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A Study of Diversified Products of Haldiram In Amravati city to the respect of Diversified Products
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
CHAPTER 1
INTRODUCTION
1.1) INTRODUCTION: -
“A Co-operative bank, as its name indicates is an institution consisting of a
number of individuals who join together to pool their surplus savings for the purpose
of eliminating the profits of the bankers or money lenders with a view to distributing
the same amongst the depositors and borrowers.”
The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as
a co-operative registered as a co-operative bank in terms of the Act whose members –
1. Are of similar occupation or profession or who are employed by a common
employer or who are employed within the same business district; or
2. Have common membership in an association or organization, including a
business, religious, social, co-operative, labor or educational group; or
3. Have common membership in an association or organization, including a
business, religious, social, co-operative, labor or educational group; or
4. Reside within the same defined community or geographical area.
Co-operating Banking: -
Co-operative bank, in a nutshell, provides financial assistance to the people
with small means to protect them from the debt trap of the money lenders. It is a part
of vast and powerful structure of co-operative institutions which are engaged in tasks
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of production, processing, marketing, distribution, servicing and banking in India. A
co-operative bank is a financial entity which belongs to its members, who are at the
same time the owners and the customers of their bank. Co-operative banks are often
created by persons belonging to the same local or professional community or sharing
a common interest. These banks generally provide their members with a wide range of
banking and financial services (loans, deposits, banking accounts…). Co-operative
banks differ from stockholder banks by their organization, their goals, their Values
and their governance.
The Co-operative Banking System in India is characterized by a relatively
comprehensive network to the grass root level. This sector mainly focuses on the local
population and micro- banking among middle and low income strata of the society.
These banks operate mainly for the benefit of rural areas, particularly the agricultural
sector.
1.2) ORIGIN OF CO-OPERATIVE BANKING: -
The beginning co-operative banking in India dates back to about 1904, when
official efforts were made to create a new type of institution based on principles of co-
operative organization & management, which were considered to be suitable for
solving the problems peculiar to Indian conditions. The philosophy of equality, equity
and self help gave way to the thoughts of self responsibility and self administration
which resulted in giving birth of co-operative. The origin on co-operative movement
was one such event-arising out of a situation of crisis, exploitation and sufferings.
Co-operative banks in India came into existence with the enactment of the
Agricultural Credit Co-operative Societies Act in 1903. Co-operative bank form an
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integral part of banking system in India. Under the act of 1904, a number of co-
operative credit societies were started. Owing to the increasing demand of co-
operative credit, anew act was passed in 1912, which was provided for establishment
of co-operative central banks by a union of primary credit societies and individuals.
Co-operative Banks in India are registered under the Co-operative Societies
Act. The cooperative bank is also regulated by the RBI. They are governed by the
Banking Regulations Act 1949 and Banking Laws (Cooperative Societies) Act, 1965.
1.3) IMPORTANCE OF CO-OPERATIVE BANKING: -
Co-operative bank forms an integral part of banking system in India. This
bank operates mainly for the benefit of rural area, particularly the agricultural sector.
Co-operative bank mobilize deposits and supply agricultural and rural credit with the
wider outreach. They are the main source for the institutional credit to farmers. They
are chiefly responsible for breaking the monopoly of moneylenders in providing
credit to agriculturists.
Co-operative bank has also been an important instrument for various
development schemes, particularly subsidy-based programs for the poor. Co-operative
banks operate for non-agricultural sector also but their role is small. Though much
smaller as compared to scheduled commercial banks, co-operative banks constitute an
important segment of the Indian banking system. They have extensive branch network
and reach out to people in remote areas. They have traditionally played an important
role in creating banking habits among the lower and middle income groups and in
strengthening the rural credit delivery system.
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Types of Co-operative Banks
Multistate Consultant Private Limited: -
Multistate Consultant Private Limited provides A-Z services regarding Multistate
Cooperative Society, Mutual Benefit (Nidhi) Company, Producer Company, Section
25 Company, NBFC etc starting from its registration, Advisory services regarding
daily activities, finalization of accounts, Submission of annual return and so on.
Multistate Co-operative Society: -
A multi-state cooperative society may be registered if its main object is not confined
to one State and serving the interests of members in more than one State, to facilitate
the voluntary formation and democratic functioning of Co-Operatives as people's
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
institutions based on self-help and mutual aid and to enable them to promote their
economic and social betterment and to provide functional autonomy and for matters
connected therewith or incidental thereto.
A multi-state Co-operative Society is basically a society that is registered or
deemed to be registered under the ‘Multi-State Cooperative Societies Act, 2002’ and
includes a National Cooperative Society or a Federal Cooperative. Ministry of
Agriculture is will issue the registration certificate.
