A PROJECT REPORT ON

“A STUDY ON CUSTOMER SATISFACTION ON LOAN POLICIES OF

COOPERATIVE BANK WITH REFERENCE TO DNS BANK”

MASTER IN BANKING AND FINANCE

SEMESTER 3

A PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLITION OF

THE DEGREE OF

MASTER IN COMMERCE (BANKING AND FINANCE)

UNDER THE FACULTY OF COMMERCE

SUBMITED BY:

NIKHIL SANDEEP SAWANNT

ROLL NO. 21-10561

UNDER THE GUIDANCE OF:

PROF. TEJAS PEDNEKAR

Dombivli Shikshan Prasarak Mandal’s

K. V. Pendharkar College of

Arts, Science and Commerce.

Dombivli (East) 421 201, Dist. Thane.

DECEMBER, 2021
 Declaration by Learner

I the undersigned MR. NIKHIL SANDEEP SAWANT here by,

Declare that the work embodied in this project work title “A STUDY ON CUSTOMER
SATISFACTION ON LOAN POLICIES OF COOPERATIVE BANK WITH
REFERENCE TO DNS BANK”, forms my own contribution to the research work carried out
under the guidance of PROF. TEJAS PEDNEKAR is a result of my own research work and
has not been previously submitted to any other University for any other Degree/ Diploma to this
or any other University.

Whenever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethics conduct.

Name and Signature of learner

MR. NIKHIL SANDEEP

SAWANT

Certified by

Name and signature of Guiding Teacher

PROF. TEJAS PEDNEKAR

 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealist channels and fresh dimensions in the
completion of this project.

I take this opportunity to thanks the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Dr. SHARAD Mahajan for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our coordinator PROF. TEJAS PEDNEKAR, for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide PROF. TEJAS
PEDNEKAR , whose guidance and care made the project successful.

I would like to thank my College, for having provided various reference books and magazines
related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially My Parents and Peers who supposed me throughout my
project.
 CERTIFICATE

This is to certify that MR. NIKHL SANDEEP SAWANT has worked and duly completed his
project work for the degree of Bachelor in Commerce under the faculty of commerce in the
subject of M.COM PART 2 (BANKING & FINANCE) and his project is entitled, “A STUDY
ON CUSTOMER SATISFACTION ON LOAN POLICIES OF COOPERATIVE BANK
WITH REFERENCE TO DNS BANK” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

Name and Signature of Guide

. NIKHIL SAWANT

Date of Submission:
 INDEX

SR.NO.1 TITLE OF THE CHAPTER PAGE NO.

1 -31

CHAPTER NO. 1 INTRODUCTION

1.1 Title of the study

1.2 Introduction of bank
1.3 Defination
1.4 History of bank
1.5 Need of banks
1.6 Introduction of co-operative
bank
1.7 Defination of co-operative
banks
1.8 History of co-operative banks
1.9 Functions of co-operative banks
1.10 Types of co-operative banks
in India
A. State co-operative banks
B. Central of district co-
operative banks
C. Primary co-operative
credit society
D. Land Development
Banks
E. Urban co-operative
Banks
1.13 Introduction to DNS Bank

1.14 History of DNS Bank

1.15 Milestones

1.16 Board of directors

1.17 CSR
 1.18 Introduction of loan

1.19 Types of loans

1.20 Loans facilities provided by DNS bank

1.21 Bank loan advantages

1.22 Bank loan disadvantages

1.23 Rate of Interest charged by DNS bank

1.24 Basic Document required for loan

application

1.25 Procedure for take a loan from DNS

bank

1.26 KYC documents

32 -37

CHAPTER NO.2 RESEARCH METHODOLOGY

2.1 Objectives

2.2 Hypothesis

2.3 Scope of the study

2.4 Limitations of the study

2.5 Significance of the study

2.6 Selection of the problem

2.7 Sample size

2.8 Data Collections

2.9 Techniques and Tool

38-43

CHAPTER NO.3 LITERATURE REVIEW

 44-68

CHAPTER NO.4 DATA ANALYSIS, INTERPRETATION

& PRESENTATION

69-70

CHAPTER NO.5 CONCLUSIONS AND SUGGESATION

71

BIBLIOGRAPHY & WEBLIOGRAPHY

72-74

ANNEXURE
 CHAPTER NO 1. INTRODUCTION

1.1 Title of the study

A study on Customer Satisfaction on Loan Policies of Co-Operative Bank with

reference to DNS Bank.

1.2 Introduction of Bank

The Indian banking sector is broadly classified into scheduled and non-scheduled banks.
The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of
India Act, 1934. The scheduled banks are further classified into: nationalized banks;
State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks;
and other Indian private sector banks. The term commercial banks refers to both
scheduled and non-scheduled commercial banks regulated under the Banking
Regulation Act, 1949.

Fig 1.1
The Banking sector offers several facilities and opportunities to their customers. All the
banks safeguard the money and valuables and provide loans, credit, and payment
services, such as checking accounts, money orders, and cashier’s cheques. The banks
also offer investment and insurance products.

A Bank is a financial institution which is involved in borrowing and lending money.

Banks take customer deposits in return for paying customers an annual interest payment.
The bank then uses the majority of these deposits to lend to other customers for a variety
of loans. The difference between the two interest rates is effectively the profit margin for
banks.

1.3 Definition

Reserve Bank of India Act, 1934, “A bank is a financial institution that provides
banking and other financial services to their customers”.

Encyclopaedia, “A bank is generally understood as an institution which provides

fundamental banking services such as accepting deposits and providing loans”.

Another definition also states that, “There are also nonbanking institutions that provide
certain banking services without meeting the legal definition of a bank”.

Banks are a subset of the financial services industry.

1.4 History of Bank

• Banking in India, in the modern sense, originated in the last decade of the 18th
century.

• Among the first banks were the Bank of Hindustan, which was established in 1770
and liquidated in 1829–32; and the General Bank of India, established in 1786 but
failed in 1791.
• The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I).

• It originated and started working as the Bank of Calcutta in mid-June 1806.

• In 1809, it was renamed as the Bank of Bengal. This was one of the three banks
founded by a presidency government, the other two were the Bank of Bombay in
1840 and the Bank of Madras in 1843.
• The three banks were merged in 1921 to form the Imperial Bank of India, which
upon India's independence, became the State Bank of India in 1955.
• For many years the presidency banks had acted as quasi-central banks, as did their
successors, until the Reserve Bank of India was established in 1935, under the
Reserve Bank of India Act, 1934.

1.5 Need of the Banks

Before the establishment of banks, the financial activities were handled by money
lenders and individuals. At that time the interest rates were very high. Again, there were
no security of public savings and no uniformity regarding loans.

So as to overcome such problems the organized banking sector was established, which
was fully regulated by the government.

The organized banking sector works within the financial system to provide loans, accept
deposits and provide other services to their customers.

The following functions of the bank explain the need of the bank:

• To provide the security to the savings of customers.

• To control the supply of money and credit

1.6 Introduction of Co-operative Bank

In the Indian Banking System, Cooperative banks exist side by side with Commercial
banks and play a supplementary role in providing need-based Finance, especially for
agricultural and agriculture-based operations including Farming, cattle, milk, hatchery,
personal finance etc. along with some small Industries and self-employment driven
activities.

