Igbs%20sip%20project%20new.docx

A SUMMER INTERNSHIP PROJECT REPORT ON

“The critically analysis customer experience with respective personal loan disbursement process.” UNDERTAKEN AT HDFC BANK, PUNE

SUBMITTED TO INDIRA GLOBAL BUSINESS SCHOOL, PUNE MBA - MARKETING BY PRATIK SAKHARE (MBA BATCH 2017-2019) UNDER THE GUIDANCE OF Prof. AATISH ZAGADE - (IGBS) MR. LOKESH PATIL (SALES MANAGER, HDFC BANK) AT

INDIRA GLOBAL BUSINESS SCHOOL, PUNE (PUNE – 410506) 1

CERTIFICATE FROM THE COMPANY

This is to certify that Mr. Pratik Ashok Sakhare student of MBA from Indira Global Business School, Pune has satisfactorily completed his project work entitled “The critically analysis customer experience with respective personal loan disbursement process” at HDFC BANK Ltd. in Department of Personal Loan from 19th May 2018 to 20th July 2018.

Authorized signature and seal

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COLLEGE CERTIFICATE

This is to certify that Pratik Ashok Sakhare , a bonafide student of Indira Global Business School, Pune pursuing Masters of Business Administration course of 20172019 Batch. He has successfully completed his Summer Project titled “The critically analysis customer experience with respective personal loan disbursement process.” at, from 19th May 2018 to 20th July 2018. To the best of our knowledge no part of this work has been submitted towards fulfillment of requirement of any degree or has been published before. We wish him all the best for his future endeavors.

Dr. Virendra Tatke Director, Indira Global Business School Pune.

Prof Aatish Zagade Internal Project Guide, Indira Global Business School Pune.

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ACKNOWLEDGEMENT “The completion of any project depends upon the co-operation, coordination and combined efforts of several resources of knowledge, inspiration & energy”. I always knew that in an organization, the work atmosphere yields enormously on an individual’s productivity and quality of work, the competence and expertise of people around me at HDFC bank Pune was a factor that motivated me to strive and achieve nothing short of perfection. I owe a great many thanks to all those, without whom this project wouldn’t have been as much a learning experience and as successful. To those, who helped and supported me during the course of this project. My deepest sense of gratitude for the Faculty-in-Charge, Prof. Aatish zagade, IGBS Pune, for constant guidance, professional help and support during the course of the project, for guiding me and helping me at all times during the project. He was the key inspirer for me and without his guidance this project would have been a distant reality. I express my thanks to the Company Guide, Mr. Lokesh Patil(Sales Manager Personal Loan) HDFC bank for extending his support and guidance for this project. Thanks and appreciation to the helpful people at bank Branch, for their support. I am hereby thankful to Mr. Shiv Poojan Singh (Branch Manager- Chinchawad) HDFC bank for his Support and Guidance in this Project. I thank my colleagues and friends for providing constant encouragement and help. I am indebted to them for their timely help & the enthusiasm they expressed in helping me bring this project to the fruitful end. Henceforth I would also like to extend my sincere token to our Director, “Dr. Virendra Tatke sir” for his relentless spirit to lend a helping hand to the students. I am highly grateful to Indira Global Business School, Pune for their benevolent assistance. Date: 25th JULY, Place: Pune, Maharashtra

PRATIK SAKHARE (MBA17032 MARKETING)

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EXECUTIVE SUMMARY TITLE: “The critically analysis customer experience with respective personal loan disbursement process.” INDUSTRY: Banking and financial sector. COMPANY:

HDFC Bank Ltd.

OFFICE-LOCATION: Pune

 OBJECTIVES OF THE PROJECT: 1) To study the customer experience while personal loan disbursement process. 2) To understands the problems of customers regarding disbursement process. 3) Analysis of customer who have taken personal loam from HDFC bank.

 IMPORTANCE OF THE PROJECT: The summer Project was done to study and carry out the marketing activities used by HDFC Bank for Personal loan segment. The basic idea behind doing this project was to have the understanding of how credit companies works. As Credit Companies are constantly raising the bar for the industry to provide consumers with the fastest and most effective service. Not just one but all banks also seem to constantly innovate and provide their customers with improved service. The project thus focused mainly on the lead generation of the company’s product called Personal Loan to most of the Existing Customers of HDFC bank, Potential Customers, and customers of other banks, existing loan holders of HDFC bank. So, my Purpose in the bank was to get more leads through both Primary as well as Secondary sources. The outline of the project hence is to how to create an awareness of the services and loan products of HDFC bank to the customers. Also how often it is preferred as compared to other competitive brands in the market by the customers.

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 METHODOLOGY ADOPTED: A research method is a systematic plan for conducting research. Sociologists draw on a variety of both qualitative and quantitative research methods, including experiments, survey research, participant observation, and secondary data. Quantitative methods aim to classify features, count them, and create statistical models to test hypotheses and explain observations. Qualitative methods aim for a complete, detailed description of observations, including the context of events and circumstances. The research methodology includes the various methods and techniques for conducting a research. Research is an art of scientific investigation.



RESEARCH DESIGN:

Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data was a descriptive research. Descriptive research involves collecting numerical through self-reports collected, through questionnaires or interviews (person or phone), or through observation. For present study, the research was descriptive and conclusion oriented.



