A

PROJECT
ON
A COMPARATIVE STUDY OF CAR LOAN BY TATA CAPITAL LTD. & OTHER
BANKS
For the partial fulfillment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATION
(SESSION: - 2010 - 2011)
Under the Guidance of :

Submitted by :

Mr. Mohit Singhal

Vidhi Arya

(Assistant Professor)

Roll no. 1033670042

Affiliated to Mahamaya Technical University, Noida

MTU Code 336

ACKNOLEDGEMENT

If words are considered to be signs of gratitude then let these words convey the very
same. My sincere gratitude to TATA CAPITAL LTD. for providing me with an opportunity
to work with TATA CAPITAL LTD. and giving necessary directions on doing this project
to the best of my abilities.

I am highly indebted to Mr. Krishan Verma, (Branch Manager), who has provided me
with the necessary information and also for the support extended out to me in the
completion of this report and his valuable suggestion and comments on bringing out this
report in the best way possible.

I am also thanks to Dr. R. K. Jatley, Director (REMTECH Shamli), who has sincerely
supported me with the valuable insights into the completion of this project. I extend my
heartfelt thanks to Mr. Abhishek Bagla, HOD, & Mr. Mohit Singhal to help me during
this project.

I am grateful to all faculty members of Roorkee Engineering and Management

Technology Institute, Shamli and my friends who have helped me in the successful
completion of this project.

(VIDHI ARYA)

DECLARATION

I am VIDHI ARYA, the student of M.B.A.of

REM Tech. (affiliated to M.T.U.,

Noida). Here by declare that the project report on the COMPARATIVE STUDY OF
CAR LOAN BY TATA CAPITAL LTD & OTHER BANKS.
It is my original work and has not been submitted by any other person.
I also declare that I have done my work sincerely and accurately even then if any
mistake or error had kept in I request to readers to point out these errors and me to
remove these errors for future.

(VIDHI ARYA)

PREFACE

On the job training in business organization infuses among student senses

of critical analysis of the real managerial situations to they are exposed. This gives them
an opportunity to apply their conceptual, theoretical and imaginative skills to real life
situations and evaluate the results thereof.
The concept of summer training, which is there in curriculum of Business Management
Schools, serves two important purposes. Firstly, it gives the student the fair amount of
insight of the problem faced by them. Secondly, this type of projects helps business
management students to get a first hand experience of the actual working conditions,
which otherwise is possible only when students the job Joining.
As a part of MBA Program, student has to pursue a project duly approved by the
Faculty of Concerned area. I had the privilege of undertaking the project on A
COMPARATIVE STUDY ON CAR LOAN BY TATA CAPITAL LTD. & OTHER BANKS
This report is account of what I learnt and experienced during my training and I
have tried to complete this report with as much perfection as possible.

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that banking sector has the maximum
growth and potential as compared to the other sectors. This growth potential attracts me
to enter in this sector and Tata Capital Ltd. has given me the opportunity to work and get
experience in highly competitive and enhancing sector.

The success story of good market share of different market organizations

depends upon the availability of the product and services near to the customer,
which can be distributed through a distribution channel.

Marketing channels helps company in getting good market share and reach to
customer more fluently and for that all big giant in this sector of banking take help
of good marketing channels. Auto loan is a big demand in todays era and
banking corporations also available in this sector.

Marketing channels are the only way for a company of banking sector through
which policies and benefits of the company can be explained to the customer.

INDEX

S.NO.

CONTENT

Company profile

Objectives

Research methodology

Car loan

SWOT analysis

Data interpretation & analysis

Findings

Conclusion

Recommendations

10

Appendices

11

Limitations of the study

Bibliography

INTRODUCTION

Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is registered
with the Reserve Bank of India as a Systemically Important Non Deposit Accepting Non
Banking Financial Company (NBFC) and offers fund and fee-based financial services to
its customers.

We only do whats right for you

The Tatas are amongst the most respected business houses in the world. Tata Capital
aims to bring the trust and expertise of the Tatas to an economically and socially
relevant sector like financial services.

The essence of brand Tata Capital is encapsulated in our brand proposition We only
do whats right for you'. The proposition reflects our strong resolve to deliver financial
solutions that are right for our customers and the society at large.

Tata Capital seeks to build strong relationships with its customers and deliver superior
and consistent customer experience across all products and touch-points.

