1. PROJECT REPORT
ON
“The study of 'Loans and advances"
At
ADARSH COOPERATIVE BANK UDAIPUR
JRN VIDYAPEETH UNIVERSITY (FMS)
Udaipur, Rajasthan (313001)
SUBMITTED TO:- MR. NAVEEN MATHUR SUBMIT BY:- BHAVNA NAGDA
2. MBA III SEM
ACKNOWLEDGEMENT
A successful project can never be prepared by the single effort of the person
to whom project is assigned, but it also demand the help and guardianship of some
conversant person who helped he undersigned actively or passively in the
completion of a successful project.
I would first of all like to express my gratitude MR. NAVEEN MATHUR for
assigning me such a worthwhile topic THE STUDY ON 'LOANS AND
ADVANCES. During the actual project work, has been a source of inspiration
through heir constant guidance; personal interest; encouragement and help. I
convey my sincere thanks to him.
I sincerely thank all faculty members of my institution for their extra effort
to make our session on line inspire of all ideas.
I thank my counsellors for their indispensable support and encouragement
thought the project. I must also thank to respected " MR. NAVEEN MATHUR " for
her valuable suggestion while working on the project. I would like to thank all
those who helped me directly or indirectly.
3. PREFACE
Practical training is an important part of the management courses.
Theoretical studies in the classrooms are not sufficient to understand the function
f complex and large sized organization. Thus, it is increasingly felt that the
personal policies and practices should be designed in such a way so as to fix the
right job in right time with required skills thereby increasing, he efficiency of the
organization.
The burden of setting the tone of the organization is future development
and establishment of its operating norms and culture rests on recruitment, thus
effective recruitment program forms a foundation stone for a sound personnel
selection, it provides a sufficient number of qualified applicants, so that a
company can be truly selective.
Hence, it is the utmost need of the day that manpower policies provide the
guidelines for the important activities and be dynamic and responsive to be
changing vital environment.
4. DECLARATION
I hereby declare that the project report entitled "LOAN AND ADVANCE
" is written and submitted by me under the guidance of " MR. NAVEEN MATHUR "
is my original work.
This project is not copied from any source or other project submitted for
similar purpose and this particular project would only be used for academic
purpose and would not be considered for any commercial purpose.
BHAVNA NAGDA
M.B.A III SEM
5. INTRODUCTION OF ADARSH CO-OPERATIVE BANK LTD.
Established on 5th September 1972 as sirohi district commercial co-
operative bank itd.was setup with an objective to promote financial co-operation
among low income group members of society and to encourage savings for
creating funds to aid he deserving members. t was in line with government's focus
on raising the living standards an earning capacity of farmers and laborers. The
bank was registered under provision of adarsh co operative society act, 1965.
Initially it was able t mobilize 52 members and a capital of a 51,700 and banking
business started from 18th October 1972.
Bank was functioning in both rural as well as urban areas since 1972, which
continued until 1986. The banking business continued in sirohi district with 4
branches, but thereafter, new branches were opened to cater large area a rad
customers. Initially in the march 2009, he number of branches of bank reached
25.within the period bank created benchmarks for others to follow by setting
standards in terms of exemplary customer services and in terms of having a vast
base of highly satisfied customers, both in rural as well as in urban areas.
Going beyond the boundaries of Sirohi district in Rajasthan and expanding
network of branches in Gujarat too, bank earned the distinction of becoming the
first bank in the state to get registered under the multi state cooperative society
act 2002. Resulting; change in its name from MadhavNagrikSahakari bank
limited. In 2009, Sri DeesaNagriksahakari bank Itd.OfDeesa, Gujarat and
Surendranagar.
Mercantile cooperative bank of Surendranagar district of Gujarat was
merged into Adarsh cooperative bank increasing itsarea of operations and
customer base.
As on date all the 46 branches stand computerized and the banks holds the
honour of being one of the first computerized banks. The banks has also achieved
highest growth rate amongst cooperative banks in northern India.
