Professional Documents
Culture Documents
FINAL PROJECTcustomer Attitude Towards Icici Bank Loan Schemes INDER
FINAL PROJECTcustomer Attitude Towards Icici Bank Loan Schemes INDER
FINAL PROJECTcustomer Attitude Towards Icici Bank Loan Schemes INDER
ATTITUDE
Various statistical tools have been applied in order to analyze the collected data.
Percentage method was primarily used for analysis. Percentage have been found for all
the parameters and based on these percentages bar graphs and pie charts have been
formed. Various tools were used and also XLSTAT software has been used.
The research report gives maximum analysis and strategic suggestions to the various
companies which manufacture 1.5 ton window air conditioners. This research report
suggests that emphasis should be given on the fixation of price which is an important
factor considered by consumers while making purchase
ACKNOWLEDGEMENT
In this present world of competition there is a race of existence in which those who are
having will to come forward will succeed. Project is a bridge between practical and
theoretical working, with this will I have joined the project. I really wish to express my
gratitude towards all those people who have helped me.
I am really indebted to Dr. Vikas Daryal (Director, TIMT) & MS Shruti kapoor
(HOD, MBA ,TIMT)Yamunanagar, for his kind hearted approach.
I am also very thankful to Ms. Surbhi Makkar Faculty. (MBA) for his timely guidance,
supervision & encouragement that have helped me to get this golden opportunity and
who provided me his expert advice, inspiration & moral support in spite of his busy
schedule & assignments, has mainly provided my understanding of this project.
Last , but not the least, I say only this much that all are not to be mentioned but none is
forgotten and I will like to extend my special thanks and gratitude to my parents who
always encourage me in pursuit of excellence.
(Inderjit Singh)
TABLE OF CONTENTS
Page No
1) Introduction
I. Profile of the study
II. Justification of the study
2) Objectives of the Study
3) Literature Review
4) Research Methodology and Analytical tools
I. Sampling and Sampling Design
II. Analytical Tools
-Statistical tools
III. Data Collection
IV. Hypothesis Testing
V. Limitations of the Study
5) Results and Discussions/ Findings
6) Bibliography
7) Annexure
INTRODUCTION
BANKING SECTOR18
- The Reserve Bank of India (RBI), as the central bank of the country, closely monitors
developments in the whole financial sector.
- The banking sector is dominated by Scheduled Commercial Banks (SCBs). As at endMarch 2002, there were 296 Commercial banks operating in India. This included 27
Public Sector Banks (PSBs), 31 Private, 42 Foreign and 196 Regional Rural Banks. Also,
there were 67 scheduled co-operative banks consisting of 51 scheduled urban cooperative banks and 16 scheduled state co-operative banks.
- Scheduled commercial banks touched, on the deposit front, a growth of 14% as against
18% registered in the previous year. And on advances, the growth was 14.5%against 17.3
% of the earlier year.
- State Bank of India is still the largest bank in India with the market share of 20%. Icici
and its two subsidiaries merged with Icici Bank, leading creating the second largest bank
in India with a balance sheet size of Rs1040bn.
- Higher provisioning norms, tighter asset classification norms, dispensing with the
concept of past due for recognition of NPAs, lowering of ceiling on exposure to a single
borrower and group exposure etc., are among the important measures in order to improve
the banking Sector.
- A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to strengthen the
ability of banks to absorb losses and the ratio has subsequently been raised from 8% to
9%. It is proposed to hike the CAR to 12% by 2004 based on the Basle Committee
recommendations.
- Retail Banking is the new mantra in the banking sector. The home loans alone account
for nearly two-third of the total retail portfolio of the bank. According to one estimate, the
retail segment is expected to grow at 30-40% in the coming years.
- Net banking, phone banking, mobile banking, ATMs and bill payments are the new buzz
words that banks are using to lure customers.
- With a view to provide an institutional mechanism for sharing of information on
borrowers/ potential borrowers by banks and Financial Institutions, the Credit
Information Bureau (India) Ltd. (Cibil) was set up in August 2000. The Bureau provides
Need to understand:
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A
firm needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms
success.
The marketing concept stresses that a firm should create a Marketing Mix (MM)
that satisfies (gives utility to) customers, therefore need to analyze the what,
where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
The study of consumers helps firms and organizations improve their marketing strategies
by understanding issues such as how
The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer; and
How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
Providing different products (e.g., some consumers like cola taste, while others
prefer lime)
Offering different prices (some consumers will take the cheapest product
available, while others will pay for desired features)
Distributing the products where they are likely to be bought by the targeted
segment.
COMPANY PROFILE20
HDFC BANK IN INDIA
HDFC Bank was amongst the first to receive an 'in-principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector from Housing Development
Finance Corporation Limited (HDFC), in 1994 during the period of liberalization of the
banking sector in India. HDFC India was incorporated in August 1994 in the name of
'HDFC Bank Limited'. HDFC India commenced operations as a Scheduled Commercial
Bank in January 1995.
HDFC India deals in varieties of products like home loan, standard life insurance, mutual
fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like
Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmedabad apart from HDFC Mumbai.
Network : More than 468 branches over 212 cities across the country
ATMs : The ATMs of HDFC India can be accessed by all domestic and international
Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.
Authorised capital : Rs. 450 crore
Paid-up capital : Rs. 282 crore
Equity : Holds 24.2%
Listing : HDFC India has been listed on the Stock Exchange, Mumbai and the National
Stock Exchange. The bank's American Depository Shares are listed on the New York
Stock Exchange (NYSE) under the symbol "HDB".
Savings Account
Sweep-In Account
Demat Account
HDFC ATM
ICICI Bank21
ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches
and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in
1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned
subsidiary.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The 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. In 2001, ICICI bank acquired Bank of
Madura Limited.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross
border needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada
and Russia, branches in Singapore and Bahrain and representative offices in the United
States,
China,
United
Arab
Emirates,
Bangladesh
and
South
Africa.
Today, ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialised subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management.
