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MANAGEMENT THESIS ON ASSESSMENT ON VARIOUS REASONS FOR NON PAYMENT OF LOANS BY CUSTOMERS IN BANK OF BARODA

Submitted by: YOGESH CHANDRA PANT III SEM-MBA 8NBDH201 (2008-2010)

Submitted To:
SUMAN VIJ FACULTY GUIDE INC- DEHRADUN

CERTIFICATE

This is to certify that the project titled Assessment on various

reasons for non payment of loan by Bank of Barodas customers is an academic work done by Yogesh ant submitted in
the partial fulfillment of the re!uirement for the award of the degree of "asters in Business Administration from #$%A# &ational $ollege' ()*+A(,&- under my guidance and direction- To the best of my knowledge and belief the data and information presented by him in the project has not been submitted earlier elsewhere-

"rs .uman /ij #&$ ()*+A(,&

ACKNOWLEDGEMENT

"Gratitude is not a thing of ex ression! it is "ore "atter of fee#ing$" There is always a sense of gratitude which one e0press towards others for their help and supervision in achieving the goals- This formal piece of acknowledgement is an attempt to e0press the feeling of gratitude towards people who helpful me in successfully completing of my training# would like to e0press my deep gratitude to Mrs %u"an &i' my faculty guide for her constant co1operation- .he was always there with her competent guidance and valuable suggestion through out the pursuance of this research project' but not least # would also like to place of appreciation to all the respondents whose responses were of utmost importance for the projectAbove all no words can e0press my feelings to my parents' friends all those persons who supported me during my project- # am also thankful to all the respondents whose cooperation 2 support has helped me a lot in collecting necessary information-

# would also like to thank almighty 3od for his blessings showered on me during the completion of project report-

E(EC)TI&E %)MMAR*

*ome is a dream of a person that shows the !uantity of efforts' sacrifices lu0uries and above all gathering funds little by little to afford ones dream- *ome is one of the things that everyone one wants to own- *ome is a shelter to person where he rests and feels comfortable- "any banks providing home loans whether commercial banks or financial institutions to the people who want to had a home- The housing sector plays an important role in the economic development of the country"y project title is Assessment on reasons for non payments of loans by Bank of Barodas customers- # selected this topic because the non payments of loans by customers has grown by leaps and bound in few years- 4oans disbursements by banks has risen which witnesses phenomenal growth from last 5 years- There are greater number of borrowers of home loans' personal loan education loan and many more- .o by this study we can find out reasons for non payments of loans by customers and what are the problems they faced to get loans M+ o,'e-ti.es of stud+ /ere01 6 To assess the Bank of Baroda customers about their non payments of loans6 To study the satisfaction level of customers about loans-

6 To study the problems faced by customers in obtaining loans%or this # had taken Bank of Baroda In the resear-h "ethodo#og+ # had taken both primary data as well as secondary data ' in the primary data # had make a !uestionnaire to assess the customers about loans and non payments - #n the secondary data # had studied the annual reports of +B#' commercial banks 2 broachers of these banks%or the first objective # had collected the information about the number of account holders of specified banks' no of disbursement of loans and recovery of these loansAfter ana#+sis I -a"e to fo##o/ing findings

Bank of Baroda is having large number of customer base with high loan disbursement and recovery of loans The number of non payments of loan customers is less as with others banks 7.B#' &B' 8B$ and many more9-

In -ase of se-ond o,'e-ti.e i$e$ -usto"er satisfa-tion #e.e# it is found that 8n the basis of data the Bank of Baroda is emerging at higher position a $ompare to other public sector banks on 3round of professionally managed services' reliable 2 transparent .ystem' easy !uery handling etcAnd ro,#e"s fa-e ,+ -usto"ers in o,taining different #oans are

The customer does not have proper knowledge about different loan products so they face problem in making a good deal There are procedural delays' which harass the customers lot this will crush the curtsy of customers to avail the home loan-

The attitude of bank employees some times non cooperative and it creates a hurdle in building trust and $onfidence among customers about banks The banks do not take into account the paying capacity of customers.o some customers are not able to get amount of 4oan needed by them%inally the whole research was carried out in a systematic way to reach at e0act results- The whole research and findings were based on the objectives some of the limitation faced in collecting the data were 4ack of time' lack of data' non1response' reluctant attitude and illiteracy of respondents' which posed problems in carrying out the research-

%o"e of the suggestions are To de-rease the nu",ers of #oan defau#ters2 ,an3 needs to go through e.er+ as e-ts2s-uritni4e the -usto"ers do-u"ents dee #+ and shou#d ha.e its ,a-3ground2 -he-3 his5her #ia,i#it+ -arefu##+

To increase their customers' the banks should provide speciali:ed services in this sector- These services can be such as proper guidance to the $ustomer regarding the processing of loans' especially for the customers who are illiterate To satisfy their customers and for good dealings in future' the banks should make prompt disbursement of loan amount to the customers so that they can buy or construct their dream home as early as possible The Banks should use easy procedure' or say' less lengthy procedure for the sanctioning of loan to the customer- There should

be less number of legal formalities' in case this e0ists' then' these should be completed in less time- This will be helpful in attracting more customers Although the interest rates on specific norms' yet customers seek less interest rate which can lower their cost of house- .o banks should try to lower their interest rates- &eedles to say' that the bank which having lower interest rates' have the ma0imum clients for loans The public sector banks should improve their overall services to increase the number of customers for loans- They should recruit professionals to provide such services and to satisfy the customers-

TABLE OF CONTENTS

Certifi-ate fro" guide66666666666666666666 A-3no/#edge"ent$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Exe-uti.e %u""ar+666666666666666666666$$ Ta,#e -ontent$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Introdu-tion$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 7ro-essing5ser.i-e -harges on #oan$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Introdu-tion to .arious #oans$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ O,'e-ti.e of the stud+$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 7ur ose of the %tud+666666666666666$$$$$$ %-o e of the %tud+6666666666666666$$$$$$
0 RE%EARC8 MET8ODOLOG*666666666$$ ANAL*%I% 9 INTER7RETATION 66666666 FINDING%666666666666666666$ RE&IEW OF LITERAT)RE66666666666 Industr+ rofi#e6666666666666666$$ RECOMMENDATION% AND %)GGE%TION%66$$ ANNE()RE%66666666666666666666666 :I:LIOGRA78* 666666666666666666666$$

INTROD)CTION

/arious types of loans offered by bank of Baroda Bank p !"#$%& '!an (! "a #!)& (#nan*#a' n%%$& +! #n$#"#$)a'& )n$% "a #!)& %+a#' '!an p !$)*+& , A '#&+ !( -a.! %+a#' '!an p !$)*+& #& a& )n$% / H!)&#n0 L!an H!)&#n0 L!an& +! NRI& 1 2I3& H!-% I-p !"%-%n+ L!an A$"an*% A0a#n&+ 2 !p% +4 A$"an*% A0a#n&+ 2 !p% +4 +! NRI E$)*a+#!n L!an Ca L!an T5! 67%%'% L!an C!n&)-% D) a8'%& L!an L!an (! Lap+!p 9 2% &!na' C!-p)+% 2% &!na' L!an Va#87a" Lak&7-# L!an

