Professional Documents
Culture Documents
ON
BANK OF INDIA AND PROJECT
WORK
ENTITLED AS
“LOAN REIMBURSEMENT POLICIES
OF BANK OF INDIA”
BY
Deepak Kumar Gupta
(2008 –10 )
(20TH MAY TO 15TH JULY, 2008)
BIRLA INSTITUTE OF TECHNOLOGY
MESRA (RANCHI)
EXT. NOIDA
1
A
PROJECT REPORT
ON
FOR
BANK OF INDIA
BY:-
MBA/4550/08
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF
MBA PROGRAM
MESRA, RANCHI
2
Acknowledgement
To acknowledge all the persons who had helped for the
fulfilment of the project is not possible for any
researcher but in spite of all that it becomes the
foremost responsibility of the researcher and also the
part of research ethics to acknowledge those who had
played a great role for the completion of the project.
3
Preface
Decision making is a fundamental part of the research
process.Decisions regarding that what you want to do,
how you want to do,what tools and techniques must be
used for the successful completion of the project. In
fact it is the researcher’s efficiency as a decision maker
that makes project fruitful for those who concern to the
area of study.Basically when we are playing with
computer in every part of life, I used it in my project
not for the ease of my but for the ease of result
explanation to those who will read this project. The
project presents the role of financial system in life of
persons. I had toiled to achieve the goals desired. Being
a neophyte in this highly competitive world of business,
I had come across several difficulties to make the
objectives a reality. I am presenting this hand carved
efforts in black and white. If anywhere something is
found not in tandem to the theme then you are
welcome with your valuable suggestions.
4
Table of content
Acknowledge
Preface
Chapter 1 :- Introduction: Executive summary of
the project
Chapter 2 :- Industry Introduction &BANK OF
INDIA
Loan
Types of loan
Loan processing life cycle
Policies on collection of dues
5
Introduction: Executive
summary of the project
6
- Sensitivity of the industry was also a very frequent
factor which was very important to measure correctly.
- Area covered for the project while doing job also was
very large and it was very difficult to correlate two
different
customers/respondents views in a one.
Chapter 1
IDBI BANK LTD.
- Every financial customer has his/her own need and
according to the requirements of the customer product
customization was not possible.
So above challenges some time forced me to leave the
project but any how I did my project in all
circumstances. Basically in this project I analyzed that-
What are the loan reimbursement polices ,What factors
are effecting banks loan reimbursement polices and
what are the difference between Bank Of India’s polices
and other banks polices.
7
Industry status & Bank of
India interface
Industry Introduction
8
among the nationalised banks. The bank has 3021
branches in spread over all states/union territories
including 136 specialised branches are controlled
through 48 Zonal offices. There are 28 branches are in
abroad.
9
Europe, Paris in 1974. The Bank has sizable presence
abroad, with a network of 28 branches (including five
representative offices) at key banking and financial
centres viz. London, New York, Paris, Tokyo, Hong-
Kong and Singapore. The international business
accounts for around 17.82% of Bank's total business.
LOANS
An arrangement in which a lender gives money or
property to a borrower and the borrower agrees to
return the property or repay the money, usually along
with interest, at some future point(s) in time. Usually,
there is a predetermined time for repaying a loan, and
generally the lender has to bear the risk that the
borrower may not repay a loan.
Types of Loans
There are various types of loan such as home loan,
corporate loan, education loan, car loan, retail loan,
personal loan and many others which are provided by
the Bank Of India. These loans are comes under two
sectors the priority sector and non priority sector.
10
Priority sector comprise agriculture, small scale
industries, small business, retail trade, and educational
loan. On the other hand in non priority sector comprises
home loan, personal loan etc. I am explaining here
about those loans which are frequently provided by the
bank.
11
Home loans in India
12
Maximum loan amount is Rs.300 lacs and
repayment ranges upto 20 years, with reasonable
margin and nominal processing charges. No
commitment /administrative charges.
Eligibility
Salaried employees, Professionals like Doctors,
Lawyers, Engineers, Chartered Accountants, and Self-
employed persons. Requests are also considered in
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special cases from Group of individuals, NRIs, PIOs,
HUF, Prop. Firm, Partnership firms and corporate.
