A STUDY ON HOME LOANS IN ICICI

BANK

TABLE OF CONTENTS
CHAPTER TITLE PAGE NO:
NO. ABSTRACT 8
1 INTRODUCTION

1.1 Introduction 9
1.2 INDUSTRY PROFILE 10
1.3 BANK PROFILE 11
1.4 Evolution of Home Loan 12
1.5 Importance of Home Loan 13
1.6 Types of Home Loan 14
1.7 Features Of ICICI Bank Home Loan 16
1.8 Basic Eligibility Norms for Home Loans 16
1.9 Ways to Enhance Your Eligibility 16
1.10 Documents required for loan sanction 17
1.11 Disbursement of your ICICI Bank Home Loan 18
1.12 Home Loan Interest Rates 19
1.13 Step Up Repayment Facility (SURF) 19
1.14 Flexible Installment Plan (FLIP) 20
1.15 Part Fixed, Part Floating 20
1.16 Smart Fix Home Loans 21
1.17 Insurance Plans for your Home Loan 21
2 LITERATURE REVIEW
2.1 Review of literature 24
3 RESEARCH METHODOLOGY
3.1 Need for Study 29
3.2 Scope and Significance of Study 29
3.3 Objectives of the Study 30
3.4 Research Design 30

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 3.5 Sources of Data 30
3.6 Structure of Questionnaire 31
3.7 Sampling Technique 31
3.8 Period of Study

3.9 Analytical Tools 34

3.10 Limitations of the Study 34
4 DATA ANALYSIS AND INTERPRETATION
4.1 Percentage analysis 34
4.2 One Sample T-Test 46
4.3 Anova 48
5 SUMMARY OF FINDINGS, SUGGESTIONS &
CCONCLUSION5.1 Findings 53
5.2 Suggestions 53
5.3 Recommendation 54
5.4 Limitation 54
5.5 Conclusion 55
Annexure (Questionnaire) 55
REFERENCES 58

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 ABSTRACT

In this research paper, against the milieu of rapid urbanization and a

changing socio-economic scenario, the demand for housing has grown
explosively. The importance of the housing sector in the economy can be
illustrated by a few key statistics. According to the National Building
Organization (NBO), the total demand for housing is estimated at 2 million
units per year and the total housing shortfall is estimated to be 19.4 million
units, of which 12.76 million units is from rural areas and 6.64 million units
from urban areas. The housing industry is the second largest employment
generator in the country. It is estimated that the budgeted 2 million units
would lead to the creation of an additional 10 million man- years of direct
employment and another 15 million man-years of indirect employment. A year
equates a century, knowledge compresses time and the information
technology sweeps the world, gathering momentum with each new
application, soaring towards fresh goal, rapidly opening vistas hitherto
unknown. Here we are, in the 21st century….Years that catapults us towards
new challenges at every stage of endeavor. It gives us good reason for
aiming high. Retail Banking has been popular segment to enter into for many
banks.In this retail banking,housing sector has been most promising segment
which is promising a comprehensive growth rate of about 30% for the next
fivety years.During the past 4-5years the housing sector helped by the
growing housing finance industry has witnessed significant developments.

Keeping the above philosophy in mind, this project is carried out with an
objective to identify the basic needs of the applicants and the process of
Home Loans in ICICI Bank Ltd.

Keywords: Housing Sector,Employement,Rapid Development.

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 CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION

The objective of this paper is to understand the conceptual frame work of

home loan in India and to undertake the empirical study on home loan
industry. In this regard secondary data is being used. The various issues
related to drivers of demand in housing, evolution of home loan.Housing
in India, importance and types of home loan have been discussed. Through
this paper the basics of housing loan addressed.
Home is an integral part of a human being, who since his childhood, dreams
to have living space of his own. Once in a lifetime investment requires loan to
do it and that is how the home loan comes into scheme of things. Buying a
home is dream for everyone. Due to the rising price of properties, it has
almost become impossible for an average earning person to buy a home
through lump sum payment. Therefore, the concept of home loan has come
into existence. There are plethora of housing finance institutions and banks
both in public and private sector which offer home loans. Choosing one
institution and one offer for home loan amidst the thousands available options
have become a very complex task in our country. Apart from this, there are
intricate business jargons and technicalities that make this job more tough
and difficult. Through this study, I propose to identify the critical factors
impacting the growth and distinguishing the growth pattern in home loan
portfolio particularly in public sector banks in India.

