of 65

FINAL PROJECT

Published on December 2016 | Categories: Documents | Downloads: 3 | Comments: 0
99 views

project report on comparetive study on commercial bank loans.

Comments

Content

PROJECT REPORT ON


COMMERCIAL LOANS PROVIDED BY BANKS”

A training report submitted in partial fulfillment of the requirement for the degree of

BACHELOR OF BUSSINESS ADMINISTRATION (2011-2014)
Submitted by: Navpreet Kaur
BBA-5th (SEM) ROLL NO: 1122610

BABA FARID COLLEGE DEON BATHINDA

ACKNOWLEDGEMENT
It gives me immense pleasure to present this report a written testimony of a very rewarding practical experience, I have undergone .I must utilize this opportunity to express my heartfelt gratitude to all those who helped me in making this project work a success. I am greatly in debited to my friends, teachers for taking great pains in giving me guidance.

Navpreet kaur Jaura

2|Page

DECLARATION I hereby declare that this final project report titled “” in Airsoft Infosys, is the result of my own effort in the training which I did as a part of the curriculum, for the fulfillment of BACHELOR OF BUSINESS ADMINISTRATION (BBA) degree. It has not been duplicated from any other earlier works and all information provided in this report is genuine. This report is submitted for the partial fulfillment of BBA program. It has not been submitted to any other university or for any other degree.

Navpreet Kaur Roll no:1122610 BBA V Semester

3|Page

S.NO 1 2 3 4 5 6
Acknowledgement Certificates Declarations

CHAPTERS

PAGE NO. i ii iii 4 5 8 26

Chapter-1:Introduction
Preface Company profile Introduction To The Topic

Chapter-2: Review of Literature Chapter -3:Development of the main theme 7 8 9
Scope of the study Objectives of the study Limitations of the study

29 30 31

Chapter-4:Analysis and Interpretation 10 11 12
13 14 Research Methodology Analysis & Interpretation Findings Suggestions Conclusions

32 33 47
48 49

Annexure
16 17 Bibliography Questionnaire 51 52

4|Page

PREFACE
The well planned properly executed and evaluated training helps a lot in including good culture. It provides linkage between the student and the institution in order to develop the awareness of approach to problem solving based on broad understanding of process and mode of operation of an organization. This report serves the purpose of elaborating the analysis and the implementation phases of the above-mentioned project. All the features that have been included in the final implementation have been clearly explained to make the project easy to understand. It has been taken care that this document elicits the system development process in a clear and well-documented manner. In the beginning we have provided an abstract into the general features of the project. As we proceed, we’ll delve into more intricate details regarding the working of the project. During our stay here we learnt how an actual project progresses, what sort of problems actually occur during the development of such projects, how to produce quality products and so on.

5|Page

INTRODUCTION TO AIRSOFT INFOSYS

Is an organization headquartered in Australia, India,(A reputable name in the Web World by providing a full services of WEBSOLUTION products.) A 2-year old, distinguished web development company offering website design and web programming services, Airsoft Infosys assists a global clientele, across 7 continents and 60countries, with fully customized and comprehensive services at the most competitive rates. 2012 Operation Head

1About Company Airsoft Infosys, is at present, the most rapidly growing online web solutions company in Australia and India, providing IT enabled services, consultation and outsourcing to companies spread in more than 60 countries across 7 continents. Our advanced delivery model blends technology practices with functional expertise to help you improve your business processes and 6|Page

boost performance. Our professional website design, Website development, logo design, Flash design, and SEO Services, among others, can go a long way in determining the success of your business. Custom Creation also includes, but is not limited to, incorporating images, video and other interactive Content into your site, apart from the usual text element. They offer our clients a repertoire of services like ecommerce website creation and portal Development, brand marketing on leading ad networks, digital marketing, web analytics and Much more. Our talented and experienced team of professionals comprises Web 2.0 development Executives who offer advanced solutions for publishers and advertisers. We create professional And dynamic pages for you using intelligent and smart practices. They also double up as a digital marketing agency that serves leading brands, corporate clients, as Well as other players. Our cost-effective and customized web development and online media Solutions are tailor-made to suit your specific needs and requirements.

