Consumer Satisfaction Towards The Service of St. Milagres Credit Souhardha Co-Operative Ltd.

Consumer Satisfaction towards the Service of St. Milagres Credit Souhardha Co-operative Ltd.
with special reference to Sagar Branch
CHAPTER 1
RESEARCH DESIGN
Introduction
Statement of the problem
Review of literature
Methodology
Objectives of the study
Scope of the study
Limitations
Chapter scheme
CHAPTER 1
Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

Consumer Satisfaction towards the Service of St. Milagres Credit Souhardha Co-operative Ltd. with special reference to Sagar Branch
RESEARCH DESIGN
INTRODUCTION
The Co-operative Societies have a history of almost 100 years. The Co-
operative societies are an important constituent of the Indian financial system, judging
by the role assigned to them, the expectation they are supposed to be full fill, their
member and the member of offices they operate. The co-operative movement
originated in the west but the importance that such societies have assumed in India is
rarely parallel anywhere else in the world. Their role in rural financing continues to be
important even today and their business in the urban areas also has increased
phenomenally in recent years mainly due to the sharp increase in the number of
primary co-operative banks.
Co-operative societies are one of the forms of business organization. They

found all over the world. Initially, they are formed by the working and lower, middle
class people who constitute the weaker sections of the society for the purpose of safe
guarding their interests against exploitation by powerful business man. Co-operative
Societies collect funds through shares. They accept deposits and grant loans. They are
generally concerned with the rural and provide financial assistance for agriculture and
rural activities.
Co-operative societies have attempt to balance individuals needs with those of

the community as a whole by encouraging individual empowerment within the
structure of membership and responsibility to the group Co-operative society were
introduced by the British primarily to aid small-scale farmers and to improve access
to rural credit. The first Co-operative Societies Act was adopted in 1904, which then
only included credit co-operatives. The act was soon amended to grant the registration
at the State level on non-credit co-operatives, including housing and its
administration, allowing them to adapt the legislation to prioritize local needs. Co-
operative societies were created long before the advent of the fair trade movement to
help workers improve their livelihoods and protect their interests. A co-operative
society is a voluntary association started with the aim of service of its members. It is a
form of business where individuals belonging to the same class join their hands for
the promotion of their common goals.

The Co-operative Society is yet another form of business organization. It is

formed in a similar manner like a Joint Stock Company. It is a unique form of
organization. It is started with the motive of organizing and rendering services to its
members.
REVIEW OF LITERATURE
Singh (1990)
He made an attempt to examine how to co-operatives in India can be made

viable. It was found that the viability of various co-operatives in various sectors is far
from satisfactory. Most of the co-operative societies are non-viable, their capital has
been substantially eroded and they are sick or potentially sick. It was suggested that
causes responsible for failure of earning profit and incurring losses should be
identified and profit erosion audit on yearly basis should be adopted, till co-operatives
become viable.
Kumari Pushpa (1997)
She examines the retrospective and prospective analysis into the co-operative
credit institutions since independence. She observes that co-operative credit
institutions have achieved a lot quantitatively over the period of about forty five years
since independence. She concluded that the demand of time and circumstances also
desire that these Co-operative Credit institutions may stand by the race of change.
Verma S. K. (1999)
He examined the rural development through co-operatives. He has observed

that the co-operative institutions have been tremendously contributing in accelerating
the economic development of rural and urban areas of the country specially the
economically weak people. He has concluded that it is the best instrument to promote
social justice and prevention of exploitation at the gross root level.
Satyasai and Badatya (2000)

They conducted a study regarding restructuring rural credit co-operative

institutions. They analyzed performance of rural co-operative credit institution on the
basis of borrowing and lending operations, cost structure, financial viability, etc. and
found that co-operative system, in general, had failed to perform its functions
properly. The advised the co-operative banks to diversify the business and also to
overcome internal (raising transaction cost, declining business level this management
of over dues) and external (excessive bureaucratization, politicization) weakness.
Katar Singh (2003)
He observes that the Co-operatives frantically looking for new direction for
their survival in the changing economic scenario which would find new strategies for
their rejuvenation in policy. He has concluded that the new policy to be implemented
faithfully and its commitment to action translate into reality.
Ansari A. A. and Amir Ullah Khan (2004)
They have examined the agricultural sector reforms and role of co-operatives.
They have observed that the economic reforms, which have been introduced since
1991, have given new dimensions to precepts and practices of economic development.
They have concluded that the co-operatives have not been able to take the fullest
advantage of the economic reforms, as they have been bypassed in the reform process.
Joel Edvinraj D. (2004)
He examined the challenges before Indian co-operatives. He has observed that

co-operatives have to face competition from private and multinational sectors on the
one side and on the other side they have to rectify their losses. He has suggested that
governments help and support should be continued until co-operatives can meet
challenges and stand and survive by themselves.
Jain N. K. (2005)
He observes that the new disciplines are imposed on co-operatives for the first
time as they are required to be followed by all banking institutions. He concludes that
the co-operatives will have to take conscious view of their own functioning to survive
in the present context of competition by ensuring efficiency.

Bhole L. M. (2005)
In his work entitled The Role of Co-operatives in Socio-Economic

Development in India, has observed that the co-operatives are often riddled with a
host of problems such as concentration, state-dependence top-to-bottom approach,
lack of spontaneity, commercialization, power politics, corruption, etc. He concludes
that the institutionalization of the principle of co-operation ha perhaps tended to result
into the ideology of the co-operatives.
Avinash V. Raikar (2006)
He has analyzed the issues, problems and prospects of Co-operative Credit

Institutions (CCIs) in India. He has found that the major problems of the CCIs area
dual control, high over dues and low resource base. He concludes that the future
survival of these institutions would be determined by its ability to technologically
modernize themselves, innovation of new products and its reach among the urban and
rural population.
Banishree Das, Nirod Kumar Palai and Kumar Das (2006)
In their study on the problems and prospects of the co-operative movement in

India under the globalization regime. They have observed that the co-operative system
in India has the capacity and potentiality to neutralize the adverse effects emerging
from the process of globalization. They have concluded that co-operatives have
immense potential to deliver goods and services in areas where both the state and the
private sectors have failed.
Dr. R. Renuka and C. Elamathi (2013)
The in sum, reforms pertaining to the urban co-operative and short-term rural
co-operative sectors seem to have set in motion a process of revival in these sectors.
As regards the urban co-operative sector, the improvement in financial performance
and health is better established by now; for the short-term rural co-operative sector,
the revival is more fragile and yet to spread across all regions in the country and all
tires of the sector. In the coming years, it needs to be seen whether there vital is
sustained and broad-based. Further, it is imperative to pave the way for are vital of the

long-term rural co-operative sector given the vital role played by these institutions in
stepping up capital formation in Indian agriculture.
OBJECTIVES OF THE STUDY

1. To examine the quality of services provided by St. Milagres Credit Souhardha
Co-operative Ltd.
2. To study the establishment growth and progress.
3. To assess the working environment of the firm.
4. To make brief study of the customer service provided by the society.
5. To know about the loans and deposits facility of St. Milagres Credit
Souhardha Co-operative Ltd.
6. To analyze the views of customers and manager.
7. To study the problem connected with the society.
8. To suggest solution by studying the problems relating to the co-operative
society.
METHODOLOGY OF THE STUDY

The projects make use of a structural data in which a list of specified questions
asked to the respondents.
In order to get inference the data collected were analyzed with the help of
simple technique such as Percentage calculation and tabulation, in addition to this
graph are also drawn.
Sources of Data:
Primary data and Secondary data have been collected to bring out this project
report successfully.
1. Primary Data:
Tool for primary data collection is questionnaire. The data collected of
personal interview to the customer and manager.
2. Secondary Data:
The secondary data were collected by the sources such as: Books, Journals, and
Websites, which has related to the topic of the study.
3. Sample Size:

Survey is conducted for 30 respondents in the co-operative society.
STATEMENT OF THE PROBLEM

Before independence and even before co-operative movement the financial
services were enjoyed by only a few people. During those days money lenders played
key role and dominated the rural financial scene to create a strong co-operative
movement, it was felt that there is a need of strong co-operative societies.
Co-operative Societies face many challenges and problems; their performance

across sectors, activities and regions is variable. Due to many number of reasons such
as lower or negative spread, mounting non-performing assets, and entry of other
financial institutions as a result which there is an increasing competition. Therefore it
is need to focus on the analysis of financial performance of co-operative society the
study of Customer Satisfaction towards the Service of the St. Milagres Credit
Souhardha Co-operative Ltd with special reference to Sagar Branch.
SCOPE OF THE STUDY

The scope of the study is confined only to the St. Milagres Credit Souhardha
Co-operative Ltd in Sagar taluk.
LIMITATIONS OF THE STUDY

1. This report is confined only to St. Milagres Credit Souhardha Co-operative
Ltd Sagar Branch.
2. The respondents were busy with their own scheduled they could not spend
more time with student research.
3. The scope of the study is limited to 30 respondents.
4. Respondents may not express their honest opinion.
5. Due to the limited time the research could not be made more detailed.
6. Survey is conducted through questionnaires, so all the matters are not possible
to cover in the questionnaires.
CHAPTER SCHEME
CHAPTER 1 RESEARCH DESIGN
Introduction, review of literature, objectives, methodology, statement of the

problem, scope of the area, limitations and chapter scheme.

CHAPTER 2 CO-OPERATIVE SOCIETY
PART A : Co-operative Society
Introduction, origin, meaning and definition, features or principles, objectives,

role and importance, functions, formation, types, advantages, disadvantages, co-
operative movement and co-operative movement in Karnataka.
PART B : Consumer Behavior
Meaning and definition of consumer, rights and responsibilities of consumer.

Introduction, meaning and definition, characteristics, importance, determinants or
factors influencing, types, models and advantages of consumer behavior. Consumer
Protection Act 1986 and its salient features.
CHAPTER 3 PROFILE OF THE STUDY
PART A : Society Profile
History, objectives, services of deposits and loans, value added services and
growth.
PART B : Sagar Profile
Location, city municipal council, etymology, economy, demographics,

transport, religion, forest, irrigation, banks, education, TV and radio, rare disorders,
tourism places and notable persons from sagar taluk.
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION
CHAPTER 5 SUMMARY OF FINDINGS, SUGGESTIONS AND

CONCLUSION

CHAPTER - 2
CO- OPERATIVE SOCIETY
PART- A
CO- OPERATIVE SOCIETY
Introduction of the co-operative society

Origin of co-operative society
Meaning and definition of co-operative society
Features or Principles of co-operative society
Objectives of co-operative society
Role and Importance of co-operative society
Functions of co-operative society
Types of co-operative society
Advantages of co-operative society
Disadvantages of co-operative society
CHAPTER- 2
CO-OPERATIVE SOCIETY
PART- A
CO-OPERATIVE SOCIETY
INTRODUCTION OF THE CO-OPERATIVE

A co-operative is an autonomous association of people united voluntarily to

meet their common economic, social and cultural needs and aspirations through a
jointly owned and democratically controlled business. Co-operatives include non-
profit community organizations and businesses that are owned and managed by the
people who use their services (a consumer co-operative); by the people who work
there (a worker co-operative); by the people who live there (a housing co-operative).
Germany the birth place of co-operative credit movement in the world.