ICICI Bank is India’s No. 1 Home Loans Provider. At ICICI Bank Home
Loans, it offers unbeatable benefits to ensure that the customers get the best
deal without any hassles and ICICI Bank makes it extremely easy for them.

1.2 INDUSTRY PROFILE :

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The housing is one of the basic needs of the people as it ranks next to
food and clothing. A certain minimum standard of housing is essential for a
healthy and civilized living. Thus, the priority has to be given for the
development of housing in a country. It is a tool for modern economic
development. The census records of India exhibits that there was no deficit-
housing problem in India till the first half of the century. In 1901, there were
55.8 million houses for 54 million households showing a surplus of 1.8 million
houses. This surplus situation continued till 1941. It was only after 1951, the
deficit trend has started and is continuing with an escalating magnitude. In
1971, total number of households was 100.4 million and the number of
houses was 90.7 million, showing a deficit of 9.7 million. The housing
shortage during 2001 was 41 million. The estimated housing stock
requirement in the country by 2021 is about 77 million in urban areas and 63
million in rural areas. The increasing number of houses and a rising trend in
the size of the households has contributed to the shortage of housing stock in
the urban areas. Only 20% of the Indian population lived in urban areas in
1970 (UNDP 1998). The urbanization is expected to increase still. This
resulted in an estimation of 36% of the population to live in urban areas by
2015. In India, there is a very widening gap between the supply and demand
for housing. There is an urgent need to modify the policy on one hand
and look for an innovative approach for construction of houses on the
other to reduce the deficit. The Government of India(GoI) had introduced
schemes and projects for housing problem in every five year plans. The
National Housing Policy formulated by government of India takes into
account the developments on national and international scene on shelter
sector. The adoption of National Housing Policy by the Parliament in 1994
was a landmark step in promoting housing development in the country.

1.3 BANK PROFILE :

⁎ ICICI Bank is a leading private sector bank in India.

⁎ ICICI Bank Limited is an Indian Multi-National Bank and Financial

Services Company with its corporate office in Mumbai,Maharashtra.

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 ⁎ The Bank’s consolidated total assets stood at Rs.14.76 trillion till
september,2020.

⁎ ICICI Bank has currently a network of 5,288 branches and 13,875 ATM’s
across India.
⁎ ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry.

⁎ The principal objective was to create a development financial institution

for providing medium-term and long-term project financing to Indian
businesses.

⁎ As India’s economy became more market-oriented and integrated with

the world economy, ICICI capitalized on the new opportunities to
provide a wider range of financial products and services to a broader
spectrum of clients.
⁎ ICICI Bank was incorporated in 1994 as a part of the ICICI group. In
1999, ICICI became the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the New York
Stock Exchange.

1.4 Evolution of Home Loan

Home Loan plays a vital role as an engine of equitable economic growth

through the reduction of poverty and prevents slum proliferation in
economy. The demand for housing is increasing rapidly day by day.
Therefore, to meet with the growing housing demand is the aim of the
government. To achieve this aim it is required to provide the loan for housing

to the people. The liberalization of the financial sector of the economy has
also become possible by the housing finance. Home Loan is the funds buyer
has to borrow usually from a bank or other financial institutions to purchase a

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property, generally secured, by a registered mortgage to the bank over the
property being purchased. A mortgage loan is a debt owed on a home, the
mortgage rate is the interest rate charged to the home owner for the use of
the loan. Home loan is a broad topic, the concept of which may vary across
lands, regions and countries, particularly in terms of the areas it covers.

The International Union for Housing Finance, as a multinational networking

organization, has no official position on what the best definition of housing
finance is. The concept of housing finance and housing finance systems has
been evolving over time. Looking at definitions from the mid-1980s, the
housing finance was defined primarily in terms of residential mortgage
finance.