6. What Is a Loan?
A loan is when you receive money from a friend, bank or financial
institution in exchange for future repayment of the principal, plus interest. The
principal is the amount you borrowed, and the interest is the amount charged for
receiving the loan. Since lenders are taking a risk that you may not repay the loan,
they have to offset that risk by charging a fee-known as interest. Loans typically
are secured or unsecured. A secured loan involves pledging an asset (such as a
car, boat or house) as collateral for the loan. If the borrower defaults or doesn't
pay hack the loan, the lender takes possession of the asset. An unsecured loan
option is preferred, but not as common. If the borrower doesn't pay back the
unsecured loan, the lender doesn't have the right to take anything in return.
Definitions:-
Loans and advances are a special category of accounts receivable and
require (with some variations) records and procedures similar to those used for
the normal accounts receivable of a Department.
"Loans" Loans include any money owed to the Government that
is evidenced by a promissory note. Under the Northwest
Territories Act, all loans made by the Territories must
be approved by ordinance.
"Advances" (See Accountable Advances Regulations, 9908)
7. "Standing
Advances"
include any money paid out of the Consolidated
Revenue Fund that is repayable to the Territories but is
not chargeable to an appropriation and is no evidenced
by a promissory note; for example, pet cash advances.
"Temporary
Advances"
include any money paid out of the Consolidated
Revenue Fund that is repayable to the Territories, and
is chargeable to an Activity, but is not evidenced by a
promissory note; for example, travel advances.
According to the Financial Administration Act, th
Commissioner may make regulations authorizing
accountable advances of funds.
8. FORMS OF LOANS:-
There are many form of loans as follows:-
● Overdraft
● Cash order
● Credit cards
● Housing loan
● Vehicle loans
● Education loan
● Personal loan
● Gold loan
● Festival loan
● Consumer Loans
● Gold loans
● Loan against pension
● Loans to doctors for Opening clinic
Types of Loans:-
Personal loans:-You can get these loans at almost any bank. The good news
is that you can usually spend the money however you like. You might go on
vacation, buy a jet ski er get a new television. Personal kans are often unsecured
and fairly easy to get if you have average credit history. The downside is that they
are usually for small amounts, typically not going over $5,000, and the interest
rates are higher than secured loans.
Cash advances:-If you are in a pinch and need money quickly, cats advances
from your credit card company or other payday loan institutions are an option.
These loans are easy to get, but can have extremely high interest rates. They
9. usually are only for small amount typically $1,000 or less. These loans should
really only be considered when there are no other alternative ways to get money.
Student loans:-These are great ways to help finance a college education. The
most common loans are Staffond loans and Perkins loans. The interest rates are
very reasonable, and you usually don't have to pay the loans back while you are
a full-time college student. The downside is that these loans can add up to well
ever $100,000 in the course of four, six or eight years, leaving new graduates with
huge debts as they embark on their new carcers.
Mortgage loans:-This is most likely the biggest loan you will ever get! If you
are looking to purchase your first home or some form of real estate, this is likely
the best option. These loans are secured by the house or property you are buying.
That means if you don't make your payments in a timely manner, the bank or
lender can take your house or property back! Mortgages help people get into
homes that would otherwise take years to save for. They are often structured in
10-, 15 or 30-year terms, and the interest you pay is tax-deductible and fairly low
compared to other loans.
Home Loans
Home-equity loans and lines of credit:-Health owners against equity they
have in their house with these types of loans. The equity or loan amount would
be the difference between the appraised value of your home and the amount you
still owe on your mortgage. These loans are good for home additions, home
consolidation. The interest rate is often tax deduct bents or debt low compared to
other loans and also fairly.
In everyone's life buying a home is a costly affair. Presently, with soaring
prices it has become very hard to buy a dream home without availing home loan.
10. From last decade, the demand for home loans is increasing exponentially in India.
A home loan not only offers a fund at cheaper costs, it also has an added
advantage like attractive Tax benefits. The following are the different types of
home loans offered in the Indian housing market.
Land purchase Loan:-This Land purchase loan is offered to purchase a plot
of land on which a borrower wishes to build a house. The interest rate of this loon
is same as home loan, but there is no availability to claim a tax deduction. Lenders
offer almost 80-85 percent of the land price. The hanks that we offering such
types of loan precisely ICICI Bank, HDFC Bank and Axis Bark.
Home Purchase Loan:-This type of loan is commonly available home loan
for every individual. This lan can be taken for purchasing a new residential ps,
old house sale property from the previous owner. This type of is offered at fixed
interest rates and floating interest Usually, in this type of loans lenders finance up
to 35 percent of the property price and one can claim a tax deduction on the
interest paid. All leading hanks and housing finance companies offer such type
of loans.
