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Project Report: ON Personal Loans and Financing in Fullerton India Credit LTD
Project Report: ON Personal Loans and Financing in Fullerton India Credit LTD
ON
I sincerely express my gratitude for their indigenous and able guidance , constant
encouragement and for the discussion they had with the tenure of my work.
I once again take the opportunity to convey my heartiest thanks to all those who
were connected with the project directly and have provide me with a wonderful experience
and learning opportunity.
SHILPA NEGI
MBA – III – SEM (FINANCE)
GRAPHIC ERA UNIVERSITY
TABLE OF CONTENT
1.Acknowledgement
2.Research Methodology
3.Intoduction
6.Analysis of data
7.Sugession
8.References
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a Research. This
project comes under the head of “Marketing Research”. The “Marketing Research” is the
systematic design, collection, analysis and reporting of data and finding relevant solution to
a specific marketing situation or problem”. Sampling Plan – Sampling can be defined as the
section of some part of an aggregate or totality on the basis of which judgment or an
inference about aggregate or totality is made. The sampling plan helps in decision making
in the following areas:
Sample
size – Sample size refers to the total numbers of items about which the
information is desired. The sample size of the study is 100.
Data
Collection - Information has been collected from both Primary and Secondary Data.
Primary Data – Primary data are those, which are collected for the first time, and thus
happen to be original in character.
Primary Data has been collected in this study by conducting survey through Questionnaire.
Secondary Data – Secondary Data are those which have already been collected by someone
else and which already had been passed through the statistical process.
Secondary data has been collected in this study through Magazines, Web sites, Newspaper
and Journals.
INTRODUCTION…
Brand Origin
Fort Fullerton, named after Governor Robert Fullerton, was created to protect Singapore.
Singapore was then known as Temasek - the 'sea town'. Our parent company, Temasek
Holdings, incorporated in 1974, is one of Asia's biggest investment firms, with a diversified
US $134 Billion portfolio, spanning various industries. Financial services is one of the key
focus area of Temasek. Carrying forward this legacy, Fullerton india is deeply committed to
provide quality financial services to the growing Indian masses.
Fullerton India Parivaar has introduced a new concept in the Indian market. The company
have branches, which cater only to the specific needs of Salaried Individuals. Its Parivaar
branches provide customized products and solutions, especially designed keeping in mind
the unique circumstances and requirements of this segment. The Parivaar Loans cover a
wise range of products, which include:
· Unsecured Personal Loans
· Secured Loans
· Home Finance
· Home Equity Loans
Unsecured Personal Loans
An unsecured loan is a loan that is not backed by collateral, it is also known as asignature
loan or personal loan. Unsecured loans are based solely upon the borrower's credit rating.
An unsecured loan is considered much cheaper and carries less risk to the borrower.
· Second is an unsecured business loan which leaves the business responsible for the
repayment.
· Third is an unsecured business loan with a personal guarantee. In this type of unsecured
loan the borrower is the business, but guarantor will be the payer if the business defaults to
pay the loan.
Secured Loans
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as
collateral for the loan, which then becomes a secured debt owed to the creditor who gives
the loan. The debt is thus secured against the collateral. In any event if the borrower
defaults to repay, then the creditor takes possession of the asset used as collateral and may
sell it to satisfy the debt by regaining the amount originally lent to the borrower. There are
two purposes for a loan secured by debt. In the first purpose, by extending the loan through
securing the debt, the creditor is relieved of most of the financial risks involved because it
allows the creditor to take the property in the event that the debt is not properly repaid. In
exchange, this permits the second purpose where the debtors may receive loans on more
favorable terms than that available for unsecured debt, or to be extended credit under
circumstances when credit under terms of unsecured debt would not be extended at all. The
creditor may offer a loan with attractive interest rates and repayment periods for the secured
debt.
Home Equity Loan
A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower
uses the equity in their home as collateral. These loans are sometimes useful to help finance
major home repairs, medical bills or college education. A home equity loan creates a lien
against the borrower's house, and reduces actual home equity.
Types of Home Equity Loan
• Closed end home equity loan: The borrower receives a lump sum at the time of the
closing and cannot borrow further. The maximum amount of money that can be
borrowed is determined by variables including credit history, income, and the
appraised value of the collateral, among others. It is common to be able to borrow
up to 100% of the appraised value of the home, less any liens, although there are
lenders that will go above 100% when doing over-equity loans. However, state law
governs in this area; for example, Texas (which was, for many years, the only state
to not allow home equity loans) only allows borrowing up to 80% of equity. Closed-
end home equity loans generally have fixed rates and can be amortized for periods
usually up to 15 years. Some home equity loans offer reduced amortization whereby
at the end of the term, a balloon payment is due. These larger lump-sum payments
can be avoided by paying above the minimum payment or refinancingthe loan.
