SUMMER TRAINING PROJECT ON

“COMPARATIVE STUDY AND ANALYSIS ON CAR

LOANS PROVIDED BY PRIVATE BANKS WITH THAT OF
BANK OF BARODA IN NAGAON”

Submitted by
Ritesh Kumar Jain
Submitted to the department of Management Studies

In partial fulfillment of the Requirement for the two year Fulltime

PGDM Course

MAHARISHI ARVIND
INSTITUTE OF SCIENCE & MANAGEMENT
Ambabari Circle, Ambabari, Jaipur -302023(INDIA)

Roll No. Batch Year

3505 2009-2011
 Certificate of Originality

I, Ritesh Kumar Jain, s/o Mr. Raj Kumar Jain, having Roll No 3505 of Batch
2009-2011, do hereby certify and declare that this research report titled
comparative study and analysis of car loan provided by Private banks with
that of Bank of Baroda in Nagaon is the result of my own work. This report
contains no materials or information which has been previously submitted for
any other academic diploma or degree, expect where indicated otherwise.

DATE 26TH JULY 2010 RITESH KUMAR JAIN

Page 2
Page 3
 Approval Page

This report entitled COMPARATIVE STUDY AND ANALYSIS ON CAR

LOANS PROVIDED BY PRIVATE BANKS WITH THAT OF BANK OF
BARODA IN NAGAON prepared and submitted by RITESH KUMAR JAIN
in partial fulfillment of the requirements for the degree of PGDM is hereby
accepted.

Ms. Rubina Sajid

(Associate Professor)

Page 4
 Acknowledgement

I am truly privileged that I got a chance to work in a reputed organization like BANK OF
BARODA. The association with such a focused and growth oriented has left a positive
imprint in my mind. Knowing the functionalities of this bank shown closely has helped me to
develop a positive, professional and honest attitude towards my work. There is no shortcut to
success, but by sincerity and hard work anything is achievable.

Firstly, I am thankful to Mr. P.DEVROY (EX.SNR. BRANCH MANAGER BANK OF

BARODA NAGAON) and Mr. S. Bhattacharjee (SNR. BRANCH MANAGER BANK
OF BARODA NAGAON) who has provided me with an opportunity to do my Summer
Training in this prestigious organization.

I am thankful to Ms. Rubina Sajid (Faculty Guide, MAISM (JAIPUR)) for guiding me in
my work and providing me with valuable information and suggestions.

I would also like to thank the FINANCE DEPARTMENT who has been of great help and
assistance to me during this period that showed their support as and when required. At the
end of the project I feel enriched with the knowledge given to me at Bank of Baroda from
time to time.

I am also thankful to Dr. BHARAT PARASHAR, DIRECTOR MAISM, Dr. A. S.

Bhambra, DEAN MAISM, Dr. Vipin Jain (Head Of Department, MAISM (JAIPUR)), Mr.
Vineet Pant(Placement Coordinator MAISM) for their inspiration, encouragement and
extension of all facilities and support.

Finally, I would like to thank all the people, without whose insights and opinions, this project
would have been impossible.

RITESH KUMAR JAIN

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As we all know that every topic of research has its own importance and it's
slightly tough to gather the information that is required completely for a
particular subject. There are different ways of presenting an idea of your report,
which is made after training. It's obvious that defining a topic and its objective
is not easy, but making the proper start in order to do something, which is of
some use, is different.

The BANK OF BARODA as we all know is a well known Nationalized bank,

which is giving out great performance in this global scenario. Researcher has
completed training in the BANK OF BARODA, NAGAON and learnt many
things, which weren't in his knowledge.

Researcher felt great pleasure working as a trainee with the, BANK OF

BARODA is really awesome working with extra ordinary management. It was a
very knowledgeable experience to me.

The basic aim of the study is to analyze AUTO LOAN of the institute. It aims to
interpret various parts of AUTO LOAN according to the needs and requirement
of the Consumer.

TABLE OF CONTENTS

Page 6
 TOPIC PAGE NO.

1. OBJECTIVE OF STUDY 8

2. INTRODUCTION TO THE PROJECT TOPIC 9

3. INTRODUCTION OF BANK OF BARODA 14

4. BARODA’S CAR LOAN 19

5. INTRODUCTION OF ICICI BANK 24

6. ICICI CAR LOAN 26

7. INTRODUCTION AXIS BANK 30

8. AXIS CAR LOAN 32

9. RESEARCH METHODOLOGY 34

10. LIMITATION OF THE STUDY 36

11. DATA & DATA ANALYSIS 37

12. SWOT ANALYSIS OF BANK OF BARODA’S CAR LOAN 45

13. CONCLUSIONS & SUGGESTIONS 46

14. GLOSSARY 48

15. BIBLIOGRAPHY 50

16. ANNEXURE 51

OBJECTIVE OF THE STUDY

Page 7
The objective of this research is to analyze the car loans with a view to arrive at

the most popular loan schemes offered by banks in NAGAON under the

academic purpose and to conclude from the analysis the best possible bank

which would keep the bank ahead of competition.

The purpose of the study is to find out the critical factors that are essential for a

car loan to become the most favoured scheme in the Nagaon scenario. The

reasons being the features that the scheme provides are not being provided by

many of the banking institutes.

INTRODUCTION TO THE PROJECT PROFILE

COMPARATIVE STUDY AND ANALYSIS ON CAR LOANS PROVIDED

BY PRIVATE BANKS WITH THAT OF BANK OF BARODA IN NAGAON

Page 8
A roof over one’s head and a car standing on the entrance of one’s home count
as the bare necessities of life today. There’s nothing quite like owning a car,
however humble, to give one that warm and glowing feeling. But when buys a
car, one has much more than a feel good purchase in mind. It’s also a crucial
investment decision perhaps one of the important spending decisions of one’s
life. There are ample opportunities today for young salaried investors to plan
their moves early and buy a car at the right time and at the right price. In the
process , not only do they fulfill that cherished dream of owning a car but also
put themselves on the path to acquiring property that would meet the needs and
aspirations of their growing family , even as it leads to wealth creation . Every
individual aspires to own a car of his dream and for this he plough his own fund
or takes the help of the financing companies and institutes to fulfill the dreams
just by paying regular EMI for a stipulated period of time according to one’s
income/salary. There are several players in this field with different schemes to
attract the customers. Some of the major players in this industry in NAGAON
are STATE BANK OF INDIA, BANK OF BARODA, PUNJAB NATIONAL
BANK and many more government banks. The private banks are also engaged
in this business, of which ICICI BANK, AXIS BANK is most preferred ones.
The institute provides the facility on minimum of interest rates on fixed/floating
type .The EMI is set after taking in account the income/salary of the desired
client and time period one decides to pay back the amount (principal +
interest ). The time period can vary from 1year to 7years and the rate of interest
can vary from 9.5% p.a. to 11%p.a. The loan is disbursed to the customers at the
earliest of time according to the fulfillment of the minimum requirement of such
facility; it varies from 2 to 6 days.

