CONTENTS

Sr. Chapter Page

No. No.
1 Introduction to the topic 2
 Company Profile 10
 Scope of the study 20
 Objectives 21
 Hypothesis statement 23

2 Research Methodology 25
 Research design
 Sampling design
 Sampling method
 Sample size
 Data collection methods

3 Analysis & Interpretation 29

4 Hypothesis Testing 39
5 Findings 41
6 Conclusions 43
7 Suggestions 45
8 Limitations 47
9 Bibliography 49
10 Annexure 51

1
2
 INTRODUCTION

INTRODUCTION TO HOME LOANS

Home is a dream of a person that shows the quantity of efforts,

sacrifices luxuries and above all gathering funds little by little to
afford one’s dream.

Home is one of the things that everyone one wants to own.

Home is a shelter to person where he rests and feel comfortable.
Many banks providing home loans whether commercial banks or
financial institutions to the people who want to have a home.
Union Bank Home Loan, India have been serving the people for
around three decades and providing various housing loan according to
their varied needs at attractive & reasonable interest rates. Owing to
their wide network of financing, Union Bank Housing Loans provides

3
services at your doorstep and helps you find a home as per your
requirements.
Many banks are providing home loans at cheapest rate to attract
consumers towards them. The more customer friendly attitude of
these banks, currently offer to consumers cheapest loan over homes.
In view of acute housing shortage in the country, and keeping in
mind the social – economic role of commercial banks in the present
times, the RBI advised banks to encourage the flow of credit for
housing finance.
With the RBI reducing bank rate, the home loan market rates
nose-diving by 50 basis points. The Union Bank Bank and Standard
chartered bank has become the first player in this sector to announce a
housing loan for a 20 years period. No doubt it will enhance the end
cost people to plan their house over longer duration now; it has been
made easy for a person to buy that dream house which he dreamt of
long ago.
Union Bank also provides with Home Improvement Loan for
internal and external repairs and other structural improvements like
painting, waterproofing, plumbing and electric works, tiling and
flooring, grills and aluminium windows. Union Bank finances up to
85% of the cost of renovation (100% for existing customers).
Current status is that Union Bank reduced home loan rates by 50
basis points for all its existing floating rate customers.

4
ADVANTAGES OF HOME LOANS:-
The various benefits of home loans arising to the customers are:-

(i) Attractive interest rates:-

The various banks offer attractive interest rates to boost and
help their customers. Many banks provide loans on fixed or floating
rates to facilitate consumers as per their needs.

(ii) Help in owning a home:-

The home availed by a person with the help of banks, because
they provide technical and financial assistance to customers for
owning their dream home.
(iii) No requirement of guarantor:-
The commercial banks now a day, liberlise their laws regarding
home loans. Some of banks don’t even require the guarantor to grant
loan to their consumers. They also make consumers free by reliving
him to find a guarantor to complete the proceedings of availing loan.

(iv) Door-Step Services:-

These door to step services are provided from enquiry stage to
the final disbursement takes place such services are beneficial for
customers in present busy life. Banks like ICICI bank and standard
chartered bank provide door to step services to customers to borrow
loan.

5
(v) Loan period:-
There are many banks which provide maximum loan tenures
upto 15-20 years based on the loan amount and the creatibility of
customers. This relieves the customers to repay loan amount till a
long period.
(vi) For accidental death insurance :-
Some banks provide free accidental death insurance with
housing loan which is also beneficial for the customers.
These benefits or advantages of home loans are responsible for
making than so popular among customer that a person who don’t have
their home and want to buy, they do it with home loan. Home loans
help such persons in making their dream home.

DISADVANTAGES OF HOME LOANS:-

The main disadvantages of home loans are high lightened as
below:
(i) Delays in processing :-
Many times, there are huge delays in processing of providing
home loans because various formulations to be fulfilled in this
process. Due to these delays customers feel mentally as well as
financially weak.

