Dept.

Of Management and Business Administration

ALIAH UNIVERSITY
A study on
BANK LOANS

Submitted towards partial fulfillment to obtain the Five year Integrated

MBA Degree from Aliah University, Kolkata

MD FAIZAN AYUB

MBA 205034
3RD YEAR
6TH SEMESTER

Under the supervision of

MISS ZARNIGAH PARWEZ

 ACKNOWLEDGEMENT

I would like to express my deep gratitude to Asst. Professor Aliah University Zarnigah Parwez for
my research supervisors, for their patient guidance, enthusiastic encouragement, her advice and
assistance in keeping my progress on schedule and useful critiques of this research work.

I would also like to thank our HOD Parveen Ahmed Alam for giving me the opportunity to work on
this amazing concept of bank loans.

It was an amazing experience to work on this research project of bank loans.

MD. FAIZAN AYUB

MBA 205034
 DECLARATION

I hereby declare that the project Work with the title “BANK LOANS” submitted by me for the
partial fulfilment of BBA, is my original work and has not been submitted earlier to any other
university for the fulfilment of the requirement for any course of study. I also declare that no
chapter of this manuscript in whole or in part has been incorporated in this report from any earlier
work done by others or by me. However, extracts of any literature which has been used for this
report have been duly acknowledged providing details of such literature in the references.

NAME: MD FAIZAN AYUB

ROLL NO: MBA 205034

Miss. Zarnigah Parwez Residence:

Asst. Professor Action Area II,Plot no:II A/27

Department of Management New town, Kolkata,700156 ,
And Business Administration Aliah University Girls Hostel
Aliah University Mobile :9830973930
New town, Kolkata Email ID:
West Bengal, 700156 zarnigahparwez@gmail.com

Certification of the Guide

This is to certify that Md Faizan Ayub is a registered MBA student (Roll no. MBA205034) of the
department of Management and Business Administration, Aliah University and he has
completed his project work (UGMBDS23) under my supervision. His project work title is “Bank
Loans”.

Signature of guide…………….………………….
 CONTENTS

1. Introduction to Bank loan

2. History of bank loans
3. Documents required for applying a bank loan
4. Steps for taking bank loan.
5. Objective of the Research Study
6. Methodology
7. Discussing the results of survey
8. Findings
9. Conclusion
10. Questionnaire
11. References
 1.BANK LOAN

INTRODUCTION- The term loan refers to a type of credit vehicle in which a sum of
money is lent to another party in exchange for future repayment of the value or
principal amount. In many cases, the lender also adds interest or finance charges to the
principal value which the borrower must repay in addition to the principal balance.
Loans may be for a specific, one-time amount, or they may be available as an open-
ended line of credit to a specified limit. Loans come in many different forms including
secured, unsecured, commercial, and personal loans.

2. HISTORY OF BANK LOANS

Banking originated in ancient Assyria, India, and Sumeria, where merchants provided grain
loans to farmers and traders. In ancient Greece and Rome, temple-based lenders provided
financial services such as loans, deposits, and currency exchange. Archaeological evidence
suggests money lending existed in ancient China and India. The modern banking system
emerged in medieval and Renaissance Italy, with families like the Bardi and Peruzzi dominating
the industry in cities such as Florence, Venice, and Genoa. The Medici Bank, founded in 1397 by
Giovanni Medici, is a famous Italian bank. Banca Monte dei Paschi di Siena is the oldest
continuously operating bank, established in 1472. Banking spread and innovated in Amsterdam
during the Dutch Republic in the 17th century and in London since the 18th century. The 20th
century brought major changes to banking operations with advancements in telecommunications
and computing, resulting in larger and more geographically dispersed banks. The 2007-2008
financial crisis caused many bank failures, including some of the world's largest, and sparked
debates about bank regulation.
 3. DOCUMENTS REQUIRED FOR LOAN APPLICATION IN INDIA
1. Identity proof- Accepted documents include passport copy, voter ID card, driving license
or Aadhar card.
2. Address proof- Aadhar card, driving license, voter ID, or passport copy work as address
proof too.
3. Bank statements for the last three months.