These institutes have paved a way to purchase one’s dream car. There are many
cars which are launched and which are going to be launched in the coming
period. In today’s time money can’t come in between you and your dream car.
All one has to do is to select the best financing scheme which suits one’s need.
The list of different cars which are launched and which are going to be launched
this year are tabled below:

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COMPANY NAME MODELS TYPE

Ford Motor Co. Ford Figo Small Car

Chevrolet Cars Chevrolet Cruze Automatic Premium Car

Mercedes Benz Cars Mercedes Benz S-Guard Luxury Car

Mercedes Benz Cars Mercedes Benz E250 Luxury Car

Nissan Motor Co. Ltd Nissan 370Z Premium Car

Volkswagen Volkswagen Phaeton Luxury Car

Maruti Suzuki India Ltd Maruti Suzuki Concept R3 Mid Size Car

Chevrolet Chevrolet Beat Mid Size Car

Toyota Motors Toyota Prado Diesel Sport Utility Vehicle

Tata Motors Tata Motors Sumo Grande MKII Sport Utility Vehicle

Tata Motors Range Rover 2010 Model Sport Utility Vehicle

Honda Motor Co. New Honda CR-V Sport Utility Vehicle

Maruti Suzuki India Ltd New Maruti Suzuki SX4 Premium Car

Tata Motors Tata Indigo Manza Mid Size Car

BMW Cars BMW Z4 Roadster 2009 Luxury Car

Chevrolet Chevrolet Cruze Premium Car

Maruti Suzuki India Ltd Maruti Suzuki Alto Flash Limited Edition Small Car

Maruti Suzuki India Ltd Maruti Suzuki Ritz Mid Size Car

Tata Motors Land Rover FreeLander 2 Sport Utility Vehicle

Tata Motors Nano Small Car

Audi AG Audi A6 Limited Edition Luxury Car

Audi AG Audi Q5 SUV

Audi AG Audi A4 Luxury Car

Fiat India Pvt Ltd Fiat Linea Mid Size Car

Fiat India Pvt Ltd 500 Luxury Car

Ford Motor Co. Ford Ikon Mid Size Car

Fiat India Pvt Ltd Grand Punto Mid Size Car

Honda Motor Co. Honda Jazz Mid Size Car

Honda Motor Co. New Honda City Premium Car

Honda Motor Co. Honda Civic Hybrid Premium Car

Hyundai Motor Co. Hyundai i20 Era Mid Size Car

Hyundai Motor Co. Hyundai i20 Sportz Mid Size Car

Hyundai Motor Co. Hyundai Accent Eco Mid Size Car

Hyundai Motor Co. Hyundai i20 Mid Size Car

Mahindra & Mahindra Ltd. Mahindra Scorpio Automatic SUV

Logan Edge
Mahindra & Mahindra Ltd. Mid Size Car
(Limited Edition)

Mahindra & Mahindra Ltd. Mahindra-Xylo Sport Utility Vehicle

Maruti Suzuki India Ltd New Maruti Suzuki Wagon R Premium Cars

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10
Maruti Suzuki India Ltd New Maruti Suzuki Zen Estilo Mid Size Car

Maruti Suzuki India Ltd Maruti Suzuki Grand Vitara 2.4 Sport Utility Vehicle

Maruti Suzuki India Ltd Maruti A-Star Mid Size Car

Mitsubishi Outlander SUV

Nissan Motor Co. Ltd Nissan GT-R Premium Car

Porsche Porsche Panamera Luxury Car

Rolls Royce Rolls Royce Phantom Coupe Luxury Car

Rolls Royce Rolls Royce Ghost Luxury Car

Skoda Auto India Pvt Ltd. Laura Ambiente Premium Car

Skoda Auto India Pvt Ltd. Skoda Fabia 1.2 MPI Premium Car

Sonalika Rhino RX SUV

Toyota Motors Corolla Altis Premium Car

Toyota Motors Toyota Fortuner SUV

Tata Motors Tata Indigo CS Mid Size Car

Tata Motors Indica Vista Mid Size Car

Volvo New Volvo S80 Luxury Car

Volvo S80 V8 Luxury Car

Volvo XC90 SUV

Volkswagen Volkswagen Polo Premium Car

Volkswagen Jetta Premium Car

Volkswagen Volkswagen Beetle Luxury Car

Volkswagen Volkswagen Touareg Premium Car

The general procedure to get the one’s dream car through finance is exhibited
in the chart below

ENQUIRY

APPLICATION FOR LOAN

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 CREDIT APPRAISAL

INTERVIEW CHECKING WITH GURANTOR VERFICATION WITH THE EMPLOYER

RECOMMENDATION TO SANCTIONING AUTHORITY

SANCTION BY THE MANAGER

DEFER LETTER TO APPLICANT REJECT

APPROVAL GURANTOR

ACCEPTANCE LETTER WITH THE PROCESSING FEES

LEGAL TITLE DOCUMENTS REVIEW

SIGNING LOAN DISBURSEMENT DOCUMENTS

EMI REPAYMENT PREPAYMENT PENALTY CHARGES

LISTED BELOW ARE THE STEPS INVOLVED IN AVAILING A CAR

LOAN FROM A BANK

STEP1 A PERSON APPLIES FOR CAR LOAN .

STEP2 THE EXECUTIVE MEETS THE APPLICANT AND BRIEFS HIM THE ENTIRE LOAN
PROCESS,REQUIREMENTS AND THE VARIOUS OPTIONS AVAILABLE
STEP3 THE APPLICANT CHOOSES A BANK AND HANDS OVER THE INCOME/SALARY DOCUMENTS TO
THE EXECUTIVE.
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STEP4 THE INCOME DOCUMENTS ARE HANDED OVER TO THE BANKING INSTITUTE FOR ELIGIBILITY
AND APPROVAL.
STEP5 THE BANK VERIFIES THE DOCUMENTS AND CHECKS THE REPAYING CAPACITY,SAVING
HABITS,TENURE OF SERVICE ETC. OF THE APPLICANT AND APPROVES THE LOAN AMOUNT.

STEP6 AFTER APPROVAL,AN OFFER LETTER IS GIVEN TO THE APPLICANT BY THE BANK,ALONG WITH
A LIST OF ORIGINAL PROPERTY TITLE DOCUMENTS THAT HAVE TO BE HANDED OVER TO THE
COMPANY.
STEP7 THE APPLICANT GIVES THE ORIGINAL PROPERTY DOCUMENT TO THE COMPANY.

