Project Report

“A Study of Various Vehicle Loan provide by HDFC Bank in

Nagpur.”

Submitted to:

DMSR
G.S. College of Commerce and Economics, Nagpur
(An Autonomous Institution)

In partial fulfilment for the award of the degree of

Master of Business Administration

Submitted by:

Prachee Vishnu Kubade

Under the Guidance of:

Dr. Kamlesh Thote

Department of Management Sciences and Research,

G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

1
 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

CERTIFICATE

This is to certify that Prachee Vishnu Kubade has submitted the project report
titled “A Study of Various Vehicle Loan provide by HDFC Bank in Nagpur”,
towards the partial fulfilment of MASTER OF BUSINESS
ADMINISTRATION degree examination. This has not been submitted for any
other examination and does not form part of any other course undergone by the
candidate.

It is further certified that she has ingeniously completed her project as prescribed by
DMSR, G. S. College of Commerce and Economics, Nagpur, (NAAC Reaccredited
"A" Grade Autonomous Institution) affiliated to Rashtrasant Tukadoji Maharaj
Nagpur University, Nagpur.

Dr. Kamlesh Thote Dr. Sonali Gadekar

(Project Guide) (Coordinator)

Place: Nagpur

Date:

2
 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

DECLARATION

I here-by declare that the project with title “A Study of various Vehicle Loan
Provide by HDFC Bank in Nagpur” has been completed by me in partial
fulfilment of MASTER OF BUSINESS ADMINISTRATION degree
examination as prescribed by DMSR, G. S. College of Commerce and
Economics, Nagpur, (NAAC Reaccredited "A" Grade Autonomous
Institution) affiliated to Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
and this has not been submitted for any other examination and does not form the
part of any other course under taken by me.

Ms.Prachee Vishnu Kubade

Place: Nagpur
Date:

3
 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this golden opportunity to express
my sincere regards to Dr. Swati Kathaley, Principal, G. S. College of Commerce &
Economics, Nagpur.
I am extremely thankful to my Project Guide Dr. Kamlesh Thote for his guidance
throughout the project. I tender my sincere regards to the Co-Ordinator,
Dr. Sonali Gadekar for giving me guidance, suggestions and invaluable
encouragement which helped me in the completion of the project.
I will fail in my duty if I do not thank the non-Teaching staff of the college for their
Co-operation.
I would like to thank all those who helped me in making this project complete and
successful.

Ms. Prachee Vishnu Kubade

Place: Nagpur
Date:

4
 INDEX

Chapter Chapter Page

Name

No. No.
1 Introduction 6
2 Company Profile 19

3 Review of Literature 24

4 Objective of study 27

5 Scope of study 28

6 Need of Study 29

7 Limitation of study 30

8 Research Methodology 31

9 Analysis and Interpretation of Data 35

10 Finding 46

11 Conclusion 47

12 Suggestion 48

13 Bibliography 49

14 Questionnaire 50

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 Introduction

A vehicle loan (also known as an automobile loan, or auto loan) is a

sum of money a consumer borrows in order to purchase a vehicle. Generally speaking, a loan
is an amount of money that is lent to an individual, a business, or another entity. The party
that lends the money is known as the lender, while the party borrowing the money is called
the borrower. When taking out a loan a borrower agrees to pay back the full loan amount, as
well as any interest (a percentage of the loan amount, usually calculated on an annual basis),
by a certain date, typically by making monthly payments.

Vehicle loans follow most of the same rules and procedures

that apply to other loans. In most cases when purchasing a vehicle, a borrower will
specifically apply for a vehicle 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
vehicle loans are for specific lengths of time, generally anywhere between 24 and 60 months,
although some vehicle loans can be for longer periods. This type of loan is also known as
financing. Vehicle loans generally include a variety of fees and taxes, which are added to the
total loan amount.

Many consumers apply for vehicle loans at their local bank. When applying for
a vehicle loan a borrower will usually begin by specifying how much money he or she wants
to borrow. The borrower will then provide information about his or her financial situation,
beginning with income (the amount of money he or she earns by working). Most lenders will
require the borrower to provide some proof of employment, usually in the form of a pay stub
(the portion of a paycheck that includes information about an employee’s earnings, which an
employee keeps for his or her records) or a copy of a tax return (the form submitted by
individuals when paying taxes). The lender will also check the borrower’s credit report. A
credit report is a detailed record of an individual’s past credit (in short, borrowing) activities,
whether in the form of loans or other debts (money owed). If the prospective borrower has a
bad credit history, he or she may be ineligible for a vehicle loan.

Often a bank or financial institution will preapproved certain customers for vehicle loans. In
these situations, a consumer has a certain number of days (often 30, sometimes 45) to decide
whether to seek full approval for a car loan. Because most borrowers secure a car loan before
actually shopping for a car, when an application for a car loan is approved, a lender will
generally give the borrower a maximum amount he or she will be able to borrow. The
borrower is then free to use this money to purchase the car of his or her choosing; however,
the borrower is not required to spend the full amount offered by the lender. For example,
while a bank might approve a car loan of $50,000 for a long-term customer, that customer
has the right to spend only a fraction of that amount.