Herr.F.W. Raiffeisen and Herr. Franz Schulze of Germany are the pioneers in the field
of co-operative credit. The poverty and the heavy indebtedness of peasants to money
lenders forced Herr.F.W.Raiffeisen to promote co-operative credit societies in the rural
areas of Germany to free the peasants from the ditches of the money lenders and to
promote the economic condition of the peasants.
Similarly the poverty and industrial workers to money lender forced Herr.
Franz Schulze to promote co-operative credit societies in the urban areas Germany to
free the artisans and the industrial workers from the ditches of the money lenders and
to help them to stand on their own legs.
ORIGIN OF THE CO-OPERATIVE SOCIETY
Co-operative societies were created long before the advent of the fair trade
movement to help workers improve their livelihoods and protect their interests.
Co-operatives are organizations of people who have the same needs. Most
scholars recognize the business of the Rockdale pioneers of England as the first coop.
In 1844, this group of 28 men (weavers and skilled workers in other traders) formed a
co-operative society. They created business principles to guide their work and
established a shop in which to sell their goods. Increased pressure from the changing
market system was a driving force in their decision to move toward co-operation.
In 1844, as Henry David Thoreau was preparing to build a cabin on Walden

Pond, and the industrial revolution began to urbanize the western world, 28 workers
in Rockdale England formed the successful co-operative. These weavers, shoemakers,
cabinetmakers, tailors, printers, hatters and engineers wrote down a set of principles
to operate their food co-operative, which contributed to their success and spread to

other co-operatives around the world. Although co-operative societies had existed
previously, the successful establishment of the co-operative in Rockdale marks the
beginning of the modern co-operative era. The ideas of the Rockdale Pioneers were
simple, but profoundly transformed the traditional producer/consumer relationship
and created a pathway for small and large scale community based economic and
social development. Today, more than 150 years later, this heritage continues to affect
the lives of millions of working people worldwide.
Section 4, of the Indian Co-operative Societies Act, 1912

defines a co-operative
As a society which has its objective the promotion of economic interest of its
members in accordance with co-operative principles
A co-operative society is another means for forming a legal entity to conduct

business forming a company. It pools together human resources in the spirit of self
and mutual help with the object of providing services and support to members.
A co-operative society is a voluntary association of individuals having

common needs who join hands for the achievement of common economic interest. Its
aim is to serve the interest of the poorer sections of society through the principle of
self-help and mutual help. The main objective is to provide support to the members.
Nobody joins a co-operative society to earn profit. People come forward as a group,
pool their individual resources, utilize them in the best possible manner, and derive
some common benefit out of it.
MEANING AND DEFINITION OF CO-OPERATIVE SOCIETY
Meaning
A Co-operative society is an organization, which is service oriented rather than

profit oriented. It is an association of persons who joint to form an organization for
mutual benefit. In other words, co-operative organization is defined as a form of

organization where in person voluntarily associate together as human being on the

basis of equality for economic interests for themselves.
Definitions
According to Dr.T.V.Raju
Co-operative Society is a voluntary organization of various individuals, who

belong to economically weaker sections of the community, join together on the basis
of equality of control and equity of distribution of profits for the satisfaction of their
common needs.
According to Henry Walff
Co-operative society is an agency which is in a position to deal with small

man on his own terms accepting the security he has and without drawing on the
protection of the risk.
According to C.R.Fays
Co-operative society is an association for the purpose of joint trading

originating among the weak and conducted always in an selfish spirit of such terms
that all who are prepared to assume the duties of membership may share in it its
rewards in preparation to the degree in which they make use of their association.
A co-operative society is defined as an enterprise and directed by an

association of users, applying within itself, the rules of democracy and directly
intended to serve both its own members and the environment and it is naturally
expected to fulfill the needs and desire of the environment as it is an integral part of
the community.
FEATURES OR PRINCIPLES OF CO-OPERATIVE SOCIETY
A co-operative society is a special type of business organization. There are

some important features of co-operative of society which are as follows-
1. Open Membership

The membership of a co-operative society is open to all those who have a

common interest. The Co-operative Societies Act does not specify the maximum
number of members for any co-operative society. However, after the formation of the
society, the members may specify the maximum number.
2. Voluntary Association
A co-operative society is totally based on voluntary membership. Persons

having common interest can join as members. A member can join the society as and
when he likes. Continue for as long as he likes, and he leaves the society at will.
3. State Control
To protect the interest of members, co-operative societies are placed under

state control through registration. While getting registered, a society has to submit
details about the members and the business it is to undertake.
4. Sources of Finance
In a co-operative society capital is contributed by all the members. However, it
can easily raise loans and secure grants form government after its registration.
5. Democratic Management
Co-operative societies are managed on democratic lines. A group known as
Board of Directors manages the society. The members of the board of directors are
the elected representatives of the society.
6. Self-help through Mutual co-operation

Co-operative societies thrive on the principle of mutual help. Co-operative
societies convert the weakness of members into strength by adopting the principle of
self-help through mutual co-operation.
7. Nature of Formation
Some middle class and lower class people may form a society in order to
active some goals according to the rules of co-operative society. It does not require
long and complicated legal formalities at the time of formation.
8. Number of Members

The minimum number of members required is 10 but there is no limit to the

maximum number of members. Any person can become a member of the society.
9. Equality of Voting rights

Equality is the essence of co-operative undertakings. Each member has one
vote, irrespective of the number of shares held by him. Thus, the management of a co-
operative society is democratic.
10. Legal Entity

A co-operative society is required to be registered under the co-operative
societies act. It has its separate legal entity and perpetual succession. With the change
in the status of its members, the structure of a co-operative society is not changed.
OBJECTIVES OF CO-OPERATIVE SOCIETY

Co-operative societies and organizations have a number of main objectives.
The following points describe some of the main objectives of a co-operative society-
1. Enhanced Co-operation
Co-operative societies aim to encourage complete co-operation between
everybody involved with an organization. They are generally against the idea of any
sort of hierarchy and consider everyone to be equal. This can improve relationships
between staff members and senior management, as well as between service providers
and customers.
2. High level of Service

Better working relationships naturally lead to higher productivity levels, so a
better service is given to customers. This raises customer satisfaction levels, which is
the primary aim of many co-operative societies. For instances, student
accommodation units may be co-operative societies. Student will be happier with their
accommodation and staff members will find their working life much easier.
3. Higher Profits
Many co-operative societies are essentially out to make a profit and believe
that enhancing relationships will lead to high profit levels. Of course, this plan may
not always work, but in many cases it has proved effective. Some charities have also

benefited from operating as a co-operative society, as charity members become more

focused on their work, raising more money for the cause in question.
ROLE OR IMPORTANCE OF CO-OPERATIVE SOCIETY
Co-operatives are established with a view to improving the social economic

condition of a poor section of society. In developing countries majority of the people
are deprived economically and socially. In such a situation co-operatives are very
important to up lift their condition.
1. Economic Role
Co-operatives are important for improving the economic condition of the

members.
a) Provide Financial assistance
A credit co-operative society provides the credit to the members at reasonable

interest rate. Banks are limited in urban areas and banks available in the rural areas
dont want to grant small amount to the poor community. Co-operatives protect the
members from the exploitation by local money lenders and others.
b) Fulfills various needs of members
A multi-purposed co-operative society fulfills the various needs of the

members by providing loans, supplying improved seeds, fertilizers, agricultural tools
and other necessary goods and services. The member of the society can get these
services under the suitable terms and condition.
c) Increase Saving habit
Co-operative societies develop the habit of saving among members. They

encourage saving among members. They provide the interest on their saving and
educate them to reduce unproductive expenditure.
d) Employment opportunities
Co-operatives provide the credit to conduct the various productive activities.

The members of the societies can start different productive activities in accordance

with their skill and ability. If facilities to solve the unemployment problems in some
extent.
In addition co-operative help to improve the living standard of the members by

providing employment opportunities and distributing quality goods at reasonable
price. It promotes the concept of self employment.
2. Social Role
Like economic importance, co-operatives have social importance as well.

They are based on principle of mutual help. Thus, the feeling of mutual co-operation
is enhanced. They educate the members and create the social awareness.
3. Political Role
In addition to the economic and social importance, co-operative have some

political importance. They are based on principle of equality and equal distribution of
income. Co-operatives are based on democratic norms and values. They promote
individual freedom.
In this way co-operative have economic, social and political importance.

Because of this reason, co-operatives have been proved as a suitable form of business
organization to uplift the social economic status of the poor people in developing
countries.
FUNCTIONS OF CO-OPERATIVE SOCIETY
The multi-purpose co-operative society has large number of functions to

discharge. As the name indicates its responsibility for different purpose for which it
has been set up. It can work for arranging credit, improved seeds, agricultural
implements, fertilizers, sanitation, health etc. for its members. Normally it discharges
the following functions.
1. Making arrangement for Credit

The main task of these co-operative societies is to arrange for short term credit
for its members in order to help them to improve their agricultural and other trade and
business.

2. Encouraging the improvement method of Agriculture

These societies arrange supply to the members seeds, fertilizers, agriculture
implements etc. They also arrange for irrigation facilities so that the members may be
able to have higher agricultural yields.
3. Marketing and Business

These societies not only help the farmers to improve their agriculture but also
help them for marketing of the goods. Through such facilities they get proper price for
the agricultural products and other goods produced by its members.
4. Set up of subsidiary Cottage and Small Scale Industries

These societies help their members to set up other trades and industries.
Though these cottage industries and small-scale industries, the economic condition of
the members is improved and they are able to improve their standard of living.
5. Helping members to increase their Standard of living

These co-operative societies by providing various types of facilities for their
members, improve their standard of living. They also carry out the programme of
health, education and social education. They make arrangements for health and
economic facilities, education and recreation for their members.
6. Encouraging the member for Saving

These societies act as saving agencies and encourage their members to save a
part of their income for their future needs. Through these savings, the members of
such co-operative societies are able to get loans and also solve their problems.
TYPES OF CO-OPERATIVE SOCIETY

The following are the main types of co-operative societies:
1. Producers Co-operative Societies

These are formed to eliminate the middlemen and capitalist groups from the
industrial production. Producer co-operative societies were first promoted in France in
the middle of the 19th century. Producer co-operative societies are formed by small
producers. Its main purpose is to produce goods for the requirements of its members.

Artisans and Craftsmen to undertake to small and cottage industry on co-operative

basis. Weavers Co-operative Societies are examples of co-operative societies.
2. Consumer Co-operative Societies

The foundation of consumers co-operative society was laid by Rockdale
Pioneers in Manchester in England. The consumer co-operative societies are the
oldest form of co-operatives. Consumer co-operative societies are formed by the
consumer belonging to the middle and low income groups. They are former by the
general public and the employees of the industrial and commercial undertakings and
Government departments in urban areas and also by the rural people they seen to
ensure steady supply of pure and unadulterated consumers goods such as provisions,
textiles, stationary articles etc. at fair price.
3. Marketing Co-operative Society

Co-operative marketing society are formed by farmers, artisans and small
producers, they are organized for the purpose of eliminating middlemen and
marketing the products of the members at remunerative price.It is the voluntary
association of producers formed for the object of arranging the disposal of their
output. The profit of the sale of the products is distributed among the contributing
producers according to their individual contribution to the pool. This kind of society is
particularly useful for the small producers and agriculturists.
4. Insurance Co-operative Society

This type of co-operative society is formed for the objects of providing group
insurance facilities to its members. It makes the contract with sound insurance
company on collective terms and conditions and thus pay lower premium rate to
insurance company as compared with ordinary policy holders.
5. Housing Co-operative Society
It is an association of middle and low income groups of people. Generally it is

formed in urban areas. The main purpose of this form of society is to protect its
members against exploitation by landlords. It not only grants financial assistance to its
members but also achieve the economics of purchase of building material in bulk. In
order to become a member of the society one must buy at least one share of the

society. The liability of the member is limited to his capital contributed. It is also
called Building Society.
6. Co-operative Framing Society
This form of society is formed with the object of obtaining the benefits of
large scale farming and maximizing agricultural products. It is basically agricultural.
Co-operative which is confined to agricultural countries. Its members generally relate
to the formers including those owing land.
7. Credit Co-operative Society
Germany is the birth place of credit co-operative societies. Co-operative credit

society was started in the middle of the 19th century to solve the problem of
agricultural finance of villages. Later they were extended to urban to solve the
problems of shorten finance of the middle income groups such as salary errors,
industrial workers etc. Today co-operative credit society are found in rural as well as
urban areas they are known as primary credit societies and in urban areas they are
known as co-operative banks.
ADVANTAGES OF CO-OPERATIVE SOCIETY
Following are the important advantages or merits of co-operative society:
1. Advantage for formers
Farmers can get fertilizers and seeds at low prices from such co-operative
societies. Formers can also self their production at high rate or prices through co-
operative societies.
2. Easy formation
The formation of co-operative society is very easy. The formalities for

registration are simple and formation expenses are also normal. The registration of a
society is not compulsory but it is desirable to have its registration.
3. Equal rights
All members of co-operative society enjoy equal right of vote and ownership.
Each shareholder has only one vote in the management of co-operative societies.