Home construction Loan:-This type of loan is available to an individual
who plans to build a home instead of buying a constructed home. Compared to
commonly avail home loans, the appnival process and application form of these
is imeshat different. Before applying the Home construction Iran, the horrower
has to estimate the total cut required for the construction of a home. After
analysing all the aspects, the lender will take a decision to endorse the loan. The
total price of the home will be calculated by considering the cost of the land, if
the land has been thought within a year. The banks that are offering such types of
home precisely UCO Bank, Canara Bank and Bank of Baroda.
Home Improvement Loans:-This type of home loan is available for
individuals who already own a house and planning for renovation. It includes
11. internal and external painting, electrical work, major repain, construction of
overhead talk construction of underground and many others. Hanks that provide
such type of home improvement loans are Vijaya Bank, ICICI Bank and Cal Bank
of India.
Home Extension Loan:-When individual plans to expand/extend the existing
home like constructing extra floor, balcony, new room and bigger bed/bath room
then the Home Extension Loans are useful. Some lenders usually offer Home
improvement loan for such purposes. Banks that provides home expansion loans
precisely Bank of Baroda, HDFC Bank and many others.
Home conversion Loan:-The individual who already bought a home by
taking a home loan, but now wish to buy another home can pick a home
conversion loan. Through this type of loan, borrower can fund the purchase of
new home by transferring existing home loan to the new home. These loans are
Comparatively quite expensive and there is no need to repay the loan for the
previous home. This can be offered by HDFC Bank.
Advantages:- Below are the advantages of getting a loan. These are also the
reasons why many apply for it:
1. There is a loan for just about anything. If you are in need of money to purchase
a house, you can apply for a housing loan. If you need a car, you can apply for a
car loan. With all the loans available, you will be able to purchase everything you
need.
2. It helps a person afford an expensive purchase. All of us wish to acquire a
property. However, we do not have the amount of money to make the purchase.
Loans allow us to do this. They lend us the money so that we can finally afford
our desired property.
12. 3. Payment is staggered, which makes it affordable. This enables the person to
pay off the loan gradually. If a person has chosen a good deal, he should be able
to finish paying off the loan in the time specified.
4. One gets the funding he needs. If a person wants to start a business, he can do
so by applying for a business loan. He does not have to wait for his savings to
build up before he can start his own business. They can also use the amount they
loan for investment purposes. Getting a loan is very helpful to start building your
dream. However, you have to be very careful with your decisions. This is because
of the problems you will possibly encounter if you mismanage your loans and
other debts. If you have multiple loans, make sure to manage it well. Use a debt
consolidation loan calculator and check if it is better to consolidate all your loans.
Make sure that you manage your loans from the start. Keep in mind that loans
have disadvantages too.
PROCESS OF GRANTING A LOAN:-
● Loan application
● Submission of Required documents
● CIBIL check
● Approval of loan
Loan and advance process:-Land loan is a financing option meant to be
used for the purchase of a end. There are a number of public and private sector
banks and other n-banking financial institutions, which give loans for land
purchase Plot Loan.
Eligibility Criteria: You should have completed 21 years of age.
You should have a regular income either through your job or a business,
which can be validated by banks on the basis of Income Taxes or revenues.
13. Loan Amount:-Maximum 80-85% of the cost of the plot, depending on which
banking/financial organization offers you loan.
May vary depending on the loan eligibility of the customer.
Loan Tenure:-It varies from bank to bank that ranges from 10 to 15 years.
However, some banks especially the private ones allow the tenure to be less than
or equal to 5 years and the tenure is fixed based on the current income. Most of
the financial institutions are somewhat reluctant in granting a loan-tenure for 10
year and information on tenure can be sought by bank officials.
Process for Plot Loan:-At first, you have to fill as application form with
passport size photos for applying the loan in a respective bank and submit it with
proper documents. Bank will charge you 1-2% as processing fees.
Documents required by bank for land loan:-
1. Documents related to the customer:-
● Two passport-size photos, PAN Card, Passport, Employee ID (if you
are a salaried individual), Visiting card.
● Residential Address Proof: Ration Card, Telephone Bills (Land
line, some banks only accept bills of government-run telecom
operators' like BSNL,MTNL etc.), Mobile Bill (Post-paid) or letter
from employer to confirm your residential address.