D%&7 V#$%&7 Ya+ a L!an Ma #a0% L!an A$"an*% A0a#n&+ S%*) #+#%& L!an +! 2%n&#!n% & L!an +! D%(%n*% 2%n&#!n% & 2 !(%&&#!na' L!an L!an +! D!*+! & T a$% & L!an Ba !$a A&7 a4 (R%"% &% M! +0a0% L!an) L!an A0a#n&+ F)+) % R%n+ R%*%#"a8'%& Ba !$a Ca %% D%"%'!p-%n+ T7% '!an& a % n! -a''4 *!n&#$% %$ !n +7% 8a&#& !( #n*!-% an$ %pa4#n0 *apa*#+4 !( +7% p% &!n *!n*% n%$ A p% &!n -)&+ 7a"% a++a#n%$ +7% a0% !( 21 4%a & (! 8%#n0 %'#0#8'% +! a"a#' an4 %+a#' '!an %:*%p+ +7% E$)*a+#!n L!an; %:*%p+ +7% E$)*a+#!n L!an; 8)+ %pa4-%n+ p% #!$ an$ a0% !( +7% 8! !5% n!+ +! %:*%%$ +7% %+# %-%n+ a0% #n *a&% !( &a'a #%$ p% &!n& an$ <= 4%a & #n !+7% *a&%&

Processing / Ser ice c!"rges on Re#"i$ Lo"ns

Pro%&c#

Uni'ie% Processing c!"rges(

Ba !$a H!-% L!an (R%&#$%n+ In$#an&

L!an& )p+! R&, 201- 'a*& / 0,>=?, L!an& a8!"% R&, 201- 'a*& / 0,@0? Ma:#-)- / R&, 1=000

Tak% !"% !( H!-% L!an&

0,10? Ma:#-)- / R&, =0001L!an& )p+! R&, 201- 'a*& / 0,>=?, L!an& a8!"% R&, 201- 'a*&/ 0,@0? Ma:#-)- / R&, 1=0001 0,>=?

Ba !$a H!-% L!an +! NRI& 1 2I3&

Ba !$a H!-% I-p !"%-%n+ L!an

Ba !$a A$$#+#!na' A&&) %$ A$"an*%

)*+,- M".i/&/ 0 Rs* 1,)))/2

Ba !$a A$"an*% A0a#n&+ 2 !p% +4

Lo"n 3one #i/e4 0 1*))Mini/&/ 0 Rs* 1)))/2 Ma:#-)- / R&, 1=0001O er%r"'# 3Fres! s"nc#ion/Rene5"$4 )*+,Mini/&/ 0 Rs* 1)))/2 M".i/&/ 0 Rs* 1,))) L!an (!n% +#-%) / 1,00? M#n#-)- / R&, 10001Ma:#-)- / R&, 1=000

Ba !$a A$"an*% A0a#n&+ 2 !p% +4 +! NRI

Ba !$a A&7 a4 (R%"% &% M! +0a0%)

0,20? Ma:#-)- / R&, 100001- (!n% +#-%) 2? A M#n#-)- / R&, 2=01-

Ba !$a 2% &!na' L!an

Ba !$a Va#87a" Lak&7-# Ba !$a L!an +! D%(%n*% 2%n&#!n% &, Ba !$a L!an +! 2%n&#!n% &

2? A M#n#-)- / R&,2=01R&, 1001- (F#:%$) R&, 1001- (F#:%$)

Ba !$a D%&7 V#$%&7 Ya+ a L!an

2 ? A M#n#-)- / R&, 2=01-

#, Ba !$a T5!-67%%'% L!an, ##, Ba !$a C!n&)-% D) a8'%&, ###,Ba !$a L!an (! Lap+!p& 9 2% &!na' C!-p)+% Ba !$a Sa'a 4 A$"an+a0% Sa"#n0& A**!)n+ E$)*a+#!n L!an 3B"ro%" Sc!o$"r

2? M#n#-)- / R&, 2=01-

0,=0? A M#n#-)- / R&, 1001-

1?; 57#*7 &7a'' 8% %()n$%$; #( app'#*an+ a"a#'& +7% '!an, NIL 0,B=? AMa:#-)- /R&, <0001-

Ba !$a Ca L!an

Ba !$a Ma #a0% L!an

2 !*%&&#n0 *7a 0%&/ 0,2=? A M#n#-)!( R&, 1001D!*)-%n+a+#!n *7a 0%&/ Up +! R&, 2=0001- - NIL A8!"% R&, 2=0001- - R&, 100,

;-; INTROD)CTION TO 8OME LOAN% l

BARODA Home loan


Value propositions

Bank offers following benefits with home loan availed by you:

Free Property and Personal Accident Insurance (available for stipulated tenure of loan). Free Credit Card - "Paras" card ( omplimentary for first year) to all new home loan borrowers with loan limit of !s. "#- $akhs and above %dvance up to &'( of the principal amount of home loan repaid for any re)uirement ('AAA') . %s per current *+ provisions - *nterest on loan upto !s. ,.- $akhs per annum is e.empt from income ta. (/nder section "0#"1(*) of the *ncome +a. %ct).
Conditions

Terms

Income Criteria!

"ont#ly Income /p to !s. "'2'''#-

"odi$ied Criteria 03 times of monthly income 16 times of monthly income -1 times of monthly income

4ore than !s."'2'''#- 5 up to !s. , lac

4ore than !s. , lac

"ar%in!
"ont#ly income /pto !s."''''#Purpose

"ar%in "'( "-( "'( "'( "'( ,-(

Purchase of plot 7ouse#flat already constructed from own resources %ll other cases

%bove !s."'2'''#-

Purchase of plot 7ouse#flat already constructed from own resources %ll other cases

&pecial Home 'oan Pac(a%e : 8n home loans sanctioned on or after ,3.,"."''6 - and up to 0,.,"."''& (shall not apply to swapping of loan2 loans sanctioned on !eimbursement basis and takeover from other banks

7ome $oan upto !s -.'' lac for a ma.imum period of "' 9ears:

4argin - ,'( :o processing charges and pre payment charges # penalty ;ree Personal %ccidental <eath and Property *nsurance over ;ree $ife *nsurance cover e)uivalent to the loan amount

7ome $oans above !s -.'' lac and upto !s "'.'' lac for a ma.imum period of "' 9ears 4argin - ,-(

+here shall be no processing charges and pre payment charges # penalty ;ree Personal %ccidental <eath and Property *nsurance over. ;ree $ife *nsurance cover e)uivalent to the loan amount

%s security against the loan amount2 the bank will take an e)uitable mortgage of the housing property and#or other suitable securities. :o ;ees will be charged on part prepayment # full prepayment of the loan amount from o)n sources. +he loan can be repaid in a ma.imum period of ,- # "- years taken under fi.ed # floating rate option sub=ect to the period up to age of retirement in case of salaried persons and 3- years in case of others. *n case of full prepayment or foreclosure (other than from own sources) fees will be charged at '.-( for each year of the residual period sub=ect to ma.imum of "(.

