LOANSS AND ADVANCES--complete-1

8/7/2019 LOANSS AND ADVANCES--complete-1

1/93

A Study on loans and advances

INTRODUCTION TO THE CONCEPT

MEANING OF FINANCE:-

Finance may be defined as the provision of money at the time when required.

Finance refers to management of flows of money through an organization. It concerns

with the application of skills in the manipulation, use and control of money. Different

authorities have interpreted the term Finance differently. However, there are three

main approaches to finance.

1. The first approach views finance as to providing of funds needed by a business

on most suitable terms. This approach confines finance to the raising of funds

and to the study of financial institutions and instruments from where funds can

be procured.

2. The second approach relates finance to cash.

3. The third approach views finance as being concerned with rising of funds and

their effective utilization.

DEFINITION OF FINANCE:-

According to Guttmann and Dougall, business finance can be broadly defined as

the activity concerned with planning, raising, controlling and administering the funds

used in business.

In the words of Panther and Wert, Business finance deals primarily with raising,

administering and disbursing funds by privately owned business operation in non-

financial fields of industry.

SSMRV COLLEGE Page 1


2/93


According to the encyclopedia of Social Science, Corporation finance deals

with the financial problems of corporate enterprises. These problems include thefinancial aspects of the promotion of new enterprises and their administration during

early development, the accounting problems connected with the distinction between

capital and income, the administrative questions created by growth and expansion, and

finally, the financial adjustments required for the bolstering up or rehabilitation of a

corporation which as come into financial difficulties.

IMPORTANCE OF FINANCE:-

Finance is the life blood and nerve centre of business. Just as circulation of

blood is essential in the human body for maintaining life, finance is a very essential to

smooth running of the business. It has been rightly termed as Universal Lubricant,

which keeps the enterprise dynamic. No business, whether big, medium or small can

be started without an adequate amount of finance. Fight from the very beginning i.e.,

conceiving an idea to business, finance is needed to promote or establish the business,

acquire fixed assets, make investigations such as market surveys, etc, develop product,

keep men and machine at work, encourage management to

Make require further finance for making improvements or expanding the

Business.

Thus, the importance of finance cannot be over emphasized and the subject ofbusiness finance has become utmost important both to the academicians and

practicing managers.

The importance of corporation finance (which is a constituent of business

finance) has arisen because of the fact that present day business activities are

predominantly carried on company or corporate form of organization. The advent of

corporate enterprises has resulted into:-



3/93


1. The increase in size and influence of the business enterprises.

2. Wide distribution of corporate ownership and3. Separation of ownership and management.

Finance management is applicable to every type of organization, irrespective of

its size, kind or nature. It is as useful to a small concern as to a big unit. A trading

concern gets the same utility from its application as a manufacturing unit may expect.

This subject is important and useful for all types of ownership organizations. Where

there is a use or finance, financial management is helpful. Every management aims to

utilize its funds in a best possible and profitable way. So this subject is acquiring a

universal applicability.

It is indispensable in any organization as it helps in:-

1. Financial planning and successful promotion of an enterprise.

2. Acquisition of funds as and when required at the minimum possible cost.

3. Proper use and allocation of funds.

4. Taking sound financial decisions.

5. Improving the profitability through financial controls.

6. Increasing the wealth of the investors and the nation and

7. Promoting and mobilizing individual and corporate savings.

SCOPE OF FINANCE:-

The main objective of financial management is to arrange sufficient finances for

meeting short term and long term needs. These funds are procured at minimum costs

so that profitability of business is maximized. With these things in mind, a Financial

Manager will have to concentrate on the following areas of finance functions.



4/93


1. Estimating Financial Requirement:-

The first task of a financial manager is to estimate short-term and long-term financial

requirements of his business. For this purpose, he will prepare a financial plan for

present as will as for future. The amount required for purchasing fixed assets and

funds for working capital will have to be ascertained. The estimations should be

based on sound financial principles so that neither there are inadequate not excess

funds with the concern. The inadequacy of funds will adversely affect the day-to-day

working of the concern where as excess funds may attempt a management to indulge

in extravagant spending and for speculative activities.

2. Deciding Capital Structure:-

The capital structure refers to the kind and proportion of different securities of raising

funds. After deciding about the quantum of funds required it should be decided which

type of securities shouldbe raised. It may be wise to finance fixed assets through

long-term debts. Even here of gestation period is longer, then share capital may e

most suitable. Long-term funds should be employed to finance wording capital also,

if not wholly then partially. Entirely depending upon overdrafts and cash credits for

meeting working capital needs may not be suitable. A decision about various sources

for funds should be linked to the cost of raising funds. It costs of raising funds are

very high then such sources may not be useful for linked to the cost or raising funds.

If cost of raising funds is very high then such sources may not be useful for long.A decision about the kind of securities to be employed and the proportion in which

these should be used is an important decision, which influences the short-term and

long-term financial planning of an enterprise.



5/93


OBJECTIVE OF FINANCE:-

Financial management is concerned with procurement and use of funds. Its main

aim is to use business funds in such a way that the firms value/earnings are

maximized. These are various alternatives available for using business funds. Each

alternative course has to be evaluated in detail. The pros and cons of various

decisions have to look in to before making a final selection. The decisions will have

to take into consideration the commercial strategy of the business. Financial

management provides a frame work for selecting a proper course of action and

deciding a viable commercial strategy. The main objective of a business is to

maximize the owners economic welfare. The objective can be achieved by:

1. Profit maximization:-

Profit earning is the main aim of every economic activity. A business being an

economic institution must earn profit is a measure of efficiency of a business

enterprise. Profits also serve as a protection against risks which cannot be ensured.

The accumulated profits enable a business to face risks like fall in prices, competition

from other units, adverse government policies etc. thus following arguments are

advanced in favor of profits maximization as the objective of business.

a) When profit-earning is the aim of business then profit maximization

should be the obvious objective.b) Profitability is a barometer for measuring efficiency and economic

prosperity of a business enterprise, thus profit maximization is justified

in the grounds of rationality.



6/93


2. Wealth maximization:

Wealth maximization is the appropriate object of an enterprise. Financial theory

ascertains that wealth maximization is the single substitute for a stockholders utility.

When the firm maximizes the stockholders wealth, the individual stockholder can use

this wealth to maximize his individual utility. It means that by maximizing

stockholders wealth the firm is operation consistently towards maximizing

stockholders utility.

Financial decisions:

Financial decisions refer to decisions concerning financial matters of a business

firm. There are many kinds of assets to be acquitted, pattern of capitalization,

distribution of firms income etc. we can classify these decisions into three major

groups.