Purpose
• To purchase/construct house/flat.
• To renovate/extend/repair existing house/flat.
• To purchase a plot of land for construction of
house.
• To acquire household articles along with the
house/flat-for furnishing the house/flat.
Quantum of Loan
For construction/purchase of a house/flat-Rs.300 lacs
• Repairs/renovation/extension/addition to house/flat
- Rs.20 lacs
Processing charges
For loans upto Rs.30 lacs One time @ 0.55% of loan
amount min. Rs. 3000/- and max. Rs.10000/-
For Loan over Rs.30 Lacs upto Rs.50 lacs – One time
14
flat Rs.15,000/-
For Loan over Rs.50 Lacs upto Rs.1.00 crore – One time
flat Rs.20,000/-
Loans over Rs.1.00 crore – One time flat Rs.25,000/-
Loans over Rs.3.00 crores – One time flat Rs.50,000/-
For Partnership firms & Corporate Borrowers –
Processing charges will be double that of applicable to
individuals
For Rural areas –Processing charges will be 50% that of
applicable to individuals in respect of loans availed by
borrowers from rural areas from the Rural Branches
Margin
For Loan upto Rs.10 Lacs – 15%
For Loan over Rs.10 Lacs – 20%
Note:
Cost incurred by the proponent in the form of land
already purchased/acquired by him/her (from their own
sources) can be accepted as part of above said margin
at the request of proponent. Liquid securities such as
Banks TDR, NSC, KVP etc., can also considered as
Margin, ensuring higher quantum of loan.
Fees / Charges
• No administrative fees
• No commitment charge
Prepayment charges :
i) No charges, if pre-payment is made from own sources of the
borrower ii) 0.65% p.a. on the outstanding loan amount for remaining
maturity of the loan, subject to max.2.25% of outstanding loan
amount in case of takeover by other bank/FI.
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Other Charges : Legal Expenses/Valuation
Charges/Stamp Paper
Charges At actual –Loan Agreement copy charge : as
applicable
Rate of Interest
Disbursement in advance
Request for 100% disbursement before completion of
house/flat can be permitted subject to availability of
additional security of 125% of the unsecured portion of
loan amount to be disbursed
Security
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Equitable Mortgage (1st charge) on land/flat/house.
Third Party guarantee (if mortgage could not be
created at the time of disbursement).
Additional Incentives
i. Free Personal Accident Insurance cover for the
borrower (covering accidental death as well as
permanent total disablement) as per terms of insurance
policy covering loan outstanding as on the date of
accident.
ii. Loan amount of Rs.100,000/-(15% of home loan -
max.Rs.1 lac) for furnishing the house/flat at a rate of
interest as applicable to housing loan under the
scheme. Life Insurance covers to housing loan
borrowers against risk of death during tenure of loan
under Group Insurance Scheme in tie up with ICICI
Prudential Life Insurance Co. Ltd.
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C and claim proceeds are tax free u/s 10(10D), as
per prevailing Income-tax laws.
Others
Substantial Tax benefits available (as per applicable
Income-tax laws) on:-
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• Father/Mother should be co-borrower.
b) ELIGIBLE COURSE:
(i) Studies in India (Indicative list):
20
3. EXPENSES CONSIDERED FOR LOAN :
• Fee payable to
college/school/hostel/Examination/Library fee.
• Purchase of
books/equipments/instruments/uniforms.
• Caution deposit/building fund/refundable deposit
supported by Institution bills/receipts.
• Travel expenses/passage money for studies
abroad.
• Purchase of computers - essential for completion of
the course.
• Insurance cover for the student.
• Any other expense required to complete the course
- like study tours, project work, thesis, etc.
4. QUANTUM OF FINANCE :
Need based finance subject to repaying capacity of the
parents/students with margin and the following
ceilings :
5. MARGIN :
Upto Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5%
Studies Abroad : 15%
· Scholarship could be included in margin.
· Margin to be brought in on year to year basis as and
when disbursements are made.
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6. SECURITY
Upto Rs. 4 lakh : No security
Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security
in the form of a suitable third party guarantee.
Above Rs.7.5 lakh : Collateral security of suitable value
or at the discretion of the Bank suitable third party
guarantee along with the assignment of future income
of the student for payment of instalments.