Multi State Co-operative Societies are of several types:
Multistate Credit Co-operative Society
Multistate Housing Co-operative Society
Multistate Farming Co-operative Society
Multistate Dairy Firm Multi State Co-operative Society
Multistate Solar Credit Co-operative Society
Multistate Multi State Multi Purpose Co-operative Society
Multistate Transport Co-operative Society and many more
Producer Company: -
The Companies (Amendment) Act 2002 vides notification no. S.O. 135 (E) inserted
part IX – A of the Companies Act, 1956 (hereinafter referred to as “the Act” ) and
introduced the concept of Producer Company. In the year 2002 an expert committee
led by noted economist Y.K Alagh framed legislation for incorporation of a producer
company, and conversion of inter- state cooperative society into a producer company
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and its reconversion into cooperative society. It aims at upliftment of rural producers
for following reasons:
Rural producers have been at a potential disadvantage given their limited assets,
resources, educational and access to advanced technology.
In Indian context the farmers disposes of his produce in unprocessed form there is
no plough back of surpluses from value addition to the farm.
Agribusiness enterprises are therefore increasingly looking for direct tie up with
the farmers to source the agricultural produce required by them.
Therefore companies (Amendment) act 2002 part IX-A is a step in this direction.
The companies shall be termed as limited and the liability of the members will be
limited to the amount, if any, unpaid on the shares. On registration, the producer
company shall become as if it is a private limited company with the significant
difference that a minimum of two persons cannot get them registered, the provision
relating to a minimum paid-up capital of Rs. 1 lakh will not apply and the maximum
number of members can also exceed 50.
Members' equity cannot be publicly traded but be only transferred. As such, "producer
companies would not be vulnerable to takeover by other companies or by MNCs.''
Formation of Producer Company: -
Any ten or more individuals, each of them being a producer, that is, any person
engaged in any activity connected with primary produce, any two or more producer
institutions, that is, producer companies or any other institution having only
producers or producer companies as its members or a combination of ten or more
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individuals and producer institutions, can get a producer company incorporated
under the Act.
Every producer company is to have at least five and not more than 15 directors.
A full time chief executive, by whatever name called, is to be appointed by the
board.
Following enclosures and documents are required to be submitted with along the
application:
A copy of the special resolution passed with2/3 majority of the member.
A statement showing names, addresses and occupation of the Directors and the
Chief Executive.
A list of the members.
A statement indicating that the Inter-State Cooperative Society is any one or more
of the objects specified in section 581B.
A declaration by two or more Directors certifying that the particulars given as per
para (1) to (4) above are correct.
Guidance on Software Development procedure,
Regular updating regarding multistate society’s laws/ circulars / notifications to
our clients.
People’s cooperative bank, Hingoli is also one of the parts of Multistate Consultant
Private Limited and this study of project mainly focuses on the leading functions of
the banks with special reference to “People’s cooperative bank, Hingoli”.
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
The report states different kinds of loans and the survey that shows the average
number of loan proposal approved and disapproved by the bank.
The study gives an insight into procedures followed by the bank as per the norms of
Reserve Bank of India and Co-operative Society Act 1960.
1.4) HOUSING FINANCE:
Housing finance is a broad topic, the concept of which can vary across
continents, regions and countries, particularly in terms of the areas it covers. For
example, what is understood by the term “housing finance” in a developed country
may be very different to what is understood by the term in a developing country.
The International Union for Housing Finance, as a multinational networking
organization, has no official position on what the best definition of housing finance is.
However, the selection of quotes below is offered as a snapshot of what housing
finance as a topic covers
“Housing finance brings together complex and multi-sector issues that are
driven by constantly changing local features, such as a country’s legal environment or
culture, economic makeup, regulatory environment, or political system”
In addition, the concept of housing finance and housing finance systems has
been evolving over time. Looking at definitions from the mid-1980s, we see that
housing finance was defined primarily in terms of residential mortgage finance:
“The purpose of a housing finance system is to provide the funds which home-
buyers need to purchase their homes. This is a simple objective, and the number of
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
ways in which it can be achieved is limited. Notwithstanding this basic simplicity, in a
number of countries, largely as a result of government action, very complicated
housing finance systems have been developed. However, the essential feature of any
system, that is, the ability to channel the funds of investors to those purchasing their
homes, must remain.”
However, in more recent years, a number of other much wider definitions have
appeared:
“Put simply, housing finance is what allows for the production and
consumption of housing. It refers to the money we use to build and maintain the
nation’s housing stock. But it also refers to the money we need to pay for it, in the
form of rents, mortgage loans and repayments.”
Or
“There is recognition of other relevant forms of housing finance [apart from
residential mortgage finance] such as developer finance, rental finance, or
microfinance applied to housing. Developer finance is often in the form of
unregulated advance payments by buyers, and developers sometimes provide long-
term finance to buyers through installments sales when mortgages markets are not
accessible. Microfinance for housing is typically used for home improvement or
progressive housing purposes. Loans are typically granted without pledging
properties. Although the overall impact of microfinance in housing remains limited,
this activity can represent an important source of funding for those in the informal
sector.”
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1.5) HOUSING LENDING MODEL:
Over the ages, shelter has remained as one of the most basic and important
needs of human beings. People’s housing needs have increased manifold in recent
times as the population grows, the middle class expands and younger generations
choose to move into nuclear family units, or move near the increasingly popular
regional work hubs. However, with high costs of construction materials, high capital
costs and increasing complexity of the legal and technical paperwork needed,
accessibility and affordability of house ownership continues to remain a challenge.