1. Investment decisions

1. Financial decisions

2. Dividend decisions

Investment decision relates to the determination of total amount of assets to be

held in the firm, the composition of these assets and the business risk complexions of

the firm as perceived by its investors. It is the most important financial decision. Since

funds involve cost and are available in a limited quantity, its proper utilization is very

necessary to achieve the goal of wealth capital maximization.

The investment decisions can be classified under two broad groups:

1. Long-term investment decision

2. Short-term investment decision

The long-term investment decision is referred to as the capital budgeting and the

short-term investment decision as working capital management.



7/93


The investment decision is important not only for the settings up of new units by

also for the expansion of present units, replacement of permanent assets, research anddevelopment project costs, and reallocation of funds, in case, investments made earlier

do not fetch results as anticipated earlier.

A sound short-term investment decision or working capital management policy is

on which ensures higher profitability, proper liquidity and sound structural health of

the organization.

A finance manager has to select such sources of funds, which will make optimum

capital structure. The important thing to be decided here is the proportion of various

sources in the overall capital mix of the firm. The debt-equity ratio should be fixed in

such a way that it helps in maximizing the profitability of the concern. The raising of

more debts will involve fixed interest liability and dependence upon outsiders. It may

help in increasing the return on equity but will also enhance the risk.

The rising of funds through equity will bring permanent funds to the business

but the shareholders will expect higher rate of earnings. The financial manger has to

strike a balance between various so that the overall profitability then the market prices

of the shares will go up maximizing the wealth of shareholders.

The third major financial decision relates to the disbursement of profits back toinvestors who supplied capital to the fir. The term dividend refers to that part of

profits of a company which is distributed by it among its shareholders. It is the reward

of shareholders of investment made by them in the share capital of the company. The

dividend decision is concerned with the quantum of profits to be distributed among

shareholders. A decision has to be taken whether all the profits to be distributed, to

retain all the profits in business or to keep a part of profits in the business and

distributed others among shareholders. The higher rate of dividend may raise the



8/93


market price of shares and thus, maximize the wealth of shareholders. The firm should

also consider the question of dividend stability, stock dividend (bonus shares) andcash divide



9/93


10/93


11/93


IMPORTANCE OF LOAN AND ADVANCES:-

The major portion of banks fund is employed by way of loans and advances

which is the most profitable employment of its funds Advances comprises a very large

portion of a banks total asset and form the backbone of every banks structure.

Advances not only play an important part in gross earnings of banks, but also promote

the economic development of the country. All types of business activity including

trade, industry and agriculture have to depend on bank finance in one form or the

other.

In the money lending business, the money lender must carefully consider the

chances of his being repaid by the borrower. He therefore, does not normally depend

on the obligation of the borrower alone but wants some tangible security to safeguard

his advances in case the borrower is unable to meet his obligation. He must have the

ability to judge the character and credit worthiness of his customer. A wise and

prudent policy in regard to advances in considered an important factor inspiring

confidence in the depositors and prospective customers of a bank.

Loans are repayable on the expiry of the periods for which they are granted. In

case the loan is repayable in the installments and default occurs in the payment of any

installments the entire loan usually becomes immediately recoverable at the option of

the bank.

PURPOSE OF LOANS AND ADVANCES:-

A banker enquires from the borrower the purpose of loan before lending the

loan to an individual. Banks do not grant loans for speculative purpose. They ensure

the safety and liquidity of their funds by granting loans for productive purposes where



12/93


income generation is there, banks grant loans for professionals, construction of

houses, commercial complex, etc and grants educational loans for higher studies andalso for buying of house hold articles and vehicle, besides personal loans.

Banks advances based on purpose are classified as under:-

Advances to small scale industries.

Advances to small business finance and trade to Medium and Large scale

Industries.

Advances to agriculture

Advances to transport operators.

Advances to exports and imports

Advances to agriculture, small scale Industries (SSI) and small Business Finance

(SBF) are classified as priority sector advances. These advances help to increase the

productivity and development of the nation by generating employment and revenue.

They also help in exports which earn foreign exchange. Incidentally they will

improve the standard of the people of our country.

On the other hand, if advances are given for unproductive or risky purpose such

as the financing of pleasure tour, meeting of domestic expenses, repayment of

ancestral debts, speculative purpose or anti-social purpose such as the financing

Hoarding of stocks, smuggling, etc the

Chances of failure will be more and the banker will not able to recover all his

advances or loans.

PRINCIPLES OF SOUNDING LENDING:-

The bankers follows are very cautions policy while lending his funds andconducts this business on the basis of will know principles of sound lending in order



13/93


to minimize the risks. The following principles are followed by the banking

institutions while appraising and advances proposal.

Safety

Safety first is the most crucial principle of good lending when the bankers lends, he

must feel certain that the advances is safe is that a borrower is in a position to repay

the loan along with interest according to the terms of the loan contract. If the bank

funds are not safely employed bank cannot survive. Hence the advance as for as

possible should be made only to people who care for repaying the bank loan honestly.

Insincere and dishonest people should not be given the loan. They only the bank

funds will be safer.

Liquidity

The bankers must ensure that the borrower is able to repay the loan on demand or with

in a short period in accordance with agreed terms of re-payment. This depends upon

the nature of assets owned by the borrower and pledged the banker. The source of

repayment must also be definite. The Banker regards liquidity as important as safety

because a bulk of their deposits is repayable on demand or at a short notice. If the

banker lends a large portion of his fund to borrowers from whom repayment would be

coming but slowly, the ability of the banker to meet the demands made on him would

be seriously affected in spite at the safety at the advance.

Profitability

Profitability means earning profit on the assets acquired. Assets here refer to the bank

loans and advances. The bank must employ their funds profitably so as to earn

sufficient income out of which to pay interest to the depositors, salaries to the staff

and to meet various establishment expenses and distribute dividends to the

shareholders. The sound principle of lending is not to sacrifice safety and liquidity for

the sake of higher profitability. Therefore the banks do not grant advances to unsound



14/93


parties who are doubtful in repaying, even if they accept to pay a very high rate of

interest. Such advances ultimately prove to be irrecoverable to the detriment of theinterest of the bank and its depositors.

The purpose of the loan

The purpose should be productive so that the money not only remarks safe but also

provide a definite source or repayment. While lending funds the banker enquires from

the borrower the purpose for which he seeks the loan. If the advances for

unproductive purpose like consumer credit, speculation etc, the repayment of loan

may be delayed and recovery will be slow. On the other hand if the advance is made

for productive purpose like industry, agriculture or trade, the fund will come back

quickly and without any difficulty. Thus the purpose of loan as advance is also a

guiding factor in lending.

