PROJECT REPORT

ON

SALARY LOAN
TOWARD
HEAD OFFICE OF THE HOSHIARPUR CENTRAL

CO – OPERATIVE BANK LTD.(B.O. SIKRI )

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
AWARD OF BACHELOR’S OF BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:

Ms.Deepti Sharma Gurpreet Singh Chauhan
REGISTRATION NO:
20025049
BBA 5th SEMESTER

SANT BABA BHAG SINGH UNIVERSITY

1
 PREFACE

The practical training is better than classroom training, during practical training;
person comes to know about actual difficulties faced during the work. As the part
of summer training I got opportunity to work with THE MAHILPUR CENETRAL
COOPERATIVE BANK BRANCH OFFICE.

The need to have maintained a developed banking facility being felt in the whole
world due to globalization , now a days when mostly operations of business and
other activities had been done by bank. Bank provides many facilities to its
customers. Bank plays an important in development of country.

After analysis, I have given some suggestion, I hope my little effort would be
surely considered and bank will take necessary steps.

2
 DECLARATION
I hereby declared that I, Gurpreet Singh Chauhan the student of BBA 5TH
semester, in SANT BABA BHAG SINGH UNIVERSITY have gone under summer
training in cooperative bank of Punjab (Mahilpur branch). I have prepared the
project report on Salary loan. I have submitted this report in respected university
not elsewhere.

Gurpreet Singh Chauhan

3
 ACKNOWLEDGEMENT

The project report have not possible without the kind assistance and guidance of
many person who indeed were very helpful , cooperative , kind during the entire
course of my assignment. I would like to take this opportunity to express my
heartfelt appreciation for all those concerned.

I would like to thank Mr. Daljit Singh,manager of Mahilpur Branch, who scheduled
this training program. He took personal interest in spite of his numerous
commitments and busy scheduled to help me complete this project.

Gurpreet Singh Chauhan

4
CERTIFICATE OF TRAINING

5
 CONTENTS

 INTRODUCTION
 BANKING SYSTEM IN INDIA
 INTRODUCTION AND MEANING OF COOPERATIVE BANK LTD.
 OBJECTIVES OF COOPERATIVE BANK
 FEATURES AND ROLE OF COOPERATIVE BANK
 WEEKNESS AND SUGGESTION OF COOPERATIVE BANK
 INTRODUCTION OF LOAN AND ADVANCES
 INTEREST RATES
 SALARY LOAN
 RESEARCH METHODOLOGY
 QUESTIONNAIRE
 PROBLEMS FACED BY COOPERATIVE BANK
 LIMITATIONS
 SUGGESTIONS
 BIBLOGRAPHY

6
INTRODUCTION
OF
BANKING

7
DEFINITION OF BANK
The Banking Companies Regulations Act of India 1949, defines Banking as “The
accepting for the purpose of lending or investment of deposits of money from
public, repayable on demand or otherwise, withdrawal by cheques, drafts or
otherwise”. According to HORACE WHITE “The bank id manufacturer or credit and
a machine for facilitating exchange.”

BANKING SYSTEM IN INDIA

Banking system occupies an important place in nation economy. In present days,
world’s banking institution has become indispensable. They play a pivotal role in
economic development of a country and upliftment of society. Banks are playing
an important role in the nation’s economy. In India, though the money market is
still characterized by the existence of both the organized and unorganized
segments, institutions in the organized money market have grown significantly
and are playing an increasingly important role. The unorganized sector
compromising the money lender and indigenous bankers caters to the person’s
economic needs especially in country side. Amongst the institutions in the
organized sector money market, commercial banks and cooperative banks have
been in existence for the past several decades and now they are being considered
as the nerve center of the economy. Banking plays a very important role in the
economic development of the people. Now-a-day we cannot dream of any
business without banking assistance. This is reason the banks are remarked as
life-blood of modern economy. The Indian economy is characterized by the
escalating trends towards the usage of banking products and services both the
rural and urban markets.

8
 INTRODUCTION
OF
COOPERATIVE BANK

9
 INTRODUCTION
Co-operative banks are small-sized units organized in the cooperative sector
which operate both in urban and non-urban regions. These banks are tradionally
centered on communities, localities and work place groups and they essentially
lend to small borrowers and businesses, the term Urban Co-operative Banks
(UCBs), though not formally defined, refer to primary cooperative banks located
in urban and semi-urban areas.

