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SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Symbiosis Bhavan, 1065-B

Gokhale Cross Road, Model Colony, Pune-411016 Website: www.scdl.net Name of the
Program : Post Graduate Diploma in Business Administration Specialization : FINANCE
Name of the Student : Anitha V Registration Number : 201701365 Active Email ID :
[email protected] Mobile Number : +919483667928 Name of Topic :
PROJECT REPORT ON “A STUDY ON PERSONAL LOANS OF HDFC BANK” DECLARATION
I Anitha V a student of MBA respectively hereby declare that the Research Project
Report on “A study on personal loans of hdfc bank” is the outcome of my own work and
the same has not been submitted to any other University/ Institute for the award of any
degree or any Professional diploma. (Signature of Student) Date: ………………… Place:
………………...

CERTIFICATE BY THE GUIDE Certified that the work incorporated in this Project Report
“A study on personal loans of hdfc bank” submitted by Anitha V is her original work and
completed under my supervision. Material obtained from other sources has been duly
acknowledged in the Project Report (Signature of Guide) Date: ………………… Roll Number
:- 202009283 Place: ………………..

PROJECT REPORT ON “SUPPLY CHAIN MANAGEMENT ON INTERNATIONAL MARKET”

Submitted to: SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) IN PARTIAL
FULFILMENT, OF POST GRADUATE DIPLOMA IN BUSINESS ADMINISTRATION (PGDBA )
Submitted By: Ankit Sharma PGDBA - SYMBIOSIS CENTRE FOR DISTANCE LEARNING
(SCDL) ACKNOWLEDGEMENT ACKNOWLEDGEMENT We are delighted to present the "
Finance " project study as part of the "Post-Graduate Diploma in Business
Administration" Programme.
We'd like to thank all the people who have given us constant support. I express my
sincere appreciation to the Director and Professor of the Project Guide and to all those
who have directed and supported us indirectly in planning this project.

We also want to extend our appreciation to all College of Management staff and our
colleagues, who gave moral support, a conducting work atmosphere and the much-
needed inspiration to finish the project in time and a special thank you to my parents
who are integral to the project. Thank you. Table of Contents 1.EXECUTIVE SUMMARY 9
2. OBJECTIVE AND SCOPE OF THE PROJECT 10 2.1RELEVANCE OF THE STUDY 10 3.
COMPANY PROFILE 11 3.1ORIGIN OF THE ORGANIZATION 11 3.2

GROWTH AND DEVELOPMENT OF THE ORGANIZATION 12 3.3 LOGO AND TAGLINE OF

HDFC BANK 12 3.4PRESENT STATUS OF THE ORGANIZATION 12 3.5 BUSINESS FOCUS
13 3.6 CAPITAL STRUCTURE 13 3.7 DISTRIBUTION NETWORK 13 3.8 MANAGEMENT 15
3.9 SUBSIDIARY AND ASSOCIATE COMPANIES 15 3.10 HDFC BANK business strategy
emphasizes the following: 16 3.11 FUNCTIONAL DEPARTMENTS OF THE
ORGANIZATION 17 3.12 PRODUCT SCOPE: 18 3.13 PRODUCTS AND SERVICES AT A
GLANCE 19 3.14 SWOT ANALYSIS OF HDFC BANK 24 4. THEORITICAL BACKGROUND 25
4.2 TYPES OF PERSONAL LOANS 28 4.3

PERSONAL LOAN FEATURES 37 4.4How to apply for a personal loan 39 4.5

DOCUMENTATION – 39 4.6 CHARGES APPLICABLE BEFORE AND AFTER THE PERSONAL
LOAN – 41 4.7 PERSONAL LOAN : ELIGIBILITY CRITERIA :- 44 4.8 PERSONAL LOAN
RATES AND FEES 45 4.9 LOAN PROCEDURE :- 48 5. RESEARCH METHODOLOGY 51 5.1
RESEARCH DESIGN AND METHODOLOGY 51 5.2 SCOPE OF THE STUDY 51 5.3
METHODS USED FOR DATA COLLECTION ARE 52 5.4 TOOLS FOR DATA COLLECTION 52
5.5

SAMPLING METHOD USED: 53 5.6 SAMPLE SIZE: 53 5.7 SAMPLING METHOD USED 53
5.8 SCALE: 53 5.9 AREA OF SURVEY: 53 6. DATA ANALYSIS 54 6.1) TABLE SHOWING
DISTRIBUTION OF AGE - 54 6.2) TABLE SHOWING DISTRIBUTION OF GENDER 55 6.3)
TABLE SHOWING THE DISTRIBUTION OF THE MONTHLY SALARY 57 6.4)THE
IMPORTANCE OF THE INTEREST RATE ACCORDING TO THE CUSTOMERS- 58 6.5) THE
IMPORTANCE OF PROCESSING FEES AND TIME IN HDFC BANK ACCORDING TO
CUSTOMRES 59 6.6)TABLE SHOWING SIZE OF THE EASY MONTHLY INSTALLMENT- 61 7.
SUMMARY OF FINDINGS 62 8. CONCLUSION 63 9. RECOMMENDATIONS- 64 10.
BIBLIOGRAPHY 65 1.EXECUTIVE SUMMARY Banks extend loan facilities by way of fund
based and non fund based facilities.

Fund based facilities include term loans, cash credit, bills discounted and bills purchased,
demand loans and overdrafts. Non fund based includes inland and foreign letters of
credit, issuance of guarantees, deferred payment guarantees, bills acceptance facility etc.
Efficient management of loans and advances portfolio has assumed greater significance
as it is the largest asset of the bank having direct impact on its profitability.

Credit appraisal is also an important function of the bank. It is the process of appraising
the credit worthiness of a loan applicant and to evaluate the economic viability of the
project. I have undertaken a study at THE HOUSING DEVELOPMENT FINANCE
CORPORATION LTD. (HDFC BANK) , BOAT CLUB BRANCH,PUNE . The study is on
“PERSONAL LOAN OF HDFC BANK”.

The main focus of my project is on the appraisal of loans and to keep a check on the
credit worthiness of the borrower and the financial & economic viability of the loan
proposed. The whole credit appraisal process has been explained in various steps that
are taken by banks in evaluating a borrower. The objective of the project is to know the
loan proposal system of HDFC bank.The analysis of any project consists of two parts -
Internal External Internal is extract of internal analysis , consisting of calculation of tenor
as per norms ,calculation of eligibility with reference to income shown by an applicant,
then if approved, to calculate the equated monthly installments & actual disbursement.

External analysis involves collection of documentary proofs regarding income profile,

residence verification, repayment capacity and the end use. 2. OBJECTIVE AND SCOPE
OF THE PROJECT The objective of the project “A STUDY ON PERSONAL LOAN OF HDFC
BANK” is divided into two parts: Primary Objective:The main objective of the study is to
find out the tariff charges, percentage of funding, tenure of personal loan and other
charges charged by other banks in comparison to HDFC Bank.

The aim of the study is to help HDFC to know where it lacks in Loans and how far the
performance of other banks is better, so that HDFC figure out the common problems
being faced by customers while dealing in the Loan Department so that further HDFC
can improve its services and schemes offered by them to their customers. Secondary
objective: The secondary objective of the study is to find out the extent to which
customer expectations match HDFC performance in Loan services.