(ii) Fluctuating interest rates :-

Some banks give home loans at floating rates, which fluctuate
at Different intervals due to some reasons. These changes sometimes,

6
may lead to increase in interest rate which will increase the cost of
home loans to the customers

(iii) High Cost:-

The public sector banks charge high processing cost for home
loan’s sanctioning. They are forced to pay serious charges at various
stages to fulfill the requirements. Some consumers are not able to pay
such charges so such people could not avail the benefits of home loan
schemes.
(iii) Problems in disbursement:-
There are many problems in disbursement of home loan
amount. There are some delay in disbursement of loan amount to the
customers due to legal formalities. This causes problems to the
customers.
These are limitations or disadvantages of home loans. But some
times some banks charges high installments to repay loan amount.
Such also causes problem to customers. These limitations can be
removed by providing good and promote services to the customers.

DISBURSEMENT OF HOME LOANS :-

The every bank has its own procedure to disburse the loan
amount among customers. After choosing your right home, the next
step is disbursement of home loans. The loan amount is disbursed
after identifying and selecting the property or home that are purchased

7
and submit the requisite legal documents. In the disbursement of
home loans a clear title and full verification to ensure that a person
has full rights on his house. The 230A clearance of seller and /or 371
clearances from the appropriate authority of income tax is also
needed.

(I) Eligibility criteria:-

However, if one is a resident or non-resident individual who is

planning to buy a house in India, one can apply for a home loan. If a
person has decided to buy a property in the near future, he/she can
apply for a loan before even selecting the property. Once the
maximum amount to put into the property has been decided, the
Housing Finance Institutions or Banks will let the customer know that
how much he/she is eligible for and this helps to plan out the budget.

(ii) Conditions regarding co-applicants: -

All Housing Finance Institutions lay down conditions on who
can be co-applicants. all co-owners to the property. need to be co-
applicants to the loan necessarily. These institutions do not permit
minors to join in as either coowner or as co-applicants because a
minor is not eligible to enter into a contact as per law. They do not
permit even friends or relatives who are not blood relatives to take a
property jointly.However, Income of co-applicants can be clubbed
together to get higher loan eligibility. Given below is a Table that

8
 throw light on acceptable relationship of a co-applicant for clubbing
of income.
Income Clubbing of Co-applicants:- It is as follows:-
Combination Income Clubbing: -

 Husband-Wife: - Income of husband-wife can be clubbed.

 Parent - son: - It can be clubbed if only son is there but not if any
male sibling exists.

 Brother-Brother: - If they are currently staying together and

intend to stay together in the new property, then only, their income-
can be clubbed for above purposes.

 Brother-Sister: - No clubbing-is possible.

 Sister-Sister : - No clubbing is possible.

 Parent-Minor- Child: - No clubbing is possible in this case also.

9
COMPANYPROFILE

10
 COMPANYPROFILE

Union Bank of India, commonly referred to as Union

Bank or UBI, is an Indian government-owned bank with 120+ million
customers and a total business of US$106 billion. After the
amalgamation with Corporation Bank and Andhra Bank, which came
into effect on 1 April 2020, the amalgamated entity became the one of
the largest PSU bank in terms of branch network with around 9500
branches. Four of these are located overseas in Hong Kong, Dubai,
Antwerp, and Sydney. UBI also has representative offices at
Shanghai, Beijing and Abu Dhabi. UBI operates in the United
Kingdom through its wholly owned subsidiary, Union Bank of India
(UK). The bank has a network of 9300+ domestic branches, 11800+
ATMs, 8216+ Business Correspondent Points serving over 120
million customers with 77000+ employees.
History

11
A 2018 stamp dedicated to the 100th anniversary of the Union Bank
of India

Union Bank of India was established on 11 November 1919 in

Bombay (now Mumbai) by Seth Sitaram Poddar. The bank's
corporate office was inaugurated by Mahatma Gandhi. At the time of
India's independence in 1947, the bank had four branches – three in
Mumbai and one in Saurashtra in trade centres. By the time the Indian
government nationalized UBI in 1969, it had 240 branches. In 1975, it
acquired Belgaum Bank, a private sector bank established in 1930 that
had itself merged in a bank in 1964, the Shri Jadeya Shankarling Bank

