Finance Final Project-1.pdf

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PROJECTREPORT ON “TOSTUDYOFCARLOAN PROCESS” AT UNI ON BANKOFI NDI A,SANGAMNER. OF I NPARTI ALFULFI LMENTOFTHEREQUI REMENTS SAVI TRI BAIPHULEPUNEUNI VERSI TY, PUNE FOR BACHELOROFBUSI NESSADMI NI STRATI ON BY

MR. DOSHISUBODHNI TI N UNDERTHEGUI DANCEOF MR.MALANIR. J.

THROUGH SHI KSHANPRASARAKSANSTHA’ S

S. N. ARTS, D. J. MALPANICOMMERCE, B. N.SARADASCI ENCECOLLEGE, SANGAMNER. 19 1

2018

ACKNOWLEDGEMENT I tgi v esmeani mmensepl easur et oexpr esssi ncer egr at i t udet owar dsmy i nst r uct orMr .Mal aniR. J.f orhi sgui danceandconsi st entmot i v at i onwhi chi nspi r ed met ol ear nandappl yt heLoanPr ocessofCarLoan. Mostespeci al l y ,Iwoul dl i ket ot hankBr anchManagerf orgi v i ngmean oppor t uni t yt o under t ake t hi s pr oj ect i n hi s Di v i si on and f or gui dance f or under st andi ngt hepr act i cal aspect sofLoanPr ocessofCarLoan. Atl astbutnott hel east ,Iam gr eat l yi ndebt edt oal lPr of essor sandst af fat BBADepar t mentst af fatandmyf r i endswhocont r i but eddi r ect l yor i ndi r ect l yf or successf ul compl et i onoft hi spr oj ect .

DATE: PLACE:SANGAMNER

MR.DOSHISUBODHNI TI N

2

DECLARATI ON

Iher edecl ar et hatt heResear chWor kPr esent edI nThi sPr oj ectRepor t Ent i t l ed“ ToSt udyOfCarLoanProcessatUni onBankOfI ndi a, Sangamner”I sanout comeofmyOwnef f or t sundert hegui danceofMr .R. J. Mal ani &Submi t t edasaRequi r ementf ort heawar doft heBachel orI nBusi ness Admi ni st r at i on( BBA)i n( Fi nance)UnderTheFacul t yofCommer ce, Sav i t r i bai Phul e PuneUni v er si t y , PuneIAl soDecl ar et hatt hi sPr oj ectRepor tOrAnyPar tofTher ei n hasnotbeenpr ev i ousl ySubmi t t edByMet oanyot her

Pl ace: Sangamner

Dat e:

/

/

Mr . Doshi SubodhNi t i n

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I NDEX

Chapt erNo.

Par t i cul ar

PageNo.

1

Obj ect i v eOfPr oj ect

5

2

ScopeOfPr oj ect

6

3

I nt r oduct i on

7

4

Resear chMet hodol ogy

10

5

I ndust r yPr of i l e

13

6

Theor et i cal Backgr ound

15

7

Dat aAnal y si s&I nt er pr et at i on

18

8

Li mi t at i on

21

9

Fi ndi ng

22

10

Concl usi on

23

11

Suggest i on

24

12

Bi bl i ogr aphy

25

4

CHAPTERI OBJECTI VESOFTHEPROJECT · Tost udyt hecarl oanpr ocessi nt heor gani sat i on.

· Tounder st andt hepr ocedur ef ol l owedwhi l esanct i oni ngt hel oans.

· Tost udyRat eofI nt er est( ROI )andEquat edMont hl yI nst al ment( EMI )f or di f f er entcat egor i esofl oan.

· Tost udyt heal l document sr equi r edf orl oanpr ocess. · Tounder st andt hecr edi tappr ai sal ofl oanpr ocess.

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CHAPTERI I SCOPEOFTHEPROJECT · Thi spr oj ecthel psi ndet ai l under st andi ngCarl oanpr ocess. · I tgi v est hei nf or mat i onaboutpr ocedur ef ol l owedwhi l esanct i oni ngt hel oan. · I tgi v est hei nf or mat i onaboutofr equi r eddocumentf orl oanpr ocess. · Thi spr oj ecthel psi nunder st andi ngt hewor kf l owofl oanpr ocesspr oduct . · Thi spr oj ecthel psunder st andi ngt heRat eofI nt er est( ROI ) .