PERSONAL LOANS27
Whenever a person considers taking a loan the first question that comes to mind is about
the type of loan that he/she can get. The personal loan can be used for any purpose, such
as renovating your house, marriage expenses, medical expenses, holidays, purchasing
consumer durables, higher education etc.
No clarification is needed while applying for the personal loan. Neither do you require a
guarantor or security. You can obtain a personal loan primarily on the basis of your
income.
The factors that decide how good an interest rate you can get for your personal loan
include your income, your employer's profile, and your repayment track record for other
existing loans.
Many people, these days, take personal loans to repay their credit card dues, which carry
a higher interest rates than personal loan.
PERSONAL LOAN FEATURES:
Loans are available from Rs. 50000 to Rs. 25 lakh for any purpose depending on
your requirement
Loans available against repayment track record of any existing auto, personal or
home loan
Following are some of the advantages of the personal loans- While making an evaluation of the cost of the loan you need to consider the TAR (Total
Amount Repayable) which means that the total amount that you owe towards the bank or
a lender which also includes the rate of interest on the loan and the payments need to be
made on a monthly basis. A suitable deal is where you get a lower TAR.
- The maximum amount that you can borrow ranges up to 25,000 and the time period
for the refund is up to ten years. The advantage with the personal loan is that when you
take a maximum amount as a loan then you have to pay a lower rate of interest.
- It is totally different from the terms and conditions for the mortgage. The unsecured
personal loans are not protected for your property so if you are not able to refund the loan
then you can be rest assured that your house is safe.
- The interest rates for the personal loans are also fixed. This makes it easy for you to
make a planning for the payments that has to be made. The refunding amount also
remains stagnant all the way through the time period of the loan.
- With a dynamic market scenario of loans the rate of interest has seen so many ups and
downs. Now to get a loan it has become simpler than ever before. The financial
companies offer you loans through their telephone service. They have toll-free numbers
and they guide and provide you the best deals and offers.
- Various financial companies and clever lenders introduce certain plans like- make a
purchase and pay it later, offer free gift items, etc. These will only raise your price of the
loan. So take a wiser decision and go for the basic loan with favorable terms and
conditions. Always make a choice for those loans which have a low rate of interest and
where the terms of the refund are moderate.
- Dont make a hasty decision in choosing a personal loan. It is not right to take a loan
from just another bank. Make a survey and try to find out various offers and plans that
various other banks and financial companies have to offer. Now with the internet things
has become very simpler. You can visit various financial companies, what are the offers
and plans these companies are offering. Accordingly you can take a decision whichever
plan suits you.
- The PPI (Payment Protection Insurance) provides you the refund on a monthly basis if
you are not able to work, you have met with an accident, in case you have suffered a
heavy loss in your business, you are not employed anywhere, and make a payment for
your loan in case of your death. You should be aware of this type of insurance as it is a
costly affair and it adds an amount ranging from 1,000 to 5,000.
- According to a survey majority of the personal loans are paid off before the completion
of their tenure. You need to look out for those lenders who take heavy amount for the
settling of your loans before the tenure.
- You have to handle the annual percentage rates very carefully as it entirely depends on
your financial credibility. You probably might not be eligible as to be entitled for it. You
need to have a good credit history otherwise you wont be able to qualify for the lenders
potential customer list.
Here are few guidelines before taking any concrete decision regarding the
personal loans:35
- Analyze all the offers and schemes before applying for the loan. There are various
lenders who are not real and their motive is just to earn profits.
- To be entitled for a personal loan the procedure followed is rigorous although there is
less documentation involved in it.
- Go through the contract thoroughly and reassess the closure price and for any hidden
cost (If any). It is an important step which will only benefit you.
- If you are planning for a personal loan then most of the time it is cheaper than getting a
credit card.
- Excluding the consumer durable loans the rate of interest for the personal loans are
high.
- Unsecured personal loans are better for those people who are in a need of instant
financial assistance as these loans have a minimal paper work. The approval process is
also very quick and there is no appraisal of the collateral item
.
- As there is an absence of the appraisal of the collateral. The unsecured personal loans
are best suited to those people who dont own their property, probably the tenants.
It is quite evident from the name that you dont have to deposit any collateral against the
loan with the lender. The lender gets the assurance of the refunding of the loan when you
deposit the collateral against the loan. As discussed earlier in unsecured personal loans
there are no collateral needed. The lenders in order to minimize the risk factor charge
heavy rate of interest from you, the time period of the refund of the loan is kept for a
shorter period, the amount of the loan is also small, and the terms and the guidelines are
kept very stringent.
There are people who are not of the view of putting their dream house on risk just in case
they are not able to refund the loan. The unsecured personal loans are best for those
people who dont have their own house, people living on rent, students who are away
from their native places. The unsecured personal loans should be preferred in those
conditions where you dont have anything to give to the lender as security. The unsecured
personal loans are most costly than the secured personal loans.
The lender judges the refunding capacity from your past financial background and the
information about your earnings projected by you just in case you have not deposited any
collateral. Usually it is your financial background and your current earnings that act as a
deciding factor of your rate of interest. The lenders also provides the unsecured personal
loans for those who are financially dependant on others those have a age limit above sixty
years and those who are very poor and are not able to fulfill their basic necessities.
SALARIED INDIVIDUALS
Proof of applicant's identity (one of the following): Applicant's Passport
Applicant's Defense identity card
Applicant's Driving license
Applicant's Government identity card
Applicant's Photo PAN card
Applicant's Voter's identity card
Applicant's Photo ration card
Financial documents
Bank Statements (latest 3 months bank statement / 6 months bank passbook) Latest salary
slip or current dated salary certificate with latest Form 16
Financial documents
Bank Statements (latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA
Qualification proof of the highest professional degree
Financial documents
Bank Statements(latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA
Proof of continuation (Trade license /Establishment /Sales Tax certificate)
Other Mandatory Documents (Sole Prop. Decal. Or Cert. Copy of Partnership
Deed,Cert. Copy of MOA, AOA & Board resolution.)
