinic strengthens its reach
and presence very quickly.
Investors Clinic has a proven track record of working with more than 200 leading developers including DLF, 3C,
Jaypee, Unitech, Wave, Paras, Amrapali, Rudra, Supertech, Mahagun, Lodha, Sobha, Adani, Nirmal, HPS,
Capital Group, JMD, Mantri, QVC, Aditya, Sunworld, Indiabulls, Puri, Ajnara, API Ansal, SRS, Era, BPTP,
Earthcon, SDS, Kanopy, Raheja, Vatika, ILD, Omaxe, IREO, Sare, Emaar, KDP, Pareena, Gaursons, Ace
Group, LOTUS Greens Spaze, Silverglades, WTC, Home & soul etc.
The company is committed to providing a best -in- class customer service through world-class technology ,
processes and response mechanisms. We provide up -to- the- minute updates to the value of the property
appreciation the launch of new property.

MISSION & VISION

VISION
With its focus towards enabling availability of real estate solutions, Investors Clinic was established, keeping in
mind the need to create a trustworthy partner in wealth creation.
Being India's largest real estate services organization, at Investors Clinic, our vision is to facilitate asset
creation for our end customers and enable peace & prosperity for them.
MISSION
Their mission is to enable wealth creation for their customers and help them benefit from burgeoning
opportunities in the real estate segment. In continuation to effort in this direction, Investors Clinic group is
helping their customer community in terms of presenting a distinctive experience for buying real estate. They
are deeply engaged towards driving our customer priorities in the right direction.
In order to realize their vision and mission, they are equipped with more than 1,00,000 sq ft. of office space.
This includes, 30,000 sq. ft in Noida with seating capacity of 700 people and an additional 10,000 sq ft in
Gurgaon.Rest of 60,000 sq ft. is situated in Mumbai / Bangalore / Chandigarh etc.
LOAN CLINIC
A team of HOME LOAN professionals who lend end to end support for processing home loans from leading
hands which eventually includes the following:1) ICICI
2) HDFC
3) CANARA
4) LIC
5) HFL
6) INDIABULLS
7) TATA CAPITAL
8) SBI
9) BANK OF MAHARASHTRA
It is the SUBSIDIARY of INVESTORS CLINIC which was propounded with ultimate aim of providing easy and
quick home loan service to its client and others as well. The company basically deals with home loan services

and financing along with property loan that is loan against property. They started its operations soon after
commencement of operations of INVESTORS CLINIC.
FUNCTIONS of different departments in LOAN CLINIC
MARKETING and SALES
1. LEAD GENERATION:- Considered to be Main function of this department whereby the lead of customers
requiring home loan is generated from various sources in order to reach them and provide them with the
demanded services. There are basically two sources of LEAD GENERATION when it comes to the loan clinic
organization which are as follows:(a) INTERNAL SOURCES:- Under such source the lead is generated via internally whereby list of customers
who are purchasing house from investors clinic are send to the Loan clinic department where by this
department communicate them about it or not they require home loan services for buying the house.
(b) EXTERNAL SOURCES:- Under such source leads are generated externally like personal contact, contact
with builders, faith and fairs, DSA, sub DSA, brokers and sub brokers etc.
2. MEETING WITH CLIENTS:- Once the lead is generated next function of marketing and sales department is
meeting clients and communicating them about all terms and conditions, procedures, legal formalities, bank
interest rates and benefits and clearing all doubts of customers.
3. FILE PICK:- once the client is convinced and ready to accept the services of loan clinic, this process comes
into picture where by all the required documents need to be collected by the borrower the following are the
documents which are required under different categories of borrowers dealt by this subsidiary firm:IN CASE OF SALARIED:1. Pan card copy
2. Address proof
3. Three month salary slip
4. Six month salary account bank statement
5. Photograph
6. Latest 2 yr FORM-16 with ITR (income tax return)
7. Loan schedule in case of any loan running
8. Processing fees check ( note:- processing fees is generally .5% or different depend upon different banks and
it also include service tax)

Co- Applicant documents:1. Pan card

2. Address proof
3. Photograph
Special Consideration in following case:* in case Customer failed to provide FORM 16 they need to provide form 26 AS which is available online
* in case Co-Applicant act as guarantor of loan for the borrower than in that particular case all the above
mentioned documents (written above co-applicant documents) are required.

IN CASE OF SELF EMPLOYED PROFESSIONALS

1. PAN CARD
2. Application form duly signed by applicant along with his photograph
3. Identity, age and residential proofs
4. Last 6 months bank statements
5. Last 3 months Salary-slips
6. Processing fee cheque ( note:- processing fees is generally .5% or different
depend upon different banks and it also include service tax)
7. Form 16 / Income Tax Returns
8. Education qualification certificate and proof of business existence
9. Last 3 years Income Tax Returns with computation of Income
10. Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
Co- Applicant documents:1. Pan card
2. Address proof
3. Photograph
Special Consideration in following case:* in case Customer failed to provide FORM 16 they need to provide form 26 AS
which is available online

* in case Co-Applicant act as guarantor of loan for the borrower than in that
particular case all the above mentioned documents (written above co-applicant
documents) are required.

