A PROJECT REPORT ON A STUDY ON CREDIT SCHEMES OF AUTO FINANCE ( WITH REFERENCE OF ICICI BANK ) IN NAGPUR,

A Report Submitted to RASTRASANT TUKADOJI MAHARAJ NAGPUR UNIVERSITY

IN PARTIAL FULFILMENT OF

MASTER OF BUSINESS ADMINISTRATION

SPECIALZATION IN FINANCE MANAGEMENT FOR THE ACADEMIC SESSION 2012-2013

Submitted by Dipa Jivtode Under the Guidance of

G.H. RAISONI INSTITUTE OF MANAGEMENT & RESEARCH khaperkheda Nagpur 2012-2013

CERTIFICATE
This is to certify that Miss Dipa B Jivtode is a bonafide student of Master of Business Administration course, Specialization in Financial Management, session 2012-2013 of the G .H. RAISONI COLLAGE OF MANAGEMENT AND RESEARCH. The candidate has worked under the supervision of Mrs And has satisfactorily conducted project work for no less than one Academic session.The Project submitted by his own work and is complete so as to warrant its presentation for examination. His project work titled A Study on Credit Schemes of Auto Finance ( with reference of ICICI Bank ) Which is in partial fulfillment of the requirement for the above course being forward to RASHTRASANT TUKADOJI MAHARAJ NAGPUR UNIVERSITY,NAGPUR

Guide

principal GHRIMR, Nagpur

Babu Bhai Colony, Prince Lawn, Chincholi, Khaperkheda

Tel:0712-6617181,6617182,6617183 Fax: 0712-6630782 Email:cbsimr.khaperkheda@gmail.com Web:www.cbsimrn.raisoni.net

ACKNOWLEDGEMENT
The compilation of the dissertation in the present of form would not have been possible but for the valuable guidance ,encouragement & contribution of the various persons at the different stags of time; I earnestly wish to extend my humble gratitude to Mrs For suggestion and guiding in the project .She has been particural helpful in smoothing the way and helping me overcome the numerous difficulties that were confronted with during the project I would sincere. Like to thank her, for her invaluable guidance , inspiration and encouragement throughout this project .I consider it a great to have been associated with her I am thankful to principal of GHRIMR Nagpur I am also thankful to HOD of MBA Department , GHRIMR, Nagpur Last but not least I would like to thank our faculty, my friend and also those who directly or indirectly who contributed towards the successful completion of the project

DIPA JIVTODE

DECLARATION

I, DIPA JIVTODE declare that , With the exception of The suggestion & guidance received from my supervisor Mr , The project titled A Study on Credit Schemes of Auto Finance (with Reference of ICICI Bank ) This project is one, which is substantially as this has not been previously Submitted to any examination of this university or other university

Place : Nagpur Date

signature DIPA JIVTODE

TABLE OF CONTENT

SR NO.

SUBJECT

Chapter 1 Chapter 2 Chapter- 3 Chapter 4 Chapter -5 Chapter 6 Chapter 7 Chapter 8

Introduction Company Profile Objectives Research Methodology Hypothesis Data Interpretation and analysis Recommendations & Suggestions Conclusions Bibliography

CHAPTER 1 INTRODUCTION

INTRODUCTION

DEFINATION

Finance is the integral part of a business organization. we can not imagine a businees without finance . Management of finance a businees organization is known as financial management. In the traditional approch earlier , management of money alone was regarded as financial management .however in the modern approch , financial mamagement is not the management of money alone but it is procurement and management of finance of firm Financial management is an area of functionel decision 7

making harmonzing individul motive and goals weston & brigham Financial management is the application of the planning and control function to finance I

CREDIT FINANCE

Credit (from Latin credo transl. "I believe" ) is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date. The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment.[1] Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower. 8