● Last 4 months pay slips along with latest CTC (Cost-To-Company).
● Appointment letter, relieving letter/experience letter (if your present
employment is less than 3 years) .
● Form 16 for last 2 years along with acknowledgement from IT .
● Bank Statement of all accounts for 6 months. One cheque from
salary account for processing fees.
14. ● Qualification proof.
2. Documents related to plot:-
● Mutation Register Extract
● Sale Deed
● Encumbrance certificate
● Document/Title deed in the name of the vendor/buyer
● NOC from the State Pollution Control Board
● Endorsement from the office of the competent authority
confirming that the land is free from tenancy claims
● Tax receipts for taxes paid by the owner of the plot of land
● Layout plan, if it is a private layout
● Land record for the plot of land
Conform to legal requirements or comply with legal process:-
Protect and defend Adarsh cooperative Bank's or its Affiliates' rights,
interests Enforce the terms and conditions of the products or services; or Act to
protect the interests of Adarsh cooperative Bank, its Affiliates, or its members,
constituents or of other persons.
The customers shall not disclose to any other person, in any manner
whatsoever, any information relating to Adarsh cooperative Bank or its affiliates
of a confidential nature obtained in the course of availing the services through the
Website. Failure to comply with this obligation shall be deemed to be a serious
breach of the terms herein and shall entitle Adarsh cooperative Bank or its
affiliates to terminate the services, without prejudice to any damages, to which
the customer may be entitled otherwise.
15. Adarsh cooperative Bank will limit the collection and use of customer
information only on a need-to-know basis to deliver better service to the
customers. Adarsh cooperative may use and share the information provided by
the customers with its Affiliates and third parties for providing services and any
service-related activities such as collecting subscription fees for such services,
and notifying or contacting the customers regarding any problem with, or the
expiration of, such services. In this regard, it may be necessary to disclose the
customer information to one or more agents and contractors of Adarsh
cooperative Bank and their sub-contractors, but such agents, contractors, and sub-
contractors will be required to agree to use the information obtained from Adarsh
cooperative Bank only for these purposes.
The Customer authorizes Adarsh cooperative Bank to exchange, share, part
with all information related to the details and transaction history of the
customerstoitsAffiliates/banks/financialinstitutions/creditbureaus/agencies/parti
cipation in any telecommunication or electronic clearing network as may be
required by law, customary practice, credit reporting, statis.
Information:-
Helping you to choose products and services, which meet your needs
Before you become a customer, we will Give you clear information explaining
the key features of the services and products you tell us you are interested in Give
you information on any type of account facility which we offer and may suit your
needs Tell you what information we need from you to prove your identity and
address and to comply with KYC requirements, and norms, legal and regulatory
Request for additional information about you and your family to build a database
but such information can be furnished by you only if you wish and we will not
compel you to give this information for opening your account.
16. We will tell you if we offer products and services in more than one way
[for example, through ATMs on the internet, over the phone, in branches and so
on] and tell you how to find out more about them. Once you have chosen an
account or service, we will tell you how it works.
When you open a single account or a joint account, we will give you
information on your rights and responsibilities. We Offer nomination facilities to
all deposit accounts (i.c. account opened in individual capacity) and all safe
deposit locker hirers (i.e. individual hirers)
LOANS AND ADVANCES, STATUTORY AND OTHER
RESTRICTIONS.
STATUTORY RESTRICTIONS:-
loans made by banking companies to one another for the purpose of
purchasing furniture, car, Personal Computer or constructing/acquiring house for
personal use, festival advance with the prior approval of RBI loans or advances
to the Agricultural Finance Corporation Ltd loans or advances against
Government securities, life insurance policies or fixed deposit Exemption-
"Loans or advances" shall not include any transaction which the Reserve Bank
may specify by general or special order as not being a loan or advance. They
include Advances to banks Directors.
REGULATORY RESTRICTION:-
Yarn and fabric cotton textiles sugar/gur/khandsari, raw cotton and kapas,
selected major oil seeds indigenously grown food grains i.e. cereals and pulses,
The commodities treated as sensitive are To prevent speculative holding of
essential commodities with the help of bank credit and the resultant rise in their
prices Restrictions on Advances against Sensitive Commodities under Selective
17. Credit Control (SCC) Banks should not extend finance for setting up of new units
consuming/producing the ODS As per Montreal Protocol, ODS are required to
be phased out. Restrictions on Grant of Financial Assistance to Industries
Producing Consuming Ozone Depleting Substances (ODS).