These banks, until 1996, could only lend for non-agricultural purposes. As at end-
March 2011, there were 1,645 UCBs operating in the country, of which majority
were non-scheduled UCBs. Moreover, while majority of the UCBs were operating
within a single State, there were 42 UCBs having operations in more than one
State. However, today this limitation is no longer prevalent. While the co-
operative banks in rural areas mainly finance agricultural based activities
including farming, cattle, milk, hatchery, personal finance, etc. along with some
small scale industries and self-employment driven activities, the co-operative
banks in urban areas mainly finance various categories of people for self-
employment, industries, small scale units and home finance. These banks provide
most services such as saving a current accounts, safe deposit locker, loan or
mortgages to private and business customers for middle class users, for whom a
bank is where they can save their money, facilities like internet banking or phone
banking is not very important. Although they are not better than private banks in
terms of facilities provided, their interest rates are definitely competitive.
However, unlike private banks, the documentation process is lengthy if not
stringent and getting a loan approved quickly is rather difficult. The criteria for
getting a loan from a UCB are less stringent than for a loan from a commercial
bank.

10
 MEANING
OF
COOPERATIVE
BANK LTD.

11
DEFINITION OF BANK
The Banking Companies Regulations Act of India 1949, defines Banking as “The
accepting for the purpose of lending or investment of deposits of money from

son the banks are remarked as life-blood of modern economy. The Indian
economy is characterized by the escalating trends towards the usage of banking
products and services both the rural and urban markets.

DEFINATION

“A cooperative bank, as its name indicate is a institution consisting of a number

of individual who join together to pool their surplus saving for the purpose
of eliminating the profit of the banker or money lenders with a view to
distributing the same amongst the depositors and borrowers.”

The cooperative banks act, of 2007 defines a cooperative bank in term of the act
whose members –

Are of similar occupation or professional or who are employed by common

employer or who are employed with in the same business district; or

Have common membership in an association or an organization, including a

business, religious, social, cooperative, labor or education groups; or

Reside within the same defined community or geographical area.

12
Registration of cooperative societies

 With the objective of promotion of the economic interest, in accordance

with cooperative principle, or a society established with the facilities the
operations of such a society may be registered under the act.
 One registered cooperative society becomes a legal person. It becomes a
body corporate.

Application of registration

 In prescribed form
 Three copies by law
 Number of applicants not less than 10 individual members
 Individual members not to be less than 18 years
 If a credit society than the application should be ordinary member of the
society

13
 PRINCIPLES OF COOPERATIVE BANK

Voluntary and open membership

Democratic member control

Member economic participation

Autonomy and independence

Education training and information

Cooperation among cooperatives

Concern for community

AUTHORITIES

Matters relating to every cooperative

Director of the cooperative appointed by the State Government

Director of cooperative is responsible audit of the cooperatives

14
 CORE VALUES OF COOPERATIVE BANK

 Integrity
 Walk the talk
 One team one dream
 Customer certificity
 Serving the front line
 Passionate ownership
 Energy in action
 Excellence
 Being the best

15
OBJECTIVE, FEATURES
AND ROLE
OF
COOPERATIVE BANK

16
 OBJECTIVES
1. To serve as a balancing center for cooperatives societies in the state of
Punjab registered under the Punjab cooperative societies act 1961 for the
time being in force.
2. To promote the economic interest of the member banks and cooperatives
societies in the state in accordance with cooperative principle and to
facilitates the development and funding of any cooperative society register
under the said act.
3. To carry on banking and credit business.

