Banking is believed to have a direct nexus with financial and economic development in an economy and hence it can be said as the backbone of any economy. The stronger and efficient the banking sector in an economy the faster is economic development. In the case of emerging economies the importance of banking sector is highly recognised.
Indian banking sector has experienced increased competition since the inception of the financial sector reforms in 1992. Examining the process of banking sector reforms in India, Bhide et al (2001) observe that there has been a beneficial impact on the financial system consequent upon the reforms. In view of the opening of the state controlled banking sector for private players many new generation private sector banks have penetrated into the area of banking more prominently in the domains of corporate banking and retail banking.
Many of the new generation private sector banks have made appreciable strides in the area of retail banking. This has infused a sense of intense competition among the major players in the industry. A. Prasad, Saibal Ghosh, (2007) have evaluated the proposition that competition in the Indian banking sector has increased since the inception of the financial sector reforms in 1992 using annual data on scheduled commercial banks for the period 1996-2004.
Retail Lending:
Retail banking results in better yield and improved bottom line for a bank and hence retail segment is a good avenue for funds deployment. Consumer loans are presumed to be of lower risk and NPA perception. Diversified portfolio due to huge customer base enables bank to reduce their dependence on few or single borrower. Banks can earn good profits by providing non fund based or fee based services without deploying their funds. Retail lending improves lifestyle and fulfills aspirations of the people through affordable credit. Further, helps economic revival of the nation through increased production activity.
Significance of Retail Lending in India
Retail banking has always been prevalent in various forms ever since the evolution of banking. Retail lending is becoming an important segment of bank credit. It holds the key to the inclusive, comprehensive and pervasive growth of India. India's retail-banking assets size is expected to grow at the rate of 18% a year over the next four years (2006-2010). Retail loans will drive the growth of retail banking in future.
There is need to improve the credit off-take by the under banked segments of the society. There is an expanding middle class of 250 to 300 million people in need of varied banking services. India's retail-banking market is expanding rapidly, with total annual revenues expected to more than double, to $16.5 billion, by 2010, from about $6.4 billion today (Joydeep Sengupta and Renny Thomas, (2005)). The topic becomes even more significant by the fact the banking industry is showing steady progress since 2002.
India is the second largest consumer market in the world and consumers in this country are dreaming of buying opportunities. The aspirations of these consumers can be fulfilled only when the consumer lending gathers momentum and grows at a much faster pace, which can be made possible by the lending institutions at an affordable rate. With significant spurt in income levels (especially in middle-income segment) and consumerism, consumer loans, also called personal loans, are now-a-days very popular in India. People find personal loans are easy to arrange and made at fixed interest rate and on the basis of fixed monthly repayment program. Banks are facing fierce competition not only amongst themselves but also from aggressive NBFC's. As a result, interest rates on retail lending too have come down.
Customer service is perhaps the most important dimension of retail banking. While most public sector banks offer the same range of service with similar technology/expertise, the level of customer service matters the most in bringing in more business. Perhaps more than the efficiency of service, the approach and attitude towards customers will make the difference. Customer relationship is the base on which the structure of retail banking will evolve.
While retail banking offers phenomenal opportunities for growth, the challenges are equally daunting. How far the retail banking is able to lead growth of banking industry in future would depend upon the capacity building of banks to meet the challenges and make use of opportunities profitably. However, the kind of technology used and the efficiency of operations would provide the much needed competitive edge for success in retail banking business. Furthermore, in all these customer interest is of paramount importance.
Private sector banks offer a wide range of banking and financial products and financial services to corporate and retail customers through a variety of delivery channels such as ATMs, Internet-banking, mobile-banking, etc. The area could be Investment management banking, life and non-life insurance, venture capital and asset management, retail loans such as home loans, personal loans, educational loans, car loans, consumer durable loans, credit cards, etc. Private sector banks focus on customization of products that are designed to meet the specific needs of customers (Dharmendra Singh and Garima Kohli(2006)).
