A Study on the Factors Affecting the Consumers to Default the Housing Loan

The purpose of this study is to find out the root cause for the default of the home loan in India. To capture the market share, banks and housing finance companies are pushing their home loan product to the consumers. Besides, Government is also encouraging the banks and housing finance companies for the liberal selling of the home loan as housing finance industry is related to many other industries. But consumers after receiving the home loan find it difficult to repay the loan which may result in defaulting of the home loan. The present study aims at finding out the reason for the default of home loans in India. The findings of the study reveal that respondents with lower family income default than others. The main reason for default of loan among the borrowers are unforeseen personal/family expenditure, delay in loan sanctioning & disbursement and lack of customer orientation