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EXECUTIVE SUMMARYThe project is on “CUSTOMER SATISFACTION REGARDING CITIFIACIAL PERSOAL LOANS”.I was assigned south Bangalore where I was required to collect & analyze data from south Bangalore.The research involved studying existing customers. It covered each and every aspect of personalloan, which can affect customer satisfaction. The main objective of the study was to find out areaswhere customers are not satisfied with the service offered by Citifinancial regarding personal loan.I was required to collect data from existing customers, analyze it, interpret it & makerecommendations which can help Citifinancial to improve on areas where it is lacking & achievebetter customer satisfaction by focusing on such areas.The report will first give you a brief about the research methodology, which I was supposed to use inthe study. After this you will come to know about personal loans & the current trends in personalloans market in India. You will also get information on Citigroup & Citifinancial. Apart from this youwill come to know about how I analyzed & interpreted the collected data. I hope that you will findthis report interesting & will help you in conducting further studies on this sector. CHAPTER-1
AIM OF THE STUDY AIM OF THE STUDYPersonal loans market is growing in India and one should know about this sector. The future looksgood & one can make a good career in this sector.Now you will ask one question, why I chose Citifinancial only, why not others? The main reasonbehind choosing Citifinancial is that it is not the market leader Citifinacial is just a market follower. Iwanted to choose such a company that is growing like Citifiancial. Where I can help the company,grow more, by helping it focus on such areas where it is lacking as compared to its competitors,with respect to various aspects of personal loan. This will help the company grow more by satisfyingthe customers in a better way through focusing on areas where it can achieve better customersatisfaction.All these things inspired me to do project on this area.
CHAPTER-2 DESIGN OF THE STUDY DESIGN OF THE STUDYTHE PROBLEM: Citifinancial is witnessing below average industry growth with respect to itspersonal loans. Despite having a good network of its branches & DSAs in cities where it is present, itis witnessing a low growth as compared to its competitors.OBJECTIVE: Citifinancial holds customer dissatisfaction as the main reason beyond low growth inits personal loans. So, the objective of this study is to find out from the existing customers, whetherthey are satisfied with the Citifinancial personal loans or not, where the study will cover customerreaction towards each & every aspect of the product. The study will try to find out the areas whereCitifinancial needs to improve.GEOGRAPHICAL AREAS: I was allotted south Bangalore where I supposed to cover areas such asBTM, Koramangala, HSR layout, Audugodi, JP Nagar, Jayanagar, Banashankari & Basavanagudi.SCOPE: The study covered each & every aspect of the customers. The study focused on customerreaction with respect to the overall service and each & every aspect of the product such as interestrate, EMI etc.
LIMITATIONS: Though the study has covered each & every aspect of customer satisfaction but ithas neglected customer-employee interaction, which contributes highly to the customer satisfaction.Due to this, though the study may help in finding out the areas where Citifinancial needs to improvewith respect to product features but it will not help Citifinancial in deciding whether to train itsemployees or not for deal in a better way with the customers. DESIGN OF THE STUDY-RESEARCH METHODOLOGYRESEARCH DESIGN: The research was Exploratory where it tried to cover Who, Where, When, How & Why about theexisting customers of Citifinancial.DATA COLLECTION:Mainly two types of data were used for data collection viz:Secondary data: The main source was the customer database, which was given by Citifinancial . Itwas used to find out all general information about the existing customers such as their names, theirresidential & official address & their phone numbers.Primary data: The main source was the questionnaire, which was designed to collect all the primarydata such customer reaction towards all the aspects of the product.RESEARCH TYPE: The type of research used to collect primary data was Quantitative, where all the findings werequantified to draw interpretations. On the basis of which conclusions were made. Telephonicinterview was used to collect data, where customers were interviewed for five to ten minutes overthe telephone. DESIGN OF THE STUDY-RESEARCH METHODOLOGYTYPE OF QUESTIONS:To collect the primary data, a questionnaire was devised which consisted of:
Dichotomous questions: Having three optionsBalanced scaling questions: Having three points on which the customers were required to rate.Apart from this, Demographic based questions were there to collect data about the customersregarding their names, age, income, occupation, household income, amount of loan & the numberof installments.SAMPLING TECHNIQUE:Stratified sampling was used to cover all types of customers on the basis of income.SAMPLE SIZE:I was required to collect a sample of 50 from the database given.ANALYSIS:Single Tabulation was used for arranging the collected data & for analyzing & interpretation CHAPTER-3 PERSONAL LOANS
PERSONAL LOANSDEFINITIONS:“An amount of money borrowed from a bank or other lender by an individual”.“A loan based on a consumers income, debt and credit history”“Money lent to an individual by a financial institution for a specific personal purpose except buying ahouse. One main difference between a personal loan and a home loan is that most personal loansare unsecured”.“A loan obtained by an individual for personal (as opposed to business or investment) purposes. Apersonal loan may or may not be secured”.“A loan that establishes consumer credit that is granted for personal use; usually unsecured andbased on the borrowers integrity and ability to pay”.A personal loan is a lump sum which you borrow from a bank, building society or another lender. Apersonal loan could be the best option for you if you are looking to borrowing money for between 1and 5 years and is particularly ideal if you have other debts that youre looking to consolidate intoone loan to reduce your overall monthly payments.The simplest explanation of the use of the word "personal" to describe these types of loans is thatthe money that is borrowed is to be used for personal reasons. If the aim of the loan was to financethe purchase of a home, that is a mortgage. If the purpose of the loan is to help a business toexpand, that is a business loan. If you are taking out a loan to fund something that will be for yourown personal use, or to help you out with personal issues, then that is a personal loan. The best wayto expand on this would be to look at what a personal loan could be used for. PERSONAL LOANSA personal loan is an amount of money offered, normally by lending institutions such as banks andbuilding societies, on the condition that it will be paid back at some later date. Personal loans areavailable in a whole host of formats and can range from £500 upwards. The term of the loan is oftendependent on whether the lender requires security to be offered by the borrower and the size of theregular repayments you wish to make.Under most personal loan arrangements you receive a lump sum, equal to the amount of the agreedloan and in return you agree to make regular repayments. These repayments are normally monthlyand cover both the interest due and the capital outstanding loan amount. If you have established theloan as a repayment type loan then the repayments will include an amount to pay off some of thecapital and reduce your outstanding debt. Payments are made throughout the term of the loan toensure that the total debt is repaid to the lending institution.AMOUNT OF PERSONAL LOAN
Amount wise personal loans may range from 15,000 to 10, 00,000.RATE OF INTEREST Currently, interest rates across all banks are in range of 10% to 22%. The interest rate usuallydepends on two factors:Amount of loan: Higher the amount lower will be the interest rate & vice verse.Type of loan: While secured loan carries lower rate where as unsecured loan carries higher rate. PERSONAL LOANSUSES OF PERSONAL LOANThe range of uses for the money is very wide indeed. Common uses include the purchase of a newcar, a holiday or the repayment (consolidation) of existing debt.Frequently the lending institution will ask for details of the reason you require the loan. Althoughthe purpose of the loan may have little impact on their decision to grant the money, it can havesome influence on the maximum term of the loan.It is more likely that larger sized loans, for purchases such as cars, home improvements etc. willresult in a longer repayment term. It is not uncommon for the purchase of a car to established witha repayment term of 3 years whilst the term for home improvement loans can be for much longerterms (sometimes as long as ten years).SUITABILITY OF PERSOAL LOANIf you are looking to borrow money over a period of less than ten years, whether you need themoney for a purchase or perhaps to repay existing debt, then a personal loan may be suitable foryour needs.Personal loans are just another form of credit. If you are considering a personal loan to runalongside other forms of personal credit such as overdrafts and credit cards, you must give carefulconsideration to whether you will be able to afford the total of your regular payments. Whenconsidering the situation it is wise to take into account your ability to pay were you unable to workdue to illness or should you lose your employment. PERSONAL LOANSACCESSABILITY TO PERSOAL LOAN