ORIGINATION OF COMPANY

The beginning of the Tata Group can be traced back to 1868, when Jamsetji
Nusserwanji Tata established a trading company dealing in cotton in Bombay (now
Mumbai), British India.
This was followed by the installation of 'Empress Mills' in Nagpur in 1877. Taj
Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903.
Sir Dorab Tata, the eldest son of Jamsetji Tata became the chairman of the group
after his father's death in 1904. Under him, the group ventured into steel production
(1905) and hydroelectric power generation (1910).
After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till
1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata.
Tata Group is an Indian multinational conglomerate company headquartered in
the Bombay House in Mumbai, India. Tata Group is one of the largest companies in
India by market capitalization and revenue. It has interests in communications and
information technology, engineering, materials, services, energy, consumer products
and chemicals.

The Tata Group has operations in more than 80 countries across six continents
and its companies export products and services to 80 nations. The Tata Group
comprises 114 companies and subsidiaries in eight business sectors, 27 of which are
publicly listed.
65.8% of the ownership of Tata Group is held in charitable trusts. Companies
which form a major part of the group include Tata Steel (including Tata Steel Europe),
Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata
Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power,
Tata Communications, Tata Sons, Tata Teleservices and the Taj Hotels.
The group takes the name of its founder, Jamsedji Tata, a member of whose
family has almost invariably been the chairman of the group. The current chairman of
the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the

major international business figures in the age of globality. The company is currently in
its fifth generation of family stewardship. TATA Group's 114 companies are held by its
main company Tata Sons and the main owner of Tata Sons are various charitable
organisations developed and run by Tata Group. Out of which JRD Tata Trust & Sir
Ratan Tata Trust are the main holders. About 65% ownership of Tata Sons which is the
key holding company of the other 114 Tata Group Company is held by various
charitable organisations.
The 2009, annual survey by the Reputation Institute ranked Tata Group as the
11th most reputable company in the world. The survey included 600 global companies.
The Tata Group has helped establish and finance numerous quality research,
educational and cultural institutes in India.The group was awarded the Carnegie Medal
of Philanthropy in 2007 in recognition of its long history of philanthropic activities. Tata
gets more than 2/3 of its revenue from outside India.
In June 2011, based on market value Tata Group has become India's
wealthiest group with $98.7 billion.

TATA CAPITAL LTD.

Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is

registered with the Reserve Bank of India as a Systemically Important Non Deposit
Accepting Non Banking Financial Company (NBFC) and offers fund and fee-based
financial services to its customers.

A trusted and customer-centric, one-stop financial services provider, Tata Capital

Limited caters to the diverse needs of retail, corporate and institutional customers,
directly or indirectly, through its subsidiaries across various areas of business namely
the Commercial Finance, Investment Banking, Private Equity, Infrastructure Finance,
Securities, Wealth Management, Consumer Loans, Cards and Travel Related Services.

Tata Capital is headquartered in Mumbai and has a wide network of over 100
branches spanning all critical markets in India.

Financial Highlights:

Tata Capital is a fast expanding financial services provider and built a strong foundation
in its initial years of business.
YTD Dec 2010 (Rs. Crore):

Total Assets 14, 463

Total Advances 12,100

Net Worth 2,222

Capital Adequacy Ratio 17.1%

THE TATAS TODAY MARKET VALUE:

Market capitalization of 28 listed companies( Feb., 17, 2011)

454,688 cr/ $100.26 bn

6.9% of BOMBAY STOCK EXCHANGESS MAKET CAP

3.5 mn shareholders

VISION & MISSION

Mission:
To be a competitive value provider in international business for Group companies and
all our partners.

Vision:
Our philosophy is rooted in the Tata Groups core values: Integrity,
Understanding, Unity, Excellence and Responsibility. It is our vision to exemplify
these core values in the financial sector and become the leading financial
services company in India with a global footprint.
We aspire to become a pioneering and forward-looking organization that is
collaborative, nimble, innovative and responsive to the changing financial needs
of our clients. We strive to be a reliable and a result-oriented custodian of our
clients finances. We seek to create an amicable atmosphere of collaboration,
understanding and unity, to ensure happy, motivated and engaged employees.
We seek to be trusted, admired and respected amongst all out stake holders,
customers, employees, regulators, share holders and the community at large.
We wish to achieve our vision by only doing whats right.

We only do whats right for you:

The essence of brand Tata Capital is encapsulated in our brand proposition
We only do whats right for you'
The proposition reflects our strong resolve to deliver financial solutions that are
right for our customers and the society at large.
We seek to build strong relationships with customers via deep understanding of
their needs, strong financial expertise and the delivery of superior and consistent
customer experience across all touch-points.

Brand Charter:
We choose to put our customers interest above ours, and fulfill their needs.
We choose to use our expertise to get the best results for our customers.
We choose to innovate and come up with new ways to fulfill our customers
needs.
We choose to make promises we can keep, and keep the ones that we have
made.
We choose to believe that we enrich our customers, and not just make them rich.
We choose to be humble and courteous with everyone who walks through our
doors.
We choose to respect our customers and colleagues, and in turn gain their
respect.