IN CASE OF SELF EMPLOYED NON- PROFESSIONALS

1. PAN CARD
2. Application form duly signed by applicant along with his photograph
3. Identity, age and residential proofs
4. Last 6 months bank statements
5. Last 3 months Salary-slips
6. Processing fee cheque ( note:- processing fees is generally .5% or different
depend upon different banks and it also include service tax)
7. Form 16 / Income Tax Returns
8. Education qualification certificate and proof of business existence
9. Last 3 years Income Tax Returns with computation of Income
10. Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
11. Proof of business existence
12. Business profile

Co- Applicant documents:1. Pan card

2. Address proof
3. Photograph
Special Consideration in following case:* in case Customer failed to provide FORM 16 they need to provide form 26 AS
which is available online
* in case Co-Applicant act as guarantor of loan for the borrower than in that
particular case all the above mentioned documents (written above co-applicant
documents) are required.

OPERATIONS DEPARTMENT

1. SENT THE FILE TO BANK:- Once the file is picked of the client there begins the
responsibility of operations department where they need to correctly analyze all the
documents after which they need to send it to bank for further process.

2. LOGIN:- Once the required documents are delivered to the bank the bank analyze
the documents of their own and give customers their respective login id which act
the identification proof for them. Login number is different for different customers
and it act as the instrument which help the borrower to track the process.

3. SANCTION:- On the basis of various parameters and documents submitted, the

bank will assess
the loan application. The bank verifies all information, including
your existing residential address, place of employment, the employer's credentials,
residency and work phone numbers. Representatives are sent to your place of work
or residence to verify the details. If the bank is not convinced of your credentials,
your application may get rejected. If satisfied, it sanctions the loan. Once the loan is
sanctioned, the bank sends you an offer letter stating the details of your home loan
as the loan amount, loan term, the general terms and conditions of the loan,
interest rates, etc. . If you agree with what is stated in the letter of offer from the
bank, you must sign a double letter from the same to the bank's records.

4. DISBURSEMENT:- An innovative financial institution May Provide Non loan

package , more suitable Sie fits to your needs . In ADDITION Their Application
Process can be quicker and hassle free. A Time Whether you -have Identified the
property Whether you want to buy , applied to pay your Home Loan and Home Loan
is sanctioned , you will receive an offer letter That you Must signatory and Resubmit to Your Bank for bank records .The steps involved in the disbursement of
Home Loan:

Documents for disbursement : Once you have submitted a signed letter duplicate of
the offer letter to the bank , depending on the nature of the transaction (purchase
of the builder / resale , etc.) , the agent will inform you property documents required
for the loan disbursement.
Report from the lawyer of documents: Your documents relating to property such as
bill of sale, certificate of no objection , reception own contributions , etc. would be
examined by an expert or lawyer. The report of the lawyer is giving a green light if
the documents are clear, or it can request a new set of documents.

Date and amount for the down payment : Once the bank or financial institution
receives the advice of his lawyer that the legal process has been completed and the
loan documents are in order , the officer will inform you of the date and amount of
the first instalment or deposit you have to do.
Transaction documents: In addition to the ownership documents , you must sign
transaction documents, including the credit facility application form and other
documents required for the disbursement of the facility.
Home Loan disbursement: The approved amount is paid in one or more subject to
legal and technical verification of ownership and other terms and conditions
mentioned in the sanction letter.
Each bank performs legal control over your documents to confirm their authenticity.
Banks are extremely cautious on the property they intend to finance. As a buyer, it
gives you the confidence that your property has been inspected by experts and you
buy an asset that is legally clear and technically sound.
Sometimes the bank may require you to pay for legal verification. However, most
banks cover costs in the (treatment) upfront fee you pay. Once all the processes
mentioned above, the borrower has the right to take the money lender's party. EMI
payments begin only after the entire loan amount sanctioned is drawn. Until that
time, the customer is expected to pay simple interest.

LITERATURE REVIEW:-

Summary:-

After going through previous studies on home loan I came up with following
conclusions:-

1. There is growth in Home Loan after 2001

2. Home Loan have an inverse relationship with the rate of interest i.e. with the
decrease in rate of interest the demand for home loans tends to increase (OJHA
1987).

3. People are motivated and borrowing home loans than private mortgage insurance
(BERSTAIN 2008).

4. Government is taking various initiatives to encourage people to go towards home

loans (HAAVIO, KAUPPI 2000).
5. There are also some problems associated with home loans like time factor that is
filing of application to disbursement, individuals have their own specific needs from
these home loans which are not fulfilled (LACOUR MICHEAL 2007).
6. SBI provide a very low interest on home loans than its competitors( SBI MAY
2000).