This was done to help HDFC to recognize their faults in customer dealing .As in this
competitive world customer satisfaction is more important than huge profits so
customer satisfaction survey will help it in finding out its position. To conclude the
objectives can be framed as follows :- To study the loan policies of the Bank. To study
the credit appraisal.
To study the various types of loans and advances. To study the documents required for
loan sanctioning procedure. To study the loan sanction producers. To study the various
types of borrowers. 2.1RELEVANCE OF THE STUDY The project work deals with the study
of applicant’s capability to repay the credit and to appraise the economic and financial
viability of the credit undertaken. The loan proposal is appraised financially,
economically and technically so as to confirm the financial soundness of the borrower.

It gives a practical insight of the procedures followed by the banks in ascertaining the
credit worthiness of the borrower. In today’s market scenario, one of the most critical
areas to focus on is to protect the bank from bankruptcy. In such conditions Credit and
Risk Department plays a key role in growth of banks.

Any delay in realizing the receivables would adversely affect the working capital, which
in turn effects the overall financial management of a firm. No firm can be successful if
it’s over dues are not collected, monitored and managed carefully in time. 3. COMPANY
PROFILE / 3.1ORIGIN OF THE ORGANIZATION HOUSING DEVELOPMENT FINANCE
CORPORATION LTD.

is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market
leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling
units.

HDFC has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment. 3.2 GROWTH AND DEVELOPMENT OF THE
ORGANIZATION HDFC Bank is headquartered in Mumbai.

The Bank at present has an enviable network of over 1400 branches spread over 600
cities across India. All branches are linked on an online real-time basis. Customers in
over 120 locations are also serviced through Telephone Banking. The Bank's expansion
plans take into account the need to have a presence in all major industrial and
commercial centers where its corporate customers are located as well as the need to
build a strong retail customer base for both deposits and loan products.

The Bank also has a network of about over 2000 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders. 3.3 LOGO AND TAGLINE OF HDFC BANK LOGO - / TAGLINE
– “ bank aapki muthi mein” 3.4PRESENT STATUS OF THE ORGANIZATION The Housing
Development Finance Corporation Limited (HDFC) was amongst the first to receive an
in-principle approval from the Reserve Bank of India (RBI) to set up a bank in the private
sector, as part of the RBI’s liberalization of the Indian Banking Industry in 1994.

the bank was incorporated in August 1994 in the name of HDFC Bank Limited. With its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. Promoter- HDFC is India’s premier housing finance
company and enjoys an impeccable track record in India as well as in international
markets.

Since its inception is 1977, the Corporation has maintained a consistent and healthy
growth in its operations to remain a market leader in mortgages. 3.5 BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite.

The bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People. 3.6 CAPITAL STRUCTURE The authorized capital of
HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2
billion).

The HDFC Group holds 19.4% of the bank's equity and about 17.6% of the equity is held
by the ADS Depository (in respect of the bank's American Depository Shares (ADS)
Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the
bank has about 570,000 shareholders.

The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange.
The bank's American Depository Shares are listed on the New York Stock Exchange
(NYSE) under the symbol 'HDB'. 3.7 DISTRIBUTION NETWORK HDFC Bank
headquartered is in Mumbai. The Bank at present has an enviable network of over 1229
branches spread over 444 cities across India.

All branches are linked on an online real-time basis. Customers in over 120 locations are
also serviced through Telephone Banking. The Bank's expansion plans take into account
the need to have a presence in all major industrial and commercial centers where its
corporate customers are located as well as the need to build a strong retail customer
base for both deposits and loan products.

Being a clearing/settlement bank to various leading stock exchanges, the Bank has
branches in the centers where the NSE/BSE has a strong and active member base. The
Bank also has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders. STRONG NATIONAL NETWORK 3.8 MANAGEMENT
Mr.Jagdish Kapoor took over as the bank’s Chairman in July 2001, Prior to this,
Mr.Kapoor was a Deputy governor of the Reserve Bank of India. The Managing Director,
Mr.Aditya Puri, has been a professional banker for over 25 years.

And before joining HDFC Bank in 1994 was heading Citibank’s operations in Malaysia.
The Bank’s Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executive representing HDFC are also on the Board Senior banking professionals with
3.9

SUBSIDIARY AND ASSOCIATE COMPANIES The subsidiaries of HDFC consists of 1. HDFC

Bank 2. HDFC Mutual Fund 3. HDFC Standard Life Insurance Company 4. HDFC Realty 5.
HDFC Chubb General Insurance Company Limited. 6. Intel net Global Services Limited 7.
Credit Information Bureau (India) Limited 8. Other Companies Co – Promoted by HDFC
HDFC Trustee Company Ltd. GRUH Finance Ltd. HDFC Developers Ltd. HDFC Venture
Capital Ltd.

HDFC Venture Trustee Company Ltd HDFC Securities Ltd. HDFC Holding Ltd. Home Loan
Services India Pvt. Ltd. 3.10 HDFC BANK business strategy emphasizes the following:
Increase market share in India’s expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service.

Leverage our technology platform and open scalable systems to deliver more products
to more customers andtocontroloperating costs. Maintain current high standards for
asset quality through disciplined credit risk management.Develop innovative
productsand services thatattractthetargeted customers and address inefficiencies in the
Indian financial sector.

Continue to develop products and services that reduce bank’s cost of funds. Focus on
high earnings growth with low volatility. 3.11 FUNCTIONAL DEPARTMENTS OF THE
ORGANIZATION The bank has three key business areas: 1. Wholesale Banking Services
Here our target market is primarily large, blue-chip companies and to a lesser extent,
emerging mid-sized corporate.

For these corporate, we provide a wide range of services, including working capital
finance, trade services, transactional services, cash management, etc. We are a leading
provider of structured solutions, which combine cash management services with vendor
and distributor finance, for facilitating superior supply chain management for our
corporate customers.

We are also recognized as a leading provider of cash management and transactional

banking solutions to mutual funds, stock exchange members and banks. 2. Retail
Banking Services The objective of the Retail Bank is to provide our target market
customers a full range of financial products and banking services, giving the customer a
one-stop window for all his/her banking requirements.

The products are backed by world-class service and delivered to the customers through
the growing branch network, as well as through alternative delivery channels like ATMs,
Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for
high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services
programs have been designed keeping in mind needs of customers who seek distinct
financial solutions, information and advice on various investment avenues.

We have a wide array of retail loan products including Auto Loans, Loans against
Securities, Personal Loans and Loans for Twowheelers. 3. Treasury Operations Within this
business, the bank has three main product areas a) Foreign Exchange and Derivatives
b)Local Currency Money Market & c) Debt Securities and Equities. With the liberalization
of the financial markets in India, corporate need more sophisticated risk management
information, advice and product structures.

These are provided through the bank's Treasury team. The Treasury business is
responsible for managing the returns and market risk on the bank's investment
portfolio. 3.12 PRODUCT SCOPE: HDFC Bank offers a bunch of products and services to
meet the every need of the people. The company cares for both, individuals as well as
corporate and small and medium enterprises.

For individuals, the company has a range accounts, investment, and pension scheme,
different types of loans and cards that assist the customers. The customers can choose
the suitable one from a range of products which will suit their life-stage and needs. For
organizations the company has a host of customized solutions that range from funded
services, Non-funded services, Value addition services, Mutual fund etc.

