Interpretation & Analysis of survey conducted in banks.<br />Banks visited: SBI Main Branch ,HDFC Bank, Axis Bank & ICICI Bank.<br /><ul><li>The most preferrred product under housing loan in all the banks is purchase of flat/duplex. SBI has another most preferred product unlike other banks i.e take over of existing loan from other banks as it reduces interest rates.
SBI is lagging behind in speedy processing of housing loan as its TAT- Turn Around Time is 6 days which is more than other banks.
Although the cost of documentation charged by SBI is not the highest but banks like AXIS & ICICI are not charging cost of documentation at all.
The Lawyer’s fees for legal advice are borne by the customers only in SBI where as in all other banks it is borne by bank itself which shows lack of concern of SBI towards its customers’ pockets.
SBI considers expected/projected income from house property while considering the loan amount . This enhances the loan amount eligibility providing relief to the borrower.</li></li></ul><li><ul><li>SBI does not ask for any additional security or guarantor other than the mortgage of the house for which loan is sanctioned . It implies it does not cause any extra burden for customers unlike other banks like HDFC & AXIS.
SBI provides housing loan with overdraft facility for benefit of customer.
The cover of house property through insurance is compulsory in case SBI where as it is optional in case of other banks.
SBI offers accident insurance as an additional facility unlike other banks.
SBI provides homeloans at combined scheme of floating & interest rates.</li></ul>Continued…….<br />
<ul><li>70 % of the builders surveyed opined that above 50% of the cost of the housing project is financed through banks.
Out of 10 builders surveyed 6 expressed that other private banks like HDFC is providing the maximum number of housing loans.
60 % of the builders were of the view that processing speed of SBI regarding housing loan is delayed.
SBI is favoured over other banks in case of easy terms and conditons.
SBI stands No- 1 in the area of interest rates.
Most of the builders are not aware of all the housing loan schemes & advantages which shows the lack of marketing.
70 % of the builders responded that they will recommend SBI to their customers due to various positive traits like SBI is economical,interest rates are low & excellent customer service provided .
30% of the builders responded that they will not recommend SBI to their customers because agents of other banks like HDFC & ICICI are personally approaching the builders & displaying their various products on housing loan to lure the customers.</li></ul>Interpretation & Analysis of survey conducted among builders.<br />
SBI is the best home loan provider despite stiff competition from HDFC due to following facts:<br /><ul><li>The SBI has made home loans in India easy. The home loan provides ideal home loan product for the borrowers including ready to move-in property, under-construction property, self-constructions and lots more. It provides adequate home loans at suitable interest rate and time period.
Lowest interest rates, currently between 7.50% pa and 8.50% p.a.
Unique facitilities such in principle approval, overdraft facility, option to enhance loan amount eligibility, free personal accident insurance & varied schemes like the plus schemes.</li></ul>Conclusion & Recommendations<br />
But still SBI has to look after certain factors to improve its position.<br />Recommendations:<br /><ul><li>SBI has to focus on marketing its home loan products in more efficient manner so that not only the customers but also the builders will be well aware of it. Advertisement is essential for any product and it should be given major importance. The features and advantages with SBI over other players are to be comparatively analyzed and displayed for information of others. </li></ul> <br /><ul><li>It should focus on fast processing of housing loans keeping in mind the pace of other banks.
SBI should market the products which are provided specially under NRI housing scheme which has not been geared up , This needs to grow internationally.</li></ul> <br />Continued….<br />
<ul><li>Special focus to be given to tap the high net worth individuals through personalized services at their door step.</li></ul> <br /><ul><li>Free value added services provided to the housing loan customers and the rewards that the Bank provides for being a regular customer are not within knowledge of customers . This should be highlighted which not only bring more customers but also attracts more business from the existing customers.</li></ul> <br /><ul><li>Effective marketing through wide publicity, personalized services and speedy disposal to be given still more importance by SBI which will undoubtedly lead to increase its market share in HOUSE FINANCE.</li></li></ul><li>THANK YOU<br />