Professional Documents
Culture Documents
Sahil Ghanekar Specialisation
Sahil Ghanekar Specialisation
Project report
on
Specialization
“A Study on Loans & Advances” at The Shriram Finance LTD.
A Project Submitted to University of Mumbai
in Partial Fulfilment of Semester IV
For the award of
Master of Management Studies
in
Finance
By
Ghanekar Sahil Arjun
CERTIFICATE
This is to certify that Mr. Sahil Arjun Ghanekar is a Bonafide student of our Institute and the dissertation
entitled “A Study on Loans & Advances” at The Shriram Finance LTD. submitted by him
is in partial fulfilment of the semester IV for the Degree of MASTER OF MANAGEMENT STUDIES in
Finance by the University of Mumbai during the Academic Year 2023-24.
GUIDE’S CERTIFICATE
This is to certify that the Dissertation entitled “An Analysis of Purchase Behavior of Consumers
Buying Branded Shoes”. is a Bonafide record of independent research work done by Mr. Sahil Arjun
Ghanekar Roll. No. 2022014 under my supervision during Academic Year 2023-24, submitted to the
University of Mumbai in partial fulfilment of Semester IV for the Degree of MASTER OF
MANAGEMENT STUDIES in Finance.
I Mr. Sahil Arjun Ghanekar hereby declare that the dissertation “A Study on Loans & Advances” at
The Shriram Finance LTD. submitted to the University of Mumbai in partial fulfilment of the Semester
IV for the Degree of MASTER OF MANAGEMENT STUDIES in Finance is an original work and that
the dissertation has not previously formed the basis for the award of any other Degree, Diploma,
4. Title of the Dissertation : “A Study on Loans & Advances” at The Shriram Finance LTD.
5. Evaluation :
Total 100
I take this opportunity to express my gratitude to the people who have been instrumental in the successful
completion of this project. Apart from my efforts, the success of my project depends largely on the
encouragement and guidelines of many others.
I would thank the Management of the Institute for providing valuable resources viz. Library, Computers
with Internet facility which is an essential pre-requisite in the successful completion of the project.
I would like to show my greatest appreciation to Prof. Minal Patil, I can’t thank enough for his/her
tremendous support and help. I feel motivated and encouraged to execute my project under his/her
mentorship. Without his/her guidance this project would not have been materialized.
The support received from all the respondents was vital for the success of the project. I am grateful for their
time and efforts. Last but not least, I wish to thank my parents Arjun Ghanekar (Father) and Arati
Ghanekar (Mother) for their continuous motivation.
.
INDEX
Serial no. Particulars Page no.
2 Introduction 3-4
5 Objectives 11-12
9 Data Analysis
& 26-40
Interpretation
10 Findings 41-42
11 Suggestions 43-44
12 Conclusion 45-46
13 Bibiliography 47-48
LOANS AND ADVANCES
CHAPTER 1
EXECUTIVE SUMMARY
Page 1
LOANS AND ADVANCES
Executive Summary
The project is based on “LOANS AND ADVANCES”. The main objective behind the
study to know the how the company deal with loans. This was came to know by
studying the loans and advances. The project begins with some general information
pertaining to SHRIRAM FINANCE CO. LTD. including background of the bank,
vision mission and social responsibilities. This project include the types of loans the
bank provides to peoples and how they deal with it in the tenure or duration Based on
this analysis the information is plotted using graphs. This gives some basic
understanding of loans given by the bank and the repayment of the amount.
I would like to say that I had a very good experience and exposure in
working with such an esteemed private corporate. This experience has added to my
knowledge and would make sure that utilize it to its fullest.
Page 2
LOANS AND ADVANCES
CHAPTER 2
INTRODUCTION
Page 3
LOANS AND ADVANCES
Page 4
LOANS AND ADVANCES
CHAPTER 3
INDUSTRY PROFILE
Page 5
LOANS AND ADVANCES
INDUSTY PROFILE
Sriram is a pioneer in the NBFC Industry with a strong rural presence. The Shriram finance
limited is one of the India’s leading NBFC’s with 7.54 million (as an June 30, 2023) private
and corporate lender across India.