;le.i rate option is available. +his will facilitate to hedge interest rate risk. '."- bps concession in rate of interest is available to employees of preferred organi>ations and group borrowers (list of preferred organi>ations is available at branch level #i-a,#e to ho"e #oans 01

;i.< Charges a

The different kinds of charges applicable to home loans are discussed below0

a< 7ro-essing fees 01

%irst of all' comes the process fee- This is a charge that is levied by most bank- This has to be paid at the time of submission of the application form- #t<s normally charged as a percentage of the loan amount sanctioned.ome bank also charge a flat fee based on the loan amount instead of a percentage- =hen a lower amount is sanctioned the e0cess fees paid at the time of submission of the application is adjusted with the charges' which one make to the bank subse!uently- "ost bank refund the processing fee if the loan application is rejected,< Ad"inistrati.e fees 01

This charge is again' normally' a percentage of the loan amount sanctioned- #t is collected by the bank for the maintenance of customer<s records' issuing interest certificates' legal charges' technical charges' etcthough the tenure of the loan- #t is payable by the customer when he>she accepts the offer letter given by the bank- This payment has to be made before the availment of the disbursement- The mode of collection of these fees varies from one bankto another-

-< Rate of interest 01

This is the rate of interest applicable on the loan amount through the tenure of the loan- #t is charged on the principal monthly reducing method"ost bank mainly give an option to select either a fi0ed rate of interest or a variable rate of interest-

d< Lega# Charges01

.ome ublic .ector Banks levy legal charges that they incur on getting the property documents vetted by their panel of lawyers-

e< 7roof of e" #o+"ent 0 1 #dentify card issued by the employer1 /isiting card-

;f< E" #o+er=s detai#s ;In -ase of ri.ate #i"ited -o" anies< 0 1

rofile of employer on employers letterhead 7to be signed by a senior person in the organi:ation9 comprising

> &ame of promoter>directors

> Background of promoters>directors

> &ature of business activity of your employer

> &umber of employees

> 4ist of branches>factories

> 4ist of suppliers

> 4ist of clients>customers

> Turnover of employer

> Annual reports of the employer for the last two to three years-

;g< 7roof of age ;An+one of the fo##o/ing< 0 1

assport1 /oter<s #( card1 A& card1+ation card1)mployer<s identity card1.chool leaving certificate1Birth certificate-

;h< 7roof of residen-e ;An+one of the fo##o/ing< 0 1

+ation card1 assport1 A& card1+ent agreement' if the customer is staying currently on rent1 Bank ass book1Allotment letter from the company if he>she is residing in company !uarters;i< 7roof of na"e -hange ;If a #i-a,#e< 0 1

A copy of the official ga:ette ?A copy of a newspaper advertisement publici:ing the name change1"arriage certificates;g< 7roof if in.est"ent ;If re?uired< 01

Bank statement for the last si0 months of all operating and salary accounts 1 Bank statements for the last si0 months of all current accounts' if self1employed1any other photocopies of investments held' if re!uired by the *%$-

Baroda Home Impro*ement 'oan Terms

Conditions

+he house should not be older than 0- years. !esidual life of the house may be minimum repayment period plus - years to be certified by approved architect # valuer vis-a-vis total repayment period of the loan. +li%i,ilty!
o

%ll individuals (resident *ndians) singly or =ointly owing a

dwelling unit in their name#(s).


o

%ge:

4inimum age ", years. 4a.imum %ge of the borrower plus repayment period should not be beyond retirement age2 in case of salaried persons and 3- years in case of others.

Principal applicant must have consistent and stable source of income minimum for last three years.

Income Criteria! +he ma.imum amount of loan will not e.ceed the following:

o o

?alaried person - " times of gross annaul income. 8ther than salaried persons i.e. professionals # selfemployed # business persons etc.2 0 times of net (average of last three years) annual income plus depreciation claimed individual capacity (and not the depreciation claimed by the business unit).

"ar%in! "-( of the Pro=ect cost (Pro=ect cost will include - estimated cost of repairing#renovation#e.tension2 cost of furniture#fi.tures#furnishing other gadgets and also the stamp duty payable for criteria of e)uitable mortgage). &ecurities!

4ortgage of the property to be repaired # renovated.

Repayment Period! o 4a.imum-,'-years by @)uated 4onthly installments


o

4oratorium period ma.imum-3-months or one month after completion of repair#renovation work which ever is earlier.

&er*ice C#ar%es $or Full Prepayment-Premature Closure! o ,( on amount prepaid including any such amount prepaid in the last financial year.
o

:o penalty on part pre-payment.

Baroda Ad*ance a%ainst Property


Ban( o$ Baroda brings to you an innovative combination of a loan and over draft facility with fle.ible repayment options against the security of your immovable property. .ey Bene$its

Ideal use o$ idle property - Aenerate additional income from an otherwise idle property. Bithdraw money as per your need and save on interest cost. <eposit surplus money # regular income # salary and save interest. ;le.ibility to withdraw money deposited earlier. an be availed either as overdraft or demand loan as per your need.

&alient Features

'imit! 4inimum : !s. , lac

"a/imum areas
o o

!ural areas: !s. - $acs 8ther areas: !s. ,'' $acs

Repayment
o

$oan: 4a.imum 61 @4*s

@asy <ocumentation 4ortgage loan from other banks can be taken over Conditions

Terms

+li%i,ility! ?alaried @mployees # Professional2 ?elf @mployed 5 8ther income ta. assesses for last 0 years with a minimum gross annual income of !s. 3''''. A%e! 4inimum ", years Income Criteria!

?alaried: 03 times of net monthly income 8thers: 0.- times of net annual income (average of last 0 years)

Documents Re0uired!

?alaried
o

*ncome proof (;orm ,3 along with salary certificate from the employer)

Professional # ?elf-employed

o o

*.+. returns for past 0 years $atest income ta. assessment order (for overdraft amount of over !s. - $acs) *ncome certificate from appropriate revenue authority like +ehsilldar#B<8#?<8 (for agriculturist) 8riginal title deeds of the property offered for mortgage Paid receipt of latest maintenance2 water ta.2 municipal ta. and any such ta.es. :on encumbrance letter from co-op society Permission to create @)uitable 4ortgage from society $ast 3 months bank statements of main bank account

o o

o o o

Baroda +ducation 'oan


@ducation is the most important investment one makes in life. 7igher studies and speciali>ation in certain fields call for additional financial support from time to time. Bhether you are planning school education (nursery to standard C**) of your child2 pursuing a graduate or post-graduate degree2 the Ban( o$ Baroda +ducation 'oans2 can help finance your ambitions and goals.