17
 FEATURES OF COOPERATIVE BANK

1 Cooperative bank are organized and managed on the principle of ‘no profit
no loss.’
2 Cooperative bank performs all their banking functions of deposit, credit,
mobilizing and remittance.
3 Cooperatives banks are provide limited banking products and are special in
agricultural products.
4 Cooperative banks are first government supported financial agency in India.
5 Cooperative banks are belongs to money market as well as capital market.
6 Cooperative banks are only partial intermediaries
7 Some cooperatives banks are scheduled banks and another are non
scheduled banks.
8 Membership of cooperative organization is open to all irrespective f color,
caste are creed
9 Cooperative banks use the immense the power of capital to carry on the
working of society in the interest of its members.
Cooperative banks also exhibit the features of education and training

18
 ROLE OF CO-OPERATIVE BANKING INDIA:

Co-operative banks are much important in India than anywhere else in the world.
The distinctive character of this bank is service a lower cost and service
without exploitation. It has gained its importance by the role assigned to
them, the expectation they are supposed to fulfill, their number, and the
number of offices they operate. Cooperative bank role in rural financing
continues to be important day by day, their business in the urban area also
has increased phenomenally in recent years mainly due to the sharp
increase in the number of primary cooperative banks. in rural area as for as
agricultural and related activity are concerned, the supply of credit was
inadequate, and money lenders would exploit the poor people in rural area
providing them loans at higher rates .so, cooperative banks mobilize
deposit and provide at the agriculture and rural credit with a wider
outreach and provide institutional credit to the farmer. Cooperative bank
have also been an important instrument for various development scheme.
Particularly subsidies based programs for poor.

19
 WEEKNESS
AND
SUGGESTION
OF
COOPERATIVE BANK

20
 MAIN WEAKNESS OF THE COOPERATIVE BANKS IS:

1. The primary agricultural cooperative societies remain very weak.

2. With the expanding credit needs of rural sector, the commercial banks
have come in actively to meet the credit requirement of the sector.
3. Cooperative banks are not doing well in all the states, only a few
accounts for a major part of their business.
4. These banks still rely very heavily on the refinancing facilities activities.
5. Many cooperative banks use the old system which is not compatible
with the modern technology.
6. There is lack of governance.
7. There is no formal system in the cooperative banks.
8. These banks are organized under dual control of R B I.
9. Some of these banks are only doormat.
10.Govt. also exercise control on these banks by various ways.

21
 SUGGESTIONS FOR EFFECTIVENESS

The following suggestions to be made for improving the effectiveness in

operation of banking:

 The bank should adopt the system of computerized monitoring of loan.

 The bank should plan to introduce new scheme for attracting new
customers and satisfying the present ones,
 All cooperative banks should cover in one umbrella i.e. CORE BANKING.
 The banks should improve the customer’s services of the bank to better
extent.
 The banks should plan for expansion of branches.

22
 LOAN
AND
ADVANCES

23
 INTRODUCTION TO LOAN AND ADVANCES
The commercial banks accept deposits and lend money to the people who
required it for various purposes. Lending of funds to traders, businessmen
and industrial enterprises is one of the important activities of the bank. The
major part of the deposit is lent out and large part of their income is earned
from on such lending. There is different between the rate of deposits and
rate of lending. This difference in the interest rate is the main source of
earning
MEANING OF LOAN AND ADVANCES
 The term “loan” refers to the amount borrower by one person to
another.
 The amount in the nature of loan and refers to sum paid to the
borrower.
 Thus, a borrower says it borrowing and the bank says it lending.

24
 Interest rates in on deposit with effect from 23.07.2016

S No. Schemes Period From Period up to Rate of

interest(public)
1 Saving Bank _ _ 4.00%
A/c
2 Saving Bank – _ _ 4.00%
No frill A/c
3 Term Deposit 7days 14 days 4.00%
A/c
4 Term Deposit 15 days 30 days 4.50%
A/c
5 Term Deposit 31 days 45 days 5.25%
A/c
6 Term Deposit 46 days 90 days 6.25%
A/c
7 Term Deposit 91 days 179 days 6.75%
A/c
8 Term Deposit 180 days 269 days 7.00%
A/c
9 Term Deposit 270 days 1 year 7.25%
A/c
10 Recurring 1 year 2 year 7.90%
deposit A/c
11 Term 3 years 5 years 7.40%
Deposit A/c
12 Term Deposit 5 years And above 7.4%
A/c

25
 SALARY LOAN

Salary loan is a small, short term and unsecured loan, regardless of whether of
loan is linked to borrowers’ payday. The loans are also sometimes referred to as
“cash advances” though that term can also refer to cash provided against a
prearranged line of credit such as a credit card. Payday advances loans rely on the
consumer having previous payroll and employment records. Legislation regarding
payday loans varies widely between different countries and, within the USA,
between different states.