4. Economic democracy
Co-operative society is a domestic form of organization. Every member is

allowed to participate in the management of the business. Each member has the right
to cast vote. The decision of majority is honored.
5. Elimination of members
Co-operative society eliminates the profit of the middlemen. These societies

purchases goods directly from the producer for members and provide them on
wholesale rate to society members.
6. Financial assistance
These societies also provide financial assistance to its members. In case of house
building co-operatives housing society provides loan for the purchase of inputs.
7. Friendly relations
A co-operative society is a mean of developing friendly relations among the

members. A society provides a platform for the introduction of members with each
other.
8. Improve the standard of living
Such societies provide the good and services to the members of the society at
low prices. Due to this, the purchasing power of the people increases and their
standard of living improves.
9. Increase in employment
The co-operative societies also increase the employment opportunities for
people. Thousands of people are engaged in different types of co-operative societies.
10. Mutual co-operation

It is worthwhile to mention here that co-operative society is very useful for
creating the spirit of friendship and brotherhood among the members. Co-operative
society is the basic need of human being in modern era.

11. No monopoly
A start of the society is the end of monopoly. The monopoly eliminates the
competition and controls the market and prices. The society tries to restore
competition and to eliminate control over market and prices.
DIS-ADVANTAGES OF CO-OPERATIVE SOCIETY

Following are the disadvantages of co-operative societies:
1. Lack of capital
Generally the members of co-operative societies are related to poor group and
they cannot provide the capital on large scale. External financial resources are also
limited. So, co-operative society faces the shortage of capital, which is a handicap to
their development.
2. Untrained supervision
The government has sufficient control over the movement of these societies.
These societies cannot prosper because the staff appointed for supervision is mostly
untrained.
3. Defective organization
The organizations of co-operative societies are defective and these cannot
operate efficiently to fulfill their objectives.
4. Illiterate and ignorant

In our country, the villages are generally illiterate and ignorant. So, they are
not familiar with the basic concept of the co-operative societies.
5. Lack of experience
The members of societies have less experience of business. Due to lack of capital,
they cannot hire the services of experts.
6. Lack of discipline
Every member of co-operative society considers himself as the owner of the

business. Due to lack of discipline, business suffers a loss.
7. Lack of sincere management

It is our common observation that the management of society remains in the

hands of selfish and dishonest persons or members who obtain undue advantage form
their powers. So, business suffers a loss.
8. Lack of profit incentive
It is not a profit earning institution. Due to absence of profit incentive, the

progress of co-operative society is very poor.
9. Lack of secrecy
There is no secrecy in the business of co-operative societies.
10. Lack of knowledge
The members of co-operative society do not know the principles and rules of
society. So, they create great problem for society.
11. Lack of unity
In the absence of proper education and training, it is useless to think about

unity. The lack of unity lends towards the destruction of the business.
12. Government control
The co-operative department of the provincial government supervises the

work of all co-operative societies. The business of a society is not free like other
forms of business, so it cannot earn maximum profit.

PART- B
CONSUMER BEHAVIOUR
Meaning and definition of consumer

Rights of consumer
Responsibilities of consumer
Introduction of consumer behavior
Meaning and definition of consumer behavior
Characteristics of consumer behavior
Importance of consumer behavior
Determinants or Factors influencing consumer behavior
Types of consumer behavior
Advantages of consumer behavior
Consumer Protection Act, 1986
Salient features of Consumer Protection Act, 1986
PART- B
CONSUMER BEHAVIOR
MEANING AND DEFINITION OF CONSUMER
An individual who buys products or services for personal use and not for
manufacture or resale. A consumer is someone who can make the decision whether or

not to purchase an item at the store, and someone who can be influenced by marketing
and advertisements. Any time some-one goes to a store and purchases a toy, shirt,
beverage or anything else, they are making that decision as a consumer.
Consumer (Sec 2(d) :

It means any person who-
1. Buys any goods for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payments
and includes any user of such goods other than the person who buys such
goods for consideration paid or promised or partly paid or partly promised
or under any system of deferred payments. But it does not include a person
who obtains such goods for resale for any commercial purpose.
2. Hires are avails of any services for a consideration which has been paid
promised to pay.
Commercial purpose does not include use by a consumer of goods
bought and used by him exclusively for the purpose of earning his lively
would by means of self employment.
RIGHTS OF CONSUMER
President John F. Kennedy, the former President of USA, in order to establish

the rights of consumers, identified fundamental rights.
1. The right to Safety
The assertion of this right is aimed at the defense of consumers against injuries
caused by products other than automobiles vehicles, and implies that products should
cause no harm to their users if such use is executed as prescribed. The Consumer
Product Safety Commission (CPSC) has jurisdiction over thousands of commercial
products and powers that allow it to establish performance standards, require product
testing and warning labels, demand immediate notification of defective products and
when necessary, force product recall.
2. The right to be Informed
Every consumer has the right to get the correct information about the product
he is buying or the service he is availing. This will include information about quality,

quantity, purity, standard and the purchase price. It is the responsibility of the
manufacturer to extend all the related information to the consumer. The right to be
informed has an economic basis.
3. The right to Choose
The right to free choice among product offerings states that consumers should
have a variety of options provided by different companies from which to choose. The
federal government has taken many steps to ensure the availability of a healthy
environment open to competition through legislation including limits on concept
ownership through Patent law, prevention of monopolistic business practices through
Anti-Trust Legislation and the outlaw of price cutting and gouging.
4. The right to be Heard
This right asserts the ability of consumers to voice complaints and concerns
about a product in order to have the issue handled efficiently and responsively. While
no federal agency is tasked with the specific duty of providing a forum for this
interaction between consumer and producer, certain outlets exist to aid consumers if
difficulty occurs in communication with an aggrieving party.
5. The right to seek Redressal
Every consumer has the right to seek redressal against any defect in the
product, any unfair trade practices or any dissatisfactory services.
If the quality of the product or service falls short of sellers claim, the
consumer has the right to protest and ask for certain remedies. The right to redress
reduces cognitive dissonance among the consumers and increase consumers
confidence in the product.
6. The right to basic needs
Basis needs in a mans life are safe-drinking water, unadulterated food, pure
air, basic services like health, education up to certain age etc., which must be fulfilled.
Government of the country should be alert to see that the fellow citizens are able to
get their basic needs.
7. The right to Consumer education

This right gives the consumer right to acquire knowledge and information. The
duty to make consumers aware of his rights and remedies available, fall under the
right to consumer education. Education materials distributed by organizations help
them to increase their direct contract with the consumers, a goal of relationship
marketing and simultaneously reducing the role of the middlemen.
RESPONSIBILITIES OF CONSUMER
The responsibilities of consumers are:
1. To be aware of his/her rights in all aspects of consumption.

2. To verify the source of goods by reading the particulars of the country of
origin.
3. To look for the specifications of the good he/she wishes to buy.
4. To comply with the health rules that make the item or product fit for use.
5. To abide by the instructions those are affixed on the packet or offer.
6. Not to purchase materials, products or goods from street vendors.
7. Not to be tempted by misleading advertisements.
8. To read the content of the goods warranty card before purchasing.
9. To examine the goods an ensure that they are defect-free before leaving the
shop.
10. To request proper receipt/bill from the shopkeeper.
INTRODUCTION OF CONSUMER BEHAVIOR
The study of consumer behavior implies how and why a particular consumer
or group reacts to decisions of producers. Normally in consumer behavior one studies
the behavior of consumer for consumption of goods, but in the study the behavior of
buyer is also included. He may be user or ultimate consumer or he may be buying for
someone else. Therefore consumer behavior implies that study of behavior of
purchaser of all goods and services whether purely consumer goods, intermediate
goods or capital goods. In other words, it implies study of attitude of all consumers in
disposing of their resources.
MEANING AND DEFINITION OF CONSUMER BEHAVIOR
Consumer behavior is the study of how individual customers, groups or

organizations select, buy, use and dispose ideas, goods and services to satisfy their
needs and wants.
According to Engel, Blackwell and Mansard

Consumer behavior is the actions and decision processes of people who

purchase goods and services for personal consumption.
According to Loudon and Della Bitta
Consumer behavior is the decision process and physical activity individuals

engage in when evaluating, acquiring, using or disposing of goods and services.
According to Prof. Y. W. Paul
Consumer behavior is all physical, social and physical behavior of potential.

Customer as they become aware to evaluate, purchase, consume and tell others about
the productions and services.
Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to the marketer,
because this may influence how a product is best positioned or how we can encourage
increased consumption.
CHARACTERISTICS OF CONSUMER BEHAVIOR
Some characteristics of consumer behavior are:
1. Consumer behavior is the process by which individual decide whether what

when from where and how much to buy.
2. In some cases the decision is not by the consumer himself but buy a third part
which makes the study of behavior a complex one.
3. Individual behavior is influenced by internal factors like needs, attitudes etc
and also by external factors like family, social group cultural states etc.
4. It covers both mental and physical activities of a buyer.
5. It covers both mental and physical activities of consumer.
6. Consumer behavior is influenced by the marketer so consumer behavior can
be regulated as stimulus response.
7. Buyer behavior is dynamic and very complex.
8. Consumer behavior is an integral part of human behavior and so if cannot be
separated from human behavior.
9. In many case the buyer behavior is the sum total of the behavior involves both
individuals process and basically group process.
10. Consumer behavior is social in nature. So social environment plays an
important role in shaping behavior.

IMPORTANCE OF CONSUMER BEHAVIOR
Role or importance of consumer behavior can be explained with reference to

the stated as under:
1. Modern Philosophy
It concerns with modern marketing philosophy- identify consumers needs and

satisfy them more effectively than competitors. It makes marketing consumer-
oriented. It is the key to succeed.
2. Achievement of Goals
The key to a companys survival, profitability and growth in a highly

competitive marketing environment is its ability to identify and satisfy unfulfilled
consumer needs better and sooner than the competitors. Thus, consumer behavior
helps in achieving marketing goals.
3. Useful for Dealers and Salesman
The study of consumer behavior is not useful for the company alone.
Knowledge of consumer behavior is equally useful for middlemen and salesman to
perform their tasks effectively in meeting consumer needs and wants successfully.
Consumer behavior thus, improves performance of the entire distribution system.
4. More relevant Marketing Programme
Marketing programme, consisting of product, price, promotion and

distribution decisions can be prepared more objectively. The programme can be more
relevant if it is based on the study of consumer behavior. Meaningful marketing
programme is instrumental in realizing marketing goals.
5. Adjusting Marketing Programme over time
Consumer behavior studies the consumer response pattern on a continuous

basis. So, a marketer can easily come to know the changes taking place in the market.
Based on the current market trend, the marketer can make necessary changes in
marketing programme to adjust with the market.
6. Predicting Market Trend

Consumer behavior can also aid in projecting the future market trends.
Marketer finds enough time to prepare for exploiting the emerging opportunities
and/or facing challenges and threats.
7. Consumer Differentiation
Market exhibits considerable differentiations. Each segment needs and wants

different products. For every segment, a separate marketing programme is needed.
Knowledge of consumer differentiation is a key to fit marketing offers with different
groups of buyers. Consumer behavior study supplies the details about consumer
differentiations.
8. Creation and Retention of Consumers
Marketers who base their offerings on recognition of consumer needs find a

ready market for their products. Company finds it easy to sell its products. In the same
way, the company due to continuous study of consumer behavior and attempts to meet
changing expectations of the buyer, can retain its consumers for a long period.
9. Competition
Consumer behavior study assists in facing competition too. Based on

consumers expectations, more competitive advantages can be offered. It is useful in
improving competitive strengths of the company.
10. Developing New Products
New product is developed in respect of needs and wants of the target market.
In order to develop the best-fit product, a marketer must know adequately about the
market. The consumer behavior is the base for developing a new product successfully.
DETERMINANTS OR FACTORS INFLUENCING CONSUMER