Credit does not necessarily require money. The credit concept can be applied in barter economies as well, based on the direct exchange of goods and services (Ingham 2004 p. 1219). However, in modern societies credit is usually denominated by a unit of account. Unlike money, credit itself cannot act as a unit of account. Movements of financial capital are normally dependent on either credit or equity transfers. Credit is in turn dependent on the reputation or creditworthiness of the entity which takes responsibility for the funds. Credit is also traded in financial markets. The purest form is the credit default swap market, which is essentially a traded market in credit insurance. A credit default swap represents the price at which two parties exchange this risk the protection "seller" takes the risk of default of the credit in return for a payment, commonly denoted in basis points (one basis point is 1/100 of a percent) of the notional amount to be referenced, while the protection "buyer" pays this premium and in the case of default of the underlying (a loan, bond or other receivable), delivers this receivable to the protection seller and receives from the seller the par amount (that is, is made whole). In modern days cedit is considered to be the life blood of every business .Today now business can survive without credit . especially in the field of automobile credit plays an important role Due to credit the demend increase it helps the businees community .Also the purchaser is also benefited due to the various credit schemes launched by the banks

HISTORY
The Bank was Incorporated on 5th January at Baroda. ICICI Bank was promoted by ICICI and erstwhile SCICI Ltd. and received the Certificate for Commencement of Business on 24th February. It does banking business of all kinds. 9

It was founded as an institution to provide quality banking services using state-of-the-art technology. The Bank has established a well diversified branch network with 24 branches in 15 centre covering 12 states. The bank set up a fully computerised environment with the State-of-theart technology at all offices continuously upgrading its strong systems and procedures with special emphasis on risk management.1996 The deposit products and other services of the bank were branded with names such as `Maxi cash' for services accounts, `Money Plus' for Current Account, `Quantum' for fixed deposit account, `Power Pay' for payroll accounts treasure chest for locker facilities and `Trice' ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, sentry into new business segments, higher market share in various business segments, particularly fee-based services 10

and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger

of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. 11

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost Sdeposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI 12

Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

DJHGHGFHGFHEYTRYEFYWU Conclusions

Chapter 9 Chapter-10 Chapter-11 Bibliography Annexure

13

Management - ICICI Bank

K V Kamath N S Kannan Rajiv Sabharwal Homi Khusrokhan Swati Piramal Tushaar Shah Chairman Executive Director & CFO Executive Director Director Director Director Designation Managing Director & CEO Name Chanda Kochhar K Ramkumar Sridar Iyengar Arvind Kumar M S Ramachandran V Sridar Executive Director Director Director Director Director Company Background - ICICI Bank Industry Name House Name Collaborative Country Name Joint Sector Name Year Of Incorporation Year Of Commercial Production

Finance - Banks - Private Sector ICICI Group N.A. N.A. 1994 N.A.

14

Regd. Office Address District State Pin Code Tel. No. Fax No. Email : investor@icicibank.com

"Landmark",, Race Course Circle Vadodra Gujarat 390007 0265-6617260,0265-6617200 0265-6617341,0265-2339926 Internet : http://www.icicibank.com

Auditors

S R Batliboi & Co. Registrars Name 3i Infotech Ltd Address Tower, No.5, 3rd to 6th Floor, Isnternational Infotech Park, Vashi, New Mumbai - 400703, Maharashtra Tel. No. : 022-67928000 Email : investors@3i-infotech.com Source : Dion Global Solutions Limited Location Details - ICICI Bank Location Type Registered Office Address Landmark, Race Course Circle Vadodra - 390007 Gujarat - India Phone : 6617260, 6617200 Fax : 6617341, 2339926 Email : investor@icicibank.com Internet : N.A. ICICI Bank Towers, Bandra-Kurla Complex Mumbai - 400051 Maharashtra - India Phone : 26531414 Fax : 26531122 Email : ir@icicibank.com Internet : N.A. Fax No. : 022-67928095 Internet : http://www.3i-infotech.com