Housing finance acts as a bridge to provide financing and open up the housing
market to aspiring house owners. In recent times, specialist housing finance
companies (HFCs) targeting the low-income/financially-excluded household segment
have emerged as a key player to meet the demands of the newly bankable population
who do not have credit history in conventional terms, and are often not served by
banks and mainstream HFCs. The lending model and operational processes of these
specialist HFCs- which we will refer to as Affordable Housing Finance Companies
(AHFCs) – are the subject of this post.
Housing Finance Sector Review: The Environment for AHFCs and HFCs
There are several players in the housing finance space, such as Scheduled
Commercial Banks (SCBs), Housing Finance Companies (HFCs), Affordable
Housing Finance Companies (AHFCs), Financial Institutions (FIs), Regional Rural
Banks (RRBs), Scheduled Cooperative Banks, Agriculture and Rural Development
Banks, State Level Apex Cooperative Housing Society and development
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organizations like MFIs or SHGs. However the most significant contribution comes
from SCBs and HFCs (including AHFCs).
As of 28 November 2013, there are 18 HFCs which have been granted
Certificate of Registration2 (CoR) with permission to accept public deposits including
6 HFCs that are required to obtain prior written permission from National Housing
Bank (NHB) before accepting any public deposits. 39 HFCs were granted CoR
without permission to accept public deposits. 5 applications for grant of CoR are still
under process.
HFCs typically offer three products – housing loan, home improvement loan
and Loan against Property. As of March 31, 2012, the percentage of housing loan to
total loans offered by HFCs was about 74%3. The general product bifurcation of
disbursement for housing in FY 2011-12 by HFCs is given below which clearly
depicts the high demand for loans below 25 lakhs.
To enable continuous and uninterrupted disbursements of loans to eligible
borrowers, AHFCs must have continuous, diverse, and reliable sources of funding.
Currently, these sources are limited to raising equity from private sources, bank funds,
private placement of debt, and for a handful of AHFCs (such as Gruh Finance, Saral
Home Finance), public deposits with or without prior written permission. For the
larger universe of AHFCs, however, the lack of access to capital markets and public
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deposits compels AHFCs to rely heavily on bank funding, in the form of both long-
and short-term loans. This mixed composition of liabilities, when combined with the
largely long-term nature of assets – the housing loan portfolio – to the tune of 86.7%
of assets having a tenure above 7 years4, requires AHFCs to manage the risk of asset-
liability duration mismatches including risk of refinancing short-term debt at higher
interest rates. Hence, Asset Liability Management (ALM) becomes a key challenge to
HFCs that are highly leveraged and rely predominantly on bank funding.
The regulatory authority and apex financial institution for HFCs, the NHB
provides refinance assistance to eligible HFCs against their existing housing loans.
Such a refinance scheme would be very beneficial for AHFCs and would help them in
managing their ALM mismatches. NHB carried out refinancing to the tune of Rs
17,500 crore5 in the year ended June 2013 and expects to disburse Rs 20,000 crore
under the refinance window. Funding of HFCs as on Mar 31, 2012 is shown in the
below table:
In Part 2 of this post we write about the key features of the lending model,
divergence in processes adopted by some AHFCs and the road ahead.
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1.6) PURPOSE OF HOUSING FINANCE:
Home Buying
For home buyers, the primary purpose of a loan is to facilitate the purchase of
a house or to finance the construction of one. A home is the biggest investment most
people will ever make, and few private individuals could afford one without a
mortgage. Mortgage loans give borrowers with good credit histories access to lower
interest rates and make it affordable to own a home within the two or three decades
that the loan takes to pay off.
Home Improvement
Home loans can also fund home improvements, which are very important for
homeowners. Home improvement loans are usually a wise investment because they
add value to a home, some or all of which will be realized when it comes time to sell.
Home improvement loans can also save borrowers money by allowing them to pay for
necessary repairs as needed, rather than waiting to save up money and finding that the
damage is worse and the repairs more expensive that they would have been earlier.
Home Equity
Second mortgages, which include home equity loans and home equity lines of
credit, and cash-out refinance loans give homeowners access to money for home
improvements, medical bills, college tuition or other expenses, based on the equity
built up by paying off the original mortgage. All of these loan types use home equity--
the amount the borrower has already paid against the initial mortgage--to give the
homeowner access to cash. A home equity line of credit is a loan that the borrower
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can dip into as needed, making charges periodically. A home equity loan and a cash-
out refinance loan both give the homeowner an up-front lump sum payment. While a
home equity loan exists as a second mortgage alongside the first mortgage, a cash-out
refinance replaces the original mortgage and may also give the borrower access to a
new, lower interest rate.
Lenders
For lenders that provide home loans, including mortgage banks and most large
commercial banks, home loans serve as a means of earning a profit. Lenders charge
interest based on a borrower's degree of risk. In addition, some lenders require certain
borrowers who represent a higher risk to purchase mortgage insurance, which protects
the lender in case the borrower is unable to pay back the loan. Lenders use home loan
interest to pay stock dividends, to pay interest to depositors and to fund other
corporate activities.