7|Page

Services that company offer-:
 Client-server applications  Security Applications  Enterprise applications  Communication applications  Entertainment applications  Utility and productivity applications 8|Page

 Multimedia applications  Social Media applications

INTRODUCTION TO THE TOPIC
INTRODUCTION TO COMMERCIAL LOAN

There are many financial institutes which are providing many loans and provide many financial schemes in which commercial loans play very important role. Financial schemes development involves raising the socio economic status o the population on sustainable bails through optimum utilization of resources, both human and society. The essence of financial schemes like commercial loan is to make life easy people have many dreams regarding their comfort, but for that sometime they don’t have enough money. 9|Page

Then these banks help them to come out from the problem. Commercial loans are of two types, they are given for either manufacturing purpose or trading purpose but both types of loan is income generated it is also called business loan. It is given for the setup of the industry and for the growth and development of the country. Human needs can be fulfilled by these types of loan. The commercial banking structure in India consists of: • • Scheduled Commercial Banks in India Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks.

10 | P a g e

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934). "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector): • • • • • 11 | P a g e State Bank of India Indian Overseas Bank

Indian Bank

Oriental Bank of Commerce

Punjab National Bank



Punjab and Sind Bank

The following are the Scheduled Banks in India (Private Sector): • • • • • ING Vysya Bank Ltd Axis Bank Ltd

IndusInd Bank Ltd

ICICI Bank Ltd

South Indian Bank

OBJECTIVES OF COMMERCIAL LOAN

1. Changing the attitude of people towards commercial loan.

12 | P a g e

2. To generate income through trading and manufacturing 3. Promotion of industries and democratic leadership at the grass roots level by setting up local community.

4. Provision of basic needs and providing employment to various people with earning Profit. 5. Improving the infrastructural facilities in village urban areas etc.

FUNCTIONS OF COMMERCIAL BANKS
The functions of commercial banks are divided into two categories: 1. Primary functions 2. Secondary functions including agency functions. i) Primary functions: The primary functions of a commercial bank include: a) Accepting deposits; and b) Granting loans and advances; a) Accepting deposits The most important activity of a commercial bank is to mobilize deposits from the public. People who have surplus income and savings find it convenient to deposit the amounts with banks.

13 | P a g e

Depending upon the nature of deposits, funds deposited with bank also earn interest. Thus, deposits with the bank grow along with the interest earned. If the rate of interest is higher, public are motivated to deposit more funds with the bank. b) Grant of loans and advances The second important function of a commercial bank is to grant loans and advances. Such loans and advances are given to members of the public and to the business community at a higher rate of interest than allowed by banks on various deposit accounts. The rate of interest charged on loans and advances varies depending upon the purpose, period and the mode of repayment. The difference between the rate of interest allowed on deposits and the rate charged on the Loans is the main source of a bank’s income. i) Loans A loan is granted for a specific time period. Generally, commercial banks grant short-term loans. But term loans, that is, loan for more than a year, may also be granted. The borrower may withdraw the entire amount in lump sum in installments. However, interest is charged on the full amount of loan. Loans are generally granted against the security of certain assets. A loan may be repaid either in lump sum or in installments. ii) Advances An advance is a credit facility provided by the bank to its customers. It differs from loan in the sense that loans may be granted for longer period, but advances are normally granted for a short period of time. Further the purpose of granting advances is

14 | P a g e

to meet the day to day requirements of business. The rate of interest charged on advances varies from bank to bank. Interest is charged only on the amount withdrawn and not on the sanctioned amount. Modes of short-term financial assistance Banks grant short-term financial assistance by way of cash credit, overdraft and bill discounting. a) Cash Credit Cash credit is an arrangement whereby the bank allows the borrower to draw amounts up to a specified limit. The amount is credited to the account of the customer. The customer can withdraw this amount as and when he requires. Interest is charged on the amount actually withdrawn. Cash Credit is granted as per agreed terms and conditions with the customers. b) Overdraft Overdraft is also a credit facility granted by bank. A customer who has a current account with the bank is allowed to withdraw more than the amount of credit balance in his account. It is a temporary arrangement. Overdraft facility with a specified limit is allowed either on the security of assets, or on personal security, or both.

c) Discounting of Bills Banks provide short-term finance by discounting bills that is, making payment of the amount before the due date of the bills after deducting a certain rate of discount. The party gets the funds without waiting for the date of maturity of the bills. In case any bill is dishonored on the due date, the bank can recover the amount from the customer.