CONCLUSION drawn from literature reviews:BERSTAIN DAVID(2009) examined in his study that during the period of 2001 to
2008 there was increase in use of home loans as compared to private mortgage
insurance. He further divided his full study on following four sections:-

10

Section 1:- Describes why people are going more for home loans than private
mortgage insurance and the main reason behind this is that now home loans market
provide piggybank loans to those individuals who dont have 20% of down payment.
Section 2:- Describe about various factors which had contributed towards the
growth of home loans and also describe about the risk of shifting towards home
equity market without private mortgage insurance coverage. Private mortgage
insurance can protect leaders from most losses say up to 80% of LTV (loan to value
ratio) and the absence of private mortgage insurance will result in losses in an
economy.
Section 3:- Describe about the measures in changes of types of loans. As, per this
there was sharp increase in the prevalence of owner- occupied properties with
multiple mortgages among properties with newly originated first mortgages.
Section 4:- Describes about the financial status of the of single-lien and multiple-lien
households and for this he have taken the survey of consumer finance and show
that the financial position is more weaker in multiple loan in compared to that of the
single.

VANDELL, KERRY D (2008) came up with the analysis of price factor of home loan.
They described that from the period of 1998 to 2008 firstly there was sharp rise in
the price of home loans and then suddenly drop down. The reason behind this was
economic fundamentals, the problem was not subprime lending per se, but the
Feds dramatic reduction, than increase in rate of interest during the mid 2000, the
housing boom was concentrated in those markets with significant supply-side
restrictions, which tend to be more price volatile. The problem was not in excess of
supply of credit in aggregate or increase in subprime per se, but rather in increased
or reduced presence of certain other mortgage products.

LA COURR,MICHEAL(2007) described about the various factors affected the growth

or increase in the level of ANNUAL PERCENTAGES RATES (APR) spread reporting
during 2005 over 2004. There were 3 main factors which were observed which are
as follows:

Change in leader business practices

Change in risk profile of borrowers
Change in yield curve environment.
The outcome was after controlling the mix of loan types, credit risk factors and the
yield curve there were no significant increase in reportable volume for loans
originated directly by leaders during 2005. Even Though there was wholesale
organizations did significantly increased. This research paper also predicted that
2006 results will continue to show an increase in percentage of loans that are higher
priced when final numbers are released in September 2007.

11

LA COUR MICHEAL(2006) examined the home purchase mortgage product

preferences of LMI households. The objective of the study was to analyse different
factors that determines their influenced their choice of mortgage products, is
different income groups have some specified need to meet particular product. The
role pricing and substitution product play in this segment of the market and do
results vary when loan are borrowed through mortgage brokers? For the analysis of
these questions regression model was taken into consideration and resulted in high
risk reduced loan value. Self employed borrowers choose reduce documented loans
than salaried workers. Usage of the product seems to be more prevalent among
borrowers having considerable funds for down payments and better credit scores.
As far as pricing is concerned multi families requires price premium and larger loan
carry lower rate. When it comes to the factor of time, it was found that government
landings are taking the longest time for the process of home loans.
DR. RANGARAJAN C.(2001) said that financial system in India is hugely built by vast
network of financial institutions and markets over a period of time and particularly
banking sector which accounts for almost two-third of the assets of the organized
financial sector.

HAAVIO, KAUPPI(2000) stated that countries where a maximum proportion of

population lives in owner occupied housing were struggling from high
unemployment rates as compared to the countries where majority of the citizens
lived in private rental housing, which might come off with a suggestion that rental
housing enhances labour mobility. In this study simple two region model was formed
to critically compare housing market to rental market and it also focused on analysis
of how these different arrangements allocate people in space and time. SBI, who
announced to provide home loan for Rs. 2-10 laths at 12.5 percent of interest rate
has taken the interest rate war to a new level in the market. The fact that apart
from lower interest rate the, the interest was calculated on principal amount, which
tends to get reduced every month where as on the other hand rest of the other
financial institutions calculate interest on annual reduction basis.

NARASIMHAM COMMITTEE( 1991) came out with the conclusion that even though
there is rapid progress and growth in the banking sector, but there is decline in
productivity and efficiency of profitability. The committee strongly recommended
taking step for liberalization and deregulation economy to make Indian banking
system more competitive and efficient.

OJHA (1987) in his article "Modern international comparison between productivity

and profitability of the public sector banks in India," he compared the two banks of
the public and private sector on the basis of their employees. He found that Indian
banks like Punjab National Bank and State Bank of India , is in overall decline stage

12

compared to private banks. This demoralized them both because of many reasons
that the international comparison does not give a good impact on national level.

GODSE(1983) in the essay, Looking a Fresh at Banking Productivity he evaluated

the main objective in banking industry is the productivity. He suggested costing of
operations can improve banking productivity, with a little care to capital
expenditure, to achieve their target.

FANNING(1982) in his study undertaken initiative to examine bank productivity of

British banks. He came out with a conclusion that the overall productivity of the UK
based banks had improved because they are seriously implementing their rules as
compared to other banks.

KULKARNI(1979):- In his study "Responsibility for the development and profitability

of banks " he mentioned some aspects that cannot be ignored by banks, namely
costs and benefits . He suggested that banks should try to do some developing
products for its activity at the time of social responsibility, a success.