• Open end home equity loan: This is a revolving credit loan, also referred to as a
home equity line of credit, where the borrower can choose when and how often to
borrow against the equity in the property, with the lender setting an initial limit to
the credit line based on criteria similar to those used for closed-end loans. Like the
closed-end loan, it may be possible to borrow up to 100% of the value of a home,
less any liens. These lines of credit are available up to 30 years, usually at a variable
interest rate. The minimum monthly payment can be as low as only the interest that
is due.
Typically, the interest rate is based on the Prime rate plus a margin. Fullerton India Vyapaar
strives to improve the business and lives of the small business community. Their business is
focused only on small establishments with a turnover of less than Rs.25 Mn p.a.
Relationship Approach of the Company
The Company believes in a branch centric community led Relationship based approach in
meeting customer needs rather than using the services of a third party or a vendor such as
Direct Selling Agents. Under the organizational structure, the Company has in each of it’s
branches, a team of Relationship Managers and Officers who meet customers to understand
their business or profession and their credit requirements. Both the Vyapaar and Parivaar
divisions of the Company leverage the relationship approach in establishing a credit
relationship between the Company and the borrower. Loans are granted on the basis of
completed applications, completing the Know-Your-Customer (KYC) norms, discussion
with the customers about the terms of their loan, rate of interest, repayment arrangement,
etc. The branch only services customers in a limited area around the physical location of the
branch. The Company’s general policy is to be reasonable, transparent and fair with its
customers.The Company follows established procedures, understands customer
requirements and is reasonable in all its dealings with customers. The design of the
application forms and the relationship based processes, are to make sure that the Company
is transparent in its dealings and transactions. It is with this in mind that the Company has
set up the following guidelines as a Fair Practices Code in dealing with its customers
3. The terms and conditions of the loan are clearly mentioned in the Loan Agreement. The
Loan Agreement would specify the tenure, the amount of the loan, applicable rate of
interest, the Equated Monthly Installment (EMI) payments and other fees charged by the
Company. Processing fee, if collected would be clearly mentioned to the customer. A
Welcome Letter is also sent to our customers with Key details & Repayment Schedule
which mentions the EMIs, split by Principal and Interest components
4. In the event that the loan is rejected, the Company would communicate to the Customer
verbally or in writing about the rejection. The Relationship Managers/ Officers are
empowered to convey the information of the rejection of the loan verbally.
5. Customers at the time of disbursement of loan are advised about facilities available to
them and repayments they need to make from time to time. In any event the Company
undertakes to give full details of the loan, its current status, monthly or quarterly
repayments required from time to time on the basis of request made by the Customers.
6. The Company would release all the securities to the customer once the loan is repaid and
no dues are outstanding to the Company.
7. In case of request of a transfer of a loan account from one borrower or a lender to another
Company or a Bank, the transfer would be completed within 21 days of such a request,
provided the customer pays interest and all Company dues up to date.
8. As far as recoveries of loans are concerned the Company would follow its own
Collection Policy and procedure which is designed to be customer friendly. Under the
Company’s collection policy detailed guidelines are laid down for following the Code of
Conduct, with delinquent customers. Our collection procedures are constantly checked from
a customer’s point of view.
9. The Company has a detailed policy on customer satisfaction and complaints received. As
part of the Customer satisfaction assessment, detailed analysis of customer preferences and
their grievances or responses are taken into account in improving our operations constantly.
Complaints received are personally attended to by the Branch Manager and resolutions are
tracked by centrally by the Corporate Office in Mumbai. All grievances and complaints and
resolutions made are presented regularly to the Board of
Directors for their review.
Propositions
· The biggest proposition of Fullerton India is customer focus, both, in product design/
customization and service. As an organization, they are structured not around products but
along customer segments. They have separate verticals for the Salaried Individuals
(Parivaar) and for Small sized shop owners & Entrepreneurs (Vyapaar).
· This model lends itself to better understanding of our customers' financial situation and for
a better products offering to them. With this holistic understanding of the customers, the
company is also able to combine secured and unsecured products and structure the loan in a
manner which is ideally suited to meet individual customer requirements.