Corporate Office

Regd. Office Address District 15

"Landmark",, Race Course Circle Vadodra

State Pin Code Tel. No. Fax No. Email : investor@icicibank.com

Gujarat 390007 0265-6617260,0265-6617200 0265-6617341,0265-2339926

SERVICES OFFERED BY ICICI BANKS

CRDIT CARDSICICI bank now powerful co-branded card the icici HPCL credit card with unmatched feature and adavantages .Beside this we also offer three type of credit cards soild gold sterling silver and True Blue We also provide add on cards which can be gifted to your family members with pre-set monthly spending limits feature introduced for the first time in India .we have also provides you with a host of the other featurelike icici plus -a special rewards programe ,dial a draft cash adavance facility travel benefit etc you can also ccess your card information through internet banking

HOME LOANICICI bank brings you best deals in home loans with low interst rates abd diirsteo .Loans ranging from rs 1 lac to rs 1 crore are avaible for construction purchasing or extending a house or flat with a maximum of 85 % of the cost of the property or construction .Both adjustable and fixed rate loans are avaible repayment period can extend up to 30 years .with 16

every home loan you also get a free personal accident insurance cover .also there is no fee on part pre-payment.

CAR LOANICICI Bank brings you the best options for financing car. You can avail of finance upto 90% of the value of car .Most attractive interst rate coupled with customized loan options and tenure ensure the best possible deal for you we also have special offers for select credit cads owners and existing car /loan customer .finance on used cars is also available on attaractive terms .Alternatively you can avail of a loan on your exixting car .ICICI bank car loans are tailor made to suit all your needs and geared to give you a hassle free experience

PERSONAL LOANS
ICICI Banks s personal loans helps you and your family get more out of out of life .whether it is about your childs education ,furnishing you home ,buying a computer your childs marrage ,holiday with your family or any other reson .with ICICI banks personal loans you can turn all your drems into reality and bring home the

CONSTRUCTION EQUIPMENT LOAN

ICICI Banks offers equipment loans are specifically designed for financing the ourchase of equipment for office space loans ranging from rs 30000 to 10 crore are available for purchase pcs laptop servers,printers /MFD, copiers scanners Fax networking equipment ACs gensets wide format priners CTP photolable etc these loans are available for proprietors firms pvt ltd companies

TWO WHEELER LOANSwhy use public transport when you own vechicle ICICI bank makes this possible in many ways through its customized product and service aimesd at providing you with te best value just fill up an application form provide a few basic documents and avail up to 85% finance on the wheeler of your choice

LOANS AGAINST SECURITIES

ICICI bank provides loans by way of an overdraft facility against the pledge of dement shares you can avail of this facility from a large list of approved scripes shares single scrip lending is available the interest rates applied are the best in the industry .loan 50% ot the market value of the share is sanctioned 17

and you are debited with the interst on monthly basis only on the amount of money you have utilized this facility comes to you with a current account a free ATM card phone banking ad internet banking you can transfer a high interest loan tken fom any other bank

OBJECTIVE OF THE STUDY

18

OBJECTIVE OF THE STUDY

1 )detailed study of sanctioning procedure in ICICI 2) Comparative study of car loans of different banks or institutions o o o o o the detail study of car loan of different banks or involves . to study different car loan schemes to study how a file is appraised to study the documents required for sanctioning a loan to study the eligibility for a loan to study the calution of loan am

3) Covers the widest range of cars and multi utility vechicles in India 4) Avil 100% finance on you favourite car 5) Flexble repayment options ranging from 12 to 84 months 19

6)Borrow up to 3 times your annual salary (for salaried professionals )and 6 times your annual income(for self employed professional) 7) speedy processing within 48 hours 8) repay with easy EMIs 9) attractive car loan plans

SCOPE OF THE STUDY

Study is limited to nagpur and ICICI Bank car loan is the area of study .In this project how a particular case of car loan sanctioned is studied taking into consideration the various documents required different rations considered for calculating a loan amount and how a file is apprised is also studied effects have also been made to find out why a particulare case is rejected. A comparison is between different financial institution on different norms, efforts have been to find out how many loan application or case come in ICICI Bank through how many of them are sanctioned and how many of them are rejected.