There are hundreds of potential lenders willing to offer you the opportunity to borrow from them.However the offer of finance does depend upon your ability to repay the debt and your previouscredit history. Those applicants that have had credit difficulties in the past can find it more difficultto obtain access to a personal loan compared to those applicants that have a better credit history.It is normally true that the better the credit risk you are, the easier you will find it to obtain apersonal loan. It is also likely that people who have the best credit histories will be offered the bestdeals. This normally means a lower interest rate is charged or the repayment terms are longer.DIFFERENCE BETWEEN PERSONAL & BANK LOANThere isnt much of a difference between a bank loan and a personal loan. They are in essence thesame thing, in that you are borrowing an amount of money from a product provider that you willrepay at agreed intervals with interest added to the sum.The difference is that a bank specifically provides a bank loan. A few years ago, the bank was one ofthe only places a customer could get a loan, which is why people used to say they needed a goodrelationship with their bank manager. Obviously, this isnt the case now, as building societies andmany other financial companies also offer loans.MERITS & DEMERITS OF PERSONAL LOAN MERITS DEMERITS Quick High rate disbursement of interest. of loan. PERSONAL LOANSTYPES OF PERSOAL LOANUnsecured personal loan: Is a debt that you can acquire where you do not have to use anyspecific collateral to back the loan. Usually, the people who would be eligible for this type of loanwould be people who do not own a home, or people with bad credit.An unsecured loan will mean less risk to the person taking out the loan than a secured loan. This isdue to the fact that a person will not have to use their home as insurance for the loan. The negativeaspect of this is that due to the lack of insurance, the interest payments set will be higher, as theloan provider will need to cover the added risk of not being able to get their money back. A positiveaspect of the unsecured loan could be that your application is processed a lot quicker, so you canget hold of money more rapidly. This speed is due to the fact that your home will not need to bevalued to make sure your security is available. Another upshot of this is that you can submit anapplication, get a reply and answer very quickly to your application, and just because you havesubmitted does not mean you are under an obligation to take up the loan.Secured personal loan: Is a loan that is specifically assigned for home owners. This is where thehome is used as collateral, which is a larger risk for a customer than an unsecured loan, because ifyou fall into difficulties or are unable to repay the loan for any particular reason your home is at risk.One of the most vital points to understand about a secured loan is that it is not best used as asolution to debt problems, because it is even more important that you have budgeted properly to
cover the loan payments. Many people with debt problems have them precisely because they are notgood at budgeting to cover loan payments.Secured personal loans could be taken out for various reasons. You could want to make homeimprovements, for which you can borrow money secured on your home, as you are hopefullyincreasing its value. Perhaps it could be for a debt consolidation loan, where you take out a loan foran amount large enough to pay off several other debts for a longer period PERSONAL LOANS MARKET IN INDIA PERSONAL LOANS MARKET IN INDIAIn recent times, personal loans market in India is witnessing a rapid growth. Over the year 2003-04personal loans disbursement has grown by 40%. Consumer credit in India is currently growing ataround 45%-50% annually, and considering that the Indian economy is expected to grow at around8% this year, demand for consumer loans including personal loans is expected to remain strong.The growth is high in unsecured personal loans as compared to secured personal loans.Following are some of the factors responsible for growth in personal loans market in India:Falling interest rates: Interest rates have gradually fell form above 25% to below 20% across allbanks over the years.