· The company employed Relationship Officers to service the needs of the customers. There
are no agents or other intermediaries, coming in between the customer and the company.
These Relationship Officers are the end-to end solution providers and act as a single point
of contact" for all Product, Process and Service related needs of the customer.
· The branches do business only within a 5 km radius. The customers' office or residence
has to be within the branch coverage area. This closer proximity of the customers to the
branches ensures better understanding of the local environment and immediate situation.
· The company participates actively in serving the community in and around the vicinity of
their branch. The interest of company in the locality extends beyond just a business
relationship. The company believes in participating in other aspects of development of the
community as well.
· The business envisages setting up branches with employees dealing directly with the
customers. This offering has elicited an enthusiastic response from customers as it gives
higher degree of transparency and faster value delivery.
· The facility set up for a customer is based on his risk profile, repayment capacity, as well
as proposed expansion plan. A Relationship Officer is assigned to address incremental
product needs, as well as for service requirements, through a process of continuous
engagement. The business strives to deliver lifelong financing support and regular facility
enhancement, based on business growth.
· Businesses are built on people, and the company hires relevant local talent to serve the
market, so that there is a connect between the employees and customers.
.The business wishes to bring a full service proposition encompassing loans and liabilities
to the small business owners. Besides the variety of loans, life insurance has been
introduced which will also be delivered through the branch based Relationship Officers.
· The business uses advanced technology tools to record customer history, and leverage
track record to enhance credit exposure in line with the customer business cycle. This
ensures continuous support through seasonal peaks.
· To find the preferences of customer regarding various types of loan: This objective
focused on the judgment of customer preferences regarding various types of loan provided
by Fullerton India such as Secured Loan, Unsecured loans and Home Equity Loan. The
result of this objective will provide the most preferable type of loan among various types of
loan provided by Fullerton India. So this objective will help the company to Focus on most
customer’s preferable area.
· To know the amount of loan generally availed by the respondents: This objective
include the study of the amount of loan which is generally borrowed by the customers.
· To study the Advertising effectiveness in creating awareness among the public: This
objective will help to judge the effectiveness of advertising strategy used by Fullerton India
to create the awareness among the potential customer about the products and services
offered by the company.
A Loan without security : A Personal Loan is not a secured loan (bank doesn’t ask for any
security or collateral) as against a Secured Loan where one is required to pledge a house or
other security to acquire a loan.
3. No specification about the end use of the loan amount : You are not required to
disclose the end use of the money borrowed, Banks are concerned about the fact that
whether the borrower is able to pay back the loan with interest before the due date or not
and they confirm this by checking the income, employment or business & other factors of
the borrower.
4. Big Loan amount : Personal Loan is a means to fulfill bigger loan requirement, you can
take a loan ranging from Rs. 50,000 to Rs. 20 lakh.
BASIS TO COMPARE PERSONAL LOAN
• Compare Interest Rates : Personal Loan can be compared primarily on the basis of
interest rates which vary across banks depending on your profile which is further linked to
your occupation, salary/income, credit history etc. The personal loan interest rate ranges
from 12% to 25%, you must go for that loan which is offering you at the minimum rate.
• Other Charges : You should also check on the other charges like processing fee, pre-
payment penalties and documentation fee because they increase the overall loan cost and
vary widely across banks.
• Evaluation of various Loan offers : You should first calculate the entire loan cost across
banks which constitutes the rate of interest & banks other charges. Evaluate offers keeping
the tenure of the loan constant & compare the rate of interest, EMIs & other charges. This
process will help you get the Best Loan deal.
• EMIs : EMI is the monthly equated installment which constitutes the principal amount
and the interest on the principal equally divided across each month in the loan tenure. Use
our EMI Calculator to compare EMIs across banks
• Tenure : Tenure is the time frame for the personal loan payments to be paid back to the
bank; it ranges from 1 year to 5 years. If you have a longer tenure you will end up paying
more interest & will have lower EMI, on the other hand shorter loan tenure will carry
higher EMIs & the interest amount is less. You must compare the loan offers by keeping the
tenure constant.
• Eligibility Check : Before taking a personal loan you must know the eligibility criteria’s
offered by various banks on the basis of which they offer loans and also compare personal
loan banks. Checking the eligibility parameters will help you find the best loan deal. Check
out your eligibility by various banks.
• Turnaround time : It becomes one of the most important factors in evaluation of your
loan application when you are in a dire need of money. Turnaround time is the time which
banks take in processing your loan application; you must check this parameter which varies
from bank to bank.