Diversification

This is a principle of sound lending loans and advanced must spread to different

categories so that it will not concentrate on only one sector. An element of risk is

always present in every advance however secure it might appears to be. In fact, the

entire banking business is one of taking calculated risks and a successful banker an

expert is assessing such risk. He is keen in disturbing the risks involved in leading

over a large number of borrowers over a large number of industries and areas over

different types of securities. The principle of diversification is based on the famous

marks Do not keep all at the eggs in one basket it means that the banker would not

concentrate his advances in a few big fines or few industries or in few cities or regions

of the misfortune or certain trade or industries are of the bank will not be jeopardy.

Hence while lending the banker should keep in mind the concept of diversification.



15/93


Security

Another guiding factor in bank advance is security it has been the practice banks notto lend as for as possible expect against security. Security is considered as insurance

or a cushion to full back upon in case of an emergency. When the banker advances

without security he will run the risk of losing the money. If the borrower is prompt in

repayment then there will be no worry. But it is essential that the banker should have

substantial security for his advances. Banker carefully identifies the entire different

expert if an advance before granting it with sufficient security likes gold silver, stock

exchange securities, goods insurance policy etc, because he will be managing the

public money and if the confidence of the public is lost there will be run on the bank.

Hence the banker will not advance without sufficient security. The security should

cover the money advanced interest there on and other changes. Thus the banker

should also bear in mind the security principle while lending.

FORMS OF ADVANCES:-

Advances by commercial banks are made in different forms, which are short

from advances namely:

1. Loans

2. Overdrafts

3. Cash Credits

4. Discounting of bills

5. Purchasing of bills

6. Letters of credit (LC)/Bank Guarantees.

1. Loans

A loan is a financial arrangement under which an advance is granted by the bank to a

borrower on a separate account called loan account. From this account the loan

amount is paid in one lump sum to the borrower by cash or by transfer to the credit of

his current account, if any. The repayment of loan is provided in lump sum or by



16/93


installments without allowing the demand character of the loan to be affected in a way

interest is charged in the loan amount from the date of sanction. The period of loanranges from one year to ten-twelve years. A loan granted for a period at more than

one year, 2years, 5years and 7years etc., is called a Term loan if the loan is given

for still longer period, it is called long term loan.

Types of loans:

i) Secured loans

ii) Unsecured loan

I) SECURED LOANS:

According to section 5 (a) of Banking Regulation Act 1949, secured loans of

advances means a loans or advance made on the security of assets the market value of

which is not at any time less than the amount of such loan or advance.

A Banker secured his advances by stock exchange securities, goods and

documents of title of goods sometimes other securities such as real estate, plant and

machinery, gold bullion, gold ornament, life policies fixed deposits receipts, book and

supply like are also accepted as securities for loans or advances.

II) UNSECURED LOANS:

According to section (a) of Banking Regulation Act 1949, an unsecured loan or

advance means a loan or loan of advance not so secured. This are advanced for which

the banker has no collateral or tangible securities unsecured loans are also called cleanloan or advances and they are granted to the parties enjoying high reputation and

sound financial position. The loans are granted with caution and within certain limits

only because in case of default by the borrowers, the bankers rank equal with other

unsecured creditors and share equally with the letter the realized value of the assets.



17/93


18/93


19/93


20/93


21/93


In whatever form bank advances are granted they are repayable on demand or at theexpiry of some fixed period. This study on Loans and advances mainly concentrates

on how bank classify their loans according to guidelines issued by RBI. It explains

about NPA and treatment in bank. If the loans are not recovered, it will become non-

performing asset (NPA). The classification into NPA is based on recoverability and

non- recoverability of interest and installments of advancegiven which is the main

problem faced by banks. The study mainly focuses on the granting the loans and

advances in CANARA BANK.

NEED FOR THE STUDY:

Granting of loans and advances is the primary function of a bank lending

operation is one of the most important aspects of banking of all the functions of

modern banking, the lending of funds, with or without secretly is by far the most

important. About 65% of revenue arises from interest and discount derived from

advance including bills purchased land bills discounted.

The share of advances in the total assets of the bank is about 60% and is the

backbone of the banking structure. The strength of the banking system thus primarily

depends upon the soundness of the advances.

Bank lending is very much needed to the economy, for it makes possible the

financing of the agricultural and commercial activities of the country. The bulk of the

bank loans in India are provided to trade and industries. Bank loans are called agents

of indirect production. In additional to the financing of agriculture, commercial and

industrial activities, banks through their consumer loans contribute to consumption

activities- creating constant demand for consumer



22/93


goods like houses, furniture, appliance etc., thus all type of business agriculture

including trade, industry, agriculture have to depend on the bank finance in one form

or other. Hence the need for loans and advances are very important aspects

OBJECTIVES OF THE STUDY:

To analyze the need for lending.

To study the loans and advances of CANARA BANK.

To compare the position of various loans with comparison with the other

banks

To analyze the problem faced by CANARA BANK.

To find out whether the lending scheme have reached the real needy

people.

To know how the credit applicants are evaluated before granting

credit facility.

To access the level of consumer satisfaction towards the services

provided by the bank.

SCOPE OF THE STUDY:

The study was made to ascertain the customer response on CANARA

BANK loans and advances.



23/93


The study shows the evaluation and expectation of Banks loan

products.

COLLECTION OF DATA:

The data collected in this study have been classified as:

1. Primary data

2. Secondary data

1. Primary data

The methodology adopted for collecting primary data is basically the questionnaire

method the most popular among data collection techniques. This method has been

mainly employed to extract information from customers. Of course, some information

has been obtained from interviews with the bank employees and very few customers.

2. Secondary data

Sampling is a process of selecting a group of people belonging to a particular locality

or different localities and representing to population. A sampling design is a definite

plan for obtaining a sample from a given population. An integral component of the

research design is the sampling plan. The sampling procedure selected in random

sampling through the questionnaire as it involves both qualitative and quantitative



24/93


aspects. The sampling size is 50, as time is limited, and the study is based on the

survey conducted.

SAMPLE SIZE:

The sample size is the number of units that we chose for the research purpose.

The research has been conducted on a sample size of 50 respondents who have availed

Loans and Advances from the CANARA BANK and from potential customers, who

want to avail loan.