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

homebuyers 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.”

1.5 Importance of Home Loan:

The need for home loans arises not because property prices are heading
upwards all the time but because home loans make great sense from a long-
term savings perspective. Not only are home loans a handy tool for the
common man to own a roof over his head but they also help to save money in
the long run with skyrocketing real estate prices, people are increasingly
opting for housing loans to acquire their dream home. Interest rates are
coming down all the time and the banks and the housing finance companies
are literally falling over each other to lure the prospective home-seekers.
products called „zero down payment loans‟ wherein 100 per cent funding is

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provided for select properties. These lucrative offers are other major reasons
for why people are opting for loans.

For salaried employees, housing loans are the best way to avail of tax
benefits. Many people simply go for the home loans in order to avail these
benefits. Interest payments upto 2.0 lakh on housing loans are deductible
from the taxable income and there is a further deduction of taxable income
maximum up to 1.5 lakh against repayment of principal portion per annum. In
case a person stays in a rented house, the cost of the loan will be nearly zero
percent since he will be saving a decent amount on rent.

Even if one can afford to buy a home with one's own money, home loans
should be availed because they act as good savings instrument. According to
industry estimates, the long term average return in investing in a home is
about 20% p.a. while the average cost of borrowing funds in the market today
is about 7% p.a.
(considering all tax breaks).

1.6 Types of Home Loan:

Various types of home loans are available in India. They are described below:

(i) Home Purchase Loan:

These are the basic home loans for the purchase of a new house. These
loans are given for purchase of a new or already built flat/bungalow/row-
house.

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(ii) Home Improvement Loan:

These loans are given for implementing repair works and renovations in a

home that has already been purchased by the customer. It may be

requested for external works like structural repairs, waterproofing or internal
works like tiling and flooring, plumbing, electrical work, painting, etc.

(iii) Home Construction Loan:

These loans are available for the construction of a new home. The
documents required by the banks for granting customer a home
construction loan are slightly different from the homepurchase loans.
Depending upon the fact that when customer bought the land, the lending
party would or would not include the land cost as a component, to value the
total cost of the property.

(iv) Home Extension Loan:

Home Extension Loans are given for expanding or extending an existing

home. For example addition of an extra roometc. For this kind of loan,
customer needs to have requisite approvals from the relevant municipal
corporation.

(v) Land Purchase Loan:

Land Purchase Loans are available for purchase of land for both home
construction or investment purposes. Therefore, customer can be granted
this loan even if customer is not planning to construct any building on it in

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the near future. However, customer has to complete construction within
tenure of three years on the same land.

(vi) Bridge Loan:

Bridge Loans are designed for people who wish to sell the existing home and
purchase another. The bridge loan helps finance the new home, until a buyer
is found for the old home.

(vii) Balance Transfer:

Balance Transfer loans help customer to pay off an existing home loan and
avail the option of a loan with a lower rate of interest. Customer can transfer
the balance of the existing home loan to any another bank.

(viii) NRI Home Loan:

This is a special home loan scheme for the Non-Resident Indians (NRI) who

wishes to build or buy a home or land property in India. They are offered
attractive housing finance plans with suitable reimbursement options by many
banks in the country.

1.7 Features Of ICICI Bank Home Loan:

 Home loan amount can be chosen to suit specific needs

 One can avail of a loan up to 85% of Cost Of Property
 Conveniently pay off the loan over a period of upto 25 year
 It can be availed at the Floating rate of Interest or at the Fixed rate of
Interest or at the combination of both Fixed & Floating rates  Faster
repayment as principal repayment in on monthly rest.

1.8 Basic Eligibility Norms for Home Loans:

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  Home Loans can be availed by Resident Indian whether Salaried or
SelfEmployed and also by Non- Resident Indian who are Salaried.
 For resident Indians the following are the eligibility norms :
 You must be at least 21 years of age when the loan is
sanctioned.
 The loan must terminate before or when you turn 65
years of age or before retirement, whichever is earlier.
 You must be employed or self-employed with a regular
source of income.