20

IMPORTANCE OF THE STUDY

Car Loans from ICICI Bank are extremely convenient, flexible and quick. We offer flexible schemes, attractive interest rates, and quick & hassle-free application process at the click of a mouse. At the same time, we ensure that the repayment terms are equally convenient for you. Auto finance is vey important for the incrasing for middle income group Auto finance helps the deals to expand the business Auto finance are helpful to increase the profit of the bank Auto car loan offers a person the freedom to get a vechicle that might last them longer and thus can be long life companion Repayment tenure ranges from 1 year to 5 years. 21

o o o o o

You may change the tenure of the loan before the loan is disbursed. The interest rate & EMI would change accordingly. The repayment due dates for the loan are 1st and 15th of every month and would depend on the date of disbursement. Payment due dates cannot be changed.

You can make the Payments through post-dated cheques (PDCs) Repayment option through Direct Debit Mandates is also available for all ICICI Bank account holders. Option of repaying through ECS is also available in select cities

Payments through cash or credit cards are not accepted.

You may change the PDC' s in case your Bank Account is changed . However, we would require verification of signatures by new banker. A nominal fee of Rs.500/- (Swap Charges) would be charged for exchange of cheque .

A full pre-payment of the loan is accepted. Part pre-payment is not allowed. My Savings Reward points on every successful EMI payment through Auto-debit mode.

22

RESEARCH METHODOLOGY

RESARCH METHODOLOGY
MEANING OF RESEARCH METHODOLOGY
Research as a scientific and systematic search for pertinent information on a specific topic .in fact research is an art of scientific investigation .it is an academic activity as such the term should be used in a technical sense of knowledge making for its adavancement. it is a per-suit of truth with the help of study , observation comparison and experiment .In short, the search for knowledge through objective & systematic method of finding solution to a problem is Research Reaserch methodology is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by a researcher in studying his rserch problem 23

along with the logic behind them .it is necessary for the resrarcher to know not only the research method / but also the methodology . Thus when we talk about research methodology we not only talk of the resrch methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the research himself of by others

DATA COLLECTION
SOURCE OF DATA: There are several ways of collecting the appropriate data which differ considerable in context of money costs time and other sources at primary data can be collected either through experiment or through survey. But in the case of a survey data can be collected by any one or more

TYPES OF DATA 1) PRIMERY DATA 2) SECONDARY DATA 24

PRIMARY DATA
Collection of the data is based on the overview with officials. Data was also collected by taking information from the employee of the department getting information by the observation and discussion with the head of department The existing customer of ICICI bank LTD bank as well as customer who have car loan from other financial institution. 1) Interview 50 peoples, 10 executies 2) questionnaires 25 peoples , 10 executive

SECOUNDARY DATA
Data has been collected from various manuals/ product brouchers Annual Report of the Company

REASERCH APPROCH 1) POPULATION Number of people taking car loan 25

2) SAMPLE UNIT- Number of people taking car loan from ICICI banks Ltd & number of people taking can loan from other financial Institution 3) SAMPLE SIZE- People taking loan from ICICI Bank & 50 people taking loan from institution

26

HYPOTHESIS

HYPOTHESIS
1) To study the requirement of credit finance 2) At least 90% of the application coming to ICICI are approved and sanctioned 50% of cases are rejected just because ICICI takes into account only the renewed companies and those about whom ICICI has information 3) To understand the Time required for sanction then loan at less as compare to other financial institute 4 )The customer also don't have much problem while documentation is not very rigid Customer have better experiance in ICICI than any other bank 5) long as well as short term borrowing 27

DATA ANALYSIS & INTERPRETATION

28

DATA ANALYSIS AND INTERPRETATION

The following analysis was done to obtain the finding in accoradance with our objective determined during the cource of study to know about comparative study of home loan schemes offered byn HDFC bank and icici bank and assessing the level of consumer satisfaction following question asked in the questioery was filled by 300 respondents .ut of 100, 35 are femailes and 65 are male .The age of the respondents lie between 20 yers to 60 years there are 15% respondent lie between age group of 20-30 Years 26% respondents are of 30-40 years of age 30% respondents are grp of 30-40 14% respondents lie between age grup of 40-50 years and 15% respondents are of age grup 50-60

