A Study on Customer Preferences in Home Loans Market

Banks in their effort to satisfy the client's needs, successfully focus on mortgage products. With the development of increasingly complex mortgage instruments, it has become important to consider the process by which the consumer chooses among these instruments. The real estate literature does not address how the customer of mortgage instruments make trade-offs among the different instruments. An attempt has been made to analyze the behavior of customers who have taken home loans on the basis of viewpoints of bankers who have been involved in granting the loans. Results of this survey point out that the Price of the service offered has been the major competitive advantage in the market of home loan as it is the major choice criterion for customers besides Customer Relationship Management, Customized Product Features, Marketing Strategies, Tax Benefit, Age-Tenure Relationship and all these factors that together contribute to the formation of competitive advantage for a Bank.