STEP8 THE BANK SCRUTINIZES THE LEGAL AND TECHNICAL ASPECT OF THE ORIGINAL TITLE DOCUMENTS.

STEP9 IF BANK SATISFIED WITH THE DOCUMENTS THEN THE APPLICANT IS CALLED TO SIGN THE LOAN
AGREEMENT.

STEP10 THE LOAN DISBURSEMENT SCHEDULE IS DECIDED BY THE BANK AND IS MAINLY A SINGLE SHOT
PAYMENT.

STEP11 THE APPLICANT GETS THE POSSESSION OF THE PROPERTY (CAR).

STEP12 THE APPLICANT STARTS PAYING THE EMI.

1. BANK OF BARODA – AN INTRODUCTION

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13
 ***********
**************************************************
*
LOGO
Explanation:- Rising sun with the Bank’s Name.
It seems that two birds are flying together
Tag Line :- Banking With Passion
Punch Line :- India’s International Bank

Sri M. D Malaya - Chairman and Managing Director

History of the INSTITUTE

Bank of Baroda was incorporated in 1908 by Maharaj Sayajirao Gaekwad III. It

launched its first branch in 1910 in Ahmedabad. In 1953, its first branches in
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14
Kampala and Mombasa became operational. Its overseas branch in Nairobi was
opened in 1954.

Products & services

Bank of Baroda provides it banking products and services in several categories

like personal, international, business, treasury, corporate and rural. In personal
banking section Bank of Baroda offers products like deposits, debit cards, Gen-
Next, personal banking services, loans, lockers and credit cards.
In business banking sector, Bank of Baroda offers products and services such as
deposits, business banking services, loans and advances and lockers. In
corporate banking section, Bank of Baroda offers products and services like
wholesale banking, loans and advances, deposits and corporate banking
services.
Bank of Baroda operates in 25 countries. Bank of Baroda aims at being a
leading bank that performs at par with international standards. It also looks to
increase value of stakeholders to maximum possible level.

Financials

Sales of Bank of Baroda amounted to $2.48 billion and it earned profits worth
$0.26 billion. Assets held by Bank of Baroda were worth $32.80 billion and its
market value stood at $4.72 billion

2. BANK’S PROFILE

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15
Bank of Baroda is playing its business activity in 25 countries across the world and also

planning to operate its business activity in Malasiya with a joint venture of Indian Overseas

Bank and Andhra Bank. It is playing a joint venture with India Infoline & HDFC Bank .

These organizations are maintaining a relationship with the bank as an associate and

performing some business activity on behalf of Bank of Baroda. A new overseas branch was

opened in Newzeland.

2009-2010 Highlights

Rs. 250,000 Crore, Global Business Size

+ 33% ,Worldwide Business Growth
+ Rs. 3058 Crore Net Profit
+ 33 Million Global Customer Base
+ 3100 branches
+45 overseas branches
+ 1300 ATMs
+45.50 lakhs debit card issued
+38000 employees

3. DIFFERENT SERVICES AND PRODUCTS

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16
WHOLSALE BANKING
SME BANKING
RETAIL BANKING
RURAL/AGRI BANKING
WEALTH MANAGEMENT
DEMAT
DEPOSIT PRODUCTS
LOAN PRODUCTS
ATM/DEBIT CARDS
INTERNET BANKING
NRI REMITTANCE
BARODA E-TRADING
PRODUCT ENQUIRY

4. RECENT AWARDS AND ACHIEVEMENTS

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17
 1) ‘Bank of the Year Award' in India Leadership Conclave at Wockhardt
Foundation - 14th Sep. 2009

2) SKOCH Challenger Award for ‘Bank of the Year’ –

18th March 2010.

3) Second Rank as ‘Best Nationalized Bank’ in ‘India’s Best Bank

Survey 2009-10’ by Financial Express Group.

4) Rank 34 [up from Rank 39 last year] - India’s Most Valuable Brand
2009 (Brand Finance, UK)

5) Rank 33 [up from Rank 36 last year] – ET 500 2009

6) Rank 4 [up from Rank 17 last year] – Business Today KPMG Survey
2009

The Bank has also been awarded a ‘Gold Trophy’ for the Indian Language
Publication, a ‘Silver Trophy’ for the Corporate Website and a ‘Bronze Trophy’
for Bilingual Internal Magazine Chairman & Managing Director’s message (in
Corporate Communications category) by the Association of Business
Communicators of India (ABCI).

BARODA CAR LOAN

TYPE OF FACILITY
Term loan
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18
ELIGIBILITY
Employees and Directors of Private, Public limited companies proprietorship/partnership
firms and Govt. Employees/individuals high salary earners/businessman/Professionals. Prior
account relationship is not essential. However details of the applicant’s present account
(either with our bank or with other bank)for last six month should be studied to satisfy that
the conduct of the account is satisfactory.
Minimum age – 21 years
Minimum Employment – one year/stable business
For salaried persons – present age + repayment should not exceed retirement age
For others – present age +repayment age should not exceed 65 years

PURPOSE
a) For purchase of any new four wheele . Car, jeep, Station wagon etc. for private use.
b) For purchase of second hand car (not more than 3 years old).
c) For installation of CNG/LPG gas kit in new/old(not more than 5 years)four wheelers.

AMOUNT
New Vehicle Rs. 15 lakh
Old Vehicle Rs. 10 lakh
Gas kit Rs. 0.25 lakh

MARGIN
15% on cost of new car including registration charges.
40% of cost of second hand car.
15% Gas kit(new/old vehicle).

INTEREST

1. The revised rates shall be applicable to all new accounts granted on or after 01.07.2007.
However, existing loan accounts will continue at the old rate since in this cases rate

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applicable at the time of sanction is fixed for the full term loan. At present the interest rate is
10.5% and it is on floating basis.
2. Concession of 0 .50% in the rate of interest to those who offer minimum 50% liquid
security e.g. NSC, KVP, FDR, LIC policies etc. as collateral.

PROCESSING FEE

It is 0.75% of the loan amount which is the minimum.

Suppose a person takes a car loan of Rs. 4 lakhs then the processing fee will be Rs.3000.
Maximum processing fee is Rs. 6000 for this loan.

PRE-PAYMENT CHARGES

It is NIL in this type of loan.

COMMITMENT FEE

It is not applicable for this type of loan.

PENALTY CHARGES

It is 2% above the normal interest rate

REPAYMENT

84 months: in Equal Monthly Installments for new cars.

36 months: in Equal Monthly Installments for old cars.

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24 months: if loan is sanctioned for Gas kit.