15 | P a g e

ii) Secondary functions Besides the primary functions of accepting deposits and lending money, banks perform a number of other functions which are called secondary functions. These are as follows a) Issuing letters of credit, traveler’s cheques, circular notes etc. b) Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults or lockers; c) Providing customers with facilities of foreign exchange. d) Transferring money from one place to another; and from one branch to another branch of the bank. e) Standing guarantee on behalf of its customers, for making payments for purchase of goods, machinery, vehicles etc. f) Collecting and supplying business information; g) Issuing demand drafts and pay orders; and, h) Providing reports on the credit worthiness of customers.

APPROACHES TO LOAN
India is predominantly a rural country but prospects of commercial loan share founded everywhere no matter in rural or urban estate attitude of people must be optimistic some approaches that are being followed by banks providing commercial loans are as follows:

INDIVIDUAL APPROACH
16 | P a g e

Though many development program were initiated during per independence period but in 1980s development of many industries was come into existence for that many people was taken money from various banks the individual approach behind this that one individual took initiative this approach was helped in creating infrastructure for business development.

COMPREHENSIVE APPROACH
This is the approach which is known for the community development this is the major milestone towards commercial loans. It was quite board and comprehensive in nature it covered all the facts providing employment training social welfare education etc.

INSTITUTIONAL APPROACH
Commercial loans come inexistence with the objective to generate income it follow institutional approach because it wants adequate participation of people.

INTENSIVE APPROACH
Approach was intensive because all the loans follow the aspects of improvement essential for rapid increase in commercialization or business growth

TARGET GROUP APPROACH
In this type of approach banks target those people who really interested to generate income and who have prospects to earn profit it ensure the benefits of development reach directly to the people work in there firm. 17 | P a g e

AREA DEVELOPMENT APPROACH
One of the most popular objective is area development by giving this type of commercial loan it is insured that there should be development of area where firm or manufacturing or trading are being done.

ROLE OF BANKS PROVIDING COMMERCIAL LOANS
The banking sector in India has overgrown diversified and overstretched like many of the sprawling big cities in India it has tried to accommodate all types of banking activities especially after the industrial revolution. Major slice banking was acquired by the state in its attempts to cover the commanding heights of the economy.It is the public sector bank if we talk about state bank of India who is the largest bank known for providing loans in various areas commercial loans are one of them besides this many private banking are also come into existence to provide many loans here we will discuss commercial loans only. The rural development planning are absence of total approach at the strategy level lack of coordinated planning at the programmed level and weak planning components of individual programmers.Commercial loans programming or business is not successful without adequate regional planning strong central coordination effective local organization and people active participation at the planning and implementation stage.Industrial development can be possible if only there is proper balance between services oriented programmed and development oriented programmed and self centered programmed. The importance attached to service oriented schemes besides this, has also resulted in the wastage of precious resources.

PROFILE OF STATE BANK OF INDIA

State bank of India is the largest bank in terms of profits, assets, deposits and employees. it has a network of over 9000 branches in India and 51 foreign offices in 52 countries, the bank command about 1/5th of the total deposits and loans in all scheduled commercial banks in the country.

18 | P a g e

The origin of S.B.I dates to 1806 when the bank of Calcutta later called bank of Bengal was established in 1921, the bank of Bengal and other banks were amalgamated to form the empirical bank of India. The state bank of India is the largest commercial bank in India in terms of profits, assets, deposits, branches and employees. About 46% of the bank branches are located in rural areas 27% in semi urban areas, and 6% and 11% are located in urban and metropolitan areas respectively. SBIs funding profile is strong underpinned by its strong retail deposits funding base. While the banks are facing increasing competition in its metropolitan and urban franchise it’s extensively branch network and dominant presence in rural and semi urban branches would held it in good stead SBIs strong franchise gives it access to a steady source of stable retail funds which constitute over 70% of the total resources as on 2004 the bank has pioneered innovative measures and contributed significantly to the growth of Indian economy.

SPECIAL FEATURES OF STATE BANK OF INDIA
1. There schemes meet the customer varied needs. 2. Nominal services processing charges. 3. Loan at competitive rates. 4. Interest charges on reducing balance only instead of annual balance. 5. Interest is compounded quarterly risk. The large size of the dominant market position of the bank has helped it to build up a loan portfolio which is well diversified across industries as well as region thus cushioning the impact of problems in certain industries moreover the increased focus on 19 | P a g e

its top clients and the size of relationship banking approach subsequent to the formation of the corporate accounting groups (CAG) has helped the bank in retaining its top clients.

