the best in banking field Project report on bank loansOF STUDY The present study was carried out

with the objective to know Scope of retail loans of Bank of Punjab Ltd. So as to know strength and weakness of loan schemes of Bank of Punjab Ltd. so that strengths can be increased and weaknesses can be made .
RESEARCH METHODOLOGY Research Methodology in a way is systematic representation of research or any other problem. It is a written game plan for conducting research. It tends to describe the step taken by a researcher in studying the research problem along with a logical background. It tends to describe methodology for solution of the problem that has been taken for the purpose of study this project focuses on the methodology for technique used for the collection, classification & tabulation of the data. This plan throws light on the research problem, the objective of study & limitation of the study. Therefore, in order to solve a problem, it is necessary to design a research methodology for problem as the same way differs from problem to problem. The Projects The project undertaken during the summer training at Bank of Punjab Ltd. was Comprehensive study of Retail loans. The main aim of the study is to understand the Retail Loans provided by Bank of Punjab Ltd. It is the bank which understand the need of its customers & provides them best facility. Nature of study The nature of the study is that it has an applied base. The statement indicated that result obtained from the study, inference drawn from the study can actually be applied practically & can be of great help to the customer to know about Retail loans in more comprehensive way. Scope of Study The study is restricted to Panipat itself. It aims at getting an insight in to Retail loan. It also aims at familiarized with the customer during the

market survey help me a lot in understanding the practical aspect of the loan as a whole . Objectives of Project Report The main objective of the project report is to understand the Retail loans provided by bank of Punjab . the objective was successfully achieved by performing the detailed survey of 5 other banks. The questionnaire for survey study was prepared keeping in mind the following :To give level of information to the customer. To give satisfaction regarding services offered by bank To make out which bank provide services with best resources To know the awareness among the common man about loan which they want to take. Type of Research Research methodology is a way to systematic solve the research problem. It is a procedure, which is followed step by step to solve a particular research problem. There are basically four types of researches EXPLORATIVE RESEARCH DESCRIPTIVE RESEARCH DIAGNOSTIC RESEARCH HYPOTHESIS TESTING RESEARCH Explorative Research To gain familiarity with the phenomenon or to achieve an insight into it. Descriptive Research To poetry accurately the characteristic of the particular individual situation or a group. Diagnostic Research

To determine the frequency with which something occurs or with which it is associate with something else. Hypothesis Testing Research. To test a hypothesis of casual relationship between variables. The present project is Descriptive in nature. It is done to poetry accurately the characteristic of a particular individual situation or a group. The major purpose is descriptive research is the description of the state of the affairs as it exits at presents. The main characteristics of this method are that the researcher has no control over the variables; he can only report what has happened or what is happening. Research Process There are Six steps of Designing A Research Report. 1 Specifying the Research objective As my research project is about the comprehensive study of retail loan & role of Bank of Punjab Ltd. providing them so first of all the various objectives of the project were specified. 2. Preference the list of needed information the second step in designing the project work is the preparation of list of need information. There is basic information on which the research project is to structure. In this project the various are handed in starting of the project. These are as follows:Q. What is the study about.? ANS: Comparative study of Retail loan. Q. Why is the study being made? ANS: to understand retail loan provided by bank of Punjab Ltd. Q, Where will the study be carried out.? ANS: Panipat only. Q. What type of data is required ?

ANS : Primary as well as Secondary. Q. Where can the required data be found? ANS : Primary data trough questionnaire from the bank & secondary data through magazines, newspaper. Etc. 3. Designing the data collection process During the data collection process a questionnaire was made for the collection of the data from the consumers personally. Because in the research project both primary as well as secondary data is required . so primary data was collected with the help of the questionnaire. The following type of question were asked from the consumers. Dichotomous A. question with two possible answers says yes or no. Multiples choice A question with three or more answer 4. Selection the sample size Taking the sample of the study was not easy task. The objective and the lamination of the study have to be kept in mind before decided about the sample type. In the sample type all level of its consumers have been covered. Basically the present customers as well as prospective customers were questioned with help of the questionnaires. 5. Organizing and Carrying out the field work. After decided upon the sample size & preparing the questionnaire, the fieldwork has to be carried out. In the field work the place had to be chosen where you want to do your study. This project survey work was carried out in the Panipat city. 6. Analyzing the collected data & reporting the finding After the survey work was over & data had been collected the analyzing of the data must & its graphically representation was needed. So after

the data collection process step by step analysis of data was done. On the basis of the analysis. Next Chapter - Analysis of Loan Schemes of Banks