12 post dated cheques to be obtained in advance every year with undertaking to maintain
adequate balance. The age + tenure of loan should be less than or equal to the retirement age
of salaried person and 65 years for self employed.

SECURITY/DOCUMENTATION

1. Loan agreement cum instrument of Hypothecation.

2. Bank’s charges to be noted with RTO.
3. Comprehensive Insurance of Vehicle with Bank Clause.
4. Blank Transfer of Ownership Form.

EMI stands for EQUATED/EQUAL MONTHLY INSTALLMENTS

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21
This is decided only after taking into account the repaying capacity, saving habits, tenure of
service etc. EMI consists of the principal amount and the interest. In the first year in EMI the
interest part is maximum which gradually decreases as the time goes by and then the
principal amount starts increasing. It is calculated by the EMI calculator.

Suppose a person takes a car loan of Rs.4 lakhs at 10.5%p.a. to be repaid in 48 months then
the EMI will be Rs 10242 monthly and his total interest amount will be Rs.91616.

Loan Details

Loan Amount : 400000

48 E.M.I @ : 10242

Payable every month

Interest Slabs

400000 @ 10.5%

Sr. No EMI Amount Principal Interest Balance

Opening Balance 400000

1 10242 6742 3500 393258

2 10242 6801 3442 386458

3 10242 6860 3382 379598

4 10242 6920 3322 372678

5 10242 6981 3261 365698

6 10242 7042 3200 358656

7 10242 7104 3139 351553

8 10242 7166 3077 344388

9 10242 7228 3014 337160

10 10242 7292 2951 329869

11 10242 7355 2887 322514

12 10242 7420 2822 315094

13 10242 7485 2758 307610

14 10242 7550 2692 300060

15 10242 7616 2626 292445

16 10242 7683 2559 284762

17 10242 7750 2492 277012

18 10242 7818 2424 269195

19 10242 7886 2356 261309

20 10242 7955 2287 253354

21 10242 8025 2217 245330

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 22 10242 8095 2147 237235

23 10242 8166 2076 229069

24 10242 8237 2005 220832

25 10242 8310 1933 212523

26 10242 8382 1860 204142

27 10242 8456 1787 195686

28 10242 8530 1713 187157

29 10242 8604 1638 178554

30 10242 8680 1563 169875

31 10242 8755 1487 161120

32 10242 8832 1410 152288

33 10242 8909 1333 143379

34 10242 8987 1255 134393

35 10242 9066 1176 125327

36 10242 9145 1097 116182

37 10242 9225 1017 106958

38 10242 9306 936 97652

39 10242 9387 855 88265

40 10242 9470 773 78796

41 10242 9552 690 69244

42 10242 9636 606 59609

43 10242 9720 522 49889

44 10242 9805 437 40084

45 10242 9891 351 30194

46 10242 9978 265 20217

47 10242 10065 177 10152

48 10242 10152 90 0

A corporation was incorporated at the initiative of World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development financial

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 institution for providing medium-term and long-term project financing to Indian businesses,
this was named as The Industrial Credit and Investment Corporation of India Limited
(ICICI), that was in 1955. In 1994, ICICI established Banking Corporation as a banking
subsidiary. Formerly known as Industrial Credit and Investment Corporation of India, ICICI
Banking Corporation was later renamed as 'ICICI Bank Limited'. ICICI founded a separate
legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit
cards, car loans etc. The bank has merged and also has acquired many banks of India. ICICI
started its international expansion by opening representative offices in New York and
London. ICICI made huge changes in its organisation like elimination of loss making
department and restreching outsourced staff or renegotiate their charges in consequent to the
recession. In addition to this, ICICI adopted a massive approach aims for cost control and
cost cutting.

ICICI is a major banking and financial services organization in India. It is the fourth
largest bank in India and the largest private sector bank in India in market capitalization. The
bank has a huge network of branches and is operating in almost 19 countries worldwide.
ICICI Bank is also the largest issuer of credit cards in India. The Bank is expanding in overseas
markets and has the largest international balance sheet among Indian banks.

PRODUCTS AND SERVICES

Investment Banking

Commercial Banking

Retail Banking

Private Banking

Asset Management

Mortgages

Credit cards

DIGNITARIES

K.V. KAMATH CHAIRMAN

CHANDA D. KOCHHAR MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER

N. S. KANNAN CHIEF FINANCIAL OFFICER

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 HIGHLIGHTS OF 2009-2010

+Rs. 4,843.41 crore Net profit

+35,000 Employees

+1700 Branches

+4721 ATMs

MERGER OF THE BANK OF RAJASTHAN LIMITED WITH

ICICI BANK

The Board of Directors of ICICI Bank and the Board of Directors of The Bank
of Rajasthan Limited (Bank of Rajasthan) at their respective Meetings held on
May 23, 2010, approved the scheme of amalgamation of Bank of Rajasthan
with ICICI Bank. The amalgamation is subject to approval of RBI and Members
of both the Banks. Approval of the Members of ICICI Bank is being sought at
an extraordinary general meeting scheduled on June 21, 2010.

ICICI CAR LOAN

TYPE OF FACILITY

TERM LOAN

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25
ELIGIBILITY

Self-Employed Partnership Private / Public

Particulars Salaried Individual
Individual Firm Ltd Co
Age The applicant should Any proprietor, Limited
Criteria* be above 25 years partner, companies
old at the time of professional or should have
application, and upto director above 28 - been in
58 years of age at years but below 65 existence for at
the time of maturity years at the time of least 3 years.
of the loan. the loan maturity.
Income Gross annual income Gross annual Firm should Minimum PAT
Criteria* of at least Rs. 2.50 income of at least have a (profit after tax)
lakhs. Rs. 2.00 lakhs. minimum PAT of Rs. 2.00
(profit after tax) lakhs.
of Rs. 2.00
lakhs.
Stability The total Business stability Business Business
employment stability should be more stability should stability should
should be more than than 3 years. be more than 3 be more than 3
2 years and current years. years.
employment stability
of minimum 1 year.

COMMITMENT FEE

It is not applicable for the car loans.

DOCUMENTATION
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26
.
Income proof:

Salaried individuals - Last 3 month's salary slip and Form 16/Income tax return of last 2
years.
 
Self-Employed individuals:

Income Tax Returns of 2 previous financial years.

 CAR LOAN AMOUNT

Car Loans from ICICI Bank are extremely convenient, flexible and quick. With more
than 1,000 channel partners in over 200 locations, we reach out to millions of
customers and help them realize their dream of possessing a car.

The minimum loan amount for taking a new car loan is Rs. 1,00,000. The maximum
loan amount will depend upon the price of the car, model variant, profile of the
customer, etc.