TYPES OF RESEARCH:

1. Basic Research 2. Applied Research 3. Exploratory Research 4. Quantitative Research 5. Qualitative Research 6. Descriptive Research 

RESEARCH DESIGN USED:

In the project both primary and secondary data were used

Primary data: For the purpose of primary data I directly interacted with the Customers by cold calling and also some of the customers who visited branch and tried to collect as much information as possible.

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

Secondary data: For the purpose of secondary data I used the information available at the bank’s website, circulars, journals and other online materials.

 FINDINGS AND ACHIEVEMENTS: (I) INTERPRETATION ON STUDY THE CUSTOMER EXPERIENCE WHILE PERSONAL LOAN DISBURSEMENT PROCESS  Nowadays, personal loan is in great demand as it is a feasible way of financing a wide variety of needs, right from planning a holiday to renovating your home, personal loans are the best option to ensure cash flow at difficult times.  A lot of lending organizations offer easy and affordable personal loan solutions to customers.  However, there still remains a spiral of confusions when it comes to the disbursal process.  Customer satisfaction is important to the any organization..  The actual amount of loan disbursed may differ from the amount sanctioned as per the agreement.  The sanction letter is only an intimation from the lender that you are eligible for a particular loan, subject to certain conditions

(II) INTERPRETATION:  More number of Customers of Personal loan in HDFC Bank holds job in private organizations as compared to government organization.  Customers from Government organization are 4% while from Private Organization is 96%. 

ACHIEVEMENTS FOR LIVE PROJECT: 



PHASE 1:

In my Phase-1 of project I did a total sale of Rs. 1621269 and contributed towards the monthly target of Personal loan segment for my Branch.



During my Phase-2 project I successfully visited government offices and corporate offices in the Pune area for activity, I pitch the personal loan and home loan to the staff of the offices and generated near about 15 leads

PHASE-2:

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

PHASE-3: 

I did survey on customer experience while the process on loan disbursement.

On combining all of the three phases of my project the TOTAL SALE which I contributed to the Personal Loan target of my Branch is RS 6691269.

 KEY LEARNINGS FROM THE PROJECT: 

Got the Brief idea about the Disbursement of Personal Loan, starting from document collection to the disbursement of loan amount into the customer’s account



Understood how to pitch the product to the Customers while doing a cold calling for a sale of financial product called Personal loan.



Convincing the Customers to take interest in our product and avail the service of Personal loan from HDFC Bank by focusing on the benefits it will provide to the customers. .



Got to understand that the Customer relationship is one of the key success factor in sales, also worked upon in maintaining the relationship with Customers while doing sales of Personal Loan.



Understood the Marketing and Promotional activities used by Banks to promote their Products and services.



Taking Follow-ups from the interested customers is one of the important task after generating lead as it gives the maximum success in sales.

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INDEX SERIAL NO.

CONTENT

Page No.

1.

Introduction

12-14

2.

Industry /company overview

15-29

3.

Objectives

4.

Literature review

31-33

5.

Research methodology

34-35

6.

Data analysis and interpretation

36-48

7.

Conclusion/learning

8.

Recommendations/contribution

50-51

9.

Appendix

52-58

10.

Reference

59

30

49

9

List of Tables Serial

Table No.

Content

Page No.

Table

Age of Respondents

23

Gender

24

Factors for customer freindly environment for personal loan

25

Factors Considered during Processing and Disbursing

26

Table

Factor Important for customer during selection of Personal

27

No.5

loan

Table

Terms and condition during personal loan

No 1

No.1 2

Table No.2

3

Table No.3

4

Table No.4

5

6

28

No.6

10

List of Figures Serial

Figure No.

Content

Page No.

1

Figure No.1

Age of Respondents

23

2

Figure No.2

Gender

24

3

Figure No.3

Factors for customer freindly environment for personal

25

No

loan 4

Figure No.4

Factors Considered during Processing and Disbursing

26

5

Figure No.5

Factor Important for customer during selection of Personal

27

loan 6

Figure No.6

Terms and condition during personal loan

28

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Chapter-1 INTRODUCTION A Personal loan is credit that individuals can apply for and get from a bank or finance company to customers for any purpose such as wedding expenses, purchasing jewelry or gold, and vacations. Similar to credit cards, these loans will usually have predetermined interest rates. Through this section of introduction to personal loans we will go through all information you will need if thinking about taking out a personal loan.

Lead Generation It is a Process of making the potential Customer in the market aware about the concerned product, so that the company gets to achieve its profit and also generate maximum revenue with a maximum sale.

Purpose/Significance of study As mentioned above, the project focused mainly on the lead generation of the company’s product called Personal Loan to most of the Existing Customers of HDFC bank, Potential Customers, and customers of other banks, existing loan holders of HDFC bank. So, my Purpose in the bank was to get more leads through both Primary as well as Secondary sources. The project was done with the help of the data or information provided by the company and on that basis I had undergone cold calling and also the task was to convince more and more customers for availing Personal loan.