DEPARTMENT OF BANKING OPERATIONS AND DEVELOPMENT, RBI:- After 1970 a

phase started which showed the expansion of banking activities. This phase has
presented an overall improvement in efficiency operating banks, customer service ,
product and human resources .

BANKING COMMISSION (1972) gives recommendations to banks to modernize and

improvisation of their financial performance after reviewing their operating methods
and procedures. Attention was focused on customers ' related services and credit
procedure etc. In addition, it was observed that at present many efforts are made to
work on the branch of profitability, which is not enough to know the actual value. A
need for integrated financial information system and development costs is needed.

13

RESEARCH METHODOLOGY
PROJECT OBJECTIVE
1.
2.
3.
4.
5.

To
To
To
To
To

study about consumer expectation with respect to home loan

study about consumer perception with respect to home loan
develop gap analysis of the above
understand process of home loan disbursement
study about competitive analysis of all banks with whom Loan Clinic deals with.

RESEARCH DESIGN
The study design is constructed with aim to generate both qualitative and
quantitative form of data. The qualitative data was generated using internet, former
research papers and official websites of different banks. For the generation of
qualitative data questionnaire method was opted which was a CROSS-SECTIONAL
SURVEY DESIGN. Where in questionnaire were sent to clients via email and few
information were also generated through telephonic interview.

SAMPLING
1. SAMPLING METHOD: - The systematic random sampling technique was considered
to select customers from past data and present data of the company.
2. SAMPLING SIZE: - The total number of clients of Loan Clinic department are over
4000 (may be higher) so it was very difficult to consider the whole population. So, a
representative sample of 100 clients was taken into consideration for convenience
whose loans were already disbursed. Due to the factor of time constraint, which
eventually cannot be ignored, sample size of 100 clients were taken into
consideration.
QUESTIONNAIRE DEVELOPMENT AND DESIGN
The scale of SERVQUAL was chosen for the survey instrument from customers. To
assess five dimensions, the twenty-two statements were modified to apply to the
bank. The Bank's clients were asked to indicate their level of agreement for two sets

14

of identical twenty-two statements. A series of questions were distributed to the

client to clarify their expectations about the services of the bank. Another series of
questions were constructed to generate the customer perceptions of services
provided by the firm. A five -point Likert scale was used to assess buildings.
Demographic variables considered in this study were age, gender, monthly
household income and educational qualifications.
TOOLS OF DATA COLLECTION
The tools of data collection a structured questionnaire were emailed to the
disbursed clients in sample size of 100 and at the same time short telephonic
interview were conducted for 20 more clients. For the analysis of data IBM SPSS
STATISTICS was used to drive meaningful inferences.

HYPOTHESIS TESTING
1) H0(NULL)= There is no significant gap between Consumer Expectation and
Perception about tangibility part of service quality of Home Loan.
Ha(ALTERNATIVE)= There is significant gap between Consumer Expectation and
Perception about tangibility part of service quality Consumers of Home Loan.
2) HO(NULL) = There is no significant gap between Consumer Expectation and
Perception about reliability part of service quality of Home Loan.
Ha(ALATERNATIVE)= There is significant gap between Consumer Expectation and
Perception about reliability part of service quality of Home Loan.
3) HO(NULL)= There is no significant gap between Consumer Expectation and
Perception about responsiveness part of service quality of Home Loan.
Ha(ALTERNATIVE)= There is significant gap between Consumer Expectation and
Perception about responsiveness part of service quality of Home Loan
4) HO(NULL)= There is no significant gap between Consumer Expectation and
Perception about awareness part of service quality of Home Loan
Ha(ALTERNATIVE)= There is significant gap between Consumer Expectation and
Perception about awareness part of service quality of Home Loan
5) HO(NULL)= There is no significant gap between Consumer Expectation and
Perception about empathy part of service quality of Home Loan.
Ha(ALTERNATIVE)= There is significant gap between Consumer Expectation and
Perception about empathy part of service quality of Home Loan.

15

RESPONDENTS PROFILE
The respondents were basically from DELHI NCR region and the data has captured basically
respondents of LOAN CLINIC customers.

1. LOCATION OF RESPONDENTS
TABLE 1
City Name

Frequency

Percentage

DELHI

40

40%

NOIDA

30

30%

GHAZIABAD

20

20%

GURGAON

10

10%

TOTAL

100

100%

Four regions were selected for the conduct of the survey. 100 samples were selected on basis
of convenience sampling from above mentioned cities. With Delhi banging the highest
percentage while Gurgaon banging the lowest of all.

2. GENDER OF CUSTOMERS

TABLE 2
Gender
MALE
FEMALE

Frequency
65
35

Percentage
65%
35%

16

TOTAL

100

100%

Out of 100 respondents 65% were male while on contrary to it remaining 35% were
female. This clearly depicts that males have higher saying when it comes to have
decision regarding home loan.