6
WHEN DID IT BEGIN

The car loan officially originated in 1919, when the General Motors
Corporation (an automobile manufacturer founded in 1908 in Flint, Michigan) established
the General Motors Acceptance Corporation, or GMAC. GMAC arose in response to the
growing demand for automobiles among American consumers after World War I. In 1919
GMAC established offices in five North American cities; a year later it opened its first office
in Great Britain. As the car loan business expanded, other automobile manufacturers began
to develop their own financing divisions. One of the most prominent was the Ford Motor
Credit Company, founded in 1923. Although car loans were available most American
consumers during the first half of the twentieth century paid cash for their automobiles.

When a borrower takes out a loan on a car, he or she is

agreeing to buy the car. Upon entering into the loan agreement the borrower gains the right
to drive the car, while also taking possession of the car’s title (a document showing proof of
ownership of a piece of property). Technically speaking, however, the borrower does not yet
own the car; the lender owns the car until the borrower has finished paying off the loan.

Each vehicle payment consists of two parts: the principal (the original
amount of the loan) and the interest. Interest on vehicle loans depends primarily on three
main factors: the credit rating of the vehicle buyer, whether the vehicle is new or used, and
the price of the vehicle. As a rule interest rates on new vehicle tend to be lower than interest
rates on used vehicle. Also, as the price of a vehicle goes up, the interest rate will usually go
down. For example, if a consumer wants to purchase a used truck listed for $2,500, the loan
interest rate might be 6.49 percent; if that same consumer wants to purchase a new $40,000
Lexus, the interest rate might only be 5.49 percent.

The bulk of a monthly vehicle payment goes toward the principal, so

that the total amount of the loan decreases steadily with each payment. As a borrower pays
off more of the principal of the loan, he or she moves closer to full ownership of the vehicle.
The amount of money the borrower has paid toward full ownership is known as equity; in
other words with each loan payment the borrower earns additional equity in the vehicle. At
the same time, the value of the car steadily decreases over the course of the loan, meaning
that the vehicle will never be worth the amount of the original loan. For example, say a
borrower takes out a $10,000 loan to pay for a vehicle. At the time of purchase the vehicle is
worth about $10,000 (minus fees and taxes). Four years later, when the borrower has paid off
7
the loan, the vehicle may be worth only $2,000. If the borrower has neglected to take good
care of the vehicle, it might be worth substantially less. This process by which the car loses
its value over time is known as depreciation.

Traditionally vehicle loans were for short periods, generally about 24

months and no longer than 36 months. In the 1980s, however, standard vehicle loan periods
began to get longer. There were two key reasons for this change. For one, in the early 1980s
more and more consumers began to lease their vehicle (they paid a monthly fee in exchange
for the right to drive a particular vehicle) rather than purchase vehicle outright. Vehicle
leases were primarily attractive because they did not require a down payment, and they
tended to require lower monthly payments than traditional vehicle loans. In order to compete
with the vehicle leasing industry, a number of lenders began to offer vehicle loans for longer
terms. As a result, loan periods of 48, 60, and 72 months became standard. In some cases
borrowers were able to receive even longer periods over which to repay their loans. For
example, when a borrower purchases a luxury vehicle (a vehicle, a truck, or another vehicle
that is more expensive than average and generally includes additional features designed to
increase car performance or comfort), he or she will sometimes have as long as 84 months to
repay the loan. In the early twenty-first century a luxury vehicle was generally defined as a
vehicle costing in excess of $30,000. From the early 1990s to the middle of the following
decade, the proportion of Americans who owned luxury vehicle rose from 10 to 30 percent.
This overall rise in the price of motor vehicles was the second significant reason that
standard car loans became longer in duration.

Vehicle Loan-
A motor vehicle installment sales contract assigned to the Borrower that is
secured by title to, security interests in, or liens on a motor vehicle under applicable
provisions of the motor vehicle or other similar law of the jurisdiction in which the motor
vehicle is titled and registered by the purchaser at the time the contract is originated, other
than Vehicle Loans sold to an SPV in connection with a Permitted Securitization
Transaction. Voting Stock. Stock or similar interests, of any class or classes (however
designated), the holders of which are at the time entitled, as such holders, to vote for the
election of a majority of the directors (or persons performing similar functions) of the
corporation, association, trust or other business entity involved, whether or not the right so to
vote exists by reason of the happening of a contingency.

With the income level rising in India, many families have a high disposable
income these days. And with high disposable incomes comes an urge to upgrade your
lifestyle than buying a vehicle? This is especially true since you have so many lenders eager
and willing to extend a loan for your vehicle purchase, making the purchase of your dream
vehicle so easy. 8
 For most of the individual’s vehicle are meant only for those who can
afford it. One chief reason is that individuals do not have the finances required to afford it.
However now there are several loan plans available in the financial market which is meant to
provide adequate finance to the individuals who are looking forward to buy their dream
vehicle. Personal vehicle loan are one such loan plan. With these loan you have the requisite
finance to purchase vehicle of any market or model available in the market today.