The Economy
Home loans have an important purpose in the global economy. Besides
helping to pay for the employment of bank staff, home builders and real estate agents,
home loans also fuel mortgage-backed securities. These are investments that earn
money based on homeowners paying interest to lenders. Investment banks and other
firms use mortgage-backed securities to distribute investments across the economy.
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1.7) FOUNDER OF THE BANK:
Sahakarratna Shri Omprakashji Deora Life Profile
Name:-- Omprakash Devkinandanji Deora
“Sunil” New Mondha, Hingoli
Dist. Hingoli—431513
Phone (House) (02456) 220825,220225
Mobile 9422875781
Date Of Birth: -- 08 March 1943
Education: -- Graduate (Sahitya Sudhakar)
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Award: -- 1) Sahkarratna
2) Dharmalankar
3) Agraratna
4) Yagnik
Business & Other:--
1) Agriculture & Social Activities, Industrialist Participate In Agriculture, Social &
Religious Program
2) Last 30 Years Working In Co Operative Banking Sector
Founder Chairman:--
1) Apex Co Op Bank Of Urban Banks Of Maharashtra & Goa Ltd, Mumbai
2) Peoples Co Op Bank Ltd Hingoli (One of the Multistate Bank in Marathwada
region)
3) Marathwada Urban Co Op Bank Association Ltd. Aurangabad
4) Parbhani/ Hingoli Dist. Urban Co Op Banks Association Ltd. Parbhani
5) Shri Shankarrao Chavan P V C Pipe Utpadak Sahakari Santha Maryadit. Hingoli
Ex Chairman:--
1) Maharashtra State Cooperative Banks Association Ltd Mumbai
2) Maharashtra State Urban Co Op Bank Federation Ltd Mumbai
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3) Bhu Vikas Bank Maryadit Dist . Parbhani
Chairman:--
1) Peoples Co Op Bank Ltd Hingoli (One Of The Multi State Bank In Marathwada
Region)
2) Marathwada Nagari Sahkari Banks Co Op Bank Association Ltd Aurangabad
3) Parbhani/Hingoli Dist Nagari Sahkari Banks Association Ltd
4) Gandhi Sewa Trust Hingoli, Sewabhawi Santha
Vice Chairman:--
Ex Vice Chairman National Federation of Urban Co Op Bank Credit Society Ltd,
New Delhi
Director:--
1) Maharashtra State Urban Co Op Bank Federation Ltd Mumbai
2) National Federation of Co Op Bank & Credit Society Ltd New Delhi
Ex Member:--
1) All India Sanskrit Committee, Varanasi (Uttarpradesh)
2) Hindi Sahitya Adviser Committee (Home Ministry) New Delhi
3) R B I Mumbai Adviser Committee
4) Ward Member Hingoli (1965-1995)
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5) Shantata Committee Hingoli
6) Sales Tax Advisor Committee, Maharashtra
7) D P D C Parbhani & Hingoli District Member
8) National Film & Fine Art Cooperative Society New Delhi
9) Bhuvikas Bank Member
Foreign Tour For Studies:--
Tour for Cooperative Revolution Studies Russia, Japan, Italy, Rome, West
Germany & Zekoslovakiya
Political Achievement:--
1) Year1978 to 1995 Marathwada Regional Congress Sarchitnis
2) Chairman, Maharashtra State Congress Committee (Cooperative Revolution,
Mumbai)
3) Chairman, Maharashtra State Congress Committee (Economic Department,
Mumbai)
Social Activity:-
1) Inauguration Statues At Hingoli Of Lord Shri Maharaja Agrasenji & Late Smt
Indira Gandhi ( Ex Prime Minister)
2) Construction Temple for Society
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
3) Construction Religious School At Haridwar, Mathura, Allahabad, Trambakeshwar
& Varanasi
4) Make at Hingoli City Cement Road, Green Belt, Toilet, Cold Water Tank For Use
Hingoli Citizen
5) 500 Acre Land Provide For Development Industries Zone From Maharashtra State
Industrial Sector At Hingoli
6) Loans Available By Bhuvikas Bank For Formers
7) At Adgaon Tq Hingoli Atleast 350 Formers Get Together & 3500 Acre Land
Getting
Social & Education Activity:--
At Hingoli Established Gandhi Seva Trust
1) Established Shri Shankarrao Chavan Urdu Primary & High School
2) Matoshri Gangadevi Deoda Niwasi Andh Vidyalaya
3) Adult Literacy Programs
4) Established Shri Jai Bajrangbali Vyayam School
5) Provide Land To Nagar Parishad Hingoli Employee For Construction Building So
That Area Called Deora Nagar
Future Plan:--
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1) For Bank Employee’s Residence Society Develop At Hingoli
2) Co Op Multi City Hospital
1.8) PRODUCTS:
Current Account
Proprietorship
Partnership
Limited Company
Society Current
Savings Account
Personal Savings
HUF
Society Savings
Fixed Deposits
Fixed Deposits
Senior Citizen
Society Fixed
Re-Investment Deposits
Re-Investment Deposits
Senior Citizen Re-Investment Deposits
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Recurring Deposits
Loan Account
Cash Credit Loan
Secured Cash Credit Loan
Term Loan
Housing Loan
Salary Loan
Vehicle Loan
Warehouse Loan
1.9) BANKING CHANNELS:
Any Branch Banking
Internet Banking
ATM Banking
Mobile Branch Banking
SMS Banking
Tele Banking
Mobile Banking
IFSC Codes
1.10) BRANCHES:
Head office- People's Co-op.Bank Ltd.,Hingoli (Multi State Bank)
Head Office, Main Road, Hingoli
Tq.Dist.Hingoli-4311513
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Ph:(02456) 220748,220749,220518
Fax: 220481
Email: hng_pcbhnl@rediffmail.com
Branches
Maharashtra Andhra Pradesh