26
 FACITIES PROVIDED BY THE CO-OPERATIVE BANK
 Scheme for granting loans to individuals salary and non salary earners by
the state and central cooperative banks for socoi -economics needs

Definitions:

I. The ‘bank’ mans the PSCB/central cooperative banks of Punjab.

II. The ‘board of directors and the ‘executive committee’ means the board of
directors and executive committee constituted under the bye-laws of the
bank.
III. ‘Authorized officers’ means the officers authorized by the BOD/Executive
committee of the bank t receive and take appropriate action on the
applications for loan under the scheme.
IV. ‘Borrower’ means an individual.
V. ‘Cooperative societies act’ means the Punjab cooperatives societies
act’1961 as amended from time to time.
VI. Cooperative societies ‘Rules’ means the Punjab cooperative societies
rules’1963 as amended from time to time.
VII. ‘Bye laws’ means the bye laws of the bank.
VIII. ‘Salary Earners’ mean permanent employees of organized sector where
provident fund is deducted.
IX. ‘Non Salary earners’ includes Professionals, Businessman, Self employed,
Farmers etc

27
Rules for granting loans to individuals’ salary and non salary earners by the
state and central cooperative banks for socoi-economics needs:

a) The bank may grant loans to individual salary earners and non salary
earners holding saving bank account or current account with the bank for
purchase of consumer durable and meeting other socio-economic needs.
b) The loan should be repayable in monthly installment but the total duration
of loan should exceed 5 years in any case.
c) The borrower should be enrolled as nominal members of the bank. The
borrower would be required to produce 2 sureties who should also be
nominal members of the banks.
d) In case of salary earners, the loan limit per borrower are 10 times gross
monthly salary or Rs.2.00 lac or75% of the cost of article to be purchased
whichever is less.
e) In case of non salary earners, the amount of loan should not exceed
Rs.200000/-per borrower in accordance with the slabs fixed here under:
Range of half yearly income Max. loan amount(Rs)

Up to Rs.18000/- Rs. 15000/-

From Rs. 18001/- to Rs.27000/- Rs. 25000/-
From Rs.27001/- to Rs.40000/- Rs. 30000/-
More than Rs. 40001 Rs. 50000/-

For category last copy of previous year income tax return is essential. The loan
should be advanced for acquiring new assets only purchase second hand article
should not be financed in any case.

28
f) The bank should obtain salary certificate from the borrower. The
borrower himself should be responsible for the repayment of his
loan. However he should also produce a copy of authority letter
addressed to the bank directs to do so. The bank shall inform the employer
immediately after the sanction of loan.
g) In case of default by the borrower, the bank will ask the employer of the
borrower to deposit the due amount by deducting from the salary of the
employee.
h) The employee should give standing instruction to debit the amount of
installments or overdue installments together with interest due on that
loan every month to his saving bank account or current account as the case
may be.
i) The bank should also obtain the following document from the borrower:
 Salary certificate/proof of income.
 Loan agreement.
 Demand promissory note.
 An authority letter from the loanee under section 39 of Punjab
cooperative societies act, 1961 for repayment of loan in case the
borrower fails to repay the loan.
 An authority letter from the borrower to recover the installment and
interest by debiting to saving and current account.
 Letter of waiver.
 Post dated cheques equal to number of installments should be
obtained from the borrower.
j) The payment of loan shall be made directly to the borrower by crediting to
his account.
k) The loan should be advanced against hypothecation of the assets
acquired/to be acquired, if any.
l) Rate of interest shall be as fixed by the bank from time to time
with quartly rests. Penal interest at the rate of 2% shall be
charged on the default amount for the defaulted period.

29
m) Whenever the borrower or his employer fails to discharge the
loan as agreed upon, the bank should take the legal action to
recover the loan advanced/outstanding with interest and costs.
The borrower will be liable to make good all the expenses and legal charges
that have been incurred by the bank in his regard.