RESTRICTIONS ON OTHER LOANS AND ADVANCES 13:-
Margin:-- Banks should maintain a minimum margin of 50 % of the market value
of equity shares / convertible debentures held in physical form and 25% if in
dematerialized form Amount of advance – should not exceed the limit of Rupees
ten lakhs per individual if the securities are held in physical form and Rupees
twenty lakhs per individual if the securities are held in dematerialized form
Purpose of the Loan-To meet contingencies, personal needs, subscribing to new
or rights issues or purchase in the secondary market Advances to individuals.
LOANS AND ADVANCES AGAINST SHARES, DEBENTURES
AND BONDS:-
A uniform margin of 50 % shall be applied on all advances/financing of
IPOs/issue of guarantees on behalf of share and stockbrokers. Banks may grant
working capital facilities to stock brokers registered with SEBI and who have
complied with capital adequacy norms prescribed by SEBI Ceiling of Rs 10
lakh/Rs 25 lakh for individuals is not applicable and the advances would be need
based they may be provided need based overdraft facilities / line of credit against
shares and debentures held by them as stock-in-trade Banks and their subsidiaries
should not undertake financing of Badla transactions. Advances to Share and
Stock Brokers/ Commodity Brokers.
18. LOANS AND ADVANCES AGAINST SHARES, DEBENTURES
AND BONDS:-
Banks may accept, as collateral for the advances to the Market Makers,
scripts other than the scripts in which the market making operations are
undertaken. A minimum cash margin of 25 per cent (within the margin of 50%)
shall be maintained in respect of guarantees issued by banks for capital market
operations. A uniform margin of 50 per cent shall be applied on all advances
financing of IPOs issue of guarantees on behalf of market makers Market Makers
approved by stock exchange would be eligible for grant of advances by scheduled
commercial banks Bank Finance for Market Makers
LOANS AND ADVANCES AGAINST SHARES, DEBENTURES AND
BONDS:-
To avoid these practices the RBI has banned issuances of FDRs (fixed
deposit receipts) or any other term deposit receipts. Loans and Advances were
obtained from other banks using these fake term deposit receipts. However for
new banks/Fls trying to enter the MMMFS market, have to take necessary
approval from the RBI before approaching the SEBI for clearance. The Banks are
now guided by SEBI regulations.
MONEY MARKET MUTUAL FUNDS
ADVANCES TO AGENTS/IN:-
For the CDs held by mutual funds these rules have been relaxed until
further notice. They are also not permitted to buy-back their own CDs before
maturity. Banks cannot grant loans against CDs. These borrowers may not
actually require the funds or the funds might to routed for illegal operations.
Banks are restricted to be a party to unethical practices of raising money through
agents or intermediaries, to meet the need of borrowers.
19. TERMEDIARIES:-
For projects undertaken by public sector units, term loans may be
sanctioned only for corporate entities Banks carry out appraising technical
feasibility, financial viability and bank ability of projects, with reference to the
risk analysis and sensitivity analysis. The amount sanctioned should be within the
overall ceiling prescribed by.
TYPES OF FINANCING BY BANKS:-
Undertakes normal credit appraisal, monitoring and follow-up of the
project. Provided the bank issuing the guarantee takes a funded share in the
project at least to the extent of 5 per cent of the project cost. Banks are permitted
to issue guarantees favouring other lending institutions in respect of infrastructure
projects.
INTER-INSTITUTIONAL GUARANTEES:-
Finance extended should be against the security of the assets of the
borrowing company and not against the shares of that company. Bank finance
should be restricted to 50% of required for acquiring the promoters stake in the
company. The promoters/ directors of such companies should not be a defaulter
to banks/ Fls.
FINANCING PROMOTERS EQUITY:-
The Board of Directors should reckon the integrity and robustness of the
bank's risk management systems and, accordingly, put in place a well laid out
policy in this regard. Banks would need to exercise due vigil in this regards. The
long-term financing of infrastructure projects may lead to asset-liability
mismatches.