1.9 Ways to Enhance Your Eligibility:

 If your spouse is earning, put him/her as a co-applicant. The additional

income shall be included to enhance your loan amount. Incidentally, if
there are any co-owners they must necessarily be co-applicants.
 Your blood relative income can also be considered for sanctioning the
loan on your combined income.The disbursement of the loan,
however, will be done only after you submit proof of your marriage.
 Providing additional security like bonds, fixed deposits and LIC policies
may also help to enhance eligibility.

1.10 Documents required for loan sanction:

At ICICI Bank we require the following documents to sanction your home

loan:

Sanction Documents:

 Duly Completed Application Form

 Photograph
 Fee cheque
 Photo identity proof
 Age proof

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  Signature verification proof  Residence address proof

Documents for salaried people

 Last three months salary slips

 Form 16
 Bank statements for last 6 months from salary account  Repayment
track record of existing loans

Documents specific for Self Employed

 Income Tax Return / Computation of Total Income / Auditors Report /

Balance Sheet / Profit & Loss Account certified by Chartered
Accountant for last 2 years (3 years for Home Equity) (both for
business and personal of partners/directors)
 Bank Statement for last 6 month from operating account
 Repayment Track record of existing loans / Loan closure letter
 Board Resolution in case of a company
 Proof of existence
 Office Address Proof
 Photo Identity Proof, Residence Address Proof, Signature Verification
is required to be provided for all the main partners / directors.
These are the documents required for sanctioning a loan. You may be asked
to submit further legal documents if required by ICICI Bank or its approved
lawyers. Do retain photocopies of all documents being submitted by you.

1.11 Disbursement of your ICICI Bank Home Loan:

We disburse the loan amount after you identify and select the property or
home that you are purchasing and submit the requisite legal documents.
While you may be under the impression that the list of documents asked for is
rather extensive, please note that it is for your own good. Each and every
single document asked for will be verified and checked to ensure your safety.
This may take some time but we want to ensure a clear title and will complete

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all the legal and technical verifications to ensure that you have full rights to
your home. Your loan will be disbursed after you identify and select the
property or home that you are purchasing and on your submission of the
requisite legal documents. The 230 A Clearance of the seller and / or 37I
clearance from the appropriate income tax authorities (if applicable) is also
needed. On satisfactory completion of the above, on registration of the
conveyance deed and on the investment of your own contribution, the loan
amount (as warranted by the stage of construction) will be disbursed by ICICI
Bank.

Disbursement Documents:

Property documents (as per P&D for respective states and as asked by
empanelled lawyers for individual cases)

• Facility Agreement

• Disbursal Request Form

• Cheque Submission

• ECS or Auto Debit for ICICI Bank account holders or

Post Dated Cheques for EMI

• ECS or Auto Debit for ICICI Bank account holders or

Post Dated Cheques for EMI
• Personal Guarantor’s Documents (PG Form,
Photograph, Identity Proof, Address Proof, Signature Verification and
Income documents, if applicable) In case of property is owned by a
company

• Memorandum of Entry

• Form 8

• NOC

1.12 Home Loan Interest Rates :

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  ICICI Bank ensures that you get the best deal, in terms of interest rate
and other facilities also, in the most convenient way.
 With our varied offering of house loans and home finance, we give you
an opportunity to select the perfect home loan as per your needs such
as:
 Adjustable Rate Home Loan
 Fixed Rate Home Loan
 Combination of the above two

1.13 Step Up Repayment Facility (SURF):

 SURF is a variant to enhance the eligibility of a young professionally

qualified home loan customer with out increasing monthly outflow as
EMI.
 The structuring consider a notional percentage increase in income &
offers options of graded increase in EMI over the tenure of the loan
contracted.  The tenure is divided in three parts
1) Primary being lowest EMI
2) Secondary
3) Tertiary being highest EMI  The following
are the features of SURF
1) Higher eligibility of loan amount with lower EMI
2) Graded increase in EMI considering future increase in
Income Suited for young professionals.
3) SURF can be availed by Resident Indian whether
Salaried or SelfEmployed Professionals.
1.14 Flexible Installment Plan (FLIP):

 FLIP is a variant for structuring enhanced eligibility of home loan

applicants with varying tenure of income source.
 This repayment facility is given when income is going to reduce after
certain time during the loan tenure due to one of the borrowers retiring
before loan maturity.
 The EMI payable becomes affordable based on individual income
source and also matching the family cash flow.