BEHAVIOR
The determinants of consumer behavior can be grouped into three major

captions namely: economic, psychological and sociological. An attempt is made to
elucidate these with least complications.
A. Economic Determinants

Economic scientists were the first among social scientists to study consumers
and their behavior and provided the details about the solutions to the consumer and
consumption problems. Economists, as we are aware, took man as a social and
rational animal. The basic economic determinants among others are:
1. Personal Income
Ones income is the reward for ones economic efforts. Income means purchasing
power. When we talk of income in marketing sense, we are more concerned with
disposable income and discretionary income. Disposable income is the amount of
money that a consumer has at his disposal for spending or saving or both.
Discretionary income is the income which is available after meeting the basic needs
of living.
2. Family Income
Where a consumer is the member of a joint family, the buyer behavior is

influenced by the family income rather than the individual income. It does not mean
that one can ignore the individual income, for family income is the aggregate of
individual income of all the members of the family.
3. Consumer Income Expectations
It is the future income expectations of the consumer that influences such

consumer behavior. It is the optimism or the pessimism about consumer income that
determines the level of current spending.
4. Consumer Liquid Assets
It is the consumer liquid asset positions that influence the consumer behavior.
Liquid assets of consumers are the assets held in the money or near-money forms of
investment. The best examples of this kind are hard cash, bank balance, bank deposits,
shares and bonds and saving certificates.
5. The level of Standard of living
The consumer behavior has the impact of the established standard of living to
which he is accustomed. Even if consumer income goes down, the consumer spending

will not come down proportionately because, it is very difficult to come down from an
established standard of living.
B. Psychological Determinants
The major psychological determinants internal to the individual are

motivation, perception, learning, attitude and personality.
1. Motivation
Motivation is an intervening variable between stimulus and response and a

governing force of consumer behavior. Motivation refers to the drives, urges, wishes
or desires which initiate the sequence of events known as behavior, as defined by
Prof. M. C. Burk.
2. Perception
Perception is the process through which a consumers mind receives,

organizes and interprets physical stimuli. It is influenced by various factors such as
color, size and brand. Marketing management is concerned with the understanding of
the process of perception because, perception leads to thought and thought leads to
action.
3. Learning
Learning is closely related to knowledge, skill and intention. It appears that
knowledge and intention are acquired through experience and that skill comes from
practice. Learning is not directly observed, but rather is inferred from a change in
performance.
4. Attitudes
An attitude is a tendency to respond to a given product in a particular way.

Awareness about attitudes helps the marketing managers because many consumer
behaviors are related to attitudes. Attitudes are having three components: the
cognitive, the effective and the behavioral.
5. Personality

Personality refers to a persons consistent way of responding to a wide range

of situations. Personality consists of the mannerisms, habits and actions that make a
person an individual and thereby serve to make him distinct from everyone else. It is
the function of innate drives, learned motives and experience.
C. Sociological Determinants
The sociologists and social psychologists have attempted to explain the

behavior of a group of individuals and the way in which it affects and conditions and
individuals behavior in marketing or purchase decisions.
1. Family
Many of the decisions made by consumers are taken within the environment of
the family and are affected by the desires, attitudes and values of the other family
members. Family, as a primary group, is vital because, it links the individual with a
wider society and it is through this that the individual learns the roles appropriate to
the adult life.
2. Reference Groups
Each person in the society is not only the member of his family but the
member of some group or groups outside the family circle. These groups can be called
as Reference Groups.
3. Opinion Leaders
Opinion leaders or influentials play a key role in influencing the buying

behavior of their followers. Very often we come across situations where a person
refers to an individual than a group in formulating his or her behavior pattern. The
individual to whom such reference is made by a person or persons is the opinion
leader.
4. Social Class and Caste
Social class is a relatively permanent and homogeneous division of a society

into which individuals or families sharing similar values, life-styles, interests and
behavior can be categorized. Social class is a larger group than intimate group in
structure. Caste is the group of the membership by birth.

5. Culture
Culture refers to all these symbols, anti-factor and behavioral patterns which
are passed on socially from one generation to the next. Cultures are specific to the
areas in which they evolve. It includes cognitive elements, beliefs, values and norms,
signs and non-normative behavior.
TYPES OF CONSUMER BEHAVIOR
The more expensive the good is the more information is required by the
consumer. There are four types of consumer buying behavior on the basis buyer
involvement while purchasing any product.
1. Complex Buying Behavior
When the consumer is highly involved in the buying and there is a significant
difference between brands then it is called complex buying behavior. So in this case
the consumer must collect proper information about the product features and the
marketer must provide detailed information regarding the product attributes
2. Variety Seeking Behavior
In this case consumer involvement is low while buying the product but there
are significant difference between brands. Consumers generally buy different products
not due to dissatisfaction from the earlier product but due to seek variety. Like every
time they buy different washing detergent just for variety.
3. Dissonance Buying Behavior
Here consumer is highly involved in the purchase but there is little difference
between brands. Like consumer while buying a floor tiles buy them quickly as there
are few differences between brands.
4. Habitual Buying Behavior
In this case there is low involvement of the consumer and there are few
differences between brands. The consumer buys the product quickly. For eg.
Toothpaste.

ADVANTAGES OF CONSUMER BEHAVIOR
The main advantages of consumer behavior are:
1. Consumer behavior is save disaster or can be avoided are minimized.

2. It helps in formulating right marketing strategy.
3. Through the study of can be one is able to know correctly the factors which
influence buyer decision of consumer.
4. It suggested the everyone does not buyer price consideration as utility
consideration only.
5. It helps in development of new product.
6. It helps in product orientation and re-orientation of packaging.
7. It helps the consumer to study their behavior.
CONSUMER PROTECTION ACT, 1986

Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in
1986 to protect the interests of consumers in India. It makes provision for the
establishment of consumer councils and other authorities for the settlement of
consumers disputes and for matters connected therewith.
The Consumer Protection Act was passed in 1986 and it came into force from
1 July 1987. The main objectives of the Act are to provide better and all-round
protection to consumers and effective safeguards against different types of
exploitation such as defective goods, deficient services and unfair trade practices. It
also makes provisions for simple, speedy and inexpensive machinery for redressal of
consumer grievances.
SALIENT FEATURES OF CONSUMER PROTECTION ACT, 1986

The salient features are:
1. It is highly progressive piece of social welfare legislation and is acclaimed as
the Magna Carta of India.
2. It provides effective safeguards to the consumers against different types of
exploitation such as defective goods, unsatisfactory services and unfair and
restrictive trade practices.
3. For enforcement of the rights of the consumers, the Act has created Special
Consumer Courts.

4. The Act provides a Simple, Speedy and Inexpensive Redressal of consumer

grievances relating to defective goods, deficient services and unfair and
restrictive trade practices.
5. It has convenient procedure and there is no obligation to engage an advocate.
6. All suppliers/providers of goods and services, whether in private or public co-
operative sector are covered by the Act.
7. A time-frame for the disposal of cases is the important aspect of redressal of
consumer grievances.
8. The Act allows for class action complaints by groups of consumers having
common interest.
9. The Act covers complaints relating to unfair and restrictive trade practices
10. It provides for complaints against charging in excess of the price of a product
fixed by a
law or rule and/or displayed on the packaged commodities.
11. To organize consumer resistance further and educate them, the Act also
provides for the information of consumer protection councils in every State.
CHAPTER- 3
PROFILE OF THE ST. MILAGRES CREDIT

SOUHARDHA CO-OPERATIVE LTD AND SAGAR
PART- A

PROFILE OF ST. MILAGRES CREDIT SOUHARDHA
CO-OPERATIVE LTD
PART- B
PROFILE OF SAGAR

CHAPTER- 3
PROFILE OF ST. MILAGRES CREDIT SOUHARDHA
CO-OPERATIVE LTD
PART- A
PROFILE OF ST. MILAGRES CREDIT SOUHARDHA CO-

OPERATIVE LTD.
HISTORY
Our Founder and Managing Director Mr. George Fernandez resided at

Mallapur from 1993 to 2007. Mallapur is a small village mostly comprising of
illiterate and economically backward families.
The Central Government of India has set up Nuclear Power Plant at Kaiga,
thus making Mallpur as residential township for their employees. Besides this
Karnataka Power Corporations Electricity generating station is also situated at Kadra
which is within the radius of 5 kilometers from Mallapur. As a result the villages
Kaiga and Kadra became well known in our country.
The People of Mallapur and the surrounding area comprises of illiterate, poor,
downtrodden and economically backward classes. They approach with some money
lenders for their financial needs who were charging heavy rate of interest for their
money lending. Observing pathetic condition of people, to change this scenario by
helping needy poor people Mr. George S. Fernandez, thought of opening a credit
society to provide financial need to such people with the easy made of repayment. He
took leadership (initiation) to register the society. Thus, the St. Milagres Credit Co-
operative Society took birth on 14th September 2003.
By the encouragement of members, the Board of Directors of Milagres

opened its branch and Head Office at Karwar on 15 th May 2005. On 17th September
2006, Milagres inaugurated its third branch at Sirsi. Apart from these Services,
Milagres introduced the Value Added Services like E-stamping services (issuing Bond
papers), Cheque Clearance, RTGS/NEFT, Money Transfer Services etc.
In the year 2007, our Society was registered under the Karnataka Sahakari
Souhardha Act, 1997 and thereafter we named our society as St. Milagres Credit
Souhardha Co-operative Ltd., Karwar.
In Sagar, St. Milagres Credit Souhardha Co-operative Ltd., was established in

12th February 2012. It is a 12th Branch of St. Milagres Credit Souhardha Co-operative
Ltd. This Branch inauguration function was done by-
Blessings and Inauguration - Fr. Flex J. Noronha
President - Rev. Fr. William Winifred
Chief Guest - Shri Radhakrishna Nayak Bengre,
Shri K. N. Shreedhara,
Shri R. C. Manjunath,
Shri Tip Top Basheer,
Shri P. M. Fernandez.
Branch Manager:
Mr. Franklin Furtado
Employees:
Purushottam Prabhu - Loan Incharger
Joseph Desouza - Deposit Incharger
Snitha T. K. - Passing Ofiicer
Soumya D. C. - Cashier and Branch Manager Secretary
Anil Kumar - Junior Assistant
Raghavendra - Junior Assistant

OBJECTIVES (VISION AND MISSION)
St. Milagres Credit Souhardha Co-operative Ltd., is growing at a rapid pace in

its effort to be the largest financial service provider throughput Karnataka.
At MCMC, we value our staffs professionally and personally. We are always

interested in absorbing enthusiastic youths who will reinforce the strength of our co-
operative and become our future leaders and achievers. Staffs are offered Fast Track
career progression opportunities, Learning and Development initiatives focusing on
capability development, Cross Functional time bound Strategic Assignments,
Internal redeployments, Job rotations and need based cross business transfers to
develop their well rounded managerial and leadership capabilities.
MCSC pursues a strong Employee Value Proposition of Creating and Sharing

Value with a vision to build an organization. We encourage innovative ideas and
individualistic thinking on matters pertaining to their field of work.
SERVICES
DEPOSITS
1. Saving Bank (S. B.)
Rate of interest 4.5%
These accounts are designed to help the individuals (personal customer) to

inculcate the habit of saving money and meet their future requirement of money.
Amount can be deposits/withdrawals from these amounts by way of
cheques/withdrawals slips. It helps the customers to keep minimum cash at home
besides earning interest.
2. Current Account (C. A.)
The Current Account is meant to make the day to day transactions easier to the
account holder. There will be no restriction on number of transactions during a year or
like that unlike in saving bank account. Hence they collect maintenance charges in the
form of service charges No interest is paid whatever the balance kept in current
account since it is meant for drawing by the account holder at any time.