Outline of the Project Report Credit Companies are constantly raising the bar for the industry to provide consumers with the fastest and most effective service. Not just one but all banks also seem to constantly innovate and provide their customers with improved service. Banking industry is becoming competitive as they are establishing their own network to reach customers. They are providing different banking services which are useful for customers in various requirement. The outline of the project hence is to how to create an awareness of the services and loan products of HDFC bank to the customers. Also how often it is preferred as compared to other competitive brands in the market by the customers. 12

Who Will Help Provide Personal Loans and How? There are many banks and financial institutions that would help provide with easy personal loans or guaranteed personal loans. As all of them would have their own sets of terms and conditions by which they abide, it would be smart to consult with as many lending institutions before arriving at a decision of personal loan. Talk to them about the financial requirements. Check the quotes that they give. Once the formalities of taking a loan is completed, the banks would give a lump sum of money. This could be repaid over a period of time. The longer the period of repayment, the lesser the interest rate. The lenders have a duty to inform the borrowers of the rate of interest that they would be charging. Be sure to investigate whether the rate of interest charged is fixed or floating. Check with the banks also about any other prepayment penalties, and other costs incurred for securing a loan Online Personal Loans Loans are offered by not only lenders in the locality but also by internet lenders. They could either be directly deposited in the bank account or mailed by way of cheque. Repayments could be automatically debited from the account to suit convenience. Be sure to make payments on time, or else one may incur additional penalties. Guaranteed online personal loans come with lower rates of interest than credit cards. The first guaranteed personal loans could be a small sum; but once it is proved that payments can be made on time, it is most likely to be assured a larger sum the next time one opt for a guaranteed online personal loan.

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 How to apply for a personal loan Step 1: Enquiry with a financier: The first step is to get in touch with a lender. It is required to get in touch with as many lenders as possible and get them to make loan offers. Then negotiate with them to get the best interest rate . Check if there are any special offers. After getting all the banks to make their offers, select the lender based on the information given. Step 2: Documents Collection After finalizing the lender, the lender's direct selling agent will visit and collect documents supporting proof of income, residence proof, and identity. It may be required to produce copies of IT returns, salary slips, bank statements, ration card, passport, driving license, and other relevant documents. These requirements vary from lender to lender. Step 3: Field Investigation Agency Representative Visit After submitting the documents, a field investigator will visit home to double check the facts provided in the documents, such as the place of residence, tenure at work place and so on. It is essential to be present during this visit; otherwise the investigator could report that the facts provided do not actually add up, thus forcing the lender to reject the loan application. Step 4: Loan approved Once the lender is satisfied with the veracity of the documents provided, the loan is approved. The lender then disburses the amount through cheques, NEFT or demand drafts (DD).

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Chapter-2 COMPANY OVERVIEW

The history of banking in each country runs in lines with the development of trade and industry, and with the level of political confidence and stability. The ancient Romans developed an advanced banking system to serve their vast trade network, which extended throughout Europe, Asia and Africa. Modern banking began in Venice. The word bank comes from the Italian word “ban co”, meaning bench, because moneylenders worked on benches in market places. The bank of Venice was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with the metal itself staying under lock and key. The goldsmith realized that they could lend out some of the gold and silver that they had and charge interest, as not all of the merchants would ask for the gold and silver back at the same time. Eventually, instead of charging the merchants, the goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the government to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England notes of their own receipts. New technology transformed the banking industry in the 1900’s round the world, banks merged into larger and fewer groups and expanded into other country.

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COMPANY PROFILE  LOGO

The Housing Development Finance Corporation Limited (HDFC) was amongst the first

to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian Bank.” We realized that only a single minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

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HDFC Bank Limited (the Bank) is an India-based banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Bank has a network of 4787 branches and 12635 automated teller machines (ATM’s)

Total No of HDFC Branches across India

Total no of ATM Across India 12220

4715

4727

12635

12260

4787

11686 4011

2015

2016

2017

2018

2015

2016

2017

2018

 VISION AND MISSION OF THE COMPANY:  I. II.

MISSION: World Class Indian Bank Benchmarking against international standards.

III.

To build sound customer franchises across distinct businesses

IV.

Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance 17

 VISION STATEMENT OF HDFC BANK:

The HDFC Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core values such as:1. Operational excellence. 2. Customer Focus. 3. Product leadership. 4. People. The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all his/her requirements. The HDFC Bank plus and the investment advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions, information and advice on various investment avenues.

 BUSINESS STRATEGY: I. II. III.

Increasing market share in India’s expanding banking Delivering high quality customer service Maintaining current high standards for asset quality through disciplined credit risk management

IV.

Develop innovative products and services that attract targeted customers and address in efficiencies in the Indian financial sector.

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ORGANISATION STRUCTURE

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

PRODUCTS OF HDFC BANK

ACCOUNT & DEPOSITS SERVICE Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, they have a range of solutions that are second to none. Whether you're employed in a company and need a simple Savings account or run your own business and require a robust banking partner, HDFC Bank not only has the perfect solution for them, but also can recommend products that can augment your planning for the future.

It includes these services:  Saving accounts.  Current accounts.  Fix deposits.  Demate account.  Safe deposits lockers.

(1)Savings Accounts These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever person’s occupation, bank have confidence that person will find the perfect banking solution. There are some saving accounts like: -

(a)Regular Saving Account: An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and Mobile Banking. If you need money urgently then you can take money from the ATM machine. There are 1977 ATM centers across the country.

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(b)Saving plus Account: Introducing the best banking option for us with HDFC Bank Savings plus Account. Now we can get access to some of the finest banking facilities with HDFC Bank's Savings plus Account. All we need to do is to maintain an Average Quarterly Balance of Rs. 10,000/-.

(c)Saving Max Account: Welcome to a world of convenience. Presenting Savings Max account, loaded with maximum benefits to make our banking experience a pleasure. By maintaining an average quarterly balance of just Rs. 25,000/- we can get a host of premium services from HDFC Bank absolutely free.