In comparison, the only questions asked at PUS banks would be the

amount of loan that you are seeking, the duration, and whether the vehicle is fresh or used.
Questions such as whether the loan seeker has an account with the bank, his salary and
period of employment would, of course, be common to all banks. In case of used vehicles,
the difference between public and private finance would be in the, margin for the loan rather
than the interest rate.

Under these loans you can obtain 70-80% of the total amount required to
finance the vehicle. The amount can be paid back in easy installments over a period of 2.5 to
3 years. Almost 80m percent of the auto sales are financed by loan in India. The car loan rate
today is higher than ever before. The vehicle loan rates are as high as 14-16 percent per
annum and are set to increase further. However, a hard bargaining can cut the interest rates.
Usually, the buyer is routed to the banks through the vehicle dealer (new and old), from
where a purchase is imminent. The dealer even help in cutting down the interest rate for
buyer’s sake. Buyer are not aware that it is not the bank that is actually who contribute to
lower the interest rate on behalf of them. Public sector finance and private finance offer car
loans at varying rates (difference in a few basis points also count).

A Vehicle Loan is a loan that allows you to purchase two and four wheelers
for personal use. Typically, the lender loans the money (making a direct payment to the
dealer on the buyer’s behalf) while the buyer must repay the loan in Equated Monthly
Instalment (EMIs) over a specific tenure at a specific interest rate. The EMI comprises a
portion of the principal amount and the interest component. Once you repay the loan in full,
the lender transfers the vehicle registration in your name.

You can also apply for a Vehicle Loan to buy these vehicles to transport
goods or company personnel. Common examples of commercial vehicles include buses,
trucks, tractors, tippers, cabs, etc.

Your eligibility for a Vehicle Loan depends on your credit score and net (in
hand) monthly income. Most lenders offer 75% to 100% of the vehicle's on-road price, based
on its type and price. You can also get a loan to buy pre-owned vehicle and other previously
used vehicles.
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 Related to Vehicle Loan

1. Eligible Loan: It means a loan offered for sale or substituted by SLM ECFC under a
purchase Agreement which as of the statistical Cutoff Date , in the case of the initial
Loans, or as of the related subsequent Cutoff Date, in the case of any Additional loan or
Substituted Loan, is current or not more past due than permitted of principal or interest
and which meets the following criteria as of the statistical Cutoff Date.

2. Eligible Mortgage Loan: Eligible Mortgage Loan means purchased mortgage loan which
complies with the representations and warranties set forth on schedule 1 to this
repurchase Agreement.

3. Mortgage Loan: An individual Mortgage loan that is the subject of this Agreement, each
mortgage loan subject to this agreement being identified on the mortgage loan schedule,
which mortgage loan includes without limitation the mortgage loan document, the
monthly payments, principal prepayments, Liquidation proceeds, REO Disposition
proceeds and all other rights, benefits, proceeds and obligations arising from or in
connection with such Mortgage Loan.

4. Wet-Ink Mortgage Loan: Wet-Ink Mortgage Loan means a Mortgage Loan which seller
is selling to buyer simultaneously with the origination thereof.

5. Buydown Mortgage Loan: Any Mortgage Loan as to which a specified amount of

interest is paid out of related Buydown Fund is accordance with a related Buydown
Agreement.

6. Balloon Mortgage Loan: A Mortgage Loan that provides for the payment of the
unamortized principal balance of such Mortgage Loan in a single payment at the
maturity of such Mortgage Loan that is the substantially greater than the preceding
monthly payment.

10
7. Purchased Loan: Purchased Loan means a loan repurchased as of the close of business
on the last day of a collection period by a seller pursuant to section 6.2 of the sale
Agreement or repurchased as of such time by the transferor pursuant to section7.2 of the
purchase and sale Agreement.

8. Equipment Loan: Equipment Loan means middle market Equipment Loan that consist
of loan made to obligors in the United States of America primarily secured by new or
used transportation equipment and managed by the Equipment Finance reporting
category of the commercial Lending and Leasing division of GE Capital.

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 Features and Benefits of Vehicle Finance from Manufactures

Availing a vehicle loan from the manufacturer itself brings in a lot of benefits for the buyer.
Following are the features and benefits.

 Streamlined Loan processing - Most vehicle manufacturers have streamlined process

where the loan application and processing are done on a tight timeline. Their
centralized system processes all loan application effectively and enables fast approval.
 Easy Documentation – The documentation for availing vehicle finance is quite simple
and easy. The manufacturer checks repaying ability of the borrower and thus gathers
evidence in the form of document to ascertain your steady income.
 Quantum of Loan – For in-house brands, the manufacturers offer funding up to 100%
of the car value. Customer can also get customized car loan based on their need. Often,
gadgets, insurance and accessories are included as part of the loan value extended.
 Tenure – The repayment period varies from lender. However, it generally ranges
between 1 years to 7 years. The borrower can choose the comfortable term within the
available tenure.
 Prepayment – The borrowers can also prepay the loan when they have enough fund to
close the loan. The term varies from lender to lender. Some car finance companies
allow you pre-close the loan only after completing a specific period. Some lenders do
allow you prepay wherever you can. Change may be applicable for prepaying your
auto loan and varies for different lenders.

