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INSTITUTE OF MANAGEMENT STUDIES
A PROJECT REPORT
ON
“Evaluation of customer satisfaction on personal loan” ( HDFC&ICICI )
Submitted bySHAMILKUMAR.Y.H.Reg No’s: MBA/08/16
2009-2010
Under the Guidance of
Mr. ROHIT C KALASKAR
INSTITUTE OF MANAGEMENT STUDIES
1
Certificate
This is to certify that the project work entitled
“Evaluation of customer satisfaction on personal loan
( HDFC&ICICI )” has been successfully carried out
by SHAMILKUMAR.Y.H. (MBA/08/16) of MBA III Tri-
Semester student, under our supervision and
guidance.
Mr. Rohit C Kalaskar External Examiner
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Sec.Gen & Professor
HET’s IMS Hubli
INSTITUTE OF MANAGEMENT STUDIES
DECLARATION
I the student studying in MBA Third Tri-semester here by declare
that the project work entitled “Evaluation of customer
satisfaction on personal loan ( HDFC&ICICI )”successfully
completed and submitted by me. Under the guidance of Rohit. C.
Kalaskar Sec Gen & Prof, HET’s INSTITUTE OF MANAGEMENT
STUDIES. This is my original work and has not been submitted earlier
to any other Institution.
The report is for the fulfillment of the Third Tri-semester MBA. The
Matter in this report is based on the data collected by me at” Evaluation
of customer satisfaction on personal loan ( HDFC&ICICI )” , in
HUBLI.
Signature
3
SHAMILKUMAR.Y.H
Place: HUBLI
Date: 17 /08/2009
INSTITUTE OF MANAGEMENT STUDIES
ACKNOWLEDGEMENT
The success of this project would be incomplete if I don’t acknowledge those
people who have really put their effort to make my project successful and worthwhile.
I take it as my pleasure and honor to express my sincere gratitude to who helped
me in complete my project and respondents, who not only gave me opportunity to do my
project in their company but also helped me a lot, For their kind support and information
required for the fulfillment of this project successfully whose guidance has made me to
learn something valuable inputs.
I am very grateful to my Prof. Rohit. C. Kalaskar for giving me an opportunity to
conduct this study.
And I sincerely thank to all the Faculty members, Respondents, who have spared their
valuable time and have provided all the information required by me.
Lastly I take this opportunity to thank again the person behind the curtain Prof.
Rohit .C. Kalaskar. whose guidance has made me to learn something valuable and gain
some experience and learning about the subject and its practicality. His concepts and
practical exposure helped me a lot and it was great pleasure and honor working under
him.
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By: SHAMILKUMAR
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TABLE CONTENTS
o Introduction
o Need for the study
o Methodology
o Data collection
o Data analysis (tools)
o Findings
o Consumer satisfaction
o Data analysis
o Questionnaires
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o Conclusion
o Reference
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Introduction and
schemes of study
Introduction: -
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
your mortgage arrears or home improvement contacted by a lender who will
help answer any and help you get the relief you seek. Once you receive your
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money it is yours for whatever purpose you need. It is important that you
pay back the money on the date set by your assigned lender. By making the
process safe and easy many people are able to get the funding they need with
no trouble. Personal Loans strives to match you up with a lender who will
look out for your needs. This is why we are on top of our.
We are a service that is dedicated to customer satisfaction in all
aspects of the payday loan process. Providing a safe process can really put
the customer at ease. There are enough hassles each day that can surround a
person.
What are personal Loans and how are they different from other:-
Many times you would have experienced financial crisis. During such events
you would have borrowed money from your neighbor 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,
Your credit history etc Have a look at more on personal loans from this
article. This article covers.
What are personal loans?
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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?
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 your 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.
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A Secured Personal Loan:-
The loan that is secured against some sort of immovable/movable
asset is known as secured loan.
This sort of guaranteed personal loans is easily available on account
of the collateral that is provided.
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Alongside; thereby making the lending institutions more
Comfortable in forwarding the loan:-
Secured personal loans involve rates of interest that are much lower
and easy options for repayment.
Due to the collateral that is provided, banks and financial institutions
usually are unperturbed by defaults in payments or by debts that are
pending.
Secured personal loans are made available to the individual within a
period of thirty days after submitting an application.
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How Does a Secured Personal Loan Benefit the Borrower
And the Lender:-1. Secured Personal Loans can be repaid over a longer period of time,
with a lower monthly payment.