(d)Senior Citizen Account: HDFC Bank appreciates our needs and endeavors, which is why, they have present an account especially dedicated to customer, which like a dutiful child will help us fulfill our needs in the best manner possible.

(e)No frills Account: In an effort to make banking simpler and more accessible for customers, bank has introduced the 'No Frills' Savings Account, which offers customer all the basic banking facilities. Customer can even avail services like Net Banking, Mobile banking free of cost. In this customer can put Zero Initial Pay-in and a Zero Balance account.

(f)Institutional saving accounts: A specially designed account that offers twin benefits of a savings as well as a current account. Customer’s funds continue to earn you interest while he enjoys hassle-free banking & a host of other features. All this and more in a Zero Balance account.

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(g)Salary Accounts: In this account customer can get salary from where he/she doing his job. Organization or company where the customer of the bank is doing job, deposits their salary in to this salary account and a person can get salary. There are various kinds of salary accounts in the HDFC Bank like:  Pay roll account.  Classic salary account.  Regular salary account.  Premium salary account.  Defense salary account.  No frills salary account.  Reimbursement salary account.

(h)Kid’s advantage account: Start saving for your child today and secure his/her future a sentence told by the HDFC bank. Open a Savings Account and transfer money every month into customer’s Kids Advantage Account and watch the savings grow as customer’s child grows. The accumulated savings in the Kids Advantage Account can over the years help in meeting customer child's needs.

(2)Current accounts HDFC Bank Current Account gives the power of inter-city banking with a single account and access to more than cities. From special cheques that get treated at par with local ones in any city where branch, faster collection of outstation cheques (payable at branch locations), free account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per month, bank’s priority services have become the benchmark for banking efficiency. Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking. Person can have the power of multi-location access to his account from any of their 4787

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branches in 327 cities. Not only that, he can do most of his banking transactions from the comfort of his office or home without stepping out. There are various kinds of current account in this bank like: -

(a)Plus current account: HDFC Bank plus Current Account gives the power of inter-city banking with a single account and access to more than home city. Plus Current Account requires maintaining an average quarterly balance of Rs. 100,000.

(b)Trade current account: In today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives power of inter-city banking with a single account. From special cheques that get treated at par with local ones in any city where bank have a branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city clearing of up to 50 lakhs per month, bank’s priority services have become the benchmark for banking efficiency. Trade Current Account requires maintaining an average quarterly balance of Rs. 40,000.

(c)Premium current account: Business needs a partner who can manage finances while concentrate on growing business. Form this account customer can avail benefits of inter-city banking account that requires an average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs.25 Lakhs per month. A Current Account with the benefits of accessing account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM.

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(d)Regular current account: A Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular Current Account, customer can access account anytime, anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in account. Regular Current Account requires to maintain an average quarterly balance of only Rs. 10,000. With a vast network of branches in cities all over the country, and access to a multitude of ATM's, customer can keep track of all transactions anytime.

(E)Reimbursement Current Account: No more paperwork, no more receipts to keep track of - a hassle-free account that allows deposit the reimbursements receive from company/organization on a monthly basis. To open this account a person has to follow these processes: Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just joined, first request to company to open up a Salary Account for particular person). Mention Salary Account number and Debit Card number on the AOD so that Debit card can be linked to both, Salary Account as well as new Reimbursement Account. Request company to directly credit cash payments to the Reimbursement Account.

(f)RFC – Domestic Account: Full name of this account is Resident foreign currency account. Open Resident Foreign Currency Domestic Account and manage foreign currency efficiently. Person can choose to set up your account either in US Dollar, Great Britain Pound or Euro. To open this accounts a person has to follow this process: Choose the currency in which person wish to operate. Open account with an initial amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250 and maintain an Average Quarterly Balance of the same amount.

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(g)Flexi current account: HDFC Bank Flexi Current Account is the answer to changing banking needs during peak seasons. With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in Current Account. So, during peak seasons, customer get the benefit of higher transaction limits due to the higher average balances maintained in account. What’s more, during lean seasons, person need not worry about maintaining huge balances to enjoy high transaction limits, which person anyway may not need. Flexi Current Account requires to maintain a minimum Average Monthly Balance (AMB) of just Rs. 75,000.

(h)Apex current account: The top position is always the desirable position. With the Apex current account, take business to a new high. On maintaining an average quarterly balance of Rs. 10 lakhs, this account makes sure person make the most of every business opportunities coming his way. Unlimited, free, anywhere Banking experience at the APEX is reserved for person who joints this.

(i)Max current account: Maximum benefits and minimum hassles for customer with Max Current Account with a Rs. 5 lakhs average quarterly balance requirement, bank present to world of privileges that helps business expand and grow. Features like maximum free transaction limits including other beneficial features on this current account truly enhances business potential to the Maximum.

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(3)Fix deposits service Long-term investments form the chunk of everybody's future plans. An alternative to simply applying for loans, fixed deposits allow to borrow from own funds for a limited period, thus fulfilling needs as well as keeping savings secure. People can invest his/her money into either in security market or gold or mutual fund or into a fix deposits. People always go to that way where he/she can get more benefits and minimum risks. So, for this purpose he has a better chance to deposits money in to the fix deposit. If people believe in long-term investments and wish to earn higher interests on his/her savings, now is the time to invest money in HDFC bank Fixed Deposit. Get up to 9.75% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens. What's more NO PENALTY if withdraw part of the FD in times of need. Flexibility, Security and High Returns all bundled into one offering.