SAMPLING TECHNIQUE:

The significant component of a research study is the sampling plan. It

concentrates on 3 aspects:

Who to survey-Sampling Unit

How many to survey-Sampling Size

How to select them-Sampling procedure

Sample is the fraction of the population. Sampling is a technique or method or

selection of samples. The researcher has adopted the most appropriate technique in a

domestic research that is Simple Random Sampling.

Random sampling is a good technique when there are comprehensive lists available of

the target population

According to the simple random sampling method, it is assumed that entire population

is homogeneous and the samples are selected in such a way that each and every unit inthe population has equal chance of occurrence.



25/93


26/93


CANARA BANK

COMPANY PROFILE

Canara Bank is one of the most prominent commercial banks of India. The bank was

established in the year 1906 at Mangalore, Karnataka by a well known personality Mr.

Ammembal Subba Rao Pai. Initially, it was founded with the name Canara Bank

Hindu Permanent Fund, but later on the name was changed to Canara Bank Limited.

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal

Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a

small port in Karnataka. The Bank has gone through the various phases of its growth

trajectory over hundred years of its existence. Growth of Canara Bank was

phenomenal, especially after nationalization in the year 1969, attaining the status of a

national level player in terms of geographical reach and clientele segments. Eighties

was characterized by business diversification for the Bank. In June 2006, the Bank

completed a century of operation in the Indian banking industry. The eventful journey

of the Bank has been characterized by several memorable milestones. Today, Canara

Bank occupies a premier position in the comity of Indian banks.



27/93


28/93


BRANCHES AND ATM SERVICES

Over the years, the Bank has been scaling up its market position to emerge as a major

'Financial Conglomerate' with as many as nine subsidiaries/sponsored

institutions/joint ventures in India and abroad. As at June 2010, the Bank has further

expanded its domestic presence, with 3057 branches spread across all geographical

segments. Keeping customer convenience at the forefront, the Bank provides a wide

array of alternative delivery channels that include over 2000 ATMs- one of the highest

among nationalized banks- covering 732 centres, 2681 branches providing Internet

and Mobile Banking (IMB) services and 2091 branches offering 'Anywhere Banking'

services. Under advanced payment and settlement system, all branches of the Bank

have been enabled to offer Real Time Gross Settlement (RTGS) and National

Electronic Funds Transfer (NEFT) facilities.

PRODUCTS AND DEPOSITS SCHEMES

Some of the products of Canara Bank:

1) ATM Cheque Deposit Facility. It would enable customers to deposit cheques

through the on-site ATMs of the bank 24x7.

2) Zero balance account service, Canara Super Savings Salary Account, for

employees of government service, mid cap, large corporate, IT and ITEs companies

and SMEs.

3) Internet Purchases Service using debit card leverages Canara Bank's technological

capabilities and cost efficiencies to serve customers through internet. All debit card

holders of the bank can make internet purchases by logging on to the merchant



29/93


30/93


3) Non Fund Based Facilities

4) Advances to Agriculture, SSIs and Others

5) Government Sponsored Schemes6) Special Schemes for Women and ETC.

NRI Services

1) Deposits

2) Loans

3) Remittances

4) FOREX Branches

5) Helpline for NR

Credit Cards

1) Domestic Cards

2) Global cards

3) Debit cards

OVERVIEW

Canara Bank has a can-do attitude about banking in India. One of India's largest

banks, Canara Bank (also known as CanBank) has a network of more than 2,700

branches throughout India, in addition to branches in Hong Kong and London. All of

Canara Bank's branches -- including those located in rural areas -- are computerized,

in a country where that is not a given. The modernization of all branches allows the

bank to offer its customers networked ATMs, telebanking, internet banking, and debit

card services. Canara Bank's lending focus is on agriculture, retail, housing, and

infrastructure loans. Other services include asset management and factoring. The

financial institution is 73% owned by India's government.



31/93


AWARDS/ACCOLADE

Received during 2008-09

Conferred 'First Rank' in India's Best Banks awards under the category

'Strength and Soundness' for 2006-07 by a survey conducted by Ernst &

Young.

Best Performing Bank under Rural Employment Generation Programme,

(REGP) of Khadi and Village Industries Commission (KVIC), in South Zone

for the year 2007-08, instituted by the Ministry of MSME, Government of

India.

Golden Peacock National Training Award 2008 for excellence in training.

Global HR excellence in Training, an award conferred by the Asia Pacific

HR Congress, the largest rendezvous of HR Professionals, at its Employer

Branding Talent Management Congress held on 22nd and 23rd August 2008,

Delhi.

Best Corporate Social Responsibility Practice Award, instituted by BSE,

NASSCOM and Times Foundation.

The Bank won two Silver Corporate Collateral Awards forBest Corporate Ad

in the Print Media and Best Corporate Film on Corporate Social

Responsibility at the Public Relations Council of India Awards 2009.

Received during 2009-10

Best Bank in South Zone Award for the year 2008-09 in respect of lending

under KVIC and PMEGP Schemes. The award was handed over by

Dr.Manmohan Singh, Honble Prime Minister of India.



32/93


The Bank received the Credit Guarantee Approval Certificate issued by

CGTMSE from Shri Pranab Mukherjee, Honble Finance Minister of India.

PRODUCT PROFILE:

DIFFERENT TYPES OF LOANS AND ADVANCES GIVEN BY

CANARA BANK:

1) CANARA BANK HOME LOAN

2) CAN MOBILE(VECHILE)

3) VIDYASAGAR EDUCATIONAL LOAN

4) PERSONAL LOANS

HOME IMPROVEMENT LOAN

CANARA CASH

CANARA BUDGET

CANARA SITE LOAN

CANARA GUIDE



33/93


34/93


80% of market price of the existing house or 80% of cost of the new house to be

purchased whichever is less but invariably against the Security of new house.

8) For taking over of the existing Housing loans availed from other Banks/Other

lending Companies/Agencies.

ELIGIBILITY:

1) Salaried individuals, individuals engaged in business / professionals and self-

employed persons.

2) NRIs are also eligible to avail loans without specific permission of RBI

QUANTUM OF LOAN;

1) For salaried employees: 4 years of gross salary income.

2) For persons involved in business or self-employed individuals: 4 years of gross

yearly income

3) For Non-Resident Indians: Up to 2 years gross income and discriminatorily up

to 3 years gross income.

4) Discriminatingly, a loan amount of upto 5 years gross income/salary also

allowed

5) Rs.7.5 lacs for renovations/maintenance/extensions to the existing residential

dwelling unit/flat.

6) Discriminatorily, upto Rs.15 lacs in Urban Centres.

7) For NRIs up to 2 years' gross income and selectively up to 3 years' gross

income.