Hingoli branch (Main branch) Adilabad Branch Akhada Balapur Branch Parbhani Branch Sengaon Branch JawalaBajar Branch Jintur Branch Deulgaon Raja Branch Mantha Branch Jalna Branch Nanded Branch Akola Branch Aurangabad Branch Pandharkawda Branch Yawalmal Branch Dharmabad Branch Selu Branch Bori Branch Degloor Branch Hadgaon Branch Bhaisa Branch Nagpur Branch Wardha Branch Chopada Branch Pune Branch Bhokar Branch
CHAPTER 2
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REVIEW OF LITERATURE
LITERATURE REVIEW:
1. Journal Name: Housing Finance in India: Development, Growth and Policy
implications
Volume number 1 (1)
Edition- 2 (2008)
Page number- 171
Author name- Dr. Ashwani Kumar Bhalla, Dr. Pushpinder Singh Gill, Dr. Parvinder
Arora
Abstract
Housing Finance is a high flying sector these days and is tipped to grow at a
phenomenal 36% P.a. Banks and financial institutions have brought sea changes in
their strategies and there is shift from sellers market to buyers market. Liberal tax
incentives by the govt. low and competitive interest rates for housing finance has
made this sector as red hot sector. Keeping in view the importance of housing finance
in solving the housing problem this paper analyse the performance of this sector while
identifying the its problems and challenges. A look has also been given to the future
prospects of this sector.
2. Journal Name: Markets and housing finance
Volume number 18
Edition- 3
Page number- 257-274
Author name- Veronica Cacdac Warnock, Francis E. Warnock
Abstract-
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
We examine the extent to which markets enable the provision of housing
finance across a wide range of countries. Housing is a major purchase requiring long-
term financing, and the factors that are associated with well-functioning housing
finance systems are those that enable the provision of long-term finance. Across all
countries, controlling for country size, we find that countries with stronger legal rights
for borrowers and lenders (through collateral and bankruptcy laws), deeper credit
information systems, and a more stable macroeconomic environment have deeper
housing finance systems. These same factors also help explain the variation in
housing finance across emerging market economies. Across developed countries,
which tend to have low macroeconomic volatility and relatively extensive credit
information systems, variation in the strength of legal rights helps explain the extent
of housing finance. We also examine another potential factor—the existence of
sizeable government securities markets—that might enable the development of
emerging markets’ housing finance systems, but we find no evidence supporting that
3. Journal Name: Housing microfinance in post-conflict Angola: overcoming
socioeconomic exclusion through land tenure and access to credit
Volume number 3
Edition- 1
Page number- 9-15
Author name- Cain, A
Abstract-
Development Workshop, human settlements NGO has been working in
Angola since 1981 and is developing approaches to post-conflict shelter challenges.
Two linked programmes of the NGO are discussed in this paper: the KixiCasa housing
microfinance model, aiming to address the issue of economic exclusion through the
provision of microcredit and together with the Ministry of Urbanism and
Environment, the land management strategy, using upgradeable occupancy rights and
land pooling to facilitate the regularization and securing of tenure rights for the poor.
CHAPTER 3
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RESEARCH METHODOLOGY
Research in common parlance refers to search for knowledge. Research is an
academic activity and as such it is used in a technical sense. According to Clifford
Woody, research comprises defining and redefining problems, formulating hypothesis
or suggesting solutions, collecting, organizing and evaluating data, making deductions
and research conclusions to determine whether they fit the formulating hypothesis.
3.1) OBJECTIVES OF THE STUDY:
The study specifically aims at:
1. Studying the importance of housing, demand for housing and house finance in
India.
2. Evaluation of the role of financing of houses in Yavatmal.
3. To identify the popular schemes of Peoples cooperative bank, Hingoli.
4. To analyze the trends in housing finance.
5. To ascertain the problems of borrowers for availing housing loans.
6. To evaluate the impact of tax considerations on housing finance.
7. Measuring the service quality being provided by Peoples cooperative bank,
Hingoli.
3.2) RESEARCH DESIGN:
A Questionnaire is used to do the research
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Exploratory Research design
Focus Group
Primary data analysis
3.3) DATA COLLECTION:
Data means information required in the research. There are two types of data
sources, which have been helpful to carry out the research these, are as follows:
Primary data
Primary data are those, which are collected a fresh and for the first time. Primary
data was collected through questionnaires & Interview schedule.
Secondary data
Secondary data are those, which have already been collected by publication of
Governments, Periodicals of organization, newspaper, books, & internet etc.
Questionnaire
The questionnaire is one of the many ways through which data can be collected.
Questionnaire is widely used by researcher to collect information on related study.