(a)Regular fix deposit As per the rules and regulation of the bank a person can deposit their money in to a fix deposit in the bank and can get the benefits of these facilities.

(b)Five year tax saving fix deposit In 2006, it was announced for the first time that Bank fixed deposits booked by an Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under Sec 80C of the Income Tax Act,1961 subject to necessary declarations taken from the Customer.

(c)Supper saver facility Customer can enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Super Saver Facility on his or her savings account. Avail of an overdraft facility of up to 75% of the value of his or her Fixed Deposit.

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(d)Sweep-in facility Do you wish to avoid taking overdrafts, and still take advantage of your Fixed Deposits? Then what you need is a Sweep-In Facility on savings account. Link Fixed Deposit to Savings or Current Account and use it to fall back on in case of emergencies. A deficit in Savings or Current Account is taken care of by using up an exact value from Fixed Deposit. Since deposits are broken down in units of Re 1/-, customer will lose interest only for the actual amount that has been withdrawn. .

(4) Demat account service Nowadays share market is becoming is the main occupation of the person. So to avoid faulty processes Demat account is really most important for the share market and for the safety of shares it is most important. HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac Demat accounts. HDFC Bank Demat services offers a secure and convenient way to keep track of securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

(5) Safe deposit locker A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Located at select branches in cities all over the country, bank’s lockers ensure the safe keeping of valuables.

Eligibility: An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc may hire a locker.

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Advantages of safe deposit locker in HDFC bank: Wide Availability. Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large with varying rents. Lockers are rented out for a minimum period of one year. Rent is payable in advance. No deposits are required to avail a locker. Just open an account and get the locker facility. There is a nominal annual charge, which depends on the size of the locker and the center in which the branch is located. Nomination for Safe Deposit Locker The Lockers and their contents can be nominated to people near and dear to you. Nomination facility is available to individual hirer of Safe Deposit Locker. In the case of a sole hirer of a safe deposit locker, nomination can be made in favor of only one individual. Where the safe deposit locker is hired in the name of a minor, the nomination shall be made by a person lawfully entitled to act on behalf of the minor.

Terms & Conditions: For obtaining a Locker at HDFC Bank you must be an account holder with Bank. Lockers can be allotted individually as well as jointly. The Locker holder is permitted to add or delete names from the list of persons who can operate the Locker and can have access to it. Loss of Key is to be immediately informed to the concerned Branch.

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SWOT ANALYSIS STRENGHTS: *

It has an extensive distribution network comprising of 4727 branches in 2666 cities & one

international office in Dubai this provides a competitive edge over the competitions. *

The Bank has a strong retail depository base & has more than million customers.

*

Bank boasts of a strong brand equity.

*

ISO 9001 certification for its depository & custody operations & for its backend processing of retail operation & direct banking operation.

*

The bank has a near competitive edge in area of operations.

*

The bank has a market leader in cash settlement service for the major stock exchanges in its country.

*

HDFC Bank is one of the largest private sector bank working in India.

*

It has a highly automated environment in terms of information technology & communication system.

*

Infrastructure is best.

*

It has many innovative products like kids Advantage scheme, NRI services.

WEAKNESS: *

Account opening and delivery of cheque book take comparatively more time.

*

Lack of availability of different credit products like CC Limit, Bill discounting facilities.

OPPORTUNITY: *

Branch expansion

*

Door step services

*

Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks.

*

CC/ OF Facilities.

*

Infrastructure improvements & better systems for trading & settlement in the govt. securities & foreign exchange markets.

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THREATS: 

The bank has started facing competition from players like SBI, PNB Bank in the finance market itself. This reduce the profit margins in the future.



Some Pvt. Banks have 7 days banking.



New Bank licenses and new entrance are increasing.

CHAPTER-3 30

LITERATURE REVIEW

MEANING OF LOAN: The extension of money from one party to another with the agreement that money will be repaid. All loans are made at interest, meaning that borrower’s pay a certain percentage of interest on principal amount to the lender as compensation for borrowing. A loan may be guaranteed by collateral meaning that lender either keeps an asset belonging to the borrower until the loan is repaid or has the right to seize such an asset in the event of default.

DEFINITION OF PERSONAL LOAN: Personal loan is a popular financial loan instrument providing assistance for any immediate financial need. Personal loans are non-collateral loans offered by almost all public sector banks and private banks to leverage any financial crisis. Quick approval with minimal documentation and loan disbursal as quick as one day makes personal loan a widely popular financial instrument. Unlike in the past, a borrower seeking personal loan does not need to be physically present in the bank branch to request for a personal loan. With the use of technology and internet, personal loans can now be applied online with a quick approval process of less than one working day. Wide quantum of loan amount, flexible loan tenure and easy availability makes personal loans a viable financial instrument for people of all financial backgrounds when faced with a financial crisis.