Financial documents
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA
Proof of continuation (Trade license /Establishment /Sales Tax certificate)
Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership
Deed, Certified true copy of Memorandum & Articles of Association (certified by
Director) & Board resolution (Original)
Personal Loan
Express Loans
Loan purpose:
Amount requested:
Eligible loan amount:
Max Amount Allowed
Personal Loan
Rs.100,000
Rs.240,000
12 x salary multiple
Personal Loan
Rs.100,000
Rs. 0
(Salary):
Max Amount Allowed (Self
1 x income multiple
Employed):
Loan term:
EMI:
Total interest:
Total to repay:
Interest Rates
36 months
Rs.3,516
Rs.26,565
Rs.126,565
36 months
Rs.3,871
Rs.39,355
Rs.139,355
Interest rate:
23.00%
16.00%
Eligibility
Minimum income (NMI) -
Rs.8,000
Rs.7,000
Salaried:
Minimum income (NAI) -
Rs.60,000
Rs.60,000
Self Employed:
Maximum age:
Eligibility notes:
65 years
Employees of Public Ltd.
55 years
Salaried Individuals
including employees of
MNCs Or Government.
Firms / Proprietorship
bodies
Self Employed (Individuals)
- Filing I.T. Returns include self-employed Sole proprietors, Partners &
Directors in the Business of
Manufacturing, Trading or
Services
Rs.20,000
Rs.1,500,000
60 months
Monthly
Charges for late payment
Repayment:
or through Standing
customer.
Security:
Insurance:
Exclusive features:
Rs.50,000
Rs.1,000,000
48 months
Monthly
ranging from 12 to 36
months.
Documentation:
Rs. 15 lakhs
/ Certified Financials,
Proof of Qualification
Professionals / Govt
attested by Bankers)
employees ,
deed,Proof of Residence
/passbook).
Receipt,
one)Passport / Driving
Employee ID card.
2%
5.6% on principal
outstanding
Product Name:
Purpose:
Loan Details
Personal Loan
Resident
Loan Type:
Amount Requested:
Max Amount Allowed (Salary):
Max Amount Allowed (Self
Personal Loan
Rs.100,000
12 x salary multiple
1 x income multiple
Employed):
Loan Term:
EMI:
Total Interest:
Total to Repay:
36 months
Rs.3,871
Rs.39,355
Rs.139,355
Interest Rates
Interest Rate:
Eligibility
Minimum Income (NMI) -
23.00%
Rs.8,000
Salaried:
Minimum Income (NAI) Self
Rs.60,000
Employed:
Maximum Age:
Eligibility Notes:
65 years
Employees of Public Ltd. cos. , Private Ltd. cos.
MNCs Or Government.
Self employed professionals like Doctors, MBA's,
Architects, CA's, Engineers, Traders &
Manufacturers.
Rs.20,000 to Rs.1,500,000
0 to 60 months
Extra Repayments:
Repayment:
Exclusive Features:
Documentation:
Fees
Processing Fees:
Prepayment Charges:
2%
5.6% on principal outstanding
General
Institution name:
Product Name:
Purpose:
Loan Details
Express Loans
Resident
Loan Type:
Amount Requested:
Loan Term:
EMI:
Total Interest:
Total to Repay:
Personal Loan
Rs.100,000
36 months
Rs.3,516
Rs.26,565
Rs.126,565
Interest Rates
Interest Rate:
Eligibility
Minimum Income (NMI) -
16.00%
Rs.7,000
Salaried:
Minimum Income (NAI) Self
Rs.60,000
Employed:
Maximum Age:
Eligibility Notes:
55 years
Salaried Individuals including employees of Public
and Private limited companies / Partnership Firms /
Proprietorship Firms, Government Sector employees
including public sector undertakings and central,
state and local bodies
Self Employed (Individuals) - Filing I.T. Returns include self-employed - Sole proprietors, Partners &
Directors in the Business of Manufacturing, Trading
or Services
Rs.50,000 to Rs.1,000,000
0 to 48 months
The loan will be paid through post-dated cheques or
through Standing Instructions to debit your HDFC
Exclusive Features:
Documentation:
Beginning
Loan
Balance
TotalPayment
Principal
Interest
Ending
Loan
Balance
Cummulative
Interest
Rs.100000.00
Rs.1916.67
Rs.98045.69
Rs.3795.88
Rs.96053.93
Rs.5636.91
Rs.94023.99
Rs.7439.04
Rs.91955.15
Rs.9201.51
Rs.89846.65
Rs.10923.57
Rs.87697.74
Rs.12604.44
Rs.85507.64
Rs.14243.34
Rs.83275.56
Rs.15839.46
10
Rs.81000.71
Rs.17391.97
11
Rs.78682.25
Rs.18900.05
12
Rs.76319.35
Rs.20362.83
13
Rs.73911.17
Rs.21779.46
14
Rs.71456.83
Rs.23149.05
15
Rs.68955.44
Rs.24470.70
16
Rs.66406.12
Rs.25743.48
17
Rs.63807.93
Rs.26966.47
18
Rs.61159.94
Rs.28138.70
19
Rs.58461.20
Rs.29259.21
20
Rs.55710.74
Rs.30327.00
Rs.52907.55
Rs.31341.06
22
Rs.50050.64
Rs.3870.97 Rs.2911.67
Rs.959.30 Rs.47138.97
Rs.32300.36
23
Rs.47138.97
Rs.3870.97 Rs.2967.48
Rs.903.50 Rs.44171.50
Rs.33203.86
24
Rs.44171.50
Rs.3870.97 Rs.3024.35
Rs.846.62 Rs.41147.15
Rs.34050.48
25
Rs.41147.15
Rs.3870.97 Rs.3082.32
Rs.788.65 Rs.38064.83
Rs.34839.13
26
Rs.38064.83
Rs.3870.97 Rs.3141.40
Rs.729.58 Rs.34923.43
Rs.35568.71
27
Rs.34923.43
Rs.3870.97 Rs.3201.61
Rs.669.37 Rs.31721.83
Rs.36238.07
28
Rs.31721.83
Rs.3870.97 Rs.3262.97
Rs.608.00 Rs.28458.85
Rs.36846.07
29
Rs.28458.85
Rs.3870.97 Rs.3325.51
Rs.545.46 Rs.25133.34
Rs.37391.54
30
Rs.25133.34
Rs.3870.97 Rs.3389.25
Rs.481.72 Rs.21744.09
Rs.37873.26
31