Bank Loans : Leading of fund to the constituents, mainly traders, business and industrial enterprises, constitutes the main business of the banking industry. The major portion of a Bank fund is employed by way of loans, which is the most profitable employment of its fund. The major part of bank is earned from interest. The business of leading, nevertheless is not without certain inherit risks largely depending on the borrowed funds, a banker therefore, follow a very caution policy, and conduct his business on the basis on the basis of safety, liquidity, profitability etc. MEANING OF LOANS Under the lonas, credit is given for a definite purpose and for a predetermined period. Normally these loans are repayable in installments. Funds are required for single non-repetitive transactions and are withdrawn only once. If the borrower need funds again or wants renewal of an existing loan, a fresh request is made to the bank. This borrower is required to negotiate every time; he is taking a new loan or renewing an existing loan. Banker is at liberty to grant or refuse such a request depending upon his owner cash resources and credit policy of the control bank. PROJECT REPORT ON TYPES OF LOANS Bank grants loan for different periods short, medium and long and for different purposes. Short Term Loans Short-term loan is granted to meet the working capical needs of the borrowers. These loans are granted against securities of tangible assets mainly the movable assets like goods and commodities, shares, debentures etc. Since April 1995, RBI has made it mandatory for the banks to grant a portion of bank credit to big customers in the form of loans, which may be for various maturities. The RBI has also permitted the banks to roll over such loans i.e. to extend the loan for another period at the expiry of the tenure of the first loan.

Term Loan Medium and long-term loans are usually called Term loans. These loans are granted for more than one year and also meant for the purpose of capital asset for establishment of new expansion or diversification of an existing unit. Banks usually grant such loans together with specialized financial institutions like industrial Finance Corporation of India, credit and investment corporation etc. In April 1995, RBI banned bridge loan granted by banks and financial institutions to all companies. But in oct. 1995, RBI permitted banks to sanction bridge loans /Interim finance by banks subject to some conditions in no. 1997, RBI permitted to banks to grants bridge loans to companies (other than non-banking finance companies) against public issue of equity of India or in abroad. Composite Loans When a loan is granted both for buying capital assets and for working capital purpose it is called composite loans. Such loans are ususllly granted to small borrowers such as artisans, farmers, small industries etc. Retail loans These are loans that are given to individuals for their purpose, Retail loans can be subdivided into 4 categories. Housing Loans This is the loans scheme that is offered to individual for constructions of house, purchase of house, plot purchase, repair, renovation, purchase of flat from private builder, for furnishing etc. This is one of the retail product thus involve colossal volumes in terms of customers and dunds. Education Loans Education loan is given to the students for further studies in India and abroad both. This loan can be for air fare travel expenses admission/tuition fees, boarding and lodging expenses books & stationary expenses etc. Auto Loans

Auto loan is given to individual to buy old/new car and two wheeler. It is very popular loan among borrowers as today everyone want vehicle in their home and bank provide them at easy installments. Personal Loans Though normally banks provide loans for productive purpose only, but as a exception loans are granted on a limited scale to meet the medical needs or the educational expenses or expenses relating to marriage or other social purpose of the needs persons. Such 1Soans are called Personal loans. ADVANTAGE OF LOANS Financial discipline of the borrower As the time of repayment of loans or its installments is fixed. In advance, these systems ensure a greater degree of self discipline of borrower as compared to cash credit system. Periodic review of loans A/C Whenever a loan is granted or its renewal is sanctioned, the banker gets an opportunity of automatically reviewing the loan account. Unsatisfactory loan account may be discontinued at the discretion of the banker. Profitability System is comparatively simple, interest occurs to the bank on the entire amount lent to a customer. DRAWBACK OF LOANS Every time loan is required. It is to be negotiable with the banker. To avoid it, borrower may borrow in excess of their exact requirement to provide for any contingency. Bank have no control over the use of fund borrowed by the customers, however banks insist on hypothecation of the asset/vehicle purchase with loan amount. Though the loans are for fixed period but in practice they roll over i.e. they are renewed frequently. Loan documentation is more comprehensive as compared to cash credit system. RETAIL LOANS