Type Conglomerate
Shriram Finance
Subsidiaries
Shriram Housing Finance
Shriram Life Insurance
Shriram General Insurance
Shriram Insight
Shriram Fortune
Shriram AMC
Shriram Wealth
Shriram Properties
Website https://www.shriramcapital.com
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LOANS AND ADVANCES
Shriram Group:
Shriram finance – Shriram Finance is the flagship company of group which provides
financial services such as commercial vehicle finance, passenger vehicle finance, SME finance and
retail lending (personal loan, gold loans and two-wheeler loans.
Shriram Life Insurance - Shriram life insurance is the life insurance arm of the group,
and joint venture between Shriram group and South African company Sanlam.
Shriram Financial Ventures- Shriram financial ventures is the holding company and
promoter of Shriram group’s financial services and insurance businesses. It is jointly owned of
Shriram ownership trust (SOT) and Sanlam group.
Shriram Fortune – Shriram fortune is the financial services distribution arm of the
group.
Page 7
LOANS AND ADVANCES
CHAPTER 4
COMPANY PROFILE
Page 8
LOANS AND ADVANCES
Page 9
LOANS AND ADVANCES
YEARS DIRECTORS
Page 10
LOANS AND ADVANCES
CHAPTER 5
OBJECTIVES
Page 11
LOANS AND ADVANCES
From the topic of the project report Loans and Advances provided by
Shriram Finance Co. Ltd. The main objective behind choosing the topic is to help
the borrowers and the society to know about the loans and advances by Shriram
Finance Co. and how these loans been recovered. It will become helpful to them
while applying for a loan.
To access the different interest rate on the different loans schemes provided by the
company.
To study the different loans provided by company.
To study the growth of loans and advances
To study the financial performance of the company.
To know the awareness level of the lenders towords Shriram Finance Company.
Page 12
LOANS AND ADVANCES
CHAPTER 6
REVIEW OF LITERATURE
Page 13
LOANS AND ADVANCES
Review of literature
Explore studies on loans & advances within the financial sectors. Look
for articles or research papers that analyse how lender interact with financial brands. Finds
literature on loans & advances in financial services.
Search for materials that discuss the importance of trust and credibility
in finial institution & how it work in Loans & advances. Check for case studies or reports
specifically related to Shriram Finance LTD. Highlighting its market positioning lender
feedback or any published company reports discussing Loans & Advances.
Arpita Sharma’s (2014) – View that Agriculture Financing by
corporative societies have been important source of credit to farmers farming was carried out
in a traditional way as the credit needs of the farmers where limited & was met by money
lenders relatives & friends & too some extent by taccavi loans from government.
Amia Kumar Mohapatra (2014) -view that co-operative credit society
have been play a vital role in meeting the credit needs of rural farmer & artificial protecting
from the clutches of money lenders.
Abhijeet Sarkar’s (2014)- study reveal that most important pre request
for significant progress in the agricultural sector was the availability of credit through
institutional or non-institutional sources leading to the higher investment in agriculture.
Page 14
LOANS AND ADVANCES
CHAPTER 7
RESEARCH METHODOLOGY
Page 15
LOANS AND ADVANCES
RESEARCH DESIGN
A research design is simply the structure of plan for a study that guides the collection
and analysis of data. The study is considered so; find the financial performance and financial
position of the bank in order to evaluate its present situation and future growth prospects. The
study design is descriptive in nature.
DATA COLLECTION
PRIMARY DATA: - The data is gathered through primary sources. The data is collected
from the past and present activities, performance of the bank, books, research newspapers, etc.
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LOANS AND ADVANCES
SECONDARY DATA: The data is gathered from various websites, annual reports,
journals, different books, different kinds of reports and articles related to study.
Sample size: 50
Sampling techniques:
To study the project, a simple random sampling technique is used.