3.AGE GROUP OF CUSTOMERS

TABLE 3
AGE GROUP
18-24
25-30
31-35
36-40
40 AND ABOVE
TOTAL

FREQUENCY
5
25
20
30
20
100

PERCENTAGE
5%
25%
20%
30%
20%
100%

30% of the customers belong to 36-40 age which clearly specifies that customers
with this age are keener on purchasing home as their family tends to increase while
it is least at 18-24 where the customers are on verge of starting their professional
life so their investment is comparatively less. Whereas frequency percentage of 2530 age group was 25% and 20% each for age group of 31-35 and 40 above.
4.ANNUAL INCOME OF CUSTOMERS
TABLE 4
ANNUAL INCOME
20 THOUSAND- 1 LAKH
1 LAKH- 2.5 LAKH
2.5 LAKH- 5 LAKH
5 LAKH- 10 LAKH
10 LAKH ABOVE
TOTAL

FREQUENCY
20
25
17
24
14
100

PERCENTAGE
20%
25%
17%
24%
14%
100%

The above table defines the various incomes of respondents. 20% of respondents
have income less than 1 lakh where as frequency percentage of income of
respondents which lie between 1lakh and 2.5 lakh is 25% which is highest among
all. 17% and 24% are for respondents whose income fall between 2.5 lakh to 5 lakh

17

and 5 lakh to 10 lakh respectively. 10 lakh above income group have frequency
percentage of 14% which is least.

5. PROFESSION OF THE RESPONDENTS

TABLE 5
PROFESSION
EMPLOYED
SELF-EMPLOYED
SELF-EMPLOYED NON
PROFESSIONAL
TOTAL

FREQUENCY
50
30
20

PERCENTAGE
50%
30%
20%

100

100%

The above mentioned table describes about the various profession of the
respondents. Where maximum number of respondents are employed that is 50%
where as self-employed and self-employed non professional which is 30% and 20%
respectively.

18

DATA ANALYSIS AND INTERPRETATION

QUANTITATIVE DATA
1. RELIABILITY OF QUESTIONNAIRE
In order to generate reliability of questionnaire IBM SPSS 23 was used. The reliability
of questionnaire is considered to be an important before further analysis and using
such questionnaire for further data generation and interpretation.

TABLE 6
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's

Standardized

Alpha

Items
.772

N of Items
.950

100

For the analysis of reliability of questionnaire CRONBACHS ALPHA was used which
was generated with the help of SPSS software. As per this method, if the generated
Cronbachs alpha is greater than .7 (standard value) than the questionnaire is said
to be reliable. As, in the above table it is clearly shown that generated value of
cronbachs alpha is .772 which is greater than .7 than it is considered to be positive.

19

2. CONSUMER SATISFACTION RESULT

(A)TANGIBILITY

TABLE 7
EXPECTATION Descriptive Statistics

TABLE 8

Std.
PERCEPTION
Descriptive
Statistics
QUESTIONS
N
Mean
Deviation

QUESTIONS

N
100

Mean
4.67

Std.
1.557
Deviation

100
100

4.78
3.83

1.379
1.801

100
100

4.67
3.75

1.435
1.603

3.Employees
of your
4.
The appearance
ofbank
the are

100

4.00

2.000

well dressed
and is
appear
neat
physical
facilities
kept with

100

3.75

1.913

4. The
of the
the
typeappearance
of service provided.

100

3.85

1.913

1. Up-to-date equipments and

instrument facility of your bank.
1. Up-to-date
equipments
2.Banks
physical
facilities and
are
instrument
facility of your bank.
visually
appealing
2.Banks physical
facilities
are
3.Employees
of your
bank are
visually
appealing
well
dressed
and appear neat

physical facilities is kept with

the type
of service
Valid
N (list
wise) provided.

100

Valid N (list wise)

100

The above two tables describes about the TANGABILITY part of SERVOQUAL model. The
table 7 describes about the mean and standard deviation of consumer expectation about
tangibility part of service quality dimension of home loan services in different banks which
loan clinic deals with whereas table 8 describes about the mean and standard deviation of
consumer perception about tangibility part of service quality dimension of home loan services in
different banks which loan clinic deals with.
TABLE 9

20

CONSUMER SATISFACTION WITH RESPECT TO TANGABILITY

QUESTIONS

PERCEPTION

MINUS

EXPECTATION

SATISFACTION

MEAN

(-)

MEAN

VALUE
.11

Up-to-date equipments
4.78

and instrument facility

(-)

4.67

of your bank

.84

Banks physical
4.67

facilities are visually

(-)

3.83

appealing

.25

Employees of your
4.00

bank are well dressed

(-)

3.75

and appear neat

.10

The appearance of the

physical facilities is kept

3.85

(-)

3.75

with the type of service

provided.

The above table clearly specifies that companies managed to exceed consumer expectation and
managed to provide service quality which fulfilled consumer perception in all the above
mentioned areas of tangibility dimension of service quality as all the values are positive in
nature.

(B) RELIABILITY

TABLE 10
EXPECTATION Descriptive Statistics
Std.

