PERSONAL LOANS OF HDFC BANK

Project report submitted to the

UNIVERSITY OF MADRAS

in partial fulfillment of the requirements for the award of degree of

BACHELOR OF COMMERCE IN BANK MANAGEMENT

By

SUMAN JAIN

REGISTER NO: 06/E303120

Under the supervision and guidance of

MRS.A.J.JEMIMA MALATHY, M.C.S, M.PHIL

DEPARTMENT OF BANK MANAGEMENT

ETHIRAJ COLLEGE FOR WOMEN

(EVENING)

CHENNAI-600008

March-2009

THE ETHIRAJ COLLEGE FOR WOMEN

(AUTONOMOUS)

DEPARTMENT OF BANK MANAGEMENT

ETHIRAJ SALAI

CHENNAI-600 008

CERTIFICATE

This is to certify that the Project entitled PERSONAL LOANS OF HDFC BANK Submitted by G.SUMAN JAIN in partial fulfillment of the requirements for the award of the degree of BACHELOR OF COMMERCE IN BANK MANAGEMENT done by her at the DEPARTMENT OF BANK MANAGEMENT, ETHIRAJ COLLEGE FOR WOMEN during the period of study from 2008-2009 under my supervision. This report represents the independent work on the part of the candidate.

Signature of the candidate

MRS.A.J.JEMIMA MALATHY MRS.T.USHAPRIYA

M.C.S, M.PHIL M.COM, M.PHIL

LECTURER HEAD IN CHARGE

DEPARTMENT OF BANK MANAGEMENT DEPARTMENT OF

BANK MANAGEMENT

ETHIRAJ COLLEGE FOR WOMEN ETHIRAJ COLLEGE FOR WOMEN

CHENNAI-600008 CHENNAI- 600008

STATION: CHENNAI

DATE:

ACKNOWLEDGEMENT

First of all I thank the almighty, who has been with me through every walk of my life guarding me and showering his belongings throughout the endeavor to put forth my dissertation.

I would like to take this opportunity to express my sincere thanks to our MRS. T. USHA PRIYA, our Head-in-Charge of BANK MANAGEMENT for her guidance and support.

I would also like to express my sincere thanks to my guide MRS. A.J.JEMIMA for her constant encouragement, advice and guidance and valuable suggestions which was most valuable during the project. And also I like to thanks all staff members of the department for the valuable suggestions, untiring help and proper guidance for the successful completion of the project.

I would also like to thanks all the officers at the ALLAHABAD BANK. Who assisted and encouraged me during my training.

(Signature of the student)

CONTENTS

S.NO TOPICS PAGE NO

1 INTRODUCTION

2 TYPES OF PERSONAL LOANS

3 HDFC BANK-PERSONAL LOANS

4 APPLICATION AND DISBURSEMENT OF LOANS

5 CONCLUSION

BIBILOGRAPHY

CHAPTER-1

INTRODUCTION

Many times people would have experienced financial crisis. During such events they would have borrowed money from their neighbour or acquaintance. These kinds of loans which are available in banks and other financial institution are known as personal loans .A personal loan can be a secured or unsecured one depending upon the company's practices, credit history etc.

What are personal loans? What are its uses? What are the types in it? Benefits of secured and unsecured loans Who will provide personal loans? How one can avail personal loans?

Personal loan

A personal loan is a sum of money that an adult person borrows to meet his financial needs and requirements. An individual can take an easy personal loan or a guaranteed personal loan for a variety of reasons. Loans for personal debt help provide funds to purchase that dream boat or car, pay for mortgage arrears or home improvement requirements. In fact personal loans help meet most of the financial emergencies that an individual can think of.

Personal loans are often the most preferred type of loan on account of their flexibility. The two most common types of personal loans are:

Secured Loans and Unsecured Loans

Both these options are linked to the choice that one can use any fixed asset to serve as collateral to secure an easy personal loan.

Who Will Help Provide Personal Loans and How?