30
 Scheme for overdraft facility to the holders of saving account for salaried
employees;
 Rules:
a) The beneficiary will be regular/permanent employees of
Punjab Govt., Semi Govt., Autonomous Bodies ,Boards &
corporations, Apex, District ,Cooperative Institution or any
other organization with the approval of BOD, whose salary is
being credited in the saving account of bank branch.
b) The saving account must be more than one year old and
applicant should have maintaining fairly satisfactory balance in
the account.
 Extent of Overdraft:
The maximum limit if overdraft shall be Rs.150000 which is
calculated as under:
Gross Salary Extent of Overdraft
Salary from Rs. 15000/- to Rs. Rs.50000
30000/-
Salary from Rs. 30001- to Rs. Rs.100000
45000/-
Salary above Rs. 45000/- Rs.150000

 Rate of interest:
Rate of interest will be 13% per annum compounded quarterly
or as decided by the bank from time to time. Penal interest@ 2 % will
be charged in the case of default.

31
 Period of overdraft:
The period of the overdraft limit is one year. Branch
manager shall renew the limit of the borrower after the year
on the basis of satisfactory operations in the account. The
amount overdrawn by a customer will have to be deposited
in the bank, so as to depict a credit balance in the account of
Rs. 500/- or more for 4 days during the year.

 General conditions:
 The overdraft facility must be liquidation before 6
month of retirement or before leaving the job.
 In case the borrower fails to repay the outstanding
amount within 30 days after the demand of the bank
or a period of overdraft, the bank will recall the loan
and exercise its powers under section 39(3) or under
section 55 of Punjab cooperative societies act 1961 or
both as the case may be recovery of the amount and in
such cases all expenses will have to the borne by the
borrower.
 The manager is required to sign on behalf of the bank
on all the bank pages executed by the borrower.
 The borrower shall agree to be bound by the provision
regarding arbitration clause under Punjab cooperative
societies act and rules & bye laws of the bank.

32
  The borrower should enroll himself as a nominal
member of the bank by paying necessary membership
free as fixed by the bank from time to time.
 The manager should renew the overdraft limit of the
borrower for a further period subject to satisfactory
operations in the account.
 The banks reserve the right to recall the amount
overdrawn with interest in lump sum if in any case
bank finds account not running satisfactorily.

 Document to be submitted:
 The beneficiary must be a nominal member of the
bank.
 He/she must apply for overdraft facility in writing in
prescribed Performa.
 Irrevocable debit authority shall be given by the
borrower to deduct of overdraft out of his/her saving/
current.
 The borrower will submit a demand promissory note,
letter of lien, letter of set off and letter of continuity
etc.
 Two good sureties to the satisfaction of bank.
 An irrevocable authority letter under section39 of the
Punjab coop. societies act, 1961 from the borrower.

33
 SCHEMES OFFERED BY COOPERATIVE BANKS
 Short Term Agriculture Loan.
 Medium Term Agriculture Loan.
 Personal Loan Scheme.
 Non Form Sector Loan Scheme (NFS)
 Consumer Durable Loan.
 Vehicle Loan Scheme.
 Second Hand Vehicle Loan Scheme.
 Urban Housing Loan.
 Cash Credit Facility to Traders.
 Revolving Cash Credit to Farmers.
 Two Wheeler Loan to Farmers.
 Rural Housing Scheme.
 Mini Dairy Scheme.
 Commercial Dairy Development Scheme
 Co-operative Education Loan scheme children of poor Farmers, Dalits, BC etc.
 Dairy Loan Scheme to Purchase Cow.
 Loan Against for Earnest Money.
 Mai Bhago Istria Shakti Scheme.
 Bhai Lalo Sehkari Kirt Shakti Scheme.
 Education Loan.
 Credit for Setting up of Net House.
 Credit for setting up of Agriculture Service Centre.
 Personal Loan Scheme for Professionals.
 Overdraft Facility to salaried employed having Salary Account with co-
operatives bank.

34
 RESEARCH METHODOLOGY
Type of research-

Descriptive research is used in this study in

order to identify the lending practices of bank and determining
customer’s level of satisfaction. The me5thod was used
questionnaire and interview of the experienced loan officers.

