An Empirical study on Consumer Preferences for Housing Finance Schemes in Mumbai City

Abstract: The role of housing finance is crucial in enabling people to achieve the dream of owning a home, especially in a city like Mumbai that is experiencing rapid expansion. This research seeks to delve into what factors matter most to people when choosing housing finance options in Mumbai. It sheds light on the primary considerations that guide consumer decisions, such as the interest rates, the length of the loan, the requirements for eligibility, and the quality of customer service. As the issue of making housing more affordable becomes a major concern, the investigation looks into how individuals weigh the different housing finance packages available. Data for this study was collected from 110 participants through a carefully designed survey, supplemented by data from previous studies on housing finance. A chi-square analysis was conducted to explore how demographic variables like income and education level might affect the choice of specific housing finance packages. The results show a clear preference for packages that offer flexible loan terms and lower interest rates, particularly among the middle-income population. Furthermore, the research reveals a lack of consumer knowledge about extra benefits like tax deductions and insurance that could sway their decisions regarding financing. This study offers important insights for housing finance companies, recommending that they should concentrate on enhancing consumer understanding and tailoring their offerings to meet a variety of needs. It also points out the study's limitations, such as the small sample size and the narrow geographic focus, and offers recommendations for future research.