The security can be in the form of land/building/Govt.
Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks
Term Deposit etc., in the name of
Student/Parent/Guardian/Guarantor with suitable
margin.
9. REPAYMENT:
Repayment holiday/Moratorium : Course period + 1
year or 6 months after getting job, whichever is earlier.
The loan is to be repaid in 5-7 years after
commencement of repayment
11.OTHER CONDITIONS :
i) Loan to be disbursed in stages as per requirement / demand,
directly to the Institution/ Vendors of
books/equipments/instruments to the extent possible;
ii) Student to produce mark list of previous term/semester
before availing next installment ;
iii) Student / Parent to provide latest mailing address, in case of
any change ;
iv) Student /Parent to inform Branch immediately
on change of course /completion of
studies/termination of studies/ any refund of fees
by college /institution /successful placement
/obtention of job/change of job etc.
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Bank Of India Personal Loan
The Bank Of India Personal Loan is of two types. They
are known as Star Personal Loans and Star Mitra
Personal Loan.
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• Eligibility: All Phys both salaried and self-employed,
All Physically Challenged Minors through their
Parents/Legal Guardians.(No advances to middle-
men and NGOs).
• Margin: 10%
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physically Challenged Individuals –
Types of advance
Demand/Term Loan/Overdraft (reducible as per
repayment schedule) Overdraft limit (not reducible as
per repayment schedule) maximum upto Rs.1 lac to
confirmed permanent employees of Central/State
Govt./Reputed Corporates and PSU'.
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Purpose Clean/Unsecured Secured loans
loans
Repayment of
Marriage expenses existing housing
of self, son, loans from other
daughter or a banks/Financial
dependent near Institutions, etc.
relative.
Education of
Medical Expenses self, spouse,
incurred/to be children, near
dependent
incurred for self, relatives.
spouse, children,
dependent near Purchase
relative. ofconsumer
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durables,
For education of computers,
self/spouse/ professional
children/ near equipments et
dependent
relatives.
20 times of
Gross
10 times of net
monthly
monthly
emoluments in
emoluments in case
case of salaried
of salaried
employees OR
employees
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OR 100% of gross
50% of gross average annual
annual income as income as
per last Income Tax per last three
Return for Income Tax
Professionals/Indivi Returns for
duals of high Professionals/
Rate of
networth Individuals of
Interest high
(On daily networtht
reducing
balances)
At 0.50% below
BPLR Min.
0.25% above BPLR 11.50% p.a. at
12.25% p.a at monthly rests.
Repayment monthly rests. Interest
Interest concession concession to
to women - 0.50% women - 0.50%
[All borrowers to be [All borrowers to
women] For Senior be women]
Citizens – 10.75%
Financing secured
under tie-up
arrangement – Maximum 60
11.50% Equated
monthly
36 Equated instalments
monthly w.e.f. one
instalments w.e.f. month after first
one month after disbursement
first disbursement. from loan
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Exceptional cases account.
upto 60 months
Security
Equitable/Legal Mortgage of commercial or residential
properties.
Hypothecation charge on assets acquired.
Collateral security in the form of pledge of gold/gold
ornaments, NSC/Indira Vikas Patra, Bonds, Assignment
of LIC policies, Relief Bonds etc.
Processing/Handling charges
One time @ 1.10% of loan amount Min. Rs.1000/- and
Max. Rs.5000/-
Pensioners: One time @ 1.10.% of loan amount, min.
Rs. 500/- and max. Rs. 1,100/-.
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No processing charges for Senior Citizens (60 years &
above)
Purpose
1. To meet the credit needs of trade, commercial
activity, other
general business, Profession as also for their
bonafide requirements.
2. To meet marriage or medical or educational
expenses of family members including near
relatives.
3. To undertake repairs/renovation/extension to the
residence/commercial property.
4. Purchase of consumer durables.
5. To purchase/construct house/flat, purchase of plot.
6. To purchase 2/4 wheeler vehicles.
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7. For going on pilgramage/tours/excursions, etc.
8. Repayment of existing loans from other Banks/FIs.
Type of advance
Demand/Term Loan/Overdraft (reducible as per
repayment schedule).