These affordable plans apart from providing long term value to the employees help in
enhancing goodwill of the company. The products of the company are categorized into
various sections which are as follows: • Accounts and deposits. • Loans. • Investments
and Insurance. • Forex and payment services. • Cards. • Customer centre. 3.13
PRODUCTS AND SERVICES AT A GLANCE 1. PERSONAL BANKING SERVICES A.

Accounts & Deposits Savings Account • Regular Savings Account • Savings Plus Account
• Savings Max Account • Senior Citizens Account • No Frills Account • Institutional
Savings Account • Payroll Salary Account • Classic Salary Account • Regular Salary
Account • Premium Salary Account • Defence Salary Account • Kid's Advantage Account
• Pension Saving Bank Account • Family Savings Account • Kisan No Frills Savings
Account • Kisan Club Savings Account Current Account • Plus Current Account • Trade
Current Account • Premium Current Account • Regular Current Account • Apex Current
Account • Max Current Account • Reimbursement Current Account Fixed Deposit •
Regular Fixed Deposit • Super Saver Account • Sweep-in Account Recurring Deposit
Demat Account Safe Deposit Locker B.

Loans • Personal Loans • Home Loans • Two Wheeler Loans • New Car Loans • Used Car
Loans • Overdraft against Car • Express Loans • Loan against Securities • Loan against
Property • Commercial Vehicle Finance • Working Capital Finance • Construction
Equipment Finance C. Investments & Insurance • Mutual Funds • Insurance • Bonds •
Financial Planning • Knowledge Centre • Equities & Derivatives • Mudra Gold Bar D.

Forex Services • Trade Finance • Traveler’s Cheques • Foreign Currency Cash • Foreign
Currency Drafts • Foreign Currency Cheque Deposits • Foreign Currency Remittances •
Forex Plus Card E. Payment Services • Net Safe • Prepaid Refill • Bill Pay • Direct Pay •
Visa Money Transfer • E-Monies Electronic Funds Transfer • Excise & Service Tax
Payment F.

Access Your Bank - One View • Insta Alerts • Mobile Banking • ATM • Phone Banking •
Branch Network G. Cards • Silver Credit Card • Gold Credit Card • Woman's Gold Credit
Card • Platinum plus Credit Card • Titanium Credit Card • Value plus Credit Card • Health
plus Credit Card • HDFC Bank Idea Silver Card • HDFC Bank Idea Gold Card 2.

WHOLESALE BANKING SERVICES • Funded Services • Non Funded Services • Value

Added Services • Internet Banking • Clearing Sub-Membership • RTGS – sub
membership • Fund Transfer • ATM Tie-ups • Corporate Salary a/c • Tax Collection •
Financial Institutions • Mutual Funds • Stock Brokers • Insurance Companies •
Commodities Business • Trusts 3.

NRI BANKING SERVICES • Rupee Saving a/c • Rupee Current a/c • Rupee Fixed Deposits
• Foreign Currency Deposits • Accounts for Returning Indians • Payment Services • Net
Safe • Bill Pay • Insta Pay • Direct Pay • Visa Money • Online Donation • Remittances 3.14
SWOT ANALYSIS OF HDFC BANK STRENGTH SEGMENTATION PRODUCT FEATURES
WORK ENVIRONMENT LOW DOCUMENTATION WEAKNESSES MAINTENANCE
CHARGES HIGH HIGH INTEREST RATE CUSTOMER HAVE NOT FULL INFORMATION
ABOUT GETTING FACILITIES OPPURTUNITIES MERGED WITH CENTURIAN BANK 1300
BRANCHES COMING ON VARIOUS LOCATION THREAT SBI BANK OTHER PRIVATE
BANK (ICICI,AXSIS etc) 4. THEORITICAL BACKGROUND 4.1

Meaning of Loan: - Loan is a method of lending under which bank gives credit to a
borrower for a fixed period and for a specific purpose. Loan are promises for future
payment, they have to be repaid in periods beyond a year and are therefore long-term
liabilities. In other words “when a banker makes a advance in a lump-sum which can not
be paid wholly or partly and which the customer has permission to withdraw
subsequently, it is called a loan.”

Many a time a borrower needs funds for fixed assets or non-respective type of activities
and thus seeks money from the bank that is withdrawn in one lump sum. The loan
amount is normally repaid in installments. Loan may be shot-term, medium-term or
long-term. Loans and advances are classified in to secured and unsecured. Secured Loan
or Advance: - Secured loan or advance means a “Loan or Advance made on the security
of assets.

The market value of which is not at any time less than the amount of such loan or
advance.” Unsecured Loan or Advance: - An unsecured loan or advances means a “Loan
or advance not so secured. A partly covered loan or advance is partly covered by the
security of assets, the market value of such securities being less than the amount that
has been lend or outstanding at any time.” Many times people would have experienced
financial crisis. During such events they would have borrowed money from their
neighbour or acquaintance.

These kinds of loans which are available in banks and other financial institution are
known as personal loans .A personal loan can be a secured or unsecured one depending
upon the company's practices, credit history etc. What are personal loans? What are its
uses? What are the types in it? Benefits of secured and unsecured loans Who will
provide personal loans? How one can avail personal loans? Personal loan A personal
loan is a sum of money that an adult person borrows to meet his financial needs and
requirements.

An individual can take an easy personal loan or a guaranteed personal loan for a variety
of reasons. Loans for personal debt help provide funds to purchase that dream boat or
car, pay for mortgage arrears or home improvement requirements. In fact personal
loans help meet most of the financial emergencies that an individual can think of.

Personal loans are often the most preferred type of loan on account of their flexibility.

The two most common types of personal loans are: Secured Loans and Unsecured Loans
Both these options are linked to the choice that one can use any fixed asset to serve as
collateral to secure an easy personal loan. Who Will Help Provide Personal Loans and
How? There are many banks and financial institutions that would help provide with easy
personal loans or guaranteed personal loans.

As all of them would have their own sets of terms and conditions by which they abide, it
would be smart to consult with as many lending institutions before arriving at a decision
of personal loan. Talk to them about the financial requirements. Check the quotes that
they give. Once the formalities of taking a loan is completed, the banks would give a
lump sum of money. This could be repaid over a period of time.

The longer the period of repayment, the lesser the interest rate. The lenders have a duty
to inform the borrowers of the rate of interest that they would be charging. Be sure to
investigate whether the rate of interest charged is fixed or floating. Check with the
banks also about any other prepayment penalties, and other costs incurred for securing
a loan Online Personal Loans Loans are offered by not only lenders in the locality but
also by internet lenders. They could either be directly deposited in the bank account or
mailed by way of cheque.

Repayments could be automatically debited from the account to suit convenience. Be

sure to make payments on time, or else one may incur additional penalties. Guaranteed
online personal loans come with lower rates of interest than credit cards. The first
guaranteed personal loans could be a small sum; but once it is proved that payments
can be made on time, it is most likely to be assured a larger sum the next time one opt
for a guaranteed online personal loan. 4.2

TYPES OF PERSONAL LOANS A Personal Loan is one which is borrowed from a bank, or
a building society or institution, or from any other lender as a lump sum of money. It
would ideally be the best option to consolidate all of the debts into one, so that the
overall amount of monthly repayments is reduced.