Co-operative Banking System is an important segment of the Indian Banking Set up.
At the advent of last century, these banks were established as a tool of state policy to
provide adequate, timely and cheap credit to peasants, to save them from the Clutches
of money- lenders.
These banks have played a crucial role in the Indian Financial system; and credit
Cooperative system of India is one of the largest in World. Co-operatives are the most
effective institution source to serve rural sector of Economy.

Generally,co-operative banks are governed by the respective co-operative acts of state

governments. But, since banks began to be regulated by the RBI after 1st March 1966,
these banks are also regulated by the RBI after amendment to the Banking Regulation
Act 1949. The Reserve Bank is responsible for licensing of Banks and branches, and it
also regulates credit limits to state co-operative Banks on behalf of primary co-operative
banks for financing SSI units.

A bank that holds deposits, makes loans and provides other financial services to
cooperatives and member-owned organizations. Also known as Banks for
Cooperatives. India's co-operative banking structure consists of two main segments,
viz., agricultural and non-agricultural credit. There are two separate structures in the
case of agricultural credit - one for short- and medium-term credit and the other for long
term credit.

The co-operative credit structure for short and medium terms is a three tier one with
primary agricultural credit societies at the base level, the central co-operative bank at
the district level and state co-operative bank at the apex level.

1.7 Definition of Co-operatives Banks

The co-operative societies Act, “The co-operative Bank involves autonomous

association of persons united voluntarily to meet their common economic, social and
cultural needs through a jointly owned and democratically controlled enterprise”.

According to Wikipedia, “Cooperative banking is retail and commercial banking

organized on a cooperative basis. Cooperative banking institutions take deposits
and lend money in most parts of the world.”

Another definition also states that, “A bank that holds deposits, makes loans and
provides other financial services to cooperatives and member-owned organizations.
Also known as Banks for
Cooperatives”.
1.8 History of Co-operatives bank

• The history of co-operative movement in India is about a century old. The

movement was started in India with a view to encourage and promote thrift and
mutual help for the development of persons of small means such as agriculturists,
artisans and other segments of the society.
• It was also aimed at concentrating the efforts in releasing the exploited classes out
of the clutches of the money lenders. Keeping this as one of the objectives, credit
societies were formed under Co-operative Societies Act of 1904.
• The 1904 Act was largely based on the English Friendly Societies Act, 1896. Under
this Act, only primary credit 45 societies were permitted to register and non-credit
and federal organizations of primary co-operative credit societies were left out.
• This lacuna was bridged by the Co-operative Societies Act, 1912. This Act paved
the way for the organization of central co-operative banks throughout the country.
But the provisions of 1912 Act were inadequate to meet the requirements of those
states where co-operative movement had made considerable progress. Bombay, the
pioneers in this regard passed a new Act, viz., the Bombay Co-operative Societies
Act, 1925.

1.9 Functions of Co-operative Banks

1. The main functions of the urban co-operative banks are to accept deposits from the
members and non-members. Deposits from the members are given reference to
deposits from nonmembers.

2. The second main function is to lend to members for useful purposes. Loans are also
given to non-members on the security of their deposits.

3. Third important function of these banks and the societies is to undertake purchase
and supply of essential consumers’ goods on an agency basis. But this is not
generally done. To conclude, the principal functions of urban co-operative banks
are to promote thrift, to advance loans on personal security or on mortgage of house
property, on pledge of gold and silver, produce, merchandise, Government
 securities, fixed deposit receipts, life insurance policies, land mortgage and bank
debentures.

1.10 Types of Co-operative Banks In India

The co-operative banks are small-sized units which operate both in urban and nonurban
centers. They finance small borrowers in industrial and trade sectors besides
professional and salary classes. Regulated by the Reserve Bank of India, they are
governed by the Banking Regulations Act 1949 and banking laws (co-operative
societies) act, 1965

The co-operative banking structure in India is divided into following 5 categories:

State Co - operative
Banks

Urban Co - operative Central or District

Banks Co - operative
Banks

Primary Co - operative
Land Development Credit Society
Banks

Fig 1.2
A) State Co-operative Banks

The state co-operative bank is a federation of central co-operative bank and acts as a
watchdog of the co-operative banking structure in the state. Its funds are obtained from
share capital, deposits, loans and overdrafts from the Reserve Bank of India.

The state co-operative banks lend money to central co-operative banks and primary
societies and not directly to the farmers.

In India the State Co-operative Banks (SCBs) or the apex banks occupy a crucial
position in the three-tier co-operative credit structure in India. These apex banks or State
Co-operative Banks are formed by federating DCBs in each state.

The apex banks assume a key-position in the co-operative credit structure because the
financial assistance from RBI and the National Bank for Agriculture and Rural
Development (NABARD) are invariably routed through them.

B) Central or District Co-operative Banks

These are the federations of primary credit societies in a district and are of two types
those having a membership of primary societies only and those having a membership
of societies as well as individuals. The funds of the bank consist of share capital,
deposits, loans and overdrafts from state co-operative banks and joint stocks.

These banks provide finance to member societies within the limits of the borrowing
capacity of societies. They also conduct all the business of a joint stock bank.

This category is considered to be better as it provides a combination of both rural and

urban population. Majority portion of the DCBs in India are of this type. The DCBs are
formed mainly with the objective of meeting the credit requirements of member
societies.
As an institution for helping the societies in times of need, they 54 finance agricultural
credit societies for production purposes, marketing societies for marketing operations,
industrial societies for supply operations and other societies for working expenses.

In short, the major objectives of the DCBs are to provide loans to affiliated societies, to
act as a balancing center of finance for primary societies, to arrange for the supervision
and control of the affiliated societies, to raise deposits from members and nonmembers,
to convene conferences of the member societies and also prescribe uniform procedure
for the working of primary societies, to open branches of the bank at important places
with the permission of the Registrar of Co-operative Societies and to maintain and
utilize state partnership. Generally, the area of operation of a DCB is limited to one
district.

In India District Co-operative Banks (DCBs) occupy the middle level position in the
three-tier cooperative credit structure of the country. In the beginning of the formation
of PACSs, 52 they could not function effectively without gaining financial support from
an outside agency. Over and above this, they were in need of technical guidance and
administrative support. At the same time, there were some societies which have gained
strength and possess surplus funds as well as talents.

C) Primary Co-operative Credit Society

The primary co-operative credit society is an association of borrowers and

nonborrowers residing in a particular locality.

The funds of the society are derived from the share capital and deposits of members and
loans from central co-operative banks. The borrowing powers of the members as well
as of the society are fixed. The loans are given to members for the purchase of cattle,
fodder, fertilizers, pesticides, etc.

Primary Agricultural Credit Societies (PACS) in India in India, PACS are passing
through an era of crisis. Increasing incidence of non-viability is one of the major
setbacks. PACS have made little progress in attracting deposits. In majority of the cases,
the deposits were collected through book adjustments by carving certain portion of loan
amount.

The repaying capacity of the PACS has been dwindled considerably, as a result mounted
overdue in the loan outstanding against members. Along with the increasing volume of
business the number of PACS running into loss and the amount of loss have increased
considerably over the years.

The important reasons for this situation are, existence of non-viable and dormant
societies, uneven growth of agricultural credit movement, inadequacy of the quantum
of loan supplied by them, defective loan policies, delay in loan disbursement,
inadequate supervision and defective audit, no linking of credit with marketing, high
over dues, ineffective management, neglect of small farmers and domination of vested
interests.