2. They are cost effective on account of the low rates of interest
charged on the loan.
3. Since the loan has been secured by pledging the assets of the
borrower, the risk to the lender's investment is greatly reduced.
INSTITUTE OF MANAGEMENT STUDIES
Their easy availability is another factor. Very few loan applications for
secured loans are turned down; since the loan would be secured on the
strength of the borrower’s assets
Is an Unsecured Personal Loan A Viable Alternative To The
Secured Loan? In such a loan, the sum of money given by the bank or by the financial
institution is not secured by any collateral.
As this loan is unsecured, the lender's risk in the investment is high,
and therefore the borrower is charged a higher rate of interest than
those applying for a secured loan.
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Apart from this, the lender also conducts a thorough check on the
financial worth of the individual applying for the loan.
While the loan amounts can extend anywhere between 500 and 25,
0000 pounds, the rates of interest are higher account of the risks
involved.
These sorts of loans are usually reserved for tenants, for those persons
who do not own homes, and for those who are not in any position to
offer any collateral.
Because there is no collateral to secure these loans, lenders are usually
wary of giving large sums of money.
In case of default on the part of the borrower, then the lender would
have no option but to resort to the clauses of the credit agreement, and
approach legal aid to help recover the money.
The Benefits behind an Unsecured Personal Loan:- There is no requirement of collateral, and the borrower need not
pledge his assets to procure the loan.
There is no necessity for documents regarding the borrower's tax
returns, or for financial statements. The information on the borrower's
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Financial background need not be verified by supporting documents.
Quick approvals, and an easy application process, are other attractive
benefits of this loan.
Top of Form
Tips on the Personal Loan Process:-
Paying back your personal loan is so important. If you are confused on the
date of repayment, take the time to confirm it with your lender. Make sure
they give you a specific date! You also need to make sure you know all the
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rules the lender might have. If you take time and read through the rules they
set out, you will have a better chance of completing this process as they see
fit. When in doubt, just take your time and get answers to all the questions
you might have. Your lender will be happy you are trying to get this process
right.
Due to the globalization and privatization the cost of living is increased to
two times of the previous years and due this the life style has changed
people use to live high standard of living and attracted to glamorous life.
Competition is increased because of higher education. Investments and
proper utilization of money and time took place in people mind so they are
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taking the loans throw banks. Banks are trying to provide good service to the
customer here this study gives an idea about the customer satisfaction of
Personal loans. Today’s the world the personnel loan is so much required
because most of the people are come from middle class family but they also
want fulfill there dreams and they want personnel loan because they want
satisfied life.
Without a sound and effective banking system in India it cannot
have a healthy economy. The banking system of India should not
INSTITUTE OF MANAGEMENT STUDIES
only be hassle free but it should be able to meet new challenges posed by the
technology and any other external and internal factors. For the past three
decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to
only metropolitans or cosmopolitans in India. In fact, Indian banking system
has reached even to the remote corners of the country. This is one of the
main reasons of India's growth process. Not long ago, an account holder had
to wait for hours at the bank counters for getting a draft or for withdrawing
his own money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two days. Now
it is simple as instant messaging or dial a pizza. Money has become the
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order of the day.
Need for the study:-
This survey helps the researcher to understand that the technology in
banking as well as how its effects on costumer .The basic need of
undertaking this survey is to submit a project report to the institute as the
part of the academics.
INSTITUTE OF MANAGEMENT STUDIES
Helpful tips to get personal loans:-
The personal loan is often borrowed to meet the unforeseen expenses .But if
you have the habit of using personal loans to meet needless expenses you are
at risk .If the expense can wait till you get the required amount on your own
then what is the need of personal loan The article throws light on factors to
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be kept in mind while going personal loan way. This article covers
Questions that you should ask yourself
Types of personal loans
Factors affecting personal loans
Tips on getting best deal personal loans
Here are some very simple personal loans tips that would help you make an
INSTITUTE OF MANAGEMENT STUDIESInformed decision about the type of loan to get and who and where you
could get it from. The First Question you should be really asking yourself is:
1. Do I really need it?
2. Can I manage without a personal loan?
3. Is it for a frivolous expense- like a holiday- that I could really avoid?
4. Is it possible that I could secure the money by other means- like
Borrowing from a relative, taking up a part time job, sale of an asset?
If you can avoid it, then don't take the monkey on your back!