Overdraft facility (not reducible as per repayment
schedule) can also be permitted to eligible customers
(other than salaried people).
Quantum of advance
(Rs. in lacs)
Min. Max.
a. For agriculturists 0.50 2.00
b. For Others :
Individuals/Prop. Firm/ 1.00 50.00
Partnership firm/
Company :
Prop./Partnership 1.00 100.00
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firm/company 1.00 100.00
34
of value of property or eligibility level, whichever is
lower.
Margin
Salaried Employees 30% *
Others 50% *
*On value of property [Lower of Market Value /Distress
Sale value/Registration Value as on date of valuation]
assessed by Bank's approved valuer
Rate of Interest
w.e.f. 01.04.2009
Upto Rs,50 lacs 0.25% OVER BPLR – 12.25% Above
Rs.50 lacs 0.50% over BPLR – 12.50% Interest
concession for woman beneficiaries 0.25% p.a.[All
borrowers to be women]
Repayment
In accounts where regular Overdraft facility is not
proposed. :-
Within a period of eight years by way of EMIs. The
repayment shall commence from the month
subsequent to the month in which final disbursement is
made or 6 months from the first disbursement,
Whichever is earlier. In case of agriculturists : The
repayment will be related to the generation of farm
income from crops and other subsidiary activities.
Security
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Equitable/Legal Mortgage charge over property in the
name of applicant or his/her spouse or parents or third
party. The person in whose name the property to be
mortgaged stands should either be a borrower/co-
borrower or a guarantor.
Note :
a. The property offered should be a residential or
commercial building or a plot of land
(residential/commercial).
b. The property should be self occupied or leased out to
acceptable individuals, government agencies, PSUs,
Corporates, etc.
c. Agricultural land is NOT accepted as security for this
facility .
Processing Fees
1. Accounts repayable as per Stipulated instalments :-
- One time @ 1% of Loan amount. Min.Rs.3000/- and
max. Rs30000/-.
2. Overdraft Limit ( not reducible as per repayment
schedule ) :
- 0.25% of the sanctioned limit, Min. Rs.3,000/- and
Max. Rs.10,000/- on annual basis.
- Documents charges, advocate fee, architect fee etc.
on actual basis.
Loan agreement copy charges : As applicable
For Partnership firms/Corporates –
Processing charges will be double that of applicable to
individuals
For Rural areas –Processing charges will be 50% that of
applicable to individuals in respect of loans availed by
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borrowers from rural areas from the Rural Branches.
Additional charges for deviations from the scheme
norms –One time 25% of the applicable processing
charges min. Rs.500/- max. Rs.3000/-
Eligibility
Salaried employees/ Professionals/Self-employed
/People engaged in business/Individuals with high net
worth/Agriculturists/Pensioners /Staff members.
Type of Advance
Demand Loan (reducible as per repayment schedule)
Quantum of advance
Max. Rs.2.00 lacs (clean)
Max. Rs.5.00 lacs (in case liquid collateral security is
offered like TDRs, NSCs,IVPs, KVPs, LIC Policy
(Surrender Value) etc. atleast equal to 50% of loan
amount sanctioned)
Rs. 10.00 lacs (In case liquid collateral security is
offered like TDRs, NSCs,IVPs, KVPs, LIC Policy
(Surrender Value) etc. atleast equal to 100% of loan
37
amount sanctioned)
Pensioners : Max. Rs.1.00 lac
Minimum size of loan :-
At Metro and Urban Centres : Rs.10,000/-
At Rural and Semi Urban centres: No minimum size of
loan.
Margin
No specific margin. Loan amount not to exceed
proposed expenditure/requirement.
Repayment
Maximum in 24 EMIs (Equated monthly instalments)
w.e.f one month after first disbursement from loan
account. In special/exceptional case, upto 36 EMIs.
Rate of Interest
1. Fully Secured Advances: (Where liquid collateral
security is offered like TDRs,NSCs,IVPs, KVPs, LIC
Policy (surrender value) etc. atleast equal to 100%
of loan amount sanctioned sanctioned 1% below
BPLR, at present 11.00% p.a. at monthly rests.