Rs.21744.09
Rs.3870.97 Rs.3454.21
Rs.416.76 Rs.18289.88
Rs.38290.02
32
Rs.18289.88
Rs.3870.97 Rs.3520.42
Rs.350.56 Rs.14769.47
Rs.38640.58
33
Rs.14769.47
Rs.3870.97 Rs.3587.89
Rs.283.08 Rs.11181.58
Rs.38923.66
34
Rs.11181.58
Rs.3870.97 Rs.3656.66
Rs.214.31
Rs.7524.92
Rs.39137.97
35
Rs.7524.92
Rs.3870.97 Rs.3726.74
Rs.144.23
Rs.3798.17
Rs.39282.20
36
Rs.3798.17
Rs.3870.97 Rs.3798.17
Rs.72.80
Rs.0.00
Rs.39355.00
21
HDFC Bank
Product name:
Express Loans
Interest rate:
16.00%
Payment
number
1
Beginning
Total
Principal
Interest
Ending
Cummulative
Loan
Payment
Loan
Interest
Balance
Balance
Rs.100000.00 Rs.3515.70 Rs.2182.37 Rs.1333.33 Rs.97817.63
Rs.1333.33
Rs.2637.57
Rs.3912.32
Rs.5157.19
Rs.6371.78
Rs.7555.69
Rs.8708.51
Rs.9829.82
Rs.10919.21
10
Rs.11976.25
11
Rs.13000.51
12
Rs.991.04 Rs.71803.10
Rs.13991.54
13
Rs.957.37 Rs.69244.78
Rs.14948.92
14
Rs.923.26 Rs.66652.34
Rs.15872.18
15
Rs.888.70 Rs.64025.33
Rs.16760.88
16
Rs.853.67 Rs.61363.30
Rs.17614.55
17
Rs.818.18 Rs.58665.77
Rs.18432.73
18
Rs.782.21 Rs.55932.28
Rs.19214.94
19
Rs.745.76 Rs.53162.34
Rs.19960.70
20
Rs.708.83 Rs.50355.47
Rs.20669.53
21
Rs.671.41 Rs.47511.17
Rs.21340.94
22
Rs.633.48 Rs.44628.95
Rs.21974.42
23
Rs.595.05 Rs.41708.30
Rs.22569.47
24
Rs.556.11 Rs.38748.71
Rs.23125.58
25
Rs.516.65 Rs.35749.65
Rs.23642.23
26
Rs.476.66 Rs.32710.61
Rs.24118.90
27
Rs.436.14 Rs.29631.05
Rs.24555.04
28
Rs.395.08 Rs.26510.43
Rs.24950.12
29
Rs.353.47 Rs.23348.20
Rs.25303.59
30
Rs.311.31 Rs.20143.80
Rs.25614.90
31
Rs.268.58 Rs.16896.68
Rs.25883.48
32
Rs.225.29 Rs.13606.27
Rs.26108.77
33
Rs.181.42 Rs.10271.98
Rs.26290.19
34
Rs.136.96
Rs.6893.24
Rs.26427.15
35
Rs.91.91
Rs.3469.44
Rs.26519.06
36
Rs.46.26
Rs.0.00
Rs.26565.32
Description of Charges:
Processing fee
Prepayment fee
Charges for late payment (loans)
Cheque bounce charges
Duplicate statements charges
Documentation charges
Service tax
Processing fee:
Processing fee is the amount charged by banks to cover the cost of processing your loan
application. Processing fees vary from one bank to another. Some banks ask you to pay
the processing fee upfront even before the loan is sanctioned. This is often charged when
you submit your loan application along with the supporting documents.
The processing fee is generally a percentage of the loan amount and is between 1-2% for
personal loans. Some banks levy a flat charge of Rs 1000 or Rs 2000 upfront, and then
deduct the balance processing fee (if any) from the loan amount before disbursal.
The processing fee is non-refundable. Some banks say the processing fee will be
refunded if the loan is not sanctioned. It is recommended that you take this in writing
from the bank as technically, processing fee is non-refundable.
Pre-payment fee:
The pre-payment fee is the penalty paid by the borrower for foreclosing the loan before
the actual tenure. Pre-payment fees are levied as a percentage of the outstanding principal
of the loan amount. The prepayment fee varies from bank to bank. It varies from 2% to
5% of the outstanding loan amount, if the repayment amount exceeds 25 per cent of the
outstanding loan amount.
Cheque bounces mean that a cheque has been presented for clearance, but the amount
written on the check exceeds the available balance in the account. It is often colloquially
referred to as a bounced cheque. Businesses frequently use the term dishonoured cheque.
If you have given post-dated cheques to the bank to debit the EMI from your account,
ensure that you have sufficient funds in your account every month. If a single cheque
bounces, the bank charges anything from Rs 250 to Rs 500 as penalties.
Documentation charges:
Banks levy documentation charges towards the verification of the various documents you
provide towards the loan application. Many banks employ third-party vendors to do the
document verification. The expense on this account is usually passed on t the customer,
which range from Rs 500 or Rs 1000.
Service tax:
Service tax is a tax levied on service providers who have annual revenue of more than 8
lakh. Banks loans too fall under the purview of service tax. Service tax is charged at the
rate of 12.36% on the interest and any other charges like processing fee levied by the
lender.
Interest
Brand name
Tenure
Eligibility
Other Facilities
LITERATURE REVIEW
Once the problem is formulated, the researcher has to undertake an extensive literature
survey related to problem. The literature survey undertaken here includes books and
different websites from the internet.
where by individuals decide what, when, where, how and from whom to purchase
goods and services. Buying behaviour may be viewed as an orderly process here
by individual interacts with his environment for the purpose of making market
decision on products and services.
