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BANK LOAN

WHAT IS LOAN
Meaning :->
Bank loan drive the United States economy. Bank loans provide the capital for business to start and expend. Bank loans also meet the payrolls that keep America working. Credit cards are a type of unsecured bank loan, and they help to drive retail sales.

Function :->
The function of a bank loan is to provide the bank customer with necessary funds to accomplish the purpose of the loan, and to provide the bank interest income. Most bank loan is made on collateral in one way or another, and therefore protects the bank from loss in the case of loan default. The majority of bank loans will be for a set duration at a fixed rate of interest. The first step in attaining a bank loan is for a bank customer to fill out a loan application. The application will include personal information, financial information and questions about the purpose of the loan. Once submitted, the application will go into underwriting, where the bank will make a decision on whether or not to loan the money and at what rate of interest.

TYPES OF LOAN
Kisan credit card/ corp loan Car/ two wheeler loan Consumer loan House loan Education loan CCL- cash credit limits

1) Kisan credit card/ corp loan


Purpose :->
It is intended that both term as well as short term credit facilities will be provide through single Kisan credit card. The pass book provided to KCC holders are to be divide into the separate portions for maintaining the records of :-> Short term credit Working capital credit Term credit

Validity :->
The credit card will be valid for 3 years subject to annul review.

Interest :->
The rate of interest is subject to change from time to time as per H.O. transaction.

Documents :->

1) Loan application on from LA-1 along with documents at Sr. No. 15 2) Process note of Branch manager on for PN-1 3) Sanction letter on form SL-1

2) Car/ two wheeler loan


Purpose :->
For purchase of new scooter, motor cycle, car, jeep etc. as well as for purchase of second hand car.

Eligibility :-> For car


Govt. employees having put in 3 years of regular service are eligible for availing the car loan facility. car loan facility.

For two Wheeler


Govt. employees having put in 3 years of regular service are eligible for availing the

The maximum quantum of shall be 40 quantum of loan shall times.

the maximum be 14 times.

Documents to be obtained :->


1) Loan application on form LA-4 2) Loan documents- LD-1, LD-2, LD-3, LD-9, LD-10, LD-11, LD-12, LD-14, LD-18

3) Consumer loan
For purchase of consumer durables for personal use.

Eligibility :->
Any individual having regular and steady income is eligible for consumer loan.

Margin :->
Govt. employee:15% of the total invoice value.

Bank employees:15% of the total invoice value.

4) House loan
Purpose :->
For the construction of new house extension of house, purchase of land, repair of house. Amount of loan will be depending on the cost of house.

Documents :->
Proof of identity such as pan card, voters ID, pass port, driving license. Proof of residence such as recent telephone bill, electricity bill, passport, and voters ID. Proof of business address.

Purchase of land.

5) Education loan
To provide financial assistance to deserving students with an opportunity including undertaking basic education.

Eligibility :->
School education including +2 stages. Graduation courses BA, B.COM, and B.S.C. etc. Post graduation courses (masters& PhD). Professional courses. Courses like CA, CS, and ICWA etc.

Documents :->
Application form Proof of residence Academic record Date of birth/age Family income Admission Fee structure

6) CCL-cash credit loan


To provide free financial support to small business units, retail traders, village industry, small scale industrial units, small scale services.

Eligibility :->
All type of small business units, retail traders, village industries, small scale industrial units, small scale services.

CONCLUSION

The project is based on banking service of KCCB, overview of banking industry, prepared a questionnaire, based on which, I took personal interview. I have also used information from different websites, and news papers. The topic was dealt with in a generally manner. There would be details, which could vary from company to company.

APPENDICES
Questionnaire :->
(1) Do you know about any bank? (a) Yes (b) No

(2) What are the various brands are you aware of; (a) PNB bank (c) ICICI bank (e) Any other (b) SBI bank (d) HDFC bank

(3) Do you have any bank account? (a) PNB bank (c) ICICI bank (e) Any other (4) Which kind of account you have; (a) Current account (c) Any other (5) Are you using ATM service of any bank? (b) Saving account (b) SBI bank (d) HDFC bank

(a) Yes

(b) No

(6) Are you using mobile or internet banks? (a) Yes (b) No

(7) You know about various loans schemes of any banks like Home loan, education loan, car loan etc.? (a) Yes (b) No

(8) Are you satisfied the service provided by banks? (a) Yes (b) No

BIBLIOGRATHY
Study material of Kangra central co-operative bank

NEWS PAPERS
Indian business and economy The economic times Business today The financial express

WEBSITES
www.kangrabank.com www.google.com www.yahoo.com

L.R. INSTITUTE OF MANAGEMENT


Summer Training Report On Kangra Central Co-operative Bank

A project submitted in partial fulfillment of the requirement for the work of degree

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

SUBMITTED TO

REVISION OF INTEREST RATES ON DEPOSIT

Sr. No. Existing


(1) (2) (3)

Period
46 days to90 days 91 days to 179 days 180 days to less than 1 year 1 year to less than 2 Years 18 months to less than 2 years 2 years to less than 3 years 3 years to less than 5 years 5 years to less than 10 years 5.50% 7.25% 7.50%

(4)

9%

(5)

8.50%

(6)

8.75%

(7) (8)

8.50% 8.50%