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 Eligibility Criteria to Avail a Vehicle loan from Vehicle Finance Companies

Before applying for a vehicle loan with the manufactures, it is important you check the
eligibility criteria in order avoid the rejection. When you meet all the criteria, you may
approach the lender for application. Here is a complied list of eligibility criteria to
avail a vehicle loan.

 You should be a salaried or self-employed individual having a good repaying ability.

 Most vehicle finance companies also provide loan to corporate companies, trusts and
partnership firm for which they to fulfil criteria set by the lender.
 The applicant should fall under the age limit set by the lender, the general range is
usually between 18 years to 65 years.
 All the document required for the loan should be furnished with clear proof.
 The income level varies for salaried or self-employed and companies based on the
loan amount and the vehicle model.
 Should have a decent credit score.

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 Recent Trends

As with a number of other types of loans, vehicle loans have become

increasingly available over the internet since the late 1990s. There are many advantages
involved with shopping for vehicle loans online. For one, shopping for loans online allows
consumers to compare interest rates from a wide range of lenders, in a relatively short
amount of time, therefore giving them a /better chance of securing the best deal. Also,
because online vehicle loan companies require little cost overhead (the expenses involved
with running a business, including renting an office, paying employees, buying office
supplies, and so on), they can often offer consumers lower interest rates than those offered
by traditional banks.

14
 Types of Vehicle Loans in India

Today, you can take on a vehicle loan to buy various vehicle in India. Below are
the most common types offered Vehicle Loan offered by Indian lender.

Car Loans:
You can get a car loan to purchase a brand-new car of your
preferred brand. Lenders generally offer up to 90% financing of the car's on-road price, while
you have to pay the remaining 10% as a down payment. The on-road price of a new car
includes the ex-showroom price, Regional Transport Office (RTO) registration charges,
insurance costs, road tax, etc. A Car Loan generally comes with a seven-year repayment
tenure. You can repay the Car Loans in affordable EMIs over your chosen tenure.

15
HDFC Bank new car loan interest rates start from 9.25% and HDFC Bank used Car loans 13%
this are fixed rate loan and are one of the best car loan in the India.
A car loan is a personal loan that allow the potential buyer to pay the vehicle off in monthly
payments instead of having to pay full price all once. This means that a lending servicer or
bank will pay off the car in full, while in return the borrower pays off the debt in monthly
payment with an interest fee include as well.

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Two-Wheeler Loan: -
A two-wheeler is an excellent wheeler that allow you to navigate traffic,
especially in a densely populated city. It is compact, require less fuel and help you cover
shorter distances comfortably. With two-wheeler loans, you can buy geared motorbikes and
non-geared scooters. Most lender offer up to 100% financing two wheeler loans, with a
maximum repayment tenure of five year. The maximum financing offered on such loans is up
to Rs10 Lakh. Once again, you need to proof and credit score to be considered for this loan.

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Commercial Vehicle Loan: -
A Commercial Vehicle Loan is an ideal solution for anyone who
owns a transport business. We offer new and used commercial vehicles loan at attractive
interest rates, with a flexible repayment tenure. Experience a hassle-free documentation
process, quick processing and swift loan disbursal.
Commercial vehicle Loan let you take a loan on vehicle use for
commercial purpose is especially for self-employed. Interest rate 10% p.a. to 15% p.a.

Organizational Structure of the Commercial bank

Business Head
(National Sales
Manager)

Zonal Sales
Manager

Regional Sales
Manager

Area sales
Manager

Sales Manager

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 COMPANY PROFILE

HDFC bank ltd is a major Indian financial service company based in Mumbai. The bank is a
publicly held banking company engaged in providing a wide range of banking and financial
serv ices including commercial banking and treasury operation. The bank has present has an
enviable network of 2201 branches and 7710 ATM spread in 996 cities across India. They also
has one overseas wholesale banking branch in Bahrain a branch in Hong Kong and has two
representative offices in UAE and Kenya. The bank has two subsidiary companies, namely
HDFC bank securities Ltd and HDB financial service Ltd. The bank has the three primary
business segments, namely banking, wholesale banking and treasury. The retail banking
segment serves retail customer through branch network and other service with of specialist
product group to such customer. The wholesale banking segment provides the loans, non-fund
facilities transactions services to corporate, public-sector units, government bodies, financial
institutions and medium-scale enterprise. The treasury segment includes net interest earing on
investment portfolio of the bank. The Bank’s ATM network can be accessed by all domestic
and international visa/master vehicle, visa electron/maestro, plus/Cirrus and American Express
credit/charge vehicle holder. The bank’s share are listed on the Bombay Stock Exchange
Limited and National Stock Exchange in India Ltd. The bank’s American Depository Share
(ADS) are listed on the New York Stock Exchange (NYSE) and the bank’s Global Depository
Receipts (GDRs) are listed on Luxembourg Stock exchange. HDFC Bank Ltd was
incorporated on August 30,1994 by
Housing Development Financial Corporation Ltd.