Short term personal loans, secured personal loans, fast cash personal loans, no credit
personal loans, military personal loans, second chance personal loans, Christian lending
personal loans- all these are available to a person who is looking to borrow money
between one and five years.

There are basically Two Types of Personal Loans. They are: A Secured Loan. A secured
personal loan is so called due to the security or the collateral that is involved in the
whole process of lending. It is A loan that requires the consumer to provide the lender
with some form of collateral or security- that is his property or his home, either
mortgaged or owned- other than just his verbal assurance of repaying the loan. In other
words, it is a loan that has been secured on the borrower's assets.

Points to Remember Before Opting For A Secured Personal Loan If the borrower agrees
to a secured personal loan using his home as collateral, he should be prepared for the
eventuality of forfeiting it to the lender, should he not make his loan payments and
interest on time and according to the agreed terms. The lender would sell the property
to recover his money and cover any additional expenses incurred while doing so.

Before he signs up for even a small secured personal loans, the borrower has to make
sure that he can afford the monthly payments. It would be in his best interest therefore
to read the credit agreement terms carefully, paying special attention to the interest rate
and term of the loan, the total amount that is payable, and the repayments required.

Benefits of a Secured Loan The benefits of secured personal loans are various, the
primary being: That they can be repaid with lower monthly payment, over a longer
period of time. That the rate of interest charged on the loan would be much lower than
a comparable instant unsecured personal loans, thereby making the option of a secured
personal loan cost-effective. One also does not have to worry about unmanageable loan
repayments terms, on account of the low interest rates.

Further the personal loan could also be offering a more flexible repayment period. That,
if the borrower is the owner of a home, the chances of a lower rate of interest being
charged on the loan are high, since he has secured the loan based on the strength of his
assets. Failure to repay the loan would mean foreclosure or repossession of this asset by
the lender, thereby greatly reducing the lender's risk.

Hence, the low interest rates. On secured loans, the typical APR is 6-25%. Secured loans
are more easily available at very reasonable rates, to those with adverse credit rating
that is, with a tarnished history of defaults, arrears, and bankruptcy, and to those with a
poor credit record, for example, people who are self employed or those who have just
changed jobs.

The borrower is allowed funding that ranges from 3000 pounds (if you want a small
secured personal loan) up to 50000 pounds, and some lenders are willing to
contemplate lending more. This is much more funding than an instant unsecured
personal loan would allow, and where the maximum amount that one could borrow
would be for a limit up to 25,000 pounds. Secured personal loans are the loans which
require a large amount that could be repaid over a longer term.

The borrower could consolidate his more expensive borrowings into a single monthly
repayment that is much cheaper. He could opt for a secured loan in order to consolidate
debt, and to replace the high interest rate loan with a much lower one. The easy
availability of the secured personal loan is another benefit for consumers.

Because of the low risk that funding a secured loan poses to its lenders, very few
applications for a personal secured loan are turned down. Another benefit would involve
the flexibility of use of the secured personal loan. This type of loan could be tuned to
meet the needs of any financial requirement, be it debt consolidation, home
improvement.

Only when the borrower has adequately provided for its amortization, can the benefits
of the secured personal loan be enjoyed. Therefore it would be smart to make
preparations for the loan repayments from the very beginning, and to choose that mode
of loan repayment that most suits. Secured Personal Loans are now available in the UK,
with a wide pool of lenders, especially online, so that one could browse and book the
best personal secured loan vide the Internet, in terms of interest rates and other
conditions The Unsecured Personal Loans This is a loan where The borrower is not
required to pledge any collateral, to secure the loan. It is also called a Signature Loan, as
the only collateral required is the borrower's signature.

This loan is based solely on the borrower's credit, can be utilized for any purpose, and
does not insist upon home ownership and great credit. Since this instant unsecured
personal loans are not been secured on the assets of the borrower, the creditor has no
right to these assets, should the borrower default on repayments. However, the lender
has the right to legal claims to recover his money, which may entail the borrower having
to sell his assets to repay the loan.

As this loan is not secured, and as the lender's risk is consequently high, the rate of
interest or APR would be higher than that charged on a personal secured loan. The
lender just may limit the unsecured personal loan to exclude certain purposes. Useful
Benefits of an Unsecured Personal Loan There is no requirement of collateral. The
borrower is not obliged to pledge his hard earned assets. Instead, he can take
advantage of his credit history.

There are no financial statements or no documents of tax returns required. The

borrower is not encumbered with too much paper work if he chooses to opt for instant
unsecured personal loans. That is most lenders of guaranteed unsecured personal loans,
offer what is called a stated loan, where the borrower's information on his financial
circumstances need not be ratified by supporting financial statements or tax returns
documents.

This is especially advantageous for those firms or individuals whose reported financial
statements are not necessarily a reflection of their true earnings. There is no
requirement of a business plan for an unsecured personal loan. Traditionally lenders
require an elaborate business plan complete with pro forma's and budget.

This procedure can be both costly and time consuming, with no guarantee of securing
loan approval. But with unsecured personal loans there is no need for a business plan.
Quick approvals-the network of unsecured personal loan lenders would require very
little time to approve the instant unsecured personal loan.

There is an easy application process- most lenders of unsecured personal loans require
only a one-page application. Therefore we see that all good personal loans are a rare
breed, and to be achieved with persistent effort, tact and patience- be they unsecured
personal loans, instant unsecured personal loans, secured personal loans.

Fast Cash Advance Loan Sometimes, a person may be in need of a quick payday loan, so
that he could meet an unexpected money crisis. Car repair and other unexpected bills
usually occur at inconvenient times. In case he does not have the extra cash to meet
these unexpected expenses, he could really consider applying for a cash advance.

A Fast Cash Advance Loan: It is similar to a bank loan only cash advances are a lot easier
to qualify for, and enjoy a shorter term. Chances that the application for a bank loan
may be denied are high as banks have a requirement of sufficient income, a collateral
and good credit rating. It has a two week term. Therefore the loan is due along with the
next paycheck. It is required that the applicant must be at least 18 years of age.

The cash advance company would also be checking out /confirming the salary and
employment. While the company is keen to help, it also wishes to satisfy itself that the
loan repaid. It renders eligibility to receive funds up to a maximum of $1000, with a cash
advance. Some companies allow larger sums to be borrowed.

Typically fast cash advance loans are due within the period of two weeks. Taking the
circumstances of the borrower into consideration however, some cash advance
companies would expect that at least half the loan amount will be repaid in two weeks,
and the balance in a month. Such loans are called 30 Day Payday Loans.

But it should be remembered that before taking such a 30 day payday loan, a company
must be chosen that allows for long term loans, and assumption should not be made
that all cash advance companies would give long term cash advance.
Military Personal Loans are easy for servicemen to get anytime. Military jobs involve
good salaries and high status and sometimes these could complicate matters by
incurring extra expenses.

A Military Payday Loan It is offered by military loan companies to help servicemen to

buy a home or a car, or any other requirement that needs higher costs. These
companies offer varying types of loans, for example, bereavement loan, career service
loan, disaster relief loan, that are easy and at the same time affordable. It is specifically
for men and women of the military and can be got by anybody in the military, even
those with bad credit history.