 We choose to earn our stakeholders trust and not just expect it.
We choose to let not just our expertise, but also our conscience lead us.

Corporate Sustainability:
We at Tata Capital believe that corporate sustainability is a cornerstone for
business operations.
Tata Capital is a socially responsible corporate citizen and a socially committed
organization. We have always made sincere efforts to protect the interests of all
our stakeholders and contribute to society.
With a view to make a meaningful and positive contribution, we have identified
four key areas of work - Livelihood & Employability, Health, Education &
Environment.

A Unique Customer Centric Business Model:

 Tata Capital aims to build itself into a customer centric organization and thus
supports a front end which is truly based on customer convenience.
All products and services of Tata Capital are offered to the Retail, Corporate and
Institutional customers via a unique common sales and service structure - a one
stop shop for the customer, servicing his entire financial requirements through a
single window.

Commercial Finance:
With its wide array of products and customized service, our commercial finance
business, helps small, medium and large corporates grow their business.
Our team of handpicked professionals offers indepth expertise to help customers
keep pace with the changing marketplace and offer them appropriate solutions to
meet their ever-growing financial needs.
Our range of offerings includes Term Loans, Working Capital Loans, Channel
Finance, Equipment Finance, Lease Rental Discounting, Bill Discounting Letter
of Credit and Bank Guarantee.

SERVICES PROVIDED BY TATA CAPITAL LTD.

Commercial Finance

With its wide array of products and customized service, our commercial finance
business, helps small, medium and large corporates grow their business. Our team of
handpicked professionals offers in-depth expertise to help customers keep pace with
the changing marketplace and offer them appropriate solutions to meet their evergrowing financial needs. Our range of offerings includes Term Loans, Working Capital
Loans, Channel Finance, Equipment Finance, Lease Rental Discounting, Bill
Discounting Letter of Credit* and Bank Guarantee*

Investment Banking

Tata Capital Investment Banking services help Institutions and Corporates manage and
grow their business via high quality financial advisory services and capital market
solutions. Our team of dedicated and experienced professionals understands the needs
of its customers and offers them cost-effective solutions from a bouquet of services
comprising M&A Advisory, PE Syndication and Debt and Equity Capital Market services.

Private Equity

Tata Capitals Private Equity business identifies, funds, nurtures and profitably exits
companies, with significant growth potential. Our team looks to create value in these
companies, beyond its role as a financial investor, by supporting them in areas like
strategy, business development, manufacturing, marketing, technology, treasury and
facilitating overall improvement and growth of the companys operations. To enable this,
the team leverages the vast business management experience of the Tatas across
different sectors of the economy.

Infrastructure Finance

Our Infrastructure Finance business caters to the specialized needs of the

infrastructure sector. With an array of attractive finance options to suit the varying needs
of its customers, both large and small and backed by a reputation of reliability and trust,
it brings a promise of quality and world class service. Our range of offerings includes
Equipment Finance, Project Finance, Equipment Rentals, Working Capital Loans, Bill
Discounting/ Factoring, Refinance, Top Up Loans and Loan Syndication

Securities

Tata Securities Limited*, a wholly owned subsidiary of Tata Capital Limited, offers, both
institutional and retail customers, quality products and services like equity trading and
research. With a strong research and execution team, and uncompromising ethical
standards, Tata Securities strives to work in the interest of its customers and has
successfully built a franchise of strong relations.

Wealth Management

Whether it is selecting the right investment opportunity, growing a financial portfolio or

building a retirement nest, our Wealth Management team guides our customers at every
step. Backed with strong research capabilities and a deep understanding of our
customers, our team helps recommend and execute a customized financial strategy
that is just right for our customers. The spectrum of offerings includes, Financial
Planning Services, Retirement Planning Services, Third party investment products like
Portfolio Management Services, Private Equity/Venture Capital Funds, Structured
Products, Mutual Funds, Fixed Deposits and Bonds.

Consumer Loans

Our wide range of consumer loans helps ensure that the dreams our customers want to
realize today, are not put off for tomorrow. With a deep understanding of our customers
needs we are able to guide them at every step and offer them specific financial
solutions. Our Consumer Loans include, Home Loans*, Auto Loans, Personal Loans,
Business Loans, Education Loans, Loans against Property, Loans against Shares#,
Loans against Gold.

Tata Cards

The Tata Card* combines the convenience of a powerful credit card with a rewarding
membership to the Empower program. The credit card allows customers to earn points
and the Empower program, India's first multi-brand loyalty program, offers them the
advantage of redeeming these points across several loyalty programs.