There are many banks and financial institutions that would help provide with easy personal loans or guaranteed personal loans. As all of them would have their own sets of terms and conditions by which they abide, it would be smart to consult with as many lending institutions before arriving at a decision of personal loan. Talk to them about the financial requirements. Check the quotes that they give. Once the formalities of taking a loan is completed, the banks would give a lump sum of money. This could be repaid over a period of time. The longer the period of repayment, the lesser the interest rate. The lenders have a duty to inform the borrowers of the rate of interest that they would be charging. Be sure to investigate whether the rate of interest charged is fixed or floating. Check with the banks also about any other prepayment penalties, and other costs incurred for securing a loan

Online Personal Loans

Loans are offered by not only lenders in the locality but also by internet lenders. They could either be directly deposited in the bank account or mailed by way of cheque. Repayments could be automatically debited from the account to suit convenience. Be sure to make payments on time, or else one may incur additional penalties. Guaranteed online personal loans come with lower rates of interest than credit cards. The first guaranteed personal loans could be a small sum; but once it is proved that payments can be made on time, it is most likely to be assured a larger sum the next time one opt for a guaranteed online personal loan.

How to apply for a personal loan

Step 1: Enquiry with a financier:

The first step is to get in touch with a lender. It is required to get in touch with as many lenders as possible and get them to make loan offers. Then negotiate with them to get the best interest rate

. Check if there are any special offers.

After getting all the banks to make their offers, select the lender based on the information given.

Step 2: Documents Collection

After finalizing the lender, the lender's direct selling agent will visit and collect documents supporting proof of income, residence proof, and identity. It may be required to produce copies of IT returns, salary slips, bank statements, ration card, passport, driving licence, and other relevant documents. These requirements vary from lender to lender.

Step 3: Field Investigation Agency Representative Visit

After submitting the documents, a field investigator will visit home to double check the facts provided in the documents, such as the place of residence, tenure at work place and so on. It is essential to be present during this visit; otherwise the investigator could report that the facts provided do not actually add up, thus forcing the lender to reject the loan application.

Step 4: Loan approved

Once the lender is satisfied with the veracity of the documents provided, the loan is approved. The lender then disburses the amount through cheques or demand drafts (DD).

Documentation

Compared to other types of loans, personal loans requires to produce the least number of documents. The necessary documents required can be classified into three: documents supporting identity, residence and income.

Identity Proof:

A copy of any of passport or driving license, voters ID, PAN card, credit card with photograph, or employee ID card with photograph. Any one of the above documents with photograph is proof that he is the same person as profess to be.

Proof of Residence:

A copy of passport, ration card, or voters ID if he reside at the same place as entered in the above-mentioned documents. If he is staying as a tenant on rent, in a place different from where he have been issued the ration card, passport, or voters ID, he can produce utility bills (electricity or telephone) of the place as proof of residence.

Income proof

The proof of income for salaried individuals differs from that of self-employed individuals. Salaried people need to submit their latest salary slip, form 16 for the last financial year, and their bank statement for the last 6 months. Self-employed people need to provide their IT returns for the last 2 years, balance sheet, and profit & loss account as proof of income.

Prime Consideration before Applying a Loan

Remember to always borrow in a responsible manner. Never borrow more than it can be repaid. Indulge in some serious shopping to seek the best rates for personal loans. By comparing the best rates for personal loans and for unsecured personal loans, a comprehensive idea of the choices offered would be got, before signing the credit agreement. Always remember to read the small print, before actually taking the step to sign on the dotted line. Whether opting for a personal loan , or a secured loan, and are actively seeking unsecured personal loan best rates, or the best rates for personal loans, it should be checked first if there are provisions for :

An early repayment fee where a redemption fee is charged if loan is repaid before the end of its term ( sometimes the fee could be as much as two month's interest, which would considerably add to the cost of your personal loan ) An arrangement fee for purposes of setting up the loan. For a break or deferment period where it is exempt from making the repayment for a specific period of time on account of some difficulty in repayment. However the interest accrued during this break period is still payable, and could be added to the outstanding loan balance.

Charges applicable before and after the personal loan

Very often we fail to read the fine print in a loan document. The real cost of personal loan is visible only when factor in numerous other charges levied. If intend to make comparisons with other types of loans, it is necessary to take into account these charges to arrive at the real cost. For example, the processing fee or prepayment fee in the case of a personal loan will be different from that of a loan against property.

Here is a list of all charges that are levied either before the loan is disbursed or through the course of the loan or when the loan is terminated:

Description of Charges:

Processing fee Prepayment fee Charges for late payment (loans) Cheque bounce charges Duplicate statements charges Documentation charges Service tax

Processing fee:

Processing fee is the amount charged by banks to cover the cost of processing the loan application. Processing fees vary from one bank to another. Some banks ask to pay the processing fee upfront even before the loan is sanctioned. This is often charged when loan application is submitted along with the supporting documents.

The processing fee is generally a percentage of the loan amount and is between 1-2 percent for personal loans. Some banks levy a flat charge of Rs 1000 or Rs 2000 upfront, and then deduct the balance processing fee (if any) from the loan amount before disbursal.