ASSET-LIABILITY MANAGEMENT:-
20. The guarantee shall be extended only in respect of borrower constituents
and to enable them to avail of-additional credit facility from other
banks/Fls/lending agencies. Periodical reviews. Reporting system. Delegation of
powers. Nature and extent of security and margins. The Board of Directors should
address following issues,
Banks have freedom to decide their own guidelines for assessing /
sanctioning working capital limits of borrowers, Banks should monitor the
exposure on the guaranteeing bank/F on a continuous basis and ensure strict
compliance with the prudential limits prescribed by RBI.
LENDING BANKS:-
In such cases, banks may discount bills drawn by beneficiary only if the
bank has sanctioned regular fund based credit facilities Sometimes, a beneficiary
of the LC may want to discount the bills with the LC issuing bank itself. Banks
should not, extend fund-based (including bills financing) or non-fund based
facilities like opening of LCs, providing guarantees and acceptances to non-
constituent borrower and non constituent member of multiple banking
arrangement.
Such loans to be granted by the bank, may be covered under the policy
framed by the banks Board. However, specially minted gold coins sold by banks
cannot be treated as "bullion" or "primary gold" and hence there is no objection
to the bank granting loans against the coins Banks should not grant any advance
against bullion/ Primary gold.
ADVANCES AGAINST BULLION GOLD
21. ADVANCES AGAINST GOLD ORNAMENTS & JEWELLERY&
The gold borrowings will be subject to normal reserve requirements. 30 Interest
charged to the borrowers should be linked to the international gold interest rate.
Banks would find granting of advances against the security of such hallmarked
jewellery safer and easier. Hallmarking of gold jewellery ensures the quality of
gold used in the jewellery as to cartage, fineness and purity.
GOLD LOANS:-
The stand-by LC/BG shall be extended on behalf of domestic jewellery
manufacturers and shall cover at all times the full value of the quantity of gold
borrowed by these entities. Banks should ensure end-use of gold loans to
jewellery manufacturers and adhere to KYC guidelines. The loan will be subject
to capital adequacy and other prudential requirements .
Stand-by LC/BG issued by the non- nominated banks will be subject to
extant capital adequacy and prudential norms. The stand-by LC/BG facilities will
be denominated in Indian Rupees and not in foreign currency. The bank issuing
the stand-by LC/BG should do so only after carrying out proper credit appraisal.
The bank should ensure that adequate margin is available to it at all times
consistent with the volatility of the gold prices.
LOAN SYSTEM FOR DELIVERY OF BANK CREDIT:-
1) Salient features of these guidelines are as follows
2) Sanction of working capital limits based on various factors.
3) Various assessment criteria for working capital limit
4) Stipulate reasonable amount as promoters' contribution towards margin.
5) obtain collateral security wherever available
22. 6) Rate of Interest
7) Banks may evolve tailor-made follow up system for such advances 36 Banks
are
GUIDELINES FOR BANK FINANCE:-
The aforesaid instructions would not apply in the case of bank finance to
the successful bidders under the PSU disinvestment program of the Government,
subject to the following:
Approved by their Board of Directors
PROJECT FINANCE PORTFOLIO OF BANKS:-
The following exemptions are, however, made:
1. Finance subsidy receivable under the normal Retention Price Scheme (RPS)
for periods upto 60 days in case of fertilizer industry.
2. Grant finance against receivables from Government by exporters Banks
should not extend bridge loans against amounts receivable from Central/State
Governments by way of subsidies, refunds, reimbursements, capital
contributions, etc.
BRIDGE LOANS AGAINST RECEIVABLES FROM GOVERNMENT :-
This would enable the transferee bank to be fully aware of the irregularities,
if any, existing in the borrowers account(s) with the transferor bank. Before
taking over an account, the transferee bank should obtain necessary credit
information from the transferor bank as per the format Board approved policy
with regard to takeover of accounts from another bank.
TRANSFER OF BORROWER ACCOUNTS FROM ONE BANK
TO ANOTHER:-
23. Timely changes in terms Loan appraisal and terms/conditions-proper
assessment, convey information, written agreement Applications for loans and
their processing comprehensive, systematic, reasonable period of time, reason
for rejections.