It Can be easily obtained by vide electronic transfer, after making the application online.
This is one of the biggest advantages- that a military man can get his application
wherever he may be. A second advantage would be the low rate of interest. The military
man is given the choice of his own repayment schedule. If he cannot repay with one
payday check, then he can do it with successive ones.

If he wants cash instantly, but payday is still far, he can apply for funding of the Instant
Military Payday Loan. Retired army servicemen usually apply for the fast cash loan, and
retired military loans also do not discriminate between ranks of ex servicemen. Types of
Military Loans There are Different Types of military personal loans and they include

The Disaster Relief Loan : Pioneer Military Lending , for example, helps provide funds (up
to$ 1000 )for military families in times of disaster(Hurricane Katrina for instance), by
simply choosing the option of Red Cross Emergency under the application's space
marked for Purpose of Loan.

The Bereavement Loan: This is a 90-day interest -free military personal loan, and which
guarantees approval for those military serving members having family emergencies.

Career Service Loan: These personal loans for military servicemen offers maximum loan
funding of $6500 for those career military servicemen, and for second - enlistment.

Leadership VIP Loan: This loan for military personnel comes with a maximum loan
amount of $ 5000, served at competitive rates of interest for officers of the military.

Premier Loan: This military personal loan provides for maximum funding of $ 7500 and
once again at competitive rates of interest for servicemen and women of the military.

Senior Leadership VIP Loan: This personal loan for the military allows loan funding for
up to a maximum of $10000, which is charged at competitive rates of interest for senior
service members of the military. Military Loan To qualify for a Military Loan certain
requirements are necessary.

Pioneer Military Lending (an online service) for instance, requires that one must be: An
Active Duty Military Personnel to be able to qualify for a loan for military personnel A
Full Time Active Reserve Personnel Retired Military Personnel with a 20Year career or A
Department of Defense Military Personnel( GS-6 or above) Advantages of Personal
Military Loans The big advantage of a payday personal loan for the military is that the
military serviceman can receive the application wherever he is.

Many military firms have already commenced the process of online application service,
where the military service member could just download the application, fill in the form,
and then send the filled out application. After approval of the personal military loan, the
cash advance is sent vide electronic funds transfer. Online applications are secure, and
the privacy of the online transaction is ensured. Such applications are processed with
the help of a personal military loan consultant.

Another advantage of these loans for military personnel would include the low interest
rate charged on the loan. The third advantage is that the military service member is
given the option to choose his own repayment schedule. If he cannot afford to pay it all
with one payday check, then the loan amount can be repaid with the next paycheck.

In case the military man is urgently in need of cash, but payday is still far away, he could
apply for an instant military payday loan. This military personal loan is a fast and
convenient method to meet the financial requirements of military men and women,
even those who require bad credit military personal loans. Military cash loans are
available also for the retired armed forces, and not just for active military men.
Retired armed forces servicemen when in urgent need of money, usually apply for a fast
cash loan. Very much like the concept of instant cash payday loans, retired military
personal loans also do not differentiate between the grade and rank of former
servicemen of the military.
No Credit Personal Loans For borrowers with poor credit history, this sort of No Credit
Personal Loan is a blessing.

Though achievable, it should be applied for, only after extensive research. Though for
the first time, this sort of loan treats borrowers with poor credit history on par with
others, there is a very distinct possibility of being duped. Online, there are several
lenders who offer loans with no credit checks.

But it would be smart to first research all free quotes for the same, and read the fine
print, before applying for funding. It is possible to find lenders who charge reasonable
rates of interest, and the borrower must learn to differentiate between those lenders
who charge reasonable rates and those who charge outrageous ones. Remember to
match and coordinate purpose with loan term.

Any loan term that extends beyond three to five years means that the loan calculations
have faltered. Second Chance Personal Loans For those individuals who run into
unplanned financial crisis, such as a sudden tragedy or any other financial contingency, a
second chance personal loan with poor credit is what is required.

There are many lending companies that offer a comprehensive package for those
persons who require a second chance personal loan with poor credit. This type of
funding can be either through securing collateral or may be unsecured. When there is
valuable collateral involved, either such as real estate or home accrued equity, it is
always easier to find funding for a second chance personal loan with poor credit. This is
because of the protection that is offered to the lender's investment.

While a second chance personal loan is difficult (banks do not like to offer second
chance personal loans with poor credit loans without collateral) but not impossible to
achieve, there are several lenders online that can help provide funding. Typically a
lender who offers second chance personal loans with poor credit will offer higher rates
of interest, shorter repayment terms, and set limits for money to be borrowed. Short
Term Personal Loans Short Term Personal Loans can be got through banks and online
financial companies, and a wide variety of other sources.

With such a Short Term Personal Loan: The rate of interest involved is usually high. This
is because the period of repayment is usually for a short time. Such types of short term
personal loans have to be beneficial to both the borrower and the lender, and high rates
of interest are one of the ways by which a bank or a financial company stands to benefit.

This type of short term funding is often utilized to help individuals who are in need of
varying sums of money for a short period. Many of the lending companies usually
provide for such a loan, and also stipulate the maximum amount of money that can be
borrowed under such a circumstance. Banks, while giving this type of short term
personal loan, usually require collateral, before disbursing the same.

Online financial companies only require a credit check, but lend very small sums of
money. Banks do not offer more than $15, 000 or $20, 000 dollars as well, and
individuals seeking larger sums of money, would have to tap other sources for funding.
Because of the negative and positive aspects of short term personal loans, it is
recommended that the individual does his research thoroughly, before he applies for
funding . 4.3 PERSONAL LOAN FEATURES HDFC bank offer a range of features and
benefits on personal loans.

The key features of personal loans include customisation of personal loans, and special
interest rates on personal loans for existing HDFC Bank customers. You can also transfer
your existing personal loan to HDFC Bank. There are several benefits of personal loans
from HDFC Bank. You can get in touch via SMS, online chat or phone banking, and
check your personal loan eligibility online in just 60 seconds.

Additional personal loan benefits include personal accident cover and personal loan
security. Stay Protected Personal Accident Cover : For a nominal premium* you can avail
of Personal Accident cover of up to Rs. 8 lakhs, and Critical Illness cover of up to Rs. 1
lakh. The premium for these policies will be deducted from the loan amount at
disbursal.

Applicable taxes and surcharge/cess will be charged extra. Personal Loan Security:
Secure your personal loan with Sarv Suraksha Pro,key benefits includes: Credit Shield
Cover equal to the outstanding loan amount Accidental Hospitalisation cover of up to
Rs. 8 lakhs Accidental Death/Permanent Disablement cover of up to Rs. 1 lakh. The
policy is offered by HDFC Ergo GIC Ltd.

Fulfil Your Every Need No matter what your needs, HDFC Bank can customise a Personal
Loan for you. Existing HDFC Bank account holders can avail of our special offers, interest
rates and charges. First-time Loan customers can also avail of a host of benefits. Transfer
Loan Balance with Ease Transfer your existing Personal Loan to HDFC Bank. Enjoy lower
EMI’s and SAVE on your interest paymentsInterest rates as low as 11.39%* on the
existing loan transferFlat processing fee of only Rs. 1999*To transfer your loan balance,
apply now.