Nair Suja. R.4 - The success of the firm will be determined by how effective it
has been in meeting the diverse customer needs and wants by treating each
customer as unique and offering products and services to suit his/her needs.
Kothari C.R.6
Baack
Clow10,
Integrated
advertising,
promotion
&
Marketing
Kotler Philip & Keller Kevin lane12, Marketing management, 12th Edition
PEARSON(Prentice Hall) Pp-297
concepts and applications, Fourth Edition, Tata Mc Graw Hill, New Delhi, PP 58,9,19 .
Leon G. Schiffman and Lesli Lazar kanauk 14, Consumer Behavior, Eight
Edition, Prentice Hall of India, New Delhi, PP 8,9,11,19,20.
WEBSITEES
www.cnxz.cn16 , loan definition of Personal loan has been taken from here.
http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm17
http://www.thehindubusinessline.com/iw/2004/11/28/stories/2004100421500.htm
www.honeybeeindia.com25
JOURNALS
MAGZINES
35
Banusmathy Dr. Indian Journal of Marketing 40 xxxv March 2006, Page 31
RESEARCH METHODOLOGY4
Research methodology has many dimensions, it includes not only the research
methods but also consists the logic behind the methods used in the context of the study
and explains why only a particular method of technique had been used so that search lend
themselves to proper evaluation. Thus in a way it is a written game plan for concluding
research. Research methodology has many dimensions. It includes not only the research
methods but also considers the logic behind the methods used in the context of the study
and complains why only a particular method of technique has been used. It also helps to
understand the assumption underlying various techniques and the criteria by which they
can decide that certain technique will be applicable to certain problems and other will
not. Therefore in order to solve a research problem, it is necessary to design a research
methodology for the problem as the some may differ from problem to problem.
This focuses on the various techniques, methods and assumptions used in this
study. It sheds light on the research problem, objectives of the study, and also its
limitations. The later part of this explains the manner, in which the data is collected,
classified, tabulated, analyzed and interrupted so as to each to conclusive results.
SAMPLING
It becomes impossible to contact each and every individual of the population due to
limitations of essential resources like time and money. Therefore, the study is preferably
allowed down to a representation sample to make the study more manageable.
Keeping in the view the objectives and resource limitation of the study, 100
respondents are considered.
SAMPLING PLAN:The following factors will be taken into consideration within the scope of sampling plan:
I Sampling Unit:
It defines the target population that will be sampled i.e. it answers who is to be surveyed.
In this study, the sampling unit is consumers who have availed the Personal Loans.
II Sampling Size:
It indicates the numbers of people to be surveyed. Though large samples give more
reliable results than small samples but due to constraints of time and money, the sample
size was restricted to 100 respondents.
RESEARCH DESIGN:To analysis the consumer behaviors of the residents of Yamuna Nagar City Sample
Survey Methods has been employed though other methods are also important. This
method is given prime significance in modern research because of its extensive use to
study the relationship of different factors, attitudes and practices of society and to explore
the problems that cannot be treated by experimental methods.
To collect data, a number of techniques are employed under the sample survey
method i.e. questionnaire. The increasing use of questionnaire is probably due to
Target Segment
number of questions placed in logical order. So, that the objective of the question is clear
to the respondents. All the questions are centered on the problem keeping in the mind.
iii) Analysis of Data:
Data, after collection, has to be analyzed in accordance will the outline laid for the
time of developing the research plan. The term analysis refers to the computation of
certain measures along with searching for patterns of relationship that exist among data
groups. Data presented in raw state appear unrecognized and complex. Statistical
processors are used this complex data into some significant understandable form. Data
was analyzed with help of XLSTAT software. The tables from XLSTAT are attached as
annexure.
ANALYTICAL TOOLS
CORRELATION5
According to Croxton and Cowden, when the relationship is of a quantitative nature,
the appropriate statistical tool for discovering and measuring the relationship and
expressing it in a brief formula is known as correlation
TYPES OF CORRELATION6
Correlation is classified in several different ways. Three of the most important ways are: Positive and Negative Correlation: When two variable X and Y move in
same direction is Positive Correlation and when both variables move in
opposite direction that is Negative Correlation.
Simple, Partial and Multiple Correlations: When we study the relationship
between two variables only that is Simple Correlation. When three or more
variables are taken but relationship between any two of the variable is studied,
assuming other variables as constant that is Partial Correlation and when we
study the relationship among three or more variables that is Multiple
Correlation.
Linear and Curvi-Linear Correlation: when the ratio of change of two
variables X and Y remains constant throughout, then they are said to be Linear
Correlated and when the ratio of change between the two variables is not
constant but changing, then correlation is said to be Curvi-Linear.
Degree
of Positive
Negative
1
2
correlation
Perfect correlation
+1
High Degree of Between
-1
+.75 Between -.75 to-1
correlation
to+1
Moderate Degree of Between
+.25 Between
Correlation
Low
Degree
to+.75
of Between 0 to+.25
to-.75
Between 0 to-.25
Correlation
Absence
of 0
Correlation
x.y
R=
x 2.y 2
CORRELATION NO:-1
PRINCIPAL
1954.31
-.25
1991.76
2029.94
2068.85
2108.5
96053.93
94023.99
91955.15
89846.65
CORRELATION NO:-2
PRINCIPAL
2182.37
2211.47
2240.15
2270.83
2301.11
Interpretation:- At the level of significance Alpha=0.050 the decision is to reject the null
hypothesis of absence of correlation.In other words, the correlation is significant.
Absolute MDS: each dissimilarity dij must exactly match the distance between
points i and j in the representation space.
Ratio MDS: the ratio of all distance pairs in the representation space must
correspond to the ratio of the corresponding dissimilarities.
Interval MDS: the ratio of all differences between distances in the representation
space must correspond to the ratio of the differences of the corresponding
dissimilarities.
In the present study XLSTAT is used to calculate the results of the MDS The result shows
that in the case of absolute model, the disparities are equal than the dissimilarities.