4. DOCUMENTS TAKING LOAN:

STEP 1: GATHERING AND SUBMITTING APPLICATION & REQUIRED

DOCUMENTATIONS
To get a loan, you must fill out an application and provide the necessary documents. The
required loan documents vary based on loan type, operation size, and complexity. Smaller loans
require fewer documents. Applicants typically need to provide personal financial statements,
authorization to release authorization, 2-3 years of financial statements or tax returns, and legal
entity document copies. Once the lender receives the application and required documents, the
loan moves to the next step: underwriting.

STEP 2: LOAN UNDERWRITING

During the underwriting stage of a loan, the analyst evaluates it using the Five Cs of Credit:
Character, Capital, Capacity, Collateral, and Conditions. When evaluating, we consider credit
scores, repayment history, cash reserves, cash flow/earnings, down payment, economic and
industry conditions, and collateral. The time for loan underwriting varies based on request
complexity. Involving more parties or entities increases the time to gather information and reach
a decision.
STEP 3: DECISION & PRE-CLOSING
Once a loan request decision is made, applicants receive a prompt response. Once approved, the
applicant is informed of the loan's terms and conditions. Once both the applicant and lender
agree to the terms and conditions, the next step is to obtain an appraisal, survey, title insurance,
loan documents, and any other necessary items. Once received, the items are reviewed to ensure
loan approval requirements are met. If everything is in order, then closing will be scheduled.

STEP 4: CLOSING

Upon reaching this stage, the apprehension and strain linked with waiting and collecting
necessary materials are essentially done. The finalization of a loan commonly takes place at the
lender's office, the title insurance company, or the office of a legal professional. Upon
completion of the transaction, the necessary loan documents and any other relevant documents
are signed, and the funds are disbursed in accordance with the approval. It is customary for the
lender and the applicant to receive copies of all signed documents

STEP 5: POST CLOSING

Upon completion of the loan transaction, the process is typically concluded, and the borrower
will receive a notification containing pertinent information. This communication will provide
details regarding the academic institution, guidelines for accessing your account, and pertinent
information regarding the timing and location for submitting payments. Upon completion of the
transaction, you will be provided with post-closing documents that contain valuable information
regarding the advantages of being a member of a cooperative, the benefits of patronage, and how
it affects your rate.
 6. OBJECTIVE OF THE RESEARCH STUDY

The main objectives of this research study are as follows:

 Gaining knowledge about the history of bank loans in the world
 Conducting research for knowing the current scenario of loans in our surrounding.
 Understanding which bank is the most trustworthy among peoples and why.
 What population is interested in taking loans.
 Why people are choosing an specific bank what’s the reason.

7. METHODOLOGY

The methodology which was followed to make this assignment successful was Survey Method
which was a person to person survey with help of Google forms
Place of the survey: Kolkata
Reason for choosing Kolkata: As Kolkata is my home city so choosing Kolkata was very
convenient for me.
Total Respondents: Total no. of respondents for this research were 108.
8. DISCUSSING THE QUESTIONNAIRE BASED ON THE SURVEY DONE ON 108
PERSONS
1.GENDER

GENDER PERCENTAGE % NO OF RESPONDENTS

MALE 42.6% 60
FEMALE 55.6% 46
OTHERS 1.8% 2
 TOTAL 100% 108

OBSERVATION: Out of 108 observations 55.6 percent are females,42.6 percent are males and
1.8 percent are others respectively.

2.AGE GROUP

AGE GROUP PERCENTAGE% NO OF RESPONDENTS

18-25 77.8% 84
25-30 13.9% 15
30-35 3.7% 4
35-40 0.9% 1
40-45 3.7% 4
TOTAL 100% 108

OBSERVATION: The above table states that the most no. of respondents are of the age group
of 18-25 which is 77.8% followed by 25-30 which is 13.9% then 30-35 and 40-45 are 3.7% and
lastly 0.9% 35-40 respectively.