GUIDELINES ON FAIR PRACTICES CODE FOR
LENDERS :-
Banks and financial institutions have the freedom of drafting the Fair
Practices Code and should also be put on their website and given wide publicity.
General Interfering in the affairs of the borrowers, discrimination, undue
harassment Request for transfer of borrowed account should be conveyed within
21 days from the date of receipt of request. Post disbursement supervision
constructive, notice to borrowers, release all securities conditions.
A certificate course for Direct Recovery Agents Properly trained No use of
uncivilized, unlawful and pensionable behaviour or recovery process Restrictions
in forwarding cases to recovery agencies Inform the borrower the details of
recovery agency firmy Due diligence process Engaged by the bank.
GUIDELINES ON RECOVERY AGENTS ENGAGED BY
BANKS:-
Periodical Review of recovery agents. Adherence from employees
Imposing a ban on a bank from engaging recovery agents regarding violation of
the above guidelines Utilize the services of the credit counsellors Use of forum
of Lok Adalats Re-possession clause is legally valid Legal remedies without
intervention of the Courts.
Research papers to be surveyed
24. ● Sudhir m. (2005) " retail banking in indie the paradigm shift", chartered
financial analyst, icfai press, Hyderabad, vol.xi.no.2pp 63-64.
● Lsgupta(1969) changing structure of industrial finance in indie, the
impact of institutional finance, clarendon press, oxford N.ambegoakar
(1969) "working capital requirements an availability of bank credit Indian
processing and manufacturing industries." Reserve bank of India bulletin
vol.xxiii no10
● K.s.rrao (1988) " demand for commercial bank credit 1970-71 to 1984-85
a study of selected Indian industries" m.phil thesis, cdsthiruvanthapuram.
● V.vdivatia (1979) "capital formation and is financing in the private sector
1961-62 to 1975-76" the journal of income and wealth, April 118-152
● S.adve (1980)" financial practices in India corporate sector, inter group
and inter size differences." Economic and political weekly, finance in
India, February 23.
● Lsgupta (1969) changing structure of industrial the impact of
international finance. Clarendo press oxford.
● M.s joshi (1965) financial intermediaries in India. Malkhanlal& sons
pvt.ltd.bombay
● www.ssrn.com
● www.rbi.org
● www.emeraldinsight.com
● www.banknet.co.in
RESEARCH METHODOLOGY
RESEARCH INTRODUCTION:-
25. Research is an art of scientific investigation through search for new facts
in any branch of knowledge. It is a moment from known to unknown.
● Research always starts with a question or problem.
● Its purpose is to find answers to question through the application of the
scientific method.
● It is a systematic and intensive study directed towards more complete
knowledge of the subject studies
As Marketing does not address itself to basic or fundamental Question, it does
not qualify as basic research. On the contrary, It tackles problem, which seems to
have immediate commercial Potential. Marketing research should be regarded as
applied Research. We may also say that marketing research is of both Types-
problem solving and problem oriented.
Marketing research of customer satisfaction is a systematic and Objective
study of the problem pertaining to the marketing of Services.
RESEARCH PROCESS :-
Research process consists of number of interrelated steps which are follows:
1. Defining a research problem:-
Defining a research problem basically knows what actually is be done.
During my research I faced the problem of lack of personal communication
between customers of BCCS.
2. Method of Inquiry:-
Survey method was adopted based on collection of primary This has been
accomplished through the questionnaire method.
26. 3. Research Design:-
It may be defined as the specification of methods for acquiring the needed
information. It is a plan or organizing framework for doing the study and
collecting the data. EXPLORATORY RESEARCH was under taken on the
subject matter for seeking information. Exploratory research is meaningful in any
situation where researcher does not have enough understanding to proceed with
research.
4. Sample design:-
Sample is a sub set of the relevant population. The data obtained was used
for making interferences about larger population. It gives greater economy of
efforts as relatively small staff.
SAMPLE SIZE:-
A sample size is the number of customers to be included sample, The
sample was taken to obtain general opinion about the ices of BCCS Ltd. and their
compatibility with other companies. mple size of my research is 50 that is 50
customers filled up questionnaire.
SAMPLING PROCEDURE:-
Convenience sampling was chosen where each and every item in the
population has an equal chance of inclusion.
Data Collection:-
A compressive questionnaire having both open as well as close ded
questions was developed for market survey. Data was collected om the customers
27. on the basis of queries in the questionnaire, data which used in the research is
PRIMARY DATA.