19
In the year 1994, Housing Development Financial Corporation Ltd was amongst the first to
receive an in principle approval from the Reserve Bank of India to set up a bank in the private
sector, as part of the RBI’s the liberalization of the Indian banking industry. HDFC bank
commenced operations as a schedule Commercial Bank in January 1995. In the year 1996, the
Bank was appointed as the clearing bank by the NSCCL. In the year 1997, the launched retail
investment advisory services in the year 1998, they launched their first retail lending product,
loan against shares. In the year 1999, the Bank launches online, real-times Net Banking. Times
bank Ltd, owned by Bennett, Colemen & Co. Times Group amalgamated with the bank Ltd.
This was the first merger of the private bank of India. The bank was the first Bank to launch an
International Debit vehicle in association with VISA (visa electron). In year 2001, they started
their credit vehicle business. Also, they become the first private sector bank to be authorized
by the central board of the direct taxes (CBDT) as well as RBI to accept direct taxes. During
the year, the bank made a strategies tie-up with Bangalore-based business solution software
developer, tally solution Pvt, Ltd for developing and offering product and services facilities
online accounting and banking services to SMEs. During the year 2001-02 the bank was listed
on New York Stock Exchange. Also, they made the alliance with LIC for providing online
payment insurance premium to the customer. During the year 2002-03 the bank increased the
number of the branches from 171 No’s to 231 No’s and the size of the bank ATM network
expanded from 479 No’s to 732 No’s. They also expanded their presence in the merchant
acquiring’s business. During the year 2003-04 the bank the distribution network with the
number of the branches increases from 231 No’s to 312 No’s and the size of the bank ATM
network expanded from 732 No’s to 910 No’s. In the September 2003, they entered the
housing loan business through an arrangement with HDFC Ltd, where by they sell HDFC
Home Loan Product. During the year 2004-05 the bank expanded the distribution network with
the number of the branches increases from 312 No’s to 467 No’s and the size of the bank ATM
network increased from 910 No’s to 1147 No’s. During the year 2005-06, the bank launched
the ‘no-frills account’, a basic saving account offering to the customer.

20
Also, the distribution network was expanded with the number of branches increased from 467
No’s (in 211 cities) and the number of the ATMs from 1147 No’s to 1323 No’s. During the
year 2006-07, the distribution network was expanded with the number of the branches
increases from 535 No’s (in 228 cities) to 684 No’s (in 316 cities) and the number of the ATM
from 1323 No’s to 1605 No’s. They commenced direct lending to the self-help group. Also,
they opened a dedicated branch for lending to SHGs, in Thudiyaiur village (Tamil Nadu). In
September 28,2005, the bank increased their stake in HDFC Securities Ltd from 29.5% to
55%. Consequently, HDFC Securities Ltd become a subsidiary of the bank. During the year
2007-08, the bank added 77 No’s new branches take the total to 761 No’s branches. Also 337
No’s new ATMs were added taking the size of the ATM network from 1605 No’s to 1977
No’s. HDB Financial Services Ltd Become a subsidiary company with the effect from August
31,2007. In June 2,2007, the bank opened 19 branches in a day in Delhi and the National
Capital Region (NCR). During the year 2008-09, branches in 528 Indian Cities. The Bank’s
ATM increased from 1,977 to 3,295 during the year. As per the scheme of amalgamation,
centurion Bank of Punjab Ltd was amalgamation with the bank with effect from May 23,2008.
The appointed date for the merger was April 1,2008. In October 2008, the opened their first
overseas commercial branch in Bahrain. The Branch Offers the bank’s suite of banking
services including treasury and trade finance product for corporate clients and wealth
management product for Non-Resident Indians. During the year 2009-10, the bank expanded
their distribution network from 1,412 branches in 528 cities to 1,725 branches in 779 cities.
The bank’s ATMs increased from 3295 No’s to 4232 No’s during the year. During the year
2010-11, the bank expanded their distribution network from 1,725 branches in 779 cities to
1,986 branches in 996 cities. The bank’s ATMs increased from 4,232 No’s to 5,471 No’s.

21
 Bank VISION & MISSION

OUR VISION: -
To be customer driven best managed enterprise that enjoys market leadership
in providing housing related finance.

OUR MISSION:-
Our mission is to be “A world class Indian Bank” bench marking our self against
international standards and best practices in term of product offerings, technology, service
levels risk management and audit and compliance.
To provide a package of attractive financial services for housing purposes through a
competent and motivated team of employees using the state of the art technology to
maintain financial stability and growth of the organization whilst contributing to the
national goal of providing decent housing to all.

The objective is to build sound costumer franchises across distinct business as to be a

preferred provider of the banking services for target retail and wholesale customer
segments, and to a achieve a healthy growth in profitability, consistent with the bank’s
risk appetite. We are committed to do this while ensuring the highest level of the ethical
standards, professional integrity, corporate governance and regulatory compliance.