D) Land Development Banks

The Land development banks are organized in 3 tiers namely; state, central, and primary
level and they meet the long-term credit requirements of the farmers for developmental
purposes.

The state land development banks oversee, the primary land development banks situated
in the districts and tehsil areas in the state. They are governed both by the state
government and Reserve Bank of India. Recently, the supervision of land development
banks has been assumed by National Bank for Agriculture and Rural development
(NABARD). The sources of funds for these banks are the debentures subscribed by both
central and state government. These banks do not accept deposits from the general
public.
E) Urban Co-operative Banks

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to
primary cooperative banks located in urban and semi-urban areas. These banks, till
1996, were allowed to lend money only for non-agricultural purposes.

This distinction does not hold today. These banks were traditionally centered on
communities, localities, work place groups. They essentially lend to small borrowers
and businesses. Today, their scope of operations has widened considerably.

Dombivli Nagari Sahakari Bank Ltd

Fig 1.3
1.13 Introduction to DNS Bank

Dombivli Nagari Sahakari Bank Ltd. (DNS BANK) is the Multi-State Scheduled Bank located in
the Thane District, state of Maharashtra established on 6 September 1970. Having their Head office
in Dombivli, Thane District. Currently DNS Bank has 65 branches across 12 districts in state of
Maharashtra. Dombivli Nagari Sahakari Bank Ltd. got Scheduled status in the year 1996. In year
2006 this bank implemented Core Banking Services. DNS Bank is 1st Co-operative Bank to launch
Mobile Banking Services in India. DNS Bank has adapted latest technology to serve their customer
efficiently.

Dombivli Nagari Sahakari Bank fall under Scheduled Urban Cooperative Banks in India and it
regulatory body is Reserve Bank of India. Dombivli Nagari Sahakari Bank is one of the banks
where Core Banking Solution (CBS) is in operation. Dombivli Nagari Sahakari Bank is Live on
Unified Payments Interface (UPI).

1.14 History of DNS Bank

Way back in 60’s Few enthusiastic persons gathered together with a common goal to make
available the banking facility to the commonest of the common man. They had an aim that any
person in genuine financial difficulty or in need of finance to fulfill his dreams whether personal
or professional should have an institutional support and he should not be a prey of traditional
moneylenders. The dream of these persons came into existence by bearing a name i.e. Dombivli
Nagari Sahakari Bank Ltd. on 6th September, 1970.

Since then the bank has grown by leaps and bound. With a modest beginning in a small 500 sq. Ft.
of main branch cum central office, having deposit base of 7.04 lacs and total advances of 5.75 lacs
in June 1971, it has now reached a business mix of Rs. 7616 crores contributed by deposit of
Rs.4400 crores and Rs. 3273 crores of advances with 69 branches spread across 15 districts of
Maharashtra.

1.15 Milestones

• Scheduled status in 1996.

• Rs. 100 crores deposit in financial year 1994 to 1995.

• Rs. 500 crores deposit in financial year 2002 to 2003.

• Crossed Thane Dist. Border by opening Fort and Pune Branches in 2002-03.

• Core Banking Services from Year 2006.

• Merging of Shivneri Sahakari Bank with DNS Bank’s On 13 October 2007 and Suvarana
Mangal Mahila Sahakari Bank on 3rd January 2010.
• Crossed the milestones Rs. 4000 crores Business Mix in March 2013.

• Crossed the milestones Rs. 5000 crores Business Mix in March 2014.

• Crossed the milestones Rs. 6000 crores Business Mix in March 2015.

• Crossed the milestones Rs. 7000 crores Business Mix in March 2017.

1.16 Board Of Directors

Chairman - C.A. Mr. Uday Madhusudan Karve (C.A., L.L.B. (General))

Vice Chairperson - Mrs. Nandini Shashikant Kulkarni (B. Com., L.L.B.,

C.A.I.I.B.) Directors
• C.A. Mr. Jayant Balkrishna Pitre (B.Com., F.C.A. (D.I.S.A.))

• Mr. Milind Madhav Koparkar (Diploma in Mechanical & Electrical Engg.)

• Mr. Shivaji Sudam Patil (I.T.I)

• Mr. Purushottam Bhumayya Kunden (B.Com)

• Mr. Mahesh Siddheshwar Phanse (B.E(Civil), M.A. (Political Science))

• Mrs. Poorva Vidur Pendharkar (B.Com. Diploma in Finance Management)

• Adv. Mrs. Meghana Sachin Ambekar (B.Com, L.L.M.)

• Mr. Laxman Dharma Kharpade (B.Com)

• C.A. Mr. Vijay Vithoba Shelar (B.Com.,F.C.A.)

• Mr. Yogesh Dhananjay Walunjkar (D.Co. E., B.E. (Computer Engg.)

• Mr. Milind Mohan Arolkar (B. Com., B.J.)

• Mr. Jitendra Shyamjibhai Patel (B.E.(Civil))

Director-Employee Representative

• Mr. Arjun Shivshankar Salunke (B. Com)

• Mr.Deepak B. Gangode (B.A)

CEO and General Manager - Mr. Gopal Giridhar Paranjpe (M.A (Eco), LLB,
JAIIB)

1.17 CSR

• Medical checkup for Share Holders is arranged regularly.

• Donation to deserving NGO’s every year.

• “Director’s fund”, contributed by Board members, is used for social welfare.

• Meritorious Awards for the children of Shareholders as well as staff members are
distributed.

• Bank encourages co-operative societies by organizing competitions like “Best co-operative

Housing Society” and competitions like Eco-Friendly decorations at Ganesh-Utsav.

1.18 Introduction of Loan

Bank grant loan for a specific period of time. The loan may be granted to an individual
or a business organization. However, the bank grants such loan only against a personal
security (collateral) like gold, silver, real estate etc. The bank grants short term loans,
medium term loan or long-term loans.

Therefore, the period and rate of interest of the loan may vary depending on the type of
loan (i.e. short-term loans, medium term loan or long-term loans). The borrower may
withdraw the entire amount in lump sum or in tranches (instalments). However, interest
is charged only on the amount withdraw and not on the full amount.
In finance, a loan is the lending of money by one or more individuals, organizations, or
other entities to other individuals, organizations etc. The recipient (i.e. the borrower)
incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and also
to repay the principal amount borrowed. The document evidencing the debt, e.g. a
promissory note, will normally specify, among other things, the principal amount of
money borrowed, the interest rate the lender is charging, and date of repayment. A loan
entails the reallocation of the subject asset for a period of time, between the lender and
the borrower.

1.19 Types of Loan

Types of Loan

Secured Loan Unsecured Loan

Demand Loan Subsidized Loan

Concessional
Loan

A) Secured Loan

A secured is a loan in which the borrower pledges some asset as collateral. A secured
loan is also called as Mortgage loan.

A mortgage loan is very common type of loan, used by many individuals to purchase
residential property. The lender, usually a financial institution, is given security alien
on the title to the property until the mortgage is paid off in full. If the borrower defaults
on the loan, the bank would have the legal right to repossess the house and sell it, to
recover sums owing to it.
A secured loan or secured debt is when the borrower has committed to give the lender
certain assets, such as a real estate property or a car, if he or she defaults, i.e. fails to
make payments. The lender has recourse to seize the asset and sell it to recoup the
money lent.