What Are The Different Types of Personal Loans? Okay, without going further let's talk about the different types of personal loans. Personal loans vary by its nature, period, and other things. See the list of all the different types of personal loans. 31



Secured Personal Loan



Unsecured Personal Loan



Fixed-Rate Personal Loan



Variable-Rate Personal Loan



Short-Term Personal Loan



Payday Personal Loan



No Credit/Bad Credit Personal Loan



Home Equity Personal Loan



Line of Credit

Purposes for Which One can take a Personal Loan? Since the name itself is Personal loan it may be taken for variety of personal reasons. The best part is you do not have to disclose the reason for taking the loan even to the bank or financial institution as it is a personal loan. There are plenty of purposes for which a personal loan can be a good idea. For example for travel plans, for wedding, to support medical emergencies, for education, to renovate your house etc.

Following are the sub categories for which you may apply for personal loan: 

Loan for Supporting Weddings:

You may take a personal loan to support you own wedding. In India it is very prominent reason for taking personal loan as the “big, fat Indian wedding culture’ is known to all the financial institutes. They will offer you wedding loan start from buying the jewelry to support the wedding events.



Home Renovation Loans:

Banks does provide personal loan even for renovation of the home. These loan are tailor made as per your requirements. 

Vacation/Travel Loans: 32

Holidaying is becoming expensive by the day. As new horizons beckon, the wanderlust in you would love to go places. Personal Loans for travel are now part of the portfolio of most lenders. 

Debt Merging Loans or Debt Consolidation Loans:

A debt merging loan helps you to syndicate many different liabilities under one umbrella. Merging makes it easier for you to manage your liabilities. Instead of many EMIs, you pay just one. Besides, you can gain cheap interest rates as well. 

Loan for Higher Education:

Education is costly and not easily available to everyone. Therefore, education loans are very important. Almost all banks in India offer education loans and the demand has remained steady.

Why choose a Personal Loan? A temporary financial crisis can happen to anyone irrespective of your overall financial status. Personal loans are a great way to offset any such temporary financial crisis as it allows the users to avail a loan without any pre-conditions on the usage of funds. Personal loans have a quick approval mechanism with loans getting cleared as early as within 24-48 hours of the loan application submission. 

Easy Availability: Easy availability is one of the biggest advantages of a personal loan. Almost all banks and on banking financial companies offer personal loans for its customers. Personal loans are not very expensive and are available at reasonable interest rates making them a lucrative option to overcome any immediate financial need.



Minimal Documentation: Getting a personal loan does not warrant any long process of asset verification and require minimal documentation. Personal loans are quickly disbursed due to the fact that they seek minimal documentation for loan approval.



Quick Loan Approval: Personal loans today come with a quick loan approval mechanism. Loans are approved almost instantly for online personal loan requests.

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Users requesting for a personal loan can expect a loan disbursal within one or two working days making the whole loan process swift and hassle free.

Chapter-4 Objectives At HDFC Bank I was working with the Personal loan department, which caters specifically to providing HDFC Bank’s services to individuals meeting the necessary requirements. On the basis 34

of work which was given to me in Bank the objectives which I came up with are basically on the basis of analysis which I did there.

1) To study the customer experience while personal loan disbursement process. 2) To understands the problems of customers regarding disbursement process. 3) Analysis of customer who have taken personal loam from HDFC bank.

CHAPTER-5 RESEARCH METHODOLOGY

Research methodology is way to systematically solve the research problem. It is a plan of action for a research project and explains in detail how data are collected and analyzed. Research Methodology may be understood as a science of studying how research is done scientifically. It

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can cover a wide range of studies from simple description and investigation to the construction of sophisticated experiment. A clear objective provides the basis of design of the project. Since the main objective of this study is to identify the customers preference, expectation and perception. It was decided to use descriptive research design include, surveys and fact-finding enquires of different kinds, which found out to be the most suitable design in order to carry out the project. .

5.1 MEANING OF RESEARCH Research is an art of scientific investigation. The advanced learner’s dictionaries of current English lay down the meaning of research as, “a careful investigation (or) inquiry especially through search for new facts in any branch of knowledge”. Redmen and Mary research as a “systematic effort to gain knowledge”.

5.2 RESEARCH DESIGN: A Research design is plan that specifies the objectives of the study, method to be adopted in the collection of the data, tools in analysis of data and helpful to frame hypothesis. “A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure”. Research design is needed because it facilitates the smooth sailing of the various project operations, thereby making the project as efficient as possible yielding maximal information with minimal expenditure of effort time and money. Also it minimizes bias and maximizes the reliability of the data collected. Descriptive research involves collecting numerical through selfreports collected, through questionnaires or interviews (person or phone), or through observation. For present study, the research was descriptive and conclusion oriented.

5.3 Types of Research : 5.3.1 Qualitative research Qualitative research is a scientific method of observation to gather non-numerical data. This type of research refers to the meanings, concepts definitions, characteristics, metaphors, symbols, and 36

description of things and not to their counts or measures. Qualitative research approaches are employed across many academic disciplines, focusing particularly on the human elements of the social and natural sciences. 5.3.2 Quantitative research Quantitative research is a structured way of collecting and analyzing data obtained from different sources. Quantitative research involves the use of computational, statistical, and mathematical tools to derive results. It is conclusive in its purpose as it tries to quantify the problem and understand how prevalent it is by looking for projectable results to a larger population.