PROFILE OF I.C.I.C.I
ICICI Bank Limited provides banking products and financial services to corporate and retail customers primarily in India. It offers a range of products and services in the areas of commercial banking, investment banking, and insurance. The company’s deposit products include time deposits, savings accounts, current accounts, payroll accounts, and accounts for small businesses, nonresident Indian accounts, and certificates of deposit. The company’s loan portfolio comprises home loans, automobile loans, and two wheeler loans, commercial vehicle loans, construction equipment and farm equipment loans, personal loans, credit cards, loans against time deposits, loans against shares, leasing and related loans, consumer loans, project and corporate finance, and venture capital finance.It also offers private banking, debit cards, and agricultural financing products, as well as distributes third party investment products and issues unsecured redeemable bonds. Further, the company has interests in the software development, software services, insurance, and business process outsourcing businesses. ICICI Bank operates a network of approximately 573 branches and 2,000 automated teller machines. It also has operations in the United States, the United Kingdom, Canada, Russia, Singapore, Bahrain, the Peoples’ Republic of China, the United Arab Emirates, South Africa, Sri Lanka, and Bangladesh. ICICI Bank was founded in 1955 and is headquartered inMumbai,India.

BENEFITS OF I.C.I.C.I
1. No mortgage no security. 2. Faster sanction. 3. Lesser documentation. 20 | P a g e

4. One stop solution with a bouquet of products. 5. The loan provided in the form of overdrafts letter of credit or bank guarantee and you can borrow up to maximum of Rs. 25 Lakhs. 6. Attractive finance charge floating interest rate 7. Flexible payment schedule part payment pre payment.

PROBLEMS FACED BY BANKS

1. The Indian socio economic scene is still feudal in nature largely still in the midst of illiteracy besides this the Indian psyche is deeply entwined with the cultural ethos. 2. Compounding to this is the problem of nonpayment of loans. 3. Banks may not find operations economical as sometimes the transaction and follow up costs are more than the amount of credit. 4. The procedures involved in availing bank finance sometimes delay the actual receipt of the funds the money if receipt of the funds the money if received late may be of no use to the borrower the next.

THE CURRENT RATES OF COMMERCIAL BANKS CURRENT RATES PROVIDED BY SBI

21 | P a g e

22 | P a g e

INTEREST RATES HOUSING LOAN SCHEME Fixed Rates for maturity of maximum 10 years irrespective of the loan amount.

For loans UP TO and For loans exceeding Rs. 15.00 inclusive of Rs. 15.00 Lacs. Lacs.

Tenure Years

Revised Rate Revised Rate Tenure Years Tenure Years Revised Rate % Floating % Floating Up to 5 years 10.75% Above 5 & up 11.25% to 15 years Up to 5 years 12.50% Above 5 & up 12.50% to 15 years Note: Interest rate (fixed) will be reset at the end of every one year on the basis of interest rates prevailing then.

Up to 5 years 10.50% Above 5 & up to 15 years 11.00%

Above 15 & up to 20 11.50% years

Above 15 & 11.75% up to 20 years

MORTGAGE LOANS Revised Rate Floating 12.25% Revised Rate Fixed 12.75%

MONEY AGAINST SHARES & SECURITIES (MASS) AND OTHER SPECIFIED SECURITIES LIC / NSC / KVPs / RBI bonds / Units. Interest Rate: 11.25% OVERDRAFT AGAINST SHARES: Limit Individual Accounts Limits up to Rs.20.00 Lacs Group Accounts: a) Limits between Rs. 20.00 Lacs and Rs. 23 | P a g e Revised Rate-Floating 11.75%

11.25%

CURRENT RATES PROVIDED BY ICICI ICICI Bank Personal Loan Introduction
ICICI Bank provides loan at an exciting interest rate with 12-60 months payback options, quick processing.