Travel Related Services

Our travel related services helps cater to a range of travel needs - from planning
customized holiday packages for individual customers to group travel arrangements for
corporate customers. Our focus on service quality and transparency is supplemented by
our commitment to optimize the cost, comfort and convenience for all our customers.
Our wide range of services includes Airline ticketing, Visa & passport facilitation, Hotel
accommodation and Cars-hire & surface transport.

Forex Services

TT Holdings & Services Limited, a wholly-owned subsidiary of Tata Capital Limited

offers a complete range of travel related foreign exchange products.

Our wide range of services include travelers cheques, foreign currency notes, foreign
currency denominated pre-paid travel cards, inward money transfer service and other
associated travel related products like travel insurance, prepaid calling cards

Affiliates:

Financials Limited is a BPO and KPO unit specializing in the area of financial services
and owned by Tata Capital Limited, Tata Sons Limited and others.
Tata Capital Limited also owns around 4% of the equity capital of (Development Credit
Bank), a new generation private sector bank with a network of 80 state-of-the-art
branches across 10 states and two union territories.

Strategic Alliances:

With Mizuho Securities Co. Ltd. to foster business cooperation

in private equity, investment banking including cross border mergers and acquisitions,
securities business including broking and distribution, structured finance and other
business areas such as wealth management.
With Mizuho Corporate Bank Limited (MHCB) to foster business cooperation,
enhancing cross-market value creation capabilities, strengthening competitive
advantages in addition to aiding each other in gaining a deeper understanding of the
Indian and Japanese markets. As part of the understanding, Tata Capital and MHCB will
cooperate in a wide-range of business areas. Some of these include Ninja Loans,
Project and Infrastructure Finance and Treasury Products.

With Mitsubishi UFJ Securities Co., Limited to establish a basis of cooperation

in a wide range of strategic business areas that include cross-border investment
banking, global offering of Indian.

Leaders with a vision

Tata Capital Board consists of valuable and extensively experienced individual experts
in their domains. They direct and nurture the Company with their priceless guidance,
foresight and vision.

Farrokh K. Kavarana
Farrokh K. Kavarana is a Director of Tata Sons Limited and Tata Industries Limited, the
apex holding companies of the Tata Group. He is the Chairman of several Tata
Companies in India and abroad notably Tata AIG Life and General Insurance
Companies, Tata Asset Management Ltd., Trent Ltd. and Tata Projects Ltd.

Farokh Nariman Subedar

Mr. F N Subedar is a qualified chartered accountant and company secretary and has
vast experience in the matters of company administration, taxation, accounts and
finance. He is the senior Vice President - Finance and Company Secretary of Tata Sons
Ltd. and is on the board of various Tata companies. Mr. Subedar has served as the
Chairman of the Direct Taxation Committee of the Bombay Chambers of Commerce and
Industry.

Hoshang Noshirwan Sinor

Hoshang Noshirwan Sinor was the Chief Executive, Indian Banks Association, Mumbai,
India till July 31, 2008. With 42 years of extensive experience in the banking sector, he
has had exposure to the working of both public sector and private sector banks in India
and has hence, had the experience of both the phases of nationalization and
liberalization in this sector in India..

Ishaat Hussain
Ishaat Hussain, the Finance Director of Tata Sons Ltd. since July 2000, joined the Board
of Tata Sons as an Executive Director on 1st July 1999. Prior to joining Tata Sons, he
served as the Senior Vice-President and Executive Director Finance in Tata Steel
where he served for almost 10 years. Besides being on the Board of Tata Sons Ltd., he
is also the Chairman of Voltas Limited and Tata Sky Limited. He serves on the Boards of
several Tata Companies like Tata Steel, Tata Industries, Tata Teleservices and Titan
Industries Limited. Mr. Hussain is a member on the Primary Markets Advisory
Committee of the Securities and Exchange Board of India (SEBI). In April 2005, he was
appointed a Member of the Board of Trade and in November 2006 he was appointed a
Public Interest Director of Bombay Stock Exchange Limited.

Janki Ballabh
Janki Ballabh joined the State Bank of India in July 1966 and served in several
important positions which included assignments at the New York Branch of the Bank,
Chief Executive Officer of the Bank's Branch at Singapore, Chief General Manager
(Product Development, Marketing and Personal Banking) at the Corporate Office and
Deputy Managing Director and Group Executive (International Banking), before taking
over as Chairman, State Bank Group in November 1, 2000. Besides heading the State
Bank of India, Shri Ballabh was also the chairman of the Seven Associate Banks of the
State Bank of India, 4 banking subsidiaries of the Bank abroad and seven non-banking
subsidiaries of the Bank in India. On retirement from State Bank of India, Shri Ballabh
was appointed by the President of India as Vigilance Commissioner in the Central
Vigilance Commission, New Delhi for 3 years from November 2002 to October 2005.
Shri Ballabh worked as Chairman, Reserve Bank of India Services Board from 8th
December 2005 to 23rd October 2007. He is presently the Chairman, UTI Trustee Co.
of UTI Mutual Fund. He also serves as the Director on the Boards of Tata AIG Life
Insurance Co. and Small Industries Development Bank of India (SIDBI). He is also a
Member of the Asia Pacific Advisory Committee of Barclays Bank PLC, London since
June 1, 2007.