Change in consumer behavior: Once customers hesitated to take loans from banks but now theyare looking at it from a positive angle.Shift in focus of banks from corporate lending towards retail lending: Banks are nowconcentrating more on retail loans including personal loans, home loans & auto loans due to thegrowth in retail loans.Positive demographics: There is rapid growth in urban population, who are most likely to take retailloans. Apart from this middle class segment is growing, which account for about 70-80% of the totalloan seekers.MAJOR PLAYERS: At preset ICICI Bank is the market leader having more than 30% market share inpersonal loans market, followed by HDFC Bank. Apart from this there are several other banksincluding Government banks, Private banks & MNC banks who are in the lead. In case of MNC banks,Citifinancial tops the list with respect to total loan disbursements & in terms of market share. It isfollowed by HSBC, Standard Chartered bank, ABN AMRO & others. CHAPTER-4 CITIGROUP
CITIGROUPLEGACYCitigroup Inc., todays pre-eminent financial services company, with some 200 million customeraccounts in more than 100 countries, dates back to the history of Citibank, which began in 1812;Travelers Life & Annuity, since 1864; Smith Barney, founded in 1873; Banamex, formed in 1884 as aresult of the merger of Banco Nacional Mexicano and Banco Mercantil Mexicano; and SalomonBrothers, which dates back to 1910 and later merged with Smith Barney, a subsidiary of TravelersGroup at the time.Other major brand names under Citigroups trademark red umbrella include Citi Cards, CitiFinancial,CitiMortgage, CitiInsurance, Primerica, Diners Club, Citigroup Asset Management, The CitigroupPrivate Bank and CitiCapital.FAMILY TREECitigroup is largely organized into four groups: Citigroup Global Consumer Group, the GlobalCorporate and Investment Banking Group, Citigroup Global Investment Management, and GlobalWealth Management. CITIGROUPPRODUCT LINESGlobal Consumer Group Cards o World’s largest provider of credit cards o Third Quarter 04 Net Income of $1.267 billion Consumer Finance o World’s consumer finance leader o Third Quarter 04 Net Income of $643 million
Retail Banking o Citibank: highest-rated, leading global brand o Third Quarter 04 Net Income of $1.225 billionGlobal Corporate and Investment Banking Group Capital Markets & Banking o #1 underwriter of Combined Debt and Equity and Equity-related transactions o Third Quarter 04 Net Income of $1.159 billion Global Transaction Services o Leading provider of transaction products; $7.3 trillion in assets under custody o Third Quarter 04 Net Income of $285 million CITIGROUPPRODUCT LINESGlobal Investment Management Life Insurance & Annuities o One of the fastest growing life insurers in the U.S with expanding international presence o Third Quarter 04 Net Income of $282 million Asset Management o A leader with $500.7 billion in assets under management o Third Quarter 04 Net Income of $84 millionGlobal Wealth Management Private Client Services o A leader in managed accounts with $1.087 trillion in total client assets o Third Quarter 04 Net Income of $195 million Private Bank o Offers widest range of services to more than 25,000 of the world’s most successful and influential families o Third Quarter 04 Net Income of $136 million CITIGROUP
IN INDIACitigroup opened its first office in India in 1902. Since then they have become one of Indias mostdiverse and recognized financial service providers operating in 25 offices and branches across 18cities. Citigroup India has 5,000 employees nationwide. Their operations encompass a premierglobal corporate and investment bank and a well-established consumer business under the Citibankand CitiFinancial brands.The global corporate and investment banking group provides a comprehensive range of financialservices including treasury management, transaction services, securities custodianship, foreignexchange, fixed income and equities sales and trading, and corporate finance to corporate clients,governments and financial institutions.Citibank India is the countrys leading retail bank with a history of innovation and customer service.Today we are the largest issuer of credit cards and offer mortgages, personal loans, insurance, andinvestment services for on-shore customers. Citibank India also provides banking services to theinternational Indian community in 23 cities around the world. CITIFINANCIAL