3. Recurring Deposit (R. D.)

Rate of interest 10%
Recurring Deposit is a special kind of Term Deposit offered by banks in India
which help people with regular incomes to deposit fixed amounts every month into
their Recurring Deposit account and earn interest at the rate applicable to Fixed
Deposits. This deposit matures on a specific date in the future along with all the
deposits made every month.
Bumper Recurring Plans-
Lakpati Scheme
Deposit Rs. 2,500 for every 36 months and get Rs.1,05,180 + Rs.1,000 Bonus
on maturity
Bhavishya Nidhi Scheme
Deposit Rs.1,200 for every 36 months and get Rs.50,486 + Rs.500 Bonus on
maturity.
Bala Bhavishya Nidhi Scheme
Deposit Rs.500 for every 60 months and get Rs.40,014 on maturity.
Kalyan Nidhi Plan
Invest Rs.1,000 for every 180 months and earn Rs.4,14,774 on maturity.
Child Future Education Plan
Invest Rs.1,500 for every 144 months and earn Rs.4,15,683 on maturity.
Deposit Rs.750 for every 144 months and get Rs.2,07,841 on maturity.
This can be invested in multiples to earn more and more.
4. Fixed Deposit (F. D.)

A fixed deposit is a financial instrument provided by banks which provides

investors with a higher rate of interest than a regular savings account, until the given
maturity date.
Term Period Rate of Interest

15 90 days 8%
91 181 days 9%
Short Term Deposits
182 365 days 9.5%
366 days Below 3 years 10.5%
555 days 11%
Long Term Deposits
3 years and above 10%
999 days 11.5%
Special interests rate offered for the reserved categories: Widows, Physically
challenged, Religious Institutions (Churches, Temples, Mosque etc.), Armed Force
personnels, Ex-servicemen, family members of the Martyrs of Indian Nation,
Policemen and Retired Policemen of state. Additional 1% Rate of Interest offered to
Senior Citizens on investments of 366 days and above (excluding investment of 555
days and 999 days).
5. Pigmy Deposit (P. D.)
Money can be deposited into an account on daily basis. The unique

characteristic of this scheme is that an agent from respective bank collects money to
be deposited on daily basis, from door steps of account holder of the scheme.
Above 1 year and up to 2 year 3%
3 years and above 4%
6. Monthly Income Scheme (MIS)
Rate of interest 11% for 3 years (for.eg. on an investment of Rs.1,10,000 get

Rs.12,000 interest).
7. Anjali Cash Certificate (ACC)
This is a most popular scheme in our co-operative. The interest earned is

compounded interest Cash Certificate Deposit can open for a period ranging from 1
year to 7 years. Double your money in just 84 days.

8. Ujwal Bhavishya Nidhi Plan
Invest Rs.10,000 and get maturity value of Rs.29,000 after 120 months (It can
be invested in Rs.1,00,000 and Rs.2,00,000 above).
LOANS
1. Housing Loan (H. L.)
For construction of New House, Apartments, Buildings, Renovation of

existing building, Purchase of Shops or to Invest in Real Estate purpose, we provide
you easy installment repayable at 60, 72, 84 and 120 months. Up to Rs. 50 lakhs.
Rate of Interest 17% (reducing interest) for loan up to Rs. 4.99 lakhs.
Rate of Interest 17.5% (reducing interest) above Rs.5 lakhs.
2. Business Loan (B. L.)
To start a new business or to develop your existing business, we provide

Business Loan with repayable at 36, 48 and 60 months, Up to Rs. 10 lakhs.
Rate of Interest 16% (reducing interest) for loans up to Rs. 4.99 lakhs.
Rate of Interest 16.05% (reducing interest) above Rs. 5 lakhs.
3. Personal Loan (P. L.)
This is a clean loan given to employees Private, Public and Government

sectors in order to fulfill their commitments against security of two respectable
sureties.
Rate of Interest 17% (reducing interest)
4. Gold Loan (G. L.)
Get instant loan against gold with safe and secure loan processing on the spot.
Loans advanced up to 80% of gold valuation.

5. Educational Loan (E. L.)
For pursuing higher education in India and abroad, we provide loan facility to
the student for a courses for a courses of 5 year (like MBA, MCA, LLB, MBBS,
BE.etc.)
Rate of Interest 16.5% (reducing interest)
6. Pigmy Deposit Loan (P. D. L.)
Loan against the Security of Pigmy Deposit are provided for better
convenience to the customers due to their day-to-day transactions.
Rate of Interest 10% (reducing Interest).
7. Vehicle Loan (V. L.)
We provide Spot Loan facility to our customers for purchase of Bike, Scooter,
Auto-Rickshaw, Car, Truck, JCB etc., with easy documentations.
On road 75% loan 30 to 60 Easy Installments
84 Installments for Four Wheelers 25% down payment
Rate of Interest 13.90% (reducing interest) for new vehicle
Rate of Interest 17% interest for second hand vehicle of below 3 Years
8. House Appliance Loan (H. A. L.)
For purchase of house appliance like T.V., Refrigerator, Furnitures, Washing

Machine etc., we provide easy monthly repayable loan facility.
9. Solar Loan (S. L.)
For solar water heater and lighting system, we provide loan facility with easy
installments.

10. Wedding Loan (W. L.)
To ensure that all the arrangements are perfect for the wedding, we provide
easy monthly repayable loan facility up to Rs. 5 lakhs.
11. Over Draft Loan (O. D.)
To facilitate smooth functioning and hassle free transaction to business and

traders, we provide over draft loan facility.
Rate of Interest 17% (reducing interest) for loan up to Rs. 4.99 lakhs.
Rate of Interest 17.5% (reducing interest) above Rs. 5 lakhs.
12. Deposit Loan (D. L.)
This loan is given against value of term deposit up to the extent of 75%.
Rate of Interest F. D. R. + 2% (reducing interest)
(F. D. R. = Fixed Deposit Rate of Interest)
VALUE ADDED SERVICES
1. E Stamping
E-stamping is a computer based application and a secured way of paying Non-

Judicial stamp duty to the Government. Bond Papers are required for various purposes
i.e. registration, agreement, court cases etc. are issued with the permission from
Central Government are available at our branches.
2. RTGS / NEFT
National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement
(RTGS) allow individuals, companies and firms to transfer funds from one bank to
another. These facilities can only be used for transferring money within the country.
These are made easy in less time and at reasonable charges.

3. Bus Ticket Booking
Bus Ticket booking facility offers an online booking system on all the routes
across India. Without any hassles the customer can walk in with his travel destination
and walk out with his tickets. This facility is available from our designated branches.
4. Pan Card Facility
Permanent Account Number (PAN) is the identifier of Indian income tax

payers. It is issued by the Indian Income Tax Department under the supervision of the
Central Board for Direct Taxes (CBDT) and it also serves as an important proof of
identification. These cards are availed in our branches at minimum charges.
5. Health Card Facility
Father Muller Health Card (Father Muller Hospital, Mangalore) and Manipal
Arogya Card (KMC Hospitals, Manipal and Mangalore) services can be now availed
at discounted rate with the help of this card.
Yashasvini Scheme: The Scheme introduced by the State Government

offering a low priced product for a wide range of surgical covering nearly 823 defined
surgical procedures to the farmer and their family members is made available at our
Branches.
6. Money Transfer Service
Transfer of money from one place to another are made simpler at our Branches
through these services:
Western Union Money Transfer
Money Gram Money Transfer
Royal Money Global Money Transfer

Trans-Fast X Press Money
7. Gold Coin Facility
Milagres Co-operative is in collaboration with Joy Allukas to provide gold

coin purchase facility to our esteemed customers. Round shaped customized gold

coins in denomination of 5 Gms, 8 Gms, 10 Gms bearing Joy Allukas Logo, coin
denomination on one side and pictures of goddess Lakshmi, Mother Mary, Lord
Ganesha etc. on another side.
8. Life Insurance
Life insurance is a contract that pledges payment of an amount to the person

assured (or his nominee) on the happening of the event insured against.
General Insurance: This service is another tool through which we help our
customers to safeguard their lives and their vehicles through various available
schemes. One of the main tasks is to convince the customers who already have done
their Vehicle Insurance from other companies, to do their renewals from our Co-
operative.
a) Vehicle Insurance
Till date vehicle insurance is done only for our co-operatives vehicle loan
customer. This segment can be widened by approaching public vehicle owners. Also
other customers must be approached for getting their vehicle insured and renewals
done from Oriental Insurance through our Co-operative.
b) Mediclaim Policy
Mediclaim Policy which offers various benefits to well to do customers at the

time of any tragedy or health crisis. Upper to Medium class people must be
approached for getting insured under this protection blanket. This policy covers entire
family. Hospitalization charges can also be claimed by furnishing the bills and other
expense details.
c) Shopkeeper Insurance Policy
This policy offers various benefits to the shopkeeper at the time of any
uncertainties such as fire, theft etc. So you need to approach the shopkeeper for this
insurance policy on the basis on their stocks.

PART B
PROFILE OF SAGAR
LOCATION
Sagar is a city located in the Indian state of Karnataka and it is also a sub
divisional and a taluk headquarters. Located in the Western Ghats range, it is known
for its proximity to Jog Falls and to the historical places of Ikkeri, Keladi and
Varadamoola. The river Varada originates near Sagar. Sagar subdivision consists of
Sagar, Soraba, Hosanagara and Shikaripura taluks.
CITY MUNICIPAL COUNCIL
Sagar city is one of the 74 Karnataka Municipal Reforms Project (KMRP)

City in Karnataka. The website of this city was launched on August 2007. Sagar ULB
was started in 1931 and became City Municipal Council (CMC) grade two in the year
2007. The ULB consist of 31 wards with the respective number of councilors. The
population of the city was 50,115 as per the 2001 census and total area is 19.21
K.M.square. The population of the city was 64,550 as per the 2011 census and total
area is 19.71 K.M.square.
ETYMOLOGY
Sagar derives its name from Sadashiva Sagar, which is a lake. Sadashiva
Nayaka, ruler of Keladi dynasty built a lake in between Keladi and Ikkeri. Sadashiva
Sagar is now called Ganapathi Kere (Ganapathi Lake). It is a sub divisional
headquarters headed by a sub divisional magistrate.
ECONOMY
The economy of Sagar is mainly driven by areca nut (betel nut), paddy, spice
and forest products trade. Betel nut is the major cash crop grown in the area. Along
with areca nut, spices like pepper, clove, cinnamon, nutmeg and cocoa are grown. The
economy of the city is highly volatile and is dependent on the variation in the pricing
of these agricultural products. Sagar APMC is one of the main market for areca nut in
Karnataka.