According to Bank Customer Survey findings (BankNet India's Bank Customer Survey Report on Payment Systems 2008) credit cards are more popular in making payments online. Interestingly, many customers have been unable to use internet banking due to the non availability of site or connectivity problems. Moreover, a trust in the security of internet banking is yet to develop amongst the majority of bank customers. As far as mobile banking is concerned, its popularity is limited mainly due to the charges for sending SMS's are not justified. Despite the available payment options, how well customers are able to use them is still a question. The key differentiator in future will be how banks can increase usage of these payment options by the end user.
LOANS
An arrangement in which a lender gives money or property to a borrower and the
borrower agrees to return the property or repay the money, usually along with interest,
at some future point(s) in time. Usually, there is a predetermined time for repaying a
loan, and generally the lender has to bear the risk that the borrower may not repay a
loan.
Retail Loans
Retail Banking refers to dealing of commercial banks with individual investors.
Retail loans growth further slowed at the end of August 2008 as home loans, the major
contributor, saw a substantial decline. The growth slowed to 17.4 per cent at the end of
August 2008 from 21.4 per cent a year earlier.
Increase in home loans fell to 13.9 per cent from 17 per cent a year earlier, but credit
card overdues, though a small portion within retail loans saw a significant rise of 86.3
per cent against 49.5 per cent a year earlier.
Recently, credit rating agency Crisil has warned of a rise in delinquencies in the retail
portfolio of banks, with rising interest rates. Higher rates could also lead to a slowdown
in lending. "Senior bankers are bracing for higher delinquencies in the personal and
consumer loan portfolio of banks. The asset quality of retail loans extended by
commercial banks in the country is set to deteriorate. The report said that bad loans or
non-performing assets (NPAs) in retail loans will rise to 4% of the total loans over the
next two years, from 2.7% as of March 2007."
There are two basic types of retail loans- secured loans and unsecured loans.
Personal loans and overdraft are unsecured loans whereas housing loans, vehicle loans, direct and reverse mortgage are examples of secured loans.
Personal loans
Personal loans are simply those retail loans which are provided for the purpose of
fulfillment of personal needs and expenses of individuals (prospective loan borrowers).
The personal loans in India primarily are provided fewer than five major categories.
Though the loan amount and the rate of interest vary from bank to bank, but the
purposes of providing these loans are same. Apart from the personal purposes, if
someone possesses the desire to establish his own business then also the Indian banks
always welcome by providing the business start-up loans.
So Personal loan is a lump sum amount that you take either from a bank.Such loans help you to take care of your immediate requirements without much of a hassle. In fact, personal loan is one of the quickest ways of borrowing money. Also, no questions regarding the end use of the loan are asked. You can use the loan amount for any purpose such as home renovation, marriage expenses, medical expenses, holidays, consumer durables, higher education etc. While applying for the loan, the lender usually conducts a credit worthiness check, before giving the loan. Personal loans are repayable in equal monthly installments (EMIs) and the loan tenure varies from 1 to 5 years.
The maximum amount of personal loan for which you are eligible depends upon your take-home salary. The exact loan amount depends on your eligibility and takes into account many other things as well, like your credit rating, job security, residential location and the ability to repay the loan amount in time. You can also apply jointly with a co-applicant, say your spouse for personal loan. This allows you to increase your loan eligibility, as the income of your spouse is also added to your income, for the purpose of calculating the total loan amount. The loan range in case of personal loan is Rs. 50,000 to Rs. 20, 00,000.
As personal loans are given without any security and involve a high risk, the interest charged is usually more as compared to other loans, usually varying from 14 to 24%. Apart from this, interest processing fee is also charged from the borrowers. Processing fee is payable at the time of processing of loan application. A pre-payment fee is payable in case you decide to pre-close your loan account. Both processing fee and pre-payment fee are in the range of 2-3%. You can get the benefits of preferred interest rates, priority processing and simpler documentation, if you are an existing customer with the bank. Generally, personal loans are sanctioned within 72 hours.
Types of Personal Loans
A secured loan is one in which you need to attach a guarantee against the sum of money borrowed. This can either be in the form of your property or any fixed/movable asset. Upon default, there is a risk of the asset being taken over by the bank and sold off.