;ollowing are the loan options available:


Baroda Vidya Baroda 1yan Baroda &c#olar

Baroda Vidya
Ban( o$ Baroda presents a one of its kind finance option for parents of students pursuing school education. +hese loans are available for studies from :ursery to ?enior ?econdary ?chool.

:o processing 5 documentation charges. :o 4argin. :o security re)uired. Conditions

Terms
+li%i,ility!

?hould be an *ndian national residing in *ndia. ?tudent should have secured admission to a recogni>ed school # 7igh school # Dr. ollege (including B?@ # * ?@ # ?tate Board) for any of the following courses ,. ?tage * : :ursery to E th ?+<. ". ?tage ** : E* th to E*** ?+<. 0. ?tage *** : *C th to C** th ?+<.

Co*era%e o$ e/penses $or !

;ee payable to college # school. @.amination # $ibrary # $aboratory ;ee.

;ee and other charges payable to hostel. Purchase of books # e)uipments # instruments # uniforms. Personal omputers # $aptops wherever re)uired. aution deposit # building fund # refundable deposit supported by instituion bills # receipts.

"a/imum 'oan Amount ! !s.1.'' $acs Repayment Period !

$oan for each yearly sub limit is repayable in ," e)ual monthly instalments. ;irst installment to be due ," months after first disbursement of each yearFs loan component.

+he parents must ,e residin% in the place for a minimum period of -0years2 e.cept in the case of transferable =ob. &ecurity !

*n case the loan is given for purchase of computer the same is to be hypothecated to the bank.

Rate o$ Interest !

,( concession in rate of interest to loans for girl students. *nterest to be serviced as and when applied during moratorium period. Penal *nterest G "( on overdue amount if the loan amount e.ceeds !s. "#- lacs.

Baroda 1yan
% loan product specially designed for students pursuing Araduation2 Post Araduation2 Professional 5 8ther courses in *ndia. Ban( o$ Baroda

e.tends a helping hand to energi>e your studies and promote education of the youth.

:o processing charges. :o 4argin on loans upto 1 lacs. ;ree <ebit ard.

Terms

Conditions

Courses +li%i,le !

%ll Araduation courses. %ll Post Araduation courses 5 <octorate courses. Professional ourses vi>. @ngineering2 4edical2 %griculture2 Eeterinary2 $aw2 <ental2 4anagement2 omputer2 %yurved2 7omeopathy2 Physiotherapy2 7otel 4anagement2 7ospital 4anagement2 *nterior <esigning2 %rchitecture2 @vent 4anagement2 4ass ommunication2 ;ashion +echnology2 etc. omputer certificate courses of reputed institutes accredited to <ept. of @lectronics or institutes affiliated to /niversities. ourses like .%2 * B%2 ;%2 ?2 etc.

ourses conducted by **42 **+2 **?c2 C$!*. :*;+ etc. !egular <egree# <iploma courses like %eronautical2 pilot training2 shipping etc.2 approved by <irector Aeneral of ivil %viation#shipping. 8ther courses leading to diploma # degree etc. conducted by colleges#universities approved by /A #Aovt.# %* +@# %*B4?# * 4! etc. ourses offered in *ndia by reputed foreign /niversities. @vening courses of institutes approved by ?tate# entral#Aovt.#/A #%* +@#%*B4?#* 4!#* %!.

ourses offered by :ational *nstitutes and other reputed private institutions. +he ollege#*nstitute must have been approved by the ?tate# entral Aovt.#/A #%* +@2etc.

&tudent +li%i,lity !

?hould be !esident *ndian. ?ecured admission to either of above courses

Co*era%e o$ e/penses !

;ee payable to college # *nstitution # /niversity. @.amination # $ibrary # $aboratory ;ee. ;ee and other charges payable to hostel. Purchase of books # e)uipments # instruments. Personal omputers # $aptops wherever re)uired. aution deposit # building fund # refundable deposit supported by institution bills # receipts. %ny other e.penses re)uired to complete the course - like study tours2 pro=ect works2 thesis2 etc.

"a/imum 'oan Amount ! !s.,'.'' $acs. "ar%in ! /pto !s. 1.'' lacs :- :*$ %bove !s. 1.'' lacs :- -(

4argin is to be contributed on pro rata basis on year to year basis as and when disbursements are availed.

Repayment Holiday - "oratorium Period !

ourse period H , year or 3 months after getting =ob2 whichever is earlier.

Repayment Period !

+he loan is repaya,le in 234 years a$ter t#e a,o*e period .

&ecurity !

/pto !s.1 lacs : :o security %bove !s. 1.'' $acs and up to !s. I.- lacs: ollateral in the form of a suitable third party guarantee alognwith assignment of future income. %bove !s.I.- lacs: +angible collateral security e)ual to ,''( of the loan amount along with assignment of future income

Rate o$ Interest !

?imple interest to be charged at monthly rests during the repayment holiday # moratorium period. ,( interest concession is provided if interest debited during repayment holiday is serviced. ,( oncession in rate of interest to loans for girl student. Penal interest G "( p.a. on overdue amount2 if the loan amount e.ceeds !s.1.'' lacs.

Baroda &c#olar Ban( o$ Baroda presents financial assistance to students going abroad for Professional # +echnical studies. +he loan offering is designed to empower you with the financial capability to realise your dreams... %chieve your goals... !each out to the ma.imum limits...

Terms

Conditions

+li%i,ility o$ Courses! Araduate#Post Araduate # <octorate # Dob 8riented Professional # +echnical ourses offered by reputed /niversities overseas. !egular <egree# <iploma courses like %eronautical2 pilot training2 shipping etc. +he *nstitute should be recogni>ed by the competent local aviation # shipping authority and <irector Aeneral of ivil %viation#shipping in *ndia. &tudent +li%i,lity !

?hould be an *ndian :ational. ?ecured admission to Professional#+echnical ourses at foreign /niversities#*nstitutions.

Co*era%e o$ e/penses ($or o*erseas studies) !


%dmission#+uition fees to ollege#/niversity. 7ostel#4ess charges. @.amination#$ibrary#$aboratory fee. Purchase of books#e)uipments#instruments. aution deposit#building fund#refundable deposit supported by institution bills#receipts. 8ne way travel e.penses#Passage money. Purchase of computers if essential for completion of the course. %ny other e.pense re)uired to complete the course e.g. study tour2 pro=ect work2 thesis etc.

"a/imum amount o$ loan! Rs5 67577 'acs5 "ar%in ! ,-(

Repayment Period ! Repayment Holiday-"oratorium Period !

ourse period H , year or 3 months after getting =ob2 whichever is earlier. T#e loan is repaya,le in 234 years a$ter t#e a,o*e period5

&ecurity !

/p to !s.1.''#- lacs : :o security %bove !s. 1.'' $acs and up to !s. I.- lacs: ollateral in the form of a suitable third party guarantee alognwith assignment of future income. %bove !s.I.- lacs: +angible collateral security e)ual to ,''( of the loan amount along with assignment of future income

Rate o$ Interest !