CHAPTERI I I I NTRODUCTI ON: 6

Uni on BankofI ndi a( UBI )wasr egi st er ed on 11 Nov ember1919 asa l i mi t ed companyi nMumbaiandwasi naugur at edbyMahat maGandhi .Att het i meofI ndi a' s I ndependencei n1947,UBIst i l lonl yhadf ourbr anches-t hr eei nMumbaiandonei n Saur asht r a, al l concent r at edi nkeyt r adecent r e.Af t erI ndependenceUBIaccel er at ed i t sgr owt handbyt het i met hegov er nmentnat i onal i zedi ti n1969,i thadgr ownt o 240br anchesi n28st at es. Shor t l yaf t ernat i onal i zat i on,UBImer gedi nBel gaum Bank,apr i v at esect orbankest abl i shedi n1930t hathadi t sel fmer gedi nabanki n 1964. I n1999t heReser v eBankofI ndi ar equest edt hatUBIacqui r eSi kki m Banki na r escueaf t erext ensi v ei r r egul ar i t i eshadbeendi scov er edatt henonschedul edbank. Si kki m Bankhadei ghtbr anchesl ocat edi nt heNor t heast , whi chwasat t r act i v et oUB andUBIbegani t si nt er nat i onalex pansi oni n2007wi t ht heopeni ngofr epr esent at i v e of f i cesi nAbuDhabi , Uni t edAr abEmi r at es, andShanghai , Peopl esRepubl i cofChi na. Thenexty ear ,UBIest abl i shedabr anchi nHongKong,i t sf i r stbr anchout si deI ndi a. Account antCat egor y ,ont heBoar dofDi r ect or sofUni onBankofI ndi a,f oraper i od of t hr eey ear sf r om t hedat eofnot i f i cat i oni . e.Apr i l16,2017,ofhi sappoi nt ment and/ orunt i l f ur t heror der s, whi chev eri sear l i er . Uni onBankofI ndi awasi naugur at edbyt heFat heroft heNat i on,Mahat ma Gandhi , onNov ember11, 1919.St ar t edasal i mi t edcompanyi nMumbai , i twasone oft hef ewFi nanci alCommer ci albanksi nI ndi a.Unt i l1947,UBIhadonl y4br anches 3i nMumbaiand1i nSaur asht r a, al lconcent r at edi nkeyt r adecent r e.Uni onBankof I ndi aunder t ookt het askofest abl i shmentofv i l l ageknowl edgecent er sandsel f empl oy mentt r ai ni ngcent er s.I twasi n1975,t hatt heUni onBankofI ndi awas nat i onal i zed. I twas,t hen,t hati tmer gedwi t ht heBel gaum Bank,apr i v at esect orbank.Anot her mer gerwasoncar dsi n1985,t hi st i mewi t ht heMi r ajSt at eBank.Uni onBanki sa Publ i cSect orUni twi t h55. 43%Shar eCapi t alhel dbyt heGov er nmentofI ndi a.The Bankcameoutwi t hi t sI ni t i alPubl i cOf f er( I PO)i nAugust20,2002andFol l ow on Publ i cOf f eri nFebr uar y2006.Pr esent l y44. 57%ofShar eCapi t ali spr esent l yhel dby i nst i t ut i ons, i ndi v i dual s. Thedawnoft went i et hcent ur ywi t nessest hebi r t hofabanki ngent er pr i separ excel l ence-uni onbankofI ndi at hatwasf l aggedof fbynoneot hert hant heFat herof 7

t heNat i on, Mahat maGandhi .Si ncet hatt hegol denmoment .Uni onBankofI ndi ahas t hi sf arunf l i nchi ngl yt r av el edt hear duousr oadt osuccessf ulbanki ngaj our neyt hat spans88y ear s.WeatUni onBankofI ndi a, r ei t er at et heobj ect i v eofouri ncept i ont o t hepr of oundt hought soft hegr eatMahat ma." Weshoul dhav e t heabi l i t yt ocar r y ona bi gbank,t omanageef f i ci ent l ycr or esofr upeesi nt hecour seofournat i onal act i v i t i es.Thoughwehav enotmanybanksamongstus,i tdoesnotf ol l owt hatwe ar enotcapabl eofef f i ci ent l ymanagi ngcr or esandt enscr or esofr upees. ” Uni onBankofI ndi ai sf i r ml ycommi t t edt oconsol i dat i ngandmai nt ai ni ngi t s i dent i t yasal eadi ng,i nnov at i v ecommer ci alBank,wi t hapr oact i v eappr oacht ot he changi ngneedsoft hesoci et y .Thi shasr esul t edi nawi degamutofpr oduct sand ser v i ces,madeav ai l abl et oi t sv al uabl ecl i ent el ei ncat er i ngt ot hesmal l estoft hei r needs. Today ,wi t hi t sef f i ci ent ,v al ueaddedser v i ces,sust ai nedgr owt h,consi st ent pr of i t abi l i t y and dev el opmentofnew t echnol ogi es,Uni on Bank has ensur ed compl et ecust omerdel i ght , l i v i ngupt oi t si mageof , “ GOODPEOPLETOBANKWI TH” Ant i ci pat i v ebanki ng-t heabi l i t yt ogauget hecust omer ' sneedswel laheadofr eal t i mef or mst hev i t ali ngr edi enti nv al uebasedser v i cest oef f ect i v el yr educet hegap bet weenexpect at i onsanddel i v er abl es. Thekeyt ot hesuccessofanyor gani z at i onl i ewi t hi t speopl e.Nowonder , Uni onBank' suni quef ami l yofabout26, 000qual i f i ed/ski l l edempl oy eesi sandev er wi l l be dedi cat ed and del i ght ed t o ser v e t he di scer ni ng cust omer wi t h pr of essi onal i sm. Uni on Bank i s a Publ i c Sect orUni twi t h 55. 43% Shar e Capi t alhel d byt he Gov er nmentofI ndi a.TheBankcameoutwi t hi t sI ni t i alPubl i cOf f er( I PO)i nAugust 20,2002andFol l ow onPubl i cOf f eri nFebr uar y2006.Pr esent l y44. 57% ofShar e Capi t ali spr esent l yhel dbyI nst i t ut i ons,I ndi v i dual sandOt her s.Ov ert hey ear s,t he Bankhasear nedt her eput at i onofbei ngat echnosav v yandi saf r ontr unneramong publ i csect orbanksi nmoder ndaybanki ngt r ends.I ti soneoft hepi oneerpubl i c sect orbanks,whi chl aunchedCor eBanki ngSol ut i oni n2002.Undert hi ssol ut i on umbr el l a,   Al lBr anchesoft heBankhav ebeen  1135net wor kedATMs,wi t honl i ne Tel ebanki ngf aci l i t ymadeav ai l abl et oi t sent i r eCor eBanki ngCust omer si ndi v i dual aswel l cor por at e. 8