Loan become necessary for every money minded person .From this way they can invest their money in other profitable purposes . The best coming way to get loan for building home for buying automobiles or education of your for personnel purposes is provided by Bank Of Punjab ltd. at preferential rate of interest . If you are eligible for loan then u will have money in hand in very few days. The bank will provide you the facility of re payment in easy installments the loan are made available at your doorstep. INTRODUCTION TO HOME LOANS The bank will take over the loan from that institution. Composite scheme: You can apply for combination from any of the above .Building your own home is one of the most important decision you will make and it can consider and life style and financial circumstance. Bank of Punjab stand by you as you take your first step ownership. The bank offers an array of low cost customized home loan schemes for your convenience. Easy loan for construction Easy loans for purchase of land an construction Easy loans for purchase of land & construction Easy loan for repair/renovation and up gradations. Easy loans for purchase of plot. Financial Benefits of Home Loans Tax Benefits : Acquiring a home through Finance schemes provides tax Benefits on the principal repayment. Creation of Wealth : A home is an appreciable investment in. Security : in case of need your home provides security against which you can raise funds unforeseen financial needs. Purpose of Loan Construction of House/flat : It would mean construction of a complete dwelling unit at least one bedroom, kitchen, and bathroom as per map approved by authority. Purchase of House flat : Purchase would mean purchase of complete dwelling unit required for a family.

Extension of an existing of House / Flat: It would mean construction of additional dwelling unit. Land purchase cum construction: Combined for loan for purchase of plot and the construction given in the ratio of 50% of loan amount or 85% of the cost of property being purchase which ever is lower. The construction of house will necessarily be commenced within 6 months as applicable. Repair/Rennovation: BOP Provides a maximum of Rs. 3 lakhs. For a term of 5 to 10 years in this case interest rate will be 1% higher than the normal scheme the bank sanction 75% of the estimate. Purchase of Plot: BOP provides 85% of the cost of plot. Interest will be 1% higher than normal interest rate. The bank finance maximum of 25 lakhs for a term of 2 years. Takeover/balance Transfer: if the person has taken loan form any other institution and he is not satisfied with the facilities provided by that institution then he can transfer his balance. Elighbility for Home loans: Residential Indian Any Indian citizen having sufficient repayment capacity to the loan applied can apply for loan. The age of applicant should not be less than 21 years ar the itme of applying of loan The age of applicant should not exceed 65 years during the loan tenure. Non-Residential Indian Any Indian citizen who is a non-residential and holding valid Indian passport can apply for home loan under the NRI scheme. NRI may be required to provide a guarantor residing in India. The age of applicant should be more than 25 years. The individual should be of salaried class.

Security required for the loan : The person who is applying for loan need to provide security of the financed property and/or such additional/collateral security may be mutually agreed. Documents required: the indicative list is given below. In case of Residential Indian : Income documents Details of other income Photocopy of documents of title Documents pertaining to savings and assets Details of other loan taken Residential Proof Signed passport size photographs of all the applications Cheque of processing fees-0.2% loan amount applied for Any other document as required by bank of Punjab Ltd. Bank statement for last 6 months. In case of Non-Residential Indian Signed passport size photographs of all the applications Copy of Passport and Visa(S) Copy of work permit (if applicable) Copy of CDC in case of customer working in merchant navy Bank statements for last six months- both domestic and international General power of attorney as per banks draft duly attested by the Indian consulate in case of not in India. If the NRI is in India then the POA can be locally notarized.

 Copy of appointment letter and contract (Translated to English and attested) Copy of labour/identity card (Translated to English and attested ) Salary Certificate (in English) specifying name, Date of joining, Designation and Salary. Photocopies of title deeds. Processing Fees : Processing fee will be 0.20% of the loan amount payable with the application and 0.20% administration sanction, before disbursement of loan. Repayment: The loan will be repayable through equated monthly installments(EMI). Post-dated cheques are to be permitted by RBI or NRE/NRO (For NRI). The EMI is to be paid every month through post-dated cheques (PDC). In case of part disbursement of the loan, monthly interest is payable at disbursed amount. This interest is called pre EMI interest (pre EMI) and is payable monthly till disbursement is made or till commencement of EMI. REPORT ON SCOPE OF RETAIL LOANS OF BANK OF PUNJAB LTD. OBJECTIVES OF STUDY The present study was carried out with the objective to know Scope of retail loans of Bank of Punjab Ltd. So as to know strength and weakness of loan schemes of Bank of Punjab Ltd. so that strengths can be increased and weaknesses can be made the best in banking field. RESEARCH METHODOLOGY Research Methodology in a way is systematic representation of research or any other problem. It is a written game plan for conducting research. It tends to describe the step taken by a researcher in studying the research problem along with a logical background. It tends to describe methodology for solution of the problem that has been taken for the purpose of study this project focuses on the methodology for technique used for the collection, classification &