CITFINANCIALSince 1912, CitiFinancial has been helping people realize their financial goals and dreams. Headedby CEO and President Harry D. Goff, CitiFinancial is a member of Citigroup, the worlds largestfinancial services provider.They have more than 2000 offices in the United States and Canada. Each branch manager runs theirCitiFinancial office as if it is their own business, so loan decisions are made locally.They provide home improvement loans, bill consolidation loans, money for tuition, vacationgetaways and unexpected expenses. They have a solution that helps you afford what you want orneed most in life. They’ll get you the money you need when you need it!Products & Services: Personal loans Home loans Auto loansCitifinancial personal loan: It can be used to pay off your credit card bills, meet yourunexpected expenses or it can be used for education or travel purpose. At this time, CitiFinancialPersonal Loans are not available for business purposes. Their specialty is extending credit forpersonal, family and household purposes.Qualification criteria: CitiFinancial grants personal loans to people over age 18 who haveestablished credit and can secure the loan with personal property. Some established credit, like agasoline or store credit card, is necessary, and employment or other steady income is required. Wealso make unsecured loans to homeowners. People just beginning to establish credit may be askedto have another responsible adult co-sign for the loan. CHAPTER-5
ANALYSIS & INTERPRETATION ANALYSIS & INTERPRETATIONAnalysis has been made for each & every question given in the questionnaire. Mainly analysis hasbeen done for the sample of 50 covering south Bangalore. This analysis represents only of southBangalore & not of whole Bangalore & rest of India. Therefore the findings will show the picture ofsouth Bangalore only.To have an in-depth analysis of the sample, the sample of 50 has been classified into 3 groups byusing household income as classification data. Therefore the analysis will not only show the pictureof the whole sample together but it will also show the picture of each group separately within thesample.On the basis of analysis, interpretation has been made for the whole sample as well as for eachgroup within the sample.Before jumping on to the conclusion, one should know the type of questions being asked & theoptions being given, on the basis of which analysis & interpretations have been made.Type of questions:Dichotomous questions: options given were:Agree (it means customer is satisfied)
Don’t agree (it means the customer is unsatisfied)Can’t say ANALYSIS & INTERPRETATIONType of questions:Balanced scaling questions: Here the customer is required to rate on a scale of 1 to 3 including 1 &3.Rating of 1 means ‘bad’ that is the customer is unsatisfiedRating of 2 means ‘average’ that is the customer is neither unsatisfied nor satisfied also.Rating of 3 means ‘good’ that is the customer is satisfied.CLASSIFICATION OF SAMPLE (TOTAL SAMPLE:50)The whole sample of 50 has been divided into 3 groups, using household income as classificationdata. Following are the 3 groups:Group 1: It consists of customers having household income of less than 15000. The total strengthof this group is 15.Group 2: It consists of customers having household income in the range between 15000 & 25000including both 15000 & 25000. The total strength of this group is 25.Group 3: It consists of customers having household income of more than 25000. The total strengthof this group is 10.In the following pages you will encounter some tables & pie charts for each of the topic separately,being covered in the questionnaire. For each topic there will be one table showing responses of eachgroup separately & combined together which forms the total sample of 50. Apart from this there willbe 4 pie charts for each topic. While the first pie chart will show the responses of all groups takentogether where as the other 3 will show the responses of each group separately. QUESTIONNAIREI, Sharanabasav Nandimath doing Masters in Business Administration, isdoing a study which is a part of the curriculum and is administered to know“The Customer satisfaction in citifinancial personal loans”. I thank you inadvance for your time and cooperation in this study. I assure completeconfidentiality of all your responses.Name : ___________________________Occupation : ___________________________ 1. Average family income per annum
< Rs 15000 , >15000 <25000 , > 25000. 2. Age group 20 - 30, 30 - 40, 40 - 50, > 50 3. How customer is satisfied with citifinance service provided? 1, 2, 3 Rating of 1 means ‘bad’ that is the customer is unsatisfied Rating of 2 means ‘average’ that is the customer is neither unsatisfied nor satisfied also. Rating of 3 means ‘good’ that is the customer is satisfied.4. HOW IS CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO KEEP UP ITS PROMISES? 1, 2, 35. CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO MEET ITS CUSTOMERS’ NEEDS 1, 2, 3 6. CUSTOMER OPINION REGARDING CITIFINANCIAL AS A TRUST WORTHY BANK 1, 2, 3 7. CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR LOAN APPROVAL 1, 2, 3 8. CUSTOMER SATISFACTION REGARDING EMI SCHEMES OFFERED BY CITIFINANCIAL 1, 2, 3 9 . CUSTOMER SATISFACTION REGARDING INTEREST RATE CHARGED BY CITIFINACIAL 1, 2, 3 10. CUSTOMER SATISFACTION REGARDING PROCESSING FEES CHARGED BY CITIFINANCIAL 1, 2, 3 ANALYSIS & INTERPRETATIONQ.No-3) CUSTOMER SATISFACTION REGARDING OVERALL SERVICE OFCITIFINANCIAL.