29

following analysis was done to obtain the finding in accoradance with our objective determined during the cource of study to know about comparative study of home loan schemes offered byn HDFC bank and icici bank and assessing the level of consumer satisfaction following question asked in the questioery was filled by 300 respondents .ut of 100, 35 are femailes and 65 are male .The age of the respondents lie between 20 yers to 60 years there are 15% respondent lie between age group of 20-30 Years 26% respondents are of 30-40 years of age 30% respondents are grp of 30-40 14% respondents lie between age grup of 40-50 years and 15% respondents are of age grup 50-60 ICICI Bank offers car loans up to 90% of the ex showroom price of the car. Loan tenure can be extended up to 6 years which makes it easier to repay ICICI bank is the top financier for car loans in India . the bank has a network of more than 1800 channel parteners in the more than 1000 locations

HDFC Bank loan can be availed for purchasing new and use cars .brif information about the loan specific reqirements of salaried and self employed have been mentioned below for partenership firms private limited companies and public limited companies, seprate set of rules and regulation have been set up

Which bank provide car loan at lower rate of interst

BANK ICICI HDFC OTHER

NO OF PERSON 41% 28% 31%

30

45 40 35 30 25 20 15 10 5 0 HDFC ICICI OTHER BANK

ANALYSIS
Among 300 Respondent 41% ICICI Bank Provide car loan at lower rate of interest 27 % HDFC bank to Provide car loan at lower interest 31% other bank provide car loan at lower interest

31

Are you satisfied by the time taken in sanctioning the loan

Yes 35 NO 12

40% 35% 30% 25% 20% 15% 10% 5% 0% 0% YES NO

ANALYSIS Among 300 respondent 35% persons satisfy with the bank or financial institution From where they have availed the car loan but 12% persons are not satisfied with the bank or financial institution from where they have car loan

32

ICICI BANKCAR LOAN

Turn your dream into reality. Own that new car you have always desired, with a little help from ICICI. The bank offer cars loans up to 90% of the ex-showroom price of the car. Its interest rates would pleasantly surprise you. What's more, you can take up to 5 years to repay the loan. ICICI Bank offers new car loans with fixed rate option only. Turn your dream into reality. Own that new car you have always desired, with a little help from ICICI. The bank offer cars loans up to 90% of the ex-showroom price of the car. Its interest rates would pleasantly surprise you. What's more, you can take up to 5 years to repay the loan. ICICI Bank offers new car loans with fixed rate option only. Applying for the ICICI bank car loan

Eligibility Criteria :

Salaried Minimum age 25 years to 58 years at the time of maturity of the loan Income Gross annual salary of at least Rs. 2.5 lac per annum Job Experience The total employment stability should be more than 2 years and current employment stability of minimum 1 year Minimum Annual Income Rs 100000 net annual income Telephone must at residence

33

Self 28 years to 65 years at the time of maturity of the loan/At least 3 years of company existence Gross annual income of at least Rs. 2 lac per annum; Firm should have a minimum PAT (profit after tax) of Rs. 1.25 lakhs Business stability should be more than 3 years Telephone : must at residence

Partnership firms

minimum income ;net profit rs 60000 pa for standard cars and rs 100000 pa for mid sized and pemimum cars minimum turnover ; rs is 4.5 lacs

One phone at least at business and at business and at residence of

loan executing partner

Private Limited Company

minimum income ;net profit rs 60000 pa for standard cars and rs 100000 pa for mid sized and pemimum cars minimum turnover ; rs is 4.5 lacs

One phone at least at business and at business and at residence of

loan executing partner

34

Document Required

Salaried
Passport Copy/ Voters ID card/ Driving Licence/Copy of PAN Card

Ration card/Driving licence/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card Birth Certificate or 10th Class Passing Certificate Latest Salary slip or salary certificate 2 Years Form 16 of the previous Financial Year or latest Income Tax Returns.

Signature Proof.

Self - Employed Individual:

Passport Copy/ Voters ID card/ Driving Licence/Copy of PAN Card Ration card/Driving licence/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN CARD Birth Certificate or 10th Class Passing Certificate Income Tax Returns of 2 previous financial years.