An unsecured loan is one in which no security needs to given for the money borrowed. However, in this case, the lender would be charging a higher rate of interest, taking into account the high risk involved in lending the sum. In case the recipient fails to repay the loan, the lender can seek legal help to make up for the loss incurred.
Eligibility Criteria for Personal Loans
Salaried Individuals
Minimum Age of the Applicant - 21 years
Maximum Age of Applicant at Loan Maturity - 58 years
Minimum Employment Period - 2 years in total and 1 year at present organization
Minimum Income - Rs. 8000 per month
Self Employed Professionals & Businessman
Minimum Age of the Applicant - 25 years
Maximum age of Applicant at Loan Maturity - 65 years
Minimum Business Period - Minimum 3 years in current business and 5 years total experience
Minimum Annual Income - Rs.60,000
Documents Required for Personal Loan
Bank Statement for last three months (where salary/income is credited)
Salary Slips for last three months (if salaried) or ITR for the last two years (if self employed)
Proof of Continuity in Current Job - Form 16 / Company Appointment Letter (if salaried)
Proof of Identity (Copy Of Passport / Driving License / Voters ID / PAN Card / Photo Credit Card / Employee ID Card)
Proof of Residence (Copy Of Ration Card / Utility Bill / LIC Policy Receipt)
Proof of Qualification Highest Degree (for Professionals / Govt employees)
For Professionals - proof of qualification, say degree, registration with professional council, etc.
Two passport size photographs
The types are as follows:
Consumer Durable Loans
These kinds of loans are being provided for purchasing consumer durable products like
television, music system, washing machines and so on. These are one of the unique
kinds of loans that are provided by the Indian banks to attract more and more people
towards them. Under this category of personal loan, you will get an amount ranging
from Rs.10, 000 to Rs.1, 00,000. But there are several banks which provide a minimum amount of Rs.5, 000 and the maximum amount of Rs.2, 00,000 under this loan. Banks
provide this loan for maximum of a time period of 5 years.
Festival Loans
This kind of personal loan is provided to help people to fulfill their personal and family's
desire during the festival time. Usually, leading banks of India provide this loan on the
festive season at cheaper or discounted rate. This is the best type of loan for those
people who want to avail a small amount of loan. Under this category of loan, banks do
provide an minimum amount of Rs.5.000 and you can get an maximum amount of Rs.50,
000 under this type of loan. But the festival loan is restricted up to 12 months.
Repayment is to be done by equated monthly installments (EMI). The rate of interest on
this loan varies from bank to bank.
Marriage Loans
Nowadays, this type of personal loan is equally getting popular among the people of
urban and rural sectors. The loan amount depends on various factors including age of
the applicant, security pledged by the applicant (if secured loan), repayment capacity of
the applicant etc. Under the marriage loan, the rate of interest is governed by the
prevailing market rate at the time when the loan is disbursed.
Pension Loans
There are several banks in India which take care of the old aged people as well. That's
why the people who have retired from their jobs will also be able to avail personal
loans. This type of loan is called a Pension loan. Under this kind of loan, the banks
provide the maximum amount which is up to 7 to 10 times of the amount which was
received as the last pension.
Personal Computer Loans
In this age of Information technology revolution, having an owned computer almost
becomes a necessity. There are several Indian banks which offer loans that fulfill that
desires of people. Under this category of loan, up to Rs.1, 00,000 of amount can be
borrowed. Banks also provide separate loan for purchasing of software and that can be
provided up to an amount of Rs.20, 000. The rate of interest is being charged according
to prime lending rate and there are some banks who charge extra 2% on the loan
amount.