35/93


36/93


allowed. In case of outright purchases of ready built house/flat, no repayment holiday

shall be granted.

ii) For others (Other than Salaried class):

Same guidelines as applicable to Salaried class subject to maximum repayment period

of20 years or 65 years of age of the applicant whichever is earlier (inclusive of

maximum repayment holiday of 18 months in case of loans for construction and 6

months for repairs to existing houses).18 months: generally in equated Monthly

PROCESSING CHARGES:

0.50%of the loan amount minimum of Rs. 500 and max of Rs. 10,000 and no hidden

cost. No application fee. Prepayment Penalty:

2% on the outstanding liability in case of transfer of Housing Loan Accounts to other

banks/ housing finance institutions.

DOCUMENTS:

1) Stipulated Loan Application with 2 passport size photos of applicant / guarantor

2) Sale Deed

3) Agreement for Sale

4) Copy of the approved plan for the proposed construction / extension / addition

5) Detailed cost estimate / valuation report from Bank's Panel Chartered Engineer /

Architect



37/93


6) Allotment letter of Co-operative Housing Society / Apartment Owners'

Association / Housing Board / NOC from the Society / Association / Builders /

Housing Board

7) Legal Scrutiny Report, EC for the past 13 years, Property Tax paid receipt,

SKhata and permission for mortgage, wherever necessary

8) Salary Certificate and Form No.16 (in case of salaried persons)

9) IT Returns filed for the past two years (in case of non-salaried persons)

10) A brief note on the nature of business, year of establishment, type of

organization, etc.,

CAN MOBILE(VECHILE)

PURPOSE:

For buying new or used four wheeler .

ELIGIBILITY :

1) Salaried persons with qualifying income and required repayment capacity.

2) professionals and business people with qualifying income and required

repayment capacity.

3) Reputed firms and corporate are also eligible.

NEW CAR LOANS:

1) Up to 90% finance of the invoice value on a brand new car.

2) No ceiling on maximum loan amount.



38/93


USED CAR LOANS:

1) Finance used cars not older than 5 years

2) Finance 75% of the agreed price or 75% of the value of the car, as assessed by

an automobile engineer or Rs.6 lakh whichever is lower.

RATE OF INTEREST (FIXED RATE):

1) Car loan - 9.50% (fixed)

2) Interest is charged on the daily reducing balance. So you don't have to pay

interest even for a day extra on the portion repaid by you.

REPAYMENT:

In convenient Equated Monthly Instalments up to 72 months. In zero percentfinance offers, the terms are normally upto one year only. So, step into any of

our branches and drive away your dream car.

PROCESSING CHARGES:

0.1% on the loan amount with a minimum of Rs.250/- and maximum of Rs.500/-.

DOCUMENTS:

1) Stipulated Loan Application with 2 passport size photos

2) Latest salary certificate and Form No.16 / income - proof like ITAO / IT Return,

Financial Statements as the case may be

3) Performa Invoice or valuation report (as the case may be)



39/93


40/93


Payment of course fees

Purchase of books, equipments, instruments, uniform

Payment of hostel fees, examination fees, study tours

Passage expenses (for studies abroad)

QUANTUM :

For studies in India : Max. Rs.10.00 lacs

For studies abroad : Max Rs.20.00 lacs

MARGIN :

Up to to Rs.4.00 lacks - Nil

Above Rs.4.00 lacks

for studies in India : 5%

studies abroad : 15%

SECURITY :

Loan is given jointly to the student and parent /guardianAssignment of future income of the student

Upto Rs.4.00 lacs - No security

Above Rs.4.00 lacs upto Rs. 7.50 lacs - Satisfactory third party guarantee

Above Rs. 7.50 lakhs: colletral security equal to 100% of the loan amount

RATE OF INTEREST



41/93


Subject to changes as advised by Bank/RBI from time to time.

PROCESSING CHARGES:

0.1% on the loan amount subject to a minimum of Rs.100/- and maximum of Rs.250/

REPAYMENT :

To be repaid in 5 to 7 years.

Initial repayment holiday of One year both for principal & interest from the

date of completion of course or six months of getting a job whichever earlier.

Interest will be debited quarterly on simple basis during the repayment

holiday / moratorium period. After commencement of repayment,the accrued

interest is added to the principal amount and EMIs fixed on total outstanding

amount.

Penal Interest @ 2% will be charged for above 2.00 Lacs for the overdue

amount and overdue period



42/93


HOME IMPROVEMENT LOAN

Home Improvement Loan Scheme provides a packaged financial assistance to

individuals for furnishing their houses / flats at incredibly low rates of interest".

PURPOSE:

For furnishing house / flat with household furniture items, air conditioners, wardrobes,

kitchen cabinets, refrigerator, washing machine, etc.,

Can be availed along with a Housing Loan from Canara Bank OR

Separately in cases where Housing Loan is obtained from other Banks /

Financial Institutions OR Without any Housing Loans



43/93


44/93


45/93


46/93


CANARA BUDGET

A simple Personal Loan Scheme exclusively for the benefit of employees of

Corporate, PSUs, Government Departments, Institutions, etc., and also Non salaried

class like ; professional/self employed, businessmen

PURPOSE:

To meet genuine personal needs other than speculative purpose.

ELIGIBILITY:

Confirmed employees of reputed PSUs and Joint Stock Companies

Confirmed Central / State Government officials



47/93


48/93


49/93


50/93


DOCUMENTS / FORMALITIES :

Application with 2 passport size photographs

Layout/site plan issued by the development authorities.

Latest 6 months Salary Certificate/Form No.16 for salaried class and

latest

ITAO for Businessmen/professionals.

Legal Scrutiny Report form Banks panel Advocate

Allotment letter other any other evidencing purchase/allotment of sites

issued by the development authorities.

CANARA GUIDE

OBJECTIVE

Loan scheme to finance individuals possessing a valid certificate to practice asa Tax Return Preparer (TRP) as per the scheme formulated by the Ministry of

Finance, Government of India for preparation of income tax returns.

PURPOSE

Purchase of computer, Printer and other peripherals/accessories i.e., necessary

software, furniture, mobile telephone, tax books, technical literature etc.



51/93


ELIGIBILITY

Individual customers of the bank with satisfactory dealings possessing a valid

TRP Certificate. For new customers, the account should be properly introduced

to the Bank and should satisfy other eligibility norms.

LOAN QUANTUM

Need based finance with a maximum of Rs.60000/-. (Rupees Sixty thousand

only).