I naddi t i ont ot hi s, t hev er sat i l eI nt er netBanki ngpr ov i desext ensi v e i nf or mat i onpert anni ngt oaccount sandf acet sofbanki ng.Regul arbanki ngser v i ces apar t , t hecust omercanal soav ai l ofav ar i et yofot herv al ueaddedser v i cesl i ke CashManagementSer v i ce, I nsur ance, Mut ual FundsandDemi t. TheBankwi l l ev er st r i v ei ni t sEndeav ourt opr ov i deser v i cest oi t scust omerandenhancei t s busi nessest her ebyf ul f i l l i ngi t sv i si onofbecomi ng“ Thebankoff i r stchoi cei nour chosenar eabybui l di ngbenef i ci al andl i st i ngsr el at i onshi pwi t hcust omer st hr ougha pr ocessofcont i nuousi mpr ov ement ” .

CHAPTERI V 9

RESEARCHMETHODOLOGY Dat aconsi stofst udy .Dat af or mt hebasi sofhy pot hesi sTest i ng.They ar et he basi ci nputf orconst r uct i ng measur ementscal es.The ent i r e sci ent i f i c pr ocess ofmeasur ement ,anal y si s,t est i ng and i nf er ences depends upon t he Av ai l abi l i t yofr el ev antandaccur at edat a.Dat ai spr i mar i l yoft wot y pes: DEFI NATI ON “ Resear chMet hodol ogyi sawayt osy st emat i cal l ysol v et her esear chpr obl em. I ti ncl udesnotonl yt her esear ch pr obl em,butal so t hel ogi cbehi nd usi ng t he met hods. ” Obj ect i v eofResear chMet hodol ogy 1.I text ends, v er i f i esorcor r ect sKnowl edge. 2.I thel psdev el opnewt ool , t heor i esandconcept s. 3.I thel pst obet t ercont r ol ov erev ent s. 4.I thel pst oi dent i f y i ngpr obl emsoroppor t uni t i es. 5.Resear chconduct edt hespeci f i ci nf or mat i ont hatwi l l ai di nev al uat i ngt he al t er nat i v eandi nsel ect i ngt hebestcour seofact i on

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DATACOLLECTI ONMETHODS: Met hodsofDat aCol l ect i on:

1) Pr i mar yDat a

2) Secondar yDat a

PRI MARYDATA: Dat at hati scol l ect edf ort hespeci f i cathandi scal l edasPr i mar yDat a. Thecol l ect i onofpr i mar ydat ai scost l yandt i meconsumi ng.I tcal l sf orgr eat er pl anni ngandcoor di nat i on. Col l ect i onofpr i mar ydat ar equi r esdepl oy i ngmor e manpower .I nt hat si t uat i ons wher ei ti si mpossi bl et o use t he secondar y keepi ng i nv i ew t he r equi r ement soft hest udy ,ori ncaseswher et her e i s no secondar y .cw dat a av ai l abl e, t heonl ywayouti st ocol l ectPr i mar ydat a.

Pr i mar ydat aar et hoset hatar ecol l ect edaf r eshandf ort hef i r stt i meand t hi shappent obeor i gi nali nchar act er .Ther ear esev er almet hodsofcol l ect i ng pr i mar ydat a.

1.Obser v at i onmet hod.

2.I nt er v i ewmet hod.

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SECONDARYDATA: Secondar ydat amaybedef i nedasdat at hathasbeencol l ect edear l i erf or somepur poset hant hepur poseoft hepr esentst udy .Secondar ysour cesofdat a pr ov i deaweal t hofi nf or mat i ont ot her esear cher .I tof t enobv i at est heneedof pr i mar ydat acol l ect edandsav esv al uabl et i me,ef f or tandmoney .Ev enwher e subsequentpr i mar ydat a col l ect ed i sr equi r ed;an anal y si s ofsecondar ydat a enl i ght enst her esear cherr egar di ngmanyaspect soft hest udyandgi v escont ext ual f ami l i ar i t yf orpr i mar ydat acol l ect ed.I tt huspr ov i desr i chi nsi ght si nt ot her esear ch pr ocess. Secondar ydat ameansdat at hatar eal r eadyav ai l abl et her esear cherr ef ert o dat a whi ch hav e been al r eady col l ect ed and anal y ze by anot herper son.The secondar ydat agener al l yusedar e: 1. Books. 2. I nt er net . 3. Annual Repor t s. 4. Manual s.

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CHAPTER V I NDUSTRYPROFI LE: Banki ngi nI ndi aor i gi nat edi nt hef i r stdecadeof18t hcent ur ywi t hThe Gener alBankofI ndi acomi ngi nt oexi st encei n1786.Thi swasf ol l owedbyBankof Hi ndust an.Bot ht hesebanksar enowdef unct .Theol destbanki nexi st encei nI ndi a i st heSt at eBankofI ndi abei ngest abl i shedas" TheBankofBengal "i nCal cut t ai n June1806.Acoupl eofdecadesl at er , f or ei gnbanksl i keCr edi tLy onnai sst ar t edt hei r Cal cut t aoper at i onsi nt he1850s.Att hatpoi ntoft i me, Cal cut t awast hemostact i v e t r adi ngpor t , mai nl yduet ot het r adeoft heBr i t i shEmpi r e, andduet owhi chbanki ng act i v i t yt ookr oot st her eandpr osper ed. Thef i r stf ul l yI ndi anownedbankwast heAl l ahabadBank,whi chwast he est abl i shed1865. Byt he1900s,t hemar ketexpandedwi t ht heest abl i shmentof bankssuchasPunj abNat i onalBank, i n1895i nLahor eandBankofI ndi a, i n1906, i n Mumbaibot hofwhi chwer ef oundedunderpr i v at eowner shi p.TheReser v eBankof I ndi af or mal l yt ookont her esponsi bi l i t yofr egul at i ngt heI ndi anbanki ngsect orf r om 1935.Af t erI ndi a' si ndependencei n1947,t heReser v eBankwasnat i onal i sedand gi v enbr oaderpower s. Acoupl eofdecadesl at er ,f or ei gnbankssuchasCr edi tLy onnai sst ar t ed t hei rCal cut t aoper at i onsi nt he1850s.Att hatpoi ntoft i me,Cal cut t awast hemost act i v et r adi ngpor t ,mai nl yduet ot het r adeoft heBr i t i shEmpi r e,andduet owhi ch banki ngact i v i t yt ookr oot st her eandpr osper ed.