•The Origination Process
- Application Sourcing from Various Channels
- Application Screening
- Data Entry
•The Evaluation Process
- Application appraisal and mandatory checks
- Financial health of the borrower
- Eligibility Criteria
- Sanction Limit
•The Disbursement Process
- Sanction Terms & Conditions
- Interest Rate & Tenor
- Collateral
- Post Dated Cheques / ECS
•The Monitoring Process
- Post Loan Process
- Recovery Mechanism
- Invocation of Collaterals
• Proposal
- Submission of loan proposal substantiating the need for the loan and substantiates the
ability to repay the loan
• Appraisal
- Appraisal check for credibility of the applicant, whether source of repayment is good
enough to sanction the loan, defaulted in previous occasion, risky customer etc
• Credit Decision (Sanction)
- The bank takes the credit decision based on the credentials of the applicant and the
purpose of the loan.
• Disbursement
- The disbursement can be made as a single payment or in tranches.
•Monitoring (repayment, continuous assessment)
- Monitored to ensure that there are no materials adversities and those recoveries are
promptly coming in till normal closure of the loan account and end use is justified.
•Recovery
- If the customer does not make payment on due dates, follow-up needs to be madelegal
and non-legal.
Non Performing Asset
- If principal/installments and interest are not received for more than x months, the
loan is termed as non performing asset. As the asset (loan) does not earn any money, it
is termed as 'non performing'.
•Suit
- If the loan could not be recovered in the normal process, a bank would file a suit in the court
of law to recover the money. It can be either a civil suit or a criminal suit based on the circumstances.
Banks provide personal loans based on the income of the individual. Banks normally
provide the loan that is up to 2 - 3 times the annual income of the borrower.
Apart from income, other factors that decide the maximum eligible amount
are the borrower's past track record, other existing loans and so on.
If you are already servicing a loan through monthly installments (EMIs),
the bank will exclude your annual EMI payment on that loan while calculating
your income. For example, if you have post tax annual income of Rs 5 lakh
and you have been paying an EMI of Rs 10,000 every month, then the bank
would consider your income as Rs 3.8 lakh (Rs 500,000 - Rs 120,000).
The maximum personal loan that many banks give is Rs 10 lakh, even if
your income makes you eligible for more.
VARIOUS TYPE OF PERSONAL LOAN SCHEMES PROVIDED BY PUBLIC AND PRIVATE SECTOR BANKS:
Sbi Personal Loan
Features: The bank offers a personal loan called 'SBI SARAL PERSONAL LOAN' with interest calculated at a daily reducing balance. The loan can be used for any legitimate purpose such as expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability such as marriage, defraying educational expenses, meeting margins for purchase of assets etc. The maximum loan amount is 12 times the net monthly income (subject to a maximum limit of Rs. 10 lakh), with a repayment period of up to 48 months.
Processing Fees: 2-3% of loan amount
Prepayment Charges: 1% of loan amount if paid before 6 months
Max Tenure: 3
Min-Max Age: 18-60
Plan
Interest Rate Min
Interest Rate Max
EMI
Processing Fee
SBI
16.0
16.0
3516
2-3% of loan amount
Pnb Personal Loan
Features: This bank offers a loan to meet various personal needs to the salaried as well as the self-employed (professionals) class. The maximum loan amount available is Rs. 3 lakh or 30 times monthly net salary, whichever is lower.
Processing Fees: 1.8% of loan amount
Prepayment Charges: Nil
Max Tenure: 3
Min-Max Age: 18-60
Plan
Interest Rate Min
Interest Rate Max
EMI
Processing Fee
Punjab National Bank
13.0
14.0
3369 - 3418
1.8% of loan amount
Obc Personal Loan
Features: The bank gives personal loans for meeting personal/ family expenses such as marriage/education/family functions. The loan can also be used for purchase of consumer durables, gold etc. The loan is available for self-employed professionals as well as the salaried. The maximum loan amount is Rs. 1.5 lakh with an availability of overdraft limit. The maximum loan tenure is 60 months.
Processing Fees: 0.50% of loan amount or min Rs 500
Prepayment Charges: Nil
Max Tenure: 3
Min-Max Age: 18-60
Plan
Interest Rate Min
Interest Rate Max
EMI
Processing Fee
Oriental Bank of Commerce
13.0
13.0
3369
0.50% of loan amount or min Rs 500
Icici Bank Personal Loan
Features: Salaried as well as self-employed individuals can avail of a personal loan from ICICI. The bank offers personal loans up to a maximum limit of Rs. 15 lakh to meet financial needs such as buying a lap-top or renovating a house. No security/guarantor is required. One can also get a loan on the repayment track of an existing loan or a credit card. The maximum loan repayment tenure is 60 months.