MARGIN

A minimum margin of 15% on project cost

REPAYMENT

Entire loan together with interest shall be repaid within 60 months in step up

EMIs, with 3 months repayment holiday.

SECURITY

Hypothecation of the assets created out of the loan & Suitable Co-obligation.

PROCESSING CHARGES

A lump sum amount of Rs.500/- (Rupees Five hundred only)

INSURANCE:

The assets created to be insured.



52/93


53/93


Ten month's pension amount or 1,00,000/- whichever is lower.

REPAYMENT :

Up to 36 months in EMIs.

SECURITY :

Co-obligation of spouse / suitable person

TEACHERS LOAN

PURPOSE:

To meet any genuine personal needs.

ELIGIBILITY:

All confirmed teaching / non-teaching staff working in a school /

college - drawing salary through our branches

QUANTUM :



54/93


6 months' gross salary or Rs.1,00,000/- whichever is less.

PROCESSING CHARGES:

1% of the loan amount with a minimum of Rs.50/- .

REPAYMENT :

Up to 60 months.

SECURITY :

Suitable co-obligation

DOCUMENTS/FORMALITIES :

Stipulated Loan Application with 2 passport size photographs

Latest Salary Certificate and Form No.16

Co-obligation where applicable

SWARANA LOAN

Let your idle gold also glitter.

Hassle-free, quick loan, co-obligation and no guarantee required.

Reasonable rate of interest

PURPOSE:

Loan against gold jewellery / ornaments.

REPAYMENT:



55/93


The entire loan is to be repaid in 24 Equated Monthly Instalments ( EMI )

ELIGIBILITY:

Credit-worthy SB Account holders with satisfactory dealings or new customers

properly introduced and credit-worthy.

QUANTUM:

Maximum Rs.2,00,000/-

DOCUMENTS & FORMALITIES:

Application for Swarana Loan

Certificate by the Jewel Appraiser (Bank will arrange)

Salary Certificate and Form No.16 / income proof

CANARA RENT

PURPOSE:

To provide loans to owners of the property to meet their business needs and / or

genuine personal needs, against rents receivable.

ELIGIBILITY:

Existing customers with satisfactory dealings.

New customers -well introduced and creditworthy



56/93


The property should have been leased / rented out to PSUs / Central / State / Govt.

undertakings, reputed corporate, financial institutions, insurance companies, MNCs

and banks including Canara Bank branch / office / quarters.

QUANTUM:

Up to 75% of the gross monthly rent receivables for the unexpired lease period

less TDS portion and advance rent collected.

SECURITY:

Equitable Mortgage of the leased property, value of which should be at least

100% of the loan amount. In exceptional cases, mortgage of alternative

property also accepted provided the value of the property is 150 % of the loan

amount.

Assignment of lease rentals in favour of the Bank.

Personal guarantee from person / s of adequate net worth acceptable to the

Bank. Waiver considered selectively.

REPAYMENT:

Maximum 60 months or unexpired period of lease which ever is earlier, by way

of EMI. Selectively up to 84 months considered.

PROCESSING CHARGES:

0.5% of loan amount.

DOCUMENTS / FORMALITIES:

Stipulated Loan Application with passport size photographs - 2 copies each



57/93


Copy of Lease Deed

Income proof of the applicant and lessees (Salary Certificate, Form No.16 /

Other proof) ITAO / IT Return / Wealth Tax Assessment Order, if available

Title deeds of the property, EC, latest tax paid receipt, Legal Scrutiny Report

Approved plan of building

Certificate of balance if finance is availed against property from any other

sources

Annual Financial Statements for the past 2 years (in case of firms and

companies)

CANARA JEEVAN

REVERSE MORTGAGE LOAN SCHEME FOR SENIOR CITIZENS

(RML)

In the present scenario, for most senior citizens and those nearing retirement the

biggest fear is the need for money to live comfortably after retirement. Reverse

mortgage loan scheme helps them to convert their dwelling house property into liquid

cash flows to meet their living expenses.



58/93


59/93


Couples will be eligible as joint borrowers and in such cases, at least one of

them should be above 60 years of age and the spouse/joint borrowershould

be more than 55 years of age. In case of jointly owned properties the joint owner who is aged above 60 years

shall be the first borrower.

Commercial property not eligible under the scheme.

DETERMINATION OF ELIGIBLE AMOUNT OF LOAN:

Depending upon the age of the borrower and the assessed value of the

property. flats/house.

Incase of independent house Minimum loan quantum Rs.5.00 lacs and

maximum Rs.50.00 lacs . (*)

Incase of flats Minimum loan quantum Rs.5.00 lacs and maximum Rs.25.00

lacs. (*)

(*) Loan amount including interest till maturity.

NATURE OF PAYMENT:

Nature of payment to be decided in advance as part of the RML covenants, as under:

Periodic payments (monthly/quarterly)

One time Lump-sum payment, not more than 20 % of the eligible loan

amount.

In case of periodic disbursement, the payments shall be made during the loan

period of 15 years or till the death of the last surviving spouse, whichever is

earlier.

Period of Loan: Maximum 15 years.



60/93


61/93


Setting up of Clinic, X-ray lab, Nursing Home, etc.

Expansion / renovation / modernisation of exiting premises

Purchase of vehicles, ambulance, computers and other essential equipments Meet working capital needs

ELIGIBILITY:

All qualified registered medical practitioners

A well established practice / experience of minimum 3 years

LOAN AMOUNT:

Maximum of Rs.10 lacs (Sub-ceiling of Rs.2 lacs for Working Capital)

Term Loan (TL):Need Based

Working Capital (WC):

25% of previous years turnover or

25% of the expected turnover of current year or

2 times the Annual Net Income or

The ceiling amount mentioned above, whichever is less

MARGIN

LOAN LIMIT BOTH TERM LOAN AND WORKING CAPITAL

Loans upto Rs.25,000/- NIL



62/93


Rs.25,001 to Rs.5,00,000 10%

Rs.5,00,001 to Rs.10,00,000 25%

SECURITY:

PRIME : Hypothecation of assets financed by the Bank :

COLLATERAL :

Loans upto Rs.2,00,000/- Existing Assets, if any

Beyond Rs.2,00,000/- Existing assets and collaterals as stipulated by the Bank

REPAYMENT :

Term Loan 5-7 years in monthly instalments / EMI Working Capital

a) OD Limit valid for one year

b) Loan repayable in 24-36 months in instalments / EMI

CANARA MORTGAGE

Discover the power of your property .... !

For meeting genuine needs - other than speculative purposes.

