IMPACT OF BANKING POLICIES AND PRACTICES ON HOUSING FINANCE: EVIDENCE FROM BENEFICIARIES IN PRAKASAM DISTRICT, ANDHRA PRADESH

Abstract

Purpose:

This study empirically investigates the articulation influence of banking processes, fees and service charges, service quality, as well as facilities provided and processing structure on housing finance recipients in Prakasam District, Andhra Pradesh.

Design/Methodology:

Based on structured questionnaire responses obtained from 200 borrowers selected through simple random sampling, the study examines demographic factors, processing patterns of loans and differences between loan amounts applied for and sanctioned. Descriptive statistics, chi-square tests, t-tests and ANOVA were used to analyze beneficiary satisfaction, perception of bank performance and banking practices in relation to loan outcome.

Findings:

Findings show a significant relationship between demographic variables and perception of bank performance (p<0.05). The deviations in the loan can be because of the number of visits to the bank, discrepancies in documentation submission, disparity in valuation figures, incomplete income proof and the need for a guarantor. There was dissatisfaction observed in beneficiaries on processing charges, document intensity and time taken for sanctioning, but service quality varied across bank categories, and communication was better from all the banks.

Originality:

The research emphasizes the demand for simplification around documentation, clarity on charges, a simpler sanctioning process and more effective channels of communication to make life easier for borrowers. This study has implications for the policy−practice nexus at the intersection of housing finance and suggests some recommendations to strengthen beneficiary relationships, operational efficiency, and financial inclusion in semi-urban districts. Areas for further research are comparative analysis across the districts, adoption of digital housing finance and post-sanction behaviour by borrowers.