Sagar has a relatively high number of Gudigars families that for generations
have been engaged in sandalwood and ivory carving. The Gudigar men make idols,
figurines and knickknacks like penholders, agarbathi stands, cuff links, photo frames
and paper clips; the women are adept at making garlands and wreaths out of thin
layers of scraped sandalwood.
DEMOGRAPHICS
At the 2001 census, Sagar had a population of 50,115. Males constituted 50%
of the population and females 50%. Sagar had an average literacy rate of 79%, higher
than the national average of 59.5%: male literacy was 82% and female literacy was
75%. In Sagar, 11% of the population was under 6 years of age. At the 2011 census its
population exceeded 64,550.
TRANSPORT
By Road - From the state capital Bangalore, Sagar can be reached by road
through NH-69. (via Tumkur, Arsikere, Kadur, Tarikere and Shivamogga) KSRTC,
the Karnataka State Road Transport Corporation, runs several buses from Bangalore,
including Hitech Volvo and night services. Sagar is around 360 km (224 mi) by road
from Bangalore. From coastal side, Sagar is accessible by bus. This route passes
through Agumbe Ghat or Hulikal Ghat roads. Sagar is better connected with roads
from all directions and it is an important bus junction. Bus service is provided by
private bus operators like Prakash travels, Sri manjunath transport, Sri gajanana and
few more and KSRTC runs buses that connect Sagar to other places in Karnataka and
a few buses to other states. Sagar is well connected by road with Shimoga, Bangalore,
Mangalore, Hubli, Haveri, Sirsi, Shikaripur, Soraba, Hirekerur, Hanagal, Karwar,
Belgaum, Ranebennur, Honnali, Davanagere, Hosanagar, Udupi, Honnavar, Bhatkal
and other major cities. From November 2013 KSRTC introduced city buses in Sagar
city.
By Railway Sagar has its own railway station. The train station is known as
Sagar Jambagaru and there are trains that connect Sagar with Bangalore and Mysore
and a passenger train between Shimoga to Talguppa passes through Sagar.

By Air - The nearest airport is Hubli Airport, which is about 159 km from
Sagar and the nearest international airport is Bangalore International Airport.
RELIGION
The majority of people in Sagar are Havyaka Brahmins and Ediga. Others are
Vokkaliga, Achars, Charody, Mestha, Gaud Saraswat Brahmins, Madiwalas,
Lingayats, Christians, Jains, Kurubas, Daivajnas, Muslims, Marathas, (Namadev-
simpi, Bhavsar) and other sub-castes. The city has Hindu temples, mosque, Jain
basadis and churches. Apart from a few communal clashes in the early 2000s, the city
is known for its communal harmony.
IRRIGATION
The main sources of irrigation in the taluk are canals, tanks, wells, bore-wells,
lift irrigation, pond and other sources. There are about 53 hectors irrigated through
canals, 7651 hectors through tanks, 1438 hectors through wells, 200 hectors through
bore-wells, 512 hectors through life irrigation and 2537 hectors through other sources.
The main rivers flowing over Sagar taluk are Sharavathi and Varada.
EDUCATION
The literacy rate of the taluk is 78% of which rural literacy rate is 73% and
urban literacy rate is 86% and the female literacy rate is 69%.
There are 355 primary schools, 38 high schools, 12 pre-university colleges, 3

degree collages, one nursing college and two post-graduation centres.
RARE DISORDERS
Handigodu Syndrome: Handigodu Joint Disease (HJD) is a familial skeletal

disorder. Handigodu, near Sagar is one of only two places in the world where this
disorder is to be found the other being northern Zululand, South Africa. Severe
precocious, progressive degenerative osteoarthropathy causes market physical
handicap by adulthood. The clinical and radiological manifestations are very similar
to MJD (Mseleni Joint Disease) and they are sometimes believed to be the same
entity.

Kyasanur Forest Disease: Kyasanur forest disease also known as Monkey

Disease is a rare endemic tick-borne viral hemorrhagic fever which has first noticed in
Kyasanur Village near Soraba.
TOURISM
Sagar is surrounded by places of historical importance and natural beauty. One

can find these places with the help of milestones and hoardings which are usually in
Kannada and English.
NATURE TOURISM
HONNEMARADU:
Honnemaradu is situated on the banks of the backwaters of the Sharavati

River. A big water mass extends up to the Chakra dam. It is about 35 km from Sagar
City towards Jog and 10 km from Talguppa. Indian Institute For Adventure
Application is a training school situated here which uses adventure as a platform for
learning.
HOLEBAGILU
Holebagilu is situated on the banks of the Sharavati River about 30 km from

Sagar. One has to take a diversion from B. H. Road towards Ikkeri Road to get there.
The Sharavati backwaters of Linganamakki Dam has submerged acres of land. It is a
place of natural beauty. It is in Kolur Grama Panchayat limits. One has to take a
flatboat to get across the backwaters to reach the other side where Sigandooru is.
LINGANAMAKKI DAM
Linganamakki Dam is built across the Sharavati River and is 6 km from Jog
Falls in Sagar taluk. It is the main feeder reservoir for the Mahatma Gandhi hydro-
electric project. It has two power generating units of 27.5 MW.
JOG FALLS:
The world famous Jog Falls is in Sagar taluk. It is approximately 30 km by

National Highway 206. Private and Government bus will available in all time for the
tourist.

DABBE FALLS
Dabbe Falls is located near Hosagadde in Sagar taluk. On the road from Sagar
to Bhatkal, Hosagadde lies about 20 km from the town of Kargal. From Hosagadde a
walk of 6.8 km into the forest leads to Dabbe Falls.
PLACES OF WORSHIP
MARIKAMBA TEMPLE
The Marikamba Temple is located in Sagar City, in the Indian state of

Karnataka. It features the image of the goddess Marikamba, a form of Durga or
Parvati. The temple was built in the centre of the city during the reign of Venkatappa
Nayak who ruled over Keladi and Ikkeri kingdom during the 16 th century. Marikamba
was the family deity of the Nayaka dynasty.
KELADI
A Shiva temple of historical importance is located 6 km from the city. One has
to take a diversion at Sorab road. There is a museum containing old manuscripts
written during the Keladi dynasty.
SIGANDOORU
Sigandooru is a holy place of Goddess Chamundeshwari. A large temple of

Goddess Chamundeshwari is here. This Goddess is a highly believed deity in Sagar
and the surrounding taluks as a protector against theft and robbery. Coupons for entry
will be distributed on first-come, first-served basis.
VARADAPURA (VARADAHALLI/VADDALLI)
This place is 6 km from the city where one has to take a diversion from Jog
road soon after the end of the city limits. It is famous for the Samadhi of his holiness
Sri Sridhara Swami who was among the great saints of 20th century.
IKKERI
This place is of historic importance due to the presence of a temple dedicated

to Lord Shiva. One has to take a diversion at B. H. Road and travel 6 km.

KALASI
This is another historically important place with a temple dedicated to Lord

Shiva. It is 8 km from the city and one has to travel along Soraba Road for 6 km and
take a diversion.
VARADAMOOLA
Varadamoola is 6 km from Sagar city. River Varada originates at this place.

Varada flows through the town of Banavasi before joining Tungabhadra.
SHETTISARA
This place has a Shani temple and Laxminarayana temple. In Shaneshwara

temple it is claimed God will come on Human body (citation needed).
NOTABLE PERSONS FROM SAGAR TALUK
Raghaveshwara Bharathi Shri Ramachandrapura Mutt 36th Pontiff and Guru of

Havyakas.
K. V. Subbanna Ramon Magsaysay Award, Sangeet Natak Academy Award
and Sahitya Academy Award Winner.
Shantaveri Gopala Gowda Socialist politician who was thrice elected to
Karnataka Lokasabha.
Diganth Indian film actor and a former model.
Bharat Chipli Indian cricketer who plays for Karnataka in first-class cricket.
Arun Sagar Indian film actor, art director, comedian and the Runner of
Kannada Bigboss in the year 2013.
Norbert Dsouza Na Dsouza Novelist and writer in kannada language
(Dweepa, Kadina Benki are famous).
Kagodu Thimmappa Politician and former Vidhanasabha Speaker of
Karnataka.

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
AN ANALYSIS
INTERPRETATION
GRAPHICAL REPRESENTATION
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION
This chapter owes much to the Primary Data collected in field survey. The
purpose of this chapter is to study the Customer Satisfaction towards Service of
St.Milagres Credit Souhardha Co-operative Ltd.
Table 4.1 Age wise classification of respondents
Sl. No. Age No. of Respondents Percentage

1 20-30 16 32
2 30-40 15 30
3 40-50 13 26
4 50 and above 6 12
Total 50 100
Source: Field Survey
The above table reveals 32% of Respondents are between 20 to 30 years age,
30% of Respondents are between 30 to 40 years age, 26% of Respondents are
between 40 to 50 years and 12% of Respondents are 50 and above. It shows the most
of the Respondents are between 20 to 30 years.
35
30
25
20
No. of Respondents
15 Percentage
10
0
20-30 30-40 40-50 50 and above
Graph 4.1: Graphical representation of Age wise classification of Respondents
Table 4.2
Male and Female composition of Respondents
Sl. No. Gender No. of Respondents Percentage

1 Male 32 64
2 Female 18 36

Total 50 100
The above table shows 64% of Respondents are male and 36% of Respondents
are female. It shows the male respondents are more than the female respondents.
120
100
80
60 Percentage
No. of Respondents
40
20
0
Male Female
Graph 4.2: Graphical representation of gender wise classification of Respondents
Table 4.3
Classification of Marital Status of Respondents
Sl. No. Marital Status No. of Respondents Percentage

1 Married 29 58
2 Unmarried 21 42
Total 50 100

The table shows 58% of Respondents are married and 42% of Respondents are
unmarried.
It shows the married respondents are more than the unmarried respondents.
60
50
40
No. of Respondents
30
Percentage
20
10
0
Married Unmarried
Graph 4.3: Graphical representation of marital status of respondents
Table 4.4
Qualification wise classification of Respondents
Sl. No. Qualification No. of Respondents Percentage

1 SSLC 9 18
2 PUC 18 36
3 Graduates 15 30
4 Post Graduates 8 16

Total 50 100
The above table reveals that the 18% of Respondents are SSLC holders, 36%
of Respondents are PUC holders, 30% of Respondents are Graduate holders and 16%
of Respondents are Post Graduate holders.
It shows the majority of the Respondents are completed PUC.
40
35
30
25
20
15 No. of Respondents
10 Percentage
5
0
LC
es
es
PU
at
at
SS
du
du
ra
ra
G
G
st
Po
Graph 4.4: Graphical representation of Qualification of respondents
Table 4.5
Income wise classification of Respondents
Sl. No. Income No. of Respondents Percentage

1 Below 5,000 8 16
2 5,000-10,000 6 12
3 10,000-15,000 13 26

4 15,000-20,000 14 28
5 20,000 and above 9 18
Total 50 100
The above data reveals 16% of Respondents are Below 5,000 income gainer,
12% of Respondents are 5,000 to 10,000 income gainer, 26% of Respondents are
10,000 to 15,000 income gainer, 28% of Respondents are 15,000 to 20,000 income
gainer and above 20,000 income is gained by 18% of Respondents.
45
40
35
30
25
20
15 Percentage
5
0
0
0
00
e
ov
00
00
00
,0
ab
0,
5,
5,
10
-1
-2
w
d
0-
00
00
lo
an
00
Be
,0
,0
00
5,
10
15
,0
20
Graph 4.5: Graphical representation of Income of Respondents
Table 4.6
Occupation wise distribution of Respondents

Sl. No. Occupation No. of Respondents Percentage

1 Employee 17 34
2 Agriculture 9 18
3 Business 14 28
4 Others 10 20
Total 50 100
The table reveals that the 34% of Respondents are employees, 18% of
Respondents are agriculturists, 28% of Respondents are business and 20% 0f
Respondents are others.
It shows the majority numbers of respondents are employees.
35
30
25
20
Percentage
10
0 Percentage
No. of Respondents
ee
re
oy
ss
tu
s
pl
ne
ul
er
Em
ric
si
th
Bu
Ag
Graph 4.6: Graphical representation of Occupation wise classification of

Respondents
Table 4.7
Classification of Respondents on the basis of how to know about the Society
Sl. No. Source No. of Respondents Percentage

1 News paper 8 16
2 Magazines 7 14
3 Friends 26 52
4 Others 9 18
Total 50 100
The above table reveals that the 16% of respondents are know through News
paper, 14% of respondents are know through Magazines, 52% of respondents area
know through Friends and 18% of respondents are know through others.
The majority of the respondents are known about this society through Friends.
60
50
40
Percentage
20
10
0
News paper Magazines Friends Others
Graph 4.7: Graphical representation of classification of respondents on the basis

of how to know about the society.
Table 4.8
Classification of Respondents on the basis of deposit of money
Sl. No. Opinion No. of Respondents Percentage