ELIGIBILITY:

Professionals, businessmen, salaried persons

Customers having satisfactory dealings with our bank



63/93


New customers well introduced and credit worthy with satisfactory banker's /

market reports on them.

QUANTUM :

Up to 50% on the value of the property offered as security as per the valuation

report of the bank's panel-valuer.

REPAYMENT :

Up to 60 months by way of EMI

SECURITY:

Equitable Mortgage of property acceptable to the Bank having clear marketable

title.

GUARANTEE:

Personal Guarantee from person / s of adequate net worth acceptable to the

Bank. Waiver considered selectively.

PROCESSING CHARGES:

0.5% of loan amount

DOCUMENTS / FORMALITIES :

Stipulated Loan Application with passport size photographs - 2 copies each

Copy of lease deed

Income proof of the applicant and guarantor



64/93


Income Tax Assessment Order / IT Returns

Title deeds of the property / EC, latest tax paid receipt / Legal Scrutiny Report

Approved plan of building Certificate of balance if finance is availed against property from any other

source

Annual Financial Statements for the past 2 years (in case of persons other than

salaried individual

ANALYSIS AND INTREPRETATION

Analysis

Definition:

Thetracingofthings totheirsource,andthe resolvingofknowledge intoits

original principles. Theresolving ofproblems by reducingthe conditions that arein

http://ardictionary.com/The/2611http://ardictionary.com/tracing/5576http://ardictionary.com/Of/869http://ardictionary.com/To/4489http://ardictionary.com/Their/2670http://ardictionary.com/Source/11497http://ardictionary.com/And/5818http://ardictionary.com/The/2611http://ardictionary.com/Resolving/4852http://ardictionary.com/Of/869http://ardictionary.com/Knowledge/1085http://ardictionary.com/Into/6343http://ardictionary.com/Its/7656http://ardictionary.com/Original/2312http://ardictionary.com/The/2611http://ardictionary.com/Resolving/4852http://ardictionary.com/Of/869http://ardictionary.com/By/9543http://ardictionary.com/Reducing/2480http://ardictionary.com/The/2611http://ardictionary.com/That/2574http://ardictionary.com/Are/8392http://ardictionary.com/In/1915http://ardictionary.com/The/2611http://ardictionary.com/tracing/5576http://ardictionary.com/Of/869http://ardictionary.com/To/4489http://ardictionary.com/Their/2670http://ardictionary.com/Source/11497http://ardictionary.com/And/5818http://ardictionary.com/The/2611http://ardictionary.com/Resolving/4852http://ardictionary.com/Of/869http://ardictionary.com/Knowledge/1085http://ardictionary.com/Into/6343http://ardictionary.com/Its/7656http://ardictionary.com/Original/2312http://ardictionary.com/The/2611http://ardictionary.com/Resolving/4852http://ardictionary.com/Of/869http://ardictionary.com/By/9543http://ardictionary.com/Reducing/2480http://ardictionary.com/The/2611http://ardictionary.com/That/2574http://ardictionary.com/Are/8392http://ardictionary.com/In/1915


65/93


themto equations. A syllabus,ortableofthe principal heads ofadiscourse, disposed

intheirnaturalorder.

Interpretation

Definition:

Opinion regarding a set of facts. A degree of subjectivity is involved on the

part of the individual, based on his or her experience, personality, and biases. For

example, after performing a detailed analysis of the financial statements of a

company, two financial analysts may differ in their perceptions of what the market

price of the company's stock should be.

TABLE 1

TABLE SHOWING THE AGE OF RESPONDANTS

AGE NO OF CUSTOMERS PERCENTAGE

18-25 4 8%

26-40 10 20%

41-50 28 56%

50&> 8 16%

TOTAL 50 100%

http://ardictionary.com/Them/2677http://ardictionary.com/To/4489http://ardictionary.com/A/1http://ardictionary.com/Syllabus/20517http://ardictionary.com/Or/1924http://ardictionary.com/Table/59http://ardictionary.com/Of/869http://ardictionary.com/The/2611http://ardictionary.com/Principal/11825http://ardictionary.com/Of/869http://ardictionary.com/A/1http://ardictionary.com/Discourse/6034http://ardictionary.com/Disposed/6971http://ardictionary.com/In/1915http://ardictionary.com/Their/2670http://ardictionary.com/Natural/383http://ardictionary.com/Order/2082http://ardictionary.com/Them/2677http://ardictionary.com/To/4489http://ardictionary.com/A/1http://ardictionary.com/Syllabus/20517http://ardictionary.com/Or/1924http://ardictionary.com/Table/59http://ardictionary.com/Of/869http://ardictionary.com/The/2611http://ardictionary.com/Principal/11825http://ardictionary.com/Of/869http://ardictionary.com/A/1http://ardictionary.com/Discourse/6034http://ardictionary.com/Disposed/6971http://ardictionary.com/In/1915http://ardictionary.com/Their/2670http://ardictionary.com/Natural/383http://ardictionary.com/Order/2082


66/93


ANALYSIS:

From this table we analyze that 8% of customers are from the age group of 18-25,

20% of customers are from the age group of 26-40, 56% of customers are from theage group of 41-50, and lastly 16% of customers are from the age group of 50&>

respectively. The maximum customers are from the age group of 41-50 i.e. 56% of the

customers.

INTREPRETATION:

From the above table it is clear that the all age groups between 18 to 50&> are aware

of CANARA BANK.

GRAPH 1

GRAPH SHOWING AGE PROFILE OF RESPONDENTS


18-25

8%

26-40

20%

41-50

56%

50&>

16%

AGE OF CUSTOMERS


67/93


68/93


From this above table 20% customers are from business category, 58% of customers

are from Employees category, 6% of customers are from retired category, 10% are

from students category and lastly 6% customers are from agriculture category.

INTREPRETATION:

From this above table showing occupation classification of customers, maximum

customers are of Employees category i.e. 58% of the total customers and the second

maximum are from Business category i.e. 20% of the total customers. So many of

them customers are Employees and Business men's.

GRAPH 2

GRAPH SHOWING OCCUPATIONAL CLASSIFICATION OF

CUSTOMERS


5

10

15

20

25

30

BUSINESSEMPLOYEE RETIRED STUDENTAGRICULTURE

OCCUPATION OF CUSTOMER


69/93


TABLE 3

TABLE SHOWING ASSOCIATION WITH THE BANK

NO OF YEARS NO OF CUSTOMERS PERCENTAGE

36 72%

ANALYSIS:

From the above table showing association with the bank, 8% customers are

transacting with the CANARA BANK for less than 5 years, 20% customers are

transacting with the same bank for between 5 to 15 years, and 72% customers are

transacting with the bank for more than 15years.