38
4. For senior citizens /pensioners (where pension
payment is through an a/c with the branch
disbursing the loan and EMI will be recovered out
of pension amount): For loan amount upto
Rs.50,000/- : @ 1.25% below BPLR, Min. 10.75%
p.a. at monthly rests..
Processing Charges
One time @ 1.10% of the loan amount. minimum Rs.
1000/-, Maximum Rs.5000/-. Pensioners : One time @
Rs. 1.10% of loan amount Min. Rs.500/- Maximum Rs
1100/-
No processing charges for Senior Citizens (60 years &
above)
Eligibility
Regular pensioners or family pensioners drawing regular monthly
pension through the branch. Retired employees (other than
dismissed/compulsorily retired)
Type of Advance
39
Demand Loan/Term Loan/Overdraft (reducible as per
repayment schedule)/Overdraft (3 months Pension Max.
Rs.15000/-)
Quantum of Advance
Regular Pensioner Family Pensioner
a.Unsecured/Clean:- 10 times of monthly
10 times of monthly Pension(Max. loan amount
pension (maximum loan Rs.50000/-)
amount Rs.1 LAC
b.Secured :- 20 times of monthly
20 times of pension (Max. loan amount
monthlypension
(maximum loan amount Rs.50000/-)
Rs.1 lac)
Repayment
For Clean/unsecured loan holder Max.36 EMIs w.e.f. one month
after first disbursement. 60 EMIs in exceptional cases. For Secured
Advance Max. 60 EMIs w.e.f. one month after 1st disbursement.
Rate of Interest
Fully Secured Advances: @ 0.50% below BPLR, Min.
11.50% p.a.
Clean/Unsecured Advances: @ BPLR, Min. 12.00% p.a.
For Senior Citizens (for loans upto Rs.50000/-) at 1.25%
below BPLR, presently 10.75 % p.a. (Aged 60 years
and above)
Processing/Handling Charges
40
a. No processing charge for Senior Citizens (60 years & above)
Target Group
Resident Indian Women Working Women : Women
permanently employed in Central/State Govt./PSUs/
Scheduled Banks/Teachers of Govt. Aided Institutions;
and include professionals like Doctors/ C.As/Chartered
Engineers etc.,Non Working Women : Not having
income proof. Spouse/other close relative who satisfy
income criteria to join as co-borrower .
Quantum of Advance
41
Working/Non-working women : 10 times of monthly net
emoluments (take home salary of self/spouse, in case
of non working women) Professional : 50% of Gross
Annual Income as per latest Income Tax Return
Minimum Rs. 50000/- Maximum Rs.2 lacs.
Margin
20% of the cost of Jewellery/Gold.
Interest Rate
1.75% below BPLR, presently 10.25% p.a., at monthly
rests.
Repayment
Maximum 60 EMIs .However, repayment period not to
exceed the age of 65 or retirement age of the
borrower, whichever is earlier. Repayment through
salary deduction /post dated cheques .
Security
For Loan over Rs.50,000/- liquid securities
[NSC/KVP/Insurance Policies-surrender value] for the
amount exceeding Rs.50,000/-.
Disbursement
By DD/ Pay Order favouring the seller ( with the name
of the Bank and Account Number). Stamped Receipt/
Invoice for the total cost of jewellery (i.e Loan Amount
plus Margin ) to be obtained. Proforma invoice required
for a loan amount of Rs. 1 lac and over.
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Processing Charge
For Loan upto Rs.50,000 - Rs.500/- . Over Rs.50,000-
1.10% of the loan amount Min. Rs.500. Stamp charges
for documents at actuals. Loan Agreement copy
charges. As applicable
2. General Guidelines:
All the members of the staff or any person authorized to represent our
Bank in collection or/and security repossession would follow the
guidelines set out below:
44
6. Borrower’s requests to avoid calls at a particular time or at a
particular place would be honored as far as possible.
7. The Bank will document the efforts made for the recovery of
dues and the copies of communication set to customers, if
any, will be kept on record.
4. Repossession of Security
Repossession of security is aimed at recovery of dues and not to
deprive the borrower of the property. The recovery process through
repossession of security will involve repossession, valuation of
security and realization of security through appropriate means. All
these would be carried out in a fair and transparent manner.
