International Journal of Current Research and Academic Review
Int.J.Curr.Res.Aca.Rev. 2014.2(1): 30-40
Consumer preference for housing loan between old and new generation commercial banks in Kanchipuram, India
L.Sivaramakrishnan and Ti. M. Swaaminathan*
PG and Research Department of Commerce, Pachaiyappa s College for Men, Kanchipuram- 631501, Tamilnadu, India
Housing Finance 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 has increased rapidly day by day. The introduction of banking finance for housing purposes has come as a big boost not only to the customers, but also to the overall economy, since the construction sector is a labour intensive sector which directly provides employment to lakhs and lakhs of people, especially to the poor and marginalised section. It is also linked with other industries like cement, steel, blue metal, etc. Thus, when the construction sector flourishes, it also leads to the growth of the other sectors, apart from the growth in employment generation. However, there is considerable completion between the public sector and private sector banks in offering housing loan to the customers, since it is an important segment of loans for the banks, which can lend on long term basis. Thus, they offer different incentives and benefits to the customers to attract them and hence, some customers prefer the public sector banks, while some others prefer the private sector banks. This study makes an attempt to examine the reasons and the factors which are responsible for the differing preferences for taking housing loan between the old and new generation commercial banks.
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