Processing Fees: 2% of loan amount
Prepayment Charges: 5% of outstanding amount
Max Tenure: 3
Min-Max Age: 25-58
Plan
Interest Rate Min
Interest Rate Max
EMI
Processing Fee
ICICI Bank
14.0
18.0
3418 - 3615
2% of loan amount
Hdfc Bank Personal Loan
Features: The bank offers personal loans for meeting expenditure in instances such as vacation, admissions and weddings. One can get a maximum loan of Rs 15 lakh with flexible repayment options. The maximum loan tenure is 60 months, with no guarantor/security/collateral required. It offers a personal accident cover of Rs.2 lakh at a nominal premium.
Processing Fees: 2.25% of loan amount
Prepayment Charges: 4% of outstanding amount
Max Tenure: 3
Min-Max Age: 21-60
Plan
Interest Rate Min
Interest Rate Max
EMI
Processing Fee
HDFC Bank
14.5
16.5
3442 - 3540
2.25% of loan amount
Axis Bank Personal Loan
Features: The personal loan known as 'Personal Power' can fund a dream holiday, a lifestyle gizmo, a gift or renovate the house. It will also come handy in needy times. Special loans are available for doctors, chartered accountants, engineers, architects, CS and ICWA. Loans are available for Rs. 1-20 lakh for a maximum tenure of 60 months. Loans are available against repayment track record of an existing loan or proof of life insurance policy or premium receipts. Loan customers will also get a zero-balance SB account.
Processing Fees: 2% of loan amount
Prepayment Charges: Nil
Max Tenure: 3
Min-Max Age: 21-60
Plan
Interest Rate Min
Interest Rate Max
EMI
Processing Fee
Axis Bank
14.0
21.0
3418 - 3768
2% of loan amount
The Concept of Perception:
Perception is one of the objects studied by the science of consumer behaviour.
Analyzing the works of scientists studying consumer behaviour, it is possible to make a
conclusion that perception is presented as one of personal factors, determining consumer
behaviour. Personal factors mean the closest environment of a human, including
everything what is inside the person, his head and soul, characterizing him as a
personality. Using his sensory receptors and being influenced by external factors, the
person receives information, accepts and adapts it, forms his personal attitude, opinion,
and motive, which can be defined as factors that will influence his further activity and
behaviour. Perception within this context is considered as one of the principal personal
factors, conditioning the nature and direction of remaining variables.
Authors J. C. Mowen (1987), D. L. Loudon and A. J. Della Bitta (1993) determine
perception as a phase of information processing, while C. G. Walters and B. J. Bergiel
(1989), F. G. Crane and T. K Klarke (1994), G. D. Harrell, G. L. Frazier (1998), M. R.
Solomon (1999), B. Dubois (2000) define perception as a separate variable of consumer behaviour having features of the process and including separate phases of the process. C.
G. Walters and B. J. Bergiel (1989) characterize perception as a solid process during
which an individual acquires knowledge about the environment and interprets the
information according to his/her needs, requirements and attitudes. The works of F. G.
Crane and T. K Klarke (1994), G. D. Harrell, G. L. Frazier (1998), M. R. Solomon
(1999), B. Dubois (2000) present perception as a more complicated process, during
which sensory receptors of a consumer capture a message sent by external signals and the
information received is interpreted, organized and saved, providing a meaning for it and
using it in a decision making process.
Customer Perception:
Customer perception is an important component of our relationship with our customers. Customer satisfaction is a mental state which results from the customer's comparison of expectations prior to a purchase with performance perceptions after a purchase. A customer may make such comparisons for each part of an offer called''domain-specific satisfaction'' or for the offer in total called ''global satisfaction''.