5.3.3 Descriptive research Descriptive research is used to describe characteristics of a population or phenomenon being studied. It does not answer questions about how/when/why the characteristics occurred. Rather it addresses the "what" question (what are the characteristics of the population or situation being studied). The characteristics used to describe the situation or population are usually some kind of categorical scheme also known as descriptive categories

Source of Data: HDFC branches Pune

There are two types of data

1-Primary data: Primary data can be explained as information collected from sources such as personal interviews, questionnaires or surveys with a specific intention and on a specific subject, and observation and discussion by the researcher him or herself, which information is then assessed by that person. It is a direct approach and, as it is tailored to a company's particular needs, reveals apparently, much-needed information to that company which started the research; 37

that is, the results are used for the purpose for which they were originally intended. It can be a lengthy process but does provide first-hand information.

2- Secondary data: Secondary Data is information that is already available somewhere, whether it be in journals, on the internet, in a company's records or, on a larger scale, in corporate or governmental archives. Secondary data allows for comparison of, say, several years’ worth of statistical information relating to, for example, a sector of the economy, where the information may be used to measure the effects of change or whatever it is that is being researched.

In the project both primary and secondary data was used Primary data: For the purpose of primary data I directly interacted with the Customers by cold calling and also some of the customers who visited branch and tried to collect as much information as possible. Secondary data: For the purpose of secondary data I used the information available at the bank’s website, circulars, journals and other online materials.

Sampling Technique Sampling technique used in the research is both random sampling as well as judgement sampling.

Respondant size: 50 Tool for data collection: structured questionnaire Geographical area: Pune

CHAPTER-6 DATA ANALYSIS AND INTERPRETAT 6.1 Age of the respondents a) <30 b) 30-40 c) 40-50 d) >50 38

>50 6%

Age

40-50 8% <30 36%

30-40 50%

Figure No.1 Age of Respondent Age Group

Repondents

Percentage

<30

18

36%

30-40

25

50%

40-50

4

8%

>50

3

6%

Total

50

100%

Table No.1 Age of Respondent Interpretation:- 36% of the respondent are in the age group of less than 30, whereas 50% of the respondent are in the age group of 30-40 years.40-50 age group consists of 8% of respondent and above 50 years consist of 6%.

6.2 Gender of the respondents a) Male b) Female Fig No.2

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Gender

Female 42% Male 58%

Table No.2 Gender Gender Male Female TOTAL

No. of Respondents 29 21 50

Percentage 58% 42% 100%

Interpretation: 58% of respondent are male, whereas 42% of the respondent are female.

Analysis of customer experience while personal loan disbursement process Q1. What Factor do you think make customer friendly environment for personal loan? 40

a) Procedure b) Staff c) Physical presence d) Employees Courtesy Customers friendly environment

0%

Employees Courtesy

Procedure

22%

30%

Physical presence

24%

Staff

24%

Figure No.3 Factors for customer freindly environment for personal loan Customers friendly environment Procedure Staff Physical presence Employees Courtesy TOTAL

No. of Respondents 15 12 12 11 50

Percentage 30% 24% 24% 22% 100%

Table No.3 Factors for customer freindly environment for personal loan

Interpretation: Hassle free procedure for personal loan make 30% customer friendly environment for personal loan where as bank staff and phusical presence contributes to 24 % for creating customer friendly environment and employee coutesy contribute to 22 % for customer friendly environment for personal loan. Q2. Which factor would you consider during Processing and Disbursing? a) Disbursement time

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b) Hidden charges c) Miscellaneous Expenses d) Guarantor Processing and Disbursing

0% Guarantor

20% Disbursem ent time

40%

Miscellane ous Expenses

16% Hidden charges

24%

Figure No.4 Factor considered during Processing and Disbursing Factors during Processing and Disbursing

No. of

Percentage

respondents Disbursement time

20

40%

Hidden charges

12

24%

Miscellaneous Expenses

8

16%

Guarantor

10

20%

TOTAL

50

100%

Table No.4 Factors Considered during Processing and Disbursing Interpretation: 40% of the customers think that disbursement time is the most important factor during processing and disbursing of personal loan. 24 % considered hidden charges as leading factor wheras 20% think guarantor is important factor during processing and disbursing of personal loan.

Q3. Which Factor is important according to you? 42

a) Interest rate b) Payback period

Factor important for customer during selection of personal loan 35

Number of Respondents

30 25 20 15 10 5

0 Interest rate

Considerable Factors Interest rate Payback period TOTAL

Payback period

No. of Respondent 32 18 50

Percentage 64% 36% 100%

Table No.5 Factor Important for customer during selection of Personal loan

Interpretation: Rate of interest is the most important factor according to the 64% of the customer whereas 36% think that payback period is important factor during selection of personal loan.

Q4. During Payment which terms and condition consider you the most? 43

a) Flexibility b) Pre-payment penalty c) Down payment

Down payment 10%

Payment: terms and Conditions 0%

Pre-payment penalty 20% Flexibility 70%

Figure No.6 Terms and condition during personal loan

Payment: terms and Conditions Flexibility Pre-payment penalty Down payment TOTAL

No. of respondents 35 10 5 50

Percentage 70% 20% 10% 100%

Table No.6 Terms and condition during personal loan

Interpretation: 70% of the customer think flexibility in payment should be considerable factor whereas 20% think pre-payment penalty is considerable factor and downpayment is considerable factor for 10% of the customers.