Page 17
LOANS AND ADVANCES
CHAPTER 8
DATA COLLECTION
Page 18
LOANS AND ADVANCES
What is Loan?
A financial instrument in which one party borrows money from another such as
mortgage credit card, debit, or personal line of credit.
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.
Components of a Loan
There are several important terms that determine the size of a loan and how
quickly the borrower can pay it back:
- Loan Term: The amount of time that the borrower has to repay the loan.
- Interest Rate: The rate at which the amount of money owed increases, usually
expressed in terms of an annual percentage rate (APR).
- Loan Payments: The amount of money that must be paid every month or week in
order to satisfy the terms of the loan. Based on the principal, loan term, and interest rate, this
can be determined from an amortization table.
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LOANS AND ADVANCES
Types of loan
Personal Loan
Gold Loan
Two-wheeler Loan
Personal Loan
A Personal Loan is a loan that does not require collateral or security and is offered
with minimal documentation you can use the funds from this loan for any
legitimate financial need like any other loan, you must repay it accordance to the
agreed terms with the bank.
A Personal loan is a form of credit extended to individuals by financial
institutions. Unlike specific-purpose loans (like auto or home loans), personal loans offers
flexibility as borrowers can use the funds for various needs, including home renovations,
medical expenses weddings or unexpected emergencies.
• Documents:
RS. 15 Lakhs
Page 20
LOANS AND ADVANCES
Business Loan
• Quick facts
Tenure 12 to 60 months
Page 21
LOANS AND ADVANCES
- Loan up to Rs.30 lakhs – Manage all your business expenses with loan amount
ranging up to Rs.30 Lakhs.
- No Collateral Needed – Get financial support you need without the stress of
collateral.
- Flexible Loan Tenure – choose from a range of flexible tenure options starting from 12 to
60 months.
- Quick loan & Disbursals – An easy and quick loan approval process to make sure your
business needs are met on time.
- Hassle – free online process – Get your loan approved online in a few simple hassle- free
steps.
- Online EMI Calculator – With our easy-to-use online EMI Calculator, calculate
monthly instalments accurately.
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LOANS AND ADVANCES
Gold Loan
Gold Loan is a secured loan taken by the borrower from a lender by pledging
their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is
a certain percentage of the gold, typically up to 80% based on the current market value and
quality of gold.
The Interest rate starts from 11.4% P.a and you can choose loan tenure starting
from 1 month up to 12 months.
Process
- Open UNO application
- Check lender is existing or not
- If no then create lender Id
- KYC documents (Aadhar card, Pan card, Light bill or Ration card, 3
months bank statements)
- Thumb
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LOANS AND ADVANCES
Two-Wheeler Loan
Such loans especially design to ensure that the lender is able to buy their dream bike
or scooter. A two-wheeler Loan is a loan provided to individuals to purchase their dream two-
wheeler in attractive payment options.
10.50%
• Residence proof
Applicants must have resided at least one year at the current address.
Page 24
LOANS AND ADVANCES
What is Advances?
Cash credit
Overdrafts
Working capital finance
Page 25
LOANS AND ADVANCES
CHAPTER 9
DATA ANALYSIS AND INTERPRETATION
Page 26
LOANS AND ADVANCES
Table no.1
Particulars No. of respondents Percentage
Personal loan 29 58%
Business loan 3 6%
Gold loan 6 12%
Two-wheeler loan 6 12%
others 6 12%
Chart no. 1
12%
12%
12% 58%
6%
Interpretation:
The above graph shows that 58% people take personal loan, 12% people take gold
loan, two-wheeler loan and other loan each. 6% people take business loan, by Shriram
finance limited.
It shows that more lenders take personal loan rendered by Shriram finance.
limited.
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LOANS AND ADVANCES
2. How do you feel about loan services rendered by Shriram Finance Co. Ltd?
Table no.2
Particulars No. of respondents Percentage
Satisfied 41 82%
Highly satisfied 6 12%
Unsatisfied 3 6%
Chart no. 2
6%
12%
82%
Interpretation:
The above graph shows that 82% people are satisfied and 12% people are Highly
Satisfied and 6% people are unsatisfied about the loan services rendered by Shriram
Finance Co.