• Processing fee : It is a fee charged by banks from the borrowers to process their loan
application; it is normally between 1-2 percentage of the loan amount.
• Prepayment fee : Banks charge borrowers with a fee when they pay the loan EMIs before
the tenure which normally is between 2-5% of the outstanding loan amount.
• Late penalties : When there is a delay in paying your monthly EMIs of your loan, banks
charge a late payment fee with your EMIs. They normally range from 2-3% of the EMI.
• Cheque bounce charges : Banks charge between Rs. 250-500 for every bounced cheque
given for the payment of the loan amount owing to the insufficient funds in your account.
The documentation process in personal loan is very fast as against secured loans. Following
documents are required by financial institutions to process the loan application:
• Identity proof
• 3 to 6 months Bank statements
• Residence proof
• Salary slip
• Guarantors & their same set of documents
In case of self-employed banks require balance sheets, profit & loss account, partnership
deed & other mandatory documents etc.
PERSONAL LOAN CRITERIA BY VARIOUS BANKS
Banks offer Personal Loan to borrowers depending on various factors such as income,
employment, continuity of business so as to make sure that they repay the loan with interest
before the due date. The eligibility criterion of a Personal Loan is primarily based on the
work profile of a loan seeker which is broadly divided into the following two classes:
- Self-employed
- Salaried
In addition to the above factors banks also consider other aspects such as age, work
experience, existing relationship with the bank, repayment capacity etc.
To find your eligibility Criteria across various banks in accordance with the above
parameters; Deal4Loans has brought in the Eligibility Criteria Check for Personal Loan
seekers.
This a norm wherein the banks before giving Personal Loan checks the database of all loan
borrowers in the country by the Credit Information Bureau of India (CIBIL) which is called
the Cibil Score. If there has been a default in your loan payment; your loan application
would certainly be rejected. Your Cibil score ranges from 100 to 999, for instance if your
credit score is 100 then your loan application might be out rightly rejected. On other hand if
it is higher say 800, then your loan application would be processed faster & will be
rewarded with lower interest rates & discounts in processing fee & other charges. You can
improve your credit score by repaying your loan EMIs on time and always pay the
minimum payment on your credit card to avert from the bad credit score.
What are the fees and charges payable and when are they payable?
Apart from the rate of interest bank also do charge some fees which are of Usually two
types. Once when you are applying for the loan and once when you are preclosing the loan.
The fees when charged at the time of processing called as Processing Fees vary from 2-3%
of the loan amount. This could be reduced if you have the ability of bargaining. the second
charge is the prepayment penalty paid at the time of preclosure. This too varies from 2 –3
%. Similar to processing charges, you can also try to get this fees reduced.
Salaried
Pre-
Banks/Rates Processing
CAT A CAT B Others Payment
Fees
Charges
Fullerton
15.5% 21%-23% 21%-28% 4% 2%
India
15.5% 15.5%
(for 75,000 & above (for 75,000 &
salary), above salary),
16% 16% 2% if
(for 50,000-75,000 (for 50,000- salaried
salary), 75,000 salary), account in
HDFC Bank 22% 4%
17% 17% HDFC -
(for 35,000-50,000 (for 35,000- other wise
salary), 50,000 salary), 2.5%
19% 19%
(below 35,000 salary) (below 35,000
salary)
Only for Only for
Citibank Citibank
16%
account account
(more than 50000
holders: 17% holders: 17%
salary),
(for more than (for more than
16.5%
50000 salary), 50000 salary),
Citibank (for 35000-50000 5% 2%
18% 18%
salary),
(for 30000- (for 30000-
17.5%
50000 salary), 50000 salary),
(between 22000-
18.5% 18.5%
35000 salary)
(20000-30000 (20000-30000
salary) salary)
16%-20% 16%-20%
State Bank of 16%
(Guarantor (Guarantor N.A. 2%-3%
India/SBI (Guarantor required)
required) required)
Citi
16% 17%-18% 21% 5% 2%
Financial
16.75%- Rs250-
Andhra Bank 15.75%-16.75% N.A. N.A.
18.75% Rs1000/-
Axis Bank 16% 18% 19%-23% Nill 2%
Bank of
15% 15.5% N.A. N.A. 2%
Baroda
14.5% 1.50% of the
Corporation
(undertaking letter N.A. N.A. N.A. loan amount
Bank
required) or Rs.500/-
ICICI Bank N.A. N.A. N.A. N.A. N.A.