Repossession will be done only after issuing the notice as detailed
45
above. Due process of law will be followed while taking repossession
of the property. The Bank will take all reasonable care for ensuring
the safety and security of the property after taking custody, in the
ordinary course of the business.
46
Loan Processing Life Cycle
47
•The Origination Process
– Application Sourcing from Various Channels
– Application Screening
– Data Entry
• Proposal
– Submission of loan proposal substantiating the need
for the loan and substantiates the
ability to repay the loan
• Appraisal
– Appraisal check for credibility of the applicant,
whether source of repayment is good
enough to sanction the loan, defaulted in previous
occasion, risky customer etc
• Disbursement
– The disbursement can be made as a single payment
or in tranches.
•Recovery
– If the customer does not make payment on due dates,
follow-up needs to be madelegal
and non-legal.
49
– If principal/installments and interest are not received
for more than x months, the
loan is termed as non performing asset. As the asset
(loan) does not earn any money, it
is termed as ‘non performing’.
•Suit
– If the loan could not be recovered in the normal
process, a bank would file a suit in the court
of law to recover the money. It can be either a civil suit
or a criminal suit based on the circumstances
50
51
7.1 Aggregate Loan Vs GDP
52
7.2 GDP Growth Rate VS Loan
Growth Rate ( PLR in prespective)
53
CHAPTER 3- RESEARCH
OBJECTIVES AND SCOPE OF
RESEARCH
3.1 PROBLEM DEFINATION:
Present credit crisis is creating many changes in banks
lending policies and also effecting the banks
performance. Its very difficult to understand these
volatile conditions. That is why it creating
dissatisfaction among borrowers and loan holders.
Sometimes it very difficult to make understand to client
and also difficult to banks to manage these changes.
3.2 OBJECTIVES OF RESEARCH PROJECT:
3.2.1 PRIMARY OBJECTIVES:
• To study the loan reimbursement policies of
bank.
• To study the effect of credit crisis on bank lending
policies.
• To determine the changes which taken place due
to credit crisis.
.
3.2.2 SECONDARY OBJECTIVES:
• To determine the purpose of loans.
• To understand the eligibility criteria for borrowers
which are set by the bank.
• To offer suggestions based upon the findings.
54
3.3 SCOPE of research:
The same problem was with the all other branches of
Bank O India even out of the Sindri city. The
management is conducting the same research on a big
ground while my contribution is tiny.
Though my sample size and geographical area was
defined and confine to a particular territory
but the application of out put from the research are
going to be wide.
.
CHAPTER4- RESEARCH
METHODOLOGY AND
LIMITATIONS
55
4.1.2. Exploratory Study: To determine the approximate
area where the problem lies.
4.2 RESEARCH DESIGN:
Research was initiated by examining the secondary
data to gain insight into the problem.
By analyzing the secondary data, the study aim is to
explore the short comings of the present system and
primary data will help to validate the analysis of
secondary data besides on unrevealing the areas which
calls for improvement.
4.2.1 DEVELOPING THE RESEARCH PLAN:
The data for this research project has been collected
through self Administration. Due to time limitation and
other constraints direct personal interview method is
used. A structured questionnaire was framed as it is
less time consuming, generates specific and to the
point information, easier to tabulate and interpret.
Moreover respondents prefer to give direct answers. In
questionnaires open ended and closed ended, both the
types of questions has been used.
56
the basis of organizational file, official records, news
papers, magazines, management books,
preserved information in the company’s database and
website of the company.
2: Primary data: All the people who have taken loan
from Bank Of India from were personally visited and
interviewed. They were the main source of Primary
data. The method of collection of primary data was
direct personal interview through a structured
questionnaire.
4.3 SAMPLING PLAN:
Since it is not possible to study whole universe, it
becomes necessary to take sample from the universe
to know about its characteristics.
Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method:Personal Interview.
4.4 SAMPLE SIZE:
My sample size for this project was 100 respondents.
Since it was not possible to cover the whole universe in
the available time period, it was necessary for me to
take a sample size of 100 respondents.
4.5 DATA COLLECTION INSTRUMENT
DEVELOPMENT:
57
The mode of collection of data will be based on Survey
Method and Field Activity. Primary data collection will
base on personal interview. I have prepared the
questionnaire according to the necessity of the data to
be collected.
