A Comparative Analysis of Housing Finance Institutions in North Coastal Andhra Pradesh: LIC Housing Finance Limited vs HDFC LTD.

Abstract

This paper presents a comparative analysis of two prominent housing finance institutions, LIC Housing Finance Limited (LICHFL) and Housing Development Finance Corporation Limited (HDFC), in the North Coastal districts of Andhra Pradesh. With the rapid growth and evolving landscape of the housing finance sector in India, understanding customer awareness, perception, and satisfaction becomes crucial for institutions aiming to effectively serve their clientele. The study draws on existing literature emphasizing the significance of these factors in shaping customer behavior and institutional performance. Using a quantitative research design, the study assesses the levels of customer awareness, perception, and satisfaction with LICHFL and HDFC among residents of the North Coastal region. A purposive sampling technique is employed to select participants, ensuring representation across various demographic characteristics. Data are collected through structured surveys administered to borrowers of both institutions, supplemented by secondary data sources.

The analysis reveals significant differences in customer awareness, perception, and satisfaction between LICHFL and HDFC. While both institutions play vital roles in the housing finance market, HDFC demonstrates higher profitability and productivity compared to Moreover, borrowers exhibit varying levels of awareness and perception regarding loan products, interest rates, processing fees, and documentation requirements, with HDFC generally outperforming LICHFL in terms of customer satisfaction

The findings underscore the importance of strategic initiatives aimed at enhancing customer awareness, improving service quality, and fostering positive perceptions to remain competitive in the housing finance sector. Policymakers and industry stakeholders can leverage these insights to formulate targeted interventions and regulatory measures conducive to promoting financial inclusion and sustainable housing development

In conclusion, this comparative analysis offers valuable insights into the dynamics of the housing finance market in North Coastal Andhra Pradesh, highlighting the strengths and weaknesses of LICHFL and HDFC. By addressing gaps in customer awareness, perception, and satisfaction, housing finance institutions can better align their strategies with the evolving needs and preferences of borrowers, ultimately contributing to the sector's growth and development.