Standard
Chartered 15.5% - 22% 15.5% - 22% 15.5% - 22% 2%-5% 1%-2%
Bank
13.5%
13.5%
(against
13.5% (against
security of
(against security of security of
Syndicate IVP, NSC,
IVP, NSC, KVP, LIC IVP, NSC, N.A. N.A.
Bank KVP, LIC
policies, RBI Relief KVP, LIC
policies, RBI
Bonds) policies, RBI
Relief Bonds)
Relief Bonds)
16%-18% 16%-18%
United Bank 16%
12%(For 12%(For N.A. N.A.
Of India 12%(For pensioners)
pensioners) pensioners)
Vijaya Bank 16% N.A. N.A. N.A. N.A.
Where
CAT A refers to - Top 1000 companies
CAT B refers to - Multi National Companies( MNC's )
CAT C refers to - Small companies
Non Listed refers to - Smaller companies with 100 emloyees.
Loan Surrogates refers to - Any running loan from any bank
Income : If your Income is above a certain limit, Banks believe that your chances of not
paying are lesser as you have Income to pay. Income above 75 per month usually gets some
discounts from all personal loan Banks.
Your Company Status : If the company you are working with is a well known corporate,
the Banks feel that you are less likely to shift from your job and will result in lesser
defaults.
Credit and Payment History : Banks follows Cibil scores/rating before deciding giving
loans. If your payments for Credit Cards and Loans is not upto mark , you have the most
likely chance of being rejected for the loan or the Bank will give you at a much higher rate.
Relationship with Bank : The Bank where you have your Salary account/Savings account
is likely to pass on you to some special rate for your personal Loans or Processing fee.
Individuals Negotiating Skills : Based on your above points you can always ask Bank to
give you waivers on Rates, Fees Etc.
Personal Loan Interest Rates in India
Unlike a product like a movie ticket for which everyone is charged the same price, every
individual will be charged a different personal loan interest rate and be eligible for a
different loan amount based on their credit profile. The personal loan interest rates you will
be charged and the loan amount you will be eligible for will vary by bank, and will depend
upon factors like your income, your employer, your work experience and your residence
stability. Personal loan interest rates in India are usually quoted as monthly reducing
balance rates, however some lenders quote rates as annual reducing balance rates or as flat
rates. The simplest way of comparing different personal loan offers is to calculate the total
amount of money you will need to repay the bank in order to completely pay off your loan.
The below table is prepared by our market experts and lists the banks which
constitute 90% of personal loan market in India to help users save time in their search
for personal loan.
Trevor Richards (1996 ) Begins by defining the conversion model – a model used as a
marketing tool to identify commitment to different brands of goods or services. Argues that
there is a difference between committed and uncommitted customers which is not related to
service quality and that this makes it difficult to predict customer retention based solely on
these grounds. Other factors also drive commitment. Presents two short case studies based
on these assumptions. Kurt Matzler, Hans H. Hinterhuber, Franz Bailom, Elmar Sauerwein
(1996) How to delight your customers, Asks which product qualities are decisive for the
satisfaction of the customer and which features merely prevent dissatisfaction. Proposes
Kano’s model of customer satisfaction for answering these questions and for drawing
conclusions for the management of product development. In his model, Kano distinguishes
between three types of product requirement which influence customer satisfaction in
different ways when met: must-be requirements, which are basic criteria of a product - if
these requirements are not fulfilled, the customer will be extremely dissatisfied; one-
dimensional requirements, where customer satisfaction is proportional to the level of
fulfillment, the higher the customer’s satisfaction and vice versa; and attractive
requirements, which are the product criteria which have the greatest influence on how
satisfied a customer will be with a given product. Attractive requirements are neither
explicitly expressed nor expected by the customer. Antony Beckett, Paul Hewer, Barry
Howcroft (2000) An exposition of consumer behaviour in the financial services industry,
Deregulation and the emergence of new forms of technology have created highly
competitive market conditions which have had a critical impact upon consumer behaviour.