EARLYHI STORY: Thef i r stf ul l yI ndi anownedbankwast heAl l ahabadBank, est abl i shedi n1865. Howev er ,att heendofl at e18t hcent ur y ,t her ewer ehar dl yanybanksi nI ndi ai nt he

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moder nsenseoft het er m.Att het i meoft heAmer i canCi v i lWar , av oi dwascr eat ed ast hesuppl yofcot t ont oLancashi r est oppedf r om t heAmer i cas. Somebankswer eopenedatt hatt i met of i nancei ndust r y , i ncl udi ngspecul at i v e t r adi ngi ncot t on.Wi t hl ar geexposur et ospecul at i v ev ent ur es,mostoft hebanks openedi nI ndi adur i ngt hatper i odf ai l ed.Thedeposi t or sl ostmoneyandl osti nt er est i n keepi ng deposi t s wi t h banks.Subsequent l y ,banki ng i nI ndi ar emai ned t he excl usi v edomai nofEur opeansf ornextsev er aldecadesunt i lt hebegi nni ngoft he 20t hcent . CURRENTSI TUATI ON: Cur r ent l y( 2007) ,banki ngi nI ndi ai sgener al l yf ai r l ymat ur ei nt er msof suppl y ,pr oductr angeandr eachev ent houghr eachi nr ur alI ndi ast i l lr emai nsa chal l engef ort hepr i v at esect orandf or ei gnbanks.I nt er msofqual i t yofasset sand capi t aladequacy , I ndi anbanksar econsi der edt ohav ecl ean, st r ongandt r anspar ent bal ancesheet sr el at i v et oot herbanksi ncompar abl eeconomi esi ni t sr egi on.The Reser v eBankofI ndi ai sanaut onomousbody ,wi t hmi ni malpr essur ef r om t he gov er nment .Thest at ed pol i cyoft heBankont heI ndi anRupeei st o manage v ol at i l i t ybutwi t houtanyf i xedexchanger at eandt hi shasmost l ybeent r ue. Wi t ht hegr owt hi nt heI ndi aneconomyexpect edt obest r ongf orqui t e some t i meespeci al l yi ni t s ser v i ces sect or t he demand f orbanki ng ser v i ces, especi al l yr et ai lbanki ng,mor t gagesandi nv est mentser v i cesar eexpect edt obe st r ong.Onemayal soexpectM &as, t akeov er sandassetsal es. I n Mar ch 2006,t heReser v eBankofI ndi a al l owed War bur g Pi nkst o i ncr easei t sst akei nKodakMahi ndr aBank( apr i v at esect orbank)t o10%.Thi si st he f i r stt i meani nv est orhasbeenal l owedt ohol dmor et han5%i napr i v at esect orbank si ncet heRBIannouncednor msi n2005t hatanyst akeexceedi ng5%i nt hepr i v at e sect orbankswoul dneedbr ev et t edbyt hem. Cur r ent l y ,I ndi ahas88schedul edcommer ci albanks( SCBs) 28publ i c sect orbanks( t hati swi t ht heGov er nmentofI ndi ahol di ngast ake) , 29pr i v at ebanks ( t hesedonothav egov er nmentst ake;t heymaybepubl i cl yl i st edandt r adedon st ockexchanges)and31f or ei gnbanks.Theyhav eacombi nednet wor kofov er 53, 000br anchesand17, 000ATMs. 14

Accor di ngt oar epor tbyI CRALi mi t ed,ar at i ngagency ,t hepubl i csect or bankshol dov er75per centoft ot alasset soft hebanki ngi ndust r y ,wi t ht hepr i v at e andf or ei gnbankshoodi ng18. 2%and6. 5%r espect i v el y . Thecount r yi sf l oodedwi t hf or ei gnbanksandt hei rATM st at i ons.Ef f or t s ar ebei ngputt ogi v easat i sf act or yser v i cet ocust omer s.Phonebanki ngandnet banki ngi si nt r oduced.Theent i r esy st em becamemor econv eni entandswi f t .

CHAPTERVI THEORETI CALBACKGROUND 15

Loani sacr edi tf aci l i t yorl oant akenf ort hepur poseofpur chaseanewl oan” . Loani spr ov i dedbasedont heonr oadl oanv al ue,mai nl yquot at i ongi v enbyl oan showr oom wi t ht her egi st r at i onv al ueoft hel oan.Buy ercanappl yf oral oanev en bef or ehi m sel ecthi sl oan.Thel oanamountwoul dbesanct i onedorappr ov edf or bor r ower ,based on hi sr epay mentcapabi l i t y .I nt er estr at es based sui t ed an i mpor t antf act ort hatgoesi nt oEMI[ Equat edMont hl yI nst al ment ]cal cul at i onsi st he i nt er estr at es, whi chmayv ar yf r om bank.Tobank, soappl i cantdoescompar et hem. UNI ONOFCARLOAN

• Uni onMi l esSchemei sof f er ed t oi ndi v i dual s/ f i r msf orv ehi cl ef i nancef ort hei r per sonal . ELI GI BI LI TY: I ndi v i dual sabov e18y ear sof   age.