Secured loans typically have lower interest rates because the loan is less of a risk for
the bank due to the collateral. Secured loans are also a good way to build credit if you
borrow from a reputable lender, such as a bank.

Types of secured loans:

• Mortgages

• Secured credit cards

• Secured personal loans

• Home equity loans

• Boat and RV loans

B) Unsecured Loan

A car loan and mortgage are the most common types of secured loan. An unsecured
loan is not protected by any collateral. If you default on the loan, the lender can't
automatically take your property. The most common types of unsecured loan are credit
cards, student loans, and personal loans.

An unsecured loan is a loan that is issued and supported only by the borrower's
creditworthiness, rather than by any type of collateral. Because unsecured loans,
sometimes referred to as signature loans or personal loans, are obtained without the use
of property as collateral, the terms of such loans, including approval and receipt, are
most often contingent on the borrower's credit score.

Borrowers must generally have high credit ratings to be approved for certain unsecured
loans.
C) Demand Loan

Demand loans are short-term loans that typically do not have fixed dates for repayment.
Instead, demand loans carry a floating interest rate which varies according to the prime
lending rate or other defined contract terms.

Demand loans can be "called" for repayment by the lending institution at any time.
Demand loans may be unsecured or secured.

A demand loan is a rare form of loan that can be called for complete repayment without
any prior warning to the borrower. In other words when the lender demands the money,
the borrower must pay it.

Loan (such as an overdraft) with or without a fixed maturity date, but which can be
recalled anytime (often on a 24-hour notice) by the lender and must be paid in full on
the date of demand. Also, the borrower can pay off a demand loan at any time without
incurring early-payment penalties. Also called call loan or money at call.

D) Subsidized Loan

Subsidized Loans are loans for undergraduate students with financial need, as
determined by your cost of attendance minus expected family contribution and other
financial aid (such as grants or scholarships).

Subsidized Loans do not accrue interest while you are in school at least half-time or
during deferment periods. A subsidized loan is a loan on which the interest is reduced
by an explicit or hidden subsidy.

E) Concessional Loan

A concessional loan, sometimes called a "soft loan", is granted on terms substantially

more generous than market loans either through below-market interest rates, by grace
periods or a combination of both.
Such loans may be made by foreign governments to developing countries or may be
offered to employees of lending institutions as an employee benefit. These are loans
that are extended on terms substantially more generous than market loans.

1.20 Loan Facilities Provided By DNS BANK

Home
loan
Business A) Housing Loan
loan
Personal
loan
Car
loan
Education
loan
Gold
loan
Loan against
FDLoan
Proper
against
ty
Fig1.5 Fig 1.
Fig 1.5

A loan given by a bank, Mortgage Company or other financial institution for the purchase of a
primary or investment residence.

In a home mortgage, the owner of the property (the borrower) transfers the title to the
lender on the condition that the title will be transferred back to the owner once the
payment has been made and other terms of the mortgage have been met.
A home mortgage will have either a fixed or floating interest rate, which is paid monthly
along with a contribution to the principal loan amount. As the homeowner pays down
the principal over time, the interest is calculated on a smaller base so that future
mortgage payments apply more towards principal reduction as opposed to just paying
the interest charges.

B) Personal Loan

Unsecured loans (called signature loans) are advanced on the basis of the borrower's
credit-history and ability to repay the loan from personal income. Repayment is usually
through fixed amount installments over a fixed term. Also called consumer loan.

A personal loan is a type of unsecured loan and helps you meet your current financial
needs. You don’t usually need to pledge any security or collateral while availing a
personal loan and your lender provides you with the flexibility to use the funds as per
your need.

It can serve as your solution for managing your travel costs and wedding expenses as
well as the expenses of a medical emergency, home renovation, debt consolidation and
others.

I) DNS Bank extends four types of personal loans as listed below:

a) Utsav Loan Scheme: The purpose of Utsav Loan Scheme is to extend finance for
the purchase of refrigerators, televisions and two-wheelers besides any other
durable items.
b) Suvidha Loan Scheme: The purpose of Suvidha Loan Scheme is to provide
finance for repayment of debts, tourism, medical expenses and any other purpose
which receives approval from DNS Bank.
c) Mortgage Loan Scheme: The purpose of mortgage loan scheme is to extend
finance for the purchase of any durable articles, education, business and medical
expenses among others.
d) Advances against Shares: The purpose of advances against shares is to provide
finance to meet any kind of personal requirements and contingencies.

II) Eligibility criteria for availing DNS Bank Personal Loan:

DNS Bank offers personal loans to the following:

a) Utsav Loan Scheme: Salaried individuals and self-professionals

b) Suvidha Loan Scheme: Eligible individuals

c) Mortgage Loan Scheme: Eligible individuals

d) Advances against shares: Individuals (single or joint name), companies’ demat

shares

III) Features and benefits of DNS Bank Personal Loan:

The features and benefits of DNS Bank personal loans are listed below:

• DNS Bank gives loans for a wide variety of purposes from consumer durable items
and medical expenses to education needs and repayment of old debts. The four
different types of loan schemes, therefore, cover any possible financial requirement
which may arise in the life of an individual.
• The repayment period ranges from a minimum of 12 months to a maximum of 60
months based on the type of loan taken by a customer.
• Customers who have specific business needs can avail of mortgage loan scheme and
advances against shares which provided the required finance

IV) Documents required for DNS Bank Personal Loans

• Hypothecation documents

• Residence proof (photocopy of ration card, telephone bill, electricity bill)

• IT Returns of last two years

• Bank statements

• Passport photographs

• Any other document as requested by DNS Bank

C) Vehicle Loan

Fig 1.7

A car loan (also known as an automobile loan, or auto loan) is a sum of money a
consumer borrows in order to purchase a car. Generally speaking, a loan is an amount of
money that is lent to an individual, a business, or another entity.

Car loans follow most of the same rules and procedures that apply to other loans. In most
cases when purchasing a car, a borrower will specifically apply for a car loan; however,
a consumer can also use a personal loan (a loan obtained by an individual to use at his or
her discretion) for the same purpose.

All car loans are for specific lengths of time, generally anywhere between 24 and 60
months, although some car loans can be for longer periods. This type of loan is also
known as financing. Car loans generally include a variety of fees and taxes, which are
added to the total loan amount.

I) Safar Vehicle Loan Scheme (Four-wheeler for Personal use)

Purpose: This loan finances the purchase of new two- wheeler / old two-wheeler.

Eligibility: Any individual with sufficient repayment capacity can avail this loan.

Quantum of Loan: The maximum amount of loan that is granted is Rs. 1 lakh.

Rate of Interest: The rate of interest for this personal loan is 11% per annum.
Margin: There is no margin for loans of amount up to Rs. 50,000/-. There is a margin of 10% for
loans of amount above Rs.50000/-.

Repayment: The maximum repayment period of the loan is 60 months.

Security & Guarantee: One guarantor of good means acceptable to the bank is required.
Hypothecation of the vehicle to be acquired through bank finance is taken as security.