QUESTIONS

Mean

Deviation

5. When banks promise to do

something by a certain time,

100

4.08

1.730

they do.

21

6. When customers have a

problem, banks will show a
sincere interest in solving it.
7. Banks will perform services
right the first time.
8. Banks will provide services at
the time they promises to do so.
9. Banks will insist on error free
records.
Valid N (list wise)

100

4.67

1.557

100

4.17

1.801

100

3.75

1.913

100

4.17

1.801

100

TABLE 11
Descriptive Statistics
N

QUESTIONS

Mean

Std. Deviation

100

4.75

1.422

100

4.92

1.379

100

4.50

1.567

100

4.50

1.382

100

4.75

1.138

5. When banks promise to do

something by a certain time,
they do.
6. When customers have a
problem, banks will show a
sincere interest in solving it.
7. Banks will perform services
right the first time.
8. Banks will provide services at
the time they promises to do so.
9. Banks will insist on error free
records.

100

The above two tables describes about the RELIABILITY part of SERVOQUAL model. The
table 10 describes about the mean and standard deviation of consumer expectation about
reliability part of service quality dimension of home loan services in different banks which
Loan clinic deals with whereas table 11 describes about the mean and standard deviation of
consumer perception about reliability part of service quality dimension of home loan services in
different banks which loan clinic deals with.
TABLE 12
CUSTOMER SATISFACTION WITH RESPECT TO RELIABILITY
22

QUESTIONS

EXPECTATION

MINUS (-)

MEAN
5. When banks

PERCEPTION

SATISFACTION

MEAN

VALUE

(-)

.67

promise to do
something by a

4.75

4.08

certain time, they

do.
6. When customers

(-)

.25

have a problem,
banks will show a

4.92

sincere interest in

4.67

solving it.
7. Banks will

(-)

perform services

.33

4.50

4.17

right the first time.

8. Banks will

(-)

provide services at

.75

4.50

the time they

3.75

promises to do so.
9. Banks will insist

(-)

on error free

.58

4.75

4.17

records.

The above table clearly specifies that companies managed to exceed consumer expectation and
managed to provide service quality which fulfilled consumer perception in all the above
mentioned areas of reliability dimension of service quality as all the values are positive in nature.
(C) RESPONSIVENESS
TABLE 13
EXPECTATION Descriptive Statistics
Std.

Questions

Mean

Deviation

10. Employees of the bank will

tell to its customers exactly
when services will be

100

4.67

1.557

performed.

23

11. Employees of the banks will

give prompt services to

100

4.00

1.706

100

3.58

1.881

100

4.08

1.730

customers.
12. Employees of the banks are
always willing to help
customers.
13. Employees of the bank will
never be too busy to respond to
its customers request.
100

Valid N (list wise)

TABLE 14
PERCEPTION Descriptive Statistics
Std.

Questions

Mean

Deviation

10. Employees of the bank will

tell to its customers exactly
when services will be

100

4.83

1.193

100

4.67

1.497

100

4.92

1.084

100

4.33

1.435

performed.
11. Employees of the banks will
give prompt services to
customers.
12. Employees of the banks are
always willing to help
customers.
13. Employees of the bank will
never be too busy to respond to
its customers request.
Valid N (list wise)

100

The above two tables describes about the RESPONSIVENESS part of SERVOQUAL model.
The table 13 describes about the mean and standard deviation of consumer expectation about
responsiveness part of service quality dimension of home loan services of Loan clinic whereas
table 14 describes about the mean and standard deviation of consumer perception about
responsiveness part of service quality dimension of home loan services of Loan clinic.
TABLE 15
CUSTOMER SATISFACTION WITH RESPECT TO RESPONSIVENESS

24

QUESTIONS

PERCEPTION

MINUS (-)

MEAN
10. Employees of

EXPECTATION

SATISFACTION

MEAN

VALUE

(-)

.16

the bank will tell to

its customers

4.83

exactly when

4.67

services will be
performed.
11. Employees of

(-)

the banks will give

.67

4.67

prompt services to

4.00

customers.
12. Employees of
the banks are

4.92

always willing to

1.34

(-)

3.58

help customers.
13. Employees of

(-)

.25

the bank will never

be too busy to

4.33

4.08

respond to its
customers request.

The above table clearly specifies that companies managed to exceed consumer expectation and
managed to provide service quality which fulfilled consumer perception in all the above
mentioned areas of responsiveness dimension of service quality as all the values are positive in
nature.
(D) ASSURANCE
TABLE 16
Expectation Descriptive Statistics
N

Mean

Std. Deviation

14. When customers

have problems, Banks
should have

100

4.58

1.505

100

3.75

1.913

sympathetic and
reassuring.
15. Customers should
feel safe is transaction
with bank.