4.6 RESEARCH LIMITATIONS:
It was not possible to understand thoroughly about
the different loan policies of bank within 60 days.
As stipend, money was not given it was difficult to
continue the project work.
The area of research was Dhanbad and it was too
vast an area to cover within 60 day
58
Insights of an Analyst
I interviewed Mr. Ashis Kumar, Assist Manager of State
Bank Of India (Sindri Branch). Here I present some
excerpts from the interview –
60
a strong financial position, then the amount of
collateral varies from 50% to 70%. In some cases the
amount even exceeds 200% of the loan amount.
Q. Does the bank interfere in how the client
utilizes the loan amount?
Ans- the bank usually does not interfere directly but
the borrower requires to present bills and other
documents of purchase etc. when drawing the amount.
This is a just a precautionary measure so that we are
able to make sure that the loan amount is not used for
uncalled for reasons. As the borrower provides us a
specific reason to get a loan we must make sure that
the money serves that very same purpose.
Q. What role does RBI play in loans?
Ans – the RBI sets norms and other conditions
regarding the amount of loans and determines the risk
averseness of the banks. Also the RBI influences the
interest rates hence plays a definitive role in the bank’s
policy.
Q. Are the terms and conditions negotiable?
Ans – Yes the terms and condition are negotiable. Time
period of the loan, interest rate, and the moratorium
period are the most negotiated topics.
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Q.How the present credit crises affected
the bank lending policy? Also have you seen
any major difference in the creditor’s
attitude in wake of the current crises?
Ans – most of the banks shave stopped lending due to
the present liquidity crunch and many companies
shutting their shops, now our bank has become very
cautious and has reduced lending to clients. Only top
notch clients are given loans. Existing customers who
are showing signs of slowdown are being forced to
repay to the amount at the earliest possible.
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Statistical Analysis
In this segment I will show my findings in the form of
graphs and charts.All the data which I got form the
market will not be disclosed over here but
extract of that in the form of information will definitely
be here.
Detail:
Size of Data :100
Area : Dhanbad
Type of Data : 1. Primary 2. Secondary
Industry : Banking
Respondent : Loan holders of Bank Of India
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Table1: perception about different products and
services offered by Bank Of India?
PARAMETER
RESPONSES
LUCRATIVE 39%
NOT LUCRATIVE 23%
NO IDEA 38%
Interpretation
65
Table3: How long Bank Of India taken to provide you
loan?
Interpretation
66
Table4: Are you aware about the terms and conditions
of Bank Of India against your loan?
Sr No. Category No. of Percentage
Respondents
1. Yes 89 89%
2. No 11 11%
Total 100
Interpretation
Interpretation
67
• 38% respondents are very satisfied with terms and
conditions of Bank Of India against their loan.
• 47% respondents are satisfied with terms and
conditions of Bank Of India against their loan.
• 9 % respondents are dissatisfied with terms and
conditions of Bank Of India against their loan.
• 6 % respondents are very dissatisfied with terms and
conditions of Bank Of India against their loan.
68
CHAPTER5- CONCLUSION
6.1 CONCLUSIONS:
69
ANNEXURES
1. QUESTIONNAIRE
QUESTIONNAIRE Dear
Sir/Madam,
Name:
Address:
Contact No:
City:
1. Your Age:....................................................
2. Educational Qualification:.............................
3. Occupation:
• Business
• Profession
• service
70
• Yes □
• No
□
• Yes □
• No
□
• Home loan □
• Personal loan □
• Other (please
specify)....................................
10: Are you aware about the terms and conditions of Bank Of
India aganist your loan?
• Yes □
• No
□
Very satisfied □
Satisfied □
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Dissatisfied □
Very Dissatisfied □
.....................................................................................................
.....................................................................................................
....................................................
Date:
Place:
Signature
Thank You
BIBLIOGRAPHY
1.BOOKS AUTHORS
• • Research Methodology (2nd Edition)
• Research Methodology Kothari C R
2. NEWS PAPERS
• Times of India
• Financial Express
3. WEBSITES
• www.bank of india.com
• www.scribd.com
• www.moneycontrol.com
• www.banknetindia.com
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