MARGIN

We finance up to 90% of the ex-showroom price of the car.

The Loan amount also depends on the car model. Higher loan amounts are available under
specific enhanced income eligibility criteria.

INTEREST

ICICI Bank offers car loans with fixed interest rate. In Fixed interest rate, the interest rate on
the car loan will remain fixed during the tenure of the loan. It is remains in between 9.5%-
13%.larger the loan amount lesser will be the interest rate and vice-versa.

SERVICE CHARGES

Description of Charges Car Loans

Loan Processing Fees New Car
Gross Loan Processing Documentation
Amt Fee Amt Charges
<2.5 L Rs.2500/- Rs.350/-
2.5 L to 5 L Rs.3100/- Rs.350/-

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 5 L to 10 L Rs.4000/- Rs.350/-
>10 L Rs.5000/- Rs.350/-

Stamp Duty Actuals

Lower of the two amount given below. 
1. 5% of principal outstanding or 
Prepayment Charges
2. Interest outstanding for unexpired period of the
loan.
Charges for late payment (loans) 2% per month on the outstanding installment
Cheque Swap Charges Rs. 500/- per transaction
Cheque return charges^ Rs. 400/- per return
Amortisation Schedule Charges Rs. 200/- per schedule
Statement of Account Charges Rs. 200/- per statement
Prepayment Statement Charges Rs. 100/- per statement
Duplicate NOC Charges Rs. 500/- per NOC
NOC for conversion from Petrol to LPG/CNG Rs. 500/- per NOC
Revalidation of NOC Charges Rs. 500/- per NOC
NOC to convert from Private to Commercial
Rs. 2000/- per NOC
Registration
NOC to convert from Commercial to Private
Rs. 2000/- per NOC
Registration

PENALTY CHARGES

It is 15% of EMI+ bouncing charges as applicable

Partnership Firms, Societies & Companies :

Income Tax returns of 2 previous financial years along with complete financial/audit
report.
 
Documents supporting customer information : 
 
Identity Proof, Signature Proof and Address Proofs as per ICICI Bank norms . 
 

Other documents:

Partnership Firms: Partnership deed and Letter signed by all partners authorising one
partner to execute the required Car Loans documentation.

Societies and Companies: Resolution by Board of Directors (or such managing body)

& Memorandum & Articles of Association (or Society/Trust deed).

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 Repayment Terms of your Car Loan
Repayment tenure ranges from 1 year to 5 years for car loans.

You may change the tenure of the loan before the loan is disbursed. The interest rate & EMI
would change accordingly.

The repayment due dates for the loan are 1st and 15thof every month and would depend on
the date of disbursement. Payment due dates cannot be changed.

You can make the Payments through post-dated cheques (PDCs)

Repayment option through Direct Debit Mandates is also available for all ICICI Bank account
holders.

Option of repaying through ECS is also available in select cities.

Payments through cash or credit cards are not accepted.

A full pre-payment of the loan is accepted. Part pre-payment is not allowed.

SECURITY/DOCUMENTATION

ADVANCE 12 MONTHS POST DATED CHEQUES

REGISTRATION CERTIFICATE, INVOICE AND INSURANCE POLICY OF THE

VEHICLE (XEROX)

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Axis Bank was the first of the new private banks to have begun operations in

1994, after the Government of India allowed new private banks to be

established. The Bank was promoted jointly by the Administrator of the

specified undertaking of the Unit Trust of India (UTI - I), Life Insurance

Corporation of India (LIC) and General Insurance Corporation of India (GIC)

and other four PSU insurance companies, i.e. National Insurance Company Ltd.,

The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.

and United India Insurance Company Ltd.

The Bank's Registered Office is at Ahmedabad and its Central Office is located

at Mumbai. The Bank today is capitalized to the extent of Rs. 406.94 crores

with the public holding at 54.55%. It has one of the largest ATM networks in

the country.

The Bank has strengths in both retail and corporate banking and is committed to

adopting the best industry practices internationally in order to achieve

excellence.

DIGNITARIES

Adarsh Kishore Chairman

Shikha Sharma Managing Director and Chief Executive Officer

PRODUCTS AND SERVICES

Investment Banking
Commercial Banking
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Retail Banking
Private Banking
Asset Management
Mortgages
Credit cards

HIGHLIGHTS OF 2009-2010

+ 2,514.53 crore Net Profit

+ 1000 Branches

+ 4300 ATMs

+ 13300 Employees

On February 24, 2010, Axis Bank announced the launch of 'AXIS CALL & PAY on atom', a

unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in

the country to provide a secure debit card-based payment service over IVR.

Axis Car loan

TYPE OF FACILITY
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Term Loan

ELIGIBILITY

Any person having a regular source of income can apply for the loan. The
person can be a Service person, Professional person, or a Self Employed person.
The applicant must not be a minor i.e. minimum age for applicability is 18+.

AMOUNT

Starting from 1 lakhs, the bank provides upto 75 lakhs depending upon the
income of the applicant.

MARGIN

Depending on the vehicle, minimum is 15% and maximum is the 35% of the
price of the vehicle.

INTEREST RATE

It varies on the type of vehicle which the applicant wants to purchase. The interest rate varies
in between 9.5% to 10.5% p.a. It is provided on floating basis.

PROCESSING FEE

The minimum processing fee is Rs.4500 and it changes with the type of vehicle or with
amount of loan to be sanctioned.

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PRE PAYMENT CHARGES

It is 3% of the loan amount due for payment.

COMMITMENT FEE

These charges are not applicable for such type of term loans.

PENALTY CHARGES

The penalty charges are 2% above the applicable rate of interest.

REPAYMENT

Minimum repayment duration is 12 months

Maximum repayment duration is 84 months

SECURITY/DOCUMENTATION

The documents which the bank asks for security of the loan are listed below:
One month EMI
Post dated cheques
Fixed deposits (minimum 10% of the loan amount)
Loan agreement letter and
Blank letter signed by the applicant assigning the transfer of ownership .

RESEARCH METHODOLOGY

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Research Methodology is an important part of every project. Because it help in
knowing how to select representative sample from the world or the general
population, the right research tools and techniques to complete the research.

To satisfy the customer the study of consumer behavior is important because

he is the king. The research process is based on survey method, so in order to
implement the survey we go to the service provider and the services user
which is the customer.

The research involves the following steps:

Define the problem and research objectives: The problem and objective is to
assess the services offered by various services provider and what the consumer
wants.

Developing the research plan: The second stage of research methodology is to

develop a research plan. The research plan designed to take decision on data
sources, research approaches, research instruments, sampling plan and
contact methods.

Survey Research: It was a descriptive research.

Research Instrument: In this research observation and personal interview

were conducted.