25

16. Clients can trust

employees of their

100

4.00

1.809

100

3.83

1.946

banks.
17. Employees of the
banks should be polite.
Valid N (list wise)

100

TABLE 17
Perception Descriptive Statistics
N

Mean

Std. Deviation

100

5.08

1.165

100

4.83

1.528

100

4.75

1.138

100

4.50

1.382

14. When customers

have problems,
Banks should have
sympathetic and
reassuring.
15. Customers
should feel safe is
transaction with
bank.
16. Clients can trust
employees of their
banks.
17. Employees of the
banks should be
polite.
Valid N(list wise)

100

The above two tables describes about the AWARENESS part of SERVOQUAL model. The
table 16 describes about the mean and standard deviation of consumer expectation about
awareness part of service quality dimension of home loan services of Loan clinic whereas table
17 describes about the mean and standard deviation of consumer perception about awareness part
of service quality dimension of home loan services of Loan clinic.
TABLE 18
CONSUMER SATISFACTION WITH RESPECT TO AWARENESS
QUESTIONS

PERCEPTION

MINUS (-)

EXPECTATION

SATISFACTION

26

MEAN

MEAN

14. When

VALUE

(-)

.50

customers have
problems, Banks

5.08

should have

4.58

sympathetic and
reassuring.
15. Customers

(-)

should feel safe is

1.08

4.83

transaction with

3.75

bank.
16. Clients can
trust employees of

4.75

.75

(-)

4.00

their banks.
17. Employees of

(-)

the banks should

.67

4.50

3.83

be polite.

The above table clearly specifies that companies managed to exceed consumer expectation and
managed to provide service quality which fulfilled consumer perception in all the above
mentioned areas of awareness dimension of service quality as all the values are positive in nature
(E) EMPATHY
TABLE 19
EXPECTATION Descriptive Statistics
N

Mean

Std. Deviation

18. Banks gives its

customers
individual

100

3.75

1.913

100

4.83

1.586

100

3.17

1.801

attentions.
19. Banks
operating hours are
convenient for
customers.
20. Employees of
the bank gives
personal services
to its customers

27

21. Bank will have

their customers
best interest at

100

3.75

1.712

100

3.67

1.826

their heart.
22. Employees of
bank will
understand the
specific needs of
their customers.
Valid N (listwise)

100

TABLE 20
PERCEPTION Descriptive Statistics
N

Mean

Std. Deviation

18. Banks gives its

customers
individual

100

4.58

1.311

100

5.08

.900

100

4.42

1.165

100

4.67

.985

attentions.
19. Banks
operating hours are
convenient for
customers.
20. Employees of
the bank gives
personal services
to its customers
21. Bank will have
their customers
best interest at
their heart.

28

22. Employees of
bank will
understand the

100

4.67

1.073

specific needs of
their customers.
Valid N (list wise)

100

The above two tables describes about the EMPATHY part of SERVOQUAL model. The table
19 describes about the mean and standard deviation of consumer expectation about empathy part
of service quality dimension of home loan services of Loan clinic whereas table 20 describes
about the mean and standard deviation of consumer perception about empathy part of service
quality dimension of home loan services of Loan clinic.

TABLE 21
CONSUMER SATISFACTION WITH RESPECT TO EMPATHY
QUESTIONS

PERCEPTION

MINUS (-)

MEAN
18. Banks gives its
customers
individual

EXPECTATION

SATISFACTION

MEAN

VALUE

(-)
4.58

.83
3.75

attentions.
19. Banks
operating hours are
convenient for

(-)
5.08

.25
4.83

customers.
20. Employees of
the bank gives
personal services

4.42

(-)

1.25
3.17

to its customers
21. Bank will have
their customers
best interest at

(-)
4.67

.92
3.75

their heart.

29

22. Employees of

bank will
understand the

4.67

(-)

3.67

specific needs of
their customers.

The above table clearly specifies that companies managed to exceed consumer expectation and
managed to provide service quality which fulfilled consumer perception in all the above
mentioned areas of empathy dimension of service quality as all the values are positive in nature.

QUALITATIVE DATA
SATISFACTION
1.TANGABILITY
QUESTIONS

VALUE

PERCENTAGE

Up-to-date equipments and

.11

8%

.84

65%

.25

19%

.10

8%

instrument facility of your bank

Banks physical facilities are
visually appealing
Employees of your bank are well
dressed and appear neat
The appearance of the physical
facilities is kept with the type of
service provided.

30

TANGIBILITY SATISFACTION
Up-to-date
Banks
Employees
The
appearance
physical
equipments
of your
facilities
of bank
the physical
and
are visually
w
instrument
ellfacilities
dressed
appealing
facility
is
and
kept
appear
of
with
your
the
neat
bank
type of service provided.

8% 8%
19%

65%

The above graph clearly specifies are most satisfied with the physical environment of Loan
Clinic with 65%. On the other hand, employees appearance comes next with 19% and physical
facility and its appearance despite being positive result need to be kept into consideration in
order to improve tangibility dimension of service quality.
2. RELIABILITY
QUESTIONS
5. When banks promise to do

SATISFACTION VALUE
.67

PERCENTAGE
26%

something by a certain time, they

do.
6. When customers have a problem,

.25

10%

banks will show a sincere interest in

solving it.
7. Banks will perform services right

.33

13%

the first time.