Questionnaire is a method of getting data about respondent by asking them than by
observing and sampling their behavior. Questionnaire should be standardized, its
anonymity can be assured and questionnaire should be design to meet the simple and
native language to allow the use of large sample.
Sampling Universe
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
The first step in devolving any sample design is to clearly define the set of
objects, technically called the universe.
Sample universe includes investors of Peoples cooperative bank, Hingoli.
Sample Technique
Sampling technique used for selection of sample non-probability,
‘Convenience sampling technique’.
A convenience sample is that where the sample is selected, in part or only a
limited attempt, to ensure that this sample is an accurate representation of some larger
group of population. The classic example of convenience sample is standing at
shopping mall and selecting shoppers as they walk by to fill out a survey. A
convenience sample chooses the individuals that are easiest to reach or sampling that
is done easy. Hence, convenience sampling was used for the research.
Sample Size
This refers to the number of item to be selected from the universe to constitute a
sample. The sample size is 50. These users are the families.
3.4) LIMITATION:
The limitation of this study is that sometimes the male or female respondents
may not give the proper and correct information regarding the Training and
Development.
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1) The study was limited to People’s co-operative bank, Hingoli, only.
2) Due to limited time & money, it was not peruse to come whole entire, hence
the sample size was 50 respondents.
3) The study was limited to Yavatmal city.
CHAPTER 4
DATA ANALYSIS & INTERPRETATION
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
The data so collected is scrutinized, tabulated and analyzed by the help of
some statistical tools and techniques and finally used for the study purpose. Following
are the major conclusions are drawn by the researchers.
Table No. 4.1 RESPONDENTS HAVING OWN HOME
Sr. No Opinion Number of
respondents
Percentage
1 Yes 70 70
2 No 30 30
TOTAL 100 100
Sources: Primary Data
Graph no. 4.1 RESPONDENTS HAVING OWN HOME
70%
30%
Number of respondents
YesNo
Interpretation
From above data it can be concluded that, 70% of the respondents are having
their own home and 30% are not having their own home they living in the rent
houses.
Table No. 4.2 AWARENESS ABOUT THE HOME LOAN PRODUCT OF
FOLLOWING BANK
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
Sr. No Bank Number of respondents Percentage
1 ICICI 20 20
2 HDFC 30 30
3 PNB 20 20
4 Other 30 30
TOTAL 100 100
Sources: Primary Data
Graph no. 4.2 AWARENESS ABOUT THE HOME LOAN PRODUCT OF
FOLLOWING BANK
20%
30%
20%
30%
Awareness about home loan
ICICIHDFCPNBOther
Interpretation
From above data it can be concluded that, 30% of the respondent mostly aware
about the home loan scheme of HDFC, 20% respondents aware each of ICICI and
PNB and 30% respondents other banks.
In other State bank of India, central bank of India, bank of Maharashtra is involved.
Table No. 4.3 RESPONDENTS TAKEN HOME LOAN OR NOT
Sr. No Option Number of respondents Percentage
1 Yes 100 100
College of Management & Computer science, Yavatmal Page 30
A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
2 No 0 0
TOTAL 100 100
Sources: Primary Data
Graph no. 4. 3 RESPONDENTS TAKEN HOME LOAN OR NOT
100
Home loan taken
YesNo
Interpretation
From above data it can be concluded that, 100% respondents are taken the
home loan and 0% respondents have not taken the home loan.
Table No. 4.4 FACTOR INFLUENCING RESPODENTS TO TAKEN LOAN
Sr. No Factor Number of Percentage
College of Management & Computer science, Yavatmal Page 31
A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
respondents
1 Interest rate 16 16
2 Service provide by people’s coop.
bank, hingoli
43 43
3 Payback period 20 20
4 Other 21 21
TOTAL 100 100
Sources: Primary Data
Graph no. 4. 4 FACTOR INFLUENCING RESPODENTS TO TAKEN LOAN
16
43
20
21
Interest rateService provide by people’s coop. bank, hingoliPayback periodOther
Interpretation
From above data it can be concluded that, 43% respondents have said the
factor of taking home loan to service provided by People’s cooperative Bank, Hingoli,
16% respondents said interest rates, 20% respondents give payback period reason and
21% respondents said other.
In other State bank of India, central bank of India, bank of Maharashtra is involved.
Table No. 4.5 IN FUTURE, RESPONDENTS WOULD BE INTERESTED TO
TAKE HOME LOAN
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
Sr. No Opinion Number of
respondents
Percentage
1 Yes 55 55
2 N0 45 45
TOTAL 100 100
Sources: Primary Data
Table No. 4.5 IN FUTURE, RESPONDENTS WOULD BE INTERESTED TO
TAKE HOME LOAN
55%
45%
Number of respondents
Yes N0
Interpretation
From above data it can be concluded that, 55% of the respondents are would
be take loan in future, and 45% respondents don’t want to take home loan in future.