Personal Interview: The personal interview was conducted with different

designated person of different banks to find out the schemes provided by the
banks.

Sampling Plan: After finalizing the research approach and instrument a

sampling must be designed.

Sampling Unit: Data have been collected from banks.

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Sample Size: It has been collected from three banks.

Sampling Procedure: It helps in what process should be used to collect the

sample. So, representation samples, convenience sampling is used.

Collect the information: After completing all the steps, the data are collected
from different sources.

Analyze the information: The data so collected are analyzed to know the
findings.

Present the findings: As the last step, the findings are presented that are
relevant to the major marketing decisions.

LIMITATION OF THE STUDY

Every study has its own limitations in terms of methodology and available
resources for its conduct. This study was not an exception and was carried out
under the following Limitation:-
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35
1. The research was confined to only three banks.

2. The Executives of the Private Banks were reluctant in providing the

relevant information.

3. The research was carried out based on the secondary data.

4. The time was also one of the hindrances in the research.

5. Some important information was not there due to confidentiality involved in

it.

DATA AND DATA ANALYSIS OF CAR LOAN AMONG THE

DIFFERENT BANKS

ICICI BANK BANK OF BARODA AXIS BANK

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36
 INTEREST RATE 9.5% to 13%p.a. 10.5% p.a. 9.5% to 10.5% p.a.

PATTERN OF FLOATING FLOATING FIXED

INTEREST

PROCESSING FEE Rs.2850(min), 0.75% of the Rs.4500(min),

loan(min),
Rs.5350(max) Maximum depends on
Rs.6000 (max) loan amount

MARGIN 10% of the cost of 15% of the cost of 15% to 35% of the
vehicle. vehicle. cost of vehicle

PRE PAYMENT Lower of the two amount NOT APPLICABLE 3% of loan due
given below. 
CHARGES 1. 5% of principal
outstanding or 
2. Interest outstanding for
unexpired period of the
loan

PENALTY CHARGES 15% of EMI + 1.5% above the 2% above the

bouncing charges interest rate applicable rate of
interest

COMMITMENT FEE NOT APPLICABLE NOT APPLICABLE NOT APPLICABLE

MAXIMUM 60 months 84 months 84 months

REPAYMENT
DURATION

LOAN 01 days 02 days 04 to 05 days

DISBURSEMENT TIME

VEHICLE MOSTLY Standard (below 5 Standard (below 5 PREMIUM (above 5

FINANCED lakhs) lakhs) lakhs)

MORTGAGE Basic documents of Basic documents Documents and 10%

the vehicle only FD of loan amount

GURANTOR Its applicable but not Its mandatory just Its mandatory
mandatory for formality

EMI OF THE THREE BANKS

Equated monthly installment of the banks for the loan amount of Rs.300000 at different rate
of interest as applicable for the banks for different stipulated time period are shown below

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 BANK 1 year 2 years 3 years 4 years 5 years 6 years 7 years

Rs.26306 Rs.13775 Rs.9610 Rs.7537 Rs.6301

Or Or Or Or Or
ICICI N/A N/A
Rs.26796 Rs.14263 Rs.10109 Rs.8049 Rs.6826

Rs.26445 Rs.13913 Rs.9751 Rs.7682 Rs.6449 Rs.5634 Rs.5059

BOB

Rs.26306 Rs.13775 Rs.9610 Rs.7537 Rs.6301 Rs.5483 Rs.4904

Or Or Or Or Or Or Or
AXIS
Rs.26445 Rs.13913 Rs.9751 Rs.7682 Rs.6449 Rs.5634 Rs.5059

NOTE

Rate of interest

ICICI 9.5%p.a. or 13%p.a. BOB 10.5% p.a. AXIS 9.5% p.a. or 10.5% p.a.

INTERPRETATION

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The most important part of the loan is the interest rate charged by the financing institutes.

This interest rate must be a moderate one otherwise it would cost the applicant a huge amount

for a car. The interest rate can be on the floating or fixed basis and this can again be on flat or

reducing balance method. The interest can be charged on monthly basis or it can be done

annually. So, an applicant has to take a good look on the interest rate basis while buying a car

on finance.

A Private Bank charge low interest rates but they are generally on flat rate basis i.e. the

interest is charged on the loan amount every time but this is not the case with Bank of

Baroda, it charges the interest on reducing balance each time. In terms of interest rate Bank of

Baroda is most reasonable as compared to the ICICI, AXIS Bank.

The next thing which is of due importance is the margin money which the borrower has to

bring from his side, as bank never finance cent percent of the cost of the vehicle. The margin

money which is called for by the Private bank is a bit smaller than the Bank of Baroda. In

standard car it doesn’t create much difference but in case of premium or luxury car it creates

a good difference.

Processing fee is the one time charge which is charged by the financial institutes to carry out

the loan procedure. It is generally paid at the beginning or is adjusted against the loan

amount. The processing fee is much cheaper as compared to other two other two Private

Banks.

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A loan applicant can repay the loan amount anytime in a single shot or in part without paying

any prepayment charges in case of Bank of Baroda, but the Private bank charges a certain

percentage of interest for such facility and such has to be done in a single shot.

The time is friend of none. The time taken for the disbursement of loan is also of great

importance. Bank of Baroda disburses the loan in minimum of two days if all documents are

fully furnished which is lower compared to Axis Bank but ICICI Bank disburses the loan in a

single day if the applicant places all the required documents.

The most important question which comes to the applicant’s mind at the time of taking loan

is about the mortgage that has to be pledged before the institute for availing such loan. The

Bank of Baroda calls for only the documents of loan Vehicle, such as REGISTRATION

CERTIFICATE of the vehicle, INSURANCE POLICY, and a Blank form signed by the

applicant for the transfer of OWNERSHIP. But Axis Bank other than such documents calls

for 10% Fixed Deposit of the loan amount.

The next thing which haunts the applicants mind is about the guarantor. Bank of Baroda

wants to be on the safer side so it calls for a guarantor just for formality as it is a part of its

norms. The Private Banks also calls for the guarantor but it is not mandatory.

The applicant may not be in the position to pay the EMI on time sometimes, for life is full of

uncertainties. There may be certain unexpected expense during the period, so he may defer

the payment of EMI. The institutes charge a delay fine for such delay payment. The penalty

charge in case of Bank of Baroda is minimum as compared to the Private Banks.