70/93


INTREPRETATION:

From the above table showing customers association with the bank, the maximumcustomers transacting with the bank from about more than 15 years i.e. 72% of the

total customers. The bank has many customers from many years. This is very much

advantageous to the bank.

GRAPH 3

GRAPH SHOWING ASSOCIATION WITH THE BANK


72%

ASSOCIATION WITH THE BAN


71/93


TABLE 4

TABLE SHOWING OPINION OF RESPONDENTS ABOUT THE

SATISFACTION TOWARDS THE SERVICES PROVIDED BY

CANARA BANK

NO OF

RESPONDENTS

PERCENTAGE

YES 40 80%

NO 10 20%

ANALYSIS:



72/93


73/93


74/93


From the above table showing opinion of respondents who have availed loan facility,

80% of respondents have availed the loan from the bank and 20% have not availed

any loan facility from the bank

INTREPRETATION:

From the above table showing opinion of respondents who have availed loan facility,

maximum respondents i.e. 80% have availed loan facility from the bank.

GRAPH 5

GRAPH SHOWING OPINION OF RESPONDENTS WHO HAVE

AVAILED LOAN FACILITY


0

5

10

15

20

25

30

35

40

YES NO

NO OF CUSTOMERS WHO HAVE AVAILED LOAN FACILI

NO OF CUSTOMERS

WHO HAVE AVAILEDLOAN FACILITY


75/93


TABLE 6

TABLE SHOWING TYPES OF LOAN AVAILED BY THE

CUSTOMERS

TYPES OF LOAN NO OF CUSTOMERS PERCENTAGE

HOUSE LOAN 15 38%PERSONAL LOAN 10 25%

VEHICLE LOAN 9 22%

EDUCATIONAL

LOAN

6 15%

ANALYSIS:



76/93


From the above table given, 38% of customers have availed house loan, 25% of

customers have availed personal loan, 22% of customers have availed vehicle loan,

and lastly 15% of people have availed educational loan.

INTREPRETATION:

From the above table given, the maximum customers have availed house loan i.e. 38%

of the total customers. Hence many of the customers are focused towards the property.

GRAPH 6

GRAPH SHOWING TYPES OF LOAN AVAILED BY THE

CUSTOMERS


5

0

9

0 5 10 15 20

HOUSE LOAN

PERSONAL LOAN

VEHICLE LOAN

EDUCATIONAL LOAN

TYPES OF LOANS

NO OF CUSTOMERS


77/93


TABLE 7

TABLE SHOWING OPINION OF RESPONDENTS TOWARDS THE

EASY REPAYMENT OF LOAN

OBJECTTIVE YES NO

EASY REPAYMENT

OF LOAN

43 7

PERCENTAGE 87% 13%

ANALYSIS:

From the above given table, 88% of respondents are satisfied with the easy-repayment

of loan and easier also, 12% of respondents are not satisfied with the easy repaymentof loan.



78/93


INTREPRETATION:

From the above table, maximum respondents of 88% are satisfied with the repaymentof loan. The bank should pay attention to 12% of respondent who are not satisfied

with the repayment of loan

GRAPH 7

GRAPH SHOWING OPINION OF RESPONDENTS TOWARDS THE

EASY-REPAYMENT OF LOAN


YES87%

NO

13%

EASY REPAYMENT OF LOAN


79/93


80/93


From the above table given the Maximum respondents of 70% are satisfied with the

rate of interest and the bank should pay attention to the remaining 30% of the

respondents who are not satisfied with the rate of interest.

GRAPH 8

GRAPH SHOWING OPINION OF RESPONDENTS TOWARDS THE

RATE OF INTEREST


35

15

YES

NO

YES NO

RATE OF

INTEREST35 15

RATE OF INTEREST

RATE OF


81/93


TABLE 9

TABLE SHOWING OPINION OF RESPONDENTS TOWARDS THE

REPAYMENT OF LOAN

OBJECTIVE NO OF CUSTOMERS PERCENTAGE

MONTHLY 35 70%

QUARTERLY 15 30%

ANALYSIS:

From the above given table, 70% of customers wants the repayment of loan to be done

monthly and 30% of the customers wants the repayment of loan to be done quarterly.

INTREPRETATION:



82/93


83/93


TABLE 10

TABLE SHOWING RECOMMENDATION TO FRIENDS AND

RELATIVES

OBJECTIVE YES NO

RECOMMENDATION

TO

FRIEND/RELATIVE

45 5

PERCENTAGE 90% 10%

ANALYSIS:

From the above table given, 90% of customers said that they will recommend taking

any type of loan from CANARA BANK and 10% of customers have said no.



84/93


INTREPRETATION:

From the above table given, the bank should pay attention to the less percentage of

customers who said that they will not recommend anyone to avail any types of loans.

GRAPH 10

GRAPH SHOWING RECOMMENDATIONS TO FRIENDS AND

RELATIVE


YES

90%NO

10%

RECOMMENDATION TO FRIEND/RELATIV

YES

NO


85/93


SUMMARY OF FINDINGS

The research has been conducted by the questionnaire method by considering

sample size of 50. The research reveals that the people have availed loan from the

bank, as it is the easy means of getting finance. The summary of the research

undertaken is as below:-

The study comprises of different age groups from 18 to 50&>, Maximum

respondents are from the age group of 41-50 i.e. 56% of respondents. The

second maximum respondents are from the age group of 26-40 i.e. 20% of

respondents. The third maximum respondents are from the age group of 50&>

i.e. 6% of respondents and lastly the fourth maximum respondents are from the

age group of 18-25 i.e. 8% of respondents of the sample. This shows that all

age groups between 18 to 50&> are aware of the Bank.

As we observe from the study which comprises of occupation of respondents,

the first maximum respondents are from the Employees category that forms58% of respondents. The second maximum respondents are from the business



86/93


87/93


88/93


89/93


90/93


91/93


92/93


11) Would you recommend your friend/relative to avail this loan?

YES NO

12) If NO why?

BIBILIOGRAPHY

WEBSITES:

www.wikipedia.com

www.thehindubusinessline.com

www.Canara bank.com

www.researchandmarkets.com

http://www.wikipedia.com/http://www.thehindubusinessline.com/http://www.vijayabank.com/http://www.researchandmarkets.com/http://www.wikipedia.com/http://www.thehindubusinessline.com/http://www.vijayabank.com/http://www.researchandmarkets.com/


93/93

Documents

LOANSS AND ADVANCES--complete-1