Moreover, this mental state, which we view as a cognitive judgment, is conceived of as falling somewhere on a bipolar continuum bounded at the lower end by a low level of satisfaction where expectations exceed performance perceptions and at the higher end by a high level of satisfaction where performance perceptions exceed expectations.
Measuring Customer Perception in the Banking Industry Banking operations are becoming increasingly customer dictated. The demand for 'banking super malls' offering one-stop integrated financial services is well on the rise. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. Convergence in the industry to cater to the changing demographic expectations is now more than evident.Bancassurance and other forms of cross selling and strategic alliances will soon alter the business dynamics of banks and fuel the process of consolidation for increased scope of business and revenue.
The thrust on farm sector, health sector and services offers several investment linkages. In short, the domestic economy is an increasing pie which offers extensive economies of scale that only large banks will be in a position to tap. With the phenomenal increase in the country's population and the increased demand for banking services; speed, service quality and customer satisfaction are going to be key differentiators for each bank's future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking, which in turn will help them take positive steps to maintain a competitive edge.
The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what perception the customer has to attain satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction.
The Need to Measure Customer Perception:
Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction as an important strategic success indicator. Evidence is mounting that placing a high priority on customer satisfaction is critical to improved organizational performance in a global marketplace.
With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company.
When buyers are powerful, the health and strength of the company's relationship with its customers - its most critical economic asset - is its best predictor of the future. Assets on the balance sheet - basically assets of production - are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer.
Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction.
Need and Importance of the Study:
One of the most important developments in banking sector has been the growth of the financial industry over the past two decades. The benefits of financial industry can be seen in the form of large scale industrial development, increased employment opportunities, higher turnover as well as revenue generation to the government and also increase in export of goods and services.
Banking industry in India has undergone a process of evolution with the package of time. To count or to depend on a bank merely by the function it is supposed to perform would be insufficient in the world that we live today.
The need of the hour is not only to introduce more value added products for which the customers are willing to pay here but also to innovate & enter new segments like small business & periodical finance. Everything resolves around the customer and banks via with their innovative and quality products to suit their clients. Today the bottom line for any customer is convenience understanding and evaluating the customers perception on the service & products of a bank has without doubt become a need, which propels the body to structure itself for better performance and service.
Thus delivering high quality service to clients is just as important as delivering performance that meets or exceeds their expectations. It is in this context that a study is necessary to know about awareness levels on the services provided by the public and private sector banks namely, Public Sector Banks : State Bank of India, Punjab National Bank, Oriental Bank of Commerce and Private Sector Banks : ICICI, HDFC and Axis Bank and the customer perception towards the personal loans provided by these banks.
OBJECTIVE OF THE STUDY
To understand the customers perception towards personal loans provided by Indian Banks.
To study the services provided by Private Sector and Public Sector banks and the performance of it.
To analyze the service facilities those are being effectively utilized by the customers.
To ascertain suggestions from the investors for further improvement of the institutions.
Methodology
The data required for this study has been collected from the primary sources. Initially a 'Pilot Study' will be conducted for testing the questionnaires. The pilot survey will help in making certain improvement in the final questionnaire. A structured questionnaire shall then be prepared for the respondents in order to collect primary data. The questionnaire is designed based on the objectives.
Source of Data
The researcher proposed to gather the required data through primary data and secondary data. Primary data are those which are collected afresh and for the first time, and thus happen to be original in character. It will be collected through questionnaires method. Secondary data is collected from the possible records like books, magazines, periodicals and websites.
Universe
The proposed study is to find out the services rendered by the Public and Private Sector Banks to their Customers. The population is uncountable and is considered as infinite. However, the proposed sample for the study from Private Sector Banks and Public Sector Banks are 50 respectively.
Sampling Method
The universe of the study is the customers of Public and Private Sector
banks and the sampling technique adopted will be convenient sampling method.
This is a format of sample questionnaire.
There are 50 respondents.
Questionnaire:
Please choose your best option among the choices
1. What is your name?
Ans. …………………………………………………………………
2. Have you taken any prsonal loan from any Indian Bank?
If "no" then please do not proceed further.