Only 42% of the total sample of customers is satisfied with the overall service of Citifinancial.In group 1, only 13% of the customers are satisfied with the overall service of Citifinancial.In group 2, the situation is somehow better than group 1 as here, about 48% of the customers aresatisfied with the overall service of Citifinancial.
In group 3, about 70% of the customers are satisfied. This shows the higher income customers aremuch more satisfied than the lower end customers as group 3 denotes higher end whereas group 1denotes lower ed customers. ANALYSIS & INTERPRETATIONQ.No-4) CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO KEEP UP ITSPROMISESIt shows that about 74% of the total sample of customers agrees with the fact that citifinancial wasable to keep up its promises.
In group 1, only 40 % customers agree with the fact that citifinancial was able to keep up itspromises.In group 2, as against group 1, a staggering 88% customers agree with the fact that citifinancial wasable to keep up its promises.I group 3, about 90% customers agree with the fact that citifinancial was able to keep up itspromises. This again shows that high income group customers (group 3) are much more satisfiedwith Citifinancial than the low income group customers (group 1), as 90% customers of group 3support the above statement as against a mere 40% customers of group 1 who support the abovestatement. ANALYSIS & INTERPRETATIONQ.No-5) CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO MEET ITSCUSTOMERS’ NEEDS
It shows that about 70% of the total sample of customers agrees with the fact that Citifiancial wasable to meet their personal needs.In group 1, only 33% of the customers agree with the fact that Citifinancial was able to meet theirpersonal needs.I group 2, as against group 1, a staggering 84% of the customers agree with the fact thatCitifinancial was able to meet their personal needs.I group 3, about 90% customers agree with the fact that citifinancial was able to meet their personalneeds. This again shows that high income group customers (group 3) are much more satisfied withCitifinancial than the low income group customers (group 1), as 90% customers of group 3 supportthe above statement as against a mere 33% customers of group 1 who support the above statement.
ANALYSIS & INTERPRETATIONQ.No-6) CUSTOMER OPINION REGARDING CITIFINANCIAL AS A TRUST WORTHYBANKIt shows that about 74% of the total sample of customers agrees that Citifinancial is a trustworthybank.In group 1, only 40 % customers agree with the fact that Citifinancial is a trustworthy bank.In group 2, as against group 1, 88% customers agree with the fact that Citifinancial is a trustworthybank.
I group 3, about 90% customers agree with the fact that citifinancial is a trustworthy bank. Thisagain shows that high income group customers (group 3) are much more satisfied with Citifinancialthan the low income group customers (group 1), as 90% customers of group 3 support the abovestatement as against a mere 40% customers of group 1 who support the above statement. ANALYSIS & INTERPRETATIONQ.No-7) CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR LOAN APPROVALIt shows that 84% of the total sample customers are satisfied with the time taken for loan approvalby Citifinancial.