The processing fee is non-refundable. Some banks say the processing fee will be refunded if the loan is not sanctioned. It is recommended to take this in writing from the bank as technically, processing fee is non-refundable.

Pre-payment fee:

The pre-payment fee is the penalty paid by the borrower for foreclosing the loan before the actual tenure. Pre-payment fees are levied as a percentage of the outstanding principal of the loan amount. The pre-payment fee varies from bank to bank. It varies from 2-5 percent of the outstanding loan amount, if the repayment amount exceeds 25 percent of the outstanding loan amount.

Charges for late payment:

When the monthly installment (EMI) towards repayment of a loan is delayed the bank collects the installment along with late payment charges. The late payment charge is also known as the delayed payment charges or the overdue payment charges. Late payment charges are fixed at the time of signing the loan contract.

This is chargeable you make the payment after the due date. Late payment fees range from 2-3 per cent of the EMI.

Cheque Bounce Charges:

Cheque bounces mean that a cheque has been presented for clearance, but the amount written on cheque exceeds that available balance in the account. It is often colloquially referred to as a bounced cheque. Business frequently use the term dishonoured cheque. If post-dated cheques are given to the bank to debit the EMI from the customers account, it is to be ensured that there are

sufficient funds in the account every month. If a single cheque bounces, the bank charges anything from Rs 250 to Rs 500 as penalties.

Duplicate statements charge:

When the loan is sanctioned, the lender gives the customer a statement detailing the repayment schedule. If he loses it, he can request the bank to issue a duplicate statement. The statement indicates the balance loan amount and the remaining EMIs. Banks charges anywhere between Rs 100 to Rs 500 for issuing duplicate statements.

Documentation charges:

Banks levy documentation charges towards the various documents provided towards the loan application. Many banks employ third-party vendors to do the document verification. The expense on this account is usually passed on the customers, which ranges from Rs 500 or Rs 1000.

Service tax.

Service tax is a tax levied on service providers who have annual revenue of more than 8 lakh. Banks loans too fall under the purview of service tax. service tax is charged at the rate of 12.36 per cent.

Personal Loan: Eligibility Criteria:

The person eligible for a personal loan are a salaried individual, self-employed individual (own business), or a self-employed professional (doctor, lawyer, etc.). Other factors such as income, age, residence, work experience, repayment capacity, past obligations and place of work are also taken into account. A personal loan can be used for any purpose provided it is legitimate; the end use of the lender need not be mentioned

Personal Loan: Eligibility Criteria: Basics

Personal Loan eligibility calculator

Calculate the personal loan amount likely to get from the lender.

Personal Loan Eligibility Calculator for Self-Employed

If self-employed, this calculator will tell the amount of personal loan one likely to get.

Personal Loan: Interest Rates:

Interest rates charged on personal loans vary across various banks. There are primarily 3 kinds of interest rates, most commonly offered by banks are:

Fixed interest rate Floating interest rate Flat rate

Of the rates offered, flat rates can be considered the most expensive as in other cases, the reducing balance method is used for calculation. 

OBJECTIVES

To understand the types of loans provided by HDFC bank to its customers To study about personal loan disbursement by HDFC bank To know about the short term n low cost personal loan

METHODOLOGY

The study is based on secondary data The study is confined to HDFC bank only

COLLECTION OF DATA

The study is carried out using secondary data like

Internet Banking books relating to loans Banking journals

LIMITATIONS OF THE STUDY

The study is restricted only to HDFC bank The study is limited to quantitative data.

CHAPTERISATION

Chapter 1: Introduction

Chapter 2: it deals with the types of personal loans

Chapter 3: it deals with the personal loans provided by HDFC bank

Chapter 4: it deals with the application and disbursement of personal loans

Chapter 5: conclusion

CHAPTER-2

TYPES OF PERSONAL LOANS

A Personal Loan is one which is borrowed from a bank, or a building society or institution, or from any other lender as a lump sum of money. It would ideally be the best option to consolidate all of the debts into one, so that the overall amount of monthly repayments is reduced.

Short term personal loans, secured personal loans, fast cash personal loans, no credit personal loans, military personal loans, second chance personal loans, Christian lending personal loans- all these are available to a person who is looking to borrow money between one and five years. There are basically Two Types of Personal Loans. They are:

A Secured Loan .

A secured personal loan is so called due to the security or the collateral that is involved in the whole process of lending. It is

A loan that requires the consumer to provide the lender with some form of collateral or security- that is his property or his home, either mortgaged or owned- other than just his verbal assurance of repaying the loan.