Bank providers must, therefore, attempt to better understand their customers in an attempt
not only to anticipate but also to influence and determine consumer buying behaviour. The
paper accordingly presents and develops a model which attempts to articulate and classify
consumer behaviour in the purchasing of financial products and services. The theoretical
insights generated by this model are then used to examine qualitative research data gained
from focus group discussions on consumers’ attitudes to their financial providers and their
financial products. Finally, these findings are examined for the potential insights they
provide to bank
providers attempting to identify appropriate strategies which are conducive to increased
customer retention and profitability. Randi Priluck (2003) Relationship marketing can
mitigate product and service failures, Relationship marketing is beneficial to firms because
it can foster customer loyalty and re-patronage behavior. Consumers engaged in relational
exchanges are more satisfied than those in discrete transactions because
of the ease and psychological comfort of purchasing from a familiar company. This
research investigates the power of relationship marketing to mitigate in two situations. One
exposes consumers to poor product performance and examines their levels of trust,
commitment and satisfaction. The second presents a product failure that is followed by a
lapse in service recovery and measures satisfaction and exit behavior. The findings of both
studies suggest that relationships make up for increasingly strong negative encounters,
providing a level of insulation for the marketer. Implications for service firms are discussed.
Adam Lindgreen (2004) Few published empirical studies have examined the design,
implementation, and monitoring of customer relationship management (CRM) programmes
at a practical level. The article develops a single embedded case study on Dagbladet Børsen
(http://www.borsen.dk), the largest publisher of business-related materials in Scandinavia.
The article first introduces the reader to the philosophy behind CRM. Following that, it
considers key areas of a four-year long CRM programme and offer insights into the
procedure that has been developed by SJP (http://www.sjp.dk), the consulting firm that was
brought into assist. The procedure is organized around eight areas: commitment of senior
management, situation report, analysis, strategy formulation, implementation, management
development, employee involvement, and evaluation of loyaltybuilding processes. Over the
four-year long CRM programme, Dagbladet Børsen increased its newspaper circulation by
40 per cent and advertising revenue by 50 per cent, while total revenue more than doubled.
Ka-shing Woo, Henry K.Y. Fock (2004 ) The axiom that “the customer is always right” is
no longer valid when companies realize that some of their customers are not right at all.
Paying too much attention to these so-called “wrong” customers may jeopardize a
company's survival and profitability. Right customers have to be retained, “at-risk” right
customers have to be recovered, and wrong customers have to be divested. This study
attempts to operationalize the concept of customer “rightness” and “wrongness” in terms of
different configurations of attribute satisfaction and overall satisfaction. Based on the result
of a discriminant analysis of satisfaction survey data, customers with different
configurations of attribute satisfaction and overall satisfaction are re-examined in terms of
switching intention, behavioral patterns and demographic characteristics in order to
highlight any significant descriptor. Susan E. Rau (2005) Building great products can be a
reality for any company that takes the time and effort to create and execute the linkages
between: winning strategy; the role of products and services; the product building blocks;
and, linkages to customer needs. In fact, our research and work with clients suggests that a
lack of alignment of these factors is the number one cause for the poor performance of
many new products. This article defines for the reader the four winning strategy choices a
company has – Product Leader, Distribution Giant, Innovation Superstar and Customer
Lover and how each of these models puts a different emphasis on products and services.
Once a company has selected a winning strategy, executing that strategy successfully
requires adherence to the business model, including aligning product and services, customer
imperatives and financial realities to that winning strategy model. Losing focus and drifting
away from the chosen strategy or interspersing, for example, the product priorities from one
winning strategy with the customer imperatives from another is a recipe for lackluster
earnings and poor stock performance. Readers will learn how to outsmart the competition
and build products that really win in the marketplace.
ANALYSIS OF DATA
This research is based on primary data i.e. collected through primary and secondary
sources sources. The primary data is collected with the help of questionnaire survey and
secondary data is collected from newspapers, internet and magazines. Therefore, the
analysis of data is categorised under following two sub categories that are:-
• Analysis of Primary Data
• Analysis of secondary data
The analysis of primary data includes the analysis of data collected through questionnaire.
The analysis of Primary Data is as follow:-
PARAMETERS SELECTED FOR COLLECTING PRIMARY DATA:
The respondent of research comprises of 30% of 18-28 years, 26% of 28-38 years, 24%
of 38-50 years and 20% of more than 50 years. This classification of age group is
required to know the perception of person for taking loan at different stage of life.
Generally Fullerton India provides loan to salaried individuals and new entrepreneurs,
therefore our sample size is consists 56% of respondents lies between the age group of
18 to 38years. After setting the age group composition for survey the next parameter for
differentiating respondent is Income level.