Praveen P Kadle
Praveen P Kadle, the Managing Director of Tata Capital Limited, has been associated
with the Tata Group for the last 16 years in various important capacities. For the first 5
years, he served as the Chief Financial Officer of Tatas joint venture with IBM in India.
Thereafter, he joined Tata Motors Limited as Vice-President (Finance) and in the year
2001 he joined the Board of Tata Motors Limited as Executive Director Finance and
Corporate Affairs.

AWARDS & RECOGNITION

Padma Bhushan on 26 January 2000
Padma Vibhushan . On 26 January 2008
NASSCOM Global Leadership on February 14 2008 in Mumbai
Carnegie Medal of Philanthropy in 2007
Robert S. Hatfield Fellow in Economic Education In March 2006
London School of Economics and Indian Institute of Technology
Kharagpur.
the Government of Singapore conferred honorary citizenship on Ratan Tata,
the title of honorary economic advisor to Hangzhou city in the Zhejiang province
of China.
Fortune magazine in November 2007 ,listed him among the 25 most powerfull
business man
Time magazine's 2008, listed him the World's 100 most influential people

OBJECTIVE OF THE STUDY:

 TO STUDY THE CAR LOAN PROVIDED BY TATA CAPITAL LTD. TO THEIR

CUSTOMERS.

TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE SANCTIONING

OF CAR LOAN.

TO STUDY THE AWARENESS OF THE CAR LOAN

MAKE A COMPARATIVE

AMONG THE CUSTOMER

STUDY OF TATA CAPITAL LTD. CAR LOAN WITH

OTHER COMPETITIVE BANKS

TO

STUDY THE RULES AND DOCUMENTS REQUIRED BY TATA CAPITAL

LDT FOR CAR LOAN

TO KNOW THE VARIOUS LOAN PROVIDED BY THE TATA CAPITAL LTD.

RECOMMEND THE VALUABLE SUGGESTION WHICH MAY INCREASE THE

FAITH OF NEW CUSTOMERS.

RESEARCH METHODOLOGY
Research

The study of research method provides you with the knowledge and skills you need to
solve the problem and meet the challenges of the fast- based decision. Marketing
environment we define Business Research as a systematic inquiry whose objective is to
provide information to solve managerial problem.
It seeks to find explanation to unexplored phenomena to clarify the doubtful facts and to
correct the misconceived facts. This will be done by carrying out the following process.
a) Defining the problem and research objective:
The research objective is to find out the perception of the customers about the services
provided.

b) Method of data collection:

After determining the research objective the nature of data to be collected is given due
consideration as it will influence the interpretation of the entire project, after determining
the nature of data the next step would be to adopt an appropriate data collection
method. The method of data collection adopted by the research is inclusive of a
structured well designed questionnaire.

c) Sampling Design:
Sampling units:

The respondents of the questionnaire are categorized are the customers of the Tata
Capital Ltd.
Sample size:
Survey will be conducted for 100 respondents who are the customers of Tata Capital
Ltd.
Sampling technique:
The respondents were interviewed with the help of a well structured questionnaire and
will be interviewed personally to gather the required information.
Sources of data:
Data collected for the project study is inclusive of both primary as well as secondary
data.

Type of Data Used

There are basically two types of Data
Primary Data
Secondary Data

Primary Data

Primary Data is first hand information that the researcher collects. It helps in collecting
useful and most accurate information that is needed for the researcher to do his
research.
Primary Data will be collected from Tata Capital Ltd. clients who are already using the
services of Tata Capital Ltd., for the descriptive information. The purpose of this study
is to find out perception of clients in the population (what percentage) of KARNAL city
about car loan by Tata Capital Ltd.
Sources of Primary Data
1. Questionnaire
2. Interview Schedule
Secondary Data
Secondary data is what the researcher collects from different sources. It also help
researcher to get elaborate information to do his research.
Sources of Secondary Data
1. Internet
2. Journal

Research Design

MARKETING RESEARCH
Marketing research covers the field of problems, techniques, and other aspects of
marketing and related decision-making and their implementation. It studies an
economic unit in respect of its various constituents such as consumers, buyers, and
sellers. It studies their response pattern towards prize, promotion, purchasing power,
and loyalty towards specific brands and similar other marketing activities. It also tries
to determine the contribution of other relevant factors such as habits, consumers,
and preference to decision making.