Table No. 4.6 WHEN HAVE TAKEN LOAN BY RESPONDENTS
Sr. No Time Number of Percentage
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
respondents
1 Before 1 year 33 33
2 Before 2-3 years 46 46
3 Before more than 3 years 21 21
TOTAL 100 100
Sources: Primary Data
Graph no. 4.6 WHEN HAVE TAKEN LOAN BY RESPONDENTS
33
46
21
time of loan taken
Before 1 yearBefore 2-3 yearsBefore more than 3 years
Interpretation
From above data it can be concluded that, the time is shown when respondents
taken home from the people’s cooperative bank, Hingoli
Before 1 year- 33%
Before 2-3 years- 46%
Before more 3 years- 21%
Table No. 4.7 THE AMOUNT OF HOUSING LOAN TAKEN BY THE
RESPONDENTS
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
Sr. No Amount Number of
respondents
Percentage
1 5-10 Lacs 69 69
2 10-15 lac 20 20
3 More than 15 lacs 11 11
TOTAL 100 100
Sources: Primary Data
Graph no. 4.7 THE AMOUNT OF HOUSING LOAN TAKEN BY THE
RESPONDENTS
69
20
11
Amount of loan taken
5-10 Lacs10-15 lacMore than 15 lacs
Interpretation
From above data it can be concluded that, 69% of the respondents are said 5-
10 lacs loan taken from the bank of People’s Cooperative, Hingoli, 20% said 10-15
lacs, and 11% respondents said more than 15 lacs.
Table No. 4.8 REASON OF TAKING LOAN FROM PEOPLE’S COOPERATIVE
BANK HINGOLI
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
Sr. No Reason Number of respondents Percentage
1 Faster processing 39 39
2 Interest rates 31 31
3 Brand image of the bank 21 21
4 other 09 09
TOTAL 100 100
Sources: Primary Data
Graph no. 4.8 REASON OF TAKING LOAN FROM PEOPLE’S COOPERATIVE
BANK HINGOLI
39
31
21
9
Reason for taking loan
Faster processingInterest ratesBrand image of the bankother
Interpretation
From above data it can be concluded that, 39% of the respondents are said
reason for taking loan from people’s coop. bank, Hingoli is fast processing and 31%
are said to interest rates of the bank, 21% said brand image of the bank and 09% said
other reason.
Table No. 4.9 RATING OF THE INTEREST RATES CHARGE BY THE PEOPLES
COOPERATIVE BANK HINGOLI
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
Sr. No Rating Number of
respondents
Percentage
1 Highly satisfactory 31 31
2 Satisfactory 29 29
3 Averagely satisfactory 22 22
4 dissatisfactory 18 18
TOTAL 100 100
Sources: Primary Data
Graph no. 4.9 RATING OF THE INTEREST RATES CHARGE BY THE PEOPLES
COOPERATIVE BANK HINGOLI
31
29
22
18
rating of interest rates
Highly satisfactorySatisfactoryAveragely satisfactorydissatisfactory
Interpretation
From above data it can be concluded that, 31% of the respondents give rating
as highly satisfactory to interest rates of People’s cooperative Bank, Hingoli, 29%
give satisfactory, 22% rate averagely satisfactory and 18% give dissatisfactory.
Table No. 4.10 RATING OF THE EMI OF PEOPLES COOPERATIVE BANK
HINGOLI
Sr. No Rating Number of respondents Percentage
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1 Highly satisfactory 28 28
2 Satisfactory 22 22
3 Averagely satisfactory 15 15
4 dissatisfactory 35 35
TOTAL 100 100
Sources: Primary Data
Graph no. 4.10 RATING OF THE EMI OF PEOPLES COOPERATIVE BANK
HINGOLI
28%
22%15%
35%
rating of EMIHighly satisfactory SatisfactoryAveragely satisfactory dissatisfactory
Interpretation
From above data it can be concluded that, 28% of the respondents give rating
as highly satisfactory to EMI of People’s cooperative Bank, Hingoli, 22% give
satisfactory, 15% rate averagely satisfactory and 35% give dissatisfactory.
Table No. 4.11 RATING OF THE DOCUMENTATION PROCEDURES OF
PEOPLES COOPERATIVE BANK HINGOLI
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
Sr. No Rating Number of respondents Percentage
1 Highly satisfactory 28 28
2 Satisfactory 22 22
3 Averagely satisfactory 15 15
4 dissatisfactory 35 35
TOTAL 100 100
Sources: Primary Data
Graph no. 4.11 RATING OF THE DOCUMENTATION PROCEDURES OF
PEOPLES COOPERATIVE BANK HINGOLI
28
2215
35
rating about deocumentry
Highly satisfactorySatisfactoryAveragely satisfactorydissatisfactory
Interpretation
From above data it can be concluded that, 28% of the respondents give rating
as highly satisfactory to documentary procedures of People’s cooperative Bank,
Hingoli, 22% give satisfactory, 15% rate averagely satisfactory and 35% give
dissatisfactory.