Interpretation
The value of the kruskal stress is 0.003, which is very small as compared to 1. This
implies that the data collected very closely follows the normal distribution and the
skewness is very minute and that to, the data is minutely skewed in the positive direction.
Thus, the data is highly accurate.
Interpretation
The value of the kruskal stress is 0.014, which is very small as compared to 1. This
implies that the data collected very closely follows the normal distribution and the
skewness is very minute and that to, the data is minutely skewed in the positive direction.
Thus, the data is highly accurate.
F1
39
8
27
21
5
F2
27
6
14
12
41
F3
15
37
17
7
24
F4
21
29
10
33
16
F5
7
20
32
27
14
Interpretation
The value of the kruskal stress is 0.141, which is very small as compared to 1. This
implies that the data collected very closely follows the normal distribution and the
skewness is very minute and that to, the data is minutely skewed in the positive direction.
Thus, the data is highly accurate.
Data Collection9
The data can be collected from primary and secondary sources. The basic premises
of my study are primary data but at the same time it is supplemented with the secondary
data. Convenience sample that was representative of the target market was chosen, the
respondents were contacted personally and the research instrument use of collecting data
was the questionnaire.
I) Primary data collection:
Primary data is the data which is collected through observation or direct
communication with the respondent in one form or another. These are several methods
for primary data collection like Observation Method, Interview Method, through
schedules, through questionnaires and so on.
II) Secondary data collection methods:
Secondary data is collected through
Magazines
Journals
Newspapers
Websites
HYPOTHESIS TESTING8
Chi-square test is used when the set of observed frequencies obtained after
experimentation have to be supported by hypothesis or theory. The test is known as X 2test of goodness of fit and is used to test if the deviation between observation
(experiment) and theory may be attributed to chance (fluctuations of sampling). 2 also
enables us to explain whether or not two attributes are associated or related to each other.
Chi-Square Test
year
1
2
3
4
5
Observed(O)
1
2.5
3.4
6.14
8.5
Expected(E)
2
3
5
6
9
(O-E)
-1
-0.5
-1.6
0.14
-0.5
(O-E)*(OE)
1
0.25
2.56
0.0196
0.25
Sum
(O-E)*(O-E)/E
0.5
0.083333333
0.512
0.003266667
0.027777778
1.126377778
INTERPRETATION:
Chi-Square Test shows that tabulated value is more than the observed value so the null
hypothesis is accepted that is the sale of the company is not much fluctuating from the
expected sales of Personal loans.
o
o
o
o
o
o
In this test we have formulated null hypothesis that the company has even
trend in its sale during last few years .
And alternate hypothesis is that the sales of the company are very odd in
nature.
That means in some years the targets are achieved but for some its not.
The calculated value is less than the tabulated value.
That is 1.125 < 9.485. so we accept the null hypothesis and reject the
alternate hypothesis.
It shows that the companys sale is not even...
Limitations
TIME AND MONEY CONSTRAINTS: - As due to universe is very large and the time
and money is very limited, it is very difficult to cover all the respondents.
DIFFICULTY IN GETTING INFORMATION:- Some of the respondents are not
candid enough to reveal all the required information. They might give inflated or wrong
information.
DIVERSITY IN NATURE:- Because of the diversity in the nature of the various
respondents, the findings of the survey can not be generalized.
PERSONAL BIASNESS :- Also some personal biasness might have crept in to the
information provided by respondents.
SECONDARY DATA :- In this study the snag of finding the secondary data is also a
challenge because there is lack of Magazines, Journals & Internet Information on
Personal Loans. The collection of getting secondary data from Banks was also a
challenging task.
PRIMARY DATA:-The collection of primary data is also very tedious task to perform
because Respondents are not ready to give their response through Questionnaire & Bank
Employees are also not interested to provide required Information.
Interpretation:The above diagram shows that in the sample of 100 people there are 29% Salaried
Individual, 21% Self Employed Professional, 31% Self Employed Individual & 19% are
Self Employed Pvt. Company.
2Q:-
Interpretation:The above diagram shows that 36% Respondents are having Account in ICICI Bank, 20%
having Account in HDFC Bank, 7% are having Account in both & 37% are having no
one Account in these Bank.
3Q:-
Interpretation: The above diagram shows that 13% Respondents are having annual Income between
100000-150000, 33% are having between 150000-200000, 17% are having between
200000-300000, 28% are having between 300000-500000 & 9% are having above from
500000 Rs.
4Q:-
Interpretation:Above diagram shows that 61% Respondents have availed Unsecured Loans & 39%
have availed Secured loans.
5Q:-
Interpretation:The above diagram shows that 57% Respondents are in Favor of ICICI Bank &
43% are in the Favor of HDFC Bank in case of Banking Services.
6Q:-
Interpretation:The above Diagram shows that 27% Respondents have availed the facilities of Personal
Loan from ICICI Bank, 21% have availed from HDFC Bank, 6% have taken from Both
& 45% have not availed the facilities of Personal Loans.
7Q:-
Interpretation:The above diagram shows that 51% Respondents take Personal Loans for Personal
Affairs, 12% take it for Education, 7% for Travel, 26% for Business & 4% for Other
purposes.
8Q:-
Interpretation:The above diagram shows 32% Respondent prefer Personal Loans over other because of
Flexibility, 39% because of Unsecured Nature, 16% because of High Tenure, 4% because
of Interest Rates & 9% because of Other Reasons.
9Q:-
Who Influenced you the most while going for Personal Loans?
Interpretation:Above diagram shows that 37% Respondents are Influenced by Self while going for
Personal Loans, 9% from Family Members, 27% from Friends, 6% from Relatives and
21% are Influenced from Banks Executives.
10Q:-Do
Loans?
Interpretation:The above diagram shows that 3% Respondents are Highly Agree with the Late Payment
Charges for Personal Loans, 7% are Agree, 20% are Neutral, 39% are Dis-Agree & 31%
are Highly Dis-Agree.
11Q:-
Interpretation:The above diagram shows that 23% Respondents are Highly Satisfied with the NOC
Procedure in Personal Loans, 39% are Dis-Satisfied, 10% are Neutral, 17% are DisSatisfied & 11% are highly Dis-Satisfied.