Ans. (A) Yes (B) No
3. What is your occupation?
Ans. (A) Service Holder (B) Business Person (C) Others………..(please specify)
4. What is your income level?
Ans. (A) 10,000-24,999 (B) 25000-34999
(C) 35000-44999 (D) 45000- 54999
(E) 55000+
5. Which personal loan have you taken?
Ans. ……………………………………………………………………..
6. Please name the Bank from which you take Personal Loan.
Ans………………………………………………………………………
7. What about your opinion regarding interest rate.
Ans. (A)Very Satisfactory (B) Satisfactory
(C)Unsatisfactory (D) Extremely unsatisfactory.
8. What about your opinion regarding required documentation.
Ans. A)Very easy (B) Easy
(C)Difficult (D) Very Difficult.
9. What do you think about service charge?
Ans. A) Very comfortable (B) Comfortable
(C) Uncomfortable (D) Very uncomfortable
10. The loan processing time is lengthy.
If you do not agree with this statement then skip the next question and answer.
Ans. (A) Yes (B) No.
11. How quickly do you want the loan?
Ans. (A) 1 day (B) 2 days (C) 3 days
(D) 4 days or above
12. Which grade you want to give of personal loan schemes of the bank?
Ans. (A) Excellent (B) Very Good(C) Good(D)Average(E) Below Average
13. In which area(s) do you want that they should take care of?
Ans (A) Interest rate (B) Installment period
(C)Required documents, (D) Loan processing time,
(E) Service charge
14. What type of action(s) they should take concerning to your convenience area(s)?
Write in brief.
Ans.
………………………………………………………………………………………………
………………………………………………………………………………………………
15. There are many govt. and private banks in India. What are the reasons that make you to choose this bank? Write in brief.
Ans.
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
THANK YOU FOR YOUR CO-OPERATION
ANALYSIS:
Occupation of the Customer:
Businessman
25
Student
0
Govt. Employee
22
Other
0
House Wife
3
Interpretation:
There are total 50 respondents
25 respondents are businessman
None of them was student
22 respondents are Govt. Employees
3 respondents are house wives
Income Level of Customer:
10000-24999
17
25000-34999
18
35000-44999
5
45000-54999
6
55000+
2
Interpretation:
There are total 50 respondents
17 respondents are under income level between 10000-24999
18 respondents are under income level between 25000-34999
5 respondents are under income level between 35000-44999
6 respondents are under income level between 45000-54999
2 respondents are under income level 55000+
Which personal loan have you taken?
Festival Loan
0
Marriage Loan
2
Pension Loan
4
Personal Computer Loan
5
Multi Purpose Loan
39
Interpretation:
There are total 50 respondents
0 respondents took Festival Loan
2 respondents took Marriage Loan
4 respondents took Pension Loan
5 respondents took Personal Computer Loan
39 respondents took Multi purpose Loan
Please name the Bank from which you take Personal Loan.
SBI
13
PNB
6
OBC
4
ICICI
14
HDFC
9
AXIS
5
Interpretation:
There are total 50 respondents
13 respondents took loan from SBI
6 respondents took loan from PNB
4 respondents took loan from OBC
14 respondents took loan from ICICI
9 respondents took loan from HDFC
5 respondents took loan from AXIS
What about your opinion regarding interest rate.
Very Satisfactory
13
Satisfactory
21
Unsatisfactory
9
Extremely Unsatisfactory
7
Interpretation:
There are total 50 respondents
13 respondents come under category of Very Satisfactory
21 respondents come under category of Satisfactory
9 respondents come under category of Unsatisfactory
7 respondents come under category of Extremely Unsatisfactory
What about your opinion regarding required documentation.
Very Easy
12
Easy
19
Difficult
7
Very Difficult
12
Interpretation:
There are total 50 respondents
12 respondents said required documentation is very easy
19 respondents said required documentation is easy
7 respondents said required documentation is difficult
12 respondents said required documentation is very difficult
What do you think about service charge?
