Empirical Study of Consumer Preference w.r.t. Home Loan using Data Analytics

Abstract

Purpose: The rising population and rapid pace of urbanization owing to the rural–urban migration offers huge
untapped potential especially in the affordable housing segment. According to Census 2011, 377.1 million
Indians comprising 31.14 percent of the country’s population lives in urban areas, which is projected to grow
more than 600 million by 2031.According to National Association of Home Builders, the housing industry
as a whole contributes about 17% to 18% of the India’s GDP. As engines of development and vehicle of
silent socio-economic revolution in the country, Indian banks have assumed new responsibilities in the fields of
geographical expansion, functional diversification and personal portfolio.
The paper calls for adopting a multi-dimensional endeavour starting from preparation of questionnaire, data
collection and subsequent analytics using analytical tools for information policy decisions. The study was carried
out with the aim to study the comparative analysis of consumer preference between public sector and private
sector banks/ housing finance companies for taking home loan. The paper also examined the satisfaction level
of the customers who have availed Housing Loan for the construction of house/flat/renovation.

Design/Methodology/Approach: The primary data has been obtained by conducting a sample survey.
Cronbach’s Alpha reliability test was undertaken to evaluate the reliability of the questionnaire for the survey
study. The analysis was performed using SPSS. The Cronbach’s Alpha value thus obtained was 0.94(high value).
Hence, the surveydata has been relied upon for exhaustive data analytics.
The surveydata was also viewed and categorised on vital parameters such as: age, gender and occupation of
respondents.