1. Annual Income of the Respondent
Second classification of respondent is based on the basis of their annual income. This
classification is done to know that mostly which income level people have more demand for
loan. This research is targeted to know the demand of loan by salaried individual and small
entrepreneurs, therefore the sample size consists of 15% Lower Income level and 40%
middle income level for judging the demand of salaried individual and to judge the demand
of small entrepreneurs the sample size consists of 35% upper middle income level and 10%
that are having annual income more than 5 lakh.
P e rc e n t a g e
The third important consideration which helps to identify that whether the
respondent is salaried individual or small entrepreneurs is occupation. The
occupation comprises of Government Employee, private employee that fall into salaried
individual category and third component of occupation is Businessman which indicate
small entrepreneurs. The weight provided to salaried individual i.e. to Government and
private employee is 55% because Fullerton offered more product to this category and For
small entrepreneurs the weight assigned is 45% , because this weight can give justifiable
result to divide the demand of loan on the basis of occupation.
From which source you knew about the various schemes of Fullerton
India?
This question is asked in order to know the effectiveness of the advertisement strategy
adopted by Fullerton India. The result found by the survey shows that most of the customer
knew about the various loan schemes through news paper & internet. Therefore company
can make more use of the news paper and internet to increase its customer base. Secondly
the company also getting the benefit of its existing customer to advertise its product,
because 24% of customer knew about the schemes of Fullerton India through their friends
who had taken loan from Fullerton India.
Fullerton India is not making use of Television media frequently because it is very costly,
therefore resultantly it contributed only 12% in creating the awareness among the customer
regarding various schemes of Fullerton India.
2. Which type of loan you availed from Fullerton India?
The most preferred loan by customer is secured loan. This loan is easily available to
customer because there is less risk faced by Fullerton in giving this type of loan as it is
secured by some assets of customer. Second more preferred loan than secured loan is Home
loan which is availed by 28% of customer other loan are availed by18% and 12% of sample
size.
3. Through which scheme of Fullerton India you availed loan?
The Fullerton India offers different types of loans under two main scheme that are Parivaar
and Vyapaar. The Parivaar scheme is for salaried individual where as Vyapaar scheme
available for small entrepreneurs. The result of survey shows that most of customer availed
loan under parivaar scheme i.e 62% as compare to Vyapaar. Therefore it shows that, the
salaried individual are more important for company, so the company is require to focus on
this core product and simultaneously it require to improve the promotion of its Vyapaar
scheme to attract more customers.
7. What is your amount of loan?
0 - 2,00,000 28%
2,00,000-5,00,000 45%
10,00,000 or more 5%
This question is asked to know that generally how much amount of loan is availedby the
customer. The result of survey shows that 45% customer availed 2 lakh to 5lakh loan, 32%
availed 5 to 10 lakh, 28% availed loan up to Rs 2lakh and there are very less customer who
availed loan more than 10 lakh. So the Fullerton India is famous for medium loan, but there
are very less number of customer for large amount loan. Therefore the company needs to
focus on the schemes for large amount loan to become famous in this segment also.
The profit of the company depends on the repayment period, because if the
repayment period is long than customer will pay interest for long period so it
beneficial for company to issue loan for long repayment period. In the survey itb was found
that 19% customer availed loan for maturity period less than 2 years, 43% of customer
availed loan for 2 to 5 years, 28% availed for 5 to 10 years and only 10 % availed for the
repayment period more than 10years. The most preferred repayment period is 2 to 5 years.
The company will earn more sustainable profit for long period if it increases the customer
who avail loan for long maturity period, therefore the company need to formulate some
attractive scheme to attract the customer towards long repayment period loan.
9. Are you satisfied with the rate of interest charge by Fullerton India?
Yes No
67% 33%
The Fullerton India charging different rate of interest for different type of loan. The rate of
interest of unsecured loan is quite high because of risky nature whereas secured loan is
available at less rate of interest. Therefore there are some customers who are not satisfied
with the rate of interest. The sample size consists of 67% customers who are satisfied with
the rate of interest charging by Fullerton India and only 33% are unsatisfied.
10. What are the main factors which persuade you to avail loan
from Fullerton India?
Others 9%
This question is considered to know that which service of Fullerton India attract more and
more customer. The result shows that an attractive rate of interest is the most important
factor responsible for attracting customer toward Fullerton India, then easy documentation,
easy repayment and quick processing is also work as supplement to attract customer for
availing loan from Fullerton India. Only 9% customers are fall in the category of others
who availed loan due to the references of some person, such as friends and relatives.