?imple interest during repayment holiday#moratorium period. ,( interest concession2 if interest debited during the repayment holiday is serviced. ,( oncession in rate of interest to loans for girl student. Penal interest G "( p.a. on overdue amount if loan e.ceeds !s.1#- lacs

8 Baroda Career De*elopments


Aainfully employed persons intend to pursue higher education2 vocational courses2 trainings2 pilot trainings2 skill up gradation2 diploma or degree

courses offered in aviation2 hospitality and travel management2 e.ecutive development etc. in *ndia # abroad. +o help the future management leaders ac)uire higher speciali>ed managerial skills and dominate the global arena2 Ban( o$ Baroda brings to you Baroda areer <evelopment2 a uni)ue loan facility for working persons. Terms Conditions

+li%i,ility o$ Courses!

Araduate2 Post Araduate2 <iploma2 Professional ourses2 ?peciali>ation courses offered by reputed /niversities# *nstitutions (*ndian or 8verseas)2 having assured employment prospects2 ?kill up gradation courses offered by various institutes (*ndian#8verseas)2 having assured employment prospects2 ourses offered by 7ospitality 4anagement *nstitutes for ?kill upgrade#?hort course# +raining etc. Pilot +raining ourses2 offered by reputed *nstitutions (*ndian or 8verseas)2 approved by <irector Aeneral of ivil %viation (<A %) #*nternational ivil %viation 8rgani>ation (* %8).

&tudent +li%i,lity !

?hould be an *ndian :ational. 7ave secured admission to the course through entrance test # merit based selection process.

"a/imum 9uantum o$ 'oan !

:eed based finance sub=ect to repaying capacity of applicant2 based on present # e.pected income after completion of the course. *n *ndia: !s. ,'.'' $acs.

%broad : !s. "' $acs.

Co*era%e o$ e/penses !

+uition ;ees2 @.amination# $ibrary fee etc. charged by the *nstitution. 7ostel fees. ost of Books2 e)uipments2 instruments2 etc. Personal omputers# $aptops2 wherever re)uired. %ny other e.penses re)uired to complete the ourse vi>: ?tudy +ours2 Pro=ect works2 thesis2 etc.

"ar%in ! ,-( (%ny scholarship # assistantship2 if received2 would not be included in margin). Repayment Period!

4a.imum 3' @4*s.

Repayment Holiday!

ourse period H 3 months or 0 months after getting a =ob2 whichever is earlier.

&ecurity!

,''( tangible collateral security by way of mortgage of property or assignment of securities :? 2 JEP2 $* policy2 ;<! etc. Personal guarantee of ;ather # mother of the applicant or any other person having sufficient worth.

In +!$a4C& (a&+ pa*%$ 5! '$; a "%7#*'% #& 8)+ a n%*%&&#+4, Y%+ !+7% %:p%n&%& an$ p'an& #n '#(% +ak% p #! #+4 an$ +7% $ %a- !( !5n#n0 a *a +ak%& a 8a*k &%a+, 67%+7% a& a *!-(! +a8'% an$ $%p%n$a8'% -%an& !( + an&p! + ! a& a &+a+)& &4-8!' #n &!*#%+4; 5% 8%'#%"% 4!) $%&% "% !5n% &7#p !( a "%7#*'%, T7% C"r Lo"ns ( !- B"n6 o' B"ro%" a % $%&#0n%$ +! (#nan*% +7% *a +7a+ &)#+& 4!) n%%$ an$ -a+*7%& +! 4!) &+a+)& 9 +a&+%, B"n6 o' B"ro%" a'&! p %&%n+& a )n#D)% a$$ !n (a*#'#+4 (! #n&+a''a+#!n !( CNG / LPG g"s26i# #n n%51!'$ (n!+ -! % +7an > 4%a &) (!) 57%%'% , S" e /one7* S" e e"r#!* C!n"% + +! a'+% na+#"% ()%' +!$a4 an$ 8ank !n )& (! 4!) (#nan*#a' %D)# %-%n+&, .ey Bene$its

L!an& a"a#'a8'% )p +! R& 1= La*& (! an4 *a -ak%1-!$%' (In*')&#"% !( Ga&E#+), L!an& *an 8% a"a#'%$ (! n%5 an$ &%*!n$-7an$ "%7#*'%& (N!+ -! % +7an > 4%a & !'$), R%pa4-%n+ p% #!$ a& '!n0 a& B 4%a &, L!5 #n+% %&+ a+%&,

% wedding in the family. 4aybe itFs high time you surprised your spouse with a priceless gift. 8r you simply need to pamper your family with an

e.tended vacation. +hese are the times when you may need a helping hand. +hatFs when you can bank on us. Bank of BarodaFs Personal $oan offers financial help to meet your personal re)uirements. .ey Bene$its

7elps you take care of all kinds of e.penses at a short notice. +he $oan may be availed to meet e.penses related to marriage2 travel2 honeymoon2 holiday and medical e.penditure or for any other personal use. +he loan is also available to Pensioners#<efence Pensioners $oan is also available for @arnest 4oney <eposits for buyers of home#flat#plot

C8A7TER1@

C8A7TER1@

O:AECTI&E% OF %T)D*

The numbers of loans defaulters have been increased rapidly- *ence banks are facing huge problems The main objectives of the study are as follows @1

B< The main objective of this study is to know the reasons for non payments of loans by banks customers @< To analy:e the history of Bank of BarodaATo know the ideas of customers about bank loan products and services-C< %i0ing the appointments with the customersD< To study the satisfaction level of customers about various loans

E< To study the problems faced by customers in obtaining the home loansBF< To learn about various aspect of bank of Baroda loan ltd-

@$B 7)R7O%E OF T8E %T)D*

The main purpose of this study is to attain the knowledge of the processing system of loans- *ow bank deals with such customers and it overcomes from losses the main purpose of the study is as follows@1

To know about why customers dont pay loan-

To study the satisfaction level of customers about loans-

To study the problems faced by customers in obtaining loans-

To learn about various aspect bank of Baroda loan

@$@ %CO7E OF %T)D*

The #ndian customers demand has grown by leaps and bound in few years&ow they are aspiring good house' education car and many more-*encetotal loans disbursements by banks has risen which witnesses phenomenal growth from last 5 years- There is greater number of borrowers of loans- .o by this study we can find out satisfaction level of customers and problems faced by them in obtaining loans- 4oan has given a boost to our banking sectorB however bank has suffered loss from it as wel

RE%EARC8 MET8ODOLOG*01

+esearch methodology is a way to systematically show the research problem- #t may be understood as a science of studying how research is done scientifically- #t is necessary for the researcher to know not only the research methods but also the methodologyThis .ection includes the methodology which includes- The research design' objectives of study' scope of study along with research methodology and limitations of study etc