35

Partnership Firms, Societies & Companies :

Income

Tax Returns of 2 previous financial years along

Profit & Loss Account Statements and Balance Sheets of both year Signature Proof Partnership Firms: Partnership deed and Letter signed by all partners authorizing one partner to execute the required Car Loan. Societies and Companies: Resolution by Board of Directors (or such managing body) & Memorandum & Articles of Societies and Companies: Resolution by Board of Directors (or such managing body) & Memorandum & Articles of Association (or Society/Trust deed).

36

BEST GUIDE TO CARS SEGMENT AND FUNDING

segment A:Mini

Ex-showrum value 2.15 2.2-4.5

Funding 80-100 90-100 75-100

Example Maruti 800 Alto,swft,indica,santro,Getz

Estillow A-Star Palio ,I 10

Compact

Mid -Size

4.5-10.0

I 20,accent,swift,Dzire Honda city Honda jazz verna SX4 Line Ikon Fusion Optra Fabira indiga Toyata corolla civic Skoda Ocatvia Hyundai Elantra Optra magnum Honda accord camry sonata skoda laura superb passer jetta teana Mercedes BMW audit porche and all other imported Omini Innova Xylo scrpio tavera bolero victa safari

Executive

9.5-16.0

75-95

Premimum

16.0-25.0

75-90

Luxury

25.0+

75-85

Muv

2.20+

75-90

37

Service Charges If you are looking for flexible schemes, quick processing of your loans, attractive interest rates at the click of a mouse, then your search ends here. ICICI Bank Car Loans is the Most Preferred Financier for car loans in the country and offers you all the above with unbelievable ease.
Our car loan interest charges differ according to the car model, the tenure of the loan, the customer and his location. Description of Charges Car Loans New Car Gross Loan Processing Documentation Amt Fee Amt Charges <2.5 L Rs.2500/Rs.350/2.5 L to 3.9 L Rs.3500/Rs.350/4 L to 4.9 L Rs.4000/Rs.350/5 L to 9.9 L Rs.4200/Rs.350/>10 L Rs.5000/Rs.350/Actuals Part prepayment of the loan is not allowed Lower of the two amount given below. 1. 5% of principal outstanding or 2. Interest outstanding for unexpired period of the loan. 2% per month on the outstanding installment Rs. 500/- per transaction Rs. 400/- per return Rs. 200/- per schedule Rs. 200/- per statement Rs. 100/- per statement Rs. 500/- per NOC Rs. 500/- per NOC 38

Non Refundable Loan Processing Fees and Documentation Charges

Stamp Duty Prepayment Options Prepayment Charges Charges for late payment (loans) Cheque Swap Charges Cheque return charges^ Amortisation Schedule Charges Statement of Account Charges Prepayment Statement Charges Duplicate NOC Charges NOC for conversion from Petrol to LPG/CNG

Revalidation of NOC Charges NOC to convert from Private to Commercial Registration NOC to convert from Commercial to Private Registration Charges for changing from fixed to floating rates of interest Charges for changing from floating to fixed rates of interest

Rs. 500/- per NOC Rs. 2000/- per NOC Rs. 2000/- per NOC Not Applicable. 1.75% on principal outstanding

Car Loan Interest Rate

Car Loans Tenure of credit facility Type of credit facility Up to 23 months 24-35 months Rate of interest Loan amount less than Rs. 0.25 mn = Rs. 2,500 Rs. 0.25 to Rs. 0.39 mn = Rs. 3,500 New Car Loans 15.75% to 16.50% 13.75% to 15.50% 11.50% to 14.25% Rs. 0.40 to Rs. 0.49 mn = Rs. 4,000 Rs. 0.50 to Rs. 0.99 mn = Rs. 4,200 Equal to and more than Rs.1.00 mn = Rs. 5,000 36-60 months Processing fee

Type of credit facility Used Car Loans :

Rate of interest 16.50% to 18.00%

Processing fee Rs. 4,000 OR 2% of loan amount, which ever is lower

39

Specific interest rate applicable to a customer would be dependent on segment, asset category and location. Stamp duty charges shall be extra as applicable. Additional documentation charges of Rs.350/- applicable.