12
(Bijapur; incorporated on 10 May 1948). In 1985, it acquired Miraj
State Bank, which had been established in 1929, and which had 26
branches.
UBI expanded internationally in 2007 with the opening of offices
in Abu Dhabi, United Arab Emirates and in Shanghai, China. In 2008,
it established a branch in Hong Kong. In 2009, Union Bank opened a
representative office in Sydney, Australia.
Union Bank of India

Type Public

Traded as BSE: 532477

NSE: UNIONBANK

ISIN INE692A01016

Industry Banking
Financial services

Founded 11 November 1919; 102 years ago in Mumbai

Founder Seth Sitaram Poddar[1]

Headquarters Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman

Point,
Mumbai, Maharashtra
,
India[2]

Number of 9,316 branches

locations 12,957 ATMs[3] (March 2021)

Key people Rajkiran Rai G. (MD & CEO)[4]

Services Consumer banking, corporate banking, finance and

insurance, investment banking, mortgage loans, private
banking, wealth management

Revenue ₹80,104.19 crore (US$11 billion)[3] (FY21)

Operating ₹19,259 crore (US$2.5 billion)[3] (FY21)

income

Net income ₹2,905.97 crore (US$380 million)[3] (FY21)

13
 AUM ₹923,805 crore (US$120 billion) (FY21)[3]

Total assets ₹1,071,705.84 crore (US$140 billion)[3] (FY21)

Total equity ₹64,068.44 crore (US$8.4 billion)[5] (FY21)

Owner Government of India (89.07%)[3]

Number of 78,202[3] (FY21)

employees

Capital ratio 12.56% (March 2021)[3]

Website www.unionbankofindia.co.in

UNION HOME

1. PURPOSE
Purchase of new/old residential unit (house/ flat/villa/apartment etc.)
Construction of residential unit on exiting non agriculture plot.
Purchase of non-agricultural plot and construction of residential unit
(composite project) Repairs/ improvements/ extension of the existing
residential property.
Take-over of housing loan availed from another bank / FI
Completion of under construction residential unit.

14
Purchase of solar power panel along with purchase / construction of
house.

2. ELIGIBILITY
Indian citizens and NRIs
Minimum entry age is 18 years and maximum exit age up to 75 years.
Individuals may apply singly or jointly with other eligible individuals.

Union Bank of India Home Loan Eligibility Based on Salary

There are a number of factors on which the home loan eligibility
dependent. You can use the home loan eligibility calculator of Union
Bank of India to find out the approximate loan amount that you will
be eligible for. The figures mentioned will be based on the
information that you provide.
For the loan amounts listed in the table below, the loan repayment
tenure is assumed to be 30 years and the rate of interest is assumed to
be 6.85% p.a.
Monthly Income Loan Amount

Rs.25,000 Rs.15,26,114

Rs.30,000 Rs.20,60,253

Rs.35,000 Rs.24,03,629

Rs.40,000 Rs.27,47,004

Rs.45,000 Rs.30,90,380

Rs.50,000 Rs.34,33,756

Rs.55,000 Rs.41,96,812

Rs.60,000 Rs.45,78,341

Rs.65,000 Rs.49,59,869

15
 Rs.70,000 Rs.53,41,398

Rs.75,000 Rs.57,22,926

3. QUANTUM OF LOAN
No limit on the quantum of loan.
Loan eligibility depending on repayment capacity of the borrower and
value of property
Maximum loan amount for repairs/renovation is Rs.30 lakh.

4. MARGIN, I.E. YOUR SHARE

10% of the total cost of the purchase/ construction for loans up to
Rs.30 Lakhs
20% of the total cost of the purchase/ construction for loans above
Rs.30 lakhs
20% of total cost of the repairs/renovation.

5. HOME LOAN MORATORIUM PERIOD

Moratorium period of up to 36 months in case of purchase/
construction
Moratorium period of to 12 months in case of repair & renovation.
Moratorium period of up to 48 months in case of Composite Home
Loans from the date of first disbursement OR upto the period allowed
by Development Authority from the date of purchase of plot,
whichever is earlier.