tabulation of the data. This plan throws light on the research problem, the objective of study & limitation of the study. Therefore, in order to solve a problem, it is necessary to design a research methodology for problem as the same way differs from problem to problem. The Projects The project undertaken during the summer training at Bank of Punjab Ltd. was Comprehensive study of Retail loans. The main aim of the study is to understand the Retail Loans provided by Bank of Punjab Ltd. It is the bank which understand the need of its customers & provides them best facility. Nature of study The nature of the study is that it has an applied base. The statement indicated that result obtained from the study, inference drawn from the study can actually be applied practically & can be of great help to the customer to know about Retail loans in more comprehensive way. Scope of Study The study is restricted to Panipat itself. It aims at getting an insight in to Retail loan. It also aims at familiarized with the customer during the market survey help me a lot in understanding the practical aspect of the loan as a whole . Objectives of Project Report The main objective of the project report is to understand the Retail loans provided by bank of Punjab . the objective was successfully achieved by performing the detailed survey of 5 other banks. The questionnaire for survey study was prepared keeping in mind the following :To give level of information to the customer. To give satisfaction regarding services offered by bank To make out which bank provide services with best resources

To know the awareness among the common man about loan which they want to take. Type of Research Research methodology is a way to systematic solve the research problem. It is a procedure, which is followed step by step to solve a particular research problem. There are basically four types of researches EXPLORATIVE RESEARCH DESCRIPTIVE RESEARCH DIAGNOSTIC RESEARCH HYPOTHESIS TESTING RESEARCH Explorative Research To gain familiarity with the phenomenon or to achieve an insight into it. Descriptive Research To poetry accurately the characteristic of the particular individual situation or a group. Diagnostic Research To determine the frequency with which something occurs or with which it is associate with something else. Hypothesis Testing Research. To test a hypothesis of casual relationship between variables. The present project is Descriptive in nature. It is done to poetry accurately the characteristic of a particular individual situation or a group. The major purpose is descriptive research is the description of the state of the affairs as it exits at presents. The main characteristics of this method are that the researcher has no control over the variables; he can only report what has happened or what is happening.

Research Process There are Six steps of Designing A Research Report. 1 Specifying the Research objective As my research project is about the comprehensive study of retail loan & role of Bank of Punjab Ltd. providing them so first of all the various objectives of the project were specified. 2. Preference the list of needed information the second step in designing the project work is the preparation of list of need information. There is basic information on which the research project is to structure. In this project the various are handed in starting of the project. These are as follows:Q. What is the study about.? ANS: Comparative study of Retail loan. Q. Why is the study being made? ANS: to understand retail loan provided by bank of Punjab Ltd. Q, Where will the study be carried out.? ANS: Panipat only. Q. What type of data is required ? ANS : Primary as well as Secondary. Q. Where can the required data be found? ANS : Primary data trough questionnaire from the bank & secondary data through magazines, newspaper. Etc. 3. Designing the data collection process During the data collection process a questionnaire was made for the collection of the data from the consumers personally. Because in the research project both primary as well as secondary data is

required . so primary data was collected with the help of the questionnaire. The following type of question were asked from the consumers. Dichotomous A. question with two possible answers says yes or no. Multiples choice A question with three or more answer 4. Selection the sample size Taking the sample of the study was not easy task. The objective and the lamination of the study have to be kept in mind before decided about the sample type. In the sample type all level of its consumers have been covered. Basically the present customers as well as prospective customers were questioned with help of the questionnaires. 5. Organizing and Carrying out the field work. After decided upon the sample size & preparing the questionnaire, the fieldwork has to be carried out. In the field work the place had to be chosen where you want to do your study. This project survey work was carried out in the Panipat city. 6. Analyzing the collected data & reporting the finding After the survey work was over & data had been collected the analyzing of the data must & its graphically representation was needed. So after the data collection process step by step analysis of data was done. On the basis of the analysis. Next Chapter - Analysis of Loan Schemes of Banks

IGNOU MBA Project, Final Project Report, Management Projects, Sample Report, MBA Projects, BBA Project Report, BMS Project, Synopsis, Project Report MBA/BBA/PGDBA/PGDBM etc, Dissertations, HR Projects, Marketing Projects, Finance Projects, Operation Projects, Final MBA Projects, Summer Project - All you find under One Website Home | Services | Careers | Contact Us | Sitemap | Query Detail |RSS Feed | Google Friend Connect | ANALYSIS OF BANK LOAN SCHEMES HOME LOANS PROCESSING FEES 1500/- 1500/- NIL 0.40% 0.60% Nil PRE-PAYMENT File Charge Fees on Loan Amount PENALTY Penalty BOP Nil PNB 2% OBC 2% UCO Nil HDFC 3% ICICI 2% PNB OBC UCO HDFC ICICI NIL Nil 1500/0.50% 1500/0.50%