Overview

Salaried loan Plan Type Amount Personal Loan Term Loan Min. – Rs 50000 Max. – Rs 1500000 Min. – 12 Yrs Min. – 12 % Max. – 22 % 6 days

Self Employed Personal Loan Term Loan Min. – Rs 50000 Max. – Rs 1500000 Min. – 12 Yrs Min. – 14 % Max. – 24 % 4 days

Duration Interest Rate

Time Process

Loan for Car from ICICI Bank.
New car loan type Ex-Showroom/On Road Loan Amount Time period Interest on loan Time to Process Loan 24 | P a g e Term loan Ex-Showroom Test comment on amount Min. – 12 Yrs 14.25 % 1 days Old car Term loan Ex-Showroom Min. – Rs 75000 Max. – Rs 75 Min. – 12 Yrs 16 % 1 days

Preferred Manufacturers

Chevorlet, Maruti

Chevrolet, fiat, Ford, Honda, Hyundai, Mahindra, Maruti, Mercedes-Benz, Mitsubishi, Skoda, Tata Motors, Toyota

Bar

Processing Fees

Origination Charges 0.100000001490116 % 0.100000001490116 %

Rs 250000 – Rs 499999 Rs 1950 Rs 500000 – Rs 1000000 5%

ICICI-Loan Against Securities
ICICI bank loan against securities make possible to

obtain loans against securities. You have to do is pledge your securities in favor of ICICI bank. ICICI banks then will grant an overdraft facility on your market linked investment funds or bond. The value is determined by the securities. The bank sanctioned the loan on following securities. Securities Demat Shares Mutual funds insurance policies Loan Amount Up to 20 Lakhs Up to 20 Lakhs 5 Crores

25 | P a g e

UTI Bonds Kisan Vikas Patra & National Saving Certificates

5 Crores 5 Crores

Benefits
1. 2. 3. 4. 5. Avail maximum amount on your securities Interest rate will be charged on the only utilized amount. No additional security or guarantor is required. No prepayment charge. 24/7 customer care center to know the status of your account.

THE CURRENT STATUS OF COMMERCIAL LOANS
The banking sector in India’s has become an agglomerate of banks big and small public and private old and new viable and non viable. There are remarkable diversities in their sizes of organizational pattern geographical presence and functional specialization. Till recently there was classification of scheduled banks based on capital base. There are regional banks also there who help people to take loans. They are operating exclusively in the various areas including rural area opposite to them there are many new banks also functioning only in the urban and metropolitan centers.In terms of size on one extreme there are also private sector banks there is omnipresent banks also like state bank of India with over 9000 bravely on the other extreme I.C.I.C.I is the private sector bank providing commercial loans.

26 | P a g e

CHAPTER-2 REVIEW
27 | P a g e

OF LITERATURE

HISTORICAL BACK GROUND OF BANKS PROVIDING COMMERCIAL LOANS
In the eighties it may be recalled that there was industrial revolution people will come forward to setup organization they took initiative to setup firms many entrepreneurs come forward and took initiative for them these type of banks were very helpful and they help them by providing commercial loans, with minimum interest charges and to give them benefits of establishing any firm. Lots of people were and also in present scenario are taking benefits of commercial loans. The reserve bank of India who comes into existence in 1935 acquired a supervisory and development role in department of banking operations and development. The banking sector witnessed the process consolidation for the first time the number of banking companies achieved success drastically now days.There was drastically change in mid nineties before establishing rural banking commercial banking and cooperative banking was there the objective behind setting up this type of banks providing commercial loans was to generate income and to help in the growth of countries economy.Commercial Banks in India are broadly categorized into Scheduled Commercial Banks and Unscheduled Commercial Banks. The Scheduled Commercial Banks have been listed under the Second Schedule of the Reserve Bank of India Act, 1934. The selection measure for listing a bank under the Second Schedule was provided in section 42 (60 of the Reserve Bank of India Act, 1934. Activities of Commercial Banks The modern Commercial Banks in India cater to the financial needs of different sectors.The main functions of the commercial banks comprise:

28 | P a g e

   

Transfer of funds Acceptance of deposits Offering those deposits as loans for the establishment of industries Purchase of houses, equipments, capital investment purposes etc.

The banks are allowed to act as trustees. On account of the knowledge of the financial market of India the financial companies are attracted towards them act as trustees to take the responsibility of the security for the financial instrument like a debenture. The Indian Government presently hires the commercial banks for various purposes like tax collection and refunds, payment of pensions etc.

CHAPTER-3 DEVELOPMENT OF THE MAIN THEME
29 | P a g e

SCOPE OF THE STUDY
Following are the scope of India


FOR THE MANAGEMENT

Management knows where the bank stands


FOR THE RESEARCHERS They understand the nature of the competition and environment condition of the company.



FOR THE INSTITUTE To gain fame and increase in placements.