Product of HDFC Bank:

• Accounts and Deposits

• Loans
• Investment
• Premium banking
• Private banking

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 Steps to gets vehicle loan

Step 1: Short list a vehicle.

Once you have identified the vehicle, you are ready to start the vehicle loan process.
Step 2: Check eligibility
To get started, it is recommended to opt for a vehicle loan of up to six times your
yearly income. However, the eligibility criteria may differ based on city, income, occupation,
etc.
Step 3: Figure out loan amount, tenures and EMI.
How much loan do you need? For how long? what can you afford to pay every month?
One easy wave of finalizing these details is to use HDFC Bank Vehicle Loan EMI Calculator.
You only need to enter your required loan amount and tenure, along with the interest rate
offered by the bank, in the order to calculate your loan EMI. Our bank offers vehicle loan for
tenures ranging from 12-84 months, with EMIs starting as low as Rs 1662 per lakh.
You may also need to make a down payment, which is a certain percentage of the vehicle
value. HDFC Bank offers up to 100% hassle-free finances for your new vehicle which you can
take advantage of.
Step 4: Apply and provide documents.
You can now apply for a loan online or visit the nearest branch to complete in minutes.
Keep documents such as income, ID and address proof ready. Here’s a listed of the document
you would need. Once you provide complete documentation, HDFC Bank approves vehicle
loan in a little as 10b seconds. For existing customer, HDFC Bank offers instant, paperless
Vehicle Loan via Nat Banking.
Step 5: Book your Vehicle.
Once the loan is sanctioned, you can visit the dealer and pay the recommended finance
value of vehicle’s price. The bank will deposit the loan funds the directly into your account.
You an complete your payment and booking. Once this is the done, you can take possession of
the vehicle as soon as it is ready.

23
 REVIEW OF LITERATURE: -

It is a mandatory to scan through the literature which had already gone through the proposed
study subject. Various research work on landing practice of SBI and ICICI bank has been very
helpful in the successful conduct of the study. However, all such study concentrates and certain
issue and suggest piecemeal solution. Therefore, a comprehensive study in elusive the next and
academies literature which help on study in details.

A literature review goes beyond the search of information and include the identification and
articulation of relationship between the and your field of research. While form of the literature
review may vary with different types of studies, the basic purpose remains constant:

• Provide a context for the research.

• Justify the research.

• Ensure the research has not been done before (or that is not the just a
“replication study”).

• Show where the research fits into the existing body of knowledge.

• Illustrate the researcher to learn from previous theory on the subject.

• Highlight flaws in previous research.

• Outline graph in previous research.

• Show that the work is adding to understanding and knowledge of the of the
field.

• Help refine, refocus or even change the topic.

24
 Review of literature: -

Fagerlind and Saha (1989) commented that assumptions of the human capital theory result
into suggestion that cost of education should be borne by the beneficiaries should share the not
solely the state. The justifies the reason why the state and beneficiaries should share the cost
of the higher education through cost share Mora and Vila (2003)supported that, the
government has limited resources given a lots demands from other public sectors apart from
education example health and defense sector .They counite to argue that, beneficiaries should
bear these cost through proper repayment which can be achieved through the reduction of the
default rate among loans beneficiaries by taking care of the characteristics associated with
defaulting among student’s loans beneficiaries.

According `to carnoy (2009) pre-collage characteristics associated with student loans
beneficiaries are important factors on repayment hence affecting default rate.

However calendar (2003) supported that age, gender and attitude

among the beneficiaries should be controlled for maximum repayment and for support of
human capital theory ascertain concerning enhancement of equity within the country .he
continued the argue that availability of fund through repayment will enhance attainment of
higher education of people from law income group society hence reduce inequality within the
country.in this regard Barr and Crawford (2005) states that, by availability of funds through
repayments to supports higher education. Inequalities can be reduce through increased
participations.

According to Eicher and chevaillier (2002) a increased repayment by reduction of default rate
through controlling the characteristics associated with default rate among loans beneficiaries
result into efficiency in provision of student loans hence improvement in human capital
investment, improvement of occupation and income, contribution to the productivity of the
worker as well as reduction of the social inequalities .however human capital theory concept
which advocate that improvement in human investment through education will result will
result into improvement will improvement in occupation and income has been criticized by
psacharopouls and patrinous (2002) who argue that sometimes improvement in education and
income depends much on the other factor such as number as of years in services, which also
true for the cases of Tanzania .Eicher chevaillier (2002 b) supported that, improvement in
human capital through education does not always contribute to the productivity of the workers
25
and the reduction the social inequalities this is because workers productivity can be affected by
other factor apart from improve education, for example job satisfaction, reward structure,
motivation as well as characteristics. They future argued that improvement in educational
investment is assumed to decrees the social inequalities by rising income of people from
different background; this is provide to be not always they cases because under certain
circumstances rising income may lead to inequalities in distribution within society. Therefore,
for economic development of the country, there is need to developed human capital, student’s
loan.