It shows that more lenders are satisfied with loan services rendered by Shriram
finance limited.
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LOANS AND ADVANCES
Table no.3
Graph no. 3
10%
90%
Simple Complecated
Interpretation:
The above graph shows that the 90% lenders are feel simple
documentation process regarding Shriram finance co. ltd. and 10% lenders feel
complicated about documentation process.
It seems that many lenders are feel simple about documentation process.
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LOANS AND ADVANCES
Table no.2
Graph no. 4
30%
70%
Yes No
Interpretation:
The above graph shows that 70% are yes and 30% are no with the
Shriram finance limited offers additional facility with loan.
\ It seems that many lenders are agree that in company available additional
facility with loan.
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LOANS AND ADVANCES
5. Which features you like most in loan segments of Shriram Finance Co. Ltd?
Table no. 5
Particulars No. of Percentage
respondents
Less paper work 22 44%
Attractive interest rate 16 32%
Simple and fast processing 23 46%
Specially designed product for self employed 7 14%
Any other feature 6 12%
Graph no. 5
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Less paper work Attractive Simple and fast Any other
interest processing designed feature
rate Specially product for
self employed
Interpretation:
The above graph shows that 44% people like most in loan segments
that the company have less paper work, 46% people are like because of simple
and fast processing, 32% people are like because of attractive interest. 14%
people like most because of specially designed product for self- employed,
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LOANS AND ADVANCES
Table no. 6
Particulars No. of respondents Percentage
Very familiar 23 46%
Somewhat familiar 17 34%
Not very familiar 8 16%
Not at all familiar 2 4%
Graph no. 6
4%
16%
46%
34%
very familiar somewhat familiar not very familiar not at all familiar
Interpretation:
46% lenders are very familiar with Shriram Finance's loan products, 34%
peoples are somewhat familiar, 16% peoples are not very familiar, and 4% peoples are not at
all familiar with Shriram Finance's loan products.
It found that many lenders very familiar with Shriram finance loan
products.
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LOANS AND ADVANCES
7. What factors influenced your decision to choose Shriram Finance for a loan?
Table no. 7
Particulars No. of respondents Percentage
Interest Rate 27 54%
Lender service 16 32%
Flexible repayment option 10 20%
Reputation and trustworthiness 6 12%
other 3 6%
Graph no. 7
60%
50%
40%
30%
20%
10%
0%
Interest Rate Flexible Reputation othe
Lender service repaymen and r
t option trustworthines
s
Interpretation:
The above graph shows that 54% people choose company loan
because of interest rate, 32% people are choose company loan because of
lender service, 20% people are choose flexible repayment option, 12% people
choose because of reputation and trustworthiness.
Page 33
LOANS AND ADVANCES
Page 34
LOANS AND ADVANCES
8. How would you rate the accessibility of information about Shriram Finance's loan
offerings?
Table no. 8
Graph no. 8
8. How would you rate the accessibility of information about Shriram Finance's
loan offerings?
4%
14%
36%
46%
Interpretation:
The above graph show that 36% lender are rate the excellent to accessibility of information
about Shriram Finance's loan offerings, 46% lender are rate the good,12.5% lender rate the
average and 5% lender rate the poor to accessibility of information about Shriram Finance's loan
offerings.
It shows that more lenders are rate good and excellent on the accessibility of
Page 35
LOANS AND ADVANCES
Page 36
LOANS AND ADVANCES
9. Have you faced any challenges during the loan application process with
Shriram Finance?
Table no. 9
Particulars No. of respondents Percentage
Yes 22 44%
No 28 56%
Graph no. 9
9. Have you faced any challenges during the loan application process
with Shriram Finance?
44%
56%
Yes No
Interpretation:
44% lenders are challenges during the loan application process with Shriram
Finance, 56% lenders are not challenge during the loan application process with Shriram
Finance.