• Permanent empl oy ee

of Cent r al / St at e/ Pol i ce For ce/ Publ i c or Joi nt Sect or

Under t aki ng/ r eput edf i r ms/est abl i shedEducat i onal I nst .

• Professi onal / Busi nessmenhav i ngr egul ari ncome. • Borrowerhas atl eastmi ni mum

ser v i ces t ol i qui dat et he l oan 1 y earpr i ort o

r et i r ement .

• Fi r ms/Compani es PURPOSE: ForPur chaseofnewt wo/ f ourwheel er s, f orper sonal orpr of essi onal use. Secondhandv ehi cl esupt o3y ear sol dal soel i gi bl e. MARGI N: -

• 15%ofonroadpri ce( ExShowr oom +r egi st r at i on+I nsur ance  +RoadTax ) . • 50%ofcostofol dv ehi cl e

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PAYMENT: -

• Fourwheel er s–amaxi mum of60mont hsi nequat edmont hl yi nst al l ment s( EMI s) . • Two  wheel er s-amaxi mum of36mont hsi nequat edmont hl yi nst al l ment s( EMI s) . • UnderTi eup: 4wheel er s amaxi mum of72( EMI s) ( Mar ut i , Hy undai , Tat aMot or s) .

·

0. 5%ofl oanamountsubj ectt omaxi mum Rs.6000.

SECURI TY: -

• Hypot hecat i onofv ehi cl ef i nancedbyt heBank. • Bank' sl i ent obegotnot edwi t ht het r anspor taut hor i t i es. · PREPAYMENTPENALTY: -

• Noprepaymentpenal t yi ft hel oani sadj ust edbyt hebor r owerf r om hi sownv er i f i abl e l egi t i mat esour cesofi ncomeorgenui nesal e.

• However2%  char gedonanav er ageo/ sbal anceofl ast12mont hsi fl oani scl osed  on t akeov erbyot herbank/ f i nanci al i nst i t ut es.

GUARANTEE: -

Guar ant eeoft hespouse.I ncaseunmar r i ed, t hi r dpar t yguar ant eewi t hmeans.  

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Li stOfDocument sToBeAt t ached: -

• Compl et edAppl i cat i onFor m. • Passportsi zephot ogr aphoft heappl i cant . • Copyofcert i f i cat ej ob. • Copyofsal ar ysl i p. • Quot at i onsofcardeal er . •I TRet ur n. • ProofofI dent i t y–PANCar d/Passpor t /Dr i v i ngLi cense. • ProofofResi dence– RecentTel ephoneBi l l /El ect r i ci t yBi l l /Pr oper t yt ax r ecei pt .

• St at ementofBankAccountf orl ast6mont hs.

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LOANAPPRAI SALPROCESS: St ep1: UNI ONBANKOFI NDI A( Subsi di ar yofuni onbank): Thi si sf i r stst epofappr ai salpr ocesst hatcust omeragr eest ot akel oanf r om uni on bankbecausehel i kel oanschemeandsat i sf yhi m. St ep2: UNI ONBANKOFI NDI A( Subsi di ar yofuni onbank): Uni onbankf i el dExecut i v egi v esal l t hecasedet ai l st ot heFi el d I nv est i gat i onForf ur t herpr ocess. Fi el dI nv est i gat i on: Ev er ycaseshoul dbef i nal i zedonl yaf t erat hr oughf i el di nv est i gat i oni s car r i edoutsot hatonl y‘ goodcust omer ’ ar eext endedf i nance. St ep3: UNI ONBANKOFI NDI A( Subsi di ar yofuni onbank) : Fi el dExecut i v ev i si t st hecust omer ’ shomeorof f i ceconduct st he Fi el dI nv est i gat i onandcol l ect sal l t henecessar ydocument swhi char e Requi r edf orl oanappr ai sal . St ep4: UNI ONBANKOFI NDI A( Subsi di ar yofuni onbank) : I nf our t hst epFi el dExecut i v esubmi t sal lt hedocument st ot heuni onbankBr anch Of f i cef ort hepur poseofkeepi ngv ar i ousr ecor ds.

19

St ep5: -

Br anchOf f i cecheckst hedocumentf orcr edi t wor t hi nessandcanAppr ov eor Rej ectt hepr oposal i t sdependsupont hef i nanci al posi t i onoft hecost umer .

Appr ov al ofPr oposal : -

Seni orFi el dExecut i v ecansanct i onupt omaxi mum ofonepowerhome/ l oan pr ocesspr oductpercl i entonl yi faut hor i zedbyBr anchManager .

Rej ect i onofPr oposal : -

Rej ect i onshoul dbecommuni cat edt ot hecust omerwi t hi nt woday saf t ert he Fi el dI nv est i gat i onRepor t( FI R) .

· OPERATI ONALGUI DELI NES: -

•Allthedetailsaskedfor,includingtheCPAloginnumber ( Logi nr egi st er / excel sheett obemai nt ai ned) .

•Incasethecustomerhasexistingrelationshipwithunionbankthencustomer I Dneedt of i l l ed( checkt hatcust omerhadear l i erappl i edf orl oan&whet her t hecasewassanct i onedorr ej ect ed) .