Quick Eligibility Check & Disbursal Check your Personal Loan eligibility online or at
select branches in just 60 seconds. Once all your papers are submitted, the loan will be
disbursed in just one working day. Convenient Borrowing For any help with your loan,
you can reach out to us via SMS, Webchat, Click2Talk and PhoneBanking. 4.4How to
apply for a personal loan Step 1: Enquiry with a financier: The first step is to get in touch
with a lender.

It is required to get in touch with as many lenders as possible and get them to make
loan offers. Then negotiate with them to get the best interest rate . Check if there are
any special offers. After getting all the banks to make their offers, select the lender
based on the information given. Step 2: Documents Collection After finalizing the
lender, the lender's direct selling agent will visit and collect documents supporting proof
of income, residence proof, and identity.

It may be required to produce copies of IT returns, salary slips, bank statements, ration
card, passport, driving licence, and other relevant documents. These requirements vary
from lender to lender. Step 3: Field Investigation Agency Representative Visit After
submitting the documents, a field investigator will visit home to double check the facts
provided in the documents, such as the place of residence, tenure at work place and so
on.

It is essential to be present during this visit; otherwise the investigator could report that
the facts provided do not actually add up, thus forcing the lender to reject the loan
application. Step 4: Loan approved Once the lender is satisfied with the veracity of the
documents provided, the loan is approved. The lender then disburses the amount
through cheques or demand drafts (DD). 4.5

DOCUMENTATION – Compared to other types of loans, personal loans requires to

produce the least number of documents. The necessary documents required can be
classified into three: documents supporting identity, residence and income. Identity
Proof: A copy of any of passport or driving license, voters ID, PAN card, credit card with
photograph, or employee ID card with photograph.

Any one of the above documents with photograph is proof that he is the same person
as profess to be. Proof of Residence: A copy of passport, ration card, or voters ID if he
reside at the same place as entered in the above-mentioned documents. If he is staying
as a tenant on rent, in a place different from where he have been issued the ration card,
passport, or voters ID, he can produce utility bills (electricity or telephone) of the place
as proof of residence. Income proof The proof of income for salaried individuals differs
from that of self-employed individuals.

Salaried people need to submit their latest salary slip, form 16 for the last financial year,
and their bank statement for the last 6 months. Self-employed people need to provide
their IT returns for the last 2 years, balance sheet, and profit & loss account as proof of
income. To conclude the following documents are required along with your Personal
Loan application: Identity proof (copy of passport/voter ID card/driving license/Aadhaar)
Address proof (copy of passport/voter ID card/driving license/Aadhaar) Bank statement
of previous 3 months (Passbook of previous 6 months Latest salary slip/current dated
salary certificate with the latest Form 16 Prime Consideration before Applying a Loan
Remember to always borrow in a responsible manner.

Never borrow more than it can be repaid. Indulge in some serious shopping to seek the
best rates for personal loans. By comparing the best rates for personal loans and for
unsecured personal loans, a comprehensive idea of the choices offered would be got,
before signing the credit agreement. Always remember to read the small print, before
actually taking the step to sign on the dotted line.

Whether opting for a personal loan , or a secured loan, and are actively seeking
unsecured personal loan best rates, or the best rates for personal loans, it should be
checked first if there are provisions for : An early repayment fee where a redemption fee
is charged if loan is repaid before the end of its term ( sometimes the fee could be as
much as two month's interest, which would considerably add to the cost of your
personal loan ) An arrangement fee for purposes of setting up the loan. For a break or
deferment period where it is exempt from making the repayment for a specific period of
time on account of some difficulty in repayment.

However the interest accrued during this break period is still payable, and could be
added to the outstanding loan balance.
4.6 CHARGES APPLICABLE BEFORE AND AFTER THE PERSONAL LOAN – Very often we
fail to read the fine print in a loan document. The real cost of personal loan is visible
only when factor in numerous other charges levied.

If intend to make comparisons with other types of loans, it is necessary to take into
account these charges to arrive at the real cost. For example, the processing fee or
prepayment fee in the case of a personal loan will be different from that of a loan
against property. Here is a list of all charges that are levied either before the loan is
disbursed or through the course of the loan or when the loan is terminated: Description
of Charges: Processing fee Prepayment fee Charges for late payment (loans) Cheque
bounce charges Duplicate statements charges Documentation charges Service tax
Processing fee: Processing fee is the amount charged by banks to cover the cost of
processing the loan application. Processing fees vary from one bank to another.

Some banks ask to pay the processing fee upfront even before the loan is sanctioned.
This is often charged when loan application is submitted along with the supporting
documents. The processing fee is generally a percentage of the loan amount and is
between 1-2 percent for personal loans.

Some banks levy a flat charge of Rs 1000 or Rs 2000 upfront, and then deduct the
balance processing fee (if any) from the loan amount before disbursal. The processing
fee is non-refundable. Some banks say the processing fee will be refunded if the loan is
not sanctioned. It is recommended to take this in writing from the bank as technically,
processing fee is non-refundable.

Pre-payment fee: The pre-payment fee is the penalty paid by the borrower for
foreclosing the loan before the actual tenure. Pre-payment fees are levied as a
percentage of the outstanding principal of the loan amount. The pre-payment fee varies
from bank to bank. It varies from 2-5 percent of the outstanding loan amount, if the
repayment amount exceeds 25 percent of the outstanding loan amount.

Charges for late payment: When the monthly installment (EMI) towards repayment of a
loan is delayed the bank collects the installment along with late payment charges. The
late payment charge is also known as the delayed payment charges or the overdue
payment charges. Late payment charges are fixed at the time of signing the loan
contract. This is chargeable you make the payment after the due date.

Late payment fees range from 2-3 per cent of the EMI. Cheque Bounce Charges: Cheque
bounces mean that a cheque has been presented for clearance, but the amount written
on cheque exceeds that available balance in the account. It is often colloquially referred
to as a bounced cheque. Business frequently use the term dishonoured cheque.

If post-dated cheques are given to the bank to debit the EMI from the customers
account, it is to be ensured that there are sufficient funds in the account every month. If
a single cheque bounces, the bank charges anything from Rs 250 to Rs 500 as penalties.
Duplicate statements charge: When the loan is sanctioned, the lender gives the
customer a statement detailing the repayment schedule.

If he loses it, he can request the bank to issue a duplicate statement. The statement
indicates the balance loan amount and the remaining EMIs. Banks charges anywhere
between Rs 100 to Rs 500 for issuing duplicate statements. Documentation charges:
Banks levy documentation charges towards the various documents provided towards
the loan application.

Many banks employ third-party vendors to do the document verification. The expense
on this account is usually passed on the customers, which ranges from Rs 500 or Rs
1000. Service tax: Service tax is a tax levied on service providers who have annual
revenue of more than 8 lakh. Banks loans too fall under the purview of service tax.

service tax is charged at the rate of 12.36 per cent. 4.7 PERSONAL LOAN : ELIGIBILITY
CRITERIA :- The person eligible for a personal loan are a salaried individual, self-
employed individual (own business), or a self-employed professional (doctor, lawyer,
etc.).

Other factors such as income, age, residence, work experience, repayment capacity, past
obligations and place of work are also taken into account. A personal loan can be used
for any purpose provided it is legitimate; the end use of the lender need not be
mentioned. The following people are eligible to apply for a Personal Loan: Salaried
doctors, CAs, employees of private limited companies, employees from public sector
undertakings, including central, state and local bodies Individuals between 21 and 60
years of age Individuals who have had a job for at least 2 years, with a minimum of 1
year with the current employer Those who earn a minimum of Rs. 15,000 net income per
month (Rs.