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A Personal Loan would vary according to certain factors:-
The amount that is to be borrowed:-
The rate of interest
Whether it is a fixed or a variable rate of interest
Loan repayment term( in months or years)
The down payment or deposit
The associated fees or costs- broker fees, prepayment fees, origination
fees.
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The insurance that the lender would require
In other words, you are buying a sum of money for more than it would cost
the lender. It would be a mistake to consider only the rate of interest before
taking a personal loan. There are also arrangements fees and penalties of
prepayment that you would have to consider. Many of the "no-fee" credit
lines carry with them a prepayment penalty. This is the way the
lender/broker makes his profit. Please work out the total expenses of your
small or big personal loan before signing up for the loan agreement.
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Personal Loans are of various types, mainly Secured Personal Loans and
Unsecured Personal Loans.
METHODOLOGY:
From 2 sources data can be collected
External sources.
Internal sources.
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This data can be classified into
Primary data
Secondary data
Primary data have been collected directly with the help of
Questioners or by survey method.
The secondary data have been collected from the internet
and Maxine’s.
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Sample Size: 100 Respondents
Sample Area: Hubli ( )
Sampling Technique: Non- probability sampling –
(Judgmental)
ANALYSIS OF DATA (TOOLS):-
The data and information obtained from the respondents are put into sp
sform. Then the data is been organized in such a way that they would yield
specific results to the objective of the study. The data is organized in the
INSTITUTE OF MANAGEMENT STUDIES
tally.
Marks and various charts, graphs & pie charts that will help to have
overview of the fact and figures. All the work is done under the data, which
is collected, form the respondents. From the process data the research loudly
speaks of its findings and implications that aid in arriving at a conclusion
A personal loan buying guide?
If you are indecisive about getting a personal loan, then you probably need a
guide to help you choose the best loans whether secured or unsecured one.
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The article enlightens you about the personal loan buying guide .Take a look
at it. This article covers
What is a personal loan buying guide?
What are the important features of a personal loan?
What are the types of loans?
Glossary of a personal loan buying guide In case you require
additional money to launch a business, or for debt consolidation, or to
pay for a vacation or for purchasing a car, opting for the ideal personal
loan- whether fast personal loans, or short term personal.
INSTITUTE OF MANAGEMENT STUDIESLoans- may be the answer. And there are banks, credit unions, building
Societies willing to fund your financial requirements in the form of secured
Loans or unsecured personal loans, and acting as your personal loan guide.
Especially many lenders specialize in personal loans to individuals with bad
Credit, so you may get approval for a loan, despite having declared
bankruptcy, or despite having county court judgments going against you
earlier.
There are varied structures to personal loans. The Important Features of a
Personal Loan are: -
The security that is required for the loan
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The APR or the rate of interest
The repayment schedule
Types of Loans:-
One of the key distinctions between the different types of personal loans is
the security that the lender requires. By security we refer to the collateral
that is offered to the bank in order to secure the loan. If you default in your
repayment schedule, the lender reserves the right to take hold of the
collateral and seize it so that he may repay the loan. Top quality collateral
would reduce the risk to the lender, who would therefore be offering the
personal loan at a much lower rate of interest. We find that individuals who
INSTITUTE OF MANAGEMENT STUDIES
have a history of adverse of credit rating or who have declared bankruptcy,
usually find it difficult to obtain a personal loan, without having to first offer
top quality collateral to secure the loan.
Unsecured Loans:-
Unsecured loans are those personal loans that are:-
Made to individuals which do not have a pre-requirement of
Collateral, as the credit quality of the individual and his financial
circumstances, are sufficient enough for the lender to provide
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Funding/credit without collateral.
We find most lenders limiting the amount of the unsecured personal
loan to less than 15,000 or 25,000 pounds, without special credit
approval.
Lenders might explicitly restrict the unsecured personal loan so as to
exclude a particular purpose- for example, starting a business.
INSTITUTE OF MANAGEMENT STUDIES
Secured Loans:-
Most secured personal loans utilize:-
The excess equity in your home, or any other properties as collateral.
But other assets are also accepted. Home equity is the nothing but the
difference between the total value of your house, and the amount of
mortgage that is outstanding on it.
It is important to note that as you are using your home as your
collateral, you are putting it at risk, if you fail to make your loan
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repayments on time, and according to the term payment schedule.
The amount of personal loan could be limited by the value of the
collateral.
The loan could be used for almost any purpose, however, and is very
often cheaper than an unsecured loan.