26
 OBJECTIVE OF THE STUDY: -

 To understand the type of loan provided by HDFC bank to its costumer.

 To study about vehicle loan disbursement by HDFC bank.

 To now about the short-term low coast vehicle loan.

 To study loan processing in HDFC bank.

 To study eligibility criteria for getting vehicle loan.

27
 SCOPE OF STUDY

 The study is mainly related to all the vehicle loans provides by HDFC Bank only.

 The study is limited to only HDFCL Bank, this study is mainly related to induvial who
are interested in vehicle loans from bank to fulfil their dreams.

 To study customer issue.

 Will be able to know customer needs.

 To study bank process for getting loan.

28
 NEED OF THE STUDY: -

 TO promote their facilities or extra services provides by HDFC Bank.

 To reduce the documentation while oping A/c or while loan disbursement.

 To study is to help HDFC to know were it lack in loan performances and other facilities.

 Figure on the problem faced by costumer while transaction.

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 LIMITATION

Limitation of the study:

 The study is restricted only to HDFC bank.

 The study is limited to quantitative data.

 Mindset of people may vary depending upon their age, gender, income etc.

 Geeing appointments from the concerns person was very difficult.

30
 RESEARCH METHODOLOGY

Research methodology is collective term for the structure process of

conducting research there are many different methodologies used in various type of research
and the term is usually considered to include research designs, data gathering and data
analysis.
Research methodologies can be quantitative (for example, measuring the
number of times someone does someone under certain condition) or qualitative (for example,
asking a people how they feel about the certain situation). Ideally, comprehensive research
should try to incorporate both qualitative and quantitative methodologies, but this is not always
possible, usually due to time and finical constrains.
Research methodologies are generally used in academic research to test.
Hypotheses or theories. A good design should ensure the research is valid, i.e., it clearly tested
the hypothesis and not extraneous variables, and that the research is reliable, i.e., it yields
consistent results every time.
Part of the research methodology is concerned with how the research
conducted. This is called study design and typically involves research conducting using
questionnaires, interview, observation and experiment. The term research methodology, also
referred to as research methods, usually encompasses the producers followed to analyze and
interpret the data gathered. These often used a range of sophisticated statistical analyses of the
data the identify correlation or statistical significance in the results.
Objective, representative research can be difficult to conduct because can
normally only be conducted on a small sample (e.g., you cannot test a drug on every person in
world, so a sample needs to be used in research). This means that research need to have a very
detailed understanding of the types and limitations of research methodologies which they are
using.
As normal marketing research methodology used which colleting the
data for the study. The data collection in two parts, they are

31
COLLECTION OF DATA

Data were collected through both primary and secondary data

sources. Primary data was collected through questionnaires. The research was done in the from
of direct personal interviews and through telephone interviews.

PRIMARY DATA COLLECTION

A primary data collection afresh and for the first time, and
thus happen to the original in charter. The primary data with the help of questionnaire were
collected from various investors? Primary data are first -hand information and are collected
from various sources like:
 Informal interviews
 Through structure questionaries
 Observation

SECONDARY DATA COLLECTION

The secondary source consists of readily available data

and is already compiled statistical statement and reports. Secondary data are collected from:

 Business magazines
 Internet
 Annual reports
 Journals
 Web sides

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SAMPLING

SAMPLING PROCEDURE

The sample was selected from the visitors / customer of HDFC bank
Nagpur, irrespective of them being investor or not whether they avail the services or not. It was
also collected through formal and informal talks and through filing up the questionnaires
prepared. The data has been analyzed by using mathematical / statical tool.

SAMPLING DESING:-

Data with the help of bar graph, pie chart, line graph, etc.

QUESTIONNAIRES DESING: -

Proper vehicle has been taken to ensure that the information needed
match the objective, which in turn match the data collected through the questionnaire. The
basic vehicle rules of questionnaire design like using simple and clear words, the logical and
sequential arrangement of the question has been taken vehicle of.

33
 HYPOTHESES: -

Null Hypothesis: -
Ho “HDFC Bank is not provide vehicle loan at low interest rate”.

Alternative Hypotheses: -
HI “HDFC Bank provide vehicle loan at low interest rate”.

34
 Data Analysis & Interpretation

In data analysis we will show you some data based on research done by me. After showing the
data we will present it on pie chart, the following data is collected on a random basis,
afterwards analysis is done.

1. What is your occupation?

Factor No of Respondents
Professional 19
Self Employed 15
Salaried 29
Other 9

No of Respondents: -

10%

13%

50%

20%

7%

Professional Self Employed Salaried Other Total

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Interpretation:

Out of 72 people, the 26% customer is itself-employed people, 21%

customer is professional people, 40% customer is salaried i.e. include (government sector as
well as private sector), & 13% customer is other people.

36
2 Have you taken any loan for commercial vehicle? If yes from which bank?