• Safar Vehicle Loan Scheme (Four-wheeler for Personal use)

• Vehicle Loan for 2-Wheeler

D) Education Loan

Fig 1.8

Education loan is also called as student loan. A student loan is a type of loan designed
to help students pay for post-secondary education and the associated fees, such as
tuition, books and supplies, and living expenses.

It may differ from other types of loans in the fact that the interest rate may be
substantially lower and the repayment schedule may be deferred while the student is
still in school. It also differs in many countries in the strict laws regulating renegotiating
and bankruptcy. This article highlights the differences of the student loan system in
several major countries.
Many of these loans are offered to students at a lower interest rate, such as the Perkins
loan or Stafford loan. In general, students are not required to pay back these loans until
the end of a grace period, which usually begins after they have completed their
education.

Purpose: Foer higher education in India or abroad this personal loan can be availed.

Eligibility: Student + Parents / guardian as co-applicants

Quantum of Loan: The maximum amount of loan that is granted for studies in India is
Rs. 10 lakhs, and for studies abroad it is Rs.20 lakhs.

Rate of Interest: The rate of interest is 10.5% for loans up to Rs.5 lakhs, 11% for loans
between Rs.5 lakhs to Rs.10 lakhs and 11.5% for loans above Rs. 10 lakhs. There is a
concession of 0.5% for girls.

Margin: There is a margin of 10%.

Repayment: Maximum 7 years including- moratorium period (Duration of course +6

months).
Security and Guarantee: Minimum two guarantors satisfactory to the bank are needed. For
loans above Rs.5 lakhs tangible security is required.

E) Gold Loan

Fig 1.9
Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge.
Personal loan is sanctioned on the basis of source of income and repayment capacity of
an applicant. It is true that Gold loans, like personal loans or credit card borrowings,
are often used for short term household requirements.

When you pledge gold – including jewellery and bank-issued coins – as collateral for
taking out a loan, it is known as a gold. The gold is kept as security against payment
default. The customer can get a loan amount that is a certain percentage of the value of
the gold that has been pledged. A gold loan is often considered a good option because
it has a simple documentation process and disbursal is speedy, if the loan is approved.

Suvarna Taaran - Pledge of gold and gold ornaments.

Eligibility: Any Individual.

Loan Limit:

- Need Based

- Rs.16000/- per 10 grams of pure

gold OR
- 70% of valuation whichever less.
Repayment Schedule: 12 months

Guarantors: Nil

Security: Pledge of Gold Ornaments

Repayment:

-Gold Loan up to Rs.2 lacs with bullet repayment option.

-Gold Loan above Rs. 2 lacs, with EMI, based on calculate repayment capacity of the
applicant.

F) Corporate Loans

1) Multipurpose-Samrudhi

• Samrudhi Yojana

• Small & Micro Enterprises (SMEs):

 Fig 1.10

For a business on the growth phase with a wide range of opportunities to explore, timely
availability of credit is essential to scale new heights. At DNS Bank we see ourselves
as partners to Clients business, enabling them to focus on their business needs.

Finance can be availed to:

• For Purchase of Factory Premises

• For Purchase of Machinery

• Working Capital

• Revamp / Replacement of Machinery

• Various options are available for interest and capital subsidy.

2) Yashwanth - Loan Scheme for Professionals

• This scheme is open for all Professionals from various fields.

• Medical PR actioners, Dentists.

• Chartered Accountants / Cost Accountant / Tax Consultants.

• Architects / Interior Decorators.

• Consulting Engineers / Surveyors.

• Management Consultants / Software Professionals

1.21 Bank Loan Advantages

1. Flexibility:

You only need to worry about making your regular installment payments on time. This
is an advantage over overdrafts, where you must pay the full amount when the bank
demands it. Banks don't usually monitor how you use your loan as long as you make
your payments on time, so you can invest it however you deem fit.

2. Cost Effective:

In terms of interest rates, bank loans are usually the cheapest option vs. overdrafts and
credit cards. The average fixed interest rate for credit cards has surged to 17.49 percent.
Certain bank-provided loans guaranteed by the Small Business Administration have
rates ranging from 7.5 to 10 percent.

The lower interest rates of bank loans will definitely save you money.

3. Retained Profits:

While businesses that issue equity to raise capital often give a percentage of their profits
to shareholders, banks require borrowers to pay only the principal and interest amount
on a loan. As such, you will retain all your business profits.

4. Tax Benefits:

When you use a bank loan for business reasons, the interest you pay on the loan is a
tax-deductible expense.
1.22 Bank Loan Disadvantages

1. Strict Requirements:

Bank loans require some form of collateral, startups and existing businesses without
any assets can find it difficult to get their loan applications approved. If these borrowers
choose to go for unsecured loans, they are hit with higher interest rates.

2. Repayment Burden:

Loan borrowers must make periodic payments to their banks. Those who fall behind on
payments face the prospect of having their assets seized. Even if you manage to make
late payments, your bank could still report you to credit bureaus a move that negatively
affects your credit score. With a lower score, obtaining loans in the future becomes
more difficult.

The repayment burden is a disadvantage compared to raising money through

shareholders, because shareholders don’t require regular repayments.

3. Irregular Payment Amounts:

If you get a bank loan with a variable interest rate, the rate changes with market
conditions. This makes it difficult to determine the exact amount of future payments.
Consequently, it becomes challenging to make sound financial plans.
1.23 Rate of interest charged by DNS bank

Rate of Interest Charged By DNS Bank (Approximately)

1. Home loan

For other (For loans up to & PLR - 3.75 Rate of interest - 8.25%
including Rs. 25 lakhs)

For women (For loans above PLR – 3.60 Rate of interest – 8.40%
Rs. 20 lakhs & up to and

including Rs. 70 lakhs)

For other (For loan above Rs. PLR – 3.50 Rate of interest – 8.50%
20 lakhs & up to and including

Rs. 70 lakhs)

2. Business loan

Rate of interest between 7.25% - 9.75%

3. Personal loan

Rate of interest between 12% - 15%

4. Car loan

Period For new customer Exiting Customer

Up to 3 years Rate of interest 9.00% Rate of interest 8.90%

Above 3 years to 5 years Rate of interest 9.25% Rate of interest 9.10%

 5 Years to 7 years Rate of interest 10.00% Rate of interest 9.75%

5. Education loan

• Up to 10 lakh - Rate of interest 12.50%

• Above 10 lakh - Rate of interest 13.50%

6. Gold loan

Rate of interest between 10.60% - 11.10%

7. Loan against FD

Rate of interest between 2% - 6%

8. Loan against property

Rate of interest between 8.65 % - 11.25%

1.24 Basic document required for loan application

1. Completed loan application

2. Proof of
identificat
ion a)
Driving
license
b) Ration card

c) PAN card
 d) Passport

e) Voter ID

f) Bank passbook etc.

3. Proof of age

a) PAN card

b) Birth certificate

c) Aadhar card

d) 10th Certificate

e) Bank passbook etc.

4. Address proof

a) Aadhar card

b) LIC policy receipt

c) Voter ID

d) Bank account statement OR

e) Bank passbook

f) Utility bill (water bill, electricity bill, gas bill) etc.

5. Income document

Salaried individual:

o Form 16

Certified letter from employer o Pay slip (last 3 months) o Increment OR

promotion letter (if any) o IT return (last 3 years) etc.

