Housing Loan Management: a Study of KUC Bank Ltd

In developing countries like India, the house is a dream of most of the people living in a villages as well as slum in urban areas and middle class people living in houses on rental basis. For these aspirants of houses, housing loan is golden opportunity to bring their dreams into reality. Due to the urbanization and the migration of people, high level demand of housing needs in urban areas is realized. Prior to New Economic policy 1991, banks were not entertaining long term finance for housing purpose. After liberalization, RBI has introduced the policy of housing finance up to Rs. 15 lakhs as priority sector lending. The housing loan is an important issue in the country like India where crores of people are struggling for shelter especially in urban area. The banks can play a supporting role in this connection by providing housing loan to many people who are eligible for it. This paper aims at the comparative analysis of home loan policies and their implementation by various banks. ICICI Bank (Private Bank) Bank Of India (Public Sector Bank) and Kolhapur Urban Co-operative Bank (Cooperative Bank) have been selected for this empirical study on housing loan. Each type of bank has its own identical characteristics as (i)ICICI Bank has preferred Door step service and sanction TAT services for loan (ii) Bank Of India has preferred the attractive rate of interest and (iii) KUCB has preferred the easy and minimum documentation.