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  This variant is offered typically to family members joining as applicants
like husband & wife or father & son with varying tenure of service
Period / Age norm.
 FLIP considers income of two applicants and offers step down
repayment facility.
 One of the applicants should have service period till the end of the
tenure of the loan.
 FLIP would have two different EMIs during the tenure of the loan.
 Normally the first EMI would be based on the combined income.
 The second EMI would be smaller & based on the lower income with
longer tenure of the applicant.
 FLIP can be availed by Resident Indian whether Salaried or
SelfEmployed and also by Non- Resident Indian who is Salaried.

1.15 Part Fixed, Part Floating:

 A product that offers the dual benefit of fixed rate loans as well as
floating rate loans.
 With this product, a customer can book part of his loan under a fixed
rate plan and the other part under a floating rate plan.
 Thus, he can minimize the impact of any adverse changes in the
interest rate regimes and at the same time, avail of any benefits that
may come by way of favorable changes.
 Part Fixed, Part Floating can be availed by Resident Indian whether
Salaried or Self-Employed and also by Non- Resident Indian who is
Salaried.
1.16 SmartFix Home Loans:

 3 years fixed and floating rate thereafter.

 A product that offers the safety of fixed rates plus the advantages of
floating rates.
 The Smart Fix enables the customer to lock at fixed rate of interest
today with the contract to move to a floating rate on a subsequent
date.

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 For the first 3 years you get a fixed interest rate. From the fourth year,
your loan gets switched to the prevailing floating interest rate.
 Thus, a customer gets an opportunity to observe the interest rate
movement over a period of time and expects to benefit in the bargain.
 Smart Fix can be availed by Resident Indian whether Salaried or
SelfEmployed.
 The interest rate on ICICI Bank Home Loans is linked to the ICICI
Bank Floating Reference Rate (FRR)/PLR.
 Consequently interest rate for all existing customers under Adjustable
Rate Home Loans (ARHL) also went up by 1%.

1.17 Insurance Plans for your Home Loan:

 Introducing exclusive home loan insurance that can provide cover to

your Home loan in the face of any unforeseen event happening to your
life.
 In case of any of these happenings, your family will have the support
of the insurance cover to pay for the outstanding Home loan, without
being burdened by the loan EMI's.

i. Key Benefits of HomeSafePlus:

 No medical checkup/
 Comprehensive insurance plan for individual, home and
its contents.
 Single premium long-term insurance plan.
 Premium paid for the Critical Illness cover is eligible for
tax benefits u/s 80D of the Income Tax Act.
 Sum Insured remains constant throughout the policy
period (loan O/S amount to come to bank, rest goes to
individual).
 Multiple applicants can be covered under the same loan.
 Simple application form.

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 ii. Key Benefits of HomeAssure/HealthAssure:

 Life Cover from HomeAssure for the entire home loan tenure.
 Critical Illness cover from life threatening illnesses like cancer, coronary
artery bypass, heart attack, kidney failure, stroke, major organ transplant.
 Special non-medical limits only for ICICI Bank Home Loans customers.
 Dual benefit to customers, Life Cover from HomeAssure and Critical Illness
Cover from HealthAssure.
 Dual tax benefits, Section 80C benefits under HomeAssure, Section 80D
benefits under HealthAssure.
 Simplified claim procedure.

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 CHAPTER 2

LITERATURE REVIEW

2.1 REVIEW OF LITERATURE:

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Goyal and Joshi (2011) have deduced in their study on Social and Ethical
Aspects of Banking Industry that banks can extend themselves as a
social and moral oriented association by just dispensing credits to those
social, moral and ecological concern associations.