Self-employed or businessman:
 o Last 3 years income tax return of the applicant along with computation of
income duly attested by a Chartered Accountant.
o Last 2 years balance sheet, profit and loss account of the firm duly attested
by a Chartered Accountant.

Self-employed individual also has to submit:

o An introduction of his profession / business o Passport size photo

o Photocopy of registration certificate establishment under shop &
establishment Act / Factor Act.
o Photo copy of registration certificate for deduction of profession tax

o Proof of investment o Certificate of practices o Receipt of advance tax

payment (if any).

1.25 Procedure for take a loan from DNS BANK

1. Fill the loan application form & Attach the document:

a. Loan application form:

• The personal details of the applicant (Name, phone number, etc.)

• The residential address of the applicant

• The monthly or yearly income statement of the applicant

• The educational information of the applicant
• The employment details of the applicant etc.

b. Attach Documents:

• Applicant’s income proof

• Applicant’s ID proof

• Applicant’s age prof

• Applicant’s address proof

• Applicant’s employment details (i.e. salary slip etc.)

 • Applicant’s educational proof
• Applicant’s bank statement etc.

2. Pay the processing fees

3. Discussion with bank

4. Valuation of the document

5. The approval processes

6. Processing the offer letter

7. The final loan deal, signing the agreement & terms and conditions.

1.26 KYC Documents

1. KYC application from respected bank.

2. Self-attached copy of PAN card is compulsory.

3. Proof of address: - List of documents admissible as Proof of address:

a. Passport
b. Voter ID card
c. Aadhar card
d. Ration card
e. Sale agreement / Registered
lease
f. Driving license
g. Telephone bill / Light bill/ Gas
receipt etc
h. Gas receipt etc.
 CHAPTER NO: 2 RESEARCH AND METHODOLOGY

2.1 OBJECTIVES

To study awareness among people regarding Co-operative bank loan policies.

To know the rate of interest of loan provided by the bank.

To get the knowledge about the loan given by Bank.

To find the satisfaction level of customer about the loan provided by Banks.

To understand the problem faced by the people regarding the loan provided by the DNS
Bank.

2.2 HYPOTHESIS

H0: A customer are fully satisfied by the loan policies of DNS Co-operative Bank.

H1: A customer faced many problems regarding the loan policies of DNS co-operative
Bank.

2.3 SCOPE OF THE STUDY

The study was conducted on selected customer who having bank account with

Dombivli Nagari Sahakari Bank Ltd. (DNS BANK) Dombivli East Branch

The study tried to find out the various rate on interest on loan policies of DNS Co-
operative bank, satisfaction level of customer. However, it also includes their attractive
schemes on loan policies etc.
2.4 LIMITATIONS OF THE STUDY

The time constraint was one of the major problems.

The study is limited to the different schemes available under loan policies of DNS Co-
operative bank.

The study is limited to selected attractive schemes of loan policies.

The lack of information source for the analysis part.

2.5 SIGNIFICANCE OF THE STUDY

DNS Co-operative bank allows their customer to benefits from its growth. The last few
years.

Co-operative bank have pick up significantly and has given dimension to Indian
banking segment.

The DNS Co-operative bank route has unique characterized to significant to their
customer. It is specialized schemes of loan which customer taken from DNS Co-
operative bank under the guideline of banking regulation act. While ensuring safety and
steady re-payment of loan is important part of banking segment. It is considered to be
one of the best lending money type in India. It is mainly because of rules and regulation
over the years. Taking a loan is considered to be easy way to landing money.

2.6 SELECTION OF THE PROBLEM

In this study it is observed or attempt made to understand the fact which is been made or perceived
as important by the customer while taking a loan from DNS Cooperative bank. The customer of
DNS Co-operative bank was surveyed through a structure Questionnaire. The study was mainly
focused on loan policies of DNS Cooperative bank and their rate of interest. They revealed the
various factor that drive the attractive schemes of loan policies of DNS Co-operative bank.
2.7 SAMPLE SIZE

The sample size of my report was limited to 60 respondents only.

2.8 DATA COLLECTION

To achieve the objective of studying the loan policies data has been collected.

Research methodology carried for this study can be two types:

Primary

Secondary

• PRIMARY

The study is totally based on primary data. The data has been collected by interacting
with various people i.e. by source of questionnaire. The questionnaire was designed
from collecting feedback on a study of loan policies of DNS Co-operative bank.

• SECONDARY

The secondary information is mostly taken from website, book, journal etc.

2.9 TECHNIQUES AND TOOL

The present data has been presented with the help of various

GRAPH

PIE- DIAGRAM
 CHAPTER 3: LITERATURE REVIEW

 Singh (1976)

Conducted a case study on distribution and utilization of Co-operative credit in

Lucknow district. Regarding the amount of loan advanced to the famers of
different size of group, it was observed that a major share of total advance
went to large famers.

 Pandey (1977)

In his study found that loan were issued mostly without keeping in the mind of re-
payment capacity of borrowers and were not properly supervised by Cooperative
supervisors resulting in the diversion of the loan for unproductive purpose and
accumulation of over dues.

 Bhatia (1978)

In this study titled, “Banking structure and performance- A case study of the

Indian Banking system” attempted to analyses the economic performance of Indian

banking system as reflected by its output price and profitability during the period 1950-
68.

 Devadas (1987)

In his book titled “Co-operative banking and economic development studied

the role of
Assam Co-operative Apex bank Ltd” in economy of the state. He found that
apart from working as a commercial bank it had to discharge three other
functions, i.e. finance primary credit societies, to act as banking center for
primary societies and to undertake primary societies. He found that bank had
not been able to achieve much in these three fields due to lack of adequate
support from government of the state.

 Goyal and Joshi (2011)

Have concluded in their study on social and ethical aspects of banking industry that
bank can project themselves as a social and ethical oriented organization by simply
disbursing loan to those social, ethical and environmental concern organization.
  David (2008)

Observed in this study that comparing to private mortgage insurance (PMI), there has been an
increase in submission of home loans between 2001 and 2008.
 CHAPTER NO. 4: DATA ANALYSIS, INTERPRETION AND PRESENTATION

(1) Gender

40 36
35
30
24
25
20 Male
15 Female
10
5
0
Male Female

FINDINGS: -The fig 4.1 shows male Customer are 36 and female Customer were 24
overall.

INTREPRETATION: - As the survey show that there are more male Customer than
female in the DNS Bank.
 (2) Age Group

30
25
25

20
17 17 20 - 30 Yr.

15 30 - 40 yr.
40 - 50 yr.
10
50 - 55 yr.
5
1
0
20 - 30 Yr. 30 - 40 yr. 40 - 50 yr. 50 - 55 yr.

FINDINGS: from the fig 4.2 it is seen that Customers from the age group of 20-30 is
17, between the age group of 30-40 it is 25, the age group of 40-50 is 17, and between
the age group of 50-55 is only 1.

INTREPRETATION: from the survey it is noticed that Customer belonging to the

age group of 30-40 Customer are more rather than age group of 20-30 and the rest.
 (3) Marital Status: -

60
48
50

40

30 Married
Unmarried
20
12
10

FINDINGS: -In the fig 4.3. it is seen that 48 Respondent are married and 12 Respondent are
unmarried.

INTREPRETATION: - It is surveyed that majority of Respondent are married.