Table No. 4.12 RATING OF THE SANCTIONING PROCEDURES OF PEOPLES
COOPERATIVE BANK HINGOLI
Sr. No Rating Number of respondents Percentage
College of Management & Computer science, Yavatmal Page 39
A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1 Highly satisfactory 20 20
2 Satisfactory 18 18
3 Averagely satisfactory 16 16
4 dissatisfactory 35 35
TOTAL 100 100
Sources: Primary Data
Graph no. 4.12 RATING OF THE SANCTIONING PROCEDURES OF PEOPLES
COOPERATIVE BANK HINGOLI
20
18
16
35
rating of sanctioning procedures
Highly satisfactorySatisfactoryAveragely satisfactorydissatisfactory
Interpretation
From above data it can be concluded that, 20% of the respondents give rating
as highly satisfactory to sanctioning procedures of People’s cooperative Bank,
Hingoli, 18% give satisfactory, 16% rate averagely satisfactory and 35% give
dissatisfactory.
Table No. 4.13 SATISFACTION FROM HOUSING FINANCE OF PEOPLE’S
COOPERATIVE BANK, HINGOLI
Sr. No Opinion Number of respondents Percentage
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1 Yes 55 55
2 N0 45 45
TOTAL 100 100
Sources: Primary Data
Table No. 4.13 SATISFACTION FROM HOUSING FINANCE OF PEOPLE’S
COOPERATIVE BANK, HINGOLI
55%
45%
satisfactionYes N0
Interpretation
From above data it can be concluded that, 55% of the respondents are satisfied
with home loan of People’s cooperative Bank, Hingoli and 45% not satisfied with
taking home loan of the bank.
Table No. 4.14 DURATION PREFERENCES OF LOAN OF PEOPLE’S
COOPERATIVE BANK HINGOLI
Sr. No Duration Number of respondents Percentage
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1 Below 5 years 39 39
2 5-10 years 31 31
3 10-15 years 21 21
4 15-20 years 09 09
TOTAL 100 100
Sources: Primary Data
Graph no. 4.14 DURATION PREFERENCES OF LOAN OF PEOPLE’S
COOPERATIVE BANK HINGOLI
39
31
21
9
Reason for taking loan
Below 5 years5-10 years10-15 years15-20 years
Interpretation
From above data it can be concluded that, 39% of the respondents prefer
below 5 years duration of EMI loan from people’s coop. bank, Hingoli and 31% are
prefer 5-10 years, 21% prefer 10-15 years and 09% prefer 15-20 years.
CHAPTER 5
FINDINGS & CONSLUSIONS
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1. In this research process, 70% respondents are their own home.
2. In this research process, researcher found that, mostly respondents have aware
about HDFC home loan.
3. 70% respondents having taken home loans from bank.
4. From that research process, 43% respondents said the factor influencing to taking
home loan that service provided by the People’s cooperative Bank, Hingoli.
5. In this research process, in future 55% respondents would be home loan taken
from the any bank.
6. In between the respondents who taken the home loan from a bank, they mostly
said that, they took loan before 2-3 years ago.
7. In the research process, 69% respondents taken the loan amount of 5-10 lacs most.
8. In this research process, mostly respondents said the reason to take the loan from
People’s cooperative bank, Hingoli is to faster processing.
9. In the rating par, respondents rate the interest rate of the bank is highly
satisfactory.
10. In another part of EMI rating, mostly respondents rate the EMI as highly
satisfactory.
11. In this research process, respondents rate the documentation procedures as highly
satisfactory.
12. In this research process, respondents rate the sanctioning procedures as
satisfactory.
13. Mostly respondents are satisfied with taking home loan from the bank of People’s
cooperative bank, Hingoli.
14. Duration that prefer by the respondents mostly is below 5 years.
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
CHAPTER 6
SUGGESTIONS
1. Bank should try to concentrate on the satisfaction level of the loan taker.
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
2. Bank should decrease the problem in case of the documentary, sanctioning, and
EMI.
3. Bank should try to sale more loans by reducing the interest rates.
4. They should try to provide loan schemes to the customers.
5. Bank should try to open more branches at tahsil level and other district level
where it haven’t branch.
6. Bank should try to create advertisement about loan schemes of the bank.
7. Bank should try to aware the customer about the all procedures and documentary
before the loan taken.
8. Bank should try to give more emphasize on the loan scheme.
CHAPTER 7
HYPOTHESIS TESTING
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
1. Customers are satisfied by the housing finance facilities provided by the
people’s co-operative bank.
Satisfaction from housing finance of people’s cooperative bank, hingoli
Sr. No Opinion Number of respondents Percentage
1 Yes 78 78
2 N0 22 22
TOTAL 100 100
78%
22%
satisfaction
Yes N0
From above data it , 78% of the respondents are satisfied with home
loan of People’s cooperative Bank, Hingoli and 28% not satisfied with taking
home loan of the bank. Alternate hypothesis is proved.
2. The process of loan and documentation are easy and bank approved more
number of proposals.
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A Study of Housing Finance with reference to People’s Co-operative Bank Hingoli Branch Yavatmal
Process of loan and documentation are easy of People’s co-operative
bank, Hingoli
Sr. No Opinion Number of respondents Percentage
1 Yes 55 55
2 N0 45 45
TOTAL 100 100
55%
45%
satisfaction
Yes N0
From above data it , 55% of the respondents are said yes to lengthy
documentation with home loan of People’s cooperative Bank, Hingoli and
45% said no. Alternate hypothesis is proved.
College of Management & Computer science, Yavatmal Page 47
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