Collection of data:

1. Primary Data:
a. Observation Method
b. Interview Method
c. Structured Questionnaire
2. Secondary Data:
a. Annual reports of the bank
b. Manual of instructions on loans and advances
c. Books
d. Articles and research papers
e. Internet

Sampling Unit:

The study population includes the customers of bank and

sampling unit for study was individual customer.

Sampling Size: 50 Respondents

35
 DATA ANALYSIS AND INTERPRETATION

Table 1: Preferences of the customers for the loans

Kind of Loan No. of Respondent Percentages (%)

House loan 16 32%
Personal loan 15 30%
Consumer Loan 6 12%
Education Loan 8 16%
Vehicle Loan 3 6%
Other 2 4%

18
16
14
12
10
8
6 NO. OF RESPONDENT

4 Column1

2
0

36
Figure 1: Preferences of the customers for the loans

Present study reveals that majority of the respondents have taken house
loans & personal loan and less respondents prefer consumer, education and
vehicle loan.

Table 2: Range of the amount of loans

Loan Amount No. of Respondent Percentages (%)

Less than 20000 4 8%

20000 to 50000 10 20%
50000 to 100000 6 12%
More than 100000 30 60%

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

37
Figure 2: Range of the amount of loans

Present study reveals that 8% people prefer loan less than 20000,20%
respondents prefer 20000 to 50000, 12% prefer more than 1 lac and 60% of the
respondents prefer more than 1 lac.

Table 3: Preferable term of loan

Term of Loan No. of Respondents Percentage (%)

Less than 1 year 6 12%
1 to 3 year 10 20%
More than 3 years 32 64%

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Figure 3: Preferable term of loan

Study shows that 64% respondents take loan for more than 3 years, 20% take
loan for 1 to 3 years and 12 % take loan for the period of less than 1 year.

38
QUESTIONNAIRE

39
 QUESTIONNAIRE

COOPERATIVE BANK LIMITED, MAHILPUR

 PERSONAL DETAILS

1. Name
2. Address:
3. Occupation
Professional
Business
Service
Student

 Type of accounts with our Bank:

1. SAVING A/C
2. FIXED A/C
3. CURRENT A/C
4. RECURRING DEPOSIT A/C

40
1. RATING:
Tick A, B, C, D AS “A” BEING EXCELLENT
“B” BEING GOOD
“C” BEING SATISFACTORY
“D” BEING NOT SATISFACTORY

2. WHAT DO YOU THINK ABOUT THE INTERNET RATES BEING GIVEN BY

THE BANK ON SAVING A/C AND FIXED A/C?
 VERY HIGH
 HIGH
 LESS
 MODERATE

3. DO YOU CONSODER THE INTEREST RATES BEING CHARGED BY THE

BANK JUSTIFIED AND AFFORDABLE?
 YES
 NO

4. KINDLY MENTION THE ACTION TIME TAKEN IN THE FOLLOWING

TRANSACTION:
(TICK TIME SLOT TIME IS MENTIONED MINUTES)

TRANSACTION <5 5-10 10-15 >15 SATISFIED

OPENING OF A/C
DEPOSIT OF CASH
WITHDRAWL OF CASH
UPDATE OF PASSBOOK
ISSUE OF CHEQUE

41
5. ARE YOU SATISFIED WITH THE MINIMUM BALANCE REQUIREMENT IN
YOUR ACCOUNT IN THIS BANK?
 YES
 NO
 CAN’T SAY
6. WHAT DO YOU THING ABOUT THE BANK ADDITIONAL FACOLITY OF
PROVIDING LIFE INSURANCE?
 BENEFICIAL
 NOT BENAFICIAL
 CAN’T SAY
7. WHICH LIFE INSURANCE POLICY PLAN IS BEST FOR INVESTMENT?
 10YEARS POLICY
 15YEARS POLICY
 20YEARS POLICY
8. BANK THE FOLLOWING BANKS AS PER CHOICE BANK FROM 1-5 AS “1”
BEING HIGEST AND LOWEST.
CAPITAL SMALL AND FINANCE BANK
CENTURIAN BANK OF PUNJAB
STATE BANK OF PATIALA
PUNJAB NATIONAL BANK
PUNJAB AND SIND BANK
UNION BANK

9. LASTLY, PLEASE SPECIFY WATEVER YOUR WILL BE INTERESTED IN

CONDUCTING BUSINESS WITH OUR BANK AND CONTINUE YOUR
TRANSACTIONS IN THIS FUTURE.
 YES
 NO

THANKYOU VERY MUCH FOR SPARING YOUR VALUABLE TIME IN FILLING UP THIS
QUESTIONNAIRE YOUR VIEW WILL ENABLE US TO SERVE YOU BETTER IN THIS
FITURE.
DATE: ……………… SIGNATURE: ………………..