(4) Profession/ Occupation

45 41
40
35
30
Student
25
19 Businessmen
20
15 Pvt. Employee

10 Govt.Employee

5
0 0
0
Student Buisnessmen Pvt. Govt.
Employee Employee

FINDINGS: fig 4.4. Shows that 19 respondents are businessmen were, 41 respondents are
private employee.

INTERPRETATION: from the above chart it is seen that or concluded that majority of the
salaried person are Customer of DNS bank.
5).Income

4%

20% 30%
0-1lac
1lac-5lac
5lac-10lac
10lac & above

46%

FINDINGS: fig 4.5. As per above pie diagram the income group of 0-1lakh is about 30% The
income group of 1-5lakh is about 46% The income group of 5-10lakh is about 20% The income
group of 10lakh & Above 4%

INTERPRETATION: from the above chart it is seen that or concluded that majority of the
person in income 1lac-5lac.
6)Are you Primary Member in Your Family?

39.34% Yes
No
60.66%

FINDINGS: from the fig 4.6 there are 37 respondent who have Primary Member in family , 24
respondents have Not Primary member in family.

INTERPRETATION: from the survey it is seen that majority of customer have Primary
member of family.
 (7) Do you have Bank account with DNS Bank?

70
60
60

50

40
Yes
30 No

20

10
0
0
Yes No

FINDINGS: from the above fig 4.7 it is show that all the 60 respondents have bank account
with DNS bank.

INTERPRETATION: from the above chart we can conclude that majority of the people are
customers of DNS Bank.
(8)From How Many Years You Have Account in This Bank?

4.92%

21.31% Less Than a Year

40.98%
1-2 Year
2-5 Year
5 Year & Above

32.79%

FINDINGS: - from the fig 4.8 it is seen that ,25 respondents who have a/c in less than a Year. 20
respondents who have a/c in 1-2 Year . 12 respondents who have a/c in 2-5 Year, and only 3
respondent who have A/c 5 year And Above, this survey is out 60 respondents.

INTERPRETATION: from the above it seen that, there are 25 respondent who A/c in less than
a Year . and least respondent deals 5yr & Above
(9) Which type of Account you have?

45
39
40
35
30
25 Saving Account
20
20 Current Account
15 Recurring Account
10 Other
5 1
0
0
Saving Current Recurring Other
Account Account Account

FINDINGS: from the fig 4.9 there are 39 respondent who have saving account, 20 respondents
have current account and other account only 1respondent.

INTERPRETATION: from the survey it is seen that majority of customer have saving account
rather than other account.
 (10) Are you regular Customer of bank?

40 38

35

30

25 22
20 Yes
No
15

10

0
Yes No

FINDINGS: from the fig 4.10 there are 38 respondent are regular customer of bank , and 22 are
not regular customer of bank

INTERPRETATION: from the survey it is seen that majority of customer are regular visiting to
the bank.
(11) Have you taken a loan from DNS Bank?

70
60
60

50

40
Yes
30 No

20

10
0
0
Yes No

FINDINGS: from the above fig 4.11 it is show that all the 60 respondents have taken loan from
DNS bank.

INTERPRETATION: from the above chart we can conclude that majority of the people are
customers have taken loan from DNS Bank.
(12) For what purpose you have taken a loan?

16

14
12
12 11
10
10

8 New Home
Personal Loan
6
Vehicle Loan
4
Educatin Loan
2
Business Loan
0
New Home Personal Vehicle Loan Education Business
Loan Loan Loan

FINDINGS: - from the above fig 4.12 it seen that,11 respondent are have taken loan for New
home,10 respondent taken loan as Personal loan,12 respondent taken loan for vehicle,12
respondent for Education and remaining 15 respondent for Business purpose,

INTERPRETATION: -from the above survey, Business loan are more than loan other loan.
(13) What is your loan amount?

FINDINGS: - from the fig 4.13 it is seen that,17 respondent have taken amount of loan is
Rs.50,000-1,00,000 ,29 respondent have taken loan amount of Rs.1,00,000-5,00,000,9 respondent
have taken loan amount of Rs.5,00,000-10,00,000 and remaining 5 respondent have taken loan
amount of Rs.10,00,000 & Above.

INTERPRETATION: from the above it seen that, amount of loan ranging from
Rs.1,00,0005,00,000 are more and least amount of loan is Rs.10,00,000 & Above.
 (14) Are You Aware About Loan Penalty?

Loan Penalty

21.31%
Yes
No

78.69%

FINDINGS: - from the fig 4.14 it is seen that, 48 respondent know loan penalty charges and 12
respondent not Know loan Penalty Charges.

INTERPRETATION: from the above it seen that, majority of Customer said that aware About
loan penalty charges.

.
(15) What Procedure followed by a Bank during a loan?

33
32
32

31

30
Easy
29 Complicated
28
28

27

26
Easy Complicated

FINDINGS: - from the fig 4.15 it is seen that, 32 respondent said that procedure followed by
bank is Easy Procedure and 28 respondent said that procedure followed by bank is complicated.

INTERPRETATION: from the above it seen that, majority of Customer said that Easy
Procedure followed by Bank, rather than complicated procedure.
 (16) For how many years you have taken a loan?

30
25
25

20
16 1-5 Yr

15 5-10 Yr
12
10-15 Yr
10
7 15-20 Yr

0
1-5 Yr 5-10 Yr 10-15 Yr 15-20 Yr

FINDINGS: - from the fig 4.16 it is seen that ,12 respondents who deals 1-5 yrs. 25 respondent
who deals 5 to 10 yrs. 16 respondent who deals 10 to 15 yrs., and only 7 respondent who deals
1520 yrs., this survey is out 60 respondents.

INTERPRETATION: from the above it seen that, there are 25 respondent who deals
15-10 yr. and least respondent deals 15-20 yr.
 (17) How much time taken by a bank for loan approval?

25

20
20 19

15 14
5-15 Days
15-25 Days
10
7 25-35 Days
35 Days & Above
5

0
5-15 Days 15-25 Days 25-35 Days 35 Days &
Above

FINDINGS: - from the fig 4.17 it is seen that, 14 respondents said that 5-15 days taken for loan
approval,20 respondent said that 15-25 days taken for loan approval,

19 respondents said that 25-35 days taken for loan approval and remaining 7 respondents said
that 35 days & above taken for loan approval.

INTERPRETATION: from the above it seen that, 15-25 days respondent are more than other.
 (18) How much is your EMI Amount ?

25
21 21
20

15
11
RS.1,000-5,000
10 7
Rs.5,000-10,000
5
Rs.10,000-15,000
0 Rs.15,000 & Above

FINDINGS: - from the fig 4.18, it is seen that, 11 respondents pay there EMI amount of
Rs.1,0005,000, 21 respondent pay there EMI amount of Rs.5,000-10,000,

21 respondents pay there EMI amount of Rs.10,000-15,000, and remaining pay there EMI
amount of Rs.15,000 & Above.

INTERPRETATION: from the above it seen that, amount of EMI ranging from Rs.5,000-
10,000 and amount of EMI ranging from Rs.10,000-15,000 are Equal and Least amount of EMI
Is Rs.15,000 & Above is less.
19) Are you satisfied with the loan policies?