BOP

RATE OF INTEREST ON PERSONAL LOANS IN PANIPAT BY DIFFERENT BANKS Rate of Interest BOP 17% PNB 11% OBC 11% UCO 11% HDFC 15% ICICI 16%

MAX. AMOUNT OF PERSONAL LOAN GIVEN Loan Amount BOP 3 Lakhs PNB 3 Lakhs OBC 1.5 Lakhs UCO 2.5 Lakhs HDFC 10.00 Lakhs ICICI 10 Lakhs

MAX. TENURE PERIOD FOR WHICH PERSONAL LOAN IS PROVIDED BY BANKS Tenure BOP 60 PNB 60 OBC 60 UCO 48 HDFC 48 ICICI 60

ANALYSIS & INTERPRETATION The retail loan study bring the three type of loans. Which is of great help to customers. The home loan education loan & personal loan are various loan which makes life of easier of customers and make customer to afford that thing which he dream to have in future but can buy now when he wants. Home Loan Personal Loan Education Loan The analysis of the questionnaire that was circulated to as certain the views & awareness is as follows :-1. The BOP has lowest rate of interest in Home Loan. 2. There is no pre-payment penalty in case of Home Loan. 3. Lowest processing fees in case of Home Loan 4. The processing fees charges in case of education loan 5. Far behind from competitor in case of personal loan The amount provided is lesser than other banks. LIMITATIONS OF STUDY It is very small research/project report, which may be insufficient to give the real picture scope of the retail loan in Panipat and its catchments area. The research is based on collected data and the researcher is not responsible for any wrong inference drawn due to the incorrect filling of the questionnaire by the respondents.

The method of result is also limited to the reliability of method of investigations, measurement and analysis of data. Auto loan are not included in the study of retail loans. Education loan are not providing by other banks like ICICI, HDFC, & IDBI. So, it cannot compared with other banks. People were not interested in filling questionnaire properly. Loan scheme has been revised very soon. Education loan is provided for some special customers. It is not possible for every customer to get Education Loans SUGGESTIONS Interest rate, processing fees, tenure, margin money-all these are important in loans-housing loan, auto loans, personal loan, education loans etc. So bank should revise all above keeping in view all other banks. Bank should appoint some marketing executive for this purpose who can give information of market and other banks, revision of loan timely so that our bank can revise it very soon. These marketing executive should give report to Head Office directly for timely processing so that as early as possible, market can be fully captured. Loan limit of all loans should be increasing keeping in other view

private sector banks and nationalized banks.

One of the major weakness of bank of Punjab is processing timely. As today every person is very busy. He cannot more days for taking loan so. Processing time should be reduced. But this processing time can be reduced only when the sanction authority is necessary for branch offices. As in nationalized banks, there is not negative file, but in bank of Punjab but there is a list of negative profile. This is the main reason of the nationalized banks having more customers. So. Negative file should be reduced or eliminated. Other private sector banks like ICICI, HDFC etc. have lower interest rate than BOP. So the bank should reduce it interest rate for being in the competition with these banks.

Bank of Punjab is lower loan amount than other banks, so it should increase its loans amount for attracting customer towards it products loans . The bank should give authority to all its branches for providing loans. CONCLUSION Bank of Punjab such a great reputation that it can very well go out and sell it product to the out sides customers and be a winner. These are the responses from the people who knew about Bank of Punjab but those of them who did not know it felt very happy when the came to know that group. Bank of Punjab has come out with a new life insurance venture. The only points now is, that when the company enjoys such a great reputations. What it has got to do (to private its product to the people at very competitive price and make them sure that their investment in the company is absolutely secure. Our project was based to retail loans and

product range of retail

loans of BOP
The retail loan provided by BOP include Home Loan Personal Loan Education Loan The home loans provided by BOP is less than other banks and having lowest processing fees. It comparison to other bank it has lower interest rate than same bank. The personal loan is having maximum tenure period and lower interest rate. It contain less amount of personal loans by the banks. Education loans is provided by only a few banks and services provided by bank for education loans is not so goods. BIBLIOGRAPHY

www.bankofpunjab.com
Research methodology (C.R. Kothari)

Business Magazines Brochures, pamphlets and Circulars of Banks Presentation by Trainers

Scope of Retail Loan of BOP - Ch.-I Loan Types of BOP - Ch.-II Project Report Index