It seems that many lenders are faced challenges during loan application
process with Shriram finance.
Page 37
LOANS AND ADVANCES
10. which aspects of Shriram Finance's loan services do you find most
appealing?
Table no. 10
Particulars No. of respondents Percentage
Quick approval process 27 54%
Variety of loan options 20 40%
Transparency in terms and conditions 6 12%
Competitive interest rate 9 18%
other 7 14%
Graph no. 10
10. which aspects of Shriram Finance's loan services do you find most
appealing?
60%
50%
40%
30%
20%
10%
0%
Quick approval Transparency in Competitive othe
Variety of loan process terms and interest r
conditions rate
options
Interpretation:
The above graph shows that 54% lenders are aspects of quick approval
process and 40% lenders aspects variety of loan options of Shriram Finance's loan
services. There 18% lenders aspects competitive interest rate and 12% lenders aspects
transparency in terms and conditions and 14% lenders aspects other of Shriram
finance’s loan services.
It seems that many lenders quick approval process aspects of Shriram
finance’s loan services.
Page 38
LOANS AND ADVANCES
11. How likely are you to recommend Shriram Finance's loan services to others?
Table no. 11
Particulars No. of respondents Percentage
Very likely 20 40.86%
Likely 17 33.03%
Neutral 10 20.08%
Unlikely 03 6.03%
Graph no. 11
6.03%
20.08% 35.04%
33.03%
Interpretation:
The above graph shows that 35.04% lenders are very likely recommend Shriram
Finance's loan services to others, 33.3% lenders are likely recommend Shriram Finance's loan
services to others. 20.08% neutral and 6.03% is unlikely.
It seems that many lenders very likely recommend Shriram finance loan services to
others.
Page 39
LOANS AND ADVANCES
12. How did you come to know about Shriram Finance's loan services?
Table no. 12
Particulars No. of respondents Percentage
Online advertisement 13 27.1%
Word of mouth 11 22.9%
Social media 12 25%
Branch visit 03 6.2%
Others 09 18.8%
Graph no. 12
12.How did you come to know about Shriram Finance's loan services?
18.08%
27.01%
6.02%
25%
22.09%
Interpretation:
The above graph shows that the 27.01% lenders come to know through online
advertisements about Shriram Finance's loan services. 22.09% lenders come to know through
word of mouth, 25% lenders come to know through social media.
It seems that many lenders know about Shriram finance’s loan services
through online advertisement
Page 40
LOANS AND ADVANCES
Table no. 13
Graph no. 13
Interpretation:
76% the above graph shows that the more lenders satisfied with personal loan ,
48% are satisfied and 20% unsatisfied with gold loan and 32% highly satisfied with
gold loan, 60% are satisfied with Business loan, 64% satisfied with Two-wheeler
loan..
It seems that many lenders are satisfied with personal loan, gold loan, business loan
and two-wheeler loan.
Page 41
LOANS AND ADVANCES
Table no. 14
No of responds Percentage
Satisfied Highly Unsatisfied Satisfied Highly Unsatisfied
Satisfied Satisfied
Seating Arrangements 37 9 4 74 18 8
Drinking water 25 24 1 50 48 2
Clineliness 30 12 8 60 24 16
Light arrangements 29 16 5 58 32 10
Total 50 100
Graph no. 14
Interpretation:
The above graph shows that the 74% lenders are rate seating arrangements
for satisfied, 50% rate the drinking water with satisfied and 48% rate highly satisfied and 2%
unsatisfied with drinking water,60% lenders are satisfied with clineliness and 58% lenders
are satisfied with light arrangements.
It seems that many lenders are satisfied with seating arrangements, drinking
water, clineliness and light arrangements.
Page 42
LOANS AND ADVANCES
CHAPTER 10
FINDINGS
Page 43
LOANS AND ADVANCES
Findings
Amount of loans and advances are increasing consisting year by year and it is good
for company’s overall growth and also for lenders.