In other words, it is a loan that has been secured on the borrower's assets.

Points to Remember Before Opting For A Secured Personal Loan

If the borrower agrees to a secured personal loan using his home as collateral, he should be prepared for the eventuality of forfeiting it to the lender, should he not make his loan payments and interest on time and according to the agreed terms.

The lender would sell the property to recover his money and cover any additional expenses incurred while doing so.

Before he signs up for even a small secured personal loans, the borrower has to make sure that he can afford the monthly payments. It would be in his best interest therefore to read the credit agreement terms carefully, paying special attention to the interest rate and term of the loan, the total amount that is payable, and the repayments required.

Benefits of a Secured Loan

The benefits of secured personal loans are various, the primary being:

That they can be repaid with lower monthly payment, over a longer period of time.

That the rate of interest charged on the loan would be much lower than a comparable instant unsecured personal loans, thereby making the option of a secured personal loan cost-effective. One also does not have to worry about unmanageable loan repayments terms, on account of the low interest rates. Further the personal loan could also be offering a more flexible repayment period.

That, if the borrower is the owner of a home, the chances of a lower rate of interest being charged on the loan are high, since he has secured the loan based on the strength of his assets. Failure to repay the loan would mean foreclosure or repossession of this asset by the lender, thereby greatly reducing the lender's risk. Hence, the low interest rates. On secured loans, the typical APR is 6-25%.

Secured loans are more easily available at very reasonable rates, to those with adverse credit rating that is, with a tarnished history of defaults, arrears, and bankruptcy, and to those with a poor credit record, for example, people who are self employed or those who have just changed jobs.

The borrower is allowed funding that ranges from 3000 pounds (if you want a small secured personal loan) up to 50000 pounds, and some lenders are willing to contemplate lending more. This is much more funding than an instant unsecured personal loan would allow, and where the maximum amount that one could borrow would be for a limit up to 25,000 pounds. Secured personal loans are the loans which require a large amount that could be repaid over a longer term.

The borrower could consolidate his more expensive borrowings into a single monthly repayment that is much cheaper. He could opt for a secured loan in order to consolidate debt, and to replace the high interest rate loan with a much lower one.

The easy availability of the secured personal loan is another benefit for consumers. Because of the low risk that funding a secured loan poses to its lenders, very few applications for a personal secured loan are turned down.

Another benefit would involve the flexibility of use of the secured personal loan. This type of loan could be tuned to meet the needs of any financial requirement, be it debt consolidation, home improvement.

Only when the borrower has adequately provided for its amortization, can the benefits of the secured personal loan be enjoyed. Therefore it would be smart to make preparations for the loan repayments from the very beginning, and to choose that mode of loan repayment that most suits.

Secured Personal Loans are now available in the UK, with a wide pool of lenders, especially online, so that one could browse and book the best personal secured loan vide the Internet, in terms of interest rates and other conditions

The Unsecured Personal Loans

This is a loan where

The borrower is not required to pledge any collateral, to secure the loan. It is also called a Signature Loan, as the only collateral required is the borrower's signature. This loan is based solely on the borrower's credit, can be utilized for any purpose, and does not insist upon home ownership and great credit.

Since this instant unsecured personal loans are not been secured on the assets of the borrower, the creditor has no right to these assets, should the borrower default on repayments.

However, the lender has the right to legal claims to recover his money, which may entail the borrower having to sell his assets to repay the loan.

As this loan is not secured, and as the lender's risk is consequently high, the rate of interest or APR would be higher than that charged on a personal secured loan.

The lender just may limit the unsecured personal loan to exclude certain purposes.

Useful Benefits of an Unsecured Personal Loan

There is no requirement of collateral. The borrower is not obliged to pledge his hard earned assets. Instead, he can take advantage of his credit history.

There are no financial statements or no documents of tax returns required. The borrower is not encumbered with too much paper work if he chooses to opt for instant unsecured personal loans. That is most lenders of guaranteed unsecured personal loans, offer what is called a stated loan, where the borrower's information on his financial circumstances need not be ratified by supporting financial statements or tax returns documents. This is especially advantageous for those firms or individuals whose reported financial statements are not necessarily a reflection of their true earnings.

There is no requirement of a business plan for an unsecured personal loan. Traditionally lenders require an elaborate business plan complete with pro forma's and budget. This procedure can be both costly and time consuming, with no guarantee of securing loan approval. But with unsecured personal loans there is no need for a business plan.