To know the what are the reasons from customers side for not payments of loan To study the satisfaction level of customers bank loansTo study the problems faced by customers in obtaining loansTo make comparative study of loan defaulters of other banks

G$B1 RE%EARC8 DE%IGN01

This project is based on e0ploratory study as well descriptive study- #t was an e0ploratory study when the customer satisfaction level was studied to suggest new methods to improve the services of Bank of Baroda in providing loans and it was descriptive study when detailed study was made for comparison defaulters of loan of some other banks -

G$@ H %O)RCE% OF DATA 01

To fulfill the information need of the study- The data is collected from primary as well as secondary sources1

A 1 7RIMAR* %O)RCE01

# decided primary data collection method because our study nature does not permit to apply observational method#n survey approach we had selected a !uestionnaire method for taking a customer view because it is feasible from the point of view of our subject 2 survey purpose'i conducted 5CC sample of survey in my project to judge the satisfaction level of customers which took loans-

6 %a" #e si4e!1 %or the !uestionnaire # have taken the sample si:e of5CC customers of Bank of Baroda

: H %ECONDAR* %O)RCE01

I+ 5a& *!''%*+%$ ( !- #n+% na' &!) *%&, T7% &%*!n$a 4 $a+a 5a& *!''%*+%$ !n +7% 8a&#& !( ! 0an#Fa+#!na' (#'%; !((#*#a' %*! $&; n%5& pap% &; -a0aF#n%&; -ana0%-%n+ 8!!k&; p %&% "%$ #n(! -a+#!n #n +7% *!-pan4G& $a+a8a&% an$ 5%8&#+% !( +7% *!-pan4,
G$G1 %AM7LING 01

.ampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe- A sample is a representative of the universe selected for study-

%AM7LE %IIE 01

4arge sample gives reliable result than small sample- *owever' it is not feasible to target entire population or even a substantial portion to achieve

a reliable result- .o' in this aspect selecting the sample to study is known as sample si:e- *ence' for my project my sample si:e was DCCThe .ample .i:e consists of both the rofessional and Business class people- #T peoples' (octors' Eewelers' Timber "erchants 2 +eal estate Agents are taken as .ample-

%AM7LING TEC8NIJ)E01

+andom sampling techni!ue was used in the survey conductedthat # took DCC customers

%or

MET8ODOLOG*
To verify this research # used F test-sampal si:e was DCC respondents ,
T7% (! -)'a (! +7% H-+%&+ #&

67% %

#& +7% &a-p'% -%an)

#& +7% &a-p'#n0 $#&+ #8)+#!n !( +7% -%an

8+ othesi4e

H0 there is loan defaulters H1 : there are loan defaulters


At5G .ignificance level +esult@1

# found that there is no loan default case from customers


:ANK OF :ARODA

Years

&o- loan account holders

loan (isbursed 7in crores +s-9 (istributed I-D; +ecovered 5-DJ Balance C-LH

DCCH1C5

;CI

DCC51CI

;AC

;;-55

;C-;I

;-AK

DCCI1CJ

;5H

;J-CI

;H-A5

D-JC

DCCJ1CK

;KC

DC-CL

;K-IK

;-H;

DCCK1CL

DIC

DH-;C

DA-L;

C-HK

Inter retation01

Bank of Baroda' has also upgraded its position in banking sector in ()*+A(,&- The figures shown in table reveals that there is upward shift in customer base of Bank from ;CI customers to DIC customers- The bank has also increased its share in loan distributing +s- DH-;C crores in DCCK1 CL- The recovery procedure of *ome loan is very soundANAL*%I% 9 INTER7RETATION

The analysis is based on the responses given by customers through !uestionnaires-

Reasons for not gi.ing #oan ,u+ -usto"ers @

ersonal problem@1 55G .udden death@ 1 Banks role@ 1 8thers@ 1 A5G ;5G ;DG

Ana#+sis0 fro" a,o.e data it -a"e to 3no/2 a#though -usto"ers gi.e #oans +et so"eti"es the+ donKt$ Therefore I found out that ersona# ro,#e" ;LLM< for-ed the" to do that

AGE GRO)7 OF %)R&E*ED RE%7ONDENT%

TA:LE N$B0

Age grou BE 1 @L +ears @C 1 GL +ears GC 1 ON +ears LF 1 CF +ears More than CF +ears

No$ of Res ondents B@D CD OC @O C

C8ART1N$B0

Ana#+sis01

Fro" the -hart a,o.e /e find that ODM of the res ondents fa## in the age grou of BE H @L +ears2 @LM fa## in the age grou of @C H GL +ears and BDM fa## in the age grou of GC H ON +ears$

Therefore "ost of the res ondents are re#ati.e#+ +oung ;,e#o/ @C +ears of age<$ and CM res ondentKs age are LF1CF +ears and @M res ondentKs age are CF to a,o.e +ears$

GENDER CLA%%IFICATION OF %)R&E*ED RE%7ONDENT%

TA:LE1N$@ %r$ No$ Categor+ No$ of Res ondents ; D "arried ,nmarried Total ;HC IC DCC JCG ACG ;CCG Base DCC respondents
C8ART1N$@

7er-entage

Inter retation

Fro" the ta,#e and gra h a,o.e it -an ,e seen that DFM res ondentKs are "arried$ GFM res ondentKs are un"arried$

Edu-ationa# ?ua#ifi-ation of res ondentKs

TA:LE1N$G %r$ No$ Categor+ No$ of Res ondents ; D A ,nder graduate 3raduate ost graduate Total 5C KC JC DCC D5G HCG A5G ;CCG Base DCC respondents 7er-entage

C8ART1N$G

Inter retation Fro" the ta,#e and gra h a,o.e it -an ,e seen that @LM res ondentKs are under graduate$ OFM res ondentKs are Graduate$ GLM res ondents are 7ost graduate$ Nu",er Of +earKs Are *ou in DehradunP

TA:LE1N$O %r$ No$ Categor+ No$ of Res ondents ; 4ess than five years D "ore than five years Total DCC ;CCG Base DCC respondents
Inter retation

7er-entage

JK

ALG

;DD

I;G

Fro" the ta,#e and gra h a,o.e it -an ,e seen that GNM res ondentKs are in Dehradun is #ess than fi.e +earKs$ CBM res ondentKs are in Dehradun is "ore than fi.e +earKs$

C)%TOMER 7ROFILE OF %)R&E*ED RE%7ONDENT%

TA:LE N$L0 Custo"er rofi#e %tudent 8ouse/ife Wor3ing 7rofessiona# :usiness %e#f E" #o+ed Go.ern"ent ser.i-e e" #o+ee No$ of res ondents D L BBC ON @O @O

;;:

student ;;: <: 6: #ouse)i$e )or(in% pro$essional ,usiness

66:

2;:

sel$3empoyed %o*ernment ser*ice

Inter retation Fro" the ta,#e and gra h a,o.e it -an ,e seen that01 LBM of the res ondents are /or3ing rofessiona#s2 @@M are into ,usiness and BBM are se#f1e" #o+ed2 BBM of the res ondentKs are go.ern"ent ser.i-e e" #o+ee and GM of the res ondents are student and @M of the res ondents are house1/ifeANN)AL 8O)%E 8OLD INCOMEP

TA:LE1N$C %r$ No$ Categor+ No$ of Res ondents ; D 4ess than D lacs Between D to 5 lacs A Between 5to Klacs H "ore than K lacs Total ;C DCC 5G ;CCG Base DCC respondents AC ;5G LK ID HLG A;G 7er-entage

Inter retation

Fro" the ta,#e and gra h a,o.e it -an ,e seen that ONM res ondentKs annua# househo#d in-o"e is #ess than @ #a-s$ GBM res ondentKs annua# househo#d in-o"e is ,et/een @ to L #a-s$

BLM res ondentKs annua# househo#d in-o"e is ,et/een L to E #a-s$ LM res ondentKs annua# househo#d in-o"e is "ore than E #a-s$ Do +ou 3no/ a,out :ANK OF :ARODAP

TA:LE N$D0

Categor+ Yes &o

No$ of Res ondents ;IH ;I

Inter retation01 %rom the table and graph above it can be seen that NBM res ondentKs are 3no/n a,out :ANK OF :ARODA NM res ondentKs are not 3no/n a,out :ANK OF :ARODA

Ta,#e N $E01

Reasons for getting the #oans

%r$No$ a-

Nu",er of Reasons &on1availability of funds

7er-entage AI

bcd-

+eluctancy to pay cash in one go Ta0 benefit Any other

A5 DH 5

GRA7801 N$E

percenta%e o$ customers

87 <2 <7 62 67 ;2 ;7 2 7

non3 reluctancy a*aila,ility o$ $unds

ta/ ,ene$it

any ot#er

Inter retation @1

To inter ret the res onse of the ?uestions2 the figures sho/s that "ost of the -usto"ers find the ro,#e" in a.ai#a,i#it+ of funds i$e$ GCM and .er+ #ess nu",er of -usto"ers found ro,#e" in a+ing -ash in one go is GLM2 -usto"ers get housing #oan for tax ,enefits is @OM$ This /as the ex e-ted res onse ,e-ause a #arge nu",er of eo #e find a ro,#e" of a.ai#a,i#it+ of funds /hi-h /or3s as an o,sta-#e in o/ning a drea" ho"e$

Ta,#e1N$BF
%our-es of infor"ation a,out #oans

%our-es of infor"ation

7er-entage of -usto"ers

&ewspapers "aga:ines Banners>*oardings> amphlets =ord of mouth Any other source

HL ;I ;; DC CH

67: ;;:

8: 8=: ;>:

ne)spaper ma%a?ines ,anners )ord o$ mout# any ot#er source

Inter retation@1

The data sho/s that around @FM of -usto"ers got infor"ation fro" sour-e of =Word of Mouth= /hi-h in-#udes infor"ation fro" friends2 re#ati.es2 -o##eagues et-$ ONM of -usto"ers got infor"ation fro" ne/s a ers2 on#+ BCM of -usto"ers fro" "aga4ines and OM of -usto"ers got infor"ation a,out ho"e #oans s-he"es under =An+ other sour-e= and BBM through :anners5 8oardings57a" h#ets $

Ta,#e1N$BB

O inion a,out the ser.i-es of :ANK OF :ARODA

%er.i-es of :ANK OF :ARODA

7er-entage of -usto"ers agreeing %trong#+ agree Agree Neutra# Disagre %trong# e + disagr ee

a- rofessionally managed b- +eliable 2 transparent c- .ocially responsible

KIG

;CG

HG

IJG

AAG

J5G

;CG

;5G

HG

d- $ustomer care

DCG

IKG

KG

e- Muery handling

DCG

JIG

HG

GRA781N$BB

O inion of -usto"ers a,out :ANK OF :ARODA

=7 @7 47 >7 percenta%e o$ customers 27 87 <7 67 ;7 7 stron%ly a%ree a%ree neutral disa%ree stron%ly disa%ree

c
$actor

Inter retation01

$ustomers from :ANK OF :ARODA are !uite satisfied from their services like !uery handling and customers social responsibility of banks towards customers and professionally managed services- They don<t give so good response to reliability and transparency services of banks- .o' customer<s satisfaction level toward :ANK OF :ARODA services is lightly satisfied-

Ta,#e1N$B@

O inion of -usto"ers a,out #oan s-he"es

:ANK OF :ARODA

%er.i-es of :ANK OF :ARODA a- Amount of loan b- 4egal formalities c- #nterest rates d- +epayment options e- .ecurity demanded f- #nstallments g- .ervices h- rocessing for sanction of loan

7er-entage of -usto"ers agreeing %trong#+ agree ICG HDG ADG DIG DCG 55G H5G 55G A5G H5G 5IG IHG ADG HCG ACG DHG 5G ;HG ;DG ;CG HKG 5G ;KG ;KG Agree Neutra# Disagr ee 1 1 1 1 1 1 IG AG %trong#+ disagree 1 1 1 1 1 1 ;G 1

GRA7801 N$B@

7er-entage of satisfa-tion #e.e# of -usto"ers of :ANK OF :ARODA

47 >7 27
percenta%e o$ customers

87 <7 67 ;7 7

stron%ly a%ree a%ree neutral dis%ree stron%ly disa%ree

% #

$actors

Inter retation01

The analysis shows that the customers of :ANK OF :ARODA gave IC percent of amount of loan and legal proceedings' 5IG to interest rates' H5G to proceedings and services' 55G to installments- .o' customer of :ANK OF :ARODA didn<t give response regarding the services of the bank > company e0cept to the amount of loan and legal formalities-

;- Bank of Baroda having good brand image in the minds of customersD- "ajority of the people got loans from Bank of Baroda only A- "ost of the customers are not aware of the products of Bank of Baroda loans H- .ome of the customers felt that the interest rates are some what high 5- "ost of the people are directly go Bank of Baroda to apply a home loan I- .ome of the customer of Bank of Baroda already benefited through Bank of Baroda home loan products and services J- $ustomer awareness is medium about Bank of Baroda productsK- Bank of Baroda providing good services to their customers-

;- E-ono"i-

an o#iti-a# /ee3#+2 O-to,er BC2 @FFE2 CARLTON 7EREIRA2 g OCF@1OCFO QIN&E%TING IN N7AsR$ DT8E TREA%)R* MANAGEMENT2DECEM:ER 3u"ar27GC@1CCRse-uritisation0issues and ers e-ti.esR @FFE2.ina+

At The 3lobal 4evel' .)$,+#T#.AT#8& is becoming more popular among %is- #t is meant to avoid disparity between assets and liabilities of banks>%is- #n order to promote securitisation in #ndia +B# has constituted a working group on assets securitisation- Though securitisation is in a nascent stage' it holds great promise in areas like infrastructure' power and housing-

