Professional Documents
Culture Documents
on
Loans &
Advances
By
Dheeraj
Utilityofloansandadvances
Types of Loans
Demand loan
Term loan
Medium and long term loans are called term loans. Term loans are
granted for more than a year and payment of such loans is spread over a
longer period. Term loan is required for the purpose of starting a new
business activity renovation, modernization, expansion of existing units,
purchase of their land for setting up a factory, construction, of factory
building or purchase of other immovable assets. These loans are generally
secured against the mortgage of land, plant and machinery, building and the
like.
Secure
d are those which are
Secured loans
granted against the security of tangible
assets, like stock in trade and
immovable property. Thus, while
granting loan against the security of
some assets, a charge is created over
the assets of the borrower in favor of
the bank. This enables the bank to
recover the dues from the customer out
of the sale proceeds of the assets in
case the borrower fails to repay the
loan.
Forms of Advances
The advances can be classified two
categories
Loans, cash credits and overdrafts.
Bills discounted and purchased.
Cash credits
This account is the primary method in which
banks lend money against the security of
commodities and debt. It runs like a current
account except that the money that can be
withdrawn from this account is not restricted
to the amount deposited in the account.
Overdrafts
The word overdraft means the act of
overdrawing from a bank account. In other
words, the account holder withdraws more
money from a bank account than has been
deposited in it..
DATA
ANALYSIS
&
INTERPRETATI
ON
No. of response
Percentage %
Yes
65
65
No
35
35
Total
100
100
Response
Yes
No
No. of response
Percentage %
House loan
15
15
Educational loan
35
35
Personal loan
21
21
Vehicle loan
29
29
Total
100
100
No. of respondent
40
30
20
10
0
No. of
respondent
No. of response
Percentage %
15
15
1 to 3 Year
35
35
3 to 5 Year
More than 5 Year
Total
21
21
29
29
100
100
No. of Response
Less than 1 Year
1 to 3 year
3 to 5 Year
More than 5 year
CANARA Bank
No. of respondents
37
Other Nationalized
24
Banks
39
50
40
Canara
Other Pvt. Bank
Nationalised
bank
30
20
10
0
No. of respondent
Businessman
No. of
35
Serviceman
Self-employed
Others
38
people
11
16
respondents
40
35
30
25
20
15
10
5
0
Businessman
Serviceman
Self-employed
people
Others
Occupation
No. of response
Percentage %
MONTHLY
25
25
QUARTERLY
40
40
ANNUALLY
Total
35
35
100
100
No. of Response
40
30
No. of
Response
20
10
0
No. of response
Percentage %
Public Sector
65
65
Private Sector
25
25
Co-operative Sector
10
10
100
100
TOTAL
No. of Respondent
70
60
50
40
30
20
10
0
No. of
Respondent
Limitations
Due to inflexibility in account opening it is difficult
to convince customers.
No authentic evidence of customers is found.
No special facilities of loans to businessman are
given in semi rural or rural area.
The bank is not tapping untapped areas.
Lack of communication & delivery channels.
Lack of social banking.
Loans are not provided without security.
Loans are not provided at ease lot of paper work &
documentation is involved.
The time bound period is the major limitation in
research projects.
Recommendations
More customer convenience
Services for businessmen
Service for Self employed &
Servicemans
Rural Banking
Social Banking
Conclusion
The cutthroat competition of 21 st century