Credit appraisal process and customer satisfaction on home loans with reference to ING Vysya Bank Ltd

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Credit appraisal process and customer satisfaction on home loans with reference to ING Vysya Bank Ltd

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Abstract

The changes after liberalization and globalization process was initiated in 1991 had a significant impact on the financial sector. In India, housing finance segment has increased in the recent years. Boost to housing can rejuvenate the economy. The success of the housing companies in the market rest on the availability of customized product and also the service quality offered to customers. The future growth of the companies depends upon its qualitative service to the customers. At this juncture, the banks should evaluate their services and identify their distinction from others. Housing has maximum propensity to generate income and demand for materials, equipments and services. Also the housing sector creates a substantial employment opportunities. Housing being one of the three basic human needs of life always remains among the top priorities of any person, society and economy. Low growth rates in developing markets, changing customer needs, and the uncertain economic conditions in the developing world are exerting pressure on housing companies while testing their ability to survive. The only way to succeed in the market is the formulation of differentiated service to different customer segments. Hence, it is essential to identify the discriminate service quality among the public and private players in Home Loan market. The present study has made an attempt on the Credit Appraisal Process & Customer Satisfaction on Home Loans at ING VYSYA BANK. The basic premise of globalization is opening of new service markets to provide the developing countries with new opportunities for the expansion of trade and economic growth. The exposure of the banking sector of housing loan has gone up

Introduction
The liberalization and globalization process in India
Objectives of the study
Scope and limitations of the study
Review of literature
1. Housing sector
2. Credit apparaisal sector
Company profile
1. A study of ING home loan
Findinds and conclusion
Suggestions
Bibliography

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[...] State Bank of India (SBI) has also decided to raise interest rates on home loans by 50 bases points on all credit linked to prime lending rates (PLR). Under the revised rate structure, the floating rate for new borrowers of HDFC was while the fixed rate was 14%. The fixed loan interest for ICICI home loans was increased to - possibly the costliest in the sector. In June, RBI also increased the repo rate by 25 basis points to from 7.75 %.These hikes in CRR and repo increased funding costs in the medium and long term and thus the lending rates that are linked to the cost of funding were raised. [...]

[...] Finance India 2007 “Financing of Housing Sector in Punjab : A Study of Institutional Sources” by Jasmandeep Kaur Brar Indian Journal of Marketing July 2007 “Indian Banking: Changing Pattern of Employment and Issue of Employee's efficiency in Global Era-Challenges and Opportunities by Dr. R.K. Uppal and Rimpi and Rimpi Kaur. Websites www.housing finance.org www.iba.org.in www.rupeetimes.com ANNEXURE Customer satisfaction on credit appraisal process of home loans with reference to ING Vysya Bank Ltd. (This survey is for academic purpose and the information would kept confidential) 1. Name of the respondent : 2. Age : 3. Occupation : Employee ( ) Businessman ( [...]

[...] As such if a son/daughter is in employment and wants to be co-borrower there is no difficulty as long as his/her salary is routed through the bank and the property is validly mortgaged to ING Vysya Bank Ltd. Expected rental: Less taxes, cess etc., if the house /flat is being purchased proposed to be let out. Other income: Regular income from all sources provided the sanctioning authority is satisfied about proof of income. b. STATEMENT OF COMPUTING ELIGIBLE LOAN AMOUNT The quantum of housing loan depends on NMI/EMI ratio which normally cannot exceed 50% NMI (Net monthly Income) Professional /business people: To assess the credit worthiness of a businessman or a professional the bank considers Annual income after tax, as pr I.T. [...]

[...] RBI clears setting up of ING Vysya Life Insurance Company 2001 ING-Vysya commences life insurance business The Bank launches a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, the account that comes with a personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-bank net banking service ING takes over the Management of the Bank from October 7th RBI clears the new name of the Bank as ING Vysya Bank Ltd 2003 Introduced customer friendly products like Orange Savings, Orange Current 2004 Introduced Protected Home Loans - a housing loan product The origin of ING Group On the other hand, ING group originated in 1990 from the merger between Nationale-Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV. [...]

[...] Credit facilities enjoyed if any form INJ Vysya Bank Ltd Present Request & Purpose of loan Details of Flat / House to be constructed / Purchased If purchased age of the House / Flat Name of Vendor & Address 17. Location of Flat / House to be purchased / Constructed 18. Type of Construction ii) Plinth Area iii) Carpet Area iv) Total Area of Super built-up area Rate / Sq. ft. vi) Gross construction cost prevailing in the area (to be verified from their builders in the line of construction in that area Cost of land ii) Cost of Construction iii) Cost of stamp duty, Registration etc. [...]

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