20,000 in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad,

Cochin)
Personal Loan: Eligibility Criteria: Basics Personal Loan eligibility calculator Calculate the
personal loan amount likely to get from the lender. Personal Loan Eligibility Calculator
for Self-Employed If self-employed, this calculator will tell the amount of personal loan
one likely to get.

Personal Loan: Interest Rates: Interest rates charged on personal loans vary across
various banks. There are primarily 3 kinds of interest rates, most commonly offered by
banks are: Fixed interest rate Floating interest rate Flat rate Of the rates offered, flat
rates can be considered the most expensive as in other cases, the reducing balance
method is used for calculation.  4.8

PERSONAL LOAN RATES AND FEES HDFC Bank offers competitive rates of interest on
personal loans. If you are an existing customer, you can enjoy additional benefits on
interest rate on your personal loan. Find out more about HDFC Bank’s personal loan
interest rates, along with personal loans fees and charge below.

Enclosed below are HDFC Bank Personal Loan Interest Rates & Charges :- Fee Amount
to be Paid Rack interest rate Salaried - 15.00% TO 20.99 % Loan processing charges Up
to 2.50% of the loan amount subject to a minimum of Rs. 1,999/- & Maximum of Rs.
25000/- for Salaried Customers. Prepayment in Part or full
(Refer FAQ section for detailed terms) Salaried - No pre-payment in part or full
permitted until repayment of 12 EMIs

Part Payment allowed up to 25% of Principal Outstanding. It is allowed only once in a

financial year and twice during Loan tenure.

Pre-payment charges
(on PrincipalOutstanding) / 

Part Payment Charges 

[on Part Payment amount] Salaried - 13-24 Months - 4% of Principal Outstanding,
25-36 Months - 3% of Principal Outstanding
>36 Months - 2% of Principal Outstanding No Due Certificate/No Objection Certificate
(NOC) NIL Duplicate of No Dues Certificate/NOC NIL Solvency Certificate Not
applicable Charges for late payment of EMI 2% per month on EMI / Principal overdue
subject to the a minimum amount of Rs.

200/- floating rate Not applicable Charges for changing from floating to fixed rate of
interest Not applicable Stamp duty & other statutory charges As per applicable laws of
the state Credit assessment charges Not applicable Non standard repayment charges
Not applicable Cheque swapping charges Rs 500/- Amortization Schedule charges Rs
200/- Loan cancellation charges NIL (However client would be charged interest for the
interim period between date of loan disbursement and loan cancellation and processing
fees would be retained.) Cheque bounce charges Rs.

550/- per cheque bounce Legal/incidental charges At actual Rates offered to customer
during the period of April 2018 - to June 2018. IRR Q I (2018-19) Min IRR 10.90% Max
IRR 21.27% Avg IRR 13.04% Annual Percentage Rate offered to customer during the
period of April 2018 - to June 2018. APR Q I (2018-19) Min APR 10.91% Max APR
25.26% Avg APR 13.26% 4.9

LOAN PROCEDURE :- HDFC bank adopt following procedure for loan :- Submit the
Application Appraisal of Loan Documentation Convene to loan applicant To Issue Draft
or Pay order Submit the Application: - First of all the loan borrower should submit
application to the particular bank. The borrower is required to fill out a common
application form, which seeks comprehensive information about proprietor’s and loan
borrower’s back ground and his business network and as well as his cost of project and
economic consideration.

Appraisal of Loan: - The bank follows good appraisal system for effective lending and to
make easy repay in future way. The main task of the lending bank is to make sure that
the income generated from the loan is sufficient to repay the loan installments
according to the terms and conditions of amortization.

The risk involved in term lending is much more than the risk in short-term lending
because the loans are given to new undertaking, or for the modernization and
expansion of existing undertaking and for loan period. Before sanctioning any loan a
banker should assure himself that the borrowing concern shall be able to earn sufficient
income to pay the loan installments.

The methods of analysis and standard to be adopted for an appraisal of loan are more
similar to investment decision than to short-term lending. The appraisal of loan included
projection of future trends of output, sales estimated of costs, returns and flow of funds.
It is extremely difficult to have a clever cut formula for the appraisal of term loan since
many factors have to be considered such as the type of borrowing bank and its
activities, the markets potential, its management, and financial position. The amount of
loan and the period of its repayment.

Another important factor is whether to give weight age to profitability or to its broad
economic significance in the development of the economy. A term loan may be
appraised by considering four different aspects of the proposal. They are: Technical
feasibility Economic feasibility Managerial competence Financial feasibility
Documentation: - After completing the step of submit the application and appraisal
system of loan.

Then loan applicant should collect the document for borrowing loan, every documents
and requirement are needed according to the co-operative bank rate. If the loan
applicant wants to borrow loan of huge amount, so at a time strong documents are
presented by loan applicant against bank like evident of shareholders, original and
photocopy of property’s documents, photocopy last three years income tax returns file,
etc.

if loan applicants has no any recommendation from share holder so firstly the bank
becoming share holders of his bank by issuing share to them, so above types of
documents are used to borrow loan and advances from the bank. Convene to Loan
Application: - After collecting the necessary documents, an officer of the recipient bank
review it to ascertain whether it is complete for processing, when the application is
considered complete. Then the co-operative bank held meeting of his loan applicant
and sanctioned the particular loan.

Generally this meeting is convened on Monday and Thursdays in every week. Otherwise
expected it in other contingent situation and gives date, day and time for delaying
particular meeting. To Issue Draft or Pay order: - At the last stage is that, after convening
of loan applicant and sanctioning loan, borrower should pay its stamp duty, margin and
one installment of loan, then in the stamp document or stamp procedure. Then bank
gives to them pay order or draft.

If the any loan borrowers want to purchase machinery or vehicle from out of city so he
need quotation of that particular company, and finally bank made draft of company’s
name otherwise if the quotation of city area so at a time the co-operative bank made
pay order of company’s name. Them it gives to company through loan applicant.

Thus above procedure is followed by the loan applicant, who wants to borrow loan from
banks and satisfied his goal or objectives. 5. RESEARCH METHODOLOGY 5.1 RESEARCH
DESIGN AND METHODOLOGY For any research, research design is of immense
importance as it facilitates the smooth sailing of various research operations. The
method adopted by the researcher for completing the project is called Research
Methodology.

In other words, Research Methodology is simply the plan of action for a research which
explains the detail, how data is to be collected, analyzed and interpreted. Data becomes
information only when a proper methodology is adopted. Thus we can say methodology
is a tool which processes the data into reliable information. 5.2 SCOPE OF THE STUDY As
the competition level in the banking sector is ever increasing, it becomes indispensable
for the company (HDFC) to conduct the study on the perception and satisfaction level of
its customers.

This study will help the company in making its new strategies to satisfy its customer in
the ways in which he or she wants to be satisfied and to the company its position in the
market. The study on customer satisfaction has the geographical coverage limited to
White Field area and Indira Nagar only. This study will help the company to know in
detail about the customer perception and their attitude towards the company services
and products.
The company will gain the feedback from the customer to improve its products and
quality of service. 5.3 METHODS USED FOR DATA COLLECTION ARE :- 1) Primary Data 2)
Secondary Data Primary data: Primary data are datas, which are original in nature, and
arecollected by the researcher. The method used to collect the primary data was Survey
Method. The survey method included a structured questionnaire that was given to the
respondents.