1 Yes 34 68
2 No 16 32

Total 50 100
The above table shows that the 68% of Respondents are deposits their money
and 32% of Respondents are not deposit their money in this institution.
The majority numbers of respondents are deposit their money in this

institution.
120
100
80
Percentage
40
20
0
Yes No
Graph 4.8: Graphical representation of classification of respondents on the basis

of deposit of money
Table 4.9
Classification of type of Deposit account
Sl. No. Type of Account No. of Respondents Percentage

1 Fixed Account 9 26.47
2 Savings Account 11 32.35
3 Recurring Account 14 41.18

Total 34 100
The above table shows that the 26.47% o respondents are deposit their money
in Fixed Account, 32.35% of respondents are deposit their money in Savings Account
and 41.18% of respondents are deposit their money in Recurring Account.
It shows the majority of the respondents are deposit their money in Recurring
Account.
45
40
35
30
25
20
15
5 Percentage
0 Percentage
No. of Respondents
t
un
t
un
co
t
un
co
Ac
co
Ac
ed
Ac
s
Fix
ng
ng
vi
rri
Sa
cu
Re
Graph 4.9: Graphical representation of classification of type of Deposit Account
Table 4.10
Classification of Respondents on the basis of getting interest for the deposits
Sl. No. Interest Rate No. of Respondents Percentage

1 Below 5% 11 32.35
2 5%-10% 14 41.18
3 10%-15% 9 26.47
Total 34 100

The above table reveals that the 32.35% of Respondents are getting below 5%
interest, 41.18% of Respondents are getting 5%-10% interest and 26.47% of
Respondents are getting 10%-15% rate of interest for their deposits.
It shows the majority of the respondents are getting 5% to 10% interest rate for
their deposits.
45
40
35
30
25
No. of Respondents
20 Percentage
15
10
0
Below 5% 5%-10% 10%-15%
Graph 4.10: Graphical representation of classification of respondents on the

basis of getting interest for deposits
Table 4.11
Classification of Respondents on the basis of prefer this institution
Sl. No. Prefer Factor No. of Respondents Percentage

1 Interest Rate 5 10
2 Good Service 15 30
3 Loan Given 20 40
4 Other Facility 10 20

Total 50 100
The above table reveals that the 10% of respondents are prefer Interest rate,
30% of respondents are prefer Good service, 40% respondents are prefer Loan given
and 20% of respondents are prefer Other facility.
70
60
50
40
No. of Respondents
30 Percentage
20
10
Percentage
0
No. of Respondents
Yes
No

basis of prefer this institution
Table 4.12
Classification of Respondents on the basis of Behavior of employees
Sl. No. Behavior Factor No. of Respondents Percentage

1 Very Good 30 60
2 Good 16 32
3 Not Bad 4 8
4 Bad 0 0
Total 50 100

The above table shows that the 60% of respondents are feel that behavior is
Very good, 32% of respondents are feel that behavior is good and 8% of respondents
are feel that behavior of employees is not bad.
It shows the overall behavior of the employees is very good in this institution.
80
70
60
50
40
20 Percentage
s
nt
de
10
on
sp
Re
0
of
o.
N
le
r
ab
pe
h
on
ig
h
ea
ig
H
as
Ch
H
Re
ry
Ve

basis of Behavior of Employees
Table 4.13
Classification of Respondents on the basis of Loan Taken

1 Yes 34 68
2 No 16 32
Total 50 100
The above table shows that the 68% of respondents are loan taken and 32% of
respondents are not taken loan in this institution.

It shows the loan taken respondents are more than the loan not taken
respondents.
70
60
50
40 Yes
30 No
20
10 No
No. of Respondents Yes
Percentage
Graph 4.13: Graphical representation of Loan Taken by the Respondents
Table 4.14
Classification of Respondents on the basis of Type of Loan
Sl. No. Type of Loan No. of Respondents Percentage

1 Gold Loan 9 26.47
2 Vehicle Loan 14 41.18
3 Mortgage Loan 0 00.00
4 Home Loan 11 32.35
Total 34 100

The above table reveals that the 26.47% of respondents are taken Gold loan,
41.18% of respondents are taken Vehicle loan and 32.35% of respondents are taken
Home loan.
The Vehicle loan is higher that is 41.48%, when compared to rest of the loan.
70
60
50
40
Percentage
20
s
nt
de
10 on
sp
Re
0
of
Yes
o.
N
No
Graph 4.14: Graphical representation of Type of Loan
Table 4.15
Classification of amount of Loan taken by the Respondents
Sl. No. Loan Amount No. of Respondents Percentage

1 25,000-50,000 3 8.82
2 50,000-1,00,000 13 38.24
3 1,00,000-2,00,000 8 23.53
4 Above 2,00,000 10 29.41
Total 34 100

The above table reveals that the 8.82% of respondents are borrow loan
between 25,000 to 50,000, 38.24% of respondents are borrow loan between 50,000 to
1,00,000, 23.53% of respondents are borrow loan between 1,00,000 to 2,00,000 and
29.41% of respondents are borrow loan more than 2,00,000.
It shows 50,000 to 1,00,000 amount of loan taken by the respondents is high.
70
60
50
40
No. of Respondents
30 Percentage
20
10
Percentage
0
No. of Respondents
Yes
No
Graph 4.15: Graphical representation of Loan taken by the respondents
Table 4.16
Classification of Interest charged against Loan

1 Reasonable 1 2.94
2 Cheaper 1 2.94
3 High 26 76.47
4 Very High 6 17.65
Total 34 100

The above table reveals that the 2.94% of respondents are feel that interest
charged against loan are reasonable and cheaper, 76.47% of respondents are feel that
interest charged against loan are high and 17.65% of respondents are feel that interest
charged against loan are very high.
80
70
60
50
40
20 Percentage
10
0 Percentage
No. of Respondents
le
r
ab
pe
h
on
ig
h
ea
ig
H
as
Ch
H
Re
ry
Ve
Graph 4.16: Graphical representation of Interest charged against Loan
Table 4.17
Classification of Periodicity of Sanctioning the Loan
Sl. No. Periodicity No. of Respondents Percentage

1 Within 1 day 7 20.59
2 2-5 days 22 64.71
3 More than 5 days 5 14.70
Total 34 100

The above table shows that the 20.59% of borrowers sanctioning the loan
within 1 day, 64.71% of borrowers sanctioning the loan between 2 to 5 days and
14.70% of borrowers sanctioning the loan more than 5 days.
100
90
80
70
60 Percentage
40
30
20
10
0
Yes No
Graph 4.17: Graphical representation of Periodicity of Sanctioning the Loan
Table 4.18
Classification of Procedure to Sanctioning Loan
Sl. No. Procedure No. of Respondents Percentage

1 Simple 7 20.59
2 Difficult 13 38.23
3 Not so Difficult 14 41.18
Total 34 100

The above table shows that the out of 34 borrowers, 7 borrowers are consider
that the loan sanctioning procedure is simple, 13 borrowers are consider that the loan
sanctioning procedure is difficult and remain 14 borrowers are consider that the loan
sanctioning procedure is not so difficult.
70
60
50
40
No. of Respondents
30 Percentage
20
10
Percentage
0
No. of Respondents
Yes
No
Graph 4.18: Graphical representation of Procedure to Sanction Loan
Table 4.19
Classification of Money Transfer Service used by Respondents

1 Yes 18 36
2 No 32 64
Total 50 100

The above table reveals that the 36% of respondents are used the
money transfer service and 64% of respondents are not used the money transfer
service.
70
60
50
40 Yes
No
30
20
10
0
No. of Respondents Percentage
Graph 4.19: Graphical representation of Money Transfer Service used by

Respondents
Table 4.20
Classification of duration of Money Transfer Service
Sl. No. Duration No. of Respondents Percentage

1 Within 30 minutes 6 33.33
2 30 minutes-1 hour 9 50.00
3 More than 1 hour 3 16.67
Total 18 100
The above table reveals that the 33.33% of respondents are transfer
their money within 30 minutes, 50.00% of respondents are transfer their money 30

minutes to 1 hour and 16.67% of respondents are transfer their money more than 1
hour.
50
45
40
35
30
Percentage
20
15
10
0
Very Good Good Average
Graph 4.20: Graphical representation of Duration of Money Transfer Service
Table 4.21
Classification of Health Card Facility used by Respondents

1 Yes 16 32
2 No 34 68
Total 50 100
The above data reveals that the 32% of respondents are used and 68% of
respondents are not used the Health Card Facility.

50
45
40
35
30
25
Very Good
20
Good
15
10
5
0
No. of Respondents Good
Very Good
Percentage
Graph 4.21: Graphical representation of Health Card Facility used by the

respondents
Table 4.22
Classification of respondents Opinion towards Working Management

1 Very Good 19 38
2 Good 27 54
3 Bad 4 8
Total 50 100
The above table shows that the 38% of respondents are have very good
opinion towards working management, 54% of respondents are have good opinion

towards working management and 8% of respondents are have bad opinion towards
working management of this institution.
50
45
40
35
30
20 Percentage
15
10
5
0 Percentage
Very Good No. of Respondents
Good
Average
Graph 4.22: Graphical representation of respondents Opinion towards Working

Management
Table 4.23
Classification of Service Provided by the Society
Sl. No. Performance No. of Respondents Percentage

1 Very Good 23 46
2 Good 19 38
3 Average 8 16
Total 50 100
The above table reveals that the 46% of respondents are opinioned they have
given very good service to the customers, 38% of respondents are opinioned they

have given good service to the customers and 16% of respondents are opinioned
they have given average service to the customers.
50
45
40
35
30 Performance
20 Percentage
15
10
5 Percentage
1 Performance
2
3
Graph 4.23: Graphical representation of Service provided by the Society

CHAPTER 5
SUMMARY OF FINDINGS, SUGGESTIONS AND

CONCLUSIONS
SUMMARY OF FINDINGS
SUGGESTION
CONCLUSION
CHAPTER 5
SUMMARY OF FINDINGS, SUGGESTIONS AND

CONCLUSIONS
This chapter deals with the summary of findings from the analysis of field
summary data, suggestion for findings and conclusion is drawn at the end.
FINDINGS

1. The Co-operative Society constitute an important segment of the Indian

banking system and have traditionally played an important role in creating
banking habits among the lower and middle income groups and in
strengthening the rural credit system.
2. Out of 50 respondents, Male respondents are more than Female respondents.
3. Majority of the Age Group of the respondents between 20 to 30 years.
4. The majority of the Marital Status of the respondents is Married that means
58% of the respondents are Married.
5. The majority of the respondents educational qualification is Graduates,
majority of the respondents means 36%.
6. Most of the respondents are have 15,000 to 20,000 Annual Income.
7. The majority of the respondents occupation is Employee.
8. Majority of the respondents have Recurring Deposit in this society.
9. Out of the 34 respondents, 19 respondents are satisfied with the Interest pay on
Deposits.
10. Majority of respondents prefer this institution for Loan Given.
11. Out of 50 respondents, 34 respondents are taken the Loan.
12. The majority of the respondents are taken the Loan for the purpose of
Vehicles.
13. The majority of the respondents pay 10% to 15% Interest on Loan as per
survey.
14. The majority of the respondents have taken loan Rs. 50,000 to Rs. 1,00,000. It
is evident from the survey.
15. It was observed that in majority of Interest charged against Loan is High.
16. Loan Sanction procedure is not so difficult.
17. Out of 34 respondents, 19 respondents are get loan within 2 to 5 days.
18. 46% of respondents opinioned as very good with the Service if the Society.
19. The society mobilizes the deposit is various types of Deposit accounts like
Savings Bank account, Fixed Deposit account, Recurring Deposit account etc.
20. This data is only related to Sagar.
SUGGESTIONS
1. Research revealed that 64% of the respondents are Male and remaining 36%
of the respondents are Female, so society needs to concentrate on Female
category.
2. The ratio of Female respondents of participation in Co-operative Ltd should
increase.
3. Loans interest should be decrease.
4. Loan sanction time should reduce.