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 MARKET SHARE OF MAJOR PLAYER
AXIS
12%

SBI
ICICI 36%
16%

BOB
24% PNB
12%

Indian auto market has more than 35 financers that offer auto financing solutions to the
intended car buyers. Being one of the fastest growing automobile markets in the world, the
Indian automobile market has got so much of potential and hence a number of auto finance
companies have come up to tap the booming market. It can be added here that the passenger
vehicle market constitutes almost 80% of automobile sales. In 2008, the stock passenger car
was about 11 per 1,000 people. The production of passenger vehicle is further expected to go
up at a CAGR of about 10% from 2009-10 to 2012-13. So, sensing this market potential,
many financial companies in India have given special attention on auto financing.

During the 2000s, the auto finance in India was dominated by private banks, when Citibank
was the market leader. But its market share dropped from 27 per cent during 90s to less than
8 percent during early 2000. ICICI Bank became the new leader with almost 29.2 per cent
market share during 2003-04. The journey continued till 2008 when HDFC bank took the
lead. However, the current trend shows that the PSU banks like SBI, PNB, Bank of Baroda,
Bank of India, Canara Bank, Syndicate Bank and Union Bank etc. are leaving behind their
private sector counterparts in the Rs. 22,000 crore passenger car and 2-wheeler loan market.
The reason behind this is the fact that, private banks have been compelled to reduce their
exposure to the sector owing to increased delinquencies.

PROMOTIONAL STRATEGIES OF THE THREE BANKS

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41
Bank of Baroda
The Bank gives importance to brand building and business development. It promotes its
products through branch publicity, through display of banners, posters and leaflets and
promotional events at ground level by using different types of media. The Bank believes in
the quality of services and products rather than Quantity of services and products.

ICICI Bank
Bank renders personalized services and the present emphasis in promotion is customer
satisfaction. Television, radio, movies, theaters, ICICI uses this component of promotion with
a motto of informing, sensing and persuading the customers. The bank also uses hoardings,
newspaper, magazines. The advertising professionals bear the responsibility of making the
appeals, slogans, messages more creative.

AXIS Bank
Visualization tangibilizes services through hoardings, TV and print campaigns or
advertisements. Physical representation in services has a good promotional appeal to
customers like use of colors to symbolize wealth and status. Service providers use
documentation in their promotions in support of their claims for dependability, popularity and
responsiveness

So here are a few things which might help you in choosing the right car-
financing option:
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The first thing you need to know, before availing for car loan, is the type of car you want and
see if it suits your estimated budget. Narrow your choice of cars, to two or three. Compare
rates of all banks and get their best rates. Also ask for recommended dealers for the car(s) of
your choice to see which dealer is giving you the best deal.

You apply for a loan and you buy a car. You go to a bank and fill out some forms and they
disburse your check. Sounds simple enough, doesn't it?

However, your application could be denied or cancelled, or you may get an offer at a high
interest rate if you have bad-credit history. All banks go through your financial history when
you apply for a loan. Different banks have different standards of judging a credit history. So
it is wise to clear up all old debts, if you have any, before you Apply for Car Loan. This will
help you get your loan approved at lower interest rates.

You repay the loan in equated monthly installments (EMIs), comprising of principal amount
and the Interest Rate. The EMI depends upon the loan amount, the interest rate and the tenure
of the loan.

Also don't just evaluate the deal based on monthly EMIs. Calculate how much you will be
paying over the tenure of the loan at EMI Calculator. This in turn is a function of Interest
rates.

The interest rate depends on the Flat Rate and Reducing Balance method. In the Flat Rate of
interest, the principal amount (on which interest calculations are made) remains same for the
entire tenure of the loan. The total interest is divided over the number of installments to
derive the EMI.

Reducing Balance, means reducing the paid-up principal amount (on which interest
calculations are made) from the outstanding loan amount. The interest you pay is calculated
on outstanding principal balance.

Car loans typically don't require a guarantor but if your income does not meet the credit
criteria, then you will be required to have a guarantor for your loan. Guarantor can be your
spouse, if employed, or a third party guarantee will do.
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Processing fees is a one-time charge taken for processing and legal paperwork. At the
beginning of the period, the bank requires you to pay 2-4 percent of the loan amount as
processing fees. For example, if you take Rs.5 lac at 15% for 5 years (60 EMIS) and charges
you 2 percent as processing fees, you are in effect paying an amount of Rs.10,000.

If you chose to pay up your entire money before the tenure, a Pre-payment penalty is charged.
So know about such penalties before-hand to avoid future misunderstanding between you and
the bank.

Also keep in mind that most banks offer you the option of pre-payment, but they do not give
the flexibility of part-payment.

You "have-to" insure your car. It is against the law to drive an uninsured car. You must get an
insurance policy for a year's duration, after which you have to renew it. The amount of
insurance is equal to the market value of the vehicle and not the book value of the vehicle.

The premium is added to the EMI paid for the loan tenure and you are insured for the amount
you have taken, incase something unexpected happens Assured amount will be given to the
bank without burdening the members of the family.

So keep these few things in mind while financing your next car !You have reached the best
spot to get the best loan, for your car, from the best banks. Go, get it!!!!

SWOT ANALYSIS OF BANK OF BARODA’S CAR LOAN

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44
 WEAKNESS
customer wants Product is very good but it is
Prepay whenever the mainly suitable for the higher
Save substantial interest income group and is not
STRENGHTS suitable for the middle
income group

SWOT ANALYSIS

Private Banks ICICI,AXIS Bank

OPPORTUNITIES
SBI,UNION Bank,and PNB.
Ample scope for financing Nationalized Banks like
cars and gas kits for the
salaried class in lower THREATS
income group

CONCLUSION

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The Indian customer has come a long way from purchasing to fulfilling their needs from

buying a car. Customers now grab everything that comes their way but they do their own

survey of optimum loans; same is the case with banks, and car loans. With innumerable

choices before him, the customer is indeed the king. It is therefore imperative that if a bank

has to succeed in the competitive world, it should be technological savvy, customer centric

progressive driven by highest standards of corporate governance and guided by sound ethical

values and above all should be cordial and should have personalize customer services.

There is scope of exploiting the vast middle income group by releasing loans with special

interest rate which would be beneficial to both parties.

SUGGESTIONS

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The following suggestions are strongly recommended:

1. To broaden the customer base the vast middle income strata should be
fully exploited

2. Simplify the procedure, reduce service charges, and demand only the
basic essential proof.

3. Most banks are reluctant to advance loan to the service class e.g. lawyers,
police officers etc.. This aspect must be exploited.

4. Adoption of flexible and more lenient penalty should the customer fail to deposit the
payment on time. The penalty should be on case to case basis rather than the same for the
entire customer base.

5. Restriction to be reduced to bare minimum for loan advances and for repayment. For e.g.
offer long-term repayment facilities and have no age restriction to choosing repayment.

6. The maximum age for repayment could be increase to 65-70 years of age.
Such facility will help grow fast retail segment of the bank.