3.OCCUPATION

OCCUPATION PERCENTAGE NO OF RESPONDENTS

STUDENT 72.2% 78
BUSINESSMAN 6.5% 7
TEACHER 3.7% 4
PROFESSIONAL 7.4% 8
SERVICE 7.4% 8
HOUSEWIFE 3% 3
TOTAL 100% 100

OBSERVATIONS: As shown in the table above the most no. Of respondents are students
(72.2%) followed by professional (7.4%) and service sector (7.4) followed by businessman
(6.5%), teacher (3.7) and housewife (3%).

4. MONTHLY INCOME
 OBSERVATIONS: As the above data shows that majority of the respondents have their
income around 5000-10000 followed by greater than 30000 and 15000-20000 followed by
10000-15000 then 20000-25000 and lastly 25000-30000.

5. MOST TRUSTWORTHY BANK

OBSERVATION: It can be clearly seen most of the respondents trust State Bank of India
for loans followed by HDFC Bank and then others.

6. HAVE YOU EVER TAKEN A LOAN?

 OBSERVATION: It can be clearly seen that most of the respondents have never taken a loan.
7. IF I TAKEN A LOAN THEN FROM WHICH BANK?

OBSERVATION: As per the figure above it can be clearly seen that most of the loan takers
have taken from HDFC Bank and State Bank of India (37.3 + 25.5) % respectively.
 8. REASONS FOR CHOOSING HDFC AND STATE BANK OF INDIA

OBSERVATION: From the above graph it is clearly seen that most of the respondents prefer
safety over other factors.

9. How satisfied do you feel with your bank loan experience?

OBSERVATION: Above figure states that that the loan experience was neutral neither good nor
bad.

10. How confident are you in the security of your bank loan provider?

OBSERVATION: Almost 35% of the respondents are very confident about the security of their
documents and personal information over the bank.
 9.FINDINGS
1. Loans are common among college students they all take loans for some purpose.

2. Most of the peoples trust SBI (State bank of India) for loans and other purposes as well.

3.
4. Around 35% of the respondents were neither satisfied nor unsatisfied with the loan
procedure of the bank.
5.
6. Still a part of society is scared of taking bank loans.

7. So many peoples don’t take bank loans because the procedure is pretty complex for
normal person who doesn’t have basic education.
 10. CONCLUSION
While collecting data from the respondents I came to know about so many things as an
individual I learnt so many new things a about the banking system in India.

1. During the research for the assignment, I came to know about how a bank loan is
provided.

2. Background of the bank loans how and where it started a brief history.

3. How loans have influenced society and students .

4. Which bank is the most trusted bank in the world nowadays. It was an interesting
assignment.
5. It gave me a good understanding about loans and all.

Thus, a Project Report for Bank Loan is necessary for availing funds and loans from financial
institutions and banks for the needs business fundings.
 12. QUESTIONNAIRE

1. AGE GROUP

2. GENDER

3. OCCUPATION

4. WHICH BANK DO YOU TRUST THE MOST?

5. MONTHLY INCOME

6. HAVE YOU EVER TAKEN A LOAN?

7. IF YES THEN FROM WHCH BANK AND WHY?

8. WHY? (REASONS)

9. HOW CONFIDENT ARE YOU IN THE SECURITY OF YOUR BANK LOAN

10. HOW MUCH DO YOU FEEL SATISFIED ABOUT YOUR BANK LOAN EXPERIENCE?
 REFRENCES

1. Open-End Credit: Definition, How It Works, vs. Closed-End Credit (investopedia.com)

2. Documents – Know the Documents Required for Personal Loan | HDFC Bank

3. History of Loans: Business Lending Through the Ages (become.co)

4. WIKI