30 | P a g e

OBJECTIVES OF THE STUDY

1. To know the industrial development financial schemes provided by SBI and I.C.I.C.I, to air soft Infosys. 2 .To know the effectiveness of industrial financial scheme provided by schemes. 3. To learn about the responses provided by the people. 4. To make suggestions with regard to modify and develop the type of schemes provided by state bank of India and I.C.I.C.I to Airsoft Infosys..

31 | P a g e

LIMITATIONS
1. As only two cities of Punjab were dealt in survey so it does not represent the view of whole Indian Organization. 2. Size of the research is not substantial. 3. There was lack of time on the part of respondent and for me also it was not possible to go into every nook and corner of the study. 4. The survey was based on questionnaire and questionnaire was based on perception.

32 | P a g e

RESEARCH METHODOLOGY
Research is a systemic and objective process of gathering recording and analyzing data for aid of making decision regarding a particular problem.

RESEARCH DESIGN
The research design is a master plan specifying the methods and procedures for collecting and analyzing the needed information the research design. DESCRIPTIVE RESEARCH Descriptive research includes surveys and facts findings inquiries of different kinds.

DATA COLLECTION
PRIMARY DATA: - primary data is gathered through a survey with the help of questionnaire. SECONDARY DATA: - secondary data sources include: Books • Journals • various websites


RESEARCH INSTRUMENTS
33 | P a g e

QUESTIONNAIRE

SAMPLE DESIGN
• • • •

target population people of industries sample size 100 people sampling technique convenience and judgmental sampling area Chandigarh city

CHAPTER-4 DATA ANALYSIS AND INTERPRETAION

34 | P a g e

Q1. Which channel do you prefer?
Bank Personal Private 50% 25% 15%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Bank Personal Private

35 | P a g e

INTERPRETATION:
From the above data 50% people prefer loans from banks and 25% from personal and 15% from private.

Q2. What is your occupation?
Businessman Traders Contractor Any Other 45% 32% 18% 15%

36 | P a g e

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Businessman Traders Contractor Any Other

INTERPRETATION:
In above data 45% are businessman, 32% are traders, 18%are contractor and 15% any other. Mostly businessman relies upon commercial banks.

Q3. Have you taken any commercial loan or plan for it in future ?
Yes No 60% 40%

37 | P a g e

60% 50% 40% 30% 20% 10% 0% yes no

INTERPRETATION:
In above data 60% peoples are taken loans from commercial banks and 40% People prefer other banks.

Q4. If yes then which bank u will prefer
ICICI PNB SBI HDFC Other 38 | P a g e 25% 18% 38% 16% 3%

40% 35% 30% 25% 20% 15% 10% 5% 0% ICICI PNB SBI HDFC Other

INTERPRETATION:
In above data 38% people would prefer State bank of India, 25% would prefer ICICI and other 3%.

Q5. How did u come to know about schemes?
from relative 30%

banks employee 20% Advertisement 40% any Other 39 | P a g e 10%

40% 35% 30% 25% 20% 15% 10% 5% 0% banks employee Advertisement any Other from relative

INTERPRETATION:
In above data 40% people know about schemes through advertisement, 30% from relatives, 20% people will know from bank employees and 10% from other peoples.

Q6. On which Basis you choose it?
Rate of interest EMI Total Amt. 40 | P a g e 42% 25% 31%

any Other

2%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Rate of interest EMI Total Amt. any Other

INTERPRETATION: In above data 42% people will choose rate of interest, 31% will see total amount, 25% EMI and 2% any other.

Q7. What factors influence you to go for the scheme?
Easy availability 55% Reliability Any other 41 | P a g e 35% 10%

60% 50% 40% 30% 20% 10% 0% Easy availability Reliability Any other

INTERPRETATION:
In above data 55% people influenced by easy availability, 35% people will see reliability and 10% any other.

Q8. Are you satisfied with the scheme availed by you?
Yes No 42 | P a g e 70% 30%

70% 60% 50% 40% 30% 20% 10% 0% Yes No

INTERPRETATION: In above data, 70% people are satisfied with the schemes and 30% are not satisfied.

Q.9 In your view interest rate is?

43 | P a g e

High Moderate Low

60% 25% 15%

60% 50% 40% 30% 20% 10% 0% High Moderate Low

INTERPRETATION: In above data 60% interest rate is high, 25% is moderate and 15% is low

Q10. Which bank is providing the better services?
ICICI 44 | P a g e 32%

PNB SBI HDFC Other

18% 30% 17% 3%

35% 30% 25% 20% 15% 10% 5% 0% ICICI PNB SBI HDFC Other

INTERPRETATION: In above data, ICICI bank provides better services from other banks.