7. Offer multiple repayment loans.

8. Service class to be exploited by offering special reduced rates and linking the repayment
from the source from where the pay-cheque to the employee is issued. This needs to undergo
special contract with government organisation to ensure implementation.

Glossary
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EMI
Loan repayments are usually in Equal Monthly Installments over the tenure of the loan. It

varies from 12 months to 84 months.

Fixed /Floating rate:

Under a floating rate loan, the interest rate on the loan varies from time to time

depending on the Prime Lending Rate fixed by the Reserve Bank. This change can

happen as frequently as one in six months. If the PLR falls, you benefit as the effective

interest rate on your remaining loan falls. However, your payments every month stay the

same. The Finance Company will refund some of your EMI cheques and effectively

compensates you by reducing the tenure of the loan. The reverse happens if the PLR

rises, much to your disadvantage.

Choosing between fixed and floating loans:

In the last 2-3 years the PLR has fallen as the Indian economy had slowed down and

demand for money was low. If you expect this trend to continue, you stand to benefit from

a floating rate loan. If interest rates begin to rise again, you can prepay your floating rate

loan and lock in to fixed rate loan. You must them choose a floating rate loan with no

repayment charges . However, if you do not want to speculate on interest rates and need a

stable loan to help planning the future, then go for a Fixed rate loan.

Processing Fee:

A onetime fee which is normally non-refundable and payable along with your initial loan

application.

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Administrative Fee:

A onetime fee which is normally non-refundable and payable before your loan is

disbursed.

Commitment fees:

This interest is charged if you do not draw the sanctioned loan within a period of 6-9

months. The rate of interest is usually not applicable for such loan.

Prepayment charge:

Most Banking companies charge a fee for prepaying your loan before its full tenure is

over. This helps them plan their finances, at your expense. Your earning capacity will

normally increase with age and a prepayment fee can be a big cost. This fee also limits

your ability to refinance the loan if interest rates fall after a few years. The fee is normally in

the range of 1-2% of the prepaid amount.

.
Down payment:

Banking companies would normally give a loan up to 80- 85% of the value of the

property. The remaining amount would have to paid by the buyer (to the seller), as a

down payment before the he draws on the loan.

Tenure of the loan

Normally, loans are given for a period of 1-7 years. Most companies do not allow loans

for a fraction of a year.

BIBLIOGRAPHY
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49
SOURCES

REPORTS

Annual Report of Bank of Baroda 2009-2010

Annual Report of ICICI Bank 2009-2010
Annual Report of Axis Bank 2009-2010

BOOKS and MAGZINES

C.R. KOTHARI, Research Methodology

BOBMAITRI DATED December 10 2009 to January 10 2010

SEARCH ENGINE
GOOGLE

WEBSITES
www.bankofbaroda.com
www.icicibank.com
www.axisbank.com
www.apnaloan.com
www.businessmapsofindia.com
www.ask.com

ANNEXURE

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 Questionnaire

I, hereby, a student of PGDM Programme of MAHARISHI ARVIND INSTITUTE OF

SCIENCE AND MANAGEMENT has to make a COMPARTIVE STUDY ON THE CAR
LOANS PROVIDED BY BANK OF BARODA TO THAT OF OTHER PRIVATE BANKS
as a part of our course curriculum to understand the FINANCING OF CAR LOANS IN
NAGAON . I kindly request you to provide your valuable contribution so as to make my
purpose possible.
RITESH KUMAR JAIN

BANK

NAME

DESIGNATION

ADDRESS

MOBILE NUMBER

1. WHAT IS THE ELIGIBLE CRITERIA FOR THE CAR LOAN OF THE BANK?

ANS-______________________________________________________________________________________

2. WHAT ARE THE DOCUMENTS CALLED FOR TO FULFIL THE KNOW YOUR CUSTOMERS NORMS?

ANS-_________________________________________________________________________________________

3. ON WHICH TYPE OF INTEREST RATE THE FACILITY IS PROVIDED BY THE BANK ON CAR LOAN?

ANS- A) FLOATING B) FIXED C) BOTH

4. WHAT IS THE AMOUNT UPTO WHICH LOAN IS PROVIDED FOR NEW CAR?

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51
ANS-
__________________________________________________________________________________________

5. WHAT IS THE INTEREST RATE CHARGED BY THE BANK FOR THIS LOAN ?

ANS-
__________________________________________________________________________________________

6. HOW MUCH IS THE PROCESSING FEE FOR THIS LOAN?

ANS-
__________________________________________________________________________________________

7. WHAT IS THE PERCENTAGE OF MARGIN ASKED FOR BY THE INSTITUTE?

ANS-
__________________________________________________________________________________________

8. WHAT AMOUNT OF PRE PAYMENT CHARGES IS CHARGED BY THE BANK FOR THIS LOAN?

ANS-_________________________________________________________________________________________

9. WHAT ARE THE SECURITIES OR DOCUMENTS PLEDGED BEFORE BANK FOR SUCH LOAN?

ANS-
__________________________________________________________________________________________

10. IN HOW MUCH TIME THE LOAN IS DISBURSED TO THE CLIENTS?

ANS-
__________________________________________________________________________________________

11. WHO ARE THE PREFERENTIAL CLIENTS FOR THIS LAONS ?

ANS- A) BUSINESS PERSON B) SERVICE PERSON C) OTHERS

12. WHAT IS THE LOAN REPAYMENT DURATION MININMUM AND MAXIMUM?

ANS-
__________________________________________________________________________________________

13. WHAT WAS THE NUMBER OF BAD DEBTS FOR THE LAST FY 2009-10?

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ANS-_________________________________________________________________________________________

14. WHAT ARE THE STEPS TAKEN AGAINST THE DEFAULTERS?

ANS-
__________________________________________________________________________________________

15. WHAT IS DONE OF THE DEFAULTED CLIENT’S VEHICLE?

ANS-
__________________________________________________________________________________________

16. HOW MANY PERSON APPROCHES AND TAKES THE LOAN IN A QUARTER OF A YEAR?

ANS-
__________________________________________________________________________________________

17. WHICH VEHICLE IS MOSTLY FINANCED BY THE INSTITUTE?

A) STANDARD (BELOW 5 LACS) B) PREMIUM (ABOVE 5 LACS)

18. WHAT ARE THE DIFFFERENT PROMOTIONAL STRATEGIES ADOPTED TO ATTRACT MORE
CONSUMERS FOR THE LOAN?

ANS-_______________________________________________________________________________________

19. WHAT IS THE COMMITMENT FEE (IF APPLICABLE)?

ANS

20. WHAT IS THE DELAY/PENALTY CHARGES IF FAIL TO PAY EMI ON TIME ?

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53
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