20

APPRAI SALNOTEOFCARLOAN: Thi snot ei sv er yi mpor t anti nal lcarl oandocument at i on.I ti sal socal l edas Cr edi tAppr ai salSy st em ‘ CAS’ .Thi s not e makes by Cr edi tManageri n Cr edi t Depar t ment .I ti ncl udesal ldet ai l sofappl i cantname,addr ess,anddeal ername,hi s per sonal of f i ci al det ai l s, EMI , andcal cul at i onofgi v enl oan. Aspermyanal y si s: ·

Kai l asJadhavhast akent hecarl oanRs. 2, 40, 000/ pay mentwi l l bemadei n Fav orofDeal erSour ci ng.Kankar i y aMot or sPv t .@14%i nt er estr at e For36mont h. Appl i canti s21y ear s&st abi l i t yi s2y ear s.Butt hi sappl i canti s46y ear s Ol d&hei swor ki ngi nRel i anceMoneyasDi .ManagerManuf act ur i ngsci nce Last4. 5y ear s.

·

Repay mentmodei sECS/ PDCf r om uni onbank.

·

Appl i canthaspur chasedAl t oModel whi chcomesundercat egor i esB. I nCASExShowr oom Pr i cei sRs. 2, 66, 515/ butaf t erext endedwar r ant y , MGKI T, RTO&I nsur anceTot al AssetVal uei sRs. 3, 02, 867/ . Appl i canthaspai dMar gi nmoneyt oDeal erRs. 62, 867/ . Bankhaspai dl oan Amountt oappl i cantRs. 2, 40, 000/ . · Cal cul at i onofEMI : Asperchar tofRat eofI nt er est( ROI )EMIf orcat egor i esC f or36mont hsi s Rs. 4000/ -f orRs. 1, 20, 000/ ForRs. 1, 20, 000/ EMIi sRs. 4, 000/ -

21

ForRs. 2, 40, 000/ EMIi s? 2, 40, 000 *4, 000=Rs. 8, 000/ 1, 20, 000. CaseNetSal ar yi sRs. 19, 856/ -

Rs. 19, 856/ - =Rs. 9928/ 2 Her eEMIi snotexceedi ng50%ofNetSal ar y . Aspert heI RR cal cul at i onsheetf orCarLoanMr .Kai l ashaspai dMar gi n . money t oDeal erRs. 62, 867/ I nI RRcal cul at i onsheetI I ri s36. 75%means. Bankgeti nt er est@14%butcust omercanseehi sI nt er estRat e12. 25%. I nt er estRat esar edi f f er ent .

CREDI TSCORI NGSHEET: As perCr edi tScor i ng Sheetbank cal cul at ed appl i cantscor es as v ar i es i nf or mat i onwhi chi si ncl udedi nt hatsheet .I nt hi ssheett ot alscor ei s100butwhen appl i cantgotmor et han50scor est henheappl i edf oracarl oan.Thi ssheeti sf or sal ar i ed/ sel fempl oy edappl i cant . · I nt hi scaseappl i canti ssal ar i edandhegot70scor esoutof100i nal l i nf or mat i on.Soappl i canthasappl i edf orCarLoan. · AsperI ncomeI nf or mat i onappl i cantNetSal ar yi sRs. 4, 24, 632/ . Sohegot s25 scor esundert hi sI nf or mat i on. · AsperLTVI nf or mat i onappl i cantgot s20scor ebecausehehasr ecei v edLTV abov e80%andbel ow90%. · AsperResi denceI nf or mat i onappl i cantgot s15scor ebecausehei sl i v i nghi s ownedhouse. · Appl i canthasonl ypostpai dmobi l enotl andl i ne.Sohegot s5scor esunder t hi sI nf or mat i on. · Appl i canti swor ki ngi nRel i anceMoneyf r om l ast4. 5y ear sbutnot5y ear s.So hegot s5scor esundert hi sI nf or mat i on.

SALARYSLI P: -

22

Asperbankdocument at i onr ul esPaySal ar ySl i pi smustbenecessar yi ncar Loan f i l epr ocessi ng.Thi ssl i pt akesf r om t heappl i cantbecauseweknow hi s f i nanci ali nf or mat i on.How muchheear nedmont hl yi ncomef r om hi sbusi ness. Whi chf aci l i t yhaspr ov i dedt oappl i cantf r om hi sOr gani sat i on.Fr om t hi si nf or mat i on managercandeci deappl i canti scapabl ef orr epay mentofal ll oanwhi chhehas t aken: · Abov ePaySal ar ySl i pweknow t hathei swor ki ngi nRel i anceMoneyasDy . ManagerManuf act ur i ngsi ncel ast4. 5y ear s. · Appl i cantgotsal ar yRs. 34,418/ i nFeb. 2010. Asperbankcondi t i onAppl i cant sal ar ymustabov eRs. 1, 00, 000/ -f orVani l l apr oduct . · I nt hi scasehi sAnnualI ncomei sRs. 2, 38, 272/ . Soappl i canti sappl i edf orcar Loan.