About 80% customers of both groups 1 & 2 are satisfied with the total time taken by Citifinancial forloan approval.As against group 1 & 2, 100% customers of group 3 are satisfied with the total time taken byCitifinancial for loan approval. ANALYSIS & INTERPRETATIONQ.No-8) CUSTOMER SATISFACTION REGARDING EMI SCHEMES OFFERED BYCITIFINANCIALIt shows that about 66% of the total sample customers are satisfied with the EMI schemes offered byCitifinancial.
In group 1, about 67% customers are satisfies with the EMI schemes offered by Citifinancial.In group 2, about 60% customers are satisfied with the EMI schemes offered by Citifinancial.As against group 1 & 2, about 80% customers of group 3 satisfied with the EMI schemes offered byCitifinancial, indicating that they are the most satisfied among all groups, with Citifinancial. ANALYSIS & INTERPRETATIONQ.No-9) CUSTOMER SATISFACTION REGARDING INTEREST RATE CHARGED BYCITIFINACIAL
It shows a mere 8% of the total sample customers are satisfied with the interest rate being chargedby Citifinancial. & about 54% customers are unsatisfied with it.In group 1, a high of 67% customers are unsatisfied with the interest rate being charged byCitifinancial. The interesting thing is that not even a single customer is satisfied.Here also the scene is not so good as 56% customers of group 2 are unsatisfied with the interestrate being charged by Citifinancial.
In group 3, though only 30% customers are unsatisfied but on the other had only 10% are satisfiedwith the interest rate being charged by Citifinancial. This shows that majority of the customersacross all groups are unsatisfied with the interest rate being charged by Citifinancial. ANALYSIS & INTERPRETATIONQ.No-10) CUSTOMER SATISFACTION REGARDING PROCESSING FEES CHARGED BYCITIFINANCIALIt shows a mere 8% of the total sample customers are satisfied with the processing fees beingcharged by Citifinancial. & about 54% customers are unsatisfied with it.
In group 1, a high of 67% customers are unsatisfied with the processing fees being charged byCitifinancial. The interesting thing is that not even a single customer is satisfied.Here also the scene is not as good as 56% customers of group 2 are unsatisfied with the processingfees being charged by Citifinancial.In group 3, though only 30% customers are unsatisfied but on the other had only 10% are satisfiedwith the processing fees being charged by Citifinancial. This shows that majority of the customersacross all groups are unsatisfied with the interest rate being charged by Citifinancial. ANALYSIS & INTERPRETATIONNUMBER OF CUSTOMERS WHO FACED ANY INCONVENIENCE FOR GETTIG IN TOUCHWITH ANY CITIFIANCIAL PERSOAL LOAN OFFICER OR THE CONCERNED AGENT FOREQUIRY REGARDING STATUS OF PROCESSING OF LOANOut of a sample of 50, not even a single customer faced any inconvenience I getting in touch withany Citifiancial personal officer or the concerned agent.NUMBER OF CUSTOMERS FACED ANY PROBLEM FROM CITIFINANCIAL DURINGREPAYMENTOut of the sample of 50 customers being surveyed, only 5 customers faced any problem duringrepayment.