8. Banks will provide services at

.75

29%

the time they promises to do so.

9. Banks will insist on error free

.58

22%

records.

31

RELIABILITY SATISFACTION

When banks promise to do something by a certain time, they do.

When customers have a problem, banks will show a sincere interest in solving it.
22%
26%
Banks will perform services right the first time
10%
Banks will provide services at the time they promises
to do so.
29%
13%
Banks will insist on error free records.

The above graph clearly specifies satisfaction level of different customers in reliability factor of
service quality dimension. Customer is very much satisfied with the timeliness of the Loan
Clinic as it is 29% whereas problem solving factor of the service organization is the least of all
with 10% which clearly specifies that the sales representative need to make a follow up plan at
every level of Loan process. Whereas the organization need to take initiative upfront on behalf of
its customers as perform of service right at first time is low at 13%. Whereas loan clinic had
managed to perform their promises and also managed to provide error free record as level of
satisfaction of their customers are 26% and 22% respectively.

3. RESPONSIVENESS
QUESTIONS
10. Employees of the bank will tell

SATISFACTION VALUE
.16

PERCENTAGE
7%

to its customers exactly when

services will be performed.
11. Employees of the banks will

.67

28%

give prompt services to customers.

12. Employees of the banks are

1.34

55%

always willing to help customers.

13. Employees of the bank will

.25

10%

never be too busy to respond to its

customers request.

32

RESPONSIVENESS SATISFACTION

10% 7%
28%
55%

Employees of the bank will

tell to its customers
exactly when services will
be performed.

Employees of the banks

will give prompt services to
customers.

Employees of the banks

are always willing to help
customers.

Employees of the bank will

never be too busy to
respond to its customers
request.

The above graph clearly specifies satisfaction level of different customers in responsiveness
factor of service quality dimension. Loan Clinic being a customer oriented department gives their
full commitment for satisfying their customer requirements which occupies more than half of the
share of responsiveness dimension of service quality which is 55%. Organization has also
managed to provide prompt service as it is 28%. Whereas organization needs to work more on
communication with its customers and also need to take initiatives for fulfilling customers
requests as their percentage being 7% and 10% respectively.

4. AWARENESS
QUESTIONS

SATISFACTION VALUE

14. When customers have

.50

PERCENTAGE
17%

problems, Banks should have

sympathetic and reassuring.
15. Customers should feel safe is

1.08

36%

transaction with bank.

16. Clients can trust employees of

.75

25%

their banks.
17. Employees of the banks should

.67

22%

be polite.

33

AWARENESS SATISFACTION

22%

25%

17%

36%

When customers have

problems, Banks should
have sympathetic and
reassuring.

Customers should feel

safe is transaction with
bank.

Clients can trust

employees of their banks.

Employees of the banks

should be polite.

The above graph specifies about consumer satisfaction with respect to awareness dimension of
service quality. Organization had managed to provide safety and security factor to its customers
and satisfaction level of customers is 36% when it comes to safe transaction. Employees of Loan
clinic had managed gain and retain the trust of its clients as it is 25% of overall awareness
satisfaction. Loan clinic managed to provide sympathetic and reassuring factor as customers are
17% satisfied. Polite of employees while communicating with the clients are said to be positive
as it resulted in 22% level of awareness dimension satisfaction.

5. EMPATHY
QUESTIONS
18. Banks gives its customers

SATISFACTION VALUE
.83

PERCENTAGE
19%

individual attentions.
19. Banks operating hours are

.25

6%

convenient for customers.

20. Employees of the bank gives

1.25

29%

personal services to its customers

21. Bank will have their customers

.92

22%

best interest at their heart.

22. Employees of bank will

24%

understand the specific needs of

34

their customers.

EMPATHY SATISFACTION

24%

20%
6%

22%

29%

Banks gives its customers

individual attentions.

Banks operating hours are

convenient for customers.

Employees of the bank

gives personal services to
its customers

Bank will have their

customers best interest
at their heart.

Employees of bank will

understand the specific
needs of their customers.

The above graph clearly specifies the satisfaction level of customers of loan clinic when it comes
to the empathy part of service quality dimension. The loan firm yet again proved that its a
customer oriented firm by providing personal services to its customers as rate of satisfaction is
29%. Customers do get individual attentions as rate of satisfaction is 24% and also provide them
with update with recent benefits they can drive and thus providing best interest to its customers
and therefore satisfaction percentage is 22. Employees also managed to understand individual
needs of their customers as satisfaction is 19%. Only thing which need to be forced on is
operating hour of the organization as satisfaction level is very low at 6% only.
HYPOTHESIS TESTING
TANGIBILITY
H0(NULL)= There is no significant gap between Consumer Expectation and
Perception about tangibility part of service quality of Home Loan.
Ha(ALTERNATIVE)= There is significant gap between Consumer Expectation and
Perception about tangibility part of service quality Consumers of Home Loan.

35