Interest rate detailed rate and EMI per r 100000 as per the car of your selection . Below table is applicable for the following cars Ambassadar tata estate Mercedes ben 2 tata sumo tata sierra maruti gypsy Tenor in months Interest rate EMI (per Rs Lac 12 16.5% 8973 24 16.5% 4853 36 16.5% 3492 48 60 -

Maruti baleno opel corsa ford Ikon Mitsubishi Lancer opel Astra Daewoo cielo hyodai accent Honda city

Tenor in months Interest rate EMI (per Rs Lac

12 15.75% 8944

24 15.75% 4821

36 15.75% 3458 40

48 15.75% 2785

60 15.75% 2387

Tata indica , dacwoo nexiea dacwoo matiz maruti zen maruti esteem hyondai Santro toyotta qualies

Tenor in months Interest rate EMI (per Rs Lac

12 16% 8954

24 16% 4832

36 16% 3469

48 16% 2897

60 16% 2400

Maruti omini maruti 800

Tenor in months Interest rate EMI (per Rs Lac 12 16.25% 8964 24 16.25% 4843 36 16.25% 3481 48 16.25% 2809 60 16.25% 2412

41

REPAYMENT TERMS

ICICI Bank Car Loans offers flexible schemes, attractive interest rates, and quick & hassle-free application process at the click of a mouse. At the same time, we ensure that the repayment terms are equally convenient for you.

ICICI Bank offers new car loans with fixed interest rate. In Fixed interest rate, the interest rate on the car loan will remain fixed during the tenure of the loan.

Car Loans

Repayment tenure ranges from 1 year to 7 years for new car loans. You may change the tenure of the loan before the loan is disbursed. The interest rate & EMI would change accordingly. The repayment due dates for the loan are 1st and 15thof every month and would depend on the date of disbursement. Payment due dates cannot be changed. You can make the Payments through post-dated cheques (PDCs) Repayment option through Direct Debit Mandates is also available for all ICICI Bank account holders. Option of repaying through ECS is also available in select cities. Payments through cash or credit cards are not accepted. You may change the PDC's in case your Bank Account is changed . However, we would require verification of signatures by new banker. A nominal fee of Rs.500/- (Swap Charges) would be charged for exchange of cheques. A full pre-payment of the loan is accepted. Part pre-payment is not allowed. 42

Basic reson for rejection

There are basically three grounds on which a case is rejected

ON CREDIT GROUNDS INCOMEThe lowest salary acceptable of ICICI is Rs 5000 on the basis of an applicants income if elgible for criteria amount which is less than the amount which is less than the amount which actually demanding for then in that case the application will be rejected if The not willing to accept the amount

INSTALLMENT INCOME RATIOInstallment income ratio is the standard ratio which ICICI considers while calcuting amount elgibility FORMULA: Installment Gross Monthly income Generally ranges between 25% ti 35% .if at all an application comes below or above that case rejected

Fixed obligation income ratiofixed obligation ratio is the standard ratio which ICICI consider while calculating the loan
amount Formula ICICI insurance +other fixed monthly obligation Gross monthly income 43

Personal grounds
Retirement ageICICI does not give loan to pensioners maximum period for the repayment of loan in case of car loan is 5 years thus if the term of loan n case of car loan Thus if the term loan which the applicant has specified is more than the number of years of remaining service then the application is rejected

Defaulter ICICI does not give loans to defaulters. If a person bank pass book show that his last 2 to 3 cheques have continusly bounced then in that case ICICI will not take the risks of giving him loan and will reject his loan

COMPANY STATUS
ICICI Bank in case of application received from employee of companies which are not renewed companies or those which come in the negative list of ICICI rejects the loan applicaton is sick units .if 44

ICICI comes know that the company in which the application is not working that means PF deduction in that case also ICICI may reject the case If the company s financial status show that the company is not having good turnover or profits or company have a huge accumulated losses or where the company is higher labour and employee turnover in such case it would be rejected

COMPARATIVELY STUDY OF VARIOUS FINANCE PROVIDERS WITH ICICI

Most banks consider your age, annual income, work experience in the current organization and your total work experience, educational qualification and your profession to decide on the amount of car loan. Loan eligibility will change for salaried and self employed individual and will also differ from one city to another.