Factor No of Respondents

HDFC 30

ICICI 12

AXIS 8

YES BANNK 6

60

50

40

30

20

10

0 Series1 Series2
HDFC ICICI AXIS YES BANK TOATL

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Interpretation:

Out of 72 people 56 have taken loan of which ,54% customer have taken it from HDFC, 21%
customer is taken from ICICI, 14 % customer from Axis, & 11% from YES Bank. Out of 56
people,54% customer was taken loan from HDFC Bank because they all are agreed from the
service & facility which bank provide to them, & remaining customer was not taken loan from
HDFC bank because they are not happy with the service & facility of bank.

38
3. Are you satisfied with bank policy?

Particulars No of Respondents
Yes 21
No 9

No

Yes

Yes No

Interpretation: -

Out of 30 people who has taken HDFC 70% of people are happy with bank
services and rest 30% are not.

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4. What do you think about process of getting loan approval? Is if easy or not?

Particulars No. of Respondents

Yes 23

No 7

23%

77%

Yes No

Interpretation: -

Out of 30 people who have taken loan from HDFC 77% of people think that the people
approval of loan is easy.

40
5. people want to take loan purchase vehicle?

Particular No. Of Respondents

Yes 53
No 17

No of Respondents:

No of Respondents

Yes No

Interpretation: -

Out of 70 people 76% are interested to take to the purchase vehicle.

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6. How do you come to know about the different loan scheme of this bank?

Response No of Respondents %Age

News paper 25 50%

Television 05 10%

Internet 10 20%

Other sources 10 20%

Total 50 100%

Chart Title

25%
News
50% paper
5% Television
10%
10% Interest

other
souces

42
Interpretation: -

In this pie chart is very much clear that 50% respondent come to know from
newspaper, 10% come to know from television, 20% respondent come to know from interest,
20% respondent come to know from other sources.

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7. The behaviors of employees in the bank instills confidences in you?

Scale Frequency Percentage Cumulative

percentage
Strongly disagree 5 10 10
Disagree 25 50 60
Uncertain 16 32 92
Agree 4 8 100
Total 50 100

5%

25%

50%

16%

4%

Strongly Disagree Disagree Uncertain Agree Total

44
INTERPRETATION

HDFC bank has modern-looking and hi-tech equipment. Here analysis show that most of the
respondents disagreed with this statement. Among the total respondents 50% disagreed, 32%
were neutral and 8% agreed. After analysis I found that majority of the respondents think that
HDFC Bank do not have modern looking equipment or no hi-tech equipment.

45
 Finding

 Out of 72 people 56 have taken loan of which ,54% customer have taken it from HDFC.

 In HDFC bank 77% of people are getting the loan approval.

 Only 76% of people are ready to take loan for purchasing the vehicle.

 30% of people are not happy with the bank service.

46
 Conclusion:-

1. In my study I came to know that many peoples are interested to take a vehicle loan
from HDFC Bank Ltd to buy vehicle.

2. People are confused before taking vehicle loan because of its high interest and EMI's.

3. Even through the interest rates are high peoples are willing to take a loan from HDFC
Bank due to certain reason.

4. The loan sanction process is low when compared to other banks, because of which
people choose HDFC.

5. The disbursement process is very effective as it is on time when compared to other

banks.

6. Financial advisers are the most preferred channel for the investment in home loan.
They can change investor mind from one investment option to others. Only those people invest
directly who know well about Vehicle loan and its operations and those have time.

47
 Recommendations & Suggestions:

In this era of Globalization, it is very difficult to the banks to keep the high rate of interest for
facing the competitor-

 To reduce the interest.

 To launched the new attractive schemes.

 To choose the new methodology for recovering balances.

 To select the sectors in which the large number of funds are invested for long time
period such as home loan.

 To provide more secure policy for the customer.

 To take customers feedback properly because customer is the ultimate

earning source for bank.

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Bibliography & Appendices

 News Paper:

 >Times of India

 Time of Business

 Financial Express

 Websites:

 www.hdfcbank.com

 www.economictimes.com

 www.Loansnews info

49
 Questionnaire:

Please fill the given as per your thinking and experiences with this. I will be thankful to you
for this.

1. What is your occupation?

 Professional

 Self-employed

 Salaried

 others

2. Which income group do you belong?

 Below 2 lacs

 2-5 lacs

 5-10 lacs

 10 lacs above

50
3. Have you ever taken Vehicle Loan?

 YES ()

 NO ()

4. From which do you have taken Vehicle loan?

 HDFC Bank

 ICICI Bank

 Axis

 Yes Bank

5. If you take Vehicle loan from any bank, so do you have any kind of account?

 YES ()

 NO ()

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4. Which type of account do you have?

 Bank AC

 Loan A/C

7. Other While Vehicle loan which is the best facility attract you the most?

 Interest rates

 Service provider

 Payback period

 Schemes

 Less paper work

8. How much loan amount you took?

 Less than 3 lacs

 1lacs

 3-5 lacs

 8 lacs above
52
9. Do you think HDFC Bank try to create new possibility through maintaining good

relationship with the customer?

 YES ( )
 NO ( )

10.What are the external factors that influence about purchasing vehicle?

 Print Media

 Brand Image

 Electronic media.

 Trade shows / Exhibition.

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