Very Comfortable
14
Comfortable
19
Uncomfortable
11
Very Uncomfortable
6
Interpretation:
There are total 50 respondents
14 Customer said service charges are very comfortable
19 Customer said service charges are comfortable
11 Customer said service charges are uncomfortable
6 Customer said service charges are very uncomfortable
The loan processing time is lengthy.
If you do not agree with this statement then skip the next question and answer.
Ans. (A) Yes (B) No.
Yes
19
No
29
No Answer
2
Interpretation:
There are total 50 respondents
19 respondents said processing time is lengthy
29 respondents said processing time is not lengthy
2 respondents not answered this question
How quickly do you want the loan?
1 Day
29
2 Days
11
3 Days
10
4 Days
0
Interpretation:
There are total 50 respondents
29 respondents they want loan in 1 day
11 respondents they want loan in 2 days
10 respondents they want loan in 3 days
0 respondents they want loan in 4 days
Which grade you want to give of personal loan schemes of the bank?
Excellent
9
Very Good
11
Good
10
Average
12
Below Average
8
Interpretation:
There are total 50 respondents
9 respondents said loan scheme of the bank is Excellent
11 respondents said loan scheme of the bank is Very Good
10 respondents said loan scheme of the bank is Good
12 respondents said loan scheme of the bank is Average
8 respondents said loan scheme of the bank is Below Average
In which area(s) do you want that they should take care of?
Interest rate
26
Installment Period
1
Required Documents
3
Loan Processing time
9
Service charge
11
Interpretation:
There are total 50 respondents
26 respondents said they want that bank should take care of interest rates
1 respondents said they want that bank should take care of installment period
3 respondents said they want that bank should take care of required documents
9 respondents said they want that bank should take care of loan processing time
11 respondents said they want that bank should take care of service charge
What type of action(s) they should take concerning to your convenience area(s)?
Write in brief.
The average answer of the respondents are that they want quick service by banks and loan processing time should be less and after loan services should be provided consistently like letters should be sent to customers regularly regarding their installments.
There are many govt. and private banks in India. What are the reasons that make you to choose this bank? Write in brief.
The answer of the customers for this answer is that they prefer good services provided by banks. Those customers who prefer public sector bank, they said that they choose because of trust on public sector banks and less interest rates in comparison to private sector banks.
And those customers who took loan from private sector banks , they said that they prefer private sector banks because of quick service and less loan processing time.
LIMITATION:
Although best of the efforts were made to conduct a prefect survey but still it faces certain limitation.
Following were certain limitation of this project.
1.The survey was conducted only on 50 respondents.
2.Some of the respondents did not answer all the questions, which could hamper the final results to a certain extent.
3.The study confines itself to the respondents of "PHAGWARA" region only. Hence findings would not be relevant to other cities.
4. Sometimes biasness of respondents does not provide accurate results.
CONCLUSION:
There are 50 respondents included in this research. From this research I try to find out the perception of the consumer towards personal loans provided by Indian Banks. And for this research I included 3 public sector banks and 3 private sector banks.
Customers who preferred public sector banks they said that they trust on the public sector banks and public sector banks provided loans on less interest rates in comparison to private sector banks.
Customers who preferred private sector banks said that they like the less loan processing time taken by private sector banks. But somehow there is a problem that private sector banks charged more interest rates in comparison to public sector banks.
Customers prefer personal loans in comparison to other loans because there are many schemes provided by Indian banks.
Customers said that it is easy to get personal loans in comparison to other loans but somehow in India there are less customers who took personal loans in comparison to other loans.
Customers said that multi purpose personal loans are best because no body ask about where you spend your money and why you want this loan.
Customers said that there are only salary statements are demanded by banks for getting personal loans. Banks only demand income proof of the customers to give personal loans. Somehow big amount of personal loans demanded some mortgage or some guarantee.
So overall customers said that it is easy to get personal loans from banks. If some customer want some money for their some contingency and they have less income then they easily get money from the banks.
But the overall problem is that customers said that banks are charging high interest rates on personal loans that's why there are less number of customers who took personal loans.