>, C7a +% %$ S%* %+a 4; F%8 )a 4 200>; V,S,Da+%4; 20, 128-1>= ITHE SARFAESI ACTJ The securities and reconstruction of financial assets and enforcement of security interest act' DCCD made effective on D;-I-DCCD is a step to reduce & As of Banks- The act also makes provision for asset reconstruction and securitisationREAS3NS F3R HUGE LEVEL 3F N2A&
B$ Wi##fu# Defau#t0

#f the borrower doesn<t pay though he has the capacity to pay- *e is termed as willful defaulter- The features of willful default are wrong use of funds and siphoning of funds- La -ourr2 Mi-hea# ;@FFD9 analysis in his study the factors affected the increase in the level of Annual percentages rates 7A +9 spread reporting during DCC5 over DCCH- the three main factors are changes in lender business practicesB 7D9 changes in the risk profile of borrowersB and 7A9 changes in the yield curve environment- The result show that after controlling for the mi0 of loan types' credit risk factors' and the yield curve' there was no statistically significant increase in reportable volume for loans originated directly by lenders during DCC5' though indirect' wholesale originations did significantly increase- %inally' given a model of the factors affecting results for DCCH1DCC5' we predict that DCCI results will continue to show an increase in the percentage of loans that are higher priced when final numbers are released in .eptember DCCJDr$ Rangara'an C$ ;@FFB< said that the financial system of #ndia built a vast network of financial institutions and markets over times and the sector is dominated by banking sector which accounts for about two1third of the assets of organi:ed financial sector8aa.io2 Kau i ;@FFF< stated that countries where a large proportion of the population lives in owner ? occupied housing are e0periencing higher unemployment rates- Than countries where the majority of people live in private rental housing' which might suggest that rental housing enhances labour mobility- #n this paper' they develop a simple inter temporal two region model that allow us to compare owner occupied housing markets to rental markets and to analy:e how these alternative arrangements allocate people in space and time- announced that it will offer loans for +s- D1;C lakh at ;D-5 percent the lowest rate offered by any housing finance provider' big brother .B# has taken the rate war in the home loans category to new heights- This is because' apart from the low rate' the interest on these loans is calculated on principal' which is reduced every month unlike

other housing finance companies which calculate interest on annually reducing basisNarasi"ha" Co""ittee ;BNNB< points out that although the banking system in our country has made rapid progress during the last two decades' there is decline in productivity and efficiency and erosion of profitability- The committee strongly make indications of liberali:ing' deregulating economy to make #ndian baking system more competitive and efficient- :an3ing Co""ission ;BND@9 reviewed bank operating methods and procedures and made recommendations for improving and moderni:ing these' particularly relating to customers services' credit procedure and internal control systems- #t observed that present methods of working out branch profitability are not appropriate and an integrated costing and financial reporting system is neededDe art"ent of :an3ing o erations and de.e#o "ent2 R:I @ Bombay observed that the rapid e0pansion of banks activities since ;LJC called for a phase of consolidations to improve the !uality of banks operational efficiency' productivity and customer services-

T78e

2)8'#* BSE 9 NSE/B3BK Fo&n%e% 1L08 He"%9&"r#ers Bank !( Ba !$a; Ba !$a C! p! a+% C%n+ %; 2'!+ N! - C-2<; G - B'!*k; Ban$ a E) 'a C!-p'%:; M)-8a# In$#a Ke7 8eo8$e M D M"$$7"; C7a# -an 9 Mana0#n0 D# %*+! In%&s#r7 Bank#n0 Cap#+a' Ma k%+& an$ a''#%$ #n$)&+ #%& Pro%&c#s L!an&; C %$#+ Ca $&; Sa"#n0&; In"%&+-%n+ "%7#*'%& %+*, Re en&e M R&, 1BB=@ * ! %& (USN >,L 8#''#!n) To#"$ "sse#s R&, 2;2B@ 8n (USN =0 8#''#!n) :e;si#e 555,8ank!(8a !$a,*!-

J)E%TIONNAIRE

;- &ame@ NNNNNNNNNNNNNNNNNNNN D- Age@ 7a9 Below AC 7b9 AC1HC 7c9 HC15C 7d9 Above 5C

A- 8ccupation@ 7a9 rofessional 7e9 8thers 7b9 .elf1employed 7c9 .alaried

H- =hich income group do you belongO 7 er annum9 7a9 Below D lakhs 7c9 H1I lakhs 7b9 D1H lakhs 7d9 I lakhs and above

5- *ave you ever taken *ome loan education loan2 others loanO 7a9 Yes 7b9 &o

I- #f yes' from which Bank>companyO 7a9Bank of Baroda 7d9 8B$ 7e9 others 7b9 .B# 7c9 &B

J- Are you satisfied with the services providedO 78n 5 point scale9 NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN NNNNNNN

*ighly dissatisfied highly dissatisfied dissatisfied

&eutral

satisfied

K =hat are the reasons for non payment o loanO

a personal problem others

b death

c lack of knowledge

L- =hile taking loan' which things attract you the mostO

7a9 #nterest rates 7c9 ay back period 7d9 8thers

7b9 .ervice rovided 7d9 .chemes

L- )ven if the #nterest rate is high for the personal loans' you will go for itO 7a9 Yes 7b9 &o

;C- *ow much loan amount you tookO 7a9 4ess than ; lakhs 7c9 51;C lakhs 7b9 ;15 lakhs 7d9 more than ;C lakhs

;;- )ven if the #nterest rate is high for the *ome loans' you will go for itO 7a9 Yes 7b9 &o

;D- (o you own a homePO Yes Q R #f Yes' then' roceedPPP &o Q R

;A- *ave you get it financedO Yes Q R &o Q R

#f Yes' then' proceedPP--

;H- =hat is reason for getting it financedO ;- &on availability of funds Q R D- +eluctance to pay cash in on go Q R A- Ta0 benefit Q R

H- Any other 7please specify9 -----------------------------------------

;5- %rom which of the following banks> company you have got if financedO Bank of Baroda Q R Bank of #ndia Q R .tate Bank of #ndia Q R Bank of Baroda S T

Any other 7please specify9 ------------------------------------------;I- %rom where have you got information about home loans schemeO 7$heck list9PPPPPPP-&ewspapers Q R *oarding>banners Q R "aga:ines Q R =ord of mouth Q R

Any other 7please specify9-------------------------------------------

;J- =hat problems did you face while getting home loansO a- 4ack of knowledge b- rocedural delays and non cooperation c- Any other 7please specify9 ----------------------------------------

;K- (id you face any problem after sanction of loanO

NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN NNNNNNN

;L- =hat suggestions do you want to give for improvements in loans .chemeO NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN NNNNNNN
T8ANK%

:I:LIOGRA78*

NEW% 7A7ER% The Times of #ndia %inancial )0press

WE: 7AGE%0 1

///$,an3of,aroda$-o" ///$s-ri,d$-o" ///$goog#e$-o"

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