APPLI CATI ONFORM: I nAppl i cat i onFor m hast akenal l det ai l i nf or mat i onofappl i cant .Wecanknow f r om t hi sf or m hi sname,l oanamt ,addr essofResi dence&of f i ce,i nf or mat i onof of f i ci al &banki ng, det ai l i nf or mat i onofCo-appl i cantandmuchot heri nf or mat i on. I nt hi scaseweknowt hat : · Ki shorRam hast akent hecarl oanRs. 2,40, 000/ pay ment swi l lbemadei n f av orofDeal erSour ci ngKankar i y aMot or sPv tLt d. · Hei sl i v i nghi ssel fownedhousewi t hhi swi f eand1chi l d.Bot har edependent ont heappl i cant . · Fi r st l yappl i canthasnotanyv ehi cl e. · AnMr . AkashGupt a&Mr . MaheshShar mar ef er encehast akenf r om Rel i ance Money. bot hr ef er encesofhi sf r i ends. RESI DENCEVERI FI CATI ONREPORT: Execut i v egoest ot hatpl acewher eappl i cantact ual l ycur r ent l yl i v es.Het akes t hei nt er v i ewofappl i cantnei ghbour &askst hev ar i ousquest i onsabouthi sappl i cant . I nt hi scaseAppl i canti sl i v i ngi nsel fownedRowhouse.

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Her enei ghbourr epor thasr ecei v edposi t i v e&al li nf or mat i onhasr ecei v edf r om appl i canti sgoodsoappl i canthassanct i onedt heCarLoan. BUSI NESSVERI FI CATI ONREPORT: – Fr om t hi sr epor tweknowt heappl i cantbusi nessdet ai l si nf or mat i onl i kehi s i ndust r yname, wor kexper i ence, desi gnat i on, t y peofj obandof f i ce. I nt hi scaseweknowt hatappl i canti swor ki ngRel i anceMoneyf r om l ast4. 5 y ear s.Hi sdesi gnat i on i sDi . . . Manageri nt hatcompany .Bankst udyal ldet ai l s becauser epay mentoft hatl oan.Her eappl i cantBusi nessv er i f i cat i onRepor ti sv er y goodsohegot st hel oanf r om Uni onBank. BANKSTATEMENT: Bankt akesBankSt at ementf r om appl i cantf orpur poseofseet ohi sf i nanci al posi t i oni nbank.I nt hi scaseappl i canthasf i r st l yt akent heDi f f er entl oanf r om ot her bank&nowday shepay shi sI nst al ment , EMIChar gesf r om HDFCBank. · I n mont h ofDec. 2010 appl i cantwi t hdr aw amountf orpur pose ofEMI Rs. 11355/ , I nst al mentofRs. 4175/ &deposi thi ssal ar yRs. 35, 352/ Att hemont hofDec.hi sbal ancei sRs. 50, 112. 00/ · I n mont h ofJan. 2010 appl i cantwi t hdr aw amountf orpur pose ofEMI Rs. 11355/ -I nst al mentofRs. 4175/ &deposi thi ssal ar yRs. 35, 352/ Att hemont hofendi sbal ancei sRs. 35, 081. 00/ · I n mont h ofFeb. 2010 appl i cantwi t hdr aw amountf orpur pose ofEMI Rs. 11355/ -I nst al mentofRs. 4175/ &deposi thi ssal ar yRs.34, 418. 00/ Att hemont hofendi sbal ancei sRs. 53, 909. 25/ · Aspert hi sst at ementhi sCr edi tBal ancei smor et hanDebi tBal ance.Sowe cansayt hathi sbankst at ementi sgoodsoappl i canti sl i abl ef ort aket heCar Loan

24

CHAPTERVI I DATAANALYSI S&I NTERPRETATI ON 1)Uni onMi l es( Car )Loan Di sbur sementOfCarLoanI nLack: Year

Di sbur sementofl oan( Amt .i nl ack)

201415

4. 70

201516

45. 47

201617

23. 40

201718

27. 30

I nt er pr et at i on: Theabov egr aphshowst heper f or manceofdi sbur sementofcarl oandur i ng l astf oury ear s.I tshowst hei ncr easeofdi sbur sementofl oanwasRs.45,47, 000i n

25

201415andRs.23,40, 000i n201516decr easeofdi sbur sementofl oanwasRs.2, 70, 000i n200708andRs. 27, 30, 000i n201617r espect i v el y .

2)Uni onMi l es( Car )Loan Bor r owerofCarl oan Year

No.ofBor r ower s

201415

8

201516

130

201617

20

201718

33

I nt er pr et at i on: 26

Theabov egr aphshowsnumberofbor r ower sofcarl oandur i ngl astf our y ear s.I tshowst hehi ghl yi ncr easenoofbor r ower swas130i n200809. And decr ease numberof bor r ower s was 8,20,and 33 i n 201516 and201617 r espect i v el y

3)I nt er estr at eofcarl oan: -

Year

I nt er estr at e

201314

10. 50

201415

11. 50

201516

11. 50

201617

12. 25

27

I nt er pr et at i on: Theabov egr aphshowst heper f or manceofi nt er estr at eofcarl oandur i ngl astf our y ear s. I tshowst hei ncr easeofi nt er estr at eofl oanwas.10. 5%i n201314and11. 5i n 201415and201516ar est abl ebutaf t er201516i ncr easei nt er estr at eofl oanwas 12. 25i n201617.

CHAPTERVI I I LI MI TATI ONS: · Carl oani sv er ydi f f i cul tandt i mel ypr ocess.Soi ti si mpossi bl et ol ear nal l t hi ngsi ndet ai l i nshor tper i od. · Tost udyal ldocument sr el at i ngt ol oanpr ocessi sr equi r ef orpr oj ectand pr act i cal

Knowl edgebutor gani sat i ondonotdi scl oset hei rpr i v at e

i nf or mat i on. · Ti meconsumabl epr ocessf orcol l ect i ngdat a. · Ast hepr oj ectwasr est r i ct edper i odoft womont hhencet hedat aobt ai ned maynotbesuf f i ci entf ori nt er pr et at i on. · Thest udyi sbasedont hepastdat aandmaybenotbet r uei ndi cat oroff ut ur e per f or mance.