16
6. REPAYMENT
Repayment period of up to 30 years in case of purchase/ construction
Repayment period of 15 years in case of repair & renovation

7. REPAYMENT METHODS
Equated Monthly Installments (EMI)
For borrowers engaged in agriculture or allied activities, Equated
Quarterly Instalment (EQI) instead of EMI may be permitted.
Step-Up Repayment Method: EMI is set at a value lower than the
normal EMI for initial months and for the remaining tenure it is set at
a level higher than the normal EMI.
Balloon Repayment Method: lower than normal EMI at the start of
the repayment tenure followed by lump sum amount expected to be
available at end of repayment tenure.
Flexible Loan installment Plan (FLIP) Method: After receipt some
lump-sum amount midway the EMI for the remaining period can be at
a lower value than normal EMI.
Bullet payment: Deposit of lump sum payment during the repayment
tenure and downward revision in EMIs for the remaining tenure.

8. HOME LOAN RATE OF INTEREST AND PROCESSING

CHARGES
Please click here to know our latest interest rates
Processing charges are 0.50% of loan amount subject to a maximum
of Rs. 15000 plus GST
Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration

17
charges as per actual.

9. PREPAYMENT PENALTY
Floating rate loans
There is no prepayment penalty / take-over penalty if loan is taken
over by other banks/FIs.

Fixed rate loans

There is no prepayment penalty if loan is prepaid from own verifiable
sources.
A take-over penalty of 2% is charged on the average outstanding
balance of the preceding 12 months if the loan is taken over by any
other bank / FI or adjusted by the borrower in lump-sum from any
third party/source (except genuine sale)

18
10. HOME LOAN SECURITY
Simple/Equitable mortgage (E.M.) of the residential property
In case the proposed residential unit is under construction, suitable
interim security is required (till the period of its completion)
However, interim security is not required if tie-up with the builder
(with tripartite agreement) for the particular housing project exists.
DETAILS OF BUILDER TIE-UP click the link.

11. GUARANTEE
Third party guarantee is not required for Resident Indian
One/two guarantors of Indian Residents (other than spouse), having
means equivalent to that of the loan amount, is to be provided by the
NRI applicant.

12. INSURANCE
Property should be comprehensively insured for an amount not less
than the value of the property (less cost of land), covering all risks
with Bank clause.

19
 SCOPE OF THE STUDY

• Scope of the study is limited in Waraseoni region.

• The scope of the study is limited in time constraint.

• The scope of study is limited in money constraint.

• Sample size 30 respondent.

20
21
 OBJECTIVE OF THE STUDY

 To analysis the financial of Home loan of Union Bank.

 To study the concept of home loan.
 To find out the home loans tariff charges of Union Bank.
 To study various loans & schemes including government schemes & other financing
schemes of housing loans of Union Bank.
 To know about housing loans & its features.

22
23
 HYPOTHESIS

 Union Bank home loan schemes are more preferable over Other Banks.
 Union Bank home loans schemes are better than Other Banks.

24
 Research
Methodology

25
RESEARCH METHODOLOGY
The methodology that was adopted for the study includes both primary source
data as well as the secondary source of data. The data has been collected from
40 consumer in gondia city by applying convenient sampling
technique .secondary data for the study have been collected from various
publications in journals , magazines , website and books stastical tool such as
percentage analysis Chi - square analysis and weighted score analysis have been
used to analyzed the data.
DATA COLLECTION
Data collection refers to a purpose gathering of information relevant to the
subject matter under study and methods depend mainly on nature, purpose and
scope of the enquiry to be undertaken on the available resources and time.
Data collection is one of the methods of research. There are mainly two
methods of the data collection.

26
  PRIMARY DATA COLLECTION
 SECONDARY DATA COLLECTION

PRIMARY DATA:
The primary data are those which are collected afresh and for the first time, and
thus happens to be original in character. We can obtain primary data either
through observation or through direct communication with respondents in one
form or another or through personal interview.

SECONDARY DATA:
Secondary data means data that are already available i.e. they refer to the data
which have been already been collected and analyzed by someone else. When
the researcher utilizes secondary data, then he has to look into various sources
from where he can obtain them.
 Internet
 Company manuals and booklets
 Books etc.

The source of information is generally classified as primary and

secondary .
According to pay line V. young the source of information can be
classified into documentary sources and field sources.