Analysis and interpretation of data:-
he data collected from the questionnaire was duly edited, coded and
bulleted. The analysis of sampling procedure and data collection chnique was
undertaken first.
Research report:-
Finally a report was drafted taking into account all he relevant facts and
findings.
LIMITATIONS OF THE STUDY
● Present study is restricted to Adarsh cooperative BANK because of which
observation and study is quite limited and could not be explored to various
areas.
● As the study was done in the limited time the investigator could not select
a sufficiently large sample for the study.
● Study was limit to a number of customers only and thus it will provide a
comprehensive result about the topic under the study.
ANALYSIS OF DATA
This survey was conduced on 60 customers of ADARSH COOPERATIVE
BANK and The following data Has been evaluated from it.
1. INCOME GROUP
28. INCOME PER ANNUM NO. OF CUSTOMERS
BELOW 200000 15
200000 – 500000 32
ABOVE 500000 13
The above graph evaluate the annual income of 60 customers on whom the
survey as conducted.
2. THE RATE AT WHICH BY BANK IS OFFERING LOAN IS
BETTER THAN THAT OF THE OTHER BANK ?
Series 3
Series 2
Series 1
29. From the above pie chart we can say that most of the customers like the rate
offered by bank on their various services, as we know the rate offered by banks
are decided by R.B.I and the banks have very little power to fluctuate them and
fix them. Yet their are minute fluctuations on the rates offered by various banks.
3. MY BANK PROVIDE ZERO INTEREST LOAN FACILITIES?
Chart Title
STRONGLY AGEE
AGREE
NEUTAL
DISAGEE
STONGLY DISAGEE
30. Zero interest loan facility is a kind of loan usually provided by banks on
educational loan. As the RBI suggest that educational loan should be interest
free or the interest charged on them should be low in rate. When the following
thing was asked from the customers of Adarsh cooperative bank many of them
agreed to this point but some believe that the terms and conditions set by the
bank doesn't make it a complete zero interest plan.
4. MY BANK IS APPROPRIATELY FOLLOWING THE INTEREST
RATE GIVEN BY RBI?
Chart Title
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
31. Majority of customers agreed on this point and believed that the bank is
appropriately following the interest rates or the nominal rates offered by the
RBI despite their were some who complaint about it.
CONCLUSION
Chart Title
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
32. From the following research which was being conducted on loan facilities
provided by bank and its relation to customer satisfaction one can conclude that
both of these things run hand to hand. a customer plays a vital role in banking
field as he acts both as a lender and borrower of a bank. We can also call him the
owner of the bank. All the banking services are implemented as such to impress
the customer. Every bank tries to increase his number of customer as it is a part
of every business. But to increase customers is not only sufficient I is very
necessary to maintain them and to maintain them one has to serve them with the
best in quality, as what it matters is quality not quantity. Today's era is all about
making money and investing it at right place, therefore the bankers act as an agent
to fulfil these needs as one can easily get loans for the things they demand to have
but the banks have to keep several things in mind like the RBI regulations, the
immense competition in market etc. as to be the best they have to serve the
customer with the best of their services.
Banks play a very vital role in our society as the entire economy runs on
them and the services provided by them, thus we can say that they are the
backbone of our economy. Adarsh cooperative Bank is among one such bank who
is serving his customers with the best in quality and services and by its various
loan facilities it is trying to give support to numerous of projects and is helping
many of the customers by providing them with its personal loans. Thus, one can
say a bank is incomplete without its customer and customer is incomplete without
the service of its banker.
33. RECOMMENDATIONS AND SUGGESTION:-
Improved co-ordination:-
Better co-ordination among purchase, production, marketing finance
department and effective communication will help in achieving greater efficiency
in working capital management.
Prompt payment by customers:-
Prompt payment by customers can be ensured by prompt billing. What the
customers has to pay and the period of payment should be notified accurately and
in advance. The use of mechanical device for billing along with the enclosure of
a self-addressed return envelope will speed up payment by customers.
Discounting policy should be liberalized by giving more cash discount to
the customers.
Part-1
"loan and advance"
Part-II
"Customer satisfaction in bank"
Bank is a very important part of loan .different types provides loan.
Customer satisfaction is most importance in the very field.
