A Comparative Study Of Home Loan Processing Between Public Sector and Private Banks in Vellore Town

Abstract

Housing finance plays a crucial role in the economic development of a country, particularly in a growing economy like India. This study aims to analyze and compare the home loan processing systems between public sector banks and private sector banks. The research focuses on key aspects such as interest rates, loan processing time, documentation procedures, transparency, digital banking support, and customer satisfaction.

The study adopts a descriptive and analytical research design using primary data collected from 85 respondents through structured questionnaires. Statistical tools such as percentage analysis and chi-square tests are applied to evaluate the data. The results indicate that public sector banks are widely preferred due to lower interest rates and higher trust levels, while private sector banks excel in faster loan processing and better customer service. However, the statistical analysis reveals that there is no significant difference in overall customer satisfaction between the two sectors. The study provides valuable insights for customers, financial institutions, and policymakers to enhance the efficiency and effectiveness of home loan services.

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