• Primary data :-

The information given/ collected by individual or groups constitute

primary source.
Methods of generating primary data
i. Survey

27
 ii. Personal interview
iii. Observation
iv. Questionnaire
b) Secondary data :-

Books, diary, manuscript, letter, magazine, internet etc. are the secondary or
documentary source. The researcher for this dissertation has decided to use
primary source as questionnaire and secondary sources as books and internet for
data collection.
Tools Of Data Collection:
a) Questionnaire and observation was used as tool for primary source of
data collection.
b) Books and internet was used as tool for secondary source of data
collection.

SAMPLE TECNIQUES: Non probability sampling

SAMLE UNIT: customers of Union Banks

SAMPLE SIZE: 30 customers

METHOD: Direct interview through questionnaire

DATA ANALYIS METOD: Charts and graphics

AREA OF SURVEY: Waraseoni

Sampling Method : Convenience Sampling.

28
29
1. What is your age?
AGE/BANK Respondent
21-26 8%
26-35 15%
35-45 42%
45-60 35%

45%
42%
40%

35%
35%

30%

21-26
25%
26-35
20%
35-45
15% 45-60

10% 8%

5%

0%

Interpretation:-
It is interpreted from the above graph , mejority of consumer taking home lone
are in age group of 35-45 . Which account of 42% of total loan distribute
followed by 45-60 age group .Which account 35 % consumer the team is the
financed stability achieve is depart on age also.

30
2. What is your Occupation?

Response % of Respondents
Service 45%
Business 30%
Farming 15%
Other 10%
Total 100%

No. of Respondents

10%

Service
15%
Business
45%
Farming

Other

30%

Interpretation:-
From the group it is evedent that 45% of the consumer taking home loan are
service person followed by 30% business person .

31
3. Are you a account holder of Union bank?

BANKS % OF RESPODENT

Union Bank 68%

Other 32%

TOTAL 100%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Union Bank Other

Interpretation:-
 From the above graph, it is clear that mostly customers have both
Union Bank and Other bank a/c.
 On other hand most customers have Union Bank bank a/c because
this bank easily available at India.

32
4. Are you aware of products & services provided by Union bank?

YES 85%

NO 15%
Total No. of People 100

90% YES; 85%

80%
70%
60%
50%
40%
30%
20% NO; 15%
10%
0%
YES NO

INTREPRETATION:-

From the above data it is clear that most of the customers (around 85%) of

Gondia have the idea about the product & services of Union bank, the rest 15%

have the idea about the product they are using. In this 15% most of the people

are from typical rural area (Farmers).

33
 5. Are you interested in applying for a Housing loan?

YES 95%
NO 5%
TOTAL NO. OF PEOPLE 100

100% 95%
90%

80%

70%

60%

50%
% OF PEOPLE
40%

30%

20%

10% 5%
0%
YES NO

INTREPRETATION:-

Interpretation: 95% respondents’ that i’ve talked to, say that they are interested
in taking housing loans from the bank and the rest said that they are not
currently in the need of the loaning process.

34
6. Which bank you prefer for taking loans?

UNION BANK 62%

HDFC 12%
SBI 2%
OTHER 24%
TOTAL NO. OF PEOPLE 100

70%
62%
60%

50%

40%

30%
24%
20%
12%
10%
2%
0%
HDFC ICICI SBI OTHER

INTREPRETATION:-

According to my sample size 62% of people prefer UNION BANK for loan
product, but some people prefer HDFC, SBI or OTHER Bank for loan because
they are working with that bank & it is easier for them to get loan from their
bank & it easier for them to pay the interest because it is less as compare to
other bank because they are the employee of that bank.

35
7. Does Union Bank provide better home loan services than other private
banks?

Yes 68 %
No 32%

TOTAL 100

80%

70% 68%

60%

50%

40%
32%
30%

20%

10%

0%
Yes No

INTREPRETATION

About 68% of the respondents say that they are satisfied with the loaning
services of the Union Bank rather than other banks

36
8. Which features you like most in Loan segments of Union Bank?