12Q:-
Interpretation:The above diagram shows that 33% Respondents are Sure to go for Other Banks in case
if they offer Attractive Schemes for Personal Loans, 15% respond as Often, 14% are
Neutral, 17% are Not Sure & 21% respond as Never.
13Q:-
Interpretation:The above diagram shows that 39% Respondent respond that they will Highly
Recommend their availed Brand name, 22% respond as Recommend 3% are Neutral, 7%
respond as Not Recommend & 29% respond as Never Recommend.
FINDINGS
PREFER TO AVAIL PERSONAL LOANS:- It is found during the study
that preference of the people are increasing towards the Unsecured loans as
compare to the Secured loans.
LOAN AMOUNT AVAILABILITY:- it is find during the study that
Customers are not very Satisfied with the Loan Amount availability from
Personal Loans because they require more amount for Personal use.
STRINGENT DOCUMENTATION:- it is find during the study that the
procedure in case Personal Loan is just like a Snail pace as compare to the
other Loans available.
HIGH ELIGIBILITY CRITERIA:- in case of Personal Loan the criteria for
availing the Personal Loan is very high so many of the Customers who want
to avail the Personal Loan have to go for other alternatives.
LESS TENURE:- the Payback period or can say that the duration for which
the Loan is provided by the Bank in case of Personal Loan is very much Low.
HIGH ADDITIONAL CHARGES:- it is find during the study that the
customers are very much Dis-Satisfied with the Additional Charges charged
by Banks for Personal Loan.
HUGE PREPAYMENT CHARGES:- it is come in to view that in case of
Prepayment in Personal Loans a high amount is charged from customer which
is not justified.
BIBLIOGRAPHY
Kotler Philip & Keller Kevin lane, Marketing management, 12th Edition
PEARSON(Prentice Hall) Pp-297
Loudon ,David L, and Bitta, Abert J. Della , Consumer Behavior and concepts
and applications, Fourth Edition, Tata Mc Graw Hill, New Delhi, PP 5-8,9,19 .
Leon G. Schiffman and Lesli Lazar kanauk, Consumer Behavior, Eight Edition,
Prentice Hall of India, New Delhi, PP 8,9,11,19,20.
Kardes, Frank R., Consumer Behavior and Managerial decision making, Second
Edition, PP 23,47.
Kothari C.R.6 For data analysis different statistical techniques are being used such
as scaling techniques, correlation, hypothesis testing.
WEBSITEES
www.cnxz.cn
http://www.thehindubusinessline.com/iw/2004/11/28/stories/2004112800421500.
htm
http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm
www.icicibank.com/aboutus
www.hdfcbank.com/za/products
www.apnaloan.com/aboutus
www.infomaworld.com/smpp
www.compareindia.com
www.prospect-magazine.com
www.compareloan.com
www.honeybeeindia.com
www.loanbazaar.com
www.loanmantri.com
ANNEXURES
ANNEXURE
13
17
12
19
39
Mean
21.750
20.750
22.000
20.250
15.250
Standard deviation
4.867
4.603
7.176
6.796
8.555
13
17
12
F1
4.449
88.971
F2
0.397
7.939
F3
0.155
3.090
Correlation matrix:
19
39
13
1
0.622
0.759
0.913
0.815
17
0.622
1
0.833
0.877
0.894
12
0.759
0.833
1
0.923
0.985
19
-0.913 -0.877
-0.923
1
0.971
39
-0.815 -0.894
-0.985
0.971
1
In bold, significant values (except diagonal) at the level of significance alpha=0.050 (two-tailed test)
Eigenvalues:
Eigenvalue
% variance
Cumulative %
88.971
Number of removed trivial eigenvalues: 2
96.910
100.000
0.768
-0.593
-0.157
-0.136
0.122
F3
-0.242
-0.595
0.692
0.187
-0.271
0.484
-0.374
-0.099
-0.086
0.077
F3
-0.095
-0.234
0.272
0.073
-0.106
Eigenvectors:
13
17
12
19
39
F1
-0.412
-0.426
-0.454
0.471
0.470
F2
F1
-0.870
-0.898
-0.957
0.994
0.991
F2
Factor loadings:
13
17
12
19
39
13
17
12
19
39
F1
0.757
0.806
0.916
0.987
0.983
F2
0.234
0.140
0.010
0.007
0.006
F3
0.009
0.055
0.074
0.005
0.011
59.049
35.157
2.472
1.843
1.479
F3
5.862
35.459
47.876
3.483
7.320
-0.826
0.339
-0.337
0.823
F3
0.150
0.567
-0.450
-0.267
13
17
12
19
39
Factor scores:
Obs1
Obs2
Obs3
Obs4
F1
17.007
18.111
20.596
22.194
22.093
F2
F1
-2.249
1.669
2.502
-1.921
F2
Obs1
Obs2
Obs3
Obs4
F1
0.878
0.864
0.952
0.831
F2
0.118
0.036
0.017
0.153
F3
0.004
0.100
0.031
0.016
42.948
7.242
7.132
42.678
F3
3.619
52.106
32.697
11.578
Obs1
Obs2
Obs3
Obs4
F1
28.433
15.651
35.172
20.744
F2
Observation coordinates:
Observation
23
27
31
14
Dim1
3.018
-2.404
-1.418
0.804
Dim2
-3.766
6.071
2.777
-5.082
Dim3
5.824
-3.687
-5.686
3.549
Dim4
12.428
7.205
-10.616
-9.017
Dim5
5.303
8.983
-5.150
-9.136
0
16.045
28.901
26.081
27
16.045
0
23.090
27.902
31
28.901
23.090
0
13.055
14
26.081
27.902
13.055
0
27
31
14
23
0
16.000
29.000
26.000
27
16.000
0
23.000
28.000
31
29.000
23.000
0
13.000
14
26.000
28.000
13.000
0
In the case of the absolute model, the disparities are equal than the dissimilarities
Residual distances:
23
23
27
31
14
0
0.045
-0.099
0.081
27
0.045
0
0.090
-0.098
31
-0.099
0.090
0
0.055
14
0.081
-0.098
0.055
0
Comparative table:
Dissimilarit
Dissimilarity
Disparity
Pair
y
Disparity Distance
rank
rank
31 - 14
13.000
13.000
13.055
1
1
23 - 27
16.000
16.000
16.045
2
2
27 - 31
23.000
23.000
23.090
3
3
23 - 14
26.000
26.000
26.081
4
4
27 - 14
28.000
28.000
27.902
5
5
23 - 31
29.000
29.000
28.901
6
6
In the case of the absolute model, the disparities are equal than the dissimilarities
Summary of repetitions:
Distance
rank
1
2
3
4
5
6
Initial
Fin.