Overall loan services of Shriram Finance co. ltd.is good, lenders get satisfied with the
company.
The above pie chart shows that lenders take mostly personal loan.
I found that many lenders like in Shriram finance that simple and fast processing.
The above pie chart shows that the documentation process of Shriram finance is
Simple.
The pie chart shows most of the lenders choose company loan because of interest rate.
The above pie-chart most of the lenders know about Shriram finance loan services
through online advertisement.
Page 44
LOANS AND ADVANCES
CHAPTER 11
SUGGETIONS
Page 45
LOANS AND ADVANCES
Suggestions
o Company can develop internal as well as external expertise for evaluating the
management.
o For better loan recovery company should develop computerized system
o Repayment period for the borrower can be extended within time boundary in
case if serious financial problems.
o If there are any kind of hidden charges that must be disclose to lender before giving
loan to them.
o Company can conduct awareness program for borrower.
Page 46
LOANS AND ADVANCES
CHAPTER 12
CONCLUSION
Page 47
LOANS AND ADVANCES
Conclusion
Page 48
LOANS AND ADVANCES
CHAPTER 12
BIBILIOGRAPHY
Page 49
LOANS AND ADVANCES
Website www.google.com
www.wikipedia.com
http://www.shriram.com
Page 50
LOANS AND ADVANCES
CHAPTER
QUESTIONAIRE
Page 51
LOANS AND ADVANCES
Q"cstio⭲⭲aiíc o⭲ Ḻoa⭲s a⭲d Ad:a⭲ccs pío:idcd bQ Skíiíam Ii⭲a⭲cc Co. Ḻtd. Kcaí
sií/Madam,
Name Of Respondents*
Yo"í a⭲swcí
2. How do you feel about loan services rendered by Shriram Finance Co. Ltd.
*
Satisricd
HigklQ Satisricd
U⭲satisricd
3. How do you feel about documentation process regarding Shriram Finance Co.
Ltd Loan?
*
Simplc
Complicatcd
Page 52
LOANS AND ADVANCES
Ycs
No
5. Which features you like most in loan segments of Shriram Finance Co. Ltd?
7. What factors influenced your decision to choose Shriram Finance for a loan?
*
o I⭲tcícst íatc
o Ḻc⭲dcí scí:icc
o Ilcxiblc ícpaQmc⭲t optio⭲
o Rcp"tatio⭲ a⭲d tí"stwoítki⭲css
o Otkcí
8. How would you rate the accessibility of information about Shriram Finance's loan
offerings?
o Exccllc⭲t
o Good
o A:cíagc
o Pooí
Page 53
LOANS AND ADVANCES
9. Have you faced any challenges during the loan application process with Shriram
Finance?
*
o Ycs
o No
10. Which aspect of Shriram Finance's loan services do you find most appealing?
11. How likely are you to recommend Shriram Finance's loan services to others?
VcíQ likclQ
ḺikclQ
Nc"tíal
U⭲likclQ
Optio⭲ 5
12. How did you come to know about Shriram Finance's loan services?
*
O⭲li⭲c ad:cítiscmc⭲t
Woíd or mo"tk
Social mcdia
Bcack :isit
Otkcís
Page 54
LOANS AND ADVANCES
1. Personal Loan
(a) Satisfied (b)Highly satisfied (c)Unsatisfied
2. Gold Loan
(a) Satisfied (b)Highly satisfied (c)Unsatisfied
3. Two-wheeler loan
{a} Satisfied (b)Highly satisfied (c)Unsatisfied
1. Seating arrangements
(a) Satisfied (b)Highly satisfied (c)Not satisfied
2. Drinking Water
(a) Satisfied (b)Highly satisfied (c)Not satisfied
3. Cleanliness
(a) Satisfied (b)Highly satisfied (c)Not satisfied
4.Light arrangements.
(a)Satisfied (b)Highly satisfied (c)Not satisfied
Page 55
LOANS AND ADVANCES
Page 56