11. What grade you will assign to the services of Fullerton India?
Grades excellent Very good Good Fair Poor
percentage 12% 47% 31% 6% 4%
This result shows the perception of different customer toward services of Fullerton India.
The 12 % customer thinks that the service delivery of Fullerton India is excellent whereas
47% thinks its service delivery is very good, 31% thinks that services delivery is only good
and 6% thinks that the service delivery of Fullerton India is fair, but as nobody can satisfy
everyone at same time, so this is same for Fullerton India, 4%customer are not satisfied
with the services of Fullerton India.
FINDINGS OF THE STUDY
From the above study it is clear that 62% of the respondents have taken loan under
parivaar scheme and only 38% taken loan under Vaypaar scheme. Therefore it shows that
Fullerton India is favourable in short term loan segment which is provided by Fullerton
India under Parivar scheme and especially for salaried individual. From the above study it is
clear that majority of the respondents got aware of different loan scheme provided by
Fullerton India through News paper. Therefore company is require to advertise its schemes
more frequently in News paper which will help company in getting more new
customers.
The above study depicts that most of the respondents availed loan of amount ranging
from Rs.2-5- Lakh. Therefore, if Fullerton India introduce more scheme under this range to
meet the different demand of customers.
The above study depicts that mostly the respondents preferred the loan having repayment
period from 2-5. Therefore the company needs to add some more benefits to the long term
period loan so that the
demand of long term loan will increase which increase the profit of company, because as
the repayment period is long than the source of income (Interest) is sustain for long period.
Most of the people are satisfied with the rate of interest charged and by Fullerton India.
Fullerton India mostly disbursed loan as secured loan, this will provide the safety and it
will avoid the increasing number of Non- performing asset and bad debts.
Customers are the main source of new ideas, and thus their suggestions are vital for every
Company. From the above figure it is clear that majority of the respondents are satisfied
with the services of their present bank so they do not want any change in the rate of interest
and services, but no one can satisfy everyone at same time, Fullerton having respondents
who are not satisfied with rate of interest and services of Fullerton India.
SUGGESTIONS
The following suggestions have been formulated on the basis of above study. These set of
suggestions might help the Fullerton India to improve the quality of service regarding loan
provisions and simultaneously these suggestions help the Fullerton India to tackle the
competition prevailing in the market, thereby achieving success in the future.
Firstly Fullerton India should create awareness among the common public about the
various loan schemes of they are providing..
In order to create awareness regarding the loan schemes an electronic medium of media
can put to use to advertise about the schemes and services provided by Fullerton India. This
would help to change the attitude of the people regarding the Fullerton India.
The interest rates should be regularly revised in order to attract more and more customer.
Some new plans should be introduced regularly to cater the special needs of customer
which provides them more offerings and benefits.
New strategies should be made by the company which enables them to face the
competition with other private leading Non Banking Financial companies.
The company needs to focus more on providing value added services to its customer.
This will create Brand loyalty among customer which indirectly attract more and more
customer because a satisfied customer will always bring two more new customers.
· The management of company should be more efficient which enables in quick processing
of the task regarding loans disbursement and loan collection, This will enable efficiency in
the working capital cycle of the company.
· There should be customer relationship management concept in the company which help
the company to understand the special need of customer. Accordingly company formulate
schemes should be maintained.
· The Fullerton India need to concentrate on new target market by expanding its business
through introducing new loan schemes and services. Currently the company is proving
loans under main two category i.e Parivaar and vyapaar so, it looks limited. Therefore the
company needs to introduce new schemes to enter in to new target market.
REFERENCE
• www.fullertonindia.com/
• www.fullertonindia.com/index.php?
• www.google.com
• www.ask.com
• www.mywebsearch.com
Questionnaire
a. Government Employee □
b. Private Employee □
c. Businessman □
4. From which source you knew about the various schemes of Fullerton
India?
a. News Paper □ b. Television Media □
c. Internet □ d. Friends □
5. Which type of loan you availed from Fullerton India?
a. Parivaar □ b. Vyapaar □
a. 0 - 2,00,000 □ b. 2,00,000-5,00,000 □
9. Are you satisfied with the rate of interest charge by Fullerton India?
a. Yes □ b. No □
10. What are the main factors which persuade you to avail loan
from Fullerton India?
e. Others □
11. What grade you will assign to the services of Fullerton India?
c. Good □ d. Fair □
e. Poor □
THANKYOU
TABLE OF CONTENT
Company Certificate
Guide Certificate
Acknowledgement
Chapter -6 Suggestion
References
Questionnaire