Repetition
Iterations
stress
stress
1
50
0.196
0.009
2
50
0.480
0.011
3
50
0.455
0.011
4
50
0.368
0.010
5
50
0.395
0.009
6
50
0.429
0.003
7
50
0.368
0.012
8
50
0.233
0.011
9
50
0.256
0.011
10
50
0.414
0.010
In bold, repetition corresponding to the best solution that XLSTAT found
Observation coordinates:
Observation
15
16
21
37
Dim1
4.246
2.874
-1.169
-5.951
Dim2
8.079
3.425
-2.988
-8.516
Dim3
6.274
0.603
-3.597
-3.280
Dim4
-2.659
7.531
2.464
-7.335
Dim5
7.713
-0.567
-3.100
-4.046
0
15.103
19.809
25.116
16
15.103
0
10.354
21.648
21
19.809
10.354
0
12.266
37
25.116
21.648
12.266
0
Residual distances:
15
15
16
21
37
0
0.103
-0.191
0.116
16
0.103
0
0.354
-0.352
21
-0.191
0.354
0
0.266
37
0.116
-0.352
0.266
0
Comparative table:
Dissimilarit
Dissimilarity
Disparity
Pair
y
Disparity Distance
rank
rank
16 - 21
10.000
10.000
10.354
1
1
21 - 37
12.000
12.000
12.266
2
2
15 - 16
15.000
15.000
15.103
3
3
15 - 21
20.000
20.000
19.809
4
4
16 - 37
22.000
22.000
21.648
5
5
15 - 37
25.000
25.000
25.116
6
6
In the case of the absolute model, the disparities are equal than the dissimilarities
Summary of repetitions:
Distance
rank
1
2
3
4
5
6
Initial
Fin.
Repetition
Iterations
stress
stress
1
50
0.466
0.014
2
50
0.326
0.014
3
50
0.324
0.014
4
50
0.452
0.014
5
50
0.423
0.014
6
50
0.421
0.014
7
50
0.322
0.014
8
50
0.412
0.014
9
50
0.353
0.014
10
50
0.417
0.014
In bold, repetition corresponding to the best solution that XLSTAT found
Observation coordinates:
Observation
27
15
12
7
Dim1
-2.990
-0.446
-0.091
3.527
Dim2
-11.860
-4.969
0.728
16.101
Dim3
-8.568
0.678
-0.893
8.783
Dim4
-6.720
1.175
-0.976
6.521
Dim5
2.026
2.202
-0.540
-3.687
0
14.206
16.290
36.515
15
14.206
0
6.870
24.262
12
16.290
6.870
0
20.227
7
36.515
24.262
20.227
0
Residual distances:
27
27
15
12
7
0
0.206
4.290
-4.485
15
0.206
0
-0.130
0.262
12
4.290
-0.130
0
4.227
7
-4.485
0.262
4.227
0
Comparative table:
Dissimilarit
Dissimilarity
Disparity
Pair
y
Disparity Distance
rank
rank
15 - 12
7.000
7.000
6.870
1
1
27 - 12
12.000
12.000
16.290
2
2
27 - 15
14.000
14.000
14.206
3
3
39789
16.000
16.000
20.227
4
4
15 - 7
24.000
24.000
24.262
5
5
27 - 7
41.000
41.000
36.515
6
6
In the case of the absolute model, the disparities are equal than the dissimilarities
Summary of repetitions:
Distance
rank
1
3
2
4
5
6
Initial
Fin.
Repetition
Iterations
stress
stress
1
22
0.513
0.141
2
23
0.611
0.141
3
24
0.658
0.141
4
23
0.710
0.141
5
24
0.632
0.141
6
22
0.529
0.141
7
22
0.552
0.141
8
23
0.368
0.141
9
23
0.498
0.141
10
24
0.668
0.141
In bold, repetition corresponding to the best solution that XLSTAT found
Annexure 4-Correlation 1
XLSTAT 7.1 - Correlation Tests - 4/2/2008 at 3:22:57 PM
Variable 1: workbook = Book6 / sheet = Sheet1 / range = $G$11:$G$14 / 4 rows and 1 column
Variable 2: workbook = Book6 / sheet = Sheet1 / range = $H$11:$H$14 / 4 rows and 1 column
Significance level: 0.05
-1.000
< 0.0001
0.05
Decision:
At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation.
In other words, the correlation is significant.
Annexure 5-Correlation 2
XLSTAT 7.1 - Correlation Tests - 4/2/2008 at 3:50:18 PM
Variable 1: workbook = Book1 / sheet = Sheet1 / range = $G$26:$G$30 / 5 rows and 1 column
Variable 2: workbook = Book1 / sheet = Sheet1 / range = $H$26:$H$30 / 5 rows and 1 column
Significance level: 0.05
-1.000
< 0.0001
0.05
Decision:
At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation.
In other words, the correlation is significant.
Sample Design:
The sample of my interest includes the customers of Personal Loans & the Banks
providing the Personal Loan, Yamunanagar
I have taken 100 as the sample size my study.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure.
The research design with help to answer the following questions:
Why the study is being made?
From where the data needed can be collected?
What time is required for the study to be competed & how much material is
needed.
What will be the technique for data collections?
How the data can be analyzed?