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CHAPTERI X FI NDI NGS ➢ I ti sf oundofUni onBankf ourt y pesofpr ov i del oan. Carl oan. ➢ Loanpr ocedur eofUni onBankofI ndi ai soft wost agessanct i onst ageand di sbur sementst age. CarLoan: Year s

Di sbur sement ( Lack)

No.Of Bor r ower

I nt er estRat e

2015

4, 70, 000

8

10. 50

2016

44, 47, 000

130

11. 50

2017

25, 40, 000

20

11. 50

2018

27, 30, 000

33

12. 25

29

➢ I ncr edi tappr ai salpr ocesst hecr edi t wor t hi nessofaper sonmeanst hathe deser v esacer t ai namountofcr edi t ,whi chmaysaf el ybegr ant edt ohi m.Such cr edi t wor t hi nessi sj udgedbyt hebankeront hebasi sofhi sChar act er ,Capaci t y andcapi t al . ➢ Todeci dewhet hert hel oanpr oposalaccept edorr ej ect edbankuset hecr edi t scor emet hod.Accept anceandr ej ect i ondeci dedbynumer ousf act or ssuchas bor r ower ’ s ear ni ngs, bor r ower ’ s out goi ng expendi t ur es, and bor r ower ’ s out st andi ngbal ancesandar r ear s, whi chi smai nl yhi ghl i ght edi nbor r ower ’ scr edi t r epor t . ➢ Def aul tmeanst hei ncapabi l i t yoft hebor r owert opayt her epay ment .Thedef aul t mayar i seduet owi t houtr eason,duet odeat hoft hebor r ower ,duet of i nanci al cr i si si nt hebusi nessoft hebor r ower , shutdownoft hebusi nessoft hebor r ower et c.

CHAPTERX CONCLUSI ON TheLoanSy st em I nI ndi aHasBeenOnTheVer geOfRi si ngDueToThe ChangeI nTheMi ndsetOfTheI ndi anPeopl e.WhoOnceWer eAf r ai dOfTal ki ng LoansOfTheyFear edThatWhatWi l l TheBanksDoI fTheMoneyI sn’ tRet ur ned Back.Nowday sThePeopl eI nI ndi aWantToI ncr easeThei rOwnSt andar dOfLi v i ng Ev enThr oughThei rFi nanci al Condi t i onsAr eWeak.ForThePur poseOfSat i sf y i ng Thei rDr eamsTheyCont actTheBankForTheLoan. Af t erDoi ngThi sPr oj ectIGotToKnowWhatAr eTheDocument sNeeded ForAnAppl i cat i onOfTheLoan.Whi chI sAVer yI mpor t antGai nWhi chIGotFr om ThePr oj ectBef or eISt ar t edThePr oj ectIHadVer yLessI nf or mat i onOfDocument Requi r ed. Thi sPr oj ectHasGi v enMeALotOfI nf or mat i onRel at edToTheLoanBy Tal ki ngToVar i ousBr anchManager sAndTheSt af f sThi sHasGi v enMeConf i dence

30

ThatTheFut ur eOfBanksI nI ndi aWi l l Ver yBr i ghtAsI nAPopul at i onOfMor eThanI Bi l l i onEv er y oneNeedsMoney .

CHAPTERXI SUGGESTI ON Dur i ngTheSur r eyI tWasFoundThatTheCust omerHadToWai tTooLong ForTheLoansToGetDi sbur sed.ThePr ocessi ngTi meI sTooLong.Cust omerHad ToWai tForThei rLoanPr ocessi ngDoneByTheSt af f .Ef f or t sShoul dBeMadeTo ReduceI t . I tWasFi ndOutThatThemeI sALotOfFor mal i t i esI nTheLoan Di sbur sementPr ocess.TooMuchDocument at i onI sDoneCust omerI sNotAwar e Al l OfTheFor mal i t i esToBeDoneWhi chHeI sAskToDoReadi ngLoanAgr eement AtTheTi meOfTaki ngLoanI sTi meConsumi ng.Ther ef orPaper wor kShoul dBe Mor eFr i endl yAndCl ear . Af t erSal esSer v i ceI sNotUpToTheMar kCust omerFaci ngPr obl emsAr e NotAt t endedOnTi me.St af fI sGener al l yCoOper at i v eOnl yAtTheTi meOfLoanI s

31

Sanct i onedAndDi sbur sed.Ther eOr eAf t erSal esSer v i ceShoul dBeI mpr ov edUpTo Sat i sf act i onLev el OfTheCust omer . Cust omerShoul dBeGi v enPr operI nf or mat i onAboutEmi .TheyAr eGener al l y NotTol dHowThei rEmi Ar eCal cul at edTheyShoul dKnowI t sCal cul at i onAndI t s Amount . Publ i cDeal i ngHour sShoul dBeI ncr easedToSomeLat erTi mePer i odBecause Maj or i t yOfTheCust omer sWer eFoundOutToBeSal ar i edI nTheSur v ey . Websi t eOfUni onBankOfI ndi a, BankShoul dBeUpdat edAndShoul dGi v e Mor eOpt i onsAndFeat ur esToCust omer sSoThatTheyCanGetMaxi mum I nf or mat i onSi t t i ngAtCarLoan. BankShoul dMakeEf f or tToAt t r actMor eAndMor eCust omer s.Thr ough I ncr easedAdv er t i sement .

CHAPTERXI I BI BLI OGRAPHY

32

•BOOK: -

• ResearchMet hodol ogy , ThakurPr akashan.

· WEBSI TE: ·

www. uni onbankof i ndi a. com

·

www. r bi . com

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