TYPES OF RESEARCH DESIGN

The research design adopted for this study is exploratory research design.

Exploratory research includes survey and fact finding enquiries of different kinds.

Research design is used to describe the state of affairs, as it exists at present.

Types of Research
Descriptive Research

Descriptive study is a fact- finding investigation with adequate interpretation. It is the

simplest type of research. It is more specific than an explanatory study, as it has focus
on particular aspect of the problem studied. It is designed together descriptive
information and provide information for formulating more sophisticated studies. Data
are collected by using one or more appropriate method, observation, interviewing and
mail questionnaire.
Target Group/ Population
As this research is based on Relationship Marketing my Target group is my Clients who
are using the Services of Tata Capital Ltd.
Area of Study
Karnal
Tools for Data Collection
The Various method of Data gathering involves the use of appropriate recording forms.
These are called tools or instrument of data collection.
Total No. of Sample
100 (Hundred)

RESEARCH INSTRUMENT:

A structured design questionnaire is used for surveying the consumers.

Both open ended and close ended questions are included.

Questionnaire
Close Ended Question
Are structured ones with two or more alternative responses from which respondent can
chose. They contain standardized answers and they are simple to administer and easy
to compile and analyzes.
Dichotomous or two- choice questions
A dichotomous question can be answered in one of the two responses such

as Yes

or No. It is necessary to realized that in many two choices question there may be
potential alternative beyond the stated two.
Multiple Choice questions
These questions contain more than two alternatives.
Following points should be remembered before making this question

The list of alternative choice should be exhaustive.

It Should not overlapping

There should be fair balance in choice

All alternative should be reasonable.

Sampling
The Basic idea of sampling is that by selecting some of the element in a population in
order to get first hand information of study.
There are two type of sampling probability Sampling & Non probability sampling and in
this research, Researcher has taken probability sampling.
Probability Sampling
Probability sampling is most commonly associated with survey based research where
you need to make inferences from your sample about a population to answer your
research questions or to meet your objectives. The process of probability sampling can
be divided into four stages:

Identify a suitable frame based on your research question or objectives

Decide on a suitable sample size

select the most appropriate sampling technique and select the sample

Check that the sample is representative of the population

The objective of probability sampling depends on the research question & on the
objective. Subsequently I need to have face to face contact with respondents.
Simple random sampling
Simple random sampling involve in selecting sample at random from the sampling
frame using either random no. table. In my research I had use random selection of
respondent who used to come for the loan taking purpose in Tata Capital Ltd. it is most
accurate and easily accessible form of sampling method .
Convenience Sampling
Convenience or haphazard sampling involve selection haphazardly those cases that are
easiest to obtain for your sample, Such as the person interviewed at random in a
shopping center for the interview programmed. The sample selection process is
continued until your required sample size has been reached. Although this techniques
of sampling is widely used it is prone to bias and influence that are beyond your control.
I has selected convenience sampling as some of the respondent are my clients only.

Technique used for analysis & interpretation

Bar Diagram & Pie Chart

Percentage Analysis

Some Car Companies:

 Maruti Suzuki- Alto, Wagon-R, Swift, Zen, Van,

Hyundai- Accent, I-20, I-10
Honda- Civic, Honda City
Mahindra- Logan, Scorpio
Tata- Safari, Indigo, Sumo
GM Spark, Cruise, Beat, Magnum

Gypsy,Sx4, Eco

MEANING OF LOAN:
Loan means a credit facility where the money is disbursed in the beginning, mostly in
one stroke, and later on only recoveries in the forms of installments take place in the

account. Very often the two words Loans and Advance are interchangeably used
without observing any difference in their meanings. But there exists a fine degree of
distinction between the two words. Loan means a credit facility where the money is
disbursed in the beginning, mostly in one stroke, and later on only recoveries in the
forms of installments take place in the account. In case of Advance, credit facility is
availed of as and when needed and continuous debit and credit operations are made in
the account, within the prescribed limit. Thus, credit facilities repayable in installments
are loans and credit facilities like cash credit and overdrafts where cheque book facility
is also given advances. In case of loan, except initial disbursal, no further debits are
allowed barring interest being debited by the bank. The account will have credit entries
only by the way of recovery and balance outstanding will gradually decline. But in case
of Advance, cheque book remains with the borrower and any number of debits and
credits are permitted with in the agreed limit. In banking parlance, mostly the deposits
are payable on demand including term deposits, which too can be discounted at any
time and as such Advances are preferred as compared to Loans for simple reasons
that advance can be recalled on demand whilst loan will be repaid only in installments
over a long period. Although the logic of such preference is practically not visible since

the cash credit accounts are never repaid and only limits are enhanced every year while
the loans are at least paid back gradually. However, traditionally banks prefer facilities
which are payable on demand. Moreover, for granting loans, others specialized

agencies like State Financial Corporations have been promoted and they dont sanction
advances.