42
 FINDING OF THE STUDY
 Majority(32% as per the study) of the respondent were having housing loan
from this bank
 Most (64% as per the study) of the people prefer to take long term loan
whichever is more than 3 years.
 There is a very simple procedure followed by bank for loan.
 Easy repayment and less formality are the main factors determining
customer’s selection of loans.
 Quality of services provided by the staff is satisfactory because bank is
catering to a small segment only and customers are property deal with.
 Customers are satisfied with the mode of repayment of installments.
 Average time for the processing of loan is less i.e. approx 7 days.

43
 PROBLEMS FACED BY COOPERATIVE BANKS

1 The cooperative financial institution is facing severe problems which have

restricted their ability to ensure smooth flow of credit:-
 Limited ability to mobilize resources.
 Low level of recovery.
 High transaction of cost.
 Administration rate of interest structure for a long time.
2 Due to cooperative legislation and administration, Govt. interference has
become a regular feature in the day to day administration of the
cooperative institution. Some of the problem area that arises out of the
applicability of the cooperative legislative is:
 Deliberate control of cooperative by the government.
 Nomination of board of director by the government.
 Participation of the nominated director by the government.
 Deputation of government officials to cooperative institution etc.
3 The state cooperative banks are not able to formulate their respective
policies for investment of their funds that include their surplus resources
because of certain restriction.
4 Prior of RBI is mandatory for opening of new branches of SCBs. The SCBs
are required to submit the proposal for opening branches to RBI through
NABARD, whose recommendation is primarily taken into consideration
while according permission.

44
 LIMITATION,
CONCLUSION AND
SUGGESTION

45
 LIMITATIONS

 The study is based on the data of past three or four year only.
 The data for study mainly based on a single bank.
 As majority of the customers are employee of the banks, they might be
biased in giving the information.
 The time period of the research was limited.

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 CONCLUSION

As we observed the trends in Indian financial sector is changing rapidly

through innovation and dependability of loan and advance had also increased
and much awareness of this concept has been found.
 Salary loan have been an important source of raising the finance amongst
individual, corporate as well as for the higher organizations.
 A secured loan is a loan given for commercial purpose; it keeps business
properties as collateral. It can be taken for a variety of purpose like
diversification, research and development or to buy plants and
machineries.
 The advantages with loan are that you can design your repayment period as
well as monthly installments according to your financial capacity. A loan
comes at a lower interest rate than compare with other business loan. As
these loans are taken against collateral, any default in repayment can put
your commercial property at risk.
 To be competitive and successful in modern corporate world, constant
capital flow is essential. Whether to expand your business or relocate your
production unit to some other place for cost. Effectiveness to require
finance. It not always possible to find them to internet sources. Delay of a
few days cam cost you in millions. To make your enterprise successful and
to run your business strategically, a secured is an option worth trying for.

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 SUGGESTION

 The bank should adopt the modern methods of banking like internet banking,
credit cards, ATM, etc.
 The bank should plan to introduce new scheme for attracting new customers
and satisfying the present ones.
 The bank should plan for expansion of branches.
 The banks should improve the customer’s services of the bank to a better
extent.

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 BIBLOGRAPHY

Name of the book Name of the author

 Banking Law and Practices Varshney P.N

 Practice and Law in Surya H.R
Banking
 Principle & Practice of P.Subha
Bank Mgt.
 Law and Practice in India Tannan’s Banking
 Banking Theory and Law & Maheshwari
Practice
 Mgt. of financial institution Madhu Vij :
in India
 Reserve Bank of India
Bulletins
 www.rbi.org.in
 www.irda.org
 www.pscb.or.in

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