Bank

Minimum Age (in Minimum Income (in Minimum Work yrs.) Rs.) Experience (yrs.) Salaried Self Salaried Self Salaried Self

Residence Status (yrs.) Salaried Self

45

Gross annual income of The total 28 years to at least Rs. employment 65 years at 2 lac per stability Gross 25 years to the time of annum; should be Business annual 58 years at maturity of Firm more than 2 stability InformationInformation salary of at the time of the loan/At should years and should be Not Not least Rs. ICICI maturity of least 3 have a current more than Available Available 2.5 lac per Bank the loan years of minimum employment 3 years annum company PAT stability of existance (profit minimum 1 after tax) year of Rs. 1.25 lakhs Minimum Minimum net income of business Rs. 1.5 income of Minimum Lac p.a. Rs. 1.5 Minimum 2 3 years Valid Valid 21-60 21-65 for Lac p.a. years same in Residence Residence Years Years selected for continuous line of proof proof Axis cbank models selected employment business and Rs. 2.5 models Lac p.a. and Rs. 2.5 for others Lac p.a. for others

46

FINDING &CONCLUSION

47

FINDING
however what is it that worries the auto loan or car loan borroers its the interst rate chargedto them .In last few months we have seen a huge fluctions is the interst rates The interst rates in India are going up causeing a problem for a loan borrowers But fortunately there is some respite for loan borrowers - those borrowers who have a good credit profile

Its no longer true that banks treat one and every customer in the same way .The same applies to the interst rate that is charged -its varries from bank to bank andwithin the same bank it varies from customer to customer depending upon their credit profile A part from that the banks or financial companies also decide the auto loan interst rate based upon your salary financial situvtion residentl statues resident allocality, previus and existing loans and their repayment For example ICICI bank car loan OR ICICI bank auto loan has the biggest difference in terms of loan offeredfor loan two wheeler purchase They even put the interest rates higher in branches where here we been more defauler in the past

48

CONCLUSION
For over five decades, the ICICI Bank is contributing its best for the economic growth and development of the country. Promoting Inclusive Growth has been a priority area for the group from both social and business perspective and it is keep on working for the nation s development through its various products and services as well as through development initiatives and community outreach.

At least 90% of the application coming to ICICI are approved and sanctioned so hypothesis is false 40 % of casuse are rejected just because ICICI takes into account only the renowned companies and those about whom ICICI has information so hypothesas is false Time required for sanction the loan at ICICI is less as compare to other financial institute. The customer also don't have much problem while documentation is not very rigid. Sanctioning Loan amount for expensive Luxurious car in ICICI is very easy so hypothesis is true.

49

SUGGESTION & RECOMMEDATION

SUGGESTION & RECOMMEDATION

50

Since there is cut competition in car finance sector and insert are cutting down day by day ICICI needs to concentrate more on following points

1) ICICI mould start financial the commercial vechicle like auto tracter buses etc 2) sence there is lot of comprtiton in car finance ICICI should start giving some additonal benefit to the customer like free insurance

51

BIBLOGRAPHY

BIBLIGRAPHY

Books52

1]. Beri - Marketing Research (Tata McGraw Hill, 4th Ed.) 2]. Bhole L M - Financial Institutions and Markets (Tata McGraw-Hill, 3rd edition, 2003)

Websites-1) www.icici.com 2) www.research & markets.com 3) www.scribd.com 4) www.business-standard.com/special/bankannual/2003 /tech.htm 5) www.banknetindia.com/banking/bsoftware.htm 6) www.iloveindia.com/finance/bank/nationalised-banks/index.html 7) www.en.wikipedia.org/wiki/Private_bank 8)www.en.wikipedia.org/wiki/Bank website www.altavista.com

53