TYPES OF LOANS
Banks grant loans for different periods- short, medium and long, and for different
purposes. Broadly, the loans granted by banks are classified as Error! Bookmark not
defined.

1. Short term loan

Short term loans are granted to meet the working capital needs of the borrowers. These
loans are granted for granted less than a year. These loans are granted against the
security of tangible assets- mainly the movable assets like goods and commodities,
share, debentures etc. since April, 1995 reserve Bank of India has made in mandatory
for the banks to grant a portion of bank credit to big customers in the form of loans,
which may be the various maturities. The reserve bank of India has also permitted the

banks to roll over such loans, i.e., to extent loan for another period at the expiry of the
tenor of the first loan.

2. Medium term loan & long term loan

Medium and long term loans are usually called Term Loan. Medium terms loans are
granted for more than a year and less than three years and long term loans are granted
for more than three years and are meant for purchase of capital assets for the
establishment of new units and for expansion or diversification of an existing unit. Bank
usually grants such loans together with specialized financial institutions like Industrial
Finance Corporation of India, Industrial Credit and Investment Corporation of India etc.

3. Bridge loans

Bridge loans are essentially short term loans which are granted to industrial
undertakings to meet their urgent and essential needs during the period when
formalities for availing of the term loan sanctioned by financial institutions are being
fulfilled or necessary steps are being taken to raise funds from the capital market.
These loans are granted by banks or by financial institutions themselves and are

automatically repaid out of amount of the term loan or the funds raised in the capital
market.

4. Composite loan

When a loan is granted both for buying capital assets and for working capital purposes
it is called a composite loan. Such loans are usually granted to small borrowers, such
as artisans, farmers, small industries etc.

5. Consumption loan

Though normally banks provide loans for productive purposes only, but as an exception
loans are also granted on a limited scale to meet the medical needs or the educational
expenses relating the marriages and other social ceremonies etc. of the needy persons.
Such loans are called consumption loans.

GROWTH RATE IN CAR LOAN

Guidelines
A person wants certain luxuries forCPV
enjoying
his life and a car is one of them, a car
gives
himpoint
convenience
to(CPV)
travel includes:
one place to another. Now a days it become a status
Contact
verification
symbol in society. So it becomes a need of every human being but some people does
Physical verification of residence and office
not have the capacity to pay a huge amount at a time but they can pay the price in
Tele verification at residence and office
installment so for these people many banks/financial institution offer car loans
Directory Check
schemes. In which they can buy car and pay its price in installment. Almost everyone
make easier to purchase a car.
Status of the CPV will be based on all the factors mentioned below:

Now days car is become one of the basic need of man but buying a own car

The address as given in the application form exits

become a dream for man because of its prices.
The applicant / Co applicants stay / work at the given address
So in fulfillment of this dream man, needs help. In this condition Tata Capital

The applicant is normally contact able at the given segment of the car
Ltd take a Initiative to provide easy car loan to those people who are willing to

The standard of living is appropriate with the segment of the car

buy a own car.

The
People
appreciating
carare
loan
scheme
TataisCapital
Ltd and
this can be
thirdare
party
confirmation
positive
& of
there
no negative
remark

proof by figures
show that
total amount
of carname
loan scheme
Directory
checkwhich
confirming
thethe
address
and the
of the is
customer
increase in
2007-2010 amazingly.
including
relatives.

The vehicle should be for self/family/company use.

In cases where the CPV is marked as negative the below mentioned deviation grid
will be applicable
THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST THREE YEARS:YEAR

2008

2009

2010

Car Loan

37.88%

22.6%

38.8%

Condition
Growth%

Deviation Level

The address as given in the application No deviation

CPV conducted at the right address.

The

applicant/Co-applicant

do

stay/work at the given address

not No deviation
The correct address to be obtained at
CPV conducted at the right address.

The applicants normally not contactable No deviation

at the given contact address

The correct address to be obtained at

CPV conducted at the right address.

No of times CPV fired on new addresses L2

excluding the application address

L3

The standard of living is not appropriate L2

with the segment of the car
Any other deviations

L3

For CIBIL Matches :

The match should be a good match of an installment loan with at least a 12

month vintage and loan amount to be >=50% of the applied loan amount,

Any one of address residence/office in the application form should match one
of the last two addresses in the CIBIL report.