Q.11 Are you getting tax benefit?
Yes 45 | P a g e 85%

No

15%

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Yes No

INTERPRETATION:
In above data, 85% people are getting tax benefits.

Q12. What type of security is accepted by the corporation?

Fixed Assets 46 | P a g e

45%

Personal Guarantee Both

20% 35%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Fixed Assets Personal Gurantee Both

INTERPRETATION:

In the above data, it shows that the fixed assets are accepted by the corporation.

Q13. Is collateral security required?

47 | P a g e

Yes No

80% 20%

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

INTERPRETATION: In data above data it shows that 80% collateral security is required.

FINDINGS

48 | P a g e

 Many lenders from commercial banks have been adversely affected by the catastrophe brought about by the handing out of residential loans. Since the balance sheets show poor performances, only a small 2% of the total volume of commercial loans in 2009 is now being done.

 Commercial banks made the declaration that they had to cut short their release of commercial loans due to some highly troubled reports.

 It is to be expected that this trend will go on, affecting even those banks which have survived the crisis.

 For some people, this could seem like the last chance for commercial bank loans. If you are not able to close the loans within a 90-120 day period, you will have to wait for a long period of five years.

49 | P a g e

SUGGESTIONS
 These banks make a periodic review of commercial loan to evaluate, identification, formulation, release and use of funds.  Bank should also try to make procedures more simplified for people

 They should try to see from time to time that application submitted to banks under commercial loan are dealt promptly  Invest more in marketing activates so as to impart knowledge among peoples regarding the availability to the commercial loan  To make procedure transparent enough so as to avoid any fraud and obtaining people confidence.  Developing a strong infrastructure and transport

50 | P a g e

CONCLUSION

After going through my whole study I came to the conclusion that different banks of India either private or public both provide loans with the objective to generate income. They have many financial schemes regarding commercial load. There are many people that are satisfied with the scheme. The procedure of getting loan from these banks is simple and easy and also costumer friendly. I also came to know that many industrialist, traders, and new entrepreneur were aware of these schemes.

51 | P a g e

ANNEXURE

52 | P a g e

BIBLIOGRAPHY
• •

Bhole L.M Financial institutions and markets Tata McGraw hill third edition. Sundaram I Satya industrial development Himalaya publishing house first edition. Desai Vasant the Indian financial system. websites o www.sbi.com o www.icici.com

• •

53 | P a g e

QUESTIONNAIRE
Dear respondent, I am conducting a survey on “A Dissertation on commercial loans provide by different banks” which is a part of my B.B.A. Program. All the information provided by you will be kept secret & will be used exclusively for academic purpose. Name ________________________ Address ______________________________________ ______________________________________ Sex: Male Female

Income: _____________________

Q1. Which channel do you prefer? (a) Bank (c) Private Institution Q2. What is your occupation? (a) Business man (b) Traders (d) Other (c) Contractor (b) Personal

54 | P a g e

Q3. Have you taken any commercial loan or plan for it in future? (a) Yes (b) No

Q4. If yes then which bank you will prefer? (a) ICICI (c) SBI (e) Other Q5. How did you come to know about scheme from? (a) Relative (c) Advertisement Q6. On which Basis you choose it? (a) Rate of Int. (c) Total Amount (b) EMI (d) Other (b) Bank Employee (d) Other (b) PNB (d) HDFC

Q7. For which purpose you are taking commercial loan? (a) Manufacturing (c) Establishment (b) Trading (d) Other

Q8. What factors influence you to go for the scheme? (a) Easy Availability (c) Any other Q9. Are you satisfied with the scheme availed by you? (a) Yes Q10. In your view interest rate is? (a) High 55 | P a g e (b) Moderate (b) No (b) Reliability

(c) Low Q11. Which bank is providing the better services? (a) ICICI (c) HDFC (e) Other (b) SBI (d) PNB

Q12. Are you getting tax benefit? (a) Yes (b) No

Thank you for your co-operation

56 | P a g e

57 | P a g e

58 | P a g e

59 | P a g e

60 | P a g e

61 | P a g e

62 | P a g e

63 | P a g e

64 | P a g e

65 | P a g e

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close