LESS PAPER WORK 3%

ATTRACTIVE INTEREST RATE 35%

TRANSPARENCY 20%
SIMPLE AND FAST 2%
PROCESSING
LONGER REPAYMENT 40%
PERIOD

TOTAL NO 100

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
K E Y G
OR AT NC SIN OD
R E S ERI
R
W
ES
T
P AR CE T P
A PE TE
R NS RO EN
SP IN TR
A TP M
S E FA
S AY
LE TIV RE
P
A C E& R
TTR PL GE
A SIM LO
N

INTREPRETATION

Most of the people like the attractive interest rate & longer repayment period.
It’s easier for people to repay the whole loan amount with its interest with low
interest rate and with longer repayment period.

37
9. For what purpose you have taken home loan from banks?

TYPES NO. OF RESPODENT % OF RESPODENT

CONSTRUCTION 8 40%
RENOVATION 4 20%
PURCHASE 5 25%
CONVERSION LOAN 3 15%
TOTAL 20 100%

No. of Respodent
45%
40%
40%

35%

30%
25%
25%
20%
20%
15%
15%

10%

5%

0%
CONSTRUCTION RENOVATION PURCHASE CONVERSION
LOAN

Interpretation:-

38
 From the above graph, it is interpreted that most of the customers are
taking home loan for the construction for their shelter.

HYPOTHESIS TESTING

39
HYPOTHESIS TESTING :

 H1: After analyzing the data hypothesis 1 is proved that Union Bank home loan
schemes are more preferable than Other BANK.
 H2: Hypothesis 2 is accepted as Union Bank home loan schemes are better than Other
BANK

40
41
 FINDING

1. Majority of the people got loans from Union Bank only

2. Some of the customer not having good faith on private banks
3. Majority of the customers are aware of services and products offered
by Union Bank. But not all the services
4. Most of the peoples preferred Union bank for home loan because of
the long loan tenure.

42
43
 CONCLUSION

 Home Loans and advances have becomes the important source of raising
the finance among the individual.

 The advantage with Home loans is that you design your repayment period
as well as monthly installments according to your financial capacities.

 It is found that the customer awareness about Union Bank is good

satisfied with the financial performance of Union Bank & facility in
Union Bank.

 It was found from the analysis the majority of people referred Home loan
scheme for scheme class societies as compared to others.
 It is found that the majority of people were satisfied with the Home Loan
by the Union Bank.

44
45
 SUGGESTION

 The bank should make effort to aware the customers Home loan
services.
 There is unawareness among the individuals about Home loan by
Union Bank, they should be given proper knowledge and
guidance about the House loans schemes.
 Union Bank should more concern about physical verification
rather than phone verification so it will avoid fraud or cheating.
 For the Home loan better service new offers would be require.
 Union Bank would create good relation with customers by
appointing some more field officers in rural area.

46
47
 LIMITATION OF THE STUDY

1. I was unaware of their operation. The banking activities are very large in number
2. I had no work experience earlier.
3. Limited time for the study.

48
49
 BIBLIOGRAPHY

Books:
“Research methodology” - C. R. Kothari 2nd Edition, Wishwa prakashan.
“Financial Management” – R. S. Gupta.
“Corporate Strategy Management” – V. P. S. Gupta.

Web
 www.bnknetindia/com/banking/finance
 www.unionbank.com
 http://en.wikipedia.org/wiki/bankingfinancialcompany
 Bank brochures and products folders.

50
 ANNEXURE
1. What is your age?
 21-26
 26-35
 35-45
 45-60

2. What is your Occupation?

 Service
 Business
 Farming
 Other

3. Are you a account holder of Union bank?

 Union Bank
 Other

4. Are you aware of products & services provided by Union bank?

 YES
 NO

5. Are you interested in applying for a Housing loan?

 YES
 NO

6. Which bank you prefer for taking loans?

 UNION BANK
 HDFC
 SBI
 OTHER

7. Does Union Bank provide better home loan services than other private banks?
 Yes
 No

51
8. Which features you like most in Loan segments of Union Bank?
 LESS PAPER WORK
 ATTRACTIVE INTEREST RATE
 TRANSPARENCY
 SIMPLE AND FAST PROCESSING
 LONGER REPAYMENT PERIOD

9. For what purpose you have taken home loan from banks?
 CONSTRUCTION
 RENOVATION
 PURCHASE
 CONVERSION LOAN

52