70
59
60

50

40
Yes
30 No

20

10
1
0
Yes No

FINDINGS: from the above fig 4.19, 59 respondents are satisfied with the loan policies, and 1
respondent are not satisfied with the loan policies

INTERPRETATION: from the above findings, there are highest respondent who are satisfied,
rather than unsatisfied with the loan policies.
(20) Do you get the guidance or help from the staff related to loan process?

60 56

50

40

30 Yes
No
20

10
4

0
Yes No

FINDINGS: from the above fig 4.20, 56 respondents said that they got the guidance and help
from the staff related to loan process and only 4 respondents said that they didn’t got guidance or
help from the staff related to loan process.

INTERPRETATION: from the above findings, there are highest respondent who are
said that they helpful and got guidance from the staff related to loan process.
 (21) During a loan process did you have any complaints about DNS bank?

60

49
50

40

30 Yes
No
20
11
10

0
Yes No

FINDINGS: from the above fig 4.21, 11 respondents have complaint during a loan process and
49 Respondents didn’t have any complaint.

INTERPRETATION: from the above findings, majority of Customer are fulfilled from the loan
Process and didn’t have complaint.
(22) What is the reason for choosing this bank for loan?

FINDINGS: from the above fig 4.22, 13 respondents choose this bank due to attracting
scheme,30 respondent choose this bank due to goods service from bank and remaining 17
respondents due to Other reason.

INTERPRETATION: from the above findings, there are majority of respondent choose this
bank due to good service from bank.
(23) Are you satisfied with your bank loan services?

60
55

50

40

30 Yes
No
20

10

0
Yes No

FINDINGS: from the above fig 4.23, 55 respondents are satisfied with the bank loan policies
and only 5 respondents are unsatisfied with the bank loan service.

INTERPRETATION: from the above findings, there are highest respondent who are
satisfied, rather than unsatisfied with the bank loan service.
 (24) Do you expect a certain more level of service from you bank?

50
44
45
40
35
30
25 Yes

20 No

15
10
5
0
Yes No

FINDINGS: from the above fig 4.24, 44 respondents expect that a certain level of service
from the
Bank, and 16 respondents don’t expect a more level of service from the bank.

INTERPRETATION: from the above findings, there are highest respondent who expect
more level of service from the bank.
(25)Would you like to Refer Your Friends / Relative to Take Loan A DNS Bank?

14.75%
Yes
No

85.25%

FINDINGS: from the above fig 4.25, 52 respondents are Refer to Friends/Relative , and 8
Respondents Are not Refer to Friends/Relative.

INTERPRETATION: from the above findings, there are highest respondent who are Refer
to Friends/Relative, rather than not Refer to Friends/Relative.
 CHAPTER NO. 5: CONCLUSION, FINDINGS

AND SUGGESTIONS

CONCLUSION

 The Indian banking sector is broadly classified into Schedule & Non-
schedule banks.
 Banking in India in the modern sense, originated in the decoded of 18 th
century.
 Co-operative banking system is an important segment of Indian banking set
up.
 Co-operative are the most effective institution source to several rural sector
of economy.
 Co-operative bank is also regulated by RBI amendment to the banking
regulation act 1949.
 Co-operative bank is established under Co-operative Societies act of 1904.

 Co-operative bank is Supervise and regulated under central bank of the

county.
 Resource of finance of DNS bank Consist of their funds and borrowed
funds.
 DNS bank grant a loan for a specific period i.e. short-term loan, medium-
term loan, long-term loan.
 There are various loan policies provided by DNS bank.
FINDINGS

 DNS bank loan schemes is considered the important factor while selecting
a loan policy

 Rate of interest is also effective element while selecting a loan policy.

 It has been found that the procedure of loan is very simplified with help of
the bank. Customer can be solved their queries related loan procedures with
bank staff.

 Majority of the customer are having saving account with DNS bank.

 The sex-ratio of the customer majority show that there is more male
customer than female.

 It is found that the majority of people having bank account with DNS bank.
 It is observed that most of the customer taken loan from DNS bank.

SUGGESTIONS

 Most of the customer are not aware of relating schemes of loan more efforts should be
made to this concern.
 Rate of interest that are obsolete should be replaced with new rate of interest.

 Providing a loan policy should be safe, transparent and under the guideline of reserve
bank of India.
 Disclosure of rate of interest schemes objective & period of loan should be notified by
customer.

 There should be no language restriction among bank and customer people should be
able to communicate freely.
 BIBLIOGRAPHY

Name of the Books Name of the Author Publication

Indian Banking Parameswaran S. CHAND &

Natrajan COMPANY LTD

Banking Theory and K.C Shekhar Vikas Publication

Practices Lakshmi Shekhar

Banking Law & K.P Kandasami S. CHAND &

Practices S. Natrajan COMPANY LTD

R. Parameshwaran
 ANNEXURE

QUESTIONNAIRE

NAME:

1. Gender

1) Male

2) Female

2. Age

1) 20-30

2) 30-40

3) 40-50

4) 50 & Above

3. Marital Status

1) Married

2) Unmarried

4. Occupation

1) Student

2) Businessman

3) Service

4) Other
5. Income

1)0-1lakh

2) 1lakh-5lakh

3)5lakh-10lakh

4) 10lakh & Above

6. Are You Primary Member in Your Family?

1) Yes

2) No

7. Do You Have Bank Account With DNS Bank?

1) Yes

2) No

8. From How Many Years You Have Account in this Bank?

1) Less Than A Year

2) 1-2 Year

3) 2-5 Year

4) 5 Year & Above

9. Which Type Of Account You Have?

1) Saving A/c

2) Current A/c

3) Recurring A/c

4) Other

10. Are You Regular Customer Bank?

1) Yes

2) No
11. Have You Taken A Loan From DNS Bank?

1) Yes

2) No

12. For What Purpose You Have taken a Loan?

1) New Home

2) Personal Loan

3) Vehicle Loan

4) Education Loan

5) Business Loan

13. What Is Your Loan Amount?

1) Rs. 50,000 - 1lac

2) 1lac - 5lac

3) 5lac – 10lac

4) 10lac – Above

14. Are You Aware About Loan Penalty?

1) Yes

2) No

15. What Procedure Followed By A a Bank During A Loan?

1) Easy

2) Complicated

16. For How Many Years You Have Taken Loan?

1) 1 - 5 Years

2) 5 - 10 Years

3) 10 -15 Years

4) 15 - 20 Years
17. How Much Time Taken By A Bank For Loan Approval?

1) 5 - 15 Days

2) 15 – 25 Days

3) 25 – 35 Days

4) 35 Days & Above

18. How Much Is your EMI Amount?

1) 1,000 – 5,000

2) 5,000 – 10,000

3) 10,000 – 15,000

4) 15,000 & Above

19. Are You Satisfied With The Loan Policies?

1) Yes

2) No

20. Do You Get The Guidance or Help From The Staff Related To Loan Process?

1) Yes

2) No

21. During A Loan Process Did You have Any Complains About DNS Bank?

1) Yes

2) No

22. What Is The Reason For Choosing The Bank For Loan?

1) Attractive Schemes

2) Goods Service From Bank

3) Other

23. Are You Satisfied With Your Bank Loan Services?

1) Yes

2) No
24. Do You Expect A Certain More Level of Services From You Bank?

1) Yes

2) No

25. Would You Like To Refer Your Friends/ Relative To take Loan On DNS Bank?

1) Yes

2) No