Quick approvals-the network of unsecured personal loan lenders would require very little time to approve the instant unsecured personal loan. There is an easy application process- most lenders of unsecured personal loans require only a one-page application.

Therefore we see that all good personal loans are a rare breed, and to be achieved with persistent effort, tact and patience- be they unsecured personal loans, instant unsecured personal loans, secured personal loans.

Fast Cash Advance Loan

Sometimes, a person may be in need of a quick payday loan, so that he could meet an unexpected money crisis. Car repair and other unexpected bills usually occur at inconvenient times. In case he does not have the extra cash to meet these unexpected expenses, he could really consider applying for a cash advance.

A Fast Cash Advance Loan:

It is similar to a bank loan only cash advances are a lot easier to qualify for, and enjoy a shorter term. Chances that the application for a bank loan may be denied are high as banks have a requirement of sufficient income, a collateral and good credit rating. It has a two week term. Therefore the loan is due along with the next paycheck. It is required that the applicant must be at least 18 years of age. The cash advance company would also be checking out /confirming the salary and employment. While the company is keen to help, it also wishes to satisfy itself that the loan repaid.

It renders eligibility to receive funds up to a maximum of $1000, with a cash advance. Some companies allow larger sums to be borrowed. Typically fast cash advance loans are due within the period of two weeks. Taking the circumstances of the borrower into consideration however, some cash advance companies would expect that at least half the loan amount will be repaid in two weeks, and the balance in a month. Such loans are called 30 Day Payday Loans. But it should be remembered that before taking such a 30 day payday loan, a company must be chosen that allows for long term loans, and assumption should not be made that all cash advance companies would give long term cash advance.

Military Personal Loans are easy for servicemen to get anytime. Military jobs involve good salaries and high status and sometimes these could complicate matters by incurring extra expenses.

A Military Payday Loan

It is offered by military loan companies to help servicemen to buy a home or a car, or any other requirement that needs higher costs. These companies offer varying types of loans, for example, bereavement loan, career service loan, disaster relief loan, that are easy and at the same time affordable. It is specifically for men and women of the military and can be got by anybody in the military, even those with bad credit history. It Can be easily obtained by vide electronic transfer, after making the application online. This is one of the biggest advantages- that a military man can get his application wherever he may be. A second advantage would be the low rate of interest.

The military man is given the choice of his own repayment schedule. If he cannot repay with one payday check, then he can do it with successive ones. If he wants cash instantly, but payday is still far, he can apply for funding of the Instant Military Payday Loan. Retired army servicemen usually apply for the fast cash loan, and retired military loans also do not discriminate between ranks of ex servicemen.

Types of Military Loans

There are Different Types of military personal loans and they include

The Disaster Relief Loan : Pioneer Military Lending , for example, helps provide funds (up to$ 1000 )for military families in times of disaster(Hurricane Katrina for instance), by simply choosing the option of Red Cross Emergency under the application's space marked for Purpose of Loan.

The Bereavement Loan: This is a 90-day interest -free military personal loan, and which guarantees approval for those military serving members having family emergencies.

Career Service Loan: These personal loans for military servicemen offers maximum loan funding of $6500 for those career military servicemen, and for second - enlistment.

Leadership VIP Loan: This loan for military personnel comes with a maximum loan amount of $ 5000, served at competitive rates of interest for officers of the military.

Premier Loan: This military personal loan provides for maximum funding of $ 7500 and once again at competitive rates of interest for servicemen and women of the military.

Senior Leadership VIP Loan: This personal loan for the military allows loan funding for up to a maximum of $10000, which is charged at competitive rates of interest for senior service members of the military.

Military Loan

To qualify for a Military Loan certain requirements are necessary. Pioneer Military Lending (an online service) for instance, requires that one must be:

An Active Duty Military Personnel to be able to qualify for a loan for military personnel A Full Time Active Reserve Personnel Retired Military Personnel with a 20Year career or A Department of Defense Military Personnel( GS-6 or above)

Advantages of Personal Military Loans

The big advantage of a payday personal loan for the military is that the military serviceman can receive the application wherever he is. Many military firms have already commenced the process of online application service, where the military service member could just download the application, fill in the form, and then send the filled out application. After approval of the personal military loan, the cash advance is sent vide electronic funds transfer. Online applications are secure, and the privacy of the online transaction is ensured. Such applications are processed with the help of a personal military loan consultant. Another advantage of these loans for military personnel would include the low interest rate charged on the loan.

