Customer Satisfaction in Home Loan Services: A Comparative Study of Public and Private Sector Banks in Karnataka

Abstract

The banking sector today faces intense competition, with customers having a wide range of options to choose from. In India, the demand for home loans has surged, with various housing finance institutions offering convenient, fast loan processing. This study aims to compare the level of satisfaction among home loan borrowers in Karnataka, focusing on those who obtained their loans from public and private sector banks. The research specifically examines borrowers from SBI and Canara Bank (public sector) and HDFC and ICICI (private sector). By analyzing key satisfaction variables, the study provides valuable insights for lending institutions to enhance their services in line with the evolving needs of home loan customers. Additionally, the findings can guide policymakers in updating home loan regulations. The results show that borrowers express generally high levels of satisfaction with both public and private sector banks, supporting the hypothesis that satisfaction is largely positive. Based on the study’s findings, it is recommended that banks—both public and private—focus on offering competitive interest rates, affordable EMIs, and quicker loan disbursement to attract a larger customer base in the future.