CUSTOMER SATISFACTION REGARDING SOLUTION GIVEN TO THE PROBLEMREGARDING REPAYMENT BY CITIFIANCIALIn this, only the 5 customers who faced the problem were interviewed & all of them were satisfiedwith the solution give by Citifinancial. CHAPTER-6 FINDINGS AND RECOMENDATION FINDINGSFrom the analysis part one can interpret that customers across all groups in the sample aresatisfied with the service offered by Citifinancial except for the interest rate & processingcharges. We have already seen that a very high percentage of customers across all groups in the
sample are unsatisfied with the rate of interest & the processing fees being charged byCitifinancial.As I interviewed all the customers in the sample, one thing I found is that the main reason behindsuch unsatisfaction by a majority of the customers is the high rate of interest being charged byCitifinancial. It all depends on customer attitude & perception.People have a tendency of comparing each option with the other option available to them & thenthey evaluate. In case of Citifinancial, the same thing has happened. Here also the customers haveperception that the rate charged by Citifinancial is comparatively higher than the rate charged byother institutions offering personal loans.If I say that Citifinancial charges 16% interest and I ask whether it is high or low, then you may notreply as you don’t have other options with which you can compare it. But, say if you have 3 optionsviz: Citifinancial charging 16% interest ICICI Bank charging 7.5% interest HSBC charging 15% interest. FINDINGSThen in this case you will compare all the options & will definitely think that the rate charged byCitifinancial is high as compared to others. This is what has exactly happened with Citifinacial.Same is the case with the processing fees also as customers think that the fees charged byCitifinancial is very high.Except for the interest rate & the processing charges, customers are satisfied with all other aspectsof the service being provided by Citifinancial. Only this thing is affecting the customer satisfactionregarding overall service offered by Citifinancial. There are many customers who are thoughsatisfied with the overall service of Citifinacial but they are not satisfied with the interest rate &processing fees being charged by Citifinancial.This signals a danger for Citifinancial as its customers are not satisfied with the interest rate &processing charges. As many customers look out for only these two aspects, any other institutionoffering personal loan at a low rate may come & takeaway the customers of Citifinancial. This is nowstarted happening with Citifinancial as its customers are now turning towards its competitors, whoare offering personal loans at a comparatively lower rate.
RECOMMENDATION RECOMMENDATIONMy recommendation will clearly focus on the interest rate & the processing fees being charged byCitifinancial.I would not recommend Citifinancial to fix interest rate only according to what the customers want &neglecting the RBI guidelines. I would not recommend Citifinancial to lower its interest rate but I canrecommend that Citifinancial should try to balance the following three things while fixing the rate: RBI guidelines Preference of customers
Rates being charged by its competitorsThe most important thing is that while fixing the interest rate Citifinancial should not only complywith the RBI guidelines but it should try to fix it competitively. The rates should be chargedcompetitively with the rates being charged by the competitors especially the MNC banks.Since Citifinancial is an MNC, people when come here to take personal loan will definitely compareit with the personal loans being offered by other MNCs such as HSBC Bank, ABN AMRO Bank,Standard Chartered Bank, besides comparing it with the personal loans offered by India privatebanks & government banks. It is natural as Citifinancial, HSBC Bank, ABN AMRO Bank, StandardChartered Bank belong to same category, people will first try to compare any product of Citifinancialwith that of the other three. So, Citifinancial should watch out its competitors especially the MNCbanks which may easily take away its customers. CHAPTER-7 CONCLUSION
CONCLUSIONThe whole study shows how customers are satisfied with the personal loans offered by Citifinancialexcept for the interest & processing fees part, with which the customers are unsatisfied.This is not only the picture of south Bangalore but of whole Bangalore & of whole India.Customers across all cities/tows, wherever Citifinancial is present, are unsatisfied with the rate ofinterest & processing fees being charged by Citifinancial.Citifinancial is now working on it & will soon come out with a new rate that is competitively set & inaccordance to RBI guidelines & customers preference. MY
LEARNINGS MY LEARNINGSThis project has helped me learn lot of new things. It has helped me to apply all those things, whichI studied only in books.This project has given me a deep insight into the world of not only personal loans but of consumerloans as a whole. I came to know about the various aspects of personal loan.Apart from this it helped me to learn how customer satisfaction studies are carried out. Howresearch methodology is implemented, how questionnaires are designed, how customers areinterviewed over telephone, how data is collected, how it is analyzed, interpreted & howrecommendations are made on the basis of findings.To say that all these things that I have learned in books, I have seen it & done it practically. This wasall possible only through this project. This project has really helped to learn a lot about thecorporate world. I hope this will definitely help me in my real job.