Kumar and Gulati (2010) examined at the centrality of the possession

on the Indian local banks adequacy. Data Envelopment Analysis (DEA),
which is a non-parametric, deterministic and straight programming based
system, was utilized to register open and private division banks
effectiveness score. The operational cross-sectional information of the
general population and private area banks amid the money related years
2005-06 and 2006-07 was utilized and it was found that (1) De nova
private division banks command the development of effective boondocks of
Indian household saving money industry; (2) Primarily, the entire
specialized wastefulness stops from administrative inadequacy rather than
scale wastefulness; and (3) Though the general population and private part
banks' productivity contrasts have been noted, in a large portion of the cases
these distinctions are measurably insignificant. Overall, it is reasoned that
industry possession is incapable in the Indian local saving money industry.

Naveen K.Shetty and Dr.Veerashekharappa (2009) studied the significance

of microfinance in achieving money related incorporation. The paper
concentrates on effect of the expanding hole sought after and supply of
money related administrations in India which has prompted the expanding
populace of the nation to be avoided from the formal budgetary credit

framework on housing advance.

Kerry D (2008) broke down, amid the period 1998-2008, there wasa
sharp ascent and afterward there was a surprising drop in the homecosts.
Financial basics were the fundamental purposes behind these adjustments in
home costs. Thusly the issue was not a result of subprime loaning, but

20
rather emotional diminishments in the Fed, a short time later amid the early
mid-2000 there was an expansion in the rates of premium; the
development of housing was engaged in the business sectors where
there were critical supply-side limitations, that able to be more value
unpredictable. Likewise the issues laid in light of expansion and decline
of certain home loan items, instead of credit lack.

Sendhilvelan and Karthikeyan (2007) RBI has expressed that the

development towards general keeping money ought to have speedier
dependability and proficiency of the budgetary framework, yet without anyone
else it cannot give a viable or feasible answer for the operational issues of
individual organizations emerging from credit capitalization, abnormal state
of NPAs vast resources liabilities crisscross, liquidity and so forth.
However in a business sector driven economy to confront the opposition
one variable is the size and subsequently, the passage of Universal banks
is unavoidable for the general monetary advancement of our nation. There is
most likely step by step we are moving towards the administration of a
couple of substantial banks from the administration of numerous little
banks. This illustration is accomplished with the idea of widespread
managing an account which surely fortify the banking sector.

Talwar (1996) in an article on the present saving money situation and

the requirement for an arrangement change, opines that a noteworthy
concern tended to by managing an account segment change is the
strengthening of the budgetary wellbeing of banks. The presentation at
prudential standards is better money related order by guaranteeing that the
banks are aware of the danger, benefit of their loan portfolios.

Boyd (1994) the study closes on rate of interest charged on advances,

enthusiasm on bank accounts, notoriety. All these interest have played an
essential part for customers and money related execution of a bank in
business sector. However, customers likewise mind other criteria, for

21
example, the amount of agreeableness of representatives, item, online
offices, paper work and postliminary.

Spencer (1991) pointed that the significance of bank picture as focused

technique for expanding customer activity stream. Inclination for bank
amongst understudies as supplier of money related administrations, more
noteworthy trust in huge medium estimated banks, significance of customers
by work force, focused store rates and credit accessibility were the key
discoveries.
Narasimham Committee (1991) In the most recent two decades
different changes came in the keeping money framework in our nation
that were engaged and highlighted by Narasimham Committee. Till now has
progress going on. By this bank came to know their frail focuses and how
to came up. There were numerous angles which decrease in profitability,
effectiveness and gainfulness of a bank framework. The board of
trustees firmly makes changing, solid economy ventures to make Indian
banking framework effective.

Rangarajan(1988) Remarks that division of banks credit for gainful reason in

vital for financial improvement. Banks are more unbending in loaning
exercises and along these lines meriting and poor individuals are not getting
budgetary help. New measures are key to guarantee that advance
achieve meriting hands.

Leelamma Kuruvilla (1999) tosses light on National Housing Policy and

new activities in housing money. She proposed that the adjustment in the
lawful casing work, rearranging the strategy for housing money and the
dynamic contributions of the Government in the housing division will
moderate the housing issue.

