A Study of Consumer Buying Behavior for Home Financing With Special Reference to India Shelter, Kota

Abstract

Every human being aspires to have his own house to live in. After food and clothing, housing is the third most important human requirement. On average, a person spends almost two-thirds of his life in a house which is his sanctuary in his old age. Adequate housing is, therefore, a fundamental need of human beings and an essential prerequisite for physical, intellectual and mental development. The term “Housing Loan” is a loan of finance for buying or modifying the house. Blessed are those who live in their own house and fortunate are those who have the money to buy one. But all are not privileged to buy a house of their own. For many such privileged, buying a house has become possible in modern times through housing loans. The various types of housing loan, such as Home Extension Loan, Home Improvement Loan, Plot plus Construction Loan, Construction Loan and Conversion Loan, are offered. Hence, the “Housing Loan” may be defined as a financial resource for an individual or a group of persons who use it especially for the purpose of housing. The paper aims to study the buying behavior of consumer for home financing. Several factors – including socioeconomic profile of the respondents, number of earning members in the house of the applicant to increase his eligibility of getting a home loan, type and purpose of loan seeker, average general loan amount and tenure seeker’s preference, and the customer awareness regarding their CIBIL scores were explored.

Keywords: Housing Loan, Buying Behavior, Socioeconomic Profile, Tenure, CIBIL Scores

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