5. The society is concentrate much on rural people and provides credit facility to
them.
6. Encourage the customer to invest in Society.
7. Encourage the customer to open Fixed Deposit account.
8. To encourage other people to open an account in St.Milagres.
9. To establish the service to rural area and branch to rural area.
10. Rate of Interest for Deposits should increase.
11. Research revealed 34% of respondents are employee so company needs to
target them to enhance its growth.
12. The society has to facilitate the Special type of loans to the customers.
13. Radio, Television etc. have to be used for making the people conscious about
the utility of the Co-operative movement.
14. Research revealed that 29.41% of respondents have taken loan amount in the
range of Rs. 2,00,000 and above. Society needs to improve this segment
because of its more profitability.
15. Co-operative Society should focus their operations in such a way that would
create greater confidence in people in respect of quality of banking services.
16. From the research we can conclude 76.47% of the respondents interested to
obtain loan at low interest rate. So society needs to design its interest rate
keeping this in mind.
17. Co-operative institution is dual control has to be eliminated. Because to avoid
systematic risk to the banking sector. It is essential to have a uniform
authority.
CONCLUSION
Co-operative Ltd has played a vital role in resources mobilization and its
efficient allocation in different sources of investment. A co-operative ltd is a form of
business organization in which financially weak persons voluntary associated together
as human beings on the basis of equality of opportunity and control, equality of
distribution of profits and mutuality for the promotion of their interest. The co-
operative ltd has given efficient services to the customers. It also plays the significant
role in fulfilling the financial needs of people of Sagar region.
This study was undertaken to know the customer satisfaction towards the
service of the Co-operative society. This study helped me in understanding how a co-
operative society works and how it design various plan to satisfy and attract customer.

This project work gave me a wonderful experience with regard to the company
exposure and inns and outs of doing a systematic research. And it also gave me a
good knowledge of company details, its various activities and different roles played
by various departments of the handling customers and way of obtaining information
through them.
This help me in increasing my interpersonal skills like communication,

observation and listening skills and this project work also helped in identification of
problems and solutions for it.
Finally, I would like to conclude by saying that St. Milagres Credit Souhardha
Co-operative Ltd is the leading financial service provides in the Taluk and the
customers trust the company and are satisfied.
ANNEXURE

Annexure-1
QUESTIONNAIRE
Dear Respondents,
I am Megha S. A. the student of Post Graduate (M.com) in Smt. Indira Gandhi

Govt. First Grade Womens College, Sagar.
May I ask you a favor that takes a only a few minutes of your time?
As a part of my study, I have undertaken the project work in Customer Satisfaction

towards the Service of St. Milagres Credit Souhardha Co-operative Ltd- with special
reference to Sagar Branch.
We solicit your Co-operation in completing the questions, your reply will be

kept strictly confidential. Of course and the result of the study will be shown in
statistical form only.
1. Name
2. Address
3. Age a) 20- 30 ( ) b) 30-40 ( )
c) 40-50 ( ) d) 50 and Above ( )

4. Gender a) Male ( ) b) Female ( )
5. Marital Status a) Married ( ) b) Unmarried ( )
6. Qualification a) SSLC ( ) b) PUC ( )
c) Graduates ( ) d) Post- Graduates ( )
7. Income (Monthly)
a) Below 5000 ( ) b) 5000 10,000 ( )
c) 10,000 15,000 ( ) d) 15,000 20,000 ( )
e) 20,000 and Above ( )
8. Occupation a) Employee ( ) b) Agriculture ( )
c) Business ( ) d) Others ( )
9. How do you know about this co-operative society?
a) News Paper ( ) b) Magazines ( )
c) Friends ( ) d) Others ( )
10. Do you deposit your money in this institution?
a) Yes ( ) b) No ( )
11. If yes which type of Account you are having?
a) Fixed Deposits ( ) b) Savings Deposits ( )
c) Recurring Deposits ( )
12. How much interest you are getting from deposits?
a) Below 5% ( ) b) 5%-10% ( )
c) 10%-15% ( )
13. Are you satisfied with the interest rate?
a) Yes ( ) b) No ( )

14. Why you prefer this institution?
a) Interest Rate ( ) b) Good Service ( )
c) Loan given ( ) d) Others ( )
15. How you feel the behavior of the employees in this institution?
a) Very Good ( ) b) Good ( )
c) Not Bad ( ) d) Bad ( )
16. Do you have taken loan from this institution?
a) Yes ( ) b) No ( )
17.If yes, which type of loan you are taken?
a) Gold Loan ( ) b) Vehicle Loan ( )
c) Mortgage Loan ( ) d) Home Loan ( )
18. How much interest is charged for your loan?
a) Below 5% ( ) b) 5% - 10% ( )
c) 10% - 15% ( ) d) Above 15% ( )
19. How much loan would you prefer to take from this institution?
a) 25,000 50,000 ( ) b) 50,000 1,00,000 ( )
c) 1,00,000 2,00,000 ( ) d) 2,00,000 and Above ( )
20. How you feel about interest rate on your loan?
a) Very Good ( ) b) Cheaper ( )
c) Higher ( ) d) Very High ( )
21. In how many days you will get loan?
a) Within 1 Day ( ) b) 2 5 Days ( )
c) More than 5 Days ( )

22. The process involved in sanctioning of the loan?
a) Simple ( ) b) Difficult ( )
c) Not so Difficult ( )
23. Do you use Money Transfer Service in this institution?
a) Yes ( ) b) No ( )
24. If yes, it takes how much time?
a) Within 30 minutes ( ) b) 30 minutes to 1 hour ( )
c )More than 1 hour ( )
25. Do you get Health Card Facility from this institution?
a) Yes ( ) b) No ( )
26. If yes, are you satisfied?
a) Yes ( ) b) No ( )
27. What is your opinion about the working and management of this institution?
c) Bad ( )
28. How did you feel about the service of the society?

c) Average ( )
29. Compare to any other financial institution, what qualities you like in this
institution?
a) Interest Rate ( ) b) Repayment of loan ( )
c) Employee behavior ( ) d) Others ( )
30. Any suggestion or comments of this institution?

Thanking You
Place:
Date:

Annexure-2
BIBLIOGRAPHY
BOOKS
1) Prof. K. D. Basava, Principles of Management, Vidyavahini Prakashana,

2010.
2) Philip Kotler, Gary Armstrong, Prafulla Y. Agnihotri, Ehsanul Haque,
Principles of Marketing, Pearson Publication, 2013.
3) H. N. Ramesh, V. Murugaiah, Consumer Behavior (Text and Cases),
College Book House, 2011.
4) Dr. H. L. Varshney, Dr. S. L. Gupta, Marketing Management (Text and
Cases), Sultan Chand and Sons, 2005.
5) C. N. Sontakki, Consumer Behavior, Himalaya Publishing House, 2006.
6) N. K. Sahni, Meenu Gupta, Consumer Behavior, Kalyani Publishers, 2007.
JOURNALS AND MAGAZINES
1) Kumari Pushpa, Co-operative Credit Institutions Since Independence :

Retrospect and Prospect, Indian Co-operative Review, Vol.35, No.2, Oct,
1997, PP. 151-162.
2) Verma S. K., Rural Development through Co-operatives, Kurukshetra,
Vol.47, No.8, May, 1999, PP.29-32 and 38.
3) Katar Singh, The National Policy on Co-operatives A Critical
Appraisal, Kurukshetra, Vol.51, No.6, April, 2003, PP.4-9.
4) Ansari A.A. and Amir Ullah Khan, Agricultural Sector Reforms and the
Role of Co-operatives, Indian Co-operatives Review, Vol.42, No.2, Oct,
2004, PP.143-169.
5) Joel Edwinraj D., Challenges Before Indian Co-operatives, Kisan World,
Vol.31, No.10, Oct, 2004, PP.21-22.
6) Jain N. K., Co-operatives at Cross Roads, Indian Co-operative Review,
Vol.42, No.3, Jan, 2005, PP.272-279.
7) Bhole L. M., The Role of Co-operatives in Socio-Economic Development
in India A Review, IASSI Quarterly, Vol.23, No.3, Jan-Mar, 2005, PP.107-
126.
8) Avinash V. Raikar, Co-operative Credit Institutions in India : An
Overview, Indian Co-operative Review, Vol.44, No.1, July, 2006, PP.1-20.

9) Banishree Das, Nirod Kumar Palai and Kumar Das, Problems and
Prospects of the Co-operative Movement in India under the Globalization
Regime, 2006, PP.1-14.
WEBLIOGRAPHY
1) http://www.yourarticlelibrary.com
2) http://www.wirc-icai.org/material
3) http://en.wikipedia.org/wiki
4) http://www.publishyourarticles.net
5) http://www.preservearticles.com
6) http://bankofinfo.com
7) http://society-politics.blurtit.com
8) http://www.wisenepali.com>Home>Business
9) http://agriinfo.in
10) http://i2bij.blogspot.com
11) http://www.zeepedia.com
12) http://www.investorwords.com
13) http://www.abudhabi.ae
14) http://managementation.com
15) http://shodhaganga.inflibnet.ac.in

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with special reference to Sagar Branch

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

Co-operative societies are one of the forms of business organization. They

Co-operative societies have attempt to balance individuals needs with those of

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

The Co-operative Society is yet another form of business organization. It is

He made an attempt to examine how to co-operatives in India can be made

Kumari Pushpa (1997)

He examined the rural development through co-operatives. He has observed

Satyasai and Badatya (2000)

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

They conducted a study regarding restructuring rural credit co-operative

Katar Singh (2003)

Ansari A. A. and Amir Ullah Khan (2004)

Joel Edvinraj D. (2004)

He examined the challenges before Indian co-operatives. He has observed that

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

In his work entitled The Role of Co-operatives in Socio-Economic

Avinash V. Raikar (2006)

He has analyzed the issues, problems and prospects of Co-operative Credit

Banishree Das, Nirod Kumar Palai and Kumar Das (2006)

In their study on the problems and prospects of the co-operative movement in

Dr. R. Renuka and C. Elamathi (2013)

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

OBJECTIVES OF THE STUDY

METHODOLOGY OF THE STUDY

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

Survey is conducted for 30 respondents in the co-operative society.

STATEMENT OF THE PROBLEM

Co-operative Societies face many challenges and problems; their performance

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

CHAPTER 1 RESEARCH DESIGN

Introduction, review of literature, objectives, methodology, statement of the

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

CHAPTER 2 CO-OPERATIVE SOCIETY

PART A : Co-operative Society

Introduction, origin, meaning and definition, features or principles, objectives,

PART B : Consumer Behavior

Meaning and definition of consumer, rights and responsibilities of consumer.

CHAPTER 3 PROFILE OF THE STUDY

PART A : Society Profile

PART B : Sagar Profile

Location, city municipal council, etymology, economy, demographics,

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

CHAPTER 5 SUMMARY OF FINDINGS, SUGGESTIONS AND

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

CO- OPERATIVE SOCIETY

CO- OPERATIVE SOCIETY

Introduction of the co-operative society

INTRODUCTION OF THE CO-OPERATIVE

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

A co-operative is an autonomous association of people united voluntarily to

Germany the birth place of co-operative credit movement in the world.

ORIGIN OF THE CO-OPERATIVE SOCIETY

In 1844, as Henry David Thoreau was preparing to build a cabin on Walden

Smt. Indira Gandhi Govt. First Grade Womens College, Sagar

Section 4, of the Indian Co-operative Societies Act, 1912

A co-operative society is another means for forming a legal entity to conduct

A co-operative society is a voluntary association of individuals having

MEANING AND DEFINITION OF CO-OPERATIVE SOCIETY

A Co-operative society is an organization, which is service oriented rather than