Mathurn (1993) opined that the money related weight of interest in

housing is by and large substantial when the proprietor does not have
adequate assets accessible to pay for the site and the whole cost of

22
development. Consequently, he should make game plans to acquire
reserves from some different sources.

Parekh (1988) reported that the eventual fate of housing fund is to improve
the credit start process for housing all through the nation to build up an
institutional system that would encourage the beginning procedure, to
distinguish the potential asset base for the framework in general and to
disentangle the lawful framework as for danger administration of housing
money organizations.

Karthik. G. (1998) in his study about the Housing and Development

corporation and national housing bank argued that profitability and growth
of housing finance in India is largely based on the development and
introduction of new schemes matching the economic profile of the
borrowers. This study suggested improvement in schemes is highly
essential for the growth of housing finance in India.

Vidhayavathi. K (2002) in her study evaluated the performance of

housing finance institutions on certain selected business parameters as
well as through an opinion survey over the home loan seekers and
concluded that apart from interest rate advertisement, service quality,
courtesy and speed of service are certain other important dimensions
affecting the growth of housing finance industry.

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CHAPTER 3

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 RESEARCH METHODOLOGY

3.1 NEED FOR STUDY

 The business environment today and intense competition globally

have made it mandatory.

 The business entities to train their human resources constantly and

as per the emerging challenges.

 The Major three needs are to understand the home loan market
with its current practices in context of Indianscenario.

 To know the ideas of customers about home loan products and

services.

 To study the problem faced by the customers in obtaining home

loan.

 Designed strategically to meet the business needs.

3.2 SCOPE OF THE STUDY:

 All industries have challenges to face when it comes to training

their workforce, many of which are unique to that particular
industry, and the banking sector is no different.

1. Regulation changes

2. Ensuring all staff meet training standards

3. Resistance to change

4. Supplementing existing courses

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 5. Overwhelming levels of information

3.3 OBJECTIVE OF THE STUDY:

Following are the objectives of the study:

 To understand the concept of home loans schemes.

 To Bring Awareness about home loan scheme in ICICI bank

 To understand Home Loan process

 To understand the documents involved in the home loans and the

repayment methodology.

 To detail about the interest rates and tenure to be choosen for

repayment.

 To know more about the innovative home loan schemes and the
risk capturing mechanisms.

3.4 STATEMENT OF THE PROBELEM:

Traditionally, banks have recruited young school leavers, and their

initial training was either long apprenticeship or on-the-job or
formal training in basic routine operations.

In Banks, there is a need for the continuous training and

development of the staff in the areas of customer care services on
operational aspects and behavioral aspects of the business.
The training needs are assessed through task analysis and
performance Analysis.

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It was argued that banking requires exercise of sound training and
development programmes for their employees.

3.5 RESEARCH METHODOLOGY:

Research is the process of systematic and in-depth study or

search for any particular topic, subject or area of investigation,
backed by collection, compilation, presentation and interpretation
of relevant details or data.

RESEARCH PROCESS:

In research process, the first and foremost step is defining and

selecting a research problem. A Researcher should at first find the
problem. Then should formulate it so that it becomes susceptible
to research

3.6 PERIOD OF SURVEY:

 Two months

3.7Research Design :

⁎ Type of Design : Exploratory research design.

⁎ Sample size :The sample comprises of 100 respondents

⁎ Research Area : Dharmapuri Branch

⁎ Sampling Technique : Random Sampling

⁎ Questionnaire Preparation

⁎ Collecting Data from Employee

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 ⁎ Analysis of Data

⁎ Testing of Hypothesis

⁎ Analysing using SPSS Tools

⁎ Findings

Questionnaire Preparation:

The questionnaire is prepared based on the need of present

employees working due to recent changes working style and to
get upadated with current technology.

Collecting Data from Employee:

The Data is being collected from employees with the help of

Google Form.

Analysis of Data:

The Collected Data obtained is analysed and interpreted using

charts and tables.

Testing of Hypothesis:

Hypothesis and is tested using SPSS Package.

Analysing using SPSS Tools:

The data is imported in SPSS and analysed using required tools.

Findings:

The findings are listed in the form of tables.

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