Secondary data: Secondary data are data, which has been collected andcompiled in
advance for another needed purpose. Secondary data is an important method to know
the present problem faced by the account holders in the field of HDFC Bank.
Newspapers, articles, books, magazines etc. have been used to prepare the
questionnaire. 5.4

TOOLS FOR DATA COLLECTION The tool used for data collection is Primarily
“Questionnaire method”. The questions contained: a) Open-Ended Questions- Where
the respondent was given a chance to reply or give suggestions to the Company. This
included Free Responses questions where the respondents were given the freedom to
give suggestions.

b) Close-Ended Questions- Where the respondent was given a lesser chance to reply.
This includes Multiple Choice Questions where the respondents were given a number of
alternatives. 5.5 SAMPLING METHOD USED: Non probability sampling, i.e., convenient
sampling method was used to select a sample of 100 customers among the customers
of the HDFC Bank. 5.6

SAMPLE SIZE: Sample size of 100 customers are taken from the Boat Club branch of
HDFC Bank. 5.7 SAMPLING METHOD USED: Random sampling method was used to
select a sample of 100 customers among the customers of HDFC Bank. 5.8 SCALE:
Respondents were given a scale whose positions range from ‘Highly Satisfied´ to ‘Highly
Dissatisfied´ 5.9

AREA OF SURVEY: The area selected to find the satisfactory level was in and around Boat
club road,Pune DATA ANALYSIS The study on customer satisfaction has the
geographical coverage limit to Boat Club Road ,Pune only. This study will help the
company to know in detail about the customer perception and their attitude towards
the company services and products.

The company will gain the feedback from the customer to improve its products and
quality of service. 6.1) TABLE SHOWING DISTRIBUTION OF AGE - AGE GROUP NO. OF
RESPONDENTS PERCENTAGE 20-30 22 22% 30-40 43 43% 40 and above 35 35% Total
100 100% ANALYSIS – The above table shows that- 22% of the respondents fall under
the age group of 20 - 30 years, 43% of the respondents fall under age group of 30 - 40
years and 35% of the respondents belonging to age group of 40 and above years. /
INFERENCE - Hence it clearly shows that he majority of the respondents fall under the
age group of 30 - 40 years i.e. 43%. 6.2) TABLE SHOWING DISTRIBUTION OF GENDER
GENDER NO.

OF RESPONDENTS PERCENTAGE FEMALE 43 43% MALE 57 57% TOTAL 100 100%

ANALYSIS– The table shows that there are – 57% of male respondents 43% of female
respondents / INFERENCE- Thus the table clearly shows that the majority of the
respondents are male i.e. 57%. 6.3) TABLE SHOWING THE DISTRIBUTION OF THE
MONTHLY SALARY / ANALYSIS- The above table shows that there are no respondents
who have a monthly net take home salary of less than Rs 15,000; there are 23% of the
respondents who fall under Rs 15,000 - Rs 30,000 household income and 77% fall under
the more than Rs 30,000 net take home salary category. / INFERENCE - The table clearly
shows that the majority of the respondents have more than Rs 20,000 of monthly net
take home salary that is 77%. 6.4)THE IMPORTANCE OF THE INTEREST RATE
ACCORDING TO THE CUSTOMERS- / ANALYSIS-The above table relates that the 65% of
the respondents think its extremely important for the interest rate to be convenient,
20% of the respondents think it is somewhat important, 15% of the respondents think
its not so important while none of them think its not at all important.

/ INFERENCE- Table number 7 clearly shows that majority of the customers think that it
is very 42 important that the interest rate are convenient i.e. 65%. 6.5) THE IMPORTANCE
OF PROCESSING FEES AND TIME IN HDFC BANK ACCORDING TO CUSTOMRES /
ANALYSIS – From the above table it can be analyzed that out of 100 respondents 10%
are highly satisfied with the processing fees & time of the bank, 62% are satisfied, 23%
are neutral, 5% are dissatisfied and none are highly dissatisfied.

/ INFERENCE– Therefore, it can be inferred that almost 5% of the respondents are not
happy with the processing fees & time.This indicates that the customers are not satisfied
with the processing fees & time 6.6)TABLE SHOWING SIZE OF THE EASY MONTHLY
INSTALLMENT- / ANALYSIS – The table shows that according to 30% of the respondents
it is very important that the size of the EMI is appropriate, 45% of the respondents think
it is somewhat important, 20 % of the respondents said it is not so important while 5%
of the respondents replied that it is not at all important. / INFERENCE- Hence the table
clearly shows that the majority of the respondents think it is somewhat important for
the EMI to be appropriate.
SUMMARY OF FINDINGS Most of the customers of the bank are satisfied, but there is a
minority of customers who are still looking for improvement. The bank has strong
customer relationship, whether it is customer service or post sales service, HDFC Bank
serves the customer well. However the bank timings are not very convenient for the
customers. Hence, flexible banking hours shoud be adopted to meet customers
requirements.

When it comes to the processing fees & time , it shows mix response. More customers
would prefer a change in the. processing fees & time. The only drawback that HDFC
bank has in compare to other banks is only regarding the interest rates which is
considered to be low in comparison to other bank. While most of the banks charges
high monthly installment for the repayment of loan with compare to HDFC bank.

Enable customers to get personal loan easily and provide variety of other banking
scheme to the personal loan customer . CONCLUSION It is important in today’s
competitive world to create loyal customers and retain them. Hence customer service is
an area where every organization put emphasis on.

The quality of products along with the quality of services influences customers to
choose a particular bank. HDFC Bank, as its punch line says, ‘we understand your world’,
is the largest private sector bank in India which has shown tremendous growth in the
past couple of years .Its customer centric focus and aim to satisfy every customer with
wide range of products and services as mentioned in the report has helped the bank to
have an edge above its competitors. RECOMMENDATIONS- 1.

The processing time which is now 10 days , must be reduce to 9 days ,so more and more
people can apply for the urgent loan for unforeseen calamities 2. Scheduling regular
promotional activities like canopies, company visit etc. to know the more and more
people about the loan facilities based on their salary i.e. ³Personal Loan´. 3. More
number of scheme is provided to the current salary holder cutomer with HDFC Bank
with different features . 4.

Proper and general instruction about the product with latest changes and working
provides to the executive . 5. The interest rates made to be more liberal to cutomer to
customer on the basis of their salary and company profile . 6. The process of funding the
loan needs to be more simple so that the customer can understand the product
according to their needs. 7.

There should be more executive especially inbig and crowded branches in the main part
of the town. 8. Special schemes should be provided for small scale sector business
employees as well new package of offers and discounts should be provided for high
network people BIBLIOGRAPHY BOOKS AND MAGAZINES Marketing Management-
Philip Kotler India Today In-house journals JOURNALS : HDFC bank universe .

Internal reports Presentation material Brochures WEBSITES: www.hdfcbank.com

www.google.co.in www.icicibank.com www.citibank.com www.utibank.com
NEWSPAPERS The Times of India The Economic Times Business Standard

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