INSTITUTE OF MANAGEMENT STUDIES
Short Term Personal Loan:-
The features of such short term personal loans extend to
include: -
A high rate of interest, on account of the period or repayment being
for a very short term.
Banks who disburse these short term personal loans, usually insist on
collateral, but financial online companies require only a credit check
before approving the loan.
Both banks and financial companies have limits to the amount of loan
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that is to be offered, and those individuals who require larger sums,
will have to tap other sources
Sometimes you are in need of fast cash, a quick payday loan, to meet an
unexpected money crisis. This is where a fast cash advance loan comes in
handy. A fast personal loan is
Very alike a bank loan-only cash advances are for a shorter term, and
easier to qualify for.
Requires that the applicant must be at least 18 years of age.
INSTITUTE OF MANAGEMENT STUDIES
Traditionally for a two week term
There are maximum limits to the fast personal loans borrowed.
Data analysis:-
Consumer satisfaction
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
1 2 3 4 5
Series4
Series3
Series2
Series1
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The people have their account
which bank do youhave account
ICICI
HDFC
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Less document requiring:-
1
2
3
4
5
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Service providing:-
0
0.1
0.2
0.3
0.4
0.5
1 2 3 4 5 6
Series1
Series2
Series3
Series4
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Findings & Limitations:-
All experienced things can’t put on the paper.
It is conducted in open market, things tend to change rapidly.
Because of the busy schedule respondents may not have answered
properly which may not hold true in case they would have been given
lot of time to answer.
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The research was conducted in Hubli city only, so analysis and
recommendations may not be applicable to other cities.
Sample size was 100
I feel this small size cannot represent the whole consumer’s opinion
Consumer satisfaction:-
Now there are lots of private loan lenders willing to lend at a decent
rate of return.It is said that borrowing loans from private lenders is often
INSTITUTE OF MANAGEMENT STUDIESbeneficial owing to their promptness an easy procedure. But still it is
always prudent to do your own research about these private loan
providers .This article helps you to choose the best loan provider on your
own .This article brings to lightOnce the borrower has built a track record
of repayments on not only one, but on several of these types of loans, the
private investors for personal loans would be impressed at his ability to
repay, and would have usually no hesitation in funding him money for
other requirements that he would be needing later.
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When a private lender begins to trust the borrower's ability to choose
good projects that establish safe margins for him, and once the borrower
demonstrates his ability to make timely payments, the sky is the limit
with regard to procuring funds for various financial projects.
Further, word would spread among the network of private lenders of
the borrower's ability to choose the right sort of project for funding and
Other private lenders may also contact him and express an interest in his
INSTITUTE OF MANAGEMENT STUDIES
Conclusion:-
Personal loan is important for all person life because of there
Situation and condition of life and improve in their economical
Condition. In ICICI and HDFC those are giving good service
Because they are not having more legal procedure which must
helpful to the poor and middle income people.
We make the survey about the personnel loan more
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People are using the loans because of their fulfilling there
Requirements and make growth for there family.
In this survey we got that more people are from middle class, they want
to fulfills their requirements
INSTITUTE OF MANAGEMENT STUDIES
Questionnaires
1) Are you aware of the interest rate on personal loan?
1) YES
2) NO
2) Are you taken any loan?
1) Yes
2) No
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3) What is the rate of interest of your personal loan?...........
4) Which bank would you prefer for personal loan?
1) ICICI
2) IDBI
5) Which bank has less documents for personal loan?
1) ICICI
2) HDFC
INSTITUTE OF MANAGEMENT STUDIES 6) Which bank do you prefer for personal loan? 1) ICICI 2) IDBI
7) For what would you like to take personal loan…………..
8) Are documents of personal loan are customer friendly? 1) Yes 2) No
9) Are you aware of the process of personal loan?1) Yes2) No
10) Do you prefer for have single or multiple loan?
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1) Single 2) Multiple
11)do you provide any co lateral security for personal loan ?
1) Insurance policies 2) Land 3) Gold
DEMOGRAPHICS
NAME: -----------------------------------GENDER: -----------------------------AGE: ------------------------------------------QUALIFICATION: ---------------------------------------PROFESSION: ----------------------------------------------MONTHY INCOME: ---------------------------------PHONE NO: -----------------------------------------EMAIL ID: --------------------------------------------
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Reference
Internet
www.google.com
www.yahoo.com
www.rediffmail.com
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News papers
Business line
Deccan Herald
The Hindu
Books
Magazines
s
INSTITUTE OF MANAGEMENT STUDIES
THANK YOU
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