Q5. Which freebies offered by the bank you consider the most? a) Good treatment in products and services 44

b) Insurance c) Cooperation with bank d) Reputation of bank Freebies offered by the Bank Reputation of bank 16% Cooperation with bank 10% Insurance 4%

freebies offered and other Consideration s 0%

Good treatment in products and services 70%

Figure No.7 Freebies offered by the Bank

Freebies offered and other Considerations Good treatment in products and services Insurance Cooperation with bank Reputation of bank TOTAL

No. of Respondents 35 2 5 8 50

Percentage 70% 4% 10% 16% 100%

Table No. 4 Freebies offered by the Bank Interpretation: Good treatment in products and services is important free benefits given by the bank. Reputation is important factor for 16% of the customers. Whereas 4% thinks insurance is important benefit provided by the bank with personal loan. On the basis of the database given by HDFC bank and the cold calling done by me, the distribution of existing Personal loan Customers can be done on the basis of the type of company customer is currently at job i.e. Government based organization or Private organization.

Q5. Personal loan executive employee aware you about online disbursement process? a) Yes b) No 45

Aware about online disbusrment

No 28%

Yes 72%

Table No. Freebies offered by the Bank

(I)

Aware about online disbusrment

No. of Respondents

Percentage

Yes No TOTAL

36 14 50

72% 28% 100%

DISTRIBUTION OF PERSONAL LOAN CUSTOMER INTO GOVERNMENT ORGANISATION AND PRIVATE ORGANISATION IN HDFC BANK:

46

TOTAL DATABASE OF

JOB AT PRIVATE OWNED

JOB AT GOVERNMENT

EXISTING PERSONAL

ORGANISATION

OWNED ORGANISATION

1272

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LOAN CUSTOMERS 1321

Government Organisation, 49, 4%

Private Organisation, 1272, 96% Private Organisation

Government Organisation

INTERPRETATION: More number of Customers of Personal loan in HDFC Bank holds job in private organizations as compared to government organization. Customers from Government organization are 4% while from Private Organization is 96%.

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(II)

PERSONAL LOAN’S EXISTING CUSTOMERS BEHAVIOUR TOWARDS TAKING ADDITIONAL PERSONAL LOAN IN HDFC BANK:

TOTAL DATABASE OF

INTERESTED TOWARDS

APPLIED FOR

EXISTING PERSONAL

TAKING ADDITIONAL

ADDITIONAL LOAN

LOAN CUSTOMERS

LOAN

1321

59

26

70

59

60

50 40 30

26

20 10 0 INTERESTED TOWARDS TAKING ADDITIONAL LOAN

APPLIED FOR ADDITIONAL LOAN

INTERPRETATION: Customers Choice to choose HDFC Bank again for Personal Loan is decreasing as number of interested customers to take additional loan is 59 while customers who applied again is only 26.

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CHAPTER- 7 Observations and Findings After analyzing and studying the project details, the following conclusion can be made HDFC Bank Provides the service of Relationship Manager to their preferred and Imperia Customers which create a healthy relationship with those Customers.  HDFC Bank Provides a unique and Different Personal Loan segment Product called “Ten Second Personal Loan” which is more beneficial to customers in case of Emergency.  Rate of interest of Personal Loan is much lower than AXIS and other private sector Bank.  HDFC Bank has a flat rate of 11.29% rate of interest for Top-up offer Customers which is not available in Axis Bank.

 HDFC Bank provides the quick Approval of Personal Loan which is within 48 hours* of application while it takes more time in AXIS Bank.  HDFC Bank provides the wide range of Products and Services to customers, so they can easily choose the best suited product for them among wide range of product and services.

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CHAPTER-8 LEARNINGS AND CONTRIBUTIONS/RECOMMENDATIONS After working on the project in HDFC Bank, learnings which I came across are: Got the Brief idea about the Disbursement of Personal Loan, starting from document collection to the disbursement of loan amount into the customer’s account.  Understood how to pitch the product to the Customers while doing a cold calling for a sale of financial product called Personal loan.  Convincing the Customers to take interest in our product and avail the service of Personal loan from HDFC Bank by focusing on the benefits it will provide to the customers.

 Got to understand that the Customer relationship is one of the key success factor in sales, also worked upon in maintaining the relationship with Customers while doing sales of Personal Loan.  Understood the Marketing and Promotional activities used by Banks to promote their Products and services.  Taking Follow-ups from the interested customers is one of the important task after generating lead as it gives the maximum success in sales.

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Learnings: 

Got insights of the Banking in HDFC Bank.



Understood customer preferences for Personal loan.



Understood how to deal with customers according to situations.



Understood the processes in the banking sector , especially of HDFC Bank.



Understood the factors influencing customers needs and wants.



Learnt how create value for customers.



Understood how to create long term relationship between customers and Bank.



Enhanced my negotiation skills.



Improved my interpersonal skills.



Learned how to deal with the senior people in the organization.



Understood about the concept called cibil score.

Contribution: 

Project would help to understand what factors customer consider before buying perosnl loan.



It would make the bank to align its product attributes according to the customer preferences.



Project would help to increase the profitability by understanding the buying behavior of customers.



It would save customers transactional time and costs.

Recommendation: 

Bank should consider reduction in rate of interest as their first priority.



There should be flexibility in tenure period.



Bank should make available precloser option for all the customers buying personal loan

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Chapter-10

REFERENCES/BIBLIOGRAPHY Websites: www.hdfcbank.com  www.axisbank.com  www.rbi.org.in  www.bankbazar.com  www.google.com  www.icicibank.com

Books: Research Methodology by Kothari, C.R  Marketing Management by Philip Kotler  Indian Financial System by M.Y Khan

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