Abstract
The purpose of this paper is to explore the influence of the cost of borrowing, processing time and documentation on the service quality of banking institutions in India that sanction housing loans. A research framework was designed to consider the independent variables influencing service quality by unearthing research gaps in the extant literature on housing loans. All research gaps were transformed into a questionnaire, to which 535 useful responses were received. A five-point Likert scale was used, and a structural equation model was formulated using ADANCO 2.0.1 – all hypotheses were tested with ADANCO. The findings clearly indicate the relevance of the service quality in banking sectors in India. There is a significant relationship between the three independent variables (cost of borrowing, processing time and documentation) and service quality. The outcome of banking service quality is measured through initial personal contact, online banking services, the humanitarian approach, provision of information for services, promise of service delivery and field verification, with all these measures having a very strong impact. This study is restricted to India only, but could be extended to other developing countries in South Asia in the future. This study could also be extended to cover other types of banking loans offered by banking institutions in India. The paper concludes that it is time for banking institutions to take action to sanction housing loans with a view to introducing the instant sanctioning of bank loans that come with real-time access, without resorting to bureaucratic policies and procedures for housing loan customers.
Highlights
As Lending institutions offer online platforms for soon as the home loan approval formalities are their housing loan services in order to facilitate over, the loan agreement is transmitted to and faster processing – starting from the enquiry for from the applicant
Based on the structural equation model, there is no doubt that the cost of borrowing, processing time and documentation are decisive influencing factors in determining the service quality of banking institutions offering housing loans
The measures and outcomes of service quality are assessed by initial personal contact, online banking services, humanitarian approaches, provision of information about services, the promise of service delivery, and field verification
Summary
As Lending institutions offer online platforms for soon as the home loan approval formalities are their housing loan services in order to facilitate over, the loan agreement is transmitted to and faster processing – starting from the enquiry for from the applicant. Final instalment of a home loan, the borrower reMcQuiston (2018) places importance on the sim- ceives a message stating that the property that plification, standardization, and rationalization was mortgaged is no longer owned by the lending of the loan application process. H1: There is a significant relationship between that parameters, such as the initial processing of the cost of borrowing and the service quality loan application (0.862), collection of information of banks.
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