ANALYSIS
OPPORTUNITIES
As car loan is a profitable lending option due to continued good performance of the
services sector, the bank will continue to focus on this segment. The bank will continue
to study the market requirements, evolve innovative and diversified products to reach
the customers in every nook and corner of the country.
For better decision support system,business intelligence, management information
system and decision making. The bank is in final stage of rolling out data warehouse.
Repayment
Definition
RISK AND CONCERNS

The repayment should be from the Banks, NBFC or Financial institution,

Libralisation opens up various opportunities and at the same time it also increase
who share customer database with CIBIL.
exposure to risks. Risk management, therefore, is paramount. Since risks have a direct
Valid repayment
proof
CIBIL,
Statement
account,
12 months
Bank
EMI
and proportional
relation with
returns,
the bank
has toofclearly
envisage
its risks
which
debit effectively. Further risks management system need to be brought to
can be managed
such a
level
of sophistication
that clean
the systems
on their
ownor
generate
adequate
Minimum
12 months
repayment
track
track of
at leastcapital
50%
and liquidity cushions against economic and market distruptions.
competed tenor whichever is less required

Loan should not have been completed before 18 months prior to the date of
application
should
not be more than 2 bounces in every completed 12 months
Q1.
DoThere
you have
a car?
payment
a) Yes 80%
b) No 20%
There should not be more than 1 bounces in the last 12 months of the loan
tenor

Repayment Policy

Sales

Criteria

Credit norms

Deviation

Vehicle

A1, A2, A3 and MUV segment vehicle as defined in No Deviation

segment

LTV matrix

Loan Eligibility

Please Note: Eligible loan amount will be the lower of

20%

EMI multiplier and loan amt. multiplier for applied tenor

<= 36 months and higher if applied tenor is > 36 month
Product

EMI multiplier

Loan

amt.

Yes
No

L1 for Funding
> Loan eligibility
up to 5%

Multiplier

Interception:
LTV

AL

50 times

1.5 times

L2 for funding

PL

50 times

1.5 times

> Loan eligibility

CV

25 times

0.5 times

up to 10%

Repayment

Int. Repayment

Ext. Repayment

12-24 months

Normal

Normal

25-36 months

+10%

+5%

>36months

+15%

+10%

80% respondent have a car

(Vintage)
20 % do not have.
Inference:

Most of the people have car.

No Deviation

Q2. Are you aware of Products & services provided by Tata capital
Ltd?.

a) Yes 70%
b) NO 30%

% OF PEOPLE

32%

YES
NO

By
68%

the

help

of

Manuals:
Tata Capital
report 2010
and internet
Interception:
70% people are aware about the product & services by Tata Capital Ltd
30% are unknown to it.
Inference:
Most of the people are known to product & services by Tata Capital Ltd.

By the help of Other Sources

By the Heads & the consultant of Tata Capital Ltd.
By Personal Surveys

By the helps of Websites

www.tatacapital.com
www.google.com

Questionnaire
Name- ____________________________________
Occupation- ______________________________
Contact Detail- ___________________________

Q1. Do you have a car?

a) YES
b) NO
Q2. Have you taken car on loan or self financed?
a) ON LOAN
b) SELF FINANCED
Q2. Are you aware of products & services provided by Tata Capital Ltd.
a) YES
b) NO

Q3. If yes are you aware of the advance products (Loan segments) of Tata Capital Ltd.
a) YES
b) NO

Q4. Which bank/financial institution you prefer for taking loans:

a)
b)
c)
d)
e)

Tata Capital Ltd

SBI
HDFC
ICICI bank
Other Bank, Specify (___________)

Q5. If you prefer Tata Capital Ltd for taking loan than what influence you to take loan
from Tata Capital Ltd.
a)
b)
c)
d)

Transparency
Lowest interest rate
Lowest EMI
Fast & simple service

Q6. Which loan product of Tata Capital Ltd you have used?.
a)
b)
c)
d)
e)

Home Loan
Education Loan
Car Loan
Personal Loan
Other Loans, Specify (____________)

Q7. How long you have been availing the loan?

a)
b)
c)
d)

< 1 year
1 < 5 years
5 < 10 years
> 10 years

Q7. What do you feel about the services providing by Tata Capital Ltd in advance
product.
a)
b)
c)
d)

Bad
Satisfactory
Good
Excellent

Q8. Which feature you like most in loan segments of Tata Capital Ltd.
a)
b)
c)
d)

Less paper work

Attractive interest rate
Transparency
Simple & fast processing

Q9. Any suggestion you want to give for the betterment of TATA CAPITAL LTD advance
product.

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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