The third advantage is that the military service member is given the option to choose his own repayment schedule. If he cannot afford to pay it all with one payday check, then the loan amount can be repaid with the next paycheck. In case the military man is urgently in need of cash, but payday is still far away, he could apply for an instant military payday loan. This military personal loan is a fast and convenient method to meet the financial requirements of military men and women, even those who require bad credit military personal loans. Military cash loans are available also for the retired armed forces, and not just for active military men. Retired armed forces servicemen when in urgent need of money, usually apply for a fast cash loan. Very much like the concept of instant cash payday loans, retired military personal loans also do not differentiate between the grade and rank of former servicemen of the military.

No Credit Personal Loans

For borrowers with poor credit history, this sort of No Credit Personal Loan is a blessing.

Though achievable, it should be applied for, only after extensive research. Though for the first time, this sort of loan treats borrowers with poor credit history on par with others, there is a very distinct possibility of being duped. Online, there are several lenders who offer loans with no credit checks. But it would be smart to first research all free quotes for the same, and read the fine print, before applying for funding. It is possible to find lenders who charge reasonable rates of interest, and the borrower must learn to differentiate between those lenders who charge reasonable rates and those who charge outrageous ones. Remember to match and coordinate purpose with loan term. Any loan term that extends beyond three to five years means that the loan calculations have faltered.

Second Chance Personal Loans

For those individuals who run into unplanned financial crisis, such as a sudden tragedy or any other financial contingency, a second chance personal loan with poor credit is what is required. There are many lending companies that offer a comprehensive package for those persons who require a second chance personal loan with poor credit. This type of funding can be either through securing collateral or may be unsecured. When there is valuable collateral involved, either such as real estate or home accrued equity, it is always easier to find funding for a second chance personal loan with poor credit. This is because of the protection that is offered to the lender's investment. While a second chance personal loan is difficult (banks do not like to offer second chance personal loans with poor credit loans without collateral) but not impossible to achieve, there are several lenders online that can help provide funding. Typically a lender who offers second chance personal loans with poor credit will offer higher rates of interest, shorter repayment terms, and set limits for money to be borrowed.

Short Term Personal Loans

Short Term Personal Loans can be got through banks and online financial companies, and a wide variety of other sources. With such a Short Term Personal Loan:

The rate of interest involved is usually high. This is because the period of repayment is usually for a short time. Such types of short term personal loans have to be beneficial to both the borrower and the lender, and high rates of interest are one of the ways by which a bank or a financial company stands to benefit. This type of short term funding is often utilized to help individuals who are in need of varying sums of money for a short period. Many of the lending companies usually provide for such a loan, and also stipulate the maximum amount of money that can be borrowed under such a circumstance. Banks, while giving this type of short term personal loan, usually require collateral, before disbursing the same. Online financial companies only require a credit check, but lend very small sums of money. Banks do not offer more than $15, 000 or $20, 000 dollars as well, and individuals seeking larger sums of money, would have to tap other sources for funding.

Because of the negative and positive aspects of short term personal loans, it is recommended that the individual does his research thoroughly, before he applies for funding

CHAPTER-5

Conclusion

Now a day’s personal loans have been catered to range of people unlike years ago. As various schemes of personal loans are disbursed without complex procedures, the bank must manage its working mechanism in such a way it earns a good return, where there are no defaulters . to make the customers aware of the schemes and the offers, the bank should position its brand, market analysis and the customer research. All these processes can be done only through effective and efficient management. This performance model shows how a business can be managed to earn profit. This model can be used by banks in the loan processing, by employing efficient staff in a goo banking infrastructure, the bank introduce personal loans according to the needs of their customer. It includes speed, accuracy and care attending the delivery process. The bank should have quick respond system that link information system which helps in global positioning system.

Millions of people get in financial situations where they need some money right away. Sometimes they need a loan for a medical emergency or car repairs. But some loans are more of fun. May be the borrower and his family need a long awaited vacation, borrower can acquire loans regardless of his credit if he look around. The borrower should read all the fine print and understand the terms of repayments on the loan. Some companies charges high interest rates and even penalties if it is paid back soon. A secured loan is one that is secured by things like home or other items that might equal the value of the loan. Some credit cards will gives a secured line of credit, this is a secured loan giving a credit limit with something one already own as collateral for line of credit. Secured loans are great idea if the one have bad credit and need to repair it.

BIBILOGRAPHY

WWW.APNALOAN.COM

WWW.HDFCBANK.COM

WWW.iseekloan.com